The Merchant Magazine - September 2011

MERCHANT

REDWOOD & CEDAR SALES ANGLES PAINT MATCHING OSB & PLYWOOD FORECAST

The

SEPTEMBER 2011

Magazine

THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

The

MERCHANT

Special Features 8 FEATURE STORY GLOBAL CONCERNS IMPACT POSSIBLE OSB, PLYWOOD REBOUND

11 MARGIN BUILDERS REDWOOD FOR PLANTER BOXES

12 INDUSTRY TRENDS EPDS: CEDAR AMONG FIRST TO RIDE COMING WAVE IN ECO-LABELS

14 MARGIN BUILDERS NEW PAINT MATCHING SYSTEM PERKS UP SOUTHERN CALIFORNIA DEALER

16 PRODUCT SPOTLIGHT SELLING COLOR-MATCHED FASTENERS

40 PHOTO RECAP: LACN 2ND GROWTH 41 PHOTO RECAP: OLD TIMERS BBQ

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In Every Issue 6 TOTALLY RANDOM 18 COMPETITIVE INTELLIGENCE 20 GREEN RETAILING 22 OLSEN ON SALES 26 MOVERS & SHAKERS 30 FAMILY BUSINESS 34 IN MEMORIAM 36 NEW PRODUCTS 42 ASSOCIATION UPDATE 44 CLASSIFIED MARKETPLACE 45 DATE BOOK 46 IDEA FILE 46 ADVERTISERS INDEX

September 2011

Volume 90 Number 3

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TOTALLY Random

By Alan Oakes

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A publication of Cutler Publishing

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

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What now?

HE BEST-LAID PLANS

are often those that fail first. I, like many I suspect, was so incensed by the debacle of the debt limit negotiations that I made it the focus of this month’s column, before leaving for a vacation. The last-minute, cobbled-together debt deal not only failed to attack the issues this country faces, but was, in my humble opinion, government at its worst—frankly, an embarrassment.

About 48 hours later as I landed in Europe, I learned of the downgrading of debt and realized that the stock market would crash come Monday and we would return to the wild swings we witnessed the prior week. Sadly, I was proved right—and then realized I had to rewrite my column.

First, all of us will have our own political opinion and bias and will pass blame on opposing camps. But as if the downgrade was not enough, stock traders and press piled on to create a crisis-a-day panic, centering first on the downgrade, then on Italy defaulting, the French banks going under, the rest of the E.E.C. about to fall into the sea, and finally that it was a Friday and it was raining.

The violent swings managed to wipe out $3 trillion of assets that hurt both business and us as individuals. This, in turn, has created uncertainty that leads to a fear of spending, investing and the possibility of a double-dip recession.

I take great interest in what is going on in Europe. Many countries in the E.E.C. face the same issues as the U.S. In all cases, the government is spending more than it is taking in, and unemployment is too high. There is the chicken and egg. Fewer jobs means less tax revenues and more social costs to help the unemployed, meaning higher spending.

The question I keep asking is, where are the jobs—real jobs—going to come from? Today, we have an official 9.1% unemployment. We all know that’s only half the story; the real number’s likely around 20%. Among those, 44% have been unemployed for over 27 weeks. Many have given up. Others have succumbed to the over-55, never-again-finding-a-job syndrome.

About seven years ago, following my first visit to China, I wrote a column that the West better wake up fast and protect itself. We have been so willing to sell our technology to the East that our traditional manufacturing industries have been decimated. Even when the economy picks up, many of the long- and short-term unemployed will still not find a real job. If they do, it will be often at substantially less pay than what they earned in their last job. Technological advances and changes, along with low- and now medium-skilled manufacturing jobs moving to the east, as well as companies finding these past few years that they can produce more with less people, will mean fewer and fewer manufacturing jobs here, service industry pay levels for all but the highest skilled, and less and less tax revenue. When you have a situation in which 49% of potential tax-payers pay zero payroll taxes, the percentage will only increase over time. This means the tax burden will have to be spread over an ever-shrinking tax-payer pool.

We face a frightening future unless we can find a way to compete with the likes of China. The sad thing is that not only have we allowed this to go on for the last 20 years, but no one seems capable of stopping the rot or willing to halt the migration of jobs. We are losing the fight, and it is clear so is most of the rest of the West.

Alan Oakes, Publisher ajoakes@aol.com

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The Merchant Magazine September 2011

Publisher Alan Oakes ajoakes@aol.com

Publisher Emeritus David Cutler

Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com

Contributing Editors Dwight Curran, Carla Waldemar, James Olsen, Jay Tompt, Mike Dandridge Advertising Sales Manager Chuck Casey ccasey@building-products.com

Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

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Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com

Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com

CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

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FEATURE Story OSB & Plywood Forecast

Global issues influence OSB, plywood rebound

D

in the short term, an increasingly positive global economic outlook will drive the demand for plywood and oriented strand board over the five years from 2011 to 2015, according to business research and forecasting firm BIS Shrapnel.

ESPITE SOME RISKS

OSB 2011

LOUISIANA-PACIFIC, Nashville, Tn., is the largest OSB manufacturer in the U.S., but that fact didn’t shield it from a tough market. On Aug. 25, LP curtailed OSB production at its mill in Dawson Creek, B.C. Fewer than one-quarter of the plant’s 114 workers were retained to operate its TechShield radiant barrier line, and to care for the idled facility and equipment.

Late last year, LP indefinitely mothballed OSB mills in Thomasville, Al., and Chambord, P.Q. “Our results for second quarter (2011) reflect significantly lower OSB pricing and decreased volume of shipments in all product lines compared to the same quarter last year,” said c.e.o. Rick Frost. “Demand continues to be weak.”

He added that the “focus in this product line is low-cost manufacturing, while producing to our customers’ needs.

Additionally, we aim to grow value-added OSB products.”

To this end, LP has added a new width to its FlameBlock fire-rated OSB sheathing line. “In much of the country, 7/16 LP FlameBlock panels are particularly well-suited for roof decks in multifamily buildings with multiple fire walls,” according to OSB marketing manager Judy Musgrove. “The availability of these panels provides a cost-effective way for builders to meet code requirements while also offering design flexibility.”

Outside the U.S., LP South America acquired the remaining 25% equity interest in its joint venture with Masisa S.A.— an eight-year-old OSB plant in Ponta Grossa, Brazil, with an annual production capacity of 390 million sq. ft.

LP South America also owns two OSB mills in Chile with a combined annual capacity of 290 million sq. ft.

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The Merchant Magazine September 2011

BIS Shrapnel forecasts strong growth in the production and consumption of plywood and OSB as the global economy strengthens. The economic upturn will be driven by housing construction, furniture manufacturing, and other sectors where plywood and OSB are used.

BIS Shrapnel says that housing construction in the U.S. is now in the early stages of an upturn and is expected to strengthen considerably from 2011 to 2015.

“Stronger growth in housing construction and economic growth in the United States will be supported by growth in the emerging markets of Asia and South America, which will have a positive impact on Europe and Australasia,” says Bernie Neufield, report author and BIS Shrapnel

OSB 2011

NORBORD, Toronto, Ont., reported OSB sales dropped from $296 million to $241 million in second quarter 2011.

“While I am cautious about North American OSB prices in the face of declining U.S. housing numbers, I am confident that Norbord’s diversified customer base and limited exposure to new home construction will minimize the impact of this uncertain pricing environment,” said c.e.o. Barrie Shineton.

On the plus side, the company’s OSB mill in Cordele, Ga., received a first-place safety award for 2010 from APA.

WEYERHAEUSER, Federal Way, Wa., continues to operate six of its OSB mills in the U.S. and Canada. Its OSB mill in Wawa, Ont., which has been idle since late 2007, is now slated for permanent closure.

“During the first quarter, we continued to make progress in our drive to improve our financial performance despite anemic housing market conditions,” said c.e.o. Dan Fulton.

“We are leveraging our strength in the export markets to take advantage of increased demand from Asia. Even in these challenging economic times, we have continued our commitment to innovation and quality.”

Building-Products.com

Forestry director and senior manager.

“While the recent shocks to the global economy, such as the tragic earthquake and tsunami in Japan, will have a negative impact on the demand for plywood and OSB in the short term, the outlook over the longer term is positive,” continues Neufeld. “There are at least three large plywood plants in the Miyagi prefecture, and the destroyed plants supply an estimated 25% of plywood produced in Japan. This will reduce production capacity in Japan in the face of much stronger demand due to the reconstruction process. Together with a strengthening global economy, the reconstruction effort in Japan will boost demand for plywood and OSB, and will present export and investment opportunities.”

He also notes there has been a rapid change in plywood and OSB markets over the past decade.

“There has been a shift of plywood production from traditional sources such as South Asia, North America, and Europe to China,” says Neufeld. “There has also been a shift of production and consumption of OSB as a cost effective substitute for plywood, from North America to Europe and South America. Over the forecast period China, Eastern European countries, and Russia will emerge

OSB 2011

AINSWORTH, Vancouver, B.C., completed the purchase of the remaining 50% of Footner Forest Products and its OSB facility in High Level, Alb., from Grant Forest Products.

Ainsworth will continue to keep the High Level mill on a care and maintenance basis until market conditions support restarting production, which was indefinitely curtailed in December 2007. The company’s three other OSB mills have been operating at above 90% capacity.

C.e.o. Rick Huff said, “In the first quarter of 2011, we continued a strategic plan that advances our ability to deliver innovative, value-added products, increases the geographic diversity of our sales, and positions the company for longterm growth. As part of this plan, we are targeting growth through key overseas markets, particularly Japan and China.”

According to Robert Fouquet, v.p. of marketing & sales, sales to Japan increased after the March 2011 earthquake and tsunami. “The phone lines in our office in Tokyo started to ring and there was an onslaught of inquiries coming in about buying our OSB, because it disrupted Japan’s plywood mills, with a 30% loss in capacity,” he said. “We reacted immediately by ramping up volumes of Japanese-grade OSB at our mills and met the demand.’’

GEORGIA-PACIFIC, Atlanta, Ga., reports that three of its

six OSB mills continue running. Its mills have been idle in Skippers, Va., since June; in West Hope, W.V., since February, and in Grenada, Ms., since last year.

G-P is spending $30 million to complete construction of a new OSB mill in Clarendon, S.C., which it acquired last May from Grant Forest Products. Also included in the sale were OSB mills in Allendale, S.C., and Englehart, Ont. “We expect it will take most of this year to complete construction on the plant,” said Mark Luetters, president of wood products. “Having now operated an identical plant at Allendale, we believe we will be able to quickly and efficiently begin producing OSB.” Building-Products.com

as significant OSB-producing regions, which will have a major impact on the dynamics of the market.

“In the past decade there has been massive substitution of less expensive and more resource-efficient OSB in place of plywood, especially for sheathing in housing construction in North America,” says Neufeld. “It is unfortunate that many of the OSB facilities in North America were closed as a result of the housing downturn. This would not have happened if producers had aggressively developed export markets as a hedge to downturns in North America.

Over the next five years, producers will need to be more

OSB 2011

HUBER ENGINEERED WOODS, Charlotte, N.C., continues to operate its five OSB mills, while launching a new marketing campaign for its ZIP System OSB wall sheathing that focuses on the energy-efficient performance benefits of the sheathing when installed with ZIP System tape.

“Building performance has become increasingly important to builders due to new energy code requirements and homeowner preferences for energy savings and comfort,” said general manager Charlie Robinson. “You can reduce air leakage by 99% compared to housewrap by taping panel seams with ZIP tape, to reduce air leakage into and out of the home. This helps protect the R-value of insulation, which reduces heating and cooling costs by an average of 10%.”

ROYOMARTIN, Alexandria, La., is moving into its fifth year of operation at its OSB facility in Oakdale, La. “Manufacturing and selling high quality value-added products is an important facet to accomplishing our longer-term operating objectives,” said Terry Secrest, vice president of the OSB unit. “We focus considerable time and energy on manufacturing, marketing, and selling radiant barrier roof panels, Eclipse-Energy Guard wall panels, and WindBrace extended length panels.”

