The Merchant Magazine - April 2011

MERCHANT

PRESSURE TREATED WOOD UPDATE NEWEST ENGINEERED WOOD PRODUCTS

The

AP R I L 2011

Magazine

The

MERCHANT

Special Features 9 FEATURE STORY INTRODUCING ISULATED EWPS

10 MARGIN BUILDERS UNDERLAYMENT SELLS ENGINEERED FLOORS

12 FEATURE STORY MOST DEALERS SPECIAL ORDER NEW TYPES OF TREATED WOOD

14 PRODUCT SPOTLIGHT LIFE CYCLE ASSESSMENT FAVORS TREATED

16 INDUSTRY TRENDS SOCIAL MEDIA PROMOTES TREATED WOOD

20 INDUSTRY TRENDS GLIMMERS OF HOPE IN HOUSING DATA

16 FIRST PERSON AWPA EXEC RESPONDS TO FLOOD OF NON-STANDARDIZED WOOD ON MARKET

Magazine

Online

In Every Issue 6 TOTALLY RANDOM 18 COMPETITIVE INTELLIGENCE 22 OLSEN ON SALES 30 GREEN RETAILING 34 KAHLE ON SALES 38 FAMILY BUSINESS 40 MOVERS & SHAKERS 42 MANAGEMENT TIPS 46 NEW PRODUCTS 53 ASSOCIATION UPDATE 54 IN MEMORIAM 56 CLASSIFIED MARKETPLACE 57 DATE BOOK 58 IDEA FILE 58 ADVERTISERS INDEX

April 2011

Volume 89 Number 10

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TOTALLY Random

By Alan Oakes

I

When is it time to walk away?

READ RECENTLY OF A MUSICIAN turned a simple idea into a $20-million business with a lot of profit. Certainly, he was an unlikely entrepreneur, but in solving a problem he personally had, he realized there were many other musicians facing the same problem.

About the tenth year of running his own business, he woke up one morning and realized it was no longer want he wanted to do. He tried ignoring this feeling as long as he could—after all, he was making millions annually. He was fortunate to sell the company just a few weeks later for a tidy sum (albeit less than he could have) and about eight months later completely walked away. Since then, he has no regrets and simply does not care what the new owners are doing with his “baby.”

His story caught my attention because it is something I have seen others wrestle with, as I have a few times in my career. Many reading this column will not have a tremendous amount of sympathy with the above example, but it is an issue that plagues all of us in some way. When is the right time to sell, move to a new job or career, or retire?

Several times in my corporate life, I woke up and said to myself, “Enough!” Coming to those conclusions was always hard. In one case, we had grown our company from bankrupt to extremely profitable. But around year seven I knew it was time to get out. I stayed on until I absolutely could not stand it any more—about three years too late. In another situation, I knew that I would never be happy working for the owner and, despite earning the most I ever had, knew I had to walk away before it consumed me. The upheaval caused by both of those moves was quite dramatic for me and my family, but over time turned out to be among the best decisions I have ever made. In one case, it led me in a circuitous route to this magazine.

Whatever role we are in, the dynamics can change. And sometimes while it is regrettable, when the job or business seems like an albatross around your neck, when you grow bored, when going to work is the last thing you want to do, when you realize you’ve reached your limitations, or when the whole company or industry changes around you and you have taken it as far as you can go, it is time to walk away with no regrets.

In the first of my situations above, it was one of my top two favorite jobs and one of my greatest business accomplishments. It initially gave me the greatest joy, but time and circumstances changed. Typically, as a company grows, the demands and challenges increase. New pressures arise. You find yourself having to deal with politics or to get rid of employees who in the beginning were friends burning the midnight oil at your side, but who had been outgrown by the new demands. The business culture changes and you must make decisions you would have never imagined five years earlier. You even find yourself separating from the people who helped you in the beginning, as layers of management increase and you begin to focus on the strategic instead of the-day-to-day.

We often accept a job or launch a company to fulfill a personal passion or vision or simply to serve a gap in the market. Often, you achieve all your goals despite yourself, by being in the right place at the right time. And when you get there, you may ask yourself, “What’s next?” Many will set a new round of goals or move to a new dream. Others will take stock of themselves, build some space, and fade into the sunset, temporarily or permanently. I know owners who had great vision and yet could not manage, so they and the management team became bogged down with a morass of daily problems. They would not delegate until they finally knew it was time to sell out. I have seen managers who had to suffer a heavy personal toll, including heart attacks, before they finally realized they belonged elsewhere.

Leadership skills and management skills are very different, and most owners and managers generally are not good at both. In whatever role you play, when the passion is gone, the best decision you can make for your company, your customers, and yourself, may be to move on to new pastures. And yet, so many do not! It is hard to walk away from something that earlier was so great.

Whatever the reason, when the light burns out, it is time to move on, hopefully to something even better.

Alan Oakes, Publisher ajoakes@aol.com

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The Merchant Magazine April 2011

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A publication of Cutler Publishing

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Viance Treated Wood Solutions

FEATURE Story Insulated Structural Framing

Introducing insulated EWPs

T

WO MANUFACTURERS are rolling out engineered wood products— including studs, headers, rim board, and corners—featuring an inner layer of foam insulation to improve the thermal efficiency of conventional, stickbuilt exterior walls.

In conventional framing, the space between each stud is filled with insulation to reduce air leaks and increase energy efficiency. However, wood studs don’t have the same R-values as the insulation, causing a loss of thermal efficiency.

“Our insulated structural framing components help increase a home’s energy efficiency by reducing thermal bridging, plus they install easier and faster than field-assembled insulated framing members,” said Chris Degnan, strand product manager for iLevel by Weyerhaeuser, Federal Way, Wa. The products, according to Degnan, also help builders meet energy-efficient framing requirements of the 2009 International Energy Conservation Code and 2011 Energy Star for Homes. “Builders are under pressure to meet these new, energy-efficient framing requirements,” he said.

The TJ Insulated line from iLevel includes R-17 headers, R-10 rim board, and R-30 corners constructed of FSC-certified Trus Joist TimberStrand LSL and Dow Thermax insulation. All three are sized to fit conven-

INSULATED LUMBER from EC Manufacturing helps builders meet the latest energy efficiency standards.

Building-Products.com

STRUCTURAL FRAMING products feature Dow Thermax insulation for more consistent R-values than conventional framing assemblies.

tional 2x6 framing dimensions: • The one-piece header combines 31/2” LSL, 1-1/2” thick insulation, and a 7/16” OSB face that allows fast and easy drywall attachment.

• The rim board features a foil face and 1” of insulation to ensure the piece fits and fastens in one easy step.

• The structural corners are insulated with 4” of insulation for a better three-stud corner or interior wall.

“Many homebuyers today expect that energy-efficient homes are a given,” said Jeff Rettig, iLevel’s New England regional manager. “The latest standards boost a home’s energy performance by focusing on framing techniques.”

The new products are also environmentally friendly. “Advanced framing techniques not only add to the overall energy efficiency of a home, but can also reduce the volume of material and waste at the job site,” said Rob Brooks, director of iLevel’s green building program.

Currently, the new iLevel products are only available in the Northeast, through OneTree Distribution, with

locations in Lancaster and Syracuse, N.Y., and Assonet, Ma. “The new iLevel products have been well received, even so early in the season,” said president David Brown. “The header is selling better so far, as it is not as much of a new concept as the other products. The rim board would be second because it solves a number of new code issues.”

EC Manufacturing, Lafayette, Co., has sized its new rStud to fit 2x6 framing dimensions. “Our products allow conventional, stick-built framing, with improved wall performance,” says c.e.o. Dennis Clark. “Since they are lighter than conventional products, this means less effort to pickup and install.”

The new products sandwich energy-efficient foam between two thin pieces of engineered wood. According to Clark, the company is currently producing 2x6 insulated studs and LVL insulated headers. “These are four times more energy efficient than conventional lumber,” he says.

The manufacturer is in discussions with potential distributors.

April 2011 The Merchant Magazine

9

MARGIN Builders

By Bob Pratt, MP Global Products

Underlayment can sell engineered flooring

I

N TODAY ’ S COMPETITIVE

environment, the more your sales associates know about the products they sell and what differentiates one within a category from another, the better their ability to close value-added sales. This can be especially true when selling products with attributes that are invisible but nevertheless very important.

For example, when selling underlayment for engineered wood and laminate flooring, it is very helpful to point out distinguishing characteristics of the various products you offer.

What lies beneath a finished floor can, indeed, make a big difference in the overall performance of the floor.

There’s a lot that can be talked about. The specifications and characteristics of an underlayment can affect walking comfort, sound transmission between floors, the perceived warmth or coldness of the floor underfoot, the ability of the underlayment to handle moisture emanating from the subfloor, and the smoothness of the finished surface. In newly sold or rental housing, imperfections in any of these qualities can lead to issues that can result in callback of the contractor or complaints to the owner and, perhaps, even reverberate to the supplier.

A salesperson selling engineered wood and laminate flooring should know about the standards that apply to underlayment and what the product labeling on underlayment packaging stands for. For example, to meet building codes, acoustical underlayment, which is designed to minimize noise transmission, has to be tested in a flooring assembly to make sure the assembly conforms to impact insulation and sound transmission levels.

Acoustical underlayment can quiet

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The Merchant Magazine April 2011

ACOUSTICAL UNDERLAYMENT can make laminate and engineered wood flooring perform better—by reducing sound transmission, adding thermal insulation, and wicking away moisture.

impact sound, dampen ambient sound, and inhibit noise from traveling into the room below.

Distributors and retailers selling engineered wood and laminate flooring to owners and contractors of new and renovated rental units and condos should recommend acoustical floor underlayment that meets or exceeds local building department acoustical standards.

The best way to make sure an underlayment for engineered wood and laminate floors meets applicable standards is to look for documentation that the product has been laboratory tested as part of an assembly, because that is what the code looks for. When evaluating floor underlayment, building departments often rely on tests to define the performance of a floor/ceiling assembly—how well they Building-Products.com

insulate against noise created by impact and airborne vibration.

Manufacturers that have their products tested usually label the products to indicate the standards to which they conform.

There are two tests performed in a controlled laboratory environment that are recognized by the International Building Code for sound that travels from one living area down to another, including in a multi-family residential complex. One is the test for Impact Insulation Class (IIC) and the other is the test for the Sound Transmission Class (STC).

IIC evaluates the ability to block impact sound by measuring the resistance to transmission of impact noise or structure-borne noise. STC tests the ability of a specific construction assembly (e.g., floor, door or window) to reduce airborne sounds, such as voices, stereo systems, and TV. The higher the number, the higher the resistance.

In addition to minimizing sound transmission, acoustical underlayment with an appropriate compression resistance can help smooth out minor imperfections in the subfloor while properly supporting the floor, enabling the top finish surface to lay flat. It also adds thermal insulation that helps keep the floors warm in cold weather and cool in warm weather. Also, the cushioning effect of quality underlayment lessens the strain of each footfall on knee and hip joints, resulting in more comfortable walking. Some underlayment options that are engineered to wick away sub-floor or incidental perimeter moisture can help protect

Building-Products.com

engineered wood and laminate flooring from subfloor moisture that could otherwise mar the finished floor.

And for customers aiming for environmentally friendly floors (a market that is growing every year), there are acoustical underlayments clearly manufactured to fulfill environmental interests, which are third-party certified for sustainable attributes and are

made primarily from post industrial/ pre-consumer recycled fibers that may otherwise have ended up as land fill. â&#x20AC;&#x201C; Bob Pratt is technical director of MP Global Products, Norfolk, Ne., manufacturer of sustainable underlayments, including QuietWalk, a sound-attenuating underlayment for laminate and floating-wood flooring. Reach him at (888) 379-9695 or via www.quietwalk.com.

April 2011 The Merchant Magazine

11

FEATURE Story Pressure Treated Wood Trend

Out of stock

Dealers stick to special orders for new types of treated wood

D

of treated wood products now on the market, the typical lumberyard stocks a single brand of copper-based treated, occasionally with a small backup of borates. Where are all the other options—the carbon-based, chemicalfree, thermally modified, mold-protected, fire retardant, and salt-water compatible?

ESPITE THE MULTITUDE

Obstacle One: The primary reason why dealers aren’t stocking more types of treated wood is that, with justin-time delivery from their neighborhood wholesalers and treaters, they don’t have to.

Whatever dealers need is usually a phone call away. And a short delay typically isn’t a problem, since so many specialty treatments, like fire retardants or ACZA, are for commercial or industrial applications for larger projects that are planned well in advance.

Jaeger Lumber, Union, N.J., stocks only micronized copper azole.

“Stocking lumber takes a lot of space and a duplicate inventory would be cost prohibitive for most lumberyards,” said Bryan Jaeger. Other products aren’t special ordered, unless specified by the customer or required by building codes, “due to the special order restrictions of returns. We can and would for a sizable enough job, but for a remodeler or a consumer it is simply not practical.”

Obstacle Two: Insufficient demand for alternatives, because current copper-based treatments are seen as “good enough.”

“We have not witnessed the customer specifying any particular kind

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The Merchant Magazine April 2011

SPECIALTY TREATMENTS such as TimberSil “glasswood” (above) and thermally modified wood (next page) are being sold, but almost exclusively by special order.

of treatment,” said Harold Baalmann, president of B&B Lumber Co., Wichita, Ks. “They are most concerned about knot structure and wane, or how it looks. For that reason we carry a lot of #1 SKUs, especially in lengths that will be visible.”

John Daingerfield, buyer at Jaeger Lumber, added, “We do occasionally get inquiries for some of the other alternatives, but when you find out what the client is trying to accomplish, typically they can accomplish their goals with what we stock (MCA).

“There are many, and in my opinion too many, other options for treated wood for exterior uses. Small incremental differences in features and benefits for increased cost are not a benefit. In our area, treated wood is used

for sill plate and exterior uses. Boratetreated lumber can’t get wet or the chemical will leach out of the wood, so it is not on option here. Formosan termites haven’t made it this far north, so that isn’t an issue here. No one in our market frames with treated wood.

Fire retardant treated wood is an entirely different category for different uses. We source that locally through distribution.”

Obstacle Three: Alternatives, often sold in smaller quantities, usually carry higher price tags.

Lapointe Lumber’s two yards in central Maine stock only MCA. “We will on occasion order in some lumber treated to heavier rates than normal for jobs that call for that, such as docks, Building-Products.com

piers or pilings,” said v.p. Dick Tarr.

“We have also ordered in fire treated lumber and plywood when asked for in commercial projects.”

