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JANUARY 2019
Building Products Digest
THE VOICE OF THE LBM SUPPLY CHAIN — SINCE 1982
LUMBER PRICES: 2019 • TRENDS IN ROOFING • SOUTHERN PINE UPDATE
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CONTENTS
January 2019 Volume 38 n Number 1
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Product Spotlight
Features
Departments
34 SOUTHERN PINE
10 FEATURE STORY
8 ACROSS THE BOARD 20 OLSEN ON SALES 22 THE REVENUE GROWTH HABIT 24 TRANSFORMING TEAMS 32 MOVERS & SHAKERS 39 SELLING WITH KAHLE 44 NEW PRODUCTS 50 ASSOCIATION UPDATE 52 CLASSIFIED MARKETPLACE 52 IN MEMORIAM 53 DATE BOOK 53 ADVERTISERS INDEX 54 FLASHBACK
PROGRESS CONTINUES FOR SOUTHERN PINE INDUSTRY, WITH NEW UPDATE FROM THE SOUTHERN FOREST PRODUCTS ASSOCIATION.
FORECAST 2019: WILL LUMBER PRICES CONTINUE TO FALL?
14 INDUSTRY TRENDS
GRAY IS HOT ON THE ROOF
16 COMPETITIVE INTELLIGENCE BPD
JANUARY 2019
Building Products Digest
THE VOICE OF THE LBM SUPPLY CHAIN — SINCE 1982
LUMBER PRICES: 2019 • TRENDS IN ROOFING • SOUTHERN PINE UPDATE
30 THINKING AHEAD
PUTTING FOREST PRODUCTS CAREER ON THE RADAR OF THE NEXT GENERATION
The lighter, faster, easier drywall tool.
40 WESTERN WOODS
WOOD FIBER PRICES CLIMB, PARTICULARLY IN THE WEST
Introducing the new Quik Drive® Drywall Tool Lighter in weight, more ergonomic and faster than ever — get ready for our new Quik Drive drywall tool. Whether you’re attaching drywall to wood or to steel, the PRODW provides precise, self-locking depth adjustment, a 360° tool rotation and an improved screw-feed mechanism to ensure you’re in and out of the job quickly. To learn more, visit go.strongtie.com/prodw or call us at (800) 999-5099. © 2019 Simpson Strong-Tie Company Inc. QDDRYWALL18
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ACROSS the Board By Patrick Adams
Control is an illusion cdon’t know about you, but I look in the mirror sometimes and I don’t recognize the person looking back at me. I don’t feel like that guy and I’m not sure that I think like a guy of that age. I feel like it was just a short while ago that I met my wife for the first time when I was just 22. While that young guy would be questioning what he did wrong to deserve what has just unfolded, this guy just wrapped up my son’s second birthday party. The little guy is asleep and my wife and I have finished cleaning up confetti, giftwrap, and what’s left of a piñata and a birthday cake a 2-year-old found more fun to smash than eat. I’m sitting on our back patio with a cigar and my thoughts, watching my wife in the kitchen making our house a home once again. It’s evening now and for the past several hours, I’ve sat back and watched the generations interact. Wise grandparents, uncles and aunts watch the kids with smiles and nods of their heads, no doubt recalling the times when their own kids were this age. My soon-to-be 8-year-old daughter, being the older sister, teaches her younger brother the fine art of cake smashing and just how to swing a stick to properly break this poor paper animal with a heart of candy. And then there are the parents. I watched my son processing and calculating this landscape of entertainment. Although there were presents, he was drawn to the empty boxes. As the candy fell and kids competed to grab it up, he seemed torn over whether he should hit it again or cry because the animal seemed hurt. There were no ponies or bounce houses or clowns. Just a good, “old-fashioned” family get-together in the backyard on a beautiful afternoon with laughter and memories. As I sit on the patio, I think, “This is my life…” Kids and parties and messes and chaos. Cleaning up only to have a mess again within seconds of waking up in the morning. No doubt a tantrum or two long before the first cup of coffee is poured. My wife will give me a pleading look that says “help” and I will fail in my attempt to be her knight in shining armor and will undoubtedly make the tantrum worse. I believe any success I’ve had in life has come from hard work, but also from not being impulsive. Instead, I plan, I think, and calculate and attempt to control outcomes. But now, the more I do these things, the more often they escalate to being uncontrollable. Halfway into the cigar I remember an old friend’s advice to me. We were in the real thick of things and he told me to “ease up.” He said, “Control is an illusion. Control is simply your ability to handle things as they come—not to control
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what comes and when.” It’s hard to not want to control things that matter. I want my family to be happy. I want my kids to grow up to be good adults, but to also have happy childhood memories. It dawns on me that maybe I’ve been wrong all of these years. Maybe we’re not meant to “control” anything. My kids just had a great time and went to bed tired with smiles on their faces. There were great stories and several tears of laughter at the “show” the kids were putting on. I got to see my crazy, healthy, handsome son turn 2, put him to bed, and tomorrow will get to see him wake up to do it all over again. It’s then that my wife comes out to the patio and gives me that tired, but loving and beautiful smile that I fell in love with so many years ago. She sits down next to me without saying a word and we just look out over the backyard in the quiet evening. There is a feeling that you get when all is right in the world and now is one of those times. Yes, control must be an illusion because on my best day, I could not have controlled a situation to become as fortunate as I am in being able to appreciate what is truly important in life. Here’s your assignment: stop what you’re doing right now. Go home, sit back, take a deep breath, and look in the mirror.
Patrick S. Adams Publisher/President padams@building-products.com
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Building-Products.com
FEATURE Story By Pete Stewart, Forest2Market
Forecast 2019
Will lumber prices continue to fall? he U.S. housing sector—a bellwether for economic health—has showed signs of stagnation (and even the prospect of reaching peak housing in this market cycle) in recent months. Forecasts for housing starts are simply overblown, as there isn’t much room for an increase beyond the 2018 level of 1.266 million units. As a commodity largely tied to housing starts and broader building and construction activity, lumber prices also reflect the general health of this market via supply and demand metrics. After steady increases beginning in fourth quarter 2017 (4Q17), lumber prices skyrocketed to new record highs in 2Q18 before dropping precipitously across the board over the last four months. Southern yellow pine lumber prices recently hit their lowest point since August 2017; Forest2Market’s SYP composite index price for mid-November was $376/ MBF—a 35% drop from the record high of $576/MBF achieved in May. Despite the one-two hurricane punch that recently impacted the South and the continued wildfires in the Pacific Northwest—extreme weather events that have significantly impacted forest inventories, harvests and supply—the drop in lumber prices over the last six months is largely, though not entirely, demand driven. Fewer new-home builds equals less lumber. The sudden reversal begs a serious question: Did the lumber market simply over-drive its headlights in the price run-up earlier this year, or are there more structural forces at work?
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Several dynamics are combining to impact starts and, by extension, the North American lumber market.
Supply Analysis
Housing starts kicked off 2018 with a bang, leading many to believe that there would be a gap in supply once the busy part of the building season hit. January starts were up 9.7% over December 2017 to a seasonally adjusted annual rate (SAAR) of 1.326 million units, and speculation began to drive lumber prices ever higher. But as the meat of the building season came and went and housing starts failed to live up to expectations (now on pace at a SAAR of 1.228 million units), lumber production numbers confirm that any supply concerns were exaggerated. Both U.S. softwood lumber production and total softwood
January 2019
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imports have increased year-over-year (YoY). Through August 2018, U.S. production was 23.8 BBF (+4.8%) and total imports were 10.3 BBF (+1.3%). Despite the tariffs on Canadian product, imports from Canada were only off 1.4% YoY to 9.3 BBF through August. Latin America (primarily Brazil) and European producers more than made up for the difference in Canadian volume; LatAm shipments to the U.S. totaled 306 MBF (+8.3%), while European shipments totaled 589 MBF (+65%) through August. We may see this trend reverse course when full third and fourth quarter trade statistics are reported; however, those numbers will be immaterial to this analysis. The data show that domestic and import supply was ample through the price run-up that began in 1Q18 and peaked in the second quarter. Neither U.S. production nor imports through August suggest any supply-side disruptions that would account for such a dramatic surge in price.
Decreasing Demand for Homes
“Housing is no longer a tailwind for the economy, but [so far] the headwinds are blowing very gently,” Bank of America Merrill Lynch economist Michelle Meyer wrote in October. One sign of a shifting housing market is slowing demand—including buyer traffic—for existing homes. Resales earlier this fall suffered the largest drop in 2.5 years to the slowest pace since November 2015. Though still high, resale price appreciation has been decelerating (below +6% YoY for the first time in 12 months) and the supply of existing homes, while still low, is gradually expanding; there were 4.4 months of supply in September, up from the year-earlier 4.2 months. Based on the behavior of the exchange-traded fund iShares U.S. Home Construction (ITB), which tracks a basket of 47 U.S. homebuilders and construction-related companies, investors apparently agree with Meyer’s sentiment. As of mid-November, ITB’s share price had fallen over 34% from its mid-January peak. Builders are in a tough spot, as they have been hit with a number of challenges this year including an increase in materials costs, land and labor shortages and a shrinking appetite of prospective buyers who are willing pay up. Real private residential investment (PRI) declined for a third quarter in 2Q18; as a percentage of total GDP, the decline has been in place since 1Q17. Although both metrics have receded only modestly from their corresponding recent peaks, they nonetheless paint a potentially disconcerting picture for the sustainability of this market cycle.
Increasing Inventory for Homes
Interestingly, especially since there is a general consensus that more new-home supply is needed, rising inventory is even more pronounced in newly-built homes. After meandering around an average of 5.3 months between
Building-Products.com
July 2013 and December 2017, new-home inventory has trended higher in 2018 (to September’s 7.1 months of supply). In addition, the ratio between starts and new-home sales reached 1.5 in September, which is in the top 14% of monthly ratios since January 1995. The implication is that unless the pace of new-home sales picks up, starts will ultimately be forced lower. With long-term Treasury yields helping to push mortgage rates upward, the median new-home prices less than 7% off November 2017’s record high, and resale appreciation only gradually slowing, it is entirely possible that housing demand could weaken further in coming months. Despite sustained high home prices (and surging prices in some markets) some regions are now drifting into the “buyer’s market” column.
Interest Rates
With home appreciation and mortgage rates trending higher, the reality is that many potential borrowers simply can’t make the mortgage numbers work. One way to measure the impact of inflation, mortgage rates and home prices on affordability over time is to use CoreLogic’s “typical mortgage payment,” which is a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. The number is calculated using Freddie Mac’s average 30-year fixed-rate mortgage rate with a 20% down payment, and it doesn’t include taxes or insurance. As such, the typical mortgage payment is a good measure of affordability because it shows the monthly amount that a borrower needs to purchase a median-priced U.S. home. The U.S. median home sale price in August 2018 ($226,155) was up 5.7% YoY, while the typical mortgage payment was up 14.5% YoY due to a nearly 0.7-percentage-point rise in mortgage rates over that period. Tight housing inventories coupled with rising home costs are a real barrier for potential homebuyers, but a typical mortgage payment that is rising at over twice that pace is a much more serious concern, and a number of forecasts call for even higher rates next year. Moody’s Investors Service has observed the deteriorating quality in mortgage loans noting that “The broad conditions under which loans are being granted have grown less favorable for future mortgage performance. For instance, home prices are no longer very affordable and rising interest rates are reducing refinancing incentives and prepayments.” Hence, “mortgages being originated today appear more likely to face a stressed environment within only a few years, [compared to] loans originated earlier during this long period of economic growth.” And that’s just mortgage rates, which function independently of the federal funds rate instituted by the Federal Reserve. Though speculative at this point, the Fed was expected to raise interest rates once in the final weeks
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of last year and, potentially three to four times in 2019, which will impact short-term and variable (adjustable) interest rates. Strategists warn that if the Fed tightens too much, economic growth could slump and trade wars could intensify, destroy demand and negatively impact earnings. The potential scenarios in the wake of these rate hikes are many. However, the impacts of continued increases would certainly discourage any expansion in new homeownership that would drive an increase in housing starts and additional demand for lumber.
Home Size
Not only have housing starts been decelerating since 2013, but home size has also been shrinking. Median floor area of new single-family completions peaked at 2,647 sq. ft. in 2015 and has subsequently been declining on trend (to 2,426 sq. ft. in 2017). The median new home cost a record $133/ sq. ft. in 2017, +30% relative to 2010. Apartments, by contrast, have been gradually expanding (2017 median: 1,096 sq. ft.) from 2013’s 1,059 sq. ft. If these trends continue, net changes in demand for lumber and other building materials could well be negative. While the trend of slightly-shrinking single-family home sizes may seem minimal, the cumulative impact of fewer builds using less lumber is resulting in diminished demand.
How Are Mills Reacting?
The tense trade situation with China has impacted regional log prices in both the Pacific Northwest and the South in recent months. On an annualized basis, shipments of Doug fir logs out of the Northwest are slightly down and averaging $221 per cubic meter (m3)—up 14% YoY; conversely, shipments of SYP logs out of the South are up 89% while the price has dropped to $141/m3—down 13% YoY. Domestic and export competition for logs in the Pacific Northwest earlier this year drove prices to sustained highs. After watching the steady rise in prices since 4Q17, regional lumber mills maxed out their log purchases in order to maintain inventories and beat what seemed to be a never-ending price run. But as trade disputes materialized, exports waned and the housing market sputtered, demand for logs cooled and prices have decreased as a result—much to the chagrin of many regional sawmills, who still have full log inventories that were purchased at peak prices earlier in the season. The
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decrease in lumber demand has driven many regional mills to reduce production; some are cutting operating hours or curtailing shifts, and others are temporarily curtailing production altogether until markets improve. It’s been “business as usual” for mills in the South, though, who have maintained production levels through the unstable rise and fall of lumber prices. However, these facilities have a much higher degree of flexibility than do those in the Pacific Northwest. Most notably, their log yard exposure is significantly diminished because there has been very little volatility in SYP log costs, which have remained low in the wake of the Great Recession of 2008.
The Verdict
Did lumber prices really crash in 2018? Not if we take a historical view using Forest2Market’s SYP price data in the chart above. In fact, we should be asking the inverse question: Why did lumber prices spike to historical highs? It is clear that the irregular peak that occurred from May-August was an anomaly likely driven by speculation around uncertain trade policies, overly optimistic housing start numbers and the likelihood of pinched lumber flows from Canada and the timber-constrained Pacific Northwest. Yet, none of these events materialized either disproportionately or collectively to a degree that would drive prices to new highs. Remove the May-August variance, control for a more historical trend and 2018 lumber prices are really
January 2019
in line with historical norms and current demand. While some of the market influences currently affecting lumber prices seem to be embedded at the structural level (trade disputes, tariffs, etc.), a cyclical decrease in demand is driving what only appears to be an extreme correction in price. This price change represents a natural return to equilibrium as market speculation has waned. As we well know, the U.S. housing market is cyclical—if fickle— by nature, and any commodity that is dependent on such a market will therefore experience volatility related to its cycles. To meet the modest forecasted increase in demand in the near term, there will be an estimated 6 BBF of capacity coming online by the end of 2020 via combined greenfield mill expansions and newly-rebuilt/refurbished facilities in the South. Lower manufacturing costs in new and upgraded mills will allow producers to efficiently manufacture SYP lumber through any market valleys or anomalies in the future. As CLT and other new mass timber building products continue to gain market share, this trend will add to underlying demand for solid wood products, which will benefit producers in both the South and the Pacific Northwest. - Pete Stewart is founder, president and CEO of Forest2Market (www. forest2market.com). Building-Products.com
INDUSTRY Trends By Wendy Bruch, DaVinci Roofscapes
DISTINGUISHED GRAY is trending on rooftops across the country. (All photos courtesy of DaVinci Roofscapes)
Let your gray show
What’s trending in roofing colors hat’s old is new again. That appears to be the roofing color mantra for 2019. When it comes to shake roofing products, homeowners have a “love/ hate” relationship with real wood shingles. They may love the look of aged cedar shingles on their homes, but they hate constantly maintaining the wooden shakes. Plus, there’s the ever-present headache of mold, algae growth, splintering and splitting with cedar shakes. While the various colors of aging shakes are in demand, the challenge of dealing with real shakes wears out homeowners. In 2019 the roofing industry can
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AGED CEDAR
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expect consumers to request everything from orangey/brown tones of aging cedar to darker tones of black oak for their roofs. In addition, they’ll lean toward sun-bleached grays for homes located in coastal areas.
Colors Crafted From Nature
In 2019, national color expert Kate Smith believes that looking backwards may point toward our future roofing color trends. “This year, trends dip into the past to find materials that were perfect when new, that have been made even better with use and wear,” says Smith, chief color maven at Sensational Color. “Surfaces that are ‘perfectly imperfect’ are emerging to give added meaning to the products we buy.” According to Smith, DaVinci Roofscapes was one of the first to see this trend coming and responded by giving customers exactly what they desired in the Nature Crafted Collection. “The Black Oak, Mossy Cedar and Aged Cedar colors offered on these roof tiles capture the look of natural shakes at a moment in the aging processes allowing the beauty to be retained for years to come,” says
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BLACK OAK
Smith. “These colors celebrate an instance in time when cedar shakes naturally take on a rich aged tone from exposure to the elements, and are aged to the point of perfection.”
Shades of Gray
Of course there are homes without shake roofs across the county. For those roofs we can expect to see tones of gray continue to serve as a trendy color in 2019. Universally identified in 2015 as a “hot color,” the range of grays on top of homes reflect everything from dark charcoal to light cobblestone. Undertones of green, cool blue and Building-Products.com
black can pop out in different gray roofs, giving homeowners the ability to work from the top down to add unifying colors to their siding, window trim, and entry door. Year after year, shades of gray on the rooftop attract the attention of homeowners. Perhaps it’s a mental kickback to the hardiness of real gray slate on a roof, or maybe it’s because gray has a sexy appeal to people. “Women openly sigh over the gorgeous gray locks of George Clooney, Richard Gere, and Jon Stewart,” says Smith. “And I’ve seen jaws drop on men when they see pictures of Jamie Lee Curtis, Diane Keaton, and Blythe Danner. People are embracing gray on top… and this includes the top of the home.” Smith, a trends color forecaster, relates that grays work beautifully on the roof because the neutral tones complement nature and come in so many different shades. A look at any roofing manufacturer’s product offerings shows options of gray including flint, granite, natural stone and even silver fox gray. “A gray roof has a stately, refined look without being dull,” says Smith. “And, a blend of grays is a wise choice that will live up well over the years and allow a homeowner to change out the colors of their siding, trim or main entry door. The universality of a multi-hued gray roof means it will look just as regal in 50 years as it does the day it’s installed.”
Roof Colors with 2019 Trendy Colors
As Smith adds her insights into roofing colors for 2019, she relates that color trends this year are all about connecting, disconnecting and reconnecting. “Top paint brands seem to be identifying color trends that leap into three unique categories for 2019,” says Smith. “People are bonding with these popular colors in their many day-to-day experiences. We’re seeing them incorporate these colors on the exterior of their homes, which means roofing colors will be selected that complement these popular shades.”
Connecting
One of the growing trends in America is for people to connect with their roots. Whether purchasing a DNA kit or going online to track their genealogy, it’s now easier than ever for people to connect with their ancestors. According to Smith, exploring our heritage and celebrating a person’s lineage shows up in the colors they gravitate to on a regular basis. “The colors of this ‘Connect’ palette have a well-worn look,” says Smith. “It’s almost like they are ‘comfort colors’ handed down from another generation. Each hue is a toned down version of a color that was once brighter, but has now mellowed with time. “These ageless hues blend past, present, future and cross cultures. It’s easy to see how a home exterior could reflect these colors. For example, starting at the top of the home, you could have a composite shake roof in a rich Black Oak blend, which is a very trendy roof color right now. Then, working your way down the home could be softer, neutral tones. But, when you get to the front door you can connect the entire exterior with a powerful punch of Cavern Clay or Dark Hunter Green.”
Disconnecting
For many people, handheld devices have fooled us into thinking we can continually multi-task. However, Adam Gazzaley and Larry Rosen, authors of The Distracted Mind Building-Products.com
SLATE GRAY roofing coordinates with a range of home exterior colors and styles.
and other studies, show that true multi-tasking is a myth. Our brains focus on one thing by shutting out others. What does this have to do with color trends and roofing? As people begin to understand the need for fewer distractions, they disconnect and gravitate to softer hues and more subtle tones. “At the intersection of high-speed connections and calm minds, we find inspiring neutral colors that defy being easily named,” says Smith. “They’re not quite gray or taupe or tan, but have an almost magical ability to blend with an unlimited range of colors. “Again, think about how popular tones of gray have become in the past several years. Whether a warm or cool version, grays have exploded in everything from roofs to interior quiet spaces in the home.”
Reconnecting
Like hamsters on a wheel, many aging homeowners are getting tired of seeing the same scenery in life. The current world situations and political conflicts can be overwhelming. When the world around us feels like it has gone crazy, we turn to family, friends and homes to find happiness. According to Smith, comfortable surroundings in upbeat, happy colors make us smile. “Golden yellows, earthy light terracotta and sky blue are just some of the colors that help people reconnect,” says Smith. “These are joyful, nurturing colors that remind us to take a deep breath— and that everything and everyone is going to be okay.” People wishing to create a more welcoming, upbeat exterior to their homes can use many of the colors Smith identifies in her “Reconnect” color palette. “Again, choosing shades of gray to top off a home is a winner,” says Smith. “Then homeowners can play off the gray roof and paint the entire exterior in a sunny yellow or fern green. For less color, a neutral light gray can be used for the siding, but add a pop of color on the front door, shutters or trim. People should not be afraid to select a color like Wild Lilac or Summer Sunset. These may be just the right splashy colors to help a homeowner ‘reconnect’ in 2019!” Wherever you’re located, the winning colors for roofs in 2019 are shades of gray, plus gaining natural woods. Focus on those colors and you’ll create ageless looking roofs that will stand the test of time. – Wendy Bruch is marketing manager for DaVinci Roofscapes, Lenexa, Ks. (www.davinciroofscapes.com). January 2019 n
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COMPETITIVE Intelligence By Carla Waldemar
Trusses to dresses ellogg Supply, of Manteo, sited on the Outer Banks of North Carolina, is a family-owned operation serving customers since 1946. Bravo. But this is a success story (is it ever!) not because of what it’s done throughout all those decades but because of a way-out-of-left-field break from that very past. Forgoing “the way we’ve always done it,” the company recruited a young dynamo who’s now its CEO. Fella named Joe Gaca. Were he in the ballgame business, he’d either have been (1) banned from the field for not playing by the rules, or (2) enrolled in the Hall of Fame. Instead, Joe was a teacher, toiling as assistant
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CREW IS READY for business at the grand opening last October of Kellogg Supply’s new location in Edenton, N.C.
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principal at a failing school with the mandate to improve performance. But a funny thing happened on the way to the classroom. As he tells it, “I lived next door to a man who owned a lumberyard. Every once in awhile, I’d get a call asking me to join the operation. Finally, in Year Five, I said to myself, ‘Know what? You’re not married, no kids; you work 72 hours a week and should also be going to graduate school.’ Soooo, I decided to try it for a year.” It’s now going on 14. “For me the appeal was, the company is family-owned. And all new to me: I had no idea what I should be doing. I started out in the yard, then moved on to the sales counter, then commodities purchaser. I worked my way up to assistant manager, store manager and then CEO. I learned the business from the ground up. Sure, there were hiccups along the way, but I was not too proud to say, ‘Hey….’ You take the information you have, analyze it, and make decisions based on that. “It was nice to walk in without a precise idea of how things should be, and to be able to make an evaluation. It became my responsibility to improve efficiency. I wasn’t afraid to get my hands dirty, and that won me buy-in from our teams, including the management team (their longevi-
KELLOGG widened its net to include Cottage Shop furnishing stores... Building-Products.com
ty was very helpful). Everybody was willing to change, to learn—and it could very easily have gone the other way. “I looked at invoicing, technology procedures, inventory processes. Instead of ‘that’s not how we did things before,’ they jumped aboard. I never was made to feel like ‘the new guy.’ Instead, it was ‘Let’s figure it out together.’ I’m not afraid of failure, and we’re all moving in the same direction.” Joe was tasked with heading up commodity purchases. “Luckily, I came in at a downtime in the commodities market. I got myself some history from old sales documents and then saw how things were now moving in the opposite direction: I had that luxury—for instance, not having to commit to x-truckloads in order to obtain a delivery. With time on my side, I was able to look at our records with vendors to see what partnerships had been successful, and which could be made better: how to strategize a program that would be better for both of us. It made a great foundation for relationships, and the way to grow those.”
The operation Joe stepped into, and now heads, includes four building-material centers, a stand-along Design Center, and three free-standing retail venues (more on those later). Each, the boss says, has its own personality: no cookie cutters. “Although 85% of our customers are contractors, that ratio is a little different in each store. The managers can make their own individual decisions, based on their particular clientele. That way,” he says, “they’re more vested. If they decide to add Hunting and Fishing, say, then they really try to sell it.” Those contractors are building cus-
tom homes stating at $200,000 and spiraling well beyond $2 million in this fabled islands location, where beach property is prime. Which makes a dumb reporter assume that cost of construction isn’t a huge factor. Wrong! “It’s no different here. The competition’s no different on these islands—in fact, it’s even crazier! It includes everything from big boxes to other successful indies.” So, why do builders choose Kellogg? “They know the longevity of our team, and this is in an environment that relies on long-term relationships. They can count on how you
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... AND MUDPIE boutique for kids and moms. Building-Products.com
GENERAL CONTRACTING
DESIGN AND PLANNING
PRE-ENGINEERED BUILDINGS
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LIGHT-HEARTED holiday photos are a popular feature of Kellogg’s social media outreach.
respond to them; how you help them, get them answers. (They’ve got my direct phone number). It’s a cliché, but it’s not about selling products: Rather, it’s what you can do for them, how you respond to them, and make it easy for them to deal with you. For instance, when it comes to returns, they don’t have to deal with a corporate office where you’re just a number—and we’re the only locally-owned company here. You get your questions answered without being transferred 10 times.” So service, then—like just-in-time delivery? Wrong again. Kellogg tries its darndest, “but our location in the Outer Bank islands means that if it’s rainy, windy, no ferries. So you’ve got to have flexibility.” Customer service jumped up another notch with the launch of Kellogg’s Design Center—the usual host of elements from windows to mouldings and more. Its twist is that, while contractors are invited to bring in their clients to kick the tires, often it’s the contractor himself who now has a dedicated center in which to make decisions. That’s because much of the islands’ new construction is in rental homes erected by developers or individuals looking for added income. Thus, the new Deluxe Houseware Package concept was born. “In a client’s first investment home,” Joe explains, “they pour their heart and soul into choosing all the accessories. But eventually, on ensuing ventures, it becomes more of a business, this furnishing of a house for 24 occupants: dinnerware, towels, everything. So with this package, we provide all that.” The concept sprang from Kellogg’s already-successful Cottage Shops. “These are retail stores where you can decorate your home, pick up souvenirs.” Huh? Now you’re selling everything from trusses to dresses?
