The Merchant January 2018

The

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JANUARY 2018

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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

2018 FOREST PRODUCTS FORECAST • WINDOWS & DOORS • WESTERN WOODS

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.”

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Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes, David Cutler Managing Editor David Koenig • david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn, Claudia St. John, Dave Kahle Contributors Ray Barbee, Kevin Cheung, Jennifer Coskren, David Fortin, Erin Graham, Richard Wallace

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2017: THE YEAR AHEAD • WESTERN WOOD PRODUCTS • IMPORT DUTY CONFLICT

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Building-Products.com

CONTENTS January 2018

Volume 97 n Number 1

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Special Report

Features

Departments

33 WESTERN WOODS

10 INDUSTRY TRENDS

8 ACROSS THE BOARD 16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES 20 THE REVENUE GROWTH HABIT 22 TRANSFORMING TEAMS 30 MOVERS & SHAKERS 46 NEW PRODUCTS 55 ASSOCIATION UPDATE 55 IN MEMORIAM 56 CLASSIFIED MARKETPLACE 56 ADVERTISERS INDEX 57 DATE BOOK 58 FLASHBACK

WESTERN WOOD PRODUCTS ASSOCIATION REPORTS ON THE LATEST DEVELOPMENTS IN THE WEST, INCLUDING PROP 65, MOLD PROTECTION, NEW DIGITAL RESOURCES, & SALES TIPS.

NEW YEAR BRINGS CAUTIOUS OPTIMISM… AND CONTINUED SUPPLY CONCERNS

12 PRODUCT SPOTLIGHT

WHAT’S AHEAD FOR WINDOWS & DOORS

26 NAWLA: THINKING AHEAD The

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INDUSTRY EXPERTS TO TAKE ON THE LABOR SHORTAGE

JANUARY 2018

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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

2018 FOREST PRODUCTS FORECAST • WINDOWS & DOORS • WESTERN WOODS

48 MARGIN BUILDERS

THINGS ARE LOOKING UP FOR SOUTHERN PINE PATTERNS

49 EVENT RECAP

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52 PHOTO RECAP

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ACROSS the Board

By Patrick Adams

Some things never change…

I

with each new year, we tend to reflect and plan a bit more than normal. That simple flip of the calendar does more than remind us that we need to begin remembering a new year when we write notes or checks. It gives us another chance to assess our goals and attempt to live up to being the person we aspire to be.

This time last year I made a list of things I would try to do more of. I did end up going to the gym a bit more and I did wake up most days thankful for my family, friends and this great industry that allows us to provide for those who count on us. I did try to not to get caught up in the news of the minute and rather, look through the lens of a lifetime at the events that unfold before us, and I did spend more time living in the moment because it seems my “little kids” can change in about that period of time.

I think about the many things that took place this year in my life, our business, and our industry. There is no doubt that these are what they call the “good times.” Our industry and customers report having great years and in some cases even record years and I am proud that in some small way, we played a role in that. Serving an industry for over 95 years in no small feat! We launched a few new things in the past year and I am humbled by the industry’s overwhelming support and encouragement of what we produced.

As I think about my family, I usually sit back in quiet amazement. Yes, each member is amazing in their own right, but words cannot express sometimes how fortunate I feel that we’re together, healthy and happy. My son just had his first birthday and is taking the role as the family entertainer (and troublemaker). My amazing daughter had her seventh birthday and seems to be going on 17 with the things her young mind considers and what she is passionate about taking action on. With my wife, being married to your best friend and constant champion has so many rewards that sometimes I wonder what I ever did to deserve so much good in my life. Even bringing home a new puppy to the household and a complete backyard renovation didn’t cause even the slightest hiccup to her graceful management of our household and lives.

So other than a chance to humbly express my gratitude, what is the point? I suppose it’s simply this: that some things never change. When I was young, to say I was a conT SEEMS THAT

trol freak was an understatement. There was a plan and schedule for everything! The new year only made this worse, as I documented, planned and assessed. The funny thing is that all of those plans usually centered around trying to improve the things that were lacking and eliminate the things that were bad. We never look at the good things and make plans to change them, do we? Of course not because we like the good things and what I’ve learned this year is that the TRULY good things never change.

I’ve been through tough times and looking back, my wife was always there. Launching new things created stress and a bit of chaos in the office, but my staff figured it all out with smiles on their faces and now proclaim 2017 was the best year ever. Our customers and the industry at large continue to be some of our best friends and it is a privilege to serve and play a role in their success regardless of the market conditions that have existed over the past 95 years. I was recently at a lunch where three generations of ownership of our publications all sat, laughed and shared fond memories of that privilege.

I could make a bunch of new year resolutions for 2018.

But here’s what I already know for certain: the “bad” things will slowly not seem so bad and will eventually work themselves out, while the truly good things will truly never change! I wish all of you a year full of success and gratitude and remain constantly thankful for our opportunity to serve each of you!

“Be at war with your vices, at peace with your neighbors, and let every new year find you a better man.” ~ Benjamin Franklin

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

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INDUSTRY Trends

By Jennifer Coskren and David Fortin, RISI

RISI Viewpoint:

New year brings cautious optimism‌ and continued supply concerns B

Y ANY MEASURE, 2017 was a good one for the wood products markets. The larger question looming, however, is whether 2018 will usher in a similar wave of rising prices and increasing demand.

Given the current state of wood products markets in late 2017, optimism is not unwarranted as housing is expected to finally sustain a 1.3 million unit pace next year as household finances continue to firm. However, uncertainty over the extent to which bilateral trade agreements will stifle Canadian lumber supply, coupled with tax changes and a rise in OSB restarts, will likely lead to another year of cautious inventory buying.

The length of time it takes to fully rebuild log decks from the wildfires in British Columbia and the Pacific Northwest only adds another layer of complexity. These potential supplyside constraints along with insufficient inventory buffers could ignite another round of price gains and impart increased volatility next year as demand moves higher along with housing starts.

Lumber prices charged higher through much of the first half of the year leading up to the preliminary determination on countervailing duties against Canadian producers in April. The conservative buying strategy ahead of this determination helped

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fuel the second price run that began in July, as the wood markets experienced a supply shock from the massive wildfires that erupted in British Columbia and the U.S. West Coast while demand hurtled toward peak seasonal levels.

Forest fires, some of the worst in years, raged through British Columbia last summer, destroying 53 million cubic ft. of timberland and shutting down mills. Salvage plans have not

January 2018

been formulated fast enough and log decks from British Columbia to Oregon have been depleted. Markets face six to eight months of salvage at a minimum, raising the risk that mills in Western Canada could face further challenges in 2018.

Along with raging forest fires, an active hurricane season also helped reduce wood availability through temporary mill closures, while at the same time driving demand higher. As Building-Products.com

Hurricanes Harvey and then Irma approached the U.S. South, home improvement stores could not replenish wood fast enough and order files were pushed out for weeks. With supply so constrained in the third quarter just as demand moved seasonally higher, lumber and panel prices began to surge. By October, prices had reached their highest levels in years.

Such lofty price gains allowed producers to generate solid cash flow and enjoy strong profits.

Housing starts are the linchpin for the 2018 wood products forecast, and most industry watchers and participants are anticipating another year of steady, though not eye-popping, growth. U.S. housing starts have yet to consistently break above the elusive 1.2 million unit mark. After surpassing that level in the first two months of 2017, starts receded and stayed under 1.2 million units until a very strong showing in October.

Despite healthy demand, U.S. housing production has been held back by the supply-side constraints of labor and land availability. Supplyside impediments are expected to ease enough to allow housing starts to accelerate again after a relatively slow 2017. Nonetheless, estimates remain conservative, and the APA consensus forecast has housing starts up a comparatively mild 7.0% to 1.293 million units.

The risk to the forecast for wood products demand continues to revolve around the pace of the recovery in U.S. residential construction, but this risk has been mitigated to some degree by continued strength in the residential R&R market. Nonetheless, the expectation for modest demand growth remains pervasive.

One looming issue for housing in 2018 is the recent tax reform bill making its way through Congress. As of early December, the House and the Senate have yet to reconcile their differing bills. The final measure, however, could have a significant impact on both home sales and the repair and remodeling market.

The House version would halve the mortgage interest deduction to $500,000 for new mortgages, while grandfathering in existing ones. The Senate version, meanwhile, allows for the $1 million threshold to stay but eliminates the interest deduction for home equity loans, a primary source of home renovation financing. Both versions also cap the property tax Building-Products.com

deduction to $10,000. Given the potential for changes to the final bill, it is difficult to ascertain what the effects will ultimately be.

Higher property value states, however, would certainly be more negatively impacted. According to the National Association of Realtors, nearly 50% of California’s housing units had a mortgage over $500,000, while 9% paid at least $10,000 in real estate taxes. In Alabama, the figures were 4.1% and 0.2%, respectively.

On the panel side, uncertainty around the potential for excess wood supply also remains a concern. At least five idled or new OSB mills will be ramping up in 2018, with Norbord’s Huguley, Al., and the new RoyOMartin Corrigan, Tx., mills already prepping for their first shipments. In addition, Tolko’s High Prairie mill, Huber’s Spring City, Tn., plant and a new line at Forex’s Amos, Quebec, facility are also expected to begin production at some point in 2018.

This round of restarts, while not as intense as what occurred in 20122014, will likely still bring with it a period of dislocation and softening prices compared to 2017. Buyers are already anticipating that supply will be available when needed next year, placing significant downward pressure on OSB prices in the fourth quarter of 2017 and likely factoring in to inventory buying strategies for 2018.

On the lumber side, supply constraints resulting from the devastating wildfires this year and the uncertainty surrounding the ongoing negotiations

January 2018

for a new bi-lateral softwood lumber trade agreement have kept markets unsettled. In this environment, traders are likely to maintain their conservative inventory buying strategies while producers look to increase production capabilities where they are able to meet growing demand.

Despite the expected increase in supply from offshore imports and domestic producers, particularly in the U.S. South, lumber markets are expected to tighten further in 2018.

The duties imposed on Canadian shipments to the USA will temper capital investment in Eastern Canada, while timber supply constraints from the decline in the annual allowable cut in British Columbia will result in further production curtailments in the region.

These limitations on supply from Canada, which accounted for nearly 33% of the U.S. market, mean that the rate of supply growth from U.S. domestic production, specifically in the U.S. South, and offshore imports will be key to determining market tightness moving forward.

Offshore imports have buffered North American softwood lumber supply, and should play a larger role as demand continues to outpace growth in domestic supply. Offshore imports to the USA were up an estimated 36% through September as strong demand and prices attracted more offshore supply, although imports still represented just 2% of domestic consumption.

Meanwhile, the supply challenges resulting from the wildfires are expected to linger in 2018 as produc-

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ers in British Columbia and the U.S. West Coast struggle to rebuild log decks as demand rises.

Despite concerns over wood markets for 2018, the most notable reasons for optimism emanate from demand fundamentals. On the demand side, demand for shelter remains strong, although household formations have eased in 2017 as the price of shelter has spiraled upward.

