JANUARY 2017
The
MERCHANT
Magazine
THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922
2017: THE YEAR AHEAD • WESTERN WOOD PRODUCTS • IMPORT DUTY CONFLICT
Eassy on the eyes. Easy to o install.
®
g Outdoor Acc ents decorative hardware . Y Yo our customers can easily Introducing nd strength to their outdoor proje ects. The new Simpson Strong--T Tie Outdoor add style an Accents line e of structural connectors featu ures an innovative screw and washer set that combines the ease of installing a screw with the look of a bolt. And, with a black powderr--coa at finish, this hardware offers st yle that’s designed to last. ®
To lear n mo To ore about Outdoor Accents decorative hardware, visit our web bsite strongtie .c com/outdooraccents or call (800 8 ) 999-5099.
©2017 Simpson
Strong-Tie Company Inc. OA16-D
50 YEAR LIMITED WARRANTY For Wall, Roof and Floor assemblies where fi re retardant construction materials are specified or required by building codes. D-Blaze is UL® FR-S Classified for a low smoke and flame index. r IRC and IBC Code Compliant r City of Los Angeles Research Report: RR 24502 California Department of Forestry & Fire Protection CSFM BML Listings for D-Blaze Plywood and Lumber r ICC-ESR 2645 r GREENGUARD GOLD Certified
D-BLAZE PRODUCERS SERVING THE WEST SUPERIOR WOOD TREATING www.superiorwoodtreating.com
FONTANA WHOLESALE LUMBER www.fontanawholesalelumber.com
THUNDERBOLT WOOD TREATING CO. INC www.thunderboltwoodtreating.com
ALLWEATHER WOOD www.allweatherwood.com
®
HUFFING AND PUFFING WILL NEVER BLOW OUR HOUSE DOWN ENGINEERED WOOD PRODUCTS
FRAMED BY QUALITY — BUILT WITH SUCCESS
1.844.IB.BEAMS | sales@internationalbeams.com | www.ibewp.com
MAXIMIZE YOUR POTENTIAL – VISIT US AT THE INTERNATIONAL BUILDERS SHOW – BOOTH S1149
January 2017
n Volume 96 n Number 1
The
MERCHANT
Magazine
www.building-products.com
The
MERCHANT
A publication of 526 Media Group, Inc. 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626
Magazine President/Publisher Patrick Adams padams@building-products.com Vice President, Marketing & Circulation Shelly Smith Adams sadams@building-products.com Publishers Emeritus David Cutler Alan Oakes Managing Editor David Koenig david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn, Dwight Curran Director of Sales Chuck Casey chuck@building-products.com
Special Features
In Every Issue
9 FEATURE STORY
6 ACROSS THE BOARD
2017 – A YEAR OF CAUTIOUS OPTIMISM FOR FOREST PRODUCTS INDUSTRY
16 COMPETITIVE INTELLIGENCE
12 MARGIN BUILDERS
18 OLSEN ON SALES
THE NEW YEAR IN FASTENERS
20 EVANGELIST MARKETING
14 INDUSTRY TRENDS
40 MOVERS & SHAKERS
THE NEW YEAR IN SIDING & TRIM
26 NAWLA: THINKING AHEAD
41 APP WATCH
COMPLYING WITH TRICKY REGULATIONS FOR SUSTAINABLE PRODUCTS
44 NEW PRODUCTS
28 SPECIAL FEATURE WWPA SPECIAL SECTION • LUMBER MARKETS GROW STRONGER • SIZING UP THE IMPORT DUTY CONFLICT • BIG NEW STUD MILL RAMPING UP • ANNUAL MEETING FAST APPROACHING
47 EVENT RECAP:
PORTLAND WHOLESALERS LUNCHEON
50 PHOTO RECAP
CALIFORNIA’S 2ND GROWTH MEETING
51 ASSOCIATION UPDATE 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 ADVERTISERS INDEX 53 DATE BOOK 54 FLASHBACK
Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & VIDEO
MERCHANT DIGITAL VERSION
BUILDING-PRODUCTS.COM
FOLLOW ON TWITTER
TWITTER.COM/BLDGPRODUCTS
4
n
The Merchant Magazine
THIS MONTH’S EDITION AS WELL BACK ISSUES OF THE MERCHANT CAN BE VIEWED DIGITALLY AT BUILDING-PRODUCTS.COM AS
n
January 2017
How to Advertise PRINT or ONLINE Chuck Casey or Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com
How to Subscribe SUBSCRIPTIONS Phone (714) 486-2735 Fax 714-486-2745 sadams@building-products.com or send a check to 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping FOREIGN (Contact sadams@building-products.com for surface and air rates, including to Canada) 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, 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 by 526 Media Group, 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®2017 by 526 Media Group, 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
ACROSS the Board By Patrick Adams
This year, I want… NOTHING!
I
LOVE IT WHEN we start a new year. I’ve never heard someone say, “No! If only this year would last just a few months longer!” I remember even when I was young, thinking my Grandmother LOVES the new year! You could actually see the excitement on her face as she organized, changed the calendars, and got ready for a fresh beginning. I think it must have been contagious because even as I write this, the holidays are still ahead of us, yet what I’m really excited about is the new year starting! However, it does make me think about why this is? This year wasn’t a bad one and, in fact, one of the greatest years of my life! Don’t we usually want to hang onto things that are great? My daughter NEVER says, “OK, Daddy, I’ve had enough of Disneyland… let’s leave now!” Good times with family and friends can never last long enough and yet, we’re always excited for a new year to start. We fill our time with “resolutions” and business plans full of the ambitious and dream-filled goals that we aspire to achieve in the “new year.” It made me think about how our goals unfortunately are always relative to our current state. Here’s what I mean. There have been a few times in my life where I was as close to having nothing as you can imagine. I remember during those times, my goals for the new year were simple: food, shelter, and simply an opportunity for me to prove to someone that I deserve a chance for better. However, like everyone, with each step up in life we tend to take for granted that which is behind us and only look ahead at what else we want. It’s kind of an interesting paradox isn’t it? I watch my daughter and even my newborn son learn from experience and mistake—don’t touch the hot pot! When we are in bad times, all we want is to get back to good times and
6
n
The Merchant Magazine
n
try to learn what took us there and what will prevent us from going back there again. Yet, once we get back to good times I think most of us only focus on creating “better” times! Here’s my point—do we spend enough time fully appreciating the good times when we’re lucky enough to have them? This past year, I was blessed with healthy family and friends and even welcomed my newborn son into the world. Our business, employees, readers and clients all did exceptionally well and celebrated all that we do to serve this great industry of ours. Our country also did well and had far more good times than bad when you look at the whole picture. While there is always room for improvement, I think it’s fair to say that for most of us, life is good! So, rather than making resolutions to go to the gym (which I know I won’t), to check something off my bucket list (which half of those things I’m not even sure if I’d enjoy anymore), or to aspire to be more “balanced” (whatever the heck that is), here’s my list for 2017: • Wake up every day and remind myself how fortunate I am and to be thankful that I’m blessed with another day with my family, friends and customers. • Look at the world through the lens of a lifetime rather than a minute. Try to be more patient, more understanding, and more thoughtful in my plans and actions. • Rather than preaching to my children about the people they should grow up to be, try to be the person that they want to grow up to be like. • Take the time to try new things. I know now that I’ll never have “extra
January 2017
time in my schedule.” If I keep waiting for that, the day will never come! • Spend more time in the moment. We are surrounded by “distractors”— our phones, computers, TV, radio, multi-tasking and more. I’m going to try just sitting and watching my kids, walking outside or listening to someone without anything else going on in my hands or mind. • Stop watching the news and other sources of constant negativity! Whatever your list includes, all of us here wish that when you look back on 2017 that you have a smile on your face and are thankful for another good year. It is our goal to serve you and this industry in a way that shows how grateful we are to be a part of your business success! Happy New Year! “Write it on your heart that every day is the best day in the year.” ~ Ralph Waldo Emerson
Patrick S. Adams Publisher/President padams@building-products.com Building-Products.com
TOP P DE ECK. CK.
Ask foor AZEK Buildingg Products, the #1 in Premium Decking. ENGINEE RED T O L AST BEA UTIFULLY
FEATURE Story By David Fortin and Robert Berg, RISI
2017 Another year of cautious optimism for North American wood products industry M
ARKET PARTICIPANTS in the North American wood products market are once again cautiously optimistic as they look to 2017. This caution continues to pervade the wood products markets as uncertainty from the ongoing softwood lumber trade negotiations between the USA and Canada, the uneven U.S. housing recovery and the potential for further OSB restarts stifle optimism. Market participants seem to be gearing up for what they believe will be yet another year of modest demand growth with ample supply availabili-
Building-Products.com
ty. This will likely result in cautious inventory buying behavior early in the year. However, 2017 could easily surpass these cautious expectations, which could result in an insufficient inventory buffer as demand powers higher both cyclically and seasonally in late spring and throughout the summer. Buyers adopted a conservative inventory strategy in 2016 in response to recent market performance and restrained expectations. Unmet price expectations in the North American OSB market in 2013 and more recent-
ly in the softwood lumber market in 2015 translated into debilitating inventory losses. Fresh memories of inventory losses combined with guarded optimism about housing (traders fully in the show-me mode), the OSB industry still acclimating to the startup of over 4.5 BSF of OSB capacity, and the uncertainty surrounding the outcome of the softwood lumber trade negotiations between the USA and Canada drained enthusiasm for building inventories in 2016. Consequently, as demand moved
January 2017
n
The Merchant Magazine
n
9
ÂŽ 2016 RISI, Inc. All Rights Reserved
both seasonally and cyclically higher throughout the year, buyers were forced to keep the frequency of ordering elevated to meet final demand, driving prices higher in a relatively orderly fashion through much of the year. This allowed producers to generate solid cash flow, and the conservative inventory strategy proved successful as buyers were able to acquire wood on an as-needed basis. Many industry participants are planning for another year of modest demand growth in 2017. U.S. housing starts have yet to consistently break out above the elusive 1.2 million unit mark. In fact, the two times they surpassed that watermark between January and September 2016, they fell below it the following month. At the time of submitting this article it remains to be seen what happens after October’s eye popping 1.32 million housing starts. Despite healthy demand, U.S. housing production has been held back by the supply-side constraints of labor and land availability. At this point, the show me mentality of traders with regard to the housing markets has kept the consensus forecast at a mild 8% increase to 1.26 million units in 2017, according
10
n
The Merchant Magazine
n
to forecasts compiled by the APA. In addition to expectations for modest demand growth, overall uncertainty has been on the rise in recent months. From the potential trade, financial and immigration policy changes under the incoming Trump Administration to the unsettled softwood lumber trade negotiations, rising mortgage interest rates, new OSB capacity and mill restarts, and the strong dollar, to name a few, there is plenty to keep the wood markets unsettled. In this environment, traders are likely to maintain their conservative inventory buying strategies and producers are likely to plan conservatively and hope to be surprised on the upside. Although many hold conservative views on the wood products markets for 2017, reasons for optimism are growing. On the demand side, household formations (demand for shelter) remain strong and averaged more than 1.17 million through third quarter of 2016. While this is down from the 1.9 million households formed in 2015, it is on pace with underlying demographics and demand fundamentals. The owner-occupied segment of
January 2017
household formations is up from only 33,000 units in 2015 to an average of 414,000 units year-to-date in 2016. The strength in the owner-occupied segment of household formations has been mirrored somewhat in housing starts, where single-family starts have averaged 778,000 units through October, up 11% from 2015. The resurgence in single-family starts bodes well for wood products consumption as single-family homes are nearly double the size and consume three times the wood on average as a multifamily unit. Demand for shelter should remain strong in 2017, supported by continued gains in employment, wages and consumer sentiment. With shelter inventory extremely tight, this demand will put increasing pressure on the existing shelter stock, which should eventually translate to increased residential construction as the supply-side constraints of labor and land eventually ease. The U.S. residential construction market garners most of the attention, but the residential repair and remodeling market is the largest end-use market for softwood lumber and the second-largest for OSB in the USA and Building-Products.com
therefore deserves serious consideration in any wood products outlook. In the absence of a notable increase in residential construction, demand pressure will continue to push home price appreciation well above underlying inflation and wages. A tight shelter market and escalating home prices will remain a boon for the residential repair and remodeling market as potential trade-up buyers make the decision to add-on in lieu of trading up. This will drive wood consumption in this end-use market higher as not only will the total expenditures in this end-use market increase, but the wood usage per dollar spent on these major alterations and additions tends to be more wood intensive (see chart at left). On the supply side, lumber and OSB may not be as readily available throughout 2017 as they were in 2016. The increase in Canadian softwood lumber production and shipments to the USA in 2016 will be difficult to maintain in 2017. Lumber producers in British Columbia are already starting feel the pinch from limited fiber supply due to the mountain pine beetle, and simply maintaining the 2016 production gains in 2017 will be challenging. Meanwhile, producers in Quebec and Ontario will have to address the challenges of lackluster demand for residual fiber and the cost of accessing the additional timber available in the region to increase production in 2017. Furthermore, the impact that potential duties or quotas would have on Canadian shipments to the USA needs to be considered. Supply from offshore markets helped buffer the North American softwood lumber market as demand improved cyclically in 2016. Offshore imports ratcheted higher in
response to the strong U.S. dollar, rising domestic demand and strong prices, but still only accounted for an estimated 2% of demand compared to an apex of 4% during the previous peak in 2005. This source of supply is likely to rise again in 2017, but will remain relatively small on a volume basis. Finally, with U.S. western lumber production likely to improve only incrementally due to the elevated cost of timber, the key to the supply/ demand balance in 2017 will be the rate at which lumber production in the US South expands. Meanwhile, the OSB industry is finally approaching the point of full utilization of the 4.5 BSF of capacity that was restarted earlier in the recovery. Stronger market fundamentals have engendered plans for further capacity expansion in the OSB market with three potential mill restarts at Huber’s Spring City, Tn., mill, Norbord’s Huguley, Al., mill and Tolko’s High Prairie, Alberta, mill as well as the first greenfield mill the market has seen in years, Martco’s Corrigan, Tx., mill. The Texas project is not slated to start producing OSB until the third quarter of 2017 and Huber’s restart not until 2018 with potential startup timelines for the Norbord mill and Tolko mill yet to be determined, but the anticipation of additional capacity seems to already be influencing market behavior heading into early 2017. However, this new capacity will not have a material effect on the supply/demand balance in the market next year as any additional supply from the planned capacity additions will not be available to the market until after demand reaches peak seasonal levels in third quarter 2017 (see table below).
