2 minute read

Forest Gitytsflagship hes 50

Next Article
DATE Book

DATE Book

had started in Portland in 1964. In 1971, Jack McKinnon was aPPointed president of AIFP, which then absorbed the personnel and assets of Buckeye Wholesale Lumber. Three years later, AIFP Trading Group was established as a corporate office to handle the growing management and financial functions-and its name was changed to Forest City Trading Group.

"McKinnon saw value in operating competitive, yet related, companies, so he developed a business structure that encourages and provides opportunities for capable leaders and aspiring traders," says Scott Elston, vice president of business development. "AIFP was the largest and most versatile of our companies. Our other companies grew from it, depending on specialty and leadership."

group is well-positioned for another 50 years of success.

$onesr Cnv Trading Group's flagL'ship company, American International Forest Products, is celebrating its 50th anniversary. Since 1964, American International and the Forest City group of companies have grown and prospered in a challenging industry.

However, the group's history goes back even further, to 1921, when the

Ratner family started Forest CitY Enterprises, Cleveland, Oh., to serve local builders. In 1950, the family opened Buckeye Wholesale Lumber in Portland, to provide western lumber to FCE's yards in the Midwest. When lumber prices increased in the late 1960s, FCE acquired American International Forest Products, a successful wholesaler that

In 1972, the Buckeye Pacific name was revived for a new division in Portland, followed by the opening of Olympic Industries in Vancouver, B.C. Birmingham International Forest Products, Birmingham, Al., started in 197 5 , followed by Tampa International Forest Products, Tampa, Fl., in 1976.

In 1982, Viking Forest Products in Eden Prairie, Mn., was purchased. Seaboard International Forest Products, Nashua, N.H., and Richmond International Forest Products, Glen Allen, Va., were formed in 1983. Plateau Forest Products, Bend, Or., started as a subsidiary in 1985.

"Jack McKinnon gave proven traders increased responsibility," says Elston. "As each company spun off, our supporting processes-credit lines, computer support, transportation, trader trading-grew stronger." ln 2004, Johnston and a team of senior executives led an employee purchase of the group from Forest City Enterprises. "We had outgrown our relationship with them-they were heavily involved in real estate-so they agreed to let us purchase ourselves," he says.

McKinnon passed away in 1989, but his company values still guide the group. "His belief that getting the best people and providing them the best opportunities continues today," says Craig Johnston, FCTG's current president and c.e.o.

With the addition of Southern Mississippi Trading, Waynesboro, Ms., in 2010, the group had grown to l0 subsidiaries and two branches-plus 50 inventory locations. More than 280 traders deliver a wide variety of forest products to lumber dealers and distributors, home centers. wood treaters, and industrial accounts.

"When you work with any of our subsidiaries, there's no need to worry about the details because we back every trade," says Elston. "As we go forward, Forest City Trading Group will continue to look for opportunities to stay strong in an evolving industry."

One example of growth is the newest member of FCTG, which will open this month: Global LBM Marketing LLC, Portland, Or. This mill sales division will focus on regional and independent lumber and panel producers, and help maximize mill sales returns by leveraging and utilizing the entire FCTG channel of traders and markets. "This new division is a great fit and an opportunity to find the best markets and channels for independent producers," says Elston.

On Sept. 5, American International Forest products will host an Open House to celebrate its 50th anniversary and thank its customers and supply partners. President John Vranizan says about AIFP's past, "Since 1964, AIFp has been a wholesale building material industry leader that is dedicated to creating opportunity for our partners," he says. "Looking forward, we will continue to grow by offering creative supply solutions with traders specializing in lumber, panels, industrial, steel, and value-added products."

FCTG's Johnston also recognizes the support of loyal employees and trading partners. "They've allowed us to survive the past 50 years-and we are poised for tremendous growth going forward," he says. "It's all about doing what we say, creating opportunities for our employees, and bringing value to our trading partners. If we aggressively continue to do that, I expect another 50 successful years ahead."

This article is from: