The
MERCHANT
MAY 2016
Magazine
THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
SPRING DECKING ISSUE • MILLWORK • NAWLA WHOLESALERS SPECIAL SECTION
May 2016
The
Volume 94 Number 11
MERCHANT
The
MERCHANT
Magazine
www.building-products.com
A publication of 526 Media Group, Inc.
Magazine
151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626
President/Publisher Patrick Adams padams@building-products.com Vice President, Marketing & Circulation Shelly Smith Adams sadams@building-products.com Publishers Emeritus David Cutler Alan Oakes Managing Editor David Koenig david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn, Dwight Curran Director of Sales Chuck Casey chuck@building-products.com
Special Features
In Every Issue
8 FEATURE STORY
6 ACROSS THE BOARD 16 COMPETITIVE INTELLIGENCE 20 OLSEN ON SALES 22 EVANGELIST MARKETING 36 APP WATCH 38 MOVERS & SHAKERS 64 SELLING WITH KAHLE 66 NEW PRODUCTS 79 ASSOCIATION UPDATE 80 IN MEMORIAM 80 CLASSIFIED MARKETPLACE 81 ADVERTISERS INDEX 81 DATE BOOK 82 FLASHBACK
MAKING DECKING SELECTION EASY
10 INDUSTRY TRENDS
TARGETING URBAN ROOFTOP DECKS
12 PRODUCT SPOTLIGHT
THE LATEST IN DECKING: FIBER CEMENT
14 MARGIN BUILDERS
EDGE-FREE DECK FASTENING
18 MANAGEMENT TIPS
PARTICIPATE IN DECK SAFETY MONTH
28 INDUSTRY TRENDS
KITCHEN/BATH MILLWORK RISES
32 INDUSTRY TRENDS
THE YEAR AHEAD IN DISTRIBUTION
44 NAWLA SPECIAL FOCUS 18-PAGE SPECIAL SECTION
72 PHOTO RECAP: SOCAL GOLF 76 EVENT RECAP: VANCOUVER NAWLA
Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & VIDEO
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May 2016
How to Advertise
PRINT or ONLINE Chuck Casey or Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com
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CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 by 526 Media Group, Inc. Periodicals Postage paid at Newport Beach, CA, and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2016 by 526 Media Group, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.
Building-Products.com
ACROSS the Board By Patrick Adams
Am I alone?
I
’LL ADMIT IT… I watch bad television. I know when it started and I’ll get to that in a minute, but even I am amazed sometimes at what I watch. The other night, I’m watching a “survival reality” show that puts two people in horrible locations around the world to see if they can survive for 21 days. My daughter asked me, “Why are they afraid?” I say, “Because they’re alone.” “Why is being alone scary?” “Not sure, but it seems that people, just like animals, like to have other people around. It makes them feel safe and comfortable.” She thought about that for a while and finally said, “That doesn’t make any sense. Scary things can still happen even when there’s people around.” Our industry has become a place of comfort for me and my family because I have found an environment full of people who appreciate the same things as me—family, hard work, values and doing the right thing. However, I wonder if the things that surround us outside our industry are changing? I remember when I used to think most of the world thought about things the same way that I did. I said the Pledge of Allegiance every morning at school and when I did, I thought about the words and they made me proud. At baseball games when it was time for the National Anthem, I took off my hat, stood up and was emotional at all that has been sacrificed so that we can have the life that we have today. When I’m at industry events and in our offices every day, I still feel that way. I started watching bad TV quite a while ago now because when I turned on the news every night, it would have me believe that not a single good thing happened anywhere in the world the entire day. I commute home from
work and those around me give me the impression that I did something wrong by simply being on the road with them. I watch our Presidential candidates yell and scream and attack and act like bullies… so they can earn the right to “represent us.” Is this the best we have to offer? Does this represent how we feel and what we believe? Have we entered a time where being selfish, being a bully or being dishonest is the winning formula? I don’t subscribe to this way of thinking and I’ve chosen to simply avoid it all together. We are better than this! I know it for a fact because I just returned from an industry event full of “competitors” who like the rest of this industry, are some of the best people I’ve ever met. Many of them I call “friends”—not because it benefits the business but because they’ve met my family, know stories about me and truly care about us. I’ve had people in this industry go out of their way to lend a hand when there was absolutely no good reason they should have other than it was just a good thing to do. Competitors don’t attack each other and they don’t lie to customers to sell more, because that would be wrong. There are countless examples in our industry where multiple generations have followed their fathers into the business, not because it was easy or to become wealthy, but because there was a history and a legacy that meant something more to them. I believe our industry used to be a reflection of our country at large and its values, but it’s beginning to feel more like we’re in a very special cocoon. I imagine what it would be like if the entire country and our leaders operated as this industry does? Like all of you, I do “this” for a reason bigger than a paycheck. I suppose we could all make more money if we wanted to, but I wanted more than that. I wanted to work in a way that reflected my values, allowed me to create an environment that supports my team’s lives and do something that matters. Thankfully, I’ve found that in this great industry with all of you. It’s up to all of us to keep it this way and not get “infected” by what we see and hear going on around us. Not because it’s popular or will make us more money but because it’s the right thing to do and we’re those kind of people where things like this still matter. “Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful, that’s what matters to me.” ~ Steve Jobs Patrick S. Adams Publisher/President padams@building-products.com
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Building-Products.com
AZEK Deck is greater than everyday stains.
ALLOY ARMOUR TECHNOLOGY™ is the next generation of deck capping that makes AZEK Deck resistant to stains, moisture, and fading. Its inorganic polymer cap and core also resist mold, mildew, and rot. Plus AZEK Deck is now covered by an industry-best, 30-year Fade & Stain Limited Warranty. When innovation and material science combine with style, the result is AZEK Deck. Visit AZEK.com/deck. Deck shown in Vintage Mahogany
FEATURE Story By Mike Descoteaux, DuraLife
Making decking selection easy
A
followed by performance and value are still the main criteria for selecting decking. This is especially true with composite materials given the ever-growing array of finishes, textures and price options. Consequently, homeowners and contractors alike are often overwhelmed by the sheer number of brand and product choices. This makes loyalty to one particular brand nearly impossible and the sales process even more complicated and less predictable. Further intensifying the entire experience for all involved are the varied offerings of the numerous suppliers serving the market. Why is it that most decking manufacturers actually limit a homeowner’s choice by only offering specific colors at each performance level or price point? Under this model, the poor, frustrated homeowner is simply out of luck if the chosen color of one decking product doesn’t match the performance or price of another within that same manufacturer’s line. Conversely, some leading suppliers offer as many as five or six separate deck boards with three to five colors per product and three length options. To carry a full inventory of just one of these manufacturer lines, a retailer would need to stock approximately 150 SKUs and that doesn’t even include their complementary railing products. Warehousing then offers another ESTHETIC APPEAL
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The Merchant Magazine
THE PROLIFERATION of options in decking and railings is giving many dealers “SKU creep.” (Photos by DuraLife)
May 2016
Building-Products.com
set of logistical nightmares under this scenario with the proliferation of all the appropriate decking products and colors negatively impacting both retailers and distributors. The understocking and overstocking of products, increased inventory costs, and expanded lead times are just a few of the ongoing problems related to “SKU creep.” Other challenges scroll all the way down to new product lines and colors that are promoted by manufacturers at the start of each new season as older, slow moving products or colors back up on the shelves. This results with overstocked distributors unable to warehouse all the latest colors and options from manufacturers and increases the number of job-lot deliveries to retailers with heightened handling and delivery costs. Manufacturers also experience the strain caused by increased inventory costs and/or lead-times as distributors become hesitant to order products with unknown returns. These slow movers must inevitably be discounted at the end of each season further reducing distributor sales margins. Fortunately some manufacturers have developed a very simple solution to this seemingly complex problem that does not include stocking every deck product imaginable. It starts by helping consumers to make knowledgeable and informed buying decisions before they ever reach the showroom floor. This includes providing samples across manufacturers’ complete lines of deck products. Research has shown that 60% to 70% of leads are successful when the customer makes the effort to thoroughly explore their decking options and then take the time to review choices with significant others in the privacy and comfort of their own homes. For instance, DuraLife facilitates such decisions by fulfilling customer requests for complimentary decking samples in any combination of collection, profile or color. Nearly 6 inches square, each miniature deck board can be chosen from any three of profiles available in a choice of four variegated, non-repeating woodgrain patterns or earth tones. Another option is the choice of sample railings in eight separate colors and dock planks. Once the requests are fulfilled, the leads are presented to local retailers for outreach. With much of the upfront work already done, the sales process is then greatly expedited without the Building-Products.com
RESEARCHING and qualifying customers’ wants and needs up front can help quickly zero in on the best decking for them.
worries or costs associated with having not enough or far too much stock on hand. It also takes the pressure off retail sales staff, who are not put on-the-spot by inquisitive customers just beginning to review their options. The process is backed by a comprehensive print and online marketing campaign as well as the vetting of leads by company sales representatives. In an era spent constantly battling increasingly shrinking bottom lines, distributors and retailers are constantly looking for new ways to increase profits and efficiencies through proven
sales and lead-generation programs. There are many quality decking manufacturers, but few that dedicate themselves to the best interests of their partners and customers with the continued introduction of new methods that streamline the sales process, while decreasing costly overhead. Never sacrifice quality and reliability for price. It’s always best to align with partners that provide all three. – Mike Descoteaux is marketing manager for DuraLife Decking & Railing. More information is available at www.duralifedecking.com, (800) 8668101, or info@duralifedecking.com.
May 2016
The Merchant Magazine
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INDUSTRY Trends By Stephanie Ornelas
Sky-high luxuries and other trends in decking
M
ORE AND MORE we’re seeing a growing desire for enhanced outdoor living and it all starts with decking. While there are many kinds of decks that range from all types of styles both big and small, one thing is certain, the desire for efficient decking in which its quality matches its attraction is not slowing down. We’re seeing a growing demand of quality decks despite the cost. Now more than ever, homeowners are paying close attention to the quality of the decking rather than the price. A desire to blend the inside with the outside is also a growing trend as well as roof-top decking for multifamily living.
Multi-family Amenities
Something that’s worth taking note of is the growing trend of rooftop decking in urban areas. Rooftop spaces are quickly becoming a big deal in upper middle-income households, and are now a must-have in mid- and high-rise buildings. This trend is likely the most appealing for young professionals. Phoenix-based Capital Lumber has been developing and supplying this market with Pau Lope brand ipé decking. The distributor has seen rising demand for rooftop spaces, particularly in metropolitan areas. Capital is capturing the rooftop hardwood decking market in two ways. For flat and level roof space, traditional deck boards are being installed over a conventional lumber sleeper network. Many of these installations are with edge grooved deck boards, which utilize hidden fasteners. When roof space is irregular or
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The Merchant Magazine
ROOFTOP decking is a growing trend in many urban cities due to an increasing desire for quality in outdoor living spaces. (Photos courtesy of Pau Lope Co.)
sloped, Capital features its Paul Lope Ipe’ patio tiles, 24” x 24” squares, which are installed over a pedestal sleeper network, thus creating a level deck surface. “We find the greatest roof top deck opportunity with our patio squares. We’re able to assist with the pedestal designs and take-offs, which our customers say is a big help,” said Justin Blue Hixson, product manager with Capital in Healdsburg, Ca. “With city property sizes so tight, if you can’t go out, we find opportunity in going up and our San Francisco Bay Area market is leading the way,” Hixson added. He predicts we’ll be seeing a lot more of this trend in cities like San Francisco around the U.S.
May 2016
Bringing the Outside In
One of the biggest trends we’re seeing in decking is the expansion of indoor styles to outdoor living areas. Homeowners are searching for more ways to extend the interior of their home into their backyards and patios. According to the Northeastern Retail Lumber Association, homeowners now prefer the variegated and rich, dark colors that complement indoor flooring options. Bringing the inside out also means decks are becoming more innovative. Outdoor BBQs/kitchens are becoming more popular and automation is making way for new innovations. Homeowners want to bring TVs and entertainment systems outside, allowing Building-Products.com
them to control everything with the touch of a remote-control button.
Quality over Quantity
As more homeowners start to pay closer attention to the details of outdoor living and decking specficially, it’s apparent that most will find that spending more for quality decks is a smart decision. “With redevelopment and new money coming to revitalize the metropolitan urban areas, we see an increasing need for quality outdoor living space,” Hixson added. The desire to enhance outdoor living spaces combined with a new generation of urban-loving millennials is paving the way for a new trends in decking. According to Jim VanPelt, owner of Pau Lope Co., “As far as recent deck trends, we’re seeing more buying and paying for the best. Whether in ipe’, hardwood, softwood, composite—there is a trend for paying more for better quality and longer lasting products.” IRREGULAR ROOFTOPS that are sloped or uneven are no exception to the trend. In these instances, Capital sells Pau Lope ipé 24” x 24” patio tile squares, which are installed over a pedestal sleeper network (upper right). The end result (lower) is an even, level deck surface with a stylish facade.
Building-Products.com
May 2016
The Merchant Magazine
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PRODUCT Spotlight Fiber Cement Decking
The latest deck material:
Fiber cement
O
reserved for trim and panelized products, such as siding and backerboard, fiber cement is now making its way to the outdoor living movement. Plycem is introducing to the U.S. the Allura fiber cement decking collection, taking advantage of the material’s inherent weather resistance, moisture imperviousness, durability and attractiveness. The decking line is engineered with NCE A TECHNOLOGY
a proprietary direct processing system that creates the natural look of wood and designed to add more authenticity to every customer’s design. The line is made to possess all the aesthetically pleasing features that come with having a natural wooden deck. Because the line features an advanced formulation, the product is designed to be highly resistant to fire, it’s eco-friendly, and cooler on your feet. It has also been formulated to
A NEW KIND OF DECK: Fiber cement decking is designed to eliminate costly repairs associated with water damage, fading deck color, wood rot, wood-boring insects, and board gaps.
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resist wood-boring insects and rotting. The company is really pushing the significance of these important features as they all lead to some key aspects that every homeowner desires: longlasting performance and durability and ultimate comfort. While a classy facade is starting to become more of a big deal to homeowners, Allura is also noticing that a growing desire is convenience, easy installation and low maintenance. The company hopes to prove that its fiber cement decking line will simultaneously cater to these needs. A trend that’s making headway right now is the natural, classy wood tone that blends well with the outdoors. To accommodate this, the decking line offers a cedar grain texture and a natural wood brown color with an optional groove or solid edge, and all backed by Allura’s 15-year ColorMax warranty. The features appear to be realistic with a broad choice of stains and styles. “The only time you have to repaint or stain fiber cement is if you want to change the color,” said Tom Taylor, Allura director of customer relations. “Allura decking looks like wood, but with none of the hassles. Fiber cement is changing everything we previously came to accept about backyard decks. It’s an affordable choice for transforming a landscape.” Declaring that the product is a great low-maintenance alternative to wood and a sustainable, long-lasting product, it seems as though Allura’s is finding an alternative way to enhance this new wave of outdoor living. Building-Products.com
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Hidden Fastening Systems
Pride in Craftsmanship
MARGIN Builders By Chip Manger, CAMO Edge Fastening
Deck builders look to edge-free fastening
N
OW AN EXTENSION of the home, homeowners are currently spending tens of thousands of dollars either refurbishing dilapidated decks or creating lavish spaces complete with multiple tiers, built-in seating, outdoor kitchens, hot tubs, electronics and space heaters. Given the investment along with higher performance and aesthetic expectations of homeowners, the demands for “outdoor room” looks have never been stronger. As a result, deck fastening has evolved greatly over the past several years to accommodate the natural wood decks that have dominated the category and the growth of low-maintenance composite and PVC decking. For instance, hidden systems such as clips and plugs were introduced for
grooved boards that met the demand for higher end indoor flooring looks and safer surfaces. But, there are disadvantages. In addition to costing more than traditional face fastening, they can be time consuming to install and can misfire if not placed properly. It also takes a general amount of installation expertise to keep the systems from loosening and producing deck boards that do not squeak or crack over time. On the other hand, galvanized or even stainless steel screws that are face-fastened from the top of the board are clearly visible, more vulnerable to moisture penetration, and can present a safety issue when deck boards split and fasteners pop. Color-matched screws are less visi-
GUIDE TOOLS position the deck screws and provide automatic gapping for easy installation. (All photos courtesy CAMO/National Nail)
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ble, but unless the screw heads are plastic coated, they can also get red hot in the sun, since metal heats up much more quickly than wood or composites. Screws not specifically designed for capped decking can also produce unwanted affects such as dimpling (an indentation around the screw head), white shearing (the stretching of the outer layer which causes white stretch marks around the head) and curled waste (small attached pieces of plastic that form around the screw head). Contractors want barefoot-friendly options that give their customers a better aesthetic over time. These issues have set the stage for secure, fastening solutions that combine the aesthetics of hidden clips and plug systems with the fast, easy installation of face-fastening. “My customers are looking for outdoor deck styles that mirror the indoors,” said Dominick Paragano, a sixth generation builder and owner of Paragano Construction in Short Hills, N.J. “That is why a fastener-free look has risen to the top of their lists—they want a clean, luxurious indoor flooring look taken to the outdoor deck.” Paragano is a proponent of edge fastening, which he calls the next generation of deck fastening. Edge fastening employs a simple technology that is easy to use and is up to 25% faster and 50% less expensive to install than clips. This method can utilize edge deck screws, guides that position the screws and provide automatic gapping, and bits that ensure depth of drive. And they’re easy to use—just set the guide on the deck board over Building-Products.com
Want to grow your profit margins?
