BPD
JANUARY 2016
Building Products Digest
INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS
2016: THE EXPERTS LOOK AT THE YEAR AHEAD • SPOTLIGHT ON SOUTHERN PINE
BPD
January 2016
Volume 34 Number 11
Building Products Digest
BPD
Building Products Digest www.building-products.com
A publication of 526 Media Group, Inc.
151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626
President/Publisher Patrick Adams padams@building-products.com Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes David Cutler Editor/Production Manager David Koenig david@building-products.com Associate Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen Advertising Sales Manager Chuck Casey chuck@building-products.com
Special Features 9 MARGIN BUILDERS
DEALERS TRANSFORM THEIR INTO SIDING SHOWCASES
In Every Issue 6 ACROSS THE BOARD
EXTERIORS
30 OLSEN ON SALES
10 COMPETITIVE INTELLIGENCE
32 EVANGELIST MARKETING
WHEN LOCAL LUMBERYARD CLOSES, CONTRACTOR FILLS THE VOID
44 MOVERS & SHAKERS
12 PRODUCT SPOTLIGHT
47 NEW PRODUCTS
RESILIENT SOUTHERN PINE INDUSTRY MARCHES ON
51 ASSOCIATION UPDATE
15 SPECIAL FOCUS: THE YEAR AHEAD
52 IN MEMORIAM
INDUSTRY EXPERTS SIZE UP WHAT 2016 HOLDS FOR: • NEW HOME CONSTRUCTION • ENGINEERED WOOD PRODUCTS • WINDOWS & DOORS • OUTDOOR LIVING • TECHNOLOGY • BUSINESS PLANNING
34 NAWLA–THINKING AHEAD
52 APP WATCH 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 53 ADVERTISERS INDEX
A NEW PERSPECTIVE ON CONSOLIDATION IN THE LUMBER INDUSTRY
54 FLASHBACK
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BUILDING PRODUCTS DIGEST is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626, (714) 486-2735, Fax 714-486-2745, www.building-products.com, by 526 Media Group, Inc. (a California Corporation). It is an independently owned publication for building products retailers and wholesale distributors in 37 states East of the Rockies. Copyright®2016 by 526 Media Group, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. BPD reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.
ACROSS the Board By Patrick Adams
Free time is dangerous
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NYONE WHO KNOWS me knows that it’s dangerous for me to have “free time.” I’m jealous of those people who can take relaxing vacations, “unplug,” and recharge. I, on the other hand, just get anxious when I don’t have a huge list of things to do. During a much-too-long free moment over the holidays, I got to thinking about the “new year” and how we plan our lives and businesses based on this calendar. I just wrapped up my first year in this industry. This business, however, is entering its 94th year, and this is where my free time led to “dangerous” deep thought. Ninety-four years! While it’s more common in this industry, it’s become far too rare for a business to stay around this long. What kept my mind busy was this: in business school we had to write business plans. Countless times in my career, I’ve been asked to draft one-, three-, and five-year plans. Strategic Plans and Turn-around Plans. Tactical Plans, Exit Plans, and Acquisition Plans. But consider this—what would a “100-year plan” look like? If you were asked to start a company where the primary objective was to be in business a century from now, where would you start? How would it influence your strategy and how would that be different from any other plan? I’ve been blessed to have a very exciting and broad career where I’ve been exposed to a lot of different companies. Here’s what I think: I think that when you cannot separate between the “personal you” and the “business you,” you’re on the right track to staying in business for a long
time. I’ve been around many decent people who, in their business lives, do questionable things for questionable reasons—to make a goal, to impress the boss, or to just get over that next hurdle. My 100-year business plan would go something like this: Treat your customers as if they were your lifelong friends. Do the very best that you’re capable of and deliver the very best product or service that you can envision. Always under-promise and over-deliver. Help everyone that you can, even before they have to ask for help. Constantly look to remain flexible, to learn something new and to listen more than you speak. Search for ways to reinvent your business and provide new things to your customers before they know they need them. View it as your job to serve your industry and customers. If I included any of these items on a plan in school or with one of my employers, I would have been immediately booted out. These things cannot be measured on a spreadsheet. You can’t tell a board when or how this will boost profits. Doing these things do not guarantee that you will be in business 100 years from now; there are countless other variables. However, I will argue that if you don’t do these things, the chances that you stay in business at all are very slim. It’s not because the calendar says it’s a new year that my first year—or the company’s 94th year—weighs heavy on me; it weighs on me every minute of every day because I’m fortunate enough to be one of those guys who doesn’t do well with free time on my hands. I enjoy working, doing, helping and serving. I care about my customers like they are my friends and my employees like my family. I want this business to be around another 94 years so that my 5-year-old, and her 5-year-old someday all have something special to steward should they want to! Maybe that’s the real secret to the 100-year plan—it has to be measured by things that a spreadsheet just wasn’t built for. I hope everyone had a wonderful holiday season, whether it was spent working, relaxing or pondering the next 100 years! Happy New Year and may 2016 bring you the very best that life has to offer! “Although no one can go back and make a brand new start, anyone can start from now and make a brand new ending.” ~ Carl Bard Patrick S. Adams Publisher/President padams@building-products.com
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January 2016
Building-Products.com
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MARGIN Builders Siding Showcases
Dealers remake exteriors into siding displays
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S AN INCENTIVE and loyalty builder for new stocking dealers, Novik has launched a Dealer Beautification Program that revitalizes dealers’ facilities and storefronts, while creating a living testament to the natural beauty and versatility of its lowmaintenance shake and stone products. The most recent was the first step into entering the siding category for Glassboro Lumber, Glassboro, N.J. “The new look is creating a lot of buzz—it’s a high traffic area and everyone is talking about how great it looks and wants to know more about the product,” said co-owner Jerad Villecco. “We haven’t been in the vinyl siding category before, but this is more of a premium, one-of-a-kind product line that offers the luxury of traditional materials, with very easy installation.” A few months prior, Matthews & Fields Lumber Supply, Rochester, N.Y., transformed the exterior of its the Henrietta, N.Y., showroom of family business since 1896. “Our facility was in need of a facelift and Novik has the beautiful products that transformed our exterior,” said co-owner Doug Fields. “Now we can actually show our customers exactly how the products will look installed—right on our own building!” To participate, Novik stocking dealers simply order 20 squares of shake or stone (a square is a 10x10-ft. section) and the shake/stone products can be mixed and matched. For the initial 20 square order, Novik will donate up to 10 squares of material to update the retailer’s building. Since launching last spring, the
Building-Products.com
IT TOOK ONE DAY for contractors to replace deteriorated fiber cement facade at Matthews & Fields Lumber Supply, Henrietta, N.Y., with NovikShake rough sawn 8-ft. shake and NovikStone dry stack stone, donated by the vendor.
program has allowed 15 dealers so far to renovate their facilities, including Allied, Atlantic, CYR Lumber, East Islip Lumber, Lyon & Billard, MidCape Lumber, Moynihan Lumber, O.D. Greene, Sider Lumber, and United Building Supply in the Northeast, Tart Lumber in Virginia, and Carter Lumber’s branch in Akron, Oh., which invited customers to view the makeover in action during a BBQ event.
The program will continue this year and expand into Canada. “Many of these buildings have been in families for 75 or even 100 years and could use some exterior upgrades,” said Ralph Bruno, president of Novik Sales Corp. “This is a great way to show off the natural, rich looks of NovikShake and NovikStone, while revitalizing the dealer’s facility and giving them a realistic, life-size display.”
January 2016
Building Products Digest
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COMPETITIVE Intelligence By Carla Waldemar
Sticks and stones will build your yard
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TEVE DOUGLAS entered the industry back in the Eighties as manager of Copeland Lumber’s Yerington, Nv., lumberyard. Three years ago he bought the yard he used to run. Big deal. Well, it kind of is, when you trace the trajectory of Steve’s career between those points. He left the Yerington outpost to manage the Copeland yard in Carson City until, with changes percolating in the corporation, he decided it wasn’t fun anymore.
“So I jumped to the other side of the counter and became a general contractor,” he relates. After securing his license, he launched Top Notch Construction because he sensed “a good opportunity. Nevada was booming back then, and Copeland was making changes.” Fast forward to 2014 when, as he continues the tale, “I felt burned out as a general contractor—the same old, same old for 25 years.” Meanwhile, the Yerington store, which had served as site of a lumberyard for nearly 100 years (most recently as
LUMBERMAN-TURNED-CONTRACTOR Steve Douglas jumped back behind the contractor counter when he realized the small town of Yerington, Nv., desperately needed another lumberyard.
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STICKS & STONES was launched by Douglas with yard foreman Mark Spurlock, at right.
Home Lumber), was clogged with cobwebs; it had stood vacant for three years. That left Valley Building Supply as the only yard left in the mountain town of 3,500—and Valley was calling it a day after a 50-year run in the business. This meant Steve, and contractors like him in Yerington and the neighboring valley (population close to 9,000), would have to make a 100-mile roundtrip journey every time they needed so much as a roofing nail or plank of pine. “The contractor business was just barely hanging on here, in the most economically-depressed county in the country,” he tells a reporter. “The trades were losing people—sheet rockers, roofers, carpenters. But I thought, ‘Well, somebody has to supply material to those who are left. Here’s an opportunity for sales and to support their work.’” Sounded better than Top Notch’s prospects at that point, so Steve stepped up and bought the very yard where he’d first learned to love the industry. And while nostalgia for one’s roots is lovely, it won’t put bacon on the table. Steve is a businessman, not a philanthropist, so he’d done his homework. He saw local home improvements still going on: folks in town and the surrounding farming community were still remodeling, doing additions, adding garages, decks and storage sheds, and sick of driving to the far-off box. Mines and dairies in the region were still calling for rebar, cement blocks, whathave-you. And even the local cadre of DIYers were grateful. “Homeowners are notoriously price-conscious, willing to drive for miles to save a dollar,” he laughs, “but when they realized the boxes couldn’t answer their questions, couldn’t deliver service—they returned to me.” Steve set about to remodel the aging structure (last refurbished following a fire in the Forties), adding new offices and bathrooms, clean coats of paint, and brand-new signage. Calling on his experience as a contractor, he could foresee what items were likely to be in demand. “I knew Building-Products.com
the essentials. I made a priority list to get started, to get a cash flow. We have all the basics—rebar, cement blocks, framing, siding, sheeting, hardwood—but not all the items that would take a $5 million investment. I didn’t take out any bank loans, no big debt load. Instead, I’m adding new SKUs week by week—more trim, doors, hardwood. It can be frustrating at times for customers,” he admits, “but they’re patient and understanding if I have to say, ‘by Wednesday.’ “That way we keep the doors open, we keep growing, keep adding more inventory, and business keeps getting better month after month.” Right now, that brisk business is driven by the area’s contractors because, as Steve acknowledges, “They appreciate my knowledge. I ask questions and let them know if there’s a better way of doing something. You don’t find that at a big box. Plus, if a homeowner wants something installed, I refer the business to those pros. I don’t want to do it myself and step on anyone’s toes; I’d rather sell product.” Marketing guru? That’s Steve. “I know everybody in town, I’ve been here 30 years, and they’re tickled pink to have a local supplier again. Oh, I do some radio ads and improved the signage, plus we have a great location on Main Street with high visibility. But it’s mostly word of mouth: They come to me.” High marks for customer service, too. “They walk in and right away, we greet them, ask what they need. Out in the yard, the yard guy approaches them and loads them up. We’ve added sheds, so now all the lumber is covered, too. And we deliver with a truck and a forklift”—big-ticket items, which required a significant handful of dollars but are paying their way in customer gratitude and loyalty. Competition? Sure—namely Meek’s. “If I’d have left the door open [when the town lost its last lumberyard], they’d probably have come in,” Steve assesses. Instead, he jumped at the chance to switch hats once again and jump back over the counter, with no regrets. “I’ve got the local pro business tied up,” he claims—“everything in two, three valleys.” Plus he hears rumbles of new activity in copper and gold mines on the drawing board—“an opportunity for a boom,” he notes. And, talk about sheer luck (Steve admits he didn’t see this coming): A Tesla factory is slated to be built just down the superhighway—“the biggest factory In. The. World. And other businesses are coming in—distribution centers for Wal-Mart and Amazon—on a new road coming through. This just fell into my lap!” he’s earned his chance to crow. So, count on Sticks & Stones to grow. He’s already got expansion plans “as cash flow, sales, and new construction allows,” its owner states. Oh, yeah: He’s got another driving motive, too: two sons in college. Plus, he downright likes the work. And the town likes him. “I hate to say it, but when the other yards closed, it was a good lesson for the community: Support local businesses rather than lose them and have to drive a hundred miles. Loyalty pays off.”