A few years ago, Lapointe also considered other treated alternatives, including TimberSil, but the products “never got off the ground in this area.”

Lapointe has samples of thermally modified wood on its sales counters, hoping to kickstart sales. The samples, Tarr said, “have piqued the interest of a few customers, however pricing could be too high for some projects that they were considering.”

Indeed, low cost is one of the reasons many customers choose wood in the first place. “I wouldn’t say we ‘upsell’ any treated,” said Chad Korte, president of Home Lumber, New Haven, Ct. “We sell customers on the value of treated lumber due to its lower cost compared to much more expensive alternatives that don’t necessarily perform that much better.”

Home Lumber inventories mainly MCA for exterior applications and borates for plate material. “We have special ordered thermally treated lumber for one customer, and fire treated material in several other cases,” Korte said.

If someone’s looking for a better product at Fullerton–The Builder’s Choice, Watertown, Mn., instead of substituting treatments, “we upsell them on just the grade of lumber,” said manager Paul Silver. “For example, we stock all #1 southern yellow pine versus #2 ponderosa pine.”

Nonetheless, there are dealers out

there who believe in having multiple treatments on hand and in taking a chance on new products.

Brands Inc., Columbus, In., stocks mostly MCA, but also some MCQ (5/4x6, KDAT radius edge decking), borates (2x4 and 2x6 for interior plate stock), fire retardant treated (dimension and plywood), and CCX (treated plywood)—enough for president Jesse Brand to admit, “We probably overdo it here at Brands.”

Wider inventories are also more common in environmetnally sensitive areas, such as California. Golden State Lumber, Napa, Ca., has wholesaler United Pacific Forest Products, Tigard, Or., oversee the treated program for its four yards. They stock ACQ, tinted ACQ, borates, and interior fire retardant treated.

According to UPFP’s David Billingsley, “This inventory ranges from 2x4 8’ through 8x8 24’, as well as plywood from 3/8” to 3/4”, including some 9’ and 10’ panels. Although every (Golden State) yard does not stock every item, we have the ability to transfer material between locations.”

Other treatments readily available to Golden State, though not in their yards’ current on-the-ground inventory include anti-mold (Quantum and BluWood), ACZA, ACZA with Polyurea coatings, and exterior fire retardant. They will also offer MicroPro micronized copper azole as soon as it is available, which Billingsley expects by the end of the month.

STELLAC THERMALLY MODIFIED WOOD Building-Products.com

April 2011 The Merchant Magazine

13

PRODUCT Spotlight

By Stephen T. Smith, AquAeTer

Life cycle assessment shows treated wood better for environment

A

RECENT LIFE-CYCLE ASSESSMENT of ACQ-treated wood completed by third-party engineering firm AquAeTer revealed results not surprising to the wood industry: across the board, pressure treated wood is friendlier to the environment that wood-plastic composite decking. A complete peer review article was published in the January 3, 2011, online edition of the Journal of Cleaner Production.

The goal of the LCA was to investigate the cradle-tograve environmental impacts related to ACQ-treated lumber decking and, using the LCA model, quantify these impacts. Relying on an inventory of environmental inputs and outputs attributable to treated lumber decking, AquAeTer completed a comparable inventory of woodplastic composite (WPC) decking. Results were then calculated for both, and comparisons drawn based on impact indicators for each product.

Information sources for both products include published data and surveys, with some information estimated/assumed based on known information.

Four phases defined the LCA: goal and scope definition, inventory analysis, impact assessment, and interpretation. Parameters for pressure treated wood included inventory inputs, outputs and impact indicators based on 1,000 bd. ft. per representative deck (320 sq. ft.). For WPC, the manufacture, use and disposal of the product was evaluated for 1,000 bd. ft. per representative deck (320 sq. ft.).

Products used in the LCA: ACQ-treated southern pine 5/4x6 radius-edge decking, treated for above-ground/ exterior exposure according to AWPA standards and “typi-

Fossil Fuel Footprints of a 16’x20’ Deck Treated wood =

Equivalent of driving a car 38 miles per year

Composite =

Equivalent of driving a car 540 miles per year

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The Merchant Magazine April 2011

According to the EPA, life cycle assessment is a technique used to assess the environmental aspects and potential impacts associated with a product, process or service.

cal” WPC product with nominal dimension of 5/4x6 inch (32 x 152 mm) and actual dimensions of 1.175x5.4 inches (29.84 x 137 mm). (For the purpose of this LCA, the WPC product was modeled as if manufactured from 50% recycled wood flour, 25% post-consumer recycled HDPE, and 25% virgin HDPE. As product formulas vary by brand, this mixture was assumed as the U.S. national average.)

For treated wood, four main life-cycle stages were recognized: lumber production (includes replanting a harvested area of forest, growing/maintaining the forest plantation until harvest, harvesting of the trees, drying, milling and associated transportation), lumber treating, treated wood as decking, and treated wood disposal. Life-cycle stages for WPC included production, use and disposal.

Impact indicators tracked and evaluated included: • Greenhouse gas emissions: the quantification of human-caused emissions with the potential to affect global climate.

• Fossil fuel use: finite resource depletion related to global climate change, national security (dependency on imports), and finances (diminishing resources = increased costs/limited availability).

• Water use: total amount of water used throughout each process of the product life.

• Acidification: the potential for emissions that result in acid rain deposition on the earth’s surface.

• Smog-forming potential: assesses the potential of air emissions to result in smog.

• Ecological toxicity: includes ecologically toxic impact indicators that are normalized to a common herbicide of accepted ecological toxicity.

• Eutrophication: characterized the potential impairment of water bodies resulting from emissions into the air.

In addition, the total amount of energy input over the Building-Products.com

life cycle of both products, while not considered an impact indicator, was still tracked as part of the LCA.

The Results

Based on each impact indicator, AquAeTer concluded that the use of ACQ-treated lumber for decking offers lower fossil fuel use and environmental impacts than the use of wood-plastic composite decking.

Breaking the results down by impact indicator: Impact Indicators WPC (vs. PTW) GHG emissions = 2+ times more Fossil fuel use = 14 times more Water use = 3 times more Acid rain = 4 times more Smog = 2 times more Ecological toxicity = almost 2 times more Eutrophication = even Total energy use = 8.5 times more In other words, if a family of three adds or replaces a 320 sq. ft. ACQ-treated deck, the impact “footprint” of this

action for all impact indicators is less than one-tenth of a percent of the family’s annual total footprint.

Some assumptions were based on the professional judgment of the engineers conducting the life cycle assessment.

Items of uncertainty included variations in wood deck sealer application and formulation, as well as methane collection in landfills.

Several recommendations were proposed by AquAeTer following the LCA process, including the reduction of energy inputs via conservation and innovation, working to source more materials locally, and increasing the use of biomass as an alternate energy source.

AquAeTer is a multi-disciplinary, third-party engineering firm that provides scientific and technical services in projects related to energy, engineering, environmental, sustainability and risk analyses. The LCA, funded by the Treated Wood Council, was performed in a manner consistent with principles and guidance provided by ISO standards.

– Stephen T. Smith, P.E., is an associate at AquAeTer, Helena, Mt. For more on the LCA, visit www.realoutdoorliving.com/lca.

Free Treated Wood Sales Aids Research conducted and completed by Real Outdoor Living in mid-2010 indicated a need for more comprehensive, up-to-date pressure treated wood information targeted to building product dealers and retailers.

“Alternative decking products have come on strong in recent years, and it’s clear there’s a bit of outdated information about pressure treated wood in the marketplace,” said Kim Drew, Real Outdoor Living program manager. “We thought it was time to remind everyone why they fell in love with pressure treated wood in the first place.”

In order to meet this need directly, Real Outdoor Living recently introduced three new collateral pieces designed to reinforce the benefits of choosing treated wood.

Poster

In-Store Poster

Designed to be displayed inside a lumber dealer, the four-color glossy poster is designed to showcase the beauty and environmental benefits of pressure treated wood.

With a look that complements the overall feel of Real Outdoor Living, the poster measures 16” x 21.25”.

POP Rack Card

Measuring 5” x 9” and perfect for displaying at the register, this rack card is printed with English on the front, Spanish on the back.

The four-color glossy card focuses on the fea-

Building-Products.com

Rack Card

Pocket Guide

tures and benefits of choosing treated wood for outdoor building including maintenance, safety, strength, environmental friendliness, and natural beauty.

Pocket Guide

Measuring 2.75” x 3.875” folded (with a laminated card-stock cover to prevent bending) and 15.75” x 11.5” unfolded, this four-color glossy front and back guide offers loads of information about treated wood in an easy-tocarry format.

Section topics include sustainability, fact or fiction, uses, installation, maintenance and safety. Order one for everyone on your team!

The new collateral materials are being promoted via online banner ads, print ads, public relations, and social media. Additionally, each piece carries a smart tag to make ordering a breeze from a smart phone.

All three pieces are available free at www.realoutdoorliving.com.

April 2011 The Merchant Magazine

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INDUSTRY Trends Treated Wood Meets Social Media

Tweeted Wood

Using social media to promote preserved lumber

I

company impact measurement goes beyond sales numbers to include Facebook fan page “likes,” more and more building product manufacturers and service providers are turning to social media as an integrated part of their marketing communications plan. While still a novelty to some, the building products community within blogs, Facebook, Twitter, YouTube, and the like is growing by leaps and bounds.

“Social media growth in the building industry makes perfect sense,” said Bryan Wright, owner and senior strategist of BeWright & Associates. “This is an audience that rarely sits down at a desk: they’re using laptops and smart phones as their primary methods of communication with customers, dealers, co-workers and peers. Social media N AN AGE WHERE

gives them a clear path to keeping up with the companies they like in real time.”

Wright is also the architect of an increasingly successful social media campaign for the Real Outdoor Living pressure treated wood promotion program managed by the Southeastern Lumber Manufacturers Association. He has more than a decade of communications experience in construction and building products, has become a social media expert, and is a regular blogger on ToolBoxBuzz.com.

“Our goal was to reinvigorate the social media outlets already in place, then build out from there,” said Kim Drew, Real Outdoor Living program manager. “Working with Bryan, we’ve created a dynamic dialog of information across our targeted audience base of consumers, lumber dealers, retailers and deck builders.”

Social media successes have been quick to come to the Real Outdoor Living program. The “Wood” Facebook page has seen fans increase exponentially since January 2011. In February alone, the page enjoyed a 321% increase in regular users over January numbers. Over on Twitter, a short series of tweets reached upwards of 19,000 followers within a minimal late-January time frame. Wright attributes these numbers to two things: regular activity and quality content.

“For a non-branded commodity product, we’re thrilled with these numbers,” added Drew. “They indicate that we’re pulling wood fans back to the nest, reinvigorating them with new information and updated ideas for working with our product.”

Wright points out that social media can be a solid directional device for leading customers where you want them to go. “Everything we do with Real Outdoor Living leads back to the website; that’s the consummate source for pressure treated wood information. And our recent site visit numbers indicate we’re doing just that,” he continued.

The Blogosphere

REAL OUTDOOR LIVING’S “Wood” page on Facebook registered a 321% increase in regular users in one month.

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The Merchant Magazine April 2011

Blogs, a more advanced online way to share copy, video and/or photos with a particular demographic, are an intrinsic part of the social media platform.

“We’ve had some outstanding successes with bloggers within the industry,” continued Drew. “From ToolBoxBuzz.com to ToolSkool.com to HomeConstructionImprovement.com and MyFixItUpLife.com, these Building-Products.com

folks are some of the most plugged-in information sources in the industry.”

Beth Knott, author of the ToolSkool.com blog, uses social media as a way to get timely information to “friends” and “followers” about new tools and hot industry topics.

“Our audience might not monitor our Web site every day, but they are on social media every day,” said Knott. “When they see a Facebook status update or a tweet from us, they know to check out the site for the latest information.”

Smart Tags

If you have a smart phone, you’re probably familiar with smart tags: those tiny little boxes seen in ads or on signage that are scanned with a phone app in order to direct you to a specific website. Relative newcomers to the fast-paced online world, these tags are bridging the gap between customer and product by providing instant-access information needed to complete a potential sale.

The tags can also be used as a portable source of information. “Our just-published membership directory includes a smart tag on the back cover for easy smart phone access to the SLMA website,” said Erica Strickland, communications and membership manager for SLMA in Atlanta, Ga. “Our members were asking for a portable way to manage the massive amounts of information contained in our annual directory. Now they can scan the tag with their smart phone and be taken to the most updated version of the directory, right on their handheld screen. It’s going to increase the speed and efficiency with which our members do business.”

Tips & Techniques

Thinking of sticking your toe into the social media pool?

Wright offers a few tips: • Evaluate. Research everything: where your target audience lives online, what the competition is doing well (and where there’s room for improvement), and what information on your product or service is already online.

• Plan. Decide what your properties will look and feel like. Echo your existing communications efforts by giving your Facebook page or twitter account the same voice as your print ads or community relations efforts.

• Design. The average online attention span is about seven seconds. How will you grab and keep interest?

Videos and photographs equate to longer online visits than text only.

• Reach out. Before ever going live, have a solid plan in place for reaching out proactively to your desired audience.

Just because you build it doesn’t mean they will come; they’ll need to be asked.

• Keep it fresh. A good rule of thumb: update your properties three to four times a week—and never let a user question go unanswered for more than 24 hours. Realize that the entire concept is fluid, and sites may need revisions once a month to stay on top of trends and information.

“Most importantly: your social media program is not a job for the intern,” concluded Wright. “Social media is a complex form of word-of-mouth marketing and should be treated with all the respect it deserves.”

– To visit Real Outdoor Living in the world of social media, visit: www.facebook.com: “Wood” fan page www.twitter.com/woodaholics www.youtube.com/wooditsreal Building-Products.com

April 2011 The Merchant Magazine

17

COMPETITIVE Intelligence

By Carla Waldemar

Dealer trades up

J

to sell hardware; he’d owned a store since 1963. But lumber? Not so much (well, make that zero). Still, when he sensed an opportunity in a nearby Colorado town even before it came knocking, he approached a soon-toretire yard owner and put a deal together.

Thus, in 1985, began La Jara Trading Post’s steady, calculated growth—a business plan Jerry swears by and which grew revenues from $2.5 million to $5 million. If you recall that old-time kids’ fable, Jerry represents the ever-toiling tortoise rather than the flashy loser in the story.

“I knew hardware,” he recalls from semi-retirement today, “so I put in an Ace line. But I had to learn the lumber part. It didn’t have a lot of retail ERRY ANDERSON KNEW HOW

space, so I expanded. I added trucks and forklifts. And I expanded the customer base: farmers, ranchers, contractors, d-i-yers. You can’t just go one route,” he decided, long before it became fashionable to diversify. “Our salesmen dealt with everybody.”

