Merchant Sept. 2013

TOPS IN OSB  SELLING REDWOOD & CEDAR  UMPQUA VALLEY RECAP

The

MERCHANT

SEPTEMBER 2013

Magazine

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

The

MERCHANT

Special Features

September 2013

Volume 92  Number 3

Magazine

In Every Issue

8 FEATURE STORY

ENSURE OSB QUALITY WITH PROPER STORAGE, HANDLING

9 INDUSTRY TRENDS

OSB PRODUCERS REBOUND IN 2013

10 PRODUCT SPOTLIGHT

REDWOOD SUPPORTS DECK BUYERS’ DREAMS OF GREENER FUTURE

12 MARGIN BUILDERS

NEW CEDAR SALES TOOLS FOR DEALERS

14 COMPANY PROFILE

NEW NAME FOR SUNBELT

16 COMPETITIVE INTELLIGENCE

BANKING ON RECYCLED WOOD

40 PHOTO RECAP: UMPQUA EVENT

6 TOTALLY RANDOM 18 OLSEN ON SALES 30 MOVERS & SHAKERS 32 FAMILY BUSINESS 34 KAHLE ON SALES 36 NEW PRODUCTS 43 ASSOCIATION UPDATE 44 IN MEMORIAM 44 CLASSIFIED MARKETPLACE 45 DATE BOOK 46 IDEA FILE 46 ADVERTISERS INDEX TREATERS

Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & DIGITAL EDITION BUILDING-PRODUCTS.COM

FOLLOW ON TWITTER

TWITTER.COM/BLDGPRODUCTS

CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below.

POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872.

The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2013 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected FSC Certified SCS-COC-002513

909-350-1214

15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – sales@fontanawholesalelumber.com

www.fontanawholesalelumber.com

4



The Merchant Magazine



September 2013

Building-Products.com

TOTALLY Random

By Alan Oakes

The

MERCHANT

Magazine

www.building-products.com

A publication of Cutler Publishing

Who’s watching you?

I

F THE SNOWDEN CASE has emphasized anything, it’s that nowadays we are under constant surveillance—and not just by the government. Your smartphone and tablet are constantly asking if they can push this app or that app based on your location.

Today, they know where you are, what you are doing, what you are buying, and worse, if someone hacks into your personal files and tries to do harm. Look, they know where your phone is even when you don’t! Today, they can even tell, if you are in, say, a Macy’s, what departments you visited. Hopefully, they can’t also see you in the 360˚ mirror!

It is amazing how technology, as it changes at an ever-increasing pace, can overwhelm you even more than it helps you. You cannot seem to escape phones ringing nonstop, dings from your inbox, or kids playing games or watching videos.

I recently went out of the country and within six hours, despite having an international data plan, somehow managed to spend $1,100 on downloading my emails and visiting a few websites before being cut off. It has taken me four weeks, six calls, three emails, and a visit to the local store to get the charges removed—long story! Just as well, as after two weeks I would have had to take a bank loan to pay AT&T. At a business level, I cannot imagine working without the great benefits technology has brought us. But there are times I just want to scream, “Enough!” I suspect we are starting to move backwards due to the overuse of technology. How much time do I waste daily sorting through upwards of 500 emails, particularly as the scammers become more and more sophisticated. I think Nigeria must have university degrees in scamming and spamming.

The web is a source of great information—and an awful lot of garbage, too. And, there seems to be an insatiable appetite to read about nonsense! The rush to get stuff up on the Net has led to completely fabricated stories and pure and utter journalistic drivel written by unpaid interns. This is what you get when you do not want to pay for anything of value.

I know I have readers embedded and invested with Twitter, Facebook, LinkedIn and their lookalikes. The problem is that there are some people I just may not want to be in contact with. Yet here is LinkedIn and others telling me people who I might know and, no doubt, telling them about me. If I don’t invite them, what message is that saying? Who is poring over my site, determining I must be lonely and in need of more friends or asking why I haven’t tweeted lately? Are they missing my prose?

What about losing 500 points in the stock market in 20 minutes, while I’m blissfully singing to my car radio, due to electronic trading programs that kick in? Who do they benefit? How about being on Candid Camera as you drive through toll booths or walk down the street? Does this mean I have to dress up and not look like a slob now?

At home, despite being told I need only one remote, I, of course, need three. And, the combination of getting sound, cable and programming at the same time seems to be beyond me.

Last week, while simply looking at mortgage rates on a website, I clicked to the next page and—lo and behold—30 seconds later I was getting a phone call to see if they could be of service. It was a company I had spoken with in the past, but that is just plain spooky!

How about those emails about your boss to your best friend? Do you realize that someone in IT may be chuckling over you calling your boss an idiot, as they forward your comments to HR? I read recently that Facebook’s former head of security is now at the NSA—yes, the agency that has been monitoring your digital usage for years. Read how much data Apple and Microsoft are being told to hand over to the NSA. If Facebook can garner our most intimate details, how much the government knows about our political views, medical data, and the sites we visit is getting out of control.

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

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 James Olsen Carla Waldemar 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

How to Advertise

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

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.

SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping

Alan Oakes, Publisher ajoakes@aol.com

6



The Merchant Magazine



September 2013

Building-Products.com

FEATURE Story

By Alex Kuchar, Weyerhaeuser

Ensure OSB quality with proper storage, handling

O

RIENTED STRAND BOARD is durable, reliable, and long lasting. But like all wood products, if left exposed to weather for extended periods of time, OSB is susceptible to expansion and contraction associated with moisture absorption and drying.

Wood that expands and contracts will change dimensions.

In addition, wood strands on unprotected surfaces of OSB may become raised, which is aesthetically displeasing though not a structural deficiency.

OSB is resilient enough for exposure during a normal cycle of construction, but should be protected during storage to ensure it doesn’t weath-

er prior to installation. Follow these tips to keep panels unblemished during storage and delivery:

At the Yard

• Keep OSB under cover in a completely enclosed warehouse, if possible, but at minimum under roof cover.

• Store OSB panels in a flat orientation.

• Keep side covers in place to protect tongue-and-groove edges.

In Transit

• OSB transported on open flatbed trucks should be covered with a weatherproof tarp.

• Handle panels in a flat orientation. Protect edges and ends from damage and keep the load level.

• When moving OSB with a forklift, stack on a bunk or a pallet and insert the forklift tines in between the supports, not into the panel or sheathing stack. Be sure to get the tines under the load to avoid spearing it and damaging it.

• Unload the pallet of OSB all at once with a forklift; if the stack is unstrapped and the truck jerks forward, panels could fall and ends could be damaged.

At the Jobsite

• Schedule shipments to ensure OSB isn’t exposed to weather on site for long periods of time.

STORE OSB panels undercover at the yard.

8



The Merchant Magazine



(Photo by Weyerhaeuser) September 2013Building-Products.com

• Do not store panels in direct contact with the ground or mud. Store

OSB elevated on three 4x4s, one in the center and the others 12 inches from each end. This will keep the wood off the wet ground, as well as allow for ventilation.

• For flooring panels, wait to remove cardboard side covers until ready to install, to protect the tongueand-groove edges.

• Minimize moisture exposure for OSB panels and all wood framing in the home by getting the home roofed and wrapped in a timely manner.

Following these simple steps, in conjunction with proper 1/8-inch panel gapping and good construction practices, can help ensure your OSB

sheathing and flooring installs accurately, smoothly and beautifully.

For additional strategies and advice, contact your manufacturer’s representative.

– Alex Kuchar is OSB technical manager for Weyerhaeuser Wood Products.

OSB 2013

LOUISIANA PACIFIC, Nashville, Tn., added additional shifts at several of its seven mills and produced 3.7 billion sq. ft. of OSB last year—22% of the North American market.

“Housing starts appear to have been constrained by weather, labor and financing issues in the second quarter,” said c.e.o. Curt Stevens. “The consensus projection for housing starts for this year is a 25% increase over 2012, with starts projected to increase at least another 25% in 2014. We will be ready to respond.”

Late last year, the company began re-hiring at its mill in Thomasville, Al., which has been shuttered since late 2010. In May, LP completed the purchase of Canfor’s 50% share in the Peace Valley OSB mill in Fort St. John, B.C., which has an annual production capacity of 820 million sq. ft.

NORBORD, Toronto, Ont., invested about $10 million this year to restart its mill in Jefferson, Tx., which was shut down indefinitely in early 2009. The mill should resume production in the fourth quarter, depending on market conditions.

The company also operates 11 other OSB mills.

“Although prices were expected to adjust after reaching record levels in the first quarter, I was surprised by the degree of the correction,” said c.e.o Barrie Shineton. “OSB prices are now recovering, and I believe this trend will continue as the fundamentals supporting U.S. new home construction remain very strong.”

WEYERHAEUSER, Federal Way, Wa., continues to operate six OSB mills in the U.S. and Canada.

“Our priority is to continue safely making money by pushing for continuous operational improvement, managing cost, and responding quickly to market opportunities,” said c.e.o. Dan Fulton. “While we certainly welcome a stronger housing market, we are not waiting for it or relying on it for our success.”

AINSWORTH ENGINEERED, Vancouver, B.C., has been operating three OSB mills and is looking forward to reopening its mill in High Level, Alb., later this year. The mill was indefinitely curtailed five years ago.

“We feel confident that the market will require additional supply in the months and years ahead,” said c.e.o. Jim Lake.

“We are preparing to meet that demand with the restart of our High Level mill.”

He also noted that Japan continues to be a key export country for Ainsworth, as shipments there increased 29% over last year.

GEORGIA-PACIFIC, Atlanta, Ga., celebrated the startup of its mill in Clarendon, S.C., which it acquired from Grant Forest Products in 2010.

Building-Products.com

“South Carolina is a major part of our focus on growing our building products business,” said c.e.o. Jim Hannan. “The investment in our Clarendon County facility makes us wellpositioned to grow with our customers as the housing market continues its slow recovery.”

The mill was part of a $400-million acquisition that included Grant’s plants in Allendale County, S.C., and Englehart, Ontario. GP then spent an additional $30 million to complete construction on the Clarendon facility in 2011.

G-P operates three additional OSB mills—two in Virginia and one in West Virginia.

HUBER ENGINEERED WOOD, Charlotte, N.C., recently introduced a new OSB product: ZIP System longlength panels.

The company claims that the new product combines the superior moisture protection of regular ZIP System sheathing with the easy installment of 10- to 12-ft. panels. Developed specifically to help builders meet evolving energy codes, the sheathing has built-in laminated exterior foam panel insulation, eliminating the need for additional housewrap.

Huber operates five OSB mills.

ROYOMARTIN, Alexandria, La., is celebrating its 90th year of business and its moving into its 6th year of operation at its flagship OSB facility in Oakdale, La. “Our OSB business continues to make significant strides forward in safety, customer satisfaction, and productivity every year,” said Terry Secrest, v.p. of OSB. “Our entire team is fully engaged and committed to being world class in all we do.”

