The Merchant Magazine - January 2013 by 526 Media Group

ALL ABOUT SIDING n iPADS AT THE LUMBERYARD n WESTERN WOODS UPDATE JANUARY 2013

The

MERCHANT

Magazine

THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

The true strength of a genuine Simpson Strong-Tie® connector doesn’t come from the steel or the fasteners. It comes from the rock-solid reputation and expertise of the company behind it. Don’t settle for anything less. Insist on genuine Simpson Strong-Tie connectors. To learn how our commitment to quality, innovation and support adds value to you and your business, call (800) 999-5099 or visit strongtie.com/genuine.

Enter to Win Prizes

Strong-Tie Company Inc. DTC13

Share Your Genuine Story Visit www.strongtie.com/genuine

January 2013

The

MERCHANT

Special Features TABLET COMPUTERS AT THE LUMBERYARD

10 PRODUCT SPOTLIGHT CEDAR SHAKES VS. SHINGLES

11 PRODUCT SPOTLIGHT FIBERGLASS SIDING LOOKS UP

12 MARGIN BUILDERS SELLING ALTERNATIVE TRIM PRODUCTS

20 SPECIAL FOCUS: WESTERN WOODS UPDATES ON: • WESTERN DESIGN VALUES • PROP. 64 • PRICES • DEMAND • SUPPLY • EXPORTS •WWPA MEETING

40 PHOTO RECAP: 2ND GROWTH HOLIDAY

The Merchant Magazine

Magazine

In Every Issue

9 FEATURE STORY

Volume 91 n Number 7

January 2013

6 TOTALLY RANDOM 14 COMPETITIVE INTELLIGENCE 16 OLSEN ON SALES 17 GREEN RETAILING 32 MOVERS & SHAKERS 34IN MEMORIAM 36 NEW PRODUCTS 40 ASSOCIATION UPDATE 42 CLASSIFIED MARKETPLACE 45 DATE BOOK 46 IDEA FILE 46 ADVERTISERS INDEX

Online BREAKING INDUSTRY NEWS, INDUSTRY PHOTO DOWNLOADS, & THE MERCHANT: DIGITAL VERSION BUILDING-PRODUCTS.COM CHANGE OF ADDRESS Send address label from recent issue, 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 796560) 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®2013 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.

Building-Products.com

TOTALLY Random By Alan Oakes

The

MERCHANT

Magazine

www.building-products.com A publication of Cutler Publishing 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Moving forward and upwards

IRST, A BELATED but Happy New Year. I hope you had a chance to enjoy the holidays, recharge the batteries, and prepare for what could be a good year—provided a deal was struck to solve the “fiscal cliff” crisis. I have no doubt a deal of some type will be reached, but I hope it is one that it is reasonable. I already sense during my calls that small business owners are very wary of the outcome. I can already hear that with the impact of the new health care plan really coming to light, we are still in a fragile space and the recovery we are beginning to sense could go back in the other direction. We have all fought hard to keep our businesses operating, we have all cut costs and seen diminished returns, and we have done our very best to keep our people employed—we do not need any additional hits. I hope by my next column the uncertainty will be over, as uncertainty can cause more harm than the outcome. Once a year, we tend to look back and reflect on the year just passed—the successes and failures, in both our personal and business lives. There is no doubt that in both cases our expectations have been lowered compared to perhaps any time in our lifetimes—especially in this industry. Downturns are normally 18 to 24 months, not six years. After all that has happened these past years, by all accounts 2012 was a steady year. It was relatively quiet, despite the divisive election. In our industry, we started to sense for the first time that the tide is turning. So, perhaps a B-. Not great, but welcome stability after a horrendous 2011. As I reported last month and sensed everywhere I traveled, the mood is changing. You can already see some smiling, and hope is hanging in the air. Most stats show improvement. Employment is modestly better. Banks seem to be giving out mortgages and loans a little easier (although maybe not to this industry). The housing numbers are improving, albeit shadows of their former selves. The stock market is hanging in there, despite worry about the cliff. Manufacturing is slighttly improving. Even Apple announced it will start making some Macs here. While the stats show we still have some way to go, improvement is measured in inches and the transition to a growing economy has begun. We are all mostly more efficient out of necessity, and this is perhaps both good and bad for the market to come. So what can go wrong? External to our industry, bad economies elsewhere could bring a chill. Europe is in duress pretty much everywhere and the Middle East seems under constant stress. The good news is that the U.S. economy has stood tall this year throughout the various crisises abroad. I think the biggest issue in this industry in a growth scenario will be lack of supply. I am already hearing about sold-out positions and with so much less capacity, production cannot be increased at the flip of a switch. Also, with so much human capital experience having been lost in the downturn, it will be difficult to staff up again. Credit limits and lines that have been lowered in recent years might not be able to change fast enough to keep pace with higher volumes of business. Transportation will be a huge issue at some point again, too. Therefore, it will be hard to meet market demand at some point (with all that means), and it takes very brave senior management to recommend to the board to start expansion ahead of the curve, with always a sense of insecurity about what will hit next. But I am getting ahead of current reality—we are not there yet. In some ways, it’s a nice position to be in after what we’ve had to deal with in recent years. I suspect, though, that we have learned the hard way and will not succumb to the excesses of 2004 to 2006. If 2013 shows a steady increase over 2012, I will be happy to take that! Again, have a great year and I look forward to seeing you on my travels. Stop me and say hello.

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 James Olsen Jay Tompt Carla Waldemar 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 Alan Oakes, Publisher ajoakes@aol.com

BACK ISSUES $5 + shipping

8k_bZ M_j^ Ekh Ijh[d]j^" 9ekdj Ed Ekh <_h[ H[i_ijWdY[

BF <bWc[8beYa <_h[#HWj[Z EI8 I^[Wj^_d] LP® FlameBlock™ Fire-Rated OSB Sheathing offers you the best of both worlds—impressive structural strength and remarkable burn-through fire resistance. Created by applying a patented, non-combustible Pyrotite® coating to LP® OSB panels, LP FlameBlock Sheathing is an ICC certified (ESR-1365), PS2-rated structural sheathing with a Class A Flame Spread Rating. It provides extended burn-through resistance, delivering a 20-minute thermal barrier (ASTM E119). It’s durable on the job site, easy to work with, and is Exposure-1 rated to withstand rain during normal construction delays. LP FlameBlock Sheathing is cost effective and available in a variety of PS2-rated thicknesses and lengths, including Struc-1. And from an environmental perspective, it contains no hazardous chemicals. Backed by a 20-Year Transferable Limited Warranty, LP FlameBlock Sheathing is the panel to count on when every minute matters. For more information on LP FlameBlock Fire-Rated Sheathing, call LP Building Products at 1-888-820-0325.

OSB

SmartSide®

SolidStart®

TopNotch®

TechShield®

CanExel®

LPCorp.com/FlameBlock

FEATURE Story iPads at the Lumberyard

Dealers, distributors latch onto tablet computers A

LBM DEALERS and distributors retool and recharge, many are bringing tablet computers into their businesses—often starting with the “road warriors” in outside sales. The top choice in the LBM industry appears to be the leading option for consumers, Apple’s iPad, first released in April 2010. The mobile devices are gradually making inroads into the business world—especially among smalland medium-sized companies—because owners and employees want to bring the convenience of a tablet to work. At Boston Cedar, Mansfield, Ma., the first step was to begin replacing aging Blackberrys with iPhones. Then, in April 2012, laptops were gradually replaced with iPads. “One of our owners got an iPad and he was sold,” says Angie Wallert, director of information technology, who oversaw implementation for 12 employees who mostly work outside the office: eight outside salespeople, plus four more in education and training. “They tended to take notes during the day and use their laptops at night, because they were hard to use in the car and took time to boot at customers’ offices,” she notes. “Tablets are lighter, easier to use and carry, no booting, so they are easier and faster to use reactively with customers.” Best of all, the employees have a host of documents and information at their fingertips, on the tablet, instead of reams of paper in their briefcases. In less time than making a phone call to the office—for sales information, deliveries, etc.—they can quickly get all the answers they need and keep customers engaged in the process. At Parr Lumber, Hillsboro, Or., iPads were implemented last summer, at the company’s Cascade Wholesale Hardware division. Ten outside salespeople, mostly older employees with little or no experience with tablets, quickly embraced the ease and efficiency of the devices. The experiment went so well that the company wants to implement tablets throughout the company. “Obviously, we believe there’s a real case to be made for iPads and tablets, which are lighter and more mobile than laptops,” says Ken Munson, who handles IT for Parr’s 23 retail locations, cabinet design center, a structural components plant and installer, and its marketing group. “Price-wise, it’s $600 to $700 for an iPad versus $2,000 for a new laptop.” Outside salespeople at Ridgefield Supply, Ridgefield, Ct., also received iPads this past summer, joining the iPhones they already had. Now, owner Margaret Price Sims wants to bring the devices into other parts of the business. S

Building-Products.com

OUTSIDE SALESMEN in the lumber industry have begun toting iPads in (Photo by Entree) place of overstuffed briefcases.

“The new technology allows our sales team to go out and have instant information,” she says. “It’s important to wrap up business quickly. They can check pricing, create quotes, place orders, and check on delivery status.” Mike Sonderman, an outside salesperson who works with Sims on technology issues, says that Ridgefield’s enterprise software is on a desktop service so it can be accessed with mobile devices. The company’s quoting software doesn’t work on the desktop, but salespeople can access a manufacturer’s quoting software if it is websitebased. He believes that “being able to change and work in any environment” is what’s most important. When queried by other dealers, Sonderman advises them to keep mobile devices and company information secure. “It’s like locking the door to your house at night,” he says. “You have to keep your website safe.” He advises the use of a mobile device management system that allows a remote lock or complete data wipe if a device is lost or stolen. Sims says that the increased efficiencies of new technology help offset lost margins. “Consumers, even those who may have contractors, do research to get the cheapest price,” she says. “Dealers have to fight for the business, and new technology helps.” January 2013

The Merchant Magazine

PRODUCT Spotlight By Brian Kirkey, Ecoshel Inc.

