12 minute read
r DEALER Brfeft
Sasser Lumber Co., ta Grange, N.C., has placed its 80-year-old retail and wholesale businesses up for sale.
Salem True Value Hardware, Salem, In., switched co-ops after 45 years, is remodeling, and has become Ace Hardware of Salem. as of Jan. 2.
Avery True Value Hardware, Newland, N.C., has been sold after 51 years of Banner family ownership.
Ace Hardware franchisee Chad Homan will open a new store next month in Faulkton, S.D.
Swartz Hardware, Nonantum, Ma., has been acquired by Senneth Berrier after 123 years of Swartz family ownership.
Ace Hardw?IO, Monroe, Ct., is closing.
Pro Hardware, New Paris, In., has been purchased by Tim Spurlock from Fritz and Norman Weaver, who after 32 years of ownership are retiring to Arizona.
True Value, Columbus, Ks., has been acquired by Jason and Lisa Hulvey, who will reopen by spring, once a full remodel is complete.
Contractor Randy Coble is overseeing the renovation and will serve as manager once the doors open.
Ace Hardware opened a new store in Hampton, Va.
Bunnell Hardware, Clarks Summit, Pa., closed after 103 years and auctioned off remaining inventory Dec. 28.
Carl's True Value, Tonington, Ct., was seriously damaged in an early moming fire Dec. 11.
E&H Hardware Co., Wooster, 0h., this spring will open its Ace Hardware store, in Avon Lake, 0h.
Anniversaries: Economy Lumber Co,, Tulsa, ok., B0th ... Pearson's Lumlier, Lexington, ok., 75th Trendel Lumber Co.. ottawa. Ks.. 15th
Cedar Creek Opening in Atlanta
Cedar Creek, Oklahoma City, Ok., anticipates an April I opening for a new distribution center in Atlanta, Ga., its sixteenth.
"This expansion into one of the nation's top housing markets underscores our ongoing commitment to growing Cedar Creek's geographic footprint," said c.e.o. Bill Adams. "Although we are currently servicing Atlanta from Birmingham, Al., our new location will assure that we provide the best possible service and localized product mix to our Atlanta-area customers."
D. Wayne Trousdale, c.o.o., added, "We found a great location, and we're in the process of assembling an excellent local team experienced in the Atlanta and greater Georgia markets."
U.S. LBM Adds Pennsylvania Yards
U.S. LBM Holdings, Green Bay, Wi., has acquired twounit Musselman Lumber, New Holland, Pa., from Galen Eby, Joe Good, and Bob Quinlivan.
The l02-year-old dealer had yards in New Holland and Ephrata, Pa., which will continue to operate under the Musselman name.
Suburban Detroit Chain Drops 2 Aces
Village Ace Home & Hardware is closing in Bloomfield Hills, Mi., this month and in Rochester, Mi., next month, reducing the chain to three locations.
The stores are currently liquidating. Owner Mark Elmer blamed the closures on an inability to renegotiate the leases with the landlords.
GAF Relocating Headquarters
GAF, North America's largest roofing manufacturer, will relocate its corporate headquarters-and 600-person staff-to Parsippany, N.J., once renovations on its new offices are completed.
For more than 30 years, GAF has been based at a 99acre campus in Wayne, N.J., sharing space with its affiliated companies. In 201I, GAF sold International Specialty Products to Ashland Inc., which announced last year that it would relocate its employees from the GAF campus to other locations in New Jersey.
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Distributed
Lumberyard Opens in lowa
Banowetz Lumber Co.. Anamosa. Ia., opened last month at the former site of Anamosa Building Supply, specializing in dimensional lumber, house packages, shingles, siding and hardware.
Owner Jeff Banowetz, a conftactor. is surprised the previous company closed last spring. "This community, with its growth, should be able to support a lumberyard," he said.
He's currently leasing the site, but hopes to purchase property to build a more modern facility.
MeadWestvaco Sells Otf Last of lts U.S. Timberlands
MeadWestvaco Corp., Richmond, Va., has completed the sale of all of its U.S. forestlands to Plum Creek Timber Co.. Seattle. Wa.
