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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

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Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes, David Cutler Managing Editor David Koenig • david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn, Claudia St. John Contributors Jerry Blais, Henry German, Erin Graham, Carl Lamb, Jason Metnick, Marc Saracco, Aaron Sims, Richard Wallace Director of Sales Chuck Casey • chuck@building-products.com

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CONTENTS June 2017

Volume 96 n Number 6

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Special Report

Features

Departments

10 FEATURE STORY

12 INDUSTRY TRENDS

8 ACROSS THE BOARD 24 OLSEN ON SALES 26 THE REVENUE GROWTH HABIT 30 TRANSFORMING TEAMS 40 MOVERS & SHAKERS 42 NEW PRODUCTS 51 ASSOCIATION UPDATE 52 TALK BACK 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 52 ADVERTISERS INDEX 53 DATE BOOK 54 FLASHBACK

IT’S A BUILDING SUPPLY TALE OF BIBLICAL PROPORTIONS, AS

MODERN MATERIALS BRING

ROOFING DISTRIBUTORS RISE UP

14 INDUSTRY TRENDS

WHAT’S HOT IN EXTERIOR FACADES

NOAH’S ARK BACK TO LIFE

16 PRODUCT SPOTLIGHT

UP CLOSE WITH STEEL SIDING

18 MARGIN BUILDERS GET SFI CERTIFIED

20 MANAGEMENT TIPS

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CREATE A GOOD PARTNER STRATEGY

THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

ROOFING, SIDING & TRIM • GET SFI CERTIFIED • RIDING THE WAVE OF CONSOLIDATION

Now the beauty of a home lasts as long as the love for it.

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22 COMPETITIVE INTELLIGENCE

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NORTHWEST DEALER TRADES UP

28 NAWLA: THINKING AHEAD

RIDING INDUSTRY CONSOLIDATION

38 MARGIN BUILDERS

STAGING A CLINIC FOR DIYERS

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ACROSS the Board By Patrick Adams

Time to do it all E

TUESDAY and Thursday, I try to make time to take my 6-year old daughter to school in the morning. It gives us some father-daughter time and I get to see everything that is happening in her current world of Kindergarten. The other morning, she reminded me of a conversation we had about “what do want to be when you grow up?” As we drove along, she asked from the back seat, “Daddy, why didn’t you become a police officer? You said it’s the only thing you ever wanted to be.” I’ve made it a point to never talk down to her, so I answered her directly. I told her that although that’s what I wanted to be, I also wanted a great family life and marriage and was afraid that being a police officer would make that too difficult. There was a long silence from the back seat, so I figured that we were moving on to the next big subject in her list of life’s unanswered questions. Then she dropped the bomb on me. “Daddy, I’ve been thinking about that a long time and I’m worried.” “About what?” I asked. “I’m worried because you never got to do what you really wanted to do and I want to be a teacher when I grow up. And an Olympic swimmer. And an artist. And a police officer. And do what you do. And a farmer. And other things, and I’m worried that I won’t have time to do it all,” she answered. Honestly, the thought of my 6-year old daughter worrying about whether she’ll have enough time to “do it all” was a pretty tough. Quickly, I raced through my inventory of thoughts about what the perfect parent response was. I thought about how even in my own life I can relate! It occurred to me in these panicked seconds of thought that when we dream of being “something,” what we’re really envisioning is what will make us happy. And in happiness, it is doing something that we find reflects our core values in life. The real answer to the question “what do you want to be when you grow up?” is “happy,” isn’t it? I thought about all of my past positions and the things that made me most happy, and the things that drove me away from those companies or industries. I thought about what brought me to this business and this great industry, and what has made me truly happy every day since. I VERY

thought about that part of me that always did want to be in law enforcement and what was behind that. Sometimes, I found myself so busy “looking” that I did not see what was right in front of me. Other times, I thought it would be something I would really love doing, but felt empty inside. It all came back to living our values and when we do, somehow we have time to happily do it all! A calm came over me as I looked at her in the rear view mirror. I pulled over and looked at her puzzled face wondering why we were stopping before we got to school. Then I answered her: “Throughout your life, you’ll encounter many different people, places, things and jobs and all of them will influence you. Sometimes you’ll be happy and other times, you’ll wish for something different. But the one thing that will never change are the values that are inside of you. Those are what you should focus on and live by. You’ll have plenty of time to do whatever you want to do, but you’ll always be who you are.” From experience, I told her that while I thought I wanted to be a police officer, what I really wanted was to serve and protect. I’ve found a way to do that with my family, my employees, and with this industry, and even though I thought it had to be in law enforcement, this fulfills my values in the same way. She thought about my answer for a few seconds and with a smile simply answered, “Okay, Daddy. Do you have time to pick me up from school today and we can get ice cream?” Absolutely… we can make time to do it all! “It takes a long time to become young.” ~ Pablo Picasso

Patrick S. Adams Publisher/President padams@building-products.com

The Merchant Magazine

June 2017

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FEATURE Story By Stephanie Ornelas

Modern materials bring Noah’s Ark back to life T

HE BOOK OF Genesis describes the great flood as one that would ultimately put an end to a world of violence and sin. So when Noah was instructed to build an ark for refuge from the flood, it clearly had to be one that would withstand the toughest of weather conditions. “Make yourself an ark of wood and make rooms in it. Cover the ark inside and outside with pitch. The ark is to be 300 cubits long, 50 cubits wide, and 30 cubits high. Make a roof for it, leaving below the roof an opening one cubit high all around.” So when companies like Disdero Lumber and Colorado Timberframe heard that a lifesize replica of Noah’s Ark was going to be built in Williamstown, Ky., they knew the project needed their materials. This would be the largest freestanding timber-frame structure in the world. Known as The Ark Encounter and open to the public for viewing, the project is full-size and built according

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to the dimensions given in the Bible. Opened in July of 2016, it has exhibits housed inside its hull and stands 15 feet above the ground, spanning 510 feet long, 85 feet wide, and 52 feet high. Held up by concrete buried 30 feet deep, the timber weighs a massive 4.2 million pounds. The ark presented a big challenge for Colorado Timberframe’s small team of 45 people. President Keenan Tompkins explained how his crews worked around the clock in Lafayette, Co., while lead installer Jason Schimpf oversaw the installation in Kentucky. Employees worked all day, six days a week for 11 months straight, cutting wood and sending 180 semi-trucks filled with timber components to Williamstown. Understandably, the ark and its 1.2 million bd. ft. of square timber required a lot of trees. According to Tompkins, the team used a lot of responsibly harvested Douglas fir from Washington, Utah and Canada.

June 2017

Large logs hold up parts of the boat, the largest being nearly 5 feet in diameter. Tompkins explained that to meet the specification they found standingdead Engelmann spruce trees in a Utah forest that were 200 years old. The shiplap on the outside of the ark and the massive columns inside came from separate types of wood. Since the builders wanted to be environmentally friendly, they used Accoya, a softwood that was thermally modified with an acetic anhydride to make it weather and pest resistant. The ark includes massive vertical columns, or “lodge poles,” from a Forest Service-managed forest in Utah where dead trees, before they begin to rot, are harvested and repurposed. While Noah was instructed to use pitch for the ark, this project was not meant to float so designers left it out. “We do, however, have a giant pitch pot that you can see as you prepare to enter the ark. Located right off the queue line ramp, you can catch a Building-Products.com

glimpse of the giant pot and accessories Noah might have needed to coat the ark in pitch,” a representative for the exhibit explained. “Put a door in the side of the ark and make lower, middle and upper decks,” Genesis goes on to read. The Ark Encounter includes three decks that feature “world-class exhibits specially designed to answer questions about the biblical account of Noah’s Ark,” the website reads. When Disdero Lumber, Clackamas, Or., heard about the project being launched, it wanted to provide materials for the interior of the ark. “It was something we wanted to be a part of, and it’s great exposure for the forest products industry,” said Disdero’s Gunnar Brinck. Its 5x6 white fir LockDeck was used for the floors and ceilings, 2x6 white fir T&G decking for the roof, and 1x8 white fir paneling for the interior wall paneling. The structurally engineered product consists of two to five kiln-dried lumber laminations bonded together with an exterior waterproof adhesive to form glue-laminated decking. Perfect for a project like this, it is commonly used in heavy timber construction as well as wood frame and hybrid systems. When God told Noah to come out of the ark after 40 days of flooding, as we all know, it had endured the storm. Although the Bible isn’t specific about the exact materials Noah used, we can

WEATHERED WOOD was used for most every component, including below decks. Building-Products.com

MASSIVE vertical columns—or lodge poles—were displayed on the inside and made from standing dead Englemann spruce trees from a forest in Utah.

get a pretty good idea of what may have helped the giant ark stay afloat. And while the biblical story itself serves a bigger purpose than highlighting its building materials, the lifesize replica brings to light the importance of using the right kind of components for projects meant to sustain conditions that are out of our control, even a project as massive as Noah’s Ark.

The Ark Encounter Williamstown, Ky.

Summer Hours: Mon.-Sat.: 9 a.m. - 9 p.m. Sun.: Noon - 7 p.m. www.arkencounter.com

1.2 MILLION bd. ft. of square timber required a lot of trees. According to Colorado Timberframe president Keenan Tompkins, the team used Douglas fir from Washington, Utah and Canada. June 2017

The Merchant Magazine

INDUSTRY Trends By The Freedonia Group

Prospects rising for roofing distributors A

CCORDING TO A new study by the Freedonia Group, U.S. roofing distribution sales growth will be driven by the roofing industry’s increasing reliance on small- and mediumsized contractors to perform roof installation and repair jobs. These contractors nearly always purchase roofing from distributors because of their ability to supply contractors with the desired amount of roofing while offering such high-value services as jobsite and rooftop delivery, technical assistance, and drone-based cost-estimation programs. Distributors accounted for the large majority of U.S. roofing sales in 2016 and will further boost their presence in the market going forward. Distributors—especially large-sized firms that sell roofing as their primary product line—will see sales gains as manufacturers increasingly concentrate on the production of roofing. Roofing distributors will use their large size to purchase roofing in bulk quantities and re-sell it to contractors at favorable price points. Furthermore, distributors can use their network of warehouses and logistical knowledge to rapidly adjust to changing market conditions, such as quickly supplying contractors in storm-ravaged areas with materials for reroofing projects. Roofing distribution sales to the residential market are anticipated to see strong growth through 2021. In the new housing market, rapid gains in housing starts will fuel advances. Home builders will increasingly subcontract out all facets of roof installa-

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tion jobs to local contractors, including the purchase of the roofing. The much larger residential reroofing segment will also see sales gains. Rising property values and homeowner interest in improving the curb appeal of their residences will lead to an increase in home improvement projects like roof replacement. Contractors performing more installation jobs will in turn order more roofing from distributors, spurring sales gains. In 2016, the four leading U.S. roofing distributors—mega-chains ABC Supply, Beacon Roofing Supply,

Allied Building Products, and SRS Distribution—together accounted for nearly three-fourths of total domestic roofing sales. Going forward, these companies will command an even larger share of the roofing distribution market. These leading distributors will post sales gains because of their broad purchasing power, which allows them to buy roofing at favorable pricing and pass savings on to customers. Furthermore, leading distributors will continue to purchase competitors, adding sales locations and expanding into new local and regional markets.

