etitive ligence Eye on the end of the tunnel

By Carla Waldemar

A NYONE can sell 2x4s. and sell .Clthem cheaper. But. despite its name, that's not what Massachusettsbased National Lumber is about. Not anymore, anyway: That's not how you plant your flag on the pinnacle as the largest independent building material outfit in New England.

Says Manny Pina, hired in 1987 as v.p.-operations, who moved to the president's office in 2001, "I revitalized the lumber business. We're no longer a lumberyard, we're a building business. Nowadays, we sell everything. We've added product lines like I-joists, pre-manufactured stairs, trusses, LVL panels, custom cabinets, and millwork," and more, much of which is manufactured in National Lumber's own facilities, to cut down on middle-man mark-up and curtail errors. Plus, National installs what it sells, using a vetted crew of subs in a strategy aimed at paring back on added payroll bites like health care and 40 l/k contributions.

Those bold moves call for thinking outside the box. But then, that's what National has been good at since its inception in 1934 (not a stellar year to inaugurate a business, if you recall your history), when a Russian immigrant with little command of English but a tremendous business vocabulary launched what would grow into six retail stores, panel manufacturing, a millwork and truss operation, kitchen showrooms, and counting. (Many of those plants were purchased during the bleak, belt-tightening days of the late '80s, another tumultuous time when visionaries such as the folks at National could pick up good properties going fbr a song-plus a buck or two-with a keen eye focused on the inevitable light at the end of that gloomy tunnel. Holds true today.

In the meantime, starting in 2003 under Pina's watch, the first of the company's signature Kitchen View stand-alone showrooms openedplanned, he says, to capture "vertical growth in sales from everyone who buys lumber from us." Pina is able, of course, to leverage favorable prices from the volume buying these operations afford.

Yet, they're far from cookie cutter kitchen displays. Each is designed, as are the retail stores. to cater to the differing demographics of the New England communities they anchor. Thus, the New Bedford, Ma., showroom serves the inner city, while the New Hampshire audience is rural. "In

Mansfield, Ma., houses are 2,500 to 4,000 sq. fr., while in Newron, rhey range from 2,500 to 27,000," Pina explains.

In fact, the town of Newton merits two separate Kitchen View showrooms-one for the standard builder and another for the high-end, custom customer. The reason: National had been losing a part of the business because it wasn't able to get those high-end homeowners to look at kitchens in a lumberyard. "We needed a better atmosphere," he says.

So National renovated an historic stucco storefront, posting state-of-theart vignettes to line the perimeter of the 6,000 sq. ft. site, showcasing everything from French Country hand-glazing to the urban posh of stainless steel. As well as kitchens, the showroom serves as a panorama for custom moulding and other architectural millwork National can provide, from Corinthian columns to basic balusters.

Centerpiece of a Kitchen View showroom is a fully-equipped, working kitchen, marrying the look of Boston's gentrified Beacon Hill with the technology of the new millennium. The word was spread via radio ads, plus targeting the company's database ofdesigners and architects in the area.

"We're always looking for the right fit," Pina offers. Which means that, even in this deep recession, if another acquisition opportunity made sense, National would forge ahead. In fact, the company has recently expanded its sales force at a time when others are contracting. "Sales and estimating are the areas to strengthen, especially in this economy," he attests. "I believe you add to volume that way, but without taking on additional support staff. 'Sales cure all ills,"' is the maxim by which he operates.

That's not to say he knows the glass can be half-empty, too. "We're reducing our staff by attrition and adjusting hours. And when we hire, we hire experience, so they can hit the ground running." Becoming more technologically efficient throughout the operation also has shaved the cost of doing business. (An aside: Pina is the only one, in all the years I've had the pleasure of writing this column, who advised me via an electronic meeting-planner pop-up, "Your interview is scheduled to begin in six minutes.")

Two years ago, Pina saw yet another opportunity and acted on it, courting the underserved remodelers of the area. National Lumber established a Remodelers Pro Force, the first of its kind in the region, to address the unique needs of the smallto-medium-sized remodeler, "who doesn't feel loved. We'll do their take-offs, greet them and guide them around the store, then follow up." In other words, "Pay attention to them.

We're growing the business by serving them better, and that's paying off in loyalty. Certainly, in this economy, even remodeling has leveled off, but it will gain market share as people are able to get loans," he's confident.

Commercial turnkey packages represent another innovative marketing program offered to contractors. "We offer builders a fixed price for thejob, with a single bill each month, which means a guaranteed job with no surprises," Pina elaborates. Is it working? Big time. In 2008, National saw its commercial business rise to over 25Vo of overall sales.

What also drives market share, Pina is convinced, is "direct sales. That's what we believe in. Educate the customer in what we can do for him, and they'll keep coming back"and back to the same people.

As the company founder's grandson, Steve Kaitz, once put it, "They appreciate the consistency of our personnel, seeing the same people there every day for l0 or 20 years. When people walk in and see the same faces, they develop relationships. Plus, they can count on that built-in knowledge, both of products and of our own systems. Clients know we speak their language and enjoy working on their projects."

