The secret of success? Think small

[rven HEARD or Silverton. Or.? -U.rMaybe not. Or Brooks, Molalla or Woodburn? Me neither.

But Withers Lumber has yards in all four pinpricks on the state mapand for a reason it believes in and is banking on. Says Trent Withers, who runs the company his grandfather launched in 1928, "We are never going to be a big, mega-operation. My grandfather didn't want that, my father didn't want that, and I don't want that. Everyone else plops down a l0-acre yard and fans people out for 50 miles. Instead, our idea is just the opposite: to have small yards in small communities, with local people, and become part of the towns."

Soft-spoken words, to be sure, but they come with a fighting edge behind them. That goes back nearly 80 years, to when the big boys-in this case,

Copeland's-rode into Woodburn and told Trent's grandpa, "We're going to make it tough on you. Sell out, or we'll put a yard across the street." He didn't, and they did.

Grandfather Withers eventually gave up the yard and relocated to nearby Mount Angel. But when decades later Copeland's split up the chain, Withers was able to repurchase the Woodburn store, making two yards just a couple of miles apart. In 1962,Trent' s father, Bob, added a third location in Brooks, also just up the road. "Three yards within 20 miles," Trent underscores the operating mantra.

Then, about five years ago, he says, "two things became clear. Copeland's dried up completely; they lost their yards in small communities. In fact, here in Oregon, the business model became one of mega-yards with a hundred people serving some 500 miles. That only reinforced our company's idea that we could do well by not acting like the big yards. In fact, we actually have our fifth location mapped out, as soon as the economy improves," confides Trent, who took over from his dad in 1998.

"Oh, Dad still comes in just often enough to make trouble, to stir the pot," his offspring notes with abundant affection.

Maybe Bob always suspected his prodigal son would be back. "Growing up, I wanted nothing to do with the lumberyard," Trent bristles in retrospect. "I left to go to theater school in L.A. and become a movie star." But after the glitz started to tarnish and million-dollar contracts failed to come his wav. when Dad offered, "Why don't you come back?" Well-sure! And no regrets. "Now I'm using my theater background as a sales guy," he readily asserts, "and having a lot of fun."

Making big decisions, too. The biggest change came about when Home Depot moved in close by, prodding Trent to get out of the retail trade and concentrate solely on pros. "We changed the product mix and staff [orientation] in order to serve the smaller contractors, who built one or two houses a year. We're a small company, and small operations like to do business with each other. We all like the personal relationships and feel connected-not serving those larger customers of a 'typical' yard, but they're large to us."

"In fact,' he says, "our only rule here is to have no rules. To be flexible. We want to operate on an individual basis, according to their individual needs."

For instance? "For instance, free delivery. And one of the biggest reasons for our success is that, unlike the big companies, we don't deliver the whole house package in one day. (Others will drop the whole thing there to warp and twist and rot.) Instead, we make multiple small deliveries- 15, not one or two. It's part of being a smaller yard in a small town. We carry a little bit of everything they need to build a house, too. And we offer our customers product-knowledge sessions on issues such as the proper way to install windows and doors. There are so many lawsuits waiting to happen, so we spend time educating ourselves and our contractors."

Having employees who are long-timers gives Withers a leg up, too. "They're mature associates, some with 14 years with us, and we appreciate and value their expertise. It's not like going to a box, where folks are earning $10 an hour."

Not at all. Trent has put the earning potential squarely in his team's collective hands. He's established an incentive program that pays off based on productivity. It works like this: dollar sales divided by number of staff-which, he says, is "the most important number in a business. And the great thing about the plan is that they police themselves. 'You have to hit the numbers,' they'll say. And this way, it takes fewer people to do the business we do."

Know what, Trent? There's a catchy slogan out there that sums it up: "Do more with less."

Bingo. And that's especially vital because, contrary to a reporter's expectation, there's little economy to be achieved in operating four stores, Trent contends. "No. Actually, it costs more. A mega-yard could buy five truckloads. Instead, we order one and ship it to one location, then split it up and transport it to the others." However, customers do love the fact that if one yard doesn't have a crucial item in stock at the moment, it's likely that another one, close by, will step up and fill the gap.

Withers boasts five '..very aggressive" outside salespeople who troll for new accounts. "They'll approach an under-served contractor and show him how a yard that values his business might treat him differently." And occasionally, treat is exactly the right word-for, instead of spending all its dollars on advertising, reports Trent, "we'll find out what our customers like-such as fishing or baseball. Then we arrange events focused on their particular passion."

Even in this dicey economy. And, let's be honest, it's hit Oregon hard. To survive, Withers has been forced to reduce its staff from 60 to 20-a move, Trent acknowledges, as he bites the bullet to ease the pain, "that was key to keeping the company around until the next good times. In this state," he says, "there's still no light at the end of the tunnel, and the coming winter will be tough."

But, hey I It still beats Hollywood. "It's so much fun to assemble a group of people and head them in the same direction-to set them to set aside their differences and do what's best for our customers-which," he underscores. "is ultimatelv how we all benefit." Amen to that!

