EXPANDING YOUR DECKING SALES MOULDING & MILLWORK FORECAST
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FEBRUARY 2013
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UltraShield Composite Decking “It’s Too Good To Be Wood”
February 2013
THE 4 REASONS YOU’LL NEVER NEED ANOTHER EWP SUPPLIER:
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1 COMPLETE PRODUCT LINE BCI® Joist, ALLJOIST®, VERSA-LAM®, VERA-STUD® products and more.
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3 TOOLS AND GUIDANCE Better workflow, project management, optimization, inventory control & more.
SURVEY SHOWS INCREASING CONTRACTOR LOYALTY TO BRANDS, SUPPLIERS
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6 TOTALLY RANDOM 20 COMPETITIVE INTELLIGENCE 22 OLSEN ON SALES 24 GREEN RETAILING 32 APP WATCH 36 ASSOCIATION UPDATE 38 MOVERS & SHAKERS 42 FAMILY BUSINESS 44 NEW PRODUCTS 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX
CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2013 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.
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TOTALLY Random By Alan Oakes
The
MERCHANT
Magazine
www.building-products.com
A publication of Cutler Publishing
4500 Campus Dr., Ste. 480, Newport Beach, CA 92660
What’s your new growth strategy for 2013?
I
has started well. After the first weeks, we are hearing mostly good news, which is a good sign. Now that the fiscal cliff issue has been somewhat settled, it will interesting to see if there is any fallout to the economy from the increased taxes pretty much everyone will be paying. The first obvious hit has been the increase in FICA tax that I certainly saw in my first pay slip this week. I am sure more stealth surprises will come. But, in my calls to contacts—many of whom are owners—when I ask how their businesses are doing, the first response is things are getting better. When I press, I get well, things are not getting worse. Now I think most businesses have seen some forward progression, but there is no doubt we have been operating with the philosophy that “flat is the new up.” We have all faced grave challenges to keep our businesses operating profitably and have been happy to escape the past two or three years on an even keel. The successful entrepreneurs and managers have weathered the storms. Some competitors have not, but—as is life—a whole new set of challenges may be coming our way. I have to say, doing business is not as easy as it once was. Starting a completely new business or substantially repositioning an existing business is a lot easier to do in a buoyant economy than in the uncertainty of the past few years. Simply doing what we did in the past may no longer be enough. Most entrepreneurial businesses in the past ran their companies “off the cuff,” but that is less easy to do these days. Along with supply, another primary issue most businesses fight with today is cash flow. As business starts to grow again that will probably get worse due to the shrinkage in credit lines over the last four or so years. At a time when banks have not been kind to this industry, it is certainly time—ahead of the curve—to look to improve credit lines, search for new lines of credit, and discuss with your suppliers how you might get an increase in credit line to support a growing market. Most entrepreneurs are good at seeing how to grow business, but the nuts and bolts of finding capital may not be their strong point. Many a fast-growing company has gone out of business because it did not have enough capital or credit to support the growth. We certainly have seen that the past few years. Most banks or investors will also want to see that there is a management team in place to be able to guide the business going forward and, more importantly, that there is a good plan in place to achieve the growth. Do you have a formal growth strategy for 2013 and 2014? How will your company manage it? All data suggest housing starts will be 900,000+ this year—nice growth over 2011. In an improving economy, remodeling will continue to increase, too. If we do see an explosion at some point (and I am not suggesting it is imminent), how equipped are we to handle it? The future, for sure, is uncharted and it will a require a different mindset than five years ago as well as a different mindset than we needed to survive the past five. A lot of management and staff that were here in the boom of 2003-2006 are no longer in place. In fact, for many companies, there has been no real growth since 2007. Many learned the hard way that what goes up can come down even faster. We would all like to think we have learned a lot and will not get ourselves in the same mess, but we will—human nature! So have a viable, comprehensive plan in place to manage the increase in capital cost. If we have been able to secure low-interest funding these past few years, it is clear that as the economy improves, rates will also start rising. All that being said, we have stronger, battle-worn owners and managers, now better equipped to manage and grow responsibly. See you on the road. HOPE YOUR YEAR
Alan Oakes, Publisher ajoakes@aol.com
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The Merchant Magazine
February 2013
Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Dwight Curran James Olsen Jay Tompt Carla Waldemar Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com
How to Advertise
Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com
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SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.
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INDUSTRY Trends Moulding & Millwork Forecast
Stairs step up as trim’s fastest climbing product
S
TAIRWORK WILL POST the biggest gains among all moulding and trim products in the U.S.’s $5.4-billion-ayear market, rising 11.3% annually through 2016, according to a new Freedonia Group forecast. Because most stairwork is installed in new structures, rebounding new construction spending will spur increases for such components as banisters, risers and treads. The two most commonly used materials in stair parts and systems are wood and metal, due to their strength, durability and beauty. Wood dominates the residential market, while metal accounts for the largest share of
non-residential demand. In general, stairwork is more frequently used in non-residential, where structures with more than one story must incorporate stairs as safe alternatives to elevators in case of fire or power outage. Nonetheless, residential wood staircases are generally more expensive than non-residential metal stair systems. In recent years, the value of metal stairworks overtook wood in the overall moulding industry, due to the low level of residential building and the low price of wood. Going forward, however, Freedonia expects wood stairwork demand to rise at an above-
Moulding Demand by Market (million dollars)
2001
2006
2011
2016
2021
Residential
2337
3106
1549
2725
3665
New
1296
1811
552
1485
2185
Improvement & Repair
1041
1295
997
1240
1480
Nonresidential
857
955
776
1080
1250
New
633
702
529
790
940
Improvement & Repair
224
253
247
290
310
Total Moulding Demand
3194
4061
2325
3805
4915
Source: The Freedonia Group “Moulding & Trim to 2016” Building-Products.com
average pace, reaching $955 million by 2016. With residential construction rebounding, many builders and homeowners will opt to install more decorative stairways, such as those with intricately carved railings and balconies, to improve the appearance and value of their homes. Overall U.S. demand for moulding and trim is forecast to rise nearly 11% per year to $9.0 billion in 2016, driven by a sharp rebound in housing and building construction. Engineered wood will be the fastest growing material, primarily for residential moulding and exterior trim. Demand for interior moulding in the new non-residential market should rise 8.4% a year through 2016 to $790 million. Such structures as restaurants, hotels, resorts, casinos, high-end retail sites, and office buildings install chair rails, mouldings, baseboards, casings and other components for both aesthetic and practical reasons. For example, owners of restaurants may use engineered wood or plastic chair rails to prevent damage to a wall surface. Non-residential improvement and repair demand for interior mouldings will climb 3.3% per year to $290 million in 2016—the slowest growth rate of all markets. Few building owners and managers replace interior mouldings for aesthetic reasons, only installing new products when the old trim has become damaged or worn.
February 2013
The Merchant Magazine
9
FEATURE Story Contractors’ Buying Patterns
Contractors increasingly loyal to brands, suppliers
L
E.K. CONSULTING’S THIRD annual survey of 650 contractors shows that purchasing preferences and priorities reflect a renewed sense of optimism. For the first time, the report also identifies top-rated manufacturers across 14 categories, based on contractor responses. According to the survey, many contractors are simply walking away from jobs that they don’t expect will provide appropriate margins (see Figure 1). They are also finding non-price mechanisms to address pricing pressures, with nearly half of those surveyed performing extra services rather than reducing their quotes. When selecting products, contractors have continued to value their trusted brands during the downturn. They generally remain loyal to proven products, rather than risk pur-
Figure 2
Contractor Purchase Criteria Importance Percent of Contractors Rating 6 or 7
Figure 1
Contractor Response to Price Pressure Percent of Contractors Rating 6 or 7
chasing less expensive alternatives by other manufacturers. Contractors are also decreasing their searches across multiple retailers and distributors to purchase their favored products at the lowest prices.
Durability Top Consideration
The importance of using trusted brands reflects contractors’ belief that durability is the number-one purchasing criterion. Product reputation and warranty are among the top product selection considerations (see Figure 2). Price remains a significant influencer on contractor purchasing, but has run second to durability in each of the three surveys. Energy efficiency is also significant, with 57% of contractors stating that it is an important consideration.
Measuring Channel Shifts
In the two previous L.E.K. surveys, contractors stated that price was a major reason for shopping at big box stores
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Building-Products.com
even though they under-performed on other services compared to pro channels (one-steppers/specialty chains, two-stepper/specialty independents and broadline distributors). While price is important this year, more than half of contractors said that convenience has driven them to spend more at big box stores because of such benefits as close proximity to job sites, inventory, and product selection. Big box stores also have the right products in stock so contractors can purchase materials as needed, rather than tie up capital in materials or worrying about storage logistics of purchased items. However, other factors are drawing contractors away from the big box channel. As the importance of price becomes slightly de-emphasized, the shift toward big box stores appears is expected to decline slightly during the next three years (see Figure 3). Pro channels are seen as providing faster, more reliable delivery and also have other advantages, such as contractor services and knowledgeable staff. This shift is expected to benefit the one-steppers the most. One- and two-steppers are outperforming big box stores in areas such as delivery speed and on-time guaran tees, contractor services, and knowledgeable staff. The online channel remains small, but has been growing consis tently. Contractors are increasingly using the Internet to gather product information (particularly on manufacturers’ sites), as well as pricing information on channel sites.
Ranking the Manufacturers
Using the contractors’ responses, L.E.K. rated companies based on an aggregate score of the following four attributes: product breadth, quality, price and service level (see Figure 4). Because contractors are loyal to durable brands with strong reputations, earning high performance scores is critical to product manufacturers. While receiving the highest performance score in each category is notable, these categories remain very competitive. One-third of the categories have leaders with only a slightly higher score than the category average.
Figure 3
Contractor Average Purchase Frequency by Channel (2006-2015)
focusing more strategically on efficiency and productivity. Product manufacturers have the potential to gain share by providing quality products that demonstrate energy efficiency or sustainability. Successful product strategies also require original equipment manufacturers (OEMs) to clearly understand the product requirements and pricing thresholds of their primary customer segments. As part of this customer segmentation, OEMs must revisit their channel strategies to ensure they are providing the right products through distinct big box and pro channels. Manufacturers typically trade low margins for high volumes via big box stores. Companies that remain overly committed to this price-sensitive channel may struggle to increase their revenues. To extract sufficient value from
their intellectual property, OEMs should strongly consider selling new and premium products through pro channels, where profits are traditionally higher and the differentiation is sustainable. For this strategy to succeed, however, OEMs must have clear pricing strategies among channels and establish programs to support their distribution partners. And they must also understand the right mix of innovation, quality, and price that attracts contractors to their products—instead of to the alternatives next to them on store shelves. Manufacturers that can develop and position targeted products across key segments of the channel (and provide product and “how-to” information online) will be positioned to capture added share as demand continues to grow.
Figure 4
Highest Performing Manufacturers
Planning for Growth
Renewed confidence in the building and construction market has contractors thinking beyond just price and cost containment. Instead, they are Building-Products.com
February 2013
The Merchant Magazine
11
INDUSTRY Trends By George Gehringer, Metaphor LLC
Deck and rail design trends
Blurring the boundary between indoors and out
HOT NEW COLORS in decking (above) and flooring (opposite page) bring the indoors out and the outdoors in. (All photos courtesy Metaphor)
M
Y EARLY MEMORIES of outdoor living are eating at a wood picnic table and setting up folding aluminum chairs in the yard. Our backyard was where outdoor activities resided, but we had no idea that it was a lifestyle. When we went to summer gatherings, there rarely were specific outdoor living areas—except maybe a concrete slab. Then the deck became a popular feature in new construction, creating the footprint for today’s outdoor room. Even though pools and patios had a certain appeal, the deck was a new private backyard space distinctly different from the front porch. This privacy element has a similar appeal and function as indoor spaces. As the Boomer generation became more mature and their indoor spaces were furnished, renovated and completed, there came an urge to create more functional and aesthetic outdoor spaces. As the home opens up into one great room indoors and out, the transitions in materials and styles become more obvious. Selecting flooring or decking, banisters or railings, furnishings, appliances, accessories, colors and materials all blend into one narrative for the consumer. Color and design are the first and possibly the most important criteria for a consumer in selecting an outdoor living product. And since the hipness factor in outdoor living constantly evolves, retailers need to keep pace with the changing style requirements consumers expect.