The company’s radiant panel products are available FSC-certified and have earned third-party verification from Reflective Insulation Manufactures Association International.

“Emphasis has been placed on translating the Eclipse radiant barrier product from a singular roof decking application to a wall sheathing application, which replaces traditional housewrap,” said Tony Rocha, senior field sales and business development representative. “Eclipse-Energy Guard is gaining recognition in the market as a housewrap replacement. Builders are saying they save time and money by using Eclipse-Energy Guard panels.”

TOLKO, Vernon, B.C., now offers T-Grade, a new, reengineered OSB flooring for the residential market. The product is the first result of a $3.2 million upgrade to its Meadow Lake OSB facility, which began in the last quarter of 2010 and was completed in March 2011.

“We asked our customers how we could help them be more successful and T-Grade is the result,” said Michael Sivucha, manager of strand-based marketing and sales.

“Builders tell us they’re looking for reliable, versatile products for use in custom, semi-custom, and production homes—TGrade meets their needs.”

LANGBOARD continues to produce OSB products at its plant in Quitman, Ga. September 2011 The Merchant Magazine

9

aware of global developments as the closed facilities are brought back into production.”

While plywood is still a preferred product for many applications on the basis of its quality, other regions will increasingly use OSB as a substitute where cost and resource constraints are a factor. BIS Shrapnel predicts OSB could be the next new product to emerge in China and other Asian countries.

The firm forecasts global consumption of plywood to grow at an average rate of about 5% per year, and OSB at 11% over the five-year forecast period. The rate of growth projected for plywood consumption is higher than the fore-

Lights! Camera! OSB!

Ainsworth has released a series of short, educational videos on working with engineered wood products.

“Today’s builders are certainly knowledgeable, and to some, these tips may come as refreshers,” said Robert Fouquet, vice president of marketing and sales at Ainsworth.

“There’s always value in looking at essential tips that can ensure a successful installation. Our goal is to share some valuable how-to information that can save builders time and money.”

Hosted by John Wagner, a nationally recognized green building expert, the six short videos are designed for all levels, from beginners to seasoned pros.

• The Tightest Floors: Tips for Framing with Rim Board • Solid Subfloors: Tips to Reduce Callbacks • Prepping for Perfection: Underlayment Tips & Techniques • OSB 101: Tips for Successful Wall Sheathing • Rough Openings: Tips to Make Them Accurate Every Time • Stair Master: Tips for Building Stairs Right the First Time The entire series is available online at www. ainsworthengineered.com/tips-videos or on YouTube’s Ainsworth Engineered channel. Smartphone users can also download the videos by scanning QR codes found in Ainsworth print ads.

“Builders and contractors are increasingly using portable technology in the field, and we expect this trend to continue,” said Fouquet. “These videos will be available to viewers on the jobsite—right when and where they’re needed.”

SHORT EWP installation videos are new—and free—from Ainsworth’s website.

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The Merchant Magazine September 2011

casts for production, while the rate of growth for consumption of OSB is lower than forecasts for production. This suggests that there may be an undersupply of plywood and an excess supply of OSB, which will likely result in considerable substitution of OSB in place of plywood.

Production of plywood is projected to increase from 2.5 billion cubic ft. in 2010 to 2.97 billion cubic ft. in 2015, and OSB from 636 million cubic ft. to 989 million cubic ft. respectively, based on current expansion plans and estimated capacity utilization rates. By 2015, North Asia will be producing 54% of the world’s plywood, down marginally from 56% in 2010, and North America will be producing 77% of the OSB. “However, Asia is facing a shortage of forest resources, which will only become more severe over the forecast period, and this will eventually have a negative impact on the production of plywood in the region,” says Neufeld. “As resource supply tightens, there will be an opportunity for producers of resource-efficient engineered wood products, such as OSB, to export to North Asia, or to establish OSB production facilities in that region as a substitute for plywood.

“On the other hand, Russia has a huge potential resource of logs, which have traditionally been exported to North Asia and, to some extent, Europe. This supply will dwindle as Russia implements strategies to add value to its forest resources by taxing the export of logs. This will also present opportunities for establishing plywood and OSB production facilities in Russia with a view to supplying domestic and export markets.”

BIS Shrapnel Forestry is forecasting strong growth in prices as the global economy moves into an upward phase.

Over the five years, from 2011 to 2015, plywood prices are expected to increase by an annual average of between 6% and 8%, and OSB prices between 11% and 12%. The price increases will be driven by much stronger demand in all regions. OSB producers could be caught short when housing construction moves into a stronger upward phase over the forecast period, considering the many plant closures in North America over the past five years.

“Upward pressure on prices is also expected to come from rising input costs as companies voluntarily, or are forced to, shift to more stringent emissions standards,” says Neufeld.

The key plywood importing regions are North America (mainly United States and Mexico), Europe and Australasia. Although Japan and South Korea are net importing countries, China is a major exporter, and North Asia as a region is a net exporter. South Asia is also a major net exporting region, although India and Vietnam are net importers. These patterns are not expected to change significantly over the forecast period, although production in Africa may increase as a result of taxation on the export of logs, which will enhance export capacity.

The increased production of softwood radiata pine plywood in South America and Australasia will have a positive impact on future supply to importing regions. North America has been a small net exporting region of OSB over the past five years, but is expected to revert to a net importer over the forecast period, as the capacity that has been closed will not be brought back into production quickly enough to meet rising demand.

There is also expected to be a shortage in Europe and North Asia, based on BIS Shrapnel’s production and consumption forecasts.

Building-Products.com

MARGIN Builders Redwood Planter Boxes

Planter box promotions grow redwood sales

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Building-Products.com

ture redwood, they help sell more than lumber.

“We recommend our customers put wire across the bottom of their planter boxes to help keep critters out,” says Thom. “It’s also important that they use the right connectors to keep the building process fun. It all adds up.”

Redwood is readily available in sizes popular for building planting boxes. Boxes are often built with 2x12 boards used at full length, and projects can be scaled down depending on the space available or how ambitious homeowners are with their gardens.

California Redwood Association has several easy-to-follow project plans available for free download (www.calredwood.org), including plans for more elegant “Petaluma Planters.”

“Building planter boxes with redwood makes a lot of sense,” Thom notes. “People who want to grow their own vegetables are often interested in sustainability, and choosing a natural product from sustainable forests is a good fit for that lifestyle. Plus, redwood planter boxes look nice and home-grown vegetables taste great!”

Photo courtesy J&W Lumber

OME RETAILERS ARE tapping the locally grown, organic food movement to boost redwood sales.

“More and more people are interested in growing their own vegetables to save money at the grocery store,” says Charmaine Jennings, J&W Lumber, Escondido, Ca. “Planter boxes help them do that and, because redwood is such a naturally durable product and easy to work with, it is great for building planter boxes. Plus, redwood is a renewable, sustainable product, which fits with the green movement.”

Planter boxes make excellent gardening areas, even in yards with limited space. They can be built in an afternoon and are often fun projects for the whole family.

“Our redwood planter box promotion was quite successful,” says David Thom, owner of Bruce Bauer Lumber, Mountain View, Ca. “It was a great way to bring people into our store, and planter boxes are relatively easy to build so they lead to high customer satisfaction. Redwood makes excellent planter boxes because it is naturally durable, so you don’t have to worry about any unwanted chemicals making their way into the soil.”

“We offer customers guidance on how to build the planter boxes,” Thom continues, “and even assemble and deliver boxes for customers who ask.

But fun is where it’s at with planter boxes. They’re great family projects, and you get to watch your food grow.”

While planter box promotions fea-

MARKETING PLANTER BOX projects helps dealers harness the organic gardening craze to drive sales of redwood.

September 2011 The Merchant Magazine

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INDUSTRY Trends

By Jennifer O’Connor, FPInnovations, and Jack Draper, Western Red Cedar Lumber Association

EPDs: The coming wave in eco-labels

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REEN CONSUMERS are getting more sophisticated. Tired of “greenwash” and confused by the hundreds of eco-logos in use worldwide, leading-edge buyers want real evidence of a product’s environmental footprint. This is why North America is beginning to join a wave currently

sweeping through Europe and Asia: a transition from eco-logo certifications to environmental product declarations, or EPDs. Eco-logos serve a useful purpose, by providing a recognizable symbol on a product label indicating that the product meets the environmental cri-

WESTERN RED CEDAR was among the first building materials to look to environmental product declarations to assure buyers of its green bonafides.

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The Merchant Magazine September 2011

teria of a particular program. These programs make it easy for buyers— the logo conveys a seal of approval.

But transparency is sacrificed for simplicity: the details of the program criteria and the product environmental data being examined by the program are not necessarily accessible. The buyer is asked to trust the judgment of those who administer the program.

Comparability is also a problem. A buyer may be considering several competing products, each of which bears a different eco-logo. Which one is best?

EPDs are not as simple as an ecologo, but they provide transparent, credible environmental footprint data in a standardized manner that allows buyers to fairly compare one product to another. The kind of information typically included in an EPD addresses energy consumption, water consumption, global warming, waste, and air emissions, among other common environmental metrics.

Much like the nutrition label on food packages, an EPD simply provides data and makes no judgment about the product. Where a grocery shopper may be concerned about sodium, a building product consumer may be concerned about fossil fuel depletion. With an EPD and a nutrition label, the buyer decides what’s important and the criteria for selection.

An EPD doesn’t tell the whole story about a product—human health issues such as VOCs and forest management assurances, for example, are addressed by well-established certification programs and legislation—but Building-Products.com

an EPD is a complete picture of what is normally meant by the term “environmental footprint.” EPDs are based on life cycle assessment data, which is developed by expert practitioners following international standards. Life cycle assessment (LCA) means that all impacts related to a product are accounted for, from the initial extraction of raw materials through manufacturing, transportation, use, maintenance and final disposition at the end of the useful service life.

There are hundreds of EPDs in circulation globally, for products as diverse as food packaging, consumer goods, and building materials. This is a trend just starting in North America, with only a few EPDs currently produced. Many more are likely to come in the near future, as several industrial groups are currently developing EPDs and EPD standards are underway in the US. One possible market driver for EPDs is the popular green building rating program LEED, with a new experiment in EPDs and LCA. In an effort to motivate more sophistication and rigor in environmental data, the LEED program will reward building projects that include products with validated LCA information or with an EPD. The Western Red Cedar Lumber Association is among the pioneers looking at EPDs as an effective vehicle for meeting buyer interest in better environmental data. In 2009, WRCLA commissioned the Canadian forest products research institute FPInnovations for a life cycle assessment study of cedar decking and siding. The resulting data allowed WRCLA to then work with FPInnovations to create the first North American EPDs for wood products.

– To learn more about western red cedar EPDs and WRCLA, visit www.wrcla.org or call (866) 778-9096.

Building-Products.com

ENVIRONMENTAL PRODUCT DECLARATIONS, such as for western red cedar decking and siding, help purchasers make a more “wholeprocess” decision about what’s really green. A next step might be actual labels or point-of-purchase sheets to market such products’ attributes.

September 2011 The Merchant Magazine

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MARGIN Builders

By Matthew Gryczan

Lumber dealer finds new paint system a perfect match

about 20 years. “A good measuring instrument helps out tremendously to bring back customers. That, and new color chips from Valspar, have steadily increased our paint sales.”

Callaway says do-it-yourselfers and contractors, including termite repair companies, will visit C&E Lumber to obtain custom-milled corbels, beams, fascia and other architectural products for their repair work, and paint matching is often essential to making the sale.

The iVue instrument is made by XRite Inc., Grand Rapids, Mi., a leading designer and manufacturer of color measurement instruments.

“With our old instrument, it might

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HEN CUSTOMERS WALK into C&E Lumber’s retail store in Pomona, Ca., owner Bryan Callaway wants to make sure they have exactly what they were looking for when they walk out—whether it’s a perfect color match for paint or a custom-milled corbel.

