Merchant Magazine - November 2009

ruing building prlducts retailers and whllesale distributors in 13 Western states-Since 1922

LP@ TechShield' Radiant Barrier Sheathing features a thin layer of aluminum laminated to LP@ OSB. The original radiant barrier sheathing and the #1brand, LP Techshield Sheathing installs just like regular roof sheathing. But because it blocks radiant heat in the panel from entering the home, LP TechShield Sheathing can reduce monthly air conditioning bills by up to I7o/o. And only LP TechShield Sheathing features VaporVentstM technology which allows it to dry from construction moisture more quickly than other radiant barrier panels.

Seruing 19 Weetern States, !ncludlngAlr.kr and l{.waai

(Sistet publintion Suilding Prcduc$ Aigest seves the East)

PUBLISHER Alan 0akes (ajoakes@aol.com)

PUBLISHER EIIIERIIUS DavidCutler

EDIT0R David Koenig (dkoenig@building-products.com)

ASS0GIATE EDIT0R Karen Debats (kdebats@building-pr0ducts.c0m)

COI{TRIBUTING EDITORS

Dwight Cunan, James 0lsen, Carla Waldemar, Jay Tompt

AD SALES MANAGER Chuck Casey (ccasey@building-products.c0m)

ClRCULAT|0ll Heather Kelly (hkelly@building-pr0ducts.c0m)

ADMIIIISTRATIOI{ OIRECT(IR/SECREIARY Marie 0akes (mtpoakes@aol.com)

How to Advertise

Conlacl our adyedislng olfices l0r ratos: WEST, MIDWEST, SOUTHEAST: Qhuck Casey, Newport Beach, Ca.; (949) 802-1990; Fax949-8520231 ; Email ccasey@building-products.com

i{0RTHEAST: Paul Mummolo (N.J.); (732) 8S9' 8102; Fax 732-899-2758; Email mummolop@ comcast.net

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The front cover is a paid ad, this month sponsored by 0smose.

Eclipse'" Weather Guard panel system eliminates the need to use a separate house wrap. Save with the combined benefits of a radiant barriet for lower utility bills, a vapor diffusion retarder to control unwanted vapor and an air barrier to block random air movement through building cavities. Rated Class "8" fire rating on side wall applications.

Time to get America back to work

One of my contacts told me today that in a straw poll of l0 companies in this industry, only one of the l0 responded that business had gone up in the last 60 days-and that one attributed it to a loss of competitors in its target area.

How many of you feel great about the economy? How many of you feel we are headed in the right direction? Been out on a spending spree lately? As I wrote last month one of the biggest issues we face is the continued growth of foreclosures, which here in California is expected to be l47o by the end of the year. But we also have almost l37o unemployment in Califomia and almost l07o nationally.

While there are other issues that created the first round of foreclosures, this round has been created by unemployment. Indeed, it is estimated that unemployment or underemployment, including those who have just given up, is actuallywait for it-over 25Vo and nationally almost lT%ot And other issues, such as credit card debt, are about to hit in large waves. We need to get people back to work.

I am fed up with seeing inactivity and with stimulus money evaporating, producing absolutely no impact in this industryor as far as I can see. in anv other industrv either.

ALAN OAKES publisher ajoakes@aol.com

We have to start creating jobs again. Not soft jobs but real jobs for the future. To date, we have lost around 7 million jobs-probably over double what most of us have seen in the last 50 years-and it is not short-term. For the under 25's, over a quarter cannot find a job. It is systematic of issues in this country and indicative of issues that have been growing for many a ycar and that have been covered up.

We are hearing that the recession has ended. Really! A recovery underway. I wish! The banks may have bounced back a few ticks, amazingly just in time to get their massive bonuses this year. Corporate profits are seeing an uptick, but what about us? Mr. and Mrs. America! We have lost our homes, fost our savings in our 401/k's, and we are seeingO.2Vo interest from our banks. Most of us have seen cuts to our quality of life. There is a lot of bleeding in America.

If the recession has ended there would already be indications of companies hiring. At this time, there is absolutely no indication of that reality, and I am afraid a new employment paradigm may be in play. A lot of companies will resist hiring for well into the future.

The Administration has talked about saving jobs. I cannot tell from my perch, despite all the spending, if that has been achieved or not, although the spin doctors will say it has been of course. But what we really need to do is create jobs. Much of the stimulus package has been spent saving banks (and I am generally supportive that something HAD to be done) and car companies. But now that the Cash for Clunkers program is over, has that created any sustainable jobs? I do not think so! Sales have reverted back to pre-program levels.

We are in-like it or not-a new world order that we have helped to create by allowing our manufacturing jobs to go AWOL from our shores. We now compete against 2s-cent-anhour jobs in Vietnam. We must rethink how we are going to become competitive and devise programs that support our nation's strengths: innovation, entrepreneurship and building small businesses from our garages. We have done that in the past and must do it again. Our leadership in technology needs to be reinvigorated, and we need to find ways to keep jobs on U.S. soil.

Professional contractors who know quality, know Woodway. Built for professionals by professionals, Woodway's six quality product lines are built tough, made of top-quality solid wood and are carefully crafted. Call or email Woodway for complete information about EZ Rail, Architectural Deckrail, Quick Clad post sleeves, post caps, planking and durable lattice panels.

Instead of us wasting the stimulus package on frivolous benefits that no one can see, touch or smell. cut out a lot ofthe anti-business regulations that our manufacturers have to face, unlike their international counterparts. Offer new job incentives to encourage hiring. Offer R&D tax credits to encourage ingenuity. Support entrpreneurs in taking new ideas and building companies and jobs that will revitalize the U.S.A. Retrain employees from old industries in new technologies. Industries such as renewable energy, healthcare and technology need to be supported, and we really need to focus and solving our housing problems. That alone would fill over a million jobs.

Getting people back to work will raise spending, eliminate pending foreclosure issues and will be the impetus of getting our industry back on its feet. A year has gone by since the collapse of all we knew but from where I sit we still have a long way to go to recover. I just don't sense that our politicians are doing a whole lot about it.

Tnn Mrncruxr MlcazrNn NoveMeen 2009

Deeking producers double down on composites

fD ETWEEN consolidations, bank-fD ruptcies. high-profile product failures, and ensuing class action lawsuits, composite decking manufacturers have had a rough few years.

Yet consumers still want the durability, weatherability and low maintenance provided by alternative products (see sidebar on next page).To meet the demand, many producers have gone to all-cellular PVC. However, several leading composite producers are digging in their heels, convinced that theirs remains the better product.

McFarland Cascade. for instance. recently introduced Terratec Naturals, composite decking containing recycled plastic and rice hulls, which have a high-silica content, making the surface less susceptible to moisture and stains. The boards are also designed to be installed using fixed-point pinning and floating fasteners to direct expansion and contraction to the edge of the deck, which is hidden behind a patented G-Trim profile.

Other producers have their own solutions.

So, Wrat Went Wrong?

For years, homeowners have been attracted to the beautiful ads and the low-maintenance promises of alternative decking. The market opportunity identified in the late 1980s was to offer homeowners an alternative to the frequent sanding, staining and sealing required of wood decks. With the basic ingredients of wood flour and plastic, the composite deck board was born.

"Early product struggled to live up to the low- or no-maintenance

WHILE certain decking manufacturers have fled composites, several have recommitted to the technology by making their products even better.

promises hyped by both the manufacturers and distributors," says Bill Ross, senior v.p. of sales for Fiberon. "And this is still true today of new manufacturing entries into the market. Today there is such a rush to get a product to market that there is often not enough attention paid to the science behind making a product that really performs."

Bobby Parks, owner of Peachtree Decks & Porches, Atlanta, Ga., agrees: "For me, it's only recently that alternative decking is perfbrming at an acceptable level and, even still, the list of composite and PVC boards I work with is very short."

Essential to alternative decking is the ability to withstand the environment in which it is put. Mold growth on composites is the number one complaint from homeowners. (For PVC decking, the primary challenge has been the surface fading white and chalking off, a mess that is difficult to clean up when tracked inside.)

Manufacturers have been carefully listening to feedback and adjusting their product formulations. According to Fiberon, the key to durable decking is quality, proven mold and mildew inhibitors. To aid with fading, chalking and other surface issues, UVA inhibitors essentially act as sunscreen, protecting the product from breaking down and fading. The inclusion of antioxidants, like those found in blueberries and pomegranates, inside the boards offers long-term resistance to degradation.

"Many folks glaze over when I go into the chemical makeup, but this is the most fundamental way to under-

stand how a product will perform in the field," says Ross. "You can't just look at a board and decide it's durable enough; you need to know what the specialty chemical additives are. If they're in there, the manufacturer will want to talk about those chemical additives. Ask direct questions and expect direct answers-not just fluff."

He suggests dealers ask themselves the following to ensure they're carrying reliable brands of alternative decking:

Do the components of the composite or PVC decking (or railing, fencing) represent the latest, proven technology?

How exactly does it provide protection from mold and mildew growth? UV damage? Chalking? Fading? Staining?

. Is there a written warranty against fading? Chalking? Staining?

In what other applications has the finish technology been proven through exposure to similar conditions to that of a deck?

. Is there third-party testing to back up manufacturer claims?

