Bpd feb 2014

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DECKING & RAILING TRENDS  SOUTHERN CYPRESS  NAWLA ON INDUSTRY RECOVERY FEBRUARY 2014

Building Products Digest

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

Signs are pointing to recovery. NAWLA has designed its 2014 Leadership Summit for those who want to move ahead boldly and wisely at this crucial time. We’ve gathered eight industry leaders under one roof to help us better understand emerging outlooks, opportunities, and critical issues.

Now is the time of tapping into the wisdom of our community and casting new visions.

We know you’re busy, so we’ve packed a lot into a day and a half. You’ll come away better prepared to navigate pitfalls and pursue new opportunities.

Gustavo Jon Biotti Kimmo Jarvinen Don Kayne President/CEO, Secretary General, Managing Director, Grodnitzky, Ph.D. Leadership & Charlesbank EOS Canfor Capital Partners Org. Development Consultant

Marc A. Brinkmeyer Chairman, Idaho Forest Group

Jack Koraleski President/CEO,

Corporation

Peter Alexander CEO, BMC

Curt M. Stevens CEO,

.-,+*

WHY YOU’LL NEVER NEED ANOTHER EWP SUPPLIER:

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February 2014

ď Ž Volume 32 ď Ž Number 12

Building Products Digest

1. COMPLETE PRODUCT LINE

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2. DEPENDABLE DISTRIBUTION 3. USEFUL TOOLS & GUIDANCE 4. EASY TO DO BUSINESS WITH

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In Every Issue 6 TOTALLY RANDOM 16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES 20 FAMILY BUSINESS 26 MOVERS & SHAKERS 34 ASSOCIATION UPDATE 38 MANAGEMENT TIPS 41 NEW PRODUCTS 51 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX

Online BPD DIGITAL VERSION, BREAKING INDUSTRY NEWS & PHOTOS BUILDING-PRODUCTS.COM

Š 2014 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, BCI and “Great products are only the beginning.â€? are trademarks of Boise Cascade Company or its afďŹ liates.

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BPD DIGITAL VERSION

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

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TOTALLY Random

By Alan Oakes

BPD

Building Products Digest www.building-products.com

Unlocking you

A publication of Cutler Publishing

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family dinner, I was talking to my wonderful 14-year-old grandson, who told me that he did not expect to get into a good college after graduating from high school. I was disappointed to hear his resignation at such an early age, but perhaps he senses how competitive it is.

Unfortunately, if you think you are going to fail, inevitably you do. If you set your goals lower, then your life potential will never be achieved. And isn’t it that negativity that holds many of us back throughout our lives and careers? My grandson has to learn that we all fail at some time or other, but we need to set our goals at a high level.

We will end up either achieving the higher goal or, at minimum, reaching a higher level than had we set a lower goal.

For me, a new year is a good time to look at the promise of what’s ahead and be reminded of what went right and wrong in the year just finishing. Let’s be honest— few of us can say that every past year has been a step forward. Most of us have not escaped having some years where we said, thankfully, this year is over and let’s make the next one better. Unless you respond to and learn from those failures or down years, you cannot learn how to adapt your behavior and draw benefits from it. If we are willing to accept failure or mediocrity, don’t we deserve what we get?

Many of us begin a new year by making personal resolutions—to exercise, to lose weight, to quit smoking, to cut our debt—yet within 30 days, most of us have failed.

The reason is that most of us are creatures of habit, easily tempted and prone to overestimate our ability to change. Indeed, we may set unachievable goals—say, dropping 50 lbs.—or underestimate what it will take to maintain our commitment. Or, we might have too many resolutions or set vague, unmeasurable goals.

Whether personal or business, unless we learn from our failures and set goals, nothing can change. We’ve all read about those individuals who started businesses, failed, and yet started another one and succeeded (sometimes after two or three failures). How? Why? In most cases, it was that in each failure they learned something that helped them the next time round. In fact, that spirit of not accepting failure can be what drives them to start all over again.

Not all of us can be c.e.o.s or sales managers—and don’t have to be to feel happy and successful. But who determines it should not be us? The reality is that it is ourselves! If we have no plan or determination to succeed, if we are willing to accept the status quo, we end up in a life that later we look back on and blame everyone for but ourselves.

At the age of 19, in about my third job after leaving high school in the U.K., I realized that I was not going to go anywhere unless I took control of my life, set aggressive goals, and strove to offer something different from those around me. I adopted two basic philosophies for my business life. One, do everything with the highest level of energy and passion possible. I saw early-on the lethargy around the office with people who just showed up. That was not going to be me. Even at this age I cannot do anything without doing my best (thanks, Mum). Second, do not be content with going nowhere—meaning that if I cannot move myself and life on, it’s time for change. I was not going to stay with a company unless I could see a path for personal growth. Has all been successful? No, I have had my failures—some quite painful. But when I failed, I didn’t stand still. I spent every waking hour analyzing what, if anything, I did wrong and determining what it would take to bounce back. In most cases, I found something better the next time round.

Take the time to figure out what you really want out of your life and career. Analyze what you are going to do to achieve your business and personal goals. For most of us, good things don’t happen unless we make them happen. We are in control of our own life potential!

VER A RECENT

Alan Oakes, Publisher ajoakes@aol.com

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Building Products Digest

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February 2014

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Carla Waldemar, James Olsen Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com.

CLASSIFIED MARKETPLACE David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $24 Two years, $39 Three years, $54 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $49 Other countries, $65 Air rates also available.

SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping BUILDING PRODUCTS DIGEST is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872, (949) 852-1990, Fax 949-852-0231, www.buildingproducts.com, by Cutler Publishing, 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®2014 by Cutler Publishing, 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.

Building-Products.com

FEATURE Story Composite Decking

Which composite decking is best for your customer?

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KAY. YOU’VE SETTLED on which composite decking your store promotes. You stock one or two brands and have samples for a dozen more near the contractors desk. In walks the customer, looking for advice on which they should buy. By asking a few questions, you can lead them straight to the best decking for their needs.

How much do you want to spend?

Although, in general, the various composite decking brands are similarly priced for comparable lines, most manufacturers do offer premium and value lines, as well as variations in textures, design, composition, color, and installation systems that can greatly influence the cost. Buyers who are content with limited color choices, a smooth surface, repetitive grain pattern, standard lengths, and installation with face screws will keep costs down.

However, notes J.C. Rentschler, dealer sales representative for Weyerhaeuser Distribution, “new ‘capped’ products offer higher quality and an authentic look, but do come with a higher price tag. This also makes the product less skid resistant and has a tendency to retain more heat, so selection of a decking product is more crucial than ever.”

Adds Brent Gwatney, senior vice president of sales and marketing for MoistureShield: “New for 2014, we’ve developed the MoistureShield Pro line. It is our always high-performing MoistureShield composite decking with a unique plastic cap for an added layer of protection. This enhanced cap makes the boards more resistant to fading and staining; they’re even protected by a 25-year

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fade and stain warranty. These streaked boards will not only look beautiful, they’ll also be durable.”

How closely do you want your deck to resemble wood?

More expensive composites often feature finer details, more colors choices, subtle shadings, superior grain, and other differences to provide a more authentic wood-look appearance. Some producers buff every deck board to remove any resemblance to plastic.

“For the best-looking composite decking, contractors can choose boards with deep embossment patterns for a realistic wood grain appearance,” says Gwatney. “Some brands also have variegated color streaking that resembles exotic hardwoods. For example, MoistureShield’s Vantage line includes premium colors like tigerwood and walnut.”

Will you use your deck in the hot sun?

Darker, solid and very dense composites absorb more heat than lighter tones.

Rentschler suggests “lighter color selections for hotter climates that have extreme sunlight or heat. Do research online or with experienced decking contractors to see which products perform best.”

Have the homeowner take home composite samples in different colors and set them outside where they want to build the deck, so they can gauge the temperatures each will reach.

How wet will your deck get?

Smooth-textured composite decks can get slippery. If the deck is going to be installed in a rainy or icy climate or

February 2014

will sit near a pool or spa, it should have a raised or textured grain for skid resistance—particularly if it will be used as a common entry into the home.

Do you want to see your fasteners?

Hidden fasteners will bump up the cost of the project, but do provide a cleaner appearance, hiding between tongue-and-grooved boards or clipping together thinner profiles.

“Aesthetics continue to be the most driving factor behind a deck,” Gwatney explains. “Hidden fastening systems are becoming increasingly popular with homeowners and more deck boards are available grooved to accommodate fasteners. In addition to the clean surface finish, some hidden fasteners are actually faster to install than surface screws, so it’s a double win for builders.”

Does your budget include all the extras?

A composite deck package typically includes a lot more than boards and fasteners. Buyers may also have to factor in railings, balusters, posts, post caps, end caps, skirts, decorative trim, and more. And, with higher-end lines, all the elements can match.

According to Edie Kello Wilson, director of marketing communications for Fiberon, “Customizable options include railing infill, such as metal, composite or glass, and lighting for both decking and railing. Performance benefit options include fade, mold and scratch resistance, fastenerfree surfaces, and warranties.”

Would you like to see how your ideas will look in a finished deck?

Mobile apps and online desk design systems allow your customers to know what they’re buying before they buy it.

“The day of the sample is dying, and state-of-the-art design applications are here to stay,” says Rentschler.

“User-friendly applications now allow homeowners to design their own deck and color scheme.”

Walking homeowners through the materials suitable for their dream deck, and showing them style, color and customizable options, helps move projects from the planning stage to the sale.

“Ultimately, customers need to understand that their investment in a composite deck is going to last decades, without the need to stain and paint it every other year like the wooden decks they likely grew up with,” Wilson says.

“By reviewing the aesthetic aspects and technical options of composite decking products available at various price points, you can help customers make a decision they’ll enjoy for years.”

WITH TODAY’S countless options for composite decking, dealers should be prepared to match customers to the products that are the best fit for their needs. (Photo by MoistureShield)

INDUSTRY Trends Kebony Decking & Cladding

Alcohol-treated decking renews focus on U.S.

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sustainable alternative to tropical hardwoods, Kebony decking and cladding is gaining recognition in North America.

“Everybody would like to use tropical wood,” says Christian Jebsen, chief executive of the Norway-based company. “The problem is it’s not sustainable, and most people understand that. What we do is take softwood and give it the properties of the hardwood we would like to use.”

The science behind this transforILLED AS A

mation is Kebonization, a process in which sustainable softwood is treated with furfuryl alcohol—a natural waste product of certain crops. When the wood is then heated, a chemical reaction permanently changes the wood cells and imparts the look, color, and properties of tropical hardwoods.

Jebsen believes that the time is right for a treated wood such as Kebony. As of March 2013, new European Union legislation requires importers of tropical wood to prove

that the wood comes from sustainable sources.

In the U.S., municipalities have turned away from tropical hardwood and chosen sustainable alternatives such as Kebony. A good example is New York City, where Mayor Michael Bloomberg ruled that the city would stop using tropical hardwoods.

Last fall, Kebony was recognized for the third time as one of the world’s most promising private, clean technology companies in the presti-

KEBONY was used to create decking and walkways at the Rory Meyers Children’s Adventure Garden at the Dallas Arboretum, Dallas, Tx. Photo courtesy Kebony

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gious Global Cleantech 100. This award honors companies that provide solutions to some of the world’s most pressing environmental problems.

At Greenbuild 2013—November 20-22 in Philadelphia, Pa.—Kebony was re-launched into the North American market and a distributor was announced: Pine River Group, St. Clair, Mi. The company offers the important sales, marketing, inventory, and logistical support necessary to develop the North American market through multiple channels.

Currently, southern yellow pine from the U.S. is shipped to Kebony’s plant in Skien, Norway, and then shipped back to the states. Other Kebony species include Scots pine from Scandanavia and radiata pine from New Zealand.

“Kebony and Pine River Group are exploring various opportunities to justify the establishment of the first treatment plant in the U.S.,” says Andy

KEBONY SYP DECKING enhances the Nelson Park Lakefront project in Decatur, Il. Photo courtesy Kebony

SUSTAINABLE cladding from Kebony protects a new residential building at Princeton University, Princeton, N.J., which will accommodate visiting faculty members.

