Introduction
For over seven decades, Johnstone Supply has solidified its position as a cornerstone of the HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration) wholesale distribution industry in North America. As of March 18, 2025, the Portland, Oregon-based cooperative operates more than 450 locations across the United States and Canada, supported by a network of six advanced distribution centers. With annual sales exceeding $4 billion, Johnstone Supply is not just a distributor but a vital partner to contractors, offering an unmatched blend of product availability, technical expertise, and community-focused values. This article explores the company’s rich history, operational model, technological advancements, and its enduring impact on the HVACR sector.
Founding and Early Years
Johnstone Supply’s story begins in 1953, when founders Johnson and Stone opened a modest refrigeration supply store in Portland, Oregon. The post-World War II era saw a surge in demand for cooling and heating solutions as suburban America expanded, and the duo aimed to capitalize on this growing market. However, the business struggled initially, lacking the scale and vision to compete effectively. Enter John Shank, a pivotal figure in the company’s history. In the late 1950s, Shank purchased the operation from Johnson and Stone for $19,000, recognizing its potential under dedicated leadership.
Shank’s early tenure was marked by a focus on refrigeration parts, but he quickly expanded into broader HVAC offerings as the industry evolved. His hands-on approach and keen understanding of contractor needs laid the groundwork for growth. By the 1970s, Johnstone Supply had multiple locations, but rising operational costs prompted Shank to rethink the business model. In 1981, he made a transformative decision: restructuring Johnstone Supply into a cooperative. This shift allowed independent store owners to become co-op members, pooling resources and sharing ownership while benefiting from centralized support. With 32 stores and $28 million in sales, the cooperative model took root, setting the stage for decades of expansion.
The Cooperative Advantage
The cooperative structure remains Johnstone Supply’s defining strength. Unlike traditional corporate distributors, Johnstone empowers its members—independent business owners—to operate under a unified brand while retaining local autonomy. This model fosters a unique blend of entrepreneurial spirit and collective power. Members gain access to centralized merchandising, warehousing, and financial services, funded by membership fees, while a seven-member board of directors, elected from the co-op, oversees strategic direction.
This structure has tangible benefits. By 2006, Johnstone reached $1 billion in annual sales, doubling to $2 billion by 2017 and surpassing $4 billion by 2025. The cooperative’s buying power allows it to negotiate competitive pricing with manufacturers, passing savings to contractors. Its six distribution centers—in Portland, Allentown, Memphis, Dallas, Joliet, and Reno—ensure rapid delivery, with many locations offering same- or next-day service. This efficiency is critical for contractors facing tight project deadlines, making Johnstone a preferred partner in both urban and rural markets.
The cooperative also cultivates a sense of ownership among members. Store managers, often long-term employees or family successors, bring deep local knowledge to their operations. This contrasts with larger, centralized competitors, enabling Johnstone to tailor its inventory and services to regional needs—whether it’s heat pumps for the Northeast or cooling systems for the Southwest.
Product Offerings and Market Reach
Johnstone Supply serves a broad spectrum of HVACR professionals, from residential contractors to commercial and industrial specialists. Its product catalog, a cornerstone of its reputation, has evolved from a monthly mailer in the 1960s to a comprehensive resource featuring over 27,000 items by 2025. The company stocks unitary equipment (like air conditioners and furnaces), specialty products (such as ductless mini-splits), and OEM parts for nearly every major brand, including Carrier, Trane, and Lennox. It also offers maintenance supplies, tools, and emerging technologies like smart thermostats and air quality monitors.
The company’s market reach spans 47 U.S. states, Guam, and Canada, reflecting its adaptability to diverse climates and regulations. In 2024, Johnstone expanded its Canadian presence with new stores in Alberta and Ontario, capitalizing on the region’s growing demand for energy-efficient HVAC solutions. This geographic diversity is matched by its customer base, which includes small family-run businesses and large facilities maintenance firms. Johnstone’s ability to serve both ends of the spectrum underscores its versatility and contractor-first ethos.
Technological Innovation
Johnstone Supply has embraced technology to stay ahead in a competitive industry. Its eCommerce platform, revamped in 2023, saw a 47% year-over-year sales increase in 2024, driven by enriched product data and a mobile app that puts ordering and technical support at contractors’ fingertips. The app’s features—real-time inventory checks, order tracking, and troubleshooting guides—reflect Johnstone’s commitment to streamlining contractor workflows.