Household formations averaged less than 1.0 million through the third quarter of 2017.

But in a very positive sign for wood products, growth has been completely in the owner-occupied segment of household formations.

Owner-occupied units were up by more than 800,000 through the third quarter, the largest increase in that segment since 2006. These owneroccupied units tend to be single-family units and single-family housing uses far more wood than multifamily, so although top line housing starts have been mixed, gains in the singlefamily segment have given demand a significant boost.

Demand for shelter should remain strong in 2018, supported by continued gains in employment and higher wages. 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.

While new housing construction is critical for wood products demand, residential repair and remodeling is quickly growing in prominence. R&R expenditures are expected to remain robust throughout this cycle. Demand for shelter (household formations) remains strong and continues to outpace supply gains, driving home prices and rents higher.

This strong demand in the face of the moderate pace of residential construction has pulled the inventory of homes available for sale to extraordinarily low levels and pushed prices higher. The dearth of available housing stock significantly lowers the prospects for would-be trade-up buyers to locate a desirable home.

At the same time, price appreciation has resulted in improvements in homeowner’s equity, making more equity available for potential home renovation projects. These factors are encouraging many would-be home-

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buyers to add on rather than trade up.

In the absence of a supply-side response (e.g., a rapid acceleration in housing starts), the continued strength anticipated in both employment and wages is expected to bolster the R&R market moving forward.

Most market participants and prognosticators, ourselves included, agree demand should move steadily higher in 2018. It is developments on the supply-side of the market and buyers’ appetite for anticipatory buying early in the year that are likely to define prices. Inventory levels throughout the supply chain are razor thin heading into 2018 and are not expected to change substantially in the new year.

While there could be some impetus to build inventories in order to avoid a repeat of the supply-side shock from the wildfires and hurricanes that hit the market this summer, anticipatory buying in early 2018 is expected to be relatively modest yet again.

For lumber, elevated prices, uncertainty over the final outcome of the bi-lateral trade negotiations and the expectation for continued steady, but manageable, demand growth heading into 2018 will likely limit inventory purchases early in the year. As long as demand continues to improve at a moderate rate and there are no supplyside shocks, peak-to-peak price gains should be minimal. However, you only need to look back to 2017 to see how market shocks against a backdrop of meager inventory levels can impact prices.

On the panel side, it is the pace of demand growth and capacity addi-

January 2018

tions along with inventory strategies implemented early in the year that will determine prices in 2018. RISI’s assumption is that supply growth will outpace demand and weigh on the OSB market temporarily while the market works to absorb the additional supply.

– Jennifer Coskren, senior economist, wood products for RISI, is the author of the Structural Panel Commentary, and coauthor of the North American Wood Panel 5-Year Forecast and the North American Wood Panel 15-Year Forecast. She works out of RISI’s Bedford, Ma., office and can be reached at jcoskren@risi.com or (781) 734-8929.

– David Fortin, director, wood products for RISI, is the author of the Lumber Commentary, and co-author of the North American Lumber 5-Year Forecast and the North American Lumber 15-Year Forecast. He also works out of RISI’s Bedford office and can be reached at (781) 734-8974 or dfortin@risi.com.

Building-Products.com

PRODUCT Spotlight

By Stephanie Ornelas

What 2018 holds for windows and doors W

INDOW AND DOOR companies are taking note of upcoming trends in the industry. The growing demand for energy efficiency, confidence during the toughest of weather conditions, and the desire to impress their peers are all things homeowners are looking for. Here are some trends the biggest window and door companies are writing down for 2018.

Easy Accessibility YKK AP America, a technologyoriented manufacturer of residential doors and windows, is picking up on the Baby Boomer shift. According to AARP, 10,000 Baby Boomers are

turning 65 every day—making the current aging population the largest in U.S. history. “As this population continues to grow, architects and contractors are increasingly designing for accessibility. We’ve seen a shift, particularly in multifamily and hospitality-related applications, toward designing for accessibility,” said Mike Turner of YKK AP. To respond to this, the company produced its YSD 600 T model door, which provides an additional entrance option for accessible design, and is particularly suited for condominiums, apartments and multi-purpose buildings. “The sliding glass door is devel-

oped to be a part of a holistic design geared toward making spaces more accessible,” Turner continued.

Weathering the Storm Other companies want to assure that homeowners have the utmost confidence during extreme weather conditions. MI Windows & Doors designed its new aluminum 100 series sliding glass door with the company’s StormArmor impact-resistant package to provide maximum protection against severe storms and extreme weather conditions.

“We designed the aluminum sliding glass door to offer not just performance, but the opportunity to blend interior and exterior, while protecting homes from the severe storms regularly experienced in coastal regions,” said Josh Williard, MI’s product manager.

Meanwhile, Jeld-Wen has made its premium vinyl line available with impact-rated glass for added protection in hurricane-prone regions. “The added layer of safety makes the windows an ideal option for homes in areas with a high rate of seasonal storms,” said Jim Parello, vice president of marketing for Jeld-Wen.

Impress the Rest

BARN DOOR OPENINGS are a growing trend, especially among Millennials, because they help separate space easier and add unique style to a room.

(Photo courtesy Jeld-Wen)

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One can argue that safety and accessibility are all necessities when it comes to a home, but homeowners will never lose the desire to impress their guests, which is why several design trends are not just emerging, but constantly growing in demand.

MI Windows’ Josh Williard has explained the growing trend of blending the inside with the outside using large, open-spaced windows. “We Building-Products.com

designed the aluminum sliding glass door to protect homes from the severe storms, but we also take note of popular design trends, which is why the door blends the interior and exterior well.”

Another design trend emerging is the “farm house look” that’s becoming popular especially among Millennials.

Social media outlets like Pinterest and Instagram are becoming a resource for companies to update themselves on the latest trends and barn doors are one of them. “Our customers want living spaces that reflect their unique personality,” said Jeld-Wen’s Parello.

More Convenient Features Whether it’s saving time (and money) on maintenance or opening your doors and windows from afar, homeowners want convenience. As technology continues to make an impact in the industry, window and door companies are using this to their advantage. Homeowners are not only looking for beautifully designed, expansive doors, they want the convenience of automation.

“There’s a growing trend of large doors that can be opened and closed from a distance. Homeowners desire an easy way to open up a home to the outdoors and we’re responding to this,” said Christine Marvin, director of marketing at Marvin Windows & Doors. Marvin’s new Sliding Door Automatic Control (SDAC) gives homeowners a chance to choose to operate the door from a wall switch or via remote control.

While some companies are designing aiming for convenience through automation, others are responding to the demand for more maintenance-free products.

MI Windows & Doors’ Obscure Glass product line Rain

Building-Products.com

MAINTENANCE-FREE products that offer convenience and style are also in demand, which is why MI designed its Rain Glass window.

(Photo courtesy MI Windows and Doors)

Glass is a visually interesting pattern that mimics the look of rain running down a smooth piece of glass. The product masks fingerprints and is stain-resistant, so it requires less maintenance than standard clear glass.

While safety always comes first, companies are finding more ways to give homeowners confidence in their homes without compromising style.

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COMPETITIVE Intelligence

By Carla Waldemar

A new start in the old part of town F

ORT COLLINS, Co., is the capital of cool. But that’s pretty recent. “In the ’70s, this was a sleepy little town of 50,000,” reports Scott Glasscock, owner of Mawson Lumber & Hardware. “Now it’s a prosperous city of 150,000, no longer a cow town.”

The turnaround—and a building boom—came about through burgeoning new business ventures: a new hotel, multiple music venues (many in rehabbed older buildings), and in the last 12 to 18 months $1 billion—“that’s with a B,” Scott makes clear—in construction on the campus of the local university. Oh, and to hydrate the swarms of Millennials now making this their home, 22 micro-breweries.

The city’s historic Old Town is the coolest of the cool scene. And right in the middle stands Mawson, occupying an entire city block in a building that once housed freight.

Just like Fort Collins, Mawson wasn’t always the epicenter of cool. Founded in 1927 by R.L. Mawson, who sold the enterprise to Tom Moore in 1975, Mawson continued to sleep along with the rest of Fort Collins—

“unknown, limited and reached down an alley with no real presence”—until Scott was brought in as a change agent in 2012. First he first resuscitated, then bought the outfit three years ago.

“My background was in hardware, in retail. I was given the mandate to update the operation.” Or, as his boss phrased it, “‘We need to put lipstick on the pig.’ We were down an alleyway with no curb presence. A dirty lot, a smoky office. So I advocated moving into an historic freight depot nearby. We did, in 2012, and the minute we turned on the lights, we were busy—and it’s been busy ever since.

“We renovated both the core and shell, keeping the original windows and doors pretty much intact. We didn’t want to do more than we had to in order to retain the building’s character. So we washed the ceiling instead of painting it. We painted the walls and re-surfaced the concrete floor to remove the shine. We added a glass window wall on the street front, along with an ADA entrance, and

COLORADO DEALER’S move five years ago into an historic freight depot coincided with the hip rebirth of the Old Town district.

FREE DELIVERY is one of Mawson Lumber’s many services that its pro customer base loves.

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Building-Products.com

CONTRACTORS also enjoy the drive-thru advantages of a lumberyard that occupies an entire city block.

widened the aisles. We brightened it with LED fluorescent bulbs, which gave the place a nice crisp look. We cleaned and brightened the whole place.”

And they added SKUS, of course, while retaining its core offerings—lumber and windows and doors, but eschewing departments such as plumbing, lighting, electricity and paint. “We have no room for the product mix of a retail store,” Scott says of a company whose business is 90% pro.

The best change, he insists, was “the culture of just dealing with our builders; it brought us customers by providing more public functioning. And it opened eyes in the commercial side of construction,” to add to as the custom homes and renovations that served as Mawson’s bread and butter. “Before, it was the same old guys we’d always been doing business with. Now we’re dealing with a whole new level of customers, doing $2 million-plus custom homes and major renovations. We get their business once they come in and see what we can, and will, do for them.”

For instance? “At the site, we’ll never just dump the whole order. We deliver it in a progression, depending on what they need that day—floors, windows. We have 11 vehicles (and don’t charge for delivery), and we can spot loads where no one else can” (accomplished without a forklift, which these tricky jobsites cannot accommodate).

Instead of a formal showroom, Mawson has charted a 5,000-sq. ft. conference room, which contains window and door displays, where builders may bring their clients. And the whole endeavor has grown by the most effective way of advertising—word of mouth, making its voice heard in a town full of indie yards, a couple of Home Depots, and a Lowe’s, as well as corporations selling lumber brought in from out of town.

Sleepy no more, Mawson is grabbing attention. “Firsttimers are a little star-struck; it isn’t what they were expecting. We’re unique—not like other lumberyards they’ve visited.” Repeat customers love the new digs, too.

“Immediately, we gave them new reasons to shop here.”

