The Merchant Feb 2015

DECKING, FENCING & PERGOLAS  OSB TRENDS  MOULDING & MILLWORK

The

MERCHANT

FEBRUARY 2015

Magazine

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February 2015

The

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MERCHANT

Magazine

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Special Features 9 MANAGEMENT TIPS

NEW YEAR’S SUPPLY CHAIN STRATEGIES

10 FEATURE STORY

WHAT IT TAKES TO BE A SUCCESSFUL DECKING SELLER

12 INDUSTRY TRENDS

COMPOSITE FENCING HOPES TO EMULATE DECKING’S GAINS

14 MARGIN BUILDERS

SELLING PERGOLAS & MORE

16 INDUSTRY TRENDS

OSB BUILDS ON DESIGN TRENDS

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30 NAWLA: THINKING AHEAD

HOW TO USE SUGGESTED PO’S

44 MANAGEMENT TIPS

PREPARING TO SELL YOUR BUSINESS

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The Merchant Magazine

ď Ž

BREAKING INDUSTRY NEWS, EVENT PHOTOS, & DIGITAL EDITION OF THE MERCHANT

BUILDING-PRODUCTS.COM

February 2015

In Every Issue 6 ACROSS THE BOARD 7 TALK BACK 18 COMPETITIVE INTELLIGENCE 20 OLSEN ON SALES 32 MOVERS & SHAKERS 36 FAMILY BUSINESS 38 NEW PRODUCTS 51 ASSOCIATION UPDATE 52 IN MEMORIAM 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below.

POSTMASTER Send address changes to The Merchant Magazine, 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626.

The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 by 526 Media Group, Inc. Periodicals Postage paid at Newport Beach, CA, and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states.

CopyrightÂŽ2015 by 526 Media Group, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

Building-Products.com

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ACROSS the Board

By Patrick Adams

The

MERCHANT

Magazine

www.building-products.com

A publication of 526 Media Group, Inc.

Big shoes to fill

T

HE FIRST TIME I heard that phrase, I was 11 years old working my first job at an auto repair shop as a “gopher.” My Dad was a working man and had told me that if I ever intended on driving when I was 16, I had better get a job and begin saving for my first car and the costs that go along with it. The owner of the shop was a family friend and told me the last gopher had been promoted to a mechanic after years of working hard.

I heard it again when I finally took over my Grandfather’s largest key account in our family business—an account that literally built my grandparents’ business. The c.e.o. told me that my Grandfather was the hardest working, most honorable man he had ever met and had never let them down.

I also heard it from my Father-in-law, a man who worked hard for his family his entire life, when I discussed ultimately marrying his daughter. He told me that my wife was raised “right,” worked hard through school and her career, had big dreams in life, and that, as her partner, I had big shoes to fill.

Now, I hear that phrase echoing in my head as I follow hard-working, respected men like David Cutler and Alan Oakes, and I think about all the people who have taken a chance on me and believed in me and my family. I have already had the great pleasure of meeting many great, hard-working people in this industry who have offered their help and their ears without hesitation during my introduction to the industry. They are the same people who ask about how David Cutler is enjoying retirement and tell me that Alan Oakes is the hardest working man in the industry. Big shoes… hard work… great men.

We all have big shoes to fill. Why do we do what we do? Why do we get up before the sun every morning and come home in the dark, tired and aching but with a smile on our face when we walk in and see our family? It’s because we all have a debt to pay to those who have helped us, had faith in us, and have given us the big shoes to fill. The shoes of our family legacy, of future generations, of our employees who become extended family, and our customers who become lifelong friends. I have looked for an industry my entire publishing career, which has spanned many companies over 25 years, that understands these things and that I can call “home.” I think I have finally found it!

The Merchant Magazine and its sister publication Building Products Digest have served this industry for over 90 years. Since trees were cut by hand and hauled by horses. Through wars and the Great Depression to some of our great country’s proudest moments, these publications have been the voice of the industry. As I see it, they are your publications and I am only the next captain to guide them through the next generation and assure they continue to serve you.

Yes, I have big shoes to fill and I am thankful for the opportunity to work hard and try to fill them. I wouldn’t have it any other way! In advance, I thank all of you for the opportunity to work with you to continue building this great industry and the legacy of these amazing publications. Also, don’t be afraid to use those “big shoes” for a kick when I deserve it! My door is always open and I would love to hear from you!

All the very best to you, your family, and your employees in this New Year,

151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626

President/Publisher Patrick Adams padams@building-products.com Vice President Shelly Smith Adams sadams@building-products.com Co-Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Editor/Production Manager David Koenig david@building-products.com Associate Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen Advertising Sales Manager Chuck Casey chuck@building-products.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

PRINT or ONLINE Chuck Casey Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (714) 486-2735 Fax 714-486-2745 hkelly@building-products.com or send a check to 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.

Patrick S. Adams Publisher/President padams@building-products.com

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

Send your thoughts and messages on this transition and article to Patrick at letters@building-products.com to be published in the March issue!

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February 2015

Building-Products.com

TALK Back We welcome your letters to the editor.

Comments should be sent to letters@ building-products.com, Fax 714-486-2745, or The Merchant, 151 Kalmus Dr., Ste. D200, Costa Mesa, Ca. 92626.

This month, readers bid farewell to retiring publisher Alan Oakes.

When I first met Alan those 14 or so years ago, with the deer in the headlight look and the accent, I wasn’t sure how he was going to do. He rose to the challenge and became a great advocate for our industy.

I am proud to call him my friend.

Godspeed, Alan.

Doug Willis California Timberline, Inc. Chino Ca. I have always enjoyed receiving your magazine, and your editorial was always my first stopping point in the magazine. I cannot believe it has been 14 years since you purchased the magazine—and I cannot believe I was 37 back then!

I have never missed an issue and find it to be one of the most informative and easy-to-read magazines in our trade. Over the years I have clipped out countless articles on new products, company and trade news, sales training (James Olsen has become a great personal friend of mine because of your magazine), accidents (so my team could learn from others’ mistakes), and, as I have become older, the “In Memoriam” section to honor and remember the great people who,

like you and me, found a home in the building products industry.

I never met you in person, but feel like I know you from the many years of reading your words. You have positively influenced me through your magazine and I will miss your bright smile at the end of your “Totally Random” comments.

All the best to you, Alan!

Edward A. San Juan E.F. San Juan, Inc. Youngstown, Fl. Alan claims to have been guided by a lifetime work ethic. However, his ethic seems to entail frequent trips to distant places and many photos of himself with LBM women. It’s an ethic we all would like.

Nevertheless, he has contributed to the creation of a trade publication that is highly respected by members of its industry and surprisingly underestimated by its competition. I have a special reason for appreciating Alan— whether because he was a wise publisher or because he was too busy admiring the females in his photos, he printed articles I wrote.

Huck DeVenzio retired, Arch Wood Protection Atlanta, Ga. Good to hear that you are retiring!

If you are able to enjoy it as much as I have, it will be the time of your life.

I will miss reading your column and hope that you can somehow keep in touch. I was amazingly on the same page with most of your thinking and

observations.You are going to feel a great feeling of freedom (once you get used to your new self).

Joe Heltsley Papa Joe’s Enterprises I have been in this industry for over 40 years, primarily in mill sales with Georgia-Pacific. I have always looked forward to receiving your magazine.

My favorite part since you took over in 2001 has been reading your “Totally Random.” My second favorite would be seeing you with your arm around some good-looking gal at a trade show.

In all seriousness, I wish you the best during this next chapter of your life. You will certainly be missed.

Sam Crowe Georgia-Pacific Atlanta, Ga. All the best to you and your new adventures. I’ve always counted your column among the few “must reads” in the multitude of publications that pile up on my desk. I have enjoyed hearing your journey and always liked the personal way you told us how you felt about what you were experiencing and thinking. Many times I would smile, nod my head, and say, “Yup, right on.” You are spot on with what a wonderful industry we are in.

Enjoy your retirement—just don’t think you’ll be able to take it too easy….

Dick Tarr Lapointe Lumber Co. Augusta, Me.

Superior Service, Products & Support 100% of the Time

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

(541) 535-3465 • www.normandist.com Building-Products.com

February 2015

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The Merchant Magazine

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7

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MANAGEMENT Tips

By Kelly Dame, Woodgrain Millwork

Supply chain strategies for a new year

A

s we kick off 2015, forecasts and trends are looking at continued recovery for the housing industry.

Moulding and millwork suppliers will be operating with uncertainty and ambiguity as to how fast a recovery will happen and how quick they will be able to react to their customers.

As industry professionals, it’s important to continually work with customers to help them understand what they can do to make their supply chain as resilient as possible in today’s economy. Our industry has seen a lot over the past few years: natural disasters, a housing recession, and overall little growth with increasing costs.

Here are some supply chain strategies that will allow your company to be as prepared as possible with what 2015 may hold.

Understanding your suppliers’ capabilities. Knowing your suppliers’ product and service capabilities encompasses everything from their product offering and production, to the operations and technology they use to

help operate efficiently.

It is important to identify the suppliers’ flexibility in servicing your business, as well as their ability to react to your needs through sourcing and fulfillment strategies. With this information, you will be able to determine how your suppliers can help you effectively manage your supply chain and what solutions they can offer you to best service your business. The more you know about your suppliers, the better security and efficiency you have in your supply chain.

Relationships and communication. Collaborative partnerships with your suppliers and customers will strengthen your supply chain and help you effectively manage your business.

Information sharing is a vital part of these partnerships. What information and how it is shared is dependent on how you want to grow your business.

Sharing information such as forecasts, sales and market trends will help with properly managing inventories to better service your customers.

EFFICIENCY AND COMMUNICATION along with collaborative partnerships between suppliers and customers will strengthen your supply chain and help you run your business successfully.

Building-Products.com

Overall, through proper communication you can increase inventory turns, eliminate costly and unnecessary inventory, and grow your profitability. The partnerships you develop will provide you and your customers a security of supply and peace of mind with managed lead times.

Internal Processes. Having the proper internal processes to effectively manage your supply chain is essential.

Internal processes relate to the standard operating procedures (SOPs) that help manage all of the activities in your businesses. Having proper SOPs in place will help you eliminate waste from your operations and help manage the flow of your products and services into your business and back out to your customers.

There is an abundance of technology available today that will help you with these processes. In many cases, the technology will also allow you to work better with your suppliers and customers, especially in cases where the technology can be fully integrated across the supply chain. Technology can help with information flow and access to that information, which in turn helps with efficiency and reaction times.

Maintaining an efficient and effective supply chain will support the profitability and sustainability of your business in the coming year. Knowing where your strengths are in supply chain management will also help you align your business with suppliers that can have the most positive impact on your business. By understanding your suppliers' capabilities, establishing meaningful relationships, and polishing your internal processes, you will create a strong, resilient supply chain in an uncertain market.

– Kelly Dame is c.e.o of Woodgrain Millwork. Reach him via www.woodgrain.com.

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FEATURE Story

By Bill Ross, Fiberon

What it takes to be a successful decking seller

B

ECAUSE OF MY background as an owner, builder, distributor and manufacturer, as well as immediate past president of the North American Deck & Rail Association, I am frequently asked, “What does it take, as a dealer, to be really successful in selling decking?” The question can be translated to: “What does it take to win?”

