Merchant Magazine - November 2007

Managing

editorial or advertising matter, and assumes no liability for materials turnished to it.

Sening l3 Westom Stttos, Ineludlng

Alaaka and l{awsii

(Sistet publication Buiuing Products Digest seves the East)

PUBLISHER Alan Oakes (ajoakes@aol.com)

PUBLISHER EMERITUS David Cutler EDITOR David Koenio (dkoenig@b;uibing-products.com)

ASSOCIATE EDITOR Karen Debats (kdebats@bu ilding-products.com)

CONTRIBUTING EDITORS

Dwight Curran, Carla Waldemar, Roy Burleson

AD SALES MANAGER ChuckCasev (ccasey@bu ildi ng-products-.com)

CIRCULATION Heather Kellv (hkelly@building-pioducts.com)

ADMINISTRATION DIBECTOR/SECRETARY Marie Oakes (mfpoakes@aol.com)

How to Advertise

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About the Cover

The front cover is a paid advertisement, this month sponsored by Osmose.

It's not my fault I'm getting old

One of the best things to happen in my life occurred six years ago when I bought this publication. Truth be known, I was fortunate to be in a position to financially take that chance and not have to take a real job. (Yes, I am not sure that with all the partying at industry events I attend that this is a real job.)

For several months I had pondered what I would do next, since I realized that I had to come out of retirement. And while I had no doubt that I would get a senior-level job, I also knew that I would not get the type of job that my experience merited because I was 52 and that was already deemed over the hill by many companies.

Forget that age discrimination is against the law. Age discrimination exists. It is fact that older candidates (I would say starting at 50) who might be the best candidates often get left out. Or when promotions come along, they get passed over. In both cases, being 15 or 20 years younger would get them the job. There is nothing wrong with being young (been there, done that), but my argument is that the job should go to the best candidate.

Older candidates are often afraid to leave their companies because of the fear of never getting hired again. In these past six years, seemingly great candidates have shared their woes in searching for new positions, and often

ending up in jobs with less seniority and less pay. One thing I know is that if the wallet is not demanding that you take any old job, don't. Make sure it is a job you want and can be passionate about. Think about what is right for you and your family. With due deference to some of our large chains, I do not want to end up dodging customers in Aisle 6.

During a recent flight, I was reading in a national finance magazine about several people who had retired early and were having a ball. That's great, but if you enjoy the camaraderie and want (or financially need) to work, you should be given the opportunity to compete. Ten years ago, there was nothing worse than walking into a room to be interviewed by a 35-yearold, who acted as if he was interviewing his parent. You knew then that you were going to have a half-hour of idle, pretend chit-chat only to be lucky to see a letter some weeks later that the position had been filled, but they would keep my resume on file-right! And, I must say that unintentionally I may have been guilty myself of exactly the same thing 15 years ago!

So the question is how do you overcome objections to your age? You cannot talk down to that interviewer or talk about the Good Old Days. What you can talk about, matter of factly, is vour skill set. how relevant you are to

their requirements, what makes you right for the position, and what you have brought successfully to your prior jobs and companies. Now someone telling me that had better show me their passion. I want to detect a liveliness in their speech, a look of hunger to win. They should be bolt upright in their chair and not about to fall asleep. This is the day you need to look l0 years younger than you are, by making sure you act and dress the part. Please take those pencils out of your shortsleeve shirt. Better yet, don't wear a short-sleeve shirt!

Now all this assumes you got past first base, a.k.a. the "resum6 process." Yes, it is true-the average resum6 gets about a 20-second look if lucky before it hits the "NO" pile. I cannot tell you the look of some of the resum6s that I have received for senior positions. You would be amazed at the typos, messy designs, poor English, inappropriate fonts, paper turning brown of old age, etc., etc. In other words, to stand a chance of not being put in the round file, get a professional resum6 created by an expert. Yes, you will pay for it, but you have little chance otherwise. To avoid the resum6 route, use your industry contacts for ideas who can introduce you to companies that might (or even might not) be looking to hire.

Right now we are in a down market. Opportunities are not as readily available. But when the tide turns, as it will,'there will be jobs us mature ones can handle and handle well. As we baby boomers retire, companies will not be able to find all the talent they are looking for and our day will come again. Into the breach, dear friends!

Lastly, I give thanks for the friendship and loyalty we enjoy as a company in this wonderful industry. Please also help me with my January charity appeal to fight breast cancer (see page I 0 ). Happy Thanksgiving.

, Our Opportunity PLUS* retail sales program assists you in becoming a full-service insulation provider. fhis turn-key program provides everything you need to selland installfiberglass insulation to your builder customers. lf you are supplying over .|50 housing packages a year, this could be the program for you.

Sny Hnppy A/effr Yedr and hetp ercd, hreast cnncer

Use this low-cost opportunity to deliver New Year's greetings to customers, friends and suppliers-and help Susan G. Komen for the Cure, which for 25 years has been leading

the global movement to end breast cancer.

6. Kornen,Jr

Your business card-reprinted in color and reduced slightly to2-318" x 1-3l8" -will appear a special section in our January issue. The cost each ad is just $100, $25 of which is tax deductible and will be matched by us-for a total donation of $50 to Susan

G. Komen for

for

billion, playing a critical role in every major advance in the fight against breast cancer, transforming how the world talks about and treats this disease, and helping to turn millions of

breast cancer patients into breast cancer survivors. It has contributed to real victories, including:

More early detection - Nearly I57o of women over 40 years old now receive regular mammograms, the single most effective tool for detecting breast cancer early (in 1982, less than 30Vo received a clinical exam).

. More hope - The five-year survival rate for breast cancer, when caught early before it spreads beyond the breast, is now 98Vo (compared to 747o in 1982).

More research - The federal government now devotes more than $900 million each year to breast cancer research, treatment and prevention (compared to $30 million in 1982).

The charity was formed by Nancy Brinker, who promised her dying sister, Susan G. Komen, she would do everything in her power to end breast cancer forever. In 1982, that promise became Susan G. Komen for the Cure and launched the global breast cancer movement. Today, it is the world's largest grassroots network of breast cancer survivors and activists fighting to save lives, empower people, ensure quality care for all, and energize science to find the cures. Thanks to events like the Komen Race for the Cure. the organization has invested nearly $1

More survivors - America's 2.3 million breast cancers survivors, the largest group of cancer survivors in the U.S., are a living testament to the power of society and science to save lives.

I)oirrg lour l'*rl ls l'"*sr: Just send us your business card(s) before December 10, along with and a check for $100 per card-or $200 per card to appear in both the West's Merchant Magazine and its eastern counterpart, B P D - B uil din g P ro duc t s D i g e s t-to Cutler Publishing,4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.

Housing woes push down western lumber output for first time in five years

A SWOON in U.S. home consrruc.lf.tion reduced western lumber production in 2006, the first decline in five years, according to final produc- tion figures prepared by Western Wood Products Association.

With housing starts decreasing by nearly 13Vo during the year, western lumber production slipped to 17.9g bilf ion bd. ft., down JVo from the previous year. The estimated wholesale value of the lumber was $6.8 billion. compared to $7.7 billion in 2005.

WWPA compiled the final industry totals for 2006 followine its annu_ al survey of more than 210 *illr oper- ating in the continental West and Alaska.

Oregon remained the largest lumber producing state in the co-untry and fared better than other western stales. Sawmills in Oregon produced 7.03 billion bd. ft. of lumber valued at $2.5 billion. The volume was down 5.42o from the previous year.

After reaching a 76-year high in 2005, lumber production in Washington declined l0.5Va to 5.13 billion bd. ft.-the steepest drop for all western states. The estimated wholesale value of the state's production was $1.gg billion.

Mills in California produced 2.59 billion bd. ft. valued at $1.19 billion in 2006, a 3.6Vo decrease from the year earlier.

Together, the three states comprised 82Vo of the region's lumber production.

In other western states. Idaho lumber production roraled 1.85 billion bd. ft., down 8.\Vo, and Montana finished 8.4Vo lower at 917 million bd. ft.

Production for South Dakota and

Wyoming in 2006 was 299 million bd. ft., and mills in the Four Corner states of Arizona, Colorado, New Mexico, and Utah produced 168 million bd. ft. Volumes in these states were combined to maintain the confi_ dentiality of individual mill dara.

Overall U.S. lumber consumotion totaled 60.47 billion bd. ft., down from the record 64.34 billion bd. ft. set in 2005. Housing starts dropped to 1.8 million for the year, reducing the volume of lumber used in new residential construction by nearly 167o. New home construction and reoair/ remodeling account tor j3Vo oi the lumber used annually.

Home building in the Sunbelt slowed more modestly than the rest of the country, helping mills in the South

maintain production volumes. Southern sawmills produced 18.7 bilfion bd. ft.in20O6, down just 1.5Ta.lt was the first year in modern history that southern mills produced morl lumber than their counterparts in the West.

Lumber imports declined 7.6Vo to 22.8 billion bd. fr. Shipmenrs from Canada, the largest supplier to the U.S. market, were down 6.3Vo to 2O.l billion bd. ft.

WWPA represents lumber manu_ facturers in the 12 Western states and Alaska. Based in Portland, Or., the association compiles lumber industry statistics and provides business information services to mills, as well as quality standards, technical and product support services.

CITIRRED by the develoPment of Dne* products and the housing downturn, the product mix is shifting significantly in the $3 billion-a-year residential fence industry, according to a new study by PrinciPia Partners.

"The residential fence market consists of five major fence styles, including privacy, post and rail, chain link' ornamental, and Post and wire/wire mesh," noted Principia's Steve Van Kouteren. "The market can also be segmented by the four distinct material segments, including wood, metal, olastic and mineral-based or masonry materials. Wood and metal are the dominant materials used, accounting for over 7O7o of the total value."

Plastics are relatively new materials in the fence industry. The dominant plastic material is PVC or vinyl' which was introduced in the market in the late 1970s. Vinyl reached its product growth stage in the early 1990s' and iince this time, the demand for vinyl fence has steadilY grown. Market acceptance of vinyl fence varies by region from over 30Vo penettation to leis than 570 penetration. For example.

afoot in fencing

stvle. from $635 million in 2006 to over $690 million in 2010.

The growth in demand for ornamental fence is due to upgrade trends at the low end as well as the high end of the market. At the low end, the availability of low price point metal ornamental fence panels from Asia is giving consumers an option to upgrade from chain link to a more aesthetically pleasing ornamental metal fence.

At the premium end of the market, ornamental fence demand benefits from the trend to fancY, decorative metal ornamental fence and entrance gates along the front of large estate homes, and more ornamental fence used as perimeter fence of high-end developments.

vinyl has significant penetration Utah and the Long Island region New York, while its Penetration Texas is negligible.

In addition to vinYl, PolYstYrene, wood-plastic composites, and polyethylene are the other plastic-based fence materials. The studY estimated demand for plastic fence materials in the North American residential market to be over $600 million, ot neatly 25Vo of the total market in 2006.

Privacy fence is the most PoPular type of fence style installed in the residential market, accounting for over 5OVo of the total value. Although it dominates the commerical market, chain link also remains popular for homeowners due to its low cost and effectiveness for securitY' Even though chain link has been losing market share to other fence styles' and it is one of the lowest priced fence styles, it still accounted for over 107o of the total value in 2006.

Chain link fence is forecast to have the largest decrease of all fence styles. In contrast, ornamental fence is forecast to increase more than any other

Plastic fence will continue to grow its market share over the next five years. Most demand growth will be for vinyl and composite privacy fence, as replacements for wood. Plastic fence manufacturers have develoPed new privacy fence products with embossed woodgrain and earthtone colors, as well as low gloss to mimic wood. The new composite fence products have an edge over vinyl in regards to availability of a wide range of darker colors.

Both vinyl and composite suppliers are looking to take advantage of the growing consumer demand for low maintenance, non-shiny, white plastic fence by tapping into the huge portion of the wood privacy market that will not consider white vinyl as an option.

Compared to vinYl Post-and-rail fence, which has successfully penetrated and displaced as much as 507a of wood in manY regional markets, vinyl only has about a 167o share of the North American PrivacY fence market. The large wood privacy market is also a target for the foamed polystyrene and 1007o polyethylenebased fence Products'

vINYL privacy fences are among the fastest growing in the residential fencing market

Ihe more rolorful world of d wood

Arch's new organic, Wolmanized L3, is naturally colorless, but is available in several different shades. "It is up to treaters what color they wish to add to the preservative in WolmanizedL3 wood," said Arch's Huck DeVenzio. "Some will probably stay colorless, particularly if they supply manufacturers of gazebos or furniture. My unofficial notion is that a cedar brown color is currently most popular, but there is also a slightly greenish color and, I think, a slightly redwoodish color."

Similarly, Viance's organic Ecolife can be purchased with a natural wood appearance or with added colorant, marketed under the Ecostyle brand.

But even wood treated with copperbased chemicals is beginning to get more colorful. Since its copper particles are micronized, Osmose's MicroPro treated wood is much clearer and lighter than is associated with ACQ, CA and CCA.

GOODBYE,

Wood preservatives with no copper content, such as Wolmanized L3 wood (above), are offered in a range of natural colors.

EtoR years. it's been relatively easy L' to identifv one's treated wood inventory by a quick glance across the yard. Stacks of green usually meant pressure treated.

Because treated wood's copper content is responsible for its greenish color, the industry's conversion from CCA to "next generation" preservatives such as ACQ and copper azole didn't eliminate the green color, so much as it introduced a wider range of greens, from light greenish brown to dark olive.

But the increasing popularity-and growing number- of specialized-use chemicals, many of which contain no copper, are turning treated inventories into a veritable rainbow.

Most of the chemicals themselves are. in fact. colorless. And customers seem to prefer a natural wood look, finding it both aesthetically pleasing

and easier to paint and stain.

But treaters realize that the lack of color could have a downside. If all wood looks the same, it's potentially easier to mix inventories between treated and untreated (and between woods of differing treatments). And, customers might doubt whether the wood has been adequately treated-or treated at all.

Consequently, treaters are adding colorant to the treating solution for identification purposes. Most commonly, wood preservers using borates add a blue dye during the treating process. Most fire retaradant treated wood is colored reddish brown. (Arch Wood Protection is currently changing its FRTW from light red to orange.)

Mold treatments run the gamut. Arch's FrameGuard is green. Perfect Barrier's Bluwood is blue. Viance's QuanTIM is purple.

Consequently, said Osmose's Tom Horvat, "it shows the woodgrain pattern better and provides customers with a fresher looking treated wood product. Another benefit to the wood's lighter color is improved painting and staining. Response by builders, architects, designers and do-it-yourselfers has been overwhelmingly positive."

In addition, Osmose has developed MicroShades, a process for micronizing iron oxide pigments. The MicroShades color system is combined with the MicroPro treating solution to produce fencing, deck boards, and deck rail systems in popular consumer colors, such as cedar honey/brown and redwood red/brown.

"Our wood treating customers can produce a MicroPro treated fence picket that is warranted for 15 years against rot, fungal decay, and termite attack," Horvat said. "In addition, the MicroShades color system offers the added benefit of longer lasting color when compared to natural cedar and redwood, which turn silvery gray over time."

GBEEN:

wflT#: *T HXffi:1X.1i:'"i: ::; PVC

decking.

composite deck expanding into

This year alone, five companies have introduced alternative-decking products manufactured wholly from PVC: Trex, Azer, Fiber Composites, Gossen, and L.B. Plastics.

Trex's entry into non-composite decking was accomplished through a recent partnership with Vera Innovations, a leader in PVC blending and extrusion technology. "Our research revealed a segment of the market that's seeking a high performance, lower maintenance decking option," said Richard McWilliams, v.p.-marketing. "Trex Escapes addresses these needs."

He added that the new line of decking and fascia is lightweight and easy to install. It also resists stains, molds, and scratches, and can be easily cleaned with just soap and water. The woodgrain decking will be available next January in three colors: gray, beige, and brown. Fascia will be available in matching colors, plus white.

Fiber Composite is another composite manufacturer that is introducing a cellular PVC product. "We were one of the first to manufacture vinyl-wood products in the late 1990s," said president Doug Mancosh. "Fifty percent of our platform has been PVC-based since the company began."