Pros also are crazy about the advantage that occupying an entire city block bestows: They can drive straight through without a turn-around, a big time-saver. They also enjoy the parking lot barbecues, of course, but above all they value Mawson (bestowing it “unbelievable loyalty,” Scott declares) “because we listen. We review the jobs, we’re up-front. We connect with them daily, or even multiple times a day. It’s all about dialogue and contact. That,” Building-Products.com

he’s convinced, “is the epitome of relationship-selling.”

Mawson’s staff of 20 is strong on relationships, too.

“They like working here because of the culture; it’s a very close, tight-knit group. We work hard, but we play hard, too. But the biggest thing they love is that we’re closed Saturdays and Sundays, so they have a weekend. That,” he says, “is huge.”

An agreement with Colorado State University’s Construction Management Program supplies the company with interns, who often segue into employees. Scott reports that it takes a full year of training in product knowledge to build good personnel (“We don’t just take orders”).

“Here,” Scott explains, “we don’t hire folks for a particular department. Everyone wears every hat.”

Speaking of hats: “We also clothe our customers— logo’ed T-shirts, sweatshirts, caps, aprons. It’s our whole advertising budget, and it’s the coolest thing in the world to see!”

Mawson’s commercial business is “fairly new, since our new building. Now, it’s become the place to go to for structural and dimension lumber, commercial lap, and windows. Again, it’s grown by word of mouth; they tell each other where to go. Everyone in the trades knows who Mawson is—guys working in Fort Collins, the county, the state.”

Custom-home builders turn to Mawson for its broad selection of moldings and trim and custom-made doors and windows. “We’re seeing an increase in window-and-door sales; it’s turned into our largest department,” Scott reports. Remodelers kept the company busy during the recent recession and continue to be major players, because “everybody wants to be in Old Town; there are projects going on all the time, and there’s no more empty dirt,” he laughs. So they’re also doing scrapes; they’ll spend $1 million on a scrape.”

The future looks bright, and Scott plans to stick around for it. “It’s a cool scene, and we deal with great people. I’m gonna continue doing what I do!”

Carla Waldemar cwaldemar@comcast.net January 2018

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OLSEN On Sales

By James Olsen

We shall overcome M

OST SELLERS do not (even try to) overcome objections. Most people confuse “agreeability” with “likeability.” They think that if they agree with the customer on everything, the customer will like them best. This is not true. No one marries the yes-man/woman. It’s boring.

Customers, on the other hand, will “date” salespeople (take their number, let them work for free), but not marry (buy from) them, because sellers let them.

Overcoming objections feels like arguing to most people, but Master Sellers seamlessly make it part of their relationship with ALL their customers. They understand we are in a yin/yang relationship and we must bring the yang!

When we are comfortable in our role, customers will be too.

I Have to Check My Inventory This is not true. They do not need to “check” their inventory. If we are calling them on an item that is integral to their business, they KNOW exactly how much inventory they have of that item! Every stick of lumber in their yard has a bar code on it. Ninety-five percent of our customers have real-time inventory right in front of them when we talk to them. We must know this in our souls. Options: Us: “OK, great. I’ll wait while you do that.”

Us: “John, are you sitting at your desk? You are, great.

Can you just pull it up right now?”

Us: “The last time we spoke you said you had enough to last a week. That was a week ago. How have sales been?

We (get in the “we” mode) probably are about due for another load, right?” (Note: WE should know where our customer’s inventory levels are on the items we sell them.

How do we find out? We ask them—all the time. Simple, but most sellers don’t.)

The Market Is Coming Off Our customers must pay their bills whether the market is going up or down. To do this they must sell their inventory.

Unless they are going out of business, eventually they will have to buy again. Options: Us: “How long can you wait before you have to buy?”

Us: “How low do you think it will go?”

Customer: “I have no idea. Probably going to zero.”

Us: “How long can you wait before you have to buy?”

Customer: “I’ll just buy out of distribution.”

Us: “What are they charging you for 2x4 16’s out of distribution?” (We should know the answer to this question before we ask. How? By asking all customers all the time what they are paying out of distribution. If we are a distribution seller, we should know where our competition is on price. Sometimes it makes sense for them to buy locally.)

Us: “When this bottoms out, how many trucks are we going to need?”

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Drill down and be specific on every item we sell them.

With this information we “babysit” the market and our customer’s inventory, so when the market does turn we sell them instead of getting the “I just bought that one” response.

I’m Waiting on a Couple More Numbers Us: “Susan, I’d love to let you shop this a little more, but this is the last one we have at this price. Every salesperson here knows it is a great deal and are offering it to their customers right now. It won’t be here when you call back.”

Email That Over to Me We are on the phone with our customer. Now is the time to sell, not service. Why make the communication more complicated by adding a step? They wouldn’t be asking us to send it if they weren’t interested, right? (Or are they are just giving us something to do to get us off the phone?

Hmm…). Nothing is more efficient in business than two humans on the phone. Ask for the order.

Us: “John, why don’t you give me the order on this one, and I’ll email you my confirmation?”

The highest paid salesperson in your office gets the same objections the lowest paid one does. If we present products and let the customer decide, we will get orders from time to time, but we will sell four times as much if we overcome objections. Master Sellers overcome objections on every call and sell more for it.

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

THE REVENUE Growth Habit

By Alex Goldfayn

Snapshots in revenue growth

I

WAS TALKING with Mike, the head of sales and purchasing at a larger company where the same person handled both items. He told me a fascinating story.

One of his large suppliers made a serious mistake on one of his orders, and Mike (rightfully) came down hard on the supplier. He really chewed him out. Then, Mike says, he never heard from the supplier again.

Me: “And how long ago was this?”

Mike: “Four years ago.”

Me: “How much business did you do with them?”

Mike: “About $4 million per year.”

Me (shocked): “And how big was the company?”

Mike: “$20 million.”

At this point I have to pick my jaw up off the floor.”

Me: “But don’t you need the product?”

Mike: “It was great stuff, I wish I could still buy it now.”

Me: “So why don’t you just call him?”

Mike: “Nope, that’s not how it works. He needs to call.”

Wow. Let’s debrief this. A salesperson got yelled at, and never called again. He was afraid. He didn’t want to get yelled at again. So, he simply did not call again. Ever.

Forever.

The company has lost $16 million in revenue over these four silent years. The owner has lost a couple million dollars in profit. And the salesperson is out hundreds of thousands. Because he’s too afraid to pick up the phone.

Wrap your mind around this. And also this: the customer would still buy, if only the salesperson would call. But he is not calling. And the customer is not buying.

• • • • • • • A salesperson, Chris, is telling this story during a client workshop I am leading with around 50 of colleagues.

Chris: “I had this customer I wasn’t really clicking with, so I did what you advised me to do: just call her and talk to her.”

Me: “Great, how did it go?”

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Chris: “I called her, and I said, ‘Hi, Mary, it’s Chris.

How are you?’”

Mary: “Fine, what do you need?”

Chris: “Nothing, just calling to say hello.”

Mary: “What’s wrong?!”

Chris: “Nothing at all, I was just thinking about you.

How’s your family?”

Mary: “Really? Nobody has ever asked me that before.

They’re fine.”

Chris (talking to me now): “We had a conversation. We talked for 20 minutes. We caught up. We connected.

Business never came up.”

Me: “Excellent. She bought more later, didn’t she?”

Chris (smiling): “Yep.” Me: “When?”

Chris: “About two weeks later she called me and gave a lot more business.”

The business takes care of it self.

• • • • • • • I was on the phone with a prospect, Mark, president of a large distribution company. He relayed the following story: “I got a call on my cell phone from a new CEO of one of my suppliers, and it was the first time anybody had ever called me on that thing!”

Me: “Weren’t you annoyed that somebody called you on your cell phone?”

Mark: “No! We had a great conversation. It was great!”

• • • • • • • There are common threads. Our job is to communicate.

The more we communicate, the more people buy. The less we communicate, the less people buy. Customers like it when we communicate. They appreciate it.

We think that everybody is calling our customers. But they are not. We think that we will be bothering our customers. But we will not.

We are helping them. And they know it. And they like it.

Everybody likes to be helped. Help your customers. Communicate with your customers. They’ll thank you with their money.

Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com (847) 459-6322 Building-Products.com

Relationships Orgill Knows Our Market and Our Business

“We’ve tried other hardlines distributors, Orgill was the best fit.”

Troy Bamberg l Preston Feather Building Supply, Michigan l An Orgill customer since 1998

Consistent Service

The People Make the Difference

“Ever since we started doing business with Orgill,

“Orgill sells hardware—nuts, bolts, screws, tools and rakes

our business. That attitude has never changed.”

same vein, we sell boards and sticks just like all the other

everyone we talked to was interested in helping us grow

Orgill Understands Our Business

just like all the co-ops and hardlines distributors do. In the building centers do. Orgill is different in the same way we are. The difference is in the people.”

“Orgill helped us plan and buy for our new store.

They could do that because they knew us. They aren’t just in the hardware business, they’re in the people business.”

For more information about how Orgill can help you grow your business, contact us today!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017

TRANSFORMING Teams

By Claudia St. John

Creating a harassment-free workplace T

against men of power in the arts, entertainment and political realms—and the rise of the #MeToo movement in response—have focused the nation’s attention on the extent of sexual harassment in the workplace. Many working women like myself are finding that few if any in our circle of friends and colleagues have not had some form of unwanted advance from a man at work.

Lest you think this is not happening in your organization, consider that surveys show that as many as 88% of women say that they have been subjected to some form of sexual harassment, so the odds are good that it has happened or could happen in your workplace.

At the same time, the Society for Human Resource Management (SHRM) found that a quarter of respondents had a consensual romance with a boss or colleague at work, and that 15% of married couples met at work. So if you are trying to grapple with what is appropriate and what is inappropriate, you’re not alone. Here are some key things for you to consider:

2. It doesn’t matter what a person’s intentions are; what counts is how the person’s actions or comments are perceived. This point is clearly lost on many of the high-profile men who have recently been accused of harassment— their public statements all seem to include some form of the sentiment: “I never intended to make [the subject] uncomfortable.” But the law does not concern itself with the intention of the harasser; rather, it is concerned with how those actions are perceived by the recipient.

3. The person filing the complaint doesn’t have to be the one directly harassed; it can be anyone affected by the offensive conduct. Conversely, the person who did the harassing doesn’t have to be an employee; it can be a client, vendor or other third party.

4. Business owners can be held liable for supervisors’ actions, even if those actions violated company policy.

Critical to this point is how the employer investigated and addressed the harassment or whether the employer created an environment whereby an individual would feel comfortable reporting an incident of sexual harassment.

Sexual harassment is not always obvious and can be difficult to detect.

1. The government has a broad definition for what can constitute sexual harassment. According to the Equal Employment Opportunity Commission (EEOC), unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when this conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile or offensive work environment.

What employers should do to protect themselves and their employees.

Fortunately, there are relatively simple steps you can take to protect your employees and your business.