The difference between cedar shingles and shakes T

between cedar shakes and shingles is less clear now than it was 50 years ago. Initially, cedar shingles were sawn from a block, while cedar shakes were split off using a mallet and froe. Cedar shingles are more precisely milled than shakes, and provide a more refined classic appearance, which is well suited to a wide range of styles. Shingles were the siding of choice for the post-Victorian “shingle style” of the late 19th century, as well as for the many styles of the Arts and Crafts period. Cedar shingles were very prevalent in the hundreds of Craftsman-style bungalows designed by Gustav Stickley, and were frequently specified for both roofing and siding installations. Cedar shake installations provide a more irregular, rustic appearance. They make a less sophisticated, more charming statement that works well for some smaller cottage styles. Most cedar shakes today are made by machines, and are sawn on at least one side. Shakes are sometimes machine-grooved to appear more like HE DIFFERENCE

The Merchant Magazine

authentic hand-split shakes. Although cedar shakes today are seldom hand split, they still follow the dimensional rules of their predecessors, which vary by grade. Shakes are thicker than shingles, ranging from 1/2" to 3/4" or greater at the butt end, while shingles range from about 3/8" to 1/2". Functionally, the most important difference between cedar shakes and shingles is that shingles are milled more precisely than shakes. Cedar shakes are more irregular and don’t lay as flat when installed. This creates gaps that can be penetrated by wind blown precipitation. Because shakes can be penetrated by wind-blown rain or snow, a layer of felt paper is required between courses for roofing installations. Interleaving felt paper helps blocks wind-blown precipitation, and also allows shakes to be installed with two layers of shakes and one layer of felt paper—rather than three layers of shakes, which would be quite thick. Unfortunately, when installing cedar shakes, many roofers take

January 2013

advantage of this felt interlayer as a license to ignore the code requirements. Joints between cedar shakes must still be offset by at least 1-1/2" from course to course. When joints in adjacent courses are aligned, or nearly so, the only protection from the elements is the felt paper, which has already been riddled with nail holes, and is easily torn. The felt underlayment was designed for temporary protection and as a secondary barrier for sparse and intermittent leaks, not as a primary weather barrier. Cedar shingle installations are more precise, lay flat, and are never installed with felt interleaving. For roofing, shingles are always installed so there are three layers of shingles at any point. Cedar shingles, properly installed as three overlapping layers, provide a highly weatherproof system, even in extreme weather. – Bryan Kirkey is president of Ecoshel Inc., Atlanta, Ga., manufacturer of a patented cedar shingle system for siding and roofing. Reach him via www.ecoshel.com. Building-Products.com

PRODUCT Spotlight Fiberglass Siding

Fiberglass siding looks up L

OOKING TOWARD increased remodeling activity and new-home construction, Marvin is spreading the word about its newest product: fiberglass siding with the look of wood, without the maintenance. Named Apex, the siding is made of Ultrex, a fiberglass material developed and patented 20 years ago for Marvin’s Integrity- and Infinity-brand windows and doors. Produced in Marvin’s 110,000-sq. ft. manufacturing plant in Fargo, N.D., the fiberglass siding represents the company’s first expansion into other building products. “Innovation is the key to growth in today’s business world,” says president Susan Marvin. “Apex represents an innovative use of a proprietary technology that’s already been proved in tens of thousands of homes across the U.S.” Apex’s story began in 1990, when Marvin partnered with John Jambois to form Tecton Products in Fargo. Once Ultrex proved itself in Marvin’s windows and doors, it was time to look toward other product categories. In 2006, Tecton launched its structural siding line. Three years later, Tecton became a wholly-owned subsidiary of Marvin and the new product—now named Apex—was formally introduced. Despite the economic downturn, the product received notice as a good-looking alternative to traditional wood siding or other alternative siding materials. According to Marvin, Apex is the first fiberglass siding

NEW PRODUCT has received notice as a good-looking alternative to traditional wood siding—or siding materials. Photos courtesy Apex Building-Products.com

FIBERGLASS doesn’t expand, so individual pieces can be butted tightly together for a pencil-thin joint.

that can be installed in overlapping boards, like traditional wood siding. The product is available in 10 colors, two widths—4” and 7”—and in either a smooth or woodgrain finish. Other pluses: • fiberglass doesn’t expand, so pieces can be butted tightly together for a pencil-thin joint • the durable, acrylic finish is four times thicker than paint, for increased resistance to fading and chipping • a built-in water management system lessens susceptibility to mold and rot • it is lighter than other siding materials, which makes it easier to work with and install “It truly looks like a mill-finished piece of wood,” says Bruce Peter, owner of Just Exteriors Plus, Wappingers Falls, N.Y. “It captures the appeal of wood, without having the maintenance.” Peter also appreciates that Apex is environmentally friendly. “Fiberglass is made of sand, just like glass is made of sand,” he notes. And unlike vinyl, it’s not petroleumbased so VOC gases aren’t released during manufacture and all leftover materials are ground up and reused. “With fiberglass, there’s nothing but advantages.” Currently, Apex is distributed by United Products Corp., St. Paul, Mn. (in Mn., N.D., western S.D., and Wi.); Parksite, Batavia, Il. (in Me., N.H., Vt., Ma., Ct., R.I., and eastern N.Y.), and Universal Supply, Hammonton, N.J. (N.J., southeastern Pa., and northern De.). January 2013

The Merchant Magazine

MARGIN Builders PVC & Urethane Exterior Trim

Growing your business with alternative trim products

opportunities for your business in 2013? Search no further than your trim product offerings. During the past decade, alternative trim products such as PVC, polyurethane and composite products have become favorites with builders and remodelers, and for good reason. Dollar for dollar, it’s more cost effective to install alternative products on a home than wood. That’s what experts at Market Resource Associates discovered when doing a hands-on comparison field study of professional contractors. “Our research shows that contractors save on time and labor by installing urethane products versus using built-up traditional wood pine pieces,” says John Cashmore, thenpresident of MRA. “Overall, using urethane products saved our research participants up to 19% on labor over a similar project that required wood product. We observed that using urethane products required less skill on the part of the professional installer and ensured a higher, repeatable quality element than when wood was installed.” For the research project, a small group of trade contractor participants were asked to create two entryway surrounds—one from built-up wood pieces and the other from a Fypon urethane door surround kit. MRA findings in the study include: • Built-up wood systems require substantially more time and dedication toward measuring, re-measuring and checking than the urethane system pieces. • The quality of work supplied by different contractors tremendously affects the look of the finished product. Those home exteriors in the study with wood built-up pieces showed dramatic inconsistency. Home exteriors with OOKING FOR GROWTH

The Merchant Magazine

January 2013

urethane pieces installed showed consistency of product appearance. • Repetitive use of built-up systems (for example, in town homes) will have more continuity and accuracy when using standardized urethane pieces. • Jobsite waste was significantly less for the urethane products than the wood pieces. • Installation skill level needed for installing urethane products was far less than for piecing together a built-up wood system. Thus, subcontractors may be able to more successfully work with the urethane pieces than the wood products.

Exterior Door Surrounds According to the independent research done by MRA, when analyzing an exterior enhancement project, urethane tops wood for savings. Installing a set of urethane plain fluted pilasters flanking an entry door and topping the door off with a crosshead costs an average of just $44 for labor and takes under an hour. To create the same door surround out of built-up wood is estimated to cost an average of $181 in labor and can take up to four hours for the same project. By offering fast “out-of-the-box and onto the house” urethane products, building product dealers can provide their customers with products that speed up installation times and save on jobsite labor. The additional benefits of urethane products—which can include shutters, window surrounds, soffit systems, and mouldings—include resistance to decay, water damage, weather and insect infestations. The high-performing products are available in hundreds of styles from various manufacturers nationwide. Many contractors already understand that urethane products are best for replacing built-up wood assemblies like crossheads, dentil moulding, window and door trim—anything with a three-dimensional profile. With urethane products there is also the ability to get one-of-a-kind custom pieces created that can set projects apart.

PVC on the Rise For builders and remodelers looking for an alternative to wood, PVC is a strong fit for replacing flat wood stock or Building-Products.com

CONTRACTOR tops off a door surround with urethane millwork pieces that look like wood.

similar profiles. Long-term performance and appearance of PVC trim and board sheets are two of the most important attributes dealers can promote for these products. Since PVC products come with the option of smooth or woodgrain surfaces, these products are widely accepted by contractors needing products that are easy to work with, and won’t warp, split or check. Some PVC manufacturers offer conveniently packaged PVC trim products that make it easy for dealers to offer the product to their customers. Manufacturers offer PVC trim profiles in a variety of popular styles. The smooth profiles—including crown, base cap, brick mould, drip cap, historic sill, quarter round, rake moulding, rams crown, and Scotia cove mouldings—often come ready to use and easy to install. Dealers can also offer millworkgrade PVC board products, including bead board, corners, sheets and boards, that come in easy-to-stock carton packaging. Each piece of PVC is individually shrink-wrapped and placed inside the carton to protect it from dirt and blemishes once the carton is opened. These pieces can be used for corner trim, fascia and soffit system applications, window and door Building-Products.com

All photos courtesy Fypon

casing, wainscoting and flat panel applications. PVC products are impact- and moisture-resistant and do not have the potential to absorb water, making them an ideal long-term product for the interior or exterior of any project. The density and cell structure of the PVC allows the product to cut smoothly without chipping, making it the perfect material for routing and

milling. Dealers looking to stock PVC trim and board products should seek those offered by manufacturers that provide a limited lifetime warranty on the product. A large advantage of PVC products is that they may be placed directly against masonry without fear of decay or water absorption. They have no above-grade distance requirement and they will never rot.

Thanks to our customers and vendors as we begin our 27th year • Tyvek • Garden Products • Building Materials • Panels • LP Siding Panels, Lap & Trim • Industrial Lumber • Salvage & Surplus

Riverside, CA

877-369-2327 “Caring about customers is our business” January 2013

The Merchant Magazine

COMPETITIVE Intelligence By Carla Waldemar

Hunting tons of business F

OR YEARS , John Huntington and his brother, David, third generation in the family business, ran the Huntington Lumber Co. the way their dad—and granddad before him—had. No need to rock the boat in sleepy, little Hazelhurst, pop. 4,500, smack in the land-locked middle of Mississippi. They did a pretty good contractor trade out of the puny, 3,000-sq. ft. space. (Okay, it was cramped beyond belief, but the help could locate most of the SKUs even if their customers couldn’t.) But Roy, their regional services rep from Do it Best, kept up his tirade—

“Man, you really need to build!”— until whenever John saw the guy coming, he cringed, then hung his head and tried to look busy. “But he made a strong case,” John had to admit, when cornered. “We had to do it; we’d outgrown our space.” So two years ago, lured in part by attractively low interest rates, and the detailed planning help Do it Best provided, the brothers caved. They set about building a brand-new store which not only doubled the size, oh no, it ballooned it to 15,000 sq. ft.— five times its former footprint. The year-to-year sales skyrocketed

EXPANDED PAINT and other departments has boosted Huntington Lumber’s business to consumers to 70% of sales compared to…

The Merchant Magazine

January 2013

82%, and margins mushroomed by six and a half points. Oh, and John doesn’t hide from his Do it Best rep anymore. “Now I love him to death.” And customers, needless to say, are thrilled. Contractors now encounter expanded lines of plumbing, electric, hardware and paint, to name a few. Brand-new departments include tools, lawn & garden, and housewares. And a whole new customer base has darkened the doors—the walk-in warriors of town, reversing the 70/30 pro-toretail ratio to 30% pro and 70% retail, which, in this age of rigor mortis in home construction, has saved the day. “I wonder what our last year would have been like if we had not done the expansion,” says John with a mix of awe and horror. “Now, anybody who walks in can find anything they want.” The expansion goes beyond mere floor space. It was time to part with the easier, traditional ways of doing business, too (“We were old-school”), so (initially unwillingly, it’s true) they decided to open on Saturdays for the first time ever. Not that the brothers were all that eager to jump out of bed on a weekend, but apparently their customers were. “I was amazed!” John reports. “People kept coming up to me and saying, ‘Thank you!’—the walk-ins, the pros, even other business owners. It was a rewarding and a humbling, experience.”

