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|TlHene's AN oLD BIr oF BUSINESS

|- wtsoov that goes something like, "You can't improve what you don't measure." It seems appropriate to spend a little time thinking about that. For one thing, it's January, a natural time to assess where we are, resolve to make improvements, and chart a course for the rest of the year. For another, it's a fundamental principle underlying every serious sustainable business initiative.

It's a simple formula: identify the right things to measure, create benchmarks, set goals for improvement, monitor performance, and adjust as necessary. Whether the economy in 20 l0 comes roaring back or stays about the same, it's clear that there are revenue-boosting and cost-saving benefits for companies that get serious about sustainability.

For dealers, the core business is all about the product mix, with basic met- rics tracking sales, velocity, inventory, etc. Assuming staff is trained and products are merchandised well, these metrics can be useful for identifying the poorest performing SKUs to eliminate and which categories to strengthen. But to address the needs and desires of the growing number of "green" customers, these metrics fall short. How many of your products would contribute to LEED credits? What percentage is Energy Star-rated or would qualify for rebates? Which products are heavy energy consumers or contain the most toxic chemicals? And where are they manufactured: locally or the other side of the planet?

Some "big box" retailers and major mainstream product manufacturers have benchmarking programs in place and are mobilizing their marketing teams around them. For example, WalMart introduced its Supplier Scorecard a couple of years ago and last year announced its Sustainability Index Consortium, an effort to define standards for a variety of product categories. They've also announced goals to reduce packaging and increase the number ofgreen products on shelves.

The Home Depot rolled out its EcoOptions program in 2007 with 3,000 products and announced a goal of increasing that number to 6,000 by 2009. Their website claims to have sold over one billion such products since the program's inception.

Proctor & Gamble also announced an initiative to benchmark chemicals used in their products with a goal of reducing toxics. All of these efforts have garnered positive press and "greened" their respective reputations.

The basis of these kinds of goals and marketing claims are the assessments, but these kinds of programs, and their benefits, are not exclusive to big companies. My firm recently helped a group of much smaller companies create green product criteria against which we characterized about 250,000 individual SKUs. The result is a starting point from which these companies can create meaningful business goals, merchandising programs. and marketing campaigns. More importantly, they now have a new set of metrics that will help them measure performance and progress toward their goals.

Imagine a dealer or distributor who wants to become the energy efficiency leader in their market, but they have no idea how many Energy Star or other energy-saving products they already sell. They're literally in the dark with a meaningless, maybe even dubious, goal unless and until they know their starting point. Only after assessing their product mix, can this imaginary dealer resolve to double the number of Energy Star products, properly train and incentivize staff, and begin to make the marketing claims that would lead them to their goal. For real-world dealers and distributors, the benefits of such benchmarking could lead to greater sales, deeper organizational knowledge, and competitive advantages. By any measure, that's not a bad way to approach the new year.

Jay Tompt Managing Partner Wm. Verde Associates (415) 321 info@williamverde.com

BMHC Okayed To Emerge BMC West parent Building

Materials Holding Corp., Boise, Id., received bankruptcy court approval to complete financial restructuring in hopes of emerging from Chapter I I on Ian.4.

"As a result of this process, we will be in a much stronger financial position, having reduced our outstanding indebtedness to $135 million upon emergence," said chairman and c.e.o. Robert Mellor, who under the plan would step down. "We have streamlined our cost structure significantly and have secured exit financing of $90 million to support our ongoing operations and future growth."

Golorado Ace Owner Stricken

A series of business setbacks may have contributed to the brain aneurysm that put an Ace Hardware owner in Colorado into intensive care.

Vicky Anderson, who co-owns the store in Wellington with her husband Doug, was stricken on Oct. 2S-just days after the couple tried to renegotiate their business loans with a Utah bank. The loans had been sold to the bank after the FDIC took over their original bank, First National of Arizona, just one week before the store opened.

"I have hit the perfect storm," said Doug Anderson. "Our survival is based on the ability to be as resourceful as we possibly can in an economy that has flat-lined."

Even though the couple traveled to Utah to meet with bank officials, no new loans were offered. As a result, the Andersons had to invest nearly a million of their own money to launch the store, plus another $220,000 to keep it afloat in a bad economy.

After the Andersons returned home from Utah, Vicky Andersen had to take a break because of stress and high blood pressure. Her husband believes the stress caused her health problems.

"A legitimate profitable business can't do business because of the screw-ups of the banks," he said.

BuiHiltg-hodudsom

Bloch Put on Auction Block

All assets of Bloch Lumber, a 50year-old distributor based in Chicago, Il., were seized by its primary lender and set to be auctioned off Dec. 29.

The Chicago, Il.-based wholesaler operated 26 facilities in l7 states, including sales offices in Portland, Or.. and Denver. Co.

o Montreal Reckt Racks Systems

DOMESTIC SALES:

Jerry Long, Michael Parrella, Janet Pimentel, Pete Ulloa, George Parden, Vince Galloway, Steve Batick, Chris Hexburg, Matt Wright, Brad Applegate, Scott Crutchfield.

INTERNATIONAL SALES: Nestor Pimentel.

Dixie Tibbets has retired after 26 years in the industry, the last 13 with Swanson Group Sales. Glendale. Or.

Justin Norman has been promoted to v.p.-sales & marketing at Woodfold Mfg., Forest Grove, Or.

Tom Czlapinski, ex-TimberTech, is new to outside sales at Califbrnia Redwood Co., Arcata, Ca., covering So. Ca., Az., Ut., N.M., and Tx.. from his office in Temccula,

Ca. Chad Griffith. cx-Lumber Products. is now handling outside sales in Wa.. Or., Id., Mt.. Wy., Co.. ancl Ok.. fronr his basc in Spclkanc, Wa.