Custorn Formulas

GAF, too, has increased its investment in composites. "While most other manufacturers have chosen the cellular PVC route to solving the problems associated with first-generation composites, we chose to focus on a co-extruded composite solution which actually allows us to utilize even more recycled content today than we did two years ago," says GAF Decking Solutions marketing manager Mike Descoteaux, referring to

Double-Digit Growth for Composites

Demand for wood-plastic composite and plastic lumber willclimb 10o/o a year through 2011 to $5.4 billion worldwide, forecast the Freedonia Group.

Driving demand will be the materials' durability, weatherability, low maintenance requirements, low lifecycle cost, increasing consumer and contractor familiarity, a widening distribution network, aesthetic product improvements, and ongoing interest in green building materials.

Plastic lumber has found significant use in agriculturalfencing, molding and trim, and is pushing into decking, fencing and end uses such as site

GAF's recent acquisition of

CorrectDeck CX, with a recycled content of 807o. "Most of our competitors do not use any recycled conte;t at all in their premium products."

Azer Building Products was one of the first companies to produce cellular PVC decking and, according to decking product manager Michael Gori, "has been proactive in highlighting Azer Deck's different composition and performance in light of recent attacks on composite decking."

Yet even its line that would technically be considered a composite is different. To add strength and reduce expansion and contraction with the Iighter palette of colors, known as the Harvest Collection, Azsr added a small amount of flax agri-fiber instead of wood.

Jim Mahler, president of LifeTime Lumber, says his company avoids using "organic materials that are destined to be attacked by Mother Nature. [You] can add herbicides, fungicides, fire retardants, and the like, but really they can only slow down the inevitable attack-they cannot prevent it. Our solution uses an inorganic material-fly ash reclaimed from power generation-that is inert to all the things our competitors' suffer from-rot, termites, fire, expansion and contraction, water absorption, and creep."

and leisure furniture.

Composites, however, will enjoy faster growth through 2011, posting gains of 14.3olo annually to reach $2.6 billion. Biggest growth will come in decking, window/door components, and niche end uses (porches, site and leisure furniture).

By 201 1, decking will be the largest end use for composites and plastics, accounting lor 44o/o ol demand. Molding and trim will remain a key market, but with below-average growth due to increasing market maturity and a weak new housing environment. Plastic lencing gains will also be limited.

Another advantage of LifeTime, Mahler says, is that the polyurethane it uses is a thermoset, which can perform differently than the thermoplas- tic used in some other brands. "Thermosets are inherently stronger than thermoplastics in areas such as tearlshear, compression, tensile strength, and heat deflection or creep," he says. "Thermosets also have superior properties in flammability, weathering and mold/mildew resistance."

Fighting Perceptions of the Past

Few composite products have had a tougher road than GeoDeck. Flaws in the composition of the original product, introduced in 2002, led to failures and costly litigation. Although GeoDeck was quickly reformulated, the damage had been done. And subsequent mis-steps by management did little to endear the struggling company to dealers and distributors.

Now on its third owner, Green Bay Decking, the company is committed to spreading the word that GeoDeck is

"the best overall composite decking solution in the industry."

And the company has invested heavily in independent testing to back its claims. "We have always used third-party testing for our own products, but have recently expanded that to include third-party testing of all competitor products, as well," says president Lanny Jass. "We believe that is important to give customers the best information to evaluate a product's long term performance for their application. We are cunently working with multiple outside research agencies to test our boards and our competitors' boards."

A recent water absorption study, for example, showed that, because GeoDeck contained no wood residue or sawdust, it outperformed competing brands.

Absorption rates directly affect performance, since the presence of water in composites decreases their durability and mechanical properties, including performance during freezel thaw cycling, dimensional stability, and warping. In addition, the higher the water content, the higher the risk of internal decay due to microbiological activity.

Instead of

GeoDecklike McFarland Cascade's Terratec Naturalscontains rice hulls, which reportedly are naturally more resistant to internal microbial activity and water absorption than wood and wood by-products.

"The science behind our products, which has allowed GeoDeck to achieve best-in-class ratings for mechanical strength, stiffness, joist and stair tread span, density, weightper-foot, and now water absorption rates, is unmatched anywhere in the composite decking industry," says Shane O'Neill, director of research & development. "We are, however, never satisfied and will continue to invest in the innovation, quality control, and safety of the product line, as well as our next generation of composite products."

That doesn't necessarily mean there will be a flood of new products. "We are extremely careful about introducing any new products until they are fully tested and/or they are based on proven technology," Jass says. "The standard tests required for building code approval do not always show how products will perform over time in a real world environment."

He differentiates between "functional" deck boards and impressive-

looking "decorative" deck boards you might see at a trade show. "How a board looks on a show deck is not necessarily how it will look after several years on a consumer's deck," Jass cautions. "Long-term issues such as mold, mildew, fading and expansion/ contraction have been evident in the industry for some time. With the newer decorative boards, there is little history on performance for scratch resistance, impact resistance, and developing 'wear patterns' in high traffic areas. For decks that will experience relatively high traffic and high use, those factors should be considered and tested over time."

He also suggests working with contractors and builders to make sure they are using the boards correctly, since many call-backs result from improper installation.

With an educated dealer and distributor network, contractors and consumers can choose composites with confidence. "At the end of the day, the customer just wants a product that will withstand the harsh effects of the outdoor environment," says GAF's Descoteaux. "I doubt that they truly care what the material is, but they do want their deck to look good and to be environmentall y friendly."

IMPROVEMENTS in both performance and appearance continue to be made to composite decking, such as Fiberon Horizon decking with a scratch-, stain-. solinter- and fade-resistant surface and exotic hardwood color options.

wood fillers,

Bamhoo ilecking

Answgr$ on thg latsst deck lrnmil

D) AMBOO may be the fastest grow.fDing plant on Earth. Unlike lrees. which take decades to reach harvestable height and width, bamboo stalks can be continuously re-harvested every three to seven years. And, say proponents, continuous harvesting of this woody grass actually improves the overall health ofthe plant.

With these green credentials, manufacturers and importers earlier this decade began marketing bamboo flooring to the U.S. Now, they've turned their sights outdoors-to the turbulent world of decking.

The Merchant Magazine asked Jeff Goldberg, c.e.o. of Cali Bamboo, San Diego, Ca., to share how bamboo decking stacks up with the competition.

Merchant What are the differences between bamboo and other hardwoods? Does it need treating or preserving?

Goldberg Besides not killing the trees, bamboo is 25Vo to 150Vo harder than most hardwoods and holds a tensile strength greater than some alloys of steel. This adds up to strength dura-

bility in addition to the green factor. The fact is that even if bamboo wasn't green, people choose it just because it's a better building material.

Merchant Does bamboo decking require treating or preserving?

Goldberg As far as maintenance goes, it's on par with other wood decking options such as redwood or cedar. You will want to seal it and maintain it just as you would any hardwood.

Merchant Are there particular decking applications, climates or conditions that bamboo is best for or others that it's not recommended for?

Goldberg Bamboo decking might be a new concept in the United States, but Europe has using this product for years. BamDeck will hold up in any environment in the U.S.; however, one might use a different kind of sealer depending on the local environment. Keep in mind Europe's extreme highs and lows are not that much different than ours, and this product is widely praised over there for its resilience and beauty.

Merchunt How is demand for bamboo decking since its launch?

Goldberg We see that there is a need for a green decking product that is termite resistant and Class A fire rated made from a natural wood. The market has made it clear they like this product, and we are responding by offering a few more options to the current [ones]. Stay tuned.

Bam[oo

www.sundeckamenicas.com

AFTER cracking into the llooring market earlier this decade, bamboo manufaclurers are now targeting the decking industry.

lN ADDITION to its tropical look, BamDeck from Cali Bamboo reportedly resisls mold, insects and extreme weather.

What are your options?

By James Olsen

n NE OF the biggest wastes of time \-ffor us as salespeople is chasing business we cannot get. If the information we possess about what a customer wants is not thorough and complete, what are our odds of getting the order?

What is the information we need to close? We need to find out all the information necessary to actually get the order, before we begin to work for our customers. When asking for this information we need to ask the customer about all the options they will consider.

Have you ever lost an order because you didn't ask one more question? I have. It's frustrating. To avoid this problem, we ask our customers aboil all the options possible.

Example:

Us: "When do you need it to ship?"

Customer: "Two weeks or sooner."

Us: "Would one week shipment help?"

Customer: "Yes, it would. I am getting low."

Now we have more closing information. If we can find something quicker, it will be an advantage. Not a huge advantage, but in a competitive market it may be all the advantage we need.

In addition, we will discover other advantages throughout the inquiry process when we ask "what are the options?" questions on other specifics.

C ontinuing the example :

Customer: "No, I don't need it sooner. Two weeks is fine."

Us: "Can you live with three weeks?"

Customer: "You know, I probably can live with three weeks."

Another advantage. The seller who just takes the inquiry without asking probing (options?) questions is left in the dark. There may be only two suppliers who can ship our order in two

weeks; there may be 20 who can ship it in three. Three weeks gives us more time to find a better deal, even if the market doesn't help us.

We ask the options question on each of the specifics of the inquiry: Shipment: one week, two weeks, four weeks?

Type of s/ocft; Eastem, western, high, low or medium reputation, reman?

Item: lx4-could you use a 1x3?

Grade : #3. 3&Btr.. 3&Btr. lj-l57o #4, highlined #3?

Ial/y; Nobody buys "good random." Get an exact tally and all options.

