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Special Features 8 FEATURE STORY
HOW TO DOUBLE YOUR DECKING SALES IN 12 MONTHS
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• TRADERS MARKET TO CHICAGO • GAUGING LUMBER MARKETS • SETTING CREDIT LIMITS • TOPPING TRANSACTIONAL SALES • FOREST CARBON ACCOUNTING
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16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES
LATEST IN COMPOSITE DECKING
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TOTALLY Random By Alan Oakes
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www.building-products.com
A publication of Cutler Publishing
What do you want to be when you grow up?
I
CAN IMAGINE nothing better than finding the right career and being extraordinarily happy. I wonder how many of us find that. When I’m asked if I followed my dream path, I’ve always replied that I never had the imagination to know what I wanted to be; everything good and bad just seemed to follow on from the job before. When I was 19, my immediate path was determined to a degree when I decided that I wanted a car, but could not afford one. So I began looking at sales positions that offered a company car. Soon after, I became the proud driver of a brand new station wagon, all paid for. At 22, after getting married the year before and with a baby on the way, we needed to buy a house. To do that, I had to up my earnings and get paid by a combination of salary and commission. The more I sold, the more I earned. Naturally, I then needed more, and to do that I needed my first management job, so at 24… You get the idea. Of course, by 50, I was completely burned out. Would I swap any of it? No! But I sometimes regret that I could not find a life balance. It took me to my 60s before I finally got it. I am a true Baby Boomer. In today’s workplace, we have three or possibly four generations working alongside each other, and each looks at the other with increasing incredulity. Interestingly, you read regularly how this industry is not attracting and retaining enough young talent, and this was a topic at the recent NAWLA executive leadership conference. As the industry moves back into a growth mode, I see a number of companies are concerned where they will find their new leadership. Many of the new Gen Y’ers (born from 1979 to 2002, with 70 million strong) are now hitting the workforce in large numbers. They currently comprise about 14% of the workforce. They are quite different and have different expectations from my generation, as well as the Gen X’ers. As a seasoned manager, I imagine it would be difficult to manage this new generation, one that’s incredibly sophisticated, especially technology-wise, and that wants to work, but doesn’t want work to be their lives, like me and many of my generation. Gen Y members are more racially and ethnically diverse, and they are much more segmented as an audience, aided by the rapid expansion of cable TV channels, satellite radio, the Internet, e-zines, etc. They have no compunction in changing companies or even careers, making them difficult to retain. Indeed, they don’t expect to stay in a job long. And, because of my generation’s hire-and-fire mentality, they see no value in loyalty. They are also very sure of themselves and their abilities, appearing to want to run before they can walk, disinterested in long-term projects, preferring to multi-task, and — due to how they were raised, with no downtime and one at-school or after-school activity after another—getting bored easily. They are both high performance and high maintenance. More importantly, they possess a confidence in their own value that may not match our view of them. We are used to a command-and-control style of management, yet they grew up differently. We never questioned our parents; they grew up challenging everything, and they are now doing the same in the workforce, aggravating perhaps their different generational manager. They love their independence and are unafraid of challenging the status quo. They text the person in the next cubicle, when we would just get up and actually talk. They also want great flexibility in how—and when—they work. This alone may be our industry’s hardest challenge. Unlike us career-minded Boomers, Gen Y wants their jobs to accommodate their lifestyles and family life. They love working when they want to work, enjoy telecommuting, or feel they’re entitled to the corner office after six months. In the end, they want a place to show their creativity and independent thinking, where they can work collaboratively and with great flexibility. After 9/11, they saw that life can be short and should be valued more. I deliberately framed this column with a “we”/“them” slant, since it’s become clear there is a divide. This is our future. Every company will have to determine what it will or will not do. Many companies will have to change. According to a recent survey, 60% of companies are experiencing generational divide, and 70% of older employees are dismissive of younger employees and their abilities (and, I suspect, the other way round, too). Somewhere the two must meet and find an “us.”
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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 Other countries, $60 Air rates also available.
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Building-Products.com
FEATURE Story By Bill Ross, Fiberon
How to double your decking business in 12 months
O
the North American Deck and Rail Association, I recently presented a talk to a large group of independent lumberyards on how to double their decking business in 12 months. I used four case studies to illustrate the diverse thinking and actions that defined winning strategies in four very different dealer scenarios. Each one had seemingly insurmountable challenges. Dealer 1 had a good location, but it was on a busy road and was hard to physically access. Exterior signage and displays are not permitted. The sales team was initially not focused on the category, and the store was not N BEHALF OF
consumer friendly. Merchandising was uncoordinated, displays were not updated, and it seemed to be the repository of every deck and rail display in existence. Dealer 2 shares a physical parking lot with the nation’s largest big box retailer of building materials. If that wasn’t enough, both stores sold many of the same decking and railing products, and the big box had lower prices on several of those core products. Dealer 3 was a small stand-alone decking retailer. It was visible from the interstate, but was a destination location and far off the actual access road. The store was surrounded by
BEST-IN-CLASS dealers start selling the dream at the front door with displays that go way beyond the functional. Photos by Bill Ross, Fiberon
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larger, stronger, multi-yard companies that invested heavily in advertising and had sales teams that were pretty good at selling decking. Dealer 4 was located 20 miles outside the key population center. It had a remote location on a back road, with a small interior space and limited yard area. In spite of the challenges, each dealer achieved success that dwarfed the topic of doubling their decking business. What did they do? How did they beat the odds? What were their strategies and tactics? Did they incur significant incremental costs? What synergies did they enjoy? What relationships did they leverage? And—the real question from the room—were their successes reproducible so other dealers could do the same? In reviewing the success of the case studies—each so different from the other, the first and the third examples were the result of developing and executing well-formed plans. The success of the other two companies was the outcome of an evolutionary process, a modicum of luck, and a lot of hard work. At first glance, the only common thread was the category in which they competed and that they enjoyed enviable success. But, the different situations, the dissimilar circumstances, and the varied approaches did have common themes, and because of that they can be replicated. Using the framework of the Consumer Relevancy Model explored in The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (Crawford and Mathews), Building-Products.com
the diverse paths to success in their dissimilar circumstances could be clearly seen, along with the patterns and competitive advantages upon which each built their successes. The Consumer Relevancy Model states that every commercial transaction has five defining attributes: price, access, product, experience and service. The book refutes a widely held belief that great companies are or should try to be great at everything. The research exposes that greatness in all five attributes is confusing, illogical and unprofitable. The sweet spot of great companies, regardless of the industry, is that they dominate in one attribute, differentiate in a second attribute, and target industry par as the goal of the other three. The Consumer Relevancy Model explains how subtle but defining differences in strategy between similar companies (e.g., Walmart and Target) result in unquestioned brand superiority within what seems like the same space. None of the four case study companies were great at everything, but they did each dominate in one attribute, differentiate in a second, and were at industry par with the other three. Most importantly, each company stood for something. They knew what that was and they conveyed consistent messaging to internal and external customers. Their successes, whether the result of a carefully crafted plan or the outcome of evolutionary effort, clearly fit into the Consumer Relevancy Model. Let’s dig a bit deeper into the dealer that shares a physical parking lot with the large national retailer of building materials and what that dealer did to enjoy unprecedented success. If we were to summarize the strategy that resulted in success, in light of The Consumer Relevancy Model, it might look like this: Dominate – Access Differentiate – Product Industry Par – Experience, Price, Service The dealer dominates in access, differentiates in product, and operates at industry par in experience, price and service. Access. Instead of thinking of the big box as stealing traffic, they viewed it as raining potential customers upon them. If the customer who traveled to the common parking lot could be enticed to visit them after leaving the big box, they would be leveraging a high volume of traffic that they could never afford to buy themselves. To do Building-Products.com
SELLING ACCELERATES once inside the store. There is no mistake that decking is a central focus of this retailer.
this, the dealer positioned a large, highly visible sign on the side of their building facing the competitor. It read, “The Deck and Railing Experts.” The tactic is similar to the cartoon where a mega hardware store moves in next to the mom-and-pop store. The mega store sports a really huge “Sale” sign on its facade, so the mom-and-pop store places a large red arrow and, alongside it, the word “Entrance” above their door. The strategy worked well and traffic was strong. Product. Both retailers stocked identical product lines. How did that provide an opportunity to differentiate? Rather than see this as an insurmountable obstacle, they saw this as a competitive opportunity. Despite carrying the same product, the big box retailer was limited, competitively, in several ways. First, because of space, the big box could only offer one color in stock. Second, and importantly, because of aisle size and the fact that everything had to fit inside the store, it could only inventory decking in 8’, 12’, and 16’ lengths. The big box did have a competitive price on the one color it had in stock. The 8’ and 12’ decking were loss leaders, which created an illusion of ultralow pricing. If you looked beyond the loss leaders you would find that the 16’ decking in-stock was about the same in both stores, while the special order 20’ decking, fascia, riser and railing materials were a lot higherpriced. The independent retailer also stocked two other colors that the big box had to special order and charge more for.
Experience. The dealer, with help from its suppliers, built attractive outdoor displays on an unusable sloped hill. Each display was well-appointed with railing, lighting and signage. They were attractively designed and inviting with furniture and fire pits. Consumers didn’t have to imagine what products would look like, they could see completed projects. Price. They chose to not compete on a per lineal foot basis, which would force them to explain the competitor’s loss leader strategy. The dealer conveyed their pricing on a per square foot basis, using a 20’-by-20’ deck as their model. They showed both stores’ material lists and retail pricing, side by side. This merchandising of pricing positioned the independent as competitive to lower on decks that used 20’ decking and did not use 8’ decking. Service. The independent retailer’s sales staff was well trained on deck products and deck design. They invested with manufacturers in semiannual training events for staff and builders. Local building inspectors were invited to teach code basics, permitting process, etc., to the sales team. They were equipped to demystify the process, they could help a d-i-yer successfully navigate the entire process or put a homeowner in contact with a professional deck builder who could execute the entire process. They leveraged both the strengths and the weaknesses of their competition in their own favor. This was an evolutionary process for the dealer, but in retrospect, the reason for its success is clear. The independent sells
May 2014
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SUPERIOR MERCHANDISING of high-margin accessories encourages the selling of high-end accessories and the whole job.