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Not so out-there, after all. As Joe sees it, “The building industry is so cyclical, and there’s not a lot of year-round demand here, so this [retail operation] helps offset things in the slow months. Even in the downturn, they continued to grow.” Which led to another experiment that succeeded. Kellogg opened a kids-and-moms-focused store called Mudpie. “As a Cottage Shop brand, it did very well for us, so that we partnered with the vendor and opened the store.” Thus, there’s a lot of word to be spread, and social media helps. Kellogg is involved in FaceBook, Pinterest, Instagram, Twitter and the blogophere. “We need to get better,” he’s the first to admit, “but we’re beginning to integrate what we post to make it easier to share the culture of the company. On our blog we announced a silent auction, and recognize team members. The posts that gain the most attention are pictures of Kellogg doing something fun, like holiday photos or the sharing of ideas, such as color trends.” Of course, Kellogg corrals social media to publicize events, too. “Events are better than just having a sale. People want an experience,” he’s learned, “not just 20% off. They turn out for our beach glass jewelry classes. The pumpkin carving. A duck expo, with duck-calling contest. Our Christmas tree, with cookies and hot chocolate. It’s through these experiences,” he notes, “that we build relationships. We get our web-sales customers to come in for a visit. And first-timers become repeats.” What’s ahead for the company? Instead of the usual responses such as “expanding our market” and “improving customer satisfaction,” Kellogg’s keen analyst-in-chief has a list of specifics to achieve these universal goals, starting with looking at adding a door shop (“It’s on the agenda”); improving the technical part of deliveries, such as relaying photos on devices; an increased presence on social media; and different inventory management, including data analysis. Also, “Our stores are up and running, so we’re scouting for the next location. “We’ll also continue to analyze sales—for instance, if someone picks up Sheetrock but not the tape—why? With doors and fasteners, we figure we’ve got the customer base, so, why not try them, too? Then we make it happen, looking at ‘Where’s it going to come from?’ This kind of analysis will help direct our growth.” And, looks like, Joe will be right there to lead the troops. “This is the longest job I’ve ever had,” he confesses. “I never expected I’d be here 14 years; it was not on my radar. But I’m excited to work with our teams, which take on different projects and move in the same direction on them. The owners allow me free rein, including expansions. If I said “a Hunting and Fishing shop” or “two more building supply locations,” they would support it. They allow me to experiment. For instance, going ahead with women’s clothing? Amazing!” Combine analytics with relationships and you come up with outside-the-box ideas that succeed. Amazing is right. Carla Waldemar cwaldemar@comcast.net Building-Products.com
OLSEN on Sales By James Olsen
The gentle art of changing the subject Customer: “What do you have on studs today?” Master Seller: “We have lots of options. So, how many can you use?” (We add the softeners “we have lots of options” and “so” to make the transition smoother than “how many can you use?” which is too direct and off-putting.)
I Agree With You
ne way to change the subject is to have a subject! To control our calls, we need a plan. Next, we need to be able to change the subject. If we have prospected and qualified our customer properly, we should already know what they buy and be ready to promote those products to them. Sadly, many sellers call customers and say some version of, “What are you needing right now?” This approach irritates customers because these sellers are asking the customer to do all the work: “Tell me what you want, how much, and how much you want to pay, and I’ll shop it for you.” This brings almost no value, creating poor treatment. These salespeople bring it on themselves and blame the customer. The reason salespeople don’t prepare their calls is because they will have to prepare for 40 or 50, but will only get 20 customers on the phone, so they don’t prepare any. Instead of over-preparing, they don’t prepare at all!
O
A Well-Planned Call
A great sales call: 1. One or more products ready to promote and sell on every call. Master Sellers have several products and several options on each. Struggling sellers tell me, “It’s tough to get customers to come to the phone.” I say, “Yes, because when you do get them on the phone you aren’t ready; you waste their time, so of course they don’t come to the phone.” 2. Three reasons why what we are offering is a good deal for the customer. 3. Be ready to ask for the order, overcome objections (change the subject), and ask again. 4. If the customer insists on shopping it a bit more, change the subject and set a firm appointment for last look.
How to Change the Subject
“So” is a very powerful transition word. Many sellers—Quotrons—answer customers’ questions like dutiful students speaking to the headmaster. Master Sellers give an answer then use “so” and a question of their own to take control of the call. Customer: “What do you have on studs today?” Quotron: “I can get some into you at $350/MBF.” (Then dead silence while dutifully waiting for instructions.)
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“I agree the market is coming off. Many of my customers are taking advantage of these falling prices to pick up some great deals. We just picked a block of 2x4 104 5/8” out of ABC sawmill your favorite stock, with flexible shipment and a great price. How many of those can you use?”
And That’s Exactly Why
Customer: “This market is coming off. I’m going to wait.” Us: “It is coming off. That’s exactly why we should look at our 12’-16’ in Utility. We always have a tough time finding the tally we want. With the market showing weakness, now is the time to get tough tallies at good prices.”
Most of My Customers Buy Direct
Customer: “I buy direct.” Us: “Perfect, most of my customers buy direct. It’s a great way to buy. What I do for them is show them a part of the market they can’t see buying direct, so let me ask you this, what are your main three items?”
Speaking Of...
Customer: “This thing is coming off big time; I’m going to wait.” Us: “Speaking of coming off, a supplier just came to us and asked us to make an offer. We made one we thought for sure they wouldn’t take, but they did. We bought five cars of 2x4 14’, your key length, at a heck of a price. How many can you use?” We must remember that our customers are not our bosses or our grade school principals. We share information with customers as partners. Respect, yes; servile obedience, no. To succeed in sales, we must control the conversations we are in. The gentle art of changing the subject will become easier with practice.
James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
THE REVENUE Growth Habit By Alex Goldfayn
Call friendlies this work because I was in front of her.” He gave her the back-scratcher with his company’s name on it. And when she got the itch, she picked it up and used it. He called her. And then when she needed him, she called him. That’s how it works. And that’s the power of the phone call.
Nobody Calls Anymore
was interViewing a salesperson for one of my clients, and he brought up a customer of his who he was having some trouble getting on the same page with. He felt like they weren’t connecting with each other. She was impatient with him, and he wasn’t sure why. He asked me what he should do. I said, “Call her.” She’s a friendly. He said “Okay, and…” Me: “And talk to her.” Him: “About what?” Me: “About how she’s doing.” Him: “Really?” Me: “Yes, she will appreciate it.” Him: “Really?” Me: “Yes. You’ll have a nice conversation.” He was dubious. But he went and did it. I didn’t know this until I was doing this client’s live full-day workshop, and this salesperson raised his hand to tell the story: “Alex, I just want to tell this story to the group. Alex told me to call this customer, who I wasn’t connecting well with. And I did it.” He had my attention. “She picked up the phone, and I told her it was me, Andy calling.” Customer: “Hi, what do you need?” Andy: “Nothing, how are you doing?” Customer: “Fine, what do you want?” Andy: “Nothing, just checking in. I was thinking about you and wanted to reach out.” Customer: “Okay, what’s wrong?” Andy: “Nothing’s wrong. I don’t need anything. I’m just saying hello. How have you been?” Customer, stunned: “Really?” Andy: “Really. How’s your family.” Customer: “Nobody asks me that. Nobody calls me like this.” Andy: “I know. That’s why I wanted to.” Customer: “Wow, that’s nice.” They had a lovely conversation, he relayed. He never brought up business or products or services. But guess what? Two weeks later she called him and gave him quite a bit more work. I asked Andy if he thought she would have called him like this if he didn’t make his incredibly high-impact call. His answer: “No chance. She wouldn’t have even thought of me. She only gave us
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We assume that our customers get phone calls from their suppliers and partners all the time. But think about your own days at the office: how many one-on-one phone calls do you get from your own suppliers? You might have conference calls. Or the supplier may call when there’s something urgent or terrible happening. But what about proactive “How are you, how’s your family” calls? Not many right? How many in the last month? Probably not even one, right? We assume our customers are fighting off phone calls all day. This is not true. Your competition, because they are also human, deal with the exact same fears as you do. And they are not reading this book. Want to stand out? Pick up the phone.
All the Good That Happens When We Call
Here’s a list of all the goodness that you create when you pick up the phone: • You are standing out from the crowd with this customer, because the competition is not using the phone like this. • The customer will be happy to hear from you. Once they get over their shock about you not needing anything from them, you will have a very pleasant conversation. • You will have an opportunity to ask the customer what they are working on in a relaxed setting. And they will answer. Arming you with information you would simply not have otherwise. • You will be able to tell the customer about other products and services you can sell them to them. • Your proactive phone call will demonstrate to the customer that you care and that’s really all customers want. We human beings want to know that the people are working with care about us. • If you call a customer regularly, they will send you more business. Why? Because you’re present. You will be top-of-mind, and the competition. The back-scratcher will have your name on it, not the competition’s. There is no downside to calling customers. Only great value, to them, and to you. – Excerpted from Alex Goldfayn’s 2018 Wall Street Journal bestseller, Selling Boldly.
Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com (847) 459-6322 Building-Products.com
What’s inside is what counts
Windows and doors protect the inside of homes from the elements, but what protects the windows and doors? Wolman® AG surface treatment is WDMA Hallmark certified to protect wooden window and door components from termites and decay. Wolman® AG surface treatments are low in VOCs. Learn more at WolmanizedWood.com/surface.
TRANSFORMING Teams By Paige McAllister
More federal and statebased changes for employers are coming n 2018, the federal government had fewer than average laws passed that impact labor and employment law. This was due to focus on other areas as well as political gridlock. There were a few changes that employers should be aware of: New FLSA rules for handling tips: The Consolidated Appropriations Act restricts an employer from keeping tips received by its employees for any reason, including allowing managers or supervisors to keep a portion of those tips. This act also repealed a previous ban on “tip pooling,” requiring tipped employees to share tips with non-tipped employees, as long as the employer does not take a “tip credit.” Changes to tax credits: Under the Tax Cuts and Jobs Act of December 2017, certain exclusions for businessrelated deductions were eliminated, including for employer-paid relocation, transportation, and entertainment expenses. This act also eliminated the allowance to deduct certain expenses related to payments made as part of nondisclosure agreements for sexual harassment settlements. Looking ahead to 2019, here are some trends or topics about which employers should be aware: Immigration: There were no laws related to immigration enacted in 2018 and few anticipate there being any enacted for the next year or two. For now, most immigration initiatives such as DACA protections remain in place. However, employers can expect increased ICE activity and USCIS initiatives to enforce the administration’s focus on immigration.
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NLRB: With Republicans gaining control of the National Labor Relations Board, the Board is likely to continue their more employer-friendly decisions in 2019, such as reversing the previous Board’s decision regarding joint employment standards and restricting the rights of unions, union representatives, and employees. The NLRB also recently announced they are working to facilitate quicker settlements and resolutions by expanding the Alternative Dispute Resolution (ADR) program. Department of Labor: The Wage-and-Hour division has been working on revamping the white-collar overtime rules, which are expected to be released in 2019; they are also expected to clarify regular rate of pay calculations for overtime. The DOL is expected to release its own guidance on joint employment in the upcoming year. LGBTQ protections: Despite indications otherwise, the U.S. Supreme Court will not take up cases challenging LGTBQ discrimination decisions. This leaves legal interpretations for federal workplace protections for LGBTQ employees in limbo for now so employees may need to defer to state and local laws. While the federal government had most of their labor and employment bills stall in Congress, the states were busy passing and enacting laws impacting wage rate, sexual harassment prevention, sick time, and many other areas. Some of the changes that will be in effect as of January 1, 2019 include: Minimum wage increases: While the federal minimum Building-Products.com
wage has remained $7.25/hour since 2009, 29 states have or will have minimum wage rates higher than that. Twenty states (Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, and Washington) and the District of Columbia will have increasing minimum wage rates effective in 2019. Note: Many cities and counties have also implemented higher minimum wage rates so the highest rate would apply. Predictive scheduling: Laws focused on employers in retail, food service, and hospitality industries have recently gone into effect in Oregon and several cities and are in the legislative forecast in at least 12 other states. These predictive scheduling laws require advanced notice when posting a schedule (ranging from 48 hours to two weeks depending on state law) and restrict or ban employers from scheduling on-call shifts and adding pay incentives for these shifts. Salary history: In the effort to create more gender equality for wages, three states (California, Connecticut, and Hawaii) are joining six other states in enacting laws preventing employers from asking about an applicant’s previous compensation history. Addressing some forms of compensation such as benefits and bonuses, as well as how to handle if an applicant offers the information varies based on specific state law. Sexual harassment prevention training: Several states have recently passed laws creating or revising the requirements for sexual harassment prevention training to be conducted regularly, usually annually. Among states that recently enacted new or changed requirements are California, Delaware, and New York. Earned sick time: Recent laws in Michigan, Minnesota, New Jersey, and Texas implemented or expanded the requirement for providing sick time to employees but vary as to whether the mandated sick leave is paid or unpaid. Other states (Arizona, California, Connecticut, Massachusetts, Maryland, Oregon and Vermont) as well as some cities and counties already have a mandatory sick time law with differences as to how much time and the allowable reasons for taking the time. Legalized marijuana: While some states (Michigan, Montana, and Utah) passed laws legalizing medicinal and/or recreational use, these impacts expand into the workplace as it may change how employees react to a positive employment drug test. None of these laws change employers’ ability to prohibit employees from being under the influence at work as with alcohol or other prescribed drugs. If you are unsure what applies to your company given the new federal landscape and variations in laws from state-tostate and city-to-city, contact Affinity HR Group to help keep you informed and compliant! Affinity HR Group wishes you a happy holiday season and a great 2019! Paige McAllister, SPHR Affinity HR Group contact@affinityhrgroup.com Building-Products.com
Where Decision Makers Grow
2019
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U.S. LBM Holdings has acquired Deering Lumber, Biddeford, Me., increasing the chain’s locations in Maine from two to five. Founded in 1866, Deering Lumber operates three locations in the state, serving custom home builders and remodelers across southern and coastal Maine and along the New Hampshire Seacoast. Deering Lumber will continue to be led by president C.D. Armstrong. “A strong customer base, diverse product offering, and team focused on customer relationships make Deering Lumber an ideal addition to our family of companies,” said U.S. LBM president and CEO L.T. Gibson. “By adding a market leader in Deering Lumber, we’re expanding our reach and customer base in the coastal New England residential construction and renovation market.”
Richmond and Virginia Beach, Va.; and Raleigh/Durham, Greensboro and Wilmington, N.C. Similar to the model for its DC in Bethlehem, the new location will be dedicated exclusively to the sale of engineered wood products. It will stock RigidLam LVL and RFPI series I-joists from Roseburg, NI series I-joists from Nordic Structures, and StructurePRO treated glulam. Outside sales reps Brian Johnson and Jeff Mc Laughlin will lead the sales effort. “We’ve recognized for some time now that our high-service model would be well suited for this market,” said Todd Lindsey, president of Eastern Engineered Wood Products. “We are excited about the opportunity to introduce our unique value proposition to customers in this new territory and to simplify what is often considered one of their most complex product offerings.”
