24 minute read
THINKING AHEAD WITH NAWLA
By Carl Lamb
Leaving the pandemic better than before
WCO ID-19 pandemic blew up, we at Snavely Forest Products knew that sitting passively by in hopes the crisis would work itself out wasn’t a realistic solution. Hope is not a plan!
With that in mind, our company began making decisions and operating from two distinct, but parallel mindsets. First, we looked at the outbreak through the lens of what steps did we need to take immediately to address the circumstances at hand. And, second, we envisioned what kind of company we wanted to be as we emerged on the other side of this calamity.
Over-Communication Early On
We sprang into action at once, assembling a COVID team whose purpose it was to ensure that Snavely—which has locations throughout the U.S.—remained in compliance with local, state, and federal pandemic requirements. ust as importantly, we recognized the need to educate our employees.
Although we quickly reduced o ce occupancy in the branches to 10% or less of staff, as a distribution business our front-line workers also include material handlers and drivers who don’t have the option of working remotely. Product has to get onto the trucks, and the drivers have to deliver to our customers. The workers showcate, to our people. Because of the CDC-recommended procedures and processes implemented, and because of all the internal discussion surrounding those actions, we got to a point very quickly where the fear of the unknown started to die down. And that was good. With a workforce that was reassured of their safety on the job, we were free to focus on business even as we stayed on top of all of the requirements.
ing up every day on site to handle these key tasks are the heroes of our organization, and we owed it to them to make sure they were safer here than anywhere else.
Not only that, we knew it was important to keep them in the loop as to what Snavely was doing to achieve that goal—what protocols were being put into place, and why. Even today, when the world has largely settled into its “new normal,” our COO provides a quarterly update on what’s going on and what’s been done in response. But our overarching goal at the onset of the pandemic was to communicate, even over-communiImproving for the Future
At the same time that one team— consisting of our director of safety,
A Special Series from North American Wholesale Lumber Association
About NAWLA
North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn how NAWLA can help your business at nawla.org.
some executive leadership, materials handlers, and operations managers—worked diligently on safety and compliance, we had another that was dedicated to mapping out Snavely’s exit from the crisis. What do we look like coming out of the pandemic? What do we want to look like coming out of the pandemic? How can we improve?
Technological enhancements surfaced as a huge part of the answer to those questions, as we tried to figure out how to make our sales and marketing team more effective while working remote. One of the most impactful improvements was the adoption of an adaptive phone system. It rings right through users’ computers at home as though they’re sitting at their desk in the o ce. In addition, video chats on Teams and Zoom also made a lot of tasks very easy, allowing us to be face-to-face with our shareholders, customers, and vendors.
As this panel continues its work, Snavely is also exploring how to do more digital marketing, different ways of putting presentations together, electronic PODs, and automated systems. With the progress we’ve already made on the technology front, our remote workers are just as connected and, in my opinion, more productive than ever before.
These changes have been good not only for the employees, but for the company as well. While our existing employees are thriving in the work-from-home culture, Snavely is finding that technology facilitates onboarding and training without a need to be in the o ce. Labor continues to be a challenge for this industry, and qualified candidates are in demand everywhere, so being able to say that a candidate’s physical location may not matter so much is an enviable position to be in. You don’t have to have somebody commuting an hour or 45 minutes each way if the job doesn’t demand it.
In addition to the gains derived through technological innovations, our company is also getting feedback directly from customers on how to improve. Instead of a general, routine check-in to see if everything’s okay, we’re asking questions like: • What’s the most important thing customers need from us right now?
• How can we help during these uncertain times? What do they expect us to do differently today than we normally do or that we’re doing right now? • What challenges do they expect to face during the recovery period and how do we help them there?
The Other Side of the Pandemic
If you had told me a year ago that my work day would come to look like this 50% videoconferencing, for example—I would’ve said, “No way.” But that’s what it’s transformed to. If you had told me that not only are we going to be hit with this pandemic, but we’re going to move our employees to working from home and take our sales force off the road but that business is going to better than it was before—I never would’ve believed that, either. But that’s a fact, too.
The pandemic forced a lot of changes; but at the end of the day, our business is still a relationship business— although how we manage those relationships may look a little different. Still, it doesn’t matter which portion of building materials we’re talking about, if you’ve done a good job with your vendors in treating them as partners and talking openly and honestly, you get through the challenges (like the current shortage of supply). It may not always be easy, but you’re going to make it work.
