etirive ligence Green - The fashion statement of the future

By Carla Waldemar

months they already felt the need for a larger location and moved into quarters affording them 4,300 sq. ft.: I,000 for a warehouse, 800 for offices, and the rest, the showroom.

During that research period (well, and ever after), they evaluated potential products. Turns out, the hardest part wasstill is - beating vendors off . "They want lrs," Mick reports. "We're approached with three to five new products a week. But it's our responsibility to make sure the product is actually green. There's a lot of green-washing around, and it's growing," he notes of the pseudo-labeling that's on the rise. "We have to be pretty vigilant."

IIJHAT did these guys know V Y about buildins centers? Not enough to fill your u-u.rug" toolbox. But they did know something about supply and demand.

When two partners opened a.k.a.Green Scottsdale-the Arizona area's first environmentally friendly building supply store-it was born not from industry expertise, but from trend watching and personal passion.

And frustration. Jeff Frost, as an architect with a strong environmental/design focus, couldn't find a showroom to get clients up-close and personal with the products he espoused. And Mick Dalrymple, who worked in the film industry, in his free time served on the Arizona chapter of the U.S. Green Building Council he'd set up. It was his job to make presentations on going green rvith such items as LE,ED products. His audience would invariably respond, "Fine. But where can I find them?'

"I brought more of a homeowner's perspective-rather than that of commercial building," he says. "I saw it as a great marketing opportunity-to fill the gap existing on green building."

In order to devote full time to the endeavor, he started looking for a partner. That's when Jeff Frost, the architect, entered the picture. As Mick recalls, "When I started asking around at the Council for someone like-minded, they'd mention his name; they'd tell me, 'He was just in here.. "'

One phone call was all it took. "We started research in 2004, launched our business in April 2005, and opened the doors that June," Mick reports. "Our purpose was to flll the gap."

After scouring the town to secure a rental building "that was not too cmbarrassing." after just seven

So, early on, the partners developed key selection criteria. "We started with the most basic premise," Mick explains. "The product must represent the least toxic alternative. We also choose items made from recycled materials and/or items that are recyclable, themselves. On top of that, they have to be desirable and stylish. We don't carry stuff just for the sake of'green'. It has to have real design appeal-which, these days, is not a problem," he underscores.

Other criteria dictate that products carry the least embedded energy; that they're made locally, if possibleboth to support the local economy and to cut dorvn on use of transportation fuel. Products that save energy or water also are high on the list. And finally-what's turned out to be a make-or-break factor-the ability of a manufacturer to deliver.

Products that Green stocks range from FSC-certified lumber, purchased by the carload, to flooring in materials such as bamboo and cork; insulation, including that fabricated from recycled denim; counteftops like IceStone; flooring of recycled glass and concrete, and windows, doors, and fixtures. The company doesn't handle appliances, but exhibits some Bausch products in its showroom and refers customers directly to the manufacturer.

Recruiting staff for the start-up outfit presented even less of a challenge. Employees found them. "We didn't even have to advertise to accumulate a stack of resumes." Mick reports. "We're blessed with people who are pretty 1'anatical about green products. Plus, we have a good relationship with the local college's interior design department; they send us interns and graduates who have a real passion for sustainabil ity."

Customers come armed with passion, too-once the word gets out.

"I haven't a natural background in this field, so there was a huge learning curve," Mick allows. "The first thing I learned was. there lvasn't an actual sales channel. I learned that there's not one, it's all over the map."

To reach the kind of educated, committed homeowner who fits Green's demographic, Mick finds that PR works better than paid advertising. "We donate things to nonprofits' silent auctions and underwrite the local public radio-causes rve believe in that also pay off for us."

While Green's clientele is largely retail-based, the company also works directly with builders. Says Mick, "The Phoenix area is the fastest-growing metro in the U.S., so it's real chaotic here. So, what I do is not just selling to the big production builders, but consulting with them, too; they're willing to pay to be educated in how this works. (The problem with big builders is, they're in pretty dire straits right now, so they haven't the money to try anything new. "But," he emphasizes, "they do know they need to do something different."

"We find that the smaller, privately held companies have more patience to wait it out. They're in this for the long run. They see the green market growing and want to be out in front of it."

Yet today, the market is "pretty erratic, very unpredictable." While Green has enjoyed a period of handsome 307o increases in month-tomonth sales, "sales can swing 4OVo," Mick reports-"putting us at risk. So, three months ago, we turned to consulting as well, beefed up that side," to enable the young company to ride out the troughs between the crests.

Because those crests are the wave of the future. The green movement will grow, and Green is preparing to grow right along with it. "We've already had over a dozen requests from outside the state for franchising; we don't know yet how to feel about that-it's an extremely complex matter. Green building depends on local relationships and factoring in distinct regional climates," he points out.

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Wholesaler Succeeds Sandy

Four parrtncrs htrvc acquired invcntory. equiprnent and othcr assets fiom M.L. Sandy, Cornith. Ms.. to launch their o"vn r.vholesale distribution business specializing in southern pinc.

Orvl Creek Lumber r.vas firrmcd by tbur partners: Mike Glisson, long-timc sales manager at M.L. Sandy. along rvith Steve Newman, Jeff Richards. ancl Rodney Haas, Lumber Remanufacturing Services, Belk, Al.

lt maintains a rvarehouse in Sehner. ofTicc in Bclk, and is temporarily selling invcrrtory from M.L. Sandy's rvarcl'rousc in Corinth.

Five-Month-Old SYP Mill ldled

J.P. Pricc Lumber Co. ternpclrarily closed its ncrv pine sarvmill in Monticcllo. Ar.. on Sept. I I. just five months altcr opcnin.u.