Carla Waldemar cwaldemar@comcast.net January 2016
Building Products Digest
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PRODUCT Spotlight By Southern Forest Products Association
Resilient southern pine industry marches on
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change have blown over construction markets the last two years as homebuilding fashions a comeback. Contractors are finding ways to finance new projects and demographics are providing a new home-buying audience, sparking sales. Certainly, some quarters last year were better than others when it comes to lumber sales and overall construction activity. That’s what a recovery often means—there will be bumps along the road. Through it all, the southern pine lumber industry has remained resilient, providing the materials builders need to meet homebuyers’ demands. When it comes to value and versatility, southern pine lumber has the properties to succeed in most any application. Consider every room in the house: there’s a southern pine product available to enhance every space, structurally and in terms of appearance. Readily available in a range of sizes, grades and patterns, southern pine materials meet the demands of most any construction project. What makes southern pine lumber a builder favorite? Consider its dependable strength, exceptional treatability and attractive appearance, for starters. Lumber dealers and distributors know that southern pine products deliver for HE WINDS OF
THE STRENGTH of southern pine lumber is well suited for the construction of elevated floor systems.
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their customers, and that the Southern Forest Products Association supports them with the sales help they need, providing materials to help them generate more southern pine sales.
SFPA.org: Lumber’s 411
Need the latest lumber information? SFPA has developed a family of websites, delivering information that helps steer customers your way. Start with dialing up a visit to www.SFPA.org, your gateway to stay connected to the latest product information. Dealers can take a tour of SFPA’s premiere product promotion site, www.SouthernPine.com, and find everything—span tables, design values, sample grade marks, even do-it-yourself outdoor project plans. With a visit to the Publications page, dealers discover SFPA’s Lumber Library, a collection of helpful booklets and construction guides that they can use to educate themselves, their sales team and their customers about the proper selection and use of southern pine materials. All titles are available as free PDF downloads.
Superior Floor Systems
Builders know that southern pine lumber’s strength and stiffness is comparable to other softwood species used in residential and light commercial construction. And users have many product options available, including visually graded dimension lumber and an increasing supply of mechanically graded lumber, such as Machine Stress Rated (MSR) and Machine Evaluated Lumber (MEL). Those new design values that became effective almost three years ago are now part of the builder’s and code official’s vernacular. Southern pine’s excellent fastener-holding ability is just one more advantage, especially when considering critical connections and fewer nail pops in the drywall. Recent years have brought global warming and climate change to the nation’s headlines. The great majority of America’s population lives within close proximity of some kind of waterfront. Super storms have pounding coastal areas with hurricane-force winds and high water. The need for elevating the home has become a favored feature of new construction. And southern pine floor joists fill the bill. A variety of widths and long lengths provide the structural integrity a properly designed storm-resistant structure Building-Products.com
needs. Southern pine materials are the builder’s traditional preference, not requiring special tools or a crew trained to use them. Memories of natural disasters Katrina and Rita are now more than 10 years old. Recently, Louisiana State University hosted an “Elevation Forum” to address the question: “How are we doing raising houses?” Methods differ widely for providing safe, cost-effective housing in many flood-prone areas of the state, but the consensus is that wood remains the preferred material for elevated floor systems. And homegrown southern pine lumber is available to meet the needs of contractors getting back to a full schedule of new homes to build. SFPA provides the resources dealers and builders alike need to better understand the benefits of building elevated homes. At the heart of each is a sound floor system. Several options exist for the preferred foundation system, including treated Southern Pine posts and piling. SFPA’s dedicated website, www.RaisedFloorLiving.com, is conveniently divided into two sections—one for homeowners to understand the benefits of an elevated home, and one for building professionals explaining construction methods and common practices. In many markets, dealers can potentially boost their lumber sales with a thorough understanding of what’s involved when building off grade. In deference to the concrete slab, dealers can increase the typical lumber framing package by one third when including a wood floor system. Beyond flood-prone areas, a sloping lot can present additional challenges for building a new home. Expensive fill may create more drainage problems across the property and for the neighbors. An elevated wood floor system is often the cost-effective solution. Building with both closed and ventilated crawlspace options are detailed on SFPA’s website, promoting improved energy efficiency and more comfortable living spaces for a new home. Dealers can understand the options builders have with versatile southern pine materials and conventional construction techniques. All it takes is a little homework, and SFPA provides comprehensive resources online, available 24 hours a day.
Treated SP: Tops Outside
Building outdoors? Southern pine materials can be pressure treated to resist decay and termite attack. In terms of value, treated SP outperforms composites and other nonwood alternatives for projects exposed to the elements. Treated southern pine is also suitable where conditions warrant additional protection from excessive moisture. Dealers need to keep that selling point in mind when a builder wants some value-added protection for framing the wet-use areas of a new home—kitchens and bathrooms surrounded by plumbing. SFPA recently updated the 2014 edition of its popular booklet “Pressure-Treated Southern Pine,” enhancing its listings of commonly used preservatives. This 24-page guide provides information to assist dealers and distributors with the proper specification and use of pressure treated southern pine materials. A copy is now available as a free PDF download from the Publications page of www.SouthernPine.com. Also included in this helpful guide are tables listing common preservatives and retentions by product and end use. Specification guidelines are included, along with sections covering fasteners and connectors, design values, and proper storage, among other topics. Two pages are devoted Building-Products.com
USING MATERIAL treated to the proper preservative retention level will help assure long-term performance of treated southern pine lumber.
to eight primary applications for treated SP, with references to helpful SFPA websites and related publications. Also, SFPA has available a pocket span card for pressure treated southern pine dimension lumber. Three convenient tables list spans for deck joists and floor framing for common sizes—2x6 through 2x12—four visual grades and three on-center spacings. Cards can be ordered from the Publications page of www.SouthernPine.com.
Use Lumber Treated for Ground Contact
The two most common service conditions for pressuretreated southern pine lumber are Above Ground and Ground Contact. It’s important that lumber dealers understand that the term “Ground Contact” also includes contact with fresh water. Specifying the proper end-use application is very important for long-term performance because higher preservative retention levels are typically required for Ground Contact when compared to products treated for Above Ground uses. In addition, different preservative formulations may be used for Above Ground as compared to Ground Contact. When building outdoors, the most common misapplications occur when lumber treated for Above Ground Use Only is used where the actual service condition simulates a Ground Contact/Fresh Water end use. For longer-term performance, dealers should recommend Ground Contact for applications including: • Deck joists and beams in close proximity to the ground • Deck decking, joists and beams subject to frequent January 2016
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wetting from moisture sources such as hot tubs or air-conditioning units • Stair stringers in ground contact or in close proximity to the ground • Fresh water dock platforms and fresh water pier joists and beams subject to water immersion or frequent wetting from wind, waves, water-level changes or other factors • Walkway and boardwalk decking, joists and beams in close proximity to the ground or subject to water immersion or frequent wetting SFPA’s online information and publications are handy references for your sales team.
SP Indoors: Like the Look
Every room in the house has a floor, walls and a ceiling. Southern pine flooring and specialty patterns covers them all! Architects and interior designers appreciate the distinctive grain and profiles available when selecting southern pine materials. Beyond product selection, knowing tips for proper installation, finishing and maintenance can help dealers finalize the sale. That’s where SFPA comes in. When it comes to flooring, SFPA’s “Southern Pine Flooring” guide delivers 20 pages of information, from choosing a grade and size of flooring, to proper installation, finishing and how to maintain it for years of attractive service. Dealers can refer to SFPA’s “Southern Pine Patterns,” a 12-page pictorial guide to wall paneling and ceiling choices to enhance any décor. Both publications are available as a free PDF download from www.SouthernPine.com.
SOUTHERN PINE patterns—1x4 double-beaded ceiling material and T&G treated porch flooring—add a decorator’s touch to this custom home.
Product Locator Available
Still can’t find it? Many projects may require a southern pine item only available by special order. Chances are good dealers and distributors can source those hard-to-find items among the listings on SFPA’s online Product Locator. It’s a handy, time-saving tool and just a click away from the homepage of www.SouthernPine.com. More than 400 product listings are here. A quick search and dealers are directed right to the manufacturers’ contact information. Conduct your search by state and better pinpoint nearby manufacturers. Dealers and distributors ready to buy southern pine lumber can fill out the Lumber Purchase Inquiry form, located right on the homepage of www.SouthernPine.com. Once submitted, the information is transmitted to SFPA and relayed to its member producers. Here’s a very convenient way to get connected with a nearby supplier of quality products.
At SFPA, Service Matters
INDOORS, southern pine flooring and 1x6 V-groove paneling add warmth and beauty to any room in the house.
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Since the association was founded in 1915, SFPA’s motto remains SERVICE. As the association launches into its second century, it continues to conduct a variety of promotional programs to assist lumber suppliers and building professionals everywhere. Do associations matter to lumber dealers and distributors? Indeed they do. By offering its educational and promotional resources to dealers and distributors across the country, SFPA helps assure the long-term success of the Southern Pine lumber trade as construction markets continue to rebound and prosper. Remember, complete information about SFPA programs and services is available at www.SFPA.org. Building-Products.com
BPD
Building Products Digest
INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS
SPECIAL SECTION: WHAT INDUSTRY EXPERTS FORECAST FOR THE NEW YEAR
2016
THE YEAR AHEAD
David Crowe, NAHB, on
The Year Ahead in
Housing Recovery quickens, but challenges remain
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TEADY EMPLOYMENT, economic growth, pent-up demand, affordable home prices, and attractive mortgage rates will keep the housing market on a gradual upward trend in 2016. However, persistent headwinds related to shortages of available lots and labor are impeding a more robust recovery. Job formation is the key to this housing recovery. Unlike previous recoveries when housing played a key role in the rebound, this recovery needs more jobs to convince consumers that the recession is over, that they will retain their jobs, their incomes will grow and that their friends and relatives feel that way too. So far, the employment news continues to be good. There are more jobs in the U.S. than ever before at 10% above the last peak. The one caveat is that job growth has been concentrated heavily in the service sector, which tends to pay lower wages than goods producing jobs. As a result, incomes have not grown over the recovery period, although that trend is reversing in the latest reports. Within the housing market, most new homes are sold to current home owners. That has always been true but is more striking today because the first time home buyer is less active in the housing market. The good news is that home equity has nearly doubled since 2011 and now stands at $12.5 trillion. Improved equity provides a down payment for existing home owners to buy a new home. While mortgage interest rates should rise over the nearterm, averaging 4.5% in 2016 and 5.5% in 2017, this is not expected to have an impact on the housing recovery. As the economy gets better, job and wage growth should keep pace. So even though mortgage rates will rise, they will still be low by historical standards and very affordable. Two supply chain headwinds will make housing’s recovery more difficult. Builders cannot find enough skilled labor and developed lots are scarce. In successive NAHB member surveys, 13% of builders said the cost and availability of labor was a significant problem in 2011; that concern jumped to 61% in 2014. About a fifth of builders shared the same concerns regarding lots in 2011; that ratio shot up to 58% in 2014. Rising wages for construction workers will help alleviate the labor shortage. Better access to bank loans will help developers buy and prepare lots. NAHB is projecting 713,000 single-family starts in 2015, up 10% from the 647,000 units produced last year.
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Single-family output is projected to rise an additional 23% in 2016 to 875,000 units. In multifamily, production ran at 354,000 units last year, slightly above the 331,000 level considered normal. Multifamily starts are expected to rise 12% to 396,000 units this year and post a modest 3% decline to 382,000 units in 2016. Residential remodeling activity is forecasted to increase 6.8% in 2015 over last year and rise an additional 6.1% in 2016. Housing market conditions are improving in all regions, but the pace of recovery continues to vary by state and region. It now is really a matter of markets reconnecting to the fundamental drivers, and that is employment. Production is rebounding in all regions, prices are moving up, and new foreclosures are back to more normal levels. Using the 2000-2003 period as a healthy benchmark when single-family starts averaged 1.3 million units on an annual basis, NAHB projects that single-family production, which bottomed out at an average 27% of normal production in early 2009, will climb to 74% of normal by fourth quarter 2016 and to 91% of normal by the end of 2017. Single-family output now stands at 53% of normal activity. Among the hardest hit areas during the downturn, the bubble states—California, Arizona, Nevada and Florida— had the most excessive price and production spikes, while the industrial Midwest experienced problems more related to fundamental economic weakness. The most successful recoveries are happening now in the energy states, including North Dakota, Wyoming, Texas, Montana and Louisiana. Others showing strong employment and housing growth include South Carolina, Utah, Tennessee, Idaho, Oregon and North Carolina. As employment gains become broader, as pent-up demand from existing homeowners and first-time buyers return kicks in, and as more labor becomes available, the recovery will continue. David Crowe is chief economist for the National Association of Home Builders. Reach him via www.nahb.com.
Building-Products.com
Make a Bold Statement with Trim. That Lasts!
KOMA Celuka PVC Trim is Pre-Sanded and Ready to Paint. Dealers and distributors everywhere know KOMAŽ Celuka PVC trim won’t dent, mar or scratch, because it has a harder, more durable surface than any free foam PVC or pine trim. But did you know it’s also the best trim to paint? Here’s why:
Ready to Paint KOMA Celuka PVC is pre-sanded, providing a great bite for any color paint or stain.
