INSIDER’S GUIDE TO WOOD TREATERS MODIFIED WOOD RELAUNCH LSL GOES BIG
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10 MARGIN BUILDERS
NEW TECHNOLOGY ADDS PUNCH TO CA-TREATED WOOD
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WOOD TREATERS 2013
18 INDUSTRY TRENDS
LSL IN TALL BUILDINGS
18 MANAGEMENT TIPS
OUTSOURCING CREDIT
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Volume 91 Number 10
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6 TOTALLY RANDOM 20 COMPETITIVE INTELLIGENCE 22 OLSEN ON SALES 32 FAMILY BUSINESS 34 MOVERS & SHAKERS 42 IN MEMORIAM 42 ASSOCIATION UPDATE 44 NEW PRODUCTS 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE
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April 2013
Building-Products.com
TOTALLY Random By Alan Oakes
The
MERCHANT
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www.building-products.com
A publication of Cutler Publishing
4500 Campus Dr., Ste. 480, Newport Beach, CA 92660
Small business is still struggling
A
I PUBLISHED my February column (“What Is Your New Growth Strategy for 2013?”), I received calls from a number of friends and readers in the industry saying that although things were better for sure, they did not entirely share my optimism of how strong things are. I understand those comments with a few caveats. As I wrote this column, the stock market hit a new record at 14,253 compared to 14,164 on Oct. 9, 2007. Yes, it took five-and-a-half years to get back to this point and a lot of pain along the way! Of course, it is possible that by the time you read this, it may have dropped 10%. But I think, with some twists and turns, we are heading for some good times. The truth is that we caused much of the pain of the last several years by panicking in 2008. That panic caused the market to drop in three months to a low of 6,547. For those who panicked and sold off everything, the toll has been heavy. For those of us who didn’t, the cost has been a lot more bearable. More importantly, among those who got out, many stayed out and now find it difficult to get back in. Unfortunately, come the next down market, many who got back in will sell off all over again. Panic causes everything around us to crumble. But the sun is rising again. On our side of the economy, the facts are clear. Our industry driver—housing starts—was nicely up in 2012 vs. 2011. In 2013, starts (single and multifamily) are expected to be 960,000 compared to 780,000 in 2012—a 23% increase. So the question is, who is getting the business and, if you are not seeing it, why not? Some of the industry heavyweights are enjoying great results right now, but I think the turnaround is more slowly impacting the smaller of us. While the big corporations are starting to rake in high profits (and why not?), many small companies are still not enjoying the same success. Better results are on the way, as the housing market comes to life with home prices rising, the number of underwater homes is falling, and foreclosures are down. Yet, many small companies continue painting a picture of stagnant sales. Might uncertainty be the key factor preventing them from participating in this turnaround? So I stand by my February column: what is your growth plan? Small business typically leads the way out of recession, but that is certainly not what has happened with this economy. And I can see why! Most small companies do not have the reserves and financial cushion that larger companies have had through the recession, so making a decision to start investing again and employing more people is a VERY tough decision. In the U.S. since February 2010, at companies with 1,000 or more workers, the number of employees has grown by more than 8%, according to ADP. But for firms of less than 20, the same number is 3.4%. No doubt all of us small business owners have had anxiety of how the new medical plans will impact us in 2014. The payroll tax increase in January did not help matters, and the sequestration brought us hiccups and a wait-and-see attitude. Government threats for even higher taxes continue to make us reluctant to invest. But as the confidence index starts to increase, we have to have a plan to grow again, lest our businesses further decline as we get beat out by the big boys. They are not standing still. In our industry, we need to start seeing some of the shuttered mills being reopened, shifts being added, trucks getting back on the road, and people heading back into the field. We need to see new product innovation. We need to see investments in training and marketing (naturally). Granted, small business is finding credit tight as banks large and small, who are with us in good and bad times (yes, I jest), are still missing in action. However, the reality is that although for most of us time has stood still for the last five years, it is now time to wake up or be left behind. Good selling! FTER
Alan Oakes, Publisher ajoakes@aol.com
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The Merchant Magazine
April 2013
Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Dwight Curran James Olsen Jay Tompt Carla Waldemar Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com
How to Advertise
Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com
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SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.
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Building-Products.com
FEATURE Story Modified Wood
Second life for modified wood
NEW PRODUCTS such as Thermory decking are bringing renewed attention to thermally treated wood.
A
ago, modified wood arrived in the U.S., touted as the Next Big Thing in decking. In the interim, several high-profile brands, like PureWood and Radiance, have disappeared, and the category as a whole has yet to make a dent in the overall decking market. But now, thanks to a crop of new products, brands and distribution deals, modified wood appears ready for a second stab at success. The category currently consists of two similar yet distinct processes. The first, thermal modification, basically cooks the wood in 400-plus-degree heat and steam to remove organic compounds from the wood cells, so it will not absorb water, expand, contract, or provide nourishment for insects or fungi. The second process, acetylation, achieves similar benefits through heat, pressure and introduction of a vinegarbased acid to transform the wood’s cells. Although acetylation has been around for decades and thermal modification has been popular in Europe since the early 1990s, both have yet to enjoy widespread use in the states. Northern Crossarm, Chippewa Falls, Wi., and sister company Rocky Mountain Bluwood, Denver, Co., were early adopters of Radiance brand thermally modified wood, but are currently liquidating their inventories of the product. “We have only a small quantity left, and then the line will be gone,” said president Pat Bischel. “We still like the BOUT FIVE YEARS
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The Merchant Magazine
April 2013
concept of thermal modification, but don’t intend to continue with the product.” He says thermally modified products are having a tough time cracking the crowded decking market due to limited marketing budgets. “There are so darned many competitive products,” Bischel said. “People have so many choices. Dealers will put the sample on the counter alongside the other 53 deck samples and leave it up to the consumer. And it’s difficult to get their attention, unless you’re a Trex, who’s in every magazine everywhere. There’s just not the promotion for (thermally modified wood).” Bischel, however, is convinced there is a place in the market for modified wood. “I got an email yesterday looking for some,” he said. “They installed a job three or four years ago. Hurricane Sandy wiped out the area, but the project still looked gorgeous. He wanted some more.” He doesn’t see the price tag—notably higher than pressure treated lumber—as a barrier, since it’s “comparable to an inexpensive composite.” Over the last five years, Lake States Lumber, Aitkin, Mn., has seen competitors to its Evolutions thermally modified wood come and go. “Other companies have made mistakes in the species they used, mostly using yellow pine,” said manager Jerry Lipovetz. “We’re using a different type of wood, with a different knot structure. When you cook wood, it’s important which species you use and how you mill it.” Kustom Kilns, Terre Haute, In., spent five years manufacturing thermally modified wood products for several different private label resellers before launching its own brand, DuraHolz, in January 2012. The products are currently sold throughout North America, with plans to expand distribution into parts of Asia, Australia and Europe by the end of the year. Kustom Kilns is capable of processing a large variety of wood species for a range of applications, but currently is focusing on decking, framing and fencing products made from Select Structural grade southern yellow pine. For the future, said sales manager Kersten Russell, the company is eyeing the commercial roofing industry and “is currently working on a laminated product that will provide the durability of our hardwood products and the structural strength of our softwood products all at a extremely competitive price.” At the same time Kustom Kilns introduced DuraHolz, Building-Products.com
Eastman Chemical launched its own brand of acetylated southern pine decking, Perennial Wood. It has since expanded to porch flooring, deck posts, and solid (non-grooved) deck boards. Products are currently distributed in the Northeast by Boston Cedar and in the South Atlantic by Snavely Forest Products. Royal Plywood, Cerritos, Ca., began distributing an established acetylated product—Accoya—as the commercial/industrial specialist’s first step into the outdoor wood market. Thermally modified wood also caught v.p. Cliff Duernberger’s eye, but he was skeptical. “I’d had it introduced to me five, six, seven years ago and samples sent,” he recalled. “It was all so dark. The white oak looked like a different species. The poplar looked like maple. It was all random width lumber. Where would you use it? I never saw anywhere it fit.” Then, last summer, he was paid a visit but Thermory USA, which was looking for distributors for its new thermally modified wood. “They really figured out the process,” said Duernberger. “The decking is beautiful; they have 1x6, 5/4x6, grooved and non-grooved. It’s a lot easier than working with ipé, and the price is about the same.”
Royal Plywood now distributes Accoya and Thermory throughout Southern California and the Southwest. Customers choose between the two based on the look and the application. “Accoya is radiata pine from New Zealand, treated in the Netherlands, and it’s a pine-looking product,” Duernberger explained. “Thermory is North American ash, treated in Estonia, and it looks like chocolatecolored ash. It comes to us with a smoky, campfire-wood odor that dissipates over time. Accoya would be fine for a residential deck, but for a large commercial project, like a restaurant, the hardwood is better suited to moving around tables and chairs, high heels, and the heavier foot traffic.” Mount Storm Forest Products, Windsor, Ca., distributes Thermory in Northern California. Shelter Products, New Ulm, Mn., recently began distributing EcoDeck thermally modified decking in Minnesota, Iowa, Wisconsin and the Dakotas. “All of our market research has shown there are great opportunities for a product like this,” said v.p. Aaron Lambrecht. “There is a segment of the market looking to use real wood, but with a significantly reduced environmental impact. There are also specialty applications where raw and
chemical treated lumber cannot be used. Ultimately, wood still remains the predominate product in the decking and railing category, even after the gains composite decking and railing has made in recent years.”
Thermally Modified Wood Allwood www.naturalwooddecking.com Cambia www.cambiawood.com DuraHolz www.duraholz.com EcoPrem/EcoDeck www.ecovantagewood.com Evolutions www.lake-states-lumber.com Thermory www.thermoryusa.com
Acetylated Wood Accoya www.accoya.com Perennial Wood www.perennialwood.com
ACETYLATED decking like Perennial Wood provides similar performance benefits as thermally modified products, without darkening the original wood. Building-Products.com
April 2013
The Merchant Magazine
9
MARGIN Builders Pressure Treated Wood
Baramine technology adds punch to copper azole-treated wood
L
ONZA WOOD Protection has developed a new wood preservative additive to step up protection against common fungi as well as against certain aggressive fungi that can tolerate copper preservative systems. According to Tom Kyzer, vice president of consumer sales, “Lonza
Wood Protection, its licensed producers, and their distributors are dedicated to continually improving preserved wood products through forward-thinking innovation. We are now introducing the most advanced copper azole technology ever, Wolmanized wood with BARamine additive. It’s the next
level in protection, and a new force in preserved wood.” The BARamine additive is being incorporated into the treatment of Wolmanized Outdoor wood, the production of which is licensed by Lonza. Kyzer noted, “Copper azole preser(Please turn to page 12)
FRONTING bundles of Wolmanized Outdoor wood with BARamine additive are (left) Steve Cheatham, sales manager, and Jay Hudson, president, of Everwood Treatment, Spanish Fort, Al., a pioneer in the introduction of the new preservative combination.