Named Sanctuary, the new product will be available next month. The PVC core is covered by ASA plastic, a

w pl^yers climb into C decking

protective finish used in the automotive industry to provide superior color retention and weathering, as well as resistance to mold, mildew and stains. "The color you choose today will be essentially the same color many years from now," said sales v.p. Bill Ross.

"Unlike previous generations of cellular PVC products, Sanctuary is neither plain nor synthetic in appearance," said Ross. "Sanctuary will be available in both solid colors and multi-chromatic color boards that really look like wood." Photo-engraved embossing of real mahogany decking provides the realistic look.

Ross said that the product is also 31Vo lighter than the leading composite decking brand and easier to install. A side groove accepts the Phantom Fastener hidden fastening system, which requires 5OVo percent fewer fasteners and is self-gapping.

L.B. Plastics is breaking into the decking market with a similar strategy-PVC deck boards with a protective polymer finish. "Recent technology allows PVC decking to look more like natural wood look, but have superior weathering qualities," said national sales manager Ted Davis. "We've been testing our product for the better part of three years, both in the field and independent lab testing."

AZEK DECKING complements the PVC trimboards and mouldings the company already manufactures.

TREX ESCAPES appeals to consumers who want a decking material with higher performance and lower maintenance.

The goal, he said, was to capture the deep, rich look of naturally stained wood. "The main problem with plastic is the lack of a wood look and fading of darker colors," said Davis. "We spent a lot of time on embossing for woodgrain that has color striations and pattern variation like stained wood boards." The new SheerGrain decking is available in two colors: oak and driftwood.

Another plus is that SheerGrain is half the weight of many composites and will not rot, absorb moisture, stain, or fade. It's also code-approved for up to 24" joist spacing. said Davis, and installs easily with hidden fasteners that keep the area below the deck dry.

Gossen Corp., founded in 1928 may be best known for its PVC moldings, but of late has been aggressively promoting its WeatherReady line of exterior building products, including trim boards, window systems, door frames, and garage door weatherstripping. The newest addition is WeatherReady solid core, cellular PVC decking. The deck boards are stain-resistant, scratch-resistant, lightweight and offer a two-sided, textured surface.

Azpr Building Products entered the decking arena when it purchased Procell and its proprietary cellular PVC technology. "This is an exciting milestone for Azer," said president Ralph Bruno. "The addition of the next generation of decking elevates our company to a full-line supplier of premium exterior products." The company already produces PVC trimboards and mouldings that are available at more than 3.000 dealers in North America.

Advertising for the product highlights the evolution of decking: first there was wood, then composites, and now Azer Deck. The company said that the decking is easy to install and maintain, yet also resists stains, molds and

mildew. "Pro dealer studies show that these are key issues for them with other decking products," said Bruno.

Ten years ago, alternative-decking materials-composites, plastics, and PVC-represented only 5Vo of the market. In 2006, they accounted for lTVa of the 3.3 billion lineal ft. of decking installed, according to a new Freedonia Group study.

Although composites will grow faster than pure plastic decking (14Vo a year vs. JVo,Freedonia predicts), there are currently far more manufacturers of composite decking.

ttlr I

SHEERGRAIN technology allows a more natural wood look with superior weathering qualities.

Whql to look for in q turnqround

speciqlisl

By Ruediger Mueller CSC Capital Group

fN CORPORATE distress situations. lrestructuring specialists typically focus on the financial aspects of the turnaround and neglect an equally important component- leadership.

Leadership is distinctly different from management. Whereas management deals with day to day management, operations and structure, leadership is oriented toward the future and deals with developing a shared vision, creating core values, and culture.

According to the Tumaround Management Association, the overwhelming majority of distress cases are the result of internal corporate issues. These are almost always the result of ineffective leadership, which fosters a culture of complacency.

Just as inadequate leadership often leads a company into distress, it is a key element in turning around a company and assuring its long-term viability. The Leadership Profile, developed by Rosenbach and Sashkin, has been used to assess and improve leadership and create high-perf,ormance organizations. The instrument measures various scales of leadership, each of which can be directly applied to turnarounds in small- and mid-market companies.

. Capable Management refers to the leader's ability to manage day-today business activities. In distress situations this includes quickly identifying key talents and involving them in critical turnaround activities. It also means identifying individuals who, either because of their performance and competencies or because of the structure of the company going forward, need to be laid off.

Personnel to be retained, especially those in key roles, need to be given clear, challenging and measurable objectives. Turnaround executives

should create a strategic team and involve it in decision-making processes. An outside expert can benefit from the insights on vendor and customer relationships as well as internal operations that these individuals can bring to the table. Convey to the entire team not only objectives, but also priorities and make available the tools required to achieve objectives.

. Reward Equity. To cut costs, distressed companies often cut compensation and benefits for individuals remaining in the organization. Such cuts can lead to an exit of key talent, especially when their skills are in high demand. Reward equity requires fair, equitable compensation for all personnel without preferential treatment of any group or individual. High-profile bankruptcies, such as Delta Air Lines, have promised employees, in return for often substantial cuts in compensation, shares in the company once it emerges from bankruptcy.

In small and mid-market companies, employee stock ownership is typically not an option, given that companies are privately owned. However, alternative plans, such as profit sharing, are appropriate ways to retain key personnel. Intrinsic rewards, such as recognition and appreciation, can further support commitment to the organization if perceived as genuine. Awards, plaques, certificates, etc., if perceived as empty gestures, are counterproductive.

. Communication. In distressed companies, rumors abound and affect the morale of employees as well as customer and vendor relationships.

For the turnaround manager, it is critical to manage rumors. A manager brought in from the outside is often seen as the enemy, whose only objective is to lay off people and dismantle the company. This author has been labeled "hatchet man" before even arriving at a company for the first time. Therefore, it is important to communicate that any actions that will be taken, no matter how painful, ultimately serve the purpose to preserve the organization and with it as many jobs as possible.

Communicating to the extent possible the state of the organization and the actions that will be taken to save it helps manage expectations and creates buy-in into even painful and unpopular measures. Communication must focus on the positive (the benefits derived from even painful steps) and deal with real issues. Finger pointing is counterproductive.

Assume that any rumors circulating inside the company will be amplified to the outside world, especially customers and vendors, through contacts with employees. Communication, therefore, is not limited to employees, but is equally critical in relationships with the outside world in order to ensure continued supplies and prevent customer defection. In one situation the best sources of information about employee morale and rumors were vendor reps, who reported to management the rumors about the company they had picked up at competitors.

. Credibility. It can be tempting to evade questions about layoffs, plant closings, or other unpopular measures

as long as possible. However, experience has shown the rumor mill to be highly effective; any planned actions become known whether they are communicated or not. However, in the latter case, the magnitude of any planned actions tends to be exaggerated.

Furthermore, undue secrecy or false information undermines the credibility of the turnaround manager. This makes the implementation of needed actions difficult. creates an atmosphere of distrust, and fosters passive resistance and sabotage. The manager, especially if brought in from the outside, has to engage in trust building activities, mentoring and coaching as an important step to generate buy-in and to build a team that can lead the company into a successful future.

A typical example for the importance of communication and credibility is the handling of layoff decisions. Honesty about the need to cut the current workforce is unlikely to increase defections because in typical distress situations morale is already low and insecurity about continued employment will already have prompted job searches. Open communication may very well stem an exodus of capable employees in areas where layoffs are not planned. Wherever possible, go through only one round of layoffs instead of multiple incremental rounds. This allows a turnaround expert to refocus the remaining workforce on the job at hand without fear of additional layoffs.

. Caring Leadership. This should not be misunderstood as weakness or as being soft. Caring leaders should be firm and decisive. At the same time, they should show respect for those they deal with. Openness and candor are no excuse for an insulting "inyour-face" attitude. Such behavior only serves to alienate those one works with and leads to resistance, defection or sabotage by key talent. Demonstrating concern for people creates trust in one's abilities as a leader.

Enabling Leadership. Managers don't turn around companies, employees do! Turnaround and restructuring experts must rely on key talent in their client organization to get critical tasks done quickly and efficiently and, therefore, must create the conditions for them to succeed. Enabling leadership requires identifying the right individuals and giving them the authority and the tools to work independently. The restructuring expert takes a calcu-

lated risk by allowing key personnel to work largely independent, form their own teams, and as a result having the freedom to make mistakes. Acting as an enabler creates dedicated managers and with it the management infrastructure the company needs.

In crisis situations more than at any other time, people look for strong, capable leaders to solve the current crisis. In distressed companies the turnaround expert assumes that role. Whether employed as c.e.o. or brought in as consultant, they are often perceived as arrogant, self-serving individuals with abrasive personalities. The nature of the task requires quick decisive action that leaves no room for lengthy discussions about the merits of one approach over another.

Autocratic, self-centered leaders are counterproductive in most situations, but especially harmful in distressed companies. Employees look for leadership that not only will rescue the company, but at the same time keeps their interest in mind.

Articulate the Vision. Most important, stakeholders need a vision for a better future. The turnaround manager has to develop and communicate a vision that sets goals and expec-

tations for the workforce and assures external stakeholders that the company is here to stay and is a viable partner for the long term.

. Rebuild the Culture. Finally, in order to assure long-term survival and lead the organization out of its current crisis, the turnaround expert has to rebuild the organization's culture. The typical stresses in distress situationslayoffs, budget cuts, increased workloads-leave a mark on the remaining workforce. The successful leader identifies a set of shared core values for the rebuilding and stabilization phases that increase performance and refocus the workforce on the future.

Leadership is rarely mentioned in turnaround situations. Cash management, cost cutting, banking, customer and vendor relationships take center stage. Yet, creating a viable future for distressed organizations requires leadership capable of re-energizing a downsized, demoral ized workforce.

- Dr. Ruediger Mueller, CTP, is a principal with CSC Capital Group, Portland, Or., a corporate restructuring firm specializ,ing in the lumber and building materials industry. He can be reached at (503) 5 59 -2 300 o r v ia www. c sc-caoital.com.

ligence f)avid vs. the Goliaths

By Carla Waldemar

A NDREW Taylor aimost qualifies lA.as an endangered species. No. no spotted owls in the family treeinstead, a lineage of lumberyard owners that goes back to his great-grandfather. And, while fourth-generation ownership is increasingly rare these days, Andy is shooting for five. He's the proud papa of sons seven months and l9 months of age, and he's hoping they'll take over the family business one day.

Not a slam dunk in this era when many an independent is in the crosshairs of the boxes' arsenal of weapons. Andy knows that. He learned it firsthand when a Depot pulled in on one side of him and a Lowe's on the other. So, to maintain a healthy business to pass on to his sons, he turned proactive and ramped up his focus on customer service-the best ammo to fend off the big boys' assault.

For the record, Andy himself was not all that certain he wanted to inherit the GM's office. "As a kid, did you love or hate the idea?" a reporter wondered. "A little bit of both," he confesses. "I graduated from college with a degree in criminal justice and

planned to go into law enforcement," he relates. But the lure of the sawdust won out. "I got back into the business and I'm happy I did," he professes.

That business -Taylor Lumber/ Ace Hardware, Marshfield, Ma., a coastal community south of Bostonhas been changing over the past l0 years, Andy reports. The town has morphed from one of seasonal vacation residences to a year-round community. And that means a whale of a lot of remodeling going on, the mainstay of Taylor's trade.

That growth is also what caught the eye of the boxes, which moved in a couple of years ago. "My employees got nervous, and," Andy relates, "we did take a little hit during that first year when people tried them out. But once they get it out of their systems, they settled back with us."

To help that happen, Taylor stepped up its advertising program as well as its community involvement, sponsoring everything worthy, from Eagle Scouts to school PTOs. It launched a program called Taylored to Non-Profits, which offers discounts to organizations, including Habitat for Humanity. Says Andy, "You don't get rich, but you make a lot of friends."

To woo customers more directlv.

the store also hosted Ladies Evenings-a series of classes in general carpentry and home repairs. "We served finger sandwiches and dressed up the place," says Andy, who met his goal. "The people who came through keep coming back."

He also launched a Trusted Contractors service that lists referrals for homeowners of contractors whom Taylor deems reputable: "licensed, insured, with high customer satisfaction ratings and returned phone callsa service for d-i-yers in over their heads or those with no time. The program doesn't benefit us directly [in revenue]," he says-but those contractors are mighty wise about where to shop. (In the past, Taylor has hosted contractor events, but Andy has found that their impact diminishes upon annual repetition, drawing those looking for free drinks rather than info from vendors.)

Instead, he provides what they truly treasure: free delivery ("and timely: when we say we will" he adds) and top-notch service, backed by in-depth knowledge. To assure that strength continues, Taylor conducts frequent staff training sessions in everything from product knowledge and safety to sales courses, underwritten by Ace.

ADDING a rental center 18 months ago gave the business a boost. Local Chamber of Commerce members were invited to participate in the opening with owner Rick Taylor (3rd from left), Andy Taylor (with

scissors), rental center manager Jerry Cooper (4th from right), and service manager Skip Brown (2nd from right).

His staff ol' l4 full-tinrers alc lieLe lbr thc long haul. Whr tkr thel stick arounrl .' \'ar.icty is a key I'uctrtr. "Thelc's somethin.u difl'crcnt fbl thcnt cverv tlav. Wc cross-trurin thcnr. so thcv can rrork in thc yaril, in the landscapinu clcpartnlcnt. or bchincl thc counter. [ivery.' clar therc's a clifle'rcnt |1r' jerl. ntlr-\ hc th.. ()|PrrttUnit) l(l lork n,itlt a d-i ycr and thc satisl'ac tirlrr of secirrg his rreccls nrcl. Or clcirl ing ri'ith contractors in thc 1'ard ancl lh(' llr'r'Ullll)lirlttttcttl ol sCeirrs lle\\ ()t' rcnlrdelccl houses contplctctl.

"Bc.ttttre ol'tltir r'u)lontel rttir. oru' *cckctrcl husiness is strrlns." ltc reporls. Anrl ntarqins'.) "Stlong. t<to. We knu*' \\c'rc not thc chclpcst. but u.'e scll our scrvice."

Arrother l'acct o1'that scrvicc is Taylor's rcntul clcpartnrcltt. luunclte-d u vear antl a hall'ago "cvcrything ffom floor sandcrs 1o small cxcavalof s." Andy savs. "Oul aint is onc-stop sltoppin-c-t(x)ls. advicc and ltr'oduct. -fhcy lcecl o1'l cacl.r otltcr. lt ntakes u nice additiorr to our lanclscapirtr aucl colttractor busincss."

Yet thcrc arc scrviccs Taylor has clccidecl to stary awar' front. "Wc clorr't Itrtre lrttr,rttlsidt' \itle\ntr'n: \\c'\e r()ltcn a\\'a\ lront tllrt. We tcnc'l to bc nrorc picky atrd ckrn't chasc altcr cus

ACE'S Andy Tay or takes pride in the experience and product knowledge that come from his slore's high employee retenlion rate.

tolncrs." hc slt s.

Nor clocs 'l'aylol go ovelboarcl otr frcc cstirnatcs. As Antlr sces it. "Nlor-e ancl nrore. contrilctors brin-r rrr u big stack ol plans. bLtt thcy havcn't stucl icd tlrcrn. Thcr''re Iooking fol lou pliccs n ithout slrcnrlinu tl-rc trnc on their crrcl levicl ing thc ltlans. antl that rnakcs rrrc ltcr\,oLls. So rrot. I cllrrqc thcm. I tcll thcrtr. 'Therc's a f'ec lssociatccl u ith that.' ()1'coulsc. the lcc is lcbatecl u,'hen thcv actuallv ntakc ltur c hases. "

With an c\e to thc futr.tr.c. Andl' Itas cstlblishcd an intcrnshi1t/1talt-tirnc crrrployrncnt prognrnl 1bl hish scltool ancl collcqc stuclcnts sccking not'k exlrcriencc. "What I like to do." lrc

cxplains. "is Itilc kids in their solthonlore \cur of high school to rvork in the yarcl and s(ocking shclves utter scl-tool ancl surtrntcr'\'acations f()r a couplc of 1ears. 'l'hey go off to col, lcgc. and norv thcl're 19. 10. r I irncl conrc back to us. ancl thct'r'c just as vlluablc us n'r1' lirll-tirne crlltloyecs all thc abilitics ctf a lirll-tintcr. but no1 at that salulr'. TItct knon thc s)'stcln. krtow the cLlstonters."