It is easy to understand why many market participants are cautiously optimistic about the North American wood products market in 2017. The slow recovery in U.S. housing starts that is now going into its eighth year, the unresolved softwood lumber trade negotiations and potential duties levied on Canadian shipments to the USA, the uncertainty surrounding the policy goals of the incoming Trump Administration, recent inventory corrections in both lumber (2015) and OSB (2013), and readily available supply throughout 2016 have resulted in a flashing yellow light for the wood products market heading into 2017. These factors may dampen market expectations, but not necessarily final demand. RISI remains optimistic and expects demand for wood products to improve and outpace supply gains in 2017. In this scenario, modest inventory strategies implemented early in the year coupled with conservative production plans could result an insufficient inventory buffer, forcing both buyers and producers to chase the market higher as demand approaches peak seasonal levels during the second half of the year. – David Fortin, director, wood products for RISI, is co-author of The Lumber Commentary, The North American Lumber 5-Year Forecast, and The North American Lumber 15-Year Forecast. Based at RISI’s Bedford, Ma., office, he can be reached at dfortin@risi.com or (781) 734-8974. Bob Berg, economic advisor, wood products, works out of his Julian, Pa., office and can be reached at bberg@risi. com, (781) 734-8914, or David Fortin (814) 441-6110.
Potential OSB Capacity Additions Potential Startup Date
Capacity, MMSF
3Q 2017
850
Huber, Spring City, Tennessee
2018
450
Norbord, Huguley, Alabama
TBD
500
Tolko, High Prairie, Alberta, Canada
TBD
650
Mill Martco, Corrigan, Texas
® 2016 RISI, Inc. All Rights Reserved
Building-Products.com
January 2017
n
The Merchant Magazine
n
11
MARGIN Builders By Mike Dill, Paslode
Planning for your year in fasteners S
OME REGARD fastener selection as a simple “toss in the cart” decision in-store. However, that approach can add up to trouble if you haven’t chosen the best one for the job. Professionals need fasteners that fit the specific project at hand and meet or exceed the industry standards. To help take your work to the next level in 2017, we have compiled a list of five key considerations to guide choosing the right fastener for the job.
Consideration #1 — Does the fastener’s type fit the needs of the job? Every fastener has an intended use, and often times factors like the head shape or style, shank size, and finish will help a renovator match the right fastener to the task at hand. For example, fasteners made from stainless steel might provide the right amount of corrosion protection for an outdoor job using wood materials, but it may not have the right thread form or diameter to make a secure attach-
ment to the structure. It’s important to take all of a fastener’s attributes into consideration when choosing which one to use. Consideration #2 — Does the fastener meet industry standards? Fastener manufacturers produce and test to industry developed standards such as those created by ASTM and ANSI. These organizations ensure that materials and processes meet standardized industry agreed upon performance. For wood, concrete and masonry fasteners and anchors (and many other types), professionals should also look for a test report developed by the ICC (International Code Council). This assures structural engineers and inspectors that the product has been rigorously tested to meet specific applications in the field. Consideration #3 — Does the manufacturer stand behind its products?
The importance of product warranties and support can’t be underestimated. Check that the fasteners you’re considering have backup to their warranty claims. Claims of a multi-year or “lifetime warranty” are common but may not be backed by a reputable company that offers timely field support and customer service. Check the product’s packaging, website, or call its customer service line to ensure the right kind of warranties are in place for the needs of the project. Consideration #4 — How simple is the installation? Technological innovations have made mechanical fastening simpler and more reliable than ever. Some fasteners, such as Tapcons, can be installed with just a hammer drill, drill bit and sleeve/socket combo. But, be aware of the added costs—in both supplies and labor—that can come with purchasing certain fasteners that require special or additional tools and steps—all of which lead to lower productivity and profits. Consideration #5 — How are other trades talking about the product and its performance on the job site? The best way to understand a fastener’s reliability is to listen to the experts: the renovators who use them every day. Be sure to actively search reviews online through general searches, industry message boards, and trade publications to get a full range of peer feedback. If you keep these five considerations in mind, you will be well positioned to deliver high-quality results throughout 2017.
TAPCON masonry screws hold securely in concrete, block and brick.
12
n
The Merchant Magazine
n
January 2017
(Photo courtesy of ITW)
– Mike Dill is innovation manager for Paslode. Reach him via www.paslode.com. Building-Products.com
WHAT’S IN A NAME? A PROMISE. Since 1855 “My family has been in the lumber business for four generations and we’ve been committed to sustainable forest management since 1940. I’ve been a lumber grader, a forester, a management trainee and a project specialist. As a land-based company, we’re committed to the places where we operate. By nurturing the forests and communities that provide our natural and human resources, we intend to serve our customers for generations to come.” Terry Collins, Forester, Collins Almanor Forest
Collins Softwood Lumber Dimension, Commons and Industrials, Slicing Flitches
Collins Pine FreeForm® NAF, CARB Exempt MR50 Particleboard Declare Product SM
Collins Hardwood Lumber Millwork and dimension Veneer logs
TruWood Siding & Trim Engineered wood siding & trim
Information and Sales: 800.329.1219 CollinsWood.com
Feel good about it
INDUSTRY Trends By Matt Gibson, Certaineed
Planning for your year in siding and trim T
construction is beginning to rebound, the industry is also noticing steady increases in remodeling. MetroStudy’s recent Residential Remodeling Index reported 4.5% more home remodel projects in the third quarter of 2016 than in the same period of 2015. This increase stands as the 18th consecutive quarter of year-over-year gains in residential remodeling projects. What’s more, MetroStudy is forecasting that such activity will increase another 4.4% in 2017 and 3.3% in 2018 as a product of rising mortgage interest rates and homeowners’ resulting decisions to stay put. Given that most improvements made to create a more vibrant exterior and increase weather resistance garner a significant return on investment, it’s likely many of these remodels will involve new siding and trim products. Today’s homeowner understands the advantages of alternative cladding materials like vinyl, polymer and cellular PVC over traditional materials, such as wood, stucco and stone. In addition to being low-maintenance, weather-resistant, lower priced, and easier to install, their ability to replicate the classic, time-honored appearances of traditional cladding materials continues to improve. Let’s look at some of the trends in more contemporary exterior cladding materials we can look forward to this year. HOUGH NEW HOME
More Design Options Allows Better Mixing, Matching LOOKING AHEAD: Continuing expansion of cladding color and profile options help fuel ongoing growth in home exterior remodeling activity. (Photos courtesy of CertainTeed)
14
n
The Merchant Magazine
n
January 2017
Due to emerging new color and texturing technologies, exterior contractors and their customers can expect Building-Products.com
LOOKING AHEAD: Continuing expansion of cladding color and profile options help fuel ongoing growth in home exterior remodeling activity.
to find even more classically-styled vinyl, polymer and cement-based cast stone veneer cladding and trim options in 2017. This growth in options will allow building professionals more tools for creating the more striking, vibrant exteriors today’s homeowners want by mixing and matching different siding colors and styles. For instance, with the current selection offered by top building product manufacturers, a contractor could mix horizontal and vertical vinyl siding, smooth or woodgrain textured, in a wide array of different colors. Most smooth textured vinyl siding authentically replicates the classic look of painted wood siding, but with the color incorporated into the product. This ensures fade resistance and eliminates the need for repainting every few years. Wood-grain textured vinyl and polymer siding continues to look more and more like the real thing, as products are often manufactured in molds that were pressed against real roughcut wood lumber. These products can often have the pigment of stained wood and are now increasingly available in color blends that emulate aged wood. But, with the coloring technology used for vinyl and polymer siding, this color blend will weather just as well as the solid colors. Homeowners will have virtually the same aged wood color in their siding after 10 years as they did day one. For homeowners wanting some contrast in the gables and other higher areas of the home, building professionals can draw from an ever-growBuilding-Products.com
ing variety of cedar-style polymer shake, shingle and half-round profiles in various painted and wood stain colors and sizes. For example, some homeowners might like a rough-split staggered shake pattern, while others may prefer a more uniform look. Demand is growing across the country for the “sawmill look,” straight edge shingles with a smoother cut and increased uniformity, creating what will likely become a popular siding accent trend this year.
Stone Veneer Cladding Another growing exterior cladding trend stems from the introduction of stone veneer products, which allow the average siding contractor to tap into the profitable stone masonry market. These cement-based products are molded from hand-picked stones and colored to authentically replicate natural stone color and texture at a significantly more economical price. The mechanically-fastened panels are easier to install than real stone, using techniques, tool and accessories common to the average siding contractor. And rain screens are now available that offer the latest in moisture management technology, for enhanced weather protection. Homeowners are sure to take to the stone veneer style siding for its beauty, low-maintenance and high return on investment.
More Trim Design Options & Easier Installation The product selection in cellular PVC and vinyl trim has also grown in the past year. Most consumers prefer
to use white as a vinyl accessory color to ensure an absolute complement to other exterior colors and make windows and doors stand out, but manufacturers are now giving consumers more accessory color options, such as darker colors that boldly complement a lighter siding color. Manufacturers are addressing the industry’s need for more trim profile options with product introductions such as wider window corners, water table profiles and New England window sill profiles. This trend will allow trim to have an even greater role in sprucing up exteriors. Contractors seeking an even smoother trim installation will be happy about the recent introduction of engineered trim systems, which decrease labor by including more prefabricated corners and other trim pieces in the initial shipment.
The Options Are There— Choose Wisely This year is bound to be a great one for building professionals, and the new product options now available to them are sure to make it even better and more profitable for dealers. The best advice is to seek out a brand that can offer a one-stop shop for exterior building product needs, with a wide selection of low-maintenance materials, colors, styles and profiles that will truly get homeowners excited about the goal of a revived home exterior. – Matt Gibson is marketing director for CertainTeed Siding. Reach him via www.certainteed.com.
January 2017
n
The Merchant Magazine
n
15
COMPETITIVE Intelligence By Carla Waldemar
Onward and outward D
ON’T YOU HATE
it when that happens? Every time you expand your store, in a month or three you need to expand it again. Whether it’s a law of physics (“Nature abhors a vacuum”) or a principle borrowed from baseball movies (“If you build it, they will come”), it seems as if, right after the grand re-opening, you’ve already run out of room. Even in tiny Bonners Ferry, so small a town in Idaho (in fact, it’s almost in Canada) that it gives you eyestrain trying to find it on the map. Jeff Brubaker, owner of Pro X Home Center there, describes his hometown
as “a bedroom community, an aging community, with a lack of businesses. Used to have three sawmills, now down to one. Well, there’s the border patrol building: the government is our biggest employer.” Jeff himself employs 35 hardworking staffers, up from four when he went into business in 2004 (and he’s still looking for a few more hires). Besides, he boasts, “It’s one of the prettiest towns in the Northwest, and voted the friendliest.” Nice, but it doesn’t put bacon in the skillet. Or maybe it does. People are build-
RECENT GRAND opening celebration marks Idaho home center’s transformation from a small-town lumberyard into a major regional center for do-it-yourselfers and contractors alike.
