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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

SPECIAL REPORT: MASS TIMBER & ENGINEERED WOOD PRODUCTS

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Koppers Performance Chemicals is a leader in the research and development of new products and services in all areas of lumber preservation. We provide innovative wood preservative products, advanced engineering services and customized marketing services to our valued customers. We are a premier supplier of wood preservatives, globally recognized for our successful development and diversification of wood preservative technologies.

For more information visit www.kopperspc.com MicroPro pressure treated wood products are treated with Micronized Copper Azole. NatureWood pressure treated wood products are treated with Alkaline Copper Quaternary Compounds or Copper Azole. NexWood pressure treated wood products are treated with Propiconazole, Tebuconazole and Imidacloprid. CCA pressure treated wood products are treated with Chromated Copper Arsenate. MicroPro, NatureWood, Nexwood, Advance Guard, FirePro, and CCA treated wood products are produced by independently owned and operated wood treating facilities. MicroPro ®, NatureWood ®, NexWood ®, Advance Guard ®, and FirePro ® are registered trademarks of Koppers Performance Chemicals Inc. © 6/2018

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Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes, David Cutler Managing Editor David Koenig • david@building-products.com Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen, Alex Goldfayn, Claudia St. John, Dave Kahle

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Contributors The David Barber, Chris Hurren, Paige McAllister, Magazine Andrew Owens, Bill Parsons, Heather Rasmussen SECRETS FOR BETTER BUYING • OSB FORECAST • DECKING & RAILING TRENDS

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

THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

Director of Sales Chuck Casey • chuck@building-products.com

MERCHANT

NOVEMBER 2016

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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

FALL DECKING SPECIAL ISSUE • TREATED WOOD SPEC TOOLS • LVL BEAMS JANUARY JA ANUA AN UAR ARY RY 2017

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2017: THE YEAR AHEAD • WESTERN WOOD PRODUCTS • IMPORT DUTY CONFLICT

Eassy on the eyes. Easy to o install.

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(714) 486-2735 Chuck Casey chuck@building-products.com

Koppers Performance Chemicals is a leader in the research and development of new products and services in all areas of lumber preservation. We provide innovative wood preservative products, advanced engineering services and customized marketing to our valued customers. We are a premier supplier of wood preservatives, globally recognized for our successful development and diversification of wood preservative technologies.

Patrick Adams padams@building-products.com

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For more information visit www.kopperspc.com

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NatureWood pressure treated wood products are treated with Alkaline Copper Quaternary Compounds or Copper Azole. CCA pressure treated wood products are treated with Chromated Copper Arsenate. NatureWood, Advance Guard, FirePro, and CCA treated wood products are produced by independently owned and operated wood treating facilities. NatureWood®, Advance Guard®, and FirePro® are registered trademarks of Koppers Performance Chemicals Inc. © 10/2016

g Outdoor Acc ents decorative hardware . Y Yo our customers can easily Introducing nd strength to their outdoor proje ects. The new Simpson Strong--T Tie Outdoor add style an Accents line e of structural connectors featu ures an innovative screw and washer set that combines the ease of installing a screw with the look of a bolt. And, with a black powderr--coa at finish, this hardware offers st yle that’s designed to last. ®

To T o lear n mo ore about Outdoor Accents decorative hardware, visit our web bsite strongtie .c com/outdooraccents or call (800 8 ) 999-5099.

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CONTENTS

July 2018 Volume 97 n Number 7

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29 Features

29 EWP & MASS TIMBER

10 FEATURE STORY

MASS TIMBER, INCLUDING:

12 PRODUCT SPOTLIGHT

• EWP MARKET FORECAST • THE GROWTH IN MASS TIMBER • CLT & FIRE SAFETY • NEW IN THE 2018 ENERGY CODES • AND MUCH MORE.

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PTW ADVICE FOR YOUR CUSTOMERS: SHOULD TREATED WOOD BE PAINTED OR STAINED?

20 TRANSFORMING TEAMS

WHAT THE SUPREME COURT RULING ON ARBITRATION MEANS FOR YOU

26 THINKING AHEAD

RULES OF THE ROAD TO BECOME A SHIPPER/CUSTOMER OF “CHOICE”

THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

SPECIAL REPORT: MASS TIMBER & ENGINEERED WOOD PRODUCTS

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58 EVENT RECAP

DO IT BEST REFRESHES ITS SPRING MARKET IN INDIANAPOLIS

60 PHOTO RECAP

SOUTHERN CALIFORNIA HOO-HOO CLUB PACKS THE FIELD AT ANNUAL GREGSON TOURNAMENT

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12 Departments

ELIMINATE FINANCIAL GUESSWORK WHEN CHOOSING TO LEASE OR BUY YOUR NEXT FLEET VEHICLE

LATEST IN ENGINEERED WOOD AND

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8 ACROSS THE BOARD 14 COMPETITIVE INTELLIGENCE 16 OLSEN ON SALES 18 THE REVENUE GROWTH HABIT 48 MOVERS & SHAKERS 50 NEW PRODUCTS 63 ASSOCIATION UPDATE 64 IN MEMORIAM 64 CLASSIFIED MARKETPLACE 65 DATE BOOK 65 ADVERTISERS INDEX 66 FLASHBACK

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ACROSS the Board By Patrick Adams

Life passes by... remember as a kid always hearing elders say, “Oh, they’re growing up so quickly….” As a child and young adult, it never made sense to me. Time is passing by at the same pace that it always has—24 hours in a day, seven days in a week. Once I had kids I quickly began to understand. My daughter is officially becoming a 2nd grader as I write this and my son, well, he discovers a new way to get into mischief every day! I vividly remember the day they each were born, when they took their first steps, when they first smiled, and when they first ran into my arms and gave me my first hug. It seems like yesterday, but in many ways lifetimes ago. But, there are also moments that only take seconds but seem to freeze time into hours. I remember a week after my daughter was born, on New Year’s Eve, she wouldn’t wake up. As first time parents, we didn’t want to be “those parents” and over-react. “Let sleeping babies sleep,” they say. After about 10 hours, patience became panic and I remember the four-minute drive to the hospital feeling like hours. As she was rushed in (still sleeping), I remember it feeling like a lifetime until her eyes opened and she let out the loudest and most welcome cry I’ve ever heard. This past weekend we were at a friend’s house celebrating the start of summer fun in their new pool. There were several close friends that frankly, are more like family to us. Kids were all playing and their laughter competed with us “old” parents telling stories of our younger day’s past. My back was to the pool when I saw the look on my friend’s face quickly change. It was a milli-second, but in that time my brain processed about a lifetime of information and I knew what had happened behind my back. As I spun and raced the 8 feet to the edge of the pool, hours went by. I saw my son sinking face up in the pool. His eyes were open and he wasn’t flailing—just staring up at me. Literally a million thoughts ran through my mind in the two seconds it took to get to him—I’m a horrible father. My job is to protect and I’ve failed. I won’t be able to look at my wife again. How will my daughter deal with losing her brother? Why isn’t he trying to get to the surface? What if he’s actually been in there a long time and my friend just now noticed? It felt like a lifetime of days passed in those three steps to the pool. I reached in and grabbed him under the arms and yanked him out. He wasn’t crying. I immediately spun him onto his stomach head down and started smacking him on the back. I thought I saw him turn his head to look at me for a second and then he started wailing. It was the most welcome

sound I’ve heard since my daughter’s emergency room cry over seven years ago. It was then I realized he was crying because he couldn’t figure out what I was doing to him. Turns out, he was only in the water for a second and was holding his breath the whole time. Friends said the whole event, from the time he tripped and fell in until the time I was beating him on the back was maybe four seconds. Four seconds where my entire life passed before my eyes. Where I thought about all the things that I could have done better and all the things that I haven’t made time to do. All the meaningless things that I thought were important to me and a reminder of the very few things that truly do matter. If we’re lucky, the bad times in life pass by in seconds and the good times, we make the time so that we can fully experience them, appreciate them and remember them. It shouldn’t take an accident to remember what’s important and to appreciate what we have in life. Yes, business and the industry is good right now, and it’s easy to spend too many hours taking care of that business. This summer, take a few minutes (or weeks) to remember what’s really important in life and spend time making the memories that truly last a lifetime. As always, I am honored and humbled by the opportunity to serve this great industry and to call many of you “family.” Have a great summer and Independence Day remembering all that is good in our lives and saying thanks for those who sacrificed theirs for our freedom.

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

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July 2018

Building-Products.com

FEATURE Story By Chris Hurren, ARI

Eliminate financial guesswork when choosing to lease or buy a fleet vehicle control of the balance sheet, removing uncertainty is vital. One way to do this is to leverage the power of technology and advanced data analytics to develop a comprehensive acquisition strategy.

What Factors Should Drive Your Fleet Investment Strategy?

uring a typical day, a significant portion of my time is spent navigating investment decisions and the allocation of capital. These decisions ultimately impact nearly every aspect of business operations and often serve as the foundation for our corporate roadmap, which means from the very start. If you aren’t stopping to ask these questions from the very beginning, then it’s unlikely you’ll come up with a result that will meet your business’ needs. At the core of any significant contracting investment decision are several key factors that drive the process: • What is the potential return on investment? • What is the time horizon: short- or long-term? • How does this investment impact other decisions you make as a company?

• Is the business generating the capital necessary to fund the investment and your other commitments? • What is the exit strategy if things don’t go as planned? The challenge most contracting companies face is ensuring these decisions are based on financial and operational facts rather than being clouded by unanswered theoretical questions. And in many ways, fleet management is a microcosm of this intricate business dynamic. To navigate your capital spending and take better

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July 2018

When acquiring new fleet vehicles, there are several key factors that should always be considered but possibly the most important one is how the needs of the fleet align with–and support–the overall objectives of your company. Developing a sound acquisition strategy begins with determining how these assets will contribute to the sustained success and growth of the business. Once you have determined how the fleet will align with and support your business, here are a few additional factors to consider: • Depending on the timeframe, how significant is the impact of these acquisitions to your company’s available capital or cash flow? When asking this question, be sure to consider the initial acquisition expense and the full term of the lease or loan payments and how these may adjust your fiscal outlook. • What’s the direction of your company and how will these units impact both short-term goals and long-term strategic priorities? • What are all of the possible alternatives—cash purchase, lease, financing—and is this the most beneficial way to allocate your available capital? • Is it important for your organization to diversify financing sources? Do you want to tie-up bank lines to pay for fleet vehicles or diversify by leasing vehicles? The answers to these questions will ultimately help to clarify the lease versus purchase decision. Also, keep in mind that the answers to these questions may change over time and it is important to reassess your strategy on a regular basis. Additionally, the implementation of new American and international accounting standards and the potential for tax reform loom on the horizon, potentially impacting your long-term strategy as well. Building-Products.com

For many companies, there has always been a perceived fear of leasing—a myth that the company would end up paying more in terms of total cost of ownership as compared to owning a vehicle outright. Now more than ever, technology is changing that perception by transforming historical data into actionable information that highlights the true total cost of ownership for each acquisition scenario. And when the data reveals the actual cost of ownership, leasing often becomes a more attractive option.

Informed Decisions Built on Comprehensive Analysis

By effectively leveraging data, not only will you know which vehicles are

costing you the most but also why they are costing you the most. Is a particular leasing scenario inflating costs because your company isn’t cycling them out of service at the proper time? Is purchasing vehicles restricting the cash flow of the company, negatively impacting other core areas of the business? By taking the time to perform an in-depth analysis and ask the right questions, you gain clarity and ensure you’re making important business decisions on factual information supported by historical data—not just intuition or estimation. Good decision making is built on a foundation of thorough analysis and interpreting the proper data is fundamental to the process. Allow this to guide your strategy and tailor acquisition models

to the unique characteristics of your business. Armed with this valuable business insight and supported by comprehensive data analytics, you can accurately forecast the outcome of virtually any acquisition scenario. By removing uncertainty, you will be empowered to make the best possible decision for your organization. In turn, you create a fleet that is no longer a cost to the company but rather a strategic asset that delivers value and helps the business generate revenue. – Chris Hurren is executive vice president and CFO of ARI, one of the world’s largest fleet management companies, with approximately 1.5 million vehicles under management. For more information visit www.arifleet.com.

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July 2018

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PRODUCT Spotlight By David Koenig

Should treated wood be painted or stained? ustomers frequently ask, “Can pressure treated wood be painted or stained?” The Merchant asked several preserved wood experts, and the common response was yes; yet there was wide divergence of opinion on if it should be.

