Merchant Magazine - May 2012

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The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-,|872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post oftices. lt is an independently{wned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states.

Copyright@2012 by Cutler Publishing, lnc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. lt reseryes the right to accept ot reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

Patience is a virtlr€...

fllHer wAS wHAr My pARENTS taught me from a very early age. But I feel-and I perhaps chalk it up to the natural aging process-life at times seems to be moving too fast. Consequently, patience and tolerance levels are declining just as quickly. I cannot believe how much screaming and shouting goes on around me-especially on television and on line. In a world of Twitter (and it is time that went away, IMHO) this got-to-know-now, got-to-do-now world we live in makes me worry about the future.

Times have changed, and not all for the good. In the good old days, there were the weekends when that project around the home could take three months. Now it has to be finished the same weekend! At work, the project that would have taken weeks now has to be done by tomorrow. Dinner that used to be slaved over for hours now is out of a bag, oven to table, in 20 minutes. Kids eat dinner, play video games, and do their homework all at the same time, while rushing to the next outof-school activity. Everything has to be done now and instantaneously!

Much of the troubles our economy has gone through these past years can be blamed on the need for instant gratification, that regardless of whether it could be afforded or not, there was the need to have it now, rather than save for it.

We are living in a time that gets faster by the day, hour and minute. It's a world where a newsperson gets fired if another network gets on air with a breaking story a few minutes earlier. Sometimes even seconds are too long. I must admit my wife is always saying, "Hold on! I'll get to it in a few seconds when I finish the last thing you barked your orders for." Yes, it seems I have succumbed, too.

In the process, we have lost patience and tolerance. Patience is the ability to tolerate delay, and it seems that most of us are guilty of a lack of it. Our shortage of patience suggests our time and needs are more important than anyone else's. I'd like to think that I am better at it than in the past when someone jumped the line at the supermarket or cinema line. I let it go now, but maybe because people seem a lot meaner than they used to and you never know what they will pull from their pocket. When I get cut off on the highway, I just take a breath (or two, or three).

Maybe it is maturity, but today I am better at gauging how important something really is. So many times, I see people lose their tempers when, once out of that moment, minimal analysis would show that it really did not matter. Things that would have gotten my cheeks boiling not so long ago now do not. I find my stomach is no longer in the knots it used to be in.

Instead, look around you and marvel at our universe. Understand what is really important and learn to accept other's failings. Once you have serious illnesses around you, for instance, you renumber your priorities.

Lastly, looking at my own field, I am astounded at the decline of real journalism. It should alarm anyone of any intelligence. It's all brought about by the needto-know crowd. On television. news has been dumbed down to the lowest common denominator. Real thought and insight have been thrown out of the window for the sake of expediency. Editorial standards evaporate when "news" has to be published in seconds. And, yes, the biggest danger is that real editorial costs money and cannot be given away free. Because of that, our journalism has evolved into covering what some celebrity was wearing, instead of creating intelligent debates on the issues that face us. Serious journalism is in real decline. and we all should unreservedly lament this loss. How can you have an opinion when you have had no serious news to base your opinion on? Are we going to base our worldly opinions on the Huffington Post?

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Otips to sell more stains

C1 Er-r-rNc HrcH-END stains can be challenging with current \)economic conditions, but recession or no recession, there is something to be said for the value of a quality wood coating.

You need less product, there's less labour involved, and the end result looks and performs better. The key is educating staff so they have the tools and knowledge to help customers make the right choice for their homes. To help with that, wood stain manufacturer Sansin questioned three of its most successful dealers in Nonh America. Their strategies can boost your sales, which will not only help your customers, but also help your bottom line.

L. Ur" the stain yourself. This gives you first-hand experience when talking to customers and telling them

why they should use a premier brand.

2. Knorn the product inside & out. When customers are going to spend big money on stain or finish, they need a dealer who knows more about the product than just the literature. That's why Doug Janzen of Janzen's Paint & Decorating, Brandon, Mb., makes sure his sales reps know wood stains like the backs of their hands.

3. Set out samples. Every stain and finish product claims to last a certain amount of time. But when you see how well they work in action, it really makes an impression.

4.t"t them try it. Hands-on experience can often make or break a sale. So why not let your customers try the product in the store? That's what Janzen does. He has samples of the stains that he lets customers brush onto wood right in the store, so they can get a sense of how it works and how it looks. "This gives people a first-hand sense of the rich, warm tone of the finish," he says.

5. Co to your best contractors. Many customers won't be working first-hand with the stains themselves, but their contractors will. That's why Bjorn Hanson, Burnell's Decor, Rice Lake, Wi., let his best contractors try it out first. "They were so impressed with the product that I now make most of my sales to my regular contractors," he says.

6. Foc,rs on custom colors. Some higher-end stains and finishes allow you to custom-tint the product. "Not only can we do the 80 colors in Sansin's catalog, but the custom-tinting process allows us to make any color our customers want," says James Housser, owner of Housser's Paint & Wallpaper, Orillia, Ont. "That's a major selling point."

7 go green. Another key selling point, says Housser, can be a water-borne formula that makes the staiin a more environmentally friendly choice. Or, perhaps it dries faster, has less odor, or is easier to apply.

8. Off"" tips & tricks. When you have strong knowledge of the product, you can provide pointers about using it that will make customers more willing to try it. According to Hanson, "I try to offer my customers as much information as possible so that they'll have success with the product."

SAMPLE-PACKED merchandiser from Sansin makes it easv for customers to select oremium wood stains.

By David Elenbaum

What to stock to sell more decking and railing

tTt"t INCREASTNGLy DtvERSE product I- off,erings in decking and railing are a good thing for the typical LBM dealer-that is, unless he wants to stock something. "We don't know what color to stock and as soon as we make a choice, it will be the wrong color" is a very common statement in the industry.

It used to be that you had treated, some gray composite, and if you were savvy, a vinyl rail that came in any color a prospect wanted as long as it was white. The only salesmanship that was needed was to point out the maintenance differences and you were done.

Today, the decking selection area

in a lumberyard is typically a shelf with so many choices that a prospect may not know where to start. The sales staff at the store very likely does not have enough time to learn about all of the brands and lines that they have access to. Finally, what happens if the prospect decides on a color that has been discontinued or the distributor stopped carrying?

The crux of the matter is that if you don't stock anything. you may not be a player. The contractors rely on dealers to stock products and normally will try to sell what they can get, today. Homeowners may wait for special delivery, but the option of an in-stock product will always weigh

heavily on their buying decision. It's no one's fault, we are just instant gratification people. We like service now, our way, right away, and there is no need to plan ahead in today's world.

Principia Partners's report from 20 I I shows that the pro contractor buying from the pro dealer is the top channel for decking and railing by a vast margin. Freedonia reports that the entire category is due to increase over the next few years by a significant measure. From these sources of information, dealers may want to revive their focus on the category, but how?

Here are some ideas on how dealers can be involved in this saturated market and, perhaps, make a few bucks in the process:

In addition to treated, stock an alternative decking in three lengths and a fascia board. Stock the fasteners and clips, and consider stocking a complementary railing. It's good to have everything in your yard that is needed for the typical 16x20 deck.

Choosing the color is crucial, but most manufacturing reps can help you decide which one is best for your location and market.

If the brand you go with has a hidden fastening system, go with that. Get the tools to install the products and sell them or rent them out. Stock the brackets and bolts needed for decks to meet code.

Once you decide on the color and brand, run a special on it and make sure it is priced more competitively than your special orders. It's okay to have all of the other samples and have them there if someone asks for them, but you must clearly show your choice as the frontrunner and have a really good sales pitch as to why you made that choice. Keep the materials

at Stock Building Supply, Johnston County, N.C., shows off his wares.

onsite in your inventory, and make sure your yard guys ship it perfect and clean with an emphasis on clean.

Leverage your suppliers and sales staff. Manufacturers reps and distribution reps are always huppy to make calls to contractors to help you grow your business.

Choose a member or two of your sales staff who will be responsible for decking and railing sales. By not diluting it, you will create a specialist who closes more deals then if you spread the responsibility out amongst the entire store. Make that person the doctor, the person everyone trusts because he knows so much about it that they will let him do surgery.

Homeowners and contractors trust validated knowledge in a decking salesperson-a person who affirms factual information found online or in publications read by the public. The salesperson should possess the ability to capture the prospect, determine the objections and needs the prospect values, and apply those to the product you want to sell.

Salesmanship requires more work but is also more profitable.

. Market your store as a resource. People go on the Intemet to research what they want to buy, but in today's world they look for validation from the salesperson they deal with, whether it is on the phone or in person. Decking rarely sells in an electronic transaction. Market online aggressively with a website, search engines, and social media. Link to your supplier websites and ask for help from them with content to put on yours.

Advertise that you stock decking materials and that you can provide product knowledge. Participate in the industry associations, such as NADRA, and host events at your store.

Learn the codes and interact with the codes officials that inspect your customer's projects.

By stocking products and proving to your market that you are committed to the decking industry and are a stocking resource for the materials, you will begin to gain marketshare and see growth in decking and railing.

- David Elenbaum is owner of a deck construction firm in South Carolina and has worked in the contracting, manufacturing and distribution channels during his 12 years in the deck and rail industry. Reach him at davidelenbaum@ gmail.com. &rlldingrhoduds"om

Lyle Lee hos been building custom homes for over 20 yeors. Here is whot he hos to soy obout Roseburg's Engineered Wood Products.

"When building o quolity home, il's importont for oll the froming moferio/s to motch. ln other words come logelher os specified in fhe design plons. lf the froming is off by even o l/a of on inch, it con cosf me lhousonds of dollors in time ond moferiols.

I find Roseburg's RFPI@-Joist ond Rigidlom@ LVL to be very consislenf in width ond depth. When I use Roseburg's RFPI@-Joisf, my floors ore more level, stiffer and truer, moking my job much easier.

fhis home is 6,000 sguore feelso I used lJoisf ond LVI from severol different unils ond the monufocluring consislency wos exoctly fhe some. lf you wont to moximize your profit, I would recommend using Roseburg's Engineered Wood Products".

Lyle Lee

Lee Building Compony

Reol Wood Siding

Softwood Plywood I Lumber RFPI", RigidLom@, RigidRim@ ond Quolity Engineered Wood Products for iodoy's builderE ore regislered lrodemorks of Roseburg Forest Producis, Roseburg, Oregon

By Sean Seymour, Simpson Strong-Tie

Get more out of your deck design software

Parr recently partnered with two of its loyal contractors on two deck projects. "They knew we had the software, and being able to see a picture of the finished product was huge. It also was a big selling point," Roe said.

AvEn rHE YEARS. LBM dealers

\-/have invested in software to help their pro desks design and sell decks. All too many of these dealers, however, have found their deck design software is underutilized by associates.

That said, you might be surprised to leam that a number of lumberyards and pro dealers are finding new ways to grow their business organically by partnering with their existing contractor customers and capturing more share of wallet from their d-i-y customer base. Three lumberyards provide examples of how using deck software is generating growth.

Parr Lumber

Headquartered in Hillsboro, Or., Parr Lumber is a family-owned business that opened its first lumberyard in

1930. Today, there are 19 stores in Oregon and Washington, primarily in the Bend-Tacoma-Seattle area.

For Parr, deck building is seasonal. "Currently deck building is about 507o of our business in the spring," said Traci Roe, counter sales at Parr Lumber. "It's about 50/50 contractors vs. homeowners."

The chain recently invested in deck software, but it's currently underutilized. "I'm the only one trained on it, but ideally, I would like to have a center where anyone can take their customer and build their deck," said Roe. "The software is easy to play with and pretty forgiving. so having everyone trained shouldn't be too difficult. I'm not the most computer savvy, so it's nice that I can go back and change anything."

Although Parr would like to expand the use of its software, they have noticed that it has increased the efficiency of their deck design process and their ability to upsell. "With the click of a button, I can change materials and give customers more options," said Roe. "I had three d-i-y customers and all three chose us for their deck. They knew what they wanted, and having that visual piece added a lot. The ability to show materials other than wood made it easier for us to sell them on it. Oregonians tend to want real wood and organic, natural materials, but when we tell them about the upkeep and how rain affects mold and overgrowth, they're more willing to look at other options. We moved to composite, and now we're moving more toward PVC."

Parr believes that once they get a deck station set up in their store in Hillsboro, they'll have everyone trained on the software. Roe added. "I want to give it to our outside salespeople for use with their customers too. With full integration into our business, it's a phenomenal tool for us. We can crank out a deck design in 15 minutes. I love it."

PMC Building Materials

About 15 miles north of Atlanta, Ga., PMC Building Materials opened its doors in September 2008. As a fullservice lumberyard focused mainly on remodelers, they also serve deck builders, contractors and homeowners/ d-i-yers. PMC often uses focus groups

OFFERING DECK design services, such as with Simpson Skong-Tie's DeckTools software, helps boost dealers' decking sales.

to gain valuable feedback from their remodeler customers. With their input, PMC decided to build a deck center two years ago. Today, it's the biggest deck display in the Southeast. About lOVo to l57o of their business is now deck building, and 9OVo of that comes from contractors and remodelers.

PMC's goal is to become a onestop shop for all of their customers' decking needs. "We needed software that could handle multiple (product) libraries as well as build a library quickly, because we have more than l7 deck brands and 2l railing systems," explained Thomas Matula, IT/web/marketing manager for PMC. "The software had to be easy to understand and work with. We're still gearing up and have one outside sales guy working specifically on the software, and one front desk person designated to teach our front counter staff."