To attract and keep that diverse clientele, he greatly expanded product lines, too. A look today at La Jara’s website, or a listen to its phone-hold message, alerts customers to the ease of one-stop shopping, from roofing to flooring, windows and doors to decks, cement and tools to garage packages, all reinforced by services—none too small, like glass cutting and screen repair, and none too major, such as free delivery and free estimates. In fact, La Jara’s original sole estimator has mushroomed to a crew of five among the 40 staffers it employs,

inflated in busy summers by college kids and returning veterans who’d retired.

Hardware is one thing; lumber is another. It’s easier to service folks who walk down the block for a bag of nails than to best the competition bidding on a $400,000 house. “On big projects, there’s a lot of competition,” Jerry swears. “People will look 200 miles to find the best price and best service. That’s why we have to keep expanding our customer base and our geographical territory, And that’s why I teach our employees that customers come first. We’re honest and we treat them respectfully, not like in corporate America,” he adds with a wry laugh. “We go the extra mile. For instance, I got a call at 10:30 at night that someone’s pump had gone out.

We got there with a new one.”

FREE DELIVERY is one tactic that allowed this Colorado hardware dealer to hit it off in lumber.

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The Merchant Magazine April 2011

Building-Products.com

The company’s free delivery service requires a big chunk of driving commitment in the long, narrow mountain valley in which La Jara sits. And one day, it didn’t happen. Jerry recalls that at 4 p.m. he had a contractor on the phone, “and he was madder than hell. He said we’d promised him a delivery at 8:30 that morning, so he’d hired extra crew. Turned out, we screwed up—everybody will make a mistake, and if you say you haven’t, you’re maybe lying—so I told him we’d pay his entire site workforce a day’s wages. We kept our word, and we kept him as a customer. Things like that pay off. In a small town like this, everyone knows three or four other people to tell a story to.”

A feminine voice takes up the tale. Jerry hands the phone over to his daughter, Sabrina Hufmann, one of four kids who took over the business in 2008. But Jerry gets one last word in on the handover, explaining, with a laugh, “At age 68, I began to notice that nobody was living forever, so I decided to sell the business while I could still remember my name. I asked the family who was interested. Of our 13 kids”—his, hers and blended—“four signed on. They’d started here in their grade-school years, raking the yard, cleaning the toilets. Some left to work in Denver, then returned. And we’d used some of the ideas they’d

BOOM TRUCK allows for rooftop delivery of shingles.

picked up, expanding our services, our product line, our facilities.”

“I hadn’t planned on a career here,” confesses Sabrina, “even though I’d grown up in the place. When we were little, we were expected to do well in school and also work— here, or someplace else. I went off to Denver for a while.

“On my first day back in La Jara, Dad called and asked me to help with inventory. Twenty-three years later, I’m still here,” she laughs.

“When Dad sold out to the four of us, he gave us an opportunity—but nothing else was handed to us,” she stresses. “We’d all worked long and hard—lots of blood, sweat and tears. What he did was offer us an option to buy him out—to launch a C Corporation.”

Sabrina, the oldest, signed on as secretary. She manages hardware, inside sales, and inventory in the La Jara store, in collaboration with Jared, president, who co-manages the yard. Hoyt manages the new Alcoma location, which we’ll learn about in a minute, and Greg, the youngest, is beancounter for the corporation—altogether representing, says Sabrina, “a good range of abilities, age (19 years between Greg and me, 10 between me and Hoyt), personalities and Building-Products.com

opinions, which often are very different. (Dad acts as the tie-breaker,” she adds.)

“Because we’re family members, there’s a different dynamic than in a traditional business,” Sabrina says.

“We’re not only business partners, we’re brothers and sister—which fosters conflict control. We hold an owners’ meeting monthly—a recent one lasted till 2 a.m.—and I’ll tell you what! We’re a pretty good mix of personalities.

But on any important decision, all four must agree.”

And often, agree quickly. When the chance to take on a second location arose in 2009—the Stock Building Supply store in Alamosa, 10 miles distant, became available—“we had two days’ notice to either jump on the bandwagon or miss the opportunity.”

They snapped it up without regrets. “We needed to expand, so we did,” Sabrina says. “It’s a huge, huge yard in a good location. We kept the managers and expanded the departments and services. Hoyt and I laid it out with very different merchandising. (How could corporate America have been so behind? she gasps at what they inherited.) And it’s been doing very well.”

Part of the reason for its success is that, while the two stores are only 10 miles distant from each other, their demographics span a greater divide. Alamosa Building Supply sits in a far bigger town, which offers the opportunity to court commercial accounts, while La Jara’s agricultural base has spawned a big new niche market—seed, which they store in a boxcar they purchased. “We’ve sold $100,000 worth so far, and the growing season hasn’t even started!” Sabrina reports.

But La Jara Trading Post’s biggest claim to dynamite niche marketing is its strong focus on special orders, whose numbers (and margins) are “huge, HUGE!” she attests. “One salesman alone just turned in 90 on his biweekly report.”

The goal, of course, is to sell the whole package. And the long-tern goal—call it a mission statement, if you will—is “to stay ahead of the game,” as Sabrina puts it.

“We’re always thinking, all four of us, coming up with ideas in order to improve and change. Change is hard, but you can’t grow without it,” she observes.

Some are relatively easy, like the company’s recent, forward-looking decision to go “green.” Others are harder to swallow, but necessary for survival, such as the partners’ decision to take pay cuts until the economic hurricane blows over. Other cost-savings moves include eliminating overtime and profit-sharing bonuses this year. “But nobody lost a job,” Sabrina can state with pride.

This corner of Colorado never rode the ’90s wave of unequalled prosperity, but neither did it hit the skids as hard as other parts of the country. “So, when the economy turns around, we’ll be fine,” says Jerry, who’s seen it all.

“We’ll ride the storm,” his daughter agrees. “We’ve laid a good foundation, developed a solid customer base. It’ll still be here to sell to our own kids.”

Carla Waldemar cwaldemar@comcast.net April 2011 The Merchant Magazine

19

INDUSTRY Trends

By Robert Berg, RISI

Glimmers of hope in latest housing data

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on housing inventory, vacancies and units in use indicate that the inventory correction in the shelter market is gaining momentum and finished the year a bit stronger than had been anticipated.

The following is a summary of the updated demand/supply balance in the U.S. shelter market.

HE MOST RECENT DATA

Supply Update:

Excess Vacant Shelter Units The excess inventory of vacant units for sale or rent has fallen 600,000 units, from 1.8 million units at the end of 2009 to 1.2 million at the end of 2010. Here’s how I arrive at this estimate: • Vacant units for sale or rent fell from 5.0% of the housing stock at the end of 2009 to 4.6% at the end of 2010.

• Over the late 1990s and early 2000s, vacant units for sale or rent hovered around 3.6%. I assume that this is the “normal” or equilibrium vacancy rate for a market in balance.

• The difference between the actual vacancy rate for housing for sale or rent less the average is 0.9%, which is equal to 1.2 million units given that current housing stock was 130.8 million units.

Once this excess of vacant units for sale or rent is absorbed and the vacancy rate returns to equilibrium, then demand for shelter will have to be met through new shelter production and not existing homes.

Demand Update:

Household Formations & Pent-Up Demand for Housing Household formations gained momentum in 2010 as reflected by the

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gains in the number of housing units in use. At the end of 2010, the number of houses in use (which is equal to households by the Census’ definition) was up 1.08 million units from the end of 2009, after increasing at an average annual rate of 370,000 households per year in 2007-2009.

With household formations falling well below the pace that underlying demographics support, we have built up a pool of pent-up demand that I estimate at around 1.24 million families. The rate at which this pool of potential households moves into the shelter market heavily depends on employment. Note, I am not saying anything about whether they are buying or renting or moving into a singlefamily, multifamily, or mobile home.

All I am saying is that they move into a “shelter” unit.

Over the next year, demographics will support the formation of another 1.0 million households, which would push the pent-up demand to 2.3 million units if none of this demand has already moved into a shelter. On the supply side, our forecast for housing starts and mobile home production net of normal demolition levels will net an additional 400,000 units to the housing stock through 2011, which, when added to the excess inventory at the end of 2010, puts the number of units that needs to be absorbed in 2011 to clear the overhang at 1.6 million units.

In our forecast, growth in the economy gains momentum in 2011 and employment improves (the number of people employed, not necessarily the unemployment rate), which will unleash the pent-up demand for shelter and excess inventory will be absorbed by mid-2012 or earlier.

An Observation:

Housing Stock Reported for End of 2010 Likely Too Low The Census reports that the housing stock increased 700,000 units to 130.8 million units at the end of 2010.

Additions to housing stock are equal to new homes completed plus mobile homes delivered. Conventional housing completions in 2010 fell 18% from 2009 to 650,000 units in 2010. And, assuming mobile home production is close to the units put in place, just 510,000 mobile homes were added to the housing stock.

Given the increase in housing inventory, completions, and mobile home production in 2010, the implied loss of shelter units (demolition) in 2010 was just 50,000 units (0.04% of housing stock). From 1999 to 2009, demolitions averaged 0.18% of housing stock. Applying this rate to housing stock at the end of 2009, demolitions would be closer to 200,000 units and housing stock would be lower.

This is key because these uncounted demolitions add to the inventory of vacant homes. Keep an eye on this estimate because it increases the share of shelter units in use to levels closer to something near equilibrium.

So the inventory correction in the housing market continues to unfold and it looks like the excess inventory will be absorbed by the end of 2011 or the first half of 2012, depending on how fast the pent-up demand moves into the shelter market. We should start to see spot (sub-regional) tightness in the housing market by the end of 2011 if these data are correct.

– Bob Berg is principal economist for wood products at RISI. Reach him at (814)-441-6110 or bberg@risiinfo.com.

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OLSEN On Sales

By James Olsen

Welcome to my world

N

INETY PERCENT OF THE PEOPLE we compete against are using the following approach on every call: Quotron: “Good morning, Bob. How are you? I’ve got a 2x4 92-5/8-inch Sinclair Lewis stud that I can get to you at $325/MBF. Can you use that?”

Customer: “No thanks, don’t need it.”

Quotron: “Anything else you need?”

Customer: “No thanks.”

Quotron: “What’s coming up next?”

Customer: “Nothing I can think of. Call me next week.”

Quotron: “Okay. Thanks. Have a nice weekend.”

Customer: “You too.”

There is no engagement. There is no mystery or intrigue.

No desire or spunk is shown. This Quotron is an information dispenser. He gives information and lets the customer decide. This is not salesmanship. This is being a quotron.

These (sales)people get treated badly and blame it on the customer.

Since no information is ferreted out about the customer’s next purchase, the next call and the call after that will go the same, ad infinitum, ad nauseum.

These quotrons sends a terrible message. They do not fight for the business. If we do not show that we want the business—by creating a sales event, engaging the customer, fighting for the order, asking follow up questions, and in general just not taking no for an answer—we send the message that we don’t want the business.

Struggling sellers think that being super-quadruple-easyto-get-along-with will entice customers to buy from them.

This “Whatever you want” attitude does not sell. Buyers don’t think, “Wow, Nancy is easy to get along with, so I’m going to buy from her.” They think, “Nancy has good prices, but she never asks for the order. As a matter of fact, she’s easy to say no to. But she sure keeps that Son-of-aGun John honest, so at least she’s doing that for us.” (John is the SOG who is getting all the business.)

Salesperson: “Good morning, Bob. Last time we spoke

you said you were getting close to booking some studs. We went out yesterday and made a great buy on 10 cars of studs. The market is strong and we are selling these well.

We’ve got three left, so why don’t we put a couple on the books for you?”

Customer: “What’s the price?”

Salesperson: “That’s the icing on the cake, Bob. We’ve been selling these to very competitive customers. I sold one this morning to this guy in Texas, and he doesn’t even like to buy from me, so I know these are good. Before I give you the price, if we agree it’s good, how many studs can you use?”

Customer: “You always say you have a good price, but, yeah, if the price is good, I can probably use a couple.”

Salesperson: “A couple like ‘three a couple’ or a couple like ‘two a couple’?”

Customer: “A couple like ‘two a couple’ and if you don’t give me the price soon, it’s going to be a couple like ‘place them with someone else’ a couple.”

Salesperson: “We’ve been selling them at $325/MBF. What are your order numbers?”

Customer: “Okay. I’ll take two. Use ‘verbal Bob1’ and ‘verbal Bob2.’”

Salesperson: “Thanks for these. Why don’t you take us off the market on that last stud? You bought the first two because they are a good deal. Let’s push the shipment on the third and put that one on also.”

Customer: “Two is it. Aren’t you ever satisfied?”

Salesperson: “I’m happy when you’re happy, Bob, but I’m never satisfied. Thanks for the orders.”

This seller puts on a performance for his customer. He makes his call “an event.” The buyer may not like or agree with the seller’s approach, but there is intrigue and engagement. Starting the conversation off with a positive story sets the (positive) tone for the call. Holding back the price creates tension and interest. The customer wants to know that price.

The first seller dispenses information. All that is left to say is, “I’ll let you know.” All questions asked and answered. No intrigue.

No tension. No engagement. No sale.

We must draw the customer into our world, not the other way around. Inviting customers to our world is the job of the master seller and will always produce better results than being a quotron in our customer’s world.

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

DEALER Briefs

Dunn Lumber closed its 44-year-

old yard in Marysville, Wa., March 31.

Most staffers, including mgr. Dan Luxmore, transferred to Mill Creek, Wa.

Hadlock Building Supply , Port Hadlock, Wa., is working with True Value to remodel its interior.

The redo, expected to be completed in early May, includes installing new lighting, reconfiguring aisles to improve customer access, and adding decorative hardware and paint lines.

Payless Building Supply , Anderson, Ca., sustained damage to some inventory March 26 after heavy rains and a blocked culvert caused partial flooding of its yard.

Pollock Pines True Value Hardware, Pollock Pines, Ca., had to close until it could repair its roof, which collapsed under heavy snow March 27.

Franklin Building Supply ,

Pocatello, Id., added a design center.

True Value Hardware is targeting a mid-April opening for a new 12,600-sq. ft. store in Nampa, Id. Ace Hardware opened March 16

in San Diego Country Estates, Ca. Owners Ralph Peebler and Jeff Fabian will hold a May grand opening.

