BPD Sept 2017 by 526 Media Group

SEPTEMBER 2017

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Building Products Digest

THE VOICE OF THE LBM SUPPLY CHAIN — FOR 35 YEARS

OSB, PLYWOOD & PANELS • REDWOOD vs CEDAR • NELMA SPOTLIGHT

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CONTENTS September 2017

Volume 36 n Number 9

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Special Section

Features

Departments

34 NELMA SPECIAL ISSUE

10 MARGIN BUILDERS

8 ACROSS THE BOARD 20 OLSEN ON SALES 22 THE REVENUE GROWTH HABIT 24 TRANSFORMING TEAMS 46 MOVERS & SHAKERS 48 TALK BACK 50 NEW PRODUCTS 56 ASSOCIATION UPDATE 58 SELLING WITH KAHLE 60 CLASSIFIED MARKETPLACE 60 IN MEMORIAM 61 DATE BOOK 61 ADVERTISERS INDEX 62 FLASHBACK

NORTHEASTERN LUMBER MANUFACTURERS ASSOCIATION PRESENTS AN UP-TO-THE-MINUTE UPDATE ON EASTERN WHITE PINE, VIRTUAL TOURS, GRADING RULES, ITS RECENT MERGER, AND MORE

12 FEATURE STORY

OSB PRODUCERS APPROACH MAX CAPACITY

14 INDUSTRY TRENDS

WHY AREN’T MORE OVERLAID STRUCTURAL PANELS BEING SOLD?

SEPTEMBER 2017

BPD

NAIL DOWN THE DETAILS TO CUT CALL-BACKS ON STRUCTURAL PANELS

Building Products Digest

THE VOICE OF THE LBM SUPPLY CHAIN — FOR 35 YEARS

16 PRODUCT SPOTLIGHT

OSB, PLYWOOD & PANELS • REDWOOD vs CEDAR • NELMA SPOTLIGHT

WESTERN SOFTWOOD SHOWDOWN: REDWOOD VS. CEDAR

18 COMPETITIVE INTELLIGENCE

YOUNG BLOOD REINVIGORATES SOUTH MEMPHIS DEALER

Quick Response - Deep Knowledge Relationships Built On Trust

24 NAWLA: THINKING AHEAD

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IS TECHNOLOGY A RELATIONSHIP KILLER?

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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 AUGUST 2017

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ANNUAL SALES & MARKETING SPECIAL ISSUE

Sales & Marketing Coordinator Chelsea Hiers chiers@building-products.com New AWPA Standards for Treated Wood There is an important change in the U1 Standards establishing new guidelines for wood treated to UC4A Ground Contact General Use. As an example, joists and beams shall be treated to UC4A (ground contact when they are diffcult to maintain, repair or replace and are critical to the performance and safety of the entire system.

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ACROSS the Board By Patrick Adams

Honesty I

’M SITTING IN one of America’s fine dining establishments, Denny’s. We sit down with the kids and my wife excuses herself to the restroom when a minute later, the waitress comes over to introduce herself. She takes one look at us and exclaims with a huge smile on her face, “You have the cutest grandchildren I’ve ever seen!” My daughter quickly rose to my defense. The waitress shrugged and walked away. Honesty…. Sometimes honesty hurts, but it’s still good when you hear it these days because for some reason it seems to be a rare commodity. Since our blessed family has expanded, our one-time “lifetime house” has felt a bit cramped, so we considered a larger one. After months of looking, we found the perfect home that we had visions of the kids growing up in. The original owners had done just that and expressed they wanted to sell to a family that would do the same. We wrote a letter introducing us accompanied with a full-price offer, because it was fair for this home. They responded that they only wanted to sell the home to us and weren’t dealing with anyone else. After a few back and forth counters over small details, were assured we had a deal… until we got the call that they had used our offer to get someone else that was also a client of their agent to bid higher and had closed the deal without so much as an opportunity to bid higher. Our agent shared, “Well, this is the way it works. You don’t have a deal until the papers are signed.” Honesty…. Sometimes honesty isn’t fair, but does that mean we should change our ways to accommodate this way of doing things? I’m trying hard to run a business and to raise my children in a way where your word means something. That hard work matters and that the “good guys” always win in the end. That being kind is the better path and that we are all reflections of our character. Essentially, that these “little things” in life actually are big things and that they matter. I try to live by a simple code in life; do what you say, deliver what you promise, work as hard as you can and be thankful for all you have. “In good times and bad, until death do us part…” is a promise of honesty and yet the divorce rate is over 50%. It used to be that your “word is your bond,” but maybe that has changed too? My wife and I have been together for 25 years and I still look at her as my best friend, my partner, and the love of my life. That doesn’t mean that it’s always easy, but the best things in life I’ve found rarely are. However, when I said “I do…,” it wasn’t on a whim; it was something that I thought long and hard about and decided that my life was better every day that she was in it, and it has been ever since.

Has society always been this way or have things changed? In the mid-19th century P.T. Barnum was attributed with the quote, “There’s a sucker born every minute.” Perhaps I’m living in a fantasy where being fair and honest is really a sign of weakness and we should all just look out for #1? It’s a dilemma I find myself contemplating on a regular basis, usually after I end up on the “short end of the stick,” as they say. Maybe living where I do in Southern California simply breeds more of the “eat or be eaten” mentality? Perhaps, but I do know this much. When I received the news about the house, I was at an industry event. I attended the closing dinner that evening at a winery with over 200 of our industry’s finest. During the event, I caught up with countless colleagues who I now call friends and many others who I know over time will eventually share the same title. Many shared thanks for all that we do to serve the industry while others came up and said things like, “I appreciate you remembering to do XXX, you didn’t have to do that, but it really helped our business.” My faith in our great nation and living by “my code” is continually restored as I travel through our industry that is full of, what I believe, some of our nation’s best people. People who share in the thought that you look out for each other, that your word is your bond and it is an honor to be able to work hard and provide for your family. Thank you for all that you do—we know it is not easy these days to live in this way, but we do know the reward for a life well lived is earned each evening when we lay down to sleep with peace in our hearts knowing we made a small difference in our world. “Honesty is the best policy.” ~ Benjamin Franklin

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

Building Products Digest

September 2017

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MARGIN Builders By APA – The Engineered Wood Association

Nailing down the details Reduce callbacks with proper spacing

N CONSTRUCTION,

it’s the details that can make or break a project. When it comes to the building envelope (walls, floors and roof), even something as simple as nail spacing and pattern can have a major impact on a home’s overall performance. Walls, floors and roofs are critical structural components to any home. Properly installed floor systems also reduce, or even alleviate, squeaking and other noises underfoot. Building material suppliers play an important role in selling packages that

Building Products Digest

include the right fasteners for the specified applications and in helping their contractor customers follow recommended installation practices. Whether a builder is looking to meet code requirements for resisting wind and seismic loads or install solid, quality floor systems, plywood or oriented strand board—wood structural panels—are the premier choices for quality home builders. The selection and application of the right nails and nailing patterns to use with the sheathing is critical. September 2017

“Getting the nail installation right the first time is important,” says Mary Uher, field services manager for APA. “Simply adding more nails is not always the right fix for poor nail spacing. Too many nails can lead to splitting of your support material and increase panel buckling risk.” Attention to detail with good nailing patterns can ensure optimum structural performance and reduce callbacks. Depending on the surface (walls, floors, roof) and the openings, there Building-Products.com

will be a number of factors to consider when specifying fasteners. How far from the panel edges should the nail be? What about the spacing from nail to nail? Following are several additional considerations for wall and floor assemblies. Walls: Continuous sheathing with wood structural panels contributes to a structureâ&#x20AC;&#x2122;s ability of handle uplift loads, lateral loads, and wind pressures and protecting the occupants. It can also provide the greatest flexibility when bracing walls that include window and door openings. In addition to spacing all panels 1/8 inch at all edge and end joints, panels should be nailed to the framing 6 inches on center along the panel edges with the nails located no less than 3/8 inch from panel edges and ends while nail spacing in the center field of the panel is typically 12 inches on center. In some cases where engineered shear walls may be required due to frequent seismic activity or high wind loads, tighter nail spacing may be required. Recommended nail size varies with panel thickness and, in some cases, shear wall design. Be sure to consult the applicable building code to ensure your customers are selecting the right materials for the job. In shear wall design, wood structural panels are specified by an engineer to resist the forces determined by engineering analysis and to meet code. Shear walls have specific design values depending on their construction, fastener spacing, fastener size, sheath-

Building-Products.com

ing thickness, and framing species. Nails around the perimeter of the panels provide significant shear strength and prevent buckling.

layment, hardwood flooring, and ceramic tile.

Floors: The right number of nails, used correctly and in conjunction with a glued nailed floor system, will ensure that the floor behaves as a composite system. The correct nail size and spacing for floor systems depends on the joist spacing and panel thickness, as well as the type of panel used. In glued floor systems, use 6d ring- or screw-shank nails for panels with a Performance Category of 3/4 or less, and 8d ring or screw-shank nails for thicker panels. If the floor becomes wet during construction, it should be allowed to dry before application of finish floor, including carpet, under-

APA details proper installation of continuous structural panel sheathing in residential construction in its Engineered Wood Construction Guide (Form E30). This is information builders need to know before they get started on any residential construction project. Visit www.apawood.org for more tips and guides on how to build better performing homes.

September 2017

Attention to Detail

â&#x20AC;&#x201C; Founded in 1933 and based in Tacoma, Wa., APAâ&#x20AC;&#x201C;The Engineered Wood Association represents approximately 163 plywood, OSB, glulam timber, wood Ijoist, rim board and structural composite lumber mills in the U.S. and Canada.

Building Products Digest

FEATURE Story By David Koenig

OSB producers approach max capacity L

AST YEAR , nine companies combined to produce 21.2 billion sq. ft. of OSB in North America, steadily rising due to a rebound in residential construction. Not only are U.S. starts up about 4% compared to a year ago, but single-family starts—which use three times more OSB than multi-family starts—are up 8%. Manufacturers are operating near full production, yet are slow to restart shuttered plants, add new facilities, or expand. So OSB prices have spiked nearly 30% in a year to $424 MSF (Random Lengths OSB composite). Norbord, Toronto, Ont., has enjoyed a banner year over the last 12 months at its 13 active OSB plants, buoyed by rising housing starts and OSB sales, production and prices. During the period, its North American OSB shipments were up 3% yearover-year. Approximately 25% of its OSB sales volume went to specialty end-uses (industrial applications and

export markets), progress toward the long-term goal of 50%. Its North American mills ran at 99% of capacity in 2nd quarter 2017 (excluding the two curtailed mills in Huguley, Al., and Chambord, P.Q.), up from 96% in the same quarter last year and 94% in the prior quarter. Norbord continues preparations to restart Huguley, but no earlier than the 4th quarter of 2017. Chambord (which Norbord took over late last year in a swap with LP) has been granted a wood allocation by the Quebec Minister of Forests, Wildlife & Parks, to take effect April 1, 2018, though it will continue monitoring market conditions before committing to restart. Louisiana-Pacific, Nashville, Tn., has 12 OSB plants in the U.S. and Canada (10 operating), with combined annual capacity exceeding 5 billion sq. ft. In 2016, LP produced 4.5 billion sq. ft. of OSB in North America, a 9%increase from the year prior.

ROYOMARTIN is short months away from starting production at a huge new OSB plant in Texas.

Building Products Digest

September 2017

Late last year, LP picked up two idled OSB mills—the former Ainsworth OSB mill in Cook, Mn., and Norbord’s Val d’Or, P.Q., facility—but both are long-term resurrection projects. Georgia-Pacific, Atlanta, Ga., has for years operated just six of its 10 OSB mills, providing up to 3.7 billion sq. ft. of annual capacity (with about 1.3 billion sq. ft. on the sidelines). Weyerhaeuser, Seattle, Wa., last year approached 96% of full-capacity production at its six North American OSB mills. In 2016, Big W’s mills produced 2.91 billion sq. ft. of OSB, up 2.2% from a year earlier. Full capacity is 3.035 billion sq. ft. Huber Engineered Wood, Charlotte, N.C., continues working toward restarting its Spring City, Tn., mill next spring. The plant, its fifth, has been down since 2011. Tolko, Vernon B.C., fast-tracked plans to resume OSB production at its mill in High Prairie, Alb., mothballed since 2008. It recently ordered two pocket batch feeders to upgrade the OSB line and expects to begin putting out product in early 2018. It now runs OSB mills in Meadow Lake, Sask., and Slave Lake, Alb. RoyOMartin, Alexandria, La., remains on target for a fall 2017 start-up of its new OSB mill in Corrigan, Tx., with production expected to ramp up early next year. The facility will nearly equal the 850-million-sq.-ft.-a-year capacity of ROM’s Oakdale, La., plant. Arbec Forest Products, St. Leonard, P.Q., has about 700 million sq. ft. of OSB capacity at its mills in Saint-Georges-de-Champlain, P.Q., and Miramichi, N.B. Langboard can produce up to 440 million sq. ft. of OSB per year at its Quitman, Ga., mill. Building-Products.com

INDUSTRY Trends By Roy Nott, Surfactor Americas LLC

Why aren’t more overlaid structural wood panels being sold? O

panels often have significant functional advantages over “raw” commodity plywood and OSB in many applications today. And they don’t cost much more. So why aren’t more overlaid structural wood panels being produced and sold? I think there are at least two reasons why. VERLAID STRUCTURAL WOOD

Path Dependency Ever wonder why our most modern personal computers still have the old QWERTY keyboard? When personal computers were first introduced, people who were familiar with the old typewriter keyboard layout transitioned most easily to similar keyboards. While these keyboards are no longer optimal today, those past decisions constrained the path of future product development. Academics call this “path dependency.” In many cases our overlaid, structural wood panel procurement, production and marketing efforts are locked in to old process and business development paths and can’t take full advantage of today’s technological and economic possibilities. There are, for instance, a plethora of largely unexplored overlay business development options for structural wood panel producers.