Detroit Area Millwork Suppliers Join Forces
Arauco Renames North American Operations
US LBM Buys Maine’s 3-Unit Deering Lumber
Mans Lumber & Millwork, Canton, Mi., has acquired Washtenaw Door & Trim, Ypsilanti, Mi. Washtenaw Door & Trim has been “the go-to place for custom doors, moulding, stairs and hardware” for the greater Ann Arbor and Ypsilanti area since 1974. “We are honored to have Laura Spears and Washtenaw Door & Trim become part of the Mans family,” said Doug Mans, president, Mans Lumber & Millwork. “Laura’s reputation for providing the highest level of customer service and products is well-known in the community, and we have the highest respect for her values and success.” With the deal, customers of Washtenaw will have access to the complementary products offered by Mans. Washtenaw is just four miles from the Mans’ showroom and lumberyard in Canton. All staff will be retained and become part of the Mans team.
Eastern Engineered Expands into Mid-Atlantic Region
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Worker Dies at Louisiana Mill
Authorities are investigating a fatal accident at Boise Cascade’s plywood mill in Florien, La. Employees were changing a lathe blade Nov. 18 when the equipment swung down and pinned 24-year-old Tory L. Rainer. Co-workers lifted the lathe off him and initiated CPR, but were unable to save him.
G-P Expanding in Southeast
Eastern Engineered Wood Products, Bethlehem, Pa., has opened a new distribution center in Emporia, Va. The 15-acre parcel, in close proximity to Interstate 95 and US 58, will expand the distributor’s delivery footprint from western Connecticut to North Carolina and include new large markets such as Washington, D.C.;
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To streamline its operations, Arauco has reorganized its three U.S. entities under a new name, Arauco North America, Inc., effective January 1, 2019. Arauco Wood Products, Arauco Panels USA, and Flakeboard America Ltd. will integrate to provide the same composite panels, plywood, moulding, lumber and pulp products, while operating under the shared name. Simultaneously, its Canadian entity Flakeboard Company Ltd. changed its name to Arauco Canada Ltd.
Georgia-Pacific broke ground Nov. 30 on a new lumber mill adjacent to its existing plant in Warrenton, Ga., days after starting up a new 300,000-sq. ft. mill in Talladega, Al. In Alabama, the new $100-million plant was built at the site of its former plywood mill, which closed in 2008. The new facility will initially produce about 230 million bd. ft. per year, with
January 2019
plans to ramp up to 300 million bd. ft. In Georgia, the new 340,000-sq. ft., $135-million mill is expected to start up in the summer of 2019, at which point the current facility will be dismantled. The vastly larger new mill will produce up to 350 million bd. ft. of lumber annually—triple the capacity of the current operation.
DEALER Briefs LaValley Building Supply, Newport, N.H., lost a warehouse in a Dec. 7 fire that also destroyed a fire engine and injured one firefighter. Leake & Goodlett Lumber Co., Tupelo, Ms., has closed after 115 years and will put its 3-acre site up for sale.
Ace Peninsula Hardware
relocated to a more visible location in Williamsburg, Va.
City Hardware, Swanton, Vt., is adding its sixth location early this month in downtown Burlington, Vt. Ace Hardware , Dallas, Tx., has been opened by Sunny Merchant and Jivani Amin, owners of an Ace in Seagoville, Tx. True Value Hardware submitted plans for Matt and Tammy Capano to open a 10,000-sq. ft. store in Gloversville, N.Y. Ace Hardware, Wichita, Ks., has purchased a 26,000-sq. ft. storefront, twice the size of its longtime leased home. The move should be complete by March. Daniel Village Ace Hardware is opening in early February
in Augusta, Ga. The 9,100-sq. ft. storefront is owned by Mike Hubert, who for two years has operated an Ace in Grovetown, Ga.
Habitat for Humanity is closing its two ReStore discount LBM outlets in Orlando, Fl., on Jan. 31. It also closed its Superior, Mn., location at the end of 2018. New ReStores recently opened in Zionsville, In., and Rotterdam, N.Y., while older stores moved into new digs in Dalton, Tn., and Germantown, Wi. Building-Products.com
We didn’t come this far to only come this far. History Built. Future Bound.
Over the last 20 years, our technological and operational expertise has made Pacific Woodtech a global leader in private-label EWP. Now, with the addition of our own Pacific Woodtech-branded products, we are accelerating our quest to bring superior products and service to existing customers and a world of new markets. See what we can do for you at pacificwoodtech.com
Ann Arbor’s Venerable Fingerle Shutting Down
After more than 87 years, Fingerle Lumber Co., Ann Arbor, Mi., will close all operations later this year. President John Fingerle and his brother Mark, vice president, are the third generation to operate the company started by their grandfather in 1931, and are ready to retire. They agreed to sell their 6.54 acres of land to the University of Michigan, which will use it for future expansion. The deal is set to close by March 31.
Westervelt to Build 2nd Mill
Westervelt Co., Tuscaloosa, Al., will begin construction the middle of this year on a new lumber mill in Thomasville, Al., with start-up expected in late 2020. The facility will produce approximately 250 million bd. ft. of southern yellow pine lumber annually and create 125 new jobs. It will become the second sawmill for the 134-year-old company, joining an existing facility in Moundville, Al.
Egger Starts Work on New Particleboard Mill
Egger has begun construction of a state-of-the-art particleboard plant in Linwood, N.C. The mill is expected to open in 2020 and employ as many as 400 workers in the next six years.
Worker Crushed at Sawmill
A 47-year-old employee of Victory Lumber Co., Camden, Ar., died after being trapped underneath the bucket of a loader on Dec. 6. Co-workers were able to lift the bucket with another machine to reach mechanic Samuel Buchanan, who was unresponsive. He was rushed by emergency personnel to a county medical center, where he was pronounced dead. Authorities are investigating.
Competitor Buying Elkay
ACProducts Inc., The Colony, Tx., has agreed to acquire 98-year-old cabinetry manufacturer Elkay Wood Products Co., Oak Brook, Il. Elkay brands include Medallion, Design-Craft, Yorktowne, Schuler, Medallion at Menards, MasterCraft, and American Cabinetry Collection. ACPI brands include Echelon, Advanta, Smart, Master Woodcraft, Cabinets 2000, and Serenade. Tim Jahnke, CEO of parent Elkay Manufacturing Co., said, “We found
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ACPI to be the ideal partner for EWP. The combined business will be a stronger company with a broader product offering to serve the market more completely. The sale also enables further investment in the long-term growth of the other Elkay businesses.” The deal is expected to be completed by the end of first quarter 2019.
NELMA Refreshes Website
Northeastern Lumber Manufacturers Association, the rules writing agency and marketing arm for lumber throughout New England and the Great Lakes region, has launched a completely updated website at www.nelma.org. Changes include improving the ease of navigation, housing NELMAtv YouTube content directly on the site, making the most popular sections (product locator, member locator, grade rule book) visible on the home page, and adding an Archives link for a catalog of all 1,914 publications held in the NELMA library. “The updated NELMA.org reinforces our position as a true lumber industry resource,” said Jeff Easterling, president. “From historical pieces like the White Pine Monographs to current industry publications focusing on the modern wood industry, NELMA is a one-stop shop for wood information.”
Spruce Integrates with CRM
ECi Software Solutions, Fort Worth, Tx., is integrating its Spruce ERP software with Microsoft Dynamics 365, a web-based customer relationship management tool. Prior to the integration, CRM data—such as communication history with contractors—was separate from the Spruce system’s transactional information, making it harder for dealers to access up-to-date customer profiles and requiring them to input information more than once. Now, Spruce users will have the ability to access complete customer profiles any time from one central location without having to toggle between two systems. “Leveraging a CRM solution has become an essential component of customer retention and sales growth in the lumber and building materials industry,” said John Maiuri, president, LBM & Hardlines Group, Building & Construction Division at ECi. “The integration with Microsoft Dynamics allows Spruce users to access details of customer interactions within the Spruce system, enabling them to take actions that better serve their customers.”
January 2019
SUPPLIER Briefs Georgia-Pacific is permanently closing its plywood plant in Warm Springs, Ga. Weyerhaeuser Distribution
has added Fiberon decking at its distribution center in Dallas, Tx.
Bower’s Lumber, Rockwood, Pa., plans to rebuild after a late night fire Nov.24 destroyed its building. AHR Trucking & Storage , Fort Worth, Tx., has been acquired by Mountain View Group, Surrey, B.C. American Fence Association
is launching a new deck association, the Deck & Rail Institute, and will revive its DeckTech show, which after a six-year absence will once again be held in conjunction with its annual FenceTech show.
Boise Cascade BMD, Westfield, Ma., and Atlanta, Ga., were honored by Trex as Regional Distributors of the Year in the Northeast and Southeast, respectively. Arauco, Atlanta, Ga., received EPA registration for its InCopper antimicrobial technology, which will be used as a standard surface protection for its Prism TFL panels. Chelsea Building Products, Oakmont, Pa., received approval from the Texas Department of Insurance for its Everlast composite siding. RoyOMartin’s Corrigan OSB, Corrigan, Tx., was honored as 2018 Small Business of the Year for Deep East Texas by the Texas Workforce Commission. Yawkey Lumber, Hazelhurst, Wi., donated 430 acres of forest and wetlands worth $12 million to the Northwoods Land Trust, preserving the last remaining undeveloped shoreline on 590-acre Katherine Lake. Viance, Charlotte, N.C., has redesigned and rebranded its website at treatedwood.com, adding a new logo, improved design, and new tools, such as the Wood Chat blog, Deck Design Visualizer, project plans, educational videos, and dealer locator. Building-Products.com
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Duracolor, the PPG Logo and PPG TrueFinish are registered trademarks and We protect and beautify the world is a trademark of PPG Industries Ohio, Inc. The Voice of Color is a registered trademarks of PPG Architectural Finishes, Inc. ©2018 PPG Industries, Inc. All rights reserved.
THINKING Ahead By Mike Zenko, Boscus Canada
No one thinks of lumber Putting forest products careers on the radar of the next generation Editor Note It’s no secret that the pool of qualified candidates across just about every career in the industry is not deep enough to fulfill all our personnel needs. While some family businesses fill their pipeline with the younger generation, we can’t rely solely on the hope that our children will wish to follow in our footsteps. That means, we should be looking in new and diverse places for our next class of lumber professionals. From traders to truck drivers, we need to be smart in how we approach recruitment and hiring. In 2019, the North American Wholesale Lumber Association will explore varying perspectives on careers in the forest products industry. We’ll share several stories of how people landed in this industry—some by virtue of the history in their families, and others by pure happenstance and luck. If you like what you read, we hope you’ll consider sharing these stories with someone outside the forest products industry. Have a story you wish to share? Let us know. Send an email to ideas@nawla.org.
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t wasn’t much of a surprise that I landed in this industry. My father has been in the lumber business for more than 50 years. I suspect a similar story is true for many of you. Just as people like us essentially only think of lumber during our careers, there are many talented people out there in other industries who simply… don’t. They’re thinking of the stock market. Or cars. Or software. Or communications. Or construction. Some of the most talented people in the pipeline may never think of lumber as a potential career path, but maybe, just maybe, we can put it on their radars. As I progress in my career and meet may people along the way, I appreciate what this industry has given to me, and what it can provide to those willing to join us.
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A Good Living
As I was making my way through university, it became clear that earning a good wage and being able to support
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A Special Series from North American Wholesale Lumber Association
a family was possible with this line of work. I started on the transportation side of things, around 20 years ago. I eventually ended up trading, and now spend my days managing our division. We all know that this industry is very sensitive and responsive to market trends. We also can probably agree that it’s harder to make money now than it was 20 years ago, given market conditions and the changing landscape of the supply chain. Still, I maintain that any career here is a good one. The transportation squeeze we’re all feeling (The American Trucking Association reports a current estimated shortage of about 50,000 driving professionals) has resulted in unprecedented high wages and benefits for truck drivers. Great news, if you’re thinking about a career on the road. But this sort of challenge also opens opportunity for us to be more creative in how we get product to market—a task suited for someone with any sort of supply chain success. Finding those creative minds is crucial. Perhaps less understood is the sustainability of what we do. Remaining in business is dependent upon us being responsible and thoughtful with our renewable resource. Doing so ensures we remain relevant, and ultimately, employed. It’s important we remember to communicate that to those considering a career here.
Cherished Relationships
I’ll never forget one of the first bits of advice my dad gave me when I began my career: “Your name is everything.” I don’t have to tell any of you reading this magazine, nothing could be more true with our line of work. Your reputation determines your success in lumber, period. In the middle of the 20th century, researcher Albert Mehrabian introduced two studies that supported a “7-38-
About NAWLA North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.
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55 Rule” of interpersonal communication. He maintained that just 7% of what we communicate is in the words we say. Tone of voice accounts for 38%, and a whopping 55% is in our body language. Without a doubt, this is true of those the forest products industry. The face-toface time we spend together at Traders Market and other gatherings throughout the year is crucial to our success. A $70,000 deal in a railcar is agreed upon with a handshake. It’s also worth noting that these relationships aren’t exclusively for business purposes. Cherished friendships have blossomed from the connections we make, too. Families have holiday parties and take vacations together. That, my friends, is real.
A Rewarding Experience
When I started trading, no one sat me down to tell me how to do this job. A book was flopped on my desk and someone said, “Pick a state, and start calling.” That was the climate back then, and that’s how we learned. Today, things are quite different. I spend a good deal of my time mentoring those new to the workforce. They can run circles around me with Excel, email, and social media—and those are valuable skills. But what I’m able to provide is guidance to personalize one’s work and build relationships every single day. I find it rewarding to mentor those who did choose lumber, and to help position them for future success. I believe there’s something for just about everyone in lumber. From driving a forklift to sales to accounting to IT to marketing and beyond—using one’s passion in this industry could reap amazing awards, for those willing to try. Finding what makes one happy in any industry is paramount. Forest products may not be top-of-mind at universities or with those embarking on new career paths, so it’s up to us to share our successes and sing the praises of what we do. The survival of our industry may depend upon us doing so. – Mike Zenko is general manager of the We s t e r n D i v i s i o n f o r Boscus Canada Inc., Pointe Claire, Quebec, and a member of the NAWLA Outreach & Marketing Committee.