Joe’s Hardware, Fallbrook, Ca., has added a branch in Canyon Hills (Lake Elsinore), Ca. Lumber Liquidators purchased the former MI Windows & Doors showroom in Rancho Cucamonga, Ca., to open a Cabinets to Go outlet.

Former Piedmont Workers Launch Millwork Company

Architectural Wood Products, Pacheco, Ca., held a March 11 open house in a remodeled 10,000-sq. ft. warehouse next to the former door shop of Piedmont Lumber.

Rob Myer, grandson of Piedmont’s founder, heads up the new business, which offers custom finish carpentry such as mantles, pergolas, and wainscoting to designers, contractors and other yards. He was in charge of the architectural millwork division at Piedmont’s Walnut Creek yard, which was destroyed by fire a year ago.

“The anniversary of the fire, that was our soft deadline,” said Myer, whose grandfather started the business during the Great Depression. “We wanted to celebrate our birth and pay respect to where we came from.”

Myer and his team of former Piedmont employees have created what he calls “an art gallery for carpenters,” a showroom featuring the company’s interpretations of historical mouldings.

Stephen Gusthafsson, who was assistant manager of Piedmont’s Walnut Creek location, is now sales manager at the new company.

Sparks Yard Calls It Quits

After 38 years in Sparks, Nv., owners Randy Blackwell and Mike Ceccarelli have closed B&C Builders Supply and liquidated its inventory.

The 6.5-acre property with 28,000-sq. ft. of enclosed building space and 25,000 sq. ft. of covered roof structure

is up for lease.

“We tried to make it work, but we just can’t keep feeding the business,” said Blackwell. “If we could see a light at the end of the tunnel, some light, maybe we would strive to stay in business.”

At its peak, B&C had 39 employees, but at closing was down to just nine. “It’s just the economy. It’s just not worth staying open anymore,” he said. “But I’m not going to dig a hole to China and not be able to get out.”

The owners agreed that bankruptcy was not an option. “We were both born and raised in this town,” said Blackwell. “We can’t start filing bankruptcy and all that kind of stuff and be able to walk around this town. We’re connected to too many people, way too many.”

New Supplier Moves In

S&H Building Supply has opened in Burns, Or., in a facility previously occupied by Don’s Windows, Doors & More.

“I worked at Don’s for the past four years, the last two as manager, so it was a good fit,” said co-owner Mark Sullivan.

The new store will carry dimensional lumber and building materials, and offer free delivery, on-site visits, and estimates. Plans are to eventually add tool rentals.

Sullivan said, “I think our biggest asset is customer service. People like to be greeted when they come though the door and we do that. A $5 ticket is as important to us as a $500 one.”

Lowe’s opened a 103,000-sq. ft. store with garden center March 24 in Puyallup, Wa. The chain also withdrew plans to build a store in Lafayette, Co., and placed its 21-acre lot up for sale; is awaiting approval of its environmental impact report for a proposed store in Petaluma, Ca., and begins construction this spring on a new store in Colorado Springs, Co., to open by January.

Habitat for Humanity this month is relocating its ReStore discount LBM outlet in Sierra Vista, Az., to a 7,000 sq. ft. showroom—four times the size of its current location.

Building-Products.com

April 2011 The Merchant Magazine

25

FIRST Person

By Colin McCown, American Wood Protection Association

Sorting out nonstandardized treated wood

T

ODAY , OVER HALF

of the treated lumber sold in retail stores does not meet the standards of the American Wood Protection Association. It’s critical that buyers and sellers are able to see through misleading labeling and clearly distinguish treated wood that meets the standards from wood that doesn’t.

The problem traces back to about 10 years ago, when several wood preservative manufacturers entered into a voluntary agreement with the EPA to restrict the types of wood products that could be treated with CCA, starting January 1, 2004.

Dimensional lumber treated with CCA could no longer be sold into most commercial and consumer markets, so a number of new preservatives entered the marketplace to fill the void.

Initially, most of the next-generation treated wood products were AWPA standardized—but this quickly changed as competition between chemical manufacturers, wood treaters, and retailers heated up in this challenging economic environment.

To increase market share, some manufacturers began offering wood treated to lower preservative retention

amounts than those listed in AWPA standards or they used preservatives not standardized by AWPA. AWPA standards are important to the building products market for many reasons: • Most, if not all, of North America’s experts in wood protection serve on AWPA’s technical committees and provide the critical peerreview process needed to distinguish effective preservatives from those that may not perform well.

• AWPA is accredited by the American National Standards Institute as a standards development organization, which means that AWPA’s standardization process is open, consensus-based, requires consideration of all viewpoints, and provides due process for all participants.

• AWPA standards are the only standards prescribed directly in the major model building codes for uses where treated wood is required.

• AWPA also requires that the manufacturing plant is audited by a thirdparty inspection agency in accordance with the Treated Wood Program of the American Lumber Standard Committee, which operates under procedures

AWPA U1 UC4A

Ground Contact, General Use

WITH SO MUCH non-standardized treated wood flooding the market, it’s critical that buyers and sellers pay attention to the labels so they can tell the difference.

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established by the U.S. Department of Commerce.

• Furthermore, AWPA has been developing standards for wood preservatives and treated wood since 1904.

There are no mandatory fees for obtaining AWPA standardization, just the submission of sound, scientific data supporting the performance of the product under consideration. AWPA and its standards development process may not be perfect, but it does provide the most rigorous review of wood preservative performance data by people whose expertise is in wood deterioration and protection.

Unfortunately, AWPA standardization is so important that a significant amount of effort is employed to make people think non-standardized products are equal to the treated wood products listed in AWPA standards.

At a recent treated wood industry conference, a proposal was made to include non-AWPA standardized treated wood in the “CheckMark” program, a voluntary program administered by the Western Wood Preservers Institute that helps individuals readily identify wood treated in accordance with AWPA standards. The presentation featured a graphic of a product evaluation report with an ANSI logo to show that the organization producing the evaluation report was also ANSI accredited. The logo was quite blurry, so it was not possible for the audience to see that the logo was for ANSI product certification—a program that has nothing to do with product performance or standardization.

The presenter discussed AWPA standards, then displayed a slide showing that over 80% of building code officials preferred evaluation reports. The study referenced, however, had nothing to do with treated wood, nor was it a comparison of Building-Products.com

AWPA standards to evaluation reports. The presentation also indicated that because product evaluation reports are based on the same data as indicated by an AWPA document referred to as “Appendix A,” the products have the same criteria as those standardized by AWPA. The presenter neglected to mention, however, that Appendix A expressly limits its use to the AWPA standardization process, and that the critical element of expert peer review is missing outside of AWPA standardization.

Another problem in the marketplace is product labeling. Many manufacturers of products that do not meet AWPA standards tend to use AWPA’s Use Category designations on the treated wood end tags. This problem became so prevalent that AWPA approached an organization that develops product evaluation reports to request their assistance in preventing deceptive labeling practices. One of their committees ultimately agreed that if an AWPA Use Category designation was used on the end tag of materials not meeting AWPA Standard U1, the tag must also read “Not listed in AWPA U1.” Over time, however, the AWPA Use Category remained a prominent part of the front side of the label, and some treated wood manufacturers relegated the required language to the back of the label, buried among several lines of fine print. AWPA frequently receives inquiries from people who have been led to believe that this means the product meets AWPA standards, expecting AWPA to provide support for such non-standardized products.

So, how does one determine if treated wood meets AWPA standards?

The easiest way is to look for “AWPA U1” on the end tag. If you don’t see it, then the treated wood probably doesn’t meet AWPA Standards.

Another helpful tool is the presence of a “CheckMark” next to the logo of an ALSC accredited agency. Wood treated to AWPA Standards must also

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identify the producer, preservative, retention (amount of preservative), and the AWPA Use Category.

For more information, visit the References and Technical Information pages of www.awpa.com.

– Colin McCown is executive vice president of the American Wood Protection Association, Birmingham, Al. Reach him at (205) 733-4077 or mccown@awpa.com

WWW.RAILSIMPLE.COM

Pre-Measured

Pre-Slotted

Easy

April 2011 The Merchant Magazine

27

SUPPLIER Briefs

United Pacific Forest Products, Tigard, Or., has Bilet Products ,

purchased pallet/industrials producer Sherwood, Or.

Boise Cascade is now distributing all AZEK Building Products lines throughout California.

ABC Supply sold the assets of American Slate Co., Walnut Creek, Ca., to specialty hardware distributor Great Northern Building Products, Louisville, Ky. Potlatch Corp., Spokane, Wa., has withdrawn the listing of its common stock from the Chicago Stock Exchange, but will continue listing it on NASDAQ. Potlatch eliminated the dual listing to streamline operations and eliminate duplicative administrative requirements and costs.

Fowler & Peth, Denver, Co., is now distributing GAF’s DuraLife Natural Grain decking collection and RailWays universal railing systems.

MiTek, Chesterfield, Mo., has acquired USP Structural Connectors, Burnsville, Mn., from Gibraltar Industries,

Hamburg, Germany.

Jeld-Wen, Klamath Falls, Or., is permanently shuttering its millwork distribution center in Tampa, Fl., April 8.

Knauf Insulation, Shelbyville, In., filed suit alleging CertainTeed’s Sustainable Insulation infringes on the

patent for its ECOSE Technology.

CertainTeed added colors Jatoba and Spanish Cedar to its line of EverNew LT cellular PVC decking.

Versatex is a new global sponsor of Katz Roadshow

workshops.

Huber Engineered Woods has received a verification

of attributes report through ICC Evaluation Service for its AdvanTech flooring and Zip System sheathing.

National Gypsum, Charlotte, N.C., has launched a new website at www.drywallfacts.com.

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The Merchant Magazine April 2011

Oregon Producer Survives Fire

Fire struck Natron Wood Products, Jasper, Or., on March 13, but two of its kilns were back in operation less than a week later. The company’s other kilns were expected to be operational by early April.

According to authorities, the fire scorched lumber and destroyed a 120-ft.-long room that houses equipment responsible for controlling airflow through several nearby wood-filled kilns. The kilns themselves were not seriously damaged in the blaze.

“It could have been a lot worse,” said fire chief Ed Rowell. “It was a matter of getting everyone there as quickly as possible and getting crews together to get the job done. It was definitely a team effort.”

He said that although the cause of the fire is unknown, investigators are certain the blaze was not intentionally set.

No one was injured in the blaze, and estimates of damage are not available.

Utah Logger Restarts Wyoming Mill

Thompson Logging, Kamas, Ut., has leased a sawmill from the town of Encampment, Wy., to process beetlekilled trees from nearby Medicine Bow National Forest.

President Terry Thompson said that the company expects to continue the operation for years due to the large amount of beetle-killed timber in the area. About 15 to 18 workers will be employed.

Jeld-Wen Kicks in for Soccer Arena

Jeld-Wen, Klamath Falls, Or., has entered into a multiyear deal with the Portland Timbers soccer team that will put the window and door maker’s name on the team’s newly renovated stadium in downtown Portland, Or. Jeld-Wen Field will host the team’s home games, as well as college and high school football games and other events. In addition, Jeld-Wen will be known as the official window and door provider of both the Timbers and Major League Soccer. Terms of the deal were not disclosed.

Clarification

The machine applicators listed on page 9 of the March issue were not authorized by the Western Red Cedar Lumber Association. As well, the list was not meant to be exhaustive and may have included companies that distribute preprimed western red cedar, but do not operate their own finishing equipment.

Building-Products.com

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GREEN Retailing

By Jay Tompt

See green

Practical eco merchandising

C

and getting them into the hands of customers is an art that, when practiced well, makes good merchants great.

The last few years, there’s been a rush by manufacturers to get their green innovations to market. Many are going to be clear winners and will make a difference in transforming the built environment. Unfortunately, along with the rush has been the slapdash—products presented as earning LEED credits, or being less toxic, or ecologically benign, when they are not. Whether by deliberate deception or honest mistake, green washing has created confusion and skepticism in the market.

It’s not so easy to pick green winners, but there are practical steps that merchandisers can take to reliably evaluate the green-worthiness of any product. In general, the goal is to identify merchandise that meets certain criteria, both yours and your customers’. There are a variety of product certifications and, of course, LEED and other green building rating systems provide relatively clear criteria. But there is no master green products list to go by, and no matter how comprehensive, certifications and building rating systems are not going to cover all the product categories stocked in most stores and yards.

But if you’re willing to roll up your sleeves and “green it yourself,” there’s another way to look at whether the merchandise you choose to sell is green worthy. Start by asking: Does it harm or benefit the environment? Does it pose health risks or promote healthy lifestyles? Are communities positively or negatively affected in its manufacture? Does it work? Will it sell? These questions should take in the entire life cycle of the product, which includes looking at the impacts relating to raw materials, manufacturing process, distribution, use, and disposal.

The broad categories addressing human health and safety, ecological safety, and social responsibility provide the HOOSING WINNING PRODUCT LINES

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The Merchant Magazine April 2011

background for more specific product criteria and attributes. Here’s a partial list of what to consider: Energy – Products that conserve energy, produce renewable energy, or are made from renewable energy sources.

Water – Products that conserve water usage, especially the use of fresh, potable water. Also, product alternatives that don’t pollute water sources or aquatic eco-systems.

Toxic chemicals – Products that are made with nontoxic (or least-toxic), low-risk chemicals and other components.

Healthy and sustainable practices – Products that contribute to healthy and sustainable practices, such as rainwater harvesting, composting, etc.

The evaluation process starts with the manufacturer, who should provide credible product information—preferably with third-party documentation supporting their green claims. But that may not be enough. Consult with independent experts and review third-party information on the Internet, too. There are several helpful databases online that will show what’s known about specific chemicals.

Comparing products in the same category will help to identify the “greenest” in class. Finally, there must be a judgment about whether or not the product does the job and will sell. Get a sample and take it for a test spin.

If green merchandisers are defined by product selection, they are also defined by products not selected. There are plenty of useful products for which there may be better or greener options. But there are also junk products for which the only “green” option is that they simply not exist. Every dealer in this supply chain has experience with junk, if only by accident.

These are products so poorly designed, manufactured so cheaply, and are so obviously heading straight for the landfill that they cannot be justified no matter how low the price point.

Eliminating the worst junk from inventory is not only practical, it’s also a virtuous step toward sustainability.

Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com

Building-Products.com

Northwest Chain Readies 5th

This summer, Mitchell Hardware, Bend, Or., is opening its fifth Ace location—a 15,660-store with attached garden center in Spokane, Wa. The company has four other Ace Hardwares in the Northwest.

MicroPro/MCA Uses Expand

Osmose expects to see expanded use of its MicroPro/Lifewood and Sustain micronized copper azole wood preservatives following revisions to its ICC-ES Evaluation Report.