16
n
The Merchant Magazine
n
January 2017
ing new homes here. For many years, Jeff was a residential contractor doing just that until he realized he’s not a kid anymore: “Pretty soon, I won’t be able to handle this.” So he started manufacturing steel carports. But those contractor customers wouldn’t let him stop with that; they kept at him to supply lumber and shingles and such, and then kept right on agitating until they got him to open a complete home center. “I went from Protector Carports to Protector Exteriors to Pro X Supply to Pro X Home Center,” he relates—and that’s the executive summary of the past 10 years. Here’s how it all unrolled: By 2009, Jeff had bought a grocery store out to give his operation more space and better access. “But as soon as we moved in, we started the whole thing all over again, expanding every year.” In 2012, he added a double drive-thru. “Customers love it because it’s covered, so no more icy boards in winter, breaking them apart,” he laughs. “They’re well-stacked inside and heated in the winter evenings.” In 2014, once again, “we’d run out of room. So I bought the adjacent land, a couple of acres, so we could get things stashed and mashed out of the store. Our co-op took a look and advised, ‘Go for it! The market’s yours to own; you just need to do it.’” So Jeff decided to build a new store from the ground up. He sat down with his bankers, and the new operation opened in 2015. Providing 10,000 sq. ft. of retail, compared with 4,000 sq. ft. in the original building, presented Pro X with an opportunity to add new lines and expand existing ones presently Building-Products.com
PRO X Home Center owner Jeff Brubaker (top) has overseen the aggressive expansion and continually remaking of the business, assisted by his son, Andrew (bottom), who serves as store manager.
too small to satisfy his clientele. “We added housewares (we’d had virtually none), including more appliances. Lawn & Garden really expanded. And tools! Now they’re a big thing.” Next up—transforming the former retail building into a Home Décor & Design Center, primed to debut in 2017. Oh, and besides that, “we’re already in the middle of an addition of 2,500 sq. ft. to the new store.” More space and more lines mean more staff. And Jeff’s hiring. However, in the small community of Bonners Ferry, “it’s hard to find folks with experience. There’s only Building-Products.com
one other yard in town. So we do a lot of training.” It’s paid off. Business has grown every single year, including during the nation’s recession. “The downturn didn’t influence us; we just kept on expanding the whole time, and each year proved better than the last. But that’s because that, to succeed, we need to serve a wider area beyond this small town—North and South Dakota, Colorado, Kansas, even Canada. Our contractor customers also find work in these areas, and then they call on us,” he explains. What do these pros appreciate, exactly? Top customer service—the first answer this reporter hears whenever asking that vital question. Also, Jeff adds, “Our quality. I try to buy the most expensive wood I can get, not the cheapest, and our contractors really appreciate it. Let the other outfit in town sell the cheap stuff. Top-quality is our niche,” he proclaims. And top delivery, via a fleet of half a dozen trucks, able to deposit drywall inside a house and shingles on the roof. A box truck ensures cabinets and flooring stay dry and well-protected. While Pro X’s pros are valued customers, it’s the do-ityourselfers who provide the highest ticket counts, which produce up to 60% of the operation’s revenue. (And the new store saw that count jump from 350 tickets a day to 500, even 750.) Not only do staffers roam the floor, prepared to answer questions, but Jeff’s daughter oversees the K&B department and also helps homeowners plan their new decks, renovations and additions. (“She’s really good at what she does,” says Dad, who’ll put her in charge of the upcoming Home Décor Center.) But the biggest draw is the broadened variety of products—and access to them. “Before, we didn’t offer shopping carts because the aisles were too narrow. People would make a beeline for their item and get right back out. Now, they love to browse.” Last spring’s grand opening made a huge impact, with special events each weekend for a month (“We fed 500 people burgers and hot dogs” on one of them), with vendors on hand, tool demos, even chainsaw carving (“very entertaining. We don’t see things like this in this small town”) and lots of drawings. “It pulled in a lot of folks new to us, and new customers still keep coming in, including Canadians driving through.” Pro X also reaches potential walk-ins through a Facebook account, manned (womaned) by a savvy young staffer. “Plus circulars and lots of radio,” adds Jeff. And, this writer has to mention, a mesmerizing promo monologue as phone-hold message. That voice? “People either love it or hate it,” Jeff reports—but it definitely gets their attention. (Those curious may hear it after hours at 208-267-7561.) What does the future hold? Well, more additions would come as no surprise. Beyond that—well beyond—Jeff has seven children and hopes someday “surely a couple might want to take it over.” In the meantime, it’s business as usual, which translates to unusual growth.
Carla Waldemar cwaldemar@comcast.net January 2017
n
The Merchant Magazine
n
17
OLSEN On Sales By James Olsen
Sales is confidence T
OO MANY SELLERS confuse competence with confidence. They believe that if they work hard and know their product, markets and sometimes even their customer’s needs, they will be successful. They are partially correct. Competent sellers achieve competent results. Our problem is that you and I do not want competent results; we want world-class results! All else being equal, and usually it is—we are in competitive markets—the tie goes to the most confident seller. An important distinction: we may feel/be confident “on the inside” but we must project confidence also. Our customers will be infected by the confidence (or lack thereof) that radiates from us; when they feel the confidence in us, they will feel it in themselves. Lack of confidence also radiates. If we are nervous, our customer will be nervous. If we are anxious, our customer will be also. ALL emotion radiates and infects.
Confidence Killers Body Language. Ninety-three percent of our communication is non-verbal. If we shamble into our customer’s office like a nervous teenager, they will treat us like one. Shoulders back, smile and relax. If we need to, do self-talk and deep breathing before the meeting—it works. Um, And-Um, Uh. These are momentum and expertise (ours) killers; experts don’t um. These utterances also make the customer restless and uneasy, neither of which leads to getting the business. Good, good. Another nervous tic said after gaining a piece of information from our customer. Salesperson: “How much of that do you use per month?” Customer: “We use about four carloads a month.” Salesperson: “Good, good. And…” It makes us sound like we are writing down items off a checklist. OK or Kay. For example, on an objection: Customer: “I can’t use that right now.” Quotron (almost before the customer finishes his sentenc): “OK!” This “OKing” is a white-flag, I-give-up-I-knew-youwere-going-to-say-no-anyway response. In many cases it is an interruption of our customer’s continuing thought and most importantly, never gets the order. Up-Speak. Katy Kay and Claire Shipman cover upspeak in their brilliant book, The Confidence Code. Upspeak is ending any sentence except a question with an upward lilt of the voice. Master Seller: “My name is Julie Powers from ABC and Associates.” Up-speaking Quotron: “My name is Julie Weakers from
18
n
The Merchant Magazine
n
January 2017
ABC and Associates?” Up-speak has an “I’m-sorry-to-barge-in-on-you-likethis-and-I’m-not-worthy” tone to it. Up-speak says— screams—that you don’t believe in yourself. Others will not be able to believe in you either. Cough, Ahem, or… Before Giving the Price. Many sellers unconsciously cough, ahem or make other mumbled sounds right before giving the price. Customers hear and feel this lack of confidence.
How to Project Confidence Be prepared. Nothing will help us feel and project more confidence than preparation. We must anticipate all questions/objections and have planned-out, rehearsed answers to them. We must know the details of our proposal. One of the biggest differences between sellers who dominate and the rest is that they are prepared to C-L-O-S-E not just get close and I’ll call you back. When we are ready to close our customers will know it and will come to expect it. Smile and laugh. We don’t need to exaggerate either, but smiling, laughing and chuckling project huge confidence and will help our customers relax and be receptive to us. The opposite is also true. Get to the point. When “small talk” ends and business begins is a dance based on our customer’s preference and our relationship with them. But when the pleasantries are done, do not beat around the bush. The best sellers are simple and direct in their approach. Acting like we are with our customer for any other reason than to do business is disingenuous, confusing and irritating; this fugue state does not get the business. Stay relaxed through negotiations. This is the biggest difference between the master sellers and the rest. Many salespeople are charming, friendly and loose until they get to the business part of the call. Then they lose all their charm and friendliness. This, of course, signals the customer to do the same. Master sellers overcome all objections and make all seem possible with their confident, easy tone. Ask for the order. In a positively assumptive way, ask for the order and ask often. Sales is confidence. Confidence is the stardust of sales. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
EVANGELIST Marketing By Alex Goldfayn
10 revenue growth truths for a strong start to 2017
I
T’S TIME TO
talk about how to have the strongest possible start to 2017. Here are 10 revenue growth truths and techniques. Implement them into your company, and your sales go up significantly and quickly. • On average, most customers only know about 20% of what you can sell them, so always tell people about the various ways you can help them. We don’t need to increase this number to 80% or 100% to grow. Merely upping it to 30% will result in dramatic growth for you. • As such, it’s impossible to over-communicate with customers and prospects. Just because you’ve told somebody about your other work two weeks ago, doesn’t mean they remember it today. That’s why you always hear customers say, “I didn’t know you do that.” You can’t overcommunicate, so communicate relentlessly. • Companies that have a good list of customers and prospects always grow more and faster than those that don’t. We must know whom to sell to. A good list should consist of humans, with names and contact information, not just company names. • The discomfort with testimonials is ours, not our customers’, who are generally happy—which is why they’ve been buying from you for years or decades. People love being asked what they think. In fact, they feel honored and grateful. Nobody ever says, “I’d rather not share with you what’s on my mind.” Ask for testimonials and you’ll receive them. • Similarly, people love giving referrals. If you don’t believe me, at your next social event, ask a group of people for a recommendation for a chiropractor, dentist or house
20
n
The Merchant Magazine
n
January 2017
painter. People will trip over themselves making sure you use their person. So, ask. • Most salespeople are governed by their fear of failure, which is usually greater than their need to feed their family. As such, they would rather avoid the possibility of rejection than ask for business. Teach your salespeople that hearing “no” is not failure. Rather, not asking for the sale is failure. • Imagine what your sales would do if every salesperson pivoted to the sale and asked for the business with every customer and prospect they interacted with. My guess is your revenue would jump instantly. • Because most of us hear from customers when they need or when they’re upset about something, we lose sight of the fact that most of our customers are very happy with us. It’s just that we don’t hear from these happy customers because, like you, they’re busy, and there’s no reason to pick up the phone when everything is going well. So, remember, your customers love you. You do amazing work for them. You really help them. Know this, but also feel it. Really feel it in your heart that your customers love you. • Got it? Now, I need you to behave accordingly. That is, boldly! Be bold. Be confident. Be enthusiastic. When in doubt, communicate. You’re never taking your customers’ time, instead you’re helping them tremendously. You’re never bothering customers, you’re making their lives and work better. Revenue growth is no place for the meek. Be bold. Your market deserves that from you. • Behaving boldly means picking up the telephone. Most salespeople vastly overestimate the number of hours per week they spend on the phone because the majority of them hate phone work and seek to avoid it. So they think about it a lot instead of using it (the phone) a lot. In my studies, the average salesperson for a manufacturer or distributor spends about four hours per week on the phone. Four! Out of 40 to 50 hours per week. Guess what happens to sales when we double your weekly phone time? They shoot up. – Alex Goldfayn runs The Revenue Growth Consultancy and is author of The Revenue Growth Habit. Visit www.evangelistmktg.com. Alex Goldfayn The Revenue Growth Consultancy alex@evangelistmktg.com Building-Products.com
OR’s Tum-A-Lum Buying WA’s Marson & Marson Three-unit Oregon retailer Tum-ALum Lumber has agreed to acquire four-unit Washington State dealer Marson and Marson Lumber, effective January 3, 2017. “This acquisition is the first step in Tum-A-Lum’s growth strategy,” said M. David Dittmer, CEO of Tum-ALum. “Marson and Marson is the top supplier of building materials in the market area they serve. Because of their very strong brand recognition, they will continue to operate under the
name of Marson & Marson. The communities Marson & Marson operate in are very similar to the Tum-A-Lum markets. Marson and Marson is a great fit for our organization.” In addition to lumberyards in Wentachee, Leavenworth, Chelan and Cle Elum, Wa., Marson & Marson also operates a truss plant, design center, and drywall distribution center. Founded in 1955, it is currently overseen by second-generation president Ken Marson, Jr.
