The Merchant Magazine - May 2011 by 526 Media Group

The

MERCHANT

THE INSIDE TRACK TO DECKING SALES NAWLA SPECIAL ISSUE M AY 2011

Magazine

;$9cXq\ Ôi\ i\kXi[Xek ki\Xk\[ nff[ =IKN `j XmX`cXYc\ ]fi èk\i`fi Xggc`ZXk`fej n_\i\ Ôi\ i\kXi[Xek ZfejkilZk`fe dXk\i`Xcj Xi\ jg\Z`Ô\[ fi i\hlì\[ Yp Yl`c[è^ Zf[\j% ;$9cXq\ ki\Xk\[ cldY\i Xe[ gcpnff[ `j _`^_cp \]]\Zk`m\ è Zfekifccè^ k_\ jgi\X[ f] ÕXd\ Xe[ jdfb\ [\m\cfgd\ek ZXlj\[ Yp Ôi\%

GIF;L:K =<8KLI<J

;$9C8Q< =IKN JLGGC@<IJ 9I@K@J? :FCLD9@8 8C9<IK8

N8J?@E>KFE

J<IM@E> K?< N<JK<IE LE@K<; JK8K<J :8E8;8

:8E8;8

N<JK =I8J<I KI<8K<; J8C<J Jle[i\# 8cY\ikX# :E ),'$00($,*)+ nnn%n\jk]iXj\i%Zfd JLG<I@FI NFF; KI<8K@E> Jlde\i# N8 /''$+))$*()' nnn%jlg\i`finff[ki\Xk`e^%Zfd

LC :cXjj`Ô\[ n`k_ =I$J IXk`e^

:f[\ :fdgc`Xek le[\i <JI$)-+,

M\ip Cfn Jdfb\ IXk`e^

8NG8 JkXe[Xi[`q\[

:`kp f] Cfj 8e^\c\j II$)+,')

,'$P\Xi C`d`k\[ NXiiXekp

Ef MF:Ëj fi =fidXc[\_p[\

9@D FYa\Zkj Xk nnn%8I:8K%Zfd M@J@K

nnn%Ki\Xk\[Nff[%Zfd fi ZXcc pfli e\Xi\jk jlggc`\i%

8CCN<8K?<I NFF; Cfm\cXe[# :F /''$-)($'00( nnn%Xccn\Xk_\inff[%Zfd

:8C@=FIE@8

K?LE;<I9FCK NFF; KI<8K@E> :F% @E: :FCFI8;F I`m\iYXeb# :8 /''$/)-$/.'0 nnn%k_le[\iYfcknff[ki\Xk`e^%Zfd

=I$J IXk`e^

=FEK8E8 N?FC<J8C< CLD9<I =fekXeX# :8 0'0$*,'$()(+ nnn%]fekXeXn_fc\jXc\cldY\i%Zfd <JI$)-+,

($/''$+)($/--(

Viance Treated Wood Solutions

MoistureShield® has solid protection all the way to the core of each and every board.

Competitors use a thin layer of protection.

Competitors have an inner core which is vulnerable to mold and mildew.

Stock MoistureShield® products and provide your customers with a decking product that is guaranteed to last. Some folks wrap their decking boards in a thin coat as “protection” from the elements. Not MoistureShield. Our boards are protected to the core. Learn about becoming a MoistureShield Preferred Dealer at moistureshield.com. ©2011 Advanced Environmental Recycling Technologies, Inc. MoistureShield® is a registered trademark of Advanced Environmental Recycling Technologies, Inc.

866.729.2378 | moistureshield.com

The

MERCHANT

Special Features 8 MARGIN BUILDERS FOUR WAYS TO CAPTURE A LARGER SLICE OF THE DECKING MARKET

10 FEATURE STORY NORSE TREATER INTRODUCES ALCOHOLINFUSED SOUTHERN PINE DECKING

16 FIRST PERSON DO YOUR HOMEWORK: PUT COMPOSITE DECK INNOVATIONS TO THE TEST

27 SPECIAL FOCUS: NAWLA 2011 24-PAGE NORTH AMERICAN WHOLESALE LUMBER ASSOCIATION SPECIAL SECTION ON • NEW PROGRAMS • INDUSTRY FORECAST • CREDIT OUTLOOK • SAFE SHIPPING • GROOMING TALENT • TRADERS MARKET • SALES PRESENTATIONS • BAD ADVICE

Magazine

Online

In Every Issue 6 TOTALLY RANDOM 12 COMPETITIVE INTELLIGENCE 14 OLSEN ON SALES 20 GREEN RETAILING 26 MOVERS & SHAKERS 53 NEW PRODUCTS 62 IN MEMORIAM 64 CLASSIFIED MARKETPLACE 65 DATE BOOK 66 IDEA FILE 66 ADVERTISERS INDEX

May 2011

Volume 89 Number 11

BREAKING INDUSTRY NEWS, INDUSTRY PHOTO DOWNLOADS, & THE MERCHANT: DIGITAL VERSION BUILDING-PRODUCTS.COM

THE MERCHANT ON FACEBOOK SEARCH “THE MERCHANT MAGAZINE” ON FACEBOOK.COM CHANGE OF ADDRESS Send address label from recent issue if possible, new address and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872. The Merchant Magazine (ISSN 7399723) (USPS 796-560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2011 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

California Timberline, Inc.

59 PHOTO RECAP: LACN GOLF

Sugar and Ponderosa Pine, Douglas Fir, Redwood, Western Red and California Incense Cedar Hardwood Lumber & Plywood Chino, CA 91710 •

The Merchant Magazine May 2011

The Mark of Responsible Forestry SCS-COC-001973 ®1996 Forest Stewardship Council A.C.

(909) 591-4811 • FAX (909) 591-4818 Building-Products.com

TOTALLY Random By Alan Oakes

What’s workplace drama costing you? AST NIGHT,

I heard someone on television say that there is something in the air that just does not feel right or good. It is almost like we are waiting for something bad to happen. Are we really all in such a lousy mood? Have you noticed how stressed and burned out people seem to be? Not only do we have to contend with customers who have shorter fuses than in the past and who go off the handle at the slightest thing, but internally where people issues seem to be on the increase, the level of bickering and in-fighting also seems on the increase. It is clear that with the housing market as it has been for three or more years now— company cutbacks, stagnant pay, staff reductions including total divisional and company closedowns—that there is a sense of fear that creates an atmosphere of distrust in many organizations. Those lucky to be left in a job are covering the work of lost colleagues, mistakes happen, tension builds, the finger pointing increases and people start passing the buck. As pressure and tensions increase, so does the drama in the workplace. People are just worried. Of course, it does not take any of the above to create a hostile working place. There are people who can create drama any time of the day. There always seems to be a queen or king bee who is planning unrest, hiding something, not talking this week, creating issues for other employees, or working deviously and politically to create division. They are the ones who we all seem to tip-toe around so that they can manage their kingdom. I have seen drama created by bosses who humiliate their staff in front of others. I have worked for companies where change was fought tooth and nail by entrenched staffers pitting one side against the other. And don’t you just love those meetings where everything is taken personally, where you can cut the air with a knife, where there are clear power struggles marked by complaining and whining. And yet management does not do anything about it, as often the manager is just too scared to. Now for sure, there will always be some drama—it is part and parcel of the workplace environment, and it is just as likely to happen at the management level as at the staff level. But when drama takes the place of work, energy and focus are lost. Productivity takes a swallow dive, customers get lost, and it just feels downright uncomfortable to work in that environment. I have worked in companies where power and political struggles were the norm and it was just mentally draining. It is estimated that drama costs the U.S. economy over $3 billion a year in lost productivity. But when you look at it on a personal level, it could be costing you a pay increase, a promotion, and, more importantly, your health, happiness and well being. While unpleasant to deal with, not only do you have to recognize the drama, but you have to either take yourself out of it, or jump in with two feet and try to solve the issue. Workplace conflict resolution is not easy. I have had to deal with it many times and it should not be personal. There is normally a clear black or white. Even with shades of gray, there are ways to handle it! The important point is to remain fair and non— political. But leaving the issue to fester only fuels the gossip mongers, increases the level of complaints internally (and maybe externally), creates low morale, and opens up power struggles. More importantly, it takes precious time and resources away from doing what everyone needs to be doing—focusing on growing the business. I have also learned to get rid of those who are permanently in the middle of it—manager or employee. We have too much too worry about these days. None of us should walk on egg shells every work day. Our companies deserve better, and so do we. I recently heard a saying that Europeans work to live, while Americans live to work. If we do in fact live to work, let’s make those days fun again and enjoy the major part of our day. Alan Oakes, Publisher ajoakes@aol.com

The Merchant Magazine May 2011

The

MERCHANT

Magazine

www.building-products.com

A publication of Cutler Publishing

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

Publisher Alan Oakes ajoakes@aol.com

Publisher Emeritus David Cutler

Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com

Contributing Editors Dwight Curran, Carla Waldemar, James Olsen, Jay Tompt, Mike Dandridge Advertising Sales Manager Chuck Casey ccasey@building-products.com

Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com

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

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

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50

FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.

SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping

Building-Products.com

MARGIN Builders By Brent Gwatney, MoistureShield

4 ways to capture more of the decking market

Emphasize Performance

Although pricing still plays a strong role in building material choice, performance attributes often trump price. From a survey of builders, global management firm LEK Consulting found that “despite price pressure, durability remains the most important product selection factor as contractors want to prevent costly customer callbacks and avoid added or unexpected installation time driven by inferior products.” In the case of decking, wood-plastic composites provide a good opportunity for dealers to showcase durability. Manufacturers anticipate that composites will last two to three times longer than wood decking, depending on the product. Underscoring this, some composites are available with limited warranties, up to 20 years to lifetime. A strong warranty provides the builder with an effective selling point to homeowners, giving them

The Merchant Magazine May 2011

Photos by MoistureShield

ATCHING THE HOUSING market’s slow recovery is like rooting for your favorite underdog sports team: the constant hope for success is punctuated by brief triumphs that are soon dashed by the latest setback. How much more can dealers and builders take? Fortunately, one area that’s looking up is decking. The U.S. decking products market will grow 2.7% per year through 2014 and be valued at $6.2 billion, according to the Freedonia Group. Composites will drive approximately 70% of the growth in lineal feet. As builders begin looking for the most profitable decking options, there are several actions dealers can take to help boost sales and revenues:

COMPOSITE DECKING with fully encapsulated wood fibers can withstand direct ground and water contact, plus resist resist moisture, insects, and decay.

peace of mind that their deck investment will last for many years. In addition, some composite decking manufacturers use production processes that totally encapsulate the wood fibers in plastic. Such materials resist moisture and insect damage, and builders also can install them with direct ground or water contact. These performance features provide a way to sell higher-value materials to builders who have traditionally used wood decking. And, given the breadth of composite options available, there isn’t necessarily a large jump in price for greater product durability and longevity. Composite decking manufacturers provide a range of product lines, from entry-level materi-

als to higher-end decking with specialty features such as additional color choices or enhanced stain and fade resistance. This variety enables a dealer’s sales staff to best target a composite product to each builder’s needs.

Bundle Value-Added Components

Dealers know that offering combination deals on various materials can be a good way to boost sales. It’s the “would you like fries with that?” approach, but taken to a higher level of sophistication. When selling deck boards, a natural extension to the package is offering the builder complementary railing components. Homeowners increasingBuilding-Products.com

ly value railing, which helps drive overall growth in decking material demand. Freedonia’s deck report points out that “many homeowners will install additional railings and other accessories to create separate areas for dining and entertaining, or to add safety features to prevent falls by small children or older adults.” It’s all part of the greater popularity of outdoor living spaces. As with wood, composite decking is available with matching posts, post caps, rails and balusters. In some instances, dealers may also wish to package outdoor lighting or sound systems with the decking and railing—especially for railing components that have hidden grooves or channels for wiring. Fasteners provide another potential bundling opportunity. Builders may not perceive a strong benefit if the packaged item is just deck screws, but offering them a deal on a hidden fastening system can provide a cost-effective way for them to give their customers a deck with a higher-end finish.

Showcase Design Flexibility

Since many homeowners are interested in decks that reflect their unique tastes, dealers can help builders achieve this by offering a wide selection of decking colors and patterns. Composites are available in a multitude of colors: wood hues such as cedar, walnut, tiger wood and mahogany, as well as grays, earth tones, and other tints. Builders can readily mix and match colors of deck boards and/or railing components to create interesting patterns. Composites also come in a variety of shallow- and deepembossed patterns to simulate the look of wood grain. This feature can be an important selling point to builders or homeowners who value the appearance of traditional wood decking. Builders can use curved deck, stair, rail, and trim ele-

What to Expect in Decking

U.S. demand for decking will revive from the 0.6% annual drop in 2004 to 2009 to increase 2.7% per year and reach 3.5 billion lineal ft.—worth $6.2 billion—in 2014, forecast the Freedonia Group. Wood will continue to dominate the market, accounting for 77% of the market by 2014 compared to 86% in 2009, but demand will increase just 0.5% per year, from 2.604 billion lineal ft. in 2009 to 2.67 billion in 2014. According to Freedonia, demand for wood decking will “be restrained by competition from composite and plastic decking materials. Interest in tropical hardwoods, such as ipe, will provide growth opportunities in the residential building and non-building construction markets.” Composite decking, which saw demand fall 1.4% annually from 2004 through 2009 to 349 million ft., will grow 12.9% per year through 2014, reaching 640 million ft. Meanwhile, plastic decking, which saw demand fall 2.1% per year to total 73 million lineal ft. in 2009, is predicted to jump 13.9% annually over the next five years, to 140 million lineal ft. by 2014. Decking’s fate appears contingent on a modest recovery in the overall housing market. The residential market accounted for 59% of all decking demand in 2009, although the percentage normally would be much higher had it not been for the recession in home building. Nonresidential market demand will increase 2.4% annually through 2014.

Building-Products.com

DECK BUILDERS can customize designs with stairs, trim and railings.

ments to further expand the designs they offer their customers. While wood can be challenging to bend depending on the species and the nature of the application, with some composites, builders can heat the material and readily form a variety of shapes.

Highlight Green Attributes

In some markets—and frequently with higher-end homes—green features are important to homeowners. Although environmental attributes alone usually do not drive product buying decisions, they can be an important differentiator. One of the primary reasons demand is growing for composite decking is its green features. However, not all composites are equal in this regard. While some include little or no recycled materials, brands are available with high total recycled content. This can include both pre- and post-consumer content for wood fiber and plastic. There are two key selling points dealers can make for high-recycled content composite decking: (1) it diverts large quantities of waste from landfills, and (2) it can help builders earn green project ratings under popular programs like LEED for Homes. In addition, your decking materials manufacturer may offer incentives or dealer marketing tools. Among these are rebate programs, customer leads and referrals, technical support and training, and special offers. Contact them for information on how they can help support your business. – Brent Gwatney is vice president of sales and marketing for composite decking producer MoistureShield, Springdale, Ar. Reach him at bgwatney@aert.cc or (866) 729-2378. May 2011 The Merchant Magazine

FEATURE Story Kebony SYP Decking

Norse treater christens alcohol-infused decking

NEW WOOD TREATING process that uses a type of alcohol instead of copper-based chemicals has arrived. “Kebonization” is the result of research conducted by Dr. Marc Schneider, University of New Brunswick, Canada, in the 1980s and 1990s. Softwoods are injected with furfuryl alcohol, a byproduct of corn and sugar production, and then subjected to heat and pressure. The result is harder, more stable, and more resistant to water and weather damage than untreated wood. “This technology provides a global eco-solution to the major environmental challenge of rainforest deforestation,” says c.e.o. Christian Jebsen. “It can withstand harsh climates, and is ideal for both indoor and outdoor use.” Norwegian investors who wanted

to develop and commercialize the technology got involved in 1997. A pilot production plant opened in Norway in 2003, and began supplying European projects—decking and piers, cladding and roofing, window frames, plus indoor flooring and furniture— the next year. In January 2009, a larger, full-scale plant was opened in Skien, Norway. The decking currently sold in the U.S. is southern yellow pine domestically grown but shipped by container to Norway for processing. The company hopes to eventually open a plant in the U.S. Until then, Douglas Murray and his staff handle sales and distribution from an office and storage facility in Roanoke, Va. Although most of the treated SYP is shipped back to the U.S., some is

KEBONY, used in Europe as an alternative to pressure treated wood and tropical hardwoods, is now being specified in the U.S.