That’s why NAWLA and similar organizations are so important. As the world begins to open back up, an in-person Traders Market is a strong possibility this year; and if it happens, it’ll represent a prime opportunity to cultivate some of those all-important relationships. There’s a major pent-up demand to get back to seeing people in person, even as we’ve managed to make everything work in the interim.
With video conferencing, it’s true that you can walk away with some sense of a personal connection. You can see and read the body language of the person on the other side of the screen, so you get “some of it.” But being in person, you get “all of it.” There’s no substitute for that.
– Carl Lamb is a shareholder and vice president of Eastern Operations for Snavely Forest Products, Pittsburgh, Pa. Learn more at snavelyforestproducts.com.
•Gazebos – providing more shelter than a pergola, gazebos offer a point said. Every now and then a little rumor pops up that auto scanners are taking the place of good people, and that’s just MOVERS & Shakers Lakes, this number is expected to grow a bit over the next few years. Bobby Chamberlain has joined Do it Best Corp., Fort Wayne, In., as of retreat and greater protection from the elements without isolating inhabitants. •Exposed Timber structures – the natural color and grain of redwood timbers lend a solid support to a greater structural design. not the case. Coulombe agrees When we started this journey, we knew it would be a big change for our folks; our graders are some of our best employees, valued and important pieces of our organization, and we didn’t want to lose any of them. In our case, we took former line graders and put them in roles like scanner technician to keep their expertise close at hand. The technology isn’t for everyone, he concluded. For smaller mills, the ROI won’t ever be there and they will continue to be successful. For our larger ones, this may be something more of them may consider in the years to come. The technology will continue to improve, and we expect to see more industry peers getting on board, said Coulombe. Is it worth it for Irving Forest Products Jeff Stoddard, former Northwest Hardwoods VP, has been named chief operating officer of Collins Cos., Portland, Or. Jason Stanley is now operations mgr. of the ane Hardwood division in ane, Pa. Ken Caylor has retired as plywood David Watson is new to contractor sales at Mead Clark Lumber Co., Santa Rosa, Ca. Chad Summers has been promoted to president of ewett-Cameron, orth Plains, Or. He succeeds Charlie Hopewell, who will stay on as an LBM business development mgr. Also new are merchandise coordinator Elyssa Pozorski and consumer marketing specialists Megan Millsap and Wes Schooley. Recently promoted: Michael McCoy, global sourcing merchandise mgr.; Ryan Robie, INCREASINGLY backyard builders are realizing that the best contemporary design materials aren’t grown in the lab, but out in unfiltered nature. •Decks – a redwood deck can last a lifetime when it’s built and maintained well. •Planters – non-toxic and all natural, redwood is ideal for garden boxes and planters to hold flowering plants, herbs, even vegetable gardens. •Furniture – any form of seating, tables, benches all deliver the promise of a comfortable place to gather when built with redwood. •Arbors – create memorable transitions from one part of a yard to the next with redwood arbors. Among the trends emerging in landscaping design, there’s no better fit for bringing beauty, color and presence into an outdoor space than redwood. Combined with its longevity, and environmental qualities, redwood is the top choice among landscaping trends. It is a choice any consumer can make with confidence, and reaffirm their wise decision year after year. –Jessica Hewitt is director of marketing at Humboldt Redwood Company. HRC is working to cultivate a lasting legacy of environmentally responsible forestry and sourcing, manufacturing, and distribution of top-quality redwood lumber products. Challenges Along the Way As is often the case with technology, there were challenges as the new tools were implemented at Irving Forest Products. Initial technology had issues with identifying decay due to its color, among other things. The installation process required lots of checking by people lots of man hours to get it started and up and running accurately. Constant checks were the name of the game for a while, but Coulombe says those issues are in the past. The key to success with new technology is to assign someone to take ownership of the program or equipment and really usher it through the quality control checks, the calls with the manufacturer, etc., Coulombe commented. Precise technology at this level will never be set-it-andforget-it; just when you think you’ve hit that sweet spot, a fleck of dirt on the lens shows up as a defect. It’s a constant process, but worth the effort. To Each His Own By Easterling’s estimates, maybe 10% of ELMA mills use auto grading equipment. With the technology still fairly new to the lumber industry in the ortheast and Great Without a doubt. The benefits far outweigh the challenges, and the equipment we’ve chosen is helping us to better serve our