Understanding and navigatingfreight challenges

fN 2013, TRUCKS MovED 69.lVo of all domestic freight Itonnage, up from 68.5Vo the previous year. Over the past decade, moving this freight has become increasingly difficult. High driver turnover, a decrease in the number of owner-operators in the trucking industry, and elevated service demand have amplified existing problems such as increased government regulations, a current driver shortage, and increased costs of transportation.

The most significant changes in government regulations that went into effect July 2013 are adjustments in the legal hours of operations. The new rules include a 34hour restart period, which must include two periods from 1:00 a.m. to 5:00 a.m. home terminal time that may only be used once per week and are measured from the previous restart period.

Additionally, a driver may only drive eight hours after the last off-duty time or sleeper berth period of at least 30 minutes. If a driver is stopped at a delivery location and not in his sleeper berth, it is now considered on-duty time and will not count towards his 30-minute break. Longhaul drivers are typically paid by the mile, so the change in rules has meant that drivers are on the road longer without any extra pay. The regulations reduce the number of hours a driver can work, increase the number of required breaks, and add significant costs to the trucking industry.

Today there is also a truck driver shortage. According to the Bureau of Labor Statistics, the average age of a commercial driver is 55. Many younger would-be drivers are drawn to construction and other jobs that pay more. The Bureau of Labor Statistics list the median waqe of a tractor-trailer driver at $38,200, which is 11.87o lower than the average U.S. wage, and drivers' wages are increasing more slowly than other wages. Drivers are typically away from home for long periods and are restricted by new regulations. This limits the amount of income a driver paid by the mile can earn.

Additionally, American Trucking Association (ATA) chief economist Bob Costello states, "At the moment, we already have 30000 unfilled jobs for drivers in the trucking industry. As the industry starts to haul more, because demand goes up, we'll need to add more drivers-nearly

100,000 annually over the next decade-in order to keep pace."

Because drivers are in such demand, the trucking industry is experiencing an extremely high turnover rate. ATA reported that turnover at large carriers is at9l%o and has been there or above for the past eight quarters. A large carrier that has 200 drivers will replace 180 ofthose drivers in the next l2 months.

Further complicating the search for qualified drivers are the Compliance, Safety, Accountability (CSA) regulations introduced in December 2010. Carriers that employ drivers with a history of safety violations or accidents are subject to increased inspections and a lower score. With fewer entrants into the trucking job market, the industry must change.

Many independent carriers and smaller trucking companies have gone out of business due to the increased costs associated with trucking. Diesel fuel has risen from $ 1 .8l/gallon in 2004 to $3 .9Zlgallon in 2013. During the recession, there was price pressure on all goods and carriers had a hard time implementing fuel surcharges for the freight they haul.

The government is proposing that all trucks be equipped with electronic logs. On August l, 2013, the Obama Administration announced a proposal to eliminate "the burdensome daily paperwork required for professional truck drivers." Unfortunately for small or independent carriers, retrofitting equipment with electronic logs will be expensive and add annual per unit monitoring fees.

Beyond fuel and regulation costs, truck operation costs are affected by regular repairs to damaged equipment caused by deteriorating roads; taxes and tolls to pay for

Next Month: Traders Market Preview

Next month's October issue of Building Products Digest will feature an in-depth Traders Market Preview promoting the NAWLA Traders Market Nov. 12-14 in Chicago.

The Traders Market is North America's premier lumber tradeshow, delivering access to the entire supply chain under one roof. Whether you want to sell your product, find new suppliers, or expand your network, you'll find the opportunities and visibility you need at the Traders Market.

The site is the newly renovated Hyatt Regency Chicago. Registration is now open. NAWLA members can receive discounted access to the event.

North American

Wholesale Lumber Association

repair of infrastructure; and the insurance and equipment required to meet security, safety and environmental requirements. The additional costs associated with trucking are resulting in fewer independent and small carriers that are a viable source for moving freight.

Snavely International has responded to these challenges in recent years by increasing its driver fleet. We have found that by paying more than the median wage, turnover decreases and we have greater control.