LARGER CHAIN distributors are poised to take a bigger share of the growing roofing supply market. (Photos courtesy RIS Roofing Supply)

June 2017

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INDUSTRY Trends By Aaron Sims, Boral

What’s hot in

exterior facades F

OR THE PAST few years, curb appeal has been on the lips of many designers, not to mention every building publication and TV show, and for good reason. Dealer customers, both building pros and homeowners alike, are realizing the power of a well-appointed exterior to add value to the home while making it one occupants are proud to return to. From thoughtful lighting to a high-end entry to authentic cladding—here are six exterior trends that are top of mind with homeowners:

Color Diversity Neutral colors still dominate, but builders and buyers are looking to diversify those tones away from just creams and beiges. As such, we’re seeing more grays and blues, but still in muted, warm versions. Expect to see darker grays popping up more just as we’ve seen on the home’s interior. In some markets, such as the Pacific Northwest, full façades can go dark, while others are featuring it as an accent. Stone looks allow buyers to achieve the trend without the full commitment.

into the same structure to give it a more appealing aesthetic and help differentiate streetscapes. This trend can be seen in the growing maximization of accent areas, such as integrating board-and-batten into a gable detail. If your customers are taking advantage of this trend, be sure they understand the materials they’re mixing, because some absorb moisture and most expand and contract at different rates. This is one reason we designed Boral TruExterior. It absorbs virtually no moisture and can be installed in contact with the ground and other materials.

Craving Character Popular styles vary from region to region, but homeowners across the country are seeking materials that provide an authentic look. Craftsman styles continue to be in demand, but often with a modern twist, such as selecting a bevel design instead of the traditional clapboard. Similarly, some pros are creating a modern look with classic profiles, such as using the tight joints of shiplap to achieve a contemporary appearance.

Contrasting Color

All the Trimmings

Bolder choices also are popping up as accents in an effort to achieve more contrast. The trend is revealing itself in trim as browns and greens—and sometimes even darker colors—to frame neutral siding. Not a fan of dark? A bright white trim provides a visual pop for cream-toned façades.

In creating curb appeal, builders are dressing up façades with more trim, including window headers, window and door surrounds, and tapered columns. However, they’re restricting that decoration to the visible areas of the house, leaving hidden side and rear façades plain to save money.

Multiple Textures

Low Maintenance

The days of single-surface facades, whether brick, vinyl or otherwise, are fading. Builders are integrating stone, brick and different types of siding all

It’s common among consumers, for both empty-nesters and millennials, to desire varying textures and unique architectural elements without so

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June 2017

CONTRASTING colors and low-maintenance materials deliver curb appeal without going overboard. (Photo by Boral TruExterior)

much commitment to maintenance. Materials like capped composite decking combine authentic aesthetics with the expectation of high performance. Along those same lines, homeowners are willing to spend a bit more to get products that will last longer and stand up to the elements. – Aaron Sims is product manager for Boral Light Building Products. Reach him via www.boralamerica.com. Building-Products.com

PRODUCT Spotlight By Jerry Blais, Ply Gem

Siding with steel F

mean everything. As a building product distributor, forming solid relationships with customers from the start is key to building your bottom line across the entire value chain. As you are often the first point of contact for a professional remodeler or homebuilder, the industry values your guidance on the latest product innovations and market needs to help homeowners make the best decisions for their “great first impressions” from the curb. Steel siding—a less common, but up-and-coming cladding option—is one of the hottest growing materials to help you build your business. In fact, siding sales overall are poised for increased demand, with The Freedonia Group citing that sales of the entire cladding category are expected to increase 7.7% annually through the next four years, making the U.S. siding market worth an estimated $4.7 billion by 2021. This opens up a world of opportunity for dealers and distributors. When it comes to larger ticket items like siding, builders and remodelers need to instill confidence with the homeowner that the product will not only enhance curb appeal, but will also provide a solid, long-term investment. We have found that from millennials to baby boomers, IRST IMPRESSIONS

STEEL SIDING is a fast growing material designed to give the home a refined, sophisticated design. (Photo by Ply Gem)

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June 2017

homeowners are seeking personalized yet low maintenance designs. Steel siding addresses this demand. Made from galvanized steel and designed to stand up to hail, wind and snow, today’s steel siding has come a long way in the past few years. The yield and tensile strength are significantly improved over that of traditional aluminum. The process of galvanization means a layer of protective zinc is added to the surface to prevent rust and corrosion. It’s used for a variety of products and uses, such as beams, piping, automobiles, aircrafts, ocean liners, and military ships, and for good reason. If it stands up to the harshest of salt water, you can have the confidence that it’ll work for home exteriors. For environmentally-conscious builders and contractors, steel siding also offers a leg up—it’s 100% recyclable and made from up to 50% recycled materials. While many may envision steel siding as strictly flat and modern, high-performance products have a linear emboss woodgrain pattern with detailed texture that looks like real wood, without the maintenance. Modified color-retention coatings are also warrantied to last for decades, even on dark colors. “The texture of the siding gives the home a refined, sophisticated design,” said Ben Ernst, a homeowner who recently re-sided his exterior with Ply Gem Steel Siding. “It looks better than any other siding product I could have chosen—and I never need to paint it.” When choosing steel siding, look for manufacturers that offer accelerated delivery programs with lead times counted in days instead of weeks. The short lead time is ideal for distributors and contractors looking for cost-effective transport and storage strategies, as well as the ability to complete jobs more quickly. Also look for long-standing warranties against hail, chalking and fading to give your customers peace of mind. As the siding industry continues to grow—and as steel siding emerges in the marketplace—take some time to learn the benefits and consider adding to your business’s portfolio. With a plethora of choices on the market, it’s important to work with manufacturer partners for the latest insight into what’s on the horizon with building products. And in the coming years, expect to see more customers turn to durable, low maintenance siding in bold colors. – Jerry Blais is senior vice president of sales and marketing for the siding group of Ply Gem. For more information, visit www.plygem.com. Building-Products.com

MARGIN Builders By Jason Metnick, SFI

The perks of SFI certification C

the world are increasingly asking for environmentally responsible options when they make buying decisions. When it comes to wood, paper and packaging products, people want assurances that the forest they come from is managed responsibly. The Sustainable Forestry Initiative (SFI) is a sustainability organization that stands for the future of forests. SFI delivers the supply chain assurance that today’s market leaders in the lumber and building materials industry are looking for. SFI’s Chain-of-Custody Standard and SFI labels are a reliable way for businesses to assure customers that they are making a good environmental choice. Wood that is certified to the SFI Forest Management Standard offers a proof point that the forest has been managed according to ONSUMERS AROUND

multiple environmental, social and economic values— today and into the future. SFI’s Chain-of-Custody Standard is an accounting system that tracks forest fiber content through production and manufacturing to the end product.

Consumers Value Certification Studies have shown that consumers appreciate the value that SFI and other forest certification programs offer in helping them identify wood products from legal, responsible sources. In a 2014 study for the Programme for the Endorsement of Forest Certification, by the European research firm GfK, almost 70% of 1,000 U.S. consumers said they would prefer companies that source wood-based products responsibly to use a forest certification label to inform consumers.

VOLUNTEERS on a Clemson University Habitat for Humanity project worked with donated wood certified to SFI.

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June 2017

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SFI is an independent, non-profit organization dedicated to promoting forest sustainability and supporting the links between sustainable forests and communities through grant programs, carefully targeted research, direct leadership of critical initiatives, and partnerships that effectively contribute to multiple conservation objectives. Forests certified to the SFI Forest Management Standard cover more than 280 million acres. SFI program participants are responsible for more than one quarter of the world’s certified forest area.

Chain-of-Custody label. If an organization wishes to use the SFI chain of custody label or make a chain of custody claim on 100% of an organization’s product, the content must be at least 70% composed of certified forest content or recycled material. Under the volume credit method, an organization can only make claims or use the SFI label on the amount of certified input (i.e., the certified forest content or recycled content) in a specific product. This means that if the input of certified content is 30%, the organization can only make claims or

use the SFI label on 30% of the output. This is consistent with all global chain-of-custody standards. SFI standards are reviewed and updated every five years to keep up with a changing marketplace and evolving environmental science. It makes good business sense to put your company in the same league with market leaders when it comes to sustainability and brand integrity. – Jason Metnick is SFI’s senior vice president of customer affairs. Learn more by visiting sfiprogram.org/sfi-standard or calling (202) 596-3450.

From Green Consumers to Green Buildings The fact that the SFI Program can deliver a steady supply of fiber from well-managed forests is helping open new markets in the green building sector. Demand for these products is steadily increasing. Since 2006, more and more tall wood buildings, seven stories and taller, have been built around the world. Many of these mass-timber buildings are also designed to qualify as certified green buildings through programs like Leadership in Energy and Environmental Design (LEED) and Green Globes. Wood products sold as certified to the SFI Chain-of-Custody Standard are eligible for LEED credits through the LEED Alternative Compliance Path or credits through the Green Globes Rating System.

Earning SFI Certification Any company that processes or trades forest products certified to SFI, including manufacturers of forest products, can seek SFI chain-of-custody certification. They must have processes such as inventory control, employee training, reporting and invoicing so they can track raw materials from certified forests, certified sourcing and, when it applies, recycled content, through production and manufacturing to the end product. Companies can use chain-of-custody certification to track and communicate forest fiber content using one of three optional approaches for chain of custody: physical separation, average percentage and the volume credit method. To be certified, companies must pass an independent third-party audit to prove they meet the SFI 20152019 Chain-of-Custody Standard. The average percentage method allows manufacturers to label 100% of their product with the SFI Certified Building-Products.com

June 2017

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MANAGEMENT Tips By Carl Lamb, Snavely Forest Products, and Henry German, DMSi

Take a look at yourself If you want good customers, create a “good partner” strategy Good Vendors vs. Good Partners

with attracting the “right” customers. Usually this means offering all kinds of discounts to their most profitable accounts. But trying to win high-value customers by lowering prices is a losing game. Not only do you sacrifice profitability, you’re building conditional, shallow relationships. They’ll leave as soon as a competitor underbids you. If you want to build long-term loyalty with high-value customers, you need to stop thinking like a vendor and start acting like a partner. “Be a partner” is more than a feelgood cliché. It’s a competitive strategy EOPLE ARE OBSESSED

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June

that emphasizes value rather than price. It’s a more sustainable approach because it doesn’t turn every deal into a race to the bottom. And unlike price discounts, value is something your competitors can’t replicate quickly or easily. Most businesses use “be a good partner” as a motto and not a strategy. But talking points and motivational posters won’t change behavior or results. By spending a little time with your customers and your business data, you can develop an organized “good partner strategy” complete with concrete action steps and measurable outcomes.