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MOVERS & Shakers Jim Dudley, ex-Fortress Wood Products, has joined Culpeper Wood Preservers, Culpeper, Va., as executive vice president and general mgr. of the Southern Division. Greg Pray has been named president and CEO of Columbia Forest Products, Greensboro, N.C. Brad Johnson, CEO for the past 11 years, will stay on as an advisor through first quarter 2019. Jonathan Whitehead, ex-Cox Industries, has joined Viance, Charlotte, N.C., as eastern region sales & business development mgr. Jacob Comer is new as electrical & instrumentation controls technician. Todd Logan has rejoined T.H. Rogers Lumber Co., as store mgr. in Durant, Ok. Amber Skymer, ex-Wolf Organization, has joined Derby Building Products as senior product mgr. for the Tando and Novik brands. Jim Day is a new lumber trader with G-Plex Forest Products, Peachtree City, Ga. Jason Lincoln, ex-Gordon Lumber, is new to outside sales at Spahn & Rose Lumber Co., Tipton, Ia. Matthew Barber, ex-Great Southern Wood Preserving, has joined DAP, Baltimore, Md., as Northeast regional sales mgr., based in Northampton, Pa. Doug Jordan, BlueLinx, Atlanta, Ga., has retired after 35 years in the industry. Rick Fischer has retired after 44 years in the business, the last six with BlueLinx in Chaska, Mn. Jason Mears, ex-Hometown Building Center, is new to sales at Foxworth-Galbraith Lumber, Fort Worth, Tx.
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Scott Cady was promoted to general mgr. of Weekes Forest Products’ Comstock Park, Mi., distribution center. Melanie Hess has been named marketing coordinator for Superior Plastic Products, New Holland, Pa. Ezekiel Harnish was promoted to VP of information systems. Justin Kemp, ex-Pella Doors & Windows of Northern California, has joined Paramount Builders Supply, Oakland, Ca., as procurement mgr. Dan Tripp, ex-Gordon Lumber, has been appointed director of installed sales for Goldsboro Builders Supply, Goldsboro, N.C. Tyler Holseberg, ex-JGA/Beacon Roofing Supply, has joined Dealers Choice, Simpsonville, S.C., as inside sales director. Mike Stoll, ex-Willoughby Supply, is a new account mgr. at ABC Supply, Toledo, Oh. Abhi Singh was named VP-sales & marketing for sixunit Mid-Am Building Supply, Moberly, Mo., as part of a chainwide reorganization. Brandon Gillaspie is now strategic account mgr.; Mark Hays, commodity sales mgr.; Johnie Alden, director-operations. New district mgrs. are Kirk Kudrna, eastern Missouri; Larry Stanfield, western Missouri; Jeff Haug, western Kansas; Marvin Calton, eastern Kansas/Kansas City metro; Jason Enke, southern Illinois; and Charlie Stewart, Iowa. Todd Braun, ex-James Hardie, has moved to AERT, a division of Oldcastle APG, Atlanta, Ga., as VP-sales. Mike Ter Molen, Do it Best Corp., Fort Wayne, In., has been promoted to director of LBM operations. Jason Stofleth is now divisional merchandise mgr. for hand tools, plumbing, farm & ranch, housewares, and cleaning & storage. Other new merchandise mgrs. are Nicole Green, outdoor living and trim-a-tree; Michael McCoy, outdoor recreation & safety; and Lauren Wilson, rental, impulse, snacks & store supplies. Scott Collingwood, ex-LP Building Products, has joined Georgia-Pacific, as territory mgr. in Broken Arrow, Ok. Steve Swaenepoel, ex-Zeeland Lumber, is now territory mgr. for Builders Buying Group, Grand Rapids, Mi. Lee Ann Oliverio has joined the inside sales team at Home Builders Supply Co., Wilson, N.C. Jason Marquardt is now sales coordinator for Stephens Millwork & Lumber Co., Nashville, Tn. Leslie H. Kratcoski has joined GMS, Tucker, Ga., as VP-investor relations. Jeff Hiser, ex-Gordon Lumber, is now with Glecker & Sons Building Supply, Jacksonville, Fl. Brent Keefer, president, Hancock Timber Resource Group, Casco, Me., was elected to the Sustainable Forestry Initiative board of directors, along with Kevin Edgson, EACOM Timber Corp.; Lillian Alexander, Black Family Land Trust; and Dan Lambe, Arbor Day Foundation. Haruyuki “Harry” Yoshida has been appointed president and CEO of Kubota Tractor Corp. and Kubota North America, Grapevine, Tx. Art Weiss, chief compliance & ethics officer, TAMKO Building Products, Joplin, Mo., has earned the title of vice president of the joint governing board for the Society of Corporate Compliance & Ethics and the Health Care Compliance Association. Stanley Cupp is in charge of goal setting at Mungus Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus. Building-Products.com
PRODUCT Spotlight By Southern Forest Products Association
Progress continues for southern pine industry t’s a well-known fact: the lumber business is a cyclical enterprise, subject to the ups and downs of homebuilding, financial markets, and other constraints. Fortunately, 2018 marked a full decade since the southern pine lumber industry experienced a prolonged downturn in annual production. Producers have taken steps to announce new mills, upgrade existing mills and increase capacity while remaining faithful stewards of America’s woodbasket. A preliminary tally of annual production for 2018 shows an increase of about 4% over 2017, and that’s nearly 10% above the volume recorded just two years ago. Last year presented some interesting challenges for the softwood lumber industry. With talks of tariffs, skilled labor and transportation shortages—all within the climate of a surging economy—the facts remain: some promising opportunities exist for lumber distributors and dealers. And the southern pine industry remains committed to continue the growth and prosperity of the past decade, providing the resources and services lumber dealers need to increase sales. It’s what the Southern Forest Products Association has been doing for more than 100 years. With 2018 now history, a new set of hurdles looms on the horizon. Rising interest rates are challenging homebuilding; inventories of new homes for sale are climbing beyond a seven-months’ supply. Builders in major markets are facing new regulations that control what they can build, and how they build. Offshore markets are at the mercy of ongoing trade and tariff negotiations. Fortunately, with active homebuilding and remodeling markets continuing, lumber manufacturers throughout the Southeast are maintaining high levels of production to serve both domestic and international markets.
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Bookmark Southern Pine Info
For lumber dealers, the centerpiece of southern pine information is SFPA’s Lumber Library of publications covering the latest product facts. Consider SFPA your “Lumber Information Center,” an online portal at SouthernPine.com that’s available 24 hours a day, seven days a week. With a few simple clicks, here are the facts a builder, remodeler, architect or a handy do-it-yourselfer needs to successfully choose and build with southern pine
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DESIGN VALUES for southern pine are comparable to other softwood species used in residential and commercial applications. The species provides superior fastener-holding ability and load-bearing capacity. (All photos courtesy of Southern Forest Products Association)
materials: span tables for joists and rafters, design values, construction tips, specification guidelines, treated lumber facts and much more. Lumber dealers busy with fielding customers’ questions about southern pine materials can often find an expert answer within this site. Make it your laptop’s favorite bookmark at the sales counter. Don’t have a requested product in your current inventory? For dealers and distributors, SFPA’s online Product Locator is your best tool for finding products to meet the Building-Products.com
needs of your growing (and changing) market. Complete a search from among over 400 products and find a list of manufacturers in your state ready to deliver. Indicate your preferences: grades, sizes, lengths—even packaging preferences—and get connected with a producer and a nearby sales contact. Job done. In a hurry? Or, need a southern pine delivery right away? Start right on the home page and complete a Lumber Purchase Inquiry. Submit your request and collect quotes from interested mills. While there on the home page, lumber buyers can make quick use of the board footage calculator, too, getting an accurate and easy tally of their inventory or an order.
Beneficial Raised Floor Facts
While plenty of new homes are being built—calling for steady demand in building materials—existing homes are being pummeled by natural disasters all over the country. The Houston market remains in disaster recovery mode, rebuilding thousands of homes following Hurricane Harvey in 2017; a full recovery there could take several years. As a member of the Greater Houston Builders Association, SFPA has taken steps to educate the GHBA membership about the benefits of building above grade, especially in flood-prone areas. SFPA learned firsthand of building code changes and new regulations now enforced in the Houston market as a defense against future property losses. SFPA’s communications and advertisements to the GHBA membership have encouraged builders to “Build to a Higher Standard.” As of September 1, 2018, all new residential construction in the Houston metro area must be built to the 500-year Base Flood Elevation, plus 2 feet. That
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A RAISED WOOD floor foundation adds one third more lumber to the typical framing package.
mandate translates into an ideal opportunity for building with a raised wood floor foundation. SFPA has extended its reach with promotional messages to HBA audiences in southeast Texas and southwest Louisiana, as well. More recently, Hurricane Florence devastated large areas of North Carolina and South Carolina. Hurricane Michael plastered the Florida panhandle and southern Georgia. Weeks of record rains in central Texas put more homes underwater. Once debris is cleared, rebuilding efforts have generated a new round of interest in above-grade construction techniques. Today’s building professionals are required to build
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smarter. And SFPA delivers the facts they need to be successful. Last year, SFPA remodeled its flagship website, RaisedFloorLiving.com, presenting a comprehensive, educational portal for building raised—providing clients with a home that features enhanced curb appeal and energy efficiency, plus many other benefits. This new site is complimented by the new edition of SFPA’s 16-page design and construction guide, “Raised Wood Floor Foundations.” Lumber dealers are realizing one significant advantage of promoting a raised wood floor foundation system: it’s a construction practice that adds a third more lumber to the typical framing package.
New Editions: SP Guides
A pair of updated titles full of southern pine facts has been recently added to SFPA’s Lumber Library. The newest addition is the updated 2019 Edition of its “Pressure-Treated Southern Pine” booklet. This 24-page publication details the latest facts regarding specification, selection and application of treated southern pine. This new edition guides the way for both lumber dealers and building pro-
fessionals as new waterborne preservatives continue to enter the market. The full-page Table 2 should be every lumber dealer’s favorite reference for providing guidance to customers when it comes to the right preservative for the right application. Choices are clearly spelled out for above ground and ground contact conditions as well as interior and exterior uses. This new edition joins SFPA’s other titles for building outdoors with pressure-treated southern pine materials. The “Marine Construction Guide” covers every step of building on the waterfront, in both fresh water and salt water environments. For proper deck construction, start with ideas found in the pages of “Southern Pine Decks & Porches,” a booklet of designs and construction steps. SFPA’s premiere technical publication, the Southern Pine Use Guide, has been updated recently to include the latest lumber specification examples for structural, treated and interior applications. The 2018 edition of the 24-page booklet provides a comprehensive collection of information needed to specify and use southern pine lumber. Information includes listings of southern pine product and grade
descriptions, based on SPIB grading rules. Also listed are southern pine reference design values, plus complete details on the outstanding strength and treatability that make the species an ideal choice in today’s marketplace. “Building professionals depend on the information in this comprehensive publication to properly design with southern pine products,” says Eric Gee, SFPA’s deputy director. SFPA also makes this information available in a metric edition. This edition supports offshore seminar presentations and trade servicing efforts. Both editions are now available as a PDF download from the Publications page of www.SouthernPine.com; a Spanish-language metric edition of the Use Guide can be downloaded from the Publications page of www. SouthernPineGlobal.com.
Indoor Performance
Southern pine products are not only well-suited for a building’s structural framework, but also ideal for interior flooring, paneling, ceilings and exterior siding. Southern pine specialty patterns have the bases covered. Dealers can consider decorating their sales counters or an endcap with displays of southern pine patterns in a variety of finishes and likely generate conversations with customers over the many possibilities. Wood surfaces indoors bring natural beauty and warmth to interior
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spaces. Southern pine’s distinctive grain pattern makes it a decorator’s favorite for accent paneling in a bedroom, bath or home office, or for an impressive vaulted ceiling in the great room. For the finishing touch, southern pine readily accepts solid or semi-transparent stains. Many builders prefer the application of a clear polyurethane finish to showcase the wood’s inherent beauty. For painted surfaces, a primer plus two coats of a latex paint are recommended. Add it all up and featuring southern pine patterns may enhance a dealer’s operation and generate some value-added sales. SFPA’s booklet Southern Pine Flooring explains product selection, installation, finishing and maintenance details. Dealers can find product details and profiles in Southern Pine Patterns. A free PDF download is just a few clicks away on the Publications page of SouthernPine.com.
Socially Speaking
Social media is playing an ever-growing role in the progress of the southern pine industry. SFPA uses its platforms
SOUTHERN PINE specialty patterns add the designer’s touch to most any interior space.
Sparkman, Arkansas
Phone: (870) 678-2277 • Fax: (870) 678-2522
www.raywhitelumber.com The White Family – Serving the Lumber Industry for Five Generations
High Quality Arkansas Southern Yellow Pine Boards, Pattern Stock and 5/4 Square Edge, Flooring, Beaded Ceiling, 105, 116, 117, 119, 122, 131, 139, 5/4x12 Nosing. Building-Products.com
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on Twitter and YouTube to deliver the latest facts and benefits of building with southern pine products, featuring educational videos, case studies, and DIY posts. Lumber dealers and distributors are encouraged to follow SFPA on Twitter: @Southern_Pine. And the association’s YouTube channel, southernpinelumber, delivers more than two dozen videos showcasing southern pine success stories. Dealers wanting to be notified of new or updated publications can sign up to receive SFPA’s newsletter—it’s quick and easy; visit SFPA.org/newsletter.
A Second Century of Progress
Entering its second century, SFPA stands as the leading representative of southern pine producers large and small. Its members understand what it takes to make a sale, so they support efforts to educate and create a preference for durable, versatile southern pine materials among designers, specifiers and building professionals. Today, SFPA’s member mills produce nearly half of our nation’s southern pine lumber. The association’s founding
HOOD LUMBER
PRESSURE TREATED southern pine is the deck builder’s choice for value and durability.
motto of “Service” still applies today. SFPA members are ready to deliver the quality products your customers want. SFPA provides the sales tools dealers and distributors need to sell more lumber. This year look for southern pine displays at the International Builders’ Show, JLC Live, DeckExpo, the national AIA convention, and Greenbuild. Complete information about SFPA, its activities. and its many resources are available at the association’s gateway page, SFPA.org.