In the past year, we also registered with the Federal Motor Carrier Safety Administration (FMCSA) and obtained a United States Department of Transportation (USDOT) number. This allows us to pick up and be paid for return freight. While it opens us up to increased regulations, we anticipate the benefits will outweigh the costs.

However, it is clear that the only foreseeable outcome to the increased government regulations, driver shortage, and increased cost of operations will be an increase in the cost of freight. Increased costs to carriers are reflected eventually in increased prices for freight paid for transportation.

If you would like to hear how other companies are responding to these freight challenges, please join me and other NAWLA members at the Leadership Summit, March 24-26,2015. at the The Westin Kierland in Scottsdale, Az.ln addition to numerous opportunities to connect with peers from across North America and hear their perspectives on transportation challenges, the program will include educational sessions on this topic. Additional details are available at www.nawla.org.

CRC Parts With Remans

As it moves away from redwood lumber production, C alifornia Redwood Co., Arcata, Ca., has parted with two of its California remanufacturing plants and is evaluating the best use of its third.

Redwood Empire, Morgan Hill, Ca., has taken over CRC's Woodland, Ca., distribution center and reman facility.

Cerro Pacific Lumber, Redwood Valley, Ca., purchased the equipment at CRC's Ukiah, Ca., reman plant and assumed the lease at the facility.

CRC continues operating its large drying and reman facility in Brainard, Ca., located between Arcata and Eureka. According to president Doug Reed, "after the end of the year, we will evaluate the best use of our Brainard facility. Brainard has a great deal of capacity and flexibility, as well as a seasoned workforce, but our need for it will be reduced dramatically as we exit primary manufacturing of redwood lumber."

Calaveras Buys J.S. West

Calaveras Lumber, Angels Camp, Ca., acquired fellow Ace Hardware dealer J.S. West Lumber & Hardware, Sonora, Ca., effective Sept. 4.

J.S. West general manager David May called the deal "a perfect fit," explaining that the West family was looking to return to its core businesses of egg and propane production, while Calaveras Lumber has wanted to expand to Sonora ever since the local Andy's Home Center closed in 2011.

May noted there were no plans to enlarge the store, but the lumberyard will expand the quality and types of lumber it stocks.

Seneca Starts Mill Overhaul

Seneca Sawmill Co. has begun a two-to-three-year upgrade of its dimension sawmill in Eugene, Or., to significantly increase annual capacity.

The $50-million investment includes installing new milling equipment, sorting system, dry kilns and planer and improving its plus shipping and log yard.

Weyco Moving Hq. to Seattle

Weyerhaeuser Co. will move its headquarters from Federal Way, Wa., to Seattle, Wa., in mid to late 2016, when construction of a new building is complete.

The new facility will cover seven stories and about 165,000 sq. ft.- roughly half the size of its current quarters.

"There are two main drivers for this decision, which we made after thorough analysis of various options for the location of our headquarters," said president and c.e.o. Doyle R. Simons. "First, our 430-acre campus in Federal Way is costly and too large for our needs. Second, moving our headquarters to Seattle will give us access to a larger talent pool to meet future recruiting needs, not just in this region, but from across the country."

The company will divest the land and buildings it owns in Federal Way, where it moved to from Tacoma in l97l.It plans to retain its nearby tech center.

Legally Blind Plaintiff Sets Sights on Home Depot

A former assistant store manager at Home Depot, Arrowhead, Az., who is legally blind has filed a discrimination suit, charging the company failed to accommodate his disability in requiring workers to use smartphones with small screens, and then firing him.

Leslie W. Gibson, who worked for the chain from 2000 to 201l, claims Home Depot would not provide him with a reasonable accommodation when it replaced larger computers with smartphones featuring small screens he had difficulty reading.

When Gibson complained, he was placed on a "performance improvement plan" and ultimately terminated. He is seeking compensatory and punitive damages for discrimination and retaliation under the American with Disabilities Act, alleging a "causal link" between his request for accommodation and his release.