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The Merchant Magazine
April 2013
Building-Products.com
Hixson Lumber Sales (Pine Bluff, Magnolia, Plumerville, Ar.; Caddo Mills, Gilmer, Willis, Tx.; Hattiesburg, Ms.; Winnfield, La.; Hillsboro, Streator, Il.) hixsonlumbersales.com
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Hoover Treated Wood Products (Thomson, Ga.; Pine Bluff, Ar.; Detroit, Mi.; Winston, Or.; Milford, Va.) www.frtw.com
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Universal Forest Products (Union City, Ga.; Saginaw, Huntsville, Schertz, Tx.; Auburndale, Medley [Aljoma Lumber], Fl.; Elizabeth City, N.C.; Ranson, W.V.; Salisbury, N.C.; Windsor, Co.; Belchertown, Ma.; Blanchester, Oh.; Gordon, Pa.; Granger, In.; Janesville, Wi.; Lansing, Mi.; Stockertown, Pa.; Harrisonville, Mo.) www.ufpi.com
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Babb Lumber (Ringgold, Ga.; Vincennes, In.) www.babb.com
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Burt Lumber Co. (Washington, Ga.) www.burtlumbercompany.com
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Canfor Southern Pine (Camden, Conway, S.C.) www.canfor.com
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Southeast
D&D Wood Preserving (Albany, Ga.)
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Dantzler (Jacksonville, Fl.) www.dantzler1865.com
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Deforest Wood Preservers (Bolton, Ms.)
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Other*
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Water Repellent
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FRT
√
CCA
Great Southern Wood (Abbeville, Mobile, Muscle Shoals, Al.; Mansura, La.; Brookhaven, Ms.; Bushnell, Fl.; Conyers, Jesup, Ga.; Rocky Mount, Va.; Hagerstown, Md.; Fombell, Pa.; Columbus, Mount Pleasant, Tx.; Buckner, Mo.; Glenwood, Ar.) www.greatsouthernwood.com
National (serving three or more regions)
Carbon-Based
√
List does not include treaters using only non-residential preservatives
Borates
√
Pressure Treaters (Plant Locations)
(MCA • MCQ • μCA-C)
Copper Suspended
Georgia-Pacific (Louisville, Ky.; Middleburg, N.C.; Mineola, Tx.; Nauvoo, Al.: Rock Hill, S.C.; Rockledge, Fl.; Brunswick, Ga.; Athens, Al.; Pleasant Hill, Mo.; Richmond, In.; Rochelle, Il.) www.gp.com
Pressure Treaters
(ACQ • CA)
Copper Solution
2013
Wood Preservatives
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EL2
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√
√
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√
√
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√
Cu8 CuNap
EL2
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√
Escue Wood Preserving (Millwood, Ky.) www.escuewoodpreserving.com
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√
Everwood Treatment (Spanish Fort, Al.) www.everwoodtreatment.com
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√ BAR
PTI
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Follen Wood Preserving (Jackson, Ms.) www.follen.com
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Free State Lumber (Haleyville, Al.) Hallman Wood Products (Eatonton, Ga.) www.hallmanwood.com
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Huntsville Wood Products (Huntsville, Al.) www.landllumber.com
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King Treatment (Oneida, Tn.)
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√ √
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Littrell Bros. Lumber (Vinemont, Al.)
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Lumber One Wood Preserving (Sheffield, Al.) www.lumberoneco.com
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* Abbreviated preservatives include Chemonite (ACZA), Copper Azole with Baramine (BAR), Copper 8 Quinolinolate (Cu8), Copper Naphthenate (CuNap), Creosote (Creo), Creosote/Petroleum (50/50), EcoLife (EL2), Fire Retardant Treatment (FRT), Pentachlorophenol (Penta), PermaTrib (PTrib), Tribucide II (Trib), and Wolman AG (PTI).
Building-Products.com
April 2013
The Merchant Magazine
11
Baramine Technology Adds Punch (Continued from page 10)
vative was developed in England. We introduced it to North America a decade ago. Since then it has moved from a fringe preservative to this country’s most popular choice. However, our scientists noticed that certain previously
COPPER AZOLE-treated wood is now available with BARamine additive to guard against fungi that previously resisted copper preservatives.
ignored fungi could cause damage to wood treated with copper preservatives.” The standards of the American Wood Protection Association and criteria of ICC Evaluation Services require testing against damage from common fungi. Neither includes fungi in the genus Antrodia or Serpula, which are less prevalent but capable of resisting control by copperbased preservatives. With climate changes forecast, these fungi could become more prevalent. “Research was undertaken to find a solution that would prevent damage from these rogue fungi without affecting current production practices or adding unacceptable cost,” said Kyzer. “Plus, we wanted it to work with both micronized and dissolved copper. The solution is BARamine. The technology adds defense that surpasses the performance of copper azole preservative alone.” Kyzer says that BARamine, for which a worldwide patent is pending, also increases the protection against more common forms of fungi and results in a fresher wood appearance due to its improved mold protection and greater solution stability. “We expect that the additive will mean happier customers for lumber dealers and contractors. We are pleased that Wolmanized Outdoor wood will be the first brand to have this protection.” A pioneer in the commercialization of BARamine additive was Everwood Treatment, Spanish Fort, Al. They first used it in late 2012. “We were willing to be a trial plant because we wanted to be ahead of the curve,” said Everwood president Jay Hudson. “I would not be surprised if, in the near future, many treating plants provide treatments with BARamine, or something like it. “Fungi, like other forms of life, will adapt to their condi-
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April 2013
Building-Products.com
Top Treaters
(Largest Residential Wood Treaters, by Number of Treating Locations)
1 2 3 4 5 6 7 8 9
Universal Forest Products (18 plants) Great Southern Wood (15) Georgia-Pacific (11) Cox Industries (10) Hixson Lumber Sales Spartanburg Forest Products (9) Allweather Wood (6) Bestway Enterprises (5) Culpeper Wood Preservers Hoover Treated Wood Products Robbins Wood Preserving Coastal Treated Products (4) McFarland Cascade Pacific Wood Preserving Biewer Lumber (3) Conrad Forest Products Fortress Wood Products
10 Babb Lumber (2)
Canfor Southern Pine Fontana/Coast Wood Preserving J.H. Baxter
Building-Products.com
Outdoor Living Products (Orlando, Fl.) www.outdoorlivingproducts.net
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Peach State Mfg. (College Park, Ga.) peachstatewoodproducts.com
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Phillips Building Supply (Gulfport, Ms.) phillipsbuildingsupply.com
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Pollard Lumber (Appling, Ga.)
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Creo Penta
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Robbins Wood Preserving (Orlando, Tampa, Fl.; Gainesville, Thomaston, Ga.; Rockwell, N.C.) www.robbinslumber.com
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Savannah Wood Preserving Co. (Savannah, Ga.) savwood.com
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Scotch Gulf Lumber (Mobile, Al.) www.gulflumber.com
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Southern Lumber & Treating (Jacksonville, Fl.) www.southern-lumber.com
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S.I. Storey Lumber (Armuchee, Ga.) sistoreylumber.com
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Sunbelt Forest Products (Bartow, Fl.) www.sunbeltfp.com
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Tri-State Lumber (Fulton, Ms.) www.homanindustries.com
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United Treating & Distribution (Muscle Shoals, Al.) www.unitedtreating.com
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Valley Lumber Co. (Hackleburg, Al.) www.valleylumbercompany.com
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Varn Wood Products (Hoboken, Ga.)
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South Central
Anthony Wood Treating (Arkadelphia, Ar.) www.anthonywoodtreating.com
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Commercial Wood Treating (N. Little Rock, Ar.)
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EL2
Thomas Wood Preserving (Grenada, Ms.)
April 2013
Other*
Water Repellent
FRT
CCA
(EL2 • PTI)
Carbon-Based
Wood Preservatives
Borates
(MCA • MCQ • μCA-C)
Pressure Treaters (Plant Locations)
(ACQ • CA)
2013
Copper Suspended
Pressure Treaters
Copper Solution
tions. To control decay, preservatives must stay in front of the adapting fungi. The data show that this new combination does that.” Hudson explained that the addition of BARamine does not change the natural color of copper azole-treated wood, nor does it make the wood more corrosive. “It adds some moldicide value, which is welcome, and helps our finished product look cleaner and brighter. Our customers have been happy to get the latest in preservative technology.” The additive is the latest in a series of improvements to the original copper azole formulation since its invention by Lonza in England in the 1990s. A variation called Type B was the first advancement, followed by Type C with two azoles, and then micronized copper azole. With each step, its developers say the preservative has been enhanced in substantial ways. The first Wolmanized Outdoor wood with BARamine can now be obtained from some treating companies, with others expected to have it available in upcoming months.
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The Merchant Magazine
13
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Mid-States Wood Preservers (Simsboro, La.)
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South Houston Lumber Co. (S. Houston, Tx.) southhoustonlumber.com
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Wood Protection (Houston (Tx.) www.osmosewood.com
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C.M. Tucker Lumber (Pageland, S.C.) www.cmtuckerlumber.com
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Coastal Treated Products (Weldon, N.C.; Oxford, Pa.; Belington, W.V.; Havana, Fl.) www.coastaltreated.com
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Commonwealth Wood Preservers (Hampton, Va.)
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Cox Industries (Orangeburg, Eutawville, North, S.C.; Vidalia, Ga.; Coleridge, Cove City, Leland, N.C.; Blackstone, Newsoms, Va.; Hainesport, N.J.) www.coxwood.com
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Culpeper Wood Preservers (Culpeper, Fredericksburg, Va.; Federalsburg, Md.; Columbia, S.C.; Shelbyville, In.) www.culpeperwood.com Fortress Wood Products (Elizabeth City, Greensboro, Henderson, N.C.) www.fortresswood.com
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Long Life Treated Wood (Hebron, Md.) longlifetreatedwood.com
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Madison Wood Preservers (Madison, Va.) www.madwood.com √
McRae Woodtreating (Mount Gilead, N.C.)
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Pitts Lumber (Saluda, Va.)
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South East Lumber Co. (Kernersville, N.C.) www.south-eastlumber.com
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Spartanburg Forest Products (Allendale, Seneca, S.C.; Hampton, Moneta, Va.; Mosheim, Tn.; Scotland Neck, Stony Point, N.C.; Cresco, Pa.; S. Lancaster, Ma.) www.spartanburgforestproducts.com
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Tarheel Wood Treating (Morrisville, N.C.) tarheelwoodtreating.com
Water Repellent
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EL2
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April 2013
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Penta
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PTI
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The Merchant Magazine
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Wood Preservers (Warsaw, Va.) www.woodpreservers.com
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BB&S Treated Lumber of New England (N. Kingstown, R.I.) www.bbslumber.com
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Valley Timber Sales (Gordonsville, Va.) www.valleytimbersales.com
Northeast
Other*
FRT
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McCready Lumber (Pulaski, Va.)
CCA
√ PTI
International Forest Products (Houston, Tx.) www.ifphouston.com
Mid-Atlantic
(EL2 • PTI)
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Carbon-Based
Hatfield Lumber (Hatfield, Ar.)
Borates
√
(MCA • MCQ • μCA-C)
Copper Suspended
√
Pressure Treaters (Plant Locations)
(ACQ • CA)
Copper Solution
2013
Eastex Forest Products (Houston, Tx.)
Pressure Treaters
Wood Preservatives
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Building-Products.com
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Northeast Treaters (Belchertown, Ma.; Athens, N.Y.) netreaters.com
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PTI
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PTI
H.M. Stauffer & Sons (Leola, Pa.) www.hmstauffer.com
Midwest
(EL2 • PTI)
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Hager Wood Preserving (Kent, Mi.) hagerwood.com
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Land O Lakes Wood Preserving (Tenstrike, Mn.) www.landolakeswood.net
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Lavelle Co. (Fargo, N.D.) lavellecompany.com
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Mauk Mid West Forest Products (Bay City, Mi.)
