15 minute read
THINKING AHEAD
THINKING Ahead By Chris Sainas
Building from the ground up
While the lumber industry offers a variety of opportunities at all different levels of organization, it’s also wide open if you’re ready to strike out on your own. There are always risks involved with any startup, of course; but if you make the right decisions, you can write your own future in this industry, on your own terms, instead of sitting around waiting for the phone to ring. Here’s how it happened for me: “This Is How You Start to Understand Lumber”
I first got involved with lumber as a teenager. I knew nothing about the lumber business, and wasn’t particularly interested in getting into it. It was the good pay and physical activity that initially caught my attention.
A neighbor happened to manage one of the last sawmills in Vancouver, right in the middle of town, not even eight kilometers from my home. Thanks to that connection and the mill’s need for an able body at the end of a shovel, I had an “in.” I was able to land summer and weekend work while in high school and university doing odd jobs such as running the re-saw and driving the fork lift. I’m grateful for all that early “grunt work,” too, because that’s how you start to understand lumber.
I had the misfortune of getting my undergraduate economics degree from the University of British Columbia right around the time the stock market crashed in the late 1980s. Needless to say, the finance industry wasn’t hiring. While there were no opportunities at the sawmill, the manager gave me some advice that changed everything: get into lumber sales, he said.
I took him up on that advice, and eventually found myself in the offices of BC Forest Products. The first question I was asked was whether I had any lumber industry experience. Because it’s rare to find a Canadian sawmill in locations like Vancouver, and even more unusual to find one in a city environment, by all rights I shouldn’t have been able to answer that question with a “yes.” But, I could, and that was the ticket to getting my first lumber sales job! Without it, I never would’ve been hired.
Trying to launch a career in lumber sales when you have no background knowledge of lumber means struggling for years just to figure it out. But coming into the job at age 23 with seven years of experience already under your belt sets a different scene. It makes you credible. That, combined with having an economics degree, helped me to
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achieve success as a salesperson at BC Forest Products.
I remained with the company until it sold its mills in 1996 and transitioned into Fletcher Challenge, and I also spent a few years after that working for Canfor. I did all types of selling during that time, including domestic, retail and industrial. Then, in 1999, an opportunity to become a partner in a tiny, five-year-old wholesale company presented itself. I couldn’t say no. Building from the Ground Up
The firm, called Dakeryn, was being managed by Ray Stewart and Rob Chimko, who was a customer of mine when I was employed at Fletcher Challenge and Canfor. In the course of selling him lumber, Rob and I developed an industry friendship that led to the life-changing offer. Three additional partners also joined the firm, for a total of six, with 12 to 13 years of experience between us.
Initially we had just four mills we could purchase lumber from, and a bank that was keeping a close eye on our operations. We took out loans to put the company together. I’ll be the first to tell you that when you have your own money invested in a venture, every order takes on increased importance and value. With no help from anyone else, we knew we had to treat our banking relationship like gold if we wanted to grow our credit.
We had all been around long enough to see other businesses fail, and we were determined not to add Dakeyrn’s name to the list. We recognized the importance of paying our bills on time and toeing the line with the bank—there was no room for shortcuts or mistakes. If things went wrong, we might not ever get another chance like this. And so we did things the right way, the first time.
Not only did we respect the bank, we also respected the supply chain in western Canada. As the region’s sawmills began to consolidate, it quickly became apparent that there were fewer and fewer people to buy lumber from— which also meant fewer people to sell it to. So we made it our mission to outperform the competition. We put a priority on making Dakeryn a mill favorite.
One way to accomplish that was by purchasing a local remanufacturing plant in 2003, which allowed us to begin producing primed fascia, pattern stock, decking and export grades, and the like. When mills see you doing remanufacturing and adding value to their product, it makes them more likely to sell you their merchandise.
We also increased our footprint in the market by acquiring a small manufacturing plant in Alberta. The operation ships to retailers in smaller volumes than what mills typically supply, positioning Dakeryn to work with customers of all different sizes across Canada.
Mills don’t make what customers need on a day-today basis, so someone has to act as the middleman. My partners and I always believed that we could serve as that connector better than—or at least as well as—anyone else. The risks, not least of all the potential to lose a lot of money, led to plenty of sleepless nights. But our confidence in ourselves, our extensive knowledge of the industry, and a solid business plan overcame all doubts; and we attained the success we set out to achieve.
We ultimately grew Dakeryn into a $250 million-a-year business consisting of four companies, two manufacturing/ remanufacturing facilities, and a workforce of more than 100 employees worldwide. Our model puts an emphasis on dignity, integrity, and respect in everything we touch. We are a living example of how good people doing the right thing equals success in this industry. That’s the basic pathway we followed three decades ago, but the same principles apply even today.
– Chris Sainas is partner/trader at Dakeryn Group of Companies, North Vancouver, B.C., and a 2020 member of the NAWLA Regional Meetings Committee.