PMC's plan is to get the design stage out of the hands of their customers in order to free up their time so they can focus more on leads and generating more income for their business. "We're just starting with the software, but the belief is that by utilizing it in the real-world stage, we'll ultimately be able to improve it as we grow across multiple markets," Matula said.

To date, the software has helped provide more professional-looking quotes and more opportunities to upsell projects. "As we continue to brand ourselves as the one-stop shop for all decking needs, the software is truly the icing on the cake. We have the knowledge to help a builder make a sale, which means they keep coming back," said Matula.

J&W Lumber

With over 50 years in the business, J&W Lumber has 45 employees across six stores-five in San Diego County and one in Riverside County, Ca. Their main focus is decking and patio covers.

Decking is 4O7o of J&W's total business, with707o coming from contractors and 3OVo from d-i-yers. Providing deck design has been a part of J&W's business for much of its history. "We used to spend hours with a pencil and a ruler drawing a design," explained J&W's Scott Walter. "But we didn't give customers a visual of what their deck could look like. Today, we use software that provides customers with a 3D digital presentation of their deck."

The software also reduces design time. "It used to take us a day to design a deck. Now it takes a fraction of the time, so we can have it done while the customer is in the store," added Walter.

For contractors, J&W can provide plans and estimates for their customers. "Even when they come in with a difficult design drawn on a napkin, we'll review it on the software to figure out if it can be done. As we've become more proficient with the software, we're using its railing design and customized features a lot more, and now are beginning to design patio covers," said Walter.

The software also has made J&W's deck design process more efficient. "It's more visual and we can provide quicker quotes to our contractor customers, who can then provide quicker turnarounds to their customers," he said.

It has made an impact with homeowners as well, influencing upgrades. According to Walter, "D-i-yers are absolutely amazed. They see the finished product within a few minutes, and we can change options on the fly. Often, they have three to four ideas in mind, and we can switch those around and show them in color. Even thoueh

they think something might be more expensive, once they see it, they like it. And we can show them that it might not affect price as much as they thought so they tend to buy upgrades."

J&W currently has 20 employees trained on the software. Walter added, "We want to continue to improve our skills and use the advanced features, so we can do things like tweak designs even more, design better railings, and price out patio covers. It really helps you expand beyond the deck."

While deck design software is not new, the technology continues to evolve and improve. The latest software on the market can produce 3D photo-quality deck designs with sophisticated railings and customizable product libraries as well as estimates, take-offs and plans. As showcased by these dealers, deck software is helping expand business with contractors and d-i-yers and contributing to the bottom line-not only with how fast it can generate a deck design, but with the visual presentation in showing upgrades that ultimately lead to increased sales.

- Sean Seymour is national sales manager for DeckTools with Simpson StrongTie, Pleasanton, Ca. Reach him at sseymour@ strongtie .com.

DESIGNS for decking projects also cover railings (upper) and patio covers (/ower).

By Bob Hafner, Tiger Deck

How green is tropical hardwood decking?

and treated softwoods have a significantly lower environmental impact than composite or plastic decking productsx. Given this information, we can infer a number of conclusions about hardwoods by focusing on four environmental factors: responsible sourcing, durability and lifespan, environmental impact, and end-of-life disposal.

Responsitrle Sourcing

Hardwood decking is made of tropical tree species, harvested from tropical forest areas around the world. Contrary to popular belief, however, logging is not the root cause of tropical deforestation. The conversion of tropical forestland to ranches and farmland is far more destructive, a trend that's exacerbated by energy companies seeking to produce more agro-fuel crops. In fact, most countries in the tropics have initiated strict logging regulations that are growing in scope and enforcement.

f, s rN Mosr PARrs o[ the building la.industry. the demand for green decking continues to surge. Savvy marketers are taking advantage, promoting the green qualities of their manmade or natural wood materials. But the greenest option might be the one consumers know the least about and comprises less than 57o of the decking market.

So just how green are tropical hardwoods?

Most people think of green products as having minimal long-term impact on the environment, from raw

material sourcing to manufacturing, selling, and end-of-life disposal. The challenge for hardwood advocates is that most cradle-to-grave life cycle studies focus on other decking materials, specifically natural softwoods, treated softwoods, and wood-plastic composites. We can still learn from these studies. however. as hardwoods share many of the same life cycle traits as softwoods.

Let's start with the studies' basic findings: Solid wood products with natural resistance to insects, rot, and decay (such as redwood and cedar)

When properly regulated, sustainable logging can actually slow or reverse deforestation by adding value to forestland and providing a viable alternative to farming and ranching. Plus, tropical countries are eligible for carbon sequestration projects, providing incentives to plant new forests, replace old ones, or grow plantation forests consisting of fast-growing decking-appropriate species. Replenishing depleted forests or planting new

* Studies include Life Cycle Assessment of ACQ Lumber vs. WPC b7 Christopher A. Bolin & Stephen Smith, Journal of Cleaner Production, June 30,2010, and WPC vs. Wood Decking by Dr. Jim Bowyer, Dovetail Partnerships, July 28, 20 1 0.

INDEPENDENT STUDIES show hardwood decking stacks up well environmentally against softwoods and composites. Photo by Tiger Deck

forests has the potential to provide income to developing countries, offset companies' fossil fuel emissions, boost the supply ofeco-friendly wood products, and increase tropical forest area (this has already started in some countries).

Durability & Lifespan

Solid wood has a long track record of performance. Softwood decks (not old growth) may last l0 to 15 years on average, depending on care.

By comparison, tropical hardwood decking can last two to three times as long as softwood decking. For example, the Coney Island boardwalk was renovated with ip6 (he first proven hardwood decking species, along with Tigerwood and cumaru) in the 1960s and sections of the Atlantic City boardwalk in New Jersey were replaced with ip6 in 1989. In both of these heavy commercial applications, the hardwood decking is still performing well.

All solid wood decking products require UV protection for color preservation, but as you move from treated to cedar/redwood to hardwoods, the required maintenance declines. Because hardwoods are much denser, they're also far more resistant to scratching, denting, and other surface degradation.

Environmental Impact

Wood-plastic composites have a significantly higher impact than solid woods in every environmental measure, including embodied energy, global warming acidification, aquatic eutrophication, ozone depletion, smog formation, and human respiratory effects. Although the referenced studies focus only on North American softwoods, the practices used in tropical forestry are extremely similar up to the point of shipping from source to market.

Because decks made of tropical hardwoods can last up to three times longer than softwood decks (and equal to or more than composites), it's reasonable to assume this longer lifespan offsets additional embodied energy used during transportation in overall environmental impact. Even if the wood composites last three times as long as softwood-no one really knows their life expectancy-the studies still believe that solid wood products will have a smaller environmental impact.

Afterlife

What happens when the product wears out? Natural solid wood products are recyclable and biodegradable, eventually reverting to soil over time. Hardwoods generally take longer to biodegrade than softwoods, but the slow degradation is offset by hardwoods' longevity.

Wood-plastic composites are not recyclable and end up in a landfill. Some manufacturers claim to make plastic decking from l00vo recycled materials, but the plastic can't be recycled indefinitely; eventually it ends up in a landfill as well and will not biodegrade in any reasonable time frame.

Tropical hardwood decking offers a number of environmental advantages over other materials. It lasts longer, requires less energy from cradle to grave, is available through selective and sustainable logging practices, and is biodegradable. Those looking for a green decking option should consider tropical hardwoods as a viable option.

- Bob Hafner is president of Tiger Deck, Wilsonville, Or. Reach him at (503) 780-2876 or bob@tiserdeck.com.

Post wraps make new columns in a snap

The wraps are available in a full range of sizes to cover posts measuring 4"x4" to 8"x8", up to l0' tall. Kits with complementary base moulding and post caps in both 5" and 7" sizes are also available.

Kleer also offers a wide variety of product solutions to help contractors create custom columns. Trimboard with TruEdge fully sealed edges and a wide variety of extruded moulding profiles can be used to create the exact look their customers desire. The company also offers an assortment of color-matched adhesives. cement, sealant and fasteners for a complete solution and the best results.

f lroerrNc ExTERIoR wood columns lL,/ with cellular PVC post wraps and trimboard is a cost- and time-saving alternative to repainting or total replacement-which makes these products attractive to cost-conscious homeowners.

Over time, wood posts and columns on porches and patios can weather and require repainting-while still being structurally sound. Or, perhaps a homeowner just wants to add more curb appeal. On new projects, PVC wraps can be added at the end-reducing the chance of accidental damage.

KleerSnap post wraps from Kleer Lumber, Westfield, Ma., look and work like natural wood but are virtual-

ly impervious to moisture and insects. They provide an easy, cost-effective way to improve the appearance and durability of exterior posts. Although the product doesn't require painting, it can be painted to match existing exterior details and is guaranteed to never rot, warp or delaminate.

"Exterior posts represent one of the more visual elements of an outdoor structure," says Jack Delaney, senior vice president of sales and marketing at Kleer Lumber. "KleerSnap post wrap is a simple and cost-effective way to enhance the aesthetic appeal of the posts while lowering the amount of maintenance required to preserve their beauty."

Two-piece column wraps from

UPDATING a structural wood post is easy with column wraps, such as this one from Fypon.

CELLULAR PVC trimboards manufactured by MEK Building Products were used to create custom columns for a covered patio.

Fypon, Maumce, Oh., are available in l l styles. to quickly transl-ornt an ordinlrr') strLr( tural post inlo sonrething distinctive. Clhoices incluclc tapered and non-taperecl column styles. plus a variety of cap and basc styles.

An unirs:enthlcd eolumn u rrrp irr lr plainer. box style is also available. in widths liorn 6" to 12" and a variety o1' standard heights that can be trirnmed on the jobsite. Each kit includes all needed components. includin-g adhesive. scrcws. ancl cleats necdcd for installation

PVC products manLll'acturcd by AZEK Building Products. Scrarrton, Prr rtllow buildcrs to srt erci.rli\e whcn wrappir.rg colurrns tirr porchcs. pergolas. and outdoor roolns.

"Easy workability allows the contractor to be creativc. while pro."idin-u low-maintenance," says Michacl Gori, director ot' product mana-gement nI AZEK. "For widcr coluntns on porches and entryways, contractors typically opt fbr AZEK Trim either in board profiles or cut l'rom AZE,K Sheet."

Steve Gray. who owlts and operations a rcnovation firnt in Inclianapolis, In.. uses AZE,K trim fbr bcarns and large columns. "Wc intertr,'",ine hall- of the end grain so it's interlockcd and won't comc apart." he says. "We f ind a continuous neecl fbr this t1pe ol' lou-lrrlrintcnirncc lrim. whicl.r needs no upkccp."

It's elegant. It's affordable. And it's energy smart, It's also an easy-install post cap that transforms into a mood light with the flip of a switch. All around, it's a great addition to Terratec's solar post cap line.The Zapper comes with a solar rechargeable battery, two blue LED bug bulbs and one white LED mood bulb. For a brochure featuring our full line of post caps, including our new solar stair and fence lights, visit us at mcfarlandcascade.comlpostcap.htm.

KLEERSNAP post wraps by Kleer Lumber make short work of column upgrades on a front porch/entry.

manufactured by 3l McForlond Coscade'

Going green cultivates rosy future

Clo, rsts BUILDER walks into a bar, L)meets a man... and the punch line is, they decide to open a home center-a sustainably focused one, no less. But this is no joke-especially the fact that they pulled it off in this difficult economy.

TreeHouse opened late last year in Austin, Tx. Now, usually I wait well beyond a few months before portraying a success story. But success it certainly is-business has multiplied five-fold in that short span. And, more to the point, the project had been on the drawing board ever since that meeting back in 2006.

That's when Jason Ballard. the builder from Boulder, Co., who's now v.p. of sustainability (a biologist by training and environmentalist by passion) met up with an old college chum-groomsmen for each other and both originally from Texas-to collab-

orate in launching a green operation. They did their market research, then came up with a business plan and seed funding. While the two were visiting D.C. on business, Jason recalled another Texas buddy now working there and connected once again. When asked to sign on, his answer was "Absolutely!" He left his Wall Street job to become v.p. of marketing.

They next approached a contact with a legal background, working for a high-priced San Francisco firm, who was looking for more satisfying employment. "He came with a fantastic reputation and dove in head-first," says Jason. "That's the way we grew, through friendships - people excited about the possibility, not just a business motive."

Why Austin? More market research revealed that it was the state's birthplace of-green building. Plus, the boys

OUT FRONT visitors to Treehouse are greeted by a massive rainwater collection system

from Boulder, D.C., and San Francisco were more than eager to return to good ol' Texas turf. So, says Jason, "The decision made itself."

Okay, how about the site within the city? As you can guess by now, that, too, was not left to chance. "It was not,'If you build it...,"'Jason avers. "'Location. location. location' is not an adage for no reason. We looked for a part of the community that offered a demographic of thoughtful, educated people. We also looked for a major thoroughfare with high traffic. And a place with good neighbors, like Central Market, where we ended up taking over a former Borders bookstore site and remodeling it to LEED standards. Then, on October 22,we opened."

How did you spread the word?

"Man! We're still working on that! But mostly, through guerilla marketing: as guest speakers, at conferences, at the farmers' market. We've used print mailers, groupons [Web couponsl, radio, even billboards" to reach a customer base that caters equally to pros and weekend warriors.

