BPD November 2016 by 526 Media Group

NOVEMBER 2016

BPD

Building Products Digest

INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS

FALL DECKING SPECIAL ISSUE • TREATED WOOD SPEC TOOLS • LVL BEAMS

New AWPA Standards for Treated Wood There is an important change in the U1 Standards establishing new guidelines for wood treated to UC4A Ground Contact General Use. As an example, joists and beams shall be treated to UC4A (ground contact when they are diffcult to maintain, repair or replace and are critical to the performance and safety of the entire system. For more information visit

kopperspc.com

ABOVE GROUND TREATED JOISTS AND BEAMS REMAIN BUILDING CODE COMPLIANT FOR DECK CONSTRUCTION

ABOVE GROUND

ABOVE BOARD Wood treated to meet the AWPA standards is third-party inspected and bears the CheckMark® of Quality on end tags. Viance™ preservatives have been peer-reviewed and are listed in AWPA’s Book of Standards and are reafﬁrmed every ﬁve years based on their approved use. Above Ground wood treated to the AWPA standards remains IRC® and IBC® code compliant while using the appropriate amount of chemicals required to ensure performance. Our Ecolife™ preservative contains a wood stabilizer designed to help treated wood stay straighter, with reduced checking and cracking. We stand behind our Above Ground treated wood with a Lifetime Limited Warranty.* *See Lifetime Limited Warranty for details.

W E ’ V E A L W A Y S B E E N S T R A I G H T W I T H Y O U.

Wood Preservative Systems Produced to AWPA Standards

Visit treatedwood.com/options to learn more.

Make a Splash

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Photograph is for dramatization purposes only and screws should not be submerged in water. ÂŠ 2016 Simpson S Strong-Tie Company Inc. DCUSS16-D

November 2016

BPD

n Volume 35 n Number 9

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, Marketing & Circulation Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes David Cutler Managing Editor David Koenig david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn Director of Sales Chuck Casey chuck@building-products.com

Special Features

In Every Issue

8 FEATURE STORY

6 ACROSS THE BOARD

STOCKING STRATEGIES FOR DECKING

16 COMPETITIVE INTELLIGENCE

10 MARGIN BUILDERS

18 OLSEN ON SALES

DECKED OUT SHOWROOM BRINGS PRODUCTS TO LIFE

20 SELLING WITH KAHLE

12 PRODUCT SPOTLIGHT

38 ASSOCIATION UPDATE

BOLSTER DECK SALES WITH COMPOSITES

16 INDUSTRY TRENDS

40 MOVERS & SHAKERS

OPTIMIZE DESIGN VALUES WITH LVL BEAMS AND HEADERS

42 NEW PRODUCTS

24 SALES TIPS

52 IN MEMORIAM

26 MARGIN BUILDERS

52 CLASSIFIED MARKETPLACE

28 NAWLA: THINKING AHEAD

53 DATE BOOK

TOOLS FOR NEW TREATED WOOD RULES

53 ADVERTISERS INDEX

HOW TO BUILD HIGH QUALITY LEADS HOW TO EXTEND, HOW TO COLLECT

46 EVENT RECAP: DECK, REMODEL EXPOS

54 FLASHBACK

Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & VIDEO

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THIS MONTH’S EDITION AS WELL BACK ISSUES OF BPD CAN BE VIEWED DIGITALLY AT BUILDING-PRODUCTS.COM AS

November 2016

How to Advertise PRINT or ONLINE Chuck Casey Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com

How to Subscribe SUBSCRIPTIONS Phone (714) 486-2735 Fax 714-486-2745 sadams@building-products.com or send a check to 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 U.S.A.: One year (12 issues), $24 Two years, $39 Three years, $54 SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping FOREIGN (Contact sadams@building-products.com for surface and air rates, including to Canada) 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.

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ACROSS the Board By Patrick Adams

A new season I

’VE BEEN FORTUNATE in my life to have been surrounded by people who cared enough to share advice. While some who are young roll their eyes at tales shared by their elders, I always sat on the edge of my chair as if they were the greatest stories ever told. I remember a customer of mine once told me, “Remember that everything in life is just a season.” That was one of those statements that sat with me, probably because in my early 20s I had no idea what he was talking about—but because I respected him, it sat in the back of my mind. Recently, there was an event that made me recall that conversation and it finally made sense to me. Some refer to them as “chapters” or even as phases of your life. However, I think “seasons” are the most appropriate, colorful way to describe them. Sometimes, a long, hard winter makes you wonder why you live in a particular area only to be followed by the most amazing spring that you can remember. Other times, a perfect summer just can never last long enough and when you feel that first cool breeze, you know the days are numbered until fall begins. In my life and career, I’ve had many seasons. Some were grueling and had me wondering whether there would ever be an end to it while others, I felt like it was so good that I was in a dream and just wanted to hold my breath and hope that I never woke up. As I’ve grown older, rather than racing through life, I’ve learned to appreciate every season for whatever they bring because I know that right around the corner, a new one will begin. Good or bad, there is always something to learn and, looking back, always something to appreciate.

Building Products Digest

I now seem to notice the stark difference between those who share this philosophy versus those who operate as if life is just one season that apparently is more like a multi-decade sprint. I see leaders who run their businesses in this fashion and create a work culture reflective of this constant sense of urgency. I can relate because I used to think that way—more like the hare than the tortoise. I suppose everyone who is lucky enough reaches that point in time when they have seen and lived enough that they begin sharing advice. My advice is this: wake up every morning and think of something you’re thankful for. Look at the glass as always half full. And remember that everything in life is a season, so take a minute and enjoy it. Our industry is in one of its “good times” and in spite of the chaos of the nightly news cycle, it appears as though the good times will last for a while. Our business also is in a great time where we’ve been able to do many things that help and serve our industry, clients and readers while embarking on exciting new things that will hopefully serve us for many generations. As the air begins to change and leaves start to fall, I knew a new season had just started as I recently watched the birth of my son. I am reminded of just how fortunate I am to have my family, friends, employees and customers who all live in this great country of ours all

doing something that matters for the good of others. Indeed he was correct—everything in life is a season! Those of you who have children can relate to that moment when a new life enters the world because of you. All of the seemingly big things become small. For that moment, you become the best version of yourself and the future is full of hope and possibility because certainly, no greater honor could be placed on a man than the privilege of becoming a father (again)! As we enter fall and the start of the holiday season, I am thankful for all of those around me, for all of your support and feedback, and for this great industry that we all serve. From my family and team, I wish you all the very best in this next season of our lives! “If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.” ~ Anne Bradstreet

Patrick S. Adams Publisher/President padams@building-products.com

November 2016

Building-Products.com

FEATURE Story By Brent Gwatney, MoistureShield

Stocking strategies for composite decking M

ARKET RESEARCHERS at Principia predict that within the next few years composites and cellular PVC will account for 20% of decking sales volume and 40% of total value of decking sold. To ensure that your lumberyard is taking advantage of this rapidly growing category, it’s important to consider inventory strategies that will maximize sales potential. Based on visits to yards throughout the country and discussions with hundreds of dealers, here are stocking tips

for increasing sales dollars and margins in the composite category.

Stocking Challenges and Solutions Some yards make the mistake of treating composites like a commodity instead of a high-end specialty product. With composites costing nearly twice the price per lineal foot of wood decking, selling and maintaining the inventory like a specialty product (such as prefinished fiberglass doors

or exterior mouldings) will ensure that you have the best quality product and stock to meet your customers’ needs. Although composite decking is intended for outdoor use, it’s important to store opened products where they’ll stay clean and good looking and will not be damaged by forklifts or vehicle traffic in the yard. Ideally storage should be inside, or at least in a covered area. While composites are durable, it’s a good idea to train your employees to store them with care in order to keep them looking their best for customers. As with other decking products, the weight and bulk of composites can make indoor storage a challenge, especially at smaller yards. Special order programs can help balance stock on hand while offering a wide selection to better serve your customers. A second stocking challenge with composites has to do with the evolving nature of the product. While wood decking lines rarely change much, composite manufacturers regularly introduce new products. When manufacturers change SKUs, dealers may end up with obsolete products, and are left trying to sell against newer lines with more bells and whistles. As a result, when evaluating brands to stock, be sure to ask the manufacturer how they’ve assisted dealers in the past when lines change.

Composite Stocking Essentials PRINCIPIA predicts that composites and cellular PVC will account for 40% of the total value of decking sold within a few years. (All photos by MoistureShield)

Building Products Digest

November 2016

At every lumberyard, space is at a premium, so finding the right lines, colors and sizes of decking products to Building-Products.com

carry can be a difficult task. During the recession, many dealers eliminated decking SKUs due to lower overall demand for building products. However, with increasing market demand, this category is continuing to grow—and the growth trend will likely continue over the next four to five years, especially as materials become harder to get. Manufacturers are working to keep up with growing demand for composites, but many lumberyards make the mistake of starting the decking season without enough product in stock, leaving them to play catch up in the peak of the season. As the old adage says, “you can’t sell from an empty shelf,” so it tends to be the yards that stock product that get the sale. When the customer can consistently depend on you to have the decking in stock they need, you will begin to build your yard’s reputation as “the place” to buy from. This means higher sales volumes. And, knowing they can count on you to have product means they may be willing to pay a bit more to avoid the hassle of driving or calling all over town. The result is increased sales dollars and increased margins. Ensuring you understand your customers’ needs and your market’s demands is the easiest way to identify the perfect balance of stocking and special order SKUs. In general, grays and browns dominate composite color selections throughout the U.S., so a great place to start is to keep these colors in stock, with other options available by special order. You may find that a particular color or variation sells better in your area, though. For instance, if you’re on the West Coast, a version of a redwood would be a smart addition. Composites tend to be available in 12, 16, and 20 foot lengths, so stocking a middle ground (around 16 ft.) is a great way to compromise on the number of SKUs you’re holding while still meeting most product needs. One exception is in bigger cities, where stocking shorter lengths may be warranted as decks tend to be smaller. Because composites come in many colors and sizes, a good strategy is to stock the most popular ones and special order the rest. To do this most effectively requires working out a good system with your distributor to ensure quick and timely delivery to meet the customer’s schedule. Beyond decking, choosing which Building-Products.com

railing to stock is a bit trickier. Black aluminum railing is the fastest growing segment nationwide because of its sophisticated look and ability to blend into views, while railing tastes vary substantially by region. In some areas homeowners prefer white railing for a Colonial look or wood tones for a rustic look. At the end of the day, it all comes down to personal preference, so it is essential to pay close attention to the trends in your area.

Things to Consider Over the Course of the Year Your stocking strategy will ideally change throughout the year given the seasonal nature of outdoor living projects, so you should take seasonality into account when evaluating your inventory needs. Off-season: As decking season wraps up, it’s natural to reduce decking stock as few people will be in the market for outdoor living projects in late fall or winter. A wise use of this down time is to review the past decking season’s sales history—which brands, colors and sizes sold best— and to conduct market research for the coming year. Study the industry trade publications and stay in touch with your manufacturers to get a jump on what new products they plan to introduce. Be sure to talk to your local decking distributor; they are a great source of information as they are in contact with what’s happening at other yards in your area. During decking season: Even if

customers aren’t actively building during deck season’s earliest months, many of them will be visiting yards to see which products are available and to plan their projects. And as mentioned, since you can’t sell from an empty shelf, the first part of the calendar year is the time to be building your inventory for the coming rush. As decking season progresses, it’s crucial to remain vigilant to evolving customer needs. In some seasons dealers have stocked up on reds early, for example, then customer tastes switched to another color later in the year, leaving the dealer with a lot of unsold inventory. Pay attention to such shifts and be ready to change your stocked mix year over year.

