The Merchant August 2023

The latest additions to our high-performance fasteners.

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Deck-Drive DCU COMPOSITE Screw Fascia Screw

NEW Wafer-Head Construction Screw

Trim

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Volume 102 • Number 8

PRIORITIES OF SUMMER

------------ BY PATRICK ADAMS

TRADITIONALLY, “SUMMER” doesn’t change much for me. I prefer the cold over the heat, so there’s that. Where we live, there is a lot less traffic (for some reason that nobody can explain), so that’s a bonus. Other than that, it’s business as usual. Go to work, handle the “honey do” lists, and go through my somewhat habitual OCD routine.

I’m grateful to have many people in my life that I respect and who, whether they realize it or not, I listen to. Many are part of this great industry. Of the countless bits of wisdom they have shared that have positively influenced my life, the almost constant is “Spend as much time with your kids as you can because they’ll be grown before you know it.”

Of course, I see this (and so have each of you in the monthly pics) as it seems just yesterday, my “little girl” was actually little. But almost in a flash, they aren’t so little anymore. I’m proud of the people they are, and are becoming. While they do drive Mom crazy at times (especially over summer), they are good kids with good hearts and far too advanced senses of humor. I cannot say enough how proud I am of them, and how surprising it is that these good kids are mine (probably more to do with their mother, but I’ll take a small bit of lucky credit).

So this summer, I decided to follow those wise friends’ advice. Starting even before summer officially began, we’ve had a summer packed with family adventures. I’m trying to balance a bit of remote work, while packing my office days full when I’m there to keep everything moving forward. While I feel ashamed of reporting to my team that I’m off to another family adventure, they all smile knowingly and sincerely say, “Have fun and don’t worry about a thing.” Needless to say, I am blessed in so many ways that I can’t begin to count.

We’ve been camping a couple times, with a couple more planned before school starts. We’ve been fishing a few times (with no record catches to report), been hiking and to the beach (with the sunburn to prove it) and just got back from a “work event” in Coeur d’Alene where I decided

to bring them along. We rented a boat and the kids went tubing behind (more like dragged by a rope), along with a few other adventures. My son finally conquered how to ride a bike without the safety of his training wheels, and I was there to see it. He now rides non-stop… just like his Dad did as a kid.

When we’re at home, I can see them growing up before my eyes as we pass through our daily routines. But, when we’re “out” and I see them being kids—laughing, playing and being the goof balls that they are—time stands still, and they don’t seem so big anymore. It’s a reminder of how precious this time is, and how much I too have grown because of them. I think I’m more patient now; I think more and react less. I think more, not about what could be, but what is and what used to be. I worry less, not because I’m less aware of what could happen, but because I no longer let it rob me of the joy of these moments in front of me now.

We all talk about “priorities,” but I rarely see actions that reflect those spoken priorities and instead, see behavior that would have you believe that everything is a priority. This summer, I made my family a priority because I’ve learned to trust those around me. When they say not to miss these times, to make my family a priority and to delegate and trust my amazing team, I decided for once to listen. Because of this, we’ve made memories that will last a lifetime and perhaps, delayed them growing up even if it’s just for a moment.

I hope everyone has taken some time this summer to make something important a priority, and to make memories that will last a lot longer than what we usually prioritize. As we are constantly reminded, there are no promises of tomorrow and we must take a moment to cherish what is in front of us today. Have a wonderful summer and as always, I am so grateful for each of you and for serving this great industry of ours.

PATRICK S. ADAMS, Publisher/President padams@526mediagroup.com

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SOURCING THE BEST SPECIES FOR MILLWORK

------------ BY TYLER SHARPE

CHANGE FOR LESS-expensive, more-resilient, and better-performing products has always driven the building industry. Millwork is no different as we strive to embrace enhanced products, equipment, software, substrates and coatings to deliver improved offerings. In this article, we dive into the history and evolution of how certain species became the prevalent, reliable “go-to” substrates for the millwork industry.

Keeping up with fast paces of change has transformed me into a unique combination of an early adopter and a skeptic. I’m often the first in my circle to try new process improvement apps or explore revolutionary AI plugins. However, I’m also wary of the product’s ability to add value (or even function properly) until I’ve seen them in action in my daily life.

This critical step is often overlooked, since most products work well in controlled environments. Marketing of these products can be positioned where the benefits are staged so effortlessly, it feels unnecessary to consider the downside. For technology, a worst-case scenario could be a security breach or loss of data, so I design situations to test, experience and understand the functionality of these programs before integrating them into my day to day.

As a director of supply for a millwork company, I adopt the same approach to understand products from the inside out, starting with the species and substrate. As a foundation, I recognize that all species have different properties and characteristics. We often can’t match a perfect species for each application, but we can rule out a family of species that are simply not an ideal fit for certain millwork uses. Understanding the technical specifications of the species and requirements of the application enables us to determine that the best species for a stair

HOW THE GO-TO WOODS FOUND THEIR NICHES

stringer may not be suitable for a flat jamb or moulding.

In speaking with colleagues and industry veterans, the trend to experiment with new species started in the ’80s as environmental changes in the United States limited access to the two most prevalent species used for millwork, ponderosa and sugar pine. Ponderosa forest supply was affected by environmental provisions to protect the endangered spotted owl which primarily resides in ponderosa pine forests. Increased logging threatened the spotted owls’ natural habitat resulting in greater protection for old-growth forests. Simultaneously, sugar pine forests were devastated by a fungal disease known as blister rust which spread throughout the forests causing infections, reduced growth rates, loss of vigor, and a sharp decline in available supply.

North American businesses turned to South America for supply due to its abundance of radiata, taeda, Elliotis and Mexican pines. This shift to incorporate imported species initiated industry-wide practices (often developed through a series of trial and error), essentially marrying up certain fibre to specific applications. An example of an early error was substituting ponderosa pine with Mexican pine in edge-glued panels. With many shared features between the species, it was expected to be a well-suited alternative but the Mexican species was considerably less stable and the wider laminations resulted in a warped panel. The solution was to reduce the average lamination width from about 4” down to 1.5” to limit the effect of the less stable wider grain. The net outcome was a higher cost alternative with lower yields, extra labor to assemble and considerable replacement costs for the learning “errors.”

In 2023, we have now accumulated a half century of experience working with species like radiata and taeda pine. The strong reliability of these species for most

millwork applications was subsequently leveraged by exporting them in break-bulk to major producers in Asia to transform into lower cost, high quality finished millwork goods. With 50 years of expertise, the industry understands the ins and outs of these species allowing us to predict how they will likely react in a series of applications. Knowing their overall stability, weatherability, screw-holding strength, MoE and MoR among other properties, allows us to compare against applications to determine if these species are suitable.

That’s why sourcing best practices begin with understanding the application and the fundamental needs of the product for successful outcomes. For example, can a 1” screw be a suitable alternative for a 3” screw? While it may not provide the same strength, it could meet the requirements of the intended use. Similarly, the suitability of a species for millwork products depends on the application, construction and expectations of the substrate.

As COVID sparked increased demand, the millwork industry was motivated to investigate different import species similar to what happened in the 1980s. To seek out more supply, we began experimenting with a variety of new import species and substrates. Import data shows tremendous amounts of sibirica pine coming from Northern Europe and local Asian species like Chinese fir, merkussi pine, falcatta, albasia, rubberwood, mahogany, meranti and led to an increased embrace of other engineered alternatives like MDF and LVL (laminated veneer lumber). The choice was service the business with a new substrate or potentially lose out.

I watched our QC teams design extensive destructive testing to better understand the specifications and limitations of each species. Other tests were designed to recreate the conditions of weathering in hot, cold, humid and dry conditions for alternative suitable species. Circling back to my comment on technology, testing in a controlled environment is not a substitute for years of field data that documents the performance and variability over time and in different climates. In laboratory tests it is difficult to capture variations in the substrates from production across different seasons or fibre at different levels of maturity.

I can report positively that our experiences with species like Chinese fir, merkussi pine, and rubberwood were well received and continue to hold up exceptionally well in a wide range of applications. Alternatively, some species responded better in control testing than in the field, one problem species in particular being sibirica pine. This species grows in a cold, dry climate and when imported to the southeast states resulted in checking across the ends of the boards and raised grain on the surface. Further diagnosis led us to understand that the medullary rays of the Siberica contributed to the splits that opened up within the boards.

In the post-COVID era, supply of known millwork species is more accessible and market pricing is trending towards pre-pandemic levels, largely driven by reduced freight costs. However, there are still largerthan-expected volumes of imported Southeast Asian species especially in LVL products entering the U.S. (my assumption is due to their lower price points). LVL is a dimensional panel product with layers of veneer

bonded together by glue and can be made from veneers from a wide range of species. Logs for many of these new species are less expensive than pines, plus LVL production gives a better yield on fiber than sawmilling. Some of these species have low densities, enabling shippers to fit more material in a container. Due to their rapid introduction, I question whether these species have been sufficiently tested across multiple weathering cycles for the intended climates and finished applications. Have the logs been harvested legally? Do glues meet emission targets? Does the factory responsibly follow SOPs and lamination best practices? As director of supply, I need to assess the complete supply chain and life-cycle costs:

• What is the cost of movements such as crook or bow in critical components?

• What is the cost of potential screwholding failure?

• Does the product smell funny? Will it grow mold?

• What’s the cost of a delamination and product failure?

• What could be the cost to reputation?

These are the sort of scenarios my team considers when we evaluate new species.

Understanding the product application and the requirements of the substrate and coatings is always the first step. From a strategic sourcing perspective, the specifications of the application are the driver to identify suitable substrates and total cost of ownership is the overall metric. My overall message is to convey the importance of due diligence and ask the right questions in order to make an informed decision. I take pride in being an early adopter, but not at the risk of being the test case. MM

TYLER SHARPE

Tyler Sharpe is director of supply at Weston Wood Solutions (www.westonwoodsolutions.com), a global distributor of valueadded wood and specialty building products for industrial and commercial markets.

QUALITY CONTROL teams at Weston Wood Solutions design extensive destructive testing to better understand the specifications and limitations of each species. (Images courtesy Weston Wood Solutions)

RAINSCREEN CLADDING

ALTERNATIVE MATERIALS DRIVE RISING DEMAND

------------ BY DAVID KOENIG

THE TRENDY LOOK of rainscreen cladding that swept over commercial buildings is fast spreading to residential construction—and who’s taking notice but the manufacturers of alternative decking. The producers of composite, PVC and thermally modified wood decking

Design Trends Driving Cladding Demand

• Open joint systems showcase dark spaces between boards, bringing the addition of texture and depth to walls and creating intrigue through strong linear patterns.

• Mixed materials continue to be a popular contemporary trend.

• Wood-look boards bring warmth and patterned texture that balance other colder materials like stone, marble, concrete or smooth panels.

• The wood look can reflect a building’s natural surroundings.

• Homebuyers (especially millennial homebuyers) want homes that stand out and aren’t “cookie cutter.” They want homes that don’t look like they are from their parents’ generation.

recognize that their materials offer the same aesthetics, performance and maintenance advantages that builders, designers and homeowners are looking for in cladding.

“Cladding is a design trend that has been growing in popularity over the past few years,” confirms Doug Lind, market development manager for Trex Co. “Inspired by commercial buildings, this application has quickly crossed over into the residential arena with the growth in consumer demand for modern, streamlined design and the warm look of wood.”

Daniel Gibbons, director of exteriors marketing, AZEK Exteriors, thinks there’s even more at play. “Like many buildings material and architectural design trends, it is the combination of new technologies and shifting appetites for design. Very much a ‘chicken-or-the-egg’ scenario,” he says. “On top of this, the driving force in exterior design continues to shift away from just building for the sake of building, but instead having more of a sustainable or green perspective of building with purpose. Design builders and architects are saying, ‘If I were to build something, I want to make sure it is meant to last, and last with minimal need for maintenance.’ To meet this, building material innovation and associated practices need to allow for that improved durability.”