"We're geared to serve both; The layout is d-i-y-friendly. But I had been a builder, so I also knew their needs as a pro. We offer delivery and installation, calling on our list of approved subs, plus a dedicated professional team" that includes everyone from certified interior designers to a solar engineer and a staff member with a master's degree in architecture, among TreeHouse's close to 30 employees.

Jason adds, "We hired folks with a high level of education. not necessarily in this field, then trained them in green building-the salesmanship, the products-with one of the most thorough front-end programs I know of."

And it's paid off: The feedback online, via Yelp and Facebook, has been oositive. with raves like

"extremely helpful, knowledgeable staff." Plus, that kind of word-of-mouth marketing not only is the most effective kind, it's also free.

Contractors, however, notoriously drag their heels when confronted with something new and different, like this emphasis on building green. Jason finds he's attracting two kinds of pros: those who are committed to green construction, and those pushed in that direction by their own, maybe more savvy, clients.

For one and all, TreeHouse provides lots of educationnot in a traditional showroom, but in a format Jason calls a hybrid, far from the endless aisles of products a la Depot. In each department there's an Education Pod, where customers can interactively learn about choices in, say, countertops or flooring and keep up with new technical innovations. "But we also give the drawbacks of any particular product, so customers can make their own informed decisions," Jason says, adding, "Kids love to use it, too."

The store also features an Idea Center, another key source of information. Here, classes are held for pros-in everything from financing to courses supplying AIA and Green Building Board professional development-and two

three or four years. Spend lOVo more on something that lasts 20 to 30 years," he'll counsel.

Plus, "We do a good job of qualifying our customers," he notes. (That's just a fancy marketing term for finding their sweet spot.) A pregnant woman is concerned about her family's health. An environmental fanatic is already convinced it's the way to go. And both of them are willing to pay a premium for their choices. On the other hand, the average homeowner migh come in because his energy bill is killing him. "We'll help him save money, and live healthier as a by-product. He's moving in the green direction, whether that's his intention or not."

Best-selling single item? Windows, without a doubt. But the best-selling category is floorcoverings. "We offer amazing prices, plus full installation. We have the best flooring selection in all Austin," he can brag, adding, "Take off the blindfold... and it's green!"

TreeHouse is fast becoming known as the go-to place for anything solar, from a little-bitty product like a solar charger for your iPhone to a garden fountain, a generator, or even a whole-house system.

By the way, even the coffee is on the green list, bearing fair-trade credentials. It's there for architects and builders sitting down with clients to go over specs and blueprints and for contractors, who stop in for an early-morning jolt of java before hitting the jobsite.

Ask TreeHouse if it faces any local competition and the answer is, not really. There's a little mom-and-pop greenfriendly outfit selling everything from dinnerware to baby clothes, and another showroom taking orders, where folks cannot walk off the floor with their purchase. "We're all in thig together," in Jason's view.

And how often, we just had to ask, were Jason and his team snickered at as beyond stupid for opening in this sluggish downward turn? Yeah, he laughs, they were. "But the part of the building industry that's growing is the sustainable slice of the pie," he defends their choice. "A McGraw Hill study indicates that by 2016, green building will be five times bigger."

And today, folks are remodeling to save energy costs. "We educate them about the available rebates, too-local, state, and federal. We'll print them out, help them fill in the form, even pop them in the mail. For instance, you can get l5%o off a composter, or reduce your solar system bill by $10,000. And the staff are all very, very happy to work here. They believe in what they're doing.'

or three per week for the home consumer-on gardening, kids' health, home cleaning, or energy-saving solutions.

Products carried will always be a moving target. Jason, in charge of product stewardship, notes that his choices are based on four criteria: health, sustainability, performance, and core responsibility. "Curating the products is like curating art," he says. "I've been at it for five years, and it's always evolving. I'm still adding 50 products a month. We strictly limit them to products we ourselves would use in our homes."

And what about price? You dealers out there are well aware of the fable that green costs more. "And that's just what it is: a fable, exactly!" Jason contends, and backs up his belief with a price-matching policy. "But we also teach customers the relative value of things. For instance, a linoleum floor is cheap, but you'll need to replace it in

And the feedback's terrific. "Everybody loves the store. Eventually, as a business we'll be profitable, but we're not here for all the money we'll make. We're here as a vote for sustainability. And sales are up, so people also are voting with their wallets. Putting your money where your mouth is, is the most powerful tool-and we're not yet done with putting the message out.

"We've made a unique commitment to what matters-first to ideals, and then to making money. We're not just another aesthetic," Jason declares. "We've a different soul." And that's the kind of soul food folks clearly are hungry for.

Carla Waldemar

IN-STORE IDEA CENTER is a ready source of green product info and site of frequent seminars.

By James Olsen

Double your business in 12 months

f'\ven rHE LASr 20 years. 1007o of \-fthe groups I have worked with have grown their year-over-year sales.

What does it take to double business in 12 months? The sales groups and individuals who grow the fastest:

Commit to Change.

Change can be difficult, especially iT.

This goes for organizations as well as individual sellers. Many organizations have leadership logjams based on seniority, for example. Changing long-term leadership or lack of leadership can hurt. Magic words don't grow sales; we must have systemic change. If we plan on selling the same way and just tweaking a couple things, we will not double our business.

Commit to Prospecting.

If we are waiting for our current account base to get busier, we are looking at 5Vo max growth! It just won't happen. If we want to double our business in 12 months we are going to have to get "new business."

Let's define prospecting: Prospecting is looking for brand new, never-sold-by-your-company-before business. Many salespeople and organizations are just moving accounts around or bringing old business back from the dead. This is not prospecting and will not bring the kind of change needed to double business.

How much? If you are an experienced salesperson, two hours a week is a minimum. This is two hours of calling a pre-printed list or hitting a pre-organized list of businesses if you are in the field. This is not two hours with an hour and a half of looking things up on the Internet or driving around "checking for leads." This is a focused two hours a week. If you are a journeyman or rookie, much more prospecting time will be needed.

Propose Big. Start Selling Volume.

To sell volume, we must talk to all of our customers in terms of quarterly, six-month, and year-long programs. This is essential with existing and new customers alike. Especially when we are the preferred supplier in a competitive situation (we are getting over 50Vo of the business), we absolutely need to propose programs to our customers for all the business.

Once we have sold one program, it is time to copy and

paste. Program selling becomes easier and easier the more we do it.

Manage Accounts.

Comfort is the enemy of growth. Hanging onto C+ accounts while trying to construct an A+ sales career is lunacy, but many do it.

We start by doing an 8Ol2O analysis of our accounts. Typically, 807o of our business is coming from 2OVo of the accounts we are working. When we understand where our business is coming from (and not coming from), we can begin to put our energy where we get the biggest return.

Once the bottom 20Vo is split out, do another 80/20 analysis on that group. Anyone in the bottom 807o (who we have been working for over six months) after this split should be taken out of our rotation.

We should do this individually. Sales managers should do this for their group if they are not doing for themselves (they are not). Although account management can be a contentious challenge for sales management, it is the best thing management can do for a sales organization. (Note to sales managers: Get the group to do this on their own and it will be a lot less painful.)

Push Our Best Accounts.

The best place to get business is where we are already getting business. Our best accounts are doing business because we are doing something, or many things, right. We must push them for more. Many sellers are afraid of upsetting their best accounts. Our accounts are expecting us to come to them with new and better solutions. When we bring them these solutions, we

need to ask for more commitment from them.

Dream.

Think about it. Dream about it. Eat it and sleep it. Execute the steps and believe it, and you will double your business in l2 months.

James Olsen Reality Sales Training (so3) s44-35'72

james @ realitysalestraining.com

Adapting to drought and deluge

tTt"t wEATHER LATELY has been weird and wild, but get I used to it. It's the new normal. Climate scientists tell us that weather extremes will be more common and that long-term patterns are shifting.

This doesn't just make the weather report on the evening news more interesting. Consider, for example, that shifting rainfall patterns can affect water supplies, livelihoods, and lifestyles. Some communities are facing drought-or worse-for the first time in living memory. Some places are seeing much more rain, and some are getting their rain or snow sooner or later in the season. Any of these changes can cause big problems for communities who fail to adapt.

This is where dealers can come to the rescue. Changing weather patterns, whether drought or deluge, create opportunities to do good for your community and your business.

For starters, educate yourself about water issues in your areas of operation. If you're in a community already affected, you may already be aware of local and regional rainfall patterns and water supplies. If not, there are good resources online, such as www.noaa.com.

Second, build your expertise in those mitigation and adaptation strategies your community needs. In a drought? Look into rainwater harvesting, greywater recycling systems, high-efficiency toilets, even composting toilets. (Believe it or not, collecting the rain that falls on your roof is illegal in some places, and residential greywater systems are not approved in all communities.) Read Rainwater Harvesting for Drylands & Beyond by Brad Lancaster, one of the nation's leading experts, then share it with your staff.

If your community faces periodic deluge and flooding, there are short-term mitigation and longer term adaptations to evaluate, too. For example, in West Coast urban areas facing huge El Nifro storms, rain barrels can help reduce the runoff that overwhelms storm sewer systems. Softening urban hard surfaces and hardscaping to allow for "slowing, spreading, and sinking" of rainfall, also reduces runoff and recharges aquifers. Permeable pavers, anyone?

For flooding, dry flood-proofing measures and elevation may be viable short-term strategies for dealing with periodic flood risks in some instances. However, flood mitigation is a complicated legal and technical domain-do your homework before diving in.

Once you and your key staff are prepared, start building stock and services around the solutions best suited for your community. Water conservation measures inside the home might be one category that works in every part of the country. And nearly all toilet manufacturers offer high efficiency toilets, but have a look at Niagara Conservation (www.niagaraconservation.com). They make it easy to source a range of water-saving devices, including their ultra high efficiency Stealth .08-gpf toilet.

I'm also a big fan of greywater recycling. It's still early days for residential systems, and most solutions are do it yourself or "green it yourself' projects, but this presents a wonderful merchandising opportunity. Pull all the right components into a robust display, along with the right tools, some books, and related products. Check out www.greywateraction.org for ideas.

And catching the rain-it's a no-brainer for many regions of the country. The key component is storage. The most innovative solution I've seen is RainTechnologies' RainSpace. It's flexible, capacious, and low cost.

These kinds of solutions may require some thinking outside the box and a little extra effort. But they can earn LEED credits for your green builders, conserve water, and improve quality of life in your community. You'll be doing wellby doing good.

Jay TomPt Managing Partner William Verde & Associates (415) 321-0848

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Oregon's Lumber Products Files Chapter 11

Lumber Products, Tualatin, Or., has filed to reorganize under Chapter I 1 bankruptcy protection.

Founded in 1938, the wholesaler operates DCs in six western states, as well as importer Dansu International, Tualatin.

Barr Closes in Apple Valley

Barr Lumber, San Bernardino, Ca., held a liquidation sale and closed its 17-year-old store in Apple Valley, Ca., on April 13, blaming a poor

economy.

Barr was renting the 23000-sq. ft. space on 3.1 acres, which was purchased two years ago by a private investor. Barr continues to operate three stores.

Sterling Adds Colorado Yard

Sterling Lumber & Investment, Westminster, Co., opened a new location March 26 in South Fork. Co.. at a site formerly occupied by ProBuild.

"Folks will see familiar faces when they come to buy goods here, because our employees were employed here

when it was ProBuild," said Jim Gudenkauf, v.p. of Sterling Lumber. "All of our employees live in Rio Grande County, primarily in South Fork."

Operating as South Fork Lumber, the new yard is Sterling's eleventh retail yard in Colorado.

"Usually the company buys out existing stores, so starting from scratch was a little more time-consuming for us, but we are right on track," said James Stephens, who serves as general manager.

New Mexico Stores Renamed Roswell Lumber Co. has given its two retail yards-Roswell Do it Center, Roswell, N.M., and Artesia Do it Center. Artesia. N.M.-a new name: Builders Do it Centers.

"Our history has always been one of change, innovation, and growth," said Bruce Ellis, president and c.e.o. of parent Roswell Lumber, founded in 1902. "We wanted our brand to reflect that bright past and help us be ready for a brighter future."

Both locations were extensively remodeled and re-merchandised. Two new websites were also launched: www.builderdoitcenter.com and www.buildersknowledge.com.

The company also operates Overhead Door of Southeast New Mexico and RLC Supply & Logistics.

Composite, Plastic Lumber Leads Decking Rebound

U.S. demand for wood-plastic composite and plastic lumber is projected to rise 13.ZVo per year from $2.9 billion to $5.4 billion by 20L5, according to a new Freedonia Group study.

Percentage growth will be driven by a rebound in construction expenditures from a depressed 2010 base.

Composite lumber demand will grow l6Vo annually to $2.5 billion in 2015, while plastic will increase nearly ll%o annually to $2.8 billion.

Because composites incorporate recycled materials, they are often viewed as environmentally friendlier. Gains for plastics will be spurred by heightened consumer interest in its low maintenance properties, and manufacturers' efforts to create plastic lumber varieties with more realistic woodgrain textures and surfaces.

l-;'=;w'

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By fames Olan Hutcheson

All you need is trust

(( L LL You NEeo is love." san-e the la.Beatles. But if the Fab Four had been family business owners, the lyric should rightly have been written, "All you need is trust." Family business members often profess their love for each other while withholding their trust. When they don't trust each other, they don't communicate and find it difficult to agree on a common direction. The result is a firm mired in toxic distrust, unable to discuss key issues, frozen in the face of crisis, and, all too often, sickly and short-lived.