Photo courtesy Princeton University

Hehl, Pine River Group sales manager. “Kebony’s research and development team is continuously evaluating new wood species for treatment, with the goal of establishing production nearest raw material sources.”

To help get the word out, Pine River Group partnered with Matthew Hodjera, Hodjera Architectural Products, Seattle, Wa. His firm promotes Kebony directly to the architectural, design, and landscape architecture communities. It also develops strategic national accounts, provides Building-Products.com

expertise in new product launches, support on certain PR initiatives, and overall market strategies and approaches.

“This is a truly remarkable product for the North American architecture and design market,” says Hodjera. “It provides all the warmth, beauty, and durability of tropical hardwoods with none of the negative environmental impact.”

In the U.S., most recently completed projects are municipal. New boardwalks were constructed of Kebony February 2014

clear southern yellow pine at Hunter’s Park South Waterfront Park in Long Island City, Queens, N.Y.; the Nelson Park lakefront enhancement project in Decatur, Il., and the Dallas Arboretum in Dallas, Tx. At Princeton University, Princeton, N.J., Kebony cladding faces a recently completed apartment building for visiting faculty members. A mixture of studios and one-bedrooms, the three-story, 11,779 sq. ft. structure occupies a small residential area of the campus.

Kebony will also be an important part of several U.S. projects currently under construction, with completion expected this spring: as rain screening and decking at Martial Cottle Park, San Jose, Ca.; as dock planking at the Harbor Village Marina, St. Joseph, Mi., and as decking and flooring at a boutique hotel on Isla de Vieques, Puerto Rico.

“We believe this product has a place in a number of prominent areas in the building products industry, such as manufacturing of custom windows and doors, roof deck tiles, exterior architectural beams, flotation docks, and park benches, to name a few,” says Hehl. “We see this product as exceptional for waterfront docks and piers and high-end residential decking, cladding, and rain screening.

Kebony can be used anywhere the warmth and beauty of real wood are desired, and the stability and durability are demanded.” 

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FIRST Person

By Huck DeVenzio

Pioneer in 5/4 decking leaves lasting mark

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LONG-TIME MEMBER of the lumber industry, Al Lucksted, died in October. Most recently he headed sales and purchasing at Midwest Timber in Edwardsburg, Mi., but his prime legacy may be his role in the introduction of 5/4 radius edge decking.

Five-quarter RED is now a common profile for treated southern pine, cedar, ipé and even composite decking. This was not true in the late 1970s. At that time, following the emergence of backyard building but

DECKING INNOVATOR: Al Lucksted (19352013) brought 5/4 radius edge decking to market at Wickes Lumber.

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before the appearance of big box stores, Wickes Lumber was a major retailer, operating stores around the country although most prominently in the East, South and Midwest.

Lucksted, product manager for specialty lumber at Wickes, and his supervisor, George Finkenstaedt, were looking for products that might distinguish Wickes from competitors.

Finkenstaedt remembers a field trip to check competitive offerings. “Al and I traveled to the tidewater area of Virginia with a valued supplier, Bob Hawes of Tolleson Lumber. At Moore’s stores, we saw a squareedged decking product that was thinner than 2” lumber. It seemed to be something with potential.”

Hawes and the innovative owner of Tolleson Lumber, Mell Tolleson, set out to create a product that could help their customer and also benefit Tolleson’s sawmill and treating operations. After investigating several variations, they came up with 5/4” radius edge decking. It looked good, much better than the dimension lumber then commonly being used for decking. The quarter-inch radius minimized wane on edges, and was strong enough to allow a reasonable span.

Current Tolleson c.e.o. Rusty Wood managed a Tolleson sawmill and recalls visiting Wickes headquarters with Hawes to show Lucksted and Finkenstaedt a prototype sample.

“Wickes jumped on the idea from the start, working out expected sales and profits on a calculator before we fin-

February 2014

ished the meeting.”

The group figured out that, compared to 2” lumber, the proposed decking could provide a higher return to mills on a board foot basis and still be offered to contractors and homeowners at a lower price on a lineal foot basis.

Lucksted and Finkenstaedt convinced their upper management that Wickes should stock this untried product. Lucksted next had to excite the store managers and promote the decking to customers. He and Hawes designed and built display decks for the front of all Wickes Lumber retail locations. They wrote truckload orders for presumed sales at more than 100 stores, even though there was no history for the product and no assurance that it would sell in large volumes. It did. It sold so well that Wickes quickly became concerned that Tolleson could not keep up with demand. The Tolleson team had to recruit other sawmills to join the 5/4 program, going so far as to provide reluctant mills with planer knives and guaranteeing their sales in order to get their participation.

Although several mills produced the lumber, until the widespread acceptance of this decking all pressure-treating was done at Tolleson using CCA preservative. (Note: Perry, Ga.-based Tolleson Lumber still produces lumber, but no longer treats wood.)

Meantime, to protect against inferior knock-offs, Mell Tolleson drafted a Building-Products.com

grading standard for 5/4 RED. Mell served on the board of the Southern Pine Inspection Bureau and valued grademarks. Grading rules for RED were adopted in 1983 and are believed to be the first rules based on appearance criteria rather than strength characteristics. The original rules defined the radius, knot size, and three grades—Premium, Standard and No. 3—for 4”, 5”, and 6” widths. The rules have been modified since then.

Finkenstaedt, who now consults on mergers and acquisitions of building material operations, notes, “Our stocking of 5/4 decking gave Wickes a two- or three-year headstart over our competitors. It was an unqualified success for many years and underscores the importance of collaboration among all participants in the supply chain. It would not have been possible without the forward-looking and enthusiastic support of Rusty Wood at the mill level, Mell and Bob at the treating level, and, of course, Al Lucksted at the distribution and retail level. They all made it fun as well as very profitable for all participants.”

Rusty Wood agrees: “Five-quarter decking proved very successful for Wickes, Tolleson, sawmills, treating

Building-Products.com

plants, lumber dealers, and the consumer. It remains a leading choice, three decades after its launch.”

Richard Dannenberg, former marketing director at Tolleson, singles out the contribution of Lucksted, who also introduced V-groove lumber and pre-assembled deck accessories during his career at Wickes. “If Al had

not been willing to take a risk on the product, 5/4 decking would not have entered the market.”

– Huck DeVenzio retired from Lonza Wood Protection, Atlanta, Ga., as manager of marketing communications in 2013 after 40 years of promoting treated wood.

He says he qualifies as an industry historian by his age, if nothing else.

THE ROUNDED corners of 5/4 decking provide a finished appearance and minimize wane.

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PRODUCT Spotlight Southern Cypress

Cypress summoned for Frank Lloyd Wright home

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ESIGNED BY Frank Lloyd Wright in 1939, the newly constructed Usonian House at Florida Southern College, Lakeland, Fl., highlights the famed architect’s affinity for cypress—which was one of his favorite building materials.

The 1,700-sq. ft. residence was part of a 20-building master plan that Wright developed for the college.

Originally designed as a modest faculty residence, the new center showcases displays related to his relationship with the college. It also acts as a home for visiting exhibits on loan from other Wright sites.

Architect M. Jeffrey Baker of Mesick, Cohen, Wilson, Baker

Architects in Albany, N.Y., who oversaw construction, said Wright’s 75year-old blueprints did not directly specify building materials, but he believes cypress was the only logical wood choice for the project.

“The only finished wood Wright used on the FSC campus was cypress,” Baker said. “He specified the material in many projects throughout his lifetime, and it was a signature trademark of his Usonian homes throughout the country. We simply followed the materials and details he used in the other homes and across the FSC campus, and applied them to this project. Without question, cypress was the historically accurate material

to use.”

After working with the cypress, Baker and his team grew to understand Wright’s enthusiasm for how the wood looks and performs.

“Cypress is readily available in various sizes and lengths, it mills easily, and accepts a variety of finishes,” he explained. “It also is resistant to insect infestation, which, of course, is very important in Florida.”

Tom Sharrett, a woodworker at Demoss Cabinetry, Lakeland, Fl., whose shop custom-milled 10,000 bd. ft. of cypress for the project, is an advocate as well. “Cypress is an easy wood to shape and sand,” he said.

“We used it anywhere a finished

USONIAN HOUSE, newly constructed at Florida Southern College, Lakeland, Fl., showcases Frank Lloyd Wright’s affinity for cypress and other locally sourced materials, such as handmade bricks and other natural materials.

(Photos by Michael Maguire, www.buildingtheusonianhouse.com)

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wood product was required, including all of the interior ceilings, plank walls, built-in cabinets, tables, benches, trim, and even light fixtures. The exterior features cypress soffit and fascia, window and door frames, pergolas, and doors.”

Wright envisioned the Usonian style at the height of the Great Depression as a way to construct simple, affordable homes for American families, by emphasizing the use of locally sourced wood, brick, and other natural materials. Although 60 Wright-designed Usonian homes can be found across the U.S., the new one at FSC is the first example of this particular home plan to be built.

“When we constructed the Usonian House, we expected it to be remembered for the exquisite use of Wright’s signature ‘textile’ blocks, which are indeed remarkable,” Baker said, “but we were unprepared for the warmth the cypress added to the feeling of the spaces. We have noticed that when people comment on the beauty of the house, they never fail to mention the cypress.”

The FSC campus has the largest concentration of Wright-designed buildings in the world, including the

Building-Products.com

CYPRESS is heavily featured in the interiors, used anywhere a finished wood product was required, including all interior ceilings, plank walls, built-in cabinets, light fixtures, and furniture.

new Usonian House and 12 other projects that were completed during his lifetime.

For more information on cypress,

February 2014

please visit the Southern Cypress Manufacturers Association’s website at www.cypressinfo.org.

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COMPETITIVE Intelligence

By Carla Waldemar

The business belongs to the customers

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T ’ S SHOW ( ROOM ) TIME ! Your Building Centers, with 13 locations serving rural north-central Pennsylvania, has launched a state-of-the-art design showroom in Williamsport, by all accounts the best in the region, with 12,000 sq. ft. of home décor, including six home facades and over two dozen kitchen & bath vignettes.

Contractor customers can shepherd their own customers around the realm of what YBC’s president and c.e.o.

Phil Skarada touts as “every decorating product imaginable, from faucets and vanities to countertops, flooring, windows and doors.”

With 90% of YBC’s business coming from the trade, not those retail dreamers, well… what’s the point?

Duh. To help those very pros. “It helps them grow their business by providing

an opportunity for them to showcase everything used in a home. Most of our customers build only one to five, or—at the most—10 to 15 homes a year. No tract builders, with their spec houses, here in the middle of nowhere!”

“But you’re drawing my business!” one of those builders exploded—until he understood. YBC operates, as it always has, on the simple principle that it’s in business to help its own customers succeed: “We care for our business—and yours—because for us it’s one and the same.”

Then why the showroom? Phil sits the fellow down, buys him a cup of coffee, and asks him two things: “Are you putting up spec homes?” (“Noooo! I haven’t got that kind of money and can’t get a loan!”) “Well,

NEW SHOWROOM features a “street” of six home facades to show off exterior options.

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February 2014

then, do you have a showroom of your own?” (Same answer.) “See, you don’t have the ability to show customers what you can do. Because you can’t afford it, we’ll do that for you. We’ll be that platform.” Not only did he see the light, Phil says, the builder started bragging about ‘his’ new showroom to his clients.

“Our philosophy is based on the entire partnership cycle: vendors with us, us with our customers. We’ve dealt with the same vendors for 30 years, creating efficiencies for both of us, and efficiencies for our customers. We strive to be the best we can be, and expect our vendors to trade with us in the same way, and then take that to our customer base. You’ve got to sell your customers on that philosophy, and the only way to do that,” Phil knows, “is one-on-one. Explain the benefits. That’s the ball game.”

This game goes into lots of extra innings, as both YBC and its contractors chalk up winning streaks. Service beyond-the-call includes designing website pages for them. (“Can’t afford that,” one resisted the offer. He quickly was stripped of that apprehension: “Hey, no charge. It’s free.”) “We deal with an environment in which each customer has unique capabilities, so we build on a customer’s strengths and help them improve on weaknesses. These pros are good with the mechanics of building, but maybe not on how to run a business.”