Being successful in business, in sports, or in relationships requires largely the same mental perspective of ownership. Success is not about trying. Oh, well, I tried. I cringe when I hear this phrase because too often these words are the self-consolation of those who never really committed to success. It’s not about trying; it’s about doing. It’s about doing whatever it takes to be victorious, provided it is ethically and morally correct. Most of us say we want to win, but most of us don’t do what it takes to win because, while we have the desire, we lack the will and commitment.

Perhaps because I grew up on Guam in the late ’60s and early ’70s where we had little in the way of TV, I do not watch sports on TV. Nonetheless, I have always liked to participate in all types of team and individual sports. Like many, I find sports to be an apt metaphor for what it takes to enjoy success in business, which is a likewise competitive environment.

Think about the effort to play a sport, any sport. The vast majority of what one does, whether novice or professional is identical. Even if you never played golf before, almost all of what you do between driving to the course and finishing the game is the same. Whether you win or lose, whether you are great or incompetent, almost all of what you do is the same quantitatively. What is the difference then between winning and losing? Winners arrive fully committed, well prepared, and determined to win. The rest, they show up uncommitted, without enough practice, and determined to “try.” Oh, well, I tried—it’s the self-consolation of those who never planned or expected to win.

And, as in sports, success in business boils down to commitment, taking responsibility, being prepared and consequently positioned, legitimately, to be successful.

Returning to question: what does it take to be successful in selling decking? Based on broad experience and conversing with successful and unsuccessful retailers, I am convinced that it boils down to the difference between the atti-

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tude and actions of those who Want to Win vs. those who Plan to Win. That difference is small; it may be a 5% difference in effort, probably much less. The matrix on the next page points out some key differences.

Here’s an example. Not long ago, I met with the owner of a three-yard building materials retailer. His stores were in prime decking territory and he had invested widely in the category. He was not making the revenue or ROI that he wanted. I spent about an hour at his anchor store just looking and listening. He carried broad inventory for the size of his stores, but no real depth. His business was perfect for fill-in, but not for large selling jobs. These he got “fresh materials” for by ordering job-packs from his supplier.

Also, there was overlap in the value/economic proposition of the products he stocked. He inventoried a couple colors of middle-of-the-line products that, from to 10 feet away, all looked the same.

There were a wide variety of displays, including fullsize displays outside. Some of these were for products he carried in stock, but many were for product he did not stock at all. Inside it was a cat’s breakfast of displays representing this, that and the other thing. To his credit, his counter people were engaged in decking. Each had their own separate counter, merchandised the products they liked to sell, and sold them well. The problem was that each liked and sold a different product. This meant that, although they bought a lot of product, because it was from a lot of suppliers, they never gained leverage with any supplier.

You could see how this happened. He didn’t so much plan this scenario intentionally; instead it evolved into this current situation. He saw himself as deeply involved in the category and believed that his company was a player in the decking category.

I told him I saw his situation differently. I shared with him that it was apparent that he was committed to the category. That wasn’t the problem. He cast a wide net, hoping to catch whatever opportunity walked in the door. It was true that they had just about anything one could think of, but that his company didn’t actually stand for anything.

They hadn’t developed a clear plan of what products to stock and fully focus their selling efforts upon. Each seller would tell a different story, and those often conflicted what the other would say. He had inventory, but not enough to Building-Products.com

get most jobs done. So while the store saw it as easy-toorder, the customer might want to leave with it now or have had bad experiences with Special Orders and No Return policies. The displays did exactly the opposite of what he wanted. Rather than provide value by the plethora of options, they resulted in confusion. The salespeople—the experts—made the task more daunting because there was no coordinated message or focus.

I suggested that he would enjoy more sales, improved margins, and better inventory ROI if he stopped trying to be something to everyone. He should instead narrow his focus and become great at something, winning customers and suppliers’ loyalty in the process. I shared that he needed to first analyze the market and develop a strategic product plan that provided him with a strong competitive position and margin improvement, while giving his customers performance and aesthetic options at different price points.

• With his volume potential, he should seek to be important to his supplier(s) and negotiate better prices, terms, rebates and support, as opposed to where he was today, which was important to no one and the right to none of these profit-building perks.

• He should narrow his assortment and stock those selected products deep enough to sell multiple jobs and purge the products that did not fit his new plan.

• The sales desk’s decking display offerings needed to be made uniform. His sales team needed to be aligned in thinking and sales efforts. He had to get them to buy into the products they were going to inventory and always

default to promoting and selling those lines first.

• The displays needed to be pared down to just what he stocked and the rest of the displays need to be removed from the showroom and yard. He might want to keep samples and literature of those products that he did not stock, but they should be out of sight and only retrieved to close a sale that would otherwise be lost.

A year later, he had put some of these suggestions in place and he shared that his revenues had improved and his inventory was turning better. More importantly, his margins had improved significantly because he had negotiated better with his suppliers.

My friend Rick often says, “It’s not rocket surgery.” It is a seemingly illogical combination of the rocket science and brain surgery metaphors, but I think it perfectly illustrates that which should be über apparent. At the end of the day, it is part what we do, part how well we do it, and part how consistently we do it, that make the difference.

To Rick’s declaration, I add what Aristotle wrote 2300 years ago: “We are what we repeatedly do. Excellence, therefore, is not an act, but a habit.” The same is true of trying and mediocrity. They are habits. If you are unhappy with your results, ask yourself, “What small changes do I need to make to go from mediocrity to excellence, from a business that Wants to Win to one that Plans to Win?” – Bill Ross is v.p. of sales for Fiberon, New London, N.C., and immediate past president of the North American Deck & Rail Association. Reach him at billr@fiberon.com.

Want to Win

Inventory

Product

Displays

People

Attitude

Building-Products.com

Plan to Win

Unless you are in a remote or a rural market, you cannot be very successful without inventory. It is a strategic balance between being broad and deep enough to be an important customer of your supplier and meeting the performance and aesthetic expectation of your customers.

Inventory is not merely carrying a product in stock; it’s about being an advocate for your customer and your products. It’s a strategic decision to stand for something. It can be a single line or several, but it’s not a casual choice. Each product has its place and function. It’s less important what they are than that they become a component of which customers you will be able to attract.

No one thing is more under-optimized than product selection. At the showing up level, it is merely having product, providing access to what you stock. It results in sales, even good sales, but falls short from those who are Prepared to Win.

Assortment is partly about providing a spectrum of performance/economic value. More importantly, it’s about being an advocate for the customer and helping them make choices. This is accomplished by making choices as a company, acting as customers’ agents to provide products you truly endorse.

This includes samples, literature and manufacturer and/or custom displays. There is a geographical preference for full-size displays in the Midwest that gets stronger as one moves west. I’m not sure those in the West can’t visualize as well as those in the East, but I am resolute that what you believe works will instill in your efforts more that will result in being successful.

These displays may or may not be different or better than average. They do have certain important elements that are consistently better, they are generally better maintained, signed and outfitted with ambiance elements, like grills, umbrellas, furniture, plants or water features

At the end of the day, people (even a single dedicated person) are the crucial element. At the basic level, it’s a product maven, someone who is knowledgeable about the category and the products and can appropriately engage the consumer or user.

In the end, it’s all about the people. Their interest in the product, process and customers’ needs largely define the business’ opportunity. Does the customer call up and get whoever, whatever the skill level, or is there a go-to person? Is the customer’s name remembered? Is there a relationship that’s deeper than the dollars exchanged? Is the customer cared about?

Those who Want to Win really want to win, but they are not “all in.” They may do all the things needed, but they fall short—sometimes just so—of what’s needed.

This is the defining line between the two groups.

Those that Plan to Win do the important things well.

And they do them over and over again.

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INDUSTRY Trends Composite Fencing

Composite fencing hopes to emulate decking’s success

T

HE ARRIVAL OF composites in the 1980s quickly transformed the decking industry, and manufacturers have continued to help keep it fresh with their continuous introductions of new colors, patterns and styles. Yet composites have not made nearly the same impact in fencing, despite offering many of the same advantages.

“As with decking and railing, composites offer a lot of benefits as fence boards,” notes Brent Gwatney, senior vice president of sales and marketing for MoistureShield.

FENCING has proven to be a more difficult market to penetrate than decking for composite manufacturers.

(Photos by MoistureShield)

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“You don’t have to paint or stain them, and they last much longer than traditional wood fencing. And, composites look great and come in flat-top or dog eared profiles and various colors, so you can build with them just like you would with wood.”

But, he adds, “composites haven’t taken off for fencing the same way they have for decks largely because of cost.

The unit cost of composites isn’t all that different from wood, but the square footage of a fence is so much greater than a deck, that total cost for a fence becomes noticeable to homeowners.”

Edmund Rose, CFC Distributors, points to composites’ biggest, more affordable competitors among privacy fencing material: wood and vinyl. “Most composite material has two to four times as much volume of product in it by comparison to vinyl materials,” Rose explains. “For example, the wall thickness on a Trex post is four times greater than a standard vinyl post. Even though it has wood in it, a composite has more plastic than a vinyl fence. So, more materials, more cost.”

Production costs can be higher, as well. Rose says, “Bottom line: the product comes to market at a higher price point than other manmade fencing materials.”

Paul O’Reilly, general manager of fencing for Fiberon, agrees that while cost is a primary barrier to wider use, the material itself—as currently formulated—appears better suited, structurally, to decking rather than fencing.

“On the surface, people think it offers all the same advantanges,” he explains. “Composite fencing looks and feels fabulous. Everyone wants it. But using a composite board that’s less than 1” thick vertically can be challenging, due to the lack of rigidity. The wood (framing structure) overpowers the picket. Wherever the wood goes, the picket follows.”

To get around this, projects are increasingly using composite fencing as in-fill, mixed in with posts made of other materials, such as aluminum. Trex increased the rigidity of its Seclusions composite fencing by giving the panels an interlocking design and adding an aluminum insert in the bottom rail.

Indeed, acceptance may be hampered by making comBuilding-Products.com

posite fencing that look too much like the standard wood boards they replace. “Some manufacturers have taken the approach of emulating a stockade, dog ear-style fence (back rails and flat face pickets),” Rose says. “Given its cost, consumers have pushed back; a premium product should have a premium appearance. We sell more composites that are specifically designed with a unique upscale appearance (picture frame, board-on-board, neighborfriendly) as an engineered system rather than as a picketand-rail solution.”

Another challenge to wider acceptance, according to Gwatney, is historical. “Homes in subdivisions almost always were built with wood fences, and homeowners tend to just leave the fence alone. When they have to replace it, they’re likely to go back to what they had,” he says.

“However, we’re starting to see innovative builders use composite fencing in creative ways, such as weaving it in with traditional wood planks.”

Fiberon’s Bill Ross adds that while his company has had success getting its composite fencing into big-box stores, the fencing market as a whole has been difficult to penetrate because it is so segmented.

“Fencing is subdivided into a number of large categories—metal and non-metal, necessity and amenity, industrial and consumer—and has a very irrational distribution network,” he says. “Manufacturers sell completed products directly to distributors, retailers, users and consumers. Manufacturers sell components and lineals for finished fabrication directly to distributors, retailers, fabrica-

tors and users. Fencing is sold via online, retail store, installed. Non-metal fencing for residential use is divided into wood and vinyl. Each of these two sub-groups, because of supply, fabrication and installation differences, have their own channels and user groups, and crossover is minimal.”

The biggest barrier, Rose notes, is consumer awareness.