Harassment Policy – You should have a well-written, zero-tolerance policy and detailed complaint procedure in your employee handbook. It should define what constitutes sexual harassment, the process for reporting incidents of harassment, the possible consequences for violations of the policy, and a clear statement that the company complies with all federal, state and local laws relating to harassment and discrimination of all kinds.

If you do not have a policy or have not reviewed it in recent years, now is the time to create one or dust off the old one and give it a solid review. And, in light of recent events, having everyone review and sign off on the policy again, even if no changes are made, isn’t a bad idea either.

Fraternization Policy – You may also want to consider a policy dealing with workplace romance. Such policies often require that both parties sign a statement that the relationship is consensual and that they release the employer from any liability that is the result of the relationship. The policy should also strictly prohibit relationships between a manager/supervisor and a direct report and should specify what behaviors are appropriate and inappropriate at work.

Communication – Actively communicate your policies and your commitment to a harassment-free workplace on a regular basis. Seeing that leaders of the organization take

HE CASCADING ALLEGATIONS

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this issue seriously will ensure employees will feel safe to report instances and will go a long way to showing your good-faith effort to keeping all employees safe.

Training – Train employees and supervisors on what harassment is, how to avoid it, and how to file a complaint.

While training is not a legal requirement in most states,

Q. With all of the discussion about sexual harassment in the news, I’m wondering how to handle situations where co-workers date. Should we allow it? We don’t have a policy for dealing with situations like this.

A. It’s smart that you’re thinking about this! Statistics show that 25% of workers have consensual relationships with a boss (yikes!) or co-worker at some point of time in their working career, and 15% of employee romances end in marriage. You can try prohibiting it with a no-fraternization policy, but that will likely have little effect on the romance and will keep you out of the loop.

Instead, we recommend a Fraternization Policy, which each party should sign, specifying that: (1) the relationship is consensual; (2) relationships between manager-subordinates are prohibited under all circumstances; (3) the company is released from any and all claims of liability should the relationship head south; and (4) what behaviors are appropriate and which are unacceptable.

While no one likes having these conversations, given the reality of romance at work and the possibility of the relationship souring at some time, a solid Fraternization Policy is always a good idea!

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courts and the EEOC agree that meaningful, interactive training carries significant weight in determining to what extent a company attempted to protect its employees from harassment. Our best advice is to train every year or two years so that employees keep the information fresh in their minds and understand how seriously you take issue of workplace harassment.

Monitor – Be active in the management of employees and monitor their behaviors and actions. One of the biggest mistakes managers make is in assuming harassment and demeaning behavior is not happening. Given what we’re witnessing now, it is quite likely that harassment is occurring in some way, shape or form. Managers need to know how to spot possible situations and how to handle them.

And don’t assume harassment is only toward women—the law is gender-neutral, and almost 17% of claims filed in 2016 were filed by men.

These truly feel like extraordinary times, with each day bringing news of another beloved actor or TV personality or respected politician losing his job due to inappropriate behavior. Yet, as depressing as this is, it also gives us all the opportunity to look within ourselves and our companies to ensure we are doing all that we can to protect our employees from inappropriate and illegal behavior.

That can only be a good thing.

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

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SUPPLIER Briefs

Henry to Acquire Fortifiber Henry Co., El Segundo, Ca., agreed to acquire Fortifiber LLC, Fernley, Nv., 78-year-old manufacturer of weather-resistive moisture management systems, including housewrap, building paper, and flashing tapes.

Fortifiber brands include Ply Dry and WeatherSmart housewrap, Super Jumbo Tex 60 Minute building paper, and FortiFlash, Moistop, and Moistop E-Z Seal flashing products.

Freres Rebuilds Veneer Plant Workers displaced by a June 26 fire at Freres Lumber Co.’s Plant 4 are now back at work in the veneer production facility in Lyons, Or. Crews and contractors worked at lightning speed to bring the plant back on line in just over four months.

Freres had actually hoped to return to production before the end of October, but was held up by a largescale electrical failure.

“Resumption of production at the dryer facility has provided a much needed boost of dry veneer to the West Coast panel and engineered wood markets,” noted Tyler Freres, VP of sales.

Barton Supply moved to new quarters in Colorado Springs, Co. B&C Home & Garden Center , Grass Valley, Ca., is switching from True Value to Ace affiliation.

A to Z Supply , Grass Valley, Ca., has officially cut ties with Ace Hardware Nov. 1 and has been using Orgill as its primary supplier.

BMD, Galt, Ca., has acquired distributor Moehl Millwork , Ankeny, Ia., and subsidiary Kansas City Millwork, Olathe, Ks. Weyerhaeuser Distribution expanded its offering of Homasote 440 SoundBarrier panels to its distribution centers in Denver, Co.; Tacoma, Wa.; Houston and Dallas, Tx. Weyco has had growing success with the sound-deadening boards at its DCs in Boise, Id.; Fresno, Stockton, Fontana and Santa Clarita, Ca.

Mendocino Family of Companies has made its first matching donation of $125,000 in its newly established Redwood Valley & Santa Rosa Community Recovery Fund.

PARR

LUMBER COMPANY 14023 Ramona • PO Box 898 Chino, CA 91708

www.parrlumberchino.com (909) 627-0953 Fax 909-591-9132

• Plywood/OSB

• Hardwood Panels

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Michael Parrella – x15 • Vince Galloway – x19 Janet Pimentel – x23

• Chris Hexberg – x22

George Parden – x28

• Bert McKee – x16

Nestor Pimentel – x31 • Joe McCarron – x21 Dominick Cosolo – x14

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THINKING Ahead

By Patrick Adams, chair, NAWLA Marketing Committee

The good times are here again Although big challenges remain I

to any forecaster in the housing industry, the good times are here again!

Housing prices are up for the past 13 quarters in a row, while inventory remains at historic lows. Interest rates are still practically zero and average new home pricing continues to climb. A recent CNBC report shares that housing prices will not fully recover from the recession until 2025, and they forecast pricing and demand will continue to increase at least through that period of time. It’s hard to believe that it was almost 40 years ago in those stubborn 1980s, when mortgage rates were over 15% and we still averaged over 1.5 million starts!

All of this is great news! Tons of current demand, all while those mysterious Millennials and their massive population come of age in peak “family creation” years and just build more demand, while Baby Boomers all stay put instead of selling their single-family homes. So, why are we still struggling to surpass 1.2 million starts if things are so good?

The simple answer is labor shortage. From Reuters to the New York Times to Fortune, everyone seems to F YOU LISTEN

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Photo by U.S. Air Force Staff Sgt. Sarah Hanson

be talking about our industry’s deficit of skilled labor. From forestry to framing with transportation in the middle, for perhaps the first time in our industry’s history, we are unable to over-supply this great market!

The “perfect storm” of capacity leaving the industry during the recession, combined with 10,000 Baby Boomers entering retirement every day is leaving us without the capable labor that leaves us confi-

January 2018

dent enough to expand.

The Bureau of Labor Statistics is predicting the construction industry will face a shortage of 1.6 million workers by 2022, and this statistic does not factor in the material, manufacturing and supply side of the business. Industry observers point to several factors, including: • The recent oil and gas boom has successfully poached workers from construction companies.

Building-Products.com

A Special Series from North American Wholesale Lumber Association

• The recession resulted in laying off over 2 million construction workers who now have found other jobs or retired.

• High schools have shifted their focus from teaching job skills to preparing students for college.

The NY Times recently reported that a “new golden age for the American worker may be right around the corner” as literally every industry in America cites some degree of labor shortage. As a result, wages are increasing and the new tradition of attending university to obtain a degree and six figures of debt is being challenged.

Graph by HomeAdvisor

It’s hard to believe we have a labor shortage, though.

At industry events, I hear of things that sound downright amazing to me. “I’ll pay $65k a year to anyone who can pass their commercial license and drug tests to drive a truck,” I heard one employer say. “We have a constant job posting for site foreman. The position starts at $70k a year with full benefits and only requires a high school diploma,” another says.

Here are the facts: • Demand is strong and likely will remain that way for the foreseeable future.

• We have a great industry made up of hard-working people with values who are willing to pay good wages.

• We apparently need to figure out a new strategy to attract and retain new recruits into our industry.

Now before we all get on the “those crazy Millennials” bandwagon, let’s take a deep breath. While we make company policy changes, and move headquarters into new locations and redecorate, let’s be honest that we don’t truly know what Millennials “want.” In fact, they probably don’t either. What is true is that they need jobs and in the new world of “Indeed recruiting” perhaps we just don’t measure up. I heard one industry veteran say, “We put in our Indeed job posting ‘must apply in

Building-Products.com

person’ and I still get a ton of email applicants. If they can’t follow instructions, then they aren’t qualified to work here.” Perhaps he is correct, but I also know the problem isn’t going to be solved by waiting for applicants to conform to your desired process.

NAWLA has heard this concern from its membership and the industry loud and clear and is determined to help find solutions—so much so that the NAWLA Marketing Committee is dedicating all of 2018 toward sharing resources, experts and success stories of those in our industry who have figured out a formula for success!

Each month, we will scour the industry and provide you with examples of how to overcome this challenge and equip your organization for continued success.

One of the many strengths of NAWLA is our collective membership, our expertise, and our ability to weather any storm through networking and a shared investment in success.

I must end with a shameless plug: If you’re not currently connected with the NAWLA community, you are missing the boat. The fact is, it’s the oldest, most extensive trade association serving the entire North American lumber supply chain. But on a practical level, it connects buyers and sellers, expands personal networks, educates your teams, and expands your market. For years, I’ve had a front-row seat to see this trusted community of wholesalers, manufacturers and service providers make huge deals over handshakes. I’ve witnessed up-and-comers find their career home in this industry because of connections made through NAWLA. I look forward to our team sharing actionable, relevant content this year, curated to help you address the labor force challenges you’re facing today. And we hope you’ll share your stories with us, too.

– Patrick Adams is president of 526 Media Group, Costa Mesa, Ca.; publisher of Building Products Digest, The Merchant Magazine, and Deck Specialist; and chair of the North American Wholesale Lumber Association’s Marketing Committee.

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

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Longtime lumberman still a pro at redwood shake splitting Lud McCrary, Big Creek Lumber, Davenport, Ca., is passionate about preserving the history of logging. On Nov. 12, he and his grandson, Dennis Webb, a fifth-generation redwood shake splitter and forester by trade, demonstrated the lost art of splitting redwood shakes, pickets and posts.

Lud, 89, was a guest of honor at the opening of an exhibit “A Rough and Perilous Life–The Redwood Loggers of Woodside,” put on by The Friends of Huddart & Wunderlich Parks in Woodside, Ca. After a lecture on logging history, over 50 attendees came outside to view Lud demonstrating redwood shake splitting and ask questions. While the demonstration took place, Lud’s wife, Barbara McCrary, narrated with historical information, stories and random facts including the key to finding a good log to split.