SUPPLIER Briefs Ace Hardware will build a new store this year in North Ogden, Ut. Salmon Creek Ace Hardware, Vancouver, Wa., will move from its current 5,000-sq. ft. space to the 15,000-sq. ft. storefront next door, allowing room for triple the inventory.
Ace Hardware has added a new location in Lodi, Ca. (Paul Lebarre, manager). Ganahl Lumber is tentatively shooting for an April 17 opening of its first South Bay location now under construction in Torrance, Ca. Orchard Supply Hardware is adding new stores early this year in Belmont (Portland), Or., and Hollywood, Ca. Weyerhaeuser has moved its headquarters from 400 wooded acres in the suburb of Federal Way, Wa., to a new seven-story building in Seattle’s historic Pioneer Square district. IdaPine is now operating at about half full capacity at the former Plum Creek mill in Meridian, Id. Within the next two years, IdaPine hopes to more than double the size of its current 12-man workforce and increase annual production from 80 million bd. ft. to 150 million bd. ft. NanaWall Systems has opened a 2,400-sq. ft. showroom in Vista, Ca., to show off its opening glass wall systems (Matt Galloro, showroom manager). Epicor BisTrack is now integrated with Avalara’s software as a service offering for sales tax management. Viance LLC, Charlotte, N.C., has clarified and enhanced its existing Lifetime Limited warranties for residential preservatives, to highlight the acceptable use of above ground treated wood products. Anniversaries: Matheus Lumber, Seattle, Wa., 85th … Spenard Builders Supply, Anchorage, Ak., 65th … Thunderbolt Wood Treating, Riverbank, Ca., 40th.
22
n
The Merchant Magazine
n
January 2017
Building-Products.com
Building-Products.com
January 2017
n
The Merchant Magazine
n
23
Fox Reviving Mary’s River Mill Fox Lumber Sales, Hamilton, Mt., is taking over the former Mary’s River Lumber sawmill in Montesano, Wa. The facility has been idle since last March, when Mary’s River shut down the entire 42-year-old company due to trouble getting logs (see April 2016, p. 28). The Montesano mill was completely rebuilt in 2012 after a fire. Fox will restart the mill with a staff of about 20, in hopes of eventually employing as many as 40.
Omak Mill to Close Again Effective Jan. 29, Omak Forest Products is pulling out of operation of the Colville Tribal Federal Corp.owned plywood and veneer mill in Omak, Wa. Omak stopped milling logs at the end of the year and will cease marketing product by mid-January. The company has lost nearly $1 million in the 11 months since it began operating the mill. It had stepped in after Atlas Holdings subsidiary Omak Wood Products ended its contract and log supply deal with the tribe. Atlas spent an estimated $15 million in refurbishments and losses since 2012 to keep the mill going, yet current GM David Niessner
24
n
The Merchant Magazine
n
said further equipment investments are need to make the mill more competitive. He said it would take about $5 million to make it profitable. The impending closure will put 217 employees out of work, but the Colville Tribe is committed to reviving the facility and resuming logging on its forestlands.
Rosboro Finds Buyer for Mills Three weeks after selling its timberlands, Rosboro, Springfield, Or., found a buyer for its seven manufacturing facilities in Oregon. Private equity firm Wynnchurch Capital will assume ownership of the plants, which produce laminated beams, plywood, veneer and lumber, partnering with the current management team. In November, Rosboro sold its 95,000 acres of timberland to investment group Campbell Global (see December, p. 22).
Endura Joins with Contact Contact Industries, Clackamas, Or., has agreed to be purchased by Endura Products, Colfax, N.C. “Endura Products is an excellent strategic partner for Contact Industries
January 2017
and will provide a strong foundation and additional resources to support our employees, customers and the community,” said Contact CEO Frank Pearson. “The opportunity to team up with Endura will allow Contact to serve the customers of both organizations and to use our breadth of capabilities to provide innovative wood products solutions to a broader range of customers.” Contact put its 555,000-sq. ft. manufacturing plant on 82 acres in Prineville, Or., up for sale last spring. Existing management will continue overseeing its day-to-day operation, with its 215 employees. The deal was expected to close by the end of last month.
Idled NM Mill Gets Closer Look The Mescalero Apache Tribe has been awarded a federal grant to evaluate the feasibility of restarting one of its two former Mescalero Forest Products mills in Albuquerque, N.M. The $99,900 grant from the U.S. Department of Agriculture will help the tribe evaluate the market for restarting the mill and assess the forestlands that will supply it. Tribal officials say closure of the two mills put nearly 300 employees out of work.
Building-Products.com
THINKING Ahead By Court Robinson, Robinson Lumber Co.
Why comply? Meeting the demand and difficult regulations for sustainably produced products
I
1900, P RESIDENT William McKinley signed the Lacey Act into law, banning the trade of illegally procured wildlife, fish and plants. In 2008, an amendment to the act added timber and paper to the list of banned trade products. The amendment also included a requirement that the name, value, quantity and country of harvest origin be stated for some products. The aim of the amendment was to make sure that products were being brought into the U.S. from legal sources. It forces companies in N
About NAWLA NAWLA (North American Wholesale Lumber Association) is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.
26
n
The Merchant Magazine
n
the lumber industry to work harder to verify legality and scrutinize their suppliers. But the Lacey Act isn’t the only check on the industry. Consumers are now more aware of the importance of compliance and are starting to demand sustainably produced products. Programs such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) are now more prevalent in the industry and, as such, some customers are choosing to only buy from suppliers that can provide products that are certified. The Lacey Act is the only decree companies must follow by law in the United States; the other certifi-
January 2017
cations are optional, but customers are increasingly more eager to buy certified products. The European Union has its own version of the Lacey Act called the EU Timber Regulation (EUTR). The regulation requires the importers to prove that the timber was responsibly harvested and hold documentation that proves the full chain of custody.
Devoting Time and Resources While being sustainable is certainly the goal, complying with sustainability programs can often be difficult. Much time and resources need to be devoted to having a sustainability compliance program. Most large companies have at least
Building-Products.com
A Special Series from North American Wholesale Lumber Association
one full-time employee who is dedicated to handling compliance. But, for smaller companies, that’s not always feasible. Customers are demanding more and more documentation to keep up with the regulations, and it is becoming more of an administrative burden to prepare these documents and administer a robust compliance program. At Robinson Lumber Company, we have developed a program whereby we collect documentation for each order that can prove the legality of the transaction. We have two people that spend part of their time on compliance programs and make sure the systems are being implemented company wide. We are FSC certificate holders, too, so we have to administer that program. We also spend a lot of time working directly with our suppliers and making sure they are procuring legally sourced products and that they have the documentation to prove it. In some cases, we have instructed our suppliers on what kind of documents they need to provide us in order to remain in compliance.
One Size Does Not Fit All However, every company is different. As such, each company’s program or system should be tai-
lored to their business and what type of products and transactions they do. There isn’t a one-size-fits-all system. If your company doesn’t have the time or resources, you still have to comply with the Lacey Act as it is the law, but it would be a good idea to have someone on staff devote part of their time to reading up on the rules and implementing a system. Ignorance is not something that the federal government will take as an excuse. The more you know about these laws, the better off your company will be. While it may be time consuming and difficult, it is much better to have a system rather than deal with reinventing the wheel every time. The system can be fairly simple if you are involved in simple transactions that are low risk, but a system should exist. The more robust systems will come into play for companies that import rarer species from countries that are of higher risk. So, what happens if your company isn’t in compliance? At some point, the federal government and/or one of the certification bodies will find out. If you are skirting the Lacey Act, then it’s likely that you will be fined and/or prosecuted. The other consequence, while not as severe, is that customers will likely
turn to other suppliers that can provide the documentation needed and provide certified and legal products. It pays to be in compliance! – Court Robinson is business development manager for Robinson Lumber Co., New Orleans, La., and a member of NAWLA’s marketing committee.
Lacey Act: A U.S. law that bans trafficking in illegal wildlife. A 2008 amendment added timber and paper.
European Union Timber Regulations: For sales to Europe, there is what’s called the EUTR (European Union Timber Regulations), which is similar to the Lacey Act but has some differences. These programs require the importers to prove that the timber was responsibly harvested and hold documentation that proves the entire chain of custody.
Forest Stewardship Council (FSC): An international nonprofit organization established in 1993 to promote responsible management of the world’s forests by setting standards on forest products, along with certifying and labeling them as eco-friendly.
Programme for the Endorsement of Forest Certification (PEFC): An international nonprofit, non-governmental organization dedicated to promoting sustainable forest management through independent third-party certification.
Building-Products.com
January 2017
n
The Merchant Magazine
n
27
WWPA Special Section By Frank Stewart, Western Wood Products Association
U.S. lumber markets continue to strengthen U
.S. LUMBER DEMAND grew to an estimated 45.69 billion bd. ft. in 2016 on the strength of a slowly improving housing recovery that bottomed out during the 2008 financial crisis. New home construction is expected to reach 1.23 million starts for 2016 driven by continued growth in the multifamily sector that will see 420,000 units built by year’s end. Single-family construction will finish the year with a modest improvement to 809,000 homes despite a slim housing inventory and rising home prices. Residential repair and remodeling (R&R), the largest lumber market by volume, continues to buoy lumber demand. R&R construction is expected to consume approximately 17.04 billion bd. ft. of U.S. production in 2016 and 2017 demand is forecast to increase to 17.49 billion bd. ft. New residential construction lumber demand is forecast to increase from an estimated 14.86 billion bd. ft. in 2016 to 16.48 billion bd. ft. in 2017. Single-family starts are forecast to increase to 920,000 starts, while multifamily are expected to see a slight decrease to 395,000 units based on reports of expected inventory overhang in a number of key markets. Interest rates are expected to rise in 2017 but home loan rates are predicted to remain affordable. High consumer confidence, coupled with steady job growth, improving take home pay, and continued slow economic growth, will contribute to mod-
28
n
The Merchant Magazine
n
est but sustainable gains in lumber demand for new home construction in 2017. U.S. lumber production is expected increased an estimated 4% to 47.95 billion bd. ft., compared to 45.69 billion bd. ft. in 2016, according to WWPA. Lumber production in the West is expected to climb from 13.9 billion bd. ft. in 2016 to 14.3 billion bd. ft. for 2017. Western Wood Products Associa-
January 2017
tion represents lumber manufacturers in the 12 Western states and Alaska. Based in Portland, Or., WWPA compiles lumber industry statistics and provides business information services to mills. The association also delivers quality standards, technical and product support services to the industry. – Frank Stewart is product services support manager for the Western Wood Products Association. Reach him via www.wwpa.org. Building-Products.com
WWPA Special Section By David Koenig
Quota marks Manufacturers size up state of softwood import duty conflict U
in the struggle to resolve the softwood lumber trade dispute with Canada, a coalition representing U.S. lumber manufacturers has taken their greviance to court. The day after Thanksgiving, the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations petitioned the U.S. Department of Commerce and the U.S. International Trade Commission to, in their words, “restore the conditions of fair trade in softwood lumber between the U.S. and Canada.” The petition alleges that Canadian provincial governments provide trees to Canadian producers for far below the market value of the timber, allowing Canadian lumber to be sold for less than fair value in the U.S. The petition details the injury suffered by U.S. industry and workers by reason of unfairly-traded Canadian softwood lumber imports. In the immediate aftermath of the expiration of the 2006-2015 U.S.-Canada Softwood Lumber Trade Agreement, Canadian imports surged from 29.5% of U.S. total consumption in the third quarter of 2015 to 33.1% in the fourth quarter and to 34.1% in 2016. In the first eight months of 2016, Canadian imports were over 33% higher than in the same period of 2015. The petition reportedly also illustrated that the imports caused prices to fall, even while U.S. demand was increasing. The coalition is an ad hoc association composed of the U.S. Lumber Coalition, domestic softwood lumber manufacturers, timberland owners, and the carpenters union. The group claims to have the support of U.S. producers that account for nearly 70% of all softwood lumber produced domestically. Afforded the chance to speak confidentially, U.S. and Canadian manufacturers shared a range of opinions and hopes of how they would like to see the dispute resolved: PPING THE ANTE
30
n
The Merchant Magazine
n
January 2017
Western U.S. Manufacturer We filed the petition because Canada has been unwilling to do anything but extend the old agreement, which wasn’t working. In the last agreement, for example, Alberta could ship without limit, but had to pay a duty up to 22% if they exceeded their quota. They regularly paid 22%. It shows you how much of a subsidy they received. The U.S. industry wants an agreement that limits Canadian market share penetration to an agreed-upon percentage. That’s a quota, but it’s a volume quota, a percentage of U.S demand. As the volume of lumber used in the U.S. grows, so does the amount Canada can ship. Once the percentage is reached, any imports would be stopped at the border. If you go back to the 2001 agreement, the day after the deal ended, we filed suit contending subsidy and we filed on the threat of injury. We won on subsidy, but the way U.S. trade law works is, you first have to prove injury. So starting in 2006 we began collecting data, sales data, lost sales, so we would have a solid case around the injury positon. So this time around we feel very comfortable. We’ve never lost on subsidy and are 90% sure we’ll get injury, now that we have data to back it up. We are a little less confident on charges of dumping. We also asked for special circumstances—assuming we win on the preliminary ruling of injury. If we get special circumstances, it makes any tariff 90 days retroactive. We filed (in late November). A preliminary decison is due in early April. Meanwhile, the process marches on, actually two processes—the lawsuit continues and negotiations continue, along two separate tracks. It’s a government-to-government process. Canada has submitted several hybrid proposals. There’s lots going on behind the scenes. We hope for a negotiated agreement. Building-Products.com
Eastern Canadian Manufacturer Despite several disappointing developments, we are trying to remain optimistic. Any time there are discussions, it’s a positive. However, it’s a very stressful, uncertain time. We don’t know how high any quotas will be. Could they be 25% or perhaps, with a new Trump Administration, as high as 45%? We just would like the provinces to maintain their quotas. I know Quebec currently is fighting for an exclusion, which the Americans have never before accepted. We are hoping for stability. In the meantime, we have to focus on what we can control.
