Merchant Magazine - August 2009

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August 2009

building products retailers and wholesale distributors in 13 Western states-Since 1922

AUGUST

Up? Indurtry economlrr moh the cose for rcbound ln hourlng rtoilr

tlo*et P\lC trlmboodc for Innovotlve oppllcoflonr

Uses ore endless: window boxet postt louven, cobinett jombs, even interior millwork.

Sporldlng nldre Sell mlllwo*forwlne

S.nlng 13 Westem Stato3, IncludlngALrk and llrw.ll

(Sister publimtion Building Produ$ airP..st seryes the East)

PUBLISHER Alan 0akes (ajoakes@aol.com)

PUBLISIIER EMERITUS David Cutler

EDIT0R David Koenig (dkoenig@building-pr0ducts.com)

ASS0CIATE EO|TOR Karen Debats (kdebats@building-products.com)

C(lIITRIBUTINO EDIT(lRS

Dwight Cunan, James 0lsen, Carla Wddemar, Jay Tompt

AD SATES MAI{AGER Chuck Casev (ccasey@building-prodfcts.com)

ClRCUtATl0l{ Heather Kelly (hkelly@building-pr0ducts.c0m)

AOiIIIIISTRATIOI{ OIRECTOR/SECRETARY Marie 0akes (mlpoakes@aol.com)

How to Advertise

Conlacl 00r adycrllslng ofliccs for ralos: WEST, illOWEST, S0UTIIEASI: Chuck Casey, Newport Beach, Ca.; (9{9} 852-1990; Fu 949-8520231 ; Email ccasey@building-products.com

IIORTHEAST: Paul Mummolo (N.J.); (732) 8998102; Fax 732-899-2758; Email mummolop@ c0mcasl.net

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Serving building products retailers and wholesale distributors in 13 Western states-Since 1922

lli-bor'

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FfreK'

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Advance Guardo borate pressure treated lumber is recommended for sill plate, funing strips, joists, studs, roof trusses, blocking, rafters, beams, and other framing applications. Advance Guard is also recommended for fascia, trim, wall sheathing, roof sheathing, and sub-floors. Advance Guard borate pressure treated lumber is also backed by a lifetime limited warranty*.

Who's not listening?

The other day, a wholesale buyer mentioned to me how short-tempered customers seem to be lately. When I brought this point up to another business owner this morning, he said the same people who were always short tempered who had now gone a few steps further up the explosion meter. My sense is that we are all under much more business and personal pressure than ever before, and even the smallest things that go wrong seem large.

Whatever the situation, the one thing I know that I have to learn to do better is what we used to teach in sales training-practice that silence is golden. The biggest complaint about sales and customer service people is that we do not listen. Most salespeople would argue that buyers are only interested in price, discounts, quality and service. But according to a recent survey, number one on the list is that salespeople talk too much and do not listen enough. And that same survey showed that this has been the No. I issue for many, many years.

At no other time is it more necessary to shut up-taping your mouth shut to allow for only the occasional nod and grunt of understanding-than when a customer has been wronged or thinks he has been wronged. As none of us can stand to lose too many customers today, we need to understand what the issues are before we can start

solving the problem. Indeed, the temptation is to listen to a complaint and jump straight in to answer why, what and how. But after allowing the customer to speak, the real answer is to still keep quiet and nod. What you often get after a long bout of silence is the real answer to what the issue is, because the customer cannot stand the silence and starts off again and the real truth comes out. The reason why silence is golden is that most of us have real trouble with mouthing off, so we skirt around the real issues. Then when there is a silence, we think we need to chime back in. Let it not be you, as this is when the real issues surface.

Early in my career, all too many sales calls began with me introducing myself to the store manager, and then being directed to take my sales bag and myself out of the store-sometimes not so politely. I have even had dogs set on me! Now I knew it could not be me and something must have happened in the past especially when I was the fourth rep they had seen from our company in the past year. There was only one course ofaction: identify the issue, listen, listen, and listen, and allow them to vent. Just because you are listening and they are venting doesn't mean you are agreeing with them. At the end summarize what they said to make sure you have fully understood

the issues. Clearly, if there is a mistake, do not try to defend it. Fess up and deal with it, and always go one step further than is expected. If you had wished you or your company had done something better, let them know. Focus on the issues, not on the venom often floating your way. It is not normally personal despite how offensive the other party might be. Displaying patience, calm and real empathy will work better in making sure you solve the problem and put steps in place to make sure it doesn't happen again. Often the hurt party can even give you the solution, but to get it you have to listen.

Calls that started badly for me often might not result in a sale, but I knew that solving an important problem for my customer and being willing to take responsibility for it, was the right thing to do. Never did I feel better about a call than when I walked away knowing that I could return the next time, head held high, and I would be welcomed. It would lead often times to more business than the company had ever achieved before. Indeed, I used to be a real masochist and actually enjoy those calls, because many of these negative accounts went on to become our biggest customers. Sometimes the temptation is to back away from complaints, but at the end of the day meeting them head on and not allowing them to fester is the sign of good salesmanship.

Listening leads to trust, lowers resistance, and builds a rapport that endures long after the door closes on this particular chapter. But it's a skill that needs constant practice. Even when your wife screams at you to get outside and mow the lawn, golden silence should prevail, even though I have learned that you can't win them all. Coming, honey!

rnHE U.S. housing sector is in its

worst downturn in more than 50 years. With five months of data in, single-family housing starts are poised to averagejust 370,000 units at a seasonally adjusted annualized rate (SAAR) in the first half of 2009.

This is far and away the lowest level in the 59-year history of the series. The question now is, are we likely to stay at these levels and if so, for how long?

Most forecasters believe starts will remain at or below this level. In fact consensus forecasts imply single-family starts of 350,000 units through most of 2010! According to our North American Lumber Forecast (www. risiinfo.com/wtforecasts), this is much too low. Why is that? One need only look at new home inventories to understand why.

Actual inventory of new singlefamily homes for sale have been declining for several years now. In facr, inventories fell to 292,000 units in May. At the current sales pace, this is just over a lO-months supply, too high to encourage builders to ramp up construction. However, inventories will almost certainly continue to fall over the next six months, with the months supply likely to hit seven months by year-end, a level at which builders will begin to ramp up production.

We are quite certain inventories of

unsold new single-family homes will continue to fall over the next six months for several reasons.

First, new home sales stabilized in the first half of 2009 around 340,000 units per months (SAAR). Moreover, they increased in April and would have increased in May except it was an unusually short month (typically May has 22 workdays; there were 20 in 2009). With affordability improving (year-over-year new home prices are off llqo and mortgage interest rates are down more than 100 basis points), we conservatively expect new single-family home sales will average 360,000 units over the next six months.

Second, because it takes six to seven months to complete a home from the time it is started, we know how many single-family homes are going to be completed in the second half of this year-around 370000 at a seasonally adjusted annual rate. Now, with 360,000 homes being sold (again at a seasonally adjusted annual rate), you might think inventories should actually be increasing.

However, not all the home started are built for sale. In fact only about 65Vo of the starts in recent quarters were for sale. The rest were built by or for the owner and don't go into inventory. So, of the 370O00 homes that will be completed in the second half of this year, only about 240,000

(SAAR) will go into inventory and 360,000 will be sold.

With seven months left in the year, this means inventories will be drawndown by 70,000 units, leaving us with 222900 units of inventory. At a sales pace of 360,000, this is the equivalent of just over seven months supply.

Once the month supply of new homes gets down to this level, we believe builders will begin to increase single-family home production. While they certainly won't jack production back up to 1.0 million units, we would expect them to work towards stabilizing the inventory of unsold homes. At an annualized sales pace of 360,000, builders would need to produce 550,000 single-family homes (assuming 35Vo of the homes are built bylfor an owner) to stabilize inventories.

So, even if the RISI forecast for single-family housing starts proves overly optimistic (reaching 700,0000 units at year-end), the consensus that single-family housing starts will stay in the low 300,000 unit range (SAAR) through the end of this year is certainly too pessimistic.

- Paul Jannke is senior v.p. of wood & timber information for RISI, a leading information provider for the global forest products industry and publisher o/Crow's Market & Price Service, which offers free trial subscriptions at www.risiinfo.com/ crows. Reach Mr. Jannke at pjannke@ risiinfo.com.

Market PVC lrimboards for innovalive applicalions

By John Pace Versatex Trimboard

'I\TEW PVC trimboards are inspirI \ ing unusual applications for this low maintenance wood alternative.

Jim Montgomery, Lettieri Construction, Westhampton Beach, N.Y., got on the cellular PVC bandwagon years ago. He switched to cellular PVC for all exterior applications-windows, doors and corners, soffits, fascias, railing and balusterswhere the elements could ruin wood.

He also uses it for all sorts of new and unusual applications: window boxes, posts, at-grade louvers, trash receptacles, outdoor cabinets. He has

even created new window and door jambs, replacing the ones supplied by the manufacturers.

These exterior applications led Montgomery to another discovery: Why not try PVC trim inside the home, especially in places with exposure to moisture? Because of improvements in cell structure, PVC can look more like painted wood, even up close. Montgomery discovered more places to experiment with PVC trim-shoe moulding in bathrooms, in shower enclosures, laundry rooms, and other places where moisture ruins wood. He also used PVC for radius walls, enclosures, and inside window casings.

Sometimes it's a PVC product itself that needs some work. One of

the largest James Hardie siding installers in central Virginia, Blue Ridge Exteriors, was concerned about the extra labor, extra materials, and oversized trim they needed to use to meet code requirements for roof clearance. "We needed a 2" trim to do the job, and nobody made a 2" trim," said co-owner Matt Neely.

Instead, Neely's crew would start with a lx4 trim board, install that, and then go over it with a vinyl drip edge. It was double labor with the addition of the drip edge, which was easily broken by workers' boots, but this was still the best solution they had. When Neely had lunch with his Versatex regional sales manager, he explained the problem. About a week later, a prototype of a new design of

TRADITIONAL BATHROOM trimmed with cellular PVC withstands lots of moisture. vet still looks oreat.

AT-GRADE LOUVERS constructed of cellular PVC resist water damaoe outside.

skirt board showed up-with built-in drip edge and just the right height and angles to meet code. It could cut their labor cost and product waste for trim installation in half.

At that point, they brought in their dealer, Bradco Supply, Richmond, Va., to see if they were interested in setting up the delivery process. Blue Ridge normally gave Bradco a week's notice, and Bradco's distributor only needed a day or two to have the products delivered to their door.

"We didn't mind being the guinea pig on this one," said David Patrick, Bradco outside sales rep. "If it catches on nationwide, we know we helped get it started."

Cunningham Overhead Door, Louisville, Ky., had been considering making the change from wood to cellular PVC for garage doors and surrounding trims. It all started with an arched opening and the relative ease with which a 1x6 PVC trim could be installed without milling or heating the curved edge. Wood had traditionally been used, even though it took greater time and expense to get the wood milled and shaped to the exact spec.

"Even though the PVC looked great and it took less time and money, people just hung on to wood. It was what they knew," said owner Chris Cunningham. "When we discovered we could flex the PVC trim on site, without any special tools, it took a lot of the variables out of our installations."

