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First, a belated Happy New Year to you all from us all here at The Merchant Magazine. I hope you all had a chance to relax, enjoy time with your family, and reflect upon the old year as we enter the new.
When readers meet me, they often ask me how I decide what to write about in my column. Truthfully, for me it is not the easiest thing I do, but I normally get my inspirations from my customer calls and trade show visits. I try to find out what it is that is keeping people up at nights or on experiences good and bad in my working life that reflect what I am reading or hearing about from friends in the industry.
I must say, as I started to think about what I would write in this column this month, for the first time ever in my time here, I pulled out a previous column-last January's-and I guess I could just write ditto. I wrote last year that 2001
promises to be a pivotal year-well, that was certainly true, and ditto for 2008. I wrote that 2006 was a Jekyll and Hyde year, and that there was great economic debate as to where it went from there in2007. Ditto for 2008.
At the end of 2006 and beginning of 2007 there was great anticipation that the year would turn in the second half, and, of course, that did not happen. And while I do not hear that same anticipation this year for 2008, I must say I am still hopeful that the turn upwards will start this yearever the eternal optimist. I am hearing from some of you of some really good financial performances-proving that, for some, business is still there to be had, and many are saying quietly that prices may have hit bottom. I am seeing wholesalers and retailers that, while not arming themselves with trucks of inventory, are looking at new products, particularly for the remodeling sector. My clients seem to be announcing new product introductions on a regular basis these past few months. So, the fundamentals are being put in place for the turnaround. Later in this issue, you will read about the M&A activity in our industry. It is clear that this will continue in 2008, and that is also going to throw a lot of balls up in the air and create sales losses for some companies and market opportunities for others.
The only question always for me to answer is: how do I position or reposition my company for the inevitable changes? I know as many of you wrestled last quarter with your annual budgets for 2008, you were mostly working with the challenge thrown at you of how to do more with fewer resources rather than how to get the company ready to grow again. While I have great admiration for those who are able to achieve that-it takes a lot of management skill-the reality is that for the two companies that can, another eight companies continue downwards, and this is where I see the souls of companies being torn apart.
On the other hand, this can offer a great market opportunity. I have in the past deliberately strategically positioned my companies against companies that I knew were in trouble-never being negative towards them, but knowing that their customers were probably not getting the same levels of service and maybe product quality that they were, and old Joe, the sales rep for 30 years, was now out on his ear, and therefore many would be looking for new suppliers. I find that too many companies just do not keep enough contact with prospects to be in front of them with advertising, P.R., and other marketing initiatives. Plan for the turnaround now.
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Lastly, I would like to thank all those who sent in their business cards in both our publications in support of the Susan G. Komen Cure for Breast Cancer (see pctges 63-65). My family has been greatly impacted by this insidious disease, and even more so since I originally chose this charity a couple of months back.
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The facts are clear. Every two minutes a woman is diagnosed with breast cancer, and today one in seven women will get it compared with one of 20 in 1960. It is an epidemic, but with early detection, the good news is that the five-year survival rate is 96Vo. Yet, some l3 million U.S. women who should be having mammograms are not. So when you read this I hope you will either go and get one or discuss with your partner if she is due for one. And just let me add that one of 100 breast cancer patients are now male, and this figure in increasing. The need for research continues and it is my great pleasure to support this charity. Our donation with the support of the business card advertisers is $3,450. I thank them sincerely for the support.
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By Nicholas V. Beare
mergers & acquiY Y sitions activitv reached a record $3.8 trillion over the first nine months of 2001, according to Dealogic.
Much of the activity was directly attributed to private equity interests. which raised nearly $198 billion worldwide during the year. Flush with cash, private equity firms like Bain Capital, Carlyle Group, and Clayton, Dubilier & Rice entered the LBM industry, buying both large and small companies, culminating with August's $8.5 billion purchase of HD Supply. Yet, this transaction seemingly may have signaled the end of a private equity run in the industry-as evidenced by the deal price reduction.
The record year-to-date M&A volumes are deceptively buoyed by an extraordinary first half of the year. In the third quarter, the credit crunch left a noticeable impact on worldwide deal volumes, which were off 427o to $l trillion compared to $1.7 trillion in the second quarter. Over the past few months, the residential housing market has continued to soften, with no general consensus on the timing of a rebound. Sub prime market concerns
have led to an overall tightening in the credit markets. Facing such strong headwinds, private equity has reigned in its spending.
However, this reticence by private equity has given more power to strategic buyers, who are less constrained by timing and credit issues. In 2008 expect to see plenty of transactions unfold, as small building material companies are acquired by strategic industry players.
For the past five years, cash-flush private equity firms have aggressively purchased companies in "stable" industries-ranging from healthcare to utilities. This year alone, some 7O7o of deals for U.S. publicly traded targets have been all-cash transactions, according to FactSet.
To highlight a small sampling of deals in the building products industry, consider: In 2003, Kenner bought Atrium. In 2004, Caxton-Iseman picked up PlyGem. In 2005, KKR acquired Masonite. ln 20O7, Graham Partners bousht out FlexTrim and
Schneller, while Bain Capital Partners scooped up American Standard.
Until mid-2007, strategic buyers were losing out in auction after auction, as multiples were pushed to new heights by private equity with bulging coffers and access to credit. Now, the tables are turning. With financing markets in disarray, private equity buyouts are being delayed. Many private-equity firms will face difficulty closing deals until credit markets calm and banks sell the debt stockpile on their balance sheets.
Strategic buyers now have an advantage in vying for deals, using stock, cash or a combination to pay for acquisitions. They also have the ability to generate synergies by eliminating expenses to justify a higher price tag. Large companies are always on the lookout for acquisitions that generate additional growth and margin. These sophisticated buyers also desire companies with established brands, new territories/distribution channels, and locations that enhance their existing operations. Now the opportunity is ripe, as many complementary companies are actively seeking or being forced to consider exit strategies.
By the beginning of 2007, soft market conditions had filtered through many LBM companies' financial results, with earnings announcements outlining losses of anywhere from 47o to 407o.In this environment, companies have begun to pare back, ranging from the complete shut-down of family-owned businesseS like Grand Rapids Sash & Door to plant closures at Weyerhaeuser and L-P.
Other companies are divesting ancillary product lines. Most notable was Home Depot's divestiture of HD Supply, to reposition efforts on its (Please turn to page 53)
By Calvin Froedge Creative Losic Media
\ZOUR heart sinks. How is what |. you're looking at still your website?
Maybe you haven't had time to update things in a while. Maybe you had a guy who was working on it, but he's moved on to other things. Maybe it just always seemed unnecessary; you've got a lot more important things to do, right?
For whatever reason, many lumber and building material dealers, distributors and manufacturers have decided to leave their company website on the backburner. Need a few reasons to move your site up the priority list?
You're giving promising sales
prospects a reason to be hesitant about doing business with your company. You wouldn't hand someone a coffee-soaked business card on floppy card stock, would you? Your website may not be the reason you make the sale, but do you want it to be among the reasons you lost it? The standard to which your website must rise to is debatable, but there are some rules that you simply must follow:
All company information must be up to date. If you put your website up five years ago and you haven't updated it since. your customers are seeing a five-year-old brochure.
Put pictures of your products online. There is no reason you can't give your prospects an easy way to learn more about you and your offerings at their convenience.
Don't use animated .gifs or brightly colored backgrounds. If you can't read the text on your website without straining your eyes, you need to make some changes.
. Code using XHTML/CSS. Not only does this reduce load time and bandwidth usage and increase search engine visibility, but it also ensures your content will be more readable on mobile devices.
. Make sure your website renders properly in multiple browsers. Some methods of creating websites work in Internet Explorer, but not in Firefox, a popular browser that nearly 40Vo of all Internet users now browse with, and vice versa.
tent practices your website must now follow in order to meet accessibility, spam and privacy standards. Disabilities rights advocates are actively filing lawsuits against websites that do not meet standards, and the rules are becoming strict with government, credit card processors, and insurance companies about what you can and can't say on your website. What should be your top legal priorities?
Your website should be coded using accessible XHTML/CSS. Many websites built even two to three years ago still use a coding method called tables, which is difficult for users with devices called screen readers to utilize, as well as being bad general practice. XHTML/CSS allows you to insert special tags to help disabled users navigate more easily.
Your website claims should be closely evaluated, and you should check with your insurer and lawyer to make sure you aren't at risk. Anything you put in print is legally binding and could be grounds for lawsuit or loss of insurance coverage.
You should offer a privacy policy and an opt-out (a way of letting users tell you they would no longer like to receive emails from you) if you provide an email newsletter. Privacy and anti-spam advocates could make you the target of the next class-action suit at worst, and at best, you're giving skeptical visitors a reason to question your legitimacy.
FAVORABLE IMAGE and easy accessibility should be lwo aims for your company's website. /James Ritter Lumbels site created bv Creaiive Logic Media.)
Your lawyer would want you to. There are numerous codine and con-
Everybody's doing it. Nearly 807o of U.S. adults are now usins the
Internet on a daily basis (and 207o worldwide), you can no longer get by with assuming that your customers just aren't bringing their business online.
Seriously. The Internet is the only place you can see the pie growing exponentially every year. There are now nearly 2 billion internet users worldwide.
As online transfer, banking and loaning becomes more and more predominant, transferring large sums of money online will become common. Would you feel safe buying from your website?
There are so many cool things your website could do for you. Modern websites can perform a lot of amazing functions. Everything from professional video that tells a story while delivering a pitch, to an online suite that tracks your projects, sales stats, accounts, and lead generation, can now be delivered with your website.
You can easily put your entire sales process online. Think about buying a $400 digital camcorder and getting video interviews from your top sales guys and company founders. Think
about filming your product line and your facilities. Websites are no longer simple address and phone number placeholders-they can be used in allnew ways to augment your lead acquisition process and, more importantly, they can carefully illustrate the points you try to get across when making your pitch.
Your website can help you gain positioning. Businesses in every industry are getting new customers, learning more about their market and industry, and grabbing top search results because of their involvement in the online arena. Starting a blog or submitting regular articles can help you gain footing as an industry frontrunner by putting your words in front of both your competitors and your prospects.
Your website can deliver data feeds to describers. Imagine being able to provide your customers with 1007o accurate, up to date product counts, available on demand. Imagine being able to keep your entire email list instantly in the loop on new updates and promotions.
Lead generation can find you new prospects within weeks. Not only can you utilize traditional online market-
ing techniques such as search engine optimization and paid advertising, but you can also use your website and numerous online programs to receive hot sales leads for a small price.
It's not too late. The lumber industry as a whole is a few years behind the curve, and if you start giving your website the attention it needs now, you can be among the first to jump ahead.
When you do decide to revisit your website, do things right. Think about the content, offerings, and functionality on the site in context with what you are trying to accomplish. If you're too busy, delegate the responsibility to a creative, dedicated co-worker who will think about the decisions he or she makes. Think about what would make your website more useful to your customers and your company and make sure it gets done. Can you still allow your site to collect dust?
- Calvin Froedge is a professional web developer and lead analyst for Creative Logic Media, Cookeville, Tn., managing more than 100 clients, including LBM companies. He grew up amid the materials handling and lumber manufacturing industries. Contact him at (93i') 239-5520 or by email at c alv in@ c reat ive lo Ric me dia. c o m.
At PLM, we understand that you need an insurance company with property and casualty insurance products and services that you can trust. For over 100 years, our experts have been providing quality claims and risk management services to the lumber, woodworking and buifding material industries. Remember, "you get what you pay tor." We understand wood. We know your business... because it's our business too.
lf you're looking for quality and value from your insurance provider, please contact the PLM Marketing Department at 8OO.752.1895 or log onto www.plmins.com.
Yesterday, Today, Tomorrow... grow knowing you're covered.
lohn K. Smith, CPCU President and Chief Executive OfficePennsylvania Lumbermens Mutual Insurance Company
One Commerce Square, 2OO5 Market Street, Suite 1200 Philadelphia, PA 19103
By Scott Yetter Voxware
fN TODAY'S evolving marketlplace. wireless voice technology can help building material companies better manage their warehouse and distribution operations. The technology operates through the use of wearable computers and headsets, which allows a running dialogue with the worker as tasks are performed.
To decrease product delivery time and increase competitiveness, businesses are running more regional warehouses and distribution centers than ever before. However, with a greater number of warehouses, there are increases in warehouse worker injuries-and decreases in accuracy
and productivity rates. Many distribution centers are assessing their warehouse management programs and searching for cohesive methods to help reduce injuries, help increase accuracy rates, and improve working conditions overall.
Voice technology is gaining traction forjust these reasons. It's helping increase efficiencies and improve bottom-lines, while improving working conditions and retaining trained employees.
One of the most attractive features of wireless voice technology is the fact that it relies on wearable computers instead of hand-held devices. Because it's hands- and eyes-free, voice technology allows workers who focus on the manual handling ofproducts-and those in demanding physical environments-to improve their safety conditions, accuracy rates, productivity rates, and, in many cases, morale. As a result, labor retention rates increase-a tough feat in the warehouse environment.
Voice-enabled warehouses allow workers to get their job done with their eyes and hands free so they can better concentrate on making sure their orders are correct. In an environment where an accuracy mistake can be a deal breaker, voice technology is changing the landscape. In many cases error rates drop by 507o, which translates into accuracy rates as high as 99.98Vo. These errors, including picking the wrong quantity or product, often have a major negative impact at the store level in terms of serving the customer. With increased accuracy rates also comes a higher productivity rate.
safety to the next level. Distribution centers are always assessing their warehouse safety programs and searching for methods to help reduce severe injuries, lower the return-towork rate, and decrease workers' compensation claims. Voice-based warehousing takes care of everything. Workers now can do their jobs handsfree and without any distractions. In fact, after implementing voice software, one company reported it virtually eliminated accidents on the floor while reducing workers' compensation claims costs by more than'7OVo. Even more impressive, these costs were reduced even though the total workforce increased by approximately 257o.
Another benefit is that workers love the technology. Voice technology has taken a repetitive job and mdde it more fun and interesting. Many workers appreciate voice technology's sense of interaction, as they receive and respond to verbal instructions through their headsets. In addition, workers can ask the system for performance updates throughout the day-allowing them to keep track of how they are faring against their daily goals and targets.
increases accuracy and productivity.
Voice technology is also taking
Many companies have begun to implement worker incentive plans to reward warehouse workers for higher productivity and accuracy ratessomething they couldn't offer before voice implementation. The incentive programs are set up in accordance with worker pick rates and usually result in additional compensation for hitting a certain number. Because these types of programs didn't previously exist in the warehouse environment, workers feel more valued by
their companies and organizations. An added bonus is that workers complete tasks more efficiently and accurately because they are trying to reach their bonus.
Today, voice technology is more affordable than ever, largely because of the shift from proprietary software to open, service-oriented, standardsbased software. Basically, standardsbased software is a collection of services that communicate with each other and address specific business or technical problems. The services are self-contained and do not depend on the context or the state of any other service. The system is designed for the type of environment in which voice operates: distributed systems in the distribution center where many small, wearable computers are networked to back-end applications in order to drive work processes.
The big idea behind standardsbased software is that services can be independent of each other, but can be combined to accomplish a business objective. In the warehouse, the same voice services can be assembled in different ways to voice-enable different processes in the distribution center. Also, since standards-based soft-
ware is based on commonly available, internationally recognized standards, upgrades can be accomplished much faster and more cheaply because the pool of developers who can work with the technology is greatly expanded.