Bob Lackey. veneer sales. Idaho Vcnccr. Post Falls. Id.. added the title of salcs nrgr.-lumber products.

John Parr. ex-Certified Forest Products. has been promoted to president of McKillican American. Inc. He will be based in Orinda. Ca.

Old World Crafumanship In Today's Designs

Tru-Dry Timbers

Rick Palmiter. ex-Idaho Veneer, has .joincd Idaho Forest Group LLC, Cocur d'Alene. Id. Erol Deren has been named v.p.-sales & markcting. and Jim Scharnhorst is now v.p.-market devcloprnent. ftrcusing on export. ncw markcts. and sPccialty products.

Chris Graham has rejoincd McCoy's Builcling Strppll i.r\ \l()rc ttt!:t. in Hobbs. N.M.

John Steward. ex-Plum Creek. is new to the sales stal'l'at Silver City Lumbcr. Thrcc Forks. Mt.

Shawn Roehr has been promoted to prcsident at Arrow Lumber & Hardwarc. Eatonville, Wa. Jeff Wertenberger is now v.p./chief l'inancial officer; Lloyd GentrY. r p./direet()r-store operati()ns. Orting. Wa.; Steve Putney, v.p./ storc mgr., Eatonville; Greg Simpson. v.p./store mgr., Randle, Wa.. and Chris Peterson, v.p./ store mgr., Port Orchard, Wa. Cadian Hendricks will serve as v.p./store mgr. of a planned ti,000sq. ft. facility that is awaiting a building pern.rit.

All FGL Tru-Dry timbers are dried in "HeatWave USA's RFV' kilns. which use clean. renewable energy and have zero emissions.

tu-Dry timbers are dried completely and evenly throughout so you won't experience the sticky problems often encountered with beams that are not dried to the core.

Combine our selection of Douglas fir timbers along with our skilled milling staff and you've got one of the best resources in Southern California.

Tru-orq

HUFF LUMBER COMPAf{Y SANTA FE SPRINGS, CALIFORNIA

800-347-4833

Todd Perry is now tbcusing or.t lutrber and pancl sales in thc westcrn U.S. for Taiga Building Products. Burnaby. B.C. Cam White will becomc president and c.c.o. APril l, fbllowing thc retiremcnt of Jim Bradshaw. who joins thc bttard. Kevin Rradshau is nou cxce utire v.p.-supply managementl Trent Bal0g. cxecutivc \ .p.-()pcri.ttions. und Grant Sali. exee utive r.P.allied products & treated wood.

Marc Brinkmeyer, Idaho Forest Group. Cocur d'Alene, Id., was narned chairman of the ncw American Wood Council. Immediatc past chair is Ray Tennison, Sirnpson Investment, Tacoma, Wa.: lst vice chair Joe Patton, Westervelt: 2nd vice chair Brian Luoma, L-P: lumber rep Adrian l|locker, West Fraser; EWP rep Rob Taylor. Weyerhaeuser: panels rep Fritz Mason, G-P: other products reP Andrew Miller. Stimson Lumber, Portland. Or.. and Canadian Wood Council rep Diana Blenkhorn.

Larry Greene has bcclt named dircctor of salcs for Calibre Dottr Closers. Orrtntc. Cit.

Kevin Surace. Serious Materials. Sunnyvale. Ca.. was nerrned E,ntreprcncur o1'thc Ycar by Ittr:

Rich Returns is now investment mgr. at Mungus-Fungus Forest Products. Clinrax, Nv., report owners Hugh Mungus and Freddy Fungus.

Gertifiers Ul and ICC Unite

Underwriters Laboratories and ICC Evaluation Service have teamed up to streamline evaluations that ensure building products are compliant with appropriate codes and product safety standards.

The new dual evaluation and certification program will simplify the testing and evaluation, conduct testing to UL safety standards, show code compliance via an ICC-ES evaluation report, and get simultaneous postings of compliant products in UL's online certifications directory and code conelation database.

"This partnership brings two industry leaders together to create a onestop-shop for building materials testing and evaluation needs in the built environment," said Chris Hasbrook, an UL v.p. and general manager.

He added that the "dual evaluation and certification program will provide manufacturers faster turnaround times and speed to market, while giving their customers two more reasons to trust the quality, safety and efficiency of their products."

UL has also enhanced the usability of its product certification information. Its code correlation database connects product certifications directly with specific applicable model installation code sections to help code authorities and other industry professionals find ICC-ES code-compliant products.

"This is just one of the many benefits of working with a trusted partner in safety like UL," said Mark Johnson, president of ICC-ES. "We continue to look for new opportunities to expand this partnership to better serve our customers and members."

Two Coat Exterior Prime

0ur two-coat process starts with an atkyd seater to btock tannin migration, foltowed by a high-performance acrytic primer. The result: RESERVE quatity, inside and out.

Superior Wood

Made of quality, ctear, finger-jointed Western Red Cedar or Redwood, these products are natural.ty designed for exterior use-both species are ideat for endurinq extreme weather.

Surfacing + Sizes + Lengths

RESERVE oroducts come in a wide range of sizes, lengths and finishes. Whether the project catts for 5152E or S4S, we of fer tengths ranging f rom 16' to 20'. Pattern stock is atso available.

1"x4 - 1x12 s/ax4s/axl2 2x4 - 2x1.2

The Finest Stock, The Best Coating

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.

S I S TryOU. FOREST. PRODUCTS

www.siskiyouforestproducts,com 800.427.8253. 6275 Hwy 273 . Anderson, CA 96007