Western U.S. Manufacturer From our perspective, the Canadians have quite an advantage timberwise, merely by their federal government selling timber. If our government here did the same, the talk of tariffs would pretty much be a moot point. There are two things we’re concerned about. One, timber availability. We have plenty here in the U.S. We should just turn loose some of it. Two, the exchange rate, the 30% to 40% difference is a huge deal. It seems to be tied to the price of oil. If we could just get the price of oil up, it would make a difference.
live by it. The U.S. landowners will be the ones that see the greatest gains from the agreement, as Canadian export to the U.S. slows, lumber prices will come up, bringing the cost of logs up with them until a balance between is reached. U.S. lumber consumption is far greater that U.S. lumber production, and the economy needs the Canadian imports to remain strong. Whatever the agreement becomes, we will need to find a way to live with it.
Western U.S. Manufacturer We would really like to see a quota limit, as far as a line in the sand, nothing over so many board feet, not just a tariff. They seem to have the ability to just run right through a tariff. I just had a meeting with a railroad today and they stated their Canadian lumber business into the U.S. was up about 34% in 2016. That had a huge impact on U.S. mills. Log costs in Oregon have been extremely high. Oregon has a huge volume of timber, and we should be able to be competitive, but with how our federal government handles land and the Canadian imports, we are not able to create resources to fund our state with its own natural renewable resources.
Western Canadian Manufacturer
Western U.S. Manufacturer with Operations in Western Canada
As a smaller independent producer, we are expecting and preparing for the worst, and hoping for better. The agreement will be focused on and based on the large producers with little to no consideration for the smaller mills. Regardless of what the agreement is, we will have to
We have production facilities on both sides of the border. The reason this is complicated is because of the raw material: logs. Even though the Canadian process is more open and competitive than ever when it comes to logs, Canadian producers still have an advantage over most U.S.
Quality Lumber Sustainable Forests At Bennett Lumber, we take pride in producing quality lumber products and managing sustainable forests for the next generation.
Princeton, ID Clarkston, WA 208-875-1321 www.blpi.com
Jim Vandegrift Sales Manager
Building-Products.com
January 2017
n
The Merchant Magazine
n
31
producers. The Canadian government continues to manage its forests through up and down markets. The price for those logs follows the market up and down, but for the most part, the flow of logs is maintained. Contrast that with the U.S. federal government, which barely manages its forests. This leaves state lands, tribal lands, and private lands for the remaining supply. If a company doesn’t have enough of its own lands to supply its mills, they rely on other sources. In many cases that’s private lands. The issue is the consistency of management. Many of these private landowners are managing for returns. When the market drops, many landowners just wait until the prices return. This puts mills in a very difficult spot, because reducing production raises costs, just when the companies can least afford it. Therefore, there are so few privately held mills left in the U.S. The other main issue with the Softwood Lumber Agreement is currency. That was never factored into prior agreements. Here’s the issue. Today the exchange rate is $1 USD = $1.33 CND and the price for lumber is
$349/MBD U.S. dollars, according to Random Lengths. That means the price of lumber is $465.42/MBF in CND. Compare that to December 2012: Random Lengths Composite Average was $370/MBF USD. The exchange rate was $1 USD = $1 CND. That means that a mill in Canada is doing 25% better today than it was in 2012, while a mill in the U.S. is doing 6% worse. These are not insignificant swings. The impact is much more pronounced when the market drops. No one cares when the prices are high because companies are making money, but when prices are below breakeven in the U.S., Canadian mills can still make money shipping into the same market. If prices were at $270/MBF right now, Canadian mills would be seeing prices at $359/MBF CND. These are the scenarios that must be addressed, because at the end of the day the goal isn’t to put people out of work. When these mills go away, on either side of the border, jobs, communities and families are destroyed. That is what is at stake here. That goes much deeper than shareholder returns.
Southern U.S. Manufacturer Manufacturers in the Southeast spend millions of dollars a year managing, growing, harvesting and replanting an ever-improving crop of pine trees, while employing thousands. Raw material costs for U.S. producers are determined by the natural ebb and flow of the free market, and it is the manufacturer’s responsibility to remain viable regardless of market conditions. By controlling and manipulating the raw material cost and supply, the Canadian government gives its manufacturers an unfair competitive advantage. We are in favor of free trade between borders within the limits of a predetermined and reasonable quota that creates a relatively fair playing field, thus helping to protect our thriving industry and much-needed American jobs.
Western U.S. Remanufacturer
Specializing in Softwood Species with an Emphasis in Western Cedars Circle Sawn • Wire Brushed Split Rail • Timbers • Clear VG Pyroteck • Aged Wood Process Standard & Custom Match Patterns In-House Factory Priming & Staining FSC Chain of Custody SCS-COC-000178
32
n
The Merchant Magazine
n
January 2017
As a manufacturer, the duty will have a negative effect on our business. We will be paying more for our raw material input to create our finished goods, which in turn gives the Canadian remanufacturers an advantage. Due to the duty-free tag on manufactured material from Canada, we will see more Canadian companies manufacturing finished products selling into our market.
Western Canadian Remanufacturer We don’t own any tenure. We are a remanufacturer of western red cedar that buys our timber from the large western Canadian producers. The charge is they receive access to timber at below market value, so in order to even the playing field for U.S. mills, Canadian exporters must pay a duty on any softwood lumber going into the U.S. But some of us don’t own any tenure. We already offer a pretty high-end product, which gets even more expensive when you add a 20% duty. The best case scenario would be an exemption for companies that don’t hold tenure, but the strategy of the (U.S.) Coalition is they don’t want any companies to circumvent the agreement. They want to include as many companies as possible. You could have a species exemption, but that’s unlikely and, if you exempted a particular species, then everyone would want to get into it, further driving up competition. Building-Products.com
A better option might be, if they won’t single out tenure holders, for companies that prove they don’t get any value from any government subsidies to be allowed to pay lower percentage. The U.S. is concerned about imports of SPF framing lumber, 2x4, 2x6, what competes with southern pine. They don’t care about cedar. It’s only about 3% of the market. As a cedar guy, we’d have to pass the cost on to our customers. The last time we went through this, the Department of Commerce temporarily reduced the duty from 27% to 17% for several companies that could prove they received no benefit from subsidies, but it only lasted for a year and a half. And right now the U.S. wants to cause some pain. We are very, very nervous where this is going to end up.
raising their log prices next year, so cedar will be more expensive. But there’s no risk until the end of January. We have a window until January 30 until we have to worry about retroactive countervailing duties or dumping penalties. So right now we are shipping everything we have that’s finished across the border. This year we’ve done more forward business than we’ve ever done, and every year our cedar business is up 20%. Consequently, I’m pretty opti-
mistic for the long term, duty or nonduty. I suspect the American homeowners will be the ones left paying more.
Western U.S. Remanufacturer Because we are a secondary manufacturer, the softwood lumber agreement may have a positive effect on our U.S. customers and may have a negative effect on our Canadian customers. We attempt to be Switzerland at times like this, staying neutral and supporting all of our customers.
Southern U.S. Manufacturer We as a company are unique among southern pine producers. We have never supported the coalition fighting Canadian imports and honestly I don’t even pay much attention to what is currently going on regarding the trade agreement. That being said, we are also somewhat unique in that we are a SYP mill that produces no dimension lumber, so we are less impacted by whatever happens. I do wonder what the Canadian companies who now have so much production in the Southern U.S. feel about the issue.
Western Canadian Manufacturer We are in the cedar business and, in a perfect world, we’d continue the agreement that we have had. But this is not a fair world. There’s going to be some short-term pain. This is a business based on continuity and certainty—staring down at a nightmare scenario and trying to figure out ways to mitigate risk. The problem with a quota system is it’s so political with the mills, between the provinces, over tenure rights, first nation vs. second nation. It gets so complicated. Some of them have already announced they will be Building-Products.com
January 2017
n
The Merchant Magazine
n
33
WWPA Special Section By The Merchant Magazine
Big stud West receiving its first new sawmill in a decade S
1980S, the lumber industry in the western U.S. has steadily shrunk, as hundreds of mills have gone by the wayside. But Sierra Pacific Industries is reversing that trend, bringing on line the West’s first major sawmill in a decade. INCE THE
The massive plant, currently processing test logs, was built from the ground up on Simpson Timber Co.’s longtime site along Shelton, Wa.’s industrial waterfront—which has been home to a lumber mill since the late 1800s. In 2015, Simpson put 270 out
of work when it closed its mill, which SPI has torn down. In its place, SPI has created a 176,000-sq. ft. sawmill, which will use the latest laser technology to size up and cut logs, in addition to a planer, 23,500-sq. ft. shop, 18,000-sq. ft.
MEGA-STUD MILL will produce up to 500 million bd. ft. per year, in lengths to 10 ft.
34
n
The Merchant Magazine
n
January 2017
Building-Products.com
boiler and fuel house, and 4,200-sq. ft. office. An on-site metal fabrication shop will provide equipment and machinery for SPI’s four facilities in Washington. The plant will be strictly a stud mill, meaning a reduced product line, but plenty of it. Dual lines will crank out up to 500 million bd. ft. annually of Douglas fir and hemlock 2x4s, 2x6s, and a small amount of 4x4s, in 8 to 10 ft. lengths. Production is expected to begin in February or March, under mill manager Scott North. By the time it ramps up and a second shift is added, the mill will employ about 200. “It will be one of the largest volume stud mills in North America,” said Lisa Perry, SPI’s community relations manager for Washington. “It’s twice as big as our other stud mill, in Centralia, and features updated technology.” Although SPI is among North America’s largest landowner, with the vast majority of its holdings in California, the new facility will draw most of its timber from smaller private landowners and public lands in the Pacific Northwest. “We’ve enjoyed expanding into
SIERRA PACIFIC built the mill from the ground up, after razing Simpson Timber’s longtime operations in downtown Shelton, Wa.
Washington, where the environmental standards are as high as in California, and it’s an area that embraces the legacy of the timber industry,” Perry noted. “The city worked tirelessly to get this mill going.” Although SPI remains the leading
producer and timberland owner in California, it has shuttered several operations in the Golden State, while acquiring forestland in Washington and adding three other mills since 2001—in Aberdeen, Burlington and Centralia.
We’re growing Colville, WA – Usk, WA – Midway, BC – Eagar, AZ
Building-Products.com
January 2017
n
The Merchant Magazine
n
35
WWPA Special Section By Western Wood Products Association
WESTERN WOOD Products Association is returning to downtown Portland, Or., for its 2017 annual meeting.
Portland to host annual industry conference T
HE LARGEST GATHERING of western lumber producers will return to Portland, Or., this spring with the Western Wood Products Association’s 2017 annual meet-
Respecting the forest, honoring the past, building the future. A nation’s pride you can build on.