Voice technology is becoming an increasingly important part of warehouse operations-and for good rea-
reduce
son. It's the smart choice for any company, in any industry, that deals with the manual handling of products.
- Scott Vetter is president of Voxware, which provides sentice-based software for voice-activated warehouse activities: picking, receiving, replenishment, and overall inventory management. He can be reached at syette r @ voxrrare. c om
VOICE-ENABLED warehouses can improve safety,
workplace accidents, and lower workers' com0ensation costs.
ceilings and the popularity of low-E glass, 25Vo-35Vo of the energy used in homes and buildings is wasted due to inefficient glass. So, it should come as no surprise that glass is responsible for more than 7O7o of the total carbon emissions in the U.S. annually and is a major contributor to global warming.
technology expected to provide minimal performance improvement, the focus has now shifted from coatings to cavities. Just as the introduction of single-cavity insulated glass provided a breakthrough in performance beyond monolithic glass, the introduction of multi-cavity constructions, consisting of two or even three insulating cavities, is providing the next performance breakthrough for insulating glass.
DROPOSED revisions to the
|. Department of Energy's Energy Star glass performance standards scheduled to debut as early as 2009 should make clear that generic low-E glass no longer represents a level of energy efficiency required to "transform the market", a key charter of the agency's Energy Star program.
Building material dealers interested in providing their customers with glass window and door products that offer maximum energy efficiency need to know that not all glass is equally effective as a green construction and renovation product. They will benefit from increased awareness of alternative glass technologies that are superior to generic low-E insulating glass and available now.
Because generic low-E glass provides maximum insulating performance of about R-4 in a world in which R-19 insulated walls are the norm, there's a dramatic performance gap between what low-E glass provides and what green building practices promise in saving energy and reducing carbon emissions.
Despite heavily insulated walls and
The truth is that low-E glass thermal performance has reached practical limits. A low-E coating reflects heat, reducing heat transfer between panes of glass and thereby improving insulation performance. The "E" in low-E, which stands for emissivity, is the ability of a surface to radiate energy. Low-E coatings are rated for the amount of heat they radiate-the lower the number, the less heat is radiated and the better the insulation performance of the glass.
Coated glass is commonly available today with emissivity ratings below 0.03. Lowering emissivity from 0.03 to 0.00 will have a negligible incremental improvement on window performance. Clearly, further improvements in glass thermal performance will not come from improvements in low-E coatings. Additionally, low-E coated glass has become a minimum performance baseline and no longer represents a path to "improved" energy performance. The incremental performance benefit of using low-E glass \s lero, because it is already assumed as a required product.
Generic low-E insulating glass, consisting of two pieces of coated glass separated by a sealed, gas-filled air space (or cavity), achieves a maximum thermal insulation value of R-4. With further advances in glass coating
Two alternatives to generic low-E insulating glass are currently available that can meet the new Energy Star glass performance standards. One is triple pane glass, consisting of three panes of glass and two low-E coatings. The good news is that by using a third pane of glass to create a second insulating cavity, triple pane low-E glass improves generic low-E insulating glass performance by about 507o, from R-4 to R-6. The bad news is that triple pane glass is 33Va heavier than standard insulating glass. requiring stronger window framing and increasing cost accordingly. The additional coated glass can also reduce visible light transmission by 2OVo or more, reducing the comfort and productivity benefits of natural day lighting.
A superior alternative consists of suspending a low emissivity and solar reflective film inside of an. insulating glass unit. Without the weight disadvantages of a third pane of glass, film can create two, three or even four insulating cavities that maximize light transmission and provide conservation performance ranging from R-6 to an amazing R-20 to meet the unique requirements of both commercial and residential new construction and renovation projects.
Such internally mounted film does not replace low-E glass. Rather, it leverages the benefits of film-based and glass-based technologies to create a lightweight, multi-cavity insulating glass that offers a new level of performance. Most units fabricated today utilize low-E coated glass to minimize solar heat gain, while using lightweight film to maximize insulation performance, block UV radiation, reduce noise, and increase occupant comfort more effectively than low-E glass alone.
Film-based, multi-cavity insulating glass is tomorrow's state-of-the-art window glass, available today.
- Bruce Lang is v.p. of marketing & business development at Southwall Technologies, Palo Alto, Ca. He can be re ac he d at blanp @ s o uthw all. c om.\ZOU'D think you were buy- I ing a car when you try to find the right trim board program for vour lumbervard.
How complicated can this be? Give me a board that looks great and performs in the field, period. Oh, yeah, and make sure the price is right. And, um, how's the supply? Are we going to run out'l I can't run out. Then I look foolish and the fill-in product probably won't match up right. And what is this new substrate anyway? I've never heard of it. You're treating the board with what chemicalt, again? CCA never hurt anyone and look what happened. How about tight grain, old growth, cold climate growth, plantations, dimensional stability, dollar exchange rates, turnaround time, time on the water, grading, defects, short lengths. glue types. coating system, VOCs, FSC, SFI, oil primer vs. latex. one coat vs. two coats vs. two passes vs. three passes, Gesso vs. exterior, "green" coatings?
Okaaaayyy! Can I go now? | need to relax a bit. I think I'll buy a car instead; it's easier.
How about breaking this problem down a bit? We'll talk about substrates, coating systems, and supply sources. Substrates first. There's pine, cedar, fir, spruce, mahogany, PVC, and "other." Pine breaks down into eastern white pine, Idaho white pine, ponderosa pine, Scots pine, radiata pine (Monterey), Elliotis pine (slash), taeda (loblolly). and parana pine (Araucaria Angustifulia, so it's not really pine, but it's a tall, straight
conifer). The first three are from North America. Scots pine is often from Europe or Western Russia. Radiata is grown primarily in Chile and New Zealand. The last three are also from South America, usually Brazil or Argentina.
Of the bunch, eastern white pine has the most decay resistance, naturally inherent to the species. Radiata has the smoothest finish, as it is hard and dense. Most of the South American pines are not typically decay resistant. Primers and coatings that are technically formulated for these species combined with proper installation will help meet consumer expectations for
durability.
In addition, some manufacturers have begun using treatments to help solve this shortcoming. The most common one is LOSP or Light Organic Solvent Preservative. It is increasingly common in the market today, but there appear to be a few issues looming with respect to the chemicals used. It is a growing story in New Zealand from where much of the treated products are coming. Since I am not a chemist, you can check out www.nzherald.co. nz yourself and type "LOSP" into the search box to see what's going on.
PVC (polyvinyl chloride or "vinyl") has been a huge success and appeals to certain builders willing to spend a lot of money to prevent rot. It's also great if you want to twist your trim board into a pretzel. As a wood guy, I'll give you my quick assessment: The bad thins about wood trim boards is that they could rot. The good thing about wood trim boards is that they will rot...if installed wrong. Since there are many examples of 100-year old wood trim that is not rotten, we know wood lasts. If it does rot, look to the installation. If PVC is installed wrong, you won't know until the house rots on the inside-a much bigger problem. If you intend to install it correctly, why not just use wood? Wow, am I biased! My house is 150 years old, and I'm a wood guy. What can I say? How about cedar? Expensive and
(Please turn to page 47)
PrimeTECH
A T POULIN Lumber, they reward mistakes. How dumb ll.can you get. you're guffawing? Uh-uh. Make that, how smart?
It's a thread in the skein of innovative staff-enhancement practices instituted by founh-generation president and c.e.o. Cory Poulin, who oversees three operations serving the small towns of Vermont. Maybe they don't call it "H.R." up there, or even "Employee Retention." Maybe they're just viewed as guideposts along the trail to Cory's stated goal: "To be the employer of choice."
And when you nail that mission, you'd better believe you've also cornered another vital one: supplier of choice for the area's pros and townies. And it's thanks, at least in small part, to rewarding mistakes.
"We have a periodic contest," explains Cory, "and award $20 for the biggest one. The idea is not to be ashamed of having made an error-such as dumping a load of block in a rush, which broke them.You save others from committing the same error." Just as important, "people need to be open and understand that mistakes do happen; otherwise, they'd tend to hide them."
Okay, it provides a good laugh, too, and that's a good thing. Even better, "it furthers better work relationships and low turnover," says Cory of his 75-strong labor force. On the more serious side, employees also receive an incentive bonus figured on the company's annual performance, based on net profits which, says Cory, "allows everybody to make a difference. They've got a stake in the outcome.
"We praise publicly and reward them for feedback and ideas-such as a truck driver's suggestion to add power mirrors that don't fog up to increase safety; a different fork-
lift configuration to ease unloading, or ways to conserve energy.
"All employees come equipped with a brain at no extra charge," Cory loves to quote, "so we solicit their ideas rather than just impose ours. There's an open flow of communication. We work to educate the entire staff on every angle of the business, so the execs and the truck drivers understand each other-same with yard guys and the administrative people, retail sales and janitor."
Poulin Lumber holds periodic company-wide meetings. monthly store-wide meetings, and weekly department meetings, all open-door and open-book.
It harks back to hiring. "We know that quality service depends on quality people," Cory begins, "so we put a big effort into constantly building a better team. We're very selective about whom we hire-not a mediocre person just to fill a slot-and we'll hire a good person even if there's no position open."
Training is a top priority, too: product knowledge, sure, but also safety, OSHA regs, and more, often through the Vermont Retail Lumber Association's courses. "It allows employees to further their knowledge and self respect," Cory knows. Poulin's management team benefits from the full picture, from courses in human resources, marketing and branding to conflict management, communication skills, and reading the balance sheet-knowledge which, as planned, trickles down to those they supervise.
In an economic climate where some owners are losing sleep over meeting payroll, or-horrors-finding it neces-
sary to furlough people, Poulin is hiring. In opening its third outlet-a sales office with a small showroom in Enosburg to reach an underserved region of Vermont (in addition to its Derby and Hardwick locations), the company hired two more outside salespeople, bringing the total to 13 on the road ("significantly more than is typical," Cory notes), plus a K&B designer, pegged to help builders with their projects, "to walk them through the options. They may be missing some fine points, some sales options," Cory explains the mutual win those extra items represent. To maintain loyalty and provide top-notch service, Poulin offers free estimates and free delivery.
The company also hosts occasional events to educate its contractors on everything from bank financing to new products. And it brings key custumers to the annual NRLA Expo in Boston, not only to boost product knowledge but pump up self-esteem. "It opens their eyes to [the scope ofl the actual industry," Cory finds.
Poulin's business is l0%o pro,3OVo retail, which Cory considers "a very good mix." And a conscious one. "We were all pro until five. six years ago. when we decided to redo the stores, with the help of Ace Hardware, to take advantage of homeowner traffic, too."
The new mix invigorated the retail sector, all right, but, surprise, "it helped our contractor business as well. They started coming in for little, dayto-day things like Christmas lights or a hose. And their wives would stop in for laundry detergent. It's now onestop shopping without being a superstore," Cory says.
Serving retail clients, he agrees, is
"another whole ball of wax. Sales are smaller, but they complement each other; there's maybe not much money in a paintbrush, but they see what's out there, and they'll come back for their deck."
Word of mouth draws people in, to be sure, but Poulin doesn't sit around and wait for jaws to wag. Proactively, he says, "we review every permit. And our trucks are always on the road. Thanks to good communications within the organization. if a janitor sees a foundation going in, he lets us know. fThis comes about because] everybody feels good about us as an organization."
It helps that Poulin treats its people as valuable performers and hands the grunt work off to a computer. Technology to the rescue! "Whatever doesn't make us money, get a machine to do it" is Cory's view. "We've converted our internal processes so they're electronic: ordering, projection of coming business, everything we do as a corporation, from windows to trusses. We now do digital take-offs, which are a whole lot quicker: 24 to 36 hours, no time delay. In the coming months, the whole retail store will be on automatic order."
Shuck the same old, same old is the message. Every item on the expense side of the ledger is carefully eyeballed, too. "We're working hard to reduce internal expenses, starting with focusing on fuel economy," Cory indi-
cates. "We're categorizing and stacking deliveries and tracking mileage. For better fuel efficiency, we're using smaller vehicles oftener instead of big trucks. We're making decisions, like Chevy vs. Ford, based on mileage and maintenance, and large vs. smaller motors to pull uphill. Also, we shut down our work stations every night. Every little bit helps," he knows. "Our goal is an alternative energy source. Maybe solar...."
That's one of Poulin's long-term objectives. Adding another location also is a possibility Cory mentions. But first things first, he insists: "We'll pursue the same ongoing goals: better terms and employee environment, better benefits." In other words, maintain that enviable position as "the employer of choice." Then the rest will follow.
And
On the job here since 1996, he's the fourth generation to run the family business, a rare species to encounter in this time of family fall-out. "I love the business; it's more of a 'real' industry, no bankers' formal wear, not fluff and mirrors. Great people. It feels good."
And-I wasn't going to tell you this earlier so you wouldn't eat your heart out-he's only 29 and already well ahead of the curve.
PRESIDENT/C.E.O. Corv Poulin reoresents the fourth generation of fahily leadership. -' F,--' iiII'OMEOWNERS looking to put lltheir houses uo for sale in the near future face a quindry: How much do they invest renovating their homes in a tough real estate environment?
As their material suppliers, lumber dealers should steer them to improve-
ments that increase not only the price they can get for the home compared to the investment, but also make the home more marketable in an increasingly crowded field.
Remind home sellers that, on average, exterior upgrades recoup a higher
percentage of costs. According to the 2007 Remodeling Cost vs. Value Report, the most profitable project on the national level was upscale fibercement siding replacement, recouping 88.17o ofcosts upon resale.
In fact, upscale fiber-cement siding replacement was the only one of 29 projects studied that returned more than 80Vo (82Vo of costs recouped) in the tightest market, the East North Central region of Illinois, Indiana, Michigan, Ohio and Wisconsin.
In the Pacific region, high-end siding replacements generated returns of well over 907o.
Yet nationally, even mid-range siding replacement returned an average of 83.2Vo of costs.
"The results underscore the importance of curb appeal in the buyer's eye," said Dick Gaylord, president of the National Association of Realtors.
Among other top projects, the cost vs. value report found that wood deck additions returned 857o, minor kitchen remodels returned 837o, and wood window replacements returned 8l7o of their costs. The least profitable projects were a back-up power generator, sunroom addition, and home office remodel.
Keith Brown Building Materials is closing its Tracy, Ca., yard Jan. 18 and shuttered its Madera. Ca.. location Dec.2I ...
Chino Hills Ace Hardware, Chino Hills, Ca., opened its 15,000-sq. ft. store Nov. 2 ...
Corbet's Ace Hardware, Larkspur, Ca., is planning to relocate after 54 years
Ace Hardware, Encinitas, Ca., held a grand opening Dec. 7 for the 6,400-sq. ft. store owned by Glen Maguire and Doug Billings, who also runs Billings Ace Hardware,Belrnont Shores, Ca.
F o xw orth - Galbraith Lumb e r, Payson, Az., was the site of a Dec. 6 injury accident when contractor Danny Heubel, 44, was pinned against his truck by a forklift he was using to load his vehicle
Habitat for Humanity has opened a ReStore used building rnaterials outlet in Carbondale, Co., and held a grand opening Dec. 13-15 for a new ReStore in South Salem, Or. ...
