Merchant Magazine - September 2008

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

ProBuild knows building malerials and carries products that will perlorm, time alter time, phase after phase.

Custom panelization, cut pack capacity, truss manufacturing and installation services focus on project solutions so contractors and builders can focus on project profitability,

Wtth manufacturing and drstribution fac lrt es throughout the United States ProBurd has the abrlrty to provrde the products necessary to meet project deadlrnes

t,..i

Building ten homes or a thousand ProBu ld has the scale to accommodate shortand longlternt needs By managing lobsrte delrveries supportinq production schedu es and product f ows prolects are completed on time

Local managers knolv the ioca marketand manage on-the-ground inventories to meet local needs

A FBL

Innovation and dependabiLity make up the fibers ofour company and the products we create.

We understand that your customers count on you to seek out the most distinctive and retiable new products. That's why we've ted the industry in devetoping innovative timber products, [ike Accuruff"i our rough-sawn product with a uniformty apptied rustic finish, and Tru-Dry', the most consistentty and evenly dried Douglas f ir product avaitabte. We are committed to providing you with outstanding forest products that remain strong and beautifuI for generations.

Selvlng l3 Weaterrr strte., Ineludlng Alask!.nd H.w.ii

(Sistet publication Building h1ducts Digcst seiles the East)

PUBLISHER Alan Oakes (ajoakes@aol.com)

PUBIISHER EIIERIIUS David Cutler

EDIT0B David Koenig (dkoenig@building-products.com)

ASS0GIATE EDIT0R Karen Debats (kdebats@building-products.c0m)

COIITRIBUTII{G EDITORS Dwight Curran, Carla Waldemar, Roy Burleson

A0 SALES MAIIAGEB Chuck Casev (ccasey@building-proddcts.com)

CIRCULATI0I{ Heather Kellv (hkelly@building:products.com)

ADMIIIISTRATIOII DIRECT(IB/SECREIAEY Marie 0akes (mfpoakes@aol.com)

How to Advertise

Conlael our advedising olflccs l0r ratss:

WEST, ttllDwEST, S0UTHEAST: Chuck Casey, Newport Beach, Ca.; (9a9) 852-1990; Fax 949-8520231 ; Email ccasey@building-products.com

I{0BTHEAST: Paul Mummolo (N.J.); (732) 8998102; Fax 732-899-2758; Email mummolop@ c0mcast.0et

How to Subscribe

Gontacl Healher at (949) 852-1990

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It's all about who you know

Over the last couple of months, I've had a few people call to let me know they had left their companyunfortunately not of their own volition. No doubt times are hard and there are many in similar situations.

It got me thinking about when I had been in similar straits in my career. What seems a brave new world to conquer can quickly turn quite dark and foreboding, especially iffinding a new job is not something you have done in a long time. You quickly learn that experience isn't everything, and there is a lot of competition for that same new job. Equally, if it is about wanting to find a better job when ready to move on, or simply getting new clients to build business, this can also be daunting to all of us. I have long since learned that it's important to find someone who can guide you successfully through the minefield.

Networking is key to understanding what is going on around you and can provide a sounding board when you need help. I know that two of my c.e.o. positions came about from prior networking. One job I left because I just wanted to, was the hardest to rebound from because I had been in an isolated position and had not networked. This suggests that the best time to network is when you are in a job, not out of one. Then you also quickly learn [ho your friends are and who were just using you.

But networkins doesn't come natu-

rally to many of us. It makes some of us uneasy. Whether you are in a job or out of one, you have to learn to effectively use the knowledge and power of the many people you come into contact with. Networking is not only important with your business contacts but also with contacts you have through your community and social circles. This industry offers many, many ways to network at the myriad association events held throughout the country each year. Utilizing that base of knowledge at the right time can help you through difficult situations.

I recently read that about 807o of all jobs are garnered from direct or indirect connections (yes, the old rule applies here, too). Speaking with industry acquaintances at industry events, being on industry committees, targeting contacts in different parts of the industry, all become valuable networking opportunities when done right. Keeping in contact with your old company or past colleagues builds up that circle of life that one day might be able to help you.

The best time to introduce yourselves to headhunters is before you need them, not when you need them. Many companies don't advertise or even post jobs. so having connections to people inside those companies who can act as a conduit is vital. A referral from an employee who takes your resume to HR and lifts your resume to the top of the stack gives you a 70Vo

greater chance of being interviewed. Believe me, picking out whom to interview can be so arbitary. My experience tells me that most resumes get discounted within 20 seconds, especially if you have a desk of 500 resumes for one job (and I have had that many times).

And what about building your sales funnel? I know personally how tough in can be to break into certain industries or companies. I try to find contacts who can help me through the front door-or often the back door. How much easier it is when I can say "I was speaking with John Brown at XYZ, who says you are a good friend of his and suggested I give you a call to see if I can help you do ..." Or how much better if John Brown called his friend to say " I have asked Alan Oakes to call you next week to introduce himself, as he gave me great service, and I think you might want to hear him out." You get the point. Sometimes you need help to build your network, and it is never ending.

Now let me say that it is a two-way street. When someone approaches you for advice and help-give itl Do unto others as you would have done unto you. Go out of your way if you have to, because the time may well come when you need the same help.

Similarly, do not expect that if you were a jerk throughout your career that anyone will help you, because they won't. It is always interesting to me that the people who never return your calls make you the first one on their list when they need help.

Last year I helped an ex-manager of mine in a different industry land a job after he was unemployed for many months. I called twice to the president of a company to be grilled about my former colleague's performance at my company, and he got the job. My reward, not that I wanted one, was not even a call acknowledging he got the job or thanking me for helping him. Go figure. What comes around goes around.

CnrtroRNIA PnrrtntuM* REowooD DtcKrNG

California Premium redwood decking is the top-of-the-line dimension lumber product in the Cnlrronmrn Rgowooo CorupnNv Redwood Collection. lt is graded visually to limit knots and other characteristics that detract from its quality appearance. This makes it perfect for outdoor projects where high-quality appearance is demanded.

Redwood naturally resists shrinking and swelling. California Premium is air seasoned to reduce moisture content, making it even more dimensionally stable. This means that California Premium redwood decking goes down flat and stays flat.

Available in dimensions SfS EE: 2x6, pulled to lengths 8' - 20'

2x4, 2x8, 2x10, 2x12, 4x4 available in group lengths of g" 10'/14" 16,/20,

Calf 1-8OO- 637 -7 O77 for dastributor details and product specifications.

O2008 California Redwood Company. Use of the SFl6 label indicates ihat Califomia Redwood Company is a participant in the SFI program and that our operations and facilities have been certified by an independent auditor to be in comOliance, in all material respects, with the SFI Standard and SFI label guidelines. For more informstion on the SFI program, visit

www.aboutsfi.org.

L.TORTH American structural wood

I \ panel production is expected to roral 31.66 billion sq. fr. (3/8" basis) this year, down l SVo from last year

plywood

By Jack Merry APA-The Engineered Wood Association

and 26Vo from the record 43.1 billion sq. ft. of plywood and OSB produced in 2005, according to the annual fall forecast of APA-The Ensineered

Wood Association.

Production next year may be even slightly less, according to the forecast, (Continued on next page)

OSB 2OO7 r Producers Begin Paring Back

The highs ol2NO took a turn for the worse in 2(N7, as most OSB manufacturers, faced with waning demand and prices, began reining in productlor*a trend that has continued to heat up in recent monhts,

Louisiana-kcific Corp., Nashville, Tn., has been the longtime leader in OSB production with

One method for coping was converting its millin Houlton, Me., to LSL production. A more efficient, state-of-the-art OSB mill in Clarke County, Al., was recently completed and is "ramping up operations."

but necessary economic deei$ion," said Jeff Wagner, v.p.-OSB. "Unfortunately, current conditions require these types of action."

BUILDING PRODUCTS

13 OSB plants in North America. Last year, the mills produced 5.5 billion sq. ft. of OSB, 8.57o below 2006 levels, but still enough to account tor 23o/o of all OSB sold in the U.S. and Canada.

However,last year LP was forced to permanently close its OSB mill in St. Michel, P.Q. Last month, the millin Silsbee, Tx., was also shut down, for an indefinite period. "Ongoing turmoil in the market pushed demand for most of our products significantly lower than the same quarter last year,' said c.e.o. Rick Frost in late July.

At the SmartSide mill in Hayward, Wi., production has been curtailed until at least October 31, 2008. 'The curtailment is a difficult

Norbord, Toronto, has gone against the trend to cut back by actually increasing production at its nine OSB millsto rnore than 5 bil,

lion sq. ft. in 2007. ltalso attempt' ed to weather the downturn by shipping more OSB to Europe.

*Our management team worked hard to educate European homebuilders on the benefits of using

(Continued on next page)

'OB OSB & Plywood

(Continued from previous page) with output falling another 37o to 30.87 billion ft.

That outlook is based on the expectation that U.S. single-family and multi-family housing starts will total just 880,000, down from about 910,000 this year. Housing starts are down by more than half since the peak of the housing market boom in 2005. Single-family starts have experienced the most severe declines, falling from 1.716 million in 2005 to an anticipated 610,000 this year.

Softwood plywood production is forecast to total 12.57 billion sq. ft. this year, down nearly l4%o from last year, while OSB output is expected to reach 19.1 billion ft.,a20Vo drop. The larger drop of OSB production is a

osB 20a7

(Continued from previous page)

OSB," said c.e.o. Barrie Shineton. 'We believe that the continuing acceptance of OSB will supPort future growth, especially in Eastern Europe."

Shineton is less optimistic about OSB sales in Nofth America.

'There are several market adjustments that must occur before we see a meaningfulimProvement in housing starts and strong OSB prices," he said.'We believe all these things will happen, but not before 2010."

Weyerhaeusot, Federal Way, Wa., which had enjoyed record, near-capacity OSB Production in 2006, cut back by 18% in 2007, to 3.4 billion sq. ft.

A rreyerhaeuser

Then, during this past summer, Weyco permanently closed three of its nine OSB mills. In July, the company shuttered mills in Drayton Valley, Alb., and Hudson Bay, Sask. Both facilities are being maintained for possible reopening once the market picks up or the company decides to sell them.

"Continued challenges in the

reflection of that product's greater reliance on the residential construction market. Approximately 807o of the 12.59 billion sq. ft. of structural wood panels expected to be used in residential construction this year is OSB.

Production of both plywood and OSB next year is forecast to decline an additional 2-3Vo.

Declines are also forecast this year and next for engineered wood framing products, such as glulam timber, wood I-joists, and laminated veneer lumber. Glulam production is expected this year to fall by 22Vo to 300 million bd. ft., I-joist production by 3OVo to 675 million linear ft., and LVL production by 27Vo to 55 million cu. ft.

The still unknown housing market low point remains a forecast wild card. Residential construction remains the single largest market for structural

North American housing market require us to bring supply into balance with demand,'said Phil Dennet, v.p,-strand lechnologies. 'lt is the result of today's challenging business environment.'

In June 2008, unable to find a buyer, Weyco permanently closed its mill in Miramichi, New Brunswick-which has not operated since January 2007.

'We worked hard to sellthe facility for more than one year," said Craig Nesser, president of Canadian operations. "A lack of buyer interest, the continuing poor state of the U.S. housing market, and the high cost of maintaining this idled site led to the company's decision."

Ai nsworth, Vancouver, 8.C., is operating only four of its seven OSB mills. OverallOSB production slipped 16% in 2007 to 2.3 billion sq. ft., and should lallfurther in'08.

Its mill in Grand Rapids, Mi., has been idle since September 2006. The plant in High Level, Alb., which

Atnsworth

is jointly owned with Grant Forest Products, has been down since late last year. lts Cook, Mn., mill went dark this past January.

wood panels, and the percentage of North American production going to residential construction is expected to fall to 40Vo, compared with 48Vo last year and 6l%o in2OO5.

The outlook for next year could be somewhat better if the Housing Recovery Act of 2008 has the desired effect of stemming 400,000 foreclosures, perking up the credit system, and getting more buyers into the market, the forecast suggests. In that case, there might be 100000 additional single-family and multi-family housing starts, resulting in almost one billion square feet of additional structural wood panel demand.

Under that scenario, glulam, wood I-joist, and LVL production also would be expected to rise by 15 million bd. ft., 35 million linear ft., and 5 million cu. ft., respectively.

The company recently emerged from restructuring after three bondholders gained 96% control of the company, usurping Allen, Brian, and Catherine Ainsworth-who were president, chairman, and c.e.o. of the business founded bY their parents in 1950.

Georgia Pacific, Atlanta, Ga., continues to operate seven OSB mills under its own name, as part of Koch Forest Products. Its OSB millin Fordyce, Ar., was down briefly last month, following an early morning fire. Although the facility suffered "significanf damage, production was resumed after machinery was tested.

Grant Forest Products, Earlton, Ont., is adjusting the prod' uct mix at three of its five OSB facilities.

Its flaghip mill in Englehart is producing two new flooring products: Rainblock and Flooring Plus.

ln South Carolina, the

The industry's production to capacity ratio is expected to drop this year to just 737o, down from 86Vo last year and a high of 97Vo during the peak of the housing boom in 2004-2005. The substantially lower demand resulting from collapse of the housing market has made structural wood panels an extremely good bargain over the past several months compared with other building materials. According to the Bureau of Labor Statistics, the cost of steel and concrete products has increased l00%o and 3570, respectively, over the last four years, while the cost of wood products over the same period has fallen 6Vo.

Excluding trans-border shipments between the U.S. and Canada, structural plywood and OSB imports by the two countries are forecast this vear to

total 530 million sq. ft., down 37Vo from last year and 807o from 2005. The drop continues a trend that began in 2006 and is most pronounced in the U.S. as a result of the housing market collapse and low valuation of the U.S. dollar, which drives up import costs.

The escalation of transportation costs also is a factor. That trend is expected to reverse direction next year, however, with imports continuing to rise in ensuing years in response to improving U.S. housing market conditions and a strengthening U.S. dollar.

U.S. and Canadian panel exports, again excluding trade between the two countries, are expected this year to total 1.25 billion ft., up just slightly from last year but an increase of 1387o from 2005. That trend, too, is expected

to moderate with improving domestic market conditions and a halt in the decline of the value of the U.S dollar.

The longer term forecast is for the U.S. housing market to begin a recovery in 2010, with housing starts rising to 1.55 million in 2011 and 1.9 million two years later. That would help boost North American structural wood panel production to a record 45.4 billion sq. ft. in 2013.

Founded in 1933 and based in Tacoma, Wa., APA represents approximately 160 plywood, OSB, glulam timber, wood I-joist, rim board, and LVL mills throughout the U.S. and Canada. APA's primary functions are quality auditing and testing, applied research, and market support and development.

Allendale County mill is producing 8'x24' jumbo OSB panels for export worldwide. At its new millin Clarendon County, S.C., equipment is being installed to make two new OSB products-Thermoblock and Windblock-once the market picks up.