20 times more decking, railing and accessories than the big box store. Talk about being given lemons and making lemonade—this dealer owned it. Each of the other case studies is as creative in thinking, but pragmatic in execution—and equally successful. So, how would you go about doubling your decking business in 12 months? It requires, first, a deep selfevaluation. Ask yourself how committed you are to success. If you think you are 110% committed, then the lessons of toward, to and through will make sense. They were taught to me by Jesse, my son. That I learned those lessons playing disc golf is not important; ball golfers have learned these same lessons. Toward. Toward lacks focus. It attempts, but it is not committed. Its efforts are merely in the general direction of a goal, but has no defined goal, and relies as much on good fortune as skill. This is the effort of the masses. To. To is focused. The vision is clearly upon achieving the goal, and it depends on skill, not luck. It strives for success, but it is not fully committed and too often falls just short at the very moment of success. Through. Through accepts the risk of overshooting, but will not risk falling short of the goal. Through never falls short. Through is the effort of winners. If you are not 110% committed, find another area in the business where you can apply that degree of commitment. What separates you from your competition and far greater success than you are currently enjoying? My
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experience suggests it’s much less than you think. I am reminded of the difference when the temperature of water increases from 211˚ to 212˚. It flashes from liquid to gas and increases 1,600 fold in volume. One single degree makes all the difference. There is a tipping point. To double your decking (insert any category) business, you must fully commit to winning and seeing it through. You must shoot through your goal. What’s the first step? Deeply evaluate the marketplace in which you compete. Why deeply? Because it’s too easy to fool yourself and find the answers you already believe are the truth. Deep, honest evaluation asks you to assume nothing as a given, but to ask the hard questions and to listen, to understand and see with new eyes. Who are your current customers? How strong are your relationships? Really, how do you know? Who isn’t your customer today that you want to have buying from you? How strong are they with their current supplier? Why aren’t they buying from you? Do you know what they really think about your business? Who are the competitors? What are their strengths and weaknesses? How do they see you? Where are you weak and strong? Do you have the right products? Are you confusing customers? Are you buying the best way? The list goes on… Are you able to ask and listen to the hard truths of why they are not doing business with you? Are you able to elicit, receive and welcome criticism? Will you allow yourself to see yourself through the customer’s eyes? A deep market analysis is followed
May 2014
by a willingness to see things as they are in the eyes of others, then to get in front of the right people, ask the right questions, and listen for the truths (opportunities) in their answers. This can be time consuming if you are deep in the fray, but it can be done. There are numerous professional resources to help you develop your plan. Some are free. Manufacturers can be a good resource for free local market information. Informal customer councils can provide great information. Look to NADRA as a resource for higher level data. There are market intelligence resources available through a number of resources like Principia and Freedonia. Increasingly, there are third party experts like Lanies LBM Solutions and others that have taken this exact topic as the 100% focus of their company’s mission. This full presentation, including the case study, is available upon request via GoToMeeting. I’ll finish with a story about Larry Walters, one of my personal heroes. Larry was a truck driver living in California who always dreamed of flying. On July 2, 1982, Larry finally did what he dreamed of for so long—he was flying. We first found out about him when a plane flying to LAX reported seeing something flying in the approach corridor that was not supposed to be there. A report from the crew of a second plane had the FAA scramble aircraft to investigate. It was Larry Walters. He had attached 43 helium-filled weather balloons to his aluminum lawn chair. He was also equipped with a BB gun, a CB radio with which he maintained ground contact, a couple of peanut butter and jelly sandwiches, a six pack of beer, and a parachute. He heard all the reasons why he couldn’t fly and ignored them, completed extensive planning, and, with unconventional execution, accomplished his dreams. Upon landing (and as he was being handcuffed), reporters asked him if he was afraid. He replied, “Yes, wonderfully so!” When asked if he would do it again, he answered, “No!” And when asked why he did it, he replied, “You can only dream about something so long. Eventually you have to decide to do something about it.” I invite you to share your stories with me. Good selling. – Bill Ross is v.p. of sales for Fiberon, New London, N.C., and president of the North American Deck & Rail Association. Reach him at billr@fiberon.com. Building-Products.com
PRODUCT Spotlight Outdoor Living
The latest in composite decking
B
Y ALL ACCOUNTS ,
2014 promises to be a good year in outdoor living—a category that’s projected to reach $5.7 billion in sales by 2016. Manufacturers of composite decking are taking note. “Decks and porches are now considered true extensions of a home’s living space,” says Adam Zambanini, v.p. of marketing for Trex. “People are realizing that it’s far more economical to expand their living space outside than to enlarge or renovate their home’s interior.”
TIMBERTECH’S new Legacy Collection is a fully capped composite with the color and grain of fine hardwoods.
GOOD LIFE composite decking from Fiberon has a protective, three-sided capped surface that resists staining, fading, mold, and mildew.
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Not surprisingly, Zambanini believes that composite decking will be the first choice for homeowners. To simplify the decision process, the company has reorganized its products into three distinct groups—Select, Enhanced and Transcend—allowing consumers to choose the product that best meets their outdoor living needs. According to Zambanini, composite decking is also popular with consumers who care about sustainability and the environment. “Composite decking provides the look and feel of real wood, but without the environmental impact, making it the ideal choice for today’s eco-conscious consumers,” says Zambanini. “Upkeep is hassle-free and requires no sanding, staining or painting. Food and drinks wash off easily with just soap and water.” Maintenance is even easier with today’s new hard-shell technology,
May 2014
which minimizes upkeep and offers the look of wood that has been painted or stained. TimberTech’s new Legacy Collection, the latest member of its Earthwood Evolutions line of fully capped composite decking, has the color and grain of fine hardwoods. “This collection represents the most authentically unique styles in capped composite decking today,” asserts Toby Bostwick, director of product management at TimberTech parent CPG Building Products. “It brings a richness and elegance reminiscent of the days of hand-crafted wood floor planks you would see in a fine home or charming historic barn.” Fiberon’s newly introduced Good Life composite decking has a protective, three-sided capped surface that resists staining, fading, mold and mildew, while targeting value-con-
MOISTURESHIELD PRO deck boards were designed to meet consumers’ preference for capstock composite decking. Building-Products.com
Don’t Forget the Finishing Touches
ARMADILLO LITE composite decking, made by Rhino Deck, is 20% lighter than comparable composite boards.
scious consumers. “The new Good Life line delivers exceptional performance and value, making it an economically viable alternative to a whole new segment of the home-owning population,” says Doug Mancosh, president of Fiberon. “Our channel partners will see a new wood-alternative customer walk through their doors now that a high-performance decking option is available at such a good price.” Another new entry in the field of capped composites is MoistureShield Pro capstock decking, recently introduced by AERT. “This new line will make it possible to reach even further into markets where capstock is becoming the preference,” says Brent Gwatney, senior v.p. of sales and marketing for MoistureShield. “We want to fulfill all homeowners’ decking preferences, whether it be with a natural wood-like composite or the benefits of a lower-maintenance cap.” The newest line of composite decking from Rhino Deck is called Armadillo Lite. The line is made from 100% postconsumer recycled material and has a uniquely fluted underside that makes it 20% lighter than comparable composite decking. A wrapped polyethylene coating protects against fading, weathering and staining. TAMKO Building Products has a new option for its EverGrain and Envision decking: grooved boards. The compression-molded boards are easier to install and feature the natural look of wood, with no repeat grain patterns and a dramatic deep grain. TruGrain decking from Westech Building Products represents a whole new category of composite decking. It is made of Resysta, which was developed in Germany and is made from rice husks, mineral oil, and salt. “This is the very first product that looks like exotic or tropical hardwood, is 100% recyclable, and is durable and long-lasting like foamed composites,” says general manager Renee Havrilla. “Water-resistant surfaces with the look of wood are our future.”
TAMKO’S Evergrain and Envision composite decking is now available in grooved deck boards that are easier to install. Building-Products.com
A host of new lighting and railing products allow consumers to take an ordinary outdoor living space from commonplace to extraordinary. “Builders and homeowners are looking for enhancements that maximize the style and enjoyment of their outdoor spaces,” says Chris Camfferman, senior product manager for Universal Forest Products, which produces the Deckorators line of deck accessories. Its Classic and Estate balusters are come in textured white and gray, plus weathered brown, to complement the leading deck and railing colors. Two new aluminum baluster styles, the Twist and Ellipse, offer a variety of style options. New solar post caps are crafted from pine and feature frosted glass and warm LED lights. Four styles can be chosen: Heritage, Archway and Hammered Metal, plus a caststone cover named Woodland Gray. “The right lighting can take any outdoor space from invisible to inviting,” says Ronald W. Kaplan, chairman, president and c.e.o. of Trex. “The right products allow homeowners to create customized outdoor living spaces that are compatible and consistent in both look and performance.” The company’s LED lighting products feature snap-in installation, use less energy than traditional lights, and are cool to the touch—making them safe for children and pets.
FEENEY LED RAIL LIGHT KIT
New LED rail light kits from Feeney function as an outdoor lighting accent and a visual aid for low-light areas. Two lengths are offerd (21” and 32”) with either a 35- or 60-watt power kit. The lights recess into the underside of top and bottom rails of the company’s DesignRail railing systems. Iluma LED lighting from i-lighting is designed to work with any form of outdoor railing system. Photocell technology senses ambient light and automatically turns lights on and off for both safety and security. Digger Specialties is offering a drink rail adapter kit that can support either a wood or composite deck board on top— providing a safe perch for beverages. The Westbury pre-drilled aluminum rail comes individually sleeved as a kit, with one rail and screws, for DIGGER DRINK RAIL easy installation. ADAPTER KIT
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MARGIN Builders By Carey Walley, AZEK/TimberTech
Help customers dream big with outdoor living design tips, tools EXPERTS ADVISE selling backyard projects as “outdoor rooms” instead of merely decks.
A
S SPRING ARRIVES after a rough winter in many regions of the country, homeowners are feverishly beginning to plan for their outdoor living spaces. As a focal point of warm weather entertainment, an outdoor living space can become a luxurious retreat, given the right design, materials and amenities. Knowing how to approach customers to get them involved in the design process can spur their imagination, allowing projects to expand and get more creative. This boosts margins for dealers and contractors and provides exciting design possibilities for homeowners that they might not have imagined. Here are some ideas for expanding the vision and bringing together the dealer, contractor and homeowner as a collaborative team.
Use Low Maintenance Materials at the Start
Using low-maintenance materials can help the homeowner think bigger and out of the box from the get-go. Take the hassle of maintenance and frequent repair out of the equation, and the design possibilities become limitless. “Using the newest low-maintenance deck and railing materials ensures the customer’s investment will pay off with an outdoor space that exceeds their wildest dreams,” says Steve Miller, v.p-sales, Holmes Lumber, Millersburg, OH, a division of Carter Lumber. Mel Westerman of Cape Cod Lumber, Abington, Ma., agrees, adding that the new capped composites offer an
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(Photo of capped composite decking by TimberTech)
extra layer of protection to resist staining, fading and scratching, while cellular PVC decking offers the broadest color choices with stain- and scratch-resistance. “Today’s durable products give customers more freedom to be creative and put some artistry into their backyard projects,” he said. “These decking options provide the perfect backdrop for elaborate outdoor kitchens and rooms that can redefine how the customer experiences outdoor living.”