“Overwhelmingly, this is the primary issue,” he says. “We field phone calls daily from consumers, contractors and box-store associates who say they recently discovered there are composite fencing options.”

“Composite decking has been around for twice as long as fencing. Most composite fences have been produced for a decade or less. Name brand recognition and general adoption of composite decking occurred quite some time ago. Additionally, composites were the next generation of decking materials, whereas vinyl fencing was the first major alternative to wood for privacy fencing. If composite decking had had a similar situation where it was competing against another pre-existing synthetic material, it might have taken longer to get a toehold.”

As well, there are far fewer producers of composite fencing than there are of composite decking. That translates not only into less supply, but also less marketing to drive increased demand.

Yet, manufacturers see composite fencing’s ascendance as inevitable. “If the picket becomes a little more rigid and 35% cheaper, it will really take off,” says O’Reilly. “I have no doubt.”

Fencing Demand Continues to Climb Demand for fencing in the U.S. is forecast to rise 7.0% per year to $9.0 billion in 2018, totaling 875 million linear ft., according to a new Freedonia Group report.

Advances will be spurred by an anticipated rebound in building construction spending from a low 2013 base.

Growth will also be boosted by rising consumer interest in such high-value fencing materials as ornamental metal and plastic and composite lumber fencing.

Many consumers are opting for fences made from these materials based on their ability to improve the appearance and value of the properties where they are installed.

Demand for fencing in the large residential market is forecast to rise at an aboveaverage pace through 2018, fueled by a strong rebound in housing completions. The residential improvement and repair segment will further support demand advances as homeowners who put off or canceled home improvement projects during the 2007-2009 recession and its aftermath undertake them going forward. Residential fences are typically installed to improve the exterior appearance of properties or to enhance privacy.

U.S. non-residential building construction applications are expected to exhibit even more rapid advances in fencing demand, reaching $2.3 billion. Strong gains in non-residential building construction expenditures will spur growth. The office and commercial construc-

Building-Products.com

tion segment will register the most rapid advances in fencing demand as owners of hotels, resorts, shopping malls, casinos and retail sites install fencing to create security barriers, delineate parking areas, and enhance privacy in an aesthetically pleasing manner.

Among the different fencing materials, plastic and composite and concrete fencing are expected to see the most rapid gains in demand in value terms through 2018. Concrete fencing demand will be boosted by increasing consumer interest in durable yet attractive privacy fencing.

U.S. demand for plastic and composite fencing will be driven by the growing use of these materials as more durable alternatives to wood fencing. Plastic and composite fencing has longer lifespans and requires less maintenance than wood fencing.

Metal fencing accounted for the largest share of fencing demand in terms of both value and linear feet in 2013 and will continue to do so through 2018. While chain link fencing will continue to be used as an inexpensive yet durable way to mark boundaries and secure properties, ornamental metal fencing will post the strongest demand advances of all metal fencing products.

Ornamental metal fencing will increasingly be specified by home and business owners as an attractive alternative to chain link fencing because it enhances the exterior appearance and value of their properties.

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MARGIN Builders

By Tim McTighe, Fifthroom.com

Enhance decking with outdoor structures

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MERICANS SPEND thousands of dollars each year either building new decks or renovating old ones with little thought about the next steps in increasing their livability and outdoor entertaining features.

While extravagances like fire pits and even full kitchens have become mainstays for many luxurious designs, there are numerous costeffective and relatively simple methods for homeowners at every price point to increase year-round deck

usage and aesthetics.

After spending the vast majority of their initial energy on the specification of deck boards and layouts, many deck builders and do-it-yourselfers oftentimes overlook basics such as the addition of pergolas and other outdoor structures for adding functionality and pleasure to both events and quiet times. Wall-mounted or freestanding, pergolas offer an ideal way to fashionably provide shade to decks and patios for anywhere from several

PERGOLAS and other outdoor structures can increase the size of the deck package. This 10-ft.-by12-ft., cedar wall-mounted-pergola functions as a patio cover.

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thousand dollars for a simple 8x8 structure to $10,000 or more for customized designs that include arches and intricately carved posts and beams.

Pergolas can also be specified to match the style of any exterior space as well as customer tastes and preferences. For example, pergolas manufactured with treated pine posts, beams and runners that are then protected by heavy duty vinyl sleeves are known for their long-term durability and maintenance-free benefits that include never needing to be painted, stained or sanded.

Numerous pergola models are also available to conform to a vast array of traditional or even rustic palates.

Western red cedar is revered for its lustrous tones and subtle cedar fragrance, which can be selected with rough cut-styled beams that have not been surfaced, making for a coarse, bulkier finished product. In addition, pergolas designed with #1 grade southern yellow pine and treated with an eco-friendly carbon based formula offer long-time resistance to water and insects, but at a more economical price when compared to other pressure-treated materials. Each can also be stained or painted to match virtually any outdoor dĂŠcor, while the western red cedar will weather to a rich silver gray patina if left unstained and/or unsealed.

In addition, pergolas can be decorated to provide wide ranging amenities to the decking experience. Plants, designer lighting, train vines, porch swings, and retractable canopies offer another layer of comfort and purpose.

Building-Products.com

CLASSIC yet durable, this 12-ft.-by-16-ft., vinyl, four-beam pergola provides ease of maintenance.

Gazebos and ramadas attached directly to decks or positioned in other landscape locations also expand outdoor use by creating open and airy entertainment spots for large gatherings, or when enclosed with screen or glass, supplying a shelter from rain or for private hot tub use throughout the winter months. Available in virtually any shape or size and with the same options as pergolas for materials, gazebos can also be added to exterior packages for another $2,500 on the low end to tens of thousands for custom structures.

Furthermore, for a truly luxurious look and feel that doesn’t cost a small fortune, builders and d-i-yers can complement the entire project with accessories ranging from garden bridges, walkways and arbors to planters, deck boxes and trellises.

Again, with all available in lengths and sizes that are specifically designed to enhance, not clutter, landscape beauty and usability.

Although many structures like pergolas can be constructed by experienced individuals within a day or two or even less, careful attention should ensure the structure is properly fastened to decking and/or houses depending on the application. This is especially true for areas that frequently suffer severe storms, high winds and snow accumulations.

As a result, while pergolas, gazeBuilding-Products.com

bos and the like can be purchased in kits from multiple vendors, only dedicated experts can supply the appropriate insights, tips and advice for the selection and construction of outdoor structures. This includes answering questions on local and state building regulations as well as providing style and safety recommendations. For instance, in addition to offering personalized customer service from the company’s in-house architects, the Design Wizard at Fithroom.com is available 24/7 to help users specify and price their own structures, complete with shapes, sizes, material and roof types.

So, never underestimate the addedvalue and benefits to the bottom line of recommending outdoor structures to the next decking project. In addition to being available at price points that are affordable under most customer budgets, they will provide a source of enjoyment that many homeowners fail to consider when building a new deck or replacing old ones. The key is partnering with reliable manufacturers that can not only help specify the project, but also support sales pitches with the proper experience and expertise.

– Tim McTighe is president of Fifthroom.com, provider of a wide variety of outdoor structures and related products. Reach him at (888) 293-2339 or via www.fifthroom.com.

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INDUSTRY Trends Oriented Strand Board

OSB offers urban style, structural sustainability

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of Millennials are presenting special opportunities for growth of OSB products.

Millenials, also known as Generation Y, desire a more urban, contemporary look and favor products that are more conscious of the environment. OSB is a viable design option to complement both trends.

Industry experts are seeing more of a demand for exposed applications.

Although OSB is primarily placed in areas that are unseen, growing trends raised up by Gen Y-ers are leading to a more contemportary look, thus bringing OSB out of its shell and into the limelight.

Because of its natural wood tone and textured appearance, OSB has been a product of choice to bring an ESIGN PREFERENCES

URBAN DESIGN meets eco-friendly with LP Building Products’ LongLength sheathing, which has a contemporary look and also helps meet specific environmental building codes.

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ENVIRONMENTAL FACTORS play a big role in the upcoming demand for OSB, as the majority of mills are required to meet or exceed specific environmental regulations in their area.

edgy, environmental look to construction projects, as it can be stained, varnished or painted as desired, making it a perfect choice for interior design.

Proving especially popular within the retail and leisure industries, OSB is being used as a dramatic focal point, such as a partitioning wall or as an interesting interior frame. There is also a growing demand to use OSB as shelving, a dramatic floor surface and for striking interior paneling.

“That's the thing about OSB, it can be used for most building tasks you can think of and its natural appearance – backed up by very favorable undisputed green credentials – make it particularly appealing for retail and leisure builds, where being natural or green is a badge of honor, and OSB is shorthand for this," said Alastair Kerr, general director of the Wood Panel Industry Federation.

The concern for energy efficient and environmentally-sound building products is a growing priority.

Companies are finding OSB is becoming the natural solution. The

February 2015

engineered wood panel boasts a number of green credentials, from its sourcing and manufacturing, to its transportation.

Attitudes are continually shifting in favor of greener solutions, as young industry professionals are searching for environmentally-kind materials, those which meet specific building codes. LP Building Products’ LongLength XL OSB sheathing is a good example as the product is designed to help meet codes in high wind and hurricane zones.

“Not only does the product meet bracing needs, but with proper installation, it helps meet uplift requirements, all as a part of a single wall system,” said Lorraine Bittles, OSB marketing manager for LP Building Products. “That means reduced material and labor costs as well as less waste.”

The growing trend of urban design and the demand for eco-sensitive products, especially by millenials, will pave the way for a continued desire for OSB material.

Building-Products.com

COMPETITIVE Intelligence

By Carla Waldemar

Blizzard of activity

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HEW, WHAT A WINTER!

No, not November in upstate New York, but 2009 in southern Minnesota. That’s the season employees of Overson Lumber Co. in St. James watched in horror as heavy, wind-pummeled snow caused the outfit’s main storage shed to collapse.

Luckily, a half-block’s worth of additional buildings remained intact, so business life could go on. But that vital storage shed had to be replaced ASAP. “Fortunately, insurance helped out considerably,” says owner Lanny Overson.

By spring 2010, it was up and running. And—what the heck?—given nature’s prod, Lanny decided, not long after, that the time was right to undertake a complete remodelingcum-expansion of the entire operation, including the site’s showroom and offices.

Turning lemons (or, icicles) into lemonade, the whole disaster (“Just a mess!”) and rebound had been captured on YouTube, and the viral account created an unplanned marketing boost. Since the company’s grand reopening in October 2012, sales have skyrocketed well beyond previous highs.

It’s not that they were all that shabby before the snowstorm for the building center Lanny’s parents purchased in 1965. His father knew the score; he’d managed yards in several small towns and traveled the road with lumber as his focus. So when he came across the dealer in St. James who was ready to retire, the Oversons seized the opportunity to run their own show.

MINNESOTA’S Overson Lumber took advantage of nature’s prodding and recently remodeled and expanded its St. James operation.

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Their son, Lanny, has been top gun (along with his brother) since 1978. But it was far from his original career plan. Graduating from the University of Minnesota’s IT department with a degree in aero-engineering, he did what kids did back in the Sixties—he joined the Peace Corps.

That stint took him to Chile, where he married and intended to settle in, until, as he tells it, “They voted Marxist and it was ‘Yankee, Go Home.’ So I did. I worked in electrical sales in the Minneapolis area, then in steel plate fabrication and construction, mostly oil refinery-type work, until my parents approached me about buying into the family business in 1978.”