Although green lumber is easier to split, Lud and Barbara enjoy finding abandoned old growth logs left behind by other logging companies decades ago. Lud was one of the co-founders of Big Creek in 1946, and now, 71 years later, when he isn’t selling lumber in the office, he practices splitting redwood. The hand-split items are either used on their ranch or donated to local groups doing historical restorations.

Lud McCrary, 1989

FIFTH GENERATION lumberman and Lud’s grandson, Dennis Webb (at left in photo above), accompanied the demonstration and Lud’s wife, Barbara McCrary (at left in photo below), narrated.

2017

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Distributed By

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

(541) 535-3465 • www.normandist.com Building-Products.com

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LOS ANGELES Hardwood Lumberman’s Club held its annual holiday party Dec. 2 at The Cedar Creek Inn in Brea, Ca. (Above left) Bill Fitzgerald, Peterman Lumber, Fontana, Ca., and Dan Bohannon, Bohannon Lumber, Long

Beach, Ca., flank LAHLC Member of the Year Award winner Randy Porter, Sierra Forest Products, Chino, Ca. (Above right) Club mem-

bers posed with a message to longtime member Walter Ralston, who was unable to attend this year's event.

Ben Ford is now transportation coordinator for Idaho Pacific Lumber Co., Meridian, Id. Josiah McDill, ex-Weyerhaeuser, is now managing capital projects for Murphy Plywood, Eugene, Or. Michael Dawson, ex-Carter Forest Products, is a new lumber trader with Hampton Lumber, Vancouver, B.C. Christian Parra was promoted to international new business mgr. for Do it Best Corp., Fort Wayne, In.

Allyn Ford, chairman, Roseburg Forest Products, Springfield, Or., was elected chairman of the American Wood Council. Immediate past chair is Andrew Miller, Stimson Lumber, Portland, Or.; 1st vice chair Danny White, T.R. Miller Mill Co., Brewton, Al.; 2nd vice chair Neil Sherman, LP Corp., Nashville, Tn.; and new director Sean McLaren, West Fraser.

Pete Moss has been hired to manage the garden department at MungusFungus Forest Products, Climax, Nv., according to owners Hugh Mungus and Freddy Fungus.

MOVERS & Shakers Greg Chase, sales mgr., Herbert Lumber Co., Riddle, Or., is retiring in March after a 46-year career in the industry.

James Morrill, ex-Sierra Truss, is now a component specialist with Builders FirstSource, Layton, Ut. Doug Jackson was promoted to president of Cali Bamboo, San Diego, Ca. Founders Jeff Goldberg and Tanner Haigwood are now strategic advisors, but will remain on the board of directors.

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SPECIAL Report

By Western Wood Products Association

The dust settles on Prop 65 updates C

ALIFORNIA PROPOSITION 65 regulations have been updated and compliance is required for producers selling lumber to wholesalers and retailers who will ultimately sell the lumber to consumers in California.

The regulations require warnings to consumers of exposure to chemicals that are known to the State of California to cause cancer or reproductive harm.

While this law took effect in 1988, the regulation changed this past August and it’s important for wholesalers and retailers to take note.

New Office of Environmental Health Hazard Assessment (OEHHA) regulations that will take full effect in August 2018 change the safe harbor warnings, which are deemed to comply with the law in several important ways. For example, the new warnings for consumer products will say the product “can expose you to” a Proposition 65 chemical rather than saying the product “contains” the chemical.

They must also include the name of at least one listed chemical that prompted the warning and the URL for OEHHA’s new Prop 65 warnings website, www.P65Warnings.ca.gov.

The reason for this is because the site is easily accessible, and includes additional information on the health effects of listed chemicals and ways to reduce or eliminate exposure to them. In addition, a triangular yellow warning symbol needs to be present.

In 1986, voters in California

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approved Proposition 65 to address growing concerns about exposure to toxic chemicals—one of them being wood dust. That initiative, officially known as the Safe Drinking Water and Toxic Enforcement Act, requires California to publish a list of chemicals known to cause cancer or reproductive toxicity, and for businesses to provide warnings when they knowingly and intentionally cause significant exposures to listed chemicals.

Naturally, the warnings are intended

to help Californians make informed decisions about their exposures to these chemicals from the products they use and the environment they work in.

Since the original warning requirements took effect nearly 30 years ago, most Prop 65 warnings only state that a chemical is present and can cause harm to one’s health, but they don’t identify the chemical or provide specific information about how a person may be exposed or ways to reduce or

PROP 65 has several small updates meant to protect not just users, but also the businesses that provide the products.

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deemed compliant with the law’s requirement for clear and reasonable warnings. The new update is also meant to revamp Proposition 65 by ending frivolous shake-down lawsuits, improving how the public is warned about dangerous chemicals.

Below are some examples of warnings in our industry:

WARNING: Notices must now state at least one chemical that each user is being exposed to and the potential risks.

NEW UPDATES require a more visual warning to users. While this may be a small change, the updates help prevent more lawsuits, better educating those in contact.

eliminate exposure to it.

California requires wood products producers and others within the state’s distribution chain to inform their downstream customers about the potential hazards of wood dust and chemicals associated with wood products, so this proposition update is speaking to our industry as well.

Manufacturers have the option to put warning labels on all their products but the majority have chosen to send warning letters, accompanied by sample signage, to customers.

Companies like Weyerhaeuser,

Birmingham International Forest Products, and Anthony Forest Products, post safety data sheets on their websites that state hazards, chemicals and risks one can be exposed to.

Although small businesses with fewer than 10 employees are exempt from Proposition 65’s warning requirements, OEHHA states that using the safe harbor warnings is an effective way for businesses to protect themselves against Proposition 65 enforcement actions. Businesses that use the safe harbor warnings are

WARNING Drilling, sawing, sanding or machining wood products can expose you to wood dust, a substance known to the State of California to cause cancer.

Avoid inhaling wood dust or use a dust mask or other safeguards for personal protection.

For more information go to www.P65Warning.ca.gov/wood.

WARNING This product can expose you to chemicals including Titanium Dioxide, which is know to the State of California to cause cancer, and Methanol, which is known to the State of California to cause birth defects or other reproductive harm. For more information go to www.P65Warnings.ca.gov.

Governor Brown proposed these reforms to Prop 65 back in May 2013.

The reform would “revamp Proposition 65 by strengthening the scientific basis for warning levels,” he said. One aspect of this proposed reform was to “require more useful information to the public on what they are being exposed to and how they can protect themselves,” Brown told OEHHA. According to OEHHA, in 2015, UC Davis researchers interviewed more than 1,500 randomly selected Californians and asked them to compare the new specific warnings to the current generic warnings. The results concluded with 77% agreeing that the new warnings would be more helpful than the current system.

THE LAW pertains to anyone who comes in contact with products that can create wood dust.

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Building-Products.com

SPECIAL Report

By Western Wood Products Association

Update:

Protecting your lumber from mold L

REVISED: WWPA’s Mold, Housing & Wood was revised in June to provide updated information and recommendations on mold in response to the current information from the CDC, EPA and OSHA. Users can download the free PDF after registering at www.wwpa.org.

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UMBER IS ONE of the many materials that, under the right conditions, can be a potential residence for mold. In a vast majority of cases, mold problems in homes are related to flooding or water leaks that affect many materials in the structure, including lumber.

Of particular interest lately is the ability of mold to grow on lumber in situations with adequate moisture and how to control and clean it. In most cases involving mold growth indoors, underlying problems such as flooding or water leaks can affect many materials in the structure. While it’s been an issue for many, many years, mold is still a common topic of interest and the U.S. Centers for Disease Control (CDC) and Environmental Protection Agency recently changed their cleaning methodology.

The decision to clean mold from lumber depends on the amount of mold present and how likely it is to be disturbed. In nearly all cases, mold cleaning should be undertaken only after moisture problems are resolved.

The molds seen on lumber are largely a collection of fungal spores on the surface of the wood. As such, wet wiping or scrubbing the lumber will remove the mold. Simply wiping the wood, however, can release those spores into the surrounding air.

A better approach is to gently spray or wet down the mold prior to removal. Once it’s been wetted, it can be removed by wet-wiping the surfaces with a water-and-detergent solution, scrubbing if necessary.

There are a number of products on the market, from commercial mildew-

Building-Products.com

CAREFUL CLEANUP: While mold has been a pressing issue for as long as we can remember, the EPA and CDC recently updated its cleaning methodology when it comes to mold on lumber.

ly not practical for wood products used in active construction projects, it is possible to remove moisture as quickly as possible during manufacturing. Reducing the moisture content of lumber to less than 20% will significantly decrease the opportunities for mold to form on the wood.

WWPA revised its publication Mold, Housing & Wood in June to provide updated information and recommendations on mold in response to the current information from the CDC, EPA, OSHA and the World Health Organization. A PDF is available for free download at www.wwpa.org.

cides to household bleach, which are promoted for removing mold from wood. The CDC recommends using a bleach solution of 1 cup bleach in 1 gallon of water when the water damage is due to contaminated water, such as floodwaters.

For large mold clean-ups, the U.S. Environmental Protection Agency suggests using mild detergent and water. Specifically, for cleaning wood surfaces, the EPA recommends wet vacuuming the area, wiping or scrubbing the mold with detergent and water and, after drying, vacuuming with a high-efficiency particulate air (HEPA) vacuum.

Removing small amounts of mold from wood is relatively straightforward. Mold removal becomes more complex when there are heavy amounts of growth on a majority of the lumber or if the building has been in service for some time and the mold originated from leaks into the building cavity.

Molds are part of the fungi kingdom and all fungi have four basic requirements for growth: suitable temperature, oxygen, food and moisture.

Controlling moisture offers the best opportunity to prevent mold growth on lumber and wood products.

While LBM professionals can’t control all environmental aspects around them, certain precautions can be taken to prevent mold. One method for preventing stain fungi and mold in lumber during production and storage is to submerge it in fresh water, which fills the wood cells with water and limits the availability of oxygen.

Lumber and wood product mills often utilize this method by spraying log decks with water or storing logs in ponds at the plant. While controlling temperature and/or oxygen is generalBuilding-Products.com

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SPECIAL Report

By Western Wood Products Association

Stay educated with WWPA digital publications W

WPA IS THE TRADE association for western lumber and it also offers various publications that benefit lumber throughout the U.S. The association recently appointed Ray Barbee as the new WWPA president who’s looking forward to continuing and improving the services WWPA offers. “We have a number of publications we

Respecting the forest, honoring the past, building the future.

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Yakama Forest Products

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www.yakama-forest.com

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AMONG the publications offered by WWPA is the technical manual on WWPA lumber products, featuring basic categories of lumber, grades, sizes, species groups and more; and the Western Woods species book, packed with full-color photographs that show grade characteristics of Douglas Fir-Larch, Hem-Fir and Spruce-Pine-Fir (South) to assist users in properly identifying and specifying dimension grades.

want to push more in the industry that will help keep LBM members informed and updated. It’s going to be an exciting year,” Barbee said.