Juliana Rumbaugh, Lonza: “Pressure treated wood can be painted or stained. While it’s not necessary, it adds a style aspect to the finished product and is beneficial since it can be re-painted or re-stained as your style preferences change. We recommend waiting at least 60 days before applying a paint or stain to allow the wood to fully dry. “Some homeowners may prefer to let the wood age naturally, as it slowly weathers to a natural gray color over time, but this does not affect the integrity or longevity of the project. Variation in appearance is normal. “Regardless of whether or not the pressure treated wood is painted/stained or not, we recommend applying a water repellent every other year to help maintain its beautiful appearance.” Jase DeBoer, Universal Forest Products: “(Painting decks) might look good, but we don’t recommend it. Paint and opaque stains don’t wear well—because wood expands and contracts with the weather. Eventually, the paint or stain will bubble or chip, and will have to be repaired. “While this is purely an aesthetic issue and has no bearing on the performance of your treated wood, over time, you could create more of a headache—and less of a nice design— than you’d hoped. “Extreme deck coatings that are very thick (1/8” or so) and used for deck repair are another story: these products can trap water and greatly exacerbate decay. So they can create more than an aesthetic problem. “If you’re still determined to paint your deck, please make sure the wood is completely dry before applying paint. “In short, we don’t recommend painting your treated deck. Staining is okay (of course, we highly recommend our color-infused treated lumber, ProWood Dura Color!).” Jim Dudley, Fortress Wood Products, Martinsville, Va.: “Pressure treated wood can be painted or stained. I defer to

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July 2018

PAINTING treated wood has its supporters as well as its detractors.

our preservative supplier: ‘If you desire to apply paint, stain, clear water repellent, or other finish to your preservative treated wood, Koppers Performance Chemicals recommends following the manufacturer’s instructions and label of the finishing product. Before you start, Koppers Performance Chemicals also recommends you apply the finishing product to a small exposed test area before finishing the entire project to insure it provides the intended result before proceeding.’” Kari Gaviria, Madison Wood Preservers, Madison, Va.: “Yes, we definitely think people should paint/stain if aesthetically that is the look they are going for. A lot of the paints and stains repel water and provide UV protection. “However, as we advise in our MW Installer Book, ‘it is critical to ensure the wood is dry beforehand, both on the surface and internally. Wet wood will cause blisters and poor adhesion in the paint. Wood drying times can vary greatly depending on environmental conditions, but six months is the average recommended waiting period before applying paint or solid color stains and three months before applying semi-transparent stains. “‘With any paint, stain, or water repellent coating, always follow the manufacturer’s directions on the product can and take special care in sealing end grain, holes, and other peneBuilding-Products.com

trations in the wood. Too dry is always better than too wet! “‘An average weathering period of six to 12 months is recommended before painting or staining wood treated with water repellent. A water repellent coating is not as critical for the first year, although it provides some additional surface protection. “‘On the other hand, treated wood marked as KDAT (kiln dried after treatment) is already dry and should have a water repellent coating applied promptly if it does not have water repellent additive. KDAT wood can also be painted or stained immediately following project completion.’” Butch Bernhardt, Western Wood Preservers Institute: “Yes, you can paint or stain pressure treated wood. All the preservative manufacturers have basic guidelines for painting and staining (use high quality oil or latex paints/ stains, make sure wood is dry and clean before painting, follow the paint/stain manufacturer’s directions, etc.). These coatings can enhance the protection of the wood and are effective in reducing changes in the wood’s appearance from UV exposure. “There are no potential health effects from painting or staining treated wood. Most treated products are already stained, typically prior to treatment. Preservatives contain mostly copper and a mix of biocides and/or fungicides suspended in water. There is no danger from these interacting with the oils or water in paints and stains. “As far as precautions, we would just suggest that any cuts or holes be field treated with an end cut solution, whether additional stains or paints are used or not. Field treating cuts and holes are required under building codes and are noted in all treating standards as well. This ensures that wood that may not have treatment (particularly in western species, which are essentially shell treatment) are properly protected.” David Mayer, Southest Wood Treating, Montgomery, Al.: “If you decide you want to stain a deck, there are a number of factors that need to be considered before starting that project. As a general rule of thumb, a waiting period of 30 days is recommended before applying any sort of stain. It takes time for the wood to dry out from the treated processes and depending on climate conditions, it could take longer for the lumber to balance with atmospheric moisture levels. After you wait the 30Building-Products.com

day period, it is a good idea to check the lumber’s ability to accept the stain. This is a simple test that is done by dropping a few drops of water on the deck boards. If the water beads up, you will want to wait a few more days to test again. If the water absorbs into the wood, then you are ready to stain your deck. “Choose a quality stain with UV stabilizers and that has the longest warranty. Use a semi-transparent stain instead of a solid color stain. Solid stains on a deck wear through unevenly due to weather and high traffic areas. “For sealing, choose a quality sealant with UV stabilizers and that has

the longest warranty. If you are using a clear sealant, beware that the lumber will discolor to a weathered gray appearance, which may not be the look that you desire. “Staining or sealing a deck is preferred over painting for numerous reasons. Paint a deck too soon and the escaping moisture will cause the paint to blister and adhesion will not be at the desired level. Another downfall to a painted deck is simply wear and tear in high traffic areas. The paint will wear unevenly and regular maintenance will be required in order to keep your outdoor deck looking good.”

The lumberyard that took 130 years to build. When Ganahl Lumber opened the doors to its new 18.5-acre location in Torrance, CA, you could tell right away it was special. A state-of-the-art gem. Tom Barclay, General Manager Ganahl Lumber

Where did the vision come from? A combination of Ganahl’s 130-year history of operational excellence and CT Darnell’s experience building over one thousand LBM facilities. Together, they made a powerful team.

Go to www.sunbelt-rack.com/stories to check out the story behind Ganahl’s new state-of-the-art facility.

CT-Darnell.com

Sunbelt-Rack.com

July 2018

800-353-0892

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COMPETITIVE Intelligence By Carla Waldemar

No cookie cutters in this 14-strong chain

EACH LOCATION is formatted for its hometown audience, from its (at left) older, smaller yard still in its original building in Louisiana, Mo., to (right) its newer contractor-oriented location in Fulton, Mo.

hat do you get when you plant a lumber company named Lacrosse (a town on Wisconsin’s bank of the Mississippi) into a community called Louisiana? Outside of muddled geography, you get the headquarters of a very successful, 14-location enterprise in Central Missouri, that’s what. It’s one that was launched way back in the 1880s by the governor of Wisconsin and his brother-in-law, looking for a suitable spot to build a lumber mill for the Northern white pine logs floating down the river from their home state. Louisiana, Mo., made the cut because the area’s east-west railroad lines intersected with the north-south river traffic here. Over time, the planing mill’s customers demanded more, and more again, in the way of products and services. Today they’ve got 11 one-stop-shopping locations in Missouri and three more across the river in Illinois to serve their needs. President Kevin Keely, who came up through the ranks, appointed Jason Schnettgoecke as the company’s general manager just over a year ago. Jason had managed the Carrolton, Il., location since 1994, bringing a hands-on education in day-to-day operations to his new post.

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But, he stresses, in this outfit, one size does not fit all. No cookie cutters in the company’s tool box. “Each store is slightly different, depending on the community. Some serve the walk-in trade almost completely. Some are one-quarter pro; others, three-quarters. Some have only three employees; others, as many as 20. They run the gamut. “Our managers all have a lot of power in how they run their operation. We tell them, ‘Manage it like you own it.’ Unlike many other chains, they have more freedom. Of course, our headquarters here in Louisiana is here to help, and to provide purchasing power.” Product stocked also depend on the individual markets, and their unique competition, “which can be other independents or farm and home stores or big boxes.” For instance, in Glasgow (yup, also right here in Missouri) they carry a lot of seed, hanging baskets and yard supplies the others wouldn’t consider. But all of them benefit from a strong relationship with Milwaukee Tools. “We offer rental equipment in six locations, which we started last summer and are still building up. Yes, it’s a tough niche,” Jason agrees, “especially getting the word out. But the margins Building-Products.com

are really very good. And everybody uses it, from the walk-in customers to contractors to municipalities.” Because the stores are about a half an hour apart, they can quickly draw from each others’ inventory if necessary. “There’s a lot of sharing and cooperation,” Jason stresses. “Managers get together to talk about what works, what doesn’t, and what to watch out for. We’re one big family.” It’s a family with a strong service ethic, and that’s one major factor in attracting and retaining the loyalty of its contractor customers. “They appreciate that we carry quality materials— top-grade lumber—and that we make a priority of timely service: You call in an order, and we’re on it! We deliver as quickly as possible—something that puts us ahead of the competition.” Lacrosse’s pros also benefit from events like Tool Days, sponsored by companies such as Milwaukee and Bostitch, where these customers can bring in tools, get them repaired, benefit from deals on new ones, and— of course—have a bite to eat. What are these pros up to? “Depends on the markets where they’re located. The bigger towns, they’re building new homes, also spec homes, in the $250,000 to $300,000 range. In smaller towns, it’s more remodeling. “Pros appreciate that we go the extra mile, provide services others may not, like timely deliveries and top-quality lumber. We’re less strict in our return policies, too. And our outside salesman in Columbia deals oneon-one with our contractors, visiting their jobsites. “Our staff likes working here, too, because we’ve been around a long time. We treat everybody well: we’re loyal to them, and they to us. We’re a little more easygoing. And our managers like having the freedom to make important decisions.” The company is starting to direct more attention to the retail crowd, too. “We’ve noticed that these customers are more and more female. So to appeal to them, we’ve added new products—cleaning supplies, lawn and garden, and Sherwin Williams paints, which we display right at the entrance. Also, we’ve upgraded to better displays, better lighting, and cleaner aisles. We’ll hold our first Ladies Night in July. And our managers have instituted staff training to stress being a little more refined, if you will, in our approach and conversation with these female customers.” Building-Products.com

One-stop shopping is the aim. “We try to have complete lines to do the job, including farm & ranch, HVAC, lawn & garden, power tools. And we have a draftsman in our main office who can work on plans.” To get the message out, Lacrosse knows that e-commerce is the wave of the present, to position itself for the future. “We do online advertising, and each of the stores has its own Facebook account, where they post at least once a week. (‘Advertising doesn’t come any cheaper than Facebook!’ Jason laughs.) We still do fliers and mailers, but we’re looking to change how we do things: enter the digital age.” Lacrosse’s dedication to charitable causes has become almost legendary. “Schools,” says Jason, “are on the top of our list. Churches, too. Every town has a little different focus. We donate time, money, materials, lend people equipment.” And it all comes around. “People really appreciate it and remember it,” he notes. All that helped the outfit pull through the recession, which “hurt.

Sure did! Especially in our pro-based yards. In the retail and agricultural side, however, people still needed hardware.” To cope? “We did everything you usually do—cut costs to weather the storm. Now, we’re back— absolutely on a roll.” And that’s the way Jason loves it. “I like getting to see a lot of different people, meet all kinds of folks. It’s a broader scope than when I was in a smaller, farming community. I can see how others do things, pass on tips. As a company, we’re looking to grow: add more locations, and grow rentals beyond our six present stores.” That’ll keep Jason in the office for the foreseeable future, and the future looks rosy. States Jason in no uncertain terms, “I’m 45, and I plan on being a lifer!”

Carla Waldemar cwaldemar@comcast.net

www.superiorwoodtreating.com

July 2018

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OLSEN on Sales By James Olsen

Pro closer or faux closer?

just need to put the closing hook on it. Seller: “Hi, Justin. This is a great car because: (1) $450 is a smokin’ price. (2) You love this stock. (3) The market is moving. So how many can you use?”

The You Oughta Think About

any sellers are uncomfortable asking for the order. They know they are supposed to so they “ask” for it with an “I-don’t-mean-to-bother-you-and-please-don’t-getmad-at-me” tone and in fact don’t ask for the business at all because they “faux close;” it’s close to a close, but it’s a side-step or a beat-around-the-bush call with too many words. Whatever it is isn’t a close and produces poor treatment and results. Here are five examples of faux closes:

The Run-Through Seller: “So, John, we’ve got a great deal on those studs, you should really think about picking those up (no pause) and we have some 2x10 Select Struc that gets into you at $350 which is also a good deal and then…” Buyer: “Hey, Pete, thanks SO much for the information. I’ll look it over and get back to you.” Seller: “OK, great.” Solution: Make “closing” a separate “thing.” Do not run it together with the rest of the sentence. Stop and ask directly for the item, one item at a time. Seller: “So, John, we’ve got a great deal on those studs. You should really think about picking those up. Can I sign you up for two?” Then on to the 2x10 Select Stuc and the same, stopping at each item in the list.

The Whadya Think? Seller: “Hi Susan, I’ve got a great price on a car of 2x10 14’s I can get into at $750/MBF Wadya-Think?” Solution: NEVER ask “Whadya think?” again!—please. It projects a lack of expertise and weakness. Seller: “Hi, Susan. I’ve got a great price on a car of 2x10 14’s I can get into at $750/MBF, which is a fantastic deal. What’s your order number on that?”

The Positive Run Down (with No Ask) Seller: “Hi, Justin. This is a great car because: (1) $450 is a smokin’ price. (2) You love this stock. (3) The market is moving.” Then silence... which buyer fills with: Buyer: “Sound good; I’ll let you know.” Solution: The “List the Benefits” close is powerful. We

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Seller: “Terry, great news. I was able to find that 1x12 Premium we’ve been looking for. It gets into you at $850/ MBF. You oughta think about bringing that in; it’s a great deal.” Buyer: “OK. Thanks, Bob. I’ll think about it.” (Since this is exactly what the seller told them to do!) Solution: There is nothing wrong with a softer approach as long as we follow it up with a true ask (close). Seller: “Terry, great news. I was able to find that 1x12 Premium we’ve been looking for. It gets into you at $850/ MBF. We oughta think about bringing that in; it’s a great deal. Give me your order number so we can lock this down before it disappears.”

The Give Details (without Adjectives) & Then Be Silent Seller: “Sheri, I’ve got a car of studs I can get into you at $450/MBF.” Buyer: “OK. I’ll let you know.” Solution: All these faux closes are poor, but this is sadly the most common example of faux closing and the worst, laziest, most unprofessional call sellers make. These sellers get treated poorly because they give poor, unimaginative, boring effort and the customer knows it! In their defense, some sellers aren’t lazy, they don’t know any better; but that fact won’t keep customers from treating them poorly. Faux closes are bad for four reasons: 1. They send the message that we don’t REALLY want the business, but that we KINDA want it—that’s why we KINDA asked for it, right? 2. They send the message that we are tentative or unsure. If WE are unsure, the customer will definitely feel unsure. 3. They’re easy to say no to. 4. Most importantly, they are by definition disingenuous and false. They send the message that we would kinda-maybe-possibly want the business when the truth is that we do want the business. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

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THE REVENUE Growth Habit By Alex Goldfayn

Selling gratefully tudy after study shows that grateful people outperform ungrateful, or cynical ones. They’re more successful. They’re happier. They persevere more. And who do you think outperforms—and, for our purposes, outsells? Happy salespeople or unhappy ones? Perseverant salespeople or salespeople who give at the first rejection? In his excellent book The Happiness Advantage, Shawn Achor writes, “Few things in life are as integral to our well-being [as gratitude]. Countless studies have shown that consistently grateful people are more energetic, emotionally intelligent, forgiving, and less likely to be depressed, anxious or lonely. And it’s not that people are only grateful because they are happier either; gratitude has proven to be a significant cause of positive outcomes.” That is, choosing to be grateful directly leads to more success. Choosing to be the opposite of grateful, which in sales is cynicism, leads directly to less success. First, how powerful is that?! Second, how do you come into work? Gratefully or cynically? The beautiful thing is, we get to choose. Right now, you can choose to be grateful or cynical. You can choose every morning when you get out of bed. And you can choose before phone call and customer meeting. Which will you choose? Since we get to decide, and since one leads directly to success and the other erodes it, why not choose gratitude? Choose to be grateful and choose to sell gratefully! Because there’s a lot to be grateful for, my friends: You have customers who you help in tremendous ways, and they know it! Ask them and they’ll tell you exactly what they’re thrilled about. How lucky are you?! You have customers who have been with your firm for years, sometimes decades. They know they can buy it for less money elsewhere, and yet they stay with you. How lucky are you?! You have customers who would be more than happy to buy more of your products and services if you systematically told them about those products and services. That’s like free money! How lucky are you?! Your customers would also be happy to give you referrals if you asked for them. And why not? Their referral would help a friend a lot because they’d be connected to you. How lucky are you?! And what about prospects, those people who are not working with you currently but would benefit greatly from doing so? Don’t they need your great value too? They need