YBC also customizes TV commercials for these pros, with listings by geographical area and specialty. In other words, it steps up to provide any service that can help market their operations to the retail trade.

YBC’s annual trade show, with seminars, vendor booths and demos, dinner and entertainment, draws 1,000 attendees. Pros who have achieved a certain volume of business also receive a coveted invitation for a Caribbean cruise (another chance for sales force and customers to mingle), provided they’re not in arrears.

Therefore, accounts receivable are nil.

“Our peers are amazed,” Phil reports.

Special orders are another service that pays off for both. “It’s a substantial part of our business”—as much as 50% of our volume at some locations, notes Phil. “We have a group of employees with that kind of knowledge, so when they come to us for something, we’ll look for it.”

YBC also installs kitchens with its own crew and subs out other items, Building-Products.com

from garage doors to insulation, to be installed by its cache of trusty pros. To make a builder’s operation even easier, it also manufacturers trusses, interior doors, panels and framing (which YBC also installs, both to ease contractors’ headaches in dealing with subs and to boost its own marketshare and revenue). The panel plant was launched seven years ago as “a synergy with the business we were already in—a natural succession that’s helped us with our commercial business, too,” he says. “Turns out, 85% of our customers are our own contractors.” During the recent downturn, when the daunting issue for home builders was bank financing, YBC expanded its panel operation to bolster its commercial accounts, such as motel construction, driven by demand by those involved in fracking for natural gas.

Even though the company has been pro-oriented since day one, that alignment is constantly strengthened. “We continue to grow revenue by how we tweak it,” says Phil.

“We sit down with the key players in the company. We listen to our employees and ask a lot of questions.”

Those staffers—well over 300 of them—make up the moving parts of the employee-owned operation, which means there are also over 300 on the management team.

YBC was born of a leveraged buyout of a corporation divesting itself of a number of building centers that were losing money. “We used our pensions and 401/k funds as equity to buy stores in the Pennsylvania region in 1989 and

What’s in a Name?

Shakespeare asked that very question, and so did the owner-employees of then-fledgling YBC. Ideas were tossed out at those initial meetings. “Why not AAA—first in the phone book?” suggested someone.

Phil Skarada had other thoughts—thoughts that conveyed the company’s reason for existence—and his marketing acumen prevailed. “This is not our business, it’s the contractors’, the customers’. ‘This is your business,’ we’ll tell them”—Your Building Centers. “We’re not external, someplace in North Carolina. We’re right here, and we’re not going anyplace.

“The first thing I did was change the dress code—remove the coats and ties in favor of casual dress. They were intimidating to one’s subordinates, and their job is just as important as my own, if not more so, because they’re the ones in front of the customers. My dad always told me, ‘You’re no better than anyone else.’”

The message stuck. “If people ask me, I say ‘I work for YBC.’ I don’t say ‘I’m the president.’ When they want to know what I do there, I say, ‘Not much of anything. I’m an educator.’” If later they learn he’s, um, the president (“You’re kidding me!”), he downplays his role. “The people I work with are very responsible and do their jobs. My function is to be their tutor, their mentor. If an employee asks why we’re doing a certain thing, I take the time to explain why the decision was made, such as why Location A got a boom truck rather than Location B. I go over the volume of business each store was doing, the usefulness of assets, the cost vs. the payback. And usually they respond, ‘I’ve never heard it explained that way before!’”

In making a choice between using accrued capital to jump-start the projected design showroom or to pay year-end bonuses, the bonuses won out and the project was pushed back for a year or two. Yet Phil wouldn’t have it any other way. “It’s been a good ride,” he confirms with gusto.

Building-Products.com

BUILDERS HARDWARE can be displayed beautifully, too.

set up an ESOP structure. This literally puts the risk of running a business into the hands of a whole pool of people.

We moved our future retirement into a position of risk, because we then had to maintain and grow the business.

Everyone realized that the risk associated with the return was a strong motive to learn and grow—so we taught people ‘This is how to run a business. Your retirement is based on your performance.’”

Power to the people? He agrees: “Tremendous empowerment! They hold the future in their own hands. We taught people how to run the business, telling them, ‘Our business is selling. Don’t get hung up on your industry; ours just happens to be building materials. Selling is a function of timing and plan. It might fall flat, but that’s not to say that that’s forever. Look again.’

“It’s a process of education. I tell people, ‘Not everything works. And if it doesn’t, stop. Try something else.

But always understand your core business. The demands will always be there—the lumber and drywall, the commodities. But you can grow your peripherals—what your customers, and their customers, are asking for.’”

“Change,” he understands, “is inevitable. You cannot become complacent: That’s what kills so many people. The difficulty, going into the future, will be to have resources and capital. People in our own group—a young group, in their mid-40s—have only experienced the past 15 years.

But I tell them, there’s a natural business cycle of four, five years. The past was like a house of cards that hit a brick wall.”

Yet, YBC’s business was trammeled “only very lightly,” he adds. “In fact, we’re actually hiring salespeople.

We’re constantly evaluating our marketing, updating our website” and already re-aligning some features in the new showroom to better serve the customers. “We’re always looking for opportunities, and will continue to grow.

Risk,” he underscores, “comes from standing still.”

Carla Waldemar cwaldemar@comcast.net February 2014

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17

OLSEN On Sales

By James Olsen

Firm offers, last looks, and the double pin

A

Q UOTRON QUOTES and hopes, then quotes and hopes some more. The Quotron feels that the customer has all the power. The customer is their master.

These sellers are frustrated by their results but don’t realize they are responsible for their relationships with customers.

Quotrons merely serve their customers.

Master sellers serve and sell their customers.

Setting (Emotional) Boundaries

My wife is a sweetheart with the patience of Job, but early in our relationship I made a (I thought) jocular remark she found offensive. She let me know nicely, but very clearly, that certain kind of talk, even if you’re joking, was not okay.

Customers need to know that not buying from us is not okay. Most of our spouses have a little more leverage to negotiate with us than we do with our customers, so what do we do?

Firm Offers

The customer asks if we can hold the shipment, or change the tally, or lower the price, or anything. Many sellers respond, “Let me check” or “Yes.” This is being a Quotron. Questions from customers are not service opportunities. They are service and sales opportunities.

We respond, “If I can do that, will you buy it from me?”

Or “If I can do that, will you give me a firm offer on it?” Or often, simply, “Can I have that firm?”

The beauty of the firm offer is we can use it whether we know we can do what the customer is asking or not.

Asking for a firm offer from cagey, nervous, distrustful customers even when we already know we can do what they are asking is a great sales strategy. Many customers like to see us sweat for the business; others love to negotiate. The firm offer scratches their itch and gets us the business.

Important note: Make sure to “double pin” all firm offers by saying, “This is firm, right?”

Last Looks

We take down the customer’s specs. Right before we hang up or walk out of the office, we say, “Hey, John, can you give me ‘last look’ on this one?”

The weakness of the last look is that it appears to invite a counter. We must be careful not to sound needy when we ask for it. The strengths of the last look are: • We will get more business.

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• It gives us a clear sense, early, of our chances of getting the business. Our customer’s attitude and response to our question will indicate our odds of success. For the busy salesperson, knowing which business to pursue is crucial. Asking for last look gives us this insight immediately.

• It sets the tone. Too many sellers send the message, “Whatever you want, Mr. Boss of Me. I am here to serve you.” Asking for last look sends the message, “I will do whatever it takes to make you happy, and I expect to get the business.”

Sometimes I hear, “I talked to the customer last Friday and he said he was going to give me the order. I called this morning, and he had already given the order to someone else.” How did that happen and, more importantly, how do we stop it?

Customers often say, “Call me on Monday, and I’ll give you the order,” or “You’re very competitive. We’re probably going to go with you on this one.” Or “Call me Friday, and we’ll get together on this.”

Vague promises are anvils disguised as life preservers, and salespeople who grab onto them drown in frustration.

The Double Pin

When customers say they are going to buy from us, we say, “Great! I’m looking forward to doing business with you. So I can count on this order, right?” or “So I can tell my wife I’ve got your business, right?” or “Thanks, John, so I can tell the boss we’re getting this business?”

And then, most importantly, we add, “So when should I call you to get your order number?” We do not say, “When should I call you” without adding “to get your order number,” or we send a service only— not sales also—message.

Getting the order, right now, is best. We use firm offers, last looks, and the double pin when the best just isn’t good enough.

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

FAMILY Business

By Wayne Rivers

TLC needed for family members in the business

H

AVE YOU EVER had a dog? Dogs love unconditionally and, in return, you show them love. The relationship is very special.

Unfortunately, some people treat their pets better than they do the members of their own families. Why not treat your family members as well as you treat your dog?

Families in business can learn some valuable lessons from the way we treat our pets.

because he is afraid or something is not right. When family members “bark,” you should pay attention and be responsive. If something is wrong, don’t allow it to drag on and on.

You get the point. Your dog deserves time and care. So do members of your family, especially if you work with them. Just as your dog gives you unconditional love in

1. Pet them frequently. Your dog isn’t the only one who needs attention. Some of us express our needs clearly, while others don’t. But everyone needs love, affirmation, and time. Your family members are no different. Spend time with them… not just in the business, but interacting as family.

You say sweet things to your dog. When was the last time you said something sweet to a family member? Tell your family members you love them, appreciate them, and respect them as people. A little TLC earns great dividends in love and loyalty from your dog. You will receive the same effect from your family.

2. Stay in the yard. You don’t want your dog to stray from home because you don’t want them to get harmed or get into trouble. That’s good advice for family members also. Don’t make family members “leave the yard” to find the acceptance, fulfillment, or support they want and need.

3. Feed them regularly. Are you giving family members just the scraps from your table or do you really feed them? All of us need to be fed, but nourishment and growth don’t just come from groceries or paychecks.

Provide opportunities for family members to learn and grow professionally and personally. The more you feed them, the more all of you grow.

4. Throw them a bone. From time to time, treat family members to an unexpected bonus. It might be a something as simple as a night on the town, a day off work, or even a getaway trip. Let them know you appreciate them and the roles they play in your family and your business.

5. Listen to their barking. When a dog barks it is 20

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return for your attention, you might be pleasantly surprised by similar results from family members. You can get everything in life you want if you just help enough other people get what they want. And what most of us crave is recognition, care and love.

If this approach works for dogs and for family members, why shouldn’t it apply to co-workers, customers, vendors and everyone you know? The analogy may seem simplistic and silly, but the lesson is real. Treat everyone around you like a dog. Not only will they be happier, more productive, and more dedicated, but their responses to you will help you in attaining everything in life you want.

– Wayne Rivers is president of the Family Business Institute, Raleigh, N.C. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493.

Reprinted with permission of the Family Business Institute. No portion of this article may be reproduced without its permission.

Building-Products.com

Ohio Lumber Chain Seeks New Site

DEALER Briefs Zuern Building Products, Allerton, Wi., purchased Worzella Lumber’s 7.9-acre location in Franklin, Wi., and retained all its employees.

Shell Lumber & Hardware , Miami, Fl., has been acquired by its former president/chief operating officer, Jesus Guzman, from Paul Naron, who has retired after 32 years.

Star Lumber, Somersworth, N.H., has closed after 60

years of business and its property was sold to developers.

Marion Ace Hardware, Marion, Ks., will open this Seacat Do it Center building (Kent

spring in the former Carmichael, owner).

Schroeder Lumber, Baton Rouge, La., suffered about $10,000 in damage to its warehouse in a Jan. 12 fire.

Investigators suspect an over-loaded power cord.

Autauga Home Supply, Prattville, Al., has been sold

by Melissa and Lewis Mills to Billy W. Johnson, owner of Dixie Hardware, Montgomery, Al. ACO Hardware, Farmington Hills, Mi., is rejoining Ace Hardware and will be renamed Great Lakes Ace.