The Merchant Magazine May 2011

marketed as a premium product in Europe—along with similarly treated ash, beech, maple, and Scots pine. According to Murray, the U.S. office has focused on large, municipal projects, mainly on the East Coast, where officials are faced with major renovations of aging boardwalks. He says that Kebony’s environmentally friendly profile boosts local support for the costly renovations. He also believes that the large projects will attract the attention of residential customers. “Private customers know that major projects go through a tough selection process with professionals,” he says. “When the economy picks up, people can get the great new decking they’ve seen in public places.” Officials in Bethany Beach, De., selected Kebony SYP for its aging boardwalk after two years of fieldtesting and “nothing but positive feedback,” according to Brett Warner, director of public works. Phase II of the renovations—including deck boards and railings—was recently approved, for an estimated cost of $200,000. The final phase is slated for next year. Kebony SYP has also been installed on a 15-ft. section of the old boardwalk in Ocean City, Md “It’s holding up really well,” says Michael Datillo, city business administrator. “It’s not splintering and it looks great. We’re considering a larger test area.” Murray says that Kebony has been specified for 22 major new installations that will soon start construction. One example is Hunter’s Point South in New York City, where an old industrial area is being transformed into an urban living complex. At this location, Kebony will be used for a new boardwalk, a dog park, and other amenities. Building-Products.com

California Cascade Industries

We Proudly Distribute

DECKING BOARDS await treatment at Kebony’s full-scale production facility in Skien, Norway.

Looking ahead, Murray says that the company is “seeking to develop reseller relationships that can grow with the demand. “ He has already forged one such alliance, with Nature Neutral, a green building dealer based in Charlottesville, Va. “We became aware of Kebony after it was specified for a local project, by an architect who was looking for something classier than plastic or composite, but didn’t want to use tropical hardwoods,” says Kristopher Jensen, who handles sales at Nature Neutral. The company supplied Kebony SYP for a recently completed 10’x16’ residential deck, and expects to supply the new product for two or three more

deck projects this summer. “It’s a good looking, natural product that holds up well,” says Jensen. “A great addition to our inventory of green building products.” Another reseller is Mid Atlantic Building Supply, Ocean View, De., which shipped 3,000 sq. ft. of Kebony SYP for walkways and decking at a residential remodel in North Bethany Beach, De., just blocks from the renovated boardwalk. “He changed to Kebony after seeing how well it held up after one year on the boardwalk,” explains Brendan Welch, a broker at Mid Atlantic. “The architect had originally specified ipe for this project, but was interested in a greener alternative.”

Call us today 800-339-6480

• Trex Composite Decking and Railing • ACQ Pressure Treated Lumber • Browntone Treated Lumber • Borate Treated Lumber • Redwood • Western Red Cedar • Incense Cedar • Douglas Fir Lumber • Exterior Fire Treated Lumber • Interior Fire Treated Lumber • Specialty Patterns • Custom Milling • Redwood Fencing • SPF Primed Fascia • Ghostwood by Bitterroot Valley Forest Products

• Woodway Post Caps BOARDWALK renovation in Bethany Beach, De., used Kebony SYP after extensive, onsite testing. Building-Products.com

Treated • Trex • Redwood

May 2011 The Merchant Magazine

COMPETITIVE Intelligence By Carla Waldemar

Old customers = new Facebook friends NEW ENGLAND dealer Moynihan Lumber recently celebrated the fifteenth anniversary of its youngest yard, in Plaistow, N.H.

MOYNIHAN LUMBER, headquartered in North Reading, Ma., recently celebrated the fifteenth anniversary of its third location in Plaistow, N.H., president Michael Moynihan failed to understand what all the hoopla was about. His granddaughter, Shannon, was more than a little excited, however, because she’d helped open the store as her first job in the family business after coming home from college. But she recalls Granddad humphing, “Fifteen years? That’s nothing!” Well, not for someone “still working like a horse at 78,” a gent who launched the company in 1959. But, hey, he was a newbie back then, too. He’s lived with the stories of his own uncle delivering lumber with a horse and wagon in the Twenties. Since then, Moynihan Lumber’s original three shacks atop four acres have multiplied to eight buildings on a 13-acre site; several more of each in the Beverly, Ma., location launched in1986, and the 20 acres anchoring that 15-year-old Plaistow store, which also serves the outfit’s warehouse. Today the company boasts 135 employees—many of whom, it seems, answer to the name of Moynihan. Talk about family-owned! Michael and his two brothers each head one of the three locations. Shannon’s cousin Chris serves as general manager at HEN

The Merchant Magazine May 2011

North Reading. Cousin Katie runs the kitchen design department (and just returned from a buying show in Paris). Cousin Curt acts as lumber buyer (which took him last year to an expo in Disneyland). A couple of the young tads in the fourth generation have been corralled into YouTube commercials, reports Shannon, who serves dual roles as aunt/marketing manager. The extended Moynihan family, also known as employees, remain strongly loyal because of the family atmosphere. “My father thinks they’re all his children,” says Shannon with a verbal eye-roll. And that includes Aunt Rita, an employee of 35 years, who’s not even an actual aunt. Still, she’s so beloved that she’s had a city park named after her. Part of the charm is the management style Shannon and her dad endorse. (“We’re so alike they call me ‘Little George,’” she laughs.) Both agree that there’s no place for micromanagement: “It’s your job. It’s your department. You run it any way you want to, as long as it makes money.” And nobody gets an unearned leg up. “I started here, right after college, answering phones, and worked my way up. Here, you pick your area, work hard at it, and you’ll rise to the top.” Cousin Curt started with a highschool work program, and today, as lumber buyer, he’s off to Disneyland.

“Embrace change” is Shannon’s mantra, and one that’s part of her gene pool. Father George was the brother who pushed for opening the Plaistow store, across the state line in New Hampshire. The first two locations, close to Boston, anchored well-established communities, while Plaistow still offers “a lot of open land. People will head there,” as he foresaw, “and we’ll be ready to go after their business”—especially true after the downturn slowed new building elsewhere. These days, as is happening everywhere in the nation with the recession tying consumers to their present homes, it’s remodeling that’s keeping the company alive. Moynihan’s ahead of the curve in that niche, too. Its showroom, launched in 2005 to showcase 20-plus kitchen vignettes, has just undergone a complete facelift of its own. It now features a walk-through home environment, from porch to deck, for which Cousin Chris re-evaluated every single product (at the same time, he modernized the company’s technological systems to enable all inventory to be accessed and scanned via computers). Chris also led the company’s laborious efforts to become FSC-certified and has included a whole showroom wall of green products. “Green is not big here in New England at the moment, but it’s the wave of the Building-Products.com

future,” Shannon says. “We’ll be positioned in the lead.” She’s also ecstatic about the uplift in the Beverly store, designed with Ace Hardware’s input. “I’m a Macy’s and Target shopper, and now it looks like a Target hardware display, all beautifully organized and labeled,” she effuses. In another move that seems to target Target’s credo, Moynihan has morphed to offer one-stop shopping, supplying everything from lumber, roofing, insulation and hardware to paint and power tools. It now offers a line of specialty millwork, having snagged a top employee. (“When Jeffers Millwork closed, we got ’im!” Shannon crows.) The company also provides door and window installation, along with kitchen, bath and deck design assistance. To indicate that thrust and promote the increased scope of the company’s offerings, she’s advocating a name change from Moynihan Lumber to Moynihan Home Improvement. But so far, Little George has not been able to convince George to act on that suggestion. Although the yards can save a bundle by purchasing jointly and by participating in an ENAP plan along with their competitors, Moynihan’s three sites all boast different demographics. North Reading, the oldest and company headquarters, historically served large tract builders with its strong outside sales staff. Beverly, which started out as a dot on the farming landscape (“We sometimes got paid in vegetables”), has developed into a more upscale community where foot traffic prevails. (“We’re like Cheers for our customers—a hangout for remodelers and jobbers.”) Plaistow serves a mix of both. “When I started out there,” Shannon recalls, “I was thrilled by the energy and momentum of establishing a brand in a new location and seeing it succeed in a few, short years. It proves our business formula was the right one.” That maxim still pleases the pros, who remain Moynihan’s mainstays. Service by knowledgeable, experienced staff, sure. Free delivery—terrific, too. Training events to keep abreast of new products—also nice. But what it comes down to (you’ve heard this before) is relationships. Moynihan’s contractor clientele represent the third generation, doing business with the third generation of Moynihans. All of the above are exactly what keeps Shannon on board here. “Number one, my family means more to me than anything,” she professes, “and, number two, from the managers to the yard guys, everyone’s dedicated to the store. They’d give you the shirt off their back if you needed it. And that comes from the top down—the message that we help people any way we can.” Thus, those generations of Moynihans make it a point of pride to give back to the community—donating lumber to the Boy Scouts for 35 years and sponsoring annual events for cancer charities. Clearly, Moynihan’s place as a community pillar is a constant. But its players aren’t mired in the past. “Embrace change,” Shannon preaches with evangelistic fervor. And she’s quick to act on her mantra. As marketing manager, the young woman has spearheaded the company’s efforts to convey its message through electronic—read, social— media, taking over where its traditional print and airwave ads leave off. Since 2007 she’s sent out a monthly enewsletter which has received “great response,” driven in part by monthly Win It e-contests and promotions, such as ticket giveaways, which require in-person pick-up. Which drives store traffic. Which is wonderful. “I’m a big, big fan of social media,” she says, and, to her delight, so are Moynihan’s contractors, a group not notable for occupying the cutting edge. She’s set up a special Building-Products.com

Facebook page for them, backed by a clever Like It Forward campaign in which Moynihan donates $1 to local food shelves for every new contractor who “friends” the company—well over 100 so far. The e-tool encourages them to ask questions, such as installation how-tos, and receive immediate response. They also send her leads. To her surprise and immense pleasure, these pros also forward unsolicited testimonials praising the company’s products and services—“pure gold, an unexpected bonus,” which Shannon posts on the company’s website. (The website also contains a detailed how-to section that helps pros and d-i-yers alike attack their projects.) “Mobile marketing is the next big thing,” this maven is convinced. “I’m a big believer. It keeps us well ahead of our competitors.” Even better, it’s absolutely free—all the more vital in a year that’s seen her marketing budget crunched by one-third. And let’s not forget the free talent, a.k.a. young cousins, cavorting on the company’s YouTube videos. “We’re surviving due, also,” Shannon says, “to a deliberately conservative credit and pricing policy, especially where our competitors are concerned. Some of them are almost giving away products in order to attract business, but I believe that will backfire. It isn’t easy to turn away business, but if it isn’t profitable business in the long run, it doesn’t do anyone any good.” Carla Waldemar cwaldemar@comcast.net

May 2011 The Merchant Magazine

OLSEN On Sales By James Olsen

Bid busting solutions

3. How to Present the Bid: Make It an Event

ANY SELLERS FEEL VICTIMIZED by, and thus fall victim to, The Bid Process. “I can’t really sell my guy* because he buys off a list. The lowest bidder gets the order. I try to work with him, but he tells me to quote my best price the first time and if I’ve got the low number, I get the order.” (“I got the order! Hooray! I’m the dumbest!”) This is a victim mentality. And if it’s true, which it’s not, we can have a $10-an-hour employee do our job.

Number 1 Bid Busting Solution

Prospect for accounts who will buy from us as promotional partners, not people who want us to be their Bid-B’s. But if we must bid…

2. De-commoditizing the Bid/RFQ/Inquiry

Ask about desired outcome. What exactly is the customer trying to accomplish? If we know the desired end result, we submit a bid—a solution—that is better customized (not commoditized) to our customer’s needs and, most importantly, to the talents of our company. We rewrite the bid customized to our strengths vis-à-vis our customer’s desired outcome. Work the bid collector. This is neither my style nor my favorite, but it works and most master sellers have an arrow or two of this strategy in their quiver. Being nice to the person who collects the bids—whether they are the buyer or not—pays dividends. Asking for guidance and friendly conversation will give clues to how the bids are placed. Often information considered unfair is given. Work the Bid. This is a heavy part of strategy number one. When given a bid, we must query every aspect— price, delivery, availability, penalties for late shipment. That small piece of information and many like it will be discovered going through the bid thoroughly and completely. Everything is important, but identify the most important aspect and prioritize the remainder.

The Merchant Magazine May 2011

The set up conversation: “John, I will have the bid ready tomorrow. Will Pete and Mike be able to make the presentation? If not, let’s set it for a time when all the decision makers can be present.” If all the decision makers are not present, we are submitting a bid, not selling. Find out when. “When will the order be placed?” Be the last bidder. “Are all the bids in?” is a bid-buster question. If the answer is yes, find out as much as possible about them. If the answer is no, why are we waiting? Present a final number without specifications. If we are doing highly detailed work or there is some advantage in others seeing our bid, this is a bold and effective move. Customer: “Wow, that’s a great price, but where are the details?” Bold Salesperson: “We stand behind our work 100%. Our designers are the best in the business. I will give you the details when you give me the order.” This approach can be flipped by giving the specs but leaving out the price—until all decision makers are present, for example—or modified by leaving out one key element in an otherwise immaculate bid. This approach can be delivered in bolder and subtler ways, adjusting it to our style and that of our customer. Submit an inexpensive bid with a strict time limit. Especially in ongoing business-to-business sales relationships, this is a great bid buster. Submitting a great price with a time limit encourages our customers to work with us. If they come back after the deadline, we must hold firm, even if we lose the business, or this will not work. Speak assumptively. We must speak as if we are presenting a solution that will be implemented. (Not a bid!) Know the details. Especially when presenting a customized solution, if we fumble on details, the customer will return immediately to the standard bid. Ask for the order. Speak assumptively throughout the presentation and be prepared to ask for the order many times. Letting the customer walk (consider, think over, discuss on their own) or any other option lowers our closing percentage drastically. * Our guy is someone who buys from us like a partner. Refer to number one bid buster solution above. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Building-Products.com

FIRST Person By Shane O’Neill, Compositology LLC

Put composite deck innovations to the test

VER THE LAST FEW YEARS,

there has been a flurry of activity within the composite decking market. Many of the products prevalent in the market 15 years ago are not even available any more or, at the very least, are called something completely different. In some ways, this is a good thing. There were a lot of growing pains in the development of composite decking, and several manufacturers paid the price for using customers as field testers. But has everyone learned their lesson from the past? How do the practices of your composite decking vendors affect you, the dealers and distributors? Let’s face it: people like new things. If you look at anything Apple makes, you will see the power of marketing “new.” However, in the arena of building products selling new can be a two-sided coin. On one side, there’s the selling power of new, which everyone loves. During the honeymoon phase, all of the things your sales reps told you are true. There’s no reason to question what they’re saying. Product is selling, inventory is moving, and you are making a nice margin on a value-added product. The flip side of that coin, however, is not so good. After an innovative product has been out for a year or two, issues may arise. The magnitude and scale of these issues often are completely out of your control, and resolution hinges on how well your vendors did their homework. Just like all manufacturers, composite decking vendors balance the costs of bringing their product to market with the value that product provides. During a product’s life cycle, most companies work to improve the its shortcomings. These refinements may be nearly invisible at the consumer level (updated additive systems to increase long-term durability, improved color packages to increase resistance to fading), but address concerns observed in the field. Depending on the nature of the refinement, it may or may not be applied to their current product line. The time and cost of recertification is usually prohibitive on a current product, but can be justified with the launch of a new product. Therefore, most refinements are bundled with other visible improvements (such as new color palettes, different texture and grain patterns, or improved surface treatments) and the marketed new product is now the “innovation.” In a perfect world, manufacturers will constantly search

