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CONTENTS September 2017
Volume 96 n Number 9
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Feature Story
Features
Departments
12 TOP OSB PRODUCERS
10 MARGIN BUILDERS
8 ACROSS THE BOARD 20 OLSEN ON SALES 22 THE REVENUE GROWTH HABIT 24 TRANSFORMING TEAMS 34 SELLING WITH KAHLE 38 MOVERS & SHAKERS 40 NEW PRODUCTS 58 ASSOCIATION UPDATE 60 CLASSIFIED MARKETPLACE 60 ADVERTISERS INDEX 60 IN MEMORIAM 61 DATE BOOK 62 FLASHBACK
NORTH AMERICA’S NINE OSB MANUFACTURERS ARE APPROACHING MAX PRODUCTION, AS HOUSING
14 INDUSTRY TRENDS
REBOUNDS, PRICES CLIMB, AND CAPACITY IS FLAT.
BUT AT LEAST THE LATTER IS ABOUT TO CHANGE.
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NAIL DOWN THE DETAILS TO CUT CALL-BACKS ON STRUCTURAL PANELS WHY AREN’T MORE OVERLAID STRUCTURAL PANELS BEING SOLD?
16 PRODUCT SPOTLIGHT
WESTERN SOFTWOOD SHOWDOWN: REDWOOD VS. CEDAR
SEPTEMBER 2017
Magazine
THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922
18 COMPETITIVE INTELLIGENCE
OSB, PLYWOOD & PANELS • REDWOOD vs CEDAR • UMPQUA VALLEY RECAP
ALWA LWWAAYYS TESTEDD ALWA LWWAAYYS TRUSTEED ALWA LWWAAYYS TRUCKIING
YOUNG BLOOD REINVIGORATES SOUTH MEMPHIS DEALER
32 NAWLA: THINKING AHEAD IS TECHNOLOGY A RELATIONSHIP KILLER?
Yo u r cu stome r s neve r sto p bu ild ing. That’s why we stop tru cking. With tho u sands o f in-sto ck prod u cts re to ship, count on Weyerhaeuser Distribution to deliver wh you need, on time, with a solid handshake. Call 888.453.8358 o r go to Weye r hae u se r.com/woo dpro du cts is a registered trademark of Weyerhaeuser NR. © 2017 Weyerhaeuser NR Company. All rights reser ved.
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48 EVENT RECAP: UMPQUA ANNUAL 52 PHOTO RECAP: 2ND GROWTH
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ACROSS the Board By Patrick Adams
Honesty I
’M SITTING IN one of America’s fine dining establishments, Denny’s. We sit down with the kids and my wife excuses herself to the restroom when a minute later, the waitress comes over to introduce herself. She takes one look at us and exclaims with a huge smile on her face, “You have the cutest grandchildren I’ve ever seen!” My daughter quickly rose to my defense. The waitress shrugged and walked away. Honesty…. Sometimes honesty hurts, but it’s still good when you hear it these days because for some reason it seems to be a rare commodity. Since our blessed family has expanded, our one-time “lifetime house” has felt a bit cramped, so we considered a larger one. After months of looking, we found the perfect home that we had visions of the kids growing up in. The original owners had done just that and expressed they wanted to sell to a family that would do the same. We wrote a letter introducing us accompanied with a full-price offer, because it was fair for this home. They responded that they only wanted to sell the home to us and weren’t dealing with anyone else. After a few back and forth counters over small details, were assured we had a deal… until we got the call that they had used our offer to get someone else that was also a client of their agent to bid higher and had closed the deal without so much as an opportunity to bid higher. Our agent shared, “Well, this is the way it works. You don’t have a deal until the papers are signed.” Honesty…. Sometimes honesty isn’t fair, but does that mean we should change our ways to accommodate this way of doing things? I’m trying hard to run a business and to raise my children in a way where your word means something. That hard work matters and that the “good guys” always win in the end. That being kind is the better path and that we are all reflections of our character. Essentially, that these “little things” in life actually are big things and that they matter. I try to live by a simple code in life; do what you say, deliver what you promise, work as hard as you can and be thankful for all you have. “In good times and bad, until death do us part…” is a promise of honesty and yet the divorce rate is over 50%. It used to be that your “word is your bond,” but maybe that has changed too? My wife and I have been together for 25 years and I still look at her as my best friend, my partner, and the love of my life. That doesn’t mean that it’s always easy, but the best things in life I’ve found rarely are. However, when I said “I do…,” it wasn’t on a whim; it was something that I thought long and hard about and decided that my life was better every day that she was in it, and it has been ever since.
Has society always been this way or have things changed? In the mid-19th century P.T. Barnum was attributed with the quote, “There’s a sucker born every minute.” Perhaps I’m living in a fantasy where being fair and honest is really a sign of weakness and we should all just look out for #1? It’s a dilemma I find myself contemplating on a regular basis, usually after I end up on the “short end of the stick,” as they say. Maybe living where I do in Southern California simply breeds more of the “eat or be eaten” mentality? Perhaps, but I do know this much. When I received the news about the house, I was at an industry event. I attended the closing dinner that evening at a winery with over 200 of our industry’s finest. During the event, I caught up with countless colleagues who I now call friends and many others who I know over time will eventually share the same title. Many shared thanks for all that we do to serve the industry while others came up and said things like, “I appreciate you remembering to do XXX, you didn’t have to do that, but it really helped our business.” My faith in our great nation and living by “my code” is continually restored as I travel through our industry that is full of, what I believe, some of our nation’s best people. People who share in the thought that you look out for each other, that your word is your bond and it is an honor to be able to work hard and provide for your family. Thank you for all that you do—we know it is not easy these days to live in this way, but we do know the reward for a life well lived is earned each evening when we lay down to sleep with peace in our hearts knowing we made a small difference in our world. “Honesty is the best policy.” ~ Benjamin Franklin
Patrick S. Adams Publisher/President padams@building-products.com
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MARGIN Builders By APA – The Engineered Wood Association
Nailing down the details Reduce callbacks with proper spacing
I
N CONSTRUCTION,
it’s the details that can make or break a project. When it comes to the building envelope (walls, floors and roof), even something as simple as nail spacing and pattern can have a major impact on a home’s overall performance. Walls, floors and roofs are critical structural components to any home. Properly installed floor systems also reduce, or even alleviate, squeaking and other noises underfoot. Building material suppliers play an important role in selling packages that
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include the right fasteners for the specified applications and in helping their contractor customers follow recommended installation practices. Whether a builder is looking to meet code requirements for resisting wind and seismic loads or install solid, quality floor systems, plywood or oriented strand board—wood structural panels—are the premier choices for quality home builders. The selection and application of the right nails and nailing patterns to use with the sheathing is critical.
September 2017
“Getting the nail installation right the first time is important,” says Mary Uher, field services manager for APA. “Simply adding more nails is not always the right fix for poor nail spacing. Too many nails can lead to splitting of your support material and increase panel buckling risk.” Attention to detail with good nailing patterns can ensure optimum structural performance and reduce callbacks. Depending on the surface (walls, floors, roof) and the openings, there Building-Products.com
will be a number of factors to consider when specifying fasteners. How far from the panel edges should the nail be? What about the spacing from nail to nail? Following are several additional considerations for wall and floor assemblies. Walls: Continuous sheathing with wood structural panels contributes to a structure’s ability of handle uplift loads, lateral loads, and wind pressures and protecting the occupants. It can also provide the greatest flexibility when bracing walls that include window and door openings. In addition to spacing all panels 1/8 inch at all edge and end joints, panels should be nailed to the framing 6 inches on center along the panel edges with the nails located no less than 3/8 inch from panel edges and ends while nail spacing in the center field of the panel is typically 12 inches on center. In some cases where engineered shear walls may be required due to frequent seismic activity or high wind loads, tighter nail spacing may be required. Recommended nail size varies with panel thickness and, in some cases, shear wall design. Be sure to consult the applicable building code to ensure your customers are selecting the right materials for the job. In shear wall design, wood structural panels are specified by an engineer to resist the forces determined by engineering analysis and to meet code. Shear walls have specific design values depending on their construction, fastener spacing, fastener size, sheath-
Building-Products.com
ing thickness, and framing species. Nails around the perimeter of the panels provide significant shear strength and prevent buckling.
layment, hardwood flooring, and ceramic tile.
Floors: The right number of nails, used correctly and in conjunction with a glued nailed floor system, will ensure that the floor behaves as a composite system. The correct nail size and spacing for floor systems depends on the joist spacing and panel thickness, as well as the type of panel used. In glued floor systems, use 6d ring- or screw-shank nails for panels with a Performance Category of 3/4 or less, and 8d ring or screw-shank nails for thicker panels. If the floor becomes wet during construction, it should be allowed to dry before application of finish floor, including carpet, under-
APA details proper installation of continuous structural panel sheathing in residential construction in its Engineered Wood Construction Guide (Form E30). This is information builders need to know before they get started on any residential construction project. Visit www.apawood.org for more tips and guides on how to build better performing homes.
Attention to Detail
– Founded in 1933 and based in Tacoma, Wa., APA–The Engineered Wood Association represents approximately 163 plywood, OSB, glulam timber, wood Ijoist, rim board and structural composite lumber mills in the U.S. and Canada.
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FEATURE Story By David Koenig
OSB producers approach max capacity L
AST YEAR , nine companies combined to produce 21.2 billion sq. ft. of OSB in North America, steadily rising due to a rebound in residential construction. Not only are U.S. starts up about 4% compared to a year ago, but single-family starts—which use three times more OSB than multi-family starts—are up 8%. Manufacturers are operating near full production, yet are slow to restart shuttered plants, add new facilities, or expand. So OSB prices have spiked nearly 30% in a year to $424 MSF (Random Lengths OSB composite). Norbord, Toronto, Ont., has enjoyed a banner year over the last 12 months at its 13 active OSB plants, buoyed by rising housing starts and OSB sales, production and prices. During the period, its North American OSB shipments were up 3% yearover-year. Approximately 25% of its OSB sales volume went to specialty end-uses (industrial applications and
export markets), progress toward the long-term goal of 50%. Its North American mills ran at 99% of capacity in 2nd quarter 2017 (excluding the two curtailed mills in Huguley, Al., and Chambord, P.Q.), up from 96% in the same quarter last year and 94% in the prior quarter. Norbord continues preparations to restart Huguley, but no earlier than the 4th quarter of 2017. Chambord (which Norbord took over late last year in a swap with LP) has been granted a wood allocation by the Quebec Minister of Forests, Wildlife & Parks, to take effect April 1, 2018, though it will continue monitoring market conditions before committing to restart. Louisiana-Pacific, Nashville, Tn., has 12 OSB plants in the U.S. and Canada (10 operating), with combined annual capacity exceeding 5 billion sq. ft. In 2016, LP produced 4.5 billion sq. ft. of OSB in North America, a 9%increase from the year prior.
ROYOMARTIN is short months away from starting production at a huge new OSB plant in Texas.
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Late last year, LP picked up two idled OSB mills—the former Ainsworth OSB mill in Cook, Mn., and Norbord’s Val d’Or, P.Q., facility—but both are long-term resurrection projects. Georgia-Pacific, Atlanta, Ga., has for years operated just six of its 10 OSB mills, providing up to 3.7 billion sq. ft. of annual capacity (with about 1.3 billion sq. ft. on the sidelines). Weyerhaeuser, Seattle, Wa., last year approached 96% of full-capacity production at its six North American OSB mills. In 2016, Big W’s mills produced 2.91 billion sq. ft. of OSB, up 2.2% from a year earlier. Full capacity is 3.035 billion sq. ft. Huber Engineered Wood, Charlotte, N.C., continues working toward restarting its Spring City, Tn., mill next spring. The plant, its fifth, has been down since 2011. Tolko, Vernon B.C., fast-tracked plans to resume OSB production at its mill in High Prairie, Alb., mothballed since 2008. It recently ordered two pocket batch feeders to upgrade the OSB line and expects to begin putting out product in early 2018. It now runs OSB mills in Meadow Lake, Sask., and Slave Lake, Alb. RoyOMartin, Alexandria, La., remains on target for a fall 2017 start-up of its new OSB mill in Corrigan, Tx., with production expected to ramp up early next year. The facility will nearly equal the 850-million-sq.-ft.-a-year capacity of ROM’s Oakdale, La., plant. Arbec Forest Products, St. Leonard, P.Q., has about 700 million sq. ft. of OSB capacity at its mills in Saint-Georges-de-Champlain, P.Q., and Miramichi, N.B. Langboard can produce up to 440 million sq. ft. of OSB per year at its Quitman, Ga., mill. Building-Products.com
INDUSTRY Trends By Roy Nott, Surfactor Americas LLC
Why aren’t more overlaid structural wood panels being sold? O
panels often have significant functional advantages over “raw” commodity plywood and OSB in many applications today. And they don’t cost much more. So why aren’t more overlaid structural wood panels being produced and sold? I think there are at least two reasons why. VERLAID STRUCTURAL WOOD
Path Dependency Ever wonder why our most modern personal computers still have the old QWERTY keyboard? When personal computers were first introduced, people who were familiar with the old typewriter keyboard layout transitioned most easily to similar keyboards. While these keyboards are no longer optimal today, those past decisions constrained the path of future product development. Academics call this “path dependency.” In many cases our overlaid, structural wood panel procurement, production and marketing efforts are locked in to old process and business development paths and can’t take full advantage of today’s technological and economic possibilities. There are, for instance, a plethora of largely unexplored overlay business development options for structural wood panel producers.