Hunt Backs Off Curt Bean Mill Deal

Hunt Forest Products, Ruston, La., has withdrawn its offer to buy the former Bean Lumber Co. mill site in Glenwood, Ar. Hunt said it rescinded its letter of intent after being “unable to reach an amicable solution in resolving some major issues” with the site’s current owner, Caterpillar.

James Hardie Expands in Florida

James Hardie Building Products will invest $80 million expanding its fiber cement manufacturing facility in Plant City, Fl. The expansion will retrofit existing operations, add 100,000 sq. ft. of new space, double the plant’s capacity, and create 100 new jobs by spring 2015.

Deceuninck Adds Lamination Lines

Go Green Building Supply has opened in Delray

Deceuninck North America, Monroe, Oh., has added three more PVC lineal lamination lines to meet growing demand for a more color options.

“The demand for lamination tripled in the past year,” said Filip Geeraert, president and c.e.o. “Deceuninck’s addition of three new lamination lines reflects our commitment to meeting this demand for more customized color solutions that conform to design specifications, and help businesses and homeowners give their space a signature look.”

Home Depot opened a 104,000-sq. ft. store with

Plycem Buying CertainTeed Fiber Cement Business

On Jan. 8, ACO began liquidation sales at 26 of its 52 locations, which will be the first to be converted. All stores will be cleared out and remodeled within six months.

True Value Home Center, Spring, Tx., has become the first store in the Houston area to be remodeled in the coop’s Destination format, incorporating a new layout, color scheme, and expanded departments.

Beach, Fl.

17,000-sq. ft. garden center and 96,000-sq. ft. outdoor lumberyard in Minot, N.D., on Jan. 16 (Jason Barker, store mgr.).

It had operated a small satellite store in the area since last summer.

Lowe’s was declined planning commission approval to build a new store in South Dennis, Ma.

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Gordon Lumber Co. closed its 45-year-old yard in Tiffin, Oh., Jan. 6, temporarily reducing the chain to five lumberyards, a design showroom, and a truss plant in Northwest Ohio.

Gordon is transferring the store’s inventory and one employee 25 miles away, to a site in Findlay, Oh., where it expects to open a new location shortly. An outside salesman will continue serving the Tiffin area.

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Intent on focusing on vinyl and polymer siding, SaintGobain has agreed to sell its U.S.-based CertainTeed fiber cement siding business to Plycem USA, Alpharetta, Ga. The deal, set to close in first quarter 2014, includes plants in White City, Or.; Roaring River, N.C., and Terre Haute, In., and employs nearly 250.

Plycem and sister company Maxitile are subsidiaries of Elementia of Mexico.

Building-Products.com

SUPPLIER Briefs Britton Lumber Co., Hartland, Vt., has been sold by

Douglas G. Britton to its longtime CPA, Robert E. Moses, who is now president and c.e.o. Britton will continue on for up to a year as an advisor.

Pleasant River Lumber installed a new computerized lumber processing system at its mill in Dover-Foxcraft, Me. Chesterfield Lumber Co., Darlington, S.C., suffered a late-night fire Jan. 4 that started in a sawdust bin.

Ralph Stewart Logging, Amite, La., will open a pine log export facility in W. Baton Rouge, La. The company paid $1.75 million for the 12-acre site with 25,000-sq. ft. warehouse.

Fiberon will invest $3.8 million over the next three years to expand its manufacturing facility in New London, N.C. Universal Forest Products agreed to buy the assets of Cel-Pak and Nu-Wool cellulose insulation maker National Fiber, Belchertown, Ma. The deal was expected to close by Jan. 31.

Boston Cedar , Mansfield, Ma., is now distributing Intex Millwork custom exterior PVC products in the

Northeast.

Bayou City Lumber, Houston, Tx., is now stocking GRK fasteners.

MFM Building Products, Coshocton, Oh., received a

U.S. patent for its PowerBond adhesive system, which is used in several of its waterproofing and weather barrier products.

CertainTeed Gypsum, Tampa, Fl., was named the 2013 Commodities Vendor of the Year by Do it Best Corp.

Versatex, Aliquippa, Pa., feted Service Wholesale Inc., Downington, Pa., as 2013 Dealer of the Year and Falls City Lumber, Louisville, Ky., as Distributor of the Year.

North American Specialty Products LLC , Wayne, Pa., formerly CertainTeed Pipe & Foundation Group, has a new website at www.naspecialtyproducts.com.

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Scotch Gulf Closes Reman Plant, Sells Equipment to Everwood

Everwood Treatment Co., Spanish Fort, Al., is boosting its remanufacturing capacity with the purchase of the inventory and equipment from Scotch Gulf Lumber’s remanufacturing plant in Mobile, Al. The machinery is being moved to the expanded reman operation at Everwood’s treating complex in Spanish Fort.

“The purchase will help provide added capacity for our growing markets and future expansion plans,” said sales manager Steve Cheatham.

Scotch Gulf shut down its reman plant at the end of December.

SierraPine Selling Off, Closing Mills

SierraPine, Roseville, Ca., has agreed to sell its composite panel operations in the West to Arauco subsidiary Flakeboard America Ltd. The sale, set to close in late February, includes particleboard mills in Springfield, Or., and Martell, Ca., and an MDF mill in Medford, Or. SierraPine is not closing, but instead will shutter, its older particleboard plant in Adel, Ga.

Thomas Consolidates in Orlando

Thomas Lumber & Supply has closed its 74-year-old Winter Park, Fl., branch and consolidated operations at its 89-year-old flagship store in Orlando, Fl. The Winter Park property has been sold and the inventory and five employees moved to Orlando.

Wimsatt Eyes Eighth Branch

Wimsatt Building Materials, Wayne, Mi., will open a new DC in Wyoming, Mi., late this spring.

Contractors are currently renovating an existing 31,377sq. ft. showroom/office/warehouse on the site and adding another 24,000-sq. ft. warehouse.

Decking Dealer Spreads to N.C., Ga.

Decks & Docks Lumber has opened its first locations in North Carolina and Georgia.

Brian Basye is managing the 4,800-sq. ft. store on 3.1 acres in Wilmington, N.C., while Tyson Sonderland oversees the new branch in Pooler (Savannah), Ga. The chain also has nine stores in Florida and one in South Carolina.

Building-Products.com

Deliver more deck sales.

Many lumber dealers are seeing their annual deck sales increase with the use of DeckTools® software. The program is simple to learn and easy to navigate – in fact, dealers can design a deck in a few minutes, keeping them on the show floor (rather than in the backroom designing by hand). Your customers also will be impressed with your DeckTools software as they see a professional, 3D photo-quality image of their deck attached to their house. The program is customizable and includes many brand-name decking manufacturers, which makes it easy to show and sell upgrades that you stock. And it takes care of all the paperwork with quotes, take-offs and plans.

DeckTools makes it easy to deliver more deck sales. Learn how by signing up for a free demonstration at (800) 999-5099 or www.strongtie.com/decktools.

©2014 Simpson

Strong-Tie Company Inc. DECKTOOLS12-D

MOVERS & Shakers Larry Brozek, v.p., Kropf Lumber, Hesston, Ks., has retired after 20+ years with Kropf and more than 40 years in the industry.

A.J. Grome has been promoted to store mgr. of McCoy’s Building Supply, SE San Antonio, Tx. Craig Danielson has been promoted to c.e.o. of WOLF, York, Pa., succeeding Tom Wolf, who is retiring in June to run for governor of Pennsylvania.

Carol Green, ex-Lee Roy Jordan Lumber, is new to outside sales at DeFord’s Lumber & Millwork, Duncanville, Tx. Toby Pineo has been promoted to sawmill mgr. of Irving Forest Products’ facility currently under construction in Ashland, Me. Michael Miller, ex-BlueLinx, has been named engineered wood products mgr. for Warren Trask Co., Lakeville, Ma. Jonathan D. Mize has been promoted to c.e.o. of Blish-Mize Co., Atchison, Ks., succeeding his father, John H. Mize, who continues as chairman of the board.

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Allan Adams, ex-Laminate Works, is a new industrial account mgr. for Universal Forest Products, Hillsboro, Tx. Thomas Plasschaert, ex-BlueLinx, has been named mass merchant channel mgr. for Snavely Forest Products, Pittsburgh, Pa. Scott Bosse, ex-Southern Pacific Supply Co., is a new senior account mgr. in Baltimore, Md. Andrew Hess, ex-PAL, has joined Lumbermen’s Inc., Grand Rapids, Mi., as customer service mgr.-door division. Jared Hanna, son of Tri County Building Centers owner Brien Hanna, is a new customer service rep.

Patrick Iseman, ex-84 Lumber, is new to pro sales at Guy C. Lee Building Materials, Mt. Pleasant, S.C. Gary W. Smith, ex-Fortress Fence Products, is now director of sales for OZCO Building Products, Richardson, Tx. Lynn Wilson, Rayonier, Jacksonville, Fl., has been promoted to executive v.p.-forest resources.

February 2014

Mitchell B. Lewis, ex-Euramax, has appointed president, c.e.o., and a director of BlueLinx, Atlanta, Ga. Roy Haley is now chairman, succeeding Howard Lewis, who remains on the board.

Hannah Knapp is new to outside sales at Britton Lumber Co., Hartland, Vt., covering Vt., western Ma., northeastern N.Y., and northwestern N.H. Justin McErlain, ex-Universal Forest Products, is now central Virginia territory sales mgr. for TruExterior products by Boral, Roswell, Ga. Brian Graham is new to outside sales at Davis-Hawn Lumber, Dallas, Tx. Steve Crone has joined Kemper System America, West Seneca, N.Y., as account sales executive for the Midwest region.

Tom Knox has resigned as v.p.-retail business development, training & supply for Ace Hardware Corp., Oak Brook, Il., to become president and c.e.o. of Westlake Ace Hardware, Lenexa, Ks. Tom Hillyer, ex-Sunrise Builders Supply, has been named mgr. of True Value Hardware & Lumber, Batesville, Ms. Maggie Bresser is a new window specialist at Drexel Building Supply, Appleton, Wi. Wade Patrick is now v.p. of Double L Industries, Peachtree City, Ga. Scott Bryant is new to sales.

Jonathan Conley has joined Bostik, Wauwatosa, Wi., as territory sales mgr. for the Mid-Atlantic region.

Ann Feierabend is now central region sales mgr. for Telling Architectural Systems, Cranston, R.I. Jeff Pratt was promoted to senior v.p. of sales for Danze and Gerber Plumbing Fixtures, Woodridge, Il. John M. Deignan has been named president of Americhem, Cuyahoga Falls, Oh. Jody L. Bilney was elected to the board of Masonite International Corp., Tampa, Fl. Steve Reuter was named executive director of American Construction Metals, Beloit, Wi., a division of ABC Supply, Beloit.

Matt Cullen, Mid-Atlantic regional sales mgr. at Versatex, Aliquippa, Pa., was honored as the company’s top sales mgr. for 2013.

Jack Tupp is now maintaining the delivery fleet at Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

Building-Products.com

THINKING Ahead

By Gary Vitale, President & C.e.o., North American Wholesale Lumber Association

Southern Comfort

Predictions of lumber recovery T HE PROMISING OUTLOOK throughout the lumber industry is particularly upbeat in the South, where many markers are pointing to a hardy rebound. This, after lumber as an important regional economic driver has been veering off-course for several years.

It’s hard for many in southern lumber to imagine economic health, given the depth of the downspin of recent years. The collapse in housing starts between 2005 and 2009 sank lumber prices to lows not seen since the 1930s, and the recovery has been painfully slow. But industry analysts are now saying that a shortage of lumber supply is likely to translate into sustained growth in demand and higher prices for southern lumber producers and timber owners over the next five years.

The South isn’t alone in hearing upbeat forecasts.

With the demand for lumber tied closely to recovery of the U.S. housing market, it is good news that most predict a continuing recovery of housing starts, perhaps approaching 1.5 to 1.6 million units by 2015-2016.

Growing demand is also fueled by exports of timber and lumber to China, whose economy is expanding at a continuous and stable rate. China’s surge in housing needs has led to a jump in lumber and log exports to the country, with North American lumber exports to China surging seventeen-fold to 3.5 billion bd. ft. since 2006.