A Tale of Mistrust. Brown-Wilbert Co. is an 8O-year-old Minnesota

company that builds burial vaults. It's mostly owned by chief operating officer Christopher Brown, but controlled through voting shares by his father, c.e.o. Jerry Brown, who has worked at the firm since 1960 after marrying the granddaughter of the founder. The company has $20 million in revenues. a solid market position, and a wellestablished brand name. It's also got a major problem with mistrust among the owners and top executives.

The father-and-son executives have sued one another for a combined total of several million dollars, each claiming that the other has misappropriated

company funds for personal use or for investment in other ventures. The two swap charges of self-serving behavior, incompetence, malfeasance, inattention to duty, and other failings in court as well as in the local media.

Will the company survive this battle? So far, Brown-Wilbert is bearing up. But similar struggles have destroyed countless other family firms. At the least, the mistrust has blocked communication, hindered cooperation, drained management attention, and consumed financial resources that would be better devoted to strengthening the company.

For my purposes, however, the Brown-Wilbert case is a good one. It neatly demonstrates the risks and costs of mistrust developing in a family business, as well as most of the available varieties of mistrust and their most common sources.

Kinds of Trust. Several varieties of trust are relevant to family business. First is trust in the competency of family business members. Other members have to be able to trust that their peers are trained, experienced and capable of discharging the responsibilities entrusted to them. That is a basic kind of trust, similar to the trust all business leaders must feel in the people who

work for and with them.

Ethical trust is another essential. It's vital that family business members can be counted on to behave ethically. This doesn't mean merely following the letter of the law. It means following the spirit of the law and the principles behind the corporate code of ethics. In a family business, ethical trust also means trusting family members to put the interests of the family and the firm ahead of their own.

When people have faith in one another's reliability, that's a different kind of trust. You can have the skills and ethics, but if you can't be counted on to show up, you won't win trust.

Communication is the heart of trust. You can't trust someone when you don't know what he or she is thinking. Family members must be able to trust that they can talk about their concerns and be heard, and that others will talk about theirs in a similar manner.

Trust in outsiders is uniquely relevant to family business. Family firms that can't absorb people, practices and ideas from the outside will not live long. It requires trust in foreign concepts and people for that to happen.

Building Trust. Building trust starts with communication. Family members must discuss candidly but

tactfully their thoughts, feelings and even dreams. Of course, communication is more than talking. It's also listening. It's hard to trust someone to look after your concerns when that someone doesn't appear to be listening to you when you express those concerns. So encouraging and institutionalizing talking and listening are key to building trust. Family meetings are the most visible tool for building communication, although there are others.

Talking the talk builds an element of trust, but walking it builds more. That's why trust-builders must welcome genuine, meaningful participation by those with whom they want to share trust. Family members should be asked and encouraged to join in making significant decisions, even if just by gathering information or injecting an opinion.

There are some things you should not do when trying to build trust. One is to trust blindly. It's a mistake to believe that someone should naturally be trusted because he or she is a member of the family, without any proof that the person is, indeed, trustworthy. Likewise, don't continue to trust someone who clearly, repeatedly fails to warrant it. In addition to setting the enterprise up for betrayal, bestowing

blind trust on the undeserving tells other family members that it's not necessary to work hard to develop trust based on competency, reliability, communication, ethical behavior, and openness to outsiders' efforts.

On the flip side, don't be too suspicious. When you monitor everything a family member does, you create an atmosphere of mistrust. Granting trust is a loose-tight proposition. Like holding a wet bar of soap, gripping too loosely allows it to fall, while gripping too tightly causes it to slip away.

Limits of Trust. Trust isn't a cureall and does have its risks. Trusting others doesn't guarantee that they won't disappoint you. And trust won't overcome other management failings, weak markets, poor strategies, or just plain bad luck. But it does help. Without it, even superior management, markets, strategies and luck may come to nothing. From the perspective of family businesses, Elvis Presley may have come closer than the Beatles to the truth when he sang, "We can't build our future on suspicious minds."

- James Olan Hutcheson is managing partner and founder of ReGeneration Partners, a Dallas-based family business consulting firm. Reached him at (800) 406I I l2 or www.regeneration-partners.com.

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Elaina Jackson has been promoted to president and c.e.o. of Pacific Wood Preserving, Bakersfield, Ca., succeeding her late husband, Dick Jackson. Ken Laughlin was named executive v.p.

Bob Bretz, lumber sales, Yakama Forest Products, White Swan, Wa., retired April 30 after 38 years in the industry, the last three with Yakama.

Greg Moss, ex-Moss Lumber, has joined the sales team at The Mill Yard. Arcata. Ca.

Rick Ingram has retired after 40 years in the industry, the last six in sales at Mary's River Lumber, Corvallis, Or.

Kevin Dodds, Joe La Berge, and Grant Philtips, all ex-Buckeye Pacific, have joined Collins Cos., Portland, Or., focusing on green DF and panel sales.

Don Lampert, ex-North Pacific, is new to panel sales at Buckeye Pacific. Portland. Or.

Brett Bleichrodt, ex-Bluelinx, has joined Weyerhaeuser, Denver, Co., as a dealer sales rep.

Jeff Logue has been promoted to division mgr. for Capital Lumber, Healdsburg, Ca., succeeding Jeff Howard, who has retired after 19 years with the company. Asa Johnson was promoted to division mgr. in Denver, Co., succeeding Steve Myrick, who retired after 22 years with Capital.

Mark Jackson, ex-Bridgewell, is a new trader at Idaho Pacific Lumber Co.. Vancouver. Wa.

Jon Kimber, ex-Capital, is new to the sales and distribution division at Snavely Forest Products, Denver, Co.

Rob Robinette, ex-Lumber Products, has been named product mgr. for McKillican International, Sherwood. Or.

Kevin Pratt has been named sales mgr. of inland products for Konecny Brothers Lumber, Ogden, Ut., and will assist in exclusive sales for Goshen Forest Products, Eugene, Or.

Jim Shaffer has rejoined Franklin Building Supply, Boise,Id., as window mgr.

Dan Scherber, ex-BASF, has rejoined Orepac Building Products, Tacoma, Was., as senior certified Tyvek specialist.

Cherie Moorhead joined Nature's Composites, Torrington, Wy., as area sales mgr. for Northern California and northern Nevada.

Shawn Overholtzer, ex-California TrusFrame, is a new truss specialist for Simpson Strong-Tie, Stockton, Ca.

Jaeson Fikse is new to door & window sales at Ganahl Lumber, Buena Park, Ca.

David Bayles, c.e.o./president, Inland Builders Supply/Ace Hardware, Blythe, Ca., and Brennen Jeffers, general mgr., Sun Valley Do It Best Hardware, Deming, N.M., were honored as Young Retailers of the Year by the North American Retail Hardware Association.

T.J. Rosengarth, Northwest Hardwoods, Tacoma, Wa., was elected a director of the Hardwood Manufacturers Associatiorr.

Winsom Cash has resigned from Mungus-Fungus Forest Products, Climax, Nv., after striking it big in the state lottery, report Hugh Mungus and Freddy Fungus.

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Capital Helps Tru-Dry Return

Mothballed since 2010, eight HeatWave Radio Frequency Vacuum Kilns are once again producing TruDry timbers.

Capital Lumber, Phoenix, Az., has entered into an agreement with Craftmark Inc., McMinnville, Or., to exclusively manage the inventory and act as sales agents for Tru-Dry timbers. The brand was previously manufactured by Forest Grove Lumber, McMinnville.

"We have been working for a while to obtain this technology," said Denny Elmer, president of Craftmark. "With the technical oversight of one of the original operators of the RFV kilns and the sales acumen of the original salespeople who are now with Capital, we will be well prepared to bring Tru-Dry back to market."

Jim McCluskey, manager of Capital's operations in Portland, Or., noted, "This is a great opportunity for Capital and a perfect pairing of resources. The Tru-Dry brand is well known, and there has been a noticeable void in the timber business without it."

Gene Secco and Ryan Williams, formerly with Forest Grove Lumber, have joined Capital in Portland to handle the inventory management and sales of Tru-Dry.

OSH Opens #4 in Fresno

Orchard Supply Hardware, San Jose, Ca., held an April 14 grand opening for its new store in Fresno, Ca.-the chain's 88th store and its fourth in Fresno.

According to manager Mike Ellis, the 50,000-sq. ft. store has a 7,700-sq. ft. garden center and features a newly designed store format with an easy-to-navigate layout and a new customer service center called Workbench.

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Parley '6Bill" Cherry, 86, retired founder of former Colorado Forest Industries, Denver, Co., died March l7 in Denver.

During World War II, he served with the Army Air Corp. as an air cadet. Afterwards, he attended the University of Idaho and graduated with a degree in forestry.

In 1983, he and his son Dan started CedarWest Corp., Lakewood, Co. Six years later, they moved to a new building in Denver and changed the

name of the company to Colorado Forest Industries.

Mr. Cherry retired in 1999, and the company was sold to J.M. Thomas Forest Products in 2009.

Harry Barth t'Barttt Palmer, 86, former general manager of Edward Hines Lumber, Lafayette, Co., died Dec. l6 in Broomfield, Co.

After serving with the Navy during World War II. he attended Colorado State University and graduated with degrees in industrial forestry and general education.

In 1975, he joined Edward Hines,

serving as general manager for the next l2 years.

George S. Yates, 86, former vice president of Denver Lumber, Denver, Co., died March 3 in Denver.

Mr. Yates joined the family business in 1952.In 1995, he was named Lumberman of the Year by Mountain States Lumber & Buildins Material Association.

Max C. Hittle, 83, longtime Colorado lumberman, died March 14 in Westminster, Co.

Mr. Hittle had a 30-year career in the lumber industry, working for such companies as Lumber Yard Supply, Gene Wright/Dependable Lumber Co., Rounds & Porter Co., Slaughter Brothers Lumber, and Reid & Wright.

Scarborough Home Centers, Scotts Valley, Ca., is opening a 4,200-sq. ft. Ace Hardware this summer in carmel, ca.

Orchard Supply Hardware has backed out of plans to open a store in Tamalpais Valley, Ca.

Mitchell Hardware is opening a third,7,000-sq. ft. Ace Hardware & Paint in Bend, Or. The chain also operates three stores in Washington.

Mayson Ace Hardw?ro has moved to a new location in Fresno, Ca.

Home Depot opened a new 106,000-sq. ft. store with 35,000-sq. ft. garden center April 26 in Lodi, Ca. (Jessica Larsen, store mgr.).

Depot will relocate its oldest Western region store-a 27 -year-old unit in Fullerton, Ca.-on Aug. 30.

Lowe's relocated its Sparks, Nv., home center to a new 103,000-sq. ft. facility in E. Sparks and opened new locations Feb. 2 in Fairfield (Suzanne Mooers, store mgr.) and Mid-City Los Angeles, Ca.

Habitat for Humanity neto a grand opening April 22 for its new ReStore discount home center in SimiValley, Ca., and by June will move its Roseville, Ca., store to a larger, 30,000-sq. ft. space.

Pacific Coast Buys Pioneer Builders

Pacific Coast Supply, Rancho Cordova, Ca., has acquired six-unit Pioneer Builders Supply, Tacoma, Wa.

In business since 1960, Pioneer distributes roofing from locations in Tacoma, Bremerton. Tumwater. Kent. Seattle. and Bellevue, Wa.

One of several divisions of Pacific Coast Building Products, Pacific Coast Supply also operates yards under the banners Anderson Lumber, Diamond Pacific, P.C. Wholesale, and Weyrick Pacific.

Ex- Sawmill Worker Pleads Guilty

A former worker at Stimson Lumber, Portland, Or., has pleaded guilty to aiding the transportation of stolen lumber.

According to court records, Trevor Mokry was responsible for loading and unloading trucks at Stimson's mill in Plummer, Id. He admitted entering into an unauthorized "mill direct" sales arrangement with Pallet Place, Spokane, Wa., which paid him $581,000 for the stolen lumber between June 2007 and June 201l. Mokry loaded Pallet's truck and received a check from the driver.

The charge is punishable by up to l0 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Sentencing is set for July 16.

Meyer Moulding & Millwork, Modesto, Ca., has temporarily discontinued production, but continues selling from inventory.

Owner Jeff Meyer hopes to restart operations if new financing can be found.

Gompass Lumber Products, Cotati, Ca., is winding down operations after 34 years.

Bow Hill Mill, aunington, Wa., has resumed operations at its cedar mill.

Emerald Forest Products, Emmett, td., hopes to restart its sawmill May 15 and ramp up to full capacity within four months. The faciity has been idled since April 2011.

Sunset Moulding Co., Live Oak, Ca., has installed a new moulding and finishing line at its plant in ldabel, Ok.

CertainTeed's roofing plant in Portland, Or., has achieved lS0 14001 certification.

Amber Flooring, Emeryville, Ca., is now dishibutor of Coswick Hardwo6d's sotid and engineered flooiring in Northern California.

Dunn-Edwards' new 336,000-sq. ft. paint manufacturing plant in Phoenix, Az., received a real estate & development award as best industrial project from Arizona Commercial Real Esfafe.

National Nail Corp., Grand Rapids, Mi., launched a new website-stingerworld.com-to promote its Stinger cap systems.