COLLATED stand-up tools make installation even faster and easier.
the joist, load the screw, and drive the fastener into the edges of each board with a drill. The guides, which can cost anywhere from $20 to $50, work with virtually any decking material, have variations to accommodate nominal 6” boards as well as narrow boards, and offer multiple gap options including a no-gap option for treated wood decks that attaches to any drill and can also be used with secondary spacers to achieve other desired gaps. The faster and more affordable edge-fastening methods have advantages that extend beyond the enhanced aesthetics of a fastener-free surface. Edge fastening can help add life to the deck by reducing moisture absorption and surface cracking around the fastener, since the fastener is not fully exposed on the surface. From a safety perspective, edge fastening provides the peace of mind of never having to worry about protruding and unsightly screws loosening over time to create tripping or hazards for bare feet. No matter if the board is square shouldered or grooved, there are no clips that have to be held in place at just the right angle or timeconsuming plugs. “My crews are addicted to edge fastening,” said Paragano, “because it’s so fast and easy, and very intuitive.” He noted they jokingly wanted to figure out something else to do with the guides Building-Products.com
Just add light.
because they saved so much time on the job. To further fulfill the desire for smooth, fastener-free surfaces and high-speed installation, one edge-fastening system has been developed that combines the speed of a collated tool with the convenience of stand-up installation. In this case, the installer just walks along the length of the board and fastens it quickly, saving the installer both time and physical wear and tear on the knees and back. Collated stand-up versions average around $300. In addition, edge fastening works equally well with most forms of decking ranging from composites and PVC to pressure-treated softwoods, cedar, and tropical hardwoods like mahogany and ipé. “When it comes to speed, strength and a beautiful surface, I think edge fastening is the wave of the future,” said Paragano. As more contractors seek to bring the beauty and comfort of the indoors to homeowners’ outdoor spaces, they will continue to investigate new fastening systems for decks that speed installation and save time and labor— with stunning results. – With 31 years of experience in the lumber and decking industry, Chip Manger is vice president of business development for CAMO Edge Fastening at National Nail, Grand Rapids, Mi. May 2016
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The Merchant Magazine
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COMPETITIVE Intelligence By Carla Waldemar
Curry-ing favor
W
HEN A GENT named James Curry left Europe for a better life in America in 1853, he didn’t stay put in an eastern seaport. He struck out, looking for where the action was, until he came upon a spot in which he could make an impact with the leading millwork techniques he’d mastered in the old country. When he happened on Wooster, in a thriving sector of Ohio, he assessed it as the up-and-coming town he sought and put down stakes.
PRESIDENT David Nally was drawn to D.C. Curry’s long, strong history.
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Shrewd fellow. A hundred years later, in 1953, the railroad rumbling through the lumberyard routinely dropped off one hundred cars loaded with building supplies. Long before that, James’ son, David, had heeded President Lincoln’s enlistment call in the War Between the States. Wounded with shrapnel, he returned home to join the family business, now called D.C. Curry. It prospered, and prospered some more, until in 1974 the Curry family retired and sold to several employees. Upon which, it continued to prosper and prosper again, earning it bragging rights today as the second-oldest lumberyard in the entire state. Five years ago, David Nally signed on as president, following a 20-year stint with a big player in the industry— enticed, in large part, by the operation’s long, strong history. As we talk on the telephone, his excitement escalates: “We just obtained two of the company’s ornate bills of sale from 1917, which a fellow surfing eBay came across. And a set of Curry blueprints dated September 1921 a family discovered in their house and brought to us. We have people do that all the time,” he recounts. “And that’s what drew me: that iconic history!” Today Curry Lumber is touted as a leader in post-frame construction—in fact, that niche accounts for 60% of its business. But what folks don’t know, swears Nally, is that post-frame construction is no new-fangled upstart. It was a standard offering of many a lumberyard back in the day— “treated posts in old lumberyards, caustic telephone poles: Most independent yards had a post-frame division. That kind of construction has a tried-and-true background,” he says. And who’s in the market for it these days? Says Nally, “The agricultural sector’s big—lots of barns. And equestrian. Plus commercial and residential—garages and such.” The company, which both designs and builds these structures for its clients, points to a healthy growth in this market niche, thanks in part to the dearth of labor available today to traditional builders. “Time equals money,” Nally points out, “and pole buildings equate to one swift addition, bypassing a foundation. Also, they allow better access to wiring and insulation. Pole frames will be here for a long time,” he’s resting easy. But that’s not the whole story. Nally knows better than to pin a rep on poles alone. He’s quick to note what he calls “construction support services” Curry also stars in, including spouting crews and machines, blown-in insulation, concrete, masonry, the manufacture of garage doors and multiBuilding-Products.com
OHIO independent serves a fairly even mix of agriculture, residential and commercial accounts.
tudes of millwork, from doors and trim to book cases and picnic tables, constructed by the company’s fulltime millwork staff. He draws a good mix of these skilled artisans from the surrounding Amish community. And he pays them by the hour rather than the job, assuring attention to quality, not quantity. One stop shopping? “We’re trying,” he concurs, advertising Curry as the most complete supply center in the area. And it’s the only independent lumberyard left standing in Wooster, a slice made slimmer by the recent recession. “Many fell by the wayside,” he notes, “but we stayed busy.” His theory: “If you hit bottom, then it’s easy to rise: You adhere to the things that made you good.” Today, with the current labor shortage builders face, the company’s secret sauce features a unique recipe for revenue: Curry not only supplies contractors with material and equipment, it hires out its men. “When an outfit has trusses to set, for instance, we’ll send them four guys for three days: It’s a service to our customers to help out with the labor shortage in the industry.” His 70-plus full-timers could set records for longevity, too, says Nally, reeling off numbers like 50, 47 and 39 years of service. “But we’re also blessed with attracting new, up-and-coming talent, to marry with the wisdom of age. It’s an independent’s claim to fame,” he declares. And why do they stick around? Again, that 163-year history has a lot to do with it: “The fact that we’ve been part of the community for so long. We have had some customers for four generations. Business is all about relationships,” he underscores. “Ours go back longer and deeper.” And those generations of contractors keep coming back for more. “Labor is our biggest draw,” Nally allows. But they also cherish the staff’s experience when these customers seek solutions. “It’s not just telling them something; it’s based on hammer in hand.” And changing with the times. Instead of resting on the laurels of those attractive antique bills of sale, Nally has set
about creating new ones. Under his tenure as president, he’s added inventory such as doors, fiberglass insulation, ceramic tile and vinyl railing. (“Still,” he reminds a listener, “it’s all based on wood. From the beginning, wood shingles, wood siding. Wood has always been dominant.”) Even more vital, he’s brought Curry’s technology up to speed (starting from a speed of zero when he took over). “The technology was inadequate; it was all pencil and paper. Installed construction and accounting is very complicated and cumbersome at best,” he points out. “I expanded inventory, staff and technology and installed a new resolve: to approach everything related to customers to the best of our ability.” He makes sure Curry is web-savvy, too. Sure, “the best advertising is always word of a job well done,” he attests, “yet we aggressively utilize social media like never before.” And he calls on an under-the-radar marketing tool: good signage. “Your sign, facing traffic, gains in relevance when the wife can Google it while they’re driving by.” A full-time ad manager with 20 years in the industry is “very involved in connecting us via social media.” Business is split evenly between agriculture, residential and commercial accounts, “and last year, agriculture was particularly strong. But the trend of homeowners to ‘camp out with what I have’ is ready to explode,” he predicts. Thus the future looks golden. “I’ve got lots of ideas, and I can’t say enough about the value of cooperative relationships, alliances.” As Nally pledges, “We’ll keep right on!” Carla Waldemar cwaldemar@comcast.net
MANAGEMENT Tips By Chris Camfferman, Deckorators
Deck Safety Month 3 ways you can do your part
M
AY’S WARMING WEATHER allows homeowners around the country to start spending extended time outside on their decks. Unfortunately, large numbers of those decks are poorly maintained or unsafe—making the structures vulnerable to collapse and putting homeowners and their guests at risk of serious injury. Deck failures and resulting injuries can be avoided through regular inspection and maintenance of existing decks, and proper installation of new decks. May is national Deck Safety Month, and represents a perfect opportunity for dealers to do their part to promote safe outdoor living while potentially growing deck sales. Following are three ways dealers can participate in Deck Safety Month:
Serve as a safety resource
The nationwide need for proper inspection, maintenance and remodeling of existing decks has never been greater. According to North American
Deck & Railing Association, an estimated 50% of the 40 million residential decks and 10 million commercial decks in the United States are more than 25 years old. During Deck Safety Month, dealers can commit to becoming a true safety resource for customers. Make safety a main talking point with contractors and consumers, and be more intentional about making them aware of advancements in building codes and products. Stock the latest deck components—such as decking, railing and balusters—that can bring structures up to code while adding value to homes.
Get the word out
NADRA declared May 2006 the first Deck Safety Month and is dedicated to raising awareness for necessary deck safety measures. The group offers members a Deck Safety Month toolkit featuring a variety of resources dealers can use to promote making decks safe and code compliant.
RAISING awareness for deck safety can help you tap into the repair market. (Photo by Deckorators)
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Promotional materials featured in past Deck Safety Month toolkits include inspection checklists, a customizable press release template, customizable video, and social media content calendar. (Visit www.nadra.org for the latest information on promotional tools available for 2016, including a new mobile application for evaluating decks.) Utilize such resources to increase deck safety awareness among customers and show your company cares about the community.
Offer deck inspections
NADRA offers tools to help homeowners perform their own deck checks, but deck inspection demands professional training, know-how and experience. When looking to identify parts of a deck that require attention, there is no substitute for a professional inspection. During Deck Safety Month, consider having select staff members undergo training to achieve professional certification in deck inspection. (NADRA offers inspection training and certification for members.) Offering deck inspection services not only helps ensure that decks are safe and code compliant, it could also lead to new sales opportunities. This Deck Safety Month, dealers have an opportunity to help prevent accidents and injuries associated with improperly maintained or unsafe decks. Consider these ideas—and come up with creative initiatives of your own—to raise awareness for deck safety and possibly tap into a market of decks that need repair or replacement. – Chris Camfferman is the director of category marketing for Universal Forest Products and its Deckorators brand. For more information, visit deckorators.com. Building-Products.com
OLSEN On Sales By James Olsen
Ask for it
I
F ATHLETES train diligently but incorrectly, they are “grooving a mistake” (my golf swing comes to mind). Our success is based on the quantity and the quality of our sales calls. Our closing percentage is based on how many times we ask for the order; not on how many calls we make. The Master Seller asks for the order earlier and more often than their struggling counterpart. Most sellers are not asking for the order at all, but let’s give them one ask per call. The master seller asks for the order five times a call, so let’s call it four asks per call. The four-to-one ratio is true of their income difference. If we walk outside for 20 days with a bucket in our hands, we may collect some water, but it would be more efficient to go to the well and pump it into our bucket. Closing is a lot like the above example. The problem with doing it the wrong way or not the best way is that it works just enough for us to think that it’s the right way when it is really just the “walk-around-with-a-bucket-andwait-for-water-to-fall-into-it” method of closing.
Product Presenters & Quotrons
Most sellers present product to the customer and wait patiently for them to decide yes or no. For example: Product Presenter: “Hey Julie, I’ve got a car of 2x10 GDF out of Great Mill Inc., shipping in two weeks that gets into you at $450/MBF.” Customer: “Okay, I’ll let you know on that. What else do you have?” Product Presenter: “I’ve got some 2x4 925/8” out of Star Studs that get into you at $350/MBF.” Customer: “Okay, thanks. I’ll get back to you.” This is not a sales call. Many sellers will take the sincere “Thank you” from the customer as a positive sign and think it was a good call. Of course the buyer appreciates the information. They need information. Buyers need Quotrons and Product Presenters in their stable of suppliers—just don’t be one of them.
Servant/Master or Partner?
Master Sellers are partners with their customers. They are experts at what they do for their clients. The leadership seller is ahead of their customer. Too many sellers act like employees or servants. Do we give our customers great service? Absolutely! But we must service and sell them.