From July 2012 to June 2013, the mill produced 743 million sq. ft. of OSB. A new shift was also added, to keep up with demand for the company’s Eclipse radiant barrier OSB panels and other value-added products.

In June, the company won the 2012 Innovation in Safety award from APA-The Engineered Wood Association. The award was given for the mill’s “Safety Mentor Program,” which introduces new hires to the company’s rigorous safety culture.

TOLKO, Vernon, B.C., is proceeding with preparations to reopen its fifth OSB mill, in Slave Lake, Ab., which was curtailed indefinitely in early 2009. The mill is expected to resume production by the first quarter of 2014.

“Before we could commit to the significant financial and human resource investment required to restart the mill, we had to determine that current improvements in market conditions are sustainable,” said c.e.o. Brad Thorlakson. “We are confident about the future of the industry and look forward to positive years ahead.”

September 2013



The Merchant Magazine



9

PRODUCT Spotlight

By Charlie Jourdain, California Redwood Association

Survey says:

Redwood decks support buyers’ dreams of greener future

F

OR MANY HOMEOWNERS, the deck is a promise of quality time spent enjoying the home and garden that represents their dreams.

A recent survey commissioned by the California Redwood Association showed that decks can also help homeowners express their environmental values. While people love decks for both enjoying their outdoor space and boosting their home’s value, they want to make sure the products used to make those decks won’t harm the environment.

This reflects the trend CRA has observed for years now, with homeowners wanting to minimize their impact on the environment. The survey of California homeowners

RECENT SURVEY showed that the vast majority of homeowners demand their decks be eco-friendly.

Photo by CRA

10



The Merchant Magazine



September 2013

showed that three-quarters of them believe that it’s important for their deck to be eco-friendly. That’s probably why more than 90% said they believe a deck should be recycled or reused after its useful life and not wind up in a landfill.

Which is why it’s more important than ever to make sure consumers have access to information that can help them make the best decision to fit their environmental values.

It’s no surprise that California homeowners would have an eye on sustainability when it comes to choosing their decking. That made CRA curious to know how they rate the current decking products available. When CRA asked them to rank-order a variety of decking materials, they put redwood at the top of the most eco-friendly deck building materials. They admired not only its environmental qualities, but also the natural beauty and warmth of redwood decking.

The results from this survey were enlightening: they prove not only that consumers are continuing to educate themselves about the kind of products they use in their homes, but also that some of the marketing messages from some composite/plastic deck product manufacturers aren’t holding up to the test of time.

When CRA commissioned a Life Cycle Assessment to compare the environmental qualities of composite/plastic decking and redwood decking side-by-side, it turns out that making composite/plastic decks out of old plastic is not that green after all.

Redwood is a renewable resource. Responsibly harvesting redwood trees is an essential part of sustainable forest management.

Redwood lumber is biodegradable; it goes back to the earth to help make more trees. The redwood forests of Northern California, a vital part of our ecosystem, are managed carefully to ensure that our forests will remain healthy, beautiful and productive for generations to come.

That means responsible harvesting at sustainable levels, as well as the protection of old growth stands and natural habits. CRA takes pride that 100% of CRA member-owned timberlands are certified as well managed and sustainable Building-Products.com

by the Forest Stewardship Council.

Plastic, by stark contrast, is a petroleum product.

Making composite/plastic decks depletes the world’s oil reserves. Once made, it often has only one final destination‌ the landfill. Making composite/plastic lumber out of recycled plastic only delays the inevitable and consumes precious, nonrenewable resources to bring the product to market.

Any time a homeowner is considering a deck for their home, they’re not just measuring the physical footprint, calculating how much of their yard to dedicate to this space.

They’re also measuring the environmental footprint of that deck to minimize the environmental footprint the deck will leave behind.

CRA can help them find the most accurate measuring guides that will make them confident in their decision to find the best materials available from Mother Nature. – Charlie Jourdain is president of the California Redwood Association, one of the oldest trade associations in the lumber

industry, focused on promoting redwood products and educating builders and consumers on the advantages of using redwood.

Reach him at charlie@calredwood.org or (888) CAL-REDWOOD.

As Seen on TV Promoting natural redwood to California homeowners presented a unique opportunity to have a little fun, while setting the record straight about Real Strong Redwood.

In collaboration with Humboldt County, CRA launched a series of 30-second television ads comparing redwood to man-made composites and plastic decking.

While the tone is light and fun, the ads point out the differences between composites and redwood, promoting the positive aspects of using redwood for decking.

The ads, which have been aired throughout California, have grown popular online as well. The advertisements can be seen at realstrongredwood.com.

FFOR OR THE “ “WOW�

WOW� FFACTOR! ACTOR! YOUR ONE STOP SOURCE Western Woods has been supplying premium quality lumber for decking, fencing, siding and trim since 1971, but /./- ,+*- )(+'- &%$#%"(- &++/$- +!%"$- "% $# .(.( "% $# .(.( - * %"- '.# - * %"/% ) - % #%".+"- '++/$# .(- +'$- +"- .($# (#- .($# +(- (/- # %- %$# *% - * %"/% ) $-/*" %- (/- +( - $ ( -+. - (.$ "+#% #$-% #%".+"-'++/- (/-$# (/$-* -#+-% #"% %- . #%$ - *$#+ %"$ + %-# %- +*$- * %"/% )- ++)- (/- +(#" #+"$- + %-(+- - )$ Choose your wood, choose your stain color, color, success!

Partners Partners in QualityQuality-'%$#%"('++/$.( + - - - -$* %"/% ) + - -

Building-Products.com

September 2013

ď Ž

The Merchant Magazine

ď Ž

11

MARGIN Builders Western Red Cedar

New cedar sales tools for dealers, distributors

A

U.S. CONSTRUCTION industry hits stride, building materials suppliers have enjoyed increased demand for appearance products aimed at the R&R market, in particuS THE

INVITING home page welcomes visitors to RealCedar.com.

(Photos by Western Red Cedar Lumber Association)

12



The Merchant Magazine



September 2013

lar for use in outdoor applications.

One organization that’s making the most of capitalizing on the market upswing is the Western Red Cedar Lumber Association, a non-profit association representing quality western red cedar suppliers in Canada and the U.S. A central component in the WRCLA’s strategy to boost the volume of Real Cedar-branded products is a new and extremely robust website, slated to go live in early September.

While a strong online presence is the now par for the course, what makes RealCedar.com unique is that it’s designed not only to guide consumers through the purchase decision, but also to connect dealers and distributors more closely with the sales process.

Additionally—and what will be of particular interest to retailers—the site also provides them with the tools to help close the deal.

As with any venture designed to get results, planning and preparation was the first step.

“From the beginning, our plan was to build a seamless, simple path for the consumer to buy Real Cedar-branded western red cedar,” said WRCLA managing director Jack Draper. “But we also recognized that our members are key players in the process, and by engaging them early we knew we’d get greater results.”

Western Red Cedar Lumber Association members include manufacturers, certified cedar distributors (CCDs) and service affiliates who pay an annual fee to the association.

“The advantages for the retailer and the distributor become quite pronounced once you see how the site works,” noted Draper. “It isn’t a static site of generalized free information for visitors, but rather a targeted e-commerce tool for our members that monetizes their investment.”

The site meets the needs of four audiences: do-it-yourselfers, architects and builders, industry members, and influencers (bloggers, editors, and media related parties).

It recognizes the differences between these audiences and tailors a path through the buying life cycle accordingly. An end consumer, for example, can be guided through a qualifying process that provides information on ideas, plan downloads, building and maintenance information, and then leads them directly to the nearest certified cedar disBuilding-Products.com

ARCHITECT KNOTTY grade 5/4"x6" western red cedar decking.

tributor-defined retail network.

WRCLA service affiliate retailers obviously benefit from the flow of traffic from the site, and the addition of Real Cedar branded products and information keep the consumer engaged at the retail level. The dealer also has full use of the site’s imagery, video, building ideas and plans, as well as staff training and access to industry experts and resources.

Certified distributors also have a presence on the site, and while they don’t sell directly to the end consumer, the visibility and association pay off.

“We’ve had numerous occasions where a discriminating buyer, designer or architect seeks a distributor directly looking for a particular product,” said Paul Mackie, a WRCLA architectural advisor. “Rather than have that potential buyer re-directed to just any non-member retailer, we have the channels and expertise in place to guide them through our retail network and turn that into a sale.”

Traffic to the site is directed through traditional advertising, events, sponsorship and PR, and social media. RealCedar.com functions as a social media conduit with content being generated and managed in conjunction with other media initiatives and outreach, and tweeted and posted on Facebook on a regular basis. The site is also linked via trendBuilding-Products.com

setting sites such as Houzz and Pinterest, sites from which the consumer can easily access the

WRCLA’s site for more building or finishing ideas.

With traffic from the WRCLA’s previous network of sites aggregated and re-directed to the new one, and fuelled by a promotional and regionally targeted advertising campaign, RealCedar.com boasts over 250,000 unique visitors a month—an impressive number that bodes well for sales.

That number is expected to grow as more organic traffic builds.

True to the slogan, “Membership has its privileges,” WRCLA members reap the benefits of this high-traffic hub featuring a search engine optimization (the process of ranking the website higher on search engines), new media networks, both online and offline marketing, and a re-invigorated Real Cedar brand.

“We’re building a real presence for our manufacturers, distributors and dealers,” said Draper. “When everyone has the tools to work together, you reach your goals that much more quickly.”

To learn more about the new site and strategy, join the WRCLA-hosted session Oct. 25 at NAWLA’s Traders Market in Las Vegas, Nv.

Distributed by

• (541) 535-3465 • www.normandist.com Superior Service, Products & Support

P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288

September 2013



The Merchant Magazine



13

COMPANY Profile C.T. Darnell Construction

Racking specialist to build on new name

C

.T. DARNELL CONSTRUCTION is the new name of the design and construction division of Sunbelt Racks— which will continue to offer racking and storage systems, fixtures, equipment and logistics for the LBM industry.

“Our new name more accurately reflects the broad spectrum of services we have been offering lumber-

yard operators for more than 25 years,” says Travis Darnell, president of the Alpharetta, Ga.-based operation. “Many people do not know that we are a general contracting firm that offers so much more, not just equipping, but also planning and constructing.”

The new name emphasizes that CT Darnell is a nationally licensed, full-

service planner and constructor of LBM facilities, from simple storage options to full-scale, multi-unit lumberyards and retail facilities.

Capabilities include full-service building design and construction for store buildings, warehouse buildings, bulk storage sheds, rack-supported drive-thru buildings, and T-sheds.

CTD also modifies existing buildings.

NEW INTERIOR at McCoy’s Building Products, Taylor, Tx., showcases the space-planning skills of renamed CT Darnell Construction, Alpharetta, Ga.

