Grainger expands in area

Lake Forest-based W.W. Grainger Inc., a distributor of maintenance supplies to industries nationwide, is expected to announce today it's expanding its workforce, adding and expanding facilities and offering more products.

Grainger is investing about $80 million nationwide in the expansion and has already made changes in Atlanta, Cincinnati, Denver, Seattle, Southern California, St. Louis and Tampa.

In Chicago, Grainger currently has 18 branch sites and will add four more, relocate three facilities and expand 12 other s.

"This is all in response to what our customers have been telling us they want, and they want us closer to them," said Brian Hopkins, Grainger's district branch services manager in Chicago.

The 80-year-old company has been expanding since 2003, focusing on its top 25 metropolitan markets. Since Grainger's expansion began, the company has added 53 new facilities, relocated 32 and expanded or enhanced 84.

It has about 600 locations nationwide and 17,000 employees who aim to boost sales to its customers, including manufacturers, contractors, schools and other businesses.

In the Chicago area, three new facilities will open: Elgin this fall, and Mundelein and Aurora early next year. A new facility in Joliet opened recently. Each site offers an array of products where their customers can buy directly.

Grainger also is moving long-established facilities into larger locations. This includes one from Wood Dale to Elk Grove Village; one in downtown Chicago to another Chicago area; and one within the Rockford area.

Twelve other area facilities will be expanded, Hopkins said.

Grainger also plans to hire 50 workers in its new and existing area facilities

In addition, Grainger will boost its product portfolio with more safety supplies, tools and other items, Hopkins said.

Wall Street analysts believe Grainger has been solid.

"For the second consecutive quarter, we believe Grainger successfully leveraged sales into solid earnings growth as it continues to manage its growth and productivity initiatives well," said a Bear Stearns & Co. Inc. report.

"We believe Grainger has reached a key inflection point, with profit growth exceeding asset growth, and a rising return on invested capital, which in our opinion should be a catalyst for multiple expansion," said a William Blair & Co. report.