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Biewer Lumber (Seneca, Il.; Lansing, Mi.; Prentice, Wi.) www.biewerlumber.com
Hills Products Group (Whitewood, S.D.) www.hillspg.com
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Midwest Timber (Edwardsburg, Mi.) www.midwesttimber.com
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Midwest Wood Treating (Norwalk, Oh.) www.amtim.com
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Northern Crossarm (Chippewa Falls, Wi.) www.crossarm.com
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Perma-Treat of Illinois (Marion, Il.) permatreatlumber.com
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Peterson Wood Treating (Superior, Wi.) www.petersonwoodtreating.com Timber Wholesalers (Willmar, Mn.) www.timberwholesalersinc.com
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Woods Run Forest Products (Colfax, Wi.)
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West
Allweather Wood (Fort Collins, Loveland, Co.; Washougal, Wa.; North Bend [Coos Head Forest Products], White City, Or.; Ukiah, Ca. [TrueGuard]) www.allweatherwood.com
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J.H. Baxter (Eugene, Or.; Weed, Ca. [Pacific States Treating]) www.jhbaxter.com
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Other*
Maine Wood Treaters (Mechanic Falls, Me.) www.mainewoodtreaters.com
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Water Repellent
√
FRT
√
√
CCA
Colonie Wood Treating (Albany, N.Y.) www.holbrooklumber.com
Carbon-Based
√
Borates
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Pressure Treaters (Plant Locations)
(MCA • MCQ • μCA-C)
Copper Suspended
Bestway Enterprises (Cortland, Gouverneur, N.Y.; Cresco, Pa.; S. Lancaster, Ma.; Stony Point, N.C.) www.bestwaylumber.com
Pressure Treaters
(ACQ • CA)
Copper Solution
2013
Wood Preservatives
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PTI
PTI
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ACZA
ACZA Creo 50/50 Penta
California Cascade Industries (Fontana, Woodland [Western Wood Treating], Ca.) www.californiacascade.com
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Coast Wood Preserving/Fontana Wood Preserving (Ukiah, Fontana, Ca.) www.fontanawholesalelumber.com
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Conrad Forest Products (North Bend, Rainier, Or.; Arbuckle, Ca.) www.conradfp.com
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Building-Products.com
April 2013
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The Merchant Magazine
ACZA PTrib
15
Challenge Denied to Treated Wood Ban in Alaska and Oregon
Honolulu Wood Treating (Kapolei, Hi.) www.hwthawaii.com
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HPM Wood Protection Co. (Hilo, Hi.) www.hpmhawaii.com
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Natron-Jasper Wood Products (Jasper, Or.) www.jasper-wood-products.com
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Superior Wood Treating (Sumner, Wa.) www.superiorwoodtreating.com
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McFarland Cascade (Tacoma, Wa.; Eugene, Or.; Electric Mills, Ms.; Galloway, B.C.) www.ldm.com
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Pacific Wood Preserving Cos. (Bakersfield, Ca.; Sheridan, Or.; Silver Springs, Nv.; Eloy, Az.) www.pacificwood.com
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PSR Co. (Kirkland, Wa.)
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Other*
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Water Repellent
(EL2 • PTI)
Carbon-Based
Borates
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FRT
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Wood Preservatives
CCA
Exterior Wood (Washougal, Wa.) www.exteriorwood.com
(MCA • MCQ • μCA-C)
Pressure Treaters (Plant Locations)
(ACQ • CA)
2013
Copper Suspended
Pressure Treaters
able chemicals” in the waters of Alaska and Oregon. WWPI, along with the Treated Wood Council, Creosote Council, Railway Tie Association, and Southern Pressure Treaters Association, had also accused the Corps of acting arbitrarily and capriciously in approving
Copper Solution
A federal judge has ruled that the Western Wood Preservers Institute and its fellow trade associations lacked standing to sue the U.S. Army Corps of Engineers (COE) for reportedly failing to notify the public when it banned wood treated with creosote, pentachlorophenol and other “leach-
Trib
Penta
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Penta Creo CuNap
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ACZA Penta Creo
Royal Pacific Industries (McMinnville, Or.)
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Thunderbolt Wood Treating (Riverbank, Ca.) www.thunderboltwoodtreating.com
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Utah Wood Preserving (Salt Lake City, Ut.) www.fps-ut.com
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Western Wood Preserving Co. (Sumner, Wa.) www.westernwoodpreserving.com
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ACZA
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* Abbreviations: Copper Azole w/BARamine (BAR), Copper 8 Quinolinolate (Cu8), Copper Naphthenate (CuNap), Creosote (Creo), Creo./Petroleum (50/50), EcoLife (EL2), Fire Retardant (FRT), PermaTrib (PTrib), Tribucide II (Trib), Wolman AG (PTI).
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The Merchant Magazine
April 2013
nationwide permits by districts in Alaska and Portland, Or., in violation of the Administrative Procedures Act, COE regulations, Endangered Species Act, National Environmental Policy Act, and Regulatory Flexibility Act. The treated wood industry, however, insists the case is not settled. “Though on the surface the dismissal of the lawsuit may look final, in reality it is still an open case,” said WWPI’s Ted LaDoux. “The industry will be amending its lawsuit to satisfy the judge’s reasons for dismissal on the claims dismissed without prejudice and submitting a motion for reconsideration. So we have another shot at making our lawsuit move forward.” In the interim, the current COE Regional Condition bans the use of all treated wood for above and in-water applications only in the fresh and salt waters under jurisdiction of the COE Portland District and certain treated piling products (creosote and penta) in fresh-water applications under jurisdiction of the Alaska District. “There is no broad state ban on use or sale of treated piling in either state,” LaDoux said. “However, Oregon’s permit conditions have become so restrictive, along with the fact most ports or marinas to get approval to use treated wood piling are forced to go through a lengthy and costly consultation process with NOAA-Fisheries. As a result, it is just easier for them to use an alternative material that is perceived to be less controversial.” Alaska still widely uses treated wood pilings in salt water.
New Tax Credit Should Stoke Demand for Rail Ties
A new tax credit for short line railroads that upgrade their tracks should boost demand for treated hardwood and softwood ties by anywhere from 500,000 to an additional 1.2 million ties. The Railway Tie Association now forecasts total new wood tie demand in 2013 to range between 23.3 million and 24 million. The 45G Infrastructure Tax Credit was authorized retroactively for 2012 and extended for 2013, providing short lines with a credit of 50¢ for every dollar invested in track rehabilitation, up to $3,500 times the railroad’s total track miles. Building-Products.com
INDUSTRY Trends By Ben Midgette, LP Building Products
Laminated strand lumber helps meet special demands of tall wood buildings
T
HE MULTIFAMILY industry is expected to remain strong through 2013 and into 2014, according to the National Association of Home Builders. The organization has forecast 299,000 multifamily housing starts for 2013, a 22% improvement over the previous year. As builders and developers seek cost-effective ways to meet the demand, many are turning to wood framing for four- and five-story buildings—and even up to six stories in Canada. However, wood shrinkage
can be an issue. Laminated strand lumber (LSL) provides an effective means of dealing with shrinkage in wall plates. Wood framing in taller buildings offers a number of benefits, from product availability to strength and durability. Plus, the reduced material and labor cost of building with wood, when compared to steel or concrete, means a cost-competitive option. But wood framing isn’t without its challenges, especially when it comes to shrinkage. Shrinkage occurs in
LAMINATED STRAND LUMBER typically has moisture content of about 7% to 8%, less than the equalized framing in most enclosed structures. All photos courtesy of LP Building Products
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April 2013
solid-sawn lumber as the wood’s moisture content dries from manufacturing conditions to equilibrium. The percent of shrinkage across the grain of lumber is roughly 40 times greater than along the length. Because of this, the shrinkage in a building caused by wall plates will be significantly greater than that caused by the studs. With moisture content of up to 19%, traditional surfaced-dry lumber will shrink as it reaches its moisture equilibrium in the finished building— typically somewhere between 8% and 12%. As the lumber dries, it’s not uncommon to see a quarter of an inch of shrinkage per story in a typical multifamily building. For a four- or fivestory building, that’s more than an inch of shrinkage, with the wall plates alone accounting for nearly a third of the total, according to a technical report from Western Wood Products Association. Wall shrinkage in multifamily developments can affect both the shear wall performance and structural capability of the building. Additionally, shrinkage can lead to moisture infiltration. Window seals can break as framing misaligns with brick and stucco veneer. Plumbing components running through the building’s framing members can also be damaged if those members shrink. Precise compensation for building movement with flashing and detailing is difficult and expensive because of lumber’s natural variability in moisture content and other properties. Little can be done to fix building shrinkage retroactively, so builders Building-Products.com
drywall cracking around windows or framing, especially in sliding glass door and specialty window applications, and shallow headers allow for transoms and arched windows. Tall Wall Framing: LSL is excellent for framing in walls over 10 ft. high, as it reduces movement that could lead to stress cracks and leaking seals. Columns: LSL provides a solid, continuous load path for hold-downs in high-wind areas. Truss Chords: Well suited for attic or girder applications, LSL has excellent plate and nail-holding capabilities. Stair Stringers: Because LSL resists shrinking and twisting, it reduces the likelihood of squeaks. To learn more about LSL and to view an infographic on the effects of wall shrinkage, visit www.whatislsl.com. – Ben Midgette is technical services manager in the engineered wood products division of LP Building Products, Nashville, Tn. Reach him via www.lpcorp.com. WALL SHRINKAGE in multifamily developments can affect both the shear wall performance and structural capability of the building. Using LSL provides an effective means of dealng with both.
and developers planning to construct tall wood buildings need a solution for mitigating shrinkage on the front end. Using LSL for horizontal framing members in the wall plate system can help. LSL is created from a mixture of hardwoods. The raw logs are debarked, cut into strands, blended with waterproof adhesives that contain no formaldehyde, and formed into dense mats. A massive steam injection press then uses steam and pressure to convert the mats into billets. The final product typically has moisture content around 7% to 8%, less than the equalized framing in most enclosed structures. Wall plate shrinkage is then minimal or nonexistent because the moisture content of LSL is so close to the moisture equilibrium of the building. Further mitigation of wall shrinkage along the length of the grain can be obtained with LSL in stud and rim board applications. Plus, LSL studs are strong, straight and true, helping reduce product waste and labor time when used instead of traditional studs. Due to its strength and consistency, LSL rim board is ideal for supporting both high vertical and lateral loads in multi-story construction and is more dimensional stable than lumber. The benefits of LSL don’t end there. The manufacturing process for LSL provides a uniform cure and even density gradient across the thickness of the product, adding to its strength and making it more resistant to warping, shrinking and twisting. The strongest LSL on the market is rated up to 1.75E, making it an ideal alternative to traditional lumber for beams, headers and tall wall stud applications. LSL products can be a direct replacement for 2x4, 2x6, 2x8, and 2x10 lumber products. LSL can also serve as a cost-competitive alternative to LVL and glulam beams. LSL has a number of additional application benefits, including: Roof Framing: LSL is ideal for complex and contemporary roofs or vaulted ceilings because it stays straight. Door & Window Headers: Due to its resistance to twisting and warping, LSL can reduce the likelihood of Building-Products.com
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April 2013
The Merchant Magazine
19
COMPETITIVE Intelligence By Carla Waldemar
Diversity training
B
ILL HOUGH SR. is like those oldtime preachers testifying that the End is Near. But instead of “Repent!” he preaches: “Diversify or Perish!” And, sadly, that’s become the fate, he notes, of many an independent dealer who didn’t heed his message. He’s c.e.o.-cum-cheerleader (and, at 70, by no means emeritus) of Phillips Building Supply, with three operations in Mississippi—headquartered in Gulfport—and a new launch across the state line in Picayune, La. The outfit began life in the 1950s as a sawmill and timber company that, from the outset, saw change coming and stared it squarely in the face. “When the big boys took over logging, the company sold off land and turned to retail,” says Bill. “But you can’t make a living selling lumber and plywood,” he quickly learned. “There’s no mark-up on them; you can’t make any money.” That insight was the first clue that it was high time to diversify. But how
do you begin? “You look at the bottom line. It took me awhile to struggle through it, figure out what makes money—but you evaluate and then aim at how you can.” Becoming a hardware store was not the answer, he says: “Chain stores have that niche all figured out.” Well… perhaps metal? Hurricane Katrina was a pretty good convincer. “Metal roofs held up better,” he says. “We started buying metal roofing, but it’s difficult to order up: the time frame,” which involves cooling your (or—worse—your customer’s) heels with a lengthy wait, and buying pieces and patches. “If you’re short, or they’re defective, it’s your fault.” So, Phillips decided to fabricate its own. “We rented at first, but the operation did so well that, three years ago, we built a multi-million dollar facility, invested in equipment and materials (and it took a huge investment in order to be competitive). It took us from a three-step to a two-step operation,”
EARLY ON, Mississippi dealer Phillips Building Supply realized it would have to diversify to thrive, including recently expanding across state lines with its newest store in Picayune, La.