Overcoming Path Dependency When I was in college, way back when, we learned to evaluate new process and product investments with the aid of net present value, internal rate of return and payback period calculations. Today college students are also taught to include the value of “real options,” essentially the value of future flexibility. Future flexibility has real economic value that should always be incorporated into new process and product development decisions. In addition to path dependency challenges, change is scary and old habits—both individual and organizational habits—are hard to break. One of our industry’s habits is the single-minded, “make the same product cheaper” habit. I believe this habit is, in turn, the result of “the market for

Building Products Digest

September 2017

OVERLAYING structural wood panels provides great added value, but market forces have tempered their ascension. (Photo courtesy of Surfactor Americas)

lemons” phenomena and individual and institutional habits often formed, out of necessity, during the very difficult times in our highly-cyclical end use markets.

The Market for Lemons George Ackerloff, now emeritus professor at Berkley and the husband of Federal Reserve chairman Janet Yellen, won the Nobel Prize in Economics for his paper The Market for Lemons. In its July 23, 2016, issue, the Economist summarized Ackerloff’s famous paper: “Suppose buyers in the used-car market value good cars—‘peaches’—at $1,000. A poor quality used car—a ‘lemon’—is worth only $500 to buyers. If buyers can easily tell lemons and peaches apart, trade in both of them will flourish. But, in reality, buyers might struggle to tell the difference between a peach and a lemon: scratches can be touched up, engine problems can be left undisclosed, even odometers may be tampered with. “To avoid paying for a peach while buying a lemon, buyers cut their offers. They might be willing to pay, say, $750 for a car they perceive as having an even chance of being a lemon or a peach. But the sellers of a peach logiBuilding-Products.com

cally reject such an offer. As a result, the buyers face ‘adverse selection’—the only sellers who will accept $750 are those unloading lemons. “Smart buyers foresee this problem. Knowing they could be buying a lemon, they offer only $500. Sellers of the lemons end up with the same price they would have received were there no ambiguity. But the peaches all stay in the garage. “Information asymmetry” kills the market for good cars.” Structural wood panel buyers rely upon qualified inspection and testing agencies like the APA to routinely test and certify the quality of the products they buy. This creates an incentive for individual panel producers to “push” the standard. A passage from Ackerloff’s famous paper: “There are many markets in which buyers use some market statistic to judge the quality of prospective purchases. In this case there is an incentive for sellers to market poor quality merchandise, since the returns for good quality accrue mainly to the entire group whose statistic is affected rather than to the individual seller. As a result there tends to be a reduction in the average quality of goods and also the size of the market.” When the industry is young, industry production technologies vary little and raw materials are relatively homogeneous (e.g., OSB), this isn’t a major problem. But it is a serious problem when the inspection and testing agencies find it difficult or impossible to keep up with a very rapidly changing industry. An example would be today’s overlaid Douglas fir plywood industry. There are rapid changes underway on both the demand side (e.g., much higher alkalinity concrete mixes are now essentially “pulping” conform panels) and on the supply side (e.g., much reduced

Building-Products.com

supplies of small-knot, dense, Douglas fir veneers). The “market for lemons” is likely having a major effect on the size of this market today.

Overcoming the Market for Lemons How can individual panel producers overcome this “lemons market” problem, their industry’s “race to the bottom,” and depressed industry sales levels? They can offer company-specific product performance guarantees. Another approach is to more aggressively brand products. In either case, the mill’s products need to be clearly differentiated from their competitors’; as we discovered earlier, industry-wide, third-party quality certification is important but not sufficient. Like car buyers, panel buyers won’t chance paying peach prices when they may actually be buying a “dressed up” lemon. For some structural panel producers, product differentiation requires a major change in company culture. For instance, it is very difficult to produce innovative, differentiated products for the end use market if the company doesn’t also adapt a different supplier-buyer mindset. Supplierpartners are often critical to the structural wood panel producer’s differentiation. As industry competition comes to focus more and more upon only one of the “4P’s of marketing”—price— “lemons” tend to proliferate and industry sales volume tends to decline. – Roy Nott is president of Surfactor Americas LLC, Aberdeen, Wa., a German-owned producer of overlays, glue films, and press cleaning films for the global wood panel industry, with manufacturing operations in Finland, Germany and Malaysia. Reach him at roy.nott@surfactor.com.

September 2017

Building Products Digest

PRODUCT Spotlight By Ben Roberts, TimberTown

Redwood vs. cedar R

EDWOOD.

CEDAR. A battle for the ages in the decking and outdoor lumber industry. Who has what it takes to come out on top? To help us decide, we went to the source. For cedar, specifically western red cedar, we turned to the Western Red Cedar Lumber Association to find out all there is to know about cedar. Our source for information on redwood was Humbolt Redwood, America’s largest supplier of California redwood. So, what’s the difference between redwood and cedar? The research is clear: both redwood and cedar suppliers believe their product is the best. No surprise there. So which is really better, redwood or cedar? As we dug a little deeper into each product, we discovered some important factors worth mentioning. In our redwood vs. cedar research, we focused on four main categories: appearance, environmental impact, longevity and value. Whether your customers are building a deck, pergola or fence, here are eight factors that can help them decide between cedar or redwood.

APPEARANCE 1. Color It’s tough to determine a winner in this category, but there is definitely a difference in appearance. Western red cedar, unless stained a different color, will naturally have a yellowish tone, while redwood has a noticeably more reddish-brown hue (there’s a reason it’s called redwood). Both are beautiful in their own right, but if it will receive paint or a tinted stain, they may opt for cedar because it costs less and has a lighter natural color. Regardless of

Building Products Digest

September 2017

which wood is chosen, both will eventually turn a silvergray if not periodically maintained. Who Wins? It comes down to personal preference.

2. Grain The project or budget may determine the type of grain or number of knots they want in their wood. With 30 grades of redwood and 10 grades of cedar, you can get just about any grain you want with either product. Because redwood is harvested primarily from larger, older trees, there are typically fewer knots overall than its cedar counterpart. Redwood is also more readily available in “clear” grades, which means there are no knots at all. When it comes to overall smoothness, redwood has a slight edge over cedar. Again, it’s hard to choose a winner of this category since every project requires a different look, but based on grade availability redwood wins by a narrow margin. Who Wins? Redwood for smoothness, but your project will ultimately decide.

ENVIRONMENTAL IMPACT 3. Eco-Friendliness Although this list is supposed to show the differences between redwood and cedar, these species are very similar when it comes to being eco-friendly. Both have product certified by the Forest Stewardship Council, both are 100% natural products, and both claim to be more environmentally friendly than composite brands. Building-Products.com

Because redwood is primarily harvested in Northern California and western red cedar comes from Canada, the environmental requirements are almost identical. Who Wins? They’re both winners in our book!

4. Sustainability Western red cedar and redwood may have the same environmental certifications, but can they grow new trees as fast as they harvest old ones? Sustainable growth is obviously important if either industry plans to stay in business, and both have done an excellent job at harvesting responsibly. Since it takes 50+ years for cedar or redwood seedlings to be harvestable, the growth process isn’t an exact science. According to a cedar growth study, second growth western red cedar is just beginning to be harvested and is producing a high quality product. However, Humbolt Redwood takes it a step further saying they harvest less than the annual growth rate, meaning they are growing more redwood than they are harvesting. Who Wins? Neither product is going away any time soon, but redwood is the one saying they grow more than they harvest.

Redwood and cedar naturally contain tannin (a chemical that gives the products their color), which keeps the wood insect resistant. Since California redwood has a higher level of tannin, it could be more rot resistant than cedar. Who Wins? It’s too close to call.

VALUE 7. Availability At the end of the day, it all comes down to supply and demand. The availability factor will depend on your region, but overall western red cedar is in much greater supply than California redwood. Producing almost 1 billion bd. ft. a year, cedar is easily accessible anywhere in the country. Redwood is definitely the popular choice for projects in the Northwest region of the U.S., but it may be harder to find exactly what you need for your project in other regions. W ho Wins? Most areas: cedar. In the Northwest: probably redwood.

8. Cost Comparison Primarily due to their lower availability, redwood products typically cost more than a comparable grade of western red cedar. The price differential will vary by region; for example, here in Texas (headquarters for TimberTown) redwood products are 15% higher in cost on average than the same cedar products. This is why almost all the fences built in Central Texas use cedar fence pickets. So, although redwood may have a leg up in strength and durability, cedar has the best price point. Who Wins? Usually cedar, but depends on the region.

REDWOOD reportedly has a slight edge over cedar in the strength department. (Photo courtesy of California Redwood Association)

LONGEVITY 5. Durability Finally, a difference that we can actually measure! To determine the hardness of redwood and cedar, we are using the Janka hardness test. Redwood—with a Janka rating of 450 lbs.—is about 23% stronger than cedar (Janka rating of 350 lbs.). Whether or not the extra strength is necessary for your project is up to you, but clearly redwood is more durable than cedar in general. Who Wins? Redwood, but that doesn’t mean cedar can’t handle your project.

6. Maintenance Both cedar and redwood give almost identical tips for cleaning, color restoration, and finishing. With either product, soap and water is going to clean most dirt and stains. Mildew can be taken care of with a little bleach and water. For restoring color (due to extractive bleeding or iron stains) use an oxalic acid-based product. Building-Products.com

MORE WESTERN red cedar is processed each year than redwood. (Photo courtesy of Western Red Cedar Lumber Association)

AND THE WINNER IS... Up to you. The bottom line is customers should choose the best option for their specific project. Thinking about the look they want, budget and product availability will help decide if redwood or cedar is better. Regardless of which species they choose, they’re getting an excellent product! – Based in Austin, Tx., Ben Roberts is marketing director for TimberTown, which operates lumberyards/showrooms in the Austin and Atlanta, Ga., areas, specializing in outdoor living products. Find out more at www.timbertown.com. September 2017

Building Products Digest

COMPETITIVE Intelligence By Carla Waldemar

New Blood T

HINGS LOOKED BAD .

Then, as time went on, things looked even worse. Billy Hyman, in his 80s and a man with no family to succeed him, put his lumberyard in South Memphis, Tn., on the market in 2006. But folks were closing yards that year, not buying them. Hyman had purchased Jordan Lumber—an operation launched back in 1890—after he returned home as a veteran of World War II. He’d gone on to move the company to another location, purchased adjoining land, and installed a line of hardware. He was also a politician who chaired the city council and, with a partner in Hyman Homes, built subsidized, lower-rent housing as part of the city’s revitalization. So Billy wanted to leave a legacy, not a sign reading “Out of Business.” Dan Fuller watched it all happen. Dan, today’s general manager, had joined the lumberyard in 1996 at age 23. As he recalls, “Hyman tried to sell the company for eight or nine years as it slowly went downhill. Our best year, 2006, we did $11 million; then gradually, year after year, things got tougher and tougher.” Until, voila: In 2015 a pair of young bloods—brothers Don and Rick Youngblood, to be exact—bought the business out of the blue and at a most favorable price—a winwin for both parties. Don is owner of a successful auto

parts operation and Rick, a commercial cabinet shop. Residential cabinetry was what Hyman’s customers sought, Rick knew, but the five-acre property allotted him space for his shop and access to products, and at a good price. Neither had ever owned—much less, worked in—a lumberyard before. “Never once!” as GM Dan explains it. “So the brothers asked me, ‘What needs doing?’ ‘I’ll be honest,’ I responded. ‘Nothing’s been touched for years.’” (Okay, there was a snippet of good news, too, which was the outfit’s location—in an impoverished area that would never be a shopping destination, but with good highway access, even to customers in Mississippi and Arkansas. “Plus, this is a very industrial area, and we handle lots of their maintenance.”) Now the bad news: He told them, “We need a POS. An outside salesman. And advertising”—all of which endeavors had previously added up to zero. Fast-forward a few short months: By mid-2016, Youngblood Builders Supply had acquired a brand-new POS; remodeled and expanded the entire store under the guidance of its supplier, Memphis-based Orgill; added a new roof and 5,000 new items, plus a paint department; and staged a grand re-opening celebration. Oh, and—what proved to be a vital step—hired its firstever outside salesman. “I found him,” Dan says, “by talking

NEW OWNERS relied on the counsel of longtime employees to identify opportunities to rebrand and reinvigorate the Memphis lumberyard.