Tenacious Paint Adhesion KOMA Celuka won’t rot, split, swell, or release paint in the presence of moisture or a harsh environment.
Looks Like Wood KOMA’s more realistic grain looks like wood, not plastic.
A Division of Kommerling USA
Call 1-800-330-2239 or visit komacelukachallenge.com to learn more.
Joe Elling, APA, on
The Year Ahead in
Engineered Wood 10 EWP trends to look for in 2016
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to play a large role in meeting the demand for new housing for two reasons. First, affordability challenges support continued strength in multifamily construction as the number of renter households increases as the homeownership rate declines. In addition, vacancy rates are near their lowest rate since 1980. Overall segment growth will lead to a steady demand for EWPs by apartment and condominium builders.
remain constant in this dynamic industry of ours, a new year is a good time to look ahead. APA—The Engineered Wood Association has identified 10 trends you should look for that could influence your engineered wood sales in 2016. INCE FEW THINGS
Trend #1 Residential construction will continue to improve. U.S. housing starts through August 2015 were up by 11% for both singleand multifamily construction. We expect starts to land just below 1.3 million units for 2016, and trend up to 1.5 million in 2018-20. This will give us an overall 35% increase between now and then, as stronger employment gains, household growth, and improved consumer confidence contribute to new and existing home sales.
Trend #2 Housing affordability will shift the single- and multifamily mix. Demand for housing is expected to increase but we will see the market mix shift over time, as single-family homeownership rates drop. Young people are delaying home purchases as they pay off historically high levels of student debt. Their projected incomes are unlikely to keep pace with an increase in mortgage payments as interest rates and home prices are expected to rise. In addition, first-time homebuyers continue to struggle to meet strict lending standards. All factors point to continued strength in multifamily construction.
Trend #5 ery in this segment will be frustrated by growing affordability challenges.
Trend #4 Multifamily housing will grow in the near-term, but then slow. With a market share of 35 to 40%, multifamily construction will continue
Nonresidential building shows continued growth for EWP. We saw healthy spending in five commercial building segments in 2015; spending should increase another 7% in 2016, but then trend back to just 2 to 3% by 2020. By the end of the decade, combined spending will be up by 21% from 2015, but still 15% below the 2007-2008 peak.
U.S. Housing Starts
Trend #3 Single-family starts will level off. In the next three to five years, single-family starts should level off to just short of the 1 million mark; recov-
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Value of Nonresidential Construction Put-in-Place, Selected Sectors (Billions 2009$)
Private sector spending was up by 9 to 10% in 2015, with lodging (occupancy rates are at record highs) and office construction (benefitting from low financing costs) leading the way.
Trend #6 Remodeling will continue to recover, but slowly. Dealers could see a few more orders from homeimprovement contractors in 2016, as the repair and remodeling market continues its recovery. We expect growth will range from 2 to 4% through the remainder of the decade.
Trend #7 Labor shortages will continue to challenge builders. A significant number of contractors are reporting labor shortages. Larger firms, particularly those who build more than 250 houses per year, are most impacted. As a result, builders will look for ways to improve their jobsite efficiency, which should lead more to consider using EWPs.
Trend #8 Demand for EWP is expected to grow. Demand for North American-made wood structural panels is projected to grow by 21%. Glulam’s share of the beam and header market dipped slightly this past year in the single-family market, but that decrease was more than offset by growth in multifamily construction, where glulam share grew to more than 12%. LVL use is also rising, partly because of the increasing number of homes built with three or more garages and strength in the multifamily market. I-joist use declined slightly, partially due to lack of familiarity by designers and contractors. We see potential growth opportunity for dealers who help educate their customers on the design and construction advantages of I-joists and other engineered wood products. Building-Products.com
Trend #9 Increasing production will ensure steady supply. Dealers can remain confident that engineered wood product supply will remain healthy. Overall EWP production is forecast to grow by 25 to 33% by 2020. In the near term, production will rise across all product lines in 2016.
Trend #10 APA efforts to support increased knowledge of product use will continue. APA remains committed to educating designers, contractors and consumers about the benefits of engineered wood products. In addition, our member manufacturers continue to provide information to an increasingly sophisticated consumer market. As a result, we expect to see more homeowners demand more from their builders in terms of speedy construction, quiet floors and spacious interiors. As dealers and builders do a better job explaining the benefits of engineered wood products, we think consumers will do a better job of expecting them. Overall, we see good news for 2016. LBM dealers should see stronger sales next year, with continued recovery in single- and multifamily building and growth in lowrise commercial construction. Those dealers that work to promote the benefits of their engineered wood product lines could find additional growth opportunities.
Joe Elling is market research director for APA–The Engineered Wood Association, Tacoma, Wa. Reach him via www.apawood.com.
January 2016
Building Products Digest
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Christine Marvin, Marvin Windows & Doors, on
The Year Ahead in
Windows & Doors More glass, contemporary styles
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ACH YEAR , new trends emerge in the window and door industry, driven by the evolving tastes of homeowners and building owners.
Big Glass for Unobstructed Views For the past few years, there has been a trend toward larger windows and doors with bigger expanses of glass—and we’re expecting an even greater demand for larger products in 2016, largely fueled by a desire for unobstructed views. When it comes to windows, many are opting for larger casement and awning windows. However, this trend is not only about views to the exterior: People are also seeking ways to integrate their internal spaces, such as with pass-through windows that open up spaces between rooms. The need for privacy doesn’t go away at larger sizes, though. There are numerous options for when windows need to be covered. For example, Marvin offers integrated interior shades. They are designed to be part of the window or door, with no visible cords or pulleys. The exact fit means virtually no light bleed, and when not in use, they appear part of the window or door with no protrusion. Contemporary Design The trend toward larger glass reflects a growing interest in contemporary design—and so does the popularity of contemporary colors, accessories and other touches. When it comes to clad colors, we’re seeing people drawn toward colors that complement the simple, clean lines indicative of modern architecture. To meet that need, you may want to consider contemporary clad colors in 2016, such as suede, gunmetal, clay or bronze. More people are also seeking out corner units—such as 90˚ corner windows—for panoramic views and a distinctly contemporary look. Other contemporary design elements to watch for in 2016 are pearlescent exterior finishes, ebony and dark gray exteriors, satin nickel hardware, oil-rubbed bronze, brass hardware, and dark interior stains. In addition to dark stains like these, we also find customers are having the interior of their windows painted a dark custom color to complement their cabinetry, flooring and fixtures. Energy Efficiency It comes as no surprise that we continue seeing a grow-
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ing focus on energy efficiency. Choosing energy-efficient windows can help reduce your utility bills, and it provides the peace of mind that comes with knowing you’re helping the planet by minimizing environmental impact. It also makes homes more comfortable. More and more people are looking to increase the efficiency of their homes and other buildings, by using products with improved performance ratings. In 2016, we also expect an uptick in demand for very efficient homes and other buildings, including growth in “passive” building practices, whose requirements are designed to maintain temperatures with incredibly minimal heating and cooling systems. There’s also a growing trend toward Net Zero homes, which, through thoughtful design, alternative energy sources, and high-quality, energy-efficient products, create just as much energy as they produce and have minimal impact on the environment. Other Features, Colors & Accessories This year will also bring increased focus on unique options that set a home of other building’s windows and doors apart. Many people will be drawn to bold accessories, including copper and gold. People are also seeing windows and doors as integral aspects of home and building design, affecting nearly every room in the house. Putting a personal stamp on the architecture, and being able to choose exactly what is needed for design, performance and energy efficiency is paramount. Homeowners and trade professionals don’t want a cookie cutter fenestration solution. People will also be drawn to innovative features that aren’t necessarily visible to the naked eye but add value to their experience with their windows and homes. We expect continued focus on more innovative and integrated features in the year—and years—to come. Christine Marvin is director of marketing for Marvin Windows & Doors, Warroad, Mn. Reach her via www.marvin.com.
Building-Products.com
Sheryl Isenhour, IBD Outdoor Rooms, on
The Year Ahead in
Outdoor Living The sky’s the limit
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T IS LOOKING like 2016 is going to show a huge growth in the construction industry and the outdoor living areas are growing with it. From what I see, outdoor living areas will soon be a standard for new and remodeled homes. People are becoming more family conscious, which is also contributing to the growth in this arena. The kitchen has always been the heart of the home while the outdoors areas have been mostly for entertaining and relaxation. But now, the best place for families to gather, talk and share a meal are becoming one. More people want outdoor living areas with fully functional kitchens as opposed to just the rolling barbecue cart. What does that mean? It means things like outdoor refrigerators, more attractive and comfortable furniture, and dining options are being utilized. It also means cabinets designed especially for patio/deck use. Lighting for outdoor areas has also evolved, along with a wider range of storage options. Space heating, and music systems will increasingly be incorporated in outdoor rooms, contributing to a more flexible, attractive space for families to entertain. And all of these options at increasingly affordable prices. I think the hottest outdoor appliance this year will be the gas- or wood-fired oven. These are proving to be very useful and somewhat chic additions to the outdoor mix of meal preparation. Again, it’s all about expanding options in ways that not only create lovely and comfortable spaces but also provide expanded options for all kinds of meals. As far as style, while the modern look is always available, the stone finishes are taking more of the lead for the choices in veneer. We are also seeing tendencies toward using bark or wood exteriors for grilling islands, although these will require insulation sleeves around the grills. Nevertheless, they may become one of the more popular new trends in decor we’ve seen in a long time. Also becoming popular in the market is the use of lightweight concrete tops for grill islands. These are much lighter in weight than previous concrete or granite but are still easy to maintain, very attractive, and easier on the budget. Lighting in the outdoor units and on the surrounding deck rails is becoming standard. The emphasis here is on a softer lighting effect that provides useful illumination with-
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out glare. The effect creates a relaxing ambiance for all kinds of casual and formal dining occasions. Fire pits and fireplaces are also showing up more and more in outdoor areas. These have immense appeal for those cool fall days and summer nights when people might ordinarily have chosen to remain inside. Now the warmth and glow of outdoor fire provides an ideal setting for easy conversation long into the evening. In this area it appears that more people are choosing gas over wood for the convenience and safety features. Biofuel burners are also enjoying an upsurge. We continue to see composite decks and railings showing up. These add their own visual appeal while also increasing longevity and diminishing the need for annual maintenance… the best of all worlds. We’re even seeing outdoor bedrooms, baths, and offices enjoying a steady increase in popularity. If you didn’t see that coming, you’re not alone. Pergolas and pavilions are very popular additions to make the outdoor living spaces more stylish, attractive, useful and just plain comfortable. People are doing more timber frame units than the conventional lumber units due to the longevity and more massive look of the structure. So, as you can see, the world of outdoor living is growing in leaps and bounds and in directions that would have been hard to predict even a few years ago. This all means increasing opportunities for everyone in the outdoor living industry. Basically, we seem to be in a time where the options are only limited by one’s imagination. And that is very exciting. You could say, the sky’s the limit. And you would be right.
Sheryl Isenhour is president and master designer at IBD Outdoor Rooms. Reach her at sheryl@ibdodr.com.
Building-Products.com
Matthew Courtney, ECi, on
The Year Ahead in
Technology Trends in the LBMH space
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NUMBER OF trends have developed over the last few years and these are some that have risen to the top for us. There has been a noticeable shift in the way companies handle their software operations. Everyone has heard of the “cloud” and knows that is where business management solutions are headed. As technology becomes more advanced, users are finding it easier to maintain and manage their IT via a hosted solution. ECi, for example, has been working with Softlayer, an IBM company that pro-
ACTIVITIES WORKFLOW
vides secure, high-availability hardware and facilities along with high-performance network bandwidth that we can then offer to our customers. This environment is a big change from on-site servers and equipment, but the payoff is fantastic. If a business owner is looking for a cost-effective system that is always up to date and allows faster deployment, a cloud solution may be something to consider. Utilizing Activities Workflow has been another ongoing trend that improves dealer efficiency. This provides a way for individuals to look at the business data that really matters, all in one place, with the ability to drill down to learn more. For example, a purchasing manager might want to have separate lists— POs that have been created but not placed with the vendors, un-received POs past their due date, new special orders, etc.—to save time and money. Applying a workflow can really get the important things in front of that manager and allow drill down for detail if it’s needed. Across all industries, efficiency is certainly an important trend that is not going away! Another software feature that is being used more widely is the ability to find non-barcoded items by using item list images. Typically items have barcodes but if it does not scan or the barcode is damaged it can be exasperating. Having layers of category images within the system is a huge bonus because it allows for drilling down (for example, Hardware/Power Tools/Cordless/Drills/Makita) to pick the correct item from the images on the screen. These trends all point to streamlining the workflow. Streamlining processes not only helps save time and money but provides a better experience for the end user— the shopper. The ability to get them into the store, find the products they need and then provide a quick, easy, enjoyable experience during shopping is the main goal. Anything that can improve that process will be noticed. Matthew Courtney is marketing program mgr.-LBMH Division for ECi Software Solutions. Reach him at mcourtney@ecisolutions.com.
