Making energy efficiency a growth engine

fT'S BEEN said that there are no lcertainties in life exceot death and taxes, but I propose that there is at least one more-energy efficiency.

At least, in the realm of residential construction and the retail supply chain, there is no doubt that both market and government requirements for energy efficiency will continue to grow for the foreseeable future. There are several drivers, and suppliers who understand them can shape their retail strategies and tactics to maximum benefit.

Let's start with the macro-economic trends. Regulations are toughening energy efficiency requirements in building codes and making green building guidelines mandatory. Nascent energy retrofit programs will likely continue for years, supported by rebates and other incentives. Carbon regulations, coupled with supply and demand issues, ensure that the long-term costs for fossil i fuel will increase. Homebuyers are F seeking. and will continue to seek. q*- "' more energy efficient homes, and home builders are learning that energy efficient homes are easiest to sell and at premium prices.

Lastly, product manufacturers will continue to rollout technology innovations that make it easier to build energy-efficient homes and retrofit existing ones. The upshot of all this is that there will be a growing number of pros and homeowners looking for options that contribute to energy efficiency.

For dealers and distributors, the obvious strategic play is to position your company as an authority on energy efficiency. The key to making this work is finding ways to build energy efficiency knowledge into the fabric of your organization, and this requires an investment in people. Involve everyone at the beginning. Identify key management and staff and send them to training. Make them responsible for creating a plan for including additional staff, identifying key products appropriate for your region, creating effective merchandis-

By Jay Tompt

them the centerpiece of your merchandisins effort?

With organizational knowledge in place and innovative products on the shelf, the next step is connecting with customers. Signage in your store and yard should be a given. The overall message hierarchy should emphasize staff expertise, low cost of ownership, rapid payback, rebates, and incentives.

There should also be plenty of opportunities for customers to educate themselves, so hangtags, booklets, kiosks, and other ways of offering customers more information are key. Most product manufacturers will gladly help with this task, so don't be shy about asking them to contribute.

Finally, host energy efficiency workshops led by your most capable staff and invite local weatherization and retrofit firms. Keep in mind there are a growing number of non-profits doing this work, too, as well as city leaders, green building experts, and, of course, your best customers.

ing programs, and reaching out to key customers. While LEED seems the obvious choice, I recommend having a look at Passive House Institute (www.passivehouse.us), which promotes the most innovative approaches to energy efficient building design.

While there are a growing number of product and material innovations, it's important to choose products that work in your region and clearly demonstrate that you're on the leading edge. Energy lost through windows is enormous, so why not stock the most efficient options and make

From new home construction to home improvement projects, the leading priority is, and will continue to be, energy efficiency. Dealers that invest the energy in making themselves experts will have created a growth engine that will carry them through the next business cycle and beyond.

- Jay Tompt is managing partner of William Verde & Associates, a consulting firm dedicated to helping LBM and home channel retailers, distributors and manufacturers become green leaders in their communities. He can he reached at info@ williamverde tom or (4 I 5 ) 321 -0848

Boston Pro Suppliers Sold

New England Building Supply is the new name for R&R Sales' Boston, Ma.-based lumber, door, drywall and floor supply businesses after their acquisition by Hampden Holdings.

New England Lumber, New England Door Supply, New England Drywall Supply, and New England Capitol Wood Floor Supply had operated side-by-side on Hampden Street, together employing 65.

Hampden principal Russell Smith had been looking to reenter the industry since selling mid-Atlantic drywall supplier Arkay Building Supply to Strober in 2000. He will serve as president, with Jim Paskell continuing as v.p. and minority owner.

Previous majority owner Robert Raimondi Sr.. who launched R&R in | 989. sold inventory. equipment. accounts receivables, and company names, but retained ownership of the land, including the Boston property, which he will lease to the buyers, and a now-vacated lumberyard in Hanson, Ma. His hardware store, Flood Square Hardware, South Boston, Ma., was also not part of the deal.

Martin Upgrading Plywood Mill

RoyOMartin, Alexandria, La., will spend $10 million on improvements at its SYP plywood plant in Chopin, La.

The centerpiece of the project will be a fifth dryer, which will cost $6 million and raise capacity by 257o to 500 million sq. ft. per year.

Construction, expected to begin last month, should be complete by early spring 2010.

Orgill Unveils Gigantic DC

Orgill, Memphis, Tn., began shipping from its new Mid-America SuperCenter in Sikeston, Mo., Aug. 3.

The $40-million, 795,000-sq.-ft. distribution center stocks an estimated $35 million in inventory.

Wisconsin Chain Gets Showy

Marling Lumber has opened a HomeWorks decor showroom in Janesville, Wi., and relocated its company headquarters from Madison, Wi., to the new 17,000-sq. ft. facility.

Founded in 1904, Marling spent $2 million and the last two years transforming a former Wolohan Lumber yard into the elaborate showroom. Displays include a functioning kitchen area; closet, bath and office cabinets; energy-efficient products, and an "aging in place" section targeted at homeowners who want to remain in their homes as they grow older.

Marling also has HomeWorks units in Madison. Waukesha and Green Bay, lumberyards in Janesville and Madison, and a door plant in Edgerton.

HomeWorks stores provide one place to sell products from all divisions. "Our cabinet people were doing one thing, our lumber people referring another way, and wholesale doing something different," said c.e.o. Kurt Marling. "Now, it's under one roof, and everyone's working together to benefit customers and contractors."

Bison Released From Leases

A bankruptcy court judge has freed Bison Building Materials, Houston, Tx., from 1l property leases that it claimed were preventing it from returning to profitability.

Bison stopped rent payments in May after closing the yards earlier in the year. They include San Antonio, Conroe, Irving, and three in Houston, Tx.; Albuquerque, N.M.; Las Vegas, Nv.; Monroe, Oh., and two in Aurora, Co. The chain said it had attempted to sublease the shuttered facilities, but could not find tenants for the majority.

Bison traces its problems to overaggressive expansion along the Interstate 35 corridor. Once with 24 locations, Bison now has eight yards in the Houston and Beaumont region.

NewYork Chain Shuts Down

Weisman Discount Home Centers. Queens, N.Y., has filed to liquidate under voluntary Chapter 7 bankruptcy and closed its eight stores.

The 77 -year-old retailer owes a total of between $10 million and $50 rnillion to more than 100 creditors. who will meet this month to divvv uo its assets.

Columbus Wins Exemption

Columbus Lumber, Brookhaven, Ms., received a Freeport warehouse exemption that removes taxes on products shipped out of state, saving the company about $9,000 a year.

As co-owner Doug Boykin explained to local officials, every penny counts during the worst housing and lumber markets in decades. "We think it's going to turn around next year, but it's going to be a slow climb," said Boykin. "We asked for the board's help so we can make it through."

He said that last year 79Vo of the company's inventory was shipped outside Mississippi.

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