Merchant Magazine - July 2008

Senting dealcrs, wbolcsalcrs, exporterq and lnme centers, Allweather Wood, UC offers tbe best aafue ln treated wood products by prutiding a hrge selectlon of species and treatnents at a conpetltlae price. At our uariousfrcilities we stoch tbe most ffictlue and emti.runmmW senstthn presennd wood ptoducts auailablB. Tlnse incfude Hi-bor', NatureVo& , and 13. We alsoptttide tnterlorfirc retardant wdprchrc*.AtAllweatber we pruide oilt castomers witb on-time deliaery, ITL shipmmts, expeilenced salcs professionab, and marheting sapport. Suali$, aahrc, selection, and seruice mahe Allweatber Vood, ItrC a cut abue the cotnptition.

The remarkable strength and consistency of LP@ SolidStart@ Laminated Strand Lumber delivers real advantages on the job site. Strength up to 1.75E means it can handle far longer spans than ordinary lumbeq, so there's no need to spend extra time and materials building up headers or beams. LP SolidStart LSL resists twisting, warping, cuppilrg and shrinking. And it's backed by a Lifetime LimitedWarrants Build smart. with tP SolidStart LSL.,,

CASC1DE

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Sowlng l3 Ucatam tLt.r, lncludlng Alask .nd llawall

(SistP,r publication guilding Pr1ducE Digest seiles the East)

PUBLISHER Alan 0akes (ajoakes@aol.com)

PUBIISHER EMERITUS David Cutler

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Dwight Cunan, Carla Waldemar, Roy Burleson

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What makes a best-tuh business?

In my own past lives, as regular readers of this column have learned, I was often embarrassed at how some of the businesses I worked for were run, including, sad to say, a couple of businesses where I was the c.e.o.

It is not easy to be a top manager in any size corporation, particularly in our industry right now. We often are led to do things that our board, shareholders, or other top management push on us; pressure to perform is high. But I find more and more that common sense gets thrown out of the window in today's corporations. Very few companies know how to be a bestrun business.

I enjoyed an ad currently being run by Southwest Airlines that shows a cut-out coupon reading, "Don't #$*l7o me over. Accepted only by Southwest Airlines." No checked bag fee, no change fee, no fuel surcharges, no aisle or window seat fees, no phone reservation fee, etc. You get the point. When conditions become dire, some companies make the wrong decisions. (Some never make the right decisions when times are great, either.)

You have to ask yourself who raised their hands at the meeting at one of our largest airlines and agreed to charge a fee for all bags checked in. I can imagine them all clapping like sealsanother $ 1 5-per-passenger yum-yum. Or the airline that decided that they would charge extra for an aisle seat. Or the airline that stopped passing out those ghastly snacks. And,

just as I predicted, the airline that has just begun charging $2 a pop for soda.

I understand their current predicament, but these type of decisions are short sighted and just plain dumb. You fool a customer only once; they go elsewhere when they discover that you cheated them by hiding the real cost ofthe ticket.

Best-run businesses understand that customers are at the heart of the process, top of the mind, to be valued and not be at the end of the pipeline. Nickel and diming them is not the way to their heart. I understand only too well the times we are in right now, but I see too many short-sighted decisions that can only over time come back to bite your rear end off and erode hardeamed loyalty with good customers.

In tough times, best-run businesses know how to hunker down but at the same time expand. Yes, you may have to make cuts, but what then? You have still got to find ways to maneuver the company in a positive way to provide a future. That starts with being open to new ideas both from within and outside the company. Indeed best-run companies have the ability to take their leadership position in one market segment or industry and make those same ideas work in a completely different business.

I remember being pulled aside by the owner of one of my employers 20 years ago after I asked a leading trade buyer what ideas he had for our company. "Alan, that was a mistake. We

should know our direction and we should be telling them what we will be doing." The one thing I have learned is that at times we become blinded by our own greatness or our own problems. I often learn as much or more from outsiders. The results of my question to the buyer were two new product lines, one of which proved quite successful.

So we need to be open to new ideas from all sources-inside and outside our company, and even outside our industry. I am constantly scanning what others are doing-each month I read some 30 to 40 magazines, of all types. I listen a lot, and I learn as much about what not to do as what to do. I am always trying to find new ways of doing things and hitting industry shifts at the right time. Being insular is one of the greatest barriers to success. However, I would also agree that change for change's sake is also expensive and debilitating to a company's health.

The big winners are those who can see a market before it becomes a market. The ability to see four to five steps ahead is one of the best management skills you can have. Be able to move your company fast and hit the ground running. Be prepared to change course when you hit a crossroad, by monitoring and measuring each step along the way. Simple, but many do not know how to do that.

Today's brutal environment is perhaps the perfect time to take a deep breath and look to see how we might be a best-run business.

Lastly, best-run businesses keep things in perspective. I just returned from Europe, where at $8.50 a gallon, gas prices are double ours. Consider that we pay what equates to about $8 a gallon for that small bottle of water and $1.50 for that 10-oz. coffee. We better get used to it and start doing something about it. The impact of emerging economies such as China and India are only just being felt, and it is perhaps the tip of the iceberg.

fhe end of fhe lunnel

Rerouery mily he in sight

By John Krier JLK Global

the rate of sales as the denominator, the message becomes distorted. If the month's new home inventory figures rise, that does not necessarily mean that actual inventory is rising.

The point is that single family homebuilders have found a level of production that is sustainable. In other words, a bottom. This in turn enables the market (as opposed to individual sawmills) and its "invisible hand" to find a production level that will move prices higher. I am convinced we are seeing evidence of this right now.

[r VERY day I talk to a number of people who are in the I-ttimber business in many different capacities. But the message is always the same: doom and gloom, lamenting, hand wringing, etc.

Those of you who are acquainted with me either personally or through my writing and speaking know that I have been a bear since 2005. Last fall I made a forecast in several speeches of 1.1 million housing starts, even though the "consensus" forecast was 1.4. When the situation deteriorated even further, I changed to 950,000 in my last article for The Merchant (see February, page 11). So I am no Pollyanna. I will match my bearish credentials with all comers. But as with all bear markets, there is a time to move on and look for signs of recovery.

Several weeks ago I saw the first glimmerings in a Wall Street Journal article bearing the unfortunate title "The Housing Crisis is Over." I hasten to say I do not agree with that sentiment. Titles do matter, and a number of my industry colleagues dismissed the ideas in the article. One even made it the subject of his monthly newsletter. But they missed my point.

Buried within the article was a statistic that caught my attention. New home inventories have actually fallen by 100,000 units in real terms over the last nine months. Since the most commonly read headline number is a ratio with

When demand is falling, it is a moving target and calculating levels of production to match it is like "catching a falling knife." As mills reduce and curtail, demand falls again, forcing them into another cycle of rethink and redo. It is not easy to lay people off once, let alone over and over again. But a few months or quarters of stable demand, no matter how low, allows them to catch the knife and target a volume that sells. We have already seen the early indications of this transition in the May-June rally, which is the first in a long, long time to last for weeks as opposed to days.

Does this mean our troubles are over? Of course not. Besides inventories, the overhanging risk is now multifamily. While developers are busily building new apartment complexes, they cannot ignore the danger of the huge volume of existing unsold houses and condominiums that will be reverting to rentals in large numbers over the next few quarters. Rents are already showing some strain and multi-unit builder confidence is falling.

Year-to-date housing figures have been hovering around the I million mark because of a strong multi-family component. These figures will start to drop soon and slide downward for the rest of 2008. As these projects are planned and financed years in advance, the fall will not be precipitous but it will be nasty.

The large banks seem to have muddled their way through the worst of the liquidity crisis, but the local and

(Please turn to page 52)

Are borates the o miracle preservative?

[tOUR years ago. CCA-treated I-' wood had just disappeared from residential applications. Copper-based

preservatives were angling to become the heir apparent. Yet the markel noted their higher cost and corrosive-

Borates: Perception vs. Reality

By Vince Opaskar Quality Borate Co., Cleveland, Oh.

There are two realities that govern the usage of borates in pressure ffeated wood: the common perception and the legal rule. Unfortunately, the legal rule trumps the perception.

The common perception amongst the public is that borates quickly get "washed out" from the wood in a little bit of rain. Because of this, the rules for use of borate treated wood restrict the usage category to UC2 level. The UC2 level of usage is defined by the American Wood Preservation Association as "above ground, interior construction, damp (conditions)." By definition, since there is no flowing water running over the borate-treated wood, there will be no losses of borates.

Again, by definition, the content of borate must be above either 0.17 or 0.28 lbs/cu. ft. for Non-Formosan/Formosan termites, respectively.

The AWPA leaching test, Ell06, uses treated wood cube block samples, 0.75 inches on a side, and submerges them under water while stirring the water for 14 days. This is a pretty rigorous test. It is no surprise that borates do not survive the test and still conform to the loading levels cited above. Thus. thev are

assigned to indoor, essentially dry conditions of usage. Then again, better to err on the side that protects the consumer, even though the test is a lab test that in no way represents the real world.

In a recent paper presented last year by Mark Manning of USB/Rio Tinto, mini-bundles of 2x4s (four high and four across) were subjected to 12" of rainfall with three types of rain/soaking cycles. Anywhere from t5Vo to 377o of the borate content was. in fact, leached out. Again, a good test but not the real world of house construction.

A large chunk of wood goes into common house outside decking. Borate treated wood will not work in this application (Usage category uc3).

The closest application is log homes. The logs are borate treated and the warranty states that the logs must be coated every year to keep the warranty in effect. The added coating prevents the borate leaching.

If the wood is pressure treated up to the cited loading levels, and used in interior dry applications, it will be warranted by the treater for 30+ years. If the borate never leaves the wood. it could be eood for 100+ years!

ness to fasteners.

What dealers and treaters really seemed to want was a preservative with the price and performance of CCA, but one that could be deemed environmentally friendly.

Some in the industry argued there did exist such a perfect preservativeborates. The chemical was supposedly so non-toxic, you could drink it.

"Most people in the industry will agree that borates are the best way to treat wood in the world," says Jack Rombough, general manager of EnviroSafe+, which got its start in 2000 as EnviroSafe Wood Treatment Products LLC, Fort Myers, Fl., intent on mainstreaming borates.

Borate treatments' archilles heel, however, is that they are solublethey can leach out of wood when sub-

SILL PLATES remain the top application lor borate-treated wood, particularly in Hawaii, where to protect against Formosan termites, building codes require that all framing and sheathing be treated.

Photo bv Arch Wood Prctection

jected to water. And so began a mad dash by chemical companies to develop a binder that could prevent borates from leaching.

"There were attempts to develop a borate-based formula with a wider end use application," recalls Rick Danielson, Allweather Wood Treaters, Washougal, Wa. "Attempts were made to encapsulate the borate in wood using sodium silicate to reduce its exposure to conditions that would leach the borate. Cost considerations to install equipment at the production level and increased treatment costs seem to be some reasons that this 'miracle borate' did not advance within the industry."

In addition, the industry learned that permanently locking borates into wood wasn't necessarily a good thing. "If borates stop migrating, they stop killing the fungi and insects," says Rombough. "Borates don't kill on contact, like spraying on a can of Raid. They act as a drying agent; they dry out the insides of an insect so it can't eat any more."

"If you fix borates permanently in the wood, experience has shown us that the wood preservative will not be effective," agrees Dick Jackson, president of Pacific Wood Preserving Cos.. Bakersfield. Ca. "The borate needs to be mobile in the wood in order for it to be efficacious against decay and termites. It may be possible to develop a semi-fixed borate where the diffusion process is greatly slowed down. So far, no developer of this style of borate wood preservative has opted to commercialize it, however."

While its solubility may prevent borates from becoming an all-purpose super-treatment, "that same characteristic of preservative mobility also helps borates diffuse throughout the wood after treatment to effectively serve its protective purpose," says Danielson. "The end use of the product is quite specific and limited: a service condition in above-ground applications that is protected from continued exposure to water."

Indeed, above-ground, weatherprotected applications are suggested by the majority of companies that sell borates, including leading producer Osmose and even Bluwood, one of the firms that developed a waterrepellent additive to deter moisture absorption.

In addition to framing and sheathing, EnviroSafe+ is sold for exposed, above-ground uses, such as decking,

fencing, siding, and playground equipment.

But Rombough confesses, "It's not the holy grail. We cannot keep borates in wood forever. We retard the leaching of borates to the extent where [the wood] becomes a useful product. The main ingredients of our polymer binder are meant to link up with DOT borates to make them more effective."

EnviroSafe+ offers a 40-year transferrable warranty. Still, Rombough admits, "in a very, very wet situation, you have a problem. That said, in five years. we have not had a major issue of failure. And, even if it leaches, it will not harm sunoundines. Boron is

used in fertilizer, so it makes lawns green."

Allweather's Danielson thinks borates have remained a minor player for a reason. "While some may think that a non-leaching borate would be a 'miracle' wood preservative. it doesn't appear that the major preservative manufacturers are spending their R&D dollars to pursue that technology," he surmises. "Clearly the trend seems focused on carbon-based preservatives or micronized technology of known decay preventative components. From my perspective, borates have a limited, but very effective use, and seem likely to remain in that catesorv."

ENVIROSAFE+ two-step borate-treatment is commonly used on outdoor products, including cedar fencing (above) and decking.

Double up Borate treater adds fire resistance

NEW tire inhibiting additive .6.offered

A

by SC Bluwood. Carlsbad, Ca., is protecting new houses in an area hit by wildfires last fall.

Named AF21, the additive was developed by a Florida company named WoodSmart Solutions-which also developed Bluwood, a boratebased treatment that protects wood products against termites and mold.

"As of June 2008. SC Bluwood is the first licensee to offer the AF21 blend to the public," said co-owner Mark Vuozzo. He and Steve Conboy launched the company in 2003.

Today, they have a treating plant in Colton, Ca., an exclusive license to market WoodSmart coatings throughout the West, and $10 million in annual sales. "There are so many manufacturers that go into a house, and you have to serve all of them," said Conboy.

According to industry estimates,

termites cause $l-2 billion in damage to U.S. homes each year and insurers have paid more than $3 billion in mold-related claims in recent years. Fire damages cost even more, accounting for $17 billion to $21 billion in property losses in recent years.

WoodSmart has performed thirdparty testing of Douglas fir and hemfir lumber treated with the AF21lBluwood solution. Test results reportedly indicated Class A fire ratings per ASTM E84-01b, the standard test method for surface burning characteristics of materials. Other species of wood are now undergoing testing.

According to WoodSmart, the fire inhibitor is locked into wood products by Bluwood's moisture barrier and will not wash off. The additive is also non-toxic, non-corrosive, biodegradeable, and environmentally friendlyas is Bluwood.

The first home to be protected by AF2l is a rebuild in Rancho Bernardo, which was hard hit by last October's Witch Creek-Guejito fire. Homeowner Ken Baker, a retired contractor, contacted SC Bluwood during his search for fire-resistive building materials.

Baker's new home is now being built with such fire-resistive materials as Bluwood/AFc2l framing lumber, cellulose insulation, and Pyrocrete-a stucco material mainly used in commercial applications. He has also persuaded several of his neighbors to rebuild with these materials.

"The opportunity to assist Ken Baker with rebuilding his home has been a wonderful experience," said Steve Conboy. "I know that Bluwood with AF21 is a revolutionary product, but being able to give homeowners peace of mind is phenomenal."

WORKDIG TOGETHER, retired contractor Ken Baker and SC Bluwood's Sleve Conboy are protecting Bakeis new home against termites, mold and fire with Bluwood wood treatment with AF21 fire resistive additive.

BAKER HOME in Rancho Bernardo. Ca.. was destroyed by wildfires last fall.

Forklift safety?

A N effective forklift .Cl,safety program requires employer and worker compliance with OSHA regulations, consensus standards, and equipment maintenance. Lumberyards can increase forklift safety awareness, encourage safe practices, and prevent forklift accident by creating their own safety checklists, similar to those provided by The Hartford:

Employers' Safety Checklist

Make sure that workers do not operate a forklift unless they have been trained and licensed.

Develop, implement and enforce a comprehensive written safety program that includes worker training, operator licensure, and a timetable for reviewing and revising the program.

Establish a vehicle inspection and maintenance program.

Ensure that operator restraint systems are being used. Retrofit old sir down type forklifts with an operator restraint system if possible.

Separate forklift traffic and other workers where possible.

. Limit some aisles to "workers on foot only" or "forklifts only."

. Restrict the use of forklifts near time clocks, break rooms, cafeterias and main exits, particularly when the flow of workers on foot is at a peak (such as the end of a shift or during breaks).

. Install physical barriers where practical to ensure that workstations are isolated from aisles traveled by forklifts.

. Evaluate intersections and other blind corners to determine whether overhead dome mirrors could improve

the visibility of forklift operators or workers on foot.

Make every effort to alert workers when a forklift is nearby. Use horns, audible backup alarms, and flashing lights to warn workers and other forklift operators in the area. Flashing lights are especially important in areas where the ambient noise level is high.

. Ensure that workplace safety inspections are routinely conducted by a person who can identify hazards and conditions that are dangerous to workers and who has the authority to implement prompt corrective measures.

. Install workstations, control panels, and equipment away from aisles when possible. Do not store bins, racks or other materials at corners, intersections or other locations that obstruct the view of operators or workers at workstations.

Enforce safe driving practices such as obeying speed limits, stopping at stop signs, and slowing down and blowing the horn at intersections.

Repair and maintain cracks, crumbling edges, and other defects on loading docks, aisles and other operating surfaces.

Workers' Safety Checklist

. Do not operate a forklift unless you have been trained and licensed. Use seatbelts if they are available.

and lean in the overturn.

Report any damage or problems that occur with a forklift during your shift to your supervisor.

Do not jump from an overturning, sitdown type forklift. Stay with the truck if lateral or longitudinal tipover occurs. Hold on firmly the opposite direction of

. Use extreme caution on grades, ramps or inclines. Normally you should travel only straight up and down.

Do not raise or lower the forks while the forklift is moving.

Do not handle loads that are heavier than the rated weight capacity of the forklift.

. Operate the forklift at a speed that will permit it to be stopped safely. Slow down and sound the horn at intersections and other locations where vision is obstructed.

. Look toward the path of travel and keep a clear view ofit.

Do not allow passengers to ride on forklift trucks unless a seat is provided.

. When dismounting from a forklift, always set the parking brake, lower the forks, and neutralize the controls.

Do not drive up to anyone standing in front of a bench or other fixed object.

. Do not use a forklift to elevate workers who are standing on the forks. Use a restraining means such as rails, chains or a body belt with a lanyard or deceleration device for the person(s) on the platform.

