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Volume 93 Number 12
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A publication of 526 Media Group, Inc.
151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626
President/Publisher Patrick Adams padams@building-products.com Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus David Cutler Alan Oakes Editor/Production Manager David Koenig david@building-products.com Associate Editor Stephanie Ornelas sornelas@building-products.com
Special Features
In Every Issue
9 MANAGEMENT TIPS
PROTECT YOURSELF FROM CREDIT RISK, NOT JUST BAD DEBT
10 ONE ON ONE
WITH NEW ORCHARD SUPPLY CEO
12 INDUSTRY TRENDS
WHAT’S COMING IN EXTERIOR TRIM
14 PRODUCT SPOTLIGHT
CLAY & CONCRETE ROOFING
16 INDUSTRY TRENDS
DEALERS, VENDORS BOTH FROM SHARING DATA
PROFIT
18 FEATURE STORY
WELL-INTENTIONED EMPLOYEES MAY BE YOUR BIGGEST SECURITY THREAT
20 MARGIN BUILDERS
3D AS-BUILT MEASURING IMPROVES DESIGN, INSTALLATION
38 SPECIAL FOCUS
SELLING SOUTHERN PINE IN THE WEST
47 PHOTO RECAP: HARDWARE SHOW 48 PHOTO RECAP: HOO-HOO GOLF
Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & DIGITAL EDITION OF THE MERCHANT
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6 ACROSS THE BOARD 22 COMPETITIVE INTELLIGENCE 24 OLSEN ON SALES 26 FAMILY BUSINESS 36 MOVERS & SHAKERS 40 NEW PRODUCTS 51 ASSOCIATION UPDATE 52 APP WATCH 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 53 ADVERTISERS INDEX 54 FLASHBACK 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®2015 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.
June 2015
Contributing Editors Carla Waldemar, James Olsen Advertising Sales Manager Chuck Casey chuck@building-products.com Circulation Manager Heather Kelly hkelly@building-products.com
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PRINT or ONLINE Chuck Casey Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com
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ACROSS the Board By Patrick Adams
Technology is just a fad
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in my car tonight, my family and I sat down to our amazing gourmet meals cooked in mere seconds by one of our staff robots. Before heading to bed in my deep-sleep chamber, I put on my brain helmet and downloaded a few books by Shakespeare. I also learned Spanish. Isn’t the “technology of the future” great? When I was young, there were just nine channels on TV and no remote controls. Every night, we sat down after dinner and watched something until it was bedtime. Now, I have over 500 channels and it seems that nothing is ever on. I can send a thought to the entire world via Facebook, but appreciate when a customer mails me a handwritten letter. I can hold a web conference with an entire marketplace, but only gain new friends when I visit a customer and learn about his business by listening and walking around. My daughter at 4 is a “technology native.” She knew how to work my iPad better than me by the time she was 2, but still prefers to grab a book to read a story. Maybe technology is just a fad? Here’s a quiz—when was the first consumer PC computer available? 1977. When was the first website created? 1991. The first smartphone? Nine years ago. The first tablet? Five years ago. The first fitness/health bracelet? Two years ago. The first smartwatch? Three weeks ago. My point is this: technology advances faster than our ability to understand how to best leverage these resources to truly improve our lives. Don’t get me wrong—I love the fact that my wife can now prove any statement I make as being wrong in seconds on her phone anywhere we happen to be. In the good old days, it would take a trip to the library to access things called books and encyclopedias! It has allowed us to be faster, but have we gotten better? Is the meal I can now complete from freezer to plate in one minute 45 seconds better than a home-cooked beef brisket slow cooked for six hours hours over an open fire? Does an email convey how much I value a customer as much as a personal visit? As we move into the “future,” I hope we will learn the place and time where technology will make us better. But, technology will never replace hard work, relationships and human interaction. When properly used, technology allows us to learn what our customer’s true needs are and how to serve them in the time and fashion that best suits them. However, I stumble at times with FTER FLYING HOME
what is “faster,” and what is truly “better.” Sometimes, I want just the headline on my phone and other times, I really want to hold my favorite newspaper and read. There are times when the navigation system in my car allows me to get to a customer meeting on time and there are other times when I enjoy the journey that includes getting lost at times on a beautiful summer afternoon. Our industry is built on relationships, handshakes and being stewards of the land. Technology will continue to give us resources and information to make us even better. But at the same time we must never forget that the convenience of a text message will never replace the value of sharing stories, time and experiences with people who will become lifelong friends through our dealings with each other. With the extra time and intelligence that technology provides us, are we investing in the things that will build our business and relationships as well as preparing the next generation to take over? Don’t get me wrong, I am a HUGE fan of technology and all the latest gadgets and they will continue to shape how I evolve our business and how we conduct it! And, I especially value the time that the great people in this industry have spent sharing their stories and support with me during our personal time together. Now, I’m just waiting for my flying car!!!! I look forward to watching how the many great technology companies in our industry will help us improve our efforts to build and advance our businesses.... and relationships for decades to come. Thank you for all of your support in the past months and years. Never hesitate to email... or call... or visit... or write with an oldfashioned pen and paper on how we can better serve you! Happy Father’s Day to all of the great men who have sacrificed to give us the life that we enjoy every day.
Patrick S. Adams Publisher/President padams@building-products.com
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MANAGEMENT Tips Scott Simpson, BlueTarp Financial
Protect yourself from risk, not just bad debt
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used by dealers in our industry are nearly identical in what they ask for: company and principal info, trade and bank references, and usually requests for a personal guarantee. This information plus a statement of terms is pretty standard fare. What is far from standard, however, is how dealers manage the credit process to protect themselves from risk. First, experienced dealers ensure that all of the information is filled out completely, the application is signed, and they get completed references prior to making a credit decision. Many other dealers, however, are content to rely on their credit pull and personal relationship to make calls. I’m always surprised how often we need to follow up to get a signature or ask for the full complement of references. Second, savvy dealers call the references. All of them. And they wait for the responses. It takes time—usually a day or two—but the information gleaned is a treasure trove of information that is material to whether that customer will be a profitable one. Here’s what I mean. The credit process is not just about uncovering the risk of someone not paying you back. That’s certainly the most acute risk, but there are others to screen out or mitigate, too: slow pay, dispute risk, and fraud. Experienced dealers use all information at their disposal to uncover what kind of customer they are getting. REDIT APPLICATIONS
Slow Pay
Dealers often make pricing decisions independent of how promptly they are going to get paid. The cost of providing credit to someone who pays promptly and someone who is chronically 60 days late (but always good for it) can be 2-4% depending on a dealer’s cost of money and how much resource they use to collect that money. That can literally make the difference between a profitable and unprofitable customer. Pull the customer commercial and consumer credit bureau. Call the references. Ask not just generally how they got paid but how consistently that occurred, especially in the winter months. How that customer has paid other dealers is how they are going to pay you. Count on it. And price for it, too.
Disputes
It’s not all about when you’ll get paid. A lot of margin— not to mention time and frustration—gets burned up in resolving disputes. This is where dealer references are invaluable. In addition to asking about payment trends, be Building-Products.com
sure to ask about how many complaints the contractor made and how often they needed to do something to make it right (regardless of fault). It’s just a fact that some people are more prone to complain than others. Make sure you know who you are dealing with. It’s especially helpful to pull the Better Business Bureau report on contractors applying for credit from you. What type of complaints are their customers making about them? How frequently are they getting made and how are they resolved? There is a direct correlation between how many complaints your contractors get and how many they will make up the chain to dealers like you.
Fraud
Fortunately, many dealers have the benefit of knowing everyone that buys from them. The larger you get, though, the more problematic fraud risk can be. Is the applicant really who they say they are? An application perfectly filled out, combined with a super-prompt reference, is a warning sign that something may not be right. We find that bank and trade references come back in their own time and rarely instantaneously. Another helpful tool, especially if you don’t know a particular contractor well, is to check Google Maps to verify a business address or to confirm that the delivery address and the bureau actually match. Usually you can figure out if they are real or not. While the information on a credit application is nearly the same across all dealers, the rigor of what happens afterward differs widely. The extra effort and discipline that sophisticated dealers invest, ensures they get the full picture of the customer and helps protect them from risks beyond just bad debt. Make sure you are investing enough and getting the most out of your process. – Scott Simpson is president and CEO of BlueTarp Financial, which helps dealers grow and protect their business by managing their credit program. Contact him at ssimpson@bluetarp.com. June 2015
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ONE on One With Bob Tellier, president of Orchard Supply
New chief charts course for Orchard
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ERCHANT M AGAZINE publisher Patrick Adams sat down with Bob Tellier, president of San Jose, Ca.based Orchard Supply Hardware, a division of Lowe’s. Having had previous retail experience with True Value and as a longtime financial consultant, Tellier shares his view on the evolving industry and how change is inescapable.
Merchant: So, how’s business? Tellier: Business is great! We’re seeing a great spring. Unfortunately, our nurseries have been impacted by the drought. The good thing is that we are a full service hardware store, so paint, hardware, electrical, and plumbing departments are doing very well. The economy as a whole is picking up and California is very busy. We are experiencing a change in many of our “neighborhood” themed stores as we work to transition them from the old format to the new one. We hope to have 80 stores by next year with over 60 of them designed with the new format. We are working to evolve all stores, even those going back to the ’50s and ’60s. We are seeing double digit increases throughout our stores and it’s very exciting. Merchant: How does the future look for the industry and for Orchard? Tellier: There’s always going to be a need for hardware stores like ours. We’re really pushing customer service more. People need help and reassurance when buying a product. It has to involve sort of a whole service model. There are two ends of the spectrum. You’ve got the small independent stores, which I am very familiar with from my True Value days. Their key is customer service. They know their customers, they have a small format store. Then you have depth and breadth of assortment in the boxes, where the customers are on their own. We’re that white space in the middle. We nailed the two together. We are retro yet futuristic. We are trying to find that balance between what’s old and what’s new, so we can capture all ends of the spectrum. We felt that no other stores were finding that middle ground. They are either going to try to outbox the big box stores or out-service the independent. We’ve got something I think is completely unique in a descent-size store that allows us the ability to carry the right assortments and still have the customer service that we believe is the key to the business. Another key to our strategy is the people within the store. They have more product knowledge, more experience, and better training.
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Merchant: How do you efficiently scale a model that calls for uniqueness at the store level, considering different demographics that exist? Tellier: That’s the secret sauce to our business. That’s what I call micro-assorting. We are opening a new store in the next few months in North Beach San Francisco and that’s a completely different demographic, a completely different urban environment that requires our merchant teams to understand their customers and the area. We’ve spent a lot of time in the neighborhoods. We listen to the neighborhoods, we hire from the neighborhoods, and we have an open discussion with all who are involved. What I do is, I invite local contractors to contractor breakfasts. We sit and chat and, after, walk around each department and ask them, “What are we missing?” When we enter Seattle, San Diego, and other areas, we’re going to have to go through the same process. Merchant: Since the acquisition of Orchard Supply by Lowe’s, how have you made the relationship between both companies work? Tellier: Orchard Supply is completely autonomous. We utilize some of their legal help and it’s very helpful, but Orchard Supply is pretty much self-sufficient. We were bought for a very specific reason, because we are not Lowe’s. They agree with our strategy, they agree with our direction, and that’s symbolic that Orchard will be run by Orchard. They’ve offered a lot of support. Having them with us makes many things go easy. Merchant: What trends do you see ahead in the industry that are going to influence the market? Tellier: More people than ever are using the internet for research. We realized we’d be doing ourselves a disservice by not putting our entire lineup of products online. We didn’t realize that the information that was displayed online was setting an impression in the customer’s minds. People thought we had a limited amount of products, when really we had thousands. Merchant: Considering how the housing market has changed and how much it will change in the future, how do you look out five, 10 years in the industry, and see Building-Products.com
Merchant: Do you feel an added weight of being a company that has carried a legacy for so long? Tellier: That’s a weight on my shoulders every day. Orchard goes back to 1931. The roster of associates who carry over 30 years of experience would go many pages in a book. We celebrate the history and the loyalty, not only of our associates, but of the customers. I feel it every day. But we don’t have to be the same Orchard that we were in 1931. We must change and still stay true to that history.
how Orchard Supply fits in? Tellier: Solution-based. Where there is one challenge, there is also an opportunity. Storage is a huge issue. We are really focusing on storagespace-saving solutions. Even in our outdoor patio furniture, we are developing more items, beautiful pieces of furniture that fit in small spaces. We are continually coming up with different solutions to fit into small spaces while still catering to the lifestyle in places like California, where outdoor living is so favored. We are adjusting. Again, it’s all about having that connection with the customer base and knowing what they are looking for. Merchant: Will Orchard always be a regional player or are there thoughts of national expansion? Tellier: Our mission is to be America’s neighborhood hardware and garden store, focused on paint, repair and the backyard. We certainly think our model works in many areas beyond California. Merchant: What’s one lesson you’ve learned that the industry can benefit from? Tellier: The only thing constant is change. You can’t guess where things
are going to go in the future. You can always expect change—in the environment, in our customer base. You never know what life will give you, so you have to be prepared, flexible and ready to adjust. Four years ago, we realized if we kept doing what we’re doing, we wouldn’t be here for 84 more years. You have to build that flexibility into the culture. You have to have that thirst for change, that willingness. It’s important to have a workforce that realizes change is inevitable.
