Merchant Magazine - October 2014

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The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. t180, Newport Beach, Ca. 92660.1872 by Cutler Publishing, Inc, Periodicals Postage paid at Newport Beach, Ca., and additional post offices. lt is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 westem states. Copyright@2014 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without writlen permission. All Rights Reserued. lt reserves the right to accept or rejecl any editorial or advertising matter, and assumes no liability for matedals fumished to it.

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By Alan Oakes

Two-by-four-ish

[rnsr, rHE ovERALL NBws for the year still sounds on a good, upwards path, .1] while trailing most economic forecasts for new building starts. Telephone calls have shown reasonable support for the year to end on a good note, although I still hear that "we are busy three days a week, but the other two are dead."

Economic issues remain that suggest there will still be the occasional bump in the road, and that is why I sometimes shake my head at what I see happening on a state govemment or local judicial level. There are states that have created a real pro-business atmosphere. Utah, Wyoming, Nebraska and Virginia are high on my list, for example. Among large states, there's Texas.

On the other hand, my attention is more on California, where I reside-the world's eighth largest economy and a state with one of the highest poverty levels (about23Vo).It is often appears so anti-business it can make you want to pack your tent and move out-as, of course, many have. I saw that first-hand with a company I bought about 15 years ago, as prior ownership on a tax change bailed to Nevada overnight.

This week, I could not help note the Tesla company deciding on Nevada over California for its new battery plant, which would bring about 6,500 jobs. I cannot argue on whether or not it was worth it to California, considering the incentives that needed to be given, but as I have seen this decision before, I would expect that there were other concerns about how our State government operates and how to get things done after the initial agreements are signed. Tesla stated that Nevada was a "get things done state." Our govefnor stated that it would have cost the state's taxpayers too much. Of course, there are a lot fewer of us than there used to be.

I also note that in a state where government pensions are highly underfunded, the board of CaIPERS arbitrarily decided that 99 special bonuses that are paid to public employees can now be allowed for pension calculation. Understand that many of these bonuses are paid for jobs they should be doing anyway. This type of decision is absolutely crazy, but commonplace.

I feared we had reached a tipping point, upon learning that several California counties, including Marin (surprise, surprise), had gone after Lowe's for allegedly selling dimension lumber that didn't quite measure 2x4.1'm sure I wasn't the only one imagining all the new store signs advertising "1.55x3.62."

Fortunately, that seems unlikely (see story, page 13), but the fallout from relentless regulation is real. Our wonderful state (and I mean that) continues to crumble. Our infrastructure is falling apart. We were a leader creating energy and water systems, dredging harbors, building freeways. But today, instead of investing 20Vo of our budget in infrastructure, we are now down to about 5Vo.It is estimated we should invest about $500 billion over the next 20 years-fat chance! Consequently, coupled with high taxation, we have become a target for other states to poach our companies, entrepreneurs, tech base, and skilled employees.

I am sure California is not alone, but each and every state needs to create a business environment that allows companies to grow and invest and provides less incentive to flee.

On the other hand. I could not but notice while there a few weeks back, the EEC in Europe has now banned high-powered domestic vacuum cleaners. Perhaps they can be shipped here, to help clean up some of this mess - starting in Sacramento.

Alan Oakes. Publisher ajoakes@aol.com

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A publication of Cutler Publishing 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Publisher Alan 0akes ajoakes@aol.com

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Contributing Editors

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Carla Waldemar

Advertising Sales Manager Chuck Casey ccasey@building-products.com

Adminishation Director/Secretary Marie 0akes mfpoakes@aol.com

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WE'RE READYTO MAKE A BIG COMMITMENT TO AN EVEN BETTER 20.15.

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Lumber dealer

designs its own app

fr's Nor UNUSUAL for building material manufacturers to Idevelop their own apps, to help mobile device-toting consumers or contractors quickly access product specs and images in customizable settings.

Lumber dealers typically don't develop their own apps, however. Yet US LBM Holdings has just released its fourth app, for its Schenectady, N.Y.-based Bellevue Builders Supply division.

US LBM, whose 13 divisions operate a combined 80+ locations in 11 states, introduced its first app six months ago for Chicago, Il., dealer Hines Supply. Apps followed for Wisconsin Building Supply and John H. Myers & Son of Pennsylvania and Maryland. Two more divisions will release their versions of the app by mid-fourth quarter.

Like its sister companies' apps before it, the Bellevue Mobile App allows users to:

. Check orders and track deliveries with real-time GPS updates,

. Message deliveries' status to general contractors or subs,

. View photos of the delivered order, Access recent deliveries and search delivery history, Check account information anytime, anywhere, View open invoices, upcoming bills, and billing history for a specific job using quick filters,

Check the latest promotions and upcoming events, Share via email, print or save on their phone, Choose an event and be automatically registered.

To market the app, Bellevue is running "a very elaborate marketing campaign," which includes a feature video, statement stuffers, in-store banners, email blast, and popup banners for trade shows and events. In addition, all store sales personnel have been trained in the app to help customers with it.

"We created the Mobile App specifically for the professional remodeler, commercial and custom builder. We know and understand their business and the tools they need at their fingertips," said Bellevue president Greg Gaskell. "This investment in technology is part of our continued commitment to customer service excellence."

The roll out has been over two years in the making, dating back to US LBM's installation of an advanced delivery system that would "serve as the backbone for the app,"

Building-Products.com

said Senthil Arumugam, the US LBM v.p. who spearheaded the project. "We set a long-term vision for our logistics needs in early 2012. Part of that vision was to provide customers with the ability to access their delivery information without having to call or email. We also built other useful features into the app around this crux."

The apps typically are released first in an iOS version for iPhones and iPads, with an Android version following about a month later.

The app is integrated with US LBM's ERP and delivery management systems, and is serviced internally. The app currently cannot be used to purchase products, but that may be a possibility in the future.

NEW APP from New York dealer Bellevue Builders Supply is only the latest for oarent US LBM.

What to expect when youtre expecting a

steps for a smoother transition new ERP system

3

Protect Key Processes

Businesses depend on processes like receiving inventory, picking orders, and delivering product. Your old system and new system may handle these processes differently. If you don't identify the differences in advance, you set yourself up for unwelcome surprises. Missing documents, unpicked orders, and late deliveries cost time, money and customer satisfaction.

Documenting procedures prior to implementation helps minimize operational hiccups. A side-by-side comparison of how your current and new systems handle things makes it easier to spot differences. You don't have to document all processes, just the most crucial ones. To determine which are most critical, ask basic questions. What makes your company unique? What do customers value most? What services would be catastrophic to lose? Start with the top three to five.

IIJHnN cHoosrNc e, new ERP sysV V tem, the focus is all on the "what": features, benefits and options. Few people consider the "how": transitioning the business to the new system. Implementation is seen as the responsibility of the software provider, and businesses assume the new vendor will take care of all the details. But successful transitions begin long before a contract is signed.

Changing ERP systems affects more than software; it affects every aspect of an operation. Therefore, a

successful transition takes a company's unique processes, goals, and culture into account. And while your vendor is (hopefully) an expert in your industry, they won't be experts in the hundreds of details specific to your company. A self-assessment brings critical insights to the implementation process. Preparing in advance minimizes set back and helps businesses get better value from the new system. If an ERP change is in your company's future, start laying the groundwork with the following steps.

A complete process description identifies the who, what, where, when and how of each step. For example, the documented procedure for completing an order specifies who enters the SO, prints the tickets, picks the product, and stages the deliveries. It also includes details like how often tickets are printed, where the staging area is. and when inventory is reconciled back to the system. Don't assume you know all the details: consult the people who perform these tasks every day. This exercise is a little more involved than it first appears,

YOU DON'T have to wait for a software vendor to get ready for an ERP transition. Your transition will be smoother and you will get more value out of your software if you prepare ahead of time.

Pick ticket is automatically printed in the warehouse.

your current system and imported into your new one. Before importing the data, there's an opportunity to update and standardize it. This is where you can improve the quality.

Spend some time documenting the kinds of data problems you currently have. Make sure you involve representatives from sales and purchasing in these discussions. Create standards for naming items, entering attributes, and organizing customer records. Keep a master document of these standards for reference. There will probably be exceptions to every rule. Some items won't fit neatly in the new guidelines. That's why you want to start developing the rules in advance. It will take a while for outliers to reveal themselves, and you'll probably revise the standards a few times. Allowing plenty of time for this process means you'll be more likely to end up with a solid system that works for your business.

Manage Your Managers

about what to expect during the adjustment: slower employees, lower production levels, longer turnaround times. They'll need to be patient during this time period. Emphasize that these are temporary conditions. Highlight the benefits that will come when everyone masters the new ERP system, like faster processes, less busywork, and fewer errors. Preparing managers ahead of time will make them more likely to stay positive during setbacks. This applies to all levels of the organization. Mid-level managers will feel less pressured if the executive team actively supports the change and demonstrates patience. Conversely, if the c.e.o. keeps complaining about lower production, it will be difficult for anyone to keep a positive attitude.

