#1 Inventory Management Profit Strategy:

Stock No More Than Needed to Properly Service Demand

This practice is crucial to profitability. Here’s why: n Every day that excess inventory is owned, it is either costing interest on borrowed money, which increases expense, or it is preventing the earning of interest on owned money, which decreases income. Whether capital is borrowed or owned, excess inventory is always eroding profitability. n Let’s say a yard has sales volume of 110,000 BF/month. If brought in all at once by car, the inventory can turn once a month if needs are correctly projected. But if metered in by truck in 27,500 BF increments at one load per week as actually needed, that inventory will turn 4 times per month – and tie up only 1/4 as much cash. n Now suppose this yard pays for the car 10 days after shipment and delivery takes 3 weeks. It paid for 4 times the inventory it needed, and won’t see any of it for 11 more days. But if it buys by truck with quick delivery, every stick could be sold before the invoice even comes due. In fact, three truckloads could be sold this way before the car could even have arrived, again using only 1/4 the capital. n This strategy dependably multiplies turns and GMROI, dramatically improves cashflow, cuts carrying costs and frees up both capital and space for more profitable use. Margins are maintained through market moves and downside risk is significantly reduced because the inventory is turning faster than price changes can affect its value. There’s less inventory to count, and stock stays fresher, too.

Elite Blade

Designed to fit both table saws and miter saws, Diablo Tools’ new Wood Demon Ultimate General Purpose saw blade increases productivity up to 10 times longer versus standard carbide blades by producing high quality, precise cuts with a sandpaper-like finish that requires virtually no rework.

The blade features TiCo Hi-Density Carbide for maximum cutting life and superior performance in cordless saws; Axial Shear Face Grind for effortless, clean application; Double Side Grind tooth design for a “polished-like” cutting effect; and Hi-Alternate Top Bevel tooth geometry for extreme cutting precision.

DIABLOTOOLS.COM

(800) 334-4107

SPRAY-ON TEXTURE

DAP’s new Spray Texture Line reportedly delivers maximum coverage and seamless texture match with fast dry times. The line consists of 2-in-1 Wall & Ceiling for Orange Peel, Knockdown, and Popcorn textures.

Unlike competitive products on the market, DAP’s aerosol cans feature Aim Tech technology that offers a 60° adjustable nozzle angle to easily repair vertical, overhead and hard-to-reach areas with one can providing users much flexibility when completing projects. The nozzle also provides the ability to select a fine, medium or heavy level of texture when sprayed and includes a lock function for secure transport and storage.

All come in water-based formulas that feature a 30-minute paint ready time. Orange Peel is also offered in an oil-based formula that’s paint ready in five minutes.

DAP.COM

(800) 543-3840

COLD-CLIMATE WINDOWS

Simonton Windows & Doors’ newest energy-efficient glass option—PLUS4 Low-E Glass—is built to prioritize the overall well-being of homeowners, especially those in colder climates.

The windows meet the stringent requirements of Energy Star version 6.0 for the Northern Zone, which encompasses the largest portion of the continental U.S. of any zone, in addition to Alaska.

The glass is offered with the Impressions 9800, Reflections 5500, Reflections 5050, and ProFinish Contractor collections.

SIMONTON.COM

(800) 746-6686

ONE-PIECE FACE PROTECTION

Vader Combo from Brass Knuckle is a face shield with safety goggles built-in. It’s one wearable piece of PPE that does the job of two. It covers the whole face, protects the neck, and offers 180° peripheral vision. Ultra-soft rubber forms a splash barrier.

BRASSKNUCKLEPROTECTION.COM

(770) 674-8930

Read grade rules, span details, and get new promotional ideas for your business.

Sample the variety and versatility of eastern white pine.

Reach more customers by getting listed on NELMA’s Retailer Directory.

Listen to and watch product installation and comparison videos, plus grade representations.

Plastic, concrete or pine? Learn why consumers prefer natural over fabricated.

Use all your senses. Visit nelma.org for all things eastern white pine, spruce-pine-fir and other softwood species grown in the Northeast and Great Lakes region.

Ever see a paint swatch for wood grades? Scan here to see it. Simply open the camera on your smartphone or tablet, and hold it over this image.

@NortheasternLumberMfg

@WoodInspiration

@wood_inspiration1933

Date Book

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

Massachusetts Retail Lumber Dealers Association – Aug. 7, annual golf outing, Pinehills Golf Club, Plymouth, Ma.; www.nrla.org.

Midwest Building Suppliers Association – Aug. 10, Sycamore Scramble golf outing, Anderson Country Club, Anderson, In.; www.thembsa.org.

North American Wholesale Lumber Association – Aug. 17, regional meeting, Minneapolis, Mn.; www.nawla.org.

Southern Pressure Treaters Association – Aug. 17-19, summer meeting, Henderson Beach Resort, Destin, Fl.; www.spta.org.

The Hardware Conference – Aug. 17-19, Marco Island, Fl.; www. thehardwareconference.com.

Mid-States Distributing – Aug. 18-20, Fall Rendezvous, Phoenix Convention Center, Phoenix, Az.; www.msdist.com.

Northeastern Young Lumber Execs – Aug. 22-23, summer outing, Hershey, Pa.; www.nrla.org.