The $ I .l -billion deal includes 501,000 acres of Southeastern timberland, associated mineral and wind assets, and interests in 109,000 acres of rural and development lands in the Charleston. S.C.. region.
MeadWestvaco continues to own and manage 135,000 acres of forestland in Brazil.
A&M Picks Up Richmond DC
A&M Supply Corp., Pinellas Park, Fl., has acquired Atlantic Plywood's Richmond Va., distribution center, as its twelfth location.
Atlantic Plywood retains its l0 branches in the Northeast. "Atlantic
Plywood will continue to service its core customer base from New Jersey to Maine," said president Paul Vella.
The acquisition brings A&M added expertise in cabinet supply distribution, along with Richmond's HPL laminate manufacturing busiNESS.
"I am extremely excited about the opportunities to increase our service area in Virginia and to expand the manufacturing capabilities of the Richmond location into the Southeastern region of A&M Supply," said president and c.e.o. Raymond Prozzillo.
Gossen Expands in the East Gossen Corp., Milwaukee, Wi., has signed on several new distributors and sales agents to expand the reach of its cellular PVC products.
Princeton Forest Products, Orange, Ma., is now distributing the full line of Gossen decking, porchboard, exterior mouldings, trimboards and sheets in New England and the mid-Atlantic.
Genesee Reserve Supply's distribution centers in Buffalo and Rochester, N.Y.. are now carrying Gossen's Passport and Trailways decking and porch products in western New York. Reserve Supply, Syracuse, N.Y., is stocking the same lines for central New York.
Windward Sales, St. Augustine, Fl., is now repping Gossen products throughout the East Coast and Midwest.
Canfor Southern Pine witt invest $8 million to expand its SYP sawmill in Darlington, S.C., and will add a second shift by the fall.
Spearfish Forest Products, Spearfish, S.D., suffered damage to a planer building and adjacent shavings bin in a Dec. 2 fire.
ECMD, North Wilkesboro, N.C., purchased the 132,000-sq. ft. former Lifetime Doors facitity in Hearne, Tx., to renovate into its new Texas DC, replacing a leased Houston facility.
Public Supply, oktahoma City, 0k., is liquidating the last of its door and window inventory by appointment, months after the 67-year-old manufacturer/distributor closed and was olaced in receivership.
Prime-Line Inc., Malvern, Ar., will build a larger, $6.7-million fiberboard plant to meet increased demand.
Green Meadow Lumber, Westfield, Ma., escaped a Dec. 17 sawmill fire with minor damage.
Richard White Wood Pro. ducts relocated its log yard and offices to a new site in Morehead, Ky., to be closer to its hardwood timber suppliers. The former location is for sale or lease.
Headwaters Inc., s. Jordan, Ut., agreed to acquire an 80% share in Enteora roofinq manufacturer Roof Tile Inc.. okeeihobee. Ft.
Russin Lumber, Montgomery, N.Y., is now distributing Cali"fornia Redwood Co. redwood products in 13 Northeastern and mid-Atlantic states, starting with Clear All Heart, All Heart B, and Classic Heart lumber.
Mid-State Lumber Corp.'s DCs in Branchburg, N.J.; Kingston, Pa., and Warwick, N.Y., now distribute Fairway Building Products railings in New England and the mid-Atlantic.
Falls City Lumber, Louisville, Ky., is now distributing Integrity Cbmposites' DuraLid deckin! ani railing in Ky., Oh., In., and W.V., from its DCs in Louisville and Cincinnati, 0h.
Huttig Building Products, St. Louis, Mo., has begun trading its shares on the NASDAQ exchange under the ticker symbol "HBP."
Denny Meillier has retired after 25 years as president of Alexander Lumber, Owatonna, Mn. He is succeeded by his son, Josh Meillier.
Patrick Curtis, ex-Seaboard International, was named v.p. of sales for Concannon Lumber's Swindeman Trading division, Manchester, N.H.
John Edwards, ex-International Beam, has been named EWP mgr. for Cedar Creek, Statesville, N.C.
Craig Mitchell has rejoined the sales team at Linworth Lumber, Worthington, Oh.