Something he’d never considered, but an offer he couldn’t refuse. “I liked the appeal of living in a rural community and the opportunity to maintain and improve the rural economy.” So, with his brother, he purchased the St. James store. Then one in Sleepy Eye. Another in Lamberton. Yet another in Wabasso, and still another in Jackson, plus a coop in Westbrook: all in all, six building supply operations centered in small, southern Minnesota towns.

Then he topped off the mini-empire by building from scratch an interior design center he called Idea Haus in (uber-German) New Ulm in 2010—a project, he reveals, which has been “remarkably successful.” The location draws customers from lots of neighboring communities because everything’s in one place—cabinetry, flooring, carpeting, laminate, ceramic tile and more— inviting them to kick the tires. And it’s close to the Sleepy Eye store to fill immediate product needs. There’s a trained interior design staff on hand to help contractors who utilize the service, too. “They’re experts on the actual building, but they may need to help their customers with the details,” Lanny explains.

The design professionals at Idea Haus also make the rounds to the outlying Overson stores to share the latest trends and ideas with these employees, which today total 37 full-timers.

Just who are the Overson customers? “Mostly local contractors and do-it-yourselfers, but we handle a little bit of everything—lots of remodel and general home improvement and maintenance; also new-home construction, farm buildings, and light commercial. Some of our stores have an outside salesperson; in others, it’s the sales estimator in each store.” New business comes primarily from word of mouth: “People know us.” Overson also sponsors contractor meetings and seminars at which suppliers demonstrate current innovations in construction and train staff on new products.

Actually, Overson is big—better make that huge—on Building-Products.com

training. “We utilize computer programs, the Northwestern Lumber Association, our buying co-op. Our district manager is always organizing presentations, and the accounting manager trains all the bookkeepers. For us,” Lanny underscores the mantra, “training is very, very important.”

It pays off in almost zero turnover in key positions.

“We’ve only had two managers leave in the last 25, 30 years,” the boss has earned the right to brag. “Our employees like the culture of the company and being a key part of their communities.” And they’ve always got a voice. “We hold monthly managers’ meetings, which are two-way discussions. Each GM knows his own locale, its peculiarities, and they’re free to adapt to them. Each has different competition, and they understand and act on that.”

Lanny’s own training, starting with the swerve in the road that steered him from engineering into helming a skein of home improvement centers, has been considerably less formal: mostly OTJ and d-i-y. “Did you stumble a bit before becoming more nimble?” a reporter had to ask. “Oh, you’re right!” he laughs. “You have to listen to feedback and be open to constant change. Every situation,” he’s learned, “has its pros and cons. You have to adapt to change: changing economic climates—and weather climates,” he adds, with the winter of 2009 still front-of-mind.

And adapt he did. Following that attention-getting snowfall, he embarked on an all-embracing remodeling project for the St. James yard. “When we rebuilt the shed, we added racks and increased its height to accommodate more modern equipment, like forklifts. Then for the showroom, we revamped our outdoor signage. In the interior, we took the opportunity to add new fixtures, new displays, and many new SKUs, significantly increasing our inventory.

Building-Products.com

We added more hardware, plumbing and electrical, and updated everything. And we were delighted with the customers’ response. Everyone was impressed by the experience. Our Idea Haus helped with the design, adding new counter stations to show off our popular Cambria line; we also added quite a bit more cabinetry.” And the grand reopening opened customers’ eyes. “People told us, ‘We had no idea how broad and deep your selection is!’”

There was no escaping the recent recession, of course.

“It was definitely felt,” he reports, “but rural areas tend to remain pretty steady. Throughout it, agriculture continued to do very well, so Mr. Farmer had to have the new buildings he wanted. So now, with the recovery,” Lanny chuckles, “Mrs. Farmer can start on her new kitchen, windows, and house remodeling.”

The future looks mellow, too. Expansion? Never say never. But for now, “At Overson we want to maintain our established sites in the areas we’re best versed in. Yet,” Lanny reiterates his basic lesson, “things are always changing—like, new engineering products coming along.” So although the company has wisely set a succession plan into place, at a spry 70 years of age, Lanny has no plans of slowing down to cruising speed. “It’s just such an exciting business to be in!” he explains.

Carla Waldemar cwaldemar@comcast.net

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OLSEN On Sales

By James Olsen

Working a convention

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a fantastic way to connect with current clients and to find new ones. A convention worked incorrectly is a colossal waste of time and money.

ONVENTIONS ARE

Pre-Convention

We need to schedule specific meetings with our current clients. Don’t just say, “I’ll see you there.” If we don’t set up specific breakfast, lunch or dinner plans, someone else will, and we will get a rushed handshake and our competitors will get the important human connection.

We can have non-meal meetings with customers, but “breaking bread” is a better way to connect on a human level. It’s in our DNA. Eating with other people builds bonds of trust. Once our clients start to relax, they will open up about their business issues (and how we can help them) more than they ever will over the phone or in their office.

Have a specific goal in mind for each meeting. Bonding is important, but don’t waste it. Double down on the trust by being specific with each customer about what you want from the relationship.

Working a Booth

If our company has a booth at the convention, we need to work it. I see too many salespeople talking amongst themselves, often with their backs to convention traffic!

We need to be out front greeting everyone who comes by with a warm, inviting smile.

Get cards from everyone. If they didn’t bring a card, have a notepad at the ready to take down their critical information.

Our choice of promotional materials is important. We give our customers something of value. When Reality Sales Training works a booth we sell our sales books and CDs. Giving something away creates a bond. Getting customers to spend their money on your products creates an even stronger bond.

Drawings and contests are another way to create a connection. If you are working the booth for several days, take cards and tell everyone you will have a drawing for _____ on the last day of the convention.

A friend of mine worked a convention selling water systems. He needed people to come to his booth. He started to give away Burger King-type crowns to kids. When another child saw the crown and wanted it, his parents would have to bring them to my friend’s booth.

Have Fun, Don’t Party

John Wooden, winner of 10 national championships as coach of the UCLA Bruins, said, “Be quick, don’t hurry.”

The same holds true for us. “Have fun, don’t party.” We can have fun with our clients, but we must stay under control. “Stay one drink behind your client” is good advice. If you are the person at the convention who is sloppy drunk and loud, people will remember and talk about it—tons of negative advertising. Don’t do it. Save the blowouts for close, non-business friends.

This Is My Rifle

The Rifleman’s Creed was created in 1941 by General William H. Rupertus shortly after the attack on Pearl Harbor. We need to feel the same way about our business cards as Marines feel about their rifles. “This is my rifle/card. There are many like it, but this one is mine. My rifle/card is my best friend. It is my life. I must master it as I must master my life. My rifle/card, without me, is useless.

Without my rifle/card, I am useless….”

It goes on from there, but you get my point. Do not go to conventions without your business cards. If we don’t have our cards, we have defined ourselves as non-professionals.

One of the best ways to make new connections is to get people’s (our future customer’s) cards. It’s tough to get cards when we don’t have cards, and it is difficult to not give a card to a person who is smiling at you while handing you theirs. Keep business cards in two places—one pack in our bag and the other on our person or carry-on.

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Post-Convention

Before we go to the convention we should have a post-convention plan. Be ready to execute that plan, immediately on our return. Strike while the connection is hot. It also shows that we are professional and that we care.

If we wait too long, the opposite.

Take pictures and post them on your company website. Let everyone know that you are in the game.

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

California Lumber Tax Gets Tricky Tweaks Effective Jan. 1, changes to the California Lumber Assessment now allow some dealers to no longer collect the 1% lumber tax, supposedly easing the burden for those selling smaller quantities. But the new rules may actually make compliance more difficult.

AB 2031, approved by the state legislature last year, contained two major alterations aimed at making the assessment less onerous. First, instead of keeping $250 of the lumber tax col-

lected to cover their costs of implementing the program, retailers would now be able to keep $735.

Second, retailers that sold less than $25,000 worth of taxable lumber would no longer have to collect the tax themselves. They can instead inform their customers to pay it directly to the state Board of Equalization when their cumulative purchases exceed $50.

The new rules, although aimed at making compliance easier, have created numerous new problems, according

to Ken Dunham, head of the West Coast Lumber & Building Material Association.

Retailers opting out of the program must still chart their assessable wood products to prove their sales are under $25,000. As well, they must inform customers that they are now responsible for paying the 1% tax directly to the state. “You can only imagine the reaction of a customer when you sell them a product and then tell them they have to file with the state and pay the uncollected assessment,” Dunham notes.

Dealers opting out of collecting the tax can no longer take the $735 credit.

And, the Board of Equalization will have to continue monitoring and auditing all retailers, whether they’re collecting the tax themselves or not.

The new regulations and procedures for complying and opting out of the program are available at www.boe.ca.gov/lumber.

DEALER Briefs Ganahl Lumber, Anaheim, Ca., hopes to begin construction this summer on store #10 on 19 acres in Torrance, Ca. Franklin Building Supply has closed its 16-year-old branch in Winnemucca, Nv., reducing the chain to 11 locations.

Pagano’s Hardware Mart will relocate its 70-year-old flagship store in Alameda, Ca., to a smaller facility due to a lease dispute with its landlord.

Housemart Pahoa Ace Hardware, Pahoa, Hi., was set to reopen

Feb. 1, after closing Dec. 18 due to the threat of lava flow in the area.

Maui Windows & Doors

added a 3,000-sq. ft. showroom and retail store in Wailuku (Maui), Hi.

Wilco will open a new location in E. Vancouver, Wa., later this year, featuring a 20,000-sq. ft. True Value hardware store.

Habitat for Humanity recently opened two new ReStore outlets in the West—a 6,500-sq. ft. store in E. Missoula, Mt., and a 5,000-sq. fter. in Cheyenne, Wy. The existing, smaller Cheyenne operation will remain open under the new name ReStore Annex.

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Building-Products.com

This beauty is more than skin deep.

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Ace Buys Spokane’s Jensen

Jensen Distribution Services, Spokane, Wa., has been acquired by Ace Hardware Corp., Oak Brook, Il. Mike Jensen, fourth generation owner of the 131-year-old distributor, will retire this year after more than 25 years as c.e.o. His children, Chris Jensen and Micah Dunlap, will stay on and continue running the business.

The deal comes 11 months after Ace entered hardware wholesaling in the East with its purchase of EmeryWaterhouse, Portland, Me. Jensen distributes $150 million in hardware each year to 2,000 independent dealers in

11 western states.

Jensen joins Emery-Waterhouse as part of Ace’s wholesale division, Ace Wholesale Holdings, which has just named Hoyoung Pak as its president.

Swanson to Rebuild Springfield Panel Mill

Swanson Group Mfg. announced plans to rebuild its plywood and veneer mill in Springfield, Or., which was destroyed by fire last summer.

Since the fire, Swanson has been working with insurers, a neighboring landowner, and local and state government officials on rebuilding options.

The new mill will produce and merchandise veneer produced from logs sourced from private, state and federal forests. The plant will also manufacture an array of premium plywood products, including medium and high density overlays, hardwoods, sanded, siding and industrial grade panels in 8’, 9’, and 10’ lengths.

At full production, the mill will employ 180 to 190 workers.