What’s In Store for the Future? Looking ahead, the decking industry is going to see a lot of technology changes as manufacturers make products that are better targeted and adaptable to each customer’s needs. The industry is no longer focused solely on what manufacturers can make, but on what customers really want. As a result, it will be more important than ever to stay aware of what’s important to your customers when it comes to their outdoor living spaces and to ask your manufacturers how they’re adapting to this trend. – Brent Gwatney is senior VP for sales & marketing at MoistureShield composite decking. He can be reached at brentgwatney@moistureshield.com.

GRAY AND BROWN deck boards continued to be popular thoughout the U.S. November 2016

Building Products Digest

MARGIN Builders By Sydney Gitelis

Decked out showroom How one lumberyard wowed customers by bringing products to life

where building product companies are manufacturing a wide variety of products, making a product stand out amongst competitors is a difficult feat for distributors. When the customer is flipping through one of the many catalog options to look for a specific product or holding a small sample, it is nearly impossible to make the product feel real or come to life. McCabe Lumber knew that they N A WORLD

had to take their sales technique a step further in order to really grab the customer’s attention. McCabe is a family run business based in the Cincinnati area compromised of five brothers who operate a showroom that was built in 2004. The family business started as a hardware store and was previously known as McCabe Hardware. Through the transition from the hardware industry to becoming a building products distrib-

MCCABE LUMBER rep Steven Tepe takes a customer through the range of accessories available for his deck project. (All photos of courtesy CPG)

Building Products Digest

November 2016

utor, the brothers knew that to take their business a step further, they would have to make some drastic changes. Merely looking at decking materials on a page would not suffice; they wanted their customers to come in, visualize the end result and picture building their project once in the midst of the full-scale materials. Working with a lot of trendsetting brands in the industry forces McCabe Lumber to constantly display new concepts. In the Building and Remodeling Showroom, McCabe Lumber customers can see the latest in interior/exterior doors, windows, entry systems, decking materials, siding, moulding, locksets, stair parts, columns and much more. They even feature a real house to show off their featured products and make the products a reality for customers. “We decided to build a showroom because we felt the need for customers to see the products they are interested in actually built out,” said Jerry Tepe of McCabe Lumber. “Whether it’s new building or remodeling customers, the ability to see and feel the products that are on display as opposed to a sample form or in literature, makes all of the difference.” When opening the showroom in 2004, the McCabe team did not only commit to the showroom, but they also committed to a concurrent marketing campaign. Through regional home and garden shows, alongside print and radio ad, the McCabe team promoted the existence of the showroom. With the ongoing showroom Building-Products.com

promotions, consumers became aware that this is THE place to make decisions on top products if they are in the market to build or remodel. Once McCabe had the attention of the consumer, they focused on truly creating a visually appealing and informative showroom in all aspects possible. Tepe found the most important components are the quality of the display. Right behind that is the graphics that go along with the display. “You have to look at the overall environment. How is the lighting? Is everything properly lit? When you showcase something, the customer has to feel that they are in the actual atmosphere to really bring the product to life,” said Tepe. When the customer steps up to a product to take a deeper look, it is important that they see the different options that are available. “We display color, style and brand combinations,” said Steve Billingsley, inside sales manager of McCabe Lumber. “It’s important that customers are aware of their options and what they will look like together.” In order to make sure everything is done to their standard, the McCabe team builds everything custom in their showroom. Without using a manufacturer’s prebuilt display, the team can ensure that the display and graphics are specifically made to feature the brand and the product has the McCabe Lumber feel for continuity. With professional graphics and a stellar presentation, the Building and Remodeling Showroom ensures that the products not only stand out, but the displays remain consistent. Beside the matter of presenting products, Tepe stresses the importance of always updating materials and design to match popular styles and trends that are in consumer demand. With decking and railing, a currently trending category in Cincinnati, the McCabe team makes sure to refresh the display and graphics annually. For example, TimberTech released the Tropical Collection of their composite decking this year, featuring shades like Amazon Mist and Caribbean Redwood. The McCabe team made sure to display these new TimberTech color combinations along with existing color options to show a nice variety for guests. With entry doors and windows, the displays are rotated every two years. It’s important to Building-Products.com

EACH OF THE showroom’s self-contained display units offers samples, literature, and installed components, including decking, railings and lighting.

keep everything feeling new and exciting to make sure the consumer is getting the most out of their visit, and in the twelve years since the showroom opened, the customers have continued to remain wowed. “Our contractors and builders use it as a place to come with their customers and help them pick things out,” said Billingsley. “There are so many options out there that samples usually don’t cut it.” The showroom allows consumers to take a step beyond the page. They can touch it, feel it and see it—zeroing in on the color and texture of the materials they are interested in. The products on the page can be deceiving, but in real life, the customer is able to take the guessing out of the equation. Additionally, the showroom is not only beneficial to consumers, but it is November 2016

also a great tool for the sales team. The display includes a collection of literature, install guides and the physical product. With the collection all in one place, the McCabe sales team is able to speak with a customer without having to walk away from the product. When the sales team does allow the customer some alone time to make a decision, they have all of the necessary items and tools in front of them to make the decision much easier. “We constantly have customers come in and see a product in real life and say, ‘That’s not what it looked like in the brochure,’” said Billingsley. “When customers don’t have to use their imagination, it helps them make a decision regarding what exactly they want and they can know what the end result will actually look like.”

Building Products Digest

PRODUCT Spotlight By Mike Descoteaux, DuraLife Decking & Railing

Dealers bolster sales with composite decking I

of one of the worst economic downturns in U.S. history, indicators show that the American housing market is on the rebound. Reuters recently forecast that “house price gains” are expected to “remain relatively steady for this year and the next,” while Forbes reported that “housing starts rose last year for the sixth consecutive year.” Unfortunately, blanket statements such as these are little consolation for the thousands of struggling dealers, distributors and contractors still trying to catch up in struggling regional marketplaces. For many of these professionals, profitability is based on increased shares in deeply competitive locales, rather than expanded sales in growing markets. This is especially true for Erie Materials, a leading supplier of building and renovation products to professional contractors with 10 locations in upstate New York and northeast Pennsylvania. “The building and remodeling business in this area has been in decline for the past eight years,” says Steve Syron, Erie Materials’ VP of sales & marketing. “To survive and grow, we’ve invested heavily in the training of our support and sales staff as well as the distribution of the highestquality materials and products. We have 34 territory managers that are expected to make eight to 10 customer calls daily. We specialize in knowing every player in the market and their disparate needs. Much of the competition has been weeded out over the past decade. But, the ones that remain survived for a reason and are well entrenched with a loyal customer base.” Another valuable asset, according to Syron, is the sale of manufactured brands that are typically not found in retail settings and sold exclusively by his company. This has provided a proprietary advantage in one of the few growth areas served by Erie Materials: the outdoor living space. “More people are staying put because they either can’t afford to move or can’t find a home that is move-in ready,” explains Syron. “Why move to a new place and then spend all the added time and money making it their own? “While most facets of remodeling are flat, the outdoor living segment is on the rise. The building of new decks is the one area where we’ve seen a steady 5% to 10% increase in annual sales over the past decade.” As for the decking itself, Syron also sees many of his contracting customers moving away from treated woods to the latest composites, due to their low-maintenance N THE AFTERMATH

Building Products Digest

November 2016

NATIONALLY composite decking sales are on the rise, offering distributors, dealers and contractors another value-added tool for increasing profits in many of our country’s still-stagnant markets. (Photos by DuraLife)

qualities, growing array of colors and finishes across numerous price points, and ever-increasing assortment of accessories, such as easy-to-install railing systems. In fact, Erie Materials believes so strongly in this category that it works “regularly and ardently” to educate contractors about composite decking benefits and the techniques for informing homeowners and closing sales. This includes supplying them with deck board samples from DuraLife Decking & Railing, one the few decking (Continued on page 52) Building-Products.com

INDUSTRY Trends By Marilyn Thompson, APA

Optimize design values with LVL beams, headers I

where the environmental footprint of building materials must always be considered, choosing the right products and sizes is a key component in value engineering. Engineered wood beams are an ideal option because they are manufactured to provide the efficient strength and design values while optimizing forest resources. Thanks to their ability to meet size and strength requirements, engineered wood beams are ideal for a variety of beam and header applications. Specifying the right-sized structural members for the application is both cost-effective and resource-efficient. N AN ERA

Optimize Bending Strength & MOE An important design consideration is the bending strength and stiffness for window and door header installations. Allowable bending stress is indicated as an Fb value, such as 2400Fb, 2900Fb, 3000Fb, or 3100 Fb. In longer beam installations, deflection is the critical property. This is measured as the modulus of elasticity (MOE). Typical MOE values for engineered wood beams range from 1.8 to 2.2 x 106 psi, usually indicated as 1.8E to 2.2E. The ideal stiffness of engineered wood beams for most window and door header applications is 1.8E, 1.9E, and

IN THE LAST DECADE, production of LVL beams and headers has grown significantly. Today, LVL products in 1.8E, 1.9E, and 2.0E are widely available from multiple manufacturers and building material distributors throughout North America. (All photos courtesy APA)

Building Products Digest

November 2016

Building-Products.com

2.0E. Specifying beams with a higher MOE value, such as 2.2E, for typical header applications is often over-design that results in excessive use of the wood fiber. A key component in value engineering is choosing the right size beam. Engineered wood beams in 1.8E, 1.9E, and 2.0E are the most resource-efficient and cost-effective choice for the majority of beam and header applications.

Laminated Veneer Lumber: Predictable Performance, Solid Value Laminated veneer lumber (LVL) is one of several engineered wood products in the structural composite lumber (SCL) family. It is produced by bonding thin wood veneers together moisture resistant adhesive to form a large billet. The grain of all veneers in these billets is parallel to the long direction. The LVL billet is then sawn to desired dimensions, depending on the end-use application. Because LVL is made with scarfed or lapped jointed veneers, it is available in lengths far beyond conventional lumber lengths. LVL is virtually free from warping and splitting.

Choosing the Product That’s Easy to Source In the last decade, production of LVL beams and headers has grown significantly. Today, LVL products in 1.8E, 1.9E, and 2.0E are widely available from multiple manufacturers and building material distributors throughout North America. One of those distributors is Eastern Engineered Wood Products, a wholesale distributor in the Mid-Atlantic and

Building-Products.com

LVL BEAMS meet size and strength requirements, and are ideal for a variety of beam applications. Specifying the right-sized structural members for the application is both cost-effective and resource-efficient.

Northeastern U.S. that stocks a variety of engineered wood products, according to the company’s president, Todd Lindsey. “LVL’s strength, stiffness, and long lengths allow for ease of use on the job site. Combined with its economy and availability in commonly used sizes, LVL is a logical and versatile material choice for beams and headers in many home designs,” said Lindsey. – For more information on LVL, visit www.apawood.org.