Building Products Digest

September 2017

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GRAND REOPENING was carefully crafted to celebrate recent changes and to highlight new and expanded product lines, with an assist from several top vendors.

to folks I knew. He’d just left a big-box store, tired of that style of doing business, and already knew of the company. He had contacts, relationships. And with our new POS, he could access our system without actually being here. “Sure,” Dan allows, “there are growing pains right now as business has started growing again. We used to have five delivery trucks and now have just one. I could use a second, on and off, but it’s hard to find a driver who’d agree to double up in the yard. Still,” a smile creeps into his voice, “now I’m hearing, ‘It’s fun to work here again!’ when it used to be ‘Will I still have a job next week?’ Now they know we’ll be here and they have a future.” The firm has always focused on smaller contractors and remodelers, rather than the mega-builders. So when Dan changed the product mix, he did it with them in mind— added more power tools, welding supplies—“pro lines of product, beefing them up quite a bit. Also, for the property management side, no longer just six doorknobs in stock— rather 50. And we added $30,000 to $50,000 in paint.” He continues: “Our biggest customer in years past had never even been in here, just knew the phone number—and still today, many have never been in the store. We take pride in offering service by a local company, not a big box—more agile than the box stores. We gained the trust that we can take care of them, serving a variety of pros— some just putting up a fence or pergola, others renovating whole apartment buildings: pretty varied. And because we’re in an industrial area—refineries, fertilizer and chemical plants—we provide those businesses with things like cleaning products. “We’ve also dealt with the city for years (thanks to Mr. Hyman) and have contracts with the City of Memphis and the housing areas. They like that we’re only a 10-minute drive from downtown. Maybe we might not have an item in stock, but we can deliver it within a day or two, which they really love. We can get just about anything—we have connections—such as a recent request for hip-waders for the sewers. And at a good price.” “We can take care of them,” Dan underscores, thanks to a veteran crew of 17. “I’ve been here 21 years, and three of them have been here even longer! We’ve also added a few new people and hope to add more as we grow.” Many of the yard’s customers are just as long-term, too—and that may pose a problem. “They’re older, and we hadn’t replaced them, with no advertising nor outside salesman. But we’re starting to see some new guys—people stopping in for 2x4s to remodel a bathroom or do a room Building-Products.com

EXPANDED PAINT department has been a big profit generator.

addition: our core business. We’re not a giant like 84 Lumber, and we’re not on a railroad spur, so we can’t always compete. But we do carry laminated beams and rebar—just on a smaller scale. Plus, we make it quick for them. Contractors can park close, walk in, get expert help, and we’ll load their truck without them having to handle the materials, which you won’t get at 84. Plus, our prices are as good, if not better, fighting that misconception.” Advertising was another goal. “We haven’t gotten to where we need to be yet,” Dan concedes. “Instead, we spent the last year on ten years’ worth of repairs to the property. So we haven’t gone ahead with advertising yet; I haven’t figured out the budget.” In the meantime, he’s doing fine with (free) social media. “It’s been our ally. Our home page pops up on a search.” And, of course, it promoted the grand re-opening. There had been discussion on when to announce the new owners, new name: “‘Should we do it right away?’ they asked me. ‘No, it might scare folk off,’ I advised. ‘Let’s change everything, then show it off and change the name.’ Many customers never realized there were new owners, and people fear change.” So last September, the event was staged. “We unveiled our new name and we cooked every day, an outside barbecue. We brought in eight or 10 vendors, had give-aways. We showed the pros our change in inventory, like adding many more power tools. We’d decided to jump in, feet first, and sell that stuff. It was a way to tell everybody that we’re still here, and look at what we’re doing to help you do your job. We saw a lot of first-timers, too. They told us, ‘We never knew you were here,’ though we’d been here forever. Also, ‘We didn’t know you were still around.’” Around? You bet. “The recession actually helped us. We’d hear horror stories here in Memphis about a yard with one or two big-builder customers who’d gone belly-up and took the lumberyard down with them. But our sales are up 15 to 20% over last year, the first improvement since the recession. [Owner] Rick stops in every day, but trusts me to oversee everything; I enjoy that faith. So I guess I’ll stick around another 20 years!” Carla Waldemar cwaldemar@comcast.net September 2017

Building Products Digest

OLSEN On Sales By James Olsen

Friction: Challenging the status quo smooth partnership. But it was not given, it was earned. If we do “sales” the wrong way we will have little, if any, friction in our livesbut we won’t sell much either.

When Friction Happens

“Y

OU CAN’T

start a fire without a spark.” – Bruce Springsteen, “Dancing in the Dark”

Change is difficult. People like things to stay the same. Especially people with a real or (in our case) perceived advantage. In history, the ruling party never gives up its power without political, physical, or economic pressure, from the real or (as in our case), perceived underdog. The “status quo” in sales is: salespeople give the customer their price or their proposal and the customer says, “I’ll let you know.” Sadly, most salespeople—80%—go along with this way of thinking and doing business. This status quo doesn’t work for us. Master Sellers understand this and work from the first contact/conversation with customers to establish a give-and-take/partnership relationship vs. a “give me the price and I’ll let you know” relationship.

Friction As salespeople, we need to embrace our roles as change agents. Change by definition creates friction. Master Sellers understand this and get down to doing it. They don’t hold back. They are not passive participants in the sales process. They are committed advocates for their proposal. What people want is a life of smoothness. This is not our role. Many salespeople look at the person who is killing it and think, “I can’t wait until I have the accounts and relationships Susan has; then sales will be fun and profitable.” This is a myth. Susan may look like she has zero friction with her customers, but I guarantee that she does. Susan makes it look easy, because she is confident and professional, but she still has to navigate the same situations that the struggling seller does. She actually has more because she asks for and expects to get the business (way) more often than the seller who is afraid of friction. In many cases we are seeing a relationship between Master Seller and client at the mature stage. The Master Seller has already done the “friction work.” The result is a

Building Products Digest

September 2017

Customer: “I’m happy with my current supplier.” Master Seller: “I understand you have great suppliers. You are a great company and I’d expect nothing less. But we are working with customers just like you that also have a strong network of suppliers. We are helping them compete in this hyper-competitive market and we will do the same for you. Give us 90 days to prove we can help you.” Customer: “I’ve got to check my inventory.” Or “I’ve got to walk the yard.” (Not true. About 95% of the customers we talk to every day are sitting at their desks and are looking at a real-time inventory system!) Master Seller: “Okay, John, I’ll wait. You’re just going to pull it up on your computer, right?” Or “How do you check your inventory?” Customer: “I’ll let you know. I’ve got to get a couple more numbers.” Master Seller: “Why don’t we put it together right now?” Or “I’d love to let you get back to me, Zach, but this won’t be here in 15 minutes.” Or “Hey, Sara, you don’t need to check it, we’ve already scoured the market for you; this is without a doubt your best deal. What’s your order number?” Or “I know you want to shop this and get your best price, which in some cases makes sense, but right now, shopping is going to cost you money. This is the last truck we have at this price for this shipment. There is no better deal. Let’s put this one together.” Sellers who struggle do everything in their power to avoid friction. And they succeed. They have little friction in their daily (sales) lives, but underachieve because of it. Master Sellers realize that causing and diffusing friction is a good thing. They are not afraid of the NO–they search it out. The sooner the customer says no, the sooner they will say yes. We are the straw that stirs the drink. It will not stir itself. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

THE REVENUE Growth Habit By Alex Goldfayn

Are internal communications your missing link to growth? A

work with clients revolves around communicating with customers and prospects. I teach salespeople how to communicate to existing customers about all of things they can buy from you, because current customers are only consciously aware of about 20% of what they can buy from you. And how to communicate with prospects, not just customers. Because too often, our days are made up of answering calls from current customers who need something, or have a problem. These calls come one after another, and when they do, we don’t get a chance to call on prospects. I also implement systems of marketing communications: building your list, sending a good newsletter every two weeks, and a “did you know” email on in-between weeks. Recently, however, I’ve also found myself working another kind of communication, and found it to be equally important: internal communications. It turns out, some of my clients have entire departments that don’t interact with each other on important issues like what products your customers might need. For example, at many companies, the internal customer service people don’t really talk with the external salespeople very much. They might discuss urgent, pressing things like an angry customer, but they rarely have the time (or, frankly, the interest) to alert their sales counterpart about a product they just uncovered a customer is buying. You know, WE sell that here, and everybody knows one P.O. is better than two! Let’s say a customer service person is talking with a customer who mentions their frustration with another supplier. This should immediately be communicated to this customer’s salesperson so he or she can call this customer on the phone. Why don’t you let ME help you with that? Many companies have orders or quotes that occur on their web site, but often the salespeople are not copied on these electronic communications. Why not? This is a glorious lead generation resource. Imagine if salespeople were asked to call—again, on the phone—customers who request a quote or enter an order online? I saw your order come through, and I wanted to learn a little bit more about what you’re sourcing and how we might be able to help. We handle many products that complement the one you ordered. Also, here’s a fascinating one: I teach nearly every client to offer additional products and services to your customers, as discussed above. But many times this staff doesn’t know what they can offer! The customer doesn’t know what else they can buy from you, but neither does the staff! And if the customer-facing people don’t know what they can sell, how can customers buy it?! LOT OF MY

Building Products Digest

September 2017

Finally, while I speak to the customers of my clients on nearly every project to collect testimonials and present them to the customer-facing staff in the workshops I conduct with them, these testimonials are frequently not seen again. If you have good testimonials from customers, you should be actively placing them in front of your team. Let people see how good they are. Put them on the walls! Put them into people’s email inboxes. Trickle them out. Remind people what they do. They are not selling products and services, they are improving lives and companies. So then, it seems that some key internal communications, systematized, can significantly improve revenue at most companies. These communications lag because people are busy! They get to work, the phone starts to ring, and keeps ringing, until it’s 4:30 p.m. and time to go home. What to do? Implement fast, simple internal communications practices: Conduct customer huddles. Once a week, with all customer-facing staff. If they’re remote, they can join via web meeting. Thirty minutes maximum. Every person brings a customer to the table who can buy more, or is buying from another supplier products or services that you can help them with. Do these meetings weekly, and think of them as focused conversations for internal referrals. Create a categorized list of did you know questions. If a customer buys this from us, here are four or five additional products or services that you can and should offer them. Tape the lists to the bottom of monitors. Ask people to communicate one such product or service on every call. Email your customer-facing staff one or two products or services weekly. That’s right, just remind them what else they can offer. Here’s the key: your staff doesn’t need to be experts in the other products or services they offer to customers. They simply need to offer the products or services, and if there’s interest, they can connect them to the appropriate experts. Remind your people how good they are. Systematically communicate what else they can offer your customers. Help them sell more by communicating with them more. Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com Building-Products.com

TRANSFORMING Teams By Claudia St. John

The tricky landscape of medical marijuana I

RECEIVED A CALL from a client two weeks ago who was struggling with a tricky personnel issue on the topic of drug testing. Bob, who owns a company in Vermont and has a policy of mandatory drug testing for all new hires, wanted to hire a new shift manager for his small manufacturing plant. The problem was that the highly-qualified man he wanted to hire has a medical marijuana prescription to treat his PTSD. Bob’s questions were these: “Can I make an exception and not drug test him? If I drug test him, can I overlook the flag for positive marijuana use? If I overlook his use, what do I do about other future hires? Do I have to pass on him as a candidate because of his legally-prescribed drug use?” Bob’s dilemma is increasingly common as states and local jurisdictions move to legalize pot. To date, 29 states and the District of Columbia have passed measures to legalize medical marijuana use, while eight states and the District of Columbia have legalized recreational use. To make matters even more complicated, marijuana remains a Federal Schedule 1 Controlled Substance—the most tightly restricted category of substance. Thus, for many employers, all this creates a point of conflict between federal law, state law, and their own company policies. And that’s not the end of it.

Zero-Tolerance Workplaces For employers seeking to maintain a zero-tolerance, drug-free workplace, navigating these conflicting requirements just got more complex given a recent high-court ruling in Massachusetts. In the case, on July 17 the state Supreme Judicial Court ruled that Advantage Sales & Marketing LLC, which fired new employee Cristina Barbuto after her pre-employment drug screening showed positive for marijuana use, could be sued under federal handicap discrimination statutes. Ms. Barbuto suffered from Crohn’s disease and used medical marijuana to stimulate her appetite, according to court documents. The court ruled that allowing off-duty medical marijuana use constituted a reasonable accommodation for Barbuto’s disability. So, for employers in Massachusetts, the decision has the following impact:

Building Products Digest

September 2017

• They may not adopt a “zero-tolerance” prohibition of pot use and must instead attempt to accommodate use that is: (1) offsite and (2) certified as medically necessary. • They may not terminate or discipline employees solely because of their offsite medical marijuana use. • They may restrict onsite medical pot use and do not (yet) need to accommodate offsite recreational use. While this decision pertains to employers in Massachusetts specifically, all employers should take note because there is a growing trend within the courts toward protecting the offsite legal use of medical marijuana. For example, in May of this year, a Rhode Island court ruled that employers may not discriminate against individuals based on their off-work pot use. Another test will be how the courts view Florida’s new bill that attempts to protect employers who wish to maintain a drug-free workplace by specifically stating that they do not need to accommodate the medical use of medical marijuana. That statute is certain to face a court challenge. For employers that wish to maintain a drug-free workplace, it’s best to be mindful of the court cases in your state and be sure to craft a clear policy that does not intend to discriminate against individuals based on their disability. And employers who choose to deny employment or to disBuilding-Products.com

cipline or terminate employees based on their medical marijuana use are strongly encouraged to seek counsel prior to taking action.

Accommodating Medical Marijuana Use For employers that decide to accept their employees’ use of medical marijuana, they should: • Create a well-crafted policy that clearly articulates what use is allowed and in what form, when use is authorized (before or after work), whether there are safety sensitive positions that require special consideration, what medical documentation is required, and a clear statement that the policy is not intended to discriminate against individuals with disabilities.

Q. With Labor Day right around the corner, we have decided to keep the business open on the holiday. Do I have to pay a premium for employees who are scheduled to work? A. There is no obligation under federal or state law to pay premium pay for holidays. Of course, you are obligated to pay overtime for any hours in excess of 40 hours in the workweek, but premium pay is not statutorily required. Therefore, your decision should largely be guided by your existing holiday pay policy, if one exists. If one doesn’t exist, realize that how you handle this situation may set precedence for future working holidays, so make your decision with that in mind. • Require written approval from the prescribing doctor that includes the legal validation, medical basis, schedule of use, methods of administration, accommodations or restrictions, and expected length of use. • Require employees who are certified to use medical marijuana to report any changes in the marijuana product they use, the amount of marijuana they are prescribed, how often they use it, their schedule of use, and how they ingest the drug.

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• Prohibit marijuana use while an employee is at work (or on the way to or from a job site) unless the employer is certain that the using worker, co-workers, or the public are not at risk from any neurocognitive and judgment impairment associated with that worker’s marijuana use.

Mandatory Drug Testing Given the quickly evolving landscape of legal and medical marijuana use, employers should be mindful about instituting mandatory drug testing of pot. As was the case in Massachusetts’ Advantage Sales & Marketing case, denying employment to individuals using medical marijuana can leave you vulnerable to a claim of discrimination. Some employers within states with legal recreational and medical marijuana have simply dropped the drug from the screening panel. Employers who maintain marijuana on their drug screening panel are wise to treat positive marijuana test results with care—rather than enforcing an automatic denial of employment, discuss the results with the employee, seek to understand the nature of the individual’s use and consider whether an accommodation is justified.

