Merchant Magazine - December 2009

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Happy Holidays-herets hoPing

Drnsr, AS wE ALL rrow, it has been a difficult year. But as rough as it has been, I

would like to continue our tradition of helping others less fortunate than ourselves.

Personally, these past two years have been difficult for my family health-wise, with three immediate members learning that they had cancer within a two-week spell' Unfortunately, my sister-in-law succumbed recently after a great fight, and I have been touched by the many similar stories of people I speak to during the year. It seems there is not a family untouched by cancer of some type, and that is why I have chosen this year a very famous cancer survivor-Lance Armstrong-whose foundation focuses on cancer prevention, access to screening and care, helping cancer patients deal with their emotional concerns, providing financial assistance, and giving answers and assistance on a one-on-one basis to deal with the difficult choices to be made. You can support the Lance Armstrong Foundation by running your business card in the January issue lsee page 36 for details). In past years, we have donated between $4O00 and $6,000 to a worthy cause. Your help this year will again be appreciated.

Now is it me, or has it seemed like a long year? Ijust re-read my last column and feel that in the spirit of the season I need to end the year with something more positive. So thinking... still thinking! well, let's try another approach. To recap, I suspect there are few companies that are happy with their results in 2009. Many feel fortunate to still have the lights on and the phones occasionally ringing. And this, I think, is the good news. If you have lasted this long, then it is likely you have already taken the right steps to keep operating through what might be a third tough winter.

The companies I have the most doubt about are those with deep credit lines that are coming up for renewal. One successful company told me of a stressful and accusatory visit they had recently with their banker-despite having never defaulted, being way below their maximum line of credit, and experiencing tremendous success over the last years. Having dealt in previous lives with fair-weather bankers, it is always interesting how those bankers who told you over free lunches how much they valued your business and the partnership, and how they were with you in good times and bad times, cannot get out of the relationship fast enough when the going gets tough! Shhh-don't mention the words "lumber and building materials." That sends them into a real tizzy !

Clearly there is no immediate sign on the horizon of a change in market conditions. Yet, most economists are sticking to mid to late 2010 for an uptick. In our industry, the general betting is on 2012 before we see new single-family starts hitting the one million mark again. Here at The Merchanl, wecan see the first signs of positioning for the upturn. It will be interesting to see the winners and losers over time.

For real improvement in the economy, we have to get corporate America hiring again, get people back to work, cut fofeclosures, and create greater confidence. We must also slash wasteful government spending. We are a ways from those goals today.

Yet, I am grateful that I work in this industry. I enjoy meeting thousands of youour readers-during the year. I am thankful that we have the support to have been able to bring our publications to you for over 87 years in the West and 27 ycars in the East. I cannot say thank you enough to our advertisers and our estimated 60000+ readers, for your loyalty and the thousands of friendships gained. We will continue to support the industry, providing the industrv's most up-to-date news. as well as stories found nowhere else to help you find ways to bounce back with new products and new ideas.

From our family and all of us at The Merchant, we wish you and your families the very best of the season. Here's hoping for a better 2010. KeeP strong. Cheers!

Alan Oakes Publisher ajoakes@aol.com

"'If,[RcllAllT",o,o, www.building-products.com

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

PublisherAlanOakes ajoakes@aol.com

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By Sean Ryan

How to stimulate LBM sales in 2010 The New Normal

fr vnv BE AN UNDERSTATEMENT to Isay that LBM dealers and distributors are operating on limited budgets and resources.

In trying to keep operations steady, employees may not have time to think about sales systems, tools, measurement or new potential sales channels. And, because they are going full tilt, there may not be an ongoing analysis of what's working as far as the processes and/or activities that are truly bringing in sales.

A great analogy in our industry is that you wouldn't design a home without a blueprint. And you wouldn't build that home without a foundation. Think of your business like a remodeler or architect would: your customers have to re-evaluate new codes, investigate new tools and materials, and change design preferences according to the times. You can be the architect of a whole new sales dynamic.

Now more than ever, it is important to measure every aspect of the sales cycle, such as leads, phone calls, and appointments. These activities can be combined with new tactics, such as having inside sales make outbound calls,email campaigns, and webinars-all leading to a more productive and efficient sales force. The goal should be to have outside salespeople in front of qualified prospects as much as possible.

You can execute a comprehensive sales system to make this happen. If you think about what sets LBM channels apart from retail, there is more emphasis on relationship selling, field support and training (both offered from manufacturers), and sales pull-

through.This makes regular channel communications and feedback inherently important to the sales process. In addition, to sell the endless array ofLBM ,.i, products in today's climate, '.-.: training is crucial. Take advantage of manufacturer training not only for product knowledge, but to build relationships.

Red Flags that Signal Sales Gaps

If you and your team are working the same way you were three Years ago, that's a red flag that the sales process should be re-evaluated. And, if you feel like a hamster on a wheel, working full steam ahead without commensurate results, that's very telling as well. Take time to step back and ask your team for agreement on who you are as a company, who your ideal customer is, and how you can reach them better and more consistently.

This strategic facilitation is really a self examination that may not cost anything. But a few tweaks and tactics from within may have long-lasting, powerful results. If you can't say there are four or five things you're doing differently to respond to changing times, then you are flagged!

Here are some key questions to ask about your business: What is missing inyour sales arsenal? Where are the gaps? Are leads and sales activities disappearing into a sales and measurement system or being lost in the mayhem of daily activity? Are you using all of the resources and tools at your disposal within your organization? Is your sales force infrontof qualified prospects as much as you would like? Why not? And, most importantly, are you telling your ideal customers what makes you special? These are marching orders your entire organization needs to know to stay focused and on the same page.

As an example, an innovative home plans design firm we recently worked

with used a day and a half of strategic facilitation to get their sales force in complete unity. They were able to dig into their true "unique selling proposition" as well as generate a creative strategy and tactics to go after their ideal customer.

As the light bulb moments began to fire up, areas of improvement and five or six no-cost tactics were created. They agreed upon who they are, which focused on their passion for design, and assigned some much-needed tasks on the spot. These simple tactics may include modifying the company's website, developing webinars or targeted mailings, creating vendor programs, orgetting manufacturers to partner with you.

Measurement SUstem = Leverage

Sales measurement tells you what is working and what is not. Don't rely exclusively on assumptions and the experience of your sales people to shape your sales efforts. Capture, measure, and analyze thefacts to make sure you truly know the strengths and weaknesses of your sales program. How often are you contacting each prospect and client? Does the amount of contact with a client increase sales?

The good news is there are a number of customer relationship management systems on the market that can be purchased beginning at just a few hundred dollars. One example is salesforce.com, but you can find one that works for you. Most CRM systems come with reporting and measurement tools risht out of the box.

The combination of measuring every aspect of the sales process with adding new tactics and strategies will lead to a more productive and efficient sales force. It is difficult to argue with the goal of having your outside salespeople infrontof qualified prospects as much as possible.

One way to help make this happen is with the strategic use of your inside

sales force. Utilizing an inside sales force in conjunction with your outside sales force has multiple positives for your company and your clients. First of all, you are able to leverage time and activities for maximum productivity. An inside salesperson can set phone appointments for your outside salesperson, who is typically a higherpaid employee who should spend time on the higher value activities that they were hired to do.

Secondly, you are able to provide more touch points with your clients and prospective clients. Quite simply, multiple people have the ability to be in contact more frequently than just one outside salesperson.

And finally, your customers will identify more with your company than just with the individual outside salesperson. When a customer is familiar with multiple people in your organization, it will be harder for an outside salesperson to take that contact with them if they ever join another firm. After working so hard to bring in customers, you will ensure their retention even with personnel changes.

How to Look Within

Don't be intimidated by the process-consider it a wake up callfor the entire staff. You could be sitting on a gold mine that could manifest along with the changing times. Try to maximize resources by switching staff around. For example, assign valueadded, sales process activities to someone in customer service. You could have them make l0 prospecting calls a day to support your outside sales efforts. Optimize your "people" resources. Be sure your top sellers are not wasting time prospecting or doing administrative tasks. Outsource things that are not economical for your staff to do, like technology, web development, or marketing. The tactics may be low-cost, but yield high returns.

New Channels, New Audiences

You may feel that there are additional markets for your products, if only you had the time and the resources to identify them. Jim Diffenderfer, president, Accent Truss/ Timber, a Greenville, S.C., provider of heavy timber accents and components, envisioned his products expanding to the outdoor products market, to be utilized by deck building franchises. By branching out into an entirely new channel, his business is expanding to national distribution and increasinp

sales.

With our help and contacts, Accent Truss was able to get in front of outdoor products installers to take the business from regional to national. The owner simply didn't have the time or contacts to get there. This is a case where outsourcing sales assistance made perfect sense. Now Accent is getting custom jobs all over the country. According to Diffenderfer, "We're on track to exceed last year's sales."