Species: Can you live with Fir/larch? Does it have to be eastern?

Price: What are you thinking on price?

Many sellers are too intimidated to thoroughly question their customers about inquiry they get from them (especially on price). They feel the customer will get upset and say something like, "Why are you asking all these questions, just give me what I want!" If the customer gets upset we say, "John, the reason I'm asking you these questions is because I want to get you exactly what you want, not just come close."

(What we are really saying is, "I

am serious about your business and mine. I want to get you exactly what you want, and I want you to get it from me. I'm not here just to quote.")

If the customer won't share information with us in the inquiry phase, will they all of a sudden open up at closing? Of course not. Our customer's attitude during the inquiry will give us plenty of clues on how to close. It will also give us an idea what the chances are of getting the order. (Thus telling us how much time to spend on it.)

The "We" Nlode

Our attitude from the second our customers tell us they are looking for something is that the order is ours. A good way to project this is to talk to our customers in the "we" mode.

Examples:

When do we need to bring this in? What kind of tally are we thinking on this one?

Speaking in the "we" mode will be uncomfortable at first, but you will get used to it. I have never had a customer say, "Hey, what's with all this we stuff." If we want our customers to treat us like partners, we must speak like partners.

Pre-Closing Off Inquiry

We pre-close our customers when we take inquiry correctly. We get them to engage and spend time with us. This by itself will tilt the odds in our favor. Asking probing questions helps us find the true need of our customers before closing.

Taking inquiry thoroughly will lead to more orders and less wasted time for us.

- James Olsen, Reality Sales Training, specializes in sales taining for the lumber industry. Reach him at james@ reality-salestraining.com or ( 503 ) 544-3 572.

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PBEPABED SCOUTS. Treated wood tent platforms allow comfortable carnp ng desprte wet weather that otherwrse wouid create muddy Tt00rs.

PRIVATE HARBOR. Dug out behind a treated bu khead on this lake is a calm sanctuary lor one lvell-protected boat.

DECK THE BOUGHS. Not many trees have their own deck. This one does. as well as a platform for tree-guarding sent nels (currently on DreaK).

CELLULOSIC BODY SHOP. Instead of 0oin0 to the iunkvard lor 0ar1s, this car owner must have visited a umbeiyard.

DON'T WASTE YOUR TIME, DON QUIXOTE. Sails and sidinq on this Enqlish windmill were made usrnQ preserved wood.

GOOD PLACE FOR FRUITY RUM DBINKS. These Bahamian posts support thatched covers and handy tables for a snack and beverage.

WINDOW WELL WITH A VIEW. ln addition to admitting light through a basement window. this wood-walled well serves as an artistic niche.

N0 PLACE LIKE HOME, TOT0. This house will withstand termrtes and f ungi for a long t me - in dog or people years.

PRIMATE & PILE. Everyone occasionally needs someone (or something) to lean on.

litive ligence

Echoing success

By Carla Waldemar

laf HRIS Beilhartz was pretty confi\-,dent when he made the decision to purchase a lumberyard 10 years ago. Okay, a little nervous, too.

He was 25 and one year out of college, where he'd studied business. He always knew he wanted to go into business, just not the family business. Playing nice with a bunch of contractors and weekend warriors? Not every young entrepreneur's dream.

Chris had helped out in his father's hardware store in a neighboring town throughout his school years, but mixing paint and counting out nails were never high on his list of career choices: Time to flee to something more glamorous, like selling sports cars, or sports coats.

Maybe the paint fumes addled his thinking, for when push came to shove, he found it hard to leave. "I'd come to love what we did, dealing with people on a daily basis. 'Hey, this is pretty nice: Stick to it!"' he counseled his inner rebel. And bought a tiny store in nearby Echo Bay, Ontario, Canada. (He figured the family business would slice a small pie even thinner, "no opportunities for growth.")

"I was confident I could run the business," he says in retrospect, "but it was still unnerving. I inherited a staff of six experienced people, many of whom were twice my age."

Cut to the chase: In the 10 years of his ownership, sales at Echo Bay Home Hardware have rocketedTSVo.

First order of business was a complete turn-around. The 3,000-sq. ft. store served only pros, with a miniscule retail area in front for an almost nonexistent walk-in trade. Chris projected a complete home center-onestop shopping for retail customers and the contractor base alike. He tore out a little-used window shop in the rear, enabling him to convert the entire space into a 10,000-sq. ft. showroom.

In order to beat the nearby competition (including big boxes in Sault St.

Marie, 15 minutes away, where six lively independent yards also flourished), he expanded and added product lines to capture the whole project-and then some. New brands, new signage, new diversity: housewares, sporting goods, expanded electrical and plumbing, and more drew the d-i-yers and pumped up sales of lumber packages to pros as well.

During that first year, Chris drove profits from $1.8 million to $3.2 million. "We became a destination retailer," he notes. "And by adding more departments, like housewares and Christmas gifts, we could stay busier when home-building stops in winter. so we could keep pretty steady yearround and avoid layoffs."

No need for fancy ads. In a community like Echo Bay, all it takes is good word of mouth. "In a small town," he says, "that's huge. Everybody knows everybody. Plus, we're located directly on the Trans Canada Highway, with a lot of traffic."

His staff of six-"great people, happy to ciury on with a young boss,"

says the young boss-"were good with customers. They loved the change of focus, because now they could give advice, could actually help people with their projects. Of course," he adds, "there was a learning curve with whole new product lines and a new computer system."

Staff education has always been of prime importance for Chris, however. Today the crew numbers 18. "We have monthly staff meetings at which one person presents the ins and outs of a new product," backed by supplier huddles and a monthly SBTV (Success Building through Television) video on anything from products to customer service." Chris has installed a TV in the lunchroom to make in-service training a piece of cake (or sandwich, as the case may be).

Margins rose accordingly. "My philosophy is, don't be the lowestpriced. Be competitive, of course, but not a discount store. I'm selling myself on quality of products and great service-giving advice the boxes cannot. We talk to someone face-toface, backed by lots ofexpertise."

Speaking of expertise, Chris has added Installed Sales to the company's dance card. While other yards remain leery of angering their contractor-customers by appearing to cut into their business, Chris has actively sought to partner with them, and, he reports, "It works great! They love it! Customers had been telling me, 'Chris,I've heard horror stories, but I trust you. I just want to write one check. Can you do something for us?'

"I take care of the payment, deliv-

FACELIFT two years ago added a homey awning, a fresh look, and a refreshed image.

ery, selling the job, and all the paperwork, while the contractors have the opportunity to do the work they love but not the paperwork, the administration, the going out in the evening after dinner to figure out bids," Chris says. "I'm not favoring one guy over another; it's equal opportunity among qualified people. It's strengthened my relationships with these contractors-no friction."

"We also install garages," he adds, "a big part of our business in Sault Ste. Marie. We've established a reDutation as the local leader."

Because he knows the imoortance of keeping fresh and clean and ahead of the competition, in 2007 Chris again remodeled the home center. "We tore off the front of the store and added an awning, to look more like a country store. Plus, under it we can store barbecue grills and lawn mowers," he adds. "It looks pretty sharp. With it, we added a garden center" to further diversify Echo Bay's multiple niches. "Plus, we greatly increased out kitchen department with new display areas and hired a full-time designerand it just took off!" he reports.

Echo Bay is currently experiencing the same economic travails as the rest of the globe, of course. "Last year was

a really good building year-the best ever," says Chris. "We sold a lot of house packages and cottages. Today, it's mostly remodeling, but that segment remains strong.

"When times are tough, you buckle down and do what you have to. Lean times give you the opportunity to look at where you can save. But," he adds, "we've had no layoffs-my mode of operation from day one. Lots of stores hire extra part-time people in summer and then let them go when the season slows down. I'm just the opposite. In slow times, we do the remerchandising work we have to do. Full-timers are key to retain, because they're loyal and they know your products. In a small town, you've got to focus on that kind of friendly service."

Chris is quick to point to a key component of Echo Bay's success: "My wifel Her support. We work sideby-side, day in and day out. I tell people that working with your spouse is the greatest thing....and also the worst thing. You've got the same goals, but also a [potentially] stressful relationship. If it's a bad day at work, you might bring it home with you...."

Well, you could always open a second store to add to the mix and never lack for conversation. And that's

central retail operations Dale MacPherson, area mgr. Brian Cook, Echo Bay owners Chris & Tammy Beilhartz, co-op v.p./c.e.o. Paul Straus.

exactly what's next up (though not necessarily why). "I just completed a buy-out of my father's original store in my hometown," Chris shares.

"This will be a learning curve for me, to juggle two stores," he acknowledges. "I'm a hands-on manager, but I'll need to be more of a manager that puts policies and procedures into place and then trust other managers to implement them."

Hey, it'll keep a guy from getting set in his ways-even if he's only 35.

- A former award-winning LBM trade maga4ine editor, Carla Waldemar writes frequently on the industry. Contact her at cwaldemar@ comcast .net

EABLIER this year, Canadian LBM co-op Home Hardware Stores Ltd. presented a Proud of My Home Award to Echo Bay, recognizing excellence in customer service, training, and store aesthetics. Shown (/-r): co-op's director of

Community insulation

By Jay Tompt

These are good models, but the reality is that these examples are getting harder to find and even harder to replicate. Two organizations, BALLE (the Business Alliance for Local Living Economies) and AMIBA (the American Independent Business Alliance), are focused on helping local businesses thrive, creating new models.

founder, was determined to make Woodland a destination for green building, stocking a wide selection of products, and recently opening a green showroom.

