BPD February 2017 by 526 Media Group

FEBRUARY 2017

BPD

Building Products Digest

THE VOICE OF THE LBM SUPPLY CHAIN — FOR 35 YEARS

SECRETS FOR BETTER BUYING • OSB FORECAST • DECKING & RAILING TRENDS

CONTENTS February 2017

Volume 36 n Number 2

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Feature Story

Special Features

10 SECRETS FOR BETTER BUYING

12 INDUSTRY TRENDS

PROFITABILITY IS NOT ONLY HOW

DR. DECKS ON WHAT TO WATCH IN OUTDOOR LIVING FOR 2017

MUCH YOU SELL AND AT WHAT PRICE, BUT ALSO HOW EFFICIENTLY YOU BUY.

EIGHT PURCHASING AND TRADING EXPERTS SHARE 51 QUICK STRATEGIES TO BUY BETTER.

14 PRODUCT SPOTLIGHT

STAINLESS STEEL GOES FROM INSIDE TO OUT

18 INDUSTRY TRENDS

FEBRUARY 2017

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WHAT TO STOCK TO MAKE DECK UPDATES SIMPLE

THE VOICE OF THE LBM SUPPLY CHAIN — FOR 35 YEARS

SECRETS FOR BETTER BUYING • OSB FORECAST • DECKING & RAILING TRENDS

20 PRODUCT SPOTLIGHT

OSB FACES MORE RESTARTS

32 NAWLA: THINKING AHEAD

TRICKY COMPLICATIONS FOR SUPPLIERS SELLING TO BIG BOXES

40 EVENT RECAP

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Departments 8 ACROSS THE BOARD 22 COMPETITIVE INTELLIGENCE 24 OLSEN ON SALES 26 EVANGELIST MARKETING 36 MOVERS & SHAKERS

16 INDUSTRY TRENDS

WOOD TOPS DECKING FORECAST

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44 NEW PRODUCTS 52 ASSOCIATION UPDATE 54 DATE BOOK 56 CLASSIFIED MARKETPLACE 56 ADVERTISERS INDEX 57 IN MEMORIAM 58 FLASHBACK

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Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn

JANUARY 2017

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Building Products Digest

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

THE VOICE OF THE LBM SUPPLY CHAIN — FOR 35 YEARS

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

2017: THE YEAR AHEAD • SOUTHERN PINE UPDATE • IMPORT DUTY CONFLICT

Eassy on the eyes. Easy to o install.

DECEMBER 2016

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Director of Sales Chuck Casey chuck@building-products.com

Building Products Digest

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

2017 DECKING & RAILING BUYERS GUIDE • NAWLA TRADERS MARKET RECAP

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ACROSS the Board By Patrick Adams

What do you do?

S YOU CAN probably guess from the amount of news, information and event coverage we provide, our team spends a LOT of time on the road! I was on a flight recently and the woman sitting next to me asked one of the normal airplane questions, “So, what do you do?” Perhaps it was exhaustion from several action-packed days at IBS, but the question made me think. I’ve been asked this question hundreds of times on flights over the past couple of decades, but this time the answer didn’t seem as straight forward. I replied, “Do you want the simple answer or the more interesting explanation?” With a curious look on her face, she said, “We have the next five hours until we get to LAX, let’s make it interesting!” I’m a lucky guy because I get up every morning and think about this very thing. It is a heavy weight that I carry with pride and work hard to get better at every day and I share it because many of us “do” the same thing. Have you actually spent time considering “what you DO?” First and foremost, I am a provider and protector. I have an amazing family that every day has me wondering what I did to be so fortunate. I think about how to make decisions that assure my family is provided for today, tomorrow, through our lives, and hopefully my children’s lives—and one day their children, too. I think about how to provide an example and experiences that will serve them all to have fuller, happier lives that make them confident and prepared to tackle anything that life presents them with. I work to be a role model that makes my wife proud and that my children will someday look up to. I don’t always succeed at this, but I admit when I fall short and try to show how we can learn from our mistakes. I’m also an employer. I have an amazing team for whom I try to provide an exciting, interesting and fulfilling place where they’ll spend the majority of their time each day. It weighs heavily on me that during this time, they are away from their family and friends. That their time at work shapes how they feel about themselves and the mood they go home in. I think how this mindset can affect how they interact with their spouse, their children, and their community, and how if their passion for work can extend beyond the workplace, how much better the world around them can be. I also think about how if I take this responsibility for granted, their jobs and lives could be jeopardized. I am also responsible for serving an entire industry. I hold the role of our publications as an industry resource very seriously. For over 95 years, leaders have trusted us to provide the “real news,” information and advice they con-

sider to make good decisions for their employees and customers. I believe there is no shortcut for this and the responsibility of providing trusted journalism is a great honor that an industry bestows on very few. Very early in my career, a wise, successful man told me this: “My success in life is measured by many roles and has come from only one thing. I have never been the smartest, the luckiest, or the wealthiest. My only advantage has been that I was always willing to work harder than anyone else at doing the things nobody else cared to do.” What do I do? It’s not an easy question to answer, but I know I get up every day excited about challenges and responsibilities of the day ahead. I’ve spent a lot of time on the road in this industry sharing time with all of you. I know that we have this in common from our discussions, from how your staff is proud at their longevity in their respective roles, and how each of our discussions inevitably lead to mention of your family, your employees, your community, and this industry that we hold so dearly. As we landed in L.A., my seatmate smiled: “I got onto this plane thinking how much I’m tired of traveling. Now, I’m going to go home and wake up tomorrow thinking about how lucky I am to have so much responsibility.” I hope for just two things for all of you as we enter another year—that in your work you feel as fortunate as I do to serve. And, second, that you’re never unfortunate enough to sit next to me on a plane and ask a simple question like, “So, what do you do?”

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

Building Products Digest

February 2017

Building-Products.com

FEATURE Story Compiled by David Koenig

51 secrets for better buying P

ROFITABILITY IS NOT only how much you sell and at what price, but also how efficiently you buy. Building Products Digest asked a number of purchasing and trading experts for simple ways LBM retailers and wholesalers can buy better.

5 Buying Tips for Moving Markets By James Olsen, Reality Sales Training (realitysalestraining.com)

1. Christmas-Tree buying. When the market hits bottom and moves, we make our biggest purchase. As it continues to climb, we continue to buy, just a little less each buy back until it tops out. In this way we are always “in the market” but mitigate risk. 2. Be a player. No matter our size, we have a number we will pay when we talk to suppliers. Suppliers hate to be “shopped” and while they prefer to get their price, will respect and deal honestly with those who will “give a number.” 3. If we want to buy at the bottom, we have to buy on the way down. Those who wait to “pick the bottom” always miss it. Making aggressive offers in down markets will keep us in the game and will help us buy below the bottom. If the majority of the market bounces at $350, some of the offers that were made the day before at $320 and $340 were accepted. Note: Make sure our offers are aggressive enough in down markets. Too many “good deals” turn into “goo deals” because the original offer was too generous. 4. Historical spreads. If 2x4 16’ normally trades at a $30 premium to 14’s and we can pick them up for a $20 premium, this is a good deal. We watch for these kinds of spreads all the time, but especially when markets bottom. Spreads happen across lengths, species and qualities of

Building Products Digest

February 2017

stock. Spreads go both ways whether we are looking at premium vs. average stock or average vs. premium. If the current spread is advantageous vs. history, buy it. 5. Discount tallies, grades and lower quality products. Discounted items usually bring an even bigger discount in down markets. Picking these items up at the bottom creates margin opportunities.

5 Golden Rules of Buying for Retailers By Marie-Louise Jacobsen, Retail Management Solutions and author of How to Succeed in the Retail Industry

1. A retailer must map out its seasonality. Determine which months/periods consumers will be shopping building material and what will be the most likely items these shoppers will be looking to buy. 2. Think in terms of just-in-time inventory rather than just-in-case inventory. This is linked to the retailer’s months stocks on hand and their average monthly stock turn—by category, by class, and in some cases down to the unique SKU. 3. Monitor sell-throughs. Sell what you stock and stock what you sell. 4. Bulk purchases can lower the cost; however, be mindful of the quantities involved. 5. A key matrix to determine the desired inventory level is by calculating one’s stock turn. For a six-month buying plan, add all month-end stock holding, divide that total by six to get the average inventory, then take the average and divide that by the six-months planned sales. That will determine how many months-stocks on hand you have or are carrying at any given time during that period. The stock turn is linked to the retailer’s ROI, so it’s quite important.

Building-Products.com

10 Criteria for Selecting Vendors By Purchasing & Procurement Center (purchasing-procurement-center.com)

1. Years in business. You need to know that the company is established and ready to service your requirements. 2. Ability to constantly supply products or services. A vendor that has supply issues will affect your ability to supply your customers. 3. Range of products offered. 4. Flexibility to allow changes in orders or product lines. Does the vendor penalize businesses that need to change their orders? 5. Testimonials and references. These are valuable if you can check that the vendor is reliable and as they purport to be. 6. Sustainability and financial stability. The last thing you want is to have to change your vendors quickly because one of them has gone out of business. 7. Prices. Are discounts negotiable? 8. Delivery times. You need to know that deliveries can be made where and when you want them. 9. Terms of business. Payment terms are particularly important as they impact upon your cash flow. 10. Customer service. Always an important part of any relationship. What is the availability of ordering and help staff? Are they cordial, professional, knowledgeable and easy to contact?

4 Reasons to Buy National Brand Merchandise By McGraw-Hill/Irwin

1. Helps dealers build their image and traffic flow 2. Reduces marketing/advertising expenses 3. More desired by customers 4. Easier to return or dispose of excess merchandise

4 Reasons to Buy Private Label or Generic Merchandise By McGraw-Hill/Irwin

1. Unique merchandise not offered by competitors 2. Exclusivity boosts store loyalty 3. Difficult for customers to compare price with competitors 4. Higher margins

4 Ways to Avoid Overbuying Merchandise By Bob Phibbs, The Retail Doctor (retaildoc.com)

1. Know your stock. Keep your best-sellers in stock by monitoring your POS category reports. Check sales within each category every week, and balance to outstanding orders. 2. Cull your stock. Cut those that continue in the bottom 20%—even if you really “love it.” 3. Plan your stock. Before buying anything, make sure Building-Products.com

you know what it will replace. Impulse is for customers, not store buyers. 4. Build to your stock level. Come up with an optimal level of merchandise based on your POS reports, your merchandise turn, and profitability—then create your open to buy and buy to fill.

4 Questions to Improve Vendor Collaboration By Charles Dominick, Next Level Purchasing Association (nextlevelpurchasing.com)

1. “What can we do to be a better customer?” 2. “What requirements of ours force you to jack up your price?” 3. “What do other customers of yours do well that we don’t do well or don’t do at all?” 4. “How can we collaborate to take cost out of the supply chain so that both of our organizations can be more profitable?”

5 Advantages of Localized Buying By Pearson Education (pearsoned.com)

1. Closer knowledge of each location’s true requirements 2. Transporation costs can be reduced when product is shipped direct to an individual location instead of first to a central warehouse 3. Reduced lead time 4. Improved coordination with local production schedules 5. Promotes democratic management practices

7 Advantages of Centralized Buying 1. Greater quantity discounts 2. Bulk buying strengthens the bargaining position of buyer, resulting in better prices, greater discounts, and more agreeable terms. 3. Reduced inventory carrying costs 4. Fewer, larger shipments translate to lower transporation costs per unit 5. Elimination in duplication of efforts in buying function and standardization of buying activities 6. Centralized records can be kept of all purchases 7. Easier for suppliers to know whom to contact/fewer points of contact for suppliers

3 Tips for Retail Buying By Karen Tryman, National Association of Retail Buyers (narbuyers.org)

1. Look at analytics to see what’s trending in the industry and market. 2. Don’t second guess yourself. Go with your gut. You know what your demographics are and who your customers are. If you have to talk yourself into it, don’t. 3. Tread carefully. Test first. Respond to the results. February 2017

Building Products Digest

INDUSTRY Trends By Jason “Dr. Decks” Russell

Cutting-edge deck trends for 2017 W

remain a place to congregate and enjoy the great outdoors, here are 10 trends that are ready to takeoff this year. HILE DECKS WILL

Deck Board Bending Curves are becoming increasingly popular in the decking world, contradicting the antiquated idea that all decks must have square corners. Using a Seattle-based product called HeatCon, I am able to use the control box and two silicone heating blankets to gradually raise the temperature of the PVC decking board, which is why I like to use products like AZEK. Once I get it to the right temperature, the deck board can be manipulated to any shape the homeowner wants. Now that I’ve started doing curves, I don’t think I’ll ever stop.