Mark Dippel, stud sales mgr. at
Seneca, Eugene, Or., is retiring this month after 27 years. Ted Dergousoff, ex-C&C Wood
Products, has been named CEO of
New Life Forest Products, Flagstaff,
Az. Kevin Ordean is new as forest operations mgr. Matt Carlton has been appointed millwork sales mgr. for Sierra
Pacific Industries, Redding, Ca., succeeding Eric Shelby, who is retiring at year’s end. Deidra Merriwether, senior VP,
W.W. Grainger, has been elected, to the board of directors at
Weyerhaeuser Co., Seattle, Wa. Eric Cremers has been promoted to CEO and president of
PotlatchDeltic Corp., Spokane, Wa., effective Jan. 1, 2021. He succeeds
Michael Covey, who will remain chairman of the board. Jack Porter, ex-Marine Lumbrer, has moved to Hampton Lumber,
Portland, Or., as Warrenton mill sales mgr. Jennifer Elliott, ex-TimberTech, is new to Gulfeagle Supply, Denver,
Co., as a territory mgr. John Geigley, ex- Younger Brothers
Components, has joined R&K
Building Supplies, Gilbert, Az., as truss division mgr. Jamie Barreiro, ex-Katerra, is now senior estimator at Oregon Truss,
Dayton, Or. Spencer Goruk has been promoted to global category mgr.-lumber at
Katerra, Scottsdale, Az. Ken Bell has joined BuildersMax,
Anaheim, Ca., as business development mgr. Dave Cox, ex-ABC Supply, is a new territory mgr. at Roofline Supply &
Delivery, Sacramento, Ca. Richard Stamsek has joined Atlas
Roofing Corp., as Los Angelesbased district sales mgr. for the
Southwest. Jesse A. Hohlt, ex-Interfor, is now a procurement forester with Gilchrist
Forest Products, Bend, Or. Dana Geisler, ex-SPEC Building
Materials, has been named regional
VP of Pacific Coast Supply, Denver,
Co. Dan Chadderdon, ex-SPEC, is now Denver regional mgr. with
Pacific Coast Supply. Donald Haid has retired as corporate economist from Weyerhaeuser Co.,
Seattle, Wa. Nick Milestone, ex-Katerra, has joined the Softwood Lumber Board to support its mission in the areas of strategic partnerships and adoption of mass timber construction in the
U.S. Eric Cremers, PotlatchDeltic;
Caroline Dauzat, Rex Lumber; and Hugues Simon were appointed to second terms as SLB directors.
Keith O’Rear, Weyerhaeuser, was appointed to a first term. Paul Drace, ex-RedBuilt, is now
VP-sales & marketing for
SmartLam North America, Eagle,
Id. Octavio Vazquez-Ederra, Owens
Corning, is now senior area sales mgr. in Denver, Co.
Holiday Greetings from Parr on our 44th Christmas
Antonio Avina Alfredo Becerra Paul Blevins Norm Boucher Edward Butz Jose Chicas Rosario Chicas Dominic Cosolo Karen Currie Steve Daugherty Nick Ferguson Martin Gallicia Ricardo Garcia Fidenceo Gomez Hector Gonzalez Larry Greene Karen Gregorio Elvira Hernandez Chris Hexberg Pedro Martinez Joe McCarron Bert McKee Reynaldo Merlan Brad Mortensen Rafael Pantoja George Parden Timoteo Paredes Michael Parrella Peter Parrella Kurt Peterson Eduardo Pierre Janet Pimentel Nestor Pimentel Yolanda Rodriguez Leticia Roman Alex Romero Lois Tavenner Melinda Taylor Antonio Vargas Enrique Vargas Christopher Velasco Oscar Villegas Pamela Winters
14023 Ramona • P.O. Box 989 • Chino, Calif. 91710 • (909) 627-0953 FAX 909-591-9132 Thank you to our Customers and Suppliers
Jill Twedt has been promoted to •Gazebos – providing more shelter said. “Every now and then a little rumor pops up that auto Amber Mikkelsen Lakes, this number is expected to grow a bit over the next , ex-Sierra Pacific Alison Farrington, national retail senior vice president at Boise than a pergola, gazebos offer a point scanners are taking the place of good people, and that’s just few years. Windows, has rejoined American performance mgr.; Bob Gumash, Cascade, Boise, Id. of retreat and greater protection not the case.” “The technology isn’t for everyone,” he concluded. “For Building Supply, Sacramento, Ca., strategic projects mgr.; Beka Armando Mejias, ex-Katerra, has hired on at Peninsula Building Materials, Santa Clara, Ca., as purchasing/inventory control mgr. Jason Gobel has been promted to general mgr.-specialty products business unit for Northwest Hardwoods, Tacoma, Wa. He from the elements without isolating inhabitants. •Exposed Timber structures – the natural color and grain of redwood timbers lend a solid support to a greater structural design. •Decks – a redwood deck can last a lifetime when it’s built and mainCoulombe agrees: “When we started this journey, we knew it would be a big change for our folks; our graders are some of our best employees, valued and important pieces of our organization, and we didn’t want to lose any of them. In our case, we took former line graders and put them in roles like scanner technician to keep their expertise close at hand.” Challenges Along the Way smaller mills, the ROI won’t ever be there—and they will continue to be successful. For our larger ones, this may be something more of them may consider in the years to come.” “The technology will continue to improve, and we expect to see more industry peers getting on board,” said Coulombe. “Is it worth it for Irving Forest Products? Without a doubt. The benefits far outweigh the challenges, and the equipment we’ve chosen is helping us to better in outside sales. Stephanie Daniels has been promoted to national director of business development for the Shingles and Underlayments Division of Atlas Roofing Corp., Atlanta, Ga. Craig Nath, Milgard Windows & Doors, was elevated to VP of operHuston, sales support coordinator; and Aaron Marker, sales training & retail playbook mgr. Lou Pohl has been hired to read the small print in contracts for Mungus-Fungus Forest Products, report co-owners Hugh Mungus and Freddy Fungus. succeeds interim GM Jim Canter, tained well.As is often the case with technology, there were chal- serve our customers’ ever-changing needs, and that’s what ations for its California-based westwho is now sales mgr.