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The Merchant Magazine
April 2013
eliminating the middle-man mark-up. About 60% of Phillips’ business is commercial, and those clients love this new roofing option. Plus, diversification into specialty arenas, such as this, keeps Phillips in the black. Bill says, “After Katrina, people moved in with their special businesses—cabinets, rebar, sheeting—hoping to make money. So, if you didn’t diversify, that would leave a dealer only with lumber and plywood”—and a room in the poorhouse. “So,” adds Bill in the understatement of the month, “we decided to sell a lot of stuff.” Phillips already had been making trusses for over 15 years and continued to push that niche. (“We sell 30 to 40 a year, both residential and commercial”). The next move was to add a wood treatment plant to capture the market for outdoor lumber, either for decks or—even bigger—“huge offshore stuff, like poles.” Architectural hardware seemed a logical further diversification, and has proved a lucrative one. On its 18-acre campus, Phillips also sports a an interior door plant, exterior door plant, and commercial steel door operation, as well as a commercial hardware outlet—think fire-rated doors, washroom equipment. The company also welds metal frames and bends rebar. The government loves it, and Phillips loves them right back: “We’ve got 10 people on staff involved in bidding. The government bids on specs, and the specs are huge. You’ve got to be compliant, label the doors. We handle all that. We saw a need, and we graduated. We’d had one guy working on specs; now, it’s mushroomed. We have three,” accounting for such projects as the new airport’s bathrooms, a $1 million account—and work for DuPont. With the Navel Construction Battalion located nearby, “There’s a lot of government work—the whole Building-Products.com
AMONG PHILLIPS’ longtime niches are a wood treating facility (upper) and truss plant (lower).
gamut from wood products to architectural hardware.” But, remember: diversify! Those accounts are only part of the pie. “In our other locations, 50% of our customers are residential, including walk-ins. People love the way we do special stuff, like millwork”—yes, Phillips has its own custom plant—“and hardware. We’ve got a showroom with cabinet and kitchen & bath designers on staff, and we can answer questions. We serve good, old-time contractors, too; we’ve got 4,000 to 5,000 accounts.” Why is that? “They come here for the best service at the best prices. And, they get answers. We’ve got a lot of gray on our staff; many have been here over 30 years, so they know their stuff. Plus, we’ve invested in a huge inventory, a lot of material in stock—special SKUs, strange things— so they don’t have to wait around for special orders.” Oh, and did we mention that Bill prefers diversity to rigor mortis? Then it should come as no surprise that, despite lukewarm demand at the moment, he’s steering Phillips to go green. “It’s coming our way from the Northeast, so we have to be able to furnish green products. We became LEED-certified for chain of custody. It’s not easy to keep up with the standards,” he allows, “things like special labels, keeping items separate—but the military and Building-Products.com
the government will go completely green,” he’s convinced. And he’ll be ready for them. (He even sells Green Egg barbecues.) The Internet wasn’t his first love, either. “I’m 70,” he reminds us, “and I fought (son) Bill Jr. over the computer for a long time.” Acknowledging that it’s the wave of the future, Phillips has hired a fulltime IT guy (“the geek”) to orchestrate its website. Regrets? Ha! “We made 20 sales on it yesterday,” reports Bill. “You’d be surprised how huge it will be in years to come,” he’s certain, adding, “If anything puts chain stores out of business, it’ll be that. We have a lot of machines onsite here, ourselves, so we shop the Net for parts. And people all over the country seek us out for special tools, hardware, and LEED products.” And, guess how he gets rid of his “dogs”? Advertises on eBay. And they fly out the door. “Sure, we lose money on them, but we’d lose more if we didn’t,” he states about his discontinued stock. Same goes for culls. Well, that isn’t quite true. On these, he makes a tidy profit. Rather than toss the scraps that cherry-pickers have left unsold, Bill cuts them into stakes, on which “I make more money than if someone drives in for a piece. I have no loss on dimension lumber; in fact, I can hardly keep up with the stake-business demand. I have to purchase #4 lumber to keep up with the call for stakes. It costs contractors time and money to make their own, and they need ’em on every job.” And the added beauty of it is, “There’s no waste, so it works out just right.” Leaving no niche unturned, Bill has also grown a rental business in two of his locations. “It makes some money,but the name of the game is, it brings in customers. They get to know who you are and what you do. Our customer base uses this stuff, like escalators, every day.” And they also utilize dumpsters. Therefore, so does Phillips, which has 200 on hand to rent, underscoring Bill’s canny business plan: “Catch ’em on everything you can.” And you’d be a fool not to, according to the way of thinking that has kept the company solidly in the black. “It’s easy for us to incorporate all these services, because we can use the same infrastructure, like billing. If these functions were stand-alone, it’d be complicated; but we can mail one bill for everything—products, rentals, what have you—meaning, true one-stop shopping. That makes it easier on the customer, too, both in time and money.” So, are we having fun yet? Apparently so. “We’ve been in business 50 years, but there’s never been much turnover. And we have a lot of good managers; they run their own show. Sure, the downturn was horrible—not only the economy, but the hurricane and the BP oil spill—a lot of adversity. But we’re not leveraged. No debt. “I’m 70,” he restates with the spunk of a young pup, “and I still enjoy working. I’ve got a lot of good friends in the business, and many of those friends are good customers, too; we all grew up together.” Maybe the only thing Phillips doesn’t sell—yet—is rocking chairs. But clearly Bill has no need for one. Carla Waldemar cwaldemar@comcast.net April 2013
The Merchant Magazine
21
OLSEN On Sales By James Olsen
Leverage selling
A
RCHIMEDES (Greek mathematician, 287 B.C.-212 B.C.) said, “Give me a place to stand and a lever and I can move the world.” Why do two salespeople working in identical markets, with identical inventories, and identical customers, have different results? If it is a question of talent, desire or hard work, the answer is obvious. I refer to a sales mystery. I am talking about the seller who is talented, does work hard, and has sales skills. Sometimes the salesperson performing at a lower level actually works harder. What explains his lower production? Why does he consistently perform at a lower pace than his partner who is not more personable, smarter and does not work harder? What is the differentiator? Archimedes may have the answer. We were raised on hard work. We were taught that hard work and education overcome all. True to a point. Education and hard work will give us an opportunity to live well. But hard work and education alone will not put us in the league with the master sellers and big-time producers. Hard work and product knowledge alone are not the answer. Salespeople know this. Many “hard workers” fail in the sales business, while some (to the naked eye) easygoing salespeople are massive producers. Often the difference is our use of leverage.
Chasing or building?
We must hustle and work hard for business. We must have a sense of urgency. A “nose for the money” is key, but hustle alone is a singular strategy and not the way of the master seller. Many salespeople chase orders instead of building a business. They chase the hottest markets and products. This is an energy game. Nothing is built. We can make a living with this strategy if we are talented, but we are not building a base business (fulcrum). Five years in the future we will still be “hustling” for orders, while our partner who stayed with a certain customer group or product, while they hustled, built a base business (fulcrum) which they can now leverage to produce twice as much with (seemingly) the same or less effort.
What are you good at?
Relationships/Customers. We are making 80% of our income from fewer than 10 relationships. Take a long, hard, analytical look at your top 10 relationships and begin to build your leverage with them. Simple yet profound analysis: Time Spent vs. Income Received. Measure exactly how much time you spend with each customer and how much income you receive from that relationship. It seems simple, but it will reveal where we are most leveraging our time and skills.
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The Merchant Magazine
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You are in a competitive market. Customers are doing business with you because you are doing something right; you are bringing them a competitive advantage. Now sell/ leverage that advantage to others. When we prospect we will look for similar customers. We will start stronger/faster with them because we know we can help them. We have proof. We are already helping others just like them. This creates positive momentum while adding to our fulcrum. Sales is a competitive business. We will always have to hustle, so let’s build a leverage base for ourselves as we compete! Products/Services. What am I currently selling? Who else can I sell it to? Which other industries will use this product? Our expertise in this product will create the same positive momentum our relationship leverage does for us with the same long-term benefits of building our lever. Geography. “Better a fool in his own town than a wise man away from home” goes the Spanish proverb. Freight, logistics and just knowing a guy who can get that done is a leverage advantage built by the seller who learns his territory like the cracks on his fingers. Market Position. A friend to everyone is a friend to no one. We cannot be the best at everything. Figure out your position and be the best at that. The producer, retailer, re-manner, distributor and office wholesaler all have positions (fulcrum points) in the market. The master seller in any organization understands their individual as well as their company’s strengths and sells to and builds on them. Hard work and leverage. When we combine our daily sales energy with Archimedes’ principle of leverage, we will move the world! James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
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Plum Creek Restarts Montana Sawmil
Plum Creek Timber’s stud mill in Evergreen, Mt.—closed since 2009— was scheduled to resume operations on April 1. “While the recession took a toll on Plum Creek’s manufacturing business, lately we have witnessed a slow
DEALER Briefs City Mill, Iwilei, Hi., had its roof torn off by sudden high winds that ripped through its yard March 17.
but steady improvement in the marketplace,” said vice president Tom Ray. “What’s really been the changing factor is the dramatic increase in the price of studs.” As an example, a 1,000 bd. ft. of kiln-dried Douglas fir or larch that recently sold for $200 is now bringing close to $400. Coupled with growth in the housing construction industry, Ray said, the economics were right to resume production. “We expect to have about 30 jobs coming back to the mill,” he said.
“We’ll restart with one shift. We’re trying to find the appropriate balance between log supply and the market.” Due to better market conditions, the company had already hired more workers at several other facilities, including plywood plants in Evergreen and Columbia Falls, Mt. “Over the past year, housing has moved from being a drag on the economy to being a bright spot,” said president and c.e.o. Rick Holley. “We are seeing improving demand for lumber and wood panels that is expected to translate into higher demand and pricing for logs in 2013.”
Weaver Lumber, Redding, Ca., is joining True Value Hardware, in an effort to expand its predominately pro business to consumers. Ace Hardware, Watsonville, Ca., is liquidating its 19-year-old store on Freedom Blvd. as it prepares to relocate June 1 to a larger facility down the street. True Value Hardware, Yelm, Wa., is closing after 72 years of family ownership. Operator Scott Demich blamed the poor economy. Ace Hardware , Casa Grande, Az., has relocated to a larger, 9,950-sq. ft. storefront. Owner Jan Blanco also holds Aces in Tempe and Chandler, Az. Orchard Supply Hardware
submitted plans to replace its oldest unit—a 67-year-old store in San Jose, Ca.—with a new 48,603-sq. ft. building with garden center. The current 26,000-sq. ft. building “has an awkward layout and was added onto over the years,” said marketing director Rick Saunders. “It’s eclectic and hard to get around.”
