Merchant Magazine May 2015 by 526 Media Group

HOTTEST DECK TRENDS  HISTORICAL MILLWORK  NAWLA SPECIAL ISSUE

The

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MAY 2015

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 Volume 93  Number 11

MERCHANT

Magazine

The

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www.building-products.com

A publication of 526 Media Group, Inc.

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

President/Publisher Patrick Adams padams@building-products.com Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus David Cutler Alan Oakes Editor/Production Manager David Koenig david@building-products.com Associate Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen

Special Features

In Every Issue

9 INDUSTRY TRENDS

MILLENIALS START BUYING HOMES

10 INDUSTRY TRENDS

HOT DESIGNER DECK TRENDS

12 MARGIN BUILDERS

EASY ADD-ONS TO DECKING SALES

14 PRODUCT SPOTLIGHT

WHAT’S UP IN FENCING

16 FEATURE STORY

HISTORICAL MILLWORK HONORS LINCOLN ANNIVERSARY

36 SPECIAL FOCUS: NAWLA

24-PAGE SPECIAL SECTION: • FORECASTS • TRENDS • TOOLS FOR YOUR BUSINESS • CONFERENCE RECAP

68 PHOTO RECAP: SOCAL GOLF CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 by 526 Media Group, Inc. Periodicals Postage paid at Newport Beach, CA, and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2015 by 526 Media Group, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

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6 ACROSS THE BOARD 7 TALK BACK 18 COMPETITIVE INTELLIGENCE 20 OLSEN ON SALES 28 FAMILY BUSINESS 34 MOVERS & SHAKERS 35 APP WATCH 60 KAHLE ON SALES 63 NEW PRODUCTS 71 ASSOCIATION UPDATE 72 IN MEMORIAM 72 CLASSIFIED MARKETPLACE 73 DATE BOOK 73 ADVERTISERS INDEX 74 FLASHBACK

May 2015

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

Advertising Sales Manager Chuck Casey chuck@building-products.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

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

How to Subscribe

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ACROSS the Board By Patrick Adams

What am I trying to reinforce?

T’S ONE OF those late afternoons that we all pause for when they happen. The sun is shining, there is a gentle ocean breeze and not a cloud in the sky. I’m driving along, all the windows are down, and the stereo is turned up louder than it should be for a guy my age. It’s truly a “perfect” afternoon… that is shattered by flashing lights in my rear view mirror. I might have heard a siren, too, if the stereo was not so loud! During the slow motion, Hollywood-style walk up to my car, I’m thinking of how I will handle this situation. Maybe he pulled me over to ask for directions or to compliment me on my choice of music? After the obligatory quiz show of “Do you know why I pulled you over?,” it turns out that I’m speeding by 8 mph over the posted limit just a few blocks from my house. I’m no saint, but I would like to think that I take pride in my country, look out for others, and when I see someone in need I help without pause. I don’t keep a tally, but I can’t count how many times I have helped in an accident before authorities arrived, stuck up for someone being bullied, or saved a stranger from something bad. What I was thinking was why the Department of Motor Vehicles only keeps track of our mistakes? Shouldn’t that also be balanced against every time we go out of our way to do something good? Doesn’t that extra effort matter, too? Don’t they want more of that to happen? We’ve all been in this situation, and it takes me back to my adolescence. Boy, some of the stories I threw out when I was in trouble makes me wonder why I didn’t become a fiction writer! Instead what I thought of was my 4-year-old. Right now, she’s just old enough that I always think, “What message am I sending and what am I reinforcing?” to help shape her behavior and make her the upstanding citizen that I hope she will become. What about my team at the office or my customers? What message am I sending in my actions? It made me think about the situation I was facing and what this officer was trying to reinforce (I know, at this point I can hear what all of you are saying!). I’m in the “I’ll be right back so that I can find out if you’re a fugitive” stage of our encounter and I’m thinking about our industry and business. You have all built your businesses on

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relationships and going the extra mile. When one of your customers (or even competitors) needed help, you offered it; not with conditions or a contract, but because it was the right thing to do. There was no debt owed and no Godfather-style “you owe me” that would be called in at midnight when there was something to be disposed of! Why do we all do that? It costs us more and there is no way to expect a return on that investment and yet, I think the majority of us spend our time looking for ways to help with no expectation of getting something in return. It strikes me that this is what I can share with my 4-year-old; that we do it because it’s the right thing to do and in the end, aren’t we all here to help each other? I hope that technology, “progress” and all the other things we try to measure ourselves with don’t make us so jaded that we forget this! After the officer walked back up, I simply said, “Isn’t this one of the greatest afternoons ever? I mean really, could it get any more perfect?” He looked at me and saw I was grinning ear to ear. The music was still on quietly and all my windows were still open. He smiled a bit behind those reflective sunglasses and simply said, “Mr. Adams, you’ve made my day. I wish everyone I pulled over understood that I’m just trying to help our community stay safe. Watch your speed and have a great day.” Maybe my driving record only records the negative points. But, I’m glad that I’m working in an industry full of people who measure their success by things other than the spreadsheet. Never hesitate to reach out, share your stories or let us know how we may serve you better! Happy Spring!

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

Building-Products.com

TALK Back We welcome your opinions on articles and the magazine in general. Please send your comments to letters@ building-products.com, Fax 714-4862745, or The Merchant, 151 Kalmus Dr., Ste. D200, Costa Mesa, Ca. 92626.

GETTING PERSONAL Patrick, I enjoyed your article “It’s Not Business… It’s Personal” (March, page 6). I agree. I wake up every business day with the awareness that we must be successful and operate at profit, yet the main motivator in my business life is the personal side of our company, business and industry. Putting people first is our goal at McCoy’s. Congratulations on your new venture.

business, but I feel it is my store as much as theirs. I want it to succeed and prosper just as the owners do. That being said, the CEO that you had the meeting with, I feel, was totally out of touch with the most important asset, a dedicated caring work force. He should have rewarded you and your team and presented you all to the shareholders with the prospect of an even more profitable year to come. The bottom line is, why should I work for someone with that “it’s only business” attitude? I surely wouldn’t put my heart into being productive for a company like that.

In closing, I should also tell you my boss rewards his employees with a fall and Christmas bonus, along with many other showings of kindness and truly does care about our wellbeing. He and his wife go above and beyond helping and caring for us. They are absolutely amazing people who I am very fortunate to be able to work for and with. I do my best to thank them by giving them the best of my ability and skill in running this lumber/hardware store. Skip Tuey Valley Lumber & Millwork Ferndale, Ca.

Brian F. McCoy McCoy’s Building Supply San Marcos, Tx. I really liked the “Across the Board” comments this month, so much so I was moved to write you. I work in a small mom and pop store in Ferndale, Ca., population about 2,000. I have worked for the owner and his wife for 27 years and could not be more blessed in knowing them. My point is this company is a family, lots of dynamics, trust, confusion, and—I really believe—love for the people we serve, each other, and our store. Yes, our store. It’s their

24-page NAWLA Special Section • FORECASTS • TRENDS • TOOLS FOR YOUR BUSINESS

Starts on Page 36 Building-Products.com

May 2015

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INDUSTRY Trends By Stephanie Ornelas

Millennials’ home buying on the rise

S THE OLDER TIER of Generation Y, otherwise known as Millennials, enter into their late 20s and early 30s, a shift is beginning to progress towards home buying. What was once a generation that preferred the urban lifestyle, shying away from homeownership and more towards renting, Millennials are now beginning to enter the home buying market in large numbers, as rent continues to rise across the U.S. For the second year in a row, Millennials represent the biggest group of home buyers in America. According to a March 2015 report from the National Association of Realtors, Millennials made up 32% of the U.S. housing market. With an improving economy, this number is expected to go up in the coming years, which is why it’s important for those in the housing industry to acknowledge the various characteristics of Millennials and how this will affect the building industry. With a rise in Millennial home buying, there are certain matters that should be taken into consideration when bearing in mind this type of homebuyer. For example, student loan debt is continuing to rise. The average amount of student loan debt rose for the class of 2013, approaching nearly $30,000, according to a report from the Institute for College Access and Success. Having said that, Millennials will typically be more conservative when purchasing. They are not the ones buying large mansions in the suburbs that will take longer to pay off, but rather smaller single-family homes and condos, viewing their home as an investment property, while also increasing their credit score and credibility with the bank.

Building-Products.com

At this year’s International Builders’ Show, panelists during an IBS conference on home trends and Millennials' home preferences gave an industry forecast for the building industry. NAHB assistant vice president of research Rose Quint predicted that the growing numbers of first-time homebuyers will drive down home size in 2015. Quint explained as younger, first-time buyers come into the market, they will demand smaller, more affordable homes. The panelists also unveiled the results of two surveys, one asking Millennials what features are most likely to affect their home buying decisions. When asked, 55% responded saying a separate laundry room was crucial. Storage is also important, with linen closets, a walk-in pantry and garage storage making the top 10 features, along with Energy Star features. As green building has been the

center of debate lately, it’s important to take note the majority of millennials will pay 2% to 3% more for energy efficiency as long as they can see a return on their power bills, the survey says. According to the National Association of Homebuilders, Millennials emphasize the importance of outdoor living, therefore a demand for outdoor products such as pergolas, pavilions, and easy-to-install decking is to be expected. Home technology will also continue to become increasingly dominant as Millennials seek ways to control their household systems from their phones and tablets. With an improving economy and a world of evolving innovations, the number of Millennial homebuyers will continue to rise and it’s important to bear in mind the trends that will evolve from this growth.

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INDUSTRY Trends Trends in Decking

3 hot designer trends for well dressed decks

PRING HAS ARRIVED ,

but are your customers’ decks ready for “primetime?” Or are they still wearing the shabby remnants of last season’s look? Clunky, view-blocking railings, a rectangular layout, and dark stain are so last decade. Before warm weather gets here, consider upgrading your outdoor living space with the trends that every well-dressed deck will be wearing this year.

Cable Railing = Better Views

Homeowners lucky enough to live on the water or who spend a lot of time keeping their backyards green and blooming would love to be able to enjoy the view from their decks. Traditional wooden railings can block

their view, and glass can be expensive and hard to clean. More view-seeking homeowners are replacing wooden balusters with steel cable railings. Do-it-yourself kits from manufacturers like The Cable Connection, Feeney and AGS Stainless make it easy to replace old balusters with stainless steel cable, creating a sleek, upscale and viewfriendly look. The cable can be used with wood, metal or sleeved posts with a solid core, and any railing can be retrofitted with the cable. Whether the deck is made of wood or composite, cable railing works wherever one would install a traditional railing, including the deck perimeter and stairs.

A Deck of a Different Color

Clear sealant for a natural look or subdued rustic hues have long been the colors of choice for decks. This year, expect to see a plethora of fresh colors popping up on decks. While changing the color of a wooden deck from a darker hue to something brighter may be problematic, composite decking manufacturers have branched out into a variety of brighter colors, including whites and light grays. You’ll even see pops of color like greens and blues in designs and inserts set into decking planks. Color can also be added to a deck through plantings. Think outside the planter box—and traditional floral plantings—to mix things up with decorative grasses and leafy foliage that will splash color around a deck throughout the summer.

Mixed Media Ups Interest

CABLE RAILING is ideal for use with nice views, because it virtually disappears and is more affordable than glass. (Photo by Feeney)

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Wooden planks, wooden railings, stairs and even furniture—long gone are the days when decks were singlematerial constructions. Today’s decks are a study in mixed media, incorporating traditional materials like wood, brick and tile with modern elements such as composite planks and even ceramic tile. The amalgam of materials can yield a multitude of patterns, styles and looks. Pair a traditional wood deck with cable railing and stairs that descend to a patio of pavers set in a herringbone pattern. Use heat-resistant ceramic tile to create a decorative and functional cooking area on a composite deck. Varying the materials used in a deck adds visual depth, interest and excitement to an outdoor living space. Building-Products.com

MARGIN Builders By Brent Gwatney, MoistureShield

Would you like lights with that?

Selling the integrated decking package A FTER ONE of the coldest winters in recent memory, American building material dealers and builders can look forward to a strong decking season in 2015. The Old Farmer’s Almanac forecasts normal to hotterthan-normal temperatures in 15 of 16 U.S. regions, and normal rainfall or drier conditions in 12 regions. Hot, dry weather bodes well for more homeowners wanting to enhance their outdoor living areas. Dealers and builders are preparing for this demand by offering a simplified buying process. To maximize the sell price of each job, more dealers are stocking decking materials that are designed to work together, such as complementary railings, deck lights, and fasteners. The goal is to make it easy for builders and homeowners to find all of their outdoor living products in one place.

increasingly choose decks made from alternative lumber because it has greater resistance to degradation by moisture, changes in humidity, insect attack, or time, and because it requires minimal maintenance over its long service life.” The firm predicts that U.S. demand for composite and plastic lumber will increase nearly 10% per year through 2018. They also note that for decking, “composite is increasingly preferred to plastic lumber,” mostly because com-

posites better resemble the look and texture of traditional wood and include recycled materials, appealing to greenconscious homeowners.

Hidden Fasteners

Deck clips are increasingly popular with both homeowners and builders. Homeowners like the clean, smooth surface provided by hidden fasteners, and clips that can be used with guns install three to four times faster than surface fasteners. It’s a win-win for

2015 Decking Market, In Brief

Further supporting a strong outlook for decking demand this spring and summer, nearly 98% of landscape architects rate terraces/patios/decks as the most popular category of outdoor structures among homeowners, per a survey by the American Society of Landscape Architects (ASLA). So, among the scores of decking products you can stock, which ones will perform best this year? Popular product lines to consider are:

Composite Decking

According to market researchers at the Freedonia Group, “Consumers will

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OUTDOOR LIVING continues to grow in popularity throughout the U.S., leading to new options and more innovative decking styles. (Photos courtesy MoistureShield)

May 2015

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builders: they reduce labor time while providing customers with a more attractive deck.