RAINSCREEN cladding, such as NewTechWood’s UltraShiled capped wood-plastic composite, is expandingfrom commercial to residential.

NewTechWood manufactures separate composite decking and cladding systems to provide added protection to the home. According to NewTech’s Richard Lam, “With traditional decking when you put it up on the wall and use it as cladding you are creating what is known as an open rainscreen system. You will be leaving yourself 1/8” to 1/4” gap between each board. You will have water getting between the cracks and hitting your wall and your housewrap. Our cladding/siding system creates a closed rainscreen system where there are near zero gaps in the board with the clip, giving you an almost waterproof barrier to your house.”

NewTechWood offers three distinct styles: the All Weather System (a traditional flat-panel siding), the European System (with raised notches for a modern look), and the Shadowline System (with a 1/4” false gap). Additional styles are coming soon.

Two years ago, Fiberon became the first decking-centric manufacturer to introduce a dedicated cladding product (dubbed Wildwood in 2022). According to Jim Strange, senior category manager, “Wildwood was engineered specifically for cladding applications. We worked with architects to create a thinner, lighter board with a 6” profile, allowing for easier installation and a better yield on the wall. Most deck boards have a Class C rating; Wildwood cladding boards feature enhanced resistance to flame spread and have a Class B rating.”

Other manufacturers have followed suit, introducing branded cladding products. Most, however, are the same boards as their decking, since they say their products’ waterresistive properties are ideal for both applications.

MoistureShield’s Vision and Meridian products both meet cladding requirements under ICC-ES AC524, which is an additional requirement beyond the deck code compliance criteria. According to Barrette Outdoor Living, the same features that make MoistureShield decking a great deck product also make it an excellent choice for cladding since both sides of the board can get wet— its proprietary Solid Core Difference creates an impermeable barrier that can be installed on the ground, in

the ground, and underwater. The backsides of some competing boards are vulnerable to water when exposed over time.

“Over the past few years, decking manufacturers have put significant research and development into making more realistic and aesthetically appealing capped technologies,” says Matt Bruce, vice president of sales at Barrette Outdoor Living. “With rainscreen barrier technology evolving at an equal pace with the architectural preference for horizontal design, products like MoistureShield’s Vision and Meridian composite decking—that specifically warranty against the elements and water damage—make an ideal choice for cladding applications.”

Trex Cladding is made from Trex Transcend square edge deck boards— the company’s top-of-the-line product and are tested to withstand extreme weather conditions, including hurricane-force winds, making them ideal for cladding applications.

Envision Building Products markets a single product as dual-use by design. “Our full-profile, square-edge capped composite decking is code approved for cladding/rainscreen applications. This is beneficial to both our distributor and dealer customers as well as the end-user,” director of marketing Chase Moritz says. “By utilizing our deck boards for cladding, we cut down on the number of SKUs our distributors and dealers need to carry, simplifying their product management with a single product that has dual use capabilities.

“The end-user, whether a professional contractor or a DIYer, gets an easy-to-install, durable and low maintenance product that can be used in several applications on their project. This gives them an option to tie the entire outdoor space together using the same product and color for cladding, decking, and accent areas. We publish separate cladding installation guides to ensure the installer knows the correct installation method.”

Likewise, Russell Lowe, associate director, decking & cladding for Fortress, says their Apex capped bamboo-PVC composite decking works well as rainscreen cladding, because the boards “can defend against water infiltration and support improved ventilation while delivering the high-end aesthetic customers want.”

AZEK TimberTech Cladding also uses the same boards the company sells for decking, so it requires that the understructure is weatherproof since the product is not designed to keep moisture out.

It’s not just composite and PVC decking companies that are banking on cladding. Thermally modified wood producers are all in—and see themselves with a distinct advantage.

“We do see increasing interest in thermally modified wood for cladding,” notes Matt Pryor, director of specialty sales, Bingaman & Son Lumber, supplier of the Americana brand. “We believe the main drivers are appearance, performance and environmental impact. Most competing products try to simulate

OPEN-JOIST cladding can be produced using composite deck boards. (Shown: Envision Rustic Walnut)

wood, while thermally modified wood delivers the authentic experience. There is no manmade element, no chemicals or plastics, no repeating machine patterns. Every board is as unique as the sustainably-harvested tree it came from, a feature that really shines through on a highlyvisible application like cladding.

“The wood’s color can be preserved or enhanced through Shou Sugi Ban, semi-transparent stains, and fully painted options, but we find one of the most popular (and absolute lowest-maintenance) options is natural weathering... just let the wood do its thing.”

Ben Roberts, marketing director for Kebony North America, says the trend has been years in the making. “The demand for rainscreen cladding has been on the rise for some time now,” he said. “As architects/designers/builders started to embrace this as a better building practice, improvements started being made in offerings. The initial concepts of using wood or other types of furring strips to gain the airspace between the substrate and the cladding creates a chimney effect. The furring strips do not allow for a passive airflow between the two which can create condensation pockets.”

These rainscreen clips hold the board from the edge with different types of profiles that accept the clip— forcing designers to search for very long-term but stable wood options to go in them. This created an opening for thermally modified wood because of its high stability.

Roberts says modified wood checked all the boxes. The one shortcoming Kebony identified with higher-end woods was their comparatively slower speed of installation. So, the company recently introduced a Click-In Cladding System that utilizes Grad Concepts’ mini-rail system as the hidden fasteners.

Roberts says another reason for modified woods’ growing popularity as cladding is its increased availability. “As modified woods continue to gain market share across the U.S. and Canada in both decking and cladding, this has made them more available,” he said. “High-end wood cladding is traditionally a special order-type item. Now, traditional building material distributors can supply the marketplace with true ‘off-the-shelf’ offerings instead of the dreaded special order that can be problematic for a builder.”

Thermal modification produces such stable, durable material that MOSO warrants its rainscreen siding

for 25 years.

UFP Industries has enjoyed immediate traction with its UFP-Edge thermally modified wood cladding. “Thermally modified wood siding has gained acceptance, and we have seen significant momentum in the last two years,” says marketing manager Chris Fox. “I see an uptrend for real wood and faux wood siding. Wood colors and textures are important to achieve an on-trend aesthetic. There are also more pre-finished siding options, which come with key benefits like a better and more consistent finish and reduced project delays due to bad weather.”

Thermory USA’s Matt Stansel attributes thermally modified wood’s rising popularity to its rot resistance, long-term performance, sustainable footprint, and minimal maintenance. “We predict that thermally modified wood will continue to grow in the wood market as more consumers become aware of all the benefits and the lasting impact it has on the environment,” Stansel says. “A big part of capturing customers (architects, general contractors, homeowners, etc.) is education, and we will continue to push on that front.”

And dealers can expect their customers to continue siding with PVC, composites and modified wood. MM

UFP-EDGE thermally modified wood cladding comes in a variety of on-trend prestained colors. (Photos by UFP Industries)

CHOOSING THE RIGHT WALL SYSTEM

------------

BY ROB YOUNG

HOUSEWRAP OR drainable housewrap? Rainscreen or no rainscreen? Specifying a wall system that will protect the home from moisture and air infiltration means navigating a lot of options. So which system is best for your customers? The short answer—it depends.

A number of factors play a role in determining the ideal products and systems. As a dealer, you can support builders and remodelers by understanding what they should consider when specifying a high-performance wall system. A project’s budget certainly is part of it, but investing in the most suitable wall system, even if it costs a little more up front, is crucial for the longevity and performance of the home.

Decisions ultimately come down to each individual project, its materials, and its climate.

First and foremost, it’s important to understand the building science behind wall systems—how the building envelope breathes, how moisture and air travel, and the role that products and installation methods play. Seek out education opportunities from your manufacturer

partners and other building science resources to ensure you and your staff understand how the building envelope works.

Siding Material

Every siding type is different in its makeup and its installation—and therefore how it responds to moisture infiltration. The type of cladding is going to be one of the key factors in deciding between a flat housewrap, a drainable housewrap (which has built-in bumps or ridges to create channels for moisture to drain), or a flat housewrap with an added rainscreen. Always consult siding manufacturer instructions and requirements for the wall system.

Generally, if wood is involved, projects need a full rainscreen (unless the home is in an extremely dry area). Wood cladding can absorb water, which will migrate to the back when the sun hits it. Having a rainscreen in place provides ventilation to dry out the cavity as well as the back of the siding.

BENJAMIN OBDYKE’S HydroGap SA self-adhered drainable housewrap features 1mm spacers that create a true drainage space with 96% drainage efficiency. The housewrap’s 100% continuous acrylic adhesive technology provides sealing around every fastener and penetration point (Photos by Benjamin Obdyke)

High-performance sidings such as fiber cement or poly-ash typically will need a drainable housewrap, with some material instructions and warranties calling for a specific drainage rate.

Vinyl siding sits off the wall and doesn’t absorb moisture, so it typically is installed with a flat housewrap. However, moisture can still accumulate, so a drainable housewrap can add an extra layer of protection. In addition, insulated vinyl siding may have specific requirements for drainability since there is less space behind it.

Geography & Climate

Because building science experts point to rain as the single most important factor to control in order to optimize durability, choosing a building envelope product must be predicated on climate conditions. Winddriven rain is an especially powerful foe, forcing its way into small penetrations in cladding materials and into cracks and holes in the exterior wall.

The main rule, therefore, is that the amount of rain will determine the amount of rain control needed. In areas like the Southwest that receive low rainfall (less than 20 inches annually), a housewrap or building paper should offer sufficient water resistance protection, according to most building experts. In areas that experience moderate amounts of rainfall (20 to 40 inches annually), protection against rain penetration

should include an enhanced housewrap. And for wet and/or humid climates, coastal areas, and hilltop exposures receiving high (40 to 60 inches annually) or extreme (60 inches or more annually) rainfall, a ventilated rainscreen assembly is recommended; a rainscreen system is also advised for areas that receive high winds in addition to rain.

Even in dry, less-demanding climates, builders and designers seeking optimum drying and drainage capability may wish to install a rainscreen or drainable housewrap as added insurance against moisture problems. The cost of using these methods up front during construction is small in comparison to fixing moisture-related problems later.

Thinking as a System

Keep in mind that the building envelope is a system of parts. Work with your manufacturer on a systems approach to ensure that each element in the envelope is working together and that the chemical makeup of one product isn’t impacting the performance of another. Most importantly, be sure that each element, including the cladding, is installed so as to properly dry out the wall assembly. For example, a Rainscreen System for Masonry would include a flat housewrap and a vertically channeled rainscreen with a filter fabric.

By asking the right questions and helping customers navigate the different options for creating a highperformance wall system, dealers become valuable resources that keep customers coming back. MM

EPS to Remain Strong

Expanded polystyrene (EPS) will remain the most used type of foamed plastic insulation, accounting for 49% of demand in 2027, according to a new study by The Freedonia Group.

Demand for EPS insulation is expected to grow 3.3% per year to 4.8 million metric tons in 2026, with gains to be bolstered by:

• the ongoing use of concrete building construction methods throughout the world, as EPS used in insulated concrete forms can enhance the insulation of concrete building products without affecting their structural strength

• the rising popularity of prefabricated housing and insulated building panels

• gains in industrial and HVAC equipment production, where EPS is favored due to its low cost, light weight, and ability to be wrapped around pipes

• its continued pricing advantages over competing foamed plastic products, an important consideration in developing markets

Despite a major downturn in construction in India and Central and South America in 2020, ongoing declines in single-family housing construction in China, a severe crash in the Italian and Spanish housing markets early in the historical period, the global foamed plastic insulation market in weight terms expanded at an annual rate of 3.6% from 2011 to 2021.