Safe Workplaces Finally, no statute or state laws require an employer to tolerate intoxication or impairment while on the job, particularly if that impairment can result in injury or harm to the company or its employees. Just as you would do for someone taking legally prescribed pain killers, if you suspect impairment, be sure to release the employee from work until he or she is no longer impaired, obtain the necessary documentation for the prescribed medication, and ensure the employee’s use is appropriate and conforms to your drug policy.

Claudia St. John Affinity HR Group, Inc. claudia@affinityhrgroup.com

September 2017

Building Products Digest

Century-Old NC Yard Closing Brinkley Lumber Co., Rutherford, N.C., is closing its doors this month after 100 years. John Brinkley Jr., who joined the company in 1949, and his son, John Brinkley III, who started in the 1960s, are ready to retire.

McCoy’s Purchases Reload McCoy’s Building Supply, San Marcos, Tx., has purchased the former C-R Reload Center, Burnet, Tx. C-R Reload had provided reload and lumber storage services for McCoy’s and other Central Texas customers since 2002. Under McCoy’s ownership, the facility will operate as MC Reload, with a focus on reducing costs and adding distribution efficiencies to a majority of McCoy’s stores in Texas and their customers. It will also provide reload and storage services to third-party users. The purchase includes the existing seven acre rail-served facility with rail capacity for 14 center beam rail cars, as well as the acquisition of an additional 30 acres which will be developed to substantially increase the facility’s distribution and reload capacity. McCoy’s has increased its truck fleet to improve delivery efficiencies to each of their store locations served by the distribution facility. The facility is served by Austin Western Railroad with rail access to BNSF and Union Pacific railroads.

Ohio Yard Adding Showroom Henry Lumber Co., Marion, Oh., has purchased a storefront downtown where it will open a retail showroom by spring 2018—just in time for the company’s 60th anniversary. The company has wanted to expand beyond commodities for several years, but found its current location less than

ideal for appealing to consumers, considering its proximity to railroad tracks and its lack of space for displays. Henry paid $125,000 for the new building.

Deal Gives Trex Entry into Commercial Market Trex Co., Winchester, Va., has acquired the assets of Brooklyn Park, Mn.-based SC Company, the country’s leading manufacturer and supplier of custom architectural railings and staging solutions. The purchase expands Trex’s reach into the growing commercial arena and serves as the foundation for the launch of its Trex Commercial Products subsidiary. “We have been eyeing the commercial market for some time and are thrilled to have found an ideal entryway with SC Company,” said Trex CEO/president James Cline. “Beyond diversifying our business, this acquisition increases our internal capabilities with custom design and engineering, while also providing us access to— and credibility within—the contract architect and specifier community. Additionally, we foresee exciting synergies for further strengthening our position in the residential market.” Founded in 1990, SC has two successful product categories: SC Railing and Staging Concepts. SC Railing custom-designs engineered railings for stadiums and arenas, as well as more standardized architectural and aluminum systems for commercial and high-rise applications. Staging Concepts supplies staging equipment for the global performing arts, sports and event production markets. Trex Commercial Products will operate out of SC’s existing facilities in Brooklyn Park and Fort Mill, S.C.

DEALER Briefs Hilltop Lumber held a grand opening Aug. 11-12 at its bigger new store in Ottertail, Mn. The old location next door is now a storage warehouse. Coligny True Value Hardware has moved to a new space on Hilton Head Island, S.C.

Weakley-Watson Hardware, Brownwood, Tx., has switched from True Value to Ace affiliation under new owner Weston Jacobs. ABC Supply is opening a 36,300-sq. ft. branch in Scranton, Pa. Lowe’s opened a 70,000-sq. ft. store July 14 in Yonkers, N.Y. (Wesley Pence, general mgr.). Home Depot will close its East Meadow, N.Y., store Sept. 13, a day before opening a new location three miles away in Levittown, N.Y. Menards revived plans, shelved twice over the last two years, to build in Florence Heights, Ky. Construction could start as soon as the spring. The chain also broke ground on a 172,740-sq. ft. store with a 46,780-sq. ft. and 27,600-sq. ft. shed in Cuyahoga Falls, Oh., for a 2018 opening. Also planned is a 251,925-sq. ft. store in Columbus, Oh. Habitat for Humanity is closing its ReStore in Martinsburg, W.V., Aug. 4, but hopes to reopen in a new location in the spring. Its Newport News, Va., ReStore is moving to a larger, 23,000-sq. ft. space at the former site of Frank’s Nursery.

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Building Products Digest

September 2017

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West Fraser Acquiring Gilman North America’s largest producer of softwood lumber is getting even bigger with West Fraser Timber Co.’s planned purchase of the Gilman Companies, St. Marys, Ga. The deal, expected to close in third quarter 2017, will give Vancouver, B.C.-based West Fraser six more southern yellow pine sawmills and a fingerjoint plant in Florida and Georgia. The operations employ roughly 900 workers and have a combined annual production capacity of 700 million bd. ft. of lumber. West Fraser’s total annual capacity will increase to 7.2 billion bd. ft.—43% of which will be in the U.S. The company agreed to pay the Howard Gilman Foundation and other shareholders approximately $430 million.

Lansing Lumberyard Liquidates Hazen Lumber, Lansing, Mi., is liquidating after 77 years, so co-owners Morrie Smith and Eric Doll can retire. The sale will last until all inventory is gone. The 50,000sq. ft. building is also for sale. The partners both joined the business in 1966 and acquired it in 1982.

Rugby Buys Downes & Reader Rugby Architectural Building Products has purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Co., Stoughton, Ma., for $6 million. Formed in 1973 by Ed Downes and Rod Reader, D&R generates annual sales of $25 mllion from its wholesale branches in Stoughton; Gorham, Me.; and Milford, Ct.; and

its retail showroom in Stoughton. All locations will now operate under the Rugby name. “This acquisition provides us with turnkey access to a comprehensive lumber products offering in the U.S. Northeast, brings us a significant number of new customers, and is immediately accretive to shareholders,” noted Rob Brown, president/CEO of parent Hardwoods Distribution. “We have been successful with our acquisition strategy, having now completed six acquisitions in the last six years, and we will continue to pursue transactions that complement our internal growth strategies.”

Austrian Particleboard Maker Coming to US Austria-based Egger Wood Products will build a new 4.5-million-sq. ft. particleboard plant on 200 acres in Lexington, N.C.—its first manufacturing operation in the U.S. Egger expects to spend $300 million on and be employing 400 at the site by 2020, by the completion of phase one. After three phases and 15 years, total investment should be $700 million and the workforce up to 770. “Having our own production facility in North America is vital for Egger to tap into the market and become a significant player for the growing demand in the U.S for wood-based materials,” said chief technology officer Walter Schiegl. “Our sales activities in the U.S. have already proved our product range is highly attractive for architects, designers, wholesalers and industry customers.”

SUPPLIER Briefs SRS Distribution, McKinney, Tx., purchased 55-yearold National Building Supply Corp ., Belleville, Roselle and Dover, N.J. Computer Associates, Smithfield, R.I., has acquired MultiProcess Computer Corp ., Windham, N.H., provider of DataView Records Management System enterprise document archiving and retrieval solution.

Boise Cascade is now exclusive distributor of Trim Solutions’ QuickTrim System in the Northeast, from its DCs in Westfield, Ma., and Greenland, N.H.

Hood Distribution, Mobile, Al., is now distributing Chelsea Building Products’ Everlast composite siding throughout the Southeast. Hood has been carrying the product in the Northeast since late last year.

RoyOMartin’s forestry team has completed 10 years without an OSHA-recordable injury. Hixson Lumber Sales, Pine Bluff, Ar., earned a 10Year Accumulative Safety Award from the Arkansas Department of Labor. ARAUCO North America, Atlanta, Ga., is celebrating 20 years of selling AraucoPly in North America. Anniversaries: El Ks., 20th.

Building Products Digest

September 2017

Dorado Ace Hardware, El Dorado,

Building-

Associations CSA, OLA to Merge The boards of the Oklahoma Lumbermen’s Association and the Construction Suppliers Association voted Aug. 15 to merge, effective Jan. 1, 2018. The combined group will cover Alabama, Georgia, Louisiana, Mississippi and Oklahoma. Both CSA and OLA serve independent lumber dealers. Industry consolidation has led several groups to merge in the past five years to maintain critical mass of members to support programs and services, including the Midsouth Building Material Dealers Association joining CSA in 2014. The merged group will retain the CSA name, and the headquarters will remain in suburban Atlanta, Ga. A satellite office will be maintained in Oklahoma City, Ok., and OLA’s executive director, Karen Baker, will serve on the CSA staff as Oklahoma regional director. Key programs and services provided by OLA, including a full government affairs program, will continue. Oklahoma dealers will gain the ability to participate in CSA

HOOD LUMBER

programs, such as roundtables, safety and DOT consulting, HR consulting, and other educational opportunities. Associate members will now have access to more dealers in five states, while only paying dues to one organization. “We believe this merger opens new opportunities for Oklahoma dealers,” said Sean Stevens, president of OLA. “We honor the 70-year history of OLA by continuing all of the great services Oklahoma dealers have come to appreciate, while giving them access to some great new programs that can really make a difference in their profitability.” OLA members will have an opportunity to learn more about the merger, ask questions, and meet the CSA staff at informational sessions in Oklahoma City and Tulsa, Ok., in October.

Westlake Adding 2 More Stores Westlake Ace Hardware, Kansas City, Mo., is growing in Wichita, Ks., and Princeton, Tx. The chain has finalized acquisition of Indian Hills Ace Hardware, Wichita, Ks. Westlake expects a seamless transition of ownership and the store will retain the Indian Hills Ace name. General manager Wayne Butterfield will remain at the store, and personnel and operations will not be affected. With the purchase, Westlake now operates 101 retail hardware locations in the U.S. and six in the Wichita area. The number will increase again later this month when Westlake opens an 11,900-sq. ft. leased location in Princeton, its 12th in Texas. David Welch, currently general manager in Lewisville, Tx., will become GM of the new store.

Kight Adding Manufacturing

Silver Creek, MS

Metcalf, GA Waynesboro, MS Bogalusa, LA

Carter Lumber will add a manufacturing facility to its Kight Home Center in Bowling Green, Ky., to produce trusses, wall panels, and engineered wood products. Construction of the $10-million, 70,000-sq. ft. facility is expected to begin near the end of the year, in time for a 2018 start-up with approximately 50 employees.

LP to Buy International Barrier

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

September 2017

Louisiana-Pacific, Nashville, Tn., has agreed to acquire International Barrier Technology, Watkins, Mn., for $22 million. Barrier, which makes the fire retardant coating used in LP FlameBlock fire-rated products, will operate as a wholly owned subsidiary of LP, as part of its OSB business. LP CEO Brad Southern said the trend for more fire resistance in residential and commercial buildings continues to escalate, driven by changing building codes and their enforcement. “Over the last seven years we have validated the market acceptance of the FlameBlock brand and demonstrated strong sales growth,” he said. “Flame retardant products are a key development target of our growth and innovation plans.” The deal, expected to close by the end of the year, is subject to the shareholder and court approval.

Atlanta Post Caps Extends Deal Atlanta Post Caps, Decatur, Ga., has renewed its deal to have Tech Mold manufacture its patented post caps. The firm specializes in ASA resin fence post caps that are guaranteed to outlast comparable wooden products. Building-Products.com

Everything We Need Orgill’s Product Selection Was Exactly What We Were Looking For!

“When we considered switching distributors, we were looking at who could provide us with the product selection and level of stock fulfillment we knew we needed. Orgill was absolutely the best fit for us.” Philip Chapman, Kate Borroni and Stu Chapman l Woodson Lumber, Caldwell, Texas l An Orgill customer since 2014 Providing a Strong Product Selection

Using Orgill’s Programs

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“We are constantly working to expand our product selection.

our product selection and ensure we are providing the most

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in our seven locations. These programs keep us on top of comprehensive offering for our customers. ”

Right now, we are focused on enhancing our indoor and help us reset and update these categories.”

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send a handful of folks on our team. It’s the best place to see product lines.”

provide them to us quickly and efficiently. Their customer with that same high level of service.”

For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140

THINKING Ahead By Steve Cheatham, Everwood Treatment Co.; Warren Reeves, Wholesale Wood Products; and Devin Stuart, Roseburg Forest Products

Technology: Relationship killer? P

I of our discussion on relationship-based business explained the benefits of nurturing a personal connection with key buyers or sellers. While suppliers and distributors of wood products have long embraced this style of workplace courtship, the industry is graying and times are changing. The question now becomes whether a younger workforce—and its strong attachment to all things cyber—will reverse a time-honored trend and put relationships on the rocks. ART

Don’t Email Me, I’ll Email You Email alone might test the fidelity of some old-school believers in relationships. Why put all that energy and effort into maintaining personal ties to a partner when you can reach out to the masses with a single communication and secure a deal for the lowest price with a simple click or tap? Because when you do, you lose that high touch that customers value—that’s why! Relationships are built on the Internet… said no businessperson ever. And that’s why taking the easy way out with email just doesn’t happen with a lot of us, as tempting as it might be for some. Even if the digital trend picked up more momentum, the push-back against it would probably

Building Products Digest

grow, too. The industry players that continue to pick up the phone or meet in person to do business might even win favor over their impersonal, faceless competitors.

Good Relationships Start with Being “Friends” That being said, it’s fair to say the online movement is unlikely to completely stamp out relationships in our sector. In fact, it could even enhance them to some extent. Social media, for example, holds great promise for expanding and deepening relationships, particularly when used in combination with old-fashioned relationship-building. A distribution

September 2017

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

Building-Products.com

A Special Series from North American Wholesale Lumber Association

sales manager who is Facebook friends with a vendor representative has a wide-open window into that individual’s personal life—and an invitation to comment on it. The medium, along with others like Twitter and Instagram, can unlock myriad opportunities to interact, congratulate, recommend, and share on a one-on-one basis! Social media also can play a role at the company level, although the approach would be entirely different. In that case, the aim might be to engage with and build a relationship with end users. It’s well documented, for instance, that some Millennials shun traditional advertising, preferring instead to base their purchasing decisions on what they know about a company and the products it sells. Savvy businesspeople realize that social media accounts offer an ideal way to educate this generation on a company’s identity and values. Through it, businesses will find yet another avenue to reach downstream and further those relationships.