Merchant: You’ve been in many other industries, you’ve had plenty of opportunities. What about this industry keeps you here? Tellier: I really love product. Hardware is great because of the breadth of products that we carry. I like the complexity and it’s great to solve people’s problems. Where can you find another industry where you can touch so many different aspects of people’s lives? This is just a slice of the interview with Bob Tellier. For the full transcript, visit www.building-products.com.
simplify
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INDUSTRY Trends By Doug Mucher, CertainTeed
Cellular PVC proves a lovely, stable option for exterior trim
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ORE THAN AN ACCESSORY, exterior trim is an essential component to the construct of a home. Its beauty provides the finishing touch to a home’s curb appeal. Its brawn helps seal out wind and moisture around window and door openings and at corners. It is found on the exterior of every home no matter the cladding. Wood, of course, was the original material for exterior trim. However, developments in material science have given wood a run for its money. PVC trim entered the market in the 1970s and has successfully been integrated into the architectural specifications of vinyl-clad homes ever since. More recently, the industry unveiled cellular PVC trim, which, like wood, can be used alongside any sort of cladding, be it wood, fiber cement, brick, stucco or vinyl.
New Exterior Trim Gains Acceptance
Cellular PVC exterior trim is more like its wood counterpart than any other alternative building material. It is solid like wood. It cuts like wood. It can capture the natural texture of wood. Yet unlike wood, cellular PVC is easy to maintain over the long haul. And that is a feature builders and their home buying customers have come to really appreciate. It is in fact because of its inherent no-hassle upkeep that builders have increasingly been selling cellular PVC exterior trim as an upgrade feature to homebuyers. With this new material, homeowners worry less about rot or woodboring insects or really even repainting like they would have to do with traditional wood trim. Plus, manufacturers of cellular PVC exterior trim have developed a broad range of trim profiles in smooth and woodgrain textures that can combine into design elements that enhance exterior aesthetics. Homebuyers like that and are willing to pay upfront for it. Let’s face it, no one has much interest or time for ongoing maintenance to their home’s exterior trim. Fortunately this material gives people an out for this chore. It’s an easy upgrade to be sure, and a design detail that sets builders apart from their competition as well. Likewise, contractors have embraced cellular PVC as a
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FINAL TOUCH: Exterior trim is a go-to product for enhancing the curb appeal of a home and PCV trim in particular has been a profitable alternative building material. (Photos courtesy CertainTeed) Building-Products.com
At Royal Pacific you’ll pay no more, but get extra. We guarantee it.
Hi-borÂŽ brand treated wood is a borate treated wood product designed for interior house framing in Hawaii. Hi-bor treated wood resists attack by Formosan and subterranean termites and numerous household insects and pests, as well as fungal decay. Hi-bor borate treated wood is also backed by a 20 year limited warranty*. SMOOTH EDGE finishes are among some of the biggest trends in trim.
material of choice for exterior trim. The material, like wood, allows millwork craftsmen to fully express their own creativity, attention to detail and commitment to quality. Using their own traditional woodworking tools, these contractors can cut, mill, shape and rout the cellular PVC product. They typically find that milled edges are smooth and cut edges are very close to factory finish.
Trends in Trim
Industry-wide, the biggest technical trend in trim right now is the addition of the smooth edge finish on the edge of trimboards. Most major manufacturers seal the edge of trimboards to keep dirt from collecting on the surface where the cells used to be exposed. As a result, the board width also becomes very exact. This saves valuable time in cleaning and painting prep on the job site. In the same vein, some manufacturers are extending their stock of cellular PVC exterior trim to include preengineered components that further aid the installation process. Some have gone so far as to design specialized shrink-wrap packaging that assures the trim arrives on the jobsite clean and ready to install. Because cellular PVC trim is gaining traction, there are several products on the market from which to choose. Look for quality brands that offer trim with authentic wood-like textures as well as designs that are easy to install. It is also important to opt for products that are environmentally sustainable. Find trim that is comprised of recycled content and that makes an independent life cycle assessment (LCA) publicly available. This assessment is a cradle-to-grave review of raw material acquisition, manufacturing, transportation and distribution, installation, use, maintenance and end-of-life recycling and final disposal. Without doubt, wood can be turned into beautiful exterior trim; however, its ongoing upkeep is a consistent issue among end users. Cellular PVC is a true alternative that provides authentic wood-like aesthetics and installation features that make jobsite work easier. All this, and over time it requires a fraction of the maintenance. – Doug Mucher is marketing manager for CertainTeed Outdoor Living and Trim. Reach him via www.certainteed.com.
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FireProÂŽ brand fire retardant treated wood is treated with a patented formulation that contains no phosphates and has been shown to exhibit exceptional fire performance properties without compromising other critical engineering properties such as strength, durability, corrosivity, and hygroscopicity. FirePro treated wood is also backed by a 50 year limited warranty*.
Advance GuardÂŽ borate pressure treated lumber is recommended for sill plate, furring strips, joists, studs, roof trusses, blocking, rafters, beams, and other framing applications. Advance Guard is also recommended for fascia, trim, wall sheathing, roof sheathing, and sub-floors. Advance Guard borate pressure treated lumber is also backed by a lifetime limited warranty*.
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%JLF 3PBE t 3BJOJFS 03 t 'BY * See product warranty for details. Hi-borŽ, FireProŽ and Advance GuardŽ treated wood products are produced by independently owned and operated wood treating facilities. Hi-borŽ, FireProŽ and Advance GuardŽ are registered trademarks of Koppers, Inc. Š10/2014
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PRODUCT Spotlight By Kayla Kratz, Boral Roofing
Clay and concrete roofing offers strong protection
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materials, there are various performance attributes to consider when making a selection. Depending on the climate, some materials are more resilient to inclement weather and storm events. In particular, clay and concrete roof tile is a product segment that showcases superb durability, energy efficiency, and long-term performance in the wake of inclement weather without having to make the trade-off between aesthetics and performance. CROSS ROOFING
non-combustible, with many products receiving Class A fire-rating, the highest fire resistance rating for roofing. The ICC Evaluation Service, indicates that the Class A roof tile is able to withstand a higher level of fire exposure originating from sources outside the structure.
Geologic Content, Local Sourcing & Recyclability
Clay and concrete roof tile consist of naturally occurring geologic material that is locally sourced near the place of manufacture. Sustainable by design, clay and concrete roof tile is natural therefore recyclable at the end of the product life. However, clay and concrete roof tile continue to advance in engineering and design for even more increased performance.
Fire Threat & Prevention
One of the most vulnerable areas of the home is the roof where burning embers or branches land and spread quickly into the building. Although some geographies may be more vulnerable to wildfires, the threat of fire is pervasive and fire can start from several causes. Protecting the building envelope in the event of a fire can be achieved by controlling, or reducing the sources of ignition. The roof is a critical component to provide protection from fire spreading to the rest of the building. Clay and concrete roof tiles are
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MADE FOR PROTECTION: Clay and concrete roofing is known for its exceptional durability during fires and inclement weather. (Photo: Boral Roofing class 4 Hail Rated Concrete Tile)
Hail Risk & Testing
Hail balls can wreak serious damage. Select concrete roof tile products offer up to a Class 4 hail rating. Class 4 rated products undergo impact resistance testing in accordance with the FM 4473 standard. Class 4 hail rated tile withstands 2-inch ice ball impacts shot from a cannon within a 5-ft. distance at speeds up to 70 miles per hour. Hail rated tile is certified through the Roof Covering Impact Certification Program, which is sponsored by Architectural Testing, an
June 2015
independent testing laboratory accredited by multiple national agencies.
Frost Resistance
Regardless of the size of frost crystals, they pose danger to the roof, subjecting it to extreme temperature variation and potential water absorption. Grade 1 clay tile provides increased protection from frost conditions. The American Society for Testing and Materials Grade 1 rating indicates the highest certification, demonstrating higher resistance to frost and water absorption. Grade 1 clay tiles and freeze-thaw resistant concrete roof tiles both pass stringent testing which tests the product to endure 50 freeze/thaw cycles without the material degrading or cracking. The testing is designed to mimic frost conditions and, when a product passes the testing, it is proven to perform better than other alternatives in colder regions. Each climate zone is unique in the weather patterns that can affect the longevity of the home. These environmental events must be accounted for when structures are built and maintained, as any roof product needs to be evaluated for its ability to withstand the elements critical to the geography. But regardless of climate zone or the likely storm conditions on the horizon, there’s no doubt that clay and concrete roof tile systems should be considered. These materials are ecofriendly, durable and proven to protect in serious weather conditions. – Kayla Kratz is product manager with Boral Roofing. Reach her at kayla.kratz@boral.com. Building-Products.com
INDUSTRY Trends By Eric Green, Askuity
Why retailers are investing in data sharing solutions W
ALMART HAS BEEN an innovator with technology for over 30 years. Sharing data with its vendors through its proprietary Retail Link vendor portal has transformed the way Walmart and its vendors do business. With Retail Link, Walmart empowers vendors to manage performance at the store and SKU level, which contributes significantly to Walmart’s market success. In the home improvement channel, the Big Three— Home Depot, Lowe’s and Menards—have all taken their cues from Walmart in building their own retail data sharing solutions to improve collaboration with their suppliers. Home Depot, for example, provides its suppliers with point-of-sale data through its HomeDepotLink vendor portal, while Lowe’s vendors enjoy similar functionality through Lowe’sLink’s VendorDART. Yet, even with the quantifiable success the Big Three have experienced (highlighted by increased sales, faster inventory turns, and reduced out-of-stocks), the fact remains that most LBM, home improvement and hardware retailers don’t have the multi-million dollar budget required to build an equivalent data-sharing solution. So how can your business follow in the big boys’ footsteps without reinventing the wheel? Fortunately, the recent emergence of cloud computing and Big Data technologies have created options for retailers that previously didn’t exist. Where even a few years ago, the only way to capture the benefits of Retail Link was to custom-build a Retail Link-like portal, today there are cloud-based platforms that are deployed quickly and easily without the need for custom software, expensive implementation services or a data center. The key to getting your team onboard with the idea of deploying a cloud-based retail intelligence solution rests in making the business case that demonstrates the return. By presenting the proper framework regarding the value of sharing inventory and sales information with your vendors, everyone can get on the same page regarding the initiative, bringing the company closer to achieving the benefits that Home Depot has been enjoying for the past five years. There are three key areas to examine and quantify when building your business case: cost savings, cost avoidance, and revenue.
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Cost Savings
Every business wants to save money, and with the right retail intelligence platform, the business will be able to do just that. Cost savings can be broken down into two main areas: infrastructure cost reduction and operational improvements. Infrastructure Costs. For retailers currently running “old-school” BI reporting solutions for internal and vendor use, there is an annual software and hardware maintenance cost as well as a personnel cost to run the reports and maintain the platform. By partnering with a retail intelligence platform company, these costs would be eliminated. Annual software maintenance can run between 15-20% of up-front software licensing, while conservatively estimated labor costs can run from 1 to five full-time employees for a mid-sized retailer. Operating Improvements. There are two key ways retailers can improve their bottom line through inventory optimization: (a) reducing out of stocks and (b) increasing inventory turns (or improving capital efficiency). Reducing out-of-stocks. Industry studies have put the cost of out-of-stocks at 4% of retail revenue. While sharing store-level inventory data with vendors won’t eliminate out-of-stocks entirely, the ability for vendors with increased visibility to pre-empt potential problems at store-level will help bring the incidence of out-of-stocks down. Building-Products.com
A conservative estimate of a 10% improvement on the lost sales revenue for a retailer with annual revenue of $500 million amounts to $2 million. Multiplying that by retailer gross margin percentage gives a net incremental improvement that flows directly from better supply chain visibility. Increased inventory turns. When less money is tied up in slow-moving inventory, money is freed up to generate returns elsewhere. Effective use of store-level, SKU-level data enables the identification of average inventory levels represented by slow moving goods. Reducing that number through optimized on-hand levels to a level that doesn’t impact sales but does meaningfully limit idle stock can free up significant dollars. Those dollars multiplied by the retailer’s cost of capital will give you a target for improved capital efficiency.
represent a good portion of your revenue and margin, or who might be strategic in the sense of offering a source of differentiation to the retailer. It’s easy to have the allure of the short-term dollars from a handful of larger vendors distract a retailer from the primary objective of the initiative: to improve key operating metrics across the entire business. Incremental Promotional Dollars leading to Sales. Other benefits that would fall into this revenue bucket would be the ability of the retailer to attract more vendor marketing dollars that in turn drive more sales. With the increasing shift of vendor marketing programs to retailerbased, “shopper marketing” programs, vendors are prioritizing their dollars with retailers who can provide them with the information they require to properly manage and measure those programs.