Anniversaries: Straight Line Transport, Huntington Beach, Ca., 10th.

27'2547

Home Depot Opens Biggest Store in the West

An April 14 grand re-opening celebrated the transformation of Home Depot's store in Anaheim Hills, Ca., into a new 205,000-sq. ft. superstore.

The first of its kind in the WestDepot's only other superstore is located in Union, N.J.-the new facility was created by combining the original store and an adjacent Kmart that had been empty for years.

The store has a new layout with three main sections: home improvement supplies on one end and in the back, home design in the middle, and outdoor/garden on the other end. A large counter dedicated to returns has its own room and conidor, near one of the entrances. A large customer service area located in the center of the store features a central counter and a waiting area with armchairs.

Trade professionals such as interior designers can meet with clients in transparent but enclosed meeting rooms near the tile displays. Contractors have their own service counter near a door where they can pull up their trucks and load their purchases.

Other new features include free wifi, 50 additional employees, expanded

appliance and bath showrooms, a shower gallery, more kitchen cabinet displays, an outdoor living showroom, more rugs and other home accessories,

more hardware, and more space for tile, wood and laminate flooring. No other superstores are currently in the works for the West.

By Swaraj Pandey

NAWLA Education Foundation Gourse: A firsthand account

lne NAWLA Eottcsrror,t FoundaI tion, or "NEF," was started by the North American Wholesale Lumber Association in 2011 to educate, inspire, and plant a new generation of leaders throughout the forest products industry. NEF collaborates with universities to offer students engaging coursework, exciting field experiences, and practical internships in the lumber distributionfield.

The first NEF class was held at the University of Wisconsin-Stout in January. Twenty-one students spent one week learning about the complexities of the lumber supply chain and what the industry offers as a career option. The students ere now eligible for internships with NAWI,A members.

The article below is a firsthand account of the program from one of those students, Swaraj Pandey:

The construction department at my college, UW-Stout, paired with the NEF to offer a course that is a great fit for students in a broad range of majors. By enrolling in this course, students qualify for an intern opportunity with NAWLA members. In fact, to qualify for the internship, a student must complete this intensive, threecredit course focused on the lumber, building material, and supply chain.

The course consisted of lectures, field trips, and case studies. The first day of the course started with a brief introduction related to the course requirements and schedules. We learned about forest ecology, ecosystem services, forest succession, and forest regeneration under natural and managed scenarios. Additional lectures were given on forest management and harvesting, including forest

certification.

Later in the afternoon, we went for a field trip to the school forest in Bjornson Education-Recreation Center. The center has 443 acres of land. We were accompanied by a local forester who displayed extensive knowledge of forestry. We observed the principles of forest ecology, forest management, and harvesting. The property was a mix of northern hardwoods (maple, oak, ash, basswood, yellow and white birch) and coniferous plantations (red and white pine, spruce) with stands of poplar. The forest management plan included select hardwood cuts, pine plantation thinning, aspen cuts, oak regeneration, and timber stand improvement projects.

On the second day, we went for a two-hour virtual field trip to Andersen Windows in Bayport, Mn. We were able to look at step-by-step processes where several home projects were in progress by top builders. Andersen Windows uses 987o of their raw materials and develops long-lasting products that have a minimal adverse effect on the environment. Over 70Vo of their wood is sourced from forests certified by the Forest Stewardship Council and the Sustainable Forestry Initiative. It was an impressive tour packed with useful information.

The third day included a tour of Weekes Forest Products, a major stocking wholesaler. We toured their reload center and learned about a wide variety of lumber, panels, engineered wood, industrial products, and related specialty building products. Our next destination was Viking Forest Products, Eden Prairie, Mn., distributors of OSB, plywood and softwood lumber products. Viking's business

STUDENTS from University of Washington-Stout visited woodlands and production facilities during a five-day course co-sponsored by the NAWLA Education Foundation.

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CAREER PANEL allowed professionals to share with students how they chose the lumber industry.

model stresses a reliable supply of the right product, on time, at a fair price. They also gave us some hands-on work experience with the customer, which everyone thoroughly enjoyed.

Next stop was the Silverwood Park Visitor's Center in St. Anthony. The main purpose of the building is to showcase and promote sustainability, while reducing day-to-day operating costs. The building is a 2009 Woodworks Design Award winner for its innovative structural use of wood.

Next we went to Bethel University in Arden Hills and explored the George Brushaber Commons building, which has a 6,500 sq. ft. green roof that incorporates a water retention system. We learned about their use of glulam beams, purlins, and wood decks, which gives the place a warm appeal and timeless aesthetic.

We also learned about the challenges faced in constructing this space, necessitating the design of twoway cantilevered roof framing that extended outside of the building envelope. This building is also a 2OO9 Woodworks Design Award winner for innovative structural use of wood.

In the last two days of the course, we spent most of our time in the classroom learning about various aspects of the lumber business. The basics of logistic and supply chain management were taught in terms of wood and building materials. We had discussions based on the current issues that are prevalent in the corporate world and the importance of having industry associations.

Construction systems and wood use in non-residential construction area was our focus in a class comprise mostly of construction and engineering majors. We learned about evolving markets for wood-derived energy and bio-chemicals.

Discussion with the various members ofthe career panel was held at the end of the course. These professionals shared their life stories and their path towards the lumber industry. It was very inspiring because each of us could relate to what they were talking about. At the end. we had the chance to ask questions of each panelist.

Overall, this course provided students with a perfect platform that inspires us to get involved in the lumber industry in the long run. I have very positive impressions of the course and the industry. My major is business administration with an emphasis on supply chain management/quality management. I have always been curious to learn more about logistics in lumber: from logging to readiness for use as structural material for construction or wood pulp for paper production.

Many recent graduates are not familiar with the lumber business or the opportunities it offers, but this industry offers a wide range of professional opportunities in both private and public sectors. It is a multibillion dollar industry that is both high-tech and environmentally conscious. The wide focus of the professional training, with its emphasis on organization and management, offers extensive job opportunities inside the lumber industry. There are many possibilities for further professional development as graduates can progress to higher management positions within a few years of experience. Students like me have the opportunity to work at a variety of companies, contributing in such areas as accounting and finance, marketing and sales, management, engineering, and logistic operations.

This five-day course has given me an opportunity to work with NAWLA as its marketing intern, which itself is a big achievement. Coming from a business background with little knowledge about the lumber industry,I now have the chance to learn more about this industry from the ones who know it the best.

As far as recruiting students to this industry is concerned, companies are responsible for promoting the lumber industry and providing career awareness for students who are graduating or have graduated. Surveys continually show that there are more jobs available than there are graduates to fill them in this sector.

Companies have to seek top, qualified students who will be motivated and excited to contribute to businesses within the industry. Brand positioning is one of the strategies that the companies can focus on, by selling the company's values to prospective job seekers. Companies should hold seminars and educational conferences so that they can have better communication and feedback with the students. Career fairs are one of the most important events in a college. Companies need to attend these fairs and interact with the students by providing career awareness and opportunities related to the forest product industry.

Programs like NEF are blessings in disguise for the lumber industry, which is going to attract a lot of new graduates to become the industry's future leaders.

- Companies interested in more information on internships s hould v is it www.nawlae ducationfoundation.or g.

Financial pitfalls of selling to newly acquired companies

. The former company was a partnership or proprietorship, and so is the new business

Since the assets of the owner(s) in a partnership or proprietorship are subject to creditors, knowing the personal financial strength of new ownership is essential to establishing the strength and liquidity of the company.

The company was a partnership or proprietorship, and is now operating as a corporation or limited liabitity company

/-\oveeNIES ARE oN high alert today when it comes to \-, closely watching their trading partners' purchasing patterns and pay habits. The challenging economy and a continued tight lending environment have only served to increase pressure on creditors to be vigilant in looking for warning signs from customers, such as changes in orders or an increase in delinquent pay.

Perhaps the most significant concern is when a longstanding customer is sold to new owners. Immediately, relevant questions leap to mind: Will my current invoices be paid in full and on time? Will the new ownership continue to buy from me in the future?

Of equal significance are details frequently overlooked-the what, who, and how-concerning a change in ownership. What was actually acquired by the new owner(s)? What is the legal structure or formation of the new company? How did the buyers fund the purchase? And, often most importantly, what is the experience and background of the new owner(s)?

The following sections will illustrate how careful, proactive due diligence should uncover the answers to these and other essential questions.

Whatr The legal formation of the company

The first step in determining the legal structure of a newly acquired business-and how different it may be from the original entity-is knowing whether it is a partnership, S or C corporation, proprietorship, or limited liability company. This designation plays a crucial role in understanding the liability of the new owners and, most notably, their personal liability, which can affect the creditworthiness of the company.

The following scenarios illustrate the potential impact of a new owner on a firm's creditworthiness:

If a partnership or proprietorship's assets are purchased and incorporated, most likely, certain personal assets (i.e., a home, retirement accounts, etc.) of the former owner will not be included in the sale. If this is the case, the liability of the new ownership is limited to the actual assets purchased and placed into the corporation. As such, the amount of assets available to creditors will have diminished; knowing which assets were transferred into the new corporation will help determine if the new company's balance sheet is as strong as before the purchase.

. The company operated as a corporation and the purchase included all outstanding capital stock of the organization

In purchasing all capital stock, new ownership acquires all assets and liabilities of the former owners, which are then subject to creditors'rights.

How: Details of the purchase

In addition to understanding the new company's legal structure, it is also advisable to know how the purchase was financed. Some new owners may not publicize details of the acquisition, but this information may have direct impact on the company's creditworthiness going forward. Understanding the new firm's financing will verify any impact it may have on its financial position. Since most companies are corporations, the following illustrations assume the purchase was for the former owner's capital stock:

. New owner(s) bought the company using personal finances

The company itself does not incur any debt and there is no direct impact on its equity position. It should be noted, however, if the new owner obtained personal financing to buy the stock, the lending institution likely would require collateral to be posted against the loan-and business assets are often pledged as collateral.

. New owner(s) borrowed money from a financial institution for the capital stock and will retire the (treasury) stock

The company's balance sheet shows an increase in lia-

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bilities by way of long-term debt, with a corresponding negative entry on its capital statement, creating a negative effect in overall equity position.

. New owner(s) financed the purchase of capital stock through a note payable to the former owner(s)

A payout agreement is signed, requiring installment payments to the former owner(s). Similar to bank financing, this creates long-term debt affecting the liability section of the balance sheet. With the addition of

debt, the overall equity of the company can be impacted.

Keep in mind, with the last two scenarios, adding debt to the company's balance sheet can have an effect on its working capital position as well.

Who: The new ownershipts vision for the company

Another more tangible aspect of an acquisition concerns how new owner(s) will manage and operate the company. When a business changes

hands, there is no guarantee the new owners will handle day-to-day operations in the same manner as their predecessors. The following questions need to be answered to determine whether to continue doing business with the company:

. What is new ownership's vision for the company?

Oftentimes, new ownership may look to expand the company's focus to include new product offerings, obtain new customers, or change buying and/or selling strategies. Expanding a product line may be detrimental if the company has no experience in that particular business segment. Adding new customers is generally a focal point of all companies; however, the quality of new accounts may impact you and your business.

For example, if new accounts are slow in paying, it could have a domino effect on how fast you are paid.

What is the background of the new owners?

An essential question to consider prior to continuing your association with an account is the industry-related management experience of the new owners. Consider the following questions about the new ownership when making this determination:

x Do they already own an established company within the industry?

Creates the highest confidence level with a solid track record of experience, trading practices, and financial strength already known throughout the industry.

x Were they a key part of former company's senior management team?

Examples include a former officer such as c.f.o., c.o.o., or vice president of operations with several years experience. Generally, these individuals were an integral part of the company through leadership and decision-making responsibilities. As such, they are more likely to lead and manage business relationships successfully.

x Were they a key part of former company's operations or sales team?

Examples include a former general manager or vice president of sales, already known to your company. However, given these individuals probably did not have measurable control over how the company's finances were handled, payment procedures and finances of the new firm should be

closely monitored.

* Is this a succession of next-generation family member( s )?

It is important to know which family member will be taking control, along with his/her previous role and tenure within the organization. For example, a family member who had an integral role running daily operations over several years versus one who only recently joined the company could have a vastly different effect on the business.

* Do they have little or no industry background and experience ?

The lumber industry is unique unto itself and though a lack of specific experience doesn't mean a company's

performance will be adversely affected, lacking an industry track record is an element of uncertainty that won't show up on a balance sheet. When owners without industry experience take over, you must consider their experience in other industries and meet with them personally. Additional questions to ask: Are the new owners actively committed to their customers, suppliers, and the industry? Are they asking the right questions, interested in learning, or acting as if they already have all the answers?

Much to consider

Whenever a company is sold, there are many factors to consider in determining whether to continue or scale

back your working relationship. Questions about structure, ownership, finances, and background are essential and must be answered. Blue Book Services uses these very questions and subsequent answers to determine if an existing rating will continue following the sale. You, too, can benefit by asking these questions, or at minimum, obtaining an in-depth Blue Book business repoft as a necessary step in your due diligence.

- Ken Schultz is v.p. oJ rating services at Blue Book Services, a leading credit and marketing inform.ation agency for the lumber industry. He has over 20 years experience with Blue Book and is a certified credit executive. Contact him at (630) 6683500 or kschultz@ bluebookservices.com.