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to be rescued from their current providers. There’s so much business out there! How lucky are you?! Listen to me on this: you save your customers time. You save them money. You bring them peace of mind. You help them sleep at night. You make them look good to their customers and their colleagues. You are available, and you are on time. You do what you say you will do. I know because I talk to your customers all the time. I’ve talked to thousands of them. I interview my clients’ customers as a part of every project, and they tell me these things. The competition is not these things. Don’t assume the competition is wonderful. It is not. Your customers are frustrated with the competition. How lucky are your customers to have you?! Ask them, and they’ll tell you. Believe them. They know how lucky they are. Now I want you to know. And then behave accordingly. Which means boldly. Confidently. Happily. With perseverance. With gratitude. And don’t just believe them with your head, logically. Believe with your heart. Internalize it. Really buy your great value. Your customers do every day. And they are grateful for it. Now it’s your turn. Choose gratitude. It pays better. Alex Goldfayn Revenue Growth Consultancy alex@evangelistmktg.com (847) 459-6322 Building-Products.com

TRANSFORMING Teams By Paige McAllister

Supreme Court decision on arbitration What it means for you

n Monday, May 21, 2018, the Supreme Court issued a split 5-4 decision (along party lines) regarding the enforcement of arbitration agreement clauses prohibiting employees from seeking class or collective action for certain employment claims, in this case, FLSA claims. The decision consolidated three cases (Epic Systems Corp. v. Lewis, NLRB v. Murphy Oil Co., and Ernst & Young LLP v. Morris) with conflicting decisions in different circuits of the U.S. Circuit Court of Appeals. In these cases, arbitration agreements required employees to submit their wage and hour claims to binding arbitration and to do so on an individual basis. In previous decisions, the Sixth, Seventh and Ninth courts agreed with employees who claimed arbitration provisions violated the National Labor Relations Act (NLRA) because they prohibited class actions and denied workers the right to engage in “protected concerted activities” for their mutual aid and protection. Conversely, the Second, Fifth and Eighth courts agreed with employers who argued the Federal Arbitration Act (FAA) allows enforcement of arbitration agreements as written except on very narrow grounds such as fraud. In writing the majority’s decision, Justice Neil Gorsuch explained that Congress has instructed federal courts to

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enforce arbitration agreements “according to their terms— including terms providing for individualized proceedings” and that these provisions remain enforceable under the FAA. Justice Gorsuch writes that, while the NLRA “secures to employees rights to organize unions and bargain collectively,” it “says nothing about how judges and arbitrators must try legal disputes that leave the workplace and enter the courtroom or arbitral forum.” He stated the Court has never read an employee’s right to class actions into the NLRA. He also explains that section 7 of the NLRA was enacted in 1935 before the Federal Rules of Civil Procedure created class actions in 1966 and before the FLSA had codified its collective action provisions. The Court concluded that this timing along with the fact that section 7 does not mention the forms of group litigation that did exist in 1935 nor does it approve or disapprove of arbitration means that section 7 of the NLRA was not intended to include class or collective actions as protected concerted activity. In the dissent, Justice Ginsburg writes that she believes “the inevitable result of today’s decision will be the underenforcement of federal and state statutes designed to advance the well-being of vulnerable workers.” She continues that the Court’s decision elevated the “FAA over workers’ rights” and “ignores the destructive consequences of diminishing the right of employees to band together in confronting an employer.” Justice Ginsburg expressed concerns that employees will be “disinclined to pursue small-value claims” if having to proceed one-by-one and, “When workers charge their employers with unlawful conduct—in this case, violations of laws governing wages earned and hours worked—there is strength in numbers.” She also likened these provisions to “yellow dog” contracts (deemed illegal in 1932) that required employees to, as a condition to begin work, sign a contract agreeing to not join a union. This Supreme Court decision could impact 25 million employees as the percentage of employees with mandatory arbitration agreements has risen from 2.1% of non-unionized employees in 1992 to 53.9% in 2018. It will also directly impact the 55 cases the NLRB currently has pending. Building-Products.com

The decision gives employers a way to reduce or eliminate the threat of class and collective actions, especially under the FLSA, since companies can compel employees to arbitrate workplace disputes individually rather than as part of a class action. Supporters state that this will allow the arbitration process to work as intended under the FAA, allowing all parties to take advantage of a neutral arbitrator resulting in reduced legal fees and speedier decisions. Detractors such as the National Employment Law

Q. We have a new intern—the daughter of one of the owners. It’s an unpaid internship, but I thought those were illegal. Should we be paying her for the work she performs?

A. The answer is most likely yes. In recent years, the Department of Labor has issued clarifying guidance on what qualifies as a bona fide internship. For a review of that guidance, read https://www.dol.gov/whd/regs/compliance/ whdfs71.htm. Essentially, unpaid internships have to benefit the intern, not the employer. To be bona fide, courts have identified the following seven factors as a test: 1. The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, expressed or implied, suggests that the intern is an employee—and vice versa. 2.The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions. 3. The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit. 4. The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar. 5. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning. 6. The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern. 7. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship. If your internship cannot pass the test above, your intern is most likely entitled to both minimum wage and overtime pay under the Fair Labor Standards Act.

Project argue that these provisions hurt workers, particularly those who make low wages, and create enormous barriers if employees have to bring claims alone since few workers have the financial resources to pursue a case on their own. Since all the cited cases were FLSA “wage-and-hour” cases, this decision does not necessarily impact employees right to file class or collective actions for discrimination complaints as, by definition, disparate impact claims require proof of groupwide discrimination to show a pattern. It should also be noted that the Supreme Court has granted cert to review a Ninth Circuit decision (Varela v. Lamps Plus, Inc.) regarding workers’ rights to arbitrate as a class action when it is not specifically referenced in the arbitration agreement. Additionally, this decision should not impact current or future state laws prohibiting certain arbitration provisions or the use of arbitration agreements in certain circumstances such as those in California and New York. What it means for you: First, this decision does not change the fact that arbitration agreements are not right for all employers or for all employment claims. Every situation is different and arbitration is not always the best course of action for every company. Requiring arbitration for all claims may not be beneficial for either party. This decision will not protect companies from action taken under a poorly written arbitration agreement. Among some of the requirements to be valid, an arbitration program and/or agreement cannot be one-sided in favor of the employer and arbitrators must be neutral. Therefore, the agreement should be drafted to specify the benefits an employee gets from mandated arbitration, usually confidentiality and a quicker resolution. Given the Supreme Court’s decision and interest in other arbitration cases, as well as the recent passage of laws in certain states, you should consider consulting your employment attorney if you have or are considering an arbitration agreement for your employees. Paige McAllister Affinity HR Group contact@affinityhrgroup.com

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July 2018

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Coast Wood Closes Shop Cal Coast Wood Preserving, Ukiah, Ca., has ceased treating operations after 47 years and the property sold to a redeveloper. A month prior, 32-year-old sister company Cal Coast Wholesale Lumber was merged into Coast Wood, following the April death of president Joyce Logsdon, who was 99. Secretary/treasurer Gene Pietila will stay on as a consultant to the new owners until the fall, as the plant equipment is liquidated and the site repurposed. Pietala has been with Coast since the early 1970s, leaving in 1981 to help Mike Logsdon launch Fontana Wood Preserving, and returning in 1995 to become Coast’s third and final manager.

Pioneer Adds in Colorado On the heels of acquiring Grand Materials & Supply in Arizona, Pioneer Landscape Centers purchased

Midwest Materials, Longmont, Co. Midwest Materials will become a Pioneer division with existing management and employees. Currently celebrating its 50th anniversary, Pioneer operates 37 retail distribution centers and 23 quarries and production facilities across Arizona and Colorado, with plans to expand into Texas, Nevada and California later this year.

Flameproof Bursts on to Scene in the West

Pacific Flameproof & Wood Specialties Corp. has opened in Lake Oswego, Or., as the exclusive provider of FlameTech interior fire retardant treated wood to the western U.S. Headed by executive VP of operations Nathaniel Bruce, formerly of Sherwood Lumber, Pacific Flameproof has partnered with Royal Pacific Industries, Rainier, Or., as its licensed treatment services provider.

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US LBM Picks Up R&K U.S. LBM Holdings has acquired Arizona’s R&K Building Supplies. Founded in 1974, R&K’s expansive facilities include sales offices, showrooms, a lumberyard, truss plant, and warehouses on 20 acres in Mesa, Az. R&K president Chad Coons will be retiring from the company in the coming months and his son, Chip Coons, currently vice president of R&K, will continue as president.

SUPPLIER Briefs Whitsell Manufacturing , Saginaw, Or., plans to rebuild following a May 27 that reportedly decimated the 190,000-sq. ft. plant and Woodguard operation in 30 minutes. Investigators are seeking a cause. Boise Cascade , Woodinville, Wa., is now a stocking distributor for all dassoXTR exterior fused bamboo products. Hampton Lumber , Portland, Or., is now exclusive North American sales agent for Sun Mountain Lumber, Deer Lodge, Mt. Ace Hardware opened a new location in Cathedral City, Ca. Forest2Market, Charlotte, N.C., is partnering with The Beck Group, Portland, Or., to launch Sawmill TQ, a new service for gathering and delivering SYP sawmill benchmark data to industry subscribers.

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Industrial and Treated Lumber Specialists

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Ex-Builders Team Opens New Yard in New Mexico A new building supply yard has been launched in Roswell, N.M., by former Builders Do it Center president Justin Ellis and previous branch manager Aaron Coats. Called Elco Building Supply, it soft-opened in June in a 20,000-sq. ft. warehouse with 4,000-sq. ft. showroom on 20 acres previously operated by PCM Building Supply. “We are primarily focusing on roofing materials, concrete accessories, and general construction supplies, but we are handling some forest products related to those core categories such as forming lumber and sheathing,” said CEO Ellis. According to Ellis, the Elco team is “100% ex-Builders,” including Coats as chief operations officer, operations lead Dallas Garthwaite, and sales lead Mary Freeland.

Softwood Lumber Board Upping Its Game The Softwood Lumber Board is embarking on an ambitious new initiative to establish softwood lumber as the preferred choice for the built environment by 2024.

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“We will move from re-think wood when we started, to think wood today, to of course wood in five years,” said SLB chairman Marc Brinkmeyer. To reach the goal, SLB will review and refine its strategy, tactics and funded initiatives to ensure all are optimized and aligned given the changing dynamics in the market. The conditions in 2018 are very different and more advantageous for lumber than they were when the SLB was established in 2011, as such the approach to delivering on its objectives will also need to evolve. The SLB also announced Steve Lovett’s plan to step down as CEO at the end of November, to be replaced by Cees de Jager. Ryan Flom has joined the organization as VP of market promotion & research.

D-Blaze Certified for 2-Hour Wall Assembly Two-hour bearing wall assemblies utilizing Viance’s D-Blaze fire retardant treated lumber and plywood have received a new Underwriters Laboratories (UL and ULC) certification listing. Design No. V335 was certified under the ANSI/UL 263 standard for the U.S. and CAN/ULC-S101 for

July 2018

Canada earning a two-hour fire resistance rating for walls exposed to fire on the interior face. Design No. V335, available at UL’s Online Certifications Directory, will allow architects and specifiers to design FRTW walls with brick, stucco, fiber cement, and other approved UL exterior facings. Ideal for sensitive environments such as schools, healthcare facilities, hotels and multi-family construction projects, D-Blaze fire-retardant treated wood is effective at controlling the spread of flame and smoke, increasing evacuation time, and potentially reducing damages and repair costs caused by fire.

AZEK Takes Over Versatex The AZEK Co., Scranton, Pa., has purchased Versatex Holdings, Aliquippa, Pa., manufacturer of cellular PVC building products for both the new construction and renovation/ remodel markets. Versatex’s management team will remain with the business and continue operations from its production facility in Aliquippa.

Building-Products.com

THINKING Ahead By Andrew Owens, A&M Transport

Follow these rules of the road to become a shipper/ customer of “choice” ndustry is talking, the lumber sector included, about the transportation capacity crunch. Everyone needs to move product from one location to the next; but with the driver shortage, there just aren’t enough trucks available to make everybody happy at the same time. Some businesses, though, may be feeling the squeeze more—and more often—than others. Most likely, from the trucking perspective, that’s because they haven’t taken the necessary steps to become a shipper/ customer of choice. There’s a long list of incentives that can be used for leverage when companies jockey for a favored relationship with carriers, but those that want a better shot at moving to the front of the line will want to focus on the following elements: • Rate Schedule • Fuel Surcharge Program • Accessorial Charges Coverage

Green Light We understand that the wood industry, in particular, is one built on negotiations and handshakes and with the theory that “every deal is a new deal;” but trucking companies prefer the security of an agreed-up-

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on rate schedule negotiated annually. We can’t negotiate with our fuel company, our tire provider, our drivers, and so on; therefore, we’re not really in a position to negotiate our rates, either. Having a fair rate schedule in place—whether it stipulates payment per mile or at a flat rate—will go a long way toward elevating a customer’s position with the carrier. By the same token, we place a lot of value on relationships with businesses that offer a fuel surcharge

July 2018

program. Base rates remain the same, but the fuel surcharge adjusts weekly based on U.S. Department of Energy pricing to compensate for the wild fluctuations that have come to be associated with fuel prices. Removing the burden of yo-yo fuel prices from the carrier’s back, along with working up a reasonable rate schedule, can position a customer as a preferred partner that the trucking business will be motivated to service. Accessorial charges represent

Building-Products.com

A Special Series from North American Wholesale Lumber Association

another opportunity for shippers/customers to capture the attention of trucking lines. Most lumber mills, for instance, are receptive to tarping fees—that is, paying the carrier to protect the shipment from the elements so that it arrives at the destination in the same condition as when it was loaded. Other examples include paying the carrier for multiple stops, with portions of the load dropped off at different locations, and extending fair compensation when drivers are kept waiting at a facility for an unreasonable amount of time, through no fault of their own. Here’s yet another scenario: my company, A&M Transport, is based in southern Oregon, home to at least a dozen sawmills. We work the I-5 corridor crossing Oregon, Washington and California. When we send one of our trucks into California or some point south to deliver lumber, we also need to load something for the return trip to the Pacific Northwest—typically delivering it to the major metropolitan areas of Salem and Portland. Now we have an available truck and a sawmill that needs it but that is located several hours south. In a situation where the carrier and the customer have forged a solid alliance, the sawmill might tack some extra money on to the normal rate to help offset the cost of the “empty miles” that must be covered for the truck to get back. The carrier would accept that bonus as an accessorial charge and, again, see that particular customer as the kind of fair and accommodating business that it wants as a partner.