The real difference between a vendor and a partner comes down to objectives. Good vendors care about customer satisfaction. Good partners care about customer success. That may sound like motivational fluff, but it has a profound difference on strategy. For instance, let’s say your millwork customers are facing cut-throat competition on custom jobs. They need to complete orders faster or they’ll risk losing business. A good vendor would help by prioritizing ontime deliveries. A good partner would look for ways to speed up order-fulfillment, such as offering next-day shipping. This isn’t just about “going the extra mile.” There are hundreds of ways businesses go above and beyond for their best customers. But a friendly sales staff and special pricing won’t help your millwork customers finish custom jobs any faster. Next-day shipping will.

Building a “Good Partner” Strategy Listen to Your Customers This is not a one-size-fits-all process. Your customers’ priorities are unique to their market, competition, and business goals. The more you know about what they value, the more you can align your business with theirs. You need to find out two things: what your customers value most and their opinion of your performance in these areas. Collect this information

through one-on-one conversations, group lunches, mass surveys, or a combination. (Make sure to prioritize feedback from your target audience. Trying to build loyalty with opportunistic customers is a losing game.) You should have some way of quantifying the responses, such as multiple choice surveys or rating systems, but personal feedback may give context to the numbers. Pick the Right KPIs Once you identify which value is most important to your customers, you need metrics that quantify how well you’re delivering that value. These will form your scorecard. The variations are endless, but here are some suggestions • Product Quality: rate of returns, product waste, percentage of dead inventory • Service Quality: support tickets per cycle, average length of service phone calls, human errors • Dependability/Follow-Through: backorders per cycle, rate of on-time deliveries, inventory record accuracy (IRA) Whatever metrics you choose, make sure they relate directly to your customers’ goals. Remember, this strategy is about their success, not your bottom line.

Remember Your Suppliers When you can help your suppliers be successful, they’ll want to return the favor. Develop a “good partner” scorecard around your vendor relationships. Ask your most important suppliers about their priorities, and look for ways to support them. (For instance, if your vendors are trying to improve productivity, you could help them by placing orders online rather than calling them in.) If you can become a better customer, your vendors will be more likely to give you special treatment when you need it. Turn the Scorecard into Strategy When you’ve picked your metrics, run a few reports and establish a baseline. Determine where you have opportunities to improve and start coming up action steps to boost your performance. Consider a range of options, from the ambitious to the obvious. You could speed up the picking process by implementing cycle counts in your inventory system or simply moving the ticket printer to a more central location. In addition to improving your current processes, brainstorm new ways to deliver the value your customers want. For instance, say your customers really care about staying

on schedule. On-time deliveries are obviously critical, but if you implement software that allows them to track shipments or get updates about deliveries, they will likely appreciate the extra visibility and assurance that everything is on time. If your current infrastructure can’t support big changes, you may need to make some capital investments. (For instance, you may need to purchase new equipment to make next-day shipping possible.) You (or others in your company) may be reluctant to invest in this project. After all, if customers are currently satisfied, a big capital expense may seem unnecessary. This is where you need to go back to the idea of price vs. value. Competing on value makes you very “sticky” with your customers. If you excel at answering their most important needs, they’ll be less interested in shopping around for other suppliers. When done correctly, you’ll create a significant barrier to competitors trying to break into your market. Purchasing new equipment may hurt short-term profitability, but nurturing customer loyalty will generate value for years.

Planning for the Future As you work towards becoming a better partner, continue to survey your customers to make sure your efforts are on track. You may work hard to reduce backorders, only to discover customers don’t notice the difference. If a particular strategy isn’t resonating, consider changing or refining your metrics. The scorecard is a helpful tool, not your ultimate objective. Your goal isn’t to get an “A.” It’s to deliver the value your customers want in a way nobody else can. If you’re looking for a project that delivers an immediate, measurable impact on your bottom line, then a partnership strategy is not the plan for you. Profitability is not a strategy. It is the result of a value-based strategy. Long term, you will gain more of your customers’ business by listening to what is important to them. You don’t have to be perfect to be a good partner. You just need to excel at the things your customers care about. Using surveys to build a scorecard and create long-term strategies may require some short-term investment, but if done correctly it will pay dividends for years to come. – Carl Lamb is VP and general manager for Snavely Forest Products, Pittsburgh, Pa., a national wholesaler of lumber and building products. Henry German is market teams manager for Omaha, Ne.-based DMSi, which provides business management software to the LBM industry. For tips on building an accurate customer survey, go to dmsi.com/BeAGoodPartner.

C&E LUMBER COMPANY 1 1/2” to 12” Diameter in Stock.

SPECIAL QUOTES

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COMPETITIVE Intelligence By Carla Waldemar

Trading up S

O, A GUY WALKS into a lumberyard… The boss hands him the key and says, “You do it.” That’s the short version of how at—gasp!—25, Kelly Fox got a major boost up the ladder at Dunn Lumber in Seattle. “It was a family business, an amazing company,” he recalls with fervor the yard where he remained for 12 satisfying years. Then, once again, opportunity bounced out of the blue. He was recruited by an outfit called Lumber Traders Inc., with two locations in Port Angeles, Wa. They were looking for a CEO. Oh-kay… “I said, ‘Sure. I’m open to the possibility,’” recounts the (still very) young fella. “I lived two hours west and loved the location. I have two young daughters, and we’re an outdoors family. The Olympic National Park would be right out our back door.” But, deeper than the call of the wild was the call to stretch. “I welcomed the opportunity to grow.”

Here’s what he got himself into. Lumber Traders acts as the umbrella for two outposts, five miles apart: 111-yearold Angeles Millwork & Lumber Co. and Hartnagel Building Supply, launched in 1960—together, helmed by an owner who had decided to retire and pass the torch. Which he did, in 2004, to his astonished crew as the outfit’s new employee-owners, with shares to be apportioned based on percent of payroll, and to be led by an internal CEO. Who, sort of, led them astray. Says Kelly, “Things were not on a solid footing. So, three years later, they removed him.” And hired you-know-who. Who arrived trembling in his boots. “The place was employee-owned by a staff of 52, so my biggest fear was, 52 bosses.” The two stores occupy two distinct niches in the building market: “Angeles specializes in lumber packages and bending rebar, from small to big: #3 to #8, for foundations

PACIFIC NORTHWEST lumberman Kelly Fox was recruited from a large regional chain to turn things around at two-unit Lumber Traders, Inc.

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and framing: the only one in the area doing this. Hartnagel carries rooftop products and operates boom trucks.” Together they capture the whole enchilada, “from rebar to ridge cap.” But they were operating in the past. The reigning MO was “the way we’ve always done it.” So, topping Kelly’s to-do list was: change the culture. “We needed fresh thinking, to become more aggressive. There were a lot of silos,” he recounts, such as contractor sales vs. retail sales, windows vs. doors vs. decks, “so we needed to change that focus.” He introduced a new mantra: We all serve all our customers, all day long. Nothing to hide behind. “We remodeled the first store, removing the contractor sales desk, which at first the pros objected to—‘We need our privacy.’ But 95% of business is really on the front line, anyway. They also wanted to retain their special rela-

UNICORN UNIFORMS: Kelly Fox’s daughters showed up in costume to help put away paint chips.

tionships with their particular salesperson, as in, ‘I’ve always worked with Lonnie.’ Fine,” Kelly agreed. “But when Lonnie’s busy, now you don’t have to wait for him.’ Everybody does everything! The old contractors’ sales spot became our window & door showroom. We put work stations in locations where they were needed, to make a better use of space. “When I got there, windows, doors, trim, etc., all had different software. Now, there’s one solution for the whole company. I brought in technology, gave them the tools, and said, ‘Go after it!’” Sure, there was some resistance. But most employees were all for the opportunity, especially after charting increased profits, which translated directly to their pocketbooks. Now, Kelly is primed to begin the makeover of the second store. Any lessons learned from Round One? “No,” he laughs. “Just do it!” Then the two operations will become even more seamless. Kelly has already trained his crew that when a customer comes in wanting plans for millwork or rebar, “we notify our roofing store and get a quote for the customer before he even asks for one.” Building-Products.com

That’s just part of what the boss calls “high-touch” service. Another example: “Ken, our operations manager, gets them their millwork orders within three hours (superhuman!). And that’s with 100 deliveries a week.” Pros are also quick to appreciate the new look of the rental department, covering “anything small enough to fit in a pick-up. When I came here, the rental department was in bad shape. There was a guy who could fix anything, cobble it back together”—and it looked like it, too. “So we invested $60,000 in new tools. And these days, after 50 rentals, we retire an item and buy new. Now, everything’s all clean and tidy—and guaranteed to work!” Important, because Kelly reports “a lot of new construction going on” in town after the lifting of the downturn. Yes, the recession hit hard here: “Absolutely! And natural resources and environmental legislation made it tough. We were one of the hardest-hit counties in Washington, with high unemployment.” (While at Dunn during the worst years of 2005-2006, Kelly learned from those folks to survive by watching the little things: cash flow, inventory level, and such.) “These are resilient people, here in Port Angeles, and it’s the people who pulled us out of the depths, willing the town to grow.” Which it is. New-home construction is taking off, and Lumber Traders gets a nice share of the high-end customhome business, just the way Kelly likes it. “Tract builders come to us, too, but we politely say no—no need to flight in the weeds for those margins.” Sure, there’s competition, including a Home Depot down the road. “But people like us for that high-touch service. And they’re loyal to ‘their’ particular store. If they love Hartnagel, they don’t shop at Angeles, and if they shop at Angeles, they don’t trade at Hartnagel. It’s the people who work at each that make the difference.” Customer surveys help keep the operation tuned to what’s working or what needs a tweak. “Plus, we make sure we have the things people use, so they don’t leave empty-handed. We adjust and add SKUs all the time. There were 15,000 SKUs when I came, and we’re now up to 22,000.” Lumber Traders’ business is 55% pro, 45% retail. Kelly intends to grow the walk-in trade, and social media is his chosen tool. He’s hired an in-house coordinator to assure continuity in the company’s branding and messages, which reach today’s wired consumer via Facebook, Twitter and Instagram. “We use these to promote our brand, our people, our products, and our web-page blog.” Community involvement is another win/win endeavor. Currently the company is sponsoring a Donate a Stud program to help in the construction of a medical clinic for lowincome residents—“and those may be our customers, our own staff or the waitress at the restaurant where we had lunch,” he brings it home. He’s also pumped to keep improving the value-added contents of his own toolbox. He achieved a B.S. in Business Administration in 2014 and an MBA soon after. (“Being employeeowned scared me, so I went back to college.”) Clearly he’s here to stay. “This is my place!” he swears. Carla Waldemar cwaldemar@comcast.net June 2017

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OLSEN On Sales By James Olsen

Competitive advantages T

OO MANY COMPANIES and salespeople believe they have competitive advantages that are actually illusions. Confidence is absolutely necessary in sales, but overconfidence is a problem. If we think good service or fast turnaround of customer requests gives us an edge and we don’t work on the things that truly give us a competitive advantage, we are hurting ourselves and our progress. Below is a list of “Fool’s Gold” items that are “The Basics”—not competitive advantages. Good service. Everyone gives good service. It’s expected. But we have to get the business before we can serve it. We cannot serve our way to the top of a sales business. Being agreeable. Likeability and agreeability are different and have different impacts. Some sellers confuse the two and sound like servants instead of business partners. Quality Products. When I ask GMs and owners if their quality is a competitive advantage, 100% say yes. When I ask salespeople the same question about 5% say yes. Industry Contacts. “Let’s hire this guy to sell for us. He knows everyone in the industry.” This is an oft-made mistake. Knowing people does not mean you have the ability or the desire (necessary) to close them. Product knowledge. Too many struggling sellers overestimate the power of product knowledge. In business to business sales the customer will know as much or more about the product as we do. Product knowledge in the hands of a master seller is powerful, but without sales it’s just a car without gas.