Warehouse supervisor assigns ticket to first available picker.

BEFORE IMPLEMENTATION, document and compare how your existing system and your new system handle key processes.

so it's vital to start well in advance of switching to a new system. Waiting until the implementation begins means you'll be pressed for time and more likely to overlook something.

Glean Your Data

Information is the lifeblood of a business. The simplest transaction requires pricing, inventory, payment and account records. Unfortunately, most businesses have less-than-perfect data. Inconsistent naming systems, duplicate records, and missing information are common. A business might have three different product codes for the same l0-ft. piece of southern pine: 020410SYP, 24lopine, and 24 l0StPn. Poor data quality affects every aspect of an operation, from order entry to picking to dispatch.

Your ERP transition is an opportunity for a clean start. As part of the change, data will be exported from

No matter how amazing an ERP system is, business operations will temporarily slow during the transition. It's not just learning new software. Some of your employees have been doing their jobs in a certain way for years. Changing their methods will be challenging and take time. Unrealistic expectations about a fast, easy switch impede progress as impatient managers spread discontent through their departments. Successful transitions require support from the top down. Make sure managers are clear

An ERP implementation is a window of opportunity. Decisions during this time can bring significant improvements to an organization. Asking an outside vendor to make all those decisions for you wastes the opportunity. Assessing your operation in advance means you will come to the implementation process with clear goals and objectives. It will help ger the maximum return on your software investment.

Inside sales rep enters and submits order at front counter.

- Jessica Arant is tommunication coordinator and Jared Plucknett director of implementation for DMSi Software, Omaha, Ne. DMSi provides business and accounting software exclusively to the lumber and building materials industry.

SALES AND purchasing staff should provide input on any new naming standards.

By lan Falivene, Weyerhaeuser

Modeling software r s dealers an edge glv€r selling to builders

IIJITH coMPErIrIoN tougher than Y V ever, LBM dealers need to think beyond price and reliability to remain competitive. Dealers who are able to set themselves apart through value-added services can attract and retain customers by saving them time and money, eliminating jobsite hassles, and improving their business processes.

Three-dimensional modeling software, such as Javelin from Weyerhaeuser, is one such valueadded opportunity. By converting a customer's house plans into a 3D model of the structural frame, the

dealer can optimize the layout of members for efficiency and accuracy, while streamlining materials and ordering.

Once the house plans are imported into the modeling software, the dealer draws out the plan to capture the exact lengths as the program creates a 3D model of the structural frame. By seeing the house in this way, the dealer and builder can more easily spot issues that, without the tool, may not have been caught until installation-a costly and time-wasting problem.

It also can be used to define locations for plumbing and mechanical

runs, providing precise placement of holes in joists and beams while ensuring that issues, such as a toilet placed on top of a joist, don't occur. Finally, the process may highlight redundancies in the framing or an opportunity for small changes that can save material costs.

From there, a dealer can generate material lists and quotes, as well as placement plans, plus provide documentation on design values.

Taking it a step further, the dealer can provide additional value-added services by sending the plans to Weyerhaeuser's Stellar software. Using Stellar, the dealer can choose to generate an optimized list of materials with cutting instructions to ship to the jobsite or, when combined with an automated cutting solution, create a NextPhase Site Solutions framing package that includes pre-cut materials that are marked, labeled and bundled for ease of installation.

When the bundles arrive on site, the framer installs each piece in order, ensuring accuracy and eliminating the need for cuts. This solution not only reduces construction time and the labor, it optimizes material usage and handling in the yard and increases turns that result in lower inventory carrying costs.

Such technology is particularly helpful in areas of the country where

JAVELIN software from Weyerhaeuser allows dealers to build a complete model of the structural frame, optimizing the layout-of members for efficiency and accuracy, while streamlining materials and ordering.

engineers and architects typically aren't active on a home project. In regions where engineers are more prevalent, such as California, builders may not need the full set of services, but the program will still help the dealer build an accurate material list, generate quotes, and even provide cutting and assembly information.

If 3D modeling is too big of a step, dealers might first consider moving to a takeoff program such as Estima, a more efficient, automated process than manual takeoffs. The tools offer win-win benefits: better accuracy for builder customers, plus time-savings and fewer errors on the back end.

2x4 Suit Troubles Dealers

Lumber dealers are wondering if they could be next, after a California Bay Area judge ordered Lowe's to pay $1.6 million for allegedly selling and advertising lumber using incorrect product dimensions.

The payout ends a civil enforcement action brought by the district attorneys of Marin, Los Angeles, Monterey, San Joaquin, and Stanislaus counties.

Lowe's said it had traditionally identified products with the dimensions provided by its suppliers. The chain will now list certain commodity products by their common name (such as2x4) as well as their actual measurements (1.5x3.5). Under the deal, Lowe's was required to immediately remove products from sale or correct any misleading descriptions.

News of the settlement gave pause to dealers, concerned they too might have to pull lumber from their shelves and relabel in nominal sizes. Apparently, however, Lowe's ran afoul for labeling products in nominal terms that did not match even nominal dimensions.

West Coast Lumber & Building Material Association advises dealers to ensure all dimensional lumber is received from suppliers in correct quantities, with both nominal and actual sizes listed on the invoice. Nonstandard items must be identified in actual sizes, not in common nominal terms for lumber identified in PS 20-10.

What's more, built-in analysis and retention tools allow dealers to maintain profiles of customers and analyze their preferences for products, brands, order of materials, etc.-for example, how they like to frame corners-and make adjustments accordingly.

The analysis provided by takeoff and modeling programs can also can help guide your inventory. For example, based on cutting history, you can determine common lengths of material that is cut; from that you can order and stock those lengths in the yard to

reduce cutting and order processing.

Along with implementing these types of technologies, dealers will need to actively communicate the end-user benefits. Be sure to demonstrate to builders how these programs save them time and money-and how they can't get such a service from the yard down the road.

Fr^ B.^ - Engineered

Wood products

- Ian Falivene is senior product managerfor software at Weyerhaeuser.

By The Hardwood Manufacturers Association

floorihgr finishes that add value to the home Selling hardwood

f fgr-ptNc HoMEowNh.RS, remodelers lland builders select hardwood flooring for their homes can be a valuable investment. Surveys estimate that hardwood flooring can add as much as $7,000 to $10.000 to a home's resale value. And a study conducted by the National Wood Flooring Association revealed that 99a/a of U.S. real estate agents asserted that homes with hardwood flooring are easier to sell; 907o said that homes with hardwood flooring sell for more money-up to 1.07o more, in fact.

In order to get the most out of their valuable investment in American hardwood, here are the flooring options they need to know about before they buy:

Solid Wood Floors

Solid hardwood flooring comes in three basic types: strip, plank and parquet.

Strip flooril?g accounts for the majority of hardwood installations. It is installed by nailing the wood to the subfloor.

Plank floor boarcls are at least 3" wide, and can be screwed or nailed to the subfloor.

Parquet f'looring comes in 6"x6" blocks, but specialty patterns can be made much larger. Parquet floors often create a dramatic geometric look.

One tip to keep in mind is that solid hardwood flooring expands and

CREATIVE HARDWOOD flooring applications, such as this transition from one room to the next with a creative blend of maple and walnut, add significant value to a home. -

(Photo couftesy NationalWood Flooring Assoclalion)

contracts cluc to chlnqcs in your hone's huntiditl'. Installers can contpensate fbr this b1' lcai'ing alt expansion gap betu,een the 1'loor ancl thc wall.

Engineered Wood

Engineered wood is made of rnultiplc la1,e1s of diff'erent gradcs or styles of wood that are stacked and gluecl toscther under high heat and pressure. This type of flooring is less likcly tcr bc aU-ectcd by changcs in humidity.

Wood Laminates

Wood laminatcs consist of a pl,vwood base topped with a la1,er of vencer. Thc vcneer coatirrg on *,ood laminatc 1'loors cun be sandcd and rel'inishetl un t() lhtce trrrrc: irr rrrosl cases.

After selecting the tvpe ol' harclwood floorin-t. thc next step is choosin-e a finish that uill enhance thc wood's beautl' ancl protccl tl'rc 1'loorfrom evervdir)' \'!'ear. dirt and lt-toisture. The finish u'ill also -{ivc hardwood a rich color and luster to ntatch 1,our home's look and feel.

There are a few hardwood finishint options to choose liom:

Surface Finishes

Thesc are the most popular choice of stains. and involve apply'ing a stain to achic','e color follori'ed by a top coilt to acld a la1'er of protection. Surfacc finishes are dulable and easv to rrurinltrirt.

Oil-busel rtretltutte is the most conrmonlv usccl floor finish. It is ar,ailablc in clil'f'crent shccns. nnd is genclallv apltlicrl in multiple coats and aiso anrbcrs vu ith agc.