The Bottom Line The decision on how to use email, text, and social media should hinge, of course, on the individual personal-

ities and preferences of the key people you work with. Everyone’s comfort level with technology varies, with a small band of holdouts still using fax instead of email. Others may not know a Tweet from a pin. A few don’t even own a cell phone, while others maintain running text conversations—both personal and professional in nature—with their business partners. The bottom line is that relationships are sticking around, but advances in technology can hurt or help them depending on how they are utilized. Suppliers and distributors who figure out where their contacts stand in terms of technology and tailor their outreach strategies around that will continue to cultivate successful and long-lasting relationships even in the face of innovation. – Steve Cheatham is sales manager for Everwood Treatment Co., Spanish Fort, Al., and a member of NAWLA’s marketing committee. Devin Stuart is marketing product manager for Roseburg Forest Products, Springfield, Or., and also on NAWLA’s marekting committee. Warren Reeves is vice president of sales & marketing at Wholesale Wood Products, Dothan, Al., and a member of NAWLA’s board of directors.

Outside Perspectives Marketing, branding and social media experts have written extensively about customer relationships and how to nurture them. A Forbes article by Dorie Clark, “4 Ways to Build Meaningful Business Relationships,” elaborates on some of the points made above about one-on-one communications via social platforms. In the March 2014 piece, the Duke University instructor and marketing strategist relays the advice conveyed to her by Mike Muhney, author of Who’s in Your Orbit? Beyond Facebook—Creating Relationships That Matter. Known for creating one of the first and most popular contact management systems, Muhney emphasizes that just having a Facebook page and occasionally updating the status is inadequate. The importance of individual conversations on social media simply cannot be underestimated, just as they should not be overlooked in face-to-face situations. “People think they’re staying in touch with everybody via postings, and it’s not true,” he explains. “You have to have a segment you focus on [in your networking].” At the same time, Muhney cautions against hooking up with every suitor that reaches out on sites like LinkedIn. That’s not “true” networking, he notes, comparing it instead to “relational voyeurism.” Racking up a bunch of connections with unknown individuals isn’t likely to be productive, according to Muhney, who says that businesspersons will not successfully tap into the full potential of their networks until they peel away

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all the layers to reveal the contacts who are well-known and trusted—and target them exclusively. In terms of leveraging social media for business-to-consumer purposes, another Forbes contributor captures the perspective of young entrepreneurs in his December 2012 article. “5 Ways Social Media Takes Customer Relationships to the Next Level” offers tips to help companies connect with customers and influence their buying decisions. Among those gems, the piece—written by Dave Kerpen, author of Likeable Social Media—recommends that businesses take the “social” part seriously. Besides extending excellent service, he stresses these sites have the potential to inspire and bring together people for a common purpose. Even in this kind of scenario, Kerpen says, businesses should consider “how can you connect your audience and strengthen your relationship?” The co-founder and CEO of the social media agency Likeable, he also suggests putting the focus on the customer rather than the product; accepting all opportunities to garner feedback, such as through crowdsourcing; and making it easy for customers to relay their experience. Kerpen singles out Facebook’s “Share Your Story” app as one way to accomplish the later. “When your customers are happy, your business will be too—so find a way to let people feel good and share their story about how your brand makes a difference in their lives,” he concludes.

September 2017

Building Products Digest

NELMA SPECIAL ISSUE

Color me happy: NELMA releases 2017 Grade Rule Book

T’S HERE!

It’s here! The next edition of Standard Grading Rules for Northeastern Lumber has been published by NELMA. NELMA is one of six rules writing agencies in the U.S. and Canada accredited by the American Lumber Standard Committee to write grade rules that are certified as conforming to the American Softwood Lumber Standard PS20. Standard Grading Rules for

Northeastern Lumber is provided to the industry as a definitive guide to understanding the various grades of lumber and timbers produced from wood species grown in the northeast and great lakes regions of the United States. Informative sections highlight species, moisture content, special board grades, National Grading Rules (NGR), design values, and much more. A glossary provides easy explanation of terms and abbreviations used throughout the 250+ page book.

New for 2017

AVAILABLE this fall, the 2017 edition of Standard Grading Rules for Northeastern Lumber from NELMA includes loads of new information.

Building Products Digest

The 2017 edition breaks away from the pack with several new changes, including: • Color photographs to explain instructions for applying the rules to the grading of eastern white pine. “What was once a separate document is now included in the book to provide as much relevant, helpful information in one location as possible,” said Jeff Easterling, president of NELMA. “Color photos highlight various wood characteristics important to the specific interpretations that determine the lumber grade; this is taking information sharing to an entirely new level.” • Norway spruce, recognized and approved by the ALSC for construction use in October 2016, is added to the approved species list for the first time. • Species and grades from the Northern Softwood Lumber Bureau’s Standard Grading Rules, which merged into NELMA in January 2017, are now incorporated within this new edition. September 2017

FOR THE FIRST time, color photography appears in the grade rule book, clearly and concisely explaining instructions for applying the rules to the grading of eastern white pine.

• Interpretations to the National Grading Rule, with specific instructions for applying the rules to construction grades, are now included within a separate section of the book. The 2017 edition of Standard Grading Rules for Northeastern Lumber is available fall 2017 from NELMA. As with past editions, a free download of each section will be available online at www.nelma.org, or a print copy may be requested for purchase by contacting NELMA at (207) 829-6901. Building-Products.com

NELMA SPECIAL ISSUE

After the merger: Process, progress and red pine promotion opportunities

UCCESSFUL MERGERS ,

like marriages, take lots of work and planning. When the Northern Softwood Lumber Bureau merged with the Northeastern Lumber Manufacturers Association in January 2017, many i’s and t’s had already been dotted and crossed in the months and years prior, paving the way for a positive, strong future for the wood industry from the northeast to the Great Lakes. “We’ve spent years building a relationship together, and it was paramount to both sides that this transition be as seamless and collaborative as possible,” noted Jeff Easterling, president of NELMA. “Our goals were common ones: heightened efficiency as one association, the ability to speak with a unified voice for the Northeastern/Great Lakes lumber industry, and stronger member representation across the board.”

Laying the Groundwork According to an online article from The Forbes Group, a Virginia-based management group, one of the most important primary steps to take when considering a merger is to form joint ventures by finding a way to work together ahead of the merger to ease the process when the time comes. “Since NELMA has provided inspection services for NSLB since 1985, we’re old friends,” commented Easterling. “There’s no doubt that our shared history made the merger that much easier.”

Communicate, Communicate, Communicate Once the merger was official, NELMA staff jumped into action updating informational tools to ensure

Building Products Digest

Softwood Lumber Bureau and the many ways the organization has positively impacted the Great Lakes area of the country; • A Red Pine Subcommittee was created, and the first meeting was held in April 2017. Discussed at the meeting: a complete review of the current NELMA marketing plan and ways in which red pine can be incorporated into existing activities; brainstorming on new marketing and public relations opportunities for red pine; and how to expand existing NELMA printed and online materials to include and promote the new members;

Onward and Upward RED PINE is the primary construction material throughout the Great Lakes region of the U.S. and is perfect for outdoor decking and other treated product applications.

that all NELMA members were represented to the fullest extent: • NELMA’s online directory and product locator has been updated to maximize immediate exposure to potential customers searching for softwood lumber products; • A brand-new, updated Buyers’ Guide + Membership Directory for 2017-2018 has been published. Each NELMA member mill—including all mills formerly part of NSLB—has one page chock-full of information; • The Standard Grading Rules for Northeastern Lumber now includes grades and species that were unique to the Great Lakes region, published in the 2017 edition; • Preserving history, a page attached to www.nelma.org focuses on the extensive history of the Northern September 2017

Integrating NSLB members, species, and goals into those of NELMA has been a fruitful process, according to Easterling. Now that the precedent-setting merger is in the rearview mirror, he sees continued success and sparkling innovation ahead for the association. Already on the table: two strong potential product donation opportunities for red pine with popular DIY television shows. “We’ve created an even stronger association for the representation and promotion of northern softwood species, lumber commerce, and standards that built much of this great nation,” concluded Easterling. “With the expanded geographic footprint provided by this merger, the influence of the wood industry on key issues is expanded and deepened, which will benefit the industry as a whole. New members bring added experience and knowledge to the table, and we are ready to move forward to increase marketing efforts and our overall online presence together.” Building-Products.com

NELMA SPECIAL ISSUE

Norway spruce, one year later I

N OCTOBER 2016, history was made: shepherded by the Northeastern Lumber Manufacturers Association, Norway spruce was approved for and added to the SPFs species grouping for grade stamping. This marks the first time a new, major, U.S.-grown softwood species had been fully tested for strength values since the initial process for assigning design values by way of lumber testing of wood samples began in the 1920s. While Norway spruce in tree form is easily recognizable by its large, drooping “branchlets,” Norway spruce in dimension lumber form is indistinguishable from native eastern spruce species. Word on the street is that even the most experienced of graders cannot discern the difference between the two species.

What’s Happened Since October 2016?

NORWAY SPRUCE, plenteous in New England, is recognizable by its drooping “branchlets.”

Building Products Digest

September 2017

Quite a bit! Let’s take a look and see how various members of the chain have been affected by this once-in-alifetime event. Landowners/loggers: According to Jason Brochu, co-president of Pleasant River Lumber in Dover-Foxcroft, Me., both loggers and landowners are very appreciative that the need to identify and remove Norway spruce from their wood basket (due to its previous notyet-approved status) has been eliminated. “Not having to identify it and separate it leads to a much more fluid system,” said Brochu. Dealers/Retailers: As predicted, dealers and retailers haven’t seen Building-Products.com

much difference whatsoever, since Norway spruce was folded into the SPFs grouping. If anything, increased availability is the trend. And a new species to geek out about. Mills: NELMA member mills are where the rubber meets the road. Jeff Easterling, president of NELMA, said it best: “The addition of Norway spruce to mill resource availability is extraordinary, in that it’s rare when a project like this offers immediate benefits to the industry.” “Immediately following the approval of Norway spruce, we fenced in five log yards in New York,” said Jethro Poulin, sales manager of Milan Lumber in Milan, N.H. “The increase in production was instant, and Norway spruce has proven to be a very good fiber source for us.” “As soon as it was approved, we told suppliers to start cutting it,” added Brochu. “Norway spruce has expanded our wood basket and opened up new areas where we weren’t able to buy wood before.” Both Brochu and Poulin agree that the cumulative impact to their businesses will take place over time.

THE APPROVAL and addition of Norway spruce to SPFs has increased the size of the wood basket serviced by Milan Lumber in Milan, N.H.

“Norway spruce is very much folding into SPFs the way it’s supposed to, but it’s also upping our production: we’re procuring more logs, and they are very high-quality,” said Poulin. “It’s a process,” said Brochu. “The

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wood supply is very good, and we expect the impact to be large over the long term. We’re looking forward to a steady diet of Norway spruce.” For more on Norway spruce, visit www.nelma.org/norwayspruce.

Manufacturers of Quality

Eastern White Pine

• Producing 18 million bd. ft. annually • Weinig Waco maxi planer specializes in pattern stock • 10 USNR dry kilns – total capacity 430,000 bd. ft. • All shipments via truck or van are paper wrapped • Marketing throughout the U.S. and Canada via Wholesale & Wholesale Distributors

Sales: Win Smith, Jr. win@limingtonlumber.com (207) 625-3286 • Fax (207) 625-7399 www.limingtonlumber.com

September 2017

Building Products Digest

NELMA SPECIAL ISSUE

Choose Door #4! “B

UT WHAT WILL this wood look like in MY home?” If this question has ever frustrated you, it’s time to visit www.easternwhitepine.org and click on Virtual Tour. Launched in 2014, the NELMA Virtual Tour opens the door to end users with a unique, first-of-its-kind peek into exactly how wood looks inside a variety of homes. Using the familiar realtor 360° camera, users can direct themselves to in-depth looks at the walls, ceilings, and floors of a room covered in beautiful eastern white pine. Designed to spark inspiration and imagination, the high-res photography couples with the self-navigation option to provide a user-driven education and experience into the many grades, dimensions, and overall look of eastern white pine. Colorful product icons scattered throughout each room inform the viewer of actual grade, pattern, and finish used. The first three “doors” offered by NELMA have featured beautiful resi-

THERE’S A NEW DOOR in town! Visitors to easternwhitepine.org love the addition of a fourth door to the popular Virtual Tour element of the informative site. The Horse Barn door is the first to focus on a commercial project.

Building Products Digest

EASTERN WHITE pine was used heavily throughout the renovation and expansion of an indoor riding arena at Full Circle Farm in New Hampshire. As the newest door on the NELMA Virtual Tour, colorful icons offer users information regarding size and finish of wood used.

dential applications of varying styles. The brand-new Door #4 ventures into commercial construction territory.

Full Circle Farm New Hampshire’s Connecticut River Valley is known for its lush beauty and oneness with nature. Full Circle Farm has been in business there since December 2013, and has become well-known as a successful riding facility. In 2011, the farm changed ownership and the new proprietor launched his vision of expanding existing services to include a therapeutic riding program. Key to progress was a renovation and addition to an existing indoor riding arena. The 180x80 structure needed lifts, waiting areas, space for guest to tack horses in the same barn in which they would ride, and additional elements to allow the therapeutic riding program to expand. A brand-new wooden lift and ramp were constructed, allowing riders to mount their horses with ease, while friends and family observe the action from a beauSeptember 2017

tiful observation deck with plenty of seating and unobstructed views. The MVP of the new construction? Eastern white pine, specifically New Hampshire-based Durgin & Crowell’s Enhance product. Pre-coated, UVcured eastern white pine paneling brought the warmth of wood to a beautiful setting along with comfort, safety, practicality, and affordability.