Channel Partner Relationships

In a down economy, there can be many disconnects between distributors and manufacturers. By using a method of strategic facilitation, these mishaps can be nipped in the bud by bringing together management and sales staffs to hammer out an agreed upon strategy between the manufacturer and distributor.

For manufacturers that offer co-op funds, it's a smart way to spend some of those funds, rather than trying to fit in an extra golf outing. Or, make it a golf outing and strategic brainstorming meeting! This eliminates the elephant in the room and gets you and the manufacturer on the same page.

Some manufacturers already do this with regular advisory board meetings made up of distributors. This is a sound suggestion for any supplier you've had troublesome communications with. When expectations on both sides are fully understood, you end up with the same marching orders to execute a go-forward strategy.

ls lt worth the Time?

Yes, examining your current methods and measuring sales are more than worth the time. It will actually save you time inthe long-run. since you can focus more on what isworking and who is making it work. Remember these tenets:

Live in the new normal-doing more of what you've done in the past does not improve sales

. Determine who you are-mission and goals

Realize that improvement means change

Measure sales in a systematic way

. Never make assumptions of what works

Your business, especially in a tough economy, should always be evolving to keep you ahead of the curve. No one wants to have to play catch up when things turn around. Remember, your selling environment has dramatically changed, which means you may have to toss old ideas and tactics out the window. And, your new set of sales tactics do not have to be costly, but simply results-oriented.

As long as you and your staff are open to change, the sky's the limit for your sales potential.

- Sean Ryan is president ofGlobal Link Solutions. GLS's goal is to help all levels of the LBM channel sell more building products, by providing sales strategy and sales execution services. He can be reached at (866) 813-8264 or sryan@ p loballinksolutions.com.

SALES-TIPS: Sean Ryan {nghf,), president of GlobalLink Solutions, discusses channel opportunities with JeffLewin, outside sales rep for Parksite Inc., North Brunswick. N.J.

Laminated wood roof decking energizes slow lumber market

According to Disdero's Gunnar Brinck, "In addition to the Redmond airport project, we have also bid on Lock-Deck jobs at the Portland, Me., Jetport; Bozeman, Mt.,airport, and another job in Virginia. I suspect these are moving forward with Federal stimulus money marked for infrastructure improvements and'shovel-ready' projects."

The decking is used for ceilings and roofs as well as balconies, mezzanines and floors. It provides elegant designs and "cathedral ceilings" for homes, churches, offices and other structures.

Miller reports that his company promotes Lock-Deck to architects and other specifiers with personal calls, samples, Disdero literature, and tours of completed jobs.

|Clovg RETAILERS wHo ARE discour\)aged with the slow pace of lumber and plywood sales are now emphasizing laminated roof decking as a unique product that offers warm aesthetics, availability and economy by combining a finished ceiling and a structural roof.

According to producer Filler King, Homedale, Id., lam decking "creates the elegance of exposed wood while also providing a load supporting deck for snow or other roof loads. Spans may be up to 24 feet."

Rob Witzel, of EWP distributor R.E.W. Supply, Ltd., St. Paul, Mn., reports relatively strong demand for the products in his market area, including recent construction of a large office building add-on and roofs for educational facilities.

Miller Lumber Co., Bend, Or., has built a reputation as a major source for laminated decking. According to Charley Miller, the company's product

of choice (Lock-Deck manufactured by Disdero Lumber, Clackamas, Or.) "has virtually no waste, and it makes an attractive appearance every time it is used."

In most applications, the lam decking is supported by glulam timber framing.

Most of the lam decking sold by Miller Lumber goes into commercial projects,includingthe new airport currently under construction in Redmond, Or. Miller says the key to steady laminated decking sales is to get the product specified by owners, contractors, and architects.

The structurally engineered product consists of two to five kiln-dried lumber laminations, bonded together with exterior adhesive to form glued-laminated decking.

Random length and long length (fingerjointed) T&G lam decking, plus a variety of face patterns, textures and finishes, broaden design possibilities.

Producers utilize western red cedar. hemlock, ponderosa pine, Douglas fir, southem yellow pine, Alaskan yellow cedar, Port Orford cedar, incense cedar. and Idaho white pine.

Lam Deck Producers

Disdero Lumber Clackamas, 0r. www.lockdeck.com

Filler King Co. Homedale,ld.

www.fillerking.com

Laminated Timbers, lnc. London, Ky.

www.laminatedtimbers.com

Timbenreld Manufacturing

Billings, Mt.

www.timberweld.com

Unadilla Laminated Products Unadilla. N.Y.

www.unalam.c0m

Unit Structures

Magnolia, Ar.

www.unitstructures.com

MAJOR REDO of the Redmond Airport incorporated laminated roof decking, finished on site.

Give your forklifts a run for the money

f, ne voun FoRKLTF-rs pur-LtNc their .Cl,weight? Regular. daily maintenance and proper operator training can help ensure that these workhorses keep performing in your yard and warehouse-and workers aren't injured.

"We know the expense our customers can incur when there is equipment downtime," said Kevin Krakora, director of product services for Mitsubishi Forklift Trucks. "By implementing just a few simple, proactive measures in day-to-day operations, companies will help improve productivity and help keep equipment running efficiently."

Krakora said that the followins items should be on every "ornpuny'i checklist:

Tires: Replace wornor chunked tires that cause jarring impacts to the wheel,axle components, load and operator. Use the proper tires for max-

imumperformance in demanding applications.

Forks: Operating the forklift truck with worn tires can also cause premature wear to the bottom of the forks. It can also jeopardize the forklift's ability to lift and create an unsafe working environment.

Transmission: Costly damage to the transmission can occur when operators ride the inching pedal, which should only be used when approaching a rack or when the brakes are applied while revving the engine (allowing the hydraulics to work at full speed). The brake pedal should be used for regular stopping when hydraulics are not in use.

Impact Damage: Assigning equipment to an operator can help track damage and who's causing it. Installing an impact monitor, vehicle speed limiter, or keyless access system are options can alsohelp reduce

impact damage.

Training: All operators should be properly trained on how to perform the required daily inspections and properly operate the equipment.

According to safety consultant Thomas Fife, forklifts are one of the most dangerous pieces of equipment in a yard-at least 100 people in the U.S. die in every year in forklift accidents. He advises clients that the following four steps can help prevent forklift injuries:drivertraining and certification, a company policy requiring forklift drivers to wear seat belts, regular maintenance of the equipment, and a safety inspection at the beginning ofeach shift.

Refresher training is also important, especially after an accident or near-miss incident in the workplace. This training should include formal instruction, practical training, an evaluation of the effectiveness of that training, and evaluation of the operator's performance in the workplace.

FORKLIFT SAFETY programs remind operators of safe use and conect maintenance.

REGULAR maintenance improves productivity and equipment performance, while lowe1ng costs.

Scoring in the Lumber Bowl

Returning after college to the home team-the yard his grandfather had purchased 60 years ago when just a college kid, himself-by 2003, Mike lusted for another victory. He spearheaded the push for renovation. "I wanted to show the community that, just because Lowe's was coming to town, we were not going tofold uP and quit," he asserts. "We decided to remodel, to step uP to the Plate and compete." He loved not only the yard but the whole idea of working closely with his family-his father, mother and uncle were onboard, as well as a sister and brother-in-law-and he wasn't about to let them down.

It worked. "Competition onlY makes you better," Mike is convinced. "It acts as a wake-up call. We cashed in on the excitement." Sales at Tahlequah have shot up since the big box opened."

ll rfrrs SxtNNer KNows a thing or IYItwo about nailing the comPetition. Mike grew up in Tahlequah, Ok., where football was big and Mike was big on football. His prowess on the high-school team won him a football scholarship to the University of Oklahoma, where he held a starting position on the offense line, sending his team, the Sooners, on to win two Big 12 championships as well as invitations to the Orange, Cotton and Rose Bowl playoffs.

So when Lowe's let it be known they, too, were on the offense, sending its scouts to build a big box just two blocks away fromhis father's store, Tahlequah Lumber, Mike traded his helmet for a hard hat of another sort and led the remodel that not only kept Tahlequah Lumber in the game but positioned it as a winner.

By going into overtime, Tahlequah was able to flaunt its new makeover three weeks before Lowe's oPened, stunning folks with a comPletelY revamped exterior and the addition of 8,000 sq. ft. of new retail sPace in whatwas once a storeroom. "We added lighting and lost the old racetrack design, moving every gondola two or three times," he laughs in retrospect.

New lines were added, too, including items like paint and appliances, to draw the all-important decision-makers of town: women. A newly added design center scored a hit with the ladies, too. In all, stock increased by 12,000 srus, including manY new items needed by home remodelersboththecore base of contractors (Tahlequah's accounts were 7 5Vo pto) and new do-it-yourselfers, whom the staff of 70 were prepared to walk through projects, from fixing a toilet

to adding a deck.

And if these homeowners felt the project was too big or burdensome to handle, voilh: installers at the ready for jobs such as insulation, and an onstaff cadre of handymen, including a plumber, carpenter and garage overhead-door expert, eager and able to tackle anything from ceiling tiles to toilets.