Building Material Suppliers Association – Aug. 23-25, roundtable, Cleveland, Oh.; www.mybmsa.org.

Forest Products Machinery & Equipment Expo – Aug. 23-25, Music City Center, Nashville, Tn.; www.sfpaexpo.com.

Florida Hardware – Aug. 25-26, fall dealer market, Renaissance at SeaWorld, Orlando, Fl.; www.floridahardware.com.

Indiana Hardwood Lumbermen’s Assn. – Aug. 25-27, Hoosier Hardwood Festival, Boone County Fairgrounds, Lebanon, In.; www.ihla.org.

Midwest Building Suppliers Association – Aug. 31, White Pine Classic golf outing, Tullymore Golf Resort, Stanwood, Mi.; www.thembsa.org.

MORE M&A AHEAD

(Continued from page 18)

Simpson Strong-Tie acquired Pieresearch in June, expanding its offering of concrete products in the commercial market. Pieresearch is a manufacturer specializing in non-corrosive plastic rebar reinforcing alignment and centralizer products for the deep foundation and earth retention industries.

In May, Builders FirstSource completed the purchase of Georgia-based JB Millworks, a manufacturer, distributor, and installer of millwork whose product offering includes doors, windows, stairs, rails, columns, posts, and trim. The acquisition adds value-added capacity in the Chattanooga area. The transaction followed the April purchase of Builders Millwork Supply, a millwork distributor serving home builders and remodelers throughout South Central Alaska.

Pella Corp. announced in May it is acquiring Lawson Industries. With the acquisition, Iowa-based Pella will expand into South Florida, adding to its capabilities in impact-resistant aluminum windows and doors.

National Hardwood Lumber Association – Sept. 6-8, intro to hardwood grading course, Memphis, Tn.; www.nhla.com.

BC Wood – Sept. 7-9, Global Buyers Mission, Whistler, B.C.; bcwood.com. Do it Best – Sept. 8-11, fall market, Indianapolis, In.; www.doitbest.com.

Hoo-Hoo International – Sept. 8-11, international convention, hosted by Cowichan Valley Club, Vancouver, B.C.; www.hoohoo.org.

North American Wholesale Lumber Association – Sept. 11-15, Fall Wood Basics Course, Peachtree City, Ga.; www.nawla.org.

Northwestern Lumber Association – Sept. 12-13, Legacy Group 2 roundtable, Jordan, Mn.; www.nlassn.org.

True Value – Sept. 13-16, Fall Reunion show, George R. Brown Convention Center, Houston, Tx.; www.truevaluecompany.com.

Blish-Mize – Sept. 15-16, fall market, Overland Park, Ks.; blishmize.com.

Kentucky Wood Expo – Sept. 15-16, Lexington, Ky.; www.kfia.org.

American Wood Protection Association – Sept. 17-21, fall technical committee meetings, Le Meridien Downtown, Denver, Co.; awpa.com.

Lumbermen’s Association of Texas – Sept. 18-20, annual convention & expo, Live! By Lowe’s, Arlington, Tx.; www.lat.org.

North American Wholesale Lumber Association – Sept. 18, Texas regional meeting, Arlington, Tx.; Sept. 20, Northeast regional meeting, Samoset Resort, Rockport, Me.; www.nawla.org.

Kentucky Building Materials Assn. – Sept. 19-20, blueprint reading & material take-off class, Belterra Resort, Florence, In.; www.kbma.net.

Ace Hardware – Sept. 19-21, convention, Orlando, Fl.; acehardware.com.

Northeast Lumber Manufacturers Association – Sept. 20-22, annual meeting, Samoset Resort, Rockport, Me.; www.nelma.org.

Construction Suppliers Association – Sept. 27-29, annual conference & show, Lodge at Gulf State Park, Gulf Shores, Al.; www.gocsa.com.

Lawson Industries has been serving the Florida market for more than 60 years and will continue to operate under the Lawson brand name post-acquisition. Pella’s other Florida brands include Pella, Custom Window Systems (CWS), and Avanti.

Strategic buyers are also reshaping their portfolios and divesting underperforming and non-core assets to strengthen their balance sheets and enhance earnings. In June, ASSA ABLOY received antitrust clearance to purchase the Hardware and Home Improvement division (HHI) of Spectrum Brands, a transaction previously announced in 2021, for $4.3 billion. HHI is a manufacturer of complementary security, plumbing, and builders’ hardware products that will accelerate the expansion of ASSA ABLOY’s residential business in North America and advance its digital transformation. The business operates manufacturing facilities in the United States, Mexico, Taiwan, China and the Philippines.

In April, Jeld-Wen announced it is exiting its Australasia window and door business, selling to Platinum Equity, an operationally oriented pri- vate equity sponsor with significant experience in the Building Products industry. The business operates from 41 manufacturing locations across Australia, Malaysia, and Indonesia. We anticipate the markets will remain cautious during the second half of 2023 for Building Products M&A, although that could change if inflation and mortgage rates cool at a quicker pace than expected. A pipeline of deals is growing in Building Products, and there is going to be a first-mover advantage to buyers standing ready to capitalize and acquire high-quality companies at reasonable prices before the bidding war begins. BP

ANDREW K. PETRYK

Andrew is