Deck Lighting

In the ASLA survey of outdoor living trends, 98% of landscape architects ranked lighting number one among 18 different outdoor living features requested by homeowners. Outdoor lighting even came out ahead of other perennial favorites like grills and outdoor furniture. While well-stocked grilling and furniture departments will remain crucial for dealers, 2015 is a good year to offer a healthy range of lighting options, as well. These can include landscape spotlights, Malibu lights, wall sconces, built-in deck lights, post caps, inset lights for stairs, and strip lighting that can be hidden under the top rail.

Specialty Railing

Homeowners demand railing that is attractive and not just functional. More builders are creating decks with non-

HIDDEN FASTENERS not only create a screw-free surface, they can also be installed up to four times faster when used with pneumatic fas-

traditional balusters, such as shaped metal or wrought iron, or tempered glass panels for an out-of-the-ordinary look. Powder-coated aluminum railing systems also are available in a wide range of sophisticated styles to complement the sleek, modern designs of composite decking.

All Together Now! Selling the Integrated Decking Package

To save builders the hassle of sorting through unrelated decking products to find the ones that fit their needs, decking manufacturers now offer full families of products–deck clips, railing, lighting, and more. Products that are specifically designed to work together provide the added benefits of a cohesive look and peace of mind that the products will perform as well as the decking itself. For example, MoistureShield aligns the warranties on all of its complementary deck products with its decking warranties in order to create a package of consistent options that streamline the selection process.

LIGHT UP DECKING is a growing trend, as lighting is a highly-ranked outdoor living feature among homeowners, according to the American Society of Landscape Architects.

Building-Products.com

– Brent Gwatney is senior VP sales and marketing for MoistureShield composite decking, and serves on the North American Deck and Railing Association board of directors. Contact him at bgwatney@ moistureshield.com

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PRODUCT Spotlight By Kevin Flanagan, Ply Gem

Fencing adds dimension, design to outdoor living

is big business in any industry, but for LBM dealers, it opens up a world of opportunity. According to the U.S. Census Bureau, $50 billion is how much consumers spent last year on remodeling the outside of the home. Specifically, the category of outdoor living is expected to experience continued growth and has created a demand for defining the backyard. Soon, we won’t be looking at outdoor living as a “trend” or “movement,” but rather as a staple of the American home. To stay on trend and increase your profit margins as a dealer or distributor, it’s important to know which products your pro customers will be asking for in the next year. The industry doesn’t have a crystal ball, but experts are well aware of what trends to expect to help guide your business. American Society of Landscape Architects’ 2015 Residential Landscape Architecture Trends Survey cites pergolas, decks and fencing as IFTY BILLION DOLLARS

three top outdoor structures. With homeowners putting priority on privacy and protection for their most valuable assets, it’s no surprise that fencing is anticipated to be in high demand. For example, solid, vinyl privacy fences are still the number one style for Ply Gem’s customers, but the options don’t end there. From privacy to picket, to ranch rail, there are as many choices as there are home styles. Color is a major trend in the industry, as well. Our sales team has noticed that white is declining and the demand for color is rising. There has been an upswing in requests for variegated colors, which offer the look of natural stained wood without the messy maintenance. Years ago, manufacturers were unable to produce darker colors that met the stringent performance requirements in the field. Thanks to continuous research and development of new technologies, the industry is now able to achieve more diverse designs

OUTDOOR TRENDS are rapidly evolving, leading to a demand for more outside living products that are efficient and east to install. (Photo: Ply Gem Express Boxed PVC Railing)

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through a co-extrusion process that combines a sturdy inner substrate with a weather and fade resistant capstock on the outside. The capstock layer is produced from acrylic polymers that hold color and reflect ultraviolet and infrared light to increase the lifespan of the vinyl fencing. We’re also seeing customers add more dimension to their home designs, beyond standard fencing. Variegated and decorative fence post caps are on the market to complement the look of vinyl fencing products. Variegated post caps model the look of real wood, adding a clean finish to the fence. The decorative caps can add elegance and color, enhancing the customization of an installation. Additionally, easy-to-install architectural elements—such as stackable stone columns—are great as accents or stand-alone features that save time and money. These columns look just like quarried stone, but allow for quicker installation by builders and contractors. With no mortar or special skills required, the pre-formed pieces easily set in place by simply stacking one on top of the other. With builders and contractors often asking for new ideas to add value for their customer, innovative design is key to success. Vinyl fencing and railing has come a long way since the introduction of PVC and continues to evolve as a beautiful, durable, sustainable and low maintenance product. With the popularity of outdoor spaces growing, dealers who are in-tune with industry demands will fare well in offering on-trend outdoor designs and features that will boost net profits. – Kevin Flanagan is national sales manager for Fence & Railing at Ply Gem. Reach him via plygem.com Building-Products.com

FEATURE Story By David Koenig

Millwork specialist remakes history

STORIED MILLWORK company in Northern California has carved its niche by building authentic architectural reproductions and by helping to rebuild lives. Its latest project, a recreation of Abraham Lincoln’s hearse that was featured this month during a sequicentennial reenactment, accomplished both. Blue Ox Millworks, Eureka, Ca., was launched as a logging company in 1973 by Eric Hollenbeck and three partners, who borrowed $300 to purchase a used chainsaw, a set of chokers, half a tank of gas, and a little blue truck. As recession hit and other area

mills began to close, Hollenbeck expanded into manufacturing, initially specializing in prefabricated sheds and fence posts. He also began salvaging the antique equipment of the mills that closed, to construct his own Victorian era mill, both to preserve the art for future generations and to cut up his logs. Adding a 1905 Orton singlesided planer allowed him to mill quality finished lumber and eventually began specializing in historic recreations and other custom millwork. In time, as more old tools and machinery were added, Hollenbeck looked for more ways to showcase

MILLWORK SPECIALIST introduced a school for returning veterans, whose first project was recreating President Lincoln’s processional hearse.

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them. In 1991, Blue Ox opened its doors to tours and eventually grew to show off other trades of the Victorian era, including blacksmithing, ceramics, plaster and printing. They later added workshops for groups to learn how to work the trades and Craftsman’s Days for craftsmen from around the world to show off their wares in a festival setting. Blue Ox began hosting area students in 1989 by partnering with the Humboldt Office of Education. Ten years later, a full-time high school was added, where at-risk students could spend three days a week in a regular classroom setting and the other two days at the Ox, learning millworking, carpentry or cabinet making. After four to six years, they graduate with a regular high school diploma and a valuable trade. As a Vietnam veteran himself, Hollenbeck had worked for years to also add a school for returning veterans. He figured that providing opportunities for meaningful, hands-on craftsmanship could reintegrate and revive members of the military, helping them develop a new self-identity. Unfortunately, he could not get the necessary approvals—until he was contacted by Jack Feathers, a fellow veteran and hearse craftsman in Tombstone, Az., who had agreed to recreate the historic transport for a special event May 1-3, 2015, in Springfield, Il., to honor the 150th anniversary of Lincoln’s cross-country funeral procession. Feathers quickly realized the project was too big for him and found Blue Ox in an online search. “Two Building-Products.com

LNCOLN’S HEARSE was destroyed by fire in 1887, so Blue Ox used the one extanct photograph to reverse-engineer a replica.

things,” Feathers cautioned Hollenbeck. “First off, it can’t be done and, second, there’s no money in it.” Hollenbeck, though, figured the project might be high-profile enough to get his veterans’ school approved. He had his okay within a week. While Feathers built the underframe in Arizona and another veteran, Jay Jones, made the wheels, axles and spring in Kentucky, Hollenbeck recruited 12 veterans, primarily from Iraq and Afghanistan for his inaugural Blue Ox Veterans School. Paid by the GI Bill, they spent nine months building the wooden frame, chamber and ornamentation. “The frame we built out of 2x and 3x Douglas fir,” Hollenbeck says. “I used Douglas fir, because it’s the athlete of the softwood industry, strong and tough. The vehicle is really big and really heavy. It weighs 3,000 to 3,500 lbs. and measures, tip to tip, about 18-1/2 ft. long. With the six horses, it extends 57 feet. “It was way overbuilt. This is not a carriage. The wheels are 3” wide. The hubs are hickory, 10” in diameter, and weigh 45 lbs. each.” Blue Ox recreated original molds for all the decorative details, which were cast in aluminum, then gold and Building-Products.com

silver leafed. “The patterns, including the arches in the windows, are built of redwood, because it’s the most stable wood on the planet,” he notes. The exterior was skinned with 1/4” maple. “We had no way of knowing what the original veneer was,” Hollenbeck says. “We chose maple,

because it sands up so nicely and takes a nice, bright finish.” The entire project was built off of a single photograph. “The vehicle didn’t originate in Springfield,” Hollenbeck explains. “They didn’t have time to build one. The mayor of St. Louis contacted the mayor of Springfield and said they had the fanciest hearse in the country. They loaded it on a train, and the bill of lading mentioned an oversize charge for 56” diameter wheels. So we scaled everything from there.” The project ended up costing close to $40,000. But several veterans who participated received something greater: a sense of peace and healing. Shared Andrew Olufsen: “My children’s children will be able to see this hearse and say, ‘My daddy worked on this.’” A highlight is expected to be early this month, when Hollenbeck and all the participating veterans are flown to Springfield, expenses-paid, to be part of the festivities. “They will be honored as craftsmen, that will be the biggest healing,” Hollenbeck says. And the veterans school will continue. He next hopes to put the veterans to work restoring two century-old horsedrawn Omnibus streetcars that will be put into service on San Francisco’s Fisherman’s Wharf route. He figures his biggest challenge will be continuing to find projects that don’t seem like a let down. “After all,” he says, “we started by climbing Mount Everest.”

BLUE OX’S finished frame and chamber were shipped to Arizona, where the undercarriage, wheels and other parts would be added, before final shipment to Springfield, Il. May 2015

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COMPETITIVE Intelligence By Carla Waldemar

Bigger is bigger— and better

EOGRAPHY LESSON:

Hartville (pop. 3,000) is a pinprick on the map of Ohio. Marketing lesson: Nearly that many people fit into Hartville Hardware & Lumber, the largest hardware store in the country. On a busy summer Saturday, co-owner Howard Miller, Jr. reports that crowds from five states descend on the seven-acre site, spilling over into its restaurant, gift shop, and flea market operations, as well. Things have changed (“exploded” might be more accurate) since Howard at age 19 took over the store his dad just purchased when the former owner retired. But blame the kid’s future focus on dinner: “I grew up in the restaurant business and, as a teenager, hated working all those nights.” So when his father, in 1972, wondered if his son would like to run the new acquisition, Howard took off for the home of his fiancée and a long night’s discussion. The next morning, he found himself boss of three employees on the small, 5,000-sq. ft. site. Not small for long. Two years into the business, already more space was needed. That enlargement scenario happened over—and over and over—on the 200 acres the fam-

EXECUTIVE TEAM: President Howard Miller (left) and VP Wayne Miller have overseen the explosive growth of Ohio’s Hartville Hardware.

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May 2015

ily had purchased in 1980. The latest expansion, with a grand opening in 2011, might have been fed by a recipe from Alice in Wonderland in that family restaurant. “Eat Me” and, well, you proceed to build the biggest hardware store in the country. The latest and greatest Hartville Hardware & Lumber features 305,000 sq. ft. stretching over those seven acres, including three new drive-thru lanes that contractors adore. Wisely, planning started long before that. “Twelve of us,” reports Howard, “visited 10 other stores around the country to learn their good ideas,” such as the cash register workings of an Oregon operation, the power hardware core at a Texas yard, and how things worked at Star Lumber. “We asked our employees and our customers for input, and we learned a lot by doing that. A lot! Our working philosophy is ‘All of us are smarter than any one of us,’ so we were looking for ideas. We gave every department manager the freedom to look at his department with his staff.” Same deal for Hartville’s vendors. Hartville tossed them the gantlet with “You tell us what you want to put in. Design your own area!” And they stepped up the plate. In fact, Howard has to laugh,“ There was active competition in the tool area,” such as the innovative touch screens installed for Hillman fasteners: “real exciting!” An actual log cabin of the 1860s was brought in and reassembled to hold the woodworking section of the tool department, showcasing Festool’s line. Howard himself was the lead advocate for natural light. Result: 72 skylights with sensors activating on/off fluorescent fixtures. “It saves some electricity,” he explains, but even better, “the natural light makes people feel better, and I wanted that warm ambience. Now, so many people comment on the warmth. Plus, we painted the ceiling brown— unique!—for another warm feeling.” By popular request—resulting in the most popular new feature—the store now boasts multiple entrances, unlike the ungainly boxes. “People can park close to the entrance that leads to the department they need, and they love it,” Howard says. A signature feature of the new showroom comes from an aha! moment while touring a Home & Garden show. It featured a complete house within the arena and, to Howard’s surprise, a line-up to walk through it. One look at that line and, “Man! That’s it! We’ve got to have one!” So the 1,800 sq. ft. Idea House is now a central focus of the store and has become a drive-destination in itself. Not only does it Building-Products.com

FULL-SIZE Idea House is a packed, 1,800-sq. ft. demo home right in the middle of the store—and among its most popular attractions.