Heating & Lighting to Extend Seasonality One thing that is definitely changing in the decking industry is the outdated idea that decks can only be used when it is warm outside. With more and more people thinking about their deck as an extension of their home, rather than just a place for summer barbeques, deck usage is extending deeper into the fall, and even into the winter in some cases. While temperatures might drop and days might be shorter, heating and lighting is a trend that is expected to pick up in the New Year. Ceramic style heaters allow for spot heating and fire pits continue to grow in popularity as additions to outdoor spaces, adding another level of warmth and comfort to extend the seasonality of your deck.

Decks Built for the Elements Because decks are predominately uncovered, they are exposed to any and all elements. Wooden decks might be cheaper up front, but they age at a faster pace with exposure to sun and moisture, requiring a lot of upkeep. Consumers are increasingly investing in decking materials that offer a slew of benefits and are longer-lasting.

Taking the Inside, Outside With new development in outdoor building materials and the increased use of technology, deck owners can enjoy more of their day-to-day activities outdoors. Outdoor

Building Products Digest

February 2017

NEW DECK project incorporates board bending and several other hot outdoor living trends. (Photo by AZEK/TimberTech)

kitchens are gaining in popularity, and to make the deck usable even when the weather might not be perfect, I expect to see a lot more covered area spaces. With the decreasing price of televisions, outdoor entertainment systems are more popular with waterproof audio systems allowing for the complete entertainment experience outside. The decking area has transitioned from a place to eat dinner and go back inside into a place to spend the entire night entertaining.

Virtual Deck Design Before jumping into a big investment like a deck, many homeowners go back and forth on the idea before actually Building-Products.com

taking the plunge. Virtual deck design has become increasingly popular because it allows the customer to see what they are getting out of the investment before opening their wallet. Recently launched software tools and apps allow contractors and homeowners to visualize their dream deck designs before they are able to see the end result. There is really no need to go to work without a homeowner loving the 3D version before breaking ground.

Increase in Gray Decking Popularity Long gone are the days where all decks are wooden and brown. Manufacturers have released different paints and stains that are long-lasting and well-wearing, allowing homeowners to put more personality into their decks. Gray has become increasingly popular. AZEK and TimberTech, for example, offer eight different profiles of the color, and the neutral tone is expected to stay trendy for years to come as homeowners look for variety and differentiation in building their deck.

Fast Install No contractor wants to spend longer on a jobsite than needed. With a limited deck-building season for much of the country, builders want the fastest and easiest install possible so they can move on to the next project quickly. Light boards and railing options make one-person deck building possible. With a growing number of decks being built with each passing year, rapid, quality installs will no longer be just a luxury, but a necessity.

Drawing Inspiration from Interests The best decks draw inspiration from their surroundings—even if it’s a little outside the box! Pizza might seem like an unlikely base for a successful building plan, but the deck that was recognized by the North American Deck & Railing Association (NADRA) was inspired by a pizza oven. That’s just one example of a larger theme. People want their outdoor living space to reflect who they are. Whether it’s a love for sports, music, greenery, water elements, or cooking, homeowners want to truly enjoy their time out-

Building-Products.com

doors, and they will be tapping into existing interests for inspiration in their deck design.

Composite Decking Times have changed since homeowners were conditioned to simply tolerate wooden decks that became warped and splinted away as they aged. Composite decking has become increasingly popular over the years as deck owners realized that wood decks just don’t have the same longevity when it comes to withstanding rough environments.

Rooftop Spaces As populations continue to increase in urban environments, rooftop decking is becoming increasingly popular in order to maximize the amount of space at hand. In many cities, wooden decks simply can’t withstand the wear and tear of harsh climates. Now, with new products that allow rooftop decks to last through a wide variety of different weather climates, the concept is expected to be a growing trend in the year ahead. Building product manufacturers have taken notice and introduced different solutions to the trend, such as lighter weight boards to make rooftop installations easier and Class A flame spread ratings—great for urban settings. As manufacturers introduce more advanced products for consumers and contractors to use in their decking ventures, the options are endless. Homeowners are now able to invest in their outdoor spaces with ease, knowing they will be long lasting and usable through at least three seasons of the year. Long gone are the days when decks can only be enjoyed on a sunny day, thanks in large part to these new decking trends that are expected to pick up steam this year. – Jason “Dr. Decks” Russell has been in the decking building industry for 25 years, landing the nickname “The Rebel Contractor.” He most recently took first prize for Best Alternative Deck in NADRA’s annual competition.

February 2017

Building Products Digest

PRODUCT Spotlight By Michelle Labovitz, Dominique Lescalleet, and Hilda Queiroz

Stainless steel goes from inside to out N

OTHING CAPTIVATES attention quite like stainless steel. Any appliance that incorporates stainless steel becomes instantly more appealing, and any building that incorporates it into the design looks more innovative. Stainless steel is truly in a league of its own. A combination of durability, aesthetics, low maintenance, and sustainability makes stainless steel a go-to material for builders, remodelers, contractors, and other design-build professionals. The ever-growing demand for stainless steel has led manufacturers to focus on creating innovative and stylish outdoor products. As outdoor living and sustainability

STAINLESS STEEL cable railing systems provide a sleek, modern look, as well as high durability and easy maintenance. (Photo by Feeney)

Building Products Digest

February 2017

become increasingly important to the design community, these companies, among others, have uncovered unique reasons why stainless steel is such a widely popular building material.

Stainless Steel & Recycling “I definitely believe that sustainability is one of the more important factors in the popularity of stainless steel. I also think its durability and aesthetic appeal play into its growth,” explained Praveen Sood, retail and product marketing manager at Feeney, Inc., a company that specializes in stainless steel cable railing systems. Stainless steel is made from iron, chromium, nickel and molybdenum, making it easy and cost effective to recycle. According to the International Stainless Steel Forum, stainless steel is composed of 25% old scrap products, 35% new scrap that is returning from production, and 40% new raw material. As a result, it becomes a product with not only design appeal, but broad environmental appeal as well. Stainless steel is 100% recyclable with no degradation; a rare feat amongst building products. And, according to the ISSF, roughly 92% of stainless steel used in architecture, building, and construction around the world is recaptured and recycled at the end of the project’s lifetime. In addition, the Specialty Steel Industry of North America estimates that of the stainless steel produced in North America, the post-consumer recycled content rate is 75% to 85%. The reason this isn’t even higher is that the very long use cycle and increased demand for stainless steel have reduced the available supply of post-consumer recycled stainless steel. Sood explained that because so much building material often gets tossed away, stainless steel has the potential to play a big role in the recycling movement. Because of its extreme durability and long life-span, the amount of waste in landfills is significantly reduced. Additionally, due to its high scrap value, stainless steel rarely finds its way into disposal sites, but when it does, it has no damaging effect on soil or water. Therefore, stainless steel becomes an essential piece of the puzzle when it comes to the environmental consciousness movement. Building-Products.com

Stainless Steel & Durability Sustainability and durability go hand in hand. If a product claims to be sustainable but doesn’t have a long lifespan, can it really be considered “green?” Stainless steel boasts a balance of both. It is made to withstand the test of time and extremely harsh weather conditions, provided that it’s properly maintained. Because its products are available nationwide, Feeney has to ensure its products can endure harsh conditions from snow to salt water in the air, while maintaining the original design aesthetic. “While stainless steel is typically very low maintenance, people should always remember that it is stain-LESS—not stain-FREE—and will require some maintenance, depending on how and where it’s used,” Sood said. And, even though stainless steel does not chip or crack, it can tarnish and even corrode if not properly protected and maintained. Stainless steel maintenance, while necessary, is not a challenging task since companies like Feeney, Inc. produce stainless steel cleaners and protectants, such as its SteelRenewal and SteelProtect.

Stainless Steel & Design Versatility is also one of the many appealing traits of stainless steel, which begs the question: how is this material being used? Traditionally, stainless steel has either been used in kitchen appliances or as a conventional building material. But as it grows in popularity, the innovative ways it’s being utilized are also expanding, including in the realm of outdoor living. Though outdoor kitchen cabinetry may be made from 100% stainless steel, they don’t resemble the classic material commonly seen in everyday home appliances. “With competent design, stainless steel can be used for many more applications than typically thought. We are constantly asked if we can use the material in various innovative design projects,” said Mitch Slater, president of Danver Stainless Outdoor Kitchens. “The use of powder coat finishes enables us to design outdoor kitchens without sacrificing the style that is typically found indoors. This type of finishing technology allows us to create a look that you wouldn’t normally find, such as various wood grains or colors that allow for a seamless transition between the indoor and outdoor living spaces.” Without compromising style, manufacturers are able to create spaces that are welcoming, functional, and weather proof, which in conjunction have increased the popularity of outdoor living. Feeney is also at the forefront when it comes to incorporating stainless steel into its cable railing products. With nationwide distribution, the company has to ensure its products can endure harsh conditions from snow to salt water in the air, while maintaining the original aesthetic. “Just seeing the number of ways that companies are using the material has been interesting to watch,” said Sood. “It’s gone from primarily an industrial material, to consumer products, to residential and commercial interiors, and now we’re seeing it continue to grow into really innovative applications in building envelopes, exterior living spaces such as decks, and even landscaping. It’s proven to be incredibly versatile.”

Stainless Steel & Adaptability For any building product, adaptability is important. Gama Sonic, a manufacturer of solar-powered outdoor lighting, answered when customers longed for a modernBuilding-Products.com

MARKET DEMAND is leading to more and more outdoor lights made from stainless steel—but they’re also offered in a variety of different finishes and custom colors. (Photo courtesy of Gama Sonic)

style, durable, product by developing the Bollard, made entirely from stainless steel. This new addition to its already extensive line of outdoor lighting solutions is an energy and cost-effective solution for illuminating walkways, driveways, sidewalks. And, better yet, it features the company’s EZ Anchor Mounting System, making the installation process easy. “The main reason for creating this product was really a market demand. We know that people are looking for stainless steel fixtures, particularly for landscape lighting,” said Itay Parness, vice president of sales and marketing at Gama Sonic. “The natural sustainability of the material combined with our new solar LED bulb technology results in a highly energy-efficient, highly-green product.” Similarly, Danver is also experiencing increased market demand when it comes to stainless steel. “Since stainless steel has so many valuable traits, it’s the choice material for the design community. However, because we can change its appearance with different finishes and custom colors, the material can easily adapt to any living space,” Slater explained. “This opens up many options for the designer, architect or builder to create unique spaces indoors or outdoors without compromise.” Being able to balance beautiful designs with a welldeserved trust of the material is what makes stainless steel the ultimate building material for architects, builders, and interior designers everywhere. At the end of the day, functionality, durability, low maintenance, and aesthetics are the main deciding factors for any appliance or building product. For homeowners, stainless steel is a statement and a symbol of quality but architects and builders know that stainless steel is more than just a good looking building product; it is the building product that’s here to change the industry. Trends will come and go, but stainless steel is here to stay. February 2017

Building Products Digest

INDUSTRY Trends By David Koenig

Higher & faster Decking forecast to jump in coming years

market continues to accelerate, building on the trend of extending the indoor living space outdoors to create a seamless transition between a home’s interior and exterior. “Global Decking Market 2016-2020,” a new report from Technavio, expects a compound annual growth rate of 6.23% during the period 2016 to 2020. The growth represents a slight up-tick, primarily attributable to rebounding economies and housing markets. In the U.S., depressed housing market was a key aspect of the global financial crisis when the housing activity plunged to record low in 2009. However, a recovery in residential housing construction has gained momentum with annual new housing projects in 2014 reaching over 1 million for the first time since 2007. Wood was the most common material for decking, accounting for roughly 40% of the overall revenue generated by the global decking market. The primary reason is considered to be its high availability. Plastic decking is the fastest-growing segment of the global market. It includes materials such as polyvinylchloride (PVC), HDPE, LDPE, and polypropylene (PP), which HE GLOBAL DECKING

Wood Remains Decking Leader The wood decking market is expected to grow 1.43% annually through 2021, reaching $7.81 billion in value. The market is driven by factors such as rapid urbanization, rising construction activities in emerging economies, and largescale investments in the industrial and infrastructure sectors. The repair and remodeling segment, however, will dominate the market, outpacing the volume of materials used for new decks on new houses. Currently, North America is the largest consumer of wooden decks, followed by Germany and China. The AsiaPacific wooden decking market is predicted to register the fastest growth during the forecast period, particularly India and China. They are experiencing increases in their middleclass populations and rising incomes, which are accelerating the per capita spending on all manner of construction. Among materials, pressure treated wood is both the most common type of wooden decking and is projected to grow at the fastest pace, surpassing redwood, cedar, hardwoods and other untreated species.