Home Depot opened new home centers Dec. 13 in N. Redmond, Or., and Nov. 29 in central Bakersfield. Ca.. as well as a newly relocated store Dec. 6 in Covina, Ca. ...
Home Depot was denied approval for a second store in Pleasanton, Ca.; applied to build a 100,000-sq. ft. store on 9.7 acres in Silverthorne, Co.; will open this spring in a 50-acre center in Carson City, Nv., and decided against building on an old Kmart site in Chula Vista, Ca.
Inwe's Cos. opened new stores Jan. 5 in Puente Hills and Rancho Cordova, Ca., and N. Las Vegas, Nv.; Dec. 22 inE. Spokane Valley
and Port Orchard, Wa. (Jim McLoughlin, store mgr.); Dec. 14 in Dublin, Ca.: Dec. 11 in Carefree, Az.; Dec. 9 in Vernal, [Jt., and Nov. 27 in Monroe, Wa.
Lowe's expects new store openings in lst quarter 2008 in S. San Francisco, Ca.; in 3rd quarter 2008 in Clinton, Ut., and Fort Collins, Co., and in lst quarter 2OO9 in Paso Robles, Ca. ...
Ferguson Enterprises will cut 1,300 jobs in the 2nd quarter to save $124 million; no new cuts are planned for sister company Sroclr Building Supply, which lost 5,000 jobs last year
M c Kinnon Lumber, Hollister, Ca., was named Retail Business of the Year by the San Benito County Chamber of Commerce
Builders FirstSource. Dallas. Tx., secured a new $350-million revolving credit facility
Wrouslrrns/tmurrcur:ns
Weyerhaeuser Co., Federal Way, Wa., broke ground on a new DC in Forks Township, N.J., soon after agreeing to sell its Boston Wood Products Distribution Center in Assonet, Ma., to Wood Structure s Inc., Biddeford, Me., and its hem-fir reloads in Reading and Pittsburgh, Pa., and Buffalo, N.Y., to Great Lakes Trading & Distribution...
Building Material Distributors Inc., Galt, Ca., has expanded its distribution of Simpson Strong-Tie products to Colorado, Wyoming, Eastern Washington, Northern Idaho, and Western Montana ...
Collins Cos.' Collins Pine FreeForm and Alpen fiberglass windows are among 2007's Top 10 Green Building Products, as selected by BuildingGreen from more than 200 new products sub-
mitted to the GreenSpec database during the past year
Jeld-Wen, Klamath Falls, Or., has become the sole supplier of fiberglass doors for East Coast distributor Brockway-Smith Co. ...
BuildDirect, Vancouver, B.C., this spring introduce Vanguard composite decking exclusively for distributors
U.S. Green Building Council, Washington, D.C., relaunched a more user-friendly website ...
Jackel Enterprises, Santa Cruz, Ca., was certified by Smartwood as a Forest Stewardship Councilapproved supplier of hardwoods and softwoods
Contact Industries, Portland, Or., has received Forest Stewardship Council chain-of-custody certification...
Timber Products. Or., earned Forest Council certification in Grants Pass, Or., Ms.
Springfield, Stewardship for its mills and Corinth,
CMI has made an equity investment in Chinese timber/doorskin manufacturer Fudun and entered into a joint venture partnership with Yawei and ThFu, makers of particleboard and door facings
CertainTeed, Valley Forge, Pa., created CertaPak shrink-wrap packaging to protect Restoration Millwork cellular PVC trimboards and corners, has met safety standards set by Architectural Testing Inc. for its Panorama composite railing system, and has expanded to 14 its line of low-slope roofing with CoolStar-coated surfaces
Do it Best Corp. ranked228 on the 2008 Information Week 500 list, for its use of leading-edge technology
Housing starts in November slipped 3.7Vo to a seasonally adjusted annual rate of 1.187 million ... single-family starts fell 5.4Vo to a l6-year low of 829,000 regionally, starts climbed 5.87o in the West permits declined l.5Vo to a 1.l52-million pace.
Listings are often submitted months in advance. Always verfu dates and locations with sponsor before making plans to attend.
North Cascade Hoo-Hoo Club - Jan. 15, crab feed, Viking Hall, Silvana, Wa.; (360) 391-1860.
Do It Best Corp. - Jan. 16-18, winter market, Shingle Creek Resort Golf Club, Orlando, Fl.; (260) 748-5300.
Western Building Material Association - Jan.16-17, sales seminars, Olympia, Wa.; Jan. 22-23, estimating seminar, Embassy Suites, Lynnwood, Wa.; Jan. 24, DOT compliance class, Olympia; (800) 956-7469.
Western Pallet Association - Jan. 19-22, annual meeting, Rancho Mirage, Ca.; (360) 335-0208.
Black Bart Hoo-Hoo Club - Jan. 23, industry night, Broiler Steak House, Redwood Valley, Ca.; (707) 462-3700.
Humboldt Hoo-Hoo Club - Jan. 24, crab feed, Elks Lodge, Eureka, Ca.; (707) 268-3082.
Guardian Building Products - Jan. 26-31, show, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (864) 297 -3498.
Window & Door Manufacturers Association - Jan. 27-30, annual meeting, Palm Beach Gardens, Fl.; (800) 223-2301.
Paint & Decorating Retailers Assn. - Jan.27-30, PACE 2008, L.A. Convention Center, Los Angeles, Ca.; (800) 737-OlO'1
National Association of Wholesalers-Distributors - Jan. 29-31, executive summit, Washington, D.C.; (202) 872-0885.
California Forestry Assn. - Jan. 30-Feb. 1, annual meeting, Hyatt Fishermen's Wharf, San Francisco, Ca.; (916) 444-6592.
Surfaces - Jan. 30-Feb. 1, Las Vegas, Nv.; (800) 536-6400.
Vancouver Hoo-Hoo Club - Jan. 31-Feb. 3, ski trip, Silver Star Mountain. Vernon. B.C.: (604) 430-3721.
Willamette Valley Hoo-Hoo Club - Feb. 1, crab feed & bingo night, Shadow Hills Country Club, Junction City, Or.; (541) 688-6675.
American Fence Association - Feb. 5-7, FenceTech & DeckTech, Mandalay Bay Convention Center, Las Vegas, Nv.; (800\ 822-4342.
Panel & Engineered Lumber International Conference & Expo - Feb. 7-9, Atlanta, Ga.; (334) 834-1170.
Western Building Material Association - Feb. 7-9, Young Westerners Conference, Red Lion at the Quay, Vancouver, Wa.r (800) 956-7469.
Los Angeles Hardwood Lumberman's Club - Feb. 8, pool toumament, Danny K's, Orange, Ca.: (626) 445-8556.
Remodeling & Decorating Show - Feb. 8-10, Orange County Fairgrounds, Costa Mesa, Ca.; (818) 557-2950.
Scottsdale Home & Garden Show - Feb. 8-10, Westworld of Scottsdale. Scottsdale. Az.: (87'7 ) 663-6 I 86.
Construction Safety Council - Feb. 12-14, annlual safety conference, Rosemont, Il.; (800) 552-7744.
International Builders Show - Feb. 13-16, Orange County Convention Center, Orlando, Fl.; (800) 368-5242.
Winema Hoo-Hoo Club - Feb. 16, Valentine's dinner, Reames County Golf & Country Club, Klamath Falls, Or.; (541) 8827559.
International Roofing Expo - Feb, 2l-23, Las Vegas Convention Center, Las Vegas, Nv.; (847) 299-9070.
Oregon Logging Conference - Feb. 2l-23, Lane County Fairgrounds and Eugene Hilton, Eugene, Or.; (541) 686-9191.
Orgill - Feb, 2l-23, spring market, Orlando, Fl. (901 ) 754-8850.
Remodeling & Decorating Show - Feb. 22-24, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950.
National Wooden Pallet & Container Association -Feb.23-26, leadership conference, St. Petersburgh, Fl.; (703) 527-'1677.
El Louise Waldron - Pat Hunter Waldron Forest Products 4227 Sunrise Blvd., Ste. 100 Fair Oaks, Ca.95628Attractive and extremely functional, Bookcase Door Systems offer a distinctive, space-saving opilon for closets, pantries, wall safes, wine storage, home offices or hidden rooms just past the threshold. Built with durable 3/4" ApplePly to support a load of 500 lbs., yet quiet and easy to open. Available in hardwood veneers (oak, cherry and maple) with environmentally safe clear and customized stain/paint finishes or unfinished. Woodfold Bookcase Doors ship fully assembled with heavy-duty roller system and multi-position steel upper wall guide.
For more information and a list of distributors in your area, contact
P.0. Box 346, Forest Grove, OR 97116
Phone (503) 357-7181 . Fax (503) 357-7185
www.woodfold.com
Your sourceJor custom-msile qccordion and roll-ttp doorc
Mountain States Lumber & Building Material Dealers Associ. ation welcomed Max Guetz. Sedalia. Co.. as its new president at its recent fall conference, succeeding Bill Miller, Alpine Lumber, Westminster, Co.
President-elect is Bryan Hutchison, Hutchison Lumber, Pine, Co.; secretary Dennis Gardner, Butterfield Lumber/ProBuild, Colorado Springs, Co.l national director Scott Yates, Denver Lumber, Denver, Co.; alternate national director Walter Foxworth, Foxworth-Galbraith Lumber, Dallas. Tx.. and associate directors Mike Kimrey, American Building Specialties, Denver, and Glenn Wurst, ilevel by Weyerhaeuser, Albuquerque, N.M.
State directors include Guetz, Gardner, Foxworth, Steve Ker, Max Ker & Son Lumber, Idaho Falls, Id.;
Paula Ervin, Randall Lumber & Hardware, Taos, N.M., and Scott Good, Greybull Building Center, Greybull, Wy.
MSLBMDA's 2008 Products Expo is set for March 6-7 at the Denver Merchandise Mart, Denver, Co.
Lumber Association of California & Nevada hosts a 2nd Growth meeting March 6 in Buena Park, Ca. March l1 is a joint legislative reception with the California Forestry Association, at the Sutter Club, Sacramento. Ca.
Western Building Material Association plans its 37th annual Young Westerners Conference for Feb. 7-9 at the Red Lion at the Quay, Vancouver, Wa.
Seminars include "Outlook Basic Training," "The OSHA Game Plan,"
Also slated are roundtable discussions, a tour of a treating facility, and product training workshops on hangers, windows, engineered wood, doors, composites, and housewrap.
Western Wood Preservers Institute recently held its annual meeting in Hawaii and elected new officers.
(See photos on p. 62).
The new president is Todd Brown, Bell Lumber & Pole, Grangeville, Id.; immediate past president Dave Perry, Exterior Wood, Washougal, Wa.; vice president Richard Keeley, J.H. Baxter, San Mateo, Ca.; secretary Jeff Parratt, Wheeler Lumber, Whitewood, S.D., and treasurer Bob Schmidt, Fontana Wood Preserving, Fontana, Ca.
WWPI also bid farewell to Dennis
Hayward, who is retiring as executive director, and welcomed Ted LaDoux as incoming executive director.
A winter work meeting is scheduled for Feb. I l-12 at the Jantzen Beach Red Lion Hotel, Portland, Or.
Western Wood Products Association will hold its annual meeting March 8-l l at the Doubletree Paradise Valley, Scottsdale, Az. (See p. 32 for more details.)
Los Angeles Hardwood Lumberman's Club has scheduled its annual pool tournament for Feb. 8 at Danny K's, Orange, Ca.
A golf tournament is being planned for March 13, but the location has not yet been set.
American Fence Association will host both Fencetech 2008 and Decktech 2008 from Feb. 5-7 at Mandalay Bay Convention Center, Las Vegas, Nv.
A golf tournament will be hosted by affiliate The California Fence Contractors Association.
Free education seminars will be offered by affiliates Vinyl Fence, Deck & Railing Manufacturers Association, and the Composite Fence & Deck Association.
Also on the agenda are product exhibits and demonstrations.
North American Deck & Railing Association will hold its annual Deck Expo March 5-6 at the Orange County Convention Center, Orlando, Fl.
APA-Engineered Wood Association has announced that James Enright, Standard Structures, who was elected vice chairman of the board of trustees during the association's annual meeting, has assumed the position
of chairman.
He replaces Rick Huff, who resigned as chairman after his departure from Tolko Industries. A new vipe-chair has not yet been elected.
Wood Moulding & Millwork Producers Association convenes its 45th winter business meeting March 12-15 at the Westin Mission Hills Resort & Spa, Rancho Mirage, Ca.
North American Building Material Distribution Association has launched an online career center for the distribution industry at careers.nbmda.org.
National Frame Building Association will hold its annual expo Feb. 20-22 at the Greater Columbus Convention Center, Columbus, Oh. Attendees can choose from semi-
nars on strategic business planning and new post-frame engineering and design.
International Wood Products Association will meet March 5-7 at Royal Pacific Resort, Orlando, Fl., for its 52nd annual convention.
National Association of Home Builders has scheduled the annual International Builders Show Feb. 13l6 at Orange County Convention Center, Orlando, Fl.
Daily featured speakers include architect William McDonough, who will discuss "The Promise of Cradle to Cradle Design;" Mark Jarvis, chief marketing officer for Dell, who will present "Eye on the Prize: Customers as Advocates," and marketing guru Ken Schmidt, who will discuss the importance of branding.
ProBuild Holdings, Denver, Co., has purchased the assets of New Mexico's largest pro dealer, six-unit Lumber Inc., Albuquerque, N.M.
Founded in 1972 by the Wickens and Chiado families, Lumber Inc. now operates four locations in the greater
Albuquerque market, one in Santa Fe, and one in Las Cruces, distributing lumber, floor and roof trusses, wall panels, and millwork.
Jim Cavanaugh, president of ProBuild's south region, said, "This acquisition allows ProBuild to expand our presence in New Mexico in all
areas of our business, including building materials, component manufacturing, and millwork assembly. We are particularly pleased to have the vast majority of the Lumber, Inc. management team on board to provide the leadership to continue growth in this key strategic market."
Pope & Talbot, Portland, Or., cancelled the planned auction of its lumber business because no one has countered International Forest Products' $69 million offer.
P&T hoped to have the sale to Interfor approved during a January 7 appearance at the U.S. Bankruptcy Court in Wilmington, De. "Time is of the essence with respect to the approval of the sale," according to court papers filed by P&T attorneys.
If approved, the sale could be completed by the end of this month. Not included in the sale are cash, accounts receivable, and some inventory.
An employee of Truitt & White, Berkeley, Ca., was hit and killed by a train while taking a shortcut to work.
Scott Slaughter, 31, a back-stock coordinator who had worked at Truitt for 3-l12 years, was fatally struck at 8:15 a.m. on November 15. He had just gotten off a bus and was talking on his cellphone as he waited to cross two tracks to get to a shortcut on the other side.
"There is a hole in the fence and he was heading to that shortcut," said deputy sheriff Rene Gonzalez. A coworker said that the large gap in the fence is the easiest way to get to work, but safer options-including a pedestrian crossing-are only about 50 feet away. Although Slaughter waited to let a commuter train pass on the first track, he was hit on the second track by a passenger train from the opposite direction that was traveling 75 miles per hour.