Silver Creek, MS
Metcalf, GA Waynesboro, MS Bogalusa, LA
Hood Industries operates four quality Southern Pine sawmills in Mississippi, Louisiana & Georgia, specializing in superior SYP Lumber, providing a full product mix of 2x4 thru 2x12, small timbers, & lengths up to 24’. “We go to great lengths to ensure your satisfaction” Phone 601-264-2559 Fax 601-296-4740
www.hoodindustries.com
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SELLING with Kahle By Dave Kahle
Break out of comfort zones omfort zones, the bane of the B2B salesperson. I believe the loss of productivity and sales effectiveness caused by the limitations of comfort zones is so widespread that it could be the number one problem for salespeople. A comfort zone is some aspect of a salesperson’s job with which they are more comfortable than others. It could be that they are only comfortable with some market segments, and uncomfortable with others. For example, they may be comfortable calling on businesses, but uncomfortable calling on schools. Or they may be comfortable calling on production managers, but uncomfortable calling on CFOs. Or they may be comfortable selling one product to the point where they ignore opportunities for others. And, finally, salespeople form comfort zones associated with the processes and tools they use. You may be very comfortable using a paper calendar, and not at all comfortable using a laptop and the company’s new CRM system. There is nothing wrong with comfort zones, per se. They are just the job-related expression of human nature. Naturally we tend to be more comfortable with certain people, places, and things than others. That comfort comes from a combination of our unique skills intertwined with our experiences. The combination of those two things leads us to a position: This person, or market, or product, or process feels more comfortable to us than another one. The problem is the converse of comfort zones—“uncomfort” zones. The problem isn’t that you are comfortable with some element of your job; it is that you are uncomfortable with others. There’s nothing wrong with being comfortable calling on schools, for example. The problem comes when you are uncomfortable calling on businesses. There’s nothing wrong with being comfortable calling on production managers. The problem comes when you are uncomfortable calling on CFOs. It’s not so much the lack of comfort that is the problem. It is the fact that the uncomfortable feeling leads to a conscious avoidance of the uncomfortable and that, then, leads to a lack of action. And the lack of action is the problem. So, what to do? It has been my experience that comfort is built on the base of confidence. And confidence comes from only two sources: experience and practice. So, ultimately, you must, to overcome your discomfort, practice or gain experience in the uncomfortable thing or situation. Here are specific actions you can take to help your sales reps overcome their lack of comfort with certain markets. 1. Create experience. Give a specific direction. Some salespeople will respond positively to something like, “I want you to call on 10 new businesses over the next two weeks. I don’t care if you sell anything. I just want you to learn. Fill out a little call report that indicates what you did, and more importantly what you learned about that market
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and yourself as a result of each call. I’ll talk with you about them after you’ve completed them.” In this case, you are forcing the salesperson into the uncomfortable area and stimulating thoughtful learning. I guarantee you he/she will be more comfortable and confident with the new market after those 10 calls than before. 2. Help them tip toe into the experience. Some salespeople just won’t be ready to jump right into the water. You may have to lead them a bit. In that case, you can either have them come with you as you make calls into the new market, or, assign them to ride with someone who is comfortable in that market, and watch as he/she makes calls. Again, after each call, I’d ask for a call report detailing the two items listed above. After a few calls, you can then implement strategy number one, above. If you don’t see yourself pulling off these strategies, fall back on practice. 3. Bring them into the office for a training session on the product, market, customer or process that causes discomfort. Help them learn about it by educating them in the details of that subject. For example, if the problem is discomfort with a market, help them learn as much as possible about that market: how big, how many people, who makes the decisions, what their problems are, what their objectives typically are, what they are likely to say, etc. Build their knowledge, understanding that lack of knowledge contributes to lack of confidence. But don’t stop there. Help them practice by role-playing various scenarios. Comment on the role-plays and help them learn from them. If you do this effectively, at some point they will begin to gain confidence in their ability to handle that market, or person, or product, etc. That confidence will spill over into action. And that action will lead to them developing comfort in what was previously a place of the opposite. – Dave Kahle is a high-content consultant, instructor and author of 12 books, including How to Sell Anything to Anyone Anytime. Reach him at dave@davekahle.com. January 2019 n
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WESTERN Woods By Hakan Ekstrom, Wood Resources International
Wood fiber prices rise, particularly in the West ood fiber costs for pulpmills in North America remained generally unchanged from the second quarter 2018 to the third quarter 2018 (latest available figures) but were higher than in the third quarter 2017, according to the latest issue of the North American Wood Fiber Review. The biggest increases year-over-year came in British Columbia and the western U.S. where prices for wood chips (the major fiber source for the two regions’ pulp industry) increased by 25% and 23%, respectively. Over the past year, fiber prices have risen fastest in the West mainly because of low fiber inventories and limited access to addition log supply early in the year. This was followed by forest fires in late summer and early fall which reduced the log flow, tightened the fiber supply/demand balance, and increased transportation costs. Towards the end of the third quarter 2018, there were sufficient wood chips and pulp logs in inventories in western U.S. and Canada and prices started to level off. In the fourth quarter 2018, the price changes were mixed, with increases in B.C. and declines, with exceptions in the U.S. West. Wood fiber prices in the U.S. South have been quite stable for a long time because of plenty of supply. Historically, prices in this region have been much less volatile than in the West.
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There was an uptick in the price of Douglas-fir and hardwood pulplogs in the third quarter 2018 in coastal Washington and Oregon, with the price for Douglas fir reaching a high last seen in the first quarter of 2012. The current price equals the price of hemlock/fir, which was unchanged from the second quarter 2018.
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There was a noticeable decrease in residual chip prices due to multiple factors, including plentiful residual supplies at the region’s sawmills, log buyers building sawlog and pulplog inventories because the forests remained opened in spite of the wildfire threat, and more logs becoming available for domestic mills due to U.S.-China trade tensions. The average softwood chip price in the most recent quarter was down 25% from the same quarter in 2017.
U.S. South
Prices for hardwood chips and pulplogs in the South Central sub-region were up about 5% quarter-overquarter, while the price increases were more modest in the Southeastern region. Low inventories and reduced harvests of hardwood stands have contributed to record high hardwood chip prices and hardwood pulplog prices being close to their highest levels in two years. Softwood chip prices have remained practically unchanged for more than a year throughout the South due to increasing supply of residuals from the region’s sawmills. Prices for sawmill chips in both South Central and Southeast are currently among the lowest in North America.
U.S. Lake States
Dry summer weather resulted in log contractors maintaining full production schedules and a robust supply of fiber for the region’s pulpmills. In the third quarter 2018, softwood and hardwood roundwood prices were unchanged from the previous quarter. Although there remains an oversupply of softwood logs, prices remained stable throughout most of 2017 and 2018, while prices for hardwood logs have inched downward. Building-Products.com
Sawmill chips were plentiful, but suppliers reported little to no difficulty in moving their residuals. However, this plentiful supply did result in the price of softwood chips dipping slightly from their second quarter 2018 levels.
U.S. Northeast
There was no change in softwood pulplog prices from the second to the third quarter, marking the third consecutive quarter with steady pricing. Hardwood roundwood prices edged downward slightly due to the cessation of a temporary price increase which was in place for the first half of the year. Although hardwood-consuming pulpmills in Maine reported low fiber inventories during the summer, by late August, the inventory levels had recovered.
to supplement their fiber inventories. Alberta saw a slight increase in residual chip prices in the most recent quarter, a continuation of an upward trend that started in the second quarter of 2017.
Canada East
In Eastern Canada, growing lumber production has created ample supplies of residual chips while demand for the fiber has stagnated. The imbalance, building over the past 18 months, resulted in significant price declines when 2018 annual price negotiations were concluded earlier this year.
Eastern Ontario and Quebec now have the lowest softwood chip prices in North America. In contrast to the plunge in softwood residual chip pricing, hardwood roundwood pricing in eastern Ontario/Quebec has remained flat for all of 2018. Hardwood and softwood pulplog prices in the Maritime provinces were unchanged in the third quarter 2018 at levels similar to price levels seen earlier in 2018. - Hakan Ekstrom is president of Wood Resources International LLC, Bothell, Wa. (www.woodprices.com).
Canada West
The price for chips rose across all regions of British Columbia in the third quarter 2018. In the Northern Interior, residual chip pricing increased significantly based on increases of the New Brunswick/Saskatchewan pulp prices to which they are linked. Prices in Canadian dollar terms have gone up for four consecutive quarters to reach their highest levels since the first quarter 1996. Sourcing fiber to meet demand remains a concern for most of British Columbia, particularly for the Coastal region. High prices continued due to the imbalance between supply and demand. Lack of wood supply on the coast resulted in fiber buyers reaching into the Interior of the province or sourcing fiber from the U.S. Northwest
QUALITY WOOD PRODUCTS, GROWN RESPONSIBLY
Western Rules eBook
The Western Wood Products Association has launched the Western Lumber Grading Rules eBook for Amazon Kindle and Apple iBooks. It can be downloaded onto a smartphone using the Kindle Reader Phone App or a computer using the Kindle Reader Desktop App. An eBook gives the reader control on how the book’s content is displayed, including font style and size. Pages can be bookmarked and content can be highlighted for easy referencing. Words, phrases and terms are searchable. Notes can be added by the reader.
Building-Products.com
PRODUCTS
Douglas Fir-Larch, Hem Fir, SPF – 2x4 and 2x6 framing lumber Spruce, Pine, Fir (SPF) 2x4 and 2x6 studs and 6- to 9-ft. trims Southern Yellow Pine – 2x4 and 2x12 framing lumber Machine Stress Rated (MSR) Southern Yellow Pine - 4x4 and 4x6 timbers Douglas Fir Plywood – AC, BBOES, CCPTS, CCX, Industrial Panels Medium Density Fiberboard (MDF)
ST. MARIES
BEMIDJI GWINN
OLA WALDO
WARREN EL DORADO
LANDHOLDINGS | Alabama | Arkansas | Idaho | Louisiana | Minnesota | Mississippi CONTACT US WITH SUPPLIER INQUIRES!
PotlatchDeltic | 601 West First Avenue Suite 1600 Spokane, WA 99201 | Tel (509) 328-0930 | Fax (509) 327-9409 | www.potlatchdeltic.com
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MARGIN Builders By Ethan Smith, Equipment Trader
Strategies to power up your rental department of machinery for diverse jobs. If customers understand that they stand to gain such impactful benefits, the rental side of your dealership will have consumers lined up around the block—communicate these advantages every chance you get! And remember that another great way to connect with interested renters is to make sure that you not only provide listings on your own website, but also place your inventory on leading third-party equipment rental markets like EquipmentTrader.com.
FISHERS Do it Center, Fishers, In., offers more than 250 items at its Rental Center, everything from party rentals to excavating equipment.
2. Understand the Consumer’s Job. What project do they want to complete? Which piece of equipment that you offer for-rent could complete the task? Understanding the consumer’s job and being able to provide suggestions makes you a reliable source for equipment rentals, boosting your chances of earning repeat business and referrals.
of interested buyers. Developing a high-quality pool of potential renters is made easier when you use your advertising materials to clearly communicate the benefits of rentals for consumers. While the industry is growing, not every potential customer may understand that renting for consumers (1) is affordable, (2) is simple, (3) provides flexibility during changing circumstances or emergencies, (4) offers consistently up-to-date machinery, (5) allows them to test drive equipment before choosing to buy, and (6) provides opportunities to expand the reach of their own business with access to a wide selection
3 . Know the Time. Typically, equipment should be in use 60-70% of the time to be worth the purchase price. How often does the consumer plan to use a piece of equipment? If it’s more than 65%, you may want to direct them toward making a purchase. If it’s less, renting is likely the right choice. Consumers will appreciate your expert guidance and your reputation for being a dealer with the customer’s best interest at heart will grow. Plus, knowing the exact amount of time they need a machine can help determine the length of a rental, helping you draw up the appropriate contract.
ealers that that offer equipment and tool rentals should develop and implement effective and appropriate strategies for connecting with renters and providing a high-quality rental experience. An ethical and efficient rental operation will keep customers coming back, increase your chances for referrals, and maximize the earning potential of the rental side of your business. Here are nine best practices for rental departments:
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4 . Study the Economy. Renting during economic uncertainty can save consumers from expensive purchases of machines that could end up unused and collecting rust when the jobs dry up. By keeping tabs on economic performance indicators, you’ll know the best recommendations to make to consumers and the ideal times to successfully advertise for your equipment rentals. 5. Measure the Competition. What other equipment rental businesses are available to customers in your local market? What specific equipment rental inventory are those other dealerships offering? Do they advertising only on their own website, or are they also on third-party equipment rental markets? Taking time to comprehensively track your competition and their available products lets you know how much of the market share you can expect to corner, what it will take to make your rental packages competitive, and how to best market your own dealership and the unique inventory and services you provide. 6. Provide transparent quality. As a dealer, your reputation is your most important commodity, which means trust and authenticity are paramount to your business model. There are a number of ways that you can use transparency to build your brand as a reputable dealership: (a) Allows consumers to inspect the equipment. Allow this examination to occur at every level, including mechanical and components. You provide high-quality machinery, so showing it off to the consumer can only boost your credibility as a leading provider. (b) Offer to provide its history. Involved contractors and other renters will often want to understand how the equipment has been used and cared for in the past. It’s likely you track equipment rental telematics, so offer the equipment’s use record, maintenance schedule, and repair records, which prove you provide machinery that is well cared-for. Finally, make sure the machine has been properly certified for use. Uncertified equipment is not only a turn-off for consumers, it may also be unsafe and even illegal! (c) Be transparent about yourself. Knowing a rental dealer has a good reputation can give customers greater confidence in renting equipment from the dealership, and there are many ways consumers may research dealers. Allowing, and even encouraging, potential renters to ask around, look you up online, conduct a business background check, and confirm your ownership of the equipment shows that you have nothing to hide and that you’re a reliable business partner. (d) Be clear about the contract. What is the full cost to rent? Does that include insurance for damages or theft, transportation fees, or fuel surcharges? How long do renters get the machine for? How do renters acquire and return the equipment? Are there late fees? Who is responsible for maintenance and repairs? What are the billing policies? Who is permitted to use the rented equipment? Being up-front and clear about contractual questions like these helps you fully communicate the costs and risks consumers incur when renting the machine, and hopefully prevents any misunderstandings or legal issues. 7. Look at Long-Term. Decide if you will offer any discounts for long-term rentals. After all, a long-term rental guarantees profitable business for your dealership for a prolonged amount of time. Long-term rentals can be good for renters too, since they ensure the equipment is available when needed while still avoiding the full cost of purchase Building-Products.com
BOTELLO Lumber, Mashpee, Ma., has one of the region’s largest rental departments, offering a large selection of Bobcats and other heavy equipment, as well as tools, grills and even a lobster pot.
and ownership. Advertising these benefits, along with a discount, could be a popular rental package and strong revenue-source for your dealership.