Real Advantages In their book The Challenger Sale, Mathew Dixon and Brent Adamson present the following statistics on why customers buy: 9% – Price to value (better price) 38% – Brand, product, service. 53% – Conversations with the sales rep (Sales Executive Council Research) Below are the things master sellers are doing in their conversations that give them a four-fold advantage over their competition: They are confident. Confidence is a combination of preparation and charm. It gives the master seller the ability to earn the customer’s trust and then be bold enough at the right moment to ask, repeatedly if needed, for the business. They are charming with everyone. Many sellers are not even charming with the buyer. The master seller treats everyone at the account with respect, interest and charm. This gives them allies at every account for life. When they need to get a hold of the buyer, when they need to have a smooth transition with a new buyer or they need to know that the customer is low on stock, the master seller can access the relationships with many people at their accounts.

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Always has something to offer. The seller that dominates never shows up just to “check in.” Positively, Naively, Assumptive. Master sellers come into every relationship, meeting and sales call with the attitude that people want to and will do business with them. The majority of sellers act the opposite. They act as if the customer “will probably say no.” Their tone when asking for the order is weak, for example, if they ask at all. Listen. Master sellers know how to shut up and listen. The buy signs come out of the customer’s mouth, not the salesperson’s. Customers will tell us how to sell them if we listen. Our customers want to talk to us and they yearn to be listened to. Listening is the secret weapon of sales. Warm vs. Pleasant. I don’t know if this is a screenedbased cultural phenomenon, but I have to teach many salespeople how to be warm vs. pleasant. Humans are perceptive; they know when we are merely going through the motions or if we are showing them real warmth. Master sellers are real with their customers and get treated in kind. Ask for the order a lot. Ninety percent of our competition doesn’t ask for the order at all. They present product and let the customer decide. The master seller asks for the order earlier and more often. We are not competing against the incompetent. Sellers who dominate do The Basics and more. Working on these competitive advantage skill-sets will set us apart on every call—and on our commission checks. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

THE REVENUE Growth Habit By Alex Goldfayn

Knowing what to do is different than doing it it’s 90 seconds. Do you have 90 seconds today for a powerful revenue growing activity? What about 900 seconds (15 minutes) for 10 quote follow-ups this week? That’s three minutes per day. So, make your plan, with specific communications actions and quantities, listed for the week, and then broken down day-by day. Make the plan on Friday, Saturday, Sunday or first thing Monday morning. (Making a plan for the week on Wednesday is too late.)

OU KNOW WHAT to do to grow sales significantly. And quickly. It’s not hard to do. I tell my audiences that “You already know everything I’m about to teach you.” The question is, are you doing it? For most people, the answer is a resounding “no!” For example, most people know that testimonials and referrals are among the best ways we have to grow business, right? Are we asking for them enough? Most would say no. We know that using the phone is better than sending emails, yet we default to email. We know that asking for the business every time we talk to a customer would make more money, yet we do not. We know that following up on quotes and proposals would get more of them closed, but there are many that we simply do not get to. So, knowing what to do, and actually doing it are two very different things. If we all did what we know to be the right thing, we’d all wake up in the morning and go exercise first thing. We’d all eat perfectly. After all, we know how. But just because we know these things doesn’t mean we do them. To start doing what we know we should do, we need to add two important ingredients: intentionality and discipine. Practically, this means there are three steps to start doing the important things we need to do to grow sales:

First, make a plan. Identify the actions and the quantities you want to do. That is, how many testimonials do you wish to ask for this week? What day(s) will you ask for them? How many referrals will you requet this week? When? How many quote follow-ups will you do this week? Ten is not too many. It’s merely two a day. For that matter, 20 is not too many. A quote follow by email takes 20 seconds. By phone—assuming you’re leaving a voice mail—

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Second, track your results. Did you ask for the referral? Give me a yes or a no next to each action you’ve listed each day. If so, what was the outcome? Did you get one? If so, who? When will you reach out to them? Detail your results for each action. It’s okay not to get a referral, but it’s not okay to not ask for one. At the end of the week, if you had 15 actions listed (three per day) you should have a result next eac of them. Third, turn your completed week’s plan to somebody who is expecting it. This final step is called accountability. Without which, nothing much happens. This person can be your boss, or your colleague, or your friend, or your spouse. Who the person is doesn’t matter. What does matter is this person has the strength, boldness and ability to talk with you about your implementation. That is, they need to ask you where your plan is when you don’t turn it in on time. If you got lazy and did just 11 of your 15 actions, they need to be able to ask you why. Making change requires intentionality and discipline. The three-step approach I just laid out faciliates both. It’s the same if you’d like to eat better, or exercise more, or keep a clean work space. What will you do this week to make it so? Now break it down day by day. Now track your results. How did you do? What did you do? Now share your weekly plan with somebody who can hold you accountable. This is the work. There is no magic bullet. There are no secrets. There is only the work. You know what to do. Now, will you do it? Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com (847) 459-6322 Building-Products.com

THINKING Ahead By Marc Saracco, NAWLA

Industry consolidation How to make it work for your company

eventually consolidate, and companies must decide which side of consolidation they want to be on. Sitting it out isn’t an option, and resisting the trend can become problematic, as doing so can ultimately take a toll on how important you remain to your suppliers and customers, according to Jeff McLendon, president and CEO of U.S. Lumber, Atlanta, Ga. There is good news, however. Consolidating can not only help your business stay sufficiently relevant, but also give your company and its employees opportunity to grow. There are many benefits of expanding through acquisitions. These processes can take time, but their value cannot be overstated. “Beyond the pure financial benefit, acquisitions immediately bolster your talent base, usually open up access to new products and customer segments, add experience, and enhance skillsets and competencies,” McLendon said. “Perhaps most notably, as you grow faster, you create opportunities for the best people, and you’re able to hold onto those individuals.” Mark Kasper, president and CEO of Amerhart, Green Bay, Wi., added, “There are a host of reasons to do an acquisition—increased territory, increased value to vendors, talent acquisition, [and] the numbers need to make sense.” Aligning the financial, strategic, LL INDUSTRIES

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and personnel dynamics can help ensure companies reap all the potential benefits consolidation has to offer. These elements have to fall into place in order to best take advantage of such an opportunity. However, “a big part of evaluating these potential changes means looking beyond solely the strategic and financial benefits a deal has for both sides, and assessing the cultural fit of the merging companies and the rationale behind the plan and execution,” McLendon noted. Kasper agreed: “Culture is critical. ‘Culture trumps strategy’ is a saying that holds true.”

Building Trust A focus on company culture and trust, particularly in regards to acquisitions, runs through the entire forest products industry. Various

June 2017

industry leaders emphasize the importance of understanding a company’s culture and its employees before, during, and after the acquisition process. “We want it to be clear that we are looking out for the best interests of those working at a company,” McLendon said. “All deals have tough spots, and some of them even bring out emotional challenges. If you can develop trust, instead of destroying it when you’re in the deal process, we have found that you can end up getting over those spots. This is true for the deal itself and for the integration process post-closing.” Acquisitions can be a learning opportunity for everyone involved. Mark Stock, senior vice president of human resources at Interfor, for example, said that his firm maintained “a constant open-door presence” during its acquisition of a

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A Special Series from North American Wholesale Lumber Association

sawmill, allowing employees to “ask questions and get support during this time of change.” The merger of Boston Cedar, Mansfield, Ma., with U.S. Lumber also provided new insights. “Going in, we knew we had to build a strong and stable relationship with any company we were taking on,” noted Mark Brennan, director of operations at U.S. Lumber. “The fact that Boston Cedar had a similar corporate culture streamlined this process and allowed us to engage with a good business that we believed in with a foundation built on trust.” In order to foster this dynamic, teams of senior managers or company leaders are often sent ahead of the acquisition to really get to know the personnel at the company being acquired. “We seek to understand the culture and employee sentiment about the upcoming change,” said Stock. “This guides us in our communication approach and helps us build relationships as we make the transition.” Brennan echoed this sentiment: “The managers are able to engage them and better understand their roles. [With Boston Cedar,] we didn’t pretend that we knew everything, but rather took the time to get to know those who were experts. Building this understanding of what people did, and who they were, allowed us to better form the kind of environment we wanted to create. We also found that being as transparent as we can be with our people, our suppliers and our customers all has helped to continue to build that trust.” Stock also emphasized the importance of transparency. “Transparent communications and being accessible for employees when they have questions or concerns are the tools that work best during all phases of the acquisition process,” he said. Ensuring that current employees feel welcome and invested during an acquisition can streamline the process for all parties, as well as ease the burden of transition. Stock noted that acquisitions are “an investment in the operation and its people,” and it is therefore important to show employees that they are valued. At Interfor, for example, “employees receive a signing bonus in their welcome package,” he said. The bonus showcases employee value, as well as “creates goodwill as we implement new employee practices and systems.” Stock also noted that the company makes a promise to employees “to build value for them by providing a career where they can contribute, grow, and prosper.” Brennan also noted the importance of looking for opportunities for people already in place at a company. “It was important for us to be able to provide the talented individuals we acquired with opportunities to grow—both professionally and personally,” he said. Spending time with the workers and within the company can therefore

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allow the incoming company to identify opportunities for somebody to transition into a new role. Acquisitions can be a scary process for the company that is being acquired; therefore, it is critical to build a relationship based on trust from the start so that everyone involved knows their best interests are being kept in mind. “It is important to value the knowledge you are acquiring,” said Stock. “Listen well and seek to understand the perspective of new employees. An open, accessible approach to building relationships with new employees is critical to their success and ours,” he advised.

Looking Forward It is important to keep looking ahead when responding to the coming wave of consolidation. This is facilitated by the increasingly prominent role of technology within the industry. “As new systems increasingly play a larger and broader role across the business, it becomes easier to spread your people and core infrastructure across the bigger company,” said Lawrence Newton, executive chairman of U.S. Lumber. Kasper also noted that technology, “when properly implemented, can do a few things, with one of the most important being taking cost out of the equation or spreading corporate cost over more sales.” Stock added that developments in technology helped Interfor remain proactive, rather than reactive, during the acquisition process. Smaller companies may have a more difficult time keeping up with industry progress, Kasper said, which is why bringing in a business can be beneficial to both parties. Pairing the desire all companies have to succeed with the proper investments makes it easier to build an environment of trust and opportunity, which will ensure that people on both sides of a consolidation deal buy in with both their heads and their hearts. – Marc Saracco is executive director of the North American Wholesale Lumber Association (www.nawla.org).

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 about how NAWLA can help your business at www.nawla.org.

