THE YEAR IN OSB VERSATILE REDWOOD WESTERN RED CEDAR SALES TOOLS
The
MERCHANT
SEPTEMBER 2014
Magazine
THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
September 2014 OUR VALUE PROPOSITION 2014
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9 INDUSTRY TRENDS
BUYERS ADJUST TO HIGH MDF PRICES
10 FEATURE STORY
OSB MAKERS KEEP PRODUCTION HIGH DESPITE SLIPPING PRICES
12 MARGIN BUILDERS
DEALERS HELP SHAPE WESTERN RED CEDAR SALES TOOLS
14 PRODUCT SPOTLIGHT
ON DISTRIBUTI NDABLE 2. DEPE
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Special Features
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20 NAWLA–THINKING AHEAD
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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 796-560) 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®2014 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.
September 2014
In Every Issue 6 TOTALLY RANDOM 16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES 30 MOVERS & SHAKERS 34 APP WATCH 35 MANAGEMENT TIPS 38 FAMILY BUSINESS 40 NEW PRODUCTS 51 ASSOCIATION UPDATE 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX
Online BREAKING INDUSTRY NEWS, EVENT PHOTOS, & DIGITAL EDITION OF THE MERCHANT
BUILDING-PRODUCTS.COM Building-Products.com
TOTALLY Random By Alan Oakes
The
MERCHANT
Magazine
www.building-products.com
A publication of Cutler Publishing
Hey, I’m not dead yet!
I
of you were able to get a break this summer and enjoy some time off. I was fortunate to return to Europe to visit family. The EU economy still does not feel quite right or strong. Coupled with the issues in Putinland and the Middle East, I am concerned about an impact here in the short- and mid-term. Certainly, other nations look to a strong U.S. economy to pull them through. Being back in the Old World provides a perhaps appropriate opportunity to get a few things off my aging chest. Yes, sometimes it is no fun getting old. Yes, my doctor is my new best friend, my back aches, I nap after dinner, I forget things, the waist line gets bigger, and the elastic waist band is a relief, but I am still the bundle of joy I have always been. I may no longer love everything the young do, but I am pretty good with technology, still sing the latest hits on my way to work (badly), I still like to party (as some of you can attest), and I am often the last to leave at the end of the night! So I recently read that there are 100 million of us over 50 in this country and that we possess more than 70% of the disposable income. We buy two-thirds of the cars, over half of the computers, and we pay the stars’ exorbitant earnings by buying over a third of all movie tickets. We love to travel (about 80% of premium travel) and we have found the likes of Amazon by buying $7 billion online. Indeed, if we were a country, our age group would represent the world’s third largest economy. In my household, we fit all of the above profiles. We like to go out and eat. We continue to spend a small fortune remodeling the house. We also try to do our best to support the local economy. So why the column? Well, according to most marketers, we do not exist. We do not count. We have been written off! And I am not going to take it anymore! Everyone markets to the young, which is fair enough, but why forget us? Many of us will be living until our mid-80s (well, that is what I am planning for and hopefully longer) and there will be a lot of spending between then and now. Stats show that despite being a third of the economy, our age group is targeted by just 5% of market spending. What a mistake! Nielsen calls our generation “the most valuable generation in the history of marketing.” With a projection that our 50+ age group will grow by 34% between now and 2030, it appears that companies are missing out big time. When the term “baby boomers” was coined back in the 1970s, we were the ones viewed as spenders who shunned the frugal life of our parents. Guess what, that has not changed. We still spend, we still travel, we still eat out, we still have our memberships to all types of organizations, we still use technology, we still buy cars, we still repair and improve our homes (I’m tiling two rooms now), we still read newspapers, we still watch television, and now you find us on the web, too (and since we often have more free time, we are easily marketed to). There is no reason I do not want to buy the latest headset or laptop. Have you ever seen our age group in an ad for a sports car? We may have 50 shades of gray, but in reality advertisers only have eyes for 18to 30-year-olds. Admittedly, what we may buy might be different than other generations, but we can make an awful lot of money for those who recognize our value. Again, the 50- and 60-year-olds of today are the 40- and 50-year-olds of yesterday, with our improving longevity and longer active years. So enough, I argue, as I head off to physical therapy. HOPE MOST
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 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.
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September 2014
Building-Products.com
INDUSTRY Trends Medium Density Fiberboard
Buyers adjust to rising MDF prices
B
it trickier to procure medium density fiberboard, as resurgent demand causes prices to rise, according to a new IBISWorld report. “Growing demand for MDF has allowed suppliers to increase their prices, lowering buyer negotiation power,” explains IBISWorld procurement analyst Jesse Chiang. She gives MDF a buyer power score of 2.9 out of 5, reflecting moderate negotiating conditions for buyers. MDF price movements depend largely on residential and nonresidential expenditure levels, as well as private spending on home improveUYERS ARE FINDING
ments—all of which have grown sharply over the last three years. Rising prices are restraining buyer power because buyers are less able to delay contractual decisions with prices increasing continuously. Instead, buyers must negotiate contracts to lock in lower prices. Prices are forecast to grow substantially over the three years to 2017, which will continue to reduce buyer power in the coming years. Price increases for inputs such as lumber also led to price growth for MDF, limiting negotiation flexibility for suppliers that struggled to maintain profitability. Consequently, buy-
MDF PANEL buyers facing rising prices do have a few options, including finding substitute goods, switching suppliers, and improving inventory planning. (Photo by Fordac) Building-Products.com
ers are left with fewer opportunities to arrange favorable deals and negotiate lower prices. Additionally, moderate market share concentration and product specialization have created a tougher purchasing environment for buyers. “Large, vertically integrated operators have significant market power, while moderate product specialization reduces buyers’ ability to locate suppliers capable of satisfying their specific product requirements,” says Chiang. Nevertheless, buyers do have some considerable advantages. The high availability of substitute goods ensures that buyers are not forced to accept major concessions in their contracts because of their ability to switch to other suppliers that distribute alternative building materials. Secondly, low switching costs limit suppliers’ ability to charge higher prices. Lastly, despite high demand driver volatility, volatility in prices for MDF products has been low. This factor has benefited buyers by making inventory planning and budget forecasts easier. MDF is an engineered wood product made of a mixture of wood fibers, resin and wax. It does not have knots or grain patterns, making it easy to work with in many building applications. Due to its strength and comparatively low cost, furniture manufacturers use MDF as a substitute for hardwood products. The top four MDF vendors are Louisiana-Pacific, Weyerhaeuser, West Fraser Timber, and Plum Creek Timber.
September 2014
The Merchant Magazine
9
FEATURE Story The Year in OSB
OSB makers keep output high despite slipping prices
T
HE PAST 12 months have seen OSB manufacturers maintaining high production levels, gambling on a resurgent housing market. According to Random Lengths, so far this year, North American OSB production is up 8.4% compared to the first six months of 2013. Yet, without the expected spike in demand, over the last 18 months, the OSB Composite
Price has fallen nearly in half—from $438 at the start of 2013 to $233 in early August. (During the same period, plywood prices rose.) Industry leader LOUISIANAPACIFIC, Nashville, Tn., operates 11 OSB plants in the U.S. and Canada (plus one in Brazil and two in Chile), generating net OSB sales in 2013 of
OSB PRICES surged last year, causing mills to ramp up production—and keep them running at high levels, despite declines in 2014. (Photo by LP)
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$1.1 billion (representing over half the company’s overall sales). LP appeared poised to grow even larger, with its planned acquistion of Ainsworth Engineered’s four plants. The deal would have given LP a 63% share of the OSB market in the Pacific Northwest and a 55% share in the Upper Midwest. But in May, after eight months of wrangling with governmental antitrust concerns, LP abandoned its takeover bid. “We believe this transaction would have led to positive outcomes for customers, employees and shareholders, and fundamentally disagree with the analysis by antitrust agencies of the competitive dynamics of our agency,” said LP c.e.o. Curt Stevens. In other OSB news, LP’s Peace Valley mill in Fort St. John, B.C., hopes to gain approval by the end of this year to use a new type of wood resin—MDI (methylene diphenyl diisocynate) rather than formaldeyde. NORBORD, Toronto, Ont., owns nine OSB facilities in North America, plus one each in Belgium and Scotland. In 2013, its OSB mills produced at approximately 75% of installed capacity, compared to 70% in 2012. North Amerian OSB shipments rose 7%, with 2014 expected to be even busier. Norbord restarted its OSB mill in Jefferson, Tx., in mid-2013 and ramped up to full capacity by the fourth quarter. It is also rebuilding the press line at Building-Products.com
its curtailed Huguley, Al., mill to prepare it for a possible restart in mid2015, if demand increases. The company is not planning to restart its mill in Val-d’Or, P.Q., this year, but will continue to monitor market conditions. “In North America, homebuilding activity continues to improve,” said president and c.e.o. Peter Wijnbergen. “But the pace has been held back by labor availability and a lack of entrylevel buyers, and OSB prices have been disappointing.” WEYERHAEUSER, Federal Way, Wa., saw its six North American OSB plants increase production by 8.44% last year, from 2.511 billion sq. ft. in 2012 to 2.723 billion in 2013, reaching 90% of capacity. Sales rose 10.5%, from $2.508 billion in 2012 to $2.772 billion in 2013. Sales kicked off a notch behind in 2014. “Severe winter weather dampened the start of the spring building season,” said Doyle Simons, who became president and c.e.o. last year. The year has marked one milestone—Weyerhaeuser’s OSB mill in Edson, Alb., is celebrating 30 years of operation, reportedly making it the first OSB plant in Canada to do so. AINSWORTH ENGINEERED, Vancouver, B.C., is regrouping, following the collapse of the proposed acquisition by LP. In 2013, Ainsworth’s four Canadian OSB plants generated sales of $488 million—19.2% higher than 2012, thanks to significantly higher OSB prices. Production was, however, slightly down (0.7%) compared to the year prior, due to maintenance downtime and transportation issues. Late last year, the company restarted its OSB mill in High Level, Alb., which had been indefinitely curtailed six years ago. The company also recently reintroduced two popular OSB products under its new OSC XL brand: OSB XL 9 ft. and 10 ft. panels in multiple thicknesses and custom lengths. HUBER ENGINEERED WOOD, Charlotte, N.C., owns five OSB mills. GEORGIA-PACIFIC, Atlanta, Ga., has been operating six of its nine OSB plants. Its mill in Skippers, Va., was mothballed three years ago, while plants in Grenada, Ms., and Mt. Hope, W.V., were shut down three years ago.
Building-Products.com
TOLKO, Vernon, B.C., is back up to three operational OSB plants, with the restart of its Athabasca mill in Slave Lake, Alb. The huge facility, which opened in late 2008 before closing months later due to poor market conditions, restarted in December 2013 and is expected to reach full production capacity by the first quarter of next year. Late last year, Tolko also acquired full ownership of the Meadow Lake OSB mill in Meadow Lake, Sask., per the terms of its original limited partnership contract signed in 2001 with the government of Saskatchewan and
several aboriginal stakeholders. ROYOMARTIN, Alexandria, La., is moving into its seventh year of operation at its OSB facility in Oakdale, La. The company has been FSC-certified by the Rainforest Alliance since 2002, and has completed 2014 FSC chain-of-custody and forest management annual audits with the alliance. ARBEC FOREST PRODUCTS, St.-Leonard, P.Q., operates an OSB mill in St. Georges de Champlain, P.Q., which was idled from Aug. 2-21.