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Today’s consumer sees little difference between indoor and outdoor living. In fact, manufacturers of popular indoor furniture brands are rapidly move to launch outdoor collections. Outdoor dining furniture accounts for 52% of all outdoor furniture sales and is slated to grow 0.5% this year, topping $2 billion in sales. As 70% of consumers own outdoor dining sets, it seems natural that easy access to these areas dominates the focus of consumers as they create the perfect deck configurations. Sliding doors, full swing French doors, and transom doors are very common as a transition from in to out. These wider openings bring both the look of the inside out and the outside in. Most consumers prefer seamless styles from room to room, and this preference carries over to the outdoors. As the requirement for more seamless fashion continues, manufacturers of outdoor building products will be faced with adapting to new desires. For deck and railing as well as siding, this means tracking the trends in flooring, banisters, and wall treatments. Recently, we observed a new development in wallpaper for outdoor applications. Regional environments and weather patterns greatly influence indoor/out lifestyles. As in interior styling, the use of wood and stone is preferred, as they tend to be what the consumers are familiar with. Decking and railing, like other interior materials, must duplicate natural materials as realistically as possible. This has been an ongoing trend in flooring that is projected to continue.
Landscape/Deck Integration
Deck designs are ever evolving and becoming more than just a platform off the back of a house. They are integrating into the landscape or conversely integrating landscaping into the deck. Decked paths lead to living spaces and cooking areas. Foundation plantings are moved to foundation planters, bringing plants closer to the house for shade without plant roots affecting the house foundation. Mixing materials creates hardscape and softscape areas, which better integrate landscaping into the living area. It also can support water features more effectively, which provides areas for relaxation, and can hide water recovery systems, storage and utilities.
Gardening
We all are familiar with window planter boxes, especialBuilding-Products.com
ly in urban environments. As the locavore movement continues to expand, there is a greater desire to grow what we can and buy from local sources as often as possible. In addition to utilizing spaces more efficiently, these new garden wall systems can act as railings, create privacy, improve climate control, and provide elements of shade. Rooftop gardening and landscaping are solving heating and cooling problems by providing a new element of insulation. These systems run the gambit from sophisticated multi-layered installations that integrate irrigation and rainfall controls, to modular boxes for ease of installation and use. The obvious use of these spaces did not come to mind until restaurants began to harvest their own rooftop herb gardens. The hospitality industry is also transforming rooftops into bar, dining and lounge areas. However, as energy efficiency becomes a driver in energy independence and cost control, there are many opportunities to integrate decking systems into these rooftop options.
Water Features
There are many forms of water features in today’s outdoor lifestyles. We all probably have experienced outdoor showers while at the beach or lake. These connections to nature are being extended to both everyday living and in higher-end applications, as well as more exclusive hospitality settings such as hotels and spas. Water recovery is not a new idea. However, we expect it to grow in importance as climactic conditions become more unpredictable. As we all know, there have been severe regional droughts over the past few years, as well as record rainfalls in other regions, overwhelming storm drains and sewers. As with UV resistance and freeze-thaw conditions, the need to tackle water recovery and system integration opens up new opportunities for industry.
Fixed Furniture
almost to a monochromatic appearance. Off-whites, pale warm green influenced grays and a soft hint of red create a striking look is transformed in different lights and shadows. The neutral quality of these light wood and stone colors are the perfect transition colors from in to out. Rustic wood has been a staple of the interior flooring market for the past 10 years. Reclaimed woods have been popular for their re-purpose/re-use/recycle characteristics. Textures not only help replicate the grain structure of wood, they can also be used as a way to change the profile image as well. Sweeping cross grain textures in soft undulating waves give the appearance of hand-finished boards, but also provide a new character in traditional settings. Rougher hand-scraped textures need random variations to produce a more one of a kind look. Different plank widths in combination can help to increase this random heirloom appearance. Since 2003, our studio has tracked the colors of interior building products and décor. In 2008, we began to track exterior colors using the same process. Exterior building products like vinyl and pre-cast concrete siding, decking, railing, pavers, planters, fabric, metals, woods and plastics samples were evaluated against our interior data, revealing vast similarities between indoor and outdoor colors. Currently we are preparing our 2013-2015 forecast. Grays, gray-influenced colors, and browns continue to be strong as current colors. Greens also continue and will be mixed with grays and browns to produce new multi-colored effects. Blues begin to emerge as a cooler option to the warm colors in the palette. Beige, tan and caramel in various tones and shade are emerging in greater quantity. – George Gehringer is co-owner and creative director for design consultancy studio Metaphor LLC, Exton, Pa., and former creative director for Armstrong World Industries. Reach him at (610) 363-0376 or geogehringer@comcast.net.
Built-in is not a new idea, but generally it has been left to the contractor or builder to come up with customized solutions. However, we live in an age of systems, where Ikea provides the components and the consumer constructs the furniture. This is also true in our d-i-y world of mass retailers. Customized kits for furnishings, storage, shade, gardening and privacy are solutions consumers seek. They look to building product manufacturers to provide not only material solutions, but lifestyle enhancements.
Shade & Light Control
Shade and light control are a big opportunity for builtins and add-ons. Shade structures, including pergolas, gazebos and pavilions, comprise a $400-million-a-year industry. By integrating materials such as fabrics, mesh and panels, new systems can be created to extend the outdoor seasons.
Color Trends
Over the past two years, we have experienced the successful launch of a whole variety of gray and gray-influenced colors. Currently we are seeing the emergence of a variety of lighter woods and stones in interior flooring, as well as new beige and tan combinations in indoor and outdoor applications. They allow for a graceful transition with the browns that have dominated the market. We see two directions for light color woods. The first is a duplication of spalted woods like maple and pecan. The darker brown, gray and caramel streaks add contrast and variation, making for a more natural looking material. The second look will be in soft wavy multi-color that blends Building-Products.com
RETAIL FLOORING display concept designed by Metaphor LLC. February 2013
The Merchant Magazine
13
Product Spotlight Composite Decking By Brent Gwatney, MoistureShield
Recommend composite decking for harsh climates
C
durability and maintenance issues of wood decking in severe climates, many homeowners are asking their contractors about plastic decking and wood-plastic composites. Although plastics avoid many of the problems of wood decking, market research shows materials such as PVC fall short in looks. In contrast, composite manufacturers have made many strides in expanding their products’ visual appeal (see “A Closer Look” sidebar), making this category an ideal combination of high performance and good looks. ONCERNED WITH
A factor that could hinder some builders from selecting composites is a perception of problems with the materials. Some early product formulations were susceptible to premature deterioration, fading or staining. As a result, it is important for sales staff to understand the differences among modern composites and which type of product performs best. The first factor to consider is the degree to which a composite’s wood fibers are safeguarded from moisture. Manufacturing processes vary. Composite decking that fully encases the wood fibers in plastic stands up
FULLY ENCAPSULATED WOOD FIBERS enable composite decking to perform well, even in applications with direct water contact, such as near a swimming pool or outdoor spa. All photos courtesy MoistureShield
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February 2013
best to water, whether from rain, snow, condensation, waves, or even lawn sprinklers. Contractors can cut and drill such deck boards and railing without compromising their moisture resistance. They can even install the materials directly on the ground or in the water without voiding the warranty. Moisture-resistant composites work well in conventional decks and are also well suited for pool and hot tub surrounds, along with lakeside and coastal installations. When making a color choice, it is important for consumers to consider fade resistance, as all decking fades to some degree from sun exposure. Some composite manufacturers include additional pigments to help offset fading so that exposed boards stay within the same color family over time. Check with the manufacturer for fade resistance details. Another key trait to evaluate with composite decking is its mold resistance. Surface molds do not necessarily deteriorate deck boards and railing, but they do make them look dirty. Some composite brands add mold and mildew inhibitors to ensure their decks continue looking good over time. Stain-resistant composites are also available, which is a strong selling point for homeowners and commercial building owners who frequently serve food and drinks on their decks. – Brent Gwatney is v.p. of sales and marketing for MoistureShield. He also serves on the board of the North American Deck & Railing Association. For more info, visit www.moistureshield.com or call (866) 729-2378. Building-Products.com
A Closer Look at the Latest in Composites Manufacturers have developed several ways to make wood-plastic composite decking and railing capture the good looks of the all-wood decking that consumers favor. Chief among these design features are texture and color. Embossing can produce realistic-looking grain patterns. The realism of embossed grains varies by brand, so it is important for dealers to have samples or displays on hand to show customers. Advanced tinting can match the aesthetics of various wood species. Some composite decking manufacturers add variegated color highlights to mimic the look and pattern of wood species such as tigerwood or walnut. Other hues include grays and earth tones, such as sand and terracotta.
NEWEST COMPOSITE decking from MoistureShield offers advanced tinting in a range of colors, plus realistic woodgrain.