June 2017

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TRANSFORMING Teams By Claudia St. John

Introducing… Gen Z!

AM BEWILDERED by the multi-tasking capabilities of my two teenage sons. It is not uncommon for them to be watching television while simultaneously playing a video game on a laptop computer and streaming a YouTube video on their smartphone—all while their Spotify playlist emanates from the Sonos speakers. How do they do this? Why do they do this? (Answer: I have no clue.) I have also long wondered what would become of these digital natives as they mature into adults and into employees in the workforce. And now we are beginning to learn. Let me introduce you to Generation Z! Generation Z, or the iGeneration, is the cohort of individuals born between 1995 and 2010. The first of them are just graduating from college this year. They are a large generation—approximately 73 million strong—and don’t mistake them for their older Millennial counterparts. They are very, very different. Raised by their tough-love, skeptical Generation X parents, Gen Z does not share the sense of entitlement and

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need for feedback and validation that many consider typical of the Baby Boomer-raised Millennial generation. Instead, Generation Z individuals tend to be independent, competitive, hard-working and pragmatic. Here are some interesting statistics that were recently reported in an article entitled “Move Over, Millennials; Generation Z Is Here” by the Society for Human Resource Management (SHRM): • 61% of Generation Z individuals surveyed said they plan to stay with their company for more than 10 years • 76% are willing to start at the bottom of the corporate ladder and work their way up • 72% reported that they are competitive with those individuals doing the same job • 91% reported that technical sophistication would impact their interest in a company, and salary, benefits and opportunity for advancement are much more important than finding a “meaningful” job (as is the priority for Millennials) • 84% report preferring face-to-face communication ahead of digital communication • 75% would like multiple roles within a company, such as being responsible for both sales and product development • 62% would prefer to customize their own career path rather than having the corporation develop it for them So what in their backgrounds has made these individuals so different from their Millennial counterparts? First, the style of parenting they encountered. Whereas Millennials were raised by self-esteem-building, optimistic Baby Boomers, Gen Z’s parents were the original self-reliant, skeptical latch-key kids who imparted their work-hard-andpay-your-dues work ethic onto their children. As a result, much more so than Millennials, Gen Z are exceedingly career-focused and strongly entrepreneurial. They tend to be anxious and mindful of their future and, as a result, are willing to work hard to advance in their careers. And whereas Millennials are true team players, Gen Z individuals are independent, competitive and much more individualistic in their work habits. As a result, they will leap at an opportunity that has sufficient salary, benefits and, importantly, lots of room for growth. They are also true digital natives, which is why they are also called the iGeneration. While Millennials grew up with Building-Products.com

computers and social media, Generation Z individuals can’t remember a time before smartphones and tend to rely on them to collaborate, research, edit and post content in real time. It is this digital proficiency that enables them to take in information instantly. Their reliance on Google and Wikipedia, coupled with their natural-born skepticism, means these individuals are less likely to simply trust authority figures and instead rely on their own access to research and information. And unlike their “over-sharing” Millennial counterparts, Gen Z individuals are much more concerned with privacy and turn to social media apps like Snapchat to protect their communications. They are much more suspicious of big organizations’ use of their data and are likely to reject marketing efforts that are pushed at them based on their online footprint. The Generation Z population also came of age after the Great Recession and therefore are pragmatic and independent, realizing that competition for well-paying jobs is fierce. As a result, they put money and job security at the top of the list of criteria that they are looking for in a job. And this competitive independence means they want to be judged on their own merits, not on the merits of a collaborative group. As a do-it-yourself generation, they are always looking for ways to work more efficiently through use of technology, and they maintain a critical eye to processes and practices. And they are willing to hustle to make additional income—their entrepreneurial spirit means they will likely work in their formal job and pursue income-generating hobbies and after-hour gigs as well.

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So what does this mean for those of us preparing to hire Gen Z workers? The things we know about this cohort so far is that they want: • Good paying jobs with benefits • Stable, secure jobs • Clear lines of sight for advancement and career growth • Opportunities to learn and develop their careers in a variety of roles within a company • Honesty This last part is critical for these individuals. They are less motivated by a company’s brand name or market reputation. Instead, they want to know, trust and respect their leaders. For solid, small to mid-sized businesses, all of this suggests we will both be able to satisfy their needs and benefit from their creative industriousness. I must admit, having two of these Gen Z individuals in my house today, I struggle to see some of this hard-working ethos—if only they would put the same effort into cleaning their rooms and pursuing their studies. That said, in professional settings outside of our home, it’s clear these young adults (and in many instances, children) take workplace obligations seriously and are willing to do what it takes to make money and move ahead. Move over Generation Y, Generation Z is on the way. Claudia St. John Affinity HR Group, Inc. claudia@affinityhrgroup.com

June 2017

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Softwood Duty to Spur Importers to Look Abroad for New Sources High import tariffs on Canadian lumber imports are likely to increase U.S. lumber production as well as shipments from Europe, New Zealand and Latin America, predicts Wood Resource Quarterly. Canadian wood accounted for 32% of U.S. lumber consumption in 2016. While the U.S. will remain its primary customer, WRQ expected Canada to also continue developing new markets of its own in Asia, Europe, the Middle East, and North Africa. The expected dialback follows on the U.S. Department of Commerce’s announcement that it would be placing countervailing duties on softwood lumber imports from Canada (see May, page 30).

Atlantis Rail Opens West Coast DC Atlantis Rail Systems, Plymouth, Ma., is looking westward to expand, with the May 30 grand opening of a new distribution center in Las Vegas, Nv. Stocked with over 1,600 SKU’s, Atlantis Rail West will provide standard FedEx Ground service in one-day to most of Southern California, Arizona and Nevada; two-day service to the remainder of California, Arizona, Nevada, New Mexico, Utah and most of Colorado, Idaho and Wyoming; and three-day service to all other points in the western US. “Due to company growth, we were presented with space restrictions at our Plymouth, Ma., headquarters that would impede additional planned growth of both divisions,” said Patrick Striebel, president of Atlantis Rail and sister company Suncor Stainless.

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 32

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June 2017

SUPPLIER Briefs Hayden Mercantile, Steamboat Springs, Co., is building a 5,000-sq. ft. addition onto its grocery store to house an Ace Hardware. Gorman Brothers Lumber, West Bank, B.C., placed on hold expansion plans for its Oroville Reman & Reload, Oroville, Wa., due to impending softwood duties. ABC Supply recently added branches in Vancouver, Wa. (Jake Wise mgr.), and a second in Colorado Springs, Co. (Andrew Bindl, mgr.). Capital Lumber Co. , Phoenix, Az., will distribute Louisiana Pacific’s “Smart” product lines, including LP SmartSide siding & trim and LP FlameBlock panels, in Central and Northern California, and western Nevada from its Healdsburg and Sacramento, Ca., distribution centers.

LP has expanded its warranty for SmartSide treated engineered wood siding to cover hail damage. Huttig Building Products is now distributing Knauf Insulation products from its 27 distribution centers. Koppers Performance Chemicals’ MicroPro micronized copper wood preservative technology is celebrating 10 years of commercial production. Anniversary: Arrow Lumber & Hardware, Eatonville, Wa., 20th.

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.)

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.

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NM Dealer Adds 2nd Store Randall Lumber & Hardware, Taos, N.M., has acquired the former Chamisa Feeds, Taos, from longtime owners John and Marion Summers. Randall’s North will offer “a condensed version” of the main store, with 1,700 sq. ft. of selling space, a 4acre yard, and a staff of five, currently headed by Hilario Serrano, director of marketing/retail operations. Longtime Chamisa Feeds employee Rose Santistevan has been retained to aid the transition into the farm-andranch sector, and eventually to run the branch.

Store Switching to Online Crown City Hardware, Pasadena, Ca., is converting to an online business after 100 years of service. The store closed its doors on May 10 and owner Richard Perris said he planned to reopen the business shortly, primarily as an online retailer. He said the store will still be taking walk-in customers, but the emphasis will be on the web—90% of the business, as the store will be more of a warehouse. While the closure was said to be abrupt, with some customers caught off guard and several employees laid

off, Perris emphasized his main focus now is on existing customers and vendors. Crown City most recently employed 11, down from a peak of 40. Perris hoped the online store would be up and running by early June.

CLT Producer SFI Certified SmartLam LLC, Columbia Falls, Mt., has become the first U.S. manufacturer of cross-laminated timber to be certified to the Sustainable Forestry Initiative 2015-2019 Chain-ofCustody Standard. SmartLam is also the first manufacturer to produce CLT in the U.S., producing products for a variety of uses, including floor, roof and wall systems.

operate under the leadership of president Craig Dirickson as Lowry’s, Systems Waterproofing Supply, and Can-Do Supply. Lowry’s co-owners Keith and Michael Musante, who will both stay on, said, “Becoming part of a public company with a presence across the entire United States and Canada creates opportunities for Lowry’s to grow our business beyond what we could have done on our own and offers our employees career advancement options that are unique to the distribution industry, all while maintaining the entrepreneurial spirt and brand loyalty to Lowry’s, SWS and Can-Do that we have worked so hard to develop over the last 40 years.”

Beacon Takes Over Lowry’s Beacon Roofing Supply, Herndon, Va., has acquired 11-unit Lowry’s Specialty Distribution, which distributes waterproofing products, sealants and air barriers in California, Hawaii, Utah and Arizona. Family-owned for more than 40 years, Lowry’s has seven branches in California, two in Hawaii, and one each in Utah and Arizona. The deal marks Beacon’s entry into Hawaii. The 11 branches will continue to

Huttig, Fastener Maker Team Huttig Building Products, St. Louis, Mo., has struck a manufacturing deal with American Fasteners Co., Jurupa Valley, Ca., expanding Huttig’s fastener offerings. AFC will produce collated fasteners in the Southwest U.S., offered under the Huttig-Grip brand, including plastic-strip round-head framing nails as well as paper-tape metal-connector nails. This domestic production will complement Huttig’s complete fastener offering. “AFC is exactly the type of strategic partner we’re looking for,” said Bob Furio, executive VP of HuttigGrip. “What they bring to this relationship aligns perfectly with what our customer network is demanding and allows us to respond to rapid market shifts allowing our customers to better manage their inventory.”

Boral Finalizes Acquisition Boral Ltd. has completed its acquisition of Headwaters Inc., South Jordan, Ut., a leading building products manufacturer and fly ash marketer in North America. Headwaters produces 29 building products brands, including siding and trim (including Kleer, Mid-America Siding, Atlantic shutters, Tapco Tools, and Clubhouse deck and rail), roofing (Entegra, Inspire), stone (El Dorado), and windows (Krestmark, Legacy). Headwaters is now a wholly owned subsidiary of Boral Ltd. and no longer a publicly traded company. Boral USA and Headwaters combined will form a new division named Boral North America based in Atlanta, Ga., the location of Boral’s current U.S. headquarters.

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June 2017

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June 2017

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EN ROUTE: One-by-one branch manager Adam Sebree and marketing manager Michelle Overbeck visited 10 schools to deliver soil bags and lumber.