In order to keep its reputation as an accredited lumber Building-Products.com

ONLINE TOOLS: WWPA.org offers members a vast number of reading tools. Technical information about lumber grades (left) are available for free download to members and the website’s filtering categories (right) help users locate WWPA member companies by species, product type, services, or shipment methods.

rules writing and grade inspection agency, Barbee explained how the association will continue to work with its team of experienced lumber grade experts conducting mill inspections at member lumber mills to make sure lumber products are in compliance with the lumber grading standard. In order to do so, WWPA is working to

Building-Products.com

enhance its online publication tools and partnerships within the industry.

Resource Library WWPA's website provides members access to the newly updated Western Lumber Resource Library, which is utilized by engineers, architects, specifiers, builders, and industry

January 2018

professionals to support the design, specification, and application of western lumber. The library resources include grade rules, design tools, as well as product and technical support literature to aid in material specification and code compliance. Most of the technical publications are available for free download.

The library consists of educational articles such as Cleaning Mold on Wood. The decision to clean and remove mold depends on multiple factors. The article touches on this process. Other articles include “Design Values and Spans for Alaskan Species: Lumber Design values for Alaska Yellow Cedar, Alaska Hemlock, and Alaska Spruce dimension lumber products,” articles on heat-resistant adhesives and fingerjointed lumber as well as “Fast Facts” are also available.

Lumber Buyers Guide The WWPA Western Lumber Buyers Guide is for wholesalers, retailers, distributors, and international buyers seeking Western lumber products. Users can select filtering categories to locate WWPA member companies by species, product type,

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industry focused statistical reports covering softwood lumber production activity, trade statistics, and average lumber prices. Sample reports and subscriptions to WWPA's weekly, monthly and annual publications are available.

Mobile Friendly

GET DIGITAL: WWPA’s Western Lumber Resource Library is is a great product resource and is utilized to support the design, specification, and application of western lumber.

services, or shipment methods. The association’s Softwood Export Council (SEC) can also provide additional information on American Softwood export products and services.

Lumber Market Statistical Reports WWPA is also looking to enhance its data offering features, making them more accessible online. The association currently offers North American and western U.S. lumber

Perhaps one of the most important things about WWPA’s publications is that they are mobile-friendly. While the association still offers a selective amount of publications in print, those who need quick access can reach the publications via smartphone or tablet.

The website’s advanced filtering capabilities allow members to search for specific products straight from the jobsite on their mobile device.

“This is just one of the ways we’re staying relevant and offering more convenient services to our members,” said Kevin Cheung, chief engineer of WWPA. These are just a few of educational tools WWPA is offering to members.

In addition to these resources, the association is looking to gain more exposure from young professionals and partner more with industry members. Its upcoming relationship with

LIBRARY ON THE GO: The resource library is easily accessible online and mobile-friendly, allowing users to access all of WWPA’s publications on their smartphone or tablet.

NAWLA’s Leadership Summit is a good example of that, where the association looks forward to bringing together western lumber manufacturers and their wholesale customers.

– For more information on how to access WWPA’s publications, visit www.wwpa.org.

We’re growing Colville, WA – Usk, WA – Midway, BC – Eagar, AZ

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SPECIAL Report

By Western Wood Products Association

Coming to Austin:

WWPA to team with NAWLA for its annual meeting W

WOOD Products Association is teaming up with North American Wholesale Lumber Association to host its annual meeting alongside NAWLA’s annual Leadership Summit April 8-10 in Austin, Tx. The event is the culmination of member efforts from both associations to bring together western lumber manufacturers and their wholesale customers.

Known as the largest gathering of western lumber producers, the goal this year is to provide a venue to forge stronger business relationships. In doing so, attendees will have a chance to expand their network within the industry. Registrants will be able to attend all WWPA and NAWLA seminars and education sessions throughout the event.

To make the merge a little easier, an opening icebreaker reception will be offered to all guests before registration opens the following morning.

From there, an array of sessions and meetings will take place. WWPA’s Quality Standards Committee meeting will take off at 7:30 a.m. and a NAWLA joint session at 8:00 a.m. on Sunday. Members can also attend WWPA’s Technical Committee meeting at 8:30 a.m. The NAWLA Joint Wrap-up Session will conclude the morning.

Monday will be full of insight, as guests will have plenty of educational sessions to choose from that feature experienced keynote speakers.

Keynoters have not been announced ESTERN

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WELCOME TO TEXAS: Registration is open for WWPA’s annual meeting held in conjunction with North American Wholesale Lumber Association’s Leadership Summit in Austin, Tx.

yet, but last year had a great response from guests who heard from Ben Kaiser, principal, The Kaiser Group.

The industry luncheon will feature a special Master Lumberman Awards ceremony during which WWPA will honor several outstanding lumber professionals.

The event has also coordinated several activities and outings that cater to those attendees who desire to bring their spouse/companion along with them. Couples can attend a spouse & companion workout class among other events, the Wine, Dine + Nine Couples networking event is

January 2018

designed for couples to network with other like-minded couples. Lunch and a nine-hole round of golf areincluded.

While the event is packed full of keynote presentations and learning seminars, both WWPA and NAWLA acknowledge the importance of networking and have made it a point to include as much “bonding” time as possible. Receptions are designed to make attendees feel more comfortable with each other and offer a chance to talk about their companies, catch up with old friends and ultimately grow their businesses.

Building-Products.com

SPECIAL Report

By Western Red Cedar Lumber Association

Maximizing the value of real cedar T

axiom in marketing: “If you don’t want to lower your price, maximize your value.”

While this applies to virtually all marketers in a competitive environment, it’s been the M.O. of the Western Red Cedar Lumber Association during this tumultuous period for softwood lumber.

The WRCLA spoke at the most recent NAWLA Traders Market in Chicago, and presented its strategy and tactics for keeping the register ringing at the retail level. Some of their insights are worth repeating here.

While the western red cedar industry is fortunate to have a consistent and sustainable supply of quality fiber, as well as demand for the product, recent disruptions including HERE IS AN

Softwood Lumber duties and head-to-head advertising campaigns from composite material competitors with deep pockets have made business anything but usual.

The WRCLA has utilized two resources to guide a program to mitigate these threats: on-the-ground member supplier sales teams and distributors in key U.S. regions, and market benchmarking and research done in 2014 and 2017, respectively.

Supplier sales reps teamed with a vast network of distributors are able to identify application opportunities, which in turn direct the choice of products being manufactured. Take the example of the opportunity to supply more appearance timbers in Texas. Although 2x6 decking is

WESTERN RED CEDAR was used extensively at CHS Baseball Field, St. Paul, Mn.

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always a good bet, timbers are a higher-margin product, and where demand is noted and suitable fiber exists, manufacturing can shift to supply this growth.

The WRCLA then coordinates advertising, marketing and PR efforts to promote these applications in that region and take advantage of these higher-value opportunities.

As with decking in the Pacific Northwest and siding on the East Coast, materials and resources are targeted to these areas to push and capitalize on both long-term plans and opportunities as they arise.

Another example of where the distribution network has provided market intel is the 7,210-seat CHS Baseball Field in St. Paul, Mn. Distribution and WRCLA field reps were able to convince the Field’s owners and architectural firms to use real cedar over another material. As a result, WRC is

streaming TV, social media, PR and online advertising, among others, to promote WRC’s value proposition to their target audience.

So far it seems to be paying off. Awareness of the species and the brand have increased from 54% to 61%, and 30% to 48% respectively, while interest in knowing more has grown 24%.

Specific characteristics of the wood including beauty, durability and ease of installation have also improved in perception as well: 10%, 9% and 30%, respectively.

While the numbers indicate the association’s strategy is working, it is also worth noting that in markets where promotional efforts are less active perception of western red cedar drops, and plastic composites are better positioned on core attributes like perceived environmental advantage, and ease of maintenance.

It’s evident the softwood industry is in a turbulent state and prices are increasing; increases that homeowners will ultimately have to pay. As consumers become more discerning and are exposed to competitive alternatives, the necessity to remain top of mind and reinforce a value proposition that is appealing and persuasive becomes paramount.

By tracking programs and monitoring results, as well as conducting in-market research, the WRCLA has been able to implement a strategic plan to position real cedar as a premium, specialty product, and stay competitive in a crowded, changing market.

All without having to lower price.

– Established in 1954, Western Red Cedar Lumber Association is the voice of the cedar industry and has members in over 131 locations throughout North America (www.wrcla.org).

WRC MANUFACTURING has shifted to address higher-margin timber opportunities.

now the exterior’s central visual feature, and the stadium is a visual showcase, and has been awarded by the American Institute of Architects for its excellence in architecture, interior architecture, and urban design.

In addition to field work, the WRCLA is also following a strategic plan created through consumer and market research. Beginning in 2014, research was conducted in key markets for WRC sales to determine benchmarks for consumer awareness and attitudinal drivers to sales using a controlled set of products: western red cedar, treated pine, standard composite, and premium composite. The data collected was used to shape advertising messaging and strategy. In 2017 a follow-up survey was conducted to track changes in awareness and perceptions of western red cedar and the real cedar brand.

It’s important to note that increasing awareness of WRC is key to increasing its value perception. Studies have shown that consumers who are very familiar with western red cedar are 15 times more likely to consider it, and seven times more likely to select and purchase it.

The WRCLA has focused on a multi-platform advertising and communications plan utilizing traditional media, Building-Products.com

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NEW Products

New Cellular PVC Railing in Town

A Confident Hold LP Building Products’ LP Legacy OSB subflooring is packed with more resin, wax and wood fiber, and made with Gorilla Glue Technology. The engineered subfloor boasts superior moisture resistance that prevents edge swell.

As a result, the product carries a “Covered Until It’s Covered” no-sand warranty, as well as a Lifetime Limited Warranty that lasts as long as the home.

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Fairway Architectural Railing Solutions is now offering Cellular PVC railing.

The product features top and bottom rail reinforced with aluminum insert for added durability, hidden stainless steel fasteners and extensive infill choices including square cellular PVC balusters, round aluminum balusters, 4” glass slats, and horizontal cable.

In addition, the square and round balusters fit securely in pre-punched top and bottom rails–no screws needed.

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Safe Strike Deckorators’ new color choices for Ciderhouse, its new Heritage line of composite decking, delivers a natural appearance and texture with the ultra-low maintenance performance of wood-plastic composite.

Riverhouse (dark brown) and Smokehouse (gray) are designed with an innovative embossing process that creates a distressed pattern that doesn’t repeat for at least 12 feet.

Demo Driver from Milwaukee Tool is built to withstand aggressive applications on the jobsite and features multiple strike surfaces to give users more force when prying and chiseling.

The tool has been designed with an all-metal core that defends against bending or breaking of the shank and ensures the strike cap doesn’t pop off. A ductpiercing tip is designed with an offset blade so users can pierce through sheet metal without damaging the tip of the tool.

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A New Pair of Hues

(800) 729-3878

(800) 556-8449

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Building-Products.com

The Ultimate Cut Kett Tool’s KL-200 double-cut shears slice cold-rolled steel, stainless steel, plastic and Formica without warping or bending the finished piece.