-specialty products. Jason Allen is new to sales at Legendary Doors & Windows, Irvine, Ca. James Lewis Jr. is new to Nichiha USA, as territory sales mgr. for Oregon. Dave Gaudreau was named director of sales for MaterialsXchange, Chicago, Il. Steve Sladoje is now chief operating officer. Dave Anderson, president, Mead Lumber, Columbus, Ne., has added the role of CEO, succeeding Craig Bradshaw, who remains on the board. INCREASINGLY backyard builders are realizing that the best contemporary design materials aren’t grown in the lab, but out in unfiltered nature. •Planters – non-toxic and all natural, redwood is ideal for garden boxes and planters to hold flowering plants, herbs, even vegetable gardens. •Furniture – any form of seating, tables, benches all deliver the promise of a comfortable place to gather when built with redwood. •Arbors – create memorable transitions from one part of a yard to the next with redwood arbors. Among the trends emerging in landscaping design, there’s no better fit for bringing beauty, color and presence into an outdoor space than redwood. Combined with its longevity, and environmental qualities, redwood is the top choice among landscaping trends. It is a choice any consumer can make with confidence, and reaffirm their wise decision year after year. –Jessica Hewitt is director of marketing at Humboldt Redwood Company. HRC is working to cultivate a lasting legacy of environmentally responsible forestry and sourcing, manufacturing, and distribution of top-quality redwood lumber products. lenges as the new tools were implemented at Irving Forest Products. Initial technology had issues with identifying decay due to its color, among other things. The installation process required lots of checking by people—lots of man hours—to get it started and up and running accurately. Constant checks were the name of the game for a while, but Coulombe says those issues are in the past. “The key to success with new technology is to assign someone to take ownership of the program or equipment and really usher it through the quality control checks, the calls with the manufacturer, etc.,” Coulombe commented. “Precise technology at this level will never be set-it-andforget-it; just when you think you’ve hit that sweet spot, a fleck of dirt on the lens shows up as a defect. It’s a constant process, but worth the effort.” To Each His Own By Easterling’s estimates, maybe 10% of NELMA mills use auto grading equipment. With the technology still fairly new to the lumber industry in the Northeast and Great it’s really all about.” SFI Growing Certification of Family Lands The Sustainable Forestry Initiative and the American Forest Foundation have formed a new partnership to grow the amount of certified family and other small holdings in North America. Under their new Small Lands Group Certification Module, companies certified to the SFI Fiber Sourcing Standard will be able to form a new type of certification group to certify small lands within their wood and fiber supply area. The Module will be submitted to the Programme for the Endorsement of Forest Certification (PEFC) for approval this spring. Upon approval, fiber produced from lands certified under the program will be certified for both PEFC and SFI labels and chain-of-custody systems. ern division. Manny Lopez is now production supervisor for Milgard’s plant in Temecula, Ca. Jason Hanegan has been promoted to senior VP of national sales for Emery Jensen Distribution, White Brook, Il. Sam W. Francis, retired senior director of national programs, American Wood Council, was presented the International Code Council Bobby J. Fowler Award. Daniel Colvin is a new lumber account executive at Do it Best Corp., Fort Wayne, In. Recent promotions include Chris Beach, now member growth mgr.; David Dalman, senior data analyst; Green Diamond Expands to Northwest Montana Green Diamond Resource Co., Seattle, Wa., will acquire 291,000 acres of working forest land in northwestern Montana from Southern Pine Plantations. The deal, expected to close Jan. 14, 2021, will bring Green Diamond’s total land base under management to 2.1 million acres in 10 states across the West and South. “We see this as a generational asset,” said president Douglas Reed. “It is our intent to manage these lands as working forests going forward.”
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Larger pieces available depending on current inventory
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the finest timbers available, delivered to customers accurately, honestly & on time.
THE POSSIBILITIES KEEP GROWING:
