Merry Ghristmas and Happy Holidays

fr ues BEEN an interesting year! And, the most interesting part of the year has been the lmost recent. The industry nationally began the year very slow. A long winter gave many companies a late start, and the breakout year that many of us expected did not quite materialize. It was better certainly, but not to the level of most economic forecasts, as housing starts appear to be hitting just over the one million mark. However' any year we make money is a good year, so it has been great to see many more smiley faces of late and the industry beginning to enjoy itself again.

Once the year did get underway-and for many that was April-it became quite busy and, from what I heard, stress levels rose higher, as the industry had to deal with supply and freight issues. Many mills were reporting fully sold out. Now when one considers that housing starts were, although up, nowhere near projections, and that it was multi-family not single-family driving the starts, it begs the question of what issues will be created by an additional, say,20Vo growth in 2015, which only retums us to traditional building levels. We will realize even more clearly how much capacity has gone out of the industry.

The good news, though, is that for many states, the weather has been kinder, helping to make up for the year's late start. Those working outside have continued to frame, and outdoor projects are still getting completed into November.

Recent trade events we have visited show growing optimism and high expectations for 2015. Indeed, the mood at recent shows has been the best we have felt since the imaginary years of 2005 and 2006.l think the industry should be gearing up for another good increase next year.

That is what we need to feel in this industry-optimism and trust! For many of us, both in our private lives and our business lives, the decisions we make are based on the last seven years or so, therefore we are untrusting and hesitant to move forward and back to normalcy. There is always the fear of what is around the corner. Indeed, when the stock market crashed in october short-term, we all said under our breaths, "okay, here we go again." With Ebola, issues in Europe, the slowdown in China, we keep being thrown curve balls. In business, it makes management and company boards shy from investing for the future. Many companies are still reluctant to hire, and that does not bode well for stress levels in 2015.

We continue to see acquisitions and mergers, as owners finally, understandably have a chance of cashing in after the rough years. But it makes finding new and keeping current customers more important than ever. Here at The Merchant, we often cringe when we hear someone has been bought by or merged with another company, wondering who will be leading the charge after the dust settles. You hope you are on the side ofthe winner.

As consolidation continues, ensufe you are not reliant on a few customers. Some years ago, one client told me that they had lost their best customer-who had represented 407o of their business. Lesson be learned the hard way that you never want one customer representing more than lolo of your business. There is a constant need to seek out and acquire new business, and that is what our magazines are for. Indeed, through my business career, I have tried to never have one client accounting for more than 57o.You never know what is going to happen in life, and I never want to wake up to such news.

Lastly, thank you for all your feedback and comments to us during the year. It has been a great year and one of the most rewarding of my 14 years here. Thank you to our advertisers who have supported us-many through thick and thin-and thank you, loyal readers, for your support' I love to hear from you when something we write impacts the way you do business or helps you in your cafeer.

The new year will bring many exciting things in our industry- even here at The Merchant. Stay tunedl Merry Christmas and Happy Holidays to you and may 2015 be the year we have been waiting forever for.

Alan Oakes, Publisher aioakes@aol.com

www.building-products.com

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

Publisher Alan Oakes ajoakes@aol.com

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SUBSCRIPTIONS Heather KellY Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 CamPus Dr., Ste. 480, Newport Beach, CA 92660

U.S.A.: One year (12 issues), $22

Two years, $36

Three years, $50

FOREIGN (Per year, paid in advance in US funds):

Surface-Canada or Mexico, $48

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SINGLE COPIES $4 + shipping

BACK ISSUES $5 + shipping f,-\vrnv LBM oPenerloN is differllent. Some may have multiPle yards catering to general construction; others may be smaller operations specializirg in high-end homebuilding and remodeling. One might be expanding its product lines; another might think its current site can't accommodate expansion.

Whatever the differences, there's one thing they all have in common: the need for hardworking, efficient storage. The right buildings, sheds and racks, when selected and planned for an LBM retailer's particular site, product mix, and objectives, can meet a multitude of storage and space challenges. Plus, theY can bring newfound efficiencies, benefits and growth opportunities.

Versatile, H igh-DensitY Storage Solutions

When it comes to helPing LBM retailers of all types and sizes update their sites, expand their offerings, or open new yards, Sunbelt Rack turns to four workhorses that offer outstanding design flexibility, storage capacity, and material handling and organization efficiencY.