Cost Avoidance
Understanding The Value Drivers
For retailers currently without a vendor reporting platform who are looking to build their own reporting infrastructure, there is a one-time cost to either custom build a solution or buy and configure commercial software. All-in costs for this type of initiative can range from $250,000 to over $10 million once software licensing, implementation services, internal resources and hardware are considered. Consider too the on-going annual maintenance costs (15-20% of the license fees), the internal resource requirements to support the function and all other ancillary costs to manage the reporting infrastructure. By moving to a cloudbased, Software-as-a-Service platform from the get-go, these expensive start-up and maintenance costs are avoided.
Revenue
Vendor Fees. A retailer’s data is very valuable to its vendor partners and these vendors are in most cases very happy to pay for it. Smart vendors know how to use this data to drive sales, limit out-of-stocks, optimize their marketing and promotional spend, and manage their inventories. Point-of-sale data is the lifeblood of any product vendor’s business and making effective use of this information is a key success factor for winning at retail. Accordingly, retailers have an opportunity to monetize the information that they are providing to their vendors. Moreover, when the information that retailers are providing goes beyond raw data but includes the use of an advanced analytics platform from which to derive insights faster, there is even more value to monetize. After all, a tool that helps surface actionable insights quickly and easily vs. expecting vendors to sift and sort their way through spreadsheets of data is going to produce better business outcomes at the store execution level. In addition, if the tool to analyze the data is being provided, this eliminates the need for the vendor to spend money on their own third-party tools and resources. In other words, the greater the value provided, the greater the opportunity for monetization. Whereas some industry data services are cost-prohibitive for all but the largest product vendors, we believe that you capture the most value from the data sharing initiative if it’s accessible to all vendors. A nominal fee applied across the entire vendor base will democratize the initiative and ensure that the business benefits that accrue from supply chain collaboration—where the real monetization opportunity is—are realized by all vendors and by implication all retailer departments and volume. Care must be taken to not price the program out of the reach of your mid-sized and smaller vendors who might Building-Products.com
Retailer-vendor collaboration enabled by store-level vendor visibility has proven to be a key enabler of growth and success of the leading big-box home improvement retailers. The more information shared with vendors, the more partnership-like the relationship between retailers and vendors, which in turn leads to better joint planning, execution and performance. Consider the recent success of National Gypsum, a top supplier of gypsum board. Through an organization-wide commitment to investing in retail analytics with its biggest retail partners, National Gypsum has evolved from “drowning in data” to proactively addressing potential store-level inventory issues and optimizing localized product assortments with their retail partners. Ultimately, this focus on retail analytics has enabled the company to position themselves as true category partners with their key home improvement retail accounts, transforming the retailer-vendor relationship from a transactional one to one that is much more collaborative and win-win. There are several routes LBM retailers can take to get to this kind of vendor collaboration, some more effective than others. In all cases, however, it takes a good understanding of the value drivers that underlie the business case for such an initiative; the above summary framework is a good start to help retailers think through these. – Eric Green is CEO of Askuity, a cross-retailer big data analytics platform that connects retailers and product manufacturers. Reach him at info@askuity.com.
RETAILERS can realize significant benefits in sharing sales data with their vendors. June 2015
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FEATURE Story By Greg Mooney & Jessica Arant, DMSi
An enemy among us Innocent employees may pose the biggest security threat
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HE WEAKEST POINTS in any security system are the people who use it. This explains a growing trend among cyber criminals. Instead of attacking networks directly, they’re targeting the people who access them. It’s much easier to con a person than create a computer virus. Hackers don’t have to break through your firewall, because employees are letting them in the front door. Malware like viruses and bots is a familiar problem. Internal attacks pose an entirely different kind of danger. And most businesses are completely unprepared.
Worse Than You Think
Here’s the real problem: Most business networks have weak or nonexistent internal defenses. The emphasis has always been on external measures like firewalls. Good anti-virus software is expensive, and executives didn’t see it as a huge priority (“because we have such a good firewall”). Essentially, people put giant locks on their front doors and called it good. Which means if a hacker can sneak past the firewall, there’s likely very little to stop him from stealing your data, crashing your system, and bringing your business to a screeching halt. This is why the discussion about cyber security needs to change. Businesses have to look beyond keeping the bad guys out and consider what happens once they get in.
The Options
Don’t assume your current IT staff can take on this threat. Searching for and responding to internal breaches is more labor-intensive than maintaining a firewall. System administrators don’t have time to run counter-hack operations and support the company’s IT needs. If a fulltime cyber-security specialist isn’t in your budget, then you need to consider other methods for improving data security. Good strategies include using the best antivirus software that management will buy, putting more user restrictions in place, prohibiting USB drives, and teaching employees good cyber ”hygiene.” Perhaps the most effective strategy for protecting your data is to move it from your private server to the cloud.
How It Works
Hackers have a host of methods for conning their way into a network. Email is still a very effective method for delivering malware. (You’d be surprised at how many distracted executives will open a file called “Q1 Past Due Accounts.”) Messages may use techniques like baiting or phishing (pronounced “fishing”) to trick people into handing over passwords and account numbers. Some hackers target employees’ personal computers, which tend to have weaker security. Then they sneak into the company network when the employee logs in remotely or brings a corrupted USB drive into the office. Mobile devices can contract malware through apps and unsecured networks (such as the free WiFi at airports). All of these methods give cyber criminals a way to slip past the company firewall without raising an alarm.
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The Cloud Bank
The building materials industry has been very slow to adopt cloud-based solutions, in part because many executives don’t trust them. Letting a third party manage their data at a separate location feels risky. Keeping everything in-house, on their own servers, in an environment they control feels safer. But unless your company has a fulltime cyber-security specialist, using a private server is significantly riskier than using the cloud. A good way to think about it is to compare your data to money. Keeping your data on a private server is like keeping your money in a shoebox. You have direct access, but so does anybody who breaks into the building. It’s easy for them to grab that shoebox and walk out the door. When Building-Products.com
hackers get past your firewall, they can potentially trash or steal anything on your network. Accounting records, operations data, and customer information are up for grabs. Using the cloud, on the other hand, is like keeping your money at a bank. The funds are still available, but if a thief breaks into your office, there’s nothing for him to steal. He can’t get to your money because it’s at the bank. And breaking into a bank is an entirely different matter.
Still Not Convinced?
Some people are skeptical that the cloud is safer. After all, if a corrupted laptop can infect your entire network, what’s to stop that virus from spreading to your hosted data. This is a fair question. The simple answer is the cloud is different from traditional networks. It offers multiple layers of security, far beyond what most businesses can afford on their own. The first line of defense has to do with access. A local network typically has many points of entry, because it’s used by many different software applications. When employees check email, create sales orders, track inven-
tory, or enter payments, they are storing all of those records in the same place. Applications on a local server are sort of like offices on the same hallway. Applications in the cloud are more like guarded buildings on separate roads. Let’s say a hacker gets past your firewall. If you store all of your data locally, he can walk up and down the “hallway”, from your email to your accounting records to your customer files, because everything is connected. If you store your accounting data in the cloud, however, he can’t crawl from your email to your billing records because they are in separate locations. In order to get to your accounting data, he has to leave the hallway, exit your building, find the right “road,” and then get past all of the guards. This brings us to the next line of defense. If data is stored in the cloud, it’s on a server (or multiple servers) at a data center. Data centers make sure your information is accessible to you and only you. These facilities invest heavily in sophisticated security tools and anti-virus software. They also provide 24/7 monitoring by cyber-security experts who constantly walk the (vir-
tual) perimeter, checking for weaknesses and scanning for suspicious activity. (All the things system administrators don’t have time to do.) Let’s go back to the shoebox vs. bank analogy. Your only way of protecting that shoebox is to lock your front door. The bank, on the other hand, has locks on the door, cameras in the ceiling, and German Shepherds patrolling the lobby.
Next Steps
Unfortunately, there aren’t any security patches for human behavior. No matter how many rules a company puts in place, somebody will inevitably slip up. If you want a sobering conversation, ask your IT manager what defenses your network has against an internal attack. Find out which parts of your operation would be affected, and how long your business would be down. Take a hard look at the worstcase scenario, and start planning the best possible response. – Greg Mooney is the director of application operations & systems engineering and Jessica Arant communication coordinator for DMSi Software, Omaha, Ne. Reach her at jarant@dmsi.com.
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June 2015
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MARGIN Builders By Paul Hansen, ETemplate Systems
3D as-built measuring improves design & installation
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HE DESIGN, fabrication and installation of architectural surfaces and components require both skill and knowledge. Parts of this process are tasks performed by people and parts are based on tasks performed by tools. How effective and efficient the overall process will be is determined by the quality of the data used in the process, and how well the data flows between processes. Everyone in the supply chain wants their projects to go smoothly. The contractor, the architect, the material supplier, and ultimately the customer all want deadlines and budgets to be met. When the project runs smoothly, everyone looks good, and ultimately the end product looks good. This helps bring more business to the contractors, architects and material suppliers. The as-built measurement process from the jobsite greatly impacts the project. The jobsite work order, specifications and design layout define what needs to be measured at the site. Let’s look at the flow of information from the jobsite through the process. (1) Measure relevant features (walls, windows, doors, soffits, level, plumb, scribe). (2) Enter data into design system. (3) Use jobsite layout and irregularities to design surfaces or components in design system. (4) Send part designs to fabrication. (5) Install fabricated system into jobsite. When using manual measuring methods, the data tends to be based on assumptions and is incomplete due to
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the complexities of both the jobsite and the measuring process. Wall angles are assumed to be 90°, windows and doors are measured as simple rectangles. Measuring of curves many times must be done using a physical template. Measuring of plumb, level and scribe is done sparingly, if at all. The measurements are written down to be entered into design software. This process is usually incomplete, is quite tedious, and is error prone with transposed numbers, data entry errors, and the like. Due to these limitations of the manual measuring process, the design, fab-
LOOKING TO THE FUTURE: As technology advances, the more we will see products evolve like Elaser Xpress by ETemplate Systems, made to easily measure the jobsite more efficiently.
June 2015
rication, and installation processes are also affected. The design process will have to take into account that the data is limited and allow for modifications to take place at the jobsite for imperfections not determined during the measuring process. This obviously affects the installation process as well. This can also affect the fabrication process with the necessity of creating filler pieces or the need to do some “final fabrication” onsite during installation. As with many processes, the introduction of technology, hardware and software, can greatly enhance the jobsite measuring process. The use of a discreet point 3D laser measuring system, such as ELaser, makes the measurement task a one-man effort and easily measures the jobsite geometry as well as plumb, level and scribe situations. During the data collection of accurate measurements, the system creates a 3D CAD model, eliminating any errors bringing jobsite data into the design system. 3D laser measuring allows the user to create the CAD model at the jobsite. The geometry created is automatically formatted to be easily used by the design software. Imperfections at the jobsite along with out of square situations are easily measured and documented. Measuring out of plumb, level and scribe details can also be measured and documented by the system in the CAD model created at the jobsite, eliminating costly errors. With a comprehensive data set of the as-built measurements of the jobBuilding-Products.com
site taken by the 3D laser, the design process is streamlined. The data is already formatted for the design software, and the operator can have confidence that the design is working from a true layout, eliminating the need to design in a “fudge factor” for the installation process. The installation is also made quicker and easier due to the accuracy and completeness of the design. Scribes are done, shim levels are known. Using the layout function of the laser, the installation team can easily locate start points, drill points for mounting, level locations across surfaces, and plumb points from ceiling to floor and floor to ceiling. All of this enhanced data and knowledge virtually eliminates doing any “final fabrication” on the jobsite. Another type of 3D laser, called a cloud scanner or room scanner, has also become more popular in recent years. The cloud scanning process uses a 3D laser that rotates in the center of a space and collects a dense grid of points. Depending on the size of the space being measured, the scanner will collect millions to hundreds of millions of data points. The prime benefit of this process is the amount of data that can be collected fairly quickly. The issues involved in this process for the fabricator is currently several. First, the amount of data is so great that it requires specialized software to manipulate the data. Second, the data collected will not necessarily represent the features that need to be measured, such as corners and edges. This means the designer needs to make interpretations from the data to create fabricatable geometry. And third, the cost of this technology is about an order of magnitude greater than the discreet point technology, making it a difficult acquisition for most companies. Over the coming decade, this technology will certainly become a bit more affordable and user friendly to the fabrication market. As with many trades, finding skilled labor is very difficult. The addition of technology like the ELaser will streamline your processes with efficiencies and cost savings. This will give you more consistent results, allow you to bid jobs you may have felt were beyond your scope, and ultimately bring more to your bottom line. – Paul Hansen is president of ETemplate Systems. Reach him via www.etemplatesystem.com. Building-Products.com
June 2015
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COMPETITIVE Intelligence By Carla Waldemar
It’s showtime!