Overcoming Path Dependency When I was in college, way back when, we learned to evaluate new process and product investments with the aid of net present value, internal rate of return and payback period calculations. Today college students are also taught to include the value of “real options,” essentially the value of future flexibility. Future flexibility has real economic value that should always be incorporated into new process and product development decisions. In addition to path dependency challenges, change is scary and old habits—both individual and organizational habits—are hard to break. One of our industry’s habits is the single-minded, “make the same product cheaper” habit. I believe this habit is, in turn, the result of “the market for
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OVERLAYING structural wood panels provides great added value, but market forces have tempered their ascension. (Photo courtesy of Surfactor Americas)
lemons” phenomena and individual and institutional habits often formed, out of necessity, during the very difficult times in our highly-cyclical end use markets.
The Market for Lemons George Ackerloff, now emeritus professor at Berkley and the husband of Federal Reserve chairman Janet Yellen, won the Nobel Prize in Economics for his paper The Market for Lemons. In its July 23, 2016, issue, the Economist summarized Ackerloff’s famous paper: “Suppose buyers in the used-car market value good cars—‘peaches’—at $1,000. A poor quality used car—a ‘lemon’—is worth only $500 to buyers. If buyers can easily tell lemons and peaches apart, trade in both of them will flourish. But, in reality, buyers might struggle to tell the difference between a peach and a lemon: scratches can be touched up, engine problems can be left undisclosed, even odometers may be tampered with. “To avoid paying for a peach while buying a lemon, buyers cut their offers. They might be willing to pay, say, $750 for a car they perceive as having an even chance of being a lemon or a peach. But the sellers of a peach logiBuilding-Products.com
cally reject such an offer. As a result, the buyers face ‘adverse selection’—the only sellers who will accept $750 are those unloading lemons. “Smart buyers foresee this problem. Knowing they could be buying a lemon, they offer only $500. Sellers of the lemons end up with the same price they would have received were there no ambiguity. But the peaches all stay in the garage. “Information asymmetry” kills the market for good cars.” Structural wood panel buyers rely upon qualified inspection and testing agencies like the APA to routinely test and certify the quality of the products they buy. This creates an incentive for individual panel producers to “push” the standard. A passage from Ackerloff’s famous paper: “There are many markets in which buyers use some market statistic to judge the quality of prospective purchases. In this case there is an incentive for sellers to market poor quality merchandise, since the returns for good quality accrue mainly to the entire group whose statistic is affected rather than to the individual seller. As a result there tends to be a reduction in the average quality of goods and also the size of the market.” When the industry is young, industry production technologies vary little and raw materials are relatively homogeneous (e.g., OSB), this isn’t a major problem. But it is a serious problem when the inspection and testing agencies find it difficult or impossible to keep up with a very rapidly changing industry. An example would be today’s overlaid Douglas fir plywood industry. There are rapid changes underway on both the demand side (e.g., much higher alkalinity concrete mixes are now essentially “pulping” conform panels) and on the supply side (e.g., much reduced
supplies of small-knot, dense, Douglas fir veneers). The “market for lemons” is likely having a major effect on the size of this market today.
Overcoming the Market for Lemons How can individual panel producers overcome this “lemons market” problem, their industry’s “race to the bottom,” and depressed industry sales levels? They can offer company-specific product performance guarantees. Another approach is to more aggressively brand products. In either case, the mill’s products need to be clearly differentiated from their competitors’; as we discovered earlier, industry-wide, third-party quality certification is important but not sufficient. Like car buyers, panel buyers won’t chance paying peach prices when they may actually be buying a “dressed up” lemon. For some structural panel producers, product differentiation requires a major change in company culture. For instance, it is very difficult to produce innovative, differentiated products for the end use market if the company doesn’t also adapt a different supplier-buyer mindset. Supplierpartners are often critical to the structural wood panel producer’s differentiation. As industry competition comes to focus more and more upon only one of the “4P’s of marketing”—price— “lemons” tend to proliferate and industry sales volume tends to decline. – Roy Nott is president of Surfactor Americas LLC, Aberdeen, Wa., a German-owned producer of overlays, glue films, and press cleaning films for the global wood panel industry, with manufacturing operations in Finland, Germany and Malaysia. Reach him at roy.nott@surfactor.com.
The beauty of the forest is yours to sell Fencing • Decking • Timbers • Dimension • Siding
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PRODUCT Spotlight By Ben Roberts, TimberTown
Redwood vs. cedar R
EDWOOD.
CEDAR. A battle for the ages in the decking and outdoor lumber industry. Who has what it takes to come out on top? To help us decide, we went to the source. For cedar, specifically western red cedar, we turned to the Western Red Cedar Lumber Association to find out all there is to know about cedar. Our source for information on redwood was Humbolt Redwood, America’s largest supplier of California redwood. So, what’s the difference between redwood and cedar? The research is clear: both redwood and cedar suppliers believe their product is the best. No surprise there. So which is really better, redwood or cedar? As we dug a little deeper into each product, we discovered some important factors worth mentioning. In our redwood vs. cedar research, we focused on four main categories: appearance, environmental impact, longevity and value. Whether your customers are building a deck, pergola or fence, here are eight factors that can help them decide between cedar or redwood.
APPEARANCE 1. Color It’s tough to determine a winner in this category, but there is definitely a difference in appearance. Western red cedar, unless stained a different color, will naturally have a yellowish tone, while redwood has a noticeably more reddish-brown hue (there’s a reason it’s called redwood). Both are beautiful in their own right, but if it will receive paint or a tinted stain, they may opt for cedar because it costs less and has a lighter natural color. Regardless of
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which wood is chosen, both will eventually turn a silvergray if not periodically maintained. Who Wins? It comes down to personal preference.
2. Grain The project or budget may determine the type of grain or number of knots they want in their wood. With 30 grades of redwood and 10 grades of cedar, you can get just about any grain you want with either product. Because redwood is harvested primarily from larger, older trees, there are typically fewer knots overall than its cedar counterpart. Redwood is also more readily available in “clear” grades, which means there are no knots at all. When it comes to overall smoothness, redwood has a slight edge over cedar. Again, it’s hard to choose a winner of this category since every project requires a different look, but based on grade availability redwood wins by a narrow margin. Who Wins? Redwood for smoothness, but your project will ultimately decide.
ENVIRONMENTAL IMPACT 3. Eco-Friendliness Although this list is supposed to show the differences between redwood and cedar, these species are very similar when it comes to being eco-friendly. Both have product certified by the Forest Stewardship Council, both are 100% natural products, and both claim to be more environmentally friendly than composite brands. Building-Products.com
Because redwood is primarily harvested in Northern California and western red cedar comes from Canada, the environmental requirements are almost identical. Who Wins? They’re both winners in our book!
4. Sustainability Western red cedar and redwood may have the same environmental certifications, but can they grow new trees as fast as they harvest old ones? Sustainable growth is obviously important if either industry plans to stay in business, and both have done an excellent job at harvesting responsibly. Since it takes 50+ years for cedar or redwood seedlings to be harvestable, the growth process isn’t an exact science. According to a cedar growth study, second growth western red cedar is just beginning to be harvested and is producing a high quality product. However, Humbolt Redwood takes it a step further saying they harvest less than the annual growth rate, meaning they are growing more redwood than they are harvesting. Who Wins? Neither product is going away any time soon, but redwood is the one saying they grow more than they harvest.
Redwood and cedar naturally contain tannin (a chemical that gives the products their color), which keeps the wood insect resistant. Since California redwood has a higher level of tannin, it could be more rot resistant than cedar. Who Wins? It’s too close to call.
VALUE 7. Availability At the end of the day, it all comes down to supply and demand. The availability factor will depend on your region, but overall western red cedar is in much greater supply than California redwood. Producing almost 1 billion bd. ft. a year, cedar is easily accessible anywhere in the country. Redwood is definitely the popular choice for projects in the Northwest region of the U.S., but it may be harder to find exactly what you need for your project in other regions. W ho Wins? Most areas: cedar. In the Northwest: probably redwood.
8. Cost Comparison Primarily due to their lower availability, redwood products typically cost more than a comparable grade of western red cedar. The price differential will vary by region; for example, here in Texas (headquarters for TimberTown) redwood products are 15% higher in cost on average than the same cedar products. This is why almost all the fences built in Central Texas use cedar fence pickets. So, although redwood may have a leg up in strength and durability, cedar has the best price point. Who Wins? Usually cedar, but depends on the region.
REDWOOD reportedly has a slight edge over cedar in the strength department. (Photo courtesy of California Redwood Association)
LONGEVITY 5. Durability Finally, a difference that we can actually measure! To determine the hardness of redwood and cedar, we are using the Janka hardness test. Redwood—with a Janka rating of 450 lbs.—is about 23% stronger than cedar (Janka rating of 350 lbs.). Whether or not the extra strength is necessary for your project is up to you, but clearly redwood is more durable than cedar in general. Who Wins? Redwood, but that doesn’t mean cedar can’t handle your project.
6. Maintenance Both cedar and redwood give almost identical tips for cleaning, color restoration, and finishing. With either product, soap and water is going to clean most dirt and stains. Mildew can be taken care of with a little bleach and water. For restoring color (due to extractive bleeding or iron stains) use an oxalic acid-based product. Building-Products.com
MORE WESTERN red cedar is processed each year than redwood. (Photo courtesy of Western Red Cedar Lumber Association)
AND THE WINNER IS... Up to you. The bottom line is customers should choose the best option for their specific project. Thinking about the look they want, budget and product availability will help decide if redwood or cedar is better. Regardless of which species they choose, they’re getting an excellent product! – Based in Austin, Tx., Ben Roberts is marketing director for TimberTown, which operates lumberyards/showrooms in the Austin and Atlanta, Ga., areas, specializing in outdoor living products. Find out more at www.timbertown.com. September 2017
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COMPETITIVE Intelligence By Carla Waldemar
New Blood T
HINGS LOOKED BAD .