The Merchant Magazine May 2011

for ways to improve their product to create the best possible product. In reality, most improvements are more self-serving. If a manufacturer can notably improve its product (i.e., attributes that can be easily disseminated by the consumer), the marketing department will wrap that improvement up in new product names and lines and leverage it into a price increase. With the launch of an “innovative” product, the manufacturer will now have to refill the distribution pipeline with inventory. The producer will do 70%+ of its sales in a year just “filling the pipe,” with only a portion of those sales actually being installed the first year. And, dealers have old product is more than likely now obsolete and a new product with potentially limited real-world exposure. When composite decking first became mainstream, it often went by the name “wood-plastic composites” or WPCs. This was because nearly everyone had the same thing—waste sawdust was mixed with some sort of waste plastic (typically milk jugs or grocery bags)—and what came out was this blue-gray plank that was sort of flat, sort of square, and was the “innovation” to replace treated wood decking. The sales reps told you about its resistance to moisture and rot, absence of splinters or toxic chemicals, that you “don’t have to clean it,” that it was dimensionally stable and would last forever. It even had a warranty. After this first generation of composites was out in the field for a few years, you began to hear about “issues.” There were varying degrees of color loss, food stains, easily scratched and marred surfaces, mold, fungus, expansion and contraction issues due to temperature, planks twisting and swelling from moisture, and even cases where boards decayed and turned to dust. Affected manufacturers took their licks, dealt with warranty claims and class action lawsuits, and ultimately, the products were greatly improved. Those that didn’t do so just walked away. This left a lot of dealers and distributors in a tough spot: you have a personal relationship with your community. You aren’t selling a product inside a vacuum. You need to maintain a great relationship with the contractors and homeowners you know. They keep you in business and allow you to pay the bills. When a manufacturer has a product failure that leaves you in the lurch, any profit you may have had in that sale is lost in the cost of maintaining that Building-Products.com

customer relationship the best you can. Four years ago, the hot innovation in alternative decking was cellular PVC. It was the solution to all the past problems with WPCs. The sales reps explained to you how this innovative product wouldn’t fade, stain, scratch or mar, and was impervious to water and truly ultra-low maintenance— basically, the perfect product. Well, after selling a few million linear feet of cellular PVC decking to homeowners and contractors, some people had problems: staining from bug spray and suntan lotion, reactions with rubber and other plastics causing discoloration, permanent material shrinkage, and surface chalking. Again, the manufacturers went to work developing refinements. Now, the hot trend is capstock products: an additive and pigment rich resin coating on the outside of a composite board. Most of the major composite decking producers have introduced a capstock line, promising: “Exceptional resistance to fading and water damage” “Practically impossible to stain” “Requires very little upkeep” “Practically impervious to the elements and everyday accidents” “Engineered to resist fading, scratches and stains” “Resists everything but stares” Sound familiar? What can you do to find out if history will repeat itself again? Expect more from the manufacturers and sales reps. When they walk in your door to sell you the newest innovation, there should be a higher expectation than doughnuts or a free lunch. Be ready to ask them some simple questions to decide if the newest innovation is what you want to sell:

“What testing have you done?” How are they able to claim the product performs as their literature suggests? Do they have any sort of data or does everything look like a marketing campaign, with checkmarks and catch phrases? If there are no numbers to explain their results, ask them to provide the numbers. Do they really know the product beyond the literature? Remember, this is the person you are going to call on if there is a problem in the future.

“If there is testing, who did the testing?” Was the testing done by a third-party (someone outside the company) or someone inside? Internal testing is a valuable tool for a company while developing a product, but at some point, there must be validation of the results by an outside source. It helps to keep things honest, and adds merit to the internal work done by the company. Some of this is validated during the code testing process. However, the code is focused only on the mechanical performance of the decking. It evaluates a minimum performance level for a product and establishes a joist span and stair tread rating. There is no validation of long-term durability, surface performance, or resistance to the elements.

“How does your competition perform in comparison?” If they don’t know what the competition does, how do they know they have the best product?

“What field testing or accelerated tests has this been through?” It takes time for issues to show up in the real world. It’s why field testing or accelerated tests are vital to draw out issues before you have to deal with them at your customer’s home. After you meet the various decking reps and compile

a short list of products you feel comfortable with carrying, how do you decide which one is the right one? Evaluate the market and bring in your best contractors and homeowners to gauge their response and interest. Then consider a technical evaluation. Not only does it provide a second opinion on products you’re considering, but it also provides a unique marketing tool to persuade customers to buy from you. The cost of the evaluation can be marginal compared with the capital investment in a new line. If a manufacturer is serious about wanting your business, see if they will cover or offset the cost as part of the deal.

“You have the newest innovation, now what about the old stuff? While the manufacturer makes their money as each truck leaves the factory, you don’t make yours until the last boards are sold. If you still have partial bundles from last season, have you made your profit yet? What is the manufacturer doing for you? Are they requiring a minimal commitment of $250,000+ and forcing you to carry all product colors? Is there a buyback of unused product that will be obsolete the minute the new stuff shows up? Vendor-managed inventory program? Are they working to be a partner with you into the future, or are they just looking to move some units in the short haul? It’s important to look at this process as an investment. Composite decking is a value-added product, not a commodity. Invest in products and companies that have instilled confidence in what they do. Companies should know their product and have scientific data to back up their claims. They should provide confident, competent personnel who can address questions and concerns when they arise from your customers. The selling of value-added lines also requires your staff to be familiar with the products, explain their strengths and weaknesses, and provide installation tips and techniques to your contractors. Before new products arrive, develop the means to either effectively sell your entire inventory or negotiate a vendor-based option. Ultimately, you are the one who will be left holding the bag, so do the research to protect yourself and your relationship with your customers. – Shane O’Neill is founder and chief technology officer of Compositology LLC, a marketing and technical support consulting company for the composite materials industry. Reach him at (763) 567-0097 or shane@compositology.com.

Do Your Homework

“Today, ASTM test standards exist for composite decking, such as D7031, but the industry has yet to standardize specific test methods for long-term performance. As the industry continues to evolve, standards will likely become more prevalent. But, for now, it’s up to you to do the homework to understand the makeup of the products you are offering your customers. “WPC and PVC have their pros and cons. Regardless of which you choose, don’t be afraid to ask your suppliers what polymer, colorant, additive and process technologies are being used to increase fade, scratch and moisture resistance. These can make all of the difference in long-term product durability—and ultimately your reputation and the number of warranty claims you receive.” – Brian Guhde, extrusion technology development manager for Americhem

DEALER Briefs

A new 7,200-sq. ft. Do it Best store is now being built in Cheney, Wa., by D. Tepper Enterprises of Illinois , owner of a Do it Best in Champaign, Il.

Big John’s Building & Home Center, Glenwood Springs, Co., will

close at the end of June after 22 years.

Hancock Plaza Ace Hardware, S.E. Colorado Springs, Co., held

a grand opening in early April. The new 8,000-sq. ft. store is the third Ace to be opened by brothers Nick and Kirby Kuklenski.

Drake Hardware & Lumber, Fort Collins, Co., has closed after 17 years.

Ace Hardware is opening a new store this summer in the South Hill area of Spokane, Wa.

Longmont’s Ace Hardware, Longmont, Co., has added another 4,300-sq. ft. to its 20,000+-sq. ft. store— it fourth expansion in the last 10 years.

Lowe’s opened a new 117,000-sq. ft. store April 21 in Iwilei, Hi. (Craig Anderson, mgr.; Craig Whitford, asst. mgr.), the chain’s second on Oahu. Lowe’s also continues petitioning to build a home center in Petaluma, Ca.

Habitat for Humanity opened a ReStore discount outlet in Steamboat Springs, Co., specializing in appliances (Martin Krueger, mgr.). CPO Commerce , Pasadena, TylerTool.com

Ca., acquired the website.

ProBuild Acquires Harbert

ProBuild Holdings, Denver, Co., has acquired the assets of four-unit Colorado dealer Harbert Lumber Co. Founded in 1937, Harbert Lumber operates yards in Grand Junction, Glenwood Springs, Aspen and Steamboat Springs. “We’re very excited to join the ProBuild family,” said owner Gordon Harbert. “Their resources ensure the business we’ve built will maintain our leadership position in all the western Colorado markets we serve.” “The addition of Harbert Lumber will enable ProBuild to service the growing needs of our customers in Colorado, particularly in the mountain towns where we have not had a robust presence until now,” added ProBuild c.e.o./president Bill Myrick. As housing starts across the Rocky Mountain region begin to increase for the first time since the recession, ProBuild now operates 10 retail locations in Colorado and more than 450 nationwide.

Preservative Producer Pulls Plug on CuNap

Merichem Co., Houston, Tx., has declined to re-register copper napthenate with the EPA and will discontinue production of CuNap-8. Its chemicals division will instead focus on naphthenic acid. CuNap is commonly used to pressure treat utility poles, railroad crossties, bridge timbers, and other industrial wood products. Elaina Jackson, chief operating officer for Pacific Wood Preserving Cos., Bakersfield, Ca., expects most plants and customers to switch to pentachlorophenol. “Penta and CuNap have the same AWPA listings, and many customers and utilities specify them interchange-

ably,” she said. “The major difference is that CuNap is a ‘general use’ preservative and penta is a ‘restricted use’ preservative. Penta does have the overwhelming percentage of the market share for pole production—the primary use of both CuNap and penta, so I don’t see that the change will impact the market much.” Jackson said some customers who prefer CuNap’s “general use” nature may continue to search for another replacement, “but at the current time there is not an oilborne preservative that is comparably substituted.”

Suitor to Mix Activant, Epicor

Activant Solutions, Livermore, Ca., has agreed to be purchased by private equity firm Apax Partners and merged with another Apax acquistion target, Epicor Software Corp., Irvine, Ca. The combined company will retain the Epicor name and become one of the world’s largest providers of enterprise applications to manufacturers, distributors and retailers. The acquisition of Activant is conditioned upon the concurrent closing of Epicor, both expected by the end of the second quarter. Activant is currently owned by investment funds affiliated with Hellman & Friedman, Thoma Bravo, and JMI Equity, and by management.

Arch Licenses Osmoseʼs Micronizing Technology

Arch Treatment Technologies, Atlanta, Ga., has been granted a worldwide license to produce micronized wood preservatives in accordance with patents owned by Osmose, resolving a patent infringement suit between the companies. Both manufacturers will continue supplying the market with their current preservatives.

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 Gene Pietila

Sales for Coast Wood Preserving

The Merchant Magazine May 2011

Building-Products.com

Get decked out this season.

SD StructuralConnector Screws

DTT Deck Tension Tie

LSCZ Stair-Stringer Connector

Simpson Strong-Tie is your resource for deck connectors and fasteners as well as education on deck framing and code requirements. Our DTT deck tension tie meets the code for connecting guardrail posts to the deck framing. Our new LSCZ stair-stringer connector offers a versatile, concealed connection between the stair stringer and the carrying header or rim joist while replacing costly framing. And our new time-saving SD structural-connector screws are specially designed to perform with our most popular connectors and provide an alternative to nails. For all your deck hardware solutions, make sure you stock Simpson Strong-Tie. For more information and to see our DeckToolsÂŽ deck design software in action, visit our Deck Center at www.strongtie.com/deckcenter or call (800) 999-5099.

ÂŠ 2011

Simpson Strong-Tie Company Inc. DECK11-D

SUPPLIER Briefs

Boise Cascade expected to restart its La Grande, Or., sawmill late last month, focusing on narrower widths. The plant had been down for nearly two years. Sierra Pacific Industries, Anderson, Ca., is nearing completion of renovations at its sawmill in Sonora, Ca., and expects to restart the retooled facility this summer.

Capital Lumber has replaced its PVC decking and trim lines at Chino and Healdsburg , Ca., with Trex Escapes decking and TrexTrim.

MJB Wood Group, Mira Loma, Ca., is now national distributor for air compressor manufacturer Harrier Tools, Irvine, Ca.

Calvert Co., Vancouver, B.C., will produce private label glulam beams with EcoBlu Products’ ECOB Red Shield coating, to repel water repellency and protect from mold, wood rot, termites and fire.

All-Coast Forest Products, Englewood, Co., now distributes Gossen deck, porch and railing products from its DCs in Northern California and Colorado.

Rkl Sales Corp., Albuquerque, N.M., is now representLighting in New Mexico and southern

ing Schréder Colorado.

The Merchant Magazine May 2011

Boise Cascade Acquires Filler King

Boise Cascade, Boise, Id., has acquired Filler King Co., Homedale, Id., which produces glue-laminated beams and decking. “The Filler King operation enjoys a rich product mix and offers a much broader range of products than Boise Cascade has historically produced,” said Tom Corrick, Boise’s senior v.p. “In addition, the Filler King operation is a very efficient and flexible operation with available capacity to grow as the economy recovers.” Filler King’s management team will stay on, including co-owners Bud Filler and Wayne King, who founded the company in 1988. Others will be offered conditional employment offers, subject to normal new employee prescreening. The deal was expected to close April 29. A day after the acquisition was announced, Boise revealed that it will be mothballing its own laminated beam plant in Emmett, Id., indefinitely, due to market conditions. According to Random Lengths, the facility had been operating on a limited basis for a year.

NorCal Ace Operator Adds Store #3

The owner of two Ace Hardware stores in Santa Cruz, Ca., will open a third store in the same town. Rodney Hoffer is investing nearly $500,000 to remodel a 5,000-sq. ft. building formerly occupied by Blockbuster Video. “It’s an incredible location,” he said. “I’ve been looking for a good space on the Eastside for 10 years.” Hoffer got into the hardware business in 1986, after 15 years in the tech industry. Over the years, he has bought three hardware stores and closed two, adjusting to changing times.

Building-Products.com

TREATED WOOD was the material of choice for a newly constructed promenade (two upper photos) in Pismo Beach, Ca. Ten years in the planning, the project’s final phase—including wooden walkway, sidewalks and new storms drains—cost nearly $2 million. Pilings, timber and lumber were supplied by Gemini Forest Products, Los Alamitos, Ca., following treatment by Thunderbolt Wood Treating, Riverbank, Ca. The 40-ft.-long Douglas fir pilings (lower) were treated with Chemonite ACZA, while the lumber for the walkway, railing and benches was treated with ACQ .40.

The Merchant Magazine May 2011

Building-Products.com

Jeld-Wen Settles with EPA

Per a settlement agreement, Jeld-Wen, Klamath Falls, Or., will pay the Environmental Protection Agency $700,000 for the clean up of a contaminated lumber treat-

SUPPLIER Briefs

Simpson Door Co. , McCleary, Wa., now offers WaterBarrier technology for many of its door designs.

CertainTeed is offering RealScape 3D software for use with its Bufftech vinyl fencing and Big Hammer Pro Deck Design software for use with its EverNew decking and railing. CertainTeed also has expanded the color palette for its Wolverine Encore vinyl siding.

ing facility. Jeld-Wen owned Circle DE Lumber, Klamath Falls, from 1971 to 1973. Milled lumber treated in a 1,000-gallon dip tank that contained diesel oil and pentachlorophenol, or PCP, contaminated soil around the tank with PCP, dioxins, and petroleum hydrocarbons. In 2005 and 2006, the EPA removed 500 tons of contaminated soil. Last year, the Department of Justice sued Jeld-Wen, leading to the $700,000 settlement. Nearly $208,000 was paid by the current owner of the site. The remaining $142,000 in un-recovered costs will come from federal Superfund accounts.

Osmose has acquired the wood preservative distribution business of Industria Quimica Dipil Ltda., Brazil.

Styron is changing its name to Trinseo later this year. The company will maintain the arrow icon in its current logo, company colors, tagline “Powering Ideas,” and continue using the Styron brand as a trade name for polystyrene products. Nevamar Decorative Surfaces’ products are now

available with full FSC certification.

T AMKO was awarded the 2011 Eddy Award in the Conversion category for employers with fewer than 5,000 employees, from Pensions & Investments.

The Merchant Magazine May 2011

THE WINNER of a new deck contest sponsored by Arch Treatment Technologies, Atlanta, Ga., will enjoy a five-day trip to attend this year’s DeckExpo, plus a one-year membership in the North American Deck & Railing Association.

Building-Products.com

MOVERS & Shakers Nicholas Larr, ex-Capital, is new to sales at Redwood Empire, Carlsbad, Ca. Frank Hayes has joined Idaho Pacific Lumber, Boise, Id., focusing on developing sales in the Colorado market and broadening the companyâ&#x20AC;&#x2122;s industrial sales. Blair Buchanan, ex-Weyerhaeuser, has joined Allweather Wood, Washougal, Wa., as v.p. of purchasing. Kevin Jack, ex-United Rentals, has been named v.p.-finance for Capital Lumber, Phoenix, Az. Mike Kimrey, ex-American Building Specialties, is a new account mgr. in Denver, Co. Nate Rasmussen, Parr Lumber, Hillsboro, Or., has transferred to Vancouver, Wa., as regional sales mgr. for eastern Washington. Jim Polley is now assistant mgr. in Salem, Or. Steve Barber, ex-Ainsworth Lumber, is new to Buckeye Pacific, Portland, Or., focusing on panel sales.