Service is a top competitive advantage against the big boxes for C&E, a full-service lumberyard and Orgill hardware retailer that has carved out a niche as a distributor of lodgepole pine products used in everything from landscaping to furniture.

Family owned and operated since 1954, C&E Lumber purchased an iVue instrument last October to offer the latest technology in paint color matching at its 6,000-sq. ft. retail store.

“It made sense to invest in new technology,” says Callaway, 37, who has been in the hardware industry for

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PAINT has been one d-i-y segment that independent dealer C&E Lumber has staked out against big-box competitors.

The Merchant Magazine September 2011

Building-Products.com

VALSPAR samples display is the centerpiece of C&E’s paint center

say that the color match was a couple of pings away—particularly on darker colors,” Callaway says. “A ping may be like a half-shade or shade different from what would be a perfect match.

And one ping may mean the difference of getting the sale or not getting the sale.”

When C&E started using the iVue, “that issue went away entirely,” says Callaway.

There were additional benefits to switching to the iVue. The instrument was easy to learn how to use, which was a big plus for the company’s 12 full- and part-time employees. “It is a lot easier to use than the old system,” Callaway says. “The fact that we can calibrate it on a Monday and not have to worry about it until the following Monday is fantastic as far as timesavings.”

Callaway also gives the instrument high marks for its durability and versatility in measuring large and oddly shaped objects. “I like being able to grab the unit itself and put it right on what we want to measure,” he says.

“With the old instrument, you were limited as to what you could do because it sat on the table. You had to manipulate your sample around the machine. Now, you can manipulate the iVue around the sample.”

The iVue also offers much more precision on targeting a particular test area for color measurement. “With the old instrument, you had to put the sample in a clip and you weren’t sure Building-Products.com

where the instrument was measuring,” Callaway says. “You closed the door and hope that things hadn’t moved.”

With the iVue, a ring of light is projected onto the test surface, so the store associate knows exactly what area is being measured.

“I also like the ability to alter the aperture, so you can adjust it for a smaller sample,” he adds.

Keeping up with the latest developments in the lumber and hardware industry is nothing new to C&E Lumber. Callaway’s grandfather, George Callaway, and partner Jack Russi designed and developed the first lodgepole pine tree stake, now the standard in the landscape industry.

C&E Lumber has distributed lodgepole pine products in Southern California since 1962.

Lodgepole pine stakes have a remarkable variety of uses. In addition to conventional landscaping, contractors and do-it-yourselfers use lodgepole pine stakes for furniture, parking bollards, lighting fixture poles, custom railing and stair banister systems, and fireplace mantles.

“We now have customers for our lodgepole pine products from National City all the way up into Northern California,” Callaway says.

“But we’ve got big-box retailers within 10 miles for regular hardware items. I try to compete on the service side so that when people come in, we can serve them faster than a big-box store can. And when it comes to paint selection, we are getting a lot more women who come in with their husbands now.

“They may not necessarily buy paint then and there, but they are definitely thinking about it. And that may mean return business.”

LODGEPOLE PINE poles, posts, rails and other products have been a longtime niche for C&E. September 2011 The Merchant Magazine

15

PRODUCT Spotlight Color-Matched Fasteners

Selling colormatched fasteners

L

aesthetically seamless surfaces on siding, colormatched fasteners are increasingly being introduced for high-end decking and other building materials.

The Merchant Magazine asked Kim Pohl, marketing manager for Maze Nails, to size up the ins and outs of selling color-matched nails.

The Merchant What are the primary advantages of colormatched fasteners?

Pohl Painted nails to match popular fiber cement sidings, PVC trimboards, cedar and redwood sidings,

done electronically to match specific brands.

Photo by Maze Nails

ONG USED TO CREATE

The Merchant How does the price compare to non-painted nails?

Pohl Painted nails only cost about 20% more than unpainted, so it really is a nominal upcharge considering the overall cost of the project.

LATEST INNOVATIONS in fasteners are polyurethane hammer caps that reduce paint abrasion on colored nails.

16

and metal roofing and siding provide a high quality, finished look to the homeowner.

Maze has been pre-finishing nails to match roll formed metal for the post frame industry for years.

In addition, Maze paints all of the nails for Hardie Colorplus and Certainteed ColorMax fiber cement technology.

The Merchant Mechanically, how are the colors matched?

Pohl All Maze hand-drive nails are completely immersed in the paint drum. With collated sticks and coils, only the heads are painted.

Maze uses a high-quality automotive paint system. Paint matches are

The Merchant Magazine September 2011

The Merchant Are the color-matched fasteners produced in large quantities for dealers to stock, or are they custom-manufactured per job, or...?

Pohl Maze paints and stocks many of the more popular colors. Collated nail applications are painted on a specific job basis.

The Merchant What process does the dealer use to sell, spec and order these products?

Pohl One of the benefits of ordering from Maze is that a lumber dealer can order as little as a 5-lb. box of painted nails to match Hardiplank siding, for example. With collated stick and coils, a dealer can order as little as one carton.

The Merchant Any marketing advice to help dealers sell more of these products?

Pohl For all of the above mentioned popular sidings and trims, promoting and selling painted nails is easy, affordable and logical.

In addition, Maze painted nails are available in both double hot-dipped galvanized and stainless steel for ultimate corrosion-resistance. For handdriven painted nails, hammer caps are available to eliminate paint chipping.

Building-Products.com

COMPETITIVE Intelligence

By Carla Waldemar

Back in business

I

N 1949, LINCOLN TIBBETTS bought Cox Lumber, his first lumberyard.

When he retired, as the largest independent lumber dealer in Florida in 2005, he sold off 28 locations. Nice run. Good timing. Happy golfing.

End of story? No, hang on. We’re just getting to the good part.

A funny thing happened on the way to the old folks’ home. In 2009, as the recession spread through Florida faster than its infamous kudzu weed, Mr. Tibbetts stepped back in. Sixty years after his debut in the lumber business, he repurchased the St. Pete site—calling it Tibbetts Lumber—as an immense, full-service yard on a threeblock stretch the family owned, which had sported a ProBuild store. Then he hired Juan Quesada as president.

Mr. Quesada himself has been in the lumber business for 45 years, so let’s take time out for his backstory. “I joined Cox in 1979, after working for another lumber company through its period of growth and accession.”

When that owner decided to sell, Juan was reviewing his options: stay on with an unknown boss or move along?

A phone call decided his future. “I was contacted by Cox, a local independent we’d competed with,” Juan says. “We respected each other. Their manager took me to dinner”—and you already know the outcome. “They had a very good team, were very supportive, and were geared for growth and expansion—but,” he adds with a pregnant pause to make sure a listener gets the message—“they were also very conservative”—a deal-clincher for someone like Juan, who respected their way of doing business. “They didn’t buy a yard until the previous one was paid off.”

So, let the good times roll—which they did, until “in 2005, at the peak of the boom, Home Depot contacted us—we were not for sale—and made an unsolicited offer. Mr. Tibbetts was in his 80s”—matter of fact, this past

18

summer he turned 87—“so decided it was the right time to exit.” (He kept the Grand Cayman and Tibbetts export business he’d founded, which we’ll hear more about in a minute.)

Following the sale, the recession was growing deeper and deeper, so many of those 28 yards he’d sold shut down.

Which left old customers really, really unhappy. Oh, they didn’t miss the Home Depots that then occupied the space; they longed for the glory days of good service, efficient practices, and promises kept. So all Tibbetts heard was, “Open back up!”

The family listened. But alas, in the flurry of gearing up again, they overlooked one little thing. They failed to let Quesada know. So he walked into Tibbetts’ office to tell him that, because of the shut-downs, he’d accepted another job.

“You can’t do that!” came the response. So—long story short—he stayed on. This time, as president. And the St. Petersburg store reopened as Tibbetts Lumber, the only independent in town (in 1949 when Tibbetts got started, there were 14 competitors).

Next, the Tibbetts family repurchased its former Land O Lakes site, a distribution and manufacturing com-

NOW 87, Cox Lumber founder’s retirement was brief, as Linton Tibbetts bought back several of the yards he sold a few years prior.

The Merchant Magazine September 2011

plex of 100 acres (meaning a return to making trusses and doors) and turned it into a full-service retail center.

“Now we can compete! We’re getting back where we used to be!” Quesada crows—well, only as gustily as his soft-spoken manners will permit.

Next up, Lehigh Acres, another truss, door and rail-line location from the former portfolio. Also Fort Myers.

And the Palm Bay location, sporting the same truss, door and rail amenities, is being readied once again as we speak, expecting a grand opening celebration in early autumn. Plus…

“Plus, we’re looking at 10 or 12 yards for future growth,” Quesada says. “We’ll carry our old footprint.”

And just why did that succeed in the good old days? “We sell service,” Quesada contends, “old-time service.

Lots of specialty work, and a knowledgeable team,” many of whom were former Cox employees, eager to return. “We adhere to the basic principles such as Do what you say you’ll do. Never renege. Be the flagship, be the leader. But”—another pay-attention pause—“make a profit. We’re not apologetic about that; we’re here to do business and people respect that.”

He offers, as example, the kind of story money can’t buy. “At a social gathering in St. Pete last week, a lady asked me, ‘How can you compete with Home Depot?’ Another man stepped up and said, ‘I’ll answer that! At my business, a fire inspector told me I needed fire-retardant doors. So I called Home Depot and was on the phone 25 minutes without an answer.

Then I called Tibbetts, and, within an hour, a sales rep was out; he let me know I also needed fire-retardant hardware and door jambs to be in compliance, so that saved me another hassle. Depot has seen the last of me!”

That’s service. Service also means, according to Quesada, “If there’s a mistake or a problem, you fix it. A customer called because she was havBuilding-Products.com

TIBBETTS LUMBER now includes yards on Grand Cayman Island, in addition to St. Petersburg (top), Land O Lakes, Palm Bay, and Fort Myers (lower), Fl.

ing problems with her windows. She had purchased them elsewhere, but our rep went out and adjusted them. We’ll always send a salesperson to do measurements to get them right rather than have a homeowner just phone them in.”

Extras like those—plus free delivery, take-offs, and estimates for all Tibbetts’ contractor customers (80% to 85% of its trade are pros) and d-i-yers—are backed by expertise.

“They’ve had good training because they’ve worked for us in the past and came over from the competition.”

Why? Because the same philosophy that applies to customers also extends to staff. Or, as Quesada puts it, “fair pay for fair work”—and a chance to advance. “A driver just became a foreman, as we develop our footprint. And I myself didn’t start out as president,” he chuckles.

During those brief “retirement” years, Linton retained his robust export business to the Cayman Islands and Caribbean. Now, in his golden years, he’s ramped it up, too. (One advantage: To do business in the Caymans, you must be a local citizen. And Tibbetts was born there.)

He exports anything and everything, from calico to Cadillacs, but first and foremost, lumber. By the mid-80s, he’d launched a generous retail store: building materials, appliances, furniture, the whole nine yards (still called Cox). It flourished, so he opened a second location that included a truss plant and door shop. He also opened the first cabinet shop on the island (since sold). Today, the island empire consists of the retail store, a contractor warehouse, and a third site to debut any moment. Another reason for its financial success: Only two taxes are levied on the islands—import duties and land transfer. Talk about a friendly business climate!

Not the case in Florida. Opines Quesada: “The economy here will not be quick to turn around—and NASA layoffs are coming, which will be a tremendous setback. Currently, Building-Products.com

we’re doing a lot of business in remodeling projects—purchases of foreclosed houses that need improvements. That keeps us fairly active. But 50% of our business is in new custom homes.”

Still, “the competition’s fierce. Everyone’s trying to survive. We feel blessed because we started up again from zero—so each day is better than the day before. We’re hiring, while other yards are laying off. That helps morale.

“Vendors are glad to see us back, too. I made a mill tour to let them know we were back in business, but I wasn’t looking for special deals. We’re just back in business, with the same philosophy.”