Two years ago, Home Depot paid deaf workers $925.000 to settle a disability discrimination class action suit.

Northern California Mill Sues City Over Water Rights

Roseburg Forest Products has filed a lawsuit to restore longstanding water rights it says were illegally taken from its Weed, Ca., veneer plant by the regional water districts.

The suit alleges that its water rights were reapportioned, without notification, to wood treater J.H. Baxter & Co., Weed.

Roseburg argued the issue is critical to its operations, which require water to process wood veneer and generate power used by the Weed facilitv. as well as commercial and residential ratepayers.

According to the suit, the water rights were initially granted in 1932 and transferred to Roseburg when it purchased the land in 1982. Roseburg said it offers and continues to sell a portion of its water, and it has been providing free water to the city, persuant to a 50-year lease deal set to expire in 2016.

r SUPPIIER Briefs

Interfor has decided to make permanent the closure of its Beaver, Wa., sawmill and Forks, Wa., planer, consolidating production at its Port Angeles, Wa. The sawmill closed June 27,lhe planer soon after (see Aug., p.28).

Sierra Pacific Industries, Anderson, Ca., has completed its purchase of Hurd Windows & Doors and Superseal Windows & Doors, Medford, Wi., from Longroad Asset Management.

SPI will continue the Hurd and Superseal brands within its windows division.

Boise Cascade Co. curtailed operations at its Elgin, 0r., plywood mill and stud mill Aug. 30 to Sept. 6, as it installed new equipment at its log utilization center.

Pacific Western Wood Products, Los Angeles, Ca., is now distributing Trident Luxury Vinyl Flooring interlocking planks.

Weyerhaeuser Co., Federal Way, Wa., has launched a stock repurchase program of up to $700 million of its common shares.

Feeney Inc., oakland, ca., added an 87,000-sq. ft. DC in Cranbury, N.J., to service dealers east of the Mississippi River.

Kodiak Building Partners, Denver, Co., has purchased fabricators/distributors AO, Inc., Dallas, Tx., and Barnsco Inc., Dallas.

Gali Bamboo, San Diego, Ca., has been named to the /nc. 5000 list of the fastest growing private companies in America for the sixth straight year.

National Frame Building Association has revamped its website at www.postframeadvantage.com.

MacBeath Moving from Galifornia

MacBeath Hardwood Co. will relocate its corporate headquarters from San Francisco, Ca., to Edinburgh,In., on Sept. 15.

For the first time in its 60-year history, MacBeath will have its production facility, c.e.o., c.f.o., and financial heart of the company all under one roof. While its four distribution centers in California are unaffected, the company cited "ongoing challenges in conducting business in the state" as factors contributing to the move.

MacBeath Hardwood was established in 1954. The company offers domestic hardwood lumber, imported lumber, panels, manufactured wood products, finishes, adhesives, hardware and tools.

Hayward Grows in Redwood CitY

Hayward Corp., Monterey, Ca., has relocated its Redwood City, Ca., operations from the former T&H Building Supply property to a larger, more accessible site with a better layout.

"Our new lumberyard and hardware store will expand Hayward's Bay Area presence and give us the opportunity to grow our business by better serving our local customers," said William E. Hayward, president, c'e.o. and chief sustainability officer. "It will also introduce our brand to a large group of new customers."

Later this year, the new facility will add a Hayward Design Center, stocking Kolbe & Kolbe, Marvin, Unilux, Jeld-Wen, Rogue Valley, and Lemieux doors and windows' Hayward, which operates seven lumberyards, six design centers, and a roof truss plant, acquired T&H last year.

Parr Lumber Co. opened an 8,500-sq. ft. Pan Design Center showroom in Aloha, 0r.

Basic American Supply has opened in Colorado City, Az. (Chuck Bradshaw, mgr.).

ABC Supply has opened its first location in Montana, in Billings (Adam Snavley, branch mgr.).