IMAGE LISTS
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EXHIBIT SALES ONGOING AT THIS TIME FOR THE 2016 BUYING SHOW! Contact Craig@lat.org for available booth space. LAT MEMBER dealers ONLY will receive the Buying Show Deals in advance.
Join Now! Find 2016 dues forms and information at www.lat.org
Scott Simpson, BlueTarp, on
The Year Ahead in
Business Planning Steps to get your house in order
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FTER MORE THAN five years of steady recovery, there are some macro-economic signs that suggest the next recession may arrive in 2017. Whether it comes sooner or later, it’s no secret that we work in a cyclical industry. Just as you would prepare for hurricane season long before a storm hits, it is time for LBM dealers to prepare for an eventual downturn. The main objective is simple: Take prudent steps now to take the downside of a market contraction “off the table.” The reason? Businesses that thrived through the last downturn took protective steps in these following categories: Receivables. Clean up your accounts receivable. The delinquent or late accounts that ultimately end up paying in a strong economy are likely to quickly turn into significant bad debt losses in a downturn. Make sure you are thoughtfully controlling how exposed you are. This means holding the line on giving more credit to your customers with delinquent balances:
Manage Your Bank Relationship Early
By the time you recognize you have a risk problem, it’s probably too late to address it in the eyes of a lender. Just as you can’t buy hurricane insurance the day before the storm hits, you can’t turn to bankers as the downturn hits, expecting them to take on a risky client. Here are some steps to take now: • Secure access to the cash you will need in the downturn by taking a larger credit line with your bank. In fact, take all that is offered, or can be arranged. • Develop a long-term relationship with your banker. • Because friendship can only go so far, be prepared to present your collateral so the bank sees there is back-up. • Make banks compete for you as a client. Demonstrate you are a business that is stable, well-run, and profitable. • Know how your bank’s lending approach will change in the event of an economic downturn. • Outline programs you might put in place if you’re cash constricted. Do you really need that new hire, rack system, or truck? Instead, try to preserve cash and protect liquidity. • Review the various covenants that are in place with your line of credit. Be aware when you may “trip” one.
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• Require that all customers pay down or entirely clean up delinquencies. If this is a change in your practices and the customer looks at you askance, point out that clear balances preserve your own ability to serve customers with good inventories and adequate staffing for customer service. • Appraise which customers should have restricted credit, and initiate a conversation with them to explain why you’re changing the account status. It’s only fair that they should pay their bills, so that you can pay yours; there is no reason for you to assume the risk of your worst customers. • Appraise which customers should be put on COD now and initiate a similar conversation about the status change. But make no mistake, you must move to COD for customers who are at risk for going belly-up and sticking you with the bill. Credit management. Bring in a credit management company that will fund you upfront for your sales and protect you from credit risk. In a downturn you’ll highly value not “being the bank,” especially having the increased cash flow and not selling scared in a recession. Credit insurance. Consider obtaining credit insurance for those customer accounts that represent a disproportionate percent of your business. If you have a small subset of customers whose failure to pay their bills would do a meaningful harm to your business, the price of credit insurance is a small price to pay to hedge that downside risk. Credit monitoring. Sign up for credit monitoring services. Pull credit reports three times a year on customers, with a special focus on those that are the most risky. The cost is minimal, and a business credit report can alert you to leading indicators of potential business failures. This gives you enough lead time to address any delinquent balances before a customer bankruptcy locks up his accounts, and you end up getting pennies on the dollar for what you are owed.
Scott Simpson is president and CEO of BlueTarp Financial. Reach him via www.bluetarp.com.
Building-Products.com
BMC Finalizes Merger with Stock
Stock Building Supply, Raleigh, N.C., and Building Materials Holding Corp., Atlanta, Ga., have completed their merger, creating Atlanta-based BMC Stock Holdings. For now, the new company will maintain both BMC and Stock brands, serving 42 metropolitan areas in 17 states, principally in the West and South. The combined company’s common stock will trade on the NASDAQ Exchange under the ticker symbol “STCK.” BMC’s Peter Alexander will serve as president and CEO of BMC Stock, with Stock’s Jim Major as executive VP, chief financial officer, and treasurer. The board will include five former BMC directors and three continuing Stock directors, and be led by BMC’s David Bullock as chairman.
Charleston Lumberyard Lays Ground Work for Possible Move
Century-old Hughes Lumber is seeking approval to demolish its True Value Hardware store, lumberyard, warehouses and rental operation in Charleston, S.C., to possibly convert the site into a large parking structure. The adjacent property had been a furniture factory for 94 years, but recently closed. The city thinks that it could lure a large national retailer to this property, if it could offer the lumberyard site for parking. Hughes, which has been in the center of Charleston since 1888, has found it increasingly cumbersome to operate downtown, due to recent revitalization efforts. In the late 1990s, it purchased two acres about two miles to the south, in case it ever found itself displaced. Instead of selling its current property, Hughes would prefer a long-term ground lease.
Hood Buys SYP Producer Miles
Hood Industries, Hattiesburg, Ms., has acquired Joe N. Miles & Sons Lumber, which operates two SYP sawmills in Silver Creek, Ms., and Bogalusa, La. The acquisition of 83-year-old Miles Lumber adds strategic capacity to Hood’s existing operations in Waynesboro, Ms., and Metcalf, Ga., and increases the overall product mix available to the combined customer base.
SUPPLIER Briefs Weyerhaeuser is closing its DCs in Naperville, Il.; Pittsburgh, Pa.; St. Paul, Mn.; and Baltimore, Md. Cedar Creek, Oklahoma City, Ok., has completed its acquisition of JW Millwork, Wyoming, Mi., and its DCs in Grand Rapids, Mi.; Kansas City, Mo.; Houston, Tx.; Windsor Locks, Ct.; and Greenville and Manning, S.C. Standard Building Materials, Kansas City, Mo., has been launched by wholesalers Danny Lyons and Jeff Swope. Beacon Roofing Supply, Peabody, Ma., acquired 5unit distributor RCI Roofing Supply Co., Omaha, Ne. Founder Richard Lynch’s sons, Dennis and Todd, will stay on. Interfor’s Georgetown, S.C., sawmill resumed regular operations Nov. 30, after two months of short supply due to severe rain and flooding that made logging in the area difficult. Warren Trask Co. is now wholesaling Blue Star’s Malaysian wood products in the New England region. Beginning this month, Trask’s warehouses in Lakeville, Ma., and Menands, N.Y., will stock the full Blue Star product line, including PEFC-certified dark red meranti decking, S4S boards, stair treads, and porch flooring. Weekes Forest Products , St. Paul, Mn., is now Wild Hog Railing prod-
sales agent and distributor for all ucts in the Midwest.
Badger Corrugating Co., La Crosse, Wi., is now distributing BW Creative Railing Systems’ ProBuilt aluminum railing in the Midwest, particularly Wisconsin, Minnesota, Iowa and northern Illinois. Accsys Technologies, Dallas, Tx., received evaluation report ESR-2825 from ICC, confirming Accoya wood meets code requirements. Quanex Building Products, Houston, Tx., completed its acquisition of cabinet component maker Woodcraft Industries, St. Cloud, Mn. Do it Best Corp. named CertainTeed Gypsum, Malvern, Pa., its 2015 Building Materials Vendor of the Year. CertainTeed has also become the first gypsum manufacturer to offer Environmental Product Declarations (EPDs) and Health Product Declarations (HPDs) for drywall products. Eastern Engineered Wood Products, Bethlehem, Pa., received a Business of the Year award from Lehigh Valley Business. 28
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Building-Products.com
Orgill, Memphis, Tn., begins construction early this year on a new $15 million, 100,000-sq. ft. world headquarters in nearby Collierville, Tn. The company forecasts fourth quarter 2017 as move-in time for the new facility, which suppors Orgill’s six North American distribution centers.
The Swindells plan to do some major expansion to the store’s interior, perhaps displaying cabinets and other larger items. In acquiring Ross, the Swindells purchased a real estate package that also includes the store’s warehouses, a building next door harboring another business, and a parcel of land across from the warehouses.
Texas Yard Changes Hands
Biewer Plans Southern Mill
Orgill Building New HQ
A lengthy run ended as of Nov. 23, when Ross Lumber, Houston, Tx., owners announced retirement. Jimmy and Alicia Swindell have assumed ownership of the iconic downtown Houston business, and won’t be changing its name. Kaga Ross founded the business in 1932, and Ross Lumber was owned and operated by members of the same family for more than 80 years.
Biewer Lumber, St. Clair, Mi., will expand from the Midwest into the South, by building a state-of-the-art sawmill in Newton, Ms. Construction will begin in the first
quarter of 2016, with mill production forecast for early 2017. Biewer operates four sawmills and three treating/distribution centers.
Minnesota Do it Best Closes
After 30 years in business, Roger and Joyce Bauer are retiring and as they go, so goes Bauer’s Do it Best Hardware & Rental, New Ulm, Mn. The Bauers hoped to sell off their inventory before Christmas, hold an auction for the rental equipment in early January, and turn over the building to its new tenants, who will move in on Feb. 1.
DEALER Briefs Milton Building Supply , Milton, Vt., is liquidating after 25 years, with the retirement of owner Dan DeGraff. 84 Lumber Co. received zoning board approval to reopen its Riverhead, N.Y., store closed since 2012. Two previous day, Dec. 9, the vacant yard was the site of a “suspicious fire.” Menards is seeking final approval to enclose its garden center and to build a 22,000-sq. ft. lumber warehouse at its Jefferson, Mo., store. Perkins Lumber, St. James, Fl., was destroyed by a Nov. 17 blaze of undetermined origin. Carter Lumber , Oberlin, Oh., lost a warehouse in a Dec. 9 fire. Gypsum Management & Supply acquired 25-year-old wallboard distributor Badgerland Supply and its five locations in Wisconsin and one in Illinois.
Olsen’s Ace Hardware & Garden Center, Slingerlands, N.Y., was acquired by Robinson Ace Hardware, Guilderland, N.Y., Jan. 1,
and is taking the Robinson name. Robinson’s president Bill Swartz and executive VP Judd Robinson will switch titles at the new location.
Building-Products.com
January 2016
Building Products Digest
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OLSEN On Sales By James Olsen
Full disclosure selling eighty percent share their information. It helps me help you. Twenty percent are a little more guarded. So…” and start asking your FDS questions again.
When to Use Full Disclosure Selling
H
get close to our customers? What do we talk to them about? How do we get more of their business? How do we block out our competition? The answer is Full Disclosure Selling. FDS is a series of questions we ask our customers throughout our interactions with them. We don’t ask these questions ALL AT ONCE; it is not an interrogation. There are many “Y’s in the road” where we use the questions of Full Disclosure Selling to get in sync with our customer’s buying pattern. Once we are in sync with all of our customers we will be in the “yes/no” vs. “maybe so and I’ll let you know” business. Most sellers spend the majority of their time “chasing” business. The Master Seller gets to the yes/no sooner and more often. Many are world class closers, but the majority of big hitters in sales don’t necessarily close at a higher rate; they are simply in more “closing conversations.” Full Disclosure will do the same for us. OW DO WE
The Seven Questions of Full Disclosure
• Where are you in your buy(ing) cycle? • How much do you have on order? • How much do you have in your warehouse/yard? • Of what you have already bought, how much is already sold, not shipped? • What is your monthly usage of that item? • What is your buy back (restock, replenishment) point? (How low do you let your inventory go before buying again?) • What is your average cost on that item?