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Servant: “Hey, Julie, I’ve got a car of 2x10 GDF out of Great Mill Inc., shipping in two weeks that gets into you at $450/MBF. What do you think of that price?” Customer: “It’s okay; I’ll let you know on that. What else do you have?” Product Presenter: “I’ve got some 2x4 92 5/8” out of Star Studs that get into you at $350/MBF. What do you think of that?” Customer: “That’s too high and I don’t need any studs right now.” It takes fewer words to say it correctly. Instead of “What do you think of that price?” (seven words), we say, “So can I have your order?” (six words). The salesperson below presents product, tells the customer why they should buy, and asks for the order. The Master Seller also overcomes objections and continues to ask for the order. Master Seller: “Hey, Julie, I’ve got a car of 2x10 GDF out of Great Mill Inc., shipping in two weeks that gets into you at a great number. The market is strong on 2x10 and getting stronger. SPF 2x10 is going wild and it is unfindable in HF. We need to pick this one off before someone else in here sells it. What’s your order number?” Customer: “I’ve got enough 2x10 to last me until the end of June.” Master Seller: “I can hold the shipment until the first week in June. It won’t get to you until you need it; let’s put this one together. What’s your PO?” Customer: “Put it on my…” Personal charm and personality are an advantage in sales, but much less than the lower performer thinks. Asking for the order (more) is the divide between the haves and the have nots in sales. Master Sellers make business happen by calling enough of the right kinds of customers, presenting the right kind of products, and asking for the business in the right way— and asking for it a lot. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
EVANGELIST Marketing By Alex Goldfayn
Trade show selling secrets
W
HAT DO YOU do at industry trade shows? Eat. Learn (hopefully) from speakers. Meet suppliers. Meet customers. But what about intentionally, proactively growing business? What about bringing on new customers, and opening new opportunities? What about building buzz at the event for yourself and your firm? What about becoming the talk of the conference? This column is about how to sell more at the trade shows you attend. I implement these approaches for my clients, and I can tell you what they always tell me: “We were the only ones there doing this.” Want to grow your sales at trade shows? Try these techniques: Talk about your customers, not your products. Let everyone else jabber about their stuff. Their stats and specs, their technical details. You talk about your happy customers. Tell stories. Explain case studies, detail the terrible problems your customers had before they found you, and how you solved them. Then, offer the following: “You should let us help you like this. I bet you’ll be just as thrilled as these customers I’m telling you about.” Your booths should reflect happy customers, too. Display a list of your customers. The Internet marketing people call this social proof, but it works the same way at your trade show booth: if I can see my peers, my competition, working with you, I am going to seriously consider what I’m missing. Put testimonials on your walls. Let the competition use product photos. Use photos of happy customers. Or their buildings. Or of your staff, with their staff. Focus on the happy humans who pay you. Prepare your materials accordingly. Don’t give product catalogs, give testimonial catalogs. Hand out books of customer lists, testimonials and case studies. Leaf through them with your prospects while they stand with you. “Let’s make you this happy.” Put on a private event, attached to the trade show. By invitation only, host your customers and prospects at a private breakfast or happy hour. Invite people in the months and weeks before the event. Schedule it in the middle or towards the end of the conference, so that you can selectively invite people as they go past your booth. Raffle something of value. Stand and speak for five or 10 minutes to the group. It’s your event. Make it about you. Tell people what’s new. Show off some testimonials on a big screen. Be bold and shameless. Invite some current customers, and ask
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May 2016
them to speak for a minute about their experience with you during the event. Allow customers to interact with prospects at this event. This is called Evangelist Marketing. Let your customers sell you. Ironically, they’re better at it than you are. Ask for referrals. That’s right. Ask your customers to connect you to people they might know who are attending the tradeshow. Then contact those people, and invite them to come by your booth for a personal conversation. Ask your existing customers the did-you-know question. Ask your customers if they knew you sell other product lines which they do not currently buy. I’d bet my own money that most of them don’t know, even if you’ve told them before! Leverage your owner and highest level executives. Never underestimate the impact of the owner telling his or her story directly, especially to lower or mid-level people. It’s impressive, memorable, and it shows the owner cares. Have the owner spin some yarns, talk about the family, and build the right feelings for the people interacting with your firm. Practice and script the conversations in advance. Anticipate the three most common kinds of conversations you might have. For example: • With a large customer • With a smaller customer • With a prospect who has never heard of you What do you want to say to each type of person? What are the three most important items to communicate to each? Prepare them in advance. Write them down. Practice them. Role play. Success is attained in the preparation, not the event itself. A trade show is no place for modesty or meekness. Be confident. Be bold. And show off your abilities, preferably in the words and experiences of your happy customers. – Alex Goldfayn is CEO of The Evangelist Marketing Institute, a revenue growth consultancy, and author of The Revenue Growth Habit. Visit www.evangelistmktg.com. Alex Goldfayn CEO, Evangelist Marketing Institute www.evangelistmktg.com Building-Products.com
omewood to Be irst in Building Industry Partners LLC, the investment firm that launched U.S. LBM Holdings, has partnered with Jim Stockman to form Homewood Holdings LLC, Sacramento, Ca., to recapitalize Homewood Building Supply, Loomis, Ca., as the first step in building a regional LBM chain in the West. Founded in 1990 by the Noorani family, Homewood Lumber operates a lumberyard with hardware store in Loomis, truss plant in Yuba City, and door-hanging facility in Loomis. Postrecapitalization, Hamid Noorani will
egional BM
hain
retire after 26 years with the business, but remains an advisor and retains a ownership stake. Adam Noorani remains in management and is a shareholder in Homewood. “We are excited about the formation of our new LBM platform and its inaugural investment in Homewood Lumber,” said Zach Coopersmith, managing partner of BIP. “We were immediately drawn to the Noorani family’s integrity and Homewood’s strong reputation in the marketplace. Homewood is a long-established, trusted supplier in the greater
Sacramento market. We saw a fundamentally compelling business, and given its founder’s imminent retirement, an opportunity to inject new leadership, significant capital resources, long-term vision and a plan to build a best-in-class customer value proposition at a place where people love to come to work. There is significant opportunity ahead for Homewood Lumber, its employees and its business partners, which will be fueled by organic and acquisitionrelated growth.” Stockman, who previously worked with BIP operating advisor Lonnie Schield at Terry Lumber and Stock Building Supply, becomes president and CEO of Homewood Holdings. Homewood Holdings is now actively seeking to partner with and/or acquire other strong independent pro dealer organizations in California and the Pacific Northwest. Earlier BIP partnerships included U.S. LBM Holdings, Kodiak Building Partners, Rugby Architectural Building Products, United Cabinet Holdings, and Building Industry Advisors.
- ear-Old San oa uin umber alls It Quits
San Joaquin Lumber Co., Stockton, Ca., is closing after 105 years, after agreeing to lease its 5.3acre property to a pallet company looking to expand. The lumberyard began a liquidation sale April 28 to clear out its $1 million worth of lumber and hardware inventory. General manager Jeff French expects the clearance sale to last about eight weeks.
eno Gets Truss/ umberyard
Erickson Construction, Chandler, Az., held a groundbreaking ceremony April 5 for its new 11-acre High Desert Truss and Lumberyard in Reno, Nv. A division of Atlas Holdings, Erickson had been serving northern Nevada from its facilities in Chandler and Roseville, Ca. It expects the new facility to be fully operational within the next three months. The new lumberyard will allow Erickson to more effectively use its drivers and to better serve the growing Reno and Sacramento markets. It will employ up to 60 people locally between two shifts and approximately another hundred in the field.
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Building-Products.com
arm Springs Shutters Sawmill
Warm Springs Forest Products Industries has permanently closed its Warm Springs, Or., sawmill and will liquidate its assets under a bankruptcy court-appointed receiver. The mill’s owner, the Confederated Tribes of Warm Springs, purchased the facility 50 years ago, but has in recent years found it increasingly unprofitable. It is expected to lose more than $10 million just this year, due to an insufficient log supply, a changing economy, and the facility’s age and orientation for large logs. The mill closed in late March due to inhospitable logging roads, with hopes of reopening within 60 days. But after being unable to secure a $1 million loan, the tribes opted to make the closure permanent. For the long term, the tribes will continue logging timber on the Warm Springs Indian Reservation, but will now market it to third parties at market value.
osboro
eighs Possible Sale
Rosboro, Springfield, Or., is exploring the possibility of placing the glulam manufacturer up for sale. The board of directors determined it would be “prudent to undertake a review of strategic alternatives to maximize shareholder value,” considering the strong current market for mergers and acquistions, the 75-year-old company’s strong financial position, and the fact that while it is privately owned, its 60-some owner-families are spread out throughout the country. The company has hired Goldman Sachs as a financial adviser and attorney Stoel Rives for the exploratory process. Rosboro owns seven wood products facilities and about 100,000 acres of timberland in Oregon.
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May 2016
SUPPLIER Briefs Viking Lumber Mill , Prince of Wales Island, Ak., warned that it may shut down next year due to insufficient log supply, despite procuring a recent timber sale. Canfor Corp., Vancouver, B.C., has completed its acquisition of the assets of WynnWood producer Wynndel Box & Lumber Ltd., Wynndel, B.C. MiTek Industries , Chesterfield, Mo., was named Vendor of the Year by 146-unit Carter Lumber, Kent, Oh. Boral unveiled a 27,000-sq. ft. Innovation Factory in San Antonio, Tx. DuraLife launched a new Your Choice Program, an online deck design tool for homeowners. Deckorators has introduced a new online training platform for Deckorators Certified Pro contractors. Armadillo Deck launched a new 3% quarterly
builder’s rebate program.
Friedman’s Home Improvement, Petaluma, Ca., celebrated its 70th anniversary April 9-10 with celebrations at each of the chain’s four stores. 84 Lumber was named to Forbes’ 2016 list of “America’s 250 Best Mid-Size Employers.”
Building-Products.com
INDUSTRY Trends Millwork
Kitchen, bath remodels stack up cabinetry sales
U
.S. DEMAND FOR cabinets is predicted to climb 6.4% per year to $17.3 billion in 2019, spurred by continuing consumer interest in kitchen and bathroom renovation projects, reports the Freedonia Group. Even though residential improvement and repair activity has been subdued since the 2007-2009 recession, kitchen renovations and bathroom additions held up better than many other projects, as homeowners tried to improve their homes appearance and to boost property values. Demand will be spurred by improving economic conditions and by the popularity of value-added cabinet amenities, such as pull-out shelving, storage racks, and integrated lighting.
Kitchen cabinets on top
Kitchen cabinets account for the vast majority of demand and will continue to do so going forward, spurred
by growth in residential building construction expenditures and continuing consumer interest in the use of cabinets for storage. Advances will also be supported by consumer interest in cabinets that are more aesthetically pleasing or enhance convenience. Semi-custom and custom cabinets that feature intricate carvings will be specified by those looking to beautify their homes, while busy cooks will opt for deeper cabinets that provide more storage space, and are equipped with easy-to-open doors and readily accessible shelving and storage racks. Demand for bathroom cabinets is forecast to grow nearly as fast as kitchen cabinets, driven by the ongoing trend toward more bathrooms per home. Also, more homeowners will add bathrooms as part of renovation projects. Smaller bathrooms will likely include a medicine chest for personal items, while larger bathrooms can fea-
ture one or more vanities to provide more storage. Demand for other cabinets will rise as consumers look for aesthetically pleasing alternatives to shelves and racks in their bathrooms.
Nonresidential market to generate sizable demand
Though the residential market accounts for the largest share of sales, nonresidential construction also generates sizable demand for cabinetry. In structures where aesthetics are a key design consideration—such as hotels and senior living facilities—cabinets can be used to improve the interior appearance of a building. In pharmacies, laboratories, retail sites, and offices, cabinets provide secure storage for medications and other highvalue merchandise. Nonresidential demand for cabinets will be fueled by increases in office and commercial and institutional construction.
INCREASING demand for millwork and cabinetry is in evidence at Northeast Building Supply’s kitchen design showrooms in Connecticut.
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May 2016
Building-Products.com
ip-O Adds Glulam Plant
Zip-O-Log Mills, Eugene, Or., has installed a long-length glulam manufacturing facility at its nearby Pennington Crossarm Co. division. Called Zip-O-Laminators, the new operation consumes about half of the Pennington building. It has the capacity to produce glulam beams up to 115 ft. long, 6 ft. tall, and 16 inches wide. KayCee Hallstrom is in charge of sales and quality control at the glulam plant, working closely with plant superintendent Mike Kinkade, exAmerican Laminators. Kinkade oversaw the building of the plant and heads day-to-day operations of the 35-person crew. In planning the expansion, Zip-OLog Mills had considered getting into cross laminated timbers, but opted for glulams instead, to serve alreadyestablished markets.
ast Bay Siblings Pare Back ardware oldings
The Eames family is preparing to shutter two of their three hardware stores in California’s East Bay area. Peter Eames, who launched Eames Hardware & Supply, Pleasant Hill,
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The Merchant Magazine
Ca., in 1999, is currently liquidating his 6,500-sq. ft. store, so he can retire. He needs to be out of the building by June 30. In July, his two older brothers, Robert and Patrick, will begin liquidating Ace Hardware, Richmond, Ca., and join him in retirement. Their younger brother, Paul, and sister, Barbara, will continue operating Ellis Ace Hardware, Oakland, Ca., the original location, which their father purchased in 1954.
ashington Ace
losing
Online shopping and big box stores were not an advantage for owner Mark Wenner and Browns Point Ace Hardware, Browns Point, Wa. After 25 years of service, the store will be closing its doors by the end of May. Wenner noted that business had slowed down, while the cost to keep the store afloat has gone up and because of that, they weren’t hitting their numbers.
OS
panding Beyond
est
This fall, Orchard Supply Hardware, San Jose, Ca., will open its first stores outside of the west, with three branches in South Florida.
May 2016
An approximately 36,000-sq. ft. location in Deerfield Beach will be followed by openings in Fort Lauderdale and Coral Springs. Parent company Lowe’s expects to grow its smaller-store chain from 76 in California and Oregon to 85 locations by the end of the year. Other OSHes will open later this year in Las Mesa, Mission Viejo, Rolling Hills, Culver City, San Carlos, and Tustin, Ca., and next year in Hollywood, Ca., and Portland/ Belmont, Or.
eyco Adopts onservation Plan on Northwest ands
Weyerhaeuser Co., Federal Way, Wa., will commit up to 3 million acres of private timberland in Washington and Oregon to support a variety of conservation efforts focused on reintroducing the North American Fisher throughout the West. The Fisher is one of the larger members of the weasel family and is found only in North America’s boreal and temperate forests. Fisher populations in Washington and Oregon were reduced dramatically in the 1800s and early 1900s through trapping, and predator and pest control.
Building-Products.com
Distributed by
Windsor, CA
707-687-5677 weston@decksupplywarehouse.com
www.decksupplywarehouse.com
INDUSTRY Trends By David Gordon and Allen Ray
16 distribution industry trends for 2016
Photo by Cedar Creek
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undergoes macro-economic gyrations within the world economy, distributors and manufacturers need to focus on issues within their control and address what they can—and will—do to differentiate themselves, take market share to outperform on the top line, and, perhaps most importantly, ensure a healthy bottom line. Much has been spent by some on eCommerce and more will be spent in 2016 with costs declining and industry focused resources gaining increased visibility. The distributors who, once launched, invest in strategies to adopt customers will attain customer preference. While you want your site to generate sales, it must function as a “why you,” to provide content to generate demand, and to act as an eBranch/ alternative order entry system. eBusiness, defined as beyond your e-store, will take on greater promiHILE THE ECONOMY
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nence, require more investment and generate new management challenges for manufacturers and distributors. And don’t forget about connecting direct to customer purchasing/estimating systems through punch-outs, marketplaces and integrating with contractor estimating systems. Issues such as CRM, content marketing, content syndication, virtual showrooms/branches/vignettes, microsites, local advertising, BIM, SEO and more will require focused personnel with an unclear ROI. Is it an added cost? An enhanced revenue stream? Perhaps a future revenue stream? A customer expectation? Or a retention tool? Do more with less. More will, and has been, requested of distributors but with material pricing (due to commodities, competition, lack of inflation, etc.) keeping material costs down, and operating costs continuing to rise,
May 2016
distributors need to use technology and process improvement initiatives to continue to drive down operational costs to maintain net profit levels. Distributor information collection must and will improve. Distributors need to know more about their customers, their customers’ customers, the types of projects they do, key contacts, what they sell, and what customer challenges are so they can more effectively promote the right information to the right people and provide better service. Data matters— and it’s not just sales data or product data. What your customer doesn’t use also matters, because it identifies sales opportunities. Voice of XXX as a stakeholder is important. If you are a manufacturer, this means your reps/sales organization, distributors, their branch managers and/or salespeople and end-customers. For distributors, it’s your salespeople, your reps, key factory personnel, and your customers. All impact your profitability and the key to success is capturing their share of mind. They can help answer the question “why you?” Live your brand. To customers, aside from some product lines and perhaps selected individuals with specific expertise, distributors can sound like a commodity. Everyone has good service. Everyone has good people. Everyone sells quality products. Everyone says they carry inventory. Everyone says they can deliver. Everyone says…. So what’s the difference? You need to live your brand as well as be able to measure your performance—at the customer level. Want improvement? Invest in a metric management culture. Reviewing data and crafting metrics provides insights to drive direction and engenBuilding-Products.com
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The Merchant Magazine
der accountability. If you don’t commit to objectives, then qualitative criteria can be perceived as favoritism or enabling mediocrity, which lowers morale and overall performance. Acquisitions will continue but the “core” has been taken out of the middle. Those who were considering selling have sold. Those who haven’t, have typically been approached and either desire to keep their businesses and grow it (but could still sell if the price was right) or are not of interest. There will be acquisitions, albeit fillins/bolt-ons. There are few markets where nationals seek to fill-in holes. As uncertainty in the market place increases, decision making slows because many managers and owners/ CEO’s have aged (some say lost interest) in the business or they are comfortable where they are. Inertia is a powerful competitor. Rebirth/resurgence of private labeling. Throughout 2007 we wrote about the emergence of private labeling in the industry as a way to reduce acquisition cost and increase margins. It’s coming back. The use of unlabeled and private labeled products from contract manufacturers grows. Is this a rush to the bottom of the market place? Or is it a time to improve profit and weight the risk vs. reward. The aggressiveness of some companies leaves others in their wake as bid price ma;rgins increase. Or will more companies consider Tier 2/3 suppliers and sacrifice brand cache? Distributors that use their own number schema open their purchasing up to broader horizons—essentially most items are generics. As well, some distributors use “scrambled” SKUs online to inhibit product price comparisons. This is prevalent in the retail lighting industry. But if you use non-labeled, current carrying product, protect yourself against potential product liability. Synchronized data increases faster SPA claim backs. There are now reported distributors that claim within seven days of sale to be credited back the morning of the seventh. And there are more operational, productivity, pricing and profitability benefits with synchronized data. Money Ball results for distributors: Product data synchronization, combined with predictive analytics can grow top line revenue and bottom line results. While there are tools for medium to large distributors, companies like Insight Analytics are targetMay 2016
ing the <$30 million distributor with a SaaS/outsource model. Larger distributors are using analytics through tools like Phocas, Tableau, Microsoft BI, Zilliant and others. Some CRM systems like Sales Management Plus, Tour de Force, and Microsoft CRM also integrate sales analysis and some marketing automation tools that can pay results when used well by salespeople, sales management, marketing, pricing and purchasing. The increased insight can pay dividends. If you’ve enhanced your back office productivity using your computer ERP system, you also have an opportunity to increase your bottom line and strengthen processes for future benefits. The patchwork economy continues. Some areas soft, others not. We’re seeing that metropolitan markets are having accelerated growth which progressively slows the further one reaches into rural areas. Resource allocation initiatives should be considered to maximize opportunities. Those who take share will be ones that can execute—out-sell, out-service, out-think—while optimizing processes and managing costs. Proving you’re the best is different than hoping your customers experience it. Specific “basic” initiatives can win the game if you’re willing to invest and are thinking beyond the 2016 horizon. Segmentation & Stratification: The one-size-fits-all sales and marketing approach is no longer sufficient to profitably grow. Horizontal efforts ensure you rise and fall with the tide. Marketing by customer segments; stratifying customers, suppliers and possibly SKUs by profitability; and promoting value proposition by segment will ensure profitable revenue and market share growth. Brands matter, but only if your brand is real. Distributors who invest in their brand by delivering on their promise will take share. Manufacturers who communicate their points of differentiation will take share. Those who wait for others to support them may survive based upon cash flow initiatives but with significantly less profitability. Success will take determination and commitment. The devil is in the details. – David Gordon is president of Channel Marketing Group (dgordon@ channelmkt.com) and Allen Ray is president of Allen Ray Associates (allen@allenray.com). Building-Products.com
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ealers
ant Say Over Softwood
With the expiration of the U.S.Canada Softwood Lumber Agreement last fall, the National Association of Home Builders has formed a coalition with the National Lumber & Building Material Dealers Association and the National Retail Federation to push for dealers’, builders’ and consumers’ interests in the negotations for a new trade deal. The American Alliance of Lumber Consumers (AALC) says it supports “free trade in lumber and building materials” and is committed to providing American consumers access to a stable, dependable and affordable LBM supply. AALC believes restrictive trade agreements that impose, quotas, tariffs and other border tax measures have the potential to create large and unpredictable swings in the cost and supply of materials, thereby harming housing affordability. Over the last three years, Canadian imports have comprised 28% of the U.S. market. Currently, the U.S. and Canada are engaged in a “cooling off” period until Oct. 12, 2016, during which no trade disputes can be filed by either country
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The Merchant Magazine
A new app from Trex makes it easy for homeowners, builders and dealers to design dream decks. It allows users to explore numerous decking and railing options and standard or custom deck designs. They can select materials, colors and options to complement the decking and create a detailed material list specific to the design. Favorite designs can be saved for easy sharing and emailing. – Download from iTunes App Store
May 2016
eal
regarding softwood lumber imports. The two nations have agreed to submit a report within the next 100 days looking at all options for a long-term agreement. As the U.S. government formulates its trade policies, AALC believes it should allow home builders, other downstream industries, and consumers to participate in the process and acknowledge the important role that they play in the U.S. economy.