Do not drive to another location with the work platform elevated.

EWPs go Gommercial

Glulam remain popular despite slump in wood product demand

THE wood products industry has seen plenty of bad I news of late, as lumber and engineered wood demand continue to decline due to the housing slump. However, field reports show a slim rainbow of good news for wholesalers and retailers who specialize in commercial and institutional construction.

Industry analysts predict that housing starts may decline another 140,000 units this year, following the 300,000 drop in 2001 . Even so, demand for glued laminated timber is stronger than other engineered wood in many areas.

Troy Ford, product manager for Boise Cascade, agrees that glulam has not declined as much as some other engineered wood, including I-joists and LVL.

The growing availability of pressure treated glulam has also helped strengthen market demand. Many orders specify rough sawn or special finish glulams.

"ln addition to stock beams for headers, roof and floor beams, we are seeing orders for architectural appearance grades such as curved compound radius timbers," Ford adds. Custom glulams are also widely specified for condos and multi-family units.

Boise emphasizes commercial glulams at many of their customer events, such as barbecues, contractor nights, and golf outings.

Terry Melzer, Cudahy Lumber, Portland, Or., reports that although glulam timber demand is down, it continues to have strength in the overall engineered wood market. Melzer says this is because glulam is increasingly regarded as superior to solid sawn wood.

Melzer adds that glulam is outperforming other engineered wood as well as steel framing, which often has an "industrial" look.

"We're seeing more of our glulam sales going into nonresidential, especially Lock-Deck," he says, referring to the laminated roof decking produced at Disdero Lumber's plant in Chehalis, Wa.

Gunnar Brinck, Disdero's vice president of Lock-Deck, says their sales volume has been fairly level because they focus on wholesalers who serve pro dealers supplying churches, schools, retail stores, offices and other non-residential construction.

Many architects who design commercial buildings like the strength, economy and aesthetic warmth of glulam decking.

Plywood Supply, Kenmore, Wa., agrees that while residential tract builders are hurting, the market for engineered wood is steadier in condos, multi-family, and custom homes.

Mike Warnek, Matheus Lumber, Seattle, Wa., says glulam has increased its share of the engineered wood market for headers, floor and roof beams as well as exposed ridge beams. Warnek believes that lenders have made a negative impact on the single family home market and that a recovery will partly depend on the apartment vacancy rate.

The Alamco Company name has been synonymous with glulam quality across the Midwest and East for 70 years. The Albert Lea, Mn.-based company's original name was Rilco, when it supplied hundreds of equestrian and dairy barns throughout the upper mid-section of the country, and later became a branch of Weyerhaeuser before taking on the name Alamco.

John Forman, company manager, says that churches, hotels, water parks, and other commercial structures are its primary targets these days. They have also diversified into poles and electrical transmission towers.

"There is a new opportunity in church construction because of slulam's warm aesthetics. which make dramatic

DEALERS and wholesalers are spending more sales time selling glulam timbers to light commercial/institutional construction projects, which have remained more active than tract housino.

interiors," Forman says. "Many churches, especially the Catholic faith, are merging into one new building because of the shortage of priests."

Beverley Gilmore of US Glulam, a long-time engineered wood wholesaler serving the Chicago area, says the commercial/institutional market is different from residential because more specifiers are involved in selecting building materials.

Gilmore says their 600-plus retailer and industrial customers pay increasing attention to the non-residential market. "Al1 types of engineered wood are down, but large glulam trusses and post and beam construction are holding their own better than other engineered wood," he says.

US Glulam representatives join their dealer customers in making sales calls on engineers and architects and tailor their website to these specifiers as well.

The company is seeing increased orders for Lock-Deck and other brands of laminated decking, particularly 3x6 for post and beam second homes. Most of the 4x6 and 5x6 deck go into commercial jobs.

What's also helped glulam's steady numbers is that the tight market for residential builders has caused many dealers to spend more sales time and direct mail to reach architects, engineers and contractors.

Engineered wood distributor Huttig Building Products, Phoenix, Az., has also upped its contacts to commercial building specifiers. "To succeed in this tight market, you have to move beyond traditional single fam- ily residential jobs," says Don Lamberton. "Our representatives call on dealer customers to promote glulam, I-joists and LVL, and we have value-added workshops for dealers."

Even though tract building is down substantially, glulam framing maintains a solid position in multi-family, custom homes, and commercial jobs, Lamberton notes.

One advantage of glulam is its availability in architectural grades, which are specified for exposed ridge beams in cathedral ceilings as well as rough sawn surfaces and special finishes.

Trend Toward EWP

Glued laminated timbers are a stress-rated engineered wood product comprised of wood laminations, or "lams," bonded together with strong, waterproof adhesive. This means that

no large, old-growth trees are needed in the fabrication of the beams.

About 307o of all glulam beams and trusses manufactured in the U.S. are used in commercial and institutional construction, a sizeable increase over the past five years, according to the American Institute of Timber Construction.

Glued laminated wood arches, beams and trusses are also a renewable resource, because U.S. foresters plant five million trees each day to insure a future supply of wood. This contrasts with steel and concrete, which deplete natural resources.

A major reason why glulam timbers and decking are a force in the market is that the furring, sheathing and finishing often required with steel framing can be eliminated with glulam construction.

Also, when glulam materials arrive at the jobsite prefinished, the delivered product is the finished product. This makes glulam unique as a structural component for many kinds of buildings. Other types of framing members arrive on site in raw form and require additional cladding to create the final product.

Architects find that a dramatic, exposed timber ceiling combines

economy with warm aesthetics. It also avoids the need for fire protection wrapping, which would be required for steel construction.

- For more information on laminated timbers, contact the American Institute of Timber Construction, 7012 S. Revere Pkwy., #140 Centennial, Co.80l l2; (303) 792 9 5 59 ; www.aitc - glulam.org.

LAMINATED roof deck ceilings are frequently specified with glulam ridge beams and are widely used in upscale custom homes and light commercial construction.

llistrihutors must auoid

inuestment muopla

By Albert D. Bates Profit Planning Group

EIOR most o[ the last decade. dis.|-' tributors have taken a strong cashflow orientation to their operations. The rallying cry has been "Profit is fine, but cash is king." There is now strong evidence that the king is in exile.

A proponent of the cash-flow perspective would argue that both inventory and accounts receivable are cash traps that must be drained. However, reducing these onerous investment factors has the potential to lower sales volume. Let's examine the implications of lowerins the investment in

inventory and accounts receivable, from two different perspectives:

. The Investment Versus Sales Trade-off: An examination of how investment reduction programs have the potential to either increase or decrease profitability.

. Having Cake and Eating It Too: A review of the opportunities for investment reduction that can be undertaken without riskins sales decline.

Ihe lnuestment us. Sales Trade-0ff

To understand how investment and

The lmpact of Inuentory E Accounts Beceiuable Reductions on Total Gompany Profits

sales reductions work their way through the business, it is necessary to have a precise understanding of the financial structure of firms in the industry. The chart at lower left provides financial results for a representative distribution firm.

This typical firm generates $40 million in sales volume, operates on a gross margin of 2O7o of sales and produces a pre-tax profit of $1.2 million or 3Vo of sales. The firm is also assumed to have variable expenses (commission and the like) of 47o of sales.

The key investment issue is that the firm requires $12 million in total assets in order to generate this level of sales and profit. Of this amount. $5.5 million is in inventory and $5.1 million is in accounts receivable. These results are shown in the first column of the exhibit.

The second and third columns examine the impact of an investment reduction, but do so under very different circumstances. The second column assumes that both inventory and accounts receivable can be reduced without impacting sales volume. The final column looks at the consequences of an investment reduction that result in a modest sales decline.

In both of the "what if' columns the investment in inventory and accounts receivable has been reduced by l0%.It is also assumed that the cost of carrying inventory and accounts receivable is around 2OVo. That is, for every dollar of investment reduction, profits would increase by 20 cents due to less interest, a reduction in insurance on inventorv. fewer bad debts, and the like.

A 20Vo factor for inventory is about what most inventory consultants suggest should be used for inventory. For accounts receivable, a 20Vo factor overstates the carrying costs by a large extent since the only carrying cost items are interest and bad debts. Consequently, the cost reduction factors in the exhibit are slightly over-stating the profit impact of an investment reduction.

As can be seen, if there is no sales decline, the cost reduction (line item "Reduction in Carrying Costs" in the exhibit) is significant. Costs decline and profits increase by $212,000. At the same time, the reduction in investment is also significant. When the investment reduction and the profit improvement are combined, ROA increases sharply, from lOTo to l2.9%o.

The problem in distribution is that investment reductions are almost always associated with reductions in sales activity. This is due to out-ofstock conditions on inventory and the reluctance to provide credit to marginal customers on accounts receivable.

In the final column of the exhibit, it is assumed that sales decline by 107o. This is not meant to imply that a l07o investment reduction will automatically result in a l07o sales decline. It is merely a pro forma set of results. The actual sales decline may be more or less than 107o.

In any event, the sales decline destroys the financial structure of the firm. With a sales decline, it is impossible to shed fixed expenses. The result is that profit declines from $1.2 million to $772,000. Even though the asset investment is reduced. ROA actually falls from l}Vo to 7 .|Vo. Simply put, sales are much more important than investment levels in determining the financial success of the firm for BSA members.

This profit impact of "sales not made" is not well understood as traditional information systems simply can't provide pro forma income statements that add back sales that were lost. Since the profit impact of investment reductions are highly visible and those of lost sales are not, there is a natural tendency to move toward an investment reduction approach.

Hauing Gake and Eating lt loo

Few distributors have as much cash as they desire. The instinctive reaction is to lower investment levels.

However, such actions are likely to lower profits, which make the investment challenge that much harder. There are two solutions to this challenge-drive profits higher or eliminate marginal investments.

Driving Profits Higher: For most firms it is absolutely essential to place more emphasis on increasing profits and less on lowering investment levels. This means avoiding investment myopia, which results in blanket reductions in either inventory or accounts receivable.

If the firm can generate an adequate level of sales volume and a realistic gross margin on those sales, profits tend to increase almost exponentially. The key to this strategy is to have the right product in stock when customers want it and to be willing to finance those purchases. There is no other realistic approach to profit improvement.

. Eliminating Marginal Investments: The key to investment reduction success is focusing on where the investment is doing little to help the firm generate sales and profits. In inventory planning this is easy; for accounts receivable planning it is much more difficult.

In inventory, the problem investments are easy to identify. They are items that have not sold during the last year. Monitoring systems must be in place to highlight these problems and management must deal with them on an on-going basis. Dead inventory never returns to life.

For accounts receivable, the issue is more complex as it is not just the slow-paying accounts, but those which are slow paying and also generate low levels of sales and gross margin. This requires a system to evaluate the overall profitability of accounts and commensurate ability to make pricing adjustments where the return does not justify the investment.

- Dr. Albert D. Bates is founder arul president of distribution research firm Profit Planning Group, Boulder, Co. The article is adaptedfrom his new bookProfrt Myths in Wholesale Distribution: The Truth about Sales, Margins, Inventory, and Expenses, offered by the NAW Institute for Distribution Excellence, (202) 872-0885, www.naw .or g /p rofitmy ths.

ce etitiv ligen Outside of the box and ahead of the pack

By Carla Waldemar

"We started with a single warehouse, one yard," Al continues. "A couple years into it, we decided to build a truss plant so we could sell both the lumber package and the trusses. That elevated us quite a bit." Next came windows and exterior doors: "You know, if we keep building up, we need our own shop." So the boys bought some used equipment ("We're great at developing in very creative ways") and set up shop.

"We were doing good business in our Nokomis yard and also pulling from Englewood, the next community down the road," Al shares. "We got word of a yard there going out of business and took a look. Too small. But they told us about a vacant truss plant nearby on three-and-a-half acres. Perfect!"

Done deal, but not done yard. That's not how Kimal operates. "We decided we'd build an absolute model yard and really did our homework," he says. "We studied it systematically. We'd add buildings and paving through our profits over the next yew years. We learned early on that adding buildings in Sarasota County was a real nightmare, due to regs. So instead we put in outside racks from Sunbelt. Every time we'd make a profit, we'd buy more of what was needed.

I L Bavry loved his job at Wickes. la,But a funny thing (or not) happened on the way to the gold watch. A changing of the guard occurred, replacing a progressive c.e.o. with, Al moans, "a bean counter: destructive, bottom-line thinking."

Which got Al thinking, too. He and Kim Pavkovich, a fellow manager, tossed around the idea of starting their own small, independent yard. How hard could it be? Three years later, in the early '80s, with property, pro forma, and bank loan in place, the partners opened Kimal Lumber (Kim + Al: Get it?), close to home in Sarasota County, Fl.

Wickes told its people, "He's now the enemy." In contrast, the established independents-Kimal's competition-were quick to offer, "If we can help you...." Story of our industry.

"We made up our minds from day one to target the small, independent builder and remodeler," Bavry notes.

And for over 25 years, that's propelled them. "Today, the national builders are dead in the water, and organizations like Stock and ProBuild are run by accountant-types. The old entrepreneurial spirit is gone."

Well, not quite extinct. Take a look at Kimal: "We built our business one customer at a time, through relationships-selling quality and service: our reputation-totally by word of mouth: An ad budget of zero. Under the radar," says Al. Not bad for a company that saw $60 million in business before the recession hit.

"We're a bunch of mavericks," he declares. That's both the explanation for Kimal's modus operandi and source of its success. "Every time we do something, we look at it from the standpoint not of today, but double or triple down the road. Everything we do in this company looks way into the future: 'This is where we need to be in five. six vears."'

"Then, we did something really smart: By 2001, we'd outgrown our tiny, 700-sq. ft. office and would eventually need showroom space, besides. We found out we could go nine feet taller at very little extra cost, so we built a two-story building,

AL BAVBY launched his Florida lumbervard with a partner, six employees, and a desiie to retu.rn an entrepreneurial spirit to the lumber ousrness.

where the ceiling of the ground floor became load-bearing, looking to the future."

Back to the future again. Twelve years ago, Sarasota County funded the now-famous Florida House-the house of the future. "They came to us for input," looking for material to meet the infant 'green' and 'sustainable' mold," Al recounts. "Gee Whizl What we discoveredl"-starting with trusses, formed of "wood from the best-managed southern pine forest in the world;" G-P's Innerseal siding, a forerunner of fiber cement, and TrusJoist Timberstrand, "the beginning of long, layered, strand-engineered wood, totally different from OSB. We talked the Minnesota manufacturer into it, as the wave of the future, and they produced it for us."

The Florida House gave Kimal the green light to move in a "sustainable" direction. "We saw that environmental awareness would develop, not go away, and we're always looking at what's coming down the pike; we do our homework," Al says. "Back then, a dozen years ago, you had to hunt for green products. Today, there are so many that you just pick the best ones. It's not a passing thought."

And that says a lot about Kimal's own thought processes. "We think outside the box," he elaborates. "We're very, very contrarian. We do what other people aren't yet doingand even more today, when the economy is nose-diving."

Evidence: "Before the downturn. we had a plan in place to build a unique showroom, and the easiest thing would have been to discontinue it. But, yet, it would be a very valuable tool to us, so we couldn't not do it.In a horrible economy, you've got to sell yourself out of it," Al attests.

So the show(room) must go on. In designing it, "more important than anything else," Al says, "was thinking about the showrooms you've been in. Sterile. Not real customer-friendly. So, we brainstormed: 'Let's come up with something really different!' When people come through the door, they want to spend time here. We developed it like mini-storefronts, with a cement floor like a boardwalk. It's not just displays, but a great idea center, like pieces of a finished house. People feel at home, not beat up.

"As we talked about building a place for our designers, it got us thinking: Why not build it green? In fact, why not make it the greenest building

in Sarasota County?"

That meant using products like GP's breathing drywall, where mold hasn't a chance, Sherman-Williams' zero-VOC paint; dimmable fluorescent lighting, almost unheard of at the time, and floors and roofs of SIT panels in 8-ft. widths, topped by Advantec, with bamboo flooring on top of that.

Homeowners swarm to it. builders bless it. But Kimal, in its customary out-of-box approach, is also using the new facility to partner with an even wider stretch of professionals. The Event Center, as it's called, includes a 12O-seat auditorium with state-of-theart technology, in which workshops and seminars (as well as staff training) are offered on what's good. And green.

"Our Events Center goal was to train our people on green products and systems through workshops and seminars. But we've gone beyond that to offer CEU credits for architects, specifiers and designers, and more-people with whom we've never partnered before, like bankers, insurers, real estate folks, building inspectors. "Use us as your resource for information," we tell them. Since it opened in 2OO6, we've added so many people we've never dealt with before. Partnering," Al insists, "is key."

High time to get out from under the radar and no longer serve as a bestkept secret. "We needed visibility," Al allows. So now the center also offers Dale Carnegie and Leadership Training classes to the trade and

Chamber of Commerce members.

Speaking of reaching out to the community-and A1 didn't speak of this, but Kimal's website does-the company supports a Ronald McDonald House and the local Children's Hospital. Its fundraiser, Building to a Cure, involves a fundraising walk/run, classic car show, and golf tourney. In 2005,$52,200 was raised for charity.

Green is the color of the future, Al is convinced. "I truly believe the [economicl situation won't move back to new construction the way it was before. No! There's a brand-new paradigm ahead of us," driven by the Millenials-young buyers. "They pay attention to energy bills, not mortgage costs. They're very, very serious about protecting the environment. For them, it's not the size of a house as much as the quality put into it. It's absolutely, totally different from everything we've thought about before."

The market in Florida is as tough as anywhere, but Al sees that glass as half-full. "People are not buying new construction -rather, older homes. Then they put $400,000 into modernizing them. It's a circle that never ends, so the potential is endless. Sure, times are tough, but we'll get through it. Not by following a corporate template-stifling! -but through people, like ours, who are passionate, creative." That's Kimal's mantra. Catch the wave!

- A former award-winning LBM trade magafine editor, Carla Waldemar writes frequentLy on the industry. Contact her at cwaldemar@ comcast.net.

NEW SHOWROOM showcases not only room settings, but also full exteriors.

ll /I'ANY struggling sellers believe IVlmaster sellers are saying magical things that are getting customers to buy from them. The reality is that most master sellers:

(l) Have a crystal-clear idea why they are calling their customers

(2) Use a simple approach

(3) Ask for the order more often!

When I started selling, a great salesman, Jack Greene, taught me a simple opening that at the time seemed too simple, but has proven to be a sure winner:

"Good morning, Mr. Customer, the purpose of my call is...," then present, promote and sell your idea.