Wutcr-bu.sctl urcI ltttttc provides a clear finish and produccs t'ewcr odors, quicker clry timc ancl easicr clcan-up.

Moisture-t'ut'ctl urcthunc is a solvent-based solution mosf ly usccl in commercial applications. It is rnor-c durable and moisturc-resistant thalt other options.

Conversion varnishes are a prof'cssionals-only application product that is often used in commercial spaccs.

Penetrating Stains & Ftntsnes

Thcse finishes penetrate the 'uvood to lornt a protective seal. The stains soak in to provide the color. and a wax coating pror.,ides a lou'-gloss satin shccn. Thesc finishes require

spccial carc. as certain products (rvatcr-hascd products) should not be used on the floors.

Sheen Options

Choicc o1'shccrr is a personal prcfererrce but it's hclplirl to kccp in ntincl that high-gloss finishcs shou, scuffs and scratchcs morc casilv than lorigloss or satin finishcs. tJirh-gloss I'inishes also re flccl ntorc lisht uncl itr.c typically usccl in contnrclcial scttings. while satin finishes arc usuallv lrruled l'or rrrorc tludiliorrul irPPlietitlOns.

Extra-Durable Finishes

One of the latest trends in harclwoocl finishes are products designecl to ertcnd the life of the floor ancl nrakc thcrn extra-durable. Somc manutacturcls state that these finishes are l0 timcs ntore clurablc than other finisl'rcs. ancl can last fbr up to 25 ycars. Swcclish l'inishcs and acrylic f inishes are the rnost popular types of extraclurable products.

- f'or tttort itt.litrrtttttittrt ott tltoo.sitt! lturdv'ood .flortritt,q ttrrt! f itti.sltc.s t i.sit vt'tt yt,.ltu nt v r tt xl i t t li t t r t tt.

5 tips to tell when itts time for a new entry door

and possibly moisture. That means it's time to determine if the foam-filled weatherstripping may have lost some of its compression, cracked or simply worn out.

Tip #3 - Examine the locks to make sure they operate smoothly and are strong enough to help protect the home. Multi-point locking systems offer exceptional peace-of-mind and security for the home.

H:H:XT:I;,'3'"': il''':,fi":,T

at the front door. That's the advice of experts at Therma-Tru, who suggest your customers evaluate their main entry door at least once a Year to determine the status of the door's operational capabilities and energy efficiency features.

helping the customer to realize it's time for a change.. (Photo

several easy ways to determine when it's time to consider a front door replacement.

"Every component of a home needs to be replaced at some Point over time," says Brad Johnson, v.p. of marketing for Therma-Tru. "Most homeowners can get years of service out of their front door, but there will come a time when a door needs to be replaced. That's why it's important to annually evaluate and maintain your main entryway."

According to Johnson, there are

Tip #1 - Open and close doors in the home, on both drY daYs and wet, humid days. Make sure all the components operate smoothly. If the door doesn't close securely or fits tightly on humid days, then it's most likely leaking air in dry weather, causing the home to lose energY.

Tip #2 - Inspect the weatherstriPping around all sides of the front door to make sure it has not worn out. On a bright day, stand inside near the door and look for daylight flowing through the door perimeter. If light is coming in, then so, most likely, is external air

Tip #4 - Reach out and touch the door on both hot and cold days. If you feel the exterior temperatures on the inside surface, then the door may not have adequate insulation. In this situation, consider upgrading the door with a replacement that is more energy efficient and has an ENERGY STARqualified rating for your geographic area. Order a multi-point locking system on a new door for a tighter fit against the weatherstripping, which can help provide even greater energy savings.

Tip #5 - Look at the aPPearance of the door. If it's a wood door, it maY be warping or rotting after years of service. A steel door can get dinged and rust over time. And, it's possible that the style of the door simply doesn't match up with the design of the home. These are all red flags that it's time to replace a front door.

STEP ONE in making a new entry door sale is

couftesY Kuiken Brothers)

By Tom Zimmerman, Boral

New siding options offer improved performanGer trad itional aesthetics

/-\ven rHE pASr several decades, the \-Zpopularity of manmade siding has grown exponentially. Builders have latched on to products with a wide range of offerings and varying value propositions, while architects seek both aesthetic and performance advantages.

Manmade sidings try to replicate wood with faux grains and attempts to match traditional profiles, although they may not be suited to the local environment or meet the architectural style. Consumers are faced with making a choice that balances installation, longevity and aesthetics.

Despite beneficial qualities, many manmade siding products still suffer from a number of functional issues. Homeowners are faced with ill effects of faulty over-hyped materials and installation. Issues include funsal decay. buckling panels. .*."rriu. moisture retention, and cracking edges. Builders also face challenges in product thickness and overall shape, making it difficult or impossible to recreate the profiles used in traditional construction.

Some common problems relate to:

Installation: Various offerings of manmade materials can be difficult to handle and may require special tools for installation. Manufacturers' guidelines may be hard to follow and go against field installation methods, making it difficult to achieve a warranteed install. Due to their weight, brittleness or lack of impact resistance, boards can be difficult to handle and install.

Moisture : Several exterior products are susceptible to moisture, leading to failure of the product if not properly

installed. Depending on the material, moisture will affect it in various ways including delamination, expansion and contraction-even all the way to product failure. When using these products, moisture management must be constantly considered during install. Even if installed properly, due to environmental exposure some products may experience moisture cycling, which can lead to paint failure or additional maintenance.

Aesthetics: Manmade siding products have attempted to mimic the look of historical wood profiles, with varying degrees of success. Many are limited in their profile offerings. They may have eased edges, or lack the fit and finish of classic wood siding.

To address demand for lower-maintenance, longer-lasting siding with improved aesthetics, vinyl manufacturers have introduced beaded. shake. and other profiles.

Fiber cement manufacturers have developed thicker and more ornate offerings to attempt to mimic wood.

New materials have also been introduced. Poly-ash represents a category of siding and trim that offers a

balance of performance and the looks customers are demanding.

Boral is pioneering this category with its TruExterior Siding Craftsman Collection, making available an array of full-thickness profiles based on regional needs and a long history of architecturally prefened styles, including shiplap, v-rustic, channel, channel bevel, and cove/Dutch lap. Along with a full offering of profiles, poly-ash siding products have desirable low maintenance traits and a simole installation message boasting superior workability, durability and dimensional stability.

Adding to the appeal of poly-ash siding is its ease of install and being suitable for use at grade and other moisture-prone areas. Installation with traditional woodworking tools and common field practices will not affect or void warranties. allowing contractors to continue working with their tools and shortening the learning curve for proper application.

- Tom Zimmerman is direc.tor of sales & marketing for Boral's Light Building Products Division.

Galled back to the fold

ffPM BuILotNc SupplY has been lloperating in Hawaii since 1921, when it started as Hawaii Planing Mill, focused on re-sawing lumber from the mainland amid the palms and sun of Paradise. At least, that's how tourists. in their leis and aloha shirts, view this ocean-bound outpost of the U.S.A. If you're thinking of running a business here, however, take off those rose-colored sunglasses for a squint behind the sand and surf.

"lt's a heavy financial burden to run a large-product-based business 2,000 miles from their source," testifies Jason Fujimoto, senior v.p. and c.o.o. of the company founded by his forbears five generations back. "There are logistical complexities to being located in the middle of the Pacific Ocean. Shipping adds 307o to 4OVo to the cost of materials" for the company's full-service yards.

And no such thing as just in timethink six to eight weeks out for delivery of those 2x4s you can never, ever be without. Oh, and there's that rainforest climate to deal with: mold and mildew, to say nothing of the two devastating tsunamis that leveled the company in the past (and the takeover by the U.S. military during World War II.) Plus, no built-in labor force. "It's very hard to find good employees with the limited population base," Jason acknowledges.

Then he asks me: "Ever hear of

bonding?" He doesn't mean kumbaYa around the campfire. He's referring to the challenging, only-in-Hawaii phenomenon which dictates, he explains, that all houses must offer bond-a guarantee to the bank-that they'll be completed to spec, as insurance for a loan. "It's a little wrinkle here in Hawaii that can be a huge risk component. So, we work with banks to qualify our contractors: estimate. quole. schedule, change orders. We act as their administrative support. And

HPM's process, compared with that of other players, is the most streamlined and customer-friendly"-a huge plus in doing business.

"Also"-as if he needed yet another challenge-"each of the islands is its own entity," meaning added transportation costs between HPM's locations, and no quick subbing for each other if anything's out of stock. Since a store must maintain at least a month's supply of Product on hand, factor in a fee for inventory storage"much higher than on the mainland."

So then. what the heck is Jason doing in Hawaii, anywaY?-a Young man with a degree in corPorate finance and strategic management from the famed Wharton School of Business at the U of PennsYlvania, who worked as an investment banker for J.P. Morgan in Manhattan.

