etitiue ligenGe Growing for good

By Carla Waldemar

ffOW do you get to Carnegie Hall? llAs they told the tourist on the sidewalks of New York, "Practice, practice, practice." And how does your company acquire five stores in the brief l0 years it's been in business? Same answer, though not a duty performed in front of a music stand.

In 1977, when Barney Wagner launched Arrow Lumber, Buckley, Wa., he'd already devoted close to 40 years to working in lumberyards, including-multi-locations compan ies. clocking in for other bosses in preparation for pursuing his lifelong dream of owning his own mini-empire of lumber centers. (Lest you think he's basking in his dream fulfillment from the rocking chair of an old-folks' home, let's note this: Barney swept his first sawdust at age 12 and hasn't looked back since.)

Not the usual kids' career goal, true. As he explains it, "You needed a summer job to buy school clothes, and choices were limited in the Northwest." Compared with his sister's option - picking berries - picking 2x4s sounded pretty good. Plus, he mentions, "it gave me a leg up. I took interest in things, looked at products, read the labels, and later, learned how houses were put together."

His next position, moving on to Vaughan's Building Materials in 1963, was doing yard duties and, when needed, helping out in sales"difficult at that young age," he recalls, "because of the age gap, serving and working with people much older"he's 16 by now-"but it taught me to work real hard to gain respect. And that philosophy is still with me today: If people respect the boss, they'll do everything they can to help. So that's how I operate. I'm not one to demand performance out of fear."

Instead, Barney leads his 100-plus employees by walking the talk. "I'm a real hands-on guy," he says. "I spend 507o of my time in the office, but 50Vo in the yard or behind the counter. I have a Class A CDL license and I drive semis-and I teach people with their learners' permits. I have a 7'7year-old commodities purchaser, and if he's not on duty, I pitch in for him. I work hand-in-hand with my employees, multi-tasking, cross-training and leading by example." And that example is based on the old-fashioned, high-road values he ticks off: "honesty, integrity and hard work."

Progressing, after a stint in the Navy, to climb the ladder at Al Meier's, a six-chain operation where his title became v.p. and general manager in 1991 and continued after the chain was acquired by Lumbermen's, as director of operations. overseeing 40 stores and absorbing info that would prove invaluable when it came time to set out on his own.

"I learned a lot of different ways people do business in multi-stores," he says. "I gained an understanding of different types of stores, which really helped. Each store had its own strengths. I'd find things that worked-and, if not, understand why they didn't."

Then. in 1997 it was time. After cutting a whole lot of bait, he was prepared to start fishing. Barney launched Arrow Lumber & Hardware in tiny Eatonville, and a precedent was set. Well, a couple of them: "My goal, from the outset. was to own multistores and," Barney emphasizes, "in rural markets. We love these small towns and have become part of the community in which we operate; we bond with the customers. the schools, the city officials, the food banks. We've increased our inventories to give customers added product selection. And we give back a large percentage of the profits to schools, food banks and civic causes."

"My goal," he underscores, "is not to make money, but leave a legacy as a top-notch organization. That means more to me than a big number on the bottom line."

(Those dual mission statementsopening more stores, giving backcame to a boil together recently when, in opening his fifth location in Orting in July 2006, he proceeded, as is his custom, to take out another insurance policy on himself to cover the company should mishaps befall him. During the required medical exam, Barney learned he had prostate cancer-"a message," he took it, "from the Man Upstairs." Thus, among other causes, Arrow now runs five food banks (and supports another) where, working in his usual hands-on fashion around Thanksgiving, Barney heard things like, "After the recent floods here, we'd lost everything. But we'l1 have a nice Thanksgiving because of you."

What's with these small townsEatonville, Buckley, Port Orchard, Randle and Orring-anyway? "I love rural communities," he professes, adding, "It's the responsibility of business to give back to them-give them services, employment and tax revenue." That Man Upstairs would probably agree. But what about the one in the accounting office? "We can do that and still be profitable," he insists, pointing out that owning five stores gives him better purchasing power and clout with vendors. But, as by now you might expect. when it comes to vendors Arrow's not in for the short haul. The company has cultivated "long, longtime relationships. We don't beat 'em up-so, rvhen they've got a special deal, they call us."

So do customers, both pro and retail, disenchanted with the big boxes down the road. where "service is not their forte. People can't find what they want. Plus." the man reveals a lucrative niche, "we can get specialty items, like house packs for ownerbuilt homes. (We supply everything from the planning stages to the finished house.) An order for a house pack comes in and they're got it the next day-or I-joists, or beams.... With five yards, we're our suppliers' biggest customer, so they get us the Ipacks by the next morning." Talk about customer satislaction.

Arrow caters not just to homeowners putting up houses and vacation cabins. It lures the farm and rural business as well as a healthy slice of housing developments ("The economy is still growing in the Northwest," Barncy reports), along with military, commercial and industrial accounts rvhich demand "a little bit harder" work for Arrow. "It's more specficied, more detailed." And worth it.

Pros love dealing with Arrow not only because of its pro-friendly equipment, such as forklifts, but also because, as Barney laughs, "We never turn down an order-even going into swing shift if we have to. We're flexible. For instance, while we officially open at 7:00, for our vendor of engineered wood products, we're here for him at 6:15."

And how is that feat accomplished-by passing out sleeping bags and chaining yardmen to the gate? Barney's got a better retention strategy, starting with "great benefits: life, medical, dental and vision insurance, a 40lk plan to which lve contribute 67o, paid vacations, paid tuition. For a company our size. turnover is verl low. Some of the people here even followed me from my previous jobs. We promote from rvithin; people working sales can become assistant managers. And for managers, we share their store's P&I- rvith them on a monthly basis. because I kind of feel knowledge is porverful, and helps others."

Ask Barney if there are more stores on the horizon, then get out of the way. "Oh, yes!" he sallies back. "And for that purpose, we've developed an infrastructure. At Arrow. a senior manager wears a couple of hats-as director of operations he'l| also serve as the general manager of a store. When it's time, we'll move him to the corporate office and move the next person up. Training the next in line is an ongoing process."

This puts Arrow pointing squarely in the right direction: smart, steady growth. What keeps this Robin Hood behind the c.e.o.'s desk aiming for more? "l just love lhe business. everything about it." Barney summarizes. Just as he knew he lvould at 12.

- A former att'ard-tt'inrtirtg LBM trude magaz.ine editor, Carla Waldemar ',vrite,s fiequentlv on the indttstn'. Contact her at cwaldemar@ mn.rr.com.