14



The Merchant Magazine



September 2013

Building-Products.com

CT DARNELL has designed and constructed multiple locations throughout Texas for McCoy’s Building Supply, including this one in Taylor, Tx. Photos courtesy CT Darnell

Along with a new website, the new division got a new tagline—“We build solutions”—that is based on the company’s philosophy that it will not sell a customer something that isn’t right.

“If a customer comes to us and says they want a certain racking system or a certain shed, we will not sell it to them if it’s not what they really need,” says marketing director Sue Silva. “We’ve worked on over 1,000 lumberyards and we know how to fit them with racks or build a building to make them run efficiently.”

As Travis explains, “We typically spend planning time alongside an operations manager of a lumberyard or the owner of a retail store to ensure the finished product has perfect functionality.”

Or, as vice president Clint Darnell puts it, “You would be hard pressed to find any other nationally licensed contractor that has an in-depth understanding of both the lumber and construction industries.”

Founded in 1987 by Alan and Angie Darnell to serve lumberyards and the then-new big-box retailers, the firm has evolved into a full-service, licensed general contractor operating across the United States, Canada and the Caribbean. Travis and Clint Darnell, sons of the founders, became owners in 2008.

“Basically, CT Darnell Construction is a new name that represents a broad range of expertise and superior industry knowledge that’s always been there,” summarizes Travis.

“We are the only company out there that can do the entire job, from start to finish, so you’re dealing with just one company.”

Building-Products.com

September 2013



The Merchant Magazine



15

COMPETITIVE Intelligence

By Carla Waldemar

Recycled wood: Back to the future

T

HIS ISN ’ T THE STORY

of a thirdgeneration family firm where today’s top dogs grew up sweeping sawdust. Yet, had these fellows been born in the shadow of a lumberyard, it well could be. It’s the story of love at first sight.

Tony Fernandez, director of sales & marketing of North Cal Wood Products, based in the Bay Area town of Ukiah, Ca., has worked here “on and off, for 15 years. I was friends with the owner and into redwood myself—hot tubs, furniture. He noticed I loved wood and had a lumber mill, so we hooked up together.”

Mike Lacy, vice president of marketing, signed on with North Cal a year ago, leaving—true story, I swear—a career as a professional drummer performing with the Andy

Williams show in Branson, Mo. “I’ve always been involved with wood— even underwater wood. I’d invested money and networked in the lumber business,” Mike spins the tale. Today, he’s recounting the story of North Cal like someone who’s just got religion.

Which he has.

The outfit, launched in 1985, established its reputation with redwood, straight up. But, early on, one of its major successes was that the owner snagged North Cal as the exclusive supplier of redwood garden products for Home Depot.

“That coup helped get us started with a very good product and led us to play an important role here on the West Coast,” says Mike. “Competition, naturally, arose. We’d forged the path, but it was no longer as profitable

NORTHERN CALIFORNIA dealer has made a name for itself reclaiming and milling abandoned old growth logs from local forests, such as this 48"x48"x20' giant buckskin redwood timber.

16



The Merchant Magazine



September 2013

as it once was. So, in 2004, we became involved with a deconstruction project in Scotia.”

Another right-time, right-place serendipity. “The world’s largest redwood sawmill, Pacific Lumber Co., had gone bankrupt and lost their mill.

After deconstructing five million bd. ft., word got out and we got a contract for the redwood and delivery from Stanford University—another coup!

We had great relationships with all the sawmills. That provided us with inventory to start recycling in order to supply green products”—redwood, doug fir, western red cedar and more, all the buzz among California’s forward companies with sustainability as their byword. Now North Cal supplies flooring, siding, decking, lumber, custom trim, slabs and millwork. Word of mouth kicked in and soon attracted high-end clients in the Bay Area, including eco-forward corporations such as Facebook. Twitter, Land’s End, and Whole Foods. (Not to mention wealthy Hollywood tycoons building their new homes.)

“We developed resources to manage the chain of custody—we trained ourselves and financed it—so we can act as both source and distributor to our customers. We managed it all.

(And here’s an interesting sidelight,” Mike adds. “Our facility is located on three acres where Georgia Pacific once had a chemical plant. We did all the environmental abatement—a lot out of pocket—to change it from toxic to green. It’s a model in the reclaimed industry,” he rightly brags.)

Back on message, “We can do A to Z,” he explains. “Tear it down, truck it out, remove the toxics like lead and paint, remill it, then take it to our cusBuilding-Products.com

tomers.”

And how do you come up with the used wood to recycle, Mike? Again, the power of word of mouth. “Our reputation leads them to us,” he maintains.

Until the recession, anyway. “When it hit, it led to a lot of our competition going out of business. The recession slammed us, too, like everyone else: layoffs, scaling back operations. What happened was, quite a bit of consolidation among the competition. At our peak, back in the Home Depot days, we did $30 million a year. The recession knocked us back to $2 to $3 million. But today, we’re getting incredibly strong again. We’re back into garden products in a big way, signing with a national big box with 250 units in California alone—redwood lattice panels. Plus, independent dealers and homeowners are buying our products on the web. Sure, we’re in the commodity business, too, but our bread and butter is reclaimed wood,” Mike underscores, and points us to the amazing length and

NORTH CAL’S recycling adventure began with reclaimed timbers from Pacific Lumber Co.’s historic mill in Scotia, Ca.

breadth of North Cal’s portfolio detailed on its website.

(See photos of work for clients at www.northcal.com.)

Lots of dealers can sell wood well, but recycled wood adds another (bad pun alert) dimension. To sell it, customers get romanced with the sizzle as well as the steak.

“The story of wood,” Mike calls it. “We know where each piece comes from, and it helps marketing it. It also”—time out for a ta-da!—“enables us to demand premium prices— NOT commodity prices: The margins are much higher!”

Asked about the architectural style prominent among the corporations and individuals seeking this wood with history, Mike calls it Organic Modernism. “That’s the trend we see—old wood again, with natural elements, like stone, and steel for the industrial look.

“Most of our clients come from the Bay Area of California, but the list is truly national. Our second-highest arena is New York. The website we just launched, www.youclickitweshipit.com, takes us all over the country. It beats any big-box selection, and without having to travel to the store. Online, you can check multiple options—grade, sandblast, species—and all without a car or phone call or fax, which,” he adds, “reduces the carbon footprint.

“Other wood goes from forest to manufacturer, then distributor, then a home center and then to its customers. Here, it’s shipped direct. Saves time and energy.”

Building-Products.com

SANDBLASTED MANTEL was produced from a 4"x10" reclaimed Douglas fir timber.

Adds Tony, “The idea is, the independent contractor who’s at a jobsite in Wisconsin, trying to find studs or framing or flooring or siding can get online on his laptop or smart phone, check our inventory, read a product review, and place an order. With just a few clicks, he can get it shipped directly to the jobsite.”

About that vanguard website: “We launched it in 2009, literally the first to do what we’re doing. Granted, people aren’t used to shopping online for lumber, so the business started slowly, but it’s the wave of the future,” he’s convinced. “So we just redesigned our website, making it more search-friendly. And we’re utilizing social media, like Facebook and Twitter.

“It’s an online world. I foresee there’ll be a time when most of the company’s customers will shop and order online. It’s the wave of the future,” Mike is certain. “In the face of the recession, we created this as a way to grow, and it’s been growing since 2009. We’ve seen traffic triple, and it has earned us more revenue by June this year than all last year. It’ is not a big business right now, but customers are reacting very favorably, and it’s growing.”

Yes, but. Once before, North Cal led the way, only to have to bow to competition.

Rebuts Mike, “Sure, a lot of mills say having such a website would definitely be of service, but having a 4,000product integration, such as ours, on a site would be technically very hard to duplicate. The sweet spot is, we don’t have to broker any of this. We are both manufacturer, distributor and end-seller: no middle men. And in California, we deliver it with our own trucks.

“Reclaimed wood is where we stand out. And what we’ve found there is most interesting: It’s in high demand on the East Coast, where it’s not readily available, so many high-end, affluent clients from there order from us and have it shipped from California (never mind their freight price).”

Adds Tony, “We expect business to grow further as we emphasize our You Click, We Ship It campaign.”

Looks like there’s no going back to Andy Williams.

Carla Waldemar cwaldemar@comcast.net September 2013



The Merchant Magazine



17

OLSEN On Sales

By James Olsen

Selling the truth

T

HE TRUTH CAN change nations, move mountains, and set us free. But it cannot sell itself. That’s our job.

The skill sets we use as salespeople—building rapport, creating confidence, getting people to change their minds and say yes to us, quickly—are used by bad people to bad ends. They are called con artists. We are not con artists. We are salespeople, promoters of products we believe in.

We must believe in the product we are selling.

Promoting a product we don’t believe in is immoral. Sales is a reputation business. Lying catches up. People are not stupid. Salespeople who lie don’t survive (aside from a few talented sociopaths who bounce from job to job).

The biggest fear of salespeople who underperform is that they will be perceived as liars, not that they are liars.

Roughly 99.9% of all salespeople are honest and know it.

Many struggling sellers bend over backwards trying to make up for the 0.1% instead of acting like the honest (sales)people they are and promoting full steam ahead!

This fear precludes them from being great. Because at the moment(s) of truth (i.e., every moment in front of the customer) this feeling of “Oh, no, they are going to think I’m saying this just to get the order” (lying) causes the average salesperson to hesitate and pull back, just a little.

This pulling back doesn’t just happen at closing. It happens all the way through the sales process from prospect call to close. I call it “shambling around like a second class citizen.” Life is a mirror. When we act like a second class citizen, people treat us like one. They can’t help it.

It also causes “beating around the bush” syndrome—not asking directly for what we want—which confuses and frustrates the customer and does not create sales. In the hyper-competitive world of sales, this hesitation is where the customer and the order are lost.

Our Part in the Movie

We are not in the technical writing or research department. We are not accountants. We are in the promotions department. We promote things. We make them sound as good as possible. We are inspirational (not just informational). We can tell our woman we love her by text or we can buy her a bouquet of flowers and hand deliver them to her at her office. Which will she prefer?

Customer: I like the color. Is this any good?

Quotron: Yeah, it’s good.

Inspirational Seller: That is a great color and it goes with your eyes. Made in the U.S.A., it was given the award for quality at last year’s New York fashion awards.

Hiding Behind the Truth

Many quotrons don’t want to do sales work. They want to present product and let the customer decide. If the customer says yes, they get the order. If not, oh well. These

18



The Merchant Magazine



September 2013

(sales?)people hide behind the truth. But sadly and unprofitably, it’s a lazy, uncreative truth.

Two lumber salespeople have an identical challenge: a truckload of 2x4 2&Btr., 14 ft.—that has to go today!

Quotron: I tried to sell it, but my guy couldn’t use 14s.

(Truth) Master Seller: My guy couldn’t use 14s, so I sold them to him on a 12-ft. count. You said, do your best on the price, but move it today, so it’s gone. What’s next?