"We've always focused on the triple bottom line and building relationships with local green builders," Reese said.

ITH the economy still in doldrums and the cold winter months around the corner, I continue to be fascinated with insulation. Not the rebate-earning, energy-efficient, recycled-denim kind your customers will love you for, but the economic kind that will sustain your business through the lean times and propel the inevitable upturn to come.

There's little doubt that energy efficiency and green building will define the shape of this industry for decades to come, so it makes sense for every LBM dealer to bone up on these issues, stock and promote the products, train the staff, etc. But creating sustainable "economic insulation" requires deep community collaboration.

There are good examples of multigenerational, family-owned dealers that are well-placed in their communities, have staved off the "big boxes" and done well. even in hard times.

In the Rockies just outside of Denver, Co., sits Big Horn Building Materials, a big local supplier for the surrounding mountain towns and resorts. Founder Don Sather has been a big proponent of energy efficiency and green building, walking his talkthe store is fitted with solar panels and is involved with a local non profit studying the feasibility of wind power in the community. He was also one of the founding member of Summit Independent Business Alliance, (SIBA), an AMIBA affiliate.

"A few years ago, our community successfully fought off a new big-box chain and that really opening my eyes," Don told me. "One of the most important things about being involved in a local network is getting closer to local officials and educating them about the economic benefits of supporting locally-owned business versus national chains."

Strong relationships with other local businesses and SIBA's shop local campaigns have kept his business doing well, even though the economy overall has been weak, he added.

Woodland Building Supply, a nine-year-old dealer in Philadelphia, Pa., is another interesting model.

Larry Reese, president and co-

They joined Greater Philadelphia Sustainable Business Network, a BALLE affiliate, about a year ago. "It seemed like the natural thing to do," Reese said. "We've developed many more strong relationships with local builders, developers, and vendors and, to be honest, they've kept our business really busy over the last year."

Paula Burke of Burke's Hardware, a family-owned dealer with a 12-year history in Raleigh, N.C., told me a similar story. They recently joined their local network, Shop Local Raleigh, and were imediately impressed with the results.

"We participated in a Shop Local TV ad, and even though we've been in the communty for a long time, it was amazing how many people came into the store who'd never heard of us before!," she said.

They were motivated to join the network in part by the down economy, but mostly, she said, "because it was just the right thing to do, to support your community."

- Jay Tompt is managing partner of William Verde & Associates, a consulting firm dedicated to helping LBM and home channel retailers, distributors, and manufacturers become green leaders in their communities. He can be reached at info@williamverde.com or (4 I 5 ) 32 I0848.

R:rlrrrrs

BMC West parent Building Materials Holding Corp., Boise, Id., has secured a commitment for $83.5 million in exit financing in hopes it can emerge from Chapter 11 bankruptcy before the end of the year...

OG Valentine, Denver, Co., has been acquired by employees Dan and Jody Drake from the estate of Bruce Valentine, who died in February...

King's Ace Hardware, Billings, Mt., will build 20,000-sq. ft. store #3 by spring on 2 of 8 acres the company owns on the western end of town...

Granite Falts Hardware, Everett, Wa., has remodeled and converted to Ace Hardware ...

Ace Hardware opened an 8O00sq. ft. store in the former A-Boy Plumbing & Electric, Hazel Dell, Wa.; Mike and Denise Filbin, owners

Down to Earth Hardware & Supply opened in Sonora, Ca.; owners Murray Smith & Marilyn 'Bodle have operated Down to Earth Construction & Nursery, Groveland, Ca., for 30 years

Lowe's opened a new 117,000sq. ft. store Oct.23 in Paso Robles, Ca.; acquired a store site in Vallejo, Ca., and finally broke ground on the former Goodman's Luntber property in San Francisco, Ca., abandoned by Home Depot following an 8-year battle

Lowe's has tapped Johns Manville as its exclusive supplier of fiberglass insulation ...

Habitat for Humanity opened a 4,000-sq. ft. ReStore discount LBM outlet Oct. 3 in Kapolei, Hi. (John Ayat, store mgr.) ,..

Wrorrslrrns/thrurlcrurrrs

F.H. Stoltze Land & Lumber Co., Columbia Falls, Mt., is suspending the swing shift for one to two weeks each month; to keep planer production in line with the sawmill. some sawmill workers are working a second shift at the planer mill one week per month ...

Hampton ffiliates restarted its stud mill in Morton, Wa., Oct. 5 and the planer mill Oct. 19; the operations have been down since suffering severe storm damage last December

Simpson Timber, Tacoma, Wa., agreed to sell back 35 acres to the Port of Longview, Wa., for $3.15 million, after abandoning plans to build a sawmill on the site ...

Swanson Sales Group Co. moved into new offices Glendale. Or.

Structural Resource Group, Laguna Niguel, Ca., has been formed by Mark Scambray, exStandard Structures, as a manufacturers rep that works with engineers to spec clients' building materials. includine Standard's commercial EWP (w'Fw.structuralresourcegroup.com) ...

Longview Timberlands has begun accepting bids on more than 5,700 acres of forestland in Chelan County, Wa., to buy more timberrich parcels in western Washington and Oregon

Body guard's FSC-certified sidings, trim, fascia and mouldings have passed Chapter 12 California Building Code tests for under eave and soffit applications ...

P e nofin-P e rformanc e C o atin g s, Ukiah, Ca., has revamped its website at www.penofin.com

Universal Forest Products

Western Division, Windsor, Co., is now distributing Titan Wood's Accoya modified wood

has in

Mary's River Lumber is seeking up to $225O00 from a special economic development fund to move select operations from Montesano, Wa., closer to Elma, Wa.

RedBuilt (formerly Weyerhaeuser's TrusJoist Commercial division), Boise, Id., has secured ICCES evaluations for its engineered wood products, confirming RedLam LVL (ESR-2993), Red-I joists (ESR-2994), and Red-L, Red-W Red-S, Red-M, and Red-H openweb trusses (ESR-1774) all meet IBC requirements

Send us your news!

Have your recent expansion, promotions or other company changes published in the next issue of The Merchant Magazine. Just email your news to kdebats@building-products.com or Fax to 949-852-0231.

(a free service)

BlueLinx Corp. now carries all Nichiha fiber cement products ..

Osmose has been granted a preliminary injunction limiting competitor Viance's marketing campaign against micronized copper wood presewatives

German Timber Promotion Fund is liquidating, after the German Constitutional Court deemed its marketing activities unconstitutional and in violation of entrepreneurial freedomi participating mills hope to one day establish a new organization to promote German wood products

Anniversaries: Pacffic Logging Conference, 100th Eagle Rooftng Products, Rialto, Ca.,2Ath ... Screw Products, Inc., Gig Harbor. Wa.. lOth ...

Listings are often submitted months in advance. Always verfu dates ond locilions with sponsor before making plans to attend.

llovrmrm

U.S. Green Building Council - Nov. 11-13, GreenBuild 2009' Phoenix Convention Center, Phoenix, Az.; (800) 795-1147

Washington Forest Protection Association - Nov. 12, annual meeting, Olympia, Wa.; www.wfpa.org.

APA-The Engineered Wood Assn. - Nov. 13-16, annual meeting & expo, Ritz Carlton, Amelia Island, Fl.; (253) 565-6600.

Building Industry Show - Nov. 19-20, Long Beach Convention Center, Long Beach, Ca.; (909) 396-9993.

Intermodal Association of North America - Nov. 15-17, annual meeting & expo, Anaheim, Ca.; www.intermodal.org.

Drcrmrn

Western Forestry & Conservation Association - Dec. 2'3, forest health seminar, Wilsonville, Or.; www.westernforestry.org.

Mountain States Lumber & Building Material Dealers Association - Dec.2-3, estirnating workshop, Holiday Inn Central, Denver, Co.; Dec. 3, year-end party, Mile High Stadium at Invesco Field, Denver; (800) 365-0919.

Lumber Assn, of California & Nevada - Dec. 3, 2nd Growth holiday meeting, Sheraton, Cerritos, Ca.; (800) 266-4344.

Portland Wholesale Lumber Association - Dec. 4' holiday lunch, Embassy Suites-Portland Airport, Portland, Or.; (503) 283-0500.

Federated Insurance - Dec. 5, succession planning seminar, Universal City, Ca.; (8OO) 266-4344.

Western Forestry & Conservation Association - Dec. 10, biomass seminar, Springfield, Or.; www.westernforestry.org.

Western Hardwood Association - Dec. 10, board meeting, Portland, Or.; (360)835- I 600.

Los Angeles Hardwood Lumberman's Club - Dec. 12, Christmas party, Hyatt Regency, Huntington Beach, Ca.; ('714) 6713079.

Portland Hoo-Hoo Club - Dec. 17, holiday party, World Forestry Center, Portland, Or.; (503) 647-5Oll.

fmumv

Seattle Hoo-Hoo Club - Jan. 5, crab feed, Wild Rover Restaurant. Kirkland. Wa.l (425) 883-277'7

Arizona Home & Garden Show - Jan. 8-10, Phoenix Convention Center, Phoenix, Az.; (87'7) 663-6186.

Colorado Springs Home Building & Remodeling Show - Jan. 8-10, Norris-Penrose Event Center, Colorado Springs, Co.; (8OO) 374-6463.