enable customers to explore how everything from cabinetry to flooring looks and works in real time, but they’ve fallen in love with the home itself. “People love the design and want to build it; we’ve had to have drawings made.” Thinking the novelty would subside in a few years, plans were to phase it out. Well, that’s changed. New thinking is to replace it with another house every three to five years, covering it with a tarp while under construction to create excitement before the unveiling. (At the rear of the Design Center rises The Row House, facades of four architectural styles popular in Northeast Ohio, holding Kitchen & Bath showrooms within.) Otherwise, the store’s original layout and product assortment have worked well from the get-go. “We haven’t had to change much,” Howard observes. “And almost everything we have today, we had in the old center—but expanded it, merchandised it better—especially the appliances and flooring.” Farm and pet departments are bigger, too, creating close to one-stop shopping. “Do the basement, and we’ll take it from there,” he promises. (A peek at products listed on the website threatens to wear out your computer’s scrolling device before you reach the end of the 75,000 SKUs.) Free delivery of appliances and on contractors’ orders, too, all handled by the store’s 238 employees (560, counting non-building center operations). And they’re loyal. Vets of 15 years are common, “because we treat them right. Like family. My brother and I walk the floor with them. They care; we care—not like ‘corporate.’ They’re our biggest asset. And they’re specialized; that’s what makes us good. The paint people do paint. They know what they’re talking about.” Yet Howard has come to realize that cross-training can be a plus, and he plans to undertake that step, come winter. Never mind several boxes within a 10-mile radius striving for their business. Folks flock here for that superior service (plus a price-match guarantee). And who are these customers? “That’s definitely changed,” Howard notes, pointing to the recession. “Before the downturn, we had lots of tract builders, for whom we’d do trim packages. Now, it’s lots of remodelers. And we have special resources for our pros, like rebates, special pricing, and staff to go to so they don’t have to walk the floor (which they hate).” Coming Building-Products.com

up: Contractors’ Night, with a meal for 500 in the restaurant, vendors sponsoring booths, and give-aways and dessert on the floor—“a fun time,” says Howard, who adds that it’s become so popular that more people plead for an invitation than they have room to hold. Retail customers are treated to their own line-up of events, like the tool sale (“a big deal. Just packed!”), a Home & Garden Expo, Christmas Open House, and Ladies’ Night. To market these, Hartville relies on email blasts, Facebook and Twitter. “Our new emphasis will be on ecommerce,” Howard stresses, “especially for woodworking tools. No more mail-order catalogs; now, everything’s online, a much bigger deal.” And now to the elephant in the room: Who in his right mind would undertake the expansion of the millennium amidst the Great Recession? Take a moment to tsk-tsk about lousy timing. Or is it? “Just when we were ready to do it, the downturn hit,” Howard recalls. “We stepped back and said, ‘Man! Maybe not….’ But interest rates were down, labor costs were down, steel was down… ‘This is the time! When things bounce back, we’ll be ready.’ So we worked all winter long. We told the concrete contractors, ‘C’mon over, anyone who wants to work.’” “By the way,” he adds, “back when we did our first expansion, in 1974, there was a slowdown then, too, the same conditions. But we had eight crews, laying block.” What’s next? Thirteen members of the next generation are employed at Hartville Hardware (18 counting the other operations). “We’ve met every Tuesday morning since 1980. But we need a strategic plan; we’ve never had one,” Howard notes a shortcoming he’s about to remedy. “Plus, we just bought 38 acres across the street.” OMG, what’s next? Biggest on the whole darn globe? Keep tuned. Carla Waldemar cwaldemar@comcast.net May 2015

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OLSEN On Sales By James Olsen

Second class citizen

DIXON and Brent Adamson, authors of The Challenger Sale, cite a study by the Bay Group, which says that 75% of buyers think the sales rep has more power, while 75% of sellers think that the buyer has more power. What does that mean for us as sellers? Our answer can be found in Pareto’s Principle. Eighty percent of the sales made in any market will be made by 20% of the salespeople! What are the top 20% doing differently than the bottom 80%? They are speaking with confidence. They are speaking as partners. Their calls have purpose. ATTHEW

Underperforming sellers make themselves Second Class Citizens on every call. What frustrates them is that in many ways the harder they work (the more calls they make), the harder they work against themselves.

Second Class Citizen Symptoms & Cures

Always call with a (business) purpose. Second Class Citizens often lead with, “So… what are you needing today?” Do not do this! Master sellers call with an offering, something to sell, every time. Even if their original purpose is to give some sort of service, they always have a product or promotion for their customer. Always busy. Second class citizens have weak answers to initial greetings: “Fair to middlin’,” “They haven’t fired me yet” (yes, I heard it last week!), “Okay,” “Fine,” “It’s tough out there,” “The market’s impossible right now,” and other weak openings. First Class Citizens are always up, always busy selling. Until you come up with a better answer to “How are you?,” use “I’m great, selling the heck out of it!”—with gusto! You will know you are sounding like a First Class Citizen when someone says to you, “Wow, you’re always so up.” Second Class Citizens ask, “So… what do you think of that price?” instead of “What’s your order number?” First Class Citizens give the price and ask for the order.

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Second Class Citizens present product and wait for the customer to decide. This is not sales. This is product presentation. A price list or the internet can beat us (humans) at product presentation, but they cannot beat us at sales. When we give the number – ask for the order. Um, And-um, Ya Know, Good-good, and other verbal tics. Silence is A+; verbal tics of any kind are Z-. (We would give them a lower grade, but Z- is the lowest available). Verbal tics kill expertise and rapport. They make us immediate Second Class Citizens. They SHOUT that we feel we are intruding. They SHOUT that we are unsure and MAKE our potential customer unsure. Extra words, fillers, are just as bad as verbal tics. Actually is an example of a word that is added to sentences by Second Class Citizens. “Good morning. John. I actually called you today to offer you…” or “We are actually selling well today.” Master sellers are clear and simple with their communication; they say what they mean and mean what they say. Price is just another detail. Second Class Citizens are nervous about price. They often cough before giving the price. Their tone tightens and their speech becomes rapid. This immediately makes the customer tense up also—not good for getting to yes. The First Class Citizen treats “The Price” just like any other detail. They are relaxed when talking about price, and so are their customers. Second Class Citizens don’t ask for the order, don’t ask for it enough, and when they do ask they don’t sound as if they expect the customer to say yes. First Class Sellers make asking for the business part and parcel of the relationship they have with all their customers and potential customers. Master sellers are positively certain their audience will say yes to them. First Class Sellers are not arrogant, but they expect to win the business. They are just as realistic as the Second Class Citizen; they just have a cheerful “willful denial” of missing orders. They continue to stay positive and ask for the business in the face of any rejection or market conditions. We are the only ones who can grant ourselves First Class Citizenship. Let’s start selling like one today. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

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Pacific States Buying Northern Cal Timberlands

Pacific States Industries, San Jose, Ca., has agreed to purchase 30,000 acres of Northern California timberland from Gualala Redwoods Inc., Gualala, Ca. The lands have provided Douglas fir and redwood logs to Pacific States’ Redwood Empire sawmills in Cloverdale and Philo, Ca., for the last 30 years, and are considered to be among the best managed timberlands in the state. CEO Roger Burch intends to continue the same forestry practices, once his company takes over, expected in June. Burch said the lands, like his family’s other timber holdings, would be owned by the Burch Family Revocable Trust. It currently manages more than 45,000 acres of Northern California timberland. The new property straddles the Gualala River near Gualala, Ca., intersected down the middle by the Mendocino-Sonoma county line, with 20 miles of river frontage and a large stand of tall redwoods. Gualala Redwoods is retaining “select higher and better use parcels,” including 58 bluff-top acres above the mouth of the river zoned for mixed-use development, 24 acres across the river, and an undeveloped commercial lot in town. The company will “continue to evaluate strategic alternatives for these parcels, including sale, development and conservation strategies.”

OSH Enjoys Huge Expansion

Parent Lowe’s Cos. will spend $200 million over the next five years to expand and update its 75-unit Orchard Supply Hardware division. This summer, OSH will open a new location in the North Beach area of San Francisco, Ca., with openings

planned for the fall in Pleasant Hillk, Buena Park, San Ramon, and Lakewood, Ca., and Belmont (Portland), Or. So far this spring, OSH has added new locations in Woodland Hills, Cerritos and Irvine, Ca., and Hollywood (Portland), Or. OSH is nearing completion of a full remodel of its store in Granada Hills, Ca., and in fall will finish up makeovers in Sunnyvale, La Crescenta, Capitola and Millbrae, Ca. In recent months, OSH also renovated stores in Berkeley, Mountain View, Paso Robles, Foster City, Pasadena, South Pasadena, Goleta, Thousand Oaks, San City, and Milpitas, Ca. Lowe’s purchased the San Jose, Ca.-based retailer 20 months ago.

Zip-O-Log Buys Cone Site

DEALER Briefs SRS Roofing Supply is opening new Roofline Supply & Delivery branches in Castroville, Ca. (John Alaga, mgr.), and Honolulu, Hi.—its first in Hawaii (Sonny Leandro, mgr.).

Division Ace Hardware , Portland, Or., held a grand opening April 17-19. The 14,000-sq. ft. store is the 4th for owner Stuart Compton. Beacon Roofing Supply

added a new branch in Oxnard, Ca.

Liberty Door & Window , Portland, Or., has been launched by Felipe Hernandez, ex- Northwest Door & Supply.

Orchard Supply Hardware’s

Zip-O-Log Mills, Eugene, Or., paid $1.55 million to buy the long-idled Cone Lumber mill property in Goshen, Or., out of bankruptcy. Primary manufacturing on the 180acre complex ceased in 1995, although Zip-O-Log has run a planing mill on the property since 2006, to complement its eight-acre Eugene sawmill. Observers suspect the purchase might be a sign that the company is outgrowing its Eugene facility.

new store in Irvine, Ca., has become the newest PaintCare recycling drop-off site for old paint.

Capital Grows in NorCal

Union Lumber Co., Marysville, Ca., was honored with the Champion of Yuba County business award by the county’s economic development department.

Capital Lumber Co., Phoenix, Az., has purchased 11 acres adjacent to its Healdsburg, Ca., distribution center, more than doubling its footprint. The additional capacity will allow Capital to enter categories that the market is currently underserved on and will permit its retail customers to bundle purchases on a wider variety of products.

Redwood • Western Red Cedar Siding • Pattern Stock • Specialties

Habitat for Humanity added three new ReStore discount LBM outlets in Los Angeles—in Bellflower, Torrance and Atwater Village, Ca. Habitat is also making plans to build a 10,000-sq. ft. replacement store in Newberg, Or., before the lease on its current ReStore runs out next summer.

Anniversaries: Foster Lumber Yard , Vallejo, Ca., 95th … Parr Lumber , Hillsboro, Or., 85th … McGuckin Hardware, Boulder, Co.,

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Building-Products.com

ProBuild OKs Takeover

ProBuild Holdings, Denver, Co., agreed to be bought by Builders FirstSource, Dallas, Tx., for $1.63 billion. Joining ProBuild’s 400 locations with BSF’s 56 DCs and 56 manufacturing plants will create the world’s largest pro dealer. Floyd Sherman, CEO of BSF, said, “We are very pleased to announce this compelling combination with ProBuild to create a more diversified company with enhanced scale and an improved geographic footprint that

will drive significant value for our customers and stockholders. As the U.S. housing market continues its recovery, we believe now is the ideal time to position Builders FirstSource for its next phase of growth.” The deal is expected to close in the second half of 2015, at which time Sherman will serve as CEO and Chad Crow CFO of the combined company. ProBuild CEO Robert Marchbank will continue as part of the ProBuild leadership team for integration planning and to ensure a smooth transition.

SUPPLIER Briefs San Juan Cedar has begun preliminary design and feasibility work and is looking for investors for a proposed high-recovery, low-energy use sawmill in Arlington, Wa. Concentrating on high-grade niche markets with an emphasis on local consumption, the western red cedar facility will be sized appropriate to available raw material and will be FSC, SFI, and PEMC certified. Banks Lumber Co., Banks, Or., temporarily curtailed production starting April 20 due to market conditions. Cedar Creek , Denver, Co., is now distributing MoistureShield decking, railing and accessories in Colorado and surrounding areas. ITOCHU International agreed PrimeSource Building Products, Irving, Tx., to private equi-

to sell

ty firm Platinum Equity, Los Angeles, Ca.

MiTek Industries, Chesterfield, Mo., has acquired BuilderMT , Denver, Co., provider of workflow process management software to the residential home building market. Installed Building Products, Columbus, Oh., has acquired BDI Insulation, Bakersfield, Ca., for $36 million. BDI’s nine branches install fiberglass insulation in Southern California, Washington, Idaho and Utah. Interfor Corp. is changing the grade stamps at its U.S. Southeast operations to make it easier for customers to identify which mill produced the lumber. Both TPI and SPIB mill grade stamps now include the initials “IF” and a number for each of Interfor’s eight Southeastern mills on each piece of southern yellow pine structural lumber. Sherwin-Williams ranked highest in satisfaction with paint retailers, according to the J.D. Power 2015 Paint Satisfaction Study. In customer satisfaction, BEHR ranked highest for interior paint, and Clark + Kensington was tops in exterior paint.

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Simpson Selling Remaining Lumber Assets to SPI

Sierra Pacific Industries, Redding, Ca., has agreed to purchase the last of Simpson Lumber Co.’s sawmill assets in Shelton, Wa. The deal includes property, as well as the equipment from mills in downtown Shelton, at the Port of Shelton, and in Dayton, Wa. Simpson issued 60-day notices to workers that it will be closing the mills. SPI said it does not intend to operate the facilities, but instead will construct at least one new, state-ofthe-art sawmill and lumber planing operation at the waterfront site. It expects the new plant will be up and running some time in 2017. Simpson recently sold its four other sawmills to Interfor (see April, page 34).

Hampton Rotates Cutbacks

To realign supply with market conditions, Hampton Affiliates, Portland, Or., began a rolling curtailment at its six U.S. stud and dimension mills, according to Random Lengths. The temporary closures started at three facilities May 4, then switched to the other three the following week.

Hampton is monitoring the plan to gauge whether it should be extended or adjusted. It is expected to affect more than 30 million bd. ft. of output. At least initially, shipping departments at all facilities remain open.

USDA Increases Funding to Promote Wood Markets

Agriculture Secretary Tom Vilsack announced the award of over $9 million to expand and accelerate wood energy and other wood product markets. The federal funds will leverage $22 million in investments from partners, resulting in a total investment of $31 million in 23 states. “Working with our partners, the Forest Service is promoting deployment of new technologies, designed to support new market opportunities for wood energy and innovative wood building materials,” said Vilsack. “This funding also supports forest management needs on the National Forest System and other forest lands throughout the United States.” The announcement included funding for Softwood Lumber Boardfunded initiatives such as WoodWorks (“Blast-Resistant Testing for Massive Timber Exterior Wall”) and

American Wood Council (“Market Access for Tall Wood Construction”). The Secretary also announced a new partnership agreement between USDA and the Softwood Lumber Board to help coordinate research, demonstration and market development for innovative wood building technologies in the built environment. The SLB is an industry-funded research and promotion program designed to promote the benefits and uses of softwood lumber products in outdoor, residential and non-residential construction. Through cooperative planning and execution of research and promotional activities, the USDA and SLB will create jobs in rural communities, expand wood use in the built environment and stimulate demand for forest products.