Working with struggling salespeople, I find one of the biggest mistakes they make is not knowing why they are calling on the customer. Does this seem unbelievable? Many salespeople call customers with only a vague idea what the call is going to be about, much less what they will sell the customer.

When we enter conversations with no direction, customers sense it. What will happen when a customer senses that we have no direction or purpose?

The purpose of my call

By James Olsen

Several things can and will happennone of them good for us as salespeople.

The customer will become irritated and show us to the door (end the call). The customer will take control of the call. This in turn wastes our time and/or drains the profitability out of our proposal. When we turn control of our sales call over to the customer, we automatically turn ourselves into quotron units. We are no longer selling our customer, but servicing their inquiry. Servicing inquiry is not partnership selling.

Many salespeople think they are calling to "touch base." This is a waste of the customer's time. Customers will become annoyed when this happens and will begin to treat the seller badly. Why wouldn't they? The seller is wasting their time. Many sellers blame this bad treatment on the customer, when it is really their own fault.

The customers who don't get initated are still confused. Many will begin to treat the seller as if they are a service agent. Customers will ask the unfocused seller for all kinds of options and information but will not buy. Again, sellers will get upset with these customers for wasting their time, when they (these sellers) have not sent the I-am-here-to-get-thebusiness message. These sellers mistakenly think that if they send this message the customer will shy away. Most sellers underestimate how hard they can push for an order without upsetting the customer. Conversely, many sellers would sell much more if they quit sending the I'm-here-to-talkabout-the-market message.

Sellers who send the right message work in their own favor. How? The seller who sends the messase. "I am

here to get the business," and does it on every call, conditions the customer. When a customer goes to a meeting or picks up the phone with these sellers, they know, before they go to the meeting or pick up the phone, they will be asked for the order. When customers already know this going into the meeting, our job is half done.

Sellers who send the "I'm here to talk about the market" or "I'm calling to touch base" messages have twice as much work to do on every call. They have to convince the buyer they are a salesperson and then they have to sell the buyer!

Timid sellers are afraid the customer will get mad at them if they ask for (and fight for) the order. If a customer gets upset with us for trying to get their business, we should ask ourselves why we are spending time with these customers.

Do we have to service our customers? Yes, of course. Should we service them for free, forever? Never! There will always be give and take in a competitive sales environment. I am not suggesting we tell customers who don't buy from us every time to go take a jump. I am suggesting that we not work against ourselves by sending the wrong messages.

Our attitude with customers should be one of purpose, partnership and mutual respect, not servitude. When we call with a purpose, we send partnership messages and develop partnerships. If we send servile or vague messages to our customers they will treat us like servants.

What is the purpose of our call?

- James Olsen, Reality Sales Training, specialirys in sales training for the lumber industry. Reach him at james@realitysale straining.com or ( 503 ) 544-3 572.

Rrrlrrrns

Douglas Lumber & Building Supply, Castle Rock, Co., has been acquired by John Jones

Parr Lumber, Hillsboro, Or., opened a new location June 2 in Frederickson (Tacoma), Wa.-its 2nd Puget Sound lumberyard and 41st location overall ...

F rie dman's Home Improv ement celebrated a $6 million remodel of its store in Sonoma Valley, Ca., including 11,000 sq. ft. of new retail space, a 37,000-sq. ft. dry shed, and a 1000-sq. ft. addition to its nursery

Stayton Ace Hardware, Stayton, Or., has been acquired by Bryan Crews and Steve Herzog from longtime owner Myles McMillan, who will serve as a consultant during the transition ...

Home Depot opened a new store June 5 in E. Palmdale, Ca.; submitted plans for an 88000-sq. ft. store with 28p00-sq. ft. garden center in La Verne, Ca., and will open a 130,000-sq. ft. store early next year on 10.8 acres in Auburn, Ca....

L,owe's Cos. opened qew stores July I in Fort Collins, Co., and June 24 in Clinton, Ut.

Lowe's expects new store openings in 3rd quarter 2008 in Rio

Send us your news!

Have your recent expansion, promotions or other company changes published in the next issue of The Merchant Magazine.

Just Fax your news to 949-852-0231 or send by email to kdebats@buildingproducts.com.

h free seNice)

Ranch, N.M.; in 4th quarter 2008 in Highland, Ca., and in lst quarter 2009 in W. Eugene, Or. ...

Lowe 's received approval to build a 140, 013-sq. ft. store in Manteca, Ca.; is awaiting approval to build a 111,196-sq. ft. store in Sonora, Ca., and is studying a site in Marysville, Ca. ...

Wrouslr:rs/llhxurlcrunrns

Tristar Cos., with transload facilities in Fontana, Ca., and Vancouver,'Wa., is now wholly owned by Peter Howe ...

Siempre Mesquite's milling business in McNeal, Az., was destroyed by a June 7 fire, which is under investigation ...

U.S. Natural Resources (UNSR), Woodland, Wa., acquired competing sawmill equipment manufacturer Coe NewneslMcGehee, Salmon Arm, B.C., for $11 million ...

Simpson Manufacturing Co., Pleasanton, C&., acquired vent maker ProTech Systems, Albany, N.Y., for $7.5 million ... Simpson Strong-Tie is now a preferred supplier of NetPlus Alliance, a nationwide buying group of independent industrial and contractor supply distributors...

MFP of Oregon, Lake Oswego, Or., is exclusive sales agent for Milan Lumber, Milan, N.H., and Carrier & Begin, Beauce, P.Q.

Serious Materials, Sunnyvale, Ca., has acquired Alpen Windows, Boulder, Co.

Fastenal opened a new location in Sandy, Or. (Brian Bishop, general mgr.)

The Stanley Works agreed to sell its CST/Berger laser leveling and measuring business, W. Lafayette, In., to Robert Bosch Tool Corp. for $205 million ...

WoodPro Sofhuare, Richmond, 8.C., has partnered witb Red Wing Sofii,vare, Red Wing, Mn., to allow WoodPro's LBM software to interface with Red Wing's payroll application...

American Building Specialties, Denver, Co., is installing new computers and software from WoodPro Sofnvare Inc. ...

Vaagen Brothers Lurnber, Colville, Wa., is installing AssetPoint's TabWare EFx software to manage its milling operations

Jeld-Wen, Klamath Falls, Or., now offers Sustainable Forestry Initiative -certified wood windows and patio doors in its Custom Wood line

Crown Column & Millwork introduced an online class on "Designing & Specifying Architectural Columns;" the five-module course qualifies for continuing education credits from the American Institute ofArchitects

Mercer Window s, Beaverton, Or., has signed on Homewood Lumber, Loomis, Ca., as a distributor

True Value named its Suppliers of the Year, including Master Lock, Irwin Industrial Tools, Pentair Corp., Sunnyside Corp., Energizer, Midea Group, and Bonsal American

Anniversaries: Rafael Lumber & Building Supply, San Rafael, Ca.,25th...

Housing starts inMay fell3.3Vo to a seasonally adjusted annual rate of 0.975 million singlefamily starts dropped IVo to a 0.674-million pace, while multifamily was down 8Vo ... permits slid I.3Vo to a rate of 0.969 million regionally, starts were down l0.3%o in the West.

Not only is Canfor SitvaStar@ fascia less expensive than composites or cedar, it can atso be ordered in longer lengths. Why do we make our fascia in every key tength up to 36 feet? Because supplying allthe tengths your customers need saves them installation time and expense. Every inch of SilvaStar is made from high-quatity KD SPF fiber withao defects , so it's looo/o usable. Then it's carefulty factory primed with premium Otympicv latex primer. True, time is too short on any jobsite. Which is precisely why we make our fascia [ong.

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FASCIA. TRIM DECKINC PATTERNS LOC CABIN SIDINC

Listings are often submitted months in advance. Always veriJy dates and locations with sponsor before making plans to attencl.

Los Angeles Hardwood Lumberman's Club - July 12, election night, Cedar Point Inn, Brea, Ca.; (626) 445-8556.

Western Hardwood Association - July 12-15' annual meeting, Fairmont Chateau, Whistler, B.C.; (360) 835-1600.

Mountain States Lumber & Building Material Dealers Asso' ciation - July 14, golf tournament, Ranch Golf & Country Club. Westminster. Co.; (303) 460-9700.

Western Building Material Association - July 16-18' mid-summer management meeting, Salishan Lodge, Gleneden Beach,

Wood Moulding & Millwork Producers Association - July 1619, summer business meeting, Hyatt, Newport, R.l.; (800) 5507889.

Lumber Association of California & Nevada - July 17'19' annual 2nd Growth summer conference, La Quinta Resort & Club, La Quinta, Ca.; (916) 369-7501

Western Red Cedar Lumber Association - July 17-19, Cedar Summit, Victoria, B.C.; (866) '778-9096.

Black Bart Hoo-Hoo Club - July 18, golf/BBQ, Ukiah Municipal Golf Course, Ukiah, Ca.; (707) 462-3'700.

Lumber Association of California & Nevada - July 24-26' board meeting, Konocti Harbor Resort & Spa, Kelseyville, Ca.; (916) 369-750t.

Temperate Forest Foundation - July 24-27 , Pacific Northwest Teachers Forestry Tour, Portland, Or.; (503) 579-6762.

Rogue Valley Hoo-Hoo Club - July 25,46rh annual invitational

golf tournament, Rogue Valley Country Club, Medford, Or.; (541) 7'79-5t2t.

Hutchison Lumber - July 28, charity golf tournament, Ranch Golf & Country Club, Westminster, Co.; (303) 460-9700.

North American Retail Hardware Association - July 28-30, convention & annual meeting, Hyatt Regency Monterey Resort, Monterey, Ca.; (317) 290-0338.

SierraPine - July 31, sustainable building products forum, Eugene, Or.; (800) 54'1-9520.

National Wood Flooring Assn. - July 3l-Aug. 2, summer meeting, Portland Regency, Portland, Me.; (636) 391-5 l6l.

Auousr

Humboldt Hoo-Hoo Club - Aug. 1, golf tournament, Baywood Golf & Country Club, Eureka, Ca; (707) 268-3082.

North American Wholesale Lumber Association - Aug. 3-6' Young Distribution Professionals conference co-sponsored by North American Building Material Distribution Association, Eagfewood Resort & Spa, ltasca, Il.; (800) 521-8258.

Los Angeles Hardwood Lumberman's Club - Aug. 14, general meeting, Steven's Steakhouse, City of Commerce, Ca; (626) 445-8556.

Orgill Inc. - Aug. 14-16, fall dealer market, Chicago, Il.; (901) 754-8850.

International Woodworking Fair - Aug. 20-23, Georgia World Congress Center, Atlanta, Ga.; (404) 693-8333.

Black Bart Hoo-Hoo Club - Aulg.22, trap shoot, Harwood Mill, Branscomb, Ca.; (1Oi) 462-3700.

Remodeling & Decorating Show - Artg. 22-24, South Town Expo Center, Sandy, Ut.; (818) 557-2950.

Remodeling & Decorating Show - Aug. 22-24,Pasadena Conference Center, Pasadena, Ca.; (818) 557-2950.

American Architectural Manufacturers Association - Aug. 27-28, western region fall meeting, Marriott Portland City Center, Portland, Or.; (847) 303-5664.

FSC

hE s<€-2i.r The FSC logo identifies products ofrhrfd.*d from well-managed forests.

I I rchitects. errgineers and dealers nationu,'ide look to QB Corporation for str'ong1 elegarrt glulam beams, trusses, arches, and headers. QB offers such combinatiens as:

0 QB 3000

Q Douglas Fir stock and custom beams

$ Douglas Fir'. \I/esterrr Red (-ledar arrd Alaska Yellox' Ccdar custorl bcarls

Q Ourvecl, pitr:hed arrd tapered

$ Tiusses-fullv assernbled or prefabricated

$ Spans to 125 fcct

Q Af1'Cl approved- ANSI/AITC L190.1-2002

Q F ast dcliverv through our network of distributors

0 I"S(i certified

qtion news

Mountain States Lumber & Building Material Dealers Associ' ation hosts the Hutchinson Lumber charity golf tournament July 28 at Ranch Golf & Country Club, Westminster, Co.

Sept. 12 is the date of the Western Slope golf tournament at Rifle Creek Golf Course. Rifle, Co.

Lumber Association of California & Nevada has scheduled its next two 2nd Growth events-the annual summer conference July I7 -19 at La Quinta Resort & Club, La Quinta, Ca., and a regular monthly meeting Sept. 10 at the Red Lion Hotel, Redding, Ca.

National Hardwood Lumber Association is coming Westl Its annual convention and exhibit show-

case is set for Oct. 8-l I at the Marriott, San Francisco, Ca.

A golf tournament will start the event, followed by a cocktail reception and board dinner. Former White House press secretary Tony Snow will open the second day, followed by informational meetings, an under-40 reception, and dinner.

The third day features seminars. a grading class, the Forest Stewardship Award, and musician Chuck Leavell.

Western Wood Preservers Insti' tute has planned its annual meeting for Oct. 26-29 at the Fess Parker Doubletree, Santa Barbara, Ca.

APA-Engineered Wood Association holds its annual meeting and supplier expo Sept. 20-23 at Ritz-Carlton Lake Las Vegas, Henderson, Nv.

TRUTH TELLERS: Jason Grant (/efl), Jason Grant Consulting, and Donn Zea, California Forest Products Commission, led a May 13 Forest & Wood Ceftification Truth Squad pre' sentation in Sacramento, Ca., sponsored by Lumber Association of Calilornia & Nevada.

Get connected Building community around your store

EIOR generations. the hardware

L' store was a focal point in the community, where folks could get great advice, discuss the issues of the day, or catch up on the latest gossip.

Obviously, things have changed as big box retailers have muscled in and literally changed the landscape. And it seems the bigger "the box," the less community connectedness.

In contrast to that disturbing trend, a recent report from Conscientious Innovation, a sustainability think tank, found that consumers ranked feeling connected to family and community as their most important sustainability issue. Also ranking high was the desire to support locally owned businesses. These results lead to an important insight: Forging deep connections within your local community just may be one of the greenest ways you can grow your business.

Last month we talked about things you can do to "green up" your store's operations, suggesting that offering CFL, battery and paint recycling provides a valuable community service. Recycling programs provide convenience to your customers, but deliver something more important to your community. By diverting toxic waste from the local landfill where it can leach into the ground water, you demonstrate a concern about the health and well being of your patrons.

But to get really connected with your community, you've got to get involved. Contact your local green building organization (it might be a city agency or a local nonprofit), call them on the phone as soon as you've finished this article, go to their meetings, and let them know you want to be involved. This will get you access

to valuable know how and help you connect with local green building leaders.

Most cities with green building programs embrace interested retailers and will even include them in promotions. The city of San Francisco recently took out ads in the local paper promoting the local hardware stores stocking green building products.

By Jay Tompl

build long-lasting relationships.

There are probably other organizations in your area that are focused on protecting local watersheds and bays or wilderness areas. Find out what your staff members are interested in and encourage them to get involved, too.

You should also consider participating in local green events where you can educate community members about what your store is doing to make less toxic, environmentally friendly, and resource-conserving choices available.

Better yet, host a green event at your store. If you've gone out and developed relationships with local green building and other sustainability organizations, you should find no shortage of enthusiastic help. Enlist the aid of your local green product manufacturers and distributors as well. After all, they are an important part of your community, too.

But don't stop with green building, connect with other nonprofit organizations. If your store is locally owned, join the Business Alliance for Local Living Economies (www.livingeconomies.com). BALLE's mission is about building community through local business networks. They can help you build the "buy local" advantage in your market. Don't forget to support your local schools and parent groups. Making a small donation of organic compost for the school garden, participating in their fundraisers, sharing information about non-toxic alternatives-those small ways of showing your support will help to

Getting connected with concerned community groups will make you feel good about offering eco-safe and nontoxic alternatives. It will also build your reputation and generate excellent word-of-mouth referrals, bringing new appreciative customers into your store. You can do good and do well, and that's what getting connected is all about.

- Jay Tompt is vice president of green product development at Plan-It Hardware, San Francisco, Ca., which distributes green products for hardware and home improvement stores throughout California, and a leading expert in sustainable business and supply chain issues. He can be reached at info@plan-ithardware.com or (415) 359-9914.

OSH Replaces Last H&E

H&E Home Centers has closed its final location and Orchard Supply Hardware will take over the Hesperia, Ca.. location.

Over the Iast l2 months. H&E closed its four other stores in Southern California's High Desert ( see December, page J4l, leaving only the l9-year-old unit in Hesperia, its newest and most profitable location.

San Jose. Ca.-based OSH had been considering a site in Hcsperia fbr 18 months when it learned H&E's build-

OldWorld

ing would become available. OSH will hire some former H&E employees and remodel the structure in time for an August 2 opening.

Creditors Stall Pnlco Sale

Unhappy lenders who are holding $714 million of bonded debt related to bankrupt Pacific Lumber Co. are holding up a reorganization plan that recently received preliminary approval.

Led by the Bank of New York Trust Co.. the lenders contend that the worth of their collateral-200.000

Crafumanship

In Todayos Designs Tru-Dry Timbers

Geo. M. Huff Lumber Company has teamed up with Forest Grove Lumber to become the exclusive Southern California stocking distributor of Tru-Drv Timbers.

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

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

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

acres of Pacific Lumber timberlands-was allowed to diminish in value during the 18 months of bankruptcy proceedings. They want the judge to restore the full value of $714 million, by imposing a "super priority claim" on top of Mendocino Redwood's $530 million cash offer for both PeLco and the mill town of Scotia. Ca.

The federal bankruptcy court endorsed the takeover deal by Mendocino Redwood and Marathon Structured Finance Fund, a decision that was praised by political, environmental, and community leaders. Gov. Arnold Schwarzenegger said that the plan "offers the best opportunity to protect both the economic and environmental value of these assets."

Mendocino Redwood chairman Sandy Dean said the company plans to sustainably log the lands and continue operating a sawmill. "This will allow the way of life and quality of life to be maintained." he said.

In a letter to PALCo employees, Mendocino warned that "the new bondholder claim, if successful, could render our plan unworkable."

Presiding judge Richard Schmidt rebuked the lender's for wanting to liquidate Pnlco, which he said would lead to the company's demise, the closure of its Scotia mill complex, and the end of a "way of life."

Mif f Em bezzlers Indicted

Eight people have been indicted following a government investigation into a $2.5 million embezzling scheme at Manke Lumber. Tacoma, Wa.

Among the eight is Brett M. Smith, 24. who worked for the lumber company for two years and was responsible for weighing and inspecting logs and then sending checks from the mill. The government alleges that Smith created false records and sent checks to conspirators for logs that were never directed to the mill.