Cunningham then experimented with attaching PVC planks to steel

garage door panels with a mix of specialized glue and fasteners. "At this point, there's a real art to building these doors," he said. "Facing steel with PVC planks really holds up, but not everybody can do it "

The process mimics old carriage doors, with rails and stiles made out of low-maintenance PVC instead of wood. Because of improvements in the smoothness of the edges of PVC trim, it's easier to give customers the classic look of wood doors, with almost none of the maintenance.

Durabrac Architectural Components, Pensacola, Fl., has been in business more than l0 years, and its product lines have evolved as PVC performances and tolerances have improved. The company takes 4'x8' sheets in widths up to 1" and laminates them together to make architectural brackets, balusters, spandrels, and gingerbread trim up to 5" thick. Changes in cell structure, along with the consistency of the product from front to back and the evolution to a more satin finish, have allowed them to take all their products to a higher level.

"We've never used wood for anything-it's been PVC all the way," said owner Mike Sheehan. He has experimented with new PVC sheet products though the years, and has been influential in convincing his local dealer it was time to switch to his favorite higher tolerance product. Manufacturers certainly have to respect levels of contact in the distribution chain. But by fostering an atmosphere of innovation and the

exchange of information, everyone wins. In the same way, dealers and their outside sales forces can become more of a conduit for new product ideas.

- John Pace is president, partner, and co-founder of Versatex Trimboards, Pittsburgh, Pa. He has more than 20 years of experience in the design, development, manufacture, and installation of residential and light commercial vinyl and metal building products. He can be reached at jp ac e @ v e rs atex.c om.

CELLULAR PVC trim looks more like painted w00d, even close-up.

Millwork dealers sparkle as wine-cellar sellers

By Mark Karpinski

IIJINE cellars were once thought V V ofas a product and service provided exclusively to the rich and famous. Today, nearly one of every five new homes has some form of wine racking or wine cellar, and countless existing homes are being renovated in order to devote a space to wine storage.

Wine racking manufacturing is a growing, $5OO-million industry, providing wine racking for residential, hospitality, and retail bar and beverage clientele. Building material and product supply centers are now beginning to stand up and take notice of the potential revenue boost that selling wine cellars and their associated building materials can add to their bottom line.

According to dealers and installers for wine racking manufacturer WineRacks.com, customers are recognizing the affordability of wine cellars, whether it is in a renovation in an existing closet space or a full wine cellar room. Wine cellar projects can run anywhere from small, $2O00 renovations to showroom quality, 29OObottle, wine cellar projects in excess of $25.000.

Not only are building material centers capitalizing on the sale of the wine racking itself, they are able to generate thousands of dollars in sales of the building materials and products involved in the project. Materials and

INTOXICATING NICHE: Wine racking and cellar projects are sweet matches for building material dealers.

products such as framing lumber, greenboard, insulation, vapor barrier, fasteners, wall coverings, custom cellar doors, and flooring are just some of the products that the retailer will profit on.

It is possible for LBM dealers to install an attractive showroom display at little to no cost that will allow their customers to more fully visualize what a finished wine cellar might look like in their own home. Much like

kitchen cabinet retailers, the software technology exists to help home center sales staffs create 3-D cellar designs with the customers, right in their showroom. Reputable wine cellar designers and manufacturers can provide the proper customer consultation and cellar design software training to your staff, as well as full room buildout and cellar installation instructions and tips.

In addition to the sale of the wine cellar racking and required building materials, the dealers are either handling the room build-out and cellar installation through their subcontractors, or they are cultivating new business relationships with the client's current contractor or builder. Those relationships lead to long-term sales and profits.

In today's market, you can't afford to ignore a fast growing segment of the building industry. With the growing popularity of wine appreciation and proper wine storage, your future customers could be waiting for you to be marketing, designing and installing the wine cellar of their dreams. Perhaps it's time to uncork this revenue potential by contacting an experienced wine cellar desisner and manufacturer today.

- Mark Karpinski is the director of sales for WineRacks.com and can be reached at mknrpinski@ wineracks.cont or (518) 773-4094.

For more than 60 years, the best architects, builders, contractors and retailers have depended on Reid & Wright t0 deliver the h:igh quality building materials they want, and the superior customer service they deserve. And now we're taking our customer service to new heights.

The new reidwright.com altows us to serve you even betler.

Check out our new website at www.reidwright.com, where you can:

. View our complete product line.

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Gheck out www.reidwright.com before August 30, and you could Win $1000 wortlr of free Fiberon Decking.

New programs aim ' ls that building product really green?

TTHREE major organizations |. have launched product verifications services this year. promising that building material buyers and sellers will now have third-party validation that manufacturers' environmental claims are true.

"For ECV, manufacturers can use service logo for marketing materials and packaging," Nelson said. "We will reserve use of a certification mark on products for SPCP."

Serious Materials' EcoRock drywall, which will debut later this summer, became the first product to pass the ECV program.

The next products slated to be tested by ULE include wind turbines, dishwashers and televisions, although Nelson is confident more construction materials will be analyzed due to "UL's rich heritage in building products. We're not limiting ourselves."

ing Seal program.

Underwriters Laboratories division UL Environment Inc., launched its environmental claims verification service in January. The same month, the National Association of Home Builders Association Research Center introduced its Green Approved program. And in the coming months, Good Housekeeping Research Institute rolls out its Green Good Housekeepins Seal nrosram. U.L.

"As sustainable produ.cts il*, ;ili

^ r ^ 4 ^ als content, volatile

resistance. become more available, thirdparty validation of claims by credible organizations will be crucial Chris Nelson, director of global comto eliminating exaggerated green mar- mercial development. "We provide keting claims," said ULE president credibility and a high level of transSteve Wenc. parency. You can believe that when a manufacturer says [its product] is

ULE's initial service, Environmental Claims Validation (ECV), "looks at what the manufacturer says about its product and provides thirdparty validation of those claims," said

In time, ULE will launch a second service, a Sustainable Products Certification Program (SPCP), confirming that products adhere to pre-setrather than manufacturer-set- standards.

NAHB's program confirms that approved products are eligible for earning points under the National Green Buildine

' to determine:

ENVIRONMENT tested EcoRock drywall's recycled materi-

organic compound emissions, mercury emis-

ffi6d

PARTT'IER tN SUSTAINABILITY you can believe it."

Standard. The launch occurred, according to NAHB's Anne Holtz, "at the same time as the ANSI approval of the National Green Building Standard- since Green Approved is a preapproval of points for products that meet criteria set within the standard."

The first products awarded the Green Approved label were structural frame products from ilevel by Weyerhaeuser, Owens Corning's insulation, duct and masonry veneer products, and and DuPont Tyvek weatherization barriers.

Easier Access To Green Directory

Building material manufacturers can now suggest products for listing in the GreenSpec online directory of green products, thanks to a new trial program by the Construction Specifications Institute and BuildingGreen.

For the test period, products and their sustainability properties submitted via GreenFormat are guaranteed to be reviewed.

The GreenSpec-GreenFormat pilot program will run for up to six months and, if successful, will continue as part of ongoing joint efforts by CSI and BuildingGreen to help the industry select and evaluate products.

To submit a product, visit https://webportal. csinet.org/greenformaVtrackbg.asp.

"We have a Green Approved mark and guidelines that we provide to manufacturers of the approved products for use in their marketing materials," Holtz said. "There is no stamp or sticker that

goes on the products."

Later this year, Good Housekeeping will announce the first products to receive its Green Good Housekeeping Seal. To be eligible for consideration for the new label, products first must pass the performance evaluation required to earn the original seal of approval. Then, the institute reviews data about the product's composition, manufacturing, packaging and other

attributes that may have an impact on the environment.

Goods approved to be stamped with either Good Housekeeping seal must carry the existing limited warranty. (If they prove to be defective within two years of purchase, Good Housekeeping will replace the item or refund the consumer.)

Products also must pass periodic reviews by the institute to continue to use the labels.

And to ensure that the green programs themselves are meaningful, Consumer Reports' Greener Choices recently launched an online Eco-Labels Center, providing an environmental report card for competing labeling systems. Their interactive tool rates labels by how meaningful they are, whether or not they are verified, if they are consistent, publicly available, free from conflict, and developed with broad public and industry input.

It seems like every product out there claims to be green. Dealers, builders, contractors and consumers now have tools to test those claims for themselves.

One Commerce Square 2005 Market Street, Suite 1200 Philadclphia, PA l9 I 0-t wood is all we do.

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

For over I (X) years, our experts have been providing quality claims and risk management services to the lumber, woodworking and building material industries. Remember, "you get what you pay tor." We understand wood. We know your business... because it's our business too.

lf you're looking for quality and value from your insurance provider, please contact the PLM Marketing Department at 800.752.1895 or log onto www.plmins.com.

Yesterday, Today, Tomorrow... grow knowing you're covered.

fohn K. Smith, CPCU President and Chief lxecutive Officer

etilive lig ence Forward, march!

By Carla Waldemar

tant choice of a lifetime: Go ahead with the project or bring out the mothballs? "Sure, the demand was greater three years ago," Mark acknowledges. "But the problem with a project like this is, it takes so much energy and work to get into it that you can't just stop it. We chose to move forward," he declares.

When good times roll back (as they will in a year, Mark foresees), Kelseyville Lumber will be poised to prosper. Already, Mark's thinking has proved correct. Town folks-retail customers and pros alike-are ecstatic about no longer having to drive 45 minutes to a Home Depot in Ukiah and are super-supportive. For Kelseyville Lumber, bounding from 4,000 sq. ft. to-gulp!-40,000 in retail alone within the new 81,000-sq. ft. building, which also includes covered yard storage and a whole lot more. is... well. let's let Mark tell it: "It's a big box, but a little more homey." Best of all, it meets its goal. It now offers one-stop shopping in a town with nothing of the kind before. The outfit's glass operation, started in 2003, and its door and window shop, opened in 2008, have been brought in-house. The wait time for special orders has become a thing of the past, as SKUs jumped from 24900 to ,14000 (including a big leap in fasteners).

Itr/HEN the going gets tough, the V Y tough keep going.

Kelseyville Lumber, located in that tiny Lake Country, Ca., community, was burning rubber-doing almost more business than it could handle, thanks to its top customers: the resort folks and local builders, the two main industries that kept the town hustling.

Mark Borghesani, general manager ofthe yard his grandfather launched in 1956 and where he himself has put in time ever since fourth grade, had foreseen his options-expand or wither. As far back as 2001, he recognized the need to trade the yard's hemmed-in, downtown location for a more spacious site.

So, as with every major outlay, he made his case with his dad. Robert. Kelseyville's president, just as he had for every significant, forward-looking purchase, from trucks and racking system to computers. "I can remember buying my first fax machine and punching in another phone line," the

young man recollects with a laugh. "Dad didn't talk to me for two weeks. Everything I did, I had to run past him-give reasons." Still do.

And the reasons he gave for expansion were dead-simple: "We were so limited that we knew if we were to stay in business, we'd need a new yard."