Eco Opens in Tacoma

Eco Building Products has started up a new production facility in the Port of Tacoma, Wa., to serve wholesale customers in the Pacific Northwest and Northeast regions via two coating lines. Future plans call for installation of an automated line that would increase production ten-fold.

simplify

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Building-Products.com

FAMILY Business By Wayne Rivers

Get the right people on your family business bus

T’S GETTING TO

be that time of year again where family businesses are thinking about their plans for 2015 and beyond. One key part of any strategic review is to take a hard look at both current and future human resource needs.

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Drawing on the hundreds of man years of experience we have, one thing that has become painfully obvious is that family businesses have poor systems for attracting and hiring top-quality talent and, perhaps more damaging, are far too willing to put up with mediocre talent and subpar performances among existing employees and family members. Good to Great by Jim Collins is one of the all-time best selling business books. If we were to give you a one line condensation of the wisdom in Good to Great, it would be the following: Get the right people on your bus—and get the wrong people off! Collins says flatly, “People are not your most important asset. The right people are.” Interestingly, Collins’ research found another business model which competed with the good to great one; he called it the “genius with 1,000 helpers” model, and it is the (Please turn to page 30)

Building-Products.com

Family Business (Continued from page 28)

most common one among family firms. In this form of business, “The company is a platform for the talents of an extraordinary individual. The towering genius, the primary driving force in the company’s success, is a great asset—as long as the genius sticks around. The geniuses seldom build great management teams for the simple reason that they don’t need one, and often don’t want one.” The family owned business that relies for too long on the genius with a thousand helpers model is simply not sustainable over time. Collins expected that the leaders of his good to great companies would be high charisma and high-energy. However, his research indicated that most good to great leaders had had a “charisma bypass!” Instead of being rahrah leaders motivating their troops to ever greater heights, he found that good to great leaders got the right people on the bus first. Put another way, they didn’t waste time hiring the wrong people and then trying to motivate them up to reasonable standards. Collins wrote, “Good to great leaders understood three simple truths. First, if you begin with who rather than what, you can more easily adapt to a changing world. Second, if you have the have right people on the bus, the problem of how to motivate and manage people largely goes away. The right people don’t need to be tightly managed or fired up; they will be self-motivated by the inner drive to produce the best results and to be part of creating something great. Third, if you have the wrong people, it doesn’t matter whether you discover the right direction; you still won’t have a great company.”

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In the long run, without great people even the most talented and energetic business leader can only go so far. Attracting and managing the right people, people who are passionate about being excellent at what they do, will ultimately differentiate the sustainable closely held company from those that flounder. For a family business to become sustainable over time, the model must change from a genius, driven, workaholic entrepreneur juggling 100 balls at a time to a business not dependent on that genius for its continued success. By definition, a business is perpetual while a genius, a mortal, is not. In order to achieve the goal of getting the right people on the bus—and ultimately sustainability—you will need to develop a completely new “degree of sheer rigor” in order to ramp up your recruiting, hiring, management, and communication processes. You’re going to have to stop doing tasks and start managing people. Getting the right people on your bus doesn’t happen by accident; it requires intelligent design. As you’re looking at your planning, rally your best people and have a blunt, honest conversation about the quality of your team. Identify with a cold, dispassionate eye where you have real talent and where you’re still carrying someone in whom you once placed high hopes but whose performance has never quite measured up. Develop a game plan to ease those “4” and “5” performers off your team in favor of “8” or “9” quality people. The payoff for being more discerning in the quality of your people is not just a more profitable family business; it’s a higher-quality life. – Wayne Rivers is president of The Family Business Institute, Inc. (www.familybusinessinstitute.com).

Building-Products.com

Ace Grows In-Store Pickup

OUR VALUE PROPOSITION 2015

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Ace Hardware is expanding its instore pickup program nationally at participating stores. First piloted in the summer of 2013 at just a small number of stores, the program has rapidly expanded as of late last year to 1,600 of Ace’s 4,600 U.S. locations. Customers can either go online and check an item’s availability at their local Ace and then go in to purchase, or they can place the order online and pick it up in store the same day. The program has already proven to be sufficient and shows no signs of slowing down as participating Ace stores are seeing a 40% increase in online sales in six months, the company reported.

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Benjamin Moore & Co. has opened a new distribution center in Oakland, Ca., to support demand of its growing West Coast business. The 142,000-sq. ft. facility—the company’s first Silver LEED certified site—will support distribution of an expanded line of Benjamin Moore products and serve as the key hub for its growing network of Asia Pacific retailers and distributors. Later this year, the manufacturer will expand distribution operations in Landover, Md.

BMC Takes Over Choo Choo

Halfway into its two-year headquarters move from Boise, Id., to Atlanta, Ga., BMC has established an instant retail presence in the Southeast

by acquiring Choo Choo Build It Mart parent VNS Corp., Vidalia, Ga. “Over the past 68 years, VNS has built a reputation for providing quality products and reliable services” said BMC CEO Peter Alexander. “We are very excited about growing the companies through the combined strength of VNS and BMC at our facilities located in Georgia and Florida.” VNS operates eight Choo Choo stores in Georgia and Florida, Wholesale Building Products, subcontractor ProCon Construction Services, and manufacturing operations Bestline Sash & Door and TrussMart. BMC has 88 locations in the western United States, Texas and North Carolina.

New Treated Wood Span Card

Southern Forest Products Association has produced a new pocket span card for pressure treated southern pine dimension lumber. The laminated card measures 3.75”x7.75” and contains three tables for treated floor and deck joists in nominal sizes ranging from 2x6 through 2x12. Spans are listed for the visual grades of No.1, No.1 Prime, No.2 and No.2 Prime for the most common on-center spacings of 12, 16 and 24 inches. “This new card will be a handy field reference for the treated lumber spans needed for both raised floor foundations and decks,” noted SFPA’s Eric Gee. Cards can be ordered from www.southernpine.com for $2 each; 50 or more are $1.25 each.

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REDWOOD was selected for this new deck in the San Francisco Bay Area by homeowners Nick and Amy Kritikos because of its superior shear strength, easy workability, and environmental impact. May 2015

Building-Products.com

MOVERS & Shakers Matt Vaughan, ex-Richmond International Forest Products, has been named president of Buckeye Pacific Corp., Portland, Or., succeeding Jeff Dill, who is now CEO of Woodbrowser, Grantham, N.H. David Frick, ex-Boise Cascade, is now Los Angeles, Ca., territory mgr. for BlueLinx. Mark Wiseman, ex-Huttig Building Products, has been Seattle, Wa.based named national accounts mgr.-specialty division for BMD, Galt, Ca. Oren Gaskill III, ex-Western Forest Products, is now in door, millwork and window sales for Builders Alliance, Bellingham, Wa. Jim Mackall, ex-Steeler, is a new Sacramento, Ca.-based product mgr. for US LBM Holdings. Paul Carey, ex-Uniboard, has been appointed national sales mgr. for Plummer Forest Products, Post Falls, Id. Drew Harris is new to BMC, Pleasanton, Ca., as director of optimization. Paul Rose is now warehouse mgr. for Louis Wurth & Co., Spokane, Wa.

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Michael Dolan has joined Premier Building Solutions, Phoenix, Az., as territory account mgr. for Seattle, Wa. John Geigley, ex-Zytech Building Systems, is a new truss designer at Younger Brothers Lumber Co., Peoria, Az. Lisa Voeltz is new to outside sales with Lansing Building Products, Portland, Or. Michael Meledandri has been named regional sales mgr. for west Hawaii with HPM Building Supply, Keaau, Hi. Tim Walker is now in window sales at R&K Building Supplies, Gilbert, Az. Mark Hylland, ABC Supply, has been promoted to business development mgr. for the West region, based in Beaverton, Or. Greg Werner is now customer training specialist with Simpson StrongTie, Stockton, Ca. Gerard DiManna, ex-Beacon Roofing Supply, has joined Owens Corning, as regional sales leader for the Mountain region, based in Denver, Co.

May 2015

Iris Aloia has joined CertainTeed Corp.’s Siding Products Group, as territory sales mgr. for the Seattle, Wa., area. Steve Conboy has been appointed chairman of the newly established board of directors for Eco Building Products, Vista Ca. Gerry Czarnecki is lead independent director; Judith Muhlberg, nominating and governance committee chair; Mark Zorko, audit committee chair; and Tom Comery, compensation committee chair. Janet Powers is new to sales at Vintage Woods, Gypsum, Co. Bob Snyder, ex-Trussway, is now senior director of procurement at OmniTrax, Denver, Co. Kevin Rantin has joined Parex USA, Anaheim, Ca., as director of marketing. Tiffany Awischus has been promoted to product mgr. for Merkrete tile & stone installation systems. Grant Howe has been named chief technology officer at ECi Software Solutions, Fort Worth, Tx. James Gorman has been appointed VP-corporate & government relations for West Fraser Timber, Quesnel, B.C.

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Lud McCrary, co-owner and founder of Big Creek Lumber, Davenport, Ca., was honored for excellent community involvement in Santa Cruz County. County supervisor Ryan Coonerty announced that April 2 would officially be Lud McCrary Day. The proclamation specifically honored McCrary’s service over the last three decades. Owen Moore has joined the credit department at Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

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May 2015

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NAWLA Special Focus By Jim Shalvoy, VP of Marketing, Cedar Creek, & NAWLA Communications Committee Member

Attracting the next generation to the wholesale lumber industry

– This is the second article in a twopart series where NAWLA volunteers offer their perspectives on succession planning.

T ’ S NO SECRET that the wholesale lumber industry is facing a largescale problem: the aging workforce. As the industry continues to gain more years, its key managers and decision makers are growing older right along with it. At the same time, the industry is experiencing a drought in next generation young professionals who are willing to throw their gloves into the

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wholesale lumber ring. According to the Bureau of Labor Statistics, in 2013, the median age of the wholesale lumber industry worker was 47.2, with employees 45 and older comprising approximately 53.4% of the workforce. The lack of younger professionals joining the industry is not for lack of jobs. Even in the post-depression marketplace, opportunities for young professionals are still ripe for the picking. Steve Boyd, president and CEO of Manufacturers Reserve Supply, shares his insights as a third generation

May 2015

wholesale lumber professional in a four-generation business. He says, “[The next generation] should not get discouraged with the opportunities that are out there. Every single company is looking for great people.” He also adds that the compensation paid by successful business is very competitive with other industries out there. With plenty of opportunities and a strong need for the younger generation to join the workforce, why haven’t they been flocking over in droves? Boyd attributes the lack of young professionals, in part, to the type of work. Considered a “shirtsleeves” industry, young professionals are seeking out “sexy” jobs, he says, in technology or on Wall Street. While family-owned businesses can attract next generation family members who have been immersed in the industry their whole lives, those who haven’t had that introduction into wholesale lumber don’t know that these opportunities for advancement and business success exist. Boyd’s son, Brian, is an example of a family member who had an introduction to the industry from an early age, but sought new ways to add value to his family’s business. “After graduating from college, Brian worked for one of our competitors for four years, where he gained valuable experience and solidified his

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May 2015

work ethic,” said Boyd. “Five years ago, Brian joined our team at MRS. He has worked his way up through many phases of the company. He has headed up inside sales and has been our operations manager. He spearheaded the rebuilding of one of our warehouses and was recently promoted to general manager. He has brought vitality and fresh ideas to our organization.” To get the word out to those who are unfamiliar with the forest products industry, you can invest in education and marketing initiatives at the collegiate or young professional level. Boyd says that his organization has had some success with internship programs. Internship programs allow young professionals to get an insight into the industry by meeting successful employees and getting a taste of the kind of work that the organization does. Often, local universities, community colleges, trade schools and even high schools help support the promotion of internship programs to their students.

About NAWLA

NAWLA 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 at www.nawla.org. According to a U.S. News and World Report article, “Why You Should Hire Interns for Your Office,” if you impress your interns and provide them with a powerful work experience, they immediately are interested in spreading the word to their peers, thus providing you with a pipeline to other members of their generation. Furthermore, their insight into new technology and their fresh perspective can benefit your company during their internship tenure. Just like Google or Apple, make the benefits of working for the wholesale lumber industry readily available. Through your website, social media efforts or just verbally spreading the word in your local community, you can be your own advocate. And don’t forget to do your research. According to a study conducted last year by Deloitte, almost one in four millennials want a chance to show their leadership skills. They also want a chance to think creatively, with 78% of surveyed millennials stating they were strongly influenced by a company’s innovativeness when deciding to work there. Finally, millennials ultimately want to make a difference; 63% of those surveyed give to charities and 43% are actively involved in a volunteer position. Use this information to explain how your organization will provide them with all the creativity, purpose, freedom, support and opportunities that they crave. Boyd also recommends investing time in those next generation individuals who you have already attracted to your business: “Compliment them, encourage them,

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challenge them, give them some decision-making ability,” he says. You can also help them advance their career through educational programs, such as NAWLA’s Wood Basics Course. By showing them that you are committed to their success, they will see that there’s no limit on what they can accomplish in this industry.” Throughout this process, remember what you are most passionate about in your job – what drew you to the wholesale lumber industry? Boyd comments on one of the most unique aspects of wholesale lumber from his perspective. “The ethics and integrity of our industry is unparalleled. How many industries would give a verbal order on the phone for a million dollars with no contract?” Though it may seem like a daunting task, attracting the next generation workforce doesn’t have to be difficult. Boyd says that, though wholesale lumber isn’t necessarily a “trendy” industry, it has been around a long time and it’s certainly here to stay. – Jim Shalvoy is VP of marketing for wholesaler Cedar Creek, Oklahoma City, Ok., and a member of NAWLA’s communications committee.