John Fijalkowski was named purchasing agent at Mid-State Lumber, Branchburg, N.J., responsible for western red cedar, Blue Star meranti, fir and Tamko products. Travis Risser, ex-Babcock Lumber, is new as territory mgr. for Lancaster County and surrounding areas. Chris Saidla is now territory mgr. for New England. Lyle Tompkins, ex-Russin Lumber, is territory mgr. for the Albany, N.Y., area.
Chad Naish, ex-Birmingham International Forest Products, is a new southern pine trader at Stringfellow Lumber, Irondale, Al.
Frank Parrott, Matheus Lumber, San Marcos. Tx.. has retired after 30+ years in the industry.
Brian Callahan, ex-ProBuild, is new to outside sales with ReVosWel Truss & Lumber, Marion,Ia.
David Quintana has been promoted to store mgr. at McCoy's Building Supply, El Paso, Tx.
Jeff Brazezicke, ex-Blue Ridge Lumber, is new to outside sales and Kevan Phares, ex-Associated Materials, is a new engineered lumber specialist at Somerville Lumber Co., Bridgewater, N.J.
Dan Smith, ex-Lakeside Quality Building Products, has joined the trimboard sales team at Versatex, Pittsburgh, Pa.
Scott Berchiatti is new to Holland Southwest International. Houston. Tx., as business development mgr.
Steve Couch, ex-Carter Lumber, is now district mgr. for 84 Lumber, Muncie, In. Ben Ignatowicz is a new mgr. trainee in York, S.C.
Susan Susnowy is the new mgr. of customer service for Houston Fence Co.. Stafford. Tx.
Gina Cali, ex-Allied Building Products, is now key account mgr. in metro N.Y. for Kemper System America, West Seneca, N.Y.
Frank Carroll, ex-Knaack, is now general merchandise mgr. for Ace Hardware Corp., Oak Brook, Il.
David D. Bogue, ex-Home Depot, is new to truss design and sales at Timber Roots Truss Co., Sioux Falls, S.D.
Gary Hartman has been promoted to director of marketing & new business development at Chelsea Building Products, Oakmont, Pa. Brad Fello is now quality assurance mgr.
Mike Jost has been named v.p.-operations for ABC Supply, Beloit, Wi. Kathy Hendricks is now executive director oI customer connectivity.
Tony Vaden succeeds her as chief information officer. Chris Slusar is now corporate controller.
Barbara Anthony and Joseph Lalli were appointed co-presidents of Creative Millwork, Ashtabula, Oh.
Bruce Bunn has joined BW Creative Railings, Maple Ridge, B.C., as director of sales. Frank Girard is now senior financial mgr., and Phil Jones, controller. Kalvin Eden has been promoted to sales mgr. for BW Vista Railing Systems.
Rob Schmiedel was appointed nation- al sales mgr. for Do it Best Corp., Fort Wayne, In. Scott Orman is now national logistics mgr.
Jim Whitton, Hunter Panels, Portland, Me., was elected chairman of the Polyisocyanurate Insulation Manufacturers Association, succeeding Dr. Chris Griffin, Johns Manville. Denver. Co.
John Weinstein is now v.p. of sales & marketing for Xylem Group, Roswell, Ga.
Danny White, T.R. Miller Mill Co., Brewton, Al., was newly appointed to the Softwood Lumber Board by U.S. Agriculture Secretary Tom Vilsack, along with Charles W. Roady, F.H. Stoltze Land & Lumber, Columbia Falls, Mt., and Don Kayne, Canfor, Vancouver, B.C. Reappointed to three more years were Aubra Anthony Jr., Anthony Forest Products, El Dorado, Ar.; Alden J. Robbins, Robbins Lumber, Searsmont, Me., and Francisco Figueroa, Arauco USA, Atlanta, Ga.
Art Burne is manning the employee cafeteria at Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.
Xy Cary Vitale, President & C.e.o., hlorth,American Wholesale Lumber Associa{ion
D scnnolEss oF ouR eLACE in the lumber supply
I\chain-logger, mill, remanufacturer, wholesaler, retailer-the immediate future of our businesses will be determined by many forces beyond our control and several very much in our grasp.