Its millin Timmons, Ont., remains closed, due to both market conditions and an ongoing strike. The High Level milljointly owned with Ainsworth is also shut down indefinitely.

Huber Engineered Woods, Charlotte, N.C., announced that its five OSB mills

Erucrne:Reo WooDs

will undergo the yearly inspection required for renewal of Sustainable Forestry Initiative certification.

Tolko Industries, Vernon, 8.C., which operates three OSB mills in Canada, indefinitely mothballed its millin High Prairie, Alb., in February.

"Restart will be considered when there are meaningful and sustain-

able improvements in the business conditions that prompted this announcement,' said Brad Thorlakson, president of marketing and sales. 'These include improved customer demand in key markets, transportation and energy costs, and competitively priced wood supply."

In early July, employees moved into the company's new building in downtown Vernon. According to Jim Baskerville, regional operations manager, work on the building was begun two years agHefore the industry was hit with .uncertain market conditions."

Canfor, Vancouver, B.C., planned to indefinitely close one of iis two O$B mills, the PolarBoard OSB mill in Fort Nelson, this summer, once existing log inventories were depleted and finished products were shipped.

state-of-the-art OSB mill in Oakdale, La., and is now exporting OSB panels to Europe.

Langboard, Quitman, Ga., reports that extra-long lenglhs and other specialty products are selling

l:IIl found diflf lll iaranr mor-

and are better diversified, which will serve us well when the outlook gets better," said sales manager Chuck Rigoni. "Commercial and multi-family construction is also picking up again."

"As the market

LAr\FiORslump continues without evidence of a tumaround, Canfor must continue to adjust iis production to address reduced market demands," said president and c.e.o. Jim Shephard.

Roy O. Martin, Abxandria, La., sought new markets for its

Arbec Forest Products, St. Leonard, P.Q., reported lhat its

single millin St. Georges de Champlin, P.Q., was closed from Aprilto June. Limited production was resumed in July.

Redwo relqiler pro

rnHE California Redwood

|. Association has launched a pilot program to reach out to independent lumber retailers and drive redwood sales. The goal is two-fold: to thank retailers for carrying redwood, and to encourage contractors to purchase more redwood from participating retailers.

"We've done deck contests in the past," says Bob Mion, marketing director for CRA, "but not like this. This is more than a contest. This should become the cornerstone of a partner program and an increased presence in the supply chain."

The "Build a Deck, Win a Deck" contest has been promoted primarily online and through in-store efforts. There has been a radio advertising component as well.

"We recognize that independent lumber retailers will be an important part of our future and that contractors are one of our most critical audiences." Mion says. "This program is designed to encourage repeat business, increase product loyalty, and solidify relationships to help retailers be successful with redwood."

The deck contest is at the heart of the program. Entries can be submitted online through a graphic link on each participating retailer's website. Decks

built after January 2OO7 are eligible to be entered. Decks must be clean and able to be photographed well. The deadline for entries is September 30, 2008. A panel of experts will judge the entries. and one winner will be selected from each participating retail location.

Retailers receive a payment from the CRA for participating in the program, and contractors submitting a winning entry will receive a $3,000 store credit toward the future purchase of redwood products. Pictures of the winning decks will likely be used in future CRA promotions.

"In our past deck contests," Mion says, "we've had national-level partners sponsoring our events. This time the focus is squarely on the independent retailer. The initial response has been overwhelmingly favorable. We're reaching out to retailers and helping retailers reach out to some of their most important customers."

Redwood continues to be a popular choice for outdoor projects. Its resistance to rot and decay plus its distinctive look make redwood a preferred product for decking, fencing, gazebos and architectural accent features.

"Our redwood decking sales have been relatively strong," says Steve Stevenson, Truckee Tahoe Lumber,

Truckee, Ca. "Redwood is a very good performer for us. Especially in mountain and foothill communities, people like the natural look and feel of redwood. Contractors like redwood because it provides good value, it's durable, and leads to high customer satisfaction. We move a lot of redwood, and programs like the one the California Redwood Association has put together help create that much more enthusiasm for the product."

Mion notes that the CRA partner program is in its infancy and that the "Build a Deck. Win a Deck" contest is a pilot program. The contest features eight participating retailers in Northern Californra markets.

"We want to be more active with our partners throughout the supply chain," he says. "We hope to use what we learn from this experience to build the program and expand the campaign going forward. We started in our own back yard, and we plan to grow from there."

- Details on the " Build a Deck. Win a Deck" promotion and entry forms can be found at www.deckcontest.com. For more information about redwctod or the CRA redwood sales training program, visit www.cqlredwctod.org or contact Bob Mion at rmion@ cal redwood.or p.

ITHE

construction of new homes

I reached a 17-vear low this summer, according to ihe U.S. Commerce Department, yet renovations and remodels are increasingly popular.

To capitalize on this burgeoning opportunity, lumber and building material dealers should understand the two primary reasons why homeowners are remodeling, renovating and adding on to their homes: to improve quality of life or improve resale value, or both.

In a soft real estate market, homeowners can significantly improve their sales price by sprucing up the curb appeal to entice prospective buyers. Instead of moving, some homeowners are also planning upgrades with the intent to stay in their home

$ell rn red Gedar s of all kinds

Projects can be as simple as sprucing up the landscaping with a western red cedar arbor, trellises, or adding a wood fence to increase privacy. Or they can take the form of a pergola or even a gazebo or deck to expand the outdoor living space. From the smallest project to the grandest, western red cedar's versatility can add beauty to the outside of a home.

Western red cedar offers endless choices to fit the style of any house. It is free from pitch and resin, making it ideal for a wide range of stains and finishes. Stains can bring a new, enhanced hue to the wood. Clear finishes can also be applied to add an extra level of protection without altering the wood's natural beauty. Or, the wood can be left alone with its natural resistance to decay, allowing the wood to develop an elegant weathered appearance.

for a long time. Either way, retail sales success hinges on providing highest quality, versatile and environmentally friendly materials, such as western red cedar.

0utdoor improvements

Homeowners seeking to improve their living spaces are not making the traditionally popular-yet costlyupgrades to kitchens and baths. Instead, they are adding to the curb appeal with outdoor structures, or landscaping, if they are planning to sell. Or, if they are planning to stay, they are investing in do-it-yourself type projects and projects to enhance and expand living spaces. Projects can vary depending on a homeowner's level of commitment.

Ouality materials

High-quality and long-lasting materials are important to people making home improvements. Curb appeal improvements-such as landscaping, new paint, or outdoor structures like trellises and pergolas-grab the prospective customer's attention. However, homeowners need to make the whole package appealing, which means it has to be long-lasting, lowmaintenance, and visually attractive.

Western red cedar is a commonly used material for these outdoor projects because the homeowner doesn't have to compromise beauty for durability. Compounds in the wood naturally resist insects and decay in all climates, and the wood is known for its

Durastrand Flooring features an enhanced edge-seal and an engineered blend of waxes and resins that block moisture and reduce or eliminate swelling even in harsh conditions. Plus it comes with a go-day no sand and 5o-year guarantee against delamination and manufacturing defects. co for the new choice in flooring, and forget the usual hassles and call-backs.

rich color and variety of tones. The even grain and consistent density make western red cedar less likely to swell, warp, cup or twist than other woods.

"Homeowners may initially save money with cheaper materials," says Richard White, an Oregon-based architect who specializes in custom homes. "But in the long run, they are holding down the potential value of their home."

Just like the prospective customer who looks for quality materials, homeowners seeking to upgrade their current living space also want high-quality, long-lasting materials. While they are living in their homes, they are more willing to spend more to make the improvements that they want most on materials such as western red cedar that add natural beauty and will last for years.

Sticking with what works

Residential contractors and homeowners should avoid popular fads when upgrading homes. Whether homeowners are fixing to sell or are improving their place for the long

haul, traditionally popular materials maintain a home's appeal through years ofevolving fads.

"People trust building materials they know," White says. "If I grew up in a home with western red cedar siding, I know the qualities of the wood and what it will do for my home."

Long a traditional favorite, western red cedar has a number of qualities that make it a preferred, quality material for decking, siding, and the increasingly popular outdoor living spaces that can enhance a home's value, White says. Natural preservatives in the wood make it very durable for outdoor uses and curb appeal projects, even in more severe climates. Its texture and coloration give it a rich, natural beauty that enhances interiors as well, in features such as interior paneling, vaulted ceilings, trim and boxed-in beams.

The green movement

Retailers all across the country are experiencing the consumer-driven green movement. Contractors are increasingly concerned about energy efficiency. and homeowners give more

thought to the renewable supplies of their materials.

Homeowners seeking to improve their residence look at the steps a product takes to reach their home. Retailers are increasingly supplying them with products furnished in a sustainable manner.

Good examples of earth-friendly materials are woods such as western red cedar, pine and fir, which are renewable resources that are grown and harvested sustainably. The environmental costs of production are much less in wood products than in mineral or synthetic materials. The natural properties of western red cedar further lessen a structure's environmental footprint by eliminating the need for chemical pressure treatments.

Homeowners are making long-term investments with sustainable materials. It is an investment in the resale value and an investment in quality of life.

When homeowners are upgrading a home, either to sell or to stay, they should look for materials with a tradition of quality, durability and environmental responsibility.

SPRUCING UP existing homes with quality materials, such as western red cedar garden structures and siding, is where the money is

Bailouts hit close to horne

By Gary Zauner Crow's Weekly Market Report

Opinion aside, studies show that "politically connected" firms are more likely to be bailed out than "non-politically connected" firms. One comprehensive study of 450 firms in 35 countries found that those firms linked more closely to political engines "exhibit significantly worse financial performance than their non-connected peers at the time of a bailout and over the following two years."

1f\NE of the great debates that \-f appear during difficult economic times, when institutions that steer economies experience fiscal difficulties, is whether government bailouts are appropriate or necessary.

This argument hits closer to home now that a string of bailouts and potential bailouts has sprouted from highly questionable mortgage lending practices and their influence on a vulnerable U.S. economy. While the government tries to save lending institutions from their own irresponsible behavior and demise, homeowners may also receive relief for agreeing to questionable mortgages that could very well be described as "too good to be true."

For many, the question of whether bailouts are appropriate or necessary revolves around whether a particular bailout is for the greater good of the economy and country. For others, bailouts do nothing but deteriorate the ethical fiber, will and strength of an economy. For yet others, bailouts, if utilized, should be fair and equitable for both institutions and individuals.

Bailouts are also usually considered when governments perceive that intervention is good for the overall economy. The Chrysler bailout in 1979 consisted of guaranteed loans of $1.5 billion and helped save thousands of jobs. The savings and loan bailout in 1989 came after hundreds of savings and loans failed, costing the U.S. government $124 billion. Two weeks after 9/l I and in response to a dramatic drop in airline passengers, a bailout of $15 billion was extended to already unprofitable airlines. Those same airlines today are still struggling to stay profitable. The perception at the time of each of these bailouts was that without extending a parachute, the country's economy would have suffered considerable harm.

The National Association of Homebuilders has been unabashedly backing a housing "stimulus" package in light of the dramatic decline in home construction over the past couple of years. The bill was recently passed by the House and is now awaiting a vote in the Senate, where aPProval is expected soon. According to NAHB, "The American Housing Rescue and Foreclosure Prevention Act contains

several provisions that would help put the economy back on track, save jobs, and restore confidence."

Provisions in the bill would make it easier for struggling homeowners to refinance their subprime loans to prevent foreclosures and to increase access to affordable mortgage credit. According to NAHB, the Congressional Budget Office estimates this could help as many as 400000 struggling homeowners stay in their homes. In other words, the bill would bail out homeowners, limit the amount of available homes in the market, and get builders back to building faster.

Meanwhile, opponents of the bailout raise a valid point: Why should the government bail out homebuilders when they helped create the mess in the first place? It is a viable question, particularly when thousands of homebuilders made more money in the latest housing boom than theY could have ever imagined. Now, the government is ready to provide them with aid when many either failed to see or react to the bubble bursting, some thinking the good times would last forever.

As a result of the current housing crunch, homebuilders are blaming lending institutions and lenders are blaming homebuilders for the cuffent MESS.

They are not the only two entities crying for government intervention. The National Association of Realtors and the Mortgage Bankers Association are also looking for help following a period in which their members compiled record profits.

In the words of one economist,

"We are at a crossroads in the history of American capitalism," regarding bailouts and how they are handled.

Perhaps the single most pressing concern regarding bailouts is the one often referred to as "moral hazard." It is the prospect that an element of risk makes people and institutions act differently than when little to no risk exists. Take the person who dog paddles to the deep end of the pool, knowing lifeguards are there to pluck him out if something goes wrong. When no consequences for one's actions exist, caution is thrown to the wind, leaving another party, in this case the lifeguard, to bear some responsibility for the consequences of those actions. It is theorized that when this continues to occur, lenders and homebuyers become less cautious, which in turn deteriorates the integrity of markets and the economy.

The theory of moral hazard is just that-theory-and not an acceptable explanation to many as to why governments should not bail out institutions. After all, they say, just because a person has dental insurance doesn't mean they will stop brushing their teeth. Some argue that bailouts, which are usually in the form of low interest loans backed by subsidies from taxpayers, are often less expensive than the alternative. One example would be keeping airlines operating, which provides more competition and less expensive airline tickets.

Complicating matters is the potential bailout of Freddie Mac and Fannie Mae, two government-sponsored lending institutions that are somewhat insulated from the same risks private or public companies must face. Together, they support nearly TOVo of all U.S. mortgages worth trillions of dollars. The reason for the potential bailout is that the two mortgage giants nearly collapsed after jittery investors sold off a large number of Fannie and Freddie stocks.

Treasury Secretary Henry Paulson announced that both the Treasury and the Federal Reserve will lend money and buy stock in both companies if needed to shore up the faltering firms.

It has been argued for years that Freddie Mac and Fannie Mae should have their ties to the federal government severed. Opponents of this arrangement between government and institution argue it is a breeding ground for moral hazard, in which the government plays lifeguard for institutions and industries in over their heads with debt.

If the sell-off of Freddie Mac and Fannie Mae stocks does not necessarily point to the degree of the housing crisis, it certainly speaks to the sentiment of investors regarding the current debacle mortgage lenders have created. Homebuyers who accepted those questionable mortgages, sometimes at llo%o of their home's worth, are not without responsibility, either.

Taking bailouts a step further, what about the forest products industry? If buyers, builders and bankers are considered for bailouts, why not lumber and panel producers? Do markets based on prices generated through the dynamics of supply and demand warrant a little boost when housing construction slows to a crawl?

Despite the importance of the LBM industry, bailouts would be unlikely. After all, it would appear that a significant amount of mismanagement, fraud, ignorance and "connection" is needed to warrant a bailout.

- Mr. Zauner is senior news editor for "Crow's Weekly Market Report," the longest-running source of prices in the North American lumber and panel industry. Free trial subscriptions are available at www.risiinfo.com/crows.