… PREVIOUS customer mix had been 70% professionals, before the construction slump. Building-Products.com

NEWLY BUILT store came just at the right time for Mississippi dealer.

Staff has nearly doubled, to 20, too. “Experienced people would be best, but they’re hard to find,” he allows, so Huntington’s able old-timers trained the new crew, with a bit of help from vendors. “We didn’t know a lot about retailing, so it’s been a learning experience.” Yet the launch went well, indeed. “We did a contractors’ night before we opened, then held a huge grand opening—very successful,” he reports. For several weeks, Huntington held a Saturday sale for which they used 750 five-gallon buckets and invited customers to fill them up and receive a 20% discount on everything those pails could hold. Did the promotion generate new business? “Very much so!” John is happy to report. “I was surprised at the number of new faces. We’d mailed circulars to towns 20 miles away, and folks drove in for the bargains. Will they come back? Well, we’ll be topof-mind.” A showroom was on the books for the original, now vacated, store, but times have been just too busy to get to it (a happy problem). Next year! Nor does the outfit retain a dedicated outside salesperson yet. “But we have a real good construction salesman, a 19year veteran. Still,” John ponders, “we need to look into that….” Meanwhile, Huntington installs the flooring it sells, thanks to a manager who’s a longtime flooring guy. For other projects, the outfit recommends its trusted contractor customers—a win/win that keeps all three parties satisfied. Huntington also operates a construction business of its own, run by both brothers, who each take on projects in turn as they roll in, making it a point to decline those upon which their own contractor customers have bid. Building-Products.com

“We step away from that,” John makes it clear. “But the construction business takes a lot of our time. With our new investment in the store, we’ll need to balance it more. It helps in overhead—definitely—but we definitely need to focus attention on the store. In the past, the two businesses were split 50/50, but these days it’s a little different. We did the addition at the right time. If we’d stayed where we were…” he shudders at the very thought. “There’s very little construction business going on around here, so without the (new) walk-ins, where would we be? “This year, we’re seeing a few more higher-end houses—around here, that means over $200,000—but in general, it’s repairs and additions. Contractors who, if you asked them to do decks a couple of years ago, would laugh—now they’re eager for the business.” And these days, the Huntington brothers are well-equipped to serve them. The addition has made them virtually the only act in town—a onestop shopping experience other local stores can’t equal. And John loves

every minute of it. Who knew? Not he. Not brother David. Not even their dad. He sent the two boys away to medical school (which, yes, they completed) but just when John was wondering what direction his life would then take, Dad made an offer. “Come home and work here while you figure it out.” That was in 1985, and he’s still figuring. “If I hadn’t come back after finishing college, I wouldn’t have had the relationship I have with my dad. Growing up, he was always busy, so Dad and I weren’t close. Now, we’ve travelled to Europe together and have a really good relationship. I would have missed out on that,” he muses. “I like the quality of life here in Hazelhurst—lots of timber around here, too. I like helping the little old lady looking for an air filter, and I like building a home for somebody. You’re always helping people figure out a problem. Plus, I get to work with family, and it doesn’t get much better than that.” – Reach Carla Waldemar at cwaldemar@comcast.net

LP® SmartSide® Trim & Siding products offer the beauty of cedar with the advantages of engineered wood. That means consistent boards with no knots or voids. An industry-leading warranty that provides a 5-year, 100% labor and replacement feature and a 50-Year Prorated Limited Warranty on the substrate. And our proprietary SmartGuard® process that ensures LP SmartSide products resist fungal decay and termite damage. LP SmartSide Trim & Siding. All the advantages you need. Distributed By

Rocklin, Ca. • 800.348.1400 Sanger, Ca. • 559.876.3624

January 2013

The Merchant Magazine

OLSEN On Sales By James Olsen

Finding Mr. Right B

USINESS OWNERS, sales managers, and G.M.’s tell me, “James, we are looking to hire a salesperson. What we want is a guy/gal in his mid-thirties, preferably with a family (we like a guy who has responsibilities—married guys and gals with kids and a mortgage are easier to motivate. We all know what single guys are thinking about, and none of us has any idea what single women are thinking about!). “We want him to have a book of business that doesn’t conflict with any of our current account assignments. We want him to be a guy who doesn’t rock the boat. We want him to be able to fit into our culture. And, please, no baggage, drugs, alcohol, family problems, personal emotional issues, etc. “Signing bonus? We don’t want to pay him a signing bonus—I told you no prima donnas—sheesh, are you listening? We’ve got guys that are currently working for us who do his numbers. We didn’t pay them signing bonuses. That’s a big risk for us. What if he doesn’t work out? Besides, what does he need a signing bonus for? If he is that good, he’ll make that money when he comes to work for us. Because we do ________ better than where he is now, when he starts to sell ________, his commissions will pay for his move, right?”

The above expectations are restrictive. I know hundreds of salespeople and 95% of them don’t fit the above description. How we are going to grow their business based on finding an almost perfect candidate? This is as untenable as the salesperson who will only open “perfect” accounts; it just does not work as a sales growth strategy. It is one-sided. Salespeople who have built a following at one company take a big risk when they move. They leave behind a competitor with intimate knowledge of—and an established relationship with—their clients. No matter their talent, they will be in for the fight of their sales lives when they move. Is Mr. Right out there? Yes. In fact, one of the main responsibilities of sales management is to be on the lookout for talented salespeople who want to change companies for any reason. But this cannot be the only part of the strategy. It is too inconsistent.

Your Foibles ≠ Company Values I have a client who does not like serving the emotional needs of his sales team. Heck, he thinks it’s unprofessional to even bring such things up at work. I tell him that sales has its own brutal natural selection and that if he puts his

The Merchant Magazine

January 2013

own personal leadership filter (I only want the emotionally stable) on top of this natural selection, it will narrow the field of candidates even more. Growing a sales force will be challenging enough. Your company culture and values are important. But don’t confuse them with your personal preferences. Make sure that your requirements are based on performance and results and less on your personal desires or prejudices. (And give them a hug for crying in the sink!)

Budget for Growth Companies that are unrealistic in terms of hire date, speed to profitability, and that do not budget accordingly will have inconsistent growth. Companies that are great at sales growth: • Budget statistically. They budget realistically for the success/failure rate for sales hires. • Are realistic in time to profitability forecasting. • Have great training programs. • Hire slowly—multiple interviews with multiple levels in the organization. Potential hires speak with different salespeople and leaders within the organization. • Fire quickly. They have a plan and patience, but if the salesperson just can’t do it, then they cut the cord quickly. • Fire the unproductive. If unproductive salespeople are not fired, there is no budget for new blood.

Look for and Hire Attitude The two most important ingredients of the successful salesperson are empathy and the will to conquer/win (Mayer and Herbert Harvard Business Journal 2006). Do not confuse empathy with likability or you will end up with a sales force that wants to be liked more than it wants to win. Business experience is helpful, but more important than product knowledge is people knowledge. Knowledgeable information dispensers will be overwhelmingly outsold by empathetic sellers with a killer instinct. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

DEALER Briefs Carl’s Ace Hardware Store, Peoria, Az., was opened Nov. 27 by Steve Herrgesell, his son Carl, and daughter-in-law Faith. The elder Herrgesell formerly operated Ace stores in Tempe and S. Phoenix, Az. TV HOST Jason Cameron is spokesperson for ProWood professional-grade lumber products from Universal Forest Products.

UFPI Rolls Out Pro-Grade Brand Universal Forest Products, Grand Rapids, Mi., has taken its ProWood brand to a new level, offering prograde products to both contractors and serious do-it-yourselfers. “For years, we used the ProWood name to identify a number of highquality Universal products,” said president and c.e.o. Pat Webster. “Today, ProWood is the exclusive brand for our treated lumber and outdoor products that are backed with a lifetime limited warranty, from dimensional lumber and decking to finished products, like fencing. It’s the all-in-one solution for pro-level performance

Building-Products.com

from pressure treated wood.” According to brand manager Chris Fox, another upgrade is the availability of Dura Color infused-color technology for dimensional lumber. “If it comes with a ProWood end-tag,” he said, “you can be sure the product will perform.” Jason Cameron, licensed contractor and host of DIY Network’s Desperate Landscape and Man Caves shows, was recruited to introduce the products through a new website, social media, print ads, point-of-purchase programs, videos, a deck contest, and much more.

January 2013

Ace Hardware, Suisun City, Ca., has closed after reportedly losing its lease. Edmonds Hardware & Paint, Edmonds, Wa., opened Nov. 20 in a former Ace Hardware storefront (Fred McKelvey, store mgr.). Owner Tom Paik also operates three other hardware stores, including 2-unit Tweedy & Popp. Lowe’s applied to build a 111,415sq. ft. store with 26,568-sq. ft. garden center in Yakima, Wa., to replace an older unit in neighboring Union Gap, Wa. The chain also is expanding its contact center in Albuquerque, N.M., adding 300 customer service jobs.

The Merchant Magazine

GREEN Retailing By Jay Tompt

Green retailing and the lesson of resilience T

of year when we get to take a step back from the day-to day grind of running the business and reflect on the year that was. Why? To learn, so we can do what’s necessary to improve in the coming year and into the future. The first step is looking at the business metrics, comparing performance against plan, and so forth. Diving into the numbers is necessary, informative, and boring as hell. You’ve got to do it and in times of certainty and little change, it’s sufficient. But that’s not the world we live in. More enlightening is taking the time for deep reflection on strategy. If you’re a lone wolf who does best keeping your own counsel, head off by yourself to some place that inspires you. Take the time to consider what you know, and don’t know, about the changing world you live and do business in. If you lead a management team, take them on a “visioning” retreat that will afford the space and time to adequately consider the new context within which your business operates. What lessons have you learned? This past year—with shifting climatic patterns, extreme weather events, unstable macro and regional economic conditions, and rising energy prices—gave a taste of what’s in store in coming years. Against this background, construction activity is trending up, especially green building, so that’s a somewhat predictable constant, but being prepared for an uptick in green building isn’t the same as being prepared for Hurricane Sandy. If there’s one lesson I’ve learned from this past year, it’s that we need to think hard about how we can build resilience into our communities and businesses, and into the built environment, generally. Resilience is loosely defined as the ability of a system to absorb a disturbance and continue functioning without collapsing—in other words, “bounce-back-ability.” This is critically important as we enter a new era of super storms, volatile energy prices, and shifting economic priorities. How can we continue to function even when lights go out for days, supply HIS IS THE T IME

The Merchant Magazine

January 2013

chains are cut, or fuel prices suddenly skyrocket? In practical terms, we can begin to outline what this might mean for the home and shelter supply chain, generally, and for individual dealers. More green building products and materials, yes, but what else? Robustness, redundancy, and diversity are three key attributes of resilient systems and are concepts that might inform new product development, categories, and services. Can we retrofit homes to withstand 150-mph winds? Can we build backup energy systems that don’t rely on gas or diesel? Can we develop multiple sources of supply for essential goods, multiple sources of income, and multiple sources of finance? These kinds of questions will undoubtedly gain in importance over the next few years. Obviously, last year was crazy, but we can learn some good lessons from it. More importantly, this industry is already in a good position to begin developing resilience within, as well as helping our customers, stakeholders, and wider communities do the same. What that looks like will differ depending on local conditions. Maybe one day, home centers will include a “resilience department” wedged in between plumbing and electrical. Whatever the future holds, we’ll be better prepared by thinking deeply about the lessons we learned this past year. Jay Tompt Managing Partner Wm. Verde & Associates (415) 321-0848 info@williamverde.com www.williamverde.com Building-Products.com

All-Coast Exits Southern California All-Coast Forest Products, Cloverdale, Ca., is closing its Southern California distribution yard in Chino and selling the assets, including inventory and equipment, to Capital Lumber, Phoenix, Az. The deal is set to close by Jan. 31. Capital will consolidate operations at its own Chino facility. All-Coast, which will continue operating DCs in Cloverdale and Englewood, Co., reportedly has found another buyer for its Chino property.