Lowe’s confirmed it will still build a 125,601-sq. ft. store with 31,544-sq. ft. garden center on 12 acres in Albany, Or., despite a delay in starting construction. Habitat for Humanity relocated its ReStore discount LBM outlet in southeast Portland, Or., to a more accessible, 22,000-sq. ft. location. Anniversaries: Anawalt Lumber, Los Angeles, Ca., 90th … Linda Mar Ace Home Center, Pacifica, Ca., 60th … Building-Products.com
April 2013
The Merchant Magazine
25
New National Wholesaler Opens with Longer Terms
A new wholesale lumber company has been launched that specializes in 60-day terms for retailers. “Cash flow is tight in the construction supply industry,” said Joe Johnson, president of National Lumber & Building Products, Casper, Wy. “Sixty-day terms are not real common for smaller independent lumber retailers. This gives them the same purchasing power as the large chains, with no membership fees or having to join any club. They are simply approved for a line of credit.” Johnson, former purchasing agent with Builders Choice, Vermillion, S.D., said National Lumber (www.nlbp.net) will shop for the best price and have the building materials shipped direct to retailers, by pallet or truckload, from a large local vendor. Initially, the majority of sales are
expected to be commodity lumber, but he said the company expects to expand into categories dictated by retailers’ demands, “whatever the customer wants,” Johnson said. “If a customer specifically wants, say, James Hardie fiber cement, we’ll shop it for him.”
Sherwood Buys Talon Forest
Sherwood Lumber, Islandia, N.Y., has acquired Talon Forest, Portland, Or., from AFA Forest Products, Bolton, Ont. John Percin, Rob Turk, and the rest of Talon’s trader group began working at Sherwood’s Lake Oswego, Or., office in early April, more than doubling the size of Sherwood’s presence in the Portland market and strengthening its purchasing power in panels. “This is a big win for our customers,” said v.p. of sales David Gaudreau. “Combining this new staff
with our existing Portland trading group, led by Bart Bartholomew, will strengthen Sherwood’s overall position in the West, Midwest and Southeast markets.” AFA purchased Talon from former principals Percin, Turk and Steven Ward in 2010.
SUPPLIER Briefs Silver City Lumber shuttered its sales office in Three Forks, Mt., consolidating operations at its main office in Chattaroy, Wa. California Cascade Industries is now distributing Fortress Railing Products railings and post caps in the Sacramento, Woodland and Fontana, Ca., areas.
Pacific Wood Preserving of Bakersfield , Ca., and Nevada Wood Preserving, Silver Springs,
Nv., have been certified as Woman Business Enterprises by the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission. Elaina Jackson is president, c.e.o., and majority shareholder.
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Boral Roofing , Irvine, Ca., secured exclusive rights to promote Nansulate Crystal roof coating. Perennial Wood now offers its 1x4 decking with a mahogany finish. Kemper System America has named Allied Building Products its 2012 Distributor of the Year for its commitment to specifiers of roofing, surfacing and waterproofing systems.
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April 2013
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LP BUILDING PRODUCTS, Nashville, Tn., turned out to watch c.e.o. Curt Stevens ring the opening bell at the New York Stock Exchange, celebrating the company’s 40th anniversary. Pictured (left to right) are Mike Kinney, director of business development and investor relations; chief financial officer Sallie Bailey; c.e.o. Curt Stevens; treasurer Mark Tobin, and John Merrell, NYSE senior v.p.-global corporate client group.
Rise in U.S. Lumber Demand Catches World’s Attention
North American lumber production began to pick up in 2012, with U.S. output rising 8% and Canadian production increasing 5% over the previous year, according to Wood Resources International. The U.S. housing market is continuing to improve, with higher house prices, lower inventories, and limited sales of foreclosure homes, which were increasingly converted into rental properties. Canadian sawmills, which export a majority of their lumber to the U.S., ramped up production during 2012 to meet the resultant rise in demand for lumber. In particular, sawmills in the eastern provinces saw output jump 16% in the fourth quarter. U.S. lumber prices have risen by over 60% from late 2011 to March 2013—drawing the attention of sawmills far away from North America. With substantially higher prices and a predicted increase in the demand for lumber in 2013, many foreign companies hope to be able to increase shipments of lumber to U.S. shores in the coming year. The strong lumber market has similarly pushed sawlog prices upward throughout North America. Prices for Douglas-fir sawlogs in the Western U.S. reached a fiveyear high in fourth quarter 2012. Prices continued upward in first quarter 2013, due to higher log demand both from domestic sawmills and from log buyers in Asia. Sawlog prices have also inched up in Coastal British Columbia and Eastern Canada as a result of tighter log supply. Pine sawlog prices in the U.S. South have been surprisingly stable since 2010 and, in fourth quarter 2012, were close to their lowest level in almost 15 years. However, with the improved housing market in the U.S. and higher lumber prices, it can be expected that sawmills will increase the consumption of logs and that the Southern states will follow the rest of North America with upward trending log prices during 2013.
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KAHLE On Sales By Dave Kahle
How often should sales managers visit customers?
H
a sales manager visit the customers? There are a couple of ways to OW OFTEN SHOULD
answer this question. From one perspective, you need to have your own relationship with the good customers
in your area of responsibility. There are several reasons for that. First of all, you’re a boss—part of the company’s management. As such, you are perceived to have more power and influence than a salesperson. Your good customers will want to know you, because the relationship with you gives them access to higher levels within your organization. Additionally, many of these customers will tell you things that they won’t tell the salesperson. They will share concerns, plans and goals that they don’t share with your salesperson. Second, you need your own relationship with the good customers so as to provide a back-up if the salesperson leaves. In the worst case scenario, if a disgruntled salesperson leaves and joins the competition, you need to know who the customers are. They need to know that you are the face of the company behind the frontline salesperson. Notice that the emphasis here is on “good” customers. I don’t think that you need to know every customer, nor do you need to know the prospects. Now, back to the question. How often should you visit the customers? Often enough to accomplish the above two objectives. Then, you should visit them with your salespeople to support the salesperson, to add credibility to his/her presence, and to coach and counsel the salesperson on techniques and strategy. That’s the first answer. The second answer is simpler: More than you do. I have yet to meet a sales manager who spent as much time in the field as he/she would like to spend. I can almost categorically state that every sales manager should spend more time in the field than they do. – Dave Kahle is a distribution industry-focused consultant, trainer and author of nine books, including How to Sell Anything to Anyone Anytime. Reach him at (616) 451-9377 or www.davekahle.com.
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FAMILY Business By Wayne Rivers
What will your legacy be?
A
FEW WEEKS ago my wife sent me a troubling text. It read, “I have some bad news. Call me right away.” I assumed the bad news was something innocuous like a bounced check or fleas on our dogs. When I called, she was in tears. Her cousin Mike, age 42 and an enterprising young businessman, had died in his sleep. Mike had a history of heart issues, but there was no noticeable warning. He simply didn’t wake up. Mike left behind a grieving widow, three young children, and a small family business. Mike’s death has had a strange effect on my thinking. At first, I must admit I was relieved that the family tragedy was a bit removed. When I heard my wife crying into the phone, I was terrified that something had happened to one of our children or our aging parents. I was thankful that the bad news wasn’t even worse. But, as time has gone on, I think about Mike almost every day, and I see and feel more of the tragedy of this young man’s passing. His oldest child is 10 years old. One wonders what memories of his father the youngster will retain. And what about the younger kids? They will probably have even fuzzier memories of their dad. Their retail business, still reeling from the lingering effects of The Great Recession, is left in the hands of Mike’s wife. They had divided the duties so that Wendy was the creative, marketing, and merchandising genius, while Mike handled all the financial and administrative duties. Now Wendy finds all of the business responsibilities on her shoulders, and she must chart a new future direction
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without her life and business partner. Mike’s passing also started me thinking about family businesses in general. He didn’t have the time or luxury to think about his legacy. He was only 42 years old and he was working too hard. But, for our family business readers who are older, how important is it to think about what exactly your legacy will be? If your name were called next week, what would your legacy be with respect to your family business? Would your children and grandchildren commend you for having been a great steward of family and business resources? Would they remember someone who carefully monitored finances and
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cash flow and understood the proper sources and uses of money? Could they recall a terrific mentor? Would they remember a good teacher of life’s and business’s important lessons? Would they warmly think about a leader who hired excellent people and trusted them to do their jobs while holding them accountable for executing big picture plans? Would they remember a cheerful optimist who had confidence that the family business could withstand any challenge if everyone rallied and pulled together? Or, looking at the other side of the family business coin, would they remember a demanding boss so overwhelmed by hundreds of daily details that he barely had time to eat? Would they lament a workaholic who expected everyone else to work super-human hours too? Would they retain frustrated memories of a manager rather than a leader—someone who could only think of the next day or the next week and not five or 10 years down the road? Would they harbor resentment over someone who didn’t have time to strategically plan for management succession and consequently left behind no one who knew what to do without his daily direction and supervision? Would they be dismayed by the recollection of someone who didn’t have the time or inclination to plan for ownership succession and who left the family with vexing, potentially divisive decisions about how family assets and company shares should be divided? Or would they remember a pessimist who always saw the glass as half empty and their performance Building-Products.com
as somehow lacking? Life is fragile and uncertain. Accidents and tragedies are real, and it isn’t always “the other guy.” We don’t know when our names will be called. Don’t we owe it to our families, our employees, our customers, and our communities to be good stewards and to devote time, attention, energy, and money to planning for the day when our efforts must cease? I bet Mike would say we do. The reality is that we can choose to be the masters of our own time and the architects of our own destiny. Leaving the tasks and strategies of succession to chance, or dumping them into the hands of others, is planning to fail via failing to plan. And how might that stain an otherwise successful entrepreneur’s legacy? – Wayne Rivers is the president of The Family Business Institute Inc., Raleigh, N.C. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493. Reprinted with permission of Key Resources LLC. No portion of this article may be reproduced without its permission.
APP Watch
Application: DBSTATION Produced by: CertainTeed Gypsum Price: Free Platforms: iPad, Android A new mobile app simulates the acoustical performance of SilentFX noise-reducing gypsum board, allowing architects and builders to actually hear the acoustical differences of wall systems in real-world applications. The dBstation acoustic simulator features a catalogue where residential and commercial systems can be compared under equivalent settings and a scenario app to demonstrate how specific noises (ringing telephones in an office, watching TV at home, etc.) can impact interior spaces. Download from iTunes or Google Play Building-Products.com
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MOVERS & Shakers Chris Richter has been promoted to president of Western Woods Inc., Chico, Ca. Rick Richter is now chairman of the board; Tom von Moos, v.p., and Patti Ryther, company secretary. Patrick Cardoza, ex-Builders Supply, is new to sales. Les Baker IV is the new general mgr. at Best Moulding, Albuquerque, N.M. Rob Bivens, ex-Golden State Lumber, is a new Northern California field sales rep for AZEK. Brian Kelly, ex-Weyerhaeuser, is new to sales at Taiga Building Products, Sanger, Ca. Scott Steiss, ex-BlueLinx, is new to Greenleaf Trading, Denver, Co., as senior lumber trader. Shawna Stafford, ex-Kingston Lumber Supply, has joined the inside sales team at Stock Building Supply, Liberty Lake, Wa. Jeff Turley was promoted to mgr. of Stock’s door shop in Layton, Ut. David Manke has joined the lumber sales staff at Buckeye Pacific, Portland, Or. Nancy Schnabel is also new, focusing on OSB.