YOU COULD SPEND A LOT TO GET THE LOOK OF REAL CEDAR, OR YOU COULD JUST USE
REAL CEDAR
Plastic, vinyl and cement composite materials often try to mimic the look of real western red cedar, but never pull off the rich, natural depth and lustre of the real thing. And not only can Real Cedar be far more affordable than man-made building materials, it’s also lighter and easier to work with, durable, naturally rot and pest resistant, and available in a wide range of grades, profiles and sizes to give you the exact look and style you want. For the look of the real thing, there’s still only one real choice: Real Cedar.
QUALITY | SUSTAINABLE | CERTIFIED
westernforest.com
www.realcedar.com
For your local distributor contact: 604 648 4500
1 866 778 9096
September 2014
The Merchant Magazine
11
MARGIN Builders Western Red Cedar
Dealers help shape western red cedar sales tools
RETAILERS and consumers can draw on a range of collateral material, installation guides, and specifying guides to sell more western red cedar. (Photos courtesy WRCLA)
F
annual general meeting in Kelowna, B.C., the Western Red Cedar Lumber Association invited six retailers with broad regional representation to an open panel session and discussion on evolving business trends. This group of industry experts responded to a list of prepared questions designed to explore the role of the retailer and identify areas of opportunities to impact western red cedar’s competitiveness and facilitate sales on the OR ITS RECENT
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retail floor. The panel consisted of Mike Dunn, president of Dunn Lumber, Seattle, Wa.; Skip Dierdorff, Northwest area manager for Alpine Lumber, Steamboat Springs, Co.; Rob Myckatyn, inventory manager and purchaser at Standard Building Supplies, Burnaby, B.C.; Tim Priddle, president of The WoodSource, Manotick, Ont.; Sean Stevens, owner of M&M Lumber, Tulsa, Ok., and Shane Smith, president of Speonk Lumber, Speonk, N.Y.
September 2014
Each member of the panel was given four questions prior to the session that covered areas on how western red cedar is faring relative to overall sales; changes in the role between retailer, distributor and supplier; resources that would help their sales force sell WRC, and steps needed to improve returns on WRC sales and capitalize on rising demand trends. As would be expected given the breadth of retail locations and types of businesses, the answers covered a lot of ground, but the information that came from the discussion provided excellent insights into improving WRC sales, and created the foundation for an actionable plan—appropriately called the WRCLA Retailer Response Plan—for the association to move forward with. There was unanimous agreement from the panel (and members of the audience) that any plan to help sales at the retail level needs to reach the customer prior to them walking into the store. As most of us in retail can attest, when a builder or d-i-y homeowner walks into a retail location, the majority will already have a shopping list of materials in hand, and aren’t likely to change their decision over what they already have in mind. Knowing this, WRCLA developed online surveys and research targeting three audiences—d-i-yers, custom home builders, and architects—to better understand each group’s awareness Building-Products.com
of WRC’s range of uses and applications, the factors of greatest importance to them (e.g., natural beauty, affordability, etc.), and how to make it easier to specify and use in design and application. The research results will be used to better develop messaging and programs “to put WRC on the shopping list” before the customer walks into the store. As to the resources that directly engage the retailer, the WRCLA and its advertising agency, Bare Advertising & Communications, developed a host of tools that can be tailored to each retailer’s or distributor’s specific needs. Here’s an example of what’s available to service affiliate members:
Online Content Integration
WRCLA’s website, RealCedar.com, has a wealth of information to help consumers choose WRC over other products and specify materials. This content is made available for integration into the retailer’s website. It can be designed as a single page, added to existing materials, or even become its own microsite.
Cedar 101 Video
A short, consumer-friendly “Everything You Wanted to Know About Cedar” video is being developed for use on retailer sites to help specify WRC. It illustrates the difference between clear and knotty, shows popular dimensions and suggestions for decking and siding, provides a brief overview of cedar’s green benefits, and can link the consumer to product-specific pages on the retailer’s site.
Real Cedar Retail App
WRCLA is releasing a pilot launch of its retail training application that will help retailers and consumers specify Real Cedar (WRCLA’s branded products).
Take 5 Training Curriculum
Short, FAQ-style quick-tip mini cards are available to retailers and staff for self-administered training and tests.
Real Green Promotion Program
With the growing consumer interest in environmentally friendly products, WRCLA recently launched its Real Green program to address common misconceptions about western red cedar’s green qualities against competitive composite products. Materials include educational handouts and video content backed by Life Cycle Assessments and Environmental Product Declarations highlighting WRC’s position as king of green building materials.
CONTENT from RealCedar.com can be integrated onto retailers’ own websites.
Increased Retailer Presence on RealCedar.com
Consumers can already use the retailer locator on RealCedar.com to find the member closest to them, but a number of new tactics are being employed, such as online editorial content with the retailer, case studies, and blog content to further connect the consumer with the retailer.
Online Video Library
WRCLA has a growing collection of how-to, FAQ, and informative videos on RealCedar.com and its YouTube channel that can be linked to retailers’ sites.
Online Retail Resources
Downloadable retail resources on RealCedar.com, such as co-op ad mats, print-ready marketing materials, and training resources are available on demand. It’s a program that should be worthwhile following as WRCLA takes proactive steps to grow WRC’s competitiveness and value position in an evolving market. HOW-TO VIDEOS on RealCedar.com’s YouTube Channel can be linked to or hosted on retail sites. Building-Products.com
– To learn more about WRCLA’s Retailer Response Plan and progress, attend the WRCLA-hosted session Nov. 14 at NAWLA’s Trader Market in Chicago or contact realcedar.com/contact. September 2014
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PRODUCT Spotlight By Charlie Jourdain, California Redwood Association
Redwood enhances the beauty and lasting quality of any project
H
AVE YOU ,
or any of your friends in the business, ever been approached by a customer who says, “That composite deck is just beautiful! I can’t wait to get some chairs or a garden bench made out of the same stuff.” I didn’t think so. Compared to redwood, which is naturally beautiful and durable, with a structural integrity that can’t be replicated, composite lumber suffers. It’s no wonder that redwood is used in a wide variety of home projects, while composite lumber just is not. In fact, redwood is the ideal wood product for just about any home project—indoors or out. With its natural resistance to shrinking, warping and checking, using redwood lumber on your project means you built it to last a long, long time. Whether the project is furniture, cabinetry, planters, fences, trellises, pergolas, buildings, and, of course, decks, there are a wide variety of redwood boards, siding and timbers for almost any application suitable for wood. And since redwood is naturally durable, it is the ideal choice for use in garden beds, planter boxes and greenhouses for organic gardens. For professionals working with redwood, they’ll agree that redwood as a product provides greater flexibility of application than man-made products. It’s a material that’s easier to cut, won’t bend or warp, and can be left natural or stained to complement a customer’s chosen color palate. Over the years, redwood can be restored repeatedly with minimal effort and cost. Not only is it beautiful to look at and beautiful to work with, redwood is also a beautiful thing for helping the envi-
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ronment. You can’t say the same thing about composite lumber. Compare the energy consumed to harvest and manufacture redwood (a renewable resource) to the process required to produce plastic/composite decking (consuming nonrenewable oil resources), and it’s pretty clear that a natural product is far preferable. Consider: Redwood trees need soil, sun and water to grow. No oil wells are drilled for raw materials that a plastic-composite deck needs. As these trees grow, they capture and store carbon, essentially cleaning the air around them. That carbon is locked in; even after harvesting and milling, a redwood deck retains that carbon. A plastic-composite deck consumes 15 times more energy than a redwood deck—and 87% of that energy comes from nonrenewable fossil fuels, a major source of carbon emissions. Even when redwood lives out its usefulness, the lumber is biodegradable, returning to the earth to help make more trees. Composite decking is not recycled; it is often sent to the landfill. Redwood can inspire great ideas, and then be the perfect material to make that idea reality. The versatility and durability of redwood is a quality that can’t be matched in nature or a laboratory. For the project that may be just the beginning for a customer, recommending redwood ensures the look and feel of the project will be consistently harmonious, start to finish. – Charlie Jourdain is president of the California Redwood Association. Reach him at charlie@calredwood.org or (888) CAL-REDWOOD. To learn more about redwood, visit www.calredwood.org. Building-Products.com
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COMPETITIVE Intelligence By Carla Waldemar
True to their roots
I
T’S A LUMBERMAN’S version of Back to the Future. In 1946, Benny Friedman opened a building center in Petaluma, Ca. In 1971, he launched a second Friedman’s Home Improvement in nearby Santa Rosa, shuttering the Petaluma site when the building’s dilapidated state and insurance hassles forced a decision upon him. By 1993, his son Bill—next up at bat—had opened a store in Sonoma, then another in Ukiah in 1996. But a soft spot remained in everyone’s heart Petaluma, where it all began. Well, as they say in the movies, they’re baaaack! After years of watching, scouting and waiting, a suitable location at last arose when a proposed Lowe’s failed to materialize. Backed
by strong support from the town fathers, Friedman’s in Petaluma’s new Deer Creek Valley Shopping Center opened in May—in time to welcome Bill’s son, Barry, as the company’s new president-cum-c.e.o. (Bill retains his seat on the board and post as premier mentor.) So, full circle: Store #4 re-blossoms in location #1. Never mind that Barry is just 30something. He’s been around the block a time or two. Just as his dad did before him, he grew up sweeping sawdust, bagging purchases, and corralling carts. But, after earning a business degree in college, wild oats prevailed over white pine. “I spent three years on the NASCAR team in North Carolina, then with a whitewater raft-
ing outfit in Montana. But I always knew I’d come back. When my folks called, in 2004, and said, ‘No pressure—but we’d love to have you,’ that sealed it. “I started from the ground up, cashiering, then spent time in each department, including the support functions,” gaining more and more responsibilities, including assisting with the remodeling of the Sonoma store, Barry says. He earned a management position in 2008, then advanced to v.p. of operations the following year. So when the time came, with the blessing of his dad, he took the helm of the whole enchilada. “I’d been mentored by so many here, and they all believed in me, or I would not be in this position.” His management style is all his own. “My grandfather was a people person, loved the place. And Dad’s a products guy, an amazing merchant.” For Barry, it’s all about the staff, 600strong by now. “I believe in the team concept (I was captain of my college football team)—doing things together, seeing people grow. We’re in the relationship business,” he denotes his line of work. “We’ve built a strong reputation in the community for honesty, treating the customer right, and people appreciate that. We do business like it used to be….” That works, and works well, if the staff has absorbed the message. At Friedman’s, that critical criterion is achieved “through modeling—how to handle situations. And,” Barry is quick
WIDE OPEN layout makes the new store pleasant to shop in and easy to navigate.
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to acknowledge, ensuring that the company’s ethos is passed on and absorbed by its employees “gets harder and harder as you grow.” With the addition of the Petaluma store, staff surged from 400 to 600—“so it came down to, how do you translate that to the new hires? (We hired in all our locations.) We looked for attitude, rather than skills or experience—the desire to be here! We decided to have one designated person screening all applicants before sending the best-qualified on to the managers, to find the right fit for the culture.” The new Petaluma complex has an 85,000-sq. ft. footprint, which includes a dry shed and greenhouse. In designing it, what lessons were addressed that had been learned in the three existing stores, a reporter queried. Says Barry, “We knew we wanted to go in with a full offering for our customers, to build that expectation. Having an outdoor lumberyard was a critical factor for us, because we serve a dual path—retail (60%) and pro (40%). We needed that [yard] for the contractors, to compete with the boxes: accessibility of product. But, we’d also learned, that very factor can be intimidating for retail consumers. So we located the dry shed closer to the main store than in our other locations. It’s reached by a short path—really, just an
LIVING WALL of greenery at Friedman’s new location in Petaluma, Ca., has quickly become the talk of the town.