Judge Blocks Murphy Sale The c.e.o. and co-owner of Murphy Co., Eugene, Or., has been granted a preliminary injunction preventing his three partners from selling the company. John Murphy claims that a sale would violate his 2001 contract with former c.e.o. Peter Murphy Jr., Dennis Murphy, and Edward Murphy (see November, page 31). The county circuit judge ruled that the company could not be sold until John Murphy received a trial. He also denied Murphy’s request for a court-appointed appraiser to determine the value of company stock, as well as his partners’ request to summarily dismiss his lawsuit.

Arizona Mill Construction Nears Pioneer Forest Products expects to begin construction early this year on a sawmill in Winslow, Az. The facility will cost an estimated $230 million and could eventually employ as many as 600 workers. “We’re still working on the funding,” said Herman Hauck, c.e.o. of Pioneer Associates. “We’re working hard to try to make (a first quarter start date) happen.”

SUPPLIER Briefs Boise Cascade, Boise, Id., has filed with the Securities & Exchange Commission for a proposed initial public offering of its common stock. Oregon Canadian Lumber Products , North Plains, Or., suffered a Nov. 30 fire at its kiln control room, caused by a malfunctioning fan assembly. PRO Group, Denver, Co., has been acquired by president and c.e.o. Steve Synnott from Gary Cosgrave, who will remain on the board. Canfor Corp., Vancouver, B.C., is investing $40 million in its Elko, B.C., sawmill, including expanding its drying capacity and building a planer mill. Stimson Lumber Co. , Portland, Or., sold 28,000 acres of wildlife habitat in northwest Montana as a conservation easement to a public trust, to be managed by Montana Fish, Wildlife & Parks. The land will remain a working forest with high standards for species conservation and public access. Boral Composites, Roswell, Ga., won LEED silver certification for its Boral TruExterior Trim plant in East Spencer, N.C., which was completed in 2011. Contact Industries, Portland, Or., has redesigned its website at www.contactind.com.

JAACO CORPORATION Premium Stainless Fasteners

SPECIALTY, QUALITY BEST YOU CAN GET EVERYDAY.

AISI 304/305/316 Stainless Nails/Staples/Collated Screws Distributors are welcome

TEL: 425-441-6008 Building-Products.com

Web: www.jaaco.com January 2013

The Merchant Magazine

SPECIAL Focus Western Woods By Hakan Ekstrom, Wood Resources International

Sawlog prices rise as western mills up output to meet higher demand L

owners in the Pacific Northwest have good reasons to be more optimistic about the new year since there are signs that demand for timber will increase in 2013. Housing starts in the U.S. jumped to 894,000 units in October. This was 19% higher than in August, and as much as 42 percent more than in October of last year. For the year, housing starts were at their highest levels since 2008, and market analysts expect the next 12 months to be bumpy but still upward-trending. The improved housing market has been good news for many sawmills in North America, including the U.S. Northwest. Lumber production in 2012 was higher throughout the continent as compared to 2011, with an increase of 5.9% in the first nine months year-over-year in the U.S., and of 4.6 % in Canada over the same time period, according to WWPA. The U.S. Northwest is the region that has experienced the biggest increase in the production of lumber this year, with a 9.7% jump yearover-year. It is also interesting to note that for the first time in two years, sawmills in the western U.S. produced as much lumber as the mills in the U.S. South in September. Typically production levels are higher in the U.S. South than in the West. Sawmills in West benefited not only from improved domestic sales, but also from a continued healthy overseas market in Asia to which the western sawmills export between 10% OGGERS AND TIMBERLAND

LOG EXPORTS and imports to the U.S. Northwest.

SAWLOG PRICES in Western U.S.

The Merchant Magazine

(Sources: Customs data and WRI LLC)

(Source: North American Wood Fiber Review) n

January 2013

(Continued on page 22) Building-Products.com

Prices, Production Rise (Continued from page 20)

to 15% of their production. Although lumber exports were down about 30% in 2012 compared to 2011, the yearâ&#x20AC;&#x2122;s shipments to Asia were still expected to reach the second highest level in 15 years. The log market in western U.S. has seen quite a shift in the log flow during 2012, with logs going to the local sawmills rather than to the export docks. Log export volumes to Asia, with China being the major destina-

tion, fell about 22% in 2012. The reduced log demand from China has been good news for lumber producers in both Washington and Oregon, since it has taken off some upward price pressure that otherwise would likely have occurred had the log export market continued to stay at the 15-year record highs that were experienced in 2011. The log consumption at the local sawmills was up by almost 10% this year, and this higher demand for logs has been met by a combination of higher timber harvests, increased log

imports from Canada and a diversion of logs from Asian to domestic consumers. The net exports of logs have fallen from 8.7 million cubic meters in 2011 to an estimated 6.4 million cubic meters in 2012. (The approximate average conversion factor for West Coast logs is 1,000 bd. ft. for every 6 cubic meters.) Log imports from coastal British Columbia to sawmills in western Washington this year are predicted to reach their highest levels in four years. Timber harvests have also gone up in the Northwest and 2012 is likely to be the third straight year when harvest volumes have increased year-overyear, reaching the highest level seen since 2007. Sawlog prices have not yet gone up as a result of the improved lumber market. Prices in the U.S. Northwest, have been surprisingly flat for more than a year, with Douglas fir prices averaging close to $90 per cubic meter and hemlock log prices hovering around the mid-$80s, according to the North American Wood Fiber Review. However, in early November, there was increased upward pressure on sawlog prices in the West from Chinese log buyers that were more active in the market than earlier in the year. Although sawlog prices are currently at their highest levels in over five years, they are still way below the record highs during the 1990s. The Douglas fir log prices in November were just below the 15year average of $93 per cubic meter, while hemlock prices are well above the 15-year average of $68 per cubic meter. With the expected continued improvement in the U.S. lumber market and Chinese log buyers continuing their presence in the Northwest, it is likely that sawlog prices in the region will move upward in 2013 and that hemlock log prices may reach their highest levels in at least 15 years. â&#x20AC;&#x201C; Hakan Ekstrom is president of Wood Resources International LLC, Bothell, Wa., and editor of the Wood Resource Quarterly. WRI publishes two quarterly market reports tracking market developments, as well as sawlog, pulpwood, lumber and pellet prices in most key regions of the world. Reach him at info@wriltd.com.

The Merchant Magazine

January 2013

Building-Products.com

SPECIAL Focus Western Woods

Douglas Fir-Larch design values confirmed W

ESTERN WOOD Products Association has completed testing of Douglas Fir-Larch lumber in cooperation with other western agencies. Analysis of the 2012 test data indicates higher (+5.5%) bending strength, (+5.0%) tensile strength, and (+8.1%) stiffness properties than those established in the 1980s’ North American in-grade lumber testing program. The data has been submitted to the USDA Forest Products Laboratory for review. The analysis will be completed prior to consideration of the test report by the board of review of the American Lumber Standard Committee for confirmation at its January meeting. The comparison to the properties established in the original in-grade testing program indicates no needed change to the published design values for Douglas Fir-Larch lumber. The monitoring program affirms current uses, building code recognition, and recognized span data for the species group will remain the same. Had the data indicated a shift in properties, the

DOUGLAS FIR 2x4 lumber underwent bending tests at WWPA’s testing facility to ensure no changes were required to published design values.

findings would have to be reviewed by the cooperating agencies’ memberships and appropriate actions taken. The coordinating western lumber agencies—including Pacific Lumber Inspection Bureau, Redwood Inspection Service, Timber Products Inspection, West Coast Lumber Inspection Bureau, and WWPA—have

Malheur

Lumber Co. QUALITY PONDEROSA PINE Douglas Fir, Larch & White Fir Products Contact Art Andrews (541) 575-1148 Fax 541-575-2512 Email: art.andrews@centurytel.net

The Merchant Magazine

January 2013

been working together since early 2011 on the testing program to monitor western lumber design values. This has resulted in the joint effort of these agencies on the sampling and testing of western lumber. The published lumber design values are based on the in-grade lumber testing program. The testing plan was approved by the American Lumber Standard Committee board of review in 2011. The plan required destructive testing of 360 pieces in bending and 360 pieces in tension of Douglas FirLarch No. 2 2x4 lumber. Professor Robert Fountain of Portland State University provided statistical support for the testing program. A total of 36 representative mills were selected for lumber sample collection from the Douglas fir and western larch production region. The test samples were representative of the lumber volume destined for the marketplace. Following Douglas Fir-Larch, other western species including SprucePine-Fir (South) and Hem-Fir will be sampled and tested. The testing of western species is conducted periodically to monitor for changes, to allow for timely actions to be taken, if needed, to support lumber products. Building-Products.com

What’s in a name? A promise. “I’ll give you three reasons why we buy CollinsWood for our pattern and fascia stock. One: they are the absolute leaders in FSC®-certified softwood. Period. Two: there is a sense of loyalty, of confidence. They know us. We know them. We trust each other. Finally, our businesses are in close proximity which minimizes our carbon footprint. All in all, that’s why we choose FSC -certified Collins Softwood.” ®

Chris Richter, Western Woods, Chico, CA

SPECIFY Ponderosa Pine Sugar Pine Lodgepole Pine White Fir Douglas Fir Incense Cedar Lakeview Sawmill FSC®-C020582

Collins Lakeview Forest FSC®-C010874

Chester Sawmill FSC®-C002971

Collins Almanor Forest FSC®-C015354

Information and Sales: Josh Dean

800.329.1219 ext 2202 jdean@collinsco.com

Aly Kingsley 800.329.1219 ext 2220 akingsley@collinsco.com www.fsc.org

CollinsWood.com

SPECIAL Focus Western Woods

New California Prop. 65 wood warnings for 2013 C

P ROP . 65 consumer warnings affect anyone doing business in the state, from product labeling to posting warning signage at the point of display or point of sale. Since 2010, wood product manufacturers, vendors and retailers have been required to warn consumers of the potential health hazard of wood dust. Industry compliance efforts, which have focused on warning signage and education, have proven effective with no wood dust litigation reported. ALIFORNIA

In September 2012, warning requirements were extended to wood products containing titanium dioxide, which can be associated with dust from wood products and is known to the state of California to cause cancer. New for 2013 is the addition of methanol, which naturally occurs in the biodegradation of wood products. Warning labels and signage must reflect the addition of methanol no later than March 16, when the consumer warning becomes mandatory under California law.