The Merchant Magazine May 2011

Jerod Bell is now an inside sales account mgr. at All-Coast Forest Products, Englewood, Co. Rick Cornell is new to outside salesindustrial accounts at Snavely Forest Products, Phoenix, Az. Casey Garland, ex-Milwaukie Lumber and Pacific Lumber, is now purchasing mgr. of the new contractor direct division at Bridgewell Resources, Portland, Or. Sean Coughlin has joined the industrial/export trading team at Talon Forest/AFA, Portland, Or. Jayne Seagrave, marketing director, Vancouver Tool Corp., is the new president of the Worldwide DIY Council. She replaces former executive secretary Donald Droesch, who is retiring from the council. Steve McNamee has joined Huber Engineered Woods, as general mgr.-AdvanTech flooring and sheathing. Johnathan Richards is new to Hoover Treated Wood Products, as marketing designer/administrator.

Paula Presenkowski has been named v.p.-marketing for the facilities maintenance division of HD Supply, Atlanta, Ga. Hiroshi Nagai was named president of Mitsubishi Caterpillar Forklift America, Houston, Tx., succeeding Shigeru Tanemura, who returned to Mitsubishi Hq. in Japan. Scott Thomsen was named president of Guardianâ&#x20AC;&#x2122;s Flat Glass Group, effective Sept. 1. He will succeed Russ Ebeid, who is retiring after 41 years with the company. Mike Burkart, Waymark Fence & Rail Accessories, Denver, Co., has been elected vice-chair of the Vinyl Fence, Deck & Railing Manufacturers Association. Etienne McManus-White has been appointed chief marketing officer at Forest Stewardship Council-U.S. Colin Allkars is the new dispatcher at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Building-Products.com

NAWLA 2011

• New Programs for Lumber Wholesalers • Industry Forecast • Credit Outlook • Grooming Talent • Safe Shipping • Traders Market • Effective Sales Presentations • Bad Sales Advice Building-Products.com

May 2011 The Merchant Magazine

NAWLA 2011 New Business Programs

NAWLA programs help industry survivors thrive

HE WHOLESALE LUMBER INDUSTRY

has undergone transformative change over the last few years. It seems, however, that the economy is finally recovering, if slowly. It won’t be the same as before, and companies will need to position themselves to succeed. At this point, a company that made it through the recession is leaner, more efficient, and operating at lower cost. Normally, those improvements would give a company an edge over its competitors. This time, however, almost every other company has gone through the exact same improvements at the same time. Otherwise, they wouldn’t have made it. This means that companies will have to work ever harder since their competition is stronger too. This is where the programs offered by the North American Wholesale Lumber Association can help the industry.

Webinars & Distance Learning

Since so much in the industry has changed lately, NAWLA has recognized that its members and the industry are looking for ways to learn about current issues. In 2010, NAWLA recognized this and for the first time focused its education programs around four pressing topics: finance and credit availability, green building, workforce training, and the global supply chain. “We took a hard look at what we were providing our members and decided we want to get ahead of the curve,” says Gary Vitale, president and c.e.o. of NAWLA. “The industry is hungry to learn about specific topics that impact operations and our education program is now designed to provide that.” NAWLA says its webinars have been particularly effective lately, as

companies have cut back both their travel and training budgets. “The webinars allow employees to get the information they need without having the time and expense of an onsite program,” Vitale says. “It also has enabled companies to have multiple employees attend, which always helps with the takeaways and long-term implementation of the knowledge.” Over the last year, NAWLA’s webinar topics have included credit availability, China’s economic surge, the softwood checkoff, and new trucking regulations. NAWLA is already building on this foundation by hosting a webinar on May 19 with an economic forecast by Lynn Michaelis of RISI. Other topics in development include updates on China, transportation, and more green building. “We are particularly looking at the trucking industry. With the new safety regulations and the price of gas, the lumber distribution industry could see a substantial impact,” says Vitale.

Right Information at the Right Time

WOOD BASICS COURSE in March 2011 included a visit to McShan Lumber, McShan, Al.

The Merchant Magazine May 2011

The industry is moving fast and so is NAWLA, to make sure you keep up with it. Today, information moves at the speed of the Internet, but companies don’t always have the time to look for relevant issues. Companies looking for fresh, innovative, and relevant information can turn to NAWLA for help. The lumber industry encompasses many business types, from manufacturers to distributors to service providers. But they all have two things in common: they are generally focused on lumber products and they all have to manage a business operation. NAWLA is in the process of providing in-depth, detailed reports on a Building-Products.com

monthly basis to help the industry stay abreast of current issues. “This industry is at the heart of many of the big issues of the day, such as sustainability, globalization, and taxes,” says Vitale. “We need to figure out a way to inform our members in ways they can’t get anywhere else.” Vitale notes that these reports will address issues affecting both the lumber industry and small businesses. The first two topics will be the dramatic increase in China’s demand for wood fiber and the impact of California’s Cap & Trade Program. Future papers will include economic reports, business practices, and legislative reports. “The inclusion of legislative reports may surprise some people, but those have a major impact on how we all do our business,” says Vitale. “For example, how many people in the industry know that the current administration has proposed to eliminate LIFO (Last In First Out) accounting practices?” NAWLA has indicated that they aren’t trying to influence legislation and regulation, only to inform its members of what they need to know. NAWLA has long been a member of the National Association of Wholesalers-Distributors, and it uses that resource for much of its information.

Workforce Development

A company is only as strong as its employees. With the lumber industry undergoing so much change, NAWLA is building on its strong foundation of workforce development to meet the needs of the industry. For decades, the Wood Basics Course has been the flagship education course in the industry. Many of today’s leaders got their start there, and companies continue to send new employees to learn how the industry works. NAWLA offered the Wood Basics Course in March 2011 at Mississippi State University, the first time in years that it was held in the Southeast. The class was one more step in the growing partnership between NAWLA and the College of Forest Resources at MSU. In May, the school will host the first-ever career exploration workshop for the NAWLA Education Foundation. “Each Wood Basics Course

The Merchant Magazine May 2011

includes perspectives unique to the region, and by increasing our presence in the Southeastern U.S., we can better meet the needs of the industry and our members there,” says Vitale. The next Wood Basics Course will be held at Oregon State University in Corvallis, Or., Sept. 12-15, and registration has already opened. While the Wood Basics Course offers introductory education on the lumber industry, NAWLA has recently recognized the need for a next level of training. One idea they are considering is to create a second level lumber and management education program, which would create another layer of management training to the basic curriculum. “This possible new course will target managers who are already familiar with the industry. The focus won’t be production and sales, but distribution and operation,” says Vitale.

Global Networking

NAWLA is probably best known for creating networking opportunities for its members. Companies know they can go to NAWLA to learn more about national and regional networking, but they can now use their membership to help with global networks. NAWLA members are involved in both export and import activities, and carry a variety of products. Last year, NAWLA become the only association to be a member of both the Softwood

Export Council and the American Hardwood Export Council. By being a member of both organizations, NAWLA hopes to provide its members with the tools they need to succeed in the global marketplace. “Our membership in SEC and AHEC is already paying dividends. Last year, nine countries were represented at Traders Market, from four different continents,” Vitale says. “This year, in conjunction with SEC and AHEC, we’ve already met with companies from China, Brazil, Pakistan and the Mid-East about attending the show in Las Vegas.” The 2011 Traders Market will be in Las Vegas Oct. 19-21 at the Mirage Resort & Casino. Registration has already opened, and NAWLA says that the number of exhibiting companies registered is outpacing the last few years. The addition of more global buyers and suppliers to an already strong show should increase its value to everyone attending. The industry has changed the last few years, and so has NAWLA. Companies looking to find that extra edge should consider what NAWLA has to offer. Their established education, networking, and information programs can often make the difference.

– More detailed information on the services and programs offered by the North American Wholesale Lumber Association, including membership possibilities, can be found at www.nawla.org.

NAWLA met with Brazilian companies at first American Hardwood Export Council pavilion in Brazil. Building-Products.com

NAWLA 2011 By Suzanne Hearn, Forest2Market

Bad news, good news

Key risks to U.S. economy must pass before housing recovers T HE LUMBER AND building materials industry in the eastern U.S. will see some improvement in the shortterm. Unfortunately, key risks to the U.S. economy will quickly eclipse these short-term gains. Looking at the fourth quarter and beyond, the adage “bad news comes in threes” summarizes Forest2Market’s economic outlook: high oil prices will push the U.S. into the second leg of the double dip recession, and this will delay the onset of a full recovery for the housing market. The short-term improvement will come when the protracted winter weather in the Midwest and the Northeast ends. Weather there has delayed the start of the building season, significantly dampening southern yellow pine lumber prices. When spring settles in and the building season begins in earnest, three months of demand will be compacted into the remaining two months of the season. Once mills clear their existing inventory, prices will edge higher. Higher oil prices are the most significant of all the risks the economy faces at this time. Just as increased consumer spending began stimulating the U.S. economy (the key to a full-

The Merchant Magazine May 2011

force recovery), unrest in the Middle East and North Africa (MENA), increased demand for oil from Japan and China and the weakness of the dollar all combined to drive the price of oil higher. The monthly average spot price for West Texas Intermediate crude oil rose sharply in March, up from $89.58 per barrel in February to $102.94 per barrel (see chart below). We expect prices to remain high even if demand falls off in response to those high prices. When we look at the spectrum of factors that influence oil prices, they all point in one direction—up: • Investors are pricing in supply risks. Although some of the MENA conflicts appear to have passed the point of crisis, they could be re-ignited at any moment because the underlying causes of the discontent remain. • Doubt persists that production from other OPEC countries (especially Saudi Arabia) can be ramped up to replace the lost Libyan output. In 2010, Libya produced roughly 2% of the world’s supply of oil, or just under 1.8 million barrels per day. • OPEC countries argue there is little they can do to keep prices under $120 per barrel since prices are being

stoked by speculators rather than a supply shortage. UAE Oil Minister, Mohammed bin Dhaen al-Hamli, commented: “International markets are choosing to ignore market fundamentals and bet on the worse case scenarios.” • Post-earthquake idling of some of Japan’s nuclear power plants will leave a power vacuum that will be filled with more traditional power sources. Replacing this lost capacity will require the oil-equivalent of 400,000 barrels per day, about 0.5% of the world’s 2010 consumption. • Japan’s tragedy has caused other countries, including Germany, Switzerland, Italy, China, Israel and Venezuela, to consider suspending their nuclear power programs. Increased demand for oil will reflect the extent to which these countries’ programs are indeed halted. • A succession of interest rate increases in China has succeeded only in slowing the rate of growth in oil demand rather than actually decreasing it. Together, the increased demand from Japan and reduced supply from Libya, will leave a deficit of 2.2 million barrels of unmet demand in the world, about 2.5% over 2010’s level. Add to these the U.S. Energy Information Agency’s estimate of growth in global demand of 1.5 million barrels in 2011 and another 1.6 million barrels in 2012, and that total grows to 5.3 million barrels, more than 6% higher than 2010 levels. Because of these increases, oil prices are likely to remain above $100 per barrel much longer than they have in the past. At these levels, oil prices represent a key risk to the U.S. economy. Higher energy prices cut into houseBuilding-Products.com

hold budgets and siphon off money consumers would have spent in other sectors of the economy. Building products manufacturers will also feel the effects of higher fuel costs. According to the Institute for Supply Management (ISM), the prices-paid index rose by 3.0 percentage points for manufacturers in March. Wood products, construction and forestry industries all paid higher input prices in March, and inflationary concerns continue to grow. Profits margins will feel the pressure.

The extent to which higher oil prices will affect the economy is a game of probabilities. If oil prices average $100 a barrel for the year, growth could be 0.3% lower than if prices had stayed at last year’s average of less than $80 a barrel. Our forecast for GDP factors this possibility in (see chart above). If prices push even higher, to the $125-per-barrel level, economic growth would be a full percent lower. A few months at $150 per barrel and a second recession is nearly certain.

Ainsworth. Surround yourself with engineered quality.

As the chart at right shows, our forecast does show a brief downturn into the second leg of a wobbly Wshaped recession. Lasting roughly three quarters, we anticipate the bottom will be reached in the first quarter of 2012. By the first quarter of 2013, the growth rate will exceed three percent, and—barring unforeseen events—stay in positive territory. Because residential construction is a lagging economic indicator, the stalled housing market will exert downward pressure on the economy. The market for new construction continues to be abysmal: the number of building permits issued in February 2011 was 17.5% below December 2010’s level, and the number of housing starts also plummeted (see chart at far right). Builder reticence to boost activity in the short run is understandable when you take into consideration: • Inventory of existing homes is hanging just under the nine-month mark. • Inventory of new homes is nearly the same.

1 W" 0.8E Durastrand® OSL Code-approved for short-span headers.

PointSIX™ Durastrand Flooring Webstock Ainsworth OSB is used in more wood I-joists than any other brand.

www.ainsworthengineered.com

An engineered subfloor solution, with patented tapered-edge technology, designed to offset the effects of moisture exposure.

• Another 1.8 million homes are sitting in shadow inventory (in, or on the brink of, foreclosure). • Another two million homeowners are at least 50% underwater on their mortgages (some portion of these will eventually wind up in short sales or foreclosure). • Clearing the market of these issues will take two years. Several factors are exacerbating residential construction woes. Taken together, they signal that the climb out of the abyss will take longer and be more difficult than expected. • The median price of a new home is $74,500 (48%) higher than the median price of an existing home. In the past, the differential typically ran about 15%. • Home prices continue to fall. The Case-Shiller Home Price Index has declined for six months straight. According to Standard & Poor’s David Blitzer, “none of the statistics are indicating any form of sustained recovery.” • Looking ahead, the Federal Deposit Insurance Corporation (FDIC) is considering a plan to require a mini-

mum 20% down payment for most residential mortgages. The only remedy for the state of the housing market is time. Once we make our way out of the likely second recession, the two years of overhang in housing inventory will be cleared from the market. And once these two pieces of bad news are behind us, population growth and pent-up demand will drive the recovery in the residential construction market. In an average year, 1.1 million new households are formed in the U.S.

During the recession, that number fell to 0.5 million. For the period since the recession began, the backlog of demand stands at roughly 2 million households. Post-recession, household formations are expected to range from 1.2 to 1.4 annually. There, finally, is the good news. – Suzanne Hearn is sales & marketing manager at Forest2Market and host of F2M’s Economic Outlook podcast. Contact her at (704) 540-1440 or suzanne.hearn@forest2market.com. Listen to the podcast at www.forest2market.com.

For confidence underfoot – and overhead – builders trust Ainsworth Engineered. For flooring systems that lay flat and true.

SteadiTred®

For stairs that won’t cup, sag or squeak.

Bull-nosed, span-rated stair treads are code approved and ready-to-install. Engineered for the job, they save time, money and waste.

For cost-competitive, sustainably sourced products, reliably supplied, choose quality. Choose Ainsworth. 1 W" 0.8E Durastrand® OSL Code-approved for stair stringers.