THE RAINSCREEN System for Masonry from Benjamin Obdyke includes FlatWrap HP housewrap and the Slicker Max rainscreen

MORE M&A AHEAD

HIGH-QUALITY ASSETS REMAIN IN DEMAND AS INVESTORS CONTINUE TO EXHIBIT CAUTION TOWARDS BUILDING PRODUCTS M&A

------------ BY ANDREW K. PETRYK

THE M&A MARKET has been operating in a wait-andsee mode for the first half of 2023 as buyers, sellers, and lenders look for greater clarity in the macroeconomic environment. Recent headwinds impacting the economy, inflation, and interest rates have had a cooling effect on the deal market and are tempering financing and valuations. In the Building Products market specifically, businesses directly tied to new construction have experienced greater pullback in demand as investors assess the impact of housing starts reverting from record highs experienced in early 2022:

• There is a continued flight to quality and increased front-end diligence with the challenge of evaluating the sustainability of recent performance as a key gating item. Dissecting real versus nominal growth is often the first and most critical item evaluated.

• A gap in valuation expectations exists between buyers and sellers, creating a disconnect in the market and leading some parties to wait for valuations to normalize.

• Debt markets are evolving. Lenders continue to show appetite for high-quality assets but are responding to market uncertainty in the form of reduced leverage and higher pricing. With reduced leverage, private equity sponsors are required to put more equity into deals with the commitment typically higher for transactions involving businesses heavily tied to the new construction market. Traditional bank financing has tightened with the void being filled by non-bank lenders which remain open for business.

Increased visibility will incite greater optimism into the M&A market and incentivize sidelined buyers and sellers

to transact. Over the near-term, the market could see an easing of mortgage rates under the expectation of lower inflation, while recent positive trends in housing starts hold promise that the market may be entering a period of stabilization. Looking ahead, the long-term outlook for the residential new construction market remains favorable, underpinned by strong demand from an aging housing stock and a significant deficit of affordable single-family homes.

Despite the headwinds facing the market today, capital availability, which there is more than an ample supply of today, will continue to keep buyers in the market. Strategic acquirers are sitting on stockpiled cash and need to show growth, while private equity has put little dent in the oft-cited capital surplus ($800 billion+ reported by PitchBook at the end of Q3 ’22), with add-on acquisitions vital to platform buy-and-build strategies. Recent Building Products M&A activity reflects a healthy mix of strategic and private equity buyers, indicative of the appetite to put money to work.

In June 2023, PGT Innovations acquired the remaining 25% ownership interest in Eco Enterprises (Eco), a manufacturer of aluminum, impact-resistant windows and doors primarily serving the south Florida region. “We’re very excited to reach the finalization of this purchase as it will allow us to further serve high growth markets in which we operate,” said CEO Jeff Jackson, commenting on the transaction. PGT Innovations acquired a 75% equity stake in Eco back in 2021. In addition to realizing revenue growth and margin expansion, PGT Innovations added glass production capacity, furthering its vertical integration strategy.

Simpson Strong-Tie acquired Pieresearch in June, expanding its offering of concrete products in the commercial market. Pieresearch is a manufacturer specializing in non-corrosive plastic rebar reinforcing alignment and centralizer products for the deep foundation and earth retention industries.

In May, Builders FirstSource completed the purchase of Georgia-based JB Millworks, a manufacturer, distributor, and installer of millwork whose product offering includes doors, windows, stairs, rails, columns, posts, and trim. The acquisition adds value-added capacity in the Chattanooga area. The transaction followed the April purchase of Builders Millwork Supply, a millwork distributor serving home builders and remodelers throughout South Central Alaska.

Pella Corp. announced in May it is acquiring Lawson Industries. With the acquisition, Iowa-based Pella will expand into South Florida, adding to its capabilities in impact-resistant aluminum windows and doors. Lawson Industries has been serving the Florida market for more than

60 years and will continue to operate under the Lawson brand name post-acquisition. Pella’s other Florida brands include Pella, Custom Window Systems (CWS), and Avanti.

Strategic buyers are also reshaping their portfolios and divesting underperforming and non-core assets to strengthen their balance sheets and enhance earnings. In June, ASSA ABLOY received antitrust clearance to purchase the Hardware and Home Improvement division (HHI) of Spectrum Brands, a transaction previously announced in 2021, for $4.3 billion. HHI is a manufacturer of complementary security, plumbing, and builders’ hardware products that will accelerate the expansion of ASSA ABLOY’s residential business in North America and advance its digital transformation. The business operates manufacturing facilities in the United States, Mexico, Taiwan, China and the Philippines.

In April, Jeld-Wen announced it is exiting its Australasia window and door business, selling to Platinum Equity, an operationally oriented private equity sponsor with significant

Meet the Bear Family

experience in the Building Products industry. The business operates from 41 manufacturing locations across Australia, Malaysia, and Indonesia.

We anticipate the markets will remain cautious during the second half of 2023 for Building Products M&A, although that could change if inflation and mortgage rates cool at a quicker pace than expected. A pipeline of deals is growing in Building Products, and there is going to be a first-mover advantage to buyers standing ready to capitalize and acquire high-quality companies at reasonable prices before the bidding war begins. MM

ANDREW K. PETRYK

Andrew K. Petryk is a managing director and leads the Industrials practice at Brown Gibbons Lang & Co., an investment banking and corporate financial advisory services firm serving the global middle market. Reach him at apetryk@bglco.com.

PAY EQUITY

------------ BY PAIGE McALLISTER

PAY EQUITY means compensating all employees equally for equal or similar work, regardless of factors such as race, gender, ethnicity, disability, sexuality, religion and age. Compensation is anything of value including salary, benefits and perks.

Several federal laws, including the Equal Pay Act, Title VII of the Civil Rights Act, Age Discrimination in Employment Act, and Americans with Disabilities Act, have been enacted to prevent pay inequity; however, they have resulted in slow progress in the gender pay gap. In 1963 when the Equal Pay Act became federal law, overall, women in the workforce made 59¢ for every $1 earned by male workers. In 2022, almost 60 years after the law was

Q. We decided to offer our employees some flexibility over the summer by letting them flex their schedule and dress more casually. Now that summer is ending, we want to change back to our former requirements after Labor Day. However, some employees are acting like we need to allow them this flexibility going forward. Do we?

A. Most employers have the right to dictate policies and procedures such as work schedule and dress code. Usually, these policies can be changed at any time at the discretion of the company. Just like you relaxed them at the beginning of the summer, you can reinstitute the stricter guidelines after summer. Even if employees did not realize they were temporary changes, you can change them back. Of course, if employees are unhappy, they have the right to search elsewhere for employment if that new-found flexibility is important to them.

Rather, the question to ask yourself is “Do the changes need to be reversed?” If productivity stayed the same (or maybe even improved), do you really need to go back to the way things were? But, if there are legitimate reasons to return to the status quo (i.e., summer is typically slow, but you get busy again in the fall), explain that to your employees so they know it is not an arbitrary decision.

If your employees react so favorably to small efforts like that, perhaps consider other ways to offer employees some form of flexibility in the future to keep them engaged and happy.

passed, women earned 82¢ (17% less) for every $1 made by a male worker. Following this rate, experts calculate that women will not receive equal pay until 2059, almost a century after passage of the EPA.

Gender pay differences in the whole workforce show even larger disparities for women of color, with Black women being paid 60¢ and Latinas being paid 55¢ for every $1 earned by white, non-Hispanic male workers.

Disparities continue when looking at education level. Women entering the workforce with a bachelor’s degree earn 18% less than their male counterparts, with an average salary of $52,266 per year, as compared with $64,022, respectively. These inequities continue with advanced degrees and by age. Over the course of a career, this equates to a loss of income of $700,000 for women with a high school degree, $1.2 million for women with bachelor’s degrees, and $2 million for women with professional graduate degrees.

Even when looking at pay with all factors being equal, overall, women still on average only earn 99¢ for every dollar with no justifiable reason. Even in these groups, disparities increase with age, advanced degree, and advancement in the role as women have fewer opportunities for advancement and salary increases. For example, among Fortune 500 CEOs, women make 95¢ for every $1 made by a man. However, only 8% of these CEOs are women.

To help level the playing field, many states have or are looking to pass laws to better ensure equitable pay impacting nearly one out of five people. In general, these laws fall into three categories:

• Pay transparency laws are intended to require employers to pay all new hires fairly and consistently for the job they will be doing. They require companies to develop good-faith pay ranges for all positions based on the job duties regardless of who applies or is hired. Some states require this information to be included in any external or internal job posting while others require it be given to any current employee who asks for it. Laws vary as to how this applies to remote employees who are located within or outside of a state with this law.

• Pay history laws are intended to mitigate the impacts of lower past pay by compelling employers to pay for the job duties the person will be performing, not based on what they were paid before. These laws prohibit current and prospective employers from asking an employee or applicant for their past salary history to use as a guide for future salary offers. Some states prohibit just pay while others prohibit asking about any compensations such as commissions, bonuses, or benefits.

• Pay reporting laws require employers to submit comprehensive data to the state so their wage practices can be monitored. Normally these reports require wage information by job, gender, race and ethnicity, similar to the EEO-1 report.

It should also be noted that the NLRA allows employees to discuss their own salaries, so prohibiting employees from discussing pay is not a valid strategy.

Even employers in states without such pay equity laws should consider making pay equity common practice as equal pay attracts better employees and demonstrates the equal value placed on all employees for their job duties, not their demographics.

There are several ways employers of all sizes and industries in any state can progress toward better pay equity:

• Educate your organization on pay inequity, its impacts, and thoughts to reduce it in your company. Some good resources are Forbes Advisor’s What is Pay Equity and Why Is It Important, Pew Research Center’s Gender Pay Gap in U.S. Hasn’t Changed Much in Two Decades, PayScale’s 2023 Gender Pay Gap Report, and Forbes Advisor’s Gender Pay Gap Statistics in 2023.

• Develop a compensation strategy which reflects the company’s values that will dictate how much you will pay, how you will compare to the market, when exceptions will be made, what factors will be considered, and who can make comp decisions. Ensure that anyone empowered to make pay decisions is properly trained on the possible impacts of discrimination, implicit or unintentional bias, and disparate impact.

• Conduct a thorough comp/pay review to understand what each employee is earning. Include factors such as race, gender, seniority, experience, education, etc., to factually evaluate equity among groups. Engage an outside resource to provide an unbiased, well-researched evaluation so you know the starting point and where you need to improve.

• Update job descriptions with accurate job duties, responsibilities, and requirements to determine legitimate pay differentiators.

• Create pay bands which encompass the pay for every employee in that position. Have enough difference to allow for advancement but not so much that the band becomes arbitrary.

• Link compensation to DEI strategy to give all employees access to not only equitable pay but to the same tools for their success such as opportunities, training, mentorships, feedback and access to management.

• Regularly review and update all of the above to ensure they are current and consistent.

Even employers with the best intentions may face challenges to consistent pay equity practices given the changing nature of the business world:

• Economic impacts, such as an increasing cost-ofliving, give employees less options to work for less just because they like a company.

• The workforce is changing, becoming smaller, younger and more diversified, so overall, potential employees have different priorities and more options for employment.

• The workforce is more remote so it may be harder to compare job duties or working conditions or to create a salary band that satisfies the varying cost-of-living rates in the areas where employees or applicants live.

At the end of the day, pay equity is about fairness. Pay equals value, and all employees should be valued equally for what they bring to your organization, not due to their gender, race or lifestyle.

PAIGE McALLISTER

Paige McAllister, SPHR, SHRM-SCP, is vice president for compliance with Affinity HR Group. Reach her at (877) 6606400 or contact@affinityhrgroup.com.