November 2016

Building Products Digest

COMPETITIVE Intelligence By Carla Waldemar

Wizard of Odd Y

The Wizard of Oz was an unreal fantasy? Well, we’re back in Kansas for this story, and the obstacles little Dorothy faced seem trifling compared with the scenario facing Ken Kropf when he took over the lumberyard in tiny Hesston, Ks. (population 4,200). The business had belonged to his grandfather, an absentee-owner living in Oregon. Turns out Grandpa was far from a hands-on operator, who rarely visited, never mind even picking up the phone. In dealing with the yard upon his demise, Ken’s mother demurred, so it fell to her son to garner more stock and assume ownership. Oh, he’d visited the yard—once—as a teenager, when they held a banquet for Grandpa, who refused to address the attendees. Ken had worked as a pilot, a tree farmer, and had even run a heating company when, on the day he was hired, the boss pulled out. However, the longtime—and excellent—manager of the Hesston yard was retiring—at 74—so Ken’s first mission was to find a replacement to fill the man’s shoes. He did what any smart new owner would do—show up and ask its 44 employees individually whom they’d recommend to take over. But this was Kansas, a land of ultra-modest folks. “‘I . Will. Not. Say,’ they told me. No one would single anybody out. There was no advice, after 40-some years. Instead, they screamed in horror at being asked to play favorites. So… I’m still here.” That was in 2008. Ken inherited a spacious showroom across the street from the main building, built in 1990 OU THOUGHT

Building Products Digest

following a destructive tornado, that tripled the size of the operation. “But when I walked in it, I saw that only two-thirds of that space was being used,” he says. “So I added flooring, carpeting, to fill up the space. Customers had asked for it, vowing they’d otherwise have to do business with our competitor.” “I replaced some personnel and made gradual changes to improve things,” Ken delivers as the understatement of the month. “One advantage we had: Our lumber was cut in Oregon and shipped to us directly in boxcars.” Kropf already had a shop that built trusses, and another facility fabricating boxes and crates.

However—now the fun starts—“they were enemies of each other, wouldn’t help each other out. If someone was sick in one operation, no one would transfer over. Also, there were departments with only two people, a manager and assistant manager. But they wouldn’t co-operate with other departments.” Same with the lift trucks (Kropf Lumber owned eight.) “One day when I climbed on one, I was told, ‘It’s my lift truck! Nobody else can touch it!’ It’s the owner of the company they’re screaming at. It’s my company! So that guy left on the spot. I was also told we needed more lift trucks because no one could use anyone

KANSAS lumberyard owner Ken Kropf Lumber, Hesston, Ks., faced a big challenge when he assumed responsibility for the family business eight years ago: finding a successor for the longtime manager. He’s been running it ever since. November 2016

Building-Products.com

CUSTOMERS have responded to the changes in droves.

else’s. ‘Hey,’ I said, ‘we’ve already got eight!’” As mentioned, a street divides the seven-acre site. “I had a salesman who had never crossed over and entered the other building. ‘We don’t tell people what to do across the street,’ he explained. It was a little fiefdom—so we needed some attitude adjustment. “Many of the staff,” Ken explains, “were really good people, and we offer excellent service. The former manager did deliveries himself when needed and would come in on his day off. However, after I took a chain saw home one night, I was yelled at by an employee: ‘I was gonna take that home for my neighbor!’ Tools were missing left and right. “This is going to stop,” I said. ‘No, it isn’t,” he told me. (He left, too.) Then there’s the Sheetrock customer left standing in the yard with no one to serve him because the two yardmen were on break together. “I explained about staggering the breaks and was told, ‘Can’t talk us into that.’ That customer, they said, was deliberately left to cool his heels because ‘the man needs to learn patience. We make him wait 10 minutes.’” The staff actually appreciated the select firings. “They’d tell me, ‘Thank you so much. We were always scared of that guy.’ Only 10% of the employees were the problem. The others were afraid. It was,” he gasps, “the culture. “But attitudes changed dramatically. When that truss builder fought the idea of helping out in the yard, I said, ‘We’ve got to expand you!’ Yet he fought against driving a truck, the job everybody craves. (When I was 14, I loved driving the truck in the Oregon lumberyard.) So I encouraged him:’ Try it! Expand! Take risks!’ “I told the staff, ‘It’s time to grow, and I will show you how.’” And why: They’d always received a Christmas bonus but didn’t realize it was based on sales. “I hired additional outside salespeople and expanded the window business.” People began to appreciate an owner who was on the spot. Building-Products.com

And, you know what? It all came together. It worked. “We expanded cabinets and windows dramatically. Lumber sales grew, too. We’d always sold really goodquality lumber; we charge a little more, never tried to be lower-price. Other yards couldn’t compete with us on quality and service. We had the first boom truck, and roofers loved it. Roofing sales went from $50,000-$60,000 to $300,000. Lots of demand because of hail damage. Overall, sales grew 20% that first year, in 2008, simply by doing things a little different. And the past two years both were up 20%, too. All it took was minor tweaking” Then, nearby, catastrophe struck. In February at Excel Industries, employer of 800, a wild guy walked in, shot and killed four people and wounded 14 others. Time, Ken figured, to initiate an emergency plan for Kropf. He met with a state police expert who specialized in mass shootings and weighed questions such as “Should we evacuate to the police station?” A: No, there’s a chance it might be bombed. And, the expert counseled, do not put up a gun-free zone sign: Keep the bad guys guessing. If people ask you if you keep a gun onsite, your answer is: I’m not going to say. Again, keep ’em guessing. The cop’s advice: Keep hornet spray under the counter for cashiers. The number-one thing these pros teach is: run. Try to escape. If you can’t, then hide. As a last resort, fight back (the hornet spray). Call people on cell phones. With a death threat—such as may happen if someone has been fired—don’t try to talk; you can’t reach a sociopath. Typically, he’ll walk back, kill the boss, then kill employees. “The police taught us a lot of things that never would have occurred to me,” Ken testifies. Insurance agent? Not much help: “We have nothing that applies to shootings.” Moving on from that tragic event, the future looks, well, mixed. “Lots of competitors in Kansas have gone out of business, sad to say, when the wheat and corn prices collapsed. Oil stopped, too, and Boeing—a huge employer— pulled out. But we still have a huge industrial base for a town of 4,000—Cessna, LearJet, and farm equipment. When the recession hit, Kropf, like many others, sustained itself via remodeling jobs as new starts came to a halt. “Also, the addition of carpeting has had a huge impact—although we were told not to sell it, that that business belonged to somebody else, a sacred cow. However, I did decide not to start a rental service which could have put two other outfits out of business.” Disgruntled folks (ex-employees?) still keep feeding the rumor mill, telling anyone who will listen that Kropf is about to fold. But Ken is prepared to stick it out: “I do the best I can. Things I can control, I control. Things I can’t, I can’t. Here, the quality of life is a hundred times better than anything I’ve experienced anywhere else in my life. They’re honest people, not like in Oregon. My wife loves it here, too, the friendliness. I could go back to raising Christmas trees in Oregon again, so I’m not in it for the money!”

Carla Waldemar cwaldemar@comcast.net November 2016

Building Products Digest

OLSEN On Sales By James Olsen

Buy signs and openings S

a mystery. How does the customer decide? What makes them say yes to one salesperson, while not giving others the slightest consideration? If the buyer has a rotation of suppliers, who gets how much of the business? Who is first, second, third on the list? Who (almost always the number one supplier) gets last look at the business? Buyers will tell us they give the business to the lowest bidder. What buyers don’t tell us, because we don’t ask, is how that supplier got to be the “lowest bidder.” When we listen to a conversation between a long-term salesperson and their customer there doesn’t seem to be much “sales” going on. These relationships are built on years of business; great deals and great years mixed in with things that needed to be fixed, and were, by the salesperson. Favors have been asked for and granted on both sides. Absolute trust is the relationship we are working towards with all of our customers and suppliers. Building prime-supplier relationships take time and effort and even then, many whom we spend time and effort with will not accept us as their number one or even top three supplier. These relationships take commitment on both sides. Even though a customer may like us and appreciate our expertise, they cannot have two “number one” suppliers. Salesmanship matters most when we are working with customers where we are not the number one supplier. We need to listen—intensely—to the words and phrases that are clues and openings to business and sell into them. Master Sellers are the prime vendor to some accounts. But they’re also excellent at selling accounts where they’re not number one. Master sellers are second and third with a lot of accounts. They get there through salesmanship. They stay there and move up because of integrity and longevity. ALES CAN SEEM

Buy Signs & Openings Examples: Customer: “I’m pretty well stocked up for now.” Us: “When you say ‘pretty well,’ what haven’t you covered?” Customer: “I’m OK for now.” (There are two openings here: OK and for now.) Us: “Right. So for now we’re OK. What are we going to need in a couple weeks?” Customer: “I’ve got most of my needs taken care of.” Us: “Great, so what’s left to take care of?” Customer: “I’m basically covered for now.” Us: “OK. We’ve got the basics covered. What else do we need to take care of? Customer: “I think I’m OK for right now.” (Three openings: think, OK and right now.)

Building Products Digest

November 2016

Us: “When you say ‘you think,’ are there any need areas that need to be covered?” Customer: “I’ve got to check my inventory.” Us: “Great. You’re at your desk, right? Let’s check it right now.”

The Turn-Around – No Free Questions Questions are cries for help, otherwise known as buy signs. The majority of sellers are “Information Dispensers.” Example: Customer: “How many of those can you ship in August?” Info Dispenser: “We can do three.” Customer: “OK. Thanks. I’ll get back to you.” Master Sellers never give an answer without asking for something in return. It is up to the salesperson to develop a “give-and-take/quid-pro-quo” relationship with the customer. The customer will not do this on their own. This will not change over time. If we act like Information Dispensers and Quotrons, the customer will always treat us that way. Example: Customer: “How many of those can you ship in August?” Master Seller: “We have lots of options. How many do you need?” Customer: “Three or four.” Master Seller: “What’re your order numbers?” Customer: “What’s your price?” Master Seller: “That’s the great part! I’ve already sold five of these to hyper-competitive accounts. I can get those to you for $450/MBF. What’re your order numbers?” Customer: “Put those on my J-1, J-2, J-3 and J-4.” The overwhelming fear of the bottom 80% of sellers— who are “fighting” (waiting) for the bottom 20% of the business pie—is being too pushy. This fear keeps them from handling these exchanges in a way that is more advantageous for them. Sellers who struggle will fumble, ignore and walk by these openings on every call. Master Sellers get the exact same objections, obfuscations and questions as their lower performing brethren, they just handle them differently. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

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SELLING with Kahle By Dave Kahle

Dealing with customers’ time constraints and preparing for each sales call. Gone are the days when you could just “stop in.” Rather, make sure that you have at least three things prepared for every sales call: • a specific objective—what do you want to accomplish in this call? • an outline of how you’re going to accomplish that objective, and • all the necessary tools you’ll need to do it. That way, the actual time that you spend with your customers will be more productive. Your customer will appreciate your organization and your respect of his time, too.

“M

Y CUSTOMERS DON’T have as much time to spend with me as they used to.” That’s a comment I’m hearing more frequently in my sales seminars. Your customers used to be able to spend more time with you. But lately it seems as if they’re on tighter schedules and are harder to see. You just can’t spend as much time with them as you’d like, because they’re pressuring you to move on. This is a real Information Age issue. You know how confused and pressured you feel these days. Your customers feel the same way. We all have too much to do and not enough time in which to do it. Time, more than money, is the precious commodity of the Information Age. This development is truly ominous because the implications strike to the heart of your ability to perform for your company. In sales, the face-to-face, person-to-person interaction with your customer is the heart of your job, the core of the value you bring your company. Here’s how to attack this challenge. First, remember to respect your customers’ time constraints. If you try to overstay your welcome, you’ll only succeed in making him/her more irritated with you. Do unto him as you would have him do unto you, if you were in his place. Protect the relationship. Then, focus on making the time that you do have with him more productive for both of you. Think of the issue being quality time, not quantity time. Here are three strategies that will work for you.