Building Products Digest

February 2017

PRESSURE TREATED southern pine is the most common of all decking materials. (Photo courtesy of Lowe’s)

Deck Preservative Use Growing Demand for wood preservatives in decking is projected to increase 12% annually through 2020 to $300 million, according to a new Freedonia Group study. Gains will be driven primarily by the widespread shift among preserved wood retailers toward stocking a greater concentration of ground-contact-rated decking materials and taking smaller orders for above-ground-rated decking, due to new AWPA standards. Preservative growth, however, will be restrained by endusers’ continuing migration to non-wood decking. are lightweight and durable, making their shipping and installation hassle-free and simple. Composite decking contributed more than 20% of the overall revenue generated by the global decking market. The report said a primary challenge facing the wood deck market—and the forest products industry in general— is the “authenticity” of the wood taken, suggesting increased desirability for decking with FSC certification or other eco-label. Growth may also be restricted by fluctuations in wood and related material prices and the availability of substitutes like plastic and wood-polymer composite decking. Building-Products.com

MARGIN Builders By Jase DeBoer, Deckorators

What you should stock to make deck updates simple B

ATHROOMS, KITCHENS

and decks. What do they have in common? They all consistently top of the list of investments that increase home value â&#x20AC;&#x201D;and they all can be transformed with easy, affordable updates. As spring draws closer, homeown-

ers naturally start thinking about their outdoor living spaces. And while new deck projects may be the focus for many dealers, there is also a significant opportunity to cater to homeowners looking to breathe new life into their existing decks.

SAFETY FIX: Adjustable deck gates now come in styles that complement popular railing styles.

Building Products Digest

February 2017

There are many reasons why homeowners desire to update their decks. Whether it be improved dĂŠcor, enhanced entertaining, or added safety, stocking certain items can help dealers become a destination for simple, easy-to-install deck updates.

(All photos courtesy of Deckorators) Building-Products.com

Safety First As the old saying goes, safety first. Many homeowners seek to update their existing decks to improve safety. When families grow, the staircase off the deck can become a danger to small children. Stocking items like adjustable deck gates that complement various railing styles helps homeowners easily remove the danger. Another easy safety update is a graspable handrail. These secondary handrail programs install easily on existing railings. With the right components in stock, this is an easy DIY project for homeowners—and a codecompliant solution for many building projects.

Take It from the (Post) Top One of the easiest items to stock— and one of the easiest updates to a deck—is the addition (or updating) of post caps. There is a post cap to fit almost any-sized wood or composite post—and to suit almost any style. Depending on post spacing, an average 16 ft. by 20 ft. deck with stairs may require 12 to 14 post caps. While some caps add a nice splash of color or style, others offer solar or low-voltage lighting options to help homeowners enjoy their living space day or night.

Light Up the Night A new light fixture can transform a bathroom or kitchen. Decks are no different. Solar and low-voltage lighting options are a great upsell opportunity for a new deck project, and a great program to have in stock for homeowners looking to enhance their current deck. From a stocking strategy perspective, lighting is a natural counterpart to traditional post caps. Many homeowners will invest in solar or low-voltage post caps for corner or stairway posts—and choose matching traditional post caps for the remaining posts. In addition to lighted post caps, stocking options can range from post sconces and baluster lights to in-deck lights great for illuminating stairs and walkways. Become a destination for homeowners seeking to add both ambiance and safety to their deck by stocking solar and low-voltage lighting options.

Set in Stone Deck posts are hard to replace once installed. But sometimes, dressBuilding-Products.com

CHANGING OUT post caps is one of the easiest, highest impact updates to a deck.

ing up old posts can be just the refresh a deck needs. Homeowners may consider adding stone postcovers as an accent to their deck. These covers are a beautiful, high-end update that can be easily stocked—and they also make beautiful displays on a showroom floor. Stone postcovers are commonly used to update the corner posts of a deck or the posts at the entrance of a stairway. They also can be used at the base of a pergola or can be stacked to cover taller posts holding up a second level-deck.

The Life of the Party When the party is indoors, friends and family congregate in the kitchen. When outdoors, guests tend to gather on the deck. And while the patio chairs are full with happy guests around the table, other guests are catching up over a cold beverage elsewhere on the deck. After watching guests search for a flat surface to set drinks or plates, a homeowner may be looking for an easy renovation to provide entertainment-ready surfaces on their deck. What better place to start than utilizing the railings? February 2017

A deck board railing connection system is an ideal solution. The systems typically involve simple brackets that mount perpendicular to the top of an existing railing, allowing for a deck board to be installed on top by fastening from underneath—creating a flat, fastener-free, entertainmentready railing surface for setting refreshments. The solution is a winwin for dealers and homeowners—the brackets are easy to stock and take up little shelf space, and homeowners can install these systems quickly and easily. While kitchens and bathrooms tend to get all the attention, remember that updating a deck is another great way for homeowners to get a great return on their investment. Stocking these simple, affordable, easy-to-install items can help establish a dealer as a go-to resource for remodeling a deck—and a destination for decks that are truly beyond ordinary. – Jase DeBoer is a marketing manager for Deckorators, a Universal Forest Products, Inc. brand. For more information, visit www.deckorators.com.

Building Products Digest

PRODUCT Spotlight By Jennifer Coskren, RISI

RISI Viewpoint

OSB faces more restarts H

ISTORICALLY , THE OSB market has had a propensity to overreach when it comes to capacity expansion. Given the market’s history, it was not entirely surprising that the 4.5 billion sq. ft. (BSF) of capacity restarted between 2012 and 2014 ultimately proved to be too much too soon. It left the OSB market struggling with overproduction as demand growth unexpectedly softened in 2015. OSB producers reported weaker profits through the year and had to curtail production to more closely align demand with supply. Fortunately, with producers managing production more stringently, production growth slowed enough to allow OSB prices to stabilize toward the end of 2015 and then accelerate in 2016. By the end of 2016, OSB producers were enjoying a much stronger profit picture and reporting healthier cash flows. Demand also continued to expand in 2016, albeit at a slower pace than in 2013 and 2014.

Expanding demand allowed the OSB industry to finally approach the point of fully absorbing the 4.5 BSF of capacity that was restarted earlier in the recovery. With stronger market fundamentals emerging in 2016, plans were announced for more capacity expansion in the OSB market with three potential OSB mill restarts at Huber’s Spring City, Tn., mill; Tolko’s High Prairie mill in Alberta, Canada; and Norbord’s Huguley, Al., mill—along with the first greenfield mill the market has seen in years, RoyOMartin’s Corrigan, Tx., mill. Louisiana-Pacific, meanwhile, is considering converting two idled mills into siding plants: Norbord’s former Val D’Or and Ainsworth’s former Cook, Mn., plant. LP has not made a definitive decision on either site and would likely not do so until early 2017. The RoyOMartin Texas mill is also not slated to start producing OSB until at least the third quarter of 2017, while the other OSB restarts are

OSB Market Will Tighten Through 2018 North American Demand/Capacity Ratios and U.S. Housing Starts

unlikely before 2018. Yet the anticipation of this additional capacity is raising red flags about another round of overproduction in 2017. While talk of restarted idle capacity may stir up worries over a repeat of what occurred in 2013 and 2014, this potential cycle of restarts is unlikely to negatively impact the market this year. Indeed, concerns over another round of overcapacity are, at least at this point, premature. According to RISI’s estimates of idle capacity, there are currently eight mills that could come back online with total nameplate capacity of 3.5 BSF. Of the 3.5 BSF, 1.1 BSF is located at three smaller Georgia-Pacific mills that are unlikely to reopen. That would leave about 2.4 BSF of potential additional capacity, with another 800 MSF at the new Corrigan mill. This is lower than the 4.5 BSF waiting to restart in 2012, when housing starts were only at 0.784 million units. Moreover, no definitive decisions have been made on any of the possible restarts, and any reopening could take nine to 12 months at least, depending on the state of the mill and how well it has been maintained. Consequently, new capacity will not have a material effect on the supply/demand balance in the market in 2017 as any additional supply from the planned capacity will not be available to the market until after demand reaches peak seasonal levels in the third quarter. Assuming housing starts reach consensus levels of at least 1.25 million units next year, the OSB market will grow considerably tighter in 2018, even with the chatter about mill restarts. – Jennifer Coskren is RISI’s senior economist, wood products; author of the Structural Panel Commentary; and coauthor of the North American Wood Panels 5-Year Forecast and North American Wood Panels 15-Year Forecast. Based in Bedford, Ma., she can be reached at (781) 734-8929 or jcoskren@risi.com.

Building Products Digest

February 2017

Building-Products.com

4 OF THE 17 WAYS

BOISE CASCADE WILL HELP YOU IMPROVE YOUR BUSINESS IN 2017: WE SWEAT THE DETAILS TO MAKE FRAMERS’ WORK EASIER: Get up close and personal with our products. You’ll see we still smooth the corners on VERSA-LAM® LVL and BCI® joists to reduce splinters, a common source of lost-time accidents.

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INTERESTED IN MORE WAYS WE CAN HELP YOUR EWP BUSINESS IN 2017?

OUR BIRTHDAY MARKS 60 YEARS OF TOTAL COMMITMENT TO YOUR SUCCESS: Founded in 1957, we are committed to our customers' success now and into the future. Engineered lumber, plywood, particleboard and lumber are all we make, and our people constantly look for ways to say "Yes!"

Download “17 WAYS TO GROW in 2017” at www.bc.com/ewp/17ways Please contact your Boise 6 2 17 Cascade Area Manager 10 14 4 or closest distributor 12 1 to continue the 17 WAYS T O conversation. IN 2017GROW .

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3 16 5 8

www.bc.com/ewp © 2017 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, the TREE-IN-A-CIRCLE symbol, BC FLOORVALUE and “Great products are only the beginning” are trademarks of Boise Cascade Company or its afﬁliates.

COMPETITIVE Intelligence By Carla Waldemar

Hipp-ster commerce S

HIP CAT FOOD to Mexico? K-cups to Christmas parties? Well, if you own a yard in a nowhere-stretch of Arkansas called Mountain View (pop. 2,700) that’s “pretty rural—you’d drive right past it,” allows Gentry Hipp, fourth-generation owner of Hipp Modern Builders Supply—you’re likely to think outside the box. Which means cornering e-commerce. Which we’ll get to in a minute. First, back to Gentry, who never planned on selling sticks (or K-cups). He’d trained to be an automotive mechanic at technical college before (oh, you know the story) the family business drew him back. So Dad hired the prodigal son, who’d spent summer vacations helping out. “But I didn’t get an office with a padded chair,” Gentry notes. “He put me through the paces. He

expected 110% from me. If a couple of us took a 30-second rest, I’d be the one who got scolded.” Hipp’s customers are an even mix of pros and local weekend warriors. The outfit didn’t feel the Recession as early as elsewhere, but, perversely, it’s hung on longer here. “We’re slowly coming back. There’s some new construction, but mostly add-ons, remodeling, new roofs. Nobody’s ready to jump in yet with full-fledged spec houses.” The upside is the growth in tourism, here in the heart of the gorgeous Ozarks: second homes, retirement homes being purchased and remodeled. Mountain View’s other claim to fame, explains Gentry, is “its status as the Folk Music Capital, with people sitting around Court Square pickin’—gospel, bluegrass, country.