HERBERT LUMBER GOES ESOP

After more than 75 years of Herbert family ownership, Herbert Lumber, Riddle, Or., has become a fully employee-owned sawmill.

As of May 31, the company transitioned to an Employee Stock Ownership Plan & Trust (ESOP). As a 100% ESOP-owned company, a portion of all future stock will be held in trust by the ESOP exclusively for the benefit of Herbert Lumber employees.

“I am excited by the tremendous opportunity that our ESOP offers to the employee-owners of Herbert

Lumber,” said Lynn Herbert. “I look forward to continuing to serve as CEO throughout our transition, doing all that I can to ensure this new chapter in Herbert Lumber’s history is a rewarding success for each of you. I am confident that our ESOP will help preserve our well-earned reputation for many years to come.”

DR JOHNSON SELLS CLT MACHINERY

D.R. Johnson Wood Innovations, Riddle, Or., has decided to sell off the equipment in its cross-laminated timber plant.

On July 10, the company began

showing the equipment, which includes: a USNR CLT Press, Hundegger PBA-D CNC machine, Steinemann SATOS-32K panel sander, Clarke’s Baghouse dust collection system, and various roll cases.

NEWS BRIEFS

Ganahl Lumber is opening its new location in San Juan Capistrano, Ca., this month.

Lindsey Home & Hardware, Mesa, Az., closed after less than four years—unable to ever catch its footing after opening just before the onset of the pandemic.

ABC Supply added a branch in Twin Falls, Id., managed by Jason Conover.

Disdero Lumber, Clackamas, Or., is now distributing AFCO Columns and Railings to the Pacific Northwest and beyond.

Royal Plywood Co., Cerritos, Ca., now supplies Abet Laminati’s Easy Meg exterior-grade phenolic façade system in California, Arizona, Nevada, Utah and Hawaii.

City Mill, Honolulu, Hi., is partnering with Trevor Thompson, founder of Hawaii-based Pono Stone, to launch a new ASPEC line of DIY wall and floor tiles.

Andritz of Austria will supply a complete fiber preparation line for MDF production to Roseburg Forest Products’ new mill to be built in Dillard, Or.

Mickey, New York, N.Y., launched Mickey | Contractor Direct, an LBM sourcing platform for contractors. The division is headed by Jeffrey Crouse, VP of trading.

Bingaman & Son Lumber Inc., Kreamer, Pa., is now packaging Nova USA Wood Products’ ExoClad QuickClip hidden siding fastening system with its Americana thermally modified rainscreen siding.

Weston Forest, Mississauga, Ont., has acquired Kings Wood Products, Paris, Ont.

84 Lumber accepted David Weekley Homes’ annual National Preferred Partner Award for the fourth year in a row. Others honored included DuPont, GAF, James Hardie, J.P. Hart Lumber, Johns Manville, L&W Supply, Moen, Simpson Strong-Tie, and SRS Distribution.

TNT ACQUIRES SIERRA FOREST

Sierra Forest Products, Terra Bella, Ca., has been acquired by Sierra Forest Products Holdings, Inc., a partnership of TNT Wholesalers’ owners, Dave Thomas and Greg Mitchell, and current Sierra Forest Products sales manager Seth Hokit.

TNT Wholesalers, Newport Beach, Ca., was founded by Thomas, who soon partnered with industry veteran Mitchell to create a premier resource for fellow wholesalers, lumber distributors, and end-users of industrial lumber products.

“This important step forward will ensure the continued success of TNT’s scalability,” said Thomas.

Mitchell added, “We are humbled and honored by the torch of Sierra Forest’s unparalleled reputation of quality softwood lumber products being passed on to us.”

Hokit’s experience in sawmill sales has earned him a reputation as a creative and talented lumberman. He has built his lumber career on the development and maintenance of business relationships. His insight and knowledge of the workings of the industry will allow Sierra Forest Products to continue being a market leader.

Sierra Forest Products president Kent Duysen will continue to be an integral part of Sierra Forest’s success and will remain on staff as

a mentor and leader with the company. With his 46 years of industry experience, he will help to lead SFP into the future.

TNT’s wholesale distribution arm will be led by Greg Mitchell and his team of traders that include industry veterans with over 35 years of wholesale lumber trading.

Sierra Forest Products was established in 1967 and boasts over 300 acres of sawmill and forest land in Central California. SFP will now add 10 acres of lumber and plywood distribution.

The SFP sawmill will continue to produce dimensional lumber, pine commons, and industrial grades of softwoods, joining TNT’s offerings of upper grades, various domestic and imported hardwoods, as well as plywood and other panel products. The facility’s centrally located site will allow statewide distribution for just-in-time buying clientele. With abilities to service throughout the Southwest U.S. and Mexico, Sierra Forest Products’ reach will be greatly expanded.

SRS PURCHASES NEVADA’S WASHOE

SRS Distribution has acquired Washoe Building Supply, Sparks, Nv., a distributor of residential and commercial roofing products.

Products:

Doug Fir

Western Red Cedar

Southern Yellow Pine

Western Hemlock

Alaskan Yellow Cedar

West Coast Softwoods

SW Alder Street, Suite 1050

OR 97204

Washoe was founded in 1981 and is currently owned and operated by Scott, Zach and Christina McGrath. They will continue to lead the company’s dedicated team under the Washoe banner.

Dan Tinker, president and CEO of SRS, said, “The company has earned an outstanding reputation in the market and will be an excellent complement to our existing Roof Line branch in Reno.”

The former owners said, “After several decades of developing Washoe into one of Reno’s leading roofing distributors, we decided it was time to find a partner that could take our business to the next level. SRS has an exceptional track record of taking care of its people and being a loyal steward of its families’ legacies, which made the decision to join SRS incredibly easy. We firmly believe SRS is the best home for both our company and our people, and are excited to see what we can achieve with their support.”

Patrick Lumber Company is a secondary manufacturer and exporter of niche high-grade softwood products sold to a network of worldwide distribution.

Celebrating

MAZE LUMBER

1848 Founded by Samuel Maze in Peru, Illinois

1886 Purchases First Nail Machine to Produce Nails from Pure Zinc

2023 Maze Lumber is the Oldest Lumberyard in Illinois

MAZE NAILS

1900 First Manufacturer to Pack Nails in 50 Lb. Boxes

1905 First Manufacturer to Pack Nails in 5 Lb. Boxes

1914 Produces the First Hot-Dipped Nails by Hand

1930 Designs and Launches Spiral Shank Nail Product Line

1934 Designs and Launches Ring Shank Nail Product Line

1955 Develops Exclusive Stormguard Double Hot-Dip Galvanizing

1996 Founded S.S.E., our Collating Division

2006 Earns Miami-Dade County Approval on Selected Roofing Nails

2008 Certified by Scientific Certification Systems for Recycled Content

2011 Fifth Hot-Dip Galvanizing Production Line Installed

2011 Highlighted on ABC News, Diane Sawyer’s Made In America

2016 Installs Second Paint Production Line for Trim Nails

2023 EVERY Maze Nail still 100% Made in the USA

AMERICA S PREMIER SPECIALTY NAIL MANUFACTURER

Grady Mulbery will retire as president and CEO of Roseburg, Springfield, Or., effective Sept. 30. He will be succeeded by current chief operating officer Stuart Gray. Mulbery will remain on Roseburg’s board of directors through the end of 2023 and serve as an executive advisor through 2024.

Jim Lewman, All-Coast Forest Products, Cloverdale, Ca., is retiring Aug. 31 after 51 years in the industry, the last 27 with All-Coast.

Chris Kizorek, ex-Huttig/Woodgrain, has been named distribution center mgr. for Cameron Ashley Building Products, Sacramento, Ca.

Antoinette Davis has joined City Mill Co., Honolulu, Hi., as director of retail operations.

Stephanie Delier is new to inside sales at Alpine Lumber, Frederick, Co.

Jim Herold has retired after 46 years in the business, the last 25 with Rainier Veneer, Spanaway, Wa.

Scott Hahn has been promoted to commercial sales mgr. at Spenard Builders Supply, Anchorage, Ak.

Jessica Dirksen, ex-Jeld-Wen, has joined OrePac Building Products, as Gilbert, Az.-based outside sales territory mgr.

Tom Perotti, ex-Build Right Contractors, has joined the sales team at Ready Made Truss & Builder Supply, Salt Lake City, Ut.

MEAD LUMBER REBRANDS

Mead Lumber, Omaha, Ne., launched a rebranding initiative aimed at updating the company’s look and creating consistency across its business units, both with employees and customers.

As part of the initiative, Mead Lumber will unveil a new and modern logo, new website, and new web address—meadlumber.com. Some locations will also be changing their name to Mead Lumber, while others will keep their name but will follow the new logo and design scheme.

Based in Omaha, Ne., Mead operates more than 50 locations in nine states, including Knecht Home Centers in Wyoming and Colorado and Thomae Lumber, Rock Creek Lumber, and Triple “S” Building Center in Montana.

At the heart of the rebrand is Mead’s brand promise: “To Make You Feel at Home, From Design to Finish.”

“Our team has been working tirelessly to develop a fresh look for our brand that better represents the quality, reliability and innovation that our customers have come to expect from us,” said CEO Dave Anderson. “This new branding highlights our commitment to providing top-notch service and support for all of our customers.”

Zachery Miera, ex-R/W Specialties, is a new EWP specialist/ outside salesman for Boise Cascade, Denver, Co. Loren Estevan, ex-Lansing Building Products, is also new to inside sales. Hans Shen is now a general line product mgr. in Salt Lake City, Ut. Terria Shelver has been promoted to EWP sales in Woodinville, Wa.

Kevin Mancill has been named branch mgr. of L&W Supply’s new location in Flagstaff, Az. Chris Vanderstappen is the new branch mgr. in Fort Collins, Co.; Raul Moya in Bakersfield, Ca.; and Dustin Stansberry in Tigard, Or.

Eric Jackson is now trading hardwoods for TYR Wood Products, Portland, Or.

Mark Thiel, customer service & distribution mgr., PABCO Gypsum, Las Vegas, Nv., retired July 14 after 37 years with Pacific Coast.

Lara Moore has been named chief financial officer for Collins, Wilsonville, Or. Frank Torresy, ex-Agriculture Capital Management, was appointed general counsel.

Sergio Robles, Foxworth-Galbraith Lumber, Phoenix, Az., has been promoted to VP of manufacturing for Colorado and Arizona.

Dale Brown has been appointed CEO of Wood Technologies International, Woodland, Wa. Outgoing CEO Craig Tompkins will serve as a strategic advisor to the board of directors.

Bill Wilson has been promoted to VP of sales & operations for the West, including California, with Gulfeagle Supply. Mark Garboski, chief operating officer, Kodiak Building Partners, Highlands Ranch, Co., is moving to a strategic advisor position. He is taking a step back for health-related reasons. Moving forward, executive VPs of operations Mike Flood and Pat Flood will report directly to CEO Steve Swinney, with Mike Flood and Jeff Smith, Kodiak’s CFO, assuming additional leadership responsibilities.

Len Moscowitz, ex-Holbrook Lumber, has been appointed director of business development for CUTEK USA.

Andrew Wamser has been named senior VP and chief financial officer-elect for BlueLinx Holdings, Marietta, Ga. He succeeds Kelly Janzen, who’ll stay on until Aug. 31 in an advisory capacity.

Jacques Vauclain has been named VP of finance for LMC, Wayne, Pa. John McKenna has been promoted to millwork purchasing mgr.