1. Focus on the quality of the time you have with your customer. If you’re not going to have as much time in front of the customer as you'd like, then you must concentrate on making the time that you do have as valuable and productive as possible. That requires you to spend more time planning 20

Building Products Digest

November 2016

2. Set an agenda—talk in terms of your customer’s needs. Begin every sales call with an agenda. Tell your customer what you want to cover and how you’re going to proceed. Mention the needs and objectives in which he is interested, and explain how you’re going to address them. This relieves him of the worry that you’re going to appropriate his time unnecessarily, and allows him to focus on you. 3. Always have something of value to discuss. This a longer-range strategy. As you consistently hold to this principle, over time you’ll build up a certain expectation in the customer’s mind. Don’t expect an immediate payback from this strategy—stick to it for the long haul. Think of the time that your customer does spend with you as an investment by the customer. Put yourself in his shoes. Is he gaining something of value from you in exchange for his investment of time? In order to generate that perception in your customer’s mind, make sure that every time you see him, you have something of value to share or to discuss with him. That means something in which the customer is interested. If you have nothing that the customer will think is of value, don’t take his time. Wait until you do have something. After a few such calls, your customer will come to respect you and look forward to your calls, knowing that you’re not there just to work some agenda of yours, but rather he’ll come to expect to gain something from your sales calls. You’ll find it easier to make appointments and get time with your customers when you’ve built in them the expectation that the time spent with you will be well worth the cost of it. – Dave Kahle is one of the world’s leading sales authorities and author of 12 books, including How to Sell Anything to Anyone Anytime. Contact him at dave@davekahle.com. Building-Products.com

DEALER Briefs Clay County Lumber & Supply opened Oct. 17 at the former site of Fullington Lumber , Clay Center, Ks. (Vernon McGee and Nicole Liby, owners; Mike Clark, store mgr.).

Dealers Building Supply Corp ., Indianapolis, In., has been acquired from Mike and Jeff Roache by The Firefly Group and Kocolene Development Corp.

Mabel Lumber, Mabel, Mn., has been opened by longtime contractor/ carpenter Orel Tollefson and son Adam. Blair Ace Hardware, Blair, Ne., will be opened in early January by Cathy and Stephen LeGrand, with a 12,000-sq. ft. showroom and 2,000 sq. ft. of outdoor space. The city lost its longtime Ace last year, with the retirement of local operator Frank Reyzlik.

Hoekstra’s True Value Hardware, Kalamazoo, Mi., began an eight-week liquidation sale Oct. 13. Co-owner Phil Ippel, who was unsuccessful finding a buyer for the 150-year-old store, is retiring.

Crown Point True Value Hardware , Crown Point, In., has been opened by Al Bunge, operator of two True Values in Cedar Lake, In. The 12,000-sq. ft. store is co-owned by Al’s brother Jeff and son Jake, who serves as manager.

Luhrs True Value opened store #4 in Lake Wallenpaupack, Pa., managed by Keith Luhr. Orchard Supply Hardware opened its first store outside the West— a 30,000-sq. ft. store with 7,000-sq. ft. nursery in Fort Lauderdale, Fl., Oct. 25. Openings in Weston, Deerfield and Coral Springs, Fl., will follow shortly.

Habitat for Humanity is adding a 10,000-sq. ft. ReStore in Egg Harbor Township, N.J. Sallisaw Lumber, Sallisaw, Ok., was honored as Member of the Month by the local Chamber of Commerce. Anniversaries: Michigan Lumber Co., Flint, Mi., 100th.

Building Products Digest

Guardian Takes Over Hawkeye

Midwest Yards Get New Owner

Guardian Building Products, Greenville, S.C., acquired Hawkeye Building Distributors, Rock Island, Il., from founders Donald DeWulf and Carl Stahler. The partners will stay on to ease the transition. Hawkeye, launched in 1981, operates a millwork division in Rock Island and additional DCs in Chilicothe and Joplin, Mo.

Pro yard Glenbrook Lumber & Supply, Oakdale, Mn., and sister wall panel/panelized foundation manufacturer EdgeBuilder Wall Panels, Prescott, Wi., have been acquired by construction investment firm ATRM Holdings, St. Paul, Mn. ATRM Holdings, which also owns KBS Builders and Maine Modular Haulers, will operate the acquisitions as wholly-owned subsidiaries, collectively referred to as EdgeBuilder, Inc. The two facilities are 30 miles apart and headed by a common management team, led by GM Scott Jarchow.

CNRG Expands 5 Divisions Central Network Retail Group has been busy growing five of its divisions—relocating two stores, opening a new one, acquiring another, and planning a new opening for early 2017. CNRG has purchased Central True Value, Moncks Corner, S.C., from the Housand family and is converting it to a Marvin’s Home Center. Earlier this year, a new Home Hardware Center in Monroe, La. In recent months, the chain moved its Town & Country Hardware in Chapel Hill, N.C., to North Chatham Village and its Elliott’s Hardware in Dallas, Tx., to a more visible location. Finally, Parkrose Hardware number four is under construction in Vancouver, Wa., anticipated for a first quarter completion.

Beaver Adds 2nd True Value Busy Beaver Building Centers, Pittsburgh, Pa., has acquired Latrobe True Value Hardware, Latrobe, Pa., from Francis and Gertrude Freedman. The Freedmans, who founded the store in 1983, are retiring. Most of the staff, including GM Al Egner, will remain. It will go by True Value of Latrobe and will be remodeled and expanded by the spring. It becomes Busy Beaver’s 18th location and second True Value store, following the July 1 opening of True Value of Moon Township, Pa.

Westlake Adds 2 Stores Westlake Ace Hardware, Lenexa, Ks., opened two new locations Oct. 10—one its tenth in Texas, the other its twentieth in the Kansas City, Mo., metro area. In Carrollton, Tx., its new 15,000sq. ft. store will feature traditional hardware products, as well as pet care, outdoor living, BBQ product, and a large garden center. A new 15,500-sq. ft. facility in Overland Park, Ks., will offer a similar assortment. November 2016

Tennessee Dealer Goes Pro Youngblood Builders Supply, South Memphis, Tn., held a grand reopening last month to show off its newly remodeled 10,000-sq. ft. store and five-acre lumberyard—and to introduce new owners Rick and Don Youngblood. The brothers purchased the former Hyman Builders Supply last from Billy Hyman, who ran it for 51 years. This past summer, with help from supplier Orgill, they completely remodeled and remerchandised, doubling the number of inventory items to more than 10,000. The expansion was an effort to inprove service on the pro market, according to general manager Dan Fuller.

Weyco Upgrading Millport Weyerhaeuser Co. announced plans to upgrade its softwood lumber mill in Millport, Al., over the next several years, to improve cost competitiveness and long-term mill viability. The changes will also add jobs and expand product offerings. Since 1973, the Millport facility has produced 2x4 8-ft. studs for the residential and commercial construction industry. The planned upgrades allow the facility to become a fulldimensional lumber mill capable of producing boards up to 2x12 and 20 ft. lengths.

Arrow Inks Lease-Back Consolidated Lumber, Glencoe, Mn., has sold 13 of its properties to a REIT, but will continue to operate the on-site Arrow Building Centers through a long-term lease-back. The $14.5-million deal, which covers 3 million sq. ft. of land holding more than 300,000 sq. ft. of buildings, contains periodic rent increases and multiple options for renewal. Building-Products.com

HAVE IT ALL IN ONE HAUL. One shipment from Great Southern Wood gets you so much more than

YellaWood® brand pressure treated pine. Contact your YellaWood® representative to see which brands are available in your area.*

YellaWood® brand pressure treated products are treated with preservatives (the “Preservatives”) and preservative methods, systems, and technologies of unrelated third parties. For details regarding the Preservatives, methods, systems, and technologies used by Great Southern Wood Preserving, Incorporated, see www.yellawood.com/preservative or write us at P.O. Box 610, Abbeville, AL 36310. Ask dealer for warranty details. For warranty or for important handling and other information concerning our products including the appropriate Safety Data Sheet (SDS), please visit us at www.yellawood.com/warranties or write us at P.O. Box 610, Abbeville, AL 36310. YellaWood® and the yellow tag are federally registered trademarks of Great Southern Wood Preserving, Incorporated. All other marks are trademarks of their respective owners and are used with their permission. *Availability varies by region. YellaWood® available in all markets.

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Conifex Restoring Arkansas Mill Conifex Timber, Vancouver, B.C., is refurbishing the former Georgia-Pacific sawmill in El Dorado, Ar., hoping to begin production by the end of June 2017, according to site manager Robbie Hanry. Hanry was plant manager when G-P shuttered the facility in 2008 and has been leading efforts to restart it ever since, including attempts to convet it to a wood pellet plant in late 2009. Conifex purchased the mill in summer 2015.

Stanley Picks Up Irwin, Lenox Stanley Black & Decker, New Britain, Ct., has agreed to acquire Newell Brands’ tools business for $1.95 billion. Newell’s tool brands are Irwin, Lenox, Hilmor and Dymo.

SYP Sawmill Coming to Alabama A new company, Two Rivers Lumber Co., will invest $65 million building a southern yellow pine sawmill in Demopolis, Al. Construction is set to start in January 2017, with production beginning in September 2017. The facility will have an annual capacity of 200 million bd. ft., initially employing 55, but ramping up to 95.

SUPPLIER Briefs Fairway Building Products, Mount Joy, Pa., was renamed Fairway Architectural Railing Solutions. Pollard Lumber Co., Appling, Ga., lost a dry kiln in an Oct. 3 fire.

QUICK-LOOK infographic (upper) shows, while new technical guide (lower) spells out how to specify treated wood under the revised AWPA use categories.

Weyerhaeuser Distribution has expanded its availability of ClipStone mortarless stone veneer products to its distribution centers in Atlanta, Ga., and Jacksonville, Fl.

Tools for New Treated Wood Rules Western Wood Preservers Institute is offering two new tools to help specify pressure treated wood under the updated American Wood Protection Association use categories. A colorful new infographic illustrates the typical uses of preserved wood in a residential setting. Developed through the AWPA Education Task Group, it provides guidance in selecting the right preserved wood for common uses around the home. In addition, a new four-page PreserveSpec technical guide provides more detailed information on specifying the right treated wood, including use category definitions, service conditions, preservatives, and required rentions for specific applications. The last page is the previously-mentioned infographic for typical residential uses. The PreserveSpec guide is the first in a new series of guides to assist those specifying preserved wood products for any project. Both the infographic and the technical guide are available as PDF downloads from Western Wood Preservers Institute’s online technical library, at wwwpinstitute.org.

Building Products Digest

November 2016

TAMKO Building Products , Joplin, Mo., has launched clean new logos for its EverGrain and Envision composite decking lines. Cardinal Building Products, Leola, Pa., will distribute the entire KOMA product line throughtout the Mid-Atlantic. Parksite, Batavia, Il., is now offering the new Tyvek Protec roofing underlayment line.