Building-Products.com
February 2013
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15
MARGIN Builders By Geoff Hale, HomeTops
See the light
Deck lights improve margins, close sales
“A
I RESISTED the idea at first, deck lights have become the most profitable thing that we do in our business,” says Doby Franklin, of Franklin & Sons Deckmasters, Tulsa, Ok. Franklin resonates the discovery of other dealers who have realized deck lighting’s ability to brighten margins. Deck lights add value, offer distinction on both vertical and horizontal places, and significantly increase the use time of any outdoor living space. Simple, effective and affordable low voltage installation techniques have eliminated much of the fear factor. For example, Aurora Deck Lighting’s quick-connect plug and play pigtail system makes it easy for the contractor or d-iyer to complete most any project. A wide selection complements any size square post to fit almost any budget. Many offer compliance for IRC’s safe stair lighting requirements. Adding lights to an average deck will add approximately 10% more revenue, but as much as 20% of the profit. “Work less, make more. Lighting has transformed my business,” says Alvin Smith, from Hickory Dickory Decks, Bangor, Me. Equally important is the ability of deck lights to increase job closure rate. “We can’t get out of the neighborhood without landing another job because of deck lighting,” tells Bob Lehman, from Creative Vinyl Products, Baltimore, Md. For contractors and dealers alike, differentiation is critical. The use of deck lighting shows homeowners a higher level of professionalism in design and installation. Upselling with LTHOUGH
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February 2013
lights provides a chance for the customer to beautify their outdoor living space. Custom sizes and style are all in the realm of possibility today. HighPoint Decklighting has the ability to custom design or size any of their broad offerings to complement the need for a larger wall mount or hanging fixture to match any of their smaller side mount, stair or post top styles. There is no limit for lighting opportunity, even when it comes to everything wood. The Nantucket Post Cap Co. manufactures low voltage and solar all wood post caps in 12 different styles and every size up to 20" square. Material choices range from redwood, cedar, mahogany, ipe and PVC. Lighting begets lighting. A portfolio of your work is also mission critical. The more photos of jobs with lighting, the more packages you will sell with lighting. This all enhances your chances of leaving a bigger smile on your customer, especially the female customer who is proven to be making almost 80% of those buying decisions. “Lights are selling our deck packages. Lighting packages are one of the quickest and easiest ways to take a deck from custom to super custom,” says George Drummond, from Casa Decks, Viginia Beach, Va. Fox Home Center started selling deck lights in 1999. This successful Chicago-based building material store’s displays are decorated to the hilt with deck lighting. Fox asserts that homeowners impulsively buy when they see lights. As many as 75% of their decks are sold with lighting. Building-Products.com
Its deck lighting display has achieved a handsome 49 times return on investment. The store has also been able to increase profit margins on standard sized decks by 35% using lights. Even low-cost portable suitcase displays make a difference when used by the contractor in the field. Aurora and HighPoint offer affordable entry level fully functioning units with multiple styles, colors and functions, for as little as $125. The successes for selling lights from well-lit displays are well proven. Barron’s Lumber, Manassas, Va., has sold almost 300 lighting kits from a modest $99 countertop display. The double benefit of a deck lighting display is that light draws attention to whatever it’s affixed to, helping promote post cover and railing sales as well. Deck lighting has candled a bright spot for business. Our lighting manufacturers have increased sales by 80%
garnering more sales month by month, with its benefits of low consumption, long life, and softer warm white presence. Electrical usage is cut by one-twelfth, providing a 92% savings. This less expensive bright spot is gaining ground. In 2010, LED deck lighting sales overall were about 15%. In 2012, they have more than doubled
to 34%. By 2015, they are estimated to be almost 100%. LED offers a triple bang for the buck, as often the upgrade is made affordable with greatly reduced cost in transformer need. You can now power an entire deck with a $49 unit, when it used to require a $250 low-volt transformer to function similar light output. LED options are endless and will continue to propel post top, recessed, strip light, lighted baluster, and paver light sales. Innovative installation tools are already here to greatly reduce contractor labor time and produce crisp, crystal clean installs. Deck lighting will continue to increase in usage as more and more contractors try to differentiate themselves from the competition. And as more and more dealers realize the benefits of displaying lights to grow their sales, LED will continue to fuel interest and acceptance. The propects for a bright future are beaming on deck lighting. – With over 45 years in the building products industry, Geoff Hale is president of deck accessory supplier HomeTops, Whitewater, Wi. Reach him at ghale@hometops.com.
POSTS TOPS, such as this one from Aurora Deck Lighting, are an increasingly popular, margin-expanding add-on to deck sales.
over the past five years in a troubled economy. This is driven by customer demand and the increase in awareness, with more manufacturers now offering lights. “These days, people are spending more time than ever before on their terraces, decks and patios, and, since they’ve become an extension of the house, they need to be lit up,” says Kathy Held, from South Dade Lighting, Miami, Fl. More design options and more lighting alternatives will continue to fuel growth in this category. Quality fixtures made of solid copper, brass, stainless steel, and bronze continue to raise the bar. The addition of new finishes and new shapes will freshen customer appeal year after year. LED is showing the fastest growth in this category. The green monster is Building-Products.com
February 2013
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PRODUCT Spotlight Eovations Composite Technology
New composite technology promises improved building products for the future
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LLC, Bay City, Mi., has patented a new composite material that can replace wood, wood-plastic composite, plastic, and metal. Now, the company wants to license the technology for use in a wide range of structural and non-structural applications. “The possibilities created by Eovations technology extend significantly beyond traditional applications for wood and wood-plastic composites,” says Dick McBride, general manager of lead investor Universal Forest Products, Grand Rapids, Mi. “This remarkable lineal material can be used almost anywhere a lighter, stronger, longer-lasting material is needed.” Building materials that can be produced using Eovations technology include decking, railings, porch planks, deck substructures, roofing, exterior trim, siding, soffits, door frames and jambs, window components, PVC lineal reinforcements, porch and patio enclosures, decorative flooring, and flexible concrete forms. The new technology uses a proprietary extrusion/drawing process to combine mineral particles with a thermoplastic matrix, creating a fully fibrous and molecularly oriOVATIONS
NEW COMPOSITE can be produced in a wide range of textures and colors to meet specific appearance and use needs. (Photos by Eovations)
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NEW TECHNOLOGY promises to replace wood and composites in a variety of building applications, such as decking and railing.
ented lineal composite system. The appearance of the finished material can be customized with color and a variety of surface textures. “The resulting material equals and, in some cases, improves upon the physical strength, dimensional stability, environmental durability, aesthetics, and workability properties of wood, while overcoming the strength and other limitations of wood-plastic composites,” says Claude Brown, vice president of technology & innovation at Eovations. In addition, the “material can be machined, milled, cut and drilled using basic carpentry skills and common woodworking tools,” says Brown. “Fastener acceptance and hold is excellent using conventional nails, screws and staples. Variations of the composite readily accept common paints, allowing durable, attractive finishes to be applied during product manufacturing or in the field.” Licensees choosing the application model obtain the use of composite material produced by Eovations. The production-licensing model enables licensees to utilize Eovations’ process technology in their own operations, to produce composite material independently. Licensing under both models is for pre-defined applications. Building-Products.com
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COMPETITIVE Intelligence By Carla Waldemar
Midwest dealer charts new course
DO IT BEST-prodded reconfiguration of Wisconsin dealer moved the service counter to the back of the store, tools to the middle, and dollar items to the front.
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ENNIS DORN IS CUTTING BACK on life’s more fleeting pleasures—like golf—in order to devote himself 110% to his all-consuming passion. It’s, ahem, his store. “I love being a merchant!” sings the c.e.o. of Portage Lumber, Portage, Wi., which Dennis co-owns with his brother. “I love fussing with margins, looking at products. Whenever I go grocery shopping with my wife, she’s looking at the produce while I’m looking at displays.” And, like the golfer he recently was, he’s constantly working on improving his game. He’s reexamined the company culture, re-aligned the store, and rethought his consumer base, which he recently shifted from almost exclusively pros to serving retail consumers as well. Not a minute too soon. The brothers bought the yard from their father, an agreement enacted when Dennis was 35 and completed, he jubilates, on the eve of his fiftieth birthday (he’s now 62). Their father, still chipper at 87, had been hired in 1953 to run the start-up yard as a 28-year-old lad with an eighth-grade education and two little boys to support. Nonetheless, he held out for part-ownership, and to seal the deal, plunked down $10,000 he’d astutely managed to save up. Soon after, in answer to popular demand, a construction division was launched. Faced with a choice not long ago—
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kick it up, or stick with the core business and get out?— “We decided to do what we do best and do it even better, rather than fractionalize and lose our core focus,” Dennis relates. Just in time, turns out. Moments later, the construction-busting recession hit. As happened everywhere, the picture became bleak. “After what had been a manic euphoria, the last couple of years have been the most challenging in my memory,” Dennis notes about the downturn—then continues on his mission to combat it So, how to cope with the freefall? Retrain your staff, reevaluate your product mix and margins, realign your store, expand your retail space, and reach out for a new niche of customers—factors Dennis thinks about 24/7 anyway, even in his sleep. “If you do things the same old way, you’ll keep getting the same old results,” he knows. But costly improvements weren’t in the books, either, as he kept insisting to the folks at Do it Best, who offered counsel. Changes had to deliver a bang for the buck, and for not that many bucks indeed—a big ROI for a very modest investment of capital. “Things we could afford, on a smaller customer base. We’re not Madison; we’re not Chicago,” he does a reality check on the town’s demographics. Dennis sized up his competitors. Never mind that his was the sole lumberyard in town, there were Menards and Home Depot 20 minutes distant. But that’s not where he turned his gaze. Competition, this marketing master understands, consists of every outlet siphoning shoppers’ disposable income—groceries, restaurants, phone stores, what have you. “We didn’t want to be the coolest lumberyard; we wanted to be the coolest store—the best shopping experience,” he’s most emphatic. “We had to fight for every dollar we got. For instance, we used to carry two types of gloves; now, it’s 30. We looked where our employees and our family members shopped—for clothes, cars, electronics, and on the Internet.” And that propelled improving…well, everything: margins, sales and, most of all, the total customer experience. To jumpstart improvements, Dennis asked around: What can we do better? Differently? Easier? “It scared the hell out of me, to be honest, but I realized there were two things necessary—to get more information to our customers, via a website, and to get more PK training to our employees, which was challenging for us.” Building-Products.com
GROUPING and better positioning of design departments increased sales of floorcoverings, paint and other products.
An inspiration arrived, out of the blue—or rather, out of an email. Black & Decker alerted him to a clever new gyro wrench. Amazed, he walked around with his iPhone, showing its possibilities to his 28 employees—voilá: no need for a special conference room and time off from work for product training. “Training consists of two parts,” he instructs: “cultural and anecdotal. And we’re working on it. For instance, like Walgreen’s pushes candy bars at the register, we recently put in ice scrapers and trained the cashiers in suggestive sell—to ask customers if they cared to purchase one. The year before we started that, we sold nine. This year, in just one week, we sold 32—and that’s without any snow so far! It’s a little thing, but it adds to the bottom line. “ “It’s our job to train staff to do that,” he emphasizes: “to train cashiers to be salespeople.” He instructs them, in going beyond their basic job description, to spot customers who need help. As a carrot, he makes it part of their compensation. “To a base of $10/hour, they can earn 5% of the margin, which can add $3 an hour to their salary—or, double it, if they’re good. It’s now a different culture; you don’t just show up, you take care of our customers and are always looking for the next sale. Let customers know they’re special, and they’ll keep you top of mind. That’s the part of the culture we need to work on,” he reminds himself, and us. Dennis isn’t shy about asking for a sale, himself, either. At a party recently he ran into Susan, an acquaintance who mentioned she was thinking of remodeling her kitchen. “We’d love to talk with you,” said Dennis—who ended up with the $134,000 account. In gratitude—or call it ‘pay it forward’, he sent her a $350 set of knives she’d been coveting as a thank-you gift. The next year, Susan bought a lake home and called to schedule another kitchen job— another $100,000 in the company’s pocket. Dennis knows it’s smart to solicit ideas from those who have their customers’ voices tuned in—no, not managers: the cashiers. These key people suggested ways to speed up and simplify procedures, such as credit-card transactions. They reported unstocked items customers had been asking for. He’s also rethought the practice of a Christmas bonus— noting that some employees don’t celebrate the holiday— and made it instead an annual bonus, given out during a Building-Products.com
performance evaluation on the anniversary of hire, $20 for each year of service. And for Christmas, employees will be invited to a party wherein they can shop the store at cost that night. “The cost for the company is minimal, but it’s seen as a huge gesture by our employees,” Dennis explains. Another “free” improvement: Two years ago, Portage had added an 8-foot display of $1 items positioned, as Dennis says, “in a low-rent part of the store, the weakest location. We offered tape measures for $1, and sold 19. Last year, I moved them to a drop box up in front to see what would happen. We sold 628. We did it again this year and sold nearly 1,000.” A small sales improvement like this not only increase profits, but, as Dennis explains, “help create a value statement that fights the ‘expensive’ image of an independent store—all with one goofy, little product.” Another huge improvement that didn’t require a bank loan was Do it Best’s suggestion of realigning existing space to get the biggest effect for the least amount of money. “We had a contractor sales area, a rental area, and a retail space, but were staffing too many people because of layout. Now, the service counter has been moved from the front of the store to the back so the nearby departments could be manned by fewer personnel.” Yet another move that paid off was changing the positioning of tools that proved too close to the front of the store. “We’ve grown the section substantially, but also moved it halfway back so it gives a good visual impression as your eyes move through the store—it looks more impressive.” So do the flooring, K&B and paint departments nowadays. “They used to be tucked into corners, but they’re now up front, and adjacent. In fact, one customer complimented us on adding floor coverings to our offerings. (We’d been selling them for 35 years but she’d never noticed them before the move.) We’d had the big-ticket items tucked away in the back—but not anymore!” he’s learned. Just in time… because contractor sales had dropped off significantly. “Now, they’re starting to pick up again, but all margins are tight. So, the new concentration on retail was very important to offset that with a 5% to 7% margin increase.” After September’s soft re-opening, which has driven a nice increase in sales, “People are congratulating me, saying ‘You’ve got it all figured out.’ But I don’t have all the answers,” he says. “There are lots of questions, lots of challenges left –but also, so many opportunities. But I love doing it! As a wise person once said, ‘No matter what the mission, the journey should be joyful.’” That’s Dennis’s mantra, too. “I love a party. But,” he can’t help underscoring, “bottom line: It’s a business.” Sounds like, for this man, they’re one and the same. So, who needs golf, anyway, when you’re having this much fun?