C.E.O. Bill Friedman is transitioning leadership of the chain to son Barry.
extension. But”—a savvy “but”—“we still have a contractor entrance, with special parking, for a quick in and out. “SKUs were enhanced in some departments, but some are displayed differently,” including the new Express Yard on Display feature—a 68-ft. display corridor of products actually out there waiting in the lumberyard, planned with the aim creating a “less-intimidating feeling. The customer is inside, looking at it, before heading outside. Unique!” Barry exclaims. Another innovation: a mezzanine level of 4,500 sq. ft. devoted to kitchen and bath. “In our other locations, they were right on the retail floor. But we felt that, by changing that environment, it would offer a different experience—no distractions, more intimate, no shopping carts. Plus,” he adds in a smart merchandising move, “we elevated the level of products up there—another move to improve the customers’ experience”—and, ahem, profit. Adding to that experience, the whole layout is more open. “It’s easy to clutter a store,” Barry knows. “You want to sell product, fill the space. But we were very disciplined. So you walk in, look left, look right, look ahead, and it’s Building-Products.com
not a maze. It’s easy to navigate. Plus there’s lots of bright signage and super-graphics, like the ones depicting scenes of Sonoma County. Others sell the ‘dream,’ like in our outdoor living section.” And customers love it. But, let’s face it, what they’re talking about most is Friedman’s new Living Wall: four of them, actually, planted in greenery. They were planned to break up the building’s concrete facade, but—bonus—pull their weight as a marketing tool, too. “They’re beautiful, they’re dramatic, and they’ve turned into a destination. People drive over to see them.” And see what’s within, of course. Plus, Petaluma is the poster town for uber-green California, “so it shows what we, as an organization, represent in environment-friendly products, too.” The recent grand opening party sounded just as Californian: 900 guests—staff, vendors, key community members—at the preview event. “Petaluma’s been an under-served market, and we’d tried to come back to town for years.” When that dream was finally realized, it represented an emotional moment for all the Friedman’s clan. So, what’s next? Or, is there a next? “Having a fourth location definitely changed the organization to be more efficient in how we handle things. But”—short answer—“yes, we’re always looking for opportunities to pursue farther out.” And there’ll probably be another generation of Friedmans being groomed to step in. Barry’s fourth child was born two weeks before the fourth store opened. I’m just sayin’…. Carla Waldemar cwaldemar@comcast.net September 2014
The Merchant Magazine
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OLSEN On Sales By James Olsen
The spirit of the salesman
A
S SALESPEOPLE, we need to be confident. Confidence inspires confidence. If we are confident in what we say, our customers will feel and believe it. This will help them relax enough to listen to us. So many sellers can’t even get their (potential) customers to speak to them, much less listen, because their approach is too humble or nervous. The humble may inherit the earth, but they are going to inherit it from a salesperson who was bold enough to ask for it first. Humble salespeople confuse being humble with being respectful and suffer for it. Humble is easy to say no to. Confidence alone is not enough. Great sellers are bold. They ask for things, even when they are told those things aren’t available:
The Buyer
Us: “May I speak to the buyer please? Reception: “She is on the phone right now.” Us: “That’s fine, I can wait a little bit. How are you today?” (Friendly banter ensues—the rare and subtle art of the master seller.) Reception: “Oh, she’s free. Let me put you through.”
The Order
Us: “John, we just bought a block of 2x4 16’s out of Big Timber. We’ve already sold five to market-savvy customers. How many can you use?” Customer: “I can’t afford to pay the premium for 16’s, but what’s your price?” (This is where the Quotron gives the price and then says, “Okay.”) Us: “The price is the good part. If you think you can’t afford 16’s now, wait until they run another $50/MBF. Let’s put at least two of these on to protect you from this market and help you make money while we do it.” Customer: “Alright, give me one of those.”
More
Customer: “Okay, I’ll take one of those at $450.” Quotron: “Thanks for the order.” Us: “John, I don’t think one is going to be enough. You only buy great deals, so this must be one and since that is true, we should put on at least five.” Customer: “You’re right, but five is too many. Give me an extra two for a total of three.”
Persistent & Consistent
Salespeople who struggle are afraid of being pushy.
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Master sellers don’t even think about it. There are salespeople who are too pushy, but they are rare. Unless you are a statistical anomaly, you are not too pushy, probably the opposite. We don’t need to be pushy. We need to be persistent and consistent. We need to call on our customers and promote product to them in a persistent and consistent way. Many sellers only call their customers with deals. This makes them the deal supplier, not the main supplier. When we are in sync with our customers, we can sell into their need. When we call willy-nilly, all we can do is offer them deals. This is called chasing. Chasing orders/selling deals are part of what we do as market-driven sellers. But we also want the “relationship orders.” These orders go to the salesperson who calls in a persistent and consistent way.
The Spirit of the Possible
In many cases, “We have reached our conclusion” just means “We have stopped thinking.” Too many sellers are hiding behind the truth. Master sellers find a way. They use creativity and imagination to structure the deal so it works for everyone. Sawmill/wholesaler/distribution organization has a carload of 2x4 14’s that needs to be gone—today! Quotron: “I talked to my guy. He can’t use 14’s.” (This is a truth, but a worthless one. This is like a Marine at war saying his tummy hurts. It may be true, but it doesn’t help us win.) Us: “My guy couldn’t use 14’s, so I sold them to him on a 12’ count. It was a bit of a counter, but they’re sold.” The fact (master sellers ignore these annoying things sometimes) is that both customers above can’t use 14’s. It is also a fact that the second customer bought a load of 14’s! Many sellers think they are in the fact business, while master sellers realize they are in the possible business. It’s just talking, right? Wrong. Salesmanship takes a certain spirit—the spirit of a salesman. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
THINKING Ahead By Carl Lamb, General Manager, Snavely International
Understanding and navigating freight challenges
I
N 2013, TRUCKS MOVED 69.1% of all domestic freight tonnage, up from 68.5% the previous year. Over the past decade, moving this freight has become increasingly difficult. High driver turnover, a decrease in the number of owner-operators in the trucking industry, and elevated service demand have amplified existing problems such as increased government regulations, a current driver shortage, and increased costs of transportation. The most significant changes in government regulations that went into effect July 2013 are adjustments in the legal hours of operations. The new rules include a 34hour restart period, which must include two periods from 1:00 a.m. to 5:00 a.m. home terminal time that may only be used once per week and are measured from the previous restart period. Additionally, a driver may only drive eight hours after the last off-duty time or sleeper berth period of at least 30 minutes. If a driver is stopped at a delivery location and not in his sleeper berth, it is now considered on-duty time and will not count towards his 30-minute break. Longhaul drivers are typically paid by the mile, so the change in rules has meant that drivers are on the road longer without any extra pay. The regulations reduce the number of hours a driver can work, increase the number of required breaks, and add significant costs to the trucking industry. Today there is also a truck driver shortage. According to the Bureau of Labor Statistics, the average age of a commercial driver is 55. Many younger would-be drivers are drawn to construction and other jobs that pay more. The Bureau of Labor Statistics list the median wage of a
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tractor-trailer driver at $38,200, which is 11.8% lower than the average U.S. wage, and drivers’ wages are increasing more slowly than other wages. Drivers are typically away from home for long periods and are restricted by new regulations. This limits the amount of income a driver paid by the mile can earn. Additionally, American Trucking Association (ATA) chief economist Bob Costello states, “At the moment, we already have 30,000 unfilled jobs for drivers in the trucking industry. As the industry starts to haul more, because demand goes up, we’ll need to add more drivers—nearly
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A Special Series from North American Wholesale Lumber Association
100,000 annually over the next decade—in order to keep pace.” Because drivers are in such demand, the trucking industry is experiencing an extremely high turnover rate. ATA reported that turnover at large carriers is at 91% and has been there or above for the past eight quarters. A large carrier that has 200 drivers will replace 180 of those drivers in the next 12 months. Further complicating the search for qualified drivers are the Compliance, Safety, Accountability (CSA) regulations introduced in December 2010. Carriers that employ drivers with a history of safety violations or accidents are subject to increased inspections and a lower score. With fewer entrants into the trucking job market, the industry must change. Many independent carriers and smaller trucking companies have gone out of business due to the increased costs associated with trucking. Diesel fuel has risen from $1.81/gallon in 2004 to $3.92/gallon in 2013. During the recession, there was price pressure on all goods and carriers had a hard time implementing fuel surcharges for the freight they haul. The government is proposing that all trucks be equipped with electronic logs. On August 1, 2013, the Obama Administration announced a proposal to eliminate “the burdensome daily paperwork required for professional truck drivers.” Unfortunately for small or independent carriers, retrofitting equipment with electronic logs will be expensive and add annual per unit monitoring fees. Beyond fuel and regulation costs, truck operation costs are affected by regular repairs to damaged equipment caused by deteriorating roads; taxes and tolls to pay for
repair of infrastructure; and the insurance and equipment required to meet security, safety and environmental requirements. The additional costs associated with trucking are resulting in fewer independent and small carriers that are a viable source for moving freight. Snavely International has responded to these challenges in recent years by increasing its driver fleet. We have found that by paying more than the median wage, turnover decreases and we have greater control. In the past year, we also registered with the Federal Motor Carrier Safety Administration (FMCSA) and obtained a United States Department of Transportation (USDOT) number. This allows us to pick up and be paid for return freight. While it opens us up to increased regulations, we anticipate the benefits will outweigh the costs. However, it is clear that the only foreseeable outcome to the increased government regulations, driver shortage, and increased cost of operations will be an increase in the cost of freight. Increased costs to carriers are reflected eventually in increased prices for freight paid for transportation. If you would like to hear how other companies are responding to these freight challenges, please join me and other NAWLA members at the Leadership Summit, March 24-26, 2015, at the The Westin Kierland in Scottsdale, Az. In addition to numerous opportunities to connect with peers from across North America and hear their perspectives on transportation challenges, the program will include educational sessions on this topic. Additional details are available at www.nawla.org. – Carl Lamb is general manager of NAWLA member Snavely Forest Products, Westminster, Md.
Next Month: Traders Market Preview Next month’s October issue of Building Products Digest will feature an in-depth Traders Market Preview promoting the NAWLA Traders Market Nov. 12-14 in Chicago. The Traders Market is North America’s premier lumber tradeshow, delivering access to the entire supply chain under one roof. Whether you want to sell your product, find new suppliers, or expand your network, you’ll find the opportunities and visibility you need at the Traders Market. The site is the newly renovated Hyatt Regency Chicago. Registration is now open. NAWLA members can receive discounted access to the event.
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September 2014
The Merchant Magazine
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CRC Parts With Remans
As it moves away from redwood lumber production, California Redwood Co., Arcata, Ca., has parted with two of its California remanufacturing plants and is evaluating the best use of its third. Redwood Empire, Morgan Hill, Ca., has taken over CRC’s Woodland, Ca., distribution center and reman facility. Cerro Pacific Lumber, Redwood Valley, Ca., purchased the equipment at CRC’s Ukiah, Ca., reman plant and assumed the lease at the facility. CRC continues operating its large drying and reman facility in Brainard, Ca., located between Arcata and Eureka. According to president Doug Reed, “after the end of the year, we will evaluate the best use of our Brainard facility. Brainard has a great deal of capacity and flexibility, as well as a seasoned workforce, but our need for it will be reduced dramatically as we exit primary manufacturing of redwood lumber.”
Calaveras Buys J.S. West
Calaveras Lumber, Angels Camp, Ca., acquired fellow Ace Hardware dealer J.S. West Lumber & Hardware, Sonora, Ca., effective Sept. 4. J.S. West general manager David May called the deal “a perfect fit,” explaining that the West family was looking to return to its core businesses of egg and propane production, while Calaveras Lumber has wanted to expand to Sonora ever since the local Andy’s Home Center closed in 2011. May noted there were no plans to enlarge the store, but the lumberyard will expand the quality and types of lumber it stocks.