Overcoming the Major Objection
Some customers become defensive when we ask FDS questions. “What do you need to know that for? Just get me a price.” Our answers: “Tom, a lot of my customers ask me that. I have a mountain of knowledge about the market and about products. We (my company) do some amazing things for our customers. But all that knowledge and capability are wasted if I don’t understand where you are in your buy cycle. It helps me call you with deals that fit your specific needs, when you need them.” “Susan, I work this way with all my customers. I don’t share the information with anyone. On the contrary; I don’t want anyone but you and me to know about it. About
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Customer: “I don’t need any right now.” At this “Y in the road,” 80% of our competition says, “Well, what are you buying?” This sends the message that they are only there for the order. FDS questions send the message that we want to partner with our customer. Us: “Really, where are you on that item?” Customer: “What do you mean?” Us: “How much of that (2x4 – whatever) do you have on order?” Customer: “Two trucks.” Us: “And on the ground?” Customer: “A truck and a half.” Us: “I’ve got in my notes that you use five trucks a month, so we’re about a truck and a half short, right?” Customer: “I guess so.” Us: “So if I can get another truck at $350/MBF for two weeks out, that should dovetail exactly with your inventory turn. Do you have an order number for that?” Customer: “Put it on my ….” Customer: “Your price is too high.” Us: “Huh… we’ve been selling some awfully competitive accounts at this price. What have you been hearing? (NOT “Where do I need to be?” Geez, please no!) Customer: “In the 350’s.” Us: “Wow. Good number. Did you buy any of that?” Customer: “Yes.” Us: “What’d that do to your average cost?” Customer: “Lowered it some.” Us: “What is your average cost on that now?” Customer: “$353.” Us: “So if I could get you a couple trucks for three weeks out at $349, would you buy them?” FDS gets us in sync with our customers. Each FDS sales call sets up the next. FDS puts us in front of our customers “when the fruit is falling” from the tree. FDS helps us anticipate our customer’s needs and sell them as a true partner. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
EVANGELIST Marketing By Alex Goldfayn
Selling to executive buyers
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HERE ARE DIFFERENT kinds of buyers, from purchasing people to general managers. But one kind of customer can buy more than any other: executive buyers. I’m talking about the CEOs, presidents and principals. These folks are different than all the rest, and so is selling to them. First, how are they different? They don’t have a lot of time, because they’re babysitting—er, managing—large teams. So we have to make our case and demonstrate our value quickly, impressively, and memorably. Although they are in high-level positions, they hate risk. This is ironic, but most executives spend their days trying to not rock the boat. The less attention they bring to themselves, the better. As such, we must demonstrate to them definitively that we are a safe option. They’re being sold to constantly. And because of their position, they are surrounded by “yes people” who tell them what they want to hear all day. Because of this, we must enter the conversation with them as peers. We must walk into the room as equals. With these kinds of problems, why should we sell to executives, then? It’s quite simple really: these kinds of buyers can buy more than anyone else by a wide margin. You’ll generate a lot more revenue focusing your efforts on executive buyers. That’s them. Let’s talk about you. How do you react to these characteristics? How do you sell to executive buyers? Above all else, demonstrate safety: In the sales process, we must show the executive buyer that many people just like them have done business with us, and were much improved in the process. That is, show your executive buyers testimonials and case studies from people in similar positions. “We’ve found that we bring a huge amount of value to CFOs, just look at these testimonials from our customers in your position.” “Here are three testimonials from people like you who have benefited a great deal from working with us.” Remember, they didn’t get to their current position by screwing up or taking unnecessary risks. Show them how safe it is to work with you by showing them all those who came before them. Be a peer, be an equal. If you walk into the executive buyer’s office thinking about the sale, you’ve already lost the business. It’s gone. Why? Because the executives can sense that. You know how you can tell when somebody really needs the business when they sell to us? It’s not an
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advantageous position to sell from ever, and especially not when you’re dealing with somebody in this position. Instead, your main goal for your meeting with the executive buyer should be to help him or her as hard and as impressively as you can. As soon as you can get them to say “I’ve never thought of it that way before,” there’s a great chance this business will be yours. What can help like this? War stories. Examples. Compelling case studies you recount. Interesting customers of yours. Quick thinking that offers a powerful solution to the buyer which you come up with on the spot. Be in the moment. Listen to what they’re saying. Then react with value. Forget that you’re in a sales situation. Think of it as if you’re having a drink with a friend. The approach for selling to executive buyers, now let’s look at finding them. How do you get to executive buyers in the first place? Build a good list. These people are not kept secret. Their names and titles are on websites, LinkedIn and other online databases. Hire somebody to build good lists for you. Send executive value to the list. Periodically, send an article they’ll find helpful. Or a video. Include testimonials from their peers. Feature a case study. Executive value is immediately practical and helpful content wrapped in the safety of examples and endorsements. Aggressively gather referrals from existing executive buyers. Nothing will get you in through the executive’s door faster than a referral from a fellow executive. Ask executives who else they know in a similar position. In general, be bold, be confident, be helpful, be memorable. And have fun, because that’s contagious. These executives need you. – Alex Goldfayn is CEO of revenue growth consulting firm Evangelist Marketing Institute and author of the The Revenue Growth Habit: The Simple Art of Growing Your Business by 15% in 15 Minutes a Day. Visit www.evangelistmktg.com. Alex Goldfayn CEO, Evangelist Marketing Institute www.evangelistmktg.com Building-Products.com
THINKING Ahead By Warren Reeves, Wholesale Wood Products
The name on the door
A little perspective on consolidation in the lumber industry A NOTHER ARTICLE on consolidation?! We all know consolidation has been a hot topic over the past few years, so how is this article different from all the thousands of others that have circulated through industry publications? Because it’s written from the perception of all of us. Four years ago, the company I worked with for 17 years was being bought out. What did this mean? Where would I end up? Would I have to relocate? What would hap-
About NAWLA
NAWLA (North American Wholesale Lumber Association) is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.
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Building Products Digest
pen to all of my peers? The questions came faster than I could ask them. I was assured nothing would change and that all of my co-workers—whom I also considered my friends—would still keep their jobs, and it would be business as usual. (By the way, this will always be the textbook answer during any acquisi-
January 2016
tion.) I’m not really sure what other answer I was expecting. Perhaps something like: “Well, half of you are going to be fired, but don’t worry, it might not be you.” Needless to say, this was an extremely stressful time. I understood the reasoning behind the buyout: Business had been historically low, and the light at the end of the
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A Special Series from North American Wholesale Lumber Association
Why the Increased Consolidation?
Many industries today are dealing with the realities of consolidation for a number of reasons: changing economy, evolving marketplace, advancing technologies. The forest products industry is no different. Here are some of the most common reasons for the consolidation of this industry:
• Access to standing timber • Reduced profit margins • Stricter government regulations • Decreased housing construction
– Source: Great Falls Tribune, State Impact
tunnel looked more like that of a freight train than that of a brighter day. Still, there was something within that said don’t give up. The owners of my company must have felt it too, because at the 11th hour, the deal was nixed. This was my first experience with consolidation. Many of my peers in this industry have coined 2015 as “the year of consolidation,” so I’m not alone in thinking that this might just be the beginning. In the southeastern region of the world (where I reside), I’ve seen pine mills being absorbed on a regular basis. I’ve seen momand-pop lumberyards gobbled up by big chains, and then those big chains gobbled up by even bigger chains! Almost every time I read an industry publication, there’s a news brief about someone I’ve done business with being bought out. From my perspective, not much
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has changed after the transaction. Most of the time, I’m still cutting and receiving POs to and from the same people. So, what does change? Just the name on the door? I don’t think so. For obvious reasons, I can’t divulge names or companies, but I can share what I’ve been told. What changes is internal pride—the pride that employees had working with a “local” company that had employed their parents and their grandparents and so on. That name on the door was the same name on their kids’ baseball jersey. The same name that helped build many communities over the years. My findings are simple: It’s really hard to let go. Does this mean that the new name won’t be better? Of course not; it’s just new. Most people don’t like change; some even fear it. My advice? Embrace the newness and try starting your own traditions. Who knows, they might be better than the past generations who instilled the internal pride to start with. “The one with the most sticks wins the game.” Maybe. Maybe not. It’s probably an obsolete way of thinking, but I still feel that people do business with people. You would be hard pressed to find another industry that still does million-dollar deals based off of a handshake. This is the world we live in. I haven’t stopped doing business with anyone because the name on the door has changed. As long as they still do what they are supposed to do, then they will continue to have my loyalties. I’ve lost countless hours of sleep due to the concern of consolidation. “If the mill I’m buying from gets bought out, I won’t be able to get my material.” Guess what? It has and I still do. “If my biggest customer gets bought by someone that I’m not ‘in
with,’ then we are going to go out of business.” You got it; they have and we’re still here. I can throw out many clichés on why this is, but it’s simple; We’ve proven to be a viable entity to our vendors, as well as our customers, and no matter the circumstance, we’ve put ourselves in a position of need. This is the secret to success, and I’ve given it to you free of charge! The bottom line is this: Consolidation within our industry is going to continue. I can’t give you the answers to when, where or why, but what I can tell you is that you have to make the most out of your situation—no matter what name is on the door. – Warren Reeves is vice president of sales & marketing for Wholesale Wood Products, Dothan, Al. Reach him at (800) 633-0906.
January 2016
Network & Learn
To learn how other leading industry firms are dealing with the challenges that come with industry consolidation, you are encouraged to attend NAWLA’s 2016 Leadership Summit: Where Industry Decision Makers Grow, March 13-15 at the Westin Mission Hills in Palm Springs, Ca. You will build knowledge on relevant management topics and key trends in education sessions and connect with peers through multiple networking events. You will leave with proven best practices, cost-saving measures and new or renewed relationships with customers, prospects and suppliers. Learn more or register at www.nawla.org.
Building Products Digest
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SPECIAL Focus on WWPA
New Safety Data Sheets for wood products
T
HE H AZARD Communication Standard (HCS) (29 CFR 1910. 1200(g)), revised in 2012, requires that the wood product or chemical manufacturer, distributor, or importer provide Safety Data Sheets (SDSs) (formerly MSDSs or Material Safety Data Sheets) for each hazardous chemical (wood dust) to downstream users to communicate information on these hazards. The information contained in the SDS is largely the same as the MSDS, except now SDSs are required to be presented in a consistent user-friendly, 16-section format. The SDS includes information such as the properties of each chemical; the physical, health and environmental health hazards; protective measures; and safety precautions for handling, storing and transporting the chemical. The information contained in the SDS must be in English (although it can be in other languages as well). In addition, OSHA requires that SDS preparers provide specific minimum information as detailed in Appendix D of
29 CFR 1910.1200. SDS preparers may also include additional information in various section(s). Sections 1 through 8 contain general information about the chemical, identification, hazards, composition,
Effective Completion Date
safe handling practices, and emergency control measures (e.g., fire fighting). This information should be helpful to those that need to get the information quickly. Sections 9 through 11 and 16 contain other technical and scientific information, such as physical and chemical properties, stability and reactivity information, toxicological information, exposure control information, and other information including the date of preparation or last revision. The SDS must also state that no applicable information was found when the preparer does not find relevant information for any required element. The SDS must also contain Sections 12 through 15, to be consistent with the U.N. Globally Harmonized System of Classification and Labeling of Chemicals (GHS), but OSHA will not enforce the content of these sections because they concern matters handled by other agencies. The OSHA schedule for SDS is shown below.
Requirements
Who
Dec. 1, 2013
Train employees on the new label elements and safety data sheet (SDS) format.
Employers
June 1, 2015
Compliance with all modified provisions of this final rule. Distributor must not ship containers labeled by the chemical manufacturer or importer unless it is a GHS label.
Chemical manufacturers, importers, distributors, and employers
Dec. 1, 2015
Must not ship containers without a GHS label.
Distributors
June 1, 2016
Update alternative workplace labeling and hazard communication program as necessary and provide additional employee training for newly identified physical or health hazards.