ARKANSAS DEALER Gentry Hipp, alongside his adjacent greenhouse, is constantly exploring new, sometimes unconventional avenues for revenue.

Building Products Digest

February 2017

“We were close to the 8-ball, but we’ve weathered the storm without layoffs” of his 11-strong staff— “something I hate to do. Those folks are relying on me. (If someone’s messed up, that’s another story, and I’ve had to fire one or two.) Plus, if I lay off, my business would suffer.” Instead, “I’ve rethought inventory, and ‘Work harder for less money’ is our running joke. I’m not afraid to put in the hours to do what needs to be done.” What needed to be done was to explore new avenues of revenue. Gentry considers himself super-fortunate to have benefited from the advice and mentoring of a local banker friend, Ray. “I’d bounce ideas—a million of them—off him. We’d brainstorm back and forth—we had that kind of connection—and he’d been very successful at whatever ventures he’d undertaken. He’d phone me and ask, ‘What are you up to? Why aren’t you in the store?’ ‘Hey Ray,’ I’d say, “it’s only 7 a.m.!’ “We’d look at the structure of things, where the business was going, and toss around ideas, like ‘What about a blog?’ I was ready to kick one off when, suddenly, he died. “I sat back. It knocked the wind out of me. I was blindsided. While the dust settled, I asked myself, ‘Oh, man—now what’ll I do?’ So, just like WWJD—What Would Jesus Do?—I said WWRD: What would Ray advise? I’m on my own, but I can’t sit back and collapse. “So in 2010 I started work on my how-to blog. (Check it out on Hipps Help.) But I’d work on it late at night, after the kids were in bed, and it was, ‘Oh, man, it’s 10:00 and I gotta push through this.’ So I decided to partner with someone. I’d give him the list of what to cover; he’d write the nittyBuilding-Products.com

HIPP MODERN Builders Supply, Mountain View, Ar., strategizes expressly to set itself apart from the big boxes.

gritty and check the search engine results, and I’d be the editor. It freed up my time. We started linking the products used in the how to’s directly to my catalog to drive extra traffic. Same with Facebook, which we’d been using for give-aways and contests. It brought in new people. And I’m a people person.” As a people person, “I like to help people. I give 110% to the customers in the store; you become their therapist. If they’re having a bad day at work, or with kids in school, I help them with their problems—because, to me, that’s what it’s all about. Sure, I love to make money, but just as much, I like to help people. For that 15 minutes, I’m all yours.” That’s one key way Hipp sets itself apart from the nearby boxes, “with aisles 10 miles long, where it’s a 5K hike to find an item. They point ‘Down in Aisle 356.’ Here, I can see all my aisles, and I walk over with my customers.” And walk them through special finds for their leisure time on his other websites, too—items Gentry does NOT sell, like fine cigars, cocktails, barbecue recipes, and Hawaiian vacations. (See Gentry Review on HippsHelp. com, a site that also gives DIY tips, and Hipp’s BBQ hint on Facebook, etc.) “It’s mostly for fun, but there’s a little cross-platforming.” Which brings us back to selling cat food in Mexico. “One of my contacts on my blogs mentioned that his cat would not chow down on the Mexican brands available, so he asked if I could ship him what he needed.” Same with the cases of K-cups. “People wanted a particular hard-tofind flavor, so I bought out all the Kohl’s within 120 miles. I’d be on the phone locating them. I sold all I could get my hands on for a decent little profit.” It’s just one piece of the puzzle needed to prosper in these difficult times. Within the store itself, Gentry added a rental center in unused space when his mentor, Ray, told him, “You need to do this.” It’s proved popular and profitable. So has his addition of lawn & garden items, which started with a smart move when a local supermarket, carrying that stock, announced it was going out of business. He bought it all up, hired their L&G manager, and has since expanded to include larger items, like fresh Christmas trees. “We’ll expand on Valentine’s Day to keep it front-ofmind,” he adds. Speaking of additions, Hipp’s newest venture is carrying unfinished cabinets, which augment its stock of flooring, Building-Products.com

insulation, sheetrock, countertops and a full line of lumber. How does Hipp keep its pro customers happy? Not with the usual line-up of contractor breakfasts and open houses: “I’m not one who likes to ask for them to be my best friend for life that way.” Instead, Gentry gladly helps track down special order items (“which my competition doesn’t like to chase after”), scores them deals on pallets, and offers delivery via boom truck. And for the DIYer who comes in at closing time on Saturday wanting plans for a new deck, Gentry’s there to help him (while inwardly grinding his teeth and wondering why it didn’t occur to the guy at breakfast). The indie operator two miles down the road does offer some competition via the challenge of keeping Hipp’s 10,000 sq. ft. freshly stocked with the best mix of items. Gentry makes a point of training his staff to well serve the lady who may not know her way around a project. “Don’t make her feel that way. My pet peeve is talking down to her. You need to show respect.” Case in point: “Recently a lady came in at 5:00 looking for a bathroom wastebasket. ‘I hate going to WalMart,’ she said. Unfortunately, we don’t carry that small size, but I offered to order it, and I gained a new customer.” He also has a knack for entertaining callers with one of the most out-there phone-hold messages in this industry, which goes something like this: “While you’re waiting, do some pushups. One… two… three… Oh, here comes the boss, so I’ll put you back on hold.” Gets people talking, which is the kind of free advertising that’ll bring ’em in. So, Gentry, who’ll be running the store when you turn 100? “I’ll still be here!” he laughs. “I love it because I love the one-on-one interactions. I like to help people. And I take pride in my name. It goes back four generations; we’ve been around so long. If I lose sleep, it’s about keeping the family name good. I’m not here so much for the money, but pride in serving folks for four generations.” Carla Waldemar cwaldemar@comcast.net February 2017

Building Products Digest

OLSEN On Sales By James Olsen

Get motivated W

the motivation business. We try to motivate others to say yes to our idea, our proposal, or our deal. Most of you reading this are pretty darn good at it. What about self-motivation? I work with salespeople and sales teams who want to increase their sales. Some of these teams have technique challenges; their approach to sales has fundamental flaws that are inhibiting their growth. These problems can be fixed, ameliorated and accelerated in a short time. Some groups have motivation problems; these are a quagmire of frustration for anyone trying to impact sales growth in a positive way. The non-motivated think, “We aren’t saving babies… sales isn’t that important.” They are correct and not at the same time. Yes, we are not saving babies, but no… to some people sales is very important. We are not competing against people who are thinking about saving the world; we are competing against those who are passionate about their (sales) work. So, who are we saving? Saving might be a little dramatic, but we are definitely helping the following groups: ourselves, our families, our co-workers, our customers… and they are counting on us! E ARE IN

Why Aren’t People Motivated? I think the answer to this question might be akin to “Why doesn’t he/she get married?” We are motivated by different things at different times in our lives. We’ve all heard about or lived that perfect match that we just met at the wrong time in their or our lives. Love is grand but motivation is King/Queen. This is why hiring talent is only one criterion; is this the right time in this person’s life to buckle down and sell for a living? Early in my career sales was a necessary evil. I didn’t think I would do it forever, wasn’t crazy about it, and consequently delivered mediocre results to those who were counting on me. As basketball, golf and my social life faded to the background, my motivation to succeed grew and sales became easier and more profitable. I’ve never met a salesperson who wasn’t smart enough to succeed in sales. I’ve worked (and it’s work) with the non-motivated genius or charismatic class president. Give me a motivated meat-and-potato salesperson every time.

How Can We Get Motivated? “Tell me who your friends are and I’ll tell you who you are.” Motivation is contagious; if we need to catch it, the best way is to work with and be around other motivated people. The opposite is also true. Shun negative people.

Building Products Digest

February 2017

Read. Reading is a way to get motivated. Read books about how to sell, but also about successful people you admire. Successful people are self-promoters. We can learn from them while they inspire and motivate us. Exercise. We are animals. We need exercise. When we feel strong, we are strong. It makes us feel like taking on the world. Goal Setting. (I can hear you saying “ugh” from here.) I used to hate goal setting. On the years when I don’t have a written plan with specific goals, I do fine, sometimes great, but the years when I do set action-specific, written goals, I accomplish more and faster—and you will too! One hundred percent of the groups that have gone through goal setting with Reality Sales Training have thanked me (about six months) after! Pictures. Humans are visual. Pictures of family or things we desire are constant and subconscious motivators. Vision Statements. I encourage all my clients to write a “vision statement.” Look into the future or the present and see the world, your world, as you want it to be. While goal setting is strict, our vision statement should contain our wildest dreams. We write, in detail, how we want our lives to be. This can be intimidating but exhilarating. Big dreams provide big motivation. Gifts and Treats. “If I produce 40K in profit in June, I’m going to take a three-day vacation to San Diego with my wife.” Treats can be simple: “If I sell two this morning I’m going out to lunch, if not, it’s the yuck-truck and eat at my desk.” They can be elaborate and long term. We should have both. Hang out with winners, play games, plan, treat ourselves. Motivation makes life interesting and makes us more profitable. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

EVANGELIST Marketing By Alex Goldfayn

31 questions to grow your revenue T

HE MORE WE communicate with customers and prospects, the more we sell. The more that people hear from us, the more they buy from us. (The opposite is also true, the less they hear from us, the less they buy.) Most of the communications in my system of revenue growth are questions. I teach the customer facing people at my clients’ companies to ask these questions regularly, systematically. Here are 31 questions you can ask your customers and prospects to grow your sales.

Questions to Ask Yourself • How do I help my customers and prospects? (If you don’t know, ask them, they’ll tell you.) • Is my material—website, brochures and even personal emails—about my products and services, or about how I help my customers? • Am I asking for the business every time it is discussed? Am I pivoting to the sale at every opportunity? • Because my customers can feel my attitude, am I bold, confident and positive during every sales conversation?

Questions to Ask Your Customers To increase order size annual sales: • Did you know we also do x? Are you aware we do y? Most people don’t know we do z… • What percent of your business on this product or service would you guess we have? How do we increase that by 10% or 20%? (It’s a small increase for your customer, but for you it adds up in a hurry across 10 or 20 customers.) • What are you working on these days that I can help with? • Just checking in, how are you? What’s new? To get testimonials • What are some of your favorite things about working us? • How does working with me help you?

Building Products Digest

February 2017

• Does working with us save you time? How much time approximately? • Do you think working with us saves you money? Please talk about that. • Do we help you make money? How so? • Do we help you look good to your customers? How? Note: None of the questions above mention the word testimonial, which is stressful and uncomfortable. You’re just asking people for their feedback. Just like having a drink with a friend. To utilize testimonials • We have a customer similar to you, may I show you what they have to say about us? • Here’s what some customers like you have to say about us. Now can I help you this way too? To ask for referrals • Who do you know like yourself who would benefit from working with me like you do? Building-Products.com

• What colleagues do you work with at your company who I can help like I help you? I’d like to help your company more. • Who do you know outside your firm—either suppliers or customers—who I can help like I’m helping you? I’d like to make you look good. Note: I don’t mention the word “referral” in any of these. That’s another stressful word. Further, the key to actually getting an answer to these questions is silence. Ask the question, then stop talking and listen. Do not speak first. Let the person think and answer your question. You’ve been thinking about asking for this referral for a long time, but your customer has not! To pivot to the sale and close the business • Shall we write it up? • Would you like to add to this order, or shall we write it up separately? • Cash or credit? • We have that in stock, shall we get it out in today’s shipments? • Looks like we only have one (or a few) left—want it? • Will you be writing a check or financing? • Sound good? • How many would like? • We’ve had a lot of interest in those, would you like to lock them? Note: Once again, the key here is silence. Ask and wait. Don’t talk first. Let the customer think. They’re adults, tell

Building-Products.com

them you’re interested in their business, in helping them, and then let them answer your question. To follow up on quotes and proposals, when there is no response—to be sent in succession • Did you get the quote I sent yesterday after we talked? These things tend to get picked off by spam filters… let me know if it got to you. • It’s been a few days and I haven’t heard from you about the quote I sent. Where are you at on this? • Just one final check-in on that quote we discussed, as you haven’t responded to my follow-ups. I want to make sure I’m not dropping the ball on this. Do you still want it? Please let me know within 24 hours, since the quote is expiring. Ask these questions throughout your day. They don’t have to be exactly these questions either. Make them your own. And, in fact, own them. Then enjoy all the additional revenue that you generate! – Alex Goldfayn runs The Revenue Growth Consultancy and is author of The Revenue Growth Habit. Visit www.evangelistmktg.com. Alex Goldfayn The Revenue Growth Consultancy alex@evangelistmktg.com

February 2017

Building Products Digest

Buying Groups to Merge LBM Advantage and Independent Builders Supply Association have agreed to merge. The letter of intent is non-binding and subject to due diligence and approval by both co-ops’ shareholders. The combined organization will have 585 members operating over 1,000 lumberyards across 34 states in the East, Midwest and South. Steve Sallah will remain president and CEO of LBM Advantage. IBSA president Tim Johnson will become a VP overseeing his current staff and

members, and with LBM Advantage VP Bob Carson, looking over the growth and expansion of the combined company in the South and Southwest. LBM Advantage will operate out of four locations: New Windsor, N.Y.; Grand Rapids, Mi.; Smithfield, N.C.; and Monroe, La.