customers’ ever-changing needs, and that’s what it’s really all about. S I rowing Certification of amily ands The Sustainable Forestry Initiative and the American Forest Foundation have formed a new partnership to grow the amount of certified family and other small holdings in orth America. nder their new Small Lands Group Certification Module, companies certified to the SFI Fiber Sourcing Standard will be able to form a new type of certification group to certify small lands within their wood and fiber supply area. The Module will be submitted to the Programme for the Endorsement of Forest Certification (PEFC) for approval this spring. pon approval, fiber produced from lands certified under the program will be certified for both PEFC and SFI labels and chain-of-custody systems. sales mgr. for South Coast Lumber Co. & Affiliates/Pacific Wood Laminates, Brookings, Or. Rob Rowe succeeds him after 20 years in sales with PWL. Tom Johnston, ex-Builders FirstSource, is now Opti-Frame mgr. for Parr Lumber, Seattle, Wa. Ethan Anderson, OrePac Building Products, has transferred from Belgrade, Mt., to become branch support mgr. in Wilsonville, Or. Fritz Selzer is new to sales and project management for Associated Building Supply, Oxnard, Ca. He is based in Arroyo Grande, Ca. Sharon Mason is the new sales mgr. for SDS Lumber, Bingen, Wa., taking over for John Spaulding, who retired April 29. chairman of the board. Tim Callahan was named chairman of Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia, Pa. Paul Ryan has been promoted to president and CEO of LMC, Wayne, Pa. He succeeds John Somerville, who is retiring this month after 11 years with LMC. Paul Conley, ex-El & El Wood Products, joined DW Distribution, as VP of door fabrication. Rick Lierz, president & CEO, Franklin Building Supply, Boise, Id., was honored with the National Lumber & Building Material Dealers Association’s Chairman’s Award. LMC’s John Somerville received NLBMDA’s Lifetime Distinguished Service Award. rental program mgr.; Carolyn Rorick, LBM operations specialist; and Lauren Wilson, safety & general merchandise mgr. Lorna D. Christie has resigned after five years as CEO of the ational Hardwood Lumber Association. The NHLA executive committee is working on a transition plan. Robert Fouquet, ex-Ainsworth/ Norbord, and Ernesto Wagner joined Forest Economic Advisors as partners. Fouquet, based in Vancouver, B.C., will cover engineered wood products; Wagner will cover South America. Helena Handbasket has been named financial advisor to Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.
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Tucker, Ga.-based interior building products distributor GMS Inc. has agreed to purchase the assets of 10-unit distributor Westside Building Material, Anaheim, Ca., for 135 million in cash.
Founded in 1935, Westside is a leading supplier of steel framing, wallboard, acoustical ceilings, insulation and related building products serving commercial and residential markets throughout the Southwest. The chain operates nine distribution centers in California (Anaheim, Hesperia, Oakland, Chatsworth, Fresno, Lancaster, Santa Maria, San Diego, and National City) and one in Las Vegas, Nv.
In 2020, Westside generated net revenues of approximately 200 million. ohn C. Turner, president and chief executive o cer of GMS, said, The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organizations with shared cultures and entrepreneurial values. Westside’s differentiated platform provides a unique opportunity for GMS to expand our reach and capture significant growth opportunities in strategically important West Coast markets.”
Westside’s current management team, including president Dick Peckham and CEO Bill Peckham, will continue to lead the business under the Westside brand.
Westside will also partner with seven existing GMS locations across California which operate under the B Materials, Hathaway Building Materials, and Charles G. Hardy banners.
The deal is expected to close early in the third quarter, subject to customary closing conditions.
Celebrating the 50th anniversary of its founding in 1971, GMS operates more than 265 distribution centers across the .S. and Canada, offering wallboard, suspended ceilings systems, ceilings, and related construction products.
Green Bay Rebrands as DuxxBak Composite Decking
Seeking to capitalize on the water-shedding namesake of its patented compound, Green Bay Decking, Green Bay, Wi., has rebranded as DuxxBak Composite Decking.
Several of its decking lines have also been rebranded in an effort to bring a more streamlined, quality-centered theme.
GREEN BAY DECKING is renaming the company after its signature, water-shedding product.
The composite decking’s base compound, from which all its decking products are manufactured, consists of virgin high density polyethylene (HDPE), rice hulls, and Biodac—a proprietary element that acts to scientifically strengthen the compound.
It comes in four distinct profiles DuxxBak Dekk; Optima Dekk and Optima Dekk LT; I.Dekk and I.Dekk HD; and Commercial Dekk.
The DuxxBak name was introduced in 201 to describe the products’ water-shedding attributes (like water off a duck’s back).