Red Light If you want to alienate your carrier, there are a couple of no-nos that could send you to the back of the line for deliveries: • Treat drivers poorly • Do not have truck scales onsite • Keep limited hours of operation A customer’s culture in terms of interaction with drivers is huge and has an equally huge impact on the relationship with the carrier. No one deserves to be treated like a second-class citizen, but there are still some places where truckers are not welcomed beyond the loading area—and, sometimes, they aren’t received much better there. Gaining favor with a trucking firm means having restrooms and break rooms available to drivers who have been on the road for hours, and it also means treating them with basic courtesy and respect. If drivers feel ostracized, that could explain why their carriers opt to take on a delivery for your competitor instead. It may seem like a trivial detail, but having truck scales on the premises is also a big plus in truckers’ eyes. It’s a major inconvenience and loss of time to wait for a shipment to be loaded only to have to return to the facil-

Building-Products.com

ity, get back in line, and unload or adjust freight because truck scales miles down the road show that the load is over the legal capacity. Perhaps the biggest factor that might make a trucking company take on another job instead of yours is hours of operation. Facilities that have expanded their hours to accommodate drivers are having fewer issues getting their product moved. A plywood manufacturer that limits shipping hours to 6 a.m. to 1 p.m., for example, could find carriers passing it by. If a driver misses that window, there’s no waiting until the next morning to pick up the load. The truck moves on to the next location on the list, because that company may be open for loading until as late as, say, 8 p.m. Speaking of loading and unloading, getting it done expeditiously also bears a lot of value for carriers. Yes, there is a shortage of labor; and everyone is scrambling for workers. But if you can man your facility with enough staff to get trucks in and out within an hour, you’re bound to climb to the top of the carrier’s list of favorite customers. If everyone could focus on that, there’d be many more happy truckers—and customers, too, I think. And by customers, I mean shippers and receivers. “Shipper of choice” has become a buzz phrase in the trucking industry, but the definition is generic. In the wood sector, the customer might be lumber brokers, manufacturers, sawmills, lumberyards, or another business. Whichever one you are, if you aren’t locking in rate schedules, offering a fuel surcharge program, covering accessorial charges, accommodating drivers, expediting loading/unloading, and keeping longer shipping hours, you’re already playing catch-up. Plenty of your rivals have already incorporated these components into their processes, but it will take newcomers time to build up their reputation as a good customer and the loyalty of carriers. – Andrew Owens is CEO/manager of A&M Transport, Glendale, Or. (www.amtransport.com).

About NAWLA North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.

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EWP & MASS TIMBER

SPECIAL Report By APA - The Engineered Wood Association

Skilled labor a top concern for builders

2018 market outlook

or the most part, the level of residential construction in the United States in 2018 is going to be in line with what was discussed a year ago. In total, housing starts are projected to run at 1.3 million units, with single-family starts at 890,000 units and multifamily starts at 410,000 units. Securing skilled labor remains a primary concern for home builders, apartment developers and remodelers. The scarcity of skilled labor is not unique to the construction industry, as the unemployment rate is less than 4%

Building-Products.com

and at the lowest level in 17 years. The current level of housing starts is still insufficient to meet the demand for new housing units, which is driven by household growth, replaced units removed from the stock due to demolition or disaster, and other factors, such as second-home demand. This helps explain the sustained upward pressure on prices and rents, signaling that construction activity should continue to rise through 2020. However, the supply-side constraints of labor and available lots are

likely to inhibit the capabilities of home builders and apartment developers to respond fully to the demand pressures.

Federal Reserve, Government Spending, Interest Rate Hikes In last yearâ&#x20AC;&#x2122;s discussion, the prospects for the Federal Reserve beginning to reverse its policy stance and start to reduce the size of its balance sheet in the second half of 2017 was mentioned, but not pursued in detail. It is a year later and we have a better idea as to the likely path of monetary policy through 2020. Based on statements made by new Federal Reserve chair Jerome Powell and other board members, it is expected that the target range for the federal funds rate will be raised four times in 2018 and at least twice in 2019. The target range was already raised once in 2018 and the current federal funds rate is 1.75%. With the guidance the Federal Reserve is providing, this suggests the federal funds rate will be in the 3% range sometime in 2019. That is not the total story though. The Federal Reserve also plans to reduce its holdings of U.S. Treasury securities and mortgage-backed securities. In other words, the Federal Reserve will be a seller of long-term financial assets. The stated plan, which can be scaled back should economic conditions warrant, calls for the Federal Reserve to sell $500-600 billion of the combined securities on an annual basis. As shown in the graph on the left, this is a big change from the policy

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stance that was in place during the quantitative easing positions taken earlier in the decade when the Federal Reserve was purchasing U.S. Treasury securities and mortgage-backed securities. This tightening of monetary policy comes at the same time the federal government’s deficit is going to be on the rise. Tax cuts enacted at the end of 2017 combined with an increase in spending points to the federal government deficit approaching $1 trillion in 2019 and 2020. (See the middle graph at left.) Budget deficits of this magnitude were experienced earlier this decade, but the Federal Reserve was very active in absorbing the growth in federal government debt. That is not going to be the case this time. The implication from this mix of policy decisions is that interest rates are going to be on the rise. As it applies to the rate on a 30-year fixed-rate mortgage, we should not be surprised to see that running in the 5-5.5% range by 2020.

Housing Starts & Inventory The inventory of homes available for sale is very low, contributing to the rise in existing home prices, which this year will be around 6%, similar to 2016. The scarcity of homes for sale is not expected to ease for the next two years, so further increases in home prices are in the cards. The combination of higher mortgage rates and home prices will heighten the affordability challenge faced by potential home buyers, whether they are renters or existing owners looking to trade up. With both the supply and demand forces at work, the forecast calls for housing starts in the U.S. to gradually move into the 1.35–1.4 million unit range by 2020. Single-family starts are not expected to return to the one million level though. The last time single-family starts were at or exceeded one million units was in 2007, when they totaled 1.05 million. – The entire 2018 market forecast, including all market segments and production outlook, as well as statistical data, is included in APA’s 2018 Structural Panel & Engineered Wood Yearbook (Form MKO-E184). The publication can be purchased from APA’s website at www. apawood.org/resource-library.

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Building-Products.com

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EWP & MASS TIMBER

SPECIAL Report By Bill Parsons, WoodWorks – Wood Products Council

Mass timber:

A growing market for lumber

CURRENTLY under construction, First Tech Federal Credit Union headquarters includes a CLT floor system and heavy timber post-and-beam structure. (Photo courtesy Hacker Architects)

ecause of their strength and dimensional stability, mass timber products offer a carbon-friendly alternative to fossil fuel-intensive materials for many applications where wood hasn’t always been considered. This, combined with the aesthetic possibilities of exposed wood, is driving what many are calling a mass timber revolution across the U.S.—but are we really seeing evidence of that beyond the groundbreaking “tall wood” buildings that tend to make the news? The team at WoodWorks is uniquely positioned to answer this question. Our role is to work one-on-one

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with architects, engineers, contractors and others involved in the design and construction of commercial and multi-family wood buildings. We provide technical support on projects (at no cost), as well as education and resources—and I can say, without hesitation, that the interest we’re hearing so much about is resulting in real mass timber buildings. In the last two years, WoodWorks staff have supported 339 mass timber and/or heavy timber projects across the U.S. Of those, 93 have been built and the balance are in design or nearing construction. Products and sys-

tems being used include cross-laminated timber (CLT), nail-laminated timber (NLT), dowel-laminated timber (DLT), glued-laminated timber (glulam or, in panel form, GLT), and solid wood. For example, when Hacker Architects began designing the First Tech Federal Credit Union headquarters in Hillsboro, Or., it had finally found the perfect project for mass timber. Hacker staff had been making use of WoodWorks education opportunities for a couple years, and had called the Regional Director in the Pacific Northwest various times to discuss the use of CLT. The First Tech headquarters consists of a CLT floor system and heavy timber postand-beam structure—five stories in total, and more than 150,000 sq. ft. WoodWorks provided support on topics that included diaphragm design, acoustic assemblies, vibration, locally available products, and protecting panels from moisture on site. Certainly, some jurisdictions have been quicker to embrace mass timber than others. Portland continues to be a leader, most recently permitting a 12-story CLT office building, Framework, designed by LEVER Architecture. Framework is part of a trend toward mass timber offices that started in the Pacific Northwest but is increasingly widespread. Consider that most offices in the U.S. could be built with a wood structure yet very few are. Many develop-

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ers and designers think they’re limited to concrete and steel for workplace environments—because that’s the common default—but, in fact, wood systems can accommodate the space and performance needs of office occupancies while providing advantages such as cost savings, versatility, and a reduced construction schedule.1 For some, creating a unique, interesting space is a priority, both to impress clients and potential staff. As businesses compete for employees, many seek to attract top talent with a workplace that fosters creativity and teamwork while also reflecting the company culture. To achieve this, there is a trend toward customizable space with open floor plans and exposed “honest” structure that attracts tenants looking to inspire their workforce. Mass and heavy timber building systems are ideally suited to meeting these objectives. In the Midwest, for example, T3 Minneapolis was a game changer for office design. At seven stories and 220,000 sq. ft., it demonstrated the feasibility of exceptionally large timber projects as a means to reduce carbon footprint while creating warm, appealing spaces. Inside, exposed glulam columns and beams, and NLT floors, offer a modern interpretation of historic wood buildings found in many U.S. cities. From a cost and construction standpoint, a great deal of effort went into developing efficient systems to reduce schedule and allow for potential replication. The timber erection was completed in two and a half months at an average of nine days per 30,000-sq. ft. floor. The project team estimates that the building is 30% lighter than a comparable steel design and 60% lighter than post-tensioned concrete, which allowed a reduced foundation depth. The developer, Hines, is now moving forward on similar T3 projects in Atlanta and Chicago.

At seven stories and 220,000 sq. ft., T3 Minneapolis was a game changer for office design. ARCHITECT: MGA | Michael Green Architecture, DLR Group STRUCTURAL ENGINEER: Magnusson

The four-story Albina Yard office building was designed as a precursor to LEVER’s 12-story Framework project. It includes a glulam frame and CLT panels.

The John W. Olver Design Building at UMass Amherst is one of the most advanced mass timber projects in the country.

ARCHITECT: LEVER Architecture

STRUCTURAL ENGINEER: Equilibrium

STRUCTURAL ENGINEER: KPFF Consulting

Klemencic Associates

Engineers

DESIGN ASSIST/BUILD + NLT SUPPLIER:

CONTRACTOR: REWORKS

StructureCraft CONTRACTOR: Kraus-Anderson Construction WORKSPACE: Perkins + Will

CLT SUPPLIER: DR Johnson PHOTO: LEVER Architecture

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ARCHITECT: Leers Weinzapfel Associates Consulting; Simpson Gumpertz & Heger (EOR) CONSTRUCTION MANAGER: Suffolk TIMBER SUPPLIER: Nordic Structures TIMBER INTALLATION: North & South Construction; Bensonwood PHOTO: Alexander Schreyer, UMass Amherst

PHOTO: Corey Gaffer

For office applications, roof and floor decks of CLT, NLT, or tongue-and-groove decking over glulam sub-purlins are often paired with glulam columns and beams. Many office developers assume they need open interiors free of columns or bearing walls for space flexibility. However, while heavy and mass timber systems can be built efficiently with ample column spacing (in the range of 30 by 30 feet), wood columns can be a desired feature without hindering flexibility—which can lead to smaller column grids and further economy. Given that one of the key features of mass timber is the aesthetic of exposed wood, it makes sense that it’s also being used in an increasing number of schools. Biophilia, which is the innate human attraction to nature, has been extensively studied, and research has shown that the presence of visual wood in a room has impacts similar to the presence of plants and natural views. This includes reduced stress, improved cognitive function and creativity, and overall well-being. For office design, these benefits can translate to improved productivity and employee satisfaction, but they’re equally applicable to learning environments.2 The new John W. Olver Design Building at UMass Amherst is one of the most advanced mass timber projects in the country—a four-story, 87,500-sq. ft. building comprised of innovative wood systems.3 Designed to bring students of architecture, landscape architecture and building construction under one roof, the building itself is a teaching tool. The structure, which includes a glulam column-andbeam frame, glulam brace frame and CLT shear walls, is largely left exposed, as are many of the MEP systems. Features also include an advanced timber-concrete compos-

July 2018

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ALBINA YARD commercial project in Portland, Or., mixes cross-laminted timbers and glulam.

ite floor system, and a unique timber-steel composite zipper truss. Use of mass timber allowed the team to demonstrate key aspects of wood design, including fire resistance, acoustic control, energy efficiency and sustainability. As a product category, and from a market perspective, mass timber is a complement to other wood building systems—one that offers a unique combination of aesthetics, structural performance and opportunity for innovation. Because of its strength and stability, it tends to be used as an alternative to concrete, steel or masonry in many applications, often in conjunction with post-and-beam or

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light-frame systems, or in hybrid systems with steel or concrete. Where light wood framing is permitted by code, mass timber isn’t a frequent substitute because dimension lumber framing offers such a compelling combination of performance and cost. While mass timber is at its most dramatic in largescale projects like T3 Minneapolis and the UMass Design Building, it is being used to great effect in projects of all size, bolstered by testing results that have led (and continue to lead) to greater code acceptance, as well as easier availability through an increasing number of manufacturers. Combined with the interest we’re seeing among design and building professionals, it is reasonable to assume that mass timber will soon be as rooted in the U.S. market as other building systems. – Bill Parsons, PE, is vice presidentoperations, for WoodWorks – Wood Products Council and a licensed engineer in the State of California. He can be reached at bill.parsons@woodworks.org.