Carla Waldemar cwaldemar@comcast.net February 2013
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OLSEN On Sales By James Olsen
The quality of our failure
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makes $50K a year looks at the seller making $200K a year and says, “That guy is a machine! I wish I had his account base and his gift of gab… I’d be killing it… I guess I’ll never be a natural…. I hope I get lucky and get some big accounts… (like him).” This logic is flawed. The $50K salesperson calls 100 people and gets 98 no’s. The $200K seller calls 100 people and gets 92 no’s. Both are in the “high-rejection” business, but the master seller is getting four times as many yes’s as his less remunerated competitor. It just seems to the struggling seller that life at a higher income is easier. It’s not easier. The master seller is in the 92% rejection business! The master seller receives more no’s than the journeyman seller because he asks for the order more. He has a higher quality of failure. HE SELLER WHO
Every Call Is a Marketing Call
Think about your last (major) purchase. How many times had you seen that car, golf club, or cruise advertised before you made the decision to buy? Advertisers say we have to see an ad seven times before it makes an impression on our brains. Fifty percent of salespeople call back once (which means 50% don’t even call back!). Twenty-five percent call back twice. Only 10% call back more than twice! Per the rules of advertising, only 10% of salespeople call enough to make an impression on new customers. (How many call seven times?) Every call we make is a marketing call. Within those marketing calls there will be sales calls, but every call we make sends a message to our customers and our industry about who we are. For example: Seller: “I’ve got a great deal on a block of studs. They are selling well. We had 20 and we are down to 10. How many would you like? Customer: “I don’t need any right now; I’m full up.” Seller: “What are you buying?” Message: I’m here for the order. Seller: “I’ve got a good deal on studs… etc.” Customer: “I don’t need any right now… etc.” Seller: “What is your current stud position? How are sales on studs? What is your average cost on studs? When will you be buying back in? What’s the best you’ve seen on studs in the last week?” This seller asks detailed questions about the customer’s business. Message: I am your partner. I am not (just) here to sell you something. I want to get to know you and your
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business. Many sellers send “I’m just here for the order” messages and wonder why they are treated poorly. The opposite is also be true. Many sellers are trying to be so congenial—whatever you say, Mr. Customer!—that they send the message that they don’t want the business. They confuse unctuousness with being a partner.
Account Development Progression
• They take our call. • They give us some time on each call. • They sporadically buy. • They buy on a regular basis, making us a secondary or tertiary supplier. • We become their #1 supplier. In terms of business development, we have to become the secondary or tertiary supplier with many and continue quality work until we become the main supplier to a few more. This is the beginning of many great sales careers— secondary supplier to many. It takes time to become a number one supplier with anyone. What does that mean to us building sales careers? It means that while we are building our business, every call is being judged and measured by our account base—even when they don’t buy.
Want Don’t Need
Every time we contact a customer we send a message to them and ourselves. Our potential customers and our own psyche are listening to every word. The best message for us as sellers is, “I want your business, but I don’t need your business.” We want to be confident without being arrogant. We cannot appear needy—customers and other humans run from the needy—they make us feel uncomfortable. “I don’t need your order. I’ve got plenty of orders (again, without being arrogant).” Message: “What I need are more partners. Do you want to be my partner?” James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
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PATTERN REPEATS EVERY 37- 3/8"
EVERGRAIN® ENVISION® PATTERN NEVER REPEATS ACROSS ENTIRE BOARD
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Challenge 2: Wood Grain Beauty LEADING COMPETITOR
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COMMERCIAL LIMITED WARRANTY
LABOR LIMITED WARRANTY
LEADING COMPETITOR
25 YEARS
10 YEARS
0 YEARS
EVERGRAIN & EVERGRAIN ENVISION
20 YEARS
20 YEARS
5 YEARS
EVERGRAIN ENVISION
Challenge 2: The competitor’s extruded board features an embossed pattern on the surface of the board. EverGrain’s compression molded process creates a unique grain for dramatic and lasting beauty.
Challenge 3: Finally, compare limited warranties. EverGrain offers a 20-year commercial Limited Warranty and covers both materials and labor for the first 5 years of the Limited Warranty.
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©2013 TAMKO Building Products, Inc. TAMKO, EverGrain and Envision are registered trademarks of TAMKO Building Products, Inc. *This comparison is based on the leading competitor’s standard limited warranty compared to TAMKO’s Limited Warranty. To obtain a copy of TAMKO’s Limited Warranty, visit us online at tamko.com or call us at 1-800-641-4691.
GREEN Retailing By Jay Tompt
Your step-by-step guide to going green T
HIS IS AN INTERESTING time to be in this business. In fact, I would submit there has never been a more interesting time because, not only are conditions changing, but change is coming at us from about every possible angle. But if there’s one thing we can count on, it’s that the march toward greener buildings, technologies, products, and materials continues unabated. There are signs that the housing market is picking up, generally, and more than likely the uptick in green will be significantly greater. This is good news for green retailers. Is your company on board yet? Has the greening of all things housing related boosted your bottom line? If not, fear not. It’s not too late to get positioned to profit from this trend, but it will require change. It’s easy, if you take it step by step. Step One: Educate yourself and your staff, from the boardroom to the backroom, floor associate, buyers, pro sales, cashiers. Learn the language of green and, most importantly, the requirements of your customers. Serving builders and remodelers? Get up to speed with LEED and other certification schemes. Some products and materials meet green standards because of their characteristics, their components, their functionality, or simply by the way they’re used in a green building project. Proven fact: Educated staff sells more green products and materials. Step Two: Stock green products and materials. You can’t sell what you don’t have in the warehouse or in the catalog. What are your customers looking for? What works in your region? Again, ask your customers and get acquainted with your local USGBC chapter. Product certifications provide a good guide and attending at least one GreenBuild event will get your buyers on the way. But your customers will tell you where their interests lie. Serve them well and you can’t miss. Step Three: Communicate. In the store and in the yard, take the basic step of deploying shelf talkers, labels, posters, hang tags—whatever you need to do to identify for your customers the green options in every category, their features and benefits. If you’re using circulars, be sure to promote these prod-
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ucts and materials, display their certifications, and write copy that educates and establishes your credibility. If you have a more robust marketing budget, develop clear and honest advertising that positions your store as the place to go for sustainable, energy efficient, water saving, less toxic, LEED credit-earning products and materials. Finally, if you have the wherewithal, write news releases about your newsworthy green developments and distribute to the publications your customers might be reading, both online and offline. Step Four: Educate your customers. If you’ve gotten to this step, chances are your customers are beginning to look to you as a source of knowledge and expertise. Hosting product knowledge events and skills workshops will strengthen your customer relationships and cement your growing reputation as the green “go-to” source. These kinds of activities, whether conducted in-house or elsewhere in your community, should tie in nicely with your marketing efforts. Grasping the green building opportunity takes some honest effort and success is not guaranteed. It’s a free and competitive market, after all. On the other hand, sitting passively on the sideline pining for the old days is not an attractive option. Embracing green building as the new normal can infuse your organisation with a sense of purpose that can translate into a better experience for your customers and perhaps a few more sales at the end of the day. All you need to do is start taking it step by step. Jay Tompt Managing Partner Wm. Verde & Associates (415) 321-0848 info@williamverde.com www.williamverde.com Building-Products.com
Arizona Wholesaler Cooley Files to Liquidate
Cooley Forest Products parent Cooley Industries, Phoenix, Az., has filed to liquidate under Chapter 7 bankruptcy protection. Launched in 1945 as Cooley Wholesale Lumber, Holbrook, Az., the company also operated Dynamic Transload Services and Dynamic Logistics. Its Dec. 27 bankruptcy filing lists assets of nearly $3.5 million and liabilities of almost $9.9 million.
Pacific Lumber Consolidates
Pacific Lumber & Truss is relocating its headquarters from Hillsboro, Or., to consolidate with its millwork plant in Lake Oswego, Or. The move transfers 25 positions to Lake Oswego, including management, administrative, sales and logistics. “Having all divisions working together is a big step for us,” said president Jim Morse. As part of the move, Pacific Lumber has also opened a new design and retail center at the Lake Oswego site, with a grand opening set for March.
Century-Old Yancey Yard Changes Hands
Yancey Lumber has sold its 103year-old facility in Patterson, Ca., but will continue operating its yard in Newman, Ca. New owner Ramon Zavala Ramirez has renamed the yard Patterson Lumber, but retained most
of the staff, including manager Harry Felix. The previous owners—Kern Hunewill and seven members of the Yancey family—had considered closing the yard and converting it into a warehouse, but Felix helped broker a deal with Ramirez, an agribusiness foreman who owns rental properties managed by Felix. “I couldn’t see this city going without a lumberyard,” Felix said. Yancey co-owner Tom Yancey said, “We had a hard time keeping that yard going, so it seemed the best thing to do would be to focus on Newman.”
Boise Cascade Begins IPO
Boise Cascade LLC, Boise, Id., has begun an underwritten initial public offering of 11,764,706 shares, to be sold by prospectus only. The company will be converted to a corporation and renamed Boise Cascade Co. It has also been approved to list its common stock on the New York Stock Exchange, under the symbol “BCC.”
OSH Sues Home Depot Over Exclusive Hardware Deals
Orchard Supply Hardware, San Jose, Ca., has filed suit against Home Depot, alleging that the Atlanta, Ga.based chain has struck exclusive, unfair deals with several hardware suppliers. OSH claims Home Depot announced in June 2012 that it aimed to become the only “on-the-ground
retailer” for certain hardware products. Within weeks, according to OSH, two of its longtime power tool suppliers—Makita USA and Milwaukee Electric Tool Corp.—cut of shipments. Both suppliers are named in the suit. OSH alleges the exclusive deals will cost it $2 million. Home Depot maintains that it is committed to fair competition.
DEALER Briefs Dunn Lumber, Seattle, Wa., has acquired Parker Lumber, Bothell, Wa., as its 12th location, renaming it Parker Lumber East.
Big Creek Lumber, Davenport, Ca., this month is installing new sales software at its five retail stores in Central California. Jarms True Value Hardware, Cheney, Wa., is relocating after 35 years to a larger, 22,000-sq. ft. facility. Franklin’s Ace Hardware , Scottsdale, Az., has been opened by Brett Franklin in a storefront that previously housed an Ace Hardware that closed last year. Construction Supply LLC , Goodyear, Az., has added an adjacent 6,000-sq. ft. rebar fabrication facility— the first phase of a manufacturing site that eventually will expand to 10 acres. BMC , Boise, Id., has selected Orgill as its new hardlines supplier, replacing True Value.
In addition, BMC was named 2012 Company of the Year by the Eastern Idaho Home Builders Association and Vendor of the Year by the nonprofit Homes for Hope.