1. Drive-thru buildings

These covered rack-supported steel structures protect lumber and other building materials not onlY from weather damage, but from unnecessary product movement as well.

Access from one or more drive-thru aisles allows materials to be loaded directly onto the customer's truck or trailer. Direct access and streamlined handling also reduces time, labor, and risk of damage when loading product into the building.

Using rack systems to suPPort the roof increases storage capacity and makes this hYbrid set-up a far more cost-effective solution than using separate buildings and rack sYstems.

2.r-

o, L-sheds

These offer the same benefits and efficiencies as drive-thru buildings but with a smaller footprint. They can be used when a site can better accommodate multiple smaller structures than one large one, or when the capacity of a drive-thru isn't needed.

T-sheds are ideal for long-length materials like dimensional and treated lumber and engineered wood Products, and provide direct, drive-uP loading and unloading from two sides.

If two-sided access isn't needed or the site layout doesn't allow for it, Lsheds, with access from one side' provide the same storage functionality as T-sheds. L-sheds work well along property lines, or against the sides of existing buildings.

3. Umbrella sheds and three' sided buildings

These are designed for large-quantity bulk-storage of materials like drywall. OSB and other sheet materials' as well as full units of dimensional lumber and studs. The umbrella shed allows loading and unloading from two sides; the three-sided building from one. Likc the T- and L-shed alternativcs. cach structure prot ides the access option that rlorks best litr the opcration ancl uhcrc it uill be locatccl in the varcl.

4. Automated s1'stems

Whcn it colncs to nlrtcrill ltan dline ancl storagc cl'l'icicncr'. iu.ltolnirtccl systcnrs likc SLrnbclt's Poucl Bin raisc thc bar-. In ubout onL- ntinLltc. thc battcrv-opefatcd loaclcr cler ice lir llr and sat'cl1' loacls a bin rr ith luntbcr. plywoocl. rinr,l siding. MDF nroulclinu. compositc clecking. rrctal roolin-c. or other nratcrials.

Picking materials is.just as easr': They can be hancl-picked dircctll' fiom a bin or the contents of an entire bin can be automaticallr' rolled out and unloaded onto a truck.

Putting lt All Together for New Efficiencies & Growth

Thc beautv of thcsc svstents is thcir I'lcxibtlitv and hori u ell the I work togcthcr. E,ach can bc scaled up rlr down so u lunrber r ard gcts only' what it ncecls ancl u ants. Intcgrating stccl lackins anrl Po*cr [3ins to suppoft thc roofs o1'clrivc thlu builclings ancl shccls aclcls valuablc stollcc u ith thc samc loacling and cicncy ol'l'clcd by thc tunloaclins cff i[]uilclines thcntsclvcs.

Llsing thc right builcling lirr clitlcr cnt proclucts orqunizcs ntatcrials logicullt antl ncall)'. rrraking thcnt casy lirl cnrplolccs ancl custonrcrs to locutc luncl irnpror ins I'lorv thr<tLrshout thc sitc.

Thc lroucr of thcsc svstclns is how thcr nraxinrizc rn oltcration's capacin and cllicicncr,. 'l'hcsc bcncf its rcaclilv translatc into cost ancl llbor savings. salcs opportunities, and increasecl customer loyalty.

Operutiottul .suvings: With highclensitv storage. retailers can open a store on a srnall ot'pricey piecc of real estate. Easv ilccess to well organized naterials reduces time and labor entaiied in locating and handling naterials. It also reduces losses from muterial damage and employec anci cLlstonrer in.jurr'.

Sulc.s tlrirat'.r.' Having thc right prorlLrct nrir itnrl cnouglr oi it is kcy to not nrissilig out olt salcs. When cuslorlrcrs knori thcy can cprickly and cusill gct thc ltloclucts thcy ncccl u hcn thcv ncctl tltcnr. thcy will bc back tinrc ul'tcr tirrrc. In aclclition. tltcr'r.c likcly to sprcad thc wrlrd. dli, r ing in n.totc [rusiness.

Trut i.s urtd Cliut Durttcll ov,rt urtd ol)(,1'(tt( (-T l)ttrttclI Cou.stt ut tiotr tQ .\trrtltclt Rut k, .'\lltltorettu. (ju. Raoclt thent t itt .sttttltc I I- rut k t ttrtt.

Brzozowski, By Ken Raymond