Then, as time went on, things looked even worse. Billy Hyman, in his 80s and a man with no family to succeed him, put his lumberyard in South Memphis, Tn., on the market in 2006. But folks were closing yards that year, not buying them. Hyman had purchased Jordan Lumber—an operation launched back in 1890—after he returned home as a veteran of World War II. He’d gone on to move the company to another location, purchased adjoining land, and installed a line of hardware. He was also a politician who chaired the city council and, with a partner in Hyman Homes, built subsidized, lower-rent housing as part of the city’s revitalization. So Billy wanted to leave a legacy, not a sign reading “Out of Business.” Dan Fuller watched it all happen. Dan, today’s general manager, had joined the lumberyard in 1996 at age 23. As he recalls, “Hyman tried to sell the company for eight or nine years as it slowly went downhill. Our best year, 2006, we did $11 million; then gradually, year after year, things got tougher and tougher.” Until, voila: In 2015 a pair of young bloods—brothers Don and Rick Youngblood, to be exact—bought the business out of the blue and at a most favorable price—a winwin for both parties. Don is owner of a successful auto
parts operation and Rick, a commercial cabinet shop. Residential cabinetry was what Hyman’s customers sought, Rick knew, but the five-acre property allotted him space for his shop and access to products, and at a good price. Neither had ever owned—much less, worked in—a lumberyard before. “Never once!” as GM Dan explains it. “So the brothers asked me, ‘What needs doing?’ ‘I’ll be honest,’ I responded. ‘Nothing’s been touched for years.’” (Okay, there was a snippet of good news, too, which was the outfit’s location—in an impoverished area that would never be a shopping destination, but with good highway access, even to customers in Mississippi and Arkansas. “Plus, this is a very industrial area, and we handle lots of their maintenance.”) Now the bad news: He told them, “We need a POS. An outside salesman. And advertising”—all of which endeavors had previously added up to zero. Fast-forward a few short months: By mid-2016, Youngblood Builders Supply had acquired a brand-new POS; remodeled and expanded the entire store under the guidance of its supplier, Memphis-based Orgill; added a new roof and 5,000 new items, plus a paint department; and staged a grand re-opening celebration. Oh, and—what proved to be a vital step—hired its firstever outside salesman. “I found him,” Dan says, “by talking
NEW OWNERS relied on the counsel of longtime employees to identify opportunities to rebrand and reinvigorate the Memphis lumberyard.
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GRAND REOPENING was carefully crafted to celebrate recent changes and to highlight new and expanded product lines, with an assist from several top vendors.
to folks I knew. He’d just left a big-box store, tired of that style of doing business, and already knew of the company. He had contacts, relationships. And with our new POS, he could access our system without actually being here. “Sure,” Dan allows, “there are growing pains right now as business has started growing again. We used to have five delivery trucks and now have just one. I could use a second, on and off, but it’s hard to find a driver who’d agree to double up in the yard. Still,” a smile creeps into his voice, “now I’m hearing, ‘It’s fun to work here again!’ when it used to be ‘Will I still have a job next week?’ Now they know we’ll be here and they have a future.” The firm has always focused on smaller contractors and remodelers, rather than the mega-builders. So when Dan changed the product mix, he did it with them in mind— added more power tools, welding supplies—“pro lines of product, beefing them up quite a bit. Also, for the property management side, no longer just six doorknobs in stock— rather 50. And we added $30,000 to $50,000 in paint.” He continues: “Our biggest customer in years past had never even been in here, just knew the phone number—and still today, many have never been in the store. We take pride in offering service by a local company, not a big box—more agile than the box stores. We gained the trust that we can take care of them, serving a variety of pros— some just putting up a fence or pergola, others renovating whole apartment buildings: pretty varied. And because we’re in an industrial area—refineries, fertilizer and chemical plants—we provide those businesses with things like cleaning products. “We’ve also dealt with the city for years (thanks to Mr. Hyman) and have contracts with the City of Memphis and the housing areas. They like that we’re only a 10-minute drive from downtown. Maybe we might not have an item in stock, but we can deliver it within a day or two, which they really love. We can get just about anything—we have connections—such as a recent request for hip-waders for the sewers. And at a good price.” “We can take care of them,” Dan underscores, thanks to a veteran crew of 17. “I’ve been here 21 years, and three of them have been here even longer! We’ve also added a few new people and hope to add more as we grow.” Many of the yard’s customers are just as long-term, too—and that may pose a problem. “They’re older, and we hadn’t replaced them, with no advertising nor outside salesman. But we’re starting to see some new guys—people stopping in for 2x4s to remodel a bathroom or do a room Building-Products.com
EXPANDED PAINT department has been a big profit generator.
addition: our core business. We’re not a giant like 84 Lumber, and we’re not on a railroad spur, so we can’t always compete. But we do carry laminated beams and rebar—just on a smaller scale. Plus, we make it quick for them. Contractors can park close, walk in, get expert help, and we’ll load their truck without them having to handle the materials, which you won’t get at 84. Plus, our prices are as good, if not better, fighting that misconception.” Advertising was another goal. “We haven’t gotten to where we need to be yet,” Dan concedes. “Instead, we spent the last year on ten years’ worth of repairs to the property. So we haven’t gone ahead with advertising yet; I haven’t figured out the budget.” In the meantime, he’s doing fine with (free) social media. “It’s been our ally. Our home page pops up on a search.” And, of course, it promoted the grand re-opening. There had been discussion on when to announce the new owners, new name: “‘Should we do it right away?’ they asked me. ‘No, it might scare folk off,’ I advised. ‘Let’s change everything, then show it off and change the name.’ Many customers never realized there were new owners, and people fear change.” So last September, the event was staged. “We unveiled our new name and we cooked every day, an outside barbecue. We brought in eight or 10 vendors, had give-aways. We showed the pros our change in inventory, like adding many more power tools. We’d decided to jump in, feet first, and sell that stuff. It was a way to tell everybody that we’re still here, and look at what we’re doing to help you do your job. We saw a lot of first-timers, too. They told us, ‘We never knew you were here,’ though we’d been here forever. Also, ‘We didn’t know you were still around.’” Around? You bet. “The recession actually helped us. We’d hear horror stories here in Memphis about a yard with one or two big-builder customers who’d gone belly-up and took the lumberyard down with them. But our sales are up 15 to 20% over last year, the first improvement since the recession. [Owner] Rick stops in every day, but trusts me to oversee everything; I enjoy that faith. So I guess I’ll stick around another 20 years!” Carla Waldemar cwaldemar@comcast.net September 2017
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OLSEN On Sales By James Olsen
Friction: Challenging the status quo smooth partnership. But it was not given, it was earned. If we do “sales” the wrong way we will have little, if any, friction in our livesbut we won’t sell much either.
When Friction Happens
“Y
OU CAN’T
start a fire without a spark.” – Bruce Springsteen, “Dancing in the Dark”
Change is difficult. People like things to stay the same. Especially people with a real or (in our case) perceived advantage. In history, the ruling party never gives up its power without political, physical, or economic pressure, from the real or (as in our case), perceived underdog. The “status quo” in sales is: salespeople give the customer their price or their proposal and the customer says, “I’ll let you know.” Sadly, most salespeople—80%—go along with this way of thinking and doing business. This status quo doesn’t work for us. Master Sellers understand this and work from the first contact/conversation with customers to establish a give-and-take/partnership relationship vs. a “give me the price and I’ll let you know” relationship.
Friction As salespeople, we need to embrace our roles as change agents. Change by definition creates friction. Master Sellers understand this and get down to doing it. They don’t hold back. They are not passive participants in the sales process. They are committed advocates for their proposal. What people want is a life of smoothness. This is not our role. Many salespeople look at the person who is killing it and think, “I can’t wait until I have the accounts and relationships Susan has; then sales will be fun and profitable.” This is a myth. Susan may look like she has zero friction with her customers, but I guarantee that she does. Susan makes it look easy, because she is confident and professional, but she still has to navigate the same situations that the struggling seller does. She actually has more because she asks for and expects to get the business (way) more often than the seller who is afraid of friction. In many cases we are seeing a relationship between Master Seller and client at the mature stage. The Master Seller has already done the “friction work.” The result is a
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Customer: “I’m happy with my current supplier.” Master Seller: “I understand you have great suppliers. You are a great company and I’d expect nothing less. But we are working with customers just like you that also have a strong network of suppliers. We are helping them compete in this hyper-competitive market and we will do the same for you. Give us 90 days to prove we can help you.” Customer: “I’ve got to check my inventory.” Or “I’ve got to walk the yard.” (Not true. About 95% of the customers we talk to every day are sitting at their desks and are looking at a real-time inventory system!) Master Seller: “Okay, John, I’ll wait. You’re just going to pull it up on your computer, right?” Or “How do you check your inventory?” Customer: “I’ll let you know. I’ve got to get a couple more numbers.” Master Seller: “Why don’t we put it together right now?” Or “I’d love to let you get back to me, Zach, but this won’t be here in 15 minutes.” Or “Hey, Sara, you don’t need to check it, we’ve already scoured the market for you; this is without a doubt your best deal. What’s your order number?” Or “I know you want to shop this and get your best price, which in some cases makes sense, but right now, shopping is going to cost you money. This is the last truck we have at this price for this shipment. There is no better deal. Let’s put this one together.” Sellers who struggle do everything in their power to avoid friction. And they succeed. They have little friction in their daily (sales) lives, but underachieve because of it. Master Sellers realize that causing and diffusing friction is a good thing. They are not afraid of the NO–they search it out. The sooner the customer says no, the sooner they will say yes. We are the straw that stirs the drink. It will not stir itself. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
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THE REVENUE Growth Habit By Alex Goldfayn
Are internal communications your missing link to growth? A
work with clients revolves around communicating with customers and prospects. I teach salespeople how to communicate to existing customers about all of things they can buy from you, because current customers are only consciously aware of about 20% of what they can buy from you. And how to communicate with prospects, not just customers. Because too often, our days are made up of answering calls from current customers who need something, or have a problem. These calls come one after another, and when they do, we don’t get a chance to call on prospects. I also implement systems of marketing communications: building your list, sending a good newsletter every two weeks, and a “did you know” email on in-between weeks. Recently, however, I’ve also found myself working another kind of communication, and found it to be equally important: internal communications. It turns out, some of my clients have entire departments that don’t interact with each other on important issues like what products your customers might need. For example, at many companies, the internal customer service people don’t really talk with the external salespeople very much. They might discuss urgent, pressing things like an angry customer, but they rarely have the time (or, frankly, the interest) to alert their sales counterpart about a product they just uncovered a customer is buying. You know, WE sell that here, and everybody knows one P.O. is better than two! Let’s say a customer service person is talking with a customer who mentions their frustration with another supplier. This should immediately be communicated to this customer’s salesperson so he or she can call this customer on the phone. Why don’t you let ME help you with that? Many companies have orders or quotes that occur on their web site, but often the salespeople are not copied on these electronic communications. Why not? This is a glorious lead generation resource. Imagine if salespeople were asked to call—again, on the phone—customers who request a quote or enter an order online? I saw your order come through, and I wanted to learn a little bit more about what you’re sourcing and how we might be able to help. We handle many products that complement the one you ordered. Also, here’s a fascinating one: I teach nearly every client to offer additional products and services to your customers, as discussed above. But many times this staff doesn’t know what they can offer! The customer doesn’t know what else they can buy from you, but neither does the staff! And if the customer-facing people don’t know what they can sell, how can customers buy it?! LOT OF MY
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Finally, while I speak to the customers of my clients on nearly every project to collect testimonials and present them to the customer-facing staff in the workshops I conduct with them, these testimonials are frequently not seen again. If you have good testimonials from customers, you should be actively placing them in front of your team. Let people see how good they are. Put them on the walls! Put them into people’s email inboxes. Trickle them out. Remind people what they do. They are not selling products and services, they are improving lives and companies. So then, it seems that some key internal communications, systematized, can significantly improve revenue at most companies. These communications lag because people are busy! They get to work, the phone starts to ring, and keeps ringing, until it’s 4:30 p.m. and time to go home. What to do? Implement fast, simple internal communications practices: Conduct customer huddles. Once a week, with all customer-facing staff. If they’re remote, they can join via web meeting. Thirty minutes maximum. Every person brings a customer to the table who can buy more, or is buying from another supplier products or services that you can help them with. Do these meetings weekly, and think of them as focused conversations for internal referrals. Create a categorized list of did you know questions. If a customer buys this from us, here are four or five additional products or services that you can and should offer them. Tape the lists to the bottom of monitors. Ask people to communicate one such product or service on every call. Email your customer-facing staff one or two products or services weekly. That’s right, just remind them what else they can offer. Here’s the key: your staff doesn’t need to be experts in the other products or services they offer to customers. They simply need to offer the products or services, and if there’s interest, they can connect them to the appropriate experts. Remind your people how good they are. Systematically communicate what else they can offer your customers. Help them sell more by communicating with them more. Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com Building-Products.com
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TRANSFORMING Teams By Claudia St. John
The tricky landscape of medical marijuana I
RECEIVED A CALL from a client two weeks ago who was struggling with a tricky personnel issue on the topic of drug testing. Bob, who owns a company in Vermont and has a policy of mandatory drug testing for all new hires, wanted to hire a new shift manager for his small manufacturing plant. The problem was that the highly-qualified man he wanted to hire has a medical marijuana prescription to treat his PTSD. Bob’s questions were these: “Can I make an exception and not drug test him? If I drug test him, can I overlook the flag for positive marijuana use? If I overlook his use, what do I do about other future hires? Do I have to pass on him as a candidate because of his legally-prescribed drug use?” Bob’s dilemma is increasingly common as states and local jurisdictions move to legalize pot. To date, 29 states and the District of Columbia have passed measures to legalize medical marijuana use, while eight states and the District of Columbia have legalized recreational use. To make matters even more complicated, marijuana remains a Federal Schedule 1 Controlled Substance—the most tightly restricted category of substance. Thus, for many employers, all this creates a point of conflict between federal law, state law, and their own company policies. And that’s not the end of it.
