A Look at Luxury

In May 2020, as much of the world was in COVID lockdown and businesses struggled to keep their doors open and accounts in the black, Erik Billet, CEO, and his business partner, Jude David, executive chairman, opened Stately Doors and Windows.

The initial companies Billet and David acquired to launch the company had supply chain difficulties and Billet describes the owners as “skittish” about the future of the industry. He shares many businesses were undervalued during this time, which made it a good time to acquire them. The first two had good stock inventory, solid supply chain and good relationships, which “muted” the COVID risk, he said.

Stately has acquired eight companies in the wood, window and millwork space in the past 4½ years in its quest to build a national brand that caters to ultra-high-end solutions for builders, architects and designers.

Sustainable growth

Billet credits the people he and David have put in place as the key to successful, sustainable growth. They are honest with themselves about where their expertise lies and also don’t buy companies and then “strip them for parts.” “We buy them, then we grow them,” he says. They look for companies with a strong history and profitability but that has hit a ceiling, such as ownership not being in a position to make the next investment or blockages against getting outside their current market.

Billet aims to come in and honor the legacy of the companies they acquire. He takes pride in the fact that Stately has never laid off an employee in its acquisition history. The experts in that company guide the capital and they work together to decide where to invest, how to make the finances work and how to build solutions for the high-end space.

Stately’s most recent acquisition was that of Reilly Architectural, a business unit of Pella the company decided to divest. Although Billet says he was not the highest bidder, Stately Windows and Doors was the bid with which Pella felt most aligned. A 30-year-old company, Pella wanted Reilly to be in the ownership of someone who viewed it as a long-term view.  

The pandemic may have driven the inception of Stately, but succession planning is helping it continue its growth trajectory. Billet notes many business owners are at retirement age and looking to transition their businesses in a way that protects their employees and in which the company will continue to grow.

Labor

As with nearly all companies, Stately feels the crunch of the labor shortage. Billet says people are pushing back into the trades now, but it’s going to take time and effort to change the misconception that trade school is lesser than a four-year degree.

The luxury market Stately serves means it has a bit of a different manufacturing process. “We can’t go out and buy a few million dollars of machinery,” Billet says. “We have to have craftspeople that are building these products with a human artisanal touch.” He has, however, attracted some talent with having apprenticeships where the young talent works with artisans that have been crafting these products for several decades that are “truly building works of art.”

Insulated luxury

Window + Door’s Top Manufacturers Report and the Window & Door Market Report in partnership with John Burns Research and Consulting indicate the luxury market is largely insulated from the inflation challenges many companies face. Billet agrees. Much of it has to do with the high-end clientele who don’t finance their homes in traditional ways. Rather, they build with cash or take a loan from their own companies.

There also isn’t an efficient way to build many of these products, Billet says. “There’s no efficient way to build a 20- by 10-foot door that sinks into your basement. The companies that build their businesses around efficiency can’t do that, which has allowed the handful of players in the ultra-luxury space to keep bringing business in.”

Ultimately, Billet says this is a “fun, exciting” space to be in. “We never know what the next request is and that makes it even more fulfilling when we get it done.”

Looking ahead

Stately Doors and Windows likely isn’t done growing. In addition to geographic expansion, Billet hopes to grow into hospitality. Along with the Reilly acquisition, Stately acquired Bayou Wood Products in north Louisiana, which is its first foray into millwork. Billet has found architectural millwork is among the first trades to go into a luxury boutique hotel. This millwork acquisition, Billet hopes, will enable Stately to be a “one-stop-shop” for millwork, windows and doors. Stately is also exploring growth into the aluminum space.

Although working across different materials can be challenging, Billet envisions being a company that can serve the entire spectrum of a build and create an aesthetically consistent structure while making it easier for the builder since they’d be able to use Stately for many different needs.