And indccd. scvcral. rr ho r-rcr cr clrcanrcd ol'this inclLrstrr as lr cilrccr goal. har r-' stat cd rtn.

Yct. as \\'c're sccing all across thc coLlntry. thc I'uture's not irs ros\ as tltc glolv ilats of' r'ccent rcrrs. To cornbat a bit o1 a sluntp, Andv has turtrccl his tbcus to incrcasing his tul'ns b1 buy inu itt .ntlrllel t;rrrrnlilic. rrrlr) i',.' rr.,t lr tull curloacl of lurnbcr arryrnorc. "-fhat \\il). )otl llit) t'loscr ntl\'ttli()lt t,r inrcrtlorv anrl tLrrn it ovcr quickcr. t() gclter ate prolit." he cxltlains.

Put it lll togcthcr ancl rou colnc up ivith a clcar rrcssuge: Borcs. look oLrtl Ancll 's sot \ oltr nuntber. ancl thcrc irrc [\\o )our)s Tayl<trs rvaiting in tlierv i ngs.

.\.lrtrntcr ttvunl r,irtuirt,g Ll)M tnrtlc trttr,qtt:ittt, ttlitot', ('ttrltt Wultlutttt r ritts lit'tltrtrttlt orr !lta itttlrr.stt.t. ('orttttr't lttt ttl

sqles Our approach matters

By James Olsen

D ECENTLY one of my students told me he learned -[Lsomething. "James, I-'ve finally learned how to sell manufacturers."

I asked him what had changed. "I speak to them with a more serious tone." This student happens to have an outgoing personality and approaches most people with an open, joking style. "James, when I sell distributors, they love the jokes and the negotiating back and forth. But these manufacturers are more serious. They want me to slow down and explain the product and the logistics of delivery more."

We can all learn from this student's experience. It's not that we must speak seriously to manufacturers and joke around with distributors. What we learn is that whatever our natural style is, if we want to sell a broader range of customers, we will have to develop other styles or approaches.

I think this is one of the most difficult things that I teach. Let's face it, most of us have lived through childhood and adolescence working on our personalities and how we approach our fellow man. Some of us have struggled more than others to get along socially, but we have all found a way to communicate in the world.

As salespeople, we need to be more flexible than nonsalespeople, because we deal with a larger number of people than most and because we are trying to move these people to action. It's one thing to sit around talking about the latest ballgame or the weather; it's a different thing all together to talk to someone about spending money. This is where professional level communication skills are needed.

Two Common Problems and Solutions

more. Here are a few of basic mistakes we work to correct with salespeople:

Hesitant speech. We must prepare. Many salespeople are just saying what comes out of their mouth. This is not professional. Sure, we can wing it, but somewhere in an important call there will be hesitation on an answer or a solution.

When we hesitate, the customer begins to doubt what we are saying and will buy less. I'm not talking about sounding sure about something we are not sure about. I'm talking about sounding sure about things we know are truel The knock on salespeople is they are liars. They say they are sure about things they are not sure about. There may be a small percentage of salespeople that are giving the rest of us a bad name. But the majority of salespeople I work with are honest, hard-working people.

What I see more often is salespeople who are afraid of living up to the poor reputation of the few bad apples who do lie. The problem is these salespeople speak hesitantly even when they are sure of what they are talking about. "We are selling these" is better than "This might be a pretty good dea\."

Preparation is the best cure for hesitant speech. We plan out our calls before we make them. We have a plan for how the call will progress. We think about, write down and practice our answers. This way we will sound more confident and our customers will want to buy from us.

Couching Statements. Any time we use a weak qualifier in our speech we are telling people we don't truly believe what we are saying. "This might be a good deal." "l think this will work for you." "We wlll probably deliver this on time."

If we know something to be true, then we say it is true. "This is a great deal!" If it's a great deal say so! If we are going to do something, we say we are going to do it, we don't say we are probably going to do it!

Change a losing game. We have to be smarter than the monkeys in the zoo. As with my student above, if we are pushing a button and no candy is coming out, we need to push a different button. Whether our approach is light or serious, it will not work with all customers. When our current approach with customers isn't working, we change that approach!

I work with salespeople nationwide to help them communicate in a way that will help them sell

- James Olsen is principal of Reality Sales Training, Portland, Or., specializing in sales training for the lumber industry. He can be reached at iames@reality-salestraining.com or (503) 544-3572.

Mitting

Nu Forest Products is a full-line distribution yard that, unlike many, has a wide range of milling equipment that enables us to handle all your specialized needs. NFP can mill lengths from 8" to 38'-your stock or ours.

Rus, let Nu Forest Products prime your stock tfuouglr our Paint-o-Matic and drying oven. Protected with up to two coats of top-quality primer to minimized moisture problems, NFP Prirned Products perform better.

Our inventory includes Redwood (KD & Green), Dou$as ftr (KD Clears & Dimension, Timbers), Pine KD (Commons & Clears), Western Red Cedar (Select Knotty, Clears, Timbers), Hem-Fir (Fascia), Fingerjoturt (DF, Redwood, WRC), Pressure Treated DF, and RMT Engneered Timbers.

R:rllrrns

Fox Lumber, Green Valley Lake, Ca., was destroyed by the wildfires that raged through Southern California in midOctober

Central Home Supply, Santa Cruz, Ca., is seeking approval to relocate to 4 acres owned by Scarborough Lumber in nearby Scotts Valley

H elliesen Lumber, Yakima, Wa., has purchased a 3.7S-acre parcel for $1.8 million, but declined further comment

84 Lumber Co. held grand openings Nov. 27 for a 9.6-acre yard in Redmond, Or. (Thomas Gilbert, mgr.), and a store with compansion component plant on 9.5 acres in W. Jordan, Ut. (Randy Harris, general mgr.) ...

Hubbard's Ace Hardware, Medford, Or., predicts a Febrary completion for its year-long, $2.5-million renovation and expansion ...

Elmwood Hardware, Berkeley, Ca., closed Oct. l, as owner Tad Laird contemplates whether to invest in extensive remodeling or remain closed ...

Ace Hardware opened last month at the new Boronda Square Center in N. Salinas, Ca.

Capitol Lumber, Lacey, Wa., lost $100,000 in equipment in mid-October; sheriff 's deputies are investigating the possible burglary of a 1998 Macktractor, utility trailer, and attached Moffett forklift...

Lowe's Cos. will open a new store in N. San Bernardino. Ca.. Nov. 13 and unveiled new stores Oct. 30 in N. Visalia, Ca., and S. Lacey, Wa., and Oct.23 in Renton, Wa., and Fernley, Nv. (Steve Schoenberger, store mgr.) ...

Lowe's won approval to build on 15 acres in Highland, Ca.; is proceeding with plans for a location in Hanford, Ca., after the city council denied an appeal by environmentalists; is awaiting a ruling from the Tuolumne County Superior Court regarding plans for a 112,000-sq. ft. store on 11 acres in Sonora, Ca., and will build a 170,000-sq. ft. store in Richmond, Ca., if a county-owned health center can relocate ...

Home Depot opened new stores act.25 in E. San Jose and Yucca Valley, Ca.; Oct. 18 in Compton, Ca.; Oct. 11 in Spanaway (Tacoma), Wa.; Oct. 4 in Richfield, Ut., and a new format Design Center Oct. 18 in Concord, Ca. (see story, p. 34) ...

Home Depot expects to open early this month in a new shopping center in Chino, Ca.; has acquired a site in Silverthorne, Co.; received the go-ahead to begin construction in Pahrump, Nv., and expects an early 2O09 opening for a 130,000-sq. ft. store on 11 acres in Roy, Ut. ...

Home Depot failed to receive approval from the California Coastal Commission to build near Belmont Shore (Long Beach), Ca., because of traffic, environmental, and safety problems; decided against building on a 19-acre site in Novato, Ca., and closed its San Pedro, Ca., store twice in September due to bomb threats that proved to be hoaxes

Wror:snrns/lhrrurlcrurrrs

American Lumber Salas, San Bernardino. Ca.. has closed and on Oct. 30 auctioned off its moulding and millworking machinery ...

White Sands Forest MFP (Mescalero Forest Products) closed its Alamogordo, N.M., sawmill last month, putting more

than 70 employees out of work; the company acquired the 100year-old facility in 2001 ...

Sierra-Pacific Industries, Redding, Ca., has acquired 140,000 acres of timberland in SW Washington from The Campbell Group, Portland, Or. ...

Manke Lumber Co., Tacoma, Wa., eliminated its second, effective October29 ...

Lumbermens Credit Association, I31-year-old publisher of The Lumbermens Redbook, has closed its Chicago, Il., offices ...

BW Creative Wood, Maple Ridge, B.C., is rebranding its Creative Railing Systems products as Rail Simple and changed its website to www.railsimple.com

Setzer Forest Products, Sacramento, Ca., now produces MDF products that all qualify for LEED credits...

Cooley Forest Products, Phoenix, Az., is a new distributor for borate-treated ES+Wood ...

Anniversari es: Canyon Lumbe r Co., Everett, Wa., 100th Emerson Hardwood, Portland, Or., l00th ... Georgia-Pacific Corp., Atlanta. Ga.. 80th ... DeCou Lumber Co., Atascadero, Ca., 70th Saroyan Lumber Co., Huntington Park. Ca.. 60th ... Bear Creek Lumber, Winthrop, Wa., 30th ... Orepac Building Products, Wilsonville, Or., 30th ... Kuna Lumber, Kuna, Id.,5th ...

Housing starts in Sept. declined l0.2Vo to a seasonally adjusted annual rate of 1.19 million units, the lowest in over 14 vears single-family starts slid I.7Vo to a 963,000-unit annual pace, while multi-family dropped 34.37o to a 228,000-unit rate ... regionally, (Please turn to page 44)

FF,L

#mtoqrytffiTffi tY il ruffi ffiea ru ffi m.

Innovation and dependabitity make up the fibers of our company and the products we create.

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

'Yi-bor

BORATE TREATED WOOD

Hi-boro brand treated wood is a borate treated product designed for interior house framing in Ha iti-bor' trealed wood resists attack by Foimosan termites and numerous hbusehold

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

llovrmrrn

APA-The Engineered Wood Association - Nov. L0-13, annual meeting & exhibition, Hyatt Grand Champions Resort & Spa, Indian Wells, Ca.; (253) 565-6600.

Black Bart Hoo-Hoo Club - Nov. 14, initiation, Ukiah Garden Cafe, Ukiah, Ca; (707) 462-3100.

Mountain States Lumber & Building Material Dealers Association - Nov. 14, seminars, Holiday Inn Central, Denver, Co.; (303) 793-0859.

Lumber Association of California & Nevada - Nov. 15, California Building Code seminar, Marriott Sacramento, Rancho Cordova, Ca.; (800) 266-4344.

National Association of the Remodeling Industry - Nov. 15, Greater Portland chapter's annual supplier's fair, Holiday Inn, Portland, Or.; (503) 788-2274.

Building Industry Show - Nov. 15-16, Long Beach Convention Center, Long Beach, Ca.; (909) 396-9993.

North American Wholesale Lumber Association - Nov. 15-17, annual NAWLA Traders Market, Hilton Anatole, Dallas, Tx.; (800) s27-82s8.

tirePROo brand interiorfire ret rdantis the construction indusfy's qervest and most advanced fire. protection slstem for worid. The unique FirePro drernistry iS a gatent p€nding formulation frat coriuins no phosphomusbased comlnunds.

Drcrmrrn

Mountain States Lumber & Building Material Dealers Association - Dec. 3, installed sales workshop; Dec. 4, benchmarking for excellence seminar; Dec. 5-6, blueprint reading/ estimating workshop, Holiday Inn Central, Denver, Co.; (303) 793-0859.

Oregon State University - Dec. 3-6, 59th annual "How to Dry Lumber for Quality & Profit" workshop, Corvallis, Or.; (800) 678-63 I 1

Lumber Association of California & Nevada - Dec. 4, California Building Code seminar, Marriott Riverside, Riverside, Ca.; Dec. 6, 2nd Growth holiday meeting, Sheraton, Cerritos, Ca.; (800) 266-4344.

International Wood Products Association - Dec. 4, regional meetings, Sheraton Delfina, Santa Monica, Ca.; Dec. 6, Portland City Grill, Portland, Or.; (703) 820-6696.

Colorado WOOD Council - Dec. 6, year-end party, Mile High Stadium Club-Invesco Field, Denver, Co.; (303) 793-0859.

Portland Wholesale Lumber Association - Dec. 8, Christmas luncheon, Embassy Suites Hotel Portland-Airport, Portland, Or.; (503) 648-4156.

Los Angeles Hardwood Lumberman's Club - Dec. 9, holiday party, Balboa Bay Club & Resort, Newport Beach, Ca.; (323) '723-9856.

Ecobuild - Dec. 10-13. Washinston Convention Center, Washington, D.C. ; www.ecobuildfall.com.

Softwood Export Council - Dec. 11, winter meeting, Portland, Or.: (503) 248-0406.

Washington Hardwoods Commission - Dec. 13, meeting, Natural Resources Building, Olympia, Wa.; www.wahardwoodscomm.com.

fmumv

True Value Co. - Jan. 7-8, rental market, Orange County Convention Center, Orlando, Fl.; (773) 695-5175.

Western Hardwood Association - Jan. 9, board meeting, Red Lion Hotel at the Quay, Vancouver, Wa.; (360) 835-1600. Do it Best Corp. - Jan. 16-18, winter conference & expo, Shingle Creek Resort & Golf Club, Orlando, Fl.; (260) 74853 16.

Western Pallet Association - Jan. 19-22, annual meeting, Rancho Mirage, Ca.; (360) 335-0208.

Tnn MoncnaNr

tion news

Lumber Association of California & Nevada installed Eric Ziedrich, Healdsburg Lumber, Healdsburg, Ca., as its new president at its annual convention in Monterey, Ca. (See next month's issue for more conventictn coverage. )

Wildfire safety changes to California's building code will be the subject of a seminar held Dec. 4 at the Marriott, Riverside, Ca.

The 2nd Growth group will hold its holiday meeting Dec.6 at the Sheraton, Cerritos, Ca.

Mountain States Lumber & Building Material Dealer Association is hosting a series of seminars by Mike Butts, LBM Solutions, Dec. 3-6 at the Holiday Inn Central, Denver. Co.

The first day will cover installed sales, followed by a one-day benchmarking for excellence class, and

finally a trvo-day blueprint reading and estimating seminar.

The Colorado WOOD Council's year-end party will be Dec. 6 at the Milc High Stadium Club, Denver.

International Wood Products Association is hosting regional lunch meetings Dec. 4 at the Sheraton Delfina, Santa Monica, Ca., and Dec. 6 at the Potland City Grill, Portland, Or.

Both will deal with overseas product and supply trends, the U.S. market for imported wood, and legislative/ regulatory issues affecting imported wood users.

Portland Wholesale Lumber Association will celebrate the holidays Dec. 7, with its annual Christmas luncheon at the Embassy Suites HotelAirport, Portland, Or.

Guest speaker is Hal Salwasser,

professor of forest resources and forest science, dean of the College of Forestry, and director of the Forest Research Lab at Oreson State University.

Western Pallet Association will hold its annual mecting Jan. 19-22 at the Rancho Las Palmas Resort & Spa. Rancho Mirage, Ca.

Speakers will discuss economics affecting international trade, national and international issues. and horv to save your company from fire disaster.

North American Wholesale Lumber Association will offer its Buyers' School Dec. l0-13 in Chicago, Il.

The program is designed for those in the lumber, millwork, and building materials industries who are involved in buying, sales, inside sales, or management. Topics include inventory management and distribution; hedging strategies; industry-specific case studies, and business ethics.

Western Red Cedar Lumber Association has set the dates for its spring 2008 Cedar School-April l417 at the Pacific Palisades Hotel. Vancouver, B.C.

The 8'Corvado.

You may love it almost as much as we do.

We wanted one thingfrom our two-panel plank door-perfection. Lay eyes on the premium craftsmanship and distinctive style of the new 8'Corvado and you'll see why a little obsession can be a very good thing. To us, doors aren't just an occupation. They're a preoccupation.

We're door pnople"

Colorado Yard Winding Down

United Lumber, Brighton, Co., is liquidating and will close by the end of the month.