Schools get a little help from Big Creek Big Creek Lumber’s school garden program donated garden bed grants to 10 schools in Ortega and La Honda, Ca., as well as neighboring areas. Now in its second year, the program’s grant applications were submitted in the fall and the kits were delivered direct to selected schools in the spring. Garden kits included redwood lumber from Big Creek, soil from Sun Land Garden Products, and gardening tools courtesy of Orgill. “The gardens utilize sustainably harvested redwood and are great learning tools for gardening and healthy lifestyles,” said Big Creek’s Michelle Overbeck.

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TEAMWORK: Big Creek donated the materials to different schools in the area. Here students from La Honda Elementary, La Honda, Ca., helped with the heavy lifting.

June 2017

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MARGIN Builders By Richard Wallace & Erin Graham, Southern Forest Products Association

Clinics for weekend projects sell lumber 2. Schedule local newspaper and radio advertising. Have customers sign up in advance for the clinic when visiting your store. 3. Contact your supplier sales reps of tools, hardware, paints and stains for demonstrations of their lines during the clinics. Some value-added sales are happening here. Suppliers may even want to sponsor your event and help with advertising expenses. 4. Invite a local remodeler or a building inspector to speak.

5. Make a display of pressure-treated southern pine lumber products, showing typical details and proper connections.

DOGHOUSES, sandboxes and picnic tables are basic DIY projects to build a clinic around.

ideas to spark some energy into your DIY customers? Inspire them to start small. Today’s homeowner is consumed with family and career. Sure, woodworking might be a hobby, but why can’t it also be an activity shared by several family members who have never built anything before? A single do-it-yourself project that can be completed in a weekend may not sell a truckload of lumber, but think of the basic DIY project as one of volume. A planter bench, a sandbox or kiddy picnic table, even a doghouse—simple projects by the hundreds can ring up sizable sales over a season. And the Southern Forest Products Association can help with basic project plans available as free PDF downloads from the online DIY Center at SouthernPine.com. Lumber retailers find that customer education is an effective method of increasing sales of materials, tools and hardware to build outdoor projects. Many sponsor “how-tobuild” clinics for homeowners looking for a weekend activity. Here are 10 key points to consider when planning a DIY project clinic: O YOU NEED

1. Plan well in advance—at least 30 days—develop flyers and posters for in-store displays and local distribution. Of course, don’t forget social media or that database of existing accounts—your pro customers have families, too! 38

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June 2017

6. Display samples of the completed project to inspire attendance ahead of your event. Display a typical list of materials required. 7. To find out who is attending, have a sign-up book handy or provide entry blanks for a door prize in advance of your clinic. 8. Arrange to have comfortable chairs, a well-lit, spacious area, convenient restroom facilities, and refreshments for your clinic. Your DIY project demo should last no more than 30 minutes, holding the attention of the younger builders. 9. Make sure speakers are knowledgeable—introduce them and describe their background. 10. When the event kicks off, your how-to presentation should include: • typical materials and tools required • estimating costs, ordering materials • tools, nails, bolts, brackets, screws, and other details • a step-by-step demonstration of the actual construction Finally, ask for the order. Provide a checklist of needed materials, tools and optional finishes… it becomes their shopping list. Most likely, your DIY clinic attendees are ready to build! As an extension of the DIY clinic, retailers can conduct construction contests and award prizes to homeowners who bring in photos of their newly completed projects, built with southern pine lumber supplied by their location. Building-Products.com

MOVERS & Shakers Chris Karabinus, ex-Pacific Supply, has been named mgr. of Reno Lumber, Carson City, Nv. Jack Chase has retired from Sierra Pacific Industries, Redding, Ca., after 40+ years in the industry, the last 33 with SPI. Scott Blackburn, ex-BMD, has been named president of Evergreen Lumber, Port Orchard, Wa. Anthony Daddario, ex-Ganahl Lumber, is new to builder services in Southern California with Simpson Strong-Tie. He is based in Corona, Ca. Bobby Hermosillo, ex-Edwards Building Center, is new to Builders FirstSource/ProBuild, handling outside sales from Vail to Aspen, Co. Justin Boyer is a new commodities trader with Buckeye Pacific, Portland, Or. Jackie Vega, ex-Kelleher Corp., is now an account mgr. with Capital Lumber, Chino, Ca. Parker Simmons has moved to sales at Ganahl Lumber, Costa Mesa, Ca. Jake Moriniti is now a junior trader with Collins, Wilsonville, Or.

Shannon Mendez, ex-BMD, is a new sales & purchasing specialist with Sherwood Lumber, Stockton, Ca. Rob Wilson, ex-Anaheim Millwork, has acquired Action Saw & Abrasive Products, Corona, Ca. Scott Cranfill has been promoted to sales mgr. of High Cascade Forest, Carson, Wa., succeeding Brad Buhman, who has retired after nearly 42 years with the company. Niki Depew, ex-Brio, has joined Weather Shield Windows & Doors, as regional sales mgr. for the West. Jim Barbes has been promoted to VP of natioinal sales for 84 Lumber, Eighty Four, Pa. Lanesha Minnix has been named senior VP and general counsel for BMC Stock Holdings, Atlanta, Ga. Michael Collins has been appointed mgr. of codes & standards for RedBuilt, Boise, Id. Robb Rugg, ex-James Hardie, is now executive director of the Drake Group LLC. Bill Parsons, WoodWorks, Boise, Id., has been promoted to vice president of operations.

Curt Stevens is retiring June 30 after nearly 20 years with LouisianaPacific Corp., Nashville, Tn., the last five as CEO. Brad Southern will succeed him, effective July 1. Cally Fromme, VP of business development, Kodiak Building Partners, Denver, Co., and W. Craig Myers were appointed to the board of directors at Pennsylvania & Indiana Lumbermens Mutual Insurance Cos., Philadelphia, Pa. Tom Andrews has joined Do it Best Corp., Fort Wayne, In., as divisional merchandise mgr., overseeing hand tools, plumbing, cleaning, housewares and INCOM departments. Matt Roughen, ex-Brasscraft, is now director of business development for Lonza, Atlanta, Ga. Dylan Snyder has joined Dur-AFlex’s technical services team as technical service mgr.-West. Carla Aguiar, Bessey Tools North America, has been appointed to board of the Association of Woodworking & Furnishings Suppliers, Anaheim, Ca. Howie Doohan is the new greeter at Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Santa Fe Springs, Ca • www.hufflumber.net

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NEW Products

Radon Barrier Invisible Deck Fasteners Simpson Strong-Tie has redesigned its EB-TY hidden deck fasteners for premium wood decking in both residential and commercial applications. The system provides professional builders and doit-yourselfers with a unique method of installing deck boards that leaves the fasteners virtually invisible.

AFM Corp.’s goal was to make Radon Guard an imperative ally in the battle against the toxic, nearly omnipresent dangers of radon gas. The product mitigates radon and other subsurface gases through effective ventilation. It simultaneously acts as an underslab insulation and provides a capillary break all in a single panel.

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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”

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At Royal Pacific youâ&#x20AC;&#x2122;ll pay no more, but get extra. We guarantee it.

Clever Cedar Sidewall Solution By avoiding edging Extra A and Clear B grade, SBC Sidewall Select cedar shingles are the perfect sidewall solution. Offered in eight stock colors, the shingles are not only free from defects on the exposed surface, but also wider for faster installation. They are composed of a mix of the two grades, which simplifies inventory management.

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*.

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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*.

Seal Before Installing

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*.

Kemper Systemâ&#x20AC;&#x2122;s Kemperol is a solvent-free, fully-reinforced membrane system for sealing kitchens, bathrooms, locker rooms, laundry and utility areas before installing tile or stone. The seamless indoor waterproofing system is engineered to protect the underlying structure, and tile or stone can usually be installed the next day. The system can also be used to seal shower stalls, floors, walls, counters and backsplashes in any wet indoor area.

Providing Customer Satisfaction in All We Do

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* See product warranty for details. Hi-borÂŽ, FireProÂŽ and Advance GuardÂŽ treated wood products are produced by independently owned and operated wood treating facilities. Hi-borÂŽ, FireProÂŽ and Advance GuardÂŽ are registered trademarks of Koppers, Inc. ÂŠ10/2014

(800) 541-5455

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June 2017

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Clean-Look Trim

Palm Dimension Smith & Fong Co. has commercialized a line of palm dimensional lumber that complements the company’s bamboo dimensional lumber. The species is ideal for freestanding furniture pieces and casework. Palm can be laminated into blocks or square dowels and turned on a lathe. Additionally, the lumber can be sliced into thin veneer and applied to a plywood base for further fabrication or veneered and laminated in a form press.

James Hardie Building Products has introduced four new profiles to its Artisan Siding line and expanded its Reveal Panel System. The system is favored by architects for its clean, contemporary appearance and includes panels, fasteners and two trim options. Reveal Recess trim blends siding with trim for a smooth look that creates the illusion of lightness, while Surround trim frames the panels and adds geometric definition for an industrial aesthetic.

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n JAMESHARDIE.COM

(866) 835-9859

(888) 542-7343

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” TREATERS

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected

909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – fwl-fwp@pacbell.net

www.fontanawholesalelumber.com

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Reliable Louvers

Stay Charged Milwaukee Tool has a solution to meet the demand for convenient charging. Its new M18 & M12 Vehicle Charger plugs into 12V DC outlets and accepts all M18 and M12 battery packs, charging them sequentially. The charger has protective electronics to monitor the voltage of the user’s car battery and will automatically shut down to prevent excessive discharge if the battery voltage dips too low.

Ruskin has introduced the EME720 7” horizontal louver, which features 56% free area and combines a continuous-blade architectural appearance with the performance of a wind-driven rain-resistant louver. Its architectural mullion is recessed, notched in the blade, and utilizes drain pockets, allowing water to drain away while contributing to an appearance of one continuous louver stability.

n RUSKIN.COM

(816) 761-7476

n MILWAUKEETOOL.COM (800) 729-3878

The Perfect Light Pelican Products’ rechargeable Pelican LED flashlights include a removable right angle adapter accessory with clip to provide hands-free lighting and an articulating head to direct the light where it is needed. The model boasts lighter, ultra-compact, IPX8 submersible polymer construction and a “boost mode,” which temporarily amps the light output.

n PELICAN.COM (800) 473-5422

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A NUMBER of new products generated intense buzz at the recent National Hardware Show in Las Vegas, including [1] a Star Wars themed

portable gas grill, [2] Simpson Strong-Tie’s Outdoor Accents decorative hardware, and [3] the Seat Rack carseat-top building material carrier.

Coolest products on display at National Hardware Show The National Hardware Show had a great turnout May 9-11 from attendees and exhibitors who came to hear from expert industry speakers and learn about new products at the Las Vegas Convention Center, Las Vegas, Nv. Nine different award programs recognized a range of innovative new products. New Product Launch Awards were presented to Kreg Tool’s Accu-Cut circular saw guide track system, PLOTT’s Miletus and Cubit devices, and Snow Joe’s 40-volt Max 1160 PSI cordless pressure washer. NRHA honored 36 different products with Retailers’ Choice Awards, including Regal ideas’ Telesteps telescopic climbing products, Loggerhead Tools’ Bionic Wrench, and Mywoodwall paneling.