China plans to build 7 to 8 million housing units per year over the next decade to accommodate the migration to the cities and to replace sub-standard units.

At the same time, global lumber and timber supply is constrained. More than half the commercial pine in British Columbia, the largest lumber-producing Canadian

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province, has been lost to Canada’s worst pine beetle infestation on record. The country’s output fell to 23.7 billion bd. ft. in 2012 from a peak of almost 36 billion bd. ft. in 2004—a 35% decrease.

China has only a few alternatives to North America for softwood lumber and logs. Russia, New Zealand, and Europe are major suppliers, but they have limited capacity to meet the Chinese demand. China has replaced the U.S. as Canada’s major lumber customer, and the U.S. has now joined Canada in large-scale shipments to China from ports in the Pacific Northwest. India may follow, and Japan has barely begun to rebuild from its earthquake and tsunami disasters.

But the U.S. South is a long way from China and the Far East, and shipping is somewhat limited by the Panama Canal, the size of which currently restricts the use of the largest, most efficient container ships and even larger ones to come. That’s about to change.

Panama has spent more than $5 billion to widen and dredge the Panama Canal to support a new class of supersized cargo ships—known as Post Panamax ships— that are more than twice as big as the traditional cargo shipping fleet. The expanded canal will be complete in 2015. Products from the Southeast headed to Asia have mainly relied on the Ports of Los Angeles and Long Beach, after cross-country shipments via rail and truck.

Soon, a much higher proportion of Asia-bound lumber can go to East Coast and Gulf ports, than on to the Far East using the enlarged Panama Canal.

Manufacturers in the South face fewer rigid policy constraints and they have a large over-supply because of

Building-Products.com

A Special Series from North American Wholesale Lumber Association several years of lower production. In 2013, lumber production in the U.S. South was recovering. Production was near 15 billion bd. ft., up from the low point in 2009 of 11.6 billion bd. ft., but still far below the 19 billion bd. ft. of production seen in 2005. It’s predicted that lumber production in the South will rise to 21 billion bd. ft. or higher by 2016.

Already, softwood sawmills in the South are among the most competitive, according to a survey spanning 32 regions and countries. Since 2102, U.S.-based sawmills have led all regions in financial earnings, mainly from improved demand, rising lumber prices, and low log costs. And since 2008, sawmills in the U.S. South have attained the highest earnings in the nation.

Mill profits are up, leading to capital expenditures that will increase lumber capacity in the South over the next few years. There are already signs of Southern strength, with new mills being built and the upgrading of mills in southern states.

not strong. And that puts logging contractor capacity at the top of the biggest challenges facing the mills.

Other obstacles: • Logging is capital-intensive, requiring investments of $1 million to $1.5 million for what is now a largely mechanized endeavor. Now that the timber industry really is poised to recover, companies may find product hard to come by.

• Lenders remain wary about providing money to young logging enterprises that are not well established.

Remaining Challenges Some in the southern timber industry say that they see demand for forest products slowly increasing but fear that a workforce decimated by recession won’t be able to meet the demand. The timber industry in the region has been down so long that predicting an upturn seems foolhardy. Some in the sector are forecasting a slowmotion recovery.

Demand for timber products has not yet rebounded to prerecession levels, said Rick Holley, c.e.o. of Plum Creek Timber Co., Seattle, Wa., which owns much southern timberland. “Recovery is on the way, but timber products still have a way to go to pre-recession levels.

Nevertheless, we expect lumber production in the U.S. South to increase by 50% during the next three to five years from present levels.”

Insiders ask if the workforce will be there to cut that wood. The lingering forest products downturn pared almost a third of the logging workforce. The downturn forced out marginal operations, leaving only the hardiest and best capitalized. One company executive wonders whether loggers will return to the forests as the industry recovers. “Some will, but the work is hard, does not pay well, requires a lot of capital and young people just don’t want to go into logging,” he said.

In addition, the workforce is “aging out” of the industry, and loggers and mills wonder where they’ll find employees to replace them. In one southern state, Arkansas, the average age of loggers is 55, about 10 years older than the average in other regions (though the challenge of an aging workforce goes beyond the South).

The industry may see a lot of people leaving in the next 10 years, and recruitment of a replacement workforce is

Building-Products.com

• Logging, like almost any agricultural effort, is hard work subject to the whims of weather. Wet weather common throughout the South typically shortens logging time to 42 weeks of the year or fewer.

NAWLA visits the Deep South for our 2014 Leadership Summit, March 30-April 1. The Summit will feature eight industry leaders who will speak on the outlooks and opportunities in the South and throughout North America. For details on the Summit—at The Lodge and Spa at Callaway Gardens in Pine Mountain, Ga.—go to www.nawla.org.

As lumber demand improves, there is only one region—the U.S. South—that is in a position to significantly increase output to meet that growth in demand.

“In the South,” one lumber leader said, “trees grow really well because we have a fair amount of rain, good soils, and lots of warmth and light. Also, markets are good and the regulatory environment at the state level supports the industry. This is where the growth is going to be in the future.”

Certainly, most analysts agree that as the lumber industry navigates the recovery, a primary route will be through Dixie.

February 2014

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Online Retailer Specializes in Fasteners Online retailer Clickstop, Urbana, Ia., has launched a new website offering thousands of fastener products at bulk prices.

FastenersPlus.com was developed to target contractors, business owners, and consumers planning do-it-yourself and home repair projects, and also offers customers flat-rate shipping every day.

Nikki Dudley, Clickstop’s v.p.operations, said the development of the brand has been in the planning stage for several months, with much of that time devoted to product research to ensure the merchandise mix satisfies the brand’s wide-ranging target market.

The website is organized by general categories such as anchors, bolts, nuts, etc., with subcategories within each group to make product selection easy. Category pages also include content with helpful product information to educate customers who might not know the differences between similar merchandise.

“With over 20,000 products, we want to make sure we’re offering the right products, and that they are orga-

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nized into an easy-to-find, logical format,” said Dudley. “We’re now looking ahead to broadening our selection

even further, and adding other items such as hand tools and accessories, as well as more industrial and specialty fasteners.”

BEAUTIFUL PHILLY: Saddle Rose-toned NyloDeck composite decking created the ideal outdoor living space as part of the 2013 Philadelphia Magazine Design Home.

February 2014

Building-Products.com

World Stays on Green Path

Green building material sales are predicted to grow 12.5% annually from $106.32 billion in 2012 to $234.77 billion by 2019, according to a new study by Transparency Market Research.

Key application segments analyzed in this study include framing, insulation, roofing, exterior siding, interior finishing, and other applications of green building materials.

The largest green product segment is insulation, a mature yet still-growing category. Roofing is second, but should fall, based on the expected rise of framing, exterior siding, and interi-

or finishing products.

North America dominated the global market for green building materials in 2012, consuming more than 35% by volume, followed by Europe with 32%. The biggest growth is expected in Asia Pacific.

Sherwood Brings in Cirque

At this month’s Northeastern Retail Lumber Association expo, exhibitor Sherwood Lumber, Islandia, N.Y., will be putting on a show of its own.

With the theme “Cirque Du Sherwood,” several Cirque performers will be appearing at Sherwood’s booth Feb. 26-28 in Boston.

DEALER Briefs KENecticut True Value Hardware, Oakville, Ct., has been

acquired by Raymond Fontaine, ex-

Raymonds Building Supply ,

from Ken Stanco, who has retired.

Ziegler’s Ace Hardware , Elgin, Il., is liquidating its 25-year-old store in Carol Stream, Il., and will close next month, after being unable to work out a lease extension. The chain hopes to find another location in the area.

Ace Hardware begins construction in April on a 12,000-sq. ft. store in Bluffton, S.C., for a Labor Day finish (Robert and Renee Heuser, owners).

Fowlerville True Value Hardware , Fowlerville, Mi., has

closed after 122 years.

Punzel Ace Hardware, Jefferson, Wi., has closed after 55 years.

Drexel Building Supply this month is opening store #5, in Wrightstown, Wi. Pires Hardware , N. Easton,

Ma., has closed.

REAL CEDAR DECKING

NOTHING LOOKS OR FEELS QUITE LIKE IT. Nothing looks or feels better underfoot than Real Cedar. It’s naturally beautiful, structurally solid and long lasting. And it possesses a rich, warm character that other materials simply can’t match.

What’s more, Real Cedar is more affordable than wood-plastic composite boards, and is easier to install and maintain.

Given that Real Cedar is also a sustainable, renewable resource, why would you choose anything less?

REAL CEDAR IS AVAILABLE FROM

32

westernforest.com

realcedar.com

604 648 4500

1 866 778 9096

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Building Products Digest

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February 2014

Seven Corners Hardware, St. Paul, Mn., is closing in June after 81 years. The property has been sold to a developer.

Ace Hardware is opening a new

store in Spring Hill, Fl.

Hardy’s True Value Hardware, Manchester, Ct., has closed.

Aubuchon Hardware lost its lease in Herkimer, N.Y., and shuttered the 10-year-old store Jan. 2.

Armor Building Supply is opening a new store in April in Hornellsville, N.Y., and is relocating its metal fabricating center to Hornellsville from Elmira, N.Y. Habitat for Humanity opened an expanded, 15,000-sq. ft. ReStore discount LBM outlet in Summerdale, Al., and moved its Alliance, N.C., ReStore to a larger building in Grantsboro, N.C. Anniversaries: Turnbough Building Supply, Piedmont, Mo., 55th … High Brothers Lumber,

Camdenton, Mo., 35th …

Building-Products.com

ASSOCIATION Update Northwestern Lumber Association will host its annual Nebraska Lumber Dealers Convention March 11-12 at Embassy Suites Hotel & Conference Center, La Vista, Ne. A yard and delivery managers’ workshop will be offered March 20-21 at Comfort Inn, York, Ne., and March 24-25 at Mathew Hall Lumber, St. Cloud, Mn. Eastern Building Material Dealers Association has scheduled its Mid-Atlantic lumber & building material trade show for March 12 at Valley Forge Casino Resort, King of Prussia, Pa. National Lumber & Building Material Dealers Association will co-host a March 31-April 2 spring meeting & legislative conference at Hyatt Regency, Arlington, Va., with the Window & Door Manufacturers Association.

North American Building Material Distribution Association welcomed its new president, Don F. Schalk, C.H. Briggs Co., succeeding

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Michael Darby, Capital Lumber.

They are joined on the board of directors by president-elect Rick Turk, Metro Hardwoods; v.p. Bill Sauter, OHARCO; treasurer Wayne Moriarty, Atlantic Plywood, and directors Jamie Barnes, McKillican International; Ken Hager, Amerhart; Ray Prozzillo, A&M Supply; David Sullivan, Meyer Decorative Services; Mark Carlisle, M.L. Campbell; Jim Jacquemard, C.A. Technologies; Jeff Muller, Panolam Industries; Dan Pickett, Knape & Vogt; Greg Simon, Far East American, and Todd Vogelsinger, Columbia Forest Products.

Southeastern Lumber Manufacturers Association has scheduled its spring meeting for March 4-5 at The Dolce Atlanta-Peachtree Hotel, Peachtree City, Ga. International Wood Products Association will meet March 5-7 at Renaissance Vinoy Resort & Golf Course, St. Petersburg, Fl., for its annual convention.

Speakers include Scott Clemons, chief investment strategist at Brown

February 2014

Brothers Harriman & Co.; Dusty McCoy, c.e.o. and chairman of Brunswick Corp., and Congressman Steve Southerland.

Hardwood Manufacturers Association will hold its national conference & expo March 12-14 at Hyatt Regency, Savannah, Ga. The first morning will be the annual meeting of Southern Cypress Manufacturers Association.

The following days will feature a variety of presentations—“Driving Growth Through Innovation” by Robert Tucker, Innovation Resource; “Managing Your Company’s Most Valuable Resource,” by Rushe Hudzinski-Sero, Effingham County board of commissioners; “Leveling the Playing Field for American Hardwoods,” by Claire Thompson Getty, Appalachian Hardwoods, and “Innovative Sawmilling & Yard Technologies,” by Scott Norton, USNR. North American Wholesale Lumber Association will present the University of Industrial Distribution March 9-14 at JW Marriott, Indianapolis, In.