A profitable rental departmentlaunched when Mike's grandfather got tired of folks forever borrowing his ladder and startedcharging a fee-now stocks everythingfrom power tools to Bobcats and front-end loaders, ready to help out. And, thanks to a fleet of trucks ("Too many! And toomuch insurance!" mock-moans Mike, who cannot give them up, of course), contractors are well-served with speed delivery, to the tune of 35 or 40 runs a daY. "We don't force them to have tothink way-far out," professes Mike. "They can call ourguys' cell Phones on Friday night or early Monday morning. It's all about relationships. In fact, they come in on MondaYs to compare how they spent their weekends. They socialize together."

Tahlequah, a town of 22000 about an hourfrom Tulsa, didn't have a huge stock of custom homes sitting empty when the recession rolled around. Consequently it hasn't been hit as hard as the rest of the nation. Nonetheless, the irony of a recent victory doesn't go unnoticed bY Mike. For years he'd pushed and pushed his parents to open a second location. "I was the instigator; we finally decided to move ahead when the right location might come along. My sister and brother-in-law had justjoined the company, very capable PeoPle, so at last it seemed a sood fit."

SOONER THE BETTER: Rough-and-tumble colleqiatefootballcareerhelpedprepare Mike Skinier for the competitive lumbei industry.

So they signcd thc papers on a littlc yard in Pr1,or,,1-5 miles away-just as thc reccssion lnnounced its prescnce.

This time, thc rentodel rcquired was even more exten sive. "We scrapcd up carpct. laid new tiles. Put in u new computer system. Movcd the lsupply your own adjcctivel gondolas five or six tirncs. Doubled the lntount of lighting. added 15.000 ncw products'-evcrythingfrorn paint fo appliances. in what was now 2-5,000 sq. ft. of retail, including a new clcsign center. "And it's doing well," Mike is pleased. and relieved, to add. "Sales were up l0% the I'irst full year." an increase of S I million.

That incrcase is credited, in part, kt incrcased profit-tuning. "l'm a stickler for margins," Mikc declares. "lt's a big driving fbrcc. I don't want to leavc money on tl're table. We're not the lowest-pricc. but we offbr service and quality. and I really feel that that's what counts with most people. We'll really help you out with a product. Fol instanec. if you have a problent u,ith a power tool, we'll takc care of it-no nccd to cail an 800 nr-rmbcr."

Speaking of powcr tools. Tahlequah recently hosted a series of Friday night evcnts fbr a women's gmup that wanted to learn how tcl usc the darned things and drove in-store traffic to new heights along the way.

tMike'stcam of ernployces isn't a bunch of bcnch warmers: thcy're in thcrc. _tiving thcir all. "lt's a closc-knit group. like family," he maintains. In 1'act. ftlLrr couples have manied aftcr meetins in the staff roont. Crcdit is due to his managemcnt style. which, he claints. he lcarncd on the football field. "l was part of'a collegc tcam with a new coach rvho s()t evcryone on thc same pagc. We wrtrkccl fbr thc conrmon goocl no indiviclual attitudes or personalitics. That," hc says, "is how I learned to be a lcader."

lIe marriccl just over a year ago, but his sister beat him down the aisle ancl has added a toddlcr to the fanrily rnix. "She runs intoour mcctings and steals the show." beams her proucl unclc. "Shc's already adding to thc business I"

Bctter \lart planning ir thircl location.

(larla Waldemar cwaldenrar@corncast.net

.dt.

FRESH LOOK: Skinner is proud of the splashy new paint center, a major component of an expansive redesign.

Better living through (green) chemistry

f r vou'ne LIKE ME. the title of this collumn brings back memories o[ nerdy high school science films extolling the modern marvels of convenience, value and progress, made possible by the chemical industry. It was a huge post-war economic engine that expanded its reach into nearly every product category and helped fuel the rise of the American suburb.

There are now about 80,000 chemicals on the market, but only a few hundred have been tested for human or ecological safety. One unintended consequence is that many of these chemicals have reached into our ecosystems, including the very top of our food chain-us.

"Body burden" is the term toxicologists use to describe the toxic load an individual might be canying ata given moment: several hundred substances, some of whichwill accumulate, others that will be metabolized and excreted. Pregnant mothers pass these substances to their children.

One of the common pathways for exposure to toxic chemicals is through inhaling airborne pollutants. Most people have heard by now that indoor air can be far worse than outdoor air, and that the rise of asthma, multiple sclerosis, and other diseases could be caused by long-term, low-level exposures to the chemicals that surround us in daily life. And,of course, we spend most of our time indoors.

The LEED rating systems aim to drastically reduce potential exposures to building occupants by limiting the use of emitting materials in the first place and promoting active measures for improving indoor air quality. I always recommend stocking products that contribute to LEED credits, especially low-emitting, less-toxic products that appeal to the green builders in your area. Products like formaldehyde-free plywood and cabinets, formaldehyde-

Top 10 Green Products of 2009

BuildingGreen's 2009 Top 10 Green Building Products:

r Pozzotive Plus CMUs& concrete brickfrom Kingston Block

o Thermafiber mineral wool insulation

r Invelope integrated wall insulation &rainscreen system

r Rheem HP-50 heat-pump water heater

Convia energy-management infrastructure

Pentadyne GTX flywheel energy storage

Silva Cell subsurface tree protection & stormwater system

o Mobile solar Power generator

. Baltix recycled- & biobased-content office furniture

' Project FROG modular green classroom

freeinsulation,zero-VOC adhesives, zero-VOC paints and coatings-thelist of less-toxic alternatives is long. But the list of emitting products that would not meet LEED's requirements for indoor air quality is much longer.

I invite you now to get up (after reading the article first, of course!) and follow your nose around your store. Pick up a few products and pronounce their ingredients. Investigate the paints, strippers, cleaners, pest killers, weed killers, and plywood you stock. What is the quality of this air that you and your staff breathe everyday? There's a very good chance that some nasty neurotoxins, carcinogens, and endocrine disruptors are floating around in the mix. More importantly, the people who might be exposed to off-gassing chemicals are probably the people you most care about. Swapping out the high-emitting products in your inventory, in favor of those with zero or dramatically fewer toxic emissions, contributes to a healthier workplace with fewer liability issues.

In the long run, there are large-scale initiatives underway that will eventually lead to safer alternatives through greener chemistry. The Toxic Substances Control Act, the current federal chemical oversight regime, will likely be strengthened, giving the EPA more power to eliminate toxics and require manufacturers to prove health and safety before bringing new formulations to market. In California, the Green Chemical Initiative is undertaking a range of activities designed to make rapid progress eliminating toxics and stimulating growth of greener alternatives. However, the positive effects of these eflbrts won't be felt for years.

In the meantime, the motivated dealer can learn more about body burden, LEED and indoorair quality from dozens of informative online resources-start Googling! Scientific Certiflcation Systems, GreenGuard and GreenSeal publish lists of their certified products. There are other green product databases out there, too.

The consequences of choosing wisely could be felt immediately, leaving those you care most about breathins a little easier.

Jay TomPt Managing Partner Wm. Verde & Associates (415) 32r-0848

Alder

Apitong

Aromatic Cedar

Birch-Natural, Red & White

Cherry

Mahogany

Maple

Oak-Red, White, Rift Red & White

Pecan/Hickorv

Poplar

Steamed Beech

Sugar Pine-#2 & #3 Common

Clear Radiata Pine

Teak

Walnut

'Other species auollable bA special order

Haldwood Phnrood

AIder

Ash

Apple Ply Aromatic Cedar

Baltic Birch

Beech

Bending-Mahoganv

Birch-N'atural,*Red A Wnite

Prefinished Birch

Cherry

Ifuotty Cedar

Mahogany

Maple-Natural & White

Oak-Red, White, Rift Red & White

Quartered Red & White Oak

Pecan/Hickorv

Pine-Ihotty & Clear

Ribbon Sapele

Teak

Walnut

V.G. Fir

ExJerior ${dings

rJrecKenndge

DuraTemp

Fir-Select, Premium & Clear

Ituotty Cedar

Plywoods

ABX, ACX, AB & AC Superply

BBOES, BC, CCX P&TS, CDX

St I, T&G's CCX

Radiata Pine ACX

Shop Grades

Long Lengths & Wide Widths

MDO's & HDO's

Pre-Primed, Prefinished MDO

SkidGuard, Tuf-Tred

Fire-Retard Treated

Pressure Treated for Rot

Medium & HiAh Density Form

Sturdi-Floor

Marine-AB Fir & Mahogany

Soecialtvltems

BlazeGuard Products

Sound Board

Asphalt Impregnated Board

White BuildinS"Board

Chopping Blociks

Moulding & Millwork Items by Speclal Order

Veneers.-NBl & l0 Mil

FRP Board

Prefinished Paneling-States, Trimac

R-Max, Blue Dow Board

White Insulfoam

Hardboards, Pegboards

White, Black & fumond Pegboard

Medex, Medite FR, Extira -

MDF-Formaldehyde Free

Liteweight MDF, Medite 3D, Arries MDF

MDF, Particleboard

Underla5rment & Industrial

Melamine, Vinyl & Slatwall

Redi-sheli PB & Melamine Shelving

Melamine Edgebanding Tape

CombinationPanels

Durock & Fiberock Fire-Rated Particleboard

FSC Material Available

The rlTurn of the Year" conversation

"I just buy the stuff; I don't know exactly how much we use."