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etitive ligence Mentored by one in amillion

By Carla Waldemar

LUMBER& IIARDWARE

p ACK in high school, Shawn Roehr drew up a proposal l)for a dreamed-up lumberyard-he called it Arrow-as a project for his business class. Today, he's working there.

That hypothetical classroom exercise was solid enough to carry his entry from small-town Buckley, Wa., to the state competition and then on to the nationals, passing the strict judgment of real-life business people, who vetted each entry to assure the hypothetical "new business" stood solid enough to secure a bank loan.

"I knew since high school that I wanted to work in a lumberyard"-how crazy is that?-"because that's all I'd done," Shawn recounts a decade later. "I worked under Barney Wagner, who was also a friend and neighbor, at Lumbermen's. He helped me prepare the proposal because, while I knew the yard part, I had no idea about the financials."

So when Wagner left Lumbermen's in 1997 to pursue his own dream of launching a mini-empire of independent lumberyards on his own (see "Competitive Intelligence," Sept.2007), he nudged young (very young) Shawn (he's 32 at the moment) to come along: "Let's start something new."

Voila, as they say in cities a whole lot bigger than Buckley: Arrow Lumber (nice name!) was born, "using a lot of the same principles as we use today," says Shawn, now v.p. "I wanted to get in on the new venture, help it grow, give it our best. And work with Barney," he adds, an important factor-a mentor in a million.

Not only their best, they gave it their all. Coming from a behemoth corporation with what Shawn calls a "huge" staff, Arrow's fledgling crew of six (including Shawn and Barney) "had to do everything that had to be done. For instance, when a customer needed something we didn't have, we'd drive miles to Home Depot or Eagle every night and bring it back, so they would have it first thing in the morning.

"We didn't offer more types of services per se, we were just willing to do things faster. When the guys down the

road would take two weeks for a materials list, we'd have it in a day or two. As a small, new business, we'd do anything to set ourselves apart from the competition. If needed, we'd be outside, building loads or running deliveries. Barney'll still drive a truck-how many presidents do that?" poses Shawn, in admiration.

But then, how many presidents resist the temptation to micro-manage and instead encourage their promising people to rise as fast as they demonstrate they can? "If a competitor turned a job down, saying they were too busy, we'd get it done. Still do," Shawn professes.

Six months later, Shawn was promoted to store manager. "Things kind of progressed," he offers with an awshucks humility akin to that of his boss. In fact, Shawn was just named North American Retail Hardware Association's Young Retailer of the Year for multiple locationsbecause, in the 10 years Arrow has been up and running, the company has acquired four more stores, all also in small Washington towns, and a sixth is about to join the roster.

Arrow grew fast. "And the larger you get, the harder it is to keep the same attitude," Shawn acknowledges. The key, he feels, is "to hire like-minded people who want to keep customers happy. People tend to get stuck in their roles, but we'll push 'em outside their comfort zones. We look for attitude first, and experience second."

"In many businesses, it's the other way around," he's found. "For us, willingness in the most important thing."

Shawn became the go-to guy when it proved time for a new computer system, as, in 2006, Arrow acquired additional locations. "We eliminated the manual paperwork in favor of emailing invoices and using signature captures. No more filing and un-filing, which saves a lot of time and money. It wasn't cheap, but it was well worth it," he declares.

At the original Buckley store, Shawn designed the floor plan (drawing on that high school business project) and built the shelves-the only operation Arrow has built from the ground up.

At Eatonville, he tripled existing floor space by removing walls; which also allowed him to add new product lines based on listening to customers' feedback. Same for Port Orchard, "another old building to which we added on." By redesigning and remodeling one yard after another under Shawn's eye, Arrow multiplied sales. In fact, they're now nine times what they were initially-no small impact on the bottom line.

"We took the good features from each store-what works for one will probably be good for all-and also implemented our own ideas, such as offering package sales. We started out small, with decks, and have expanded to other categories, like garages and pole buildings. We really have a good program for people who like to buy projects complete; they may not have the vision, ar architect, so we eliminate the work and stress and do it for them. Plus," he adds an important aside, "the margins are good."

But, cookie cutters? Never. "Each store retains its own business niche; different markets require different identities, he explains. "For instance, in communities where there's little retail competition, we focus on the builder, and vice-versa. Our ideal store would be 50/50, d-i-y and pro. We work toward that split," aiming to distribute the eggs into different market baskets.

Other services that help Anow hit the target: free material takeoffs and free delivery for pros. ("We'd love to charge for delivery"-Wouldn't we all these days?-"but none of the competition does. As soon as they start, we'll jump right on it!" Shawn insists.

And, yes, there's plenty of competition out there"some good operations we have a lot of respect for, and others where we think we can do better; they get big and bullish and start telling their customers what they can and cannot do. We, however, believe the customer is boss; they tell us what whey want and need."

And right now, what they seem to need is-a sixth store. Coming right up. Count on Shawn to be on hand to nurture its staffers, prodding them to tap what's within them, just as he's been guided, and given lots of rein. He's not going anywhere anytime soon, he says. And why

should he? He's fulfilling his high-school dream, rising from assistant manager to general manager to v.p. in the time it takes to say, "Stand out of his way."

And the key to that success story, Shawn is quick to remind us: "Barney." For independent dealers around the country looking at the future of their own operations, encouraging a young hire to achieve his best for the company isn't such a bad idea.

- Aformer award-winning LBM tade magazine editor, Carla Waldemar writes frequently on the industy. Contact her at cwaldemar@ comcast .net

YOUNG EXEC Shawn Roehr (far right, shown with his children and wife, Anne), proposed the idea for Washington State's Arrow Lumber while in high school.

Rrrln:rs

Lumber Plus True ry'alue, Kanab, Ut., celebrated the grand re-opening of its newly renovated store July 25-26 ...

Stringham Lumber, S. Salt Lake City, Ut., suffered a July 30 fire that caused $100,000 in damages; one employee was taken to the hospital for smoke inhalation

Anderson Hardware will hold a grand opening Sept. 12-14 for its new 229OO-sq. ft. Ace Hardware store in Wellington, Co.; Vicky and Doug Anderson, owners

General True Value Hardware, Denver, Co., is liquidating after 98 years, so the owners can sell the property...

Ace Hardware, Woodland, Wa., moved into larger, newly remodeled quarters next door ...

Home Depot opened new stores Aug. 21 in Warrenton, Or. (Lori Sarancik, store mgr.), and Aug. 14 in Pahrump, Nv. (Justin T. Keedy, mgr.)...

Home Depot signed a 35-year lease for a site in Ontario, Ca.. and hopes to break ground in Spokane, Wa., in the spring ...

Lowe's Cos. opened a new store Sept. 2 in S. Chino Hills, Ca.; has begun construction in Pacoima, Ca.; got the go-ahead to build in

Send us your news!

Have your recent expansion, promotions or other company changes published in the next issue o{ Ihe Merchant Magazine.

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

(a trce seruice)

Rialto, Ca., and has abandoned plans to add a unit in Rocklin, Ca., due to planning commission restrictions...

Habitat for Humanity recently opened ReStore discount LBM stores in Temecula, Ca., and Portales, N.M.; is moving its Maui, Hi., ReStore from Happy Valley to a larger facility in Wailuku, and is adding a 4,000-sq. ft. second level to its 9,000-sq. ft. store in Carbondale, Co.

Wolseley plc. is reportedly considering selling off 302-unit Stock Building Supply ...

BMC West, Boise, Id., received a Partner of Choice Award from DavidWeekley Homes ...

Hines Horticulture, Irvine, Ca., has filed for Chapter 11 bankruptcy protection as it works to sell its assets to Black Diamond Capital Management, LLC ...

Wror:rlrrns/trrurrtrurrrs

Peery Brothers Lumber, City of Industry, Ca., installed a milling operation and expanded its FSC inventory to include timbers, fire treated, and preservative treated

Warm Springs Forest Products Industries, Madras, Or., has entered into an agreement with Vanport Internationnl, Boring, Or., to custom cut logs for the international market; roughly 80Vo of the production will be for export

Crown Building Materials, Portland, Or., has been acquired by Norandex Building Materials Distributio,n, Hudson, Oh., which hopes to move the operation to a larger facility

North Pacffic's Napa, Ca., distribution center is now stocking FSC-certified OSB from Roy O. Martin's new mill in Oakdale, La., including Tuff Strand, StrucWall,

StructWall XL. and The Grid brands, for next-day delivery throughout Northern California

Allied Building Products is now distributing ZP SmartSide trim and siding nationwide from its 140 branches...

Boise Cascade has eliminated one shift at its La Grande, Or., sawmill for an indefinite period

Jeld-Wen, Klamath Falls, Or., is closing its window and door manufacturing plant in Gainesville, Ga., and will use the facility as a sales and distribution office ...

Reid & Wright,lnc., Broomfield, Co., has earned triple chainof-custodv certification-from the Forest'stewardship Council, Sustainable Forestry Initiative, and Programme for the Endorsement of Forest Certification

Forest Products Marketing received FSC chain-of-custody certification for its offices in Oroville and Woodland. Ca. ...

Mary's River Lumber Co., Corvallis, Or., was presented the 2008 Best of Corvallis Award among lumber companies by the U .5. Incal Business Association

Anniversaries: Dixieline Lumber Co., San Diego, Ca., 95th ... Tirnber Products, Springfield, Or., 90th ... Nelson's Ace Hardware, whitefish, Mt., 60rh ... Reid & Wright, Inc., Broomfield, Co., 60th EarthSource Forest Products (formerly PALS), Oakland, Ca., 25th...

Housing starts in July fell IlVo to a seasonally adjusted annual rate of 965.000-the lowest level in more than 17 years single-family starts slipped 2.9Vo to 641,000 annual pace ... permits dropped I7.7Vo to a rate of 937.000.

- CORRECTION -

West Coast Juniper, Chiloquin, Or., does not export juniper logs to China for processing into flooring products (as reported on pg.40, Aug.2008), but does ship cants or larger blocks for remanufacture into flooring or furniture.

Listings are often submitted months in advance. Always vertfy dates aid locations with sponsor before making plans to attend.

Srprrilsrn

Lumber Association of California & Nevada - Sept. 10, 2nd Growth meeting, Red Lion, Redding, Ca.; (916) 369-7501

Sierra Pacific Industries - Sept. 11, open house, Anderson, Ca.; (530) 378-8000.

BC Wood - Sept. 11-13, global buyer's mission, Whistler Conference Center, Whistler, B.C.; (877) 422-9663

Mountain States Lumber & Building Material Dealers Association - Sept. 12, Western Slope golf tournament, Rifle Creek Golf Course, Rifle, Co.; (303) 292-9500.

Hoo-Hoo International - Sept' 12'17, annual convention, Murano Hotel, Tacoma, Wa.; (800) 979-9950.

Lumber Assn. of California & Nevada - Sept. 16, PAC baseball night, McAfee Coliseum, Oakland, Ca.; (916) 369-'15Ol

Willamette Valley Hoo-Hoo Club - Sept. 17' trap shoot, Sportsman's Club, Creswell, Or.; (541) 485-5979

Los Angeles Hardwood Lumberman's Club - Sept. 18' 8th annual golf tournament, Costa Mesa Country Club, Costa Mesa, Ca.; (626) 445-8556.

Jensen Distribution Services - Sept' 18-20, fall market, Spokane Convention Center, Spokane, Wa'; (509) 624-1321

Ace Hardware Corp. - Sept. 19'22,fall market, St. Louis, Mo.; (630) 990-'7662.

APA-The Engineered Wood Association - Sept. 20-23, annual meeting & expo, Ritz Carlton Lake Las Vegas, Henderson, Nv.; (253) 565-6600.

Lumber Quality Institute - Sept. 22-23,lumber quality & process control workshop; Sept. 24'25, leadetship workshop,

Corvallis, Or.; (541) 231-8628.

Setzer Forest Products - Sept. 26,25th annual golf tournament, Sacramento, Ca.; (916) 442-2555.

Lumber Association of California & Nevada - Sept. 30, safety/ risk management day, Marriott Sacramento, Rancho Cordova, Ca.; (916) 369-7501.

Ocrorrn

Building Component Manufacturers Conference - Oct. 1'3, Colorado Convention Center, Denver, Co'; (608) 310-6722.

California Forestry Challenge - Oct. 1'4, Sly Park Environmental Center, Pollock Pines, Ca.; (916) 369-7501.

Lumber Assn. of California & Nevada - Oct.2, safety/risk management day, Marriott, Riverside, Ca.; (916) 369-7501

Mountain States Lumber & Building Material Dealers Associ' ation - Oct.2-4, fall conference, Sonnenalp Resort, Vail' Co.; (303) 292-9sOO.

National Lumber & Building Material Dealers AssociationOct.2-4, industry summit, Westin La Palma Resort & Spa, Tucson, Az.; (800) 634-8645.

Lumber Association of California & Nevada - Oct. 8, LBM testing seminars, Marriott, Riverside, Ca.; Oct. 9, Marriott, San Diego, Ca.; (916) 369-7501.

National Hardwood Lumber Association - Oct. 8-11, annual convention. Marriott. San Francisco, Ca.; (800) 933-0318.

Remodeling & Decorating Show - Oct' 10-12, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950.

Do It Best Corp. - Oct. 11-14, fall market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300.

Association of Millwork Distributors - Oct. 11-16, annual convention, Gaylord Palms, Kissimmee, Fl.; (727) 372-3665.

True Value Co. - Oct. 17-20,fall market, Atlanta, Ga'; (7'13) 695-5000.

Mountain States Lumber & Building Material Dealers Association - Oct.22, operations management seminar; Oct.23, outside sales seminar, Grand Junction, Co.; (303) 292-9500.

qlion news

Lumber Association of California & Nevada will present safety-risk management workshops Sept. 30 at the Maffiott Sacramento. Rancho Cordova, Ca., and Oct. 2 at the Maniott, Riverside. Ca.

Labor attorney Mary Farrell will discuss labor laws and compliance issues. Loss specialist Eric Taylor, Owen-Dunn Insurance Services. will speak on CaIOSHA inspections and forklift accidents. Distracted driving and hiring practices will be discussed by Federuted Insurance.

Seminars on testing lumber and building materials will be Oct. 8 at the Riverside Marriott, Riverside, Ca., and Oct. 9 at the Residence Inn by Marriott, San Diego. Both are presented by the California Department of Food & Agriculture's division of measurement standards.

On Nov. 6. members will meet at the Marriott Napa Valley Hotel & Spa

for two days of meetings and prescntations at LACN's annual convention.

A golf tournament at Chardonnay Golf Club. Napa, will start the event. That evening is an opening reception.

Day two will feature a government affairs update by LACN lobbyists and educational programs on such topics as proactive selling strategies for tough times, collecting money through mechanic's liens, and making your business more valuable during an economic downturn.

The last night will include a silent auction, the president's dinner, and entertainment by the Joe Stoddard Show.

Western Building Material Association is offering a trio of seminars next month at its Kincaid Learning Center, Olympia, Wa. A yard foreman class is set for Oct. 8. business management l0l Oct. 9, and estimating

workshops Oct. 14- 15.