One lucky retailer got to pursue its plans for a capital improvement for their store after winning $100,000 in Reimagine Retail Program. When Caribou Jack’s Trading

EXHIBITORS included [4] Ernie Couillard, Lily Lee, and Andrew Pantelides, who took home a Retailers Choice Award for Regal Ideas’ Telesteps engineered climbing products. [5] Jim Miller, Don Hagedorn. [6] Mark Reum, Jason Varney. [7] Jackie Mathes, Lynne Liebertz. [8]

Scott Hensley, Derek Clay, Cyndi Chandler, David Lawson. [9] Sabrina Seccareccia, Shannon Bertraud. [10] Ron Hansen, Josh Hansen, Tod Kintz. [11] Charlie Wait, Jim Winn.

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TURNOUT was strong for the National Hardware Show May 9-11 at the Las Vegas Convention Center.

Celebrating our 50th anniversary 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. • 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 Building-Products.com

RP Lumber Co., Edwardsville, Il.; and Matthew Payzant, Payzant Home Hardware in Nova Scotia. NRHA also feted four retailers as “Top Guns”—Scott Jerousek, Farm & Home Hardware, Wellington, Oh.; Jonathan Miller, Miller Hardware, Valdosta, Ga.; Diana Brunjes Newton, Bay Hardware, Seal Beach, Ca.; and Matt Woods, Woods Hardware, Cincinnati, Oh.

GENUINE BURMESE TEAK Lumber π Decking π Siding π Flooring F.E.Q., KD, Rough π 4/4, 5/4, 6/4, 8/4, 12/4 Custom Milling Available Pulled to width and length π Rift Sawn Upon Request Old Growth. LEGALLY Harvested Shipping directly from Myanmar & stocked in the USA 97 years of continuous service

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June 2017

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tion recognized eight Young Retailer of the Year honorees—Reed “RJ” McDaniel Jr., B&B Hardware, Milan, Il.; Joseph Franquinha, Crest True Value Hardware & Urban Garden Center, Brooklyn, N.Y.; Jackie Sacks, Round Top Mercantile, Round Top, Tx.; Bobby Heuser, Heuser Ace Hardware, Bluffton, S.C.; Camille Gibson, Mark’s Ace Hardware, Tucson, Az.; Jarrod Haines, Buchheit, House Springs, Mi.; Jason Plummer,

NATIONAL HARDWARE SHOW

Co., Soda Springs, Id., was announced as winner, owner Robert Lau said his staff will use the money to build an instore café where they can host grilling and cooking events and provide a space for locals to use at no charge. There were a variety of featured areas for attendees to visit across the show floor and throughout the convention center, and guests had ample opportunities to preview new and upcoming products. The Featured Product Gallery included New Product World, where retailers discovered new innovations and trends. At New Product Launch, attendees were able to find new products that hadn’t hit the market yet. The Product Review & Vetting program allowed inventors to get their latest products before a bigger audience that included distributors, co-ops and other retailers. Before the show, participants turned in product samples, which were reviewed by buyers from a dozen companies including Ace Hardware, Distribution America, Sears and more. The Inventors Spotlight featured products that may not have yet been on the market but could be “the next big thing” in the industry. National Retail Hardware Associa-

NAWLA VANCOUVER Photos by The Merchant

COMING days after the announcement that the U.S. would reinstitute tariffs on the Canadian softwood imports, North American Wholesale Lumber Associationâ&#x20AC;&#x2122;s Vancouver, B.C., regional meeting featured a series of impassioned speakers. [1] Panelists Susan Yurkovich, president/CEO, Council of Forest Industries; Jason Fisher, associate deputy minister of forestry for B.C.; and Duncan Davis, president/CEO, Interfor. [2] Todd Perry, Barry King, Brian Crossley, Brad Flitton. [3] Brad Taylor, Hayden Malz. [4] Jack Hetherington, Carl Dobler. [5] Dave Pellizzari,

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June 2017

Chris Tuck, Chris Sainas. [6] Sarah Fryer, Michael McInnes. [7] Paul Harder, Tony Darling. [8] Dale Bartsch, Stewart Clark. [9] Jack Alley, Tom Sellin. [10] Laura Lee McKenzie, Michael McInnes, Sheila Rodgers, Brian Cedarquist. [11] Dave Smith. [12] Jerry Lawson, Ken Friesen. [13] Peter Barton, Rod Sims, Richard Robertson, Alan Huston. [14] Steve Clitheroe. [15] Jack Alley, Carol Green. [16] Mike Pidlisecky, Dan Semsak, Shawn Batis, Matt Caissie. [17] Matt Pritchard, Anthony Muck. [18] Kevin Pankratz, Ian McLean. (More photos on next 2 pages) Building-Products.com

NAWLA VANCOUVER Photos by The Merchant

NAWLA held its BC regional meeting April 27 in Vancouver (continued from previous page): [19] Kip Fotheringham, Marc Saracco, Bart Bender. [20] Dianne Hackman, Kevin Ouellette, Bindy Sangara. [21] Glenn Mattice, Aaron Bayntum, Mark Kenny. [22] Chris Boyd, Rod McKay, John Kuch. [23] Chris Ahren, Kent Beveridge. [24] Michael Betz, Jack Draper. [25] Paul Saini, JM Broschart. [26] Sandy McKellar, Kelly Building-Products.com

McCloskey. [27] Don McGregor, Peggy Hsu. [28] Dan Bouchard. [29] Steve Winstone. [30] Peter Keyes, Rob Cook, Darren Duchi. [31] John Bal, Carl Dobler, Pierre-Louis Cartier, Bob Aulakn, Vince Bulic. [32] Jake Power, Kirk Nagy. [33] Maria Frigo, Scott Elston. [34] Shail Parihar, Charlie Thorpe, Matt Froese, Steve Galvin, Greg Tanner, Warren Reece, Matt Dolan, Darcy Mercer. June 2017

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2ND GROWTH Photos by The Merchant

WEST COAST Lumber & Building Material Association’s 2nd Growth group learned how to find their “inner super hero” from motivational speaker Wayne Hiede during its May 4 meeting at Embassy Suites, Brea, Ca. [1] Jean Henning and Alex Uniak flank Wayne Hiede and his service dog. [2] Members listen to keynoter Hiede. [3] Heather Sorrendino , Matt Oubre, Vanessa Herrera, Marc Spitz, Reyes Romero, Dave Owen, Brad Schneider. [4] Jason Rutledge, Mo Shearer, Gerry

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June 2017

Perez. [5] Betsy Bendix. [6] Paul Corso, Kathy Rutledge. [7] Steve Brown, Doug Willis, Bryce McKee. [8] Shawn Knight, Nancy Shaw. [9] Santos Leon, Stephanie Barrios, Ramiro Roman. [10] Bill Gaita, Aaron Castaneda, Jackie Vega, Bert McKee. [11] Terry Rasmussen, Natalie Allen, Fia Faumuina. [12] Marc Spitz, Al Reed. [13] Jennifer Aguilar, Elena Estrada, Glenda DeFrange, Lizzie Owen, Marc Silberman. [14] Steve Schroeder, Jean Henning, Alec Uniack. Building-Products.com

ASSOCIATION Update North American Wholesale Lumber Association’s upcoming regional meeting June 27 in San Diego, Ca., will feature a moderated panel to discuss the state of new home building in California and its influence on national trends. Panelists include Dan Bridleman, senior VP-sustainability, technology & strategic sourcing, KB Home; Nate Jorgensen, VP-engineered wood products, Boise Cascade; and Mark Ganahl, president, Ganahl Lumber. Guests will meet at Hilton San Diego Gaslamp Quarter and will have networking opportunities at a cocktail reception and San Diego Padres game. Tacoma-Olympia Hoo-Hoo Club is preparing for its next meeting June 21 in Tacoma, Wa. Registration is still open for Southern California HooHoo’s annual Don Gregson Memorial Golf Tournament June 9 at San Dimas Golf Course, San Dimas, Ca. Forest Products Society has chosen “The Future of the Global Forest Products Industry” as the theme for its 71st annual convention June 26-28 in Starkville, Ms.

New Study Divulges Building Trends Revealed in PCBC Study PCBC, the largest annual homebuilding trade show in the western U.S., has released its comprehensive, nationwide 2017 Trends Report. Among the findings: • After a strong 2016, capital market experts remain optimistic—with 91% of investors bullish on access to equity capital—and expect the investment volume to continue at a solid pace in 2017; gateway coastal markets will be the biggest targets for capital deployment. • Multifamily is facing numerous opportunities, including increased apartment demand from Gen Z and Baby Boomers, allowing for a healthy, balanced market for the foreseeable future. Developers are also taking heed to marketplace disruptions by installing package lockers/rooms to

accommodate online grocery deliveries, ride share waiting rooms, and functional smart home technology. • With a new presidential administration and a focus on stimulating job growth, forecasters predict a positive impact on housing demand. Reduced levels of single-family home supply, coupled with favorable demographic groups looking to purchase, all point to growth for residential construction in the years ahead, even if interest rates remain in the range of 4.5%. • The on-demand business model (think Amazon Prime and Uber) continues to transform options and expectations for consumers and extends to home design, green spaces, retail planning and more. They want more immersive involvement with places and spaces and that is how value will be created and realized in the re-defined landscape of economics, technology and demographics. To dive deeper into these housing benchmarks, visit PCBC June 27-29 in San Diego, Ca., or request a free copy of the full report, at www.pcbc.com/trends-2017.

Enviros Turn to Industry for Help An environmental group has turned to the lumber industry to bring old-growth forests back to life. The Nature Conservancy hopes to restore diversity to forests along Washington’s Salmon Coast. At the 8,000acre Ellsworth Creek Preserve at Willapa Bay, Wa., they brought on B&M Logging, Chehalis, Wa., to begin restoration logging. The process consists of thinning dense stands to promote bigger, stronger trees that will eventually mature from a tree farm into an old growth forest. “Rather than wait hundreds of years for it to happen passively, we want to speed up the process so maybe it only takes us 80 to 100 years to start getting the functions of old growth forest,” said Bill Lecture, forester for the Conservancy at Willapa Bay. The work at Ellsworth was recently FSC certified and earned the Conservancy $560,000 in stimulus funds. The trees that are cut are too small to be sold and are left on the ground to be reabsorbed back into the earth. To date, it has thinned 1,800 acres in young stands.

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June 2017

The Merchant Magazine

CLASSIFIED Marketplace HELP WANTED Rates: $1.20 per word (25 word minimum). 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. Send ad to Fax 714-486-2745 or david@building-products.com. Checks payable to 526 Media Group. Deadline: 18th of previous month. Questions? Call (714) 486-2735.

INDUSTRY NEWS AS IT HAPPENS VISIT

BUILDING-PRODUCTS.COM

TALK Back

started with his brother in 1884. We have been continually running lumberyards in Southern California’s urban landscape for 133 years—our 10th location will be opening very soon. I know you know this about us, but you may not have known that we were probably the “first retail lumber business west of the Mississippi.” You may want to let Compton Lumber down easy when you tell them they are the second retail lumber business to open west of the Mississippi.