“We are excited about this opportunity and, assuming everything falls into place, we will be able to start ordering equipment in the coming months” said Steve Swanson, president and c.e.o. of Swanson Group, Inc., Glendale, Or. “Springfield is well positioned in terms of log supply and work force which make our site an attractive place to recapitalize.”

Construction should begin in mid2015 and be mostly completed by mid-2016. Hiring should start late in the first or early in the second quarter of 2016.

“Of our 250 employees displaced by the fire, approximately 43 chose to take positions at our more southern locations, which hasn’t always been easy” said chief operating officer Chuck Wert. “These folks have gone through a lot, and made many personal sacrifices. We greatly appreciate this and are delighted to be able to offer them, as well as many of our other displaced employees, an opportunity to return home.”

SUPPLIER Briefs Ochoco Lumber Co. has eliminated the second shift at its Malheur Lumber mill in John Day, Or., due to lack of log supply.

The shift was added six months ago and Ochoco invested $1 million in the facility during 2014.

Clearwater Paper Corp ., Spokane, Wa., sold its specialty products business and mills to Dunn Paper, Port Huron, Mi. Burton Saw & Supply , Eugene, Or., has been acquired by private equity firm Pfingsten Partners, Chicago, Il. Burton sells equipment and supplies to sawmills and wood product manufacturers from centers in Eugene; Eureka, Ca.; Rumney, N.H.; Pelham, Al.; N. Little Rock, Ar.; and Surrey, B.C. 24

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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*.

CHEERS: Janet Webb (center), president/sales manager, Big Creek Lumber Co., Davenport, Ca., was recognized for her service as California Redwood Association chairwoman. Big Creek co-founder Lud McCrary is at left, CRA president Charlie Jourdain at right. During Webb’s term of leadership, CRA completed its Life Cycle Assessment study of redwood decking, initiated a series of TV commercials promoting redwood decking, and expanded industry participation in national trade shows.

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*.

Yosemite Lumber Purchased

Yosemite Lumber, Oakhurst, Ca., has returned to its former name, Yosemite Falls Lumber, with its sale by the Chukchansi Indian Tribe to longtime manager James Bates.

Chukchansi Inc., the tribe’s economic development arm, had purchased the 50-year-old company as a community business venture in 2010, in an effort to diversify its holdings.

Bates, 47, joined the company in 1986, when it was owned by his uncle and aunt, Everett and Carolyn Plum.

They sold it to BMC West in 1992 and it closed briefly a few years later.

Tum-A-Lum Nixes New Location 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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Tum-A-Lum Lumber, Pendleton, Or., will stay put for now, after plans to relocate to a larger, vacant facility fell through.

The lumberyard chain was so sure it was going to move to the former Pendleton Grain Growers site that it purchased many of Pendleton’s fixtures and inventory at auction. But, ultimately, Tum-A-Lum and the landlord could not come to terms on a new lease.

Tum-A-Lum is already selling the surplus merchandise and will reallocate the fixtures to other locations in the area. It will continue its working on a solution for its overcrowded Pendleton store, including relocating, adding on, or rebuilding its current facility.

N.M. Hardware Store on the Move

Hart’s Hardware, Moriarty, N.M., will relocate to a larger, 22,000-sq. ft. building by March.

The store has long outgrown its current 5,000-sq. ft. home of the last 27 years. More space will allow moving the lumber indoors and expanding its inventory in lawn & garden, plumbing, electrical, building supplies, and paint.

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THINKING Ahead

By Anthony Muck, DMSi Software, and Committee Member, NAWLA

Purchasing:

How to use suggested purchase orders

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article in a three-part series where NAWLA volunteers offer their perspectives on purchasing. Last month, Carter Forest Products’ Martin Carter outlined his thoughts on successfully buying lumber in an office wholesale context.

Here, we’ll look at one specific way to help with inventory management and efficiency for both the warehouse and front office, the Suggested Purchase Order (SPO). SPOs are built in to many enterprise resource planning (ERP) software programs, including DMSi’s Agility. Ours is based on Gordon Graham’s theories on distribution inventory management, and adapted based on feedback from customers. If you do not have this capability available to you, you can use the information below to perform similar calculations with your own usage data.

Using an SPO allows you to create suggested purchase orders based on supplier, product group, or buyer. The system then determines the need for each time based on inventory status and reorder data. SPOs provide instant information on inventory availability, then suggest a purchase order based on that item’s sales and costs it out.

To understand how the SPO arrives at its conclusion, it’s helpful to know how it works and it’s calculated. There are three key items: Economic Order Quantity Parameters (purchasing and carrying costs), Reorder Point (usage, lead time, and safety stock), and Reorder Calculations.

HIS IS THE SECOND

Economic Order Quantity

The EOQ is the amount you need to buy when the system determines your inventory level is at a point where material needs to be purchased. Prior to running reorder calculations, there are two parameters that must be set to determine the EOQ: purchasing cost and carrying cost.

Purchasing cost is determined from costs incurred in order to buy material, which includes things like payroll for the buying and receiving staff, part of the costs for the AP staff, and overhead such as the computers and phones they use. These costs would then be divided by the number of PO line items for a year. When just beginning to use SPOs, some customers default and start with 6.00.

The other parameter is the carrying cost factor. These are the costs of holding/carrying inventory in your facility (see sidebar for carrying costs calculations). This could be different by branch as some of the variables might change. Once the various costs are determined, you divide

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them by the average inventory value during the past year.

When just beginning to use SPOs, some customers default and start with 30%.

Both the purchasing cost and carrying cost must be determined in an SPO program in order to calculate buying decisions. They should be recalculated and updated once a year in every branch using current expense data.

Reorder Point

Once EOQ parameters are set, you can determine the Reorder Point (ROP), or the point in time at which a PO needs to be issued to avoid using any safety stock. Timing is very important to customer service and having the material when the customer needs it. The three key elements of ROP are: Usage (amount of material sold or used in a specified timeframe), Lead Time (how long it takes to get material from your supplier), Safety Stock (additional material for the unexpected).

Usage: Various settings in an SPO control what usage is included when calculating the ROP. History start date is the first one. If you import, override or convert history from a previous system, you will need to ensure the history start date reflects a date far enough back to allow to find that usage data. Additional settings on an SPO program will control when usage affects reordering. These include sales type and inventory level, for example. Some can be set to default to begin.

Initially the usage data is written to item activity in an SPO program. Various item activity affects usage, including sales order invoicing, branch transfers, work order usage, remanufacturing and credit memos. And as previously noted, various settings control if this item activity will affect reordering. Item activity is used for calculating ABC codes for an item. When running reorder calculations, it is based on the data warehouse (DW). DW updates must be run, which will read the item activity data.

You have the ability to view and/or update the usage data after it is written to the DW. After usage is updated, the DW is automatically updated as well. You can also export and or import usage data.

Lead Time: The next factor in determining the ROP is an item’s lead time, which is how long it takes to receive material once it’s ordered. This plays an important role in how much inventory you carry. You have the option to manually set your lead times or not have certain receiving

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A Special Series from NAWLA affect the lead time, for example for special buys. You’ll want to unset the update lead times if you have suppliers that ship sporadically.

Safety Stock: The last element in the ROP calculation is used to account for unexpected usage or delivery delays. Safety stock is determined based on Usage, Lead Time and Delivery Delay Factor. Here’s the formula: Safety Stock = Daily Usage x .7 x Delivery Delay In this formula, Daily Usage = Usage x Lead Time/30.

The .7 is the statistical constant that covers unexpected high usage. Delivery delay = (Worst Lead Time – Average Lead Time)/Average Lead Time.

Reorder Calculations

Now that we have discussed the elements in the ROP and parameters for the EOQ, it’s time to discuss the options for running reorder calculations. These should be run monthly, and criteria can be saved for running reorder calculations. You can run for a range of product groups, buyers, items or suppliers. You can run forward with a trend for seasonal inventory (trend can be for 90 or 180 days). Or you can run backward for non-seasonal stock.

The values determined from running reorder calculations are populated on the reorder info tab in an SPO program. The last calculated date is set so you know the last time the values were calculated. The ROP, EOQ, safety stock, ROP calculation method and projected monthly usage are all populated based on the calculations.

You have the ability to override and fix the EOQ, safety stock, ROP calculation method and set as fixed.

If abnormal usage is found, the checkbox will be set.

This indicates the system calculated the EOQ and ROP for the item or dimension using abnormal usage history or abnormal trend adjustment. An abnormal usage history is if one month is five times the monthly average. An abnormal trend adjustment is two times the prior year’s sales.

Right Quantities at the Right Time

An SPO can help determine the right quantities to buy at the right time. Factors used to determine this are the buy point (when to buy), the EOQ (how much to buy) and the safety stock (accounts for unexpected usage and abnormal lead times).

When running SPOs, a recommended buy is calculated using the ROP and EOQ along with the item’s current inventory position, also called net quantity. Net quantity = On Hand – Committed + On Order – Backorders. Here is the recommended buy formula: Recommended Buy = Buy Point – Net Quantity + EOQ Along with the various settings already discussed to accurately run reorder calculations, before starting to create SPOs, you will need to ensure the a number of records are defined, including primary setting, supplier UOM, lead times, minimum order, and minimum packs.

Now you have a better idea of the calculations and data elements used to determine when an SPO is needed and how much should be purchased on it.

– Anthony Muck is mgr.-customer support for DMSi, Omaha, Ne., and a member of NAWLA’s communications committee.

How to Calculate EOQ Carrying Cost Factor Warehouse Space

$_________

The annual expense of warehouse space. If all space is company owned, use the cost of leasing equivalent space in the area. Include taxes and insurance paid on buildings in this amount.

Taxes

$_________

Actual taxes paid in the last year on inventory. Taxes on buildings should be part of the warehouse space cost figure.

Insurance

$_________

Insurance premiums paid in the last year on inventory. Insurance on buildings should be part of the warehouse cost figure.

Shrinkage/Obsolete Items

$_________

The value of inventory which was adjusted off during the last year, either because of physical count differences or because the material was deemed non-saleable.

$_________

Material Handling

The total annual expense in labor and material handling equipment needed to receive and stock all incoming merchandise. This should also include the cost to move and count inventory during the year. Customer order-filling expense is not included.

Cost of Money

$_________

The interest that could have been earned in a safe investment if the money had not been used to purchase inventory.

Total Costs

$_________

Totals Costs

Total Costs

/

Avg Inventory for Past Year

=

Carrying Cost Factor

$_________

/

$_________

=

__________

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MOVERS & Shakers Tom Corrick will become c.e.o. of Boise Cascade Co., Boise, Id., effective March 6. He will replace Tom Carlile, who is retiring after 42 years with the company.

Dave Hoglund has been named general mgr. of Cedar Creek, Denver, Co. He had operated Intermountain Materials Co., Denver, for the last five years.

John Ferry has been named president of Contact Industries, Clackamas, Or., succeeding Frank Pearson, who steps into a newly created c.e.o. role and focuses on longer term strategies.

Phil Segrue, ex-BMD, has joined the sales team at El & El Wood Products, Elk Grove, Ca. Mike Britto, ex-TM Cobb, is new to windows and door sales at Golden State Lumber, San Rafael, Ca. Mike Carey, ex-Sierra Pacific Industries, has joined GeorgiaPacific, Philomath, Or., as sales mgr.-West Coast operations.