Zero-Tolerance Workplaces For employers seeking to maintain a zero-tolerance, drug-free workplace, navigating these conflicting requirements just got more complex given a recent high-court ruling in Massachusetts. In the case, on July 17 the state Supreme Judicial Court ruled that Advantage Sales & Marketing LLC, which fired new employee Cristina Barbuto after her pre-employment drug screening showed positive for marijuana use, could be sued under federal handicap discrimination statutes. Ms. Barbuto suffered from Crohn’s disease and used medical marijuana to stimulate her appetite, according to court documents. The court ruled that allowing off-duty medical marijuana use constituted a reasonable accommodation for Barbuto’s disability. So, for employers in Massachusetts, the decision has the following impact:
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• They may not adopt a “zero-tolerance” prohibition of pot use and must instead attempt to accommodate use that is: (1) offsite and (2) certified as medically necessary. • They may not terminate or discipline employees solely because of their offsite medical marijuana use. • They may restrict onsite medical pot use and do not (yet) need to accommodate offsite recreational use. While this decision pertains to employers in Massachusetts specifically, all employers should take note because there is a growing trend within the courts toward protecting the offsite legal use of medical marijuana. For example, in May of this year, a Rhode Island court ruled that employers may not discriminate against individuals based on their off-work pot use. Another test will be how the courts view Florida’s new bill that attempts to protect employers who wish to maintain a drug-free workplace by specifically stating that they do not need to accommodate the medical use of medical marijuana. That statute is certain to face a court challenge. For employers that wish to maintain a drug-free workplace, it’s best to be mindful of the court cases in your state and be sure to craft a clear policy that does not intend to discriminate against individuals based on their disability. And employers who choose to deny employment or to disBuilding-Products.com
cipline or terminate employees based on their medical marijuana use are strongly encouraged to seek counsel prior to taking action.
Accommodating Medical Marijuana Use For employers that decide to accept their employees’ use of medical marijuana, they should: • Create a well-crafted policy that clearly articulates what use is allowed and in what form, when use is authorized (before or after work), whether there are safety sensitive positions that require special consideration, what medical documentation is required, and a clear statement that the policy is not intended to discriminate against individuals with disabilities.
Q. With Labor Day right around the corner, we have decided to keep the business open on the holiday. Do I have to pay a premium for employees who are scheduled to work? A. There is no obligation under federal or state law to pay premium pay for holidays. Of course, you are obligated to pay overtime for any hours in excess of 40 hours in the workweek, but premium pay is not statutorily required. Therefore, your decision should largely be guided by your existing holiday pay policy, if one exists. If one doesn’t exist, realize that how you handle this situation may set precedence for future working holidays, so make your decision with that in mind. • Require written approval from the prescribing doctor that includes the legal validation, medical basis, schedule of use, methods of administration, accommodations or restrictions, and expected length of use. • Require employees who are certified to use medical marijuana to report any changes in the marijuana product they use, the amount of marijuana they are prescribed, how often they use it, their schedule of use, and how they ingest the drug.
• Prohibit marijuana use while an employee is at work (or on the way to or from a job site) unless the employer is certain that the using worker, co-workers, or the public are not at risk from any neurocognitive and judgment impairment associated with that worker’s marijuana use.
Mandatory Drug Testing Given the quickly evolving landscape of legal and medical marijuana use, employers should be mindful about instituting mandatory drug testing of pot. As was the case in Massachusetts’ Advantage Sales & Marketing case, denying employment to individuals using medical marijuana can leave you vulnerable to a claim of discrimination. Some employers within states with legal recreational and medical marijuana have simply dropped the drug from the screening panel. Employers who maintain marijuana on their drug screening panel are wise to treat positive marijuana test results with care—rather than enforcing an automatic denial of employment, discuss the results with the employee, seek to understand the nature of the individual’s use and consider whether an accommodation is justified.
Safe Workplaces Finally, no statute or state laws require an employer to tolerate intoxication or impairment while on the job, particularly if that impairment can result in injury or harm to the company or its employees. Just as you would do for someone taking legally prescribed pain killers, if you suspect impairment, be sure to release the employee from work until he or she is no longer impaired, obtain the necessary documentation for the prescribed medication, and ensure the employee’s use is appropriate and conforms to your drug policy.
Claudia St. John Affinity HR Group, Inc. claudia@affinityhrgroup.com
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Tum-A-Lum Buys 8th Yard Browne Lumber, Friday Harbor, Wa., has been acquired by Tum-ALum Lumber parent TAL Holdings. Browne will continue to operate its 5-acre lumberyard with 16,000-sq. ft. home center/lawn-and-garden center as Browne’s Home Center, as a division of TAL. Tal also operates seven Tum-A-Lum locations in Oregon and Washington. Browne was founded in 1947 by Jim and Inez Browne. “Browne’s was founded on the same basic business values as all seven of our locations— building honest, fair and ethical relationships with our customers,” noted TAL CEO M. David Dittmer.
Arizona Border Town Loses Last Hardware Store Robinson’s True Value Hardware & Home Center, Nogales, Az., is the latest longtime retailer to close in the city’s beleaguered downtown. The town’s main thoroughfares are now dotted with dozens of empty storefronts. It’s also lacking a hardware store for the first time since the 1920s. Store owner Jim Capin said Nogales has yet to recover from the 2008 economic downturn and is seeing fewer shoppers come across the border from Mexico. Capin’s family bought Robinson’s in the 1960s; he, his brother, and his brother-in-law then bought it in 1995. Robinson’s is selling the last of its merchandise at 50% off, then will liquidate its fixtures and office supplies. Capin’s company, JNG Holdings, continues to operate five other locations in Arizona and New Mexico. He’s also searching for office space in Santa Cruz County where his store manager in Nogales, Martin Medina, will maintain commercial accounts
and take special orders that can be picked up by JNG’s True Value store in nearby Green Valley, Az.
Historic Kalispell Lumber Building Spared The historic Kalispell Lumber Co. warehouse building in Kalispell, Mt., is being dismantled, board by board, and will be reassembled at a new location, for a new purpose. In early August, Heritage Timber LLC, Missoula, Mt., began the threemonth process of taking apart the 78year-old structure. They expect to salvage about 90% of its 220,000 bd. ft. of wood, much of it tight-grain, old growth cut in oversized dimensions— 10-ft.-by-12-ft. posts, 22-ft.-long beams, and 35-ft.-tall roof trusses. The original Kalispell Lumber sawmill closed in 1961. The equipment was sold off and sections of the property were reopened as other businesses. The old log yard became a series of storage sheds. A grocery store was built at the western edge of the property. And, for decades, the Wright family operated a retail yard and hardware store called Wright’s Kalispell Lumber. They recently sold to a redeveloper, who promised to preserve the old building.
Hardware Store Adds U-Haul The former home of BB Hardware Supply, North Fork, Ca., is now a UHaul dealer. Last year, Ed Johnson, now 91, sold BB after 38 years to his manager, Pat Coleman. Coleman renamed the hardware business Coleman & Sons and moved it next door. He’s now opened North Fork Rentals @ The Hardware Store, offering trucks, trailers, towing equipment, and moving supplies.
SUPPLIER Briefs Premier Lumber , Orchards, Wa., suffered damage to two structures in a fire Aug. 7. The cause is under investigation. Kingspan Insulation, Atlanta, Ga., will begin production of polyiso insulation in North America, and is currently appraising locations for three new manufacturing lines. Locations under consideration are at existing plants in California, Florida, Ohio, Virginia, Ontario and British Columbia, as well as new sites in Nevada and Texas. International Wood Markets Group, Vancouver, B.C., has been acquired by Forest Economic Advisors, Littleton, Ma. Kebony clear radiata pine and southern yellow pine decking have been ICC certified to comply with both IRC and IBC codes for preservativetreated wood, structural integrity, and d ecay resistance. Cali Bamboo, San Diego, Ca., has been included on the prestigious Inc. 5,000 Fastest Growing Private Companies list for the 9th straight year, with a ranking of #1,539 for 2017. This summer the company also came in at #42 among the San Diego Business Journal’s annual Top 100 Fastest Growing Private Companies— its 8th straight year on the list. A RAUCO North America , Atlanta, Ga., is celebrating 20 years of selling AraucoPly in North America. Anniversaries: Old Trails True Value Lumber, Williams, Az., 60th.
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Huge Inventory Lost in Fire Wood Recovery Inc., Junction City, Or., was back operating its wood-chipping operation Aug. 14, despite log piles still smoldering from a devastating fire the day before. The mill was disabled when the early morning fire burned into the electrical room, but owner Denny Van Wyk was able to bring in portable chippers. Authorities are investigating the cause of the blaze. Security cameras show the fire starting in the middle of the log deck, in the middle of the night. Flames spread quickly along the quarter-mile stack of wood, before reaching the mill itself. Eighty firefighters from 11 fire agencies in two counties responded.
NEW TORRANCE location puts Ganahl closer to the half of its customers in Los Angeles County.
Ganahl Opens South Bay Yard On Aug. 4, Ganahl Lumber, Anaheim, Ca., officially opened its 10th location and second in Los Angeles County—an 18-acre yard in Torrance, Ca. The new location features an 86,000-sq. ft. building supply store, 12,700-sq. ft. custom milling facility, 40,500-sq. ft. drive-thru lumber warehouse, and a 775-ft.-long rail spur. The fleet includes a half-dozen brandnew big rigs and nearly two dozen forklifts. Even the location’s icon—an antique head rig similar to the one in
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Ganahl’s logo and those outside every Ganahl location—is the chain’s largest. The 24-ft.-tall, 10-ft.-diameter, five-ton head saw spent 92 years cutting giant old growth Douglas fir and redwood logs in a Fort Bragg mill before Ganahl salvaged it from a Northern California field. According to president Mark Ganahl, 50% of the chain’s shipments head to Los Angeles, so it made sense to increase its physical presence in the county. Its only other L.A. site opened five years ago in Pasadena.
September 2017
Chinese Hardwood Plywood Hit with Steep Tariffs The U.S. Department of Commerce plans to impose a preliminary antidumping tariff on hardwood plywood imports from China ranging from 57.36% to 114.72%, in addition to countervailing duties between 9.89% and 111.09%. Nearly all Chinese firms will end up paying a combined preliminary duty of more than 67%. A final ruling was expected by the end of August. “This announcement is another strong win for the hardwood plywood industry,” said Hardwood Plywood & Veneer Association head Kip Howlett. “The jobs of thousands of American workers are on the line, and this sends a signal to China that we will not tolerate their unfair trade practices.”
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MacBeath Stakes Out Stockton MacBeath Hardwood, Edinburgh, In., has opened a distribution/retail facility in Stockton, Ca., stocking a full selection of hardwood lumber, sheet good products, and woodworking accessories. The new location offers a 63,000-sq. ft. warehouse, fenced and paved yard, and 9,200 sq. ft. of retail space on three acres. General Manager is M.G. Gutierrez, retail manager John Knight. According to president/CEO Jonathan MacBeath, “This property was purchased with the full intent of being a hub location in Northern California, and will feed the branches in the Bay Area—in San Francisco and Berkeley.”
Japanese Firm Buys Senco Senco Brands, Cincinnati, Oh., was acquired by Kyocera Corp., Kyoto, Japan, and will operate as part of its Global Cutting Tool Division. Senco will continue to provide the powered fastening category’s most comprehensive line of pneumatic and cordless nailers, staplers, screwdrivers, and fasteners through its professional distribution network in over 40 countries. Its global headquarters will continue to be based in Cincinnati, with existing staff and management staying in place and leading the integration transition to new ownership.