Employers
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January 2016
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January 2016
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SPECIAL Focus on WWPA
By Softwood Export Council
Western softwood exports slip after record gains
A
FTER RECORD EXPORT years in 2013 and 2014, softwood lumber exports in 2015 will see a decrease of nearly 17% from $1.1 billion to $890
2015 Softwood Lumber Exports
2015 Value of Western Species by Destination
Douglas Fir Japan Canada China Mexico Philippines Rest of World
$97,968,745 $30,083,304 $22,448,729 $20,343,970 $10,227,272 $18,856,307
Ponderosa Pine Mexico Canada Pakistan China Japan Rest of World
$36,153,016 $5,894,340 $1,175,642 $1,069,000 $579,946 $1,681,891
Hemlock Canada China Japan Mexico Taiwan Rest of World
$15,137,040 $3,173,694 $3,145,117 $1,819,874 $1,128,007 $1,651,828
Hem-Fir Mix China Korea, South Taiwan Mexico Japan Rest of World
$9,938,722 $3,840,874 $3,333,559 $969,428 $708,228 $1,212,110
Western Red Cedar Canada $16,339,214 China $1,084,450 Netherlands $311,437 India $205,337 Spain $172,800 Rest of World $298,091
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Building Products Digest
million. Forest product industry representatives are not relenting too much as exports in previous years well exceeded expectations. However, the Softwood Export Council and its members remain adamant to servicing its existing markets as well as promoting in new sectors and new markets. Leading the way for western softwood species is Douglas fir with $200 million in exports with Japan accounting for nearly 50% of the market. Ponderosa pine held up very well with its export levels only seeing a slight decrease of $47 million to $46 million thanks to Mexico imports accounting for $36 million dollars, up 26% from 2014. Western hemlock and hem-fir saw drastic decreases of nearly 50% from $100 million in 2015 to 46% million in 2014 due to the downturn of its largest export market of China. Europe, Canada, Chile and New Zealand are the major exporting regions or countries for softwood lumber products into international markets. The U.S. is the seventh largest exporter in most markets but is a dominate supplier in Mexico and Canada. Considering that most international construction uses stone, steel, or concrete in structural applications, and U.S. lumber is heavily “designed” to be used in structures, it is obvious why U.S. production is in limited demand. International market requirements are widely varied by species, sizes, grade requirements, and end use of the materials. Traditional U.S. structural species such as Douglas fir and hemlock are found in many non-structural products. Lower grades of all species, of limited value in structural applications, find a home in crating, pallets, and packaging. U.S. species are used in many remanufacturing and gluing January 2016
facilities, in parts of the world with much lower labor rates, for furniture and millwork components. Wood frame residential construction is mostly limited to North America, Japan and parts of Oceana. Even in those markets, North American framing systems using 38mm x 89mm (2x4) structural members are limited to the U.S., Canada and a small but growing segment in Japan. Japan is the second largest wood frame building in the world. In 2014, there were 490,000 wood frame housing starts in Japan, down 12% from 2013. Only 31% of those were 2x4 construction and the remaining post and beam. The 2x4 market is predominately 90% Canadian SPF as Douglas fir make up the majority of post and beam. The vast majority were traditional Japanese metric post and beam timber construction using metric sizes. Structural framing sizes in Australia and New Zealand use 35mm and 45mm by 90mm and 100mm sizes. However, some U.S. softwood producers are successful in these markets by providing metric-sized lumber to compete with other imported products mainly from Europe and Canada. Moving forward, the U.S. softwood exporting industry is committed to promoting in sectors other than new housing starts such as structural wood applications in public buildings, value added markets in finished goods for the burgeoning DIY and remodeling market as well as components for Japan’s small but returning furniture market. Much of the U.S. softwood exported is for non-structural uses. Interior applications, such as doors, windows, frames, mouldings, flooring, paneling and other millwork, is a prime destinaBuilding-Products.com
tion for both pine and fir species. Furniture parts and glued panels are also a destination for softwood lumber. Western species, such as Douglas fir and hemlock, in the clear and other upper grades, are prized in Europe for wooden window and door parts and frames. Ponderosa and other western pines are used in rustic pine furniture, and for upholstery frames in Mexico, China and Vietnam. U.S. producers are selling both metric and imperial sizes into these markets because much of the stock is ripped and resawn to provide “finished” metric sizes for the local markets. A large portion of exported lower grades in softwoods are used in concrete supports for forming, wailers and posts. Since much of the worldwide structural construction relies on concrete, there is a large demand for formwork materials at all levels. Some world markets require structurally graded materials, some cultures use the material repeatedly, but some see wood as a single use material and aim for a cost competitive disposable supply, and use the remains for fuel or local DIY projects. Western softwood species have found distinct foreign markets based on species and size. For strength, long lengths, and large sections of solid lumber, the Pacific Northwest is the place to go. The Pacific Rim is the leading market for western species and is the leading destination. Japan is now the third largest export market for U.S. softwood lumber, but still the largest market for U.S.-produced Douglas fir. However, with the rise in the consumption tax in 2014, the Japanese market for softwood lumber is down over 30% from a near record year in 2013. On the horizon is another increase in the consumption tax in 2016 but hopefully, that increase will not apply to housing starts. With the majority of tax revenue in Japan geared toward the growing number of retirees, it may be a few more years before major tax reform is applied to the construction sector. China became the number one market for U.S. softwoods with rapid growth over the past five years. Still the largest market for U.S. softwood exports not including Canada, exports to China dropped nearly 35% in 2015 from $190 million to $135 million. With the constant government initiatives to curb the economy and reevaluation of the RMB, China’s economy has taken a dramatic downturn. Building-Products.com
However, SEC is monitoring the flow of the wood processing industry in Asia and have already begun researching and promoting in markets that have taken some of this market share such as SE Asia and Mexico. Mexico is now the second largest market for U.S. softwoods, surpassing Japan. Mexico is one of the export markets that have actually seen growth with exports increasing 4% from $160 million to $166 million. Mexico is a low grade pine market, with ponderosa pine the leading known species imported, behind “other softwoods.” Uses include furniture components,
January 2016
pallets, crating and millwork. Douglas fir is also imported for some structural applications along the border. The major competition to U.S. species is radiata pine from Chile. Canada is a perennial top destination for U.S. softwood species, but there is limited data as to how much is transshipped to the Pacific Rim via Vancouver and to Europe via the St. Lawrence, although anecdotal data points to a large percentage. It should be noted that western species such as Douglas fir are used in construction and remanufacturing and components throughout Canada.
Building Products Digest
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SPECIAL Focus on WWPA
By Stephanie Ornelas
Industry mum on stalled softwood trade pact
I
APRIL OF 2006, the governments of Canada and the U.S. reached a tentative agreement in the softwood lumber dispute – a dispute that some may argue is one of the largest and enduring trade disputes between both nations. The conflict was given rise in the early 1980s and its effects are still seen today. After being extended for another two years, the agreement expired October 13, and professionals in the lumber industry are remaining unexpectedly quiet about their thoughts regarding any future arrangement. The heart of the dispute was the claim that the Canadian lumber industry is unfairly subsidized, as most timber in Canada is owned by the provincial governments. The prices charged to harvest the timber were set administratively, rather than through the competitive marketplace, the norm in the U.S. The United States claimed this constituted an unfair subsidy, and is thus subject to U.S. trade remedy laws, where foreign goods benefiting from subsidies can be subject to a countervailing duty tariff, to offset the subsidy and bring the price of the commodity back up to market rates. After years of contentious negotiations, the two sides finally came to an agreement in 2006, putting to rest the long dispute. Since then, the waters had been calm between the two sides. With the SLA hitting its expiration date this past October, some may wonder what could happen next. Building Products Digest reached
who wished to stay annonymous did agree to voice his opinion on the subject, stating, “It’s in the best interest of both sides to establish a floor in the market. The agreement needs an update and the market is in a good position to do so.” He went on to explain the importance of lobbying for more punitive penalties and higher trigger points. “These are all things that need to be
N
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Building Products Digest
out to a number of lumber industry professionals from both the U.S. and Canada to get their opinion on the matter. For now, the industry remains cautious, but hopeful. Zoltan Van Heyningen, executive director of the U.S. Lumber Coalition, spoke on behalf of many lumber professionals: “The two governments are working hard to come to an agreement that will benefit the industry as a whole.” While Van Heyningen stated the U.S. side chooses to remain hush regarding the details of what they hope to see come out of a new agreement, he has affirmed the agreement is outdated, and a fresh approach is something that is necessary. “There is definitely an interest in a new agreement. There was a huge reaction when the agreement expired and it was a reaction that was a testament to the fact that the old agreement was outdated. This needs to be addressed,” he said. One U.S. lumber manufacturer January 2016
weighed out.” Despite the scarce amount of dialogue between industry professionals, both agreed that the process of coming to an agreement will take sometime and neither expect to see an agreement in less than a year. According to Van Heyningen, both Canada and the U.S. could not reach an agreement leading up to the expiration date thus leading to no negations toward a new agreement so far. Canadian companies contacted by BPD similarily declined public comment. Building-Products.com
SPECIAL Focus on WWPA
Improving U.S. housing markets drive lumber demand higher S
INGLE - FAMILY HOME
construction totaled an estimated 589,000 units started through October 2015, up 8.6% year-to-date, based on U.S. Census reports. Meanwhile, multi-family construction (apartments and condos) increased more than 17%. Together, home construction in 2015 will require an additional 1.1 billion bd. ft. (13 BBF in total) compared to 2014. The largest single factor in U.S. lumber consumption, residential repair and remodeling (R&R), is tied directly to existing home sales. Many people begin major remodeling projects with-
We’re growing Colville, WA – Usk, WA – Midway, BC – Eagar, AZ
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Building Products Digest
January 2016
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in a year after purchasing an existing home. The National Association of Realtors reported year-to-date home sales to be an estimated 4.47 million homes, on pace to finish the year about 7% higher than 2014. That increase bodes well for lumber consumption increases due to improvement projects in 2016 and beyond. Lumber consumption in 2015 for home repair and remodeling will be an estimated 18 billion bd. ft. Because the U.S. economic outlook for 2015-2016 is strong, nonhousing lumber markets (commercial and industrial construction, pallets/ packaging, furniture manufacture, etc.) are expected to improve as well. Total lumber consumption is expected to exceed 45 billion bd. ft. in 2015 and increase an additional 6% or more in 2016. Western lumber production was expected to reach 13.9 billion bd. ft. for 2015, according to the Western Wood Products Association. The 2016 forecast for western lumber production is on par with 2015 volumes with a slight increase anticipated as new home construction continues to improve. WWPA represents lumber manufacturers in the 13 western states including Alaska. Based in Portland, Or., it compiles lumber industry statistics and provides business information services to mills. WWPA also delivers quality standards, technical and product support services to the industry.
important aspects of the business. According to Rob Saper, divisional VP supply chain operations for True Value, due to the inability to lease tractors on a seasonal basis and with drivers being tougher to source, they needed a company like Ryder to step in to help better serve their retailers through greater flexibility with access to more resources.
DC Forklift Operator Crushed
A forklift driver at Huttig Building Products, Winter Haven, Fl., suffered fatal injuries after becoming pinned between his stand-up forklift and
metal shelving. Enrique Trevino, 41, suffered the crushing injuries Dec. 11. He was airlifted to a medical center, where he died several hours later.
New Hardware Store in Texas
Minnesota-based hardware chain Northern Tool + Equipment opened a location Dec. 12 in Live Oak, Tx. The store features a 15,000-sq. ft. sales floor, showcasing more than 8,000 products. The chain operates 90+ stores in 19 states.
True Value Takes a Ryder
True Value Co. is in the process of converting its fleet of leased and company-owned vehicles to now include professional drivers, routing, and scheduling services from Ryder Transportation Solutions. Under the agreement, Ryder has begun to manage the transportation services at 10 of True Value’s 12 distribution centers across the country. The transportation giant also plans to provide the hardware chain with access to professional drivers, specialized vehicles, and maintenance. With the driver shortage facing the industry as a whole, it has become increasingly difficult for True Value to recruit its own drivers. The company has said it can leverage Ryder’s expertise in driver recruiting and retention so that it is better able to focus its time and resources on other Building-Products.com
January 2016
Building Products Digest
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MOVERS & Shakers Peter Broderick, ex-Atlantic Timber, has joined the trading team at Woodbrowser, Grantham, N.H. Phillip Murray, ex-BlueLinx, is now Atlanta, Ga., regional sales mgr. for Huber Engineered Woods. Steven Griffin has returned to manage McCoy’s Building Supply, Tomball, Tx. He succeeds Joe Munoz, who is now store mgr. in Rosenberg, Tx. Steve Herzog, ex-Weyerhaeuser, is new to sales at Longleaf Forest Products, Charlotte, N.C. Dan Villarreal is now satellite mgr. for Foxworth-Galbraith Lumber, El Paso, Tx. Steven P. James has been promoted to president and chief executive officer for Frank Miller Lumber, Union City, In. JoEllen Johnston succeeds him as chief financial officer. Hannah Knapp, ex-Britton Lumber, is now with Makita USA, as territory sales rep for Vermont. Dylan Bradshaw has joined the sales force at Magnolia Forest Products, Terry, Ms.
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Building Products Digest
Brian Miller, president, ProVia, Sugarcreek, Oh., has added the title of CEO, with the retirement of Bill Mullet, who founded the company 39 years ago. Mullet will stay on part-time as chairman of the board. Dave Wohlfort, ex-BlueLinx, is now territory mgr. for the Baltimore, Md., area with US Lumber. John Wiggins, ex-Southern Pacific Supply, is door program mgr. Aldo Delgado, ex-Dantzler, is new to Wholesale Building Products, Hollywood, Fl. Becky Mancuso has been named VPmarketing & public relations for 84 Lumber, Eighty Four, Pa. Adam Lindsey, ex-Fairway Building Products, is now AZEK/TimberTech territory channel mgr. for central Pennsylvania with CPG Building Products. Jack Cook, director of commodity research & product development, CME Group, Chicago, Il., has retired after 42 years with CME. Dan Indoe, ex-Continental Building Products, U.S. regional sales mgr. for Maibec.
January 2016
Carlos Furtado, Sawarne Lumber, Vancouver, B.C., has retired after 45 years in the industry, the last 30 with Sawarne. Mark Avery has been promoted to VP of the composite panel business & logistics and Steve Killgore to VP of the solid wood business & marketing for Roseburg Forest Products, Roseburg, Or. The changes create two new business lines—solid wood and composites—by combining the previously independent sales and manufacturing functions for each. Thomas Gennarelli is now director of logistics & planning. Scott Folk, VP of resources, assumes responsibility for Roseburg’s wood chip business and terminal facility. Marci P. Grebstein was promoted to chief marketing officer for Lowe’s Cos., Mooresville, N.C., succeeding Thomas J. Lamb, who has left the company. Erin K. Sellman is now senior vice president of strategy, insights & planning. Garner Robinson, president, Robinson Lumber Co., New Orleans, La., was added to the National Hardwood Lumber Association board of managers.