Mallory Bates was promoted to merchandise mgr. for Do it Best, Fort Wayne, In. Also promoted were Kendall Cooper and Megan Morgan, to associate merchandise mgrs.; Dan Wasvick, INCOM & sales product mgr.; Jakob Bowden and Amy Onion, INCOM & sales specialists; and Nathan Selvey, web merchandiser. New to Do it Best are Stephen Busch, as a pricing analyst; Dustin Clark, merchandise mgr.; and Kyle Cochran, demand forecasting analyst.

Quonta Vance has been promoted to executive VP-pro & home services for Lowe’s Cos., Mooresville, N.C.

Earl Bernard has been named communications director for Orgill, Collierville, Tn. He succeeds Kristyl Lawson, who is now director, talent development.

Trina Forrest is new to log purchasing for Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

CLOSING

KNOW YOU’RE GOING TO GET THE SALE

— BY JAMES OLSEN —

BEFORE WE TALK about technique, let’s talk about the Closer’s mentality. There is a dichotomy to the closing mentality. On one hand, the Closer KNOWS that they are going to get the order, but they are also PREPARED to overcome objections. It’s like a shooter in basketball has to KNOW they are going to make every shot AND that they must rebound and get back on defense on every shot.

Closer’s Tone

I was working with one of my students. She sounded scared and timid before she got orders and confident, calm, and friendly after she got orders. I told her that I wanted her to sound confident, calm, and friendly before she got orders.

In sales it’s called “acting as if.” We should act like “as if” we sold 20 on the last call and we are going to sell 20 on the next. If that were true, how would you sound on your sales calls? I call it the “I want your business, but I don’t need your business” tone. Closers are calmy, naively confident.

This calm, positive tone may sound easy but after a couple days without an order, it takes some mental toughness to pull it off.

In addition, Closers are warm, friendly and act like they enjoy what they are doing. No one wants to push a bag of rocks up a hill with us, but many sellers sound like that is what they are doing and can’t understand why people hustle them off the phone.

Never Do This

Many “sellers” (they aren’t) call customers and ask, “Is there anything you need today?” or some veiled variation of this question. These people get bad treatment and deserve it because they don’t bring any value and waste customers’ time.

Multiple of Multiples

Then there are the sellers who call and offer one of

one item. The Closer comes to the call with multiple items and more than one of each of those items. They don’t list them all off and ask, “Whaddya think of that?” They promote each item separately and try to close on each separate presentation. This brings more value to the customer and gives the Closer more shots on goal.

Closes That Work

• List The Benefits Close

Closer (after the greeting/small talk): “Susan, I came across three trucks of 2x4 16”s. (1) They are out of a mill you like. (2) 16’s are tightening up. (3) And we’ve got a smokin’ price on these. How many can you use?”

We have asked for the order without giving them the price; is that even possible? YES!!! We hold back the price for two reasons: one, it is a litmus test. If the customer says no thank you, we have more probing to do or we move to our next item. Two, if there is any interest at all, they will ask.

Customer: “What’s the price?” We now at least have them engaged. Then we say,

Closer: “That’s the best part, Susan. We can pick these up for $600/MBF, which is a great deal in this market, so do you want to take all three?”

Now we have planted positive thoughts about the product in the mind of our customer. The decision-making process is usually a short time (five to 10 seconds), and we want them thinking about the value when they are deciding, not just the price.

• Similar Story Close

“I understand that you have reservations, John. A lot of customers do. I was talking with one of my customers last month and he had the same concerns. He put on a trial load, and he just re-ordered this morning!”

“John, last time you told me you wanted to wait, and I let you. You called me two days later and the stock was gone, and the price was up.”

Fear is a great motivator. If you can show your customers that waiting is not a positive option for them, they will buy.

“Susan, we can wait if you want, but this product will not be here tomorrow. My partners are selling these left and right. We had 20 of these yesterday, and we’re down to five. Why don’t we put these together before they (the last five) are sold?”

A word of caution: don’t overuse this close or you will undermine the relationship and your own credibility.

• Project the Future Close

“You are going to love this stock.”

“This is going to be great for you when you buy it.”

“You are going to love this when it gets to you.”

“By the time this lumber gets to you, you’re going to be $50 under the rest of the market.” (It helps to be right on your market call when you use this close, or it will be difficult to use next time.)

“This is going to be such a great deal you’ll erect a statue of me in the lumberyard when this stock arrives.”

Customers do it with us all the time. They tell us why, at some future date, the product we are presenting to them won’t work for them down the road. We must turn the tables. Tell your customers how happy they are going to be when your stock arrives. Tell them how great they are going to look when this stock comes in so far below the market price. Paint them a successful picture of your proposal and you will get the business!

How to Train Yourself to Always Ask for the Order

If you forget to ask for the order, call the customer back and say, “John, I wanted to apologize about that last call.”

“What do you mean?”

“You’re a professional buyer, you deserve a professional call and I forgot to ask for the order. May I have your order, please?”

After two weeks, we won’t fail to ask for the order anymore.

In Closing...

When I first started in sales, I read a book by Tom Hopkins, How to Master The Art of Selling. Tom said that 80% of people in sales positions don’t ask for the order. At the time I thought that was a high number. After 30 years training salespeople, I’d say he got it right.

Choose a simple close or two that you like. Start using them with your high-rapport customers first and build from there. Once we are comfortable asking for the order more customers will feel like giving them to us.

James Olsen is principal of Reality Sales Training, Portland, Or. His latest book is Sex Doesn’t Sell: Confidence Does. You can call him at (503) 5443572 or email him at james@ realitysalestraining.com.

WFP COAST TIMBERS - DOUGLAS - FIR

SOURCED NATURALLY STRONG

BRANDING

AMP UP YOUR BRAND TO MAXIMIZE VALUE

— BY JANE CAVALIER —

BRANDING IS NOT what you may think. When executives consider branding, especially those with strong financial experience and limited marketing exposure (a classic CFO), they often see an expense with questionable ROI: a logo, tagline, website, marketing materials.

While these are tools for delivering and building the brand, they are not the brand. The brand is a deliberate mental framework with a set of perceptions that resides in the mind. It is a result of brand-building actions and creates value by influencing decisions. That’s the priceless value of a powerful brand—almost invisible influence. It’s why Warren Buffet recommends investing in companies that have a powerful brand.

Emotional Influence Makes a Difference

People are making decisions about your business all the time. If you want to influence their willingness to try something new, give you a shot, overlook the imperfect, buy more, pay more, cut you a break—an emotional advantage tips the scale in your favor.

Your brand is a mental filter that affects how people think and feel about your company, products and people. It shapes how people interpret what they see and what they are willing to believe, accept and forgive. Johnson & Johnson has saved hundreds of millions in downside costs and produced even more in revenues with accelerated adoption of new products, by leveraging a brand built on the pure bond between a mother and child. That essence softens the edges and keeps people predisposed in J&J’s favor.

Experts say up to 90% of decisions are based on emotion. From Wall Street to Main Street, people use their “gut” and take pride in making up their own mind. They even refute facts and authority when feelings are strong. Powerful brands help people to see things in a specific way. They define a context and make people feel. Think John Deere, Nike, Chanel, the U.S. Navy, Yeti, Apple. Even tiny brands in niche markets wield enormous authority.

More Control Over the Human Side of Business

As a leader, you’ve experienced more change these days than your predecessors did in decades. You face challenging times fraught with emotional volatility. It is a VUCA world—volatile, uncertain, complex and ambiguous. The pandemic, Great Resignation, war in Ukraine, remote work, supply chain disruptions, and extreme weather have businesses scrambling to keep up with constant changes in human behavior. You can address these shake-ups with a powerful brand so they don’t shake down your business. Convey calm in stormy times. Provide warmth in a cold market. Deliver clarity in a sea of confusion. This is how to break through to people so they remain by your side and behind your business in an upside-down world.

Branding is less about marketing and more about business strategy and control. It is a strategy to consistently influence people from the inside out. Branding is soft power, not hard power. If you want to influence customers, partners, employees, regulatory authorities, journalists or anyone who can affect your business, think about the value of having a brand filter in place to shape perceptions and emotions. Alternatively, think about how not setting that mental construct and allowing the market or competitors to define it, creates risk.

Don’t let lack of time and resources and outdated legacy thinking stop you from doing everything it takes to influence the people who make your business live or die.

Jane Cavalier is founder and CEO of BrightMark Consulting, best-selling author of The Enchanted Brand, Amazon, and a business strategist who has helped build powerful brands like Snapple and Qwest. Learn more at www. brightmarkconsulting.com.

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MARKETING THE 4 P’S AREN’T ENOUGH ANYMORE!

— BY GREG BONSIB —

EVERYONE KNOWS the four P’s of marketing… Product, Promotion, Price and Place.

But Gino Biondi, vice president of sales & marketing at Zenith Products, has suggested that the four P’s of marketing aren’t enough anymore. Instead, he believes it takes a baker’s dozen of P’s to represent the many facets of product, channel and brand marketing.

P #1: Performance

No marketing plan is worth its weight without specific and measurable metrics and goals.

• Profit

• Sales

• Share

Performance should be the first P. It lets you know how the brand is performing and allows you to set performance goals.

P #2: Positioning

This P establishes the brand road map.

• Relevant and meaningful consumer insights

• Attributes

• Functional benefits

• Reasons-to-believe

• Emotional benefits

• Brand essence

• Brand character

• Brand tone

• Iconology

P #3: People

The idea that there are multiple targets to consider is the basis of this P.

• Primary bull’s-eye consumer — demographic, psychographic, attitudinal, & behavioral

• Secondary target purchasers or influencers — moms, kids, teachers, doctors, etc.

• Stakeholder customers/retailers/resellers — If they don’t carry it, you can’t sell it.

• Sales professionals, installers, service people — salespeople like to sell it, the installer prefers to hook it up, and customer service likes to take the calls.

• Internal employees — passion and word of mouth gets generated internally first.

P #4: Product

Product is the foundation of the brand.

• Tied to the Positioning (P #2) key attributes

• Differentiated key benefits

• Innovation

• Cost base versus your competitor

• Volume

• Meeting/exceeding quality expectations

P #5: Packaging

Packaging can be the most impactful marketing tool.

• Form is a key communicator and provides key benefits—an upside-down bottle of ketchup changed the industry and mustard, mayo, shampoo…

• “Green” packaging or wasteful materials impacts attitudes.

• Quality has an emotional response—sloppy fit and finish or crooked labels say a lot about the brand

• Graphics need to be compelling — authentic, modern, innovative, nostalgic, youthful, serious, fun

• Services, too — trucks, vehicles, uniforms. Think Molly Maid, Geek Squad, UPS, even nametags on a store clerk.

P #6: Proliferation

How far should the brand extend?

(Continued on page 34)

“Growing beyond measure.”

• Product proliferation can be key to distribution, shelf expansion or consumer needs.

º Flavors, varieties, colors, fragrances

º Promotions, seasonal

• Proliferation can be bad!

º It creates operational complexity and increase the risk of underperforming SKU’s.

º What is the supply chain tolerance level in your company?

º Non-value added features add cost that may not be recovered.

• Customer exclusivity may require SKU proliferation as well.

P #7: Promotion

This famous P should get a narrower view.

• All brands need promotion strategies for both consumers and customers.

• Relatively short-term or loyalty building vehicles

º To prevent switching to another competitor

º To induce switching from a competitor

• Promotion can be used to create excitement around seasonal opportunities.

º Halloween, spring cleaning, back-to-school, tax time

• Create brand excitement and pull-through

º Sweepstakes, contests, themed events

P #8: Projection

Brand communications is the theme of this P.

• Translating positioning into compelling creative/copy

• Integrated marketing is at the core of Projection.

• Every medium is different and how you use it should be treated uniquely.