Baton Rouge Dealers Combine Holmes Building Materials, Baton Rouge, La., has acquired Ed Price Building Materials, Baton Rouge, and will consolidate its local retail store, Sherwood Forest showroom, and door

plant at the newly purchased site. The opportunity arose just as Holmes was beginning to outgrow its Greenwell Springs location. “The new space gives us much more land, retail space, parking and warehouse space along with direct access to rail transit. It will help our business run more efficiently as well as give us plenty of room for future growth,” said fourth generation owner Matthew Holmes. The current Ed Price location will undergo a complete remodel and will remain open through the transition. The seller continues operating five Bailey Lumber & Supply branches in Mississippi.

DEALER Briefs RP Lumber is moving into the former ProBuild site in Silvis, Il. RP expects a March opening for the seven-acre yard, which has been vacant since ProBuild relocated to Davenport, Ia., several years ago. South Patrick Hardware & Lumber, Indian Harbour Beach, Fl., closed Jan. 4 after 54 years.

84 Lumber Co. shuttered its 19year-old store in Watertown, N.Y., in early December. At the same time, 84 paid $2.7 million to buy the Bradenton, Fl., site it has leased for a store since 2007. Burggraf’s Ace Hardware , Cottage Grove, Mn., was opened Jan. 4 by Steve Burggraf. Meyer’s Ace Hardware , Douglas, Il., is closing at the end of the month after 95 years. Robson True Value , Sioux Falls, S.D., sustained minimal damage in a Dec. 26 fire at the rear of its building. The cause is under investigation. Woods Hardware has opened in the former site of Small’s Hardware, Cincinnati, Oh., after a full remodel of the two-story building. Sears will sell its Craftsman brand to Stanley Black & Decker, but continue to sell Craftsman products through a perpetual license deal. Habitat for Humanity relocated its St. Joseph, Mo., ReStore to a new location, which at 11,900 sq. ft. is twice the size of the old. 28

Building Products Digest

February 2017

Building-Products.com

An Open View to More Revenue

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JP Hart Building #6 in Texas J.P. Hart Lumber Co., San Antonio, Tx., broke ground on a new 30-acre facility in Sherman, Tx. The new location, Hart’s sixth in Texas, will employ up to 37 when it opens early this fall.

Novik Rebrands as Tando for Pro’s Novik, which last summer acquired Exteria Building Products, has combined the technologies and products of both companies into a new enterprise aimed at professionals—Tando Building Products. Its polymer exterior cladding lines are TandoShake and TandoStone. “Novik’s acquisition of Exteria presented an exciting opportunity to combine the innovations and assets of both brands,” said Tando president Ralph Bruno. “We’ve been calling it one plus one equals three… and that’s what Tando is all about, creating new exteriors for today’s dynamic market.”

SUPPLIER Briefs Guardian Building Products consolidated its Joplin, Mo., distribution center into its recently acquired Hawkeye Building Distributors facility in Joplin. The new DC is 48,000 sq. ft.—more than twice the size of its old warehouse. Biewer Lumber has begun production at its new sawmill in Newton, Ms.

Elliott Lumber Co., Roulette, Pa., suffered a Jan. 10 fire in the ventilation for its sawdust collection system. Woodgrain Millwork is building a $4-million wood fiber pellet mill at its Lenoir, N.C., moulding plant. The 15,000sq. ft. addition should be completed this spring. Harvey Building Products , Waltham, Ma., has acquired Soft-Lite Windows, Streetsboro, Oh. Beacon Roofing Supply, Herndon, Va., acquired BJ Supply, Bristol, Pa., from Joseph Pfluger, who stays on.

HOOD LUMBER

Boral Bricks, Roswell, Ga., and Forterra Brick , Charlotte, N.C., have spun off and merged their brick operations into a new joint venture, Meridian Brick, serving the U.S. and Canada. PGT Inc., North Venice, Fl., has been renamed PGT Innovations and transferred the listing of its common stock from NASDAQ to the New York Stock Exchange.

Mid-State Lumber, Warwick, N.Y., is now supplying MoistureShield composite decking to Connecticut, Massachusetts, Rhode Island, and New Hampshire. Silver Creek, MS

Metcalf, GA Waynesboro, MS Bogalusa, LA

Parksite has added expanded distribution of Wausau Siding Systems’ Diamond Kote prefinished products to its Louisville, Oh., and Baltimore, Md., DCs. Parksite has offered the option on LP SmartSide in New England since April. In addition, Parksite’s Fargo, N.D., is now marketing, fabricating and distributing the full line of Therma-Tru doors for the Minnesota marketplace.

DAP Products, Baltimore, Md., has acquired the foam division of Clayton Corp., Fenton, Mo., including its Touch ‘N Foam and Touch ‘N Seal brands.

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

Building Products Digest

February 2017

Huttig Building Products , St. Louis, Mo., was named Construction Marketing Association’s Midwest Marketer of the Year. James Hardie Building Products launched a new website for trade professionals—JamesHardiePros.com. Anniversaries: Belair Road Supply, Baltimore, Md., 100th … Liberty Hardwoods, Kansas City, Mo., 20th.

– Clarification – Beans Lumber, Upper Providence, Pa., lost its office and showroom in a Nov. 27 fire (BPD Jan., p. 24), but its shop and warehouse were saved, allowing the business to continue to operate.

Building-Products.com

THINKING Ahead By Sabrina Seccareccia, Gracious Living

Thinking inside the big box Tricky complications for wholesalers and manufacturers working with big box retailers

ETTING YOUR PRODUCT into a big box retailer can be a huge boon for your company. The potential for increased, consistent sales is appealing, but there are also plenty of challenges to consider before going into business with a large store.

Big Box Benefits The advantages of working with big box retailers are manifold. From a sales perspective, if you get a large initial order with reorder

About NAWLA NAWLA (North American Wholesale Lumber Association) is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.

Building Products Digest

potential, you will see a consistent profit throughout the year. In that scenario, you are always producing and selling, even in the off season. In the off season (winter), you are building inventory, and in the spring, summer and fall, you are constantly selling and shipping material. From a marketing perspective, working with a big box retailer can dramatically increase your brand awareness. When you pair with a large retailer, you have access to marketing tools such as: • Flyer programs – Your product and brand are readily available and

February 2017

promoted in flyers that are distributed in newspapers locally and potentially nationally. • Online presence – Once you land a product with a big box, they generally set you up on their website, creating more visibility for your product and brand in the consumer mind. • Social media – This is an increasingly important vehicle to gain brand awareness and consumer favor. When you are featured through a social media outlet, you are capturing even more consumer minds and positive brand recognition.

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A Special Series from North American Wholesale Lumber Association

Superstore Struggles

Final Thoughts

There are, of course, challenges to working with big box stores, chief among them pricing. As a manufacturer or producer of items being sold in a big box store, you need to always appeal to the buyers on a pricing level. If you can’t beat the existing price, generally you will not win the business. Another challenge is getting allocated retail space. The trend for big box retailers is to carry as little physical inventory as possible, so they push a special order or selling only online programs. These types of programs make it easier for stores to keep the least amount of inventory in stores but also allows them to have the product available to customers at any time. This is a challenge for manufacturers because these programs put the onus on the manufactures to package and ship items to store. This, in turn, drives up the cost of the product that we are trying to keep down to land the business in the first place. The best way to convince big box retailers to allocate space for your product is through showing sales history and displaying consumer demand. If your product has a couple years of sales history within that retailer and within others in the same market, it is easier to display customer demand through sales data. Showing concrete demand for the items you are attempting to allocate space for in store programs is very beneficial. As a general rule, big box retailers today are working to cut down the amount of SKUs stocked in store as costsaving measures. If you can present a limited, core product offering that is proven to be in demand in their markets, that display consistent sales growth year over year and show positive reordering data, it is usually a great start to further conversations. Further challenges occur after you’ve landed the big box business. Quality, service and marketing are always important, but once you start working the big box account is when you get to start showing your worth in these realms. However, you still need to be aware that price increases or shifts can very negatively affect your relationship, even if you rank high in quality, service and marketing. There are also times where, as a manufacturer, a term of selling with a particular retailer is that you must have your material distributed through a specific distributor. You may have your own functioning distribution channels but are required to work with someone new. There are growing pains with this, as you need to establish and define a new working relationship. But, in the end, working with a new team can always work to your advantage in growing your connections within the distribution field.

Ultimately, successfully working with a big box retailer comes down to your people who present and position your product, your customer service and support staff that work with the actual locations to offer the best service possible. Price is always a big factor in the game, but if your team manages to create a relationship with the people they interact with on a regular basis, no matter what level of the retailer they work for, it is an additional pull to keep them wanting working with you.

Building-Products.com

– Sabrina Seccareccia is marketing coordinator with Gracious Living Innovations, Mississauga, Ontario, and a member of NAWLA’s marketing committee.

What is the difference between a special order program and a stocking program? Stocking programs are programs that have physical inventoried product carried in the majority of retail locations. The stores house, merchandise, sell and reorder material to have fully stocked shelves where customers can walk in and buy the quantity that they need. Special order programs are where, mostly in hardware store environments, they have a contractor desk that takes and processes orders for individual customers. They place an order at that desk and the customer’s order is received in store within the next couple business days, depending on what the program offers. Some special order programs include a direct to site delivery option for loyal contractors who purchase a certain dollar amount of material. Each program appeals to a different consumer. For the do-it-yourself customer, they generally prefer being able to walk in the store and walk out with what they need. For contractors, on the other hand, it depends. If they require numerous types of material, along with accessories like fasteners or stains, they would likely benefit from the special order program. Those who just need a couple pieces to finish a job would prefer not to use the special order program where they have to wait a couple days to receive the product and buy right off the shelf. Both types of programs are beneficial for big box retailers to have. As a manufacturer, being able to service the stores with both types of programs is a definite advantage. However, a stocking program is always preferred over special order because it is much easier to forecast sales, production and shipping requirements. It also gives you greater visibility into purchase behavior and history.

February 2017

Building Products Digest

Overson Shutters Pair of Yards Overson Lumber Co., St. James, Mn., closed Westbrook Home Center, Westbrook, Mn., and Overson Building Center, Sleepy Eye, Mn., on Dec. 30. General manager Mark Wright attributed the closures to declining sales. The stores’ inventories were moved to other locations.

JLC Live NE Booth #1211

Twister Strikes Florida Ace An early morning tornado Jan. 20 caused extensive damage to Ace Home Helpers, Panama City Beach, Fl. According to owner Stephen Smith, luckily the store was closed and there were no employees or customers on hand. Most of the damage occurred in an open area where plants and garden supplies are kept, but the building itself sustained some damage, including a number of glass doors that were blown out.

Inteplast Rescues Gossen

BECK Fastener Group® and FASCO America® are registered trademarks of the BECK Fasttener Group. Group

Inteplast Group has purchased fellow PVC building products manufacturer Gossen Corp., Glendale, Wi., for $5.5 million at a bankruptcy auction. Gossen, which was founded in 1928, filed for bankruptcy in November, closing its facilities in Glendale and Cartersville, Ga. Inteplast expected to have workers back on the job before the end of the year. Inteplast president Dr. John Young said that the acquistion complements the group’s World-Pak division, which also produces PVC decking, moulding and trim.