CT Darnell Celebrates 30 Years Anyone who has shopped at a home center or worked in lumber has likely been to a location that CT Darnell Construction, Alpharetta, Ga., designed, built, or equipped. The family-owned business started in Atlanta in 1987, supplying its Sunbelt Rack storage systems to burgeoning big-box retailers. Soon after, it expanded its offerings to the lumber and building materials market and other industries. Today, CT Darnell works as a general contractor and rack system provider throughout the U.S., Canada and the Caribbean. It has built or equipped facilities for Lowe’s, PetSmart, HD Supply, and numerous other companies. Early on, the big-box format presented a challenge: how to merge warehouse and retail space, while protecting products from damage and making self-service easy. Sunbelt’s storage systems and fixtures met the need, providing an ideal solution for the LBM industry. Over the years, offerings were expanded to site planning, design and construction of LBM and retail facilities, as well as site renovations. CT Darnell offers a full line of steel buildings and integrated rack-supported systems that
optimize inventory, protect product, and make picking product more efficient. It also continues to enter additional markets, including chain restaurants, manufacturing plants, and fuel/trucking facilities. “The racking products my father introduced 30 years ago gave big-box retailers a better way to merchandise their stores,” said president and owner Travis Darnell. “That vision has driven the direction we’ve taken ever since. Ultimately, I see us in the business of improving sales and operations for our customers—and our equipment, design and construction services are the way we deliver that.”
LP to Buy International Barrier Louisiana-Pacific agreed to acquire International Barrier Technology, Watkins, Mn., for $22 million. Barrier, which makes the fire retardant coating used in LP FlameBlock fire-rated products, will operate as a wholly owned subsidiary of LP, as part of its OSB business. LP CEO Brad Southern said the trend for more fire resistance in buildings continues to escalate, driven by changing building codes and their enforcement. “Over the last seven years we have validated the market acceptance of the FlameBlock brand and demonstrated strong sales growth,” he said. “Flame retardant products are a key development target of our growth and innovation plans.” The deal, expected to close by the end of the year, is subject to the shareholder and court approval.
Deal Brings Trex into Commercial Trex Co., Winchester, Va., has acquired the assets of SC Company, the country’s leading manufacturer and supplier of custom architectural railings and staging solutions. The purchase expands Trex’s reach into the growing commercial arena and serves as the foundation for the launch of its Trex Commercial Products subsidiary. “We have been eyeing the commercial market for some time and are thrilled to have found an ideal entryway with SC Company,” said Trex CEO/president James Cline. “Beyond diversifying our business, this acquisition increases our internal capabilities with custom design and engineering, while also providing us access to—and credibility within—the contract architect and specifier community.” SC has two product categories: SC Railing, which custom-designs railings for stadiums and arenas, and Staging Concepts, which serves sports and other events. Trex Commercial Products will operate from SC’s existing facilities in Brooklyn Park, Mn., and Fort Mill, S.C.
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THINKING Ahead By Steve Cheatham, Everwood Treatment Co.; Warren Reeves, Wholesale Wood Products; and Devin Stuart, Roseburg Forest Products
Technology: Relationship killer? P
I of our discussion on relationship-based business explained the benefits of nurturing a personal connection with key buyers or sellers. While suppliers and distributors of wood products have long embraced this style of workplace courtship, the industry is graying and times are changing. The question now becomes whether a younger workforce—and its strong attachment to all things cyber—will reverse a time-honored trend and put relationships on the rocks. ART
Don’t Email Me, I’ll Email You Email alone might test the fidelity of some old-school believers in relationships. Why put all that energy and effort into maintaining personal ties to a partner when you can reach out to the masses with a single communication and secure a deal for the lowest price with a simple click or tap? Because when you do, you lose that high touch that customers value—that’s why! Relationships are built on the Internet… said no businessperson ever. And that’s why taking the easy way out with email just doesn’t happen with a lot of us, as tempting as it might be for some. Even if the digital trend picked up more momentum, the push-back against it would probably
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grow, too. The industry players that continue to pick up the phone or meet in person to do business might even win favor over their impersonal, faceless competitors.
Good Relationships Start with Being “Friends” That being said, it’s fair to say the online movement is unlikely to completely stamp out relationships in our sector. In fact, it could even enhance them to some extent. Social media, for example, holds great promise for expanding and deepening relationships, particularly when used in combination with old-fashioned relationship-building. A distribution
September 2017
About NAWLA North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.
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A Special Series from North American Wholesale Lumber Association
sales manager who is Facebook friends with a vendor representative has a wide-open window into that individual’s personal life—and an invitation to comment on it. The medium, along with others like Twitter and Instagram, can unlock myriad opportunities to interact, congratulate, recommend, and share on a one-on-one basis! Social media also can play a role at the company level, although the approach would be entirely different. In that case, the aim might be to engage with and build a relationship with end users. It’s well documented, for instance, that some Millennials shun traditional advertising, preferring instead to base their purchasing decisions on what they know about a company and the products it sells. Savvy businesspeople realize that social media accounts offer an ideal way to educate this generation on a company’s identity and values. Through it, businesses will find yet another avenue to reach downstream and further those relationships.
The Bottom Line The decision on how to use email, text, and social media should hinge, of course, on the individual personal-
ities and preferences of the key people you work with. Everyone’s comfort level with technology varies, with a small band of holdouts still using fax instead of email. Others may not know a Tweet from a pin. A few don’t even own a cell phone, while others maintain running text conversations—both personal and professional in nature—with their business partners. The bottom line is that relationships are sticking around, but advances in technology can hurt or help them depending on how they are utilized. Suppliers and distributors who figure out where their contacts stand in terms of technology and tailor their outreach strategies around that will continue to cultivate successful and long-lasting relationships even in the face of innovation. – Steve Cheatham is sales manager for Everwood Treatment Co., Spanish Fort, Al., and a member of NAWLA’s marketing committee. Devin Stuart is marketing product manager for Roseburg Forest Products, Springfield, Or., and also on NAWLA’s marekting committee. Warren Reeves is vice president of sales & marketing at Wholesale Wood Products, Dothan, Al., and a member of NAWLA’s board of directors.
Outside Perspectives Marketing, branding and social media experts have written extensively about customer relationships and how to nurture them. A Forbes article by Dorie Clark, “4 Ways to Build Meaningful Business Relationships,” elaborates on some of the points made above about one-on-one communications via social platforms. In the March 2014 piece, the Duke University instructor and marketing strategist relays the advice conveyed to her by Mike Muhney, author of Who’s in Your Orbit? Beyond Facebook—Creating Relationships That Matter. Known for creating one of the first and most popular contact management systems, Muhney emphasizes that just having a Facebook page and occasionally updating the status is inadequate. The importance of individual conversations on social media simply cannot be underestimated, just as they should not be overlooked in face-to-face situations. “People think they’re staying in touch with everybody via postings, and it’s not true,” he explains. “You have to have a segment you focus on [in your networking].” At the same time, Muhney cautions against hooking up with every suitor that reaches out on sites like LinkedIn. That’s not “true” networking, he notes, comparing it instead to “relational voyeurism.” Racking up a bunch of connections with unknown individuals isn’t likely to be productive, according to Muhney, who says that businesspersons will not successfully tap into the full potential of their networks until they peel away
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all the layers to reveal the contacts who are well-known and trusted—and target them exclusively. In terms of leveraging social media for business-to-consumer purposes, another Forbes contributor captures the perspective of young entrepreneurs in his December 2012 article. “5 Ways Social Media Takes Customer Relationships to the Next Level” offers tips to help companies connect with customers and influence their buying decisions. Among those gems, the piece—written by Dave Kerpen, author of Likeable Social Media—recommends that businesses take the “social” part seriously. Besides extending excellent service, he stresses these sites have the potential to inspire and bring together people for a common purpose. Even in this kind of scenario, Kerpen says, businesses should consider “how can you connect your audience and strengthen your relationship?” The co-founder and CEO of the social media agency Likeable, he also suggests putting the focus on the customer rather than the product; accepting all opportunities to garner feedback, such as through crowdsourcing; and making it easy for customers to relay their experience. Kerpen singles out Facebook’s “Share Your Story” app as one way to accomplish the later. “When your customers are happy, your business will be too—so find a way to let people feel good and share their story about how your brand makes a difference in their lives,” he concludes.
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SELLING with Kahle By Dave Kahle
Is integrity a sales strategy? I
WAS SPEAKING to a group of professional salespeople in South Africa on the subject of integrity in business. Later at dinner, my host, who had been sitting in the audience, sheepishly shared with me that several of the people seated near her snickered at the idea. Evidently, to them, sales was just a series of transactions, and the salesperson’s job was to wring as much money out of each transaction as possible, under whatever means were necessary. Their position was, I believe, both sad as well as unwise. I believe that there are certainly practices in the business world where morality perfectly coincides with wise business. Integrity is one such practice. It is both good business as well as good morals. I believe it is such good business that salespeople should adhere to a no-exceptions policy of maintaining absolute integrity. Here, I’m not going to make the case for absolute honesty as a moral policy. There is, however, a powerful case to be made for honesty from a practical point of view. Honesty is a powerful sales strategy that is probably more important today than ever before. It works like this: If you have integrity, you save your customer time. In today’s frenzied world, time is more precious than money. If your customers cannot believe you, then they must spend hours, days or weeks of precious time confirming the representations you have made. If, however, they can believe you, then they don’t feel the need to check for the veracity of every fact or statement. Here’s an illustration. A few years ago, we attempted to purchase a condominium. The condo was in a resort location, and had been used as a rental unit. So it came fully furnished, down to the silverware and cooking utensils. We thought it was a good value, a wise investment, and offered the owner exactly his asking price. Shortly thereafter, word came from the real estate agent that the owner, on receiving our full price offer, had increased his price. The owner may have been looking at his action as a slick negotiating ploy. We saw it as a lack of integrity. If we couldn’t believe his stated price, then we couldn’t believe any of the representations he had made. We would be reduced to counting the number of knives and forks instead of believing the inventory sheet provided for us. We didn’t want to waste the time checking out every aspect of the deal. If we couldn’t trust some of the representations by the owner, then we couldn’t trust any. And, if we couldn't trust any, it wasn't worth it to us to take the risk in dealing with him. We walked away from the deal.
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We saw the owner’s lack of integrity as causing us to invest a great deal of time to assure ourselves that the risk was worth the money. The same is true of your customers. The more your customer trusts you, the less risk your customer feels in dealing with you, and the less time necessary to invest in understanding the product, service or program you are offering. From the customer’s perspective, it’s easier and less risky to deal with someone you trust than someone you don’t.
And that can translate directly into dollars. I’m always willing to pay more for something if I can buy it with less risk. In other words, if I can buy it from a company or person I can trust. On the other hand, I’d rather not buy something at all if I have suspicious feelings about the vendor. Here’s another example: A few years ago I grew jealous of my neighbor’s lawn. His was far greener, thicker and fuller than my lawn. It was because he had a lawn care service fertilize his lawn several times each year. I determined to do the same thing. So I obtained the name and phone number of the company he used, formed an idea of what the service would cost me, and decided to do business with that company. I called the company, ready to buy the service. When I inquired about the types of service available, the salesperson indicated that there were several options available. Now, I’m a visually oriented person, and I like to make decisions based on what I read, not on what I hear. So, I (Continued on page 36) Building-Products.com
Is Integrity a Sales Strategy? (Continued from page 34)
said, “Okay, why not come out and do the first application, and leave me a brochure so that I can review my options, and then I’ll make a decision.” The salesperson agreed. We then reviewed the details of my location, and the approximate date for the first fertilizer application. It was a deal. The salesperson then repeated our agreement, saying, “Okay, we’ll be out to do the first application and we’ll leave a brochure, and then you can cancel at any time with 30 days notice.” “What?” I said. He repeated his comment. “Wait a minute,” I said. “I only agreed to one application. I’m not committing to any ongoing contract until I check out all the options.” “But that’s not how we do it,” he stammered. “No,” I said. “But, but…” more stammers. “NO,” I said again. “Forget it. Cancel me.” What happened? Here I was, as good a prospect as there ever was. I was ready to purchase, having decided to use this company, even calling them to make the purchase. Yet something in what the salesperson said raised a red flag in my mind, and made me doubt the integrity of the person, and by inference, the company. He had originally said that I would be billed for only one application, and then implied that I was committing to an ongoing program. I viewed that as being deceitful, or at best manipulative. If I can’t trust them on that, on what can I trust them? There are lots of other lawn care companies, and the next one in the Yellow Pages got my business.