º Mass media

º TV, print, radio

º Digital (social media, blog posts, internet, website, viral, e-commerce, direct, outdoor, mobile, event, sports marketing, sponsorships, entertainment)

• Consider ethnic audiences as well

P #9: Public Relations

PR is the cherry on top of the cake. When fundamentals are in place, PR creates a genre for the brand.

• Cause-related marketing (charities) — Breast Cancer, Victory Junction Gang, Habitat for Humanity

• Major relevant events — hurricanes, storms, earthquakes, anniversaries, milestones

• Word-of-mouth

• More realistic and relevant with real user or third-party endorsements.

• Spokespersons

P #10: Programming

This P tackles media choice.

• How much should be spent on media?

• How much should be allocated to different mediums?

º TV

º Digital

º Print

º Radio

º Outdoor

º Direct

º Non-traditional

Be sure to measure the effectiveness of each medium.

P #11: Price

Price has multiple components and needs unique strategies and plans for each.

• List pricing

• Everyday Low Price (EDLP)

• High/Low pricing

• Hybrid EDLP with opportunistic promotions

Critical to the decision is your channel and customer strategy, competitive situation, portfolio mix, and consumer pricing sensitivity.

P #12: Place

With this P you need to think broadly… from global, to region, to channel. Global: International challenges require putting the previous P’s together to determine the merits and overall strategy of succeeding on a global basis. Region: Regional differences do exist.

• Economic, climate, culture, population, etc.

Channel: Requires deep analysis to determine tradeoffs and if presence is needed.

• Club, mass, home improvement, grocery, convenience, sporting, industrial, electronics, specialty, hardware, dollar, drug, distributors, office, etc..

P #13: Placement

Gino considers this to be a bonus P that considers the ideal place in the store where products and services should be located.

• How do you get it there?

• Front or back?

• Which direction from the aisle?

• On the counter or checkout?

• Near adjacent categories?

• Near complimentary purchase categories?

• Which position on the shelf?

º Quality

º Brand block

º Size

º Variety

By thinking through Gino Biondi’s 13 P’s of marketing, you’ll thoughtfully consider your brands range of options and maximizing your marketing effectiveness.

Greg Bonsib has extensive experience working in senior marketing roles at Owens Corning and Newell Brands, and is currently head of marketing & operations at Worthington Industries. Learn more at www. channelinstincts.com.

VIDEO CONTENT MARKETING 5 RULES FOR GREATER REACH

— BY PATRICK McGOWAN —

BEING ON VIDEO and watching videos is today’s business norm. A recent survey showed 76% of consumers watched a video before purchasing a product. Social media influencers promote products through video-based storytelling. You login to video meetings daily with prospects and customers.

Since 2005, the year YouTube launched, video has increasingly grown in prevalence, production value, and consumption. Then in 2020 video marketing took a massive leap forward with the pandemic-induced use of video conferencing, podcasts (with video), and livestreams.

Today, YouTube is the most used social platform for research purposes among business-to-business decisions makers with 50.9% of users. And every day more than 300 million people participate in a Zoom meeting.

The reluctant say about video meetings, “It’s not going away.” Strategic leaders, though, say, “Video is how we do business now.”

In today’s business world all video is video content marketing. Zoom is not a phone call with video. Whether it’s a livestream or a self-produced YouTube short, your videos still need to follow a handful of rules.

1. Positioning.

Some marketers consider the word brand to be a four-letter word. The job of marketers and business leaders, they say, is to position a company or product in the market. The brand becomes how customers define it, and, hopefully, they define it based on your considerable efforts.

The best marketers see this work of positioning to be the first and most important activity. They have learned to be comfortable with discomfort, because good positioning feels limiting. Good positioning is uncomfortably narrow.

It’s a single, narrowly defined target buyer. Your videos (live and recorded) will improve once you know who you are producing them for and what their motivations are.

2. Differentiation.

What makes you different is what gets people’s attention. Not different for different sake, but a viable, propositional difference which appeals to your ideal buyer.

It’s a noisy, messy and chaotic market. You want to be a brand which means you can charge a premium. If there is nothing to distinguish yourself from the competition, then you’re a commodity and you can only compete on price.

Your differentiation needs to be relevant and clearly expressed on all your video channels, especially video meetings. The first step is to shift responsibility for video meetings from operations to marketing. The next step, especially with a hybrid workforce, is to make sure that everyone who shows up on video is well trained and that their presence represents the value of the brand.

3. Distribution.

Where to post your videos is determined by positioning and differentiation, not trend or fashion. A fishing guide once said, “You’re not fishing unless you have fish under your boat.” Or as Maverick said to Goose in the first Top Gun, “Target-rich environment.”

Distribution can include everything from the social media platform (LinkedIn, TikTok) to the video distributor (YouTube, Vimeo) to the livestream platform. It answers what and how of your video content strategy.

Regardless of platform, you want all your videos to do one thing: direct interested parties to your website. There they learn more about you and begin to fall in love with you.

Distribution isn’t a benign decision. It says a lot about who you are and the people you’re trying to reach.

4. Story

Stories draw prospects in and customers closer. A well-told story engages the right people into a deeper, more meaningful conversation.

The right story you want to tell elevates the customer as hero. It captures your positioning and differentiation. How you will tell your story—written, audible or visual— will be determined by the platform you choose and the audience you want to reach.

TikTok is both a genre of video and a distribution platform. The audience consumes video through a spontaneous scroll. How you tell your story on TikTok may not work on LinkedIn.

Additionally, your video meetings, podcasts, and livestream productions express the story of your brand. The way you show up on video tells a story. But is it the right story? Your video meetings and podcast presence need to set the tone and timbre of future engagements.

5. Surprise

Better video is an act of kindness. Do everything you can to be more present across the lens.

We all spend enough time in front of a camera. When you show up on camera with a better-than-expected presence, you surprise people. Surprise is one ingredient in being unforgettable.

When you are not present, people check out. When

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you are present, people respond. Presence is what you say before you say a word.

Your presence should communicate confidence, power, and credibility. This will surprise some people. When combined with confidence, you’ll be more persuasive.

Conclusion

Video content is a critical component to your digital content marketing strategy. All video—whether meetings, podcasts, e-learning, or social media—deserve careful review and attention.

Video is a powerful and compelling medium. These five rules provide the framework you need to begin to evaluate what you’ve already produced and what you plan to produce.

Say to yourself, “Video is how we do business now.” Go and do it.

Patrick McGowan, MBA, consults, trains, and coaches business executives and teams to have more power, presence and credibility oncamera in a video-first market. He is founder of Punchn and the author of Across the Lens: How Your Zoom Presence Will Make or Break Your Success. Please visit www.punchn.io.

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3 PRACTICES TO BEGIN TO LEARN HOW TO LEARN

— BY DAVE KAHLE —

WHAT MAY BE the single most important predictor of an organization’s long-term business development and survival is that organization’s ability to learn. In a world that is changing more rapidly today than at any previous time in human history, the consistent practice of learning is the only sustainable long-term strategy.

Products will come and go with increasing short life spans, advantageous relationships will ebb and flow, as will every other competitive advance. But, the ability to change and grow will stimulate an organization to the constant renewal and refocus that our changing environment demands.

That’s one of the key issues in Peter Senge’s book, The Fifth Discipline. In it, he identifies the benefits and practices of a “learning organization.” Unfortunately, the recommendations in Senge’s book are often outside of the reach of most small businesses.

Definition

By learning, I mean the ability to take in new information, formulate it into new ideas, and then put those ideas into existence. Learning, for adults on the job, always manifests as changed behavior. The individual, the team or group, and the organization as a whole has to do something differently for learning to have taken place.

For an individual, learning means the consistently applied process of exposing yourself to new ideas, then changing your behavior as a result. It’s not a one-time event, but rather a discipline that is maintained and applied forever. For example, when a salesperson develops a better question to ask in collecting information about a proposal, the issue isn’t the question, it’s the ability to continually develop better questions.

For an organization, learning means the institutionalization of practices that result in innovative products, processes and practices. It’s not the new product that’s important; it’s the ability to continually create new products.

This ability to continually change behavior, both organizationally as well as individually, is the single biggest indicator of long-term success.

The problem

Most individuals don’t value learning, and most organizations have never given it serious thought. In my work with salespeople for example, I’ve often noted that given a random selection of 20 salespeople only one in that group will have spent $25 of his/her own money on his own improvement in the last 12 months. The 5% who do invest in themselves are often the superstars, who have become that by relentless learning.

Self-Assessment

Here are five simple questions to determine the degree to which your organization values and promotes learning.

1. To what degree is learning mentioned in the company’s foundational documents (its mission values, vision statements, self-description on the webpage, etc.)?

2. To what degree does the organization reward or penalize new ideas, attempts to do things better, or risks taken, regardless of the outcomes?

3. To what degree does everyone understand that continually personal and organizational improvement is expected and rewarded within the organization?

4. How much money (expressed as a percentage of payroll) does the organization invest annually in learning experiences for its employees?

5. To what degree are individuals who refuse to learn tolerated within the organization?

Some practical ideas

The process of transforming an organization into one which learns, consistently and relentlessly, deserves more thought than this article allows. However, here are

three low-budget, immediately implemental practices that will kick-start the process and bring a rich return on investment.

1. Promote the idea.

Announce over and over in every situation, that the organization and every individual in it, need to learn. Let that message become a mantra. Whenever possible, give examples, tell success stories, and recognize specific learning behaviors. You should be promoting that message so consistently and passionately that employees begin to tire of hearing it.

2. Invest in learning experiences.

A learning experience is an event in which folks are confronted with new information, ideas and insights, and encouraged to change their

behavior as a result. For example:

(a) You can hold a monthly meeting dedicated to discussing a book which all of you have read and isolating two or three ideas of implementation out of it.

(b) Do the same thing with a jointly watched video or podcast.

(c) Reimburse key employees for attending seminars and require them to share good ideas from them.

(d) Hand a book to a key employee, ask him/her to read it, and then talk with him about it.

3. Model learning behavior.

You can’t just talk about it and encourage others to do it. You must model what you want them to do. That means that you must read the books, watch the videos, listen to the

podcasts, read the blog posts, go to the seminars, and then change your behavior in positive ways as a result. And, you must tell people what you are doing and why you are doing it.

You being a model of what an active professional learner does will go a long way to encourage and support similar behavior from the troops.

Dave Kahle is a leading sales authority who’s written 12 books, including his latest: The Good Book on Business Reach him at davekahle.com.

KOLBE EXPANDS MANUFACTURING INTO THE WEST

After 75 years of manufacturing solely in Wisconsin, Kolbe Windows & Doors has expanded production to the Southwest, with the opening of a 27,000-sq. ft. facility in Phoenix, Az.

“As our third manufacturing site, the Phoenix location will help us grow our capabilities while creating a closer connection to the West Coast market. The increased production will allow us to better meet

market demand and the needs of our customers,” said Keith Koenig, VP of manufacturing.

The operation includes 22,000 sq. ft. of manufacturing space, plus a small showroom and offices.

Kolbe will also continue manufacturing at its plants in Wausau and Manawa, Wi.

WESTBURY RAILING EXPANDS TO PACIFIC NORTHWEST

Digger Specialties Inc. is partnering with distributor Alexandria Moulding, Moxee, Wa., to bring its Westbury Aluminum Railing into the Pacific Northwest.

Alexandria will distribute the products to Washington, Oregon, Idaho, and Montana.

The Palmer Marketing Group will be representing DSI and supporting the ongoing sales needs of Alexandria Moulding.

Jeff Clark, regional manager at Alexandria Moulding, noted, “This is an exciting new venture for our two companies. We will service our markets with the Westbury line in true Alexandria fashion by

KOLBE WINDOWS & Doors opened its first production facility in the West—in fact, first outside of Wisconsin—with a 27,000-sq. ft. facility in Phoenix, Az.

providing the highest quality railing products, on-time, and with a 100% fill rate.”