Door #4 Click on Door #4 and step inside the renovated indoor riding arena at Full Circle Farm! Approximately 12,000 bd. ft. of 1x6 premium eastern white pine went into the renovation, and it’s breathtakingly beautiful. “Showcasing a commercial project was very important to us, since the popularity of eastern white pine in commercial construction is growing every year,” said Jeff Easterling, president of NELMA. “We tend to think of wood as a residential material, but Full Circle Farm proves that wood can more than hold it’s own in industrial applications.” Building-Products.com

Chris LaCourse Sales Associate “The New Guy”

Building-Products.com

September 2017

Building Products Digest

NELMA SPECIAL ISSUE

Rebuilding Tennessee T

HE FIRE STARTED inside the Great Smoky Mountains National Park in late November 2016. Driven by wind, it spread quickly throughout Sevier County, targeting the popular tourist town of Gatlinburg and neighboring Pigeon Forge. By the time the massive network of fires had been extinguished, more than 2,400 structures were destroyed and 14 people had lost their lives. The area was declared a federal disaster area on Dec. 15, 2016, with the total cost of damages exceeding one billion dollars. The 2016 Great Smoky Mountains wildfires is one of the largest natural disasters in the history of Tennessee. In the days and weeks that followed, help poured in from around the country. â&#x20AC;&#x153;Smoky Mountain girlâ&#x20AC;? Dolly Parton, well-loved by residents in her home of Sevier County, hosted a telethon that raised more than $10 million. She founded the My People Fund, which made an extraordinary

EASTERN WHITE pine from Diprizio Pine Sales leaves the Tindell's lot, bound for the rebuilding of East Tennessee following the devastating fires of 2016.

promise: renters and homeowners who had lost their primary residence in the fires would receive $1,000 a month for five months to get them

back on their feet. When the time came for the final payment, a $5,000 bonus was given to each and every family.

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Building Products Digest

September 2017

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The Road to Recovery Tindellâ&#x20AC;&#x2122;s Building Materials, headquartered in Knoxville, Tn., is a family-owned building material dealer celebrating its 125th anniversary this year. Employees in their Sevierville location, opened in 1996, immediately jumped in to help their neighbors recover and rebuild. The company provided a staging area for first responders to store water and emergency supplies, and also contributed to the My People Fund. â&#x20AC;&#x153;In a situation like this, itâ&#x20AC;&#x2122;s not about business or the bottom line,â&#x20AC;? said Ike Padgett, vice president of purchasing for Tindellâ&#x20AC;&#x2122;s. â&#x20AC;&#x153;We are grateful and glad to be able to help rebuild the area in as many ways as we can. Itâ&#x20AC;&#x2122;s what you do for your neighbors.â&#x20AC;?

Rebuilding with Eastern White Pine Many of the lost structures were cabins and time share units, integral to the economic tourism dollars needed for recovery. One Gatlinburg timeshare resort (a 15-year Tindellâ&#x20AC;&#x2122;s customer) lost 90 of its 100 structures to the fires. Following the fires, builders sat down with Tindellâ&#x20AC;&#x2122;s to create a plan and timetable for rebuilding. Building product choice was a big decision: eastern white pine was a significant part of many of the lost buildings. Nelson Calfee, log specialist for Tindellâ&#x20AC;&#x2122;s in Sevierville, works closely with builders to select products and patterns to best fit their needs. He reports that eastern white pine has become the standard in the market: â&#x20AC;&#x153;Not only did people use it the first time, theyâ&#x20AC;&#x2122;re choosing to rebuild with it, which really tells you something. Weâ&#x20AC;&#x2122;ve tried different species in the past, but the eastern white pine look is the most popular in the area; itâ&#x20AC;&#x2122;s what the builders love to work with.â&#x20AC;? The Gatlinburg timeshare development is rebuilding using eastern white pine log siding on the outside of their cabins, while another development has ordered hundreds of thousands of board feet of the species for the inside of their properties. Scott Brown with DiPrizio Pine Sales in Middleton, N.H., supplies Tindellâ&#x20AC;&#x2122;s with their eastern white pine. He notes that the most popular products are 1x8 edge-and-center bead for interior appearance applicaBuilding-Products.com

Looking Ahead

tions, 1x12 pattern siding, and various trim board with striated face. Jeff Easterling, president of the Northeastern Lumber Manufacturers Association (NELMA), the grading authority and marketing body for eastern white pine, notes that his members canâ&#x20AC;&#x2122;t deliver enough pattern stock to Tennessee to meet orders. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s flying out the door, and our members are thrilled to be able to help rebuild such a special area of the country.â&#x20AC;?

Called â&#x20AC;&#x153;Mountain Toughâ&#x20AC;? by the Gatlinburg mayor, the people of Sevier County regularly host 12 million visitors annually as people travel from around the world to experience the National Park, Gatlinburg, Pigeon Forge, and Dolly Partonâ&#x20AC;&#x2122;s Dollywood theme park. While both tourism and the economic impact it brings took an extensive hit in the months following the fires, tourist revenue is expected to be up 3% overall in 2017 over 2016.

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September 2017

Building Products Digest

NELMA SPECIAL ISSUE

Innovative marketing:

What’s next? K

EEPING IT FRESH and innovative, watch for two exciting new items from NELMA in the coming months: Swatch Video. NELMA’s handheld photo swatch, modeled after a fan-style paint swatchbook, features photographs and information on the various grades of eastern white pine. Introduced in 2008, the swatch immediately shot to the top of the items-requested chart, and has remained one of the most popular sales tools offered by the association. Building on the success of the swatch, coming soon is a video version, specifically targeted to export markets but also designed to be a valuable sales tool for the association members’ domestic customers. Featuring a greater variety of boards within each grade of eastern white pine for viewing, coupled with informative call-outs and pop-ups, the Swatch Video will enhance the way lumber is sold. Grader Academy 400 Series. Launched in April of 2014, NELMA’s Grader Academy has had more than 300 qualified industry members use all or part of the 18 courses presented under three levels of instruction to better understand the grades of eastern white pine. Coming this fall: the culmination of the eastern white pine portion of the Academy, the 400 Series. Lovingly called “build-a-board” by NELMA staff, individuals will be tasked to apply the entire body of grading

Building Products Digest

September 2017

BRAND NEW Swatch Video from NELMA brings color wood photographs to life and will serve as an important tool for both export markets and members’ domestic customers.

knowledge gained in the previous courses to complete the section. Starting with a characteristic-free board and a palette of defects, the challenge will be to choose the maximum amount of defects presented to produce the grade requested. In less than 60 seconds. Think you’re up to the challenge? Take the 400 series and see for yourself!

Building-Products.com

MOVERS & Shakers Alex Averitt has been named the next CEO and president of Cedar Creek, Oklahoma City, Ok., effective Sept. 15. He will succeed D. Wayne Trousdale, who will become executive chairman. Bill Adams will retire from the nonexecutive chairman position, but stay on the board. Jim Shalvoy has retired after 38 years in the industry, the last seven as VP-marketing with Cedar Creek. George Preble is now in dealer sales in Milwaukee, Wi. Mark Whitney, ex-Avon Wholesale Supply, has been appointed general mgr. for H.G. Page & Sons, Poughkeepsie, N.Y. Lisa Revaz, ex-Masonite, has joined the sales team at Boise Cascade, Westfield, Ma. Chad Crow, president and COO, Builders FirstSource, Dallas, Tx., will add the title of CEO on Jan. 1, 2018. He will succeed Floyd Sherman, who will remain on the board through May of 2018. George M. Fishtorn II has been appointed general mgr. for BSF in Minocqua, Wi. New to BSF’s outside sales force are Xan Sarra, Orlando, Fl.; Jim Deck (exMenards), Lakeville, Mn.; and Kenneth Knowlton (ex-Forge Lumber), Cincinnati, Oh. Gregory Pryor, general mgr., Alexander Lumber, Elkhorn, Wi., has retired after 17 years in the lumber industry. Dustin Burke, ex-MiTek USA, has joined Great Southern Wood Preserving, Glenwood, Ar., as district sales mgr. Brent Mason is now handling outside sales from Springfield, Mo. Paul Burnham, ex-Warren Trask, has been appointed director of New England sales for Mid-State Lumber Corp., Andover, Ma. Tom Burke, ex-Cedar Creek, is the new branch mgr. of Tri-State Forest Products, Edwardsburg, Mi. Cason Shrode is the new chief operating officer for Cassity Jones Building Materials, Longview, Tx. Brett Kelly has been named CEO of MOSO North America, Milford, De. Mark Clifton is VP/general mgr. and Steve Osterman VPsales. All three are ex-DassoXTR. Lauren Humphrey and Amber Reese have joined the sales force at Thermory USA, Batavia, N.Y.

Building Products Digest

Mike Pederson, ex-Arrow Building Center, is a new project estimator at Marv’s True Value, Big Lake, Mn. Kelley Spence has joined Timber Products Inspection, Conyers, Ga., as treating division mgr. Jordan Lynch, ex-PrimeSource, has joined the sales team at DMSi Software, Omaha, Ne. He will be based in Denver, Co. Eric Mora, ex-84 Lumber, has been named sales mgr.-production builders with BMC, Frisco, Tx. Shea Waits, ex-PrimeSource, is now in territory sales with Heritage Contractor Supply, Oklahoma City, Ok. Kevin Thompson, ex-Home Depot, is now a Burlington, Vt.-based outside sales rep for Curtis Lumber Patricia Burkland was appointed chief financial officer for Winston Plywood & Veneer, Louisville, Ms. Brandon Tompkins, ex-Hitachi, is a new product mgr. at PrimeSource Building Products, Irving, Tx. Roxanne Lucas, ex-Oregon-Canadian Forest Products, is a new customer service rep at US Lumber, Raleigh, N.C. James Gunning, Fiberon, New London, N.C., has been promoted to director of sales for the U.S. Deral Henderson has been promoted to store mgr. of McCoy’s Building Supply, Lawton, Ok. Other new store mgrs. are Philip Pena in Del Rio, Tx.; Justin Askew, Corsicana, Tx.; and Adam Weatherly, Cleburne, Tx. Haley Seaman, ex-ProRoofing & Siding, has joined the outside sales team at US LBM/Building Supply Association, Newnan, Ga. Michael Sadlowski is now a contractor sales rep at 84 Lumber, Plainville, Ct. Lance Gooch is new to outside sales in Memphis, Tn. Patrick Kinsel is now branch mgr. for HD Supply/White Cap, Mendota Heights, Mn. Mike Blosser, Louisiana-Pacific Corp., Nashville, Tn., has been promoted to senior VP-manufacturing services. Kyle Robinson has been appointed branch mgr. of Midwest Roofing Supply, Cleveland, Oh. Lloyd Harper is new to lumber sales for Smith Forest Products, Birmingham, Al. September 2017

Patrick Frasca, ex-Arnold Lumber, has joined the outside sales team at Next Day Moulding, Woburn, Ma. Adam Karnes, ex-Lumbermans Drywall & Roofing Supply, is now in inside sales with Allied Building Products, Des Moines, Ia. Robert Lett Jr., ex-Universal Forest Products, has joined Derby Building Products, as territory sales mgr. in Grand Rapids, Mi., for its Tando and Novik lines. Betsy Chaffet, ex-HD Supply, has been appointed outside sales mgr. for Red’s Building Supply, North Franklin, Ct. Shane Grant, ex-Concord Lumber, has joined the outside sales team at Timberline Enterprises, Billerica, Ma. Sierra Fishman is a junior sales trader at Richmond International Forest Products, Richmond, Va. Denise Peske, Tibbetts Lumber Co., St. Petersburg, Fl., has moved into outside sales. Taylor Cole has been promoted to president of Firestone Building Products, Nashville, Tn. He succeeds Tim Dunn, who retires Oct. 1 after more than 31 years with Firestone and parent Bridgestone. Ashley Beltz is now in sales for ABC Supply, Smyrna, Ga. The company also promoted 25 branch mgrs. to managing partners: Holly Lockey, Fort Myers, Fl.; Josh Landrum, Fort Lauderdale, Fl.; Robert Olson, Hudson, Fl.; Donnie O’Sullivan, Pembroke Park, Fl.; Paul Field, Coal Valley, Il.; Darren Brennan, Topeka, Ks.; Paula Stumbo, Lexington, Ky.; Scott Prentiss, Lewiston, Me.; Eric Kuchan, Portland, Me.; Jeremy Crawford, Cheverly, Md.; Dan Carpenter, Kalamazoo, Mi.; Ryan Stanton, St. Cloud, Mn.; Bill Fleming, Fenton, Mo.; Jason McCulley, Syracuse, N.Y.; Matt Noury, Keene, N.H.; Gary Jenkins, Buffalo, N.Y.; Danny Duncan, Pineville, N.C.; Ken Dunn, Raleigh, N.C.; Scott Smith, Mansfield, Oh.; Brad Stinson, Cincinnati, Oh.; Rocky Yasko, Erie, Pa.; Matt Kenney, Florence, S.C.; Patrick Bryan, Nolanville, Tx.; Martin Mejia, Houston, Tx.; and Kyle Fisher, Huntington, W.V. Helena Hanbasquette is overseeing cutbacks at Mungus-Fungus Forest Products, Climax, Nv., report coowners Hugh Mungus and Freddy Fungus. Building-Products.com

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

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

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

YellaWood.com/ForDealers

Japanese Firm Buys Senco Senco Brands, Cincinnati, Oh., was acquired by Kyocera Corp., Kyoto, Japan, and will operate as part of its Global Cutting Tool Division. Senco will continue to provide the powered fastening category’s most comprehensive line of pneumatic and cordless nailers, staplers, screwdrivers, and fasteners through its professional distribution network in over 40 countries. Its global headquarters will continue to be based in Cincinnati, with existing staff and management staying in place and leading the integration

transition to new ownership. Formed in 1948, Senco is a pioneer in pneumatic tools and collated fasteners, with nearly 600 employees worldwide and operations in more than 15 global locations. Kyocera is a multinational ceramics, electronics and industrial cutting tool manufacturer, consisting of more than 200 companies with over 70,000 employees.