yoming Sawmill to
estart
Saratoga Forest Management expects to restart its Saratoga, Wy., sawmill by the second week of May and its planer two weeks later. In January, the mill was damaged by fire. Company officials forecast it could be back up to normal capacity before July 4.
orest Market Goes Global
Forest2Market is undergoing a corporate rebranding that includes revising its visual identity to more directly reflect the company’s expansion internationally. The Charlotte, N.C.-based pricing data provider began operating in the southern U.S. in 2000 and now also serves the western, eastern and Great Lakes regions of the U.S. and Canada. Expansion plans include other timberrich regions of the world, including Brazil, Uruguay, Russia, Scandinavia and the Baltic States in 2016, and Chile and Australasia in 2017. Forest2Market will supplement its region-specific benchmarks with a series of international benchmarks that allow all exporters to a specific region to understand their global cost competitiveness, permitting customers to maximize revenues when pricing their products for that particular market. “The rebranding reflects Forest2Market’s evolution from a company that focused specifically on timberland owners and wood-consuming manufacturers in U.S. markets to one that serves forest and other bio-based products companies worldwide,” said SuzAnne Kinney, director of marketing & communications. “The new logo—the iconic representation of a tree and the globe—reflects our evolution as a company and our direction for the future.” Forest2Market serves the wood, lumber, paper, bioenergy and biochemicals supply chains. Building-Products.com
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Randall Henrichs, ex-Sherwood Lumber, is now sales mgr. at PrimeSource Building Products, Tualatin, Or. Judy Haynie is now inside sales mgr. with OrePac Building Products, Ontario, Ca. Kate Wyeth, ex-BlueLinx, is new to Louisiana-Pacific Corp., as market development mgr. for Colorado and Wyoming. Jeremy Heimer, ex-Wausau Supply Co., has been appointed product mgr. at Boise Cascade, Billings, Mt. Mike Benito, ex-Hardwood Industries, is a new national sales rep with Arrow Forest LLC, Beaverton, Or. Jim Conrad has retired after 22 years as Los Angeles, Ca., territory mgr. for Sierra Pacific Windows. Seth Ramirez, ex-Tractor Supply, is the new yard operations mgr. at Foxworth-Galbraith Lumber Co., Prescott, Az.
Jim Kilberg has been promoted to senior VP-real estate, energy & natural resources for Weyerhaeuser Co., Federal Way, Wa. He replaces Tom Lindquist, who has left to pursue new business ventures. Travis Beebe is new to Trimco Millwork, Rexburg, Id., as outside sales rep for east Idaho. Wesley Newmyer, ex-Bridgewell Resources, is now senior estimator for Matheus Lumber Co., Lake Oswego, Or. Clay Goodrich is the new western region technical sales rep for Smart Vent Products, serving Oregon, Washington, California, Nevada and Hawaii from Seattle, Wa. Martin Boyd, ex-Cascade Corp., has joined Hyster-Yale Group, as a Portland, Or.-based VP. Barr Nunn is the new HR director for Mungus-Fungus Forest Products, Climax, Nv., according to owners Hugh Mungus and Freddy Fungus.
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OUT OF THIS WORLD: Construction connector manufacturer Beck Fastener Group was tasked by RUAG Space GmbH of Austria with developing a unique new staple that could be used to secure multi-layered insulation to space satellites. Beck created a special alloy for the space environment, fabricated in special clean rooms at RUAG, so their Space Staples would be completely free of grease. The staples affix Velcostyle hook-and-loop fastening material to the characteristic silver and gold multi-layered insulation blankets. May 2016
Building-Products.com
ire Slows
eyco
P Plant
Authorities have deemed a late Saturday night fire April 9 at Weyerhaeuser’s engineered wood products plant in Eugene, Or., as “accidental.” Evidently, the fire started between two machines inside one of the mill’s buildings. It took 30 firefighters about 20 minutes to extinguish. The plant suffered only minor damage and restarted two days later. No injuries were reported, although a number of employees were evacuated.
eld- en aunches Triple Training Program
This spring, Jeld-Wen hits the road to launch the first of three training programs for builders, remodelers, architects and dealers. Known as JeldWen University, it is casting a wide net to reach industry professionals at the right time, in the right place. “Given the current market conditions, we saw a need to provide our partners with the tools and know-how necessary to select and install windows and doors,” said Jim Parello, vice president of marketing. “JeldWen University’s three-pronged approach to training speaks to the company’s commitment to delivering a premier customer experience.” The programs include: • Mobile Showrooms: Starting in April, four trucks started hauling mobile showrooms to visit LBM dealers and retail centers around the country to showcase products. This format is intended to offer a quick, convenient training experience in their community. • Regional Learning Centers: JeldWen recently opened its first regional learning center in Rantoul, Il. In total, the company will create four learning centers with several more coming soon to service regional demand. The learning centers will provide deepdive training into product features and benefits, installation techniques and how to specify the right product for the right application. • E-learning Courses: Later in the year, Jeld-Wen will launch an online learning management system for ondemand training. The e-learning courses will be tailored to all skill levels—from basic introductions of windows and doors to advanced technical courses on product performance and industry regulations.
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FAMILY Business By Kent Rhodes and Wendy Sage-Hayward
The status effect: T
ow ego plays out in family firms
HE FAMILY - OWNED BUSINESS
is a common structure found around the world that provides successful commerce and wealth for those communities in which they live and work but also presents an additional level of complexity for the family to manage. Some handle the challenge of integrating family and business well, while others become undone by chronic conflicts. While there are many different factors that contribute to any given family business conflict, we find that helping families better understand the sources of tension in both their family and work systems can give them more choices to better manage those tensions. With that in mind, we want to explore some insights from the world of neuroscience that speak to â&#x20AC;&#x153;drivers of the brainâ&#x20AC;? that likely play a role in both successful and less successful family business dynamics.
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Recent research based in the neuroscience of how the brain works has clearly shown that humans have the ability to change how they think and behave in ways that, in turn, change the brain itself. “We can use our mind to change our brain, develop our mindset and create new options for thinking, performing and relating,” wrote Egan and Lahl in 2012. This is important evidence about our capacity to change. Although research in the neurosciences has not specifically been applied to the world of family business, the broad findings of these studies may help enterprising families better understand their business complexities, while offering some solutions for addressing the conflicts so commonly experienced. One of the interesting discoveries in the neurosciences is that our brain has five key drivers or needs that include status, autonomy, certainty, fairness and relatedness. David Rock, author of our Brain At Work, suggests that these are the guiding principles for our brain. While each of these drivers has implications for family businesses, the first of these key drivers—status—may provide insight into how some family firms work and what can drive some conflicts in them. According to Rock, status refers to the rank or position an individual holds in the social groups to which she or he belongs. People who hold higher status positions within the various social groups in which they live/work, such as a business, are shown to have better health and greater well-being, as well as live longer. Interestingly, while people naturally strive to climb the corporate ladder, a single focus to do so is often frowned upon by society. We are likely to view that kind of single focus as a selfish need to have our ego validated, sometimes at the expense of other people’s well-being. When used from this point of view, “ego” is thought of as one of the more negative parts of human behavior, labeling these individuals as egotistical, vain, selfish, narcissistic, and so on. Unfortunately, the impact of these labels is that we shut down our ability to think and speak openly about what otherwise are normal feelings and needs in ourselves, and others. As a key organizing principle of the human brain, status and its impacts on us may be even more influential in the most basic parts of our closest relationships: the family. Human beings are driven to seek status, as it is part of our biological hardwiring. While our culture may put a great premium on the individual, we are communal beings and need to feel that our place in our communities is secure and that we are respected, valued and able to make a meaningful contribution to those around us. In the context of a business-owning family, the dynamics of the family that relate to our individual status needs can quickly escalate. The overlap of family and business can lead to some conflicts that are likely associated with status needs of one or more family members. When a family member experiences a challenge to his or her status needs, the result can be defensiveness and even aggression. For example, the challenge of succession planning in the family business is often made harder by a variety of “status” concerns: • Business founders often have a high need for status and a high need for control. • The patriarch may harbor some anxiety about his loss of status in his family and/or community if he is no longer the CEO. (Continued on page 6 ) Building-Products.com
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NAWLA Special Focus By North American Wholesale Lumber Association
hy choose a career and stay in the lumber industry?
P
who work in the forestry products industry know it’s special. There’s something about it that’s just different from other industries. But it can be difficult to explain, especially to those considering, or just starting, a career here. So we interviewed a few NAWLA members—from early-career to seasoned veteran—to hear their thoughts in their own words. The responses below represent common themes you and your recruiting teams can use in conversations with prospective and newer employees to help reinforce the opportunities and value of a long tenure in the lumber industry. ROFESSIONALS LIKE YOU
CCCC
ven
ompetitors Are riendly
Why did you take a position in the industry and why have you stayed Rick kstein, president and CEO, Weston Forest Products: This is the greatest industry. Unlike a doctor, lawyer or engineer, who need years of specialized education, all you need to succeed in our industry is desire, and hard work! The barriers to entry are low, which makes it competitive, and allows great entrepreneurs to succeed. The only constant in our industry is change. Currency, transportation, government interference, environmental and alternative non-lumber products ensure change never stops. Change creates confusion, and confusion creates opportunity. Great entrepreneurs love opportunity. ow is the forestry products industry different from others kstein The people. Unlike other industries, ours is still about relationships. We are friends with our suppliers and customers, but surprisingly, our best friends seem to be our competitors. We will fight with each other for every order, but regularly share credit information, and help each other if we are late on an order. It is remarkable.
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What excites you about your ob kstein That there is no limit to growth other than desire and time. There are no geographic barriers, and there is not one global player that dominates more than one percent of the market. It is huge, and the opportunity for growth is unlimited. CCCC
very
ay Is
ifferent
ow long have you been in the industry What was your first ob Susan Fitzsimmons, vice president, Snavely Forest Products: I’m a legacy in the field. My first job was at age seven and that was putting together a mailing list. So how long have I been in the industry? Over 50 years, off and on. Q: Why did you take a position in the industry and why have you stayed Fitzsimmons: I worked for a few years for a large department store, as PR and community relations director. And then I started my own human resource development company for small industries—physicians, attorneys, small
Building-Products.com
manufacturers. One of my clients was Snavely Forest Products. And I loved it. And so I quit my own thing and went full-time at Snavely. I didn’t go to school thinking this is what I want to do. That was not my original motivation. I sort of stumbled into it. Would I do it over again? You bet. ow is the forestry lumber industry different from others Fitzsimmons: In this industry, I love the fact that all day every day is a different challenge. I can’t think of a position in the building materials industry where you do the same thing day after day, over and over again. There are terribly bright, successful people around you all day, every day. They’re always willing to help. And everything is customer-driven. You actually know who the customer is. You can learn what they’re looking for. There’s some face-to-face knowledge of the end consumer and what that person might be looking for. If you see customers over and over again, you know their spouses, their kids, where they spend their summer vacations, and it becomes meaningful. It’s rewarding.
What would you rather do? Would you rather email somebody or talk to them over the phone? Talking to someone is always so much more rewarding than sending another email. Certainly everybody in this industry emails, but they talk on the phone too. They talk face-to-face. There’s still a lot of personal communication. CCCC
ou an
ork our
ay p
ow long have you been in the industry What was your first ob Mark Brennan, program manager, U.S. Lumber: I started here as a sophomore in college, and I’m still here 15 years later. I worked full-time in the summer and part-time during the year. : Why have you stayed Brennan: The people I work with are awesome. The atmosphere is fun, not stuffy. The reason I haven’t moved on is the people and continuing to get different opportunities to do different things. My friends who work in finance or at really large companies—
they end up managing just a very small section of a business. They might focus on just one part of the business, where it seems like in the lumber industry you get exposed to the whole industry. ow is the forestry lumber industry different from others Brennan: I can walk down the hall and have a conversation with our president, which you don’t get to do in a lot of other industries. The industry is very relationship-based. It still has that very human interaction where you build relationships with people and you build trust. When I graduated, I got offered a position in accounting, and then transitioned into managing our ERP system. Then I went through management training. Now I’m a program manager and manage a lot of our big projects. So there’s an ability in the industry to work your way from one position to another. CCCC
There s So Much to earn ow long have you been in the industry What was your first ob Kalyana Crooks, domestic and international account coordinator, Patrick Lumber Co.: I started here right after I graduated college, and have been in the industry for just about five years. I started as a frontdesk receptionist, then I worked my way up from there, to helping out with export administration and accounting. I’ve handled export and domestic sales support for about three years now, which includes logistics, handling inventory and facilitating orders. Currently, I’m continuing sales support while transitioning into a sales position within the next year. ow would you describe the industry to someone who’s never worked in it before Crooks: When I told my friends I work for a lumber company, a lot of them were like, “She’s at a sawmill or chopping down trees.” It’s a very oldschool, rugged perception of the industry, but there’s actually a lot of push toward innovation with technology and being on the cutting edge, especially with architectural design. It’s fun to see product I’ve shipped turn into a beautiful building in Japan, for example.