DuPont

USG Corp., Chicago, Il., was presented the National Safety Council’s 2016 Robert W. Campbell Award for outstanding environmental, health and safety programs.

Manufacturers Reserve Supply, Irvington, N.J., has redesigned its website, www.MRSLumber.com. L.E. Smith Co., Bryan, Oh., has unveiled a new corporate logo and website, www.LESmith.com. Wolf Home Products, York, Pa., redesigned its website, WolfHomeProducts.com. In addition, Wolf added the colors Cypress and Silver Teak to its Tropical Hardwoods Collection for both deck and porch. Building-Products.com

MARGIN Builders By William Wickey, LeadGenius

Building quality leads in the construction industry

NDUSTRY ANALYSTS are optimistic about the construction industry: non-residential construction spending is forecast to jump by 8.3% in 2016 and by 6.7% in 2017. With the construction business booming, there are tremendous opportunities for building products companies to expand their customer base. However, competition is coming from every direction—including from Amazon.com and other ecommerce companies. Savvy construction products firms realize they must adopt new marketing and sales tactics to stay fit. This requires going beyond the basics of lead generation and looking at sales lead quality to compete for new business. How do you identify the right potential customers—e.g., ones that are looking to expand their list of sup-

Building Products Digest

November 2016

pliers—so you aren’t wasting time following up on unproductive leads? Solid leads will build your bottom line. Whether you are buying leads from a variety of different sources that sell sales prospect lists, doing your own research, or working with a third party researcher, here is what to look for to make sure that those sales prospects lists have what you need to be successful in your sales efforts.

1. Depth Don’t view a lead as a single data point. Instead, recognize each as comprising a cluster of relevant customer information. First-rate leads combine demographics, firmographics, buying signals, with contact information. We are all familiar with demographics, which include a prospect’s basic personal information such as name, job title, and age. By using that Building-Products.com

data to determine how each lead stacks up against the rest of the target audience, you can personalize messages and segment lists, which will not only drive interest, but also loyalty. What demographics are to people, firmographics are to organizations. Firmographics comprise company information such as annual revenue, capital events, market share, employee count, and growth rate. Companies with substantial revenue growth, for example, may be more receptive to sales calls from building products companies in order to maintain their inventory of supplies. Buying signals are data points exclusive to a company’s optimal customer profile. In addition to detailing inbound activity, a buying signal is anything that hints at a prospect’s receptiveness to your product or service. t could be recent changes in property or company ownership. Capturing buying signals is very valuable and also extremely time-consuming. Because most B2B marketing campaigns are multi-channel, high-quality leads also need multiple types of contact information. To implement and automate a full funnel strategy, you must have correct contact information in every channel—email, snail mail, phone number, Twitter handle, Facebook profile, LinkedIn and perhaps Instagram.

2. Accuracy Both validation and verification are critical—and they are different. Validation is determining if all your fields are filled in, email addresses are formatted correctly, phone numbers have 10 digits, and mailing ZIPs match cities. Verification is making sure data points correlate. Email marketing campaigns falter when names don’t match up with email addresses. Sales reps flounder on calls when your information says the prospect’s annual revenue is $2.5 million, when it’s really $25 million. Your team can allocate time and resources to prospects with the highest probability of success only if it has accurate data. Don't throw away marketing and sales dollars, waste time and squander potential opportunities by using inaccurate or incomplete information.

3. Reliability – Keeping Prospect Lists Current Once you have accurate data, ensure processes are in place to mainBuilding-Products.com

tain it. Reliability is about processes. Lead generation is continuous. The construction industry is a vibrant market, so a list of 100% accurate leads will not stay that way for long. Speed, freshness and a repeatable process for augmenting existing prospect lists are key components of a high-quality lead-generation program. Excellent prospecting also results in a happy and productive sales team.

4. Fitness for Purpose Sometimes, we’re so focused on lead volume we lose sight of the underlying motivation for our lead generation. High-quality leads speed up cycle time, increase productivity, and reduce the total cost of winning new customers. High-quality lead generation programs are reliable, optimized, and customized to your unique marketing and sales processes. Marketing teams are typically responsible for generating as many leads as possible so sales can generate customers. But, even the warmest inbound leads often don’t have the crucial data sales reps need to close a deal. According to Hubspot, 61% of B2B marketers still send all leads they November 2016

receive directly to sales—but only 27% of those will be qualified for a sales call. What marketers sometimes fail to understand is that sending more leads to sales can actually reduce productivity.

Pick Up the Outbound Marketing Pace Now that you know how to evaluate your lead quality, put that information to work. Your competition is intense, and most building products companies find that inbound sales alone will not result in robust revenue growth. So get out there now. A solid outbound marketing strategy relies on continued quality lead generation. Marketing efforts must aim at your most likely-to-convert customers and you must personalize the messaging to connect meaningfully. Quality leads combined with an outbound marketing program will “lay the foundation” for increased business success. – William Wickey leads content and media strategy at LeadGenius, a provider of account-based marketing and lead generation solutions (www.leadgenius.com).

Building Products Digest

THINKING Ahead By Rob Latham, Tri-State Forest Products

How to extend, how to collect I

United States is driven by the granting and receiving of credit. By offering credit to your customers, you’re essentially investing in their company. There are three main components of good credit policies: analysis, terms and collections—but that’s where things get tricky. If you don’t have the proper processes and procedures in place to extend credit and, later, collect on those accounts, your company will quickly find itself in peril. Extending and collecting credit effectively makes your cash flow. NDUSTRY IN THE

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.

Building Products Digest

Analyzing Credit It’s great to have customers, but it’s important to have the right customers. “Just because somebody wants to buy something doesn’t mean you should sell it to them,” says Steve Rhone, president of Weston Forest. In other words, you need to make sure you’re making good choices about who to do business with. There are a few ways to make that determination. Many companies use third-party services to receive financial information on a potential customer. TriState Forest Products, for example, uses Dun & Bradstreet and Blue Book Services. When we get an

November 2016

application from a new customer, we check with Blue Book and/or D&B. They provide credit history so we can see if they are good pay or slow pay, if there are any trends we can observe, and if they are getting better or worse.” In addition to third-party credit checks, many companies require customers to submit credit references. A company’s credit references often provide more current feedback. At Tri-State Forest Products, long-term customers versus one-time sales are also a consideration. Weston Forest also uses outside help to determine who to sell to.

Building-Products.com

A Special Series from North American Wholesale Lumber Association

After the company determines a customer’s credit worthiness, Rhone says, a third-party insurance company— in this case, Euler Hermes—verifies its position. “They have an extensive database of active customers, and they are proactive in letting us know when we are exposed to somebody who is risky,” he says.

Days in Period x Average Accounts Receivable ÷ Net Credit Sales = Days to Collection An aging schedule lets you see what percentages of accounts are delinquent or late. The schedule below is for a company with $200,000 in receivables. Age of Account

Defining Terms Once you’ve decided to extend credit to a company, you must establish the terms of that agreement. This includes the credit period as well as any discounts you may decide to provide in a certain period. For example, you might offer a customer a 1% discount if they pay within the first 10 days. Otherwise, their bill is due in 30 days. The terms of sale would then look like this: 1/10, net 30. Once the terms are agreed to, it’s important to have a policy in place to inform customers of their balances. This is often performed monthly. Pricing and terms go hand in hand.

Collecting on Accounts Receiving the money you’re owed is crucial to keep your business afloat. There are two main approaches to collections: the average collection period (ACP) and the accounts receivable aging schedule. The ACP formula identifies how many days it takes to collect:

Paying Out Commissions At what point in the lifecycle of a sale do your salespeople receive their commission? There are a few different possible times: • Booking • Invoicing • Receipt of partial payment • Receipt of full payment • When project milestones are reached At Tri-State Forest Products, if we deem the account worthy of credit, then we pay the salesman commission based on the transaction regardless of if we’re paid or not.” At Weston Forest, President Steve Rhone says, “We pay our salespeople based on what happens after we’re paid. If we do not get paid in full or if there are any deductions made against a payment or outstanding credit, either with the product or the customer’s inability to pay, our salespeople do not get any commission on those transactions until we receive full payment.”

Building-Products.com

Amount % Total Value of Receivables

0-10 days

$40,000

20%

11-30 days

$80,000

40%

31-60 days

$40,000

20%

61-90 days

$20,000

10%

Over 90 days

$20,000

10%

$200,000

100%

The 5 C’s of Credit Capacity – ability of the company to pay Collateral – other assets of your company that serve as a form of security Capital – the owner’s investment in the business Conditions – the external environment and the intended purpose of the credit Character – a subjective judgment based on references

Collection policies vary from company to company, but it’s important to have a strong grasp on what you’re owed and a clear policy on when to escalate the collection process. At the 60-day mark is when Tri-State Forest Products ramps up the collections efforts to bring in those receivables. We don’t have a lot of bad debt out there, but we do have some we have to work harder on the collect. For the most part, collections are not a typical problem. There are just times where you have to push a little harder. We also apply service charges for past due accounts and place accounts on credit hold so accounts with past due balances aren’t allowed to escalate without manual overrides. We will also leverage new sales to collect past balances. – Rob Latham is vice president of Tri-State Forest Products, Springfield, Oh., and secretary/treasurer of NAWLA.

November 2016

Building Products Digest

Multi-family moves to wood N

UMEROUS MULTI -FAMILY projects nationwide are in the works as construction, especially in urban areas, is showing no signs of slowing down. While this uptick in multi-family living is only growing faster, what’s really worth taking note of is the volume of lumber being used in these projects.

their reach. This is going even beyond multi-family projects, with speculation about the next generation’s skyscrapers being made of wood. According to heavy timber specialist Kris Spickler of Structurlam, not only is wood attractive and warms up the building, “architects really enjoy

being able to use a product that they’ve used for interior spaces, and actually use it for the structure itself.” Four-story multi-family complex Oceano at Warner Center, Woodland Hills, Ca., and three-story complex Galt Place, Galt, Ca., are luxury multi(Continued on page 32)

Why Wood? So what’s with this upswing and why are we seeing a lot more of it? There are a few reasons as to why this could be. Thanks to advances in wood construction, architects are designing buildings out of wood, instead of concrete and steel, in favor of a more environmentally friendly material. Also contributing is the advent of cross-laminated timber, as lumber producers have developed powerful adhesives to assemble massive wood panels with the strength and sturdiness of concrete and steel. Since CLT is made of small planks bound together by a polyurethane adhesive, the revolutionary technology has freed architects to design buildings that were once out of

MORE WOOD: One reason for the jump in higher-rise lumber construction projects is that urban areas are becoming more popular and desired as wood continues to prove more sustainable.

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Building Products Digest

November 2016

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Multi-Family to Wood (Continued from page 30)

family complexes and another example of all-wood, mid-rise construction. Michael Malinowski, president of the American Institute of Architects, has served as architect for many such projects, including Galt Place. He explained that sometimes using wood is a no-brainer, especially with projects like these: “When designing a three-story mixed-use structure and wanting to create the most sustainable and economical building, why would you consider anything but wood?”

Why Now?

