titive ligence Survival of the fittest

By Carla Waldemar

four outside salespeople on the road, with two more in inside-support staff. Each salesperson takes everything from start to finish on a programbringing in the plans, doing the free estimates, on to placing orders, the follow-up and credits. They deal with a contractor's customers for him, too: they answer questions as they come up. This builds relationships and the element of trust that comes along with that. And, once established, those relationships are pretty hard to beat!"

Along with strong independents, there's a Lowe's in Brunswick and a Depot even closer. But Downeast separates itself with both inventory and sbrvice. "Contractors can drive up and park 50 feet from the door. We help load their vehicles and show them where things are; this is not a big cavern. We hear a lot from our customers that 'Everybody knows me here, and I know everybody.' They see the same people tomorrow and the next dayno surprises.

II/HEN folks cheered, "Many V V happy returns!" they weren't just talking in the wind. Downeast Energy & Building Supply, owned by the Morrell family since 1908, celebrated its l00th anniversary last year with plans to stand tall in its community for many years to come. And there's a fourth generation of Morrells in training up there in Brunswick, Me., ready to make good on that promise.

The company was founded in 1908 as Brunswick Coal, but soon firewood, lumber, oil and propane joined the mix. A separate Building Supply Division took roots in the '80s, after a disastrous fire "took the whole place down," recalls Peter Bernier, v.p. of the division. "We rebuilt the store and warehouse and made major changes."

Today the division counts 40 employees in addition to the office staff, IT crew, and marketing and training departments it shares with the larger Energy Division, with its 13 outposts in Maine and New Hampshire, allowing the Building Supply force to do what it does best-and that's sell sticks. "Our customers are 75-807o contractors, and that's the way we like it-or, liked it," Bernier amends with a rueful joke when faced with the current economic uoheaval. "Most of them built two or three houses a year, but, while there's still some new-home activity, they've turned to remodelins."

And that's another niche in which Downeast is well-prepared to help them. The operation boasts a Kitchen Display Gallery, whose staff stands ready to walk a contractor's own clients through their choices, saving the pros both time and patience. The adjoining millwork displays provide margins as bountiful as the choices. "Well, at least they used to," Bernier laughs again. "Even those are more competitive today."

No surprise. In fact, local competition, always vibrant in Maine, has become "even more intense," he notes. But Downeast maintains a strong distinction. "Operationally, our biggest difference-and plus-is that we have

"We carry everything they need, from lumber and plywood to hardware, power tools, Benjamin Moore paints, and Andersen windows. We have two boom trucks for their convenience (costly to purchase, costly to maintain," Bernier adds). "We offer free deliverywhich is even more challenging these days," he points out, "because we're reaching farther away, looking for business."

It helps that the Energy and Building Supply divisions are adept at at cross-marketing. "We play up each other's advantages. We also do a fair amount_of print advertising-not that it reaches our pros, but it gets our name out to the community, and it pays off. It's happened a number of times that a pro comes in and says,

'I've never done business with you, but my client insisted!' After we show them what we can do for them, they're back as some of our better customers."

Downeast takes proactive steps to make them feel valued-everything from hosting weekly, vendor-sponsored barbecues in the summer to contractor cruises with over 150 customers sailing Casco Bay, complete with dinner and band. The company also invests in inviting and transporting them to industry shows and staging green building seminars. "We get a full house, which we can hold in the conference area of the Energy Division, which is otherwise used for staff training," says Bernier. And Downeast's own IT staff also offers customers training on business skills, such as computer software.

The staff is long on tenure. "I started here myself in 1978, right out of college," attests Bernier, and he's not alone in that boast. To foster retention, "We give awards and celebrate years of service. We also offer training in such skills as customer service. using a company in Portland we have on retainer. Right now, we're offering a course in personal development to 25 individuals in things like presentation skills, how to do a PowerPoint."

Indeed, Downeast not only believes in education, it walks the talk. Every year it awards multiple scholarships for children of employees to further post-high school studies. In addition, it offers additional scholarships to kids unaffiliated with the company with interest in careers in the building supply and energy industries to continue their post-high school education in community colleges.

To spark that interest at an even earlier age, the company hosts full-day visits to its yard for area high school classes. called JMG (Jobs for Maine Graduates), to introduce them to job opportunities. "The kitchen department will explain how a designer works, and the yard will show them what a driver does," Bernier says. "We give demonstrations on safety, have speakers about various job functions, and end up with pizza. We emphasize that there are good jobs out there that don't necessarily require college-plenty of opportunities. While we don't know if it's paid off in future employees directly yet, we feel it's a community service, and lets them know that not every student has to mainstream to college."