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What excites you about your ob Crooks: What excites me about the job is the ability to learn more about building materials and the industry in general. It’s such a large part of our society as a whole as far as wood goes into everything, and learning about how that can be sustainable and how technology is constantly innovating to make it better. There’s a lot more that goes into the industry than cutting down a log and trying to sell it to somebody. ow is the forestry lumber industry different from others Crooks: It has been interesting for me to learn more about the company—how the wholesale business works as far as the accounting side goes and how you go out every day and sell lumber. The relationship aspect of the industry I really appreciate and enjoy. It’s all about what can I do to keep customers for the longterm? It has been fun to learn the industry as I go along and to take on more responsibilities. And also, I really enjoy all of my coworkers. We have a good environment.
I’ve been a workaholic all my life. Other than playing golf and running, all I do is work. So I was lost, and in 2010, after connecting with Charlesbank Capital Partners, a private equity firm, we bought Cedar Creek, which is now the fourth-largest distributor in the United States in building products. When we bought the company in 2010, it had eight locations. Today it has 26 locations and does well over a $1 billion in business a year. In March 2015, I retired as CEO, but I remain as the chairman of the board. So I’m still working.
: ow is the forestry products industry different from others Adams: I never for a minute thought about leaving the industry. All my experiences were good ones. The people are wonderful. Our industry is more laid-back, where the approach to the marketplace is more orderly. This is a vibrant, growth-oriented industry where you have all these different ways to improve yourself and help yourself grow. Our future is tied to that big forest you see out there. Look at all that wood. Look at all those trees. All of that that is going to be a source of income for the next generation.
CCCC
The uture Is Bright : How long have you been in the industry? What was your first job? Bill Adams, chairman of the board, Cedar Creek: I started in 1968 as a salesman for Masonite in Albany, N.Y. I saw an ad in the Sunday paper for selling building products to lumberyards and distributors, just like we do now. I didn’t know anything about the building products business. There were associations I joined to help me learn and get up to speed. : Why did you take a position in the industry and why have you stayed Adams: I’ve had jobs in California, Illinois, Michigan, North Carolina, Tennessee, Pennsylvania and Texas. I took on kind of a nomadic attitude about life. I was going to do whatever it took to be successful, and back then, that meant moving. If you wanted to get promoted, you go somewhere else. You didn’t have the Internet. You couldn’t work from home. You had to be in an office. You had to be in front of people. So that dictated my behavior. And in addition to that, I just love working. In 2008, I decided to retire, and it was a big mistake. I was 67 years old. Building-Products.com
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NAWLA Special Focus By Bob Berg and Jennifer Coskren, RISI
ousing market: Boom bust crisis
T
HE U.S. HOUSING market has been on a wild and protracted ride. Government policy and financial hubris in the middle of the last decade drove housing production to levels well above what fundamental demand levels would dictate and the market became over-bought (households financially ill-prepared to own a home were pulled into the market) and overbuilt (speculative). The Great Recession that began in 2009 brought the housing market crashing to well below underlying demand. In the aftermath of the collapse in the housing market, tight financing, a purged inventory of building lots and the relocation of labor constrained shelter production at levels well below those required to meet the recovering housing demand. Initially, this imbalance was masked by the large inventory of vacant units that resulted from the housing crash. At this point, however, the excess vacant units have been worked off (the inventory correction has been com-
pleted) and recovering demand is driving up home prices and rents as a result of the muted recovery in shelter production. It is easy to dismiss the recent escalation in shelter prices as another “bubble.” After all, the recent escalation in home prices and rents has pushed them up to, and in many cases above, levels that we experienced at the height of the boom years of the last decade. But the escalation in prices is the only thing these two cycles share. In fact, the factors leading to higher prices in these two “boom” periods were completely different and the ultimate market correction will be different. In understanding the differences between the housing market in the last decade and the current market, it is important to understand that the key drivers for shelter demand and supply are underlying population growth and demographics, and that these factors are not impacted by economic cycles in the short run. As a result, cyclical
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swings in household formations are anchored by the underlying growth trends. Through the cycles, housing demand and production will cycle around the underlying trend dictated by demographics. Currently, population growth will require an average of 1.13 million units per year between 2014 and 2020 and demand for second homes and housing stock replacement will require another 0.34 million units per year (Table 1). This puts trend housing demand at around 1.47 million per year. In the housing boom of the last decade, housing production outpaced the demand for housing and, ultimately, household formations collapsed as demand was exhausted and job losses mounted. There were no more marginal homebuyers to tap into and speculators were frozen by the buildup of vacant inventory and falling home prices. Housing demand could not be sustained at levels well above underlying demand. The correction for this imbalance was quick and brutal, as demand and prices plummeted. We are currently at the other extreme in the market where housing production has been running well below fundamental demand levels. Over the period 2009-2015, household formations averaged 0.848 million per year, while net additions to housing stock averaged just 0.577 million per year for a 0.271 million average shortfall in supply over the six-year period. Initially, this shortfall was masked by the large number of vacant shelter units on the market. In 2009, there
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were around 1.5 million vacant homes for sale and rent and banks repossessed nearly 1.0 million homes through foreclosure, according to RealtyTrac. However, the modest level of household formations in recent years worked through the inventory of vacant shelter, and by the middle of 2014 the total shelter occupancy rate had returned to pre-recession levels and apartment vacancy rates dropped to historical lows
(Figures 1 and ). In the last decade, demand and production levels in excess of underlying fundamental demand led to a pool of vacant shelter which had to be cleared before the market corrected. During the recession, households failed to form mostly due to virtually nonexistent job growth as U.S. payrolls were slashed. And even as the recovering in the overall economy took hold, house-
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holds continued to lag behind underlying demographics for reasons ranging from the prohibitive cost of shelter to high student debt. Those individuals that would have formed households have not gone away and they add to the pool of individuals that would form households under improved conditions (pent-up demand). Household formations did surge to levels above underlying demand and the pool of pent-up demand was drawn down, but in early 2016 it still stands at over 2.0 million. Household demand would move even higher and pent-up demand lower if the supply constraints hindering the market lifted. This pool of demand will only grow as long as production falls short of underlying demand. In previous cycles (pre-2000), housing production quickly rebounded to levels in line with or above demand and the pool of pent-up demand built up during the downturn was quickly worked off. The recovery in housing in the current cycle has been constrained by the destruction of the physical (available land and labor) and financial supply chain. So, it was much easier to stop building in the last cycle to allow for the market to correct than it has been to restart shelter production to rebalance shelter demand and supply. Resolution to the current housing crisis or supply shortfall will come from both market forces and public policy. Market forces are initiated through higher prices and increased
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investment. Higher prices will slow household formations as marginal entrants into the shelter market are forced to postpone their plans. Local escalation in prices should redirect corporate and small business growth plans to areas with more affordable housing (think San Francisco, New York City, and Boston shifting to Austin and Cleveland). On the supply side, higher prices will help stimulate investment in shelter. Shelter production doubled between 2009 and 2015 with multifamily housing accounting for nearly 50% of the growth as access to mortgage financing limited entry to the single-family market. On the face of it, this is a solid recovery; however, current levels of housing production are nearly 20% below the levels required to meet fundamental demographic demand. Housing production needs to reach close to 1.5 million units just to meet underlying demand over the next few years, and this level does not allow for any reduction in pent-up demand. However, the extreme and prolonged downturn in housing has destroyed much of the supply chain in housing production. Building lots were purged from builders’ balance sheets and a large portion of the labor either left the work force or migrated to other sectors. And the housing finance supply chain (builder and buyer) has yet
to fully recover. The relatively slow pace at which the housing supply chain is being rebuilt provides the underpinnings for the current housing crisis. The other part of the solution to the current housing crisis will come from public policy. The policy prescriptions, however, have to be directed at supply and not traditional demand remedies. For instance, restrictive building codes, protracted permitting processes, and strict zoning will have to become more growth oriented. Labor retraining programs and relocation tax incentives would also help. And, of course, accommodative financing for builders. Policies directed at increasing demand or controlling prices will only aggravate the current housing market conditions. In either case, the housing market will not be back in equilibrium until production returns to levels that will allow for the elimination of pent-up demand. There is no “new reality” in housing market. Ultimately shelter production will have to return to levels that will accomplish this rebalancing, and market and policy pressures will work toward this solution. And unlike the previous boom, this correction has already and will continue to be a drawn out process.
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NAWLA Special Focus By Gail Rutkowski, National Shippers Strategic Transportation Council
Can your company be accused of driver coercion?
O
N JANUARY
29, 2016, the Federal Motor Carrier Safety Administration’s (FMCSA) driver coercion rule, known as the “Prohibiting Coercion of Commercial Motor Vehicles,” became effective. This regulation prohibits motor carriers, shippers, receivers or brokers from coercing drivers to operate motor vehicles in violation of FMCSA regulations that include hours of service, CDL regulations, drug and alcohol testing rules, and HAZ MAT regulations. The rule also prohibits anyone who operates a commercial motor vehicle in interstate commerce from coercing a driver to violate the commercial regulations. Ever since the FMCSA issued a notice of proposed rulemaking request for comments in May of 2014, there has been a lot of confusion as to how this rule would work. While the final rule clarified some of the questions, much of that confusion still exists. As John Cutler, NASSTRAC’s legal counsel, noted, “We are pleased to see that the agency dropped several of the worst features of the rule. The final rule no longer imposes on shippers, intermediaries or receivers a ‘duty to inquire’ whether drivers can comply with all safety requirements (HOS, safe tractors and trailers, working brake lights, etc.) for the services requested. In addition, the final rule drops the ‘respondent superior’ legal theory under which shippers, intermediaries and receivers might have been considered ‘employers’ of the drivers who work for the motor carriers. That theory could have caused a great deal of trouble for defendants in ‘negligent hiring’ lawsuits. These are positive developments, and the comments that NASSTRAC and others filed seem to have done some good.” While NASSTRAC, along with many industry groups endorse the intent of the rulemaking, no one defends coercing drivers to violate safety rules, FMCSA clarified in response to a NASSTRAC comment that there is nothing wrong with a shipper saying it will stop using a trucking company that sends in a driver with four hours of driving time left on the clock when the haul will require seven hours. It is legal to decide not to use a carrier that does not
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dispatch drivers who can meet the agreed upon delivery schedule. Further clarifications include: • Brokers are not allowed to directly communicate with drivers and are not employees of a motor carrier, and if a broker communicates directly with a driver, they could be held liable for vicarious liability and coercion. • The deadline to file coercion complaints will work off of a 90-day filing deadline to ensure drivers have a sufficient time to prepare and submit a coercion complaint. Unfortunately, these clarifications are not contained in the rule itself, but in the explanatory text which means shippers need to either remember what the explanatory text says or keep a copy of the Federal Register notice handy. This rule also carries stiff penalties up to $16,000 per occurrence if a shipper, receiver or intermediary makes threats to a driver. According to Cutler, “The exposure to penalties is there whether or not the driver actually violates any regulations. In addition, what does it mean for the driver to have “stated’ that the service called for could not be provided in compliance with regulations? Stated how, and to whom? A night watchman or a yard jockey? FMCSA refused to
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require documentation.” So, where do we stand now? We don’t know how the rule will be applied or who will be believed when a driver says one thing and the shipper says another. Shippers, receivers and brokers may need to consider adding no-coercion sign-offs from truck drivers to their shipment documentation. What else should shippers do? Make sure you have good procedures in place; don’t talk directly to drivers to avoid vicarious liability; and if there is an issue, work with the motor carrier. NASSTRAC will be watching how enforcement is done, particularly in resolving “he said, she said” issues. No one in the industry believes drivers should be coerced into doing anything illegal, but creating a situation where shippers or brokers get unfairly put into a situation resulting in a $16,000 fine over something they had no control over isn’t good regulation… or good business.
FMCSA (and carriers) complain about shippers and receivers who take too long to load and unload trailers. FAST Act sets parameters for study of this issue, which could bring new rules. Insurance. FAST Act provides that if FMCSA wants changes in required liability insurance, it must study impacts on safety and the trucking industry, and the insurance industry’s ability to provide more coverage Driver Training. New call for 30 hours behind the wheel for Class CDLs. Driver health, substance abuse test-
ing, broker and forwarder licensing. These changes may require changes in contracts and selection criteria. Our advice remains the same: DO NOT USE UNSAFE CARRIERS. We all need safer highways and “negligent hiring” lawsuits continue to proliferate. What are you doing to protect your company? – Gail Rutkowski is executive director of the National Shippers Strategic Transportation Council, the association for transportation and logistics professionals who manage freight across all modes. Learn more at www.nasstrac.org bdp.
While the Driver Coercion rule has been at the forefront of issues shippers are facing, here are a few other regulations that may impact your transportation operations: lectronic Logging Devices. Most paper logbooks should soon (by 12/17) give way to ELDs. Many carriers which already use them will get extra time for updates. The ELDs will automatically record engine hours, miles driven, locations, etc. They are projected to increase safety (by reducing HOS violations) and improve efficiency (by reducing paperwork and permitting better performance monitoring). Revision of DOT Ratings. The FMCSA has proposed new High Risk Motor Carrier test and new unfit safety rating to replace older Satisfactory, Conditional and Unsatisfactory. Speed Limiters. No proceeding yet, but 65 mph may be proposed. This will reduce capacity, but may be safer. Many large carriers already use limiters. Loading and Unloading Delays. Building-Products.com
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NAWLA Special Focus By Kimberley Clough, Interfor
ecruiting millennials: The why and how
I
F YOU LOOK across the industry, there is a whole group of folks with 30-plus years of experience behind them. This group has important institutional and technical knowledge, but it’s in danger of being lost. Because of the cyclical nature of our business, we haven’t emphasized the development of succession candidates to eventually fill those jobs. Once this group retires in large numbers, the industry could be in a difficult situation, where it starts battling over the talent that remains. The cost of that talent goes up if we haven’t collectively come together to develop a pipeline of up-andcoming individuals in our organizations. Let’s not find ourselves in a situation where there’s one person qualified for every two jobs in the industry. Let’s start recruiting and developing the next generation of employees to the lumber industry in a strategic way.
The Message to Millennials
I subscribe to the notion that, regardless of generation, there are certain people in life who like seeing results from the work they do every day. There are millennials who are fascinated by big machines and how they work. It matters to them that the products we create are things you can see and touch. So I think the reason why millennials would get into the lumber business is if they enjoy being part of an industry that produces a tangible output that feeds into other industries. The message to those millennials is that the lumber industry is part of a larger, stable economic platform. Although it has its cycles, it’s an industry that’s here to stay.
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eaching Out to uture Grads
Interfor does a lot of different things to attract and retain millennial employees. We understand that our long-term success will be driven by our ability to retain talent at the supervisory and operational levels. Bringing in millennials is one path to ensuring that success. To find millennials, you have to engage with universities. We do that by attending job fairs and conducting information sessions. We don’t target schools arbitrarily, however. We find schools that graduate the type of individuals who are attracted to the lifestyle associated with our industry. In other words, if we’re recruiting for engineering positions in Georgia, we don’t actively recruit at the larger technical institutions, like Georgia Tech. Those students generally don’t want to live in small towns and work in our industry. They picture themselves working in aerospace or just about any other industry before ours. We target smaller schools instead, ones with good programs that teach students to think like engineers—to be analytical and process-oriented—but who want to live in a town with 500 people because they enjoy fishing and hunting, or whatever it is that draws them to small-town living. The type of institution you focus on does matter. How you engage with an institution depends on the quality of its career center. We have an excellent relationship with the University of British Columbia, for example, mostly because they have a good career program in place. The career advisors know who we are and what we offer as an employer. Many of their graduates have come to work with us, either in forestry or the manufacturing side, so the student body knows who we are. They know every year
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we’re going to hire a certain number of co-ops, and they can provide information on what it’s like to work at Interfor. In this scenario, your employees are the best at selling your company to future graduates. We’ve also engaged with students by making presentations in classes and by offering ourselves as the topic of classroom projects. If they do express interest or eventually become a co-op participant, we make sure to connect with them on LinkedIn and keep in touch.