Another driving force behind the turn toward wood is a growing awareness among architects and developers about their field’s contribution to climate change. Since our industry takes the lead over others in terms of its impact on the planet and human health, as the demand for more environmentally-sound buildings continues to rise, so will the use of environmentally-friendly building materials. Concrete and steel require enormous amounts of energy to produce and transport, generating more than a ton of carbon dioxide per ton of steel

MULTI-FAMILY living is on the rise in urban cities all over the U.S. Projects like Centerpointe Apartments in Irvine, Ca., are being built to accommodate the high demand. With 766 units, the structure is built primarily of lumber, something that is becoming more frequent.

or concrete. The uptick in multi-family residents is leading to more of a realization that lumber is a viable building material. Projects like these are popping up all over the country, in places where multi-family living and urbanization are becoming more desirable. Atlantic Station, a 138-acre urban renewal, is an award-winning develop-

ment in Atlanta, Ga., that includes condominiums, apartments, townhomes, and single-family residences. Challenged by the developer to build an affordable, high-density project with 75 to 80 units per acre, architect Ron Harwick, of James, Harwick + Partners said, “We knew we could not achieve the economics or reach the targeted density without wood.”

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November 2016

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PRO Group, Reliable Merge PRO Group, Denver, Co., has merged with Reliable Distributors, Chicago, Il., adding 74 distributors and over $2 billion in volume to the group. Founded in 1986, Reliable Distributors built a strong foundation of distributors and suppliers with over 200 distribution centers across the country. Combined with the over $3 billion in sales volume and the 30 member distributors and 350 suppliers of PRO Group, the partnership is poised to provide marketing strategies and program support to help distributors and retailers continue to meet the competitive challenges of the marketplace. “A key benefit resulting from this merger is that infrastructure costs will be spread over an expanded customer base that reduces channel costs and delivers expanded value to the groups’ member suppliers, distributors, and their retail customers,” said Steve Synnott, CEO of PRO Group. “The combination of Reliable and PRO is a big win for independent retailers the groups’ distributors serve.” Offices will be based at PRO Group’s current headquarters in Greenwood Village, Co.

Study Expects Windows to Pick Up, But Patio Doors to Slow Down Residential window shipments increased 0.2% in 2015 with 57.36 million units shipped across the nation, according to a new market study by the Window & Door Manufacturers Association. Looking forward, national growth is expected to increase through 2017 to 4.8% before trailing off in 2018 to 1.9%. In 2015, shipments of sliding patio doors grew by 8% over 2014 on the national level. Annual growth on the national level is forecasted to moderate to 0.5% in 2016, 0.4% in 2017, and then experience a decrease of 2.2% in 2018. Hinged patio door shipments saw a rather flat annual growth rate of 0.9% in 2015. The forecast expects steady declines through 2018, with annual decreases expected across the board in every division. Nationally, annual decreases of 9% are expected in both 2016 and 2017, and an 11% decrease is expected in 2018. Vision area of commercial windows increased 9% to 106.62 million sq. ft. in 2015. In the near term forecast, growth nationally is expected to strengthen in 2016 by 14%, followed by a 17% increase in 2017. The forecast for 2018 calls for still positive growth, but at a slightly slower rate of 13%.

Exchange-A-Blade Marks Milestone To mark its milestone birthday, Exchange-A-Blade has introduced a limited edition 40th Anniversary Blade. EAB Tool Co., Delta, B.C., was launched in 1976, and it remains unchanged today: remanufacture whenever possible, recycle everything else, and deliver superior products and service to the customer. Its 40,000-sq. ft. facility remanufactures over 35,000 blades every year. That keeps 60 tons of steel out of landfills. Its green exchange program, which allows customers to buy a product and return it after use for an exchange credit towards their next purchase, also saves 93 tons of iron ore, 53 tons of coal, 20 tons of limestone, and 4.5 million gallons of water yearly. The power tool accessory maker offers a range of blades, bits, hole saws, abrasives and more, under the Exchange-A-Blade, Stay Sharp, and RazorBack brands.

Building Products Digest

November 2016

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Do it Best brings its best Do it Best’s 2016 Fall Market showcased a number of enhancements that made an already valuable experience even more so for the co-op’s LBM-focused member-owners. The Oct. 7-10 market at the Indiana Convention Center, Indianapolis, In., began with an LBM Industry Update. This new feature brought members together over lunch to learn from Do it Best subject-matter experts about the latest LBM trends. It was followed that evening by an LBM Reception, another new event to provide members with networking opportunities. Members were also able to take advantage of the market’s close proximity to one of the co-op’s lumber reloads for a Lumber Benchmarking Reload Center Tour. The tour showed how they could better evaluate lumber appearance and quality. Perhaps the biggest draw of all was another new attraction open throughout the weekend on the market floor. As part of a yearlong project, Do it Best unveiled the Pro/Tradesman Showcase, which displayed many of

Building Products Digest

LUMBER BENCHMARKING Reload Center Tour provided members an overview of mills attending the market and the opportunity get questions answered by co-op staff and mill representatives.

LBM RECEPTION was meant for show attendees to share best practices, connect with friends, and learn about special buys available to them exclusively at the market.

the 350 new planograms featuring 220 different product categories. The showcase gave members ideas on how

November 2016

they can immediately enhance their showrooms and drive more sales through better merchandising.

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November 2016

Building Products Digest

n 37

AssociAtion Update Florida Building Material Association cancelled its annual convention slated for last month in Kissimmee, Fl., due to intense weather conditions. FBMA is reminding members to save the date for next year’s show Oct. 4-6 at Rosen Shingle Creek Resort & Convention Center, Orlando. Mid-American Lumbermen’s Association’s Fall Fling will take place Nov. 10-11 in Branson, Mi. Midwest Building Suppliers Association is preparing for a supervisor and reasonable suspicion training course Nov. 9 at Indiana Testing, Inc., Indianapolis, In. The compliance education is required by the Department of Transportation, helping managers to keep out of harm’s way and protect their bottom lines. Northwestern Lumber Association brings Casey Voorhees to Altoona, Ia., Nov. 29-30 to lead a blueprint reading and material take-off workshop. At the Quality Inn in Eagan, Mn.,

Building Products Digest

members will take part in a business management training course Dec. 6 and a yard and delivery managers workshop Dec. 7-8. Lumbermen’s Association of Texas & Louisiana is hosting a series of estimating, blueprint reading, and material take-off workshops Nov. 1517 at Menger Hotel, San Antonio, Tx. Casey Voorhees will leading the courses, after recently revising the materials to include instruction for all levels of estimators. Nov. 15 is a one-day program providing an introduction to residential construction methods, blueprint reading, and estimating. The next two days, students will go through the process of completing a material takeoff of residential structures. Northern Retail Lumber Association is hosting NYS Energy Code Basics for Residential Building Training Nov. 10 at its headquarters in Rensselaer, N.Y. New York adopted a new version of the energy code, which went into effect Oct. 3, and the

November 2016

changes are said to be substantial, according to NRLA. The course will help code officials understand the new energy code requirements in a small group setting with ample opportunity for questions and discussion. NRLA is also hosting a roundtable Nov. 13-15 in Gloucester, Ma. Affiliate activities include an Eastern New York Lumber Dealers Association board meeting Nov. 8 in Rensselaer; Western New York Lumber Dealers Association’s annual meeting Nov. 11 in Rochester, N.Y.; Rhode Island Lumber & Building Material Dealers Association’s annual holiday party Nov. 11, location TBD; Retail Lumber Dealers Association of Maine board meeting Nov. 11 in Lewiston, Me.; Mid-Hudson Lumber Dealers Association board meeting Nov. 15 in Newburgh, N.Y.; Eastern Building Material Dealers Association holiday dinner meeting Dec. 1 in King of Prussia, Pa.; Vermont Retail Lumber Dealers Association board meeting Dec. 1, TBD; Massachusetts Retail Lumber Association board meeting and holiday party Dec. 6, TBD; and Eastern New York’s holiday trade show Dec. 6 in Saratoga Springs, N.Y.

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MoVERs & Shakers Barbara Douglas will retire June 30 after more than 30 years as executive vice president of Lumbermens Association of Texas & Louisiana. Shannon Lowe has been named general mgr. of BlueLinx, Chicago, Il. Lynn Noesser succeeds her as GM for the Dallas/Fort Worth and El Paso districts. Dusty Hammack, DW Distribution, Oklahoma City, Ok., has retired after 43 years in the industry and one year after selling Arrowhead Lumber Co. Adam Pittman, ex-Builders FirstSource, has joined Boise Cascade Engineered Wood Products division, as area mgr. in Nashville, Tn. Marco Oropeza was named general mgr. of Huttig Building Products, Dallas, Tx. Matt Thompson, exPalmer Donavin/Seal-Rite Door, is GM in Columbus, Oh., and Kevin Olesen is GM in Saco, Me. Nick Palermo, ex-Beatty Lumber & Millwork, is a new territory mgr. for Huttig in Lancaster, Pa. Paul Stringfellow, ex-ProBuild, has been appointed director of business development with PrimeSource Building Products, Irving, Tx. Brent Hastie, ex-84 Lumber, is a new lumber/millwork sales specialist with Teague Lumber Co., Kansas City, Mo. Bill Lubrico, ex-Allied Building Products, has joined New Castle Building Products, White Plains, N.Y., as residential sales mgr.

Building Products Digest

Chris Dooley has joined Sure Drive USA, Conover, N.C., as national sales mgr. Rob Nienaber has been promoted to lumber division general mgr. for Thompson Mahogany Co., Philadelphia, Pa. James Larkey is now decking division general mgr. Sam Ehlert, ex-Hines Supply, has hired on as purchasing director for Western Building Products, Milwaukee, Wi. Ed O’Connor has been appointed chief financial officer for Consolidated Lumber Co./Arrow Building Center, Stillwater, Mn. Ray C. Dillon has retired after 13 years as president and CEO of Deltic Timber Corp., El Dorado, Ar. Board member D. Mark Leland will serve as interim president and CEO during the search for a permanent replacement. Troy Baker, SRS Distribution, McKinney, Tx., has been promoted to VP of sales & marketing. Loren Bush, 84 Lumber Co., has moved from Florida to Houston, Tx., as VP-sales. Mark Hicks has been appointed general mgr. of 84 Lumber, Fort Myers, Fl. Tad Black, ex-TPI, is now process improvement specialist for Great Southern Wood Preserving, Sumter County, Fl. Cynthia Mungia has been promoted to store mgr. of McCoy’s Building Supply’s Southside location in Corpus Christi, Tx.