Specialized Lumber Remanufacturer & Sawmill with emphasis on Western Cedars Multiple Automated Prefinish Lines.

Standard Patterns and Custom Patterns. Manufactured in the USA

Unity Forest Products Yuba City, CA •

800-248-4940 www.unityforest.com

“A Partnership that Builds Success” 26

The Merchant Magazine

January 2013

While industry groups are attempting to address wood methanol emissions in engineered wood products, there has not been sufficient information developed to support exclusion of methanol before the required compliance date. Lumber products have not been tested at this writing. The American Wood Council will fund the future testing for lumber products in cooperation with western lumber manufacturers and the Composite Panel Association. Western Wood Products Association is working with the California attorney general’s office to revise the 2013 warning language that will address wood methanol. Methanol was listed as a chemical known to cause reproductive harm under Proposition 65, effective March 16, 2012. Methanol, sometimes called “wood alcohol,” occurs naturally at low levels in wood, fruits, vegetables and many common foods. Methanol’s main use is in the production of chemicals. The California Office of Environmental Health Hazard Assessment has proposed two “maximum allowable dose levels” that identify levels of exposure to methanol that require warnings and prohibit discharges to sources of drinking water. The proposed levels are 47,000 micrograms per day for inhalation and 23,000 micrograms for ingestion of methanol. In August 2012, WWPA revised the Prop. 65 wood dust hazard warning to include any (future) substance, including titanium dioxide, which is associated with dust from wood products and known to the State of California to cause cancer. Titanium dioxide is a chemical that is used in edge and end sealers in engineered wood and lumber products, wood stencil paints, and inks as a color brightener. Not all ink, paint and sealer formulations used on wood prodBuilding-Products.com

ucts contain TiO2, and the presence of the chemical varies across individual product lines by manufacturers. A supplemental mailing to all WWPA subscriber customers who had confirmed their requirement to warn downstream customers and all non respondent customers was completed to meet a September 2, 2012, deadline for warning consumers. California Prop. 65, the Safe Drinking Water & Toxic Enforcement Act of 1986, requires wood products manufacturers to inform their downstream customers about the potential hazards of wood dust and other listed chemicals associated with wood products. Since affixing labels to wood products presents unique challenges, the majority of manufacturers issue a warning letter and/or signage. It should be noted, Prop. 65 does not require product warning labels. How manufacturers comply with Prop. 65 warning requirements may vary by company. Regulators advise that warning materials should be sent annually to customers and each customer should acknowledge the warning has been received. Wood dust warning materials must ultimately be posted at any California retail location where a man-

ufacturer’s product may be sold. In 2010, WWPA established the industry’s largest Prop. 65 customer notification service for any manufacturer or distributor who wanted to take advantage of a consolidated warning to customers. The WWPA service follows the office of the attorney general of California’s warning guidelines. The first signage and warning materials were developed, in consultation with the Western Lumber & Building Materials Association, in meetings held with regulatory and enforcement officials. The 2013 wood dust warnings, issued through the service, are part of the required customer warnings that are sent the first of each year. Prop. 65 is a “right to know” regulation, which applies to the average retail consumer and is separate from occupational setting requirements enforced by OSHA and other government agencies. Each year, wood product distributors and others that sell to California customers are informed of their duty, under law, to inform their downstream customers about the potential hazards of wood dust. The warning requirement applies to any business employing ten or more employees that manufactures, pro-

duces, sells, distributes, or otherwise transfers a wood product into the stream of commerce in California. Companies, which are often not aware warning materials are sent annually by manufacturers to customers and recipients, should review the materials to insure their current warning signage is in compliance with the regulations for all listed chemicals. According to California Health & Safety Code Section 25249.6, no person in the course of doing business shall knowingly and intentionally expose an individual to wood dust or listed chemicals associated with wood products without first providing a clear and reasonable warning. Representatives of the California attorney general’s office have indicated that, in their view, annual downstream customer warnings satisfy the continuous warning requirements of the statute, when coupled with appropriate consumer signage at the retail level. The WWPA customer notification program and corresponding warning requirements continue to develop to accommodate newly listed chemicals associated with wood products and to better serve subscribing manufacturers and their customers.

Quality Lumber Sustainable Forests At Bennett Lumber, we take pride in producing quality lumber products and managing sustainable forests for the next generation.

208-875-1321 www.blpi.com Jim Jim Vandegrift Vandegrift Sales Sales Manager Manager

Building-Products.com

January 2013

The Merchant Magazine

SPECIAL Focus Western Woods By Craig Larsen, Softwood Export Council

International markets continue calling on western softwoods T

HE INTERNATIONAL marketplace for U.S.-produced softwood lumber continues to be a small but steady destination for western softwood species, especially in the Pacific Rim countries. The market took a huge jump in 2010 and 2011 with the addition of China as a major buyer of U.S. softwoods. Exports for 2010 finished 51% ahead of 2009, at more than $843 million and 1.3 billion bd. ft. Softwood shipments for 2011 took another huge jump with a $1.32 billion export value with more than 1.63 billion bd. ft. shipped overseas. China entered the market in a big way, pushing it to the #1 spot with $245 million in value and 414 million bd. ft. Japan continued to improve, with $154 million in value and 173 million bd. ft. received in 2011. Two other $100 million markets were Mexico and Canada, including re-exports overseas. International markets cooled in fourth quarter 2011 and were slow to start up again in 2012. Exports have picked up during this second half of 2012 and are only down 10% from 2011 and above 2010. Estimated value for 2012 should be just under $1.0 billion in value and 1.25 billion in board footage. This year, China dropped way back from its import levels of 2011, and may end up back into the #4 position, behind the steadily growing markets of Canada, Mexico and Japan. Regional markets estimates in 2012 for U.S. softwoods include the Caribbean at $124 million, Southeast Asia at $45 million, and the European Union at $25 million. South Asia, including India and Pakistan, and the South Pacific, including Australia and the French Pacific Islands, combine for another $36 million in exports. Central and South America combine for over $5 million in shipments. Western species continue to have the major share of the international markets. Douglas fir has climbed from $58 million in 2005 to $283 million (30% of all softwood export) in 2011 and should drop only a little to $265 million in 2012. Hemlock has climbed from $11 mil-

The Merchant Magazine

January 2013

lion to $161 million in 2011, but dropped in 2012 to $79 million, mostly from China. Ponderosa pine maintained a steady market at about $32 million in 2011, but jumped to $40 million in 2012. Southern pine shipments reached $175 million in 2011, but dropped to $144 million in 2012.

Markets In the worldwide lumber market, U.S. softwood producers are still small suppliers in international softwood markets. Europe, Canada, Chile, New Zealand, and Russia are the major exporting regions or countries for softwood lumber products. International marketsâ&#x20AC;&#x2122; requirements and product uses vary widely by species, size, grade requirements, and end use of the materials. Traditional U.S. structural species, such as Douglas fir and hemlock, are found in many nonstructural products. Lower grades of all species, of limited value in structural applications, find a home in crating, pallets and packaging. They are used in many remanufacturing and gluing facilities, in parts of the world with much lower labor rates, for furniture and millwork components. Wood frame residential construction is mostly limited to North America, Japan, and parts of Oceana. Even in those markets, North American framing system using 38mm x 89mm (2x4) structural members is limited to the U.S., Canada, and a small segment of Japan. Japan is the second largest wood frame construction market in the world. But of Japanâ&#x20AC;&#x2122;s nearly 450,000 wood frame units in 2012, only 98,000 were 2x4 based. The vast majority were traditional Japanese metric post and beam timber construction using metric sizes. Structural framing sizes in Australia and New Zealand use 35mm and 45mm by 90mm and 100mm sizes. U.S. softwood producers successful in these markets are providing metric sized lumber to compete with other imported products mainly from Europe and Canada. Building-Products.com

International Uses Most of the U.S. softwood exported is for non-structural uses. Interior applications, such a doors, windows, frames, mouldings, flooring, paneling, and other millwork, are a prime destination for pine and fir species. Furniture parts and glued panels are also a destination for softwood lumber. Western species, such as Douglas fir and hemlock in clear and other upper grades, are prized in Europe for window and door parts and frames. Ponderosa and other western pines are used in rustic furniture and for upholstery frames in Mexico, China and Vietnam. U.S. producers sell both metric and imperial sizes into these markets because much of the stock is ripped and resawn to provide “finished” metric sizes for local markets. A large portion of exported lower grades in softwoods are used in concrete forming for forms, wailers and support posts. Much of the worldwide structural construction is based on the use of concrete, so there are a large demand for formwork materials at all levels. Some world markets require structurally graded materials, some cultures use the material repeatedly, but some see wood as a single-use material and aim for a cost-competitive disposable supply, and use the remains for fuel or local d-i-y projects. Western softwoods have found distinct foreign markets based on species and size. For strength, long lengths, and large sections of solid lumber, or for tight close grain materials, the U.S. West is the place to go. The Pacific Rim is the leading market for western species. China was the top destination in 2011, but fell behind Japan in 2012. China has grown by a factor of 10. In 2005, exports to China were $23 million (33 million bd. ft.), rising to $245 million in 2011. In 2012, however, China decreased 50% to $125 million. Hemlock was the leading U.S. species imported in 2011, at $105 million, and took the biggest hit in 2012, down to $29 million. Douglas fir was $37 million in 2011, but fell to $24 million in 2012. Japan is the major export market for U.S.-produced Douglas fir, importing $137 million,which represented 50% of all Doug fir exported in 2011. The vast majority of the product is in metric sizes and lengths for post and beam construction. Western hemlock and hem-fir were second at $4 million. Other notable species include redwood, western red and yellow cedars, Building-Products.com

and ponderosa pine. For 2012, exports were on track to increase by more than 8% over 2011. Mexico was the third largest market for western species in 2012. A market value of $126 million was sent to Mexico in 2011, and 2012 should top out at $144 million. Mexico is a low-grade pine market, with ponderosa pine the leading import, behind “other softwoods.” Uses include furniture components, concrete forming, pallets, crating and millwork. Doug fir is also used for some structural applications along the border. The major competition is radiata pine from Chile. The Softwood Export Council is the U.S. western softwood link to international markets and marketing

activities. The SEC and its member organizations, grading agencies, trade associations, and state agencies provide marketing programs, including trade shows, trade missions, market sourcing, design and usage information in native languages. A special SEC program helps put U.S. companies in direct contact with foreign buyers by helping with travel expenses to shows and on trade missions. Whether you’re a producer, wholesaler or retailer, you probably have a link to the SEC and its activities through an SEC member. – Craig Larsen is president of the Softwood Export Council, Portland, Or. Reach him at (503) 620-5946 or clarsen@softwood.org.