Make Mutually Beneficial
elationships
When we bring interns or new graduates into the business, they’re not left to fend for themselves. During the recruiting stage, that’s what new graduates or millennials often want to hear. The idea is that they’re meant to keep developing and learning and that there’s a plan for their development. We really focus on the fact that we have a plan. If the employee has an engineering degree, we really understand what that person has to learn about our industry in order to really add value. Millennials in particular need to hear that they won’t just be handed off to a manager and hope that they learn something in the process. Millennials don’t have a track record of staying with companies long after they graduate, but I find the biggest motivator is an acknowledged plan to continue developing employees. They’re more likely to stay because they see the opportunity to progress their career in meaningful ways. – imberley Clough is manager of recruitment-North America for Interfor, Vancouver, B.C.
Building-Products.com
Start Building a Pipeline There is no “build it and they will come” when it comes to hiring millennials. Companies that want the best employees have to go find them. Here’s a quick guide to building a pipeline. Dedicate someone in your organization For some companies, recruitment is a priority. For others, an afterthought. The difference is often whether an employee is dedicated to it or not. ngage with universities Find universities with programs that relate to your needs, whether it’s engineering, accounting and so on. Then call or email the career services staff at those programs and set up a meeting. (Their information is usually listed on the school’s website.) The more they know about you, the more they can sell your company to the best students. Connect on LinkedIn Build your network with those career services staff, interns, former employees and anyone else who could lead you to your next hire. Keep in touch with the occasional message, but don’t inundate them. Get mployees Involved Your employees should be your best promoter. Ask for help connecting with the next generation, by contacting their alma maters on your behalf, speaking with potential recruits or even a formal referral program.
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NAWLA Special Focus NAWLA Educational Opportunities
Train and retain your top performers with A As educational courses
U
NDERSTANDABLY, AS AN employee’s tenure increases, so does the value he or she drives for your organization through productivity gains, improved work accuracy and positive impact on company culture. Josh Bersin, principal and founder of Bersin by Deloitte, describes employees as an “appreciating asset” for this reason. While it may seem counterintuitive to think of a staff team as a line item on a balance sheet, it is an important reminder about the impact of employee turnover and the costs associated with losing star players. As the economy continues to recover and new opportunities become available in the local job market, managers should focus more time and resources on employee retention. Starting with an understanding of the conditions that drive employee satisfaction or lead to turnover can help industry firms identify the best solutions. According to a 2014 survey by the Society for Human Resource Management about job satisfaction, respectful treatment of employees on all levels, trust between employees and senior management, benefits, compensation and pay, and job security were the top-rated aspects overall. While many of those, along with a company’s ability to address them, will vary by company and management team, there are some universal needs that a manager can look to outside resources to support. These include other areas of high importance (as rated by employees in the same survey) but also relatively low current satisfaction, such as job-specific training, an organization’s commitment to professional development, contribution of work to an organization’s business goals, company-paid general training. The North American Wholesale Lumber Association provides several in-depth training courses that can be used to both increase employee satisfaction and improve individual and company performance. These courses are tailored to lumber industry professionals and suited for professionals at different stages of their careers.
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WOOD BASICS course brings industry professionals into the field, to supplement classwork instruction.
ood Basics
Through a blend of classroom training, field experience, and university resources, Wood Basics Course provides a comprehensive introduction to the forest products industry. In the words of spring 2016 Wood Basics attendee Lauren Chimko, lumber trader at Dakeryn Industries, the course covers “a variety of topics surrounding the life of a piece of lumber; from a wee little seedling in a forest to a structural component in a home. Key subjects: forest operations, sawmill production, transportation, and sales/negotiations.” “Seeing the forest thinning and the mill was really helpful in understanding the steps it takes to turn a tree into the materials we sell at our distribution locations,” added
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ADVANCED selling and negotiation skills are the focus of two-day Wood Masters classes.
classmate Shea Stone of U.S. Lumber Group. “Being in sales, I think the negotiation session is what I will use most in my future in the industry. It will really help keep me on my toes when trying to deal with customers.” This four-day immersion course is intended for employees who are new to the industry and ideal for those seeking to understand how their work contributes to their company’s goals and the overall success of the industry. Traditionally, Wood Basics is offered twice annually, with a spring course at Mississippi State University and a
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fall course at Oregon State University (OSU). Due to the popularity of this course in recent years, a third course was added for 2016 at OSU this summer. Registration for both the summer course, July 25-28, and the fall course, Sept. 19-22, is now available, and enrollment is limited. Learn more at nawla.org.
ood Masters
Prior to its 2015 Traders Market, NAWLA hosted its first Wood Masters course for more than 30 branch and division managers, sales and business development professionals, and supply chain and operations professionals with more than four years of experience. Through case studies, presentations and panel discussions, the sold-out course helped participants build their selling, negotiation and communication skills. Of his experience, Philip Herman, Allweather Wood, said, “Negotiation is a skill like any other that needs to be practiced to become proficient. I think this is a great area to review. I will certainly apply the information in my daily work.” “All areas were beneficial,” agreed Dean Hartnell of Sherwood Lumber Co. “(Wood Masters) helped me identify the different types of customers and how to ask better questions.” This popular class returns Oct. 24-26, 2016, in conjunction with the 2016 Traders Market in Las Vegas at The Mirage. The agenda for this two-day course will focus on advanced selling and negotiation skills to instruct attendees about enhancing assertive communication, identifying and eliminating flaws in their negotiation profiles, and increasing the efficiency of their prospecting and time management efforts. Sessions will focus on the nuances of conducting business in the lumber industry, from developing a prospecting guide to sharpening phone and email communications. Wood Masters will also feature panel discussions with lumber executives and industry experts. With job-specific training in areas that directly contribute to the organization’s bottom line, your more experienced professionals will appreciate the opportunity to hone their skills alongside peers at Wood Masters. Because this unique training takes place immediately Building-Products.com
before Traders Market, NAWLA encourages sales professionals, traders, and other lumber professionals with three or more years of experience to attend this course to maximize their development opportunities. Forest industry professionals can register now through the NAWLA website, www.nawla.org.
ecutive Management Institute
MI
Training the next generation of your business’ leadership showcases your company’s commitment to professional development at all levels while helping to solidify a company’s succession plans and develop essential skills. For those experienced managers, NAWLA offers Executive Management Institute (EMI), which will take place Sept. 19-22, 2016, at OSU alongside Wood Basics. Participants of this four-day course will learn about their role as an executive and how to manage legal issues, customers, inventory, sales and marketing. In an effort to showcase the real-world applicability of this course, each participant is encouraged to bring key issues and first-hand experiences to discuss throughout the course. Past EMI attendee Dan Semsak of Pacific Woodtech Corp. said, “The financial training will help me to better prepare for Board meeting discussions and financial analysis of investments in operations. I will also be working toward better supply chain management. Those areas were most helpful.” Industry experts and experienced instructors will be on hand, guiding participants through courses that detail every aspect of running a successful company—from establishing
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the right company culture and philosophy and practice of leadership, to contract and HR law, EMI covers everything a manager would need to know to keep a business thriving. “Attending the EMI has given me a more well-rounded view of the business principles required to set goals, delegate accordingly to reach those goals, and incentivizing fairly and properly to maintain a high level of employee focus and morale,” said Mike Lind of National Industrial Lumber Co. Only two seats remain for the 2016 course, so those interested in attending should register soon at nawla.org.
EXPERIENCED MANAGERS receive high-level business training at NAWLA’s fall Executive Management Institute.
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NAWLA Special Focus By North American Wholesale Lumber Association
Create connections to build tomorrow at 2016 A A Traders Market
T
Las Vegas would like you to believe that you shouldn’t discuss anything that happens there upon your return home. The North American Wholesale Lumber Association encourages you to consider a different approach for its 2016 Traders Market, which will be hosted there Oct. 26-28. As its largest annual gathering, the Traders Market brings together wholesalers, manufacturers, and transportation and related service providers—the key players across the lumber supply chain—in one exciting location. The event is focused on providing opportunities for attendees to create or renew relationships with current and HE CITY OF
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prospective business partners that will build and enhance their companies’ long-term growth and success. Last year attendee Mark Luby of Weekes Forest Products agreed, the show “solidifies current relationships, and opens the door to new possible opportunities.” Luby’s feedback is representative of 95% of 2015 Traders Market participants who indicated they met a new acquaintance or renewed a relationship that will lead to new business. Not surprisingly, 96% cited that the benefits justify the event investment. These sentiments were echoed by attendees on both sides of the booths. “As a manufacturer, I saw more deal-
May 2016
ers in the first three hours of this show than I’ve seen in any three-day show I’ve ever attended,” said Joel Cone of NewTechWood, Ltd. “This year we benefited by connecting with existing customers from across the country all in one location,” Jeff Tweten, WorkSafeWorkSmart. com, added. “We were also able to meet with potential new customers and benefited from the training offered at the show.” Celebrating its 20th anniversary, the 2016 Traders Market experience promises more of the same. The continued popularity and growth amongst exhibitors and attendees is expected to continue for this year, yielding a show
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floor with an anticipated crowd of more than 1,500 participants and 250 exhibitors. “We are excited to host this year’s Traders Market at The Mirage in Las Vegas,” said Kip Fotheringham, director of sales & marketing for Hampton Affiliates, and 2016 NAWLA Traders Market Committee chairman. “The energy and enthusiasm that the city is known for mirrors the high energy level that exists over two days each year on our trade show floor. And, the convenience of countless restaurants and nightlife options—both within minutes from The Mirage on the Strip—means our buyers and sellers will have the chance to continue important conversations well beyond the show floor.”
NAWLA 2016 Traders Market October 26-28, 2016 The Mirage, Las Vegas
egistration a ailable now at nawla.org
The signature feature of the Traders Market, its trade show floor, will retain a similar schedule as in years past, with a few layout improvements to help attendees maximize networking opportunities throughout Thursday Oct. 27 and the morning of Friday Oct. 28. “While the Traders Market Committee and NAWLA’s leadership are always on the lookout for new elements to add value to the event experience, we are also mindful of the importance of the connections that are made between suppliers and distributors during the event,” Fotheringham said. “The enhancements you’ll see in Las Vegas were specifically designed to facilitate enhanced networking and relationship-building.” For example, Networking Central, home to impromptu meetings and the popular Learning Lounge sessions, will move to the middle of the show floor for the 2016 event, making it a more convenient resource for buyers, sellers and those seeking to build their knowledge. Returning attendees will also experience well-received program features such as an event-focused app that delivers up-to-date program and attendee information directly to participants’ smart phones, and an opening keynote whose wisdom motivates buyers and sellers for the duration of the event.
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Thanks to the Vegas venue, attendees will have the option to attend The Beatles LOVE by Cirque du Soleil after the show floor has closed at a group discount. The Mirage is also home to the Aces of Comedy and other entertainers; 16 restaurants ranging from American and Brazilian steakhouses to Chinese and Japanese cuisine; nine nightclubs and bars; 100,000 sq. ft. of gaming; one of the most technically advanced aquariums in the world; a spa & salon; shopping; and access to one of the nation’s most exclusive golf courses, Shadow Creek. For Traders Market attendees looking to polish their sales skills before hitting the tradeshow floor, the second annual Wood Masters course will be hosted Oct. 24-26 at The Mirage. Because the event is designed for traders, sales professionals, and other lumber professionals who are staying for the Traders Market, the agenda for this two-day course will focus on advanced selling and negotiation skills to instruct attendees about enhancing assertive communication, identifying and eliminating flaws in their negotiation profiles, and increasing the effi-
ciency of their prospecting and time management efforts. “Based on recent trends, we anticipate our show floor and Wood Masters Course will fill up quickly, and we will continue to see strong increases in the numbers of whole-
Wood Masters
October 26-28, 2016 The Mirage, Las Vegas
egistration a ailable now at nawla.org
salers and manufacturers who join us in Vegas,” said Fotheringham. “I encourage all of those considering these opportunities to bring a big team, register them now, and start planning their meetings in advance of the event.” Registration is now open for Traders Market and the Wood Masters course. Those looking to exhibit may also secure their booth space now, on a first-come first-served basis. Visit www.nawla.org to learn more about the event, and check back often and new details are provided.
Pau Lope® is back “Nothing Measures Up” Pau ope Brand ecking is considered the orld s inest ardwood ecking for its beauty durability highest grade absence of defects low K moisture content and fine packaging Trademarked in and under new ownership since 3 Pau ope ecking has returned better and stronger than ever The Pau ope ompany has aligned with core sawmills to refresh and manufacture the grade and uality to the high standards of the brand s heritage Now as the Pau ope ollection umaru and Massaranduba oin IP for a wider selection of Pau ope eck choices
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www paulope com May 2016
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61
amily Business: The Status ffect (Continued from page 1)
• Other executives may fear their status will diminish with the new generation. Electing the appropriate leader (high status role) from a group of siblings—who share a peer like relationship in the family—can confound families and lead to an unwillingness to make the needed choice. Furthermore, as no one in the next generation necessarily aspires to have the same kind of status as the founder, adapting to a new style of leadership can be a challenge for the entire system. Sibling partnership and cousin ownership groups come with their own unique set of characters and challenges that may also be affected by status issues. For example, sibling rivalry often starts out as perceptions of uneven favor meted out between brothers and sisters by adult family members (e.g., “mom always liked you best...”). There are other family relationships that often see their
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fair share of conflict, including husband and wife, motherin-law and daughter-in-law, and father-son, just to name a few. In almost all of these relationships we can observe tensions that are likely rooted in status needs and challenges that often boil down to who has more “pull” in the system or who is more valued, respected or favored, whether by perception or reality. These status threats can show up in a family enterprise through a variety of behaviors, including vying for positions of power, disagreements over compensation and title, office size and location, aggressively asserting personal influence over direction, pushing transition discussions and generational transfers. In every relationship, status challenges exist as there is a natural desire to be the stronger voice based on the brain’s status need. Marmot in his longitudinal research of the hierarchy in the civil service calls this need the “status syndrome.” Leaders have their status challenged continuously in a family enterprise in small and sizeable ways. For example, their ideas and decisions may be routinely disputed or
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opposed (small) or a sibling or cousin may want to remove them from their position for not achieving results (large). Both family and non-family leaders need to be prepared for these challenges and they need to manage their own status needs in response to these challenges. Defensive behaviors often follow when an individual’s status is being threatened or ignored. These might show up as a lack of communication, refusal (overt and covert) to share information or discuss business decisions, refusal to be objective about leadership capabilities, using aggressive and condescending language, triangulation and other similar responses. Interestingly these poorer behaviors can be demonstrated by both those who have high and lower status rankings as a way of coping with the imbalance. While these behaviors are likely tied to habits learned early in life, they tend to be counterproductive later in life. The bottom line is that attempting to strongly assert or challenge status in the family business system will tend to have negative and unnecessary impacts on the quality of relationships among family members and in the business. Although family firms are fraught with status challenges, they also provide opportunities for fulfilling our legitimate need for status. By shifting our focus and thinking from status “threats” to status “needs,” the complexities and potential conflicts among family members can be managed more effectively. By understanding that our need for status is natural, we can better understand, accept and manage this need, with hopes of improving the quality of relationships between family members. When viewed through this lens, family members have basic status needs that show up in the form of respect, capability, influence and authority. The challenge is how to help families create
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ways to identify and address these status needs so that different individual needs can be met, while simultaneously allowing the family and business to function in an effective and healthy manner. Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.
emodeling Picks
p the Pace
U.S. remodeling and repair expenditures are predicted to climb 8.6% this year to $310 billion, approaching the 2006 peak of $327 billion, according to a new study by Harvard University’s Joint Center for Housing Studies. The gains are related to rising home sales, due to existing homeowners hiring contractors to spruce up their houses before putting them up for sale and to new home buyers looking to customize their recent purchases. Consequently, spending is more likely to be for improvements, such as upgrading bathrooms and kitchens, than for needed repairs, such as repairing a roof. Another report, released days earlier by BuildZoom and the Massachusetts Institute of Technology’s Urban Economics Lab, expected more modest growth. Its index estimated remodeling rose 2.6% last year, vs. 4.4% estimated by Harvard’s housing center.