8. Offer Training. As a dealer who would likely prefer to have rented-out equipment returned back to your dealership in the same condition it left, be sure renters know how to properly use a piece of machinery. Misusing equipment can be very unsafe and non-contractual use can make renters liable for damages, so they should appreciate any instruction you can provide about proper machine use. And if you really want to provide quality service for consumers, consider putting together safety training courses for the equipment you sell and rent. This is the type of service that can really make you an expert and leader in your local market. 9. Provide Contact Information. If there is a problem with a rental machine, who should a renter contact? What are your hours of operation, and what is your response time? Is there a customer service or help-line to call? Do you want renters to call you directly? Breakdowns and emergency situations can be stressful, so clearly-provided contact information for you and/or your dealership can help renters keep their work on track and can preserve their loyalty to your dealership despite any issues. Just knowing you’re looking out for them can go a long way with equipment renters and helps insulate your reputation from problems that are inevitable with any machine or business. Of course, there are likely many more recommendations that could be made for dealers wishing to start or grow a rental business. However, the overarching theme of these best practices should be clear: that the best dealers, the ones who craft a sterling reputation for quality service, are those who adopt a hands-on approach. Getting to know and serve renters on a personal basis, and anticipating and addressing issues before they ever arise, may admittedly take up quite a bit of time. Yet your growing reputation as a trusted and respected leader in the equipment rental market—and the resulting boost in business and profits from that reputation—make all the effort worth it. – Ethan Smith is content curator for Equipment Trader, Norfolk, Va. (www.equipmenttrader.com/).
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NEW Products
Advanced Composite Decking Combo Squares Empire Level is introducing the next generation of its industry-leading True Blue combination squares. The 6”, 12”, and 16” squares are redesigned with an improved Blade-Lock for faster adjustments and a more secure hold, a Dual-Pitch vial for checking 1 and 2-degree slope, and rational head dimensions for quick checks of common dimensions. The tools also feature an etched stainless-steel blade and onboard storage for a hardened scriber. n EMPIRE LEVEL.COM (800) 558-0722
MoistureShield Vision composite decking features an advanced manufacturing method that creates a modern, variegated appearance with a diverse pallette of trend-forward color options. The distinctive contemporary designs strongly resemble the beauty of interior hardwoods to provide a seamless transition to the outdoor deck. The line comes in five natural colors: Smokey Gray, Spanish Leather, Sandstone, Cathedral Stone, and Mochaccino, and deck boards are available in 12-, 16- and 20-ft. lengths, with fascia boards in 12-ft. lengths. n MOISTURESHIELD.COM (866) 729-2378
Expanded Line of Hammers
Convenient Charging The new radiant Wireless Charger by Legrand instantly provides a convenient, clutter-free space to charge your phone, tablet, laptop, or any other device needed to get the job done. It replaces any standard outlet in the facility using the existing electrical wiring, making installation simple. The connection offers a consistent look across all switches, dimmers, outlets, and home automation controls, and includes tamper resistant duplex receptacle with a USB port.
Dewalt’s XP Extended Performance Hammers offer more durability and features including the “More Swing, Less Sting” vibration dampening technology, easy-to-grip handles, and side nail pullers. The innovative new grip vibration dampening technology allows each hammer to reduce sting by 35% while also improving grip durability by 25%. Lowering vibration and increasing grip durability helps reduce arm fatigue and increases the tool’s ability to stand up to rigorous use.
n LEGRAND.US (877) 295-3472
n DEWALT.COM (800) 433-9258
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Starter-Price Decking The newly re-engineered and expanded line of Trex Enhance composite decking is targeted for budget-minded homeowners. Backed by 25-year limited residential and fade & stain warranties, the reimagined line-up has a scalloped profile that is lower cost and lighter weight for easier handling and installation. Enhance Basics comes in three shades (Clam Shell, Beach Dune, Saddle) in realistic grain patterns. Enhance Naturals has five multi-tonal hues (Foggy Wharf, Rocky Harbor, Toasted Sand, Coastal Bluff, Sunset Cove) that resemble the streaked looks of natural wood.
Weathered Brown Railing Deckorators ALX Classic aluminum railing is available in a new color, Weathered Brown, designed to give deck builders and homeowners more beautiful, modern choices to personalize an outdoor living space. Weathered Brown is currently a trending color that’s meant to add a warm, natural finish to a deck. n DECKORATORS.COM (800) 556-8449
n TREX.COM (800) 289-8739
DI
ST NO RI W BU TI NG
Discover YOUR NEXT FAVORITE SIDING PRODUCT Introducing
Trespa Pura NFC® Cladding (Natural Fiber Core), a revolutionary development in home exterior cladding: • Highly weather resistant • Requires minimal maintenance • Installs quickly and easily • 10-year guarantee • Range of natural Wood Decors and Uni Colours
Love home, live Trespa 877.533.7695 • www.jordanredwood.com Building-Products.com
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Extra-Long Reel Tapes Milwaukee has expanded its line-up of long tapes with new Fiberglass Open Reel Long Tapes, measured at 100 ft., 200 ft., and 300 ft. The new tapes include the same Grimeguard Blade Wiper that’s featured in the company’s Steel Long Tape Measurers; the wiper cleans and keeps debris out of the housing for easy retraction. To survive the demands of the jobsite, the tapes also feature a 3:1 planetary metal gear system that distributes force evenly and puts less stress on internal components, preventing the gears from stripping.
Underlayment Patch USG’s Durock Brand TufSkim Floor Patch provides a tenacious bond to compromised gypsum floors. The fast-setting, fast-drying, chemically hardening compound is designed for bonding to gypsum-based underlayment, but can also be used over interior wood and concrete subfloors. n USG.COM (800) 950-3839
High-Energy Openings Deceuninck’s new 326 residential and light commercial window system is capable of thermal performance of 0.27 U-value and a DP35 rating. It offers three frame options that accommodate stucco construction and a standard sash. Frame options include an integral stucco key for new construction applications, a 1-3/8” nail fin setback, and a stucco flange for replacement and remodeling projects. n DECEUNINCKNA.COM (877) 563-4251
n MILWAUKEETOOL.COM (800) 729-3878
Tether for Coil Tools Cintec has developed a new type of dissipative wall anchor designed to protect heritage buildings in earthquake-prone areas. The wall anchor system consists of a stainless steel anchor body encapsulated in a fabric sock. Diamond holes are drilled into the building and each anchor is placed in a hole.
Hammerhead Industries has introduced the ANSI-compliant 3/4” Super Coil tool tether for heavy tools and instruments. The flexible, low profile system provides up to an 8-ft. diameter working area for heavier tools like power drills, nail guns, and power drivers. The new fixed-loop 3/4” tether is rated for use as an anchored attachment to a fixed structure for tools up to 15 lbs.
n CINTEC.COM (800) 363-6066
n GEARKEEPER.COM (888) 588-9981
Updated Wall Anchors
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Bolt Busters Milwaukee Tool is expanding its Hand Tool line with its new Bolt Cutters, available in 14” and 24”. The cutters’ forged steel blades and bolts won’t loosen, translating to more cuts and longer life. Also included in the line-up are two adaptable bolt cutters with Powermove Extendable Arms, allowing the user to extend the arms for more power and versatility. n MILWAUKEETOOL.COM (800) 729-3878 Building-Products.com
Natural Color That Pops Cavern Clay by Sherwin-Williams is a warm terracotta paint color with ancient, elemental roots. The hue is designed to be a nod to midcentury modern style, but with the soul of the American Southwest, which together create the desert modern aesthetic. The color is a part of the Wanderer color journal that was announced last year and is an ideal choice for both residential and commercial settings, offering a free-spirited bohemian flair. n SWCOLORMIX.COM (812) 423-2385
Rainscreen Protection The DuPont Tyvek DrainVent Rainscreen provides advanced protection against moisture damage in exterior wall systems. The product is the business’ first roll good offering that creates a 6mm (0.25”) space for water drainage and air movement for drying behind cladding and can be installed behind stucco, stone veneer, brick, wood, fiber cement and metal panel systems. The product is easy to cut and install, lays flat, and rolls tight against corners, helping protect against poor installation and detailing errors n DOW-DUPONT.COM (800) 422-8193
Clear Out Dust and Debris
Create Your Own Balcony
The Bosch Wet/Dry Dust Extractor has a maximum of 300 CFM (cubic ft. of air per minute) capacity that filters fine dust, coarse dirt and liquids. It boasts a 17-gallon capacity and auto filter cleaning with HEPA filter to provide a complete package in helping users move toward OSHA silica dust regulation compliance. Its auto filter-clean system activates every 15 seconds and the HEPA filter captures 99.97% of particles at 0.3 microns and larger.
Fakro’s new line of balcony windows are designed as large roof windows that open into a balcony. The upper sash opens upwards while the lower sash opens forward to create a balcony bay. The window stays open anywhere along the 0to-45-degree opening range and is operated by the handle located at the bottom of the upper sash, which has a two-point locking mechanism. The automatic air inlet V40P adjusts the air pressure in the room to complement the air pressure outdoors for maximum performance and stability.
n BOSCH.COM (877) 267-2499
n FAKROUSA.COM (630) 543-1010
Building-Products.com
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Timber Products parties
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TO CLOSE OUT its 100th year, Timber Products Co., Springfield, Or., held a joyous holiday party Dec. 6 at the Costa Mesa Country Club, Costa Mesa, Ca. Festivities were introduced by [1] CEO Steve Killgore and [2] Randy Lambert, territory sales manager for Southern California. [3] Steve Killgore, Joe Gonyea II, Don Weber, Eric Domanic. [4] Sara Anderson, Cindy Bartunek, Kelley Rhea. [5] Walt Maas, Marty Lovik.
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13 [6] Lori & Tony Burke. [7] Jerry Best, Dan Best, Darrell Sauvageau. [8] Scott LeGros, Jake Brosterhous, Eric Cullen. [9] Richard Perez, Edgar Lopez. [10] Parker Butterfield, Farhad Abdollahi. [11] David Smith, Victor Garcia. [12] Joe Gonyea II, Steve Killgore, Josh Gibeau, Sam Rickley. [13] Filo Silva. (More photos on next page) Building-Products.com
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TIMBER PRODUCTS partiers (continued from previous page): [14] John Erickson, Matt Barrass. [15] Richard Perez, Jouanni Valenzuela, Lance Church, Shawn Carlisle, Scott Church, Jennifer Barnes, Edgar Lopez. [16] Pat Cowan, Jack Griede. [17] Phil Finston. [18] David Gonyea, Steve Killgore, Mike Parrella, Josh Gibeau. [19] John Kemper, Scott Church. [20] Gary Harker. [21] Janeen Jarrar, Eric Domanic, Building-Products.com
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31 Marta Evans. [22] David Smith, Lou Flynn. [23] Vince Galloway, Joe Bolton, Steve Daugherty. [24] Kris & Nicole Wanel. [25] Steve Killgore, Sara Anderson, Mark Brothers. [26] Shirley & Jim Cadwell. [27] Mark Washington, Loise Shin. [28] Matt Barnes, Brent Burkhart, Zach Heberer. [29] Bob Payne, Liz & Dan Seeman. [30] Ryan Linehan, Steven Johnson, Steve Johnson. [31] David Hall, Randy Lambert. January 2019 n
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ASSOCIATION Update American Wood Council has elected Roseburg Forest Products chairman Allyn Ford as AWC board chairman for a second one-year term. Neil Sherman, executive VP of siding at LP Corp., was elected 1st vice-chairman, and T. Furman Brodie, VP, Charles Ingram Lumber Co., is 2nd vice-chairman. Ricky Stanley, CEO and president, TR Miller Mill, is new to the AWC board. Directors Eric Cremers, president and COO, PotlatchDeltic, and Fred Stimpson, president, Canfor Southern Pine, were elected to second two-year terms. Registration is now open for the Northeastern Retail Lumber Association’s annual LBM Expo Feb. 6-8 at Hynes Convention Center, Boston, Ma. The show will introduce hands-on interactive demo zones for the first time this year. Attendees can also purchase tickets to the 125th year celebration party. NRLA is also hosting several workshops this month at its headquarters in Rensselaer, N.Y, including an intro to building materials course Jan. 14, and a series of estimating courses Jan. 15-18. On the calendar for NRLA affiliates are a Retail Lumber Dealers Association of Maine board meeting Jan. 9 in Augusta, Me.; New Hampshire Retail Lumber Dealers Association board meeting, Jan. 23, Concord, N.H.; and Massachusetts Retail Lumber Dealers Association intro to building materials course, Jan. 28, and estimating courses, Jan. 28-Feb.1, all at Boston Cedar, Mansfield, Ma. Building Material Suppliers Association is reminding members to save the date for its annual Building Products Show Feb. 6-7 in Hickory, N.C. Illinois Lumber & Material Dealers Association will present one outstanding lumberman with its Lumberman of the Year award at the annual expo Feb. 7 at Par-A-Dice Hotel, East Peoria, Il. Attendees will have access to the show floor and can attend the annual auction and cocktail party. Lumbermen’s Association of Texas & Louisiana is hosting a market networking/professional development lunch Jan. 15 in Dallas. Mid-American Lumbermens Association has two winter meetings approaching this month. The first will be hosted by the Missouri Lumber Dealers Activity Committee on Jan. 11 at Boone County Lumber Co., Columbia, Mi. Keynote speeches will highlight employee practices and trends, and a Missouri Legislative Update. The second meeting will be held Jan. 24-15 in Hays, Ks. Northwestern Lumber Association is kicking off the year with several social events and educational workshops. On Jan. 8 the association will host a contractor sales course aimed to help participants develop ready-to-use ideas to increase sales and profits. The meeting will be held at Simpson Strong-Tie in Eagan, Mn. The next day Northwestern will host a yard & delivery workshop on Jan. 9 at Holiday Inn Express & Suites, Shakopee, Mn. The workshop is designed to help yard personnel, managers and dispatchers understand the need for
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high operational standards. The following week is Estimating 1-2-3 at Best Western East Towne Suites, Madison, Wi., on Jan. 15-17. Attendees will discover short-cut formulas that will speed up the material take-off process. The association has chosen “Racing to Connect” as the theme for its upcoming expo Jan. 28-29 at River’s Edge Convention Center, St. Cloud, Mn. Nearly 600 industry professionals will participate in educational sessions, networking events and a lively trade show. Up next are a sales roundtable presented by Rick Davis Jan. 29-30 at Best Western Kelly Inn, St. Cloud, Mn., and the Wisconsin Lumber Dealers Leadership Conference with Future Lumber Leaders roundtable Feb. 6 at Glacier Canyon Conference Center, Wisconsin Dells, Wi. Missouri Forest Products Association’s upcoming winter meeting & legislative breakfast is just around the corner on Jan. 15-16 at Capitol Plaza & Convention Center, Jefferson City, Mo. The meeting will cover governmental and public affairs, and will offer guests a welcome reception and membership dinner. Kentucky Building Materials Association has scheduled its first board meeting of the year for Jan. 15 at the KBMA office in Prospect, Ky. “Disrupt Yourself” is the theme for the National Association of Wholesale Distributors’ annual executive summit Jan. 29-31 at the Fairmont Washington, D.C. Through workshops and keynote speakers, attendees will be exposed to the latest in innovative thinking and actionable ideas to help them on their path to business disruption and transformation. Indiana Hardwood Lumbermen’s Association’s annual convention and expo will take place Feb. 4-6 at Indianapolis Downtown Marriott, Indianapolis, In. Mississippi Lumber Manufacturers Association is inviting members to register for its annual meeting Feb. 7-8 at The Westin, Downtown Jackson, Jackson, Ms. The meeting will include a legislative reception, board meetings, and a luncheon with guest speaker Scott Waller, Mississippi Economic Council. Lake States Lumber Association is gearing up for its annual winter meeting Jan 16-18 at Paper Valley Hotel, Appleton, Wi. National Hardwood Lumber Association’s kiln drying workshop will take place Jan. 7-9 at College of Environmental Science and Forestry. The workshop will provide practical knowledge about how wood is effectively kiln dried and the scientific background to related wood properties and drying processes. Window & Door Manufacturers Association’s Northeast winter conference is rapidly approaching on Jan. 28 at Radisson Hotel Baltimore Downtown-Inner Harbor, Baltimore, Md. The program is comprised of an opening networking reception and a day of informative sessions focused on the key issues impacting the industry. Building-Products.com
CLASSIFIED Marketplace
HELP WANTED
Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type. Send ad to Fax 714-486-2745 or david@building-products.com.