Seneca Starts Mill Overhaul
Seneca Sawmill Co. has begun a two-to-three-year upgrade of its dimension sawmill in Eugene, Or., to significantly increase annual capacity. The $50-million investment includes installing new milling equipment, sorting system, dry kilns and planer and improving its plus shipping and log yard.
Weyco Moving Hq. to Seattle
Weyerhaeuser Co. will move its headquarters from Federal Way, Wa., to Seattle, Wa., in mid to late 2016, when construction of a new building is complete. The new facility will cover seven stories and about 165,000 sq. ft.—
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roughly half the size of its current quarters. “There are two main drivers for this decision, which we made after thorough analysis of various options for the location of our headquarters,” said president and c.e.o. Doyle R. Simons. “First, our 430-acre campus in Federal Way is costly and too large for our needs. Second, moving our headquarters to Seattle will give us access to a larger talent pool to meet future recruiting needs, not just in this region, but from across the country.” The company will divest the land and buildings it owns in Federal Way, where it moved to from Tacoma in 1971. It plans to retain its nearby tech center.
Legally Blind Plaintiff Sets Sights on Home Depot
A former assistant store manager at Home Depot, Arrowhead, Az., who is legally blind has filed a discrimination suit, charging the company failed to accommodate his disability in requiring workers to use smartphones with small screens, and then firing him. Leslie W. Gibson, who worked for the chain from 2000 to 2011, claims Home Depot would not provide him with a reasonable accommodation when it replaced larger computers with smartphones featuring small screens he had difficulty reading. When Gibson complained, he was placed on a “performance improvement plan” and ultimately terminated. He is seeking compensatory and punitive damages for discrimination and retaliation under the American with Disabilities Act, alleging a “causal link” between his request for accommodation and his release. Two years ago, Home Depot paid deaf workers $925,000 to settle a disability discrimination class action suit.
Northern California Mill Sues City Over Water Rights
Roseburg Forest Products has filed a lawsuit to restore longstanding water rights it says were illegally taken from its Weed, Ca., veneer plant by the regional water districts. The suit alleges that its water rights were reapportioned, without notification, to wood treater J.H. Baxter & Co., Weed. Roseburg argued the issue is critical to its operations, which require water to process wood veneer and generate power used by the Weed facility, as well as commercial and
September 2014
residential ratepayers. According to the suit, the water rights were initially granted in 1932 and transferred to Roseburg when it purchased the land in 1982. Roseburg said it offers and continues to sell a portion of its water, and it has been providing free water to the city, persuant to a 50-year lease deal set to expire in 2016.
SUPPLIER Briefs Interfor has decided to make permanent the closure of its Beaver, Wa., sawmill and Forks, Wa., planer, consolidating production at its Port Angeles, Wa. The sawmill closed June 27, the planer soon after (see Aug., p. 28). Sierra Pacific Industries , Anderson, Ca., has completed its purchase of Hurd Windows & Doors and Superseal Windows & Doors, Medford, Wi., from Longroad Asset Management. SPI will continue the Hurd and Superseal brands within its windows division. Boise Cascade Co. curtailed operations at its Elgin, Or., plywood mill and stud mill Aug. 30 to Sept. 6, as it installed new equipment at its log utilization center. Pacific Western Wood Products, Los Angeles, Ca., is now
distributing Trident Luxury Vinyl Flooring interlocking planks.
Weyerhaeuser Co ., Federal Way, Wa., has launched a stock repurchase program of up to $700 million of its common shares. Feeney Inc. , Oakland, Ca., added an 87,000-sq. ft. DC in Cranbury, N.J., to service dealers east of the Mississippi River. Kodiak Building Partners, Denver, Co., has purchased fabricators/distributors AO, Inc., Dallas, Tx., and Barnsco Inc., Dallas. Cali Bamboo, San Diego, Ca., has been named to the Inc. 5000 list of the fastest growing private companies in America for the sixth straight year. National Frame Building Association has revamped its web-
site at www.postframeadvantage.com.
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EXECUTIVE MEMBERS Bakerview Forest Products Inc. Canyon Lumber Co., Inc. Cedarsource Central Cedar Ltd Fraserview Cedar Products Gilbert Smith Forest Products Ltd. Haida Forest Products Ltd.
Hy Mark Wood Products Inc Idaho Forest Group Interfor Issaquah Cedar Leslie Forest Products Lignum Forest Products Llp Mid Valley Lumber Specialties Ltd.
North Enderby Timber Ltd. Orepac Building Products Pacific Western Wood Works Ltd. Power Wood Corp. Precision Cedar Products Quadra Wood Products Rielly Lumber Inc.
Sawarne Lumber Company Ltd. Shakertown 1992 Inc. Skana Forest Products Ltd. Vancouver Specialty Cedar Products West Bay Forest Products Ltd Western Forest Products, Inc.
MacBeath Moving from California
MacBeath Hardwood Co. will relocate its corporate headquarters from San Francisco, Ca., to Edinburgh, In., on Sept. 15. For the first time in its 60-year history, MacBeath will have its production facility, c.e.o., c.f.o., and financial heart of the company all under one roof. While its four distribution centers in California are unaffected, the company cited “ongoing challenges in conducting business in the state” as factors contributing to the move. MacBeath Hardwood was established in 1954. The company offers domestic hardwood lumber, imported lumber, panels, manufactured wood products, finishes, adhesives, hardware and tools.
Hayward Grows in Redwood City
Hayward Corp., Monterey, Ca., has relocated its Redwood City, Ca., operations from the former T&H Building Supply property to a larger, more accessible site with a better layout. “Our new lumberyard and hardware store will expand Hayward’s Bay Area presence and give us the opportunity to grow our business by better serving our local customers,” said William E. Hayward, president, c.e.o. and chief sustainability officer. “It will also introduce our brand to a large group of new customers.” Later this year, the new facility will add a Hayward Design Center, stocking Kolbe & Kolbe, Marvin, Unilux, Jeld-Wen, Rogue Valley, and Lemieux doors and windows. Hayward, which operates seven lumberyards, six design centers, and a roof truss plant, acquired T&H last year.
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DEALER Briefs Parr Lumber Co. opened an 8,500-sq. ft. Parr Design Center showroom in Aloha, Or. Basic American Supply has opened in Colorado
City, Az. (Chuck Bradshaw, mgr.).
ABC Supply has opened its first location in Montana, in Billings (Adam Snavley, branch mgr.). Habitat for Humanity has opened a second ReStore discount LBM outlet in Boise, Id.; remodeled its
branch in Newport, Or.; and is relocating its 15,000-sq. ft. unit in St. George, Ut., to a 40,000-sq. ft. building that formerly housed a grocery store.
Anderson Moulding Doors & Windows, Culver City, Ca., has opened a new Door Store America showroom in Gardena, Ca., and launched a new retail site for doors (doorstoreamerica.com). True Value Hardware, Salida, Co., was honored as Business of the Month by the local Chamber of Commerce. Anniversaries: Carr’s Ace Hardware, Marysville, Wa., 90th … Shelly’s True Value Hardware, Sparks, Nv., 70th … Timberline Ace Hardware, Telluride, Co., 45th … Cali Bamboo, San Diego, Ca., 10th …
Building-Products.com
Koppers Buys Osmose Units
Koppers Inc., Pittsburgh, Pa., has completed the acquisition of the Wood Preservation and Railroad Services businesses of Osmose Holdings for $494.1 million. The Wood Preservation business has been renamed Koppers Performance Chemicals. The Railroad Services business is now Koppers Railroad Structures.
Rough & Ready Up & Running
Rough & Ready Lumber Co. has restarted its Cave Junction, Or., sawmill, 15 months after shutting down due to an uncertain timber supply. Following a $6-million upgrade, the mill now features a new resaw, high-speed gang edger, and trimmer-stacker sorter. Forty employees were rehired to get the facility back on line, with another 30 expected to return by the time the company resumes sales this month.
PLM, ILM Launch Combo Website
Pennsylvania and Indiana Lumbermens Mutual Insurance Companies have launched a new website at www.plmilm.com, combining information from the two previous company sites in a new format that enhances previous features and improves user experience. The recent affiliation of PLM and ILM has led to a number of improvements for both companies in the pursuit to prove that together, they are better. According to Steve Firko, PLM/ILM senior v.p. of marketing & field operations, “PLM and ILM have consistently maintained longstanding relationships with customers, striving to remain
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ahead of changes in the industries we serve and provide the most up-to-date information needed to protect our customers. The new website reflects this goal and once again proves why ‘together, we’re better.’” When entering the website, visitors are greeted by a scrolling banner that highlights current company initiatives and pertinent customer information. The new layout provides for easier navigation through both old and new information, creating an individualized user experience. According to Firko, the website more closely aligns with the company’s mission to be recognized as the premier insurance provider serving the lumber, woodworking and building material industries. “The new website focuses on providing customer service the way our customers want it,” said Firko. The new format allows customers to view information when they want it, where they want it, and on any device— all without losing any functionality.
Lumberman Convicted of Wire Fraud
The owner/manager of Caliber Forest Products, Turner, Or., has been sentenced to 18 months in prison and to pay $2.1 million restitution. William Claussen, 71, confessed to selling more than 60 discounted invoices from 2006 to 2008 to Middleman Northwest, Lake Oswego, Or., for products that he did not ship or for funds that he had already collected. As a result of being unable to collect on the bogus invoices, Middleman Northwest defaulted on loans, destroyed the credit of owner Brian Kincaid, and depleted the savings of Kincaid’s father, who had personally guaranteed a line of credit.
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Engineered Wood Products Real Wood Siding www.Roseburg.com 800.245.1115
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MOVERS & Shakers Steve Hagen, Western Woods Inc., Chico, Ca., and former co-owner of Unity Forest Products, Yuba City, Ca., has retired after 40 years in the industry. Tony Carpenter, Ken Carter, and George Hammann, all exCalifornia Redwood Co., are new to sales at Western Woods Inc., Chico, Ca. Jeff Wedge, ex-CertainTeed, has been named national director of window sales for BMC, Boise, Id. Thomas “Fritz” Shallah is new to door and hardware sales in Belgrade, Mt. Patti Wells, ex-Royal Plywood, is new to particleboard sales at Collins Products, Klamath Falls, Or. Gary Powell has been named c.e.o. and Ben Powell is now president of Matheus Lumber Co., Woodinville, Wa. Jon Friesen is now mgr. of Parr Lumber, Tacoma, Wa. Mike Morse has been named sales mgr. of the Contractor Direct division of Bridgewell Resources, Tigard, Or.
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Cornelia Sprung, ex-Weyerhaeuser/ TrusJoist, has been named marketing mgr. for RedBuilt, Boise, Id. New regional mgrs. are Mike Hayley in the South Coast and Jason Weber in the Intermountain Region. Mack Hogans, ex-Weyerhaeuser, and Kris Matula, ex-Buckeye Technologies, were elected to the board of Boise Cascade, Boise, Id. Director Samuel Mencoff has resigned. Tom Takach has joined Sierra Pacific Industries, Anderson, Ca., as v.p. operations for the window division, overseeing SPI’s Red Bluff, Ca., facility and two newly acquired Hurd and Superseal plants in Wisconsin. Also in the window division, Bob Taylor has been promoted to v.p. of business development & customer service, and former Hurd president/c.e.o. Dominic Truniger is now v.p. of sales & marketing. Michelle Overbeck, ex-Orchard Supply Hardware, has joined Big Creek Lumber, Davenport, Ca., as marketing mgr.