Marcia Kirschbaum has joined Panda Windows & Doors, Las Vegas, Nv., as factory direct sales agent for Southern California. Joseph Joslin, ex-Chicago Metallic, has joined USG International, as architectural solutions mgr. for the West, based in the San Francisco Bay Area. Ken Bishop is now with Pella Corp., as sales mgr. for Phoenix, Az. Todd D. Norton is new to DAP, as territory mgr. for Orange County, Ca. Jim Hill, ex-Momentive, has rejoined Henry Co., as territory sales mgr. for the San Diego, Ca., area. Hunter Shanks has been named director of hardwood sales for the western U.S. and Asia at Besse Forest Products, Gladstone, Mi. Patrick Petrossi is now in outside sales at Thermal Industries, Anaheim, Ca. Minas Apelian, ex-J.M. Huber, has been appointed v.p. of research & development for CertainTeed Corp., Valley Forge, Pa. Corey McKinney has joined Do it Best Corp., Fort Wayne, In., as project leader-lumber & building materials.
Glenn Fischer has joined ProBuild, Denver, Co., as an assistant buyer. Kaylynn Poplawski, ex-Fiberon, has joined Fortress Railing Products, as Northwest territory mgr., based in the Seattle, Wa., area. Mike Bolt is a new trader at Mill Direct Lumber Sales, Lake Oswego, Or. Kerry Jones, ex-Capital Lumber, is now inside sales mgr. at Weyerhaeuser’s Salt Lake City, Ut., distribution center. Bobbye Choate has been promoted to product supply mgr. for Weyco’s Raymond, Wa., lumber mill. Jared Fisher has joined the outside sales team at Hayward Lumber Co., Santa Maria, Ca. Ron Erdahl, ex-Moulding & Millwork, has been named executive v.p.-sales for Composite Technology International, Damascus, Or. Rick Kitch, ex-Silver City Lumber, is new to sales at Tri-Pro Forest Products, Oldtown, Id. Juno Comilang is now in sales at Hardware Lumber Maui, Wailuku, Hi.
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Lionel Fujioka is new to counter sales at Resource Building Materials, Chino, Ca. Cindy Van Hook is new to Coast Building Products, Dublin, Ca., as office mgr. Lara Lee has been appointed senior v.p.-customer experience design for Lowe’s Cos., Mooresville, N.C. Jim Lake has been promoted to c.e.o. and president at Ainsworth Lumber, Vancouver, B.C. Kip Fotheringham is now v.p.-sales & marketing at Hampton Lumber Sales Canada, Richmond, B.C. Peter Barton, ex-Welco Lumber, is new to the staff of Centurion Lumber, Vancouver, B.C. Scott Humphrey, ex-Shaw, is now c.e.o. of the World Floor Covering Association, Anaheim, Ca. Dr. Borjen “B.J.” Yeh, P.E., technical services director for APA-The Engineered Wood Association, Tacoma, Wa., has been named a recipient of ASTM International’s Award of Merit. Rod N. Reel is organizing the annual fishing outing for Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.
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Far East Contingent Tours Western Sawmills
Last month, a delegation of Chinese and Korean wood importers toured lumber mills in western Montana. “The forest materials in Montana are a good fit for our Chinese market,� said Wu Zhi Xi, general manager of the Shanghai Daonuo Industry Co. “China has a high demand for forest resources. For Montana, this is really good.� Like many on the tour, Xi has worked with suppliers from Washington and Oregon, but had little
knowledge about the products offered in Montana. “Given China’s projected growth rate over the next five to 10 years, the demand for wood products will increase 20%,� he said. “I definitely want to further my business relationship with Montana companies.� According to Craig Rawlings, president and c.e.o. of the Forest Business Network, growing demand in Asia represents a new opportunity for wood-oriented businesses in Montana. “China, in particular, has never used wood in construction, but in the
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last few years, they keep using more,� he said. “It’s not like we’re competing for a market that already exists, or trying to place wood against concrete— it’s a brand-new market for us.� Arnie Sherman, executive director of the Montana World Trade Center at the University of Montana, met the delegation in Idaho at the Small Log Conference, hosted by the Forest Business Network, then took them on a tour of Montana producers. “They were surprised to see what we offer,� he said. “We’re very excited about the potential of long-term relationships and building new partnerships in this market.� At Sustainable Lumber, Missoula, Mt., Ryan Palma told the group that his company already was sold out six weeks in advance, but they plan to increase capacity from 60,000 bd. ft. to 100,000 ft. in the coming months. Gordy Sanders, manager of Pyramid Mountain Lumber, Seeley Lake, Mt., said that the mill currently has more customers looking for product than it has lumber to sell, but it never hurts to distribute materials across multiple markets. “We have the capability to ramp up or increase production, but it’s all a function of what we can bring into the plant site, as far as raw materials go,� he said. “That’s the limitation that keeps us at the operational level we’re at. All mills in Montana would look to increase production if the materials to support that were to increase.�
True Value to Stay on Island
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Local treasure True Value Hardware, Mercer Island, Wa., has found a new location, months before its landlord was to bulldoze the property to make way for a mixed-use residential/retail project. Owner De Calvert’s new space is 5,700 sq. ft.— not quite as large as her current facility. “It is a bit smaller, but we will just have to make it more efficient,� she said. True Value has been a beloved island mainstay since 1977, but its lease was set to expire in July.
Bay Area Lowe’s Accused of Racial Discrimination
Six current and former Lowe’s workers have filed suit against Lowe’s, claiming management at the two-year-old store in San Francisco, Ca., discriminated against minorities. According to the suit, minority Building-Products.com
employees were allegedly passed over for promotions, hired only to meet city-mandated quotas, and frequently fired only to be replaced by nonminorities.
Rogue Valley Rail Renamed
WCTU Railway has been renamed Rogue Valley Terminal Railroad Corp., after the small Oregon rail operation’s purchase by Scott DeVries. DeVries, a former engineer for Canadian National Railway, purchased the operation in late 2012 after the U.S. Surface Transportation Board demanded that Marmon Transportation Services divest itself of two shortlines by Dec. 31. The railway includes 14 miles of sidings, spurs, switching leads, and two yards in a two-square-mile area in White City, Or. DeVries is also considering developing a reload facility.
U.S., trademarked in 1984 and active into the early 2000s, but dormant for the last several years. The Pau Lope Company aims to return the brand “better and stronger than ever.” Some regional distributution has already been established, with some geogra-
phies remaining available. The Pau Lope Co. has aligned with selected Brazilian sawmill producers, secured a long-term direct importer, and refreshed the grade and quality to be consistent with the Pau Lope’s heritage of excellence.
Pau Lope Decking Returns
A new company, The Pau Lope Company LLC, Cape Canaveral, Fl., has been formed to re-introduce the Pau Lope brand of ipé decking. Pau Lope was among the first hardwood decking imported into the
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MANAGEMENT Tips By Scott Simpson, BlueTarp Financial
Should someone else manage your credit program? C
URRENT FORECASTS for 2013 show continued growth in the housing market. Last year, new home sales hit a two-year high while builder confidence ratings rose to prerecession levels on the National Home Builders/ Wells Fargo Housing Market Index. As the economy continues to improve, merchants should prepare for greater stress on recession-tightened inventory, staff, operations and resources. Credit screenings, approvals and reactive extensions, as well as billing, collections and providing quality customer service, can significantly and swiftly drain working capital. By outsourcing your trade credit needs to a trusted financial services company, you can shore up your cash flow and unintentional risk and focus on expanding your business for
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success. As a building supply dealer amidst a housing market upswing, you are going to need cash flow to invest in your top-line drivers—things like additional outside sales reps and value-added services. Attempting to go it alone could potentially stunt growth. By selecting a trade credit supplier that specializes in the building supply industry, and shares the same values, you will gain a partner with valuable experience, expertise, tools and intuition. Most importantly, a trade credit supplier can offer an attractive alternative to the kind of financing that increases your risk portfolio and incurs unnecessary debt (e.g., pursuing the increasingly elusive bank loan). Unlike banks, which make money from interest and hidden fees, the right financial partner will align incentives completely with your business and develop a customized program to suit your and your customers’ specific needs. Third-party trade credit professionals are risk-reducers. They understand the importance of reliable cash flow, and their objective is to provide it on your terms—guaranteed when you want it and need it the most. With the ability to offer higher approval rates, access to larger credit lines, and flexible terms, credit providers increase sales while minimizing dealer risks. A quality credit provider will treat your customers the way you do, and replace the headaches of unguaranteed accounts receivable with consistent, predictable payments for all customer purchases. As a result, you are free to invest in rebuilding your services, stock and personnel in preparation for growth. If cash flow is like water, you shouldn’t wait until you’re thirsty to drink. Think ahead. Cash flow supports several key components to expansion and growth, such as your sales team and the additional inventory you’ll need to keep pace with larger orders and greater demand. Take advantage of early payment discounts, and be wary of the self-funded cash gap. On average, dealers are expected to pay suppliers every 30 days, but receive payment from clients every 48 days. Over the course of a five-month period, you could end up funding your own expenses 50% of the time. These gaps are unnecessary and dangerous to your business. Of course, the thought of letting Building-Products.com
someone else manage a financial program that you have controlled for so long can be a frightening one, particularly after an extended period of downsizing efforts and looming economic uncertainty. But it doesn’t have to be. In fact, outsourcing trade credit should have the opposite effect. Pick a partner with the same incentive to treat your customers the way you do—one that grows when your customers spend more. Take comfort in the knowledge
that you are not alone. Ask your associations and trusted partners who they use. The sooner you alleviate the burden of an in-house trade credit program, the sooner you will gain greater control to move forward with financial confidence and peace of mind. – As c.e.o., Scott Simpson oversees the overall strategic direction and portfolio management of BlueTarp Financial. He can be reached at (207) 797-5900 or ssimpson@bluetarp.com.
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PROJECT Spotlight Treated Wood
Treated wood helps restore historic rotunda
I
CHARLOTTESVILLE, VA., the historic rotunda at the University of Virginia—which was founded and designed by Thomas Jefferson—is undergoing restoration with the help of a local wood preserver and a LBM dealer. N
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Replacement of the rotunda’s domed roof became the first phase of the $51 million restoration project, since it’s been leaking for years. Better Living Building Supply, Charlottesville, supplied southern yellow pine for the roof replacement.
April 2013
The kiln-dried wood was pressure treated with copper azole by Madison Wood Preservers, Madison, Va. In the early days of the university, professors and students enjoyed weekly dinners at Monticello, Jefferson’s nearby estate. By the time
Building-Products.com
Jefferson died—on July 4, 1826—the rotunda was nearly completed. Unfortunately, after fire gutted the structure in 1895, it had to be rebuilt. “The brick of the rotunda is the only feature that survives of Jefferson’s original building,” said Jody Lahendro, the university’s historic preservation architect and project manager. “I’ve come to learn so much more about the rotunda in terms of appreciating the changes that have been made over time.” Although the structure undergoes periodic maintenance, the last major renovation was in 1976—to coincide with the nation’s bicentennial and the 150th anniversary of Jefferson’s death. Efforts were made to preserve the original design, but many details are a matter of conjecture. The remaining phases of the project will focus on everything under the dome, such as new windows, electrical and plumbing systems, data infrastructure, sprinklers, and security systems. Completion of the roof restoration is scheduled for late May, just in time for graduation ceremonies at the university. Jefferson would be proud.