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Knudson Lumber, Ellensburg, Wa., of being a traditional, buttoned-up operation. You won’t find store manager Marty Shelley in a business suit. (Clown suit, maybe.) Trying to envision his presence as we chat on the phone, he invites me to picture a character rom Scooby Doo. “My shaggy mop of hair’s a joke around here.” And that’s just the least of the fun at Knudson, starting with the outfit’s Facebook page, for which he writes a twice-monthly column that, he swears—he promises!—has “nothing to do with business.” Instead he addresses life experiences folks can relate to (“It’s me, sounding stupid”). But people seem to like it and add comments. They text me, they email. It’s unbelievable!” There’s no advertising on the page per se, but that’s the charm of the best advertising of all, word of mouth. And it’s over the top. Marty, who’s been here 24 years now, did not seek— never mind expect—this career path. The original plan was to gain fame and fortune as a rock ’n’ roll drummer. But when down on his luck in that pursuit, his mother suggested he try things out in Alaska and gave him a plane ticket. One way. He decided “why not?” and found a job in Juneau as stock boy in Don Abel’s yard. A couple of years later, he’d become its manager. But he missed his home in Ellensburg, so he sent a resume to Knudson Lumber’s owners, Robert and Cindy Knudson, who’d been hands-on but were ready to ease off, and the rest—all together now—is history. Says Marty, “If you’d told me then I’d still be in the lumber business 20 years later, I’d never have believed it. But here I am! And not a day goes by that I don’t have a blast.” The staff will second that. The Knudsons, thoughtful small-business owners, provided 401/k plans and insurance and lots of intangible reasons to stay put, so folks stayed on. “They never thought of themselves as ‘lifers,’” explains Marty of his 20-plus full-timers, “just ‘a nice place to work.’ And I’m the noisiest one, by far—definitely the loudmouth. We have a good time.” But don’t get the wrong idea. Life here is not always a bowl of Rainier cherries. Ellensburg, pop. 18,000, lies 100 miles east of Seattle, where the terrain of Central Washington is “very redneck, very conservative,” Marty states. “But this is also a college town—the home of Central Washington University—which contributed the opposite, so it balances out. And we keep very busy. We sell a lot of big house packages. A lot of spec homes are being built in subdivisions (parents build them for their kids in school), and for people who commute over the mountain pass to Seattle—people who are tired of life in the big city. Plus, we have way-better weather!” That, and O ONE WOULD ACCUSE
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farmers moving into town and needing housing and the college itself, which keeps on growing. But there’s no lack of competition for a piece of the pie. “Back in 2007-2008, before the bust, people were going crazy around here, putting up big houses.” That attracted the boxes, which set up shop within driving distance, causing Marty to lose some sleep. “Close to 70% of our business is with the pros, so I worried that they’d switch to the big boys—and we can’t compete with them on price. But,” turns out, “we were hardly even bothered. I can’t think of a customer who left us for the other stores. We take good care of our contractors, and they’re loyal. We offer betterquality lumber, even if you pay a little more for it.” Bottom line: “We try like mad: everything from really good delivery service to lots of special orders. “What I like,” he declares with a victor’s pride, “is when a builder—or homeowner—has a friend who’s a competitor, so they buy from someone else. But, halfway through the project, they’re back, buying everything from us.” Knudson repays that loyalty on Contractors Night, featuring an open bar and “really good food” for hundreds of pros and their wives. “Our vendors tell us the event is one of the best ever, second to none. And our pros call ahead to make sure they’re on the list. By now, we’re dealing with the second generation—the kids of our original customers.” Knudson knows how to put on a party for its DIY brigade as well, starting with Ladies Night. “It’s nuts. It’s crazy,” states the crazy-maker himself. “We close at 5:30, then re-open at 6 with wine and cheese for the ladies. Men are kicked out, but women come in with lists from their
WASHINGTON STATE lumberyard is constantly putting on a show for its customers—whether it’s a ladies night… Building-Products.com
husbands. I look back on years when you never saw women in a lumberyard, and now, two-thirds of our employees are women. “At the event, we see women who’ve never been in here before, and they say, ‘We didn’t know you had….’ The Garden Club presents demos on transplanting flowers, and there are prize drawings every 15 minutes. Cars are parked all up and down the highway. It’s noisy, it’s fun, and everybody’s having a great time.” Birdhouse Day is another riot scene, this time for kids. “All summer,” Marty explains, “we take our twists [boards] and saw them up and make a kit, with a dowel and nails. Then, near Christmas, hundreds of kids with their families are sitting on the floor, putting the kits together. There’s Santa Claus, too, and our employees bring in cookies—four hours of total chaos—and we do it all for free.” Not chaotic enough for you? Then swing on over to the fairground for the annual nail-driving contest: beams on haystacks on a stage with contests for every age group: kids pounding roofing nails, grown-ups pounding 10-penny sinkers, with prizes and ribbons. “It’s a show in itself, and”—no surprise—“I’m the emcee—hundreds of people laughing. It’s so chaotic, and it gets bigger every year. The
… OR A BIRDHOUSE DAY …
first year, I had to strong-arm the staff to help out, but now, they can’t wait. (I give them each $20 for food, too).” Fun, for sure. But be assured, the frolics are driven by a serious mantra. “We use all this stuff to become part of the community. The older I get (I’m 53), the more I understand how important that is.” And a funny thing happened on the way to the giveaway of dog treats on International Dog Appreciation Day. Sales of dog food skyrocketed. “Okay, we’re a lumberyard, but after the owner’s dog had cancer, we discovered a line of organic dog and cat food. When I saw the price, I swore, ‘Nobody’s gonna buy that,’ but people come from a hundred miles away. This section has really grown.” Yet it takes more than fancy pet food to lure repeat business. It’s all about treating customers like valued guests. To get that message engraved in the minds of his employees, Marty tells them, “You’re the reason people shop here. You’ve got to put the customer first.” And there are rules for that. “You’re not allowed to point here,” he says. “Instead, we take customers to the department they need.” Slip up? The whole crew (led by guess who?) will yell, “NO POINTING!” “It’s a joke Building-Products.com
… OR A NAIL-DRIVING CONTEST …
now,” says the boss. “Another thing I tell our people is, ‘If I see a customer carrying moulding 8 feet tall, I grab their stuff and take it to their car. I tell our staff, ‘Don’t ask. They’ll tell you, “No,” so just grab it.’ That’s how I teach our people to serve.” Another rule: “By the time you walk from the door to the front counter, you’re greeted from two to eight times. Okay, I’m in my office in the back corner, but I can see the front counter, so I scream, rude as hell, ‘Hi, Frank!’ (When I go to other stores, it can take five to 10 minutes before I’m greeted. I’m thinking, ‘Whoa! What is this?’” Ensuring that superior kind of customer service is never a walk in the park; but consider, too, this added challenge: This is a small, college town, where each year, a new handful of students are hired to help out during the busy summer season. There’s a training manual for guidance (how to cut lumber, how to mix paint, etc.), but Marty knows he has to ‘train’ the old-timers in how to accept and aid the new kids as well. “It can be really, really hard. Customers don’t always want the newer people to help them. I tell the regulars, ‘There’s not a job in the world where you have to learn so many different things and know what you’re talking about. Don’t forget what it was like not to know things. There was a time when you were new, too.’ We realize that we, also, had to be trained. We want to keep all the staff happy, and that doesn’t just involve a paycheck.” Marty himself acknowledges that he may have made a mistake or two over the years. But owners Bob and Cindy (ceding now to their daughter, Renee Kraft) “have been the greatest people you could ever work for. I say to them, ‘I’d be fired anywhere else,’ but they always let it roll off. Renee, too, listens—doesn’t make rash decisions. I can say what I want, even pushing the wrong buttons, and I don’t have to worry.” Nor do they. The payback is priceless. Carla Waldemar cwaldemar@comcast.net June 2015
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OLSEN On Sales By James Olsen
Doubling down to double up
I
blackjack “straight up,” the dealer/house has an 8% advantage, sometimes called the edge. This edge is gained because the dealer plays last, so many of the players will bust before the dealer, ensuring the house a win regardless of the dealer’s outcome. Playing “basic strategy,” making the best statistical play with any combination of dealer and player cards that flop, can decrease the house’s edge to only 0.5%. It takes time to learn “basic strategy,” as the intuitive play is often not the best play. This 0.5% edge can be further diminished by “card counting,” which, while not illegal, is frowned upon by casinos. Card counters are banned from play if caught. One of the biggest advantages blackjack players have is they can, when the odds are right, “double down”—doubling their bet and taking one card against the dealer’s multiple hits. They can push when the odds are in their favor. F WE PLAY
Double Down to Double Up
A straight up strategy is the way of the struggling seller. Every sales call is the same. Master sellers use basic strategy, especially the double down, to double up their sales. Underperforming sellers see themselves as servants to their customers (masters?). Master sellers give world class service, but they aren’t servants. Sellers who kill it see themselves as money-making partners and consultants to their customers (partners!). Servant-like sellers are afraid to make margin. “What if my customer (boss) finds out I made too much money on this deal?” Master sellers don’t even know what this question means, much less ask it. Master sellers know that their customers buy from them because they consistently do a great job for them, not because they are always the cheapest. Because of this mentality, the master seller knows when to double down and pushes, when the time is right, for a bit more volume and/or margin from their customers.