We welcome your feedback. Send comments to letters@building-products.com.

133 > 125 I wanted to let you know we are big fans over here of The Merchant Magazine. Like you, I’m always looking for stories that would interest my readers and page 64 of the May 2017 issue caught my eye (“125 Years with Seattle Dealer”)! Ganahl Lumber prides itself in having a family-owned and employee-owned business that Peter’s greatgrandfather, Franz Joseph Ganahl,

Vicki Hale Ganahl Lumber Anaheim, Ca.

ADVERTISERS Index

ALL COAST FOREST PRODUCTS, Cloverdale, Ca., a leading wholesale lumber distributor and manufacturer in Northern California, is looking for energetic and self-motivated people to join our team. Lumber experience is preferred for the sales position and required for the purchasing position we are offering. Competitive salary and benefits. Those interested should send a resume listing their qualifications to Duane Nelson, Sales Manager, at dnelson@all-coast.com.

IN Memoriam Ruby Eileen Ireland Purdy, 90, who worked for her parents’ Deer Lick Lumber Co., Running Springs, Ca., died April 18 in St. George, Ut. She and her husband joined the family business in 1957, with Ruby as bookkeeper and paint expert. James J. Reyes, 56, Colorado lumberman, passed away May 3. He spent the last 11 years of his lengthy lumber career with Boulder Lumber. Robert Joseph Miller, 76, foreman for over 50 years of SDS Lumber Co., Bingen, Wa., died April 29.

REA Jet [www.reajetus.com]

All-Coast Forest Products [www.all-coast.com]

Reclaimed Woods of the World [reclaimedwoodsoftheworld.com] 47

Allura [www.allurausa.com]

Redwood Empire [www.redwoodemp.com]

C&E Lumber Co. [www.lodgepolepine.com]

Reel Lumber Service [www.reellumber.com]

Capital [www.capital-lumber.com]

Roseburg Forest Products [www.roseburg.com]

CMPC [www.cmpc.com]

RoyOMartin [www.royomartin.com]

Fontana Wholesale Lumber [fontanawholesalelumber.com] 44

Royal Pacific Industries

Huff Lumber Co.

Seneca Sawmill [www.senecasawmill.com]

Jones Wholesale Lumber [www.joneswholesale.com]

Simpson Strong-Tie [www.strongtie.com]

Keller Lumber

Straight Line Transport [www.straight-line-transport.com]

Swaner Hardwood Co. [www.swanerhardwood.com]

Swanson Group Sales Co. [www.swansongroupinc.com]

Tando Building Products [www.tandobp.com]

Kop-Coat [www.kop-coat.com]

Cover III

Lonza Wood Protection [www.wolmanizedwood.com] Norbord Industries [www.norbord.com]

3 Cover II

Norman Distribution Inc. [www.normandist.com] North American Wholesale Lumber Assn. [nawla.org]

51 41, 53

TruWood-Collins [www.truwoodsiding.com]

Cover I, Cover IV

Universal Forest Products [www.ufpedge.com]

Pacific Woodtech [www.pacificwoodtech.com]

Weyerhaeuser [www.weyerhaeuser.com]

Pelican Bay Forest Products [www.pelicanbayfp.com]

Wolmanized Wood [www.wolmanizedwood.com]

Peterman Lumber Inc. [www.petermanlumber.com]

Woodtone Industries [www.woodtone.com]

The Merchant Magazine

June 2017

Building-Products.com

DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. West Coast Lumber & Building Material Association – June 8, golf tournament, Rancho Solano Golf Course, Fairfield, Ca.; (800) 2664344; www.lumberassociation.org. Southern California Hoo-Hoo Club – June 9, annual Don Gregson Memorial Golf Tournament, San Dimas Golf Course, San Dimas, Ca.; (323) 559-1958; www.hoohoo117.org.

New Regional Meeting! CONNECT

LEAARN

CREATE T

Tacoma-Olympia Hoo-Hoo Club – June 9, golf tournament, Eagles Pride Golf Course, Lakewood, Wa.; tbilski614@aol.com. Western States Roofing Contractors Association – June 11-13, convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com. National Lawn & Garden Show – June 13-15, Chicago, Il.; (888) 316-0226; www.nlgshow.com. Tacoma-Olympia Hoo-Hoo Club – June 21, board meeting, Tacoma, Wa.; June 24, A Day at the Races, Emerald Downs, Auburn Wa.; (253) 531-1834; tbilski614@aol.com. Forest Products Society – June 26-28, convention, Starkville, Mi.; (855) 475-0291; www.forestprod.org. North American Wholesale Lumber Assn. – June 27, regional meeting, Hilton San Diego Gaslamp Quarter, San Diego, Ca.; (312) 321-5133; www.nawla.org. PCBC – June 28-29, San Diego Center, San Diego, Ca.; (800) 9567469; www.pcbc.com. Inland Lumber Producers – July 13, golf outing, Coeur d’Alene Resort, Coeur d’Alene, Id.; www.idfg.com. North American Wholesale Lumber Association – July 17-20, Wood Basics Course, Virginia Tech University, Blacksburg, Va.; (312) 321-5133; www.nawla.org. Tacoma-Olympia Hoo-Hoo Club – July 19, board meeting, Tacoma, Wa.; (253) 531-1834; tbilski614@aol.com.

SOUTHERN CALIFORNIA REGIONAL MEETING

June 27 San Diego

in conjunction with PCBC

Association of Woodworking & Furnishings Suppliers – July 1922, AWFS Woodworking Fair, Las Vegas Convention Center, Las Vegas, Nv.; (800) 946-2937; www.awfsfair.org. West Coast Lumber & Building Material Association – July 20-21, 2nd Growth summer conference, Omni Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca.; www.lumberassociation.org. Product Stewardship Program – July 25-26, Omni Parker House Hotel, Boston, Ma.; (617) 236-8293; suzy@productstewardship.us. Umpqua Valley Lumber Association – Aug. 2-4, mill week, Roseburg, Or.; (541) 874-2281. Tacoma-Olympia Hoo-Hoo Club – Aug. 12, annual picnic, Gig Harbor, Wa.; (253) 531-1834; tbilski614@aol.com. LMC – Aug. 16, hardware express, Boston, Ma.; www.lmc.net. Tacoma-Olympia Hoo-Hoo Club – Aug. 16, board meeting, Tacoma, Wa.; (253) 531-1834; tbilski614@aol.com. National Association of Women in Construction – Aug. 16-19, annual convention, Hyatt Regency, Anaheim, Ca.; (817) 877-5551; www.nawic.org. Ace Hardware Corp. – Aug. 17-19, fall market, Sevierville, Tn.; (630) 990-7662; www.acehardware.com. Southern California Hoo-Hoo Club– Aug. 18-21, ladies weekend, Hilton, Palm Springs, Ca.; (323) 559-1958; www.hoohoo117.org. Western Hardwood Association – Aug. 22-24, annual convention, World Forestry Center, Portland, Or.; www.westernhardwood.com. World Conference of Timber & Engineering – Aug. 22-25, University of Vienna, Wien, Austria; wcte2016@tuwien.ac.at. Orgill – Aug. 24-26, fall dealer market, Indianapolis, In.; (877) 6633186; www.orgill.com. Building-Products.com

Networking with industry leaders, cocktails, a powerful, educational presentation and tickets to a baseball game… all for $99!!!!! 3:00 – Registration, cocktails, networking 4:30 – Industry Panel discussion 5:30 – Networking, cocktails 6:30 – San Diego Padres game All registered attendees are invited to join us in special VIP seats in the Toyota Terrace to watch the San Diego Padres take on the Atlanta Braves! REGISTER BY APRIL 30 AND YOUR PADRES TICKET IS INCLUDED IN YOUR REGISTRATION PRICE!

Learn more andd register at www.nawla.orgg/regionals June 2017

The Merchant Magazine

FLASHBack 60 Years Ago This Month

MILLWORK WHOLESALER T.M. Cobb, of Los Angeles, San Diego, and Marysville, Ca., introduced a new Tyco Products service truck to call on dealers and demonstrate Tyco aluminum casement and patio doors for their customers on the jobsite.

L umber dealers were enjoying healthy sales 60 years ago this month, but it was no time to get complacent, warned the June 1957 issue of BPD’s sister journal, The California Lumber Merchant. Several high-profile projects were underway featuring competing materials. Aluminum Company of America had begun work on 50 “carefree” homes, built predominately of aluminum. Not to be outdone, U.S. Steel Homes, a division of U.S. Steel, was designing an all-steel home. And Monsanto Chemical Co. was hard at work on an all-plastic House of the Future, expected to be open for tours by the end of the year—at Disneyland. In other news: • The San Francisco Hoo-Hoo Club induced 40 couples to attend its annual spring dinner-dance by

raffling off a technological gadget most of them had never seen before: a color TV set. The lucky winner: Bi11 Johnson of Hobbs Wall Lumber Co. The runner-up took home a “beautiful RCA hi-fi.” • A 42-year-old yardhand at Crane Lumber, Corning, Ca., was arrested for running his own brokerage on the side— selling lumber he stole from other yards in Northern California. The man, who had a lengthy rap sheet and formerly resided at San Quentin due to his prior check forgery business, would call other lumberyards, posing as a representative of a builder. He’d convince the yard to release a truckload of lumber to him without a downpayment and then would usually resell it at a sharp discount to a dealer in a neighboring county. The gig was up when the suspicious owner of Woodland Lumber, Woodland, Ca., let the crook have the wood, but then had an employee trail the man to a half-built house he himself was building. The sheriff was notified and got the culprit to confess that he’d bilked yards throughout the region. • A new source of sales opened up for retail dealers starting July 1, 1957, when the Air Force decentralized its procurement of lumber and plywood. Instead of the Air Force Lumber

COMPACT hardwood merchandiser was promoted by Gordon-MacBeath Hardwood Co. on the cover of June 1957’s Merchant.

Stock Control office in St. Louis, Mo., overseeing all buying, the contracting officers at each of the 189 Air Force bases around the country would handle their own purchases. • A new adventure comic strip, “Smokey the Bear,” began appearing in daily and Sunday newspapers starting June 16. Syndicated through a joint arrangement between the Forest Service and Columbia Features, the strip was designed to “extend further the educational value of Smokey in forest conservation.” Royalties from the strip would go to the Forest Service for cooperative forest fire prevention work.

SMOKEY the Bear became the first comic strip character to be authorized by Congress, after being declared the official symbol of forest fire prevention by the Congressional Act of 1952.

The Merchant Magazine

June 2017

Building-Products.com

The

MERCHANT

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Engineered to perform. Designed to protect. TruWood products offer beneﬁts that are hard to match. VERSATILE: The most complete selection of styles, patterns and thicknesses in the industry. RELIABLE: Backed by our 30-year transferable warranty. DURABLE: Won’t check, split or crack, and factory-primed for added protection. SIMPLE: Easy cutting, tooling and nailing. SUSTAINABLE: Manufactured from residual wood ﬁber, using sustainable practices.

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