The coast is clearing

f, u-eN OsrEeN rs PEFRING into the lA.future. Is that a lisht at the end of the tunnel he spies-i'or is it a train wreck looming? As the executive vice president of East Coast Lumber, he's preparing for both outcomes.

The Fort Pierce, Fl.-based company has weathered both extremes in the decades since its founding in l9O2 by Allen's great-grandfather. That gent, who owned a yard in in East Central Florida, foresaw strength in numbers, so he hooked up with several other like-minded owners in nearby towns to unite as East Coast, with operations in St. Petersburg, Ogala and Cocoa.

During the next decade, they added sites in Miami, Stuart and elsewhere-"growing substantially," as Allen relates, "until the land bust of the '20s," when downsizing became the necessary order ofthe day. (Sound familiar?) By the '60s, a truss plant had been added, then another (consol- idated into a single unit recently), serving the six yards then operating in the '80s, currently consolidated into live. Today's ongoing recessionAllen actually uses the D word for the state of things in Florida-has reduced employee count from a high of 300 to a 60 working-smarter staff-"like losing family," the boss regrets, "but essential for survival."

A fourth-generation owner such as he doesn't throw in the towel when things look bleak ("Hey, I'm too young to retire!" he explains with a laugh.) Instead, he makes positive changes. And that's exactly the route East Coast has taken. Voila-down the tunnel, that glimmer of light is looking stronger. Slowly, steadily, business is gaining speed. "We're up 2O7o from last year," Allen reports.

What drove the turnaround? Not one sole Aha! moment-that's only in the movies-but a succession of smart little tweaks. East Coast hooked up with Ace, for one, enhancing its depth and breadth of SKUs-"making us a full-fledged operation"-beefing up hardware, especially, to better serve its strong base of contractor customers, but also-fringe benefit-for the first time, luring d-i-yers to the company's stores as well.

Second, the outfit decided to invest in a new computer system. "This gives us a lot more information on sales, margins, inventory turns, and such. It helps us better manage accounts receivable, too." And it allows contractors to use its enhanced website to access product info and pricing at their convenience.

East Coast also seized an opportu- nity to launch its own, new millwork division. It approached a father-and-son business with an offer to take them under the East Coast umbrella, a win-win scenario that's proved a boon in scoring the upscale remodeling projects that are still moving ahead by moneyed homeowners who haven't felt the pinch. "They've got the cash to spend and want our custom crown mouldings, doors and such," Allen reports.

Add those offerings to the output of the roof- and floortruss plant, which serves contractors and other dealers in a wider geographic range, and you're now talking about onestop shopping. Especially when you figure in another smart addition: a new, full-scale lawn and garden department: "plants and trees, as well as mulch and pavers," explains Allen-"another step that's really paid off for us."

Sure, the big-box boys are shouldering into the territory, but East Coast outshines them with top-notch service and a long, strong channel of knowledge. "Many of our people have been here their whole careers. Contractors come to them with questions on their projects, how to handle them-the best materials for the job, the latest and greatest-and our people have the answers.

"It's still a strong relationship business," he underscores what many of you already know by heart, "and East Coast excels at that with outside salespeople who regularly pull up to jobsites to do what needs to be done. "To attract and keep accounts, communication is all-important," Allen declares. "And that's also where our new computer system can help. It keeps contractors informed about what the market is doing-like, commodity plywood and 2x4s. Everybody is working on slimmer margins these days just to get the job, so it's even more important to keep abreast on prices."

Each of the five locations serves a slightly different demographic base, but these days, remodeling-especially in the upscale communities-is carrying the business. "Those customers are more interested in quality than price, especially in the millwork, and they like the expertise we can bring." This stream is augmented by East Coast's ongoing commercial accounts. "We've built great relationships with various municipalities, school boards, and that business has continued to be a little stronger," Allen notes. "There's some stimulus money out there," to feed the fire.

But not enough. This owner's big complaint-yours, too, perhaps-is that banks aren't lending, a Catch 22that's holding up the industry's recovery. But Allen is determined to follow the footsteps of the three generations who have gone before him, joined by his cousin, Don, who serves as president, and Don's son. "We all wear many hats these days, share different areas. It's what we have to do."

And it's working. "Last year started up strong, then fizzled. This year, we're seeing steady increases month to month."

Sounds like the light at the end of the tunnel to me.

Carla Waldemar cwaldemar@ comcast.net

By fames Olsen