(Profitable Truth)

Just Bigger

I did a radio show for a year called The Sales Doctor.

The night of the first show, I was prepared, psyched and nervous as H-E-Double Thunder. Right before showtime, the station manager came in and said, “James, you see that light up there? When it turns red, it’s you”—and then he took both hands and acted like he was lifting up a world and added—“just bigger!”

Salespeople who dominate embrace the “just bigger” aspect of the job. Be yourself. We all promote and sell the truth in our own way.

We don’t have to be loud to be passionate. But we do have to show our passion. We can show our passion through quiet intensity, for example. So whoever you are and whatever truth you are selling, sell it—just bigger.

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

OSH Emptying 9 More Stores as Lowe’s Moves In Close-out sales have begun at nine more Orchard Supply Hardware stores not among the 72 locations being acquired by Lowe’s.

Great American Group has been hired to empty out remaining inventory in Burbank, Canoga Park, El Cerrito, Lodi, Merced, Santa Ana, Santa Clarita, Torrance and Yuba City, Ca. Stores in Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown Los Angeles, New-

ark and Vacaville, Ca., began liquidating in late June and closed Aug. 31.

Days earlier, the bankruptcy court approved the sale of the majority of OSH’s assets to Lowe’s for roughly $205 million in cash, plus the assumption of payables owed to OSH vendors.

The deal was expected to close by the end of August, at which time Richard D. Maltsbarger was to become president of Orchard, replacing Mark Baker.

DEALER Briefs South Regal Lumber Yard, Spokane, Wa., will close by early next year after 64 years and consolidate with sister company West Plains Building Supply, Spokane.

Berkeley Ace Hardware , Berkeley, Ca., must find a temporary new home by the spring, when construction begins nearby on a new apartment complex—the city’s largest.

Windows, Doors & More cofounder Ken Hall has begun transitioning ownership of the Seattle, Wa.based company to Rick Locke.

Hall will continue with the 20-yearold business in an advisory role during the transition and serve in sales thereafter.

South Puget Sound Habitat for Humanity opened a larger, 23,000-sq. ft. replacement store in west Olympia, Wa., Sept. 10.

Twenty-five independently owned

Ace Hardware stores in Colorado,

New Mexico and Wyoming raised more than $10,000 for local charities in the co-op’s fifth annual “Grill Your Ace Off” grilling competition and fundraiser.

Anniversaries: Timber Products Co., Springfield, Or., 95th …

Sunset Moulding, Live Oak, Ca., 65th … Junction True Value Hardware, W. Seattle, Wa., 60th …

Alpine Lumber, Englewood, Co., 50th …

Weyco Sues Over LP’s LSL

Weyerhaeuser Co. has filed suit claiming LP Building Products’ new SolidGuard line of zinc-borate-treated laminated strand lumber violates the trademark held for its own StrandGuard zinc-borate-treated LSL. According to Weyerhaeuser since StrandGuard is currently the only treated LSL structural product that starts with the sound and letter ‘S’ and ends with ‘Guard,’ LP presumably intended to trade on the 10-year-old product’s good name.

Weyco is seeking a temporary restraining order, a permanent injunction against LP using the SolidGuard name, destruction of all SolidGuard marketing materials, plus damages and attorneys fees.

20



The Merchant Magazine



September 2013

Building-Products.com

Omak Mill Nearly Ready to Restart

Wood Resources LLC, Shelton, Wa., is completing restoration of the former Colville Indian Plywood & Veneer mill in Omak, Wa., and will operate the facility under a new subsidiary, Omak Wood Products LLC. Forty workers are currently working on the plant, which closed in 2009. Before the end of the year, the facility will employ as many as 100 employees producing softwood veneer. Douglas fir plywood production will begin in mid2014. At full production, Omak will employ as many as 200.

Wood Resources, which also operates Olympic Panel Products, Shelton, has no plans to restart the Colville Indian Precision Pine sawmill in Omak, which also closed in 2009.

Judge Drops Lawsuit Against SPI

A judge has dismissed a lawsuit brought by the California Department of Forestry and Fire Protection for monetary damages against Sierra Pacific Industries, Anderson, Ca., and other defendants regarding Sept. 2007 fire that started on private land and spread to the Plumas National Forest and other private holdings.

“This is a significant victory for SPI and the other defendants in the case,” said spokesman Mark Pawlicki. “We knew all along that the evidence did not support the state’s claim that our contractor started the fire.”

SPI alleged that the government’s fire investigators in this case conducted a faulty investigation and were not able to identify the true origin of the fire. During recent depositions, Cal Fire’s own expert on wildland fire investigations

said during recent depositions that it was “more probable than not” that the Moonlight investigators engaged in acts of deception while testifying about a primary aspect of their investigation.

“Although Cal Fire employees are highly regarded for their professionalism and integrity, unfortunately, the Moonlight investigations did not live up to that standard,” said Pawlicki.

The government’s investigators in the Moonlight Fire had alleged that SPI’s logger started the fire by striking a rock with a bulldozer, causing a spark to ignite woody material. Further, the state alleged that the logger failed to obey the law, which requires a series of procedures to be followed during logging operations. Judge Nichols ruled that the state did not have evidence to support these claims.

Last year, a federal court ruled that SPI could be liable for damages in this case even if its operators did not start the fire. The decision prompted to settle, agreeing to pay $55 million in damages and transfer 22,500 acres of timberland to the federal government.

SUPPLIER Briefs Willamette Valley Forest Products, Beaverton, Or., has been launched by Mike Atkerson, ex-Sherwood Lumber, specializing in concrete form specialty sales.

Swanson Group’s dimension lumber mill at Glendale, Or., recently installed a Transverse High Grader from USNR. Pleasant Lumber, Monte Vista, Co., suffered an Aug. 22 mill fire caused by electrical and mechanical problems.

California Cascade Industries is now distributing Fortress Versai residential fencing throughout California

from its DCs in Sacramento and Fontana, Ca.

Weyerhaeuser has added a shift at its Trus Joist plant in Boise, Id., to increase production of TJI Joists coated with Flak Jacket protection.

CPG International will unite its TimberTech and AZEK brands under a single organization, CPG Building Products. Sales teams from both brands will be combined.

ProVia unveiled an online Visualizer that allows consumers and dealers to preview products integrated into photos of their own homes.

GAF is now offering Deck-Armor and Tiger Paw custom logo programs, allowing lumberyards and contractors to have their logos co-branded on to the roof deck protection products.

APA–The Engineered Wood Association , Tacoma, Wa., relaunched www.performancewalls.org, a free resource for building safe, durable and code-compliant walls.

Builders Hardware Manufacturers Association

has added a certified products directory to its website.

Wynndell Lumber Sales, Wynndel, B.C., this month celebrates its 100th anniversary—reportedly making it the oldest family-owned sawmill in British Columbia.

22



The Merchant Magazine



September 2013

Building-Products.com

GetRedwood.com

What good is a

LOW-MAINTENANCE DECK if it creates a

HIGH-MAINTENANCE

CUSTOMER? Whether you’re selling to a pro or a do-it-yourselfer, you want a satisfied customer, not a potential warranty claim.

“Beautiful decks and satisfied homeowners. That’s two big reasons why I love working with redwood.”

And nothing satisfies customers like naturally strong, durable and beautiful FSC® certified Humboldt Redwood.

Contractors love it because it’s easy to work with.

Homeowners love it because it looks great and lasts for decades with easy maintenance. In fact, with Humboldt Redwood, the only things that come back are satisfied customers.

Let’s build a long-term, profitable business relationship together.

Contact Julie Wright at (707) 764-4472 or visit us at GetRedwood.com

Christopher Stewart awardwinningdecks.com

FSC® C005200

GetRedwood.com

AllweatherWood.com © 2013

EPDs Issued for LVL, I-Joists The American Wood Council and Canadian Wood Council have released two new environmental product declarations for LVL and wood Ijoists. Four others—for softwood lumber, softwood plywood, OSB, and glulam—were released in May. EPDs are standardized tools that provide information about the environmental footprint of the products they cover. The North American wood products industry has taken its EPDs one step further by obtaining third-party verification from UL Environment, a business unit of Underwriters Laboratories and an independent product certifier.

According to AWC president and c.e.o. Robert Glowinski, “With the U.S. Green Building Council membership’s recent approval of LEED v4 and its point recognition for disclosure and optimization of building product life-cycle impacts, the value of these six industry-wide EPDs in green building rating systems has taken a significant step forward.

Additionally, the online version of the Green Globes building rating system also provides points for using prod-

24



The Merchant Magazine



ucts that have third-party-verified EPDs. Clearly, there is a need to provide building teams with sciencebased information on environmental impacts of products and primary energy consumption so that more informed decisions are possible.”

“The transparency provided in an EPD helps to pinpoint locations in the production and supply chain where wood products exhibit favorable environmental performance, as well as areas where lower impacts can be realized in the future,” said Michael Giroux, CWC president. “This type of objective, science-based data will

help demonstrate to the design community that the wood industry is committed to full disclosure and will mitigate any false stigmas which may have previously existed without scientific or justified proof.”

Based on international standards, EPDs have worldwide applicability and include information about product environmental impacts such as use of resources, global warming potential, emissions to air, soil and water, and waste generation.

Business purchasing decisions may soon require the kind of environmental information provided by EPDs to account for factors such as carbon footprint.

Landscaping Items Growing Again U.S. demand for landscaping products is projected to grow 6.9% annually through 2017 to $6.5 billion, predicts the Freedonia Group.

Improved construction activity, particularly in the number of new housing completions from low 2012 base levels, will be the primary driver of growth. An acceleration in

September 2013

sales of existing homes, a rebound in office and commercial construction, and a drop in office vacancy rates will also support gains.

A key growth factor for landscaping products is the ongoing interest in developing outdoor living spaces for relaxation and entertaining.

Building-Products.com

Compare and see.

Take the EverGrain Deck Board Challenge. ®

Compare EverGrain’s beauty side-by-side vs. the appearance of the leading competitor and see the difference it makes for your customers.

Challenge 1: Random Look LEADING COMPETITOR

PATTERN REPEATS EVERY 37- 3/8"

EVERGRAIN® ENVISION® PATTERN NEVER REPEATS ACROSS ENTIRE BOARD

Challenge 1: First, notice how the leading competitor’s pattern repeats every 37- 3/8 inches—that’s the same grain pattern repeated five times on a single 16-foot board. But EverGrain creates a random pattern that never repeats across the entire board for a more natural wood look.

Challenge 2: Wood Grain Beauty LEADING COMPETITOR

Challenge 3: Limited Warranty* RESIDENTIAL LIMITED WARRANTY

COMMERCIAL LIMITED WARRANTY

LABOR LIMITED WARRANTY**

LEADING COMPETITOR

25 YEARS

10 YEARS

0 YEARS

EVERGRAIN & EVERGRAIN ENVISION

20 YEARS

20 YEARS

5 YEARS

EVERGRAIN ENVISION

Challenge 2: The competitor’s extruded board features an embossed repeating pattern on the surface of the board. EverGrain’s compression molded process creates a grain with dramatic and lasting beauty.