It isn't guilt. Nor is it family pressure. "I grew up immersed in everything HPM, exposed to many different family stories. But there was never an expectation as to Performance, no pressure. It was just that, at some point, I wanted something different from the Wall Street world-something entrepreneurial, more fulfilling. So in 2004,I decided to come back for one year. I wrote a contract with mY father to help HPM improve its business-process mapping. I started with the purchasing grouP, the suPPlY chain, and helped build a whole new model that would provide visibility so we could plan prices ahead. At 2,000 miles from the source, You deal with lead time. So I helped build a software

PACKAGE HOME program allows HPM to get in on the ground floor of prolects, starting with choosing and modifying the home plan.

program to streamline the process."

Well, 2004 went away l0 years ago, but Jason didn't. Despite his "one year and out" mandate, he got hooked, that's all there's to it. He made himself instrumental in developing new product offerings, such as steel framing components, concrete accessories, and asphalt shingles, to complement HPM's manufacturing operations that include metal roofing, trusses, wall panels, and door-hanging plants. He re-thought the existing door operation to cut shipping costs. "Instead of bringing them in complete, we bring in raw slabs, which stack up easier to fill a [ship] container." And now, concrete? "This way, we can get in the door with foundations, too. We had the opportunity of hiring a very, very strong salesperson who proposed a business plan to build the category. We looked at the numbers and went ahead. And we've had verv nice srowth from it."

understand what goes on day to day. I explain the direction the company is taking, why we do things, and how it contributes to the bottom line. Because the company is an ESOP, it drives the message home-that our longtime success hinges on our employees."

That employee count fluctuated during the Great Recession, which hit Hawaii especially hard. HPM employed a staff of 400 in 2006, but winnowed to a current 260 to ride out the storm. "We reduced the workforce. especially in the manufacturing area. But also, we used the recession as an opportunity to expand geographically. In 2009, we greenfielded it on Oahu, when the price became very affordable, and in 201 I acquired a yard in Kauai."

And sales, which had taken a hit, bounced back nicely. Very nicely. In 2006, HPM boasted $l3l million in revenue; the number fell to $60 million in 2010. But for rhe past three years, it's experienced double-digit growth, and in2013 was up lJVo over the (very good) yearbefore.

No accident. Jason pushed the pedal to the metal. "I initiated my succession plan. My father [HPM's c.e.o.] supported me in building my own team. My dad's executive management team was maxing out. I had the opportunity"-thank you, recession-"to bring in people from the states: from Parr, from Stock. I looked for hires who were in line with our values-honesty, service."

Plus, with the panels, doors, trusses and roofing, HPM now offers one-stop shopping for building a home.

Actually, HPM has been in the one-stop trade for decades. Twenty-five years ago, it launched its package home program, aimed at the low- to-midscale home buyer. "The benefits it provides a home buyer are, we hand-hold the customer all the way, starting with choosing a floor plan, and maybe modifying it. We provide them with a bid, and bid it out to some of our select contractors [for the client to choose betweenl. We walk them through the permitting, all the different steps, yet there's no architect's fee to pay." HPM's business-807o pro and primarily residential construction-covers everything from those packaged starter homes to multi-million mansions on the Gold Coast, as well as "large developments as they come up."

Why do contractors gravitate to HPM rather than the competition? (Big boxes and independents dot the landscape.) It starts with relationships, according to Jason. "We have a strong outside sales force, who make the customer feel like part of the family. We go above and beyond, partnering with them to see that job goes very smoothly. We've helped them leverage technology by introducing them to computer systems like BisTrack, which offers online proof of delivery and lets them see their history with us online, which helps them plan their next job. We ensure that our staff is well-trained and ahead of the curve."

That involves constant staff training, of course, and again Jason has taken the lead. "My management style? It's all about communication. I spend time in all the branches to

Also vital: people with flexibility, open to adapt to Hawaii, with deep bench experience and skills to contribute. "I brought in additional team members in manufacturing and distributing to enhance productivity by adding incentives. We positioned ourselves as a company offering great service, while operating with fewer resources than before. For instance, in the sales organization, they were no longer just order-takers, but sales-driven." To retain those hard-to-find employees on the islands, Jason realizes that a long-term strategy is imperative. So HPM instituted a training program to help build an internal career path, planned to nurture local talent rather than hiring from outside.

Fast-forward to the current store-enhancement project. "Now that we're in a growth mode again, we're focusing on the customer experience and looking at every touch point as to 'What experience are they receiving?"' The first project was a major renovation of the Kona store-"a warehouse-type model when it was first built, and l00%o profocused. Back then, it was the first tenant in a field of grass and rocks. Now, it's the center of a major retail center. We needed to make some changes so that, for retail shoppers, it would be more inviting, with better presentation in the interior. We redesigned the contractor section, too." Next up: stores in Hilo and Waimea.

So, 10 years after his "one year," Jason is repositioning the family company to continue to lead with the times. And he admits it: he's here for the long run. "I really enjoy the family roots, immersing myself in the company. I like helping the employees. And I really enjoy getting us involved in the community, participating in associations. It's part of our identity, to be a core part of the local scene." His kids are 6 and 3: a sixth generation in training?

Carla Waldemar cwaldemar@comcast.net

BIG KAHUNAS at HPM: senior v.p. Jason Fujimoto, chairman "Bobby" Fujimoto, and presidenVc.e.o. Mike Fujimoto

By Bethany West, Business Manager, Capital Lumber, and Director, North American Wholesale Lumtrer Association

How can you compete with Amazon?

fN neceur YEARS. we've seen many Ibrick-and-mortar bookstores, office supply stores, and music stores either drastically change their business model or become obsolete in the face of online retailing.

Amazon.com has become so dominant in the e-commerce space that the term "Amazon effect" has become synonymous with the heightened expectations consumers have developed as a result of their shopping experience with Amazon. The customer is used to selecting from a broad range of goods and services, and having purchases delivered to them quickly-all at a low price. The ease of "checking out" in a few seconds, and even on your mobile device, has made shopping on Amazon very convenient.

In a recent article titled "Amazon's Wholesale Slaughter: Jeff Bezos' $S-Trillion B2B Bet," Forbes profiled AmazonSupply.com, an ecommerce site launched in 2012 focused on the wholesale and distribution market. In the last two years, the number of products available for purchase there has grown from 500,000 to more than 2.2 million.

These products include tools, home improvement materials, and janitorial supplies. (www.forbes.com/sites/ clareoconnor I 20 | 4 I 05 lOl /amazonswholesale-slaughter-jeff-bezos-8-trillion-b2b-bet/)

The article argues that because the business-to-business (B28) world is

likely to be more profitable for Amazon than its "sexier" services. like TV shows and drone delivery, and it has great capital to leverage, it poses a significant threat to the $8trillion distribution industry. For America's 35,000 smaller distributors, in particular, Amazon can out-

compete in the areas of online inventory. fulfillment and logistics. customer data. and. of course. price.

There is a great deal of specula- tion and disagreement about AmazonSupply's potential impact, particularly with hazardous materials. products that require on-site support or installation, and similar goods. It's worth noting that transporting lumber and building products to construction sites doesn't usually fall into those categories, but hasn't been ruled out by Amazon's vice president of B2B and AmazonSupply, Prentis Wilson. For this reason alone, the article has sparked great debate at my company. I'm sure we're not the only ones interested in this issue.

According to a 2013 survey by Modern Distribution Management and Baird, only l%o of independent distributors and manufacturers had seen an impact on their business from AmazonSupply at that time, and 93Vo indicated no impact one year ago. More distributors than manufacturers cited an impact, and those in plumbing, HVAC and janitorial and sanitation were feeling it more so than companies in roofing and building materials. (www.mdm. com/blogs/ I -management-strategy/ post/ 30 1 32-management-strategy20 | 3 -04- I 9-survey-amazonsupplysi mpact-on -di stributors- low- butcuriosity-still-high)

Multichannel Merchant, a publication serving catalog companies and online merchants including wholesale/distributors, inquired about Amazon's impact on those businesses in its recent MCM Outlook 2014 survey. While it is encouraging to see that 29Vo of those respondents also indicated no business impact from Amazon this year, 367o cited an effect on their shipping offers. They feel more pressure to offer free ship-

North American Wholesale Lumber Association

ping and ship orders faster. (multichannelmerchant.com/opsandful fillment/warehou se/amazon-effect-overrated-080420141)

At a 201 2 conference, W.W. Grainger. the distribution powerhouse cited in the Forbes article as a company that can prevent wholesale slaughter by AmazonSupply, indicated that Amazon does pose a threat to its business. Ron Jadin, senior vice president and c.f.o., indicated that its smaller customers are at risk because they do behave more like a consumer, but those customers only make up about 5Vo of its business. Jadin indicated that its multichannel model, employing a combination of online sales, a sales force, branches and mobile sales, provide it with relevancy Amazon can't match. (www.mdm.com/blogs/ I -management-strategy I postl 2999 4-management-strategy -2O 1 3 -03 - 1 9 -grai ngerstake-on-amazon-the-latest-on-thedistributors-growth-drivers)

National Association of Wholesaler-Distributors president Dirk Van Dongen reminds us that distributors have proven their resiliency in the face of other challenges and can adapt to retain their edge in the face of this one as well. Proactively embracing technology and online sales, expanding into new markets, strengthening brand recognition and delivering truly valuable products and services are all ways to retain relevancy in this new reality. (www.tedmag.com/news/features/ naw-president-dirk-van-dongentalks-amazonsupply-threat-with-tedmagazine.aspx)

It's also important to remember the role relationships play in distinguishing us from competitorswhether that's in the online world or in our local markets. We bring an expertise and depth of knowledge that Amazon can't match. The more

we can establish ourselves as trusted advisors, not simply a vendor, the greater our bond with customers becomes and the less we have to compete on price and other factors that are more difficult for us to control. Continuing to prove our value in the supply chain is imperative, and nothing new to us in the changing economy. Even if AmazonSupply doesn't expand into the lumber industry, we should also make sure that we keep the "Amazon Effect" in mind when we interact with our customers and our suppliers. If speed and selection are the expectation, we have to respond accordingly as well.