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Jamie Byrne, ex-Mohawk Industries, has joined Overhead Door Corp., Lewisville, Tx., as VP of sales. Paul G. Mudd was named eastern regional sales mgr. for MAX USA Corp., Mineola, N.Y. Bobby Thomas, T&L Distributing, Houston, Tx., and Buddy Faircloth, Cain & Bultman, Jacksonville, Fl., were presented North American Association of Floor Covering Distributors Lifetime Achievement Awards. Heidi Cronin-Mandell, The Cronin Co., Portland, Or., won this year’s NAFCD Growth Award. Paul Lafrance, celebrity TV host and professional builder, is teaming up with Regal Ideas Inc., Delta, B.C., to launch a series of new products this year. The partnership also includes a series of installation videos, event appearances, social media and website collaborations, national promotions, and the launch of the Regal ideas University and Contractor Certification Programs. Phillip D. Bagg has been arrested following an attempted hold-up of Mungus-Fungus Forest Products, Climax, Nv., report Hugh Mungus and Freddy Fungus.
Building-Products.com
Cedar Creek Opens Midwest Prefinishing Center Cedar Creek, Oklahoma City, Ok., has opened a Paint Technology Center adjacent to its St. Louis area distribution center. Located on the same 33-acre site in Granite City, Il., the fully-automated coating facility is dedicated to painting Cedar Creek’s new line of Summit prefinished siding. The new facility includes two new buildings: a state-ofthe-art paint line production building and an adjacent storage building. The plant recently began production and shipments to the distributor’s seven Midwest distribution centers. Cedar Creek CEO D. Wayne Trousdale stated, “We have been working on this project since our entry into six new Midwest markets in June of 2014 with our Roberts & Dybdahl acquisition. Our new customers told us how important the prefinished siding category is in this market and we responded by building a top-of-theline facility that incorporates the latest in coating technology.” Cedar Creek has partnered with LP SmartSide and PPG as its two key suppliers on the new line. It will stock 25 colors for immediate shipment and
January 2016
NEW COATING facility prefinishes Summit engineered wood siding.
offer a broad custom color palette made possible by its Rexson computerized color mixing system. All Summit siding and trim products offer a 30-year limited warranty.
Building Products Digest
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DMSi Integrates EMV
DMSi Software’s Agility ERP system is now compatible with EMV payment processing. Accurately processing EMV cards will reduce DMSi customers’ liability risk. Under new regulations, businesses that can’t read EMV “smart chips” may be held financially liable for fraudulent purchases. DMSi is among the first in the building materials industry to offer an EMV-compatible POS solution, and brought its first customer live in early November. This success was a joint effort between DMSi and Element Payment Services. “EMV-compatibility is critical for businesses,” said Shelly Price, senior product specialist. “By working diligently with Element, we can now help our customers meet this new standard far ahead of their competitors.”
Annual References Updated
Random Lengths is nearing publication of its updated Big Book forest products directory and Year Book market price reference. At more than 808 pages, the 2016 Big Book includes 3,990 comprehensive company listings, a personnel
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Building Products Digest
DELIVERING KNOWLEDGE: In the inaugural year of its Everwood University, Everwood Treatment Co., Spanish Fort, Al., trained more than 1,000 contractors, homeowners and store employees in 2015, using its mobile training center.
index with more than 15,600 names and company affiliations, and a handy geographic cross reference location index. More than 85% of the listings have changed since the prior year. The 2016 Yearbook provides 11year price histories, composite prices, economic data, production statistics, market activity timelines, and an international section. Both books are available from www.rlpi.com.
January 2016
Retail, Rental Software Joined
ECi Software is integrating two key platforms to streamline operations for customers who offer hardware retail and rental inventory. Rental transactions take place seamlessly with payment and accounting processed within ECi’s RockSolid system, while its Point-of-Rental software handles rental contracts, reservations and returns, all within the RockSolid software.
Building-Products.com
NEW Products
Time-Tracking Software
Size Matters with Deck Screws
Starborn Industries has a shorter, 2” version of its Cap-Tor xd PVC and composite deck screw, to attach PVC and composite decking to rooftop sleeper systems or other applications where standard 2-1/2” or 23/4” screws are too long. It comes with an epoxy-based polymer resin coating in colors to match most popular decking products.
NCheck Bio Attendance 3.0 enables easy time and attendance tracking using fingerprint or face biometrics on Android mobile devices or Windows PCs. Because of its easy mobile and offline/online capabilities, the software provides a way for companies and organizations in the building and construction industries to easily track and manage time and attendance for their remote and on-site workers. The software includes support for remote and traveling workers, shift support/logging, user group reporting, and GPS logging.
NUEROTECHNOLOGY.COM (503) 805-7540
STARBORNINDUSTRIES.COM (800) 596-7747
A New Look with Aged Cedar
Aged Cedar joins the Ply Gem line-up of Woodland Select vinyl fencing, delivering the details of natural wood without the nuisance of annual upkeep. Featuring a realistic variegation with black and gray overtones, Aged Cedar emulates the color and texture of naturally aged, untreated cedar. It is the fifth color addition to Ply Gem’s Woodland Select series, rounding out the collection of Natural Cedar, Redwood, Weathered Cedar, and Chestnut Brown.
The TAB Wrapper Tornado line of orbital stretchwrapping machines from TAB Industries allows products to be fed through its wrapping machinery from a chain, belt, roller or other type of conveyor. The wrap line excels in packaging long products such as doors, beams, bars, pipes, rods and channels and can wrap continuously up to an infinite length, theoretically.
PLYGEM.COM
TABINDUSTIRES.COM
(888) 975-9436
Building-Products.com
Wrapping Hardy Products
(610) 921-0012 January 2016
Building Products Digest
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Natural Finishes The new Deckorators woodgrain cap rail offers a natural-looking finish without the maintenance of wood. The product provides a perfect finishing touch for the Deckorators ALX Pro railing system, and is available in 6- and 8-ft. lengths DECKORATORS.COM
Superior Trim
Restoration Millwork cellular PVC exterior trim by CertainTeed is available in TrueTexture woodgrain and smooth finishes. The trim features UV resistance, it cuts and mills with traditional woodworking tools and fastens with nails or screws. The line of styles includes trim boards, beadboard, full-size sheets, one-piece corners, brickmould, drip cap, and specialty restoration millwork. It can also be heat formed into a variety of architectural shapes. CERTAINTEED.COM (866) 877-6933
Nature-Inspired Openings
Masonite’s Everland doors, inspired by nature are hand finished to accurately capture the grain variation of natural wood. The doors are available in a natural finish and color to meet the desire for an authentic look of wood. The hand-staining process gives variations in its finish, adding depth and the look of natural wood. MASONITE.COM (866) 736-7322
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Building Products Digest
January 2016
Building-Products.com
Jobsite Headseats
Dust, water and shock resistant, Jabra STEEL is a Bluetooth headset for tough environments. The headset has been tested for dust ingress, liquid spills, and high drops onto hard surfaces.
JABRA.COM
Open in Style
Weather Shield has enhanced its Contemporary Collection of windows and doors with a new flush frame design that puts sash and frame on the same plain, minimizing the exterior profile. The traditional shadow-line frame projects about an inch further than the sash and home exterior, adding depth and dimension to a building’s façade. The collection is now offered in push-out and crank-out casement, awning, direct set, and 90˚ corner windows, plus bi-fold, hinged and sliding doors. WEATHERSHEILD.COM (877) 493-3199
Sparkman, Arkansas
Phone: (870) 226-6850 • (870) 678-2277 • Fax: (870) 678-2522 The White Family – Serving the Lumber Industry for Four Generations
High Quality Arkansas Southern Yellow Pine Boards, Pattern Stock and 5/4 Square Edge, Flooring, Beaded Ceiling, 105, 116, 117, 119, 122, 131, 139, 5/4x12 Nosing. Building-Products.com
January 2016
Building Products Digest
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Testing for Safety
Offered are professional clamp meters and multimeters, test kits, receptacle testers, non-contact voltage testers, and accessories.
Klein Tools’ new line of test and measurement tools are made to meet the safety requirements of the industry and the durability demands of the jobsite.
KLEINTOOLS.COM (800) 553-4876
Construction Matters
Your Eastern & Midwest Redwood Specialist
REDWOOD DECKING THE NATURAL ALTERNATIVE
Full Range & Large Inventory Reman to Specific Patterns • Clear All Heart • Clear Mixed Grain • Construction Heart • Decking Pattern Stock • Bevel Siding • Beaded Ceiling We Ship by the Unit or by the Piece Family Owned & Operated for Over 60 Years
CHICAGO SUBURBAN LUMBER SALES 800-341-6485
7459 Franklin St., Forest Park, IL 60130
Fax: 708-771-7391 • Email: joe@chicagosuburbanlumber.com
www.chicagosuburbanlumber.com
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Building Products Digest
January 2016
Organized into chapters on the major methods of construction— wood, masonry, concrete and steel, Construction Matters examines specific technologies that experienced major transformations in the last century, or were newly invented. Architectural applications are then analyzed with building case studies that are selected based on an obvious formal relationship between the building’s form and the new type of construction that it incorporates, ranging from prewar designs in the U.S. and Europe to recent projects in Asia. The book by Georg Windeck is set for an April 2016 release. POWERHOUSEBOOKS.COM (212) 604-9074
Building-Products.com
ASSOCIAtION Update Lumbermen’s Association of Texas and Louisiana is hosting a series of seminars on team workplace and safety & loss prevention. The team workplace classes will be Jan. 19 at Marriott Courtyard, Kingwood, Tx., and Jan. 26 at Marriott Courtyard, Grapevine, Tx. They will be led by experts from McCoy’s Building Supply, FoxworthGalbraith, and Parker Lumber, who will cover hiring, employee retention, and human resources best practices. The safety and loss prevention workshops, held a day later at the same locations, will cover risk, safety and loss prevention strategies to prevent accidents in the workplace. Northwestern Lumber Association is preparing for its building products expo Jan. 11-12 at DoubleTree by Hilton in Bloomington, Mn. The keynote speech on the art of prospecting will be led by Steve Kloyda, founder of The Prospecting Expert. The association will also be hosting its Wisconsin Lumber Dealers Convention at Kalahari Resort &
Convention Center, Wisconsin Dells, Wi., on Jan 25. Keynotes and seminars will highlight of a number topics including business succession & exit strategy, selling your brand to a homeowner and today’s glulam. That same week, the future lumber leaders meeting and workshop will be taking place on Jan. 26 and 29, also held by the association. The program works to engage employees with the knowledge, insights and skills needed to be successful in today’s and tomorrow’s business environment. Lake States Lumber Association will be awarding three attendees at its upcoming winter meeting Jan. 14-15 at Radisson Hotel & Conference Center, Green Bay, Wi. The Carl Danielson Scholarship will be given out as well as the Al Anderson Memorial Award and the golf outing certificate. American Wood Council elected Boise Cascade CEO Tom Corrick as its new chairman, succeeding George Emmerson, Sierra-Pacific Industries.
Andrew Miller, Stimson Lumber, is now 1st vice-chairman and Allyn Ford, Roseburg Forest Products, 2nd vice-chairman. New directors are Neil Sherman, LP Corp., and Eric Cremers, Potlatch Corp. National Association of Wholesaler Distributors’ executive summit Jan. 26-28 in Washington D.C., aims to answer the most crucial business questions that wholesale distributors of all sizes are struggling with. Along with an economic forecast, U.S. election discussion, and other education seminars, the summit will help attendees develop leadership ideas and goals to take back to their teams. Builders Hardware Manufacturers Association installed Dan Picard, ASSA ABLOY Americas, as its new president, succeeding Scott James, CompX International. Other new officers elected to BHMA include 1st VP Patricia Yulkowski, Total Door Systems; 2nd VP John Cringole, Overhead Door Corp.; and 3rd VP Mark Bloom, Spectrum Brands.