Ace Adding in South Florida Ace Hardware Corp. is opening a new 10,000-sq. ft. Customer Care Center in Fort Myers, Fl., which will

eventually expand to 110 staffers. The opening is part of a strategic, three-year plan to grow and transform the co-op’s Customer Care division, which manages communications and helps bridge information gaps for customers of Ace Hardware’s retail stores and its acehardware.com e-commerce site.

TALK Back We welcome your feedback. Send comments to letters@building-products.com.

SLOW DOWN & ENJOY Reading your “Across the Board” (Aug., p. 8) made my Monday. I was unable to ride my motorcycle to the office this morning; I read your article instead—it had the same effect. We are always hearing bad news covering our lifes with a false dark veil. But life is awesome, life is the opportunity to learn and enjoy the process. I can see you learned faster than the average folk. Cristian Aguirre, VP-International Sales Masisa, Chile Patrick, this is just a quick email to tell you how much I enjoy your monthly message in “Across the board” in Building Products Digest. It is always sincere, enlightening and thought provoking. Your outlook on life—both family and work—is refreshing, especially in these times of over-the-top negativity. Thank you! I would also like to add that, out of all the industry magazines I receive, BPD is the one I read cover to cover and pass on to my people. Keep it up! Don Chace, President Chace Building Supply Foxboro, Ma. In today’s busy environment, I feel the need to take just a quick moment to give you and your staff my opinion on your publication. I try to read as many of the publications relative to our industry. I need to tell you that BPD consistently has the best overall articles on current topics in our industry. Thanks and keep up the great work! Oh, it is good to be free, isn’t it? God bless America. Brian Hodge, President Kruse Lumber Rochester, Mn.

Building Products Digest

September 2017

Building-Products.com

NEW Products

Capped Composite 2x4s Convenient Deck Lighting Wolf Home Products has launched Wolf Outdoor Lighting, a series of easy-to-install deck and rail accent products that are designed to add beauty and ambiance to any decking or railing layout with a simple “plug-and-play” assembly. This assembly, plus a single low-voltage power supply, enables homeowners to create a variety of configurations without the need for wire cutting, electricians, or permits.

Armadillo Decking has re-released a line of composite 2x4s with capped radius edges. They are offered in 12’ lengths, in seven colors: Campfire, Canyon Gray, Java, Night Fall, Painted Desert, Palomino, and Rustic Red. Matching decking, fascia and riser boards are also available. Armadillo 2x4s are fully wrapped with a capstock coating and are designed to be fade and stain resistant. Made of post-consumer recycled plastic or HDPE materials, they come with a limited lifetime warranty.

n ARMADILLODECK.COM (320) 243-7318

n WOLFHOMEPRODUCTS.COM (800) 388-9653

Contemporary Window Options

Traditional Yet Modern Siding

In an effort to provide more design solutions to homeowners, builders and architects, Kolbe Windows & Doors has added radius direct set windows to its VistaLuxe Collection. The new window line features the characteristic slim lines, narrow frames, and square details of VistaLuxe products, while “reshaping” the view of modern design.

James Hardie Building Products’ Aspyre Collection brings together the beauty and modernity of its Reveal Panel System with the distinctive, traditional profiles of its Artisan Siding. The combination of fiber cement products helps architects and builders achieve a design vision across the spectrum of architectural styles, from traditional to contemporary and modern.

n KOLBEWINDOWS.COM

n JAMESHARDIE.COM

(715) 842-5666

Building Products Digest

(888) 542-7343

September 2017

Building-Products.com

Insulation that Fights it All

Snip in a Snap

Feeney now offers a Single Corner Post for its DesignRail aluminum railing system with CableRail infill. By requiring only one post in corners instead of two, it lowers overall material and installation costs, and provides a more open feel and view. The post is predrilled with horizontal slots, allowing cables to easily pass through a 90˚ corner.

Johns Manville’s JM CladStone Water & Fire Block Insulation is a noncombustible, continuous mineral wool insulation that allows for the effective drainage of water from an exterior wall cavity system. The insulation also is said to provide exceptional thermal efficiency, fire resistance, and acoustical performance. The product is specifically manufactured for superior performance in cavity wall and rain screen applications.

Milwaukee Tool has developed its next generation line of Aviation Snips. Designed to address common user frustrations, the new line features topnotch blade performance with the added benefits of improved ergonomics, handles, and locks. Each of the tools is made with forged blades and chrome plating for maximum rust protection, tool strength, and durability. For added utility, the cutter heads feature flush bolts to prevent the tool from getting hung up on sheet metal while cutting.

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n JM.COM

n MILWAUKEETOOL.COM

The Perfect Post

(800) 888-2418

(800) 654-3103

(800) 729-3878

Size does matter. Douglas Fir up to 20” x 20” x up to 40’ Cedar 16” x 16” x up to 32’

Richardson Timbers is a leader in custom millwork & manufacturing of customized timbers, with capabilities of delivering products throughout the U.S. Serving the construction industry for over 60 years, by taking the spirit of the old & combining it with the leading technology of today, Richardson Timbers is able to offer wholesale products with unparallelled service & quality.

Richardson Timbers

toll free (877)

Building Products Digest

318-5261 phone (214) 358-2314 fax (214) 358-2383 www.richardsontimbers.com

September 2017

Building-Products.com

Complementing the Craftsman Fypon is adding two new Crosshead designs to its polyurethane trim offerings that complement the historical characteristics of a Craftsman-style home. They replicate the height and look of a true wood built-up crosshead with cove and top trim. Both crossheads include a slanted top projection to allow for moisture run-off. Fypon’s polyurethane products are impervious to moisture, and will not wrap or crack. Additional end caps are offered to create a more modern look, available in 3-1/2” and 51/2” width to fit standard window and door trim.

Bosch’s Brushless Multi-Grip Reciprocating Saw combines an advanced handle design for greater comfort with a powerful 18-volt brushless motor and orbital/non-orbital action to deliver superior cutting performance. It’s a reciprocating saw that provides next-generation corded-like power and optimized user comfort to reduce fatigue in rough cutting and demolition work in pipe, metal or hardwood.

n FYPON.COM

n BOSCHTOOLS.COM

(800) 446-3040

Building Products Digest

The Right Saw for the Job

(877) 267-2499

September 2017

Building-Products.com

September 2017

Building Products Digest

KINGSPAN Insulation held a recent ribbon cutting for an additional XPS line at its Winchester, Va., manufacturing plant.

Insulation Producer Expands Kingspan Insulation, Atlanta, Ga., is adding capacity to its manufacturing site in Winchester, Va. The additional line will increase production of GreenGuard XPS boards. The manufacturer also intends to begin production of polyiso insulation in North America, to provide an even greater choice for specifiers and contractors. It is currently appraising locations for three new manufacturing lines. Locations under consideration are at existing plants in Virginia, California, Florida, Ohio, Ontario and British Columbia, as well as new sites in Nevada and Texas.

CT Darnell Celebrates 30 Years Anyone who has shopped at a home center or worked in lumber has likely been to a location that CT Darnell Construction, Alpharetta, Ga., designed, built, or equipped. The family-owned business started in Atlanta in 1987, supplying its Sunbelt Rack storage systems to burgeoning

big-box retailers. Soon after, it expanded its offerings to the lumber and building materials market and other industries. Today, CT Darnell works as a general contractor and rack system provider throughout the U.S., Canada and the Caribbean. It has built or equipped facilities for Lowe’s, PetSmart, HD Supply, and numerous other companies. Early on, the big-box format presented a challenge: how to merge warehouse and retail space, while protecting products from damage and making self-service easy. Sunbelt’s storage systems and fixtures met the need, providing an ideal solution for the LBM industry. Over the years, offerings were expanded to site planning, design and construction of LBM and retail facilities, as well as site renovations. CT Darnell offers a full line of steel buildings and integrated rack-supported systems that optimize inventory, protect product, and make picking product more efficient. It also continues to enter additional markets, including chain restaurants, manufacturing plants, and fuel/trucking facilities. “The racking products my father introduced 30 years ago gave big-box retailers a better way to merchandise their stores,” said president and owner Travis Darnell. “That vision has driven the direction we’ve taken ever since. Ultimately, I see us in the business of improving sales and operations for our customers—and our equipment, design and construction services are the way we deliver that.”

ASSOCIATION Update North American Wholesale Lumber Association is gearing up for its annual Traders Market Nov. 8-10 at Hyatt Regency, Chicago, Il. Former NFL star Merril Hoge will keynote, talking about perseverance in the face of adversity and strategies for overcoming obstacles to achieve goals. Before the event, on Nov. 7-8, NAWLA will host a Wood Masters course, highlighting memory training and advanced negotiation skills. Construction Suppliers Association’s annual expo will be Sept. 13-16 at Westin Savannah Harbor, Savannah, Ga. Florida Building Material Association has opened registration for its annual convention & expo Oct. 4-6 at the Rosen Shingle Creek Resort & Convention Center, Orlando, Fl. Highlights will include the annual golf tournament, kick-off breakfast with NFL analyst Brian Billick, and panel discussion on doing business in Florida during uncertain times. Moderated by Ro-Mac’s Don Magruder, the panel will feature Huttig’s Jon Vrabely, Woodford Plywood’s Darin Wood, Beaver Building Products’ Wade Jefferson, US Lumber Group’s Lawrence Newton, Durham Building Materials’ Lee Morris, and lobbyist Kari Hebrank. Northeastern Retail Lumber Association is reminding members to save the date for its annual meeting Oct. 20-21 at Renaissance Westchester Hotel, West Harrison, N.Y. New Hampshire Retail Lumber Association will honor its 2017 Lumber Persons of the Year at its upcoming meeting Sept. 8-10 at The Samoset Resort, Rockport, Me. Eastern New York Lumber Dealers Association’s annual clay shoot will take place Sept. 15 at Guan Ho Ha Fish & Game Club, Scotia, N.Y. National Hardwood Lumber Association reserved Oct. 24-27 for its annual convention at in Nashville, Tn.

Building Products Digest

September 2017

Building-Products.com

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SELLING with Kahle By Dave Kahle

Is integrity a sales strategy? I

WAS SPEAKING to a group of professional salespeople in Johannesburg, South Africa, on the subject of integrity in business. At dinner later in the evening, my host, who had been sitting in the audience, sheepishly shared with me that several of the people seated near her snickered at the idea. Evidently, to them, sales was just a series of transactions, and the salesperson’s job was to wring as much money out of each transaction as possible, under whatever means were necessary. Their position was, I believe, both sad as well as unwise. I believe that there are certainly practices in the business world where morality perfectly coincides with wise business. Integrity is one such practice. It is both good business as well as good morals. I believe it is such good business that salespeople should adhere to a no-exceptions policy of maintaining absolute integrity. In this post, I’m not going to make the case for absolute honesty as a moral policy. There is, however, a powerful case to be made for honesty from a practical point of view. Honesty is a powerful sales strategy that is probably more important today than ever before. It works like this: If you have integrity, you save your customer time. In today’s frenzied world, time is more precious than money. If your customers cannot believe you, then they must spend hours, days or weeks of precious time confirming the representations you have made. If, however, they can believe you, then they don’t feel the need to check for the veracity of every fact or statement. Here’s an illustration. A few years ago, we attempted to purchase a condominium. The condo was in a resort location, and had been used as a rental unit. So it came fully furnished, down to the silverware and cooking utensils. We thought it was a good value, a wise investment, and offered the owner exactly his asking price. Shortly thereafter, word came from the real estate agent that the owner, on receiving our full price offer, had increased his price. The owner may have been looking at his action as a slick negotiating ploy. We saw it as a lack of integrity. If we couldn’t believe his stated price, then we couldn’t believe any of the representations he had made. We would be reduced to counting the number of knives and forks

Building Products Digest

September 2017

instead of believing the inventory sheet provided for us. We didn’t want to waste the time checking out every aspect of the deal. If we couldn’t trust some of the representations by the owner, then we couldn’t trust any. And, if we couldn't trust any, it wasn't worth it to us to take the risk in dealing with him. We walked away from the deal. We saw the owner’s lack of integrity as causing us to invest a great deal of time to assure ourselves that the risk was worth the money.

The same is true of your customers. The more your customer trusts you, the less risk your customer feels in dealing with you, and the less time necessary to invest in understanding the product, service or program you are offering. From the customer’s perspective, it’s easier and less risky to deal with someone you trust than with someone you don’t trust. And that can translate directly into dollars. I’m always willing to pay more for something if I can buy it with less risk. In other words, if I can buy it from a company or person I can trust. On the other hand, I’d rather not buy something at all if I have suspicious feelings about the vendor. Here’s another example: A few years ago I grew jealous of my neighbor’s lawn. His was far greener, thicker and Building-Products.com

fuller than my lawn. It was because he had a lawn care service fertilize his lawn several times each year. I determined to do the same thing. So I obtained the name and phone number of the company he used, formed an idea of what the service would cost me, and decided to do business with that company. I called the company, ready to buy the service. When I inquired about the types of service available, the salesperson indicated that there were several options available. Now, I’m a visually oriented person, and I like to make decisions based on what I read, not on what I hear. So, I said, “Okay, why not come out and do the first application, and leave me a brochure so that I can review my options, and then I’ll make a decision.” The salesperson agreed. We then reviewed the details of my location, and the approximate date for the first fertilizer application. It was a deal. The salesperson then repeated our agreement, saying, “Okay, we’ll be out to do the first application and we’ll leave a brochure, and then you can cancel at any time with 30 days notice.” “What?” I said. He repeated his comment. “Wait a minute,” I said. “I only agreed to one application. I’m not committing to any ongoing contract until I check out all the options.” “But that’s not how we do it,” the salesperson stammered. “No,” I said. “But, but…” more stammers. “NO,” I said again. “Forget it. Cancel me.” What happened? Here I was, as good a prospect as there ever was. I was ready to purchase, having decided to use this company, even calling them to make the purchase. Yet something in what the salesperson said raised a red flag in my mind, and made me doubt the integrity of the person, and by inference, the company. He had originally said that I would be billed for only one application, and then implied that I was committing to an ongoing program. I viewed that as being deceitful, or at best manipulative. If I can’t trust them on that, on what can I trust them? There are lots of other lawn care companies, and the next one in the Yellow Pages got my business. Life’s too short, and business is too busy to deal with people you can’t trust. The question, then, for you as a Building-Products.com

salesperson is this: Do your customers see you as trustworthy? That’s a difficult question to answer. You can’t just ask them, because you know you are unlikely to hear a candid response. But you can gain a sense of their perception of you by looking for some of the symptoms of trust or a lack of it. For example, if you find your customers sometimes buying from a higher-priced source, or buying a product or service you consider to be inferior, it may be that your customer doesn’t trust you! On the other hand, if you find your customers accepting your word, and choosing to deal with you, even when you are offering an identical product at a higher price, then chances are they do trust you. Your reputation for honesty and integrity has been a smart business strategy, resulting in measur-

able benefits to you. Unfortunately, a reputation for trustworthiness and honesty is not a result of one event or a single transaction. It doesn’t develop out of some clever phrases you memorize and repeat. Rather, it develops over time as you adhere to a set of ethical standards in small as well as big things. It’s not a technique you use, but rather it’s the person you chose to become. As you strive to adhere to the standard of absolute honesty and integrity in all that you do, you’ll develop a character trait that will become evident to everyone around you, including your customers. And that is good business as well as good morals. – Dave Kahle is a sales trainer, presenter and author of 12 books, including the best-selling How to Sell Anything to Anyone Anytime. Reach him at (616) 451-9377 or dave@davekahle.com.