Bill Peterson, whose family has owned the 104-year-old lumberyard for the last 60 years, is retiring and has sold the property to the developer of a proposed civic center.

"It's time to move on, do other things," Peterson said. "I've been president down there for 34 years, and I think that's long enough. When this opportunity came to sell the property, I just figured it was a good time. At my age, I didn't want to relocate it to another spot."

New Deadline In Prlco Case

Participants in Pacific Lumber's Chapter 1l process were told to pick a mediator by Ocl 24 and present a unified bankruptcy plan within 30 days. Judge Richard Schmidt did not rule on whether Pelco or its creditors should control the reorganization of the troubled company.

Under bankruptcy law, PALCo gets priority on proposing a plan to reorganize the company and pay off its debts. On Sept. 30, the company

unveiled a bankruptcy-exit plan that it claimed would repay all creditors in full through $l.l billion raised by developing and selling some of its more than 200,000 acres of California timberlands.

PRt-co called the plan its best option to "unlock trapped values in their embattled timberlands" and deal with strict environmental regulations.

The plan requires support from creditors and approval from a bankruptcy court judge.

"I think it's a win-win plan," said Pnlco c.e.o. George O'Brien. "It does what you're supposed to do in bankruptcy-come up with a plan that pays everyone in full and generates value for equity."

As part of the plan, Palco's six related businesses would be merged. Their combined assets have been appaised at roughly $1.4 billion and their claims estimated at less than $l billion.

The most controversial part of PaLCo's proposal is selling 22,000 acres of its most valuable redwoodswhich are located in Humboldt County-as 160-acre timber farms.

The board of supervisors in

Humboldt County immediately acted to block the sale. Bondholders of Perco subsidiary Scotia Pacific, who are owed about $785 million, believe the timberlands are worth far less than the company claims.

EPA Fines Hardware Store North Valleys True Value

Hardware, Reno, Nv., has agreed to pay a $2,7 5O fine for selling a residential pesticide containing chlorpyrifos, which has been prohibited since Dec. 3t,2001.

"These pesticides were canceled due to their potential to harm children," said Katherine Taylor, associate director of the community and ecosystems Division for the EPA's Pacific Southwest office in San Francisco, Ca. "The EPA issued a cancellation notice that indicated when retail sales had to stop. Retailers must keep themselves informed and promptly remove canceled pesticides from their shelves."

The complaint against Green Valleys originated during a March 2004 inspection conducted by the Nevada Department of Agriculture. The banned pesticide was in the product Greenthumb Flea & Tick Killer.

Coos Bay Line Down Again

A 120-mile rail line between Coos Bay and Eugene, Or., has again been closed due to unsafe tunnel conditions. Mills operated by Southport Forest Products, Georgia-Pacific, and Roseburg Forest Products have been aff'ected by the decision.

"We ship probably J07o of our product out on that line," said Jason Smith, manager of Southport's Coos Bay mill. Moving lumber by truck instead of rail will increase costs by lo-157o, he said, but those costs can't be recouped because the market is oversupplied and buyers won't pay.

"It's going to be very hard on us," said Smith. "The transportation is such a critical component of a mill's success. If we can't compete, we'll have to shut down."

It would take 1.131 trucks a month to make up for the lost rail service, according to Oregon's Department of Transportation, but that many might not be available. "If you have everyone needing more trucks, you can't just flip a switch and have those trucks show up," said Smith. "We're located quite a ways from Interstate 5. Sometimes it's hard to set truck companies to come here."

The line's owner, Central Oregon & Pacific Railroad, gave the mills one day's notice before shutting the line. Last winter. the line was closed for a month after a tunnel collapsed and cost $2 million to repair. Now the company is seeking a public-private partnership to pay for needed repairs, which could cost nearly $7 million. The line's nine tunnels are more than I 15 years old.

"The Coos Bay line just doesn't have enough business on it today to justify us making the repairs," said sales manager Tom Hawksworth. "Even if the money was suddenly available. it's not safe to make the repairs until after the rainy season next spring."

Rep. Peter DeFazio (D-Or.) has asked that the Federal Railroad Administration inspect the line and identify what repairs are necessary to make it safe. If the inspection doesn't support the rail company's safety concerns, the state could challenge the shutdown. "They say the line doesn't make enough money to sustain itself," said Kelly Taylor, an administrator at the Oregon Department of Transportation's rail division. "That sounds like abandonment if someone doesn't help them out."

Timber Firms Pay For Fire

Two logging companies have paid $1.5 million to Idaho's Department of Lands in connection with a 2003 fire that burned state-owned timber near Hunt Creek.

Babbit Logging, Coeur d'Alene, Id., and Stimson Lumber, Portland, Or., were ordered to pay because improperly rigged logging equipment allegedly rubbed against rocks and started the blaze. The fire burned 590 acres and took nine days to contain, at a cost of about $2.5 million.

SPI Cuts Back In Galifornia

Sierra Pacific Industries has temporarily reduced production by 25Vo and laid off workers at its mills in Chinese Camp and Oroville, Ca.

"lt's unusual that we would curtail operations, but the demand has fallen so significantly that we're building up inventory," said SPI's Mark Pawlicki. "We're hopeful and optimistic that the market will turn around in the spring."

Last year, the Chinese Camp mill was closed and converted to cedar production. The plant had been running at full capacity since December.

A Tradition of Quality StimPro" Fingerioint / i Studs and #j'G*" Dimension Lumber

Stimsan fingerjointed StimProrM studs pravide top performance and have an excellent reputation with contractors, remodelers and do-ityourselfers.

Sti mProrM fi ngefl oi nted frami ng lumber and studs meet or exceed industry specifications. Downfall is also minimized with Stimson fingefoint products, Fingegointed dimension lumber and studs carry the same design values as their solid lumber counterparts, making them 100% interchangeable.

Product Description

o StimProrM fingef oints run across the face of the stud, better aligning the edges and minimizing offset.

o Finge$oint adhesive is 100o/o exterior glue,

o Precision end triming is available up to 14 ft.

r Double end trimming is available up to 40 ft,

o All edges are 1/4-inch eased.

o Stimson finge{oint lumber has certfied exteriorjoints, stamped "CERT EXT JNTS".

Stimson

800-44s-97s8

Species

All kiln dried 19% or less.

r Fir Larch

r Spruce, Pine, Fir (SPF-s)

r Whitewood

Sizes

o2x4

o 2x6

o Lengths up to 40 ft.

Grades

o Stud

o No, 2 and Better

o Industrial Grades

Code Acceptances

Fingerjointed studs are accepted by the lnternational Building Code as well as the Model Building Codes (UBC, BOCA, Southern Standard)which are in effect in somejurisdictions.

Quality Control

Stimson fingeqjoints are continually tested to insure the bond is sound and meet exterior standards. Individual pieces are then systematically selected for load testing to assure bending and tension forces meet or exceed those for the same grade in conventional framing. Each piece is WWPA grade marked as "Certified Exterior Joints" for both vertical and horizontal applications, while improving stability.

Two Die In MillAccidents

Two workers are dead following Oct. 11 industrial accidents at two Northwest Washington wood products facilities.

At Sierra Pacific Industries. Centralia, a millworker slipped as he was trying to free a piece of lumber that had turned sideways on a conveyor belt.

Richard Lester, 32, fell onto a lower conveyor belt and became pinned between a chain rail and the belt. He was declared dead before coworkers could cut him free with a blowtorch.

Late that evening, a 32-year-old employee at Olympia Panel Products, Shelton, was found dead inside a vault pit containing 185" water.

Authorities are investigating the accident.

Laruxess Has New Chemical

Le,Nxsss Corp.'s Material Protection Products division received Environmental Protection Agency registration for a new wood preservative said to be effective against termites and other wood-destroying insects.

LeNxnss will market the 2.57o

emulsifiable concentrate, based on the active ingredient imidacloprid, under the brand names Preventol TM-CE 25 for manufacturing use and Preventol TM-CE 25 Preservative for end-use applications.

The new imidacloprid formulations can be used in wood, wood composite, and plastic construction materials.

"By offering these new formulations in addition to our existing active ingredients, we are enhancing our ability to meet customers' specific needs." said Dr. Navnit Upadhyay.

Do lt Best Hands Out Millions

During its recent fall market, Do it Best honored top performers and handed out a record $126.2 million in member rebates.

The largest rebates went to Meek's-The Builders Choice, Poplar Bluff, Mo., and Higginbotham Holdings, Comanche, Tx., for multiple stores and to Noble Sales, Norwell, Ma., for a single location.

Others receiving purchasing awards included Mountain Hardware, Wrightwood, Ca.; BTU Do it Center, Las Vegas, Nv.; Norris Do it Best Hardware, Los Angeles, Ca.; McDaniel Do it Center. Snohomish.

Wa.; All American Home Center, Downey, Ca.; Dixieline Lumber, San Diego, Ca.; Knudson Lumber, Ellensburg,Wa.; McDaniel Do it Center, Snohomish, Wa., and Power Townsend Co.. Helena. Mt.

Vendor of the Year Awards were also handed out. Scotts Miracle-Gro was selected as Outstanding Products & Services Vendor of the Year, and GE Lighting received the Overall Sales Growth Vendor of the Year Award.

Sherwin-Williams received the Collaborative Forecasting and Replenishment Award.

Departmental Vendor of the Year Awards were presented to Huber Engineered Wood Products, G.A.P. Roofing, Amerimax, Nelson Wood Shims, Master Lock, Custom Building Products, Irwin Industrial Tools, Shop-Vac, Moen, GE Lighting, and Black & Decker.

"Our vendors are a big part of why our member-owners are able to serve their customers so very well," said Quent Ondricek, v.p.-LBM. "They bring exciting new products and services that allow us to compete favorably in a global market."

Depot Softens Newest Stores

In its continuing quest to woo female shoppers, Home Depot opened design centers in Concord, Ca., and Charlotte. N.C.. in late October. The new format is the latest hybrid between the chain's regular warehouse stores and its upscale Expo design centers.

Landscape

Supply Closing Home Depot will close

Landscape Supply's l1 stores by Nov. 19. Five stores are located in the Atlanta. Ga.. area, and six in the Dallas-Fort Worth, Tx., area.

"We think the resources being used on Landscape Supply would be of more benefit to our core retail stores," said spokesperson Ron DeFeo. The chain recently sold its wholesale supply division, HD Supply, and plans to spend $2 billion this year to upgrade its retail operation.

When Depot launched Landscape Supply in 2002, analysts expected the format to be expanded to other Sunbelt cities.

"Imagine a Home Depot designed by a woman," said Jason Feldman, senior director of merchandising. "Nothing about this store feels like the Home Depot you know today. It feels much more like a studio environment."

He admitted that female consumers

Each store covers 5 to 7 acres, including a greenhouse area and a large outdoor space for shrubs and trees.

As Depot continues to cut back and focus on its original warehouse stores, many wonder if the upscale Expo Design centers are next. The number of stores in the chain has been pared to 34, and features such as high-end flooring and bath merchandise can now be found in some Depot stores.

However. DeFeo denied that Expo is in any danger. "We think the current number is appropriate. We don't have plans to expand the format, but there are no plans to close it, either."

have always been a challenge for the chain, which has tried to soften its image for women but still appeal to contractors. The two new centers will test what happens when the company separates the two customer groups.

"The only reason a contractor would come into these stores is if a customer asked him to pick up tiles or countertops or something like that for a project," said Feldman. "Otherwise, if a contractor walks in and thinks this is a Home Depot, he's going to turn around and walk right back out. The beauty is, we've put these two stores a couple of miles away from the regular stores, so we've still got something nearby that focuses on the core do-ityourselfer and the pros."

Visitors to the new centers won't find lumber and building materials or heavy-duty power tools. Taking their place will be an 11,000-sq. ft. furniture showroom by Home Decorators Collection- a catalog business that Depot acquired last year. A similar arrangement was tested on a smaller scale at an urban-format store in Chicago,Il.

"The results in Chicago have been so good that we said, let's do it on steroids in Charlotte and Concord," said Feldman. "A consumer who's looking to refresh and upgrade the d6cor in her home is going to want to look at fumishings, too."

Other improvements include a home organization area with decorative storage boxes and shelving. A garden shop will sell orchids, pottery, and what Feldman called more "sophisticated" products. Kitchen and bath showrooms will carry a much broader assortment of goods than regular Depots.

"We're going to have all the price points in one store," he said. "We've gotten a lot of feedback from customers and they've essentially told us, 'I may want to buy a $6,000 refrigerator or an $89 faucet, but I want to be able to buy them in the same place."

The big question is whether Depot will open additional female-friendly stores. Expo Design was once slated for major expansion, but has been cut back to just 34 stores. "It's two stores and two stores only right now in a couple of markets where we thought it would make sense," said Feldman. "Everything we're testing right now is really about finding out what works in a particular geography, and seeing if there are pieces that work that we can transfer somewhere else."

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Construction Downturn To Slow

U.S. construction starts are expected to decline 2Vo next year, to $614 billion, following an estimated 8% decline in 2007, forecasts McGraw-Hill Construction.

"The credit crunch that emerged at mid-2007 continues to be a major concern for construction and the overall economy," said McGraw-Hill's Robert A. Murray. "As a result, we're now predicting downturns in the previously resilient multifamily and commercial segments, as well as continued weakness in single-family home construction."

Single-family housing will weaken further, given the large inventory of unsold homes and diminished loan availability to homebuyers. A 3Vo drop in dollar volume is expected in 2008, corresponding to another 6Vo decline in the number of units.

Multifamily housing will slide 87o in dollars and llTo in units, following steeper declines in 2001 . Condominium development is being dampened by greater scrutiny from lenders as well as reduced homebuyer demand.

Bright spots include the rise of green construction practices, favorable financing from public sources and publicprivate partnerships, and moderate growth in transportation projects.

NLBMDA Shakes Up Management

National Lumber & Building Material Dealers Association, reportedly awash in red ink, has hired a Washington, D.C.-based association management firm to replace president Shawn Conrad.

Russ Snyder, senior v.p. of client management at management firm SmithBucklin Corp., will serve as interim president, and Henry Wallmeyer, NLBMDA director of membership and operations manager, will control day-to-day operations of the office.

(916)966-0676

In the wake of the moves, rumors ran rampant that federated associations were considering jumping ship and possibly banding together into a competing national organization. Phone calls to several association executives revealed no associations that had pulled out. In fact, one group-Mid-South Building Material Dealers Association-just rejoined NLBMDA. Ironically, MBMDA head Bob Hellenthal attempted to form his own national association a few years ago after dropping out of NLBMDA.

During NLBMDA's recent conference, Harold Baalmann, B&B Lumber, Wichita, Ks., succeeded Steve Kelly, Kelly Brothers Lumber, Covington, Ky., as chair. Chair-elect is Paul Hylbert, Pro-Build Holdings, Denver, Co.; vice-chair Dan Fesler, Lampert's, St. Paul, Mn.; treasurer Linda Nussbaum, Kleet Lumber, Huntington, N.Y.; MSC chair John Somerville, Dow Chemical, Marietta, Ga.; MSC vicechair Bill Pohl, Princeton Delivery Systems, Canal Winchester, Oh.; government affairs committee chair Joe Collings, Ferguson Lumber Corp., Rockville, In.; BMAE chair Richard Seely, Michigan Lumber & Building Materials Association, and at-large directors Geoff Brown, The Lumber Yard, York, Pa.; George Lester, Lester Group, Martinsville, Va.; Bob Magbee, Magbee Contractors Supply, Winder, Ga., and Bill Van Sant, Oklahoma Home Centers, Guthrie, Ok.

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Fire Strikes New Mexico Yard

Officials are investigating the cause of a late-night fire that destroyed a portion of Construction Supply, Bloomfield, N.M.

The Oct. 2'7 blaze inflicted about "5oo/o damage" on several lumber and storage buildings, but did not reach the main building. "The primary building, which houses the offices and the hardware portion of the business, sustained no damage," said local fire chief George Duncan.

Producers May Buy Railroad

Nine Oregon shippers who are trying to force the Willamette & Pacific Railroad to reopen a rail line have dropped their lawsuit and are negotiating to purchase the 23-mile line.