References:

Bureau of Labor Statistics http:// www.bls.gov/cps/industry_age.htm U.S. News and World Report http://money.usnews.com/money/blo gs/outside-voices-careers/2011/ 01/11/why-you-should-hire-internsfor-your-office Big Demands and High Expectations: The Deloitte Millennial Survey http://www2.deloitte.com/ content/dam/Deloitte/global/Docum ents/About-Deloitte/gx-dttl-2014millennial-survey-report.pdf

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May 2015

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NAWLA Special Focus By Duncan Davies, President & CEO, Interfor

Growing the market for softwood lumber

EARLY A DECADE ago, after years of conflict, the North American softwood lumber industry came together in a collaborative effort to protect and grow the market for our products. We’ve made tremendous progress since then and are on the cusp of some major achievements. Our goal now is to make sure we stay the course and build on the momentum that’s been established. As a member of the industry groups that have guided these efforts, I have had the privilege of working with a number of talented and forward-thinking individuals from both sides of the border on these initiatives. The steps we’ve taken have not been easy. We’ve had to abandon traditional self-interest and old-style rhetoric to focus on the benefits of the “greater good.” I am absolutely convinced we’re on the right track and need to do everything we can to keep things moving in the right direction. As an industry, we need to stay in touch with market

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dynamics so we can determine where we are most vulnerable, and where we can grow. In a “normal” market, the demand for softwood lumber in the U.S. is estimated to be about 53 billion bd. ft. While we’ve been operating at levels well below that for the last eight or nine years, there’s a general expectation the market is recovering and will return to or exceed normal levels in the years to come, which would be great. I, for one, don’t think we can afford to sit back and wait for the market to recover “naturally.” The good news is most of the industry agrees. Threats to our business in the form of fewer housing starts, an increase in the percentage of multi-family houses (which consume about one-third the amount of lumber that a single family house does), smaller homes and the displacement of lumber by substitute products such as steel, cement and composites could easily erode more than 10 billion bd. ft. of “normal” demand. Conversely, there are opportunities to increase demand by expanding wood use in non-residential and industrial applications, multi-family houses, interior and outdoor uses, and tall wood buildings which could grow “normal” demand to well above 53 billion bd. ft. The industry’s journey to collaboration began in 2006 with the signing of the Canada-US Softwood Lumber Agreement (SLA). When the SLA was signed, the federal governments of Canada and the US, in their wisdom, formed the Binational Softwood Lumber Council (BSLC) and appointed a 12member board consisting of six representatives from each country. BSLC members were asked to provide a common voice to promote North American softwood lumber products and to build “goodwill” between the two industries. While the BSLC started tentatively, it did not take long to realize the Canadian and U.S. industries faced many

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similar challenges, and could achieve more by working together. Recognizing that the funds available were limited and would not be sufficient to counterbalance the trend away from wood as a building material of choice, the BSLC played a key role in forming the Softwood Lumber Board (SLB), which was established by the industry for an initial five-year term in a democratic vote in 2011. The SLB is a mandatory promotion fund, or check-off, authorized under the U.S. Farm Bill. It operates with an

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annual budget of approximately $15 million funded by industry, with a tariff of 35 cents per thousand bd. ft. levied against all suppliers to the U.S. market, including imports, on volumes in excess of 15 million bd. ft. per supplier. The SLB is managed by a 19member industry board and is overseen by the Agricultural Marketing Service of the U.S. Department of Agriculture (USDA). The SLB has developed a set of complementary programs to support its goal to “sell

May 2015

more lumber,” including: • The American Wood Council (AWC) is responsible for changes in building codes and standards that have opened doors for wood and also protects wood’s position in current codes. In 2014, it proposed 2,300 changes to building standards—and 95% were accepted. AWC’s work with code developers and officials, builders and planners leads to buildings like the five-story student residence at the University of Washington, which consumed more than 2.5 million bd. ft. of wood. • reThink Wood is a communications program that shows developers, architects, designers and engineers the value of softwood lumber as a renewable building product. It has had tremendous success presenting wood as a modern building material that costs less and delivers more. • WoodWorks in both Canada and the U.S. has technical experts who provide one-on-one project assistance to architects, engineers and designers with the aim of converting steel or concrete projects to wood. A high school in El Dorado, Ar.—with 1.8 million bd. ft. of wood—is just one of many successes. • The Wood, Naturally campaign provides promotional materials based on traditional and social media to educate and inspire homeowners and contractors so they choose wood for appearance and structural applications in, on and around the home. • But, to me, the true game changer for our industry is the Innovation Initiative that the SLB is supporting, especially as it relates to tall wood buildings. Europe and Australia already have wood buildings up to 14 stories tall. British Columbia just opened its sixstory Wood Innovation and Design Centre, and there are plans for a seven-story wood office building in Minneapolis. Award-winning Vancouver architect Michael Green says he expects to see wood buildings 30 stories high, or even more. These buildings aren’t “stick framed.” They’re built using mass timber products like cross laminated timber, nail laminated timber, and glulam, often in conjunction with other building materials, which provide engineering attributes and resistance to fire which makes “mass timber” a viable construction alternative. Building-Products.com

Significantly, buildings constructed in this manner have the potential to reduce the embodied carbon by more than 70% vis-à-vis other materials. To advance its Innovation Initiative, the SLB joined with the USDA and BSLC to launch the U.S. Tall Building Prize Competition. The U.S. government is on board because it knows that by showcasing the viability of advanced wood products, it can support rural economies and advance its sustainability and climate change agendas. The U.S. Tall Building Prize Competition has received a number of stunning submissions. The competition jury is currently working its way through its due diligence and expects to be in a position to announce the winner later this spring. With any luck, we’ll see the first tall wood building in the U.S. under construction in 2016. Although it started work in 2012, the SLB has had a significant impact on our industry. Our estimates indicate that, in 2014 alone, the SLB generated 500 million bd. ft. in incremental demand for wood products worth more than $200 million—that’s a 12:1 return on investment. There has never been a more important time to stand up for the SLB, and to support and leverage the successes of its programs. By building on the collaborative strength of our industry, we can address the threats and take advantage of the opportunities in front of us. With the Canada-U.S. Softwood Lumber Agreement set to expire in October, and the SLB subject to a revote in 2016, we can’t allow narrow interests to derail the gains

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we’ve made. And, to be clear, I am speaking here as a North American and someone who cares deeply about our industry. I invite everyone to play a role. Take action, don’t be a bystander. Work with us. Be a vocal advocate for the SLB and its achievements. I’ve been in the lumber business for more than 35 years. For the first time in my career we have a sustainable funding model and that’s dealing with both the threats and opportunities facing the softwood lumber industry. We’ve made great progress. Let’s keep it going. – Duncan Davies is president and CEO of Interfor Corp., Vancouver, B.C., a growth-oriented lumber company with operations in Canada and the United States. The company has annual production capacity of 3.1 billion bd. ft. and offers one of the most diverse lines of lumber products to customers around the world. He is vice chair of the Softwood Lumber Board and a director of the Binational Softwood Lumber Council. This article is a summary of his presentation on the softwood lumber market at NAWLA’s recent Leadership Summit.

May 2015

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NAWLA Special Focus By Bryan White, NAWLA

The impact of housing market trends on the lumber industry

VERYTHING I’VE READ leads me to believe that 2015 will continue to be a great year for the lumber industry. Most companies will agree that the market slowed in 2014, after experiencing incredibly strong growth in 2013. While that trend continued through most of 2014, new home construction leveled off near the end of the year, and commercial market sales remained adversely affected by the decline in public construction activity.

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This March kicked off the spring home-buying season, and between now and the end of June, it is predicted about 40% of all home sales for the year will occur during this time. These next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets. Overall, I feel good about housing. In fact, many expect this year to be the best year for home sales and new home construction since 2007.

May 2015

A recent webinar featuring David Crowe, chief economist with the National Association of Home Builders, and Kemp Harr, publisher of Floor Focus Magazine, discussed the factors that impact growth in the U.S. single-family housing market. They stated that most economists are calling for 26% growth to 802,000 units in 2015, increasing to 1.1 million units in 2016. This is good news for those of us in the lumber industry!

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There are a number of other reasons we should be optimistic about housing markets this year: Housing prices continue to rise across the country, but are still about 10% below their 2006 peak nationally. But peak-to-trough comparisons can be misleading as many markets experienced unsustainable highs during the last decade. Instead, you need to look at the fundamental drivers, like payment-to-income and price-to-rent ratios. Most markets have home values that are sustainable. Another factor is that prices are especially attractive given that mortgage rates remain low. From January 2014 to January 2015, mortgage rates fell nearly 0.75 of a percentage point. The next component is household income. Incomes have largely stagnated over the past decade or risen marginally, and after adjusting for inflation, incomes have actually fallen for the median household. But there have been glimmers of good news in the most recent jobs report. Over the 12 months ending in February 2015 the U.S. economy added nearly 3.3 million jobs, the fastest pace since 2000. And with labor markets tightening, we might be starting to see wages and incomes rise. Rising rental rates also have an effect. Rents increased an average of 3.6% in 2014 and nearly 11% over the last three years. With demand rising rapidly, it is predicted that rents will rise at or above the rate of inflation this year as well. This may entice renters to purchase this year. How does this affect the lumber industry specifically? The recovery of the housing market is benefiting many industries, but few are as directly tied to home building as the lumber industry. At the height of the housing boom in 2005, consumption of U.S. lumber hit almost 65 billion bd. ft. It fell to about half that at the bottom of the market in 2010. With the rising demand, our industry is roaring back to life. Forest Economic Advisors says that with new residential construction increasing steadily and residential improvements bouncing back, demand is expected to grow 7% per year in 2015-16. Given the multiple forecasts of general economic expansion through 2017, it may be time to seriously think about the following:

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• Assess if your on-boarding and training programs are adequate to handle the additional labor you may need. • Determine if you can increase your use of technology to lessen your dependence on human labor. • Determine if you have enough working capital or capital sources. Growth burns through cash. • Ask yourself if you have the systems and equipment to handle additional orders/business or are you going to be losing market share to someone who can handle more business.

• Assess if you can maintain quality at higher volumes of output. This is not easy to accomplish, especially when capacity constraints crop up. • Raise prices! Capacity-constrained businesses and industries should be regularly raising prices. Think and act upon the above items regarding your business as we move through 2015 to enable you to get the most return on your investment. – Bryan White is membership and operations manager for the North American Wholesale Lumber Association.

May 2015

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NAWLA Special Focus By Blue Book Services

Evaluating effective and efficient credit department functions

ID YOU KNOW your credit department can be essential to increasing sales, meeting corporate goals, and enhancing cash flow? Surprisingly, many credit departments and their personnel are not only overlooked, but frequently ignored, as part of the operational process in achieving these critical business elements. Too often, companies fail to take advantage of available performance metrics to identify areas where credit functions can be more effective and of more value to an organization. David Vaiz, credit services manager for a global shipper in Watsonville, Ca., believes it is imperative to incorporate performance metrics: “The credit department is responsible for one of the key assets of our company— accounts receivable. Measuring effectiveness helps ensure that we’re minimizing the company’s credit risk while promoting sales.” Further, he notes, “I strongly believe you can’t improve what you can’t measure.” Riverhead, N.Y.-based Charles Brown, credit manager for a shipper and importer, concurs. “Because accounts receivable is such a large asset of our company,” he explains, “I monitor every account on weekly basis and numerous accounts on a daily basis.” Credit departments can also play a role in helping a company grow. Evaluating top accounts can identify

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patterns and attributes that can be used to solicit new accounts. Additionally, determining which accounts you wish to retain as customers can help fuel profits.

Performance Metrics

To help monitor accounts, a standard metric is “days sales outstanding” (DSO), which measures the liquidity of your accounts receivable (A/R) relative to credit sales on an annual basis. To arrive at your DSO, divide accounts receivable by annual sales, then multiply the sum by 365 to arrive at the daily figure. This DSO analysis is an indicator of the number of days, on average, customers take to pay invoices. As a rule of thumb, the higher the DSO ratio, the more likely your overall customer base is experiencing credit problems or has slower-paying accounts themselves. Conversely, if you have an extremely low ratio, it may mean your credit policies are so strict they’re inhibiting possible sales. Brown uses DSO to help monitor accounts and make sure averages aren’t falling “to the point where it impacts our cash flow.”

Tracking Trends

Trends can be a key component to understanding your accounts. By monitoring DSO on a monthly basis, you can follow possible seasonality or

May 2015

“peak” seasons in pay. For example, if a company shows a lower DSO in summer versus winter months, you can better prepare your own cash management knowing accounts are slower at certain times of the year. As the CFO of a Los Angelesbased shipper/distributor puts it, “When metrics reflect something different than expectations, any anomalies must be investigated. If the anomalies reveal something significant, then the credit criteria must be examined for that particular customer. Perhaps a discussion with the customer may reveal a temporary situation or extenuating circumstances.” Few companies are in a position to sell only to an industry’s top paying customers. Growth and new sales are often the result of assuming increased credit risk. In these situations, using a metric to monitor these accounts can be beneficial, such as the “prior month’s past due collected” ratio. The formula, which uses the current month’s past due age categories divided by the beginning receivables of the prior month, will calculate how much has been collected on past due accounts. While this could be self-evident in the current month’s A/R aging report, it doesn’t help you monitor your collection efforts. Another way to evaluate effectiveness is to analyze the cost of the resources devoted to collections ver-

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sus sales. The following relationship is similar to determining an organization’s “cost per employee,” but specifically shows how much was spent to collect each dollar of credit sales (department/credit personnel costs divided by credit sales)—in this case, the higher the percentage, the better. Another tool used to determine credit department effectiveness is a review of the two most dreaded words for any business—bad debt. A simple calculation can reveal the accuracy of credit decisions relative to overall credit sales by taking bad debt, net of recoveries, and dividing by credit sales. Here, the lower the percentage (of dollars written off to sales dollars), the better.