Bridgetown Window & Door , Portland, Or., has been
launched by Kevin Betker, Jeremy Powers, and Andrew Haslam.
Anniversaries: Gray Lumber Co., Tacoma, Wa., 110th … Disdero Lumber Co., Clackamas, Or., 60th … Belco Forest Products, Shelton, Wa., 35th … Malheur Lumber Co., John Day, Or., 30th … Albuquerque Hardwood Lumber, Albuquerque, N.M., 25th …
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Building-Products.com
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AVA I L A B L E F R O M
Tacoma 800.346.9253 Eugene 800.742.0184 Sacramento 800.952.5616 Stockton 800.672.2130 Fresno 800.292.0704 Fontana 800.647.7762 Santa Clarita 800.321.0728
EverGrain® Envision™— the only compression molded and bonded composite deck board. Now the same natural beauty of EverGrain® Composite Decking is available in a bonded composite deck board with a whole new level of performance. EverGrain® Envision™ is made with an added layer of protection—bonded in the compression manufacturing process for durability and resistance to delamination. So now you can enjoy the natural look and texture of wood in a product that takes performance a step further. Visit tamko.com/envision to learn more. ©2013 TAMKO Building Products, Inc. TAMKO and EverGrain are registered trademarks and Envision is a trademark of TAMKO Building Products, Inc.
SUPPLIER Briefs
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California Redwood Co. eliminated the 45-worker “flex crew� at its Korbel, Ca., mill Jan. 17. Mount Storm Forest Products, Windsor, Ca., is now distributing Thermory thermally modified hardwood decking. Rugby Architectural Building Products is now distributing Samsung Staron solid-surfaces throughout the Northwest U.S., including Alaska, from its five branches in the region—Seattle and Spokane, Wa.; Portland, Or.; Boise, Id., and Salt Lake City, Ut.
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O’Connor & Associates, Carpentersville, Il., is now representing Integrity Composites’ DuraLife decking and railing products in the Midwest and into Colorado, New Mexico, and Arizona. Jeld-Wen, Klamath Falls, Or., has received Evaluation Report ESR-3043 from the ICC-S for its MiraTEC treated exterior composite trim—a first for wood composite trim. Beacon Roofing Supply, Peabody, Ma., has entered Northern California with its acquisitions of roofing distributors Ford Wholesale Co., Oakland, Sacramento and San Jose, Ca., and Construction Materials Supply , Livermore and Sacramento, Ca. Ford’s former president, Jim Ornellas, and CMS’, Peter Clark, will stay on under Beacon. Sylvan Products, Portland, Or., was awarded a second option year to supply dimensional lumber to the U. S. Defense Department.
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Columbia Forest Products, Greensboro, N.C., was named 2012 Vendor of the Year by Phillips Plywood Co., Pacoima, Ca. Weyerhaeuser Co., Federal Way, Wa., has revamped its wood products website at www.woodbywy.com. Spruce Computer Systems has incorporated new features into its SpruceWare.NET Release 8, to help dealers in California cope with the state’s new 1% lumber products tax.
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February 2013
FIBERON’S redesigned website (www.fiberondecking.com) features a new DIY Deck Connect design tool that allows consumers to take a photo of their home and then access a complete portfolio of products to design a virtual, realistic-looking deck.
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Blaze Levels Colorado Sawmill
Alpine Lumber’s La Jara, Co., sawmill was destroyed in a 3 a.m. fire Jan. 5. Owner Mike Hostetter intends to rebuild as quickly as possible. “We are doing our best to keep serving our customers and keep them supplied by outsourcing from other mills,” he said. Although the cause is under investigation, Hostetter said there was no sign of arson and speculated that the blaze may have been sparked by an electrical malfunction brought on by recent cold weather conditions.
Plywood Producers Face Challenges Meeting Global Demand
International plywood demand is expected to top 85 million cubic meters by 2018, owing to emerging markets across Asia, Latin America, and Europe, according to a new Global Industry Analysts study. Consumption is largely dependent on the state of the construction industry, which has experienced sluggish growth in developed countries over the last several years. Asia-Pacific, the U.S., and Europe account for a lion’s share of total global plywood consumption. China dominates the global market for plywood usage, consuming more than half of all plywood used in the AsiaPacific region. The nation has evolved quickly over the past decade from an industry largely focused on addressing domestic market needs to one increasingly catering to global demand. China is currently the world’s largest producer and exporter of plywood. The nation is, however, garnering mixed results in domestic demand, with the non-
residential and social housing sector growing at a healthy pace, but housing reeling under severe pressure due to government policies and the resulting deceleration in housing sales, economic disparities, and minimal construction activity. Asia-Pacific markets, excluding China, should post the fastest growth through 2018. In Japan, demand for wood products is expected to increase, as the country begins to rebuild earthquake-devastated areas. However, the delay in reconstruction work, owing to the longer time taken to clear debris and the resulting build-up of plywood inventories, will moderate the pace of growth in the years to come. In the U.S., after-effects of the recent economic crisis continue to linger over the construction industry, despite the numerous initiatives undertaken by the government to assist the recovery of the sector. Although the plywood sector witnessed a marginal recovery in demand in 2011, future growth in the market primarily relies on the recovery of the housing sector, which is poised to readily absorb curtailed as well as new capacity. In Europe, the escalating macroeconomic uncertainty continues to dampen business confidence, thereby delaying the pace of recovery across the construction sector. The region also faces increasing threat from rising imports of cheaper plywood products, particularly from China, Russia, Uruguay and Ukraine. Besides restricted construction spending, another challenge faced by the plywood market is increasing competition from alternate materials such as OSB and MDF. However, plywood remains a preferred option for various applications due to its quality.
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February 2013
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Plastic, WPCs to Lead Comeback in Decking U.S. demand for decking is growing only 2.4% annually, but demand for wood-plastic composite and plastic lumber versions will grow at double-digit rates, according to a new Freedonia Group study. Wood decking will remain the market leader, accounting for 2.73 billion linear ft. by 2016, out of a total U.S. market of 3.3 billion linear ft. But wood decking demand will grow only 0.9% annually between 2011 and 2016.
Plastic decking will see the most rapid growth, thanks in part to the availability of cellular PVC decking that better resembles natural wood. Plastic decking demand will grow 15.2% per year, reaching 150 million lineal ft. by 2016. Wood-plastic composite decking will grow 11.4% annually, reaching 420 million lineal ft. by 2016. The residential market consumed 61% of decking in 2011, a lower share than the historical average. The
depressed level of housing completions suppressed demand, as did an unfavorable lending environment that made it more difficult for homeowners to take out home equity loans, a common method of funding such projects as deck installation and replacement. Going forward, residential decking demand is forecast to rise at the fastest pace of all markets. An expected rebound in housing completions will spur gains in the new residential segment, while more flexible credit conditions should support upgrades and repairs.
APP Watch
Application: SST DEALER LOCATOR Produced by: Simpson Strong-Tie Price: Free Platforms: iPhone, iPad, BlackBerry, Android, and other mobile devices Customers on the go can now quickly and easily locate dealers carrying Simpson Strong-Tie products—as well as identify which SST product lines each dealer stocks. Using the mobile app, customers can get instant results for dealers within a specific zip code, and can map to a location in seconds. They also can visit dealer websites, instantly copy store information to the clipboard, and dial a dealer’s phone number directly from the iPhone. Download from the Apple App Store or from www.strongtie.com/mobiledl
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OSH Going Urban in L.A.
Orchard Supply Hardware will close its Hollywood, Ca., store early this year and begin construction this spring on an urban-format location on nearby La Brea in Los Angeles, Ca. The new store will feature a slightly smaller footprint of 30,080 sq. ft. of indoor selling space, 3,800 sq. ft. of outdoor nursery and garden space, rooftop parking, and a product mix tailored to the local area—with greater emphasis on small garden plantings, paint, patios/BBQs, repair,
and home maitenance. “We’re excited to bring our neighborhood store format to those who live and work in the Mid-Wilshire area of Los Angeles, while continuing to serve Orchard’s existing Hollywood store customers in a significantly enhanced shopping environment,” said president and c.e.o. Mark Baker. OSH is also planning to add an urban store in San Francisco, Ca., late this year.
APA, WCLIB Pick Up for AITC
The American Institute of Timber Construction is dissolving after 60 years, moving its glulam certification operations to the West Coast Lumber Inspection Bureau and transferring its three American National Standards to APA–The Engineered Wood Association. WCLIB absorbed staff members of the AITC inspection bureau and began certifying glulam for AITC producers Jan. 1. It will also continue using the AITC quality mark. APA is now managing ANSI A190.1 (for Wood Products, Structural Glued Laminated Timber), ANSI 405 – 2008 (for Adhesives for use in Structural Glued Laminated Timber), and ANSI 117 (for Structural Glued Laminated Timber of Softwood Species). “APA has had a good working relationship with AITC for many years. We’re pleased to take the responsibility for these standards, which are vital to the glulam industry,” said APA president Dennis Hardman. “We’re taking steps to ensure a smooth transition of the standards committee and to provide uninterrupted support to the industry with up-to-date product standards and design specifications.”
Rayonier Selling Wood Products Unit to Interfor
Rayonier, Jacksonville, Fl., has agreed to sell the assets of its Wood Products business to International Forest Products, Vancouver, B.C., for $80 million. The unit, based in Baxley, Ga., consists of three lumber mills located in Baxley, Swainsboro and Eatonton. As part of the deal, expected to close in the first quarter, Interfor agreed to hire all 260 current Wood Products employees. “This sale represents another key move in our strategy to fully position our manufacturing operations in the specialty chemicals sector,” said Paul Boynton, Rayonier chairman, president and c.e.o. “We are delighted with this opportunity to transition our Wood Products operations to a worldclass company focused on lumber and wood products manufacturing. Rayonier has enjoyed a long association with Interfor, supplying their lumber business in the Pacific Northwest for many years, and we look forward to expanding that relationship into the Southeast.”
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ASSOCIATION Update Mountain States Lumber & Building Material Dealers Association has adopted the theme “Just Keep Swingin’” for its annual Products Expo March 7-8 at the Denver Merchandise Mart, Denver, Co. West Coast Lumber & Building Material Association is organizing golf tournaments for Southern California and for Northern California. The first takes place April 11 at Black Gold Golf Club, Yorba Linda, followed by the associates/ dealers tourney June 13 at Rancho Solano Golf Course, Fairfield. National Lumber & Building Material Dealers Association will hold its annual spring meeting and legislative conference March 18-20 at
the Crystal City Marriott, Arlington, Va. Political analyst William Kristol, a Fox News contributor and editor of The Weekly Standard, will speak at the LuDPAC fundraising luncheon. In addition to association committee and board meetings, Capitol Hill appointments will be set up by local federated associations between NLBMDA members and legislators and key federal agency officials to discuss the industry’s policy priorities in Washington. The conference will culminate with a reception for members of Congress and their staff on Capitol Hill. Once again, the conference will take place jointly with the Window & Door Manufacturers Association, providing a wealth of networking opportunities.
Western Wood Preservers Institute is gathering for its winter meeting Feb. 28-March 3 at the Embassy Suites Downtown, Portland, Or. International Wood Products Association will kick off its April 1719 convention at Westin Bayshore, Vancouver, B.C., with a golf tournament. Other events are an awards program and past president’s luncheon, appreciation lunch, and a closing banquet and dinner cruise. Hardwood Manufacturers Association will gather March 11-13 at Charleston Place Hotel, Charleston, S.C., for its national conference and expo. On March 11 at the same location, Southern Cypress Manufacturers Association will convene its annual meeting. National Hardwood Lumber Association has drafted former Dallas Cowboys quarterback Roger Staubach to keynote its annual convention and exhibit showcase Oct. 2-4 at the Omni Fort Worth Hotel, Fort Worth, Tx. Structural Insulated Panel Association has scheduled its annual meeting and conference for April 2-5 at Loews Ventana Canyon Resort, Tuscon, Az. American Wood Protection Association will hold its 109th annual meeting April 28-May 1 at the Sheraton Waikiki, Honolulu, Hi. Activities include a supplier’s showcase, Hacker’s Classic golf tournament at the Turtle Bay Golf Club, and Pickler’s Prance 5K Fun Run/ Walk.