Sell the Outdoor Room as an Experience
Find out early on how many family members there are and how they plan to use the deck on a daily basis. Then let them imagine bringing all of the comforts and luxuries of the indoors to their outdoor space. “Approaching customers with the outdoor room concept instead of just the plain deck or patio helps them to think big, bold and beautiful,” notes Miller. Jason Russell, Tacoma, Wa.-based president and owner of Dr. Decks, says he not only builds outdoor rooms, but wows customers with unique and individual features that surprise and delight them, like outdoor theaters, built-in bench sound systems, and electronic picnic tables that rise up at a touch of a button. “My goal is to get their imaginations going on ways to enhance their outdoor experiences,” he says. And, according to Russell, an important part of his artistically crafted decks is to use the best, most durable materials, such as Building-Products.com
composites and cellular PVC. “After a long winter, a beautiful deck is the customer’s ticket to grabbing every possible second of outdoor enjoyment and that does not include giving up weekends doing maintenance.”
Ramp Up the Style with Railings
Along with providing safety, railings and fancier infills can also influence the style of the final deck design. To enhance traditional railings, decorative in-fills, such as square or round metal balusters, offer a sleek stylish option. When there are breathtaking, scenic views beyond the deck, several options to unclutter the view include cable railing and glass panels. Sleek, stainless steel cable railing provides an improved view and serves as a contemporary design element with very little maintenance. For the ultimate view of lush scenery, there are kits to integrate glass panels into the railing that become nearly invisible.
that install flush into the deck boards, and stair riser lights for improved safety.
Complete the Vision
Seeing a small swatch chart or deck sample doesn’t really paint a picture of how that product or color is going to look on an entire deck. With online visualization tools, the collaboration team can experiment with different colors of decking and railing infill options. This helps cut through the mire of all the products and color choices out there. “I think online color visualizers are a great way for homeowners to better envision the complete package and they are a great selling tool,” says Russell. “It opens the door to every-
thing from outdoor kitchens to fire pits to lighting options.” He relies on advanced software as well as manufacturers’ online design tools, including TimberTech’s color visualizers and even an iPad app that makes collaboration easy. By presenting the outdoor space as a total experience limited only by the imagination, dealers and contractors can help customers dream big with time-tested composite or cellular PVC decking, outdoor kitchens, electronics, decorative railings and deck lighting for a total investment that will reward them for many years to come. – Carey Walley is v.p. of marketing for TimberTech and AZEK Building Products, divisions of CPG Building Products. Reach her via www.azek.com.
Amp Up the Lighting Options
To complete the outdoor space, deck lighting can extend the hours of enjoyment on the deck long after the sun goes down, as well as serve as a design element. According to the American Society of Landscape Architects’ 2014 Residential Landscape Architecture Trends Survey, 98.3% of respondents rated lighting as a desirable element of their deck. Lighting innovations include post cap lights that generate a warm glow around the deck’s railing, under-thehandrail lighting, subtle surface lights
Building-Products.com
OUTDOOR KITCHENS are the perfect project to build a deck sale around.
May 2014
(Photo by AZEK)
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COMPETITIVE Intelligence By Carla Waldemar
Contractors’ Nirvana
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out there has a word of advice for the man? Usually this column tells the story of a company that’s found a new niche, a money-saving gambit, a different way of doing business that’s keeping it afloat in these turbulent economic waters. Orv Johnson, general manager of Hendricks Farmers Lumber, has a problem that’s a little more unique: He’s way too busy. Orv is selling packages for eight to 12 new homes a year (plus, plus, plus). And he’s doing it in a town of— ready?—720 people. Nor does the town of Hendricks boast a giant industry—simply the hospital, a golf cart distributor, a pretty lake or two. Yet he turns away advertising reps, because why in the world would he want to lure more customers, he asks them. He can’t keep up with the ones he has. What is this—the magical kingdom of Oz? No, sir. Hendricks is a rural, farm-based community on the western border of Minnesota. Hike a mile, and you’re standing in South Dakota. Brookings, S.D., and Marshall, Mn.—the only sizeable spots on this stretch of the prairie—are 30 minutes away. Orv sells to them, too, but they’ve each got their own lumberyards. So do the tinier towns closer by— “but we’re friendly,” Orv says of his competitor-dealers doing business there. “I respect them. If someone’s in need of something, we even trade materials.” Orv was born and raised in Hendricks, but he’s not the ONDERING IF ANYONE
MINNESOTA LUMBERYARD’S seasoned staff is trained to hook homeowner customers up with the pro customers.
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owner of the company and never will be. Nobody is; well, actually, ownership is divided among 50 or so shareholders. Back in 1915 when the yard was founded, people bought shares at $50 each—400 of them—to raise the necessary $20,000 so the company could purchase four cars of lumber to open its doors and get the operation up and running. It’s been doing gangbusters ever since. Orv reports to a board of directors who, wisely, give him free rein. “I run the whole company,” he allows. Farmers are among his best customers—“a lot of agricultural business, livestock equipment. And the farm economy is really good,” Orv reports. “Lots of them are also building new houses.” So are vacationers who cherish the surrounding lakes, resulting in “a lot more d-i-y business in summer,” he reports: “remodeling, plus lawn and garden, plants, fertilizer.” They come to Hendricks Farmers Lumber because of word-of-mouth, “after talking to friends they trust,” he says, backed by the ease of one-stop shopping. Hendricks’ operation is unique in another key facet: not only one-stop shopping for building materials but also for the potential homeowners who’re doing the actual building. “We do a lot of generaling. We can be everything from A to Z for them. They can choose to deal only with me and not a lot of subs,” explains Orv, who then oversees the entire project as he hires and schedules and supervises for at least 75% of homeowner-wannabe clients, building houses that range in price from $150,000 to $400,000. However, he’s quick to add, “If homeowners just want only the materials, that’s okay, too—however they want to work it.” But most would just as soon turn it all over to the pros Orv hooks them up with—a function that is a lot more complicated that it sounds, says the man who should know. “The biggest thing is for me to get a feel for what a customer wants in his home and their personalities. Then I’ll find them a contractor they can get along with. People don’t realize how important that is, to have the right match; otherwise, is can be disastrous,” he well knows. Of course, those pros make mighty loyal customers, themselves. The reason is clear: “The biggest thing is, we get them work. They don’t even have to advertise—just rely on the people coming in the store. This year,” Orv says, “they’re already booked solid. We’ve got a good thing going….” It gets even better. The contractor is never out there on a Building-Products.com
TOOLS are among the heavily promoted products.
financial limb, looking at a bill for materials and waiting to be paid so he, in turn, can pay it. Instead, Hendricks bills everything directly to the end-user, the homeowner himself—which also cuts down on all those in-house “over 30 days” dunning notices. Hendricks also treats its pros (who account for 60% of its customer count) to the other perks you might expect: free delivery and events, such as the annual December DeWalt Tool promo (complete with eats and drink) and spring’s Sawdust Day customer-appreciation event, in which vendors participate. Those sales reps are also on hand to get staff (eight full-timers plus two part-time people) up to speed on new products Hendricks carries. In fact, Hendricks first upped its product line back in
Turning Good
1992, when it opened a hardware store in a property it purchased down the street. Then, a year ago, the company built a 4,000-sq. ft. addition to its main location and moved the hardware to this more-convenient venue. “It had kind of discouraged customers to be sent down the block,” he says. “It’s easier for them if we offer everything under one roof”—and that “everything” segues from decks to windows and doors, tools, siding and a whole lot more, suited to the “fine Victorian homes and picturesque estates” Hendricks showcases on its website. “Plus, the consolidation better utilizes our staff.” So, what about the big recession? “We haven’t noticed it,” he says in the understatement of the month. They didn’t have time to stew over it, being way too busy. Still are. And that creates its own dilemma—might it be time to expand? “We’ve thought about it,” Orv ruminates. “We could go out, look for new, young contractors and try to bring ’em in to handle the business. But what if things slow down? Then they wouldn’t have any work. So I guess we’ll continue as is,” he indicates. “If we tell people in December that we can’t start their new house until August—if we’re upfront about it—they’re usually patient; they’re usually willing to wait.” Carla Waldemar cwaldemar@comcast.net
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OLSEN On Sales By James Olsen
Becoming their number one supplier
T
number one supplier position with our accounts we must, above all, earn (and continue to maintain) their trust. We are not just talking to our customers. We are asking for their money. We are asking them to take risks based on what we tell them. Sure, they may know what they are buying, but will we ship it on time? Will we ship it at all? What do we do when the market moves against us? How do we handle problems? These are questions that are essential to the sales process, which have more to do with our values than our salesmanship. We have all known salespeople that are great at getting someone to say yes to them, but they don’t (always) back up (everything) they say. We all make mistakes, but there is a difference between mistakes and patterns. A certain kind of salesperson always “forgets” a necessary detail, or needs a price adjustment, or an extra week, day, hour. They put pressure on the customer and their own organization. Things get done, but seldom smoothly. The salesperson’s problems become their customer’s problems. These salespeople underperform vis-à-vis their talent because they have to rotate through accounts; they get the hustle orders, but they never get the trust orders. They are never anyone’s number one supplier. They have people who buy from them but few business friends or trusted business partners. Simple, but in the heat of battle, not always easy, to earn trust, we do what we say we are going to do. O ATTAIN THE
Consistent and Persistent
How can I earn a customer’s trust? Whether customers are buying from us or not our approach is the same. Consistent and persistent. Same day/time. After our first contact with our new customer, we follow up within a week and continue to follow up on a weekly or bimonthly basis, on the same day at the same time. We are consistent with our call schedule. We can call
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intermittently with specials—that is part of our sales arsenal—but aside from those calls we are like clockwork and the weather—you can count on us. We are consistent with our offerings. Just like advertising, our offerings to our customers should be consistent. Send them every Monday and Wednesday to one group of customers and Tuesdays and Thursdays to another. As with calls, we can send special offerings, but our normal offerings are consistent—you can count on us. We engage the whole account. We engage, learn the names of everyone we speak with at the account (yes, on the phone also). We become part of the fabric of their business. Gatekeepers and others who answer the phone often have great influence with the buyer. Be cheerful. Not ha-ha-funny-as-a-clown cheerful, but professionally positive. We are a positive, upbeat, professional part of our customer’s lives—you can count on us (to always be upbeat.) Make asking for the business part of the relationship. “I sure love Jack. He is consistent with his offerings. He is always upbeat. He does what he says he is going to do.” “And he sure wants to do business with me” must be added to this sentence. We must maintain a consistent, persistent attitude about doing business. We are not just consistent with the service part of the relationship; we are consistent and persistent sellers also. Full Disclosure Selling. Full disclosure selling is a series of questions that lead to an open, trusting way of doing business. If we know the answers to the full disclosure questions, we are selling the account as a partner, if not… something less. Where are you in your buy cycle? What do you currently have on the ground? What do you have on order? How much of that item do you use per month? What is your average cost? What is your buy-back (replenish) point? (How low do you let your inventory go before you buy? Many sellers find it difficult to get this information from their customers. These questions are trust-testers. These are reasonable business questions. Our customers’ answers will tell us where we are on the road to becoming their top supplier. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com
Big John’s Back in Colorado
Three years after economic conditions forced the closure of Big John’s Ace Hardware in Glenwood Springs, Co., owner John Lindsey is re-opening the store at a new location. “The economy just wouldn’t support it,” said Lindsey of the past closure. “That was one of the most difficult things I’ve ever had to do.” The new store opened April 29, at a location formerly occupied by a Subaru dealership. A 12,000-sq. ft. steel-frame building on the property was converted into a hardware store. “I like the fact that it’s an old garage; I think it really adds to the character of a hardware store,” said Lindsey of the new location, which is about 2,800 sq. ft. larger than the old store, minus the lumberyard. To maintain this character, the old garage-bay doors were retained during the remodel, but new energy-efficient heating and lighting systems were installed. The new store won’t offer lumber or building materials, but will carry full lines of hardware, fasteners, electrical, tools, plumbing, paint, lawn and garden, and an array of cleaning and houseware products. “It’s just nice for people to be able to park by the front door and walk into a store that’s well-stocked,” Lindsey said. “It’s just easier to shop and find what you need, and you can’t beat the customer service of a place like this.”