AIR DRIVEN N TOOLS A marvel of continua al reﬁnement and evolution, the high performance raange of FASCO® brand staplers, nailers and specialty tools combine distinctive style with speed, agility and endurance e .

SC Retailer Opening New Ace Four months after Randy Austin closed his nine-yearold Ace Hardware in Greenville, S.C., a company owned by his wife, Coralyn, is building a new 13,000-sq. ft. store. The new CJ’s Ace Hardware is expected to open this spring. The old building and its leaky roof reportedly had to be abandoned due to safety concerns.

Weyerhaeuser Upgrades PSL Weyerhaeuser has upgraded its Trus Joist Eastern Parallam PSL beams and columns with a new unique exterior coating. The patent-pending proprietary surface modification technology reduces the rate of moisture absorption during yarding and construction, and delays the effects of UV penetration. “The new coating is uniformly sprayed on to both the narrow edge and wide face of Eastern Parallam PSL at our manufacturing facility and chemically modifies the outside wood surface of the beam or column,” said Barry Viviano, engineered lumber products regional manager in New England. “The protective surface covering resists thickness swell from exposure to both moisture and UV conditions during construction.” Manufactured in Buckhannon, W.V., the product is available east of the Mississippi River, and is intended for interior use applications, such as open concept floor plans.

MiTek Opens Atlanta DC MiTek has opened a new 45,600-sq. ft. facility in Atlanta, Ga., to warehouse and distribute MiTek truss plates and USP epoxy, connectors and fasteners. Fully functional on Feb. 1, the new facility serves a 500mile radius. It’s the third warehouse opened by MiTek in the past 13 months, joining DCs in New Jersey, Florida, Indianapolis, Minnesota, Houston, Phoenix and California.

Building Products Digest

February 2017

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MOVERS & Shakers Steve Banahan was promoted to pine sales mgr. for the two eastern white pine mills of Pleasant River Lumber, Dover-Foxcroft, Me. Tom Hussa has been named president of Viance, Charlotte, N.C. Rod Bedard, ex-Chace Building Supply, is new to AERT, as Hartford, Ct.-based New England territory mgr. for MoistureShield decking and railing. Steve Brady, ex-84 Lumber, has rejoined Builders FirstSource/ ProBuild, East Hartford, Ct., as senior sales rep. Rudy Gonzalez has been promoted to store mgr. of McCoy’s Building Supply, Rio Grande City, Tx. Walt Stasinchak, ex-Velux, is new to Tapco, as business development mgr. for New York. Dan Fryz, ex-National Industrial Lumber Co., is now industrial sales mgr. with Universal Forest Products, Parker, Pa., covering Pennsylvania, West Virginia, and Ohio. Christopher Mantay has hired on at Detroit Forest Products, Westland, Mi., as director of operations. Mike Brown, store mgr., Home Depot, Nashville, Tn., has transferred to lead the Spring Hill, Tn., branch. Kara Skarphol, ex-Lampert Lumber, has joined the outside sales team at Casselton Lumber, Fargo, N.D.

Jared Verbois, 84 Lumber, Baton Rouge, La., has transferred to Gulfport, Ms., as co-mgr. Josh Arrowood, ex-SPEC Building Materials, is new to outside sales with 84 in Plant City, Fl. Michael McGaugh, ex-Dow, will join BMC Stock Holdings, Atlanta, Ga., Feb. 20, as chief operating officer. Toby Brundage, ex-Carter Lumber, is a new structural specialist for BMC in Charlotte, N.C. Tracie Happel is now a customer service and sales rep with Yoder’s Building Supply, Fair Play, S.C. Marshall Croom has been promoted to CFO for Lowe’s, Mooresville, N.C., replacing Robert Hull Jr., who has retired after 17 years with the chain. Mark Cunningham is now store mgr. in Indiana, Pa. Dustin Smith, ex-Lowe’s, has moved to Oldcastle, Atlanta, Ga., as a category mgr. based near Charlotte, N.C. Jerry Laske is new to sales at Metro Hardwoods, Maple Grove, Mn. Rick Whitson, VP-distribution, Ace Hardware Corp., Oak Brook, Il., has retired after 37 years with the co-op. Angela Cooper is new to Wimsatt Building Materials, Lansing, Mi., as an inside sales account mgr. Michael Caputo, ex-TimberTech, has joined Feeney as western regional sales mgr., based in Oakland, Ca.

BUSY AT 90: Lezzer Lumber, Curwensville, Pa., is planning a series of contractor shows, open houses, and other exciting events throughout 2017 at many of its locations in conjunction with its 90th anniversary. Founded in 1927, Lezzer has grown to include 11 retail stores, a truss manufacturing facility, three commercial door locations, and 425 employees.

Building Products Digest

February 2017

Rich Thompson, ABC Supply, Beloit, Wi., has been promoted to director of national business development. Larry St. Cyr, ex-Northeast Wholesale, has moved to PrimeSource Building Products, as a field service rep in West Bridgewater, Ma. David Venezian, Allied Building Products, has been promoted to branch mgr. over locations in Jamaica and Ozone Park, N.Y. John Haines has retired after 40 years in the industry, the last 38 with Allied Midwest Merchandisers, Sioux Falls, S.D. Rene Polanco, ex-L&W Supply, has joined the sales force at Foundation Building Materials, Hialeah, Fl. Vincent J. Morales has been named senior vice president and chief financial officer for PPG, Pittsburgh, Pa., effective March 1. As CFO, he succeeds Frank S. Sklarsky, who is retiring. Derek Kulwicki has moved to the interior finishing team at Sika Corp., Lyndhurst, N.J., as sales representative for Florida. Joan Shafnacker, ex-Panolam, has moved to Atlantic Plywood Corp., Woburn, Ma., as architectural specification rep for New England. David Mullins, Tek-Rail, Newnan, Ga., has been promoted to VP. Shane Bordas, ex-James Hardie, is now Orlando-based Southeast territory mgr. for CertainTeed’s gypsum division, covering Florida, Georgia and South Carolina. Kirk Urick has joined Westlake Ace Hardware, Lenexa, Ks., as commerical LED lighting project mgr. Paul B. Bieber has been appointed VP of sales for Sto Corp., Atlanta, Ga. Patrick S. Tasson is now sales representative for Southern California/western coatings mgr. David Jennings is now retail support mgr. at Ace Hardware, West Jefferson, Oh. Andrew “Andy” Dodson has joined the American Wood Council, Washington, D.C., as VP-government affairs. Jason Varney, star of DIY Network’s Docked Out, has signed an exclusive multi-year endorsement deal to represent Armadillo composite decking. Ophelia Payne is providing therapy services to workers at at MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus. Building-Products.com

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Building Products Digest

February 2017

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Strong-Tie Picks Up BIM Firm Simpson Strong-Tie, Pleasanton, Ca., has purchased CG Visions, Inc., Lafayette, In., which providing BIM (Building Information Modeling) technology, services and consultation to the residential building industry. CG Visions was started in 2000 by David Bozell, a professor in the Department of Computer Graphics at Purdue University. From 2000-2002, Bozell brought in three other partners, Cory Shively, Scott Schultz and Tim Beckman, to bring new ideas and experience in the digital media and construction fields. The team developed its own BIM and estimation tools and serves national mid-sized to large production builders in the Top 100. Its 75 employees will remain at CG Visions’ headquarters in Indiana.

Remodeling Keeps Growing The coming year is expected to see sustained momentum in home remodeling and repair spending, according to the latest Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Annual growth in home improvement and repair expenditures is projected to remain elevated throughout 2017 with spending levels ending the year up 6.7% at $317 billion, on par with the 6.9% growth estimated for 2016. “Growth in home prices is continuing at a healthy pace and encouraging

homeowners to make remodeling investments,” said Chris Herbert, managing director of the Joint Center for Housing Studies. “Home sales are remaining on an upward trajectory, as well, and this coupled with continued

growth in remodeling permit activity suggests another strong year for home improvements.” Analyst Abbe Will said, “Although above-average growth is expected this year, we’ve lowered our projection for market size somewhat with the recent release of new benchmark data from the American Housing Survey. Spending in 2014 and 2015 was not quite as robust as our LIRA model estimated, growing 11.3% over these two years compared to 14.3% as estimated.”

MiTek Buys DIY Technologies MiTek Industries, Chesterfield, Mo., has acquired home improvement software developer DIY Technologies, Tucson, Az. Michael Heisler, CEO and founder of DIY, said, “This acquisition is the culmination of more than 10 years of successful partnering with MiTek. I am excited that DIY and all our employees have joined the MiTek and Berkshire Hathaway family.” Founded in 1998, DIY provides web-based software focused on do-ityourself home improvement projects, including decking, fencing and other outside living projects. Building-Products.com

February 2017

Building Products Digest

Big buzz at IBS year offered more hands-on, interactive learning opportunities, such as the new Builder Clinics and Tech Bytes sessions, the CEDIA Smart Home Pavilion, NAHB Meeting of the Members, and an inside look at how high performance works at the new Building Performance Lab. During the show, Regal Ideas Inc. won the Best of IBS Award for Most Innovative Building Product, for its aluminum railing incorporating LED lighting.

Other award winners included Outdeco USA’s decorative garden screens (Best Outdoor Living Product), Andersen’s MultiGlide Door (Best Window & Door Product), and Biorev’s Biorev 360 virtual reality apps for home tours and floor plans (Best Home Technology Product). Over 400 entries were submitted in nine categories. Next year’s International Builders’ Show returns to Orlando Jan. 9-11, 2018.

Photos by BPD

IBS

The palpably electric atmosphere at NAHB’s recent 2017 International Builders Show in Orlando gives high hopes for booming construction and building material markets throughout the year. The show welcomed approximately 80,000 attendees from 100 countries, who packed aisles and exhibits sponsored by more than 1,500 manufacturers and suppliers spanning 569,000 sq. ft. of floor space. First-time IBS experiences this

IBS ATTENDEES: [1] Andrew Ellis, John McMahon, Tom Ellerbrook, Anthony DiSanto, Gavin Pedrothy, Dustyn Brown, Katie Mozeleski. [2] Michelle Von Hatten, Doug McNeill. [3] Phil Lail, Bill Albertson. [4] Chris Wishmann, Joe Boscariol, Greg Bates. [5] Eric Gee, Jay Poppe. [6] Len

Building Products Digest

February 2017

Kasperski, Kim Pohl, Frank Peterson. [7] Jon Whorley, Scott Marshall. [8] Kent Marks, Brett Shuler. [9] Jeremy Back, Michael Hartman, Jim Van Pelt, Dave Andrews, Bill Stoker. [10] Jeff Osborne, Bill Poulin. (More photos on next page) Building-Products.com

IBS Photos by BPD

BUILDING PRODUCT manufacturers (continued from previous page) integrated their products into their exhibits, including [11] a pergola and swing built with Simpson Strong-Tie connectors, [12] a bench and table made of Weyerhaeuserâ&#x20AC;&#x2122;s Timberstrand LSL, and [13] Roseburgâ&#x20AC;&#x2122;s entire engineered wood-filled booth. [14] Scott Aslinger, Carolyn Atkinson, Glyn Boone. [15] Becky Duffy. [16] Jeff Epstein, George Worley, David Elenbaum. Building-Products.com

[17] William Van Sickle, Nadine Sizemore, Jason Lamers. [18] Gary Wesson, Dan Hagedorn, Jim Miller. [19] Mike Schwartz, Corey McCarthy, Mathew Hungerford. [20] David Campbell. [21] Butch Bernhardt, Frank Stewart. [22] Scott Rolfus, James Webb, Tom Hobbis. [23] Ken Scott, Ted Whitehouse. [24] Jeff Easterling, Richard Wallace. [25] Bryan & June Strickland. (More photos on next page) February 2017

Building Products Digest

IBS Photos by BPD

IBS SNAPSHOTS (continued from previous page): [26] Feeney rolled out a colorful line of railings. [27] CAMO held a â&#x20AC;&#x153;Screw Offâ&#x20AC;? deck fastening competition. [28] Tando Building Products made its debut at the show, launched by Novik. [29] Combilift displayed its next-level material handler. [30] Nova had a wide range of exotic hardwood decking samples on hand. [31] NewTechWood featured its UltraShield wall cladding

Building Products Digest

February 2017

and exterior decking. [32] Northeastern Lumber Manufacturers Association, Southern Forest Products Association, Southeastern Lumber Manufacturers Association, Western Wood Products Association, Western Red Cedar Lumber Association, and Western Wood Preservers Institute joined forces to promote real wood.