September 2014
Jon Ohlson, SDS Lumber Co., Bingen, Wa., has retired after 37 years in the business. Jim Webb, ex-Orepac Building Products, has been named customer relations mgr. at Accent Windows, Denver, Co. Jeff Ward is the new lean champion for Franklin Building Supply, Boise, Id., overseeing lean projects. Alison Campbell, ex-Stimson Lumber, is now senior log accountant for GreenWood Resources, Portland, Or. Erica Rocha is new to inside sales at Associated Building Supply, Oxnard, Ca. Gene Richau has rejoined T&R Lumber Co., Rancho Cucamonga, Ca., as western division sales mgr. Kristi L. Gall has joined the sales & marketing team at Distinguished Boards & Beams, Carbondale, Co. Timothy Coutu is new to sales at KP Wood Ltd., Vancouver, B.C. Wendy Canchola has joined Weather Shield Windows & Doors, Medford, Wi., as regional sales mgr. for the western U.S., covering California, Oregon, Washington, Idaho, Montana, Nevada, Arizona, Utah, Alaska and Hawaii.
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Colleen Boyles has been promoted to store mgr. at Home Depot, Santa Fe, N.M. Brett Carli has transferred from Santa Fe to become store mgr. in Durango, Co. Clarke Poos has been appointed mgr. of the Habitat for Humanity ReStore in Buena Vista, Co. Ralph Goldman, ex-Milgard, is the new marketing mgr. for Cascade Windows, Valley, Wa. Randy Nagle, ex-BMC, has been named v.p. of sales & marketing for LaLoma Windows & Doors, Tucson, Az. Eric Brown is now director of corporate communications for Johns Manville, Denver, Co. Mary Rita Dominic has been appointed quality mgr. for Deceuninck North America, Monroe, Oh. Pat Dixon is a new technical services specialist. Craig Menear will become c.e.o. of Home Depot, Atlanta, Ga., Nov. 1, succeeding Frank Blake, who will remain chairman. Ted Decker has been promoted to executive v.p.merchandising. Quent Ondricek, v.p. of lumber & building materials, Do it Best Corp., Fort Wayne, In., is retiring Oct. 24, to be succeeded by Gary Nackers. Nick Talarico has been promoted to divisional mgr., overseeing the hand tools, plumbing, cleaning, housewares and InCom departments. Betsy Hartman succeeds him as mgr. of internal audit. Paul Drobnitch is now director of corporate development at ABC Supply, Beloit, Wi. Kalvin Eden was promoted to national sales mgr. for the U.S. at BW Creative Railings Systems, Maple Ridge, B.C. James Webb is now national sales mgr. for Canada., and Scott Rolufs, regional sales mgr. Rob Brown, c.f.o., Hardwoods Distribution, Langley, B.C., has been appointed acting c.e.o. while president/c.e.o. Lance Blanco recuperates after a cycling accident. An Di Nguyen, ex-American Hardwood Export Council, has been named president of the Softwood Export Council, effective Sept. 15. Stephen H. Meima has been appointed executive director of the Gypsum Association. Chris P. Bacon now heads the employee cafeteria at MungusFungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus. Building-Products.com
September 2014
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Ply Gem Buying Simonton Windows
Ply Gem, Cary, N.C., agreed to buy Simonton Windows from Fortune Brands Home & Security for $130 million. Expected to close in October, the deal includes window plants in Pennsboro, Harrisville and Ellenboro, W.V.; Paris, Il.; and Vacaville, Ca., and the SimEx extrusion plant in West Virginia. Simonton will operate as a stand-alone business unit.
tion, it also saves time and effort on the job.. The inventor retained InventHelp, Pittsburgh, Pa., in hopes of finding manufacturers or marketers who will license or purchase the design. “I feel this new style of panel will be beneficial to anyone in the construction industry,” he said.
Tipsy Trespasser Topples from Hardware Store Rooftop
A woman and her date are facing trespassing charges after she fell off the roof of a San Diego, Ca., Crown Ace Hardware and hit her head. Police said they arrived on the scene Aug. 8 just after 1:30 a.m. to discover the woman with head injuries and the man, also allegedly inebriated, still on the roof. She apparently had tried to climb down and fell through an awning, striking the ground 15 feet below.
OSB Design Modified for Stability
An inventor from Show Low, Az., is pitching a new sheet design he says will allow OSB, plywood and drywall to be installed more securely during construction. He says The Wave Joint provides a wider surface to anchor the sheets to a rafter or stud and allows use of the full width of the rafter or stud for mounting, improving the project’s structural integrity. In addition, improved placement of nails and screws reportedly results in a safer connection, despite accommodating standard fasteners. Because of its ease of installa-
SIMPSON STRONG-TIE, Pleasanton, Ca., supplied 95% of the fasteners and 100% of the hangers for an environmentally friendly multifamily building constructed by Appalachian State University, Boone, N.C., and Universite d’Angers, Angers, France. Constructed as six modular units, the structure competed in Solar Decathlon Europe, held June 28-July 14 in Versailles, France.
REAL. STRONG. REDWOOD. Compared to redwood, which is naturally beautiful and durable, with a structural integrity that can’t be replicated, composite lumber suffers. In fact, redwood is the ideal wood product for just about any home project—indoors or out. With its natural resistance to shrinking, warping and checking, using redwood lumber on your project means you built it to last a long, long time.
realstrongredwood.com - info@calredwood.org - (925) 935-1499
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Big Gains Expected in Global Drywall Demand
Global drywall demand is forecast to rise 5.8% annual through 2018 to 10.4 billion square meters, according to a new Freedonia Group report. Rebounds in building construction spending, following years of declines in both North America and western Europe, will be the primary drivers of demand. Growing sales in Africa and the Mideast, where drywall continues to gain popularity over more traditional building techniques and materials, will also contribute to demand gains. While demand in both the Asia/ Pacific region and Central and South America is projected to slow from gains seen earlier in the decade, both regions will post solid growth through 2018. Nearly three-fourths of new drywall demand from 2013 to 2018 will be due to China and the U.S. Drywall sales in the U.S. are forecast to advance nearly 8%, as the housing market recovers. In China, demand for drywall is expected to post more than 7% annual growth, bolstered by significant gains in both residential and nonresidential construction spending. Drywall is also projected to be used more frequently in residential applications in China, as it gains popularity over traditional building materials. Many industrializing countries— such as Brazil, India, Mexico, Saudi Arabia, and Turkey—are also forecast to post solid growth in drywall demand through 2018. Increasing demand for urban housing will drive residential building construction spending and related drywall sales. In addition, advances in office and commercial construction activity will contribute to demand gains. Going forward, drywall demand will benefit from local construction companies increasing drywall usage at the expense of other products, such as building plaster. The drywall market in western Europe is projected to expand over 2% annually through 2018 to over 1 billion square meters, a rate above the 2008-2013 pace, but the slowest internationally. Many countries are expected to post rebounds in demand as their housing markets recover, with Spain registering the fastest growth and Italy and the U.K. also forecast to perBuilding-Products.com
form well. Global demand for building plaster is projected to advance over 4% per year to approximately 35 million metric tons in 2018. Construction firms in many countries are projected to gradually increase their usage of drywall-based construction techniques at the expense of wet construction methods, which require more building plaster per unit. A portion of these losses, however,
will be offset by growing use of building plaster as joint compound during drywall installation.
Oregon Laminator Sold
Thermo Pressed Laminates, Klamath Falls, Or., has been purchased by Panel Processing Inc., Alpena, Mi. The acquistion allows Panel Processing to better provide wood components, coatings and custom flat panel fabrication services to the West Coast. TPL will operate as a subsiary of Panel Processing.
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Unique Lumber Buying Platform Launches Woodbrowser Inc., Grantham, N.H., has officially launched the building industry’s only transparent purchasing platform for lumber and panel products. Woodbrowser currently provides truckload quantity purchasers with direct access to lumber at over 145 mills and growing in North America via phone, email and online, as well as products from traditional wholesalers and distribution channels. “Woodbrowser’s platform and sales process provide buyers and sellers of lumber products with a much more efficient method of price discovery on the open market, really as easy as sending an email,” said president Chuck Gaede. “Our True Price Finder platform replicates the current sales cycle that can take hours when conducted traditionally via phone and email. We’ve transferred that process to an easy-to-use web platform that allows buyers to view bids from multiple mills and sellers simultaneously, negotiate, and then purchase all in the same place, which saves an enormous amount of time.” In May 2013, its beta site was test-
ed with select customers and mills, and the newly updated platform went live this past June. Unlike past trading platforms, Woodbrowser recreates the current sales process, allowing a buyer to simply choose the products they are looking to purchase, and instantly send that quote request to multiple mills and brokers. The user interface allows for both sides of the transaction to offer, receive, and negotiate pricing all on one screen, with the buyer seeing the actual cost from the mill or seller plus a flat fee based on the per-1,000-bd.-ft. cost of the lumber. The platform also provides valuable feedback including current market data, the rank of the offer, and average offer price, which is information that has never been offered to either party in the current marketplace. Purchasers and sellers can also find all of their purchase orders and past quotes all in the same place. “Our team also understands that the industry thrives on information about movements within the market, which is why we share real-time
updates on the market via our website, through customer emails, and by multiple daily conversations with producers and purchasers,” Gaede added. “More importantly, we work with all of our customers the way they want to do business. While some purchasers are interested in sourcing their lumber online, others are not which is why we will continue to trade traditionally via phone and email for as long as our customers request.”
Benjamin Moore Opening West Coast DC
Benjamin Moore & Co. will open a new 375,000-sq. ft. distribution center early next year in Oakland, Ca. The company’s first Silver LEEDcertified operation, the DC will serve retailers and distributors in the western U.S. and—in time—the Asia Pacific region.
APP Watch
App: SIMPSON STRONG-TIE Produced by: JOIST HANGER SELECTOR Price: Free Platforms: Web Users can quickly and easily select the most appropriate and costeffective joist hanger for their projects based on the type of installation, type and size of lumber and loads using a new web app from Simpson StrongTie. The easy-to-use interface enables users to quickly select the members and configuration for their desired connection, and print the results. The app is accessible from any web browser and doesn’t require downloading or installing special software. It was developed after receiving feedback from engineers who appreciated the functionality of SST’s Connector Selector software, but asked for an easily accessible, webbased version. Use at www.strongtie.com/jhs
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MANAGEMENT Tips By Kim Seeling Smith
Mind reading for managers
Fully engage staff in 5 easy conversations
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ID YOU KNOW that only a fraction of your staff brings their “A game” to work every day? According to companies like Aon Hewitt and the Gallup Organization, this number is about one in five. The rest? At best they are bringing their B or C games to work. At worst, their main goal is to keep from getting fired. This is the employee engagement
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crisis we now find ourselves in. Countless companies dedicate a sizeable chunk of their annual budgets to solving their employee engagement issues, when in reality most engagement issues (as well as performance and behavioral problems) can be solved through conversation. Five conversations to be precise. But most managers don’t talk to their staff frequently enough, or don’t
know how to talk to them or what to talk about! Managers are unaware as to how to plug into their employees’ minds and figure out what they really want, and what they need to be fully engaged—and productive. There are no psychic forces at work: getting into the minds of your employees to glean the information needed to increase not only engagement, but productivity in your work-
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force can be as simple as conducting the following five FOCUSed conversations.