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Also indicted were Smith's brother Bryan Smith, 24; Elaine H. Turner, 28, and Jeffrey S. Ogburn, 24, all of Puyallup, Wa. They allegedly recruited four others to receive the fraudulent checks: Jennifer L. Carino, 25; Robert M. Lester, 28; Robert E. Daniels, 2l , and Zedrick M. Carter, 30. The government said those four people cashed the checks from Manke, kept some proceeds, and sent the rest to Brett Smith.

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Huttig Glosing Two Branches

Huttig Building Products, St. Louis, Mo., will close branches in Fresno, Ca., and Jackson, Tn., later this year and lay off about 37 workers.

Huttig will serve its Fresno customers from its distribution facility in Sacramento, Ca. Jackson customers will be served from facilities in Cape Girardeau, Mo.l Nashville, Tn., and Jackson, Ms.

Alaska's OK Streamlining

OK Lumber/Ace Hardware. Fairbanks, Ak., is downsizing after 40 years of business.

"We just have too many buildings and too much property here for our business of today," said Rich Kruckenberg, who became sole owner of the family business in 1996.

To reduce costs, inventory will be liquidated and part of the retail hardware business will be moved to a traditional, stand-alone hardware store in September. The lumberyard and merchandise aimed at contractors will stay at the current six-acre location with 26,000-sq. ft. building.

Both Kruckenberg and general manager Jordan Halden said nearby

big-box retail stores were to blame for the downsizing, along with increased overhead costs. The company currently employs 14 workers, compared to about 50 in 2000.

"We can't get any more efficient, I think," said Kruckenberg.

Modesto Lumberyard Closes

Yard Lumber & Fence Supply, Modesto. Ca.. shut down June 18 after 33 years, due to slow sales and the owner's decision to pursue other ventures.

"The timing just kind of fits," said owner Gary Robinson, who plans to auction off remaining inventory. "I have other things I want to do, and I think that's the direction I want to go."

The company scaled back from about 70 to 20 employees about a year and a half ago.

UFPI Buys D-Stake Mill

Universal Forest Products' Western Division has purchased as sets of D- S take Mi I I . Inc.. McMinnville, Or., and Manufacturing Country, Independence, Or., expanding its reach in the growing industrial

products market.

D-Stake and Manufacturing

Country produce kiln stickers, lath, stakes, decking, pallets and pallet components, with an estimated $18.5 million in sales in 2007-primarily in California, Washington and Oregon.

"Universal provides us with the opportunity we needed to take our company to the next level of success," said Bob Harris, president and a principal of D-Stake.

Sales manager Dan Harris will remain with Universal as general manager of operations. Bob Harris will stay on as a consultant through the transition.

Lowe's Deals In San Jose

After years of legal squabbling with preservationists, Lowe's has reached an agreement on how to blend a historic IBM site into the design of the company's proposed store in San Jose, Ca.

The squabble began in 2004, when the Preservation Action Council filed suit against the San Jose City Council after it approved Lowe's project. The preservation council was trying to save IBM's former Buildine 25 from

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demolition as Lowe's began to develop the site. The 50-year-old building was considered historic for the research conducted there and its California mid-century modern architecture. Both sides were close to a resolution when a fire destroyed the IBM building.

The settlement calls for a wing of IBM Building 25 to be reconstructed for future retail use and for certain features of the building that was destroyed in the fire to be incorporated in Lowe's new store. An interpretive display of Building 25's history also will be available for public viewing.

Former P&T Mill To Reopen

Pope & Talbot's former pulp mill in Halsey, Or., restarted in late June under new owner Wayzata Investment Partners, Wayzata, Mt.

Wayzata won the mill in a bankruptcy court auction June 16, with a cash bid of $31 .2 million. and the sale was completed by the following Friday, June 20. The firm specializes in private equity and hedge funds, part of which are invested in Tempec Paper Group of Canada, which operates pulp and paper mills and lumber mills.

The pulp is used for products such as paper, tissue, and building products. Some of the mill's major customers included James Hardie Building Products and Weyerhaeuser, according to Wayne Henneck, previously general manager of the mill and now president of the newly named operation, Cascade Pacific Pulp LLC.

Because the mill's May 9 closure prompted some customers to seek out other suppliers, Henneck said "we need to get up and running as quickly as we can."

According to Henneck, the new owner isn't planning "a quick turnover" of the Halsey mill. "They plan to operate and improve the mill and make it a good, ongoing profitable operation," he said. "They historically hold onto assets like this for six to eight years."

Pope & Talbot, a 159-year-old company based in Portland, Or., filed for bankruptcy in November and unsold assets were turned over to a court-appointed trustee for liquidation. The fate of its remaining facilities-a sawmill in Fort James, B.C., and shuttered pulp mills in Mackenzie and Nanaimo, B.C.-will be determined July 7 at a hearing by the Supreme Court of B.C.

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Respondin$ to wood structural panel complaints

l|/-\OMPLAINTS are a top priority\-rthey demand quick response. The longer you sidestep a complaint, the harder it is to resolve. Customers deserve attention and respect-only a patient listener can give an intelligent response.

Your first step, after the customers have given their input, is to determine whether or not the complaint seems legitimate. If not, say so-politely but firmly. Don't waste your time with false claims. Also be sure you sold the material.

And, if in your opinion a complaint is legitimate, note all the pertinent facts before contacting your supplier: Grade

. Thickness

. Span Rating Group number Bond classification

. Mill number

. Name of trademarking agency and all other panel markings, such as production information.

Find out also the number of panels involved, the particular application and full details of what the customer thinks went wrong. Many complaints can be resolved by telephone. If this is impossible, visit the site and see for yourself. Personal appearances do wonders for customer relations. Build-ers and owners are always impressed by involvement and initiative.

Even if you finally reject the complaint, the customer will respond positively to your professionalism.

APA PRODUCT SUPPORT

253-620-7400

Sincerity retains customers. If your supplier doesn't respond to a legitimate complaint within a reasonable time, call again and insist on action. Your APA field representative can also offer guidance and assistance.

Although APA does not participate in actual settlements, your field representative will gladly answer your technical questions and can facilitate communication in situations where APAtrademarked panels are involved.

Typical Panel Complaints

APA-trademarked panel complaints are infrequent, but if you do receive one, it is likely to be on this list:

Delamination

This is essentially ply separation due to glue bond failure. It's defined in U.S. Product Standards PS l-07 and PS 2-04. For non-PS I panels manufactured under APA Standard PRP108, see Performance Standards and Qualification P olicy for StructuralUse Panels, Form 8445, or PS 2, Form 5350.

Checking, leafing, splitting and broken grain are not delamination. Buckled panels and swelling over core gaps and knotholes are also sometimes erroneously reported as "delaminated." It's important to clarify the difference and to explain good construction practices, which will prevent or minimize buckling. Use each complaint as an opportunity to educate users and forestall future complaints.

Buckling

This develops when a restrained panel (i.e., fastened to a framing member) is contorted or deformed between supports, either along its length or across its width. This checklist should help you handle buckling complaints:

Improper panel spacing: Ask how the panels were applied. Let the customer do the talking. Panel spacing is critical because panels need room to expand when they absorb moisture. If

they're butted up tight during application, they may buckle. Improper spacing is not the only cause of buckling, but it's the most common. There may be other contributing factors. Generally, panels should be spaced l/8".

. Fastener spacing, type and size; Under ordinary construction conditions, nailing according to APA recommendations keeps panels flat. But if nail spacing is too wide, panels may rise off supports, giving the appearance of buckling. If finish materials are in place, a check of the nailing is difficult. "Missed" nailing is obvious, however. A business card inserted at the panel/support interface can often help you determine nail spacing.

Twisted, improperly aligned, or "high-low" framing members or trusses: These conditions can contribute to "waviness," or the appearance of buckling. Even collar beams must be checked to determine if their corners have been cut off flush with the slope of the rafters. If not, roof panels will "hump" at those points.

. Improper ventilation: Evidence includes rusty nails, mold, waterstained panels, mildew, water droplets or ice particles on sheathing, insulation-clogged vents. inoperative power vents and moist or water-stained insulation. Bathroom and kitchen vents should never discharge into attics. See Technical Note X485, Condensation Causes & Control:Technical Note

D48 I, Buckling of Wood Structural

Panel Sheathing, and Technical Note F4lO, Buckling of Wood-Based Panel Siding, for correcting buckling and ventilation problems.

Warping

Distinct from buckling, warping refers only to unattached panels. Three conditions of shape distortion constitute warping: cupping (when the axis of deformation is parallel to face grain); bowing (when the axis of deformation is perpendicular to face grain), and twisting (when one corner of a panel is bent out of the flat surface plane).

Warping can be prevented by proper panel storage, especially by cutting the bands on bundles stored outdoors or exposed to moisture, by storing panels on three or preferably more evenly spaced stringers, and by weighting down the top panel in a stack. Proper attachment of the panels to framing will almost always pull a warped panel flat. Consequently, the ultimate performance of the panel is normally not compromised. See APA Builder Tips U450, Storage and Handling of APA Trademarked Pane I s, for recommendations.

Thickness Swelling

OSB panels exposed to moisture conditions for extended periods may exhibit irreversible thickness swelling, most typically near panel edges or ends, but also occasionally throughout the field of the panel if the exposure is

severe. Panel structural tests show that such swelling does not result in a loss of panel structural capacity (bending stiffness or strength, or diaphragm, shear wall or wall bracing capacity) after the panel dries to in-service moisture conditions

Heavyweight roofing (laminated asphalt shingles, cement tiles, or wood shingles or shakes) and siding can mask surface uneveness that results from thickness swelling, whereas thin or flexible materials may telegraph panel joints or substrate irregularity. More detailed information is available in APA Builder Tips N335, Proper Installation of APA Rated Sheathing for Roof Applications.

Floor surface unevenness may result in telegraphing panel joints through finish flooring, may cause cracks over floor panel joints with rigid, brittle flooring materials such as ceramic tile flooring, or may cause squeaks in the underlayment or wood flooring connections to the subfloor.

Ridges or thickness swelling along end and edge joints between panels in the floor deck should be sanded smooth, after the panels have dried to in-service moisture conditions, and panel buckling should be mitigated before installing finish flooring (carpet and pad, hardwood flooring or plywood underlayment, for use under vinyl, ceramic tile, or direct-adhered carpet). More detailed information is available in APA Builder Tips Q300, Steps to Construct a Solid, SqueakFree Floor System, and APA Technical Note R280, APA Performance Rated Panel Subfloors Under Hardwood Flooring.

Surface Flaking

OSB and plywood panels exposed to moisture conditions for extended periods may exhibit a rough, uneven surface that may detract from appearance. Some lifting or flaking of surface strands on OSB also may occur. Panel structural tests show that such surface degradation does not result in a loss of panel structural capacity (bending stiffness or strength, or diaphragm, shear wall or wall bracing capacity) after the panel dries to inservice moisture conditions.

It is not uncommon for structural panels to be exposed to the weather lor a month or more during construction. The surface of the panels often appears rough but the panels generally remain structurally serviceable.

Although in-place inspection is subiective. one method often used to

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deterrnine if roof or floor pancls are suitable lbr usc aficr crte nde-cl exposLlre to Vucathelin-e is to wulk on thcnt. lf thc pancls lccl solid contpared to cxperiencc with othe r pancls ol'cquir'alent thickness in sirrrilar applications rncl support sptrcing conclitions. thcr errultl he .jtrdrctl i.r\ \itti\lilLl()li. Tlr.' longer the panel is crposccl. thc murc scrutinizing the inspcction shoLrld bc. Only Extclior pancls are intcnclccl lirr ]lcfrnancnt cxposure to thc wcalhcr. anrl cvcn (hcn conrlitions tltitt can cause clccav shoultl bc ltrevcntccl.

Flooring Applications'I'hcsc corrltlaints. includin-q squcaks. nail poppinr. unclcrlavntcnt w'rinklirrg. arrcl unclerlrnntcnl .joint shou -tlrr-ough. olterr lcsult l'r-ont irnplopcr. instlllation. You cun iclcntil'y'thcm with closc obscrvulion uncl stuclr o1' ,\PA -fechnical Notc C-l(r8. I"loot' SqtrcuA.r.' Crrlr.ic.r, .\olttt iott.s & l)re-vtntitttt. APA Urrilclcr Tips S300. lltinitrti:.c Noil l)o1tt'. Q3(X). .!rr7r.r lo (.ott.stt-trtt tt Solitl , Srltteuk Frcc Floor .t.r'.r'1r,rr: R3.10. Pi'r;7rlt' .\'rIet tirttt & Irt.stulltttitttt ol r\PA I'lyyrootl Iltttlcr Itt.ttrtt'rrt. lncl APA l)tita l;ilc L33-i. Itt.stulltttiotr & Itrtpttratirtn o.f Plt trootl 1..! ttdcrltt .trtterrt .f'or Rt.siIicttt lt I t tt tr (- t tt'c t' t t 1q.

Roof Applications

Rool' surlacc unc\ e nncss olterr rcsults ll'onr ridginu carrsecl bl.ntove nrcnt ol cithcl thc lttol'e ovcrin-e. rtoting unclcrlavntcnt. r'isiil insullrtion. or

Thickness Swelling

roof sheathing clr-rring rnoisture or' tenrpcraturc indr-rccd chungcs. Inrlrropcr installation ol' any ol'thesc contponcnts can rcsult tn Liltc\ cliltess. More dctailecl intitrntation is availublc in APA Builcler Tips K-j10. Hotr to illittittti,-.c Ilucklirt,q o.f A:ltlrulr

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Siding Applicutiorts

Surl'acc clantirge to sicling or- otltcr crposcd punels can oftcn be rcltaircd

in thc I'icld rvithout rentoving thc panels in rluestion. l)cnts or -gougcs can bc lepaircd bt, rcntoving loose uood nlitcrial u itlt a chiscl <lr router and thcn filline uith l t\\o-contpollcltt. hiuh-pcrlirrnrancc rcsin systcm such as uuto hoclr, ltuttr , Blistcrs can often be lcpairccl b1 injccting an aclhcsive irnil |ch()n(lin.r Ihr. ilt'cir it) (lUc\ti()lt. Both of thcse rlcthods ulc clcscribcd in Tcchnicrrl Notc .lfl05. l:ialtl lleltuir.s ol Pl.tworxl \liltlcri call gro\\ on llnrost anv surlacc il' conditions arc favorablc. -l'echnical Notc l-E0-5. Milrlt,y. l)i.scttlrtrttI ictrr rtl ll'ootl .\itlitt.q. clcscribcs hou rrrildevn dcvclolts. hou, to identil't' i1. anrl rnethods of rcntctvul lund controi Whilc ntildcu, llav bc ttrt.iqltllr. tl (l()c\ llrrl \ilU:r',llrrttlrLe 1,, thc product. It can. how'cr,cr. bc intlicatir c ol' a l)otcntilllr tllntL-uing t.ttoisturt. ltroblenr in thc structurc. Staining o1' puintetl sur'l'aces nta1, occur w'her) watcr-solub lc ri oocl c\tlilcti\cs arc lcucltecl ll'tim tlte wood substratc uncl transpo|tccl to the fini.llr'rl .Lu llrut'. Erlllrr'tire sllrinin!: is oftcn associatccl r.r'ith ultplication of li-cht-colol.cd late.r stains but can be contfollecl through ccrtain pKtcedu|es clcso'ibccl in 'l-cchnical Notc L8 10. Sluirtirrg o.t' L'itti.shas.f t'orrt Wcttt'r"\ttILrItIt ll/ttttd l,rtnrt trye.t. Fot' technicul lrlvicc or'lol ussistance witl'r runusual cornplaints. coltsLllt t,our AI)A liclcl l'cprcscntiiti\e. Renrcrnbcr: ;\l)A licld lcprescntutil,es ure aln'avs trrlrilirhle lt, lutsrtul rlLt(':li()n\ ()n pll;t. els bcaring lhc ntark of'clLrulitl thc Al),\ tlurlenralk.

Information in this article is intended to provide guidance about the serviceability of wood structural panels after a flood. This article is not intended to address potential health and indoor air quality concerns that may arise in this circumstance. This type of information is available from FEMA and the American Red Cross. "Repairing Your Flooded Home" is free from FEMA Publications, Box 70274, Washington, D.C.20024. (Extensive damage may require professional services to assess & repair wood construction.)

Wood Construction & Water

The recent Midwest floods covered an area the size of New Jersey and served up yet another reminder that Mother Nature is in charge. On the positive side. wood construction is durable and will normally be structurally sound after severe water exposure during a flood. Structural plywood and OSB used in floors. walls and roofs are made with water-resistant adhesives that retain their strength when wet. Although the panels will be rougher from water exposure, they are still structurally sound. Saturated panels will feel less stiff than those in a dry condition. Once the panels are dry, strength typically returns and only minor repairs may be necessary.

Note that some plywood panels manufactured prior to about 1972 for interior use may contain adhesives which are not fully water-resistant. These panels can be identified by the term "Interior" in the grademark.

APA Trademark Identification

To tell if your APA plywood has water-resistant adhesives. look for the

APA trademark. APA is the quality assurance agency that many wood structural panel manufacturers use. Older plywood may bear the DFPA trademark (APA's original name was the Douglas Fir Plywood Association). The trademarks will typically be in black ink printed in one or more places on one side of the pancl. The trademarks on APA plywood with water-resistant adhesives will contain the words "Exposure l" or "Exterior". OSB is made with water-resistant adhesives and will also say "Exposure 1" (or "Exterior" for siding).

Fungal Decay Prevention

Once flood water recedes, fungal decay organisms are presented with an ideal moisture condition. So. it is important that the wood dry as soon as possible to ensure that the wood decay does not affect structural capacity. How to preserve sound structures:

1. Clean out all mud and debris in contact with panels, studs, joists and beams. This will allow wood to dry and permit inspection for structural damage.

2. Remove carpeting, pad and vinyl-vital to allow the panels to dry.

3. Remove wet interior finish (such as wallboard) from walls, remove wet insulation, and clean out any mud and debris, encouraging free air circulation to speed the drying process.

4. Remove wet insulation from crawl spaces (and the attic too, if wet).

5. Remove standing water from crawl spaces. Standing water will prevent floors from drying.

6. Open up any other wet cavities to allow air to circulate freely.

7. Finally, make every effort possible to speed the drying process.

Drying speed is relative to the thickness of the wood being dried, the humidity, the temperature, and the amount of air circulation. Heating the structure, if possible, will greatly speed drying. Use fans and dehumidifiers to help move the air. If heat or dehumidifiers are not available, open all doors and windows to encourage air circulation. Depending on conditions, the drying process can take from a week or two to several months.