AdVERtISE IN thE LAt ShOW gUIdE Reach Texas and Louisiana dealers BEFORE and AT the show, by advertising in the Official LAT Show Guide. LAT’s Official Show Guide will be: • Distributed to ALL dealers attending the 2016 LAT Convention March 30 – 31 in San Antonio • Inserted in the March issue of Building Products Digest and mailed to ALL lumber dealers in Texas and Louisiana • Special advertising rates to LAT members DEADLINE to reserve space: February 5, 2016
BPD
Building Products Digest
2016 SHO W GU IDE
FOR RAtES OR tO RESERVE YOUR SPACE, CONtACt (714) 486-2735 PAtRICk AdAMS – PAdAMS@bUILdINg-PROdUCtS.COM Building-Products.com
OR
ChUCk CASEY – ChUCk@bUILdINg-PROdUCtS.COM January 2016
Building Products Digest
51
IN Memoriam Edgar Alton “Eddie” Buck Sr., 74, chairman of Buck Lumber Co., Charleston, S.C., died Dec. 3. After a successful career as a bank executive, he and his wife, Margaret, purchased Rhodes Lumber, James Island, S.C., in 1975. Renamed Buck Lumber, it became the centerpiece of Jupiter Holdings, Charleston, his growing portfolio of businesses. In 2011, he was named to the South Carolina Business Hall of Fame. Charles F. “Charlie” Wilson, 95, founder and chairman of Wilson Lumber Co., Memphis, Tn., and hardwood lumberman for more than 75 years, died Oct. 24. After a stint with Kirkpatrick Coal Co., he started his lumber career with Anderson-Tully Lumber Co., Memphis, in 1939. He transferred to Anderson-Tully’s Vicksburg, Ms., operations in 1941, but returned to Memphis in 1946 to join Gates Lumber Co. In 1949, he co-founded Nixon Lumber Co., Memphis, serving as vice president until starting Wilson Lumber in 1964. He served as president until 2012 when he was succeeded by his son, Terry Wilson. He served as president of the Lumberman’s Club of Memphis in
1966 and was named Lumberman of the Year in 1983—an award named after his father, J. S. P. Wilson. In 1996, he was named Lumberman of the Century. He served on the board of directors of the Memphis Better Business Bureau, National Hardwood Lumber Association, Southern Hardwood Traffic Association, Hoo-Hoo International, and Southern Cypress Manufacturers Association. He helped launch the Architectural Woodwork Institute and Lumberman’s Educational Foundation of Memphis. Frank L. Marcantoni, 84, former branch manager for Georgia-Pacific, Baltimore, Md., died Nov. 26 of heart failure in Timonium, Md. After serving in the U.S. Army in the early 1950s and then receiving a business degree from the University of Maryland-College Park, he began his 25-year career with G-P. He retired in 1986. Patrick Timothy McGowan, 69, former president of Pennsylvania Plywood & Lumber Co., York, Pa., died Dec. 12 in York. Steven G. Pfeifer, 68, owner and general manager of McCoy True Value Hardware, Indianola, Ia., died Nov. 25.
CLASSIFIEd Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “cameraready” (advertiser sets type), $65 if we set type. Send ad to Fax 714-486-2745 or david@ building-products.com. Checks payable to 526 Media Group. Deadline: 18th of previous month. Questions? Call (714) 486-2735.
PRODUCTS FOR SALE
TRI-STATE LUMBER CO.
Your Southern Yellow Pine Timber Connection Specializing in 6x6, 6x8, 8x8, 10x10
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Building Products Digest
January 2016
Building-Products.com
dAtE book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Northwestern Lumber Assn. – Jan. 11-12, Building Products Expo, DoubleTree, Bloomington, Mn; (763) 544-6822; www.nlassn.org. Missouri Forest Products Assn. – Jan. 12, winter meeting, Capital Plaza Hotel, Jefferson City, Mi.; www.moforest.org. New Hampshire Retail Lumber Assn. – Jan. 12, roundtable/board meeting, Manchester Country Club, Bedford, N.H.; www.nrla.org. American Fence Assn. – Jan. 12-15, FenceTech/DeckTech, Music City Center, Nashville, Tn.; www.americanfenceassociation.com. Lake States Lumber Assn. – Jan. 14-15, annual winter meeting, Radisson, Green Bay, Wi.; (920) 884-0409; www.lsla.com. Do it Best Corp. – Jan. 15-16, winter conference, Hotel del Coronado, San Diego, Ca.; (260) 748-5300; www.doitbestcorp. Guardian Building Products – Jan. 16-17, dealers show, Paris Hotel, Las Vegas, Nv.; (800) 569-4262; www.guardianbp.com. Lumbermen’s Association of Texas & Louisiana – Jan. 19-20, HR/safety seminars, Kingwood, Tx.; Jan. 26-27, Grapevine, Tx.; (512) 472-1194; www.lat.org International Builders Show – Jan. 19-21, Las Vegas Convention Center, Las Vegas, Nv.; www.buildersshow.com. National Kitchen & Bath Association – Jan. 19-21, annual show, Las Vegas Convention Center, Las Vegas, Nv.; www.nkba.org. Surfaces – Jan. 19-22, Las Vegas, Nv.; www.surfaces.com. Retail Lumber Dealers Association of Maine – Jan. 21, board meeting, Senator Inn, Augusta, Me.; www.nrla.org. Mid-America Lumbermens Association – Jan. 21-22, Kansas winter meeting, Topeka, Ks.; (800) 747-6529; www.themla.com. Handy Hardware Wholesale – Jan. 21-23, market, George R. Brown Convention Center, Houston, Tx.; www.handyhardware.com. House-Hasson Hardware – Jan. 21-23, dealer market, Opryland Resort, Nashville, Tn.; (800) 333-0520; www.househasson.com. BC Wood – Jan. 22-24, Honolulu, Hi.; www.bcwood.com. Northwestern Lumber Assn. – Jan. 25, Wisconsin lumber dealers convention, Kalahari Resort & Convention Center, Wisconsin Dells, Wi.; (763) 544-6822; www.nlassn.org.
South Dakota Retail Lumerman’s Assn. – Feb. 9-10, convention, Best Western Plus Ramkota, Sioux Falls, S.D.; (605) 660-9742. Northwestern Lumber Assn. – Feb. 10-11, blueprint reading & material take-off, La Quinta Hotel, Madison, Wi.; www.nlassn.org. Northeastern Retail Lumber Assn. – Feb. 10-12, annual LBM expo, Rhode Island Convention Center, Providence, R.I.; Feb. 11, NE Young Lumber Execs annual meeting; www.nrla.org. Florida Hardware Co. – Feb. 13-14, market, Doubletree Convention Center, Orlando, Fl.; (800) 372-2110; www.floridahardware.com.
AdVERtISERS Index Arch Wood Protection [www.wolmanizedwood.com].................45 AZEK [www.azek.com].....................................................................7 Boral [www.boraltruexterior.com] .......................................Cover II Cedar Creek Wholesale [www.cedarcreek.com] ...........................5 Chicago Suburban [www.chicagosuburbanlumber.com]...........50 Columbia Vista Corp. [www.columbiavista.com] .......................41 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................48 CT Darnell Construction [www.ct-darnell.com]...........................29 Everwood Treatment Co. [www.everwoodtreatment.com].........27 KOMA Trimboards [www.komatrimboards.com] ........................17 Kop-Coat [www.kop-coat.com] ...........................................Cover III Lumbermens Assn. of Texas & Louisiana [www.lat.org] ...........25 Maze Nails [www.mazenails.com]...................................................8 Mid-Columbia Lumber [www.mid-columbialumber.com] ...........46 North American Wholesale Lumber Assn. [www.nawla.org] .....21 Northeastern Retail Lumber Association [www.nrla.com] .........33 Potlatch Corp. [www.potlatchcorp.com] ......................................39
Northeast Window & Door Association – Jan. 25-26, winter education meeting, Valley Forge Casino & Resort, King of Prussia, Pa.; (609) 799-4900; www.nwda.net.
Ray White Lumber [www.raywhitelumber.com] ..........................49
National Assn. of Wholesaler-Distributors – Jan. 26-28, executive summit, Washington, D.C.; (202) 872-0885; www.naw.org.
Simpson Strong-Tie [www.strongtie.com]...........................Cover I
Northwestern Lumber Assn. – Jan. 26 & 29, Future Leaders meeting, Wisconsin Dells, Wi.; (763) 544-6822; www.nlassn.org.
Roseburg Forest Products [www.roseburg.com].............Cover IV
Smith Millwork [www.smithmillwork.com].....................................3 Snider Industries [www.sniderindustries.com] ...........................50
Indiana Hardwood Lumbermen’s Association – Feb. 2-4, convention & expo, Indianapolis Marriott Downtown, Indianapolis, In.; (800) 640-4452; www.ihla.org.
Southern Forest Products Assn. [www.spfa.com]......................49
Building Materials Suppliers Association – Feb. 3-4, Building Products Show, Hickory Metro Convention Center, Hickory, N.C.; (800) 849-1503; www.mybmsa.org.
Sunbelt Racks [www.sunbelt-rack.com] ......................................29
Illinois Lumber & Material Dealers Association – Feb. 4, convention & expo, Paradice Hotel & Casino, East Peoria, Il.; (800) 2528641; www.ilmda.com.
Southern Pine Inspection Bureau [www.spib.com] ....................28
Swanson Group Sales Co. [www.swansongroupinc.com].........37 Tri-State Lumber [www.homanindustries.com]...........................48
Budma 2016 – Feb. 2-5, Poznan, Poland; www.budma.com.
Vaagen Bros. Lumber Inc. [www.vaagenbros.com]....................42
Mississippi Lumber Manufacturers Assn. – Feb. 5, annual meeting, Alluvian Hotel, Greenwood, Mi; www.mlmalumber.com.
Versatex [www.versatex.com].......................................................23
National Frame Building Expo – March. 8-11, Indiana Convention Center, Indianapolis, In.; (800) 726-9966; www.nfba.org. North American Wholesale Lumber Association – Feb. 9, regional meeting, Providence, R.I.; (800) 527-8258; www.nawla.org. Building-Products.com
Viance [www.treatedwood.com] ...................................................31 Western Forest Products [www.westernforest.com] ..................43 Westervelt Lumber [www.westerveltlumber.com] ......................44 January 2016
Building Products Digest
53
FLAShback 65 Years Ago This Month
J ust
as the U.S. led United Nations forces in the Korean War, BPD predecessor The Merchant Magazine in January 1951 alerted the lumber industry on how it could do its part. In fact, the nation’s 26,000 retail dealers boasted they had enough yard capacity to store more than a full year’s production of lumber “in case stockpiling becomes desirable for defense purposes.” At the time, retail dealers could accommodate a total of 70 billion bd. ft. in their yards, had sufficient trackage to permit 103,000 freight cars containing 2.5 billion bd. ft. to be unloaded at one time, and operated more than 88,000 trucks, tractors and other mechanized handling equipment; 9,552 planing mills; and 1,148 dry kilns. In other news: • Five prominent lumbermen were appointed as “special consultants on lumber” to U.S. defense agencies. Harry T. Kendall, chairman of the board, Weyerhaeuser Sales Co., St. Paul, Mn., was named a special consultant to the Munitions Board, the Defense Department policy group that coordinated the procurement, production and distribution plans of the military services. Four others—C.A. Bruce, executive VP, E.L. Bruce Lumber Co.,
Memphis, Tn.; Swift Berry, formerly manager, MichiganCalifornia Lumber Co., Placerville, Ca.; John Camp Sr., Camp Mfg. Co., Franklin, Va.; and Charles W. Ingham, Fischer Lumber Co., Marcola, Or.— were tapped as advisors to the Forest Products Division of the Commerce Department’s National Production Authority. • The Celco Corp., Santa Monica, Ca., introduced a new washable lumber crayon. “Crayoff Lumber Crayons” were made with a patented soap base that could be wiped off with a damp cloth without marring the appearance or surface of the wood. Previously companies had to use sanding equipment to remove the grease marks, which could then melt into the wood. The crayons were offered in eight different colors. • Paul Euphrat, the younger son of wholesaler M.L. “Duke” Euphrat, joined his father’s firm, San Francisco-based WendlingNathan Co., initially working out of the Portland, Or., office to buy lumber from the Northwest mills. Previously Paul had been with San Joaquin Lumber Co., Stockton, Ca., after serving as a Navy Air Corps gunner during World War II. Under the Euphrats, Wendling-
LAUNDRY ROOMS—some evidently the size of show kitchens—were a new sales opportunity in the early 1950s.
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Building Products Digest
January 2016
JANUARY 1951 issue of The California Lumber Merchant spotlighted Southern California wholesale distributor Western Hardwood Lumber Co. Its old L.A. warehouse is now a Guess factory outlet store.
Nathan became The Merchant’s most reliable original advertiser, advertising with us at least once every year from 1922 until 2000. Paul died in 2013 at age 86. • E.S. Brush, San Francisco, Ca., added a retail yard at Pier 92. • Long-Bell Lumber Co. began producing modular kitchen units at its mill in Longview, Wa. The units featured clear Douglas fir panels with shelves of plywood electronically welded to sturdy fir frames. Dealers were provided with newspaper ad slicks, radio spots, news stories for the “homemaker’s page” of their local newspaper, catalogues, envelope stuffers, and detail drawings to use as sales aids. The kitchens were distributed in either assembled or knocked-down packages and could be shipped in mixed cars of lumber. • To help retailers sell more wood to home builders, readers were briefed on the growing trend of home laundries. “Laundry specialists” offered tips on planning the perfect home laundry, such as properly arranging appliances, counters and cabinets for efficient “assembly line washday operations.”
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It takes good people to make quality wood products. We should know – we’ve been doing it for over 80 years. At Roseburg, we don’t just make great wood products. We build solutions for your business.
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