Well, except for one thing, and that’s the Internet.

Tibbetts’ website needs improvement, as Quesada is the first to admit. “I got a call from the Dominican Republic because they couldn’t find what they wanted on our site.

‘You need to fix that,’ they told me. But I’m too old and I’m too busy.” (Possibly another new hire on the horizon?)

As we end our conversation, he takes a moment to confide, “I never give interviews because reporters always get everything wrong and just say what they want to say, anyway. This is the first….”

Okay, then, I’ll just go ahead and say what I want to say: Welcome back! You guys are masters.

Carla Waldemar cwaldemar@comcast.net

WHOLESALE ONLY • MILL DIRECT & LCL

WHERE QUALITY IS AGELESS Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers

CALL SALES AT (800) 400-8383 • (951) 681-4707 Rick Anfinson • Carol O’Connor Outside Sales Darin Curran

(949) 412-1894

Visit our website:

www.anfinson.com

Fontana, CA Office and Mill: 13041 Union Avenue, Fontana, CA 92337 Fax: (951) 681-3566 • E-mail: sales@anfinson.com

September 2011 The Merchant Magazine

19

GREEN Retailing

By Jay Tompt

Hot cities and cool roofs

T

MOST COOL roofs are painted a heat-reflecting white.

HIS SUMMER’S heat waves have been horrendous. Hot weather is known as a silent killer and is responsible for more weather related deaths than tornados, hurricanes, and blizzards combined.

Summer days are hotter than they used to be, setting all kinds of records, but even worse are the hot nights.

Overnight lows are also setting records for high heat, making it much more difficult for at-risk populations, such as the very young and very old, to recover.

In cities, the problem is worsened by something called the Urban Heat Island Effect. Cities are paved with asphalt and built up with concrete and other materials that absorb solar radiation during the day and re-radiate it during the night. Cities can be 15° hotter in the daytime and 22° warmer overnight than nearby suburbs. More city heat means more air conditioning and more electricity consumed, leading to blackouts and, of course, more carbon emitted into the atmosphere.

The heat island effect has been understood for a long time—I first learned about it in high school. But more recent scientific knowledge indicates that we should expect more extreme heat waves like those we experienced this summer. I’ve argued in this column and elsewhere (check out our in-depth report, “The Future of Home Improvement,” at www.williamverde.com) that dealers and distributors have an obligation to learn to anticipate changing climate and weather patterns in order to serve their communities, as well as boost their revenue. In fact, as purveyors of building supplies, we are in a prime position to take the lead on mitigating the effects of hot summer nights and urban heat islands.

20

The Merchant Magazine September 2011

There are a variety of ways we can make our cities cooler, simply and affordably. Replacing high thermal mass materials with trees and green space is one effective strategy and where we need to go, long term. Living roofs are being boosted in major cities for just this reason. But there’s another strategy that can deliver results in the short term, is less expensive, and offers opportunities for most dealers and distributors, right now.

Increasing the ability of surfaces to reflect solar radiation, using special paints and coatings or reflective roofing materials, can dramatically reduce heat gain and electricity demand. A white roof, for example, can reflect almost 90% of the sun’s radiation, reducing interior heat and the need for air conditioning.

And the savings are not trivial. The White Roof Project (www.whiteroofproject.com) reports that about 10% of electricity produced by cities is used to compensate for the urban heat island effect. If enough roofs were painted white, the nation could be saving billions of dollars and hundreds of lives. And dealers could be doing well, while doing good.

Two excellent resources to help you stock appropriate roof coatings for your community, or improve your existing product mix, are Energy Star (www.energystar.gov) and Cool Roof Rating Council (www.coolroofs.org). Keep in mind that reflective shingles and roofing tiles offer effective solutions for residential applications, too.

But don’t stop there. Develop a promotional strategy that combines in-store materials with larger-scale efforts in the community. In-store signage should educate customers, highlight rebate opportunities, and promote city-wide campaigns. Get involved and get your manufacturers involved. Dealers can create their own “white roof projects” in conjunction with local city agencies or nonprofit organizations.

Last but not least, teach your staff about the urban heat island effect and the importance of taking measures to reduce it. It can literally save lives.

Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com

Building-Products.com

OLSEN On Sales

By James Olsen

Quotronics:

The 10 rules of non-closing

Q

– n. 1. The art and science of working for free in a professional, commissioned-based selling environment.

Quotron – n. 1. A person who works in the sales field who confuses quoting prices with selling or closing: I’m at $350, what do ya think?

UOTRONICS

2. A person in the sales field who feels that the customer is inherently more important than they are, resulting in a lack of partnership selling an,d consequently, a lack of partnership treatment, margins, professional life, etc.

3. A lazy salesperson. Prefers to have the customer do all the work: What d’ya need and where do I need to be? <Origin> 1600 Latin quota. The original sense “mark a book with numbers or with marginal references.” Am. Eng. circa 1981 I’m Just a Waitron Unit coined by Nick Bartoli to note the futility of slingin’ hash. Converted to Quotron Unit by

22

The Merchant Magazine September 2011

the author in late 1990s.

The Quotron has 10 rules for nonclosing:

I. Do not act or talk like you will get the business.

The Quotron is embarrassed to be a salesperson and acts like it. This embarrassment infects the customer.

People want to do business with winners and people who are proud of what they do. The Quotron’s attitude of submissiveness and defeat are selffulfilling prophecies.

II. Do not build rapport.

Some Quotrons think that the deal is the thing. They are efficient and work hard, but they only work hard at the business piece. The professional seller creates rapport with their customers. Many become friends, while the Quotron stays uninvolved, quoting prices and hoping they are the cheapest.

III. Do not be thorough in needs analysis (inquiry, RFQ).

Because of indolence or intimidation, Quotrons are not thorough in the needs analysis portion of the sales call (i.e., quantity, shipment, price range).

Detailed questions such as “When will you place the order?” are not asked. This slapdash approach to inquiry gives the Quotron only a vague idea of what the customer really wants, which produces vague results.

IV. Do not ask for the order.

Quotrons do not ask for the order.

They repeatedly give up after the first Building-Products.com

objection. Frequently the customer does not even have to give an objection! The Quotron’s quotronity is so engrained, they don’t even think to ask for the order. The attitude of the Quotron is, “I will give you a price and you decide.”

V. Do not ask for the order more than once.

If we only ask for the order once in closing situations, we will fail in sales.

VI. Do not close on objections.

Objections are a cry for help. If a customer is giving us an objection, they are thinking of a way our proposal will work. What is that way?

Finding out and closing is the master seller’s job!

VII. Ask for the order before need or desire has been established.

“Close Often and Close Early” is an example of a sales myth that really is a myth. Closing is timing. When we try to close before need has been established, it is irritating to the customer and non-productive in general.

We must build rapport, be thorough in needs analysis, and then ask for the order.

VIII. Confuse value statements with closing statements.

Struggling sellers present features

and benefits without closing. Telling the customer how great the product is or how great it will work for them without asking for the order is common amongst those with quotronitis.

IX. Always talk (before the customer) after asking for the order.

When it is the customer’s turn to talk, let them talk. Do not take their turn! It is the customer’s turn to talk after we ask for the order. We will not always get the order if we shut up after asking for it, but, 100%-positivefor-sure, we will not get the order if we talk after asking for it. It also shows enormous insecurity, which will weaken further closing attempts (see rule #5) and negotiations.

X. Answer questions without closing or asking a question in return.

Quotrons are information dispensers. Quotrons see questions as opportunities to serve, while closers see questions as opportunities to serve and close. This difference in attitude and action makes all the difference.

Don’t be a Quotron— close!

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Seneca Buying Swanson Mill

Seneca Sawmill Co., Eugene, Or., has agreed to buy a dimension sawmill in Noti, Or., from Swanson Group, Glendale, Or. Swanson will continue to operate its other facilities in Glendale, Roseburg and Springfield, Or. Seneca Sawmill operates both dimension and stud sawmills at its Eugene complex and manages more than 165,000 acres of timberland in western Oregon.

OSBMarket Transformed into PanelMarkets

LowGradeLumber parent Silvaris Corp., Bellevue, Wa., has launched a new website to sell off-grade panels and industrial OSB. PanelMarkets has the same userfriendly features as Silvaris’ previous Building-Products.com

site, OSBMarket, but greatly expanded selection of grades and manufacturers.

Accessed at panelmarkets.com, the online marketplace focuses on selling furniture grade plywood and OSB, low grade panel products, MDF, particleboard, and other building panels.

It features TrueMarket prices, which means buyers can select products at regionally delivered prices depending on their shipping locations.

According to Kurt Bray, chief executive and president of Silvaris, “PanelMarkets is a great innovation in our industry. Through e-commerce, we are able to help our suppliers sell their hard-to-move products more efficiently, simultaneously delivering cost and availability advantages to our customers. ” September 2011 The Merchant Magazine

23

Moss Lumber Shuts Down

Moss Lumber & Hardware, one of Northern California’s oldest and largest family-owned wood products retailers, filed for Chapter 7 bankruptcy and closed its locations in Chico, Fresno, Red Bluff, and Redding on August 10.

“I knew things were very tight down there, but I had not been notified they were closing,” said Charlie Moss, who was part owner of the business from 1965 to 1989 and from 1995 to 2001. His father, Hollis Moss, founded the company in 1946.

Greg Moss, current president, had

no comment.

The company’s largest creditor, Redding Bank of Commerce, holds a $5 million claim on Moss’ property in Redding, which was put on the market for $2.2 million nearly two years ago, but has not sold.

Hampton Mills Cut Back

At the end of October, Hampton Affiliates, Portland, Or., will trim production from 80 to 50 hours a week at its mills in Randle and Morton, Wa., due to a shortage of affordable logs.

Steve Rika, c.e.o., said that competition from China for raw logs has

raised the price so high that Northwest sawmills can’t buy logs and process them and still make money in a weak housing market. He added that although the increased export demand has been good for local ports, it’s bad news for local mills.

DEALER Briefs

Woodinville Lumber, WoodinWoodinville Construction Services ville, Wa., and subsidiary

shut down Aug. 26 after 41 years, laying off 114.

Traders Building Supply has put its Sandpoint, Id., property up for sale.

South Fork Hardware has opened locations #10 and 11, purchasing the former Stock Building Supply in Preston, Id., and True Value Hardware, Park City, Ut.

3370 Rippey Rd., Loomis, CA 95650 • www.lausmannlumber.com

1-800-626-1233

Remanufacturing & Wholesale Distribution of

WRC • SPF • Pine/ESLP • Ipé • Redwood • WRC FJ Specialty Sidings • FSC Certified Cedar (STK • A/Btr. • VG)

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Proud supplier for Lausmann Lumber

Superior

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Brand siding 100% useable STK Sidings & Trim Exclusively Produced and Distributed by Lausmann Lumber

A Division of

24

The Merchant Magazine September 2011

Parr Lumber, Hillsboro, Or., has Lumbermens Merchandising Corp. joined co-op

In addition, Parr relocated its Fife, Wa., cabinet outlet to a larger, 23,000sq. ft. facility near Tacoma, Wa.

Lowe’s closed its store in Kenai, Ak., as well as six other under-performing stores in the South and East.

Menards bid $5.3 million for a potential store site in Cheyenne, Wy.

Habitat for Humanity opened a new ReStore discount LBM outlet in Fairfield, Ca.

Bear Paw Lumber, Havre, Mt., rolled out its first website, at www.bearpawlumber.net.

PANELCRAFTERS Stocking Distributor of Quality Redwood produced by Agwood

Ace Hardware opened at the end of July on the Eastside of Santa Cruz, Ca. Owner Rodney Hoffer also operates Ace stores on the Westside of Santa Cruz and in Aptos, Ca.