The revised ESR-2240 now allows incised Douglas fir to be treated with MCA, permitting potentially greater use of the chemical in the West.

As well, the revision permits carbon steel fasteners to be used with MCA-treated wood in UC1 and UC2 interior, above-ground, weather-protected applications, such as sill plates, interior framing, and interior trusses.

Millwork Producer Licenses Surface Coating Technology

Woodgrain Millwork, Fruitland, Id., has licensed exclusive use of Eastman Chemical Co.’s Eastman Cerfis technology for moulding and trim products.

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The Merchant Magazine April 2011

The patented surface technology provides the ability to precisely coat multiple surfaces of moulding or trim for enhanced product aesthetics, performance and consistency. Products made with Cerfis can be primed or finished, allowing for easy installation.

Rosboro Launches Online Project Showcase

To kick off the spring building season, Eugene, Or.-based Rosboro is calling on builders, architects and engineers to share pictures and stories of current projects that use the company’s products.

Its new promotional campaign, “Made With Rosboro,” will highlight one project every month via Rosboro’s website and Facebook page.

In addition to having photos, plans or drawings of their projects featured online, selected projects may also qualify for a professional photo shoot, in-depth case study analysis, or prominent placement in Rosboro marketing collateral and advertising.

New Owner for Extrusion Line

Jeld-Wen, Klamath Falls, Or., agreed to sell its window vinyl molding plant in Yakima, Wa., to Mikron

Industries, Kent, Wa. Mikron, a division of Quanex Building Products, is buying equipment and other assets from the facility’s extrusion operations.

Jeld-Wen will retain its nearby window assembly plant and continue purchasing extrusions and other materials from Mikron.

Osmose Buys Copper Firm

Osmose, Griffin, Ga., has acquired the production assets of Peninsula Copper Industries, Hubbell, Mi. PCI has been a copper compound supplier to Osmose for over 25 years.

“The acquisition of PCI is another important step in our integration into the manufacture of copper compounds that are essential to the production of our MicroPro, NatureWood ACQ, and CCA preservative products,” said Osmose president Paul Goydan. “This acquisition strengthens Osmose’s commitment to support the wood preservation business in North America and the world.”

PCI president Kevin Codere said, “PCI will continue as a distributor of its established products under a contract manufacturing arrangement with Osmose.”

Building-Products.com

KAHLE On Sales

By Dave Kahle

The ultimate survival skill for the new economy

W

E’RE LIVING IN

incredibly turbulent times. In spite of newspaper headlines proclaiming growing employment and a slowly growing economy, many business people admit to a pervasive feeling of uncertainty and confusion about their businesses.

The well-spring of this uncertainty lies in one of the characteristics of the new information age. Business people are being buffeted by an increasingly rapid rate of change. Consider that in 1900, the total amount of knowledge available to mankind was doubling about every 500 years. In 1990, it was doubling every two years. Today, according to some, the rate of change is doubling every 35 days!

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The Merchant Magazine April 2011

Imagine the implications of that increasing rate of change. It means new products, new regulations, new market configurations, new customers, and new technology in almost every industry. It’s no wonder that we’re confused and uncertain about what to do. It wasn’t so long ago that we had a growing market to cover over many of our flaws. Not true today.

And the growth of that knowledge continues at an expanding rate. One futurist predicts that today’s high school students will have to absorb more information in their senior year alone than their grandparents did in their entire lifetime.

The effect of that snowballing rate

of change on our businesses and our jobs can be cataclysmic. It’s almost as if a malevolent spirit were stalking our economy, rendering all the wisdom of the past useless and casting a spell of confusion and uncertainty over the land.

The indications are that this rapid state of change will not be a temporary phenomenon. Rather, it will be the permanent condition we must accept for the foreseeable future. Rapid change is not a phase we’re passing through; it’s a process we’re entering.

That means the conclusions, paradigms and core beliefs on which we based our decisions just two or three years ago are likely obsolete today—

Building-Products.com

and those we develop today will be obsolete in a couple of years. We can count on this continuing obsolescence of our best ideas and strategies to be the constant state of affairs.

One of my clients recently told his employees, “The only thing you can count on is that you won’t be doing this job in three years.” His point was that the job will change in that period of time to such a degree that it’ll be a different job. The technology used will likely change, as will the customers, systems, and focus of the job.

The insightful person will accept rapid change as a defining characteristic of our economy and will plan to effectively deal with it on an on-going basis. Instead of thinking that we should just persevere until it’s behind us, we should prepare for rapid change to be a way of life.

What’s the best way to go forward in the light of this rapid change? What mindsets and skills can we adopt that will equip us to survive and prosper in turbulent times?

There is one core skill that will define the most successful individuals.

It’s the ability and propensity to engage in self-directed learning. The only sustainable, effective response to

a rapidly changing world is cultivating the ability to positively transform ourselves and our organizations. That’s the definition of self-directed learning.

By “learning,” I don’t mean just the acquisition of new information, although that is a necessary prerequisite. Rather, I mean the kind of learning that requires one to change behavior on the basis of an ever-changing understanding of the world. Learning without behavior change is impotent.

The individuals who become disciplined, systematic, self-directed learners will be the success stories of the new economy. Likewise, organizations that become learning organizations will have the best chance of surviving and prospering.

Read what other have said about it:

“The key thing as we go forward is the ability to learn. You cannot arrest the pace of development in the marketplace, in the world, socially and technologically. It is coming at an increasing rate. You’ve got to be able to learn and adapt.”

– Beale Because of the forces surging through our economy, it’s safe to say that tomorrow will be significantly

different from today. It will be more complex and somehow significantly changed. That will be true of all the tomorrows in the foreseeable future.

The most skilled employees, therefore, will be those who can continually access the changing facts and growing complexity of their jobs, then change appropriately.

“We understand that the only competitive advantage the company of the future will have is its managers’ ability to learn faster than their competitors.”

– Arie de Geus, founding member, Society for Oranizational Learning In a fast-changing world, today’s hot new product is tomorrow’s dinosaur. More important than any one product is the ability to continually create new products. Today’s strongest employee could very well be tomorrow’s employment problem.

More important than any one employee is the ability to find and maintain employees who are constantly growing. Today’s closest customers could be out of business tomorrow. More important than any one customer is the

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The Ultimate Survival Skill (Continued from previous page)

ability to attract and retain customers.

All are applications of the ultimate competitive advantage—the ability to learn faster than your competitors.

“In fact, I would argue that the rate at which individuals and organizations learn may become the only sustainable competitive advantage.”

– Ray Stata, co-founder, Analog Devices As the economy becomes more and more global, competition will increase. Few businesses will enjoy a secure market position. The quality of competition will also improve as competitors strive to outdo one another in providing customer service and value-added products and services. The survivors will be those who know how to learn and do so faster and more systematically than their competitors. These learning organizations fill themselves with people who regularly engage in self-directed learning.

How, then, do you instill self-directed learning in your organization? Here are three tactics to begin the process.

1. Wipe the slate clean.

Imagine that you have written the history of your company or your career on a blackboard. You have every decision, every strategy, every success, and every failure noted in detail. The sum of this experience provides the rationale for why and how you do everything that you now do.

Now, take a wet towel and wipe the board clean. Erase the past. As you do so, you eliminate the unspoken accep-

tance of the way things are and replace it with the new understanding that things may not be the way they should be. Just because something is, doesn’t mean it should be.

The reason you started doing something may no longer exist. Remember, with a world turning over completely every two to three years, any decision or procedure that had its roots in a situation that is three or more years old may not be justified today.

This little exercise provides a mental image for a change in thinking that needs to take place if you’re going to become a learning organization. You must begin to think about things that you do, not on the basis of the past, but rather on the basis of the present and the future.

It’s a way of eliminating one of the biggest barriers to learning and changing: the mental obstacles that we put in our own way. For example, one of my clients became frustrated with his continuing inability to motivate his sales force. He spent much of his mental energy and financial resources attempting to get his force of largely independent agents to spend more time with his product. Yet he never thought about going to market in ways other than through his traditional methods. When we broke down that barrier of relying on the past and wiped the slate clean, we discovered a marketing method that holds tremendous potential for his business. However, it took a change in thinking—a thought process that wasn’t tied to his past—in order to look at the situation on the basis of the present and the future, rather than the past.

That principle can be applied in every area of your business, from something so fundamental and important as your method of reaching your customers, to something as

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The Merchant Magazine April 2011

Building-Products.com

mundane as the way you answer the phone or fill out a receiving document.

2. Give learning a strategic emphasis.

Build in the need to become a learning organization in the most fundamental building blocks of your business.

Write it into your mission statement. Get the board to pass a resolution advocating it. Display your commitment to it predominantly in your personnel manual. Talk about it at employee meetings. Make it an agenda item in executive meetings. Articulate it as an initiative in strategic planning sessions. And, begin to model learning behavior yourself.

3. Make self-directed learning a part of everyoneâ&#x20AC;&#x2122;s job description.

Begin to create learning expectations for yourself and all your employees. Talk about their need to learn and grow.

Include it as an item on every job description.

Then encourage, develop and support learning opportunities throughout your organization. Some companies require every employee to attend a certain number of outside seminars, Internet-based courses, or other learning events per year. Others reward the effective application of learning. In other words, when someone finds an effective way to change things, reward them. One of my clients holds a monthly employee meeting where the employee who has made the biggest positive change in the way things are done is rewarded with $150 cash bonus.

Start implementing these strategies and youâ&#x20AC;&#x2122;ll take the first step to becoming a learning organization and mastering the ultimate skill for the new economy. â&#x20AC;&#x201C; Dave Kahle is a sales consultant, trainer and author. Reach him at (616) 451-9377 or via www.davekahle.com.

Building-Products.com

April 2011 The Merchant Magazine

37

FAMILY Business

By Craig E. Aronoff

Summer jobs for family members

T

HERE ARE LOTS of good reasons to hire your children for summer jobs: to get them up in the morning and give them a chance to be productive, to provide a tax-deductible allowance, to fill an important business need, or to entice them into a future with the family business. But as with most family-business decisions, extra care is required because such decisions affect both the family and the business.

For most youngsters, the experience is positive. The son of the owner of family business in Wisconsin explains: “Working summers in our business was great. I learned a lot about the business, but mostly I had a

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The Merchant Magazine April 2011

chance to earn the respect of the employees in the warehouse. I showed them I could work as hard as anyone on a hot day. I showed them I respected their jobs. And after a while they trusted me enough to tell me some great stories on how management sometimes didn’t listen enough to the employees.”

There can also be some unexpected consequences. Here is the experience of a daughter in a trade magazine publishing firm: “When I graduated from high school, I spent a few weeks at the magazine before leaving for a long family vacation. I was thrown into some copyediting where I had no confidence. When I left, the manager in

charge told me I would never be a good journalist. That made me angry, and in college, I worked for the school literary publication and did everything from layout to writing poetry to prove him wrong!”

Surely, the manager in the second example was unhappy at having to put up with the boss’ daughter for such a brief time when little could be accomplished. Perhaps that was at the root of the inappropriate condemnation. Or maybe the daughter didn’t really take the job seriously, having her mind on the upcoming vacation, college, whatever. (Happily, it didn’t turn out as badly as it might have.)

Summer jobs can affect future expectations and effectiveness, so it’s important to pay close attention to the fundamentals: • Put the kids into real jobs that need to be done and that they have the maturity and ability to do.

• Avoid observer and filler jobs that just bridge the gap between personal vacations or other interests.

• Pay them what the job is worth— no more.

• Warn their managers that they are coming, and that they should be managed the same as anyone else.

Building-Products.com

• Let them get to work on their own so they aren’t compromised nor tied to your car-pool schedule.

• Don’t cross-examine them for information about other people. Instead, show trust for your employees.

In these common sense ways, you will show respect for work, money, your children, the business, and the people who work there.

Conversely, the kids must realize their responsibilities and the potential consequences of their behavior.

Through excellent attendance, hard work, maintaining others’ trust, and giving the extra effort for the employee team, they will earn the respect and confidence of the organization for a long time to come.

A summer job can open a youngster’s eyes to the realities of being the boss’s offspring. The child likely will become aware that everybody is talking about him, his work habits, and his capacity for future leadership. It may seem unfair to the youngster, but he will learn that’s the way it is.

Being in a fishbowl and being judged by everyone might discourage a family member’s interest in a future in the family’s business, but that’s not so. Our experience leaves little doubt that involving your children in meaningful part-time or summer work increases the odds that they will have a more positive attitude toward a career in the family firm.

Summer jobs give youngsters a chance to prove their ability and willingness to handle hard work. Here are some other considerations related to summer work for your children: Some families insist that their children do something entrepreneurial, on their own, for at least one summer.

They may develop their own lawn service, recruit tennis students, etc.

Others feel that everyone should have some retail experience to learn how to deal with the public and develop some selling skills.

Many families require that for at least one summer during college, their offspring must find their own jobs elsewhere. Gaining outside experience in another business for three to five years before full-time entry into the family’s business is a good principle.

Similarly, some families maintain that the job should be in someone else ‘s family business. Then, besides gaining experience working for another business, the offspring sees how others perceive family owners.

One family we know encourages Building-Products.com

their children to work elsewhere and directly for an entrepreneur. This kind of experience offers the chance to observe entrepreneurial thinking and action, and to understand how important entrepreneurship will be to the future success of the family’s own firm.

Whatever your approach to summer work for your children, it’s a decision that benefits from care and close reflection. Like so many decisions for a family in business, the real value comes from how you make the deci-

sion and why you believe what you do. Each decision powerfully communicates to members of your family and business important values for future success.

– Craig E. Aronoff is co-founder and principal of The Family Business Consulting Group, Marietta, Ga.; (800) 551-0633. He can be reached at aronoff@efamilybusiness.com.

Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.

April 2011 The Merchant Magazine

39

MOVERS & Shakers Chuck Robinson, store mgr., Ganahl Lumber, Laguna Beach Ca., has retired after 45 years at the yard.

He is succeeded by Barry Pino, who transferred from Capistrano Beach, Ca. Don Willard, ex-Capital Trading, and David Trybom, ex-Stockton Wholesale, are new to sales at Redwood Empire, San Jose, Ca. Cat Byers is the new sales mgr. at Intermountain Stud, Montrose, Co. Joe McCarron, ex-Las Plumas Lumber & Truss, has joined the sales team at Parr Lumber Co., Chino, Ca. Gail Overgard, v.p.-international division, Timber Products, Springfield, Or., is retiring after 50+ years in the industry. Mike Clausen, exPenrod Co., has joined TP as v.p. of sales for hardwood plywood and the international division.