Northwest Hardwoods for Sale
Northwest Hardwoods, Tacoma, Wa., has been put on the sales block by its owner, private-equity firm American Industrial Partners. Goldman Sachs Group will handle the sale. AIP acquired the company from Weyerhaeuser in 2011, for between $100 and $150 million, as the housing market struggled. With the market improving, analysts expect Northwest Hardwoods could sell for as much as $700 million.
Disabled Attorney Sues Tahoe Area LBM Businesses
Tahoe City Lumber Co., Tahoe City, Ca.; Truckee-Tahoe Lumber Co., Truckee, Ca., and North Shore Ace Hardware, Kings Beach, Ca., were among dozens of area business recently targeted by a disabled lawyer, claiming they are violating the federal Americans with Disabilities Act. Since November, attorney Scott Johnson has sued at least 45 businessBuilding-Products.com
es. He typically sends companies a letter stating they are not complying with the federal law that requires a minimum level of access in all public places. His latest accusations concern improperly marked handicapped parking spaces, ramps that are too steep, and door handles that must be twisted, instead of pushed or pulled. He usually demands between $22,000 and $25,000 per suit.
Drive
Wood Deck Screws Deck-Drive™ DSV WOOD Screw: fast-starting deck screw for fastening preservative-treated wood decks
Officials File Wildfire Suit
Idaho officials filed suit against Potlatch Corp., Spokane, Wa., and related companies, alleging they share blame for a wildfire that killed a Forest Service firefighter and burned more than 300 acres in northern Idaho, according to the Lewiston Tribune. The state filed the lawsuit in district court, seeking an unspecified amount in monetary damages for the cost of fighting the fire. The suit charges that a logging crew started the fire using equipment that didn’t meet mandatory Forest Service standards. Firefighter Anne Veseth, 20, died Aug. 12, 2012, after being struck and killed by a falling tree while battling the Steep Corner Fire near Orofino, Id. The lawsuit also names Potlatch Land & Lumber, Potlatch Forest Holdings, Clearwater Paper Corp., and Kamiah, Id.-based logging contractor, DABCO Inc.
DEALER Briefs
Orchard Supply Hardware,
San Jose, Ca., declined comment on reports that it was behind a 37,000-sq. ft. hardware store with 11,300-sq. ft. garden center proposed for Napa, Ca. The site, currently part of a private high school, was originally going to be anchored by a 10-acre Lowe’s, but neighborhood concerns persuaded the chain to scale back its plan.
Habitat for Humanity relocated its Garden Grove, Ca., ReStore discount LBM outlet April 17 to Anaheim, Ca.
Not Your Ordinary Fastener • Up to 35% more screws driven per battery charge • Countersinks cleanly with under-head nibs • Withstands swelling and shrinkage with fast-growth lumber • Quik Guard ® coating provides added corrosion resistance
True Value Hardware presented its annual “Best Hardware Store in Town” awards to 13 regional dealers, including Ransom Brothers True Value, Ramona, Ca.; Foster True Value Hardware , Mariposa, Ca.; Billman’s True Value, Cut Bank, Mt., and Canon City True Value, Canon City, Co. May 2014
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Ganahl Expanding in LA, OC
Nine-unit Ganahl Lumber Co., Anaheim, Ca., is preparing to plant even deeper roots in Los Angeles, even as it also makes plans to expand in its longtime home base of Orange County. Ganahl has acquired 18 acres in Torrance, Ca., where it will build a new South Bay yard within the next two years, to be overseen by Tom Barclay, currently general manager in Los Alamitos, Ca. “We supply contractors, and we want to be where they are,” Barclay said. “Currently, half of what we sell goes into the L.A. market, yet we only have one store in Los Angeles. The South Bay store puts us closer to our existing customers.” He said L.A. customers, who for small orders typically stop by one of the big boxes “on about every corner,” have been asking for a lumberyard of their own. “Having a nicer, more conveniently located yard will get us some of the will-call business our Orange County locations enjoy,” said Barclay. Ganahl hopes to break ground by the end of the year and complete construction within 12 months. When construction begins, Barclay will move on to the project full-time and a successor will be named for him at Los Alamitos. The new location will hire a staff of approximately 100. The chain began seriously looking for additional sites in the L.A. area after the early success of its threeyear-old location in Pasadena, Ca. In addition, Ganahl has signed a long-term lease on 5.9 acres of land adjacent to its Costa Mesa, Ca., property, where it will build a new, larger replacement store. “We had considered remodeling (the existing store), but with the traffic we have here, when the opportunity came up, we decided to build a new one and, when it’s done, we’ll switch stores,” said general manager Brad Satterfield. With an extra acre to work work, the new location will provide significantly more covered storage, a 30% larger retail store, and a longer lease. Satterfield expects to obtain all necessary approvals in 10 to 12 months, with construction to take another year.
Interfor Proposes New Name
International Forest Products, Vancouver, B.C., has proposed forBuilding-Products.com
mally changing the company name to its trademarked nickname, Interfor Corp. “The change will provide a direct link to our traditional trade name and build on the successful rebranding efforts undertaken in recent years using the Interfor name and logo,” said president/c.e.o. Duncan Davies. “The new name will also be consistent with the formal names of our U.S. subsidiaries, which now account for more than 50% of our production.” The proposal was to be put before shareholders at the company’s annual general meeting May 6.
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SUPPLIER Briefs Rosboro, Springfield, Or., temporarily idled its plywood and veneer mills in Springfield, due to inadequate log supply. Lumber and laminate facilities remain operational. Vancouver Specialty Cedar Products, Surrey, B.C., has acquired the land, buildings and machinery of
Pac-Deck, Maple Ridge, B.C., which will operate under the name Valley Kiln & Pattern. Weston Forest Products , Mississauga, Ont., is now distributing redwood from The California Redwood Co., Eureka, Ca., across central and eastern Canada. Arch Wood Protection moved
to new offices in Atlanta, Ga.
MoistureShield now offers deck
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Weyerhaeuser , Federal Way,
• Wings on shaft counter-bore hard materials and allow head to countersink cleanly
builders a $1 rebate per deck board for purchases through June 30.
Wa., launched a 15-part video series demonstrating installation techniques for Trus Joist floor and roof framing.
Fiberon has signed as a goldlevel sponsor of a new online video series on NextGenHomeTV, featuring Ty Pennington.
• Self-drilling, prevents wood from splitting
• Compact head for a low-profile installation and available color matched to Ipê
TSF Systems, Sacramento, Ca., has sold its Trakloc steel framing system to ClarkDietrich Building Systems, West Chester, Oh., making it the worldwide manufacturer of the products. Nyloboard re-launched its website at www.nyloboard.com. May 2014
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Drive Stainless-Steel Deck Screws
Deck-Drive™ DWP WOOD SS SCREW: resilient deck screw for fastening wood decks in coastal and high-exposure areas
LBM EXTRUDER Skyreach L&S is putting the final touches on a new U.S. distribution and manufacturing facility in Rancho Cucamonga, Ca.
Skyreach Moving to Bigger Western Base Skyreach L&S Extrusions Corp. is preparing to move its U.S. headquarters from Orange, Ca., to a larger, 92,000-sq. ft. warehousing, fabrication and distribution facility in Rancho Cucamonga, Ca. The move will allow Skyreach to meet growing demand for its window and patio door systems and to develop new building products, such as fencing, fiber casement siding and boards, moulding, trim and non-fenestration custom profiles. “We’re in a position to introduce and supply products that have been specifically designed to meet the habits, tastes and requirements of the western USA market,” said general manager Gavin Taylor. “We’ll continue to build on a strong foundation and expand our efforts within the fabrica-
tor and window and door dealer channel across the West.” Skyreach also operates manufacturing operations in Chicago, Il., and Vaughan, Ont., home of its Canadian headquarters.
Koppers Buying Osmose
Koppers, Pittsburgh, Pa., has agreed to acquire the wood preservation and railroad services divisions of Osmose Holdings for $460 million. Griffin, Ga.-based Osmose Wood Preserving provides such preservatives as MicroPro micronized CA, Nature-Wood ACQ/CA, Advance Guard and Hi-Bor borates, and FirePRO FRTW. It expects to “continue to operate as it has with very little visible change to customers and markets.”
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Remodeling to Ease Later in Year Following Strong Start
Solid growth is expected in the home remodeling market this year, but momentum should begin to moderate in the fourth quarter, according to the latest Leading Indicator of Remodeling Activity from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Sluggishness in the housing market, and specifically in home sales, may result in a deceleration of home improvement spending from doubledigit annual growth through the third quarter to a year-over-year gain in the high single digits by the end of the year. “The housing recovery has at least temporarily lost some of its momentum,” said Eric S. Belsky, managing director of the Joint Center. “As a result, remodeling spending is expected to follow suit and see slower growth beginning later this year.” “Home improvement spending has already recovered a significant share of its losses from the downturn,” added Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “As spending moves into the next phase, we expect to see recent double-digit growth tail off to its longer-term average in the mid-singledigit range.”