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NAWLA Traders Market returns to Ghicago

7Tlnnoens Me,nxer will be returning I "home" to Chicaeo in 20 I2 after spending a year in Lis Vegas. It will be the sixth time the show is held in Chicago, giving it a familiar feel to many attendees. The 20 l2 Traders Market will be held November 7-9 at the Hyatt Regency Chicago.

Since 1996, Traders Market has held a unique position among lumber and building material tradeshows since it is the only one that is focused almost exclusively on the lumber supply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers.

This focus on supply chain partners has fostered an unrivaled atmosphere for networking. In today's global marketplace, Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million dollar deals are still made with a handshake, that personal networking is invaluable.

At time when many tradeshows are struggling, Traders Market continues to grow. Overall attendance in 2011 increased TlVo from 2010, with almost 1300 attendees from 10 countries. As in 20 10, the attendee profile was almost evenly split between wholesalers and manufacturers.

"We are proud that Traders Market

has solidified its place as the tradeshow you can't afford to miss," says Gary Vitale, NAWLA c.e.o. and president. "The lumber industry may be struggling, but the companies who attend the show can help position themselves for success."

The 2012 show will follow the successful and popular format from the last couple of years. The floor show will be open on Thursday and Friday, allowing attendees to enjoy Chicago over the weekend or return home. Other recent additions, such as the Product Showcase, will also retum.

One big change this year is that NAWLA has added new membership categories that will also be able to attend the show. Of special note is that timberland owners and architects are now eligible to be associate members. Their presence at the show will increase the number of timber providers and product specifiers. Lumber mills who exhibit will benefit from having both their suppliers and end users attend.

"Traders Market has become one of the best values in the lumber industry," says Vitale. "In fact, the fees have remained the same since 2008, at a time when the cost of just about everything has gone up. We want the attendees to know the show is there to serve them."

The Traders Market websitewww.naw latradersmarket.comhas complete information on the schedule, fees, floor layout, hotel reservations, and sponsorships. Registration has already opened for exhibiting companies and individual attendees. Once again, registration will be exclusively online.

The vital tension: Managing multi-generational teams

f, cconotNc ro A recent Fortune article penned by lLcolleen Leahv. more than 13 million workers will be 65 and older by i\ZZ.thut'" up 7.3 million from today. Currently, more than one-third of the U.S. workforce is made up of Baby Boomers. What role does the ongoing presence ofpost-retirement-aged workers play in the effectiveness-and the motivation - of intergenerational teams?

The dynamic of intergenerational teams-those workgroups made of employees from more than one generations-can be either a source of conflict or can lead to cooperation, collaboration, and a more balanced and productive team. For leaders, the differences that intergenerational teams bring to the workplace can be an asset in cre-

ating a varied idea exchange leading to greater innovation.

CBS Money Watch recently quoted a blog post by Careerealism, a career management blog: "By having a multi-generational workforce, blind spots can be avoided to a large degree. A clear example is the issue of technology. The young bulls (of either gender) want to have technology, technology, and more technology. The older bulls (of either gender) can put a quash on making the company technology based for technology's sake. This vital tension means that essential technology will be implemented, but non-essential technology will not-at least ideally."

Also, younger workers are more likely to take risks that can benefit the company if there is a safety net of older workers to catch them if they fall. Conversely, older workers can rapidly fall behind the times and be beat by competitors if they don't keep up. A multi-generational workforce lets each generation do what they do best, without a fear that something will be missed. This leads to greater creativity and a better flow of ideas within the company.

This vital tension creates an opportunity for team members, of all ages, to share their own unique perspectives, work to their own strengths, approach each problem differently, and offer solutions that may have not been considered before. So as a result, among those differences lies a common ground: the common project or company goal toward which each team member strives. And each team member is pivotal in balancing out the other.

Understanding that each person's personality creates a gateway into their work style and problem-solving meth-

ods, regardless of generation, should be encouraged. A focus on individual personality, and the personality dynamics of a team, as opposed to generalizations about groups, is the foundation for unleashing the power of diversity in the workplace.

Unlocking the inherent strengths of each team member can provide an opportunity to create a work plan that can further drive success in a multigenerational team. In fact, Jennifer Deal , author of Retiring the Generation Gap: How Employees Young & Old Can Find Common Ground, suggests that people from different generations have surprisingly similar values for what they seek at work. She found consistency in wanting credible and trustworthy leaders, little change, and someone to coach them. So if we all tend to hold similar workplace values, what may cause the "tension" may lie in "how" this is accomplished and in the "who" of personality dynamics.

Understanding generational differences in "how" people approach work, coupled with an understanding of who people are and what motivates team members, is likely to increase acceptance of others and provide a framework to take individuals and create a team.

Further, we all get older, but our generational cohort remains. Older workers tend to report higher levels of overall job satisfaction and commitment. Research in the 1970s and 1980s, before Generation X was working, showed evidence of negativc stereotypes and attitudes towards older workers in general. Since we will all age as we work, the importance of understanding our generational cohort, intergenerational differences, and our own personality strengths becomes critical to alleviate age-related stereotypes of our teammates that could result in a dysfunctional or an underperforming team.

This type of discussion facilitates team development. The important thing to know about team development, especially in a diverse team, is that nothing is a quick fix. Teams are dynamic. Individuals come and go, develop their own strengths, age. Goals and objectives will change over time. Development must be ongoingit should begin with the current team or at the time of hire and continue

throughout the company indefinitely. It isn't until the company embraces team development as part of its culture that a team can be truly effective.

For example, perhaps your team meets once a month to go over both past and upcoming projects and how they efficiently moved forward or were delayed. By recognizing personality differences, the team may realize efficiency was strengthened or weakened by clashing personalities. The team can then go over its strengths and come up with creative processes or strategies, together with their manager, to ensure that the team works even more effectively moving forward.

When leaders present such processes as growth opportunities, it will help to engage employees. Team development can be customized and tied directly to company goals and objectives-both for revenue growth and employee retention.

The implications from the Fortune article are endless, but there is one thing for certain: no matter the company or the industry, in cases where employees are working in multigenerational teams, it's imperative to implement team development programs. Leaders must understand who makes up the team, from not only a generational perspective, but also from a personality perspective, and use those insights to understand what each individual brings to the table in order to get the most from the team as a whole.

With regard to organizational strategy. it's important to pinpoint potential team issues before they become detractors of productivity-which is why leaders should foster regular team discussions around projects goals and outcomes.

Older employees can offer endless value and experience to their teams, and younger workers coming into the workforce can bring fresh perspectives on age-old processes. Keeping up in a world that changes minute by minute requires an investment in the people who will take the company forwardas well as an understanding of how each unique individual contributes to the bottom line, regardless of age.

- Herb Greenberg, Ph.D., is the founder and c.e.o. and Patick Sweeney is president of international management consulting firm Caliper, Princeton, N.J. Reach them via www.caliperonline .com.

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Funding working capital in the new economy Take contrgl of your destiny

tTl"u BUILDINC INDUSTRY enjoyed I- unprecedented growth during a decade of economic expansion, which peaked in the first quarter of 2006.

Quarterly GDP growth, housing starts, and the U.S. banking system decelerated like a wild roller coaster in 2OO1 and 2009. Executives who engineered survival strategies should be given gold medals. Instead, their reward is a new challenge to fund the working capital required to finance the inevitable industry recovery amidst a changed banking system.

There is a silver lining to every cloud. Adversity breeds innovation. A glance in the economic rear view mirror serves as a shocking recognition of the realities of the "New Normal" economy. Business owners may be in the hot seat, rather than the driver's seat, in financing growth needs. Success starts with a mindset shift toward internally generated cash to reduce outside funding needs (better positioning a firm as a candidate for funding) and awareness of innovative new funding to align needs to solutions.

Economy of the future: t'New Normaltt

Some 437 banks have failed since 2007. This includes 306 in 20092010,92 in 201 l, and I I in first quarter 2012. The FDIC placed 844 of the remaining 7,436 banks on a watch list near the end of 2011. Trepp LLC's 2012 Banking Sector Outlook categorizes 218 banks as representing a high

risk of failure. Reuter's "Credit Crunch an Unusual Ally in U.S. Lumber Rally" (March 14, 2Ol2) indicated distributors are having trouble buying lumber in the tight stocks environment and-unable to get capital from banks-are buying futures. This is continued evidence of the lingering bank credit crunch of recent years.

Bloomberg BusinessWeeft 's "Why Small Business Can't Get Financing" (Sept. 2010) highlights severe financing challenges faced by small businesses. The top concern of small businesses is access to capital. More than 507o felt they could increase sales with additional financing.

The Chicago Tribune's "Sluggish Economy Feels Like New Normal" (June I 2. 2010\ suggests economic sickness beginning in the financial

system lingers in the economy a long time. This creates a long sluggish period with high government debt, slow economic growth of 27o to 2.57o, and sticky unemployment. This lasts so long, it begins to feel "normal."

These factors and unemployment drive housing starts, which create demand for building materials. Starts peaked at seasonally adjusted 2,213,00 in January 2006 and hit the trough of 478000 in April 2009. This is decline of 79Vo and the worst activity level since 1959. Starts were 610,000 in 201I, and are projected to be 678,000 in 2012. Putting this in perspective, starts did not drop below I million any year between 1960 and 20011

Companies survived this Great Recession by liquidating assets, stretching payables, and slashing overhead. The U.S. recession technically last 18 months, from December 2007 through June 2009. However, housing and building products lag overall economic recovery. Building products faces the "Great Hangover." Next? The welcome, but painful, need to finance working capital for growth. Given the lingering pain within the banking industry, fresh funding approaches are mandatory.

Building Products: Preparing for the roller coasterts "third turntt

The industry's wild roller coaster decelerated at "Turn l" in the third

quarter of 2008 with financial market turmoil, a business failure epidemic, and GDP growth of -67o. This was a dramatic fall from 5.17o GDP growth in first quarter 2006. Turn 2 began in 2009 as housing starts plummeted 79Vo from the January 2006 peak, and continues as firms hold on for survival pending economic recovery.

The long-awaited Turn 3 is showing recovery signs of the market turning upward. Turn 3 presents a new challenge, one of funding growth driven by long-term housing demographics. Banking's loss-driven aversion to housing-driven businesses is a challenge. If housing starts double from around 610,000 in 20ll to 1,220,000 within a few years, which is possible, the industry's working capital needs will also double.

Executives face daily sales, operations, employee, and financial challenges. Cash is the "fuel" required to operate a business. Without it, the business stops.

Six steps to funding working capital & taking control of your destiny

At PLM, we understand that you need an insurance company with property and casualty insurance products and services that you can trust today and tomorrow.

Step

1:

Shift

Mindset to Prioritize Financial Concepts

Countless books bombard executives with magical solutions for improving working capital. There are no silver bullets. There is no substitute for disciplined executution of basic concepts. How and where should companies focus on financial priorities? The simple I, D & A approach: Inside the company. Down the financial statements. Across the order-to-cash cycle. This results in both operational and financial discipline producing and profitability.

Focusing "inside the company" generates cash before relying on loans. Concentrate on what you control. Companies will generate more cash and/or become a better candidate for subsequent financing altematives.

Step 2: Look Down the Balance Sheet for the Greatest Cash Opportunities.

Think of the 80/20 rules. Which 2O7o of balance sheet items provide 80% of the cash generation opportunity? Receivables, inventory and payables are obvious targets.

Step 3: Look Down the Income Statement for Profit Margin or

For over 'l OO years, our experts have been providing quality claims and risk management services to the lumber, woodworking and building material industries. Remember, "you get what you pay for." We understand wood. We know your business... because it's our business too. Wood is all we do.

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Cost Improvements.

Olrportunitics to irnprove profit rtrargirts and/or recluce operirtin-u cxpelrses. albcit even by sniitll percclltages. producc significant bcncfits.

Step -l: Use the Statement of Cash Flows to Understand Working Capital Requirements.

Cash, not nct inconre. is kingl This irnportiint. grtlssly undcrutilizccl tool rcconciles net incontc to net cash.

Step 5: Look Across the Order-to-Cash Cycle to Tighten Costly Process Gaps.

Cf'O Muguz.llre '.r "Working Capital Scorecarcl" (Jttne

20 I l) bcnchnrarks working capital across many industries by using a Days Working Capital (DWC) nreasure. DWC is cornprisecl of days of sltles outstanding in acctlunts reccivable (DSO). plus days of inventory on hand (DlO). less outstancling accounts payable (DPO). (Notc: Many l-irrns use cost ol'goods sold in lieu of sales fbr both inventory and payablcs calculations.) Figure | (ubrtve) illustratcs thc workir.r-l capital intensive nature of building products br.rsinesses. ancl distribr.rtors.

What clocs 53 days of working cripital outstanding mcan? Exarnplc: A building ntaterials business with $60rnillion annual sales. dividcd by 360 days, generatcs

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$167,000 in sales daily. A one-day improvement in DWC is worth $167,000 in working capital. The 53 DWC days multiplied by $167,000 equals $7,651 000 in net working capital funding.

Most businesses suffer from process linkages and inefficiencies across the order-to-cash cycle, such as billing delays, which add working capital needs in addition to the DWC calculation above.

Accounts receivable is a large, critical working capital improvement lever. Why? Receivables are the "closest to cash" asset, and can account for up to 40Vo of assets and half of the net working capital investment. Waiting 35 to 45 days for payment is problematic enough, but there is also the risk of non-payment loss.