We must recognize these statements for what they are: sidesteps. Here are some responses that will get around these sidesteps:

ll rTaNv oF us Do Nor KNow how much the account base IVlwe are currently working can produce for us. Coming into a new year is a natural time to look at our account base with a more detached eye than normal, to see if we are calling on the right kind of accounts to reach our goals.

We begin our "Tum of the Year" conversation by thanking the customer for any or all of the business we have done over the last year.

"Jason, I wanted to thank you for all the 2x4 you bought from me last year. I was going over the records; we have done five cars and l0 trucks over the last 12 months."

After that, we ask the customer about their total purchases of that product.

"Jason, out of curiosity, how much 2x4 did you buy total last year?"

Assuming we didn't get all the business, after the customer gives us the total we ask, "What will it take for me to get more of your business in 2010?"

Often sellers will tell me, "He spreads it around; I'm not going to get it all." (Not with this attitude we won'tl) If we don't ask for all of it, someone else will. Or they will say, "I know how much he uses." Even better to ask a question we know the answer to.

The point is to get the customer to talk about all the possible (not probable) things they can and should buy from us. Often our customers have us in a box-"I buy all my 2x4 from Jason, my OSB from Tommy, etc." The turn of the year is a good time to break up (limiting) prejudices our customers may have about us. We go through the items our customers are buying from us and the products they can (should) buy from us.

Often customers will sidesteP:

"I really couldn't tell you how much we use."

"A hell of a lot less than before, I can tell you that."

"It varies"

.

"Are you in front of your computer? Can we take a quick look at it?"

"How much did you buy last month?"

"You must have a general idea. Can you give me a ballpark?"

"Can we set up a time to go over this?"

Preparation is key. If we are not ready for sidesteps' they will derail us. When we are prepared, these false objections fall away quickly.

Once we have thoroughly (it may take more than one conversation) gone over all inventory items, we talk about the coming year.

"Jason, I appreciate you taking the time to go through this with me. I am going to redouble my efforts to keep the best deals we have on all of these products in front of you. Am I contacting you in the right way? "

When we have finished this process with all of our accounts, we can begin to look at our coming year and decide who we will keep, who we will stop calling, and who we will spend more time with.

Many of us are working account bases that, even if we got all ofthe business, would not be enough to support us!

Time is money, and all we have as salespeople is our time. The biggest leak in most of our boats is spending time (money) with accounts that will not buy or cannot buy enough from us to be a good use of our time.

Remember, working non-buying or too-small accounts is robbing us from the time we need to find more accounts like the ones that are buying from us. In addition to time. thev drain the energy we need to generate profitable business.

We can have the "Turn of the Year" conversation with our accounts any time of year (I suggest every 90 days we re-evaluate our account base), but with 2010 around the corner, now is a very good time.

James Olsen Reality Sales Training (so3) s44-3572 james@ reality-salestraining.com

North Pacific Selling Sacramento

DC to OrePac

North Pacific, Portland, Or., has agreed to sell its industrial wood products business in Sacramento. Ca.. to OrePac Hardwood Products, Wilsonville, Or.

"OrePac and NorthPacific have been amicablecompetitors in the Northern California market over the years," said North Pacific president and c.e.o. Jay Ross. "It became apparent there would be tremendous synergies if these businesses were combined. While we weren'tlooking to sell our Sacramento operations initially, we believe our Sacramento team will benefit greatly being part of OrePac and their California strategy."

OrePac currently operates a distribution and milling operation in Fresno, Ca. "The addition ofNorth Pacific's Sacramento distribution center will expand OrePac's services to include all of Northern California, as well as our central valley customers," said OrePac president Brad Hart.

The deal was expected to close by Dec.1.

Northwest Glulam Producers Join Forces

Calvert Co., Vancouver, Wa., has taken over operations of Cascade Structural Laminators, Eugene, Or., and CSL president Steve Killgore has joined Calvert as a sales and product development specialist.

Calvert acquired CSL's remaining inventory and customer list, but none of the product names were transferred. CSL'smain glulam manufacturing

facilityin Chehalis, Wa., was destroyed in a fire May 27.

Killgore and Calvert president Doug Calvert are in the process of purchasing additional equipment in anticipation of improving markets and sales growth. "We have not decided on the location of the new line," Killgore said. "I still have the site in Chehalis, but there are other options closer to Calvert."

Green LBM Marketplace Blooms in San Diego

EcoBlu Products, Carlsbad, Ca., has opened EcoGreen Exchange, a showroom for green building products that will double as the company's new corporate headquarters.

The facility will provide exhibit space to green LBM vendors to showcase their products to homeowners, builders, contractors, architects, government entities, and other green industry professionals. Vendors will also have access to meeting rooms for seminars or training events.

"We have really seen a shift in homeowner's interest in building green, and our new EcoGreen Exchange will make environmentally friendly products more accessible than ever," said EcoBlu president/c.e.o. Steve Conboy. "It will be like having a trade show every day for the vendors we recruit to be in our facility."

The new facility in Vista, Ca., will also house a new technical support center, a coating equipment fabrication center, and research and development lab.

MossLumber & Hardware is closing its yard in RedBluff, Ca.

The four-unit chain also has listed its property in Redding, Ca., for sale at $2.2 million, hoping to lease the land back from the new owner

SantaClara Lumber & Millwork, Santa Clara, Ca., closed Oct. 30, after 85 years of business. Equipment and remaining inventory were auctioned off Nov. 18.

Lumber Baron, Albany, Ca., sustained an after-hours blaze that began in the back of its yard. The cause ofthe Nov, 12 fire is under investigation.

- Eagle Valley Building

Uupply, Baker City, 0r., will close at the end of the year, so owners Glen and Cledith VandenBoses can retire, HD Supply witt ctose its 2't-yearold facility in La Habra, Ca., at the end of January and has filed suit claiming it's being forced out so the city can redevelop the propefi.

Chester Hardware, Chester. Ca., has become a True Value franchise and been renameO Chester True Value Hardware.

Sencer Enterprises signed a 10year, $1.42-million lease for a 6,603sq. ft. store in Carlsbad, Ca., to open Ace Hardwareof Carlsbad.

BMHC Turning Over Management

As part of its plan to emerge from Chapter 1 | bankruptcy organization by the end of the year, BMC West Parent Building Materials Holding Corp., Boise, Id., will shake up its executive ranks.

Pending approval of its reorganization plan, Paul S. Street will become chief executive officer. Stanley M. Wilson will continue as president and chief operating officer. Daniel "Danny" McQuary will serve as chief financial officer.

Current chairman/c.e.o. Robert E. Mellor, senior v.p./c.f.o. William M. Smartt, and v.p./treasurer Mark R. Kailer, all based in San Francisco, Ca., will leave the company following its emergence from bankruPtcY.

"With the groundwork in Place for BMHC's emergence from ChaPter l l later this year with far less debt and an improved capitalstructure, we are turning our attention to the consolidation of administrativefunctions in Boise and implementation of a seam-

less transition in the senior leadership team," Mellor said.

A new board will also take office, consisting of Street and six independent directors-Peter C. Alexander, former head of Onco Construction

Distribution: Marc Chasman. president, real estate investment grouP Picerne Capital West; Dennis Downer, chairman. Intermountain Orient, Boise, Id.; turnaround consultant Jay B. Hunt. Sacramento, Ca.; financial services/crisis management consultant Michael A. Maidy, Sherwood Partners LLC, and Carl R. Vertuca Jr., President, real estate investment company Vertuca Group.

The reorganization Plan, which is subject to court approval, also provides for BMHC's secured lenders to convert debt into equitY, becoming majority owners of the company.

BMHC has obtained commitments for $103.5 million of exit financing to support ongoing operations and future growth, and projects its outstanding indebtedness will be more than cut in half, to $135 million, upon emergence from bankruptcy.

PL&S Buys Longview Site

Pacific Lumber & ShiPPing Co. has purchased its 41-acre lumberyard in Longview, Wa., from landlord RSG Forest Products, Kalama, Wa.

PL&S has been renting the Yard for the past four years. It paid $13.2 million for the property and will begin work shortly on improving and expanding the facilities.

TP Mothballs Plywood Mill

Timber Products Co., SPringfield, Or., closed itsWhiteCity, Or., plywood mill Nov. 25, consolidating production at its mill in Grants Pass, Or.