LP, Ainsworth Extend Deal
As the companies continue to work with antitrust agencies on both sides of the border, Louisiana-Pacific Corp., Nashville, Tn., and Ainsworth Lumber Co., Vancouver, B.C., agreed to extend the outside date for completion of the proposed acquisition by LP of all outstanding common shares of Ainsworth. The extension, from April 18 to June 2, results from continued discussions with and reviews by the Canadian Competition Bureau and the Antitrust Division of the U.S. Department of Justice. The deal allows either company to further extend the outside date for another 45 days, if required to obtain certain regulatory approvals. Closure of the sale remains subject to various conditions, including the expiration or termination of the waiting period under the HSR Act and the receipt of other regulatory approvals and clearances including under the Canadian Competition Act.
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Building-Products.com
Distributors Predict Warmer Weather Will Rejuvenate Sales
Despite the negative weather impact on first quarter sales growth, building material distributors remain optimistic that recovery is nigh, according to the North American Building Material Distribution Association quarterly Executive Trends Index. Weather has been the largest driver to the slower sales growth for distributors, with 36% who experienced a five point or greater sales decline in January due to weather. However, distributors see opportunity to push through cost increases and expect profit growth to remain strong, up 8% in 2014 vs. 9% growth in 2013. Manufacturers also have high hopes for 2014, expecting sales to increase 11% for the year. About 23% of producers have increased their full-year 2014 forecasts over the last 90 days. In addition, 50% of manufacturers forecast an increase in headcount over the next 90 days and nearly 80% plan to add distributors during 2014.
$1 Million to Promote Wood Use
The U.S. Secretary of Agriculture, Tom Vilsack, announced a $1 million program that will provide training for architects, engineers and builders related to the use of advanced wood materials in U.S. buildings. The new pro-
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gram will be implemented by the U.S. Department of Agriculture, in partnership with the Wood Products Council’s WoodWorks initiative. The training supports The President’s Climate Action Plan goal of preserving the role of forests in mitigating climate change and the objective of the 2014 Farm Bill to create rural jobs. “The market for wood and other forest products currently supports more than one million direct jobs, many in rural America,” said Jennifer Cover, executive director of WoodWorks. “As advanced wood products allow the use of wood in a greater variety of buildings—including wood high rises—we can increase the role of forests in mitigating climate change, while strengthening rural economies.” Using wood from sustainably managed forests helps keep carbon out of the atmosphere because wood products require less fossil fuel to manufacture than other major building materials. “We appreciate Mr. Vilsack’s support of the WoodWorks program,” said Christopher McIver, chair of the Wood Products Council board and vice president of lumber, sales and corporate development for West Fraser, Vancouver, B.C. “WoodWorks has the unique role of working closely with design and construction professionals to provide education and project support related to the use of wood in buildings.”
Building-Products.com
MOVERS & Shakers Jim Enright has been promoted to president and c.e.o. of Pacific Woodtech Corp., Burlington, Wa., succeeding Dave DeWitte, who is now chairman of the board. John Martinez is new to sales at Thunderbolt Wood Treating, Riverbank, Ca. Wendy Gonzales, ex-Direct Lumber, has joined Trimco Millwork, Denver, Co., as territory sales rep for northern Colorado, Wyoming and Nebraska. Julie Castor, ex-Huttig Building Products, has joined the sales team at Boise Cascade Building Material Distribution, Lathrop Ca., managing the AZEK and TimberTech decking lines, as well as fasteners. Chris Bailey, ex-Spokane Forest Products, is new to inside sales at Weyerhaeuser’s Boise, Id., distribution center. Bryan Ashbaugh, ex-Street of Dreams, is now heading outside sales and marketing throughout the Puget Sound region for Matheus Lumber Co., Woodinville, Wa.
Orville Shockey, ex-SierraPine, has been appointed mgr. of particleboard operations for Collins, Portland, Or. Devin Stockfish, corporate secretary, Weyerhaeuser Co., Federal Way, Wa., has added the titles of senior v.p. and general counsel, succeeding Sandy McDade, who will retire in July. Kristen Sawin has been named v.p.-government relations, environment, health & safety. Sara Kendall, v.p.-corporate affairs & sustainability, has retired. Denise Merle, senior v.p.-human resources, will also oversee investor relations after Kathy McAuley, v.p.-investor relations, retires in August. Elizabeth “Beth” Baum is now director, investor relations. Doug Williams has been promoted to general mgr. of ProBuild, Aspen, Co. Dan Sutton, plywood sales, retired April 10 after 38 years with Roseburg Forest Products, Roseburg, Or. Kevin Murray joined the plywood sales staff.
Steve Carbary has joined Screw Products Inc., Gig Harbor, Wa., as warehouse mgr. Dan Weixelman, ex-Weyerhaeuser, is new to outside sales in western Washington and Oregon for Disdero Lumber, Clackamas, Or. Dan Dieter is now territory mgr. for eastern Washington and northern Idaho with PrimeSource Buliding Products, Spokane, Wa. Doug McIalwain has rejoined Canyon Creek Cabinet Co., Monroe, Wa., to head its newly remodeled store and showroom in Spokane, Wa. Shaina Sullivan, ex-Portland Metro Home Builders Association, has been named marketing director for the Green Building Initiative, Portland, Or. Thomas J. White is the new chief engineer and Andrew “Andy” Rocker, key account mgr. Mike Molinar has been appointed v.p./corporate controller for Orchard Supply Hardware, San Jose, Ca. Paul Casseri, ex-Larson Mfg., is now product mgr. for the residential shingle and underlayment divisions of Atlas Roofing, Atlanta, Ga.
Signing Off.
After 24 years of working together with you in the building industry, the time has now come to say goodbye.
shelves and continue to use them!
We from the Walther family had a great run during 24 years. It was fun, and we hope it was for you, too. Never ever did we imagine that we would be so successful. This was only possible because you took a chance on our products.
I hope that we will not become strangers. If you can, drop a line once in a while!
Our success shows that with a team effort—you our customers, our colleagues at GRK Fasteners, and we, the Walthers— change and growth can be made possible. Please keep GRK products on your
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Thank you, America, and thank you, Canada, for giving us a fair chance.
God Speed to all of you. Yours truly, Uli Walther
New email: ulrich_walther@yahoo.com Phone: 1-807-632-1251 Web: www.grkfasteners.com
Building-Products.com
Scott Savoian has been named corporate controller for Timber Products Co., Springfield, Or. Matthew Roscoe, ex-Longview Timber, is now lands mgr. for Chilton Logging, Woodland, Wa. Daniel Vance has joined Seneca Sawmill Co., Eugene, Or., as IT mgr. Rich Lynch has been promoted to v.p. of marketing for Do it Best Corp., Fort Wayne, In. Robert Staudte has joined Fiberon, New London, N.C., as European market mgr., based in Germany. Mark Hayes, business development mgr., Northwest Hardwoods, Tacoma, Wa., was appointed to the Kitchen Cabinet Manufacturers Association board. Shanda Lear is now staffing the lighting department at MungusFungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.
APP Watch
App: WALL-TO-WALL SOLUTIONS Produced by: CertainTeed Price: Free Platforms: iPad Builders now have a new mobile, interactive tool to help guide homeowners to the right wallboard product for specific areas of the home. The new app features product information, literature and videos on such gypsum board lines as VOCabsorbing AirRenew IAQ, noisereducing Silent FX, moisture- and mold-resistant M2Tech, and heavy duty AirRenew Extreme. “Since most people spend about 90% of their time indoors, the quality of that environment is extremely important,” says CertainTeed’s Angie Day. “With a competitive residential construction market, we wanted to provide builders with meaningful, value-add features to achieve the best indoor environment possible.” Download from iTunes App Store Building-Products.com
May 2014
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Special Focus North American Wholesale Lumber Association
Traders Market returns to Chicago
F
OLLOWING AN IMPRESSIVE show last year in Las Vegas, the NAWLA Traders Market returns to Chicago for 2014. The premier event will be held Nov. 12-14 at the newly renovated Hyatt Regency Chicago, a familiar venue for regular attendees. Since 1996, the Traders Market has held a unique position among lumber and building material trade shows, as it is the only one that is focused almost exclusively on the lumber supply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers. “The NAWLA Traders Market is the must-attend event in the forest
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products industry. It’s the one time and place where buyers and sellers of all types of wood and related building products can get together for two days and ‘talk shop’ face-to-face,” said Jim McGinnis, Traders Market chair. This focus on supply chain partners has fostered an unrivaled atmosphere for networking. In today’s global marketplace, the Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million-dollar deals are still made with a handshake, that personal networking is invaluable. NAWLA chairman Rick Ekstein, president of Weston Forest Products, said that the Traders Market truly provides value to his company, and that
May 2014
his “purchasing team can accomplish in two days, what it would take weeks to accomplish traveling on the road.” Last year, the show hosted 246 exhibiting companies and 1,435 attendees—its highest attendance since 2008. The attendee profile continues to be near evenly split between wholesalers and manufacturers. The Traders Market Committee is adding a few new wrinkles to the 2014 show, but is keeping the essence of the floor experience the same as in past years, said McGinnis. “We’re expecting 1,500 or so attendees, and it promises to again be the one event of this type that just can’t be missed.” Registration is now open. Visit www.nawlatradersmarket.com.
Building-Products.com
Special Focus North American Wholesale Lumber Association
False springs By Ken Tennefoss, Crow’s/RISI
“T
WO MAIN REASONS markets move up: a lack of supply or the perception there is a lack of supply.” When I was a boy, my mother planted a garden every year. Every year she would patiently wait until the days grew warmer, the trees began to bud, and the new grasses began to sprout before she would till the soil and plant her flowers and vegetables. Some years in late February the days would get warmer, some of the trees would begin to bud, and the feeling of spring would be in the air. During these times, my mother would wait to plant her garden, and sure enough, in a week or so another heavy frost would come and nip all the early buds from the trees. My mother would call these events a “false spring.” To stay with my mother’s garden metaphor, the economic winter we have been in has been a long one, and we are ready for the business season
to improve. Like my mother, we are anxious to plant new seeds of commerce and begin to grow our business. We must be careful not to let our zeal overcome our caution, lest we get tricked by a false spring. In case you’re not sure what to look for, we have had a couple in the past few years. Here’s what they look like.