Habitat for Humanity nas opened a second ReStore discount LBM outlet in Boise, ld.; remodeled its branch in Newport, Or.;and is relocating its 15,000-sq. ft. unit in St. George, Ut., to a 40,000-sq. ft. building that formerly housed a grocery store.

Anderson Mouldinq Doors & Windows, culver City, Ca., has opened a neil Door Store America showroom in Gardena, Ca., and launched a new retail site for doors (doorstoreamerica.com).

True Value Hardware, Salida, Co., was honored as Business of the Month by the local Chamber of Commerce.

Anniversaries: Garr's Ace Hardw?rc, Marysville, Wa., 90th Shelly's True Value Hardware, sparks, Nv., 70th ... Timb6rline Ace Hardw?IO, Telluride, Co., 45th Cali Bamboo, San Diego, Ca., 1Oth

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Koppers Buys Osmose Units

Koppers Inc.. Pittsburglr. Pa.. hls cotttplctcd the acquisition of thc Woocl Pre-sct'vittion ancl Rlrilrolcl Serviccs businesses of Osr.nosc Holclings lirr $i4t):l.l nrillion.

The Wood Preset'vation bttsincss has bccn rctlltnlecl Koppcrs Perfixntancc Chctniclrls. Thc Raillttacl Scrviccs br.rsiness is now Koppels Railroacl Strttcttrt'cs.

Rough & Ready Up & Running

Rough & Rcacly Lumbcr Co. has rcstarlc(l its Clrvc .lunction. Or.. sawrnill. l-5 months aftel shutting cltlun clttc to an Llnccrtain tintbcr supply.

Follrlwing a li(r-rrillion up-tracle. the ntill rlo\\' IcillLrrcs a ncw rcsaw, high-spcccl rtang eclucr'. ancl tritrtrttct'stackcr softcf

Forty, crnploy'ccs \\'L-re rehirccl to get the litcility back on linc. with anothcr 30 crpcctccl to return by thc tirne thc companv rcsLlnrcs salcs this lttonth.

PLM, ILM Launch Combo Website

Pennsr'lvurtiit attcl lncl iltna l-rtrnhermens Mutttal Insrrrancc Conrpanics hitvc latttrchctl a new website at rvu"'ru .pI tri Inr.coltt. cttrttbi n i n g inlitrnration from thc tlvcl previous companl sitcs in a ttcw litrtttat that cnhances prc\ i()u) lL'iltu|.e \ lrtttl itttlltrrr c\ tl\t' l t' \l)t'ti1;111.

The rccent affiliation ol'PI-M lncl ILM has lctl to a r-rur-nbcl of improvcmcrrts lirr both cotnltanics irt tltc llursr-rit to prove that to-gether. thcy llc bcttcr. Accot'tling to Stcrc Firko. PLM/ILM senior v.p. ol'nrarkclittg & I'iclcl opcrlrtions. "PLM and ILM have consistcntll ntaintainccl lon!Istancling relationships with custonlcrs. stt'ir in,g t() l'ctllrlili aheacl ol'clrangcs in thc intltrslr'ics wc scrvc and prtlvide the lrost Llp-1() clatc irtlitrnllrtiotr tlccclccl to llrotect oul' cLlstonrcrs. Thc ncr,r' $'cbsitc |cl'lccts lllis goal and ()nee ;.lgltill proves uhr' 'togcthcr. wc'rc bcttcf ."'

When entcring thc wcbsitc. visitors alc grcetcd b1 a scrolling banner that highlights ctlrrcltt collll)illll initiltir cr and pertinent custollcl' inlitrrttlrtion. Thc ttcrl laltlttt proviclcs lbr easiet' navigation thlotrgh both olcl rttltl nc* illfornralit'rn. creating an indir iclLrllizetl ttsct'crpe tie llcc.