Conversation 1: Feedback
There are two types of feedback that fall under this conversation. First, give praise where praise is due. Studies have shown that a vast majority of employees do not feel appreciated enough for the job they do. Praise, it seems, is a scarce commodity in the workplace. So if your staff is doing a good job, be sure to let them know. Conversely, one of the key factors in employee engagement is the ability to have your say. Be receptive to your staff’s feedback. Who knows, they may just come up with a brilliant idea that makes a huge difference for the company.
Conversation 2: Objectives
Most performance issues stem from a disconnect between what the manager perceives as meeting objectives and what the staff member perceives as meeting them. To drastically reduce performance issues, managers must both clearly define and articulate expectations. Yet few do. Your employees need to know what they must do to be successful in their jobs, and how that success will be measured. And you need to have a clearly defined yardstick by which to objectively measure performance. Aligning their expectations with yours will result in less frustration and anxiety—on both your parts.
Conversation 3: Career Development
Many studies list career development within the top three factors that employees gauge to determine whether to
stay with their current employer or look for another job. Yet, many managers avoid this topic like the plague for one of three reasons: • They don’t understand how to manage their own careers. • They are afraid that if they help their staff manage their career better they will surpass them on the corporate ladder. • They are afraid to talk about career development because they don’t feel they can meet the employee’s expectations. This is especially true in smaller companies or niche functions where there is not a lot of vertical career opportunity available. Helping staff manage their careers makes good business sense. Ensuring that they understand what opportunities exist within your company (something they may not recognize without your help) will inhibit them looking outside of it. Find out what your employees’ priorities are and have open, honest conversations around how your company can help them achieve them—even with any constraints you may have. Suggest and recommend internal opportunities to learn, grow and develop and they will at least delay—if not avoid—looking for external ones.
Conversation 4: Underlying Motivators
The Underlying Motivators conversation helps to uncover those intrinsic factors—currencies of choice—that science has shown to be much more highly motivating than extrinsic ones such as pay and benefits. By tapping into each individual’s currencies of choice you will help uncov-
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 36
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er what they need to go the extra mile. Conversely, once they do, they need to be recognized appropriately for it. The old adage “Praise in public, correct in private” is only half true. Many people don’t respond well to public recognition. Identify the drivers of each individual staff member to unlock productivity and unleash potential. Then recognize them appropriately when they do go that extra mile.
Conversation 5: Strengths
According to Gallup, teams whose members play to their strengths most of the time are: • 50% more likely to have low employee turnover • 38% more likely to be highly productive • 44% more likely to earn high customer satisfaction scores Strengths can be defined as the innate abilities or behavioral patterns that are neurologically hard-wired into our brains between the ages of 3 and 15. The context of the behavior will change over time, but the patterns remain the same. So those children who share their toys in the sandbox at the age of 5 may very well become 15-year-olds who volunteer at the local charity. And 20 years on, they may
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become the 35-year-olds who are the most collaborative in the workplace. Strength-identification also requires a very minor time commitment: as little as two hours per week can make a world of difference. If you can help your staff determine behaviors that come naturally to them, you will find that their stress is decreased, they become more engaged—and, of course, more productive. There is no reason to spend mass amounts of time and money on “engagement” programs when all it takes is tapping into the minds of your personnel. By first hiring the right staff and then employing the five FOCUSed conversations, managers will significantly increase overall employee engagement. Communicate with your staff frequently, effectively and about the things that really matter to them. – Kim Seeling Smith is a human resources expert and author of the new book Mind Reading for Managers: 5 FOCUSed Conversations for Greater Employee Engagement and Productivity. Reach her via igniteglobal.com.
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FAMILY Business By Wayne Rivers
Slamming on the brakes with the next generation
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recently got his learner’s permit, a right of passage for all teenagers and a different sort of right of passage for parents. As he learns to drive, I find myself slamming repeatedly on imaginary brakes and trying, usually in vain, to use moderately toned coaching instead of screaming at the top of my lungs. As with so many experiences, trying to teach my son to be a responsible driver has made me mindful of families in business together and intergenerational relationships. On a recent business trip, I rode in cars with members of our client’s family business: the husband, the wife, the daughter, and one of their employees. In none of those occasions did I feel tense, slam on the imaginary brakes, or shout Y OLDEST CHILD
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intemperately at the driver. What makes me (along with most other parents of teenagers) so much worse a passenger when riding with my own dear son versus when riding with comparative strangers? And what makes business families less tolerant of each other than they are of “outsiders”? First, we have a desire for our children to be perfect. I critique every aspect of my son’s driving: every lane change, failure to use a turn signal, or one mile per hour over the speed limit elicits a comment. When riding with friends, clients, or anyone else, these things aren’t even worth a mention. Perfection—never a realistic goal—is something we both expect and demand from our children, especially as we coach them to take on responsibilities for things about which we care the most. Next, part of our anxiety is related to imaginary fears. We fear the heartache that would come if our children were in accidents and were injured. Even where no injury is involved, we worry about how they’d cope dealing with strangers in high-stress situations like rush hour fender benders. Again, when thinking of our employees or peers, these imaginary fears rarely come to mind. Third, it’s a little unnatural for go-go entrepreneurs like me to teach. We’d rather jump into the driver’s seat and take charge of the wheel ourselves. Having someone else steer the car makes us feel vulnerable and afraid—especially if that person is our child. Having another competent peer chart the course doesn’t seem to bother us nearly the same way. Finally, deep down inside there is a lack of trust in our children. We remember the sloppy homework, the laziness when it came to working on school projects, the inclination to put friends and social activities ahead of work and scholarship, and other shortsighted, child-like decisions. It’s hard for us to see that now they’re driving their own cars or, in the case of many family businesses, steering the Building-Products.com
company that dad and granddad helped create. Eventually, I suppose, I’ll grow more comfortable with my son driving the car and my foot won’t reflexively jump on the invisible brake quite so often. For families in business together, here are some tips for helping their children earn their “Family Business Learner’s Permits”: Require that your children work elsewhere, for at least three years, before coming back into the family business. I recently told a client that we were putting together “Entry Rules” for another client whose children are about to finish college. He remarked, “I wish I had made my sons do that. I think it would have solved a bunch of immaturity issues.” His sons had come to work for him directly after college and had no work experience at all outside the family business. Partly due to their tender ages, partly due to dad’s genius in building a business, and partly due to his ability to clean up any messes they created, they engineered plenty of havoc and heartburn. They each had behavioral, maturity, and even substance abuse issues they wrestled with as younger men. Would they have engaged in these sorts of behavior while working for another company? Maybe, but maybe not. It is likely that they would have been held more accountable for unprofessional or unproductive behavior in someone else’s company. Teach your children financial independence early and it will pay dividends their whole lives. Most banks today will allow children as young as 12 or 13 to have their own debit cards, as long as the parents are willing to stand behind them. Give them a fixed sum or money, or better yet have them earn it through chores, yard work, babysitting, etc., and have them put money into the debit account. Nothing will teach them about the scarcity of money better then having them blow their own money on their youthful indulgences. Don’t directly supervise your children in the family business. It’s simply too hard to be objective about our precious children whom we love so dearly. Have them work for other people in your company, and let those supervisors evaluate them. When your son runs back to you and says, “John Doe is being way too hard on me,”
you should demonstrate the importance of chain of command and objective evaluations by staying out of it. Unless it is an extraordinary or egregious situation, you should stay away for two reasons: first, it won’t do to undermine the manager to whom you’ve given this great responsibility, and second, your children need to know what it is to work for different bosses with different styles of different things. They need to learn to be a part of the team, not a primadonna who get what they want by seeking intervention from Mom or Dad. Have outsiders objectively evaluate how your children are progressing and growing in the business. An outsider can informally survey other employees for their impressions, evaluate work tasks of various kinds, help you think through how best to coach your next generation leadership candidates for improved performance, and help them see their future career paths as they accept more and more responsibility. An outsider can also help with evaluation tools and instruments to better understand your child’s capabilities, work and thinking styles, and what roles in the business are better suited to his or her preferences and inclinations. As I think about my son the novice driver, and I think about myself as a “side seat driver,” I realize that I slam on the imaginary brakes too much. In terms of our clients, I have observed that many family business next-generation leadership candidates keep their “learners’ permits” until age 55 or 60. In their cases, parents continue to slam on the invisible brake so frequently that it undermines the successor generation as business leaders, parents of their own children, and human beings. Maybe we should all resolve to not be overprotective and slam on the invisible brake too much. Then, next-generation leadership candidates will be more likely to reward the opportunities and confidence with rapidly improving performance. – Wayne Rivers is president of the Family Business Institute, Raleigh, N.C. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493. Reprinted with permission of the Family Business Institute. No portion of this article may be reproduced without its permission.
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NEW Products
Modified Porch Flooring
Snavely Forest Products and Accsys Technolgies have teamed to produce Covered Porch Accoya, made from acetylated southern yellow pine. Acetylation creates an attractive, non-toxic wood product with improved durability and stability. The product’s refined finish and code approval for 16” joist spacing make it ideal for porch applications. It can be coated on-site and carries a limited warranty against rot and decay of up to 25 years. It is distributed by Snavely’s network of locations.
SNAVELYFOREST.COM (410) 386-0654
Premium Pine Boards
Reserve Pine—Interfor’s entry into the niche 1” premium board and specialty market—is made from some of the finest pine forests in Oregon. The boards are said to feature an impeccable look and feel, with a superb quality finish on both the faces and edges, a distinct grain pattern, tight knots, and appealing golden color. Boards come in dimensions from 1x4 to 1x12, and have a moulded micro-eased 1/16” radius edge. They are ideal for fascia, interior trim, general building construction and pattern blanks. The line also includes complementary top-of-theline paneling and decking products.
INTERFOR.COM
whitewoodsales@interfor.com
Decorative Vinyl Siding
Vytec Siding now offers vinyl board and batten siding in eight colors, semi-beaded panels in seven colors, and a beaded porch panel in four colors. The 6-1/8” board and batten siding has a natural woodgrain, with a square-edged overlap for a rustic look. Semi-beaded panels combine old-style charm with a modern U-groove design and a brushed finish that resembles hand-painted wood. The triple 2-2/3” beaded porch panels can be used on porch ceilings for the look of wainscoting. Round moulding at the edge of the soffit provides a customized, hand-painted look.
Dow Corning’s HPI-1000 building insulation blanket is designed to offer more thermal resistance than conventional insulation products. The product’s thin profile and flexibility allow it to be easily cut and conformed to complex shapes and tight curvatures, making it ideal for hard-to-insulate spaces. The blanket is also fire-resistant, hydrophobic, and will not settle over time.
VYTEC.COM
DOWCORNING.COM
(800) 265-2230
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Insulation Blanket
(800) 248-2481
September 2014
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New Eagle Takes Flight
Epicor Software Corp. has released Epicor Eagle N Series, its next-generation retail management software for independent retail businesses, combining a rich feature set and advanced business intelligence tools with a completely redesigned and simplified user interface. The new software offers embedded business intelligence, simplified workflows, an integrated support bar with context sensitive access to online training, customer support and online user community, and an updated user interface. Analytics are embedded within the solution and readily available, making it easier to chart customers’ shopping habits, behaviors and buying patterns. Built on Microsoft .NET technology architecture, it is easy to install, maintain and extend.
EPICOR.COM
(888) 463-4700
Wider French Doors
The four-panel sliding French door from Integrity Windows & Doors is available in sizes up to 16’ wide by 8’ tall. Other options include a bare wood or prefinished white interior, six exterior color options, divided lites, energy-efficient glass, and two handle styles.
INTEGRITYWINDOWS.COM (888) 419-0076
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Premium Casements
Porch Supports
CAMO Edge Pro from National Nail Corp. is an auto-feed screw system that secures deck boards through the board edge. Powered by a Milwaukee drill, the tool uses 2-2/8” CAMO collated hidden fasteners (available in ProTech coated or 316 stainless steel), which can be used with any decking material.