Downeast also takes a lead in com- munity service, thanks to the Morrell family's generosity. "We help on library, hospital and church building or renovation, and also in donations of our time. I'm on the board of the United Way, for instance," he adds. "For years, the family wanted donations to remain anonymous, but when folks insisted-'You should tell people!'-they decided that wasn't such a bad idea. after all."

Today, the firm sponsors displays in local home shows and joins in Maine's Green Collaborative Effort, educating consumers in savings to be made in energy and advances in green building products.

Sure, Downeast is feeling the pain of the times. But it has not laid off a single person. Instead, seeing the way the wind was blowing as early as two years ago, the company started examining savings possible through job attrition. "Plus," Bernier adds, "also having an energy company allows us to spin off our Building Supply drivers to them during the winter."

Nonetheless, "we're feeling the crunch in every way, and our community has been hit especially hard. A local Naval Air Station is slated to close, which means losing a big piece of the community-700 housing units on base plus other homes up for sale as people move out," he says.

"Fortunately, Downeast is well established and doesn't carry a lot of debt. We're very careful of spending, so we can withstand this for a long time. We did see a little spike in the past three or four weeks, but those will come and go. Summer is flat, but that's okay. But next winter will be very difficult around here. I'll be surprised if all the players are left standing a year from this time...."

Expect Downeast, however, to be standing tall.

- A former award-winning LBM trade magazine editor, Carla WaLdemar writes frequently on the industry. Contact her at cwaldemar@ comcast.net.

Lrrrrrrns

Orchard Supply Hardware is remodeling the former Yardbirds store in Fairfield, Ca., and hopes to open this fall

Friedman's is considerins a site in Petaluma, Ca.,long eled by It)we's, to open a new store by fall 2010...

Do It Yourself Center was denied city council approval to move into a vacated building near two hardware stores in S. Lake Tahoe,Ca....

Ace Hardware held a June 12 grand opening for a new 10,000sq. ft. store in Ferndale, Wa.; Gordon Merritt, owner ...

Ace Hardware has broken ground on a 14000-sq. ft. store in Tacoma, Wa. ...

Ace Hardware expects a fall opening for a 12,560-sq. ft. store north of Spokane, Wa. ...

Habitat for Humnnity applied to open a ReStore discount LBM outlet in Powell, Wy., and has moved its North Bend, Or., branch to a larger facility ...

Home Depot opened a new store June 11 in Firestone. Co.-one of only five new Depots set to open in the U.S. this year (Randy Quam, store mgr.)

Home Depot has pushed back completion of a new distribution

Send us your news!

Have your recent expansion, promotions or other company changes published in the next issue of Ihe Merchant Magazine. Just email your news to kdebats@building-products.com or Fax to 949-852-0231.

(a free seruice) center in Redlands, Ca., to next year and has sold its six-month* old, 657,000-sq. ft. distribution center in Tracy, Ca., to US Industrial REIT III, but will continue operating from the facility on a 15-year lease ...

Lowe 's unveiled a new store June 12 in Pacoima, Ca., and is ready to break ground on a 94,OOOsq. ft. store wtih 26,500-sq. ft. garden center in Hobbs, N.M., for a 2nd quarter 2010 opening

Lowet applied to build in Vallejo, Ca., and received approval of an environmental impact report to build a 111,196-sq. ft. store with 27 ,72O-sq. ft. garden center on 10.7 acres in Sonora, Ca.

Hills Flat Lumber Co., Grass Valley and Colfax, Ca., has been Forest Stewardship Council chainof-custody certifed by Scientific Certification Systems ...

Wuor:srurs/trrutrtrurrrs

Inland Timber, San Bernardino. Ca.o was closed June 30, two months after the 28-year-old wholesaler moved to a new site (see story on additional closures by sister company Stock Building Suppy, p.25)

Plum Creek mothballed its Evergreen, Mt., stud mill and stud remanufacturing plant for an indefinite period starting June 26 and cttt 23 of 130 jobs at its sawmill in Columbia Falls, Mt. ...

Hambleton Lumber Co.. Washougal, Wa., suffered an estimated $250,000 in damages in an early morning fire June 25 that destroyed its debarker ...

EcoBlu Products, Carlsbad, Ca., is leasing a 3.6-acre former lumberyard in Prosper (Dallas), Tx., to open an engineered wood component manufacturing/coating plant and regional office ,..

Boise Cascade, Boise, Id., has agreed to acquire substantially all of the assets of Kinzua Resources' sawmill inPilot Rock, Or. ... Boise has achieved Sustainable F orestry Initiative chain-of-custody certification for all Boise Engineered Wood Products plants across North America

Timber Products Co.'s particleboard plant in Medford, Or., earned Forest Stewardship Council chain-of-custody certification through Scientific Certffication Systems ...

Aznx Porch T&G cellular PVC porch planks have been classified for fire hazard areas bv the state of California ...