COMING NEXT MONTH
in the June issue of The Merchant Magazine
The Green Issue
May 2016
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SELLING with Kahle By Dave Kahle
The upside of risk taking
W
HAT SETS THE exceptional professional apart from the average? Regardless of the profession, from sales to psychiatry, the exceptional professionals share certain characteristics. Here’s one: the propensity to take risks. Now, don t get the wrong idea. We’re not talking about skydiving here. Nor are we talking about sinking your life savings in the new start up dot com that your friend told you about. I don’t mean taking risks that might endanger your health, safety or long-term security. Instead, I am talking about taking risks that force you to move out of your comfort zones on the job—risks that will stimulate you to stretch yourself, to become more competent, to gain skills that you may not have, to expand your abilities and, maybe, in so doing, help you become more effective and more efficient. Here’s an example. When I began my business, my focus was 100% on consulting. I had never given a seminar in my life. But I read the books on how to build a consulting practice, and all the experts recommended giving semi-
nars as a way to build your consulting practice. So I determined to do so. I developed a program, “How to Find, Interview, Select and Hire a Good Salesperson,” and approached the local business college with a proposal to jointly present it. They agreed, and a few months later, I presented my first seminar. It was a huge risk—something I had never done before.
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It caused me to stretch myself and to learn a new set of skills. I could have failed miserably. But, the seminar was successful. And that one led to another, and that to yet another. Within a couple of years, I had discovered that speaking and training could be major parts of my practice. Today, my speaking and training income exceeds my consulting income by multiples. If I hadn’t taken that first risk, I would never have built a successful speaking practice. That practice has allowed me to travel all over the country, and to present in many countries around the world. Not only has my income expanded, but my life has broadened as well. That’s the kind of risk I’m talking about. It’s the kind of risk that calls on you to expand yourself. If you fail, it can be emotionally painful, and perhaps financially troublesome. However, if you are successful, it can lead you to other, and greater opportunities. Test me on this. Talk to someone in your profession who has become exceptionally successful. Ask him/her about the risks they have taken in their professional lives. You’ll find, I believe, that almost every successful professional has stretched themselves beyond their comfort zones at a number of different times. It’s one of the characteristics of the highly successful professional. If you can build a propensity to take these kinds of risks into your mind set, you’ll grow faster and further than if you remain safely inside of your comfort zones. You take risks in a lot of ways. As a salesperson, when you call on a different type of customer than that with which you have become comfortable, you take a risk. For example, when you call on the chief financial officer of a business instead of just the production supervisor, you’ve stepped out of your comfort zone and taken a risk. In every profession, when you choose to implement any new strategy or tactic, or you chose to do something differently, you take a risk. When you choose to try a new way to make a presentation, contact your clients, or locate your office, you are taking a risk. When you chose to question and then change some long-entrenched habit, you are taking a risk. When you expand your efforts in any direction that calls for you to stretch and attempt something new, you are taking a risk. Building-Products.com
Some of those risks will turn out well, others will become failures. Regardless, the simple act of trying something different and new will help you. You’ll gain confidence in your abilities, and you’ll learn from both your successes as well as your failures. Your life will expand, you’ll grow wiser, and you ll become more
successful. That is the sure payoff for every risk thoughtfully taken. – Dave ahle has presented in states and 11 countries, produces a free weekly e ine, and has written 10 books, including How to Sell Anything to Anyone Anytime. Reach him at (800) 331-1 8 or via www.davekahle.com.
With Cascadia decking, the unsurpassed natural beauty of Western Red Cedar is matched with Terminal Forest Products’ renowned manufacturing quality. This creates a product that is beautiful, functional, and eco-friendly. Cascadia decking is made from a 100% renewable and sustainable North American resource unlike PVC and composite decking, which is largely made from non-renewable petroleum products. Third-party life cycle analysis clearly shows WRC decking as the best environmental choice for decking: WRC significantly outperforms sustitute products in every environmental measure. Distributed by
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Superior Service, Products & Support May 2016
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65
NEW Products
The erfect obsite encil
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With Senco’s new SHD150XP, deck builders can now install Senco Mantis brand hidden deck clips up to 80% faster than traditional fastening methods. The tool features a rare earth magnet that holds clips in place while the patented aluminum EZ slide attachment guides and aligns Mantis deck clips into the proper position for quick and easy installation.
Ideal for almost any LBM professional, the Reach Deep Hole Mechanical Pencil is a multi-purpose carpenter’s pencil attached to a tape measure and featuring a slim neck that allows easy access to deep holes. The pencil comes with 2.88mm graphite and a heavy-duty plastic case that hooks easily on a belt. The pencil also comes with a built-in sharpener and refill leads.
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the finest timbers available, delivered to customers accurately, honestly & on time.
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DeckWise Joist Tape selfadhesive deck flashing is used to apply to decking joists, around deck support posts and over ledger boards. The tape creates a waterproof seal that helps stop decay and wood rot, helping to create an anti-corrosion barrier and extend the lives of decks. The tape is a malleable polyethylene waterproof wood flashing and material, using a rubberized asphalt mastic adhesive.
MiTek’s Adjustable Deck Tension Tie resists the lateral loads that pull a deck away from the structure. The development is part of Mitek’s effort to make decks safer and to bring users in compliance with the 2015 IRC R507.2.3(2), which requires the installation of a “Hold-Down Device” with a minimum allowable tension load of 750 lbs., in four locations on the deck.
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Skin Shield
True Effects Hand & Skin Shield goes on as a soothing cream, protects like a glove, lasts for hours, allows hands and skin to breathe, and yet won’t wash off like ordinary moisturizers. A typical application of the cream lasts up to four hours to protect against the damage that chemicals can cause, and stays on through repeated hand washings or applications of alcoholbased sanitizer.
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Building-Products.com
May 2016
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67
ip It
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DeWalt has introduced the new Multi-Functional Utility Bar, designed for ripping, striking, prying and scraping applications. Available in 30” and 40” sizes, the MFU Bar has a hardened striking surface made with 7/8” tri-lobe stock, gooseneck head for board grabbing, and extrawide pry end designed with precision ground edges. The tool also simplifies adjusting floor or wall boards by providing a pivot leverage point. The angled foot at its bottom also offers leverage while scraping or lifting during the demolition process. The nail puller located at the bottom of the bar helps remove stubborn nails with ease.
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The Most Stable & Beautiful Hardwood Decking & Cladding Available • Environmentally friendly manufacturing process • Made from American hardwoods • JEM™ (Joint End Matched) Machined End Joints • Thermal modification stabilizes the wood, making it 7 times less likely to warp, check, bow, cup, twist, expand or contract • Class 1 durability rating
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May 2016
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ntryways for a Craftsman
Barrington Fiberglass Entry Doors by Masonite now offers the Craftsman Entry Door, in oak and mahogany textures. It combines two popular styles to complement traditional and modern homes. The entryways feature Barrin-gton’s recessed flat three-panel design and Marco textured glass with antique black caming. The doors measure 36 by 80 inches with sidelites of 12 by 80 inches or 14 by 80 inches.
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Building-Products.com
May 2016
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eady-to- uild
ailings
intage
ues in Fencing
Ultra Aluminum is broadening its product offering with the introduction of a new CCRR-Code approved ready-to-build boxed aluminum railing program. The new line, Ultra Max, has met stringent third party audit and testing requirements. The company also offers level and stair rail kits, as well as 6” and 8” Column Wrap and newel post kits, gates, arbors, Eclipse privacy panels, and Juliette balcony kits.
Ply Gem has added a fifth color to its line-up of Woodland Select vinyl fencing, delivering the details of natural wood without the nuisance of annual upkeep. Aged Cedar features a realistic variegation with black and gray overtones, and emulates or mirrors the color and texture of naturally aged, untreated cedar. It rounds out the collection of Natural Cedar, Redwood, Weathered Cedar and Chestnut Brown.
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(888) 975-9436
May 2016
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MAKE BEST USE OF THE AVAILABLE LABOR POOL:
ocket Si e Cutters
Milwaukee Tool has introduced a next generation Fastback Flip Utility Knife, designed with the same trademark features as the first model. The knife is designed to maximize productivity on the jobsite with press-and-flip one-handed opening. In addition, quick blade changes allow users to make blade replacements easily. The knife increases blade capacity to five blades—one in the tool and four in the storage door, allowing users to fit an entire five-pack of blades in their tool.
The new PaCSTM Cladding System by Thermory is designed to create an incredibly fast and simple rainscreen installation. The system is designed around PVC furring strips with pre-attached hidden installation clips. Cladding comes pre-grooved and ready for installation. Combining durability and function, the clips provide 350 lbs. of resistance per clip and the proper ventilation gap from the wall.
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© 2016 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, the TREE-IN-A CIRCLE symbol, BCI, AJS and “Great products are only the beginning.” are trademarks of Boise Cascade Company or its affiliates. *Comparison values are based on an example of a typical 2,000 sq ft, single-story home using Boise Cascade design software and following current residential building code provisions. Specific information on the example floor framing area is available upon request.
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May 2016
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SoCal GOLF Photos by The Merchant Magazine
WEST COAST Lumber Building Material Association called golfers to Yorba Linda, Ca., April 14: 1 Terry Rasmussen, Lance Ford, Frank Bader, Jim Nicodemus. .2 Paul Corso, Ed Holmes, John Pasqualetto, Scott Middaugh. Oliver Barnes, Javier Medina, Danny Sosa. 4
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Daniel Hines, Joe Morin, Darrin Myers, Ryan Mitchell. 5 Ted Smith, Mark Davis, Gary Roffers, Craig Crafton. 6 Rick Porter, Ben Julianel, Don Kavert, Marc Spitz. Joe Thomas, Barrett Burt, Bill Sullivan, Tom Angel. 8 Mark Rommel, Huyvu Lam, Dean Costello, Bob Nagle. 9 Sean
May 2016
Cummings, Fia Faumuina. 10 Mo Shearer, Jeff Bloch. 11 Brigette Streeper, Kris Perez. 12 Ken Dunham, Doug Willis. 1 John Allen, Josh Orr, Natalie Allen, Jeff Wilkins. 14 Bart Weber, John Seely, Jeff Norihiro, Joe Tanner. (More photos on ne t two pages) Building-Products.com
SoCal GOLF Photos by The Merchant Magazine
WCLBMA GOLF (continued from pre ious page) 15 Joe McCarron, Keith Cotarelo. 16 Chad Huffman, Troy Huff, Drew Nicassio, Andrew Manke. 1 Jack Butler, Joe Allotta, Dan May, Ryan Lauterborn. 18 Kevin Ulibarri, Heath Stai, Moses Saenz, Carlos Gonzalez. 19 Building-Products.com
Craig Larson, Frank Gonzalez, Dan Lucero, Tony Campbell. 20 Jacqueline Palazzolo, Kevin Serrame, Kressie Bates. 21 Karl Hallstrom, Joe Honochick, Mark Grube, Sal Camarda. 22 Ernie Rodriguez, Raul Soto, Tiffany Mendoza, Raymond Torres. 2 Mike Manke, Ashley
Twomey, Tom Manke, Rebecca Beton. 24 Rudy Lopez, Rolando Robles, Richard Rios, David Iblings. 25 Lauren Stanley, Bill Gaita, Michelle Mix, Elizabeth Hines. 26 Kelly Lyon, John Mayhew, Tim Kennedy, Clyde Jennings. (More photos on ne t page)
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SoCal GOLF Photos by The Merchant Magazine
WCLBMA (cont from pre ious pages) 2 Alain Patton, Monika Bartko, Steve Black, Ron Hillman. 28 Geoff Garner. 29 Chris Johnson, Danae White, Alex Uniack. 0 Kris Schroeder, Steve Schoeder. 1 Maritza Mejia, Glenda DeFrange. 2 Rex Klopfer, Pete Meichtry, Russ
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Primrose, Lynn Bethurum. Aaron Castaneda, Juan Guzman. 4 Damien Simpson, Larry Christensen. 5 Mike Carey, Rick Deen, Chris Swanson, Danny Andrea. 6 Al Reed, Craig Evans, Hex Hexberg, Bryan Murdock. Brad Satterfield, John Lopez, David Abbott, Sal
May 2016
Castillo. 8 Todd Beaman, Jesse Jackson, Tyrone Smith, Jeff Van Matre. 9 Jean Henning, Charlene Valine. 40 Cami Waner, Brian Hurdle. 41 Scott Whitmann, Matt Manke, Miguel Hernandez, Mark Huff. 42 Frank Huerta, Chad Butcher. 4 Keith Lyng, Mike Nicholson. Building-Products.com
Sacramento rebirth SACRAMENTO RELAUNCH Photos by Stacey Douglas Jones
SACRAMENTO Hoo-Hoo Club 109 held its first meeting in years April 7 to see if there was interest in reviving the dormant club. There was. 1 Snark Kent Bond, Adam Noorani. 2 Edgar Massoletti. Jeff Miller, David Jones, Thom Wright. 4 George Hammann, Karsten Vardas. 5 Kevin McVey, Bill Simpson. 6 Mark Graham. John Dee Dee Graham, Pete Fleming. 8 John Parsons, Sandy an, Greg Bates. 9 Building-Products.com
Casey Reeves, Charanjit Chima. 10 John Taylor, Pat an. 11 Gary Mierzwak, Mamie Mierzwak. 12 Troy Felder, Mark Mensigner. 1 Steve Smithers, Mike Wright. 14 Larry Baldwin, Jim Stockman. 15 Cary Twing, Ren Reinke. 16 Jim Hosner, Branden Bruce. 1 Jeff Waltz, Anthony Escobedo.
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NAWLA sells out in Vancouver
Cees de ager, chief marketing officer of Softwood Lumber Board
North American Wholesale Lumber Association’s sold-out regional meeting in Vancouver, B.C., was nothing short of a success as members showed up to network, educate themselves and their colleagues, and gain some industry insight. On April 21, 200 members packed the Vancouver Club to hear a NAWLA update from executive director Marc Saracco, an insightful keynote from Softwood Lumber Board’s Cees de Jager, and industry insight from Daryl Swetlishoff, senior managing director of Raymond James Ltd. Susan Yurkovich, president and CEO of COFI, and Ananth Krishnan, head of business development, HSBC Bank Canada, also delivered keynotes to the group. In addition to fueling their minds, attendees also made it a point to network with some of their closest friends and business partners during a cocktail and social hour.
Marc Saracco, NAWLA executive director
NORTH AMERICAN Wholesale Lumber Association regional meeting in Vancouver, B.C.: 1 Alan Huston, Paul Harder, Ray Pauwels. 2 Craig Beere, Jordan Cheadle.
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Cees de Jager, Bart Bender. 4 Robin Carkett, Amit Kumar. 5 Jack Hetherington, Lauren Chimko. 6 Keta Kosman, Daryl Swetlishoff. Manuel Schellenberg. 8 Guy Burrell, Paul May 2016
Douglas, Kevin Chong. 9 Les Timar, Michael Almond. 10 Mike Jones, Sam Moran. (More photos on ne t two pages) Building-Products.com
NAWLA VANCOUVER REGIONAL Photos by The Merchant Magazine
NAWLA (continued) 11 Michael Watson, Chris Redston, Angela Tramontin. 12 Sandy McKellar, Kelly McCloskey. 1 Jack Alley, Darren Barker. 14 Charlie Loo, Maria Pemberton. 15 Anne-Marie Davies, Shelley Perrie. 16 Doug Butterworth, Jefferey Lin. 1 Building-Products.com
Wayne Tracy, Brad Meeker. 18 Kirk Tlagy, Rob Feustel. 19 Bruce Pollock, Curtis Walker. 20 Marta Chiavaccio. 21 Darren Barker. 22 Darcy Mercer, Les Timar, Carla Hubbert. 2 John McCarter, David Elstone, Brendan Hiller. 24 Richard Robertson. 25 Janine Luce, Al
Fortune, Dave Pollock. 26 Jeff Bowers, Kyle Jones. 2 Eric Kjode, Jennifer Raworth. 28 Maria Frigo. 29 Ross Ward, Phil Lemon, Scott Buchholz. 0 Peter Lang, Ross Cameron. 1 Greg Smith, Kyle Jones. (More photos on ne t page)
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NAWLA VANCOUVER REGIONAL Photos by The Merchant Magazine
NAWLA PRESENTATION (continued from pre ious pages) included a timeline of surging Canadian investment in the U.S. South. Regional meeting attendees included 2 Kevin Sedler, Dianne Angelo, Juan Carlos uintana, Dorina Jeske. Michael Sivucha. 4 Susan Yurkovich, Kevin Pankratz. 5
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Tom Davis. 6 Bill Barnett, Roberta Upgaard, John Gillis. Garry Arthur, Carlos Furtado. 8 Dawn-Ann Byers, Todd Perry. 9 Hayden Malz, Greg Tanner, T.J. Reynolds. 40 Marc Saracco. 41 Ana Vasquez, Jared Fedosoff. 42 Jerry Lawson, Paul Owen, John McCarter, Alex McCarter, David Smith. 4 May 2016
Tim McMorran, Brad Black. 44 Sam Satosono, John McCarter, Dennis Wight. 45 Ryan Furtado, Allen Fitzpatrick. 46 Will Trant, Jake Power, Kent Beveridge. 4 Peter Novak, Tammy Fuentes, Carl Dobler. 48 Andrew Rielly, Paul Douglas, Neil Van Swearingen. 49 Scott Elston, Aly Kingsley. Building-Products.com
ASSOCIATION Update Western Building Material Association exec Casey Voorhees will conduct the group’s next blueprint reading & material take-off workshop May 24-25 at its Kincaid Learning Center, Olympia, Wa. WBMA executive and board meetings will be held July 19 at the Radisson Hotel, Seattle, Wa.