If you're interested in hearing other lumber manufacturers' and wholesalers' perspectives on this topic and others that are impacting our industry, join me and other NAWLA members at the NAWLA 2014 Traders Market, Nov. 12-14 at the Hyatt Regency Chicago. You'll also have the chance to build relationships with current and prospective business partners from across North America-in one convenient location. Register now or see who's attending at www.nawlatradersmarket.com.

And, for those already affiliated with NAWLA, I encourage you to join or start a l0 Group so that you can continue to build relationships and host conversations with peers about trends and challenges that face lumber suppliers and wholesalers. While these groups meet in-person at NAWLA events such as the Traders Market and Leadership Summit, you can reach out to another l0 Group member whenever you need his or her counsel.

- Bethany West is business manager at Capital Lumber, Healdsburg, Ca., and a director of the North American Wholesa I e Lu mber Assoc iat ion.

Running out of you

[lvenv (LUMBER) salesperson in North America is mak.U.rins 80Vo of their money from fewer than l0 accounts, -uny Tu. fewer. (There are exceptions. but they are just that, exceptions.)

Pareto, the father of the 80/20 rule, says that 807o of our gains/progress will come from 20Vo of our activities. This holds true for fishing, hunting, working accounts, and even our friends! We derive SOVo of our pleasure from 2OVo of the people we associate with.

Sales example: A salesperson is working 30 accounts and is generating $30900 in profit per month.

30 Accounts = $30K

207o of 30 accounts = 6

80Vo of $30K = $24K

$24K + 6 accounts = $4K account value per month

$6K + 24 accounts = $250 account value per month

In this common example, the top six accounts are 16 times more valuable than the bottom 24 ($4,000 + $250 = I 6).

Seller Value

Life is a mirror, so doing the math on customer value also does the math on seller value. In our example above, the seller is bringing a lot of value to her first six accounts and very little to the rest. If we have been working these accounts for over six months, we are not a good fit with these accounts and, statistically speaking, never will be.

So why do we hang onto these bottom 24 accounts if they are so much less profitable? Some are new. Building trust takes time, so some of these accounts "below the line" will be worth keeping and working. But the older, non-producing accounts-why do we hang on to them?

Because most of us remember how hard it was to build our current account box, even if it isn't perfect. ("They might be a C- account, but they're My C- account!" )

We also "save accounts for a rainy day." We hold onto these barely profitable relationships because we think that if someday we lose one of our good accounts, we will already have a relationship with the accounts that can move up and replace them.

Prospecting is arguably the most difficult thing we do as salespeople. So many of us would rather try to "restart" a known C- than go out and find another A+ account.

This is a mistake! Relationships and their mindsets are established early. ("Love at first sight" comes to mind.) ff

we do not have an A or B relationship with an account in six months of working with them, we never will. lf we work against this rule, we will lose. There will be exceptions, but we cannot ensure growth (or put our kids through college) working on exceptions.

Itm Busy

"l'm busy" is an excuse. We have a salesperson generating $l7K in profit per month. He ls busy. We have another salesperson generating $50K in profit per month. She is busy, too. They are both busy, so what is the difference? Busy doing what? That's the difference.

The 17K salesperson has some good accounts, but on average, his total account box is a B-. His 30 accounts need service, quotes, etc. This seller "is busy" doing the wrong things. He is servicing accounts that are treating him as a second class citizen. They give him just enough business to "keep the main supplier honest" and use him for market information, but never will make him a real partner in busiNESS.

The 50K salesperson has more good accounts and, more importantly, fewer bad accounts. How does that happen? The 50K seller will not stand for being a second class supplierl She will try to make the relationship work, but if it isn't working, she moves on. She prospects for new and better accounts.

If you are an above-average or exceptional salesperson, you are going to "run out of you" before you run out of good accounts! Because the lTKs hang onto C- relationships, eventually their time is taken up servicing (not selling) them. They don't have time to prospect for better customers !

Hard work, time management, and salesmanship charms are important; we must develop these skills. To move to the next level, we must also learn to evaluate and manage our accounts.

James Olsen Reality Sales Training (so3) s44-3s72 james @realitysalestraining.com

Roseburg Hustles to Repair Weed Veneer Millafter Fire

Roseburg Forest Products, Roseburg, Or., is repairing its fire-damaged veneer mill in Weed, Ca., anticipating to be back on line by Thanksgiving.

In the interim, Roseburg has moved Weed veneer inventory and logs to its plywood operations in Oregon. Sixty of Weed's 135 employees were also

r SUPPIIER Briefs

D.R. Johnson Lumber Co. restarted its Riddle, Or., sawmillOct.6. The facility had been idled since early 2012.

F.H. Stoltze Land & Lumber cited log supply in indefinitely cutting back production hours from B0 to 60 at its Columbia Falls, Mt., sawmill, starting Sept. 29.

Boral TruExterior's new Trim 2x profile and Beadboard have been certified for inclusion in the WildlandUrban Interface Products Listing by the California Building Commission

GreenWood Resources,

Emeryville, Ca., received its 7th FSC project certification for using sustainable materials in its recent headquarters office expansion.

Henry Co., rt Segundo, Ca, has purchased roof coatings maker West Development Group, LaGrange, oh.

offered positions in Oregon, manning extra shifts to keep up with production needs and existing order files.

The Sept. 15 Boles wildfire spared the main processing area and facility, but significantly damaged several outbuildings.

The mill complex dates back to Siskiyou Lumber and 1897. Long-Bell Lumber took it over in the 1920s, selling it to International Paper in the 1950s. Roseburg bought it in 1982 and converted it to veneer production.

N.M. Store Switches lt Up Trader Horn's True Value,

Portales, N.M., is converting after 30 years to an Ace Hardware & Home Center.

The changeover includes replacing about 30Vo of its SKUs, adding 9,000 sq. ft. of retail space for a new flooring center and dedicated paint studio, and installing new energy-efficient air conditioning, lighting and insulation.

The store remains open during construction, which is expected to be finishing up early next month, in advance of a Dec. 1 grand opening.

Arizona Mill Returns to Life

Newpac Fibre, LLC has started up a Williams. Az.. sawmill that has been shuttered since 1995.

Sawn boards will be used for paneling, doors, flooring and other building materials. Residual material will go into mulch and renewable energy fuels.

The mill, which restarted Sept. 15, presently employs 10, but hopes to increase its workforce to 50 by next year.

Ply Gem Gompletes Simonton Acquisition

Ply Gem Industries, Cary, N.C., has finalized the acquisition of Simonton Windows, Columbus, Oh., from Fortune Brands Home & Security.

As parr of the $13o-million deal, Ply Gem has also acquired all assets of SimEx, a vinyl and PVC foam extrusion operation in West Virginia.

Ply Gem will operate Simonton as a stand-alone business unit. similar to the way it runs its existing Siding and Window groups.

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r DEALER Briefs

Gold Beach Lumber, Gotd Beach, Or., held a grand opening Sept. 6 at its new store in Port Orford, Or.at the former home of McNair True Value Hardware.

Parker Lumber East, gotnett, Wa., auctioned off its equipment. The vard closed Mav 27,16 months after it was purchased'uy Dunn Lumber.

Ace Home Center, Libby, td., is adding 9,000 sq. ft., after absorbing a neighboring storefront.

ABG Supply added a branch in Nampa, ld. (Robb Gardener, mgr.).

Ace Hardware, Gridley, ca., has installed a rooftop solar array that will meet 70% of its elechical needs.

Trifecta Home Center, Sidney, Mt., opened an in-store Sears Hometown Store.

Wilco relocated its 3,000-sq. ft. Bend, Or., location Sept. 9 to a new 35,000-sq. building that will include a True Value hardware & oaint center.

Simpson Lumber Up for Sale

Simpson Lumber Co., Tacoma, Wa., has enlisted a financial advisor to explore the possible sale of the firm.