January 2013

The Merchant Magazine

SPECIAL Focus Western Woods

Portland plays host to western lumber industry’s annual conference T

industry’s largest gathering of leading wood products companies will return to Portland, Or., this spring with the Western Wood Products Association’s 2013 annual meeting. The North American Wholesale Lumber Association will also hold its yearly Pacific Northwest regional meeting on March 5 in conjunction with the WWPA event and is planning activities to complement the gathering. The conference will be held March 3-5 at the Embassy Suites Hotel in downtown Portland. The meeting draws the western lumber industry’s top professionals, ranging from senior-level executives to sales managers and production personnel. As an added draw, member companies will be HE WESTERN LUMBER

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 State-of-the-Art Hewmill & Headrig Mill Contact Sheldon Howell

Alicia Beltran

(509) 874-1163

(509) 874-1168

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

www.yakama-forest.com 30

The Merchant Magazine

January 2013

inviting key customers to the meeting. You can review more information about the meeting on the WWPA website at www.wwpa.org. The annual meeting will kick off with the industry welcome reception on Sunday March 3. Monday morning sessions get underway with the industry forecast breakfast featuring the association’s outlook for 2013 lumber markets, before getting down to business with WWPA standing committee meetings, followed by the industry luncheon. The afternoon features a speaker session with guest speakers covering a range of topics important to western lumber producers and their customers. The day will close with the chairman’s reception, which offers many opportunities to network with other industry professionals. Registration is $300 for WWPA members, $350 for associate members, and $425 for all others. Fees for registrations received after February 15 increase by $50. For those who would like to just network with industry folks, WWPA is offering a special registration for the welcome and chairman’s receptions only on Sunday and Monday nights for $100 each. Registration and hotel reservations for the meeting can now be completed online, using links on www.wwpa.org. Last year’s room block quickly sold out. For 2013, the association has secured a larger block of rooms at the Embassy Suites. The reservation deadline to take advantage of the special WWPA rate is February 3. Those needing overnight accommodations are urged to make hotel reservations early. Building-Products.com

Swanson Upgrades Planer Swanson Group, Glendale, Or., is updating its planer mill to improve throughput, recovery, and the value and grade distribution of its products. Supplied by USNR, the 20-ft. line will receive a full-featured THG system, revolver lug loader, multi-track fence, WinTally sorter management system, True-Read XL grade mark reader, grade projector system, and associated trim line lumber transfers. The line’s controls system will also be updated to the ControlLogix platform.

the mill, so has begun selling off the equipment.

Siding Giant Buying Kleer Tapco International Corp., a subsidiary of Headwaters Inc., South Jordan, Ut., has agreed to acquire the assets of PVC trim manufacturer Kleer Lumber, Westfield, Ma. Headwaters’ brands include Builders Edge trim, Foundry siding, Mid-America siding components, Tapco siding tools, and El Dorado manufactured stone. Headwaters aims to add Kleer’s products to its nationwide distribution

network. Kleer’s current distribution is concentrated on independent lumberyards and home improvement centers in the Northeast and mid-Atlantic regions. The deal was expected to close by Dec. 31.

Clarification At Capital Lumber’s recently expanded DC in Tacoma, Wa. (Dec., p. 20), Mark McClain will oversee EWP activity. Matt Yates remains branch manager.

States Industries Buys Component Firm Hardwood plywood manufacturer States Industries, Eugene, Or., has acquired Drawer Box Specialties, Orange, Ca. Founded in 1987, DBS produces drawer boxes, drawer storage systems, shelving units, and specialty accessories. States’ president Mike Taylor called the addition of DBS a strategic extension of its existing value-added components business. “We are focused on continued growth by integrating toward the end-user with an innovative mix of products and solutions,” said Taylor. “DBS has a great brand franchise that we think will be a perfect complement to our business moving forward.” DBS will retain most of its management and its existing sales team in Southern California. DBS president Cathy Blankenship will continue to manage the business unit for States Industries.

PPG Buying AkzoNobel U.S. PPG Industries, Pittsburgh, Pa., agreed to pay $1.05 billion for AkzoNobel’s North American architectural coatings business. The deal includes its North American architectural coatings production and distribution facilities, paint stores, and product lines, including Glidden, Flood, Liquid Nails, SICO, and CIL.

Weyco Sawmill Won’t Reopen Weyerhaeuser’s sawmill in Dallas, Or.—shuttered since 2009—will not restart under its new owner. After paying $1.4 million at a Sept-ember auction for the 66-acre site, Northwest Demolition & Dismantling, Tigard, Or., was unable to find anyone interested in running Building-Products.com

January 2013

The Merchant Magazine

MOVERS & Shakers Steve Schmitt has retired from Stimson Lumber, Portland, Or. Tim Atkinson succeeds him as v.p.-sales & marketing. Charlie Brittain, sales mgr., Trinity River Lumber Co., Weaverville, Ca., has retired after 27 years with the company. Chris Freeman, ex-Ganahl Lumber, has been named director of West Coast sales for Windsor Mill, Cotati, Ca. Matt Ensworth, ex-Unity Forest Products, has joined RFP Lumber Co., Oroville, Ca. Sean Oâ&#x20AC;&#x2122;Bannon, ex-Fontana Wood Products, has joined Universal Forest Products, Riverside, Ca., as an account mgr.

The Merchant Magazine

Aaron Sulzer has been named sales mgr. for the structural lumber group at Sierra Pacific Industries, Redding, Ca., succeeding the retiring Bob Shepherd. Jeff Remington has been appointed v.p. of operations for the Swanson Group, Glendale, Or. Heath Grafton is now traffic mgr. Eric Lawrence, Boise Cascade, Boise, Id., has been promoted to general mgr. of the Filler King Beams division, Homedale, Id. Jason Anderson is a new commodities trader for American International Forest Products, Beaverton, Or. Chip Estey, ex-Idaho Pacific Lumber, has joined Intermountain-

January 2013

Orient, Boise, Id. Scott Pennington is new to sales from Spokane, Wa. Steve Strojan, Shamrock Building Materials, Portland, Or., has retired after 46 years in the industry. Greg Reed, Fiberon, was promoted to regional sales mgr. for Montana and western Canada and will relocate to the Missoula, Mt., area. Geoff Watts, ex-Weyerhaeuser, is new to EWP sales and design at Capital Lumber/Cascade Capital, Tacoma, Wa. Dale Miles, ex-Viking Door & Window, has joined the sales team at Orepac Building Products, Sacramento, Ca. Tom Sabo, ex-ProBuild, has been named director of national accounts for L.J. Smith Stair Systems, Chandler, Az.

Building-Products.com

Nate Bond, ex-ProBuild, has been named v.p. at Pacific Crest Building Supply, Ridgefield, Wa. Clark Adams, ex-Chase Lumber, is new to outside sales at ShingleCorp LLC, Littleton, Co. Cheryl Cannedy is new to Rugby Architectural Building Products, as specification specialist and territory sales for the Albuquerque, N.M., area. Penny Arensdorf is new to Johns Manville, Denver, Co., as contractor market mgr. Ray Pettengell is now in sales at Pioneer Millworks, McMinnville, Or., serving southern Oregon, California and Texas. Ted Brackett has joined ABC Supply, Santa Cruz, Ca., handling outside sales of specialty building products. Kim Sosa is a new customer service specialist at Mendocino Forest Products, Windsor, Ca. Rory Rodriguez has been named senior account mgr. at White Cap Construction Supply, Dublin, Ca. Douglas Morin, ex-Champion Windows, is now director of sales for Superior Windows, Ontario, Ca. Jake White is a new Eugene, Or., regional sales rep for James Hardie Building Products. Juli Waterman, ex-Cascade Windows, is now with Simonton Windows, as district sales mgr. for Oregon. Steven Ekstein, Steve Rhone, Steven Rustja, and Rob Hruby have been made partners in Western Forest Products, Missis-sauga, Ont. Jamey Dunse is new to western red cedar sales at Western Forest Products, Vancouver, B.C. Steve Cloutier has been promoted to v.p. of sales & operations for the Gold Band Shake & Shingle division of the Clarke Group, Mission, B.C. Jim Webb has joined the sales force at Atrium Windows & Doors, Denver, Co. Michelle Kam-Biron, ex-WoodWorks, is now director of education for the American Wood Council. Lori Koch is now project engineer; Bryan Knight, web development coordinator, and Marcie Weeber, part-time program assistant. Ella Vader has a new second-story office at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus. Building-Products.com

January 2013

The Merchant Magazine

DOUGLAS FIR produced by two of Sierra Pacific’s mills was used to build the inauguration platform in Washington, D.C. Photo courtesy of Sierra Pacific Industries.

Wood Products Attend Inauguration When President Obama takes the oath of office on Jan. 21, he will be standing on a platform made of Douglas fir manufactured by Sierra Pacific Industries’ sawmills in Aberdeen and Burlington, Wa. “SPI is the largest producer of these types of long/wide boards in the U.S., which explains why the supplier back East continues to make purchases of our Washington lumber—quality counts,” said Sheri Nelson, SPI spokesperson. Sherwood is one of SPI’s largest distributors. This is the fourth consecutive presidential inauguration in which the platform was built using Sierra Pacific lumber. About 200,000 bd. ft. was used, enough to build about 13 average-size homes. Much of it was 2x4s, but wider 2x12 and 2x16 planks—up to 26 ft. long—were also used. On the big day, the more than 10,000-sq. ft. platform will hold more than 1,600 guests.