Bill Oâ&#x20AC;&#x2122;Neill has been appointed an architectural specialist at SierraPine Ltd., Roseville, Ca. Scott Brotherton is now mgr.-north central business development.

Larry White is the new sales mgr. at Dorris Lumber & Moulding, Sacramento, Ca. Patrick Ragan, ex-Weyerhaeuser, is a new account mgr. and Judith Nanez is now in inventory control at Capital Lumber, Albuquerque, N.M. Sal Camarda, ex-Dixieline/ ProBuild, is a new product mgr. in Chino, Ca., and Dan Nuttall, exWeyerhaeuser, is a new account mgr. in Salt Lake City, Ut. Mark Baker, ex-Scotts Miracle-Gro, has been named president and c.e.o. at Orchard Supply Hardware, San Jose, Ca. Dan Hilliard has joined the sales team at Canyon Creek Cabinet Co., Monroe, Wa. Miguel Zepeda, ex-Norandex, has joined tool manufacturer MAX USA, as Northwest regional sales executive, based in Portland, Or. Brent Fox has been named v.p. of national business development for ABC Supply. Kevin Hendricks is now v.p. of divisional operations & strategic business units.

Gary Loosle was appointed merchandise mgr. for lawn & garden/green goods at Do it Best Corp., Fort Wayne, In., succeeding Randy Kipfer, who has retired after 35 years with the co-op. Josh Meyer is the new merchandise mgr. for paint & sundries, replacing retiring 33-year veteran Dick Wise, and Chris Steinlicht is now merchandise mgr. for rental & store supplies, taking over for retiring 31year vet John Augsburger.

Mike Mauchaud is new to Dakeryn Industries, N. Vancouver, B.C. Mike Mitten, ex-Kitwanga Lumber, is now in sales at Gilbert Smith Forest Products, Barriere, B.C. Filip Geeraert has been named c.e.o. of Deceuninck North America, effective April 30. He succeeds Mark Parrish, who has resigned.

David Jacobson, ex-PlyGem, is now director of marketing & innovation.

James A. Baker Jr. has been named general mgr. of the Roof Coatings Manufacturers Association.

WE SAW THIS STORM COMING. AND ENGINEERED FOR IT YEARS AGO.

Cost more? No. Work better? Yes. End of story.

Wade Camp, ex-Southeastern Lumber Manufacturers Association, has joined RISI, Boston, Ma., as senior wood products economist.

Rick Ekstein, president and c.e.o., Weston Forest Products, Mississauga, Ont., has acquired all outstanding shares of the company.

His new executive team includes Steve Ekstein, now executive v.p. and v.p. of distribution; Steve Rhone, v.p. of operations; Steven Rustja, v.p. of trading, and Rob Hruby, v.p. of purchasing.

Christopher Risbrudt is retiring after 10 years as director and 35 years total with the USDA’s Forest Products Laboratory in Madison, Wi. Carl Dobler, Taiga Building Products, Burnaby, B.C., was elected president of the British Columbia Wholesale Lumber Association.

Robert M. Fujimoto, chairman of HPM Building Supply, Hilo, Hi., received the state’s Entrepreneurial Success Award from the U.S. Small Business Administration.

Noah Moore has finally retired from Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

New Campaign Promotes American Hardwood Brand

The hardwood industry is getting ready to roll out a new promotional program to develop a brand identity for American hardwoods.

The Unified Hardwood Promotion, a coalition of hardwood industry manufacturers and associations, hired New York-based ad agency Gibbs & Soell to create a program along the lines of the dairy industry’s “Got Milk” campaign.

Active in the effort are the Hardwood Federation, National Hardwood Lumber Association, Hardwood Distributors Association, Hardwood Manufacturers Association, Hardwood Council, Hardwood Plywood & Veneer Association, National Wood Flooring Association, Appalachian Hardwood Manufacturers, Penn York Lumberman’s Club, Wood Component Manufacturers Association, and American Hardwood Export Council.

“This unique effort combines the best practices of more than 20

hardwood trade associations and leading product manufacturers who have come together with the common goal of inspiring increased usage of American Hardwoods in products from cabinetry to furniture to flooring,” said UHP chairman Terry Brennan, Baillie Lumber, Hamburg, N.Y. So far, a logo—picturing a maple, an oak, and an ash leaf— and tagline—“Treasured for Generations”—have been crafted that reflect the most notable characteristics of American hardwoods, as identified in the group’s research: variety of choices, timeless beauty, and enduring value.

The next phase is recruiting more members of the industry by familiarizing them with the new brand and demonstrating how it can enhance their business.

Gibbs & Soell is currently helping develop a branded website, literature, and sales tools.

Four years of research. Two years in trial. One convincing 14-day underwater flood test. The result is a patented tapered-edge technology that enables pointSIX™ Flooring and pointSIX Durastrand Flooring to weather any storm while holding the line on edge swell.

You can’t predict the weather.

But you can choose better flooring.

www.pointsixflooring.com

MANAGEMENT Tips

By George Spilka

Pinpoint the best time to sell your business D URING 2006 AND the first half of 2007, the greatest market bubble in middle-market deal pricing in over 50 years occurred. Any middle-market executives who had plans to sell their companies within the next 20 years should have sold then. Those pricing levels will probably not be seen again in our lifetime.

During the second half of 2007 and first half of 2008, deal pricing reverted to normal levels. However, as the business downturn began in third quarter 2008, which led to the Great Recession from fourth quarter 2008 to third quarter 2009, deal pricing collapsed. In fact, 2009 was the first year the world economy contracted since the 1930s.

Fortunately, although economic and market conditions were awful, they never deteriorated to the levels realized during the Great Depression.

However, middle-market deals (those valued from $5 million to $250 million) were few. Those that were completed were usually at deeply discounted prices. This pricing level continued until the start of third quarter 2010, when deal activity and pricing started to improve.

In early 2011, deal pricing is making strides to return to normal levels and middle-market deal activity has greatly improved. However, many acquirers still believe they can “steal companies,” primarily due to the depressed earnings most companies realized during the recession. Many sellers are susceptible to accepting these discount prices, as the scars created by the recession make them concerned they won’t be able to sell their companies. However, by the latter part of 2011, middle-market deal pricing should increase above normal levels.

During 2011, as many acquirers use the depressed earnings realized by a seller during the two-year period end-

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The Merchant Magazine April 2011

ing June 30, 2010, as justification for a substandard offer, it is imperative for middle-market executives to understand that their company is a longterm asset whose sale price should not be impacted by short-term transient considerations. Furthermore, any serious acquirer does not anticipate earnings returning to 2009 and 2010 levels in the foreseeable future, or they would not be interested in buying companies.

Middle-market executives must remember that the true and most significant determinant of a transaction price is a company’s expected future EBITDA/earnings and the risk in achieving that EBITDA from the business foundation given an acquirer.

This is an acquirer’s major consideration in determining a seller’s value.

Any other factors they may cite are merely used for negotiating leverage to justify an unwarranted discount price. Consequently, do not entertain any discussions regarding your earnings during the two-year period ended June 30, 2010, being a factor in establishing a deal price. They simply are not a consideration, and you should demand they be treated accordingly.

The optimum time to sell a company should be the latter part of 2011 or 2012, due to a number of factors:

1. Most companies’ earnings began to show some strength during the second half of 2010. Earnings should continue to grow in 2011 and increase at an even higher rate during 2012.

Furthermore, 2013 should be a very good earnings year, supported by a healthy economy. These earnings levels make it possible to realize a premium price.

2. During 2011 and 2012, the capital gains tax will remain at a reduced level of 15% compared to the prior rate of 20%. It is unlikely the 15% rate Building-Products.com

will be extended beyond December 31, 2012. This 5% tax savings on the realized gain is a significant consideration when determining the timing of a sale.

3 . Cheap money, which is a byproduct of the excessive credit provided by the Federal Reserve, should contribute to strong acquisition prices during this period, while still enabling the acquirer to have a solid return on invested capital.

4. As 2011 begins, the majority of

banks are loosening the credit spigots.

By the latter part of 2011, I anticipate the availability of credit will be at normal levels.

5. Around the end of 2010, acquirers began to aggressively pursue deals.

These factors mandate that an owner interested in selling his company within the next seven years should seriously consider selling it during the latter part of 2011 or 2012.

Starting in 2014, the intermediate and long-term economic outlook gets murky. The economy could stay strong during 2014 and 2015; however, several factors give off warning signals that trouble could be on the horizon. These factors could negatively impact middle-market deal pricing and activity, possibly significantly.

Concerns include: 1. The condition of credit markets, especially in Europe, could be an intermediate to long-term financial problem.

2. Major issues are affecting the Chinese economy and banking system, including the Chinese Central Bank increasing the benchmark lending rate and reserve requirements for commercial banks, hoping to stem rising inflation. Potentially, these could have a negative impact on the Chinese economy. Since the Chinese economy is one of the most dynamic and important economies in the world, a negative impact on it will likely have global consequences.

3 . The political and economic instability in the world at this time could provide the basis to produce an event that would have wide ranging repercussions.

4 . There are many global “hot spots” that could erupt at any time.

The impact of any of these events could produce fear and tremendous instability in the financial markets.

Building-Products.com

The risk factor is too great to delay a sale until 2014 in light of all the positive reasons why a sale should take place before December 31, 2012.

To obtain a premium-priced deal with terms that fully insulate them from post-closing liability, sellers must find an investment banker/ acquisition consultant (“IB”) who has certain capabilities and characteristics.

Sellers should look for the following in their IB:

1. Realizes—and actually relishes—that a sale is not a win-win situation. In reality, it is actually much closer to a win-lose situation. Negotiations are a psychological war between disparate interests with conflicting goals. The seller wants the maximum attainable premium price, while the acquirer expects a discounted price. The better prepared, more determined party will prevail.

2. Has compassion and concern for their clients and understands most acquirers will try to steal a seller’s company. The right IB will be steadfast and resolute, concerned only with protecting and maximizing clients’ interests.

3. Has the aggressiveness, determination, toughness and force of personality, combined with the market and financial knowledge, to force their will on large corporate acquirers or sophisticated private equity firms.

4. Has the executive and business skills, transcending the financial skills that any IB should have, to fully understand each client’s company, strengths, market niche, and potential.

They must possess the ability to present and articulate these facts clearly and persuasively to an acquirer. The IB must know the company better than suitors do and understand the industry at least as well, to convince them that they can’t steal the company.

5. Has the patience and confidence to wait, if necessary, to obtain a premium-priced, all-cash deal.

Although the 18-month period ending June 30, 2007, was the most lucrative time to sell a middle-market company in over 50 years, the latter part of 2011 and 2012 should present a great opportunity to sell at a premium price.

– George Spilka contact is president of George Spilka and Associates, a national investment banking firm. Reach him at spilka@georgespilka.com.

April 2011 The Merchant Magazine

43

PIONEERING FRTW Dricon has remained unaltered since its development 30 years ago.

Dricon FRT Wood Reaches 30

Pressure treated wood, a building product with historically slow evolution, has seen major changes in recent years. But Dricon fire retardant treated wood has remained

on the market and unaltered since its introduction three decades ago.

First used commercially in 1981, Dricon wood has withstood hot attics, building code modifications, and competitive options—as well as flamespread, termites and fungal decay—for specifiers and owners of commercial and institutional buildings.

Even its developer has changed twice over the past 30 years, transforming from Koppers Co. to Hickson Corp. to Arch Wood Protection. But the product, without change in formulation, has endured. It continues to be used for roof and wall sheathing, trusses, framing, blocking, shelving, stages, fireplace surrounds, and backer panels for electrical equipment.

“Dricon FR chemical has been used longer than any other fire retardant on the market today,” noted Rodney Hardison, manager of North American development at Arch Wood Protection. “The inventors of Dricon fire retardant deserve a great deal of credit for providing the many attributes of the formulation. Dricon wood has a roof system warranty, preservative warranty, and a warranty program for trusses that was developed with the Wood Truss Council of America.”

“Looking ahead,” Hardison added, “the development of fire retardant technology remains a very important part of

C&E LUMBER COMPANY

1 1/2” to 12” Diameter in Stock.

SPECIAL QUOTES

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The Merchant Magazine April 2011

Building-Products.com

the Arch business strategy. We continue to seek new interior and exterior formulations, as well as solutions suitable for engineered wood products such as OSB and I-beams.

In 2011, Arch will launch a fire retardant coating to protect utility poles from fire damage and will reintroduce a popular brand from the past.â&#x20AC;?

Japan Expects to Increase Wood Imports When Rebuilding Begins

Japanese imports of logs, lumber and plywood in 2011 are likely to be the highest they have been since 2008 due to post-earthquake and tsunami rebuilding, reports the Wood Resources Internationalâ&#x20AC;&#x2122;s Wood Resource Quarterly.

The disaster that hit Japan on March 11 is first and foremost a humanitarian tragedy that is difficult to comprehend. Over 10,000 people died during and in the immediate aftermath. More than 400,000 people lost their homes and 100,000 to 150,000 buildings were destroyed. The rebuilding of towns, roads, railways and the power grid in the impacted region northeast of Tokyo will be a lengthy and difficult undertaking.

Much is still uncertain regarding short-term and longterm changes in the importation of forest products as a result of the catastrophe, but the need for construction material is going to be considerable in the coming years.

Initially, there have been requests from Japanese authorities and trading houses for pre-fabricated houses. There have also been inquiries for glue-laminated products and other pre-cut wood products that more quickly can be used for rebuilding efforts, as opposed to need for basic com-

Building-Products.com

modities such as lumber and plywood. To start with, the government has asked for 30,000 temporary houses within two months.

Japan is one of the largest importers of wood products in the world. In 2010, the country imported wood raw material (logs and chips) and processed wood products valued at more than $10 billion, which was 20% more than in 2009, according to Wood Resource Quarterly. Last year, Japan was the biggest importer of wood chips and plywood, the second largest importer of logs, and the third biggest importer of lumber in the world.

It is not likely that imports of lumber, plywood and sawlogs will increase much in the next few months before ports and access roads have been cleared and power has been restored for at least the most basic needs. Over the next six to 12 months, it can be expected that there will be a rise in demand for both lumber and plywood. This will result in increased importation of processed products and of logs to supply domestic Japanese mills.

Based on contacts already established between importers in Japan and manufacturers around the world, it is probable that there will higher shipments of softwood lumber from Canada, the U.S., Russia, Sweden and Finland later this year. The major suppliers of plywood will most likely continue to be Malaysia, Indonesia and China.