Last summer, the shortline operator stopped service on the stretch of track that runs south from Corvallis to Hull-Oakes Lumber's mill in Dawson, Or., calling the line unsafe and saying that the low freight volumes did not justify the cost of repairs.

Hull-Oakes, Chintimini Land, Western Pulp Products Co., and a half-dozen farms that use the line filed suit in August against the rail-

road, its parent company, and Union Pacific Railroad, which leases the tracks to W&PR.

ldaho Yard Into Hardware

Kuna Lumber, Kuna, Id., has purchased the inventory of Steve's Do it Best Hardware in Nyssa, Or., and is remodeling 4,000 sq. ft. to showcase hardware, paint, plumbing and electrical supplies, and sporting goods.

"We always knew we wanted to do it; the opportunity just came along," said Dave Browning, who started the company in 2O02 with his wife and son.

"I guess I'm a little nervous to bite this off in the middle of a slowdown," he said. "But really there's not much risk for us. Even in a slowdown, people have to maintain their house."

Hayward Floats Parade Class

Hayward Lumber, Salinas, Ca., recently hosted a workshop on building a parade float for the city's firstever Holiday Parade of Lights.

The workshop, led by parade expert Ray Pulver, was held in the yard's conference room. Each of the l8 participants received a one-page list of what parade-building supplies

could be purchased at Hayward Lumber. The yard also will be listed in the parade program as a sponsor.

"We're always looking for anything that will generate business," said store manager David Burton. "It was a very inexpensive way to get our name out."

Spiffy Thief Strikes Boxes

A nattily-attired man with a large cross pendant and Bible has been accused of shoplifting more than $10,000 of merchandise from Home Depot, Lowe's, and other stores in Victorville, Ca., and then returning some of the items without a receipt.

"He was well-dressed and wellspoken," said Deputy Kristina Winegar. "We had clerks tell us, 'We saw the cross and thought he was a godly person; we didn't question it."'

Authorities said that Dennis Chambers and his wife. Jaanna. were arrested and their house was searched after loss-prevention officers from at least 10 local stores started working together. The search revealed a closet filled with business suits and other merchandise.

Marijuana and hallucinogenic mushrooms were also found.

A:: LP, wE ENGINEERED ouR LP Sor-rnStent I-Jorsrs ro an 66% wIDER THAN YOUR TYPICAL LUMBER JoISTS. Tner MEANS MORE STABLE FI,OORS WITH LESS BOUNCE AND FE-WER HEADACHES FOR BUILDERS.

Tsar:'s wHAT wE Do. Wn uexr rHE PRoDUcrs THAT BUILD THE HOMES, SIMPI-Y BETTER.

Weyco EWP Mills Cut Back

Responding to an oversupplied market. Weyerhaeuser Co. has cut back production at its LVL facility in Junction City, Or., and its I-joist plant in Eugene, Or.

The reductions began November I and will last until at least April 1. Both plants have reduced hours, resulting in a total of 103 temporary and permanent layoffs.

Activant Teams With Majure

Activant Solutions Inc.'s Hardlines and Lumber Group will integrate Majure Data's RF Navigator warehouse management system (WMS) lvith its Activant Falcon softwarc.

Set for release in first quarter 2008, the interface between the trvo systems will provide Activant Falcon users with ready visibility into their warehouse operations and advanced tools for improving shipping accuracy.

For LBM dealers. the warehouse has long been the "black hole" of the customer order process. While Activant software is designed to improve customer order management operations, the benefits of an effective ERP solution could easily be lost if rvarehouse oersonnel are not able to

quickly and accurately pick and ship orders. This capability is especially important for LBM dealers because of their complex mix of products.

Dealers selling moulding, for example, often must track the number of units sold, as well as the length of each piece. Special order itcms are common. The continuous visibility offered by WMS on the status of such items enhances special order management and control.

With the combined solution. the Activant software takes rtrder information from the sales department and transfers it into the Majure system in the warehouse-where, through wireless handheld terminals, WMS guides the material handlers to accurately pick the ordered items. The information transmitted to the handheld terminal tells the fbrklift drivers what to pick, how many to pick and where to go to pick it. At each location, the drivers scan the barcode on the item to verify that they are at the right place and that they are picking the correct item. As soon as an item is picked, the information is transmitted to the Activant software.

In addition to order picking, the solution will utilize wireless handheld

terminals for receiving, put-away, material moves, shop/assembly, cycle counts and truck loading procedures.

With a WMS. dealers can run their warehouses more efficiently, with ferver people and fewer errors. Majure's studies indicate that LBM dealers rvho adopt and fully implement its WMS can improve shipping to approximately 99.9Vc' accuracy.

"Over the past fer,v years, we have seen WMS go from a 'nice-to-have' system for LBM dealers to a technology that is a 'must have' in order to stay competitive," said Jason Hudson, Majure business development director.

Oregon Investors Buy Lands

Campbell Group LLC, Portland, Or., has acquired 1.5 million acres of timberland from Temple-Inland, Austin. Tx.. for $2.38 billion.

The sale is part Temple's plan to break three of its divisions into separate public companies and sell off its timberland unit.

Most of the purchase was made in notes due in 2021 , which Temple will pledge as collateral for a non-recourse loan. Loan proceeds, after costs associated with the land sale. rvill be about $ 1.8 billion.

Ti",i, y".r, Hampton Affiliates has launched a new strategic growth initiative that will add a new product line to our existing capabilities and increase our production volume by over 300/0. The company has expanded into Canada with the purchase of Babine Forest Products and Decker Lake Forest Products, both producing a wide range of dimensional and specialty items in Spruce-Pine-Fir. The mills are located in Burns Lake. British Columbia. and have a combined annual capacity of 375 mmbf.

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Willamina Lumber Company, currently ranked number one in lp '- ' overall single-site lumber volume for U5 manufacturers. This ,

expansion makes Hampton the eighth largest lumber producer 11s;i.i4

in North America with an annual capacity of 2 billion bf. In addition, the company's trading and distribution operations make available to our global customers another 1.5 billion bf of lumber and panel products, supported by Hampton's highly efficient transportation, reload and just-in-time delivery services. It's now easier than ever for existinq as well as new customers to get the right selection, in the right volume, for the right il ! price, and delivered at the right moment. Contact us to heor more about our expanding product Iine.

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L.A. Hardware Store Goes Green

Virgil's Hardware, Glendale, Ca., is now stocking "Green It Yourself" products distributed by Plan-It Hardware. San Francisco. Ca.

"I think if it takes too much effort people are turned off, so the easier we can make it fbr people to find healthier options for their environment, the better fbr everyone," said Chris Reilly, Plan-It marketing director for Southern California.

A division of distributor California Hardware. Plan-It has a full-time research team that evaluates how green a new product really is in terms of energy savings and toxicity. The greenest ones get an official seal of approval and are recommended to customers like Virgil's, making it easier for managers and consumers to find green choices.

"If you only knew how many (green) items are on the market right now, it's crazy," said assistant store manager Angela Becerra.

At Virgil's, recommended products are identified with a "greener choice" sticker and grouped together in a single display for better recognition. Green products are also dispersed among traditional products in the aisles, according to Justin Myers, who heads the electrical department.

"We want people in the community to know their options as consumers," he said. "We try and put the options next to each other so you can compare price point, hours, and everything there."

For example, many customers come into the store looking for energy-efficient light bulbs, but long-time shoppers may still buy the less expensive incandescent lights. "We'll try and influence customers to buy the green one, to show them at least the options," said Myers. "If you give them the options, a lot of people will prefer the new technology."

Customers have always dictated what is carried in the store, said manager Delaura Kurkowski. "They are asking for and purchasing more non-toxic, eco-safe, and resourcesaving products."

Virgil's commitment to going green extends beyond products offered. Over the past 12 years, Virgil's has recycled tons of cardboard, plastic, and aluminum commodities. Employees have also stopped using Styrofoam cups.

VIRGIL employee checks "Green lt Yourselt" products on an end cap.

A load of l2 plywood is made ready for shipment from [agle's Harrisburg, Oregon plant.

News Briefs

(Continued from page 22) starts fell l}.IVa in the West ... permits decreased 7.3Vo to a rate of 1.23 million units...

Fiber Composites, LLC, New London, Ct., has completed its acquistion of the WeatherBest composite decking and railing business from Louisiana-Pacific Corp., Nashville, Tn., including a Meridian, Id., manufacturing facility and the WeatherBest brand

Dow Building Solutiorzs will close its foam insulation plants in Tracy, Ca., and Texarkana, Ar., and upgrade plants in Charleston, Il., and Pennsauken, N.J.

The Chamberlain Group has acquired access control provider PTI Integrated Systems, Scottsdale. Az.

Weyerhaeuser Co., Federal Way, Wa., agreed to sell its Customer Service Center in Green Bay, Wi., to Weekes Forest Products. St. Paul. Mn.

Arch Wood Protection's Wolman AG, the non-metallic preservative used in Wolmanized L3 Outdoor wood, has been recognized for use within the Hallmark Certification of Window & Door Manufctcturers Association ..

Georgia Pacific Gypsum and Quiet Solution have partnered to produce a paperless, soundproof drywall panel named QuietRock DensArmor Plus 528

Lumber Liquidators expects to raise about $43.5 million in an IPO of I 1.5 million shares ...

Parksite Plunkett-Webster now distributes Weathe rBest composite decking and railing products from Fiber Composites

Laticrete will open a new 80,000-sq. ft. plant in January, in Lebanon, Or., to manufacture ceramic tile and stone installation systems ...

Louis & Co., Brea, Ca., was honored as Kerfkore's largest volume distributor ...

East Teak Fine Hardwoods, Dallas, Tx., has launched a new site, www.certifiedteak.com, to market recycled teak products

Versatex added an interactive module, www.pvctriml0l.com, to its website, to present instructions for installing PVC trim

Allied Building Products Corp. is awarding free gas for one year to five construction industry professionals who win a contest on its website.

Send us your news!

Have your recent expansion, Promotions or other company changes published in the next issue of The Merchant Magazine.

Just Fax your news to 949.852' 0231 or send by email to kdebats@ building-products.com.

(a free service)

What makes our new Cl.earSide" V-Rustic Siding a smarter chotce for siding?

For starters, tt's manufactured with a durabte Douglas fir LVL core specifically engineered to minimize warping shrinking and spLitting. Wrapped with a sturdy, uItra-smooth overLay on atI exposed sides for crisp, trouble-free surfaces al.[ over. And then factory primed for faster, more retiabLe on-site finishrnq.

That means rt machines east[y Finishes faster with [ess paint. Reduces [abor costs. And remains straight fLat and trouble-free for years to come. lt even comes with a iimited '10-year warranty. How smart is that?

Vegas Gets Compound Plant

CertainTeed Gypsum broke ground last month on a new joint comPound plant in North Las Vegas, Nv.

By late next year, the 100,000-sq. ft. facility will begin manufacturing ready-mix joint compounds, settingtype joint compounds, and Powdered textures.

"Our customers in the Southwestern United States have asked us for a full interior finishing system consisting of ProRoc-branded gypsum board, joint treatments and tapes," said George Wattman, general manager for CertainTeed Gypsum Finishing Products.

CertainTeed currently operates a gypsum wallboard plant in Las Vegas and selected the city for a second facility because it will provide customers in the Southwest region quick access to a full-line offering of wallboard and finishing products. In addition, the proximity of two facilities will allow the company to Provide both product lines in a single shipment.

"This will be our second joint compound plant in the U.S. and builds upon the very successful entrY and growth model we've established in the

Pacific Northwest at our Kent, Wa', facility," noted Don Moses, president of CertainTeed Gypsum.

Book Traces HistorY Of Aloha

A new book chronicles the long history of Aloha Lumber Co., which operated one of the more successful smaller logging operations in Grays Harbor County, Wa.

Aloha Lumber Co. 1906-2006 was penned by longtime employee and former owner Dick Sterling. He and his wife now live in Great Falls, Mt., but came back in early September for book signings at the Museum of the North Beach, the Hoquiam LibrarY, and the Polson Museum.

From 1955 to 1968, the author was a timber cruiser for Aloha Lumber. From 1963 to 1968, he was a forestry consultant for the City of Hoquiam watershed. He owned the mill from 1980 to 1984. until he sold it to Phil Roderick, who died in a car accident last year.

The mill was formally incorporated on Oct. 13, 1906. As manY as 400 were employed there during World War II, but the mill averaged about 200 workers during most of its history. Sterling said that its best years were

probably in the 1950s: "Because there was a gigantic housing market then and mill owner Paul Smith was a marketing genius." During this period, the millproduced up to 50 million bd. ft. a month and cut about 50,000 logs a day.

Through the use of 15 maPs and 180 illustrations, Sterling provides an insight into the area, the roads, the bridges, and the townspeople. He used a wealth of resources, most notablY former owners and employees, company joumals, archives at the University of Washington, and newsPaPer accounts.

ln his introduction. Dan Williams of Hoquiam, Wa., says little has been written about smaller logging companies. such as the 58,000-acre Aloha Lumber Co., but Sterling "has given us much more. Beyond the vivid Portrayal of the men and women who comprised the company and the community, he has taken us back into the history of the area-into the geology, the topography, and the total environment of the area- including the exploration and the record ofthe native people who were there first. No one is better qualified to tell that story than Dick Sterline."

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ways to redefi,*"g.",sales

A S a salesperson. you're trained to lLask customers what theY wanl in terms of your product offerings. That's wise advice. Horvever, if You only ask customers what theY lvant and then give it to them, you're missing the biggest opportunity that has

ever come in front of you.

Clients always under-ask because they don't knorv rvhat is possible. Think about it...No customer ever asked for a fax machine. They didn't know it was possible to send printed communication via a Phone line. No

customer ever asked for an iPod. They didn't knorv it .'vas possible to listen to music without some sort of CD or spinning device. PeoPle don't ask for things that they don't know exist.

Technology allows us to do things that were once thought impossible. So for salespeople, while it is important to ask customers what they want and then to give it to them, realize that by doing so you're merelY comPeting rvith your competitors. Chances are your competitors are asking customers the same questions, theY're getting the same answers! and they're providing the same solutions. When that happens. you end uP comPeting on price and not differentiating yourself.

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Therefore. the Golden Rule of sales is to give people the ability to do what they currentlY can't do but would really want to do if theY onlY knew they could have done it. That's so much more profitable than simply giving clients what they ask for.

The key is that you have to look a little bit further into your customers' oredictable needs bascd on where ih.y'.. going. Only then you can see unmet needs and new opportunities.

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pine products in New Zeolond. Dis- tlloutDINcs tributing our cleor boords, mouldings, LIFESPAN treoted wood, ond lumber to the North Americon morket through our proven ond completely integroted H' '

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lorgest FSC certified pine plontotion {orests in the world.

At this point, many salesPeoPle might say, "But I don't create the products; I just sell them. How can I deliver',vhat customers don't know is possible'?" The ansr'ver lies in how you can redel'ine various aspects ()f' your off'ering. Consider the following:

Redefine the Product

Today, it's not about high-tech: it's about higher-tech. In other words, it's not about your product; it's about how your clients use it. For example, currently several hospitals are using the Wii video game system to do rehabilitation for people injured in war. Why? Because with a Wii, you hold the controller and make lif'e-like movements to control the game. Hospitals have taken a kid's game and redefined how it's used. That's an example of using an existing product in a new waY' Analyze horv people have alwaYs

(Plettse turn to Pag,e 56)

TRIM V FASCIA

n,.ol-0,"*'IlETCHER'

wooD sotuTloNs

3oAnDS

Sanctuary High Performance Decking is available in 5 popular colors and, in addition t0 the traditional square edge is also available pre-grooved for use

wrth the PhantomrM Fastener. No Decking Installs Faster, No Decking Looks Better. Sanctuary High Performance Decking, a fiberon(e product

For more information c0ntact your local fiberono distributor or Cou rtnie Barringer at courtnieb@fibercom posrtes,com 0r call

04-463

Put Your Business 0n Auto-Pilot

( Continued from page 48 )

the company's future growth, or enjoying time away from the business.

Once you realize what you should be doing on a regular basis, you can let go of day-to-day tasks and employees can easily start to take over.

List your current activities.

Next, keep a journal of how you're spending your time at work. What specific tasks are you doing? How much time are you spending on technical aspects of your company? How much of a hands-on role are you taking? What percentage are you spending on strategic activities? You'll likely find you spend the majority of time doing similar tasks you pay employees to do.