The questions of growth and profitability will be impacted by the very small (the mountain pine beetle) and the very large (the urbanization policies of the Chinese government), and much in between (the ability of a young family to buy a new home, or the changing t4E@ credit policies of business lenders). With so many factors in play, what lies ahead for the lumber companies that have persevered and survived the devastating impacts of the great recession and the housing collapse?
Real recovery has been evident in recent months and there are many positive trends, and we are guardedly optimistic as we look at 2014 and beyond. What is clear is that despite generally rosy outlooks for lumber, not everyone in the industry will emerge from the recession and recovery as a winner.
There are many challenges ahead: dealing with credit issues, identifying trustworthy partners, introducing innovative products and practices, and understanding international impacts. Chief among the realities we face is the likelihood that the lumber supply cannot keep pace with growing demand.
Gonstraints on the supply side
While there are varied predictions on how much the lumber supply will tighten, there is a strong consensus among industry experts that supply will not be able to keep pace with demand increases in the U.S. and Chinabeginning this year and continuing over perhaps the next five years.
To dig deeper into this issue, I talked recently with Henry Spelter, a partner and forecaster with Forest Economic Advisors. He predicts that by 2Ol5 or 2016 demand will double to 1.5 billion board feet-twice the current demand-a level that will come up against major supply constraints.
The biggest constraint is the pine beetle epidemic. It is reaching its climax in British Columbia (B.C.), but the wood that has been infested is less useful and a good chunk of supply will be taken out in coming harvests. In 2013, demand was up 57o to l}Vo, but B.C.'s harvest was the same as the previous year and its ability to respond to increasing demand is very low. This is likely to reduce B.C.'s role in the supply mix.
Mill closures due to recession are a factor. but not an enormous one, because much of their output has been replaced by more production at other mills. Still, there has been a loss of about 7 billion board feet in production capacity-about ll%o.
A third supply constraint is government policies, which are especially limiting in the U.S. Pacific Northwest. These include limitation of timber harvests from public lands, lumber trade restrictions, and log
North American Wholesale Lumber Association
to grow as China moves to urbanize its population. One result is likely to be higher prices for wood. If demand bumps against constraints, log prices will go up. Now about $400 per I,000 bd. ft., the price could get to $500 or even $600 or $700. If so, alternative building products such as steel, plastic and composites will become more attractive building products.
What to do
Keep your suppliers close. Regardless of the exact levels or causes of the supply shortage, it is increasingly important for lumber wholesalers to solidify relationships with your suppliers and reach out to new possible sources before we are desperate. The competition will intensify in coming months, and those who are well positioned with suppliers will have an advantage.
Listen to the sound of the future. I invite you to join me for what will be a very important 2014 NAWLA Leadership Summit, March 30-April I, at Callaway Gardens, near Atlanta. It will be a timely gathering for all of us, as we face these challenges. Seven industry leaders have agreed to speak to us about the futureabout outlooks in various regions, U.S. and international developments, and navigating changes in the supply chain.
The speakers are Don Kayne, president/c.e.o. of Canfor; Marc Brinkmeyer, chairman of Idaho Forest Group; Jack Koraleski, president/c.e.o. of Union Pacific; Kimmo Jarvinen, secretary general of the European Organization of the Sawmill Industry; Jon Biotti, managing director of Charlesbank Partners; Peter Alexander, c.e.o. of BMC, and Curt Stevens, c.e.o. of Louisiana Pacific. I urge you to consider attending this Summit as we begin a new phase of lumber industry recovery. For more information, go to www.nawla.org.
export duties and restrictions.
Spelter says the high point of production, in 20042005, was 65 to 70 billion board feet a year. Today, there is 50-55 billion board feet of capacity being used of the nominal capacity of 63 billion board feet (effective or real usable capacity is less because some mills are mothballed).
Supply limitations come at a time when U.S. housing starts are trending upward and Chinese demand continues
Position yourself to compete. In this new environment, securing good deals with suppliers will become very competitive. Also, anticipate competition from engineered woods, plastics, vinyl decking and composites, which are likely to become a large part of the market. As one insider said, "We're going to have to stay alert and act decisively to get our share."
Caution: sharp elbows may prevail.
By Brooks Mendell, Forisk Consulting