When & How to Double Down
When we have the best deal. When we know we have the best deal or our customers tell us we have the best deal, we ask for more volume. When we lose an order. Find out what they bought. Ask for the next two. When the customer counters on price. We should counter the price objection by asking for more volume. This is another good reason to add extra margin to our initial proposal. This way, we can accept our customer’s offer and pick up more business while we are at it. When we are on fire! In basketball, we call it a “heat
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check.” A heat check happens when you can’t miss. The player with this feeling will take a wild shot, just to see how hot they are! As salespeople, we should do the same. If we are on fire with some customers, we should push the margin and volume envelope with all customers. When the market is on fire! See “heat check” above. If the market is moving in a positive direction, we must push for more volume and margin. If not us, who? If not in a hot market, when? “I’m going to give you a shot on this one.” When a customer we have been working, who is not buying from us or not buying enough from us, comes at us with this approach, it is time to double down. One reason we are getting this call is because their main supplier can’t do what they are asking us to do. Regardless, we don’t just sell the order. Double down by asking for an ongoing commitment. “Mr. Jones, I appreciate the shot on this one and, of course, I will do it for you. My being able to do this is in a tight market is exactly why you should have me in your regular rotation of suppliers. Before we put this together, let me ask you, will you buy from me on a regular basis now?” It can seem at times that the customer is the house. That they have all the cards. Master sellers know that this is not true. We have strategies and, more importantly, mentalities that level the playing field. When the odds are in our favor, double down to double up. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
FAMILY Business By Wayne Rivers
“It took me six months to figure out why I was so happy”
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E RECENTLY INTERVIEWED a 50something second-generation family business owner from New Jersey who had helped consummate the sale of his company. He said that, post-sale, a great weight had been lifted from his shoulders. While helping run the family business for almost 30 years has been a great opportunity and experience, he was thrilled to have a new lease on life and was reflecting on his new opportunities. He commented, “It took me six months to figure out why I was so happy,” and that caught our attention. We asked what he meant, and here’s what he told us. First, running the family firm meant dealing with never ending macroeconomic issues. Sourcing inputs and regulations were neverending battles fought with companies and entities much larger, more powerful, and less flexible than the family business. He felt with respect to inputs and regulations that he was “fighting a losing battle” every day. However, he had to be optimistic for his employees who, being realistic, could see that business was soft during the recession, there were no margins, and business conditions were very tough. “But part of my job was to convince them that we were going to be fine in the future. I felt trapped and sometimes hypocritical.” Family business leaders are often very lonely; they must deal with frustrations and pressures most people never have to encounter, and they must simultaneously maintain their
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reserve and “stiff upper lips” in order to model confidence for those dependent on them. Second, there were the daily fires to put out. If the burglar alarm went off at 3:00 a.m., someone had to be there to meet the sheriff. Dealing with health insurance price increases, worker’s compensation issues, the 401/k plan, bankers and CPAs, and employee drug tests, they all “were just no fun.” Worse, these kinds of meetings and tasks took up so much time that he felt he had “no time to add value to any of the high-payoff activities on my plate.” Time management is one of the critical success factors for family business leaders. Third, family business dynamics were always very much in play. “My brothers thought it was time for our father to go, but he wasn’t ready, felt he had plenty of value left to add, and that he wasn’t given his due by my siblings. I always felt that I was trying to broker the peace between them. I was like the dampening rod in a nuclear reactor….” The ability to maintain the balance between strong willed people with differing viewpoints who happen to be bound by blood and heritage is an attribute you’ll never see featured on a resume, yet it is a vital skill for family owned business members. He continued: “Selling the business has added years to my life. I never knew how good life could be. The circle of life works in family businesses. The company is born, it grows, and it dies—or, in this particu-
June 2015
lar case, it sold. That’s the way it worked for us.” The lesson: owning and operating a family business is one of life's great challenges. The rewards come in many forms. For this family business owner, the reward was cashing out, having an opportunity to enjoy life more, and moving on to new ventures. His path may not be the same as yours—and vice versa. However, it’s important to note that, for some family businesses, selling out is precisely the right answer at the right time, and there is no dishonor in doing so. There is life beyond the family company. – Wayne Rivers is president of The Family Business Institute, Inc. (www.familybusinessinstitute.com). Building-Products.com
COOL BLENDS
Timeless Beauty BEGINS WITH THE FINISH
Evening Blue
Arctic White
Boothbay Blue
Weyerhaeuser Distribution has you covered. From coast to coast, Weyerhaeuser Distribution is YOUR SOURCE for James Hardie® siding & trim. Work with us today 888.453.8358.
© 2015 James Hardie Building Products Inc. All Rights Reserved. TM, SM, and ® denote trademarks or registered trademarks of James Hardie Technology Limited. The is a registered trademark of James Hardie Technology Limited. All other logos belong to their respective owners. AD1420 5/15
SUBTLE BLENDS
Timber Bark
Cobble Stone
Khaki Brown
Capture the essence of your home with OUR CURATED COLLECTION OF COLORS.
Color specialists at James Hardie have designed a distinctive palette of ColorPlus® Technology finishes for your home’s siding and trim. With a range of tones drawn from natural environments, these exterior finishes are not simply paint. They’re baked-on colors that are as brilliant and timeless as America’s idyllic neighborhoods.
Explore color combinations at jameshardie.com
888.453.8358
LD-CLAS OR
S
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AVAILABLE AT
IN
C E 1921
Capital Expands in Phoenix
Capital has expanded the footprint at its Phoenix, Az., distribution yard by acquiring the adjacent 14,000-sq. ft. building it has been occupying as its sales office. The building adds roughly 9,000 sq. ft. of office space and 5,000 sq. ft. of warehouse storage to its current 77,000 sq. ft. of storage space. The 18-acre Phoenix branch inventories a diverse product mix, including redwood, engineered wood products, fiber cement, cedar, white fir, spruce,
pine, Douglas fir, treated products, plywood, and composite decking and railing.
inventory and staff to Myrtletown. But, as inventory there declined, locals speculated it too would soon close.
NorCal Yard Shutting Down
Marvin Buys TruStile Doors
McKenny’s Building Center, Myrtletown, Ca., formerly known as Myrtletown Lumber, is closing after 22 years. The yard shut down for the first few days of May, then began a liquidation sale May 4. A sister store in Arcata, Ca., closed in February, transferring much of its
The Marvin Cos., Warroad, Mn., has acquired 100% ownership of TruStile Doors, Denver, Co. “TruStile is an outstanding company with a proven track record of quality and craftsmanship that aligns with our values and premier positioning in the marketplace,” said Dan Marvin, Marvin’s VP of business development. “The addition of TruStile to our family of brands will expand our product portfolio into other building products categories, and will allow us to combine our knowledge and resources to take advantage of new opportunities that will grow all of our brands.” Marvin plans to run TruStile as a separate business unit within The Marvin Cos. There will be no changes made to the way that TruStile currently services its national network of dealer partners and TruStile’s current senior management team, led by president and CEO Scott Schmid, will continue to run the company from its Denver headquarters.
DEALER Briefs Ace Hardware, Vancouver, Wa., is closing its doors after losing its lease. Store owner Bruce Ault suspects the space will be leased to a rival hardware operator. Spenard Builders Supply , Soldotna, Ak., held a grand reopening last month to show off its recent remodel, which included adding wider aisles, design and millwork centers, new flooring, lighting, and an in-store Streetscapes display home. Dixieline Lumber/Probuild is offering Skyreach L&S Extrusions Corp.’s Harmony Series
now
Perfect Patio Door at all of its Southern California home centers.
Kodiak Building Partners, Denver, Co., has agreed to purchase the operating assets of 10-unit Zarsky Lumber Co., Victoria, Tx. Habitat for Humanity opened a new ReStore discount LBM outlet at the former Withers Lumber site in Woodburn, Or. 30
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June 2015
Building-Products.com
Federal Way Yard Closing Up
New Lumber & Hardware, Federal Way, Wa., is closing this summer after 60 years. Co-owner Jim Eichholtz, 66, is retiring. His partner/ brother, Bill Eichholtz, will return to work, but is unsure in what capacity. Their father, Philip Eichholtz, who died in 2013, founded the business in 1954. A liquidation sale began April 30.
Blaze Strikes Pole Yard
McFarland Cascade suffered about $1.3 million in damages and lost up to 1,000 utility poles in an early morning fire April 30 at its pole yard in Fresno, Ca. Investigators continue searching for a cause for the blaze, which started about 3:45 a.m. and lasted the entire day due to an absence of nearby hydrants.
GAF Adding PVC Line in Utah
GAF Corp. will open a new polyvinyl chloride (PVC) manufacturing line at its commercial roofing plant in Cedar City, Ut. The line, will transform the Cedar City operation into a full-service manufacturer and supplier of PVC and thermoplastic polyolefin (TPO) single-ply membranes as well as polyisocyanurate (ISO) insulation. The company expects the line to become operational as early as mid-2016. GAF also announced its consideration for an additional plant in the eastern U.S. that will manufacture PVC, TPO and ISO.
SUPPLIER Briefs
Interfor Corp. temporarily curtailed operations at its Tacoma, Wa., sawmill May 22 due to market conditions. It also cut back hours at mills in Port Angeles, Wa.; Molalla and Gilchrist, Or.; and Adams Lake and Grand Forks, B.C. ITOCHU Corp. completed the sale of PrimeSource Building Products, Irving, Tx., to Platinum Equity. Rocky Mountain Wood Protection, Denver, Co., is now distributing Integrity Composites’ DuraLife composite decking and railing in Colorado, New Mexico, and Utah.
Taiga Building Products, Rocklin and Sanger, Ca., are now selling Hoover Treated Wood Products FRTW. Capital Lumber Co., Portland, Or., has agreed to distribute WOLF Home Products’ WOLF PVC decking and capped composite decking across central Oregon and the greater Portland area. Last year, Capital’s Tacoma, Wa., DC became WOLF’s first West Coast distributor. Capital Chino, Ca., which added LP SolidStart EWP last year, is now also stocking the LP SmartSide line, including products prefinished by Northwest Factory Finishes. Simpson Strong-Tie, Pleasanton, Ca., was named 2014 Preferred Supplier of the Year by fastener distributor co-op Evergreen Marketing Group, Farmers Branch, Tx. Idaho Western, Boise, Id., and Harrington & Co., Salt Lake City, Ut., are now distributing ClipStone mortarless stone veneer.
TAIGA AND HOOVER HAVE JOINED FORCES IN CALIFORNIA
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Building-Products.com
THINKING Ahead By Mark Brennan, Program Manager, US Lumber, & NAWLA Communications Committee Member
New ways to optimize customer relationship management
C
management (CRM) systems have become a standard for businesses, and the lumber distribution industry is no different. In short, CRM systems allow organizations to house and manage client data, such as contact information, accounts, leads, opportunities, pricing and more, in one centralized location to better understand each relationship. Sales representatives can track email correspondence, pull reports and even set up automated programming through the CRM system. The possibilities are virtually limitless. Because data is collected and stored on the cloud, version control issues and nightly system backups aren’t a problem. The question remains, however, how do CRM systems benefit the lumber industry? By the nature of CRM, this tool is primarily for the use of sales representatives, but the data housed within the platform can have a number of applications. If you think about each of your clients, from large to small, consider how easily you can pull information about their pricing trends—which products are experiencing a sales boom and which aren’t—or how quickly you can look up a service-level report. All of these options are available through a CRM system. Furthermore, the option to automate certain procedures from business intelligence software is possible, and the information periodically updates throughout the day and night. There are dozens of CRM solutions that your firm can select from to capture and access customer and prospect data and activity. The most prevalent and well known is Salesforce, which holds about 16% of global market share, according to a 2014 report from Gartner. While this tool is common in the building products industry, USTOMER RELATIONSHIP
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recent research conducted by DMSi reveals that SugarCRM, Microsoft Dynamics CRM, ACT! and Goldmine are also used by manufacturers and wholesalers of lumber and related building products. DMSi (Distribution Management Systems, Inc.) is a software company that specializes in ERP and related solutions for the building materials industry. It is currently developing a CRM system that would also integrate data between a firm’s CRM and ERP systems. While the core functionality for managing information about your contacts (including interactions, timelines and documents), tracking sales performance, and collaborating across a sales team is similar across most leading
Building-Products.com
A Special Series from North American Wholesale Lumber Association
CRM systems, features such as invoicing, email integration, and lead generation support may vary across these tools. You should consider how many employees will use the system and how, your likelihood of using the expanded capabilities of different offerings, and if customizing your solution would be of value when evaluating different CRM systems. The addition of these capabilities and customization will often add to your costs, so you should be realistic about what you will use and how you can support a more complex system at your firm.
Learn More
If you’re interested in evaluating different technology solutions or hearing how your peers are using technology to enhance their customer relationships, join me and other NAWLA members at our annual Traders Market, Nov. 4-6 in Dallas. Learn more at www.NAWLATradersMarket.com. And, for those who are already affiliated with NAWLA, I encourage you to join or start a 10 Group so that you can continue to build relationships and host conversations with peers about trends and challenges that face lumber suppliers and wholesalers. While these groups meet in-person at NAWLA events such as the Traders Market and Leadership Summit, you can reach out to another 10 Group member whenever you need his or her counsel.
At U.S. Lumber, we have invested in Salesforce, which is a feature-rich, open source platform that allows any professional individual to continually develop on the platform. We wanted a system that had the option to grow in the future versus a proprietary, more static tool. With Salesforce, our IT team has embedded a number of different features tailored to our specific sales team needs. Remember, the CRM tool is the platform that makes the information available on phones, laptops, tablets, etc., but it is up to your team to identify the needs of your sales representatives and create customized reports that make sense for you. For example, we created a dashboard with approximately 10 graphics that each quickly and concisely display different information on each client page. They show information such as which products are growing and shrinking, how many RMAs are being processed for each account, daily gross margins, trends and more.