La zy S Lu m b e r

Now distributing PanelCrafters Cedar Knotty Plywood

Anniversaries: Cambridge Lumber , Cambridge, Id., 105th …

Randall Lumber & Hardware, Taos, N.M., 90th … Haida Forest Products , Burnaby, B.C., 60th …

Bear Paw Lumber , Havre, Mt., 35th … RAKS Building Supply, Albuquerque, N.M. 25th …

Building-Products.com

SUPPLIER Briefs

Redwood Empire Sawmills, a division of Pacific States Industries, has opened a value-added operation

into Redding, Ca., specializing in air dried and kiln dried uppers, including dimension lumber, boards, fascia, siding, custom milling patterns, and specialty items.

The company is focused on recapturing marketshare in “areas where redwood is often thought of as a species limited to common grade decking only.”

Welco Lumber Co. USA moved its sales office from

Olympia to Edmonds, Wa.

Freres Lumber, Lyons, Or., suffered a July 30 fire that destroyed one of two 100-ft. fuel silos. The blaze, which apparently started in an auger and conveyor belt system at the top of the silo, remains under investigation.

Mary’s River Lumber Co. has temporarily curtailed production at its Philomath, Or., sawmill. All other operations remain at full production.

Chilkoot Lumber Co., Haines, Ak., was fined $9,500 by the EPA reportedly for improperly storing and failing to repair leaking transformers.

USG Corp. is shuttering its Nevada custom door and frame business by the end of the 3rd quarter.

Capital Lumber will distribute Fiberon’s PVC and composite decking, railing and fencing from its DCs in Woodburn, Or., and Tacoma and Spokane, Wa. International Wood Products, Clackamas, Or., is now distributing Trex decking and railing in Oregon, Washington and Alaska.

LP Building Products introduced LP Wood-E Design 2011.2, in-house design software to create floor, roof and wall designs using LP engineered wood products.

New websites have been launched by AltruWood , Portland, Or., at www.altruwood.com, and by Baldwin Hardware, Lake Forest, Ca., at www.baldwinhardware.com.

INNOVATIVE TIMBER Systems took just five days to construct its new office in Whitefish, Mt., built with imported Smartwoods cross laminated timber. The company hopes to set up its own CSL manufacturing facility in Columbia Falls, Mt. Building-Products.com

September 2011 The Merchant Magazine

25

MOVERS & Shakers Steve Killgore, ex-BuilderLink, has been named v.p. of sales & marketing at Roseburg Forest Products, Roseburg, Or., replacing Korbin Riley, who has left the company.

Mike McCollum, ex-Olympic Panel Products, is now national sales mgr.-engineered wood products, with Bob Berch set to retire at the end of the year.

Bob Mertz, ex-Sierra Pacific Industries, has been named c.e.o. of Mendocino Forest Products Co., Windsor, Ca. Whitney Laruffa, ex-Shelter Forest International, is a new domestic & international hardwood trader at American International Forest Products, Portland, Or. Greg Miller, ex-Petra Industries, has been named IT mgr. for Capital Lumber, Phoenix, Az. John Ray, ex-Snavely Forest Products, is now home center account mgr. and Stewart Hobbs, ex- Snavely, is in charge of EWP design take off.

Dennis Houghton, ex-Arthur Pozzi Co., is new to sales at Enyeart Trading Group, Tigard, Or.

26

Steve Barth, ex-BuilderLink, has joined Richmond International Forest Products, as Denver, Co.based engineered wood product software sales mgr.

Scott Griswold has retired after 16 years in sales with High Cascade Forest, Carson, Wa., and 39 years in the industry.

Dave Frick, ex-Fastenmaster, is a new AZEK specialist covering the greater Los Angeles, Ca., area for Boise Cascade.

Steve Zobrist, ex-D-Stake Mill, has joined Action Wood Products, Turner, Or. David House is now an inside salesperson at Boise Cascadeâ&#x20AC;&#x2122;s DC in Lathrop, Ca. Matt Hays, ex-Todayâ&#x20AC;&#x2122;s Windows & Doors, has joined the millwork sales team at Ganahl Lumber, Buena Park, Ca. Jeff Mancuso, ex-Continental Hardwoods, is the new sales mgr. at Contact Industries, Portland, Or. Kathy Sweeney has been promoted to associate v.p.-human resources at Orchard Supply Hardware, San

The Merchant Magazine September 2011

Jose, Ca. Richard Marano is now associate v.p.-information technology; Mark Bussard, senior v.p.operations, and Michael Ruffino, assistant store mgr., Fresno, Ca. Randy Chan, v.p.-environment & forestry, has retired from Tolko Industries, Vernon, B.C., after 40 years. Bob Fleet, ex-Grant Forest Products is the new v.p.-environment & forestry and Hardy Wentzel, ex-Weyerhaeuser, is now v.p.-sales & marketing.

Barbara Hudson has joined Forest2Market, Charlotte, N.C., leading its recycled fiber practice and driving sales of Market2Mill.

Dorvin Lively has resigned as c.f.o. and executive v.p. at Ace Hardware Corp., Oak Brook, Il. Ben Gann was named director of legislative affairs & grassroots activities for National Lumber & Building Material Dealers Association.

Dennis Mickelson is now West regional sales mgr. for Delta Power Equipment Corp., Anderson, S.C. Pat N. Pending now heads research & development at Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Building-Products.com

Midwest Chain Expanding into Colorado with Sonnyʼs

Sonny’s Ace Home Center, Cañon City, Co., has agreed to be acquired by Knecht Home Centers, Rapid City, S.D., a division of Mead Lumber Co. Sale of the 50-year-old hardware store/lumberyard is expected to be completed by Oct. 1.

Owners Sonny and Nancy Smaller will stay on for several months to help provide a seamless transition.

Mead and Knecht operate 31 lumberyards, hardware stores, truss facilities, and millwork plants in seven midwestern states.

Arizona Waiting for OSB Mill

Arizona Forest Restoration Products, Flagstaff, Az., hopes its quest to obtain a long-term wood contract with the U.S. Forest Service will be successful come this fall. Once it secures the contract, the company will seek funding to build a $300 million OSB mill in Winslow, Az. “We look forward to partnering with the existing northern Arizona logging and processing wood industry to create 600 jobs, boost rural economic development, and reduce the risk of catastrophic wildfires in northern Arizona,” said president and c.e.o.

Pascal Berlioux.

Arizona Forest Restoration has been working on the deal since 2006.

According to Berlioux, “Successful completion of our second round of funding puts us in the best possible situation to complete the full funding of the plant as soon as the wood contract is awarded.”

HONOR ROLLS: Larry Dutra (right), lumber grader at Schmidbauer Lumber Co., Eureka, Ca., was awarded his Certificate of Grading Excellence by Redwood Inspection Service chief inspector Harry Dibble—achieving such honors for 20 consecutive years. Dutra holds RIS certifications in the following grading categories: General Purpose Redwood, All NGR Grades, Shop, Commons, Jamb & Head Stock, Finish, and Posts & Timbers.

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New Anawalt Lumberyard Fills Void in Malibu

The seaside community of Malibu, Ca., once again has its own LBM store: Malibu Hardware & Masonry, which opened on a leased 44,000-acre site in early August.

“It’s kind of a dream,” said owner David Anawalt, a longtime local and veteran of the lumber industry. “I’ve been trying to get a facility here in Malibu ever since Malibu Lumber left in 2005.” His family owns Anawalt Lumber, which opened in 1923 and now operates three locations in the Los Angeles area.

“We are selling a little hardware, nursery, garden redwood, things to make planters out of, building materials, cement, drywall, masonry, and a little bit of lumber,” said Anawalt. “If there’s demand, we’ll bring in more products. The community will dictate what products are required.”

Now open six days a week, the store could eventually open on Sunday if there is a demand for it.

Mill Refocuses on Safety

Plum Creek Timber shut down its plywood plant in Columbia Falls, Mt., for several days in August, after two

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employees were injured within 24 hours.

“While the company was considering taking a short period of downtime at this facility due to market conditions, two recent injuries have prompted us to take this time to review safety procedures to ensure the continued safety of our people,” said Tom Ray, vice president of northwest resources & manufacturing.

“We regularly review our safety program and adjust it as needed,” said communications director Kathy Budinick, who confirmed that both the Aug. 11 and 12 incidents were forklift related.

Jerryʼs Celebrates 50 Years

Jerry’s Home Improvement Center celebrated 50 years of business with special events—sales, raffles and a visit from University of Oregon cheerleaders and mascot—at its two locations in Eugene and Springfield, Or. The business has grown from a single 5,000-sq. ft. store run by founders Jerry and Merle Orem to a pair of 350,000-sq. ft. megamarts staffed with more than 400 employees. Earlier this year, these employees became owners through an ESOP.

The Merchant Magazine September 2011

Standard Structures Exits EWP

Standard Structures Inc., Windsor, Ca., has agreed to sell its I-joist and open-web truss operations to an unnamed engineered wood products manufacturer and will restructure its remaining business around its core glulam product line.

According to c.e.o. Richard Caletti, SSI expected by the end of August to sell equipment, raw materials inventory, and intellectual property.

“I’ve been forced due to extraordinary financial stress associated with the worst recession since the Great Depression to cease Standard Structures’ operations in the engineered wood products business,” Caletti said.

“However, it’s our intention to continue manufacturing glulam—the product line on which my father founded the company more than six decades ago— without interruption.”

SSI temporarily closed its Windsor facility Aug. 19, eliminating 42 jobs.

A number of employees were expected to be rehired by the buyer.

Founded in 1947, SSI fabricates 14 million bd. ft. of glulams annually, as well as 10 million lineal ft. of I-joists and open-web trusses, aimed at the commercial and multi-family markets.

Building-Products.com

Valley Dropping the Lumber

Valley Lumber & Hardware, Mesquite, Nv., is liquidating its retail inventory, to transition from hardware and tools to home décor and specialorder industrials.

Tom Hayes, who owns the store with Mike Egan, said, “We are moving into more of a home décor store, selling carpet, tile, laminate flooring, and paint. We’ll also be selling more ‘in-com’ or industrial/commercial type of products. We can order most anything online through the Do it Best warehouse system and have the products delivered the next day. That way we don’t need to stock as much inventory and pay the overhead costs of that.”

Earlier this year, Valley Lumber downsized from a 30,000 to a 3,000sq. ft. facility and in July it was honored as business of the month by the local Chamber of Commerce.

Vaagen Readying Midway Mill

Vaagen Brothers Lumber, Colville, Wa., expects to start production as early as Oct. 7 at the retooled Boundary Sawmill in Midway, B.C. Boundary is acquiring the facility, idle for three years, from Fox Lumber Sales, Hamilton, Mt., and leasing it to Vaagen.

Being installed is machinery to accommodate smaller logs—an R200 MSA HewSaw with log positioner, three additional log bins, a new merchandising system to cut the logs to length and sort by diameter, and a whole-log chipping system.

“Not a lot of mills specialize in small wood. They think the bigger the wood, the more money there is to make, where (the Midway project) is the exact opposite philosophy,” said Vaagen project manager Mark Deverson. “The smaller the wood, the faster we run it, the more money we make.”

The mill will initially employ about 35 workers, with hopes to add a 20man second shift in June, demand permitting.

Bohnhoff Gunman Sentenced

The man who shot and killed his boss and a fellow employee at Bohnhoff Lumber, Los Angeles, Ca., has been sentenced to life in prison without the possibility of parole.

Saul Gastelum Moreno, 53, shot owner Alan Bohnhoff, 55, and coworker Jaime Sanchez, 31, on May 18, 2009, and then fled from police.

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FAMILY Business

By Stephanie Brun de Pontet and Kent Rhodes

The sibling partnership

T

HE SIBLING PARTNERSHIP stage is widely regarded as the most challenging and intense of the family business generations. While there are business reasons for difficulties at this stage, most challenges siblings encounter stem from emotional issues, which can be more difficult to address than simple business struggles.

The way we are raised as siblings will have a profound effect on how we relate to one another. So while siblings are raised in a similar environment, there are distinct personality differences that complicate sibling relationships. Siblings tend to differentiate from one another to find their own place in the family system. This adds to the diversity of styles and interests that can make reaching consensus and

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working as a team more challenging.