WBMA's l05th annual convention will be Nov. l2-14 at the Red Lion. Seattle, Wa. Chris Rader, Rader Solutions, will speak on "Making a Profit in a Down Market," discussing how to increase margins and encourruge employee producti vity.

Mountain States Lumber & Building Material Dealers will converge on Sonnenalp Resort, Vail, Co., Oct.2-4 for its annual fall conference.

Keynote speaker is John D. Wagner. author of nine books on home building. Dena Cordova, regional sales manager fbr Foxworth-Galbraith, will share a 2008 economic overview and 2009 projections for the mountain region. Greg Shope, Alpine Lumber, will discuss "Green Building: Here and Now."

MSLBMDA is sponsoring a pair of seminars by Mike Butts, LBM Solutions-"Operations Management fbr Today's Lumberyard" Oct. 22 and "Business Management l0l for Outside Sales Reps" Oct. 23, both at Hampton Inn & Suites, Grand Junction. Co.

On Nov. I 3, B ill Lee, Lee Resources, will share "Action Steps to Boost Sales & Productivity" at Holiday Inn Central, Denver, Co.

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When to preclose the sale

By James Olsen

t tD 8ffi 'fii" j,ll ":.T"TJ; ;i teacher told me 28 years ago as I walked into the teacher's lounge as an idealistic student teacher.

Teachers like that shouldn't be allowed around kids, but that's another article. But his point was well made. If you show weakness with a classroom full of 15-year-olds, you'll have a mutiny on your hands.

How does this apply to sales? Many salespeople think they are losing the order at closing, when actually they've lost the order well before the closing moments. How? They send the wrong messages early in the call and work uphill from there.

Struggling sellers send the message to the customer that they are there to serve them and nothing more. Along with the service message, master sellers also send the message to the customer that something will be expected from themthat they (the master seller) are there to help, but that they will also want the order once the help is given.

We should send the message from the very first call that we expect to get the business. Many sellers think ifthey send any kind of "I want the order" message too early, the customer will think they are pushy and will not buy from them. These concerns are unfounded. The buyer knows we are salespeople when they come to the phone or make the appointment. They expect us to ask for the busiNESS.

Here are four instances when we can pre-close with our customers:

At the end of a prospect call "Mr. Customer, I really appreciate your time. From what you've told me, I know we are a good match for each other. Do you think we can do some business together?"

Struggling sellers mistakenly think this will invite many no's. It will produce some no's, but more often the customer will respond in a positive way. If they do respond in a negative way with an objection-Hallelujah!we can overcome (discover) their prejudice against trying us and correct it on the first call and move forward in a positive sales relationship.

Buyers can't buy from everybody, so they have to test prospecting salespeople with objections. Salespeople who are ready and eager to overcome

these initial objections have a much better chance of becoming a supplier to the customer than the meek, timid seller whose only goal is not to offend!

After taking an inquirylRFQ

"John, thanks for a look at this one. I know we can cover it. Let me ask you a question: will you buy this from me?"

Many sellers think, "I can't ask that question, I haven't covered the spec yet." These sellers send the message: "I will give you great service and then let you decide." The seller who asks the "Will you buy this from me?" question before chasing the spec has sent a very powerful message: "I want the business!" Which message is better for the salesperson?

The point of asking the question is two-fold. One, the customer may say yes! Two, now the customer knows we aren't simply satisfied with covering specs-working for free. We want the order!

Right after losing an order

"Sarah, I've got us covered on that spec you gave me. You are going to love it. Let me ask you a question: will you buy this from me if I'm close?"

The fearful, timid seller thinks, "How can we ask for the order if we haven't given the price?" Let me flip this attitude around. How can the customer ask us to work for them without paying us?

Right before giving the price

"Darn it, John. I thought we had a great deal. When are you buying next? Can I have last look next time?" None of us likes to lose orders, but as pros we must keep our heads up and continue to sell. After a customer awards the order to someone else, they may feel a little guilty or beholden to us. That order is gone; let's start working on the next onel

Desire is difficult to say no to. Pre-closing sends the message that we want the business. Pre-closing makes us money and saves us time. Try it this week and see the difference!

Happy selling!

- James Olsen, Reality Sales Training, specialiles in sales training for the lumber industry. Reach him at j ame s @ re ality - sale s training.com or (503) 544-3572.

Greenhouse gases and retail

By Jay Tompt

\tr/IIEN the topic of green buildY Y ing comes up in our industry, it usually starts up the debate about certified lumber. SFI or FSC? Which is better? Is chain-of-custody certification worth the trouble?

The questions are valid, but the debate is essentially over and has become a distraction from understanding the real issue driving the green building movement. Carbon. It may bring as much change to the hardware and building materials channel as the "big boxes" did decades ago.

Let me explain.

The green building movement continues to gain solid support from state and local governments. Solid? San Francisco recently passed mandatory green building guidelines that are the most stringent in the nation, but it's not another example of West Coast eccentricity. What's driving the green building movement on the West Coast and the rest of the country isn't some "tree hugger" ideology, but a sciencebased approach to curbing greenhouse gas (GHG) emissions, which includes carbon dioxide.

Buildings and the building industry account for nearly half of all greenhouse gas emissions, which includes both embodied energy-the energy required to produce the building materials and move it to where its needed-as well as the energy required for operations, such as lighting, heating and cooling. (See www. architecture2}3).com for more information on this, as well as really nice graphics that illustrate the depth of the issue.)

Cities and states are focusing on green building related policies as one strategy for limiting GHG emissions, because that's the sweet spot.

A major component of every green building program concerns energy usage. Adding renewable energy, like solar or wind, can earn a building project lots of green points. So, too, can adding a host of energy saving fea-

this a sign of some big changes headed for this retail channel? Could be. New products in the pipeline will make it easy for do-it-yourselfers to install small-scale solar and wind systems for room additions, out buildings, etc.

There are lots more new energy saving products coming our way, too. Because these products deliver big margins, they are attracting the attention of retailers like Ikea. And because "alternative energy" is becoming mainstream, established "alternative energy" retailers such as Northern California's Real Goods are seeing tremendous growth opportunities. It's a sure bet that in the years ahead there will be new retailers focused on meeting the demand for carbon-free energy and challenging traditional home improvement/hardware dealers in that category.

tures. While federal rebates for solar may end soon, most pundits predict a future that includes more rebates for renewable and energy-saving products, coupled with ever stricter building codes. In fact. there is a movement afoot to set the green building standard at carbon neutrality, or zeroenergy, well before 2030.

This increasing focus on energy and carbon reduction will create business opportunities and threats. Ikea recently announced their intention to sell solar panels and other home energy products in the next five years. Is

What will all this mean for traditional home centers and building materials retailers? For those that are energy savvy, the new wave of carbon-busting products will add growth to the bottom line. Retailers today that have a solid lineup of EnergyStar products and, perhaps, a relationship with a solar installation outfit, have a head start and will be well positioned to take advantage.

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

Mendocino Gives Former Palco Fresh Start

It's been a busy summer for Humboldt Redwood Co., Scotia, Ca., the new company formed when Mendocino Redwood took over Pacific Lumber Co.

After linal reorganization papers were signed July 30, transition teams from Mendocino Redwood's headquarters in Ukiah, Ca., quickly assessed the condition of Pnlco's timberlands, took inventory at its mill in Scotia, and extended employment offers to about 300 of PRt-co's more than 350 former employees.

Many of these former employees also received personal phone calls from Richard Higgenbottom, who serves as c.e.o. of both Humboldt Redwood and the Mendocino Companies, which celebrated its lOth anniversary last month.

"I think it was the appropriate thing to do," said Higgenbottom of the calls he made, since the 18-month bankruptcy proceedings had disrupted so many lives.

By August 4, Pnlco's former sales office had reopened for business. Two days later, the sawmill in Scotia was up and running, log deliveries were accepted, and lumber shipments for existing orders became available.

In a letter to customers, Higgenbottom stated that two important goals for the new company were to implement Mendocino's forestry practices and position the Scotia sawmill to be successful for the long term.

"For the mill," he said, "we will change the philosophy from a cost-driven approach to a market-driven approach. For customers, we hope this will have the practical result of allowing us to reliably provide the product you want, when you want it, with excellent and predictable service at a fair price."

Sandy Dean, c.e.o. of Mendocino Redwood and a major player in the reorganization, said that success will be linked to the health of the new company's 210,000 acres of timberlands in Humboldt County.

"This is a forest that's been managed aggressively," he said. "But it's a forest that has tremendous habitat value and a tremendous amount of standing timber." The new company has already applied for Forest Stewardship Council certification of these lands.

Under Pnlco, an average of 150 to 160 million bd. ft. was cut from 2000

Homboldt Redw.'od COMPANY. LLC

to 2005. That figure dropped to 99 million bd. ft. in 2006, and fell to 77 million bd. ft. last year. Under the new management, annual harvesting will

be limited to 55 million bd. ft. per year for the next decade and a no-cut policy for old growth will be observed.

"We chose a harvest rate that's based on careful assessment of the timber inventory," Dean said.

Although he expects the harvest rate to increase after l0 years, it will always follow Mendocino's principles of sustainable forestry-which include cutting less than what's grown.

These principles, which have

(Please turn to page 42)

Remanufacturing and Wholesale Distribution High Quality North American Softwoods of

NCalifornia Stocking Dealer Sales and Distribution of Wavey Edge Siding

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The Strong Frame ordinary moment frame is the only factory-built moment frame for wood construction that features 1000/o field-bolted connections. Instead ofa welder and special inspector, all you need are standard wrenches for installation.

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The Strong Frame anchor-bolt assemblies are designed to eliminate the need for larger footings. And with templates that mount on the forms and an optional telescoping layout tool, we make it easy to get the anchor bolts in the right place.

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Each frame is shipped disassembled to the job, meaning more frames can fit on one truck and there are no awlo,vard pre-welded frames to handle on the job.

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David Smith has been promoted to glulam sales mgr. at Rosboro, Springfield, Or.

Matt Chavez is the new director of marketing for Reid & Wright, Inc., Broomfield, Co.

Pete Martini, president of American Laminators, Drain, Or., has retired after 32 years with the company. Dave Anderson will move up from v.p. to fill the position.

John Helela, ex-PeLco, has joined Redwood Empire, Cloverdale, Ca.

Lee Alford, senior v.p.-residential wood products, and Craig Neeser, senior v.p.-industrial wood products & international, are retiring Oct. I from Weyerhaeuser Co, Fedeal Way, Wa. Thomas Gideon, executive v.p.-forest products, will assume leadership of residential wood products. James Branson, senior v.p.-timberlands, will take over industrial & international.

Mark Kauffman, ex-Northern Tool & Equipment, has joined Orchard Supply Hardware, San Jose, Ca., as senior v.p. of merchandising.

Tammy Snook, ex-ProBuild, is now an account mgr. at Capital Lumber, Tangent, Ca. Micah Lloyd, exChicago Title, is a new account mgr. in Healdsburg, Ca.

Brendan Sullivan has been promoted to director of merchandising for PRO Group, Denver, Co.

Barry Homrighaus has been promoted to chief operating officer at JeldWen. Klamath Falls. Or.

Angela Cardas-Meredith is the new director of the Habitat for Humanity ReStore in Lebanon, Or.

Jay Mahabir is store mgr. of the new Lowe's Home Improvement Center in Madera, Ca. S. Thomas Moser, vice chairman, KPMG, has been appointed to Lowe's board of directors.

Marvin Ellison has been promoted to executive v.p. of Home Depot's U.S. stores, replacing Paul Raines, who is leaving for another firm.

Scott Milburn is now executive director of strategic communications at the American Forest & Paper Association.

Rich Lynch has been promoted to director of retail training at Ace Hardware Corp.'s Hq. in Oak Brook,Il.

Rick Tredwell has been promoted to West region sales mgr. for Bostik's Construction & Distribution Division.

Karel K. Czanderna, ex-Whirlpool, has joined Owens Corning as group president of building materials.

C.T. "Kip" Howlett Jr., ex-American Chemistry Council and GeorgiaPacific, is the new president of the Hardwood Plywood & Veneer Association.

During our almost 60 years in the redwood business, Big Creek has developed a reputation for being a reliable supplier of high quality lumber. We produce a wide range of grades and dimensions, custom cut timbers, pattern stock and fencing. Order full, mixed or partialtruckloads.

Big Crcek Lumber Co. hasa long history of practicing superior fiorcst stewardship - gtowing, seleqtively haruesting and milling high quality California ldwood.

For highly experienced and personalized service contact Frank "Lud" McCrary Janet McCrary Webb or Jim Busic*

Michael Rehwinkel, president-wood products, Georgia Pacific, is the new chairman of APA- The Engineered Wood Association. Jeffrey Wagner, executive v.p.-OSB , Louisiana-Pacific, is vice chairman.

Larry Selzer, president of the Conservation Fund, has joined the Sustainable Forestry Initiative's board of directors.

Matthias Zachert, chief financial officer, Lanxess, was named CFO of the Year by Chemical Week.

Frank ttl-ud" McCrary, Big Creek Lumber, Davenport, Ca., donated a massive, 100-year-old redwood timber to UC Santa Cruz to create a new, 24-ft.-long sign for the university's main entrance.

Thom Wright, All Coast Forest Products, Cloverdale, Ca., will attempt to play 54 holes of golf Sept. l5 to raise money for Redwood Gospel Mission's Campaign for Real Change, benefitting the homeless of Sonoma County.

Hooten N. Halloran is organizing a charity rodeo at Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

Galleher Buys Wholesaler

Irocsu division Galleher Corp., Santa Fe Springs, Ca., has acquired assets of distributor Floor Services Supply. Sacramento. Ca.

A 75-year-old company with $30 million in annual sales, Floor Services Supply wholesales hardwood and laminate flooring in Northern California and Northern Nevada.

Vicki Dryden, former v.p. of sales and marketing for Galleher, will head the Northern California operation.

"This acquisition supports our strategy of growth and expansion by enhancing our market position, operational efficiencies, and potential customer base," said Galleher president Jeff Hama.

lfi'8irn

doing everything we can

grab marketshare, but so is everybody else. It's just an extremely competitive market."

Two Coat Exterior Prime

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Superior Wood

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RESERVE products come in a wide range of sizes, lengths and finishes. Whether the project catts for S1S2E or 54S, we of fer [engths ranging from 16'to 20'. Pattern stock is atso avaitabte.

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Our Siskiyou Forest Products RESERVE line is specially manufactured and treated to create the highest quality product available. Using state-of-the-art application and curing equipment, our premium Western Red Cedar and Redwood stock is made to last for many generations. We are proud to offer a beautiful, durable product that is ready for installation and final painting the moment it reaches the craftsmen,

"We're

do to

- Bart Walker, chieffinancial officer, Lumber Products, Tualatin, Or.

Developing the next generation

By Amy Schuman and Jennifer Pendergast

ll ['ANY family businesses assume IVIthat the best way to prepare members of the next generation for work in the business is to move them through a series of different jobs over a period of time. Whether or not the next-generation family members have worked outside the business, they are often encouraged to gain wide exposure within the business before settling down in one position.