Assets include mills in Tacoma, Longview and Shelton, Wa.; Meldrim, Ga.; and Georgetown, S.C.

Not up for sale are its Simpson Door Co. division in McCleary, Wa., or any timberlands, which eight years ago were spun off into Green Diamond Resources Co., Seattle, Wa.

Worker Killed By Machinery

A millworker at Freres Lumber, Mill City, Or., was crushed to death when a wood press started up while he was repairing the equipment.

Bryan Dodge, 33, died on the scene Sept. 17.

G-P Sorts Out Cleaning Bill

Twelve years after Georgia-Pacific boarded up its sawmill complex in Fort Bragg, Ca., four lawsuits have finally been resolved concerning who will foot the bill for cleaning up the site.

Cleanupand litigationhave been ongoing for two years.

The city of Fort Bragg agreed to drop its charges against G-P, if G-P

dropped its counterclaim against the city. Weeks before, OfficeMax (successor to former mill owner Boise Cascade and Union Lumber Co.) had agreed to a multimillion dollar settlement of another suit brought by G-P.

And, a month before that, Louisiana-Pacific (which operated an on-site plywood mill for three years) agreed to pay G-P $1.5 million to help with the cleanup.

H.B. Fuller Buys ProSpec

H.B. Fuller Co., St. Paul, Mn., has acquired ProSpec Construction Products from Bonsal American, Charlotte, N.C.

The deal includes three plants that expand Fuller's production reach into Texas (Eagle Lake) and California (La Mirada). ProSpec, which makes tile/stone installation products, will be folded into Fuller's North America Construction Products segment.

According to Fuller c.e.o. Jim Owens, "We will be able to better serve our big box customers with locations in the West and Southwest, broaden our product line, reduce our manufacturing and freight costs, and increase our presence with customers and key distributors in the Southeast."

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Preserve@ACff improves the durability of exterior wood for sustainable building; field-tested & proven-to-last.

r MOVERS & Shakers

Bill Jones, ex-McFarland Cascade, has joined Allweather Wood, Washougal, Wa., as v.p. of purchasing.

Mike Baker, ex-Universal Forest Products and Bluelinx, has joined the sales team at Boise Cascade Building Materials Distribution, Lathrop, Ca., serving as product mgr. and inside sales.

Larry Blagrave retired Oct. I after 50 years in the industry, the last five in sales for Yuba River Moulding & Millwork, Yuba City, Ca.

Robin Walton, ex-Swanson Group, has been named senior business analyst at Timber Products Co., Eugene, Or.

Phil Steklenski, ex-Woodgrain Millwork, has been named v.p. and general mgr. of Simpson Door Co., McCleary, Wa., succeeding Stacie Conkle, who is retiring after 28 years with the company.

Austin Johnson is a new sales & marketing rep at Sierra Forest Products, Kent, Wa.

Mike Wagner is now purchasing supervisor at BMC, Las Vegas, Nv.

Earl Downing has joined DMSi Software, Omaha, Ne., as senior account mgr. for sales in the western U.S. and the LBM market nationwide.

David Kruss has retired after nine years as territory mgr. with Sierra Pacific Windows, Fremont, Ca.

Mike Peetz, ex-Ganahl Lumber, is a new Orange County, Ca.-based sales rep for Western Window Systems, Phoenix, Az.

Julie Rambo is a new sales assistant at Idaho Pacific Lumber Co.. Boise, Id.

Pete Skram, ex-Custom Building Products, is now Midwest regional sales mgr. for Protecto Wrap Co., Denver, Co.

Jerry Gibson, ex-Olympic Wholesale Building Supply, is now Seattle, Wa.-based Northwest region sales rep for Max USA Corp.

Matt Wenner is new to sales of imported plywood at Far East American, Los Angeles, Ca.

John Turland, ex-Greenwood Resources, is new to RISI, as senior international timber economist.

Tamara Paulson, ex-Sliding Door Co., is new to Los Angeles, Ca., area sales of Pella Windows & Doors.

Jason Clay, ex-Allegheny Wood Products, has joined USNR, Woodland, Wa., handling machinery sales in the Northeast.

Suzanne Hearn has retired after eight years as v.p.-sales & marketing for Forest2Market, Charlotte, N.C. Tracy Leslie is new as director, forest biomaterials & sustainability services.

Bill Parsons, ex-Weyerhaeuser, is now national director-architectural & engineering solutions for WoodWorks. Boise.Id.

Kyle Gibbons, Weston Forest Products, Mississauga, Ont., has been promoted to mgr. of the truss lumber sales group.

John Bell, president, Bell Hardware, Klamath Falls, Or., was presented the Builders Hardware & Manufacturers Association 2013-20I4 Award of Excellence.

Jean Poole has joined the human resources department at MungusFungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Hldilon FaEtenlng systemf for Deckhg, Sldlng; andThs

Western Building Material Association has recruited consultant Bill Lee to deliver a pair of sales management seminars during its ll2th annual convention Nov. 5-7 at the Red Lion on the River, Portland, Or.

Lee will lead off with "How to Take Your Business to the Next Level" and finish the afternoon with "Coaching Your Salespeople on Dealing with Price Objections."

Also on the agenda are a presentation by Jared Ogden, of Navy SEAL Team One; economic forecast by Dr. Bill Conerly; all-industry reception; tabletop show; silent and live auctions; and presidents' dinner.

WBMA also is conducting a new building material marketing course Oct.2l-22 at its Kincaid Learning Center in Olympia, Wa.

The two-day workshop is designed to provide dealers' employees with practical selling skills, product knowledge, residential construction basics, building material math, and industry terminology.

West Coast Lumber & Building Material Association is preparing for its annual convention Nov. 6-7 at Miramonte Resort & Spa, Indian Wells, Ca.

Sales trainer Rick Davis will help owners "take the mysitic out of sales management," while BlueTarp c.o.o. Shawn Cunningham will share how to build stronger cash flow, maintain relationships with customers, and

institute best practices for managing credit programs.

Other highlights include an industry report by Craig Webb, tabletop expo, and golf at the Indian Wells Golf Resort.

North American Building Material Distribution Association will hold its upcoming annual convention jointly with National Association of Floor Covering Distributors Nov. 18-20 in Dallas, Tx.

National Lumber & Building Material Dealers Association will

install J.D. Saunders, Economy Lumber, Campbell, Ca., as 2015 chair at its annual industry summit Oct. 2830 at the Hard Rock Hotel in San Diego, Ca. A reception in his honor will be held Oct. 28.

World Forestry Center inducted the late Charles C. Patrick, who founded Patrick Lumber Co.. Portland. Or., in 1915, into its prestigious Forestry Leadership Hall.

North American Retail Hardware Association will spend $4 million to purchase and renovate a threestory,30,000-sq. ft. building in downtown Indianapolis, In., to serve as its new national headquarters.

Light Rail

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Aggressive Duct Tape

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High lmpact Masonry Bits

Irwin's Impact Performance Series Tapcon installation system combines a drill bit and drill/drive sleeve to make installation faster and easier. The bits have a built-in hex collar stop for drilling the perfect hole depth for concrete screws.

Designed with three different lengths across two different diameters, the bits match up with all standard screw diameters and lengths. Engineered with a pressed carbide tip, with aggressive cutting angles, their one-piece construction withstands higher torque loads than quick-change bits with a two-piece deslgn. The sleeve slides over and locks on to the drill bit's hex collar and accepts standard or impact ll4" hex shank fastener drive bits for driving screws and completing the job.

T IRWIN.COM

/800\ 464-1946

Seals the Openings

OSI's new QUAD Winclou & I)our Svstem sinrplif'ics installation ot windons anrl tlools. while rcclucine thc rrsk ol cncrt,r'loss and u trter pcnetration. 'l'hc svstem includcs QUAD MAX tltlce-in-onc inlcriot'. e\terior ancl bcclding scalant: OSI Br-rtyl Flash Tape: ancl QLIAI) window'/cloor instal lation lirunt.

I oSITOUGH.CoM (800)6r-1-7767

Lighted Loads

The Lightccl Tool Ba-c fronr Klein Tools lcirtLlfcs a twist on/ tu ist off LED lighr rhat can be positioncd to illLrnrinatc insiclc thc bag rlr tl-rc worksllrcc.

Thc ba-e has .l I pockcts for slrtr'11g1'. lr hlicltt {)tint-!e irtlcrior' to l'incl tools fastcr. uncl clLrrable nrolclccl [rase. that protccts Irom thc clcnrcnts.

Thc uork li-sht. which is sold scparatclv. has a swivcl hook lnd nraqnct lirl hands ficc r-rsc.

T KLEINTOOLS.CON,I [J(X)) 66-]-3667

Double-Hung Tilt-lns

Wojan Wintlorr & Door has lclcled a clor-rblc-hLrng window to il: e 'r'nnlcle ilrl lrlrrrrrinum u in clor', line.