2010
During the last few months of 2009, lumber and panel prices began to creep higher. Each week’s market reports showed modest increases in prices. A few announcements of curtailments in production, along with a little better demand than expected, brought some buyers off the fence. By the beginning of the new year, framing lumber prices had moved up $20$25 and panel prices were $25-$30 better. January housing starts came out at a seasonally adjusted annual rate (SAAR) of 614,000, the highest
number since November of 2008. February’s numbers were slightly lower than January’s, but March housing starts came in at 636,000 SAAR and April’s numbers made a jump to 687,000 SAAR. Even though it was still early spring, and many parts of the country were still in the grip of winter weather, the market reacted with what was sometimes described as a “gold rush mentality,” pushing mill order files out many weeks and prices to near all time record highs. Framing lumber prices climbed $125-$150 higher in five months. OSB prices went from the mid $150s to the low $400s. In May, housing starts dropped by 100,000 to 583,000 SAAR, and June came off another 47,000 to 536,000 SAAR. Traders dumped their long positions, building contractors canceled job orders, lumber and panel markets made a steep decline. By the first week of June, lumber prices had dropped $75-$100 and OSB prices were $200-$225 lower. Prices continued to drop through the month of August before showing signs of recovery and never got close to the levels seen in the spring.
2011 and 2012
Spring 2011 saw almost a reversal of events from 2010. Housing starts fluctuated between the mid-550s to the low 600s, while lumber and especially panel prices began a decline that lasted well into the third quarter. Many said the market was “overly
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Heavy winter weather has closed job sites and stifled demand, as well as slowed transportation to a crawl in some regions. Most buyers and sellers interviewed are optimistic about the future and feel the year will be a good one. However, buyers time and time again site the lessons learned in 2010 and 2013 as reasons for “guarded optimism.” Perhaps this spring will not be a false start and will be the beginning of a prosperous year for all. cautious” after the events of spring 2010. Spring 2012 saw markets acting much the same as 2011, trading in narrower ranges, much more like traditional trading patterns. This continued through the third quarter before prices began to improve.
December, and have been over 900,000 for January and February.
– Ken Tennefoss is executive editor of RISI’s Crow’s Weekly Market Report. Reach him at ktennefoss@risi.com.
2013
In September of 2012, housing starts came out at 854,000 SAAR. The last time starts were above 800,000 was in September of 2008. Market prices were in a general decline and did not show much reaction to the housing news. When the October starts of 864,000 SAAR came out, the market began to take notice. By the end of 2012, lumber and panel prices had each increased by $100. They continued to increase in 2013. Housing starts numbers continued to improve and finally broke the one million mark in March of 2013, the first time since June of 2008 that starts had been over one million units. Prices were once again at or near record levels, with SPF 2x4 #2&Btr trading at $485 and 7/16” OSB selling for $435 FOB mill. When the April housing figures of 852,000 units SAAR were released, the market went into a decline that lasted for 60 days. During that time, market prices for framing lumber and OSB lost around 25% of their value. Since July of 2013, framing lumber prices had slowly made gains but had not been able to fully climb to the levels of the spring of 2013. OSB prices have had an even tougher time recovering lost ground and have remained in the low to mid-$200s. Which brings us to this spring. Since the first of the year, prices have been slowly eroding, even though housing starts ended last year at over one million for November and Building-Products.com
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Special Focus North American Wholesale Lumber Association
To extend or not to extend?
Effectively limiting risk and exposure when setting credit limits T HE EXTENSION of credit, so basic to any business enterprise, pivots on trust and risk. The biggest challenge a credit professional faces is deciding whether to extend credit to a client, and how to determine the proper amount of risk or exposure to accept.
Establishing credit limits is not an exact science. While some seasoned credit professionals develop a ‘gut feeling,’ others take an analytical approach to reducing risk. In either case, understanding risk tolerance and potential buyer performance patterns are essential. This article looks at what factors a company must consider when extending credit, what is involved in the credit review process, and how to answer the standard question: “Should I extend credit—and if so, how much?” Extending credit to customers can increase sales, improve customer satisfaction, and help build long-term customer relationships. Nevertheless, the risk of loss is
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always present when extending credit, so a business must establish a formal credit policy and set credit limits. Credit limits not only improve a company’s ability to collect debt, but help it minimize losses on defaulting customers.
Risk Tolerance & Exposure
A credit policy should determine not only how and when to sell on credit and the terms, but also define when terms should be revisited, and when necessary, the collections process. Several factors influence the amount of exposure a business is willing to take. Factors include cash flow, profit margin, and the ability to collect unpaid debt. Cash flow is critical. When offering credit, the seller has not only paid the cost of providing the product or related service but will receive no cash from the sale to replenish operating capital until the debt is paid. When setting the length of terms, the seller needs to take into account if it has enough cash flow to cover operations until payment is received. Additionally, a company’s profit margin is a major consideration when determining how much exposure is relatively safe. The lower the profit margin, the more conservative the credit policy. Tightening credit, however, may have a negative impact on sales growth unless the company’s product or service is in high demand. In a competitive market, a looser policy may be needed to maintain customers even if profit margins are low. Poor economic conditions also can dampen a company’s appetite for risk, but not always. Kelly Bates, global credit director for a U.S.-based supplier, notes their company didn’t change its credit policy during the recent economic downtown. “Sometimes we get pushback [from buyers] that other companies extend longer terms,” she concedes, “but our Building-Products.com
practices are consistent. Whether it is a good market or a poor market, we stick to the same procedures.” Bates explains that this still requires knowing their customers, monitoring pay, paying close attention to Blue Book Services credit sheets and ratings, and evaluating any changes that may occur on a month-to-month basis.
stability and track record are crucial. Large or small, a company must have the ability and cash flow to sustain itself. As most credit professionals know, insolvency can strike firms of any size and have a devastating ripple effect. There are a number of sources to obtain information on a customer’s creditworthiness, such as credit agency reports and bank references. Credit agencies can provide informa-
Know Your Customer
Knowing your customer’s financial
Industry Pay Trends Every month, Blue Book Services collects accounts receivable data from lumber suppliers throughout the U.S. and Canada. Confidentially maintained, this information is compiled, averaged and analyzed to help Blue Book members make safe and informed credit decisions. The following chart confirms that industry pay trends have been relatively stable for the past five quarters. Quarter Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013
Total A/R Reported $1.83 billion $2.01 billion $2.58 billion $2.28 billion $2.24 billion
% Current % Past Due 83% 84% 85% 83% 83%
17% 16% 15% 17% 17%
Average Credit Per Customer $48,958 $54,699 $58,232 $57,406 $52,743
– Source: Blue Book Services database
tion on a customer’s payment history, banking relationships, and financial performance. Bates relies heavily on Blue Book Services for timely information on pay performance and emerging trends. “We check a customer’s background. We look at how long a company has been in business and dive into their financials,” she explains. “If what we need is not available, we will go with references, but we take them with a grain of salt.” She notes, however, that banks are a good source for references. When calling a customer’s bank for a credit rating, standard questions include how long the account has been open, the average balance, and whether the bank has credit experience with the account. Bates says knowing the customer and understanding its reputation in the market are critical to making sound credit decisions. “We go back to the salesperson to find out what they know about the customer. It gives us a better level of comfort for the risk (we may undertake).” In some cases, it is advantageous to look at a customer’s operating plan. “We request a forecast of how much they intend to purchase, and we keep the amount of credit in line with the forecast and past history,” Bates says. Company policy is to set the credit line “to actual need as long as the financials support it. If there’s a spike in their credit line, it’s a trigger to us to go back to the salesperson (to find out why).” If a customer is asking for more credit because the company doesn’t have the required cash, Bates says, such a spike “forces us to investigate to determine what the risk is.” Not every customer has the financial stability to receive credit. “Most of the time we extend cash in advance terms if they don’t meet the criteria,” Bates says.
Equal Credit Opportunity Act
Any business checking the creditworthiness of its customers needs to be in compliance with the Equal Credit Opportunity Act. The Equal Credit Opportunity Act (ECOA) of 1974 applies to all creditors before, during, and after extending credit. Congress passed the Act in response to the difficulty minorities, women, and the elderly had in obtaining credit and requires that creditors “make
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credit equally available to all creditworthy customers” without discrimination. The Act also includes rules on certain notifications and record retention. Applications must be worded neutrally, so as not to ask for any prohibited information. Additionally, applicants must receive a credit decision within 30 days. If credit is denied, terms have been changed unfavorably, or an increase in a line of credit had been refused, the creditor must notify the applicant, and he or she has 60 days to request, in writing, the reason for the “adverse action.” The creditor must respond to the applicant within 30 days if such a request is made. Denied application records for applicants with gross revenues of $1 million or less must be retained for 12 months after notification, for 60 days after notification for applicants with more than $1 million in gross revenues—or 12 months if so requested by the applicant. In addition to actual damages, court costs, and complainant attorney fees, violators can face punitive damages of up to $10,000 in individual lawsuits and up to the lesser of $500,000 or 1% of the creditor’s net worth in class-action suits.
Conclusion
The decision to extend credit and the terms of credit are different for every business. Company officials should set policies that reflect their own level of comfort with risk and should perform due diligence on cus-
Building-Products.com
tomers’ financial stability, reputation, operations and payment performance history. Bates offers this advice when extending credit: “Know your customer, keep [the sales department] in the conversation when you are deciding to give credit, and stick to the
facts. Make a fact-based decision.” – This article was provided by Blue Book Services, established in 1901, a comprehensive online directory and credit information resource for the lumber industry that has been actively involved with NAWLA since 2009. Learn more at www.lumberbluebook.com.