Capable of cutting a radius as small as 6”, the shears are lightweight and maneuverable, and can easily follow a scribed line.

n KETT-TOOLS.COM (800) 215-3210

Tough Packs

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Klein Tools’ Tradesman Pro Tool Gear Backpack has 35 variously sized pockets and is the right size to fit the tools and gear construction professionals need to stay organized. Its tall interior pockets are perfect for long screwdrivers, while covered pockets are designed for meters, testers and leads.

The backpack has extra padding in the shoulder straps for easy carrying, as well as a constructed bottom made of a diamond-textured coated material to increase toughness.

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Can hold 3,000 lb each, even when stacked.

Our racks offer 4-way fork entry.

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Easy Installation, Easy on the Eye

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EchoPanel Balance Tiles are made from recycled polyethylene terephthalate materials and offer a wide range of design possibilities with three different sizes and nine colors that range from neutral to vibrant.

With self-adhesive backing, the installation process of simply peeling and sticking the tiles on any smooth surface makes the tiles an easy sound solution for any space where noise matters.

• 30,000 units sold throughout North America.

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• Punched side rail holes create multiple tie-off points.

• Our racks offer four-way fork entry and are pallet jack movable from each end.

CT-Darnell.com • Sunbelt-Rack.com • 800-353-0892 To find out more or get a quote, call us at 1-800-353-0892 or go to Sunbelt-Rack.com © WTD Holdings, Inc., 2018. All rights reserved.

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MARGIN Builders

By Erin Graham, Southern Forest Products Association

Things are looking up for southern pine patterns L

OOK UP! A southern pine ceiling is an often-overlooked design feature that adds flair and distinction to family rooms, kitchens and porches. Southern pine V-groove pattern material, along with the popular double-beaded ceiling pattern, add value and beauty to any project.

Typically sold in clear, knot-free C&Btr. grade, these patterns are available in a variety of widths and thicknesses.

Dealers can assemble a sample panel of each pattern on an endcap and spark discussions with customers about the possibilities.

Southern pine brings warmth and natural beauty to any interior project from floors to walls and ceilings. Interior wood surfaces are incredibly versatile and can be customized to a home’s unique design.

Once installed, the possibilities for adding dramatic color to a room are endless. One of the inherent advantages to specifying southern pine patterns is its superior ability to accept a wide variety of finishes. Many homeowners prefer to accent the distinctive grain of southern pine by simply applying a clear polyurethane finish to all exposed surfaces.

These clear finishes are generally available in matte/satin, semi-gloss, or high gloss to suit individual preferences.

Southern pine readily accepts solid or semi-transparent

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SOUTHERN PINE PATTERNS are ideal for both interior and exterior ceiling applications.

stains, too. For painting, a coat of primer plus two coats of good-quality latex paint is recommended.

SFPA offers product details in its booklets Southern Pine Patterns and Southern Pine Flooring. Both can be downloaded from SouthernPine.com.

Building-Products.com

PORTLAND WHOLESALERS Photos by The Merchant

PORTLAND WHOLESALE Lumber Association honored Dave Halsey, Patrick Industries, Portland, Or., as its 2017 Lumberman of the Year during its annual holiday luncheon Dec. 1 at Doubletree by Hilton, Portland, Or. [1] Debbie Rakfeldt, Wayne Giesy. [2] Brad Mehl, Bryan Borovec, Gary Newman. [3] Jerry Farley, Rob Hahmeyer. [4] Todd Foster, Parker Wildeboer, Humphry Wildeboer. [5] Ron Hanson, Norm Persons, Tod Kintz. [6] Ryan Holwege, Gib Gibor, David Jara. [7] Kevin Dodds, Andy Building-Products.com

Jones, Tim Atkinson. [8] Ken Doherty. [9] Eric Ortiz, Reid Schooler, Ron Liebelt. [10] Allan Hurd, Elijah Wilson. [11] Jim Adams, Cam Stevens.

[12] John Murphy, Dave McNabb, Dave Malsey. [13] Ryan Williams, Sean Couglin, Nathan Nystrom, Mike Boone. [14] Stan McGehee. [15] Denny O’Sullivan, Ryan Holwege. [16] Dan Weaver, Carter Stinton. [17] Dan Jensen, Peter Gibney. [18] Glenn Fischer, Don Dye. (More photos on next two pages) January 2018

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PORTLAND WHOLESALERS Photos by The Merchant

NORTHWEST WHOLESALERS (continued from previous page): [19] Guest speaker Dennis Richardson, Oregon’s Secretary of State. [20] Paul Quandt, Caryn Lee. [21] Gordon King, Joe Honochick, Mike Phillips. [22] Paul Ericson, Gunnar Brinck. [23] Kris Lewis, Lee Greene, Leslie Southwick. [24] Andy Jones, Jessica Standley, Justin O’Donnell.

[25] Mark Kelps, Bobbi Lyons. [26] Dan Weaver, Kelly DeLacy. [27] Tim Hunt, Brian Johnson. [28] Humphry Wildeboer, Dave Wright. [29]

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Raymond Luther, Lester Sjoholm. [30] Mark Porter, Kelcee Hallstrom.

[31] Kaycee Hallstrom, Karl Hallstrom. [32] John Quast, Paul Owen. [33] Dustin O’Sullivan, Joe Raulerson. [34] Mark Mitchell, Glenn Fischer, David Jara. [35] Brent McGrath, Savannah Stanton, Diego Rodriguez de Olivera. [36] Faculty and students of Oregon State University.

(More photos on next page)

Building-Products.com

PORTLAND WHOLESALERS Photos by The Merchant

* ROUGH TIMBERS * UTILITY POLES * PRESSURE TREATED LUMBER FIRE RETARDANT TREATED * LUMBER AND PLYWOOD

PORTLAND (cont.): [37] Mark Gray, Chelsea Brown, Preston Johnson, Dave Pollock, Mark Auxier, Kalayna Crook, Pat Burns, Cam Stevens.

[38] Harvey Scott. [39] Mark Kelly, Brett & Karen Slaughter, Breanne Marsh, Shelly Gilliam, Josiah Dorr, Mike Taron. [40] Jake Moriniti, Grant Phillips. [41] Chris Knowles, Devin Stuart, AJ Labranche. [42] Terri Adair, Regina Smith, Annie Montey. [43] Ryan Kline, Pete Henningfeld. [44] Megan McMurray.

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2ND GROWTH CHRISTMAS

A SoCal Christmas [3] Brad Schneider, Larry Bollinger, Dave Ower, Craig Larson. [4] Gerry & Patty Perez. [5] Alex Uniack, Dave Rogers. [6] Rex Klopfer, Paul Corso. [7] Karin & Tom Angel. [8] Luis Mendez, Betsy Bendix. [9] Mark Huff, Tyrone Smith. [10] Jeff Donahoo, Tim Hummel, Al Reid, Steve Brown, Doug Willis. [11] Steve Black, Graziella Terranova, Chris Johnson. [12] Bill Sullivan, Kathy Rutledge, Rick Deen, Sean Knight. [13] Michelle Mix, Brian Bunt, Chris Freeman.

(More photos on next page)

Photos by The Merchant

HO! HO! HO! West Coast Lumber & Building Material Association’s 2nd Growth group held its annual holiday meeting Dec. 7 in Brea, Ca. The event featured a Casino Night and election of 2018 officers, including new 2nd Growth president Brian Bunt, WindsorONE; VP Steve Schroeder, Ganahl Lumber; secretary Ryan Lauterborn, Trex; treasurer Daniel Hines, LP; and immediate past president Alex Uniack, Ganahl Lumber. [1] Pete Meichtry, Ryan Lauterborn. [2] Eunice Cruz, Keith Hitchcock, Victoria Foucault.

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2ND GROWTH CHRISTMAS Photos by The Merchant

2ND GROWTH Christmas partiers (continued from previous page) [14] David Tait, Luis Mendez, Kurt Barron. [15] Megan & Joey Thompson, Jason Fellows Esteban Sampayo. [16] Jean Henning, Charlene Valine,

Ken Dunham. [17] Dave Vigil, Zoey Stapenhorst, John Mayhew, Sergio Paz. [18] Daniel Hines, Melanie Hindi, Andrea Lang, Troy Huff. [19] Damien Simpson, Stephanie Barrios, Sergio Rojas, Lizzie Goldowski.

Book now – 2018 season filling fast!

A favored destination for lumbermen Located on Southwest Alaska’s renowned Naknek River, the King Salmon Lodge is the dream destination for your next company retreat. We offer gourmet dining and cocktails, world-class fishing, bear viewing, and outdoor adventure trips. Enjoy: • Fully-guided fishing on the river, bursting with salmon, trophy rainbows, arctic char, grayling and northern pike, plus float planes to remote rivers, lakes and streams.

• Easy access to nearby Katmai National Park, haven of brown bears

• Ranger-guided safaris to view the epic scenery and wildlife • A/V equipment for conferences • Group rates, including whole lodge packages (18 to 36 guests).

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HOLIDAY GOLF Photos by WCLBMA

Thanks to our customers and vendors as we begin our 33rd year • Redwood & Plastic Lattice • Dupont Tyvek • Roseburg DuraTemp • TruWood Siding & Trim • FRP • Fir, SYP & Radiata Pine Plywood

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WEST COAST Lumber & Building Material Association held a holiday golf tournament Dec. 8 at Coyote Hills Golf Course, Fullerton, Ca. [1] Chris Johnson, Michelle Mix, Daniel Hines. [2] Ray Torres, Eunice Cruz, Victoria Foucault, Keith Hitchcock. [3] Andrew Kelley, Kristina Notrica, Alex Uniack. [4] Bill Boyer, Bill Shaw, Jeff Wampler, Mo Shearer. [5] Terrell Turner, Byron Lemus, Scott Spang, Ross Kelley. [6] Larry Christensen, Joe Allotta, Dan May, Ryan Lauterborn. [7] Rick Deen, Rex Klopfer, Bill Sullivan, Mark Huff. [8] Sergio Paz, Dave Vigil, John Mayhew, Grant Pearsall. [9] Lynn Bethurum, Russ Primrose. Paul Corso, John Allen. [10] Hector Barrera, Bob Horton, Jean Henning, Zoey Stapenhorst.

VISIT THE ALL NEW

BUILDING-PRODUCTS.COM Building-Products.com

ASSOCIATION Update Western Building Material Association begins the year with an estimating workshop Jan. 10-11 and a building material marketing course Jan. 24-25, both in Olympia, Wa. Ken Wilbanks will lead classes on sales growth Feb. 13 and for yard foremen Feb. 14-15 in Olympia.

Then the learning moves to Salem, Or., for an intro to building material sales Feb. 20 and an estimating workshop Feb. 21-22.