There are many ways sibling upbringing or differences are manifested in a family business, including: • Competition: We have seen many clients where parents pit their children against each other by constantly comparing one to the other (“Why can’t you be a better student like your sister?”) or having them compete and then belittling the “loser” (“Your sales numbers this quarter are so lame it made me think you’d been trained by the competition. Maybe

The Merchant Magazine September 2011

your brother can show you how a true professional works.”). These same parents then wonder why their kids are always at each other’s throats.

Advice to parents: If you are the parents of young children, celebrate their varied skills and interests. Avoid the temptation to compare one to the other. While it can feel harmless and natural to describe one child as the “funny one” and the other as the “smart one,” be mindful that your kids hang on your every word. You can label and limit them from a very young age. And while you should give constructive feedback and acknowledge when your kids don’t measure up, never mock or belittle them— either when small or as adults.

Advice to adult siblings: If you

Building-Products.com

were raised in a competitive household, think about how this may be affecting your relationship with your siblings today and what steps you can take to develop a more collaborative working relationship. It can be hard to collaborate with a person with whom you have always been competing.

Talk with your siblings about how each remembers these facets of your upbringing. Don’t be surprised if each remembers the stories a little differently. The point is to build mutual understanding, not determine the “facts” or to bash mom and dad. You want to build empathy and understanding, and work together to see how this history may sometimes get in your way today.

• Controlling Behavior: Often, business founders have a strong need for control. This is part of what makes them successful in launching a business, but can be a challenge on the path to transitioning management and ownership to their children. Limiting their autonomy in the business can affect how siblings learn to work together to solve problems. When parents make all decisions and retain power as long as possible, the children may never learn to work together on anything of consequence, since all decisions are run through the senior generation.

Advice to parents: Encourage your children to solve their own problems and even work together on projects from as early an age as possible. The sooner siblings get used to relating to one another without parents’ interference, the stronger will be their bond.

Advice to adult siblings: While some parents may be very controlling of the business and not ready to give up authority, find ways to work with your siblings on special projects and on planning for the future. Team up to plan a family vacation or retreat, or make a proposal to your parents about philanthropic pursuits for the family.

While parents may not be ready to turn over the reins anytime soon, siblings can work on things like determining the code of conduct to use to govern their relationships. Determine your decision-making process. Set a shared vision for the future of the business.

• Entitlement: When children have been raised with an attitude of entitlement, all bets are off. Sometimes parents who had to sacrifice so much to build the business will be tempted to buy their children things to replace the attention they have been unable to Building-Products.com

offer. Sometimes parents try to buy their kids’ affection with endless praise for the smallest of accomplishments. The result is often children who have a puffed-up sense of their importance, think things are owed to them, and lack a good work ethic.

Advice to parents: While you do not want to burden your children with your work stress and worries, make sure they understand how much work goes into building a business. They must realize that it takes a team to makes things happen—not just the

owners. Speak regularly of the amazing contributions of key employees, the importance of teamwork, and the fragile nature of reputation.

While you want to celebrate your child’s successes, also recognize when they are not meeting expectations. Tell them that as members of the owning family they should exceed the standard, not slide under the radar. A business is an excellent platform for imbuing children with many valuable life lessons that will serve them well in (Please turn to page 42)

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Big Changes Coming to OSH

After being spun off as an independent company by current parent Sears Holdings, 89-unit Orchard Supply Hardware, San Jose, Ca., will shorten its name to Orchard, open new stores throughout the Bay Area and Southern California, and renovate existing locations.

“Hardware stores should be fun,” said senior v.p. Tom Carey. “Our new

stores will have the feeling of a Saturday morning farmer’s market.”

Orchard hopes the updates will help it compete against big boxes and hardware chain stores. A new “Workbench” section will offer such services as pipe cutting, knife sharpening, and window screen repairs.

Sears bought the 80-year-old chain in 1996.

The Consortium for Research on Renewable Industrial Materials (CORRIM) has embarked on a life cycle assessment (LCA) research project to measure and compare the cradle-to-grave environmental impacts of redwood decking and wood-plastic composite product offerings.

LCA is the most rigorous scientific methodology that can be applied to measuring the environmental impacts of building materials and assemblies.

While the final report is expected later this year, preliminary analysis shows that redwood offers a lower carbon footprint and is more energy-

efficient than manufactured composites.

According to CORRIM, “Preliminary LCA analysis shows that redwood requires less energy to produce than composite decking materials, in part because the energy to grow redwood comes from the sun (a renewable source), whereas much of the energy used to manufacture woodplastic composites comes from fossil fuel sources. Producing redwood decking also emits fewer carbon emissions than manufacturing woodplastic decking. In fact, redwood decking may store more carbon than

Green Nature of Redwood Revealed

is released during its production and therefore provide a net carbon sequestration benefit.”

“Redwood is a sustainable, renewable resource,” says Bob Mion, marketing director for the California Redwood Association, “but its environmental performance has not been well publicized. This in-depth study, conducted by one of the most respected research organizations in the world, should help further the understanding of redwood’s carbon and energy advantages.”

Weyerhaeuser Finalizes Sale of Hardwood Division

Weyerhaeuser Co., Federal Way, Wa., has completed the sale of its Tacoma, Wa.-based hardwoods division to American Industrial Partners for $108 million.

The business will operate out of existing Tacoma offices as Northwest Hardwoods Inc., employing about 1,000 at branches Tuscumbia, Al.; Elkhart, In.; Grand Rapids and Lewiston, Mi.; Brainerd, Mn.; Coos Bay, Eugene and Garibaldi, Or.; Titusville, Pa.; Arlington, Centralia and Longview, Wa., and Dorchester and Onalaska, Wi.

Big Creek Lumber Co. has a long history of practicing superior forest stewardship — growing, selectively harvesting and milling high quality California redwood.

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The Merchant Magazine September 2011

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Forest Service Offers to Rework Timber Contracts

The U.S. Forest Service is offering to renegotiate timber sale contracts with sawmills in the Rocky Mountain region that have been hit hard by the recession, bark beetle infestations, and financially unviable agreements.

“These contracts have been a liability, rather than an asset,” said Jerome Thomas, acting regional forester. He said that the offer will help sawmills in Colorado, South Dakota, Wyoming, and Nebraska, which are needed to help cope with bark beetle infestations that have damaged an estimated 41 million acres in the West.

“By allowing the mutual cancellation of these contracts, the U.S. Forest Service is helping the local economy and promoting a healthy forest management industry,” said Senator Mark Udall. “After they are free from these old contracts, the mills can take dead or hazardous timber that would otherwise go to waste and use it to create jobs.”

Eric Sorenson, president and general manager of Delta Timber, Delta, Co., said that canceling two contracts “will greatly improve our chances of being a viable operation that can still

process beetle-kill timber.”

John Baxter, president of Mountain Valley Lumber, Saguache, Co., said that federal support “ will help keep us alive.”

But not everyone agrees with the plan. “If these contracts go away, how will we get timber into the mill?” said Pat Donovan, financial receiver for the

Intermountain Resources mill in Montrose, Co., which has 50 eligible contracts.

Sloan Shoemaker, vice chairman of Colorado Bark Beetle Cooperative, contends that much of the beetle kill is not economically viable, no matter how many concessions the sawmill industry gets.

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September 2011 The Merchant Magazine

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Boise Cascade Winds Down Historic Idaho Mill Site

Boise Cascade’s laminated beam plant in Emmett, Id., will send out what could be its final shipment this month, possibly ending 94 years of wood production at the site.

The operation will be mothballed and, considering Boise Cascade’s recent acquisition of Filler King’s glulam plant in Homedale, Id., the “unprofitable” Emmett facility may never restart.

“I wouldn’t say it’s impossible, but unfortunately, at this point it looks improbable,” said v.p. John Sahlberg.

The milling complex also boasted a sawmill, which shut down in 1982, and plywood and co-generation plants, which closed in 2001.

Ace Ups Online Recruitment

Ace Hardware Corp. has upgraded myace.com, to provide more information to retailers considering opening an Ace store or converting from another co-op.

“The newly improved myace.com serves as an excellent tool for prospective Ace retailers. It’s very user-friendly, offers helpful content and dramatically conveys in words

and visuals the benefits of becoming an Ace retailer,” said Kane Calamari, v.p. of new business. “The enhanced site reinforces our focus on strategic growth for Ace Hardware.”

As a part of its growth strategy, Ace is on track to open 110 new stores in 2011, with 72 units opened in the first seven months of the year.

Fire, Explosion Rock Sawmill

An explosion during an Aug. 16 fire at Stimson Lumber’s mill in Gaston, Or., sent three firefighters to the hospital with non-life-threatening injuries.

The first fire crews arrived at the mill about 7 p.m., to fight a fire apparently caused by a spark in the dust collection bin. Two hours later, after the explosion occurred, additional crews were called in.

Damages were estimated at $100,000.

IN Memoriam

Paul N. McCracken, 83, cofounder of Tumac Lumber Co., Portland, Or., died July 25 in Portland.

After graduating from the University of Oregon in 1949, he started his lumber career at Willamette Valley Lumber Co, Foster, Or. He later worked for Georgia Pacific and Hallinan Mackin Lumber in Portland.

In 1959, he and William E. McPherson started Tumac Lumber.

The company acquired Disdero Lumber, Portland, in 1976 and established Wood-Lam Structures, Portland, in 1981 and Speciality Wood Products, Aurora, Co., in 1989.

Mr. McCracken also served as president of the North American Wholesale Lumber Association in 1981, and later received NAWLA’s prestigious Mulrooney Award.

William “Bill” Balfrey, 78, cofounder of Big B Lumber Co., Brentwood, Ca., died Aug. 21.

He ran Big B from 1965 until retiring due to health issues in early 2010.

His son, Mark, now serves as president.

Fred Sohn, 96, co-founder of Sun Studs, Sun Veneer, and Lone Rock Timber, Roseburg, Or., died July 22 in Redding, Ct. Mr. Sohn emigrated to the U.S.

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The Merchant Magazine September 2011

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from Germany in 1938. He and his wife, Frances, started Sun Studs in 1950. He became known for electronic innovations in wood products manufacturing technology, as well as workforce productivity and retention.

In 2009, after 60 years in Roseburg, the couple moved to a retirement home in Connecticut.

Jim Decker, 50, Pacific Northwest lumber trader, died July 26.

He began his career at North Pacific, Portland, Or., in 1998, becoming sales manager in 2009. Last year, he moved to Bridgewell Resources, Tigard, Or., as a trader, and in June 2011 joined Plateau Forest Products, Bend, Or. James D. “Jim” Elskamp, 67, retired Pacific Northwest lumberman, died August 5, 2011, in Portland, Or. He spent many years as purchasing agent for Ellingson Lumber Co.,

Baker City, Or., before joining Gold Beach Plywood, Gold Beach, Or. He recently retired from Alaskan Copper & Brass, Portland.

Lloyd Fulford, 87, retired president and owner of Door Distributors Inc., Woodinville, Wa., died Aug. 5 He started his career in outside sales with Georgia-Pacific, before cofounding Door Distributors in Seattle, Wa., with Bill Varitz in 1964. He ran the business for over 38 years, before retiring in 2002.

He also served on the board of the National Sash & Door Jobbers Association (now Association of Millwork Distributors) from 1979 to 1982, and from 1987 to 1990.

Dorothy Deane Herbert Sloan, 89, former co-owner of Sloan Lumber Co., Sandy Gulch, Ca., died Aug. 6 in Angels Camp, Ca. She operated yards in Sandy Gulch

and Toyon, Ca., with her husband, James Sloan.

Donald E. Swisher, 81, former manager of Weedman Lumber Co., Longview, Wa., died Aug. 13.

He joined Weedman in 1958 and retired as manager in 1988.