How to Tell If the Panels Are Dry

The use of a moisture meter is the easiest way to determine moisture content. Panels are dry when the moisture content is 15Vo or less, and usually safe from the threat of decay when 207o or less.

Odor & Appearance

Mud may contain sewage or microorganisms. To minimize the possibility of odor problems, hose out all wall cavities and connection joints, such as between wall studs and bottom plates. Other common causes of odor are mold and mildew. To minimize this potential, thoroughly dry all concealed spaces.

Panels won't look as good as when they were new, but they should be serviceable. Because they are wood products, both plywood and OSB will swell, especially around the edges, and the surface will become uneven.

Localized blistering of plywood may be evident. (Raised or blistered veneer over knotholes and core gaps in the outer veneer of plywood aren't delamination. A core gap is an open veneer joint extending partially or completely through the interior of a panel.)

What About Buckling?

Floor panels may have expanded and buckled out of plane between supports. There are two ways your customer can remedy buckling:

Run a circular saw (set to the panel thickness) along the panel joints. This is called kerfing, and will help relieve the pressure that causes buckling. If tongue-and-groove edges are cut, they must be blocked from underneath. or a layer of APA underlayment must be installed over the top with the underlayment joints offset from the subfloor joints. However, kerfing and drying may not completely remedy buckling.

A second remedy involves installing blocking under the buckled portions of the floor to push the panels flat again. Follow these steps:

1. Enter the home's crawlspace or basement.

2. Identify the buckled area from underneath and measure the distance between the two joists that support the

WATER can leave oanels discolored with uneven surJaces or minor blisterino. but once the panels are dry, strength typiclily returns and only minor repairs may be necessary.

buckled floor section.

3. Cut a piece of lumber that is the same dimension as the floor joists (i.e., for a 2xl0 joist, cut a "block" from another 2x10).

4. Nail this support block to joists undemeath the swollen panel joint.

5. Go upstairs and "push" the panel flat again by nailing it to the block.

Rough Floor Surface & Squeaks

It may be possible for your customer to sand the panel face and edges with a commercial sander. Installing a layer of APA underlayment over the top usually will correct the problem. Offset all edges and nail to the exist-

ing panels with ring-shank nails.

Floor squeaks may arise from loose space created around nails in the floor panels. This is a result of the swelling and shrinking the panels experience in the wet/dry cycle. To combat squeaks, re-nail with ring-shank nails after the panels and lumber are dry. Squeaks may also arise in the crossblocking or bridging between floor joists and between walls and floors. Precautionary re-nailing at those points may be advisable if they will be inaccessible after the renovation.

Is The Plywood Delaminated?

Delamination is a separation of the individual "plies" or veneers in plywood. This condition is not common. Dry delaminated floor panels may feel soft or spongy when stepped on. The face ply may appear wrinkled. If you suspect delamination, walk over the areas of concern, after the plywood is dry. Panels with exceptionally soft spots may need replacement.

Localized swelling, or blistering over knotholes and core gaps. is not delamination and does not compromise the structural integrity of the panel. If necessary, blisters over knotholes may be repaired by injecting slue under the affected areas.

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JAS also available

3/8".....................4x8, 4x9 & 4x1 0

1 12".....................4x8, 4x9 & 4x1 0

5/8".....................4x8, 4x9 & 4x1 0

3/4".....................4x8, 4x9 & 4x1 0

FOB Mill- Chehalis

Specialty Applications

Solid lnnerplies. Wood Patch Only

Veneer Composer. Primed Panels Rail

UP or BN . Side Loading

Train your EWP employees

duces the engineered wood product family: categories, characteristics and quality standards.

UNIT 2 - Selling Engineered Wood explains engineered wood product features, as they relate to system applications.

UNIT 3 - Structural Wood Panel Grades & Applications explains the information shown in the APA trademark and how it relates to floor. wall. and roof construction. Also explains APA Performance Rated Panels, span ratings, exposure durability, grades and specialty panel definitions.

[TNCINEERED wood courses are I-llalwavs in session at APA's WoodUniversity.org.

APA developed Engineered Wood Basics for dealers, distributors and wholesalers to provide new employees the depth and breadth of knowledge for a successful career selling and servicing engineered wood products.

UNIT 4 - Glulam Basics, a primer on glued laminated timber, explains specification and application of APA EWS trademarked glulam.

UNIT 5 - APA Performance Rated I-Joist Basics is a primer on the composition, specification and application of APA Performance Rated I-Joists.

APA's website, apawood.org, is the place to turn for technical information, CAD details, product reports, and green building information.

MUTUAL PLYWOOD CORPORATION

'143 Maurin Rd., Chehalis, WA 98532

Fax 360-740-9570

Tracy Trogden. Kelly Srsen

Sandy Dembinski

(800) 562-6344

The five-unit course takes approximately five hours of "classroom" time to complete. Registration is free of charge and employees receive a completion certificate. The course units are described below:

UNIT 1 - Understanding Enpineered Wood Products intro-

With intensified interest in environmental impact and green building, it's important to consider the attributes that make wood a good choice for the environment. It's also important to understand how engineered wood products can be used to meet the emerging standards and requirements for green building.

heGrcen,

Wood is the original green building materiai. Consider the following:

Green for tife - In a crad.le-

to-grave analysis of identically constructed wood, steel and concrete homes, the wood home was more environmentally beneficial in terms of energy consumed, air/w aler pollution, waste production and global warming potential.*

Demand keeps it growingForest growth in the U.S. has continually exceeded harvest since the 1940s. We now grow 27 percent more t.imber each year than is harvested.

More product, less energlrCompare the energy requirements for manufacturing one ton of wood to one ton of other building materials. It takes..

.

5 times more energy to produce cement

. 14 times more energy to nrodrrr-e olecc r'"-*'* b'*'"

24 tirnes more energy to nrndrrnp ctppl

Nature's air purifier -

A2,400 sq. ft. house locks up 28.5 tons of CO2, or roughly 7 years of emissions from a small car.

Consortium For Research On Renewable lndustrial Matenals

l{ m: Iu n nnttti.}-r11t1$! !'p}*

Arm yourself with the facts

*2004

ono Is

Ray Brown, ex-Allweather Wood, is a new national account mgr. at Capital, Phoenix, Az.

Bitt Myrick has been named chief operating officer for ProBuild Holdings, Denver, Co. Robert F. Rugg. ex-Drake Group. is now president-gypsum.

Michael Krause has transferred from Parr Lumber, Woodland, Wa., to manage Parr's new yard in Tacoma, Wa. Tim Jeffries, Scott Ericson and Jason Behunin are overseeing regional operations and sales initiatives.

Thomas Gideon has been promoted to executive v.p.-forest products for Weyerhaeuser Co., Federal Way, Wa., succeeding Richard E. Hanson, who retired June 30.

John Hooper is now senior v.p.human resources, succeeding Edward P. Rogel, who retired June 30.

Jim Alexander, ex-Louisiana-Pacific, has joined the sales staff of Western Timber Products. Coeur d'Alene,Id.

Steve Snyder, ex-SCR, has joined the sales team at Action Wood Products, Brooks, Or.

Gordon L. Jones, Potlatch Corp., Spokane, Wa., has been named president and c.e.o. for the proposed spin-off of the company's pulp-based businesses.

Aaron A. Eberhardt, director of development and partner, Westwood Development Group, has been named executive director of the Hawaii Lumber Products Association.

Mark Long is the new sales engineer for the West at VacDry Kilns, Ridgefield, Wa.

Steve Fox is store mgr. of the new Lowe's Home Improvement Center in Bonney Lake, Id.

Don Oberg, branch mgr., ABC Supply Co., San Jose, Ca., was named a managing partner.

Todd Miller is now plumbing merchandise mgr. for Do it Best Corp.

Jeff Schulein, c.e.o. of 16-unit Crown Hardware, Huntington Beach, Ca., was elected to his third three-year term on the board of Ace Hardware Corp., Oak Brook, Il. Kane Calamari, ex-Robert Bosch Tool Corp., has rejoined the co-op as v.p.-retail operations. Ken Nichols has been promoted to sen ior v.p.-retail operations.

John McMillan, ex-Cox Industries, has joined PhibroWood, as technical service mgr.

Bob Loew has joined the sales staff of the engineered wood division of Finnforest USA.

Chris Beyer, ex-GP, has been named senior marketing director for Fiber Composites LLC.

Tenetec Naturals'" is appealing on many levels. Because it's made with rice hulls and recycled plasdc, and requires none of the preservatives or biocides that many woo&based composites use, it is an ideal choice for homeowners looking for green alternatives. But, the benefits of rice hulls dont stop there. Using hi$+ilica rice hulls in the composite mix gives you a very dease, durable deck board tha* naturally resistant to stains, molds and insects. Terratec was also developed as an building system, which makes installation easier. Terratec Naturals is available to retailers throughout the Northwest and Northern

California. Visit our website to learn more. To help kick things o6 we're includingTerratec Naturals in our 10% customer rebate deal. Homeowners can save up to $300 if they use our ExtraGreen' treated lumber for the under-structure. Simply have them enter "Sweet Deal" as their promotional code in the discount coupon form on our website. All that's required is proof of purchase. Offer good through 12-08, some restrictions apply.

l)ougl:rs P. Kintzingrr. c\cr'uti\c

r.p.'e .1'.o .l rld-\\'e n Iloltl irrrr. Klrrnurlh [jrLlls. Or-.. lrrs bccrt clcct ecl to tlrc'lrolrnl o1 lrttpcriul lntlLrstlics. I)onrplrno BclLtlr. I:1.. plLrcnt ot.l rrst Iiitc SLrppl,r.

I'. lizabctlr Vanl)crsurl lras bccrr nantcrl r .1t. ol !()\ L'r'r)nle nt irlIilr'\ lor the ,\nrclielrn Irolest & I'lrpcr' .\ssoeilrtirtn. \\ lrslrinc.torr. l).('.

A.A. ('Red" Emmerson. co-founder of Sierra Pacific Industries, Redding. Ca., was one of eight inaugural inductees into the Ncu California Hall of Fame.

Ittta (i<llltr:r' llls bccrr r-clcusctl rluc 1o l)o()r slllcs rcsrr llr at \lLrrtlLt : I;ttttgtt: l:rrt-cs1 J)totlucts. ('lirltil\. \r.. lteeortlrng [o r'() ouncts llttgh \lurtgt-ls lrrrtl l,'rctltlr Iiungus.

Arsonists Destroy Plywood

OlIie ills \usl)ce t lllrl lrlsrrni:l: lilc

rg:|ort:iblc lol rL .l Lr rtc I8 f irt tlrtLl

tlc:1r'or crl strrt l': ol plr ri ood rr orth

5+.650 plrr,rootl lrt llorec [-Lr nrlrer.

Nlissorrlrr. \lt.

Sr'\erlrl .jLrrtnilcs rtc|c scett ril tltc

lrcrr irt tlrc tinrc ol tlrc clrr'lr nrolnirrg

iir-e .lteeor-rlinS to litc tnrPettor (iortlr llrrrhcs.

Gunman Shops'Til He Drops

\n fi.l ) clrr oltl nrin rre e itlcntrrllr

sltot hintscll in tlrc lcl u hilc shoppirrr

lrl r\cc illrr-tlu lu'c. (ilccn Vlllc,r -\2.

l lre ctr:tonre r lrloLr!ht lrrs lcr olr cr

1o llrc lrarrlt iu c \lole \'1ar' l() to brrr

supplics to clclur tlrr sceltorr. l lrcn it cltschrLtsctl into lrr: louer lirltl lcs. Tlrc rrrin. tt lro sliirl hc uas urlil\\'lr'. thc gttrr $lts lolLrlccl. \\il\ trL-iltc(l rr1 th. sccnc lor thc \ari()u\ lrtrt nrrn lilc thrclrtcninu in.jrrlr

"The rc's rLlrsoltttcl,r l bc'lcli1 in nlrking elrrLrtu.': tlrrring rr rlort rtlrrln. As ortc of rltrt r cltrlott slrid. '.\ rlou nlrrln rs lL te rriblc lhinq to \\ r\lc. lt': crrsie r 1or c\cf\()ne Io Lurtletstrtttcl tltc nccrl

lirr- thc e lurrtqc t hcn tlr in l: ur.c l,'rr,:lt lrrrrl tlr. ri.k. ;rrr' lil\\r'r.

I- t tt r li lJlul;c. r'.c.r t.. I l r tnr L'

l)t' 1 tt,l. r't tttttttt' ttt i n q /o l l tt

ll Ltll .\trt'Lt .loLrt rtttl otr lri.:

t ltttitt .s \.1-ltiIIittrr |]t(rl\(()\'('t'

California Logging Continues To Fall

While harvesting of wood in California declined slightly in 2OO'7, the value of the harvested wood dropped by more than 10% from 2006, according to the California Forest Products Commission's annual state of the industry report.

About 1.625 billion bd. ft. of wood was harvested in California. down from 1.631 billion bd. ft. in 2006. However. the value of the harvested wood declined from $534 million in 2006 to $474 million in 2007.

"The decline in value outs further

pressure on California businesses in the forest products industry," said Donn Zea, CFPC president.

A consequence of the strain on fbrestland owners is that more land is being converted to other uses, according to a 2003 Forest & Range Assessment Program report by the California Resources Agency.

The report found that limited public understanding ol' management uctivities, low profitability for timber and livestock operations, and increasing resulatorv costs lead to an acceleration

of land use conversion.

"Ironically, the quandary faced by forestland owners comes at a time when the public benefit of fbrestland is more acknowledged than ever," Zea said. "Among the vital roles forests play is their ability to combat climate change by absorbing harmful carbon dioxide and other gases and harvested wood is the only renewable major building product."

Zea added that the amount of wood harvested continues to be near historic lows in California. Total harvested wood was the least since 200 l, the second-lowest harvest in the last 30 years, and 600/o less than what was harvested in 1990.

On privately owned land, California wood products companies harvested | .440 billion bd. ft., up from 1.431 billion bd. ft. in 2006, according to the California Board of Equalization.

On public land, 187 million bd. ft. was harvested. down slightly from 200 million bd. ft. in 2006 and just a fraction of the 1.3 billion bd. ft. harvested on public land, mostly federally owned. in 1990.

"Our federal forestlands remain overcrowded and at significant risk of catastrophic fire," Zea said. "While the industry has been able to partner with local and federal governments irr some areas to reduce fire risk through harvesting, unfortunately these are the exception."

One result of the lack of harvesting on our forestlands, he said, is that California continues to rely on huge amounts of imported wood to meet its needs. "California has abundant forests and the natural. renewable resources to help meet out wood product needs." Zea said.

Lumber Truck Hits Ambulance

A June l7 collision between a truck owned by Denver Lumber Co., Denver, Co., and an ambulance driving to an emergency caused minor injuries to two paramedics and an emergency medical technician.

According to police, the ambulance had its lights and sirens on when it tried to pass the lumber truck on the truck's left side. When the ambulance and truck came into contact. the ambulance slid onto its side.

Truck driver Karen Sherman said she never saw or heard the ambulance. "Can't do nothing but be shocked when you see something like that, and worry about if people got hurt," Sherman said.

Ironiln$ Ihe [o]Gh

Iarget matket for ttGated laminated columns will lH?-'::f L :'#?il il - r::'Tf.T:t:l'.",:

Orangeburg, S.C., has carved a nice niche for itself by pursuing more visible applications, such as columns for porches, trellises and decks.

Best known for its 10 Southeastern pressure treating plants, Cox expanded in 1991 with its purchase of a laminating plant.

"We saw a need for a structural pressure treated column that could be price competitive against solid timbers, aluminum, fiberglass and site-built products," said Don Hunter, leader of Cox's remanufacturing group. "We felt this product needed to be a load-bearing column utilizing the proper adhesive, gluing techniques, grade, aesthetics and kiln drying techniques. These critical steps provide a laminated timber column that is structural. functional and

COLUMN is built up in a box to create a central opening.

architecturally pleasing."

After extensive research, development and testing, the Cox Laminated Column was developed, with a host of advantages over solid timbers. They test up to 7O0Ea higher in strength, according to National Design Specifications. They're treated for

ground applications. They're kiln dried after treatment to greatly reduce movement, twisting and cracking after installation. They're ready to paint or stain immediately.

Most noticeably, rather than sandwich the boards face to face, Cox uses a high-performance structural glue to

bond four boards in a box, creating a hollow opening through which can be run electrical wire or even downspouts.

"New markets, product sizes, and uses continue to be developed," Hunter notes. "The future for Cox Columns continues to be one of growth and market penetration."

Cox competitor Great Southern Wood Preserving recently introduced its own hollow, laminated column for porches and decks.

*ryStill. other manufacturers- such as Universal Forest Products, Northern Crossarm, and Midwest Manufacturing-continue to target more utilitarian applications, such as dairy barns, machine sheds, garages and small commercial buildings.

"We believe the laminated column will continue to grow in popularity," said Northern Crossarm president Pat Bischel. "The many advantages of the column over the sawn timber will continue-straighter, stronger, lighter, often less expensive-and they will benefit from the increasing rise in energy prices. Columns are lighter and less expensive to transport and can be manufactured closer to the project site."

lll-tt1t 111,, ,teZii k

i:t)':'W,

The End Of The lunnel

(('rtrtlitttrLtl lt ()tIt l)dor I | )

rcgiunal banks arc.jLrst bcuinning tcl lccl thc pain. Follolr ing thc collapse ol tlrc nrortgagc-backccl sccuritics nlrrkct. thc srnallcr guvs uho clicl not participatc in thc madncss sccrnccl lcss r r.rlncrablc. Untbrtunately this is not trLrc. Thcv are faced u'ith clerclo1.l cr britlqc loans. traditional rnorlsalc l)oft1i)lios (rcmember thosc'.)). anrl cornnrcrcial developmcnts tlrat vr'ill nrean .'rtite clouns. "ualklru'lrys." lnrl clefaults -galorc. Thc lccLrlut()l's urL) s\\'ooprng in or.t nrolc antl nrorc lrlrpless banks thut clon't hur c thc cupital to adeqLrate-lr l'Lr nrl thcil loun loss rcscr\cs. \\'hcn thcir cupilul rutios drop bc)ori E'.i or'9'r look orrt lil- lt brtnch o1' scriotts-looLins !u\ \ in suits clcsccntling ott srnull tos ns anrl e itics I'ronr Orcgon to \\'csl \'ir'9iniu on ir Satuldal, . \'oLr e urr conlirnr thcir iclentill rrltt'rt lllr'-t ,rltl.t l)i//lt. lrr !o bcfilrc hclrl ing lirr thc locul bank. ('['nrc storl'.)