Carla Waldemar cwaldemar@ comcast.net

Build-lt Cook's Way (J,H. Cook Lumber Co.), Mt. Pteasant, Pa., has closed after 101 years.

Williams Lumber & Home Center, Rhinebeck, N.Y., hopes to begin construction next month on store #10, in Washington Hollow, N.Y., for a summer 2011 opening.

The existing building, site of a longvacant car dealership, will be converted to a kitchen and bath showroom in front and a '13,000-sq. ft. home center in the rear. Three warehouses will be constructed to the side.

Central Builders Supply, Pelham, Al., has declared bankruptcy and closed after 14 years.

Its site was sold to Roy Martin Construction for $700,000, with its equipment and remaining inventory liquidated at a Seot. 9 auction.

Kramer Ace Hardw?r€, Garner, la., is moving into a larger, 14,000sq. ft. building by the end of the year.

Staples Hardware, Bingham, Me., has been opened by Mike and Debbie Staoles.

Michigan Ace Chain Adds #4

Three-unit Meyer Acc Hardware. Petoskcy, Mi., acquirecl Gaylord Ace Hardware, Gaylord, Mi.. which closed eight months ago aftcr owner Wally Drzewiccki filcd bankruptcy.

Thc Gaylord store reopcned in September r-rndcr thc Meyer Acc namc, with Dave Damp as managcr.

American Moving Alabama Operations to Larger Facility

Amcrican Lumber. Uvaldc. Tx.. will opcn an expanded southeastcrn rcgional remanufircturing and distribution centcr in Tarrant (Birmin-lham). Al.

The 98,000-sq. ft. fbrrner corru_liated paper plant was acquired from Georgia-Pacific.

ln addition to a manufacturin_s plant and three sales offices in Texas. American has had a facility in Tuscaloosa, Al.. for the piist fi i'e years. By this month. all Alabama operations will be relocated fronr Tuscaloosa to B irrriingham.

Arnerican Lurnbcr president Barly Hendler notccl, "This tacility will provide our cLlstorners ancl vcndors with a ccntralizccl location. which will allow fbl this continuccl gfowth. "

Alabama operations manager Joe Hcndler added, "We are capable of manufacturing large and small quantities of spccialty products ftrr our custonrers. and with cxpanded facilitics we lr'el wc will hc rrrore cornpetitivc in the nrarkctplace."

House-Hasson Expanding

House-Hassort Hardware rece ntlv complctccl a $l nrillion,50,(XX)-sc1. ft. cxpansion of its headquartcrs lacility in Knoxville , Tn.. and is launching a $2 nrillion expansion ol' its warehousc in Prichard. W.V.

Improvenrents will include a 100.000-sq. ft. addition to the warehouse and new truck docks. Officials said that the expansion will allow more northern-based customers to be served from the W.V. facility rather than the one in Knoxville.

According to president Don Hasson. the expansion will allow the company to make full use of ernployees -sained with the October 2009 acquisition of Moore-Handley Inc. Hc also saicl that the dealers HouscHasson serves hlve been ablc to incrcasc sanre-store sales by 3% de-spitc a bad econorny ancl cornpctitiort ll'orn big boxes.

Milling Equipment Maintenance Man Crushed

Authorities are investigating the accidental death of a subcontractor who was crushed by a falling piece of machinery at Rex Lumber Co., Graceville, Fl.

John Crawford,46, was performing equipment maintenance Sept. 3 when a part fell on and pinned him.

Investors Buy Vinyl Producer

Associated Materials LLC, Cuyahoga Falls, Oh., agreed to be acquired by investment group Hellman & Friedman for roughly $ I .3 billion.

The vinyl siding/window producer is currently majority owned by Investcorp and Harvest Partners.

OSHA Cites Alabama Mill

The Occupational Safety & Health Administration has cited Phenix Lumber, Phenix City, A1., for 53 safety and health violations following the death of one worker and the critical injury of a second.

The death occurred in March, when a worker's head was crushed between a motor being hoisted with a forklift and other equipment. A second worker suffered a broken neck after he fell while completing daily maintenance on a debarker.

At the time of the accidents, OSHA officials were conducting a follow-up investigation to determine if previous violations had been corrected.

Shingle Thief Sentenced

The last of four people arrested for robberies at Lapointe Lumber, Augusta, Me., was sentenced to 15 months in prison.

Johnathan R. Scott, 35, pleaded guilty to l0 counts of theft by unauthorized taking, two counts of burglary, and two counts of criminal trespass. The thefts occurred during the summer of 2O09 at Lapointe's yards in Augusta, Gardiner, and Monmouth, Me. Scott was sentenced to five years in prison, but all but 15 months were suspended. He also was ordered to pay S55.000 in restitution and serve three years of probation.

Scott and three others were arrested one year ago, after a police officer noticed that a vehicle hauling a trailer full of new asphalt shingles had a flat tire. Another officer found a hole in a fence at Lapointe's yard in Gardiner, and the manager reported that a pallet full of shingles had disappeared.