NORTH IDAHO POST AND POLE
We are the manufacturer of Round Wood
• Lathed house logs manufactured on site from 8” up to 24”x32’ (depending on length) • Treated or Untreated is available | Smooth finish or Hand peel available • Doweled Rail Fencing, two, three and four rail | 8’ or 10’ Doweled End Rails • Handrail – Custom Manufactured to our customers specs-Post Caps • Doweled Post and Rails in many sizes treated or untreated • Jump Rails in 3 ½” and 4” – lengths of 10’ and 12’
North American softwood sawmill capacity increased by 1.4 billion bd. ft. in the last year, according to Forisk. Most of that increased capacity—1.1. billion bd. ft.—was from manufacturing in the U.S. South. In fact, the entire wood products manufacturing sector continues to produce at the highest levels since the Great Recession, according to the Federal Reserve Board.
Many wood products companies have announced signifi cant investments to expand the capacity of existing mills, however, lead times to get the new equipment remains long. In some cases, machinery is backordered up to 24 months—potentially extending the usual 12 to 24 months it would take to complete these types of projects. Manufacturing expansion projects are a long-term solution that will support increased capacity, but not until 2022 at best. Home demand has only increased during the pandemic and builder confi dence has been above 0 for the last nine months, with a rating of above 50 indicating positive conditions.
Homes are going under contract at a faster rate than they are listed for sale even though new home listings are up 19.1% over last year. Permits for single- and multifamily projects were up 25.3% and 20. %, respectively. NAHB reported that the pandemic also drove increased demand for remodeling projects.
Despite the already high levels of production, and investments from manufacturers to upgrade and expand mill capacity, the unprecedented demand still exceeds the current supply. The most immediate opportunity to address constraints to lumber supply is to focus on transportation and workforce limitations. These challenges were present before the pandemic and have exacerbated the current situation.
The wood products industry is far from the only commodity that is experiencing increased demand, nor is it the only industry to face worker shortages and transportation limitations. Addressing these constraints will be the most fruitful endeavor for immediate relief.
RoyOMartin is adding a new production line for Eclipse OSB Radiant Barrier at its Corrigan, Tx., facility.
“As always, RoyOMartin strives to be on the cutting edge, increasing production to meet the growing demand of our products,” said Bobby Byrd, director of sales. “We recognize homebuilders value our Eclipse product, and we are working around the clock to meet the increased demand driven by building code changes and increasing housing starts in markets that utilize radiant barrier roof decks.”
In the next few months, the completed production line will double the output of Eclipse OSB Radiant Barrier when running at full capacity. The new line is manufactured by Globe Machine Manufacturing Co. and equipped with a Black Brothers laminating station.
“Eclipse has been an important value-added product for RoyOMartin since it was fi rst introduced in 2003 at our Lemoyen mill,” noted executive VP Terry Secrest. “We have grown our capabilities over the past 18 years with e ciency improvements on the original machine, but in 2019 we realized the market was outgrowing our ability to produce enough radiant barrier. Our new Corrigan facility was the perfect location to add production capacity.”
REDWOOD
Composite can’t compare.
Like the foods we buy, when it comes to decking, we want natural and real. Redwood is always available in abundance of options. So stock the shelves! Unlike mass-produced and inferior products, Redwood is strong, reliable and possesses many qualities not found in artificial products. They maintain temperatures that are comfortable in all climates.
Redwood Empire stocks several grades and sizing options of Redwood.
The U.S. Department of Commerce issued its preliminary determination in the second administrative review of softwood lumber imports from Canada, proposing that tariff rates be more than doubled for most firms (categorized as “all others”).
The Commerce Department advised that the current .99% combined anti-subsidy and anti-dumping duty rate be increased to 1 .32% by the end of the year. Previously, the rate had been set at 20% in 201 , before being lowered to its current level late last year.
The U.S. Lumber Coalition applauded the announcement. “A level playing field is a critical element for continued investment and growth for U.S. lumber manufacturing to meet strong building demand to build more American homes, said ason Brochu, Coalition co-chair and co-president of Pleasant River Lumber Co. “The U.S. Lumber Coalition applauds the Commerce Department’s continued commitment to strongly enforce the U.S. trade laws against subsidized and unfairly traded Canadian lumber imports.”
National Lumber & Building Material Dealers Association and the National Association of Home Builders, however, criticized the plan. LBMDA president onathan Paine called the duty “a tax on American consumers” that will further aggravate the shortage of affordable housing. Paine vowed NLBMDA would lobby “to reverse this decision by the Department of Commerce and will continue to fight for the renewal of a Softwood Lumber Agreement with Canada.”
Weyerhaeuser Selling Timberlands to Hampton
Weyerhaeuser Co., Seattle, Wa., has agreed to sell 1 5,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources, Portland, Or., for $266 million.