With all this goin-u on. \'ou ntav nonclcr w'hy I arn (rlildll ) optir.nistic. First. I anr u chronic contrarian. I lorik lirr. things thut rnost pcoplc clon't scc. Thc abovc-quoted statistic is thc stalt-

rn_s point. For thosc r'rho clrrr nlrkc it thlough the f irst two tluar.tcr.s ol '0t) ilnd man) \\'on't tlrcrc is u gootl possibilitr tlic bull nnlkct llc urc all pin ing lirr u ill stlrt in thc sccorrcl hall' ol' l(X)() lnr.l suthcl sterrnr in 10 10. lclcl ing 1o iilr lrll tinrc bu|n-bunrcr lilr con stfuetiolr lrr mhcr'. Aguin. I arn not lrrlccusting u big incrcasc in starts. I uoulrl bc Irlppr to scc l.l rtrillion in l0l0 lltcr l llut 1009 ut ulound 9.5().0(X). []ut uc hlrc hatl \trolts ntarkcts bclirlc at l.l rlillion starts. It'\ lull uborrt supplr.

With thc colr\tlnt trontbarclntcnt ol' nceirtivc hcadlines. it's easr to lirrccl ruborrt scr clal inrportant l'acts:

[-ilst: The Dleaclecl Bug. TItc pinc bcctlc is not *aiting tirl thc rrlrr.kc( lir irnprovc. It has inlcstcd r rrlLttllr rrll of the primc tirlbclllncl in thc IJ.(. intet'ior ancl is hcuiling sor.rtlr. F-r cn the B.C. !()\clnr)lr'nl ltlr..-irr'r ul) (,tl thc cight-ycar cvcle l'ietion. rrnrl is finallr nrovirtg irtto post rrpoclrlr ptic moclc lrt its usuul qlucill plrcc. Thc cr clc on lt\ cnrgc is thr-cc 1'cirls llont inlcction 1o uscless or-pr-otrlcrnutic lirr' eon\tIucti()n ILrnrbcr' Pr-0rluction. (|t e rLlr \ iu-\ lr bit duc to locul clirnatic eontlitions)

Sceonrl: Thc singlc llrrrill builclcrs

hlLr c in llo\t e ases lintitecl the ntsclvcs to pLrr'posc-bnilt hor-rsing or ve rv snrall startcr honrc clcr clOpnrents. Anothcr vcar of this shoLrlcl crcutc pcnt ul) tlcnrancl lor neu horncs

Third: The bigucst l'lr rn thc oint nrcnt is the knock on cl1cct ol rrurs :ire ittrcttl(,li\'\ irr llre t'ri.trrt-! rlirl ket. Hcrc rn Portluntl rr c e rrrr]d Ilrr c skalc(l the u olst cl1ce ts brrt I'or orrr' bclovcd contlo spccttlat()r\. \\ Ito surl cl lctl the nurrkct rr ith thoLrsunrls ol clrptics. Aguir). thcsc trr.c in thc l)ll)( ('\\ trl "lt'ttl-rirrll." \'l('irlill:' ll)r)lL' rcntlrl surpluscs in thc l)roccs\. 'l-ltt' re lrl tlt ii e t ol llr )ll\' lt'ir'! \ ill llris s1u!te is rrnsoltl invclllof\ and thc eontirtLrorrs ltcltlitions to this ntassi\c pilc ri ith lll thc lcscts. fureclosurcs lrnrl ri ulkuulLr s. Br.rt once this proccs\ hls lun its coLrrsc and the ungocl lr cr istinc inr cntorics have been eithcrlcntctl. clcrrolishcd or solcl. thcn thc sculcitr ol ncu honres n'ill takc holrl. 'l'lris u ill si-gnal the bottonr ol tltc liccl'all in honre prrcc-s us r,rcll. -fhis sccnario nrtrr c-,ccccl nr\ tinrclinc. but gir cn cr-lrrcnt cir-cuntstance\. Idon't thnrk so. Which brings rlrc to nr\ llrst elrrcul. tlrc (shr-rcldt--r. shukc ) qor crrrnrcnl. C'on gress. throu-lh thc prrslr-yrLrll ol irrtcr-

est groups, is doing its best to ruin the recovery of the credit markets. Short-sighted industries are screaming for bailouts when they should realize that the market needs to make its own way through this mess. Any move to ease the pain by government fiat is by definition a market distortion, with either short- or long-term unintended consequences. Note corn-based ethanol.

Lower short-term rates from the Fed should help many homeowners struggling with ARM resets. But no matter what the Fed or Congress do, many who are making payments on a house with negative equity will walk away anyway. It is basic human nature and no congressional fix will change that.

The bond markets are signaling higher long-term rates. But if, as I believe, the oil and food markets are being puffed up by speculators, inflationary expectations should ease in the coming months. But long-term rates will move a bit higher. Once the current panic, with its accompanying "flight to quality," cools down and oil corrects to a more sustainable cost, we will still be faced with the reality of higher energy prices. The 30-year mortgage interest rate shouldn't move beyond the high 6Vo,low 7Vo range and credit markets won't stay frozen forever.

In conclusion, if Barney Frank manages to get his housing monstrosity through Congress next year, get a new day job if any are available. If not, look for great rewards at the end of a long, dark tunnel.

- Mr. Krier is a 3)-year veteran of the lumber industry. Formerly president of Stora Enso Timber U.5., he is now president of JLK Global Inc., Tigard, Or. You can contact him at john@jlkglobal.com.

BORATE TREATTD WOOD

'Hi-bor' brand treated wood is a borate treated designed for interior house framing in Ha treated wood resists attack bv Fonnosan termite$ and numerous hbusehold o$4 rS F$a.ov.

r.FbrbT,s4m

'The only hidden

. Designed to work with all types wood composites, and plastic lumber

User friendly and cost efficient Resistant to oils, salt, insects, many acids & chemicals

Manufactured By:

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Distributor lnquiries Welcome

SrePROo brand interior fue r€tadaqt is the consrudion indusw's newest and most advanced ffre oroteOion srrtcnn for wuid. The unique FirePro dremistry ii a patart pe"diog formuldion tral conleins no phoqphomusbased com]nunds.

Glulam Tall Walls Tackle Oversize Windows

By Nate Traylor

When architect Bayliss Ward designed a home to feature a l4-ft.wide centerpiece window that reaches

the height of the lS-ft. vaulted ceiling, he knew the home would have mother nature to contend with.

The Bozeman, Mt., home meets code in an environment with extreme snow and wind loads-thanks in part to glulam. "Glulam is typically three times as strong and a third smaller than [dimensional timber] ," said Ward.

Engineered to bear the elements, the latest in glued timber technology is called upon when walls rise higher than l0 ft. and feature those large panoramic windows so common in homes with the views to justify them.

Typically called window walls, these large, expansive windows provide sweeping views and invite plenty of natural light. However, they are a building challenge. When framed with dimensional lumber, window walls can crack under horizontal pressure from extreme wind loads.

"This rarely has to do with the quality of the window," explained Jim Blair of Rosboro, the largest producer of glulam in the U.S. "Even windows with a lifetime warranty can crack if not properly framed."

Tall walls, those between l0 and 30 ft. high, are increasingly common in new home construction. According to the National Association of Home Builders, the market share for firststory tall walls was 5.98Vo in 2001. That figure jumped to l97o in 2006. The market share for second-story tall walf s was .98Va in 2001 and 9Vo in 2006.

"We definitely see an opportunity here," said Kerlin Drake, Anthony Forest Products. "Tall wall [constructionl is giving glulam a larger part in the specification process."

Capitalizing on the growing tall wall demand, savvy glulam producers are are rolling out products to meet

W.=, Bat t lstlc llal ltcrewsStalnless tteet Gomposlte

GLULAM SYSTEMS are a perfect match for extra-tall openrngs.

e trtlc lctlttit-ctttcttts lot ()\ ct'slze \\ lllrlou Ilrrntilrg. llosbolo. blLsccl irt ( )r'cLon's Willlrnrcttc Valler \\ its otlc ol tlrc lirst to nr()\,c on the trcn(l \\ Itclt it irrtrorluccrl thc Glulanr Tlrll \\ lll

Sr:tcrn. "\\'c siru a ncctl itt tltc nltr-ket lru rL plotl uct thut spccil'icrr llr

lurlrlrcssctl talI s alI constt-ttct iott ltttd lulsc u inclou fruntinc." Blair slitl

"T,rll rr lrll. :ttc lrr'r'(rlilitl.:' \'{}tllltl()ll

ltlacc lntl \\L- \\rult t() llr()\ irlc lt 1'rt-od Llct that gir cs rlcsiqnct\ ilttrl bLr iltlcrs

I)lrrl\' \\ itttlrr\\ ltl)rl .i,lirl- ,'l)liolt.."

Nlrirlc lronr lrtnrinlttctl l)otrgllts Iir.

the st stcnr r.rse s still. lottg colttttttts ancl hcatlcr-s lirr srcutct' llttcntl utttl r cttielLl t-esistuttcc. Ther (iltr llr rtt Tlll \\'lrlls Sr stcnr lllrte llcs clirttcrtsiottltl lLLnrbcr sizcs. ilcrttlcrs rtttttch r.rlrll t irlths. n hich clirrrirutte s thc rrcetl litr lrLlrol to l'i ll toids irr thc urrll. btr ilcl c\tr-il l rilnrins. rr- ittstltll atltlitionlrl ltilf(l\\ lll'c.

"( ilLrllln e olunrns lntl hcltlcrs u'ork ucll bcelrrrsc tlrcr clinrinalc the necd to nrril nrrrltigrlc picccs togcther." Blair slricl . '.lt noulcl tukc ninc picces of #r SI'l: rr.(r t() nlc.t thc stiffness ol a J Io 5 irrr'lr rlttl.rrrr .,'lttttttt."

SLrclr glulunr-basccl s\ stctrts sir c Ironrcorr ncrs thc option to sidc the ir' honrcs rr ith stt-tcco artrl othct' r'itlgctl c\tcrior f inishcs. Stucco. u ilh its hrittlc conrl:rosition. is knrtrr n 1o cntck. u hich invitcs ntoisturc into tlte Itotttc runcl creatcs rrold.

Aguin. this likcl-t'Ilts trtotc to tltr s itl'r thr-- stfr,lctr.llc ol' tltc rrltll nttltcr' thun thc clullitr rtl siclirrg.llccor(lilt! t() Bluir'. "\\'irrtlort untl sirlirtg tttttttrlttc trLlcs lcclrirc u ect-llirt tlcl'lcctiorr elitc rilr lor'llrcir'grlttrl ucls." Itc ttotctl "\\'lren rlinrcn:rortlrl Ittnrbct- is ttsccl. it's lr ploblcnr rurilinr. I'out'or l'ivc llicecs togcthcl to l)r'()(luec lltc ltropcr eolrr nrn thieknc:: thlrt's rccltrired tcr nrcct 1hc eotlc. \\ c rlcr cloltctl ottr glttllrnr eolrrrrtrts to clinrirtlitc this hurcllelrnrl nrcct tho:c:tliet cttcle rccluirc lllclrt\."

"Wc tlnt to Si\c bLrrlclels u 1tt-ocl ruct tltlt can nrittintize clrllblruks." ltltlccl []llir.. "Tall rr llls. stLrcco sirling. anrl crtll llr-Lc u inclou s il cutt bc rlonc u ith glLrlanr."

€S,t'

ood

Borate Pressure Treated Wood for Interior & Exterior Applications

Decking . Fencing ' Sill Plates ' Framing Lumber Floor Joists Log Siding Trusses ' Furring Strips ' Playgrounds ' Plywood Pre-Fab Wall Systems Moldings ' Flooring 'Wood Trim

;rnl'. i.,',i1" !.tii,,lii,'ffi)\h\,'

"4, #;*ix*r

Tools For Professionals

A full line of professional-grade cordless and corded power tools, accessories and abrasives are outlined in a free catalog from Metabo, (800) 638 -2261 : www.metabousa.com.

Easy Entrances

A portfolio of wood, fiberglass and aluminum-clad entry doors and accessories is profiled in a free brochure from Kolbe Windows & Doors, (800) 95 5 -8 111 : www.kolbe-kolbe.com.

Tips On SlPs

Specialty Hardware

More than 50,000 specialty hardware and complementary products are offered in a free 19-section catalog from Richelieu Hardware, (866) 83240 l0; www.richelieu.com.

Solid. Just like our support.

A 20-page, full-color PDF on the advantages, applications, design, and construction considerations of structural insulated panels can be downloaded free from APA-Engineered Wood Association at www.apa.org.

There are a lot of good reasons for using LP Engineered Wood Products. They're light, they're strong, they're easy to install, and they build the kind of solid houses that keep homeowners happy. And, no matter which products you choose, you can feel confident LP will back you with a network that resolves problems quickly, so you can focus on building your business. For more information on the full line of LP products, call 1.800.999.9105 or visit www.lpcorp.com.

Richelieu

Inspectors Descend On Yards

Several Northern California dealers and wholesalers have been forced to relabel products throughout their lumberyards following recent inspections by the California Division of Measurements Standards.

According to the Lumber Association of California & Nevada, the inspections have generally centered on plywood thickness, non-standard wood products, and non-wood products that use common lumber industry sizing in their product descriptions.

"If you have such products that may be labeled a nominal size that is not the same as the actual or net size, you might be advised to change your labeling on these products to reflect the net size," warned LACN executive Ken Dunham.

LACN is scheduling meetings with state officials and industry standards organizations to review "some of the considerations in sizing, such as green

vs. dry lumber, non-standard products, re-sawn products, and other issues."

The association is also soliciting details from members who have been inspected, to help others and present "a composite picture to the state."

BMHC Closing Truss Plant

Building Materials Holding Corp., San Francisco. Ca.. will close its KBI Norcal truss plant in Olivehurst, Ca., July 28 due to market conditions.

"That facility is operating way below capacity," said Mark Kailor, BMHC v.p. and treasurer. "It's an unfortunate set of circumstances, but if the market were still where it was, we wouldn't be doing this."

Some of the facility's 49 employees will relocate to other nearby BMHC operations, including a truss plant in Modesto, Ca., and a lumber distribution center in Marysville, Ca.

Kailor said that if the housing market rebounds, the plant could reopen one day.

Benefits

No visible fasteners on deck board face

Fasteners that are attached to the joists are hidden by the subsequent deck board

, The Hidden Linl{" system allows air to flow between the deck boards and the joist, enabling the joists to continually dry out (preventing the acceleration ol rot)

No expensive biscuit cutter required

No hammering Screws included 100 sq. ft. (16" o.c.)

Easy lnstallation

The Hidden Linl{. slides under the lastened deck board -

ry

Fasten the

ol The Hidden Linll" to the opposite deck board edge

tab

Push deck board down to rest on joist, tasten The Hidden Link'" to joist

!orily rness

Moving into the second generation

By Jennifer Pendergast

fT seems that almost every article labout family business points out the statistic that only one in three family businesses survives into the second generation. For those families aspiring to take their business to the second generation and beyond, this fact can be very scary.

Unfortunately. there is no one secret to ensure that you reach the second generation. Every business and family has unique features that determine what will make it successful. However, there are many things you can do to increase your likelihood of

success. They can be summarized under the four P's: philosophy, planning, people and policies.

Philosophy

Any business that hopes to make it beyond the first generation must decide on its philosophy of family business. Philosophy encompasses a number of important areas that a family needs to discuss together. First and foremost: Do we want to be a family business? If not, you can stop reading here. If you do want to continue as a family business, there are other areas of philosophy you need to consider, which include:

Why do we want to be in business together?

What role will the family play in the business?

What is the mission of our business?

Planning

Once you get beyond the philosophy questions, the next step is planning. Planning in a family business occurs in the arena of family as well as business. From a business perspective, having a long-term vision for the business is crucial. A common understanding of that vision across the first and second generations will allow a smoother transition.

One area of planning that receives a lot of attention is leadership succession planning. This is definitely an important area. But ownership succession planning can be just as important. While some members of the family may desire to create a multigenerational family legacy, others may not want to be part of the business. Developing a funded buy-sell agreement that allows family members to sell stock back to the business or other family members is important.

Retirement/financial planning is also important. If the first generation does not amass enough assets tO support retirement, the business may need to be sold. If the business has grown in value significantly, estate planning will be important as well.

To make the transition to the second generation, you need an estate plan that ensures that the stock of the business can be passed on to future generations without harming the cash flow of the business or the retirement of the first generation.

People

We cannot forget that the most important asset of the family and the business is people. To become a second-generation family business, you need second-generation family members capable of running the business,

or at least overseeing the business. A leadership development protocol, which outlines the steps necessary to develop next-generation leaders, ensures that the next generation can be effective managers and owners.

If there is more than one secondgeneration member, defining how the second generation will work together is crucial. A sibling code of conduct articulates how second- generation members will treat each other and outlines a process for resolving conflicts, should they occur.

Whether or not family members choose to work in the business, they are often owners of the business. So, defining ownership rights and responsibilities is important as a family business moves to the second generation. Questions to be addressed are whether or not all second-generation family members will participate in decisionmaking relative to the business, benefit from the business financiallv. have a seat on the board, etc.

Policies

Policies are guidelines that outline how challenges that may face the business will be addressed. The key is to develop these policies before the challenges are faced. Similar to planning, policies fall into both the family and the business arenas.

The most crucial business policy to develop before moving into the second generation is the employment policy. This policy outlines the requirements necessary to obtain a position with the company and defines how family employees will be treated versus nonfamily employees.

Equally critical is a compensation policy. This policy defines how family members will be paid for employment within the business as well as service to the family. It can also address how family business-related expenses are reimbursed.

A conflict of interest policy determines what to do if a family member or their spouse has a potential conflict of interest with the business. For instance, what, if any, restrictions will placed on information shared with conflicted family members?

In the family arena, another set of policies is helpful. A family decisionmaking policy outlines who may participate in family decisions (e.g., spouses, college-age family members), what decisions will be made in the family arena, and how decisions will be made (e.g., consensus, majority).

If the family holds assets together

outside the business, a policy on usage of shared family assets (e.g., vacation house, boat) can be very helpful. This policy addresses how decisions will be made concerning usage, sale or maintenance of the assets.

The Right Answer

You will notice that we have listed a number of areas that family businesses should address to successfully navigate the transition to the second generation. But, we have not said anything about what the content of your planning or policies should be. There

is no "correct" employment policy or leadership development protocol for a family business. The process of developing these policies is what is most important. Family members should discuss each of these areas until agreements are reached and documented.