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IN Memoriam Robert Lorenz “R.L.” Day, 80, president of LMH Building Center, Pueblo, Co., died March 6 in Pueblo. He began his career at Brown Lumber, Pueblo, in the 1950s, before joinng BMC, Pueblo. In 1970, he and
L.A. Stokesberry purchased the yard and renamed it Economy Lumber & Hardware, eventually adding locations in Greeley, Aurora and Longmont, Co. After they sold the chain to BMC West in 1994, he
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stayed on to manage the Pueblo operation. He launched LMH in 2003 with John Dasher and son Bobby Day. He was a past president of the Mountain States Lumber & Building Material Dealers Association. Stanley Louis Buck II, 73, retired hardwood lumber trader, died Feb. 5 from injuries suffered in a fall at his home in Raleigh, N.C. After owning and operating Crossland Forest Products, Raleigh, and Allegheny Wood Sales, Willow Grove, Pa., he joined Peterman Lumber, Chino, Ca., in the early 1990s and two years later went to work for Atlas Lumber Co., Chino, retiring in the early 2000s. Arthur Kootenai “Art” Avey, 94, former owner of Avey Brothers Lumber, Kettle Falls, Wa., died Feb. 1 in Colville, Wa. During World War II, he served in the U.S. Army Air Transport Command as a pilot and flight instructor. After the war, he and his brother, Al, started the lumber business. They sold to Pack River Lumber in 1969 and continued to work for the company until 1976. Lawrence Morbeck, 79, retired manager of Standard Lumber Co., Moscow, Id., died March 9 after a short battle with cancer. After serving in the U.S. Army and working for local farmers, he joined Rima Lumber, Pullman, Id. In 1978, he relocated to Moscow, to become manager of Standard Lumber for 18 years. Horris M. Crane, 75, co-founder of La Cueva Lumber & Hardware, Jemez Springs, N.M., died March 20. He ran the store from 1979 until the early 1980s with his twin brother, Morris, and their wives, along with a contracting company, Crane Construction.
ASSOCIATION Update Western Wood Preservers Institute announced that director of marketing services Jerry Parks is leaving June 30, after 19 years with WWPI. West Coast Lumber & Building Material Association will play golf
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June 13 at its annual associates/dealers tournament at Rancho Solano Golf Club, Fairfield, Ca. Western Hardwood Association has selected Congresswoman Jaime Herrera-Beutler (R.-Wa.) as the keynote speaker of its April 30-May 2 international convention & expo at DoubleTree Lloyd Center, Portland, Or. Seminars will focus on environmental policies, exporting and importing, design trends, plus production and use trends. International Wood Products Association has hired Cindy Squires as its new executive v.p., succeeding Brent McClendon. Squires had served since 2003 as
the chief counsel for public affairs and director of regulatory affairs for the National Marine Manufacturers Association, where she directed its regulatory, legal and trade programs. Composite Panel Association will gather for a spring meeting May 5-7 at Loews Coronado Bay, San Diego, Ca. Highlights will include a panel discussion of the impacts of forestry and energy policies, speakers from the EPA and CARB, and a golf tournament at Steele Canyon Country Club. Western States Roofing Contractors Association will host a June 9-12 convention & expo at Peppermill Hotel & Casino, Reno, Nv.
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LOS ANGELES Hardwood Lumberman’s Club recently presented its Founders Award to Charlie Bohnhoff for his longtime service to the group. (Left to right) Christa Bohnhoff, recipient Charlie Bohnhoff, Michael Bohnhoff, Walter Maas, all of Bohnhoff Lumber, Los Angeles, Ca.
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NEW Products
Electric Lift Trucks
Classic Composite Decking
Now available in new timber and granite colors, Fiberon Classic composite decking features a natural, woodgrain pattern. Deck boards are sold in 12’, 16’, and 20’ lengths with a .93”x5.25” profile. Fascia is available in 12’ lengths with a .75”x11.25” profile.
Cat Lift trucks are now available in 4,500 to 6,500 lb. capacity electric models. The EC22N2-EC30LN2 series have four-wheel, cushion tires, premium operator ergonomics, enhanced performance levels, and a modern design. The lifts are designed to work in a wide range of industries, including general warehousing and logistics applications.
FIBERONDECKING.COM
CAT-LIFT.COM
(800) 573-8841
(800) 228-5438
THUNDERBOLT WOOD TREATING “WE TREAT WOOD RIGHT”…Quality Wood Treating Services Since 1977
Treating Services Only (TSO)
www.thunderboltwoodtreating.com Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA
Bob Palacioz, Sales/Marketing Mgr. (916) 402-3248 • Fax (916) 339-2477 bob@thunderboltwoodtreating.com
Marine & Industrial Sales
Miguel Gutierrez (209) 747-7773 • Fax (209) 451-0425 miguel@thunderboltwoodtreating.com
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ACQ CCA 0000 BORATES D-BLAZE® ACZA (CHEMONITE®) Heat Treating Drying Services (KD, KDAT) Marine Piling Staining Service Rail Siding (BNSF) Coating Service: MFI-SLO8 Marine Grade Spray Polyurea Coating
Building-Products.com
Strong Asphalt Shingles
LED Lights
TAMKO’S Heritage IR laminated asphalt shingles have naturally deep shadow lines for the look of real wood shakes. A fiberglass mat and a non-woven polyester fabric with thermally bonded polyester fibers provide Class 4 impact-resistance. Six colors provide the perfect complement to any home.
LED lighting for decks, stairs and landscape from I-lighting employs easy-plug installation for seamless illumination. Each kit includes a complete set of fixtures, wiring harnesses, and fasteners. A photocell automatically controls lights, for safety, security, and energy efficiency.
TAMKO.COM
I-LIGHTINGONLINE.COM
(800) 641-4691
(888) 305-4232
g^^ ` l =` l o ml o ^ q fl k Premium Stainless Fasteners
pmb`f^iqvI=nr^ifq v= _bpq=vl r =`^k =dbq=bsbova^vK
^fpf=PMQLPMRLPNS=pí~áåäÉëë= k~áäëLpí~éäÉëL`çää~íÉÇ =pÅêÉïë Distributors are welcome
qbiW =QORJQQNJSMMU ==============t ÉÄW =ïïïK à~~ÅçKÅçã Building-Products.com
April 2013
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Polymer Flashing
HydroFlash self-adhered flashing from Benjamin Obdyke can be installed in cold temperatures. Constructed of a block co-polymer with a splitrelease liner, the product seals around nails without primer. It’s compatible with a wide range of building materials, including OSB, CDX sheathing, vinyl, and other building wraps.
BENJAMINOBDYKE.COM (800) 523-5261
Extra-Rugged Shingles
Two new asphalt shingles from GAF have proprietary advanced protection technology. Grand Sequoia IR has oversized tabs and a rugged wood-shake look, plus Class 4 impact resistance. Sienna’s dimensional look is created with diamond-shaped designs and artisan-crafted shapes—in four custom colors.
GAF.COM
(877) 423-7663
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Building-Products.com
Metal Framing Screws
The new XEQ self-drilling screw from Simpson Strong-Tie can be used for exterior metal framing. Designed specifically for use with SST connectors and cold-formed steel framing, the new screw undergoes a dual-hardened heat treatment. It also features a proprietary Quik Guard double-barrier coating for corrosion resistance in exterior applications.
STRONGTIE.COM/FASTEN (800) 999-5099
Warm Wood Window
ProVia’s Aeris windows combine the warmth and beauty of a solid-wood interior with the low maintenance of a welded vinyl frame and sash on the outside. They come in three species (oak, cherry and maple), in 16 stain and 16 paint colors. Neopar insulation and a Low-E coating enhance energy efficiency. Styles are double hung, casement, awning, slider, picture, bay, bow and various architectural shapes.
PROVIAPRODUCTS.COM (877) 389-0835
Brick Veneer
Manufactured brick veneer from Boral Stone Products has the look of handmade brick, but is easier to install. Thinner and lighter than traditional full-face bricks, they work well with a variety of architectural styles and are suitable for both interior and exterior applications. Tones are burgundy Rustic Manor and Moroccan Sand, a mix of several earthy colors.
BORALNA.COM
Lantern Repels Pests
A new portable lantern from ThermaCELL is 98% effective at warding off biting insects outdoors. The dark bronze lantern has a cylinder-shaped globe and three LED lights. It operates on a single butane cartridge, which heats a repellant mat that releases allethrin—a synthetic copy of a natural insecticide found in chrysanthemum flowers—to create a 15’x15’ comfort zone.
THERMACELL.COM (866) 753-3837
Building-Products.com
Distributed by
P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288 • (541) 535-3465
www.normandist.com
Superior Service, Products & Support
April 2013
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47
WWPA ANNUAL MEETING Photos by The Merchant
WESTERN WOOD PRODUCTS Association hosted its annual meeting March 3-5 at Embassy Suites Hotel, Portland, Or. [1] Hector Dimas, Rick Northrup, Pat Grady, Thomas D. Love, Rick Palmiter. [2] Kevin Paldino, Joe LaBerge. [3] Marty Mason, Mandie O’Malley, Steve Ackley. [4] Ronda & Dana Kookan, Brad
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Hatley. [5] Wes Bush, Tom Shaffer. [6] Shane Young, Robert West. [7] Bob & Connie Shepherd. [8] Wayne Bennett, James R. Olsen. [9] Sally Williams, Gregg Andrews. [10] Ted Roberts, George Emmerson. [11] Jack Greene, Jim Vandegrift. [12] Kevin Cheung, Bob Mai. [13] Frank & Connie Stewart. [14]
April 2013
Erol Deren, Ahren Spilker, Scott Elston. [15] Jeffrey Hodge, Howard Zosel. [16] Hakan Ekstrom, Grace Tam Cheung. [17] Steve Swanson, Kathleen & Chris Hughes. [18] Leonard Greer, David Durst. [19] Tricia Kilrain. [20] Bruce Daucsavage, Jamie Trenter. (More photos on next page) Building-Products.com
WWPA ANNUAL MEETING Photos by The Merchant
WESTERN manufacturers and wholesalers gathered in Portland, Or., for WWPA’s annual meeting (continued from previous page): [1] Russ & Beverly Tuvey. Craig Larsen. [2] Ed Cunningham, Matt Dierdorff. [3] Johnny Wilford, Janet Corbett, Sheldon Howell. [4] Terry Neal, Randy Strutin. [5] Betty Guzman, Erik Finrow. [6] Gary Stanley. [7] Kelly Robertson, Maurice Vialette. [8] Chris Thomas. [9] Steve Brandt, Ilene Young, Kip Burns. [10] Jeff Webber, Thomas Lovlien. [11] Joshua Tyler, Lee Jimerson. [12] Laurie Creech, Mark Corso, Cyndee Johnson. [13] Art & Shauna Andrews, Steve Schmitt, Duane Vaagen. Building-Products.com
[14] Ken Tennefoss, Gary Zaunder. [15] Rick Forgaard, Steve Zika. [16] Sherm Anderson, Dee Shaffer, Tony Colter. [17] Ron Hanson, Cherie & Doug Hanson. [18] Tom & Edna Searles, Adrienne & Kevin Binam.