Why? Because most small business owners started as technicians in particular fields and decided to open their own firm or business. So while they're skilled and comfortable in their trade, they lack business management and leadership training. For most small business owners, evaluating on paper the time spent on technical tasks rather than business-building activities is a real eye-opener.

Delegate effectivety.

Delegate tasks not related to the list of what you should be doing, created in step one. This means giving the employee clear directions and being sure he or she understands what you want done, how much time and money it should take, what processes should be followed, and when the task is due. Make yourself available for questions, but do not have hands-on involvement. Follow up with the person in writing, reiterating the task and all the details. When you complete this step, you will have systemized your first process !

Get everyone involved.

Putting processes in writing applies to everyone in the company. It needs to happen laterally as well as vertically, like creating an owner's manual for each position. Have each person list all tasks his or her position is responsible for. Consider that someone in the payroll department would detail how to run payroll, how to pay withholding taxes, how to process 401/k deductions, etc. The goal is that if that people suddenly quit, another person could pick up the process description

sheet and perform the job. Every person, from the c.e.o. to the janitor, needs to go through this process for every aspect of their job.

Be sure the written processes are based upon a job description and not based upon a person. Systems cannot be based on what Bob does, it needs to be based upon the job description for Bob's position. That way, iflwhen Bob leaves the company, you can replace him easily.

Share systems company-wide.

Once something is written down and systemized, put it into a policy and procedure manual. Also, have people cross-train for different positions so they can step in when needed, even if it's just to help out during a crunch time. Finally, since all the tasks are tied to specific job descriptions, make sure they're tied to that person's performance evaluation. That will ensure that the task is done according to the prescribed system.

Systemize company success.

While the process of creating sys-

Tenon Ups Share of Southwest

Tenon Ltd., Auckland, N.2.. has increased its ownership of Southwest Moulding Co., Dallas, Tx., from 5l%o to 75.5Eo.

"Southwest is a strong natural fit with our existing activities," said Mark Englington, Tenon's c.e.o. "It is extremely well run by a very experi-

tems company-wide may seem overwhelming, you don't have to do it all at once. Systemizing your business is a long-range project, not something you can do quickly. Start by systemizing one position and then move on to another. Once you have one thing systemized, be sure to re-evaluate your system on an annual basis to see if you need to make changes based on new events, information or regulations.

Taking the time to systemize your company will lead to more effective leadership and a more efficient business. You'll be able to focus on thinss that will make your cornpuny -oi" successful and reap the profits from your business if you're not physically there. Begin the systemization process today, and you'll enjoy the rewards for years to come.

- Alan Bayham is a business coach and president of Bayham Consulting, providing leadership, management and marketing training for over 30 years. Reach him at ( 504 ) 259-8682 or abayham@ bayhamconsultinp.com.

enced management team, and the business is performing to plan in what is a very tough regional market."

Incorporated in 1952, Southwest operates a manufacturing division and distributes millwork to dealers, millwork shops, and home centers. Tenon first invested in the company in 2005.

onqls

Jack Lawrentz, owner of Westwood Lumber Co., Moraga, Ca., will close the l6-year-old business and retire this month after 46 years in the industry.

Michael Cooley has been promoted to chief operations officer at Cooley Industries, Phoenix, Az. Dean Winters is now general manager, and Ross CooleY will handle national sales development and product development.

Robert Massett, ex-Western Rebar Consulting, is now an engineered wood tech at Capital Lumber, Tacoma, Wa. Bill Young, exUniversal Forest Products, now provides product and sales support in Chino, Ca. Tracy Tomei is now an account mgr. in Healdsburg, Ca.

Mike McKanna has joined the sales staff of Spokane Forest Products, Spokane, Wa.

Randy Lilyengren, ex-Lumbermen's Buying Service, is new to sales at Coos Head Forest Products, Eugene, Or.

Aaron Anderson, ex-Pope & Talbot, is now v.p.-sales & marketing at Riley Creek, Sandpoint, Id., succeeding Paul Jorgensen, who retired Oct. 3l after 38 years in the industry.

Arnie Didier has retired as v.P. of Riley Creek Distribution, Denver, Co., and is now director of marketing & sales for the RockY Mountain Elk Foundation, Missoula, Mt.

Jane Uylake has been promoted to real estate mgr. for Pro-Build Holdings Inc., Denver, Co. Susan Plaza is now v.p.-total rewards.

Matt Dierdorff and Terry SimPson, ex-Ochoco International, are now with MFP of Oregon, Tualatin, Or.

Dinny Waters, ex-Activant, has relocated from California to New Hampshire to join Progressive Solutions Inc., Vancouver, B.C., responsible for bisTrack sales and account management in the Northeast.

Bill O'Banion is now in sales at Mason County Forest Products, Shelton, Wa.

Michael Dam has joined the sales team at Sunset Forest Products, Beaverton, Or.

Jim Hannan, president and chief operating officer, Georgia-Pacific Corp., Atlanta, Ga., has been Promoted to c.e.o. and president. He replaces Joe Moeller, who has returned to parent Koch Industries as vice chairman and a director. Dave Robertson, Koch president and c.o.o., assumes the role of G-P chairman from Moeller.

Dennis Scott has joined TyPar Weather Protection SYstem as western regional sales mgr. He is based in Salt Lake City, Ut.

Jim Partridge, Bonsal American, has been named territory sales mgr. for ProSpec in Washington, Oregon, Montana, and Idaho.

Dave Heine, ex-Do it Best, has joined Bluelinx, Atlanta, Ga., as a national account executive.

Jim Fielder, v.p. and general mgr., Simpson Door Co., McCleary, Wa., will retire in July 2008 and be succeeded by production mgr. Ted Jones.

Jay Banister has been named national green program mgr. for Eagle Roofing Products, Rfalto, Ca.

Michael G. Kahn has been appointed president and c.e.o. of DDK Industries, Los Angeles, Ca., and c.e.o. of its Opera Paint Co. division. Philippa Radon is now v.p. and chief colorist for Opera Paints.

Jeff Sturlaugson, Overhead Door Corp., Seattle, Wa., has been promoted to western regional mgr. for Genie Pro Sales Centers.

Kevin O'Meara has resigned as president and chief operating officer of Builders FirstSource, Dallas, Tx., the chain he co-founded in 1998.

Anne Frazer, v.p.-inventory planning & replenishment, and Roger Adams, chief marketing officer, have resigned from Home Depot, Atlanta, Ga. John Ross, v.p.-advertising, will serve as interim head of marketing.

Mark Ayers has been promoted to v.p. of marketing for the Masco Builder Cabinet Group.

Carlos Cardoso, president and c.e.o., Kennametal, has been elected to the board of directors for Stanley Works.

Chuck Anderson was named codes & industry affairs mgr. for American Architectural Association.

Les Weed is now in charge of antidrug programs at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

PopTal Files Bankruptcy

Pope & Talbot, Portland, Or., has filed in Canada for bankruptcy protection from its creditors. Most of the company's operating assets are located in British Columbia. although it also has mills in Oregon and South Dakota.

"The company will use the protections of the (Canadian courts) to provide additional time for it to continue its restructuring efforts, which include, but are not limited to, the sale of certain or all of the company's assets," according to a statement released by the company. C.e.o. Harold Stanton said "this protection is a necessary and responsible step for the company at this time."

He added that the companywhich was founded in 1849 and has about 2,500 employees-would

attempt to "continue operating as a going concern." Daily operations of the company are generating enough cash to allow it to continue operating while under court protection from creditors.

This latest action was blamed on low lumber prices, the strong Canadian dollar, and high prices for wood chips and sawdust. The company ended the second quarter with $354.9 million in debt, and was in default on its senior secured credit. In August, the company's shares were delisted from the New York Stock Exchange.

Three of its B.C. sawmills were closed for two weeks in October, to reduce inventories of unsold lumber products. Stanton said the "shutdowns were a necessary step to ensure the company's profitability during these difficult times."

Quolity Western Cedor Products

Ways To Redefine Sales

(Continued from page 50) used your product and think of other creative applications. That's how you redefine your product so it adds more value and does what no one ever thought to ask.

2. Redefine the Customer

If you sell your product to a specific market segment, can another tYPe of customer use it as well? For example, let's say you sell software to independent insurance agents, and your software helps them run their office, track their clients, and calculate their commissions. Could that same software work for another industry, such as real estate agents? It probably could, and with minor modifications, if any. That's because insurance agents and real estate agents have similar functions and issues.

In business, we have what's called the "bleeding edge" and the "leading edge." The bleeding edge is when customers buy something new and then have to "bleed" in terms of try-

ing to get the Product to work for them. You can help your customers lead without bleeding by looking to other industries that have already used the product in higher-tech waYs. These industries did the bleeding already and are now getting great returns. You can then aPPIY that knowledge to an industry that never thought of using your product.

3. Redefine the Value You Deliver

Remember that you're not simPlY selling a thing; you're selling the competitive advantage of the product. In other words, part of your job is to help your customers use the product you sell to gain competitive advantage. When asked, most salesPeoPle say few of their customers fully use every feature of their product in the most efficient manner. Most customers use l07o to 50Vo of a product's full functionality. They are underutilizing the very product that is supposed to make their business run smoother and more efficientlY' No wonder so many companies are competing on price. No wonder margins

are slim. All salespeople are doing is selling a "thing." They're not selling a competitive advantage. They're not differentiating the products they're selling.

Therefore, create guidelines to help your customers maximize use of the product you're selling. Most companies simply sell the product, deliver it, and leave. It's then up to the customer to figure out specific guidelines for maximizing use of the product.

But don't stop there. Go beYond the guidelines and actually help customers figure out how to gain an advantage by using the Product. Obviously you can't share secrets or proprietary information you learn about other customers. But You can help all your customers learn, understand and implement all the functionality of their purchase to increase their competitiveness. By offering that kind of knowledge, you might even charge more for your product because now you're giving business value that far exceeds the value of the individual product.

4. Redefine the Perception of the Salesperson

Finally, you need to shift from being a vendor to being a trusted advisor. There's a big difference between the two. A vendor simPlY supplies a product. A trusted advisor supplies true advantage. An advisor recommends what is best for the customer, not best for the salesperson. In some cases that might mean telling customers that your comPanY is not the best fit for their needs, then recommending one of your competitors. When you seek that higher ground, your clients trust you more.

Remember that the future is all about relationships, and relationships are all about trust. So never teach people to distrust you by stretching the truth or hiding some pertinent information. To differentiate, you need to raise the bar on trust.

When you focus on redefining what you already have, you can take your current offering and leverage it to new levels. That's when You become a sales leader, not because of some fast-talking sales Pitch, but because of your commitment to Your customers and their true needs.

lnstructions: Fill in the grid so that every row, every column, and every 3x3 box contains the numbers 1 through I once. Theretore' each number in the solution will be unique in each of three "directions."

- Daniel Burrus is one of the world's leading technology forecasters and business strategists and author of six books, including the best-selling Technotrends. He can be reached at (262) 367-0949 or via www.burrus.com.

It's all about freedom of choice. Novaline") is the first railing system in the industry that has endless possibilities for clesigning a look that fits your home or iifestyle. Novaline is available in a durable, factory white finish or a natural style that can be painted or stained any color combination you choose. For a more lavish look top it off with metal accents or round balusters. Novaline assembles in minutes with no special tools and minimal hardware.

Build the dream look you've always wanted with Novaline.

The Merchant welcomes Your comments on our articles, editorials, and other facets of our publication. Send comments to dkoenig@ building-products'com, Fax 949-552-023 I, or mail to Editor, Merchant Magazine, 4500 CamPus Dr., Ste' 480' Newport Beach, Ca. 92660.

MORTGAGE CRISIS

I just read your October editorial ("Shhhh... What's Going On?," Oct., p. 8). I agree that we need to be positive, but disagree with the comment about the Fed. I feel our Problem is income. We do not have the incomes to justify the current housing prices, and incomes are not getting higher. As we transfer high-paying manufacturing jobs overseas, our average incomes hold or go down.

Years ago, the American manufacturer became more efficient, which allowed better use of labor and justified higher incomes. This has not happened recently. About seven or eight years ago, I was very concerned about how our children could afford houses. The sub-prime, undocumented loan

came along, and manY PeoPle were able to buy homes who could not before. It is great for the people that are able to hold on. Now that the banks are back to some sort of normal behavior, these loans have dried up.

One might say that the greed of investment bankers and mortgage brokers got us into the position we are currently in. (In our area, up to707o of recent loans were undocumented. This means there was no income documentation.) I see no reason to bail them out.

In our area, less than l07o of the population can afford the medianpriced home. This means wages have to go way up, interest has to go waY down (which it cannot because it is so low already), or house prices have to come way down. Contractors in our area made huge profits on their houses for the last three or four Years-as much as $100,000 on a $350,000 home. Most of this profit was based on appreciation of lots. Now that values are not rising, these same contractors are building slowly and making significantly less prolit.

I do feel we are markedlY better than we were in 1981. We had 2OVa interest rates, and no one could afford

anything. We currently have low interest. so we should work out of this once we get the horrible speculation out of the way. Prices should adjust downward and eventually reach a plateau that is sustainable.

Frank Solinsky Woodply Forest Products Chico. Ca. dubugT@gmail.com

- Puhlisher Alan Oakes resPontls:

I do agree about greedv builders. In recent months, some new honte prices have dropped $100,000 on $700,000 pricing, which shows how much thel' have been making.

I do not think the current situation helps anyone. I have heard that in Sacramento one in three homes is in.fbre' cktsure. And while I, too, do not have a ktt of sympathy for those who drove the home prices up becttuse of the removal of anv .sane credil r'hecks, I dtt have a iltt1'sm f(tr those Losing their hopes and dreamsalthough anyone who can read should have known that after a short period their mortgage was about to double.

My primary concern is that since 20022003, this whole economy has been buih around the housing industry. With that gone, it could lead to a recession, which could make it even worse. Let us hope that somehow there can be a good balance'

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Successf u I WaterProof ing

Zinsser's Watertite Products reportedly ensure successful waterproofing of concrete and masonrY.

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Watertite-Lx is a low-odor, waterproofing latex paint that resists mold and mi ldew on interior or exterior masonry walls.

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Greener Particleboard

Temstock-Free composite Panels from Temple Inland can contribute points toward both LEED and Green Globe rating systems.

The product has 1007o recYcled/ recovered fiber content and no added urea formaldehyde.

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D-l-Y Granite

Pedra granite countertop kits from BuildDirect aim to eliminate the problems associated with traditional countertop installations.

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Golden Hardwood Deckinq

East Teak Fine Harclrvoods has adde.l-Garapa Gold to its dccking line.

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Expert In Fencing

Bulftech Chesterfield priio.y fencing tiom CerrainTeeil norv features CertaGrain authentic wood texture,

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Available in natural clay and colonial rvhite. the pVC f'encing has Colorlast f'ade protection, for superior color retention.

A SureStart warranty covcrs rcpair and replacement costs, including labor, during the first five years after installation.

Niftv Sinks

Neiv sinks from Swanstone offer the advantages of both larse and small bowl bastns.

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Windows are available in double hung' casement, awning, single glider, and picture styles.

A c*lean,-seamless exterior finish can be achieved with additional exterior trims and three sill options that help cover any gaps between the old frame and new window.

The Ascend features a shallow platform for filling a pot with water, food preparation, and dish drying.

The Large/Smali Bowl sink has a builrin divider for easier food preparation and faster cleanup.

Both are made of 807o natural quartz in both drop-in and undermount models.

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Reolacement Windows

PEachtree 700 Series replacement windows reportedly are easy to install with minimal disturbance to a home's

Other options include grilles between the-glass, interior snap-in removable grilles, simulated divider lites' and optically divided lites.

An eusy-cure coating on the Low-E glass resists dirt and water spots.

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GeoDeck. First choice for long-lasting beauty, performance, and overall value.

That's because CeoDeckrM is made with Biodac@, a unique patented ingredient that makes it virtually lade resistant. Whether it's Cedar, Driftwood, or Mahogany, your customers will enloy the rich color year after year and contractors will enioy fewer callbacks. With GeoDeck's Tongue & Groove board and hollow profile, it's lighter and much easier to handle and install than other composite boards. They'll get a beautiful deck with a fastener-free look that was installed in half the time. With GeoDeck you'll have everyone looking good.