- Dr. Jennifer Pendergast is a senior associate with the Family Business ConsuLting Group, Marietta, Ga.; (800) 551-0633. She can be reached at penderg as t @ efami ly bus ine s s.c om.

Reprinted with permission from the author from the Family Business Advisor, a copyrighted publication of Family Enterprise Publishers.

A growing number o1 deck failures have emphasized the need to build decks to meet code requirements just like any other structure. To help your customers build sate, code compliant decks, Simpson Strong-Tie@ introduces our new Deck Framing Connection Guide. The guide recommends structural connectors and provides best practice guidance based upon specific building codes.

Understanding the critical connections 0n a deck has never been easier.

To request a copy ofthe Deck Framing Connection Guide call (800) 999-5099 or visit www.strongtie.com/codeguides.

@2008 Simpson Strong-Tie Company Inc. DDR07

products

Earth-Friendly Sheathing

Thermo-Ply protective sheathing from Berry Plastics Building Group is reportedly environmentally friendly.

tates the mounting and demounting of the cargo bodies.

Purchasing additional cargo bodies for each truck can be more cost-effective than buying additional trucks.

- Please call (800) 254-3643 or visit www.demount.com

Wolmanized PSL

TrusJoist Wolmanized Parallam PSL from ilevel is desisned to withstand elevated moisture i=onditions.

The product is available in headers, beams, columns and posts.

LOSP Seal For Trimboards

Bodyguard End Seal was developed for use with LOSP-treated trimboards, sidings and mouldings offered by Bodyguard Wood Products.

The product is produced with polyvinyl alcohol-not formaldehyde, phenols, or asphalts.

Because it can be wrapped around corners and overlapped, it reportedly provides a tighter seal to the studs than plywood or OSB.

- Please call (970) 984-2862

Versatile Loading

Demountable Concepts Inc. offers a hybrid system of free-standing cargo bodies and smaller trucks that can increase delivery capacity, control fuel costs, and add to the range of services offered to customers.

Each truck's chassis is equipped with a lock-down system that facili-

It is reportedly ideally suited for unorotected exterior or wet-service applications such as decking supports, car?orts, cantilevered roofs, and shelters, and can be painted or stained with an oil-based finish.

- Please visit www.ilevel.com

Driving On Deck

The new Star Drive C-Deck screw from Screw Products works with both composite and treated wood decks.

Available in spray cans and quarts, the product reportedly protects end cuts against moisture, rot and termites better than a simple primer.

- Vi sit www .b o dy guardw oo d.c om

Tougher Hybrid Adhesive

Rhino Hide XFR adhesive uses a hybrid urethane and urea formulation to fill, bond and repair almost any material.

Its three-ring design reportedly eliminates mushrooming and material displacement, providing a flush, countersunk finish. It is available in #9x2l12" and #9x3" lengths in brown, gray, red and tan.

- Please call (877) 844-8880 or visit www .s c r ew o ro duc ts .c om

Designed to replace superglues, epoxies and putties, the product reportedly provides instant holding power, 30 seconds of adjusting time, and a curing time of five minutes. Unused portions can be stored and reused as needed.

- Please call (866) 347-4466 or vis it www.rhinohide .com

Timber-Tough Screws

Swan Secure's Timber Tamer screws are designed for timber framing, pole barn construction, log homes, gutter installation, landscape timbers, and ledger boards.

A hex-washer head and patented four-corner thread desisn allow the screws to be driven easily into dense materials. They are available in bulk

or l0 and 20 piece blister packs. Vis it www.swansecure.L'0m

PVC Adhesive

Versatex Fill n' Fasten can be used as a structural adhesive and to fill nail holes when installing cellular PVC products. ry:ri

Packaged in a single cartridge, the product has UV inhibitors and is tinted white lo match Versatex trimboards.

The adhesive is environmentally stable outdoors and can be used in a wet environment.

- P e as e vi s it wyvtt' .v er sat ex.c om

Laminated l-Joist

Nordic Eneineered Wood has introducecl a laminated solid-sawn

flange I-joist-the NI-90x-which won the "Coun de Coeur" award at the annual CoriTech Buildins Events Trade Show.

The product is manufactured of high-density black spruce with Nordic's Envirolam process, which minimizes waste.

* Please caLl (866) 817-3118 or visit www.nordic e w o.c o rrt

Electrician's Tool Kit

Gardner Bender has added 13 new professional-grade hand tools to its Circuit Alert collection.

New tools include three wire strippers, three pliers, an electrician's knife, three screwdrivers, two work lights, and a stand-alone voltage-sensor module.

Each contains an interchangeable, snap-in sensor with both audible (beeping) and visual (flashing) safety alerts.

- Please call (800) 268-4987 or v isit www .gardnerb e nder .c om

Sturdy lllumination

Stanley's Maxlife 369 tripod fl ashlight offers hands-free illumination.

ting to minimize power consumption when full illumination is not needed.

- V i s it www .stanleyw orks .c om

Wood Floor Adhesive

DriTac's 9100 Contractors Choice is a wet-lay flooring adhesive for wood floorins.

A wall-mounted recharging unit can recharse the three Ni-MH batteries in eight-hours, for up to four hours of continuous run time.

A three-position switch allows users to choose the most efficient set-

Available in l- and 4-gallon pails, the product is low-VOC, rebondable, requires no set-up time, and easily cleans up a damp rag.

- Please call (800) 394-9310 or visit www.dritac.com

Unfold & Load

The Fold-A-Cart was designed for ease of use and easy storage.

ruff.fimnrwhll*lrlrr.en

Tne^e,rens wlrH tNTEGRtw, TAKTNG CARE OF TOMORROW'S NEEDS TODAY.

THIRD PARTY INSPECTED

Unlike the traditional wheelbarrow, the cart folds down to less than 20Vo of its opened size so it can easily fit in a mid-size car or take up little space in a garage or shed.

- Please visit www.foldacart.com

Natural Tile Gollection

The Earth Naturals collection from GranitiFiandre offers through body, glazed porcelain tiles in a range of colors, patterns and sizes.

PRESSURE TREATED WOOD PRODUCTS Cusrrou TREATING - HEAT TnenTINe ISPM I 5 RAIL SERV|CE (BNSF)

Colors and textures evoke natural fibers such hemp, straw and flax. Available sizes include 12" x24", 4" x24", I 8"x I 8", I 2"x I 8", 6"x 1 8", and plus trim and decorative pieces.

- Please visit www .granitifiandreusa.com

as raffia, 24"x24", 12"x12",

Inspired Roofing

I ltltttt'. Itltl,it.' t1l1litl! tr'1lttt.tt'tll\

Itlts tlte ltLttltr'nlit lool. ol nirluritl \littc. ri illrolrt llri' lll!it trrsl lln(l ljr'ir\ \ rt.t-'lrl.

('r'ltllr'il lronr linrr'rlr,n!' iur\l \ il!ill

lf\tll\. tllt' tLrrrlltt! .0lllCs ln \r'\t'n \litllrl.1lil. :r'r t'tl lrlt'tltletl. lLrttl I 1 1t|c lltiiltll rol0r' lo tr,,,',,1.',,, 'ltl il Iit|!!' ()l iir\'llit.r'tullrl slt lt's.

l)ltrr:t rrrll l\l)l )tt)-l /l/\ "r \'1\11 ir \1 tt tttsltit t t rtrtlj11,q.' 1,111

Spray Foam Insulation ( !tl, ttt lr'ttl r ( r'tltt\|111r lr;1111 ll\Lllitll()ll l)cl1l: tirll:r't \ (' !'llL T !\ ilt rr,,l. lr',rr.,.,r1)l li,,r,.'r,.,,1 1r.,. rt.llr()rt \\ ttlt I ilrt't rlrr.' irrlrllrl tLrl.

.

()lIt'r't'tl in lrollt rrPcn lrrrti ulo.ctl trll IornrLtllrs. tir,' pr',rtlrre I e r'ail1a\ iltl ltil rtltl ltt tetliir't' lt'llkit.!t' in,'rt'tt lLtttl trr telrtlt lrtclrr:Ltr'lt lr: !it1lt(t(llill eci lirl!s. ktlcf \\ lrll:. lrttrl t rtol rltt l.:. Il ltlso rlittinrit.'. lrol lrrtl

Virgin Vinyl Fencing

Triple Crown fencing from Royal Outdoor Products is constructed of lOOTo virgin vinyl in a woodgrain texture.

Fred C. HolmesLumber Co.

We offer on extensive inventory of fine redwood products including Fencing, Decking, Siding, ond Premium Tinbers. Whether your order is by the piece or trucklood, our gool is fo ensure the highest quolity ond service.

CLEAR ALL HEART A/R SEASONED

HRT BEE

Two colors-Kanyon and Graystone-never need painting or staining and reportedly resist water and harsh weather.

Both 6' and 8' lengths are available in a tongue-andgroove design for easy installation.

- Please call (800) 488-5245 or go online at www. royalcrownltd.com

Fiberglass Entry Doors

New fiberglass entry doors from Peachtree simulate the texture and look of rustic alder.

K/TN DRIED

CLEAR AYE GREEN

BEE ROUGH & S4S

SELECT HRT

CON HRI

CON COMMON

Wholesale lumber products

Available in 6'8" and 8' heights, the collection is available in one and two panels with planks, one and two panel with arched planks, and one and two panel curved top-in single and double door options.

Optional finishes are Moorish and natural teak, rosewood, dark mahogany, provincial, and golden oak.

- Please call (800) 732-2499 or so online at www. Deachtreedoor.com

CUSTOM M/IUNG

AVAILABLE

SIZES FROM IX4TO I2XI2

Fred Holmes, Steve Holmes. Phyllis Hautala, Steve Hautala, John Gould

Nl5.'ffiBespecting

Manufacturers of 20 million bd. ft. monthly of 2x4 thru 2xl2 in lengths 6' thru 20' in White Fir . Douglas Fir . SPF-S . PP

Producing 2,000,000 bd. ft. monthly of 5/4 & 6/4 Ponderosa Pine Shop

4/4 Pine Board Programs and 5/4 Radius Edge Decking Programs

Sate€f-therArt Hewmill & Headrig Mill

Contact Sheldon Howell

Yakama Forest Products

3191 Wesley Rd., White Swan, WA 98952 rel. t5091 8t4-1163

2008 THE MERCHANT MacnzrNn 65

Finishing line Wyrndel

starts up fine-finis

n VER the last few years, manufac\-/turers of S4S boards appear to be pursuing one of two distinct strategies-either producing a low-grade board to compete on price or producing a surfaced l" product to compete on quality.

Wynndel Lumber Sales, Wynndel, B.C., has staked its future on the latter choice. The company has installed what it terms "the most advanced finish line for ESLP boards in North America," to become "the leader in both quality and efficiency of production."

The flagship of the new line starts up this month-a LMC 2008 Super Thundermac planer/moulder, reportedly the largest board moulder ever delivered to North America. The behemoth measures 9 ft. wide, 24 ft. Iong, and weighs over 80000 lbs. The 7200 rpm 20 knife heads will impart l4 knife cuts/inch on 1x4 through lxl2 ESLP eased edge boards. The control and precision hold-downs provide exacting tolerances.

The line is complemented with three slowdown grading stations. an auto-trimmer, end stamping for grade, and end waxing to eliminate end splits and improve yardability. Trim loss and machine defects are minimized. permitting Wynndel to target and maximize optimal tallies.

"We are not the first producer to enter into the arena of premium boards. However. we have invested over $6 million to put ourselves in the best seat in the house," says sales manager Dirk Kunze. "The moulder line is the crown jewel of the many upgrades made over the last half decade."

Previously, capital improvements

oard

had been targeted at the sawmill side of Wynndel's operations. The mill now produces over 70 million bd. ft. of high-end l" boards. The sawmill bin sorter has both quality and moisture

pulls, allowing the fiber to be directed to the proper end finished product.

In addition to board production, Wynndel also runs about 8.5 million bd. ft. of pattern stock through its

THf S SUMMER, Wynndel Lumber Sales is completing a facility for a new finish line (upper photo), includino the addition of an LMC Suoer Thundermac olaner/moulder (loweil.

Wadkin moulder. The facility currently operates at full capacity, but will benefit from the installation of a new Weinig Hydromat 2000, which should be operational by mid-September. The new planer/moulder will more than double its paneling output and allow expansion of its customer base in pattern and siding.

With in-house priming, Wynndel will also be able to target any of its specialty forest products through the vacuum coater line to output high-end trim products destined for wholesale distribution throughout the continent.

"All the upgrades made over the last five years have positioned us to continue well into our fourth generation as a family-run business," says owner/manager Michael Wigen. "The family has hired key management personnel to add to our strength and make us a force in the board market. We have greatly expanded our quality control right from our log breakdown to our paper wrapping. Automation and improved processes have given us the products to move forward with a greater sense ofpride and confidence."

Wynndel is also positioning itself to be a leader in the green building movement. "We don't need to find

new ways to use plastics and petroleum products to make decking and sidings or any other fake wood products," Wigen says. "Wood has a charm and a warmth that you can't get from extrusion."

Products include Wynnwood ESLP boards, Wynnwood Premium Fascia, Wynnwood Siding, Wynnwood Flooring, and Wynnwood Paneling.

Brite Manufacturing Shuttered

Brite Manufacturing, Canada's largest composite decking manufacturer, has closed after 30 years and is looking for a buyer.

In addition to Brite composite decking and railing, the company also produces plastic lattice, treated lumber. and cedar boards.

Production has ceased at its 50.000sq. ft. plastics facility in Bolton, Ont., and 30,000-sq. ft. pressure treating plant in South River, Ont.

"We've had calls from potential buyers, and we've made calls ourselves," said v.p. Andrew Rush. "We want to make sure that everyone we see as a viable potential buyer of the company is aware that we're on the market. and what we manufacture."

DOMESTIC

SALES: Jerry Long, Michael Parrella, Janet Pimentel, Pete Ulloa, George Parden, Vince Galloway, Steve Batick, Chris Hexburg.

INTERNATIONAL SALES: Nestor Pimentel, Oscar Portillo.

14023 Ramona l P.O. Box 989 l Chino, Ca.9l7I0

Richard Coale, Jim Sondergaard, Bill Leonard, Don Frank. (2) David Preston, Bandy Roget, Butch Carlson, Sheldon Doss. (3) Anthony Rossi, Steve Hautala, John Gould, Mel Miller. (4) George Perrault, Paul Nobman, Dan Lamar, Ken Womack. (5) David & Stacey Jones, Donn Zea, Bob Perna. (6) Jerry Mosier, Steve Stevenson, Mike Finck, Clark Wheeler. (7) Kent Bond, Breeze Cross, Greg Gomon, Duane Nelson. (8) Paul Herrfeldt. (9) Curtis Walker, Craig Sullivan, Mike Walker, Tom Holland. (10) Pat Zan,

mJohnTay|or.(11)Jef|Coffee,MikeArno|d,Mike -Griffin, Garry Tabor. (12) John Saunders, J.D.

Saunders. (13) Mario Barajas, scott swanson. (14)

(More photos on next page)

Don Zadrozna, James Letcher, Butch Gunter, Sean Barr.

TEE PARTY: Lumber Association of California & Nevada held its annual associates/dealers golf tournament June 5 in Fairfield, Ca. (1)

LACN GOLF (continued from previous oaoe): fil Rov Cobble. Chris Tritschler page): (1) Roy Cobble, Chris Tritschler, Jean Henning, Steve Page. (2) Dan Walker, Chuck DeStefano, Jefl Miller. (3) John Jeff (3) Sharp. (4) Craig Young, larry Zeiszler, Corey Dasaro, Scott Kassahn. (5) Adam Doss, Ryan Velliquette, Matthew Hunziker, Mike Graves. (6) Jay Silverstein, Buddy Wall, Bob Maurer, Paul Herrfeldt. (7) Chris Richter, Tom Von Moos, Carl Schoenhofer, Joel Hamel. (8) Steve Favier, Randy Raatz. (9) Bob Mion, Larry Stonum, Nick Elardo, Garv Merizwak.

BCI@ Joists, VTRSA-tAME Boise Rimboard

fiiiST.J,.i*+1"* P " 'a,'

UMPQUA VALLEY Lumber Association invited customers to lhe heart of Oregon's lumber country for its 1Oth annual mill week June 18-20. Mill sponsors were C&D Lumber, Douglas County Forest Products, D.R. Johnson Lumber, Roseburg Forest Products, and Swanson Group. (1) Scott & Kim Taylor, Linda & Charlie Carey. (2) Tim Beaudoin, Raegan Stralton, Jim Thomson, Laura Weber. (3) Haley Danskey, Sunny Field, Bob Hoyt. (4) J.T. Taylor, Lisa & Jess Thompson. (5) Brad Hatley, Leslie Boies, Alan Erickson. (6) Randy

Tnn Mn'ncnaNr Mlcnzrnp Jur-v 2008

Crockett, Betty & Bill Weist. (7) Kris Lewis, John Grove. (8) Pat Harris, Sarah & Cameron Krauss. (9) Joe Robinson, Paul Brooks, Brian Gordon. (10) Kelli & Jeff Johnson, Jenny & John Redfield. (11) Ron McCormick, David Miles, Patrick Ball. (12) Pat Myers, Rod Lucas, Hector Perez. (13) Regina McCracken, Frank Peterson. (14) Carol & Stan Cupp. (15) Todd Lund, Sondra Homeres. (16) Anna Mehl, Tiffany Mehl. (17) Rex & Michelle Burns, Sleve Loebner. (More photos on next two pages)

MfLLfNG AROUND (continued from previous page): (1) Rob Rowe, Todd Schoffstoll. (2) Matt Campbell, Greg Johnson. (3) Joni Hanson, Joe Allen, Ron Hanson. (4) Greg Nee, Eric Ford. (5) Matt Kolar, Ron Tiller. (6) Bob & Carolyn Crews. (7) Rick Deen, Chris Swanson. (8) Linda Reed, Gary Pittman. (9) Debra & Steve Swanson. (10) Lynda & Dan Hardwick, Sara & Jim Hunt, Jef{ Ostrom, (More photos on next page)

Pseudotsuga tuifolia

MILL WEEK (continued from previous pages) in Oregon's Umpqua Valley included a Hellgate jetboat excursion, dinner at the OK Corral Dinner House, and a goll tournament at Myrtle Creek Golf Course. (1) Trent & Brad Mehl. (2) Gregg Sutton, Art Reid. (3) Kim Caldwell, Glen Wilson. (4) Steve Bruggeman, Greg McOoy. (5) Samantha Cline, Frank & Nancy Daniels, Nicole Gallego. (6) Linda Reed, Gary Pittman. (7) Steve & Kim Weisser. (8) Chuck Ulik, Ray Barbee, Bob Berch. (9) Dar & John Stembridge. (10) John Strader, Robert Ewing. (11) Stancy & Kevin Daugherty. (12) Dennis Miller, Peggy Lund, Michael Swiger. (13) Mick & Michelle Baranko, Shelly & Paul Erickson. (14) Duane

Leavitt, Roger Krause. (15) Lee Greene, Julie Rogers, David Wright, Aly Callahan. (16) Jake & Darcy Crews. (17) Tim Hunt,

Jodi & Shawn Westbrooks. (18) Tanya Holloman, Laura Weber. (19) Kevin Lang, Kim Zacha. (20)Jody Brown, Alice Briggs.