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877.533.7695 September 2017

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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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IN Memoriam Gregory Michael “Greg” Ryback, 68, president, owner and founder of Trinity Forest Industries, Hurst, Tx., died Aug. 5. A graduate of New Mexico State University, he entered the industry with American Forest Products in 1982, before starting Trinity in 1982. In 2013, he formed Cal-Western Forest Products, Hurst, to handle the sale of Trinity to Central Hardwoods and oversee his other holdings. He continued the manage the Hurst operation until retiring. He served on the board of the North American Wholesale Lumber Association. John Leo “Jack” Krzynski, 89, former sales manager of the wholesale division of Fingerle Lumber, Ann Arbor, Mi., passed away Aug. 10 after a brief illness. After serving with the U.S. Army in Korea, he received a degree in light building industry from the University of Wisconsin. He then joined Sanford & Zartman Lumber Co., Freeport, Il., in sales and home design, before moving to Fingerle. John Hutton Wilson, 92, retired New Jersey lumberman, died July 5 in Lake Sunapee, N.H. He fought in France and Belgium as part of a tank battalion during World War II, including the Battle of

Building Products Digest

the Bulge, earning an American Service Medal, European-AfricanMiddle Eastern Service Medal, Good Conduct Medal, and World War II Victory Medal. He owned Hunterdon Lumber Co., Annandale, N.J.; Hunterdon Building Supply, Flemington, N.J.; and Warren Lumber Co., Annandale, before retiring in 1991.

Louisa, Va., after a brief battle with brain cancer. After high school, he was drafted by the N.Y. Mets in 1966 and spent three years as a pitcher for the organization. After his baseball career, he entered the lumber business. In 1976, he started Chips Inc. and became partners with Clark Diehl in 1986. In 2000, they launched Arbor Tech.

William Wilson “Bill” Scott, 89, formerly with Scott Lumber, Triadelphia, W.V., passed away Aug. 7. The grandson of one of the Scott Lumber founders, he worked at several locations before retiring from the Triadelphia store. He previously served in the U.S. Air Force, stationed primarily in Germany.

John W. Otto, 80, former coowner of New Buffalo Lumber, New Buffalo, Mi., died Aug. 6. A graduate of Purdue University, he also worked in outside sales for Wickes Lumber and Big C Lumber, Three Oaks, Mi., before retiring in 2002.

Edward Wallis “Ed” Stevenson, 80, former operator of Hatton Lumber Co., Mena, Ar., died Aug. 1 in Mena. After graduating with a business administration degree from the University of Arkansas in Fayetteville in 1961, he joined his family’s timber business. He and his parents ran Hatton Lumber until 1987, when he purchased a radio station. But he continued to own and expand the family’s Stevenson Tree Farms. Richard Edward “Dicky” Dost Jr., 69, founder of Chips Inc., Zion’s Crossroads, Va., and co-founder of Arbor Tech Forest Products, Blackstone, Va., died Aug. 5 in September 2017

Steven Thomas Nowak, 62, industrial salesman for 23 years with Magnolia Forest Products, Terry, Ms., died July 14 in Jackson, Ms. Roger Hegemeyer, 91, retired salesman for Woodson Lumber Co., Brenham, Tx., died July 30. Ralph C. “Butch” Davis, 70, former operator of Davis Lumber Co., Princeton, In., passed away July 22. After serving in the U.S. Army during the Vietnam War., he joined his father at the Davis Lumber Co., taking over the business in 1990. Cecil W. Thacker, 79, former partner in Hollis Tull Lumber Co., Breese, Il., died June 24. Building-Products.com

DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. BC Wood – Sept. 7-9, Whistler, B.C.; www.bcwood.org. The Hardware Conference – Sept. 8-10, Marco Island, Fl.; (305) 8530049; www.thehardwareconnection.org. New Hampshire Retail Lumber Association – Sept. 8-10, annual meeting in conjunction with Retail Lumber Dealers Association of Maine, The Samoset Resort, Rockport, Me.; www.nrla.org. International Order of Hoo-Hoo – Sept. 9-13, annual international convention, Bellevue, Wa.; (870) 353-4997; www.hoo-hoo.org.

ADVERTISERS Index Cox Industries [www.coxwood.com]

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

DassoXTR [www.dassoxtr.com]

Deck Expo [www.remodelingdeck.com]

Deckorators [www.deckorators.com]

Digger Specialties [www.diggerspecialties.com]

Forest Economic Advisors – Sept. 12, 7th annual forest products forum, World Forestry Center, Portland, Or.; www.getfea.com.

Durgin & Crowell [www.durginandcrowell.com]

Construction Suppliers Assn. – Sept. 12-13, estimating workshop; Sept. 12-13, safety academy; Sept. 13-15, annual conference & expo, Westin Savannah Harbor, Savannah, Ga.; www.gocsa.com.

Everwood Treatment Co. [www.everwoodtreatment.com]

Great Southern Wood Preserving [www.yellawood.com]

Kentucky Forest Industries Assn. – Sept. 15-16, annual meeting, Masterson Station Park, Louisville, Ky.; www.kfia.org.

Hancock Lumber [www.hancocklumber.com]

Hood Industries [www.hoodindustries.com]

Kentucky Wood Expo– Sept. 15-16, annual meeting and golf, Masterson Station Park, Lexington, Ky.; www.nrla.org.

Huttig Building Products [www.huttig.com]

American Wood Protection Assn. – Sept. 17-21, technical meeting, Westin Resort and Marina, Key West, Fl.; www.awpa.com.

Lee Roy Jordan Lumber Co. [www.jordanredwood.com]

DMSi Software – Sept. 18-21, PartnerConnect17! customer conference, Omaha, Ne.; www.dmsi.com.

Leonard Lumber [www.leonardlumber.com]

Limington Lumber [www.limingtonlumber.com]

Matthews Marking Systems [www.matthewsmarking.com]

Southern Pine Inspection Bureau – Sept. 19-20, dry kiln operator course, Hilton, Pensacola Beach, Fl.; www.spib.org. Northeastern Lumber Manufacturers Assn. – Sept. 20-22, annual convention, Newport Marriott, Newport, R.I.; www.nelma.org.

Norbord [www.norbord.com]

Vermont Retail Lumber Dealers Assn. – Sept. 21, annual meeting & golf tournament, Lake Morey Resort, Fairlee, Vt.; www.nrla.org.

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

True Value Co. – Sept. 26-27, fall reunion, Chicago, Il.; (773) 6955000; www.truevaluecompany.com.

Cover II 53

Northeastern Lumber Manufacturers Assn. [www.nelma.com] 35 Orgill [www.orgill.com.]

Sustainable Forestry Initiative – Sept. 27-29, conference, Ottawa, Canada; (202) 596-3450; www.sfiprogram.com.

Redwood Empire [www.redwoodemp.com]

Composite Panel Assn. – Oct. 1-3, fall meeting, Hyatt Recengy, Savannah, Ga.; (703) 724-1588; www.compositepanel.org.

RFP Lumber [www.rfplumber.com]

Richardson Timbers [www.richardsonstimber.com]

Robbins Lumber Co. [www.rlco.com]

Southern Pine Inspection Bureau – Oct. 3-4, treated quality control course, Hilton, Pensacola Beach, Fl.; www.spib.org. Florida Building Material Assn. – Oct. 4-6, annual convention & Gulf Atlantic Building Products Expo, Rosen Shingle Creek Resort & Convention Center, Orlando, Fl.; (352) 383-0366; www.fbma.org.

Roseburg Forest Products [www.roseburg.com]

Cover III

RoyOMartin [www.royomartin.com]

Sandy Neck Traders [www.sntraders.com]

Do it Best Corp. – Oct. 13-16, fall market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Seaboard International Forest Products [www.sifp.com]

Green Industry & Equipment Expo – Oct. 18-20, Kentucky Expo Center, Louisville, Ky.; (800) 558-8767; www.gie-expo.com.

Sherwood Lumber [www.sherwoodlumber.com]

World Millwork Alliance – Oct. 7-10, annual convention, Westin, Charlotte, N.C.; (727) 372-3665; www.amdweb.com.

Southern Pine Inspection Bureau – Oct. 18-20, grading course; Oct. 24-25, quality control course; Oct. 26-27, planer operator course, Hilton, Pensacola Beach, Fl.; www.spib.org. LMC – Oct. 24-26, forest products & building material expo, Philadelphia, Pa.; www.lmc.net.

Simpson Strong-Tie [www.strongtie.com]

13, 27

Swanson Group [www.swansongroup.biz]

Tando [www.tandobp.com]

U.S. Lumber Group [www.uslumber.com]

Cover I

Florida Building Material Assn. – Oct. 25, committee dinner; Oct. 26, board meeting, Mt. Dora, Fl.; (352) 383-0366; www.fbma.org.

United Treating & Distribution [www.unitedtreating.com]

Deck & Remodeling Expos – Oct. 25-27, Music City Center, Nashville, Tn. (866) 860-1964; www.remodelingdeck.org.

Universal Forest Products [www.ufpedge.com]

National Hardwood Lumber Assn. – Oct. 25-27, annual convention, Omni Downtown, Nashville, Tn.; (800) 933-0318; www.nhla.org. House-Hasson Hardware Co. – Oct. 26-28, market, Sevierville Convention Center, Sevierville, Tn.; www.househasson.com. Building-Products.com

Viance [www.treatedwood.com]

Cover IV

Warren Trask Co. [www.wtrask.com]

Weyerhaeuser [www.weyerhaeuser.com]

September 2017

Building Products Digest

FLASHBack 50 Years Ago This Month

F ifty years ago this month, the building material industry was working to stimulate residential construction, according to the September 1967 issue of BPD’s sister journal, The Western Lumber & Building Materials Merchant. To be sure, they were working from a hole—a year previous U.S. housing starts had fallen to a 20-year low, plummeting below 1 million and bottoming out at an annual adjusted pace of 843,000 starts. In response, six major building material manufacturers bonded together to form Home Capital Funds to increase the supply of low down-payment mortage funds for home buyers. Backed by Anderson Corp., Armstrong Cork Co., Kaiser Industries, Masonite Corp., Reynolds Metals Co., and U.S. Plywood-Champion Papers, the new firm offered to finance a 15% seconds when paired with 75% primary loans by banks and conventional mortgage companies. For 10% down, strapped home buyers could now purchase a new home, which in 1967 went for an average of $14,250.

SEPTEMBER 1967 cover advertiser Rounds Lumber Co. was established two decades earlier by Wichita, Ks., lumber giant Ralph Rounds, to wholesale lumber produced at R o c k p o r t Redwood Co. and his other sawmills.

In other news of a half-century ago: • To better serve its territory, Foster Lumber Co. was laying down plans to relocate its home office to Boulder, Co., after being located in Kansas City, Ks., for nearly a century. The chain operated nearly 100 yards in Colorado, Kansas and Wyoming. It would make the move in 1968 and a decade later be acquired by Diamond International. • Hedding’s Building Supplies opened in “the fastgrowing Northern California hamlet of San Ramon.” Owner Bill Hedding, who previously had worked in construction and LBM retail, attracted several hundred homeowners to his grand opening, by offering the grand prize of a Shetland pony. The winner was a local grandfather of 13. The business would expand to multiple locations before closing in 1995. • Treating firm J.H. Baxter moved its headquarters from San Francisco to San Mateo, Ca., to the quarters it still occupies 50 years later. • Kaibab Lumber Co. moved its corporate offices from the site of its Flagstaff, Az., moulding plant to Phoenix’s Sky Harbor Airport. Kaibab began shuttering and selling off its plants in the early 1990s, with the Flagstaff operation purchased by Stone Industries in 1991 and closed two years later. The last of its mills—in Panguitch, Ut.—closed in 1995.

HAIL, CAESAR: Strait Door & Plywood touted its doors being used in the latest mega-hotel to be built in Las Vegas—Caesars Palace.

Building Products Digest

September 2017

• Commercial door maker Strait Door & Plywood supplied 3,800 doors, including their high pressure plastic laminate models, for Las Vegas’s newest hotel, Caesars Palace. The $26 million “Palace of Pleasure” spanned 700 luxurious rooms and suites, and included a health spa and “Garden of the Gods.” Today, the resort has nearly 4,000 rooms among its four towers, plus a gargantuan shopping mall and convention center.

Building-Products.com