Building-Products.com

OZCO BUILDING PRODUCTS, Richardson, Tx., launched an 11-show web series for contractors and d-i-yers about constructing decks, railings, pergolas, and fences, called Building Breakthroughs and available at www.buildingbreakthroughs.com.

Cold Hampers Firefighters at Yard

Firefighters endured extreme cold as they fought a Jan. 4 fire at Marly Building Supply, Brooklyn, N.Y. It took nearly 200 firefighters seven hours to bring the five-alarm blaze under control.

“We were also battling the cold,” said fire chief James Esposito. “It presented quite a number of challenges, water supply issues, and safety issues. We had ice all over the place.”

He also said there were a lot of flammable materials in the store, but the fire is still being investigated and no one was hurt.

Chemicals Kill Mill Co-Owner

A chemical accident on New Year’s Day left one man dead at Berry Bros. Lumber, Adams, N.Y. Authorities said that the accident occurred when coowner Gary J. Berry, 54, and an unidentified employee were emptying chemical remnants from one 55-gallon drum into another. The recycled plastic drums were obtained through various sources, so the previous contents may not have been known.

After first responders assessed the situation, a hazardous materials team was called. A section of a nearby highway was closed and neighbors were warned to stay inside while the team worked in freezing conditions to clean up the chemicals.

The company, which Mr. Berry co-owned with his brother, Lee D. Berry, has been plagued with problems. A June 2008 fire destroyed the entire work site. In April 2013, the business was heavily damaged by another fire.

Store Soaked by Brassy Thief

A surveillance video taken at Waterloo Lumber, Waterloo, Il., showed a suspect taking brass valves valued at more than $1,500.

The suspect stuffed more than 40 of the valves into his boots and the pockets of his coat and pants before leaving the store. Police say this is the second time in two months that the company has been burglarized.

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Building-Products.com

MANAGEMENT Tips

By Steve Ondich, Commercial Forest Products

So your best sales rep is a jerk...

W

I WAS 15, I joined a baseball team, playing what would be my last year of organized ball.

Because I signed up late, all the teams in my age division were full, so I agreed to play in the 16-18 league.

I’ve since forgotten the name of my team, but not the chaos that ensued that season. Imagine a Farrelly Brothers remake of The Bad News Bears. Most of my teammates were talented with behavioral issues. They smoked during batting practice, arrived hung over on game day, and cursed at the coach.

They were talented, though. They may have been incapable of showing up for practice or passing a drug test, but on Saturday they hit home runs and won games. I say they because I did not see a lot of playing time that season. If there was an award for effort, attendance and attitude, it would have been mine. Despite being disrespected in countless ways, my HEN

coach did the pragmatic thing and played the best players. Although I practiced tenaciously, the lion’s share of playing time went to kids who were physically or mentally absent during the week. To my teenage psyche, that seemed wrong. What I realize now is that my teammates excelled in the one area that mattered most: performing

on game day.

In the upper echelons of sales departments across the country, many well compensated sales professionals are resented by co-workers for the same reasons that I resented my delinquent teammates. Do any of these water cooler rants sound familiar?

Lucky Laurie has her nerve.

Someone gave her the Vanderdoody account five years ago and all she does is sit around collecting commission checks while we’re working 24/7 to make her look good.

Arrogant Aaron never follows up on the leads that he’s supposed to. He never fills out his call reports and always comes in late to meetings.

Lazy Louise always has her phone off. She’s supposed to be working in the field, but we can never reach her before 10 a.m. She makes all her money from one account and never opens new ones.

Incompetent Ian is barely functional. Customers are calling us in the office because they can’t reach him. If we weren’t constantly cleaning up his messes, he’d have no accounts.

Anyone who relates to those sentiments should understand this: Laurie, Aaron, Louise and Ian all have at least one skill set that trumps their character (Please turn to page 40)

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February 2014

Building-Products.com

Your Best Rep Is a Jerk (Continued from page 38)

flaws. Their flaws are obvious. Their strengths are in areas that may not be immediately apparent. Punctuality is easy to measure. You either arrive at 7 a.m. or you’re late. Earning the business of a large account is more involved. It can take a combination of timing, luck, strategy, psychology and presentation. Arriving on a prospect’s doorstep three times a week at 7 a.m. shows tenacity, but it may also reveal desperation or stupidity.

Could these negative traits actually be contributing to the reps’ success?

Let’s take a contrarian perspective.

Luck – Successful people tend to make their own luck—endearing themselves to a new boss, becoming a widget expert just in time for the current widget expert’s retirement party, staying close by while another rep is badly botching a good account. Were things like this happening before this person’s lucky break?

Even if someone is blessed with serendipity, it rarely sustains if the person is incapable of handling it. As a sales manager, I have assigned prime accounts to reps who could not handle them. An account can be transferred,

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but if the client does not bond with the rep—for whatever reason—the relationship will not last. Being in the right place at the right time can help establish an account, but it takes work to sustain it. I’ve never encountered a situation where a client tolerates an incompetent rep for an extended period of time out of convenience. A bluechip account that churns out large commissions through no effort of the rep is the business equivalent of a Chupacabra. Urban legends abound, but I’ve never seen one.

Arrogance – Successful reps can come across as arrogant. It takes a certain type of person to embrace big accounts and engage in the kind of weighty deals that can significantly impact a company’s bottom line. Reps open to these challenges tend to see themselves as elite. Paperwork, meetings, non-sales-related issues, and even small accounts are beneath them.

They have more important things to accomplish. Their words, actions and body language convey their mindset to everyone around them.

Certain clients are drawn to egotistical reps because it feeds into their own ego. Years ago, I was in a situation where a key account requested a

February 2014

new rep. The customer felt his operation was high volume but low maintenance. His rep was slow to respond, bad with paperwork, and often went MIA when problems occurred. We stood to double our business by putting someone responsive on the account. Taking the customer at his word, we reassigned the account to a junior rep who was disciplined and agreed to devote significant time to the account. The switch resulted in no new sales and the account ultimately went back to the original rep. This customer saw himself as an A-list account. What he really wanted was the time and attention of his senior level rep. Psychologically, I believe he wanted to punish the rep whose attention he sought and came to look at the new rep as a demotion in his status/value, even though it’s exactly what he asked for.

Laziness – The 80/20 rule states that 80% of revenue comes from 20% of your accounts. Is it bad to focus exclusively on the 20%? One could make the case that it’s irresponsible to do anything else. Providing a C-list account with the customer service experience of a lifetime may warm (Please turn to page 50)

Building-Products.com

NEW Products

Steel Balusters

Steel balusters are now available for CertainTeed’s Panorama composite railing, which is capped with PVC. Measuring 5/8” thick and 26-3/4” long, the pre-cut balusters are powder-coated and hot-dipped.

Four styles—straight, twist, single basket, and double basket—can be used in both flat and stair applications.

 CERTAINTEED.COM (800) 233-8990

Decking for the Good Life

Next month, Fiberon will introduce it’s newest line of wood-alternative decking, Good Life.

The wood-plastic composite decking is three-sided, offers natural-looking beauty and low maintenance, and is resistant to mold, mildew, staining and fading.

Boards are sold in 12’, 16’, and 20’ grooved and 20’ square-edged lengths, with a flat wood grain.

Colors include Cabin (brown), Cottage (gray), and Villa (cedar). Matching fascia and lighting accessories are also available.

 FIBERONDECKING.COM (206) 290-4431

Heavy-Duty Fleet

Mineral Wool Insulation

Model 567 trucks and trailers by Peterbilt can be configured to meet a wide range of heavy- and severeduty applications.

Standard features include a PACCAR MX-13 engine with up to 500 horsepower and 1,850 lb.-ft. of torque, as well as a stiffer chassis for improved maneuverability, ride and handling.

Its resilient Metton hood absorbs impacts that can shatter or crack other materials.

Thermafiber’s UltraBatt brings the benefits of mineral wool insulation to custom home building and renovation projects.

The product is engineered to provide thermal comfort, fire protection, and sound control. In exterior walls, it rates as R-15 in 2”x4” construction and R-23 in 2”x6” walls.

It is made with 70% pre-consumer recycled content for both standard wood stud and steel stud sizes.

 PETERBILT.COM

 OWENSCORNING.COM

(800) 473-8372

Building-Products.com

(800) 438-7465

February 2014

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Building Products Digest

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41

Nailer for Pros

EWP Software Solutions

Senco’s new FramePro nailer weighs just 7.9 lbs. and measures less than 12” tall.

A low-profile design makes it easy to maneuver between wall studs and floor joists. The tool can drive offset round-head and clipped-head paper tape fasteners ranging from 2” to 3-1/4” long into any substrate, including engineered wood products.

LP Building Products has released Solutions 5.0, an update to its whole-house, CAD-based design program for engineered wood products.

New features include custom labeling, smart modeling, a new closure application for rim board, a tributary area and rim board feature, as well as automatically added squash blocks.

 SENCO.COM

 LPCORP.COM (888) 820-0325

(513) 388-2000

Transformative Railings

Transform is Railing Dynamics’ first railing system with a resin-based core with no wood fiber or wood flour.

The product has the look, weight and feel of real wood. An acrylic finish adds a painted, wood-like look, superior pigment retention, and resistance to weathering.

Customers can choose from four colors, two baluster types, and three top rails.

 RDIRAIL.COM (877) 420-7245

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February 2014

Building-Products.com

Solar Attic Fan

Owens Corning’s VentSure solar attic exhaust fan increases a roof’s efficiency and helps save energy throughout the year.

The quiet fan uses solar power to help keep the attic properly ventilated, making homes more comfortable and helping to protect the roofing system. With three possible positions, the solar panel can be swiveled for maximum exposure to light.

An optional energy-efficient electric backup is available, as is a remote attic monitor.

 OWENSCORNING.COM (800) 438-7465

Up With Safety

Werner’s new Podium ladder offers a larger standing surface and waist-high guard rail, to increase safety on the job.

A Locktop design securely and conveniently organizes tools and accessories at the top of the ladder, where they are needed.

The Edgetop bracing system increases the size of the ladder foot pad, braces the first step, and provides protection at every angle.

 WERNERCO.COM (888) 523-3371

Building-Products.com

February 2014

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The Look of Slate Up Top

Aledora roof tiles from InSpire Roofing Products look like genuine slate tile at a more economical price, with lighter weight and virtually no maintenance.

The 12” tiles have authentic texture, sharp and jagged tiles edges, and natural shadow variance. They also offer a 110-mph wind-uplift rating and Class 4 impact rating.

Colors include charcoal black, mist gray, olive, steel gray, sage green, red rock, and brandywine.

Danze’s Antioch kitchen faucet has a sleek, contemporary look.

The pull-out faucet has a 7” high spout, a maximum flow rate of 2.2 gallons per minute, and meets low-lead requirements of California and Vermont.

Three finishes are available: chrome, stainless steel, and tumbled bronze.

 INSPIREROOFING.COM

 DANZE.COM

(800) 971-4148

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Building Products Digest

Contemprary Kitchen Faucet

(888) 328-2383

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February 2014

Building-Products.com

Micro Pinners

Senco’s two new 23-guage pneumatic micro pinners are designed for woodworking and carpentry professionals.

FinishPRO 10 and 11 weigh under 3 lbs. and can fire headless pins ranging from 1/2” to 2” long. Other improvements include quick and easy loading, a more powerful motor, and an ergonomically angled pistol grip.

 SENCO.COM

(513) 388-2000

Advanced Sealer

Zinsser BIN Advanced from Rust-Oleum is a primer and sealer made with synthetic shellac.

The white finish covers stains and odors, sealing and hiding everything from pet smells to soot and lingering smoke damage from fire.

It reportedly offers excellent adhesion and can stick to slick surfaces, such as Formica, tile, glossy paints, and varnishes.

 RUSTOLEUM.COM (888) 855-1774

Building-Products.com

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More Composite Paver Options

AZEK has added three new products to its line of composite pavers, which are made with recycled tires and added plastics.