The frantic building boom of '03 to '06 propelled the project forward. "Money was flying around like nobody's business, so we had no trouble coming up with financing," Mark recalls. "So I bought more equipment and we started drawing up plans for a big, new, multi-million-dollar facility. I was ready to stock it when we were hit with D2"-as he labels the current recession. Depression Two is, to be blunt, exactly what it looks like in the eyes of Kelseyville, where buildingthe area's second-largest industry, remember-is bone-dry and unemployment has climbed to l1%o.

So, time to make the most impor-

But beyond lumber, doors and fasteners, Kelseyville has taken on new niche offerings designed to draw traffic, such as marine supplies for the area's avid lake lovers, as well as other sporting needs, from fishing rods to hunting permits.

Adding an indoor/outdoor garden center has already paid off (pardon the pun) in spades. "It's boosted transactions 25Vo," Mark reports with gusto, "and draws foot traffic through the new store."

So does the new rental center. leasing small to mid-size tools "and soon, ditchers and posthole diggers," he adds. Also ready to debut: a full-scale, three-meal restaurant (run by an outside operation), also expressly designed to draw traffic,'Just as they do in a Target or Wal-Mart," Mark explains. (Look for the new in-store coffee cart, too.) "We'll stay open Thursday, Friday and Saturday evenings to create a shopping environment for those diners," he continues. And to snag the ever-growing online shopping crowd, Mark's brother, Paul, the v.p. who oversees outside sales

HOUSING SLOWDOWN did not stop California pro dealer from building a huge new facility, which has helped bridge the gap to selling to homeowners.

and the company's web presence, is upgrading Kelseyville's website (www.kelseyvillelumber.com) to handle online orders, with the help of Orgill, which also assisted with store design and pricing.

To add to customers' ease (and the company's own profits), Kelseyville also installs windows, doors and mirrors, while subbing out items like cabinetry and flooring.

Catering to the new retail clientele is not-repeat, not-stone-simple when you've been pro-oriented in the past (the mix has segued from75/25 to 50/50). Despite a staff of 60-since the move, it's larger than it's even been-of what Mark depicts as "pretty diversified, experienced and loyal people," the hardest part about the move has been the new mind-set: "catering to everybody, from the pros, who need quick, efficient service (and still get free delivery) to the little old lady with a leaky faucet. But we try to manage rI.

"Pricing," he attests, "has become really important. We have four or five people working on that, department by department, from PVC to wire fencing. All it takes is one person talking around about it [noncompetitive pricesl, and people won't come back." Astutely, therefore, "we keep a close check on the competition."

The gorgeous new showroom has proven "effective immediately," Mark reports. In line with the times, "We've added a cheaper line of decking, of fencing, and of redwood retaining

walls."

Yet, nobody's perfect, right? Mark has learned, through the endeavor, that "you plan and plan and still don't get it all right, especially if it's your first store. We keep adjusting, keep on tweaking.

"What would I have done differently?" he ponders. "Not been in such a hurry. I would have worked longer on stocking-worked with vendors to get a deal before stocking, not wait until the pressure's on. We merchandized the store in 60 days and were closed only a week. I pushed it hard...."

Ambitiously, he's still pushing. Kelseyville has taken on two additional outside salespeople to expand the territory it covers. And, for the first time ever, the company has begun advertising. "We've never had to before; we'd been so busy we couldn't keep up. Now, we have four or five people working on marketing alone, and we're putting out an eight-page newspaper flier." However, "we plan to build a database and send it electronically soon."

D-i-yers love the store. But what's happening with the pros? "They're in here," Mark notes, adding that "a free icemaker helps draw them," just as he'd predicted. "But they're just not buying anything much-just working on little projects." Yet, when these builders eventually need house packages again, Kelseyville will deliverliterally. "We have two cranes, two forklifts, four trucks," and the list goes on.

To keep this fleet from driving the company into a money pit, Mark has put in a new, 10p00-ga11on diesel fuel tank, allowing him to buy a full load, which has cut his fuel costs by 25Vo.

Nonetheless, riding out 2009 is tough, no two ways about it. In another cost-cutting move, says Mark, "We're really streamlining our truss plant, which has been really affected by the slowdown. To keep the crew busy, we're using them to drive our vehicles."

What's the outlook in this basin of California? "I expect tough times through next winter before things pull around" foresees Mark. "The hardest part is keeping up morale. It takes a lot out of both employees and owners; everybody's challenged, everybody's making concessions. The most important thing is keeping an open book, laying it on the line: 'Here's where we are, and here's where we need to be.' Put it in their hands. To keep loyalty strong, as a manager, you've got to work even harder than your employees, so they see you putting in evenings and weekends. Then they'll believe it and stick with you. At Home Depot, it's all about the money. Here, it's utterly different."

And that's exactly why the odds are strong that Kelseyville Lumber will not only pull through, but lead the pack.

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

FISHf NG FOR CHARITY: To help a co-worker who was seriously injured in a boating accident, employees Cameron Cole (left) and Jake Koschik (nghf) donated fishing trips. Shown with Kelseyville Lumber general mgr. Mark Borghesani (center).

Green building and greenwashing

HE green building movement continues apace and more LBM dealers continue to ask how they can prepare.

One of the best things dealers can do is get their key staff trained in the most relevant programs for their area, whether it's LEED or a regional program. Developing this knowledge base in the organization can only be a positive and, if pursued intelligently, can be leveraged for competitive advantage.

But knowledge of guidelines is only half the battle since. as a merchant. the bottom line is still the bottom line-you have to stock and be effective at selling the green materials and products that green builders want, or should want with the proper education. And education is, of course, one of the most important aspects of selling. Which brings up the question: How do you know which products to stock?

The first part of the answer should be obvious-ask your customers. You have to get close to your customers, learn about the projects their working on, and for goodness sake, ask them what kinds of products you should stock for them. Having some background in green building guidelines will help you ask the questions intelligently, but even so, a green builder who encounters an interested, responsive retailer is practically a customer for life, so go do it!

By Jay Tompt

But relying on your customers to tell you what they want is, again, only half the battle. Developing expertise in your product categories and discerning the "real deal" from the "greenwash" requires some study of product certifications and getting to know the manufacturers.

Product certifications exist to protect against false claims and many are so good that green building rating systems like LEED incorporate them as standard. Among them, for example, are GreenSeal's GS-11, the standard for low-VOC paint and coatings, and FloorScore, for lowemitting flooring products.

But for uncertified products, merchandise managers must determine whether the product is truly green, is good enough to stand behind, and whether customers actually want it. After all, if a product fails to satisfy, for whatever reason, the dealer's reputation can suffer right along with the manufacturer's. And reputations are damaged most when the charge is "greenwashing."

In short, greenwashing is the false or exaggerated claims about a product-that it's "LEED certified" (LEED is a building rating system, not a product certification) when it's not, or that it has any number of "green" qualities that are vague, untrue and/or unverified.

In the realm of green building, merchandise managers can help themselves by asking manufacturers for third party LEED credit analysis or other documentation that demonstrates the veracity of the claims being made. A manufacturer that has gone the extra mile to produce an environmental product declaration, for example, demonstrates not only that the product qualifies for LEED credits, but that they take green building seriously. That's a good sign.

It's also a good idea to attend green building expos and talk to manufacturers directly. There are shows in almost every region of the country. GreenBuild, sponsored by the U.S. Green Building Council, is the largest national show. These shows are where you'll find the best information on new products and their performance characteristics. Find those gems and your green building reputation will be golden.

- Jay Tompt is managing partner of William Verde & Associates,a consultingfirmdedicated to helping LBM and home channel retailers, distibutors, and manufacturers become green leaders in their communities. He can be reached al info@williamverde.com or (4 I 5 ) 32 I -0848.

F-{igh Quality

ffimautif u I Color ilxcellent Durability

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Rnrrr:rs

ProBuild Holdings opened a new, 52p00-sq. ft. lumberyard in Grand Junction, Co., July 23, replacing a 4,000-sq. ft. unit (Tim Bork, general mgr.) ...

Austin Bluffs Ace Hardware is targeting an Oct. 30 grand opening for its 21,,940-sq. ft. store in Colorado Springs, Co. (Harold Meteer, general mgr.); owner Darek Barnes'family also operates three other Ace franchises in the area and one in Minnesota

Hollywood Hardware is liquidating its 41-year-old West Sacramento. Ca., location and moving remaining inventory to its other Sacramento branch

Home Depot remains committed to build a 102,513-sq. ft. store with 28,086-sq. ft. garden center on a former Timber Prodacts site in Grants Pass, Or., and has postponed remodeling of a 110,642-sq. ft. former Kmart in Thousand Oaks, Ca., after local officials recommended a 45-day moratorium on new LBM stores ...

Lowe's expects a Znd quarter 2010 opening for a 94,000 sq. ft. store with 26,500-sq. ft. garden center in Hobbs, N.M.; applied to build in Vallejo, Ca., and won planning commission approval to construct a 111,196-sq. ft. store with 27,720-sq. ft. garden center on 10.7 acres in Sonora, Ca., with hopes to break ground this fall

Wrorrslr:rs/tmurrtrun:ns

Angel Point Forest Products, Lakeside, Mt., has been formed by Ahren Spilker, wholesaling western dimension, studs and selects (www.angelpointfp.com)

Plum Creek Tirnber, Seattle, Wa., sold 60Pm acres of Wisconsin timberlandto RMK Timberland Group, Winston-Salem, N.C. ...

EcoBlu Products, Carlsbad, Ca., is leasing a3.6-acre former lumberyard in Prosper, Tx., to open an engineered wood component manufacturing/coating plant and regional office

Fontana Wholesale Lumber /nc., Fontana,Ca, has been Forest Stewardship Council chain-of-custody certified

BlueLinx's Denver, Co., distribution center is now stocking Bay Tree Tb chnolo gie s' PureWood thermally modified wood decking ...

Arch Wood Protection has been granted exclusive North American distribution rights for FlamedXX fire retardant-coated OSB ...

SierraPine, Roseville, Ca., has introduced Encore FR, a pafticleboard with no added urea formaldehyde and a non-borate flame retardant that is Class 1 (A) certified and can be shipped with the option of FSC certification ...

Lo ui s iana- P ac ffic, Nashville, Tn., released the latest version of its Wood-E Design software, which creates wall stud and column designs with LP SolidStart laminatod strand lumber ...

Wo o dfo ld Manufac turing, Forest Grove, Ca., was recognized for its pollution prevention efforts and environmental leadership by the Small Business Ombudsman/Small Business Environmental Assistance Programs ...

Anthony Forest Products earned an NAHB Research Center Green Approved product seal and was honored by the Texas Dept. of Insurance's workers' compensation division for exemplary safety programs at its plants

Daw Building Solutions earned the NAHB Research Center Green Approved mark for its insulation and air sealing products

Combilift's facility in Ireland manufactured its milestone 10,000th forklift, destined for Weyerhaeuser's Parallam mill in Annacis Island, B.C.

Silvaris Corp., Bellevue, Wa., has expanded its OSBMarket website to offer online sales of offgrade OSB across the entire continental U.S. and most of southern Canada...

Sunbelt launched a new website at www.sunbeltracks.com ...

Ainsworth, Vancouver, 8.C., has redesigned its website (www.ainsworthengineered.com) to provide information and technical support for its value-added engineered wood products ...