According to city officials, Slaughter was trespassing on the tracks and workers should not be using the gap in the fence. "We are not sure who owns the fence. but once we figure this out, the responsible party will act quickly after that," said Mary Kay Clunies-Ross, spokesperson for the city attorney's office.
Federal Railroad Administration reports that 91 pedestrians were killed by trains in California last year-more than in any other state.
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.nHE difficult lumber markets that |- have vexed western lumber mills. wholesalers and retailers in 2007 aren't expected to improve much in 2008, according to Western Wood Products Association's recent lumber market forecast.
After U.S. lumber demand reached an all-time high of 64.3 billion bd. ft. in 2005, lumber use in the country has declined by more than l0 billion bd. ft.-the steepest two-year drop in the history of the lumber industry.
The faltering housing market has been the chief cause of lumber demand declines. Housing starts through the first three quarters of 2OO1 were on pace to finish below 1.4 million units. That would equate to 600,000 fewer homes built compared to 2005.
WWPA economist Kevin Binam said the credit crunch caused by subprime mortgages has had a significant impact on new home construction. He noted it will take time for markets to work through the financial crisis.
"The collateral damage on the economy from subprime mortgages may be far worse than we know, but the effect it is having on housing is pretty clear, and it's going to last longer than we previously expected," said Binam.
With the supply of vacant new and existing homes rising sharply, the forecast for new housing starts in 2008 is flat at 1.41 million starts. Markets that experienced accelerated
home price increases earlier this decade, such as California, Arizona and Florida, will be slower to recover.
Flat housing markets will mean more weakness in lumber demand. U.S. lumber consumption is forecast to shrink further in 2008 to 52.6 billion bd. ft.. the lowest annual volume since 1998.
The housing problems are having a significant impact on western lumber production volumes. Nearly 90Vo of the region's lumber output is structural lumber-products such as dimension lumber, studs and timbers-used to build houses and other buildings.
Western mills shouldered much of the downturn in supply in 2006, reducing production by 7Vo to 17.9 billion bd. ft. Another 1Vo decline is expected in 2001 , followed by a more modest 27a decrease in 2008.
Southern production, which in 2006 surpassed western output for the first time ever, is forecast to decline 1Vo to 17.4 billion bd. ft. in 2001 and slide to 17.1 billion bd. ft. in 2008.
Evcn with thc rcductions in production, weak markets have pushed lumber prices to historic lows. Average prices for Douglas fir lumber-the highest volume species produced in the West-are 3l7o lower compared to peak prices in 2006. Hem-fir lumber prices are off onethird from 2006 highs.
Lumber imports went into freefall in 2007, as weak markets and low prices were compounded by unfavor-
able currency exchange rates. By fall, the U.S. dollar reached new lows compared to the euro. The value of the Canadian dollar strengthened to more than par with the U.S. dollar, essentially reducing lumber sales returns by some 307o compared to two years ago.
After totaling nearly 25 billion bd. ft. in 2005, lumber imports to the U.S. declined 8Vo in 2006. The decreases accelerated in 2007. and lumber import volumes are expected to finish down 177o, to below l9 billion bd. ft.
Shipments from Canadian mills are forecast to shp 147o to 17.4 billion bd. ft.. the lowest annual volume to the U.S. in l2 years. Canadian shipments should fall below 17 billion bd. ft. in 2008.
Non-Canadian lumber shipments to the U.S. are forecast to decline 4l,Vo. European lumber imports, which grew to more than 2 billion bd. ft. in 2005, will reach only 701 million bd. ft. in 2007 and decline even more in 2008.
WWPA president Michael O'Halloran said weak markets and poor prices have taken their toll on western mills. But, he added, the low activity of previous two years will set the stage for a strong recovery starting in 2009.
"There is a light at the end of this tunnel. By the end of next year, that light will be brighter and western mills should see improved markets," he said.
of one of the most infl uentiol gotherings of the Western lumber industry. Mork your colendors for Morch B-l I in Scottsdole to join the top executives, soles professionols ond production monogers from the leoding lumber producers in the West.
This three-doy event feotures goll o lumber forecost, networking opportunities ond the Exchonge Show, where you con promoTe your compony ond services to the industry,
Register for the Annuol Meeting ond moke room reservotions of the DoubleTree Porodise Volley Resort online ot www.wwpo.org,
For o registrotion pocket or Exchonge Show informotion, coll Diono Sprogue ot 503-306-349.l or send on e-moilto info@wwpo.org.
THE warm Arizona sun will offer a |- welcome respite from the chilly sales markets for western lumber professionals as they head to Scottsdale, Az., in March for the 2008 Western Wood Products Association annual meeting
The March 8-11 event is the largest annual gathering of sawmill professionals in the region, bringing together western lumber c.e.o.s, senior executives, sales and marketing professionals, and quality control managers, as well as wholesalers, retailers, transportation representatives, and others doing business with sawmills. Scottsdale's DoubleTree Paradise Valley Resort will be the headquarters for the meeting.
One of the most anticipated events at the meeting is the association's
updated forecast on lumber supply and demand. The forecast session, scheduled for Tuesday morning. March I l, will focus on the housing market. Lee McPheters, senior associate dean of Arizona State University's W. P. Carey School of Business, will headline the session by reviewing the outlook for housing and construction, particularly in the Southwest.
WWPA economist Kevin Binam will update the WWPA forecast for lumber markets into 2009 and highlight the major sources of demand for western lumber.
Other events at the three-day meeting include business meetings, a golf tournament, many networking opportunities, and a spring training baseball game.
For suppliers and others doing
business with western lumber mills, the WWPA Exchange Show offers a unique opportunity for companies to connect with mills. The Exchange Show will be held Monday evening, March 10, and features table-top displays for participating companies. A table top can be reserved for just $150, or $75 for WWPA Distributor and Service Associates.
Sponsorship opportunities are also available to promote products and services to westem lumber mills. A number of the meeting events on the schedule are available for sponsorship, with fees ranging from $1,500 to $3,000.
For further information on the WWPA Exchange Show and sponsorships, send an email request to info@wwpa.org.
Attendees can register online for the WWPA annual meeting and make reservations at the DoubleTree Paradise Valley Resort. For links to the registration pages, go to WWPA's website, www.wwpa.org.
Since spring is a busy time in the Phoenix/Scottsdale area, making hotel reservations early is recommended. In addition to reserving a room via the web, you can call the DoubleTree Paradise Valley Resort directly at (48O\ 947-5400 to make reservations by phone. Make sure to tell the reservation operator you are attending the Western Wood Products Association annual meeting to secure special rates. Registration materials will be mailed in early January. A preliminary schedule is available on the WWPA website. To receive a meeting packet by mail, contact WWPA's Diana Sprague by phone, (503) 306349 I, or email, info@ wwpa.org.
Sfimson fingerjointed StimProtu studs provide top performance and have an excellenf reputation with co,ntractors, remodeters and do-ityourselfers.
Sti mProTM fi nge{oi nted fram i ng lumber and studs meet or exceed industry specifications. Downfall is also minimized with Stimson finge$oint products. Fingefi ointed dimension lumber and studs carry the same design values as their solid lumber counterparts, maki ng them 1 007o interchangeable.
o StimProTM finge{oints run across the face of the stud, better aligning the edges and minimizing offset.
o Fingefloint adhesive is 1007o exterior glue.
o Precision end triming is available up to 14 ft.
o Double end trimming is available up to 40 ft,
r All edges are 1/4-inch eased.
o Stimson fingefloint lumber has certfied exteriorjoints, stamped "CERT EXT JNTS".
Species
All kiln dried 19% or less.
o Fir Larch
r Spruce, Pine, Fir (SPF-s)
r Whitewood
Sizes
oZx4
c 2x6
o Lengths up to 40 ft
Crades
o Stud
o No. 2 and Better
r lndustrial Grades
Finge$ointed studs are accepted by the International Building Code as well as the Model Building Codes (UBC, BOCA, Southern Standard) which are in effect in somejurisdictions.
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Stimson finge$oints are continually tested to insure the bond is sound and meet exterior standards. Individual pieces are then systematically selected for load testing to assure bending and tension forces meet or exceed those for the same grade in conventional framing. Each piece is WWPA grade marked as "Certified Exterior Joints" for both vertical and horizontal applications, while improving srability.
IIOLLOwING uP on its successful I-' efforts to begin recording the history of the Western lumber industry, the Lumber Pioneers is looking toward the future in developing the next generation for the industry.
The Lumber Pioneers was formed tn 2004 to maintain the many relationships among individuals who have
worked in the western lumber industry, document the history of companies and individuals who have shaped the industry, and provide support for those seeking a career in the industry. Membership in the organization now tops 130, and any individual with at least 20 years experience in the industry can join for $20 in annual dues.
THE mythical Paul Bunyan is I linked to reallife history in the newest monograph published by the Lumber Pioneers, with assistance from Milton Schultz, the last Paul Bunyan manager.
The monograph covers the Paul Bunyan Lumber Co,, which operated in northern Califomia from 1945 to 1986. Tracing the company's roots back to the Red River Lumber Co. in the 1860s, the publication details how the T.B. Walker family, including grandson Paul Walker, helped transform the industry with new logging techniques, transportation partnerships, and innovative
marketing.
Walker's companies took the regional tale of Paul Bunyan and made the fabled lumberman-along with his blue ox Babe-a household name throughout the country, while at the same time promoting the mill's products. Other characters that were part of the promotions included Johnny Inkslinger, Paul's headquarters clerk; Big Ole, the blacksmith, and Sport, the reversible dog.
The gigantic logger Paul Bunyan continues to live today within the Turtle Bay Exploration Park in Redding, Ca. The Paul Bunyan Forest Camp includes play equipment and exhibits to teach children about California's forests and timber industry.
The Paul Bunyan Lumber Co. monograph is the third historical publication commissioned by the Lumber Pioneers. The first monograph was on Pope & Talbot's Port Gamble, Wa., mill, the longest continually operated sawmill in North America before it closed. Last year, the Lumber Pioneers released a monograph about Gilchrist Timber Co. in central Oregon.
Copies of the monographs are $5 each. For ordering informatlon, pioneers@wwpa.org.
At the organization's third annual meeting, held Sept. 28 in Clackamas, Or., Lumber Pioneer members confirmed its standing as an Oregon nonprofit corporation and voted to proceed with applying to the Internal Revenue Service to become a taxexempt organization.
Robert Courtney, Lumber Pioneers chairman, said the Iegal work is essential for establishing a charitable fund for scholarship or other philanthropic programs.
"It's important to set this up properly and create a solid base for any charitable activities the members want to pursue," he said. "We want to provide the full tax benefits to donors, which will encourage contributions to this worthwhile effort. "
Courtney said the Lumber Pioneers will likely establish a scholarship program once its IRS status is finalized. He said many members are eager to help those seeking a career in the wood products industry.
"There are some great opportunities ahead for young people who want to be a part of our industry. As we look at the challenges facing companies who make and sell wood products, our industry will need the fresh talents and energy of today's youth," Courtney said.
"The best legacy we can leave as wood products veterans is a new generation ready to lead our industry in this century," he added. "We believe a scholarship program can help create those new leaders."
Courtney said membership recruitment also is a top priority for the Lumber Pioneers this year. He said there will be a renewed effort to recruit long-time professionals who are still working in the industry.
For more information about the Lumber Pioneers or for membership registration forms, visit the Lumber Pioneers section on WWPA's website, www.wwpa.org, under the About WWPA link. Or email the Lumber Pioneers at pioneers@wwpa.org.
/1 REEN is the color of the future \fin the construction and building materials industries. The release of new national green building standards and expanding requests from the marketplace are creating new demands for information about the environmental qualities of building products and construction practices in residential building.
In recent years, the green building trend has been seen mostlv in com-
mercial construction, influenced by growth in the use of the U.S. Green Building Council's LEED, or Leadership in Energy and Environmental Design rating system. The number of commercial projects that are LEED certified has increased by more than TOVa a year, according to Jerry Yudelson. author of The Green Building Revolution. Yudelson said the federal government, 20 states, and more than 60 cities require public
buildings to meet green standards. For residential construction. the green building trend has moved slower but may begin to accelerate as two national green building standards hit the market and will soon vie for the attention of both home builders and home buyers.
A LEED for Homes ratings system rvas released in November, following
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IX/ITH housing in a slump and the Y V forest products industry facing a severe economic downturn, wood associations across North America have initiated a major program to grow wood's share of the commercial building market in the United States: WoodWorks for Non-residential Construction.
An initiative of the Wood Products Council (WPC), the program involves supporting engineers, architects, general contractors. and others considering the use of wood in commercial buildings, and maintaining that sup-
port from conception through completion of their projects. This includes (among other things) education and training with regard to code issues, and technical support to address issues such as fire, safety, durability and cost.
"Most people don't realize that, before the second World War, wood had the majority share of the non-residential market." said Dennis Hardman, current president of the WPC and president of APA-The Engineered Wood Association. "After the war. most of the available timber
went to meet the rising demand for housing and, coupled with the trend toward taller structures, wood lost its place as the dominant material in commercial buildings. We've established WoodWorks to let the design and building community know that wood is the same excellent choice it always was for non-residential structures - if not better, given today's modern wood products and awareness of wood as a green building material."
WoodWorks is being launched in three initial markets - California. the
(Continued on page 40)
Rosboro BigBeomo
This hich strength 3(XX)F. l.lE bearr is manulirctLrred to nratch startdard I .joist depths and lvall franring riiclths. This shoLrld be vour first choice fill cn-ginccrccl tloof svstcms.
Rosboro Stock Glulom
Likc all 01'our clulanr proclucts. stock slulam is nranufacturcd lionr kiln ch'iccl. mechanically stress ratcd lumbcr. This 2lF beanr is availuble in Architecturll and Franrins illlrclrancc.
Rosboro Treoled Glulom
OLrr Trcatcci Glulam is l l-lF. I .llI glulanr beam niade fl'onr SoLrthcrn Pinc urtd treatcd tith a saf'e l'n'ood preservative ancl $ lrtcr -r't'|cl ]cnt tfcttnlcnl.
Rosborol.SE IJC
N{anLrfirctured flat. with zcro canrbcr'. l.8E IJtl rntrtchcs stanclalcl 2x-l framing r.r'iclths ancl is ar aillble in dcpths that nratch I-.joists.
h Produd lechnkol Supporf
Oulliee Rosboro KcyBcarn" softwarc takes all of the guessr"'ork out o1' specilying and sclccting slulam. lt allou s users to easill cnter thc span and loacl conditions and autonraticnlit iletelnrinc the bcst product lil'an lpplicatiun.
Our tcchnical suppolt teanr is also hcrt to help lrchitects. distributors and builclcrs. \\'e u ill quickly and accurately iinswcr questions ot'trr)ublcshoot problems liom thejobsite. Call oLrr Technical Support Hotlinc: I lJ77-,157-+ 139.
For Glufanr Sales: 1)alrr1 Srrrllli 1-5-l| 136-21 58. Cirrrli Hattgstlcr I -.541 -7i6-11 l-1. lbll-Free: I -888-39-l-230,+
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Southeast (Georgia and the Carolinas), and the NorthCentral U.S. (Wisconsin, Minnesota, Illinois) - which were chosen based on criteria such as level of construction activity, potential for local support, and volume growth opportunity. Each market either has or will soon have its own contracted field team, which will follow the same program framework. A national team provides strategy and oversight, manages elements of the program that are common to all regions (such as the website), and implements activities that are national in scope.