Mountain States Lumber & Building Material Dealers Association has opened registration for a yard operations workshop Feb. 8-9 at its office in Greenwood Villiage, Co. West Coast Lumber & Building Material Association’s 2nd Growth will meet March 1 in Buena Park, Ca. Los Angeles Hardwood Lumbermans Club has lined up its first meetings of the new year Jan. 11 in Fullerton, Ca., followed by Feb. 8 in Orange, Ca. Western Pallet Association’s annual meeting is Jan. 12-16 in Rancho Mirage, Ca.

IN Memoriam Dan Sullivan Keller, owner and co-founder of Keller Lumber Co., Roseburg, Or., died Nov. 16. He was 93.

A veteran of World War II, he and his father, Clarence, started their own lumber mill in 1953. He continued to run the business until his final days.

Richard L. Laursen, 83, longtime owner of Thriftway Lumber Co., Boise, Id., died Dec. 12.

John Richard Speer, 83, venerable Southern California lumberman, died Dec. 12 in Prescott, Az. He served in the U.S. Air Force during the Korean War. He spent 50 years in the lumber industry, working for Baldwin Park Lumber Co., Baldwin Park; W.J. Evens Lumber Co., Covina; Viney-Milliken Lumber Co., Covina; and Barr Lumber Co., Yucca Valley, before retiring as a handyman.

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CLASSIFIED Marketplace

HELP WANTED

Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6.

Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type.

Send ad to david@building-products.com. Make checks payable to 526 Media Group, 151 Kalmus Dr., Suite D200, Costa Mesa, Ca. 92626. Deadline: 18th of previous month.

Questions? Call (714) 486-2735.

LUMBER CARRIERS from Berkot

AVON PLASTICS, INC. is seeking to hire an experienced Independent Sales Rep for Building Material Products. Territory – Washington, Oregon, Idaho. Competitive commission and training provided. Please complete application and submit resume at Avonplastics.com.

SACRAMENTO AREA retail lumberyard looking for self-motivated inside and outside salespeople of building materials, including framing and deck packages. Wayside Lumber, Rancho Cordova, Ca. Send resume to kevin@waysidelumber.com.

• 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.

Is this your copy?

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12350 Montague St. Unit F, Pacoima, CA 91331 • Phone (818) 272-2000 Manufactured in the U.S. since 1954

MERCHANT Magazine

info@building-products.com

TIMBER PRODUCTS Company packed Orange County, Ca.’s Costa Mesa Country Club Dec. 8 for its customer appreciation holiday luncheon.

ADVERTISERS Index

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

28

Allweather Wood [www.allweatherwood.com]

35

Orgill [www.orgill.com]

21

Bear Forest Products [www.bearfp.com]

54

Pacific Woodtech [www.pacificwoodtech.com]

31

Capital Lumber [www.capital-lumber.com]

13

Parr Lumber [www.parr.com]

24

Collins [www.collinsco.com]

3

Pelican Bay Forest Products [www.pelicanbayfp.com]

57

Columbia Vista [www.columbiavistacorp.com]

43

Potlatch Corp. [www.potlatchcorp.com]

37

CT Darnell Construction [www.ct-darnell.com]

47

PPG [www.ppgmachineappliedcoatings.com]

25

DassoXTR [www.dassoxtr.com]

24

Roseburg Forest Products [www.roseburg.com]

Cover IV

Fontana Wholesale Lumber [fontanawholesalelumber.com] 57

Seneca Sawmills [www.senecasawmill.com]

Huff Lumber Co. [www.hufflumber.net]

15

Simpson Strong-Tie [www.strongtie.com]

International Beams [www.internationalbeams.com]

19

Siskiyou Forest Products [www.siskiyouforestproducts.com] 55

Jones Wholesale Lumber [www.joneswholesale.com]

23

Snider Industries [www.sniderindustries.com]

48

Keller Lumber Co. [www.kellerlumbercompany.com]

51

Stimson Lumber Company [www.stimsonlumber.com]

39

King Salmon Lodge [www.kingsalmonlodge.com]

53

Swanson Group [www.swansongroupinc.com]

32

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

30

Universal Forest Products [www.ufpi.com]

7

Utah Wood Preserving [www.utahtreatedwood.com]

51

Mid Valley Lumber Specialties [www.midvalleylumber.com] 45

Vaagen Bros. Lumber Inc. [www.vaagenbros.com]

40

Norbord [www.norbord.com]

5

Versatex [www.versatex.com]

9

Norman Distribution Inc. [www.normandist.com]

29

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

38

Maze Nails [www.mazenails.com]

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Building-Products.com

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

International Builders' Show – Jan. 9-11, Orange County Convention Center, Orlando, Fl.; www.buildersshow.com.

Western Building Material Assn. – Jan. 10-11, estimating workshop, Olympia, Wa.; www.wbma.org.

Los Angeles Hardwood Lumberman’s Club – Jan. 11, meeting, Heroes Bar & Grill, Fullerton, Ca.; www.lahlc.net.

Guardian Building Products – Jan. 11-14, dealer show, Lake Buena Vista, Fl.; www.guardianbp.com.

Western Pallet Association – Jan. 12-16, annual meeting, Rancho Mirage, Ca.; www.westernpallet.org.

Western Building Material Assn. – Feb. 13, sales growth seminar; Feb. 14-15, yard & delivery managers workshop, Olympia, Wa.; www.wbma.org.

Frame Building Expo – Feb. 14-16, Columbus, Oh.; www.nfba.org.

Western Building Material Assn. – Feb. 20, intro to building material sales; Feb. 21-22, estimating workshop, Salem, Or.; www.wbma.org.

Southern California Hoo-Hoo Club – Feb. 21, meeting, Anaheim Hills, Ca.; www.hoohoo117.org.

Western Wood Preservers Institute – Feb. 21-22, winter meeting, Portland, Or.; www.wwpinstitute.org.

Oregon Logging Conference – Feb. 22-24, Lane County Convention Center, Eugene, Or.; www.oregonloggingconference.

Orgill – Feb. 22-24, market, Orlando, Fl.; www.orgill.com.

Tacoma-Olympia Hoo-Hoo – Jan. 17, board meeting, Tacoma, Wa.; (253) 531-1834; tbilski614@aol.com.

Do it Best – Jan. 18-19, winter conference, San Diego, Ca.; (260) 748-5300; www.doitbestcorp.com.

Willamette Valley Hoo-Hoo Club – Jan. 19, meeting, Eugene, Or.; www.rameses93@nu-world.com.

Sacramento Hoo-Hoo Club – Jan. 22, meeting, West Sacramento, Ca.; jeff.squires@paccoast.com.

Black Bart Hoo-Hoo Club – Jan. 24, industry night, Redwood Valley, Ca.; www.blackbarthoohoo181.org.

Western Building Material Assn. – Jan. 24-25, building material marketing course, Olympia, Wa.; www.wbma.org.

Western Forestry & Conservation Association – Jan. 24-25, annual conference, Vancouver, Wa.; www.westernforestry.org.

Humboldt Hoo-Hoo Club – Jan. 25, crab feed, Elks Lodge, Eureka, Ca.; (707) 601-9128.

North Cascade Hoo-Hoo Club – Jan 31, beer & crab feed, Stanwood, Wa.; www.hoohoo230.com.

888-807-2580 Bend, OR

International Roofing Expo – Feb. 4-8, New Orleans, La.; www.theroofingexpo.com.

www.pelicanbayfp.com

Los Angeles Hardwood Lumbermens Club – Feb. 8, meeting, Orange, Ca.; www.lahlc.net.

DISTRIBUTION LOCATIONS Colton / Fontana / Modesto / Salinas / Stockton, CA

Mountain States Lumber & Building Material Dealers Assn. – Feb. 8-9, yard operations workshop, Greenwood Village, Co.; www.mslbmda.org.

True Value – Feb. 10-12, Spring Reunion market, Washington, D.C.; www.truevalue.com.

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

Tacoma-Olympia Hoo-Hoo Club – Feb. 13, board meeting, Orting, Wa.; (253) 531-1834; tbilski614@aol.com.

“Focused on the future with respect for tradition”

Sacramento Hoo-Hoo Club – Feb. 10, meeting, Sacramento, Ca.; jeff.squires@paccoast.com.

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

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FLASHBack 75 Years Ago This Month

Seventy-five years ago, World War II was the primary topic of most conversations, including on the pages of The Merchant Magazine. In fact, the majority of personnel changes reported on involved lumbermen leaving their current companies to enlist in the service.

Among the other headlines in January of 1943: • The Riverside Lumber Co., Los Angeles, Ca., announced it was closing for the duration, but would be back, in the same location, as soon as the war was over.

• Four thousand industrialists attending the War Congress of American Industry in New York adopted a resolution vigorously condemning the pending proposal by the U.S. Forest Service to use $100 million of borrowed funds to subsidize hundreds of small lumber mills in the South and East, with the intent of supplementing lumber production for war needs.

The proposal, known as the Forest Products Service Plan, would endow the Forest Service with broad powers to “procure, produce, store and sell forest products.” It was awaiting final approval by President Roosevelt. The group’s resolution, as approved by the representatives of every field of American industry, stated: “The government should not compete directly with private industry and private labor, nor should it subsidize any private producers in competition wth other private industry.

WAR SAVINGS BONDS ad was sponsored by The Merchant.

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JANUARY 1943 cover advertiser WendlingNathan Co. was not so much promoting its products to dealers, but more apologizing for shortages due to the massive consumption of the war effort.

“The U.S. Forest Service, before a committee of the U.S. Senate on November 25, 1942, stated in a public hearing that it proposed to the War Production Board, and that the Board has assented to, a program to subsidize production of lumber, pulpwood and other forest products and to subsidize competitors with the forest industries, in order to aid the war effort. This proposal will not only fail to relieve the present shortage of certain forest products, but would reduce the output. The current shortage is caused not by lack of production facilities but principally by lack of manpower.

“It has also proposed a program of federal regulation of timber cutting and utilization as a war production measure. This plan in our opinion is an attempt to foist upon the country, under authority granted for other purposes, an unsound plan for extending governmental control over private enterprise and private industry. We are unalterably opposed to the policy of putting the government in competition with private industry.”

In addition, individual lumber companies wired the President, Congressmen and the War Production Board, urging them to stop the plan and pointing out that log shortages could be better releived and production substantially increased by instead adding manpower and equipment. The Western Pine, California Redwood and West Coast Lumbermen’s Associations, also called on the President.

After two months of lobbying, President Roosevelt would indeed kill the Forest Products Service Plan.

• The war hung heavy even over festive occasions, such as Oakland Hoo-Hoo Club No. 39’s annual Christmas party. Among the more than 200 attendees were a number of former lumbermen-turned-servicemen and 20 wounded sailors and Marines who were recovering at the Oak Knoll Naval Hospital, but were brought to the party as guests of individual members of the club.

The crowd enjoyed dinner and 13 vaudeville acts, chipped in on a collection for the Good Fellowship Christmas Fund, and bid on prize packages (most of which contained Victory Stamps) to benefit the Mayor’s Hospitality House for Service Men and the American Women’s Volunteer Services.

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