Manufacturers of 6 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
(509) 874-1163
Yakama Forest Products
3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162
www.yakama-forest.com
36
n
The Merchant Magazine
n
January 2017
ing. The meeting brings together leading manufacturers to discuss industry issues and hear the latest forecasts for the coming year. The conference will be held March 5-7 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. Member companies also encourage key customers to attend the meeting. The annual meeting will kick off with the industry welcome reception on Sunday March 5. Monday morning sessions get underway with the industry forecast breakfast with the association’s outlook for 2017 lumber markets, before getting down to business with WWPA standing committee meetings, followed by the industry luncheon. The afternoon features 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 fees are $425 for WWPA members, $475 for associate members and $575 for all others. Fees for registrations received after Feb. 5 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 $150 each. Registration and hotel reservations for the meeting can now be completed online, using links on WWPA’s site, www.wwpa.org, where you can also find more information on the event. Annual meeting hotel room blocks sell out quickly and to avoid disappointment, make your reservations early. The reservation deadline to take advantage of the special WWPA rate is Feb. 2. Those needing overnight accommodations are urged to make hotel reservations early. Building-Products.com
Parr Buys Spokane Lumberyard Seventy-year-old Country Homes Building Supply, Spokane, Wa., has been acquired by Parr Lumber, Hillsboro, Or. It becomes Parr’s 26th LBM location and second in the Spokane Valley. “Our two companies have enjoyed a mutual respect for one another, sharing the same values and dedication to our customers,” said Parr CEO Doug Wirges. “We look forward to working with the CHS team and continuing the tradition of exemplary service customers have come to expect.”
Weyco Sells Seedling Nursery PRT USA Inc., Victoria, B.C., has agreed to purchase Weyerhaeuser’s forest seedling nursery in Cottage Grove, Or. The transaction is due to be final early this year, once existing crops are harvested and shipped. First established as a container seedling nursery by Georgia-Pacific in 1972, the Cottage Grove operation was expanded by Plum Creek Timber in 2004 when it bought G-P’s timberlands and again in 2004. Weyerhaeuser took over when it acquired Plum Creek in 2016. Operations will carry on under PRT ownership under the name PRT Cottage Grove starting with the 2017 sowing season. With its network of nurseries throughout the U.S. and Canada, PRT is the largest producer of container-grown forest seedlings in North America, currently growing more than 180 million seedlings annually.
38
n
The Merchant Magazine
n
January 2017
LIGHT PARADE: Orofino Builders Supply, Orofino, Id., took first place Dec. 2 for its entry in the annual Orofino Christmas Festival OldFashioned Light Parade, sponsored by the local Chamber of Commerce.
Inteplast Rescues Gossen Inteplast Group has purchased fellow PVC building products manufacturer Gossen Corp., Glendale, Wi., for $5.5 million at a bankruptcy auction. Gossen, which was founded in 1928, filed for bankruptcy in November, closing its facilities in Glendale and Cartersville, Ga. Inteplast expected to have workers back on the job before the end of the year. Inteplast president Dr. John Young said that the acquistion complements the group’s World-Pak division, which also produces PVC decking, moulding and trim.
Building-Products.com
Join top industryy decision makers for insigghts to grow your business, your knowledge and your network.
MARCH 12-14
Westin La Paloma Resort & Spa Tucson, ucson AZ
Confirmed presenters and sessions includee: • Jim Cline, President and CEO of Trrex Company • Dick Molpus, President of The Molpus Woodlands Group • Claudia St. John, Affinity HR Group • “Legends of Lumber” Panel Leaders from across the forest products industry – including retailers buying groups retailers, groups, jobbers and otherrs across the supply chain – are inviteed to attend this NAWLA eevent!
Registration is Open! To learn more and register, visit www.nawla.org/leeadershipsummit
MOVERS & Shakers PC Lauinger has been named sales mgr. of Durango Wood Co. (formerly Las Animas Wood Products), Durango, Co. Randy Whetzell, general mgr., Builders FirstSource (ProBuild), Montrose, Co., is now also overseeing the Grand Junction, Co., location. Anthony Flagor, Boise Cascade, Medford, Or., was promoted to production mgr. for the western Oregon region, responsible for five facilities. Seth Hokit is the new sales mgr. for Sierra Forest Products, Terra Bella, Ca., replacing retiring Doug Hanson. Spencer Ardt has been promoted to lumber sales mgr for Jerry’s Home Improvement Center, Springfield, Or. Mike Zojonc, ex-Boise Cascade, is now general mgr. of Blanca Forestry Products, Blanca, Co. Mikhail Mikhailov, ex-Home Depot, has been appointed field sales rep in the Seattle, Wa., area for FastenMaster.
Jean-Michel Broschart, ex-Tolko, has joined Interfor, Burnaby, B.C., as general mgr.-marketing & sales of western commodity lumber. Scott Morgan, TAMKO’s residential/ commercial territory mgr. in Phoenix, Az., was recognized as a Lifetime Member by the Arizona Roofing Contractors Association. Rob Kriger was promoted to planer production supervisor at Stimson Lumber Co., Tillamook, Or. Ben Battaglia has been promoted to VP-sales for Ace Hardware, Oak Brook, Il. Tim Prince has joined the interior finishing team at Sika Corp., Lyndhurst, N.J., as sales representative for Colorado. Charles W. Roady, F.H. Stoltze Land & Lumber, Bonners Ferry, Id., has been appointed by Agriculture Secretary Tom Vilsack to a threeyear term representing the U.S. West on the Softwood Lumber Board. Furman Brodie, Charles Ingram Lumber Co., Florence, S.C., and Danny White, T.R. Miller Mill, Brewton, Al., will rep-
resent the South; Alden Robbins, Robbins Lumber, Searsmont, Me., the Northeast and Lake States; Don Kayne, Canfor, Vancouver, B.C, western Canada; and Francisco Figueroa, Arauco, Santiago, Chile, all other importing countries. Joy Ryder is testing the new vehicle fleet after hours at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Tidelands Mill to Become Warehouse Campus Interfor, Vancouver, B.C., has sold the former Simpson Lumber Co. Tideflats sawmill in Tacoma, Wa., to Industrial Property Trust, Denver, Co., which will convert the 58-acre site into a logistics center. When it opens next year, IPT Logistics Center will feature two industrial buildings totaling 1.1 million sq. ft., which can be broken into spaces as small as 60,000 sq. ft. The mill, which cost IPT $32.4 million, was among four Simpson operations Interfor purchased in 2015 and, though it was a relatively modern facility, Interfor operated it for just two months before shutting it down.
G
W TIN NO IBU R ST
DI
Discover YOUR NEXT FAVORITE SIDING PRODUCT Introducing
Trespa Pura NFC® Cladding (Natural Fiber Core), a revolutionary development in home exterior cladding: • Highly weather resistant • Requires minimal maintenance • Installs quickly and easily • 10-year guarantee • Range of natural Wood Decors and Uni Colours
Love home, live Trespa 877.533.7695 • www.jordanredwood.com 40
n
The Merchant Magazine
n
January 2017
Building-Products.com
Blue Book Introduces Predictive Credit Scores Subscribers to Lumber Blue Book now have access to Blue Book Scores, a numeric rating that predicts the likelihood a company will experience a negative credit event within the next 12 months. “We collect and analyze over $1 billion in industry A/R data each month,” explained Mark Erickson Sr., VP for Blue Book Services. “This data is then fed into a proprietary statistical model, tested and refined during the past year, to ensure the highest level of quality and accuracy.” The result is a statistically valid, empirically derived credit score that can be used in conjunction with traditional Blue Book ratings and reports to help make informed credit decisions. Presently, over 9,000 lumber companies have been scored.
APP Watch
App: Masonite Front Door App Produced by: MASONITE INTERNATIONAL Price: Free Platforms: iOS A new app allows dealers, builders, remodelers and consumers to view available glass options for entry doors while on the go. The Masonite Front Door App provides a tool to showcase different glass designs on an iPad or iPhone, to help consumers choose a glass that complements other design elements in their home. – Download from iTunes App Store
Building-Products.com
January 2017
n
The Merchant Magazine
n
41
USS ARIZONA Memorial renovation project in Hawaii’s Pearl Harbor utilized Feeney, Inc.’s DesignRail aluminum railings with CableRail
stainless steel cable infill. Due to the salt water exposure, Feeney also provided special isolation bushings made from engineered polymers
to line the cable holes in the posts and eliminate direct contact of the stainless cable and aluminum post material.
Ace Adding In-Store Sears
Thanks to our customers and vendors as we begin our 32nd year • Redwood & Plastic Lattice • Dupont Tyvek • Roseburg DuraTemp • TruWood Siding & Trim • FRP • Fir, SYP & Radiata Pine Plywood
• Particleboard, MDF & Hardboard • OSB • Dry Dimension Lumber • Pine Boards • Industrial Lumber • Import Plywood • Salvage & Surplus
4685 BROOKHOLLOW CIRCLE, RIVERSIDE CA 92509
877-369-2327 • 951-727-1767
42
n
The Merchant Magazine
n
January 2017
A new Sears Hometown opened Dec. 9 inside Heritage Ace Hardware, Santa Paula, Ca., capping a year-end flurry of openings among the independently owned Hometown franchises. This past October, six Sears Hometown stores in California— Clearlake, Coachella, Fort Bragg, Red Bluff, Selma and Yreka—were all revamped and had grand openings Oct. 14-15. In November, a Sears Hometown store opened in Pocatello, Id., and a repair and distribution center was added in Reno, Nv.
Tenon Sells American Units Blue Wolf Capital Partners bought New Zealand-based Tenon Holdings’ North American operating business. It will operate as Novo Building Products, under Tom B. Highley.
Building-Products.com
Demand Builds for Synthetic Roofing Increased homeowner interest in cool roofs and authentic-looking slate and shake roofing products will continue to spur the growth of polymer roofing products in 2017. “We set new sales records for sales in California in 2016 as people prepared for the launch of Title 24 requirements in 2017,” says Ray Rosewall, president and CEO of DaVinci Roofscapes. “West Coast residents are clamoring for energy-efficient roofing products.” Last year, the company launched four new cool family colors for its EcoBlend polymer roofing. Each option was approved by the Cool Roof Rating Council to reflect sunlight and heat away from a home or commercial structure, helping the building or home stay cooler in the summer and helping to lower energy costs. The new color blends all meet Title 24 requirements for California. “We expect this trend will accelerate in 2017 as people across the country learn the value of energy-efficient synthetic roofing products,” Rosewall says. “We’ve heard from distributors, roofers and builders these polymer
products are becoming more preferred to natural roofing materials. People desire the expected look of shake and slate, but they truly want the benefits that a manmade product offers.”
DaVinci offers seven different lines of simulated slate and shake roofing in 50 standard colors and a multitude of blends. Slate Gray, Tahoe and Mountain blends remained favorites in 2016 for both residential and commercial. “More than 80% of our product sales are driven by reroofing projects,” says Rosewall. “We often see people replacing their rotting real wood shake tiles or failing asphalt shingles with our product.”
Roof Underlay Market Rises
COOL COLORS are hot in polymer roofing. (Photo by DaVinci Roofscapes)
U.S. demand for roofing underlays is forecast to rise 3.4% a year to 214.5 million squares in 2020, boosted by rebounding residential construction, according to a new Freedonia Group study. Strong growth particularly in single-family starts will spur the use of underlays on steep-slope roofs. Nonetheless, residential reroofing will remain by far the leading consumer. Through 2020, better-performing synthetics will make bigger gains in demand than asphaltic underlays, overtaking them as the most-used product.
Santa Fe Springs, Ca • www.hufflumber.net
(800) 347-4833 EWP • Big Timbers/Long Lengths •
DISTRESSED WOOD
• D-Blaze® FRTW
Wholesale distributor of a wide range of Distressed Timbers, including
WCLIB Graded Distressed and Hand Hewn Beams Custom Distressed & Hand Hewn work on any size, length or species of lumber.
We are willing to work with customers to achieve their desired custom look
Samples are available upon requests.
Building-Products.com
the finest timbers available, delivered to customers accurately, honestly & on time.