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Special Focus North American Wholesale Lumber Association
Transcending the transactional sale By Dennis Connelly
A
FTER ALL THE advice you’ve been getting from sales professionals, managers, trainers and sales columnists over all these years, why is the transactional sale still so common? Why don’t we swim against the tide and find a better way? Perhaps it’s because the transactional sale is easy. Someone calls, you quote a price, you get the order… or not. Move on to the next call. What’s wrong with that? In some cases, there’s nothing wrong with it. In other cases, there’s a lot. Let’s break it down. Transactional sales are easy and uncomplicated. That’s the irony. We love them. And that’s why your salespeople gravitate to selling transactionally even when they know there’s a better way, and even when they know that applying a sales process and better selling methodologies might give them better results. In an ideal world, we have the best product in a category, with the best value that no one else has, and everyone in the market knows we have it. Just sit back and let the phones ring, right? Imagine being an iPhone salesperson. I mean no disrespect to the helpful folks at the Apple store, but if there were ever a quintessential example of an order-taker, that would be it. And if your products were like that, you wouldn’t need salespeople at your company either. Imagine if your people drove around with a hand-held order machine like those guys have. “And would you like your receipt
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emailed to you, Mr. Campbell?” But your products are not like that. There is always an alternative—to your product, to your company, to your category, or even to your people (more on that in a minute). And, thankfully, this is so. It’s what makes the game fun. It gives your people a
May 2014
chance to shine, to build value, to solve business problems, and to differentiate not only their products but themselves. You sell a broad mix of products. Some are special. They might have a longer sales cycle as you try to get the product sold as a stock item, or at
Building-Products.com
least regularly purchased as a tried and true product. Perhaps you’re hoping a builder always uses a particular type of decking or that a dealer stocks a certain set of railings or trim boards. We’ve talked a lot in other articles about how to sell those items. But what about the products that sell more like a commodity? What about the products for which customers call and say, “I need another 300 pieces.” What about the products that seem like price is the only thing that matters? That’s our domain today. Let’s first divide the transactional sale into three categories so we can understand what to do in each case. First we have the customer calling who always buys this product from you. Then we have the customer who sometimes buys it from you. And, finally, we have the customer who calls and never buys from you. Case 1: In this first case, where they always buy from you, that’s as close as you’re going to get to selling iPhones. Be happy, but don’t be complacent. The key to it working long term is maintaining a great relationship with that customer. They’re not shopping you, therefore they like you. All of the other qualifications are
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there, by definition. So the only thing you can mess up is the relationship. Put your best account managers on it and cherish them. Case 2: In the second case, where they sometimes buy from you, you’re locked in purchasing department purgatory. When I talk to companies about this group, I’m almost always told the same thing, “They only care about price.” I remember one such dealer many years ago who was purchasing primed wooden trimboards and everyone in distribution “knew” that price was all that mattered to him. Then one day, someone sold him
PVC trim boards at three times the price. What happened? Different value proposition? Really? Are all primed wooden trimboards the same? This was a missed opportunity. The key, in this case, is not accepting that the sale is transactional at all. They sometimes buy from you and sometimes someone else. Why? Is price all that matters? What is the product being used for? Are there alternatives? Have they ever had a problem? And what other problems did that problem cause? Does timing matter? Does having it in stock matter? What if it costs more to keep
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enough in stock to never run out? Who else is affected by this purchase? How often do they need it? How many more times this month? How else could we structure this to get more of their business? Why is this important? Who else cares? Should they be in the conversation? Find out who’s wearing the decision and get to that person. The best salespeople can do this. Then, have a business conversation. If all you do is quote the price, then you’re the same as the other guy but with a different phone voice. When the product seems the same, and the service seems the same, and the only thing that changes is the day of the week, then you need to be the difference. Slow down the call, find out what other factors are on the table, and talk about their business. Be the only one who really gets it. When your people can do that, they are the difference. Case 3: In the third case, where the prospect frequently asks for a quote, but never (or rarely) gives you the business, we must take a different approach. It might sound something like this: Salesperson: “You call a lot asking for a quote, and you’re real nice.
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You say we’re competitive, and you say good things about us, but we never get the business, why is that?” Prospect: “It’s just business.” Salesperson: “Is it fair to say you’re in business to make money?” Prospect: “Aren’t we all?” Salesperson: “And if you never get the business, how can you make money, and how can you be in business?” Prospect: “Look, I get a lot of quotes from people who don’t get the business, and I give a lot of quotes for my company and don’t get the business. That’s what it means to be in business.” Salesperson: “That doesn’t work for me. With all this price quoting, I’m spending a lot of time and not getting paid. Tell me what it’s going to take to do business with you. If it makes sense, I’ll give you another quote.” Often, what’s happening in this third case is that you are being used to keep someone else’s prices low. The prospect is behaving as if business is devoid of relationship, both with respect to you and to the incumbent. And they will keep behaving that way until someone shows them a reason to
May 2014
change their thinking. Why not be the first one to do that? You have nothing to lose. They’re not your customer, but they called you. Seize the moment. In summary, we tend to like transactional sales because they are easy. But we are leaving much on the table. We’re either vulnerable to the competition, we’re stuck in a price war and a race to the bottom that no one can win, or we’re getting walked on while letting good potential business slip away. Can your salespeople cope with these issues and reverse the transactional tendency? Can they change the nature of the conversation and reverse the downward pressure on margins? Can they sell more consultatively and become the primary differentiator? Getting the answers to these questions could be the beginning of transcending the transactional sale and having your best year ever. – Dennis Connelly is a sales development consultant at Kurlan & Associates, author of the blog series livingsalesexcellence.com, and a frequent industry speaker. Reach him at dconnelly@kurlanassociates.com.
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Special Focus North American Wholesale Lumber Association
The role of wood products in forest carbon accounting By Suzanne Hearn, Forest2Market
T
over forest carbon accounting reminds me of the H.L. Mencken quote, “For every complex problem there is an answer that is clear, simple and wrong.” The clear and simple answers for complex questions, such as when to start the carbon accounting clock, for example, are oftentimes fraught with error. How should we go about accounting for the many ways a tree continues to sequester carbon after a harvest? We know forest carbon accounting systems must account for:
• Forest inputs such as fertilizer and herbicides • Moisture and material loss • Electricity used to transform raw wood material to wood pellets • Fuel (diesel) used to harvest trees and transport materials from the forest to the boiler Methods to interpret other variables that considerably affect forest carbon—forest composition, geography and past land use, for instance—are less clear. Environmental
Table 1
HE ONGOING CONTROVERSY
– Smith, James E.; Heath, Linda S.; Skog, Kenneth E., & Birdsey, Richard A. (2006). Methods for Calculating Forest Ecosystem and Harvested Carbon with Standard Estimates for Forest Types of the United States.
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stressors such as hurricanes or pest outbreaks and economic pressures like conversion to crop land and urbanization contribute to imbalanced carbon accounting ledgers. Add to this the difficulties of applying the same set of measurement criteria to different wood markets, and we have a complex problem indeed.
Carbon Sequestration in Long-Lived Wood Products
Table 3
Table 2
One particular question that deserves an answer is how forest carbon accounting schemes account for the carbon sequestered in end-use
products. Changes in forest carbon stocks occur whenever forests are harvested, yet these changes do not mean all of the carbon sequestered by the harvested trees is immediately released into the atmosphere. In fact, it is quite the opposite. Hundreds of products made from trees—lumber, OSB, plywood, paper, packaging and furniture, to name a few—continue to sequester carbon for decades. Table 1 (on previous page) displays the percentage of primary wood products that remain in an end use product after a specified number of years following harvest and production.
For example, column two indicates 57.9% of softwood lumber remains in an end-use product like lumber or furniture 25 years after the initial harvest. This means that as of today 57.9% of the softwood lumber manufactured 25 years ago remains “in service,” sequestering carbon in the studs, joists and floors of our homes. After 100 years, nearly a quarter (23.4%) of softwood lumber harvested a century earlier remains in products that sequester carbon. When considered in terms of a typical 25-year sawtimber rotation, the ongoing sequestration benefits of a harvest are staggering. Forests in the U.S. South produced 47 million tons of southern yellow pine lumber in 2012. Converting this to tonnes and taking moisture content and carbon percentage into account translates into carbon sequestration, expressed as its CO2 equivalent, of 59,190,390 tonnes. By 2038, when 57.9% of lumber from the original harvest remains in service in products, 34,271,236 tonnes remain sequestered (Table 2). Now let us consider the CO2 emissions from wood pellets produced from the same harvest (Table 3). If we estimate 6,000,000 tonnes of pellets
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atmosphere from those pellets. When we subtract the 9,122,571 tonnes of CO2 emitted from those pel-
lets from the 59,190,390 tonnes of CO 2 sequestered in the lumber, we have a net gain of 50,067,819 tonnes
Table 4
were produced from sawtimber harvest byproducts, we find 9,122,571 tonnes of CO 2 are released to the
– Assumes 47,000,000 green short tons of southern yellow pine harvest goes toward lumber production.
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products, such as OSB or paper.
Carbon Accounting for Wood Pellets
Just as it is illogical to believe 100% of the carbon sequestered by a harvested tree is immediately released to the atmosphere, it is irrational to include the carbon from a whole tree when accounting for carbon in the wood pellets used to generate electricity. Pellets are produced from harvest byproducts such as the unmerchantable tops and limbs of whole trees. A good portion of the carbon stored by those trees remains sequestered in lumber and other forest products. Likewise, carbon accounting for wood pellets sourced from whole pulpwood trees (the come-along products of a sawtimber harvest) must count only the carbon sequestered by
those small trees that go into the pellet, not the large sawtimber-sized trees used for lumber and other longlived products. An accurate forest carbon accounting system must consider both forest carbon and carbon that remains in harvested wood products (Table 5). A failure to account for carbon stores in long-lived wood products considerably inflates emissions estimates in the harvest year. We simply cannot declare wood-to-energy is a problem until we account for and explore the many challenges inherent in complex systems of carbon accounting. – Suzanne Hearn is v.p.-sales & marketing for Forest2Market. Reach her at suzanne,hearn@forest2market.com. Calculations in this piece are based on logic presented in Dovetail Partners Carbon in Wood Products – The Basics.
Table 5
CO2 sequestered (column 2, Table 1). To consider these benefits across time, the amount of lumber taken in an initial harvest is multiplied by the percentage of lumber that remains in an end-use product in the years following that harvest. Immediately after a harvest, 100% of the lumber produced sequesters carbon. Within one year, 3% of that lumber is no longer in use. As a result, only 97% of the lumber produced in the initial harvest remains in use to sequester carbon in year two. Table 4 (previous page) shows these cumulative affects at the time of harvest and one, five, 10, 15, 20 and 25 years into the future. Keep in mind, this sequestration benefit is from the softwood lumber produced from just one harvest. These numbers do not account for the carbon that remains sequestered in other wood
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IN Memoriam Dean Roland Bramon, 97, former operator of Carl Diebold Lumber, Troutdale, Or., died March 17. He served in the 95th and 99th infantry divisions during World War II, fighting in the Battle of the Bulge and the invasion of Nazi Germany. After his discharge, he joined his father-in-law’s wholesale lumber business, running the new stud mill it opened in 1946. In 1952, he partnered with Diebold to buy a redwood mill in Smith River, Ca. In 1959, they added a distribution yard in Wood Village, Or. He retired and turned the business over to his son-in-law, Jim Patrick, after building a new reman plant in Troutdale in 1989.
Thomas Elza Lucas, 91, owner of Lucas Builders Supply and Lucas Lumber, Ogden, Ut., died April 13 in Coalville, Ut. A U.S. Navy veteran of World War II, he continued working at Lucas Lumber until age 90. David Schoech, 70, retired manager of Hylton Lumber Co., Salida, Co., died March 25 in Aurora, Co. He served in the U.S. Navy during the Vietnam War. In 1970, he became a home builder and, after 11 years,
joined a lumber company in Hays, Ks. He was quickly promoted to manager of the company’s lumberyard in Russell, Ks. In 1986, he moved to Colorado, where he managed yards in Lamar, La Junta, and Salida. Ruby Evelyn Hollifield, 97, former co-owner and bookkeeper of Hollifield Lumber Co., Philo, Ca., died March 23. She and her husband, Buster, opened the lumber mill in the 1940s.
