The decision by Home Depot to place their Apex Supply Co. and Maintenance Warehouse subsidiaries under the moniker of Home Depot Supply again raises the possibility that the giant home improvement chain could expand into the industrial supply business.

Apex Supply, a wholesale distributor of plumbing, HVAC and industrial pipe, valves and fittings, has locations throughout the Southeast.

Maintenance Ware-house sells maintenance, repair and operations products to owners and managers of multi-family, hospitality, educational and commercial properties, and to the government.

In a recent statement, Jim Stoddart, president of Home Depot Supply, said, "We are building a platform for future growth through superior services tailored to meet the needs of professional customers. We understand that each customer's needs are different, and we are committed to having the expertise to serve them uniquely. We're building our business around their business."

That seems to be the case. On its Web site, the company lists its customer segments as renovation contractors and custom builders, facilities maintenance professionals, plumbing contractors, HVAC contractors, industrial and mechanical contractors, and new home builders.

The word "platform" indicates that HD Supply will continue to expand its offerings to other customer segments. A few years ago, there had been speculation that Home Depot was negotiating to buy a large industrial distributor. If there were such discussions, they couldn't be proved.

It wouldn't take much for Home Depot to enter into the industrial supply business and expand its contractor supply offerings. For example, Home Depot has installed tool rental centers in more than 500 of its stores, with more openings planned. The tool rentals are designed to appeal to contractor customers—a direct shot at STAFDA-type distributors (Specialty Tools and Fasteners Distributors Assn.). Tools range from concrete saws and scaffolding to large hand tools.

Home Depot has the clout and buying power to sell products at drastically discounted prices. If distributors are to compete, they must provide customers with added value.

Home Depot has other competitors to worry about. Lowe's is nipping at its heels, and there is speculation by one trade publication that Wal-Mart could join the fray by offering an expanded line of tools. Wal-Mart has the power and store locations to compete in any market, as it showed when it entered the supermarket business.

Stay tuned.

jkeough@reedbusiness.com