Japan imported 1.5 billion bd. ft. of softwood logs in 2009 and and more than 1.7 billion bd. ft. in 2010.

As the domestic forest industry increases production later in 2011, imports of logs predominantly from the U.S., Canada, New Zealand, and Russia can be expected to increase to their highest levels in at least three years.

April 2011 The Merchant Magazine

45

NEW Products

Connect the Rails

Available in arched and square styles, Deckorators’ Duo Connector allows users to create distinctive railing designs.

The connector installs easily into 2x4 aluminum, wood, and composite railings. Compatible stair-rail adapters are also available.

Colors include powder-coated black, white and bronze.

Brazilians Down Under

Cikel America’s Statesman collection features 100% FSC-certified Brazilian hardwood flooring.

Brazilian Hard Birch and Brazilian Cherry Light are offered in five different colors.

Each 3-1/4” wide plank has micro-beveled edges on four sides, with tongue-and-groove construction.

CIKEL.COM

(800) 971-7896

DECKORATORS.COM (800) 332-5724

Cushy Gloves

Synthetic-leather work gloves from Wells Lamont have a hidden liquid membrane to prevent blisters.

Sized for women, the gloves also have reinforced tips and a comfort closure that keeps out debris and offers an adjustable fit.

Available colors are mint green and periwinkle blue.

WELLSLAMONT.COM (800) 323-2830

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The Merchant Magazine April 2011

Windows that Glide

A glider window with clean lines and recessed hardware is new from Marvin Windows & Doors.

Updates to the Clad Ultimate Glider include onehand operation, low handle placement for ease of use, several operating configurations, and a sash-removal system for easy operations.

Design options include seven wood species and 19 exterior cladding colors.

MARVIN.COM (888) 537-7828

Building-Products.com

WHAT YOU WANT. WHEN YOU NEED IT. Dimension Lumber Treated Products Domestic

Timbers Green & K.D. Export

Fit to Trim

Fulcrum Composites offers pre-shaped trim for easy finishing of curves and corners.

The laminated wood trim can be installed with adhesive. Choices include 4” internal radius corner, 8” external radius corner, and 180° wrap-around corner to finish the end of stud walls.

FULCRUMCOMPOSITES.COM (989) 636-1025

Cutting Edge Saw

Irwin’s universal handsaw reportedly cuts three times faster than traditional handsaws.

The secret is the positioning of the handle in relation to the cutting edge, plus a comfort grip constructed of lightweight, high-density resin. It’s available with either a 15” or 20” blade.

IRWIN.COM

(800) 464-7946

Siding with the Look of Brick

Nichiha’s Plymouth fiber-cement siding mimics the visual appeal of brick.

The pre-finished panels measure 18” high, 72” wide, and 5/8” thick.

NICHIHA.COM (866) 424-4421

Building-Products.com

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 April 2011 The Merchant Magazine

47

Lasting Grout

SpectraLOCK PRO Grout from Laticrete now features enhanced StainProof protection for lasting beauty.

The product can be used both interior and exterior applications, including permanent wet areas such as swimming pools and fountains.

Available in 40 colors, it can also be used in re-grouting and never needs sealing.

Masterful LVL

Master-Q LVL from Finnforest USA can be used as beams, panels, and structural components that are attractive with just minimal finishing, while carrying large loads at long spans.

Lengths range from 8” minimum to 48’ maximum, up to 8’ wide, with thicknesses from 3/4” to 2-3/4” in 1/4” intervals.

LATICRETE.COM

FINNFORESTUS.COM

(800) 243-4788

(800) 622-5850

Wholesale Industrial Lumber

REEL

LUMBER SERVICE

1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806 Fax 714-630-3190 (714) 632-1988 • (800) 675-REEL 3518 Chicago Ave., Riverside, Ca. 92507

(951) 781-0564

www.reellumber.com 48

The Merchant Magazine April 2011

R-T-A Gate Swings

AZEK now offers 36” and 42” high gates that are easy to assemble for a custom look.

The kits work with 6’ or 8’ sections of Premier or Trademark PVC railings, in either single- or double-gate configurations. A special hinge allows for leveling and aligning with existing rails.

AZEK.COM

(877) 275-2935

A

t Reel Lumber Service, we supply domestic and foreign hardwoods.

Our products and services include: • Hardwood Lumber & Pine • Hardwood Plywood & Veneers • Melamine Plywood • Hardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech) • Milling (moulding profiles, S2S, SLR1E, SLR2E, & resawn lumber) • Woodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc.)

• Woodworking Supplies (deft finishes, color putty, adhesives, etc.)

O

ur products are widely used in interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of complementary products to complete virtually any woodworking or millwork project.

Building-Products.com

Extreme Vinyl Siding

Variform’s Vortex Extreme vinyl siding is designed to withstand winds up to 225 mph.

The siding delivers the look of natural split cedar combined with ultra-low maintenance, in double 5”, double 4”, and double 4.5” Dutch lap profiles.

It comes in 12’ and 16’8” lengths to minimize seams, in 19 colors and three styles.

VARIFORM.COM (800) 800-2244

Molded Interior Door

The Conmore molded, flatpaneled interior door is the latest addition to CMI’s CraftMaster line.

Available in 6’8” and 7’ passage and bifold sizes, the solidcore door has five horizontal panels and can be specified with fingerjoint or MDF stiles and rails.

Made with low-VOC primers and adhesives, the doors have no added urea formaldehyde and contain a minimum of 70% preconsumer recycled wood content.

CMICOMPANY.COM (800) 405-2233

Building-Products.com

April 2011 The Merchant Magazine

49

WWPA MEETING Photos by The Merchant Magazine

WESTERN WOOD PRODUCTS Association held its annual meeting March 14 at Embassy Suites Hotel, Portland, Or. [1] Chuck Roady, Pete Madison. [2] Darrel Hanson, Cyndee Johnson, Rick Fortunaso. [3] Rich Geary, Janet Corbett. [4] Craig Larsen, John Schick. [5] Shawn Church, Steve Schmitt. [6] Robert Banchero, Steve Randles. [7] Bob Shepherd, Rock Belden. [8] Jon Anderson, Tim Cornwell. [9] Michael Cook, Rick Northrup. [10] Steve Zika, Mike Phillips, Tim & Teresa Hart. [11] Joe Patton, Frank Stewart. [12] Scott Stormoen, Bob Lewis, Bruce

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The Merchant Magazine April 2011

Daucsavage. [13] Frank Pearson, Dave Dickman, Pete Malliris. [14] Craig McFarlane. [15] Sheldon Howell. [16] Chuck Balsano, Bob Mai, Scott Elston. [17] Ron Holen, Matthew Goughnour. [18] Adrienne & Kevin Binam, Bill Kostich. [19] Jett Romo, Robert Doerfler, Courtney Atwood, Jamie Trenter. [20] Wade Mosby, Kevin Paldino. [21] Russell Taylor, Kelly McCloskey.

(More photos on next page) Building-Products.com

WWPA MEETING Photos by The Merchant Magazine

MORE WWPA attendees (continued from previous page): [1] Gary Zauner, Ray Barbee, Marlee Berg, Bob Berg, Ken Tennefoss. [2] John Wilford, Jim Vandegrift. [3] Art & Shauna Andrews. [4] Kip Burns, Steve Brandt, Jim Moses. [5] Rick Northrup, Erol Deren. [6] Allan Trinkwald, Steve Swanson. [7] Hal Fay, Gary Pittman. [8] Justin Chappell, Tricia Kilrain. [9] Duane & Debbie Vaagen.

Building-Products.com

April 2011 The Merchant Magazine

51

LACN 2ND GROWTH Photos by The Merchant Magazine

LUMBER ASSOCIATION of California & Nevadaâ&#x20AC;&#x2122;s 2nd Growth group held its March meeting at Knottâ&#x20AC;&#x2122;s Berry Farm Resort Hotel, Buena Park, Ca. [1] Jean Henning, Chris Freeman. [2] Chris Huntington, Terry Rasmussen. [3] Tianna Cash, Sean Cummings.

[4] Bret Marchael, Endy Florez. [5] Bill Ferguson, Janeece Lowder, Dan Sweeney.

[6] Grant Pearsall, Pete Meichtry. [7] Mark Huff, Troy Huff. [8] Joe Allotta, Bill Young, Sal Camarda. [9] Danny Caccavale, John Neel. [10] Jerry Parks, Mike Croxton, Miguel Gutierrez. [11] Jim Nicodemus, Michelle Chase, Frank Bader. [12] Mike Caputo, Skyler Green. [13] Ryan Mitchell, Shane Russell. [14] Dan Croker, Barry Schneider. [15] Johnny Pringle. [16] Danny Sosa, Richard Coale. [17] Alejando Villanueva, Larry Christensen. [18] Scott Whitman, Tom Angel, Shannon Mott, Pete Ganahl. [19] Rex Klopfer, Chris Johnson, J.C. Lopez, Matt Satterlee. [20] Alan Oakes, Natalie Allen.

52

The Merchant Magazine April 2011

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 949-852-0231 or email to kdebats@building-products.com.

The

MERCHANT (a free service)

Magazine

ASSOCIATION Update

Lumber Association of California & Nevada is hosting its annual associates/dealers golf tournament June 2 at Rancho Solano Golf Course, Fairfield, Ca. LACN’s 2nd Growth under-40 group has a meeting planned for May 5 at Pacific Palms Hotel & Conference Center, City of Industry, Ca. Presenter Scott Hunter will tackle the question, “Yes, We All Have to Work Together, But Does It Have to Be So Painful?”

The group’s annual mill tour will be held May 15-17. It starts with dinner at Smokey Ridge Redwood Grove, Santa Rosa, Ca., courtesy of Redwood Empire. The tour gets underway early the next morning, departing the Hilton Garden InnSonoma County Airport for redwood and Douglas fir timberlands near Fort

Bragg, owned by Hawthorne Timber Co. and managed by Campbell Timberland Management.

Tours the next day include Redwood Empire’s sawmill in Cloverdale and its remanufacturing facility in Asti, Ca. 2nd Growth’s annual summer conference is July 21-23 at Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca. North American Wholesale Lumber Association is combining its annual conference with its Northwest regional meeting May 4-6 at The Benson Hotel, Portland, Or. Mountain States Lumber & Building Materials Dealers Association continues its webinar series, highlighting first aid training April 22

and OSHA inspection procedures May 11 and 20.

Western Wood Preservers Institute will hold its summer meeting June 26-29 at the Inn & Spa at Loretto, Santa Fe, N.M.

Los Angeles Hardwood Lumberman’s Club’s next events are its annual day at the races April 23 at Santa Anita Racetrack, Arcadia; ladies night May 12 at Orange County Mining Company, Orange, and election night June 9 at Moreno’s Mexican Restaurant, Orange, Ca. Southern California Hoo-Hoo Club tees off its 4th annual Don Gregson Memorial golf tournament May 20 at San Dimas Golf Course, San Dimas. Proceeds benefit the Wounded Warrior Project, City of Hope, and the Pacific Northwest Teacher Forestry Tour.

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 Gene Pietila

Sales for Coast Wood Preserving

Superior Service, Products & Support 100% of the Time

Distributed By

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

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

April 2011 The Merchant Magazine

53

IN Memoriam

Charles “Charlie” Schweitzer, 62, longtime West Coast lumber salesman, died March 9 in Redding, Ca. After graduating from Napa High School, he earned a BA degree from Sacramento State University. He worked in the industry for more than 40 years, first with Georgia-Pacific and Louisiana-Pacific and the last 26 years with Sierra Pacific Industries, Redding.

Donna P. Woolley, 85, former owner of Woolley Logging Co. and Smith River Lumber Co., Drain, Or., died Feb. 25 of heart failure.

She began her lumber career as a secretary and bookkeeper, and joined Woolley Logging in 1944. In 1952, she married owner Harold Woolley.

When he died in 1970, Mrs. Woolley became c.e.o. of the company and became the first female member of the American Plywood Association.

Ten years later, she began to diversity from the company’s base in timber into commercial real estate and

hospitality. At the time of her death, she was president and c.e.o. of Eagle’s View Management Co. and Woolley Enterprises Inc., Drain.

She served on the boards of the Associated Industries of Oregon, World Forestry Center, Oregon Forest Industries, and the Advisory Board of the Bureau of Land Management, Roseburg District.

David Dailey, 82, owner of Hilltop Supply, Guatay, Ca., died of congestive heart failure Feb. 24 in San Diego, Ca. He graduated from San Diego High School in 1947 and served with the U.S. Army in Korea. After discharge, he worked for his father at the family’s grocery store, which later became a hardware store.

In 1977, he bought Hilltop Supply and expanded its inventory beyond mostly lumber.

Glenn Junior Lorenz, 81, retired western lumberman, died Feb. 22 in Klamath Falls, Or.

WOOD SOLUTIONS FAIR

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The Merchant Magazine April 2011

Photos by The Merchant

WOOD SOLUTIONS FAIR arrived March 2 at the Long Beach Convention Center, Long Beach, Ca. Among the vendors: [1] Frank Stewart, Rich Geary. [2] Jeff Morrison, Geoff Crandlemire. [3] Paul Mackie. [4] Bill Reavely. [5] Don Bratcher, Huck DeVenzio. [6] Chris McDonnough, Alan Hanson, Joe Polder. [7] Jason

Schulze. [8] Bob Mion, Don Danka. [9] Chris Wischmann. [10] Tom Angel, Shannon Mott.

Building-Products.com

Growing up, he worked in the family’s hardware store in Klamath Falls.

After graduation from the University of Oregon, Eugene, he served in the U.S. Coast Guard. When he was discharged in 1953, he and his parents moved to Lewiston, Id., where they owned and operated a lumber company. In 1956, he opened Lorenz Lumber with his father and brother.

Fifteen years later, the company was purchased by Fibreboard, which eventually merged with LouisianaPacific Corp. Mr. Lorenz continued with both companies, retiring as manager of LP’s Sierra Division.

Sanford C. Sigoloff, 80, former Builders Emporium chief, died of Alzheimer’s disease Feb. 19 in Los Angeles, Ca., A 1951 graduate of UCLA, he served in leadership positions at Xerox and other companies, becoming known as a top restructuring professional. In 1985, he brought Wickes out of three years of Chapter 11 bankruptcy by transforming it from a retailer into a diversified consumer and industrial products company.

His TV commercials for Wickes’ Builders Emporium division, which included the phrase “We get the message, Mr. Sigoloff,” made him familiar to Southern Californians.