How does this usually work?

Depending on the size and complexity of the business, the next-generation individual (let's call this person the NG) is assigned to a different job every few months, possibly over as long a period as two to four years. Many families have come to believe that exposing the NG to a wide variety of people, functions and locations in a relatively short period of time is the very best way to prepare the NG for a career in the family business. This practice is similar to management development programs for high-potential managers in public companies,

Rotational System Advantages

The NG can learn about many different areas of lhe company in a relatively short period of time. At the same time, a wide variety of employees get to meet and interact with the NG.

Typically, careers of non{amily employees are left undisturbed; no one is displaced or held back to make a position for the NG.

The NGs don't have to stay in a iob they don't like for too long, but lhey are required to have some experience in every important parl of the company.

Moving around a firm lets NGs find areas where they can make the biggest contribution and increases the chance of finding a good fit for their careers.

designed to train future company leaders by exposing them to a variety of areas in the larger businesses.

A typical rotational system in a family business might look like this:

In a smaller company:

Month 1: Shadow dad/mom/uncle/ c.e.o. to get a sense of the business

Months 2-3: Shadow top salesperson, visit major customers, learn product lines

Months 4-5: Special projects in operations

Months 6-9: Move between areas of administration, such as HR, IT, etc.

Month l0: Job assignment as position becomes available, or special project

For a larger enterprise:

Months l-2: Orientation, introductions

Year 1: Sales

Year 2 Finance and administration

Year 3: Operations and international

Year 4: Assign to top management team

Although this approach has advantages, it has some drawbacks as well:

Disadvantages

Moving around loo much gives the NG only a superficial underslanding of the company. Employees may perceive the NG as shirking lhe hard work needed to gain a full understanding of the business.

The early years of a career are important opportunities to get fronlline experience, have real budget and P&L responsi bility, and learn how to manage people. Rolational systems often don't permit this.

The NG is getting a sheltered, unrealis. tic view of the workplace if they never have to endure unpleasant, tedious or boring jobs. The NG is never really accountable and misses the satisfaction of eaming a promotion by hard work and perseverance.

Being in continual leaming mode can become tedious and boring for the NG, especially if they never get the opportunity to gain and demonstrate deep expertise.

Although the advantages of rotational systems are obvious, the disadvantages often become apparent only over a longer period of time. The main disadvantages have to do with their artificiality: they offer an unrealistic breadth of experience in a relatively short period of time and may create unrealistically high expectations in the NG regarding a career and role in the family business. Rotational systems don't provide the NG with the depth of experience needed for future success in the business and may not create a positive impression in non-family employees regarding the level of the NG's commitment and persistence.

Many of the advantages are felt in the ownership realm as opposed to the business realm. The NG owner seeking to understand the business will benefit from a wider view, even if that view is shallow.

If you feel the rotational approach is best for your situation, carefully manage its downside:

. Do not move the NG too quickly. Seek assignments that provide the NG with in-depth understanding and real responsibility.

Identify opportunities for the NG to demonstrate expertise and to produce meaningful deliverables.

. Find positions where the NG learns management and leadership, two of most difficult skills to master.

How you develop the rotational program will depend upon several factors, including how much time you have to prepare the NG before current members retire. Ideally, you will have ample time to rotate NGs through several areas before they settle into an area where they can make a contribution and move up the ranks.

But the program may need to be abbreviated due to time constraints. When multiple NGs enter the business at the same time, with clear areas of interest and talent, it may be best to move them quickly into the areas where they have demonstrated interest and prowess. Differences in interests, such as sales versus operations, often are apparent early in a career.

Whatever approach you take, invest in career development for NGs.

- Family Business Consulting Group principal Amy Schuman can be contacted at schuman@ efamilybusiness.com or ( 847 ) 329-9880. Reach senior associate Jenniftr Pendergast, Ph.D., at pendergast@ efamilybusiness.com or (678) 296-2190.

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

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you deliver sheathing and wallboards with nail and pattern marks printed by Matthervs' ink-jet systeml the refurns yield more than value-added soft-rtions for your customer. Jhese innorntive systems introduce new and cleaner ways to mark building produc6, increase production efficiencies and deqease the overall cost of inks and supplies. Avoid the mess of atomizer sprayers and paint systems that are prone to clogging. consumable wastg and overpray. With our Drop-on-Demand ink-jet, you'll experience a flexible system that has the ability to integrate direcdy into your PLC or other board-driven production setup. for printing with confidence while providing environmenully fiiendlier solutiont turn to Matthevus Ma*ing PrcducB for your most dalhnging applications

BMHC Looks For Fast Asset Sales

Looking for quick infusions of cash to meet its credit obligations, BMC West parent Building Materials Holding Corp., San Francisco, Ca., is aggressively marketing "excess" vehicles and real estate holdings and closely evaluating all its business segments.

The company's sales fell 4l%o in the second quarter, leading to a $31.9 million loss and placing it in default of two financial covenants of its credit facility. BMHC obtained a temporary waiver Aug. 8, permitting it to borrow up to $60 million until September 30, while it negotiated for a permanent amendment to the facility.

During the summer, BMHC expected to raise about $7 million from the sale of excess vehicles. Over the next 24 months, it will also be placing up for sale about $40 million of excess real estate in Nevada, California, Florida and Arizona. Real estate sales should net about $l million later this year, $26 million in 2009, and $13 million in 2010.

BMHC will also close its regional construction services subsidiary SelectBuild Florida by the end of

November. Hammered by a massive drop-off in housing starts in the state, the division is BMHC's most troubled. But every operating unit is now under the microscope, according to chairman and c.e.o. Robert E. Mellor. "We'11 look inside of those to see where we believe that we have operations that are not EBITDA generating and to the extent that they are not doing that and they're not able to fix that in the very, very near term, they're candidates for consolidation, restructuring or shut down."

Riley Creek Buys JD Mill

JD Lumber is shuttering its Priest River. Id.. sawmill this month and selling the facility, land, equipment and timber contracts to Riley Creek Lumber.

JD will retain its forestry staff and clerk to facilitate their log suppliers' transition to Riley Creek.

"Due to the continuing poor market for finished lumber, we have decided to accept an offer from Riley Creek Lumber to purchase our sawmill," Jeff Weimer and Dave Slaughter said in a statement. "We

will cease operaton of the JD Lumber mill effective September 2008."

They said future operations of the facility, which employs over 200, will be evaluated in the spring.

Riley Creek recently merged with Bennett Forest Industries, with four mills in northern ldaho (see Aug., p. -lJ). Soon after, Riley Creek's Moyie Springs, Id., mill added an I l-man second shift, upping production by 25Vo.

"What the merger has done is given us a little more horsepower to be more aggressive in obtaining and building relationships with large customers," said Jesse Short, Moyie Springs plant manager.

Potlatch Spinning Off Pulp

Potlatch Corp.'s board of directors has unanimously approved its plan to pursue a tax-free spin-off of its pulpbased businesses into a publicly-traded company called Clearwater Paper Corp. The spin-off is subject to final board approval based on regulatory, market and other conditions.

A spin-off will create two standalone, publicly-traded entities: a timber REIT, with 1.7 million acres of forestland in Arkansas. Idaho.

Minnesota and Wisconsin, and a pulpbased manufacturing company that includes Potlatch' s Consumer Products facilities in Lewiston. Id.: Las Vegas, Nv., and Elwood, Il., and its Pulp & Paperboard facilities in Lewiston and Cypress Bend, Ar.

Michael J. Covey will remain chairman, president and c.e.o. of Potlatch. Gordon Jones will be president and c.e.o. of Clearwater. Potlatch will remain headquartered in Spokane, Wa., and Clearwater will be based at new offies in the Spokane area.

Blaze Consumes LSV Office

Lane Stanton Vance suffered an early morning fire Aug. 18 at its contractor division branch in San Marcos, Ca.

Firefighters contained the blaze to the office portion of the warehouse, saving all inventory and limiting damage to about $75,000.

The cause is under investieation.

Multi-family Building Green

More of the nation's apartments and condos are going green as multifamily builders and developers respond to growing consumer interest in sustainable building practices, according to a recent survey by the National Association of Home Builders.

"Apartments and condos are inherently green, because they offer more compact development to begin with," said Steve Patterson, chairman of NAHB's Multi-family Leadership Board and a developer from Orlando, Fl. "With today's heightened consumer interest in green, multi-family builders are embracing more green and recyclable products, and are more willing to invest in energy efficiency."

Whlle 14Vo of survey respondents said that buyers and renters are willing to pay more for green amenities, the median additional amount they are willing to pay is only about27o.

Roughly 897o of multi-family builders and developers said they are installing energy-efficient appliances and lighting in their communities. The survey also found:

.797o are using windows with lowE glass

. 647o are using recycled and recyclable products

5OVo are using significantly more insulation than required by the building code-a number that rises to 70Vo of West Coast respondents.

Lean ill$lnl[ullon

Why should I knour ahout it?

IOES lean apply to the wholesale I-,Tdistribution industry? Knowing my company's success in applying business and lean principles across other, diverse industries. my answer is a very clear "yes."

The distribution industry has always tried to be at the leading edge of technological innovation. However, technology, at best, will keep an industry at par with national averages with respect to productivity. To excel and exceed national averages, the application of technology must be supplemented with innovation in processes-that is, with the application of business and lean principles.

Becoming a lean distributor by reducing the internal operational costs is the only scenario in which a distributor can increase its profitability without requiring its customers to support higher prices. By reducing waste, a distributor's capacity to service its customers will greatly increase while reducing its operational costs. To be a low-cost provider of distributor services, the supplier has to improve its internal costs.

So why should you know about lean? Among the many reasons are:

1.. Becoming lean means becoming a more effective company-one that operates with minimal waste and few errors, adding value to the products and services it provides.

2. Becoming lean means continually improving the way you process orders and serve customers-from the

By Dr. Perry Daneshgari

time you seek an order, to order entry, and all the way through to the delivery of products and services.

3. A lean distributor is a profitable distributor. Becoming lean will improve your operational profitability by at least 2OVo to 3OVo.

Now that we have a few good reasons to become lean, the next question in your mind is probably going to be: "How do I become lean?" Lean is not a destination; it is a journey, and the steps through that journey include: Talk about the key challenges your company is facing in the marketplace. Ask yourself these general questions:

1. What is our company's mission?

2. What do our customers need?

3. Do we fully understand our customers'needs?

4. What are our needs?

5. What are our suppliers' needs?

6. How can we improve our supplier relationships to better serye our customers?

7. What obstacles do we face in achieving our mission and goals? Then ask these specific questions:

1. How do we add value?

2. What is value from the customer's perspective?

3. What are the transactions in our processes that the customer does not

know or care for?

4. How many transactions do we have to commit to before we satisfy customers' requests?

5. What is our first-time pass? Do we know our cost of processing orders?

6. What are the costs of errors in our system?

7. How do we lose customers?

8. How do we gain customers?

9. What is the cost of a lost customer?

10. What is the cost of carrying a customer?

11. What is our customer's point of entry into our system?

You can't just stop your operations to work on the answers to these questions, nor can you put everything on hold to become lean. Instead, you need to use Strategic Breakthrough Process Improvement (SBPI) in an ongoing system. The importance of SBPI is that in an ongoing operation such as distribution, the SBPI process can be done on a small scale first. The SBPI allows lean to be introduced in ongoing processes through its main building blocks of:

l.Identification: What is the issue?

2. Charucteization: Can its impact be measured? Do we have the measurement? Is it important?

3. Optimization: Solve the issue with the help of a cross-functional team.

4. Utilization: Run a test for application and verify the expected results and improvement, then institutionalize.

You can start the SBPI process by gathering your executive team for an initiative start-up. Once you've answered the questions above, identify the employees you would select for a cross-functional team to address the issues you've identified. Then bring that team together and further brainstorm some issues.

Once your team is in place, you can walk through the eight key steps of the SBPI process:

1. Prioritize your list of issues and then select the top issues to be addressed. Develop a plan for gathering data on those issues.

2. Select the issue you'll tackle first-the issue for which you'll develop a PDSA (Plan-Do-Study-Act cycle). Then plan your tests.

3. Brainstorm about how you would perform the tests, collect the data, and resolve any issues that may arise.

4. Discuss how you would analyze the data, what criteria you would use for accepting a change to an existing process, and how you would select a pilot.

5. Talk about how you would evaluate the pilot and how, if the pilot was

successful, you would expand it into larger pilots.

6. Discuss the "dashboard" you would use to track the pilot; these are tools and measurements. What information should you include in the dashboard? Also, decide who would be in your "quality circle"-the cross-functional team of employees charged with overseeing this particular process/system indefinitely.

7. Describe how you would test the proposed change across the organization. Identify any risks and develop a plan to manage those risks.

8. Figure out how you would incorporate the change in your company's regular operations. How would you communicate the change - internally and externally to customers and suppliers?

Becoming lean is not something you should take on alone. It's important to get outside help.

However, there are some things you can do to prepare for Your lean joumey. Remember that lean is a journey, and, like a good diet, must become a lifestyle change-you shouldn't go on and off it if you want to be successful.

- Dr. Perry Daneshgari is president and c.e.o. of MCA, Inc., and co-author of Lean Operations in Wholesale Distribution, published by the NAW Institute for Distribution Excellence, (202) 872-0885 ; rrww.naw.or gl leanops. Reach him at perry@mca.net.

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Push deck board down to rest on joist, lasten The Hidden [ink'" to joist

Alaska's OK Lumber Files Chapter 11

OK Lumber, Fairbanks, Ak., tiled for bankruptcy July 3 l, due to increased competition frorn big-box retailcrs and high operating eosts.

Accclrding to court filings, owner Richard Kruckenberg obtained a $3 million mortgage fron.r Dcnali State Bank about l2 years ago. Hc's paid off about two-thirds and owcs about $l million, said his attorncy. Albert Dovbish.

"There's no rcason why OK can't survive," said Dovbish. "There's a lot that can be done." including rcorga-

nizing old debt and rnoving to a smaller location.

Angie and Nornt Kluckenberg startcd OK Lumber in lr912. They retircd in 1996 and sold thc business to thcir son.

Stimson Selling Bonner Mill

Stimson Lumber. Portland. Or., has placed up for sale its shuttcred sawmill in Bonner, Mt.. ancl will go to auction if thcrc are no acceotable offers by thc cnd ol'september.

The pricc tag fbr the 170-acre conr-

plex is $16 million. The sawmill shut down in the latc spring. after operating continuously sincc the I 880s.

"l'm hopeful sorncone will buy it as a sawmill. but ntost likely it will bc bought fbr another usc," said v.p. JefT Wcbber.

Any unsold assets. including equipment. will be liquidated at a two-day auction Sept.30 and Oct. l. Not for sale arc Stirnson's rou-ehly 100.000 acres ol. Montana timberland.

Scparately. Stimson expccts a minimum ninc-month closure fbr its idled finger.jointing plant in Libby, Mt.