Richard Wayne Gardner, 84, retired executive vice president of the Lumber Association of Southern California, died July 15 in Palm Beach Gardens, Fl. After graduating from the University of California, Berkeley, he served with the Navy during World War II and the Korean War. In 1993, he was named the association’s Lumberman of the Year. He retired in 1996, after 35 years of service and one year after merging with the Lumber Merchants Association to form the Lumber Association of California & Nevada.

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35

NEW Products

Lightweight Table Saw

A portable table saw from Bosch is light enough for one-handed carrying on jobsites.

The GTS1031’s expandable tabletop meets cutting needs up to 18”. An optional, 14-lb. folding table saw stand is also available. With a 4.0 hp and 5,000 rpm motor, the saw can cut through rough lumber, sheet goods, flooring, stair treads, shelving and trim.

BOSCHTOOLS.COM (877) 267-2499

Pneumatic Stapler

Duo-Fast’s DF150-CS pneumatic stapler can install staples and plastic button caps in a single operation on roofing felt, plastic sheathing, and housewrap.

An in-line magazine with an open-loading design holds up to 240 caps and 110 staples. Users can easily switch between three firing modes: bump, sequential, and staple-only.

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The Merchant Magazine September 2011

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Radiant Barrier Plywood

Radiant barrier structural panels from Timber Products Co. reduce attic temperatures and save energy.

The plywood panels are constructed of domestic fir with no added urea formaldehyde. The pre-applied foil wrap blocks 97% of radiant heat, for attic temperatures up to 30 degrees cooler.

Standard 4’x8’ panels come in thicknesses of 15/32”, 19/32”, and 23/32”.

TIMBERPRODUCTS.COM (800) 547-9520

Patriotic Bricks

Boral Bricks has launched four new brick collections for commercial construction projects.

The Freedom and Liberty collections are traditional commercial brick in a modular style. Freedom offers seven colors (citadel, Manhattan, pebble, regiment, sunset, varsity, wheat), Liberty offers six (battleship, bisque, cannon, freedom, merlot, and slate), and the Main Street collection has 13 colors, including chocolate wirecut, meltone range, red wirecut Bostonian, and select smooth red.

The 17th Century collection has slight irregularities and a softer shape for a historic look. It’s available in a range of colors in both modular and queen sizes.

BORALBRICKS.COM (800) 526-7255

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September 2011 The Merchant Magazine

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Insta-Guardrails

Synthetic Underlay

Safety Makerâ&#x20AC;&#x2122;s ParaShield simplifies installation of a temporary guardrail on short vertical walls.

Uses include concrete block construction, window openings, and vertical parapet walls common to residential and commercial flat roof construction.

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Tam-Shield synthetic underlayment from TAMKO Building Products is protected against the harmful affects of UV rays for up to 180 days.

Offered in 5- and 10-square rolls, the strong, lightweight product is skid and tear resistant.

A light-gray color provides a cooler working surface, compared to traditional black felt.

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Electric Stackers

Mitsubishi had added two new heavy-duty electric walkie straddle stackers for warehousing and stacking applications.

PWT15 and PWT18 models feature an AC-power drive motor and optional electric power steering, for precise control at any speed; auto-shutdown, to save energy and increase run-time, and regenerative braking, to reduce wear on components.

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Portable Spray Pack

Graco’s ProPack portable spray pack has a 1-gallon container that allows longer continuous spraying on one battery charge.

An ergonomic design evenly distributes weight on the back, while adjustable support straps ensure a comfortable fit.

Also included are extra-large storage pockets, easy to read meter, air compressor with 9v battery, and a 5ft. material and drain hose set.

GRACO.COM/CONTRACTOR (800) 345-4109

Finish Nailer

Bostitch’s new 15-gauge finish nailer can be used to install moulding and trim, flooring, and door/window casings.

The N62FNK-2 has a rear exhaust, to direct air away from users and eliminate blowback.

An onboard dust blower can clear work surfaces of dust and debris.

In low-light situations, an integrated LED work light allows for precise fastener placement.

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2ND GROWTH SUMMER FEST Photos by LACN

LUMBER ASSOCIATION of California & Nevada recently held its 2nd Growth summer conference in Rancho Mirage, Ca. [1] Ryan Lauterborn, Barrett Burt, Peter Ganahl. [2] Jean Henning, Dana McDaniel. [3] Gail & Gordon Culbertson. [4] Michael Caputo, Jay McArthur. [5] Scott Kassahn, Scott Walters, Michael Couey. [6] John Neel, Suzanne Hearn. [7] Carol &

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The Merchant Magazine September 2011

Luis Rojas. [8] Danny Sosa, Chrystal Pierre. [9] Jarrett Deschenes, Kristen & Steve Schroeder. [10] Bill Sullivan, Rex Klopfer.

[11] Gerry Perez, Charlene Valine. [12] Frank Bader, Jim Taft. [13] Jack Butler, Doug Radestock, John Allen. [14] Natalie Allen, Pete Ganahl. [15] Maria Kile. [16] Mark Huff, Terry Rasmussen, Mike Carey. [17] Johnny Pringle, Tom Barclay, David & Shelli Abbott. [18] Vicky & Drew Sasser. [19] Alex Garcia. [20] Maggie Hartshorn, Tom Angle. [21] Stacey & Chris Freeman. [22] Joe Allotta.

[23] Dana McDaniel, Jason Sumpter. [24] Jack Berutich. [25] Chris Johnson, Natalie Ma. [26] Adan Torres.

Building-Products.com

OLD TIMERS BBQ Photos by Morgan Creek Forest Products OLD TIME Lumberman’s Club held its 9th annual BBQ July 30 at the restored Sturgeon’s Mill, Sebastopol, Ca. [1] Volunteer mill operators Ron Sturgeon, Don Wagner, Ilya Patrick, Bob Sturgeon. [2] Brian & Mary Pierce. [3] (back) Chester, Georgia & Gene Pietila; (front) John & Clinta Pietila. [4] Lumberman of the Year Cliff Smoot, Gary Malfatti, Betty Foster Borges. [5] Bud Chenowith, Dean Fox. [6] Tom Armstrong. [7] Mike Cameron. [8] Joe Bowman. [9] Sturgeon’s secretary Essie Doty, v.p. Bob Sturgeon, president Harvey Henningsen, Barry & Sylvia Fisher. [10] Beverly Henningsen, Rose Renke. [11] Rich Giaccone, Doug Willis. [12] Julie Snowden, Jim Lewman. [13] Jim Frodsham. [14] Debbie & Don Willard. [15] Randy Apel.

[16] Roxanne & Karl Drexel. [17] Ren Renke. [18] Tim Tanner, Merl Tanner. [19] Dave Damon. [20] Daryl Bond, Kent Bond.

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September 2011 The Merchant Magazine

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ASSOCIATION Update

Lumber Association of California & Nevada’s annual convention is set for Oct. 20-21 at Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca. LACN’s 2nd Growth group has enlisted Jerry Parks, Western Wood

LOS ANGELES Hardwood Lumberman's Club met Aug. 11 at Roscoe’s Famous Deli, Fullerton, Ca. (L-r, front row) Walter Ralston, Charley Fiala, Bill Fitzgerald, Walt Maas. (2nd row) Alan Arbiso, Randy Porter, Jim Gaither,

42

Preservers Institute, to discuss “Pressure Treated Wood for Safe, Reliable, and Durable Wood Construction” at its Oct. 6 meeting at Embassy Suites, Irvine, Ca.

Christa Bohnhoff, Charlie Bohnhoff, Dale Bohannon, Dennis Johnston. (3rd row) Garrison Cox, Marty Fox, Kevin Tranter, Mark Michie, Jim Von Tellrop, Dan Bohannon. (Back row) Steve Ondich, Charlie James, Paul Pendergast.

The Merchant Magazine September 2011

Mountain States Lumber & Building Material Dealers Association’s theme for its Oct. 6-8 fall conference and 120th anniversary celebration at Ameristar Casino, Blackhawk, Co., is “It’s Your Future: Don’t Leave It to Chance.”

Los Angeles Hardwood Lumberman’s Club has scheduled its annual golf tournament for Oct. 5 at Costa Mesa Country Club, Costa Mesa, Ca. Nov. 6 will be a tennis demonstration and tournament at Anaheim Tennis Center, Anaheim, Ca.

North American Wholesale Lumber Association is sponsoring a Sept.

12-15 wood basics course at Oregon State University, Corvallis, Or. NAWLA’s annual Traders Market, Oct. 19-21 at Mirage Resort, Las Vegas, Nv., will include a new products showcase. A networking cocktail reception will be staged poolside and include a look at Seigfried & Roy’s Secret Garden & Dolphin Habitat.

Family Business: Siblings (continued from page 31)

their journey to be a positive and contributing member of society—whether they have an active future in the business or not. Do not shelter your children from hard work or hard choices; you will not be doing them any favors.

Advice to adult siblings: Take honest stock of your work ethic and your willingness to sacrifice for the common good. Whereas your parents had the luxury of making decisions on their own, siblings have to be able to compromise. If one or all of you are not able to make some sacrifices for the good of the whole, joint ownership or management of a business will not be successful. Acknowledge when you need help. Go out of your way to recognize the efforts of others. If you are spoiled, take responsibility for the hard choices of grown-up life, or recognize that you cannot hope to be a successful shared owner of a business.

• Powerful Vision: When the founders are beloved by all, it can be hard for the sibling generation to emerge from their shadow. The more the founders are revered, the harder it is to fill their shoes. And, the harder it may be for the sibling generation to find its own voice and purpose, when any deviation from the parent’s approach is seen as blasphemy.

Advice to parents: While we appreBuilding-Products.com

ciate recognition for our hard work, having the humility to acknowledge the role of luck and the possibility that there may be other paths to success can encourage your children to think outside the box. Be open to change and the new ideas of the younger generation. Do not interpret the appetite for new approaches as a rejection of all you have accomplished. Rather, see

it as a natural evolution and a sign that you enabled your children to think strategically and take risks for the future, just as you did when you were their age.

Advice to siblings: While it is wonderful to hold your parents in high esteem, remember that each generation must examine the business, its (Please turn to page 46)

CHEERS! [1] Specialized Millâ&#x20AC;&#x2122;s Jim & Tracey Gaither hosted the Los Angeles Hardwood Lumbermanâ&#x20AC;&#x2122;s Club at their Yorba Linda, Ca., home July 23 for an afternoon of wine tasting and barbeque. [2] Marty & Randy Porter, Christa Bohnhoff, Kevin Tranter.

[3] Alana & Charley Fiala.

[4] Joyce & Walter Ralston. [5] Sergio Korn, Bill Fitzgerald, Kit Rohm.

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September 2011 The Merchant Magazine

43

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type.

Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline:

HELP WANTED

INSIDE/OUTSIDE SALES: Northern California lumberyard. We are seeking two qualified sales positions: Inside sales: Hardware & lumber counter sales.

Fulltime. Will work with outside sales and others of the distribution team to grow existing customers, create new customers and provide account maintenance. Must have required lumberyard experience in excess of 5 years.

Outside sales: Seeking outside sales representative. This candidate should have comprehensive knowledge of the marketplace and a thorough understanding of the products therein. We are looking for people who can contribute to our growth, who are hungry for success, who bring a winning attitude to their work, and who are interested in new opportunities in an established arena. You provide the skill, knowledge, integrity and perseverance, and we will provide a great place to work, where you will be encouraged to grow. Must have extensive lumberyard knowledge of building materials, lumber, millwork, and decking experience is a plus. Prior related experience selling building materials to contractors (remodel and homebuilders, homeowners, framers, etc.).

If you are interested in joining our team, please forward your resume ATTN: Box 719, to dkoenig@building-products.com, Fax 949-8520231, or The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660.

18th of previous month.

To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660, Fax to 949-852-0231, or send by email to dkoenig@building-products.com. Names of advertisers using a box number cannot be released.