Housing starts in June (Iatest available figures) creptlup 3.6Vo to a seasonally adjusted annual rate of 582.000- still 46Vo below lune 2@8's rate single-family starts rcse I4.4Vo to a 470000 pace permits increased 8.7Vo to a yearly rate of 563.000.

Oregon Logging In Freefall

Oregon timber harvests are expected to fall to a record-low 3 billion bd. ft. this year, according to projections by the Oregon Department of Forestry.

In 2008, statewide harvests dropped 9Vo from 2007 to 3.44 billion bd. ft., matching the previious low of 2001.

At its mid-1980s peak, the state's timber harvest reached nearly 9 billion ft.

"When the housing industry gets a cold, we get pneumonia," said Ray Wilkinson, executive director of the Oregon Forest Industries Council. "And there doesn't seem to be light at the end of the tunnel. Any glimmer of hope seems to be a ways out."

Euild Green

r ^ rif h \ ^ //1o+^rn rar] r.arl rr r VVIII I VVU)IUI I I IUU UUTI\II

Western Red Cedor (WRC) offers unique, nalurol performonce chorocteristics, exceptionol beouly ond the lowest impoct on the envrronment.

Life Cycle Assessment cnolysis reveols WRC decking is esseniiolly corbon neutrol ond its life cycle impoct over o 25 yecr life cycle is less thon 2O7o of the effecl of wood plostic composite decking, When it comes to siding, ogoin Western Red Cedor stonds out os hoving ihe lowesi impoct on the environment. The globol worming potenticl meosure indicctes thot WRC siding produces the leost greenhouse goses of the four siding systems siudied, WRC siding is three times less intensive thon fiber cement siding.

As green building systems increosingly incorporote life cycle ossessment into their roting schemes, WRC will hove o distinct odvonlcge. Wesiern Red Cedcr from WRCLA members is the righl choice for your business, your customers ond your world.

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Li.stirt.g.s ttrt ollttt .sLtltntitltl ntotttlts irt tttlvttrtt t'. .\/rr'rrr.r lr'r'rfi tltttL's tttttl ltttttirtrt.: trillt .sltott.srtr ltt'lltrt' rtttrkittg l)lan.\ to (ttt(tI(1.

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\\'cstern tluilding Nlaterial Associalion - A,tg.25. lilc slictr u cbinar: u u,u .rr bnrlr.or'!.

\ational Associalion ol' \\'omerr in ('onstruction - Aug. 2(r-29, lurrrruul tonventiorr. .lW Deselt liiclgc Rcsort. I)hocnir. ..\2.: ( 800 ) -i.i I .1.)06.

Rcrnudcling & l)ecorirlirrg Shorv - '\ug. 28--10, SoLrth I tru rr lrrpo Ccnter'. Santlr IJt.: (3lfi) .i57-]()-i0.

Rcrnorleling c! l)e corating Shou - Aug. 29-J0, I'asailcnrL Conlercnce ('cntcr. Pasilclcrlr. C'lr.: (li I lt) 557 l()50.

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Indepcndcnt Lumber Rcmanufacturcrs .\ssociation - Se pt. -1. anrrurl nrccting. C'oc1ttillanr. B.('.: (604) lJl-+ -71i0.5.

ll(l \\'ood - Scpt. l0-12, globll bLrlet-'s nri:sion. \\'lristlcr C'orrfcrcncr ('cntcr. \\'histlcr'. U.('.: (fi77) -+12 9661.

Horizon l)istribution Inc. - Sept. l2-13, aunull nrilket. \'akirna ('or.rventior C'cnlcr. \'akirrra. \\'u.: ( fi(X) ) 5l | -8 I 61.

lloo-Iloo Internationitl - Sept. l2-15, annual con\cnti('n. Hln'ah's Ilotcl & C-usino. Ii.eno. Nr.: (fi(X))979 99-50.

ItlSl North lnrerican l.'orest Products (bnf'crencc - Sept. l-l16. Wcstin (iaslanrl-r Quartcr. San I)icgo. Ce.: {l ll) 5-17-tl l-lo.

North '\nrerican \l holesalc l.unrber Association - Sept. l4-t7. ri oorl basicr c()Lrrsc. Salbasgcon Suitcs & ('onlctcrtce Ccntcr. ('orvrLllis. Or.: tfi-17 i fJTO 7170.

\\'illanrette Vallcl' lloo-lIoo Club - Sept. l(r, tral) sh()o1. Sportsmurr's ('lub. ('rcsricll. Or.: t5-1 I ) -lE5 597i1

Door & Harduare Instilrrle - Sept. l6-26. irrtnurl cottlc'tcttcc & cxyro.Cur'lorcl l)alnrs Rcsort.Orlrrrrclo. Iil.: (70illll l0 lO.

,fcrrsen l)islribution Scrrices - Sept. l7-19. llll ntrrkct. Spokanc C'orrr e ntion ('cntcr'. Spokatrc. Wu.: (509) 6l+- l.ll I

Wcstcrn \\'ood Products .\ssociation - Sept. lll. LurrtbcrI)ionccr: unrrLnrl nrectinc. N4onlrrch Hotcl. ('liickirrttas. C)r.: (50.1)2ll-39.10.

Rernotleling & l)ecoratirrg Sho* - Sept. ltt-20, Duris ('or-rntr Conl'crcncc C'cntcr'. Lavtorr. Ljt.: til I fit -5-57 19.50. ,\rnerican,\rchitectural \lanul'acturcrs r\ssociation - Sept. 20-23, nltional I'lll conf'ercrrce. [.ocus L.irkc l.ris Vcgas Ilcsort. Hcrrdcrson. Nr .: tll-17 t 30.1 5661.

I'ortland Hoo-Hoo ('luh - Scpt. 23. rncrrbclship tlrir c. Hrrvdcrr's Llkclirnt (inll.'fualrilin. ()r.: l-50it617 50 I |. l):rcilic \orthrrest ,\ssociation ol'Rail Shippcrs - Sept. 23-2.1. f lll scnrinirr'. Vallcy Ilivcr Inn.l:u-:Icrrc. ()r.: t-iOjt656-lllll. lioresl I'roducts Socictl - Scpt. 28-J0. intcrnltiotritl conlclcttce on soocl uilhesives. Halvey: ILcsort Hotcl & ( lisino. SoLtlh Llkc I rthoc. Nr .: ((rOS) l.l l-l.l()1.

\alional Hardrrood l,unrber Association - Sept. 30-Oct. l. rurrrruul corrlcnti()n. Sl)crirlon. lloston. N'la.: t90l ) 177 II Ilt. lluilding Conrporrcnt Nlanufacturers ('onf'erencc - Scpt. -1(f- ()ct. 2. l)lurenix Converrtion ('entcr'. l)hoenr\. ]\/.: (608) I l0 61))

Glasslluild .\mcrica - Scpt. 30-Oct. 2, ,\tlanta. (il.: t70l) -1Jl -+89( ).

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Nlountain Statcs Lunrber & lluilding \Iatcrial I)calers ..\ssociation - Oct. 1--1. 1'ull conlcrcrtcc. llrc ltnclncss Hotcl & C'onlctcncc C-cnter. Iirtg.lctooti. C'o.: (fl(X)).16-5-09 I9

'l'rue Yalue Co. - ()ct. 2--i. lrll rtlrrkcl Salt Pllace ('ortrctttiott Ccntcr. Srlt l.irke ('it)'. LJt.: (77.1) 695 5(XX).

Re nrodeling rt I)e coraling Shuu - ()ct. 3-;1. Los Arrgclcs C'orrrcntion ('cntcr-. [-os Angclcs. Ca.: (fi I 8) .i57-]t)-i0.

Leaner Stock Emerges From Chapter 11

Stock Building Supply, Raleigh, N.C., emerged from Chapter 1l bankruptcy July 1 with l0l fewer stores.

"We are re-focused on our core markets and are well-positioned for the upturn in the housing market," said president Joe Appelmann. "We are pleased to have completed our recapitalization on an accelerated timeline, while meeting the commitments we made to our customers, vendors and employees-none of whom were impaired as part of the bankruptcy process."

Filing for Chapter 1 I was a requirement of Stock's sale to the Gore Group, a Los Angeles-based private equity firm. The firm acquired

Huff Adds Industrials Yard

Huff Lumber Co., Santa Fe Springs. Ca.. is taking over operation of the industrial division of Reliable Wholesale Lumber, as of September l

Huff will lease the Temple City, Ca., property from Reliable and the Higman family. Huff also plans to open a reload on site, to take advantage of its Union Pacific rail spur.

All industrial sales staff is expected to remain, including George Kallas, who will manage the facility.

Reliable will relocate its Temple City wholesale operations to its new yard in Riverside, Ca. Reliable also has locations in Huntinston Beach and Stockton, Ca.

ldaho Mill Back in Operation

Whiteman Lumber, Catalco, Id., is back in operation six months after a fire destroyed the 81-year-old mill.

"Well, this is the big day," said owner Brad Corkill. "This is pretty exciting. Six and a half months I've waited."

After the Jan. 5 fire, Corkill rallied his employees, salvaged what he could, and brought in a portable sawmill to continue production. He then expanded the mill, creating more space for materials, and brought in new machinery.

A new 16,000-sq. ft. roof should be complete this month. A new storage shed is complete and there are plans to eventually add a second drying kiln. After the renovations, Corkill joked, the facility can claim to be both the oldest and newest sawmill in Idaho.

5l%o of Stock from its parent, UKbased Wolseley, which retains a 49Vo percent interest in the company.

During the reorganization process, Stock exited 32 markets. The company also eliminated 8l jobs at its headquarters just days before emerging from bankruptcy.

The company's 19 markets now include the Triangle, Triad and Charlotte areas of North Carolina; Greenville and Columbia. S.C.: Austin, Amarillo, Houston, Lubbock and San Antonio, Tx.; Salt Lake City and southern Utah; Spokane, Wa., and

northern Idaho; Washington, D.C; Paradise, Pa.; Richmond, Va.; Atlanta, Ga.; Albuquerque, N.M.; and Los Angeles, Ca.

The Gores Group invested $75 million in Stock and made a $150 million credit line available that has not been used yet.

"We believe the decisions made over the past several weeks have put the company on a path for success," said Timothy Meyer, chairman and managing director of The Gores Group. "The proactive steps Stock has taken will eliminate uncertainty about our future, an uncertainty that many of our competitors continue to face."

NATURE'S DESIGN ?ECHXOLOGY'S ASSURANCE

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Bosed in-Annopolis. MD, Fletcher Wood Solutionso isrthi: lorgest monufocturer of defect-free, oppeoronce grode rodioto pine products in New Zeolond. Distributing our cleor boords, mouldings, LIFESPANo treoted wood, ond lumber to the North Americon morket through our proven ond completely integroted supply choin, Fletcher Wood Solutionso mointoins direct occess to one of the lorgest FSC certifiedo pine plontotion forests in the world.

'FIETCHER. m0utDlNcs'

'J1EICHER. w00D soluiloNs'

Mountain States Lumber & Building Dealers Association will offer several educational programs during its fall conference Oct. l-3 at Inverness Hotel & Conference Center, Englewood, Co.