Portland Build, Remodel & Landscape Show - Jan.8-10, Portland Memorial Coliseum, Portland, Or.; (800) 374-6463.

Remodeling & Decorating Show - Jan. 8-10, South Town Expo Center, Sandy, Ut.; (8 l8) 571-9012.

Do it Best - Jan. 13-15, winter conference, Orlando, Fl.; (260) 748-5300.

Seattle Remodeling Expo - Jan. 15-17, Washington State Convention Center. Seattle. Wa.; (800) 3'74-6463.

Western Pallet Assn. - Jan. L6-19, annual meeting, Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca.; (360) 335-0208.

International Builders Show - Jan. 19-22, Las Vegas Convention Center, Las Vegas, Nv.; (800) 368-5242.

Black Bart Hoo-Hoo Club - Jan. 20, industry night, Broiler Steakhouse, Redwood Valley, Ca.; (707) 621-4852.

Humboldt Hoo-Hoo Club - Jan.2l, crab freed, Elks Lodge, Eureka, Ca.; (7 O'7 ) 832 -9039 or (707 ) 443 -'7 024.

Guardian Building Products - Jan.24-26, market, Caesar's Palace, Las Vegas, Nv.; (800) 569-4262.

Lumber Association of California & Nevada installed Laurie Vance, The Mill Yard, Arcata, Ca., as president during its October 22-23 convention at U.S. Grant Hotel in San Diego, Ca. (see photos, p. 42-34). She succeeds Steve Patterson, Central Valley Builders Supply, Woodland, Ca., who remains on the board.

Other new officers are lst v.p. J.D. Saunders, Economy Lumber, Campbell, Ca.; 2nd v.p. Richard McArthur, Ojai Lumber, Ojai, Ca., and treasurer Steve Fleiner, Reno Lumber, Reno, Nv.

Augie Venezia, Fairfax Lumber, Fairfax, Ca., was re-appointed government affairs chair, and executive director Ken Dunham was elected corporate secretary.

Directors include David Thom, Bruce Bauer Lumber, Mountain View, Ca.: John Neel. Reliable Wholesale

Lumber, Huntington Beach, Ca.; Jim Turrentine, Cargotec, Galt, Ca.; Chris Thoman, Simpson Strong-Tie, Brea, Ca., and Ty Pforsich, Moss-Adams, Santa Rosa, Ca.

The 2nd Growth group holds its holiday meeting Dec. 3 at Sheraton, Cerritos, Ca.

Two days later, Federated Insurance is sponsoring a succession planning seminar in Universal City, Ca.

Mountain States Lumber & Building Material Dealers' Association welcomed 2010 president Dena Cordova, Foxworth Galbraith Lumber, Colorado Springs, Co., at its Oct. 1-3 fall conference at the Invemess Hotel & Conference Center, Englewood, Co. President-elect is Dennis Gardner, ProBuild, Midvale, Ut.; immediate past president Bryan Hutchison, Hutchison Lumber, Pine, Co.; secre-

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tary Paula Ervin, Randall Lumber & Hardware, Taos, N.M.; treasurer

Justin Hoese, Alpine Lumber, Frederick. Co.. and national director Scott Yates, Denver Lumber, Denver, Co.

Other directors include Walter Foxworth, Foxworth Galbraith Lumber, Dallas, Tx.; Richard Goodman, Harbert Lumber, Grand Junction, Co.; Steve Ker, Max Ker & Son Lumber, Idaho Falls, Id.; Scott Good, Greybull Building Center, Greybull, Wy.; Mike Kimrey, American Building Specialties, Denver, and Glenn Wurst, ilevel, Albuquerque, N.M.

Mike Butts, LBM Solutions, will lead a blueprint reading and estimating workshop Dec. 2-3 at Holiday Inn Central, Denver.

Dec.3 is also the annual year-end party of the Colorado Wooo Council, at the Mile High Stadium at Invesco Field. Denver. Co.

National Lumber &

Buitding

Material Dealers Association installed Daniel Fesler. c.e.o.. Lamperts, St. Paul, Mn., as its new chairman at its recent conference. He succeeds Paul Hylbert, ProBuild (Please turn to page 45)

Western Mills Reeling From Rough Year

Sawmills in the West weathered a rough year in 2008. according to final production figures compiled by Western Wood Products Association. While the difficult conditions for mills are continuing into 2009, the start of a recovery is expected in 2010.

Softwood lumber oroduction at mills in the l2 westem statcs declined fbr the third straight year. falling to 12.99-5 billion bd. ft. in 2008. Thc total was down 20.4o/c from the previous year and rcprcscnted the Iowest ernnual

western volume since WWPA bcgin cornpiling statistics in the l9-50s.

Priccs received lbr lumber dcclined cvcn more stceply. The estimated wholesalc valuc of western lumber was $3.66 billion. a decrease of 40Vc from 56.l billion set in 2007.

WWPA compiled the final industry totals for 2008 following its annual survey of some l8-5 mills operating in the continental West.

Oregon remained the largest lumber producing statc in the country.

Old World Crafumanship In Today's Designs

Tru-Dry Timbers

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

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

Tru-Dry timbers are dried completely and evenly throughout so you won't experience the sticky problems often encountered with beams that are not dried to the core. Combine our selection of Douglas fir timbers along with our skilled milling staff and you've got one ofthe best resources in Southern California.

despite a significant drop in production. Sawmills in the state produced 4.7 billion bd. ft.. some 23.57o less than in 2007. The wholesale value of Oregon's lumber was nearly 43Vo lower at $ I .26 billion.

Output from Washington statc mills declined 18.4% to 3.89 billion bd. ft. Calil'ornia lumbcr production totaled l 92 billion bd. fi.. down 16.8olc fiom 2001.

A similar decline was seen in other western states. Idaho lumber production fell 23.3a/c to 1.34 billion bd. fi. Montana mills' output dropped 15.4clo to 668 million bd. ft. Mills in South Dakota and Wyoming totaled 243 million bd. ft. and those in the Four Corner states of Arizona, Colorado, New Mexico and Utah produced 2l I million ft. Volumes in these states were combined to maintain confidentiality of individual mill data.

A 337o drop in housing starts shrank U.S. lumber consumpt ion to ,11.9 billion bd. ft.. down 19.84lc from 2007 totals, or a drop ofjust over l0 billion bd. ft. Housing starts totaled 906,000 in 2008, the first time starts have dipped below I million since World War II.

The downturn in lumber production and demand has continued into 2009. Western lumber production is down 26Vo so far this year and housing starts have declined by 467o. WWPA expects lumber markets to recover, although slowly, starting in 2010.

ProBuild Starts Specialty Unit In Wake Of ORCO Sale

ProBuild Holdings, Denver, Co., has taken over two former ORCO Construction Supply branches and hired ORCO's senior v.p. of marketing & business development to launch its own specialty building products division.

ProBuild Specialty Building

Products will provide hardware, fasteners, tools, concrete accessories, and ancillary products to framing, concrete, and specialty building contractors from facilities in Modesto and San Jose. Ca. "We'll assess customer needs to determine future expansion." said ProBuild's Carolyn Atkinson.

The venture will be led by v.p. Hal Look. who spent 23 years with ORCO and is the current president of STAFDA (Specialty Tools and Fastcncrs Distributors Association).

ProBuild created ProBuild Specialty Building Products based on feedback from customers. "We are

confident that by lcvcraging ProBuild's supply chain and operational crpertisc, we can provide an attractive offbring to custorner.s seeking specialtl' building producrs and solutions." saicl Bill Myrick. chief opcrating officer.

Effectivc .Junc I ORCO nas acquired by White Cap Construction Supply/HD Supply.

Trinity Gets Back To Work

A rnonth after a Scpt. l2 f irc clestroyed Trinity River Lurnber's ntill in Weaverville, Ca.. thc companv leasecl the formcr Siller Brothers Sound Stucl Mill in Anderson, Ca.. ll'hich had bcen closcd firr two ycars.

"The mill in Andcrson is doing a srnall percentage o1'what we wcre doin_c in Weavcrville, but it's berrcr than nothin.e." saicl gencral ntanagcr

Dee Sandcrs. "lt's a \\'ay to keep providing custonrers 'uvith uood and kecp our cmployecs rvorking "

Sanclers is unsurc hor", long Trinity River will havc to lcase the rrill in Ande rson. "lt all dcpends on hori,' long it lakcs us to gct Wcavcrville back on line. Therc arc a lot of other lactors, too. that I can't share."

Insurance investi.lators arc still studying rcrrlins of thc fire. which $'as started by a welcler's torch. "lt has bcen r,cry frustrating," Sandcrs said. "Wc ll'ould likc to bc tclLring thc place dori'n right now ancl preparing to rebuilcl."

Dealer Ends Big Makeover

Aftcr tu,o years o1'rernodcling, Sheridan Buildin-t Matcrials & Fecd, Shcridan. Or.. is planning a -grand reopcnlng.

Mana-[cr Don Moon saicl that one rcason thc project took so long u'as that "we hunrl cr-rt e-r'erv piece of ct:dar that went on the fiont." Outside colors werc upciated to hunter green with rccl trinr, while thc interior is now beisc.