November 2016

Ed Gebhart, ex-84 Lumber, is new to Carter Lumber, Mason, Oh., as assistant mgr. Bob Adams, exMiddleton Building Supply, is now operations mgr. in Charlotte, N.C. Carl Gade is retiring after 29 years with Penrod Co., Virginia Beach, Va., but will remain on the board. Frank Bauer, ex-Pella of Kansas, rejoined Kansas Building Products, Wichita, Ks., as sales mgr. Mark Lipsius, business development mgr., Chelsea Building Products, Oakmont, Pa., will oversee the recently purchased Everlast composite siding business. Ryan Williams is now warehouse mgr. of The Builder’s Choice Lumber Co., Auburn, N.Y. Ryan Steinhoff has been promoted to store mgr. of Home Depot, Topeka, Ks. Jody Rankin, ex-Lowe’s, is now managing Home Depot in Shorewood, Il. Dan Hanusa, ex-Hanusa Hardware, is now mgr. of Habitat for Humanity ReStore, Council Bluffs, Ia. James Metcalf has retired after five years as chairman, president and CEO of USG Corp., Chicago, Il. Jennifer Scanlon is now president, CEO and a director. Steven Leer is non-executive chairman. Alan Adams, Gypsum Management & Supply, Tucker, Ga., was promoted to VP and CIO. Margery Shreiner is new to sales at ABC Supply, Charlotte, N.C. Branch mgrs. promoted to managing partners include Ray Beery, Kansas City, Ks.; Chris Bonelli, Rockford, Il.; Bryan Armstrong, Waterbury, Ct.; Anthony Conrad, Erlanger, Ky.; David Cook, Tulsa, Ok.; Jace Dilley, Oronoco, Mn.; Michael Graminski, Winchester, Va.; Kenneth Monda, Gurnee, Il.; Kevin Koch, Wauconda, Il.; Kevin Hamel, Newburgh, N.Y.; Janet Heavener, Port Charlotte, Fl.; Tim Howk, Abilene, Tx.; Andy Kayne, Sarasota, Fl.; Jon Sipila, Flint, Mi.; Brian Sinclair, Orlando, Fl.; Dale Mullener, Ocala, Fl.; Michelle Nash, Gainesville, Fl.; Harry Jernigan, Macon, Ga.; David Hilliard, Bryan, Tx.; Mike Taylor, Sioux Falls, S.D.; Tony Tompkins, Maple Plain, Mn.; and Kevon Ventimiglia, Macomb, Mi. Earl E. Bird has again won the quarterly sales award at MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus. Building-Products.com

nEW Products

Railing That Rocks

Control the Moisture

The new Rockport extruded PVC railing system by DuraLife is designed to deliver clean, elegant appearances that meet the structural building code requirements for both residential and commercial applications. The system was especially developed for level rail spans up to 10 ft. and up to 8 ft. of stairs. Rockport features hidden stainless steel mounting hardware, flat top rails with chamfered edges, and a matte white finish that can be painted custom colors.

Boral USAâ&#x20AC;&#x2122;s Drain-N-Dry Lath with Delta-Dry technology is a solution for advanced moisture control and unifies multiple critical components in a wall system into a single, high-performance product. The product combines a reinforcing lath and a rainscreen that replaces the need for a secondary water resistive barrier, enabling builders to address drainage, drying and moisture vapor control underneath stone and stucco.

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Building Products Digest

November 2016

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No More Lights Out The TRiLIGHT by Striker is a motion activated ceiling light for any room that requires more powerful illumination than a traditional light bulb. The light boasts 3000 lumens of light output, using only 35 watts of power, and the install is a simple as screwing in a light bulb. An ultra-sensitive sensor will detect your presence when you enter the room, and the motion of the garage door when you drive home at night.

Universal Trim Stone

Keep Out the Flames

ClipStone Universal Trim Stone by Environmental StoneWorks is perfect for wall caps, fireplaces, inside corners, window trim, and door trim. Available nationwide, the mortarless stone veneer is offered in all accessory colors to provide the perfect finishing touch to any interior or exterior ClipStone project. It comes packaged 18 pieces to a box.

BASF’s Palusol sandwich panels now meet fire door listings requirements issued by the Quality Auditing Institute, Ltd., an independent, third-party testing and inspection organization. The QAI listings, which cover Palusol SW door cores, edgesealing systems, and hardware, confirm 20 to 90 minute fire resistance for wooden fire door slabs and frames.

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November 2016

Building Products Digest

Aluminum Post Cable Rail Drivers with Grip Irwin Tools has added several new products to its Performance Series screwdriver family. Featuring a three-zone comfort grip for increased grip support and more control, the new screwdrivers offer a userfriendly, multi-tool design to accommodate a multitude of tasks tradespeople might face on the job. They also include heat-treated precision tips, chrome-plated shafts, performance grip for comfort and control, and an acetate core for durability.

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Atlantis Rail Systems has developed its first aluminum post cable railing system. The NOVA System features powder-coated aluminum posts, handrails and foot rails and horizontal cable infill. The cable infill utilizes HandiSwage fittings with 1/8â&#x20AC;? cable. It is offered in a standard black color option. NOVA is a completely off-the-shelf system with minimal parts. There are four post kits, which include a universal and corner post for level sections and a top/mid and bottom post for stair sections. The top and bottom rails are packaged together in 6â&#x20AC;&#x2122; lengths. Each post and rail kit includes everything needed for installation, excluding post mounting hardware.

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Revolutionary Weatherproofing Dexerdry by Deckorators is a simple, easy-toinstall weatherproofing system that enables deck builders and homeowners to create dry zones under raised decks and eliminate water issues from groundlevel decks. With Dexerdry, it is possible to add extra outdoor living space and storage areas, with the confidence that they will not be affected by precipitation from the above deck structure.

n DECKORATORS.COM (800) 332-5724

Building Products Digest

November 2016

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A Sharper Solution for Cutting Milwaukee Tool’s new Safety Cutter is a quick and easy substitute for utility and pocket knives and the ideal solution for “knife-free” jobsites. The cutter is perfect for opening cardboard and corrugate, tape, plastic, and shrink-wrap, and features an optimized, recessed blade that stays sharp and allows for more efficient cuts. An ergonomic, nylon handle provides up to five times longer life than other similar cutters on the market.

Key-Link Fencing & Railing’s new Vertical Cable Railing System is a stainless-steel vertical infill cable for Key-Link’s American Series profile. Fully code compliant, with stainless-steel support bars and high-end appearance, the system comes partially pre-assembled and is neatly packaged for shipping and handling convenience.

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November 2016

Building Products Digest

Deck, Remodel shows unite

DECK & REMODELING Expos linked resellers and end-users with the industry's top manufacturers through conference programs and networking events. [1] Tim Shigley, NAHB Remodelers chair, and Lonzaâ&#x20AC;&#x2122;s Kirk Hammond, president of NADRA, cut the ribbon at the Baltimore Convention Center Oct. 5 to kick off the show. [2] Ron Cook, Brian Lowry. [3] Steve Wahoviak, Dan Hagedorn. [4] Marc Brookshire, Dave Varhol. [5] Matt Cassie, Dan Semsak. [6] Ralph Bruno, Shawn Vann. [7] Andy

Building Products Digest

November 2016

Phillips, David Campbell. [8] Richard Lam, Joel Cone. [9] Brad Hurst, John Scarborough, Vann Lanz. [10] Mike Descoteaux, Linda Hajjar, Jeff Osborne, Jim Poulin. [11] Matt Hungerford, Darrell Hungerford. [12] Phil Lail, Chris Dooley. [13] Jay Poppe, Alexis Sivcovich, Eric Gee. [14] Heather Marchand, Michael Beaudry, Jenn Zedaker. [15] Kyle Loveland, Jamie Kreiser. (More photos on next two pages) Building-Products.com

DECK EXPO Photos by BPD

DECK EXPO (continued from previous page): [16] David Elenbaum, Lanny Jass. [17] Michael Turner, Terry Brady. [18] Scott Marshall, Kevin Garman, Conor Partello, Alan Dimlow. [19] David Willin, Gary Engleman, Kevin Friday. [20] Chris Kollwitz, Bob Heidenreich. [21] Alan Benson, Mike Perrish, Julia Fitzgerald, Tom Silva, Kevin Oâ&#x20AC;&#x2122;Connor, Chris Building-Products.com

Czachor, Jenna Herron. [22] Chris Harouff, Emily Biggerstaff, Joe Holcombe, Nick Doub, Lane Durand, Jimmy Herblin. [23] John Morrison. [24] Bob Peters, Heather Kimiecik, John Bailey. [25] Kaylen Handly, Erin Frank, Bill Griffith. [26] John Foley, Ernie Couillard. (More photos on next page) November 2016

Building Products Digest

DECK EXPO Photos by BPD

MORE EXPO (continued from previous pages): [27] Sabrina Hardison, Deb Barlow, Aubrey Barlow, Jena Richardson. [28] Mark Reum, Karen Stoos, Patrick Watson. [29] Joe Carfaro, Tracy Young. [30] Tom Anderson, Jerry Combey, Dana Noonan, Andreas Alvarado, Tom Taylor. [31] Kevin Harris, Lynn Liebertz. [32] Doug Brooks, Brian Betz, JC Rentschler, Faye Williams, Brent Gwatney, Moss Pettigrew, Chris Dooley, Ray Brown. [33] Kurt Hogard, Bert Falcone. [34] Chris Boyts,

Building Products Digest

November 2016

Loren “Digger” Graber, Ken Hotchkiss, Mary Kittrell, John Finnegan, Gary Kauffman, Pat Gallagher, Rich Peterson, Larry Boyts. [35] Chuck George, Bob Shangraw. [36] Maurice Ridley, Scott Cathcart, Corey Wagner. [37] Bryan Watson, Gary Lacy, Mark Schnettler, Scott Klebam, John Aaron. [38] Manoj Chadha, Jase Deboer, Bill Langman, Chris Camfferman, Ryan Piper. [39] Paul Young Jack Delaney. [40] Chris Johnson, Jacek Romanski, Craig Christansen. Building-Products.com

NELMA hits the links NORTHEASTERN Lumber Manufacturers Association hosted its annual fall golf outing Sept. 20 at Brunswick Golf Club, Brunswick, Me. The scramble-format tournament was followed by a reception featuring an association update. [1] Jim Robbins, Terry Miller, Jim Tipton, John Gannon. [2] Randy Moore, Chris Fitzgerald. [3] Rob Hoffman, Nicholas Fontaine, Alden Robbins, Chuck Gaede. [4] Paul Lennon, Jason Brochu. [5] Chris Brochu, Nate Davis. [6] Jim St. John, Chris Bagley, Stuart Toof, Tim St. John. [7] Karl Seger, Sean Covell, Jeff Hardy, Mario Tremblay. [8] Mark Woodbrey, Craig Woodbrey. [9] John Krueger, Eric McCoy. [10] Jeff Haley, Joe Siemion. [11] Alex Darrah, Ben Crowell. (More photos on next two pages)

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November 2016

The Merchant Magazine

NELMA GOLF Photos by BPD

NELMA GOLF (continued from previous page): [12] Larry King, Steve Banahan. [13] Joe Robertie, John Ruscio. [14] Christian Smith, Anthony Baroni. [15] Brad Weller, Alan Orcutt. [16] B Manning, Keegan Holt. [17] Dan Holt, Jamie Place. [18] Steve Teixeira, Rodger Ekstrom. [19] Susan Coulombe, Jim Dermody. [20] Adrian Brocho, Bill Ossenfort, Ryan Mulligan, Bob Mai. [21] Ron Dusavitch, Cody Gross. [22] Gregg Speed, Jeff Hall, Matt Duprey, Russell Coulter. [23] Larry King, Zoltan Van

Building Products Digest

November 2016

Heyningen. [24] A.J. Provost, Charity Provost. [25] Peter DiRizio, Prisco Diprizio, Rebecca Lowell, Tom Richardson. [26] Karl Smith, Dan Carrier. [27] Tonia Tibbetts, Richard Winemiller. [28] Toby Pineo, Tom Jenkins, Presidential Imposter, Dave Fenuccio. [29] Brent Vecchi, Stephen Oâ&#x20AC;&#x2122;Brien. [30] Don Pendergast, George Burns. (More photos on next page)

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NELMA GOLF Photos by BPD

N E LMA head Jeff Eastering speaks at the reception following the group’s golf event (continued from previous two pages): [31] Stephen O’Brien, Don Pendergast, George Burns. [32] Kim & Jeff Easterling. [33] Gloria Hall, Mary Caron. [34] Barbara Williams, Denise Keene. [35]

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Murdock McLeod, Kelly Gladfeltter, Jeanne McLeod, Fred Gladfelter. [36] Paul Lennon, Eric McCoy, John Krueger. [36] Dan Carrier, Hal Smith, Evelyn Smith, Bob Bronkie.