Life’s too short, and business is too busy to deal with people you can’t trust. The question, then, for you as a salesperson is this: Do your customers see you as trustworthy? That’s a difficult question to answer. You can’t just ask them, because you know you are unlikely to hear a candid response. But you can gain a sense of their perception of you by looking for some of the symptoms of trust or a lack of it. For example, if you find your customers sometimes buying from a higher-priced source, or buying a product or service you consider to be inferior, it may be that your customer doesn’t trust you! On the other hand, if you find your customers accepting your word, and choosing to deal with you, even when you are offering an identical product at a higher price, then chances are they do trust you. Your reputation for honesty and integrity has been a smart business strategy, resulting in measurable benefits to you. Unfortunately, a reputation for trustworthiness and honesty is not a result of one event or a single transaction. It doesn’t develop out of some clever phrases you memorize and repeat. Rather, it develops over time as you adhere to a set of ethical standards in small as well as big things. It’s not a technique you use, but rather it’s the person you chose to become. As you strive to adhere to the standard of absolute honesty and integrity in all that you do, you’ll develop a character trait that will become evident to everyone around you, including your customers. And that is good business as well as good morals. – Dave Kahle is a sales trainer, presenter and author of 12 books, including the best-selling How to Sell Anything to Anyone Anytime. Reach him at (616) 451-9377 or dave@davekahle.com.
Santa Fe Springs, Ca • www.hufflumber.net
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the finest timbers available, delivered to customers accurately, honestly & on time.
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Everything We Need Orgill’s Product Selection Was Exactly What We Were Looking For!
“When we considered switching distributors, we were looking at who could provide us with the product selection and level of stock fulfillment we knew we needed. Orgill was absolutely the best fit for us.” Philip Chapman, Kate Borroni and Stu Chapman l Woodson Lumber, Caldwell, Texas l An Orgill customer since 2014 Providing a Strong Product Selection
Using Orgill’s Programs
“We regularly use Orgill’s Smart Start and PREP programs
“We are constantly working to expand our product selection.
our product selection and ensure we are providing the most
outdoor lighting departments. We’re using Orgill programs to
in our seven locations. These programs keep us on top of comprehensive offering for our customers. ”
Right now, we are focused on enhancing our indoor and help us reset and update these categories.”
Finding Products at the Market
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service is exceptional, and it helps us provide our customers
send a handful of folks on our team. It’s the best place to see product lines.”
provide them to us quickly and efficiently. Their customer with that same high level of service.”
For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140
MOVERS & Shakers Patrick Burns has been appointed president of Patrick Lumber Co., Portland, Or. He succeeds Dave Halsey, president since 2014, who is now chief strategic officer and will continue trading lumber for the company. Josh Dean is new to lumber sales for Atlas Trading International, Beaverton, Or. Gary Pittman, lumber sales mgr., and Karen Hess, marketing & event mgr., have retired from Roseburg Forest Products, Springfield, Or., each following more than four decades with the firm. Stuart Gray, ex-Sears, is now Roseburg’s senior VP and general counsel. Jeffrey James, ex-Manke Lumber, is a new buyer for Chinook Lumber, Arlington, Wa. Cheryl Meyer, ex-Bay City Metals, is now repping TimberTech and AZEK decking for California Cascade Industries, Fontana, Ca. Matt Dunne, ex-Thompson Industrial Supply, is a new account mgr. at Universal Forest Products, Riverside, Ca.
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Tony Casey, ex-Metrie, has been named VP-sales for Composite Technology International, Sacramento, Ca. Jill Twedt was appointed VP, legal and corporate secretary at Boise Cascade, Boise, Id. In Lathrop, Ca., Dave Mollett, ex-Cal Truss Frame, is now engineered wood outside sales rep and Jonathan Zollinger, ex-Cullumber Engineering and J.M. Thomas, is a new EWP drafter/designer. Rikki McGoldrick, ex-American Building Supply, has joined OrePac Building Products, Sacramento, Ca., in inside sales. Mark W. Warren has joined Do it Best Corp., as Seattle, Wa.-based product sales mgr. for the Pacific Northwest. Don Gray has been added to the sales team at L&W Supply, Temecula, Ca. Paul Clark, ex-Foundation Building Materials, is a new ceilings specialist in San Jose, Ca. Ben Miller has been appointed Northern California sales director for Beacon Roofing Supply.
September 2017
Ryan Rumel, ex-BMC, has joined the outside sales force at Valley Construction Supply, Milton, Wa. Tina Tate, sales, Arauco North America, Portland, Or., has retired after 32 years in the business. Chad Crow, president and COO, Builders FirstSource, Dallas, Tx., will add the title of CEO on Jan. 1, succeeding Floyd Sherman, who will remain on the board through May of 2018. Brett Kelly has been named CEO of MOSO North America, Milford, De. Mark Clifton is vice president/general mgr. and Steve Osterman VP-sales. All three are ex-DassoXTR. James Gunning, Fiberon, New London, N.C., has been promoted to director of sales for the U.S. Paul Marvin, president of Marvin Windows & Doors, has assumed the position of CEO for The Marvin Cos., Warroad, Mn. Tony Tooke will serve as the new chief of the U.S. Forest Service. Helena Hanbasquette is overseeing cutbacks at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
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NEW Products
Capped Composite 2x4s Convenient Deck Lighting Wolf Home Products has launched Wolf Outdoor Lighting, a series of easy-to-install deck and rail accent products that are designed to add beauty and ambiance to any decking or railing layout with a simple “plug-and-play” assembly. This assembly, plus a single low-voltage power supply, enables homeowners to create a variety of configurations without the need for wire cutting, electricians, or permits.
Armadillo Decking has re-released a line of composite 2x4s with capped radius edges. They are offered in 12’ lengths, in seven colors: Campfire, Canyon Gray, Java, Night Fall, Painted Desert, Palomino, and Rustic Red. Matching decking, fascia and riser boards are also available. Armadillo 2x4s are fully wrapped with a capstock coating and are designed to be fade and stain resistant. Made of post-consumer recycled plastic or HDPE materials, they come with a limited lifetime warranty.
n ARMADILLODECK.COM (320) 243-7318
n WOLFHOMEPRODUCTS.COM (800) 388-9653
Contemporary Window Options
Traditional Yet Modern Siding
In an effort to provide more design solutions to homeowners, builders and architects, Kolbe Windows & Doors has added radius direct set windows to its VistaLuxe Collection. The new window line features the characteristic slim lines, narrow frames, and square details of VistaLuxe products, while “reshaping” the view of modern design.
James Hardie Building Products’ Aspyre Collection brings together the beauty and modernity of its Reveal Panel System with the distinctive, traditional profiles of its Artisan Siding. The combination of fiber cement products helps architects and builders achieve a design vision across the spectrum of architectural styles, from traditional to contemporary and modern.
n KOLBEWINDOWS.COM
n JAMESHARDIE.COM
(715) 842-5666
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Insulation that Fights it All
Snip in a Snap
Johns Manville’s JM CladStone Water & Fire Block Insulation is a noncombustible, continuous mineral wool insulation that allows for the effective drainage of water from an exterior wall cavity system. The insulation also is said to provide exceptional thermal efficiency, fire resistance, and acoustical performance. The product is specifically manufactured for superior performance in cavity wall and rain screen applications.
Milwaukee Tool has designed its next generation line of Aviation Snips to address common user frustrations, while offering top-notch blade performance and improved ergonomics, handles and locks. Each tool is made with forged blades and chrome plating for maximum rust protection, tool strength, and durability. For added utility, the cutter heads feature flush bolts to prevent the tool from getting hung up on sheet metal while cutting.
n JM.COM
n MILWAUKEETOOL.COM
(800) 654-3103
(800) 729-3878
The Perfect Post Feeney now offers a Single Corner Post for its DesignRail aluminum railing system with CableRail infill. By requiring only one post in corners instead of two, it lowers overall material and installation costs, and provides a more open feel and view. The post is predrilled with horizontal slots, allowing cables to easily pass through a 90Ëš corner.
n FEENEYINC.COM (800) 888-2418
Carbide Drill Bits
peeling, cracking, warping and rotting, and are also mold, mildew and moisture resistant. Guaranteed to be structurally sound, the kits come in six sizes and can be built anywhere, from attached decks and freestanding gardens to walkways and rooftops.
When it comes to hammer drill bit life and speed, Bosch BlueGranite Turbo Carbide hammer drill bits deliver 5x life and 2x speed versus standard masonry bits. The impact-rated bits feature an upgraded four-grind head, as well as a multi-grind centering tip for precise starts in masonry and other materials. They have been redesigned with a hex shank for use in hammer drills and impact drivers.
n AZEK.COM/PERGOLAS
n BOSCHTOOLS.COM
Tenacious PVC Pergola Kits AZEK Pergola Kits from Walpole Outdoors are the perfect solution for homeowners and contractors looking to add a classic design element to their property in a quick and easy way. In addition to coming pre-manufactured, the kits are crafted from superior PVC materials, meaning the structures are protected from
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September 2017
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Building-Products.com
At Royal Pacific you’ll pay no more, but get extra. We guarantee it.
Hi-borÂŽ brand treated wood is a borate treated wood product designed for interior house framing in Hawaii. Hi-bor treated wood resists attack by Formosan and subterranean termites and numerous household insects and pests, as well as fungal decay. Hi-bor borate treated wood is also backed by a 20 year limited warranty*.
FireProÂŽ brand fire retardant treated wood is treated with a patented formulation that contains no phosphates and has been shown to exhibit exceptional fire performance properties without compromising other critical engineering properties such as strength, durability, corrosivity, and hygroscopicity. FirePro treated wood is also backed by a 50 year limited warranty*.
Complementing the Craftsman Fypon is adding two new Crosshead designs to its polyurethane trim offerings that complement the historical characteristics of a Craftsman-style home. They replicate the height and look of a true wood built-up crosshead with cove and top trim. Both crossheads include a slanted top projection to allow for moisture run-off. Fypon’s polyurethane products are impervious to moisture, and will not wrap or crack. Additional end caps are offered to create a more modern look, available in 3-1/2� and 51/2� width to fit standard window and door trim.
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Advance GuardÂŽ borate pressure treated lumber is recommended for sill plate, furring strips, joists, studs, roof trusses, blocking, rafters, beams, and other framing applications. Advance Guard is also recommended for fascia, trim, wall sheathing, roof sheathing, and sub-floors. Advance Guard borate pressure treated lumber is also backed by a lifetime limited warranty*.
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The Right Saw for the Job Bosch’s Brushless Multi-Grip Reciprocating Saw combines an advanced handle design for greater comfort with a powerful 18-volt brushless motor and orbital/non-orbital action to deliver superior cutting performance. It’s a reciprocating saw that provides next-generation corded-like power and optimized user comfort to reduce fatigue in rough cutting and demolition work in pipe, metal or hardwood.
n BOSCHTOOLS.COM (877) 267-2499
Building-Products.com
OLD TIMERS BBQ
OLD TIME Lumbermen’s 15th annual BBQ brought together lumber folk, past and present, Aug. 5 to Smokey Ridge Ranch, Healdsburg, Ca. [1] Lumberman of the Year George Schmidbauer, Paul Ward. [2] Host Roger Burch, Betty Foster, Frank Zak. [3] Ben Campbell, Jim Russell, Micah Smith. [4] Bob Ward. [5] Denis Stack, Troy Turner. [6] Bob Simpson. [7] John Russel, Frank Schmidbauer. [8] Peggy Schmidbauer, Kay Johnson. [9] Three generations: Harley Sanders, Rick Rosa, Heath Rosa. The event was hosted by Redwood Empire.
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Building-Products.com
READY TO CRUISE
JETBOAT CRUISE
Umpqua Valley the hot spot for annual event Unseasonably hot weather did not deter hundreds of western lumber, panel and engineered wood professionals from trekking to Southern Oregon for the Umpqua Valley Lumber Association’s annual event. Guests were treated to three days of networking, discovering new products, touring mills, visiting old friends, and participating in activities they look forward to all year long–namely a Hellgate jetboat excurion, a four-man scramble golf tournament, and the Great Outdoors dinner buffet at Melrose Vineyard in Roseburg, Or. The event was held Aug. 2-4, based from the Seven Feathers Casino Resort in Canyonville, Or. This year’s sponsoring mills included C&D Lumber,
DR Johnson, Douglas County Forest Products, Herbert Lumber, Murphy Co., Riddle Laminators, Roseburg and Swanson Group.