Footnotes: 1 Breaking Convention with Wood Offices, WoodWorks, 2018 2 Wood in the Human Environment: Restorative Properties of Wood in the Built Indoor Environment, David Fell, 2010; Wood and Human Health, FPInnovations, 2011 3 Inspiration through Innovation, a case study of the John W. Olver Design Building at UMass Amherst, WoodWorks, 2017

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EWP & MASS TIMBER

SPECIAL Report By APA - The Engineered Wood Association

New in the 2018 energy codes A brief lesson on buried ducts he 2018 International Residential Code (IRC) and the International Energy Conservation Code (IECC) offer new provisions for HVAC duct design within ventilated attic spaces. These provisions will increase the options for builders who are working to meet the requirements of the energy code using the performance path or Energy Rating Index (ERI) method of compliance. The energy codes address all major components and systems in a structure, including building envelope, mechanical systems, service water

heating, lighting, and air infiltration. Compliance with the energy code has primarily been driven by a prescriptive method, until recently. The new options with the performance path method use energy modeling to demonstrate how the building as a whole uses equal or less energy than a home built to the prescriptive path. The performance path allows builders to maintain their preferred building specifications for structural design and comply with energy code requirements using energy-neutral alternatives for energy performance.

FIGURE 1: Method 1: Partially buried ducts

In addition to buried ducts in ventilated attic spaces, a few examples include: attic insulation, tight air leakage rate (air sealing), efficient wall construction, insulated foundation walls, and energy-efficient heating, ventilation and air conditioning (HVAC) systems.

Two Provisions, Three Methods

In the first provision for HVAC ducts, when ducts in ventilated attic spaces are “deeply buried” they can be considered to be insulated to an effective R-25 value for energy modeling purposes. Under the second provision, the ducts within a ventilated attic space can be modeled as being in conditioned space, provided additional criteria are met. To meet the 2018 IRC and IECC installation criteria for ducts buried in insulation, heating and cooling system ducts within ventilated attics must be installed in accordance with one of the three methods, dependent on specific climate zone requirements. Method 1: Partially buried ducts R-Value = Minimum Figure 1 (at left) illustrates ducts partially embedded in attic insulation, ducts resting on top of truss or rafter chords and ducts resting between truss chords. Method 2: Deeply buried ducts R-Value = Effective R-25* Figure 2 (at left) illustrates ducts that are “deeply buried” in attic insulation.

FIGURE 2: Method 2: Deeply buried ducts

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Method 3: Ducts in conditioned space R-Value = Minimum+* Figure 3 (at right) illustrates ducts considered to be in a conditioned space. (*Criteria must be met to meet the stated R-value.)

Added Benefits of Radiant Barrier Sheathing Radiant barrier roof sheathing absorbs solar energy and heat. In the summers, when the sun heats the roof, the roof assembly absorbs the solar energy and heat. When the roof assembly’s temperature exceeds the ambient temperature within the attic, heat from the roof assembly is transferred into the attic. Similarly, when ventilated attic ambient air is cooler than the air inside the building envelope, heat from the conditioned space transfers through the ceiling assembly and into the attic. A radiant barrier on the underside of the roof deck helps maintain the ambient temperature in attics. Radiant barrier roof sheathing panels are most effective in warmer climates, but can also be used in colder climates. For climates where heating is the dominant consideration, the energy

FIGURE 3: Method 3: Ducts in conditioned space

savings is less than in warmer, cooling dominated climates. The 2018 IECC delivers more flexibility for meeting the code’s performance pathways, including Deeply Buried Ducts and Ducts Considered in Conditioned Space. These options can reduce energy use and, when radiant barrier panels are added, further reduce the radiant heat gains in homes.

SANTA FE SPRINGS, CA •

The results for homeowners are cooler homes, lower utility bills, improved energy efficiency, and a more comfortable indoor environment. – For more information on the performance path or to download The Performance Path to Energy Code to Compliance (Form R505), visit www. apawood.org/energy-efficiency.

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8’ – 66’

July 2018

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Simpson Strong-Tie Company Inc. SDWSFRAME17

The versatile Strong-Drive® SDWS Framing screw is a code-listed, high-performance screw designed for a wide-variety of remodeling projects. The screw’s SawTooth™ point gets you started fast with no predrilling, while the serrated threads reduce torque in every drive. Load rated to replace 16d, 10d and 8d nails in most framing applications, try the new SDWS Framing screw. To learn more, visit go.strongtie.com/framingscrew or call (800) 999-5099. SDWS Framing Screw

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EWP & MASS TIMBER

SPECIAL Report By David Barber, Arup

An update on fire safety in CLT buildings uildings using new innovations in construction such as mass timber are becoming prevalent worldwide. Mass timber is becoming popular because it offers an economically favorable construction method for mid-rise buildings, provides for greater sustainability, and looks very different. Buildings with a mass timber structure are being planned and constructed in the U.S. as building owners and designers realize mass timber offers a positive construction solution.

What is Mass Timber? The two most common forms of timber construction are light timber framing and mass timber. Mass timber differs in that the products are “engineered,” being factory made from smaller sawn wood members and the sizes are typically 12 inches or more. Mass timber solutions include prod-

ucts such as glulam, cross-laminated timber (CLT), nail laminated timber (NLT), mass plywood panels (MPP), laminated veneer lumber (LVL) and dowel laminated timber (DLT). CLT panels are becoming a very popular form of mass timber construction, given their two-way span and highly efficient construction for walls and floors. As more mass timber buildings are completed in the US, the benefits are starting to become more wellknown—including lighter construction that can result in savings in foundation works when compared to other materials; offsite prefabrication that allows for highly accurate production, leading to faster overall construction times; and smaller work crews that are safe and quiet. Owners and developers looking for a highly sustainable building solution can also achieve their goals through mass timber.

Mass Timber & Codes Within the U.S., each state adopts one or more model building codes, and all 50 states adopt the International Code Council (ICC) International Building Code (IBC), with some states also adopting the National Fire Protection Association (NFPA) Life Safety Code, otherwise known as NFPA 101. Many states further amend the model codes to provide the basis for construction compliance. Other codes and standards impact construction, fire-protection systems, maintenance and firefighting operations, including the International Fire Code (IFC). Within the IBC, timber can be utilized in Types III, IV and V construction. Types III and IV can be constructed to a maximum building height of 85 feet. The American Wood Council (www.awc.org) and WoodWorks (www.woodworks. org) provide resources and technical guidance on how timber construction can be utilized to maximize height and area. The IBC requires buildings with an occupied floor above 75 feet (defined as “high-rise”) to have an increased level of fire protection and structural performance. Compared to a mid-rise building, there’s a significant increase in expected structural performance for all high-rise buildings in fire.

Mass Timber Construction: What About Fire?

B SKY B: This four-story building in London was constructed of CLT. (All photos by Arup) Building-Products.com

For fire performance, light-timber construction is encapsulated within non-combustible gypsum drywall to achieve protection from fire and a FRR. Mass timber is different in that when it is exposed to fire it achieves a FRR through the insulating benefits July 2018

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of charring, a process of inherent protection based on the section size and mass. The char protects the load-carrying ambient temperature wood, allowing the member to be designed to carry applied forces, given the rate of charring is highly predictable. Guidance on engineering design for mass timber fire resistance is provided within the National Design Specification (NDS) for Wood Construction (AWC, 2018). To assist architects, engineers and contractors, mass timber suppliers provide code-compliant fire tested solutions, for building permit approval. The IBC has several methods for fire resistance compliance, through fire testing or calculation. Fire testing must meet either ASTM E119 or UL 263, which apply a standardized heating regime to a loaded building element to determine the fire rating.

CLT Performance in Fire

CLT performance in fire has been very well studied, but the performance is not always well understood. There has been significant fire testing in Europe, Canada and more recently, in the U.S. The outcomes from fire testing have been consistent, showing that CLT will char in a predictable manner

FIRE PROTECTION Research Foundation completed CLT compartment testing, in concert with National Research Council, Canada and SP Research Sweden.

and fire resistance is based on the number and thickness of â&#x20AC;&#x153;plysâ&#x20AC;? that each panel is made up of. All North American CLT suppliers have had their CLT panels fire tested to meet ASTM E119, demonstrating a two-hour FRR. These test reports are available from each supplier to support the use of their products as load-bearing floors or walls. This has led to CLT guides such as the NDS and CLT Handbook providing a FRR calcula-

tion method to support building permit applications for CLT being used for floors and walls. An area of recent research is the differing adhesives being used by manufacturers. There have been two types of CLT adhesive used, with one adhesive system being more resistant to the heat. To therefore improve CLT performance in fire, the North American manufacturing standard (ANSI-APA PRG-320) has recently been updated. From 2021, all CLT panels are required to use adhesives that provide a greater resistance to the heat of a fire and therefore, improve the fire performance of the CLT panels.

CLT Construction Details Details to provide compliant construction are particularly important for mass timber buildings. Some key areas are described below. Concealed Spaces Mass timber buildings that utilize CLT as the primary wall and floor elements have no concealed spaces within the primary structure, due to the solid timber construction of CLT. Spaces for building utilities such as pipes, cables and ducts can be pre-formed with gypsum drywall solutions providing fire separation, similar to other forms of construction. Therefore, concealed spaces, which are an issue for potential fire spread, are mostly eliminated with mass timber construction. Connections Connections in mass timber construction arenâ&#x20AC;&#x2122;t as uniformly specified. CLT panel-to-panel connections are specified by each supplier, with the connections having been fire tested as part of a wall or floor assembly, to meet ASTM E119.

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Penetrations “Through penetrations” occur in all buildings for plumbing, electrical cables, telecommunications, heating and cooling. For penetrations in CLT walls and floors, the installation of a collar, fire mastic or fire damper that has been previously tested for use in a CLT wall or floor penetration is specified. Currently, there are few of these products available in the United States, and more fire testing is underway to increase the catalog of products available to designers.

Fire Risk During Construction Fires during construction are a significant issue with light-frame timber buildings, given that the fire protection of gypsum drywall and sprinkler protection aren’t installed until the building is nearly completed, placing the incomplete building at risk. A major advantage of mass timber construction is that structural members, such as glulam and CLT, do not rely on additional protection measures, such as drywall, to resist fire. The required structural fire ratings are provided by each member as soon as it is installed. Preventing construction fires from starting is always important, and the methods used include eliminating cooking onsite, improved nighttime security, and hot-work supervision (where required). Most mass timber buildings have no need for welding or grinding, eliminating one of the major ignition sources. The use of NFPA 241 “Standard for Safeguarding Construction, Alteration, and Demolition Operations” provides a means by which to reduce the fire risk and consequences of construction fires.

What’s Next for Mass Timber & CLT?

In many jurisdictions, there has been a reluctance to approve mass timber buildings, primarily due to a lack of familiarity with the material and the extent of fire testing available. Although considered ambitious by some, there are high-rise mass timber buildings being planned and constructed in the United States. Realizing that code revisions are needed, given the market demand, the ICC has convened an Ad-Hoc Committee on Tall Wood Buildings to research and address future code changes to allow mass timber buildings to be built above 75 feet. The initial voting has been very positive to the code change proposals. As knowledge and understanding of mass timber’s fire performance continues to develop, there are more opportunities for mass timber construction to be designed and approved. Continued education by organizations such as WoodWorks, Think Wood, and AWC are key to increasing the number of skilled architects, engineers and contractors with mass timber experience. Through increased education, the industry should expect to see more mass timber buildings being constructed. – David Barber is a principal with multi-disciplinary engineering firm Arup, where he specializes in the fire safety of mass timber buildings. For over 20 years he has assisted with fire testing, developing new timber technologies, authoring fire safety design guides for construction, working with wood product suppliers, and completing fire safety solutions for midrise and high-rise timber buildings. He is currently working with the project team for the USDA Tall Wood Building Competition, Framework in Portland, as the design fire protection engineer.

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GLULAM BEAM joint after test: a full-size glulam beam to column connection has just undergone a one-hour fire test.

GLULAM CHAR depth, before and after.

CLT CHAR depth: a CLT floor panel is cut after a two-hour fire test, showing the depth of charring.

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EWP & MASS TIMBER

SPECIAL Report By APA - The Engineered Wood Association

Get the right roof, right from the start plus dead load, and 1/240 under live load only. Special conditions, such as heavy concentrated loads, may require constructions in excess of these minimums, or allowable live loads may be to be decreased for dead loads greater than 10 psf, such as tile roofs. Tip: Panels should be continuous over two or more spans with the long dimension or strength axis across supports.

Is the Nailing Surface Level? To get the roof right, be sure to start with a level nailing surface. If it isn’t level, use shims and/or trusses as necessary. This is where a 6 to 10 foot length of straight lumber or long carpenter’s level may come in handy.

Consider Air Flow & Ventilation PROPER DESIGN and installation of roof sheathing is integral to the roof’s long-term performance.

ood roof design and installation are key to long-term performance of the roof assembly and to the comfort and satisfaction of the homeowner. By following a few simple steps in roof construction, builders can prevent many of the common problems that lead to callbacks.

Start with a Solid Base The wood structural panels selected for the job will play a significant role in the stability and structural integrity

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of the roof. Considerations include panel span rating, panel performance category, and allowable loads. APA recommends any of the following options for roof sheathing: • APA Rated Sheathing Exposure 1 or Exterior • APA Structural I Rated Sheathing Exposure 1 or Exterior • APA Rated Sturd-I-Floor Exposure 1 or Exterior Uniform load deflection limits are 1/180 of span under live load

July 2018

Building codes identify minimum net free ventilation area for roof cavities and attic spaces. For example, a net free ventilation area of 960 square inches for each 1,000 sq. ft. (or 1/150th) of ceiling area is required. Net free ventilation area may be reduced based on certain building code provisions identified in the International Residential Code and International Building Code. Exhaust air from kitchens, baths and laundry should be run through the roof cavity or attic through roof ventilators to the outside. To ensure proper ventilation of the roof cavity or attic space, install baffles with a minimum Building-Products.com

of 1 inch of clear space between the framing and/or under roof sheathing at the eaves. This will prevent the roof insulation from blocking the ventilation paths.