"A drastic dcclinc in the construction of nerv houses. combincd rvith an oversupply of cxisting unsold houses, has resulted in a much lorver demand fbr lumbcr as rvell as a substantial reducti<ln in rvholesale lumber prices," statcd a company news releasc. lt also said that the mill will rcmain closed "until furthcr notice."

Tht' rrcrv mill was expected trr crcate 100 new jobs when fully opcrational. The -50 employees rc('cr)tly llricl ol'l'rvill reeeire trvo rvecks sevemnce pay.

Error Stalls Ace Conversion

Ace Harclr.vare has dropped plans to convert frorn a rctailcr-orvncd cooperative into a tirr-profit corporation by early next ycar. rvhilc it searches for the solrrcc of a $ 1 54 million accor-rr.rting crror clating to 2002.

"Therc is rto missill! nr()ncy. there is no missing invcntory. there is no cvidence of thcft." said c.e.o./ president Ray Griffith. "Obviously we're upset, but rve f'eel very cclnfident that it's a manageable situation and that our business is sound. This is an accounting issue."

Criffith said he learned of the problcm Aug. 16, tr'vo weeks befbre plans l'or the conversion rvere announccd. "l immediately thought it r'vas sirnply a balance sheet issue. a mistake that lve r,vould find." he said. "There 'uvas probably a little bit of denial there ." Protivit lnc. has been hired to find and rccorrcile lvhat Griffith called "a significant accounting crror."

In a letter to store owners. Gritfith said that Ace may hold back "most or all" of its profits this year-rvliich arc nclrn-rally distributed to store owners as patronagc dividends considering thern to havc bcen paid prei'iously luncl erroncously. "This issue rvill not irnpact Acc's ability to provide you rvith thc mcrchandise and services you cxpcct frorn Ace." he continucd. "Wc rvill contirrue serving all of our retailcrs as rvc clo today."

Thc 83-ycar-olcl hardrvarc chain, rvhich has bccn a retailcr-orvrrcd co opcrative since 1976. has 4.600 stores that ran-s up almost lli l2 billion in rctail sales last year.

In August, Griffith outlined the convclsiort plan to about 250 Ace rclirilcrr rrl u lhrcc-da) meeting in Schaurrbcrg, Il., and scnt out letters to its 3.600 dealers. Meetings in 32 othcr citics wcre scheduled, and the plan r,vas also discussed at the fall dealcr rnccting held in late September in Denvcr. Co. Mcrnbers were to vote on thc plan in late Deccrnber.

Griffith had told rnerrbcrs that thc change "rvould provide thc corporation and the board of directors bcttcr tools to compete a-sainst thc publicly funded competition that rve c()rxpctc asainst-Home Depot. Lorvc's and the like. It rvould unlock thc value of the stock. rvhich rvould appreciate based on the profits of the company."

HB&G Acquires FlexTrim

HB&G Building Products, Troy, Al., has purchased flexible molding producer Flex Trim Inc., Fontana, Ca.

Flex Trim pioneered flexible architecturaf trim molding 22 years ago and currently produces two brands, Flex Trim and ZzzzFLEX.

Minus former owner Allan Jones. Flex Trim will retain most of its staff. including Hans Schultz, who runs the production facility in Fontana. Flex Trim is also produced in Garner, N.C.

"We plan to operate it as its own entity," said HB&G marketing manag- er Tim Bobo. "It's a self-running business; we didn't have to go through a lot of hoops to keep it going."

DixiePly Enters Louisiana

Dixie Plywood and Lumber Co. has opened its eleventh distribution center-a facility in Hammond, La., to serve the Gulf Goast.

"Our goal is to ship as far east as Mobile and as far north as Jackson." said Duke Barnes, Gulf Coast regional manager. Todd Howard is warehouse manager.

Although the location is Dixieply's first in the state, the company has been servicing as far east as Lafayette from its DC in Houston, Tx.

Amerimix Bonds With Bonsal

Bonsal American, Charlotte, N.C., has acquired Amerimix Industries, St. Petersburg, Fl, manufacturer of bagged and bulk mortar and stucco mixes for commercial contractors and distributors.

Jorge G. Chiappo lvill continue as president of Amerimix, which rvill operate as a separate entity under Bonsal American.

Do it Best Gets Better

Do it Best Corp., Fort Wayne, In., wif l return a record-setting $126.2 million rebate to its member-owners at the co-op's October market.

"This year, the Do it Best Corp. team and our member-owners turned in the most positive bottom-line performance in our company's history," said president and c.e.o. Bob Taylor. "What makes this even more impressive is that this was accomplished in the face of a slumping housing market, softness in some regional economies, and continued high fuel prices."

To ensure continued success. the co-op continues to invest in important retail programs such as the Signature store design program, which provides a modern, more visually integrated shopping environment, and RetailSTART!, a program that helps member-owners make informed decisions about when and where to add new locations.

"As we begin our next fiscal year, we take pride in our consistent financial strength, stability, and bottom-line performance," said Taylor. "We are confident in the dedication of our staff. And we are confident in the entrepreneurial spirit of our members to grow their businesses."

Decks Keep Stacking Up

U.S. demand for decking will reach 3.6 billion lineal ft. by 2011, supported by solid residential improvement and repair activity, according to a new forecast by the Freedonia Group.

In the $4.6-billion-a-year-U.S. decking market, alternative materials such as wood-plastic composites and plastic will continue to lead gains, further supplanting wood. Tropical hardwoods will grow the fastest in the wood decking segment.