The firm will retain ownershiP of the White City facility, with its future dependent on market conditions.

"The market for softwood PlYwood products has changed dramatically in the past few years," said Timber Products v.p. Roger Rutan. "Timber Products will continuetooffer the same full line of softwood plywood, both commodity and specialty products. We expect a smooth transition to Grants Pass to ensure an unintemrpted flow of materials to our customers. The consolidation of this production into our Grants Pass facility solidifies our commitment to the product line."

Most of the workers from the White City mill were offered positions at Grants Pass.

North Pacific, Portland, Or., signed a letter of intent to be acquired by AtlasHoldings LLC, Greenwich, Ct.

The deal, expected to close in January, includes all ol North Pacific's operating businesses.

Fred Tebb & Sons, Tacoma, Wa., signed a three-year lease to move into the former Architectural Woods facility in Tacoma.

The deal includes an option to buythe 61,382-sq. ft. manufacturing building on 4.08 acres within 12 months, for a predetermined price.

Colville lndian Precision Pine is shuttering its mitl in Omak, Wa., this month for an indefinite duration, due to market conditions.

Lumber Country, Portland, Or., closed its business Nov. 1 and merged operations into Affiliated Resources Inc., Portland.

Mike Wilkins is president of the restructured company, Debbie Dietz is executive v.p.-finance & administration, and Jim Page and Dennis Miller are board directors.

Girard Wood Products, Aberdeen, Wa., received planning commission approvalto add 17,800 sq. ft. to its current 37,952-sq. ft. building.

A crane performing maintenance work at Weyer. haueser's Northwett Hardwoods mil in Ceniratia, Wa., toppled Nov. 1B due to operator error. No one was injured.

Capital, Denver, Co., was recently awarded exclusive distribution of Azex decking and railing in Colorado

Bluel.tltx Corp. witl now distribute composite decking from LifeTime L'umber, San Diego, Ca., throughout California.

Universal Forest Products Western Division, Windsor, Co., now distributes TitanWood's Accoya modified wood in the U.S.

Atlas LumbO[, Chino, Ca., is now a stocking distributor of Accoya thermally modified wood in Southern California,

Smith & Fong, San Francisco, Ca., has developed a soy-based adhesive named Soybond for its Plyboo bamboo plywood and flooring.

Gossen's PVC Passport and WeatherReady decking and Wahoo Decks' aluminum deck and railing products were approved for use in Wildlife-Urban Interface designated areas in California.

Simpson Strong-Tie's Steel Strong-Wall structural shearwall is now code listed for use in two-storv constructions applications.

Fiberon has broadened its distribution aoreement with CertainTeed to include the EverNew composite decking with PermaTech surface technology.

Decm Roofing Systems, Corona, Ca., earned tSo 9001:2008 certifications for its stone-coated steel roof oanels.

LP@ SolidStart@ Engineered Wood Products are designed tooutperfoim traditionallumber. They offer superior strength, durability and consistenry-with no knots, splits or voids. They're available in longer lengths than lumber as well. That means more design flexibility, faster installation and no need for culling. Plus, all are backed by a LifetimeLimited ' Warranty. LP SolidStart Engineered Wood Products. Better than lumber.

There's Lumber. And Then, There's Better.

Lowe's is building a new store on a San Francisco, Ca., site formerly occupied ny Goodman's Lumber and long eyed by Home Depot.

Lowe's is also seeking permission to build a home center on 16.1 acres in Carlsbad, Ca.

Home Depot opened a new 657,000-sq. ft. DC in Redlands, Ca., to serve about 100 stores in So. Ca.; Las Vegas, Nv.; Utah, and ldaho. Jeremy Stanwix is general mgr. Depot will open similar facilities this month in Stockton, Ca., and next year inOntario, Ca.

The chain also opened a new 90,000-sq. ft. home center Nov. 19 in N. Las Vegas, Nv.

A lumber crime spree at Southland HOme DepOt stores may be curbed. Following a 100-mph chase, police arrested two suspects who allegedly took thousands of dollars of wood from the Depot in SimiValley, Ca.

An employee leaving work at 1:45 a.m. Nov. 20 spotted the thieves and called police. When they fled in a white SUV, the worker followed athigh speed. Police stopped the car and inside found a woman, man, his 14-year-old son, and $4,000 inlumber. They arrested the adults on suspicion of grand theft and child endangerment and released the teento his mother.

Other Depots in the area had recently reported lumber thefts associated with a white SUV. Police are investigating whether the two suspects were also involved in those crimes.

Habitat for Humanity opened a ReStore discount LBM outlet Nov. 14 in Lake Elsinore, Ca., as well as a similar 12,500-sq. ft. facility called The HomeStore in Femdale, Wa. Terry Mattson is associate director inFerndale.

Square Deal Lumber, Springfield, 0r., launched a new website at www.souaredeallumber.com.

Crow's Market & Price Service

The most comprehensive markot & price service covering the North American lumber and panel market.

Ochoco Plans Pellet Plant

Ochoco Lumber Co., John Day, Or., will receive $4.9 million in federal stimulus funds to construct a wood pellet fuel plant.

The stimulus money will help Ochoco buy and install a new drying system, two pellet-making machines, and the infrastructure needed for the boiling and drying processes. The plant should be operational by the summer.

The project will permit 80 full-time jobs to be retained and will create l1 new ones.

Fire Closes Vaagen Sawmill

A Nov. 18 fire at Vaagen Brothers Lumber, Colville, Wa., damaged electrical equipment and shut down a cogeneration turbine that supplied power to the mill.

The fire broke out about 9 p.m. in the area of the plant that converts bark into steam and electricity. Authorities believe the blaze may have started in an oil-circulating pump and spread to an electrical switch gear regulating the transfer of power to and from the region's power grid. The adjacent boiler provides steam power for the mill and the turbine generator.

Vice president Russ Vaagen believes that mill operations will be restored over the next few weeks, but the cogeneration turbine may not be operational for a year or longer.

Two workers tried to stop the fire and were taken to a local hospital for treatment of inhalation of smoke and carbon monoxide.

Now every subscription to Crow's Market & Price Service includes all of these great features:

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' Crow'a Lumber & Panel Newe Service - a comprehensive & reliable daily news service covering the iatest lumber news & wood products industry developments.

BISf's Lurnber & Pq.nel Outlook - a weekly analysis of wood products markets by RISI's economists - the most trusted sourceofforecastin6J in the North American industrv.

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ASSOCIATTON

American Wood Council has formed a new, national coalition of U.S. wood products manufacturers' to work together on building codes, standards, regulations and green building policy issues.

The group, expected to formally launch January l, already has 40 supporting members.

California Redwood Association welcomed new chairman John Russell, Mendocino Forest Products, at its recent meeting in Arcata, Ca.He succeeds Travis Campbell, Mad River Lumber.

Janet Webb, Big Creek Lumber Co., was elected vice chair.

Western Building Material Association's Young Westerners group will host its annual conference Feb. 4-7 at the Downtown Hilton, Eugene, Or.

Lumber Association of California & Nevada has set Feb.24 as the date for its annual government affairs conference in Sacramento, Ca.

The first 2nd Growth meetins of 2010 will be March 4 in Buena Park, Ca.

InlandEmpire Hoo-Hoo Club has changed its name to the Southern California Hoo-Hoo Club, reflecting that the Orange County, Los Angeles, and San Diego clubs have fallen inactive.

The group will host a Feb. l7 meeting and dinner at Pomona Valley Mining Co., Pomona, Ca.

Up in Northern California, Black Bart Hoo'Hoo Club will hold its annual industry night Jan. 20 at Broiler Steakhouse, Redwood Valley, Ca., followed the next evening by Humboldt Hoo-Hoo Club's annual crab feed at the Elks Lodge, Eureka, Ca.

Farther north, crab feeds will be staged by TacomaOlympia Hoo-HooCtub Feb. 2 at High Cedars Golf Course, Orting, Wa., and by Willamette Valley Hoo-Hoo Club Feb. 5 at Shadow Hills Country Club, Junction City' Or.

Los Angeles Hardwood Lumbermen's Clubwill host its annual pool tournament Feb. 11 at Danny K's, Orange, Ca.

BluWood Stakes Out Denver

Rocky Mountain BluWood has opened in Stock Building Supply's former facility in Denver, Co., offering EcolifeKDAT pressure treated wood, Radiance thermally modified wood, and BluWood mold protection for framing lumber.

The facility, which also stocks studs, dimension, OSB' plywood, EWP and FRTW, has already been FSC chainof-custody certified by Scientific Certification Systems.

The 43O00-sq. ft. former truss plant sits on nine acres along "Lumber Row," placing it among a host of LBM distributors, including Capital Lumber and Boise Cascade.

Pat Bischel, president of parent company Northern Crossarm Co., Chippewa Falls, Wi., will also serve as president of Rocky Mountain BluWood. Ben Biffinger has joined the sales staff, which will be expanded to serve the surrounding Mountain and Plains States.

