A stronger foundation
for roofing supply company

By William Kenny
Times Staff Writer

In business, name means a lot. Sisters Linda Hill and Kathy Owsik have discovered the good and bad of that reality in the last six years as principals in a city-based construction supply company.
When Hill first bought the company out of bankruptcy and recruited a reluctant Owsik to help her run it, the name Stelwagon Roofing Supply was mud as far as product manufacturers were concerned.
But nowadays, vendors and contractors alike again view Stelwagon as a reliable and accommodating local alternative to the big national supply houses, just as it has been for much of the company’s 155-year history in Philadelphia.
That rejuvenated reputation has enabled regrowth for the firm, which recently opened a new 20,000-square-foot corporate headquarters and warehouse on a portion of the former Budd Plant site in Somerton.
The grand opening celebration at 10096 Sandmeyer Lane is planned for May 16. But in practical terms, the company is already doing a brisk business with the home repair and improvement season reaching full swing.
"Six-thirty in the morning is prime time in here. That’s when the guys come in, make their orders and load up," said Jim Wallen, the firm’s sales manager who was store manager under its prior ownership. "And they’ll come back at the end of the day if they can to reload for the next day."
In many respects, the supply business is a basic one. It’s about rounding up a wide variety of building materials from often far-off places and bringing them to the markets where they’re needed.
And despite the natural fluctuations of the real estate market, Stelwagon remained solvent and productive for the better part of a century and a half. At one time, it had eight locations in the region.
That changed in 2002 when the ownership filed for bankruptcy.
In retrospect, Hill and Owsik believe that the problem was not with the business, but rather mismanagement.
"(The owner) lost vendor confidence and they started shutting him off," said Owsik, the corporate secretary and director.
"They closed their doors in March 2002."
Hill, a married mother of five whose youngest kids at the time were reaching the age where she could afford to spend more time away from home, heard about the company and saw it as an opportunity.
"I had the ability to put up the financing for the venture and everybody in the family owns a business," said Hill, the owner and president. "I don’t think anybody in the family works for anybody else.
"I was anxious for my son (Nick) to get involved in something, so it was a career for him, too."
"We have roofers in our family and we saw the value in (the company)," Owsik added. "We felt it was viable."
The sisters grew up in Olney. Their maiden name was Waters. Now, Hill lives in the Northeast and Owsik in Delaware County.
Owsik, who studied engineering and business in college, wasn’t sold right away on the proposal but eventually agreed to dive in head first. Like Hill’s kids, her son was old enough to take care of himself.
"I was working part time, but I wasn’t committing to anything," Owsik said. "Then Linda approached me to get involved with this. She kept working on me until I said OK."
Wallen and Jim Bannon, a territory manager for the old Stelwagon, were integral to the venture. Bannon is now the company’s general manager.
"Jim Bannon and Jim Wallen came to us. They really wanted to do it themselves," Hill said.
"They set out to get the customers back that (the firm) had lost in the interim," Owsik said.
Hill secured a bank loan and a public loan from the Philadelphia Industrial Development Authority to buy the company in Bankruptcy Court. They reopened the firm’s North Philadelphia location at 16th Street and Belfield Avenue in August 2002.
They describe their market niche as small- and mid-sized contractors who prefer the high level of personal service, the convenience of a local supplier and premium products that some national chains don’t offer.
"They come in and we know who they are and we know what their order is," Owsik said. "They can call ahead and put it on their account with us. They get good products and better service.
"A lot of them shop for price, so you have to compete. But a lot of (suppliers) are exiting Philadelphia, which is good for us. If (contractors) run out of something or forget something, we’re here. We have coffee for them and a bathroom for them."
Growth has been steady under Hill and Owsik. In 2004, they opened a second location at Castor Avenue and Coral Street in Port Richmond. The following year, they opened in Camden.
"The down side of using the same name was, in the beginning, (vendors) wouldn’t open us," Owsik said. "But I’ve got to give Jimmy (Wallen) credit. He kept talking to them."
In May 2006, the company leased space in an existing sheet metal plant on Sandmeyer Lane and began the two-year process of building their new headquarters and largest warehouse to-date.
Along the way, the Women’s Business Enterprise Council has provided the company with strong support. As a certified women-owned business, Stelwagon can help contractors meet diversity requirements of government requests for proposals.
Hill and Owsik note that City Councilman Brian O’Neill was "instrumental" in helping them secure the site from the Philadelphia Industrial Development Corporation. Because the site is within a state-certified Keystone Opportunity Zone, Stelwagon also benefits from certain business tax credits.
With all the new space, Stelwagon will expand its inventory to include other home improvement supplies such as decking, siding, doors and shutters. They plan to stay in the Northeast indefinitely.
"We’re local people. We’re Philly people," Hill said. "We hire local people and we’re keeping money in Philly."
"We’d like to let everybody know we’re here, we’re staying and we’re for the little guys," Owsik said.
Call 1-866-606-6326 for information about Stelwagon Roofing Supply. ••