Coby Corkle has been named mgr. of Timberline Builders’ Supply, Walden, Co. Jack Burgraff, ex-Woodgrain Millwork, has joined the sales team at Continental Wood Products, Prineville, Or. Mark Quillin, ex-Milgard Mfg., has been named general mgr. of OrePac Building Products, Sacramento, Ca. Doug Reynolds is now Seattle, Wa.based West Coast regional sales rep for Dogwood Building Supply.

John Garrod, ex-Builders Direct Supply, has rejoined Alpine Windowerks, Spring Valley, Ca., as general mgr.

Jeff Miller, ex-Weyerhaeuser, is now Phoenix, Az.-based Southwest region v.p. for MiTek Builder Products.

Mike Ball has retired after 24 years as v.p.-door division for Woodgrain Millwork, Nampa, Id. Paul Keller has retired after 20 years with Hadlock Building Supply, Port Hadlock, Wa. Tim Case, ex-Ply Gem, is now San Diego, Ca., account mgr. at Pacific Architectural Millwork, Brea, Ca. Mark Lencioni, ex-Hampton Affiliates, is now saw systems and filing room mgr. for Columbia Vista Corp., Vancouver, Wa. Sarah Coryell, Cali Bamboo, San Diego, Ca., was promoted to assistant sales mgr.

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Mitchell Stadt is a new product mgr. at ABC Supply, Los Angeles, Ca. Evan M. Kaffenes, ex-Werner Co., has been appointed v.p. and c.f.o. for Versatex Building Products.

Craig Menear, president and c.e.o., Home Depot, Atlanta, Ga., is now also chairman, with the retirement of Frank Blake.

Bennett Rucka, ex-Allied Building Products, is new to sales at Malarkey Roofing Products, Phoenix, Az. Lars Hybel, ex-Electrolux, has been appointed v.p.-international of True Value Co., Chicago, Il. Gary Heroux and Jeannie Ervin are interim mgrs. of Composite Panel Association, Leesburg, Va., during the search for a new executive director. The post has been vacant since Tom Julia resigned.

Elizabeth Woodworth was appointed v.p. of communications & community engagement for the Sustainable Forestry Initiative.

Claudia Lima, Redwood Forest Products, Arcata, Ca., was honored as Black Bart Hoo-Hoo Club’s 2015 Lumberman of the Year for her community activities and involvement in the lumber industry.

Bea Minor and Dee Major are composing a new ad jingle for MungusFungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Zip-O-Log Buying Idled Mill

Zip-O-Log Mills, Eugene, Or., is negotiating to purchase the 180-acre Cone Lumber mill site in Goshen, Or., in bankrputcy court.

The Cone sawmill has been idle since 1995, although Zip-O-Log has operated a planing mill on the property since 2006.

GEPAZ Expands Arizona Mill

Good Earth Power AZ has expanded production at its Lumberjack Mill in Heber, Az. Equipment upgrades have production up by 60%, tripled daily log demands, and allowed addition of a second shift. The Sierra Madre pole operation has also been started on site.

The last of the four-phase expansion project should be completed this month, with a kiln upgrade, new planer, and conveyors, ensuring higher value, KD, smooth-surface lumber.

Building-Products.com

DO IT BEST Corp. president and c.e.o. Bob Taylor welcomed members to the co-op’s recent winter conference in Orlando, Fl., where attendees were given three days to rethink, reconnect and rejuvenate, while reinventing their businesses. Presenters included veteran retailer Doug Fleener, author Kevin Graff, and consultant Jon Schallert.

Koppers Exits Poles, Buys KMG

To better focus on its railroad maintenance products, Koppers has exited the utility pole business in the U.S. and purchased a creosote distribution company.

Cox Industries Inc., Orangeburg, S.C., purchased Koppers’ existing pole inventory, lease agreements for pole distribution yards, and related manufacturing assets. The sale does not include Koppers’ wood treating plant in Florence, S.C., its primary production facility, which it will retain to supply chemicals for treating crossties and other railroad products.

Cox v.p.-marketing Keith Harris said, “We will treat from our own facilities and on a contract basis with the Koppers facility in Florence. The purchase gave us two additional peeling locations, 13 additional distribution yards, and a new sales office in Pittsburgh.”

Cox already operated seven industrial treating plants in North Carolina, South Carolina, Alabama, Virginia and Georgia, producing utility poles, cross-arms, piling and marine construction materials. The new locations are in Iowa, Maryland, Connecticut, Kansas, Oklahoma, Ohio, New York, Minnesota, Colorado, Wisconsin, South Carolina, and Alabama.

The new sales office in Pittsburgh allows “for the successful transition of Koppers employees to Cox.” Koppers continues to operate its utility pole business in Australia.

Separately, Koppers paid $15.5 million for leased rail cars, storage tanks, and creosote distribution agreements from KMG Chemicals, Houston, Tx. The company has also postponed construction of a planned naphthalene plant in Stickney, Il., that would replace its existing facility in Follansbee, W.V.

ECi Buys Spruce Computer

ECi Software Solutions, Fort Worth, Tx., has acquired Spruce Computer Systems, Albany, N.Y.-based provider of software solutions for lumberyards, building materials suppliers, and home centers.

Rob Fitzpatrick, the current president of Spruce, will take over as president of ECi’s Lumber, Building Materials & Hardlines (LBMH) Division, combining the Spruce, Advantage and RockSolid platforms under one business unit. These solutions serve more than 3,000 customers around the world.

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Building-Products.com

FAMILY Business

family, health and fitness, relaxation and rejuvenation. It crowds out time you desperately need to plan, dream, meet, develop your employees, and deliberate on the future of your business so that you can get ahead of the firefighting curve and, finally, prosper.

The hard-work myth causes entrepreneurs to build traps for themselves.

By working extreme hours and being the go-to person for every decision, leaders make their companies dependent on their personal production, and they consequently fail to cultivate superstar employees. The trap springs one day when the entrepreneur desires a little more freedom and time off only to find that his employees can’t, won’t or aren’t capable of making business decisions in his absence.

The true test of entrepreneurial success is whether one can build a business that can survive their absence, and that challenge requires that leaders focus less on themselves and more on developing talent in the organization.

By Wayne Rivers

Stop working so hard!

T

about running a business I’ve ever received is to buy into the myth of long hours and never-ending hard work.

At a speech to a group of highway contractors, an earnest 40-somethingyear-old said, “One of the key ingredients is to work harder and longer than any of your employees. If they don’t see you working hard, they won’t work hard either, and they won’t respect you.” This is a powerful and pervasive myth. The idea that a 100hour work week is the only way to earn respect and be productive is simply ridiculous!

Are there other ways to gain peoples’ respect without working yourself HE WORST ADVICE

into an early grave? What do you think they really value: the time and effort you put in or the results you produce? Hours spent at work doing tasks that others could do as well, better or cheaper than you crowds out

– Wayne Rivers is the co-founder and president of the Family Business Institute, Raleigh, N.C., and author of such books as The Top Nine Reasons Family Businesses Fail. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493.

beautify

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Coyote Clip a Sure Fit

Sure Drive USA’s newest hidden deck clip, the Coyote Clip, offers a 90° installation process and fasteners that can be used for wood or steel joist systems.

The ribs molded into the clip’s help control lateral movement and improve the deck’s structural integrity.

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Simpson Strong-Tie’s PCZ and EPCZ post caps feature inline post and header flanges, which provide greater flexibility in choosing the post size and simplify installation when making the post-to-beam connection.

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The levels also include an integrated rafter hook so it conveniently hangs on doorframes, offering a convenient on-site storage solution.

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Superior Levels

Stanley’s durable premium box beam levels feature a removable end cap so the square edge of the level fits flush in the corner of a room, allowing for an accurate mark from one wall to be transferred onto the next, to continue a level line around a room.

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A new, one-piece PVC corner from V ERSATEX eliminates the labor-intensive patching, plugging and touch-up that a smooth, professional siding installation used to require.

The hidden-fastener Stealth HF Corner saves time and improves appearance in lap siding construction, providing zeromaintenance and weather-resistant properties.

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February 2015

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MANAGEMENT Tips

By Scott Simpson, BlueTarp Financial

Preparing to sell or transfer ownership of your business

credit reports as well as proprietary credit scoring models to evaluate customers’ credit quality and likelihood of default. Armed with this information, you can clearly represent the value of your customer base, as well as reduce risk and uncertainty for prospective buyers.

T

industry has a heritage of independent, multigenerational ownership, and that means lots of dealers are thinking about how to transition their business.

If you’re one of them—whether you’re selling to an outside party or shifting ownership to a family member—you want a successful transition for everyone.

To help ensure the best outcome, evaluate your company now with a critical eye towards what a new owner will be concerned about—things like cash flow, accounts receivable and customer strength. Your goal should be to reduce risk and uncertainty, and create stability and continuity. You can do this by implementing some best practices around your credit and collections operations.

The two scenarios below provide HE BUILDING SUPPLY

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an outline of key considerations and suggested steps to help you successfully transition ownership.

Third-party sale

Establishing value Like staging a home for sale, you want to put your business in the best possible light to maximize its financial value so you can attract qualified buyers at the highest price. Transparent financials provide clarity on your operation and make it easier for potential buyers to understand where your company’s valuation fits when looking at similar sales.

If you’ve been working with a professional credit management service, you’ll be able to offer prospective buyers a credit assessment of your customer portfolio. A credit service uses multiple business and consumer

February 2015

Improving cash flow and credit risk Understanding your cash flow will be top-of-mind for a buyer who wants to plan how much cash will be needed to support operations after the sale. If you have several accounts that are chronically delinquent, that may require a new owner to tap the bank for operating capital—a move that can add risk and cost to the equation.

Fluctuating payment trends and pastdue accounts can also be a red flag, and will indicate how much credit risk may come with the purchase.

Improving your credit risk and cash flow can seem like a daunting task.

Working with a professional credit management company can make your accounts receivable (AR) 100% current. That kind of consistency can take a lot of risk and uncertainty off the table before, during and after a sale.

Providing continuity Fostering continuity can be an elusive, but important, aspect of any sale.

After all, a buyer will want to maintain many of the relationships and processes that have led to your success. A professional credit service that manages your entire credit and collections function can help you achieve this goal by: • Maintaining consistency and professionalism in your credit and collecBuilding-Products.com

tions functions and eliminating concern about losing credit staff following a transition.

• Providing new ownership clarity and transparency on the company’s financial health and setting realistic expectations for future credit risk and cash flow.

• Assuring customers that established credit and collections functions and contacts will not change with a new owner.

Keeping it in the family

Preserving the legacy If you’re planning to transition your business to a family member, make sure the company is on solid financial footing to help preserve your legacy for generations to come.

Getting your financial house in order now can help ensure that future leadership will be able to focus on serving customers and growing the business.

You can start by identifying your top financial concerns that, in a perfect world, you’d like to reduce or eliminate for the next generation: • Lagging customer payment trends • Bad debt write-offs • Inconsistent cash flow • Time-consuming credit and collections processes • Reliance on bank lines of credit to fund operations Once you’ve created your list, you can tackle reducing the amount of risk and uncertainty that will be inherited with your company.

Reducing risk and uncertainty Even for a family member who’s been involved with the business, assuming ownership will include a lot of new responsibilities, and you’ll want to reduce that burden as much as possible. A good place to start is with improvements to your credit management and collections. The result can mean the next generation has more time, energy, and money to focus on customers and growing the business rather than being bogged down by credit decisions and chasing payments.

