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Fox Contests OSHA Citations

Fox Lumber Sales Inc., Hamilton, Mt., intends to appeal 25 alleged safety and health citations handed down by OSHA after an inspection of Fox's Laurel. Mt.. mill.

OSHA's investigation late last year reportedly followed rwo amputation accidents at the facility. The violations could result in $120,000 in fines.

The I I "serious" citations, totalling $33,200 in proposed penalries, include lack of emergency lighting, inadequate machine guarding, inadequate training on operating woodworking machinery, inadequate use of personal protective equipment, use of unsafe forklifts, and unguarded belts and pulleys.

The l2 "repeat" violations, with proposed fines of $86,800, cite unsafe noise levels, inadequate training on lock-out/tag-out procedures, inadequate machine guarding, unsafe electrical hazards, inadequate forklift training, and blocked or unmarked exits.

Stock Purchases Efficient

Stock Building Supply has acquired four Las Vegas, Nv., companiesEfficient Electric, United Electric, United Plumbing, and DSI Inc.-from Steve Menzies.

"The acquisition of Efficient gives us expertise in electrical and plumbing installation and complements our turnkey framing construction services in the Las Vegas market. rvhich has been one of the top l0 housing markets in the U.S. for several years," said Fenton Hord, Stock president and c.e.o.

Efficient Electric and United Electric are installers of electrical services for residential projects: United Plumbing an installer of plumbing services, and DSI Inc.. a supply house providing electrical products to Efficient and other electrical installers.

The purchase of Efficient. rvhich recorded sales in 2005 of $94.1 million, adds 917 associates to Stock. The current management team. including Menzies, will remain rvith the company.

Raleigh, N.C.-based Stock norv operates 290 locations in 33 states. with reported sales of $4.1 bitlion in fiscal 2005.

Milling A $45 Billion Business

The lumber and plywood manufacturing industry in the U.S. consists of about 5.500 companies rvith combined annual revenues of $45 billion. according to a new study by Research & Markets.

The industry includes the manufac- turing divisions of huge timber conglomerates such as Weyerhaeuser. Louisiana Pacific. and GeorgiaPacific. several hundred companies rvith annual revenues over $20 million. and a large number of singleoperation companies rvith annual revenues under $5 million.

The industry is highly fragmented in the sarvmill segment. rvhere the 20 largest companies hold only a 36Vc share of the market. but highly concentrated in the plyrvood segment. rvith the top 20 companies holding more than 857c of the market.

Sarvmills are located close to their source of rarv material because of the high costs of transporting rarv timber. Local mills can often compete successfully rvith those of large companies because they can efficiently serve a local market.

Horvever. there are big economies of scale in sarvmill operations. Large mills can have annual revenue per employee of close to $300,000. rvhile small mills may achieve only half as much. Sarvmills can operate rvith only a modest investment of capital. but plyrvood mills require expensive equipment and. therefore. are usually large plants rvith high annual volume that service a rvide geographic area.