Challenge 3: Finally, compare limited warranties. EverGrain offers a 20-year commercial Limited Warranty and covers both materials and labor for the first 5 years of the Limited Warranty.**

To learn more about EverGrain, visit EverGrainChallenge.com.

EverGrain

Envision Bonded Composite Decking

©2013 TAMKO Building Products, Inc. TAMKO, EverGrain and Envision are registered trademarks of TAMKO Building Products, Inc. *This comparison is based on the leading competitor’s standard limited warranty compared to TAMKO’s Limited Warranty. To obtain a copy of TAMKO’s Limited Warranty, visit us online at tamko.com or call us at 1-800-641-4691. **Coverage for the reasonable cost of labor does not include the cost of removal or disposal of previously installed decking material.

Trex Settlement Approved

On Aug. 19, a federal judge in California gave Trex Co., Winchester, Va., preliminary approval to pay up to $8.25 million to settle a long-running class action suit alleging the company sold defective decks that were vulnerable to discoloration from a fungus.

U.S. District Judge Jeffrey S. White signed off on the deal, despite opposition from the plaintiff in a parallel suit in New Jersey who complained that Trex’s plan to notify class members was inadequate and that the release in the settlement should be limited to those who actually submit claims. The objecting plaintiff, Dr. Caryn Borger, won’t be barred from raising further objections to the deal when it goes up for final approval, according to the order.

The settlement resolves lawsuits brought by 11 plaintiffs across the U.S., beginning in 2009, which alleged that the wood-plastic composite decks purchased from Trex were quickly plagued by fungal spotting and discoloration.

According to the lawsuits, the product’s 25-year warranty promised that it would not suffer material defects or structural damage from fungal decay. Trex denied the allegations, claiming the problems resulted from environmental factors or other issues not covered under the warranty.

According to court documents, customers who purchased a Trex deck from August 2004 to the present can choose between cash, partial cash refunds and reimbursements, or cash-rebate relief. The cash rebates are set at 40% to 50% of the price of “new-generation decking” designed to resist mold stains and can be worth more than $2,000 toward an “average-sized” deck.

The settlement is capped at $8.25 million, with another $1.48 million set aside for attorneys’ fees and expenses.

SIMPSON STRONG-TIE’S Strong Frame special moment frame was the star of seismic retrofit tests conducted July 24-Aug. 5 at the University of California, San Diego.

REAL. STRONG. REDWOOD.

Redwood is a renewable building material grown in some of the worlds’ most well-managed and productive forests. The lumber produced from those forests is one of nature’s longest lasting, strongest and most eco-friendly, as redwood stores more carbon than is emitted over its entire life cycle.

Redwood offers significant environmental advantages over manmade materials such as plastic composite decking.

26



The Merchant Magazine



September 2013

Building-Products.com

Deliver more deck sales.

Many lumber dealers are seeing their annual deck sales increase with the use of DeckTools® software. The program is simple to learn and easy to navigate – in fact, dealers can design a deck in a few minutes, keeping them on the show floor (rather than in the backroom designing by hand). Your customers also will be impressed with your DeckTools software as they see a professional, 3D photo-quality image of their deck attached to their house. The program is customizable and includes many brand-name decking manufacturers, which makes it easy to show and sell upgrades that you stock. And it takes care of all the paperwork with quotes, take-offs and plans.

DeckTools makes it easy to deliver more deck sales. Learn how by signing up for a free demonstration at www.strongtie.com/decktools or (800) 999-5099.

©2013 Simpson

Strong-Tie Company Inc. DECKTOOLS12-D

left the company, unusual fund transfers were noticed and the police were contacted. A detective working on the case discovered that Shannon had been depositing the businesses’ money into her credit card account and that of her boyfriend, Kevin Chesnut.

Chesnut was charged with three counts of first-degree theft and five counts of aggravated first-degree theft and released. Shannon was arrested and charged with one count of firstdegree theft and seven counts of aggravated first-degree theft.

“There should always be checks and balances to make sure you’re not losing money,” Lt. Mike Budreau said. “So many people just rely on the bookkeeper to be truthful and will sign documents and checks based on what the bookkeeper says they are for.”

BUILDING MATERIAL DISTRIBUTORS (BMD) is celebrating 70 years of business in Galt, Ca. The employee-owned company also has locations in Riverside and Eureka, Ca.; Colorado Springs, Co.; Santa Fe, N.M., and Memphis, Tn.

Bookkeeper Accused of Embezzling from Wholesaler

The former bookkeeper of Western Lumber, Medford, Or., was charged with aggravated theft after allegedly embezzling about $175,000 from the

28



The Merchant Magazine



company. The woman’s live-in boyfriend was also charged.

Amanda Shannon, who worked for Western from May 2010 to November 2012, was dismissed for reasons unrelated to the investigation. After she

September 2013

Thief Electrocuted at Mill

Work crews at an abandoned Hood Lumber plywood mill in Lyons, Or., discovered the charred remains of a 36-year-old man who was electrocuted while trying to steal copper wire from an electrical panel at the mill.

The body of Dustin Harris was found on Aug. 6, about 16 ft. away from the panel.

Building-Products.com

MOVERS & Shakers Beau Nobmann, ex-Golden State Lumber, has been named general mgr. of HPM Building Supply, Kapolei, Hi. Rocky Galloway, ex-Kenyon Noble Lumber, has rejoined Great Falls Do it Best Lumber, Great Falls, Mt., as mgr.

Brendon Bolton, ex-Lumber Yard Supply, was named general mgr. of Rock Creek Lumber, Billings, Mt. John Reed and Ryan Walters, both ex-Enyeart Cedar Products, has joined Sherwood Lumber Co., Lake Oswego, Or., leading its cedar specialties division.

Josh Hanson is new to sales at Thunderbolt Wood Treating, Riverbank, Ca. Jim Haas, ex-Interfor, has been named business development mgr. for the California Redwood Co., Eureka, Ca. Mark Sparrow, ex-Selle Supply, has been named mgr. of Stock Building Supply, Albuquerque, N.M. Casey Craig is a new lumber trader at Matheus Lumber, Vancouver, Wa. Stephanie Pedersen, PRO Group, Denver, Co., has been promoted to associate buyer.

Keith Church is new to window & door sales at Dunn Lumber, Seattle, Wa. Parker Nehl has joined Timber Products Co., Springfield, Or., as territory sales mgr. for Co., Wy., S.D., Ne., Ks., Mo., and western Canada.

Jeffrey Jenkins has been named v.p.finance for Capital Lumber, Phoenix, Az.

30



The Merchant Magazine



Maurice Van Hall has been appointed president of Action Wood Products, Turner, Or. Peter Siebert has joined National Lumber & Building Products, Casper, Wy., as managing director.

He is based in the Dallas, Tx., area.

Shawn Southerland is new to sales support and purchasing at Sierra Lumber, San Jose, Ca. Bruce Kennedy is new to MAX USA, as Los Angeles-based West Coast regional sales mgr.

Bryan Ross Buchanan has been promoted to store mgr. at Home Depot, Elko, Nv. Jerald Richards, ex-Weyerhaeuser, has been named v.p. and chief financial officer for Potlatch Corp., Spokane, Wa. Dave Bartel has retired from Cardinal Trading, Eugene, Or., after 40 years in the industry.

Neta Assaf is a new sales & marketing analyst for Mendocino Forest Products, Santa Rosa, Ca. Mario Serra, ex-Timber Products Co., has joined States Industries, Eugene, Or., as OEM/national accounts sales mgr.

Timothy Punke has been appointed senior v.p.-corporate affairs & public policy for Plum Creek Timber Co., Seattle, Wa., effective Oct. 1.

Vanessa McMurry-Cox has been named marketing director for Southwest Fastener, Phoenix, Az. Wendy Minichiello has been named business development mgr.-West region for ABC Supply. She is based in Carlsbad, Ca.

September 2013

Steve DeFir, sales mgr., Banks Lumber Co., Banks, Or., has retired after 40 years with the company.

He is succeeded by Scott Swanson, ex-BlueLinx.

Shellie Sellards, ex-Trex, has been named v.p.-marketing at Fiberon, New London, N.C. Cathy Slater was named senior v.p.OSB, engineered lumber products, and distribution at Weyerhaeuser Co., Federal Way, Wa. Adrian Blocker has been promoted to senior v.p.-lumber. Miles Drake, chief technology officer and senior v.p.-research & development, has retired. Larry Burrows, senior v.p.-wood products, retires Oct. 31.

Mike McInnes is the new sales mgr. at Terminal Forest Products, Richmond, B.C. Tom Searles is retiring Jan. 1 after 49 years with American Lumber Standard Committee, the last 43 as president.

Dan Bohannon, president, Bohannon Lumber, Orange, Ca., teamed with Brian Cheney to win the recent U.S. National Indoor Tennis Championships (65 and over) in Vancouver, Wa. Charlie Jordain is celebrating 25 years with the California Redwood Association. He started in 1988 as supervisor of technical services and has been president since 2006.

Helen Waite is the new customer service mgr. at Mungus-Fungus Forest Products, Climax, Nv. Owners Hugh Mungus and Freddy Fungus are looking forward to telling customers with a complaint to “go to Helen Waite.”

Building-Products.com

FAMILY Business

By Wayne Rivers

Estate planning for family businesses

R

a great time to undertake family business estate planning—asset values are low, many senior generation members are worn out by turbulent business cycles and seeking relief from the daily grind, and “NextGen” family members are nearing middle age.

Most family business owners, when it comes to estate planning, make things too complicated. The process can seem daunting, so below is a short menu of options that might give you the clarity you seek for moving ahead.

IGHT NOW IS

Issue #1: “I don’t know how to plan my estate because I don’t know how to dispose of my business.”

When it comes to disposing of a family business, big or small, there are only four choices: close the doors, give it away, sell it to insiders, or sell it to outsiders.

Closing the doors doesn’t make much sense for a company with future potential, and owners who are closing their doors won’t be interested in this article, so let’s dispose of option one.

The other three options—or a combination of them—are all viable when it comes to transferring the family business. For example, you could elect to give 49% of your business to your children while selling them 26% and selling 25% to a valuable key employee so that she’ll have a piece of the action. Once you’ve made this decision, estate planning becomes much easier due to the fact that most closely held business owners have between 50% and 95% of their assets tied up in their business operations.

Issue #2: “I have three kids and I’m unsure how to be fair to them.”

The top two tried-and-true alternatives for promoting family fairness are (1) pass or sell company stock only to employee children while non-employee children inherit other assets or (2) divide all assets, business and nonbusiness alike, equally among your 32



The Merchant Magazine



children. Either option can work well if it’s carefully planned and equitable.