If you are working with a professional credit management service before the transition, you have an endto-end solution that handles everything from credit analysis and risk protection to customer service, billing, and collections. The uncertainty of cash flow will be eliminated with a guarantee that you’re paid for all sales, in full. The risk for your AR is (Please turn to page 52) Building-Products.com

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HUMBOLDT CRAB FEED Photos by The Merchant

CRAB FEAST:The Humbolt Hoo-Hoo Club held its annual crab feed Jan. 15 in Eureka, Ca. [1] Jim Lewman, George Albertson, Tim Masterson. [2] Danielle Equitz, Alan Oakes, Jeff Waltz. [3] Max Corning, Tanka Chase. [4] Zachary Marino, Michael Ross, Ben Campbell, John Russell. [5] Jeremy Dayec, Jen Clark, Ray Ayers. [6] Scott Nelson, Doug Heryford, Mike Shorten, Ken Dunn. [7] Carter Welch, Troy Bailey, John Pasqualetto. [8] Dan Kepon, Erika McNamara. [9] Bill Scott, Patrick Adams. [10] Jeff Squires, Max Corning,

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Bob Maurer, Tom von Moos. [11] Veronica Stevens, Valerie Scoggin. [12] Rhiannon Wood, Abbey Guest, Elizabeth Kordel. [13] Josh Hanson, Alan Oakes, Danny Sosa. [14] Julie Wright, Tim Brennan, Mary Bower. [15] Steve Reis, Laurie Ervin. [16] Charmaine Jennings, John Lima. [17] Mike Renner. [18] Stacey Jones, Kristen Lockhart.

(More photos on next page)

Building-Products.com

HUMBOLDT CRAB FEED Photos by The Merchant

MORE CRAB FEED (continued from previous page): [19] Chris Swanson, David Jones, Mary O' Meara Moynihan. [20] Roger Burch, Alan Oakes, Sean Burch. [21] Ken Dunham, Jean Henning. [22] Dan Kepon, Wanda & Louis Gosselin. [23] Gene Pietila, Rich Giacone. [24] Claudia Lima, Dave Dahlen. [25] Doug Willis, Jeff Donahoo, Brenden Hexberg, James Marston.

[26] Tom Knippen, Michael Wood, Mike Fauth. [27] Mark Borghesani, George Hammann, Jeff Ward. [28] John Kime, Building-Products.com

Shannon Bagwell, Mike Mayfield. [29] Patrick Adams, Mike Stone, Rich Bonfiglio. [30] Jack Butler, Clyde Jennings. [31] Larry Ford, James Crosswhite. [32] David Billingsley, Mark Swinth. [33] Joel Hamel, Rich Graham. [34] Rex Bohn. [35] Bill Jones, Claudia Lima, Jim Frodsham, Clyde Jennings, Jack Butler, Doug Willis, Bill Sullivan, John Allen. [36] Don Bratcher.

[37] Matt Campbell.

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INTERNATIONAL BUILDERS’ SHOW Photos by The Merchant

INDUSTRY OPTIMISM was high as more than 65,000 attendees filled the Las Vegas Convention Center at NAHB’s annual International Builders’ Show on Jan. 20-22. [1] Joe Biss, Gary Hartman. [2] Patrick Adams, Erol Deren. [3] Scott Jarrett, Larry Boyts, Gary Kauffman. [4] Chuck Casey, Robert Loew. [5]

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“The Genie,” Alan Oakes. [6] Joe Hanas, Matt Caissie, Bruno Lebel. [7] Dennis Coffey, Ralph Leyh, Kristin Zommer, Ken Logue. [8] Phil Lail, Brian Orchard, Bo Bryant. [9] Howard & Karen Rothstein, Len Kasperski. [10] Roderick Kabel, Adam Gangemi. [11] Rob Mitchell, Kalvin Eden. [12] Brett McCutcheon, Chad Giese.

February 2015

[13] John Marshall, Ralph Bruno, Anne-Andree Morin. [14] Mike Booth, Amy Little. [15] Scott Nowatzki, Steven Gertner, Larry Crossley, Paul Gertner. [16] Alan Oakes, Tess Lindsey.

[17] Kip McCleary, Joe Morin.

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

INTERNATIONAL BUILDERS’ SHOW

Wholesale Industrial Lumber

REEL

LUMBER SERVICE

1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806 Fax 714-630-3190 (714) 632-1988 • (800) 675-REEL 3518 Chicago Ave., Riverside, Ca. 92507

(951) 781-0564

www.reellumber.com Building-Products.com

Hummel, Brendan Hexberg. [24] Heather Crunchie. [25] Craig Young, Randy Terrill, Dan Beaty. [26] Bob Sloper. [27] Jason Boeschen, Brianne Papa, Dave Buzzie.

(More IBS photos on next page)

A

t Reel Lumber Service, we supply domestic and foreign hardwoods.

Our products and services include: • Hardwood Lumber & Pine • Hardwood Plywood & Veneers • Melamine Plywood • Hardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech) • Milling (moulding profiles, S2S, SLR1E, SLR2E, & resawn lumber) • Woodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc.)

• Woodworking Supplies (deft finishes, color putty, adhesives, etc.)

O

ur products are widely used in interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of complementary products to complete virtually any woodworking or millwork project.

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Photos by The Merchant

ON THE FLOOR at IBS (continued from previous page): [18] Bill Ingham, Todd Davis, John Assman. [19] Mimi Peavy, Jessica Pearson, Rachelle Shendow, Maureen Murray. [20] Cindy Mottern, Ken Madden. [21] Michael & Gina Baldwin. [22] Duffy McCarthy, Del Leutbecher. [23] Tim

INTERNATIONAL BUILDERS’ SHOW Photos by Merchant

JAM-PACKED IBS (continued from previous two pages): [28] Edie Kello, Douglas Mancosh, Bryce Miller, Shannon Huneycutt. [29] Bryan Crennell. [30] Brett Shuler, Tom von Moos.

[31] Randy Robins, Greg Bates. [32] Beau Buente, Dolores Simon. [33] Jim Seeger, Joe

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Holt, Marc Maniaci. [34] Vicky Ryan, Chris Wischmann, Trina Turcan. [35] Karen Rolhstein, Len Kasperski, Kim Pohl. [36] Jacek Romanski, Tom Jaroszek. [37] Paul Phillips, Craig Matter, Flo Sanchez. [38] Mike Couch, Jason Brown, Mike Wright. [39] Kevin Demarq,

February 2015

Rick Altizio, Mark Challinor. [40] Ken Goodnough, Melissa Morinelli, Joel Adamson.

[41] Mark Aromi, Doug Morse, Andrew Hampe.

[42] Mike McFarland, Scott Morovitz. [43] Bryce Miller, Greg Reed.

Building-Products.com

ASSOCIATION Update Mountain State Lumber & Building Material Dealers Association hosts its annual products expo March 19 at The Denver Mart, Denver, Co. Prizes will be awarded every hour, and the show will conclude with a chili cook-off among exhibitors.

Western Building Material Association executive director Casey Voorhees will lead an introduction to building material sales March 16 at Holiday Inn, Bozeman, Mt. California Redwood Association elected Carter Welch, Mendocino Forest Products, Windsor, Ca., to a two-year term as vice chairman.

Travis Campbell, Mad River Lumber Co., Arcata, Ca., transitioned into the chairman role, following the three-year term of Janet Webb, Big Creek Lumber Co., Davenport, Ca.

Supply; treasurer Wayne Moriarty, Atlantic Plywood; and immediate past president Don F. Schalk, C.H. Briggs.

Directors include Jamie Barnes, McKillican International; Greg Simon, Far East American; Jon Minnaert, Aetna Plywood; Bill Stokke, Holdahl Co.; Mark Carlisle, M.L. Campbell; Tim Atkinson, Wilsonart; Matthias Bulla, Grass America; David Sullivan, Meyer Decorative Services; Todd Vogelsinger, Columbia Forest Products; and Jim Jacquemard, C.A. Technologies.

NBMDA will hold its University of Innovative Distribution conference March 8-11 at JW Marriott Indianapolis, Indianapolis, In. National Frame Building Association has drafted former San Francisco Giants pitcher Dave Dravecky to

deliver the keynote address at its annual frame building expo Feb. 1820 at the Kentucky International Convention Center, Louisville, Ky. International Wood Products Association will host its World of Wood convention March 18-20 at the Cosmopolitan, Las Vegas, Nv. IHPA has set a March 20 deadline for submitting applications to its educational link scholarship fund. Four $3,000 scholarships will be awarded.

North American Wholesale Lumber Association’s spring Wood Basics Course is set for March 2-5 at Mississippi State University.

Taught be industry experts, the four-day immersion class includes both classroom training and field operations. The curriculum covers the entire spectrum of the forest products industry from seed to tree, from production to sales.

Western Wood Products Association is gearing up for its annual meeting March 1-3 at Portland Marriott Downtown Waterfront, Portland Or. California Forestry Association will honor assembly members Rich Gordon and Brian Dahle at the reception and awards dinner at its annual meeting Feb. 25-26 at The Westin Verasa, Napa, Ca. The agenda includes the directors’ forest roundtable and background on the California carbon market.

North American Building Material Distributors Association installed Rick Turk, Metro Hardwoods, as its new president.

President-elect is Bill Sauter, OHARCO; v.p. Ray Prozzillo, A&M TREATERS

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

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

909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – fwl-fwp@pacbell.net

www.fontanawholesalelumber.com

Building-Products.com

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IN Memoriam Milton Herbet, 86, founder of Herbert Lumber, Riddle, Or., died Dec. 10.

After starting the company in 1947, he worked there until his retirement in 2011. His son, Lynn Herbert, is now owner and general manager.

Rodney Gale “Rod” Swanson, 91, co-founder of Swanson Group, Glendale, Or., died Jan. 16.

He grew up working for his father and uncle’s sawmill, Swanson & May Lumber, in Noti, Or., before heading off to serve in the U.S. Army in Europe during World War II. In 1946, he returned to complete his degree at Oregon State University.

In 1951, he, his brothers Dean and Harry, and friend Ed Combs purchased a mill in Glendale and renamed it Superior Lumber Co.

In 1973, he and brothers Dean and Ray Swanson built Swanson-Superior Forest Products, Noti, Or. He would continue to help lead the company as it expanded into plywood, veneer, timberlands and a helicopter division.

Richard E. “Dick” Lambert, 90, died Jan. 15 in Orange, Ca. After serving as a staff sergeant in the U.S. Army’s 41st infantry division during World War II, he began his lumber career, including for American Forest Products, Cerritos, Ca., and Lane Stanton Vance, Industry, Ca. He served as president of the Western Hardwood Association from 1980 to 1982 Pete Ramon Almeida, 86, retired Southern California yard foreman, died Jan. 1 in a house fire in Reno, Nv. His wife escaped the blaze, which

CLASSIFIED Marketplace

HELP WANTED

Rates: $1.20 per word (25 word min.).

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.

Deadline: 18th of previous month.

Send ad to david@building-products.com or Fax 714-486-2745. Make checks payable to 526 Media Group.

Questions? Call (714) 486-2735.