Thc cntirc.l,000 sq. ft. on thc ground floor was turnctl into a garden roorn for plants and plant supplies. "We tricd to tunt it into a store that u\lrnelt r.i,or-r'cl t'ccl contfbrtablc coming into." said Moon. "Wc already carrl'' pot(ing soils and plant rnix vear round. so vu,e're toing to bc ablc to brin-c it insidc ancl ntake it nice I'or people."

Roughly l.-500 sq. l't. of upstairs spacc was converted to lar-ecr itctls and contrilctor supplics. Othcr inrplovcmcnts includcd adcling a plywoocl shcd and widcning a gate to inrprovc access to the back litr cars.

onqls

Aron L. Tarrant, Tarrant Lumber Co., Meridian, Id., is retiring December 31 after 42 years in the industry.

John Quast, ex-Pacific Lumber Resources, has rejoined Patrick Lumber. Portland. Or.

Loren Krebs, v.p.-purchasing, Disdero Lumber, Clackamas, Or., has retired after 25 years with the company and 40 years in the industry.

Ahren Spilker, ex-Angel Point Forest Products, has joined the sales team at Idaho Forest Group, Coeur d'Alene, Id.

Ron Tepping, ex-Inland Timber, is now handling inside sales of engineered wood products at Hampton Lumber. Fontana. Ca.

Kelly Sparks is new to sales at Healdsburg Lumber's Hudson Street Design showroom in Healdsburg, Ca.

Brad Bower, Cary Holaday, Mike Ebert, Roger Brown, and Scott Vario, ex-US Timber, have launched Eagle Forest Products, Eagle, Id., specializing in lumber and panel sales and manufacture.

Michele Skyles, ex-Tiger Claw, is the new sales mgr. at Screw Products, lnc., Gig Harbor. Wa.

Richard Winemiller, ex-North Pacific, is now trading eastern and western boards and industrial products at Diorio Forest Product's new office in Oregon City, Or.

Michael Foster, ex-North Pacific, is a new trader with Talon Forest Group, Portland, Or.

Chris Davies was named chief financial officer of Ainsworth Lumber, Vancouver, B.C., replacing Robert Allen, who has left the company.

Kevin O'Connor, ex-Activant, is now senior sales specialist for the LBM dealer sesment at DMSi.

Edie Kello has been promoted to director of marketing for Fiberon.

Bill O'Neill, ex-Roseburg Forest Products, is a new veneer trader for Centurion Lumber Manufacturing, Chemainus, B.C.

Ray Smith has been appointed chief operating officer of ECO2 Forests Inc., Sacramento, Ca.

Pete Pendergast is now vp. of sales in western North America for Dow Building Solutions.

Erik Heilman was named director of government affairs for American Forest & Paper Association.

Bill Friedman, president and c.e.o., Friedman's Home Improvement, Santa Rosa. Ca.. was honored for his community and civic leadership by the North Bay Leadership Council at its annual Leaders of the North Bay awards.

Allyn C. Ford, president and c.e.o., Roseburg Forest Products, Roseburg, Or., was appointed to the Oregon Board of Higher Education by Govemor Ted Kulongoski.

Dee Kaye is administering the new dental plan for Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

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Bradco Makes Premier Buy

Premier Supply Co., Denver, Co., has been acquired by Bradco Supply Corp., national distributor of roofing, siding and other exterior building materials.

The business will retain the Premier Supply name, and Steve Neil, David Suer and Greg Gieed will stay on under the new ownership.

"We believe this was an excellent opportunity for Bradco, as Premier shares much the same philosophy of unparalleled customer service linked to the distribution of high quality building materials," said Martin Segal, Bradco v.p. of acquisitions. "We are very excited about this acquisition as it reinforces Bradco's commitment to the Denver marketplace, following on the heels of our recent opening in Aurora."

With over 130 locations in 30 states. Avenel. N.J.-based Bradco has been aggressively seeking expansion opportunities. The Premier acquisition is its fifth addition this year.

SPI Greating Carbon Project

Sierra Pacific Industries, Redding, Ca., the largest private forest owner in Califomia and the second largest lumber producer in the U.S., is creating a carbon sequestration project that will be the biggest of its kind in the nation and will sequester an additional 1.5 million tons of carbon dioxide beyond what would have occurred given standard logging practices.

Equator LLC, an asset management firm, has agreed to sell carbon offsets lrom the project to power companies and investors under a capand-trade system that's slated to launch in California in2012.

SPI's announcement came days after the California Air Resources Board adopted updated rules for measuring greenhopse gas benefits associated with forest projects.

A key change was the removal of a provision requiring conservation easements. The new rule would require that a baseline volume of trees-or "live carbon stocks"-be maintained in the project area for 100 years.

"We can harvest timber during this period, but we can never fall below the baseline," said Mark Pawlicki, SPI's director of govemment affairs.

Governor Arnold Schwarzenegger said that projecrs of this kind "will help people around the world reduce the 2OVo of global emissions that come from deforestation."

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Learning to manage dilemmas that can't be solved

By Amy M. Schuman

because both sides of a polarity are highly desirable and in fact necessary. Choosing one option over another is always a bad idea.

Families in business together encounter this dynamic everywhere they turn, and their ability to harness the power of polarities is essential to their success. Polarities often feel wrenching because there is no "right" choice. No selection is clearly, indubitably, and unmistakably superior.

[NEVITABLY, every family busilness faces heart-wrenching. impossible choices-choosing between the needs of the business and the needs of the family, choosing between shareholder liquidity and shareholder investment, or choosing between a focus on profitability and a focus on legacy. Each example presents a choice between two "right" answers

that appear to be in direct conflict. In such cases, called "polarities," wise families refuse to choose one option to the exclusion of the other. They recognize that the complexity of the issue at hand won't be addressed by one solution. Instead, they seek ways to incorporate both options. Problems-whether or not to build a new facility, who to hire for an open position, or how much to budget for a new vehicle-can be solved. A choice may be difficult but can-and mustbe made. In contrast, polarities present two apparent opposites that can only be managed, not solved. This occurs

However, as you seek to tap the power of both options, the feeling of frustration is replaced by a wonderful sense of possibility. Now, rather than being limited to one "correct" choice, you are free to select both "correct" choices. When tapped as an interdependent pair, polarities are sources of energy and opportunity. Though neither is superior to the other, together they provide a superior response.

Recurring polarities may feel frustrating or even dangerous. When the family is divided in its response, it can feel as though there is a serious threat to family unity and business continuity. But what if we took a completely different approach to these tricky issues? Rather than seeking to solve them with one right answer, we could shift our framework and. instead. seek to manage them as naturally occurring

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tensions that have no solution. And, rather than feeling frustrated and threatened by these tensions, we could appreciate them as powerful sources of exceptional performance and quality of life. In fact, these polarities are gifts, and learning to manage them is central to the development of healthy families, sound businesses, and vital communities.

Many business-owning families intuitively manage polarities with great skill. But other families often feel inadequate when faced with stubborn, recurring dilemmas that can't be neatly resolved. These families often wonder, "Why aren't we strong or smart enough to make a decision?" Or they worry about the threat represented by a lack of family agreement.

However, once they understand these issues as dynamics to be managed rather than problems to be solved, they can feel a tremendous sense of relief. They acknowledge the necessity to find a way to do both over time. For example, they will need to respond to short-term needs and consider long-term implications. They will need to make decisions based upon emotion and reason. They will serve the needs of the family and of the business. By refusing to choose between two necessary and desirable options, these families are demonstrating their wisdom and understanding.

The research is clear. Companies and leaders that manage polarities well outperform those that don't. The most effective, harmonious families are those that successfully tap the power of both elements of natural polarities.

- Amy M. Schuman is a principal of the Family Business Consulting Group, Marietta, Ga.; (800) 551-0633. Reach her at s chuman@ efamilyb us ine s s .c om.

Reprinted with pemission from The Family Business Adyisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reprt duced without oermission of Famih Enternrise Publishers.

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Welco Shutters ldaho Mill

Welco Lumber Co. will close its mill in Naples, Id., in December and concentrate production at its newly upgraded mill in Shelton, Wa., putting 93 employees out of work.

Peter Stroble. director of sales and marketing, said that the company has the option of restarting the mill. but company officials believe the Shelton mill will produce sufficient cedar fence boards to meet fbrecasted sales growth and any improvement in the economy through 2012.If the economy picks up. the Shelton plant could be expanded again.

Welco, which has owned and operated the Naples facility since 1992, has no plans to sell the property.

BMHC Settles Lawsuit

Building Materials Holding Corp. will pay nearly $izl7-5.000 to a group of construction workers fiom California. Arizona, and Nevada under a legal settlement approved by a .judge overseeing the company's Chapter I I proceedings.

The lawsuit accused the company and its subsidiaries, including BMC West and SelectBuild Construction. of violating state and federal law by

not paying laborers higher rates for overtime work and by withholding pa) ment for time spent in transit between job sites.

According to thc lawsuit. compuny officials also forced workers to hand in time sheets that understated the hours they had worked.

A $244.000 settlement will bc shared among 85 workers who filed a lawsuit last year accusing the company ernd several subsidiaries of withholding workers' overtime and othcr wage payments. Another $23 1,0(X) would gtl touard lecal fees.

Eleven additional workers opted out of the settlement approved last month by a bankruptcy .judge in Delaware and still have claims pending in bankruptcy court. "What wc're really hoping is that the company. as it emerges from bankruptcy and continues building homes, will pay morc attcntion to its legal obligations and pay its workers fairly in the future," said attorney Eve Cervantez.