If you’re going to pass assets to your children equally, they’ll need mutual protections. That is, nonemployee children must be protected from employee children who might declare that all company cash flows should come to them in the form of performance bonuses, leaving nonemployee children out in the cold.

Likewise, employee children may need protections from non-employee owners who may arbitrarily seek to overrule their employee siblings, interject themselves in business decisions, change an employee child’s compensation, or unilaterally reward themselves from company treasury.

Mutual protections should be just that: mutual. The goal is fairness and equitability. If you’re worried, in spite of mutual protections, that your children may not get along or may not understand the reasoning behind the planning, the senior generation can retain voting stock for a time, in order to let things settle down.

Issue #3: “I don’t want to upset my children by doing something in the estate planning process they won’t like later, and I’m just not sure what their reactions might be.”

Ask them! It’s never made a great deal of sense that most estate planning takes place in a vacuum. That is, Mom and Dad go to their advisors and map out an estate strategy, put the documents into a drawer, and hope the fateful day doesn’t come for a long time. When it does inevitably arrive, advisors and children read the docu-

September 2013

ments to discover how assets—including the family company—are distributed. Talk about an opportunity for some ugly surprises!

Parents and adult children should sit down and talk rationally about their hopes, dreams and wishes for the future. If that conversation won’t go very well in your family, enlist advisors or an objective third party to facilitate. You can find out now or find out later; there’s rarely any advantage in putting these discussions.

Issue #4: “I know I need to begin planning, but I don’t know a good advisor in my area.”

Come on! That’s really a poor excuse not to take action. Most people find quality professionals through word of mouth. If that doesn’t work, use research guides like MartindaleHubbell, which catalogs top attorneys in the country by specialty; contact your local bar association or Society of Certified Public Accountants; research certified financial planners in your area, or simply do a web search.

Any option should turn up several professionals with whom you might at least begin the discussion.

We certainly don’t want to minimize the process of estate planning. It can be a complicated and technical.

However, most estates are fairly simple to plan. The most important thing is taking the first step. Once you move forward and create positive momentum, things always seem clearer.

In the 1990s, we were working with a dealer—since deceased—who was worth about $20 million. He was putting off estate planning because of difficulty over an asset he owned with a partner. The asset represented about 2.5% of his total net worth, but it was consuming a great deal of his time and attention. We looked him in the eye and said, “Are you seriously going to tell us that as a businessman you are going to let the troublesome 2.5% of your assets stand in the way of planning for the other 97.5%?” He looked at the ceiling for a minute, considered what we were saying, and said, “You’re right, let’s get started.”

Doing something is vastly preferable to doing nothing, and now is a great time for smart estate planning.

– Wayne Rivers is president of Family Business Institute, Raleigh, N.C. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493.

Reprinted with permission of Key Resources LLC. No portion of this article may be reproduced without its permission.

Building-Products.com

KAHLE On Sales

By Dave Kahle

Fundamentals of key account selling

A

LMOST EVERY professional B2B salesperson comes to grips with one of the challenges of penetrating key accounts. Key accounts are different than the ordinary and require more sophisticated skills and strategies.

Here are four fundamentals for effectively penetrating key accounts.

1. Recognize that key accounts are different.

First of all, they are larger. But that’s only the beginning. Their decision-making processes will be much more complex and, in some cases, highly structured. A product that may, in a smaller account, only need one person’s approval to purchase can require dozens of people to sign off on it in a key account.

The people have widely different specialty skill sets, perspectives and motivations. In smaller accounts, you may only have to deal effectively with an owner or executive. In key accounts, the same product may require skillful communications with an engineer, a purchasing agent, a project manager, and a foreman. Each of these specialties is likely to have a different personality type, challenging the sales person to adapt.

Because of the size and complexity, there are a variety of motivations and agendas inside a key account. A naive salesperson can be constantly frustrated because they all don’t think the way he/she thinks. If you don’t adjust your strategies and tactics to the unique dynamics of a key account, you will be wasting your time.

2. Approach the organization of your time within a key account like you would your entire territory.

When you look at your territory, you see lots of indepen-

34



The Merchant Magazine



September 2013

dent units we call accounts. You understand that each has a unique set of needs, budgets and personal dynamics, and that each offers its own set of opportunities.

When you approach a key account, think of it as a territory on its own, with lots of units that act like accounts.

These units can be departments, branches, plants or whatever organization exists within that account. Each one of them may conceivably have the ability to purchase or move forward the purchase of your products and services. Each unit, whatever it may be, has its own unique set of needs, budgets and personal dynamics. And, in many cases, the purchasing power of one of those units can far outstrip the purchasing power of one of your smaller accounts.

Just as you would begin your work in your sales territory by first identifying all the potential accounts, so, too, you begin your work in a key account by identifying all the individual units and then understanding the relationships among them. Just as you would take six months or a year to come to know the accounts in your territory, expect that it will take a like period of time to identify and come to know all of the units within your key accounts.

Just as you would attempt to ascertain what opportunities there were in each of your other accounts, try to uncover the opportunities in each of the key account units.

While key accounts are more complex and require some more sophisticated strategies and skills on your part, the perspective that you take to managing your time in a key account should mimic the perspective you take in coming to know the accounts in your territory.

3. Understand that you gain traction in key accounts through relationships, leverage and organization.

If you are going to have influence in a key account, you must have relationships with the influential people.

Because of the size of a key account, and the natural movement of people within it, that means that coming to know the influential people is not an event which has an ending, but is rather a constant process that never ends. Make a list of the people who should know you, and update it after every sales call.

Who are the department heads in each of those units?

Who are influencers? The decision makers? Who could be a champion for you?

Not only do you need to proactively expand your relationships deep into the organization, but you also need to focus upward. Get to know the people who oversee combinations of units, and the C-level people in the corner suites.

Building-Products.com

There is a fundamental equation in B2B sales, and it operates just as reliably in key accounts as it does elsewhere: Relationships lead to opportunities.

Opportunities lead to projects.

Projects lead to sales.

So, if you want to increase your sales, begin with relationships. The primary way you do that is to leverage every question, every positive relationship, every conversation, and every opportunity to more of the same.

Leverage, in this case, means using something to create something additional. In other words, you use every conversation as an opportunity to open the door to more. Assume the attitude that there is always more. There are more people to meet, more opportunities to uncover, more problems to solve, and more needs to fill.

In every single sales call, you ought to ask, “Who else should I be talking to?” Or, “Who should I know in xxxx department?” If you successfully sell something, that experience should be leveraged to uncover the next opportunity. If you meet someone, that relationship should be leveraged to create more. And so it goes, unending.

4. Finally, remember that key accounts are no place for the unorganized salesperson.

Successfully selling to a key account requires organizational tools and disciplines that are a stretch for the average salesperson. Imagine all the people you need to know, multiply them by the relationships and agendas among them, overlay that with the account’s strategies, needs and budgets, factor in all the opportunities and the steps in each process necessary to bring it to fruition, and you'll begin to get an idea of the degree to which you'll need to collect information, store it, and continually use it. A sophisticated CRM system is a must, as is the discipline to use it religiously.

While these few ideas are not the whole story, they will get you started in your efforts to successfully sell to key accounts. Recognize the difference, plan your time as if each were a sales territory on its own, and apply the weapons of relationship, leverage and organization to the task. You’ll be well on your way.

– Dave Kahle is a leading sales educator, speaker, and author of nine books, including How to Sell Anything to Anyone Anytime. Reach him through dave@ davekahle.com.

Building-Products.com

“I choose mutual insurance because i know we’re in this together.”

Business owners who work with a mutual insurance company have a shared purpose, getting the best coverage and protection available. And mutual insurance delivers because mutuals serve policyholders, not shareholders.

Our decisions are always based on what’s best for you and your business.

Plus local brokers offer customized solutions for all your business insurance needs. Find out how mutual insurance can work for you.

800.752.1895 | www.plmins.com

Member of the National Association of Mutual Insurance Companies “SHARED PURPOSE. MUTUAL VALUES” TM is a registered trademark of the National Association of Mutual Insurance Companies. All rights reserved. © 2012 National Association of Mutual Insurance Companies.

SHARED PURPOSE. MUTUAL VALUES.™ September 2013



The Merchant Magazine



35

NEW Products

Extruded Railing

Hampton extruded rail system

by INTEX Millwork Solutions is crafted from cellular PVC, for

durability and low maintenance.

Features include spans up to 10 ft., custom bent radiuses, three line rail options, and stainless steel hidden fasteners.

Top rails are available in both peaked and flat cap styles.

Pyramidal and flat newel caps fit standard 6”, 8”, 10”, and 12” columns. Standard balusters are 1.25” square.

 INTEXMILLWORK.COM (856) 293-4100

Windows with Style

Signature Series aluminum-clad wood windows and patio doors from Weather Shield can be ordered in a full range of styles and configurations.

New Tri-Core frame technology combines moisture-resistant materials, a fusion-welded sub frame, and multi-chamber sub-frame components to achieve high levels of energy efficiency and thermal performance.

Interiors are available in standard pine or optional alder, with a choice of primed or factory-applied paint or stains.

Hardware comes in white, tan, brushed nickel, and rustic bronze.

Bamboo Decking

BamDeck 3G composite decking from Cali Bamboo offers a contemporary look that is termite resistant.

Boards are formulated of 60% reclaimed bamboo fibers and 40% recycled HDPE plastics.

Standard and wide planks are offered in three colors: caramel, coffee and slate.

 CALIBAMBOO.COM (888) 788-2254

 WEATHERSHIELD.COM (800) 477-6808

Patches in a Pinch

Presto Patch from DAP simplifies drywall repairs, reducing the time and difficulty of getting the job done.

Each patch is constructed of 1/2” thick drywall, pre-cut into a circle with drywall taping paper attached.

When covered with joint compound, the result is permanent bonding between the patch and wall.

 DAP.COM

(888) 327-8477

36



The Merchant Magazine



September 2013

Building-Products.com

Bridging Connector

A DBC drywall bridging connector from Simpson Strong-Tie is designed to fit smaller web knockouts common to drywall studs.

The cold-formed steel fastener is load-rated for smaller 3/4” uchannel bridging. It is compatible with conventional and proprietary drywall studs ranging from 15-33 mil thicknesses, with stud depths of 3-5/8” and 6”.

It also enables one- to twoscrew installation, reducing labor and material costs.

 STRONGTIE.COM (800) 999-5099

Concrete Seal

ChemMasters’ new concrete cure and seal product can be used on driveways, garage floors, and sidewalks.

Silencure SRT provides a curing compound and penetrating siloxane sealer in a single product, which can be applied on new or older unsealed concrete.

 CHEMMASTERS.NET (800) 486-7866

Building-Products.com

September 2013



The Merchant Magazine



37

Insulated Sheathing

New diesel lift trucks from Cat Lift Trucks are designed to meet EPA’s Tier 4 emissions standards.