Rim Board Available in various dimensions: 1" and 1 B/i" Rim Board 1 B/i", 1 W" and 1 V" Rim Board Plus E-rated 1 W" 0.8 OSL Rimboard

NAWLA 2011 By Jim Bartleson and Chuck Curl, Blue Book Information Services

Credit plays vital role in lumber industry outlook “T

are but two aspects of what is real, and whether we see the tragic or the humorous is a matter of perspective.” – Arnold Beisser RAGEDY AND COMEDY

Perspective factors heavily into any assessment of current business conditions. Many lumber companies today continue to bravely face an environment best described as perilous. Some—through timely decisions, savvy management, international opportunities, and plain good fortune—are operating profitably. To sum it up, the present business environment remains mixed at best. Credit continues to be an important element influencing these circumstances. Consumer credit is closely watched by many lumber business owners, given the obvious impact on lumber demand by housing construction and home improvements. As widely reported elsewhere, we also closely monitor employment metrics, inflationary undercurrents, tight lend-

The Merchant Magazine May 2011

ing practices, skyrocketing fuel prices, and volatile consumer confidence because of the powerful, direct correlation these factors have on industry commerce. With specific regard to credit extensions to businesses—for opera-

tional or capital requirements—we’ve observed relatively limited instances of new, expanded loan packages. Generally speaking, such programs have been issued to well capitalized firms with strong credit ratings, seeking to acquire failing companies or assets at fire sale prices. As for existing credit facilities, notes accompanying the balance sheets we review continue to reflect negotiated amendments to loan terms and covenant modifications (including required financial ratios). In addition, we have observed a number of companies reducing their reliance on bank credit or decreasing leverage by reallocating cash otherwise used for operating expenses to pay down debt. From financial statements and accounts receivable aging data, we again see a mixed bag with respect to trade credit. Here are some general observations: • Timely remittances on accounts payable continue to vary, with debtor quality and cash flow throughout the

Building-Products.com

supply chain as the logical primary determinants. As evidenced below, reported Blue Book “pay indicators” reflect this variability. For companies with reported pay indicators, about 40% pay “mostly within terms.” Nearly 35% remit “regularly beyond terms.” It should be noted, however, that this distribution of pay has been relatively consistent over the past several quarters. In other words, we have not observed a noticeable decline (or improvement) in industry pay during that span. • Overall, credit portfolio quality remains a focus. Most creditors continue to reduce their exposure to highrisk, slow-pay accounts while concentrating on the retention of moderateto-low risk accounts, even accepting some slowness in pay. Providing an industry perspective, Roger Peterson, credit manager for West Fraser Timber Co. Ltd., Vancouver, B.C., comments on the economy’s broad impacts and the real-life applications regarding trade credit: “After years of unlimited building and open purse strings, 2007 hit our industry like a ton of bricks. Credit limits were reeled in, our customers were in dire financial straits, as were the banks they were dealing with. The great recession has taught us a hard lesson. It is my belief that credit will for many years to come remain a privilege that is earned rather than a right that is given.” As observers of credit conditions for more than a century, we affirm that the circumstances of the past two years have indeed been the most challenging in more than a generation. We share the view that safely extending credit—by following sound credit policies and using trusted credit tools—is critically important. Finally, we are also optimistic that forecasts for modest reductions in unemployment will contribute to a strengthening economy. As this unfolds, we believe the credit climate—including lending and trade— will certainly improve.

– Jim Bartelson is executive v.p. and Chuck Curl is director of ratings at Blue Book Services, publisher of the Lumber Blue Book. Contact them at (630) 6683500, jbartelson@bluebookservices.com, or ccurl@bluebookservices.com. Building-Products.com

May 2011 The Merchant Magazine

NAWLA 2011 By Chuck Thomas, CT Creative

Growing talent in the lumber business

HE LUMBER INDUSTRY is facing some stiff challenges: a significant loss of businesses during the recession, a rather low profile in the public eye, and the need to bring fresh ideas and new talent to the industry. The North American Wholesale Lumber Association is working to address those challenges and create new opportunities through the newly formed NAWLA Education Foundation. The primary objective of the notfor-profit foundation is to seed growth in all sectors of the industry, by attracting a new generation of leaders and equipping them for success in building and managing sustainable businesses in the new green economy. The first initiative funded by the NAWLA Education Foundation is a three-year pilot program to introduce career development programs to college students in every region of the U.S. The very first program of its kind begins this May with a career exploration workshop at Mississippi State University through its College of Forest Resources. Undergraduate and graduate students who attend the fiveday workshop will be introduced to the entire supply chain of the North American lumber industry and will then be linked to summer internships at a variety of companies, contributing in such areas as accounting and finance, marketing and sales, engineering and operations. Gary Vitale, NAWLA president, sees benefits for the entire industry— from timberland owners to the wholesale businesses NAWLA represents to the retail sector—in this effort to

The Merchant Magazine May 2011

introduce young talent to the vast commercial and career opportunities in lumber. “As an industry, we’ve advanced significantly in technology and improving the distribution channel,” he observes. “But outside of our industry, young people are not familiar with the lumber business. They have no idea of the billions of dollars of commerce in lumber and the career opportunities available. This program is intended to educate students from a variety of majors on career options, give them hands-on experience through internships, and ultimately motivate them to make their careers in the lumber industry.” The NAWLA Education Foundation is working to identify a host university in each region to roll out the pilot program over the next three years. NAWLA has enlisted Dovetail Partners, a highly regarded think tank and educational resource specializing in the forestry and forest products sector, to work with each university to develop a career development program uniquely suited to its region’s

forestry assets and needs. The pilot workshop at Mississippi State University draws upon its relationship to NAWLA through the Wood Basics course that has been offered for years, its strength in both forestry and business studies, and its accessibility to timberlands and mills. Andy Ezell, professor and head of the Department of Forestry at Mississippi State, explains that the campus is located in the center of the “Wood Basket,” which stretches from East Texas to North Carolina and from the Gulf to Tennessee. As a result, the campus boasts its own 8,000-acre forest, where it conducts forestry research, and stands in close proximity to mills and manufacturing and distribution operations. Professor Ezell says the career workshop fills a big gap by introducing non-forestry students to the business opportunities in lumber and wood products. He believes that few people outside of the industry understand where wood comes from and how the supply chain turns tree seedlings into lumber, furniture, paper and thousands of other everyday items. “This workshop provides an opportunity for our very best students on the business side,” he notes.“The wholesale lumber sector is probably the least known aspect of the business.” In addition to MBA students and business undergraduates, the program is designed to attract students from construction, engineering, design, environmental science, and other relevant majors. The pilot Career Exploration WorkBuilding-Products.com

shop at Mississippi State includes both on-campus presentations and field trips: Day 1: The basics of forest ecology, management and certification, and a field trip to view forest management and harvest operations Days 2 and 3: The business of lumber (products/manufacturing and the supply chain/distribution) and tours of state-of-the-art sawmills, lumber manufacturing facilities, and distribution centers Day 4: Green building concepts and a field trip to see how a green building project incorporates sustainable wood products Day 5: Ecosystem markets, a career panel, and the NAWLA internship program The first workshop will set the stage for future workshops, but Vitale does not expect that the Mississippi State experience will be replicated exactly at other universities involved in the NAWLA program, due to the unique characteristics of the lumber business in each region. Also under development is the internship program, which will be available to participants in the Career Exploration Workshop. For the first crop of students, NAWLA will be instituting a system to match each student’s experience and interests with a participating company’s need for interns, whether in wholesale lumber, timberlands, or retail operations. “The career development program

is intended to be an industry-wide initiative,” says Vitale. “We anticipate attracting top, qualified students who will be motivated and excited to contribute to businesses within our industry. We encourage groups from every sector to contact us if they are interested in participating in the internship program.” The hope is that industry interest will grow as the program expands over the next three years. Still, the fledgling program is in the experimental stage. “We don’t want to do

too much too fast,” Vitale explains. “We want to make sure we do it right.”

– Chuck Thomas is president and founder of CT Creative (ctcreative.com), a Chicago-area strategic marketing firm focused on helping companies and organizations grow and thrive. In his work with NAWLA, he has overseen extensive market research and brand positioning for the lumber industry. Contact him at chuck@ctcreative.com.

Superior Service, Products & Support 100% of the Time

Distributed By

P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288

(541) 535-3465 • www.normandist.com

Building-Products.com

May 2011 The Merchant Magazine

NAWLA 2011 By Don Osterberg, Schneider National

Building the foundation for safe shipping

SA. CAPACITY. CONGESTION. Are these three words included in your business plan? Is your transportation manager thinking about the impact of these issues? Does your company have a plan for shipping its products and manufactured goods if the driver shortage impacts transportation availability? If you answered “yes,” congratulate yourself—you’re a member of a small group that is on track to ensure its products continue to ship safely and efficiently from point-of-origin to final destination. But if the questions have you scratching your head, it’s time to dive in and learn how these issues will impact your supply chain moves, cost and business liability.

CSA

In December 2010, the Federal Motor Carrier Safety Administration

(FMCSA) launched Compliance, Safety and Accountability (frequently referred to as CSA), a program that replaces SafeStat with the objective to more accurately measure the safety performance of motor carriers and commercial drivers. CSA will help FMCSA and its state partners more effectively use limited resources to identify high-risk practices and behaviors in carriers and drivers and to help reduce large truck-involved fatality crashes. CSA uses a Safety Measurement System to score carriers and drivers on safety-based violations involved in crashes and roadside inspections. The program compiles the data into seven Behavior Analysis Safety Improvement Categories (BASICs). Every inspection violation within the BASIC is time- and severity-weighted, and each BASIC is ranked to trigger an intervention process. Once a scoring

threshold is exceeded (often referred to as an alert level), a carrier will be subject to: • A warning letter • Additional roadside enforcement • On- or off-site investigation • A comprehensive review • A cooperative safety plan • A notice of violation • A notice of claim interventions CSA will put added pressure on the trucking industry. The result will be fewer—but safer—truck drivers available for hire. You can’t put a price on safety, but as the pool of available drivers with good safety records becomes smaller and competition to hire those drivers becomes more intense, it will inevitably add to the cost of transportation. In addition to the economic impact CSA will have on carriers, shippers, drivers and consumers, the public availability of a carrier CSA score may increase a shipper’s liability exposure. If a non-CSA compliant carrier is involved in a crash, liability could extend to the shipper by way of inadequate carrier qualification processes or standards in making freight tendering decisions. In litigation involving the previous safety scoring system, plaintiff’s attorneys struggled to link SafeStat scores and crash risk. With CSA, there will be no struggle linking the two. Educating transportation managers on CSA and selecting carriers compliant with CSA BASICs will be crucial to the success of shippers.

Capacity

With 758,682 carriers in the Department of Transportation’s database, only 92,184 carriers (12.15%) have sufficient data to have a CSA score. Of those carriers, 52,967 have

The Merchant Magazine May 2011

Building-Products.com

at least one alert-level CSA BASIC score. With said carriers employing more than 1.5 of the nation’s 3.6 million truck drivers, nearly 50% of the capacity is under DOT scrutiny because of high CSA scores. With the growing U.S. Truck Tonnage and Truckload Freight Index, there will be more demand for drivers. Yet federal regulations like CSA and potential changes to Hours of Service rules will combine to create a pinch in the driver pool. With the FMCSA’s proposed Hours of Service changes, we believe the rules will impact driver productivity (thus impacting capacity) and will come at a cost that cannot be absorbed by carriers alone. The market will bear additional costs in the form of increased shipping rates and decreased productivity. Reengineering existing routes, updating and testing dispatch software, renegotiating contracts and prices with customers, and retraining drivers are a few tasks that will need to be addressed when the rules change.

work to develop a system for monitoring CSA scores and tendering freight to safety-conscious carriers who will ensure their products are delivered safely. Although your transportation providers are the ones operating in this complex environment, your business can’t afford to sit back and allow the chips to fall where they may. Get smart on the issues and make sure you select transportation providers that protect your best interests. If they are

prepared, informed and operating legally, you will be in the driver’s seat when it comes to mitigating three additional important issues: risk, liability and cost.

– Don Osterberg is senior vice president of safety, security and driver training for Schneider National, Green Bay, Wi., provider of truckload, logistics and intermodal services. Contact him via www.schneider.com or get more info on CSA at csa.fmcsa.dot.gov/default.aspx.

Congestion

A final factor influencing the transportation industry is infrastructure. Government spending has been significantly underfunded for several years, resulting in excess roadway congestion. Congestion and the lack of safe truck parking are important issues on U.S. highways and are projected to worsen over the next several years. The decreased productivity that will result from the Hours of Service ruling will only accelerate congestion. Increased investment in new transportation infrastructure will benefit and improve public safety for drivers, carriers, shippers and the motoring public. Should legislation be drafted or passed, tax increases in the form of fuel or mileage user fees and tolling will be implemented to offset the cost of highway improvements.

The Blueprint for Success

To keep the supply chain running efficiently, shippers should educate their transportation teams on what is happening in the industry and learn how the changes or proposed legislation will impact shipping times, rates and business liability. One of the most important things for shippers to do is solicit CSA scores of the carriers they use. Then they can Building-Products.com

May 2011 The Merchant Magazine

NAWLA 2011 NAWLA Traders Market

NAWLA Traders Market moving to Las Vegas

OMING OFF ITS fifteenth successful year, the NAWLA Traders Market is shaking things up and moving to Las Vegas this year. It will be the first time the show is held in a city other than Chicago or Dallas. The 2011 show is slated for Oct. 19-21 at the Mirage Resort & Casino. Since 1996, Traders Market has held a unique position among lumber and building material tradeshows since it is the only one that is focused almost exclusively on the lumber sup-

The Merchant Magazine May 2011

ply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers. Last year, the show hosted 240 exhibiting companies and 1200 individual attendees, representing a total of 500 companies. These companies comprise all aspects of the supply chain: manufacturers, wholesaler-distributors, and service providers. This focus on supply chain partners

has fostered an unrivaled atmosphere for networking. In today’s global marketplace, Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million dollar deals are still made with a handshake, that personal networking is invaluable. Last year’s show in Chicago created considerable buzz. Attendance increased more than 3% over 2009. The general feeling was that the economy had finally started to turn. NAWLA has indicated it wants to build on this momentum, while increasing the value for its members and attendees. “Each year, we survey the attendees and make changes and improvements to the show based on their feedback,” says Gary Vitale, NAWLA president and c.e.o. “Last year, we changed the floor hours, increased networking time, and boosted sponsor visibility. This year, we want to consolidate our position as the premier tradeshow for the lumber supply chain.” While many of the final details of the show are still in development at this time (such as speakers), the schedule and related events have been finalized. Like last year, the floor show will be open on Thursday and Friday, giving attendees a chance to return home or to stay and enjoy Las Vegas for the weekend. Other new additions to the 2010 show, such as the Product Showcase, will also return for the 2011 show. Since the show will be on the famous Las Vegas Strip, NAWLA is planning to add some special Vegas flair to the traditional Traders Market networking and business opportunities. For example, show attendees will Building-Products.com

Respecting the forest, honoring the past, building the future. A nation’s pride you can build on.

Manufacturers of 10 million bd. ft. monthly of • 5/4 & 6/4 Ponderosa Pine Shop • 4/4 Premium Pine Board Programs • and 5/4 Radius Edge Decking Programs State-of-the-Art Hewmill & Headrig Mill Contact Sheldon Howell

Bob Bretz

(509) 874-1163

(805) 995-0700

Yakama Forest Products 3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162

www.yakama-forest.com NAWLA Traders Market, the premier trade show for lumber wholesalers and manufacturers, moves this fall to Las Vegas, Nv.

have the chance to get special discounts for Las Vegas area golf courses, providing an additional venue to conduct business. Networking receptions will take advantage of special areas at the Mirage offering a “Vegas flair,” such as Siegfried & Roy’s Secret Garden and Dolphin Habitat. “Our goal is to provide a great networking opportunity while recognizing that Las Vegas is a one-of-a-kind location,” says Vitale. “The entertainment options in Las Vegas are limitless. After the last couple of years, the industry could use having a little fun while also getting much needed work and sales done. “We’ve also recognized the global supply chain is just that: global. As the domestic market has continued to shrink, the global market is growing. We want those companies to be a part of the show also.” Over the last two years, NAWLA has rapidly expanded its participation in global issues. The 2010 Traders Market included companies from nine different countries. This year, NAWLA is working with other organizations, such as the Softwood Export Council, and the American Hardwood Export Council to connect overseas buyers and sellers. In March 2011, NAWLA visited with some of the largest lumber companies in China to talk about attending the show, and the feedback has been very positive. The Traders Market website—www.nawlatradersmarket.com—has complete information on the schedule, fees, floor layout, hotel reservations, and sponsorships. Registration has already opened for exhibiting companies and individual attendees. For the first time, registration will be exclusively online. Building-Products.com

Contractors who know quality, know Woodway. Offering Woodway products drives profitable sales and enhances your reputation. Contact us today to get started.