IN Memoriam Michael St. John, 66, vice president of sales and marketing and a director for Pacific Woodtech Corp., Burlington, Wa., died of a heart attack Nov. 29 A former Navy Seal and graduate of Colorado State University, he joined Trus Joist, Boise, Id., in 1976 and, as v.p. of sales, helped pioneer the EWP industry. He became v.p. of sales and marketing as the company merged with MacMillan Bloedel’s EWP operation into Trus Joist MacMillan. He helped launch Pacific Woodtech in 1999. He was a board trustee of APA, chairman of the APA marketing advisory committee, and a member of the APA EWS I-joist/SCL management committee. Ralph Cardwell, 85, longtime Southern California lumberman, died Dec. 4. After serving in the first armored division of the U.S. Army in Germany during World War II, he graduated from University of California-Berkeley and spent seven months working at a sawmill in Medford, Or., to learn the industry. He then launched a 60+ year career in sales and buying, working for Dant & Russell, Los Angeles; Oregon Pacific;

The Merchant Magazine

January 2013

Building-Products.com

operating his own company, Cardwell Forest Products, Fullerton, from 1976 to 1982; United Wholesale Lumber, Montebello; BW Randall Wholesale Lumber, Huntington Beach, and Far West Fir Sales, Huntington Beach, staying on after Far West was acquired by Universal Forest Products. After retiring from UFPI, Riverside, in 2001, he began selling for his son’s business, U.S. Lumber, Yorba Linda. John Wesley Kennedy, 86, cofounder of Kennedy-Johnsen Lumber, Snohomish, Wa., and KMJ International, Edmonds, Wa., died Dec. 16. After serving in the Navy during World War II, he joined his father’s wholesale lumber business in Seattle, Wa., beginning his 65+ year lumber career. He formed Kennedy-Johnsen with Carsten Johnsen in 1955 and exporter KMJ International in 1972. After selling the companies, he continued working for KMJ until his death. Sidney J. “Sid” Chattler, 85, retired president of Exotic Woods, Carson, Ca., died Dec. 3 in Laguna Woods, Ca. He started his career in 1960 and retired in 1993. David Norman Bodtker, 76, retired Oregon lumber wholesaler, died Nov. 16. He broke into the industry in 1958, retiring in 2000 after working for Alpine Veneer, Western International Forest Products, and Shamrock Building Materials. Virgil Robert “Bob” Brown, 84, retired operations manager for Warm Springs Forest Products, Warm Springs, Or., died Nov. 19 in Post Falls, Id. After his discharge from the U.S. Army in 1947, he began his 45-year career with Warm Springs, including 20+ years as head sawyer. Richard Glen “Dick” Haynes, 89, retired Ace Hardware dealer, died Dec. 20 in Baker City, Or. After graduating from Oregon State University, he began selling seed and farm supplies in 1955 and two years later formed Farmterials Inc., operating the business until 1989. It also acquired Fortner Supply and Oregon Wood & Coal. He served for several years on Ace Hardware Corp.’s board of directors. Building-Products.com

January 2013

The Merchant Magazine

NEW Products

Pro Wall Texture Homax Pro Grade Wall Texture combines the control of a hopper gun with the convenience of an aerosol. The self-priming, low odor spray can be controlled with a pressure-adjustment toggle and pattern control dial, to match orange-peel wall patterns. Each can covers up to 125 sq. ft., while a slight tint improves visibility during application.

High-Speed Grinding

n HOMAXGROUP.COM

The GE950G-Plus grinder by Metabo has a spindle lock and wide-speed range, to handle a wide variety of construction applications. The tool has a LongLife motor, 950 watts of power, a rated load of 7,200 rpm, and 27” lbs. of torque. Other features are thermal overload protection, electronic speed stabilization, and an electronic soft start to extend tool life.

(800) 729-9029

n METABOUSA.COM (800) 638-2264

Start Those Shingles ShingleStarter waterproofing membrane by MFM Building Products is now available in tri-lingual packing: English, Spanish, and French. The product eliminates the need to cut shingle tabs, bonds to the roofing substrate, and has a sealing strip to prevent wind uplift at the roof edge. It also selfseals around nails, fasteners, and punctures, to prevent water penetration. Packaged eight to a carton, each roll measures 7.2” wide by 33.5” long.

ProVia Heritage entry doors are constructed of fiberglass with hardwood stiles and square-edge construction. High-definition embossed panels look like real wood, but resist denting, splitting, cracking, and warping.

n MFMBP.COM

n PROVIAPRODUCTS.COM (877) 389-0835

(800) 882-7663

The Merchant Magazine

Doors With Heritage

January 2013

Building-Products.com

Handy Ladders

Hidden Deck Fastener

Wernerâ&#x20AC;&#x2122;s three-piece, fiberglass extension ladders work in tight spaces. In the closed position, the three-piece design makes them 20-25% shorter than standard two-piece extension ladders. Their compact design also makes them easier to transport, especially for urban contractors who need to secure equipment and materials inside their vehicles.

Through a partnership with EBTY, Deceuninck North America has developed a hidden fastener biscuit for its Clubhouse PVC decking. With two packaging options and a longer screw for enhanced installation, the biscuit spaces the deck boards and holds them down. It will not rust, shrink, crack, or soften in high temperatures, and drainage problems are eliminated because boards are evenly spaced.

nWERNERCO.COM

n DECEUNINCK-AMERICAS.COM

(888) 523-3371

Building-Products.com

(877) 563-4251

January 2013

The Merchant Magazine

Deck Rail-to-Framing Connector The DTT2Z connector from Simpson Strong-Tie attaches deck-railing posts to deck framing. Protected by a Zmax coating, the fastener ties posts into deck joistsâ&#x20AC;&#x201D;rather than the rim joist aloneâ&#x20AC;&#x201D;to form a stronger connection. The device is also load-rated as a holddown for light-duty shearwalls and braced wall-panel uses.

n STRONGTIE.COM (800) 999-5099

Window Geometry Geometrics Windows from Precise Plastics come in four different shapes that can be installed as stand-alone picture windows or mulled together to create a variety of window shapes and styles. An interlocking nailing flange locates each window in the correct position when mulling. Both interior and exterior trim frames have locating ribs for a professional mitered look.

n GEOMETRICSWINDOWS.COM (855) 809-7179

Flooring Adhesive DriTac 5000 is a hard-set, pressure-sensitive adhesive for installing vinyl tile and vinyl plank flooring. Available in 1- and 4-gallon plastic pails, the product can be used over moisture-free concrete, plywood, hardboard, terrazzo, steel, and well-bonded, wax-free floor coverings.

n DRITAC.COM

(800) 394-9310

The Merchant Magazine

January 2013

Building-Products.com

Cottage Windows Marvin’s Integrity Windows & Doors division produces cottage-style windows in all styles. Made of pultruded fiberglass, the windows have a 40/60 sash split and a 60/40 reverse split. Equal sash configurations also are offered in a range of designs.

Distributed by

• (541) 535-3465 • www.normandist.com Superior Service, Products & Support

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

n INTEGRITYWINDOWS.COM (888) 419-0076

Devilish Blade Diablo’s Demo Demon blade delivers durability in the most extreme construction situations: demolition, renovation, and remodeling. Each 7-1/4” x 24 tooth blade is laser-cut of high-strength steel, then protected with a permanent non-stick coating to resist heat, rust, gumming, and corrosion.

DOMESTIC SALES: Jerry Long, Michael Parrella, Janet Pimentel, Pete Ulloa, George Parden, Vince Galloway, Chris Hexberg, Matt Wright, Bert McKee, Joe McCarron. INTERNATIONAL SALES: Nestor Pimentel.

n DIABLOTOOLS.COM (800) 334-4107

Building-Products.com

January 2013

The Merchant Magazine

ASSOCIATION Update West Coast Lumber & Building Material Association will host a 2nd Growth meeting March 7 in Buena Park, Ca. North American Building Material Distribution Association elected Michael Darby, Capital Lumber, Phoenix, Az., as its new pres-

2ND GROWTH

Mountain States Lumber & Building Material Dealers Association presented its every-other-year Industry All Star Award to Max Guetz, Alpine Lumber, Denver, Co. MSLBMDA’s annual products expo is set for March 7-8 at the Denver Merchandise Mart, Denver, Co.

ident, succeeding Paul Vella, Atlantic Plywood, Woburn, Ma. New v.p. is Rick Turk, Metro Hardwoods; treasurer Robyn Pollina, Palmer-Donavin Manufacturing, and president-elect Don Schalk, C.H. Briggs Co. Distributor directors are Ken Hager, Amerhart; Ray Prozzillo, A&M Supply; Bill Sauter, OHARCO, and David Sullivan, Meyer Decorative Surfaces. Manufacturer directors are Mark Carlisle, M.L. Campbell; Jeff Muller, Panolam; Dan Pickett, Knape & Vogt Manufacturing; Greg Pray, Columbia Forest Products, and Chris Schlabach, VT Industries.

Photos by The Merchant Magazine

Western Wood Products Association hosts its annual meeting March 3-5 at Embassy Suites, Portland, Or. Highlights include an industry forecast breakfast, speakers forum, and chairman’s reception. Moulding & Millwork Producers Association will hold its 50th winter business meeting March 5-9 at Talking Stick Resort, Scottsdale, Az. North American Wholesale Lumber Association’s yearly Education Foundation career exploration workshop is set for March 10-15 at Mississippi State University, Starkville, Ms. March 10-13 is the annual University of Industrial Distribution at J.W. Marriott, Indianapolis, In.

WEST COAST Lumber & Building Material Association’s 2nd Growth group enjoyed its annual holiday party Dec. 6 in Brea, Ca. [1] Mike Caputo and incoming president Danny Sosa. [2] Kelsey Kilander, Adan Torres. [3] Tim

Hummel, Doug Willis. [4] Gerry Perez, Troy Huff, Shelly Nerchain, David Cruz, Mark Huff. [5] Jean Henning, Bert McKee, Charlene Valene. [6] Rex Klopfer, Bill Sullivan. (More photos on next page)

National Wooden Pallet & Container Association has hired Brent J. McClendon as its new president and c.e.o. McClendon, executive v.p. of the International Wood Products Association since 2003, replaces Bruce N. Scholnick, who died from complications of cancer in July.

THUNDERBOLT WOOD TREATING “WE TREAT WOOD RIGHT”…Quality Wood Treating Services Since 1977

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

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

The Merchant Magazine

January 2013

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

Building-Products.com

2ND GROWTH Photos by The Merchant Magazine

2ND GROWTH (continued) celebrated the holidays with a casino night and ugly western wear contest. [1] Jennifer Burford, Craig Larson. [2] Brad Schneider, Renee McMichael. [3] Jack Butler, Natalie & John Allen. [4] Joe Allotta, Mark Rommel. [5] Al Reed, Carl Henoch, Pete Meichtry. [6] Jason Rutledge, Allan Pantig. [7] Chris McDonough, Chris Huntington, Sean Cummings. [8] Grant Pearsall, Andy Flores, Jason Womack, Phillip Ho. [9] Javier Rodriguez, Walter Frederick. [10] Jay & Building-Products.com

Holly McArthur. [11] Russ Primrose, Betsy Bendix, Dan Kroker. [12] Rick Ponze, Tyrone Smith. [13] Dee Dee Graham, Tom Angel. [14] Seamus Oâ&#x20AC;&#x2122;Reilly, Karen Caputo. [15] Jorge & Margarita Vargas, Ed Aguilar. [16] John Pasqualetto, John Davis. [17] Steve Mitchell, Jason Croy. [18] Stephanie & Terry Rassmussen. [19] Nick Larr, Jackie Vega, Steve Wiseman. [20] Dan Lucero, Jake Nansel. [21] Larry Christensen, Luis Mendez. [22] David Tait, Rick Deen. January 2013

The Merchant Magazine

LA HARDWOOD HOLIDAY Photos by Stephen Ondich

LOS ANGELES Hardwood Lumberman’s Club presented a Founders Award to Walter Ralston, Cramer Lumber, Arcadia, during its holiday party Dec. 8 in Anaheim, Ca. Dan Bohannon, Bohannon Lumber, Long Beach, was named Member of the Year. [1] Randy & Marty Porter, Bill & Kathy Fitzgerald. [2] Bruce & Kathy Jauman, Lisa Rains, Mark Michie. [3] Todd & Wryn Anderson. [4] Alan & Dana Arbiso, Joyce & Walter Ralston. [5] Nathan & Lynn Osborne. [6] Sandra & Garrison Cox. [7] Steve & Heidi Ondich. [8] Tracey Gaither, Alana Fiala, Maria Lapin, Kit Rohm, Dan Bohannon, Charley Fiala.