Bob Jones has rejoined Tripp Lumber Co., Missoula, Mt., selling wavy edge and log cabin siding.

Dave Carpenter has been named mgr.of Sheridan Building Materials, Sheridan, Or., replacing Don Moon. John Shoulder is new to lumber sales.

Jennifer Jones, ex-Parksite, is a new product specialist for Capital, Denver. Co.

Josh Schwarz, ex-Forest City Trading Group,is now withTalon Forest Group, Portland, Or. Larry Birmingham has opened a new sales office for Talon in Milford. N.H.

Toni Carter, ex-Idaho Forest Group, has rejoined B lue Mountain Lumber Products, Pendleton, Or. Mark L. Spargo has been promoted to v.p. of Snavely Forest Products. Greg Stewart has been appointed president of Sinclar Group Forest Products, Prince George, B.C. Mike Altendorf was named v.p. of information technology for Do it Best Corp., replacing Kay Wilc{. t\ ltl

Jesus Aldrete

Raul Aldrete

Brad Applegate

Antonio Avina

Steve Batick

Paul Blevins

Edward Butz

Jose Chicas

Rosario Chicas

Scott Crutchfield

Karen Currie

Nick Ferguson

Vince Galloway

Ricardo Garcia

Fidenceo Gomez

Elvira Hernandez

Chris Hexberg

fuan Laredo

]erry Long

Bobby Malone

Luis Moreno

Brad Mortensen

Rafael Pantoja

George Parden

Timoteo Paredes

Michael Parrella

Peter Parrella

Kurt Peterson

Eduardo Pierre

Janet Pimentel

Nestor Pimentel

Yolanda Rodriguez

Alex Romero

Bill Sharp

Angela Sorensen

Lois Tavenner

Melinda Taylor

Peter Ulloa

Enrique Vargas

Oscar Villegas

Robert Williams

PamelaWinters

Matt Wright

Terry Yarbrough

COURTAPPEARANCE: Los Angeles HardwoodLumberman's Club hosted its fall doubles tennis event Nov. 15 in Anaheim, Ca. Reps from prince brought their latest racquets for participantsto demo. lBack, l-rl Steohen Ondich. Randv Porter. Rvan Porter DanBnhannnn.tprruwirhprcnnnn \A/atrar f9t [Back, l-r] Stephen.Ondich, F?ndy Porter, Ryan Porter, Dan Bohannon, Le'rry Witnjripoon, Watter Mass' Nathan Osborne, Kyle Fitzgerald. [Front] Grace Wright, Audrey Rodriguez, Vicky Frantz, kt ilof'm,bif f fiLg""fC, O.onnOeioiO, nran.A'6iso.

liams, who retired after 3l years.

Tim Miller is now v.p. of marketing, replacing BiIl Zielke, who is retiring after 12 years.

Bea Merry is organizing the annual holiday party at Mungus-Fungus

ForestProducts, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Stanley, Black & Decker Unite

The Stanley Works agreed to a $4.5-billion, all stock merger with Black & Decker Corp. to create Stanley Black & Decker, an $8.4 billion global industrial leader.

Founded in 1843, Stanley owns Stanley Tools, FatMax, Bostitch, Facom, Proto, Mac Tools, Sonitrol, Stanley Security Solutions, Best and Vidmar. B&D, with rootsback to 1910, owns Black & Decker, DeWalt, Emhart Teknologies, Porter-Cable, Kwikset, Baldwin and Price Pfister.

Under the deal, B&D shareholders will receive a fixed ratio of 1.21 5 shares of Stanley common stock for each of their B&D shares. Upon closing, expected in the first half of 2010, Stanley shareholders will own approximately 505Vo of the combined company. The nine members of the current Stanley board will be joined by six new directors from B&D's board.

John Lundgren, chairman and c.e.o. of Stanley, will be president and c.e.o. of thecombinedcompany. Nolan Archibald, chairman, president and c.e.o. of B&D, will serve as executive chairman for three years.

Stanley's James Loree and Donald Allan Jr. will continue as, respectively, executive v.p./chief operating officer and senior v.p./c.f.o.

Stanley's base in New Britain, Ct., will remain corporate headquarters, withB&D'sofficein Towson. Md.. becoming Power Tools headquarters.

Are you enabling I incompetence?

5 5f :usr wANr MY KIDS ro BE HAPPY land to get along." We often hear this sentiment expressed among senior-generation members of a family business. Parents try to create conditions that will help ensure such an outcome, only to discover over time that some of those very efforts create the opposite result: their kids are unhappy in the business and there is conflict within and between generations, often extending between family and nonfamily management. Everyone loses in this scenario.

If a person lacks the competence to deliver on the expectations defined by the position, it will inevitably lead to stress and unhappiness. This is even

more pronounced in a family business where the person is being judged not only on a professional level, but also by parents and siblings. The child also has the added stress of feeling that he is letting down his parents. In addition, the child feels harshly judged by non-family co-workers who feel that he has not earned the position, and this is why they are not competent to deliver.

How, after you worked so hard to expose your children to the culture of the business, demonstrating by example the strong work ethic required for success and even offering summertime employment, could their contribution to the business be so limited?

Somehow, between those childhood and young adulthood experiences and their full-time employment in the business, their level of competence has not developed as you had hoped or expected. The favorable qualities of leadership, hard work, and business acumen that the senior generation demonstrated are now wholly lacking in the second generation. In short order, this work environment can quickly dissolve into resentment, disloyalty,low morale, high turnover, and numerous other negative consequences for the business.

How did this long path of incompetence develop? A path that anyone other than a family member would not be permitted to walk? While there are no definitive answers. our experience tells us that the senior generation, as well as siblings and cousins, are often enablers of incompetence.

There are a number of specific areas around which your efforts as a senior-generation member might have enabled this undesirable outcome:

Gompensation

Compensation is the most basic of business principlesbut at the same time leads to the most confusion. To

oversimplify, you work hard, have successful outcomes, and are compensated accordingly.

However, parents add confusion to the mix by rewarding their children when they need money, or when they ask for it, without evaluating what they have done to earn it. This creates a false sense ofworth and control.

Parents must replace a subjective reward process with a specific compensation policy that supports and protects all parties involved. This policy will help protect the parents from arbitrarily rewarding acts of incompetence, as well as protect the junior generation from presuming that these rewards are tied to efforts or results.

Managerial Style

In successful family businesses, the senior generation has demonstrated effective management skills that allowed the business to survive over the years. During this tenure, the business had to adapt and change based on the exigencies of the marketplace. The senior generation must have the courage to support the success of the next generation, even if it means a new approach to running the business. In fact, as timeschange, so do effective management approaches and decision-making styles. You can't lead a $200 million company the same way you led a $20 million company.

Give your kids exposure to the best management styles you can. This may mean sending your kids to work with other companies in other fields before returning to the family business (a requirement that might be stipulated in the Family Employment Policy), or simply offering your children formal educational opportunities.

Glarity Around Expectations

This topic ties into the compensation mentioned above but addresses a more comprehensive environment of expectations in the family business. For example, a Family Employment Policy defines expectations but, more important, establishes an objective, optimal hiring process that is applicable to all family members considering employment in the business. The policy also helps to satisfy that need to define one's position and contribution.

In the absence of clearly defined expectations, we (and others around us) make assumptions about what is acceptable, what is right. That is a legitimate response to ambiguity. It is the responsibility of those who participate in developing future leaders to ensure that expectations are clearly articulated, that performance measures are understood and agreed upon, and that managers will be held accountable for their actions.

As a senior-generation member of the family and/or the business, 1zour contributing "support" or "insights" may have been intended to strengthen competence, butthey have perhaps instead diluted that hoped-for result. Competence brings with it many other critical factors for people's happiness in their work and their lives; it also contributes to strong relationships with other family and non-family members in the business.

Competence cannot be inherited or anointed, but it can be nurtured and

learned. It is the outcome of a process and, given the proper tools, support, and patience, develops over time.

- Kelly LeCouvie is a senior associate of the Family Business Consulting Group, Marietta, Ga. She can be reached at (800) 55 1 -0633 or lecouvier@ efamilybusiness.com.

Reprinted with permission from The Family Business Adyisor, a copyrighted publication ofFamily Enterprise Publishers. No portion of this article ruy be reproducedwithoutpermissionof Family Enterprise Publishers.

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Raymond's 8000 Series pallet trucks now include a power steering option.

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L.A. HARDWOOD CLUB

HEARTYGATHERING at the recent d nner nreeting ofthe Los Angeles Hardwood Lumberman s Club Nov 12 at The Rib

Trader. Orange Ca [1] Chrs Kemp Charley Frala l2l Nathan

Osborne Garrison Cox [3] SteveOndich, Christa Bohnhoff

Char eyBohnhoff [4] DennisJohnston Randy Lambert. l5l Da e

Bohannon Mark Mich e [6] Dan Bohannon Alan Arb so [7]

RobertMtchel lvlatt Barrass, J m Gather [8] J m Canale. Marty

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Rosboro Medium Density Overlay (MDO) is now available in concrete form and paint grades in a variety of lengths, lay-ups and thicknesses.