The new 8”x8” standard paver can be combined with smaller 4”x8” and 4”x4” pavers to increate visual interest. A resurfacing bullnose paver provides a finished perimeter edge, while a resurfacing transition paver has a slanted edge for improved transitions from the paver height to the level of the ground, substructure or walkway.

Both the 8”x8” and bullnose pavers are available in five colors: redwood, boardwalk, village, olive and waterwheel. The transition paver comes in redwood.

CertainTeed’s R20 Sustainable Insulation meets new 2012 IECC requirements for wood-frame walls.

Designed for use in standard wood stud and steelframe wall assemblies, the fiberglass product is available unfaced or kraft-faced.

It is manufactured with recycled and renewable content, including a plant-based binder, and contains no formaldehydes, dyes, acrylics, or unnecessary fireretardant chemicals.

 AZEK.COM

 CERTAINTEED.COM

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February 2014

Building-Products.com

Bamboo Dimension

Plyboo dimensional lumber from Smith & Fong is designed to be both substantial and decorative.

Made of bamboo, the interiorgrade product is available in amber and natural, edge and flat grain, in 2”x2”, 2’x4”, 2’x6”, 2’x8”, 2”x10”, 2”x12, and 4”x4”, in standard lengths of 72”, 96”, and 120”.

Other lengths and dimensions are available upon request.

Milwaukee Tool’s new rotary hammer is compact to reduce fatigue and increase user comfort.

The cordless M18 measures 12” long and weighs only 5.5 lbs.

It can drill more than 100 11/2” holes in poured concrete per charge.

 PLYBOO.COM

 MILWAUKEETOOLS.COM

(866) 835-9859

Simplified Software

The new 4.0 release of Epicor BisTrac a platform update to Microsoft .NET Framework, a simplified and streamlined user interface, and added functionality.

LBM dealers can now insert value-added price and time into a sales order, schedule work orders and sales orders together, and share

Building-Products.com

Compact Rotary Hammer

(800) 729-3878

these times with work crews via an Outlook calendar.

For distributors and dealers with multiple locations, the software has new tools to coordinate and optimize the movement of inventory between branches.

 EPICOR.COM

(888) 463-4700

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Building Products Digest

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47

COMPANY Profile Diacon Technologies

The turn-key approach to lumber protection

A

T D IACON T ECHNOLOGIES , the focus has always been on the science of lumber protection—in fact, that’s the company’s motto. However, Diacon is also interested in how information technology can strengthen this focus.

“Yesterday, Diacon was working hard to maintain the value of your lumber by preventing mold growth,”

says Konrad Tittler, managing director of sales and marketing at Diacon.

“Today, and into the future, we are focusing on adding value to your lumber.”

Since the early 1990s, Diacon Technologies has supplied North American mills with Mycostat lumber coatings that protect against mold, iron stain, and checking. Each year,

Mycostat is the preferred product for the production and delivery of 5 billion bd. ft. of mold-free lumber.

Diacon, which has dual headquarters in Vancouver, Wa., and Richmond, B.C., also developed a spraying system that ensures Mycostat is properly applied. Named Diaplex, the lineal and transverse spray systems are constructed of high

SMARTFLOW COMPUTER SYSTEM provides consistent, reliable feedback from the Diaplex Spray System, alerting mill managers if anything is wrong.

All photos courtesy Diacon

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February 2014

Building-Products.com

MYCOSTAT customers treat more than 5 million bd. ft. of green and kiln-dried lumber each year.

quality stainless steel. Using the most advanced technology, the spray system is both reliable and easy to use.

“Our customers include the most sophisticated and environmentally responsible lumber manufacturers in the world,” says Tittler, “We start by listening to our customers’ needs, then offer the components that allow them to enhance the look of their lumber, safely and cost-effectively.”

In the past, he says, a mill bought a drum of chemical and “we never heard from them again—unless there was a problem. We decided to become proactive, instead of waiting for a problem, by developing close relationships with our customers. The Diacon Service program is unique and unequaled in industry today and includes what is now the industry standard, the Diacon Retention program. We visit the mill, look at the situation, and collect samples of treated wood to test in our labs. Our customers love the idea of being able to measure the amount of Mycostat on their lumber and correlating that to protection time.”

In addition to the Diacon Mycostat and Service programs, Diacon developed turn-key programs tailored to an individual producer’s needs.

“We’re the only company in the industry to do this,” says Tittler. “We design, build, install and maintain the program, with the goal of making customers’ lumber look more attractive and retain its fresh-cut appearance.

Customers can opt for the total turnkey solution, or choose only those options that best fit their operation. ” Building-Products.com

A key component of this turn-key approach is Diacon’s Smartflow computer control and measurement system—introduced in 2008—which provides real-time feedback on the performance of the Diaplex spray system. The software is updated and refined on a regular basis, to provide consistent and reliable feedback on the coating process.

“We developed Smartflow to ensure everything works exactly as it should, 24/7,” Tittler says. “The system monitors the whole process and automatically alerts mill managers and other key personnel if anything is not right. The turn-key approach allows us to deliver the most complete mold-prevention program in North America.”

According to Tittler, the company has always operated with its customers’ best interests in mind, especially when it develops and introduces innovations.

“When a mill is producing 1,000 bd. ft. every half minute, it doesn’t take much for something to do wrong,” he says. “It’s so easy to mistreat, ship the material out, and then have mold and stain claims. If you’re not applying chemicals properly, you’re not protecting the wood properly.”

Future innovations, says Tittler, will include value-added products that are designed to change a regular 2x4 lumber commodity into a 2x4 lumber specialty product. “These projects are new and exciting to the lumber industry,” he adds. “No one has done anything like this before.”

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Your Best Rep Is a Jerk (Continued from page 40)

your heart, but should you do it? Reps who appear inattentive to accounts outside of their 20% circle are protecting their limited time and focusing their efforts where the results will be maximized.

Incompetence – Reps who can’t seem to figure out how to complete administrative tasks are often de facto delegating. The way they approach it may not be ideal, but the intended result is achieved. With their inside support staff clamoring to send samples, generate paperwork, and provide

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information, the rep can focus solely on sales.

Companies rarely fire high-performing sales reps just to teach the rest of the group a lesson in etiquette.

Ideally, all reps would be gracious, diplomatic, empathetic, disciplined, effective team players. If forced to select only one of those attributes, I’d pick the one that starts with “e” and doesn’t end with “pathetic.” The downside of harboring reps who produce well but behave shoddily is that they generate a lot of unnecessary drama and negative energy. Angry coworkers quietly rooting for someone’s

February 2014

comeuppance don’t contribute much toward optimal productivity.

If you have a star rep with behavioral issues, consider these steps: • Don’t preach about why their behavior is detrimental to office morale. Appeal to their own self-interest. People who aren’t angry with you are less likely to internally sabotage your sales efforts. It would be nice if reps behaved properly because it’s the right thing to do, but...

• Forget the MBA courses and executive sales programs, send the offending parties to a Dale Carnegie class (How to Win Friends and Influence People). There is a reason why these courses have been around since the early 1900s and are still wildly popular today.

• Remind them that small gestures of appreciation can go a long way.

Voicing a simple “Thank you” or showing up with a $7 box of doughnuts can quickly undo feelings of animosity. I’ve seen it happen.

• Talk frankly with your employees who are upset. If a star rep is being cut more slack than other people in the organization, it’s better to acknowledge it than deny it. Coach Jimmy Johnson led the Dallas Cowboys renaissance of the 1990s. When he assumed the coaching position, the Cowboys were a pitiful organization.

From 1986-1989, their win/loss record was 18-45. Johnson quickly cleaned house. He was unapologetically biased in his treatment of players. Former lineman Kevin Gogan explained to the Los Angeles Times, “I remember once when Michael Irvin came in late to a meeting… Jimmy looked back at him and said, ‘That’s okay, Michael, because you’re up here (holding his hand high).’ With Jimmy, you’ve got guys up there, and guys way down.”

Johnson unceremoniously cut future Hall of Famers Randy White and Ed Jones. Both were about a decade removed from being “up there.”

Cultivating high performers should be a priority for coaches, business owners, and sales managers.

• Monitor their progress on substantial new business (the reason you’re putting up with their BS, right?). It’s easy for reps to get in the habit of nursing one or two established accounts when those accounts are driving a lot of sales. There is a fine line between protecting your valuable time and coasting. It’s important to identify when that line has been crossed. Let’s say two accounts are generating Building-Products.com

$20,000/month in commissions for Arrogant Aaron.

You: “Aaron, you haven’t opened any new accounts lately, what’s up?”

Aaron (indignantly): “I’m making $20,000/month on these two accounts and you want me to waste my time prospecting for another $200-$300?

Not worth it.”

You: “Agreed. You’re one of a select few reps capable of finding and opening sizable accounts. I’d prefer you don’t engage with the small accounts. Now that you mention it, the last account you did open was a small one. What were you thinking? You’re our Reggie Jackson. Knock it out of the park or miss wildly, but don’t lay down a bunt. What kind of significant new business are you working on?”

When accounts get busy, reps should intelligently accelerate their efforts, not coast. Just as poker gets easier when you take the chip lead, adding good accounts becomes easier when you’re flush with business.

Counterproductive emotions like fear

IN Memoriam Robert J. Hoye, 84, longtime New England lumberman, died Dec. 26.

An Air Force veteran of the Korean War, he began his lumber career at U.S. Plywood, where he rose from sales to director of operations. Fifteen years later, he joined Georgia-Pacific in wholesale sales. In 1978, he joined Champion International, Portland, Me., to run its lumber operation.

Charles J. Schroeder, 94, founder of Schroeder Lumber Co., Oregon, Oh., died Jan. 12 in Toledo, Oh. A Navy veteran of World War II, he started the company, now known as Schroeder & Younker Lumber & Millwork, in 1951.

James “Buck” Harless, 94, owner of Gilbert Lumber, Gilbert, W.V., died Jan. 1 in Gilbert.

In 1947, he became manager and part-owner of a sawmill in Gilbert, eventually expanding it into the conglomerate International Industries, with holdings in timber, coal, real estate, and manufacturing.

and desperation fade; confidence and optimism grow. It’s the ideal time to cultivate better sales.

• Make them aware that by taking a self-centered approach, they’re really working without a net. It’s easy to tolerate boorish behavior from someone with the Midas sales touch. It almost adds to their renegade sales cowboy mystique. Eliminate their impressive sales numbers and the behavior becomes decidedly less endearing. If they hit a sales slump, their toxic behavior will certainly come back to haunt them.

Insufferable high-earning reps succeed in spite of their boorishness, not because of it. Successful reps do not need to create havoc. The best sales professionals delegate, prioritize, manage their time, and seize opportunities without alienating and offending the people around them.

– Stephen Ondich is the owner of Commercial Forest Products, Fontana, Ca. Reach him at (909) 256-4583 or sondich@commercialforestproducts.com.

Aubrey Floyd “Dick” Johnson, 83, retired co-owner and president of Pierce & Johnson Lumber, Dillwyn, Va., died Jan. 7.

He was a U.S. Army veteran.

Edwin E. “Eddie” Graham, 69, co-owner of Shamburger-Graham Building Center, Graham, Tx., died Jan. 6 in Richardson, Tx. Eugene Harrison “Gene” Alexander, 96, former owner and operator of Alexander Lumber Co. & Farm, Mooresville, N.C., died Jan. 1.

Robert Koiner “Bobby” Vaughan, 92, former manager of Sheffield Lumber, Franklin, Va., died Jan. 5.

He was a WWII Air Force veteran.

Eugene “Gene” Pingel, 90, retired co-owner of Vincent Lumber Co., Vincent, Ia., died Jan. 8.

A U.S. Army veteran of WWII, he joined Vincent Lumber in 1963, eventually acquiring a share of the business before retiring in 1985.

James Don Greer, 71, president and owner of Central Lumber Co., Lexington, N.C., died Dec. 29.

Helen Theodora Hartford May, 92, former co-owner of May Lumber Co., New Orleans, La., died Jan. 4.