Contact Industries. Clackamas. Or.. earned ISO 9001:2008 certification from National Quality Assurance, USA and was recertified under the Forest Stewardship C ouncil's chain-of-custody program by Scientffic Certffication Systems Contact has added Atlanta Hardwoods Corp. subsidiaries White County Mouldings and Hardwoods Inc. as distributors in the Southeast ...

LifeTime Composites LLC, San Diego, Ca., has enlisted Duraforce Inc.,Fort Mill, S.C., to distribute its decking and fencing in the Southeast

BlueLinx is now distributing A-E.R.T.'s MoistureShield and LifeCycle composite products in Alaska, Washington, Oregon, Idaho, Montana, Wyoming, Utah, Colorado and Hawaii

Deadlines Engineering Inc., Morro Bay, Ca., launched two new websites: www.fixmytruss.com and www.fixmyjoist.com ...

Housing starts in May jumped 17 .2Vo to a seasonally adjusted (Please turn to page 41)

Join the 2009 Gtobat Buyers Mission and find new sources of - high quatity, competitivety priced wood products inctuding buitding products, speciatty lumber & remanufacturing products from Canadian manufacturers.

Listings are often submitted months in advance. Always verifi dates and locations with sponsor before making plans to attend."

Furv

Mountain States Lumber & Building Material Dealers Association - July 13, golf tournament, Ranch Golf & Country Club, Westminster, Co.; (800) 365-0919.

North American Retail Hardware Association - July 13-15, annual convention, Marriott Rivercenter. San Antonio. Tx.: (317) 290-0338.

InterSolar North America - July 14-16, Moscone Center, San Francisco, Ca.: www.intersolar.us.

Temperate Forest Foundation - July 14-17, teachers tour, Corvallis, Or.; (503) 445-9472.

Western Building Material Association - July 15-17, mid-year board meetings, Leavenworth, Wa.; (360) 943-3054.

AWFS Fair - July 15-18, Las Vegas, Nv.; www.awfsfair.org.

Lumber Association of California & Nevada - July 17-18,2nd Growth summer conference, La Quinta Resort & Club, La Quinta, Ca.; (800) 266-4344.

Inland Empire Hoo-Hoo Club - July 22, speaker meeting, Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842.

Portland Hoo-Hoo Club - July 24, golf tournament, Forest Hills Golf Course, Cornelius, Or.; (503) 64'7 -501 1.

Moulding & Millwork Producers Association - July 28-Aug. 1, summer meeting, Naples, Fl.; (800) 550-7889.

Rogue Valley Hoo-Hoo Club - July 30-31, dinner & golf, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.

Auousr

Humboldt Hoo-Hoo Club - Aug.7, golf tournament, Baywood Golf & Country Club, Arcata, Ca.; (707) 268-3082.

Paulina Hoo-Hoo Club - Aug. 7, golf tournament, Meadow Lakes Golf Course, Prineville, Or.; (541) 325-1893.

Mountain States Lumber & Building Material Dealers Assn.Aug.9, golf tournament, Riverton, Wy.; (800) 365-0919.

National Association of Women in Construction - Aug.26-29, annual convention, JW Desert Ridge Resort, Phoenix, Az.; (800) 552-3506.

Remodeling & Decorating Show - Aug. 28-30, South Town Expo Center, Sandy, Ut.; (818) 557-2950.

Remodeling & Decorating Show - Aug. 29-30, Pasadena Conference Center, Pasadena, Ca.; (818) 557-2950.

Srnrmrrn

BC Wood - Sept. 10-12, global buyer's mission, Whistler Conference Center, Whistler, B.C.; (877) 422-9663.

Horizon Distribution Inc. - Sept. 12-13, annual market, Yakima Convention Center, Yakima, Wa.; (800) 541-8164.

Hoo-Hoo International - Sept. 12-15, annual convention, Harrah's Hotel & Casino, Reno, Nv.; (800) 979-9950.

RISI North American Forest Products Conference - Sept. 1416, Westin Gaslamp Quarter, San Diego, Ca.; (212) 537-9130.

North American Wholesale Lumber Association - Sept. 14-17, wood basics course, Salbasgeon Suites & Conference Center, Corvallis, Or.; (847) 870-7470.

Willamette Valley Hoo-Hoo Club - Sept. 16, trap shoot, Sportsman's Club, Creswell, Or.; (541) 485-5979.

Door & Hardware Institute - Sept. 16-26, annual conference & expo, Gaylord Palms Resort, Orlando, Fl.; (703) 222-2010.

Jensen Distribution Services - Sept. l7-l9,fall market, Spokane Convention Center, Spokane, Wa.; (509) 624-1321

Western Wood Products Association - Sept. 18, Lumber Pioneers annual meeting, Monarch Hotel, Clackamas, Or.; (so3) 224-3930.