For added convenience, we can bundle and ship plywood products with other Rosboro building materials, such as sheathing, studs, custom glulam and SelectJoist"'.

For sales information. call toll free: 888-393-2304.

DECK EXPO rolledinto Indianapolis, In., Oct, 28-30: [1] David Badilla, Vern Vincent, Keith Weathers. [2] Joe Holt, PeteStaal. [3] Bob Edwards,Chris Shaddy, Jeff Richards.[4]BrianOrchard, Phil Lail.[5]Jamie Kreiser, Len Kasperski. [6] Mary Grohman,MartyFajerman. [7] Scott Jefus, Brent Gwatney, Dan Neal. [8] Joel Cone, [9]

Todd Andrews, Dustin Schroeder, Brett McCutcheon, Jerry Koontz. [10] Kenneth Rouse, JackNagy. [11] Reid Borgman, Harold Pinkston. [12]Chris Johnson, Jack Krass.

(More photos on next page)

MORE DECK EXPO (continued from previous page): l'll Jay & Sue Savignac. [2] Scott Bender, Reed Huyette, Bill Beard, Brad Beard. [3] Penny Harris, Alan Oakes, Carolyn Huckabay. [a] Bob King, Scott Cathcart, Kaylynn Poplawski, Paul Young. [5] Bill Tucker,Glenn Eberle. [6] Richard Kleiner.

[7]

Jeff Adams, DickMayoh, Bill Toedtemeier. [8] Alex Hines, Beth Wright, Rebecca Bartley, Sam Hanis. [9] Eric Sigmon, Jim Boyd. [10] Arden Fuller, John Green. [11] Rachelle Shendow,BrianKincaid. [12] Michele Skyles, Jim Miller. [13] John Long, Andy Stephens, Walter Kuzmiw. [14]Dean Miller, Ron Long.

NORTHAMERICAN WholesaleLumber Associationdrew more than 1,100 industry professionals to its annual NAWLA Traders Market Nov. 5-7 in Chicaoo. ll. With462wholesalers, 467 manufacturers, and l35iervice afflliates, attendancewas down 20%from2008. [1] DavidStallcop, Mike Mordell. [2] Rex Scott, TomTaylor. [3] JackChase,John Barber. [4]Denny Huston, Janie &Buck Hutchison. [5] Tina Breen. [6] Gary Weinstein, Jonathon LaPointe. [7]Gregg Riley,Mark Palmer. [8]CarlHenoch,Anellina Manelli. [9] Brad Hatley, Leslie Southwick, Lee Greene. [10] Joe Patton,

Suzanne Hearn, Mel Lundberg, DiggesMorgan. [11] James Danielson, DaveDurst, Jud Dehart, Chris Selzer. [12] Jim Robbins, TrishRoche, Tonia Tibbets,Doug Chiasson. [13] Tom Walthousen, Leah Covington, ChuckCasey. [14] Marc Pratt, Shelley Spencer. [15] Doug Calvert, Rachel Dennis, Steve Killgore, Brian Oberg.[16] Jeff Hardy, Tom Lister, Win Smilh. [17]Jacquie Hess, TerryNeal. [18] Dan Paige, Rick Blomquist, David Tripp. [19] Chris&Allia Schofer, Dirk & Sandy Kunze. [20] Gary Bernstein, Jack Dalton. [21] Anna Andvik, Travis Jungers. (More photos on nextthree pages)

"THE FUTURE BEGINS HERE" wasthe theme of the recent NAWLA Traders Market (confinued from previous page). [1] John Lindsey, Zack Brannock, Tom Mende, Gary Fallin. [2] Romel Bezerra, Mel Lundberg, Niklas Karlson, Olga Haymes. [3] Kris Owen, Steve Firko. [4] Greg Smith, Jack Delaney. [5] Tom Merkert, Will Whittaker. [6] Jerry Huber, Angie & Dennis Wong. [7] Ryan Morrison, Jason Knepper, Dusty Hammack. [8] Mike Redwine, Calvin Biddix. [9]Chen Chiu, David Goulet. [10] DanFox,Dave Barnes. [11]Sheldon Howell, P.J. Arling,

Bob Bretz, RonHolek. [12] Abby Mann,Pete Schiffers, Edc Kjode, Bart Bender. [13] Todd Wright. [14] Steve Hollingworth, SamSanregret, Pat Colgan, Scott Gaskin. [15] Jim Tittle, John Smart,Matt Pedrone, Bernie Nugent, Vincent Micale. [16] Raymond Luther, Don Dye, Rick lngram. [17] Michael Tichenor, Richard Champagne, Jim Hassenstab. [18] Richie Paci, Joshua Kaye. [19] Bill Griffith. [20] Eric Sigmon, Brian Orchard. (More photos on nert tuvo pages)

Jim

Tom & Diane

Danny Osborne [3] George Young, Ray Miller, Loyd Bobo. [4]Craig Hyatt. Tom Gramlich, Kevin Brennan. [5] Kim Pohl, Lisa Martin. [6] Kevin Hynes, Jack Bowen, Matt Duprey. [7] Jim Scharnhorst, Wade Wheeler, Alan Shearer. [8] Russ Kimbell, Donna Allen, Chris Webb, Chris Brooke. [9]Hunter McShan, MarkJunkins. [10] Bill Schaffer, Chuck Klopp, [11]Jim Olson, Dillon Forbes,

Eric Tuson, [12] Cyndee Johnson, Lee Jimerson, Aly Kingsley,ChrisBailey. [13] Patrick Hanulak, Ken Barry, DavidJetters, Craig Combs, JonWestmaas. [14] Mark Ritz,Andreja Kutnar, Natalie Macias, Steve Boyd [15] Stephen Jones, Nicholas Drouin, Hans Fischer, Phillip Jackson. [16]Grant Vaughn, Bobby Crowley. [17] Paul Zarlman, Ryan Furtado, Stewart Clark, [18]Rick Kapres, John Pace.

(More photos on next page)

MORE NAWLA (continued from previous two pages): lll John Branstetter,

Warren. [2]

Franklln,

GLULAM GALSwithMerchant publisher (continued):[1] Robin Gardner, Savana York, Rachel Dennis, Alan Oakes, Amy McCabe, Cindi Hengstler. [2] Mark Tucker,EdList,DavidTucker. [3] Bob Berch, Marty Thomson, Tim Thorison,Mark McLean, [4] Win Smith, Susan Fitzsimmons.[5] Seamus 0'Reilly, Monica Smith, Amy Baker, Craig Sichling. [6] Paul Erickson, Racy Florence, Mark Carlson. [7]Cam McRitchie, Paul Lennon, Rob Doerfler. [8] Lloyd Pullen, David Bernstein. [9] Mirco Walther. [10] Ken Laughlin, John Davis. [11] JonAnderson, Monique Bauer. [12] Phil Schumock,Robert

Colbert[13]Mark Westlake, Denise Robinson. [14] Dick Gukeisen, Steven Sprenger. [15] Gary Zauner, Ken Tennefoss, Richard Haskell Jr., Trish Roche, Trisha Aubln, Dan Blenk. [16] Connie Baker, Lori Byrd, Kelly Matthews, Bobby Byrd. [17]Jeff Herscovitz, Cliff Thompson, [18]john Junod,Bob Edwards [19] Jason Bolstad, Monte Jensen, Tim Elbers. [20] Marty Hawkins, JeanMarc Dubois. [21]Greg Hexberg,Doug Willis. [22]John Branstetter, Jim Wanen. [23] Jim Gillis, Jeff Norman, Gary Arthur [24] David Heldoorn, Laurie Creech [25] Greg Carter, Cindi Hengsletter, Michael Kirkelie.

Rates: $1.20 per word (25 word min.), Phone number counts as 1 word, address as 6, Centered copy or headline, $9 per line, Border, $9, Private box, $'15, Column inchrate: $55 if art furnished "camera+eady" (advertiser setsthetype), $65 if we setthetype, Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info,call(949) 852-1990. Make checks payableto Cutler Publishing, Deadline: 18th of previous month.

To reply to ads with private box numbers, mail or email conespondence to boxnumber shown, cio The Merchant Magazine. Namesofadvertisers using a box number cannotbe released.

SALES REPRESENTATIVE WANTEI)

We are a well-established master distributor of our parent companies' highquality commercial construction and manufacturing products. As a dynamic and motivated member of our team you will be responsible fbr all sales activities, from lead generation through closing while traveling in an assigned regional southwestem territory. You will be challenged with broadening existing customer relationships and expanding the customer base in the market area. You will work with an energetic, arnbitious and dedicated sales support team to achieve targeted goals in customer satisfaction, revenue generation, and long-term account growth. Send your resume to dkoenig@building-products.com or toBox 714, c/oThe Merchant Magazine,4500 Campus Dr., Ste. 480, Newport Beach. Ca. 92660.