Westbury railing is currently available at lumberyards and home centers throughout the Southwest, Midwest, Plains, North Central, Southeast, Northeast and Mid-Atlantic regions.

Larry G. Boyts, DSI VP of sales & marketing, said, “This expansion will lead the way in positioning DSI and Westbury Aluminum Railing into the western United States. Alexandria Moulding’s proven distribution excellence will be a major asset to DSI’s growth initiatives and will bring new sales opportunities to both companies.”

DRIVER CRASHES INTO OREGON ACE

Four people inside Ace Hardware in La Pine, Or., were injured when a woman accidentally crashed her car into the building.

About noon on Saturday June 24, police were alerted that a person had driven into the building, pinning a staff member inside.

While trying to park her 2016 Jeep Cherokee in the store’s lot,

the 66-year-old motorist inadvertently stepped on the accelerator instead of the brake.

None of the customer or employee injuries were life-threatening. The driver was not harmed, nor cited by authorities.

GEMINI ACQUIRES RUDD COATINGS

Gemini Coatings, El Reno, Ok., has acquired the assets of wood coatings manufacturer Rudd Co. Inc., Seattle, Wa.

Rudd’s brands include Rudd Wood Finishes and Glitsa Wood Floor Finishes.

“Rudd Company was established in 1912 and has built trusted brands with a robust product line,” said Chris Hicks, president/CEO of Gemini Coatings. “Their reputation for innovation, reliability and customer service is a perfect fit with our own values and mission. We relish the opportunity to expand our range of solutions for our customers.”

Gemini Coatings is a 100% employee-owned wood coatings manufacturing company with a focus on interior and exterior coatings for professional wood finishers,

distributors and consumers.

“This acquisition will add value for current Rudd and Glitsa customers through our knowledgeable sales and technical teams as well as access to Gemini’s current family of brands,” Hicks added.

CLEANUP SOUGHT FOR IDLED EUGENE TREATING FACILITY

J.H. Baxter’s shuttered wood treating plant in Eugene, Or., may become a federal “Superfund” site.

The 80-year-old plant officially closed in January 2022, after the Department of Environmental Quality (DEQ) notified the company that it was subject to fines exceeding $200,000 for waste and water quality violations. In the months to follow, the fine grew to over $300,000, according to DEQ.

DEQ and the Environmental Protection Agency are continuing their investigations as they attempt to get Baxter to initiate cleanup. If they are unsuccessful, EPA said it will move forward with cleanup on its own and “seek cost recovery.”

Two class action suits have also been filed by local residents.

COLORADO HARDWARE STORE WINDS DOWN

Walker’s Do It Best, Ignacio, Co., has permanently closed after 31 years of business.

Owners Barbara and Glen Walker added a car wash, High Performance Car & Truck Wash, in 2009, but still could not remain profitable, citing economic shifts and regional competition.

The liquidation sale began June 29 with an invitation-only day for local customers and friends, and was to continue through the end of July, until all inventory, fixtures and equipment were sold. The sale was run with G. Spalding Consulting.

The Walkers, both 81, will upgrade the car wash, while their son, Chris Walker, continues to operate it.

The Walkers purchased Wiseman Hardware in 1992, renaming it Walker’s True Value, moving to a new building in 1999, and switching to Do it Best in 2002.

LP PRODUCTS NOW OFFERED ON AMAZON

Last month, LP Building Solutions began selling products from its LP Structural Solutions portfolio online via Amazon.com.

Products offered include LP Legacy Premium SubFloor Adhesive, LP Legacy Sub-Floor Adhesive Applicator, LP Legacy Polyurethane Foam Cleaner, LP Weather Logic Seam & Flashing Tape, and LP WeatherLogic Seam & Flashing Sealant.

“Time is a precious resource for our community of builders. Offering the option to shop online means they can get back to the jobsite that much faster,” said Chris Dall, product manager, growth & innovation at LP. “We’re here to make builders’ lives better. With this new option to purchase our accessories online in a convenient, accessible and quick way, we’re just living up to that mission.”

GP UNVEILS VIRTUAL JOBSITE TECHNOLOGY

Georgia-Pacific now offers cutting-edge virtual jobsite visit technology through its Technical Services department. The technology, in use since January, enhances the company’s customer support efforts and introduces a new tool the team can use to augment customer experience.

Utilizing a link sent to a customer’s handheld device, members of the GP tech services team can stream through the customer’s device camera to get a view of the jobsite. Once a digital connection has been made, the GP employee is able to annotate the screen, take screen shots, and gain a visual perspective to better facilitate a discussion with the customer.

Using digital connectivity provides real-time access to the customer, which expedites the team’s ability to answer installation questions or help resolve jobsite issues. The virtual jobsite visit technology also facilitates training for new employees in the field.

Tyson Lodge, director of technical services capability, said, “Customers who have opted into this technology solution are impressed with how quickly we’re able to answer their questions and get them back to work.”

CAMERON ASHLEY EXPANDS TO CALIFORNIA

Cameron Ashley Building Products, Greenville, S.C., has opened its first distribution center in California, located in Sacramento. The new location will stock drywall, acoustical ceilings, fiberglass

insulation, residential and commercial spray foam, as well as all the associated accessories for fast delivery to customers’ jobsites and locations.

“Our presence in Sacramento

Ultra-Resistant MDF Roseburg Forest Products’ new Armorite Exterior MDF is a no-added formaldehyde MDF panel treated with a proprietary biocide to resist moisture, rot, decay and insects, including Formosan termites. Engineered for machinability, it reportedly provides the best performance in the market for profiling, cutting and custom designs. It is manufactured from western softwoods to provide superior strength with less weight, ensuring easy nailing, machining and finishing.

comes at a perfect time as the Central Valley market continues to grow rapidly with a need for distributors who can perform a high level of customer service,” said regional sales VP Rob Rutkowski. “We were previously servicing our Sacramento customers from our Reno, Nv., distribution center. We can now increase our level of service by offering same-day and next-day delivery as well as having inventory available for will-call.”

“We are committed to strengthening our relationships in the market and continuing to provide excellent customer service,” said distribution center manager Chris Kizorek. “We are looking forward to immersing ourselves in the local market and being a solid member of the Sacramento community. With the improved efficiencies, our industry-leading digital toolset, and along with our knowledgeable sales team, we are prepared to help our customers Play to Win!”

Cameron Ashley operates more than 50 distribution centers throughout the U.S.

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FIRE WALL HANGERS

Simpson Strong-Tie has introduced a new line of fire wall hangers designed to be installed with a power nailer during framing, saving time before hanging drywall and keeping construction projects on schedule.

The patent-pending DGT and DGHT fire wall hangers are designed for floor-to-wall connections in multistory, multifamily construction. They carry a two-hour fire rating and install quickly and easily to help improve productivity and efficiency on busy multifamily jobsites.

Load rated for fastening with either power-driven or hand-installed nails, the hangers can be attached before drywall installation to speed sequencing of trades on the jobsite. They’re also designed as one-piece connectors with no welding or additional components required, resulting in quicker lead times.

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COST-EFFECTIVE DECK SCREW

Midwest Fastener’s new BuildRight deck screw is a quality yet affordable fastener—reportedly engineered to be the most cost-effective deck screw on the market.

With its exterior coating, type-17 cutting tip, and star drive, it has everything a deck builder needs and nothing they don’t. The exterior coating is recommended for treated lumber and outperforms HDG.

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SLIDING DOOR HARDWARE

Johnson’s easy-to-install sliding wall-mount door hardware can be used in any room of the home to install nearly any type of door panel.

Soft-Close hardware is also available, helping to prevent pinched fingers and door slamming, while the durable extruded aluminum tracks ensure smooth operation and longtime durability.

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STRENGTH UNDER FOOT

AHF Products’ new Armstrong Flooring American Personality PRO Luxury Vinyl Flooring are manufactured in the USA with global and domestic content, and with 100% waterproof planks, plus greater dimensional stability than traditional LVT.

The line features Diamond 10 Technology, which uses cultured diamonds to provide the ultimate in scratch, stain and scuff resistance. Its Bounce Back Core provides superior indent resistance.

Eight designs feature trending wood visuals in both traditional and distressed looks, in an alluring array of colors from neutrals to greys in dark and light wood tones.

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COLD-CLIMATE WINDOWS

Simonton Windows & Doors’ newest energy-efficient glass option—PLUS4 Low-E Glass—is built to prioritize the overall well-being of homeowners, especially those in colder climates.

The windows meet the stringent requirements of Energy Star version 6.0 for the Northern Zone, which encompasses the largest portion of the continental U.S. of any zone, in addition to Alaska.

The glass is offered with the Impressions 9800, Reflections 5500, Reflections 5050, and ProFinish Contractor collections.

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ELITE BLADE

Designed to fit both table saws and miter saws, Diablo Tools’ new Wood Demon Ultimate General Purpose saw blade increases productivity up to 10 times longer versus standard carbide blades by producing high quality, precise cuts with a sandpaper-like finish that requires virtually no rework.

The blade features TiCo Hi-Density Carbide for maximum cutting life and superior performance in cordless saws; Axial Shear Face Grind for effortless, clean application; Double Side Grind tooth design for a “polished-like” cutting effect; and Hi-Alternate Top Bevel tooth geometry for extreme cutting precision.

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METAL NAILER

Paslode’s new Cordless 1-1/2” Positive Placement Metal Connector Nailer features a Positive Placement nose probe, which helps quickly find metal connector holes and drive nails with precision and speed without the need of a hose or compressor.

At only 6.7 lbs., the tool’s light weight and compact design allow for easy use overhead and in tight spaces. Designed to achieve maximum productivity, the fuel cell lasts 800 shots and the battery fully charged lasts around 9,000 nails.

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CONTINUOUS CORNER

Barricade Thermo-Brace Guard is an energy-efficient, structural sheathing that wraps around the corner of a structure, creating a complete enclosure that joins two walls into one continuous unit, while providing structural, WRB and AIB benefits. It stops air leaks and moisture penetration at corners and eliminates the need for corner flashing, saving time and money for builders and homeowners.

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WOOD CARE REFRESH

CUTEK wood care products now feature a cleaner, more cohesive look across all products, providing a more apparent connection between the products, with each one indicating whether it is Step 1: Prepare or Step 2: Protect.

Each Prepare product has its own color theme, but the same set-up and feel as the CUTEK Extreme label. The Prepare box is highlighted and checked, but the Step 2: Protect box is visible, to indicate that these products are all part of a system.

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(844) 442-8835

INLAND PRODUCERS WIN BIG

Inland Lumber Producers Association enjoyed what’s believed to be its strongest turnout in 15 years for its 39th annual golf tournament July 13-14 at the Coeur d’Alene Resort, Coeur d’Alene, Id.

As usual, a highlight was the Day One “Horse Race”

held at the nearby Hayden Lake Country Club. In the event, two-person, low-handicap teams—each sponsored by a different mill—competed in a horse race format, as scores of onlookers (shown above) followed on their heels, many of them wagering on the outcome.