The DP40N1-DP55N1 series provides a 21.6% increase in fuel efficiency, in addition to increased performance and reduced emission levels. The engine also features low-noise levels, for reduced operator fatigue.

GAF’s EnergyGuard polylso insulated sheathing helps reduce energy costs while increasing occupant comfort, by eliminating thermal bridging.

The product is manufactured with EPA-compliant blowing agents that contain no CFCs or HCFCs. It can be used in a range of applications, including cavity and masonry walls, stud walls, exterior stucco, re-siding, and vaulted ceilings.

Boards measure 4’x8’ in thicknesses of 0.5”, 0.75”, 1”, and 2”.

 CAT-LIFT.COM

 GAF.COM

New Diesel Lifts

(800) 447-6434

(877) 423-7663

Improved Electric Lifts

Mitsubishi’s new electric forklifts feature several standard improvements and value-added options.

Equipped with three-phase AC technology, the FBC22N2FBC30LN2 lifts are designed for maximum power and energy efficiency. Easy access to major components simplifies periodic inspection and servicing, helping to decrease costs and downtime.

Ergonomics have been improved by more space in the operator compartment, a full suspension seat that can be adjusted three ways, and conveniently located hydraulic levers.

 MIT-LIFT.COM (713) 365-1000

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 info@wetreatwood.com

Sales for Coast Wood Preserving 38



The Merchant Magazine



September 2013

Building-Products.com

Seam Tape

DuckBack’s new seam tape bridges transition areas such as seams and joints on plywood decks, concrete, metal and fiberglass.

The product contours over and around seams, joints, cracks, vents, drains and flashing to add strength and flexibility. It can be used prior to a top-coat application of Superdeck Deck & Dock elastomeric coating.

 SUPERDECK.COM (800) 825-5382

Ultra-Flushing Toilet

The Ultra Flush toilet from Gerber Plumbing is now available as a WaterSense-approved 1.28 gpf model.

Other features include a Sloan Flushmate pressure vessel, noncorrosive solid-brass tank-tobowl bolts, and an insulated tank.

Other options are both round and elongated configurations, plus an elongated ErgoHeight combination.

 GERBERONLINE.COM (886) 538-5536

Building-Products.com

September 2013



The Merchant Magazine



39

UMPQUA VALLEY MILL DAYS Photos by The Merchant

UMPQUA VALLEY Lumber Association hosted its summer gathering Aug. 7-9 at Seven Feathers Casino Resort, Canyonville, Or. [1] Joelle McGrorty, Shirley Moore, Debby Thomas. [2] Kevin Dodds, Kelly Brown. [3] John Murphy, Nancy Daniels, Buster McElreath. [4] Charity Taylor, Peggy & Todd

40



The Merchant Magazine



Lund, Gary & Sandy Pittman, Raegan Stratton.

[5] John Parsons. [6] Duanne Leavitt, Donna Phibbs, Rose & John Huey. [7] Rick Troxel, Tim Beaudoin. [8] John Assman, Troy Huff. [9] Don Graver, Terri Collins, Joe LaBerge. [10] Chuck Casey, Danny Osborne. [11] Vicky Anderson, Reuben Schainen. [12] Leland September 2013

Curtiss, Sunny Field, Randy Gregory, Chuck Danskey. [13] Rick Deen, Joann Watts, Steve Buske. [14] Jeff Ostrom, Sara & Jim Hunt. [15] Brenda Lovell, Bill Hetland. [16] Dave Rainey, Mary McMurphy, Greg Chase.

(More photos on next two pages) Building-Products.com

UMPQUA VALLEY MILL DAYS Photos by The Merchant

UMPQUA EVENT (continued from previous page) had a theme of “Tiki Nights”. [1] Matt Duquette, Blake Keitzman, Alex Rogers, Andrea Stratton, Jay Bishop, Kim Spaulding.

[2] Lennie Johnson, Tim Hunt. [3] David Miles, Shelly Gillan, Mark Swinth. [4] Matt Kolar, Stella & Art Reid. [5] Patrick Cardoza, Robert Spaulding. [6] Joe Robinson, Kurt Batey, Lisa Rappe, Bill Livingston, Ron Tiller, Kevin Lang.

[7] Jackie & Brian Johnson. [8] George Hewitt.

(More photos on next page)

Anthony Adds Span Calculator

Anthony Forest Products has added a lumber span calculator to its website at www. anthonyforest.com. A mobile app version for Apple and Android smartphones is also available.

Powerful Solutions uses the new southern pine design values to calculate spans and compare spans of southern pine versus other lumber species. Pull-down menus allow users to input species, grade, member type, deflection limits, spacing, and loading conditions.

Automatic defaults are set for the most common deflection limits, spacing and loading conditions when member types are changing. Clicking on the grade/span comparison calculator bar allows span comparisons between different grades of southern pine.

Building-Products.com

September 2013



The Merchant Magazine



41

UMPQUA VALLEY MILL DAYS Photos by The Merchant

MORE OREGON FUN (continued from previous two pages): [1] Allyn Ford, Eric Ford. [2] Ron & Joni Hanson. [3] Jeff Rice, Tod Kintz.

[4] Judge Godfrey, Jim Weber. [5] Tonya Joyner, Kevin Caughron. [6] Summer & Mick Baranko. [7] Troy Bailey, Scott Vigil. [8] Ryan

42



The Merchant Magazine



Owens, Brian Johnson. [9] Matt Campbell.

[10] Jim Dudley, Jennifer & Chuck Wert. [11] Jason Jacobson, Dave Manke, Brett Slaughter. [12] Dan Reeve, John Meyers. [13] Mike & Lennie Johnson, J.T. Taylor, Joe Jameson, Jim Austin. [14] Greg Pittman, Steve

September 2013

Culbertson. [15] Jim Hunt, Dixie Tibbets, Steve Swanson, Chris Swanson. [16] Gage Holland, Dave Wright, Brad Hatley. [17] Rob Brown, Bob Crews, Eric Ford, Steve Killgore. [18] Lee & Donna Greene. [19] Leslie Southwick, Kris Lewis.

Building-Products.com

ASSOCIATION Update West Coast Lumber & Building Material Association chose “Make Time for a Tropical Break” as the theme of its annual convention, Oct. 17-18 at the U.S. Grant Hotel, San Diego, Ca. A golf tournament at Coronado Golf Course will start the event, followed by an opening reception and products expo.

After a full day of informational events, attendees can enjoy a cocktail reception and president’s dinner.

Mountain States Lumber & Building Material Association will host its annual fall conference Oct. 3-5 at Hotel Monaco, Denver, Co. Rick Davis will lead a sales boot camp. Filling the talent gap will be the subject of Jim Shaffer’s talk, and Cybelle Lyon will discuss selection assessment best practices.

Social events will include a LoHi craft beer tour and a spouse’s cooking class at Panzano’s.

MSLBMDA has also scheduled an estimating workshop for Nov. 13-14 at

McCormick Place, Chicago, Il., in conjunction with Deck Expo.

Ramada Plaza Denver Central, Denver, Co. APA-The Engineered Wood Association will host its annual meeting Nov. 2-4 at the Hyatt, Huntington Beach, Ca. North American Deck & Railing Association gathers for its Oct. 16 annual meeting at Lakeside Center at

Insurers ILM, PLM Join Forces

Indiana Lumbermens Mutual Insurance Co. and Pennsylvania Lumbermens Mutual Insurance Co. have struck a deal to affiliate their companies, creating common management, shared services, and pooled reinsurance.

The newly affiliated group will be headquartered at PLM’s offices in Philadelphia, Pa., although significant operations will continue in Indianapolis, In. Current PLM president and c.e.o.

John K. Smith will serve as c.e.o. of

Los Angeles Hardwood Lumberman’s Club presented $500 grants to the winners of its 2nd annual student essay contest: Kimberly Bohannon, Kyle Fitzgerald, Chris Dingman, and Charles Buechel III. The subject of this year’s contest was the “positive and negative aspects that trees and their products have on our environment.”

the integrated organization. John F. Wolf will retire as president and c.e.o. of ILM and become a member of the board of directors of both companies.

The affiliation is not a merger.

Over time, there will be a gradual sharing of resources, but the companies’ names, brands and unique products will be preserved.

The deal is subject to approval by the applicable departments of insurance—a process that management expects to be completed by year’s end.

ILM was established in 1897—two years after the founding of PLM.

LA HARDWOODS Photos by LAHLC

LOS ANGELES HARDWOOD Lumber Association got together Aug. 10 for a BBQ and wine tasting party at the Yorba Linda, Ca., home of Jim & Tracey Gaither. [1] Anellina & Carl Henoch. [2] Kevin Tranter, Diane Johnson, Dennis Johnston. [3] Jim & Tracey Gaither, Steve & Heidi Ondich. [4] Dale Bohannon, Jim Gaither, Walter Ralston, Dan Bohannon. [5] Richard Phillips. [6] Sheree Phillips, Scott Wheeler. [7] Alan & Dana Arbiso, Marty & Randy Porter. [8] Charles Bohnhoff.

Building-Products.com

September 2013



The Merchant Magazine



43

IN Memoriam Robert Courtiol “Bob” Stockton, 67, chief financial officer for J.H. Baxter, San Mateo, Ca., died Aug. 11.

After serving in the U.S. Army in Vietnam, he worked for Kaiser Steel before joining his brother, Al, in running San Bruno Lumber Co., San Mateo, for 20 years.

operated Flint Creek in the 1960s. In 1973, they relocated to St. Ignatius and started Hunt’s Timbers.

Larry Maurer, 76, retired coowner of Maurer Enterprises, Grants Pass, Or., died July 23 in Grants Pass.

He helped run the remanufacturing plant with his sister, Lou Ann, from 1979 to 2001.

John Santo, 65, sales rep for Weyerhaeuser, Federal Way, Wa., died July 21.

Bryan Dale Ruth, 57, plumbing manager for Reedley Lumber & Hardware, Reedley, Ca., died Aug. 24.

Jacqueline Ann Hunt, 78, former co-owner of Flint Creek Lumber, Hall, Mt., died Aug. 17 in St. Ignatius, Mt. She and her husband, Ernest Hunt,

Franklin Dee Shoemaker, 80, retired 39-year employee of Meeks Lumber, Carson City, Nv., died Aug. 19.

F2M Introduces Price Benchmarks Forest2Market has introduced a National Delivered Price Benchmark as the latest addition to its Forest2Mill product line, a suite of services designed for buyers and sellers of logs and wood raw materials. The new report expands upon the transactionbased delivered price benchmarks offered in the South, Pacific Northwest, and Lake States regions of the U.S. “The National Delivered Price Benchmark provides a regional-comparative of market trends and price data that industry participants can use to remain competitive in a ‘buy local, sell global’ marketplace,” said founder, president and c.e.o. Pete Stewart. “Forest products companies sell their products on a national and

global scale, yet facilities must buy the wood raw materials needed to produce these goods from the local market.”