The best Lattice and more. Now offering Moderna Screen & Deck Squares. May 2011 The Merchant Magazine

NAWLA 2011 By Bill Blades

Prepare for meaningful sales presentations… and happy endings

HEY SAY HOMEWORK is for kids who want to get ahead in life. But the same practice holds true for lifelong learners, especially those who desire to move forward in their career. Imagine if you went to spring training and couldn’t hit a curveball. Fastballs were no problem; in fact, you often hit the hardest fastball over the fence with minimal effort. Since the curveball always made a shmuck out of you, how long would you stick around before you were sent back to the minors to figure it out? Not long! So let me start out with a few questions. Do you agree that most salespeople are boring? Most business phone calls are boring? Most business letters are boring? The only time boring is a good thing is in the mining and oil drilling

The Merchant Magazine May 2011

business. So, let me share a few tidbits so upcoming visits with clients and co-workers add a sheen to their day… and promising results to your future. If you pay attention and apply but one or two of these action items to your daily routine, you’ll find yourself as a welcome face in the big leagues with fresh ideas. It’s your willingness to adjust your swing in sales that will ultimately reward your actions.

1 . The “5 P’s” represent “prior preparation prevents poor performance.” Instead of just showing up, prepare a plan that leads to a happy ending. It’s like making a movie, but you run it backwards with the ending being “How do I want this movie to end?” Your movie includes an outline of things you want to learn and assures

success for you and your client.

2 . Remember that real selling is not telling. It’s 90% asking the right questions while taking great notes and only 10% talking. Brevity at its best. Why? Asking important questions sets you apart from the pack who just drones on and on. It’s this simple! Would you want a surgeon operating on your brain who didn’t ask questions and obtain requested brain scans?

3 . Determine the client’s personality style. Is she a driver/dominanttype person? If so, be quick and effective. Don’t ask idiotic questions such as “Oh, you like golf?” after seeing a dozen of her framed, golfing photos. Stick to the agenda of what you laid out ahead of time.

Building-Products.com

If she’s a steady/compliant person, she will want details, so utilize literature and data more than your vocal cords. Providing written data will enhance her trust in you and lower her resistance to a scary change. If she is a high-I or influencer, she’ll love to talk, which is terrific because you won’t have to. Just listen and ask questions about what you heard and take notes. If you are a high-I, be careful as two high-I’s in the same room can sound like a National Speakers Association convention, a couple thousand people talking and no one really listening. The convention sounds like a 747 going down the runway. Doing your homework will make a difference!

4 . Anyone can handle big, routine tasks, but smart people pay attention to every, tiny detail. Most people have a short attention span—for most males, it’s only about three sentences. That’s why droning on and on is a waste, for both speaker and audience. I’d trade one of my TV remote-controls any day for one that could change

salespeople until I found one I liked. Little details include using your car mirror or a restroom to insure your appearance is perfect. A loose tie is as much a killer as a bugger in your nose. Yes, I’ve seen that more than once. Remember, their first impression of you is made before the first word is ever spoken. Be the person who is both respected and admired, the versatile hitter who can hit any pitch to any part of the park at any time.

5 . What is your greeting going to be? If it’s pretty much the same for everyone, you’ll be off-target and boring. And often your first question is going to speak volumes about your personality. If your first question is the same one you used yesterday, you’re not thinking and planning. We all know that light travels faster than sound. That’s why some people appear bright—until they speak. I was field training a “salesperson,” and Russia had just invaded Georgia. The salesperson, thinking we were discussing the state of Georgia, asked, “Why Georgia and not Florida?”

6 . So, how can you set up a great first visit? When the client advises, via phone or email, to pick “any time between 9:00 and noon,” ask for 9:46 a.m., then send a written confirmation. Dear Mr. Jones, To confirm our meeting, I will be at your office: • Thursday, October 23 • at 9:39 for our 9:46

Some of you are thinking, “That’s too cutesy for me.” If so, please check your attitude and unwillingness to try new things at the door. Better yet, pack your bags and head back to the minor leagues. Even small innovation creates big differences. You’re in the people business… so set the tone that you’re a different breed. The last paragraph in your note might read: And to confirm, I’m not bringing any samples or literature. I asked for just 11 minutes to learn. You’ll like my different approach, and I’m excited about meeting you! – Czar Blades And a hand-written postcard beats

Ext. 129 - Marc

Ext. 125 - Brandon

Ext. 126 - Lorena Ext. 128 - Matt

Ext. 133 - Raul Ext. 142 - Dick

Ext. 127 - Renee

Ext. 147 - Christine Ext. 138 - Brad

Building-Products.com

May 2011 The Merchant Magazine

an email almost every time.

7 . See how the above point sets the client’s mindset into the assumption mode of “I think I’m really going to like this guy.” I coached a salesperson through the process for our initial visit with a Fortune 500 client in Atlanta. The coaching also included the salesperson not scheduling any other client visits before this important appointment. Rather, I told him to go get his car washed just before the visit. He did such, but there were several pieces of white lint on the front seats. I helped him remove them –and a smear on the passenger side window. When we arrived, the client was in the lobby. Q: And what was he holding? A: Our postcard. Q: Why was he in the lobby with the postcard? A: To see if we were on time, of course, but he was also looking forward to meeting us. We departed the lobby for the car and the client got in—and looked around the spotless vehicle. He didn’t close the car door or put his seat belt on. He then looked at the wash cloth I had the salesperson put under his

The Merchant Magazine May 2011

accelerator and said, “You’re right… you guys are different.” If you’re thinking I went to the extreme with the wash cloth idea, you’re correct. But the last thing a client sees upon your departure is the back of your jacket—and to the back of your shoes. The smallest detail can help (or hurt). All too often the client is thinking, “Is this the person I really want to hitch my wagon to?”

8 . Whether meeting with clients or co-workers, remember that many people are under some form of stress, get bored with mundane meetings, or they have many things on their mind. I co-authored a book with Bruce Jenner, the former Olympian. The publisher asked him, “How do you and your friend Billy Blades overcome attention deficit disorder?” It’s a simple formula. Major time on major things, minor times on minor things—and clients are not minor things. As I stated above, I ask important questions so that I get important information. If the client or co-worker starts meandering off-course, I’ll ask a question such as “Miss Jones, you

mentioned a minute ago that you ____________. Can you tell me more about that?” Be the orchestra conductor who controls the flow of information. Allowing them to chit-chat will trap you into a mediocre meeting—and an outcome of undesired results.

9 . Remember to limit your talking… the plague that’s rampant among the sales profession. These non-stop talkers are 98% to 99% of the sales profession, and they give the rest of us a bad name. When field training, I witness it in abundance. • Salespeople (and managers) interrupting. It’s not only rude, but you’re sending a message that what you have to say is more important than what they are sharing. • Salespeople will open their mouths repeatedly while the client is speaking. It’s a clear sign of not listening (and learning), and it alerts both the client and me that the salesperson is not listening. Incredibly, I usually make more notes than the salesperson—and the client sees and appreciates it… often with a wink or nod.

Building-Products.com

When we leave, I often ask the salesperson, “What did he mean when he said ‘____________?’” More often than not, the reply is “I didn’t hear that.” If the salesperson doesn’t interrupt or continuously open his mouth, he “steps” on the last word out of the client’s mouth. No pause or follow-up question. Just immediate talking.

1 0 . Be worldly. Read everything worthwhile so that you are constantly learning. If you can share insight on almost any topic, you’re a serious student. And if you study clients like a book, you’ll be able to clip and mail articles to a client who is keen on the subject matter. I like USA Today because the client usually reads their local newspaper. The big challenge here? Most salespeople don’t read newspapers or professional books.

1 1 . Your departure must be as cheerful and business-like as your arrival. I read in Spirit that “optimistic salespeople outsell their pessimistic counterparts by 56%.” I believe the percentage is much higher than that, but it is proof that half of the people you meet are below average. Tal Ben-Shaher, author of Being Happy: You Don’t Have to Be Perfect to Lead a Richer Life, wrote, “There are two kinds of people who don’t experience painful emotions such as disappointment or anger or envy or sadness or anxiety: psychopaths and

the dead. However, to feel happy, we need more than that. We need what we’re experiencing to be meaningful.” If you follow my suggestions, you’ll be looked to as a true provider of value at every client and co-worker meeting. Remember there also are unique opportunities to mail articles and other things to bring joy and value to others. It’s a method to grow your market.

1 2 . For worthy clients, follow up in writing to state what both you and the client agreed to do, including the due date for the next step(s). If you don’t, you’re just hoping the client will remember everything both of you agreed to do. Accountability reigns supreme, so never look at the followup card as just another client visit. Email if you wish, but icing on the cake is to also mail a handwritten note. If someone tells you life is too short to do all of these things, I suggest you tell them, “If you’re not willing to try, I’m afraid life for you will be too long.” Never argue with an idiot. He’ll drag you down to his level and beat you with experience. And besides, the idiot went down to the minors and you nailed your spot in the big leagues!

– Bill Blades, CMC, CPS, specializes in growing people and revenue in sales and leadership (www.williamblades.com). Contact him at (443) 477-0061 or wblades@aol.com.

Malheur

Lumber Co.

QUALITY PONDEROSA PINE

FSC CHAIN-OF-CUSTODY CERTIFIED SCS-COC-002883

Douglas Fir, Larch & White Fir Products

Contact Art Andrews (541) 575-1148 Fax 541-575-2512 Email: art.andrews@centurytel.net

Building-Products.com

May 2011 The Merchant Magazine

NAWLA 2011 By Dave Kahle

The absolutely worst sales advice

WAS RECENTLY ASKED what’s the worst single piece of advice to a salesperson I’ve ever heard. Wow. I loved this question. I don’t think I’d ever been asked it before. I can’t identify just one single piece of advice. I’ll have to opt for two. I’m going to identify them, and then explain why I think they are so damaging. They are “Be yourself” and “Learn on your own by trial and error.”

1. Be yourself.

I just read, on one of the LinkedIn groups of which I am a member, a newly self-appointed sales trainer advising salespeople to “just be yourself.” That is good advice if you are naturally self-motivated, goal-driven, and highly organized; if you are intelligent, personable, empathetic and sensitive; if you have great listening skills, and if you possess the ability to connect with anyone, paint word pictures, tell enthralling stories, and ask for action. If that’s not you, then being yourself isn’t quite good enough. You’ll have to work on some things if you want to become better. Almost every salesperson I have ever met,

The Merchant Magazine May 2011

myself included, has some rough spots that should be smoothed out. As a professional salesperson, you are never finished with your lifelong task of making yourself better. The ulti-

Building-Products.com

mate challenge for professionals is the constant need to change themselves in order to become better. It takes drive, discipline and energy, continually applied and rightly focused, to improve. “You’re okay the way you are” may be an idea instilled in you by your mother in order to make you feel good about yourself, but in the real world of commerce and sales, it is a bromine that takes the energy out of the process of improving yourself, and provides an easy hiding place for those who are not motivated to excel. The truth is, you are not good enough! Not yet. If you are a professional, you get that. You understand that you can, and should, continually improve and make yourself better. Vince Lombardi said, “We will constantly strive for perfection, knowing full well that we will never attain it, because no one is perfect. But we will strive for perfection, for in the process we will catch excellence.” Which would you rather? A sales force of people who think they just

need to “be themselves” to do well. Or a group that thinks they can always become better, that there standards for how you do sales well, and that they need to work hard and consistently to enhance their skills, improve their practices, and develop their competencies. A group who strives for perfection. Silly question. If a sales trainer tells you that you just need to “be yourself,” run from them.

2. Learn on you own, by trial and error.

Certainly, learning by trial and error is possible. We all do it. It just isn’t very efficient, nor very effective. When I say it isn’t very efficient, I mean that there are quicker, easier ways to learn and improve than to rely exclusively on trial and error. Look, other people have gone before you and figured out this thing called “sales.” There is a body of knowledge about how you do sales well. You can spend five years trying to figure it out on your own or you can buy a book, by someone who is an expert in it,

and learn far more in five hours. Which makes more sense? For the life of me, I cannot understand the prevailing idea among employers that their salespeople will just learn on their own, by trial and error. From my personal experience, I believe that only about 5% of employers actually invest in the growth and development of their salespeople. Nor do I understand the 95% of salespeople who have not spent $20 on their own improvement in the last 12 months. I am amazed that so many people think they have the time to learn exclusively by trial and error. I don’t. When I first began my consulting practice, I went out and got all the books on how you build a consulting practice. When I first starting speaking and presenting, I hired a coach to help me develop quickly. When I wrote my first book, I read all the books on how you do it before I began to write it. I couldn’t afford to waste time and money making stupid mistakes. When I say it isn’t very effective, I

Get valuable service from experts who understand you. A leader in the building products industry for more than 32 years, DMSi backs its Agility soŌware with unparalleled service for peak performance, ease-of-use, and ROI. To learn more, call DMSi at 800.347.6720 or visit us online at dmsi.com.

800.347.6720

MAKE TECHNOLOGY WORK FOR YOU.

Building-Products.com

May 2011 The Merchant Magazine

mean that most people, most of the time, get it wrong! Most of us, myself included, have distorted views of how we appear to other people. We have distorted views of how our actions impact people, how the customers really felt, and why we didn’t get the order. If we base our decisions about what’s effective on the basis of our perceptions of what we did well and poorly, we will be wrong much of the time. As evidence of this, I’ll appeal to your own experience. Sales managers and sales trainers, how many times have you made a call with a salesperson, debriefed afterward, and discovered that the salesperson didn’t have a clue as to what really happened in the sales call? In my experience, it is most of the time. I’m not picking on salespeople. It is human nature. We all see reality through our unique perspectives, we all put our personal spin on things. A study was done a few years ago to see if salespeople could identify their most effective practices. Two hundred good salespeople were interviewed, and they indicated the practices they thought brought them the results. Guess what happened when the researchers accompanied them into the field to verify their ideas? There was “no relationship” between what they said they did and what they actually did! Now, don’t misinterpret what I am saying. We should all learn by trial and error. Analyzing our failures and changing our behavior to avoid them in the future is a classic approach to personal growth, and a discipline to which we should all adhere. My problem is with those who promote it as the exclusive way to learn to sell well. It is neither efficient nor effective. The advice to “be yourself” and “learn exclusively by trial and error” are two of the most pernicious ideas in the world of sales. Don’t let them misguide you! – Dave Kahle has trained tens of thousands of distributor and B-2-B salespeople and sales managers to be more effective in the 21st Century economy. He’s authored nine books, including his latest, How to Sell Anything to Anyone Anytime. Reach him at (800) 331.1287 or via www.davekahle.com.

Oregon Legislators Want to Put Wood First

Oregon lawmakers are considering a “Wood First” bill that would require structures built with state funds to be constructed with wood—to the maximum extent possible and economically feasible. Introduced by Rep. Mike Schaufler (D-Happy Valley) and Rep. Sherrie Sprenger (R-Lebanon), the bill is modeled after British Columbia’s Wood First Act and would be the first of its kind in the U.S. On March 21, experts from Wood Works and the University of Washington spoke in favor of the bill, citing the structural and environmental advantages of using wood. Industry advocates include Allyn Ford, Roseburg Forest Products, Roseburg, and Andrew Miller, Stimson Lumber, Portland, who spoke on the employment benefits in rural communities. Another participant was Pat Bell, minister of jobs, tourism, and innovation in British Columbia, who helped introduce the legislation there. “Government on both sides of the border can lead by

The Merchant Magazine May 2011

Building-Products.com

example by making wood the preferred choice for public buildings,” he said. “With wood used in just 15% of commercial and institutional construction—where wood is allowed—we have a major opportunity to expand the market for wood products.”

USDA Promotes Wood as Green Building Material

At a recent event to launch the International Year of the Forest, U.S. Agriculture Secretary Tom Vilsack announced a three-pronged strategy to promote the use of wood as a green building material. “Wood has a vital role to play in meeting the growing demand for green building materials. Forest Service studies show that wood compares favorably to competing materials,” Vilsack said. The plan includes:

(1) The U.S. Forest Service will preferentially select wood in new building construction, while maintaining its commitment to certified green building standards.

(2) The Secretary asked the Forest Service to examine ways to increase its already strong commitment to green building by reporting to him on ways to enhance the research and development being done around green building materials.