November 2016

Building Products Digest

IN Memoriam

Fencing Forecast to Climb

William Allen “Bill” Rachels, 55, salesman with Carter Lumber, Rockingham, N.C., died Oct. 6 in Rockingham. Lyn Bailey, 82, founder of Bailey Lumber Co., Cadiz, Ky., died Aug. 30 in Cadiz. A veteran of the U.S. Army and graduate of the University of Memphis, he started the sawmill in 1959, operating it for nearly 40 years. In 1999, he was elected mayor of Cadiz, serving until 2014. Catherine M. DeLaet, 83, coowner of DeLaet Forest Products, Wausaukee, Wi., died Oct. 14. She and her late husband Warren started the business in 1957, with her handling the accounting and bookkeeping. James Leroy Burdge, 81, retired lumber inspector for J. Nevin White Lumber Co., Duncannon, Pa., died Oct. 12 after battling leukemia.

Growth in fencing will be driven by rising construction expenditures and a move to higher value materials like ornamental metal, plastic and composites, according to a new study by Freedonia Group. The residential building market accounts for the largest share of fencing demand, and is expected to outpace all other markets through 2020. Metal fencing accounts for the largest share of fencing demand in

Composite Decking (Continued from page 12)

manufacturers to support its complete line of Hardwoods and Landscapes Collection eco-friendly decking with a free product sample program. Agreeing with this approach is Brian Cain of Wallace Hardware Co., which provides lumber and building materials to hundreds of retail outlets based across 13 states and within a 250-mile radius of Wallace’s Morristown, Tn., headquarters. “Our

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terms of both value and linear feet. Hottest among them is ornamental metal fencing, although chain link fencing will continue to be the largest category of metal fencing demand due to its low cost and durability. Demand for wood fencing will remain above that of plastic and composites through 2020, primarily due to its lower cost. Yet plastic and composite fencing is expected to register the most rapid rate of growth in both value and length through 2020.

goal is to become the market’s premier supplier of high-quality materials,” offers Cain. “The sale of composite decking from a leading manufacturer fits nicely into our valueadded selling initiative designed to make us stand out from competitive suppliers.” “The quality and durability of composite decking has increased greatly in recent years with the advent of capped composite technology,” he continued. “The key is reinforcing its value to our customers through an ongoing information campaign consisting of board samples, literature and personal sales calls. The initial cost of a composite deck may be higher, but this is outweighed by the numerous advantages. Good quality composite decking will look the same for years without the constant upkeep needed with pressure-treated wood. This is a point we constantly make to customers and resonates very well with homeowners either looking to stay for the long-haul or increase property values for future sale.” – Mike Descoteaux is the marketing manager for DuraLife Decking & Railing, Biddeford, Me. He can be reached at mdescoteaux@duralifedecking.com or (800) 866-8101.

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Building Products Digest

November 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. Kentucky Building Materials Assn. – Nov. 1, introduction to building material sales; Nov. 2-3, blueprint reading & material workshop, KBMA Hq., Louisville, Ky.; (502) 245-6730; www.kbma.net. Eastern Building Material Dealers Association – Nov. 1-3, Rick Davis’ Sales Boot Camp, Philadelphia, Pa.; (773) 769-4409; www.buildingleaders.com. Lumber Dealers Association of Connecticut – Nov. 2, annual meeting, Aqua Turf Club, Plantsville, Ct.; www.nrla.org. Northwestern Lumber Association – Nov. 2, clay shoot, Wild Wings of Oneka, Hugo, Mn.; (763) 544-6822; www.nlassn.org. Virginia Tech/U.S. Forest Service – Nov. 2-3, Future of Hardwood Lumber Industry conference, Princeton, W.V.; www.woodproducts.sbio.vt.edu/futurehardwoods. Building Material Suppliers Association – Nov. 2-4, roundtable, Morehead, N.C.; (800) 849-1503; www.mybmsa.org. Central New York Retail Lumber Dealers Assn. – Nov. 4, annual meeting, Cicero, N.Y.; www.nrla.org. New Jersey Building Material Dealers Association – Nov. 4, 22nd annual fishing trip, Atlantic Highlands, N.J.; www.nrla.org. Mid Hudson Lumber Dealers Association – Nov. 4, annual meeting, White Wolf Restaurant & Lounge, Napanoch, N.Y.; Nov. 5, Army football bus trip, West Point, N.Y.; www.nrla.org. Northern New York Lumber Dealers Assn. – Nov. 5, 18th annual bowling tournament, Market Lanes, Potsdam, N.Y.; www.nrla.org. Specialty Tools & Fasteners Distributors Association – Nov. 6-8, annual convention & show, Georgia World Congress Center, Atlanta, Ga.; (800) 352-2981; www.stafda.org.

ADVERTISERS Index

Midwest Building Suppliers Association – Nov. 9, supervisor & reasonable suspicion training, Indianapolis, In.; (317) 875-3737; www.thembsa.org. Building Material Suppliers Association – Nov. 10-11, leadership development roundtable, Charleston, S.C.; (800) 849-1503; www.mybmsa.org. Mid-America Lumbermens Association – Nov. 10-11, Fall Fling, Hilton Promenade at Branson Landing, Branson, Mo.; (816) 5615323; www.themla.com. Western New York Lumber Dealers Association – Nov. 11, annual meeting, ArtisanWorks, Rochester, N.Y.; www.nrla.org. Northeast Retail Lumber Association – Nov. 12-13, Rising Women in the Lumber Industry roundtable, Hotel Northampton, Northampton, Ma.; www.nrla.org. Lumbermen’s Association of Texas & Louisiana – Nov. 15, blueprint reading & estimating workshop; Nov. 16-17, material take-off class, Menger Hotel, San Antonio, Tx.; www.lat.org. Greenbuild – Nov. 18-20, Washington, D.C.; www.usgbc.com. Northwestern Lumber Association – Nov. 29-30, blueprint reading & material take-off, Altoona, Ia.; (763) 544-6822; www.nlassn.org. Eastern New York Lumber Dealers Association – Dec. 6, holiday trade show, Holiday Inn, Saratoga Springs, N.Y.; www.nrla.org. Northwestern Lumber Association – Dec. 6, business management seminar; Dec. 7-8, yard & delivery managers workshop, St. Paul, Mn.; (763) 544-6822; www.nlassn.org. Building Material Suppliers Association – Dec. 7, inventory control seminar, Raleigh, N.C.; (800) 849-1503; www.mybmsa.org. Western New York Lumber Dealers Association – Dec. 9, board meeting & holiday dinner, Rochester, N.Y.; www.nrla.org. Northwestern Lumber Association – Dec. 13-14, blueprint reading & material take-off, Omaha, Ne.; (763) 544-6822; www.nlassn.org.

Madison Wood Preservers [www.madwood.com]

Allura [www.allurausa.com]

Norbord Inc. [www.norbord.com]

Atlantis Rail Systems [www.altlantisrail.com]

Novik [www.novik.com]

Cox Industries [www.coxwood.com]

Quality Borate Co. [www.qualityborate.com]

Crumpler Plastic Pipe [www.cpp-pipe.com]

Railing Dynamics Inc. [www.rdirail.com]

ClearSpan Structures [www.clearspan.com]

Redwood Empire [www.redwoodemp.com]

Deckorators [www. deckorators.com]

Regal Ideas [www.regalideas.com]

Digger Specialties [www.diggerspecialties.com]

Roseburg Forest Products [www.roseburg.com]

Disdero Lumber [www.disdero.com]

Simpson Strong-Tie [www.strongtie.com]

Engineering Services & Products Co. [www.clearspan.com] 27

Smith Millwork [www.smithmillwork.com]

Everwood Treatment Co. [www.everwoodtreatment.com] 15, 31

Spartanburg Forest Products [spartanburgforestproducts.com] 43

Fasco America [www.fascoamerica.com]

Sure Drive USA [www.suredrive.com]

Great Southern Wood [www.yellawood.com]

Swanson Group Sales Co. [www.swansongroupinc.com]

Tri-State Lumber [www.homanindustries.com]

Versatex [www.versatex.com]

International Beams [www.internationalbeams.com] Jordan Lumber [www.jordanlumber.com]

Cover IV 40

Kop-Coat [www.kop-coat.com]

Cover III

Viance [www.treatedwood.com]

Koppers Performance Chemicals [kopperspc.com]

Cover I

Weyerhaeuser [www.weyerhaeuser.com]

Building-Products.com

November 2016

Building Products Digest

Cover II 21 n

FLASHBack 77 Years Ago This Month

CALIFORNIA RETAIL Association’s group picture in October 1939. The present day iteration is known as the West Coast Lumber & Building Material Association.

“I

read every word in The California Lumber Merchant, including all the advertisements, and there are hundreds like me who keep informed in this way,” wrote Jim Overcast of Strable Hardwood Company to the mag-

azine in 1939. “In other words, thank you for a fine lumber journal.” Seventy-seven years later, sister publication Building Products Digest still considers itself a journal that serves the lumber industry. As reported in The California Lumber Merchant in November 1939, bonding amongst associations was alive and well, even more than 75 years ago as the California Retail Association (now known as the West Coast Lumber & Building Material Association) celebrated its 20th annual convention in October of 1939. Attendance was large and was representative of all sections of the State. Business sessions were well attended considering the big counter attraction of the Golden Gate International Exposition on Treasure Island. In other news: • Reports showed that Los Angeles was the leading city in California both in number and value of permits, with 2,863 permits having a total value of $5,403,340. • A total of 495 mills produced 237,929,000 feet of softwoods and hardwoods combined, shipped 265,315,000 feet, and booked orders of 261,613,000 feet, according to the National Lumber Manufacturers Association. • A resolution urging lumbermen to exert every effort to defeat the passage of the California State Retirement Life Payment Act was introduced by Frank W. Trower and unanimously adopted at the meeting of Hoo-Hoo Club No. 39, held at Hotel Leamington in Oakland.

QUALITY REDWOOD: The above cover from November 1939’s issue of The California Lumber Merchant features Dolbeer & Carson Lumber Co., one of the early major Humboldt County lumber operations based in Eureka, Ca. John Dolbeer was a partner and invented the logging engine, more commonly known as the steam donkey or donkey engine. This vital equipment, especially with regard to very large trees and difficult terrain, revolutionized 19th century logging so significantly that variations of the engine were still used into the 20th century.

Building Products Digest

November 2016

• William B. Curts, U.C., recently returned from Germany, where he was a student, and told members of his experiences there, including his arrest as a suspected propagandist. • Ladies were welcomed at all business sessions at the State Retails’ Convention at the Yerba Buena Club on Treasure Island. Many ladies attended the USC vs. Cal football game at Berkeley on Lumbermen’s Day at the Golden Gate International Exposition. Final score: Trojans 26, Golden Bears 0. Building-Products.com

BPD Building Products Digest 151 Kalmus Dr. Ste. D200 Costa Mesa, CA 92626-5959

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