Expected to close in the third quarter, the sale is largely comprised of high-elevation terrain in the North Cascades range, with approximately 25% of the acres located in Chelan County on the east side of the mountains. Weyerhaeuser acquired the property through the acquisition of Longview Timber in 2013. The forestland tract primarily supplies Hampton’s nearby lumber mill in Darrington, Wa., and does not supply Weyerhaeuser’s internal mills or strategic export customers. The property also has the highest operating costs and lowest site productivity and Douglas-fir mix in the company’s western portfolio.
Concurrent with the announcement, Weyerhaeuser said it completed its acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately 1 9 million.
“These transactions exemplify our ongoing effort to strategically optimize and upgrade our timberland portfolio,” said Devin W. Stockfish, president and CEO of Weyerhaeuser. “Our Alabama acquisition will grow our near-term and long-term cash flow, and the Washington sale completes our targeted largescale divestitures of non-strategic acreage in the West.”
Weyerhaeuser owns or manages nearly 1.3 million acres and also operates two mills, two nurseries, and several other sites in Washington.
At Royal Paci c you’ll pay no more, but get extra. We guarantee it.
Hi-bor® 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*.
FirePro® brand re retardant treated wood is treated with a patented formulation that contains no phosphates and has been shown to exhibit exceptional re performance properties without compromising other critical engineering properties such as strength, durability, corrosivity, and hygroscopicity. FirePro treated wood is also backed by a 50 year limited warranty*.
Advance Guard® 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- oors. Advance Guard borate pressure treated lumber is also backed by a lifetime limited warranty*.
Providing Customer Satisfaction in All We Do
P.O. Box 75 • McMinnville, OR 97128 503-434-5450 • FAX: 888-TSO-WOOD (888-876-9663) 28770 Dike Road • Rainier OR 97048 503-556-1297 • Fax: 503-556-1709
* See product warranty for details. Hi-bor®, FirePro® and Advance Guard® treated wood products are produced by independently owned and operated wood treating facilities. Hi-bor®, FirePro® and Advance Guard® are registered trademarks of Koppers, Inc. ©10/2014 LONG-IDLED MILL in Fresno County, Ca., shown here humming along in 1952 under Mathews Lumber Co., could soon return to life.
Rush to Dust Off Ancient Sawmill
Fourteen years after purchasing 70 acres of forestland in Fresno County with a long defunct sawmill on site, a 63-yearold plumber has decided to change careers and resume milling on the property.
The Auberry, Ca., mill has sat lifeless since Sequoia Forest Industries shut it down in 199 and liquidated its equipment. irk Ringgold purchased the property in 2007, figuring he would one day convert it into a mini storage facility.
But the 2020 Creek Fire which ripped through the area destroyed 3 0,000 acres of Sierra ational Forest and hundreds of homes—changed his plans. Realizing that there was limited time left to log and mill the thousands of charred trees, he decided to revive the old mill. He’s currently operating a portable saw, but this year has begun purchasing surplus sawmill equipment to revive the full operation with multiple, permanent manufacturing lines. He has also started building up his inventory, as stacks of hundreds of charred pine and cedar logs await their fate.
He has hired industry veteran Walt Schrader to help track down the necessary equipment and get it set up.
Last month, Ringgold received a 250,000 grant from the U.S. Forest Service to complete the installation and help train workers. Among the 44 corporations, associations, universities and research centers awarded this year’s annual Wood Innovations grant, he is the only one-man show.
Ringgold anticipates selling finished products to various markets, such as plywood, trim and siding. He is also acquiring a pole peeler to manufacture telephone poles. He deemed the site’s idled cogeneration plant too expensive to operate.
Challenges remain. The mill will require a minimum of four to 10 truckloads of logs per day to stay profitable. And in March, several environmentalist groups sued the Forest Service and the U.S. Fish & Wildlife Service to prevent logging in the area due to the presence of the Pacific fisher, a small weasel-like mammal added last year to the Endangered Species List.
Built in the early 1950s, the Auberry sawmill has gone through a number of owners including Mathews Lumber Co., ings River Pine Industries, Wickes Forest Industries, and for its final 10 years of operation Sequoia Forest Industries. For decades, it had been the center of the tiny sawmill town—and now may one day be again.
“I’m going to give it everything I’ve got,” Ringgold told the Fresno Bee. “And really, I’ve burned the ships in the harbor. I have no backup plan. There’s nothing but straight ahead hard, and that’s all that I have.”