Oregon MillAdds Planer, Kiln

W&L Lumber, Myrtle Point, Or., formerly known as W&L Contractors, has added a lumber-drying kiln and a planer to its existing alder mill and chipping facility.

"Ultimately. the goal is to take it fiom a stump to a finished board that a cabinet maker can purchase straight from us." said Bill Hitner Jr.. who owns the mill with his wife. Pam.

Bosed in Annopolis, MD, Fletcher Wood Solutions@ is the lorgest monufocturer of de{ect-free, oppeorcnce grode rodioto pine products in New Zeolond. Distributing our cleor boords, mouldings, LIFESPAN@ treoted wood, ond lumber to the North Americon morket through our proven ond completely integroted supply choin, Fletcher Wood Solutionse mointcins direct occess to one o{ the lorgest FSC certified@ pine plontotion forests in the world.

He said that the company has worked closely with vendors to keep costs down, added employees to reduce overhead, and kept a close eye on every penny that comes in or goes out. "We've figured out ways to increase employees and cut costs. It's possible to do that."

Founded by Bill Hitner Sr. and partner Al Lee. the company started as a contract tirnber-cutting service. The present owner bought the business in 1983 and added a whole-log chipper. In 2003, the company added a resaw, which cuts a single alder log into multiple boards to supply cabinet and furniture makers. Over the years, additional equipment was added.

Currently, 25 to 30 employees produce 30,000 bd. ft. of lumber a day.

MiTek's Hardy Frame Connects With Zone Four

MiTek's metal shear wall subsidiary, Hardy Frames, Ventura. Ca., has purchased wood structural connector manufacturer Zone Four.

Perris, Ca., from Trussed Inc., Berkeley, Ca.

"The combination of Zone Four and Hardy provides the best catalog of shear-resisting products and establishes a framework for Hardy to continue to invent new products and innovations in years to come," said Trussed Inc. c.e.o. Ken Cloyd.

"The addition will allow us to better serve our customers through an even broader range of products," added MiTek c.e.o. Gene Toombs. "Zone Four's operations will be merged into Hardy Frames, and all of

Zone Four's present employees will become employees of Hardy Frames."

Trussed Inc. retains its California Truss Co. truss manufacturing operations, which had also housed Zone Four's offices.

Fiberon Re-brands PVC Line

Fiberon has changed the name of its Sensibuilt PVC decking line to Fiberon OutdoorFlooring with Sensibuilt Lumenite Technology.

The company said the name change mirrors changing consumer attitudes toward deckine and sets the

stage for the introduction of new technologies for PVC decking. perhaps as early as next year.

"With the recent proliferation of decking options, homeowners are placing emphasis on style and aesthetics," said Chris Beyer, v.p. of marketing. "They are looking for flooring for their outdoor living spaces the same way they select tile, laminate. or hardwood for their indoor spaces."

Fiberon acquired Sensibuilt in late 2008. The Lumenite fusion-bonded coating inhibits fading and chalking.

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Green wholesaler makes its move

qUSTAINABLE Northwest Wood

\)is moving into a larger warehouse in Portland. Or.. to make life easier for green building dealers in the West. The company distributes only sustainably grown and produced wood products from northern California, Oregon and Washington.

"We allow dealers to serve their green building markets without stocking the products themselves," said president Ryan Temple. "All too often the market connection was not being made-even though there was a fairly robust land base, milling infrastructure, and demand for the productbecause there often was not a standing supply of local inventory."

Sustainable Northwest is the forprofit subsidiary of the nonprofit Healthy Forests, Healthy Communities Partnership. The warehouse car-

SUSTAINABLE NORTHWEST'S warehouse canies only sustainably grown and produced wood products from northern California, Oregon, and Washington.

ries everything from 2x4s and flooring, to siding and decking. All the products come from FSC-certified forests, community-approved restoration and stewardship projects. or reclaimed sources.

"We are a wholesale business, selling to retail lumberyards, building material stores, brokers, design shops, and industrial customers across the West," said Temple.

Portland-based dealers who have purchased from the warehouse include Parr Lumber, Milwaukee Lumber, and ProBuild. In Seattle, Dunn Lumber and Oso Lumber are customers. California's Hayward Lumber is another.

Shipments have also gone out to customers in Hawaii, Utah, and Georgia who want sustainably grown western wood products.

"It's surprising the growth we've had," he said, noting that the warehouse has done well since it opened last fall in temporary quarters in Vancouver, Wa. The move to the larger, permanent facility in Portland should be completed by January.

Temple believes that the cost of locally grown and certified wood products-typically 5Vo to 25Vo more than standard lumber-should come

down as the supply chain becomes more efficient and locally products become available.

Stephen Aiguier, who owns Green Hammer Construction in Portland and co-founded the city's Build Local Alliance, agrees. His company often uses certified lumber purchased from Parr Lumber and sourced through Sustainable Northwest.

He said that the "whole point is to allow wholesale distribution to happen for small foresters. We've been pretty successful on a micro scale of getting local wood headed through local hands to local projects, but we're at the point where we need to up the ante and start talking to larger builders and home supply stores."

Osmose Buys Competitor

Osmose has acquired the wood preservatives business of Sustain micronized copper/ACQ producer PhibroWood LLC.

The acquisition includes the assets PhibroWood used in the business, such as patents, patent applications, trademarks. trade names. equipment and inventories. The deal also resolves ongoing intellectual property disputes between the companies.

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Manufactured with long veneer strips bonded together with adhesives, the engineered wood product is available as headers, beams, columns and posts. The preservative reportedly penetrates to the product's core and is compatible with galvanized fasteners.

- Please visit www.ilevel.com

Climate Zoned Siding

New fiber cement siding from James Hardie Building Products has been engineered for two distinct climate zones.

What's Hot in Decking

Nature's Choice Deck is thermally modified southern yellow pine that contains no chemicals.

Distributed by Building Products Plus, the 1x5 deck boards reportedly are more stable than regular wood and last longer. No special fasteners are required and staining is not needed.

- Please call (800) 460-8627 or vi s it www .natur e s c ho i c e de c k.c om

TipTop DrywallTape

FibaFuse from Saint-Gobain Technical Fibers is a mold-resistant alternative to paper drywall tape.

Radiant Barrier Panels

Eclipse Weather Guard panel system from RoyOMartin consists of radiant barrier panels that are sealed with Weather Guard tape on seams and corners.

HardieZone5 reportedly protects against wide seasonal temperature variations and extreme cold, while HardieZone l0 was developed for warmer climates with high heat, rainfall, and humidity.

- Visit www jameshardie.com

Engineered with a porous, openfiber design, the tape allows drywall compound to flow through and bond with its reinforced glass-mat fibers and the underlying drywall-for a more durable ioint.

Available in 75-, 250-, and 500-ft. rolls, it product reportedly weighs 627a less and is 76Vo stronger than paper tape.

A pre-creased center fold speeds installations in corners.

The product reportedly combines the benefits of three barriers-radiant, air, and vapor diffusion-to eliminate the need for a separate housewrap.

- Visit www.royomartin.com

Waterproof i ng Membrane

Laticrete's Hydro Barrier liquid rubber polymer can be applied before tile and stone is installed in wet areas. The load-bearing, self-curing liquid can be applied with paint roller, brush, or airless sprayer over almost any substrate and can be flood-tested in iust 24 hours.

A Microban additive reportedly inhibits the growth of mold and mildew in the membrane.

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Stylish Windows

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The secure-mount post uses a flange-mount application with either 36" or 42" rail heights.

A top block can be adjusted by 6" and then securely fastened with the railing post cover in place-creating a seamless post system.

- Please visit www.timbertech.com

Fire-Resistant Composite Decking

MoistureShield FR fire-rated composite decking from A.E.R.T. has been approved by the California Building Commission.

Post Mounts

TimberTech's new Dost and block mounting svstem is designed for easy instailation of railing on wool, iompos-

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Energy-Efficient Patio Doors

Fiberglass-clad patio doors from Weather Shield are filled with foamed-in polyurethane insulation for six times the energy efficiency of solid wood doors.

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Options include French-style sliding and hinged models, in four-panel, bi-parting, and up to three-wide units.

Tempered, insulated glass is available in clear, gray, or bronze tint, plus several energy-saving coating options.

- Call (800) 477-6808 or visit www.weathershield.com

Airy Vents

Owens Corning's VentSure ridge vents offer 20 sq. ft. of net-free airflow.

A flat-baffle design reportedly improves airflow by keeping debris away. It also helps to deflect rain and snow.

The corrugated ridge and interlocking accommodate virtually any roof pitch.