(3) The Forest Service will actively look for opportunities to demonstrate the innovative use of wood as a green building material for all new structures of 10,000 sq. ft. or more using recognized green building standards such as LEED, Green Globes, or the National Green Building Standard.

In carrying out this initiative, Forest Service chief Tom Tidwell issued a directive to all units calling for increased use of locally milled timber in all new agency buildings and facilities. Secretary Vilsack also directed the heads of all other USDA agencies to incorporate the Forest Service policy of using domestic sustainable wood products as the preferred green building material for all USDA facilities and buildings. “Our country has the resources, the workforce, and the innovative spirit to reintroduce wood products into all aspects of the next generation of buildings,” said Tidwell. “As we move forward with restoring America’s forests, we are getting smarter and more efficient in how we use wood products as both an energy and green building source, which will help maintain rural jobs.” Wood products groups throughout North America applauded the announcement. Cees de Jager, executive director of the Binational Softwood Lumber Council, described the strategy as a “triple win. This will create new jobs in rural communities, reduce energy use in buildings, and lower overall construction costs in buildings.”

VAN ARSDALE-HARRIS LUMBER CO. 595 Tunnel Ave., San Francisco, CA 94134 • 415-467-8711 • Fax 415-467-8144

www.vanarsdaleharris.com

Since 1888

Specialists in upper grades of clear, dry softwoods

Douglas Fir C & Better V/G & F/G Kiln Dried Full Sawn Rough • 1", 5/4", 2", 3", 4", 6" & 8x8 • 3x6 DF Select Dex Double T&G Decking Sugar Pine • 4/4 -16/4 C & Btr. • 5/4 & 8/4 D Select • 6/4 & 8/4 Mldg. • 5/4 #1 Shop • 5/4 x 12 #2 Common • 4x4 #2 Common Ponderosa Pine • 4/4 Clears, Moulding, #3 Clear, Commons • 2x4, 2x6, 2x12 Std. & Btr. Dimension Western Red Cedar Clear V/G & F/G Full Sawn Rough • 1", 5/4", 2" Kiln Dried • 3", 4", 6" Air Dried Timbers Alaskan Yellow Cedar C & Btr. Kiln Dried Rough • 4/4, 8/4 Poplar, FAS • 4/4, 5/4, 6/4, 8/4, 12/4 Sitka Spruce B & Btr. V/G Kiln Dried Rough • 4/4, 8/4 Honduras Mahogany, FAS Pattern Grade • 4/4, 5/4, 6/4, 8/4, 10/4, 12/4, 16/4

THUNDERBOLT WOOD TREATING …Quality Wood Treating Services Since 1977 “We Treat Wood Right”…

www.thunderboltwoodtreating.com

Treating Services Only (TSO)

Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA

ACQ • CCA • BORATES D-BLAZE® • ACZA (CHEMONITE®))

Bob Palacioz, sales/marketing mgr. • bob@thunderboltwoodtreating.com (916) 402-3248 • Fax (916) 339-2477

Heat Treating • Drying Services (KD, KDAT) Marine Piling • Staining Service • Rail Siding (BNSF) Coating Serv ice: MFI-SLO8 Marine Grade Spray Polyurea Coating

Marine & Industrial S ales Miguel Gutierrez • miguel@thunderboltwoodtreating.com (209) 747-7773 • Fax (209) 451-0425

Building-Products.com

May 2011 The Merchant Magazine

ProBuild Adopts FSC Certification

ProBuild Holdings, Denver, Co., has received Forest Stewardship Council chain-of-custody certification for 59 of its lumber facilities, including 20 in the West. “We have made a commitment to become FSC certified in markets where customer demand dictates,” said c.e.o. Bill Myrick. “We support all types of wood certification programs so that we approach sustainability in a measurable, accountable and responsible way. This is only one step in our much longer journey to green as a company.” Certified locations include a truss plant in Arlington, Wa.; distribution center in Butte, Mt., and yards in Anchorage and Fairbanks, Ak.; Sedona, Az.; San Diego and Soquel, Ca.; Meridian, Id.; Billings, Butte, Great Falls, WHOLESALE ONLY • MILL DIRECT & LCL

WHERE QUALITY IS AGELESS Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers

CALL SALES AT (800) 400-8383 • (951) 681-4707 Rick Anfinson • Carol O’Connor Outside Sales Darin Curran

(949) 412-1894

Visit our website:

www.anfinson.com

Fontana, CA Office and Mill: 13041 Union Avenue, Fontana, CA 92337 Fax: (951) 681-3566 • E-mail: sales@anfinson.com

Helena and Kalispell, Mt.; Albuquerque, N.M.; Clackamas, Or.; Midvale, Ut., and Kennewick, Olympia, Spokane and Yakima, Wa. In all, ProBuild operates more than 450 locations, making it the nation’s largest lumberyard chain.

Ace Closing Due to Safety Concerns with Historic Building

An Ace Hardware store located on the second floor of a historic building in downtown Edmonds, Wa., is holding a liquidation sale and will close June 15—just two years after opening in the renovated space. In a letter to the community, Ace Hardware said that the building was not “designed or constructed to support the weight of a hardware store,” and it “did not make economic sense to spend the time and resources to upgrade the building when it was already usable as retail and office space.” According to the chain, necessary repairs would take months and disrupt business for the store and other tenants of the building. Due to safety concerns, paint and other heavy items were moved before the sale. At this time, a suitable downtown location for the store has not been found.

LCA Gives Thumbs Up to CA

A new cradle-to-grave Life Cycle Assessment shows Wolmanized Outdoor wood treated with copper azole offers substantial environmental benefits over composite decking. Conducted for Arch Treatment Technologies, Atlanta, Ga., by AquAeTer, Nashville, Tn., the LCA indicates that composites requires 15 to 17 times (depending on preservative formulation) more fossil fuel and 2.4 times more water than Wolmanized Outdoor wood, while resulting in emissions with potential to cause 2.9 to 3.0 times more greenhouse gas and 5.0 to 6.5 times more acid rain. LCAs have been done on wood, treated wood, and micronized copper processes, but this is the first cradle-tograve LCA on wood protected by micronized copper azole. “Because our base product is wood,” said Kirk Hammond, sales manager of Arch Wood Protection, “we have long believed that preserved lumber offered environmental benefits. This study proves that our beliefs were well-founded.”

TREATERS

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected FSC Certified SCS-COC-002513

909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – sales@fontanawholesalelumber.com

www.fontanawholesalelumber.com

The Merchant Magazine May 2011

Building-Products.com

NEW Products

Thicker Trim Profiles

A thicker 1”x6” profile from Versatex Trimboards is ideal for a variety of traditional architectural styles. The new profile is designed for 16” on center fastening, in standard 18’ lengths in either edge and center bead or edge bead only.

VERSATEX.COM (724) 857-1111

Tougher Trimboards

AuraLast wood exterior trimboards are new from Jeld-Wen. The solid-pine boards are protected by a non-toxic, vacuumpressure treatment offering surface-to-core protection from rot, termites, and water saturation. Three different thicknesses and two profile styles (smooth and rough sawn) are offered preprimed and ready for painting.

JELD-WEN.COM (800) 877-9482

Tough as Nails

TUFO Ballistic NailScrews have been developed in 305 stainless steel for coastal areas. Both the 2-1/2” and 3” flathead screws include #2 square drive inserts for easy installation. The fasteners reportedly can be used with all kinds of decking and fencing, plus subfloors, and shear walls.

911-NAILS.COM

(800) 352-0028 SUREDRIVE.COM (800) 951-2222

YOUR BEST CUSTOMERS. You know who they are. The ones who spend a little more and PAY A LITTLE QUICKER. The guys who don’t mind paying more for quality… because they expect to. They’re always working. .. THESE GUYS ARE UBERGRADE. GRK IS THEIR BRAND OF SCREW and they don’t accept substitutes.

Building-Products.com

800/263-0463 - GRKFASTENERS.COM May 2011 The Merchant Magazine

Beauty of a Deck

Fiberon’s Pro-Tect Decking combines the look of natural wood with a non-organic surface material that resists stain, fade, scratching and mold. The new decking comes in 12’, 16’, and 20’ grooved boards and 20’ square-edge boards. Colors include Canyon Brown and Harbor Gray.

FIBERONDECKING.COM (800) 573-8841

The Merchant Magazine May 2011

Heat-Hardened Deck

Thermally modified southern yellow pine decking and railing from EcoAdvantage promises lower maintenance and increased durability. Profiles include standard decking in 5”, 6-3/4”, and 8-1/2” wide boards and crown decking 5” wide. Both profiles are available in a grooved style that works with the EcoDeck Clip system.

ECOADVANTAGE.COM (260) 337-0338

Siberian Decking

SiberWood is all-natural, with no added chemicals or treatments, yet is resistant to decay. Manufactured from Siberian larch, the product can be stained or left to weather naturally to a silvery gray. Deck boards are 5/4x6 with smooth or grooved face, while porch flooring is 5/4x4 and 1x4 tongue-and-groove.

SIBERWOOD.COM (770) 631-8673

Building-Products.com

Resurrected Wood

Montana Ghostwood from Bitterroot Valley Forest Products reportedly has the natural appeal and appearance of reclaimed wood, at a fraction of the cost. A majority of the timber is salvaged from standing beetle- or fire-killed stands. Available sizes are 1”x4” through 2”x12” in any profile, in timbers up to 20”x20” and 32’ in length. Two textures—weathered and circle-sawn weathered—come in four rustic colors.

MTGHOSTWOOD.COM (877) 626-1505

Capstock PVC Decking

Kleer Lumber’s new cellular PVC decking is protected by capstock technology. The Coastal collections features a woodgrain texture in two lighter colors, while the Sierra collection includes five earth and tropical colors. Lengths of 12’, 16’, and 20’ are packaged in 48-piece units. Matching fascia boards are 12’ long, packaged in 24-piece bundles.

KLEERLUMBER.COM (866) 553-3770

Building-Products.com

May 2011 The Merchant Magazine

All-American Aluminum Fencing

Delgard’s American Series fencing is made in the U.S. of 50% recycled aluminum. Each 1”x5/8” picket comes in 6’ sections. They are available in five styles, with three styles of matching gates.

DELGARD.COM (800) 235-0185

Old World Craftsmanship In Today’s Designs

Hand Hewn Distressed Timbers Geo. M. Huff Lumber Company is now offering Hand Hewn Distressed Timbers in a variety of sizes, shapes and lengths. All our distressed beams are WCLIB grade stamped and will meet structural and architectural applications. All are hand tooled and can be ordered with custom stains and Old World finishes. We can supply timbers to any specification, whether it is Dense, Free of Heart Center, #1/Btr, Select Structural, Green or RFV Kiln Dried. When a plan calls for exposed posts and timbers, count on us to provide you with a product that will last a lifetime. Combine our selection of Douglas fir timbers along with our skilled milling staff and you’ve got one of the best resources in Southern California.

HUFF LUMBER COMPANY SANTA FE SPRINGS, CALIFORNIA

800-347-4833

The Merchant Magazine May 2011

Redwood Decking & Railing

The California Redwood Co. now offers a new decking profile and two new specialty railings. Part of the Heritage Collection, the Cascade board profile has a crowned top, beveled edges, and drip lines on the bottom. Both Estate (2x4 and 2x6) and Vista (2x4) railings are gently crowned for water shedding and durability.

CALIFORNIAREDWOODCO.COM (866) 797-7474

Now on Deck

Ipe Clip Fastener Co. is rolling out its own DeckWise brand of decking tools and accessories. Stainless steel screws have a self-tapping point to ensure minimal grain tear out and quick installation. Heads come in stainless or Colormatch black and brown to match various species. Drill&Drive four-in-one tool allows builders to pre-drill, countersink or counterbore, then flip the countersink insert and drive the screw. Hardwood plugs, in ipé, cumaru, tigerwood, garapa and massaranduba, are carefully milled to provide a tight fit even in the hardest boards. Deck spacers come in five sizes, each a different color.

DECKWISE.COM (866) 427-2547

Building-Products.com

In-Deck Storage Kit

Co-Extruded Railings

Deckorators CXT co-extruded railing from Universal Forest Products combines the look of wood with low maintenance. Contemporary and Colonial profiles are offered in 6- and 8-ft. lengths and 36” and 42” installed heights. Both have pre-drilled rails for faster installation and U-brackets that provide a fastener-free look.

AZEK’s newest kit allows homeowners to store outdoor items within their decks. When topped with AZEK decking, the 6 ft. by 17.5 cu. ft. storage box blends with the surface of the deck. A specially engineered frame supports up to 500 lbs. across the lid surface, and is designed to prevent water infiltration. Matching hardware is available in two finishes.

AZEK.COM

(877) 275-2935

DECKORATORS.COM (800) 332-5724

Illuminating Railing Cedar-Look Fencing

Fiberon’s new composite post-and-rail fencing features the look of rustic cedar, with low maintenance. Available in Coastal Cedar, the product has 1.5”x3.75” horizontal rails and 3.5”x3.5” routed posts.

FIBERONDECKING.COM (800) 573-8841

Building-Products.com

RadianceRail Express is TimberTech’s latest railing solution. The single-rail product is made of composite capped with a layer of PVC, both 36” and 42” high. Rail packs come in 6’ or 8’ sections that are pre-routed and include mounting hardware. Baluster packs come in 36” and 42” square profiles.

TIMBERTECH.COM (800) 307-7780

May 2011 The Merchant Magazine

LAHC AT THE RACES Photos by Walter Ralston

PHOTO FINISH: The Los Angeles Hardwood Lumberman’s Club enjoyed its annual Day at the Races April 16 at Santa Anita Park, Arcadia, Ca. [1] Jim & Shirley Caldwell, Dale Bohannon, Samantha Caldwell, Dan Bohannon, Kit Kohm. [2] Shelly, Megan, Andrew & Sarah Nelson, Tony &

Amy Moyer. [3] Tim & Becky Peterman, Dennis & Vickie Johnson, Tim Mathew. [4] Walter Ralston, Charley James. [5] Charlotte Etheridge, Don Reel, Sergio & Cassie Korn. [6] Lisa Burcke, Andrew & Shannon Jaramillo, Ken Miller, Candace & Paul Pendergast.

Big Creek Lumber Co. has a long history of practicing superior forest stewardship — growing, selectively harvesting and milling high quality California redwood.

During our 63 years in the redwood business, Big Creek has developed a reputation for being a reliable supplier of high quality lumber. We produce a wide range of grades and dimensions, custom cut timbers, pattern stock and fencing. Order full, mixed or partial truckloads.