That's key to survival in what Pina paints as "a battle" among keen competitors in these parts. "It used to be, you'd concentrate on two legs of the [proverbial] stool to excel. Now," he sighs, "it's all three.

"Eventually, I think, the competition will thin out, and we'll supply even better service to our customers. There are no secrets to it, just the oldschool clich6s. But we walk the talk. We'll come out ahead."

Rrutrtrs

Close Lumber is shuttering its Colusa, Ca., yard, reducing the chain to six Close and Corning Lumber locations

Wilbur Building Supply, Wilbur, Wa., has been acquired by Tom Mills, Mills Construction, and is once again stocking lumber

ProBuild closed its pro yard in Hamilton, Mt., March 12, with three of its six employees transferring to Missoula, Mt. ...

F oxw o rth- Galbr ait h Lumb er has closed its Nogales, Az., lumberyard

Friedman's Home Improvement, Santa Rosa, Ca., is seeking approval to build an 80,000-sq. ft. store and lumberyard in Petaluma, Ca., the city the company was founded in, but Le&in 1976 ...

Austin's True Value Home Center, Carpinteria, C&., closed March 29

Tweedy & Popp Ace Hardware began relocating merchandise to a new facility across the street from its Wallingford, Wa., store, but is still working to secure the proper permits to begin retail sales at the newfacility...

Ace Hardware anticipates a June 19 grand opening for its new 33,000-sq. ft. store in Ferndale, Wa.; Gordon Merritt, owner; Ron Eheman, partner/asst. mgr.

San Andres Hardware, Santa Barbara, Ca., may close this summer due to big-box competition, while owner Mohammad Hormozfar seeks a new owner to take over his lease ...

Island Lumber & Hardware, Vashon, Wa., has begun stocking automotive goods following the closure of a neighborhood auto parts stofe

Lowe's Cos. is fighting local opposition to its plan to build a 155,000-sq. ft. store in Santa Rosa, Ca., and hopes to break ground in 2010 on a 94,000-sq. ft. store on 11 acres in Klamath Falls. Or..

Dolan's Lumber, Sacramento, Ca., officially closed in December, but continues selling off remaining inventory to contractors ..

Malibu Lumber Co., Malibu, Ca., closed since 2005, has been replaced by The Malibu Lumber Yard, a chic, eco-friendly retail/ dining center that has nothing to do with lumber...

WuorrsHrrs/tmutrqurns

Stockton Whole sale Lumber Co., Stockton, Ca., closed March 3 I after 33 years

Golden State Reload, Fontana, Ca., has been opened on-site at Peterman Lumber ...

FJI. Stoltze Land & Lumber Co. restarted its Columbia Falls, Mt., sawmill March 23 after a sevenweek shutdown to optimize its log inventory...

Boise Cascade eliminated the 30-man second shift April 6 at its stud mill in Elgin, Or. ...

Plum Creek Timber Co. rcsta(red its sawmill in Columbia Falls, Mt., sawmill March 16 after two months, citing a modest uptick in demand for pine boards

Swanson Group, Glendale, Or., laid off 43 workers from its Glendale plywood mill, a 45-man shift at its Roseburg, Or., stud mill, and 24 otherc in operations companywide, effective April 1

Correct Building Products is discontinuing its "first generation" CorrectDeck rail, dock and lumber products, to simplify ordering and

SKU management for distributors and dealers and focus on its newer CorrectDeck CX lines ...

Masonite International and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection

Serious Materials, Sunnyvale, Ca., has acquired Republic Windows & Doors, Chicago, Il., and reopened the former Kensington Windows plant in Vandergrift, Pa., March 16, five months after its closure and two months after its purchase from Jancor

LifeTime Composites, San Diego, Ca., has had the recycled content of its LifeTimber Lumber decking, dock and fencing products certified by Scientific Certiftcation Systems

U niversal Fastener Outsourcing's Ballistic NailScrews have been approved by IAPMO ES under AC120 as a substitute for 8d common nails in subfloors and shear walls

Tiger Deck, Portland, Or., has earned Forest Stewardship Council chain-of-custody certification for its imported hardwood decking ...

Deltalok USA, LLC, Ferndale, Wa., has been formed by Asiabased Deltalok to manufacture and market its slope stabilization products in the U.S.; Randy Nulle, c.e.o....

Lumber Products, Tualatin, Or., is now distributing ?ex composite products in ldaho, Washington and Oregon

New websites: Van ArsdaleHarris Lumber Co., Brisbane, Ca., www.vanarsdalehanis.com

Anniversaries: Chino Lumber, Chino, Ca., 50th Seljax,l5th

Housing starts in Feb. jumped 22.2Vo to an annual rate of 583,000, though the figure is 47 .3Vo below Feb. 2ffi8 ... singlefamilv starts climbed l.l%o to a 357,0b0 annual pace ... permits rose3Vo to a 547.000 rate.