Tim Connor, president and c.e.o. of Connor Resource Group and Peak Performance Institute, will discuss "Meeting the Challenges of Uncertain Times" and "Employee Tension Management." One lunch session will present a panel discussion the challenges of change management, while another will present recent findings of the Forest Health Task Force Panel.

Western Building Material Association will offer a variety of 20minute training webinars that fulfill OSHA workplace requirements.

Fire safety is the focus of the Aug. 25 webinair. The importance of main-

taining a neat and clean workplace will be presented Sept. 17, while safe material handling will be discussed Oct.22.

Lumber Association of California & Nevada's 2nd Growth group will hold its monthly dinner meeting and program Oct. I at Embassy Suites, Brea, Ca.

LACN's annual convention is Oct. 22-23 at the U.S. Grant Hotel in San Diego, Ca. Social activities will include a golf toumament at Coronado Municipal GolI Course. an opening reception, and a president's dinner and awards program.

Los Angeles Hardwood Lumbermans Club has elected Stephen Ondich, Commercial Forest Products, Claremont, Ca., as president, succeeding Bill Fitzgerald, Industrial Timber

& Land.

Other officers include v.p./treasurer Garrison Cox, GLC Millworks; sgt.at-arms Deonn DeFord, Ganahl Lumber Co.; membership chairman Walter Ralston, W.M. Cramer Lumber Co.; social chairman Dan Bohannon, Bohannon Lumber; golf chairman Bob Mitchell, Mitchell Forest Products, and directors-at-large Charley Fiala, GMC Hardwoods, and Fitzgerald. Sept. 17 is the date for the club's Alan Bohnhoff Memorial Golf

(Please turn to page 43)

L.A. HARDWOOD Lumbermans Club outgoing president Bill Fitzgerald (/eft) welcomes his successor, Steve Ondich, during the club's recent election meeting in Anaheim, Ca.

Huttig Closing Alaska DC

Huttig Building Products will shutter its Anchorage, Ak., branch in fourth quarter 2009 and will serve the state from its distribution center in Aubum,Wa.

Over the last three years, St. Louis, Mo.-based Huttig has closed 2O locations, cutting its branch count by twofifths and its workforce in half.

Producer Buys Millwork Firm

Hardwood Industries, Sherwood, Or., has acquired hardwood millwork producer Braided Accents, Rathdrum, Id., and its Mountain Moulding & Millwork division.

Braided Accents' specialized equipment and inventory will be moved to Hardwood Industries' new 43,000-sq ft. facility north of Seattle, Wa.. by mid-September.

Clint Bower, who l2 years ago launched Braided Accents with his wife, Cheryl, to specialize in rope mouldings, will maintain an office in Rathdrum, continuing in sales with Gina Mather.

Bower said he selected Hardwood Industries "to carry on the Braided Accents tradition... due to their reputation, capabilities and professional-

ism. We feel confident our customers will continue to benefit from the same excellent products and services with which they have become accustomed."

Northwest Yards Double Up

Two companies that deal with cedar products are now sharing yard, warehouse and showroom space at a 2.5 acre site in Spokane Valley, Ca.

Coeur Lumber Group, which opened March 2008 in Hayden, Id., wanted warehouse space closer to Spokane. The company will continue to operate in Hayden, where it produces siding, timber framing, and moulding. Spokane Cedar Products moved from a location in Otis Orchards that it had occupied since July 2003.

"We feel like the Spokane market is stronger and is going to rebound sooner from the recession than the Hayden area," said Shane Heick, who co-owns Coeur with Damon Shaw and Scott Carter. "We're trying to go where the most activity is going to be."

According to Heick, the new location is too large for either company to operate independently and sharing expenses will help both in the current economic recession.

Sales is competition

By James Olsen

II/E MUST compete to sell. I am Y V always surprised working with salespeople who don't want to compete. They are what I call "quotron units" or "product presenters."

The phrase "It sells itself' should be stricken from the vocabulary and, more importantly, from the mentality of every professional seller. We should replace this illusory phrase with the more appropriate "If it's to be, it's up to me," or my favorite, "If we don't sell, we don't eat"

Less Is More

Give me a salesperson with a little less personality, smoothness or charisma, but with a bit more determination every time.

I recently spoke with a brilliant salesman. He is one of the most likeable, charismatic people I have ever worked with. He is one of the best sellers, at the moment of close, thatl have ever met. I have sold side-bYside with this guy. He is great in front of the customer.

His problem is that he doesn't want to prospect. "If I could just hire someone to set up the appointments for me...." This salesperson, in spite of his enormous talent, is producing well below his potential because he lacks the discipline to prospect on a consistent basis.

To be successful in sales we must be half gunslinger and half farmer. What do I mean? Our gunslinger is our closer. Our gunslinger is our person who can communicate with manY different kinds of personalities. Our gunslinger is the one who can respond on the fly.

Our farmer is the one who shows up every day and completes the stePs of the sales process with discipline. It is rare to find both traits in one person. That's why most of us have to work at being great salespeople.

Pareto & Workaholics

Pareto's Principle states that 807o of everything in any competitive activity goes to 20Va of the people involved

in that activity. Eighty percent of the fish are being caughtby 2OVo of the fishermen: 8OVo of the baskets in the NBA are scored by 20Vo of the players;2\Vo of the flower shops are selling 80Vo of the flowers. Given that sales is a competitive field, SOVo of the business is going to 20Vo of the salespeople. Who are those207o?

"Natural" superstars make up a small portion of this group. The "naturals" do exist. There is a segment of people who are naturally great sellers. They are about one in 60. We then have the "man-made naturals." These are the professionals who have studied the game of sales and worked on their skills until they are as good as or better than the naturals. The "man-made naturals" get another portion of the business.

Then we have the workaholics. Their technique isn't necessarily better than the rest, although they do build their skills faster than the salesperson who works less because they get a lot more practice. The real strengths of the workaholic are time and determination. If the average salesperson works 40 hours a week (it's less), the average workaholic is working 60 hours a week. Assuming closing percentages are the same, the workaholic will get 5O7o more of the business! This assumes a portioned awarding of orders. In many "all or nothing" sales environments, the percentages will be even more slanted to the workaholic.

Balance, Development, Intensity

Are we destined to mediocrity if we are not a "natural" or a workaholic? Yes, if we don't change. I believe in balance. Life is more than getting the order. But I am not in denial about who I am competing against. The very talented, very dedicated, and the overly dedicated are getting 807o of the business.

Do we have to work 60 hours a week to compete with the workaholics? No. But we will have to be disciplined and intense in our work day. We will have to work on our sales skills. We also have to be engaged while we are working. Showing up for 35 to 40 hours a week will put us in the bottom 8OVo. We must comqete. We must work on our sales techniques and disciplines to be the top 2}%o-where sales is fun and profitable.

- James Olsen, Reality Sales Training, specializes in sales training for the lumber industry. Reach him at james@ r

REELBHH#""B

1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca.92806

Fax714-630-3190

(714) 632-1988. (800) 675-REEL

3518 Chicago Ave., Rivenide, Ca.92507

(9s1) 781-0s64

www.reellumber.corn

At n""t Lumber Service, we supply domestfc and foreign hardwoods. Our products and services include:

. Hardwood Lumber & Pine

e Hardwood Plywood & Veneers

. Melarnine Plywood

Ffardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech)

. Milling (moulding profiles, S2S, SLRIE, SLR2E, & resawn lumber)

. Voodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc,)

Voodworking Supplies (deft finishes, color putty, adhesives, etc.)

Oo" products are widely used in

interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of cornplernentary products to cornplete virtually any woodworking or millwork project.

Earl Ingle and Frank Peters. exBuckeye Pacil'ic, are handling sales for the new Portland. Or., office of Ernpire Wholesaie Lunrber. Akron. oh.

Kristen Mautz has joincd the sales team at Hcaldsburc Lumber's

Hudson Strcct Design showroom in Healdsburg. Ca.

Shae ()arrett has been promoted from hranch mgr. to manlgrng partner at ABC Supply Co.'s Aburquerque. N.M., facility. Other new partners include Greg

GEO. M. HUFF LUMBER COMPANY;

o premier distribulor of wholesole building producls; hos teomed wifh Roseburg Engineered Wood Products in the Southern Colifornio morkel. Huff Lumber offers the complete line oi Roseburg EWP coupled with full technicol copobililies including toke-off, conversion, plocement drowings ond engineering services. EWP moteriols ore ovoilqble in mill direcl bulk shipments, locol units ond cul piece iob pockoges.

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Lanphear, El Cajon, Ca.; Bruce Neisse, Goleta, Ca., and Adriel Sheridan, Portland. Or.

Steve Ward, John Percin, and Rob Turk have formed Talon Forest Group, Portland, Or. Mike Atkerson has joined the company, fbcusing on concrete forming lumber and lumber sales. All were previously with American International Forest Products.

Robert Ross has joined BW Creative Wood Industries Ltd., Maple Ridge, B.C.. as sales & merchandising mgr.

Christopher Shope has been named national sales mgr. for Ip6 Clip Fastener Co.

William Currie. Universal Forest Products. has retired as executive chairman after 38 years with UFPI, but remains chairman of the board.

Victor Dean has been promoted to general mgr. of roofing systems at Dow Building Products.

Duncan Kerr, senior v.p. and chief operating officer, has left Western Forest Products, Duncan, B.C.

Christian Pap6 has been named mgr. of corporate development & external affairs for The Pap6 Group, Eugene, Or.

Mike Coffey was promoted to c.e.o. of RISI, Bedford, Ma., following United Business Media's acquisition of the outstanding 487o share in the publisher. He succeeds John Day, who is now c.e.o. of UBM.

Kirsten Swallow is a new marketing & communications assistant at LMI Technologies, Vancouver, B.C.

David Poggemoeller, North Enderby Timber, Enderby, B.C., was elected 2009-2010 president of the Pacific Lumber Inspection Bureau. The new v.p. is Eric Fritch, Fritch Forest Products, Snohomish, Wa., and secretary/treasurer is Jeff Fantozzi, Federal Way, Wa. Now on the board are Jim Hallstrom, Zip-O Lumber, Eugene, Or.l Blair Buchanan, Weyerhaeuser, Federal Way, Wa.; Jim Manke, Manke Lumber, Tacoma, Wa.; Bob Waltz Jr., Seattle-Snohomish Mill, Snohomish, Wa.; Greg Mobley,

RSG Forest Products. Kalama.

Wa.; John Thorlakson, Tolko Industries. Vernon. B.C.: Paul Beltgens, Paulcan Enterprises, Duncan, B.C., and Ted Smith, Gilbert Smith Forest Products, Barriere, B.C.

Kenneth D. Mentzer has retired as president, c.e.o., and treasurer of the North American Insulation Manufacturers Association, after 30 years with the organization.

Tom Santer was promoted to v.p.distribution strategy for American Standard Brands. Chris Capone, ex-Jacuzzi, is now v.p-wholesale sales; Scott Meyer, general mgr.faucet division; Jeannette Long, general mgr.-e-commerce; Mark Hamilton, ex-Whirlpool, general mgr.-luxury & showrooms; Gerry Messina, ex-Benjamin Moore, director of customer developmentretail faucets, and Carter J. Thomas, director, industrial design-luxury business.