Best Tools for Your Business

Unfortunately, there is no one-sizefits-all metric every organization can use. Instead, consider the formula that will be most helpful in understanding

your accounts, monitoring their performance, and serving as a reliable guidepost to how well you are collecting from your accounts. According to Vaiz, every company should have its own policy and philosophy in how credit and collections are approached. Further, he explains, “the metric used should coincide with that policy and philosophy, and should convey whether credit is being managed according to it.” While Vaiz confirms there is no magical or right process, he wholeheartedly supports the use of metrics, reemphasizing, “You can’t improve what you can’t measure.” Brown finds DSO useful because “it helps communicate and explain to everyone in the organization how well the company is collecting its money, which provides a better framework for making management decisions.” Brown referred to DSO as a precursor to ensuring a company’s ability

to be flexible. “If we encounter a situation where our sales manager is requested by one of our customers to provide more products, our DSO can provide a snapshot of our own ability to pay more suppliers within their terms.” For example, he explains, “If our DSO shows an average of 23 days and a supplier expects payment within 30 days, we know we have the financial flexibility to accommodate the additional sales.” The right “blend” of measurements and metrics will be different for each company; yet metrics can be a valuable internal tool for businesses of all types and sizes to communicate and monitor the effectiveness of collection policies and processes. – This article is provided by Blue Book Services, a comprehensive online directory and credit information resource for the lumber industry, actively involved with NAWLA since 2009. Learn more at www.lumberbluebook.com.

Industry Pay Trends Every year, Blue Book Services collects industry-specific accounts receivable data worth over $10 billion from lumber suppliers throughout the U.S. and Canada. Confidentially maintained, this information is compiled, averaged,

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and analyzed to help Blue Book members make informed credit decisions. The following chart portrays recent industry pay trends, which continue to rise as the lumber industry strengthens.

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May 2015

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NAWLA Special Focus By NAWLA

New courses offer competitive edge to industry professionals

N A TIME OF economic recovery, staying relevant and qualified is the only way to maintain and even grow a business. The North American Wholesale Lumber Association

understands this very well and works year-round to give their members a leg up on the competition. A unique benefit to NAWLA membership is not only access to the latest news

about cutting edge technologies and best practices in the lumber industry, but also networking events and educational opportunities. David Stallcop, of Vanport

NAWLA Wood Basics Course

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International and NAWLA’s Education Committee, expands on NAWLA’s educational relevance. “The educational offerings that NAWLA is creating for its members are exactly what our industry needs today, [after] the recession took many knowledgeable professionals out of our industry,” Stallcop says. Statistics from the U.S. Department of Commerce’s Bureau of Economic Analysis show that employment in the forest products industry dropped 29% as a result of the recession. This decrease gives rise to the need for advanced and continued education to ensure that forest products professionals stay current and competitive in the field. “Currently, the industry is refilling positions that are [vacant] from a combination of retirements and improvements of the economy,” says P. David Jones, Ph.D., an associate professor at Mississippi State University (MSU) and an instructor and cocreator of NAWLA’s Wood Basics course. Many newcomers to the forest products industry are coming from established careers in other fields and are in search of programs that will help them apply past education and training to a new industry. They’re looking specifically for programs that focus on real-world applications of information gained through years of industry experience and research. But those aren’t the only people who could benefit from NAWLA courses. Jones says that many current employees in the forest products industry were hired because of their potential to succeed in the industry. Leadership can invest in the future of their businesses by investing in these employees and their education. “The programs offered by NAWLA provide that edge, allowing companies to focus on their business and provide training that builds leaders.”

Wood Basics

The Wood Basics Course is a fourday immersion class that includes a blend of classroom training, field experience and university resources. The curriculum of this introductory course addresses the full spectrum of the forest products industry, from

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seedling to tree all the way through to production and sales. Attendees learn practices and standards from industry experts in classes designed to cultivate success in all operations. This limited-enrollment course is a must for employees who are new to the industry. This program is hosted twice annually, at MSU in the spring, and Oregon State University (OSU) in the fall. The fall session, set for Sept. 21-24 at OSU, has already sold out; however, you can join the wait list for the spring course at MSU.

Wood Masters

Immediately preceding this year’s Traders Market in Dallas, NAWLA will be offering Wood Masters, an innovative course that combines case studies, presentations and panel discussions for a stimulating and informative weekend. Taking place Nov. 3-4 at the Hilton Anatole, the two-day course will focus on advanced selling and negotiation skills to instruct attendees about enhancing assertive communication, identifying and eliminating flaws in their negotiation profiles, and increasing the efficiency of their prospecting and time management efforts. The agenda features sessions

Wood Masters Nov. 3-4, 2015 Hilton Anatole, Dallas, Tx. Registration now open like “Advanced Negotiation Skills” and “Advanced Selling Skills,” which will focus on the nuances of conducting business in the lumber industry, from developing a prospecting guide to sharpening phone and email communications. Wood Masters will also feature a panel discussion session with lumber professionals, industry experts, and professors Chris Knowles from OSU and P. David Jones from MSU. Because this unique training takes place immediately before Traders Market, NAWLA encourages sales professionals, traders, and other lumber professionals with three or more years of experience to attend this course to maximize their development

May 2015

opportunities. You can register today for both the Wood Masters course and EMI on the NAWLA website, www.nawla.org.

Executive Management Institute

Experienced managers are invited to register for the Executive Management Institute (EMI), which will take place Sept. 21-24 at OSU alongside Wood Basics. Participants of this four-day course will learn about their role as an executive and how to manage legal issues, customers, inventory, sales and marketing. In an effort to showcase the realworld applicability of this course, each participant is encouraged to bring key issues and first-hand experiences to discuss throughout the course. Industry experts and experienced instructors will be on hand, guiding participants through courses that detail every aspect of running a successful company. From establishing the right company culture and philosophy and practice of leadership, to contract and HR law, EMI covers everything a manager needs to know to keep a business thriving. Stallcop says, “I can easily see leaders in our industry recommending many of their staff who are newer to the industry to take the Wood Basics Course, and those who management sees as future leaders in their respective companies to attend both Wood Masters as well as the Executive Management Institute.” Registration is limited for both Wood Masters and the Executive Management Institute, so NAWLA members are encouraged to register as soon as possible at www.nawla.org for these unique learning opportunities. Additionally, all EMI participants will receive a $200 registration discount to Traders Market. “The timing is perfect to train up the next generation of lumber professionals,” Stallcop says. “NAWLA is taking the lead in making this happen at all levels of our industry — financial accounting, product knowledge, global and domestic markets, logistics and supply chain management, new trends and products that are entering the market.”

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NAWLA Special Focus By NAWLA

A first look at NAWLA’s 2015 Traders Market

FTER AN EIGHT - YEAR absence, NAWLA’s Traders Market is returning to Dallas, poised for big things. Certainly, based on the attendee feedback, last year’s Traders Market was one of the best in NAWLA’s 18-year history. Nearly 1,500 attendees converged in Chicago to visit with peers and representatives from more than 250 organizations. In the post-event survey, 96% said the benefits justify their company’s investment in the event. Typical were comments like this one from Chris Sprague, U.S. Lumber Group, responding to how attendees benefited from the event: “Relationship building and an opportunity to impact growth of our business. Also a very good conduit for new ideas and product development.” In addition to the opportunities to walk the aisles, meet or reconnect with customers and prospects, and locate new products and services, last year’s event included new features such as Learning Lounges and a reception on the trade show floor. According to Kip Fotheringham, director of sales and marketing for Hampton Affiliates, and 2015 NAWLA Traders Market Committee chair-

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man, this year’s event, Nov. 4-6 at the Hilton Anatole, will retain the traditional format that is so popular with the forest products wholesalers and manufacturers that attend. “We recognize how important it is for this event to be a convenient and cost-effective way to see customers,

May 2015

meet prospects, and connect with old and new friends – all under one roof,” said Fotheringham. “So our committee volunteers, Board and staff are all focused on making that experience even better than before. We’ll introduce new ways to communicate with attendees, help them access more after-hours entertainment options, and make a few other tweaks to continue to improve the event experience.”

The Traders Market App

For the first time in 2015, Traders Market attendees will have access to all of the relevant information they need in the palm of their hand (or on their tablet device). Through the free event app, exhibitor descriptions, the floor plan, attendee list, schedule and similar materials will all be available within this convenient resource. Providing the most up-to-date information and the ability to send alerts onsite are additional benefits of this tool. Because the app will download to a smartphone or tablet, the information is available even without an Internet connection. For updates, simply connect to WiFi or mobile data plan.

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The Dallas Experience

“The Traders Market hasn’t been to Dallas since 2007, and the city has changed dramatically since then,” said Fotheringham. “We’re excited to return this year to benefit from the new entertainment districts that have sprung up just a few minutes away from the hotel, and new transportation—ranging from trolleys to Uber—that can be used to get to those areas. All of these elements should make entertaining customers and prospects during Traders Market even easier and more enjoyable than before.” The hotel itself is within the Dallas Design District, which means it’s just a minute or two away from restaurants like the Community Beer Co., Rodeo Goat, and Meddlesome Moth. It’s also six minutes from Uptown, home to more than 60 restaurants and pubs along the

to send your staff members to Dallas for the Wood Masters Course immediately preceding the Traders Market, you can make this year’s event a way to train your staff while filling your sales pipeline.” Registration is open now for Wood Masters and opens June 1 for Traders Market. Exhibitors may secure their booth space now, though, on a first-come. Visit www.nawla.org to learn more about the event. Save the date and start planning your trip now.

NAWLA Traders Market Nov. 4-6, 2015 Hilton Anatole, Dallas, Tx. Registration opens June 1 McKinney Avenue Trolley. Also only six minutes away from the hotel is Trinity Groves, a new 15-acre restaurant, retail and entertainment complex in West Dallas. Fifteen restaurants and breweries are housed in this development, with additional choices coming soon. With shared outdoor patio areas, this is a venue that’s still enjoyable in Dallas in the fall. Through tweaks to the schedule, resources like the new app and increased coordination with the Anatole staff, accessing these venues after the trade show floor closes will be a lot simpler as well. “Combining these enhancements with unrivaled access to this many lumber and building material manufacturers is sure to bring a similar number of attendees to Dallas in 2015,” said Fotheringham. “Additionally, with the option

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May 2015

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NAWLA Special Focus Leadership Summit Recap

MOMENT OF MAGIC: Art and wine paired well with some magical entertainment as guests enjoyed a performance from a magician who called up NAWLA secretary/treasurerJohn Stockhausen along with other industry names to participate in some friendly hocus pocus.

Executive summit provides insight, builds fellowship

A MERICAN Wholesale Lumber Association’s two-day Leadership Summit was aimed to help ORTH

attendees address their most pressing business challenges. The event included insight on freight transporta-

Pau Lope® is back “Nothing Measures Up” Pau Lope® Brand Decking is considered the World’s Finest Hardwood Decking for its beauty, durability, highest grade, absence of defects, low KD moisture content, and fine packaging. Trademarked in 1984 but unavailable for the last five years, Pau Lope® Decking has returned better and stronger than ever, under new ownership. The Pau Lope Company LLC has aligned with sawmills, and refreshed the grade and quality to the high standards of the brand’s heritage.

tion, marketing your business, industry trends and much more. Held at March 22-24 at the Westin Kierland, Scottsdale, Az., the program was open to mid-level managers for the first time, something that was deemed appropriate as the LBM community is striving to raise up next generation industry leaders. Attendees were able to hear best practices and insights from current industry leaders to help them reduce costs and improve company performance. Additionally, guests heard from featured speakers including Roy Martin, RoyOMartin; Duncan K. Davies, Interfor; Matthew K. Rose, BNSF Railway; Richard Garneau,

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May 2015

NAWLA 1st vice chairman Jim McGinnis, McGinnis Lumber, Meridian, Ms., shares his insight with conference guests. Building-Products.com

Resolute Forest Products; and Randy Aardema, US LBM. The event concluded with a motivational presentation by former MLB pitcher Jim Mecir. The former Yankee showed guests how to break through barriers that block success, a key tool when building a business. The Wine & Design Spouse &

Companion event gave guests a chance explore their creative sides with painting veteran Kathy Boyts. The 25-year art and design expert led a painting session for the guests, experienced or not. While enjoying brunch and wine, NAWLA members were given a more social atmosphere and a chance to

engage with each other, providing one of the most important and cherished aspects to the association and the LBM industry overall: a sense of community. (See next two pages for more photos of the event.) Next year’s Leadership Summit is March 13-15, 2016, at the Westin Mission Hills, Palm Springs, Ca.

WINE & DESIGN: Merchant Magazine publisher emeritus Alan Oakes joins the women of NAWLA in a group photo as they show off their works of art during the second annual Wine & Dine Spouse & Companion event.

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

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NAWLA Leadership Summit in the desert: [1] Todd Lindsey, Alan Oakes, Jodi Lindsey, Douglas Colson. [2] Renn & Andrew Goodman. [3] Cullen Cowap, Eddie Rawson. [4] Bob Mcssorley, Steve Boyd, Mauricio Bravo. [5] Jim Houser, Anthony Muck, Blair Buchanan. [6] Kathy & Lawrence Boyts. [7] Mary Jo Nyblad, Barry & Linda Schneider, Mike Goodman, Stephanie Moxley. [8] Marc Saracco, Konrad Tittler. [9] Jennifer & Kip

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May 2015

Fotheringham. [10] Garey Keltner, Chris Beveridge. [11] Mark Erickson, Linda & Russ Hobbs. [12] Steve Ekstein, Steve Rhone, Rick Ekstein. [13] Pat Managan, Steve Rustja, Scott Elston, Jim Krauseneck. [14] Ricardo Roman, Bob McSorley. [15] Kathy & Jim Buffington. [16] Curt Stevens, Janet & Mike Sims. [17] Bob Mai, Doug O’ Rouke. [18] Rob Hruby, Steven Rustja. [19] Steve Sprenger. (More photos on next page)

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MORE NAWLA (continued from previous page): [20] David Bernstein, Paul Owen, Aaron Sulzer. [21] Tom Kohlmeirer, Rob Latham. [22] Gary Pittman. [23] Patrick & Shelly Adams. [24] Harris Gant, Joshua Tyler. [25] Derrick Coder, Kevin Dodds. [26] Heather Sulzer, Erol Deren. [27] Grant & Shenell Philips. [28] Dawn & Mike Holm. [29] Traci & Mike Mordell, Merry & Ralph Schmidt. [30] Kevin & Carly Dodds. [31] Julie McLean, Jim

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& Cindy McGinnis. [32] Shelly Elston, Lilian Ekstein, Alan Oakes, Elizabeth Rustja. [33] Bradley & Karin Schneider. [34] Alden Robbins, P.J. [35] Rick Fortunaso, Jean Michel Broschart. [36] Shelley Kohlmeirer, Mary Lou Carlson. [37] Todd Hixson, Kent Marks. [38] Mike Wardlow. [39] Rick Olszewski, Wayne & Amy Trousdale. [40] Bobby Byrd, Terry Secrest. [41] David Conner, Robert Harris.