According to Firko. thc ricbsitc tttot'c closclr' alisns witlr thc company's mission ttt bc rccttgltizccl rts thc prcnricr insulancc provider scrvins thc lLtntbcr. utltlcluot'kit.tg ancl bLrikling rraterial inclustries. "Thc ncu u cbsitc lircttscs orr provicline customcr scrvice thc uar ottr cLlst()tllcl's u'allt it." suirl Firko. The nerr forntat allo\\ s ctlstolllgl'5, t1r vic\\ inlirrnration rvhcn thel'\\'ant it. n'het'c thev u'attt it. attcl on any dcvicc- all u ithout losing an1' firnctionality.

Lumberman Convicted of Wire Fraud

Thc o',r'ncr-/nrlnllgcr ol' Cal i bcr Forest Products. Tttrrrcr. Or'.. hus bccn scntenccrl 1o lll ntotrths in prison and ttl pa1' S2. I nrillion rcstituti()n.

Willianr ClaLtssctt. 7 | conf'cssccl to se llin-u rnore than 60 cliscor.rnte cl inroiccs llont 2(X)(r to 2(X)tt to Middleman Northuest. Lakc Osrvcso. Or.. lirr ltrtlclucts that he clid not ship or lor funcls tltirt hc hacl llrcrttly collcctctl.

As a result ol'bcins unublc t0 c0llect otl tl'tc boglls inroices. Micldlcrnan Noltltwcst clcl'ar,r ltctl otl loalts. clestroy'cd thc creclit ol'owncr llt'iln Kinclitl. ancl clcplctccl thc savings of' Kincaicl's lathcr. u'ho ltlrcl pcrstlrtallv sLlaranteed a line of credit.

Steve Hagen, Western Woods Inc., Chico, Ca., and former co-owner of Unity Forest Products, Yuba City, Ca., has retired after 40 years in the industry.

Tony Carpenter, Ken Carter, and George Hammann, all exCalifornia Redwood Co., are new to sales at Western Woods Inc., Chico, Ca.

Jeff Wedge, ex-CertainTeed, has been named national director of window sales for BMC, Boise, Id. Thomas "Fritz" Shatlah is new to door and hardware sales in Belgrade, Mt.

Patti Wells, ex-Royal Plywood, is new to particleboard sales at Collins Products, Klamath Falls, Or.

Gary Powell has been named c.e.o. and Ben Powell is now president of Matheus Lumber Co.. Woodinville. Wa.

Jon Friesen is now mgr. of Parr Lumber, Tacoma, Wa.

Mike Morse has been named sales mgr. of the Contractor Direct division of Bridgewell Resources, Tigard, Or.

Cornelia Sprung, ex-Weyerhaeuser/ TrusJoist, has been named marketing mgr. for RedBuilt, Boise, Id. New regional mgrs. are Mike Hayley in the South Coast and Jason Weber in the Intermountain Region.

Mack Hogans, ex-Weyerhaeuser, and Kris Matula, ex-Buckeye Technologies, were elected to the board of Boise Cascade, Boise, Id. Director Samuel Mencoff has resigned.

Tom Takach has joined Sierra Pacific Industries, Anderson, Ca., as v.p. operations for the window division, overseeing SPI's Red Bluff, Ca., facility and two newly acquired Hurd and Superseal plants in Wisconsin. Also in the window division, Bob Taylor has been promoted to v.p. of business development & customer service. and former Hurd president/c.e.o. Dominic Truniger is now v.p. of sales & marketing.

Michelle Overbeck. ex-Orchard Supply Hardware, has joined Big Creek Lumber, Davenport, Ca., as marketing mgr.

Jon Ohlson, SDS Lumber Co., Bingen, Wa., has retired after 3'7 years in the business.

Jim Webb, ex-Orepac Building Products, has been named customer relations mgr. at Accent Windows, Denver, Co.

Jeff Ward is the new lean champion for Franklin Building Supply, Boise, Id., overseeing lean projects.

Alison Campbell, ex-Stimson Lumber, is now senior log accountant for GreenWood Resources, Portland, Or.

Erica Rocha is new to inside sales at Associated Building Supply, Oxnard, Ca.

Gene Richau has rejoined T&R Lumber Co., Rancho Cucamonga, Ca., as western division sales mgr.