Inventories are equally important. Both receivables and inventory must serve as a solid collateral base for working capital loans. Poorly managed receivables and inventories are not attractive to funding sources.

Step 6: Seek New Funding Options Available in the Market.

Success with steps 1 through 5 positions any business as a stronger candidate for traditional or new funding solutions. Internally generated cash results in a "cleaner house" with more efficiently managed capital assets and quality lender collateral.

Financing sources prefer to fund growth of a well-run company, rather than funding the clean up of old problems. In a market with more aversion to risk, tight underwriting standards, and limited funding, firms with wellmanaged working capital assets have more success with [inancing.

Working capital funding alternatives

Business owners have many options. Each is designed to meet different needs, and each has both pro and con tradeoffs. Types of traditional working capital funding include:

Bank Line of Credit (LOC)

This has been common for established businesses with strong credit, quality assets, and solid cash flow. Small businesses are challenged to secure this type of funding in today's banking environment.

Asset Based Loan (ABL)

ABL loans may be a fit for highly

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seasonal businesses with detailed historical financials and significant assets, which may be tightly monitored. Lenders today are concerned about valuation of collateral.

Equity

This works if the owner is willing and able to invest significant personal assets in the business, and/or take on new partners. However, it is often the most expensive type of financing.

. Factoring of Receivables or Purchase Orders

Factoring can be an expensive funding option, albeit with advantages for early stage or high growth businesses with quality accounts receivables or purchase orders.

. Equity Investors and/or Sale of Your Business:

Many private equity investors are warming up to investing in building materials related firms. "Buildine Products ManufacturersA Mitigated Strategy to Invest in the Distressed Real Estate Market" (March 15,2Ol2), by Don Walker, John Burns Real Estate Consulting, is encouraging. He indicates that an investment in building materials manufacturing allows one to bet on the recovery without the complexity of investing directly in distressed real estate.

neering & Construction Group, sees a large buy-side demand in the market.

FMI's Porter Wiley, managing director of the Building Products Practice, reports seeing lots of demand on the buy and sell side. Both sources, along with others, indicate the challenge is multiples not being in line with historical averages due to depressed EBITDA. An improving housing market should alleviate this to enable more M&A activity in 2012-2o13.

Economic adversity also breeds innovation, in the form of new types of funding. "Entrepreneurs Turn to Alternative Finance" (BusinessWeek. com, Sept. 2009) indicated that assetbased lenders, factors and others are filling the void created by banks tighr ening lending standards

Focus on accounts receivable first is paramount. Why? Business trade credit in the U.S. is 1.5 times larger than the commercial bank loan market (Credit Research Foundation, 2009). For building products firms, accounts receivable is one of the largest, controllable and the closest-to-cash asset.

Professional Collection/Receivables Management

receivable collections and reduce overhead expense.

. Sale of Old or Written Off Receivables

All firms have sustained uncollectible accounts receivable accounts resulting in charge-offs to bad debts. Brown & Joseph offers a program to evaluate these old receivables free of charge and pursue collection of same based on pure contingency fees. This can be "found cash."

. Business Line of Credit (Business LOC)

Atlanta-based AdvancedAR offers a business line of credit altemative to direct bank financing, by combining professional accounts receivable management with fast access to financing at attractive rates. By improving your receivables processes to reduce DSO and bad debt, accounts receivable serves as collateral for the credit line.

. M&A Liquidity Options

Many business owners have survived the recession and desire exit options. Atlanta-based M&A Marketplace by CHC is an innovative concept to connect owners/sellers with pre-screened buyers via a sellerfriendly auction without the cost and complexity of the investment bankinglbroker process.

Reverse Factoring

"M&A:

2011

Review & Look Ahead," by BMO Hanis Bank's Engi-

Firms like Chicago-based Brown & Joseph combine the latest credit intelligence technology with professional resources typically unavailable to smaller firms. Businesses are utilizing outsourcing-type solutions to more effectively manage accounts

Montreal Rackr Racks Systems

ExpoCredit Corp., Miami, is partnering with Banco Sabadell to provide a program that helps business cost effectively extend trade payables to suppliers. This is an opportunity for a business to extend trade credit financing, while enabling the supplier to obtain faster payment.

. Trade Finance, Purchase Order Financing, & SBA-Backed Loans

Hana Financial, Los Angeles, provides an array of alternatives. This firm handles financing for all sizes of clients with options ranging from factoring of receivables to complex purchase order financing and SBA loans.

' Supply Chain Financing

Konnecta, Atlanta, has developed an innovative program with HSBC Bank, combining a rich technology platform, trade credit expertise, and financing pre-qualification to cost effectively facilitate trade credit financing for both suppliers and cus-

hntrct Todd Hopman at &ll-35&0892 en fiO Info@SunbeltRacks.com I ulww.SunbeltRach,com 37521 t{orlh 2llth St lPhoenir, AZ 851}E6

Consult. Dcsl$r o Gonrtarcl

tomers. With pre-arranged banking support and electronic visibility across the supply chain, trade payables or receivables may be extended or accelerated.

Summary

U.S. businesses suffered mightily during the longest and deepest recession since World War IL No industries have been hammered more than homebuilding, building materials, and banking. All are related

The "new normal" business recov-

ery will include an economy with slower growth and a forever changed banking climate. This warrants new approaches, and now is the time to start. As summarized in Figure 2 (above), a back-to-the-basics approach should focus first on internally generated cash. This better positions a company as a stronger candidate for financing.

Many new types of non-banking funding and cash generation solutions have evolved to meet today's conditions. Private equity and merger and

acquisition activity is improving. Savvy investors understand housing cycles. This will generate positive interest in, and options for, building materials firms.

- A longtime building materials industry executive, Robert L.Turner III is c.e.o. of Smart Profirability Solutions LLC ( wwru.s mart safe ty g ulfc oa st.com) and t he founder of Management Services & Associates LLC, providing middle-market firms with liquidity solutions Jbcused on generating working capital. Reach him at bo bt ur ne r @ msallc s it e .c om.

By Dave Kahle

Dontt jeopardize sales when personalities clash

f-\uesrroru: IN necRnos to personal\{i,y .confl icts with..an account. at wh-i point do you walk away and let someone else in your organization try?

Great question. Let me answer in two ways.

First, from a purely theoretical perspective, a professional salesperson should be able to build relationships with anyone, regardless of the personalities involved. So, from a theoretical point of view, the answer would be "never." It is the responsibility of the salesperson to figure out how to sell to every account, and every person within the account.

There are some selling situations where this "theoretical" position becomes part of the practical expectations for a salesperson. Large geographical territories, for example, don't allow for the option of letting

someone else try.

Having said that, let's recognize that there are very few salespeople in the world who are analytical enough, creative enough, motivated enough,

and flexible enough to figure out how to sell to every account.

So, we're back to your question. I don't think there has ever been any research on this, so my answer comes from my personal experience.

A large part of the answer depends on the company's position in the marketplace, their strategies, and the availability of a capable "someone else." For example, if you have a hot new product with a limited window of opportunity, that would shorten the amount of time that a company could wait for a sales person to successfully penetrate an account.

In a mature market. where competitors are jostling for business from one another, that could lengthen the time a company could wait.

The same is true for a capable option. If you have no capable person prepared to take over the account, the time frame expands. If you have a good person chomping at the bit, that influences your calculations in the opposite direction.

With all that said, my gut feeling is a year or two. It's going to take at least a good year to exhaust all the possible strategies for penetrating the account. And there is no use changing the account until the current salesperson has given it his/her best shot. So, at least a year, maybe two. If there is no progress at that point. nor any sign of imminent changes, it's time to make a change.

- Dave Kahle has trained tens of thousands of distributor and B-2-B salespeople and sales managers to be more ffic' tive in the 2lst Century economy. He's authored nine books, including his latest, How to Sell Anything to Anyone Anytime. Reach him at (800) 331 .1287 or via www.dav e kahlecom.

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FSG-certified Decking

Heppner Hardwoods now carries Cumaru decking from FSC-certified forests in Peru.

Sizes include 4/4x6" and 514x6" in lensths from 7' to l6'. Accessories can be custom manufaitured.

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LED Deck Lighting

New LED, low-voltage lighting from TimberTech brightens outdoor living areas.

The under-rail LED lights can be installed inside the top rail, between the balusters. Available colors are architectural bronze and coastal white.

In-Deck LED lights can be seamlessly installed in decking planks, and come in architectural bronze.

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A brand new &V#TEHPROOF ALTERHATIVffi to wooden Deck Joists, UNMAtChCd iN FLEXIBILITX NUffiAffiI$"NTY ANC STRENGTHI

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Expanding Selection of PVG Mouldings

Versatex has added six new profiles to its line of made-in-the U.S. cellular PVC mouldings.

Included are three windowtrim profiles (1-lI4"x4-3I4" window sill, l-516"x1-318" sill nose, l-314"x2-318" heavy sill nose), a 2"x318" garage door stop, and a l-l l8"xl5 132" beadboard capall in 16-ft. lengths-as well as a l-l I 4" x3" J-channel brickmould, in 18-ft. lengths.

All mouldings in the now 26profile collection resist moisture and insect damage, and match the color and gloss of other Versatex architectural elements.

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Hidden Fasteners for PVG Decking & Trim

Kleer Lumber now offers hidden fasteners for its cellular PVC trim and decking products.

The new line includes Cortex screws and plugs for trim and decking, plus KleenKlip stainless steel concealed fasteners for Kleer's grooved decking products.

When used together, builders can create a finished deck with no

Bio-Based Exterior Trims

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CAgiEAtrIA

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Natural Beauty and Exceptional Quality.

With [oscodio decking, the unsurposed noF urol beouty of Western Red Cedor is mokhed with Ierminol Forest Products' renowned monufociufng quolity. This aeotes o product thot is beoutiful, functionol, ond ecoJriendly. [oscodio decking is mode from o I 000/o renewoble ond su$oinoble North Americon resourre unlike PVC ond composite decking, which is lorgely mode from non-renewoble petroleum products. Ihird-porty life cyde onolysis deoily shows WRC decking os the best environmentol choice for decking: WRC significontly outperforms sustitute products in everv environmentol meosure.

LUMBER ASSOCIATION of California & Nevada hosted its annual PAC golf tournament April 12 at Black Gold Golf Club, Yorba Linda, Ca. [1] Brett Beloat, Al Reed, Greg Scott, Tim Hummel. [2] Oliver Barnes, Danny Andrea. [3] Steve Lawrence, Rick Deen. [4] Roger Knutson, Travis Knutson, Chad Barclay, Tom Barclay. [5] Ken Dunham, Doug Willis. [6] Jerry Romero, Angelo Cleffi. [7] Lynn Bethurum, Pete Meichtry, Rex Klopfer, Russ Primrose. [8] Andy Salazar, Jesus Viramontes. [9] Alan Schall, Chuck Casey. [10] Larry Christensen, Omar

Diaz. [11] Tim Kennedy, Bob Nagle. [12] Marc Spitz, Kevin Paldino. [13] Richard McArthur, Brian Hurdle. [14] Kim Wood, Gerry Merker. [15] Ken Lawless, John Assman. [16] John Wiesen, Jim Burns. [17] Paul Corso, John Allen. [18] Joe Allotta. [19] John Davis, John Pasqualetto, Mike Claborn, Craig Evan. [20] Scott Whitman, Terry Rasmussen, Keith Lyng, Scott Middaugh.

(More photos on next two pages)

MORE LACN GOLFERS bontinued from previous page): ['l] John Mayhew, Sergio Paz, Dave Vigil, Kelly Lyon. [2] Carlos Gonzalez, Ryan Mitchell, Greg Stout, Brad Satterfield. [3] Jake Brosterhous, Ron Hillman, Monika Bartko, Jay McArthur. [4] Mark Rommel, Chuck Brick. [5] Bart Weber, Dean Costello.

Bulldltg-hoducts"om

[6] Janett Deschenes, Erik Flick, Louis Rojas, Larry Kaelin. [7] Chris Freeman, Sam Sanregret, Chris Gerhard. [8] Karen Glover, Glenda DeFrange, Suzy Cleffi. [9] Jean

Henning, Sheryl McArthur, Charlene Valine. [10] Paul McCaughey, A.J. Jesiolowski. [11] Chris Thoman. (More photos on next page)

LACN GOLF (continued): [1] Joe Audette, Walter Frederick, Jeff Clave, Buzz Mann. [2] Dave Miller, Jon DeLangis, Natalie Allen, Nick Lan. [3] Jeff Norihiro, John Seely, Danny Sosa, Oscar Laddaga, Kurt Robbins. [4]

Michael O'Dell, Graziella Tenanova. [5] Rich Langton, Joe Bolton, Jon Hagen, Mark Huff. [6] Ryan Lauterborn, Gavin Monis, J.C. Lopez, Mike Walter. [7] Miguel Hernandez, Dan Croker, Neil Eibeler. [8] Tom Beall. [9] Mike Hacken. [10] Leslie Konsig, Barry Schneider. [11] Chris Bailey, Aly Kingsley. [12] Sheldon Doss, Mark Ganahl, Doreen Meeks, Pete Ganahl, Todd Petersen, David Hindmarsh,

Grant Pearsall. [13] Lovell Williams, chris Hedlund. [14] Jim Nicodemus, Tom Angel, Shannon Mott, Frank Bader. [15] David Higman, Dan Higman, Spencer Lacey, John Neel. [16] Alain Patton. [17] Gerry Perez, John Lopez, Johnny Pringle, Mike Kemp.