For highly experienced and personalized service contact Frank “Lud” McCrary, Janet McCrary Webb or Jim Busick

3564 Hwy. 1, Davenport, CA 95017

(831) 457-5024 • Fax 831-423-2800 www.big-creek.com • janetw@big-creek.com

The Merchant Magazine May 2011

Building-Products.com

LACN GOLF Photos by The Merchant Magazine

LUMBER ASSOCIATION of California & Nevadaâ&#x20AC;&#x2122;s annual PAC golf tournament was April 14 at Black Gold Golf Club, Yorba Linda, Ca. [1] Ken Dunham, Jean Henning. [2] Mike Kemp, Tim Kennedy, Kevin McLernon, Larry Christensen. [3] Glenda DeFrange, Andy Salazar, Karen Glover. [4] Pat Woolstenhulme, Sal Camarda, Jerry Mosier, Bill Young. [5] Terry Rasmussen, George Ritter, Buck Byers, John Pasqualetto. [6] Jeff Norihiro, Danny Sosa, Kurt Robbins, Dean Costello. [7] Kelly Lyon, David Iblings, Rolando Robles, Richard Rios. [8] J.D. Building-Products.com

Saunders, Rich Langton, Mark Huff, Troy Huff. [9] Ron Hillman, Matt Lapp, Tom Angel, Craig Evans. [10] Mark Ganahl, Dan May, Omar Diaz, Sal Castillo. [11] Rock Lee, Carlos Gonzalez, Brian Newell, Bob Watson. [12] Frank Bader, Curt Nierman, Randy Jackson, Jim Nicodemus. [13] Sheldon Doss, Doreen Meeks, Rod Forsch, Pete Ganahl, Melissa Greyson, Grant Pearsall. (More photos on next two pages) May 2011 The Merchant Magazine

LACN GOLF Photos by The Merchant Magazine

LACN GOLF (continued from previous page) in Yorba Linda: [1] David Smith, Chris Johnson, Johnny Pringle, Jason Sumpter. [2] Aly Kingsley, Chris Bailey. [3] Tom Baxter, Al Reed, Ted Smith, Greg Hexberg. [4] Pat Hawthorne, John Allen. [5] Deonn DeFord, Craig Young, Greg Stout, Brad Satterfield. [6] Geoff Crandlemire, Tino Lizardi. [7] Ryan

The Merchant Magazine May 2011

Lauterborn, Donald Maize, Mike Walther. [8] Monica Bartko, Richard McArthur, Natalie Allen. [9] Larry Stonum, Chris Freeman, Joe Allotta. [10] Alan Oakes, Shannon Mott, Doug Willis. [11] Tim Hummel, Scott Crutchfield, Chris Skibba, Chris Manning. [12] Paul Hamilton, John Neel. (More photos on next page) Building-Products.com

LACN GOLF Photos by The Merchant Magazine

MORE LACN GOLF (continued from previous two pages): [1] Erik Batson, Steve Mitchell. [2] Jonathan Behr, David Hollingsworth, Aaron Howe, Eric Kitei. [3] Russ Primrose, Carlos Gonzalez, Brian Newell, Bob Watson. [4] Alan Schall, Steven Ceriani. [5] Troy Allen, Chris Quezambra, Debbie & Michael Quezambra. Building-Products.com

[6] Jarrett Deschenes, Chuck Casey. [7] Chris Thoman, Joey St. Amant, Dale Verseput. [8] Mike Caputo, Dave Miller, Ron May. [9] Don Kavert, Heath Stai, Ryan Mitchell. [10] Russ Rust, Scott Derham. [11] Bill Ferguson, Carl Henoch, Sean Burch, Doug Radestock. [12] Keith Lyng, Nick Larr. May 2011 The Merchant Magazine

IN Memoriam

Joe Hearin, 99, retired president and founder of Hearin Forest Industries, Portland, Or., died April 11 in Medford, Or. In 1943, he moved to Medford to run his first lumber mill and in 1954 opened wholesaler Hearin Lumber, Largo, Fl. He retired in 2004, at 92.

Jim Ballin, 67, retired sales manager at Columbia Forest Products, Portland, Or., died April 19 in Stevenson, Wa. He entered the industry in 1968, when he went to work at Diamond Lumber, Tillamook, Or. He launched his own company, Building Products International, in 1983, to import Asian and South American plywood, veneer, and timber. Ten years later, he became import manager at Timber Products, Eugene, Or. He joined Columbia in 1999, retiring in 2007. He also served as president of the International Wood Products Association from 2003 to 2005.

David F. Ponts, 62, longtime North Bay lumber broker, died April 3 in Santa Rosa, Ca., after a 12-year battle with prostate cancer. After attending Santa Rosa College in the late 1960s, he began his 40-year career in the lumber industry. He worked at Morgan Creek Forest Products, Healdsburg, Ca., from 1993 to 2005, then Siskiyou Lumber, Woodland, Ca., until retiring last year to his ranch outside Santa Rosa.

The Merchant Magazine May 2011

Steven Sandlin, 62, co-owner of Sandlin Lumber, Las Vegas, Nv., died April 8 in Las Vegas. He and his wife, Beth, started the company in 1981.

Robert “Bob” Halbert, 79, former operator of Halbert’s Lumber, Torrance, Ca., died March 25 after a long battle with Alzheimer’s. After serving in the Marine Corps, he opened his own yard in 1966 and continued until 1991. Wayne Cundiff, 79, retired partowner of Sun Valley Door & Supply, Phoenix, Az., died March 24 in Happy Jack, Az. During the Korean War, he served with the Navy. He worked at Arizona Millwork, Phoenix, before joining Sun Valley Door. Ralph Tadashi Yamaki, 90, retired owner of Waipahu Hardware & Lumber Supply Co. and W Hardware & Lumber Supply Co., Waipahu, Hi., died April 10 in Pearl City, Hi.

Glen Allen Winkle, 76, retired Oregon lumberman, died April 12 in Turner, Or. After serving in the U.S. Navy during the Korean War, he spent 16 years as planing and shipping foreman for Burkland Lumber Co., Turner, followed by 16 years as planing and shipping superintendent at Taylor Lumber Co., Sheridan, Or.

Building-Products.com

Coos Bay Line Nears Restart

The Port of Coos Bay, Or., has selected ARG Trans, Benson, Az., as preferred operator of its 133-mile Coos Bay rail line, with hopes to restart the line this summer. The former Central Oregon & Pacific track, closed since 2007, was purchased by the Port in 2009. Renamed the Coos Bay Rail Link, the line is undergoing nearly $24 million in repairs and upgrades. Partial service is anticipated to resume in the summer, with full operation expected in the fall. ARG also operates San Pedro & Southwestern Railroad and a transload facility serving southeast Arizona.

U.S. Timberland Ownership Undergoes Transformation

The changing face of timberland ownership in the U.S. has made supply agreements and timber leases prominent parts of land transactions, according to the recent Warnell Center for Forest Business Timberland Investment Conference. Just 10 years ago, forest products companies owned approximately 20%

Building-Products.com

of private timberland in the U.S., primarily in the South. By the end of 2010, most of this land had changed hands, some tracts multiple times. Most of the remainder had moved to different ownership structures. The top 10 forest products companies reportedly owned 38.7 million acres in 2000. Today, the top 10 firms hold only 21.5 million acres. Four of the top five are Real Estate Investment Trusts (REITs), tax-advantaged entities with timberland/real estate as their principal business. Timberland Investment Management Organizations (TIMOs) purchased many of these acres. In 2000, Hancock Timber Resources Group was the only one with more than three million acres. Ten years later, the three top TIMOs each held more than 3 million acres and the top 10 TIMOs held more than 20 million acres. Over the past decade, transition activity peaked at about 7 million acres in 2006 and by 2010 had fallen back to 2000 levels. Land prices also fluctuated. Prices averaged about $800 per acre nationwide from 2000 through 2004, peaked at almost $1,800 per acre in 2007, and returned to 2006 levels last year.

May 2011 The Merchant Magazine

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month.

HELP WANTED

FACILITIES FOR LEASE

IDAHO PACIFIC LUMBER is an employeeowned company looking for commission-based salespeople to work either in your established market or in our Boise, Idaho, office. This is an excellent opportunity to build a career in the building materials industry. Not only can you earn a high income, but you also can earn a piece of the company. We are seeking salespeople who are highly motivated, aggressive, and great with people. The abilities to stay organized and deal with time pressure are also important. You can learn more about us at our website at www.idapac.com. For consideration, please send a cover letter and resume to kberg@idapac.com.

FOR SALE

OFFICE & WAREHOUSE FOR LEASE: Northern California Sacramento region. Approximately 2,000-sq. ft. office attached to 30,000-sq. ft. warehouse. Warehouse clear span height 20 ft. Office & restrooms ADA accessible. Warehouse includes three-man doors with large 20-ft. roll-up door. 220V power available. Fire sprinkler system throughout. Truck shop facilities provided, including minor repair work, oil changes, steam cleaning, etc., at favorable rates. Ample truck parking space in back of facility. Office & 30,000-sq. ft. front warehouse available at .29¢ per sq. ft. If interested, please call Tom Williams, (530) 7422168, between 8 a.m. and 5 p.m.

Instant Industry News Building-Products.com

Order Blank

CLASSIFIED ADVERTISING – Fax to 949-852-0231 or email to dkoenig@building-products.com –

$1.20 per word (25 word minimum).............................._____

9.00 per line of headline or centered copy ..................._____ 9.00 border ..................................................................._____ 15.00 private “blind” box ..............................................._____

TOTAL _____

($55 per column inch for camera ready copy; $65 if we set type)

TO RUN: ____ TIMES

_____ TILL FORBIDDEN

Name ______________________ Phone (

) ______________

Address ______________________________________________

City ______________________ State ____ Zip _______-_____

COPY ________________________________________________

The

MERCHANT Magazine

keeps you up to date on industry issues throughout the West. Now find out what’s happening on the other side of the Rockies.

Keep track of the Rest

______________________________________________________

Building Products Digest

______________________________________________________

Contact Heather at (949) 852-1990

______________________________________________________

Keep track of the West

The Merchant Magazine May 2011

covers the other 37 states, including the Midwest, Southeast and Northeast. Subscribe for just $24 for 12 issues. HKelly@building-products.com

Building-Products.com

DATE Book

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

International Wood Markets Group – May 10, Global Wood Products Industry & Market Conference, Westin Bayshore Hotel, Vancouver, B.C.; (604) 801-5996; www.woodmarkets.com.

National Hardware Show – May 10-12, Convention Center, Las Vegas, Nv.; (888) 425-9377; www.nationalhardwareshow.com. North American Retail Hardware Assn. – May 10-12, convention, Bellagio Hotel, Las Vegas, Nv.; (317) 290-0338; www.nrha.org.

Los Angeles Hardwood Lumberman’s Club – May 12, ladies night, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Remodeling & Decorating Show – May 14-15, Pasadena, Ca.; (818) 557-2950; www.thehomeshow.com. American Wood Protection Association – May 15-17, annual meeting, Fort Lauderdale, Fl.; (800) 356-1974; www.awpa.com.

Lumber Association of California & Nevada – May 15-17, Central California mill tour; (800) 266-4344; www.lumberassociation.org.

Forest Products Society –May 16-18, international conference, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Lumber Association of California & Nevada – June 2, associates/dealers golf tournament, Rancho Solano Golf Course, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org. Willamette Valley Hoo-Hoo Club – June 3, golf tournament, Shadow Hills Country Club, Junction City, Or.; (541) 688-6675.

American Architectural Manufacturers Association – June 5-8, national summer conference, Hyatt Regency, Minneapolis, Mn.; (847) 303-5664; www.aamanet.org. Western States Roofing Contractors Association – June 5-8, convention & expo, Peppermill Resort & Casino, Reno, Nv.; (800) 725-0333; www.wsrca.com.

Los Angeles Hardwood Lumberman’s Club – June 9, election night, Moreno’s Mexican Restaurant, Ca.; (626) 445-8556; www.lahlc.net. Tuolumne Lumber Jubilee – June 9-12, Tuolumne, Ca.; (800) 2666436; www.tuolumnelumberjubilee.com.

National Retail Federation – June 13-15, loss prevention conference & expo, Gaylord Texan Resort & Conference Center, Dallas, Tx.; (800) 673-4692; www.nrf.com.

National Lawn & Garden Show –June 14-16, Crowne Plaza Hotel & Conference Center, Rosemont, Il.; (888) 316-0226; www.nlgshow.com.

Green Contractors Expo – May 17-18, Convention Center, Las Vegas, Nv.; (800) 859-9247; www.greencontractorsexpo.com.

Forest Products Society – June 19-21, convention, Doubletree Hotel, Portland, Or.; (608) 231-1361; www.forestprod.org.

Southern California Hoo-Hoo Club – May 20, 4th annual Don Gregson Memorial golf tournament, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; www.hoohoo117.org.

Remodeling & Decorating Show – June 25-26, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950; www.thehomeshow.com.

Black Bart Hoo-Hoo Club – May 20, trap shoot & BBQ, Black Point Sports Club, Petaluma, Ca.; (707) 588-7613.

Do It Best Corp. – May 21-23, spring market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Building-Products.com

PCBC – June 22-24, Moscone Center, San Francisco, Ca.; (800) 956-7469; www.pcbc.com. Western Wood Preservers Institute – June 26-29, summer meeting, Inn & Spa at Loretto, Santa Fe, N.M.; (800) 729-9663; www.wwpinstitute.com.

May 2011 The Merchant Magazine

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

Advantage Trim & Lumber [www.advantagelumber.com]..........63

Capital [www.capital-lumber.com]..........................................47, 57

Distribution Management Systems [www.dmsi.com] .................49 Enduris [www.enduris.com] ..........................................................31

AERT [www.aertinc.com]......................................................Cover II

Exterior Wood [www.exteriorwood.com] .....................................20

Anfinson Lumber [www.anfinson.com]........................................52

Fiberon LLC [www.fiberondecking.com] .....................................15

Ainsworth [www.ainsworthengineered.com] .........................34-35

Bear Forest Products [www.bearfp.com].....................................45

Fasco America [www.fascoamerica.com]....................................65

Fontana Wholesale Lumber [fontanawholesalelumber.com].....52

Big Creek Lumber [www.big-creek.com] .....................................58

GRK Fasteners [www.grkfasteners.com].....................................53

Boise Cascade [www.bc.com].......................................................63

Huff Lumber. ...................................................................................56

BMD Inc. [www.bmdusa.com] .......................................................26

Cabot [www.cabotfactoryfinish.com] ...........................................25

Cal Coast Wholesale Lumber ........................................................18

Hoover Treated Wood Products [www.frtw.com]........................54 J.M. Thomas Forest Products [www.thomasforest.com] ...........48

Keller Lumber .................................................................................62

California Cascade [www.californiacascade.com]......................11

Krauter Solutions [www.krauter-storage.com]............................36

California Timberline [www.caltimberline.com] ............................4

LWO Corp. [www.lwocorp.com]....................................................43

California Redwood Co. [www.californiaredwoodco.com]...........3

IDEA File

Offering free residential delivery—24 hours a day, seven days a week—is earning rave reviews for a hardware chain in San Francisco, Ca. “There are a myriad of reasons why shopping can be a hassle. We get it, and want to eliminate them,” says owner Rick Karp. “Our Rewards customers just have to tell us what they need.” Before the new service started in late March, store employees handled the weekend-only deliveries. But when more customers said they would prefer receiving orders during the week, Cole signed up with a company that specializes in 24/7 deliveries. Karp says that in urban areas such as San Francisco, off-hour deliveries are not unusual. “More people work from home or have other than 8-to-5 work schedules,” he says. And even though the service is available 24/7, he says that most deliveries occur evenings before midnight and mornings after 5 a.m. To get the ball rolling, customers call one of Cole’s four stores during regular business hours (7 a.m. to 8 p.m.) to place an order ($25 minimum). For anyone who’s not already a member of the rewards program, signup is free. “We wanted to keep the minimum at $25, just like Amazon, to build the awareness that retail stores can compete with online vendors,” he says. As larger orders come in, they help to offset the cost of delivering the smaller ones. “Services like this help us differentiate ourselves from other businesses,” says Karp, who noted that the first big box entered San Francisco last fall. “We also want to maintain our reputation as the little hardware store with big, creative ideas.” House Calls at Midnight

The Merchant Magazine May 2011

Louisiana-Pacific Corp. [www.lpcorp.com] .................................26

Malheur Lumber [www.ochocolumber.com]................................47

Mary’s River Lumber [www.marysriverlumber.com] ..................41

Master Mark Plastics [www.rhinodeck.com]................................62

McFarland Cascade [www.mcfarlandcascade.com] ...................23

Neiman Enterprises [www.neimanenterprises.com]...................42 Norman Distribution [www.normandist.com] ..............................39

North American Wholesale Lumber Assn. [www.nawla.org] .....50

Nyloboard [www.nyloboard.com] ...................................................5 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....37 PPG Industries [www.ppg.com] ....................................................29

Redwood Empire [www.redwoodemp.com] ......................Cover IV

Reliable Wholesale Lumber [www.rwli.com] ...............................46

RISI [www.risiinfo.com/chinatimber] ............................................44

Roseburg Forest Products [www.rfpco.com]....................Cover III RoyOMartin [www.royomartin.com] .............................................21 Screw Products [www.screw-products.com] ..............................13

Simpson Strong-Tie [www.strongtie.com]...................................19 Siskiyou Forest Products [siskiyouforestproducts.com]...........55

Sunbelt [www.sunbeltracks.com] .................................................39

Swanson Group Sales [www.swansongroupinc.com]................33

TAMKO Building Products [www.evergrain.com] .........................7

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....51 Universal Fastener Outsourcing [www.911-nails.com] ..............22

Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net] ....51

Viance [www.treatedwood.com] ...........................................Cover I Wahoo Decks [www.wahoodecks.com] .......................................24 Western Red Cedar Lumber Association [www.wrcla.org]...60-61

Yakama Forest Products [www.yakama-forest.com]..................43 Building-Products.com