Behind the scenes, Johnstone leverages advanced systems to enhance operations. In 2013, it adopted Infor Distribution SX.e, integrating it with Infor ION middleware and Infor Ming.le for social collaboration, improving communication across its decentralized network. Many member stores use Epicor Eclipse ERP software, customized for Johnstone with features like nightly pricing updates and inventory sharing between locations. These tools ensure consistency and efficiency, even as the cooperative grows.
Johnstone also invests in training through Johnstone University, offering in-person and online courses on topics like refrigerant transitions (e.g., the shift to A2L refrigerants in 2025) and system diagnostics. This technical support empowers contractors to tackle complex installations and comply with evolving regulations, reinforcing Johnstone’s role as an industry knowledge hub.
Navigating Challenges
Johnstone Supply’s history is not without challenges, but its resilience has been key to its longevity. The 2008 financial crisis tested the cooperative’s mettle, yet its decentralized model allowed members to adapt locally while leaning on collective resources. The COVID-19 pandemic brought new hurdles—supply chain disruptions and labor shortages—but Johnstone responded adeptly. By diversifying suppliers and stockpiling high-demand items like hands-free fixtures and UV air purifiers, it minimized delays. The company also hired nearly 300 employees and opened 15 new branches in 2020 alone, turning adversity into opportunity.
More recently, Johnstone has navigated the HVACR industry’s shift toward sustainability. The 2025 phaseout of high-GWP refrigerants under the AIM Act prompted the company to expand its stock of R-454b-compliant systems and train contractors on their use. This proactive stance aligns with its leadership in environmental initiatives, such as the Thermostat Recycling Corp.’s Banish Mercury Off the Planet contest, where Johnstone has topped mercury recycling totals for 11 consecutive years as of 2023.
Community and Culture
Johnstone Supply’s impact extends beyond commerce into community engagement. Since 2014, it has partnered with Operation Homefront, providing financial aid and HVAC equipment to veterans. In 2025, following Hurricane Helene’s devastation in the Southeast, Johnstone stores donated units to rebuild affected communities, earning praise for its responsiveness. Locally, members host trade shows and sponsor events, strengthening ties with contractors and residents alike.
Internally, Johnstone fosters a family-oriented culture. Many employees and store owners have decades-long tenures, a rarity in today’s workforce. The cooperative promotes from within, offers competitive benefits, and celebrates milestones—like reaching $4 billion in sales—with member-wide recognition. CEO Lance Devin, who joined in 2022, has emphasized this culture, noting, “Our people are our strength. Every store reflects the passion of its team.”
Leadership and Vision
Devin’s leadership builds on a legacy of forward-thinking executives. DeWight Wallace, CEO during the $2 billion milestone in 2017, set ambitious goals that Devin has continued to pursue. Under his guidance, Johnstone opened a flagship branch in Braintree, Massachusetts, in 2024, featuring a 4,000-square-foot showroom and training center. Devin’s vision includes hitting $5 billion in sales by 2028, driven by eCommerce growth, Canadian expansion, and deeper partnerships with manufacturers like Rheem and Daikin.
The Future of Johnstone Supply
As Johnstone Supply looks ahead, its priorities are clear: innovation, sustainability, and contractor empowerment. The cooperative is exploring AI-driven inventory management to predict demand and reduce waste, while expanding its renewable energy offerings, such as solar-powered HVAC systems. Its commitment to contractors remains unwavering—whether through next-day delivery, technical training, or digital tools, Johnstone aims to make their work easier and more profitable.
The company’s cooperative model, once a bold experiment, has proven its durability. By blending local expertise with national scale, Johnstone Supply bridges the gap between small businesses and industry giants. As climate change and technological advancements reshape HVACR, Johnstone is poised to lead, honoring its 70-year legacy while embracing the challenges of tomorrow.
Conclusion
Johnstone Supply’s journey from a single Portland store to a $4 billion cooperative reflects a rare combination of adaptability, community focus, and contractor-centric innovation. Its 450-plus locations and 3,000-plus employees embody a network built on trust and shared success. As it approaches its eighth decade, Johnstone Supply stands not just as a distributor, but as a partner shaping the future of HVACR—one contractor, one community, one solution at a time.