April 2013
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2ND GROWTH Photos by The Merchant
WEST COAST LUMBER & Building Material Association’s 40-and-under 2nd Growth group held its March 7 meeting at Knott’s Berry Farm Resort Hotel, Buena Park, Ca. [1] David Abbott, Danny Sosa. [2] Jackie Pierce,
Tony Campbell. [3] Corey Kroviak, Chris Trudeau. [4] Terry Rasmussen, Natalie Allen, Mike Caputo. [5] Kyle Gillings, Joseph Madrigal, Tianna Cash, Chris Huntington, Fia Faumuina. [6] Nick Larr, Jarrett Deschenes, Jason Womack. [7] Bill Ferguson, Marc Spitz, Jean Henning, Tom Angel. [8] Dan Sweeney, Dan Croker, Mike Bland. [9] Jeff Donahoo, Jackie Vega, Mark Rommel, Ericka Chavez. [10] Janeece Louden, Larry Christensen, Betsy Bendix.
TREATERS
WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY
ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected FSC Certified SCS-COC-002513
909-350-1214
15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – sales@fontanawholesalelumber.com
www.fontanawholesalelumber.com
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Building-Products.com
2ND GROWTH Photos by The Merchant
MORE 2ND Growth (continued): [1] Jason Rutledge, Chris McDonough, Carlos Zarate, Allan Pantig. [2] Glenda DeFrange, Karen Glover. [3] Larry Bollinger, Jennifer Burford, Sean Cummings. [4] Rebecca Jones, Scott Whitman, Lisette Silverman. [5] Kris McConnell, Jackie Vega, Tiffany
Building-Products.com
Mendoza, Jay McArthur. [6] Adan Torres, Gerry Perez. [7] Tim Hummel, Jeff Donahoo, Doug Willis, Brenden Hexberg. [8] Barry Schneider, Bill Sullivan, Rex Klopfer. [9] Phillip Ho, Endy Flores, J.C. Lopez, Chris Johnson. [10] Grant Pearsall, Pete Meichtry, Chris Freeman.
April 2013
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CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-
HELP WANTED
0231 or dkoenig@ building-products.com. For more info, call (949) 8521990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.
HELP WANTED
NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.
CALIFORNIA CASCADE INDUSTRIES is currently hiring quality, seasoned salespeople. Opportunities are for both inside and outside sales. Send resume to ckaufenberg@ californiacascade.com
WANTED TO BUY WANTED: DOWNFALL & SECONDS Downfall, excess or salvage lumber, panels, roofing, etc., purchased for export. Contact CarlHanson103@aol.com, (619) 954-9955.
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Start your own subscription with our very next issue by calling Heather at (949) 852-1990 HKelly@building-products.com
Special promotional opportunity for NAWLA wholesalers, manufacturers, and service affiliates… The North American Wholesale Lumber Association is teaming with the lumber industry’s leading trade magazines to offer an exclusive marketing vehicle — The May 2013 issues of both The Merchant Magazine and sister publication Building Products Digest will feature an extensive special section devoted entirely to NAWLA and its members. Advertisers receive:
• Your ad message reaches all NAWLA wholesalers and their dealer customers • Discounted advertising rates for NAWLA members • Support of your association • Brand your company’s identity with NAWLA’s • All ad rates include FULL COLOR and optional FREE ad design • Up to 6 one-year subscriptions to The Merchant and/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 12, 2013
For rates, contact
Alan Oakes – ajoakes@aol.com (949) 852-1990, ext. 11
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Chuck Casey – ccasey@building-products.com (949) 852-1990, ext. 14
Building-Products.com
DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. West Coast Lumber & Building Material Association – April 11, golf tournament, Black Gold Golf Club, Yorba Linda, Ca.; (800) 266-4344; www.lumberassociation.org. Western Building Material Assn. – April 11-12, sales seminar, Heathman Lodge, Vancouver, Wa.; (360) 943-3054; wbma.org. Mountain States Lumber & Building Material Dealers Assn. – April 13, bowling tournament, Arapahoe Bowling Center, Greenwood Village, Co.; (303) 790-2695; www.mslbmda.org.
WHAT YOU WANT. WHEN YOU NEED IT. Dimension Lumber Treated Products Domestic
Timbers Green & K.D. Export
International Wood Products Assn. – April 17-19, annual convention, Vancouver, B.C.; (703) 820-6696; www.iwpawood.org. Forest Products Society – April 18-19, window & door symposium, Roseville, Mn.; (608) 231-1361; www.forestprod.org. National Kitchen & Bath Association – April 19-21, annual show, New Orleans, La.; (800) 843-6522; www.nkba.org. Rock Springs Home & Garden Show – April 19-21, Rock Springs, Wy.; (307) 382-0710; www.wyominghomeshow.com. Albuquerque Home & Garden Show – April 20-21, State Fairgrounds, Albquerque, N.M.; www.abqhomeandgardenshow.com. Transload Distribution Association – April 22-24, conference, Hilton, Rosemont, Il.; (503) 656-4282; www.transload.org. Wood Machinery Manufacturers of America – April 23-26 woodworking conference, Tempe, Az.; (443) 640-1052; wmma.org. Southern California Hoo-Hoo Club – April 26, 6th annual Don Gregson Memorial Golf Tournament, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; www.hoohoo117.org. Black Bart Hoo-Hoo Club – April 27, annual poker tournament & BBQ, Burgess Horse Barn, Healdsburg, Ca.; (707) 889-0049; www.blackbarthoohoo181.org. North American Wholesale Lumber Assn. – April 28-30, leadership conference, Palm Harbor, Fl.; (800) 527-8258; lumber.org. American Wood Protection Assn. – April 28-May 1, annual meeting, Sheraton Waikiki, Honolulu, Hi.; (205) 733-4077; awpa.com. National Assn. of Home Builders – April 29-May 1, green building conference, Nashville, Tn.; (800) 368-5242; www.nahb.org. Western Hardwood Association – April 30-May 2, convention & expo, Doubletree Lloyd Center, Portland, Or.; (360) 835-1600; www.westernhardwood.com. Olympic Logging Conference – May 1-3, Victoria, B.C.; (360) 4529357; www.olympicloggingconference.com. Material Handling Equipment Distributors Assn. – May 4-6, expo & convention, Palm Desert, Ca.; (847) 680-3500; mheda.org. Composite Panel Assn. – May 5-7, spring meeting, San Diego, Ca.; (301) 670-0604; www.compositepanel.org. Global Forest Products Leadership Summit – May 5-9, Vancouver, B.C.; www.forestproductssummit.com. National Retail Federation – May 7-8, global supply chain summit, Madison Hotel, Washington, D.C.; (800) 673-4692; www.nrf.com. National Hardware Show – May 7-9, Convention Center, Las Vegas, Nv.; (888) 425-9377; www.nationalhardwareshow.com. North American Retail Hardware Association – May 7-9, convention, Bellagio, Las Vegas, Nv.; (800) 772-4424; www.nrha.org. Wood Markets – May 8, global softwood log & lumber conference, Sheraton Wall Centre Hotel, Vancouver, B.C.; (604) 801-5996; www.woodmarkets.com. PwC Global Forest & Paper Industry Conference – May 9, Sheraton Wall Centre, Vancouver, B.C.; www.pwc.com. Do it Best Corp. – May 18-20, spring market, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com. 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 2013
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ADVERTISERS Index
IDEA File
For more information on advertisers, call them directly or visit their websites [in brackets].
You Want It? They Got It.
Knowing your customers and what they
want—even if it’s just one or two of something—is the key to success for a dealer in Yakima, Wa. “A lot of these guys come in day after day, so you get to know them,” says Jim Wilbanks, owner of C&H Hardware. “They will come in and say, ‘Hey, you know that thing I bought a couple of months ago? I need a couple more of them.’” Customers—a mix of contractors, fruit warehouse operators, farmers, and do-it-yourselfers—can search through bins of nuts and bolts to find the exact size they need, then buy what they need, rather than an entire box. “I’ve always said, we’re not a pretty store—we’re functional,” he comments. “A guy who climbs out from under a forklift, all greasy, can come get what he needs and be back to work in 10 minutes.” Two warehouses in back are used to store additional stock and out-of-season supplies, such as ice melt, space heaters, and fans. “If someone wants a bag of ice melt in June for some odd reason, we’d have it,” says Wilbanks. “Or a box fan in the middle of winter, we’d have it.” Other best sellers are wheelbarrows, rubber tires for carts, and small hinges used on orchard ladders— something big stores don’t carry because they don’t sell enough to make it worthwhile. The store also has a machine that presses fittings onto the ends of rubber hydraulic hoses used on forklifts and tractors. The 5,000-sq. ft. main building has a rough concrete floor, a testament to its former life as a feed store. In 1959, Vince Cresci and his wife, Edith Holman, became owners, changing the focus to hardware. Wilbanks joined the staff in the mid-1970s, left to work elsewhere, and returned in 1990. He became a part owner in 1995, and has owned the store outright the past six years. Last year was a good one for the store, due to a great growing season. Wilbanks is looking forward to another good year as local fruit growers, processors, and distributors expand into foreign markets, such as China and South Korea. “We had great weather, unlike in other parts of the country, so things went well,” he notes. “Everyone loves a good apple and we grow some of the best in the world, right here in Yakima.”
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Advantage Trim & Lumber [www.advantagelumber.com]..........41 Allweather Wood [www.allweatherwood.com] ............................23 Arch/Lonza [www.wolmanizedwood.com]...........................Cover I Bear Forest Products [www.bearfp.com].....................................42 Boise Cascade [www.bcewp.com]................................................43 BW Creative Wood [www.bwcreativewood.com] .......................34 Calculated Structural Designs [www.csdsoftware.com] ..............4 C&E Lumber Co. [www.lodgepolepine.com] ...............................26 Capital [www.capital-lumber.com]................................................35 Contechem [www.contechem.com]..............................................26 Eco Chemical [www.ecochemical.com] .......................................36 Fontana Wholesale Lumber [fontanawholesalelumber.com].....50 Hoover Treated Wood Products [www.frtw.com] .............Cover IV Huff Lumber Co. .............................................................................39 Humboldt Redwood [www.getredwood.com] ..............................23 Jaaco Corp. [www.jaaco.com].......................................................45 J.H. Baxter [www.jhbaxter.com]....................................................41 Kelleher [www.kelleher.com]...........................................................3 Keller Lumber Co............................................................................43 Kemper System [www.kemperol-roofpatch.com] .......................25 Manke Lumber Co. [www.mankelumber.com].............................53 Maze Nails [www.mazenails.com].................................................31 Mount Storm Forest Products [www.mountstorm.com].............19 Norman Distribution Inc. [www.normandist.com].......................47 North American Wholesale Lumber Assn. [www.nawla.org] .....12 Osmose [www.osmose.com] ...............................................Cover II Pacific States Treating ...................................................................28 Pacific Wood Preserving Cos. [www.pacificwood.com].............35 Quality Borate Co. [www.qualityborate.com] ..............................38 Redwood Empire [www.redwoodemp.com].................................29 Reel Lumber Service [www.reellumber.com] ..............................37 Regal Custom Millwork ..................................................................37 Rosboro [www.rosboro.com] ........................................................40 Roseburg Forest Products [www.rfpco.com] ..............................33 Royal Pacific Industries .................................................................46 RoyOMartin [www.royomartin.com] .............................................24 Screw Products [www.screw-products.com] ..............................28 Simpson Strong-Tie [www.strongtie.com]...................................17 Snider Industries [www.sniderindustries.com] ...........................51 Sunbelt [www.sunbeltracks.com].......................................Cover III Superior Wood Treating [www.superiorwoodtreating.com].......42 Swanson Group Sales Co. [www.swansongroupinc.com]...........7 Taiga Building Products [www.building.com] ............................30 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....44 Utah Wood Preserving Co. ............................................................37 Viance [www.treatedwood.com] .....................................................5 Weyerhaeuser [www.weyerhaeuser.com]....................................27 Building-Products.com
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