Installing Wood Structural Panel Sheating APA Rated Sheathing panels should be spaced 1/8 inch at panel ends and edges unless otherwise indicated by the panel manufacturer. Use 8d common (0.131 inch x 2-1/2 inches) nails spaced at a maximum of 6 inches on center at supported panel ends and edges. At intermediate supports, panels should be fastened 12 inches on center. Fasteners should be 3/8 inches from panel ends and panel edges. Tip: A reduction of stress accumulated in the panels leads to fewer issues with buckling and deflection. This results in fewer callbacks and, thus, minimized internal stress for the dealer/distributor, too. Once the panel is square, install using the specified fasteners and fastener spacing, starting at the top edge of the panel and working across the width of the panel. Repeat for each row to the bottom of the panel. Stand on the panel over framing near the fastener location to ensure contact with the framing while driving fasteners. Drive fasteners flush with the panel surface. Tip: Options for improved performance: (1) thicker roof sheathing panels, (2) panel edge clips, or (3) panels with tongue-and-groove edges.

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APA recommends using a shingle underlayment felt to minimize roof sheathing exposure to weather, unless otherwise recommended by the sheathing manufacturer. Shingles should be installed according to the

manufacturerâ&#x20AC;&#x2122;s recommendations. More information, guides, and tips on proper installation of APA Rated Sheathing in roof applications is available on the APA website at www. apawood.org.

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EWP & MASS TIMBER

SPECIAL Report By APA - The Engineered Wood Association

Clear the air

What you need to know about the new formaldehyde emissions regulation ew national formaldehyde emissions regulations took effect June 1, prompting questions about chemical allowances in certain building materials. These U.S. Environmental Protection Agency regulations apply to composite wood

Steven Zylkowski is the director of Quality Services Division at APA – The Engineered Wood Association in Tacoma, Wa. He received a B.S. degree in Forest Products from the University of Minnesota, and a M.S. degree in Forest Products from Oregon State University. He chairs the ASTM Subcommittee D07.03 on Wood Panels, the U.S. Technical Advisory Group to the ISO Technical Committee TC89 on Wood Panels and coordinates the NIST committee for U.S. Product Standards PS 1 and PS 2.

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products in the entire United States and are based on the California Air Resources Board (CARB) requirements for similar products. Here are answers to common questions about the EPA’s regulation on wood-based products from Steve Zylkowski, director of Quality Services for APA – The Engineered Wood Association. Question: Let’s clear the air on formaldehyde—what exactly is it? Answer: Formaldehyde is an organic compound found naturally in wood and organic products. It’s also a normal product of human metabolism. Because formaldehyde occurs naturally in wood, there is no such thing as “formaldehydefree” wood. The regulatory focus on formaldehyde has generally centered on the emissions resulting from wood adhesives, such as urea formaldehyde used in interior-type, nonstructural panels like particleboard, medium density fiberboard (MDF) and decorative hardwood plywood. Q: California developed its own regulation several years ago. What role did CARB play in the development of the U.S. EPA regulation? A: CARB’s Air Toxic Control Measure (ATCM) for Composite Wood Products is the foundational guide for the national regulation. The

July 2018

CARB Composite Wood formaldehyde regulation is considered the most stringent formaldehyde emissions regulation in the world. It applies to particleboard, MDF and hardwood/ decorative panels, and finished goods from them, sold into California. The wood industry and several nongovernmental organizations sought and supported U.S. legislation for a national regulation compatible with the CARB regulation. On July 7, 2010, President Barack Obama signed The Formaldehyde Standards for Composite Wood Products Act, which was based on CARB’s ATCM. Q: The regulation specifies composite wood products. What products are defined as composite wood products? A: Particleboard, MDF and hardwood/decorative plywood. Q: What wood products are exempt from the regulation, and why? A: Structural plywood, OSB and other wood structural panels, as well as other structural engineered wood products, such as wood I-joists, laminated veneer lumber and glued-laminated timber are not included in the scope of the CARB and EPA formaldehyde regulations. These wood products are manufactured for construction applications governed by product standards and building codes requiring they be manufactured with moisture-resistant Building-Products.com

adhesives only. The structural engineered wood products have low formaldehyde emission levels. That, and the fact that they are used for construction, led CARB and the EPA to exempt them from the scope of wood composite panels as defined in the regulations. Q: How do dealers and distributors identify exempted structural engineered wood products? A: Engineered wood products with the APA trademark are exempt. In some cases, APA member mills may supply structural products with no stamp on the product. For those unstamped structural engineered wood products, an APA certificate of conformance can accompany the invoice to identify it as an exempt product produced by the APA member mill. Q: For products within the scope of the regulation, what certification and labeling of products is required? A: They’ll be labeled as TSCA Title VI or CARB ATCM Phase II to identify compliance. Q: What certification system is used, and what are they certifying? A: Composite wood product manufacturers are required to use a Third Party Certifier (TPC). The TPCs verify that the manufacturer of composite wood products is capable of complying with the ATCM’s emission regulations. TPCs conduct quarterly inspections and testing, and review routine quality control testing conducted by each manufacturing mill. Q: What should dealers and distributors look for on the regulated products, and when do these regulations take effect? A: The first major implementation date was June 1, 2018. That’s when composite wood products sold, supplied, offered for sale, or imported in the U.S. were required to be certified as compliant with either of the emission regulations. A label will identify which regulation the product is in compliance with. The next big date to keep in mind is March 22, 2019. After this date regulated products must all be TSCA Title VI compliant, whereas before it was one of two options of compliance. – More information about the formaldehyde regulation is available on the APA site at www.apawood.org/resource-library, search term “Formaldehyde.”

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July 2018

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EWP & MASS TIMBER

SPECIAL Report

On Pacific Woodtech Corp.

The best known EWP company you may not know acific Woodtech Corp. is a mega-producer of engineered wood products that many have not come across—or have you? It has been producing laminated veneer lumber and I-joists with others’ names on them for about 20 years—until recently. Certainly, lots of distributors are familiar with Pacific Woodtech, or PWT, as it is often called for short. And, of course, its competitors have been keenly aware of its presence in the market through the years. Established over 20 years ago, PWT historically did not put its own name on the products it produced. Finally, just a couple of years ago, it decided it was time to start applying its name to I-joists and LVL that were already in the market. Pacific Woodtech’s is one of the largest LVL plants on the planet. It is located halfway between Seattle, Wa., and Vancouver, B.C., in the heart of Northwest timber country, where there’s an

abundance of strong Douglas fir fiber. PWT was started as a greenfield plant, breaking ground in 1998. It more than doubled its production capacity with an additional LVL press in 2006—unfortunately just as the housing market was beginning to crash. With support of its parent company, it weathered the storm and came out stronger during the upturn with additional investments in capacity. We sat down with Pacific Woodtech president and CEO Jim Enright and VP of sales & marketing Dan Semsak, to get a little background and find out why the change of direction. BPD: What prompted you to come out of the shadows? Semsak: Private-label doesn’t work for every distributor or every market. As the North American residential market improved, we realized that we needed to develop a national brand to grow. Private-label can result in an exponen-

UNTIL RECENTLY Pacific Woodtech’s engineered wood products have primarily been sold under other manufacturers’ labels.

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tial number of SKUs, if not managed properly. Through this change, we have become more efficient. However, more importantly, we can better serve all our customers with more production and on-ground inventory. BPD: What makes you unique? Semsak: It really comes down to service and support. We service our customers well with the whole of the company. We do make some of the highest quality EWP in the industry, but our competitors also make good quality products. So, we set ourselves apart by being straight up with our customers. It is a shared commitment to the market. BPD: How did you adopt what you have learned from producing private-label products to the new Pacific Woodtech brand? Semsak: Every market is different. We learned to customize our approach to specific markets by working closely with our customers on the support needs of downstream accounts. Sometimes, that is with a specific product line or with customized literature. We try to create tools to make our customers successful. There are complementary products to our EWP that our customers may need to better compete. We will help them secure those suppliers weather it is software, glulam beams, fasteners or rimboard. BPD: What is your path to market? Semsak: We strongly support twostep distribution. EWP sales is an area where stocking distribution brings real value to the chain. We operate a huge facility. It is not possible for us to ship job packs or make onesy-twosy type product orders. We rely on the efficiencies of the distribution chain to offer maximum support to downstream customers. It’s a partnership. Building-Products.com

BPD: Where do you ship? Throughout North America and overseas. We have three main product lines: residential and commercial, export, and industrial products. BPD: How did you get started in the industry? Enright: Purchasing TJI’s for construction projects in Southern California. Eventually, I went to work for Willamette Industries selling I-joists, LVL and glulam beams. Before Willamette was purchased by Weyerhaeuser, I moved onto Rosboro, in charge of sales. Finally, I ended up at Pacific Woodtech as they went through some leadership retirements. Semsak: I studied Japanese in college. Little did I know at the time, the Japanese build a lot of wooden houses. I was hired on with Vanport International to sell metric-size lumber, produced here, to Japan. When the Japanese market collapsed in the late ’90s, I went to work for Jim at Willamette in EWP. After a few years as the lumber sales manager at Plum Creek, I started at Pacific Woodtech. We are glad to have Jim leading PWT. Most of our team hails from the EWP industry.

Building-Products.com

PACIFIC WOODTECH’S LVL plant in Burlington, Wa., is one of the industry’s largest.

BPD: What challenges do you see on the horizon? Enright: Labor supply, mostly. Labor is the governor on housing starts. There are not enough loggers, truckers, framers and anywhere in between to fill the pipeline. Housing starts seem to only be able to grow in the 8-10% path we have been on in recent years due to lack of supply directly tied to lack of sufficient labor. So, is that a bad thing? Not necessarily, because it limits the chances of a bubble and resulting crash.

BPD: What would you say to a young person looking to get into your industry? Semsak: The opportunities are amazing. Have patience and initiative. Somebody will grab ahold of you and show you everything they know. Many people are close to retirement and looking to pass the torch. We are a relationship business where most offers are done on a handshake. Integrity means something. And, we have a lot of fun!

July 2018

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MOVERS & Shakers Gary Okimoto, ex-Honolulu Wood Treating, has joined Kelleher Corp., San Rafael, Ca., in sales from Kapolei, Hi. Marv Askey has retired after more than 45 years in the industry, the last 17 as western region sales mgr. for Boise Cascade’s EWP business, Boise, Id. Phil Odom has been named business director for structural products with Roseburg, Springfield, Or. Kevin Smith is now sales mgr.-plywood & lumber; Gary Hayes, business mgr.-distribution; and Blake Keitzman, sales lead, plywood & lumber. Craig O’Rourke has retired after 40+ years in the industry, the last seven with Sun Mountain Lumber, Deer Lodge, Mt. Ron Liebelt has been appointed commodity mgr.-global lumber with TransPak, San Jose, Ca. Brian Wells is new to the glulam sales department at Rosboro, Springfield, Or., as director of marketing. Rob Freres has been promoted to president of Freres Lumber Co., Lyons, Or. Chase Wright is now assistant store mgr. at Home Depot, Firestone, Co. Vicky Boyle, ex-Solatube, is new to outside sales with ABC Supply, San Diego, Ca. Dale Brown has been named president of USNR, Woodland, Wa. Other promotions: Eric Brousseau, VP-marketing; Chuck Van Horn, VP-capital projects; and Mark Culpepper, VP-turn-key projects. Matt Sherman has joined the sales team at Taiga Building Products, Rocklin, Ca.

John Mergy has been promoted to VP of information technology for Do it Best Corp., Fort Wayne, In. Marilyn Thompson, director of marketing & communications, APA – The Engineered Wood Association, Tacoma, Wa., retired June 29 after 33 years with APA. Adrian Schoonover, vice president of engineering, RoyOMartin, Alexandria, La., has reitred after 19 years with the company. Justin Heineman has been named VP, general counsel, and corporate secretary for BlueLinx, Atlanta, Ga. Steven Shepard, ex-Stanely Black & Decker, has been named director of product management for Ridgid, Elyria, Oh. Marvin Ellison, CEO of JC Penney, has been appointed president of Lowe’s, Mooresville, N.C., succeeding retiring Robert A. Niblock. Sharon Cheralike is now handling employee compensation programs for Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Do It Best Teams with Paint Supplier Do it Best Corp., Fort Wayne, In., has formed an exclusive strategic partnership with national paint supplier Paint Sundries Solutions, Seattle, Wa. The deal will provide Do it Best members additional opportunities to grow and strengthen their paint departments with greater access to PSS’s customized retailer solutions, merchandising design services, and broad product selection. As a no-adder vendor, PSS purchases by retailers can now bill through the co-op and accrue toward their rebates.

THUNDERBOLT WOOD TREATING “WE TREAT WOOD RIGHT”… Quality Wood Treating Services Since 1977 3400 Patterson Rd., Riverbank, CA 95367 • Fax: 209-869-4585

Danny Sosa: (209) 747-7773 • dannys@thunderboltwt.com

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Building-Products.com

NEW Products

Instant Dust Barrier

PVC Color Treatments Versatex Building Products is joining forces with Aqua-DIY to offer a full line of environmentally friendly color treatments and woodgrain finishes for cellular PVC. Meant for architects, builders and homeowners who desire the

weather-resistance of cellular PVC, the line is designed to confidently apply any color imaginable—even realistic woodgrain patterns—to standard white PVC components such as trimboards and mouldings. n VERSATEX.COM (724) 857-1111

PARR

ZipWall has introduced the MagStrip Dust Barrier Fastener for drop-ceilings. The fastener offers commercial contractors a quick, safe way to keep a dust barrier tight between poles. Each magnetic strip attaches onto the steel grid of a drop-ceiling using a ZipWall pole and the specially designed applicator. Each package contains four 26” magnetic strips and one applicator. n ZIPWALL.COM (800) 718-2255

LUMBER COMPANY 14023 Ramona • PO Box 989 Chino, CA 91708

www.parrlumberchino.com (909) 627-0953 Fax 909-591-9132

• Plywood/OSB

• Hardwood Panels

• Plyforms

• Dimension Softwoods

• Composites

• Dimension Hardwoods

• Melamines/Vinyls

• Pine & Fir Boards

Michael Parrella – x15 • Vince Galloway – x19 Janet Pimentel – x23

• Chris Hexberg – x22

Nestor Pimentel – x31 • Joe McCarron – x21 George Parden – x28

• Bert McKee – x16

Dominick Cosolo – x14

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Classy Polymer Siding ProVia’s new Willowbrook Super Polymer Siding caters to the growing demand for .042” panels due to their increased performance and durability. The siding’s delicate cedar woodgrain finish provides a subtle and sophisticated look. n PROVIA.COM (888) 728-0316

Building-Products.com

At Royal Pacific you’ll pay no more, but get extra. We guarantee it.