A porch post base from Simpson Strong-Tie eliminates the need for temporary vertical support of a porch roof, while providing safe access for installers and inspectors. Stiffened, embedded side stirrups add temporary support, and a 1” stand-off reduces the potential for decay at post or column ends. Sizes are for both 4” and 6” slab thicknesses.
CAMOFASTENERS.COM
STRONGTIE.COM
Pro Deck Installation
(800) 968-6245
Weather Shield’s Premium Series of aluminum-clad wood windows and doors now includes a push-out casement unit. The two side-by-sash unit does not have a center frame or rail to obstruct views when it is open. Standard sizes as large as 3’6”x7’ are available, as well as singles, multi-wides, and French configurations.
WEATHERSHIELD.COM (877) 452-5535
(800) 999-5099
Ultra-Efficient Entry
Architectural Testing rated ProVia’s Embarq fiberglass entry doors the most energy efficient in the U.S. market. The entire line is 40% thicker than standard exterior doors. A dual perimeter seal creates a nearly impenetrable barrier against drafts and energy leaks.
PROVIAPRODUCTS.COM (877) 389-0835
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Building-Products.com
Motion-Activated Lighting
New motion-activated LED light strings from Denmark provide soft, instant light where needed. Each kits includes either one 10-ft. or two 5-ft. self-adhesive lighting strips, a motion sensor, and 8 ft. of electrical cord for connection to an outlet.
MYLIGHT.ME
Shaker-Style Doors
The three-panel Shaker-style door from Masonite has flat panels and crisp definition. ADA-compliant, the molded doors come in 6’8” and 7’ door heights—in regular and bi-fold styles— and have 1-3/8” and 1-3/4” hollow core options.
MASONITE.COM (800) 663-3667
Coated Steel Studs
ClarkDietrich now offers ProStud steel studs with a DiamondPlus corrosion-inhibiting coating, which penetrates into the zinc-coated substrate to form a permanent bond and fill voids, cracks and pores.
CLARKDIETRICH.COM (800) 543-7140
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Waterproofing Compound
W.R. Meadows’ new waterproofing compound reportedly will not shrink, has low odor and VOC content, and will not crack in extreme cold or soften at high temperatures. Hydralastic 836 protects against water intrusion on concrete and asphalt surfaces. It can also be used to waterproof plaza decks and planter boxes, and to seal parapets.
WRMEADOWS.COM (847) 214-2100
Organizing the Pros
DeWalt’s Pro Organizer offers heavy-duty storage with a see-through lid for visibility of small parts and tools. Six removable inner cups address specific storage needs. The impact-resistant lid seals out moisture and can be locked in place to prevent spillage. A side lock allows several units to be stacked together, while a carry handle allows maximum portability.
DEWALT.COM (800) 433-9258
Luxury Underlayment
Durable Charger
LuxWalk underlayment from MP Global Products is designed for use under luxury vinyl flooring in residential and commercial projects. Made with 31% post-consumer recycled content, the product limits sound transmission and is LEEDcompliant.
Stanley’s 8-amp, high-frequency battery charger is sealed to prevent corrosion from dust, oil and moisture. The product is fully automatic; simply connect to battery with the included clamps. It’s light and compact for easy storage, use and travel.
QUIETWALK.COM
STANLEYTOOLS.COM
(888) 379-9695
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(860) 827-5480
September 2014
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Natural endurance. Limitless innovation.
Portable Workshop
DeWalt’s multi-level workshop can transport and store large tools and other jobsite necessities. Four levels deliver 90 lbs. of load capacity and 22.2 gallons of storage space. Large power tools can be stored in the oversized bottom bin, while hand tools and smaller items can be stored in the middle or top bins. The middle section includes eight compartments with removable dividers, for customization of storage. Other benefits include a single pull-up latch for easy opening, heavy-duty 8” rubber wheels, and ballbearing slides for smooth opening of the cantilever system.
The warmth and feel of exotic hardwood. The durability and sustainability of TruGrain™ made with Resysta®
1.800.464.8614 • tru-grain.com
DEWALT.COM (800) 433-9258
Natural Gas Trucking
Peterbuilt Motors now offers a new powertrain option for several of its natural gas vehicles. The new option provides an automated transmission with intelligent shift-selection software and a 100% natural gas engine powered by either CNG or LNG.
PETERBUILT.COM (800) 473-8372
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WESTERN WOODS INC. Photos by Western Woods Inc.
WESTERN WOODS INC., Chico, Ca., held its customer appreciation golf tournament July 28. [1] Stephanie Fish, Kevin & Glenda Paldino, Danielle Equitz, Kristy Parker, Tom Von Moos. [2] Bill Brooks, Bob Maurer. [3] Eric Clouse, Jesus Castro. [4] Dave Guiterrez, Jim Stockman. [5] Sean Hudson, Jean Henning.
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[6] Denis Stack, Mark Borghesani. [7] Charlie Moss. [8] Bob Brown, Jason Pardini, Todd Murphy. [9] Cary Twing, Joe Whitlock. [10] Rick Ray, Tony Carpenter. [11] Bob Roberts, Blake Keitzman. [12] Tony Pozas, Rick Roberts. [13] Kevin McVey, Greg Reed, Pat Condon, Darryl Lindke. [14] Jim McVey, Jim
September 2014
Edwards, Mike O’Donnell, Doug Heryford. [15] George Hammann, Jeffrey Loftus. [16] Kory Kier, Greg Carter. [17] Danny Osborne, Mark Blofsky, Pat Haley. [18] Robert Rogers. [19] Steve Bertsch, Kevin Destruel, Rick Richter, Pat Weaver. (More photos on next page) Building-Products.com
WESTERN WOODS INC. Photos by Western Woods Inc.
CANYON OAKS Country Club, Chico, Ca., was the site of Western Woods’ recent golf event (continued from previous page). [1] Mario Barajas, Rich Graham, Kevin Matteri, Jerry Tucker. [2] Brian Johnson, Patrick Cardoza. [3] Dave Sorenson, Brendan Roseta. [4] Jeff Squires, Chris Luccetti. [5] Ken Dunham, Steve Bortolazzo. [6] Lee Burgess, Ken Carter, Bruce Burton. [7] Kevin Richter, Chris Richter. [8] Chris Karabinus, Jerry Dennis. [9] Tim Murphy, Dennis Furry, Josiah Clark, Ted Shreve. [10]
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Bud Bristow, Ryan Owen, Rob Rowe, Craig Smith. [11] Ray Peterson, Joe Hoglund.
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UMPQUA VALLEY Photos by The Merchant Magazine
UMPQUA VALLEY LUMBER Association hosted its annual mill tour, meeting, and golf tournament Aug. 6-8 at Seven Feathers Casino, Canyonville, Or. [1] Jeff Squires, Bob Maurer, Scott Wintermute. [2] Ron Liebelt, Frank Forward. [3] Aaron Tull, Fred Sutton. [4] Liz Ritz, Laurel Casey. [5] Gary & Sandy
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Pittman. [6] Steve Culbertson, Dan Mandeville. [7] Dixie Tibbets, Jimmy Swanson. [8] Kris Lamke, Jim Hunt, Nancy Daniels. [9] J.T. & Charity Taylor. [10] Bill Bourgaize, Danny Osborne, Kevin Lang. [11] Jim Frank, Randy Wiles, Frank Peterson. [12] Jay Hart, Leslie Southwick, Carter Stinton. [13] Matt & April September 2014
Campbell. [14] Troy Huff, Blake Keitzman, Kevin Smith. [15] Lee & Bonna Greene. [16] Gage Holland, John Hanson. [17] Keisha & Ryan Owens, Darhla Underwood, Tanya Gubbard, Kris Lewis. [18] Dave Halsey, Brah Mehl. (More photos on next two pages) Building-Products.com
UMPQUA VALLEY Photos by The Merchant Magazine
MORE UVLA Mill Week in Oregon (continued from previous page): [1] Tim Hunt, Steve Swanson. [2] Matt Fullerton, Rick Deen. [3] Grady Mulberry, Jake Crews, Bob Crews. [4] Scott Nelson, Dustin Heusser. [5] John Murphy, George Hewitt. [6] Sean & Angela Rondeau, Craig Cline. [7] Art Reid, John Vranizan. [8] Summer & Mick Baranko. [9] Dave Rainey, Mary McMurphy. (More photos on next page)
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UMPQUA VALLEY Photos by The Merchant Magazine
OREGON’S UMPQUA VALLEY Lumber Association hosted its annual summer event (continued from previous two pages): [1] Grant Schuberg, Troy Bailey, Rex Klopfer, John Eshleman. [2] Greg Chase, Rod Lucas, Steve Killgore. [3] Tim Beaudoin, Bobbie & Norm Persons. [4] Terri Collins, Dean Hague, Chris Swanson, Kathy Lindsay. [5] Brett & Karen Slaughter, Tim Hunt. [6] Beth Hager. [7] Ken Munyon, Jeff & Sandy Remington. [8] Leland Curtis. [9] Robert Spaulding, David Miles, Andy Jones, Roger Tomlin. [10] Rick & Jan Siltanen. [11] Misty Ross, Eric Ford. [12] Mike Ebert, Joe Robinson, Maurice Van Hall, Randy
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Johnson, Bob Shook. [13] Suzy & Jon McAmis, Josh Renshaw. [14] Jackie & Brian September 2014
Johnson. [15] Mark Dwyer, Ericka & Mark Swinth, Rob Endres. Building-Products.com
ASSOCIATION Update West Coast Lumber & Building Material Association will hold its annual convention & expo Nov. 6-7 Miramonte Resort & Spa, Indian Wells, Ca. Themed “Controlling Your Future,” the event will feature sales trainer/consultant Rick Davis on sales management, BlueTarp’s Shawn Cunningham on managing finances and credit risks, and Craig Webb looking at the LBM industry from 30,000 feet. Mountain States Lumber & Building Material Dealers Association is preparing for its fall conference Oct. 2-4 at Sonnenalp Resort, Vail, Co. On Nov. 11 at Mile High Station, Denver, Co., a Fundraising Brewfest
will feature a live and a silent auction to benefit Project Healing Waters and the association. Western Building Material Association will host a workshop for human resource personnel Oct. 7 at its Kincaid Learning Center in Olympia, Wa. A blueprint reading and take-off workshop led by Casey Voorhees follows Oct. 8-9. WBMA is also returning its annual convention to the fall—Nov. 5-7 at Red Lion on the River, Portland, Or. During the event, Bill Lee will lead two programs: “How to Take Your Business to the Next Level” and “Coaching Your Salespeople on Dealing with Price Objections.” Also on the agenda: supplier net-
LOS ANGELES Hardwood Lumberman’s Club enjoyed a summer wine tasting and barbecue Aug. 9, hosted by Jim & Tracey Gaither in Yorba Linda, Ca. [1] Tracey Gaither, Elizabeth Duarte. [2] Jim Gaither, Charlie Bohnhoff. [3] John Mortati. [4] Diane Johnston, Kevin Tranter. [5] Steve
working reception and table-top show, president’s banquet, keynoter Dr. Bill Conerly on “The Economic Outlook: New Opportunities & Risks in the Evolving Business Cycle,” and luncheon speaker Jared Ogden, a retired member of U.S. Navy Seal Team One. National Lumber & Building Material Dealers Association is staging its annual industry summit Oct. 28-30 at the Hard Rock Hotel in San Diego, Ca. Presentations “Envisioning the Lumberyard of the Future,” “The National Green Building Standard: Green Certification Game Changer,” “Understanding Today’s Residential & Commercial Construction Cycle Will Be Radically Different,” “Using Mobile Technology to Advance Your Business,” “Beat Last Year! Cultivating Continuous Sales Growth,” and a D.C. legislative update.