BlueLinx May Lose G-P Lines

Bluclinx Holdings. Atlanta. Ga.. is workinr: to pcrsuude its prinrlrr; rupplier and 1'orntcr parent, GeorgiaPacific. Atlanta. not to drop it as a distributor.

G-P recently notified Bluel-inx that it wished to opt out of a supply promise agreed to whcn it spun off its LBM distribution division in 2002i.

G-P products. inclucling lumber, cn-gineered wood. and structural pancls. currently account lbr one-fburth of BlueLinx's total salcs. Scveral of the G-P-branded products are Bluelinx cxcl usi ves.

Veneer Plant Hit By Fire

Valley Veneer, Grants Pass, Or., was danraged during an Aug. 26 tire that apparently started when a cigarette was discardcd near sawdust.

Bosed in Annopolis, MD, Fletcher Wood Solutions is the lorgest monufccturer of defect-free, oppeoronce srcde

rodioto'tIETCHER'

pine products in New Zeolcnd. Dis- MOULDINGS tributing our cleor boords, mouldings, LIFESPAN treoted wood. ond lumber to the North Americon morket throuqh our Droven ond comoletelv inteoroted Gj supply choin, Fletcher Wood Solutions F,J I ru mointcins direct occess,. .,* ;t ;;" I i r jfl

lorgest FSC certified pine plontotion forests in the world-

Afternoon winds quickly pushed the sawdust blaze into nearby greenery. sprcadin-e the fire up thc rnill's ,rrrtside uullrrnd into its attic.

Workers on their afternoon break noticed smctkc billowing from the attic and tried to douse it with fire extinguishers and a garden hose befbre firc crews amived.

Initial dama-ge estimates ran-tcd f rom $20.000 to S80.000.

Fresh Start For Former Pnlco

(Continued.fntnt yr,qe -) I ) earncd FSC certification and the respect clf environmentalists for Mendocino Redwood, were among the selling points the company used to win thc right to acquire Pnr.c'o. "We hope to duplicate the things wc do one county away," said Dcan. "The intent is to opcrate with a high standard of environmental stcwardship."

Maintaining these high standards is seconcl naturc lirr Humboldt's leaders, uho are mo\tl) Mcndocino vctcrans.

lurrreli

T1ETCHER. BOANDS

"We have high hopes that the past experience of these people will be highly relevant to the challenges we face," said c.e.o. Higgenbottom.

Mike Jani, who was president an( chief forester at Mendocino Red.l wood, now serves in these same roles at Humboldt Redwood. Jim Holmes, formerly president and chief operating officer of Soper-Wheeler, will take Jani's place as president of Mendocino Redwood.

Senior v.p. Mike Hottinger worked on a variety of projects at Mendocino Forest Products and is responsible for all non-forestry operations at Humboldt. Jim Pelkey, chief financial officer of the Mendocino Companies, has also assumed the same position at Humboldt.

Denny McEntire, long-time sales and marketing manager for now-idled Harwood Products. will serve as Mendocino's new manaser of sales and procurement.

Tom Schultz, who has provided operational leadership for Mendocino Redwood's lands for the past 10 years, is the new forest operations manager. Area manager Jon Woessner also had the same title at

Mendocino Redwood. Doug Mclsaac, who has managed Mendocino's Ukiah, Ca., sawmill for several years, is now mill operations manager of the Scotia sawmill.

As the new company moves for-

ward, Dean is confident of success. "All we can do is duplicate what has worked at Mendocino Redwood, do a good job in Humboldt County, and hopefully earn the support of folks who are concerned about the forest."

r

Call the experts:

/ ways to build rapport with your customers

By Dave Kahle

D) UILDING rapport with customers

Ilis like squirting oil into gears. Imagine some gears grinding together. When you squirt lubricating oil into the gears, you reduce the friction and make everything work smoother.

So it is when two people interact with each other. Rapport, like lubricating oil, reduces friction and makes the interaction work smoother. In sales, creating rapport is an essential step that enables the customer to feel comfortable and leads to a more effective sales interaction. The best salespeople create rapport with everyone.

The dictionary defines rapport as "an emotional bond or friendly relationship between people based on mutual liking, trust and a sense that they understand and share each other's

concerns." Here are seven ways to create that sense of understandins and mutual trust.

L. fay attention to your appearance

People will form an impression of you based on how you look, before they even say hello to you. Your appearance, then, should be designed to help you look confident and competent-based on your market. At a minimum, that means clothes clean and pressed, shoes shined, and hair cut.

Your attire should help you connect with the customer-not separate you from him. For example, if you are calling on production supervisors. you ought not to wear a suit and tie, as that will separate you from them, and generate a bit of discomfort in them.

The best rule I've seen is this: Dress like your customer, only a little better. On several occasions, I have worked with sales forces who sold to farmers. Blue jeans and flannel shirts are okay, as long as they are clean and pressed blue jeans, and a better quality flannel shirt.

But what if you call on several different types of customers in the same day? One salesperson wore grey slacks, a blue button-down collar shirt, and a navy blazer. When he called on managers and executives, he dressed it up by putting on a tie. And, when he called on people who weren't in the executive suite, he dressed it down by removing the blazer and the tie. 2.fry a bit of disarming honesty

In routine interchanges! say something that the customer is not expecting. When he says, "How are you?", instead of the perfunctory "Fine," try something like this: "Honestly, my day didn't get off to a good start. One of the kids was sick this morning, and I was a half-hour late getting out of the house. How are you?"

It's disarming because il r.rrs uncxpected. And, it's honest, reveals something about you. and describes a situation with which almost everyonc can relate. A good way to build rapport.

3. Hn-o.

If you are one of thosc pcople who can make most people laugh most of the time, then you are equipped with a powerful rapport-building asset. There is something about laughing together that breaks down barriers hetween people and removes lension.

If you are not one of those people so gifted, then it's better to stay away from this. Telling a joke that nobody gets, or having a glib comment being seen as sarcastic or caustic is NOT a good way to build rapport.

4. Ur" a sincere compliment

Everyone likes to be complimented. When you sincerely complement a customer (or his company), you communicate that you're interested in them, that you've noticed something they do that stands out, and that you aren't atiaid to say something complimentary. Those are all good things.

Not long ago, I entered a prospect's officc building for the first time. The lobby was quite dramatic, with a twostory atrium and a soaring piece of sculpture. When he came down to mcct me, I immediately told him that the lobby was impressive, and that I felt comfortable and a bit inspired because of it. We bricfly chatted about it and I then followed him to his office, having achieved some rapport.

5.lst a perceptive question

A perceptive question does everything that a compliment does and then some. When the compliment doesn't call for any response from the customer, a question does. If done correctly. it can initiate the conversation and help the customer feel like you are interested and care about him. In the previous situation, for example, I could have asked, "Was it designed to create that kind offeeling?"

6. Indicate a personal connection

Il you have something in common with the customer. mention it. Don't

beat it to death, just mention it. When the customer discovers that you both know the same person, vacationed in the same place. or belong to the same group, he realizes that you are alike in some ways. It's easier to do business with someone who is like you.

7 .t"ll a short personal story

It shouldn't be a major digression, but a short story about something personal is a great rapport builder. Something like: "Boy, I had a hard time -setting here on time. I must have run over somc glass or somcthing sharp,

because about halfway here, my right front tire went flat. Took me a while to change it. Glad I made it on time." It's short, personal and a bit transparent because it reveals something about you, as a human being. And, it's something cveryone can relate to.

Building rapport is a science with proven tactics you can usc to smooth out the way to more sales.

Duva Kahle, "The Grov'tlt Crnch," is a sules cortsultant, traincr untl author of si.x books and a.free monthly "Thinking About Sulcs" e.ine. Reoclt him at (8001 -1.1 I - 1 287 : v.'rtty.davekthle.com.

Old World Crafumanship In Teday's Designs

Tru-Dry Timbers

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

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

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

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

Tru.?rq

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When you use Western Red Cedor. your home becomes o work of orl. An elegont ond duroble one, with irresistible curb oppeol For builders who volue smort solutions, nothing compores to the beouty, performonce ond odded volue of Western Red Cedor. For more informoiion, visit our websiie ot www,selkirkcedcr.com or coll 250-837-2222

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Weyerhaeuser Slashing 1,500 Jobs

Weyerhaeuser Co. will trim its payroll by 1,500 workers, with two-thirds of the cuts taking place at corporate headquarters in Federal Way, Wa.

Weyco c.e.o. Dan Fulton said the cuts, part of an ongoing refocus on wood products and timberlands, could save the business $375 million a year.

Spokesman Bruce Amundson said that many of the 1,000 positions being eliminated at headquarters, which currently employs 2,500, supported packaging and paper divisions, which were recently sold to International Paper.

LP lssues Composite Deck Advisory

LP Building Products, Nashville, Tn., issued a product advisory for composite decking and railing manufactured at its plant in Meridian, Id., after January 1,2005, and before October 2007-when the plant was sold to Fiber Composites, New London, N.C.

"We want consumers to be aware of the potential risk of injury, and to contact us," said Rick Olszewski, LP's executive v.p.-specialty products and sales. "Though only a small portion of decking sold has been affected by these issues, we urge people who bought or installed these composite decking products after January I, 2005, to contact us for an inspection."

According to LP, the company has received "claims of premature deterioration of a small portion of these decking products due to variation in the manufacturing process." Affected products include deck board and railings sold under the names of WeatherBest-sold at LBM dealers nationwide-plus ABTCo and Veranda, which were sold at Home Depot stores in the western U.S. Veranda is produced by several manufacturers, but only product produced by LP is affected by this advisory.

WeatherBest products manufactured after LP sold the plant to Fiber Composites are not affected by LP's advisory. According to Fiber Composites, important product formulation changes that have been "proven and promoted" for many years under the company's Fiberon brand of decking and railing were made once the plant was acquired.

Boards produced by Fiber Composites have a clearly defined kerf that LP boards don't have. More information and a product-advisory flyer for dealers are available online at www.deckingnotice.com. If contacted, LP will arrange deck inspections and replace affected portions.

PBEMATURE DETERIORATION may show as flaking, cracking, or other obvious signs of deterioration.

Wholesaler Entering Spokane

Lumber Yard Supply, Great Falls, Mt., will open a new distribution center early next year in Spokane, Wa., and has established an Employee Stock Ownership Plan.

The new branch expands its territory to include eastern Washington, northern Idaho, and northeast Oregon.

Jason Bake. who has worked with LYS for nine years, will serve as branch manager for the new location, which expects to begin operations January 5,2009.

As at its two Montana yards, LYSSpokane will off'er builders engineered wood products from ilevel by Weyerhaeuser. Weyerhaeuser had previously served by Spokane market by leasing reload space.

Owen Robinson, majority stockholder of LYS and the fourth generation to run the business his family founded 122 years ago, introduced an ESOP to reward long-time, loyal employees, after initially thinking "in my case that it was too late to make an ESOP work for my retirement planning."

"I thought if the business sold to a different company, that new company would need our employees," he said.

"I realized, however, that wasn't necessarily the case and that our employees would not be protected."

Millwork Group Opens Up Wood Moulding & Millwork

Producers Association is dropping the "Wood" from its name and inviting PVC and composite millwork manufacturers to join its ranks.

"Two years ago, the membership elected to invite the PVC millwork manufacturers to our meetings," said executive v.p. Kellie Schroeder. "Our membership realized the moulding and millwork substrate may be different, but the same marketing, freight, human resource, and distribution challenges face wood, MDF and PVC producers."

New officers have also been installed at the Moulding & Millwork Producers Association (MMPA)president John Morrison, Sunset Moulding Co., Live Oak, Ca.; v.p. Ted Smith, Smith Millwork, Lexington, N.C.; treasurer Craig Young, TLC Mouldings, Willacooche, Ga., and immediate past president Tom Williams, Yuba River Moulding & Millwork, Yuba City, Ca. Morrison will serve until March 20 10.

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

INTERNATIONAL SALES: Nestor Pimentel, Oscar Portillo.

producls

Cellular PVC Deck

Truemarc cellular PVC deckins reportedly is stain and mold resistanl easy to clean, and has a Class A fire rating.

Sheathing Goes Green

mounted on mesh-backed sheets for easier installation.

- Please call (541) 552-0855 or visit www.hakatai.com

Tidy Underlayment

Sakrete's B-1 trowel-srade leveler and underlayment prepires interior areas for floorine installations.

The product is available in seven colors, with natural shading and graining for the look of real wood. Color-matched screws can be used without pre-drilling.

- Please call (888) 380-9961 or v is i t www.true ma rc.com

Porch Goes Modular

A new modular porch system from Vixen Hill uses a three-piece header beam that reportedly makes installation fast and easy.

Screens and tempered storm glass can be switched from the inside. A variety of architectural inserts can customize the porch's exterior.

- Please call (800) 423-2766 or v is it www .v ixe nhill.c om

Temple-Inland's GreenGlass gypsum sheathing has a high percentage of recycled content and is faced with fiberglass for protection against mold and moisture.

The product can be installed under a wide range of exterior veneers, including brick, stone, metal, wood and vinyl. Both ll2" and 5/8" thicknesses are available, in a 4' width and lengths of 8', 9', 10' and 12'.

- Please call (800) 231-6060 or v i s it www .temple inland.c om

MosaicTiles

Hakatai's new line of mosaic tiles blends glass, metal and stone.

Polymer-modified and cementbased, the fast-setting product is available rn 25-'lb. bags and can be used over a wide variety of surfaces.

- Please call (800) 738-1621 or visit www.sakrete.com

Hot, Bright & Breezy

Ventilation fans that also provide heat and light are new from BroanNuTone.

The devices feature a 1,500 watt heater and a fan that operates at just 2.0 sones for 100 CFM. Offered in four models, they can be mounted anywhere in the bathroom where heat, light and ventilation are needed.

- Please call (800) 558-l7II or visit www.broan.com

Horizon glass-blend tiles combine glossy and matte finishes for a modern look. Each ll8"x7l8" tile is

Composite Sidinq

Alside's Revolution sidii-g blends wood ingredients with structural polymers for a natural look and low maintenance. The product's rigid wood and polymer core construction reportedly makes it impact resistant, while a top-layer polymer finish resists harsh weather and maintains true color.

Flippant Knife

C.H. Hanson's Flip Knife was designed for roofing and flooring professionals who need special blades for each application.

The blades can be independently retracted, but both blades cannot be extended at the same time. Blade changes are faster and easier with a one-touch system that eliminates the need to ever open the knife.

- Please visit www.chanson.com

Decorative Door Inserts

Plastpro has added wrought iron inserts to its rustic door collection.

The decorative ironwork designs are olaced between texiured glass that maximizes privacy: bubble glass for the Priscilla design, and waterfall glass for the Camellia design.

- Call (800) 779056 I or visit www plastproinc.com

A Stacklock vertical joining system allows panels to float, to hide wall irregularities.

The fasteners also keep the siding securely in place, to withstand even Category 5 force hunicanes.