Although he was called “Mr. Chapter 11,” he was also known for helping employees find new jobs and fighting with creditors to increase their severance packages.

Corps during the Korean War, he purchased the hardware store from his stepfather in 1971. He sold it and retired in 2003.

Eugene W. “Gene” Barrett, 81, former owner of Ireland’s True Value, Hillsboro, Or., died Feb. 3 in Portland, Or., following a two-year battle with Lou Gehrig’s disease.

A USC graduate and U.S. Army veteran of the Korean War, he moved to Oregon in 1975 and bought the hardware store.

Donald A. “Don” Jaenicke, 81, forest products publicity agent, died March 2 in Tacoma, Wa. After serving as a press officer for the U.S. Navy in Japan, he joined the Douglas Fir Plywood Association (now APA), Tacoma, in 1956 as a publicity writer. He became a public affairs/marketing specialist for

Weyerhaeuser Co. in 1965, and in 1974 was named senior v.p. and new business director at Cole & Weber Advertising.

He started his own firm, Jaenicke Marketing Works, in 1989. He served as an advertising/public relations consultant to the Southern Pine Council from 1984 until semi-retiring in 1998, but continued representing several clients, including the American Institute of Timber Construction. He was a frequent contributor to The Merchant Magazine.

Richard Byron Arneson, 91, retired office manager for Preston Mill Co., Preston, Wa., died Feb. 24.

After serving in the Army Finance Corps during World War II, he owned and operated a retail lumberyard in Arlington, S.D., with his father. In 1956, he moved to Washington and spent 20 years with Preston Mill.

Charles Ernest “Chuck” Boutillette, 52, retired Colorado lumberman, died of cancer March 15 in Colorado Springs, Co. He spent 13 years at Brookhart’s Building Center, Colorado Springs, followed by stints at Stock Buiding Supply, Alamosa, Co., and Alamosa Lumber, Alamosa, until 2008.

Tom McClelland, 57, owner of Downtown Ace Hardware, Fort Collins, Co., died March 8 in Fort Collins.

He graduated from the University of Wyoming in 1975 and opened his first hardware store in Montrose, Co. In 1990, he opened Downtown Ace.

Eugene “Gene” Borek, 79, former owner of Walt’s Ace Hardware, Phoenix, Az., died March 14 in Phoenix.

A veteran of the U.S. Marine Building-Products.com

April 2011 The Merchant Magazine

55

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Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month.

HELP WANTED

EXPERIENCED LUMBER & MILLWORK Salesperson Wanted: Southern California hardwood lumber company with on-site custom milling facility is looking for a person with established relationships who is ready to sell.

Minimum 5 years experience in hardwood lumber & millwork distribution. Generous commission-based compensation. Contact Box 718, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660, Fax 949-8520231, or dkoenig@building-products.com.

PLYWOOD TRADER: Well established Southern California-based plywood importer looking for a motivated trader to develop a new territory selling wholesale distributors throughout the western states. Prior knowledge of panel products and customer base a must. Great opportunity! Salary plus commission. Email resume to gsimon@redpointforestproducts.com.

WATERBASED WOOD STAIN manufacturer looking for marketing consultant to help us create a marketing plan. Experience in lumber industry and paint & coatings industry preferred.

Please send resume to peg@ecochemical.com.

Website: www.ecochemical.com.

BROKER/TRADER OPPORTUNITY: Mill Direct Lumber Sales, Inc. is seeking “A” players to join their highly successful lumber trading team in Lake Oswego, Or. Financially strong, we offer an environment unmatched by others that breeds financial & personal growth.

Human-resources@MillDirectLumber.com or (866) 261-5563.

HELP WANTED

FOR SALE

NORTHERN & SOUTHERN CALIFORNIA SALESPEOPLE WANTED Redwood Empire is looking for experienced salespeople in wholesale and industrial with backgrounds in commodities, redwood, cedar, plywood, steel, pressure treated, hardwood decking, flooring, and imported lumber (softwoods and hardwoods). Positions available in Northern and Southern California.

Please send resume to Sean Burch, sburch@redwoodemp.com. www.redwoodemp.com

FACILITIES FOR LEASE

OFFICE & WAREHOUSE FOR LEASE: Northern California Sacramento region.

Approximately 2,000-sq. ft. office attached to 30,000-sq. ft. warehouse. Warehouse clear span height 20 ft. Office & restrooms ADA accessible. Warehouse includes three-man doors with large 20-ft. roll-up door. 220V power available.

Fire sprinkler system throughout. Truck shop facilities provided, including minor repair work, oil changes, steam cleaning, etc., at favorable rates. Ample truck parking space in back of facility. Office & 30,000-sq. ft. front warehouse available at .29¢ per sq. ft. If interested, please call Tom Williams, (530) 7422168, between 8 a.m. and 5 p.m.

FOR SALE

immediate delivery!

CUSTOM LUMBER COVERS IDAHO PACIFIC LUMBER is an employeeowned company looking for commission-based salespeople to work either in your established market or in our Boise, Idaho, office. This is an excellent opportunity to build a career in the building materials industry. Not only can you earn a high income, but you also can earn a piece of the company. We are seeking salespeople who are highly motivated, aggressive, and great with people. The abilities to stay organized and deal with time pressure are also important. You can learn more about us at our website at www.idapac.com. For consideration, please send a cover letter and resume to kberg@idapac.com.

56

The Merchant Magazine April 2011

PALLET BAGS Roofing Shingles • Cement • Sheetrock & Plywood Pallet Bags Bags 4 x 4 x 4' • 4 x 4 x 8' • 4 x 4 x 12'

Rolls 10 x 300' Custom Printed Covers, Quoted

L.I.INDUSTRIES CALL 800-526-6465 FAX 718-793-4316 • apronaz@aol.com

www.lumbercoversprotect.com

Keep track of the West

The

MERCHANT Magazine

keeps you up to date on industry issues throughout the West.

Now find out what’s happening on the other side of the Rockies.

Keep track of the Rest

Building Products Digest covers the other 37 states, including the Midwest, Southeast and Northeast.

Subscribe for just $24 for 12 issues.

Contact Heather at (949) 852-1990 HKelly@building-products.com

Building-Products.com

DATE Book

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

Lumber Association of California & Nevada – April 14, golf tournament, Black Gold Golf Course, Yorba Linda, Ca.; (800) 2664344; www.lumberassociation.org.

Remodeling & Decorating Show – April 15-17, South Town Expo Center, Sandy, Ut.; (818) 571-9012; www.thehomeshow.com.

Mountain States Lumber & Building Material Dealers Association – March 18, bowling tournament, Bowl-ero Lanes, Lakewood, Co.; (303) 922-1125; www.mslbmda.org.

Southern California Hoo-Hoo Club – April 20, dinner & meeting, Orange County Mining Company, Orange, Ca.; (760) 324-0842; hoohoo117.org.

Los Angeles Hardwood Lumberman’s Club – April 23, day at the races, Santa Anita, Arcadia, Ca.; (626) 445-8556; www.lahlc.net.

National Kitchen & Bath Association – April 26-28, annual conference & show, Las Vegas, Nv.; (800) 843-6522; www.nkba.org.

National Wood Flooring Association – April 26-29, wood flooring expo, San Diego Convention Center, San Diego, Ca.; (800) 4224556; www.woodfloors.org.

Olympic Logging Congress – April 27-29, Vancouver, B.C.; (360) 452-9357; www.olympicloggingconference.com.

Black Bart Hoo-Hoo Club – April 30, annual poker tournament & BBQ, Calistoga Fairgrounds, Calistoga, Ca.; (707) 889-0049.

Material Handling Equipment Distributors Assn. – April 30-May 4, annual convention & showcase, JW Marriott Desert Ridge Resort & Spa, Phoenix, Az.; (847) 680-3500; www.mhedad.org.

National Association of Home Builders – May 1-3, green building conference, Salt Lake City, Ut.; (800) 368-5242; www.nahb.org.

North American Wholesale Lumber Association – May 4-6, annual meeting, Benson Hotel, Portland, Or.; (800) 527-8258; www.lumber.org.

WHOLESALE ONLY • MILL DIRECT & LCL

Lumber Association of California & Nevada – May 5, 2nd Growth meeting, Industry, Ca.; (800) 266-4344; lumberassociation.org.

WHERE QUALITY IS AGELESS

International Wood Markets Group – May 10, Global Wood Products Industry & Market Conference, Westin Bayshore Hotel, Vancouver, B.C.; (604) 801-5996; www.woodmarkets.com.

Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers

National Hardware Show – May 10-12, Convention Center, Las Vegas, Nv.; (888) 425-9377; www.nationalhardwareshow.com.

CALL SALES AT (800) 400-8383 • (951) 681-4707

North American Retail Hardware Assn. – May 10-12, convention, Bellagio Hotel, Las Vegas, Nv.; (317) 290-0338; www.nrha.org.

Rick Anfinson • Carol O’Connor

Los Angeles Hardwood Lumberman’s Club – May 12, ladies night, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Outside Sales Darin Curran

(949) 412-1894

Remodeling & Decorating Show – May 14-15, Pasadena, Ca.; (818) 557-2950; www.thehomeshow.com.

American Wood Protection Association – May 15-17, annual meeting, Fort Lauderdale, Fl.; (800) 356-1974; www.awpa.com.

Lumber Association of California & Nevada – May 15-17, Central California mill tour; (800) 266-4344; www.lumberassociation.org.

Forest Products Society –May 16-18, international conference, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Green Contractors Expo – May 17-18, Convention Center, Las Vegas, Nv.; (800) 859-9247; www.greencontractorsexpo.com.

Black Bart Hoo-Hoo Club – May 20, trap shoot & BBQ, Black Point Sports Club, Petaluma, Ca.; (707) 588-7613.

Southern California Hoo-Hoo Club – May 20, 4th annual Don Gregson Memorial golf tournament, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; www.hoohoo117.org.

Do It Best Corp. – May 21-23, spring market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Building-Products.com

Visit our website:

www.anfinson.com

Fontana, CA Office and Mill: 13041 Union Avenue, Fontana, CA 92337 Fax: (951) 681-3566 • E-mail: sales@anfinson.com

April 2011 The Merchant Magazine

57

IDEA File

Helping other businesses

Fired Up by Selling to Other Local Stores

comply with fire regulations is bringing new customers—and goodwill— to a Midwestern dealer.

Carter Lumber, Madison, Oh., discounts a variety of safety items— batteries, bulbs for emergency exit signs, fire extinguishers—for local businesses that bring in a recommendation from the fire department.

“They need to bring their inspection form,” says manager Shawn Steigner. “If we have the stuff, we take care of them.”

He decided to offer the discount after his own store was inspected, and he had to buy 36 light bulbs. “We paid eight times what we are selling them for today,” he says, so he decided to help other local businesses escape the same fate.

Businesses usually have 30 days to correct issues if they aren’t lifethreatening. “We understand the economy,” says inspector John Kloski. “We can’t expect someone to spend $4,000 or $5,000 right away.”

Steigner says he is open to stocking more merchandise. “As more things come to light, we’re willing to see if we can help.”

A win/win for NAWLA and its members

This May, the North American Wholesale Lumber Association is teaming with The Merchant to offer a unique marketing vehicle… a massive special section devoted entirely to promoting NAWLA and its members.

Advertisers receive: • Your ad message reaches all NAWLA wholesalers and their dealer customers • Discounted ad rates for NAWLA members • Support of your association • Brand your company’s identity with NAWLA’s • Rates include color and optional FREE ad design • Opportunity to advertise regionally or, by also running in sister publication BPD, nationally.

• 6 one-year subscriptions to Merchant or BPD • Advertisers in the May NAWLA Special Section save an added 10% off ads in October’s NAWLA Traders Market Preview Reserve your space by April 20, 2011 For rates, call (949) 852-1990 Chuck Casey – ccasey@building-products.com Alan Oakes – ajoakes@aol.com

58

The Merchant Magazine April 2011

ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........27

Ainsworth [www.ainsworthengineered.com] .........................40-41 Allweather Wood Treaters [www.allweatherwood.com] .............45

Anfinson Lumber [www.anfinson.com]........................................57

Arch Wood Protection [www.wolmanizedwood.com].........Cover I BW Creative Wood [www.bwcreativewood.com] ........................27 Cal Coast Wholesale Lumber ........................................................53

California Redwood Co. ...................................................................7

California Timberline [www.caltimberline.com] ............................4 C&E Lumber [www.lodgepolepine.com] ......................................44

Capital [www.capital-lumber.com]................................................13

Eco Chemical [www.ecochemical.com] .......................................32

Exterior Wood [www.exteriorwood.com] .....................................37

Fiberon LLC [www.fiberondecking.com] .....................................29 Fontana Wholesale Lumber [fontanawholesalelumber.com].....36

Hoover Treated Wood Products [www.frtw.com] .............Cover IV

Huff Lumber ....................................................................................39

Huttig Building Products [www.huttig.com] ................................44

J.H. Baxter [www.jhbaxter.com]....................................................55 Keller Lumber .................................................................................49

Krauter Solutions [www.krauter-storage.com]............................28

LP Building Products [www.lpcorp.com].......................................3 Manke Lumber [www.mankelumber.com]....................................47

Master Mark Plastics [www.rhinodeck.com]................................54

Maze Nails [www.mazenails.com].................................................24 Norman Distribution [www.normandist.com] ..............................53

Osmose [www.osmose.com] ...............................................Cover II Pacific Wood Preserving Cos. [www.pacificwood.com].............51

Quality Borate Co. [www.qualityborate.com] ..............................38

Redwood Empire [www.redwoodemp.com].................................23

Reel Lumber Service [www.reellumber.com] ..............................48

RISI [www.risiinfo.com/crows] ......................................................49 Rosboro [www.rosboro.com] ........................................................34 Roseburg Forest Products [www.rfpco.com] ..............................33 Royal Pacific Industries .................................................................17

Screw Products [www.screw-products.com] ..............................37

Simpson Strong-Tie [www.strongtie.com]...................................21 Snider Industries [www.sniderindustries.com] ...........................11

Southern California Hoo-Hoo Club [www.hoohoo117.org] ........57

Superior Wood Treating [www.superiorwoodtreating.com].......11

Swanson Group Sales [www.swansongroupinc.com]................31 Taiga Building Products ......................................................Cover III

TAMKO Building Products [www.evergrain.com] .........................5

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....35 Utah Wood Preserving Co. ............................................................25

Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net] ....36

Viance [www.treatedwood.com] .....................................................8 Western Red Cedar Lumber Association [www.wrcla.org]...42-43

Building-Products.com

The

MERCHANT

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