Golf Course, San Dimas, Ca. The club will welcome as its honored guests U.S. Marines from the Wounded Warrior Battalion. Attendees will also have a chance to win a weekend wine tasting trip for two at Temecula Creek Inn, Temecula, Ca., and after dinner, guests can enjoy a dinner buffet.
West Coast Lumber & Building Materials Association is gearing up for its associates/dealers annual golf tournament June 9 at Rancho Solano Golf Course, Fairfield, Ca. A portion of this year’s net proceeds will be donated to Wounded Warrior Project. The 2nd Growth mill tour May 1517 through Ukiah and Eureka, Ca., is technically sold out, but anyone still interested in attending should contact the WCLBMA office to get on the waiting list.
Mountain States Lumber & Building Material Dealers Association tees off its annual Colorado Council golf tournament July 12 at The Ranch Country Club, Westminster, Co.
Southern California Hoo-Hoo Club will gather for its 9th annual Don Gregson Memorial Golf Tournament May 20 at San Dimas
Western Wood Preservers Institute s summer meeting is set for June 26-28 in Vancouver, B.C. Kitchen Cabinet Manufacturers Association’s 61st annual convention and leadership conference will be May 15-18 at The Broadmoor, Colorado Springs, Co. Jim Knight will give a keynote address on Culture that Rocks The TREATERS
business culture expert and author is known to bring his high energy, and interactive approach to deliver insights on organizational culture, employee engagement, training and philanthropy to help organizations stay relevant in the 21st century. Training Tomorrow’s Talent is a keynote that will be presented by Jennifer McNelly, executive director, The Manufacturing Institute. She will discuss the institute’s public-private strategy to better connect the supply of talent to employment in manufacturing grounded in industry standards and nationally portable manufacturing certifications. Wayne Wilbanks, Wilbanks, Smith & Thomas, will give an outlook for the economy and housing; Riley Kirby, chief of research, Research Institute for Cooking & Kitchen Intelligence will discuss what’s hot in the kitchen; and Jack Uldrich, global futurist and author, will explain why unlearning old ways of doing business is a critical skill to successfully navigate a future where the pace of scientific and technological knowledge is doubling every seven years.
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595-2141 — j.fauria@sbcglobal.net May 2016
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IN Memoriam Arthur Abraham Pozzi, 84, founder of wholesaler Arthur A. Pozzi Co., Portland, Or., and several millwork companies, died March 26. After graduating from business school in British Columbia in the late 1940s, he entered the lumber business,
starting in Macmillan Bloedel’s sawmills and quickly rising to the main office. In 1959, he moved to the Portland area to join Hancock Lumber. In 1962, he started his lumber wholesale company. He opened Bend Millwork, Bend, Or., in 1968 and Pozzi Windows, Bend, in 1978. He sold them in 1986.
ClASSIFIed Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type. uestions Call (714) 486-2735. Deadline: 18th of previous month. Send ad to david@building-products.com.
FOR SALE
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MERCHANT Magazine Call 7 8 -2735 SAdams building-products.com
HELP WANTED AGL FOR ST PRODUCTS, a manufacturer and marketer of industrial lumber and a broad range of lumber products, is currently looking to add a Lumber/Panel Commodities Trader to our expanding company. We are headquartered out of Eagle, Idaho, with our southern marketing office located in Houston, Texas. In addition we operate several manufacturing locations in Oregon and Alabama. This position calls for a person that has a strong desire to succeed and control their own destiny. Experience would be nice but not mandatory, we offer great training from our experienced team that has multiple years’ experience and a great reputation in the lumber industry. We offer a great working environment with an opportunity for a virtually unlimited income. Direct Inquiries to: Brad Bower or Cary Holaday, (208) 323-9300, choladay@eaglefp.net.
In 1993, Pozzi launched Oregon Woodworking, Bend, operating the firm until 2007. John . Colombo, 92, former coowner of Columbo Lumber, Sebastopol, Ca., died March 9. After serving in the U.S. Army Air Corp, he and his brother-in-law purchased Colombo Lumber, Sebastopol, from his father. They closed the business in 1978, and he went to work for Yaeger & Kirk, Santa Rosa, staying on until it shut down. Dennis Denny Sailer, 92, owner of Adams Hardware, Tustin, Ca., died April 8. A Navy veteran of World War II, he purchased the store in 1972. His daughter, Susan Pinsky, has stepped in to operate the business for the short term. Shinu V. Murthy, 76, president and founder of Futures Technology Corp., Pepper Pike, Oh., died April 3. A native of India, he began working as a commodities broker in 1966 and became involved with the Chicago Mercantile Exchange’s lumber futures in the 1970s. He started his own brokerage house in 1980.
COMINg: MATerIAl hANdlINg & eQUIPMeNT ISSUe Moving product to, through and from your facility efficiently and affordably can make or break a business. This July, The Merchant Magazine will take a look at Material Handling from all angles, including: • Shipping & Delivery
• Racking, Storage & Reloads
• Forklifts
• Improving Facility Layouts
Plus, this issue will also feature the latest on Pressure Treated Wood and Engineered Wood Products, including a Special Section Spotlighting APA and its members.
TO AdverTISe IN ThIS MUST-reAd ISSUe, CONTACT (714) 486-2735 PATrICk AdAMS – PAdAMS@bUIldINg-PrOdUCTS.COM Or ChUCk CASey – ChUCk@bUIldINg-PrOdUCTS.COM
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advertisers index All-Coast Forest Products [www.all-coast.com] .........................55 Allura [www.allurausa.com]................................................Cover IV Arauco [www.arauco.cl.com] ........................................................46 Atlantis Rail Systems [www.altlantisrail.com].............................11 AZEK [www.azek.com].....................................................................7 Big Creek Lumber Co. [www.big-creek.com]...............................64 Blue Book Services [www.bluebookservices.com] ....................51 Boise Cascade [www.bcewp.com]................................................71 California Cascade Industries [www.californiacascade.com]....62 Capital [www.capital-lumber.com]................................................71 CMPC [www.cmpc.cl].....................................................................57 CT Darnell Construction [www.ct-darnell.com]...........................53 Deckorators [www. deckorators.com]..........................................23 Deck Supply Warehouse [www.decksupplywarehouse.com]....31 DMSi [www.dmsi.com] ...................................................................19 Eco-Chemical [www.ecochemical.com] .......................................24 Fasco America [www.fascoamerica.com]....................................69 FastenMaster [www.fastenmaster.com].......................................13 Fiberon [www.fiberondecking.com] ........................83-84, Cover III Fontana Wholesale [www.fontanawholesalelumber.com] .........79 Grabber Construction Products [www.grabberman.com]..........70 GRK Fasteners [www.grkfasteners.com].....................................40 Huff Lumber [www.hufflumber.com] ............................................66 Humboldt Redwood [www.getredwood.com] ..............................33 International Wood Products [www.iwpllc.com] .........................25 Inteplast [www.inteplast.com].......................................................41 J&L Heat Treating Service .............................................................79 J.M. Thomas Forest Products [www.thomasforest.com] ...........62 Jones Wholesale Lumber [www.joneswholesale.com] ..............63 Keller Lumber .................................................................................65 Kop-Coat [www.kop-coat.com] .......................................................3 Koppers Performance Chemicals [www.kopperspc.com]..........43 McFarland Cascade [www.ldm.com] ............................................29 Mount Storm Forest Products [www.mountstorm.com].............68 NewTechWood [www.newtechwood.com].......................34, 36, 38 Norman Distribution Inc. [www.normandist.com].......................65 North American Wholesale Lumber Assn. [www.nawla.org] .....45 Pau Lope Co., The [www.paulope.com] .......................................61 Pelican Bay Forest Products [www.pelicanbayfp.com]..............68 Railing Dynamics Inc. [www.rdirail.com] .....................................15 Redwood Empire [www.redwoodemp.com] .................Cover II, 21 Roseburg Forest Products [www.roseburg.com] .......................27 Simpson Strong-Tie [www.strongtie.com]...................................37 Siskiyou Forest Products [www.siskiyouforestproducts.com] .39 Snider Industries [www.sniderindustries.com] ...........................50 Sure Drive USA [www.suredrive.com]..........................................26 Swanson Group Sales Co. [www.swansongroupinc.com].........49 Taiga Building Products [www.taigabuilding.com] ....................67 Terminal Forest Products [www.terminalforest.com].................30 Universal Forest Products [www.ufpedge.com]..........................35 Viance [www.treatedwood.com] ...........................................Cover I Western Forest Products [www.westernforest.com] .................47 Western Wood Preserving [westernwoodpreserving.com]........42 Weyerhaeuser [www.woodbywy.com/distribution].......................5 Woodway Products [www.woodwayproducts.com] ...................59 Yakama Forest Products [www.yakama-forest.com]..................58 Building-Products.com
date book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Los Angeles Hardwood Lumberman’s Club – May 14, Day at the Races, Santa Anita Racetrack, Arcadia, Ca.; www.lahlc.net. Hardwood Plywood & Veneer Association – May 15-17, annual convention, Hilton New Orleans Riverside, New Orleans, La.; (703) 435-2900; www.hpva.org. West Coast Lumber & Building Material Association – May 1517, 2nd Growth mill tour, Northern California; (800) 266-4344; www.lumberassociation.org. Kitchen Cabinet Manufacturers Association – May 15-18, annual convention, The Broadmoor, Colorado Springs, Co.; (703) 2641690; www.kcma.org. Southern California Hoo-Hoo Club – May 20, annual Don Gregson Memorial Golf Tournament, San Dimas Golf Course, San Dimas, Ca.; (323) 559-1958; www.hoohoo117.org. Anaheim Spring Home & Garden Show – May 20-22, Anaheim Convention Center, Riverside, Ca.; (818) 723-1374; www.homeshowconsultants.com. Do it Best Corp. – May 20-23, spring market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com. Dave Kahle Seminar for Sales Managers – June 2-3, Philadelphia, Pa.; (800) 331-1287; www.davekahle.com. Riverside Home & Garden Show – June 3-5, Riverside Convention Center, Riverside, Ca.; www.homeshowconsultants.com. West Coast Lumber & Building Material Association – June 9, golf tournament, Rancho Solano Golf Course, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org. Western States Roofing Contractors Association – June 12-14, convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com. National Lawn & Garden Show – June 14-15, Chicago, Il.; (888) 316-0226; www.nlgshow.com. National Retail Federation – June 14-16, loss prevention conference & expo, Philadelphia, Pa.; (800) 673-4692; www.nrf.com. PCBC – June 22-23, Moscone Center, San Fransisco, Ca.; (800) 956-7469; www.pcbc.com. Los Angeles Hardwood Lumberman’s Club – June 25, bay cruise, Newport Beach, Ca.; www.lahlc.net. Western Wood Preservers Institute – June 26-28, summer meeting, Vancouver, B.C.; (360) 693-9958; www.wwpinstitute.org. Forest Products Society – June 27-29, 70th international convention, Portland, Or.; (855) 475-0291; www.forestprod.org. Ontario Home & Garden Show – July 8-10, Ontario Convention Center, Ontario, Ca.; www.homeshowconsultants.com. Mountain States Lumber & Building Material Dealers Association – July 12, Colorado Council golf tournament, The Ranch Country Club, Westminster, Co.; (303) 793-0859; www.mslbmda.org. Southern California Hoo-Hoo Club – July 13, speaker meeting, Anaheim Hills Golf Course, Anaheim, Ca.; (323) 559-1958; www.hoohoo117.org. Los Angeles Hardwood Lumberman’s Club – July 14, meeting, Tulsa Rib Co., Orange, Ca.; www.lahlc.net. West Coast Lumber & Building Material Association – July 1415, 2nd Growth summer conference, Omni Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca.; (800) 266-4344; www.lumberassociation.org. Western Building Material Association – July 19, executive and board meetings, Radisson Hotel, Seattle, Wa.; (360) 943-3054; www.wbma.org. May 2016
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Flashback 89 Years Ago This Month
The lumber industry was roaring in the spring of 1927, thanks to residential construction reaching its highest monthly record ever ($621 million in March construction, $1.2 billion in new permits), as reported by The California Lumber Merchant in May of 1927. Among other headlines: • Pioneer Paper Co., Los Angeles, Ca., introduced a forerunner to housewrap—a “reinforced house lining” said to insulate against heat, cold and moisture. It used its previous product (heavy insulating paper impregnanted with asphalt) as its base, but incorporated
several new unusual features: a series of threads running through the fabric to increase tensile strength and a mineral surface for higher resistance to abrasion. • The S.S. Pont Fermin became the first vessel to sail from the Pacific Coast to the new seaport of Lake Charles, La., and the first big ship to navigate the Calcasieu River as far as the Long-Bell Lumber facilities. After discharging some Long-Bell Douglas fir lumber and timbers at the company docks, the ship moved back down river to unload the remainder of its mixed cargo at the public port. The Doug fir was to be distributed to Long-Bell retail yards in the Southeast, along with the company’s southern pine, oak flooring, and creosote-treated products. A second ship loaded with LongBell items was due to arrive at the port 10 days later. • Pacific Lumber Agency, Aberdeen, Wa., rebuilt an idled Oriental Lumber Co. mill near Hoquiam, Wa., to cut lightweight spruce for use in the U.S. and British governments’ manufacture of airplanes. The reconstructed mill had a capacity of 75,000 bd. ft. per day. • The Merchant noticed that of the 311,000 entries in the 1927 Los Angeles Phone Book, two of them were lumber companies— Kerckhoff-Cuzner Lumber Co. and Capitol Milling Co.—that had appeared in every local directory since the very first, in 1880. But in year one for the listing, it contained only seven total companies with phone service (the Los Angeles Telephone Co. didn’t get its start until the year prior). Joining them in 1880 were the long-defunct J.M. Griffith Lumber Co., two grocery stores, a seeds distributor, and a cigar manufacturer.
MAY 1927 issue of The California Lumber Merchant spotlighted Schumacher Wall Board Corp., which was merged into Fibreboard Corp. in 1946.
• Hardwood prices, which had already been rising steadily, were expected to spike even more sharply, due to heavy flooding along the Mississippi River and its tributaries. Wires from the flood district showed that more than 200 hardwood mills in the flood area were affected. Although damage figures were still being estimated, Southern hardwood production was immediately cut by more than 60%. Sources described the flooding as “the greatest tragedy that ever came to the hardwood industry of the South.” The effect on southern pine mills was far less, although many were forced to close, unable to ship or receive wood due to transportation outages. “No man can estimate the losses in the flood areas, but it will run into hundreds of millions of dollars,” wrote The Merchant. “Tens of thousands of buildings have been washed away and destroyed, and it will require an enormous amount of building material to even begin the work of replacement of shelter.”
REGIONAL insurers covered lumber companies from coast to coast.
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Building-Products.com
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A AlluraUSA.com lluraUSA.com 844.4ALL 844.4ALLURA URA
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