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KAHLE On Sales By Dave Kahle

First steps to effective sales planning

love to be active—out in their territories, seeing people, solving problems, putting deals together. This activity orientation is one of the necessary characteristics of a sales personality. A day sitting behind a desk is their idea of purgatory. Unfortunately, this activity orientation is both a strength and a weakness. Much of a salesperson’s ability to produce results finds its genesis in the energy generated by this activity orientation. But it can be a major obstacle. Far too often, salespeople are OST SALESPEOPLE

guilty of going about their jobs directed by the credo of “Ready, shoot… aim.” In order to be effective, salespeople must be focused and thoughtful about everything they do. Activity without forethought and planning is a needless waste of time and energy. For most salespeople, if they were to make a list of everything they do in the course of a day, they’d likely discover that almost everything they do can be done cheaper or better by someone else within their company. Someone else can call for appointments cheaper or better than salespeo-

ple. Someone else can more easily check on back orders. Someone else can fill out a price quote, write a letter, or deliver a sample, cheaper or better. In fact, the only thing a salesperson can do that no one else in the company can do cheaper or better is interact with the customers. It’s the face-toface interactions with customers that define the value they typically bring to the company. If it weren’t for that, your company would have little use for salespeople. So, the face-to-face interaction with the customer is the core value sales-

Big Creek is here to help with Everything Redwood Call our friendly, knowledgable wholesale team today

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Creek in 1946, back when “we were falling timber with hand tools.” Called a legend of the industy with his 70 years of experience, he’s most proud of his splitting of redwood pickets, posts and shakes— these days for his personal ranch or donated to historical restorations.

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457-5039 Building-Products.com

people bring to a company. Yet, most studies indicate that the average outside salesperson only spends about 25%–30% of his/her work week actually face-to-face with the customer. So, doesn’t it make sense to spend some time planning and preparing to make that 25%–30% of the week the highest quality you can possibly make it? Of course it does. Good decisions require good information. It’s the Information Age, remember. And that means, if you’re going to be an effective professional

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salesperson, you must collect, store and use good information. You can’t make effective plans if the information on which you build those plans is faulty or sketchy. If you were going to build a home, you’d want to know about the nature of the ground on which the home was to be built. You’d need to have a good idea about what kind of weather conditions the home would be enduring, what the building codes were, what materials were available, what they cost, and what kind of skilled workmen were required. The point is that you wouldn’t be able to build a home very effectively if you didn’t have good information on which to base those plans. The same principles apply to building a home as well as delivering effective sales performance. In both cases, good planning requires good information. It may be that your company provides you all the information you need. But, it’s more likely they don’t. If you’re going to work with good information, you must be the one who collects that information. That means that you must create systems to collect, store and use the information that will be most helpful to you. Since our

world is constantly producing new information, the system you create isn’t something you do once and forget. Rather, it must be a dynamic system that is constantly processing, storing and using new information. Creating and maintaining your system is a matter of following several specific steps. Here’s the process: Step 1: Create a list of the categories of information you’d like to have. Start by listing the kinds of information you think will be most useful to you. Think about your job and determine what kinds of information you’d like to have to help you deal effectively with your customers. Here’s a partial list that would fit most salespeople: • Information about customers and prospects. • Information about competitors. • Information about the products, programs and services you sell. You may have a number of other categories, but this is a basic list with which you can begin. Step 2: Working with one category at a time, brainstorm a list of all the pieces of information you’d like to have within that category. Start at the top and work down. Look at cus-

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tomers and prospects first. What, ideally, would you like to know about them? Consider information about the account’s total volume of the kind of products you sell, the dates of contracts that are coming up, and the people from whom they are currently buying. All of that seems pretty basic. However, most salespeople have no systematic way of collecting and storing that information. So, while you may occasionally ask a certain customer for parts of it, you probably aren’t asking every customer for all the information—or storing it and referring to it in a systematic way. Do you think your competitors know exactly how much potential is in each of their accounts? Probably not. If you collect good quantitative marketing information, you’ll be better equipped to make strategic sales decisions and create effective plans. For example, you’ll know exactly who to talk to when the new piece of equipment from ABC manufacturer is finally introduced. And, you’ll know who is really ripe for some new cost-saving product that’s coming. Step 3: Develop a system and tools to help you collect that information. The single most effective tool is an

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May 2015

account profile form. It’s an incredibly effective tool that generates and organizes the most powerful processes. Step 4: Store it efficiently. You may have done a great job of collecting information, but if you’ve stored it on old matchbook covers, coffeestained Post-its, and the backs of old business cards somewhere in the backseat of your car, it’s probably not going to do you much good. Ideally, store it on your computer. If not, you’re going to need to create a set of files (yes, manila folders!) in which to store your information. Step 5: Use it regularly. Before every sales call, review the information you have stored. That review will help you make good decisions about each aspect of the sales call. Likewise, review the information as you create your annual goals and sales plans, when you create account strategies, and when you organize and plan your territories. An account profile form is a master tool that holds all of this together. – Dave Kahle is a leading sales educator and author of 12 books, including How to Sell Anything to Anyone Anytime. He can be reached at (800) 331-1287 or via www.davekahle.com.

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NEW Products

Low-Maintenance PVC Crosshead

With its automatic calcualtions, the TLM00s Laser Distance Measurer by Stanley makes the job estimates quick and easy, instantly calculating square footage, volume, and distance. The measurer is small enough to fit in a pocket and is a great tool for builders, remodelers, real estate agents, contractors, landscapers, painters, and DIYers.

The high-density PVC crosshead pediment profile from Versatex Building Products requires zero painting and very little maintenance. It is easy to cut, miter and install, and is compatible with standard millwork tools, techniques and materials. The moulding allows builders and remodelers to save labor and get better results. The product is offered in individually wrapped 16-ft. lengths and has a smooth matte finish.

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Simpson Strong-Tie’s new deck tension tie provides deck builders with a less invasive approach for attaching a deck to a home and meets newly updated code standards. The DTT1Z deck tension tie is a safe and timesaving alternative that eliminates the need to access floor joists from inside the house. Instead, it is fastened from outside the house.  STRONGTIE.COM (925) 560-9068

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See the Unseen

Dodge Hangers by Dodge Industiries improve seam quality and mudsill protection, while helping to reduce set-up and installation times. They can be attached to the tip of a rafter tail end to create a saddle that supports a sheet of OSB or plywood on the roof, allowing the material to be locked into place for a no movement nail-off.

The pocket-size thermal imaging camera from Seek Thermal plugs into most smartphones and converts heat energy into an image that can be seen with the human eye. The camera identifies leaky windows, drafty doors and insufficient insulation, resulting in overall energy savings. Users can also easily detect and record water damage, HVAC and electrical problems, clogged pipes and other unseen issues.

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Hanger Time

Reciprocating Saws

New curved reciprocating saw blades by Lenox have a unique curved design. T2TM technology and their titanium coating deliver up to twice the cutting life of standard Lenox blades. The blades are designed for wood and metal cutting.  LENOXTOOLS.COM (212) 812-6650

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May 2015

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Railing with Design and Durability

Symmetry railing from Fiberon is a state-of-the-art composite featuring a flat, drink-friendly top rail supported by a sturdy aluminum sub-rail. The unique reinforcement delivers added support and safety without any sagging. The product’s refined lines and elegant matte white finish complement well with any architecture, while its spanning capabilities up to 12 ft. enhance design flexibility and improve sight lines. Thanks to an intuitive bracket design, installation is quick and easy.  FIBERONDECKING.COM (800) 573-8841

Helpful Aids with Ultimate Grip

Clamping miters couldn’t get much easier than the MiterClip. The reverse cam mechanism applies pressure and holds the miter clamp firmly shut, while the notch keeps the tips of the miters neatly aligned. Once clamped, users can also rotate the clamp handle up and out of the way, providing access to nail the miter and move on to the next corner. The metal spurs hold the wood firmly and allow the clamp to be rotated while leaving minimal marks.  TRIMCLIP.COM (203) 873-0870 Building-Products.com

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Updated Prices at Your Fingertips

Authentic Stone Columns

Woodbrowser has introduced Rough Cut, the lumber market’s first delivered inventory pricing feature. As mills publish daily and weekly inventory lists with pricing based at the mill or to a specific location across the county, the feature adds the actual shipping cost to the inventory, giving purchasers a delivered price.

Molded from Civil War ledgestone, Ply Gem columns are indistinguishable from quarried stone. The modular system is designed for easy installation and is ideal for a variety of applications: free standing solid columns, pedestals, light posts, fence posts, sign posts, and more.

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May 2015

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Exterior Finishes

StoneBreaker gloves are equipped with knuckle protection, seamless shock-absorbing padding, and extra leather patches that provide advanced protection and comfort. The gloves strategically combine the highest quality goatskin with back-of-hand synthetics to maximize fit and breathability.

Made from cellular PVC, CertainTeed’s new Restoration Millwork Fascia Trimboard creates a distinctive, custom look for any style home. Available in ready-to-install natural white color, the fascia trim board can be painted to complement the exterior colors. Part of the INhanced trim line, it features a built-in return leg that works with a wide range of soffit materials to offer building professionals even more freedom of choice in exterior design.

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SO. CAL. GOLF Photos by The Merchant

WEST COAST Lumber & Building Materials Association hosted its So. Cal. golf tournament April 9 at Black Gold Golf Club, Yorba Linda, Ca. [1] Natalie Allen, Jean Henning, Ken Dunham, Charlene Valene. [2] Scott Middaugh, Craig Crafton, Mike Nicholson, Paul Corso. [3] Trip Malopsy, Bill Gaita. [4] Mark Davis, Ted Smith, Mike Claborn, Myles Ramsey. [5] John Seely, Gary Sell. [6] Kristen Discipulo, Debbie Quezambra, Keith Cotavelo, Joe McCarron. [7] Dan May, Larry Christensen. [8] John

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May 2015

Allen, Jon Hagen, Jack Butler. [9] Louie Mendez. [10] Doug Radestock, Mark Preece, Carl Henoch. [11] Ginny Fedrich, David Wolf, John Assman, Todd Beaman. [12] Tyler Smith, Chris Likert, Sean Fogarty. [13] Craig Larson, Tom Von Moos, Kevin Paldino, Dean Johnson. [14] Jim Nicodemus, Lance Ford, Frank Bader, John Pasqualetto. [15] Tom Manke. [16] Andrew Manke. (More photos on next two pages)

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SO. CAL. GOLF Photos by The Merchant

GOLFERS (continued from previous page) [17] Mark Rommel, Michael Cook, Joe Allotta, honoring their no-show fourth. [18] Todd Pollard, Mike Mische, Tim Dickison, Marty O’Hara. [19] Matt Manke, Scott Whitman, Steve Black, Ron Hillman. [20] Doug Willis. [21] Russ Rust, Danny Sosa. [22] Ed Brook, Marc Weaver, Alain Patton, Pete Meichtry. [23] Ken Schmitz, Monika Bartko, Dean Costello. [24] Bill Young, Tom Angel, Daniel Hines, Building-Products.com

John Neel. [25] Mo Shearer, Scott Hensley. [26] Todd Mumby, Sal Camarda, Mark Grube, Joe Honochik. [27] Ian Murphy. [28] Rich Langton, Mark Huff. [29] Rick Deen, Jim Russel, Chris Swanson, Danny Andrea. [30] Grant Pearsall, Pete Ganahl, Mark Ganahl, Sheldon Doss. [31] Brian Hurdle. [32] Randy Simons. [33] Jeff Bloch. (More photos on next page)

May 2015

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SO. CAL. GOLF Photos by The Merchant

WCLBMA GOLF (continued from previous two pages): [34] Jon Delangis, Jason Womack, Dave Miller, Ron May. [35] Fia Faumuina, Keith Lyng, Jen Burford, Dan Croker. [36] Joe DeRoest, Al Reed, Greg Scott, Frank Gonzalez. [37] Ryan Lauterborn, Vern O’Connor. [38] Mike Sambrano. [39] Ian Souza, Mike Shumaker, Barrett Burt, Bill Sullivan, Jean Henning. [40] Troy Huff, Chad Huffman, Andrew Nicassio. [41] Alex Uniack, Steve

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May 2015

Schroeder, Barry Pinneao, Thomas Stremlau. [42] Tony Campbell, Don Kavert, Sean O’Bannon, Steve Mitchell. [43] Jaqueline Palazzolo, Rolando Noriega, Walter Frederick. [44] Mike Melthan, Brad Satterfield. [45] John Lopez, David Abbott. [46] Max Young, Kelly Kisting, Marc Spitz. [47] Victoria Hoebel, Glenda DeFrange. [48] Sean Cummings, Jean Henning, Chris Huntington. [49] Dale Verseput. [50] Geoff Garner. Building-Products.com

ASSOCIATION Update Western Building Material Association will conduct a blueprint reading & material take-off workshop June 17-18 at Kincaid Learning Center, Olympia, Wa. WBMA executive director Casey Voorhees will be instructing the twoday workshop which will consist of discussion of residential construction methods, blueprint reading and material take-off. Attendees will receive hands-on experience figuring an actual set of working drawings. West Coast Lumber & Building Material Dealers Association hosts its annual associates/dealers golf tournament June 4 at Rancho Solano Golf Course, Fairfield, Ca. Mountain States Lumber & Building Material Dealers Association’s Best Practices webinar series will cover fraud prevention in a threepart series beginning June 25. Led by Terri Tucker, E-Cubed Consulting, the three-part series will discuss what constitutes fraud, who is most likely to commit fraud, and

which companies are most vulnerable. Parts two and three of the webinar will take place July 9 and July 23. International Wood Products Association saw Chris Connelly, Wood Brokerage International, pass the gavel to new president Craig Forester, Rex Lumber, during its 59th World of Wood convention in Las Vegas, Nv.