SOUTHERN OREGON sawmills entertained and educated during Umpqua Valley Lumber Association’s annual gathering. [1] Bill Bourgaize, Jennifer Frazier, Brian Johnson. [2] John Redfield, Brett Slaughter. [3] Rex Burns, Dave Wright. [4] Peter Gibney, Jerod
Patterson. [5] Heidi Lael, JT Taylor, Misty Ross. [6] Leslie Southwick, David Johnson, Kris Lewis. [7] David Miles, Casey Girt, Roger Tomlin. [8] Ashlee Cribb, Walt Woliver. (More photos on next 3 pages)
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GREAT OUTDOORS BANQUET
UVLA ORGANIZERS (l-r) Kris Lewis, Leslie Southwick, JT Taylor
UMPQUA VALLEY Photos by The Merchant Magazine
UMPQUA VALLEY guests included (continued from previous page) [9] Sabrina Bloss, Larry Mussallem. [10] Mark & Erika Swinth, Josiah Dorr. [11] Joni Hanson, Ron Hanson, Greg Johnson. [12] Mark Kelly, Mike Bracken. [13] Reuben Schainen, Vicky Anderson. [14] Dave Rainey, Bob Crews. [15] AJ Labranche, JT Taylor. [16] Greg Pittman, Tim Hunt, Gary Building-Products.com
Pittman. [17] Ryan Pearson, Ashley & Jeff Wiesner, Blake Keitzman. [18] John Lee, Brendan Roseta, Chris Rice. [19] Sandy Pittman, James & Jessica Lavin. [20] Jackie & Greg Chase. (More photos on next 2 pages) September 2017
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UMPQUA VALLEY Photos by The Merchant Magazine
UMPQUA VALLEY (continued from 2 previous pages): [21] John & Anne Blodgett, Lisa & Ryan Cornutt. [22] Russ Hellwege, Mary Fartenot, Jimmy Swanson. [23] Sabrina Bloss Spencer McKinnon. [24] Dave Dahlen, Tanya & Kevin Caughron, Rich Giacone. [25] John Murphy, Jay Bishop. [26] David Marsh, Breanne Thomas. [27] Todd Vault, Greg Johnson. [28] Nick Johnson, Heidi Lael. [29] Grant Phillips, Reid
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Schooler. [30] Jeremy Hosford, Christy Hollenback, George Hewitt. [31] Frankie Gonzales, Julie Brown. [32] Brad Myers, Lee Greene. [33] Rex & Jaime Klopfer. [34] Tom Von Moos, Colby Pyzer. [35] Adam Reed, Grady Mulberry, Bob Jewell. [36] Jeff Montgomery, Jan & Rick Siltanen. [37] Rick Deen, Sally & Steve Killgore. [38] Debi Forward, Joelle McGrorty. (More photos on next page) Building-Products.com
UMPQUA VALLEY Photos by The Merchant Magazine
UVLA ANNUAL (continued from previous 3 pages): [39] Darhla & Tanya Underwood, Ryan Owens. [40] Joe Robinson, Todd Lund, Tyrone Konecny. [41] Kevin Bruce, Jeff Montgomery, Frank Peterson. [42] Jeff Squires, Rich Giacone. [43] Craig Rutledge, Justin Boyer. [44] Bill Livingston, Kelly White. [45] Matt Robinson, Danny Osborne, Andrea Ramos, Greg Mitchell, James Marston. [46] Mark Berger, Annie Montey, Building-Products.com
Dana & Tod Kintz, Cheryll & Jeff Bowers, Sydney Souza. [47] Jim Johnston, Anthony Escobedo (“Started from the bottom, now we’re here!”). [48] Dallen & Chrissy Sorensen, Lennie & Mike Johnson. [49] Kevin Lang, Dixie Tibbets, Kim & Steve Weisser. [50] Kris Lewis, Carter Stinton, Leslie Southwick. [51] Rob Endres, Brett & Karen Slaughter. [52] Chris Swanson, Tim Lewis. September 2017
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Summer of 2nd Growth West Coast Lumber & Building Material Association’s annual 2nd Growth summer conference brought members of the industry together for a game of golf as well as some insight from Randall Dean, author of Finding an Extra Hour Every Day. Dean offered time management tricks
and advise for busy professionals. The event was held at Omni Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca., July 20-21. Guests enjoyed lunch at The Yardhouse, an opening reception for networking and a group breakfast.
2ND GROWTHERS: [1] Barry Schneider, Brad Schneider, Daniel Hines, Thom Wright. [2] Tom Angel, Larry Christensen. [3] Steve Schroeder, Alex Uniack, Keith Hitchcock, Joe Morin. [4] Dan & Michelle Grady, Trevor Adams. [5] Jean Henning, Hector Barrera, Jackie Vegas, Ryan Lauterborn. [6] Thom Wright, Mo Shearer. [7] Patty & Gerry Perez. [8]
Jason Sumpter. [9] Damien & Jessica Simpson, Keith Hitchcock, Joe Morin. [10] Brad & Linda Schneider, Barry Schneider, Elizabeth & Daniel Hines. [11] Tom & Karin Angel. [12] Jen & Brian Bunt, Dave & Bethany Rogers. [13] Jason Rutledge, Jeff Wampler. (More photos on next page)
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WCLBMA (cont.): [14] Jackie Vega, Ryan Lauterborn, Larry Christensen, Zoey Stapenhorst, Bill Gaita. [15] John Allen, Ali & Alex Uniack. [16] Gerry Perez, Chris Johnson, Luis Rojas. [17] Ryan Crawford, Shannon Koons. Building-Products.com
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Western Woods opens up Despite the message’s value for operational safety, “Proceed Slowly” might not be the first sign you’d expect to see at Western Woods Inc. The busy wholesaler’s annual open house in Chico, Ca., and golf tournament July 24 were humming, and marked another successful year of growth and excitement. From the prior day’s warm-up round, to the morning’s impressive facility tours that highlighted the expansive capabilities and inventory positions, to the golf tournament followed by an awards dinner, it’s clear the focus on customer relationships works both ways. Well over 100 people came out and
braved the heat to play golf or staff sponsor booths at every hole on the course. Obviously spirits were high because of a strong market, but the
relationship that Western Woods has with its customers and vendors gives you the impression that good times are always in store with this group!
A SIGN: [1] “Proceed Slowly” at Western Woods seemed at odds with the fast growth the wholesaler has enjoyed of late. [2] Western Woods booth posted up at the event. [3] Mill workers move panels during the tour. [4]
Western Woods president Chris Richter gives a tour of various machinery throughout the mill. [5] Tour guests enjoyed coffee from Buzzin’ Beans mobile coffee company. [6] Chris Richter, Rick Richter, Kevin Richter. [7] Dennis
Furry, Tim Murphy. [8] Stacey & Dave Jones. [9] David Latimer, Chase Morrison, John Morrison. [10] Chris Richter, Jennifer Hoglund. [11] Richard Langton. [12] Rick Ray. (More photos on next two pages)
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WESTERN WOODS Photos by The Merchant
Jeff Scott. [21] Rick Ray, Richard Langton. [22] Richard Marmion, Larry Sweeden. [23] Todd Murphy, Tom Aylward, Ben Sluder. [24] Shawn Biofsky, Kevin Payne. [25] Brendan Roseta,
Jeff Waltz. [26] Vince Vierra, Jon Hagan. [27] Brian Dean, Brian Hoblit, Todd Acquillina. [28] George Hammann. [29] Tom von Moos, Greg Carter. (More photos on next page)
MAIN EVENT of Western Woods’ open house (continued from previous page) was a golf tournament at Canyon Oaks Country Club, Chico, Ca. [13] Chris Richter. [14] Angel McDonald, Brandie Smith, Heidi Scardina. [15] Mario Barajas, Pat McCumber. [16] Steve Hagen, Jake Power. [17] Mark Borghesani. [18] Tony Pozas, Eric Biofsky, Mark Biofsky. [19] Rick Richter, Chuck Anderson. [20] Steve Bertsch, Building-Products.com
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WESTERN WOODS Photos by The Merchtnt
WESTERN WOODS (continued from previous 2 pages): [30] Max Corning, Jim McVey, Jim Edwards. [31] Chris Richter, Patrick Adams, Danny Osborne, Dave Sorenson. [32] Scott Brewer, Don Lopez, Nate Goodyear, Merritt Goodyear, Nick Rogaski. [33] Chase Morrison, John Morrison. [34] Colby Pyzer, Bob Brown. [35] Bob Maurer, Rich Graham. [36] Mark Westlake, David Latimer. [37] Bud Bristow, Robert Spaulding.
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[38] Rob Rowe, Craig Smith. [39] Dan Harvey, Chuck Ruiz, Anthony Marin, Carlos Hunt. [40] Darryl Lindke, Bruce Miller, Greg Reed, Adam Burgess. [41] Dennis Furry, Todd Auen, Rudy Ramos, Tim Murphy, Brian Helem. [42] Joe Hoglund, Bryce Jonas, Kristy Parker, Brian Declusin. [43] Jeff Ward, Betsy Bendix, Rich Giacone. [44] Jeff Squires, Kevin Richter, Dave Dahlen. [45] Pat & Susan Weaver. [46] Jerry Tucker. Building-Products.com
Oregon State expands wood program Oregon State University is making strides with the next generation by adding new courses this fall and more resources to get students excited and prepared for a career in the lumber industry. Two new WSE courses, Woodturning with Science I and II, will begin this fall as part of the renewable materials undergrad degree. Students will receive an introduction to scientific woodturning, with an emphasis on grain orientation, moisture content, wood anatomy, wood chemistry, species, and extractive effects, and how each affects both form and function. Pupils will also get
RENEWABLE MATERIALS student Kelly Currans prepares green slabs to be sawn into test specimens at OSU. The institution has been working towards attracting the next generation to the lumber industry.
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ed NAWLA’s Leadership Summit in Arizona where they worked to organize an educational session for the annual NAWLA Traders Market in Chicago this November. Another new project focuses on determining the properties of valley pine, a little-known subspecies of ponderosa pine. In July, OSU students began preparing specimens for testing permeability and machinability. NEW TURNING studio at the Oak Creek building is now up and running and will be ready for fall classes.
a grounding in tools, lathes, sharpening, and set-up. Since turning is an ideal medium to teach the fundamentals of wood science (moisture content effects, wood anatomy, chemistry, physics) while also integrating form and function, the department has added an upgraded turning studio which houses six lathes, a finishing room, a sanding studio, and a bandsaw. OSU has been partnering with lumber & forest product professionals to attract the next generation to the industry. Professor of forest products marketing and department head Eric Hansen journeyed to Albany, N.Y., to take part in the Northeastern Retail Lumber Association’s “Developing the Next Generation of Leaders in the LBM Industry” course. Iain MacDonald, associate director, TallWood Design Institute at OSU, and Chris Knowles, associate professor-forest products marketing, attend-
September 2017
ASSOCIATION Update Mountain States Lumber & Building Material Dealers Association will team up with the MidAmerica Lumbermens Association for its fall conference Oct 4-6 in Kansas City, Mo. West Coast Lumber & Building Material Dealers Association is celebrating its centennial at its annual convention Nov. 7-9 at the Westin Mission Hills Golf Resort & Spa, Rancho Mirage, Ca. Western Building Material Association will conduct #2 of a three-part leadership series on “Financials for Non-Financial Managers” Oct. 19 in Olympia, Wa. North American Wholesale Lumber Association’s annual Traders Market is just around the corner, Nov. 8-10 at the Hyatt Regency, Chicago.
Building-Products.com
CLASSIFIED Marketplace
IN Memoriam
Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type. Send ad to david@building-products.com. Make checks payable to 526 Media Group, 151 Kalmus Dr., Suite D200, Costa Mesa, Ca. 92626. Deadline: 18th of previous month. Questions? Call (714) 486-2735.