Thc Ml-500 scrics tilt-in is a -l I/4" fiante cus(orl br-rilt cloublc-hun-u that carrics a CW30

AAMA latin-g. ancl lcatrrrcs versatilc dual accessorv chunnels itttrl a pour ancl dehlidge polr urclhane thcrntal blcak.

T WO.IAN.COM

(rJ(x)) 632-9827

Pivot Screwdriver

Black+Decker's new 4V MAX* lithium pivot screwdriver features a handle that rotates 90' to allow for either pistol-grip or inline orientations, making it easy to use in tight spaces.

Its over-molded handle and ergonomic finger grip follows the contours on the hand, increasing comfort.

An included micro USB wall charger supplies the screwdriver with a 400-milliamp charge rate-up to four times that of standard chargers. Its lithium ion battery will hold a charge for up to l8 months.

The tool comes equipped with a bit holder and an accessory kit that includes bits, screws, nails, and even hooks and wire for hanging picture frames'

I BLACKANDDECKER.COM

(800) 556-6696

Worksite Wi-Fi

A durable jobsite radio that wirelessly streams music from a Bluetooth-enabled smart phone is new from Porter-Cable.

Run on lithium ion batteries, the 20V MAX* Radio features Bluetooth compatibility, two high performance speakers, four operation modes, AM/FM tuner' auxiliary, and 12 presets.

Its full roll cage helps to protect it from drops and falling objects, while the handle and hang loops allow for the radio to be easily hung from rafters or a ladder, or transported to another jobsite.

I PORTERCABLE.COM

(888) 848-517s

Celebrating 46 years of fine hardwood manulacture and distribution

For the finest service in the industry, call on Swaner for a steady, reliable source of quality hardwood products at competitive prices.

. Hardwood Lumber/S4S

.Hardwood Plywood

Custom Hardwood Moulding

Custom Hardwood Flooring

Ridge Vent on a Roll

Flex Vent Soft Roll, a lightweight, low-profile rolled ridge vent that will simplify venting for roofing contractors, is new from Quarrix Building Products. Manufactured from non-woven and non-wicking polyester matting, the product reportedly is easy to install with no complicated fitting, wrapping or connectors.

It is ideal for venting warm, moist attic air out, while preventing insects, birds, bats and dust from getting in.

Rolls are 10" wide by 20' long and include coil nails.

I QUARRTX.COM

(800) 438-2920

Gordless Right Angle Drill

Milwaukee Tool has updated its Hole Hawg cordless right angle drill to weigh less, while delivering faster drilling-over 150 718" holes per charge.

The M18 Fuel Hole Hawg drills with augers up to 1-114" and self-feed bits up to 2".

Upgrades include a long-lasting PowerState brushless motor, Redlithium XC4.0 battery pack, and Redlink Plus intelligence hardware and software.

T MILWAUKEETOOL.COM

(800) 729-3878

REEL3HH#,:dB

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

Fax 714-63O-3190

(7141632-1988 . (8OO) 675-REEL

3518 ChicagoAve., Riverside, Ca. 925OT (95r) 781-0564

www.reellumber.com

Thermo-Treated in the USA

Reportedly the first domestically produced thermally modified hardwood has been introduced by Wahoo Decks and Rockwood Timber Group.

Rockwood lumber is thermally treated in Macon, Ga., eliminating international shipping costs. The process increases weather durability by up to 25 years; improves dimensional stability, cutting shrinkage and swelling by five to l5 times; and decreases the risk of mold, mildew, rot and insect infestation.

With a rich, deep brown finish and enhanced, accented grain structure, the wood is ideal for decks, docks, paneling, siding, moulding, flooring, doors and roofing. Species include white ash, elm, cypress, soft maple, sap gum, and poplar.

I ROCKWOODTIMBERGROUP.COM

(844\ 138-7349

A Jlt Reel Lumber Senrice, we supply domestic and forelgn hardwoods. Our products and services lnclude:

. Hardwood Lumber & Pine

. Hardwood Plyrrood & Veneers

. llllelamlne Plywood

Hardwood Moulding (alder, cherr5f, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech)

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

. Woodworklng Accessorles (appliques, ornaments, butcher blocks, eorbels, etc.)

llloodworking Supplies (deft flnishes, color putty, adhesives, etc.)

Otrt products are widely used in

interlor finish carlrentry, fui:niture, cabinetry and hundreds of industrial and manufacturlng applications. IVe stock a complete line of complementary products to complete vtrtually any woodworking or millwork proJect.

UNIVERSAL Forest Products, Riverside, Ca., hosted a golf tournament forcustomers and suppliers Sept. 16 in Temecula, Ca. [1] Joe McGuire, Donn Gunvalson, Randall Richards, Jason Croy. [2] Rich Enroth, Gary Crowel, Dan Croker, Tony Campbell. [3] Evan Duran, Hiram Duran, Fernando Duran, Gerarvo Sosa. [4] John Britt, Doug Dawson, David Tasqart, Jack Nansel. [5] Steve Mays, Ernie Noguera. [6] Mike & Debbie Qu-elambra, Hank Hornsveld, Don Kavert. [7] Joe LeBeau, Ryan Skadel'

John Skadel, Lito Pajaro. [8] Andrew Garczewski, Jon Fanell, Dan Lucero, Marty Lake. [9] Luis Lotteroth, Jorge Fimbres, J-effrey Jensen, Gabriel Garcia de Leon. [10] Dara Kargari, Jared Hillier, Skyler Warner, Angel Bautista. [11] Dale Brass, Kevin Hgmlqg, Jerry Toomey,_Greg Seirato. 112l Ed Reyes, Walter Medina. [13] Fred Buschbaum, Bruce Akana. F4i Frank-Gonzalez, Mike Nicholson, William Barr, Scott Middaugh. [i5] Neresh Narine, Craig Evans. (More photos on next page)

UFPI'S ANNUAL golf event at the Temecula Creek Inn Golf Course (continued fyom prqvious pqge): [1] Lisa O'Bannon, Steve Mitchell, Helen Bromley. [2] John Seely, Monika Bartko, John Shutz. [3] Jennifer Burford, Alan Oakds,-Brooke Tribbett [4J Howard Linden, Filo Cabrero, David Soule, Phil Santos. [5] Jim Kaminski, David Hines, Phil Robertson, Mark Tackett. [6] Jeff Burian, Curtis Achtemeier, Eddie Montiel, Sean O'Bannon. [7] Stan Themea, Derrick Armstrong, Louie Segura, Jerry McNeilly. [8] Danny Parks, Felix Martinez. [9] John Evans, Lonnie King. [10] Marwan Salem, Travis Pritchett. [11]Andrew Bromley, Peler Bonilla. [12] George Godoy, Ruben Cervantes. [13] Jimmie Alcavez Jr., Jimmie Alcavez Sr., Jesse Rubio, Hector Leiva.

Doweled Lodgepolepine posts and rails. 1 112" to 12" Diameter in Stock. Large diameters & long lengths.

Aaron Jones, 92, founder of Seneca Sawmill Co., Eugene, Or., died Sept. 22.

After serving in World War II, he graduated from the University of Oregon and entered the lumber business-setting chokers in the woods, working at his father-in-law Laurence Bauman's planing mill, and in sales.

In 1953, Jones opened Seneca Sawmill Co., which would grow into the Seneca Family of Companies, made up of four mills in Eugene and Noti, Or.; timberlands, with Seneca Jones Timber Co. tree farm offices in Eugene and Roseburg, Or.; and a wood-fired electricity plant.

Despite no formal engineering training, he designed and patented more than 25 sawmill technologies and machinery, helping to maximize wood recovery.

Norman L. Matthews, 84, longtime Central Valley lumberman, died Sept. 2.

During his 5O-year career, he worked for Tarter, Webster & Johnson, Georgia Pacific, and Big Creek. In 1978, he opened his own brokerage, Union City Lumber, Union City, Ca., before retiring in the mid-1990s.

He was also an inventor, creating the Uni-Splitter (to split pallets of lumber) in the early 1960s, as well as a wood benderboard for flower beds.

Jerald "Jerry" Kramlich, 66, manager of High Sierra Lumber,

Tulare, Ca., died Sept. 3.

After serving in the Army in Vietnam until 1969,hejoined his father at C&G Lumber, Rugby, Ca. In 1985, he and his father purchased the business and renamed it K&K Lumber.

In January 1986, he became manager of Copeland Lumber, Exeter, Ca., and stayed on when it was acquired by Keith Brown Building Materials in 2001. He then managed High Siena ftom20o2to2014.

LaVerl Benjamin ttBen" Leany, 80, president of Leany Trading Co., Chico, Ca., died of cancer Sept. 2.

A U.S. Navy veteran, he began his career with Weyerhaeuser before moving to Chico in 1976 and joining Western Woods Inc. He opened his own brokerage office in 1996.

Richard Earl "Dick" Owen, 86, retired Oregon lumberman, died Sept. 7 in Albany, Or.