Transload Distribution Association holds its annual conference May 20-21 at Westin Hotel Downtown New Orleans, New Orleans, La. Composite Panel Association hired new president Jackson Morrill.

Skyreach Prepares for Sustained Growth After three years of aggressive growth, Skyreach L&S Extrusions Corp. is transitioning to a “lean operation” phase, focused on on operational efficiency, quality improvement, and customer care. During its three-year “start-up” phase, Skyreach developed five new patio door systems, five new open window systems, two fencing systems, numerous custom profiles, and opened two locations in Canada and two in the U.S. (Rancho Cucamonga, Ca., and Chicago, Il.).

PST is located in Weed, CA, the historical heart of the West’s timber country, ideally situated on Interstate 5 to service all of California and the Western U.S. • NatureWood® brand ACQ treated products • Advance Guard® brand Borate treated products • TSO (Treating Service Only) available. • PST is ALSC quality assured by Timber Products Inspection Agency (TP) complying with AWPA Standards and the CheckMark Program.

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New board members are Hugh Reitz, UCS Forest Group, and Lenny Shibley, Northwest Hardwoods. Next year’s World of Wood is set for April 6-8, 2016, at the JW Marriott, Austin, Tx.

The next three years should be marked by growth and new product introductions at a more sustainable pace. To facilitate the transition, Skyreach has restructured its management team and will streamline its product offering mix, distribution channel strategy, and geographical territory coverage. The moves should result in a more efficient supply chain, including better inventory control, better delivery accuracy, and reduction of operating costs.

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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

“Focused on the future with respect for tradition” May 2015

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The Merchant Magazine

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IN Memoriam Jeffrey Franklin “Jeff” Hodge, 63, retired pine sales manager for Pope & Talbot, Portland, Or., died March 20 from complications of liver cancer. He entered the lumber industry in 1973, working in the sawmill for Cone Lumber, Goshen, Or. He became a lumber sales manager for GeorgiaPacific in 1978 and joined the sales team at Pope & Talbot in 1985. He rose to sales manager for the Spearfish, S.D., mill in 2001, until P&T went bankrupt in 2008. He then returned to school to earn his MBA from University of Oregon, before spending two years in forest products software sales as a senior account executive with PacSoft. Donald Leroy Delaney, 78, coowner of Montana Lumber Sales, Missoula, Mt., died April 12 in Missoula. With his brother Bob and mother, Ella, he helped take over the family sawmill business when his father, Paul, died in 1952. They expanded the company to five lumber mills producing 100 million bd. ft. annually, before selling to Champion International. In 1974, the brothers launched a

joint venture with Georgia-Pacific, Montana Pacific International, developing timberlands and building a mill in Roundup, Mt. He served on the board of directors for Timber Products Manufacturers Association and the State of Montana Forestry Board. Charles Edward “Scotty” Scott, 84, former owner of Amador Lumber, Martell, Ca., died April 17 in Jackson, Ca. He served in the U.S. Army during the Korean War, attaining the rank of corporal. His lengthy lumber career included 12 years owning his own business in the 1960s to the 1970s. Fred McLain Hamlin, 85, former sales manager for Duke City Lumber Co., Albuquerque, N.M., died March 22 from acute respiratory disease. He spent 20 years with Duke City until it closed in the early 1990s. He then worked for Bates Lumber and Plateau Lumber, before retiring. Willis Monte Revel, 97, longtime salesman for Denver Reserve Building Supply, died April 21 in Longmont, Co. During World War II, he served

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

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The Merchant Magazine

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May 2015

Arthur Edwin Bond, 88, longtime wholesale lumber broker in Cloverdale and Santa Rosa, Ca., died April 4 in American Fork, Ut. He served in the U.S. Army, training to be a pilot, during World War II. Joseph C. Abraham, 67, former CFO of Monarch Building Supply, Kahalui, Hi., died of a heart attack April 1 in New Rochelle, N.Y. He was a U.S. Army veteran of the Vietnam War. Edward G. “Ed” King Jr., 84, former APA staffer, died March 24. He spent 11 years with American Plywood Association, Tacoma, Wa., before joining National Forest Products Association, Washington, D.C., in 1970. In 1988, he started an industry consulting business, Wood Construction Technologies, McLean, Va., until retiring in 2013. He received the American Society for Testing & Materials Award of Merit and honorary title of Fellow for outstanding leadership in the wood products industry.

HELP WANTED

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FOR SALE

with the U.S. Army, becoming a POW in Germany. He retired from Denver Reserve in 1983.

EXPERIENCED TRADER WANTED Where: Beautiful Bend, Oregon Why: Because the timing is right!! When: NOW… Summer is coming Who: Industry respected wholesale company What: We are looking to add experienced traders to our team in Bend, Oregon. We are a progressive wholesale lumber company that can provide support, industry experience second to none, and the tools to assist in driving your professional and personal growth in a fantastic work environment in one of the best settings in the West in Central Oregon. We have one of the best commission splits in the industry, along with new offices in downtown Bend. If you have experience and are looking to make the move to a positive and growth-inspired company please contact us. We are poised to take advantage of future market growth. The time is right for YOU to make a change for the better!! Pelican Bay Forest Product has room to grow. We provide excellent medical and dental benefits, knowledgeable experienced teammates along with the best place in the west to live and raise a family. Applications will be held in confidence. Contact us today: P.O. Box 6958, Bend, Or. 97708 Attn: Heath Grafton Email: heath@pbfp.net Phone: (541) 550-4396.

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DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend. Southern California Hoo-Hoo Club – May 15, 6th annual Don Gregson Memorial Golf Tournament, San Dimas Golf Course, San Dimas, Ca.; (323) 559-1958; www.hoohoo117.org. Do it Best Corp. – May 16-18, spring market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com. Hardwood Plywood & Veneer Association – May 17-19, annual convention, Monterey Resort & Spa, Monterey, Ca.; (703) 4352900; www.hpva.org. Transload Distribution Association – May 19-21, conference, Westin on Canal, New Orleans, Il.; (503) 656-4282; www.transload.org. Tacoma-Olympia Hoo-Hoo Club – May 20, board meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. Los Angeles Hardwood Lumberman’s Club – May 23, day at the races, Santa Anita Racetrack, Arcadia, Ca.; (626) 445-8556; www.lahlc.net. Composite Panel Association – May 31- June 3, spring meeting, Hyatt Regency Coconut Point, Bonita Springs, Fl.; (703) 7241128; www.compositepanel.com. West Coast Lumber & Building Material Association – June 4, golf tournament, Rancho Solano Golf Course, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org. National Lawn & Garden Show – June 9-11, Embassy Suites, Dallas-Frisco, Tx.; (888) 316-0226; www.nlgshow.com. Forest Products Society – June 10-12, convention, Georgia World Congress Center, Atlanta, Ga.; (855) 475-0291; www.forestprod.org. Western Wood Preservers Institute – June 14-16, summer meeting, Teton Mountain Lodge, Teton Village, Ca.; (360) 693-9958; www.wwpinstitute.org. Western States Roofing Contractors Association – June 15-17, convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com. Tacoma-Olympia Hoo-Hoo Club – June 17, general meeting, elections, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. National Retail Federation – June 23-25, loss prevention conference & expo, San Diego Convention Center, San Diego, Ca.; (800) 673-4692; www.nrf.com. PCBC – June 24-25, San Diego Convention Center, San Diego, Ca.; (800) 956-7469; www.pcbc.com. Los Angeles Hardwood Lumberman’s Club – June 27, Wild Goose dinner cruise, Newport Beach, Ca.; (626) 445-8556; www.lahlc.net. Tacoma-Olympia Hoo-Hoo Club – June 27-28, building material sale, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. Door & Hardware Institute – June 28-29, executive summit, Hilton Anatole, Dallas, Tx.; (703) 766-7026; www.dhi.org. Mountain States Lumber & Building Material Dealers Association – July 14, golf tournament, The Ranch Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org. Southern California Hoo-Hoo Club – July 15, speaker meeting, San Dimas Canyon Golf Course, San Dimas, Ca.; michael.nicholson1@verizon.net. Tacoma-Olympia Hoo-Hoo Club – July 15, board meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. West Coast Lumber & Building Material Association – July 1617, 2nd Growth summer conference, Omnni Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca; (800) 266-4344; www.lumberassociation.org. Building-Products.com

ADVERTISERS Index Accoya [www.accoya.com] ...........................................................21 AGS Stainless Inc. [www.agsstainless.com/mmag] ...................63 Allura [www.allurausa.com] ..........................................................31 AZEK [www.azek.com].....................................................................5 Big Creek Lumber [www.big-creek.com] .....................................60 Blue Book Services [www.bluebookservices.com] ....................64 Boise Cascade [www.bcewp.com]................................................32 B.W. Creative Railing Systems [www.bwcreativerailings.com] .26 Capital Lumber [www.capital-lumber.com]..................................62 Collins Products LLC [www.collinsco.com]......................Cover IV CT Darnell [www.sunbelt-rack.com] .............................................45 Deckorators [www.deckorators.com]...........................................15 DeckWise [www.deckwise.com] ...................................................67 Diacon [www.diacon.com].............................................................11 Digger Specialties Inc. [www.westburyrailing.com] ...................57 DMSi [www.dmsi.com] ...................................................................43 Eco Chemical [www.ecochemical.com] .......................................42 Fasco America [www.fascoamerica.com]....................................65 FastenMaster [www.fastenmaster.com].........................................3 Filler King [www.fillerking.com]....................................................62 Fontana Wholesale Lumber [fontanawholesalelumber.com].....66 GRK Fasteners [www.grkfasteners.com].....................................28 Hoover Treated Wood Products [www.frtw.com]........................53 Huff Lumber Co. [www.hufflumber.net] .......................................24 Humboldt Redwood [www.getredwood.com] ..............................24 Idaho Forest Group [www.idfg.com] ............................................51 JM Thomas Forest Products [www.thomasforest.com] .............66 Jones Wholesale Lumber [www.joneswholesale.com] ..............34 Keller Lumber Co. [www.kellerlumbercompany.com] ................64 Kop-Coat [www.kop-coat.com] .....................................................23 Norman Distribution [www.normandistribution.com].................67 North American Wholesale Lumber Assn. [www.nawla.org] .....37 NyloBoard [www.nyloboard.com].................................................25 Pacific States Treating ...................................................................71 Pau Lope Co. [www.paulope.com]................................................56 Pelican Bay Forest Products [www.pelicanbayfp.com]..............71 Pennsylvania & Indiana Lumbermens Mutual [plmilm.com]......39 PPG Architectural Finishes [www.ppgac.com] ...........................47 Railing Dynamics [www.rdirail.com] ..............................................6 Redwood Empire [www.redwoodemp.com] .......................Cover II Regal Ideas [www.regalideas.com]...............................................30 RFP Lumber [www.rfplumber.com] ..............................................22 Roseburg Forest Products [www.roseburg.com] .......................41 Simpson Strong-Tie [www.strongtie.com].........................Cover III Siskiyou Forest Products [siskiyouforestproducts.com]...........35 Skyreach L&S [www.skyreachls.com]..........................................61 Snider Industries [www.sniderindustries.com] ...........................55 Sunset Moulding [www.sunsetmoulding.com]..............................8 Sure Drive USA [www.suredrive.org] ...........................................55 Swanson Group Sales Co. [www.swansongroupinc.com].........49 Universal Forest Products [www.ufpi.com] .................................29 Viance [www.viance.com] .....................................................Cover I Western Forest Products [www.westernforest.com] ....................7 Weyerhauser Co. [www.woodbywy.com/distribution]................33 Woodway Products/LWO [www.woodwayproducts.com] ..........36 World Forest/Walk Green [www.walkgreenproducts.com].........13 Yakama Forest Products [www.yakamaforestproducts.com]....57

May 2015

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The Merchant Magazine

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FLASHBack 75 Years Ago This Month Launched in 1922 as The California Lumber Merchant by colorful publisher Jack Dionne, The Merchant has covered and been a key part of the West Coast LBM industry for closing in on a century. So, this month we are launching a new feature, in which we reprint milestones in our publishing past, 50 years ago, 75 years ago, and, in short order, 100 years ago. The look back will show you just how far our industry has come—and how, in other ways, little has changed. As The Merchant reported in May 1940…

• Oakland Hoo-Hoo Club No. 39 held its 8th annual Reveille, drawing an astounding 575 guests. Legend has it that attendees at such events could be prone to hearty partying and heavy drinking. But industry activities could also be more sophisticated. Days after the Reveille, about a dozen lumbermen, along with their wives and friends, gathered at the North San Juan home of Adeline Merriam Conner, “Poet Laureate of the lumber industry” and wife of former prominent lumberman Fred Conner. The annual spring round-up featured an opening poem by Mrs. Conner and a picnic lunch, followed by “a program of readings, poems and recitations in which everyone present took part.” • T.M. Cobb modernized its Los Angeles office. Today, the distinctive Art Deco-style building is a furniture warehouse. • California Panel & Veneer Co., Los Angeles, (today’s Cerritos, Ca.based CalPanel) expanded into insulation, after being appointed Southern California distributors of National Gypsum’s Gold Bond insulation boards and hardboards. • Alberta Hill, the daughter of Al P. Hill, a retail lumberman with yards in Albany and Richmond, made the news. The “pretty University of California co-ed” was asked to film a screen test at the MGM studio during an upcoming visit to Los Angeles to attend the convention of her sorority, Pi Beta Phi. • “The lumber schooner Daisy Matthews, bound from Coos Bay to San Francisco with a cargo of 1 million feet of lumber, crashed on the rocks of Trinidad Head, 17 miles north of Eureka, after having been abandoned earlier in the day. “Capt. C.J. Carlsen and his crew of 23 were rescued by a Coast Guard cutter and the steamer Lumberman.”

MACKLANBURG-DUNCAN CO., Oklahoma City, Ok., advertised a growing range of building accessories, including trim, weatherstripping, caulk, and screen door grilles. The company, today known as MD Building Products, is celebrating its 95th anniversary.

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The Merchant Magazine

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May 2015

• Clarence Dean Johnson, 74, president and founder of the historic C.D. Johnson Lumber, passed away at his home in Portland, Or., May 2.

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