"Given the housing situation, it makes strategic sense to enhance other markets that are likely to consume and source additional North American wood products," said Hardman. "Because of its size, proximity and familiarity with wood, non-residential is an obvious choice."
Experience also shows that, where similar programs have been in place for long periods of time, the results have been definitively positive. In Canada, for example, a program led by the Canadian Wood Council has significantly increased the number of commercial buildings using wood while, in the U.S., the industry has achieved good results with a program to encourage architects to frame elementary schools in wood as opposed to the usual steel and
MARKETING programs are helping to drive increased use of wood comoonents in commercial construction. tS.Jones TIMBER i-lernlock,concrete. Initiatives in Finland (and elsewhere) have reported equally positive outcomes.
Success of the WoodWorks program will be measured both directly by project and against volume and opinion benchmarks. The anticipated increase in total consumption is at least 20Vo for lumber and l}Vo for panel products within five years and 7O7o and 257o (respectively) within nine years. According to research done by the U.S. Forest Products Lab, FP Innovations-Forintek Division. and others, these increases represent less than 15Vo of the total incremental gains possible, which indicates that the opportunity to continue to gain share for decades is substantial.
"Achieving significant growth is absolutely possible," said Hardman. "But the effort has to be substantive and sustained over many years, and it has to leverage the industry assets already in place within the various associations and R&D organizations. We're at the stage now where we've created a program that utilizes each of our strengths and takes advantage of our offerings. WoodWorks is a definite step toward better times ahead."
For more information on the WoodWorks program, email info@woodworks.ors or visit www.woodworks.org.
- The WPC is an established, nonstaffed organization through which North American wood associations coooerate on marketing ventures of common' interest. All associations are invited to participate, with the most active beinp the American Fo rest and Pape r Association/Ame rican Wood Council, APA-The Engineered Wood Association, Southern Forest P roducts Association/Southern Pine Council, Western Wood Products Association, and Canadian Wood Council.
Wood Solutions Fairs, which feature wood-related exhibits as well as a day-long program of concurrent seminars, are an important part of the educational program. WoodWorks is currently seeking exhibitors for the following fairs:
Jan. 31 - Long Beach, Ca.
March 27 - Charlotte, N.C.
Sept. 30 - San Francisco, Ca.
Oct. 16 - Atlanta, Ga.
Nov.5 - Minneapolis, Mn.
For information, please email Ioana Lazea at ilazea@ cw c. c a.
Columbia Vista specializes in kiln-dried Douglas fir 4 x 4s... high qualiry yet affordable alternatives to pine and cedar posrs. Available in 8-, 10- and l2-foot lengths, our 4 x 4s are produced by skilled, dedicated people during a single shift for maximum consistency.
Our commitment to the finest extends beyond the mill. Mills m consistently upgnded with state-of-the-art Wete proud to be certified to ISO 14001 standuds and by the EPA for environment-friendiy practices, 3-D scanning systems, mechmiad lumbcr-handling ststcms. md more. Posts
including the usc ofnon-polluting sourccs ofclcctricity. Employcc-friendly workplace mcans our pcoplc takc Columbia Vista ensures quality in many my$.. pride in their work and producs.
COMMERCIAL markets are activity plummet. being targeted by alumber industry that has watched residentialfT'S lr.'.';1 :ltitl lltrtl rttlrkittl lttttlhct' lis tu,rte ()l rul uft thlttt lt st'ir'ttr'c. Hon cvcr. thc cornpctitive rratirrc o1' lumbcl nrarkcts hcre in thc 2lst Centull'. as * e ll as the atlvuttccs in nriillillilL turins tr'r'ltttolorr. i\ rll(r\ illt tlrr' lrrnrhcr' nrililillil( tuIin! 1rl'()!c\\ closcr to scienec.
Onc of tl.rc rrcrrr'st initirrtircs in thc wcstcrn lurrbcr industr'1 is ultplr irtg nroclcrn quality control llllnl-genteltt
tcchnicprcs to rlanufac1r.rling. Wcstcln Woocl Pnrrlrrcts Associltion has bcctt lclrcling thc inclustrr's cllot'ts in this arcil \\,ith its pionccling Quulitr Managcrncttt Systcrn. or QN'lS ltrog fllll-1.
Trarlitionullr in a sun ntill. cnrploy ccs in e uch area ol plocluctiort lirctts specificalli,, on thcir u olk centcr rr ith little conncctiorr to thc other' parts of the nranr.rf actllrins l)r()ccss.
roluntlrr QMS
proq.tiUD. evcfY lcvcl ol thc pro
rlrrction proccss is tlocutucutccl llorrr thc log clcck 1o the shipPing clock. Ob.jcctir es arc clctelntincrl bltsccl ott hou' thc f'unct ions of clrch sPcc il'i.' u olk center al'l'ccts tlic l'inll rlLralit) ol tlrr' lLrrtthel Ir'rrtlttel. Tltett rt tttottttot' irrg ancl auclitin!'prosrlnr is inrplc
mented to identify any adjustments that need to be made and ensure the stated objectives are being met.
"The QMS concept can be described as 'Say what you do and do what you say.' That sounds simple, but if a mill can do this in a systematic way, it can allow them to make their operations more efficient and give employees a better understanding of the entire process and the importance of their specific job in the final quality of the lumber they are making," noted Dr. Kevin Cheung, the WWPA technical director who helped establish the QMS program.
"Once in place, a QMS program can enhance the control mill managers have over the entire production process. while at the same time promoting continuous improvement throughout the plan," he added.
Dr. Cheung said the QMS program for lumber follows the same principles and concepts as ISO 9000 and similar programs, which are often touted in other manufacturing industries. He said the WWPA program was specifically designed for lumber manufacturing. with association member company quality control experts working for more than a year to establish a framework for the program.
Both Dr. Cheung and Chris Coleman, association wood technologist, have completed training as Certified Quality Auditors from the American Society for Quality, the world's leading authority on quality. Association lumber insoectors. who
will help conduct the periodic audits at QMS mills, will be receiving ASQ training as well in the future.
To date, 13 mills have been certified by WWPA as QMS operations. The process for certification, which includes completing all the documentation, objectives and monitoring, can take as long as a year. WWPA provides all the basic materials needed, including sample manual. Association staff also conducts regular audits to
provide independent verification of mill practices and suggest improvements in mill programs.
Jeff Webber, vice president of operations for Stimson Lumber Co., Portland, Or., said the pace of lumber manufacturing today creates significant challenges in managing operations. He said QMS has provided much more control for mill managers.
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( Continued from page 36)
two years as a pilot program. Like the system for commercial buildings, housing can earn designation as a LEED
Douglas Fir
Hem-Fir . White Fir
Ponderosa Pine
Dimension Lumber, to 2O' Shop & Moulding Grade
Iaminate Grade Stock
Vertical Grain Fir
Select Structural FOHC Timbers
Forest Products Industries
P.O. Box 810, Warm Springs, Or. 9776I . Fax 541.553.1063
Phone 54f.553.1148
Janet Corbett. Lori Courtney
Certified, Silver, Gold or Platinum home, based on criteria defined by the USGBC.
The National Association of Home Builders announced it will launch its National Green Building Program during the 2008 International Builders Show next month in Orlando. The program was created in cooperation with the International Code Council.
According to NAHB, the national initiative will link dozens of successful state and local green building programs with a universal online certification tool, national registry of green homes and green builders, and a wealth of educational tools and resources for home builders and home buyers.
Builders will also be able to earn Certified Green Professional designation through continuing education.
Western lumber producers have watched this developing green trend and are beginning to respond. Western Wood Products Association is creating new materials under the theme "Western Lumber-The Original Green Building Product" to help explain the many green benefits found in lumber.
WWPA's website features a section entitled "Choices," which details how western lumber is the most environmentally responsible choice in building materials. Topics addressed in the section include why wood is the best choice, forest harvesting, renewability, sustainability, certification and life cycle science.
Additional white papers will be
prepared by WWPA in the coming months, covering lumber certification programs, life cycle science and lumber, and green building standards. The papers will be designed to assist WWPA mills and distributors in answering many of the common questions on green building raised by customers.
Lumber certification has been the most visible response to the green building trend. A majority of the lumber produced by WWPA mills is certified under either the Sustainable Forestry Initiative (SFI) or the Forest Stewardship Council (FSC).
While the two certification programs have been judged as very similar, there are differences in which certifications are accepted. For example, the LEED system awards points only for use of FSC-certified products and does not recognize SFl-certified lumber. The lumber industry has urged the USGBC to recognize other lumber certification systems besides FSC, but those efforts have been unsuccessful.
The New NAHB National Green Building Program is expected to recognize both certifications, as well as other systems such as the Pan European Forestry Certification.
Distributors seeking certified lumber can go to the WWPA website and use the interactive buyers guide. The guide allows visitors to select either environmental certified, FSC certified, or SFI certified from the Product Type prompt and generate a list of mills that can supply the products.
( Continued from page 43 )
"Many mills today operate around the clock. By having clearly defined procedures and standards for each job, including what to do when things go awry, we can be sure we're meeting our quality objectives regardless of who's operating the machine or supervising the crew," Webber said.
Webber added that the QMS program is particularly useful for companies with multiple operations. Nine of Stimson's mills in Oregon, Idaho and Montana have earned QMS certification.
"Being a multi-mill company, we didn't have to completely re-write the book for each plant. We've been successful at taking best practices from all our mills and incorporating them into customized standards for each operation," he explained.
Mills who have qualified can place the wwPA QMS Certified Mill logo on their paperwrap. shipping invoices. and other sales materials. The mark is intended to inform customers of the mill's commitment to produce quality lumber products.
Webber said the QMS program will be an important asset to help
assure lumber buyers of the mill's commitment to make quality lumber products.
"We want to do more than talk about the quality of our lumber manufacturing," he said. "With QMS, we can show our customers that we mean what we say."
Manufacturers of 20 million bd. ft. monthly of 2x4 thru 2xl2 in lengths 6' thru 20' in White Fir . Douglas Fir . SPF-S PP
Producing 2,000,000 bd. ft. monthly of 5/4 & 6/4 Ponderosa Pine Shoo
4/4 Pine Board Programs and 5/4 Radius Edge Decking Programs
State-of-the-Art Hewmill & Headrio Mill
Contact Sheldon Howell
Yakama Forest Products
3191 Wesley Rd., White Swan, WA 98S52 rel. t5091 874-1163
Fax 509-874-1 162 . wwut.Uakama-forest.com
the past,
NEW HRA mark now appears on most F/J lumber produced in the West, indicating it has been joined with heat-resistant adhesive.
are seeing new marks on the gradestamps added this past summer to products joined with approved heat-
resistant adhesives.
Most of the fingerjointed lumber produced in the West carries the new HRA mark, indicating the lumber has been joined with heat-resistant adhesive. The HRA designation is incorporated with the other information on the gradestamp.
HRA-marked fingerjointed lumber can be used in assemblies that must have a fire rating under U.S. building codes. Typically, one-hour fire rating is required for multistory/multifamily structures between living units. Detached single-family homes under cunent building codes do not require one-hour rated assemblies.
This spring, the American Lumber
Standard Committee established a new policy for HRA fingerjointed lumber and adopted procedures to qualify adhesives as heat resistant. Adhesive makers have conducted fire tests and submitted results for qualification.
So far, eight adhesives have been approved as heat resistant. Western Wood Products Association, which provides grading services for more fingerjointed lumber than any western agency, evaluated and earned ALS approval for seven of the eight adhesives.
Lumber joined with adhesives that have not been approved as heat resistant can be marked as Non-HRA. Presently, fingerjointed lumber with no HRA mark will be considered the same as Non-HRA market lumber and should not be used in fire-rated assemblies.
WWPA has prepared a Fast Facts sheet on HRA fingerjointed lumber, which includes facsimiles of the new gradestamps, background on the testing for heat-resistant adhesives, and approved uses for such lumber.
Fast Facts can be downloaded from www.wwpa.org.
Eall Billy Sunn (509) 422-7033 or Terry Johnson (509) 422-7023 Fax 509-422-7034
PhibroWood,LLC, Ridgefield Park, N.J., has developed reportedly the first micronized copper azole wood preservative, Sustain 20T.
Micronizing the copper in solid particles produces a less corrosive chemical, as proven by micronized ACQ products introduced by PhibroWood last year and by Osmose in late 2006. PhibroWood has even higher hopes for SustainT, because of its low retention levels (0.07 pcf for aboveground use and 0.16 pcf for ground contact use) and more economical concentrated form.
The new preservative has been ICC reviewed. PhibroWood is producing SustainT at its plant in Sumter, S.C., which will continue producing PhibroWood-CQ micronized ACQ along with its facility in Joliet, Il.
Early this year, PhibroWood expects to begin offering Sustain 20CQ, a micronized copper carboquat system for wood treaters looking to employ copper quarternary systems and micronized copper in a shared cylinder.
(Continued from page 17)
hard to get at the moment, but lots of built-in decay resistance and a proven track record. What about "other?" Well, from China there's Paulownia and C. lanceolata. The latter is the one that has been attacked lately for being "not really cedar or fir." That's true, but on the other hand, the Confucian temples I saw in China were built 900 years ago with the stuff. My decay-resistance meter doesn't go that high. I'll have to call Spinal Tap and see if they have a meter that goes up "to eleven."
Paulownia is a stable board with some decay resistance, though it's very soft. C. lanceolata is difficult to get in a clear, but the knots have not caused a problem in our experience.
I could go on about substrates for days, but let's move on to coating systems. The typical coating system for most of the last 20 years has been oil-based primer. The market has taught us in the last couple of years, with the help of PVC, that people are willing to pay more for a better value. The answer has been to use a primer and topcoat or, at least, more than one coat to create a smoother, more opaque finish that lasts longer in the field. Some coating systems are even boasting zero emissions, a dramatic advancement for the industry. Latex coatings applied directly over raw substrate tend to swell the grain. Oil coatings allow the grain to remain flat. Some oil coatings are capable of wood fiber encapsulation resulting in better water repellency.
Getting the coating right for exterior trim takes some research. For example, with the success of Gesso for interior applications, some manufacturers have tried to duplicate the coating for exterior. One product from China has a very smooth finish, but when I placed it outside it cracked within two days. Look carefully at how these products are tested. The wrong exterior coating is a big potential liability.
For sourcing, we've seen quite a shift in the last ten years from domestic to Europe to South America and New Zealand to more recently, China. This has been driven as much by manufacturing investment as it has by currency exchange rates. China has the lowest labor cost, but keep an eye on Russia. They still have the most trees by far, at almost 5OVo of the standing timber in the world.
One unique spruce trimboard we saw from Germany had
to switch manufacturing to the Baltic states about five years ago as the dollar decreased in value. Now, we see a huge increase in exports to Europe and a dramatic decrease in imported spruce and pine. South America looked like a great altemative, but some price pressure might loom as the dollar falls against the peso and the real. China sourcing will likely be the next wave for new trim board species. Wages in China are rising rapidly as its economy grows and the country learns there's a cost to getting it right. Ordering wood from China has a big impact on turns as the wood stays on the water for several weeks.