She operated the lumberyard, as well as builder Kennedy Homes, with her late husband, Alexander May.

Paul LaVerne Book, 83, retired v.p. of McGowan Lumber, Slippery Rock, Pa., died Jan. 3.

Lewis “Pa” Justus, 91, retired salesman for Tahlequah Lumber Co., Tahlequah, Ok., died Dec. 26.

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HELP WANTED

JOIN OUR WINNING TEAM! CEDAR CREEK is looking for a few good men and women. We believe that our great

people are the key to our company’s success. Aggressive growth has created Sales, Operations and General Management opportunities across Cedar Creek’s expanding footprint.

Consequently, we’re looking for the very best people in our industry to help staff and grow our new and existing distribution centers across the country. Please contact us if you: • Have a successful track record • Can relocate for the right opportunity • Desire earnings and responsibility commensurate with your ambition • Are experienced in lumber and/or building products sales or operations For more information about Cedar Creek, please go to www.cedarcreek.com. If you’re interested in learning more about how you may become a key player on our winning team, please email your resume to abostic@cedarcreek.com for a confidential review of your qualifications.

PRODUCTS FOR SALE

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TRI-STATE LUMBER CO.

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Your Southern Yellow Pine Timber Connection Specializing in 6x6, 6x8, 8x8, 10x10 Tel. (662) 862-2125 • Fax 662-862-4900 email jgibson@tristatelumber.net

WANTED TO BUY WE BUY AND SELL PANEL STRIPS Plywood, OSB, particleboard and MDF by the truckloads. Lumber Source, Phone (800) 8741953, Fax 888-576-8723, email LumberSource@hotmail.com.

WANTED TO BUY

52

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February 2014

• More news • User-friendlier layout • Frequent updates every day • Smartphone & tablet accessible • Improved search features • Event photos • Videos • Surveys • Building products stock ticker Building-Products.com

DATE Book

Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

International Builders Show – Feb. 4-6, Las Vegas Convention Center, Las Vegas, Nv.; (800) 368-5242; buildersshow.com.

Lumbermens Association of Texas – Feb. 4-7, workshops, San Antonio, Tx.; (512) 472-1194; www.lat.org.

Indiana Hardwood Lumbermen’s Assn. – Feb. 5-6, convention & expo, Marriott, Indianapolis, In.; (800) 640-4452; www.ihla.org.

Northwestern Lumber Assn. – Feb. 5-6, Wisconsin lumber convention, Marriott West, Middleton, Wi.; (763) 544-6822; nlassn.org.

Southern Building Material Assn. – Feb. 5-6, show, Hickory Metro Convention Center, High Point, N.C.; www.southernbuilder.org.

New Jersey Building Materials Dealers Assn. – Feb. 5, regional meetings, Maywood, N.J.; Feb. 12, W. Trenton, N.J.; njbmda.org.

International Wood Products Association – March 5-7, annual convention, Renaissance Vinoy Resort & Golf Course, St. Petersburg, Fl.; (703) 820-6696; www.iwpawood.org.

National Frame Building Assn. – March 5-7, expo, Gaylord Opryland Resort, Nashville, Tn.; (800) 557-6957; www.nfba.org.

Southeastern Lumber Manufacturers Association – March 6-7, spring meeting, The Dolce Atlanta-Peachtree Hotel, Peachtree City, Ga.; (770) 631-6701; www.slma.org.

American Fence Association – March 6-8 , FenceTech/DeckTech shows, Mandalay Bay, Las Vegas, Nv.; (800) 822-4342; www.americanfenceassociation.com.

Kitchen Cabinet Manufacturers Assn. – March 9-12, spring convention, Bonita Springs, Fl.; (703) 264-1690; www.kcma.org.

North American Wholesale Lumber Association – March 9-14, University of Industrial Distribution, JW Marriott, Indianapolis, In.; (800) 527-8258; www.nawla.org.

Mississippi Lumber Manufacturers Assn. – Feb. 6-7, winter meeting, Natchez, Ms.; (601) 982-1731; www.mslumbermfg.org.

Northwestern Lumber Assn. – March 11-12, Nebraska lumber convention, Embassy Suites, Lavista, Ne.; (763) 544-6822; www.nlassn.org.

Monroe Hardware Co. – Feb. 8-9, market, Cabarrus Events Center, Concord, N.C.; (704) 289-3121; www.monroehardware.com.

Budma 2014 – March 11-14, Poznan, Poland; (317) 293-0406.

North American Wholesale Lumber Assn. – Feb. 13, regional meeting, Birmingham, Al.; (800) 527-8258; www.nawla.org.

Eastern Building Material Dealers Assn. – March 12, Ideas Show, Valley Forge Casino, King of Prussia, Pa.; (800) 296-3278; www.ebmda.org.

Northeastern Retail Lumber Assn. – Feb. 26-28, annual expo, John B. Hynes Memorial Convention Center, Boston, Ma.; (800) 292-6752; nrla.org.

Southern Cypress Manufacturers Assn. – March 12, annual meeting, Savannah, Ga.; (412) 244-0440; www.cypressinfo.org.

Handy Hardware Wholesale – Feb. 13-15, market, George R. Brown Convention Center, Houston, Tx.; handyhardware.com.

Long-Lewis Hardware – Feb. 15-16, market, Montgomery Civic Center, Montgomery, Al.; (205) 322-2561; www.long-lewis.com.

Florida Hardware Co. – Feb. 15-16, market, Doubletree Hotel, Orlando, Fl.; (904) 783-1650; www.floridahardware.com.

Greenprints – March 12-13, Atlanta, Ga.; www.greenprints.org.

Hardwood Manufacturers Assn. – March 12-14, national conference, Hyatt Regency, Savannah, Ga.; www.hmamembers.org.

Emery-Waterhouse Co. – March 14-15, market, Rhode Island Convention Center, Providence, R.I.; (800) 283-0236; www.emeryonline.com.

Illinois Lumber & Material Dealers Assn. – Feb. 17-19, convention & expo, Springfield, Il.; (800) 252-8641; www.ilmda.com.

Northwestern Lumber Assn. – Feb. 19-20, Iowa lumber convention, The Meadows, Altoona, Ia.; (763) 544-6822; nlassn.org.

True Value Co. – Feb. 22-24, market, Georgia World Congress Center, Atlanta, Ga.; (773) 695-5171; truevaluecompany.com.

National Roofing Contractors Assn. – Feb. 24-25, convention, Mandalay Bay, Las Vegas, Nv.; (847) 299-9070; www.nrca.net.

Roof Coatings Manufacturers – Feb. 24-25, annual meeting, Marriott, Las Vegas, Nv.; (202) 591-2452; www.roofcoatings.org.

Ace Hardware Corp. – Feb. 24-26, show, George R. Brown Convention Center, Houston, Tx.; (630) 990-7662; acehardware.com.

Progressive Affiliated Lumbermen Co-op – Feb. 25-26, market, Gaylord Palms, Kissimmee, Fl.; (800) 748-8900; pal-coop.com.

International Roofing Expo – Feb. 26-28, Mandalay Bay, Las Vegas, Nv.; (800) 684-5761; www.theroofingexpo.com.

Orgill Inc. – Feb. 27-March 1, market, Orange County Convention Center, Orlando, Fl.; (800) 347-2860; www.orgill.com.

Appalachian Hardwood Manufacturers Association – Feb. 26March 2, annual meeting, Boca Raton Resort Club, Boca Raton, Fl.; (336) 885-8315; www.appalachianwood.org.

National Wooden Pallet & Container Assn. – Feb. 28-March 1, leadership conference & expo, Harbor Beach Marriott, Fort Lauderdale, Fl.; (703) 519-4720; www.palletcentral.com.

Peak Auctioneering – March 1, LBM auction, Howard County Fairgrounds, Baltimore, Md.; (800) 245-9690; www.peakauction.com.

International Reflective Insulation Manufacturers Conference – March 5-7, London; www.rimainternational.org.

Lumbermens Merchandising Corp. – March 5-6, annual meeting, Tampa Convention Center, Tampa, Fl.; (610) 293-7049; lmc.net.

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ADVERTISERS Index

IDEA File Show Time

For more information on advertisers, call them directly or visit their websites [in brackets].

Arch/Lonza [www.wolmanizedwood.com]...........................Cover I

It’s not unusual for hardware stores to offer unique items and services tailored to the local community. But a Florida dealer takes it further, by acting as the ticket office of the town’s small theater.

“We’ve attended performances for at least 10 years or so,” says Larry Tonjes, owner of Cliff’s True Value Hardware, Lake Wales, Fl. “About five years ago, we started acting as the weekday box office of the Lake Wales Little Theater.”

The theater presents a full season: three adult plays, two for kids, and one for teens, with evening performances on Friday and Saturday, and a matinee on Sunday.

However, the theater has no budget for a website and is only open on weekends right before performances. Also, everyone connected with the theater is a volunteer—including the actors—so finding someone to operate a ticket booth at the theater, or in town, was a hit or miss affair.

“Before, people had to call the theater and someone had to call them back,” recounts Ray Bower, who volunteers as the theater’s treasurer and groundskeeper.

“With Cliff’s, someone is there to answer the phone, six days a week.”

Biewer Lumber [www.biewerlumber.com] .....................................3 BlueTarp [www.bluetarp.com].......................................................13 Boise Cascade [www.bcewp.com]..................................................4 BW Creative Wood [www.bwcreativewood.com] ........................46 California Redwood Co. [www.californiaredwoodco.com].........31 Center-Line Group [www.center-linetrailers.com] ......................38 Coastal Plywood [www.coastalplywood.com].............................26 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................53 DuraLife [www.duralifedecking.com] ...........................................19 Everwood Treatment Co. [www.everwoodtreatment.com].........33 Fasco America [www.fascoamerica.com]....................................36 Genova [www.genovationsdeck.com]..........................................27 Hancock Lumber [www.hancocklumber.com].............................50 Jaaco Corp. [www.jaaco.com].......................................................22 KOMA Trimboards [www.komatrimboards.com] ..........................5 Lumbermens Association of Texas [www.lat.org] ......................44 Matthews Marking Products [www.matthewsmarking.com] ......42 NewTechWood [www.newtechwood.com]...................................17 North American Wholesale Lumber Assn. [nawla.org]......Cover II NyloBoard [www.nyloboard.com].................................................23 Osmose [www.osmosewood.com].....................................Cover IV

Playgoers can also stroll into the hardware store, study the seating chart, and pay (cash only) for reserved seats or season passes. Customers who wander into the store looking for something else notice the theater posters in the store’s windows and ask questions. If not, staff members bring up the subject.

“We get a lot of ‘snowbirds’ in the winter,” says Larry, “so we mention the theater to see if they’re interested.”

Several years ago, since the first performances typically have the least attendance—as everyone waits for word-of-mouth-reviews—Larry and his family encouraged the local senior facility to attend then, and the tradition has continued.

“It fills up the seats and gets things going,” he says.

“Most important, it’s a fun event for the seniors and keeps them part of the community.”

Not surprisingly, performing such a valuable community service does have real benefits. “Most people buy something when they’re in the store to reserve or pick up theater tickets,” comments Larry. “The relationship brings in customers who’ve never been in the store before, so it does increase business.”

Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....45 Redwood Empire [www.redwoodemp.com].................................39 Roseburg Forest Products [www.roseburg.com] .......................21 RoyOMartin [www.royomartin.com] .............................................35 Screw Products [www.screw-products.com] ..............................40 Sherwood Lumber [www.sherwoodlumber.com]........................30 Simpson Strong-Tie [www.strongtie.com].................25, 47, 49, 51 Siskiyou Forest Products [siskiyouforestproducts.com]...........43 Sure Drive USA [www.suredrive.com]..........................................15 Swanson Group Sales Co. [swansongroupinc.com] ........Cover III Terminal Forest Products [www.terminalforest.com] ................34 TigerDeck [www.tigerdeck.com] ...................................................24 Versatex [www.versatex.com].......................................................37 Western Forest Products [www.westernforest.com] .................32 Western Red Cedar Lumber Association [www.wrcla.org] ........32

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