January 2017
n
The Merchant Magazine
n
43
NEW Products
Expressive New Colors TAMKO Building Products has added several colors for its new Envision Expression line of capped composite decking boards: Harbor Grey, Caribou Brown, Canyon Ridge and Woodland Bark. The four color options were chosen after TAMKO reached out to its customers in various business segments for feedback on preferences.
n TAMKO.COM
(800) 641-4691
The Right Connection Simpson Strong-Tie is now offering an innovative hanger that’s easy and intuitive to use for connecting rafters to hip/valley beams in roof framing. Its simple design of the field-adjustable jack rafter hanger makes installation simple and quick, resulting in lower labor costs. The hanger features a versatile hinged seat that easily adjusts to conventional rafter slopes. The gripper seat frees up a hand for the installer at the time of attachment.
n STRONG-TIE.COM (800) 999-5099
888-807-2580 Bend, OR
www.pelicanbayfp.com DISTRIBUTION LOCATIONS Colton / Fontana / Modesto / Salinas / Stockton, CA PRODUCTS & SERVICES Framing Lumber / Pallet Stock / Industrial Lumber / Softwoods Hardwoods / Cedar / Fencing / Decking / Redwood Custom Cut Stock / Treated Lumber / Tile Battens 3-Hole & Slotted Vents / Custom Cutting / Remanufacturing Heat Treating / Fire & CCA Treating
“Focused on the future with respect for tradition”
44
n
The Merchant Magazine
n
January 2017
Tunes on the Job & on the Go Milwaukee Tool’s Wireless Jobsite Speaker provides unmatched premium quality sound and jobsite durability. Designed with six full-range speakers, the device is unmatched in clarity of sound, from booming bass to sharp high frequencies, which reportedly make it the industry’s loudest and clearest sound system on or off the jobsite.
n MILWAUKEETOOL.COM (800) 729-3878
Building-Products.com
Insulation for the Pros JetSpray Thermal Insulation System by Knauf is a high-performance, spray-on glass mineral wool designed for professionals looking to provide premium performance insulation solutions. The product can be applied in a net-less, side wall application—creating a custom insulation solution for projects ranging from residential and multi-family dwellings to modular or light commercial structures. Other benefits include fast and convenient installation, highly precise application, lightweight packaging, and easy setup and cleanup.
Sto Corp. has introduced StoGuard Gold Coat TA, the trowel-applied version of Gold Coat. The vaporpermeable air barrier membrane is used in StoTherm ci systems. Gold Coat TA is troweled directly onto vertical above-grade wall sheathing and masonry. The coating also acts as a waterproof air barrier when combined with StoGuard joint and rough opening treatment.
n JETSPRAY.KNAUFINSULATION.US
n STOCORP.COM
A New Gold Coat
(513) 539-4444
(800) 221-2397
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
909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – fwl-fwp@pacbell.net
www.fontanawholesalelumber.com
J&L HEAT TREATING SERVICE Fast & Courteous Service
— Centrally located between I-5 & 99 in Stockton, CA — Call John at (209) Building-Products.com
595-2141 — j.fauria@sbcglobal.net January 2017
n
The Merchant Magazine
n
45
Strong Barriers Perm-A-Barrier by GCP is a self-adhering, self-sealing waterproofing membrane for air and vapor barrier applications. When combined with a structur-
al substrate, it produces a nearimpermeable air, vapor and water barrier on concrete, masonry, gypsum and wood walls.
n GCPAT.COM
(617) 876-1400
* ROUGH TIMBERS * UTILITY POLES * PRESSURE TREATED LUMBER FIRE RETARDANT TREATED * LUMBER AND PLYWOOD
Impactful Wrenches Porter Cable launched its new 20V MAX Lithium Ion 1/2-inch Hog Ring Impact Wrench, an extension of the 20V Lithium Ion Get Linked system of tools. Engineered with residential contractors and mechanics in mind, the cordless tool features a variable speed trigger, plus a 1/2inch hog ring anvil, which provides 330 ft. lbs. of max torque for construction applications, lug nut removal, and quick, easy socket changes.
n PORTERCABLE.COM (866) 375-6287
Lightweight Lighting Aleddra's new CF-LED Ulamp is a patent-pending LED lamp that is stylish, lightweight and economical. The lamp uses a glass tube, which provides better heat dissipation than that of the plastic tube used with the LED corn light, thus resulting a longer lifetime and a better ROI. The lamp is certified and has a five-year warranty.
n ALEDDRA.COM (425) 430-4555
46
n
The Merchant Magazine
n
January 2017
Building-Products.com
Portland wholesalers’ holiday PORTLAND WHOLESALE CHRISTMAS Photos by The Merchant Magazine
PORTLAND Wholesale Lumber Association chair [1] David McNabb (left) and speaker Mac Wilkins (U.S. Olympic gold medalist) crowned Mark Mitchell (right) Lumberman of the Year at the group’s annual Christmas luncheon. [2] Jay Hart, Dan Weaver. [3] Chelsea Brown, Kalayna Crook, Natalie Heacock. [4] Chris Knowles, Mike Foster, Scott Cranfill. [5] David Stallcop, Andy Jones. [6] Miguel Guiterrez, Jerry Farley. [7] Allan Hurd, Building-Products.com
Mike Jarman. [8] Norm Persons, Eric Ortiz. [9] Raymond Luther, Mark Grube. [10] Denny O’Sullivan, Greg Thelen. [11] Pat Lynch, Devin Stuart, Mark McLean, Steve Killgore. [12] Brett & Karen Slaughter. [13] Ryan Williams, Aaron Linerud. [14] John Murphy, Frank Forward. [15] Parker Wildeboer, Humphry Wildeboer. [16] Sean Coughlin, Dave Anderson. [17] Jeremy Fischer, Heidi Meany. (More photos on next two pages) January 2017
n
The Merchant Magazine
n
47
PORTLAND WHOLESALE CHRISTMAS Photos by The Merchant Magazine
PORTLAND WHOLESALERS (continued from previous page) celebrated at its annual Christmas luncheon Dec. 1 at the Doubletree, Portland, Or. [18] Perry Schlitt, Jim Adams. [19] Don Devisser, Todd Foster. [20] Tom Gennarelli, JT Taylor. [21] Rick Yonke, Charley McGovern. [22]
48
n
The Merchant Magazine
n
January 2017
Josh Hanson, Joe Raulerson. [23] Mike Zumwalt, Joe Honochick. [24] Brent Lawrence, Jerry Lawson. [25] Jeff Hoggard, Mason Virnig. [26] Stan McGehee, Gary Pittman, Mike McCollum. [27] Christina Lawrence, Neil Osborn. [28] Mike Rowan, Matt Keyser. [29] John Newell, Robert Steen, John McDowell. [30] Paul Quandt, Darin Allen. [31] Mark Swinth, Pat O’Donnell. [32] Chuck Casey, Mike Boone. [33] Steve Snyder, Matt Kolar. [34] Susan Falley, Paul Cheatham. [35] Lumberman of the Year Mark Mitchell, Bryan Borovec. [36] Charles Gale, Pipiet Larasatie, Eric Hansen. [37] Wayne Holm, Rod Lucas, Kirk Pothoff. (More photos on next page) Building-Products.com
PORTLAND WHOLESALE CHRISTMAS Photos by The Merchant Magazine
SPONSORS helped make the annual wholesalers event possible (cont.): [38] Derrick Coder, Bob Maeda, Scott Elston. [39] Steve Cole, Reid Schooler. [40] Kaycee Hallstrom, Terri Adair, Regina Smith. [41] Ashley Harris, Julie Parsons, Dan Stearns, Josiah Dorr, Ashley Kirk. [42] Mark
Porter, Jerry Gustafson. [43] Rodger Seid, Gunnar Brinck. [44] Gary Newman, Paul Donahue. [45] Grant Phillips, Dan Weaver. [46] Wayne Giesy, David McNabb. [47] Edy Schaller, Marshall Lauch. [48] Greg Thelen, Dave Smith. [49] Tom Reynolds, Brad Meyers.
Superior Service, Products & Support 100% of the Time
Distributed By
P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288
(541) 535-3465 • www.normandist.com Building-Products.com
January 2017
n
The Merchant Magazine
n
49
2ND GROWTH YEAR-ENDER Photos by The Merchant Magazine
WEST COAST Lumber & Building Material Dealers Association’s 2nd Growth group gathered to celebrate the holidays at Embassy Suites, Brea, Ca. Along with its annual toy drive, the group enjoyed Casino Night to close out another successful year for the industry. [1] Bart McKee, Rex Klopfer, Bill Gaita, Mark Huff. [2] Damien Simpson, Danny Sosa. [3] Jack Butler, Danny Andrea. [4] Brian Hurdle, Jeff Donahoo, Al Reid, Steve Brown, Doug Willis. [5] Grant Pearsall, Daniel Hines, Joe Allotta. [6] Ryan Lauterborn, Aaron Castaneda, Jason Fellows. [7] Elena
50
n
The Merchant Magazine
n
January 2017
Estrada, Lizzie Owen. [8] Glenda DeFrange, Maritza Mejia. [9] Keith Hitchcock, Joe Morin, Victoria Foucault. [10] Rick Davis, Ellice Herman. [11] Karen McKay, Jason Womack. [12] Karen Lewis, Scott Whitman. [13] Natalie & Chris Johnson. [14] Gerry Perez, Jean Henning. [15] Alex Uniack, Vicki Hale. [16] Jesse Jackson, Larry Christensen. [17] Karen Lewis, Bill Sullivan. [18] Joey Thompson, Endy Flores, Jacqueline Balazzolo, Phil Ho, Stephanie Barrios, Ramero Roman. (More photos on next page) Building-Products.com
2ND GROWTH Photos by The Merchant
TOY DRIVE was a highlight of 2nd Growth’s recent holiday meeting (continued from previous page). [19] Mark Ganahl. [20] Mark Davis, Chris Huntington. [21] Steve Schroeder, Pete Meichtry. [22] Megan
Thompson. [23] Terry Rasmussen, Fia Faumuina, Troy Huff. [24] Tony Campbell, Jennifer Burford, Christian Hereld. [25] Betsy Bendix, Charlene Valine.
ASSOCIATION Update Mountain States Lumber & Building Material Dealers Association is reminding members to save the date for its annual expo Feb. 16 at the Denver Mart, Denver, Co. A chili cook-off is planned among participating vendors, and dealers in attendance will be eligible for a grand prize giveaway. Western Building Material Association will kick off the new year with a series of educational programs led by Ken Wilbanks at its Kincaid Learning Center, Olympia, Wa. “Executive Imperatives” on Jan. 10 will remind LBM professionals of the six critical cornerstones of excellence in leadership: creating reality, systems that work, recruiting and retaining talent, modeling optimum technique, coaching with power and celebrating the success. The following day, “A Targeted Growth Essentials” workshop will focus participants on attitudes, skills, actions and overarching strategies for a successful year. And on Jan. 12, a “Managing Special Order Processing” class will help any dealer who recognizes that underachievement in gross margins is hurting their business. The workshop will bring the totality of the special order opportunity into the spotlight educating participants into a margin producing mindset, measurements and benchmarks for targeting optimum Building-Products.com
National Association of Wholesaler-Distributors’ executive summit will take place Jan. 31-Feb. 2 at the Fairmont, Washington, D.C. Themed “Navigating the Seas of Disruption,” it will cover changes in technology, the economy, customer needs, demographics, and margins.
gross margin achievement in every special order, detailed checklists for all costs associated with a special order and receiving best practices that stop losses from mishandling.
PARR
LUMBER COMPANY 14023 Ramona • PO Box 898 Chino, CA 91708
www.parrlumberchino.com (909) 627-0953 Fax 909-591-9132
40th
Anniversary
• Plywood/OSB
• Hardwood Panels
• Plyforms
• Dimension Softwoods
• Composites
• Dimension Hardwoods
• Melamines/Vinyls
• Pine & Fir Boards
Michael Parrella – x15 • Vince Galloway – x19 Janet Pimentel – x23
• Chris Hexberg – x22
Pete Ulloa – x18
• Bert McKee – x16
Nestor Pimentel – x31 • Joe McCarron – x21 George Parden – x26
January 2017
n
The Merchant Magazine
n
51
IN Memoriam Tracy Trogden, 52, sales manager for Hardel Mutual Plywood Corp., Chehalis, Wa., died Dec. 12. She joined Hardel in 1986, starting out as a receptionist. Gordon Alan Roby, 68, co-owner of Mokelumne River Forest Products, Lodi, Ca., died Nov. 14. He and partner John Diederich operated the wholesale business for more than 28 years. Robert Burns Jensen, 89, former CEO of California Cedar Products, Stockton, Ca., passed away Nov. 24 in Yountville, Ca. After serving in the U.S. Navy during World War II, he earned a degree in business administration from U.C. Berkeley. In 1952, he and a partner started a pole and piling business in Ukiah, Ca. He later joined logging/ milling equipment firm Fred E. Barnett Co., Ukiah, starting in sales, but working up to manager. In 1963, he became log buyer for Cooper’s Mil, Mount Shasta, Ca., becoming mill manager when the company was bought by P&M Lumber Products. In 1974 he transferred to Stockton, becoming CEO of its mills in Oregon and California,
including Cal Cedar. He left in 1981 to purchased a sawmill in Trinity County, Ca., and operated it as Jensen Lumber Co. He ended his career in sales with Paulsen Wire Rope Co., San Francisco, Ca. In 1974, he was president of the Sierra Cascade Logging Conference. Michael Hugh McLaughlin, 56, West Coast sales manager for Timberline Forest Products, Sherwood, Or., died of cancer Nov. 25. After graduating the University of Oregon in 1983, he started his career as a lumber broker, specializing in the green Douglas fir market. Jerry LeRoy Bramwell, 77, former western forest products executive, passed away Nov. 11 in Medford, Or. After serving in the U.S. Army and receiving his master’s degree in business administration from U.C.Berkeley in 1967, he began his career with Fibreboard Corp. During his 41 years in the industry, he also worked for Louisiana Pacific, Timber Products, and U.S. Forest Industries, before retiring as president of Medford Corp. in 2008. James E. “Spike” Bruggeman Jr., 61, retired operations manager for South Coast Lumber, Brookings, Or., died Nov. 21 while fishing on
CLASSIFIED Marketplace Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type. Questions? Call (714) 486-2735. Deadline: 18th of previous month. Send ad to david@building-products.com or Fax 714-486-2745. Make checks payable to 526 Media Group.