Catherine "Pat" Quinn Ganahl, 84, a director of Ganahl Lumber Co., Anaheim, Ca., for over 40 years, died June 2 in Anaheim.

Her late husband, John Ganahl, served as president until his death in 1973, and her sons Peter and John Ganahl currently run the business.

Samuel E. Brown, 78, Mendocino County, Ca., lumber hauler, died June 16 after being struck by a car in Fieldbrook, Ca.

Mr. Brown was born in Eureka. Ca.. attended Arcata High, and served overseas with the Air Force after World War II. When he returned home, he was the chip truck dispatcher at Redwood Construction and shop foreman at Westlog Inc.

In 1983, he bought a truck and became a long-haul trucker, logs in the summer and lumber in the winter, and continued workins until his accident.

Ainsworth Family Loses Control

The founding family of Ainsworth Lumber, Vancouver, B.C., must cede control to bondholders under a new recapitalization plan.

"They are now a casualty of the struggling forestry sector," said investment analyst Kevin Mason. "They have lost control of their company."

Under the plan, the Ainsworths lost their 58% controlling interest and most of their equity. The eight family members involved in the firm have also lost their jobsalthough Brian Ainsworth, chairman and c.e.o., and Catherine Ainsworth, chief operating officer, will be retained as consultants for one year.

David and Susan Ainsworth started the company in 1950 with one portable mill at 100 Mile House, B.C. Their first sawmill opened several years later. The company branched into veneer in the 1980s and went public in 1993, using the funds to construct an OSB plant at 100 Mile House. Over the next 15 years, it grew into a major player

in the OSB market, with plants in B.C., Alberta, and the U.S. that employed 1,700 people.

However, when OSB prices began to fall and sales plunged from $1.2 billion in 2005 to $544 million in 2007 , the company was stuck with $1 billion in debt and shrinking cashflow. Under the recapitalization plan, Ainsworth's $823.5-million debt will be converted to equity in the company and $150 million in new 1l7o bonds. An additional $200 million in bonds will be issued to fund recapitalization and operating expenses.

Existing shares will be cancelled and replaced with new common shares. Existing stockholders will receive 4Vo of the new shares. Bondholders-headed by an investment fund, an investment group, and a bank-will own 967o of the new stock.

"This is a totally recapitalized and restructured company that was previously very highly levered and in doubt of continued success," said c.f.o. Robert Allen. "This properly recapitalizes the company and gives it enough liquidity to make sure it rides through the downturn."

Off-grade is now online

ploce

Rates: $1.20 per word (25 word minimum) or, if contains artwork or oversized type, rate is by the column inch (2-ll8 inches wide): $65 ifwe set the type, $55 ifad is fumished "camera-ready" (advertiser sets the type). Phone number counts as I word, address as 6 words. Headline or centered copy, $9 per line. Border, $9. Private box, $15. Send ad copy to 4500 Campus Dr., Ste.480, Newport Beach, Ca.92660, Fax 949-852-0231, dkoenig@building-products.com, or call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: l8th of previous month.

To reply to ads with private box numbers, send correspondence to The Merchant, c/o the box number shown. Names of advertisers usinc a box number cannot be released.

LUMBERTRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation.60Vo split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

PROGRESSM FOREST INDUSTRIES in Corona, Ca. Seeking experienced and motivated salesperson with excellent communication skills. Must have experience in lumber products. Free medical and 40lik. Contact Gres at (951) 213-94t4.

A Redwood IJEmplp_

A OIVISIOI OF PAC]FIC STAIES INDISIRIES INC

REDWOOD EMPIRE is a manufacturedbased distributor looking for experienced salespeople in wholesale and industrial with backgrounds in commodities, redwood, cedar, plywood, steel, pressure treated, exotic hardwood decking, exotic flooring, and imported lumber and fencing. Positions are available in Northern and Southern Califomia. Please send resume to Sean Burch, Redwood Empire, P.O. Box 1438, San Jose, Ca.95109-1438, email sburch@ redwoodemp.com.

www.redwoodemo.com

SAROYAN LUMBER COMPANY: Southern California's leading manufacturer and wholesaler of hardwood lumber, moulding and millwork, seeks aggressive Sales Management, Order Desk. and Outside Sales representatives. With a multi-million foot local inventory and state-of-the-art milling facility, we offer an unequaled level of support and earning potential to qualified candidates. A proven track record, extensive product knowledge, and personal integrity are a must. For confidential consideration, send resume to Robert Lemke, 6230 S. Alameda St., Huntington Park, Ca. 90255; (323) 589-5'704; RL@saroyanlumber.com.

WELL ESTABLISHED

Southern California

wholesale distribution company is looking for a sales management trainee. Candidate must have a minimum of 5 years experience in wholesale distribution of lumber and panel products. Solid communication skills and product knowledge are a must. Salary is commensurate with experience. We also offer medical and 401/k retirement packages. If you are a salesperson who wants to make the move up to management, or are currently in management and want to make a change, contact us at Box 708, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660; dkoenig@ building-products.com.

TREATED LUMBER SALESPERSONS

WANTED: West Coast wood treater looking for experienced salespersons with established customer base in Oregon, Washington, Idaho, California or Nevada. Salary plus commission, rnedical and dental benefits. Please send resume to Box 712, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660; Fax 949-852-0231 ; dkoenig@buildingoroducts.com.

SALES MANAGER

Shamrock Building Materials is seriously looking for the right individual to head up the sales staff at our Sacramento distribution and reman facility. If you know the Califomia and Nevada markets, and are willing to lead by example, this could be a financially rewarding position. We offer health and retirement benefits, and are anxious to make this venture successful. If this sounds interesting, give me a call or send your resume. Dave Gambee, president, (888) 1426763; Shamrock Materials, P.O. Box 80128, Portland. Or.91280.

Pole Buildings

San Antonio Construction Co. Contractors license 291 259 Bl Toll Free l-(877) 737-2303

Increase explsure of your compnny and products throughout the distribution channel,

Select the best advertising vehicle for your company to target-narket a particular region or market segment-or choose multiple publications to reach the entire industry, nationwide.

The frllerchant Magazi ne, 8S-year-old tnade magazino reaches LBM dealers and whofesalers West of the Rockies. Ihe Merchant Magazineis primarily a paid publication, ensuring high readership.

Tradels Preview: NAWLA Traders Market

Each year, a specialsupplement target$ LBM buyers in conjunction with each fall's NAWI-A Traders Market. The supplement is inserted into the October issues of both BPD and The Merchant, providing circulation of over 21,000. Discounted advertising rates include an expanded company and booth listing.

Deluxe lndustry Calendar of Events.

The Deluxe Industry Calendar of Events is packed wilh hundreds of industry events, encouraging buyers to retain and constantly refer to it throughout the year. Consequently, each month's sponsor receives a full month of exposure. The full-color, 12month wall-hanging calendar is inserted into the December issues of both BPDandThe Merchant. providing a circulation of 21,000+.

For rates and more information, contact Alan Oakes or Chuck Casey at (949) 852-1990

aioakes@ aol.com, ccasey @building-products.com

Sounrm Cnrromn

Hampton Distribution ...,(949) 752-5910

Kelleher Corp. (Ontario).............,.,.,..,.......,...(909) 635-1560

Kelleher Corp. (Rancho Cucamonga)...........(909) 476-4040

Kelly-Wright Hardwoods................................(714) 632-9930

North Pacific-So. Ca. Distribution,..,....,.,.,..,..(800) 647-6747

OrePac Building Products,,,..,.......................(909) 627-4043

Pacific Wood Preservin9..,,.....,.,...................(7 1 41 701 -97 42

Parr Lumber Co....... .....(909) 627-0953

Peterman Lumber C0............................,.......(909) 357-7730

Redwood Empire..... .....(909) 296-961 I

Reel Lumber (Anaheim)......(800) 675-7335 (71 4) 632-1 988

572-9029

Swaner Hardwood.. .......(818) 953-5350

Toal Lumber C0...... .,.....(562) 945-3889

Weyerhaeuser Building Materials... (8771 235-6873

ORANGE COUNTY & INLAND EMPIRE

All-Coast Forest Products..........................,.,(909) 627-8551

Anfinson Lumber Sales.........,.....,....,..,....,...,(951) 681 -4707

Austin Hardwoods & Hardware.....................(714) 953-4000

Bear Forest Products..........(877) 369-2327 \9511 727-1767

BMD (Riverside)..... .......(951) 341-0708

Boise (O.C.)............ .......(714) 255-1949

Boise (Riverside) ...,........,...(800) 648-91 16 (909) 343-3000

Building-Products.com ..................................(949) 852-1 990

California Timberline, lnc...............,...,..,........(909) 591-481 1

C&E Lumber C0...,. .......(909) 624-2709

Capital Lumber Co. . ......(909) 591-4861

Fontana Wholesale Lumber, Inc.............,.,.,.(909) 350-1214

Reel Lumber Service (Riverside),......,.....,..,.(951) 781-0564

Regal Custom Millwork.......(71 4) 776-1 673 (71 4) 632-2488

Heliable Wholesale Lumber, 1nc..,.,....,...,......(800) 649-8859

Simpson Strong-Tie Co. .....(800) 999-5099 (71 4) 871 -8373

Stone Castle Tradins ......,.(909) 466-6300

Taiga Building Producls ......,..,.,.,....,..,.,.,......(800) 348-1400

Tri-Rail Logistics..... .......(951) 780-6740

TristarTransload.... ,..,...(909) 823-3000

Weber Plywood & 1umber....,...,.,.,....,...........(714) 259-1 100

Weyerhaeuser Building Materials.,................(877) 235-6873

SAN DIEGO AREA

Anfinson Lumber Sa1es.....,...,.,....,.,..,.,...,.....(61 9) 460-5017

Austin Hardwoods & Hardware.,....,..............(858) 536-1800

BMD (Visalia).......... .....(559) 625-3050

Dixieline Lumber Co. .........,(800) 823-2533 (951) 786-9177

weyerhaeuser Building Materia|s,.,..,..........,.(877) 235-6873

Cedqr Products

lx4 B0ARDS in 4,5 ond 6'lengths

Soutttw;gt

2x4 MllS in 8-.|0' both rough ond surfoced

Cedor 4x4 POSIS in 4,5,6,7,8,9 ond l0'lengths

Cedor PIC|(ETS

2x2 cleor cedor BALUSTERS in 36, 42 ond 48" lengths

4418 NE Keller Rd., Roseburg,0R 9/470 . FAX541-672-5676 Don Keller, SolesMonoger . (54.|) 672-6528

Plcrrc Jlonrrwrsr

Collins Pine C0...................(800) 758-4566 (503) 227-1219

Disdero Lumber Co ......(800) 547-4209

Hampton Lumber Sales C0...........................(503) 297-7691

Louisiana-Pacific C0rp..................................(503) 221-0800

Lumber Products,... ......(800) 926-7103

North Pacific........... ......(800) 547-8440

OrePac Building Products..,.,..,...,..,,,,...........(503) 682-5050

Pacific Wood Preserving..,............................(503) 843-2122

Stimson Lumber..... .......(800) 445-9758

Thunderbolt Wood Treating.........................,.(503) 936-9976

Western Wood Products Association...,........(503) 224-3920

Weyerhaeuser Building Materials............ ......(8771 235-6873

ROSEBURG

C&D Lumber Co. {Riddle).,.,.............(541 ) 87 4-2241

Hoover Treated Wood Products....................(800) 531-5558

Johnson Lumber Co., D,R,,.,................... .......541\ 87 4-2231

Keller Lumber Co. ......641\ 672-6528

Riddle Laminators.. ......{541) 874-3151

Roseburg Forest Products...............,,........,,,(800) 347-7260

Rocxv tlournrns

COLORADO

Warm Spring Forest Products (Bend) ,.,........(541 ) 553-1 1 48

EUGENE / SPRINGFIELD

American Laminators (Drain) ...,...................(541 ) 836-2000

Cascade Structural 1aminators...,..,.,.,.........,(541 ) 726-9836

Coos Head Forest Products.......,..................(800) 382-3388

J.H.8axter.............. ...,..,(541) 689-3801

Lumber Producls..... ......(541) 687-0411

McFarland Cascade ......(800) 426-8430

Rosboro Lumber...... ,...,.(541 ) 746-841 1

Western Woods, Inc..................,..,................(800) 822-8157

Weyerhaeuser Building Materia|s..................(877\ 235-6873

MEDFORD/GRANTS PASS

Allweather Wood Treaters........,...........,.,.,.,..(800) 759.5909

Eagle Plywood Specia|ties........,...,....,.,.......(800) 547-5991

Lumber Products..,.. ......(541) 773-3696

MalheurLumberCo ......(541) 575-1148

Norman Distribution Inc.,...............................(541 ) 535-3465

Pacific Wood laminates..........,...,..,.,.,.,.,.,.,..(541 ) 469-41 77

Swanson Group Inc.....,,..,..... ..........(541 ) 956-4300

Waldron Forest Products.........,...,..,.,.,.,.,.,....(541 ) 474-3080

McMINNVILLE / CORVALLIS / SALEM

Capital 1umber...................(541\ 223-0020

Forest Grove Lumber Co....,

Mary's River Lumber...........

Royal Pacific Industries.......

Weyerhaeuser Co, (Albany)

DENVEF

Allweather Wood Products...............,.........,,,(800) 621 -0991

All-Coast Forest Producls,.,.,..,..,..................(800) 332-8977

American Institute of Timber Construction ....(303) 792.9559

BMD (Colorado Springs)...............................(917) 528-6000

BMD (Denver) ..............(303) 427-9333

Boise Distribution... ......(303) 289-3271

Capital Lumber Co.. .....(303) 286-3700

OrePac Building Pr0ducts.............................(303) 363-1300

Weyerhaeuser Building |V|ateria|s.,................(877) 235-6873

GHAND JUNCTION

IDAHO

453-8358

COEUR D'ALENE

Bennett Forest Industries (Coeur d'Alene),,..(208) 664-3299

Braided Accents..... ,,....(866) 440.9663

LEWISTON Bennett Forest Industries (Grangeville).........(208) 983.0012

coos Head Forest Products.........................(866) 590-0088 (208) 799.3388

MONTANA

BILLINGS

Boise Distribution... ......,(406) 652"3250

Lumber Products.... .....,.(406) 522.0435

Weyerhaeuser Building Materia|s..................(877) 235-6873

OGDEN

UTAH

OrePac Building Pr0ducts,,........,..................(801

FAX to 949-852-0231

or call (949) 852-1990 or mail to BPD, 4500 Campus Dr., Ste. 480, Newport Beach,Ca.92660

Name (Please print)

Phone

Want to Subscribe?

tr I Year ($22) tr 2 Years ($36) tr Bill Me E My Check tr 3 Years ($50) ls Enclosed

News or Comments? we welcome comments on articles or news ofyour company such as new hires or expansions. Just email dkoenig@building-products.com or Fax this form to 949-852-0231 :

For more information from adverlisers, use the Web site in brackets

Anfinson Lumber Sales [wwwanfinson.com]

APA-The

Forest Grove Lumber Iwww.fglcocoml ..........................................'.......7

Ipe Clip Co., The [www.ipeclip.com]

J.M. Thomas ForestProducts Iwww.thomasforestrom]

Keller Lumber Co.

KK Manufacturing [www.lumberloccom].....

Krauter Storage Systems [wwwftrauter-storagecom] ...................,.,.29

LP Building Products IwwwJpcorp,com].......,...................................'....4

Matthews International Iwww.woodmarkingcom]...........-'--.-.........61

McFarland Cascade Iwww.mcfarlandcascade.com],.,......,...................46

Norman Distribution Inc. Iwww.normandist.com]...............................69

OSBMarket by Silvaris Corp. Iwww.osbmarketcom]..........'..............73

Osmose [www.osmose.com]....,,.--.-.-- ,,........'....Cover I

Pacific Wood Laminates [www.pwlonlinerom]......,...,,........................10

Pacific Wood Preserving Cos. [www.pacificwood.com]......................33

Parr Lumber

Roseburg Forest Products [www.rfpco.com] .....41

Royal Pacific Industries........ ..............53

Simpson Strong-Tie Iwww.strongtiecom] .........................'..'...'...........59

Siskiyou Forest Products [wwwsiskiyouforestproductscom]............35

Sitra Holdings [www.sitraholdings.com] .-.....-..........34

SkuttleTight Inc. [wwwskuttle-tightrom] ......,..,..,...,.62

Summit Imex [www.cumarudeck.com].. ..-.---.-........64

Sunbelt Iwwwsunbeltracks.com] ............23

Superior Wood Treating Iwwwsuperiorwoodtreating.com]..............57

Sure Drive USA [wwwsuredrive.com] ........'..........'...57

Swan Secure Products [wwwswansecure,com] t7

Swanson Group Sales Co. [wwwswansongroupinccom] ...................37

Taiga Building Products Inc.................... ............'..'...'56

Thunderbolt Wood Treating Iwww.thunderboltwoodtreating.com] ..49

TMI Forest Products [www.tubafor.com]........ ..........52

Tri-Rail Logistics .................................13

Tristar FLC Inc. [www.tristarflccom] '..-.......'.33

Universal Fastener Outsourcing Iwww.91 I -nails.com] .......................54

Utah Wood Preserving Co.....,............... .....................'..19

Vaagen Bros. Lumber Inc. [www.vaagenbros.com]......,......................49

Van Arsdale-Harris Lumber Co...................,. ..............62

Western Wood Treating [www.treatedwood.coml .....,,,,..........Cover III

Wood Treatment Products [www.eswoodtreatment.com]...'.'............55

Wynndel Lumber Iwww.wynndellumber.com]...,.............................'..'47

Yakama Forest Products [www.yakama-forest.com]...........'.'."..........65