This might seem more like an introduction to wood trim boards than a big help in making your selection easier. Sometimes knowing the breadth of the problem helps to break it down. Plus, you can always call me. I'm usually just sitting around watching paint dry.
- Dennis Connelly is co-creator of Ze-VO Technology, c.o.o. of PrimeTECH, and a member of the Forest Products Lab Joint Coatings Forest Products Committee. He can be reached at dconnelly @ zev ote chnolo gy. c om.
Ray MacDonald has been promoted to general mgr. of Anfinson Lumber Sales, Chino, Ca.
Joseph Lawrence, president, Dixieline Lumber, National City, Ca., has been promoted to president of ProBuild's west region, based in Olympia, Wa. He succeeds M. David Dittmer, who is leaving the company to pursue other interests.
Ron Holen is the new general mgr. at Yakama Forest Products, White Swan, Wa.
Garrett Gill has been promoted to president and general mgr. of Chase Lumber, Aurora, Co.
Joe Cory and Stephen Walsh, exSunset Forest Products, are now with Progressive Services Corp., Lake Oswego, Or.
Jim Mackall has been promoted to director of sales for the building product division of Building Material Distributors. Galt. Ca.
Richard Mills was promoted to branch mgr. of Taiga Building Products. Rocklin. Ca. Pat Zan is now responsible for California operations, including overseeing all new product lines and the DC in Sanger, Ca. Troy Felder was promoted to engineered wood products mgr. for Northern California.
Bob Von Bargen, ex-Olympic Wholesale, has launched South Sound Invest, Shelton, Wa., specializing in shakes, shingles and other cedar items.
Michael Ghiotto was promoted to the sales team of Woodfold Mfg. Inc., Forest Grove, Ca.
Kim Garrigan is new to Capital Lumber, Stockton, Ca., providing product and sales support.
Dan Mak, ex-APA-The Engineered Wood Association. is now an analyst at The Beck Group, Portland, Or.
Sean Park is store mgr. of the new Lowe's Home Improvement Center in S. Meridian, Id. James Davis is mgr. of the new Lowe's in San Bernardino, Ca., with Jimmy Chavez as sales mgr.
Joe Garcia has transferred from Home Depot, Chino, Ca., to manage its S. Chino location.
Daniel Fulton has been named president of Weyerhaeuser Co., Federal Way, Wa., succeeding Stephen Rogel, who continues as chairman and c.e.o. Fulton also retains his title as president of subsidiary Weyerhaeuser Real Estate Co.
Richard Stephens has been named v.p. of operations for the window division of Woodgrain Millwork, Fruitland, Id., overseeing plant operations at Windsor Windows & Doors, Atrium Patio Doors, and Monarch Windows.
Bob Sinclair, Portland, Or., has joined Powers Fasteners as field engineer for the Northwest region. Kent Carlson, Altadena, Ca., is now field technical service mgr. for the Western division.
Philip Stouts has been promoted to v.p.-OSB sales & marketing at Louisiana-Pacific.
Los
Redding,
thunderboltnw@ verizon.net
Ron Knutson, Ace Hardware Corp., Oak Brook, Il., has resigned as v.p.-finance.
Brett Radtke, Las Vegas, Nv., has been promoted to California/ Nevada South district mgr. for ABC Supply Co.
George McCart now handles U.S. business development at Brite Manufacturing, Bolton, Ont.
Alan H. Barry has retired as president and chief operating officer of Masco. C.e.o. Timothy Wadhams has added the title of president, and executive v.p. Donald J. DeMarie, Jr. will serve as c.o.o.
F. Duane Ackerman, Ari Bousbib, and Karen Katen have been appointed directors of Home Depot. Helen Johnson-Leipold has resigned from the board. John Clendenin. Claudio X. Gonzales. Milledge A. Hart III, and Kenneth G. Lagone will retire from the board in May.
Carl Liliequist, Honolulu Wood Treating, Kapolei, Hi., and Tom Mauss, Louis & Co., Brea, Ca., were elected directors of the North American Building Material Distribution Association.
Alison Deford, Deford Designs, Costa Mesa, Ca., which has designed ads for LBM companies, won a 2007 Davey Award from the International Academy of the Visual Arts. Moore Orless is now in charge of discount programs at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Weaver Lumber is the new name for three yards-two in Redding, Ca., and one in Anderson-owned by Brent Weaver.
Weaver took over Hughes Discount Building Materials, Redding, from his father two years ago. Soon after, he opened a lumberyard in Anderson. Last October, he bought Hughes Redwood, Redding, from his uncle.
"I want to establish our rightful place in the community as the oldest family yard by upping our game," he said, which includes winning pro customers away from local competitors Meek's Lumber and Moss Lumber & Hardware. "In the next l0 years," he said, "I want Weaver Lumber in the same conversation with Moss and Meek's."
0ur two-coat process starts with an atkyd seater to btock tannin migration, fotlowed by a high-performance acrytic primer. The result: RESERVE quatity, inside and out.
Made of quatity, ctear, finger-jointed Western Red Cedar or Redwood, these products are naturatty designed for exterior use-both species are ideaI for enduring extreme weather.
RESERVE products come in a wide range of sizes, lengths and finishes. Whether the project catts for 51S2E or S4S, we offer tengths ranging f rom 16' to 20'. Pattern stock is atso avaitabte. tx4 - Ixt2 s/ay\ - s/ax!)
2x4 - 2xI2
Our Siskiyou Forest Products RESERVE line is specially manufactured and treated to create the highest quality product available. Using state-of-the-art application and curing equipment, our premium Western Red Cedar and Redwood stock is made to last for many generations. We are proud to offer a beautiful, durable product that is ready for installation and final painting the moment it reaches the craftsmen.
The family that founded Gap and owns Mendocino Redwood Co. wants to invest $200 million to restore and responsibly log Pacific Lumber's redwood forests-but only if current owner Charles Hurwitz and his company, Maxxam, are ousted.
Donald and Doris Fisher made the proposal December 21, when Palco's case returned to federal Bankruptcy Court in Corpus Christi, Tx.
Environmentalists - long-time Hurwitz criticsconsidered the proposal "a vast improvement over the current situation if Mendocino Redwood were to become the owner."
Counsel Frank Bacik said Pnlco stands behind its own reorganization plan and believes its logging practices rival
those of Mendocino. "I would say that we are both good stewards of the land," he said. "We both have a habitat conservation plan. We both have sustained yield plans."
Palco also presented a revised plan to sell nearly 22,000 acres of timberland for higher-density developments, rather than the 60-acre "trophy" parcels previously proposed. Bacik noted Pnlco would build all necessary infrastructure as well. Its plan to sell most of the remaining 6,600 acres of old-growth redwoods to a buyer committed to permanent protection remained unchanged.
Creditors were given until January 30 to present their own reorganization plans. By April, the presiding judge will consider all plans and decide who gets to own what.
A half-dozen southwestern Oregon lumber companies have joined forces to address regional rail closures that have severely hindered their shipping abilities.
Roseburg Forest Products, Roseburg; Keller Lumber, Roseburg; Swanson Group, Glendale; Douglas County Forest Products, Winchesteri C & D Lumber, Riddle; D.R. Johnson Lumber, Riddle, and two non-lumber firms formed the Coos-Siskiyou Shippers Coalition.
Roseburg's Allyn Ford, chairman of the group, said its purpose is to "organize the shippers so they can speak with one voice and get a seat at the table where decisions are made that negatively impact economic interests in all of southwest Oregon."
In October, Central Oregon & Pacific Railroad abruptly closed its Coos Bay-to-Eugene line and is considering mothballing its Siskiyou line, which runs south through Medford into Califomia
L0S ANGELES Hardwood Lumberman's Club visited Kenneth Tinckler at home in Los Angeles, Ca., to present the first Founde/s Award for his contributions to LAHLC. (L-r,) Deonn Deford, Mark Michi, Ken & Jo Tinckler, Bob Mitchell, Walter Ralston, and (front)Alan Bohnhotf,West'ernWoodhesentingConpany prides itself in ca,rrydngthe right hwentory mdr ofpressure treated' andfre retardont treated l,umber and ptryuoodfor yoar last in timc,, t eed,s,
A homc can now be constructed witb built-in protection against termites andfungal decay using Advance Guard' Borate Pressure Treated Wood Produ-cts. Aduance euard is iafe*foi ptopit and pets but deadfu to tennites, many other wood-destroying insects andfungal deciy.
Advance Guard borate pressure treated lumber can be used for joists, studs, rooftrusses, rafters, beams, and ottrer interior framing and sill plate applications.
Advance Guard borate trealed plywood can be used for wall sheahing and subfloors.
Adance Guard products have been issued IC,C-ES legacy Report NER 648 and are building code compliant.
- Naturewood products are durabre and designed for rong-
Osmoseo FirePRO' - FirePRO is the most advanced fire protection slatem available for wood. We manufacture and stock a complete line of common use items including dimension lumber, pllwood and timbers. Treating serrice only (TS0) is also available.
Osrnose' pressure treated CCtl - We manufacture and stock a lirnited inventory of CCA (Chrornated Copper Arsenate) treated plyrood and large timbers for approved commercial and industrial applications. Call us to discuss your needs.
\o qaantity is too big or too srnall. We can do multiple truckloads orJust afew pieces, wbateaer Tour needs may be. Don't carry more inumtory than you need, Rely on us to be your #1 suppli.erforAdaance Guard, NatureVood, FirePRO and CCA trested wood.
e WLES-T-E-BN-W-O.OP P.o. Box rzio r3riZehnder street sumner rvA es3e0-o25o ffi PRESERVING CO. Qsi) s63-81)1 o www.westernwoodpreservins.com
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By Christopher Eckrich and Stephen McClure
Agro* over time. it is highly likely that, at some point, a family member will ask or be invited to provide services or be a supplier to the family business. A variation on this theme is a family member who seeks to own a franchise or an independent distributorship. While this practice is not inherently either good or bad, we see businesses split on whether using family members or their firm as vendors is a good idea.
Consider this: Your sister Karen has just gone into the catering business. You want to champion her business and encourage her by hiring her firm to cater all company entertainment functions that affect your reputation and image in the marketplace.
But you pause... What will you do if her firm's product or service is substandard? You have a duty as the c.e.o. to protect your business's reputation for quality. Furthermore, you begin to wonder whether your cousin. a small minority shareholder who works as a CPA, will now expect to handle the firm's tax work. You already have an experienced and trust-
ed accounting firm that is delivering a good product at a good price.
Scenarios like this often lead family business owners to implement a policy that family cannot be used as vendors or suppliers of any kind. This firm rule avoids the potential conflicts identified above and is a popular policy for many family business owners. But what if you already employ a family member as a vendor or believe that a family member's firm can provide a superior product or service?
Family businesses that engage family members as vendors are encouraged to consider the following:
Clearly state expectations for quality and service, as you would for any other vendor. To reinforce the expectation of a business-to-business relationship, rather than that of a family member to family member, put your expectations into a friendly but clearly worded memo. The memo should clarify the expectation for a successful business relationship and identify quality and service expectations so that they are clearly stated by the other party. This memo can be shared with others-with affected managers and employees in the business, as well as with family members-to accomplish the next point: transparency.
Seek transparency among family owners about the nature and scope of the work provided. All interested parties should be aware of any business relationships between family owners/members and the family business.
Talk openly about the effectiveness of the business relationship in whatever forum makes sense for your family business. In some cases, the right forum is a family meeting with the principals on both sides of the business relationship. Or it might be a management meeting. These discussions work well as long as there is an effective supplier/customer relationship. If something has gone wrong,
however, see below.
Put the services upto-bid to multiple vendors on a regular basis (usually every one to two years) to assure that pricing stays competitive. This does not have to be a cold approach that sends the message that you do not value an existing business relationship, rather do it in a way that simply allows you to assess your needs. If you are paying a little more for the relationship and value doing business with a trusted relative, understand that and make sure everyone else does too.
If you are paying less because the family vendor is giving you "a deal," be clear. but beware. This kind of arrangement can backfire if there is an assumption on the family vcndor's part that reduced quality and service are "okay" because of the financial consideration he or she is giving.
If you find that you are paying too much, you will have valuable information for a negotiation discussion with the family vendor. Another good practice is to initiate a contract term and let the family vendor know that the services will have to be renegotiated at the conclusion. At that time, evaluate the business relationship and consciously decide whether to continue or make changes.
To minimize conflict, present the proposal to the board (independent, objective outsiders on the board help here) for review and approval. A family vendor, knowing that this is a step in the process, will increase his or her own attention to the professional nature of the business relationship.
Annual reviews of existing family vendor relationships at the board level also are a good practice. In larger family firms, consider appointing a committee of several outside directors (two to three) and key managers (one to two) to review all family vendor and supplier relationships. Some family firms already may utilize a compen-
sation committee to revierv family member hiring and eompensation decisions, and this committee's scope could be expanded to include family vendors.
Use the nclrmal rnethod of making changcs to your family employrncnt policy to add a policy statcmcnt about family supplicr and customer relationships. We hopc your process involves a meetin-e of farnily members so that expectations are communicated and broad acccptance is promoted.
Fix the relationship if it's broken. A severed business supplier relationship can be like a divorce. It is either messy or not, usually dependin_r upon the civility of both parties. not just one. However, after exhausting all genuine efforts available to fix the relationship, make a clean break if that is the only remaining option. In many cases, severing a business relationship r'vith a family vendor is like firing a farnily member.
Finally, rve hope your business-tobusiness relationships ri'ith family members are successful. We fi"equently hear of the mutual benefits received r'vhcn they are rvorking ivell. But the key to this success is a professional and formal business rclationship on both sides.
- (.'hri.rtophar EckriL lt uttl Stalthut McClLtrc ure prirtt'ipuls ytitlt the I''untily IJ tt.s rrc s.s C r t rt.s u I t rt g G rt t Lt 1t, A t I u n tu, G u. ; (800) 551-06-l-1. Dr. Et'krich cart be re u c h e tl o t et'k r i c h @ e.f u r n i I y b u.s r e.s.s. c t ntr, Dr. McClure at rncclure@ e.furttiltbu.siness.com. Reprinted rritlt lterni.s.siott.front The Family Bu.sines.s Adtisor, u toptrightetl publicatiort oJ Furnilt Enterpri.se Publislrcrs. No portion ol this ttrlicle nrr be reproduced witltout permis.siott ol Famih Enterprise Publislrcrs.
(Continuetl .ffutrn page I I 1 core d-i-y business. Another example: CertainTeed sold its r,vindoivs business, desiring to refocus on core products und make l-ulther acouisitious lvith a better fit.
The pace of acquisitions hasn't been robust yet because a valuc gap persists. Arvare of the markct bottom. most sellers are hoping to hold clut for a rebound to ensure a hi-ther price. Where once building products sellel's were on average offered 7x EBITDA. nor'v 6x is more realistic. If the markets don't turn around in a timely fashion. sellers i.vill come to the realization it is better to get 6x today than
to hold on for something that may not materialize for some time. That rvas certainly the case with Home Depot, rvhich in August slashed the price of HD Supply fiom $10.3 to $8.5 billion after the investmcnt banks financing the deal threatencd to lvalk alvay.