Hi-bor® 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*.

The Ultimate Router The Bosch Max Palm Edge Router offers the power and cordless freedom to deliver advance routing and trimming results. The lightweight 12V tool weighs 2 lbs. and has an ergonomic offset design that makes it the choice for comfortable, compact edge routing and trimming. A compact grip area is positioned over the workpiece for maximum stability when edge forming and trimming.

FirePro® 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*.

Advance Guard® 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*.

Providing Customer Satisfaction in All We Do

P.O. Box 75 • McMinnville, OR 97128 503-434-5450 • FAX: 888-TSO-WOOD (888-876-9663) 28770 Dike Road • Rainier OR 97048 503-556-1297 • Fax: 503-556-1709 * See product warranty for details. Hi-bor®, FirePro® and Advance Guard® treated wood products are produced by independently owned and operated wood treating facilities. Hi-bor®, FirePro® and Advance Guard® are registered trademarks of Koppers, Inc. ©10/2014

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Royal Pacific Merchant ad 9_14.indd 1

July 2018

n BOSCHTOOLS.COM (877) 267-2499

A New Set of Ratchets Milwaukee Tool is rolling out new Ratchet and Socket Sets, designed for better access in tight spaces. Each of the new sets feature a slim profile 90-tooth ratchet and wrench-compatible sockets uniquely designed with four parallel flats to deter rolling. The ratchet in the set is designed with 90 teeth for 4° of arc swing and also has a slim profile and flush directional lever which allow it to conveniently access the most hard-to-reach applications. n MILWAUKEETOOL.COM (800) 729-3878 Building-Products.com

10/27/14 4:14:53 PM

888-807-2580 Bend, OR

www.pelicanbayfp.com DISTRIBUTION LOCATIONS Colton / Fontana / Modesto / Salinas / Stockton, CA PRODUCTS & SERVICES Framing Lumber / Pallet Stock / Industrial Lumber / Softwoods Hardwoods / Cedar / Fencing / Decking / Redwood Custom Cut Stock / Treated Lumber / Tile Battens 3-Hole & Slotted Vents / Custom Cutting / Remanufacturing Heat Treating / Fire & CCA Treating

Flame-Fighting FRTW FlameTech fire retardant treated wood from Pacific Flameproof & Wood Specialties is designed to reduce the spread of flames and smoke development caused by fire. The pressure-impregnated treated lumber and plywood is recognized by building codes as an ideal alternative to other construction materials, which are classified as noncombustible. This gives builders and architects flexibility in design for both residential and commercial projects. n PACIFICFLAMEPROOF.COM (971) 600-7570

“Focused on the future with respect for tradition”

Respecting the forest, honoring the past, building the future. A nation’s pride you can build on.

Manufacturers of 6 million bd. ft. monthly of • 5/4 & 6/4 Ponderosa Pine Shop • 4/4 Premium Pine Board Programs State-of-the-Art Hewmill & Headrig Mill Contact Sheldon Howell

(509) 874-1163

Yakama Forest Products 3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162

www.yakama-forest.com

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Laser Connections Dewalt’s 20V MAX Tool Connect Red and Green Tough Rotary Lasers feature Bluetooth connectivity, allowing them to connect to the Tool Connect app for approximate location tracking and tool customizations. The lasers offer IP67 debris/water resistance, 2-meter drop protection, and traditional beam or high-visibility green beam. They have a 250-ft. interior range or a 2,000-ft. exterior range when used with a detector. n DEWALT.COM (800) 433-9258

Building-Products.com

July 2018

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Digital Fence Designer CertainTeed’s new online home exterior visualization tool, Fence-It, creates a realistic rendering of how various fencing products will look in a yard before homeowners spend a cent out of their budget. n CERTAINTEED.COM

Modified Barnwood Drift by Thermory USA provides the popular look and texture of rustic/weathered barnwood right out of the box— along with consistent quality and stability, plus Class 1 durability (25+ years) for resistance to rot and decay. The modified wood line offers the grayed look many want, while being readily available and offering dependable performance for their projects. n THERMORY.COM (847) 256-8828.

PROUDLY SERVING THE FOREST PRODUCTS INDUSTRY SINCE 1896

CONVENIENTLY LOCATED IN THE HEART OF THE PACIFIC NORTHWEST “TREATING COASTAL DOUGLAS FIR IS OUR SPECIALTY” TSO MARKETS & APPLICATIONS SERVED GENERAL & HEAVY CONSTRUCTION • HIGHWAYS & BRIDGES • MARINE/AQUATIC AGRICULTURE/AQUACULTURE • MILLWORK • EXPORT • SAWN LUMBER & TIMBERS ROUND TIMBER PILING (MARINE, FRESH WATER & FOUNDATION) GLUE-LAMINTED BEAMS, COLUMNS & ARCHES ACQ THE INDUSTRIAL TSO SPECIALIST CUSTOM TREATING CHEMONITE® ACZA KILN DRYING (KD & KDAT) PENTACHLOROPHENOL TYPE A HEAT STERILIZATION • WWPI BMPs 50-50 CREOSOTE PETROLEIUM 5 RETORTS: FROM 50’ TO 156’ CLEAN CREOSOTE (P1/13) RAIL SERVICE (UP & BNSF)

SALES & ACCOUNTS MGR. JERRY FARLEY 1-503-618-9155 JFarley@JHBaxter.com

3494 Roosevellt Blvd. EUGENE, OREGON 1-866-960-9703

www.JHBaxter.com

CUSTOMER SERVICE & ORDER STATUS 1-541-689-3801 x2 CustomerService@JHBaxter.com

JHBaxter & Co. is WBE Certified AFFILIATIONS: AWPA • CAHM&PC • IOHH • PCCHM&PM • PWLA • WCLBMA • WCLIB • WWPI

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Black Capped Sliders MI Windows and Doors’ HomeMaker3 and EnergyCore 190 sliding glass door product lines are now available with the company’s black SuperCapSR co-extrusion exterior color technology. The line is a scratch-resistant, molecularly-fused color layer that reflects up to 76% of infrared light, helping to prevent heat build-up and frame distortion caused by high outdoor temperatures and extreme sun and UV exposure. n MIWINDOWS.COM (928) 772-7000 Building-Products.com

Do it Best refreshes spring market The 2018 Do it Best spring market in Indianapolis, In., featured a number of event enhancements, making an already valuable and rewarding experience even more so for the co-opâ&#x20AC;&#x2122;s LBM-focused member-owners. It began Friday May 18 with the LBM Industry Update, which once again brought members together over lunch to learn from Do it Best Corp. subject-matter experts about the latest forecasts and insights in lumber and building materials. Trends include the expectation for continued price

increases of lumber and other key building materialsâ&#x20AC;&#x201D;which can bring with it uncertainty for dealers, builders and remodelers. The learning opportunities extended into the evening with an LBM Reception, providing members an outstanding venue for networking to share best practices, connect with friends, and learn about special buys available exclusively at the market. The co-op also highlighted the success of its new LBM School, which brought nearly 60 dealers to its world

MARKET EXHIBITORS included [1] Big Timber Fasteners. [2] Deckorators decking and railing. [3] Superior Plastic Products railing and fencing. [4] Mr. Friendly, Jenni Tucker. [5] Rick Stout, Chuck Casey.

headquarters in March for an intensive, week-long learning and training program. Demand for the LBM School was so strong that Do it Best announced that it will be offered annually, beginning in the spring of 2019. Its fall market is set for Oct. 12-15, with the next spring market May 17-20, 2019. After that, most future spring markets will be moved up to the second weekend in February (except for 2021, when it momentarily returns to May, to accommodate the NBA All Star Game).

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10 [6] Bev Parish, Bill Merlock. [7] Scott Dunn, Jordan Engelhard. [8] Jeff Santella, Mason Bailey, Mark Brown. [9] Josh Worth, Josh Billian. [10] Tom Allen, Stacie & Daniel Fields. (More photos on next page) Building-Products.com

DO IT BEST SPRING MARKET

Photos by The Merchant Magazine

DO IT BEST (continued): [11] Adam & Holly Satterfield. [12] Tom Gifford, Chase Magee, Scott Barn. [13] Paul Vercher, Codi Beane, Josh Dickman. [14] Ron McClain, Ric Study, Jeff Martin. [15] Ken Ellerbrock, Larry Grooms, Matt Carney, Jeff Dahl, Mark Nelson. [16] Eric Mayfield, Jodi Nagy. [17] Stefanie Snyder, Rob Everson. [18] Dan Bogner, Chris Mehl, Randy Monahan, Curtis Stewart. [19] Tim Quanstrom, Cindy Building-Products.com

27 Chandler, David Lawson. [20] Francine Shanahan. [21] Paul Smith, Ted Morgan. [22] Chad Dunwiddie, Craig Kapp. [23] Brent Hodgkins, Steve Semmler, Greg Zabel, Rick Friesen, Renae Korell, Tammy Minnis, John Johnson, Norma Dagley, Mark Stevenson, Larry Dagley. [24] Kimberly Rogers. [25] Jennifer Miller, Taylor Lauderdale, Tammy Flippo. [26] Ted Honeycutt, Lynne Gravalle. [27] Paul Kinney, James Labelle. July 2018

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Charity wins at Gregson tourney

SOUTHERN CALIFORNIA Hoo-Hoo Club’s annual Don Gregson Memorial golf tournament on June 8 raised more than $9,000 for each of three charities—the Wounded Warriors Project, Home for Our Troops, and City of Hope. Eight Marines attended as special guests including [1] Tin Oo, Mike Joe, James Kanelos, Matthew Castel. [2] Wayne Carter, Mitch Callaway, Vic Leader, Kevin Witt. [3] John Assman, Ken Normington. [4] Rich Geary, Patrick Adams, Fernando Abundis. [5] Thomasyne Salazar, Steve Mitchell, Dan Lucero, Yogi O’Bannon. [6]

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Buck Byers, Al Reed, Gary Roffers, Hank Hornsveld. [7] Jeff Norihiro, Bart Weber. [8] John Seely, Sean Cummings. [9] Danny Sosa, Gavin Morris, Ryan Lauterborn, Eric Thompson. [10] Gustavo Vargas, Dave Fraser. [11] Danny Fraser, Teo Vazquez. [12] Steve Brown, Dwayne Kurkowski, Jeff Donahoo, Chris Skibba. [13] Bryan Callaway, Evan Wilken, Bob Mackay. [14] Joe Nasir, Tianna Roman. [15] Dave Ramos, Joe Vizenor, Mark Davis, Ed Russell. [16] Bill Young, Mike Garrity. [17] Mike Monaco, Jack Butler. (More photos on next 2 pages) Building-Products.com

29 SHOWING THEIR SUPPORT for a great cause at Los Serranos Golf Course, Chino, Ca. (continued from previous page): [18] Troy Baily, Terry Rasmussen, Scott Middaugh, Paul Corso. [19] Michael Ochoa, Oliver Barnes, Jason Croy. [20] Dave Anderson, Robert Assman. [21] Pat Dresch, Will Lone, Ed Nichols, Dave Gorham. [22] Larry Christensen, Ted Smith, Melanie Hindi, Jared Stamper. [23] Aleck Manke, Matt Manke, Jimmy Stephens, Scott Whitman. [24] Blake Building-Products.com

Photos by Merchant

GREGSON GOLF TOURNEY

30 Arrowhead, Jay Gregson, J.D. Wentworth, Guy Hargraves. [25] Todd Mumby, Joe Allotta, Bert McKee, Chris Freeman. [26] Gabe Delgado, Scott Fisher, Josh Sneckner, Daniel Farinella. [27] Vincent Arenas, Raquel Donahue, Aaron Serrano, Carlos Diaz. [28] Oscar Marin, Ron Hillman, Craig Larson, Todd Pollard. [29] Darrell Bustamante, Kenneth Hansen, Jim Nicodemus, Jesse Jackson. [30] Alan Arbiso, Marty Fox, Jim Gaither, Byron Grabinger. (More photos on next page) July 2018

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GREGSON GOLF TOURNEY Photos by Merchant

GREGSON GOLF tourney (continued from previous two pages) drew 165 players, including [31] Gary Van Dusen, Ken Van Dusen, Brett Gregson, Jim Gregson. [32] John Allen, Bill Ferguson, Russ Primrose, Joe McCormick. [33] Carlos Gonzalez, Mike Nicholson, Frank Huerta, Carlton Jennings. [34] Keith Hitchcock, John Lobez, Damien Simpson, Darryl Guzman. [35] John Dolan, Chad Butcher, Cory Johnson, Chris Koehler. [36] Javier Calderon, Will Fuelling, Dwight Miley, John Fuelling.

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[37] Rick Deen, Mike Carey, Micah Orr, Danny Andrea. [38] Jeff Green, Jeff Won. [39] Steve Sadler, Brad Seitz. [40] Ryan Burris, Shawn Knight, Pat McCumber, Thomasyne Salazar, Steve King. [41] David Rodriguez, Thomas Loft, Carl Suderman, Steve Olson. [42] Tim McCoy, Don Kavert, Greg Stout, Chip Barker. [43] Craig Crafton, Jonathan Shelton, Ed Miron, Fia Faumuina. Building-Products.com

ASSOCIATION Update West Coast Lumber & Building Material Association has drafted author and marketing guru Daniel Lemin to be a keynote speaker at its upcoming 2nd Growth Conference July 18-20 at Omni Rancho Las Palmas Resort & Spa, Rancho Mirage,

Ca. Lemin will touch on a range of modern marketing strategies, including how to harness the power of online feedback, such as Yelp! reviews. Members will also have a chance to get to know several vendors and the new products and services they are

UFP Business School Graduates First Class A new website for UFP Business School features students from the school’s first class who will be graduating in August 2018 and taking jobs with Universal Forest Products operations across North America. Visitors to UFPBusinessSchool. com will read about these students, the school they attend, the professionals who teach the courses and the opportunity that exists for graduates. “Being a part of the UFP team is incredible,” said Calvin C., a student featured on the site. “This is a great opportunity to get a head start in your career without a cost to you.” Calvin has accepted a job with Universal in Chandler, Az. UFP Business School is a twoyear program created and operated by Universal Forest Products. The curriculum is modeled after a four-year business degree program. Courses are taught by Universal professionals (for example, the CEO teaches entrepreneurship; the executive vice president of marketing teaches marketing; etc.). School is year-round. Students are in class 10 hours a week and in a paid internship 20 hours a week. For one term each year, they work at one of the Company’s North American operations. Those who graduate get first pick of available jobs. Best of all, there is no cost to the students; all attend on a full scholarship underwritten by the company. While students don’t have to commit to staying at Universal upon graduation, if the first class is any indication, they will. “We were challenged to find qualified people who were ready and able to get to work. At the same time, our CEO, Matt Missad, was considering viable options to costly, post-high school education opportunities,” said Lynn Afendoulis, director of corporate communication. “UFP Business School isn’t the easy option—it is rigorous and we demand much of the students,” she added, “but we open the door to a lot Building-Products.com

of opportunity for those who succeed. It’s exciting to see our first-ever students get jobs at our operations.” Students attend courses at Universal’s Grand Rapids, Mi., campus and online.

showcasing. Companies will be able to introduce themselves, their sales teams and share about their new products. The conference will conclude with a shotgun start golf tournament and awards ceremony. National Lumber & Building Material Dealers Association has opened up early bird registration for its ProDealer Industry Summit Oct. 17-19 at the Radisson Blue Aqua Hotel, Chicago, Il. Building Industry Association of Southern California is moving its annual Building Industry Show to the Pechanga Resort & Casino, Temecula, Ca., Oct. 4.