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2ND GBOWTH, Lumber Association of California & Nevada's 40-andunder group, met Oct. 1 at Embassy Suites Hotel, Brea, Ca. (1)Jack Butler, Joe Allotta. (2) Johnny Pringle, Rex Klopfer. (3) Richard Coale, Ron Reed, John Allen. (4) Chris Skibba, Doug Willis. (5) Scott Whitman, David Abbott, Gerry Perez. (6) Steve Zanco, Jonathan Freeman, Chris McDonough. (7) Pete Meichtry, Ron Souto. (8) Maritza Mejia, Lirio Ochoa, Brenda Schmidt, Glenda DeFrange. (9) Steve Patterson, Jeffrey Hansler, Mike Shumaker. (10) Barrett Burt,

Tuo MnncuaNr Maclzrrrrr NoveMeen 2009

Craig Larson. (11)Al Reed, Peggy Brown, Chad Kidder. (12) Pete Ganahl, Dustin O'Sullivan. (13) Mike Carey, John Neel. (14) Shannon Mott, Alan Oakes. (15)Jean Henning. (16)Ed Aguilar, Tyrone Smith, Maggie Cabot, Javier Rodriguez, David Tait, Rick Deen. (17) Erik Rodas, Ed Russell, Shawn Knight, Tom Barclay. (18) Oliver Barnes, Renee McMichael, Daniel Hines, Tom Angel. (19) Steve Lawrence. (20) Mike Satterbee, Chris Johnson. (21) Tony Figueroa, Troy Staufenbeil.

ASSOCIATION OF MILLWORK Distributors held its 45th annual convention Oct.7-12 in San Antonio, Tx. (1)Susan Brady, Ken Stubert. (2) Randy Hollinger, John Green. (3) Jud DeHart, Mark Taylor, Tim Myers, Chris Selzer. (4) Dennis Sullivan, Jim McOooey. (5) Tom Feiten, Nate Root. (6) Esther Young, Sarah Hamlin, Ron Pearson, Terry Boren. (7) Darin & Rebecca Hauff, Dan & Paula Wanen. (8) Carl McKenzie, Craig Young, George Stipe, Dan Beaty, (9) Garnett Douglas, Gerina

Freeman, Tom Williams. (10) Joshua Tyler, Dave Durst. (11) John Brown, Brad Boyle. (12) Brit Blair, Alan Meeks. (13) Kevin Fox, Tim Klimek, Gerald Grider, Mike Pendleton. (1a) Jeff Johnson, Shane Kuk. (15)Jim Murk, Bryan Hoyle. (16) Audrey Dyer, Scott Robinson. (17) Cherry Williams, Steve Sutton, Teresa Laze. (18) Chris Roberson, Josh Peizer, Chris French. (More photos on next two pages)

AMD CONVENTfON in San Antonio (continued from previous page): (1) David Overby, Nara Charneski, Rick Bloemke. (2) Kellie Schroeder, Melissa Leal. (3) Eric Sailors, Margaret Gibson, Jimmy Stewart. (4) Franciso Figueroa, Antonio Luque, Rodrigo Monreal. (5) Andres Alacon, Sebastian Mandiola. (6) Jerry Kvalheim, Brian Mcllwee, Gary Routh. (7) Lonnie Ramey, Mark Schongalla, Dallas Stovall, Tom Jappert. (8) Phil Jackson, Randy Roedl. (9) Rick Smischny, Chuck

Tns Mnncunxr MlclzrNn NovrMaen 2009

Casey. (10) Brian Feeney, Sarah Branscum, (11) Terry Livengood, Neal Grubbs. (12) Taimur Khan, Dan Kustin. (13) Cheryl Guizzetti, Marylene Rosier. (14) Jim Parker, Ben Gaswick, Terry Goode, Scott Hilliard, Jim Hutto. (15) Larry Ray, Rosalie Leone, Miguel RiveraSanchez. (16) Todd Braid, Jim Morris. (17) Cal German, Bill Sarbaugh, Jesse Shumaker. (18) Dave Cady, Sharon Bell, Matthew Hagen. (More photos on next page)

MORE AMD (continued from two previous pages): (1) John Morrison, Joe Palencar, Mark Westlake. (2) Scott Dunst, Jason Beeker, Mike Moe. (3) Mike Ball, Brad Schmidt, John Jurcak. (a) Todd Norris, Herb King. (5) Don Houghton, Nick Carter. (6) Kristy Bumgarner. (7) Camille Silva, Hilda Pinilla, Tamara Roman.

Dunham, Craig Webb. (7) John Hedges, Miguel Gutienez. (8) Kelly

Lyon, Joe Allotta. (9) Tanka & Kelly

Chase. (10) Phil Schumock, Robert Colbert. (11) Shannon Mott, Alan Oakes. (12) Tim & Tammy Kennedy. (13) John Neel, John Allen. (14) Art Reid, Seamus O'Reilly, Pete Ganahl, Matt Kolar, Terry Adkins. (15) Tom Czlapinski, Charmaine Jennings, Michael Caputo. (16) Mike McDonough, Rusty Russell. (17) Jim

LUMBEB ASSOCIATION of California & Nevada met Oct. 22-23 althe U.S. Grant Hotel, San Diego, Ca., for its annual convention. (1) Owen Taylor, Augie Venezia, Tim Dickison. (2) John D. Saunders, John Mensinger. (3) Brad Strosahl, Jim Snakard. (4) Jim Tunentine, Jean Henning. (5) Richard & Sheryl McArthur, Frank Youngman. (6) Ken

Taft. (18) Jack Brossmer, Randy Kwist. (19) Maria & Michael Barr. (20) Daniel Fesler. (21) Laurie Vance, Bob Maurer. (22) Mike Bland, Buck Byers. (23) Rick Hogue, Jay DeCou. (24) Marv Askey, Pete Meichtry. (More photos on next page)

"DECISIONS for the Future" themed LACN's recent convention (continued from previous page): (11 Chris Brown, Jack Butler, Larry Stonum, Kelly Lyon. (2) Mike & Miya Croxton. (3) Janet & Eric Zeidrich. (4) Jeff Pardini, Tim Dickison. (5) Adam & Brea Nourani. (6) Todd Hopman, Bob Jessell. (7) Rick Roberts, Randy Kwist. (8) Karin & Tom Angel. (9) Scott Wallers, Steve Prado. (10) Rich Langton, Danny Sosa. (11) Matt Peterson, Bichard McArthur. (12) Barbara Ganahl, Mark Ganahl, Peter Ganahl, Melissa Ganahl. (13) Grant Pearsall, Larry Christensen. (14) Kathleen Patterson. Steve & Amoaro Patterson.

LUMBER TRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation.6O7o split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

LUMBER OLDTIMERS continue to meel several times a year to honor the memory of the late Joe Terrell. The latest lunch was Oct. 14, al Embassy Suites, Anaheim, Ca. (1) Ralph Cardwell, Judy & Harry Selling. (2) Ted & Betty Deacy. (3) Chuck & Audrey Lembar. (4) AIan Oakes, John Weston. (5) Jo Cogburn, Arnold Nutter. (6) Andy Eersek, Ted Pollard. (7) Laurie & Gene Burnett, Vicki Wiggins.

Rates: $1.20 per word (25 word minimum) or. if contains artwork or oversized type. rate is by the column inch (2-ll8 inches wide): $i65 il we set the type, $55 if ad is fumished "cameraready" (advertiser sets type). Phone number counts as I word. address as 6 words. Headline or centered copy, $9 per line. Border, $9. Private box, $ I 5 Send ad copy to 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 9266O, Fax 949-852-0231, dkoenig@building-products.com. or call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: lSth 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.

LOS ANGELES Hardwood Lumberman's Club at its Oct. 15 meeting in Pomona, Ca., were briefed on the National Hardwood Lumber Association's annual convention a week earlier in Boston, Ma. (1) Alan Arbiso, Darlene Peterman, Jim Gaither. (2) Charles Bohnhoff, Diane Johnston. (3) NHLA convention chairman Kevin Trussell, Nathan Osborne. (4) Bill Fitzgerald, NHLA director Charley Fiala, Dennis Johnston. (5) Charlie James, Walter Maas.

Associotion llews

( C o ntinued from page 2 3 ) Holdings, Denver, Co.

Joining them on the executive committee are chair-elect Joseph Collings, Ferguson Lumber, Rockville, In.; vice chair Cally Coleman Fromme, Zarsky Lumber, Victoria, Tx.; treasurer Linda Nussbaum, Kleet Lumber, Huntington, N.Y.; Manufacturers & Services Council chair Bill

Pohl, Princeton Delivery Systems, Canal Winchester, Oh.; Federated Association Executives chair Geri Adams, Mountain States Lumber & Building Material Dealers Association, Englewood, Co., and president Michael O'Brien, NLBMDA, Washington, D.C.

Los Angeles Hardwood Lumberman's Club will hold its annual Christmas party Dec. 12 at the Hyatt Regency, Huntington Beach, Ca.

Portland Hoo-Hoo Club will host a kid's holiday party Dec. 17 at the World Forestry Center, Portland, Or.

Portland Wholesale Lumber Association will celebrate the holidays with a Dec. 4 luncheon at Embassy Suites Airport, Portland, Or.

Callthe experts:

r Robert Moore I Jim Winward TJTAH

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For more informution fron ttdvertise rs , use the Wab site in brackets, Anfinson Lumber Sales Iwww.anfi nson.com] .................,........29 Bear Forest Products Iwww.bearfp.com] ...,,............................21 Bodyguard [www.bodyguardwood.com]......................'...........17

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News or Comments? We welcome your comments on articles or news from your company, such as new hires, promotions, new product lines, expansions or acquisitions. Email dkoenig@building-products.com or Fax this form to 949-852-0231:

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. kiln-dried for stabrlrty

.lightweight & easy to work wiih

do9-eared & square top

. beautiful natural redwood heart water based stain

. l.rctory appl,ed crrstom starn. increased color stabrlity

. end sealant red uces water ingress

r better long term weathering

1x6 Square lXO

Tnn