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 949-8520231 or dkoenig@ building-products.com. For more info, call (949) 852-

HELP WANTED

1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.

WANTED TO BUY

WANTED: DOWNFALL & SECONDS Downfall, excess or salvage lumber, panels, roofing, etc., purchased for export. Contact CarlHanson103@aol.com, (619) 954-9955.

NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.

The Merchant Magazine

Latest Breaking Industry News Updated Daily building-products. com

January 2013

Got your own copy? Just $22 a year The

MERCHANT Magazine

Start your own subscription with our very next issue by calling Heather at (949) 852-1990

Building-Products.com

Top 10 Remodeling Trends Remodeling in 2013 will trend toward simpler living and low-maintenance design, but with accent marks of color and splash that don’t overpower, according to design-build firm Neil Kelly Co., Portland, Or.

10. Kitchen Cabinets A simple, contemporary look will be popular with homeowners looking to economize and eliminate clutter and fussy details that equate to high maintenance and complicated living. For those who don’t want to spring for new cabinetry, re-facing or refinishing offers more bang for the buck. 9. Countertops While granite isn’t going away and still has many die-hard fans, the new king of countertops will be quartz composite—the closest thing to no maintenance, bullet-proof countertop materials available today.

8. Hardwood Floors Pre-finished and engineered wood flooring will become more popular than the once gold standard of site-finished flooring. Pre-finished woods provide a hard, durable finish, are an installation time saver, and eliminate the sanding dust dilemma. Engineered wood floors are also compatible with under-floor heating systems—a big plus in cold climates. 7. Glass Backsplashes Glass mosaic tile is on the way out. Taking its place are glass/stone/tile mosaic composites that can add more texture and visual interest and that tie in more readily with stone or quartz countertops. Be on the lookout for back-painted, solid glass panel backsplashes in contemporary settings, which provide an ultra-clean, almost ethereal look to a polished, modern kitchen setting.

6. Stylishly Simple Sinks Goodbye, double-sinks. Hello, deep single-bowl sinks. With accessories such as fitted colanders and dish drains, deep single-bowls have all the benefits of a divided sink, plus the large size to fit a roasting pan or baking sheets into the sink all at once. Stainless is still popular, but durable quartz composites are a great value. 5. Color Palette Charcoal is the new black. This year will find this silky color everywhere as it blends the right amount of chocolate, gray and a touch of green. 4. Bathroom Stone Synonymous with luxury, Calacatta Building-Products.com

marble will find its way into both traditional and contemporary bathrooms. Calacatta is a rarer stone than Carrara marble, but is quarried in the same region. It is valued for a whiter background and bolder gray veins. 3. Texture & Sparkle Bedazzled may find its way into home design for those seeking a blend of classic textures and colors with pops of bold color and sparkle. Glossy glass tile backsplashes and sparkle on polished nickel fixtures trend in 2013. 2. Living in Your Home Longer/ Multi-Generational Living

Neil Kelly predicts a growing trend to help aging baby boomers safely “grow old” in their homes, for as long as possible. 1. Healthy Home, Healthy Living The biggest trend will be to create a healthy living environment, free of toxins and harsh chemicals. More homeowners are taking advantage of federal and state incentives to evaluate their home’s energy efficiency and overall performance. Upgrade trends include the use of low-VOC materials, testing combustion safety, and radon mitigation.

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

January 2013

The Merchant Magazine

Happy New Year fromâ&#x20AC;Ś

BUSINESS CONSULTANT 25 Years Serving the Industry

The

MERCHANT Magazine

The Merchant Magazine

January 2013

Building-Products.com

DATE Book

Willamette Valley Hoo-Hoo Club – Feb. 1, crab feed, Shadow Hills Country Club, Junction City, Or.; (541) 688-6675.

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

Tacoma-Olympia Hoo-Hoo Club – Feb. 5, crab feed, High Cedars Golf Course, Orting, Wa.; (253) 531-1834.

Black Bart Hoo-Hoo Club – Jan. 16, industry night, Broiler Steakhouse, Ukiah, Ca.; (707) 621-0485; blackbarthoohoo181.org.

National Roofing Contractors Assn. – Feb. 5-7, annual convention & expo, San Antonio, Tx.; (847) 299-9070; www.nrca.com.

Humboldt Hoo-Hoo Club – Jan. 17, crab feed, Elks Lodge, Eureka, Ca.; (707) 601-9128.

Los Angeles Hardwood Lumberman’s Club – Feb. 7, pool tournament, Danny K’s, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Western Pallet Association – Jan. 18-22, annual meeting, Rancho Mirage, Ca.; (360) 335-0208; www.westernpallet.org.

Northern Utah Home Show – Feb. 8-10, Davis Convention Center, Layton, Ut.; (888) 433-3976; www.acshomeshow.com.

Guardian Building Products – Jan. 20-22, market, Paris Hotel, Las Vegas, Nv.; (800) 569-4262; www.guardianbp.com.

National Wooden Pallet & Container Association – Feb. 16-19, leadership conference & expo, Loews Portofino Bay Hotel, Orlando, Fl.; (703) 519-4720; www.pallettcentral.com.

International Builders Show – Jan. 22-24, Las Vegas Convention Center, Las Vegas, Nv.; (800) 368-5242; buildersshow.com. Do It Best Corp. – Jan. 23-24, winter conference, Arizona Biltmore, Phoenix, Az.; (260) 748-5300; www.doitbestcorp. Renovation & Remodeling Show – Jan. 25-27 Portland Memorial Coliseum, Portland, Or.; (800) 374-6463; homeshowcenter.com. National Assn. of Wholesaler-Distributors – Jan. 29-31, executive summit, Fairmont, Washington, D.C.; (202) 872-0885; naw.org. Surfaces – Jan. 29-31, Las Vegas, Nv.; (972) 536-6358; surfaces.com. California Forestry Assn. – Jan. 29-Feb. 1, annual meeting, Silverado Resort, Napa, Ca.; (916) 444-6592; foresthealth.org. Western Building Material Association – Jan. 30-Feb. 1, annual convention, Doubletree Lloyd Center, Portland, Or.; (888) 5519262; www.wbma.org.

Southern California Hoo-Hoo Club – Feb. 20, meeting, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; hoohoo117.org. National Frame Building Association – Feb. 20-22, frame building expo, Memphis, Tn.; (800) 557-6957; www.nfba.org. Ace Hardware Corp. – Feb. 21-23, spring show, New Orleans, La.; (630) 990-7662; www.acehardware.com. Oregon Logging Conference – Feb. 21-23, Lane County Fairgrounds, Eugene, Or.; (800) 595-9191; www.oregonloggingconference.com. Orgill Inc. – Feb. 21-23, dealer market, Orange County Convention Center, Orlando, Fl.; (800) 347-2860; www.orgill.com. Colorado Springs Home & Landscape Expo – Feb. 22-24, NorrisPenrose Event Center, Colorado Springs, Co.; (800) 374-6463; www.homeshowcenter.com.

The business card ads on this and the previous page in The Merchant and Building Products Digest raised $1,900 for the Freedom Writers Foundation, which aids the education of at-risk children.

Happy New Year from…

Building-Products.com

January 2013

The Merchant Magazine

ADVERTISERS Index

IDEA File

For more info on advertisers, call directly or visit their websites.

Awash in Quirky Diversity

Advantage Trim & Lumber [www.advantagelumber.com]..........36

Although Wal-Mart has announced plans to move in across the street, Intown Ace Hardware, Decatur, Ga., has already fought off Home Depot, Builders Square, and other big boxes competition by stressing eclectic products and promotions that appeal to the funky tastes of its hometown. There are Adirondack chairs in sherbet colors, Decatur-logoed license plates and apparel, art supplies, toys, kitchen gadgets, eco-friendly products, and fun events like a staff Pirate Day. An old-fashioned cart near the front register serves up fresh popcorn. “I never thought I would have a hardware store with two lines of perfume and seven lines of organic candles,” noted co-owner Tony Powers. “Costume jewelry is also hot. I never thought this would be who we are.” The store is a big sponsor of local youth teams, school auctions, and community fundraisers—stocking a year-round supply of Girl Scout cookies. The key is adapting. Quickly. Since Home Depot arrived, Intown has stopped selling lawn mowers and standard barbecue grills. Instead, the move opened up floor space for building materials for use in chicken coops and school gardens. “We’re going after unique,” Powers said. “Topiaries and specimen plants—we just sold a couple of $400 trees. More organic and more local products. Wal-Mart can’t adapt to that quickly or at all.” Its co-op, Ace Hardware, is also taking notice, recently recognizing Intown as one of six “Coolest Hardware Stores” in the U.S., describing it as “smalltown America meets modern in the heart of Atlanta.”

Bear Forest Products [www.bearfp.com].....................................13

EMPLOYEES festooned in buccaneer garb line up to dance at Intown Ace Hardware’s Pirate Day.

Siskiyou Forest Products [siskiyouforestproducts.com]...........33

Bennett Lumber Products [www.blpi.com]..................................17 Boral [www.boraltruexterior.com] ..................................................3 Cabot [www.cabotfactoryfinish.com]..................................Cover II California Timberline [www.caltimberline.com] ............................5 Capital [www.capital-lumber.com]................................................36 Collins Companies [www.collinswood.com] ...............................29 Columbia Vista Corp. [www.columbiavista.com] ........................25 Deckwise [www.deckwise.com] ....................................................34 Distribution Management Systems Inc. [www.dmsi.com]..........32 Fontana Wholesale Lumber [fontanawholesalelumber.com].....46 Hoover Treated Wood Products [www.frtw.com]........................37 Huff Lumber Co. .............................................................................43 Idaho Forest Group [www.idahoforestgroup.com] .....................23 Intefor [www.interfor.com].............................................................31 Jaaco Corp. [www.jaaco.com].......................................................19 Keller Lumber Co............................................................................38 LP Building Products [www.lpcorp.com].......................................7 Malheur Lumber Co........................................................................24 Norman Distribution Inc. [www.normandist.com].......................39 Parr Lumber ....................................................................................39 Potlatch [www.potlatchcorp.com] ................................................22 Redwood Empire [www.redwoodemp.com] ......................Cover III Roseburg Forest Products [www.rfpco.com]....................Cover IV Simpson Strong-Tie [www.strongtie.com]...........................Cover I Skyreach L&S Extrusions Corp. [www.skyreachls.com]..............8 Snider Industries [www.sniderindustries.com] .............................4 Swanson Group Sales Co. [www.swansongroupinc.com].........21 Taiga Building Products Inc. .........................................................15 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....40 Unity Forest Products [www.unityforest.com] ............................26 Utah Wood Preserving Co. ............................................................38 Woodtone [www.woodtone.com]..................................................17 Yakama Forest Products [www.yakama-forest.com]..................30

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

January 2013

Building-Products.com