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MOVERS & Shakers Roy Bonham retired from Coos Head Forest Products, Coos Bay, Or., Jan. 31 after 43 years in the industry, the last 27 with Coos Head. Ralph Panttaja has been named general mgr. of Golden State Lumber, Stockton, Ca. Danny DellaSantina succceeds him as general mgr. in San Rafael, Ca. Kurt Nelson, ex-Tumac Lumber, is now sales & inventory mgr. for cedar & Douglas fir at Nu Forest Products, Healdsburg, Ca. Dennis Olsen has joined Central Valley Builders Supply, St. Helena, Ca., as product line marketing mgr. Steve Hoehne, ex-S-5 Metal Roof Innovations, has rejoined BMC, Colorado Springs, Co., as Colorado market EWP operations mgr. Donald “Scott” Church, ex-Conrad Forest Products, has joined the sales team at Redwood Empire, Morgan Hill, Ca. Kurt Liebich, president and c.e.o., RedBuilt, Boise, Id., has added the duties of president and c.e.o. of sister company Wood Resources LLC, Olympia, Wa., and group
Dale Miles, ex-Viking Door & Window, is new to sales at Orepac Building Products, Sacramento, Ca. Marc Marcoux, ex-Keymark Enterprises, is now a product mgr. with Simpson Strong-Tie, Denver, Co. Ian Griffin is new to outside sales at Pacific Coast Building Products, Phoenix, Az. Chris Breslin has joined Galleher Inc., Santa Fe Springs, Ca., as national sales director for Monarch Plank. Krista Roschek has been named western regional mgr.-BMD sales at Solatube International, Vista, Ca. Robert Goin, ex-MJB Wood Group, has joined Valspar’s Wood Coatings Group as technical sales rep for Northern California. Dan Ford, Henry Co., has been promoted to West region v.p.-building envelope systems. Lyle Shimazu, ex-Trulite Glass, is the new operations mgr. for CustomBilt Metals, Honolulu, Hi. Missy Williams has rejoined Spenard Builders Supply, Lakewood, Wa., as a logistic analyst. Lee Martucci has joined GAF, Wayne, N.J., as a Denver, Co.based product mgr.
executive of wood products for parent Atlas Holdings, Greenwich, Ct. Former Wood Resources chief Richard Yarbrough is now chairman, replacing William Corbin, who remains on the board as chairman of the executive committee. Patrick Towle, ex-Guardian Building Products Distribution, is new to sales at Weyerhaeuser, Phoenix, Az. Dennis Myrick, ex-Grainger, is now store mgr. at Hills Flat Lumber, Grass Valley, Ca. Mike Parr and Preston Johnson are new traders at Patrick Lumber Co., Portland, Or. Martin Jaramillo, ex-Evolution Window & Door, is new to window & door sales at Bruce Bauer Lumber & Supply, Mountain View, Ca. Edward Bosco is a new market sales specialist at White Cap Construction Supply, Temecula, Ca. Harmon Meeker is now production supervisor at Milgard Windows & Doors, Tacoma, Wa. Chris Fawkes is production supervisor in Simi Valley, Ca.
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Jim Reininger has joined Do it Best Corp., as Bozeman, Mt.-based territory mgr. for Montana and Wyoming. Josh McLaughlin is territory mgr. in Albuquerque, N.M. Brian Christophel is new in Fort Wayne, In., as assistant merchandise mgr.-global sourcing. Tom Anderson has been appointed to the board of BlueTarp Financial, Portland, Me. Will Porter is now chief financial officer. Michelle Kam-Biron, ex-WoodWorks, has been named director of education for the American Wood Council. Monique Hanis has joined the Sustainable Forestry Initiative, Washington, D.C., as chief operating officer and v.p. of marketing & communications. Christopher Cysensky, BMC, Tacoma, Wa., was recognized as the 88-unit chain’s Platinum Salesman of the Year. Hiram Cheep is now corporate recruiter for Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Lumber Wholesalers Poised to Emerge from Darkness
The wholesale lumber industry is turning the corner, following more than five years of declines, according to a new forecast by IBISWorld. “Residential construction is the largest source of demand for lumber wholesalers,” says IBISWorld analyst Sean Windle. “Therefore, with the collapse of the housing bubble in 2007 and subsequent recession, demand for industry products fell significantly.” From 2008 to 2013, lumber wholesalers’ revenue fell an average of 2.0% per year to $83.5 billion. But, buoyed by recent renewed growth in housing, revenue is expected to rise 7.5% in 2013. Profit margins for the average lumber wholesaler have remained stagnant, although profitability should experience an uptick in 2013, thanks to strong demand and strong growth in lumber prices. “Falling profit margins and fewer sales forced some operators to exit the lumber wholesaling industry,” Windle says. IBISWorld estimates the number of wholesale lumber businesses in the U.S. declined 0.5% annually over the last five years to 5,895 in 2013. Employment also fell, an average 2.9% per year to 118,911 workers. Building-Products.com
February 2013
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ONDICH On Sales By Stephen Ondich, Commercial Forest Products
Is it hypocritical to hate telemarketers?
I
I rubberneck while passing car wrecks, I’m strangely fascinated by horrible telemarketing calls. Sometimes I empathize with the caller. We’re both in sales, right? Not wanting to be rude, I let them plow through their opening lines. The calls all sound something like this: N THE SAME WAY
Ring Me: Commercial Forest Products, this is Steve. How can I help you? TM: (Three seconds of silence while soulless autodialer connects me to soulless telemarketer) Hello, is this Mr. Mispronounced Last Name? Me: What can I help you with? TM: Um… good. How are you? Me: What can I help you with? TM: Blah, blah, blah… I just need to confirm your address (or other assumptive close). Me: No, thank you, have a good day. (Slowly hanging up while TM’s futile attempt to continue the conversation fades into the background.) Fin. I hate receiving these phone calls. The telemarketing modus operandi has not changed in decades. It is as fresh as a Foghat concert. I have yet to field a call that resulted in a negotiation, much less a sale. Regardless, the calls keep coming in. Why do we hate telemarketing calls? Let us count the ways. • The shotgun approach. They call everybody with a phone number. Everyone gets the same pitch. • They do all the talking. Reference the script above. In an attempt to keep you on the phone, they only shut up when they need your recorded consent to start billing. • They know nothing meaningful about you before they pick up the phone. • We often know nothing meaningful about them before they try to sell us something. • Probably 95% of callers hate their job and it comes through in their presentation. • Bullying their way to a quick close is considered a
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good thing. • They frequently use questionable tactics to create the illusion of a connection. “We’re doing work for one of your neighbors…” is only honest if you consider the Earth’s inhabitants to be yours neighbors. • “We spoke a couple of months ago and you asked me to call back.” No, I’m quite sure I didn’t. How could telemarketers revise their approach to actually sell me something? • Find out information about me before calling. Am I really a potential customer for what you’re offering? Doing
even a little pre-call research separates you from the majority of cold callers. • Go off script and have a meaningful dialogue with me. I will often speak with and give information to a person who I’m conversing with. When a person is working from a script, it’s like listening to a boring soliloquy. Instead of engaging, my focus is 100% on how to quickly end the call without providing Building-Products.com
any information that could be misconstrued as “Yes, I’m interested.” • Give me a good reason to listen. If you don’t know anything about me, it’s doubtful that you can provide one. • Pay attention when I tell you why I’m not interested. Telemarketers are trained to blow through your objections come hell or high water. If it’s not a fit, move on. This will save you time and make me more apt to speak to future callers. • Be direct about who you are and why you’re calling. If you’re working for a good company that does good things, there’s no need to be vague or misleading about your employer and reason for calling. Most importantly, how can I avoid making telemarketing calls? The last thing sales professionals want is to be lumped into the category of telemarketer. Let’s assume that sales phone calls are rated on a scale of 0 to 10, based on the prospect’s likelihood of taking the call. Zero is a telemarketing call to be avoided at all costs. Ten is zerocost phone time with a respected industry consultant/guru. When prospects see your number on their caller ID, are they sizing you up as a 0, 5, or 10? Here’s how to improve your ranking: • Have a good reason for calling. Don’t call just to check in, say hi, or see how someone is doing. Even when calling a regular customer, this type of call is not going to generate a lot of excitement. I occasionally receive calls from vendors that sound like this: “Hi, I haven’t heard from you in a while, just calling to check in…” The imagery associated with this opening is of someone who is not very busy, wants my business, doesn’t have a lot to offer, and wants me to think of something they can sell me. • When speaking to someone for the first time, use your brain to find a connection to lead in with. Do you know someone at the company? Do you work with one of their competitors? If you have no personal connection, are you familiar with their products? • Let your prospects know you’re thinking about them. “Hi, it’s been a while since we last spoke. I saw your name mentioned in The Merchant Magazine last month. Do you want me to mail you the article?” Building-Products.com
The imagery here is of someone who is busy but hasn’t forgotten about you, is vested in the industry, and has something to offer with the magazine article. • Present yourself as having something valuable to offer in a specific way (“We’re the only widget manufacturer in your state.”), rather than subjectively (“We make the best widgets.”). Let’s create a sales phone call that might actually have a shot of going somewhere: Ring Me: Commercial Forest Products, this is Steve. How can I help you? Caller: Hi, Steve. I was on your website and saw that you distribute widgets. We supply widgets to some distributors in Oregon and are looking to expand into California. Do you have a few minutes to talk? Me: Okay… (Questions about the widgets) Caller: (Knowledgeable answers about his widgets) Caller: I’m going to be at a trade show in your area next month, can I stop by and meet you in person? How does this call compare to the
telemarketing call at the beginning of this article? • Caller had researched my company before picking up the phone. • The conversation flowed naturally in two directions. If he was working from a script, it was not apparent. • Caller engaged me with a subject of interest to me. • In his answers, caller provided information that showed his expertise. • Caller presented himself as vested in my industry. (What’s this trade show he’s going to?) • Caller wants to meet to see if it makes sense to work together rather than trying to close a deal during the initial phone call. Telemarketers use the shotgun approach. Call volume is emphasized over call quality. It’s unlikely telemarketers will ever make calls like the one I described due to the required time investment. And, if they did, they would be sales professionals. – Stephen Ondich is the owner of Commercial Forest Products, Fontana, Ca., a manufacturer and distributor of hardwood products. He can be reached at (909) 256-4583 or sondich@commercialforestproducts.com.
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FAMILY Business By Jane Hilburt-Davis
Solutions for family business problems: 5 question to ask T
HE ABILITY TO think and act systemically is critical when working in and with family businesses. Failure to do so is a real competitive disadvantage for family businesses and the professionals who serve them. Thinking systemically: • prevents confusing the symptom with the problem • provides a crucial link for integrating the family relationship and business strategies • builds on what is healthy in both the family and the business • uses high-leverage points for positive lasting changes • suggests dynamic and creative ways to deal with obstacles By asking the following questions when faced with a problem in the family and/or business arena, you can begin to think in systems terms. If you cannot answer these questions, you risk working with incomplete data and making the problem even more complicated.
What is the real problem?