GOLF TIME: [1] Patrick Adams, Jacob Jones, Erick Sykora, Colt Costa. [2] Jennifer & Alan McCollim, John Branstetter. [3] Joseph & Becky Currier

[4] Bob & Carolyn Hoyt, Thiejs Peperkamp. [5] Holly Little, Amy Hoffmann [6] Mackenzie & Bennett Bryson. (Continued on next two pages)

GETTING READY (continued from previous page) for the horse race at the [7] Hayden Lake Country Club. [8] Isabella Flynn, Susie Brittain. [9] Lori Shaffer, John Grove. [10] Brett Bennett, Dennis Buttice. [11] Kevin & Carly Dodds. [12] Jacob Moriniti, Troy Huff, Mark Huff. [13] Tony Geiger, John Lentz, Nicole Dillavou, Anthony Nice. [14] John Berglund, Wade Wheeler. [15] Zack Spohn,

Bobbi Buttice, Leslie Spohn. [16] Lyndsey & Matt Pierce, Greg Martin. [17] Nina & Alex Ford. [18] Kevin Dodds, Aaron & Crystal Fleming, Grant Phillips, Erin & Fritz Klosterman. [19] Erick Sykora, Jim & Brenda Sorensen. [20] Michelle Myers, Jerrett Long, Valerie & Tyrone Konecny. [21] Jason Faulkner, James & Jenny Mortimer. [22] Jared Townsend, Colt Costa (More photos on next page)

LUMBERMEN encountered the world’s only floating, movable island golf green. Coeur d’Alene Resort Golf Course’s 2,200-ton marvel changes position via an intricate, underwater cable system, so that each day the par 3 hole plays anywhere from 90 yards from the ladies’ tee, up to 220 yards from the championship tee. Golfers who missed the island had their balls join the thousands to be fished out of the water by divers each season.

TEEING UP (photos continued from previous pages) [23] Jim Vandegrift, Bill Hetland, David Slaughter. [24] Chad & Molly Collmann, Justin Smith. [25] Steve Culbertson, Tony Pieper. [26] Mark Huff, Dan Green, Troy Huff. [27] Mark Smith, Jenny Torgerson, Amy & Todd Pollard. [28] Leianne & Carter

Stinton. [29] TransPack’s Ron Liebelt with Wildwood Trading’s Kevin & Carly Dodds, Erin Klosterman, Grant Phillips, Jacob Moriniti, Fritz Klosterman. [30] Adam & Emily Benoit.

Photos by The Merchant Magazine

#1 Inventory Management Profit Strategy:

Stock No More Than Needed to Properly Service Demand

This practice is crucial to profitability. Here’s why:

n Every day that excess inventory is owned, it is either costing interest on borrowed money, which increases expense, or it is preventing the earning of interest on owned money, which decreases income. Whether capital is borrowed or owned, excess inventory is always eroding profitability.

n Let’s say a yard has sales volume of 110,000 BF/month. If brought in all at once by car, the inventory can turn once a month if needs are correctly projected. But if metered in by truck in 27,500 BF increments at one load per week as actually needed, that inventory will turn 4 times per month – and tie up only 1/4 as much cash.

n Now suppose this yard pays for the car 10 days after shipment and delivery takes 3 weeks. It paid for 4 times the inventory it needed, and won’t see any of it for 11 more days. But if it buys by truck with quick delivery, every stick could be sold before the invoice even comes due. In fact, three truckloads could be sold this way before the car could even have arrived, again using only 1/4 the capital.

n This strategy dependably multiplies turns and GMROI, dramatically improves cashflow, cuts carrying costs and frees up both capital and space for more profitable use. Margins are maintained through market moves and downside risk is significantly reduced because the inventory is turning faster than price changes can affect its value. There’s less inventory to count, and stock stays fresher, too.

Gerald William “Jerry” Foote, 76, retired salesman for Sunset Moulding Co., Yuba City, Ca., died June 26 in Redding, Ca.

After a brief time working for Brunswick Timber Products, Jerry was drafted into the U.S. Army in 1968 and served in Vietnam. After the war, he returned home and back to the lumber business with Bohemia Forest Products. Jerry worked at Sierra Pacific in Quincy, Ca., as shipping supervisor, later transferring into the lumber sales division in Redding.

From lumber sales, Jerry found his way into the more detailed side of business with the SPI Millwork sales department. Jerry later joined Louisiana-Pacific in Red Bluff, Ca. When LP was sold to Fibreboard, Jerry moved on and in 1995 joined the sales team at Sunset Moulding where he spent 18 years, until retiring in 2013.

Joseph Panfilo Contestabile, 86, founder of Eagle Forest Products, Irving, Tx., died April 12.

Joe earned his degree in marketing from U.C. Berkeley in 1958, while playing quarterback for the Golden Bears. He then began his career in wholesale lumber and injection molding, in sales, marketing and management, with stops in Corvallis, Or.; Fort Bragg, Dominguez Hills, Fullerton and Northridge, Ca.; Charlotte, N.C.; and Irving, where he founded Eagle Forest Products in 1985.

Everrette F. Roberts, 89, longtime vice president and manager of Loveland Lumber, Loveland, Co., died June 14.

Upon graduating from high school in Wheatland, Wy., Everrette joined Bloedorn Lumber Co. and spent the next 49 years managing various lumberyards, including Loveland Lumber from 1965 until his retirement in 1999.

Galen Warren Burkey, founder of Burkey Lumber Co., Lebanon, Or., died July 9 at the age of 83.

Galen spent the majority of his career in lumber sales, beginning at Tomco. He operated his own business, Burkey Lumber, from 1978 until he retired in 2010.

Jon Allen Howard, 79, retired manager of product services for Rosboro Lumber, Springfield, Or., passed away on July 5.

A graduate of Sonoma State College, Jon enjoyed a long career at Rosboro in management.

Richard “Dick” Lynch, former manager of Burkey Lumber Co., in Montrose and Rifle, Co., passed away on July 1. He was 87.

After four years in the U.S. Army in Korea, Dick began his career with Burkey Lumber in Montrose in 1964. He transferred to Rifle in 1979 and retired in 1991.

Richard Dean “Dick” Goering, 82, retired salesman for J.D. Fields Lumber Co., Gardena, Ca., died March 22.

Portland Wholesale Lumber Assn. – Sept. 9, sawmill demonstration, High Desert Museum, Bend, Or.; www.highdesertmuseum.org.

Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

Western Hardwood Association – Aug. 9-11, annual convention, Gearhart, Or.; www.westernhardwood.com.

Morton Loggers’ Annual Jubilee – Aug. 10-13, Morton, Wa.; www. loggersjubilee.com.

Portland Wholesale Lumber Assn. – Aug. 11, sawmill demonstration, High Desert Museum, Bend, Or.; www.highdesertmuseum.org.

Association of Equipment Distributors – Aug. 15-17, leadership conference, Denver, Co.; www.aednet.org.

Mountain States Lumber & Building Material Dealers Association –Aug. 17, annual clay shoot, Colorado Clays Shooting Park, Brighton, Co.; www.mslbmda.org.

The Hardware Conference – Aug. 17-19, Marco Island, Fl.; www. thehardwareconference.com.

Mid-States Distributing – Aug. 18-20, Fall Rendezvous, Phoenix Convention Center, Phoenix, Az.; www.msdist.com.

Tri-County Home & Garden Show – Aug. 18-20, Roebbelen Center, Roseville, Ca.; www.tri-countyhomegardenshow.com.

Forest Products Machinery & Equipment Expo – Aug. 23-25, Music City Center, Nashville, Tn.; www.sfpaexpo.com.

San Diego Fall Home Show – Aug. 26-27, San Diego Convention Center, San Diego, Ca.; www.homeshowsandiego.com.

National Hardwood Lumber Association – Sept. 6-8, intro to hardwood grading course, Memphis, Tn.; www.nhla.com.

BC Wood – Sept. 7-9, Global Buyers Mission, Whistler, B.C.; bcwood.com. Do it Best – Sept. 8-11, fall market, Indianapolis, In.; www.doitbest.com.

Hoo-Hoo International – Sept. 8-11, international convention, hosted by Cowichan Valley Club, Vancouver, B.C.; www.hoohoo.org.

North American Wholesale Lumber Association – Sept. 11-15, Fall Wood Basics Course, Peachtree City, Ga.; www.nawla.org.

True Value – Sept. 13-16, Fall Reunion show, George R. Brown Convention Center, Houston, Tx.; www.truevaluecompany.com.

Orofino Lumberjack Days – Sept. 14-17, Orofino City Park, Orofino, Id.; www.orofinolumberjackdays.org.

Association of Oregon Loggers – Sept. 15-16, fall board meeting & committee event, Cannery Pier Hotel & Spa, Astoria, Or.; www. oregonloggers.org.

American Wood Protection Assn. – Sept. 17-21, fall technical committee meetings, Le Meridien Downtown, Denver, Co.; awpa.com.

Ace Hardware – Sept. 19-21, fall convention, Orange County Convention Center, Orlando, Fl.; www.acehardware.com.

Pacific Logging Congress – Sept. 21-23, Live In-Woods Show, Vail, Wa.; www.pacificloggingconference.org.

Western Roofing Expo – Sept. 23-25, Paris, Las Vegas, Nv.; www. westernroofingexpo.com.

Timber Processing & Energy Expo – Sept. 25-27, Portland Exposition Center, Portland, Or.; www.timberprocessingandenergyexpo.com.

Society of American Foresters – Sept. 26, Forest Products Forum, World Forestry Center, Portland, Or.; www.forestry.org.

Window & Door Manufacturers Association – Oct. 4-5, executive management conference, Cambridge, Ma.; www.wdma.com.

National Hardwood Lumber Association Oct. 4-6, annual convention & show, Omni Hotel, Louisville, Ky.; www.nhla.com.

Black Bart Hoo-Hoo Club – Oct. 6, annual golf tournament, Ukiah Golf Course, Ukiah, Ca.; www.hoohoo181.org.

World Millwork Alliance – Oct. 8-12, convention & show, Indianapolis, In.; www.worldmillworkalliance.com.

FLASHBACK: 1978 AD COPY

FORTY-FIVE YEARS ago, The Merchant Magazine invited Charles Lauber, longtime VP of advertising & promotion for Palmer G. Lewis Co., to offer lumber dealers tips on effective marketing. Conceived for the days before digital and social media, some of his advice no longer applies. Yet his basics are as timeless as ever.

Here are a few evergreen highlights from August of 1978:

Program Your Advertising:

(1) Have a plan and work the plan.

(2) Use available calendars or program sheets.

(3) Project at least 3-6 months ahead for consistency.

What to Spend on Advertising?

(1) Building material dealers are notoriously poor promoters and rate near the bottom in terms of percentage spent for advertising. General rule of thumb is 2% of gross sales, mass

merchandisers go as high as 5%. New stores will go higher until they are established. What to Advertise?

(1) Products that people need and want.

(2) Products that people can install or apply themselves.

(3) Products that you the dealer can make a profit on. They shouldn’t always be materials that you want to sell. If they don’t fit our prospect, they won’t move.

What Makes an Effective Ad?

(1) Ask two questions of an ad, (says an expert):

a. Does my ad include the customer benefits?

b. Does my ad give a reason for buying at my store?

(2) “Red” and “blue” point copy theory:

Western wholesaler Burns Lumber touted its longevity on the front cover of the August 1978 edition of The Merchant

a. Blue points are what product is or what it has, how it works, etc.

b. Red points relate those product features to how it affects the buyer: what it will do for me, family, business, etc. Refers to people, not products.

(3) Ad layout: “A.I.D.A.” formula.

A - Attention. Any successful ad must catch your eye or ear.

I - Interest. Develop elements that pertain to me.

D - Desire. Create a need on the spot.

A - Action. What do you want done: come to the store, mail a card, pick up the phone?

What About Co-op Advertising?

(1) Used properly it is a blessing to the retailer.

(2) Allows dealer more advertising muscle, use of professional ads and total programs.

(3) Manufacturers and suppliers depend on it for sales at the local level; it means inventory turnover.

Product Knowledge: Necessary Part of Profitable Promotion

Lack of product information is the retailer’s most deadly sin. Product knowledge = selling info = dealer sales. This can be solved by asking your suppliers and manufacturers for effective and well-planned product meetings.

FORMER TREATER Valley Wood Preserving, Turlock, Ca., tried to tie into the latest movie blockbuster in its ad.

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