Molly Kwiatkowski, director of residential shingle products and programs. Owens Corning. was appointed to the board of trustees of the Roofing Industry Alliance for Progress Committee.

Roy O. Martin, RoyOMartin Lumber Co., Alexandria, La., has been appointed by Gov. Bobby Jindal to the state's commission on streamlining government.

Lila Pritchett, Hadlock Building Supply, Port Hadlock, Wa., was honored as Employee of the Quarter.

Ginger Vitus now manages the dental health program at MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Colorado Stock Yard Revived

The family that owns La Jara Trading Post, La Jara, Co., has purchased the former Stock Building Supply in Alamosa, Co., with plans to reopen it as Alamosa Building Supply late this month or early next.

La Jara took possession of the property after Stock's lease expired July 31.

Co-owner Hoyt Anderson said Alamosa Building Supply will operate with the same family principles as La Jara. He was able to retain about three-quarters of the former Stock workforce, and several already began working at La Jara at the start of summer, just after Stock closed.

Construction Slowdown Breaks Window Growth

A collapse in new construction is driving down window demand to nearly half of its record 2005 level, according to a new study by the American Architectural Manufacturers Association and Window & Door Manufacturers Association.

Shipments of wood windows, already down by 40Vo since their 2003 high, are expected to fall another 257o this year, before picking back up next year.

Vinyl windows should fall22.5Vo this year (a 43Vo drop since 2005), while aluminum will plummet 367o (667o below '05).

Fiberglass, the only major material to increase last year-as well as in the each of the five prior years-will slip l2Vo this year, then rebound to jump approximately 337o in each of the next three years. Its market share is expected to grow from its current 2.8Vo to 4 .4Vo by 2013

The 2008/2009 U.S. Industry Statistical Review & Forecast for Windows, Doors and Skylights is available from www.wdma.com.

Shipments of Prime Windows (2003 - 2012rorecast)

ProBuild Expands In Montana

ProBuild Holdings has acquired its eleventh facility in Montana-a former Stock Building Supply yard in Kalispell that closed earlier this summer.

Brent Hall, who opened the facility in 1916 as Tri City Lumber and stayed on as manager when he sold it to Stock in 1999, will remain as general manager. The yard, ProBuild's first in the far northwest region of the state, has l5 employees.

In recent weeks, Denver, Co.-based ProBuild also picked up three former Stock facilities in the Chicaso area.

lnterfor Restarts Oregon Mill

Interfor Pacific's mill in Gilchrist, Or., is back to one shift a day after sitting idle for four months.

"We've decided market conditions have improved enough to restart in the same configuration as when we shut down," said Rich Frazer, general manager of Interfor's Oregon operations.

The mill shut down in late February due to a lack of demand for finished wood products and the downturn in the housing market. Only a skeleton crew was kept on, for security, maintenance, and several small projects. Now, mill officials are now trying to re-hire 70 former employees.

Because construction is still down, the mill will focus on wood products used for furniture, paneling, hand tools, decks, and other goods-which can be made from small pine trees commonly cut down to reduce wildfire risk in the nearby Deschutes National Forest.

"The logs that come out of these hazardous fuels treatments match our product line pretty well," said Frazer, who added that mill officials are concerned about the stability of the lumber supply. He said the business is dependent on the U.S. Forest Service putting timber sales and hazardous fuels projects up for bid.

"The mill economics are still not great," said Frazer. "It's still not out of the woods from an economic standpoint."

New Home In Works For Ace

Orland Ace Hardware, Orland, Ca., has broken ground on a new 21,000sq. ft. store to replace its 75-year-old building destroyed by fire Oct. 13.

Construction should be completed by late October or early November.

The new, $1.5-million building, more than a third larger than its previ-

ous home, will feature bigger paint, plumbing, electrical and garden departments, as well as niche areas. In time, owner Ben Pforsich will add a small lumber department.

The store has been operating in temporary quarters since the fire.

Virgil's Picked Up By Chain

Lumber City Corp., Chatsworth, Ca., owner of the nine-unit California Do It Center chain, has acquired 103year-old Virgil's Hardware Home Center, Glendale, Ca.

Tony Maniscalchi, who bought Virgil's from second-generation

owner Bob Brinkman in 1996, said finding a buyer who would preserve Virgil's atmosphere was critical. The hardware store is known for its quirky selection of merchandise, everything from one-of-a-kind hardware fixtures to eggs and sauerkraut.

"Virgil's is an institution, and I know that," said new owner Jess Ruf. "And we aren't going to change a thing."

In an effort to allay customers' fears, the Virgil's marquee read: "We're staying Virgil's. Same great people. Same great service. Pickles and eggs forever!"

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Deal Collapses For Stimson Mill

Stimson Lumber, Portland, Or., is looking for another buyer for its mill in Bonner, Mt., after a tentative buy-sell deal with Montana Improvement Co. fell through.

Stimson closed the plant in May 2008. Last October, Montana Improvement bought the mill's equipment at auction.

The company also owns the 42 houses that once were home to mill employees, plus a post office building and some nearby land.

Owner Scott Cooney said he still wants to lease at least part of the 170-acre Bonner site to build a biomass plant that would use the old mill equipment.

Montana Sawmill Ships Last Logs

Plum Creek Timber's Pablo sawmill in Montana shipped its final logs July 22. The mill closed lune 26, putting 87 people out of work.

"We bought the remaining lumber, about 400000 bd. ft.," said Rick Kitch, Silver City Lumber, Three Forks, Mt. "It's the last load out of the Pablo Plum Creek mill."

Kitch hopes the mill will open again one day. "It's strange to see the last log go," he said. "I'm looking at an empty yard now. We see this a lot. It's not good."

CertainTeed Returns To Decking

CertainTeed Corp. is back in the decking business, after agreeing to distribute Fiber Composites' cellular PVC line under its own brand name.

Branded as EverNew LT. the ultra-low-maintenance decking will be manufactured by Fiber Composites in four colors and backed by a lO-year stain and fade warranty and CertainTeed's lifetime limited performance warranty.

"CertainTeed is clearly a leader in the building products industry and as such, brings new market opportunities for Fiber Composites PVC decking technologies," said Fiber Composites president Doug Mancosh. "Their strength at reaching the one-step distribution channel will complement our current efforts to build decking and railing business through our two-step distribution base, which promotes Fiberon-branded composite and PVC decking and railing products."

CertainTeed discontinued its own composite decking line. Boardwalk. in 2006.

San Diego Yard Blaze Thwarted

A July 2l fire at J&W Lumber, Escondido, Ca., was quickly doused by local firefighters.

According to battalion chief Herb Griffin, the business's separate lumber racks helped prevent the fire from spreading. He said that the early-morningblaze was confined to a single, outdoor rack of cut lumber and was extinguished in 10 minutes.

Fire marshal Dominick Arena said spontaneous combustion of oil-soaked sawdust caused the fire. "We actually have surveillance video footage that shows the fire starting," he said.

The day before the fire, an employee reportedly used sawdust to mop up spilled linseed oil and then put the oilsoaked sawdust in a bag with some rags in a trash can. The linseed oil began to oxidize and give off heat, eventually reaching its ignition temperature early the next day.

Most Still Not Sold On

A majority of wood products companies do not use a forest certification program, according to surveys conducted by the Southern Forest Products Association and Random Lengths. SFPA surveyed southern pine producers who are members of the Southern Pine Council, while Random Lengths surveyed producers, wholesalers, distributors and retailers.

Interesting findings from the SFPA survey include:

. Approximately 6l%o do not use a certification system.

. Approximately 46Vo of southern pine producers do not plan to seek certification any time soon.

. Approximately 6OVo of southern pine producers receive regular requests for certified products.

. About 89Vo feel it is important to market southern pine lumber as a "green" product.

Approximately 56Vo of Random Lengths respondents indicated that

Certification

they do not use a certification program-mainly because of high costs. According to respondents, the average cost of obtaining and maintaining certification is $19,898 annually-but can reach six figures.

"While many companies are not embracing certification programs, they are hearing a lot about it and are working to accommodate their customers," said Russell Richardson, SFPA's director of industrial markets. "They like the fact that they are being environmentally conscious, but they also have to balance their investment in certification in order to maintain a viable business model."

"Watch green building closely," Richardson advised. "Just as new building construction affects demand of traditional wood products, green building construction will affect demand of certified wood products."

CENSULTINt3 ENGINEERS

LINEEi TRUSS DESIENS STRUCTURAL DESIGN ENGINEERED WOOD PREDUtrTS

Providing design and repair engineering for all Engineered Wood Products and solid sawn materials; joists, beams, bolted trusses, Metal Plate Connected wood trusses, and more!

producls

Recyled Fiber lnsulation

UltraTouch insulation from Bonded Logic is made from recycled blue ieans and cotton fiber.

Flat, eggshell and semi-gloss finishes, plus a universal acrylic primer, can be mixed to virtually any color.

- Visit www.graysealpaint.com

Textured Vinyl Siding

Variform Heritage Cedar vinyl shingle siding by PlyGem features cedar texture in 15 different colors. The Upright Locking System

The oroduct is available in four differeni R-values and does not contain harmful airborne particulates, formaldehyde, and reportedly does not irritate the skin.

- Visit www.bondedlopic.com

PaintWithout Odor

Odorless. zero-VOC interior latex paint from Gray Seal is stain and mold resistant.

Extraordin-aire has ceramic pigments for durability and an antimicrobial to resist mold and mildew.

reportedly allows for easy installation and enables the product to withstand a wind load up to 195 mph.

- Please visit www plygem.com

PVG Railing Meets ADA

TimberTech' s ADA-compliant hand-rail system has a l-112" diameter gripping area for easier access and additional safety.

The exterior is PVC tubing supoorted with an extruded aluminum insert to increase rigidity and lasting strength. Adjustable internal joiners accommodate transitions from 0o to 90'.

Other components include a wall mount bracket, 90o return bracket, and 24" xl2" xl8" handicap loop.

Colors are white and black.

- Please visit www.timbertech.com

Lantern Shoos Bugs

A decorative lighted lantern from ThermaCell creates a 15'x15'bus-

free zone outdoors on the patio or deck. It reportedly repels up to 987o of mosquitoes, plus black flies and "nosee-ums." An easy-to-use alternative to lotions and spray, it has no open flame or messy wax.

- Please visit www.mosquitorepellant.com

Decorative Hardware

Amerock's newest collection of decorative hardware offers a quick, affordable way to refresh and personalize a kitchen.

Revitalize includes three coordinating knobs, decorative pulls, and appliance hardware in the New Traditionalism style. Available finishes are gilded bronze, satin nickel, and oil-rubbed bronze.

- Please visit www.amerock.com

Composite Goes Solid

MoistureShield composite decking from A.E.R.T. is now available in a solid-board profile.

Featuring a deep-embossed woodgrain texture on both sides, the product can be installed with either side up-making installation faster and easler.

The decking can be ordered with or without grooved sides in six colors: Cape Cod gray, earthtone, rustic cedar, seasoned mahogany, terracotta, and desert sand.

- Vi sit www .moi stur e s hie ld.c om

PVC Railing In A Snap

Gossen's cellular PVC railine has a snap-lock design for easy asse-mbly and is color-matched to its WeatherReady and Passport decking.