He founded Dick Owen Lumber in 1950, selling it to Seneca Sawmill in 1957. After operating Hardwoods Inc he became a professional engineer in 1963, spending 23 years with Willamette Industries in Oregon, Arkansas, Louisiana and South Carolina. In 1991, he started DO Engineering Services, retiring in 2001.

Harry ttRantt Ransom, 70,45year hardware salesman at McGuckin Hardware, Boulder, Co., died of cancer Aug.27.

He began his career with Johansen Hardware, Boulder, before becoming McGuckin's fifth hire in 1969.

Ronald Louis ttRon" Marchek, 74, retired Pacific Northwest lumber broker, died of cancer Aug. 30.

His 54-year career as an international lumber broker included 20 years at North Pacific, Portland, Or.

Joseph LaMoine Jenson, 79, owner of Jenson Lumber, Draper, Ut., died of colon cancer Sept. 2.

He founded the firm in 1978, but cancer eventually forced him to abandon day-to-day operations.

George A. Lyon Jr., 87, ex-assistant manager for Foxworth Galbriath, Silver City, N.M., died Sept. 18.

After serving in the U.S. NavY during World War II, he moved to Albuquerque and began cutting timber in the Manzano Mountains for a nearby sawmill, before getting into retail.

DATE Book

Llsfrngs are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

Black Bart Hoo.Hoo Club - Oct. 10, golf tournament & BBQ, Ukiah Valley Golf Course, Ukiah, Ca.; (707) 542-5091; www.btackbarthoohool 81 .org.

True Value Co. - Oct. 10-'12, fall market, Colorado Convention Center, Denver, Co.; (773) 695-5000; truevaluecompany.com.

Southern California Hoo-Hoo Club - Oct. 15, meeting, Los Serranos Country Club, Chino Hills, Chino, Ca.; (323) 559:19S8; www.hoohool 17.org.

Do it Best Corp. - Oct. 18.20, fall market, lndianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Association of Millwork Distributors - Oct. 19.23, annual convention, Tampa, Fl.: (727) 372-3665; www.amdweb.com.

Western Building Material Association - Oct. 21-22, building material marketing course, Olympia, Wa.; (360) 943-3054; www.wDma.0rg.

DeckExpo - Oct 22-24, Baltimore Convention Center, Baltimore, Md.; (866) 475-6495; www.deckexpo.com.

Greenbuifd Expo-; Ocl.22-24, sponsored by U.S. Green Building Council, New Orleans, La.; (800) 795-1747: www.usgbc.com.

Green Industry & Equipment Expo - Oct. 22.24, Kentucky Fair & Expo Center, Louisville, Ky.; (800) 558-8767; www.gie-expo.com.

Remodefing Show - Oct. 22-24, Baltimore Convention Center, Baltimore, Md.; (866) 475-6495; www.remodelingshow.com.

National Lumber & Building Material Dealers Association - Oct. 28-30, annual industry summit, Hard Rock Hotel, San Diego, Ca.; www.dealer.org.

West Goast Lumber & Building Material Association - Nov. 6.7, annual convention, Miramonte Resort & Spa, lndian Wells, Ca.: (800) 2664aa; www.lumberassociation.org.

Western Wood Preservers Institute - Nov, 2.5. annual meetino. Hilton Waikoloa Village, Waikoloa, Hi,; (360) 693-9956; www,wwpinstitute.org.

Tacoma-Olympia Hoo.Hoo Club - Nov. 4, meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834.

Western Building Material Association - Nov. 5-7, annual convention, Red Lion on the River, Portland, Or.; (360) 943-3054; www.wDma.0rg.

Building Industry Show - Nov. 6, annual show, Pasadena Convention Center, Pasadena, Ca.; (949) 553-9500; www.buildingindustryshow.com.

APA-The Engineered Wood Association - Nov. 8-11, annual meeting, JW Marriott San Antonio Hill Country Resort & Spa, San Antonio, Tx. ; (253) 565-6600; www.apawood.org,

Specialty Tools & Fasteners Distributors Association - Nov. g. 11, annual convention & show, Charlotte Convenlion Center, Charlotte, N. C. ; (800) 352-2981 ; www.stafda.org.

Mountain States Lumber & Building Material Dealers Association - Nov. 11, fundraising breMest, Mile High Station, Denver, Co.; (303) 793-0859; www.mslbmda.org.

Lumbermens Merchandising Corp. - Nov. 11.12, LBM expo, Philadelphia, Pa. ; (61 0) 293-7 121 ; www.lmc. net.

Black Bart Hoo.Hoo Club - Nov. 12. new member meetino. La Hacienda, Cloverdale, Ca.; (707) 252-6142; www.b[ackbarthoohool 8 1 .org.

NAWLA Traders Market - Nov. 12.14, sponsored by North American Wholesale Lumber Association, Hyatt Regency, Chicago, ll.; (S00) 527 -8258; www.nawla.org.

ACGI aCOpreserve . Bonates

D-Blaze@ Interior Fire Retardant Heat Treating tSnV 15 Comptianr Custom Drying Rail

FSC Certified scscoGoo2sl g

909-350-1214

1 55OO Valencia Ave. [Box 1O7O], Fonrana, CA 92335 Fax 909-35G9623 email - sales@fontanawholesalelumber.com www. f ontanawholesalelumber. com

Renovating and repurposirlg a beloved school building has brought increased attention-and increased sales-to a family business.

Braly Builders Supply, Palestine, Tx., opened on what was a main highway in 1932. However, as the town grew and competitors such as Lowe's moved in, the old location became less accessible. Co-owners Vicki and Stephen Braly (he's the fourth generation to run the store) started looking for a new location, but nothing clicked until the city decided to sell an unused property: the former Rusk Elementary School.

Built in 1938, the sturdy brick building surrounded by grassy fields offered a main highway location and room to grow-about 15,000 sq. ft., triple the size of Braly's original location. Another plus: the community supported the project because so many residents had fond memories of attending the school.

"People like to see an old building refurbished rather than destroyed," Vicki says. "With this building, we feel we were able to keep the old store feel in a new location."

Inside, all the trappings of a school-chalkboards, teacher cabinets, and lockers-were repurposed for displays, showcases and aisle signs. Drywall was removed to reveal structural timber beams, and worn carpeting was ripped out to uncover the beauty of the original hardwood floors. "We worked hard to preserve that old-time historical feeling we had in our original store," says Vicki. "We wanted to keep our old customers, yet attract new ones, too."

Outside, half of the grass was removed to create a large parking lot that comes right up to the door. "Easy access is key, so customers can walk right in the store," believes Vicki. The remaining grass creates a green zone in the busy location.

Even before the new store opened last fall, locals stopped by to check on the renovations, share personal school memories, and donate old school photos. Acting as honorary curator, Vicki maintains a scrapbook of the old photos and displays some on the store's attractively designed Facebook page.

"There are so many wonderful photos that I may start a 'Throwback Thursday' feature on our page," she says. "It seems like everyone has a favorite story or photo to share."

ADVERTISERS fndex I

BlueTarp [www.bluetarp.com],......,........, ""'......'26

Building-Products.com [www.building-products.com] .,..Cover lll

C&E Lumber Co. [www.lodgepolepine,com]'.'."".'....."'.".....'.'.'35 Collins [www.co11inswood.coml......,....,.,......".'..'.......',',',.Gover lV

DeckWise fwww.deckwise.coml ............,., ..'.'..".28

Fontana Wholesale Lumber ffontanawholesalelumber.coml..."3T

Huff Lumber Co.

Humboldt Redwood [www.getredwood.com] "'......"'.........'."."'...8

J.M. Thomas Forest Products [www.thomasforest'com] ".""...'.'4

Jones Wholesale Lumber [www.joneswholesale.com] ..'.""'.'...27

Keller Lumber

Kop-Coat [www.kop-coat.com] ,..........,.,. ...".'...'.'.7

Mendocino Forest Products [www.mfp.com] ........'.'."."'.'.....'.'.".8

Norman Distribution Inc. [www.normandist.com],...'......'.,.'...'.'.29

North American Wholesale Lumber Assn, [www'nawla'orS] ....'.'3

Peterman Lumber lnc. [www.petermanlumber.com] ""'....'.'...."30

Reel Lumber Service [www.reellumber.com] .'..'...'.'.".'....'."".'..33

Reliable Wholesale Lumber lnc. [www.nrli,com] ...............'....'...1 5

Roseburg Forest Products [www.roseburg'com]'.....'.'.""........'25

Simpson Strong-Tie [www.strongtie.com]...,....,.,.....'..'..."'.......'.23

Straight Line Transport [www.straight line'transport.com] ".'...37

Swaner Hardwood Co. [www.swanerhardwood.com]...'...'.....'..'32

Swanson Group Sales Co. [swansongroupinc'com] ",".".Cover ll

Universal Forest Products [www,ufpedge.com]',',.,.'.'......"'.'...'.'.5