Kristi L. Gall has joined the sales & marketing team at Distinguished Boards & Beams, Carbondale, Co.

Timothy Coutu is new to sales at KP Wood Ltd., Vancouver, B.C.

Wendy Canchola has joined Weather Shield Windows & Doors, Medford, Wi., as regional sales mgr. for the western U.S., covering California, Oregon, Washington, Idaho, Montana, Nevada, Arizona, Utah. Alaska and Hawaii.

Colleen Boyles has been promoted to store mgr. at Home Depot, Santa Fe, N.M. Brett Carli has transferred from Santa Fe to become store mgr. in Durango, Co.

Clarke Poos has been appointed mgr. of the Habitat for Humanity ReStore in Buena Vista, Co.

Ralph Goldman, ex-Milgard, is the new marketing mgr. for Cascade Windows, Valley, Wa.

Randy Nagle, ex-BMC, has been named v.p. of sales & marketing for Laloma Windows & Doors, Tucson, Az.

Eric Brown is now director of corporate communications for Johns Manville. Denver. Co.

Mary Rita Dominic has been appointed quality mgr. for Deceuninck North America. Monroe, Oh. Pat Dixon is a new technical services specialist.

Craig Menear will become c.e.o. of Home Depot, Atlanta, Ga., Nov. l, succeeding Frank Blake, who will remain chairman. Ted Decker has been promoted to executive v.p.merchandising.

Quent Ondricek, v.p. of lumber & building materials, Do it Best Corp., Fort Wayne, In., is retiring Oct. 24, to be succeeded by Gary Nackers. Nick Talarico has been promoted to divisional mgr., overseeing the hand tools, plumbing, cleaning, housewares and InCom departments. Betsy Hartman succeeds him as mgr. of internal audit.

Paul Drobnitch is now director of corporate development at ABC Supply, Beloit, Wi.

Kalvin Eden was promoted to national sales mgr. for the U.S. at BW Creative Railings Systems, Maple Ridge, B.C. James Webb is now national sales mgr. for Canada., and Scott Rolufs, regional sales mgr.

Rob Brown. c.f.o.. Hardwoods

Distribution, Langley, B.C., has been appointed acting c.e.o. while president/c.e.o. Lance Blanco recuperates after a cycling accident.

An Di Nguyen, ex-American Hardwood Export Council, has been named president of the Softwood Export Council, effective Sept. 15.

Stephen H. Meima has been appointed executive director of the Gypsum Association.

Chris P. Bacon now heads the employee cafeteria at MungusFungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

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Ply Gem Buying Simonton Windows

Ply Gem, Cary, N.C., agreed to buy Simonton Windows from Foftune Brands Home & Security for $130 million.

Expected to close in October, the deal includes window plants in Pennsboro, Harrisville and Ellenboro, W.V.; Paris, Il.; and Vacaville, Ca., and the SimEx extrusion plant in West Virginia.

Simonton will operate as a stand-alone business unit.

Tipsy Trespasser Topples from Hardware Store Rooftop

A woman and her date are facing trespassing charges after she fell off the roof of a San Diego, Ca., Crown Ace Hardware and hit her head.

Police said they arrived on the scene Aug. 8 just after l:30 a.m. to discover the woman with head injuries and the man, also allegedly inebriated, still on the roof. She apparently had tried to climb down and fell through an awning. striking the ground l5 feet below.

OSB Design Modified for Stability

An inventor from Show Low, Az., is pitching a new sheet design he says will allow OSB, plywood and drywall to be installed more securely during construction.

He says The Wave Joint provides a wider surface to anchor the sheets to a rafter or stud and allows use of the full width of the rafter or stud for mounting, improving the project's structural integrity.

In addition, improved placement of nails and screws reportedly results in a safer connection, despite accommodating standard fasteners. Because of its ease of installa- tion, it also saves time and effort on the job..

The inventor retained InventHelp, Pittsburgh, Pa., in hopes of finding manufacturers or marketers who will license or purchase the design. "l feel this new style of panel will be beneficial to anyone in the construction industrv." he said.