Update

Lumber Association of California & Nevada is polling members on the possibility of a name change, to one encompassing a greater geographic area and product mix, something along the lines of 'Pacific Lumber & Building Materials Association.'

LACN is also putting the finishing touches on its 15th annual Associates/ Dealers golf tournament June 7 at Rancho Solano, Fairfield, Ca.

Mountain States Lumber & Building Material Dealers Association is preparing for its annual WOOD Council golf tournament July 17 at The Ranch Golf & Country Club, Westminster, Co., followed by its annual Western Slope tourney Aug. l4 at Rifle Creek Golf Course. Rifle. Co.

Western Wood Products Association hosts a members-only summer meeting Aug. 15-16 in Portland, Or.

On the agenda are committee and board meetings, a guest speaker luncheon, and a wine tour.

Western Hardwood Association will hold its annual meetine Jtne 2223 in Sunriver, Or.

International Wood Products Association elected Warren Spitz, UCS Forest Group. Toronto. as president, succeeding Alan Mcllvain, Alan Mcllvain Co., Philadelphia, Pa.

Cindy Bergin, Newman Lumber, Gulfport, Ms., is now v.p. and Chris Connelly, Wood Brokerage International, Lake Oswego, Or., treasurer.

Joining them on the board are Geoff Doudera, Liberty Woods, Carlsbad, Ca.; Greg Simon, Far East American, Los Angeles, Ca.; Gregg Wilkinson, Bridgewell Resources, Tigard, Or.; Elizabeth Baldwin, Metropolitan Hardwood Flooring, Vancouver, B.C.; Craig Forester, Rex Lumber: John Hedin. Columbia Forest Products; David Weed, Robert Weed Plywood; Carl Gade, Penrod Co.; Livy Haskell, Lumber Liquidators; Paul Gates, Tradelink Wood Products; JoAnn Keller, Holland Southwest; Bronson Newburger, Clarke Veneers; Kenny MacMaster, Argo Fine Imports, and Hugh Reitz, PRS Guitars.

Pacific Lumber Inspection Bureau is holding its annual meeting June 22 in Coeur d'Alene. Id.

Redoak Hard Maple Soft Maple Cherry

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CTASSIFIED

Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished "camera-ready" (advertiser sets the type), $OS if we set type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month.

California Producers Get Boost to Promote Redwood

The California Redwood Co. and Humboldt Redwood Co. received a three-year $750,000 matching-fund grant from the Headwaters Fund to market redwood decking in California.

BOHNHOFF LUMBER CO. is seeking an Inside Salesperson and Yard Foreman. Salesman position: Fast-paced office, position requires self-motivation, ability to communicate well, teamwork, knowledge of the lumber industry. and phone/walk in cuslomer service.

Spanish/English speaking is preferred. Offers salary plus medical benefits. Yard Foreman position: prior yard foreman experience or manager experience, self-motivation, ability to communicate well, teamwork, knowledge of the lumber industry, walk-in customer service, delegating tasks, and know how to operate forklift. Spanish,/English speaking is preferred. Offers hourly plus medical benefits. Both positions are full time, Monday-Friday 7:30-4:00 in Vemon, Ca. Contact Christa Bohnhoff, (562) '706-',7227.

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"We're all marketing redwood for one of the highest and best uses, which is for decking," said Jacqueline Debets, economic development coordinator and project manager at Headwaters. "The goal is to increase the volume of redwood sales and thereby stop the loss of jobs in lumber manufacturing."

The campaign will highlight the benefits of redwood, compared to wood-plastic composites. "We haven't told our story," said Carl Shoenhofer, v.p. and general manager of the California Redwood Co. "We're all fighting over the same piece of pie. The opportunity here is to try to grow that pie. It's simply a matter of getting the facts out."

Epicor Gets More Mobile

Epicor Software Corp., Dublin, Ca., has unveiled new mobile and cloud-based solutions for the LBM market.

Mobile Manager works by transmitting business data from a Catalyst or ECS Pro system to the Epicor secure data center, where it is formatted for mobile access and made available to mobile devices. It delivers realtime information on Android or Apple smartphones and tablets that allows users to respond to customer inquiries, track the health of the business, and make informed decisions anytime and anywhere.

Hosted Solution delivers the robust functionality of the company's LBM software and hardware without the costs and problems of maintaining a computer infrastructure. Epicor's IT personnel perform all server maintenance. monitor server status. perform nightly backups, manage software updates, and handle disaster recovery.

Epicor Payment Exchange handles all the key steps in accepting card payments, including authorization, settlement,

DATE Book

flslings are often submifted months in advance. Always verif dates and locations wrth sponsor before making plans to attend.

Los Angeles Hardwood Lumberman's Club - May 10, ladies night, Orange Hill Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Southern California Hoo-Hoo Club - May 18, Don Gregson Memorial Golf Tournament, San Dimas Golf Club, San Dimas, Ca.; (760) 324-0842; www.hoohool 17.org.

Remodeling & Decorating Show - May 18-20, South Town Expo Center, Sandy, Ut.; (818) 57 1-9012,www.thehomeshow.com.

Remodeling & Decorating Show - May 19-20, Orange County Fair & Event Center, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com.

Do it Best Corp. - Iilay 19-21, spring market, Indiana Convention Center, Indianapolis, In. ; (260) 748-5300; www.doitbestcorp.com.

Kitchen Cabinet Manufacturers Association - May 20-23, annual convention, Williamsburg Lodge, Williamsburg, Va.; (703) 2641690; www.kcma.org.

Willamette Valley Hoo-Hoo Club - June 1, golf tournament, Shadow Hills Country Club, Junction City, Or.; (541)688-6675.

Composite Panel Association - June 3-5, spring meeting, Fontainebleau, Miami Beach, Fl.; (301) 670-0604; pbmdf.com.

Forest Products Society - June 3-5, "Forest Products: Solutions for a Global Green Economy," Washington, D.C,; (608) 231-1 361 ; www.forestprod.org.

Lumber Association of Galifornia & Nevada - June 7, associates/dealers golf tournament, Rancho Solano Golf Club, Fairfield, Ca.; (800) 266-4344: www.lumberassociation.org.

Forest Products Society - June 9-11, international convention, Omni Shoreham Hotel, Washington, D.C.; (608) 231-1 361 ; www.forestprod.org.

American Architectural Manufacturers Assn. - June 10-13, summer meeting, Maniot Oak Brook Hills, Oak Brook, ll.; (847) 303-5664; www.aamanet.org.

National Lawn & Garden Show -June 11-13, Embassy Suites, Frisco, Tx.; (888) 31 6-0226; www.nlgshow.com.

Los Angeles Hardwood Lumberman's Club - June 14, election night, Moreno's Mexican Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

National Retail Federation - June 20-22, loss prevention conference & expo, Ernest N. Morial Convention Center, New Orleans, La.; (800) 6734692; www.nrf.com.

Pacific Lumber Inspection Bureau - June 22, annual meeting, Coeur d'Alene, ld.; (253) 835-3344; www.plib.org.

Western Hardwood Association - June 22-23, annual meeting, Sunriver, Or.; (360) 835-1 600; www.westernhardwood.org.

Western Wood Preservers Institute - June 24-26, summer retreat, Ritz-Carlton, Bachelor Gulch, Avon, Co.; (800) 729-9663; www.wwpinstitute.com.

Western States Roofing Contractors Association - June 24-27, convention & expo, Paris-Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com.

PCBC - June 27-29, Moscone Center, San Francisco, 6s.; (800) 956-7469; www.pcbc.com

Mountain States Lumber & Building Material Dealers Association - July 17, WOOD Council golf tournament, Ranch Golf & Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.

Lumber Association of California & Nevada - July 19.20, 2nd Growth summer conference, Palm Desert, Ca.; (800) 266-4344; www.lumberassociation.org.

Southern Oregon Lumbermans Association - July 26-27, 50th anniversary golf tournament & BBQ, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.

Quolity Westem Cedqr Products

lx4 B0ARDS in 4, 5 ond 6' lengths

What better w&/ to thank both customers and vendors than hosting a free pancake breakfast, complete with sausage, coffee, and orange juice?

Every year, Mclendon Hardware, Renton, Wa., hosts a free breakfast on the first Saturday of May to kick off the chain's annual Anniversary Sale. The event also publicizes its annual Mother's Day plant sale.

When Bruce Stevens joined the company 2l years ago, to handle advertising and sales, each store in the chain hosted its own anniversary sale. It was his idea to coordinate the event with a free breakfast at each store and invite vendors to help underwrite the cost. In return, vendors get preferred placement in all sale announcements-printed circulars, plus TV, radio, and Internet ads-and preferred product placement during the sale.

"Our business is probably 9OVo retail and lOVo contractor," says Stevens. "That's why we don't just cater to contractors."

He added that financial support from vendors covers abott 70Vo of the cost of hosting the event. That's significant since more than 8900 breakfasts were served last year at the chain's six stores in Washington state. Although Mclendon provides tables and chairs, a catering company handles the cooking so employees can concentrate on sales.

This year's breakfast marks the 86th anniversary of Mclendon's, which plans to open a seventh location, in Tacoma, as soon as a newly purchased property can be remodeled. The company also operates two DCs.

For more information on advertisers, call them directly or visit their websites [in bracketsl,

Advantage Trim & Lumber [www.advantagelumber.com],..,............54

AERT [www,aertinc,com]

Ainsworth [www.ainsworth.ca]..................... .......26-27

Allweather Wood [www.allweathenrood.com].........................Cover lll

Atlantis Rail Systems [www.atlantisrail.com]

Bear Forest Products [www.bearfp.com] ...........................................51

Big Greek Lumber Co, [www.big-creek.com]

Blue Book Services [www.lumberbluebook.com] .............................36

Boise Cascade [vrvw.bcewp.com]..............,..,...............,,...,..,............45

BW Creative Wood [www.bwcreativewood.com]...............................32

Cabot [www.cabotfactoryfinish.com].,,,,,..............................................7

California Redwood Co., The [www.californiaredwoodco,com]....,....3

California Timberline [www.caltimberline.com]...................................4

Canfor [www.canfor.com] ...................................23

Capital [www,capital-lumber.com] 57,59

Golumbia Cedar [www.columbiacedar.coml.............,,.,.........,,,Cover ll Distribution Management Systems Inc. [www.dmsi.com] ..,.............41

Eco Chemical [www,ecochemica1.com]..............................................30

Enduris [wwuenduris.com]..........,..,...,..... .,.............39

Fontana Wholesale Lumber [wv*v.fontanawholesalelumber.com]..55

GRK Fasteners [www.grkfasteners.com] .................21

Hoover Treated Wood Products [www.frtw.com] ..............................29

Huff Lumber

Humboldt Redwood Co. [www.getredwood.com]....................Gover lll

ldaho Forest Group [www.idahoforestgroup.coml...........,..,.......,.....43

lpe Glip Co., The [www.ipeclip.com] ...................................................31

J.M. Thomas Forest Products [wwuthomasforest.com],...,....,,,,.....54

Keller Lumber Co. ....................... ...............................61

Mary's River Lumber [www.marysriverlumber.coml,........................40

McFarland Cascade [www.mcfarlandcascade.com]....................,.....17

Mount Storm Forest Products [www.mountstorm.com] ...................59

Norman Distribution Inc. [www.normandist.com] .............................55

North American Wholesale Lumber Assn. [www.nawla.orgl............37

Pennsylvania Lumbermens Mutual Insurance [www,plmins.com] ..47

Redwood Emphe [www.redwoodemp.com]......................,..,,............35

Roseburg Forest Products [www.rfpco.com!..................,..,...,......,..,.11

RoyOilarlin [www.royomartin.com],.........,.... ............8

Screw Products [www.screw-products.com]

Simpson Strong-Tie [www.strongtie,com]

Siskiyou Forest Products [www.siskiyouforestproducts.com]......,.49

Straight Line Transport [www.straight line-transport.com]..............15

Sunbelt [www.sunbeltracks.com].............. ...............50

Swanson Group Sales Co. [www.swansongroupinc.com].....Cover lV

Thunderbolt Wood Treating [thunderboltwoodtreating.coml...........6l

Tige0eck [www.tigerdeck.com] .............,...,.............52

TMI Forest Products [www.tubafor.com]............................................48

Viance [www.treatedwood.com] .....,,,...,..,...,....Cover I

Wahoo Decks [www.wahoodecks.com],......,.........,.........,..................53

Yakama Forest Products [www,yakama-forest.com] ......,..,..............44 &rildlryrftodudrom

DURING THE ANNUAL event, customers can spin a prize wheel to win products donated by vendors.

My customer wanb a deck made for peaceful rslaxation and fiiendly gath€rings. Plastic lumb€r? I don't think so. I want to male sur€ this dmk is suong and durable with natural warmth, beauty, and lasting character. RnO I eare about the envircnment and so does my customer. ttrat's wny tnis

*:*|s gnlng !o be buih wtth FSCG certified sustainable Humboldt Redwood.

4S,u#t! lt com€$ to Sucturel support, I choose FSC chain-of.eustody certifled Allweather Wood pressure-treated lumber for long-lastlng reslstance to tannitss, rot and decay. Humboldt Redwood and Altweather Wood, for me and my customers it's an unbeatable oombinatlon. l

Don't.your

contractors deserve the best of both woods?