In recent months, strategic sellcrs have started a conccrtcd effclrt to buy bolt-on or complemcntary businesses-Fiber Cornpositcs rvith WeatherBest. Builders FirstSource lvih Bama Truss. Alternative Construction Techncllogies with Revel Constructicln. Allied lvith Florida Waterproofing Supply, and Pro-Build rvith Crosslin
Supply. And now Pro-Build is after HD Supply's lumberyard operations.
As more small LBM companies suffer earnings and sales setbacks, expect the strategic M&A pace to quicken. Changing industry dynamics, such as a need for scale, full product lines. and gcographic fbotprint, cclupled rvith -uood dcal valuations. ',vill drivc rnuch of the activity in 2008.
Ni,lt,'l,t.t V. B<'tttt' i.t tt tttrtttttyittq dircLtutr uI Stapltatt.s Itrc., Littlc Rotk, Ar., +t'lterc lte .spet'iulilc.s itt building pro(lu(1.\ utrd constru(liot .san'ices invc.rtnrcri bunkirtg. Reuch ltim at (214) 258-2717 or rti< k.lrcrtr, Q .\t(Irlt(tt.\.t t'tn.
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Bosed in Annopolis, MD, Fletcher Wood Solutions is the lorgest monufccturer of defect-free, oppeoronce grode rodioto ' tIITCHER' pine products in New Zeolond. Dis- MoUID|NGS tributing our cleor boords, mouldings, LIFESPAN treoted wood, ond lumber to the Norih Americon morket throuqh our proven ono comprerery Inregroted F
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Deck Soacers from Innovationi reportedly spacing of deck boards tect deck joists.
Deck Product enable precise and help pro-
include a GM 4.3L V6 engine, onboard Pacesetter VSM computer, DuraMatch transmission system, and auto-deceleration systems.
- Vi s it www. hy.ste rame ricus.t'om
Metrolife porcelain tile from Meditemanea has the look of stained concrete floors.
Produced in the U.S., the collection uses random mixing of colored clays to create a highly textured surface with shading and movement.
Kerfkore's econoKore MDF panels have two-ply construction for consistent size and thickness.
Distributed by Simpson StrongTie, the spacers clip onto deck joists to ensure evenly spaced deck boards. They help prevent rotting by diverting debris and moisture away from joists. Made of UV-resistant plastic, the clips come in three colors: gray, brown and tan.
- Please call (800) 999-5099 or vis it www. strongtie. c om
Fortis sit-down, counterbalanced lifts from Hyster are designed for maximum productivity and superior operator comfort.
Three preconfigured power-train bundles are available, as are cushion or pneumatic tires. Other features
Five different tile sizes are available. along with bullnose accessories and two different styles of meshbacked mosaics mounted on l2"xl2" sheets.
- Please call (305) 718-5091 or v i s it www. me dit e rrane a - u s a. c o m
Progressive Solutions has developed two new bisTrack options for mobile stock management using hand-held devices.
Mobile PO/Stock Verification software verifies stock levels, prices, and descriptions so a purchase order or new bin label can be requested. Mobile Inventory Count allows physical inventory information to be entered directly into bisTrack.
Both ootions run on Windows Mobile device and link mobile staff directly to the central bisTrack system.
- Please call (877) 746-4774 or visit www.pro gre s sive -s o lutions. com
Each bendable panel weighs just I lb. per sq. ft. and can be curved up to a 6" radius, reportedly with less labor and at a lower cost.
Both 4'x8' and 8'x4' are available, faced with poplar plywood or highdensity fiberboard.
- Please contact (800) 637-3539 or visit www. ke (kore.com
Seal-Krete's Lock-Down bonding primer is designed for concrete surIaces.
The product uses nanoparticles to penetrate and seal concrete, to provide a clean, sound substrate for paint or decorative topcoats.
It is water-based, low VOC, and covers up to 500 sq. ft. on smooth concrete floors, or about 250 sq. ft. on broom-finished concrete.
- Please call (800) 323-7357 or visit www. s e al-krete.com
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I)r'oSpec rs lolnrr,r latecl tor c1 uicl< lcpairs trl lloor q()Llgcs. enteks. ltnrl liclges plior to instullation ol lloor covefiltgs.
The ccnrcnt-busccl. milden rcsistant prorlLrct is nroclificil rr itlr polrmcrs to cnsirrc bonding rrith it ticlc r arie-tr ol propcrlt' preparccl sulllce-s.
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C'or cr'-Stain \\'B rcpor.tcrllr ollcr: good udlrcsion. fast dn ins. clrsr slrnrl ing. ancl thc abilrtr t() co\ cr- botlr l utcr'- ancl oil-bascd stairrs.
Thc coiitit.tg also hidcs clark colors. sclls porous stttluccs. lurd covcls lrll t\ l)cs 01'\\ ood.
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rity lock. The deluxe model has a key/jewelry rack, padded jewelry tray compartment, and document holder.
- Please visit www.nutone.com
Knaack's Monster Box series of storage chests offers a durable and secure option forjobsites.
With two fixed shelves and a hanging rack, the Piano Box has a storage capacity of 48 cu. ft. The Cabinet Box has the same capacity, with two fixed, full-width shelves, one adjustable full-width shelf, and shelves in the door. The Chest holds 3l cu. ft. and is designed with a deep cover for strength and security.
All three have integrated recessed locks, weatherproof Power Pass grommets for pass-through of electrical cords, and heavy-duty hinges.
- Please call (800) 456-7856 or visit www.knaack.com
ReusaEie mixing bags frdm Cement Solution promise to eliminate messy cleanup associated with concrete projects. Each bag reportedly mixes up to an 80-lb. bag of readymix concrete in less than a minute. Just place a bag over a sack of ready mix, tip over, add water, and rock the bag back and forth for 30 to 45 seconds.
- Please visit www.cementsolution.com
NuTone security cabinets can be located anywhere in a home to store important documents and valuables.
Both the standard and deluxe models have a tamperresistant painted steel door, rust-resistant painted steel body, concealed hinge, adjustable shelves, and keyed secu-
AT LP. WE ENGINEERED oun LP Sor.roSrenr
I-Jorsrs ro sr 667o wrDER THAN YOUR TYPICAL LUMBER Jorsrs. Tger' MEANS MORE STABLE FLOORS WITH LESS BOUNCE AND FE.WER HEADACHES FOR BUILDERS.
Trrer's wHAT wE Do. Wn rurexu rHE PRoDUcrs THAT BUILD THE HOMES. SIMPLY BETTER.
Centurion fingerjointed radiata pine trimboards from Claymark New Zealand are triple-protected for long Iife and dependable performance.
Using the patented TruCore process, boards first are treated with a water-based, eco-friendly preservative that penetrates to the core. As a result, cut surfaces, end and drilled holes do not require re-treatment at the jobsite.
End Cuts coating from Ze-VO Products Group is designed to seal and protect the cut ends of preprimed lumber and siding.
solid PVC.
The line replicates the appearance of cedar, but reportedly resists insects and moisture, and will not rot. warp or decay.
Next, a 1O07o acrylic protective primer is applied, followed by a highbuild acrylic undercoat.
The TruCore Drocess is free of VOCs, heavy metals, arsenic chromium, or similar materials.
It offers a25-year warranty.
- Please call (877) 287-4406 or v is it www. claymark.com
The sealer reportedly keeps water from entering through an end cut, ensuring a longer life for the wood substrate.
The water-based, low-VOC product also preserves most coating warranties.
- Please call (508) 879-3151 or v is it www.zev oproduct s g roup. c om
NuCedar's Weatherboard combines the look of classic beaded clapboards with the easy maintenance of
Each board is coated with Sherwin-Williams' Polane polyurethane. a baked-on finish available in 22 standard and 1,400 custom colors.
- Please visit www.nucedar.com
Pro-Build Holdings, Denver, Co., has agreed to purchase the lumber and building materials operations of HD Supply, Orlando, Fl.
Less than five months ago, Home Depot sold HD Supply to three private equity firms-Bain Capital, Carlyle Group, and Clayton, Dubilier & Rice-for $8.5 billion.
The LBM division, which provides about 40Vo of HD Supply's nearly $5 billion in annual sales, includes 39 lumberyards in Georgia and Florida, 32 truss plants. a construction services division. and l0 engineered wood plants. Some continue operating under the names Williams Bros. Lumber, Cox Lumber, and Forest Products Building Materials.
Pro-Build, the nation's largest pro dealer, operates more than 520 locations in 40 states.
Soon after announcing the deal, HD Supply agreed to sell its Rheem/ Ruud HVAC operations to Watsco Inc., Coconut Grove, Fl.
The deal includes former Hughes Supply and Apex Supply facilities, primarily in the Southeast. HD Supply
84 Lumber Co. eliminated nearly 40 jobs at its headquarters in Pennsylvania and closed l2 stores in nine states, including its store in Redding, Ca.
The Redding location is being shuttered because new construction levels in the area are significantly below the level that 84 Lumber officials believe is needed to support stores.
In the West, a store in Merced, Ca., is being converted into a structural components plant. When the current closures are complete, 84 Lumber will have 415 stores and 20 component plants nationwide.
Five closures in the Midwest and Northeast are in metropolitan areas served by other 84 Lumber locations, while four in the Southeast were described as relocations because larger stores that can serve a broader area have been built nearby.
At headquarters, the layoffs will take place mostly in human resources, purchasing, and development. Because about half of affected employees will move to other positions, only 20 will actually leave the company. Similar cuts took place in June and about a year ago, said 84's JeffNobers.
will retain its plumbing operations.
Simpson Lumber, a subsidiary of Simpson Investment Co., Tacoma, Wa., has reached agreement with International Paper to purchase three of its southern lumber mills and a sales office in Wilmington, N.C.
"This sale is a positive step for our mill and our employees, following a two-year study of strategic options for this facility," said Sandy McCorvey, manager of the Sampit Lumber Mill in
Georgetown, S.C. The other mills are in Johnson, S.C., and Meldrim, Ga.
"We've been interested in the southern pine lumber business for some time," said Ray Tennison, president of Simpson. "This acquisition diversifies our business and provides opportunity in a new geographic region for Simpson. Each of the three facilities has a well qualified management team and workforce, and they are a good fit for our continuing strategy to acquire operations that enhance our long-term business plans."
The sale is expected to be completed early in first quaner 2008.
LACN'S 2nd Growth held its annual holiday meeting Dec. 6 at the Sheraton, Cerritos, Ca. (1) Russ & Andree Primrose. (2) Jean Hennings, Chris Parker, Charlene Valine. (3) Blair Simmons, Jessica Wright, Steve Lawrence. (4) Barrett Burt, Terry Rasmussen, David Abbott, Mike Carey. (5) Sean Cummings, Efrain Patino. (6) Shalana Nelson, Jason Schulze. (7) Larry Christenen, Stacey & Chris Freeman, Steve Robertson, Karen & Chuck McKay, (8) Karin & Tom Angel. (9)
60 TuB MnncsnNr MtclzrNo Jnuunny 2008
Sal Camarda, Doug Willis, Jack Butler, (10) Allison & Deonn DeFord. (11) Tim Phipps, Cesar Ortiz, Jon Schroeder. (12) Adam Shenruood, Mike Shumaker, Rigo Castellanos, Kim Dickens, Rick Beckwith. (13) John Neal, Judy Grinder, John Allen. (14) Richard Coale, Karen Lewis, Mark Huff. (15)Al Reed, Janeece Lawder, Bill Ferguson. (16) Jill Steiner. Frank Snoddv.'(More photos on next page)
(continued from previous page): (1) Randy Jackson. Jim Nicodemus. Ed Wyche. (2) Graziella Terranova, Gerry Perez. (3) Jennifer & Scott Derham. (4) Ron Reed, Mike Mische. (5) Bob Schmidt, Chris Garcia, Mike Logsdon, Craig Larson. (6) Jason & Melissa Womack. (7) Endy Flores, William Worra. (8)
Arlene Smith, Bill Humphrey. (9) (back row) Thanh Quach, Rick Deen, Tyrone Smith, David Tait, Mike Carey, Adam Sherwood,
Home Depot has filed a lawsuit against the city of Los Angeles, saying a councilwoman unfairly blocked a new store by voting to require an environmental review and helping neighborhood groups challenge the project's original building permit.
"The councilwoman's office aided and assisted the opponents to the project and, at the same time, sat as the judge on whether the project can go forward or not. She should not have been both," said Jeff Nichols, who heads Depot's real estate division in the West.
Councilwoman Wendy Greuel called the suit "absurd" and said she was ensuring that Depot complies with the city's planning and zoning laws.
In July 2006, the city's Department of Building & Safety granted a permit allowing Depot to open in a former Kmart building in Sunland-Tujunga.
One year later, the city council voted to revoke the permit after a zoning administrator concluded that the project needed to go through a lengthier environmental review. Depot contends that only an over-the-counter permit is needed because the project involved renovation of an existing building.
Local neighborhood groups believe Depot is trying to circumvent the city's environmental review process. "It is unfortunate that Home Depot continues to pursue their own interests, rather than a real resolution and partnership with the local community," said Abby Diamond, a spokesperson for the community group known as the Sunland-Tujunga Alliance.
Home Depot's lawsuit also contends that the city council should have recognized that opponents of the project were funded by a homegrown competitor, California Do-It Center.
Lumber mills throughout British Columbia are continuing to cut back production.
Hampton Affiliates, Portland, Or., is cutting production by 40Vo at two sawmills in the Burns Lake area, Babine Forest Products and Decker Lake Forest Products, for at least the entire first quarter of 2008.
Ainsworth Lumber extended the holiday curtailment at its OSB mill in 100 Mile House, B.C., from December 20 to January l, due to a decline in orders. It also indefinitely closed its High Level OSB mill Dec. 20.
Canfor will shut its Chetwynd sawmill for an indefinite period, starting in late January or early February, once existing log inventories are depleted and finished products are shipped.
"With this announcement, Canfor has restructured its production to reflect market realities," said Canfor's
Lee Coonfer.
Another 300 Canfor employees were laid off indefinitely last month when shifts at its Rustad, Clear Lake, Polar, and Mackenzie sawmills were reduced from three to two. Its panel and fiber mill in New Westminster was closed permanently January 8.
Tolko Industries eliminated one shift at its Soda Creek mill, putting 20 out of work. Over the past months, the company has cut shifts indefinitely at four mills and taken temporary rotating curtailments at all 10 sawmills based on each mill's performance.
Interfor also has used temporary curtailments to bring supply in line with shrinking U.S. demand. The only exception is its Queensboro sawmill in New Westminster, which closed before last summer's forest-workers strike and never reopened.
"We are looking at each of our operations and the fundamentals of continuing to run them during these
severe conditions or taking some temporary or permanent closures," said v.p. Ric Slaco.
While denying any wrongdoing or violating antitrust laws, GeorgiaPacific and Ainsworth have reached tentative settlements in a price-fixing lawsuit filed against OSB producers.
G-P agreed to pay $9 million and Ainsworth $8.6 million, and both would cooperate in litigating claims against the remaining defendantsLouisiana-Pacific, Potlatch, Norbord, Weyerhaeuser, and Tolko. J.M. Huber settled last spring for $2 million.
A trial against the remaining defendants is set for March 25. Plaintiffs include dealers and wholesalers.
Ainsworth said, "The decision to enter into the settlement agreement was based solely on the need to avoid prolonged, expensive litigation."