- Please call (800) 922-6009 or visit www.revolutionsiding.com

Wholesale Lumber

I 79 W V/oshington Ave Escondrdo, Co 92025

7 60-7 4l -588.l . I ox 160 141 9437 www.clredwood. com

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Six Ways to Increase Profits

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Tools For Women

GreatNeck Tools has desisned a lightweight tool kit for women.Packaged in a 2O-pocket, zip-up bag, each tool is engineered to be lightweight, but not light duty. With ergonomic design and comfort-grip handles, each tool fits comfortably in a woman's hand to make household orojects easier and more enjoyable.

- Please call (800) 457-0600 or vis it www.greatneckbrands.com or

Custom Cabinet Doors

Two new Armstrong Cabinet door styles influenced by Shaker design allow sreater customi zation.

Both Arborcrest. which uses solid cherry, and Town & Country, made of solid maple, come in a full range of finishes and glazes.

- Please call (800) 527-5903 or visit www.armstrong.com

Loves To Eat Oil

Oil Eater water-based desreaser reportedly eliminates the n6ed for multiple cleaning solutions.

The low-VOC cleaner is biodesradable, non-corrosive, non-toxicJand non-flammable. It cuts through oil, grease, grime and dirt, but rinses off easily and leaves no residue.

- Please contact (800) 528-0334 or www.oileater.com

for the right iob

A CCORDfNG to a recent study by ll,mi llwork manufacturer Jeld-Wen, 67Vo of homeowners said that they need to replace their existing windows. When it comes to windows, their choices appear endless-and it's often up to the dealer's sales personnel to steer homeowners to the products best suited to their project.

Because windows can make a significant impact on the overall style, comfort and efficiency of your customers' homes, Jeld-Wen suggests dealers provide consultation on:

1. Material type

The most common materials used for windows are vinyl, wood, cladwood and aluminum. For wood, nearly 9OVo of the market is pine, which can be stained to look like many species. Other species include fir, alder and mahogany.

To choose the material that will work best, consider the architectural style of the home along with energy efficiency needs, budget and maintenance requirements.

In general, custom wood windows offer the most design flexibility. Primed wood can be painted in any shade and cladding comes in many color choices. However, increasingly versatile vinyl can appear quite similar to many popular wood moulding styles and can blend with classic architectural styles. Aluminum is typically selected for contemporary homes in warmer regions.

2. Ett..gy efficiency

Window energy efficiency is achieved by a combination of factors. Wood and vinyl reduce heat transfer

and help insulate. Look for Low-E glass, a special glass coating designed to reflect infared light, keeping heat inside in the winter and outside in the summer. Low-E also reflects UV light to protect interior furnishings. Dual glass panes insulate much better than single panes.

Look for the Energy Star label, which means the window will meet the efficiency requirements for your particular region.

3. styt"

Casement, awning, single-hung, double-hung, and slider windows are available in many shapes and sizes, including radius and geometric, and combination units.

4. Budget

In general, wood is more expensive than vinyl or aluminum. Many manufacturers also offer different pricing scales within their window linesfrom custom and premium. to more modest options.

When it comes to budget, it's important to factor in long-term value beyond the initial purchase price. Energy efficiency and a longer warranty can all help save maintenance and replacement costs over time. Resale value is also a key consideration-beautiful, more efficient windows are a big selling feature.

5. Muint"nance requirements

Traditionally, wood has required more maintenance than vinyl or aluminum. In fact, vinyl is virtually maintenance free. However, there are alternatives for those who want real wood with less maintenance. includins

treating the wood or adding cladding.

6. Replacement solutions

Vinyl is today's dominant choice for updating old wood and aluminum windows, representing 65Vo of the replacement market. Experienced doit-yourselfers who replace existing windows with sash replacement kits or pocket windows that drop into existing window frames can save as much as 60Vo on material, time and labor costs compared to traditional replacements.

7. Guog""phic requirements

Wet, humid, hot, severely stormy, salty air-different climates have different window needs when it comes to material and glass choices. Location of the windows on the home may also be a consideration, such as in controlling sun exposure, privacy, security, outside noise, home safety, moisture and termites.

8. optiotrt

Different options can add maximum functionality and style-an important purchasing consideration. Higher-end windows may include integrated roll-up screens. premium wood species, designer hardware, and blinds installed between the glass and rollaway screens. Stress to consumers that ordering these options as part of a new window package will help avoid potentially costly add-ons later.

9. n"hunility

Warranties are important. Proper installation and following the manufacturer's maintenance requirements are a must to maintain warranties and keep windows looking and performing beautifullv for vears to come.

Green Windows & Doors

Green Initiatives, a free brochure detailing environmentally friendly windows and doors, is free from Kolbe, (800) 955-8177; www.kolbekolbe.com.

Excellence, 1325 G. St. NW, Ste. 1000, Washington, D.C.2OO5, (202) 872-0885 ; www.naw.org.

The Green Choice

Choosing Green: The Home Buyer's Guide to Good Green Homes, a 224-page trade paperback by green building consultant and author Jerry Yudelson, is 519.95 from Yudelson Associates, (520) 207 -91 59 ; www.sreenbuildconsult.com.

Designing Doors

Lift Goes Through 1r, a full-color catalog showcasing interior and exterior door designs, is free from Simpson Door, (800) 146-1766; www.simpsondoor.com.

Lean, Not Mean Lean Operations in Wholesale Distribution is a new guidebook from the Institute of Distribution

What makes the R4 UBER0RADE?

A CEE thread that works

The CEt thread enlarges the screw hole for the unthreaded portion of the screw, reducing friction, increasing drawing strength and all but eliminating splitting.

W-Cut*

0ur patented V'/-Cut thread design with its razor sharp teeth slashes cleanly through fibrous materials ef{ectively reducing the amount of toroue needed to drive the screw.

Patented cutting pockets

Our six, self-contained cutting pockets eliminate pre-drilling and the need for countersink bits.

Climatek* coating

Our exclusive Climatek coating boasts a hefty dose of zinc and polymer. lts gold-plated appearance inhibits conosion and blends nicely with all species of wood.

Poseibly the best scrEu ever. tt{e looked at our multipurpose screws from every angle imaginable and tweaked everything we saw The result is the most technologically advanced screw available. The R4 is so exceptionally superior, we had to create a new category of fasteners just to describe iL 0lcgGrade. Are you Shg0rade?

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lfant aYES decision fiom anyone? Tilgger it!

VOU can have anything you want, yes, anythingl All I you have to do is to persuade someone to decide to do what you want. By applying new scientific breakthroughs, it's now quick and easy to get "Yes!" decisions and actions.

Before persuading others to say '6yes," let's take a quick look at our own decision process. Only when we understand how the brain makes decisions can we successfully influence others' decisions.

Let's face it, life is a challenge. From the minute our eyes pop open in the morning until they close exhausted at night, we deal with an avalanche of decisions. Get out of bed now or snooze? What to wear? What for breakfast? Which route to work? Stop for gas now or on the way home? Listen to the news or a CD? Which CD?

At work, it's the same. Get that report out first or answer the emails and voicemail? Take a call or let voicemail pick up? What are the boss's priorities? What are yours? Whose do you execute first?

All day long, requests and decisions drive activities. The need to decide is incessant. Dealing with so many decisions sounds difficult. It could be. If we had to use logic reason and cognitive thinking, if we had to rationally evaluate and think through each decision, we'd be trapped, locked in

By Russell Granger

place, unable to move as we analyzed, evaluated, contemplated, measured and critiqued options. We'd wind up dazed and immobile.

Fortunately, nature has provided a simple, highly effective solution to enable us to easily get through each decision-making opportunity. That solution is our "internal navigation system," which resides in our brain's emotional center and is activated by our personal databank of emotion-based internal triggers.

A trigger is an emotion-based gut-feeling shortcut that helps us avoid the pain of laborious cognitive mental evaluation. We are pre-programmed to comply with other's requests when the request activates the appropriate triggers.

The secret for persuasion is to leam which triggers can be activated for each situation. The irony of this need for quick, easy, emotion-based triggers is that the more sophisticated and complex our lives get, the more data we have, the more we need and rely on simple ways to help us make decisions. The smart manager, leader and sales rep understand this need and prepare their requests accordingly.

The exciting new science of live brain imaging documents that one emotion-based brain element, the amygdala, receives the most requests for decisions. The amygdala has

two choices. It can make an immediate emotion-based decision, tapping into the life-long database we build. Or, if no prior emotion is triggered, it can send the request to the prefrontal cortex for lengthy, rational, time-consuming cognitive evaluation. Reason and logic do not persuade. They might back up an emotional decision, but they do not heavily influence the decision.

To get what you want through others you must activate their emotion-based triggers.

One of the seven primary emotional triggers is the Authority Trigger. When we perceive someone is an authority, we usually act on their requests. What do you do when your doctor, the "authority," gives you a prescription? Do you search the Internet and research the chemical compounds? Do you check the FDA website to evaluate the documentation for safety and efficacy? No, you get the prescription filled. The doctor's authority triggered you to make a quick automatic decision.

When your accountant, the financial "authority," directs you to "file this way," do you examine the 16,000-page tax code for logic and reason, or do you follow his advice? Again, the trigger motivates an automatic decision.

How do you persuade with the authority emotional trigger? Be the authority! Know your stuff. Do your homework. We give unthinking automatic compliance to those

who have done the hard digging for us. Show the other person you are fully informed about your subject and that you can be trusted to give expert information. Create the right impression and the other person's amygdala will perceive less risk and feel more assurance and trust. You'll set the decision you want.

Other primary triggers are:

. The Friendship Trigger, which activates trust and agreement through bonding;

. The Consistency Trigger, which motivates consistency with past actions;

The Reciprocity Trigger-when you give, you get; The Contrast Trigger, which structures contrasts to make one approach better than another;

The Reason Why Trigger, which uses emotional reasons to make decisions and actions, and

The Hope Trigger, which instills positive expectations that persuade agreement.

Activate a combination of these triggers and you will get anything you want.

- Russ Granger is the founder of ProEd, an international training consultancy specializing in management, sales and personal productivity courses, and author ofTheT Triggers to Yes. He can be reached via www.seventriggers.com.

B.C.'S forests can lead fight against clim*le change

Interfor, Maple Ridge, B.C.

1f\UR forest sector is facing chal\-flenges never before seen. The U.S. housing market collapse, export losses due to the rise in the Canadian dollar, and the catastrophic consequences brought on by the mountain pine beetle have had widespread impact throughout our province.

Surprisingly, as bad as things are, B.C.'s forest industry has before it one of the greatest opportunities in more than a generation, an opportunity that will benefit our entire province. That opportunity lies in the key role that wood can play as a solution to tackling climate change.

Increasingly around the world, people want to learn how to put less

pressure on the planet. They want to reduce waste and choose products that are gentle on the environment. Sometimes this means using less but more often it means choosing products that have a lighter carbon footprint and come from responsible and sustainable sources.

That's why the B.C. forest industry, Premier Gordon Campbell, and Forests Minister Pat Bell came together recently to launch an unprecedented initiative. It aims to ensure that British Columbians and consumers around the world know that when they purchase B.C. wood products, they're reducing their carbon footprint and helping to tackle

climate change.

How do B.C. wood products make a difference? First, trees help to counteract the effects of harmful greenhouse gases. As they grow, trees absorb carbon from the atmosphere into their leaves, woody stems and roots. In the process, they release oxygen back to the atmosphere.

What few people know is that the wood and paper products we make from trees continue to store this carbon for the lifetime of the product, and many times longer when those products are recycled. In fact, wood products are 50Vo carbon by rveight. Moreover, the amount of carbon stored in a typical wood-framed house

is equal to the cumulative emissions (30 tons of carbon) from a car over five years.

Second, wood products are produced using the energy of the sun (in a factory called the forest). That process requires just a fraction of the carbon dioxide emissions of products like concrete, steel and plastic, which consume a lot of fossil fuel as they're manufactured. So if we substitute wood for these products, we can achieve further CO2 reductions, since producing less of them requires less fossil fuels.

Third, wood waste materials and logging "leftovers" can be used to create bio-energy. This carbon-neutral energy source can help us replace fossil fuels throughout the province and further reduce our carbon footprint. That's why B.C.'s forest industry is already the largest producer of green energy after BC Hydro. And given the extensive volumes of dead wood available-including the pine beetle-killed stands-the potential to increase this green bioenergy production is substantial.

So, in a world full of choices, why should customers buy their wood products from British Columbia? Because, unlike a number of our international competitors:

Our forests are harvested legally, regenerated promptly, and managed sustainably.

. Our industry makes use of fully 977o of the logs during manufacturing and promotes re-use through recycling.

Our industry welcomes independent scrutiny of how our forests are managed.

Our industry is a leader in using wood-waste and converting it into bio-energy.

Of course, it all starts with B.C.'s sustainable approach to forest management and keeping our forests healthy and growing. B.C.'s forests represent an important carbon reservoir, but they don't absorb carbon dioxide at the same rate over time. With effective, long-term management of our forests, we can increase the amount of carbon stored.

A tree absorbs the most CO2 when it's young and growing. As it gets older, its ability to absorb carbon gradually declines. And when it starts to decay and dies, it

begins to release its stored carbon back into the atmosphere.

As beetle-killed forests decompose, for example, the carbon they release contributes to global warming. They're also more susceptible to lightning strikes and fire-and that means a rapid release of CO2.

We can prevent this carbon release and, at the same time, increase the size of BC's carbon reservoir by:

Managing our forests to keep them healthy and growing.

. Harvesting at the right time and manufacturing products that continue to store the carbon.

Switching from using fossil fuels to wood waste bioenergy.

. Using wood products in place of higher-impact products like steel and concrete.

As the world increasingly understands the role of forests and wood products in helping to tackle climate change, and B.C.'s value in this regard, our province and industry are well-positioned to be the global "supplier of choice."

And as we realize this potential, we will revitalize B.C.'s forest industry and provide new hope and economic stability to families and communities throughout our province.

- Ric Slaco is chair of the B.C. Foresty Climate Change Working Group and vice-president and chiefforester of Interfor, Maple Ridge, B.C. This article originally appeared in the Vancouver Sun.

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PURCHASING AGENT - Wooo Pnooucts:

A Southern California-based, premier multilocation distributor is expanding and needs an experienced wood products buyer. Must have sheet goods and distribution background. If you are a team playcr and enjoy working in a busy, positive work environment, we want you. Great benefits. Send resume and salarv historv to woodbuver@ smail.com.

LUMBER TRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation.6OVa split for trader. Call John at Lakeside Lumber ^t (623) 566-7100 or email lakesidelumber@cox.net.

AUSTIN HARDWOODS: Nevada's leading manufacturer and wholesaler of hardwood lumber, mouldings and millwork, is seeking hardworking, aggressive outside sales representatives. We offer an unequailed level of support and earning potential. A proven track record and personal integrity a must. You will be working with an outstanding sales team. For confidential consideration, send resume to dharrison@austinfirst.com or fax 702-260-l 133. Health/Dental & 401/k plans available.