Tougher Composite Deck

XLM composite ilecking from TimberTech is designed for easy installation and maintenance.

Three

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Safe Siqht

Gateway-safety Wheelz goggles reportedly combine style and comfort with maximum proiection against dirt and debris.

been estimoting Retoil

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colors-mountain cedar, river rock. and sand ridge-are available in 12',16' and 20' leneths. in both grooved and ungrooved planks.

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The P79l I multi-hammer from Metabo was developed in conjunction with the Porsche Design GrouP.

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Installing A Sound Barrier

Soniflex FL by TEC Brands is a fluid sound barrier and crack isolation membrane for tile and stone.

The liquid product is rePortedlY easy to apply on horizontal surfaces and conforms to any floor. Unlike cork or rubberized membranes, it has

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Cellular PVC Moldings

Versatex's new cellular PVC molding line includes 16 profiles fbr everything lrom historic preservation

Roll-6ut displays from Emes Marketing reportedly save space by holding seven full-sized garage doors in a sDace no wider than 4 ft.

Doors 96" wide by 86" high can be easily rolled in and out on wheels provided.

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All 16 of the profiles are extruded, not cut. for a finish that requires paint only when a custom color is desired. Included are five crown profiles and four casing, cove, and utility profiles.

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Enviro-Friendly Insulation

CreenFiber insulation is made of 85Vo recycled natural fibers, with no fiberglass or formaldehyde.

Two Coat Exterior Prime

0ur two-coat process starts with an atkyd seaLer to bl.ock tannin migration, fottowed by a high-performance acrytic primer. The result: RESERVE quatity, inside and out.

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Made of quatity, clear, finger-jointed Western Red Cedar or Redwood, these products are naturaLLy designed for exterior use-both species are ideaI for endurinq extreme weather.

Surfacing + Sizes + Lengths

RESERVE products come in a wide range of sizes, lengths and finishes. Whether the project catts for S1S2E or S/+S, we offer lengths ranging from 16' to 20'. Pattern stock is atso avai[able.

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S IS TIYOU" FOREST- PRODUCTS

Dealing effectivety with the competition

By Dave Kahle

6 6tTrHIS would be a great business I if it weren't for the comPetition!"

Unfortunately, the existence of the competition impacts every industry, every business, and every sales Position. What the comPetition does or does not do can make a dramatic impact upon a company and a salesperson. That impact can range from squeezing you to the point where you go out of business on one extreme, to creating tremendous opportunities for growth and profits on the other.

The competition and their potential impact on your business is a fact of life. No matter how hard You wish,

you are not going to be able to make the competition go away.

While we can't change the comPetition, we certainly are responsible for our attitudes and behaviors toward the competition. What we saY and how we act about the competition can have a daily bearing on our bottom lines. An appropriate attitude and set of practices for dealing with the competition should be an essential part of every salesperson' s rePertoire.

Here are some of the salient Parts of that mindset:

A.Respe"t the competition.

Speaking badly about the comPeti-

tion, looking down on them, finding fault with them, and generally disparaging them are all behaviors that I see frequently among the companies with whom I work.

It is easy enough to understand why that is. In sales meetings we are constantly told how our Products stack up against the competition, what makes our service suPerior, whY our people are more experienced and more knowledgeable than theirs, etc.

In my position as a consultant and sales educator, I am uniquelY Positioned to test the truth of these posi-

(Please tum to page 70)

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Dealing Effectively With The Competition

(

Continued.from Page 68 )

tions. I've occasionally worked with a company, for example, and then a few years later found myself involved with one of their competitors. Or, I may have two or more competitors in one of my seminars. This unique position has allowed me the opportunity to make observations about these kinds of claims.

One of the observations I have made is this: There is usuallY some degree of truth in the details of these elements. Your hot new Product maY have several features that your competitor's does not have, for example. However, in the big Picture, Your competitor offers a sound business option to your customers. While your new product contains some features that you competitor's does not, his product probably contains some features that yours does not. And while you claim your service is superior, so does he. And your people are Probably not more experienced and knowledgeable than his. From the 10,000foot-high perspective, if your competitors were as flawed as You think they are, they wouldn't be in business and your customers wouldn't be buying from them.

In all likelihood, your competition is made up of educated, committed people who are trying just as hard as you are to be a viable oPtion to Your customers. They are trying to conduct their businesses and striving to do a good job and provide for their families through the fruits of their labors, just like you.

So, bury those attitudes of suPerioritv. and cast off that disdain for the

competition. If your customers didn't think they presented a viable option, they wouldn't be buying from them.

B. Don't believe everything you hear.

We occasionally hear comments from our customers with complaints about the competition or stories of how they messed up on some Project. This, of course, contributes to our natural tendency toward smugness bY confirming our views.

Let's take all of that with a healthy degree of skepticism. Understand that the people who share that information with us are typically those customers with whom we have the best relationship-those that we consider our friends. What we see as confidential information about the competition's weaknesses may just be the natural human inclination to tell us what they believe we want to hear. Our friends want to find common ground with us. And our animosity toward the competition provides potentially productive soil to plow.

It's been my observation that manY of those customers who are reporting on the flaws in the comPetition to you, are reporting on Your flaws to them. Don't view everything you hear as looVo accurate.

l?

L. Don't speak badlY about the competition-ever. Disparaging the comPetition. speaking badly about the company or the individual salespeople-using lir tle innuendos and side comments-all of this savs more about us to our cus-

tomers than it does about the competitors to whom we are referring. It reveals us as small minded, PettY, smug and far more interested in ourselves than we are in our customers.

This is something I learned the hard way, in one of the most embarrassing incidents in my tenure as a salesperson. I was selling a piece of capital equipment. representing a product line that was 3570 more expensive than the competition's. However, the additional cost was justified in a far superior product. The competition had been experiencing a problem with one component of its system-the batteries easily worked loose and disconnected. They solved the problem by using a rubber band to orovide additional tension on the batiery and keep it from jiggling loose.

I pointed that out to mY Potential customer-asking them how comfortable they felt with a product that was held together with a rubber band. MY customer's response? "Do you know what I don't like about you?" she asked. I was floored and speechless. "You are so negative about your competitors." I turned beet red, stammered an apology, and retreated quickly. That incident has stuck with me for decades.

At this point there is a question that naturally occurs. If I don't want to speak badly about the competition. how do I present the advantages of my offer relative to the other guy's?

Here are four options:

1. Consider the competition's offer as irrelevant.

I believe this approach to be the most effective in the long term, because it focuses on the customer, not the competitor.

If you have done an accurate, detailed job of understanding the full nature of your customer's situation, and have presented a solution that precisely meets the customer's requirements, what difference does it make who the competition is or what the competition does?

The issue is not the comPetition; it is your ability to meet the customer's needs. Your mindset, from the beginning, is not a bit focused on the competition, but rather is 1007o targeted to completely understanding the customer's requirements. The conversation is not about how You compare to the competition, but rather how You meet the customer's needs.

Obviously, this approach is not for

every selling situation. It requires a commitment on the part of the salesperson to spend time with the customer in order to fully understand his needs. It assumes that you have the ability to shape an offer that meets the customer's needs. And, it requires a more professional self-image on the part of the salesperson, who sees himself/herself as a "consultant" to the customer. If your routine is limited to asking for the technical specifications and then quoting prices, this approach is going to be outside of your reach.

In the long run. however. it provides the ultimate response to the competitor's presence in your accounts.

2. Speak in generalized, not specific, terms.

It is more effective and more professional to speak in general terms about the class of competitor than it is to speak specifically about a particurar company or person.

For example, if you want to make the point that you favorably compare to X company (that national competitor), say something like, "Generally, large national companies are more concerned about their own financial performance than they are with the needs of local customers. Since we're local and family owned, we highly value every customer, and that translates itself into more personal and responsive service." Notice, you didn't talk about the competitor. you talked about "national companies"-a general class of competition.

This "generalizing" of references to the competition provides you a means of pointing out your distinctiveness without being negative about your specific competitors.

J. Use questions, not statements.

It is far more effective to put questions in the customer's mind that he/she should ask about the competition, than it is for you to make statements about the competition. Remember, your comments are always suspect, because the customer knows that you have a vested interest in persuading him one way or the other. His observations, however, have far more validity to the customer than anything you are going to say.

Understanding that, this practice seeks to help the customer make his own observations by providing the questions that the customer should ask. For example, don't say, "y

Company is a small local company that doesn't have the systems or technology to support you in the long run." Instead say, "One of the questions you should ask of every vendor is this, 'What technology and systems do you have in place to assure that you will be able to support us for the long run?"'

/1. Ur" tables and charts.

This is a commonly used technique to point out the differences between your offer and your competitors' in a detailed and professional way. Imagine a chart, with the salient features of your offer down the first row, and across the top your company's name, followed by "Option A," "Option B," etc., with rhe options being your competitors. Then use a check mark to indicate the inclusion of that feature in each company's offering.

This can be a highly effective way

to point out the differences between your offer and the competitors. In addition to the detail that it presents. the document itself is often prepared by your company, not by you personally. That means that you are one step removed from being the source of this information. The problem with this approach is, of course, that the source of the information is your company, and you are always suspect.

Regardless of which one or combination of these approaches work for you, the discipline to deal with the competition in a professional manner is one of the hallmarks of the best salespeople. Every salesperson should think through and decide on an approach that fits.

- Dave Kahle is a consultant, trainer and author of six books and the free Thinking About Sales Ezine from www. dav e ka h le. c om/mai ling lis t. htm. H e can be reached at (800) 33 I - I 287.

lqmily lness Shirt-sleeves to shirt-sleeves

fN virtually every language there is a similar, fatalistic lview of family wealth and enterprise.

In England they comment, "From clogs to clogs in three generations." In Italy, "From barn stalls to the stars back to barn stalls...." In China, there is a comparable expression: "The first generation builds the wealth; the second generation lives like gentlemen; the third generation must start all over again."

Our statistical research supports these contentions of family-owned firms. The average life expectancy of a once very successful business being owned by the same family is 50 to 60 years. In other words, the typical family ceases to own the source of its wealth some time late in the second generation or early in the third.

Why? We've long been interested in learning the causes or reasons for "shirtsleeves to shirtsleeves." As planners, we want to understand the forces that work against family business continuity so that, perhaps, preventative efforts

By Craig E. Aronoff and John L. Ward

can be taken.

We think we have identified six major pathologies that can afflict family businesses as they pass through the generations. Certainly none of them are inevitable but they offer real challenges to most families.

Inherited wealth can destroy entrepreneurial drive. When security and affluence come too easily, the work ethic can be compromised. Success requires sacrifice-but that lesson is difficult to learn when wealth relieves the need for sacrifice. The second generation, however intelligent and educated, can fail to develop the "fire-in-thebelly" to lead a business through the demanding challenges of change.

Some families counteract this syndrome by requiring their heirs to purchase the business and feel the pressure of debt. Others gift the business but no other family cashperhaps leaving that to charity. Both approaches are based on the commitment to pass on opportunity, but not readily consumable wealth.

Successful entrepreneurs can't change personal paradigms. We read somewhere that the price of the battle for early survival is the later need for stability, control and security. We see this frequently. The formula that provides early success must change with the times, but the entrepreneur fears changing the reciPe.

We see business after business become rigid, frozen by unchanging industry definition, company mission statement, competitive assumptions, and day-to-day policies. Involvement of a board of outside directors is the best way we know to challenge historic assumptions and build the entrepreneur's courage to change.

Dominant focus on business leads to an underdeveloped family. The tensions and long hours of developing and running a growing or struggling business can sap family life. When business owners make it home, they are sometimes so tired and grumpy they discourage communication, fail to listen, and act autocratically.

While the committed entrepreneur may conserve valuable personal energy in this manner, it doesn't encourage family skill development. Family members fail to experience the process of talking through and solving problems. When the next generation successor or siblings need these skills to lead the business, they don't have them.

When we observe families where these skills are well

developed, they have usually resulted from extra special efforts by the spouse ofthe business leader.

Business financial growth can,t keep up with expanding family and rising famity lifestyles. Families usually grow exponentially-and with hopes for everimproving standards of living. Few businesses have that much perpetual potential. Moreover, the business must fund confiscatory death taxes.

Frankly, the longest lasting family businesses we know typically have limited family members dependent on the business for their financial welfare. By having few offspring per generation, developing other sources of income, working to restrain lifestyles, or using capital from other investors to expand their resources, balance can be maintained between family financial demands and the business's ability to supply funds.

n .[ amily lacks respect for the professionalism of effective management. Because family members may not be well educated in management, they don't fully understand the sophistication and art required to be a manager. Consequently, they put ill-prepared family members in important positions, fail to adequately reward key managers, or are unable to identify, recruit and retain great managers.

Whatever the reason, without effective professional management, the business is weakened. The best family businesses we know have extraordinarily high standards for their managers-whether family or not.

Busin"ss becomes an arena to act out family conflicts. Most all families have rivalries and rebels. Some have jealousies and felt injustices from long ago. All these conflicts become focused in the business. Were there no family business, the conflicts would probably still exist and be unresolved, but there would be no inviting forum to encourage perpetual reenactment.

Families need to recognize that conflicts are normal. They must work hard to manage conflict through family meetings, by encouraging personal growth and developing communication skills, and by investing in strengthening family relationships.

Of course, other forces can still snuff out multi-senerational business continuity. For the six we've discuJsed, at least there are effective antidotes. These regimens require considerable self awareness and effort. Families need powerful motivation to address and resolve the inherent challenges to healthy family business life. If all involved embrace the family business as a cherished opportunity, the effort and risk seem more than worth it.

- Craig Aronoff is co-founder and principal of the Family Business Consulting Group, Marietta, Ga.; (800) 5SI-0633. He can be reached at aronoff@efamilybusiness.com. JohnWard is a principal and can be reached at ward@efamilybusiness.com. Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.

Tnr: Mrnculxr MncaztNr: NoveNleen 2007

SIERRA PACIFIC Industries held its annual open house Sept 27 in Reddinq, Ca. (1) Terrv Sperlinq. John Sharp, Troy Ingolia (2) Charlie Dunbai Dan Pdllizzaii. (3) Apryl Pucket. Greg Moss, Ted Landrs (4) Brian Jones, Joe Honochick, Mark Grube, Karl Hallstrom. (5) Jack Chase, Jeannie & Scott MacKechnie. (6) Ken Laughlin, Elaina & Dick Jackson, Larry Rose. (7) Stefan Dicks, Jason Rovig, Larry Holguin. (8)

Wade Gregory, Jeff Lundegard. (9) Don Willard. Bill Leonard, Sean Burch. (10)-Jason Faulkner,-Charlie Jourdain. (11) Chris Merkel, Dave Connaii, Karen O'Connell, Denise Shelby, Marty Condon. (12) Loren Krebs, Mark Kleps. (13) Terry Kuehl. Mark Miller, James Danielsen. (14) Gabe Steffen, Jason Besse. (15) Barry Schneider. Joe Allotta. (More photos on next three Pages)

(More photos on next page)

SPf CELEBRATION (contlnued from previous pages)altracted hundreds of ouests. (1) Don Porter, Bob Crews, Hardy Vestal. (2) Jeff Squires, Ken Smith. (3) Doug Willis, Greg Hexberg, Chris Skibba. (4) Chris Richter, Danny Osborn-e, Darryl Lindke. (5) Mike Webster, Alice Briqqs. (6) Rock Beiden, Georqe Emmerson, Jim Matthews. (7) Jerry Farl6v, Brib Palacioz. (8) Shawn Kelley, Gordon Roby. (9) Alan Boyd. Tom-Von Moss. (10) Greg Passmore, Mike Croxlon. (11) John

Ferquson, Pete Revneke, Jennifer & Link Phillipi. (12) Molly Cossuto, Bob-Shepherd, JebAllen, (13) Ted Pollard, Todd Pollard, Lori Collins, Terrv Johnson. (14)Jill Bishop, Beth Bollen, Gina Short. (15) Bill Carrotl, Meg Malloy. (16) Claude Scott, Jeff Mathews. (17) Ted Roberts, Danette & Glenn Miller, Andy Faircloth.