LUMBER TRADER

We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation.607o splitfor trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

up Eost of the Rdckes

Wayne C. Wilson, 92, retired owner of D.C. Essley & Son, Los Angeles,Ca.,died Nov. 22in

Fullerton, Ca.

Mr. Wilson graduated from Whittier College, Whittier, Ca., where he was inducted into the school's Athletics Hall of Fame. During World War II, he served as an officer in the Navy.

In 194'7 , he joined the family lumber business, which started as a lumber brokerage and evolved into a wholesale operating focusing on redwood and ponderosa pine products. He retired and closed the business in 1986.

Keith E. Chase, 82, retired coowner of Matheus Lumber Co.. Woodinville. Wa.. died Nov. 14 in Kirkland, Wa.

Mr. Chase began working at

Matheus in 195l.In 1964, he and Mike McEnvoy bought the companyfrom his father-in-law, Bill Matheus. He sold the company in the late 1990s and retired.

He was a long-time member of Seattle Hoo-Hoo Club.

George Edward Cilker, 89, retiredowner of Pine Cone Lumber, Sunnyvale, Ca., died Nov. 12 in Los Altos, Ca.

Mr. Cilker attended Stanford University before becoming a pilot with the Army Air Corps during World War II. After the war, he partnered with his brother-in-law Wesley Hubbard and Chet Johnson in Hubbard & Johnson Lumber.

In 1959, he and his wife, Elizabeth, started Pine Cone. He retired in 1995 and left the company to his three sons.

DATE Book

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

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

Western Hardwood Association - Dec. 10, board meeting, Portland, Or. ; (360) 835-1 600; www.westernhardwood.com.

Los Angeles Hardwood Lumberman's Club - Dec.12,Christmas party, Hyatt Regency, Huntington Beach, Ca.; (714) 671-3079.

Portland Hoo-Hoo Club - Dec. 17, holiday party, World Forestry Center, Portland, Or.; (503) 647-5011.

Seattle Hoo-Hoo Club - Jan. 5, crabfeed, Wib Rover Restaurant, Kirkland, Wa.;(425) 883-2777.

Arizona Home & Garden Show - Jan, 8-10, Phoenix Convention Center, Phoenix , Az; (877) 663-61 86.

Colorado Springs Home Building & Remodeling Show - Jan. 810,Norris-Penrose EventCenter,ColoradoSprings, Co.; (800) 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.; (818) 571-9012.

Do it Best - Jan. 13-15, winter conference, Orlando, Fl.;(260) 7485300; www.doitbest.com.

Seattle Remodeling Expo - Jan. 15-17, Washington State Convention Center, Seattle, Wa.; (800) 374-6463.

Western Pallet Assn. - Jan, 16-19,annual meeting, Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca,; (360) 335-0208; www.westernpallet.org.

Budma 20{0 - Jan. 19-21,intemational construction fair, Poznan, Poland; (317) 293-0406.

nternational Builders Show - Jan. 19-22, sponsored by National Association of Home Builders, Las Vegas Convention Center, Las Vegas, Nv.;(800) 368-5242: www.buildersshow.com.

Black Bart Hoo-Hoo Club - Jan. 20, industry night, Broiler Steakhouse, Redwood Valley, Ca. ; (7 07 ) 621 -4852.

Humboldt Hoo-Hoo Club - Jan. 21 , crab freed, Elks Lodge, Eureka, Ca.;(707) 832-9039 or (707) 443-7024.

Guardian Building Products - Jan. 24-26, market, Caesar's Palace, Las Vegas, Nv.; (800) 5694262; www.guardianbp.com.

Tacoma-Olympia Hoo-Hoo - Feb. 2, crabfeed,HighCedars Golf Course, Orting, Wa.; (253) 531-1834.

Surfaces - Feb. 24, Sands Expo & Convention Center, Las Vegas, Nv.; (972) 536-6358; www.surfaces.com.

Panel & Engineered Lumber Expo - Feb. 4-6, Omni Hotelat CNN Center, Atlanta, Ga.; (334) 834-1 170; pelice-expo.com.

Western Bullding Material Association - Feb. 4-7, Young Westerners Conference, Downtown Hilton, Eugene, Or.; (800) 956-7469; www.wbma.oq.

Willamette Valley Hoo-Hoo Club - Feb.5, crab feed, Shadow Hills Country Club, Junction City, Or.; (541)688-6675.

Calibmia Industrial Woodworking Expo'Feb. $6, LosAngeles County Fairplex, Pomona, Ca,; (828) 459-9894.

Los Angeles Hardwood Lumberman's Club - Feb,11,pool tournament, DannyK's, Orange, Ca.; (626) 445-8556.

Remodeling & Decorating Show - Feb. 13-14, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950.

American Architectural Manufacturers Association - Feb. Itt-17, annualconference, JWManiott Desert Springs,Palm Springs, Ca.; (847) 303-5664.

Windv weather is rarelv a boon for rhe building in-dustry. But this winter, f6r Ed Hayes, owner of Ricci Lumber, Portsmouth, N.H., the windier, the better. Ricci recently installed a wind turbine atop its lumber warehouse. "The wind turbine is directly wired into the grid," Hayes explains. "Whenit'swindyout, it's making power and basically turning our electric meter backward."

Although the Swift building-mounted system may ease just 57o of Ricci's $3pOO-a-month electricity bill, it can potentially generate power 24 hours a day and be "net metered," meaning any excess power produced is streamed out to the utility company, earning the company credits.

Previously, Hayes had investigated the possibility of using roof-based solar photovoltaic tubes to help with energy costs. But when a contractor customer suggested a mounted wind turbine, Hayes immediately thought of the constant wind that blows in from nearby mill pond.

So, unlike typical turbines that are placed on 30-to60-foot-tall poles, Ricci's was installed on top of the roof ridge, 35 feet off the ground, and oriented toward the pond. The aluminum pole is in fact 16-feet long, but was mounted to the truss structure under the roof and propped up above the roof peak roughly 8 feet (so only the actual wind-catching turbine is visible outside).

Ricci has been an industry pioneer in the green movement-converting its trucks and forklifts to biodiesel, urging employees to carpool, applying for FSC certification-but the sky-high rooftop contraption is something that will catch the community's eyes, as well.

"The turbine seemed like a statement we could make," says Hayes. "It's visible and shows our commitment to sustainable, recyclable practices."

And, he adds, "Having a visible symbol on top of the building would maybe lead other people to do the same thins down the road."

Ricci's may be the first commercial wind turbrne rn the area, but it won't be the yard's last experiment aimed to help the business and the environment. "We are trying to lookatour operation and make small steps that in the cumulative will amount to significant changes down the road," Hayes notes.

One green step at a time.

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Inteplast Group [www.tufboard.net] ................3

lpe Clip Co., The [www.ipeclip.com]................. .............38

Jones Wholesale Lumber Ioneswholesale.com].....................................21

Kelleher Corp. [www.kelleher.com]....................................................Cover I

Keller Lumber Co .................................23

Krauter Solutions [www.krauter.storage.com] .............................catendar 16

LP Building Products [www.lpcorp.com] ..................,......,.....,......catendar 18

Manke Lumber Co. [www.mankelumber.com]...........................................27

Matthews Marking Products [www.matthewsmarking.com] .........catendar6

Norman Distribution Inc. [www.normandist.com].....................................17

Parr Lumber....... ..................................22

Pennsylvania Lumbermens Mutual Insurance Co. [www.plmins.com].....3

Plastic Components Inc. [www.plasticomponents.coml.............carenaar 20

Redwood Empire [www.redwoodemp.com].. ...catendar 22

Reel Lumber Service [www.reellumber.com] ............................................37

RlSl [www.risiinfo.com/crows]....... .................................20

Rosboro [www.rosboro.com] ...............................30

Simpson Strong-Tie [www.strongtie.com] ........................,.............Cover lV

Swanson Group Sales Co. [www.swansongroupinc.com]......7, carencar 24

Taiga Building Products Inc........................ ...................23

Thunderbolt Wood Treating [www.thunderboltwoodtreating.com].........26

Ultimate Escapes [www.ultimateescapes.com/merchant] .............Cover lll

Van Arsdale-Harris Lumber Co. [www.vanarsdalehanis.net]..................26

Viance Iwww.treatedwood.com]

Calendar 8

Western Woods Inc. [www.westernwoodsinc.com].....................carenoar 26

Yakama Forest Products [www.yakama.forest.com]................................25

t Available in brown, black or grey colors, I l00o/o maintenance-f;ee fstening system. t Achieve fawlqs beauty with no visible fateners. t No worrying about nail pops on the decking surface, t Compatible with hcdwood & composite decking. t Awilable *ith a sainless seel insert molded inside for added strcngth. phone (864)-902-8818 toll free L-866-427 -2547