Building-Products.com

NEW Products

High-Tech Composite Deck Relax Decking by Fiberon is a strong, durable deck board that is designed to outperform wood or uncapped composites. The new class of decking material uses Rise Technology, a patented process, that fuses synthetic fibers for unbeatable strength and durability. The decking line is easy to cut and install, and goes where wood canâ&#x20AC;&#x2122;tâ&#x20AC;&#x201D;including ground applications and marine environments.

Plygem has launched its Steel Siding Collection, which combines the benefits and strength of galvanized steel color-matching solutions. The line offers distributors, professionals and homeowners industry leading performance, design and speed of installation.

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Smart Vertical Siding The new LP SmartSide Vertical Siding product by LP Building Products is a treated engineered wood strand substrate with rich shadow lines and cedargrain texture. The panel is a no-groove square edge that measures 3/8 inches by 16 in. by 16 ft. The 16-ft. length eliminates unsightly horizontal joints. This panel is most typically used with LP SmartSide 4/4-inch by 2.5-inch trim in board-and-batten applications.

n LPBUILDINGPRODUCTS.COM (888) 820-0325

Building Products Digest

February 2017

Building-Products.com

Shake It Up A specialty line of TandoShake has been introduced by Tando Building Products manufactured with SignatureStain, a technology that imparts a true semi-transparent stain for a heightened level of realism. In addition to looking just like stained wood, SignatureStain has a proprietary UV protection that offers an industry leading warranty. It comes in six colors.

n TANDOBP.COM (888) 847-8057

Next-Gen Batteries Bosch’s CORE18V power tool batteries use lithium-ion technology to deliver 80% more power than its previous batteries. High-powered cells are laserwelded and rail-connected for higher efficiency.

n BOSCHTOOLS.COM (877) 267-2499

Track Your Tools The TICK by Milwaukee Tool is a professional-grade Bluetooth tool and equipment tracker. Designed to withstand harsh jobsite environments, it can be easily attached and hidden from sight on any product, regardless of brand, to track anything in one’s inventory through the company’s One-Key app.

n MILWAUKEETOOL.COM (800) 729-3878

Building Products Digest

February 2017

Building-Products.com

Measure It Out Empire Level has upgraded its tape measure lineup to introduce a new series of Autolock and Chrome Tape Measures that offer best-in-class performance in the key areas of durability and functionality. The devices feature a nylon-coated blade to resist abrasion and jobsite contamination.

n EMPIRELEVEL.COM (866) 375-6287

Doors to Beauty

Design Your Deck AZEK Deck Designer helps both homeowners and contractors visualize their dream decks before starting the construction. The web tool helps viewers cre-

Building Products Digest

ate, revise and save as many interactive designs as they want before making a final purchase decision.

n AZEK.COM

(877) 275-2935

Masonite’s new Heritage Series of fiberglass entry doors features authentic Craftsman architectural details. The three-panel exterior doors complement the popular Heritage Winslow interior doors, completing the look for a whole home solution. The door is available in threepanel door in 6’8” and 8’ heights, and features an optional dentil shelf. It also features architecturally correct detailing to reflect the look of a real wood cottage or bungalow inspired door design.

n MASONITE.COM (800) 663-3667

February 2017

Building-Products.com

Reserve your rooms early! Hotel sold out in 2016. Be sure to REGISTER before March 14 for early savings â&#x20AC;&#x201C; find all forms at www.lat.org

ASSOCIATION Update Northeast Window & Door Association agreed to merge with Window & Door Manufacturers Association, with NWDA members becoming part of newly formed WDMA-Northeast. Midwest Building Suppliers Association is staging blueprint reading & material take-off courses Feb. 28-March 1 at Indiana University, Bloomington, In., and March 2-3 at Michigan State University, East Lansing, Mi. Lumbermen’s Association of Texas and Louisiana will host its afternoon legislative executive committee meeting March 1 at the Westin Riverwalk Hotel, San Antonio, Tx. Gaylord Texan Resort, Grapevine, Tx., is the destination for LAT’s annual convention and buying show April 4-6. Speakers include custom builder Matt Risinger and Dallas Federal Reserve’s Laila Assanie, with a home construction forecast. Building Material Suppliers Association will hold an installed sales roundtable March 1-2, followed by a CFO roundtable March 22-24 in Nashville, Tn. Northeastern Retail Lumber Association is gearing up for its annual LBM expo Feb. 15-17 at Rhode Island Convention Center, Providence, R.I. Hundreds of vendors will show-

Building Products Digest

case the latest products, and three educational events will address the current issues the industry may be facing now and down the road. Steve Cucchiaro, president of 3Edge Asset Management, will share his take on the global capital markets. In addition, a panel of experts known for their success in attracting, engaging, and retaining retail talent will share tips with attendees. At the new Futuristic Friday breakfast event, Doug Stephens, the Retail Prophet, will talk about the practically unforeseeable changes coming to the retail world and how the industry can be ahead of them. On the second day of the expo, Northeastern Young Lumber Execs will induct incoming president Mike Duval and celebrate its 30th anniversary during its annual meeting. There they will honor the 2017 CHIPs and Redwood Award recipients. Among NRLA affiliates, New Hampshire Retail Lumber Association is sponsoring an introduction to building materials course Feb. 20, a basic/beginner blueprint material and estimating course Feb. 23, and an advanced workshop Feb. 23-24, all at Ricci Lumber, Portsmouth, N.H. The courses will be repeated Feb. 27-March 3 at NRLA headquarters in Rensselaer, N.Y., with an intermediate class offered by Rhode Island Lumber & Building Material Dealers March 7 at New England Institute of

February 2017

Technology, East Greenwich, R.I. Northern New York Lumber Dealers Association stages its 2017 Product College Feb. 28 at Canton Best Western, Canton, N.Y.; March 1 at Ramada, Watertown, N.Y.; and in conjunction with Central New York Retail Lumber Dealers March 2 at Sheraton Syracuse University Hotel, Syracuse, N.Y. Lumber Dealers of Connecticut puts on the Product College March 14 at Holiday Inn, East Hartford, Ct. Northwestern Lumber Association’s Iowa Lumber Convention will take place Feb. 21 at Prairie Meadows, Altoona, Ia. On the agenda are Larry Mersereau addressing “Stand Out! Differentiate or Disappear;” Mike Parker on “Charging the Human Battery with Lasting Inspiration;” and a student panel career session. NLA is also getting ready for its Nebraska convention March 7-8 at Younes Conference Center, Kearney, Ne. After the membership meeting lunch, Curtis Tomazevicz will deliver a keynote titled “Have No Fear.” Mid-America Lumbermen’s Association has started the year off with its new slate of officers. Chris Cleaver, Cleaver Farm & Home, Chanute, Ks., is the new president, succeeding Jim Bishop, Vesta Lee Lumber, Bonner Springs, Ks. First VP is Adam Hendrix, Chic Lumber & Hardware, St. Peters, Mo.; 2nd VP Hatch McCray, McCray Lumber & Millwork, Kansas City, Ks.; 3rd VP Matt Graham, Miltonvale Lumber, Miltonvale, Ks.; NLBMDA delegate Greg Smith, E.C. Barton, Jonesboro, Ar.; and secretary/treasurer Dan Prendergast, Moscow Mills Lumber, Moscow Mills, Mo. The leadership also includes directors Landon Garner, Garner Building Supply, Rogers, Ar.; and Ray Mueller, Clark Lumber Do it Center, Herrington, Ks.; regional reps Brandie Killian, John Plyler Home Center, Glenwood, Ar.; Darrell Derstler, Derstler Lumber, Richmond, Mo.; and Gary Smith, Smith & Sons Building Center, Anadarko, Ok.; and associate directors Terry Parker, PrimeSource Building Products, Springfield, Mo.; Don Rieger, Hiab USA, St. Louis, Mo.; and Nate Wedermyer, Dealers Choice Distribution, Topeka, Ks. MLA is reminding its Arkansas members to save the date for its winter meeting on Feb. 21. Building-Products.com

North American Wholesale Lumber Association’s new officers and board officially began their terms Jan. 1, led by chairman Jim McGinnis, McGinnis Lumber Co., Meridian, Ms. He is joined by 1st vice chair Nick Fitzgerald, Building Products, Inc., 2nd vice chair David Bernstein, MidState Lumber; secretary/treasurer Rob Latham, Tri-State Forest Products; and immediate past chair Scott Elston, Forest City Trading Group. Directors include Bethany Doss, Capital Lumber; Phil Duke, Lumberman’s Wholesale Distribution; Heath Hutchison, Hutchison Lumber & Building Products; Mary Jo Nyblad, Boise Cascade; Paul Owen, Vanport International; Bill Price, All Star Forest Products; Warren Reeves, Wholesale Wood Products; Alden Robbins, Robbins Lumber; Dan Semsak, Pacific Woodtech Corp.; D. Wayne Trousdale, Cedar Creek; Mark Wells, UFP Purchasing; and Donna Whitaker, Interfor. NAWLA is compiling the list of speakers for its 2017 Leadership Summit March 12-14 at the Westin La Paloma Resort & Spa in Tucson, Az. Presenters include Jim Cline, president and CEO of Trex; Nick Arkle, CEO of

Gorman Brothers; Dick Molpus, founder and president of The Molpus Woodlands Group; and, Claudia St. John, president of Affinity HR Group. The program will also include a “Legends of Lumber” panel featuring Steve Boyd, president/CEO of Manufacturers Reserve Supply; Steve Weekes, founder of Weekes Forest Products; Steve Killgore, VP of solid wood business for Roseburg; and moderator Grant Phillips, lumber & industrial product sales for Collins. Other fast-approaching NAWLA events are the Northeast regional meeting Feb. 14 in Providence, R.I.; its University of Innovative Distribution March 5-8 at JW Marriott, Indianapolis, In.; and Wood Basics Course March 6-9 at Mississippi State University, Starkville, Ms.

Southern Lumber Manufacturers Association and Southern Forest Products Association will co-host another joint spring meeting & expo at Hotel Monteleone, New Orleans, La. On the first day, guests will enjoy SLMA Night at The Napoleon House and all proceeds support Southern Pine Awareness Network’s Wood. It’s Real program. Appalachian Hardwood Manufacturers Association’s annual meeting is set for March 1-5 at The Diplomat, Hollywood, Fl. Southern Pine Inspection Bureau is preparing for a pair of multi-day planer operator courses. The first will be held March 30-April 1 at Morgan Lumber Co., Red Oak, Va., taught by Hendal Price. The second, led by Harry Meadows, will be April 4-5 at the Hampton Inn, Troy, Al.

National Lumber & Building Material Dealers Association’s spring meeting and legislative conference will take place March 27-29 in Washington, D.C. According to the group, “This conference is an incredible opportunity to remind leaders of the importance of our industry and advance the advocacy agenda of NLBMDA.”

International Order of Hoo-Hoo elected Robyn Roose Beckett of M.C. Gutherie, Livonia, Mi., Snark of the Universe, making her the second female in club history to take over the Snark’s desk. Pieter Verlinden is now 1st VP and Kent Bond remains chair.

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February 2017

Building Products Digest

DATE Book

Peak Auctioneering – Feb. 25, LBM auction, Howard County Fairgrounds, Baltimore, Md.; www.peakauction.com.

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

Midwest Building Suppliers Association – Feb. 28-March 1, blueprint reading & material take-off courses, Bloomington, In.; March 2-3, East Lansing, Mi.; www.thembsa.org.

South Dakota Retail Lumerman’s Assn. – Feb. 7-8, convention, Best Western Plus Ramkota, Sioux Falls, S.D.; www.nlassn.org.

IDEAS Trade Show – March 1, King of Prussia, Pa.; www.ebmda.org.

Indiana Hardwood Lumbermen’s Assn. – Feb. 8-9, convention & expo, Marriott Downtown, Indianapolis, In.; www.ihla.org.