Building-Products.com
Through these 10 pictures, sales representatives have a clear story about what’s going on with a client at that specific point in time. Sales representatives can also set specific and targeted goals based on information housed in the CRM system. If they know that a client is stocking a product, they can set a goal to get that business. Features such as these enable the sales team to create a targeted, personalized and datadriven approach for each client. It’s important to keep your users in mind when coming up with the best ways to use your CRM system. We found that some features were more applicable to our sales team than others, and to increase the tool’s rate of adoption, we focused on those features that the sales team viewed as beneficial. If you don’t have buy-in from your users on a particular offering, don’t force that interaction to happen. Instead, make those applications they do find helpful easier to use and build from there. Down the line, you may be able to revisit previously discarded features. Additionally, while adoption with your current sales team may be a challenge if you have a more experienced sales staff, adopting a CRM system and similar technologies can help you recruit and retain the next generation of sales professionals. Because they are accustomed to having immediate access to information, and are more comfortable with integrating new technologies into their work and personal lives, it is likely that they will appreciate your investment in tools that can improve their performance. Ultimately, CRM systems are what you make them, and they can provide unlimited data, management and organization for your clients. Focus on finding a tool that best suits your organization and build on it for the most personalized experience. – Mark Brennan is program manager for U.S. Lumber, Atlanta, Ga., and a member of the communications committee of the North American Wholesale Lumber Association.
About NAWLA
North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more at www.nawla.org.
June 2015
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MOVERS & Shakers David Helmers has been promoted to VP of Weyerhaeuser Distribution, Federal Way, Wa. Tim Gleason, ex-R/W Specialties, is a new marketing specialist at Capital, Denver, Co. Tammy Hopper, exProBuild, and Shari Mekelburg are new account mgrs. in Woodburn, Or. Dan Milfred has been promoted to chief financial officer of Pacific Woodtech Corp., Burlington, Wa. Scott Murray, ex-California Cascade Industries, is now technical installation mgr. for the Boral Light Building Products Division’s West region. Michael Haynes has joined PrimeSource Building Products, as territory mgr. for southern and coastal Oregon. Amy Hutton, ex-Hudson Street Design, is new to outside sales at Truitt & White Marvin Design Gallery, Berkeley, Ca., serving the Napa market. Christine Thatcher is handling the Lafayette territory. Chris Barnes, ex-River City Building Supply, is new to sales at HD Supply, Salinas, Ca.
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Patrick Schleisman, ex-Mid-Columbia Lumber, is now central planning business mgr. for Roseburg Forest Products, Roseburg, Or. Jack Walker is now sales mgr. for Cascade Windows, Phoenix, Az. Greg Templeman has been named VP at Sunroc Building Materials, Lindon, Ut. Jeff Zesiger is store mgr. of the new Orchard Supply Hardware in Hollywood (Portland), Or. Lance Taklo, ex-White Cap, is new to counter sales at Valley Supply, Woodinville, Wa. Geoff Watts has joined BMC, Seattle, Wa., as an EWP designer. Tim Elbers, ex-ISIS Wood Systems, has joined River City Software (PictureTally) as North American sales mgr. He is based in Michigan. James E. Cline, senior VP and CFO of Trex Co., Winchester, Va., will become president and CEO when Ronald W. Kaplan retires Aug. 17. Kaplan will continue as chairman. Bryan H. Fairbanks will succeed Cline as CFO, and F. Timothy Reese, senior VP-operations, will retire.
June 2015
Deborah O’Connor has joined True Value Co., Chicago, Il., as senior VP and CFO, succeeding David Shadduck, who has left the co-op after 14 years. Dan Marvin has been promoted to the VP-business development for The Marvin Cos., Warroad, Mn. Ava Harter has been named senior VP, general counsel, and secretary of Owens Corning, Toledo, Oh. Mark Skinner has joined CPG Building Products, Wilmington, Oh., as now marketing mgr.-digital for AZEK and TimberTech. Eric Thiele has been promoted to VP and business controller, global architectural coatings and protective & marine coatings for PPG Industries, Pittsburgh, Pa. Vince Morales is now VP-investor relations and treasurer, and Scott Minde, director-investor relations. Shane Short, ex-Royal Building Products, has been named general mgr.-PVC trim for Ply Gem, Cary, N.C. Thurston Unger is striking for longer lunch breaks at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Building-Products.com
SPECIAL Focus By Southern Forest Products Association
Southern pine industry equipped for rebound F
DEMAND for new housing in many markets has helped support increased production of southern pine materials.
Wholesale Industrial Lumber
REEL
LUMBER SERVICE
1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806 Fax 714-630-3190 (714) 632-1988 • (800) 675-REEL 3518 Chicago Ave., Riverside, Ca. 92507
(951) 781-0564
www.reellumber.com 38
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June 2015
OR THE FIFTH straight year, total shipments of southern pine were up in 2014, reaching 15.79 billion bd. ft. Those dark years of recession are a fading memory, and mills are equipped to once again satisfy growing demand. Granted, the lumber business remains cyclical with annual shipment volumes shifting up and down, often mirroring the health of the domestic housing market. The most recent recession is a painful memory, but was a period that taught producers some valuable lessons—increasing efficiency and targeting niche markets to better serve both existing and new customers. The inventory of new homes for sale is finally trending downward, creating demand for new housing starts in many markets. In the process, and as they have been for hundreds of years, builders and remodelers throughout the country are selecting southern pine products for its strength, treatability and beauty. Readily available in a wide range of grades and sizes, southern pine products can be used inside
A
t Reel Lumber Service, we supply domestic and foreign hardwoods. Our products and services include: • Hardwood Lumber & Pine • Hardwood Plywood & Veneers • Melamine Plywood • Hardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech) • Milling (moulding profiles, S2S, SLR1E, SLR2E, & resawn lumber) • Woodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc.) • Woodworking Supplies (deft finishes, color putty, adhesives, etc.)
O
ur products are widely used in interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of complementary products to complete virtually any woodworking or millwork project.
Building-Products.com
SFPA’S new pocket span card for treated lumber is a handy field reference for floor and deck joists.
and out. The Southern Forest Products Association (SFPA) provides dealers and distributors with the information they need to sell more lumber. SFPA’s product promotion site, SouthernPine.com, is a one-stop portal for everything pertaining to the specification and use of southern pine materials. In addition to design values, span tables and comprehensive publications, the site serves as a helpful resource for building tips and best-use practices. Pro deck builders and advanced DIYers can find everything needed to build a code-compliant deck or porch online at SouthernPineDecks.com. It includes construction guidelines, finishing and maintenance tips. SFPA’s newest pocket span card addresses treated lumber spans. The laminated card measures 3.75”x7.75” and contains three tables for treated floor and deck joists in nominal sizes ranging from 2x6 through 2x12. All span table publications and pocket span cards can be ordered from southernpine.com. Also, all individual span tables are available for download from the website.
888-807-2580 Bend, OR
www.pelicanbayfp.com DISTRIBUTION LOCATIONS Colton / Fontana / Modesto / Salinas / Stockton, CA PRODUCTS & SERVICES Framing Lumber / Pallet Stock / Industrial Lumber / Softwoods Hardwoods / Cedar / Fencing / Decking / Redwood Custom Cut Stock / Treated Lumber / Tile Battens 3-Hole & Slotted Vents / Custom Cutting / Remanufacturing Heat Treating / Fire & CCA Treating
“Focused on the future with respect for tradition”
PCBC Goes South, Goes Big
Ten thousand industry professionals are expected to descend on San Diego, Ca., this month, as PCBC returns to Southern California. Billed as the largest annual home building show in the West, the June 24-25 event will feature 100,000 sq. ft. of exhibits, over 300 exhibitors, a two-day main conference, single-day multifamily trends conference track, and the VIP Key Buyers Club, a VIP program for purchasing teams from high-volume builders. Keynoter Simon Sinek will address “Leaders Eat Last: Why Some Teams Come Together & Others Don’t,” while Shawn Achor will speak on “The Happiness Advantage: Linking Positive Brains to Performance.” Attendees looking for a space to unwind can recharge at The Yard, an area of the showfloor with a restaurant, lounge, ping pong table, seating and charging stations, social media billboards, live music, and a vintage Volkswagen Bus doubling as a photo booth. According to PCBC’s senior VP Linda Baysari, “This year we are expecting an even greater number of attendees, representing a healthy cross section of each of the key residential building disciplines across the western United States and beyond.” Building-Products.com
PST is located in Weed, CA, the historical heart of the West’s timber country, ideally situated on Interstate 5 to service all of California and the Western U.S. • NatureWood® brand ACQ treated products • Advance Guard® brand Borate treated products • TSO (Treating Service Only) available. • PST is ALSC quality assured by Timber Products Inspection Agency (TP) complying with AWPA Standards and the CheckMark Program.
Offering Brown tone stained treated Douglas Fir for all pressure treating applications
For more information, contact Shawn Nolan snolan@pstreating.com • (530) 938-4408 NatureWood preserved wood products are treated with Alkaline Copper Quaternary compounds or Copper Azole. NatureWood and Advance Guard preserved wood products are produced by independently owned and operated wood treating facilities. NatureWood® and Advance Guard® are registered trademarks of Koppers Performance Chemicals Inc. ©3/2015
June 2015
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NEW Products
Visual Tally Tracker
PictureTally is an innovative system that uses digital cameras and the latest computer vision software techniques to perform rapid, accurate end-tallies of lumber bundles. The software creates and maintains pictures of every pack that is tallied, and each board in the pack is displayed along with its dimensions. These tallies are instantly available to every member of the production team via a website-like companion program called WebTally, instantly informing sales and marketing staff as to available lumber. The pictures are invaluable, providing not only tally information, but visual details of the wood itself. PICTURETALLY.COM (603) 686-5533
Handy Toolboxes Milwaukee Tool’s new Jobsite Organizer is versatile and meticulously crafted to increase productivity. Designed with the needs of the professional tradesman in mind, the new organizer includes eight small and two large removable bins that can be mounted on common jobsite materials by utilizing the integrated screw slots.
MILWAUKEETOOL.COM (800) 729-3878
Reliable Roof Repairs
Securock brand concrete roof deck panels are a new category within USG’s high-performance roofing portfolio, and can be combined with other noncombustible materials to create a one- and two-hour firerated roof-ceiling assembly. Designed with great uplift ratings, and to carry gravity and lateral loads, the panels are mechanically fastened to cold-formed steel joists or framing members, and roof membranes or insulation attach directly over the panels, making installation fast and easy.
USG.COM
The Merchant Magazine
Royal Building Products’ latest traditional vinyl siding offering, Estate, features a woodgrain that captures the look and feel of natural wood without the added maintenance. Engineered from vinyl, Estate exceeds the industry standards for product durability and performance and features a 5/8" butt height, which offers outstanding shadow lines. Its new teardrop-lock design ensures robust on-the-wall performance and easy installation.
ROYALBUILDINGPRODUCTS.COM
(800) 950-3839
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Vinyl Siding for Curb Appeal
June 2015
Building-Products.com
Surface Grinder
The Bosch CSG15 5" surface grinder employs maximum 12.5 amp, 9300 RPM power for that extra push in concrete grading, surface preparation, concrete cleaning, and other harsh concrete applications. The tool’s constant response electronics deliver constant speed under load, overload protection, and soft-start, smooth operation. BOSCH.COM (877) 267-2499
Fade-Proof Siding
The Paladin Caselight CLK10 provides 10,000 lumens of portable light that lasts up to seven hours on battery power and sets up in less than 20 seconds. It weighs 32 lbs. with no need for a plug and is great for toughto-see jobs like working in basements and crawlspaces.
SolarDefense Reflective Technology has been developed by Mastic Home Exteriors by Ply Gem, to offer protection against fading and heat distortion for today’s boldest siding colors. The formulation of reflective polymer ingredients is molecularly bonded to a tough outer PVDF layer that significantly reduces heat absorption and improves overall color stability.
PALADINPROTECT
MASTIC.COM
Most Illuminating
(888) 394-6765
6 Handy Tools in 1
(888) 975-9436
Pneumatic Framing Nailer
The new Flip & Grip Wrench Multi-Tool by Cresent combines six tools, including a ratcheting wrench with an adjustable jaw that fits over 40 fasteners. It also holds a #2 Phillips screwdriver, 3/16" slotted screwdriver, knife with both smooth and serrated edges, combination bottle opener/can opener/wire stripper, and lanyard ring.
Paslode’s new pneumatic framing nailer allows pro remodelers to easily reach tight spaces and reduces fatigue when working in overhead areas. The nailer offers a light, maneuverable solution while delivering powerful, jam-free and reliable operation. Featuring 90-120 psi operating pressure and aggressive nose teeth for precise toe-nailing, the nailer provides high-quality results.
CRESCENTTOOL.COM
PASLODE.COM (800) 222-6990
(800) 621-8814
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Building-Products.com
Bonding Adhesive
Terra Cut stone collection by Heritage Stone (ProVia Products) offers a uniquely dramatic look for manufactured stone products. The design combines the natural characteristics of weatherworn, coarse-grained, and coral style stones, with deep shadowing and contrasting texture variations. It comes in three colors: Slate, Russet and Summit.