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MARY'S RIVER LUMBER CO.
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Rates: $1.20 per rvord (25 word minimum) or, if contains artwork or oversized type, rate is by the column inch (2-l18 inches wide): $65 ifwe set the type, $55 if ad is furnished "camera-ready" (advertiser sets the type). Phone number counts as I word, address as 6 words. Headline or centered copy, $9 per line. Border, $9. Private box, $15. Send ad copy to Merchant Magazine, 4500 Campus Dr., Ste. 480,
We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation. 607o split for trader. Call John at Lakeside Lumber at (623\ 566-7100 or email lakesidelumber@cox.net.
Shamrock Building Materials is seriously looking for the right individual to head up the sales staff at our Sacramento distribution and reman facility. If you know the California and Nevada markets, and are willing to lead by example, this could be a financially rewarding position. We offer health and retirement benefits, and are anxious to make this venture successful. If this sounds interesting, give me a call or send your resume. Dave Gambee, president, (888) 742-6763; Shamrock Materials, P.O. Box 80 I 28, Portland, Or. 97280.
Newport Beach, Ca. 92660. Fax 949-852-0231, dkoenig@building-products.com, or call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: I 8th of previous tnonth.
To reply to ads with private box numbers, send correspondence to The Merchant. c/o the box number shown. Names of advertisers using a box number cannot be released.
www.poleframebuildings.com
San Antonio Construction Co. Contractors license 291 259 B1 Toll Free l-(877) 825-3548
Mike Esposito
FOR
UP: Northern California mill with established customer base selling direct to contractors and developers in the high-end commercial/housing industry. 20acre facility, UP rail spur, milling facility manufacturing wood siding and interior millwork. Excellent turn on receivables. Great opportunity for those looking to enter the high-end market with a team of professionals with excellent industry contacts and experience. For more information, contact dkoenig@building-products. com or Box 709, clo The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660: Fax 9 49 -852-023 l.
Jerry Orem, 85, founder of Jerry's Home Improvement, Eugene and Springfield, Or., died Dec. 13 from complications of a stroke he suffered in 1991.
Before Jerry's, he worked with his father and two brothers at a sawmill they owned in Newport, Or. When they ran out of timber to harvest, they began building homes in Newport, with supplies purchased at a cousin's building supply store in Salem.
Jerry's was started in 1961, with $5,000 of inventory in a warehouse bought out of bankruptcy. Unlike other businesses, Jerry stayed open all day Saturdays and Sundays and soon grew to have nearly 600 employees.
He retired in l99l after the stroke affected his speech and mobility, so his son Dennis Orem became president and c.e.o.
Robert A. Macfie, 83, longtime Northern California lumberman, died Nov. 30 in Emeryville, Ca.
After graduating from the University of California, Berkeley, he served in the U.S. Navy as a pilot for 20 years and retired with the rank of commander.
He started his lumber career in the early 1960s, at a small lumber wholesaler in San Rafael, Ca. He joined Georgia-Pacific in the 1960s, where he became a western regional salesman. When Louisiana-Pacific split off from G-P, he served as Northern California-based western regional sales manager for L-P until he retired in 1978.
Roy Earling Fritch, 90, founder of Fritch Mill, Snohomish, Wa., died Nov. 25 in Snohomish.
Mr. Fritch served in the Navy during World War II, aboard the U.S.S. St. George in the South Pacific. Following the war, he continued his studies at Washington State University.
He founded the mill in 1950, which quickly grew to a full-time family business. ln 1976, he retired and left leadership of the mill to his sons.
Steven Michael Allen, 48, coowner of QB Corp., Salmon, Id., died in a plane crash Dec. 10.
Mr. Allen served in the Army for a
short time, and then went to work for Noranda Mining.
After the mine closed in 1983, Mr. Allen began working in the glue room at QB Corp. He worked his way up to eventually become co-owner in the early 1990s.
The company-owned plane crashed shortly after take off from the Salmon airport, headed for a business trip in Las Vegas. Also killed was pilot John Gallogly,6l.
Co-owner Mike Lane and employee Bob Butch survived the crash.
Ken Hendricks, 66, chairman, c.e.o., and founder of ABC Supply, Beloit, Wi.. died Dec.2l after he fell while checking construction on a garage roof at his home in Rock, Wi.
He grew up working for his father's roofing firm in Wisconsin and started his own company at age 21. When he grew tired of dealing with multiple suppliers around the country, he and his wife started ABC Supply in 1982.
Forbes recently listed his net worth at $3.5 billion, making him the glst richest person in the U.S.
Home Depot will merge two upscale catalogsl0 Crescent Lane for furnishings and Paces Trading Co. for lighting-with its company-wide catalog and website. The niche catalogs debuted in October 2005 and were mailed to one million consumers.
"As we monitored the progress of the direct business, it became apparent that HomeDepot.com and the Home Depot Direct catalogs were drawing the most traffic," said
spokesperson Jean Osta Niemi. Catalog consultant Ken Lane believes the catalogs showed that Depot was testing the market for higher-end items. "I see these titles as part of an overall strategy to own the channel and to cast a broader product net," he said.
Outdoor Living, an upscale title launched last March, and Home Decorators Collection, a d6cor catalog acquired in April, will continue to operate as separate entities.
MODESTO
348-1400
Biq Creek Lumber Co. (Atwater/Merced) ......(209) 356-1433
Cdnrad Wood Preserving C0........................(800) 499-2662
Thunderbolt Wood Treating(800) 826-8709 (209) 869-4561
REDDING / RED BLUFF
Gemini Forest Products.................,,.,............(530) 223-7440
Pacific Wood Preservin9.......,..,,,..................(530) 824-9400
Shasta Cascade Forest Industries, Inc..,,,....(530) 243-0500
Shasta Green Inc. ................,..,,,.,.................(530) 335-4924
Sierra-Pacific Industries..,,,.,,...................,....(530) 378-8000
Siskiyou Forest Products ...(800) 374-0210 (530) 938-2771
Western Woods, Inc..................,,,.................(800) 822-8157
SACRAMENTO / STOCKTON AREA
Arch Wood Protection ............,,,..,,................(530) 533-7814
BMD....................... ......(800) 356-3001
Calilornia Cascade Industries,,,..,.................(91 6) 736-3353
Calilornia Lumber Inspection Service............(209) 334-6956
Capital 1umber........,,,...,,...(209) 946-1200 (866) 946-2280
Capitol Plywood...... ......(916) 922'8861
Hoimes Lumber Co., Fred C, (Marysville),,,..(530) 743-3269
Kelleher Corp. (Roseville),,...............,..,........(91 6) 788-0900
Lausmann Lumber,.,,.............,,..,,..,..............(800) 626'1 233
Lumber Assn. of California & Nevada........,,,(916) 369-7501
Cedar Valley (Hollister)..............
SAN FRANCISCO BAY ABEA
.......(866) 202-9809
Beaver LumberCo. .......(831) 636-3399
Biq Creek Lumber Co, (Half N4oon Bay)........(650) 560-9749
Cdlifornia Forest Products..............,..............(831 ) 634-01 00
California Redwood Association....................(415) 382-0662
Kelleher Corp. (Blackloot).................,...........(415) 898-6366
Kelleher Corp. (San Rafael)............,.............(415) 454-8861
North Pacilic-No. Ca. Distribution..................(800) 505-9757
Osborne Lumber Co .,,..,(510) 793-3838
Pacilic Wood Preserving...................,,..........(800) 538-461 6
Bedwood Empire.... ...,,..(800) 800-5609
Simpsbn Strong-Tie Co.
BEND
Malheur Lumber Co. (John Day).........
COOS BAY / NORTH BEND
Conrad Forest Producls
Coos Head Forest Producls..,,,.,.......
Warm Spring Forest Products (Bend)
EUGENE / SPRINGFIELO
American Laminators (Drain),..........
Lumber Products......
l\4cFadand Cascade ......(800) 426-8430
Hosboro Lumber..... .......{541) 746-841
Western Woods, Inc.,,...................................(800) 822-81 57
Weyerhaeuser Building |V1ateria|s..................(877) 235-6873
MEDFORD / GRANTS PASS
Allweather Wood Treaters.,...........................(800) 759-5909
Eagle Plywood Specia|ties...........,,,,,...........(800) 547-5991
Lumber Products.... .......{541) 773-3696
Malheur Lumber Co ......(541) 575-1 148
Norman Distribution lnc.................................{541 ) 535-3465
Pacific Wood Laminates................................{541 ) 469-4177
Swanson Group Inc................,..,...................(541 ) 956-4300
Waldron Forest Products...............................(541 ) 474-3080
McMINNVILLE / C0RVALLIS / SALEM
Capital Lumber ,..... .............(541\ 223-0020 (866) 898-1 1 28
Forest Grove Lumber C0........................,...,..{503) 472-31 95
lVlary's River Lumber...........,,........................(800) 523-2052
Royal Pacrfic Industries......,..........................(503) 434-5450
Weyerhaeuser
Lumber Products....
North Pacific.....,..,..
OrePac Building Products..........................,,,(208) 345-0562
QB C0rp,.,............... .....(208)756-4248
Thomas Forest Products, J.|V|.......................(800) 962-8780
COEUR D'ALENE
Bennett Forest Industries (Coeur d'Alene)....(208) 664-3299
Braided Accents...... ...,,(866) 440-9663
LEWISTON
ROSEBURG
C&D Lumber Co. (Riddle).............,,,,,,,.........1541J 874-2241 Hoover Treated Wood Pr0ducts....................(800) 531-5558
Johnson Lumber Co., D,R,............................1541) 874-2231
Keller Lumber C0.,, .......(541) 672-6528
Riddle Laminators ......(541) 874-3151
Roseburg Forest Products............................(800) 347-7260
FERNOALE
Allweather Wood Treaters................. .(800) 637-0992
SEATTLE / TACOMA AREA
APA-Engineered Wood Association.............(253) 565-6600
Boise Distribution (Woodinville)................ .....\425) 486-7477
Capital Lumber Co.. ......(253)779-5077
Kelleher Corp. ..............(206) 735-5780
Lewis County Forest Producls......................(866) 336-9345
Lumber Products.... .......{800) 577-6967
Manke Lumber Co.. .......(800) 426-8488
Mason County Forest Products.....................(866) 336-9345
McFarland Cascade ......(800) 426-8430
OrePac Building Products.............................(253) 582-9500
Simpson Timber Co .......(206) 224-5000
Welco Lumber........ .....,.{360) 681-7444
Western Wood Preserving C0......... ..............\800) 472-77 14
Weyerhaeuser Building Materia|s..................(877) 235-6873
Weyerhaeuser Structurwood..................,...,..(800) 523-0824
Bennett Forest Industries (Grangeville).........(208) 983-001 2
Coos Head Forest Products.........................(866)
Bt\4D ...,...,.,..,........
Capital Lumber Co.
Forest Products Sales,,
Lumber Products....,,,,,.
Thomas Forest Products, J.|VI....,.,.,.,.,..........(800) 962-8780
Utah Wood Preservin9.,.......................,,.,,,...(800) 666-2467 (801 ) 295-9449
Weyerhaeuser Building Materia|s......,,.,..,...,.(877) 235-6873
or call (949) 852-1990 or mail to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660.
Name (P/ease print)
Phone
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For more information from advertisers, use the Web site in brackets.
Anfinson Lumber Sales [www.anfinson.com]
Arch Wood Protection [www.frameguard'com]........................."'.........4
Cal Coast Wholesale Lumber ..................................26
California Forest Products Co................,... .....'............47
California Timberline Iwww.caltimber.com]..........'................,............27
Capital Lumber Co. Iwww.capital-lumber.com]............................56' 69
Cascade Structural Laminators Iwww.cascadesl.com] ....'....................5
Cedar Creek Wholesale Inc. [www.cedarcreek'com] .'................."""'55
Columbia Vista Corporation Iwww.columbiavista.com] .............'.......41
Colville Indian Precision Pine Iwww.cippine.com].................'.............46
Distribution Management Systems Inc. [www.dmsi.com] '.'....'...........29
Fletcher Wood Solutions Iwww.tenonusa.com].......................'.............53
Fontana Wholesale Lurnber [www.fontanawholesalelumber.com] ....70
Forest Grove Lumber Iwww.fglco.coml ...........................................""'21
Fred C. Holmes Lumber .............................8
r**.trf
Pressure Treated Wood Products Custom Treating Heat Treating (ISPM 15) Rail Service (BNSF) 4#stvs TimberSaye! PT .kFJ*3""_E; 15500 Valencia Ave. Fontana, Ca92335 Fax 909-350-9623
E-mail sales@fontanawholesalelumber.com
Keller Lumber Co. ...............................28
Krauter Storage Systems Iwww.krauter-storage.com] ........'."..............3
Lausmann Lumber Iwww.lausmanlumber.com].........................".......59
Malheur Lumber Co..................... ......................'..........45
Matthews International Iwww.woodmarking.com].......'...'..................15
Maze Nails [www.mazenails.com].............. ..............."'23
Norman Distribution Inc. Iwww.normandist.corn]..................'.........'..67
Parr Lumber.,. ................28
Pennsylvania Lumbermens Mutual Insurance Co. Iwww.palumbermens,com]......
Quality Borate Company Iwww,qualityborate.com]...........................'58
Railing Dynamics Inc. [www.rdirail.com]...... '..............7
Redwood Empire Iwww.redwoodemp.com]..................'..................."....4
Rosboro [www.rosboro,com] ---.-...-----.'.
Roseburg Forest Products [www.rfpco.com]
Shasta Green Inc. .............44
Sierra-Pacific Industries Iwww.spi-ind.com] .....--..-.--.......'..............38
Simpson Strong-Tie Iwww.strongtie.com]....,........'...--...............Cover I
Simpson Timber Iwww.simpson.com] ..................'...............................'35
Siskiyou Forest Products Iwww.siskiyouforestproducts.com]'............49
Stimson Lumber Co. Iwww.stimsonlumber.com]...........'.....................33
Sunbelt [www.sunbeltracks.com].......... ...........Cover III
Swan Secure Products Iwww.swansecure.com] ....................................56
Swanson Group Sales Co. [www.swansongroupinc.com] ....................37
Teal-Jones Group [www.tealjones.com] ....................'.40
Thunderbolt Wood Treating Iwww.thunderized.net] ...........'.."..........48
Utah Wood Preserving Co.. '.................27
Vaagen Bros. Lurnber Inc. Iwww.vaagenbros.com]........................'....36
Van Arsdale-Harris Lumber Co.................... ..'....'.......26
Viance [www.treatedwood.com]........................ ...........10
Waldron Forest Products .....................25
Warm Springs Forest Products Iwww.wsfpi.com] ....................".........44
Weatherbest Decking & Railing Iwww.weatherbest'com]................."24
Western Red Cedar Lumber Association [www.wrcla.org] ..................9
Western Wood Preserving [www.westernwoodpreserving.com] ........51
Western Wood Products Association [www.wwpa.org] ...'...'..............31
Woodfold Manufacturing Iwww.woodfold.com]
Woodtone Building Products [www.woodtone.com].........-.---..........30
Yakama Forest Products Iwww.yakama-forest.com]...........................45
For over 20 years Sunbelt has focused on the Lumber and Building Supply industries. See how Sunbelt has helped the following lurnber yards and lrow we can help you-