FACILITIES FOR LEASE

SOUTHERN CALIFORNIA RAIL-SERVED Building Materials Distribution & Lumber Milling Facility for Lease: Seven (7) acre rail served building materials distribution and milling facility available in Temple City, Ca. (Los Angeles). This facility is ideal for wholesale building materials distribution or large contractor retail services. Complete with office building, fully operational custom milling equipment, and five (5) carload capacity rail spur served by the Union Pacific. This fully paved facility is turn-key and ready to go.

Please contact Jerry Higman at (714) 848-8222 or jhigman@rwli.net.

OFFICE & WAREHOUSE FOR LEASE: Northern California Sacramento region.

Approximately 2,000-sq. ft. office attached to 30,000-sq. ft. warehouse. Warehouse clear span height 20 ft. Office & restrooms ADA accessible. Warehouse includes three-man doors with large 20-ft. roll-up door. 220V power available.

Fire sprinkler system throughout. Truck shop facilities provided, including minor repair work, oil changes, steam cleaning, etc., at favorable rates. Ample truck parking space in back of facility. Office & 30,000-sq. ft. front warehouse available at .29¢ per sq. ft. If interested, please call Tom Williams, (530) 7422168, between 8 a.m. and 5 p.m.

SITE WANTED

WANTED: LUMBERYARD SITE in North Orange County or Inland Empire. Contact shirley.reel@reellumber.com.

FOR SALE

Keep track of the West

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Now find out what’s happening on the other side of the Rockies.

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covering the Midwest, Southeast and Northeast. Subscribe for $24 for 12 issues.

Contact Heather at (949) 852-1990

Kick-start your 2012 selling season Get the attention of 21,000 lumber buyers across the country.

Ensure your ad message reaches EVERY company attending the 2011 N A W LA T rad ers M arke t by advertising in Traders’ Preview, a Special Supplement appearing with both The Merchant Magazine and sister publication Building Products Digest. For one low price, you receive: • Full national distribution of your ad, packaged with the October 2011 issues of The Merchant and Building Products Digest.

• Expanded directory listing for your company • Distribution at the event • Free clickable online ad for your company (1 month exposure on building-products.com) • Discounted, all-inclusive ad rates:

Call Chuck Casey or Alan Oakes at 949.852.1990 44

The Merchant Magazine September 2011

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DATE Book

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

Willamette Valley Hoo-Hoo Club – Sept. 14, trap shoot, Sportsman’s Club, Creswell, Or.; (541) 688-6675.

Jensen Distribution Services – Sept. 14-16, fall market, Spokane Convention Center, Spokane, Wa.; (800) 234-1321; www.jensenonline.com.

World Forest Institute – Sept. 19-21, “Who Will Own the Forest?” conference; Sept. 22, forest products forum, World Forestry Center, Portland, Or.; wwotf.worldforestry.org.

Pacific Northwest Association of Rail Shippers – Sept. 21-22, fall seminar, Eugene, Or.; (503) 656-4282.

Building Component Manufacturers Conference – Sept. 21-23, Indianapolis, In.; (608) 310-6722; www.bcmcshow.com.

National Hardwood Lumber Association – Sept. 21-24, annual convention, Nashville, Tn.; (800) 933-0318; www.nhla.org.

True Value Co. – Sept. 23-25, fall market, Philadelphia, Pa.; (773) 695-5000; www.truevaluecompany.com.

American Architectural Manufacturers Assn. – Sept. 25-28, fall conference, Palm Springs, Ca.; (847) 303-5664; aamanet.org.

U.S. Green Building Council – Oct. 4-7, Greenbuild conference, Metro Toronto Convention Center, Toronto, Ont.; (800) 7951747; www.usgbc.com.

Los Angeles Hardwood Lumberman’s Club – Oct. 5, golf tournament, Costa Mesa Country Club, Costa Mesa, Ca.; (626) 4458556; www.lahlc.net.

Lumber Association of California & Nevada – Oct. 6, 2nd Growth meeting, Embassy Suites, Irvine, Ca.; (800) 266-4344; www.lumberassociation.org.

Mountain States Lumber & Building Material Dealers Association – Oct. 6-8, fall conference, AmeriStar Casino, Blackhawk, Co.; (800) 365-0919; www.mslbmda.org.

Do It Best Corp. – Oct. 8-10, fall market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

DeckExpo – Oct. 12-14, McCormick Place, Chicago, Il.; (866) 4756495; www.deckexpo.com.

Remodeling Show – Oct. 12-14, McCormick Place, Chicago, Il.; (866) 475-6495; www.remodelingshow.com.

Ace Hardware Corp. – Oct. 15-17, fall market, Colorado Convention Center, Denver, Co.; (630) 990-7662; www.acehardware.com.

North American Wholesale Lumber Association – Oct. 19-21, Traders Market, Mirage Resort & Casino, Las Vegas, Nv.; (800) 527-8258; www.lumber.org.

Lumber Quality Institute – Sept. 26-27, lumber quality & process control seminar; Sept. 28-29, lumber quality leadership seminar, Corvallis, Or.; (800) 678-6311; oregonstate.edu.

Lumber Association of California & Nevada – Oct. 20-21, annual convention, Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca.; (800) 266-4344; www.lumberassociation.org.

Remodeling & Decorating Show – Oct. 1-2, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950; www.thehomeshow.com.

Door & Hardware Institute – Oct. 26-27, annual expo, Javits Convention Center, New York, N.Y.; (703) 222-2010; www.dhi.org.

Black Bart Hoo-Hoo Club – Sept. 30, golf tournament & BBQ, Ukiah Municipal Course, Ukiah, Ca.; (707) 621-0485.

APA-The Engineered Wood Association – Oct. 22-25, annual meeting, Roosevelt Hotel, New Orleans, La.; (253) 565-6600; www.apawood.org.

VAN ARSDALE-HARRIS LUMBER CO. 595 Tunnel Ave., San Francisco, CA 94134 • 415-467-8711 • Fax 415-467-8144

www.vanarsdaleharris.com

Since 1888

Specialists in upper grades of clear, dry softwoods

Douglas Fir C & Better V/G & F/G Kiln Dried Full Sawn Rough • 1", 5/4", 2", 3", 4", 6" & 8x8 • 3x6 DF Select Dex Double T&G Decking Sugar Pine • 4/4 -16/4 C & Btr. • 5/4 & 8/4 D Select • 6/4 & 8/4 Mldg. • 5/4 #1 Shop • 5/4 x 12 #2 Common • 4x4 #2 Common Ponderosa Pine • 4/4 Clears, Moulding, #3 Clear, Commons • 2x4, 2x6, 2x12 Std. & Btr. Dimension Western Red Cedar Clear V/G & F/G Full Sawn Rough • 1", 5/4", 2" Kiln Dried • 3", 4", 6" Air Dried Timbers Alaskan Yellow Cedar C & Btr. Kiln Dried Rough • 4/4, 8/4 Poplar, FAS • 4/4, 5/4, 6/4, 8/4, 12/4 Sitka Spruce B & Btr. V/G Kiln Dried Rough • 4/4, 8/4 Honduras Mahogany, FAS Pattern Grade • 4/4, 5/4, 6/4, 8/4, 10/4, 12/4, 16/4

THUNDERBOLT WOOD TREATING …Quality Wood Treating Services Since 1977 “We Treat Wood Right”…

www.thunderboltwoodtreating.com

Treating Services Only (TSO)

Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA

ACQ • CCA • BORATES D-BLAZE® • ACZA (CHEMONITE®))

Bob Palacioz, sales/marketing mgr. • bob@thunderboltwoodtreating.com (916) 402-3248 • Fax (916) 339-2477

Heat Treating • Drying Services (KD, KDAT) Marine Piling • Staining Service • Rail Siding (BNSF) Coating Serv ice: MFI-SLO8 Marine Grade Spray Polyurea Coating

Marine & Industrial S ales Miguel Gutierrez • miguel@thunderboltwoodtreating.com (209) 747-7773 • Fax (209) 451-0425

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September 2011 The Merchant Magazine

45

Family Business: Siblings (continued from page 43)

future, and the shared purpose you have for it going forward. Your parents may have been extraordinary visionaries, but all visions have a shelf life. The sibling team must develop its own vision to unite them and provide a viable model forward for the company.

Not all siblings will be comfortable with change at the same pace. Some will feel it is too slow; others may resist any change as too fast and unsettling. The process for arriving at agreement on the nature and pace of change is an important part of becoming a cohesive sibling partnership.

– Stephanie Brun de Pontet is a senior associate of the Family Business Consulting Group, Chicago, Il. Contact brundepontet@ efamilybusiness.com or (888) 421-0110. Kent Rhodes is a consultant with the group. Reach him at rhodes@efamilybusiness.com.

Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers

IDEA File

Free seminars

Workshopping Spree

(and complimentary refreshments) are attracting new customers to Eldredge Lumber’s design center in York, Me. The 6,000-sq. ft. space — known as the Atlantic Design Center—features full-size displays of kitchens, baths, and living rooms so customers can envision their own dream projects.

On hand to help are 11 design consultants, including Margareta Claesson, who also handles marketing and advertising for the center. It’s her job to get new customers through the door, so they can see for themselves what products and services are available.

Claesson got the idea for the seminars after she invited Eldredge’s in-house paint expert to deliver a product info talk for the designers. “He was so knowledgeable and such a good speaker that we decided he had to go public,” she says. “So he was our first speaker.”

Eldredge offers six to eight classes each year. In July, artist Pamela Sawin led a seminar on what she calls contemporary gilding, illustrating how to apply metal leaf to glass, pottery, wood, paper, and shells—a natural resource that’s readily available in Maine.

This month, the topic is window replacement, presented by Eldredge’s own Marvin Windows expert.

After learning about the how’s and why’s of window replacement—including energy savings and the 2011 Energy Tax Credits—attendees can schedule an inhome appointment to begin the replacement process.

Claesson says that different topics bring in different customers, but they all enjoy the free refreshments: small tea sandwiches and cookies, plus tea and coffee.

“Whenever possible, we also raise money for a good cause, such as the local food pantry or hospice,” she says. “Sometimes it is a suggested donation and sometimes we have a raffle and sell tickets.”

46

The Merchant Magazine September 2011

ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........42

Ainsworth [www.ainsworthengineered.com] .........................38-39

Anfinson Lumber [www.anfinson.com]........................................19

Bear Forest Products [www.bearfp.com].....................................36

Big Creek Lumber [www.big-creek.com] .....................................32 Cal Coast Wholesale Lumber ........................................................35

California Redwood Association [www.calredwood.org]...........26

California Redwood Co. [californiaredwoodco.com].........Cover II California Timberline [www.caltimberline.com] ............................4 Capital [www.capital-lumber.com]................................................43

EcoVantage [www.ecovantage.com] ..............................................3 Fontana Wholesale Lumber [fontanawholesalelumber.com].....41

GRK Fasteners [www.grkfasteners.com].....................................33 Huff Lumber ....................................................................................31

Humboldt Redwood [www.getredwood.com/merchant].............30

Idaho Forest Group [www.idahoforestgroup.com] .......................5 Keller Lumber .................................................................................43

Lausmann Lumber [www.lausmannlumber.com] .......................24

LP Building Products [www.lpcorp.com].......................................7

Lumber Assn. of California & Nevada [lumberassociation.org] .28

Mary’s River Lumber [www.marysriverlumber.com] ..................34 NAWLA Traders Market [www.nawlatradersmarket.com] .............37

Norman Distribution [www.normandist.com] ..............................35

Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....29

Redwood Empire [www.redwoodemp.com] ........................Cover I Roseburg Forest Products [www.rfpco.com] ..............................21 Royal Pacific Industries .................................................................25

RoyOMartin [www.royomartin.com] ...................................Cover III

Simpson Strong-Tie [www.strongtie.com] ........................Cover IV

Siskiyou Forest Products [siskiyouforestproducts.com]...........27

Sunbelt [www.sunbeltracks.com] .................................................33

Swanson Group Sales [www.swansongroupinc.com]................17 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....45

Universal Forest Products [www.ufpi.com] .................................13 Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net] ....45 Western Red Cedar Lumber Association [www.wrcla.org]...22-23

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