HELP WANTED
HELP WANTED
LUMBER CARRIERS from Berkot
• Several models available • Balanced for ease of handling • May be modified to your specifications See our full product line at www.BerkotMfg.com
BERKOT MFG. CO., INC.
12350 Montague St. Unit F, Pacoima, CA 91331 • Phone (818) 272-2000 Manufactured in the U.S. since 1954
52
n
The Merchant Magazine
n
January 2017
Oregon’s Lost Creek. He and a companion were forced to jump into the chilly waters when their aluminum skiff lodged on rocks and began to overturn. The other man swam safely to shore, then with assistance pulled Bruggeman from the waters, but he could not be revived. He began his career with Roseburg Forest Products after graduating from high school in 1973, working on and off to pay for college. After graduating from the University of Oregon in 1980, he joined RFP full-time, helping to run their plywood plants. In 1996, he was hired by South Coast Lumber, as operations manager for its plywood and LVL mills. In December 2015, he retired to the log cabin he’d built along the Umpqua River. Marian Hoyt Nelson, 88, secondgeneration co-owner of Hoyts Ace Hardware, Rancho Cucamonga, Ca., died Nov. 26. Her father, Sherman Hoyt, opened S.M. Hoyt Lumber Co. 90 years ago, and it is now run by her and is still run by her children. A. Earl Stelle, 88, longtime Oregon lumber trader, died Nov. 2. A star football player for the University of Oregon, he was drafted by the Los Angeles Rams in 1951—as well as by the U.S. Navy. After the service, he played one year with the Rams before before entering the lumber business. He worked in lumber mills in Coos Bay and Westfir, Or., before becoming a broker in Rock Creek, Medford and finally Eugene. Darrel Sloan, 54, HR manager at Setzer Forest Products, Oroville, Ca., died Dec. 10. He joined Setzer 34 years ago, after serving in the Army. Robert J. Hoyle Jr., 95, former wood scientist for Potlach Corp., Lewiston, Id., died Oct. 30. A graduate of Cornell University and Army lieutenant during World War II, he obtained his master’s degree at the New York State College of Forestry in 1951, then joined the university’s staff as an assistant professor of wood products engineering. In 1958, he joined Potlatch’s wood products research department, where he developed a system for machinegrading lumber that became widely used around the world. In 1969, he became a professor of civil engineering at Washington State University in Pullman, retiring in 1985. Building-Products.com
DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Western Building Material Association – Jan. 10-11, leadership workshop, Portland, Or.; (360) 943- 3054; www.wbma.org International Builders Show – Jan. 10-12, Orange County Convention Center, Orlando, Fl.; www.buildersshow.com. Guardian Building Products– Jan. 12-15, dealers show, Walt Disney World Swan and Dolphin Resorts, Orlando, Fl.; (800) 569-4262; www.guardianbp.com. Western Pallet Association – Jan. 13-17, annual meeting, Rancho Las Palmas Resort, Rancho Mirage, Ca.; (360) 335-0208; www.westernpallet.org. Do it Best Corp. – Jan. 15-16, winter conference, Orlando, Fl.; (260) 748-5300; www.doitbestcorp. Surfaces – Jan. 17-20, Mandalay Bay Convention Center, Las Vegas, Nv.; (972) 536-6358; www.surfaces.com. Western Building Material Association – Jan. 18-19, building material marketing course, Olympia, Wa.; (360) 943-3054; www.wbma.org Western Forestry & Conservation Assn. – Jan. 19, timberland conference, Vancouver, Wa.; www.westernforestry.org. National Kitchen & Bath Association – Jan. 19-21, annual show, Orange County Convention Center, Orlando, Fl.; (800) 843-6522; www.nkba.org.
ADVERTISERS Index AZEK [www.azek.com]
7
Bear Forest Products [www.bearfp.com]
42
Bennett Lumber [www.blpi.com]
31
CMPC [www.cmpc.cl]
25
Collins [www.collinsco.com]
13
Columbia Vista [www.columbiavistacorp.com]
29
CT Darnell Construction [www.ct-darnell.com]
22
Fontana Wholesale Lumber [fontanawholesalelumber.com] 45 Grabber [www.grabberman.com]
38
Huff Lumber Co. [www.hufflumber.net]
43
International Beams [www.internationalbeams.com]
3
J&L Heat Treating Service
45
Jones Wholesale Lumber [www.joneswholesale.com]
24
Keller Lumber Co. [www.kellerlumbercompany.com]
46
Sacramento Hoo-Hoo Club– Jan 24, concat, Club Pheasant, Sacramento, Ca.; (323) 559-1958; jtaylor@taigabuilding.com.
Kop-Coat [www.kop-coat.com]
Black Bart Hoo-Hoo Club – Jan. 25, industry night, Broiler Steakhouse, Ukiah, Ca.; www.blackbarthoohoo181.org.
Lee Roy Jordan Lumber Co. [www.jordanredwood.com]
40
Humboldt Hoo-Hoo Club – Jan. 26, annual crab feed, Eureka Elks Club, Eureka, Ca.; (707) 601-9128.
Maze Nails [www.mazenails.com]
8
Norbord [www.norbord.com]
5
Norman Distribution Inc. [www.normandist.com]
49
North American Wholesale Lumber Assn. [www.nawla.org]
39
Orgill [www.orgill.com]
19
Parr Lumber [www.parrlumberchino.com]
51
Pelican Bay Forest Products [www.pelicanbayfp.com]
44
Potlatch Corp. [www.potlatchcorp.com]
33
American Fence Association – Feb. 1-5, FenceTech/DeckTech expos, Music City Center, Nashville, Tn.; (800) 764-2488; www.americanfenceassociation.com. Budma 2016 – Feb. 7-10, International Construction & Architecture Fair, Poznan, Poland; (317) 293-0406; www.budma.com. Northern Utah Home Show – Feb. 10-11, Davis Convention Center, Layton, Ut.; (888) 433-3976; www.acshomeshow.com. Colorado Springs Home & Landscape Expo – Feb. 10-12, NorrisPenrose Event Center, Colorado Springs, Co.; (800) 374-6463; www.homeshowcenter.com. San Jose Home Show – Feb. 10-12, San Jose McEnery Convention Center, San Jose, Ca.; (888) 433-3976; www.acshomeshow.com.
Roseburg Forest Products [www.roseburg.com]
Cover III
Cover IV
Sacramento Hoo-Hoo Club – Feb. 11, Valentines dinner & dance, Delta King Restaurant & Hotel, Sacramento, Ca.; (323) 559-1958; jtaylor@taigabuilding.com.
Simpson Strong-Tie [www.strongtie.com]
Mountain States Lumber & Building Material Dealers Association – Feb. 16, products expo, Denver Mart, Denver, Co.; (303) 7930859; www.mslbmda.org.
Snider Industries [www.sniderindustries.com]
42
Swanson Group [www.swansongroupinc.com]
23
Batibouw – Feb. 16-17, International Building Fair, Brussels, Belgium; www.batibouw.be/emn.
Cover I
Siskiyou Forest Products [www.siskiyouforestproducts.com] 41
Unity Forest Products [www.unityforest.com]
32
Orgill Inc. – Feb. 16-18, dealer market, Ernest N. Morial Convention Center, New Orleans, La.; (800) 347-2860; www.orgill.com.
Universal Forest Products [www.ufpi.com]
37
True Value Spring Reunion Market – Feb. 17-19, Anaheim, Ca.; (305) 852-6126; www.truevalue.com.
Utah Wood Preserving [www.utahtreatedwood.com]
46
Vaagen Bros. Lumber Inc. [www.vaagenbros.com]
35
Versatex [www.versatex.com]
21
North American Wholesale Lumber Association – Feb. 21, regional meeting, Riverplace-Kimpton Hotel, Portland, Or.; (312) 321-5133; www.nawla.org. Oregon Logging Conference – Feb. 23-25, Lane County Convention Center & Fairgrounds, Eugene, Or.; (541) 682-4292; www.oregonloggingconference.com.
Building-Products.com
Viance [www.treatedwood.com]
Cover II
Yakama Forest Products [www.yakama-forest.com] January 2017
n
The Merchant Magazine
36 n
53
FLASHBack 55 Years Ago This Month
In the fall of 1961, President John F. Kennedy advised the nation to consider building fallout shelters to guard against a nuclear attack—and the lumber industry quickly responded, according to the January 1962 issue of The California Lumber Merchant, aka The Merchant Magazine. The Douglas Fir Plywood Association, forerunner of the APA, in cooperation with federal authorities developed a series of practical, economical fallout shelters, with some of the designs simple enough for DIY construction. Plans for the three different models—underground, in basement, or above ground—could provide “a valuable sales aid for building supply houses planning to offer materials or panelized shelters.” Each resulted in an 8-foot-by-8-foot box assembled from pre-framed lumber and plywood. The material costs would run from about $250 for the least expensive basement model to $800-$900 for the underground. Contractors would charge from $400 up to $1,500 for an underground shelter complete with ventilating system. DFPA expected the basement model to be the most popular, providing at least five times the protection from
FIFTY-FIVE years ago on the cover of The California Merchant, Rockport Redwood Co. marketed old growth redwood products from its Northern California timberlands. Those forests were aquired by Georgia-Pacific in 1967, spun off as part of Louisiana-Pacific in 1973, and since 1998 have been providing wood for the Mendocino Redwood Co.
54
n
The Merchant Magazine
n
January 2017
USING PLANS available from their local lumber dealer, contractors could build their own fallout shelters of lumber and plywood, providing 64 sq. ft. of living space—room for at least six persons.
a nuclear blast as that of an ordinary below-grade basement. The underground model, however, provided “protection from even the heaviest fallout concentration and will resist blast from a 20-megaton bomb dropped seven miles away.” Buried under 3 feet of earth, it would be strong enough to withstand the weight of cars parked on top of it and its joints were tested successfully in a laboratory to withstand a 10-foot head of water—“meaning it could be built 10 feet under water without leaking.” Also reported 55 years ago: • A miniature French poodle dyed bright green was the hit of the National Retail Lumber Dealers Association’s annual expo in Chicago. The teeny dog— a four-month-old pedigreed male named Halle—drew attention to the booth co-sponsored by three Pacific Northwest mills and at the end of the show, was awarded to Mrs. C.E. Benson, wife of the executive VP of the Ohio Association of Retail Lumber Dealers, who made the closest guess as to the number of pieces of lumber sold at the booth during the show. • Well known San Francisco wholesaler Hobbs Wall Lumber Co. reorganized. Owners Al Bell and Lew Godard sold stock in a new wholesale company with the same name to Michael Coonan and Bill Johnson, and then changed the name of the old Hobbs Wall to Godard & Bell, Inc., which kept the mill sales agent contract for Willits Redwood. Both companies would operate from the same offices. • Vancouver Plywood Co. formed a wholly owned subsidiary, San Francisco-based Vanport International, to import plywood, veneer and commodities from around the world. The short-lived company apparently was unrelated to the Vanport International formed five years later by Vanport Manufacturing to export logs to Japan. That company continues operating to this day from Boring, Or.
Building-Products.com
KLEAR RGARD 25™ d wood d TRU-CORE TRU CORE® PTI treated for all above ground uses including Severe Conditio ons requiring UC4A* retentions
•
Fully penetrates and protects whilee maintaining natural appearance
•
Treats difficult to penetrate wood: Douglas Firr,, Redwood and Cedar
•
No Incising Required
•
Protection for all above ground, exterior and interior applications
•
Durable against Rot, Decay and Termites (including Formosan) Te
•
UC3A, 3B, with 4A* retentions
* www.permapost.com
E 3834 ESR 4066 SE Tualatin Vly Hw wy Hill b Hillsboro, OR 97123 800-828-0222
www.kop-coat.com 412-227-2700 ip ppd@kop-coat.com
The
MERCHANT
Magazine