Despite housing slump, Texas retailer maintains relationship with HBA

Cadenhead Servis Gas reacted to the new-home construction boom about six years ago by involving itself in the local homebuilders association.

Even with that market going from boom to bust, the Dallas-area company hasn’t changed its outlook or regretted its decision. It continues to find value in networking with builders and other association members.

“Obviously it’s not as beneficial as it was in the past, but it’s going to come back,” says Larry Baty, the company’s operations manager, who sits on the board of the Home Builders Association of Greater Dallas’ Metro East Division. “We feel that by maintaining relationships with the HBA and individual members – we’ve been involved and our name is out there – it will pay off again.”

At the height of the housing boom, between 2004-08, Cadenhead Servis Gas was adding propane throughout 150 to 200 new houses a year – for central heat, water heat, cookstoves, dryers, fireplaces, pool heaters and grills. Rebates in Texas at the time only pushed more propane appliances into the home, Baty says. Cadenhead Servis Gas also did most of the underground tank installations – mostly 250-gallon tanks but many 500s and some 1,000s.

“When we really started to see tremendous growth in this area for new homes, it was such a big thing that we were looking for ways to get more involved and get our name out there,” Baty says. “We tried the chamber of commerce and that type of thing, but that [the homebuilders association] seemed to be the one that helped us the most.”

Baty (pictured here, left) says the association “opens a lot of doors” for the company, not only with builders and remodelers but also with electricians, plumbers, roofers, real estate agents and other support-type industries, which could refer Cadenhead Servis Gas for the house’s propane needs.

“It’s a good organization to get involved in, a tremendous networking-type organization,” Baty says. “People seem to be trusting and loyal to other members of the organization. They prefer to work with someone in the HBA versus someone not in the HBA.”

Today, the company services only about 25 new houses a year, but Baty, a 31-year veteran of the company, sees improvement in the market, especially in fast-growing Rockwall County.

“A lot of the builders go away and some hang on,” he says. “When housing starts booming again, those that hung on and you kept relationships with will be the first to come back to you.”

LOCATION: Royse City, Texas
FOUNDED: 1978
EMPLOYEES: About 20
CUSTOMERS: 4,500
BOBTAILS: 5 (with 1 transport)
SPECIALTY: The Dallas area offers the company a year-round forklift cylinder business.
ONLINE: www.servisgas.com