Very often what people describe as the problem is only the symptom. Worded another way: presented problems are rarely the real issue. If you focus on the symptom without uncovering the real problem, you are wasting your time and are bound to fail. A doctor does not only treat the rash, but conducts a series of tests to find out what is causing it. That is exactly what you must do with a problem in the family business. To get beyond treatment of the symptom, take a series of steps to uncover the real problem. These steps
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include hearing all sides of the story, getting family members to talk together in a safe, structured and neutral setting, and keeping all options open. The focus for treatment is the underlying structure, the patterns of communication, and conflict management. The goal is to strengthen the system to help it solve its own problems, and improve the bottom line.
How long has this problem existed?
Problems manifest themselves in three ways: (1) same old stuff, (2) Building-Products.com
something brand new, and (3) same old stuff in a new package. If the symptom has persisted for a long time, it reflects a deeper problem embedded in the system. It cannot be dealt with until the underlying patterns and structures that produce it are carefully considered and addressed. If the symptom is new, with a short history, deal with it first. In short, thinking systemically requires an appreciation of behavior patterns over time and across generations.
Is the problem related to unfinished business?
All living systems, including individuals, families and businesses, go through life cycles and crises. Each stage in the life cycle of a business and of a family requires certain tasks. Each crisis requires increased communication and effective action plans for the family and the business to grow and move forward. All too often, problems are the result of avoiding the communication and tasks that are necessary to move to the next stage. Each change in a system produces disruptions in patterns. If emotional processes aren’t managed during such disruptions, the negative effects may be felt over time and over many generations.
Where is the most energy for change?
Energy in systems terms implies possibilities for change. Two things to discuss: How does the energy present itself and what does it look like? It can come in many forms: anger, excitement, frustration, enthusiasm, pain, or a combination. Where is the energy located? It can be in a person of authority, formal or informal, in a subordinate, in an alliance among members of the family business system. Your chances for success are obviously greater if the energy for change is with a person in a position of formal authority. Often, however, with succession issues, the motivation for change is in the succeeding generation, which is highly motivated and without much formal authority. Understanding how the whole system works and appreciating the concept of leverage can help create changes that are positive for the family and the business.
Does the problem serve a function? If so, what? Building-Products.com
Problems often play important roles in systems. A classic example is scapegoating or dumping problems onto a person or group of people. Usually, if one person or group is frequently blamed, the first question to ask is does he/she deserve this? If the answer is “yes,” then the work is with that person. If the answer is “no,” then the work is with the system. Then ask, what would happen if the scapegoat were fired or cut off from the family? Would the problems remain? There are many reasons for scapegoating, but the most common in family business systems are unresolved conflicts, work avoidance, and denial of important business decisions to be made. In short, the question becomes, “Who can we blame?,” rather than, “How can we fix this?” Problems are powerful forces in systems and can play a useful, if sometimes destructive, role. Do your homework. Be prepared for the fallout if the problem is removed without repairing the underlying structure. Problems often don’t get the respect they deserve. They usually play important roles in families and in the workplace, and are windows into solutions. Ask these critical questions, before you rush in to fix things. – Jane Hilburt-Davis is president of Key Resources, LLC, Boston, Ma., a family business consulting firm. She has trained, mentored, and coached hundreds of family business advisors and is co-author of Consulting to Family Businesses. Reach her at (617) 577-0044 or at j.hilburtdavis@comcast.com. Reprinted with permission of Key Resources LLC. No portion of this article may be reproduced without its permission.
Send us your news! Have your recent expansion, personnel promotions, new product introductions, or other company changes published in the next issue of The Merchant Magazine. Just Fax your news to 949-8520231 or email to kdebats@buildingproducts.com. (a free service)
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WHAT YOU WANT. WHEN YOU NEED IT. Timbers Green & K.D. Export
Dimension Lumber Treated Products Domestic
Manke Lumber Company is familyowned and has been serving the needs of the lumber industry since 1953. We take pride in milling and stocking quality lumber in a full range of commodity sizes and larger dimension timbers. We also answer your market needs for a wide variety of treated lumber products. Our forest products are milled from carefully harvested Northwest trees ready for distribution to you—on time and at the right price. Located in the Port of Tacoma, we have ready access to deep water shipping, rail heads or trucking terminals for longer haul loads. Manke operates its own fleet of trucks and is at your service for straight or mixed loads by truck, rail or sea. We manufacture primarily Douglas fir and western hemlock, including • 2x4 thru 2x12, Lengths 8-20’ • 3x4 thru 3x12, Lengths 8-26’ • 4x4 and wider, Lengths 8-26’ • 6x6 and wider, Lengths 8-26’ • 8x8 and wider, Lengths 8-26’ • Timber sizes up to 12x12
Manke Lumber Company Call 1-800-426-8488
1717 Marine View Dr., Tacoma, WA 98422
Phone 253- 572-6252
Fax 253-383-2489
www.mankelumber.com
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February 2013
Moulding Nailer
A cordless nailer from Paslode eases installation of moulding and millwork. The 16-gauge, angled nailer weighs just 4.5 lbs., to fit into tight spaces and tough corners. A Fuel + Nail combo pack includes 1,000 finishing nails and a Quicklode fuel cartridge.
PASLODE.COM (800) 222-6990
Fancy Showerhead
Danze’s five-function showerhead meets requirements of the EPA’s WaterSense efficiency program. The 4-1/2” 505 provides maximum performance, even at lower flow rates. Other improvements include 71 easy-clean jets, five functions, and an easy-glide selector ring with lever.
DANZE.COM
(888) 328-2383 Building-Products.com
Decking With Promise
Hatches Away
Latitudes Wave decking from Universal Forest Products offers the durability of wood composites, at an affordable price. Solid profile boards can be installed with conventional deck screws, while slotted-edged boards can be installed with Equator hidden fasteners. Colors include gray and walnut, and customizable railing options are offered.
A new aluminum roof hatch from the Bilco Co. meets LEED standards for recycled content and is 48% more energy efficient than standard hatches. Features include fully insulated cover and curb, specially designed finger-type gasket to ensure a positive seal, counter-balanced lift assistance for one-hand operation, automatic hold-open arm, and heavy-duty slam latch with both interior and exterior padlocks.
LATITUDESDECK.COM
BILCO.COM
(877) 463-8379
Building-Products.com
(203) 934-6363
February 2013
The Merchant Magazine
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PVC Moulding Profiles
Universal Fastener
The BlackTalon universal deck fastener ensures proper gap spacing for all decking materials, both hardwoods and composites. Made of stainless steel, the hidden fastener includes with two clips, to accommodate joists and angles. Each package includes 170 clips and screws, plus two T15 driver bits, enough to install 100 sq. ft. of 6” board on 16” joist spacing.
BLACKTALON-
Extreme Coating
CertainTeed’s Extreme Texture Coat can be used with conventional spray equipment to create an orange peel or knockdown texture for interior walls and ceilings. The acrylic-based coating is resistant to mold and moisture. Each bucket is pre-mixed and ready to apply.
Azek Building Products added four new profiles to its line of architectural mouldings. Manufactured of cellular PVC, the new profiles include a wainscot cap, colonial base cap, 3” bed, and imperial/rake crown moulding. Each never needs painting and is impervious to moisture and insects.
AZEK.COM
(877) 275-2935
CERTAINTEED.COM
UNIVERSAL.COM (866) 260-2121
(800) 233-899
Smarter Bit
Starborn’s Smart-Bit allows pre-drilling and countersinking of fasteners in fiber-cement board—in one step, at a consistent depth. Designed for use with #10gauge flat-head screws, the tool is packaged with two drill bits of different lengths, for use with either 5/16” or 5/8” thick boards. A protective stop collar keeps debris away and prevents damage to the work surface. Once the collar stops spinning, the hole is complete.
STARBORN-
INDUSTRIES.COM (800) 596-7747
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February 2013
Building-Products.com
IBS 2013 Photos by Merchant Magazine
INTERNATIONAL BUILDERS SHOW was staged by the National Association of Home Builders Jan. 22-24 in Las Vegas, Nv. [1] Mandi Mollom, Mark Davis, Alex Yoshida, Amy Warren. [2] Bob Sloper, Morris Douglas. [3] Mark Reum, Kelli Bergen. [4] Alex Hines, Neal Shunk, Darrell Strandlee, Stephen McNally. [5] Building-Products.com
Larry Burkholder, Larry Boyts, Will Lepire. [6] Jim Wolf, Rick Kapres, Pam Corn, Matt Cullen, Matt Rossi. [7] Tim Folster, Mike Booth, Mike Pidlisecky. [8] Stan Kao, Jackson Chen, Jennifer Wei, Greg Schumacher. [9] Randy Engh, Steve Horvath. [10] Chris Salvador, Dustin Schroeder. [11] Shawn Herrington,
Scott Van Gonten, Jessica Navascues, Steven Kelly. [12] Tony Saad, Jean-Marc Dubois. [13] Brian Orchard, Jay Lattanzio. [14] Craig Young, Dan Beaty, Rick Sanders, Chuck Rigoni. [15] Tom Zimmerman, Jason Quenzer, Patrick Day. (More photos on next two pages)
February 2013
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49
IBS 2013 Photos by Merchant Magazine
MORE IBS in Las Vegas, Nv. (continued from previous page): [1] Marv Askey, Bill Reavely. [2] Barry Breede, Matt Yaun. [3] Alan Oakes, Yolanda Marquez, Mike Moran, Lauren Booth. [4] Cliff Stokes, Melissa Morinelli, Ken Goodnough. [5] Jon Bailey, Wayne Milhon. [6] Flora Masciadrelli, John Cook, Jack Delaney.
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ď Ž
[7] A.J. Jesiolowski, Scott Cathcart, Jim Miller. [8] Patrick Slarko, Joe Biss, C.W. St. John. [9] Randy Richards, Remington Richards. [10] Wesley Blair, Viviane Peixoto, Dan Ivancic. [11] Betsy Bendix, Carol Kelly, Edie Wilson. [12] Bart Bender, Trina Turcan. [13] Jean Desautels, Carol Lyn Groce, Chris Terrels.
February 2013
[14] George McCart, Arden Fullen, John Joubert. [15] Patrick Danieu, Doug Reid. [16] Cesar Aguirre, Joel Cone, Richard Lam. [17] Morgan Raganyi, Mark Novak, Robert Simon, Frank Butterfield. (More photos on next page) Building-Products.com
IBS 2013 Photos by Merchant Magazine
MORE IBS (continued): [1] Todd Johnson, Kim Pohl, Len Kasperski. [2] Shannon Mott, Juliet Depina, DeeDee Graham. [3] Scott Klemroth, Tammy & Glenn Cosper. [4] Jim Solic, Brent Gwatney. [5] Don Danka,
Tim Schrader, Tom Fitzgerald. [6] Uli Walther, Chuck Casey. [7] Barb Stewart, Leda Johnson. [8] Valerie Misa, Doug Morse, Craig Jacks, Jennifer Faines. [9] Steve Barth. [10] Brian Stuk, Jim Seeger.
THUNDERBOLT WOOD TREATING “WE TREAT WOOD RIGHT”…Quality Wood Treating Services Since 1977
WWW.THUNDERBOLTWOODTREATING.COM
Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA
Bob Palacioz, sales/marketing mgr. • bob@thunderboltwoodtreating.com (916) 402-3248 • Fax (916) 339-2477
Marine & Industrial Sales
Miguel Gutierrez • miguel@thunderboltwoodtreating.com (209) 747-7773 • Fax (209) 451-0425
TREATING SERVICES ONLY (TSO)
ACQ • CCA • BORATES D-BLAZE® • ACZA (CHEMONITE®) Heat Treating • Drying Services (KD, KDAT) Marine Piling • Staining Service • Rail Siding (BNSF) Coating Service: MFI-SLO8 Marine Grade Spray Polyurea Coating
C&E LUMBER COMPANY 1 1/2” to 12” Diameter in Stock.