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SPf OPEN HOUSE (continuedl: (1) Heather Hampton, Caiilin Stull, Christina Bog_genkamp, Angie Hoskins, Patty l-iamren. (2) Marc W.g"uef, Mike Spengler. (3) Dave Tempte, Joe Ailotta, Jake Jones. (4) Mike Carey, Bick Deen. (5) Deonn Deford. (6) Lisa Judson, pdte Ganahl. (7) Rex Klopfer, David Abbott. (8) Brian Johnson, Jim

Matt Barrass, Alan Arbiso, Jake Brosterhous.

(3) Ron May, Steve Robertson. (4) Paul Jukes, Eric Domanic, Andrew Barker. (5) Mike Drosinsky, Don Weber. (6) Christy Fuller, Lyman Emmer, Heather Eaves- (7) Tom Walthousen, Mark Michie, Charley Fiala.

(8) Chuck Bartolou, Peter Elieff , Kevin Trussell. (9) Steve Long. (10) Amy Foster, Jefl Hardy, Christa Bohnholf, Jaime Rumfola.

(11) Scott Crutchfield, Jerry Singer, Pete Lanq (12) Patrick Gillespie, Louis De los Sanibs, ,leit Everitt. (13) Charlie James. Bob Mitchell. (1a) Heidi Hutis, Deonn DeFord. (15) Claude Scott, Nathan Osborne. (16) Kim Smalley, Steve Daugherty, Skip Motta.

(More photos on next Page)

Costa Mesa Goll & Country Club, Costa Mesa, Ca. (1) Blandford Bolte, Joe Bolton. (2)

LOS ANGELES HARDWOOD Lumberman's Club

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LAHLC goll event (continued from prevrous page) ra sed funds for the Hardwood Forest Foundation. (1) Steve Meendez. John Thompson, Bon Foberts. Scott Foley. (2) Todd Borzansky, Rich Thomas Brad Sutterf eld (3) Darrell Covey, Je{f Porter, Patrick Gillespie, Marty Fox,

Crag Jordan. (4) Richard Phillips. Er k Mixa Randy Bonjeau (5) Steve Erickson (6) Brad Klima, Dennrs Johnston. Paul Pendergast (7) David D ntrno. Micuel Valencia, David Hall

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BAY AREA sustainable wood 0roducts distributor EarthSource Forest Products/ Plywood & Lumber Sales, Oakland, Ca., hosted a free celebration for its suppliers and customers, coinciding with the West Coast Green show in San Francisco. More than 800 attended the catered Sept. 21 event, which Jeatured live performances by San Francisco music legends Country Joe McDonald, Barrv "The Fish" Melton, Lydia Pense, and Rurirmage Sale, a band cbmorised of current and {ormer members of legendary Oakland funk band Tower of

Power. (1) EarthSource co-owner Marion Hunt (on violin) joined Country Joe McDonald. (2) Jefl Hunt, Steve Nicholls. (3) John Abduljaami. (4) Lany Percivalle. (5) Keith Menasco, Nikii Menasco, Jonelle Crow. (6) Sandy Purcell, Barbara Mahon, Rick Mahon, Rita Purcell. (7) Ken Menasco. (8) Felix Locher. (9) Laurel Miller. EarthSource donated 50% of the profits from selling merchandise at the event to Pachamama Alliance. Carpenters Without Borders, and Engineers Without Borders-lnternational.

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Green Building, Simplified

Green Building A to Z: Understanding the Language of Green Building by Jerry Yudelson, who has trained more than 3,000 people in the U.S. Green Building Council's LEED rating system, is $14.95 from New Society Publishers, (8OO) 567 -6772; www.newsociety.com.

Treated Southern Pine

Pressure-Treated Southern Pine, an updated l6-page, full-color guide listing all l2 preservatives approved for use with southern pine, including four preservatives new to the U.S., is free from the Southern Pine Council, (504) 443-4464, or can be downloaded at www.southempine.com.

Material Handling Training

Material Handling Training Program: Protecting People & Products, a two-hour DVD set designed to teach safe and effective material-handling techniques to yard employees, can be ordered from The Lumber & Building Material Dealers Foundation. 585 N. Greenbush Rd., Rensselaer, N.Y. I2l 44, (800) 292-67 52 ; www. nrla.org.

Engineered Wood Guide

2007 Engineered Wood Construction Guide provides recommendations for floor, wall and roof construction, along with specs for glulam, I-joists, trimboard and wood structural panels; contains a new section on structural

composite lumber, and discusses engineering principles. fire-resistant construction systems, wind-resistive roofs, and noise transmission control. It can be downloaded free at www. apawood.com or is $8 from APA, 701I S. l9th. Tacoma. Wa. 98466.

Driver Training

Delivery & Fleet Safery includes a training video and workbook that take drivers through the process of safely loading, securing and transporting building materials from yard to jobsite. It is $199 for members. $349 for non-members from National Lumber & Building Material Dealers Association/LBM Institute, 900 2nd St. N.E., Ste. 305, Washington D.C. 20002, (800) 634-8645 ; www.dealer.org.

Fastening Safety

A l5-minute video and related training materials, in both English and Spanish, covering working safely with power nailers and staplers, are free downloads from International Staple, Nail & Tool Assn.. www.isanta.org.

Installing Shingles

The 8th edition of the Shingle Applicator's Manual illustrates new products, updated application instructions, and several new flashing details. It is available in English versions on CD, DVD, and VHS, and in Spanish versions in DVD and VHS from CertainTeed at www.certainteed.com.

Resilient Flooring

Welcome Home, Domco's 4O-page color catalog of 37 new resilient sheet flooring patterns in l0 collections, is free at www.domco.com.

Rhino Deckcomposite decking and railing systems include planks, posts, rails, balusters, fascia, flashing, and joist covers. Rhino Deck is splinter free, slip resistant, and does not need painting or staining! Materials install with traditional wood tools and are covered by a 10-year warranty.

ploce

Rates: $l per word (25 word minimum) or, if contains artwork or oversized type, $50 per column inch (2-118 inches wide). Phone number counts as I word, address as 6 words. Headline or centered copy, $8 per line. Private box or border, $8 each.

Send ad copy to Merchant Magazine, 4500 Campus Dr., Ste. 480' Newport Beach, Ca. 92660, F ax 9 49 -8 52 -O23 I, dkoeni g @ buildin g-prod-

ucts.com, or call (949) 852-199O. Make checks payable to Cutler Publishing.

Deadline: l8th of previous month.

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

SALES MANAGER

Shamrock Building Materials is seriously looking fbr the right individual to head up the sales stafT at our Sacramento distribution and reman lacility. If you know the California and Nevada markets, and are willing to lead by example, this could be a financially rewarding position. We offer health and retirement benefits, and are anxious to make this venture successful. lf this sounds interesting, give me a call or send your resume. Dave Gambee, president, (888\ 742-6763: Shamrock Materials, P.O. Box 80 I 28, Portland, Or. 91280.

LUMBER TRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation. 60Vc split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox. net.

EXPERIENCED LUMBER TTTADERS WANTED.

We are Hardwood and Softwood log and lumber wholesalers with offices in the United States and Canada. We're seeking sincere, experienced lumber traders who have a view towards the long term. Work INDEPENDENTLY from your part of the country, OR from our offices in the Toronto area. This is an excellent opportunity with a well-established company. we enjoy an OUTSTANDING Rnancial and marketing reputation.

For complete details of our interesting and rewarding program, please phone 8ob Wilson lN STRICT CONFIDENCE. We'll also invite you to speak with one of our current trading partners.

Harold Earl Hinds, 89, retired fuel manager for Dwyer Lumber Co., Portland, Or., died Oct.23.

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225-4727

iLevel by Weyerhaeuser.............,.,...............,(800) 292-0704

North Pacific............

BMD....,..,...............

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

California Cascade 1ndustries............,..........(916) 736-3353

994-1393

OrePac Building Products..,.,,..,................,.,.(559) 291 -9075

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

California Lumber lnspection Service..,.........(209) 334-6956

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

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

Sournrnr Cnuonln

capital Lumber Co. ......(909) 591'4861

Creatus Wood Products..,..,(866) 974-0180 (909) 974'0180

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

Great Western Transport....(800) 347'5561 (909) 484-1250

Hampton Distribution.............,.,.,...................(949) 752-5910

Inland Timber C0.... ,,....(909) 783-0470

International Forest Products.,.,.,..,........... (909) 627-7301

Kelleher Corp. (Ontario)...........,.,..................(909) 635-1560

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

Kelly-Wright Hardwoods..........,.,.,...........,...,.(714) 632-9930

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

orePac Building Pr0ducts,.,............,..,..........(909) 627'4043

Pacilic Cedar Supp|y......,..,.,............,............(800) 969'9336

Pacific Wood Preserving.,............ .................(7 1 41 701'97 42

Pan Lumber C0...... ......(909) 627'0953

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

Redwood Empire.... ......(909) 296-9611

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

Reel Lumber Service (Riverside),.................(951) 781-0564

Regal Custom Millwork....,., (71 4) 77 6-1 67 3 (7 1 4) 632'2488

Reiiable Wholesale Lumber, Inc....................(800) 649-8859

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

StoneCastleTradinS,..,........ ...,...........(909)466'6300

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

Weyerhaeuser Building Materia|s....,...,.........(877) 235'6873 SAN DIEGO AREA

Anfinson

Pncrflc llonrtwrsr

WASHINGTON

Pacif ic Wood Preserving .,..,..................,, ,....(503) 843-2122 ,,...(800) 445-9758

Wood Treating,.,...........,............(503) 936-9976

Metal Works... ......(800) 523-5297 (503) 668-8036

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

Weyerhaeuser Building Maleria|s..............,,,,(077) 235-6873

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

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

Johnson Lumber Co., D.R,,.,,.,................ ...,..(541\ 874-2231

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

Riddle Laminators.. ,.....(541)

RocrY Moumrum

EUGENE / SPRINGFIELD

American Laminators (Drain)............,..,.......(541 ) 836-2000

Cascade Structural laminators...........,.,.,.....(541 ) 726-9836

Coos Head Forest Products................,.,.,.....(800) 382-3398

Gemini Forest Products.........................,.,.,...(541 ) 485-7578

J.H. 8axter......,..,.,,. .,,.,.,(541) 689-3901

Lumber Products.,... .,.,..{541) 687-041 1

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

Rosboro Lumber...... ......(541 ) 746-841 1

Western Woods, Inc.........................,.,..........(800) 822-91 57

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

MEDFORD/GRANTS PASS

Allweather Wood Trea1ers..........................,..(000) 759-5909

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

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

Norman Distribution Inc.................,,..............(541 ) 535.3465

Pacific Wood 1aminates,.,............,,,.......... ....(5/l\ 469-4iT7

Swanson Group Inc....,..............,,,,................(541) 956.4300

Waldron Forest Products..................,,...........(541) 474.3080

McMINNVILLE / CORVALLIS / SALEM

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

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

Mary's River 1umber....................,,..............,(800) 523-2052

Royal Pacif ic Industries..............,....

Weyerhaeuser Co. (Albany)............

GREATER PORTLAND AREA

......(503) 434.5450 ......(5411 926-7771

Adams Lumber, |nc.......,.....(800) 298-4222 l10g]| 245-1796

Bodyguard...,........... .,....(503) 643.0800

Collins Pine C0,,..,.. ,.,.,.,(800) 758-4566 (503) 227-1219

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

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

LEWISTON

Bennett Forest Industries (Grangeville).........(208) 983-0012

Coos Head Forest Products.......,..,..............(866) 590-0088 (208) 799.3388

MONTANA

BILLINGS

Boise Distribution... ......(406) 652-3250

Lumber Products.... ......(406) 522-0435

Weyerhaeuser Building Maleriats,.................(877)

For more infomation Jion odt'ertisers, use the Web sile in brackets. Adams Lumber

Ainsworth Lumber [www.ainsworth.ca] ....'..........................17A

Allweather Wood Treaters [www.allweatherwood.com]........79

Anfinson Lumber Sales [www.anfinson.com]......................6'

Fletcher Wood Solutions [www.tenonusa.com] .......................50

Fontana Wholesale Lumber [www.fontanawholesalelumber.com] ..........80

Forest Grove Lumber [www.fglco.com].... ,a

Fred C. Holmes Lumber Co..... ..............83

Gemini Forest Products [www.geminiforest.com].....................8

Geodeck [www.geodeck.com]........... ..................64

GRK Fasteners [www.grkfasteners.com]. ........69

Guardian Building Products Iwww.guardianbp.com] ..............9

Hampton Affi liates Iwww.hamptonaffi liates.com] ..................40

Hoover Treated Wood [www.frtw.com]

HuffLumber Co........ ..............................38

Ipe Clip Co., The [www.ipeclip.com]......................'.................48

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

KK Manufacturing [www.lumberloc.com] ........'..............---....77

Krauter Storage Systems [www.krauter-storage.com]...........35

Lanxess GMBH Iwww.protectedbypreventol.com].................31

Lewis County Forest Products [www.titanstuds.com] Cover IV

Cascade Structural Laminators [www.cascadesl.com]

Cedar Valley [www.cedar-valley.com]

CMI [www.craftmasterdoordesigns.com].

Colville Indian Precision Pine [www.cippine.com]..................34

Coos Head Forest Products Iwww.cooshead.com]

L-M Equipment [www.lmsaws.com] ...--...---......42

Norman Distribution Inc. [www.normandist.com] --.............81

Nu Forest Products Iwww.nuforestproducts.com] ..................21

Osmose [www.osmose.com].............. .........Cover I

Pacific Wood Laminates [www.pwlonline.com] ......................45

Pacilic Wood Preserving Cos. [www.pacificwood.com]..........58

Penofi n-Performance Coatings Inc. [www.penofin.com]........83

Quality Borate Company [www.qualityborate.com]...............26

Railing Dynamics Inc. Iwww.rdirail.com].'..............'...............57

Redwood Empire Iwww.redwoodemp.com] ..................Cover II

Rio Tinto Minerals [www.riotintominerals.com] ....................29

Roseburg Forest Products [www.rfpco.com].............................7

Royal Pacific Industries -...........24

Seljax Internationat Inc. Iwww.seljax.com] .............-.......'......65

Setzer Forest Products [www.setzerforest.com] ......................15

Simpson Strong-Tie Iwww.strongtie.com]................................30

Siskiyou Forest Products [siskiyouforestproducts.com] .........67

Snavely Forest Products [www.snavelyforest'com].................37

Stepstone Inc. [www.dekstone.com]... ....--..........36

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Stimson Lumber Co. Iwww.stimsonlumber.coml....................32 ..........41

Sunbelt [www.sunbeltracks.com]

Superior Wood Treating [www.superiorwoodtreating.com] .71

Swan Secure Products [www.swansecure.com].'.....................17

Swanson Group Sales Co. [www.swansongroupinc.com].......25

TAMKO Building Products [www.elementsdecking.com]..'....3

Thunderbolt Wood Treating [www.thunderized'net].............33

Universal Fastener Outsourcing Iwww.91l-nails.com]...........75

Utah Wood Preserving Co....'............. ...............53

Vaagen Bros. Lumber Inc. [www.vaagenbros.com]................66

Van Arsdale-Harris Lumber Co...............................................54

Viance [www.treatedwood.com]..... ....................49

Waldron Forest Products................... .................36

Waldun Group [www.waldun.com]. ......Cover III

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

Western Wood Preserving Co. Iwww.westernwoodpreserving.com]....................................68

Western Woods Inc. [www.westernwoodsinc.com].................44

Protecting Your lnvestment

Unlike some mills, which sacrifice quality for affordabiliry The Waldun Group places quality and value paramount. We integrate all aspects of cedar manufacturinq, allowing you to purchase all your cedar lumber, roofing, siding and products in a lingle ord?r. t,lot only does this minimize your inventory and facilitate turnaround, it also ensures that you receive a consistently high quality product.

Betcha didn't know Douglas Fir compares favorably with Western Red Cedar for longevity and stability and exceeds the same characteristics when compared to Hemlock and fencing from China.

strrt (iii qa;,iefuit" with woodruff and Rusty. call Denny, "the Big Dog," Reinwalcf-and let him open your gate to added value profits while building Certified Good Neighbor relationships with your customers.

Stocking Registered Dealer Programs available