Lumbermen’s Assn. of Texas & Louisiana – March 1, legislative committee meeting, San Antonio, Tx.; www.lat.org.

Mississippi Lumber Manufacturers Association – Feb. 9-10, annual meeting, Jackson, Ms.; (601) 856-8465; www.mlmalumber.com.

Northwestern Lumber Association – March 1, workshop, Country Inn & Suites South, Rochester, Mn.; (707) 621-0485; www.nrla.org.

Richmond International Forest Products – Feb. 10, women’s leadership workshop, Richmond, Va.; linda.hull@rifp.com.

Appalachian Hardwood Manufacturers Assn. – March 1-5, annual meeting, Hollywood, Fl.; www.appalachianwood.org.

Florida Hardware Co. – Feb. 11, market, Doubletree Convention Center, Orlando, Fl.; (800) 372-2110; www.floridahardware.com.

Peak Auctioneering – March 4, LBM auction, Meadow Event Park, Richmond, Va.; (800) 245-9690; www.peakauction.com.

Monroe Hardware Co. – Feb. 12, dealer market, Cabarrus Arena, Concord, N.C.; (800) 222-1974; www.monroehardware.com.

North American Wholesale Lumber Assn. – March 5-8, University of Innovative Distribution, Indianapolis, In.; March 6-9, Wood Basics Course, Starkville, Ms.; (312) 321-5133; www.nawla.org.

North American Wholesale Lumber Association – Feb. 14, regional meeting, Providence, R.I.; (800) 527-8258; www.nawla.org.

Greenprints – March 7-8, Atlanta, Ga.; www.greenprints.org.

Northeastern Retail Lumber Assn. – Feb. 15-17, annual LBM expo, Rhode Island Convention Center, Providence, R.I.; www.nrla.org.

Northwestern Lumber Association – March 7-8, Nebraska lumber dealers convention, Kearney, Ne.; www.nlassn.org.

Orgill Inc. – Feb. 16-18, dealer market, Ernest N. Morial Convention Center, New Orleans, La.; (800) 347-2860; www.orgill.com.

LMC – March 8-10, annual meeting, New Orleans, La.; www.lmc.net.

True Value – Feb. 17-19, spring reunion market, Anaheim, Ca.; (305) 852-6126 www.truevalue.com. Northwestern Lumberman’s Association – Feb. 20-21, Iowa lumber convention, Prairie Meadows, Altoona, Ia.; www.nlassn.org.

National Frame Building Assn. – March 8-10, frame building expo, Nashville, Tn.; (800) 726-9966; www.nfba.org. National Wooden Pallet & Container Assn. – March 8-10, leadership conference & expo, Tucson, Az.; www.palletcentral.com.

Kentucky Forest Industries Association – Feb. 20-24, lumber grading course, Liberty, Ky.; www.kfia.org.

Southern Forest Products Association/Southeastern Lumber Manufacturers Association – March 8-10, spring meeting & expo, Hotel Monteleone, New Orleans, La.; www.sfpa.org.

Mid-America Lumbermens Association – Feb. 21, Arkansas winter meeting; (800) 747-6529; www.themla.com.

North American Wholesale Lumber Assn. – March 12-14, Leadership Summit, Westin La Paloma, Tucson, Az.; www.nawla.org.

Building Products Digest

February 2017

Building-Products.com

Join top industryy decision makers for insigghts to grow your business, your knowledge and your network.

MARCH 12-14

Westin La Paloma Resort & Spa Tucson, ucson AZ

Conﬁrmed presenters and sessions includee: • Jim Cline, President and CEO of Trrex Company • Dick Molpus, President of The Molpus Woodlands Group • Claudia St. John, Afﬁnity HR Group • “Legends of Lumber” Panel Leaders from across the forest products industry – including retailers buying groups retailers, groups, jobbers and otherrs across the supply chain – are inviteed to attend this NAWLA eevent!

Registration is Open! To learn more and register, visit www.nawla.org/leeadershipsummit

US Fence Teams with Binford U.S. Fence Solutions Co. has invested in and recapitalized fencing distributor Binford Supply, Dallas, Tx., in partnership with Binford president/owner Steve Stanley. Binford was founded in 1950 and purchased in 2005 by Stanley. It has over 100 employees across eight locations in

Texas and Oklahoma, primarily serving residential and commercial fencing contractors. U.S. Fence, a portfolio company of private growth equity investment firm Building Industry Partners, continues to seek additional fencing businesses nationwide to partner with, invest in, or acquire.

CLASSIFIED Marketplace 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. Checks payable to 526 Media Group. Deadline: 18th of previous month. Questions? Call (714) 486-2735.

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ADVERTISERS Index

Allura [www.allurausa.com]

Anthony Forest Products [www.anthonyforest.com]

Lonza [www.lonza.com]

Boise Cascade [www.bcewp.com]

Lumbermens Association of Texas & Louisiana [lat.org]

Boral USA [www.boralamerica.com]

Masisa [www.masisa.com]

Clearspan [www.clearspan.com]

Matthews Marking Products [www.matthewsmarking.com]

Coastal Plywood [www.coastalplywood.com]

NewTechWood [www.newtechwood.com]

Cox Industries [www.coxwood.com]

Norbord [www.norbord.com]

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

North American Wholesale Lumber Assn. [www.nawla.org]

CT Darnell Construction [www.ct-darnell.com]

REA Jet [www.rea-jet.com]

Deckorators [www.deckorators.com]

Redwood Empire [www.redwoodemp.com]

Everwood Treatment Co. [www.everwoodtreatment.com]

RISI [www.risiinfo.com]

Fasco America [www.fascoamerica.com]

Roseburg Forest Products [www.roseburg.com]

Feeney [www.feeneyinc.com]

RoyOMartin [www.royomartin.com]

Green Bay Decking [www.greenbaydecking.com]

Simpson Strong-Tie [www.strongtie.com]

Hood Industries [www.hoodindustries.com]

Siskiyou Forest Products [siskiyouforestproducts.com]

Cover I 50-51

Cover II

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

Cover III

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

Koppers [koppersperformancechemicals.com]

Cover IV

Universal Forest Products [www.ufpedge.com]

Viance [www.treatedwood.com]

Leonard Lumber [www.leonardlumber.com]

Building Products Digest

February 2017

Building-Products.com

IN Memoriam Joseph Woolmer Trickett III, 89, and John F. Trickett, 86, former operators of Llanerch Lumber & Coal Co., Upper Darby, Pa., died two weeks apart. Joseph, who passed Jan. 11, joined his father’s lumber company after graduating from Lafayette College, taking off two years to serve in the U.S. Air Force. When the company was sold, he worked in insurance until his retirement. Hi brother John, who died Dec. 27, joined the firm after serving in the U.S. Navy. He would stay in the lumber business until 2012, when he was forced to retire due to Alzheimer’s. Lester Daniel Waters, 84, former co-owner of Davis Lumber & Supply, Maryville, Tn., died Dec. 14. Before retiring, he later worked for Alcoa. James Thomas McCain, 90, retired partner in Coats-McCain Lumber Co., Tyler, Tx., died Jan. 18. After serving in the U.S. Navy during World War II, where he witnessed the raising of the flag at Iwo Jima, he completed his degree at the University of Texas. He then joined the family business, retiring in 1998. James Latta Cranford, longtime owner of Cranford Lumber, Columbia, Tn., passed away Dec. 24 at age 104. Richard J. “Rich” Severance, 55, hardware store manager of Howe Lumber Co., North Brookfield, Ma., for 28 years, died Jan. 9. Bernard “Bernie” Clark, 81, longtime employee of Lacillade Lumber Co., Williamstown, Vt., died Dec. 31. After his discharge from the Army in 1958, he spent two years with Flint Lumber, Barre, Vt. In 1963, he began his 34-year career with Lacillade, moving from driver to shipping dispatcher and ultimately a window and door specialist, before retiring in 1997. Walter Sellick, 98, founder of Sellick Equipment, Harrow, Ontario, Canada, died Jan. 10. After serving in the Royal Canadian Air Force during World War II, he managed a Ford tractor dealership for many years until Jan. 1, 1969, when he and his sons Howard and David established Sellick Equipment Ltd. to manufacture rough terrain forklifts. Building-Products.com

February 2017

Building Products Digest

FLASHBack 65 Years Ago This Month

oming off a banner year for lumber production, manufacturers were a touch nervous heading into 1952 due to a revival of Depression-era regulations this time aimed to serve the war effort in Korea, as reported by the February 1952 issue of Building Products Digest’s sister publication, The California Lumber Merchant. The Federal Housing Administration mandated that no more than 800,000 new home and apartment units could be built in 1952, with the promise that “builders keep a tight rein on the use of scarce materials.” The cap was actually a compromise with the construction industry, which had balked at an earlier proposal of 660,000 units. The higher figure still represented a 22% cut from the 1.09 million starts in 1951. The government also told builders that 200,000 of the new starts had to be in defense areas where housing was critically short. FHA administrator Raymond M. Foley said builders would need to “exercise much self discipline” in order to stay within the limit. In addition, since plwood and veneer were in such high demand in marine construction, for electronics

WESTERN HARDWOOD Lumber Co., Los Angeles, Ca., promoted FlintkoteCanec’s Decotone insulating tiles on the cover of the February 1952 issue of The Merchant.

components, and by other “war industries,” the Office of Price Stabilization instituted price ceilings on direct mill sales of standard grades and dimensions of softwood plywood and Douglas fir veneer. The government was also limiting construction of stores, churches, office buildings, and other projects that consumed large amounts of structural steel. Also reported 65 years ago: • Olympic Stained Products Co. of Seattle, Wa., promoted several sales managers, enlarged its sales force, and added wholesale distributors in its quest to finally ensure complete national distribution of its products. Since its inception in 1934, Olympic had become pioneers in the pre-stained shake industry, but still lacked reach into some pockets outside the West. It vowed that by the end of 1952, every lumber dealer in America would have access to Olympic stained products. • To promote its waterproof wallboard, The Upson Co., Lockport, N.Y., built a 9-ft. rowboat out of the fiberboard panels. A pretty model then climbed into the craft and was launched on to Lake Ontario. Fortunately, the boat actually floated—to the relief of its passenger, who didn’t know how to swim. Upson later warned that it did not recommend using the panels in this manner.

LBM CONGLOMERATE The Wood Conversion Co., St. Paul, Mn., produced a full-color film to boost sales of building materials, particularly its Balsam-Wool and Nu-Wood insulation lines. Lumber dealers could book local showings of Make Room for Tomorrow to show to their contractor customers and yard personnel, just as they had for their earlier blockbuster, The Professor Was a Salesman, produced in conjunction with the Insulation Board Institute.

Building Products Digest

February 2017

• Cashing in on the Philippine mahogany craze, International Veneer & Plywood Corp. introduced manufacturing of the product to the Southwest, by opening a two-acre plant at a new industrial park near the Los Angeles International Airport. The facility would produce over 1 million sq. ft. of Philippine and African plywood and an equal amount of veneer each month. Today, the distinctive domed-shaped factory is home to global shipper Able Freight. • The Woodwork Institute of California held its first anniversary meeting at the San Francisco Yacht Club. Between business sessions, the 79 attendees were entertained by Poogi-Poogi the Magician.

Building-Products.com

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

Change Service Requested

Visit kopperspc.com to download the Koppers Treated Wood End Use Guide. 18 19

5 8

9 15

2 3 4 5

High Level Deck Boards Railings & Accessories Fence Boards and Rails Trellis Lattice

ABOVE GROUND 1

GROUND CONTACT

Ground Contact treated wood can be used in Above Ground applications. 10

Ground Level Deck Stair Stringers Ledger Boards

Post Supports

6 7

Joists* Beams* Planter Boxes

Fence Posts

Retaining Walls Playset Structures Ground Level Walkway

Raised Garden Bed

19 20

Fresh Water Bulk Head Fresh Water Dock Fresh Water Dock Posts Floating Dock (Decking, Joists, Beams)

* When treated wood is used in an above ground application where the treated wood component would be considered difficult to maintain, repair or replace and that component is critical to the performance and safety of the structure.

ÂŠ Koppers 1/2017