New HydroBond water-based PVC bonding adhesive from Mule-Hide Products delivers a high-strength, long-lasting bond, while giving contractors the convenience and time savings of a one-sided, wet lay-in application. Formulated to bond PVC membranes to a variety of porous and non-porous substrates, it can be used on clean, dry horizontal surfaces with slopes of up to 2:12, and as a contact adhesive in applications with steeper slopes or in vertical applications.
PROVIAPRODUCTS.COM
MULEHIDE.COM
Bold Stone Designs
(877) 389-0834
(800) 786-1492
Distributed by
• (541) 535-3465 • www.normandist.com Superior Service, Products & Support
P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288
Building-Products.com
June 2015
The Merchant Magazine
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Powerful Wrenches
DeWalt’s new brushless hightorque impact wrenches feature efficient, brushless motors. With the lithium ion battery pack, they deliver the power, speed, and extreme runtime required by the professional.
DEWALT.COM
Vintage Decking
AZEK Building Products’ newest decking line, the Vintage Collection, features rich, classic colors, representing a unique style within the capped PVC decking category. The collection consists of three natural shades that have a definitive look of freshly stained wood—mahogany, cypress and dark hickory.
Fill ’er Up
(800) 433-9258
A new portable gas can features patented spill-proof technology, a rotating nozzle, and a thumb-release trigger, allowing gravity to dispense fuel from the bottom of the can. The SureCan also self-ventilates and offers a durable design. Models hold 2.2 or 5.0 gallons.
SURECANUSA.COM
AZEK.COM (877) 275-2935
(801) 827-0500
Tech In Your Pocket
Bosch is expanding its laser measure line with the introduction of the GLM 30, GLM 35 and GLM 40, offering users the accuracy and affordability of the pocket-size GLM 15, but with greater functionality and range. The tools maintain simple operational features and compact design while offering users the ability to calculate area and volume in addition to length.
BOSCHTOOLS.COM (877) 267-2499
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Building-Products.com
WHAT YOU WANT. WHEN YOU NEED IT. Color-Blended Shingles
Dimension Lumber Treated Products Domestic
Timbers Green & K.D. Export
CertainTeed’s new asphalt roofing shingle, Patriot, comes in a six-color palette and combines intricate color blend drops with intermittent shadow lines. Colors are Colonial Slate, Driftwood, Weathered Wood, Shadow Black, Graystone and Prairie Wood.
CERTAINTEED.COM (800) 233-8990
Dust-Collecting Saws
The new RotoSaw+ with Dust Vault by RotoZip provides superior power, speed and performance. With its integrated Dust Vault attachment, the 6amp cutting tool eliminates up to 90% of dust and debris, answering contractors #1 complaint when tackling indoor jobs: dust.
ROTOZIP.COM (877) 768-6947
High-Powered Loaders
The IMT 28562 hydraulic loader from Iowa Mold Tooling features the highest rating in the IMT lineup, with a lift capacity of 5,700 lbs., over 62 ft. of horizontal reach, and a vertical reach exceeding 71 ft. 4”. It can lift 2,400 lbs. at its maximum horizontal reach. A 22-ft. hydraulic out-and-down stabilizer span provides high stability for handling palletized goods. IMT.COM (800) 247-5958 Building-Products.com
Manke Lumber Company is familyowned and has been serving the needs of the lumber industry since 1953. We take pride in milling and stocking quality lumber in a full range of commodity sizes and larger dimension timbers. We also answer your market needs for a wide variety of treated lumber products. Our forest products are milled from carefully harvested Northwest trees ready for distribution to you—on time and at the right price. Located in the Port of Tacoma, we have ready access to deep water shipping, rail heads or trucking terminals for longer haul loads. Manke operates its own fleet of trucks and is at your service for straight or mixed loads by truck, rail or sea. We manufacture primarily Douglas fir and western hemlock, including • 2x4 thru 2x12, Lengths 8-20’ • 3x4 thru 3x12, Lengths 8-26’ • 4x4 and wider, Lengths 8-26’ • 6x6 and wider, Lengths 8-26’ • 8x8 and wider, Lengths 8-26’ • Timber sizes up to 12x12
Manke Lumber Company Call 1-800-426-8488
1717 Marine View Dr., Tacoma, WA 98422
Phone 253- 572-6252
Fax 253-383-2489
www.mankelumber.com June 2015
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LA HARDWOODS Photos by LAHLC
LOS ANGELES Hardwood Lumberman's Club enjoyed a dinner meeting April 9 on the patio at Moreno's Mexican Restaurant, Orange, Ca. [1] Bill Fitzgerald, Dan Bohannon, Stephen Ondich. [2] Randy Lambert, John Mortati, Steve Arnold, Kevin Trussell. [3] Nathan Osborne, Mark Michie, Steve Stoufflet, Tom Escherich. [4] John Banks, Charley Fiala, Randy Wisner. [5] Dale Bohannon, Deonn Deford, Walter Ralston, Alan Arbiso, Marty Fox.
TREATERS
WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY
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909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – fwl-fwp@pacbell.net
www.fontanawholesalelumber.com
Specializing in Flatbed & Van Freight for over 10 years
4911 Warner Ave., Ste. 205, Huntington Beach, CA 92649 Phone (714) 840-5366 • Fax 714-840-1933
www.straight-line-transport.com “A Load We Transport Is a Load off Your Mind” 46
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June 2015
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NATIONAL HARDWARE SHOW Photos by The Merchant
TENS OF THOUSANDS of industry professionals lined up to visit the annual National Hardware Show last month in Las Vegas, Nv. [1] Jim Miller, Rick Pully. [2] Don Jones, Stan Fawcett. [3] Sasquatch, The Merchant Magazine’s Patrick Adams. [4] Carlos Zarate, Jeff Bloch, Cyndi Chandler. [5] Bob Tellier. [6] Michael Lueck, Don Atkins, Dan McClure. [7] Jennifer Mulder, Cheryl Glover. [8] Peter Rodaway, Ernie Couillard.
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June 2015
The Merchant Magazine
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DON GREGSON MEMORIAL GOLF Photos by The Merchant
SOUTHERN CALIFORNIA Hoo-Hoo hosted its Don Gregson Memorial Golf Tournament in San Dimas, Ca., supporting the Wounded Warrior Project. [1] Amy Nasir, Marcia Nicholson, Betsy Bendix, Tierney Tait, Kimberly Kopsho, Gense Horan. [2] Kevin Witt, Lucky Luciano. [3] Jose Covarrubias. [4] Ryan Hibler, Jeff Nace, Josh Merry. [5] John Garbo. [6] Troy Bailey, Danny Sosa, Rich Geary. [7] Paul Albrecht. [8] Rob Macias, Alan Arbiso. [9] Damien Simspon, Mike Oxhard. [10] Mitch Callaway, Vic
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Leader. [11] Bert McKee, Ed Russell, Chris Skibba, Brendan Hexberg. [12] Tyrone Smith. [13] J.D. Hutton, Sean Horan, Tobin Davisson. [14] Merritt McDole. [15] Brandon Noriega. [16] Troy Huff, Vern O’Connor, Todd Beaman. [17] Greg Stout. [18] Bob MacKay, Bryan Callaway. [19] Bill Young. [20] Richard Hassett. [21] Dave Jones, Chris Meichtry, Keith Hitchcock, Joe Morin. [22] Bill Sullivan. [23] Al Reed, Joe DeRoest. [24] Rudy Russ, Rich Little. (More photos on next 2 pages) Building-Products.com
DON GREGSON MEMORIAL GOLF
Celebrating 48 years of fine hardwood manufacture and distribution For the finest service in the industry, call on Swaner for a steady, reliable source of quality hardwood products at competitive prices.
HOO-HOO GOLF for Wounded Warriors (continued from previous page): [25] Jim Williamson, Bob Scanzoni. [26] Tom Foote, Mark Stone. [27] Mark Spitz, Tom Doidge. [28] Don Green, Mark Huff. [29] Mark Davis, Terry Lawler, Steve Lim, James Elliott. [30] Mark Jones. [31] Mike Olsen, Chris Rebolledo. [32] Joe Lozano. [33] Chris Johnson. [34] Miguel Hernandez, Scott Whitman. [35] Bryan Geer, Mark McDermott. Building-Products.com
• Hardwood Lumber / S4S • Hardwood Plywood • Custom Hardwood Moulding • Custom Hardwood Flooring
5 West Magnolia Blvd., Burbank, Ca. 91502 Fax 818-846-3662
(800) 368-1108 June 2015
The Merchant Magazine
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Photos by The Merchant
[36] Robert Assman. [37] Jerry Garvin, John Assman, Bob Munson. [38] Dave Burnach, Jason Jenkins, Chris Bell. [39] Mike Claborn. [40] Ryan Lauterborn, Larry Christensen, Dan May. [41] Jay Gregson, Guy Hargreave. [42] Brandon Carpenter, Ken Carpenter. [43] Jordan Gregson. [44] Paul Barron. (More photos on next page)
DON GREGSON MEMORIAL GOLF Photos by The Merchant
SOCAL GOLF (continued from prior pages): [45] Fernando Abundis, Jacob Nelson, Mike Nicholson, Troy Staufenbeil, Andy Crall, Timothy Miller. [46] John Allen. [47] Scott Middaugh, Craig Evans, Paul Corso,
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John Pasqualetto. [48] Andrew Manke, Matt Manke. [49] Rick Cosbey, Greg Krakar. [50] Mike Mische, Darrell Bustamante, Kenneth Hansen. [51] Gabe Lazo, Lee Souza. [52] Paul Braeger, Andrew MacKay. [53] Jesse Jackson, Craig Larson, Jack Stanfield, Oscar Marin. [54] Andrew Stevermer. [55] David Tait, Clyde Valore. [56] Fred Garcia. [57] Kevin Dodds, Peter Howe. [58] Terry Rasmussen, Michael Verderber. [59] Steve Sadler, Rob Keyes, Jeff Won. [60] Jim Gregson, Brett Gregson. [61] Craig Crafton, Bryan Schuyler, John Penland. [62] Ray Meamber, Sean O’Bannon. [63] Kevin McLernon. [64] Troy Cambell, Mark Rushlow. [65] Ric Babcock, Dave Forgerson. [66] Robyn Ueberroth. Building-Products.com
ASSOCIATION Update Western Building Material Association will conduct a blueprint reading & material take-off workshop June 17-18 at WBMA’s Kincaid Learning Center, Olympia, Wa., led by Casey Voorhees. Tom Rider, managing consultant at LBM Advisors and a licensed attorney, has joined the WBMA staff, specializing in assisting members with regulatory compliance issues and managing member services. He was national sales manager for BlueTarp Financial Services and is a past WBMA director and past president of the Young Westerners Club. West Coast Lumber & Building Material Association’s 2nd Growth summer conference will take place July 16-17 at Omni Rancho Las Palmas Resort & Spa, Rancho Mirage, C. It will kick off at Omni Rancho Las Palmas Golf Course with a golf luncheon. Paul Mellor will share “Memory Magic, Building a Better
Memory,” a keynote speech organizing your thoughts. The meeting will conclude with a powerful message by Hal Elrod author of The Miracle Morning, on taking success to the next level. Mountain States Lumber & Building Material Dealers Association is hosting Best Practices webinars on fraud prevention June 25, July 9, and July 23, led by Terri Tucker, president of E-Cubed Consulting. The association is also hosting a golf tournament July 14, to benefit the Tennyson Center for Children, at The Ranch Golf & Country Club, Westminster, Co. Association of Millwork Distributors has changed its name to World Millwork Alliance (WMA). The switch reflects the association’s broader millwork commitment to strengthen the millwork community and its expertise in servicing the millwork industry.
National Lumber & Building Material Dealers Association has opened registration for its annual ProDealer Industry Summit Oct. 28-30 at the Broadmoor Hotel, Colorado Springs, Co. The Gypsum Association elected Ryan Lucchetti, PABCO Building Products, Rancho Cordova, Ca., as its new chair of the board, succeeding Craig Robertson, National Gypsum, Charlotte, N.C. New vice chair is Peter Bauer, American Gypsum, Allen, Tx.; treasurer Charles R. Harrison, GeorgiaPacific Gypsum, Atlanta, Ga.; and secretary Stephen H. Meima. Door & Hardware Institute is hosting its executive summit June 2829 in Dallas, Tx. Association of Woodworking & Furnishings Suppliers hosts its annual woodworking fair July 22-25 at the Las Vegas Convention Center, Las Vegas, Nv., featuring technical seminars, live demonstrations, a new products showcase, and College of Woodworking Knowledge seminars.
Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available
P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 info@wetreatwood.com
Sales for Coast Wood Preserving
C&E LUMBER COMPANY 1 1/2” to 12” Diameter in Stock.
SPECIAL QUOTES
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June 2015
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IN Memoriam Carrol “Ross” Ensworth, 94, founder of RFP Lumber Co. and Ensworth Forest Products, Auburn, Ca., died April 10. During World War II, he served as an Army corporal. He formed Ensworth Wholesale Lumber, Akron, Oh., in the early 1950s, later relocating to California and launching Ensworth Forest Products in 1978. He started RFP in Auburn in 1987. It is now run his by his son, Jerry, and grandson, Matthew, in Oroville, Ca. Richard Kenneth “Rick” Mead, 60, longtime manager of ProBuild, Gig Harbor, Wa., died May 10 He began his 40-year industry career with Ernst Hardware, Tacoma, Wa., before becoming manager of Al Meier’s Building Center, Gig Harbor, in the early 1980s. He stayed on after the store became Lumbermen’s and then ProBuild. Roy A. Parsons, 84, former president and co-owner of San Luis Mill & Lumber Co., San Luis Obispo, Ca., died April 29 in Santa Margarita, Ca. After serving in the U.S. Navy, he joined the family business in 1954, leading with his brothers, Gerard and Doug, until he retired in 1987.
John Lawrence Walker, 74, retired VP of timberlands for Simpson Timber, Seattle, Wa., died March 2. He graduated from the College of Forestry at Syracuse University in 1962, while working summers as a smoke jumper in the national forests of California. He then spent a year in at the Forest Research Institute in India, performing graduate work in tropical forestry on a Fulbright Grant. He then earned a PhD in economics from the University of Washington and joined Weyerhaeuser and later Simpson Timber. Dean E. Matthews Jr., 80, president of Matthews Associates, Mercer Island, Wa., died March 2. After four years in the Air Force, he joined the American Plywood Association, Tacoma, Wa. In 1965, he went to work for Simpson Timber, Seattle, Wa. He founded his own public relations firm in 1983, specializing in LBM clients. He retired in 2012. Theodore Merle Scott, 95, a fifth generation Oregon sawmiller, died May 1 from injuries suffered in a fire. He served in the Air Force during World War II, then joined his father’s Scott Lumber Co., Culp Creek, Or.
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. Deadline: 18th of previous month. Send ad to david@building-products.com or Fax 714486-2745. Make checks payable to 526 Media Group. Questions? Call (714) 486-2735.
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Benjamin F. Baker, 94, former manager of J. Neils Lumber Co., Libby, Mt., died May 7 in Libby. He served in the U.S. Infantry and the U.S. Army Air Force during World War II. In 1951, he joined Neils Lumber, later moving to the purchasing department and becoming purchasing agent in 1972. He was head storekeeper when he retired in 1983. William Dean, 91, former editor of Random Lengths, Eugene, Or., died May 10 in Brookdale, Ca. He joined the price guide as editor in 1957, retiring in the mid-1980s.
APP Watch
John Raymond “Ray” Palumbo, 91, former co-owner of Allied
CLASSIFIED Marketplace
TAIGA BUILDING PRODUCTS, Rocklin, Ca., is looking for an outside sales representative for the South Bay Area. Knowledge of building material sales is necessary. Ideal candidate would live in the territory and work out of a home office. This is a salaried position with full benefits including Health, Dental and Vision insurance; 401/k with company match and paid vacation. Send resume to pat.zan@taigabuilding.com.
Building Materials, Sacramento, Ca., died Feb. 21. After serving in the U.S. Army during World War II, he spent 16 years at Dolan’s Building Materials, Sacramento. In 1962, he and John Lyon opened their own door shop. He retired in 1985.
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Call Heather at (949) 852-1990
June 2015
HKelly@building-products.com
App: STRONG-WALL BRACING SELECTOR Produced by: SIMPSON STRONG-TIE Price: Free Platforms: Web A new bracing selector web app provides pre-engineered Strong-Wall shearwall alternatives to code-prescribed braced wall panels, replacing an 84-page prescriptive design guide. SST Strong-Wall model numbers and foundation anchorage designs are established to meet job-specific requirements and provide the narrowest bracing solutions possible. “With a few easy steps, a designer can select a solution to meet the exact amount of bracing that is required,” says SST VP Sam Hensen. “This new tool makes it easier to specify equivalent solutions and also provides builders with all the information they need to submit to building departments for permit approvals.” The app includes a step-by-step tutorial along with a design example. – Go to www.strongtie.com/ software and click on the web tab Building-Products.com
DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Forest Products Society – June 10-12, convention, Georgia World Congress Center, Atlanta, Ga.; (855) 475-0291; www. forestprod.org. Western Wood Preservers Institute – June 14-16, summer meeting, Teton Mountain Lodge, Teton Village, Ca.; (360) 693-9958; www.wwpinstitute.org. Western States Roofing Contractors Association – June 15-17, convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com. Tacoma-Olympia Hoo-Hoo Club – June 17, general meeting with elections, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. Western Building Material Assn. – June 17-19, blueprint reading & material take-off workshop, Olympia, Wa.; (360) 943-3054; www.wbma.org. National Retail Federation – June 23-25, loss prevention conference & expo, San Diego Convention Center, San Diego, Ca.; (800) 673-4692; www.nrf.com. PCBC – June 24-25, San Diego Convention Center, San Diego, Ca.; (800) 956-7469; www.pcbc.com. Los Angeles Hardwood Lumberman’s Club – June 27, Wild Goose dinner cruise, Newport Beach, Ca.; (626) 445-8556; www.lahlc.net. Tacoma-Olympia Hoo-Hoo Club – June 27-28, building material sale, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. Door & Hardware Institute – June 28-29, executive summit, Hilton Anatole, Dallas, Tx.; (703) 766-7026; www.dhi.org.
ADVERTISERS Index Allura [www.allurausa.com] ..........................................................37 AZEK [www.azek.com].....................................................................5 B.W. Creative Railing Systems [www.bwcreativerailings.com] .11 Boise Cascade [www.bc.com].......................................................43 Boral [www.boralamerica.com].....................................................25 C&E Lumber Co [www.celumber.com].........................................51 Cal Coast Wholesale Lumber ........................................................51 FastenMaster [www.fastenmaster.com].........................................3 Fontana Wholesale Lumber [fontanawholesalelumber.com].....46 Huff Lumber Co. [www.hufflumber.net] .......................................30 Humboldt Redwood [www.getredwood.com] ..............................27 Jones Wholesale Lumber [www.joneswholesale.com] ..............41 Keller Lumber [www.kelleher.com]...............................................44 Kop-Coat [www.kop-coat.com] .....................................................31 Manke Lumber Co. [www.mankelumber.com].............................45 Norman Distribution Inc. [www.normandist.com].......................43 North American Wholesale Lumber Assn. [nawla.org]......Cover II
Western Forestry & Conservation Association – June 30-July 1, reviewing a timber appraisal seminar, Portland, Or.; (503) 2264562; www.westernforestry.org.
Pacific States Treating [www.pacificstatestreating.com]...........39
Mountain States Lumber & Building Material Dealers Assn. – July 14, golf tournament, The Ranch Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.
Pennsylvania & Indiana Lumbermens Mutual [plmilm.com]......21
Southern California Hoo-Hoo Club – July 15, speaker meeting, San Dimas Canyon Golf Course, San Dimas, Ca.; michael.nicholson1@verizon.net. Tacoma-Olympia Hoo-Hoo Club – July 15, board meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834.
Pelican Bay Forest Products [www.pelicanbayfp.com]..............39
Indiana Lumbermens Mutual Insurance [www.plmilm.com] ......21 Quattro Syngery Pacific [www.quattrotimber.com] ....................19 Reel Lumber Service [www.reellumber.com] ..............................38 Reliable Wholesale Lumber [www.rwli.com] ...............................36
West Coast Lumber & Building Material Association – July 1617, 2nd Growth summer conference, Omnni Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca; (800) 266-4344; www. lumberassociation.org.
Roseburg Forest Products [www.roseburg.com].............Cover IV
Association of Woodworking & Furnishings Suppliers – July 2225, woodworking fair, Las Vegas Convention Center, Las Vegas, Nv.; (800) 946-2937; www.awfsfair.org.
Simpson Strong-Tie [www.strongtie.com]...................................15
Humboldt Hoo-Hoo Club – Aug. 7, gold tournament, Baywood Golf & Country Club, Arcata, Ca.; (707) 601-9128.
Straight Line Transport [www.straight-line-transport.com] .......46
Los Angeles Hardwood Lumberman’s Club – Aug. 8, bbq, Yorba Linda, Ca.; (626) 445-8556; www.lahlc.net. Tacoma-Olympia Hoo-Hoo Club – Aug. 8, annual picnic, Gig Harbor, Wa.; (253) 531-1834.
Royal Pacific ...................................................................................13
Snider Industries [www.sniderindustries.com] ...........................47
Swaner Hardwood [www.swanerhardwood.com] .......................49 Swanson Group Sales Co. [www.swansongroupinc.com]...........8 Taiga Building Products[www.taigabuilding.com]......................40
Western Hardwood Association – Aug. 17-20, annual convention, World Forestry Center, Portland, Or.; (360) 835-1600; www. westernhardwood.com.
TruWood [www.truwoodsiding.com]......................................16A-B
Mountain States Lumber & Building Material Dealers Association – Aug. 20, golf tournament, site TBD; (800) 3650919; www.mslbmda.org.
Versatex [www.versatex.com].........................................................7
Ace Hardware Corp. – Aug. 20-22, fall market, Chicago, Il.; (630) 990-7662; www.acehardware.com. Black Bart Hoo-Hoo Club – Aug. 21, clay shoot & BBQ, Black Point Sports Club, Petaluma, Ca.; www.blackbarthoohoo181.org. Building-Products.com
Universal Forest Products [www.ufpedge.com]..........................33
Walk Green [www.walkgreenproducts.com]................................42 Western Woods [www.westernwoodsinc.com] ..................Cover I Weyerhaeuser [www.weyerhaeuser.com]..............................28, 29 June 2015
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FLASHBack 70 Years Ago This Month One of the joys of being a publication so deeply imbedded in an industry like ours is the amount of historical value it holds. In a thriving industry with a positive forecast, one can’t help but look back and reflect on the triumphs and trials that led us to where we are today. The Merchant played an extremely important role 70 years ago as an educational tool, a community resource supporting the industry and its people. This month, we’re going back 70 years. • A resource during a crucial time not just industry-wide but nationwide, The Merchant had a unique feature that updated the industry on loved ones in the war. • Lieutenant Kenneth O’Neill, son of W.H. O’Neill, O’Neill Lumber Co., San Francisco, Ca., was liberated from a German prison camp June 1, two and a half years after first running the business with his father. • The first of four diesel ships for the coastwise lumber trade in the postwar period was launched at Portland, Or., early in May when the 4000-ton motor ship, Oregon Fir, slid down the ways of the Albina Engine & Machine Works shipyard to get into postwar ship construction. • Merchant publisher Jack Dionne shared some
70 YEARS AGO: Lumber companies aided the war effort in various ways, such as by supplying component parts for tanks.
of his favorite stories of the industry to Los Angeles Hoo Hoo members at their annual meeting. There, Lt. Wm. D. Bowden, U.S. Navy, gave an interesting talk on “Getting Men and Equipment Ashore under Fire.” • A container of Puget Sound water was flown east for the christening ceremonies of United Air Lines’ first direct westbound flight from Boston and Hartford to Seattle and Pacific Northwest Points. The canteen, made from a segment of glued-laminated Douglas fir arch of Washington’s timber crop was given to the flight stewardess by W. B. Greeley, secre-
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tary-manager of the West Coast Lumbermen’s Association. Wood plus glues provided uses undreamed of by lumbermen before the war. • The launching of Water Buffalo, the 10,000th Amphibious Tank, was celebrated with a coastto-coast broadcast, in which stage, screen and radio stars shared the spotlight with Navy dignitaries, business leaders, and G.I. Joes. The Water Buffalo tanks were built by Food Machinery Corp., which had plants at Riverside and San Jose, Ca., and Lakeland, Fl. Los Angeles-based H.W Koll Mill & Lumber Co. supplied component parts for the tanks.
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