* ROUGH TIMBERS * UTILITY POLES * PRESSURE TREATED LUMBER * FIRE RETARDANT TREATED LUMBER AND PLYWOOD

July 2018

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IN Memoriam Darrell H. Schroeder, 95, retired CEO and president of Stimson Lumber, Portland, Or., died June 1. He began working in the lumber industry while still in high school, minding a gate for Mill City Manufacturing Co., a sawmill and logging firm in Mill City, Or., partly owned by his father and uncle. Over successive summers, he rose to trail builder, choker setter, and sawyer. After serving in the Army during

World War II, he returned to Oregon State University at Corvallis, working summers for Stimson Lumber, on the road crew at a logging camp near Forest Grove, Or. After receiving his degree in logging engineering in 1948, Schroeder was promoted to chief logging engineer. He rose to VP and general manager of subsidiary Rellim Redwood Co., Crescent City, Ca., in 1955 and of Miller Redwood Co. in 1964, and to president of the corporation in 1978. He retired in 1991, but remained on the

CLASSIFIED Marketplace Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets type), $65 if we set type. Send ad to Fax 714-486-2745 or david@building-products.com. Checks payable to 526 Media Group. Deadline: 18th of previous month. Questions? Call (714) 486-2735.

FACILITIES FOR SALE

board until 1996. He also served as president of California Forest Protection Association, California Redwood Association, and Redwood Inspection Service, and on the board of the World Forestry Center, which recently inducted him into its Leadership Hall. Ted F. Freres, 68, president of Freres Lumber Co., Lyons, Or., died June 3 following a year-long battle against pancreatic cancer. Ted spent 40 years with the 96-year-old family company and was elected its fourth president in 1992. Under his leadership, along with brother Bob and later nephew Rob, the firm expanded from two green veneer plants into a diverse producer of green and dry veneer, studs, residuals, electricity, plywood and Mass Plywood Panels. Steven J. “Steve” Kline, 70, Portland, Or., lumber wholesaler for 30 years, died June 4 in Chelan, Wa. Drafted by the New York Yankees after graduating from high school in 1966, he pitched for the Yanks, Indians and Braves before retiring from baseball in 1977 and becoming a lumber broker, including for Futter West.

New Pole Treatment OK’ed

LUMBER CARRIERS from Berkot • Several models available • Balanced for ease of handling • May be modified to your specifications See our full product line at www.BerkotMfg.com

BERKOT MFG. CO., INC. 12350 Montague St. Unit F, Pacoima, CA 91331 • Phone (818) 272-2000 Manufactured in the U.S. since 1954

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The U.S. EPA has approved the registration of a new oil-borne wood preservative system, UP-23, to be produced by Viance, Charlotte, N.C., to protect utility poles, cross arms, and transportation bridge timbers from decay fungi and subterranean termites. Based on the active ingredient DCOI, the formulation is a rigorously tested, environmentally-advanced preservation system that offers municipalities and utilities an alternative to preservative systems currently in use. Viance will brand UP-23 in the marketplace as UltraPoleTM NXT. “We are pleased to introduce UltraPole NXT, as it represents the next generation of industrial wood preservatives designed for the 21st century,” said John Hussa, president of Viance. “UltraPole NXT treated poles are backed by a 50-year warranty against termites and decay and offer the industry’s only warranty for an oilborne preservative.” The active ingredient, DCOI, used in UltraPole NXT is a major component of the marine antifouling paint, Sea-Nine, and an active ingredient in Ecolife treated wood products used in backyard projects. Building-Products.com

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

ADVERTISERS Index All-Coast Forest Products [www.all-coast.com]

APA [www.apawood.org]

Bear Forest Products [www.bearfp.com]

Los Angeles Hardwood Lumbermens Club – July 14, Duffy cruise, Newport Beach, Ca.; www.lahlc.net.

Berkot Manufacturing Co. [www.berkotmfg.com]

West Coast Lumber & Building Material Association – July 18-20, 2nd Growth summer conference, Omni Rancho Las Palmas, Rancho Mirage, Ca.; www.lumberassociation.org.

Capital Lumber [www.capital-lumber.com]

Colliers International [www.colliers.com]

Combilift [www.combilift.com]

CT Darnell Construction [www.ct-darnell.com]

Eco-Chemical [www.ecochemical.com]

Mountain States Lumber & Building Material Dealers Association – July 12, Colorado Front Range golf tournament, Greg Mastriona Golf Course & Hyland Hills, Westminster, Co.; www.mslbmda.org.

Interforst Trade Fair for Forestry Technology – July 18-22, Munich, Germany; www.interforst.de. Fresno Home Show – July 20-22, Fresno Fairgrounds, Fresno, Ca.; www.fresnoshows.com.

Fontana Wholesale Lumber [fontanawholesalelumber.com] 21

Western Building Material Association – July 24, mid-year meetings, Seattle, Wa.; www.wbma.org.

Gemini Forest Products [www.geminiforest.com]

Umpqua Valley Lumber Assn. – Aug. 1-3, annual banquet, golf tournament, and mill tours, Roseburg, Or.; leslies@cdlumber.com.

Grabber Construction Products [www.grabberpro.com]

Huff Lumber Co. [www.hufflumber.net]

Southern California Hoo-Hoo Club – Aug. 3, Ladies Weekend, Palm Springs, Ca.; www.hoohoo117.org.

Humboldt Redwood [www.getredwood.com]

Tacoma-Olympia Hoo-Hoo Club – Aug. 4, annual picnic, Gig Harbor, Wa.; (253) 531-1834; tbilski614@aol.com.

International Wood Products [www.iwpllc.com]

J.H. Baxter [www.jhbaxter.com]

Black Bart Hoo-Hoo Club – Aug. 10, Trap Shoot & Lunch, Ukiah, Ca.; www.hoohoo.org.

Jones Wholesale Lumber [www.joneswholesale.com] Cover III Keller Lumber

Ace Hardware Corp. – Aug. 15-18, fall market, McCormick Place, Chicago, Il.; www.myace.com.

Koppers Performance Chemicals [kopperspc.com]

World Conference on Timber Engineering – Aug. 20-23, Seoul, South Korea; www.wcte2018.kr.

Lonza Wood Protection [www.wolmanizedwood.com]

Matthews Marking Systems [www.matthewsmarking.com]

Lumbermens Merchandising Corp. – Aug. 22, LMC Hardware Express, Las Vegas, Nv.; www.lmc.net.

North American Wholesale Lumber Assn. [www.nawla.org]

International Woodworking Fair – Aug. 22-25, Georgia World Congress Center, Atlanta, Ga.; www.iwfatlanta.com.

Norbord [www.norbord.com]

Orgill [www.orgill.com]

OZCO Building Products [www.ozcobp.com]

Pacific Woodtech [www.pacificwoodtech.com]

Wood Products & Technology Fair – Aug. 28-31, Gothenburg, Sweden; www.swefair.se.

Parr Lumber [www.parrlumberchino.com]

Austrian International Wood Fair – Aug. 29-Sept. 1, Klagenfurt, Austria; www.kaerntnermessen.at.

Pelican Bay Forest Products [www.pelicanbayfp.com]

Redwood Empire [www.redwoodemp.com]

BC Wood – Sept. 6-8, Global Buyers Mission, Whistler Conference Centre, Whistler, B.C.; www.bcwood.com.

Roseburg Forest Products [www.roseburg.com]

The Hardware Conference – Sept. 7-9, JW Marriott, Marco Island, Fl.; www.thehardwareconference.com.

Royal Pacific

Seneca Sawmill [www.senecasawmill.com]

Simpson Strong-Tie [www.strongtie.com]

Orgill – Aug. 23-25, fall dealer market, Sands Expo & Convention Center, Las Vegas, Nv.; www.orgill.com.

American Wood Protection Association – Sept. 9-13, technical committee meetings, Marriott Copley Place, Boston, Ma.; www.awpa.com. North American Wholesale Lumber Association – Sept. 10-14, Wood Basics Course, Oregon State University, Corvallis, Or.; www.nawla.org. Western Hardwood Association – Sept. 12-14, annual convention, Arlington Club, Portland, Or.; www.westernhardwood.com. Tacoma-Olympia Hoo-Hoo Club – Sept. 19, meeting, Tacoma, Wa.; (253) 531-1834; tbilski614@aol.com. Composite Panel Association – Sept. 23-25, fall meeting, Nashville, Tn.; www.compositepanel.org. World Forestry Center – Sept. 25, Forest Products Forum in partnership with Forest Economic Advisors; Sept. 25-27, Who Will Own the Forests? timberland investing conference, World Forestry Center, Portland, Or.; www.wwotf.org. True Value Co. – Sept. 28-30, Fall Reunion market, Denver, Co.; www.truevaluecompany.com. Building-Products.com

Cover I

Siskiyou Forest Products [www.siskiyouforestproducts.com] 45 Sunbelt Racks [www.sunbelt-rack.com]

Superior Wood Treating [www.superiorwoodtreating.com]

Swanson Group Sales [www.swansongroupinc.com]

Thunderbolt Wood Treating [thunderboltwoodtreating.com] 48 TruWood [www.collinsco.com]

Cover II

Universal Forest Products [www.ufpedge.com]

Utah Wood Preserving [www.utahtreatedwood.com]

Versatex [www.versatex.com]

Viance [www.treatedwood.com]

Cover IV

Western Woods [www.westernwoods.biz]

Weyerhaeuser [www.weyerhaeuser.com]

Yakima Forest Products [www.yakamaforestproducts.com] 54 July 2018

The Merchant Magazine n

FLASHBack 60 Years Ago This Month

S ixty years ago, The California Lumber Merchant reported on a group of lumberwomen in Sacramento created the nation’s fifth Hoo-Hoo-Ette Club, starting with the induction of 11 “kittens.” Other clubs were active in Los Angeles (No. 1); Eugene, Or.; San Francisco; and San Diego. The Hoo-Hoo-Ettes faded away after Hoo-Hoo International began allowing female members in 1993. Hoo-Hoo’s executive secretary Beth Thomas became the first woman to be inducted that year and in 2014 was the first female elected Grand Snark of the Universe. The international club is currently headed by Robyn Beckett Young, Gutherie Lumber, Livonia, Mi. Other happenings in July of 1958: • The National Lumber Manufacturers Association honored actor George Montgomery as its first Woodmaster of the Year during the group’s annual meeting in Santa Barbara. Mongtomery, who had appeared

IN THE LATE 1950s, Plywall was originally the brand name of longdefunct Davidson-Western Plywood Co.’s prefinished plywood paneling. Today, Plywall is the copyrighted name of Hoover Treated Wood Products’ pre-engineered, ASTM tested, preservative treated wood noise barrier system.

in dozens of western films and was married to Dinah Shore, took time out from filming his new NBC-TV series Cimarron City to pick up the award—a large clock fabricated from several different hardwoods and softwoods. He was selected because of his achievements and skill as an architect, designer, furniture builder, and DIYer. He served as architect-builder on eight different homes, including his own, for which he made most of his own furniture. Unfortunately, his TV series lasted just one season, his movie offers began to dry up, and in 1963 he divorced Shore. He officially retired from show business in 1972 and died in 2000. • Covelo Lumber installed perhaps the industry’s first “footage calculator” at its mill in Ukiah, Ca. The brainchild of mill foreman Earl Clark, the machine was installed directly behind the trim saw, automatically stamping the length of each board on one end. He described it as akin to a pinball machine—each piece of lumber self-selected the correct stamp from 6 to 20 ft. in length by hitting a series of electronic trips as it made its way down the chain.

IN ADDITION to having lumber milling in his lineage and owning a stake in several lumber companies, crooner Bing Crosby also promoted building products, such as the latest ADCO door.

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• Lumber grading was finally coming to Southern California, after the California Lumber Inspection Service received approval to expand its service from San Jose all the way down to San Diego.

July 2018

CLIS now had permission to grade all species of lumber under Western Pine Association and California Redwood Association rules, per the Department of Building and Safety of Los Angeles and eight surrounding counties. The long-awaited service was expected to eliminate long delays for on-the-job inspections. • Crenshaw Lumber Co., Hawthorne, Ca., headed by Lloyd Olson, purchased Gardena Lumber Co., from Dick Learned and Charlie Smith, and Learned bought out partner Smith’s interest in Learned Lumber, Hermosa Beach, Ca. Both lumberyards continue to this day and, in fact, the Gardena location has become Crenshaw’s headquarters. • The National-American Wholesale Lumber Association held its 66th annual meeting at The Broadmoor in Colorado Springs, Co. John J. Mulrooney, H.M. Bickford Co., New York, was selected as the new treasurer, beginning his ascension up the ranks of NAWLA leadership. In 1960, he would leave his successful wholesale business to become NAWLA’s chief of staff executive. After he unexpectedly passed in 1979, NAWLA created the John J. Mulrooney Award, honoring significant contributors to the association from 1980 to 2010. The award will once again be presented at this year’s Traders Market.

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