PRODUCTS FOR SALE
FOR SALE
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NORTH CAROLINA RELOAD
Shaver Reload, Statesville, NC
• Norfolk Southern Mainline Served • Easy Access to I-85, I-77 & I-40 • Company Owned Truck Fleet • Outdoor and Indoor Storage • 12 Acres Fenced with Security Lighting • 25+ years Reload Experience
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(704) 872-3148 • Fax (704) 872-3146 Email Tom Lakeman shavers.reload@gmail.com
Call (714) 486-2735
JConlan@building-products.com
WANTED TO BUY
WANTED TO BUY
OUTSIDE SALES REPRESENTATIVE Hoover Treated Wood Products, Inc., the premier manufacturer of fire-retardant treated wood, is seeking an Outside Sales Representative. The ideal candidate is a motivated, success-driven professional with excellent communication and presentation skills located in the west, preferably near a western airport hub. A college degree with at least 5 years of documented sales success is strongly preferred. Building product channel sales and lumber or plywood sales experience is a valued attribute. This position is responsible for growing profitable sales through Hoover’s network of wholesale distribution partners. The candidate must possess the technical acumen to communicate the varied product and service benefits that define the Hoover brand. This position requires significant overnight travel. Hoover Treated Wood Products, Inc., offers a comprehensive benefits package which includes medical, dental, life and disability insurance, 401(k), paid holidays and vacation as well as annual bonus, profit sharing, and tuition reimbursement. Submit résumé to hr@frtw.com; no phone calls please. • Desired Skills and Experience • Written and oral communication • Verbal Presentation • Organization • Success driven • Willing to travel (overnight) extensively • Knowledge of commodity lumber and plywood markets • Channel sales experience • Experience utilizing a CRM solution • Proficient in computer applications (Microsoft Office Suite/G-Suite)
president and chairman of the board before retiring in 2002. He was also a VP of Mississippi Retail Lumber Dealers Association.
IN Memoriam Gerald Anson “Jerry” Jewett Jr., chairman emeritus of Gilcrest/Jewett Lumber Co., Des Moines, Ia., passed away Nov. 23. He was 93. After serving in the U.S. Army Air Corps during World War II and graduating from the University of Iowa, he became the fourth generation to enter the family-owned Jewett Lumber Co., Des Moines. He started as general manager, then rose to treasurer and finally president. When his business merged with the competing Gilcrest Lumber in 1985, Jerry became CEO. He was a past president of the National Lumber & Building Material Dealers Association, Northwestern
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Lumber Association, Iowa Lumbermens Association, and the local chapter of Hoo-Hoo International. Medford Memory “Mem” Leake, 90, retired president and chairman of Steel City Lumber Co., Birmingham, Al., died Nov. 25, following a year-long battle with lung cancer. He graduated from Duke University in 1950 with a degree in business and economics, then served as a special investigator with the U.S. Air Force during the Korean War. After his discharge, he joined the family business, Leake & Goodlett, Inc., Tupelo, Ms., as vice president. In 1969, he joined Steel City Lumber, becoming the company’s top salesman,
January 2019
David Paul Warren, 48, president and CEO of Gemini Coatings, El Reno, Ok., died of cancer Oct. 8. A graduate of Southwestern Oklahoma State University, he joined Gemini in 2000 as head of the IT department and soon became CIO. He was promoted to president and CEO in 2009. Frederick L. Munson, 96, founder of Munson’s Building Supplies, Oneonta, N.Y., passed away Nov. 26. An Army veteran of WWII, he was a carpenter before starting the lumberyard with wife Audrey in 1964. Lee H. Castles, 80, and his wife, Isabel, owners/operators of Castles Lumber, Boiling Springs, Pa., passed away in November, 16 days apart. Building-Products.com
DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.
ADVERTISERS Index
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Forest Products Society – Jan. 7-8, technology program, Mississippi State University, Starkville, Ms.; www.forestprod.org.
C&C Resources www.ccresourcesinc.com
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Appalachian Lumbermen’s Club – Jan. 8, meeting, Asheville, N.C.; www.lumberclub.org.
Crumpler Plastic Pipe www.cpp-pipe.com
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CT Darnell Construction www.ct-darnell.com
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Everwood Treatment Co. www.everwoodtreatment.com
Mid-America Lumbermens Association – Jan. 10-11, winter meeting, Columbia, Mo.; www.themla.com.
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Hood Industries www.hoodindustries.com
House-Hasson Hardware – Jan. 10-12, dealer market, Nashville, Tn.; www.househasson.com.
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International Beams www.internationalbeams.com
Guardian Building Products – Jan. 10-13, dealer show, Orlando, Fl.; www.guardianbp.com.
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United Hardware Distributing – Jan. 11-13, spring market, Minneapolis, Mn.; www.unitedhardware.com.
Jordan Lumber Co., Lee Roy www.jordanredwood.com
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Northeastern Retail Lumber Assn. – Jan. 14, intro to building materials; Jan. 15-18, estimating courses, Rensselaer, N.Y.; nrla.org.
Lonza www.wolmanizedwood.com
Cover II
Maze Nails www.mazenails.com
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Norbord www.norbord.com
Surfaces/International Surface Event – Jan. 23-25, Mandalay Bay Convention Center, Las Vegas, Nv.; www.intlsurfaceevent.com.
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North American Wholesale Lumber Assn. www.nawla.org
Mid-America Lumbermens Association – Jan. 24-25, Kansas winter meeting, Hays, Ks.; www.themla.com.
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Northeastern Retail Lumber Assn. www.nrla.org
Northwestern Lumber Association – Jan. 28-29, expo, St. Cloud, Mn.; www.nlassn.org.
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Window & Door Manufacturers Association – Jan. 28-29, Northeast winter conference, Baltimore, Md.; www.wdma.com.
Pacific Woodtech www.pacificwoodtech.com
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Northeastern Retail Lumber Assn. – Jan. 28, intro to building materials; Jan. 29-Feb. 1, estimating courses, Mansfield, Ma.; nrla.org.
PotlatchDeltic www.potlatchdeltic.com
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PPG Machine Applied Coatings www.ppgpro.com
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Ray White Lumber www.raywhitelumber.com
Northwestern Lumber Association – Feb. 6, leadership conference, Wisconsin Dells, Wi.; www.nlassn.org.
Cover IV
Roseburg Forest Products www.roseburg.com
Building Material Suppliers Assn. – Feb. 6-7, building products show, Hickory Metro Convention Center, N.C.; www.mybmsa.org.
Cover I
Simpson Strong-Tie www.strongtie.com
Northeastern Retail Lumber Association – Feb. 6-8, LBM Expo, Hynes Convention Center, Boston, Ma.; www.nrla.org.
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Illinois Lumber & Material Dealers Association – Feb. 7, expo, East Peoria, Il.; www.ilmda.com.
Snider Industries www.sniderindustries.com
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Mississippi Lumber Manufacturers Association – Feb. 7-8, annual meeting, Jackson, Ms.; www.mlmalumber.com.
Southern Forest Products Association www.sfpa.org
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Southern Pine Inspection Bureau www.spib.org
Budma – Feb. 12-15, international construction & architecture fair, Poznan, Poland; www.budma.pl/en.
9
Monroe Hardware Co. – Feb. 15-17, spring market, Myrtle Beach, S.C.; www.monroehardware.com.
Swanson Group Sales Co. www.swansongroupinc.com
13
LBM Advantage – Feb. 18-20, annual convention & show, Orlando, Fl.; www.lbmadvantage.com.
Timber Products Co. www.timberproducts.com
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International Builders Show – Feb. 19-21, Las Vegas Convention Center, Las Vegas, Nv.; www.buildersshow.com.
Versatex www.versatex.com
35
Westervelt Lumber www.westerveltlumber.com
Northwestern Lumber Assn. – Jan. 8, sales course, Eagan, Mn.; Jan. 9, yard & delivery workshop, Shakopee, Mn.; nlassn.com. Missouri Forest Products – Jan. 8-9, winter meeting, Jefferson City, Mo.; www.moforest.org.
Lake States Lumber Association – Jan. 16-18, winter meeting, Appleton, Wi.; www.lsla.com. National Hardwood Lumber Association – Jan. 21-30, Leadership Development Retreat, Greenville, S.C.; www.nhla.com.
National Association of Wholesale-Distributors – Jan. 29-31, executive summit, Washington, D.C.; www.naw.org. Indiana Hardwood Lumbermens Assn. – Feb. 4-6, convention & expo, Indianapolis, In.; www.ihla.org.
HDW – Feb. 7-9, market, New Orleans, La.; www.hdwinc.com.
Orgill – Feb. 21-23, market, Orlando, Fl.; www.orgill.com. Building-Products.com
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FLASHBack 95 Years Ago This Month
Ninety-five years ago, BPD’s sister publication, The
California Lumber Merchant, reported on a holiday publicity stunt by the Valley Lumber Co. of Fresno, Ca. The company mailed gift cards to thousands of customers and prospects that could be redeemed for Christmas trees. In all, they handed out more than 6,000 trees. In other news from January of 1962: • Moore Dry Kiln Co., Jacksonville, Fl., was granted a U.S. patent for a new “progressive dry kiln” providing graduated heating. The new system was said to give properly balanced temperature and humidity for correct, uniform seasoning of wood. In 1969, Moore Dry Kiln would merge with sister company Irvington Machine Works to form today’s Irvington-Moore. • The steamer C.A. Smith, loaded with 1.5 million ft. of lumber, struck on the submerged rocks of the North Jetty at the entrance of Coos Bay, Or., on the morning of December 16, 1923, and was a total loss. Nine of the crew were lost when a lifeboat capsized as it was being lowered into the water. The first mate on the tug Oregon also died. Rescue trips made repeated attempts to save the men,
PUBLISHER Jack Dionne devoted the front cover of The Merchant Magazine’s January 1924 edition to his sister publication, The Gulf Coast Lumberman, which had served as a template for The Merchant and—decades later—partial inspiration for Building Products Digest.
but were thwarted by the “roughness of the sea.” Seven crewmen did survive, though one had to spend the night on the wrecked ship before he could be located and saved. • Workmen in Sacramento, Ca., excavating for a sewer along 7th Street uncovered the rails of a horsecar lumber railway that operated along I Street more than 60 years earlier. The rails were made of 4x6 redwood, with a steel band along the top and one side, and were well preserved. Digging crews struck the rails about 8 feet below the surface of Seventh Street, which was filled in after the Great Flood of 1860-61. • Hoo-Hoo International predicted its largest initiation in the history of the lumber fraternity during the upcoming annual meeting of the Western Retail Lumbermen’s Association in Los Angeles. With as many as 1,000 lumbermen from throughout the West expected to attend, the group said well over 100 of them would be inducted at a “concat” held during the meet. EMERSON CAREY Fibre Products, Hutchinson, Ks., heavily promoted its “fibre-sized and prime-dipped” wallboard product, Atlas Board.
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