A snap-in connector locks balusters into pre-spaced, 8 ft. top and bottom rails without screws or other fasteners.

- Please call (800) 558-8981 or visit www.gossencorp

Single-Handle Faucets

Three new single-handle lavatory faucets from Moen meet WaterSense guidelines.

The RGX3800 delivers a maximum output of 3,800 watts and can operate continuously for 9.5 hours. It also features an automatic idle control, which lowers the engine speed when no electrical power is needed.

- Please call (847) 540-7300 or vi s it www .s ubarupower.com

Greener Doors

CraftMaster Green doors from CMI are made with sustainable materials, recycled content, and low-VOC primers and adhesives.

The Rothbury, Eva and Brantford collection faucets have water efficient aerators that allow water to flow at 1.5 gallons per minute, versus traditional aerators that flow at2.2 gpm.

Finishes include LifeShine brushed nickel, chrome and oil-rubbed bronze.

- Please call (800) 289-6636 or visit www.moen.com

Petite Power Sources

Compact generators from Subaru were designed to meet the needs of contractors and homeowners.

The RGX3000 is powered by a 6hp EXlT engine for a maximum output of 3,000 watts and 10.3 hours of continuous operation.

The doors come in all CraftMaster raised panel and molded door designs. Each has a solid Greenlite fiberboard core to provide the heft, weight and sound-deadening properties of a solid wood door.

- Visit www.craftmasterdoors.com

Easy Lumber Mover

The Cart Mule lumber cart mover is ergonomically designed to easily push or pull heavy loads, with less labor and fewer employee injuries. Because the unit is batterv oDerat-

ed, it produces no emissions. It reportedly provides improved maneuverability, while a dynamic braking system allows quick, safe stopping.

- Please call (800) 900-6853 or v isit www.cartmule.com

Custom Millwork Pattenrs in Sofiu'ottds & Hardw'oclds - Custotn Rltns ol'Pairtt Grade

Poplar Moulclings a Specialty

Moulclings Siding Trirrr Picccs

Wholesulc LLtrrtbcr Rcclu ood - L'ppcrs

Douglas Iiir l)inc Hartlu ootls - Wcstcrtt Rctl (lctl:rl'

Greener Gypsum Board

'l-ern p Ic- I n lancl' s (l lccnCi lass I'iberglass-facccl tntcriot. g)'l)suln boarcl proviclcs molcl pf()tcction lirr witlls. ccilings ancl dinrensional accents.

Thc prorlLrct contairts at lcast 90%' recycled contcllt. illl(l TcrnShiclcl nrolcl protcctiorr is engiriccretl into itr ut psttttl corc. :\r'ailublc thickncsscs lrc l/2" and -5/8", in witlths ol' .111" and -54". in lcngths o1'8'. l0' antl | 2'.

- (-ttll (E00) :-l 1-6060 rtr vi.sit x'n'w.tattrpleinlurul t ottt

Exotic Composite Decking

Horizon Tropics is thc netcst line of' conrpositc dcckirts It'otn Fihcr CtrtttPostle r.

'fhe ncn litte is manufacturctl l'rorn high-density lloly ethvlenc and wootl I'ibcr.

Each l2'. 16'. and l0'board cornbirres thc lottk ol trop icul harclwood with the stain. faclc-. mold ancl scratch rcsistance ol conrl-lositcs.

Cu|| ( 800) 57 I-881 I ttr visit r trtr.l'ibcrttrult't kirt.q.t rtttt

Insulating Studs

EcoStuds f-r'orr Supcrior I)ol1'rrrcr Products can bc usecl iLs cn\ lronnrcntally friendll, furring solutions lor block or poured concrcte lvalls.

Produced tront rccycled rcsin. thc products reportedly do not rot. rust, corrode. or suppofi rnold clr termitcs.

Build A Better Deck

DcckTools dcsign soltlvur-c l'rorl Sinrpson Strong-Tic allous clcck builders and supplicls to brirtr lthoto rcrlistic deck designs to cLlst()lncr\ right 1r'oni thcir Iaptops.

Uscrs can create onc-of-a kind dcsigns with practical clcsign elc

nrcnts. such as uhat tastcncrs arc nccclccl.

Thcr can thcn gencrate hard copics, such us strLrctr-rlul clrawings ftrr perrlit rrpplications. norking drawings for builtlirr-g crcu s. ancl finished views frtr ll( rl I l('( )\\ ll!'l it\\(rr'iirl i()tt\.

Thcy ploviclc a thermal break rvhen attacl'rccl dircctly to cxterior concretc or blOck.'fhcy arc not reconlrended lirr interior walls.

EcoStuds carr bc usecl with all n,pcs tll' ittsttllttiott lo P1111 itlt. lr tottliltttou: nroisturc barr-icr anrl insulation ltackage.

They crlnte l.-5" ll,idc bt' .3.-5" dce1.l and in t3'lengths. w'ith l0'ancl Il' lengths availablc bv sltccial urclc-r'.

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BVC Doweled

Lodgepole pine post, poles & rails

Doweled Rail Fencing

2" BVC Tree Stakes

3" BVC Tree Posts

Light Posts

Standard and Fancy Bollards

Special Milling: Spiit, Quartered, Slabbed, Sanded, Smooth Peeled & Hand Peeled

Available Textures

Natural (No Bark)

Tough economic times put family businesses to the test

By Mark Green and Amy Schuman

D ECENTLY, a good friend confidl\ed in me that she's been waking up in the middle of the night wonied about the economy and its effect on her family and business. She's not alone.

Business-owning families across the country are concerned about the economic slowdown. For many, the demands and tensions of tough economic times highlight even more clearly the need for trust and oPen communication between family members. These demands and tensions also emphasize the need for economic discipline, clear policies, and well-established systems of family and business sovernance.

Over the last 15 years of economic prosperity, the financial success of many family businesses has spawned a number of bad habits. A recent meeting I had with a client led to a discussion of the economic outlook in his industry-rising fuel costs together with a more competitive landscaPe have led to a shrinking bottom line. The natural tendency in tough economic times is to cut costs and consider letting some employees go. Upon further discussion with my client, it became clear that the family members management positions were reacting to the pressures without a clear understanding of the true cause of their financial troubles or the likely financial impact of their decisions.

I asked the founder of the business how he ran the business seven years ago, when it was growing rapidly. As expected, I heard that there were regular

weekly meetings that included a review of the financials, in-depth analysis of budgets, revenue, and cost trends. My client admitted that as the business grew and profitability exploded, the budget process became less disciplined. Weekly meetings became monthly meetings, and then disappeared altogether. Further discussion also revealed that family tensions were ignored as the business grew and bank accounts expanded.

Suppression of family conflict did not resolve it, but only made it more deep-seated. This lack of financial discipline, combined with increasing tension in the family and a shrinking bottom line, were leading to a real challenge. Beyond economic discipline, families must have the discipline to stick to their policies and succession plans. Families can avoid creating additional tension at an already challenging time by enforcing discipline in all areas of family business planning.

Managing the intersection of the three systems present in a family business-family, business, and owner-

ship-is a key to family business success. Tough economic times create stress across the system. Business performance may suffer and tough decisions need to be made. Family conflicts, which are easy to ignore when the return from the business is good, rise to the surface during an economic downturn. Family members not in the business may blame those who are for not addressing financial problems sooner. Owners must deal with the possibility of cutting back on distributions or possibly even selling the busiNESS.

The tendency is to ignore policies and processes when times get tough. However, a sound family business infrastructure is even more crucial in tough economic times. But there does need to be some flexibility in policies and processes to address unforeseen challenges. Families must consider the long-term implications of breaking rules they originally made in the best interest of the business and family. Here are some tips for addressing a downtown:

Buitd or return to sound business management practices.

Tracking and enforcing responsibility for financial results is important in good economic times, but it is essential in a downturn. Creating a realistic budget to ensure that revenues will cover costs is also imperative. This exercise should consider what areas can be cut back if revenues shrink substantially. Once the budget is complete, create a process for tracking Per-

formance against the budget so that any changes in the environment faced by the business are identified quickly. Developing solutions in areas that are not tracking against the budget and then holding management accountable for delivering results (or alternative solutions if budget expectations are no longer realistic) are a natural outgrowth of the process. Last, but not least, it is critical in uncertain times to hold regular management meetings where the team can discuss changes in the business environment and also develop plans to address them.

Be prepared for lower distributions.

A business that has prospered over the years and always paid generous distributions or dividends to its shareholders may find it difficult to meet these payouts during challenging economic times. A family shareholder group that has taken the time and effort to learn about the business and the factors that make their dividends possible-rather than a shareholder group that has just accepted their dividend checks without any effort to understand what lies behind themwill be in a much better position to anticipate and adapt to changes in their dividends.

Stick to your employment policy. Many families require members of the next generation to work outside of the business for several years before they can work in the family business. However, when the economy slows and a well-paying, desirable job is tough to find, the family may be tempted to ignore its employment policy and hire young family members right out of college. The family may ask, "What good is having a business if we can't help the kids during tough times?" A valid question-but perhaps the members of the family would be wise to remember why they created the policy requirement in the first place. Most family members are able to make more significant and enduring contributions to their business after having a chance to learn in other work settings. Just because it's very difficult to find work. is that requirement no longer relevant?

Rather than simply ignoring the established policy, a family must seek ways to help young, inexperienced family members without abandoning its stated policy. There are many ways to accomplish this, and each family

will find its own way. For example, the family business can help family members with resume development, interview preparation, or even introductions to possible employers.

Honor the succession plan.

A father or grandfather who has turned management of the business over to members of the next generation is often tempted to jump back into action during tough times. The family may welcome and encourage their involvement because of Dad's or Grandpa's history of success under pressure. Will the family allow the current leadership to lead or will there be too much fear for the family to place its trust in the next generation's leaders?

An "either/or" solution is not the answer. Finding a way to access the wisdom of the senior generation without cutting off the junior generation will be imperative. Combining the wisdom of the past with the talents of the present will be the key to success in these tough times.

A family's response to these economic times could be seen as a test of will and commitment. A family shareholder group may question policies and governance systems that were created during times of peace, calm, and even prosperity. Will the family stick with its policies, even if individual or collective suffering results in the short term? What will take precedence: the needs of the business, or the needs of the brother who requires his dividends for a mortgage payment or the sister whose daughter needs a job?

Al1 systems will begin to fray or fracture at their weakest point when the going gets rough and pressure starts to build. A family system is no different. Many family businesses are seeing and feeling more than a few cracks in response to increased economic pressure. By returning to the tried and true-strong governance, agreed-upon policies, family education-families can use the challenges of these tough times to become even stronger and more unified.

- Mark Green is an associate of the Family Business Consulting Group, Marietta, Ga. He can be reached at (800) 55 I -0633 or green@ efamilybusiness.com. Amy Schuman is a principal of the firm and can be reached at (800) 551-0633 or s c human @ efamily b u s ne s s .c o m.