& Jan Arnold. [6] Dennis Johnston, Paul Pendergast. [7] Alan & Dana Arbiso. [8] Dan Bohannon, Kit Rohm. [9] Carl & Anellina Henoch. [10] Bill & Kathy Fitzgerald. (Photos by Steve Ondich)
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IN Memoriam Jean “Dusty” Destruel, 87, former owner of Mead Clark Lumber, Santa Rosa, Ca., died Aug. 25 following a battle with liver cancer. During World War II, he served in the U.S. Navy in the South Pacific. He joined the family lumber business in 1948, rising to president in 1975. He sold the company to his two sons, Kevin and Randy Destruel, in the mid-1990s. Joe Archuleta, 82, owner of Alum Rock Lumber & Supply, San Jose, Ca., died Aug. 18.
An Army Airborne Veteran of the Korean War, he opened Alum Rock Lumber in 1977. For the last 20 years, he has operated it as a truck rental business. Jim Anthony, 86, retired executive vice president at RY Timber, Townsend, Mt., died July 10 in Oakridge, Or. He spent many years in the industry, before retiring from RY at age 84. Albert R. Barber, 77, Pacific Northwest mill manager, died June 18. A U.S. Army veteran of the Korean War, he spent more than 30
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years managing and supervising lumber mills in the Cottage Grove, Or., area. Albert M. “Alberto” Richardson, 92, former manager of C&L Lumber & Supply, Ruidoso, N.M., died Aug. 11. He led C&L for 35 years. Tommy E. Lamm, 86, longtime Wyoming lumberman, died Aug. 21 in Torrington, Wy. He served in the U.S. Navy Seabees Division during World War II. In 1952, he joined the family business, R & M Lumber Co., LaGrange, Wy. In 1982, he relocated to Torrington and continued in the lumber business until retiring in 1998. Joann Hunter, 82, co-founder of Hunter Lumber Corp., Albuquerque, N.M., died Aug. 15. She graduated from University of New Mexico in 1952 and opened the lumberyard with her husband, Weldon, in 1959. Several years ago, they sold the company, now Hunter Bower Lumber, to longtime manager Ken Bower. Homer Kay Kessler, 89, retired construction supervisor for South Coast Lumber Co., Brookings, Or., died Aug. 11. He received two purple hearts while serving in the 17th Airborne Division in the U.S. Army during World War II in the Parachute Infantry. He operated his own construction company before joining South Coast, retiring in 1991. Robert Victor Chapman, 87, Northern California lumberman, died July 29 of congenital heart failure. After serving in the U.S. Navy during World War II, he worked as a superintendent for Van Fleet Lumber Co., Hoopa, Ca., and as a lumber grader for Diamond National Lumber Co., Anderson, Ca. After retiring in 1989, he operated a woodworking business, Chapman Windmills. Murlin Robert Ward, 87, retired lumber grader for Weyerhaeuser Co., Longview, Wa., died Aug. 25. He served in the U.S. Army in Europe during World War II, then spent 35 years with Weyerhaeuser, before retiring in January of 1989. Building-Products.com
DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Jensen Distribution Services – Sept. 10-12, fall market, Convention Center, Spokane, Wa.; (800) 234-1321; jensenonline.com. Los Angeles Hardwood Lumberman’s Club – Sept. 11, meeting, The Filling Station, Orange, Ca.; (626) 445-8556; lahlc.net. Northern Utah Home Show – Sept. 12-14, Davis Convention Center, Layton, Ut.; (888) 433-3976; www.acshomeshow.com. Hoo-Hoo International – Sept. 13-16, annual convention, Flamingo Hotel, Santa Rosa, Ca.; www.hoohoo.org. American Architectural Manufacturers Assn. – Sept. 14-17, fall conference, Westin, Westminster, Co.; www.aamanet.org. American Wood Protection Association – Sept. 14-18, fall meeting, Portland, Me.; (205) 733-4077; www.awpa.com. Ace Hardware – Sept. 17-19, fall market, Orange County Convention Center, Orlando, Fl.; (630) 990-7662; acehardware.com. North American Rail Shippers Assn. – Sept. 18-19, regional meeting, Seattle, Wa.; (972) 690-4740; www.railshippers.com. Pacific Logging Congress – Sept. 25-27, Live in the Woods show, Molalla, Or.; (425) 413-2808; www.pacificloggingcongress.org. Universal Forest Products – Sept. 26, annual golf tournament, Temecula Creek Inn Golf Course, Temecula, Ca.; (951) 8263011; hbromley@ufpi.com. Los Angeles Hardwood Lumberman’s Club – Oct. 2, Alan Bohnhoff Memorial Golf Tournament, Black Gold Golf Course, Yorba Linda, Ca.; (626) 445-8556; lahlc.net. North American Rail Shippers Assn. – Oct. 2-3, regional meeting, Hyatt Regency, Phoenix, Az.; (972) 690-4740; railshippers.com. Mountain States Lumber & Building Material Dealers Association – Oct. 2-4, fall conference, Sonnenalp Resort, Vail, Co.; (303) 793-0859; www.mslbmda.org. Material Handling Industry of America – Oct. 5-8, annual meeting, Rancho Bernardo Inn, San Diego, Ca.; (704) 676-1190; mhi.org. Western Building Material Association – Oct. 7, human resources workshop; Oct. 8-9, estimating workshop, Kincaid Learning Center, Olympia, Wa.; (360) 943-3054; www.wbma.org. Building Component Manufacturers Conference – Oct. 8-10, Charlotte, N.C.; (608) 274-4849; www.bcmcshow.com. Black Bart Hoo-Hoo Club – Oct. 10, golf tournament & BBQ, Ukiah Valley Golf Course, Ukiah, Ca.; (707) 542-5091; www.blackbarthoohoo181.org. True Value Co. – Oct. 10-12, fall market, Colorado Convention Center, Denver, Co.; (773) 695-5000; truevaluecompany.com. Southern California Hoo-Hoo Club – Oct. 15, meeting, Los Serranos Country Club, Chino Hills, Chino, Ca.; (323) 559-1958; www.hoohoo117.org. Do it Best Corp. – Oct. 18-20, fall market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com. Association of Millwork Distributors – Oct. 19-23, annual convention, Tampa, Fl.; (727) 372-3665; www.amdweb.com. DeckExpo – Oct 22-24, Baltimore Convention Center, Baltimore, Md.; Oct. 22-24, North American Deck & Railing Association annual meeting; (866) 475-6495; www.deckexpo.com. Remodeling Show – Oct. 22-24, Baltimore Convention Center, Baltimore, Md.; (866) 475-6495; www.remodelingshow.com. Greenbuild Expo – Oct. 22-24, sponsored by U.S. Green Building Council, New Orleans, La.; (800) 795-1747; www.usgbc.com. West Coast Lumber & Building Material Association – Nov. 6-7, annual convention, Miramonte Resort & Spa, Indian Wells, Ca.; (800) 266-4344; www.lumberassociation.org. Building-Products.com
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ADVERTISERS Index
IDEA File
For more on advertisers, call them directly or visit their websites [in brackets].
Local Focus
Allweather Wood [www.allweatherwood.com] ............................19 American West Bank [www.awbank.net] .....................................35 Big Creek Lumber Co. [www.big-creek.com]...............................30 Boise Cascade [www.bcewp.com]..................................................4 Boral [www.boraltruexterior.com] ........................................Cover I STORE OWNER GINA SCHAEFER
Helping people shop
local and paying employees a living wage—both of these tactics brought success to a hardware dealer in the nation’s capital. “I think it’s important to bring customer-friendly, home-maintenance shops back to Main Street,” says Gina Schaefer, co-owner of A Few Cool Hardware Stores. “I am a firm believer in the concept of the mom and pop shop.” Back in 2003, Schaefer and her husband, Marc Friedman, purchased a fixer-upper apartment in the Logan Circle area of Washington, D.C., but there were no hardware stores in the neighborhood. After some research, they signed up with Ace Hardware and opened a store in the neighborhood. Today, they own nine stores in D.C. and nearby Baltimore, Md. And on Aug. 15, the original Logan Circle location moved to a larger, 10,000-sq. ft. space down the street. “We really love owning these stores and are so pleased that from the first month, local people embraced us,” she says. “It is clear that people want to shop locally, and we are more than happy to fill that need.” However, she freely admits that success wouldn’t have been possible without the help of dedicated employees who are well trained, treated with respect, and paid more than minimum wage. “Paying fair wages helped our business grow fast to nine stores and nearly 200 employees—even as our economy suffered a terrible economic downturn,” she says. “Paying better wages helps us attract and retain good employees, increase sales, expand our business, and hire more employees.” Schaefer also believes in supporting the local economy and encouraging creative entrepreneurship. That’s why she launched a Made in D.C. program two years ago and a Made in Maryland program last year. “We love the idea of sourcing products locally, and we know our customers do, too,” she says. “It is our responsibility as a local business to provide these opportunities for vendors and promote economic growth in the community.” Schaeffer also works closely with Jubilee Jobs, a D.C. organization that offers counseling, retraining, and job placement, to give people what she calls second chances. “The result is that we help people—whether that means selling them a wrench to fix the toilet or finding a job so they can get off welfare or drugs. I figure if I don’t do it, who will? It seems like a good way to run a company.”
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Cal Coast Wholesale Lumber ........................................................36 California Redwood Association [www.calredwood.org]...........32 Capital [www.capital-lumber.com]................................................34 Fasco America [www.fascoamerica.com]....................................41 Fontana Wholesale Lumber [fontanawholesalelumber.com].....51 GRK Fasteners [www.grkfasteners.com].....................................49 Huff Lumber Co. .............................................................................33 Humboldt Redwood [www.getredwood.com] ..............................19 Jaaco Corp. [www.jaaco.com].......................................................36 Jones Wholesale Lumber [www.joneswholesale.com] ..............24 Keller Lumber .................................................................................42 Kop-Coat [www.kop-coat.com] .......................................................7 Matthews Marking Products [www.matthewsmarking.com] ......47 Maze Nails [www.mazenails.com].................................................15 Mendocino Forest Products [www.mfp.com] ..............................19 Norman Distribution Inc. [www.normandist.com].......................39 North American Wholesale Lumber Association [nawla.org] ......3 NyloBoard [www.nyloboard.com]...................................................5 PrimeSource Building Products [www.primesourcebp.com] ....45 Reliable Wholesale Lumber Inc. [www.rwli.com] ........................37 Roseburg Forest Products [www.roseburg.com] .......................27 Royal Pacific Industries .................................................................41 RoyOMartin [www.royomartin.com]...................................Cover IV Screw Products [www.screw-products.com] ..............................26 Simpson Strong-Tie [www.strongtie.com]..............................28-29 Siskiyou Forest Products [siskiyouforestproducts.com]...........31 Snavely Forest Products [www.snavelyforest.com]..........Cover II Swanson Group Sales Co. [www.swansongroupinc.com].........25 TruGrain [tru-grain.com]................................................................45 TruWood-Collins [www.truwoodsiding.com] ........................16A-B Universal Forest Products [www.ufpedge.com]............................8 West Coast Lbr. & Bldg. Mtl. Assn. [lumberassociation.org].....53 Westech Building Products [tru-grain.com] ................................45 Western Forest Products [www.westernforest.com] .................11 Western Red Cedar Lumber Assn. [www.wrcla.org].............11, 23 Building-Products.com
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