HELP WANTED

DIRECTOR SALES & PURCHASING: Idaho Pacific Lumber is dynamic, growing $200M+ national building materials sales and service organization seeking executive level leader of company-wide trading functions. Core competencies required: impeccable integrity, ability to inspire, strong interpersonal skills, professional development skills, problem solving, organization, and analysis. Ideal candidate will have formal corporate sales leadership experience with desire to be a leader in entrepreneurial results oriented employee owned company. Minimum 5 – 7 years management experience. Bachelor’s degree and industry experience preferred. Boise, Idaho-based, with 20% travel expected. Contact rsullivan@idapac.com

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LUMBER PRODUCT MANAGER – LATHROP, CA. Boise Cascade, a leading building materials distributor, has an opening for a Lumber Product Manager at our Lathrop, Ca., location.

Manages commodity lumber/related items for inventory through purchase, pricing, shipment, and sells direct railcars and truckloads of commodity items to customers. Maintains direct control over purchasing, pricing, and inventory levels of assigned products to maximize warehouse sales and gross profit. Develops and introduces marketing plan/promotions on new and assigned products for sales associates and customers. Solicits direct and warehouse sales of all commodity products to customers.

Requires bachelor’s level degree in business or marketing, or equivalent experience. Strong lumber background with a minimum of five years in purchasing, sales or product management. Candidate must have strong oral and written communication skills and the ability to work independently or with teams/groups. Must be proficient in utilizing software applications necessary for performing job responsibilities.

Boise Cascade is committed to Total Quality and offers an excellent compensation package.

If you meet the above qualifications, apply online at www.bc.com. (Job ID #6298) Boise Cascade is proud to be an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, national origin, protected veteran or disability status.

February 2015

was linked to a space heater.

He served in the U.S. Army as a paratrooper from 1945 to 1947. He then entered the lumber industry, working for People’s Lumber, Oxnard; Wagon Wheel Lumber, Oxnard; Sun Lumber, San Pedro; Ward & Harrington; and Burnaby Lumber, Los Angeles, before joining Ganahl Lumber, Anaheim, in 1979.

He retired from Ganahl in 1993.

Lee Lauder, 78, lumber broker for American International Forest Products, Beaverton, Or., died Dec. 21. Lauder was a broker for 35 years, until his retirement last November.

Selling Your Business (Continued from page 45)

assumed by the credit management company and is reviewed on an ongoing basis by a credit analysis team who screens new customers and works with existing ones to help you continually identify and assess risk.

Maintaining relationships You can ensure that your new family owner will have more time to focus on customer relationships by shifting your credit and collections function from in-house to a professional credit service.

You gain stability and continuity by working with a professional credit service in several ways: • Customers are assured that established credit and collections functions will remain the same • Credit and collections will be handled by the same staff in the same professional, friendly way your customers have come to expect • Company leadership and sales will have more time and cash flow to confidently invest in the business, solve customer problems, and provide better service If you’re seriously considering the sale or transfer of ownership of your business, then now’s the time to get your financial house in order. By partnering with a professional credit service, you can rest assured that your company will be well positioned to make a profitable and successful transition when you’re ready.

– Scott Simpson is president and c.e.o. of BlueTarp Financial, which helps dealers grow and protect their business by professionally managing their credit program from beginning to end. Reach him at (207) 797-5900 or ssimpson@bluetarp.com.

Building-Products.com

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

Western Building Material Association – Feb. 11-12, blueprint reading & material take-off, DoubleTree by Hilton, Salem, Or.; (360) 943-3054; www.wbma.org.

Los Angeles Hardwood Lumberman’s Club – Feb. 12, pool tournament, Danny K’s, Orange, Ca.; (626) 445-8556; www.lahlc.net.

National Frame Building Expo – Feb. 18-20, Louisville, Ky.; (800) 726-9966; www.nfba.org.

Oregon Logging Conference – Feb. 19-21, Lane County Fairgrounds, Eugene, Or.; www.oregonloggingconference.com.

Western Wood Preservers Institute – Feb. 19-20, Embassy Suites, Portland, Or.; (360) 693-9958; www.wwpinstitute.org.

Orgill Inc. – Feb. 19-21, dealer market, Orange County Convention Center, Orlando, Fl.; (800) 347-2860; www.orgill.com.

Greenprints – March 11-12, Atlanta, Ga.; www.greenprints.org.

National Wooden Pallet & Container Association – March 11-13, leadership conference & expo, Loews Ventana Canyon, Tuscon, Az.; (703) 519-6104; www.palletcentral.com.

Los Angeles Hardwood Lumberman’s Club – March 12, golf, El Prado Golf Course, Chino, Ca.; (626) 445-8556; www.lahlc.net.

Ace Hardware Corp. – March 18-19, spring show, Las Vegas Convention Center, Las Vegas, Nv.; (888) 408-6742; www.acehardware.com.

International Wood Products Assn. – March 18-20, annual convention, Las Vegas, Nv.; (703) 820-6696; www.iwpawood.org.

Mountain States Lumber & Building Material Dealers Association – March 19, products expo, Denver Mart, Denver, Co.; (800) 365-0919; www.mslbmda.org.

Redwood Region Logging Conference – March 19-21, Redwood Acres Fairgrounds, Eureka, Ca.; (707) 443-4091; www.rrlc.net.

California Forestry Assn. – Feb. 25-26, annual meeting, Silverado Resort, Napa, Ca.; (916) 444-6592; www.foresthealth.org.

Western Wood Products Association – March 2-4, annual meeting, Embassy Suites Downtown, Portland, Or.; (503) 224-3930; www.wwpa.org.

North American Wholesale Lumber Association – March 2-5, wood basics course, Mississippi State Univeristy, Starkville, Mi.; March 3, regional meeting, Portland, Or.; (312) 321.5133; www.nawla.org.

Tacoma-Olympia Hoo-Hoo Club – March 3, joint meeting with Seattle Club, Harmon’s Brewery, Tacoma, Wa.; (253) 531-1834 tbilski614@aol.com.

Pacific Northwest Association of Rail Shippers – March 4-5, meeting, Doubletree Lloyd Center, Portland, Or.; (603) 430-0495; www.railshippers.com.

Lumbermens Merchandising Corp. – March 4-6, annual meeting, Las Vegas, Nv.; (610) 293-7049; www.lmc.net.

Tacoma Remodeling Expo – March 6-8, Greater Tacoma Convention & Trade Center, Tacoma, Wa.; www.homeshowcenter.com.

True Value Co. – March 6-8, spring market, Orlando, Fl.; (773) 6955000; www.truevaluecompany.com.

San Jose Home Show – March 7-8, San Jose McEnery Convention Center, San Jose, Ca.; (888) 433-3976; acshomeshow.com.

International Home & Housewares Show – March 7-10, Chicago, Il.; (847) 292-4200; www.housewares.org.

North American Building Material Distribution Association – March 8-11, University of Innovative Distribution, JW Marriott, Indianapolis, In.; 312-321-6845; www.nbmda.org.

Budma 2015 – March 10-13, Poznan, Poland; www.budma.com.

C&E LUMBER COMPANY 1 1/2” to 12” Diameter in Stock.

SPECIAL QUOTES Building-Products.com

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ADVERTISERS Index

IDEA File Come for Hardware, Stay for Dinner

Newcomers to

Vermillion, S.D. might drive past the local Ace Hardware with no idea that a nationally-recognized gourmet bakery and sandwich shop operates inside, which helps attract new customers of all kinds—and keeps them coming back for more.

Once a Jones’ Food Center, the building was bought

by Ace Hardware, with plans for a complete renovation. The market was home to the famous Mister Smith’s, a gourmet café known for their handcrafted deli sandwiches. “The sandwich shop is something everyone loves. People travel a long way to eat here,” said general manager Bob Starr.

“We could tell the public did not want to see it go.

Then someone threw out a great idea,” he recalled.

According to Starr, upon closing Jones’, Ace Hardware owners decided to keep the sandwich shop and instead of tearing it down, they would simply build the hardware store around it.

Starr, now responsible for running both Mister Smith’s and Ace Hardware, says the the one-of-a-kind cafe helps bring in not only a different kind of clientele, but also national attention, providing a special kind of uniqueness to the typical, everyday hardware store. It has also greatly increased their online presence, as satisfied customers feel the need to share their experiences on review websites such as Yelp.com, with the unique Ace Hardware location being a focal point. “We knew the café had a strong following and we just kept saying to ourselves, ‘We have to figure out a way to keep it,’” said Starr.

Starr highlighted a few other benefits the hardware store has experienced upon deciding to keep and takeover the deli. “The good thing about having a gourmet deli in a hardware store is that it attracts all kinds of different customers, especially college students and those who are preparing to move into dorms and apartments and are in need of hardware equipment.

This gives us a chance to upsell, which is great for overall sales. And because locals love the food, they always come back.”

Starr also explained how the desire for great-tasting, authentic food pairs well with the daily needs that a local hardware store caters to. “Hardworking people come in our store with a lot on their minds; then they enjoy a nice meal without having to go too far,” Starr explained. “We are so pleased with the outcome.

Having a deli in our hardware store has really complemented the business.”

For more on advertisers, call directly or visit their website.

AGS Stainless Inc. [www.agsstainless.com/mmag] ...................15 Boise Cascade [www.bcewp.com]..................................................4 B.W. Creative Railing Systems [bwcreativerailings.com] ..........36 C&E Lumber Co. [www.lodgepolepine.com] ...............................53 Capital Lumber [www.capital-lumber.com]..................................43 Collins [www.collinsco.com].................................................Cover I DeckWise [www.deckwise.com] ...................................................32 Dekorators [www.deckorators.com].............................................27 Fasco America [www.fascoamerica.com]....................................34 Feeney, Inc. [www.feeneyinc.com] .................................................3 Fontana Wholesale Lumber [fontanawholesalelumber.com].....51 Hoover Treated Wood Products [www.frtw.com]..............Cover III Huff Lumber Co. [www.hufflumber.net.com] ...............................22 Humboldt Redwood [www.getredwood.com] ..............................37 Jones Wholesale Lumber [www.joneswholesale.com] ..............25 Kelleher Corp. .................................................................................51 Keller Lumber [www.kelleher.com]...............................................33 Kop-Coat [www.kop-coat.com] ............................................Cover II Manke Lumber Co. [www.mankelumber.com].............................40 Matthews Marking Products [www.matthewsmarking.com] ......42 Norman Distribution Inc. [www.normandist.com].........................7 Nova USA Wood [www.novausawood.com] ................................43 NyloBoard [www.nyloboard.com].................................................23 Pennsylvania & Indiana Lumbermens Mutual [plmilm.com]......45 PPG Architectural Coatings [www.ppgac.com].............................8 Reel Lumber Service [www.reellumber.com] ..............................49 Regal Ideas [www.regalideas.com]...............................................19 Roseburg Forest Products [www.roseburg.com] .......................41 Royal Pacific Industries .................................................................26 Simpson Strong-Tie [www.strongtie.com]..............................28-29 Snavely Forest Products [www.snavelyforest.com] ...................35 Sunset Moulding [www.pakaritmd.com] ......................................33 Sure Drive USA [www.suredrive.com]..........................................53 Swanson Group Sales Co. [www.swansongroupinc.com].........39 Taiga Building Products [www.taigabuilding.com] ....................24 TAMKO Building Products [www.tamko.com] ..............................5 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....38 Universal Forest Products [www.ufpedge.com]..........................21 Versatex [www.versatex.com].......................................................17 Western Wood Preserving [westernwoodpreserving.com].Cover IV

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MERCHANT

Magazine

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