LUMBER TRADERS: San Fernando Valleybased wholesale distributor Neiman Reed Lumber Co. is looking to expand its staff of traders. Experience preferred, but we have an opening for a sales management trainee position as well. We cater to industrial manufacturing and retail yard accounts. Our vast inventory includes pine commons, dry dimension, pine selects, DF uppers, panels, and hardwoods. Compensation package is excellent with open territories. If you're interested in joining our organization with over 600 employees, including affiliates, please contact Ed Langley, (818) 781-3466 Ext.3413 or by email to elangley@ neimanreed.com. Visit us online at www. neimanreed.com to find out more about our competitive advantages.

WELL ESTABLISHED Southern California wholesale distribution company is looking for a sales management trainee. Candidate must have a minimum of 5 years experience in wholesale distribution of lumber and panel products. Solid communication skills and product knowledge are a must. Salary is commensurate with experience. We also offer medical and 40lik retirement packages. If you are a salesperson who wants to make the move up to management, or are currently in management and want to make a change, contact us at Box 708, c/o The Merchant, 4500 Campus Dr., #480, Newport Beach, Ca. 9266O:' dkoenig@building-products.com.

copy, $9 per line. Border, $9. Private box, $15. Send ad copy to 4500 Campus Dr., Ste.480, Newport Beach, Ca.92660, Fax 949-852-0231, dkoenig@building-products.com, or call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: l8th of previous month.

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

SALES MANAGER

Shamrock Building Materials is seriously looking for the right individual to head up the sales staff at our Sacramento distribution and reman facility. If you know the Califomia and Nevada markets, and are willing to lead by example, this could be a financially rewarding position. We offer health and retirement benefits, and are anxious to make this venture successful. If this sounds interesting, give me a call or send your resume. Dave Gambee, president, (888) 7426763; Shamrock Materials, P.O. Box 80128, Portland. Or. 97280.

INDEPENDENT wholesale/distributor seeks oppo(unity to represent a broad range of lumber and building products. Extensive industry contacts. Proven successful track record. Contact LDLeese@aol.com. attention Bob.

. Gunderson resaw bandsaw model 9937 - 56", with 75-np motor and accessories. $8,000. Turner 42" twin band resaw two 25-Hp motors with accessories. $9,000.

Grading Chain - l6'wide by 20' long, with 6 chains. plus l0 chain in-feed off resaw. $3.500.

. 8' Cyclone with blower, 35-sp motor. American model U 60-35, includes all ducting. $3,000.

Grizzley horizontal resaw. $i3,000. Contact: Fence Specialties,6837 Power Inn Rd., Sacramento, Ca.95828; Phone (916) 383-3981; j.valenzuela@fencespecialties.us. FOR SALE: 2006 SeaRay Sundancer Weekender. Single prop.45 hours Excellent condition. $79,995. Newport Ca. Call Dennis. (95 I )

udrres

Robin Pickering Arkley Sr., 83, founder of now-defunct Arkley Lumber Co. (Blue Lake Forest Products), Arcata, Ca., died of natural causes Aug. 25 in Arcata.

Born in Vancouver, B.C., he was sent to Northern California by his father in 1949 to locate a suitable site for a sawmill. He purchased 20 acres in Arcata and opened Arkley Lumber. In 1968, he sold the business, which later owners renamed Blue Lake Forest Products.

In his retirement, Mr. Arkley became a popular political commentator who famously pledged $5,000 to launch a campaign to recall the local district attorney, who had filed suit against Pacific Lumber Co.

Robert Orville "Bob" West, 81, former president and sales manager of Placerville Lumber, Placerville, Ca., died Aug. I of congestive heart failure.

Mr. West's family founded and operated Placerville Lumber for

almost 50 years. He started working for the company at age 12 and worked his way up to president before the company was sold in 1984.

Harlan T. Cory, 87, former manager of Prospect Lumber Co., Great Falls, Mt., died Aug.2l in Great Falls after an extended illness.

After earning a Purple Heart serving with the Army in New Guinea during World War II, he returned to the U.S. in 1945 and worked for W.G.

Hayward Wins Green Award

Hayward Lumber, Monterey, Ca., has won the first Green PublicPrivate Partnership Award from the Monterey County Business Council.

About 15 years ago, when Hayward started getting calls from architects seeking advice on sustainable building materials, the company hired staff to research and develop a green program and to compile a list of sustainable products that would be available on a special-order basis.

"We didn't have them in the store because so few people wanted them," says marketing director

Woodward Co., Charteris Hardware, and Prospect Lumber Co. He opened Cory's Paint Store, Great Falls, in I 96 I , operating it for 43 years.

Charles Joseph "Joet' Blower, 94, longtime lumber inspector, died Aug. 8 in South Beach, Or.

In the 1940s. he worked as a lumber inspector at C.D. Johnson Lumber, Toledo, Or. He continued to work at the mill after it was sold to GeorgiaPacific in 1953, until retiring in 1971.

Suzanne Moore. "Nobody even knew what a green building was or what green products were."

Today, Hayward is recognized as an industry leader in the area of green products, a fact that makes the fourth-generation family business proud. The company recently completed the third printing of its EnviroSmart brochure and the second printing of its EnviroSmart products guide.

Moore said that the goal is to increase awareness of environmental concerns and green building. "It's a way of life; it's not something that we just started," she said.

Sournrnn Cmtonnln

Hampton Distribution,.,..,.,..,..,.......................(949) 752-591 0

Kelleher Corp. (Ontario)....,...........................(909) 635-1 560

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

Kelly-Wright Hardw00ds.,..,........,..................(714) 632'9930

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

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

Pacific Wood Preserving...............................(7 1 41 701'9742

Gemini Forest Products.,,................ ...(562) 594-8948

Huff Lumber Co.................(800) 347-HUFF (562) 921"1331 Jones Wholesale 1umber..,..,.,......................(323) 567-1301 Rio Tinto Minerals ..,..(661) 287-5400

Stepstone, Inc. .............................,,...,,..........(800) 572-9029

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

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

Weyerhaeuser Building Materia|s.........,.,......(877) 235-6873 ORANGE COUNTY & INLAND EMPIRE

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

Anfinson Lumber Sa|es.........................,.....,.(951 ) 681 -4707

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

Bear Forest Products..........(877) 369-2327 (951) 7 27 -17 67

BMD (Riverside)..... .,....(951) 341'0708

Boise (0.C.)............ ......(714) 255-1949

Boise (Riverside)................(800) 648'9116 (909) 343'3000

Building-Pr0ducts.com......................,...,.......(949) 852-1990

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

C&E Lumber Co. ......(909) 624-2709

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

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

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

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

Redwood Empire... .......(909) 296'961 1

Reel Lumber (Anaheim)..,...(800) 675-7335 (714) 632-1988

Reel Lumber Service (Biverside)..................(951) 781-0564

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

Rel-iable Wholesale Lumber, Inc..............,.....(800) 649-8859

Simpson Strong-Tie Co.,.,..(800) 999-5099 (714) 871'8373

Stone Castle TradinS.....................................(909) 466-6300

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

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

Tristar Transload .......(909) 823-3000

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

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

SAN DIEGO ABEA

Anfinson Lumber Sa|es.,..,............................(619) 460-5017

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

BMD (Visalia)........ .......(559) 625'30s0

Dixieline Lumber Co.,....,..,.(800) 823-2533 (951 ) 786-91 77

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

Sournwrsr

ARCATA / EUREKA / FORTUNA

8MD............................ California Redwood Co

BAKERSFIELD

.....,..,..,,....,,..,... (707) 444-9666 ,....,..,...,................(707) 268-3000

Pacific Wood Preserving ol Bakersfield ........(661 ) 833-0429

CLOVERDALE

All-Coast Forest Products..,..........................(707) 594-4281

Redwood Empire..... .....(707],894-4241

FRESNO

Siena-Pacific Industries ................................(530) 378-8000

siskiyou Forest Products ...(800) 374-0210 (530) 938-2771

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

SACRAMENTO / STOCKTON AREA

Arch Wood Protection ...........,.......................(530) 533-7814

BMD...................... .......(800) 356-3001

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

California Lumber Inspection Service............(209) 334'6956

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

Capitol Plywood..... .......(916) 922-8861

Hoimes Llrmber Co., Fred C. (Marysville).....(530) 743-3269

Kelleher Corp. (Roseville) .....,.......................(916) 788-0900

iLevel by Weyerhaeuser..,

DMK-Pacific................... ,..,.,......................(559]' 225-4727 .,. ..,.,.,..(800\292-0704 ............,....,,..,.,.,..(559) 994-1393

Lausmann lumber.......,..,.............................(800) 626-1233

Lumber Assn. ot Californra & Nevada...........(916) 369-7501

[,|&M Builders Supp|y....................................(209) 835-4172

OrePac Building Products,.....,.,....................(91 6)

guide

Plcrnc Jlonrtw:sr WASHINGTON

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

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

Louisiana-Pacific Corp. ..............,........,.,.,.....(503) 221 -0800

Lumber Products..... ......{800) 926-7103

North Paci1ic............ .....,(800) 547-8440

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

Pacific Wood Preservin9...............................(503\ 843-2122

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

Thunderbolt Wood Treatin9...........................(503) 936-9976

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

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

ROSEBURG

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

Hoover Treated Wood Pr0ducts,.......,....,.,..,.(800) 531-5558

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

Keller Lumber Co. ......(541 ) 672-6528

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

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

R9gKY itggl4qs

COLORADO

J.H. 8ax1er.............. .......(541) 689-3801

Lumber Products.... .......(541) 687-M1 1

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

Rosboro Lumber..... .......(541) 746-841 1 Western Woods, Inc......,...............................(800) 822-8157

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

MEDFORD / GRANTS PASS

Allweather Wood Treaters...,.........................(800) 759-5909

Eagle Plywood Specialties...........................(800) 547-5991

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

Malheur Lumber Co ......(541 ) 575-1 1 48

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

Pacilic Wood 1amina1es................................(541) 469-4177

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

Waldron Forest Pr0ducts,.,............................(541) 474-3080

McMINNVILLE / CORVALLIS / SALEM

Capital 1umber..........,........(541) 223-0020 (866) 898-1 128

Forest Grove Lumber C0...............................(503) 472-3195

Mary's River lumber........,............................(800) 523-2052

Royal Pacific Industries.................................(503) 434-5450

Weyerhaeuser Co. (Albany).......,........... .......(5411 926-n7 1

GREATER PORTLAND AREA

Adams Lumber, 1nc.............(800) 298 -4222 (503\ 245-17 96

B0dyguard.............. .......(503) 643.8800

DENVER

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

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

American lnstitute ol Timber Construction....(303) 792-9559

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

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

Boise Distribution,... ......{303) 289-3271

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

OrePac Building Products......,......................(303) 363-1300

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

GRAND JUNCTION

BMD .,..,.(970) 242-8870

336-391 1

OrePac Building Products......,..,.......,...........(208) 345-0562

OB C0rp.....,.,......... .......(2081756-4248

Thomas Forest Products, J.M...,..,.......,.,.,..,.(800) 962-8780

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

COEUR D'ALENE

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

Braided Accents...... ,.....(866) 440-9663

LEWISTON

Coos Head Forest Products..

Bennetl Forest Industries (Grangeville)... ..(208) 983-0012 ..(866) 590-0088 (208) 799-3388

BILLINGS

MONTANA

Boise Distribution ,....,(406) 6s2-3250 ......(406) 522-0435

Lumber Products............

Weyerhaeuser Building Materials..(877) 235-6873

OGDEN

UTAH

OrePac Building Products.............................(801) 782-1997

Thomas Forest Products, J.M............,.,.,....,.(800) 962-8780

SALT LAKE CITY

All-Coast Forest Products................,...,.,......877\ 263-7848

Boise Distribution.... ......(801) 973-3943

BMD ........................ ......(801 ) 231 -7991

Capital Lumber Co. ......(801 ) 484-2008

Forest Products Sales .........(800) 666-2467 (801 ) 262-6428

Lumber Products..... .,....(800) 888-9618

Thomas Forest Products, J.M..................,....(800) 962-8780

Utah Wood Preserving.........(800) 666-2467 (801 ) 295-9449

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

FAX to 949-852-0231

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

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For more inftrmation from atlvartisers use thc Web site in brackets,

[www,cjredwood.com]

Cal Coast Wholesale Lumber

Capital [www.capital-lumber.com]

Colville Indian Precision Pine [www.cippinecom]........-...,...,.....51

DMK Pacific Corp. .............

Ffetcher Wood Solutions Iwww.tenonusa.com]

Fontana Wholesale Lumber [www.fontanawholesalelumber.com]

Forest Grove Lumber [www Jglco.com]

Forest Products Sales [wwwJorest-prod

Fred C. Holmes Lumber Co...................

Gemini Forest Products Iwww.geminiforestcom]

GRK Fasteners [www.grkfasteners.com]

Co................... ...........45

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

Keller Lumber Co...................

Krauter Storage Systems Iwww.krauter-storage.com],...Cover III

Lausmann Lumber Iwww.lausmanlumber.com].....-...-.-...........31

LWO Corp. [www.lwocorp.com] .............50

Matthews Marking Products [www.matthewsmarking.com] .....37

Norman Distribution Inc. Iwww.normandistcom].......,.-............55

OSBMarket by Silvaris Corp. [www.osbmarketrcom] .................57

Pacific Wood Laminates [www.pwlonline.com] ...........................23

Pacific Wood Preserving Cos. [www.pacificwood.com],.,.............44

Parr Lumber

ProBuild [www.probuildcom]

Redwood Empire Iwww.redwoodemp.com] .........................,Cover I

Reliable Wholesale Lumber Inc. Iwww.rwli.com] ................,,.,....24

Roseburg Forest Products [www.rfpco.com] ......................Cover II

Royal Pacific Industries....... .............19

Selkirk Iwwwselkirkspecialtywood.com] ......................................46

Simpson Strong-Tie Iwww.strongtie.com] ...............................32-33

Siskiyou Forest Products [wwwsiskiyouforestproducts.com].....35

SkuttleTight Inc. [wwwskuttle-tight.com]

Summit Imex [www,cumarudeckcom]

Sunbelt [wwwsunbeltracks.com]

15

Sure Drive USA [wwwsuredrivecom] ..................41

Swan Secure Products [wwwswansecure.com] ............--.-........51

Swanson Group Sales Co. [wwwswansongroupinc,com] ...........25

Thunderbolt Wood Treating [www.thunderboldwoodtreating.com] .............54

TMI Forest Products [www.tubafor.com].......................-....,.......21

Vaagen Bros, Lumber Inc. Iwww.vaagenbroscom] .....................26

Van Arsdale-Harris Lumber Co. .........55

Viance [www.treatedwoodrcom] ......,...........,......................,Cover IV

Western Red Cedar Lumber Association [www.wrcla.org] ...5' 46

Wynndel Lumber Iwww.wynndellumber.com]..................,..........39

Prre'servg

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