SPECIAL QUOTES
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February 2013
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51
IN Memoriam Richard Lee “Dick” Wickens, 89, co-founder of Lumber Inc., Albuquerque, N.M., died Dec. 29, 2012. A World War II veteran, he worked for NM Timber Co., Bates Roberts Lumber Co., American Builders Supply, and Albuquerque Lumber before teaming with John Chiado Sr. to launch Lumber Inc. in 1972. He served as president, helping the business grow to six locations, until 2007, when it was sold to ProBuild and he retired. Ross Gordon Kincaid, 100, longtime executive director of the Western Building Material Association, Olympia, Wa., and namesake of its Kincaid Learning Center, died Jan. 2 in Palm Desert, Ca. He spent 43 years in the lumber industry, retiring from WBMA in 1976. He then spent seven years pre-
senting management and sales training seminars throughout the western U.S. and Canada with CPA Seldon VanderWegen. David Norman Bodtker, 76, retired Pacific Northwest lumber trader, died Nov. 16 in Portland, Or. He started his lumber career in 1958, after attending the University of Oregon. Before his retirement in 2000 from Alpine Veneer, Portland, he traded at Western International Forest Products, Portland, and Shamrock Building Materials, Eugene, Or. Warren Brown, 45, account manager for the north-central region for SierraPine, Roseville, Ca., died Dec. 31 in Roseville. He had been with SierraPine more than 10 years. Oren Eugene Hollett, 85, retired former supervisor of Bohemia Lumber’s sawmill in Saginaw, Or., died Dec. 25.
CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-
HELP WANTED
HELP WANTED
WANTED TO BUY WANTED: DOWNFALL & SECONDS Downfall, excess or salvage lumber, panels, roofing, etc., purchased for export. Contact CarlHanson103@aol.com, (619) 954-9955.
Universal Forest Products, the nation’s leading manufacturer and distributor of wood and woodalternative products to retail/dealer, manufactured housing and industrial markets, is seeking an outside sales representative to serve its southern California customer base. This position is based out of the company’s Riverside, Ca., facility. This candidate should have comprehensive knowledge of the southern California marketplace and a thorough understanding of the products therein. We are looking for people who can contribute to our growth, who are hungry for success, who bring a winning attitude to their work, and who are interested in new opportunities in an established arena. You provide the skill, knowledge, integrity and perseverance, and we will provide a great place to work, where you will be encouraged to grow and learn and rewarded with outstanding benefits and compensation. If you are interested in joining our team, please email your resume to Steve Mitchell at smitchell@ufpi.com. All replies will be kept strictly confidential. Universal is an equal opportunity employer.
The Merchant Magazine
Richard Marvin “Dick” Hanson, 85, former log buyer for Mary’s River Lumber, Corvallis, Or., died Jan. 17 in Olympia, Wa. After serving in the U.S. Navy and graduating from the University of Washington, he began his career in forestry, working for Boise Cascade and Weyerhaeuser before joining Mary’s River in January 1988. He retired in 1994.
0231 or dkoenig@ building-products.com. For more info, call (949) 8521990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.
SOUTHERN CALIFORNIA OUTSIDE SALES REP
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Richard LeRoy Smith, 88, retired treasurer at Sierra Pacific Industries, Anderson, Ca., died Nov. 27 in Bend, Ca. Mr. Smith served as a radioman with the Navy during World War II, then earned his bachelor’s degree in accounting at the University of Oregon. After graduation, he worked as a CPA at Arthur Young, Portland, Or., then went to work at Molalla Forest Products, Molalla, Or. In 1971, he joined SPI in Arcata, Ca., where he worked as treasurer until his retirement in 1992.
NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.
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February 2013
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DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Southern California Hoo-Hoo Club – Feb. 20, meeting, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; hoohoo117.org. National Frame Building Association – Feb. 20-22, frame building expo, Memphis, Tn.; (800) 557-6957; www.nfba.org. Ace Hardware Corp. – Feb. 21-23, spring show, New Orleans, La.; (630) 990-7662; www.acehardware.com. Oregon Logging Conference – Feb. 21-23, Lane County Fairgrounds, Eugene, Or.; (800) 595-9191; www.oregonloggingconference.com.
Tacoma-Olympia Hoo-Hoo Club – March 5, meeting, Seattle, Wa.; (253) 531-1834. Moulding & Millwork Producers Association – March 5-9, winter meeting, Talking Stick Resort, Scottsdale, Az.; (800) 550-7889; www.wmmpa.com. West Coast Lumber & Building Material Assn. – March 7, 2nd Growth meeting, Buena Park, Ca.; (800) 266-4344; www.lumberassociation.org. Mountain States Lumber & Building Material Dealers Assn. – March 7-8, products expo, Denver Merchandise Mart, Denver, Co.; (800) 365-0919; www.mslbmda.org. Tacoma Remodeling Expo – March 8-10, Tacoma, Wa.; (800) 3746463; www.homeshowcenter.com.
Orgill Inc. – Feb. 21-23, dealer market, Orange County Convention Center, Orlando, Fl.; (800) 347-2860; www.orgill.com.
San Jose Home Show – March 9-10, San Jose Convention Center, San Jose, Ca.; (888) 433-3976; www.acshomeshow.com.
Colorado Springs Home & Landscape Expo – Feb. 22-24, Colorado Springs, Co.; (800) 374-6463; homeshowcenter.com.
Los Angeles Hardwood Lumberman’s Club – March 14, golf tournament, El Prado Golf Course, Chino, Ca.; (626) 445-8556; www.lahlc.net.
True Value Co. – Feb. 23-25, spring market, Atlanta, Ga.; (773) 695-5171; www.truevaluecompany.com. American Architectural Manufacturers Association – Feb. 24-27, annual conference, Loews Ventana Canyon, Tucson, Az.; (847) 303-5664; www.aamanet.org. WoodWorks – Feb. 27, Wood Solutions Fair, Seattle, Wa.; (866) 966-3448; www.woodworks.org. American Fence Association – Feb. 27-March 1, FenceTech/ DeckTech, George R. Brown Convention Center, Houston, Tx.; (800) 822-4342; www.americanfenceassociation.com. Western Wood Preservers Institute – Feb. 28-March 3, winter meeting, Embassy Suites Downtown, Portland, Or.; (360) 6939958; www.wwpinstitute.org.
Redwood Region Logging Conference – March 14-16, Redwood Acres Fairgrounds, Eureka, Ca.; (707) 443-4091; www.rrlc.net.
Now Distributing the Latest in
Thermally Modified Solid Hardwood Decking
The Most Stable & Beautiful Hardwood Decking Available
Western Wood Products Association – March 3-5, annual meeting, Embassy Suites Downtown, Portland, Or.; (503) 224-3930; wwpa.org.
• Environmentally friendly manufacturing process • Made from American hardwoods • JEM™ (Joint End Matched) Machined End Joints • Thermal modification stabilizes the wood, making it 7 times less likely to warp, check, bow, cup, twist, expand or contract
The answers for a long lasting, more beautiful deck.
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Also in Stock: Domestic & Imported Hardwood Lumber & Plywood • Moulding & Custom Flooring Hardwood S4S • Solid Glued-Up Panels & Countertops
Since 1980
5700 Earhart Ct., Windsor Ca. 95492 Fax 707.838.4413 • Mill Fax 707.838.9690 www.MountStorm.com • Phone 707.838.3177
We ship full trucks & units anywhere in the West Building-Products.com
February 2013
The Merchant Magazine
53
ADVERTISERS Index
IDEA File
For more information on advertisers, call them directly or visit their websites [in brackets].
Artful Ingenuity
Advantage Trim & Lumber [www.advantagelumber.com]..........17 Boise Cascade [www.bcewp.com]..................................................4 BW Creative Wood [www.bwcreativewood.com] .......................38 California Redwood Co., The [www.californiaredwoodco.com] ..5 C&E Lumber Co. [www.lodgepolepine.com] ...............................51 Capital [www.capital-lumber.com]................................................48 Collins Companies [www.truwoodsiding.com] ...................Cover I DeckWise [www.deckwise.com] ...................................................28 Endeck [www.endeck.com] ...........................................................29 Fontana Wholesale Lumber [fontanawholesalelumber.com].....36 Huff Lumber Co. .............................................................................34
LUMBERYARD brought an end to graffiti by hiring a local street artist to paint a mural on the side of its warehouse.
Tired of dealing with spray-painted graffiti, one East Coast dealer commissioned a local artist to create something that would get people talking. “For a long time, I’ve had in mind to use the space as a canvas for something a little more real, a little more meaningful,” says Adam Wallace, assistant vice president of West Haven Lumber, West Haven, Ct. “It’s opened a dialogue that’s never happened before at the lumberyard.” Adam and his family have been running the yard— which now occupies two city blocks—since 1927. The new art covers a back wall, near the pre-hung door shop, that backs up to commuter rail tracks. That means the art—and the company—attracts lots of notice. Stories that appeared in local newspapers also got the word out, attracting curious customers and people from nearby homes and businesses. An anonymous street artist known as BiP, which stands for Believe in People, created the wall mural at night during one week in December. Although he’s created other projects in the area, the wall at West Haven Lumber is the largest so far. Wallace says he saw a sketch before work started, but didn’t have any say, other than veto power. “The artist wasn’t interested in doing any sort of commissioned piece,” he says. “It was clear from the beginning that I would have no editorial control at all.” Since a local art gallery has volunteered to maintain the mural, it will be around for a long while—which is okay with Wallace. “It’s a different vibe for a lumberyard,” he notes. “Guys here are usually focused on one task at a time, whatever they’re doing that day. I see it as a hopeful piece, that’s pulling you up to another level.”
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Inteplast Group [www.tufboards.com] .........................................33 Jaaco Corp. [www.jaaco.com].......................................................30 Keller Lumber Co............................................................................36 Manke Lumber Co. [www.mankelumber.com].............................46 Mendocino Forest Products [www.mfp.com] .....................Cover II MoistureShield [www.moistureshield.com].......................Cover III Mount Storm Forest Products [www.mountstorm.com].............53 NewTech Wood [www.newtechwood.com]....................................3 Norman Distribution Inc. [www.normandist.com].......................41 NyloBoard [www.nyloboard.com].................................................37 OrePac Building Products [www.orepac.com] ..............................7 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....15 Redwood Empire [www.redwoodemp.com].................................25 Reel Lumber Service [www.reellumber.com] ..............................44 Regal Custom Millwork [www.reellumber.com] ..........................44 Roseburg Forest Products [www.rfpco.com] ..............................39 Royal Pacific Industries .................................................................45 Simpson Strong-Tie [www.strongtie.com]...................................19 Sure Drive USA [www.suredrive.com]..........................................53 Swanson Group Sales Co. [www.swansongroupinc.com].........31 TAMKO Building Products [www.elementsdecking.com] ..........23 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....51 Tiger Deck [www.tigerdeck.com] ..................................................26 Versatex [www.versatex.com].......................................................35 Wahoo Decks [www.wahoodecks.com] .......................................47 Western Forest Products [www.westernforest.com] .................32 Western Red Cedar Lumber Association [www.wrcla.org]...42-43 Western Wood Preserving (westernwoodpreserving.com).Cover IV
Magazine
February 2013
Western Woods Inc. [www.westernwoodsinc.com]......................8 Weyerhaeuser [www.weyerhaeuser.com]....................................27 Building-Products.com
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