The report compares the differences in wood raw material costs (pulpwood, chips and sawtimber) across the three existing benchmark regions. Delivered fiber and log prices and trends are benchmarked for softwood and hardwood total fiber, by region and mill type. It also reports data on domestic sawlogs by region and species, and compares the export and domestic markets for Douglas fir and Hem-fir.

“Wood raw materials are some of the most volatile operating costs facilities face,” said Suzanne Hearn, v.p. of marketing and sales. “The National Benchmark provides insight into these

CLASSIFIED Marketplace Rates: $1.20 per word (25 word minimum). 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 “cameraready” (advertiser sets the type), $65 if we set type.

HELP WANTED

44



The Merchant Magazine



Store Clerk Stabbed to Death

An employee of Oliver’s Ace Hardware, El Sobrante, Ca., was fatally stabbed 17 times by a man who told authorities that he was “following Allah’s directions.”

The tragedy unfolded on the morning of Aug. 4, when Daymond Agnew intervened in a conversation between a customer trying to pick paint colors and employee Daniel Joseph Stone.

When Stone said he was fine helping the customer by himself, Agnew went to the back of the store and spraypainted his face black and silver—the colors of the Oakland Raiders football team.

Stone then walked to the front of the store to ask other employees to call 911. Agnew reportedly followed him, stabbed him from behind, and then ran from the store. The suspect ended up at the home of the store’s owner, Richard Oliver, where he grabbed the owner’s dog and entered the house.

After Agnew was arrested and charged with murder, he told police that “the Raiders are favored by Allah.” His previous convictions were for a weapons violation and fraudulent use of an access card.

Stone, who had worked at the store for just nine months, was described as a good-natured man who was always joking and doted on his grandchildren.

“He was a great guy and his life was ended by a random act of violence,” said Oliver.

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

Deadline: 18th of previous month.

To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.

FOR SALE

WEST COAST Industrial Lumber is currently seeking two experienced lumber broker/salespeople for domestic sales. The candidate will become part of a team with responsibility for purchasing and sales. Would like qualifications to include: Existing network of business relationships and following among customers and/or sawmills. Please send resume in confidence to lana@wcilumber.com. Please reference “MERCHANT AD” in the subject line.

variable costs, helping wood products manufacturers level the playing field between local, national and global markets.”

FOR SALE

Got your own copy?

September 2013

The

MERCHANT Magazine

Just $22 a year. Start your own subscription with our very next issue by calling Heather at (949) 852-1990 Building-Products.com

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

Ace Hardware Corp. – Sept. 11-13, fall market, Orlando, Fl.; (630) 990-7662; www.acehardware.com.

Jensen Distribution Services – Sept. 11-13, market, Convention Center, Spokane, Wa.; (800) 234-1321; www.jensenonline.com.

North American Wholesale Lumber Association – Sept. 16-19, wood basics course, Oregon State University, Corvallis, Or.; (800) 527-8258; www.nawla.org.

Forest Economic Advisors – Sept. 17, annual forest products forum, World Forestry Center, Portland, Or.; www.getfea.com.

Sustainable Forestry Initiative – Sept. 17-19, annual conference, San Antonio, Tx.; (202) 596-3458; www.sfiprogram.org.

World Forestry Center – Sept. 17-19, “Who Will Own the Forest?” conference, Portland, Or.; wwotf.worldforestry.org.

Pacific Northwest Assn. of Rail Shippers – Sept. 18-19, conference, Doubletree Airport, Seattle, Wa.; www.railshippers.com.

Tacoma-Olympia Hoo-Hoo Club – Oct. 1, meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834.

Western Building Material Association – Oct. 1, estimating workshop, Olympia, Wa.; (360) 943-3054; www.wbma.org.

National Hardwood Lumber Association – Oct. 2-4, annual convention, Omni, Fort Worth, Tx.; (800) 933-0318; www.nhla.org.

Mountain States Lumber & Building Material Dealers Assn. – Oct. 3-5, Hotel Monaco, Denver, Co.; (800) 365-0919; www.mslbmda.org.

Forest Tech 2013 – Oct. 9, Portland Airport Sheraton, Portland, Or.; www.westernforestry.org.

Black Bart Hoo-Hoo Club – Oct. 11, golf tournament & BBQ, Ukiah Municipal Golf Course, Ukiah, Ca.; (707) 621-0485; www.blackbathoohoo181.org.

DeckExpo – Oct 16-18, Lakeside Center at McCormick Place, Chicago, Il.; (866) 475-6495; www.deckexpo.com.

Remodeling Show – Oct. 16-18, Lakeside Center at McCormick Place, Chicago, Il.; (866) 475-6495; www.remodelingshow.com.

True Value Co. – Sept. 20-22, fall market, McCormick Place West, Chicago, Il.; (773) 695-5000; www.truevaluecompany.com.

West Coast Lumber & Building Material Association – Oct. 1719, annual convention, U.S. Grant, San Diego, Ca.; (800) 2664344; www.lumberassociation.org.

Construction Specifications Institute – Sept. 24-27, annual convention & show, Nashville, Tn.; (800) 689-2900; www.csinet.org.

Do it Best Corp. – Oct. 19-21, fall market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Forest Products Society – Sept. 24-27, testing & evaluation wood symposium, Forest Products Laboratory, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Building Industry Show – Oct. 20, annual show, Pasadena Convention Center, Pasadena, Ca.; (949) 553-9500; www.buildingindustryshow.com.

Southern California Hoo-Hoo Club – Sept. 25, meeting, San Dimas Golf Course, San Dimas, Ca.; (760) 324-0842; www.hoohoo117.org.

National Lumber & Building Material Dealers Assn. – Oct. 23-25, annual conference, Nashville, Tn.; www.dealer.org.

Principia Composite Decking & Railing Conference – Sept. 2829, Baltimore, Md.; www.deckrailconference.com.

Building-Products.com

North American Wholesale Lumber Association – Oct. 23-25, Traders Market, Mirage, Las Vegas, Nv.; (800) 527-8258; www.lumber.org.

September 2013



The Merchant Magazine



45

IDEA File

ADVERTISERS Index

The Old Fashioned Way

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

Tomasini’s Rex Ace Hardware & Country Store, Petaluma, Ca., has survived since 1907 by solving problems the old-fashioned way—even if that means a sale is not involved.

Here’s an example: When a customer came into the store and said the latch on her sliding door had come loose and fallen into the frame, a store employee loaned her a magnet to retrieve the latch and explained how to reattach it.

“He could have sold me the $26 kit and made money, ” recounts the customer, after returning the magnet to the store.

“I’ve always tried to be a little different,” says Jeff Tomasini, who has owned the store for 29 years. “We revolve around the homeowner. It’s good, old-fashioned service. We’ll take a lamp into the back and fix it. If we’re not swamped, we’ll do anything for you.”

Tomasini says that his goal is to “to have it all, so people don’t have to run all over town. We may not sell a hundred of certain items a week, but we don’t care. A lot of places don’t carry the things that don’t move.”

For example, the store carries fans in the winter, heaters in the summer, and canning supplies all year long.

The store is also known for treating its employees well.

“I’ve had resentment toward management,” says Tomasini of previous jobs.

“That’s not here. I don’t expect them to do anything I don’t do.” He gets there at 5:30 a.m. to sweep, re-stock, take out the trash, and clean the bathrooms, whatever needs to be done.

“I prefer seasoned employees who know what they’re talking about,” he says. “Most of my guys have had their career. They’re semi-retired and know their stuff.”

The country store half of the business is run by Tomasini’s wife, Gro. “We’re two stores in one,” he says. “She keeps trying to encroach on my space.”

When the store burned in 2006, Tomasini was “astonished and touched” by how much the community cared and how badly they missed the store. “I knew they got what we’re trying to do here,” he says. One of the many signs tied to the fence that surrounded the charred ruins read, “Hurry up, Jeff. I need a new toilet plunger.”

When it came time to rebuild, Tomasini was determined that the new store be as much like its old-fashioned predecessor as possible. As an example, fewer nails were used during installation of the hardwood floor, so it would creak like the old one had. “Although the feel isn’t quite the same, it’s close,” he says. He also “hides” the computers and prices items with a tag, which are rung up by hand.

“Shopping’s supposed to be fun,” he says.

“Sometimes I sit up here in my upstairs office and it sounds like a party down there.”

46



The Merchant Magazine



September 2013

Advantage Trim & Lumber [www.advantagelumber.com]..........41 Allweather Wood [www.allweatherwood.com] ............................23 Big Creek Lumber Co. [www.big-creek.com]...............................24 Building Material Distributors [www.bmdusa.com] ....................21 Building-Products.com [www.building-products.com] ....Cover III Cal Coast Wholesale Lumber ........................................................38 California Redwood Association [realstrongredwood.com] ......26 California Redwood Co. [www.californiaredwoodco.com] ........29 Capital [www.capital-lumber.com]................................................30 Fontana Wholesale Lumber [fontanawholesalelumber.com].......4 GRK Fasteners [www.grkfasteners.com].....................................28 Huff Lumber Co. .............................................................................20 Humboldt Redwood [www.getredwood.com] ..............................23 Idaho Forest Group [www.idahoforestgroup.com] .......................5 Keller Lumber .................................................................................36 Maze Nails [www.mazenails.com]...................................................7 Mendocino Forest Products [www.mfp.com] ..............................23 Norman Distribution Inc. [www.normandist.com].......................13 North American Wholesale Lumber Assn. [nawla.org]......Cover II Nusku Partners [www.nuskufireblocker.com]...............................3 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....35 PrimeSource Building Products [www.primesourcebp.com] ....22 Redwood Empire [www.redwoodemp.com] ........................Cover I Roseburg Forest Products [www.roseburg.com] .......................39 RoyOMartin [www.royomartin.com] .............................................31 Royal Pacific Industries .................................................................15 Simpson Strong-Tie [www.strongtie.com]...................................27 Siskiyou Forest Products [siskiyouforestproducts.com]...........37 Stimson Lumber Co. [www.stimsonlumber.com] .......................19 Swanson Group Sales Co. [swansongroupinc.com]........Cover IV TAMKO Building Products [www.evergrainchallenge.com].......25 Universal Forest Products [www.ufpedge.com]..........................33 West Coast Lumber & Bldg. Material Assn. [lumberassociation.org].45 Western Woods Inc. [www.westernwoodsinc.com]....................11

COMING NEXT MONTH in the October issue of The Merchant Magazine

NAWLA Traders Market Preview Building-Products.com

Visit The ALL-NEW

Building-Products. com

• More news • User-friendlier layout • Frequent updates throughout each day • Smartphone & tablet accessible • Improved search features • Event photos • Videos • Surveys • Building products stock ticker

The

MERCHANT

Magazine