LUMBER ASSOCIATION of California & Nevada's 2nd Growth group held its summer conference July 17-19 in La Quinta, Ca. (1) Tom & Karin Angel. (2) Mike Carey, Beth Bollen. (3) David Abbott, Jean Henning. (4) Laurel & Chuck Casey. (5) Tammy & Tim Kennedy. (6) Grant Pearsal., John Pasqualetto. (7) Jay & Holly McArthur. (8) Michael Caputo, Steve Prado. (9) Joe Allotta, John Neel. (10) Steve & Jenny Robertson, PhilGallicchio. (11) Dannv Sosa. Greo Scott. (12) Maooie & Eddie Garrett. (13) Pete Danny Sosa, Grej Sbott. (12) Maggie (13) Pelg Ganahl, Joe Lstiburek. (14) Chris Henderson, Larry Christensen. (15)

Adam & Canie Sherwood. (16) Kevin Mitchell, Johnny Pringle. (17) Mark & Susan Preece. (18) Mike & Diana Schumaker. (19) Jason & Melissa Womack. (20) Rex & Jamie Klopfer. (21) Stacey & Chris Freeman.

Coatings, Preservatives On The Rise

Demand for wood protection coatings and preservatives is forecast to increase 2.27o per year to $3 billion in 2013, according to a new Freedonia Group study.

A rebound in the housing market will promote growth. Demand will also benefit from a shift in product mix to higher value items, a slight upswing in pressure treated lumber production, and solid residential repair and improvement spending.

Higher value formulations in both coatings and preservatives continue to gain market share, primarily due to environmental and performance issues.

Interior applications such as flooring and cabinetry, however, will outpace growth in exterior uses. In order to maintain wood's marketshare in interior applications, wood coatings suppliers will strive to develop product lines that feature a wider range of colors, improved efficiency and enhanced durability. In addition, suppliers are addressing demands for "green" materials with environmentally friendlier formulations.

Ironically, the longevity of interior wood limits gains in coatings demand, as maintenance requirements are infrequent.

In exterior applications such as siding, wood will continue to suffer losses to competitive materials that require less maintenance, resulting in a difficult market environment for wood protection coatings and preservatives suppliers. However, maintenance coatings demand will continue to be supported by the large installed base of woodbased home exteriors and decks.

Decking remains the largest consumer of wood protection products. In 2008, decking accounted for 21Vo of the $2.7-billion wood protection market, followed by siding with 2l%o, furniture at l3%o, and cabinets at 107o.

Mill Cited For Stormwater Runoff

Manke Lumber, Tacoma, Wa., was given 30 days to appeal or pay a $69,900 fine for ongoing stormwater management problems at its mill along Tacoma's Hylebos Waterway.

A Manke official said the company is trying to get any alleged problems under control and has not yet decided whether to appeal the fine.

The mill's permit requires that it monitor and test stormwater runoff that drains to the Hylebos and into Commencement Bay.

Manke was fined two years ago after inspectors first identified storm-water problems at the facility.

Six months ago, officials with the Washington

Department of Ecology discovered that water used to clean the mill's air scrubber unit was overflowing and discharging to a storm-water pond and the Hylebos Waterway.

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Rates: $1.20 per word (25 word minimum) or. if contains artwork or oversized type, rate is by the column inch (2-l18 inches wide): $65 if we set the type, $55 if ad is fumished "camera-ready" (advertiser sets type).

as I word. address as 6 words. Headline or centered

LUMBERTRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation.607o split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

copy, $9 per line. Border, $9. Private box. $15. Send ad copy to 4-500 Campus Dr., Ste. .180. Newport Beach, Ca. 92660, Fax 949-852-0231, dkoenig@building-products.com, or call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: lllth of previous month.

The October issue of Zhe Merchant Magazine will include a special supplement for lumber wholesaling's top event, the NAWLATraders Market.

The issue will also be handed out at the show and mailed with the October issue of our eastern publication, Building P ro duct s D i ge st, guaranteeing a national audience of 22000+.

Deadline: Sept. 1.

For rates or more info, contact: Chuck Casey (ccasey@ building-products.com) or Alan Oakes (ajoakes@ aol.com), (949) 852-1990.

"lSlS is excellent value. and the flexibility has been everything that was promised."

CRC Closing Orick Sawmill

California Redwood Co. will close its Orick, Ca., sawmill in mid-October due to depressed lumber demand.

The mill's large log processing equipment, including head rig and edger, will then be moved to its Korbel, Ca., facility by January.

In the near term, the 125-acre Orick site will continue to be used as a sorting yard. Forty-seven positions will be eliminated.

The mill was built 55 years ago by Arcata Redwood Co. and sold to Simpson Timber, now CRC, in 1988.

Hardware Store Sues Worker

Big Jo True Value Hardware, Santa Fe., N.M., has filed suit against a former employee who last year pleaded guilty to misappropriating thousands of dollars from the store.

Krista Quintana confessed to one count of fraud and had l0 counts of forgery dismissed.

According to a 2008 plea agreement, she agreed to at least five years probation, to repay Big Jo up to $67 ,4O4 in restitution, and to sign a promissory note for any unpaid balance of the restitution.

Big Jo, however, is seeking compensatory, punitive and exemplary damages, plus interest and other relief.

Asgociotion llews

(Continued from page 24)

Tournament at Costa Mesa Golf & Country Club, Costa Mesa, Ca., to

benefit the Hardwood Forest Foundation. An awards dinner will follow.

Western Hardwood Association will sponsor its annual lumber-grading school Oct. 15-16 at the CFS Morgan warehouse in Portland, Or.

Students will learn about western hardwood grades and how to apply them, the application of proprietary grades, and the importance of "on grade" to profitability.

Accommodations and meals are not included.

Western Wood Products Association's Lumber Pioneers group will hold its annual meeting Sept. 18 at the Monarch Hotel, Clackamas, Or.

National Hardwood Lumber Association has booked former New York City mayor Rudy Giuliani to keynote its annual convention Sept. 30-Oct. I in Boston, Ma.

Other highlights will include programs by the Hardwood Forest Foundation, Hardwood Federation lunch, cocktail reception, exhibitor appreciation lunch, and educational seminars.

he moved to Blackman Lumber, Oakland, Ca.

In 1971 , he and his partner, Jim Kronenberg, bought Hulbert. Six years ago, Mr. Kinney sold his share to his partner and retired.

He was a past president and active member of the Oakland Hoo-Hoo Club.

Phytlis Maureen Holmes-Hautala, 64, co-owner and co-operator of Fred C. Holmes Lumber, Fort Bragg, Ca., and Dusty Creek Lumber, El Dorado Hills, Ca., died of cancer June 29 in El Dorado Hills.

The Holmes family has owned the businesses for five generations, since Joseph H. Holmes started Holmes Eureka Lumber in 1903. Dusky Creek Lumber, a retail yard, opened in 1984.

Robert B. Pamplin Sr., 97, former c.e.o., president and chairman of Georgia-Pacific Corp., Atlanta, Ga., died June 24 in Portland, Or.

Frank Kinney, Tl, retired owner of Hulbert Lumber, Newark, Ca., died July 12 in Newark.

He started working for his uncle, Bud Kinney, in the 1950s at Western Dry Kiln, Alameda, Ca. In the 1960s,

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In 1934, he joined newly formed Georgia Hardwood Lumber Co., Augusta, Ga., as an accountant. Over the years, he helped expand the company into the Pacific Northwest and transform it into G-P, while pioneering plywood production in the South. He became president in 1957 and was named chairman and c.e.o. 10 years later. He retired in 1976.

He then joined his son to form R.B. Pamplin Corp., with holdings that included Oregon's Ross Island Sand & Gravel Co. and South Carolinas' Mount Vernon Mills Inc.

Fontana

Sournrnl Clutonln

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

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

Pacific Wood Preservin9...............................(7 14). 701 -97 42

Parr Lumber C0...... ,......(909) 627-0953

Redwood Empire.... .......(909) 296-9611

ReerLumber(Anaheim)..,...........,...,.... l?l?131!-1333

Reel Lumber Service (Riverside) ..................(sst i zgt-oso+

Hegal Custom Mi|1w0rk..................................(7141 776-1673 014\632-2488

Reliable Wholesale

ARCATA / EUREKA/ FORTUNA

Calilornia

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ArchwoodProtection........... ..............(530) 533-7814

California Cascade Industries.......................(916) 736-3353

Capital 1umber...................(209) 946-1200 (866) 946'2280

Capitol Plywood...... .......(916)

.......(559) 994-1393

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

MODESTO

Big Creek Lumber Co. (Atwater/Merced). (209)qq&1{9

Thunderbolt Wood Treating...,.......................(800) 826'8709 (209) 869-4561

REDDING / RED BLUFF

Gemini Forest Produc1s,.,...........,..................(530) 223-7440

Pacific Wood Preserving...............................(530) 824-9400

shasta Green Inc...,..,...,...........,...,............. .(530) 335-4924

Srskiyou Forest Products...............,....... .....(800) qz4-g?19 (530) 938-2771

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

LTWOOD REATING

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Wood Tleating Services Since 1977

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Lumber Products.... .......(800) 926-7103 North Pacilic ................(800) 547-8440 Pacific Wood Preserving...............................(503) 843-2122 Stimson Lumber..... .......(800) 445-9758 Thunderbolt Wood Treating...........................(909) 393-71 07

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Quolity Western Cedor Products

BALU$ERS in 35,

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W595Tunne|Ave.,San'ffihff:lxtfH;3:.'#11.Fax415-467-8144

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FAX to 949-852-023L or call (949) 852-1990 or mail to BPD, 4500 Campus Dr., Ste.480, Newport Beach, Ca. 92660.

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For more information from advertisers, use the Web site in brackets, Ainsworth [www.ainsworth,ca] Anfinson Lurnber Sales [www.anfinson.com]

..............-.-..--.-...........37

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

Keller Lumber Co...............,,, .........45

Krauter Solutions Iwww.krauter-storagecom] ............................32

LifeTime Composites IwwwJtlumbercom].....................................3 Lumber Products Iwww.lumberproducts.com] .........,.,.,..............36

Lumbermen's Underwriting Alliance Iwww.lumbermensunderwriting.com] ............................Cover II

M&M Builders Supply

Manke Lumber Co. [www.mankelumber.com] ...................,.....,..22

Mount Storm Forest Products [www.rnountstormcom] ..............41

Norman Distribution Inc. [www.normandist.com]........................11

North Pacifi c [www.northpacificcom]

Osmose [www.osmose.com] .............-.. .....................5

Pennsylvania Lumbermens Mutual Insurance Co.

Plastic Components Inc. Iwww.plasticomponentsrcom]...............39

Redwood Empire Iwww,redwoodempcom]...................................19

Reel Lumber [www.reellumber.com].......... ...........27

Regal Custom Millwork ,................27

Reid & Wright Iwww.reidwright.coml ...........................................13

RISI [www.risiinfo.com/crows]

RoyOMartin [www.royomartin,com] .................,.....E

Swanson Group Sales Co. Iwwwswansongroupinc.coml ...........,....,.......-..-..........Cover III

Thunderbolt Wood Treating [www.thunderboltwoodtreating.com] ...,,.....,...44

Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net]....45

Western Red Cedar Lumber Association [www.wrcla.ord .........21

Wynndel Lumber Iwww.wynndellumber.com]...,,,........................29

GGr L