HELP WANTED EXPERIENCED LUMBER SALES Thunderbolt Wood Treating has an immediate opportunity for a Territory Sales Representative. The position will cover designated territories in California, Northern and possibly mid-Western States, and be responsible for handling TSO sales while possessing an in-depth knowledge of lumber, dimensions and product knowledge for specific treatments. Duties include developing new and strengthening existing business relationships; extensive telephone and in-person contact with customers and prospects; coordinating customer visits; creating and conducting presenations; and setting and achieving sales goals. Should have 3-4 years lumber experience, 5-year clean DMV record, MS Office, self-starter, and customer focused. Contact Robin, (209) 869-4561, robin@ thunderboltwt.com.
Kevin James Koranda, 46, salesman for Idaho Pacific Lumber Co., Vancouver, Wa., passed away July 30. After serving in the Coast Guard, he moved to the Pacific Northwest in the late 1980s and became a lumber broker. He started with Tualatin Valley Builders Supply, Vancouver, and moved to Matheus Lumber, Vancouver, in 2000, before joining Idaho Pacific in 2008. David “Dave” Duncan, 79, longtime Pacific Northwest lumberman, died Aug. 14. During his 40-year industry career he worked for Miller Lumber Co., Northern Yards, Caffall Bros., and Mary’s River Lumber Co., before retiring in 2010 from Lazy S Lumber, Beavercreek, Or. William Edward “Bill” Snedecor, 76, former owner of True Value Hardware, Lake Havasu City, Az., died Aug. 10 in Wickenburg, Az. A 1964 graduate of USC, he opened his own store in 1986, successfully running it until retirement in 2005. He was the local Chamber of Commerce’s 1990 Citizen of the Year.
ADVERTISERS Index
Henry John “Hank” Voorhees, 88, lumber sales executive for over 35 years, died June 24 in Kalispell, Mt. En route to earning his master’s in forestry and wood technology, he was a tackler on Michigan State’s football team and the Golden Gloves heavyweight champ of Grand Rapids, Mi. He started in sales with Edward Hines Lumber, Lansing, Mi., then in management with several firms, including as district sales manager for JH Baxter & Co., Long Beach, Ca. William George “Bill” Birdsall, 89, founder of Northwest Moulding, Lebanon, Or., passed away Aug. 4. After 15 years at Willamette Industries, Portland, Or., and Larson’s Lumber Co., Corvallis, Or., he launched his own company. John Vogel, 62, former finance & accounting director/CFO for Belco Forest Products, Shelton, Wa., died of cancer Aug. 2 in Edgewood, Wa. After earning his CPA and working as an accountant for Weyerhaeuser for 20+ years, he started his own consultancy, Sequoia Partners, in 2002. He was controller for Comfort Design Windows & Doors, Lakewood, Wa., from 2004 to 2006, then worked for Belco until 2010.
Novik [www.novik.com]
9
Orgill [www.orgill.com.]
37
California Cascade Industries [www.californiacascade.com] 58
Pacific Woodtech [www.pacificwoodtech.com]
23
Dasso XTR [www.dassoxtr.com]
35
Pelican Bay Forest Products [www.pelicanbayfp.com]
61
Deck Expo [www.remodelingdeck.com]
59
Redwood Empire [www.redwoodemp.com]
13
Deckorators [www.deckorators.com]
3
RFP Lumber [www.rfplumber.com]
26
Fontana Wholesale Lumber [fontanawholesalelumber.com] 30
Roseburg Forest Products [www.roseburg.com]
31
Grabber Construction Products [www.grabberman.com]
38
Royal Pacific Industries
44
Huff Lumber Co. [www.hufflumber.net]
36
RoyOMartin [www.royomartin.com]
43
Humboldt Redwood [www.getredwood.com]
41
Seneca Sawmill [www.senecasawmill.com]
39
Huttig Building Products [www.huttig.com]
21
Simpson Strong-Tie [www.strongtie.com]
Jones Wholesale Lumber [www.joneswholesale.com]
46
Siskiyou Forest Products [www.siskiyouforestproducts.com] 53
Keller Lumber [www.kellerlumbercompany.com]
55
Swanson Group Sales Co. [www.swansongroupinc.com]
29
Lumber Best [www.lumberbest.com]
61
Tando Building Products [www.tando.com]
9
Matthews Marking Systems [www.matthewsmarking.com]
28
TruWood-Collins [www.truwoodsiding.com]
Cover IV
Big Creek Lumber Co. [www.big-creek.com]
Norbord [www.norbord.com]
15
Cover II
Universal Forest Products [www.ufpedge.com]
27, Cover III
5, 45
Norman Distribution Inc. [www.normandist.com]
25
Western Woods Inc. [www.westernwoodsinc.com]
47
North American Wholesale Lumber Assn. [www.nawla.org]
57
Weyerhaeuser [weyerhaeuser.com/woodproducts]
7, Cover I
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DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. International Order of Hoo-Hoo – Sept. 9-13, annual international convention, Bellevue Hilton, Bellevue, Wa.; www.hoo-hoo.org. Millwork & Moulding Producers Assn. – Sept. 10-13, fall plant tours, Sacramento, Ca.; (530) 661-9591; www.wmmpa.com. Forest Economic Advisors – Sept. 12, 7th annual forest products forum, World Forestry Center, Portland, Or.; www.getfea.com. American Wood Protection Association – Sept. 17-21, technical meeting, Westin Resort & Marina, Key West, Fl.; www.awpa.com. DMSi Software – Sept. 18-21, PartnerConnect17! customer conference, Omaha, Ne.; www.dmsi.com.
GENUINE BURMESE TEAK
Tacoma-Olympia Hoo-Hoo Club – Sept. 23, meeting, Tacoma, Wa.; (253) 531-1834.
Lumber π Decking π Siding π Flooring F.E.Q., KD, Rough π 4/4, 5/4, 6/4, 8/4, 12/4
National Retail Federation – Sept. 25-27, annual digital summit, Los Angeles, Ca.; (800) 673-4692; www.nrf.com. True Value Co. – Sept. 26-27, fall reunion, Chicago, Il.; (773) 6955000; www.truevaluecompany.com. Sustainable Forestry Initiative – Sept. 27-29, conference, Ottawa, Canada; (202) 596-3450; www.sfiprogram.com.
Custom Milling Available Pulled to width and length π Rift Sawn Upon Request Old Growth. LEGALLY Harvested Shipping directly from Myanmar & stocked in the USA 97 years of continuous service
Composite Panel Assn. – Oct. 1-3, fall meeting, Hyatt Regency, Savannah, Ga.; (703) 724-1588; www.compositepanel.org. Tacoma-Olympia Hoo-Hoo Club – Oct. 3, installation of officers meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. Mountain States Lumber & Building Material Dealers Assn. – Oct. 4-6, fall conference, Kansas City, Mo.; www.mslbmda.org. World Millwork Alliance – Oct. 7-10, annual convention, Charlotte, N.C.; (727) 372-3665; www.amdweb.com.
lumberbest.com π woodsoftheworld@gmail.com Contact Tom or Wan
(949) 515-9501
Do it Best Corp. – Oct. 13-16, fall market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com. American Architectural Manufacturers Association – Oct. 15-18, national fall conference, Loews Ventana Canyon Resort, Tucson, Az.; (847) 303-5664; www.aamanet.org. National Lumber & Building Material Dealers Assn. – Oct. 17-19, industry summit, Wigwam Resort, Phoenix, Az.; www.dealer.org. Southern California Hoo-Hoo Club – Oct. 18, concat, Anaheim Hills Golf Course, Anaheim Hills, Ca.; www.hoohoo117.org. Tacoma-Olympia Hoo-Hoo Club – Oct. 18, board meeting, Tacoma, Wa.; (253) 531-1834. Alaska Forest Association – Oct. 18-20, convention, Ketchikan, Ak.; www.akforest.org. Green Industry & Equipment Expo – Oct. 18-20, Kentucky Expo Center, Louisville, Ky.; (800) 558-8767; www.gie-expo.com. Western Building Material Assn. – Oct. 19, financials for non-financial managers seminar, Kincaid Learning Center, Olympia, Wa.; (360) 943-3054; www.wbma.org. Deck & Remodeling Expos – Oct. 25-27, Music City Center, Nashville, Tn.; (866) 860-1964; www.remodelingdeck.org. National Hardwood Lumber Assn. – Oct. 25-27, annual convention, Omni Downtown, Nashville, Tn.; (800) 933-0318; www.nhla.org. APA–The Engineered Wood Association – Oct. 28-31, annual meeting, Huntington Beach, Ca.; www.apawood.org. West Coast Lumber & Building Material Assn. – Nov. 7-9, annual convention & 100th anniversary celebration, Westin Mission Hills Golf Resort & Spa, Rancho Mirage Ca.; www.lumberassociation.org. Western Building Material Assn. – Nov. 7-9, annual convention, Tulalip Resort, Marysville, Wa.; (360) 943-3054; www.wbma.org.
888-807-2580 Bend, OR
www.pelicanbayfp.com DISTRIBUTION LOCATIONS Colton / Fontana / Modesto / Salinas / Stockton, CA PRODUCTS & SERVICES Framing Lumber / Pallet Stock / Industrial Lumber / Softwoods Hardwoods / Cedar / Fencing / Decking / Redwood Custom Cut Stock / Treated Lumber / Tile Battens 3-Hole & Slotted Vents / Custom Cutting / Remanufacturing Heat Treating / Fire & CCA Treating
North American Wholesale Lumber Association – Nov. 8-10, Traders Market, Chicago, Il.; (800) 527-8258; www.nawla.org.
“Focused on the future with respect for tradition”
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FLASHBack 50 Years Ago This Month
F ifty years ago this month, the building material industry was working to stimulate residential construction, according to the September 1967 issue of The Western Lumber & Building Materials Merchant. To be sure, they were working from a hole—a year previous U.S. housing starts had fallen to a 20-year low, plummeting below 1 million and bottoming out at an annual adjusted pace of 843,000 starts. In response, six major building material manufacturers bonded together to form Home Capital Funds to increase the supply of low down-payment mortage funds for home buyers. Backed by Anderson Corp., Armstrong Cork Co., Kaiser Industries, Masonite Corp., Reynolds Metals Co., and U.S. Plywood-Champion Papers, the new firm offered to finance a 15% seconds when paired with 75% primary loans by banks and conventional mortgage companies. For 10% down, strapped home buyers could now purchase a new home, which in 1967 went for an average of $14,250.
SEPTEMBER 1967 cover advertiser Rounds Lumber Co. was established two decades earlier by Wichita, Ks., lumber giant Ralph Rounds, to wholesale lumber produced at R o c k p o r t Redwood Co. and his other sawmills.
In other news of a half-century ago: • To better serve its territory, Foster Lumber Co. was laying down plans to relocate its home office to Boulder, Co., after being located in Kansas City, Ks., for nearly a century. The chain operated nearly 100 yards in Colorado, Kansas and Wyoming. It would make the move in 1968 and a decade later be acquired by Diamond International. • Hedding’s Building Supplies opened in “the fastgrowing Northern California hamlet of San Ramon.” Owner Bill Hedding, who previously had worked in construction and LBM retail, attracted several hundred homeowners to his grand opening, by offering the grand prize of a Shetland pony. The winner was a local grandfather of 13. The business would expand to multiple locations before closing in 1995. • Treating firm J.H. Baxter moved its headquarters from San Francisco to San Mateo, Ca., to the quarters it still occupies 50 years later. • Kaibab Lumber Co. moved its corporate offices from the site of its Flagstaff, Az., moulding plant to Phoenix’s Sky Harbor Airport. Kaibab began shuttering and selling off its plants in the early 1990s, with the Flagstaff operation purchased by Stone Industries in 1991 and closed two years later. The last of its mills—in Panguitch, Ut.—closed in 1995.
HAIL, CAESAR: Strait Door & Plywood touted its doors being used in the latest mega-hotel to be built in Las Vegas—Caesars Palace.
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• Commercial door maker Strait Door & Plywood supplied 3,800 doors, including their high pressure plastic laminate models, for Las Vegas’s newest hotel, Caesars Palace. The $26 million “Palace of Pleasure” spanned 700 luxurious rooms and suites, and included a health spa and “Garden of the Gods.” Today, the resort has nearly 4,000 rooms among its four towers, plus a gargantuan shopping mall and convention center.
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