Dave A. Heitzman, 81, retired commodities buyer for BMC West, Bellevue, Wa., died April 15 at his new home in Montana. He served with the Army during the Korean War, earning a Bronze Star with valor and a Purple Heart. He managed retail yards in Harrah, Zillah, Prosser, Wenatchee and Quincy, Wa., before retiring from BMC in 1989. Howard H. Hofmann, 80, owner of Howard Hofmann & Associates, Albuquerque, N.M., died April 19 of lung cancer. Before forming his own lumber and panel consulting service, he was a field rep for Western Wood Products Association in San Jose, Ca., and American Plywood Association in Denver, Co. He also worked for Weyerhaeuser Building Systems, Hillsboro, Or. Gilbert Carpenter, 86, longtime manager for A.C. Houston Lumber Co., died April 4 in Santa Fe, N.M. After seving in the U.S. Navy from 1946 to 1948, he began his lumber career as a salesman with Independent Lumber in Colorado, before joining A.C. Houston, eventually serving as general manager and overseeing the design, construction and opening of new yards in Colorado, Idaho, New Mexico, California and Nevada. Francis “Franc” H. Rice, 82, former partner and co-manager of Linder-Kind Lumber Co., Helena, Mt., died March 18. He served in the U.S. Army during the Korean War. Building-Products.com
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360˚ Outdoor Illumination
LED deck and railing lights from Regal Ideas Inc. are designed to add illumination and ambience to the entire perimeter of an outdoor living area, instead of merely pointing at a single area. The lights are operated by remote control to offer different color and brightness choices.
REGALIDEAS.COM (800) 819-4344
Preserve the View
Super View stainless steel cable systems from AllTime Manufacturing are easy to install in any decking application. No special tools are required. The cables and fittings are made in the USA of marine-grade, stainless steel. Many sizes and styles are available, plus custom orders, as well as a full range of stainless steel and power-coated aluminum post and rail components systems.
ALLTIMEMFG.COM (800) 248-7325
Walls of Glass
Moving glass wall systems from Milgard now offer the choice of bi-fold and pocket door operating styles, in addition to the existing stacking option. Finishes include white and dark bronze anodized aluminum, and aluminum-clad wood with clear vertical grain Douglas fir and pine.
MILGARD.COM (800) 645-4273
Building-Products.com
May 2014
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49
Wide-Open Doors
Kommerling Window & Doors’ new PremiDoor lift/slide doors can be extended to 38’ wide, for easyglide opening and closing. The 19’-wide-by-8’ tall doors provide a stylish link between a home’s interior and exterior spaces. Opening modes range from two doors to four, with choice of fixed and lift/sliding sashes.
KOMMERLINGUSA.COM (800) 330-2239
The Look of Stone
Durata mortarless stone veneer from Ply Gem is designed to accent exterior siding, outdoor living spaces, and interior areas. The product’s easy-to-install, interlocking panels are lightweight and come in two colors—Shenadoah and Antigo—along with coordinating accessories.
PLYGEMSTONE.COM (888) 975-9436
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Building-Products.com
Multi-Purpose Trim Screws
Screw Products has designed a new white head-trim interior/ exterior screw appropriate for a wide range of projects. A proprietary coating protects against corrosion when used with ACQ and CCA pressure treated lumber. Available in various sizes— 9x1-5/8, 9x2, 9x2-1/2, and 9x3— the fasteners can be ordered in various quantities, in jars and pails.
OMG Roofing Products’ RedLine AFR roof drain provides maximum allowable flow for gravity-based, open-channel roof drainage systems. The device is designed to create a watertight connection and minimize the danger of pressurized flow. It can be installed by hand, on the rooftop, so building occupants are not disturbed.
Stolit Milano wall finish from Sto Corp. can be used on both interior and exterior surfaces. The water-based acrylic finish is breathable, mildew resistant, and can be top-coated to provide additional surface protection. It is also low-VOC, requires no additives, and unused material can be stored in the sealed pail.
SCREW-PRODUCTS.COM
OMGROOFING.COM
STOCORP.COM
(877) 844-8880
Building-Products.com
Reliable Roof Drain
(800) 633-3800
Breathable Wall Finish
(800) 221-2397
May 2014
The Merchant Magazine
51
Imported Tile Cutters
Corona Tools distributes Bellota manual tile cutters to the North American market. Bellota Pro is designed for professional installers and big tile jobs. Bellota Pop can be used to cut common ceramic and porcelain tiles, as well as mosaic glass. Both product lines include two solid steel, chromeplated guides to ensure maximum wear resistance, noticeably smoother gliding, and exceptional scoring straightness.
Hardware on the Slide
New sliding door hardware from L.E. Johnson is easy to install with a Phillips screwdriver, hammer and, occasionally, a drill. Series 2200 includes a heavy extruded aluminum track, zinc-plated hangers of heavy-gauge steel, molded nylon wheels, and brass-plated pulls. A one-piece metal guide assembly adjusts laterally for a quick plumb.
JOHNSONHARDWARE.COM
CORONATOOLSUSA.COM
(800) 837-5664
(800) 847-7863
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VISIT OUR WEBSITE FOR YOUR FREE SAMPLES OF GRK’S DECKING TEAM! “Drive with Speed, Quality & Confidence!” 52
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May 2014
www.grkfasteners.com 800.263.0463 Building-Products.com
NAWLA LEADERS Photos by The Merchant
NORTH AMERICAN Wholesale Lumber Association held its annual Leadership Summit March 30-April 1 at the Lodge & Spa at Callaway Gardens, Pine Mountain, Ga. [1] Jody & Todd Lindsey. [2] Vicki & Carl Lamb. [3] Joshua Tyler, Harris Gant. [4] Warren Reeves, Josh Goodman, Kyle Little. [5] Steve Carasso, Brandon Arling. [6] Ken Trainor, Kimmo Jarvinen, Clark Spitzer. [7] Mark Saracco, Ian McLean. [8] Robert Harris, David Brown, Richie Ford, Paul McRae. [9] Bob Bell, Philip Duke. [10] Building-Products.com
Mark McLean, Robyn Louderback. [11] John Stockhausen, Lawrence Newton, Jeff McLendon. [12] Frank Johnston, Donna Whitaker, Joe Brown. [13] Larry & Kathy Boyts. [14] Jim & Cindy McGinnis. [15] Dusty & Penny Hammack. [16] Kathy Price, Terry Miller. [17] Rob Hruby, Grady Payne, Tom Rice. [18] Bill & Cindy Anderson. [19] Julie & Mark Kasper. [20] Brad Schneider, Karin Bates. [21] Mary Ann Stockhausen, Russ & Linda Hobbs. (More photos on next two pages) May 2014
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NAWLA LEADERS Photos by The Merchant
NAWLA LEADERS (continued from previous page) in Pine Mountain, Ga. [1] Pat Managan, Thom Black, Shelly & Scott Elston. [2] Elizabeth Rustja, Alan Oakes. [3] Craig Sichling, Ben Skoog, Dowe McNeil. [4] Curt & Julie Stevens. [5] Adrian Blocker, Scott Vande Linde, Chris McIver. [6] Todd Hixson. [7] Doug O’Rourke, Clarence Young. [8] Anthony Muck, John Cooper. [9] Mike Phillips, Kip Fotheringham. [10] John Quast, Heath Hutchison. [11] Andy Toombs. [12] Ricardo Roman, J.R. Virnich.
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May 2014
[13] Patrick Majure, Anthony Muck, Warren Reeves. [14] Mary Lou Carlson, Vicki Klumb. [15] Robert Jordan, Mark Wells. [16] Andrew Goodman, Konrad Tittler. [17] Rob Latham, Joni Berghouse, Amy Latham, Kevin Rooney. [18] Julie McLean. [19] Ashley Boeckholt, Aaron Sulzer, Kevin Cordesman. [20] Bob McSorley, Jim Pattillo, Dave Adams. [21] Ken Tennefoss. [22] Rick & Lillian Ekstein, Shelly & Scott Elston. (More photos on next page) Building-Products.com
NAWLA LEADERS Photos by The Merchant
NAWLA (continued): [1] Mark Erickson, Linda & Barry Schneider. [2] Buck & Janie Hutchison. [3] Kimber & David Hutson. [4] Jim Krauseneck, Mike Mordell. [5] Bob Bratton, Bryan Smalley, Donna Whittaker, Jeff
Building-Products.com
Baumgartner, Paul McRae. [6] Kevin & Karen Rooney. [7] Joe & Mary Jo Honochick. [8] Elizabeth & Steven Rustja. [9] Laurie Creech. [10] David Jeffers, Jim Robbins. [11] Richie Ford, Mark Richardson.
May 2014
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55
SO. CAL. GOLF Photos by The Merchant
BLACK GOLD Golf Course, Yorba Linda, Ca., was the site of West Coast Lumber & Building Material Association’s Southern California golf tournament April 10. [1] Geoff Schroeder, Thomas Stremlau, John Neel, Alex Uniack. [2] David Abbott, Jim Giehl, Bob Derham, Raymond Torres. [3] Brad Satterfield, Sal Castillo, Chris Meichtry, Barrett Burt. [4] Michelle Chase, Tom Barclay, Gavin Morris, Chris Johnson. [5] Jim Russell, Danny Andrea, Chris Swanson, Rick Deen. [6] Matt Manke,
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Keith Berg, Andrew Manke, Scott Whitman. [7] Corey Dexter, John Thompson, Jason Rutledge, Scott Foley. [8] Bart Weber, Rick Smith, Danny Sosa, Jeff Norihiro. [9] Mark Ramsey. [10] Mark Huff, Rich Langton. [11] Ted Smith, Al Reed, Joe DeRoest. [12] Grant Pearsall, Pete Ganahl, Mark Ganahl, Sheldon Doss. [13] Ron May, D’quawn Jefferson, Jay Sin, Mike Caputo. [14] Cory Robertson, Ryan Lauterborn, Joe Allotta, Dan May. (More photos on next two pages) Building-Products.com
SO. CAL. GOLF Photos by The Merchant
GOLF (continued): [1] Paul Corso, John Pasqualetto, Rex Klopfer, Scott Middaugh. [2] Vern O’Connor, Ed Miron, Clayton Mattox, Troy Huff. [3] Frank Bader, Dan Croker. [4] Don Kavert, Dan Lucero, Steve Mitchell, Tony Campbell. [5] Keith Cotarelo, Joe McCarron, Gerry Merker, Kim Wood. [6] Terry Rasmussen, James Cederholm. [7] Keith Lyng, Mike
Nicholson, Jon Hagen, Rick Parker. [8] Mike Claborn, Pete Meichtry, Mark Davis, Jim Nicodemus. [9] Pat Hawthorne, Bill Sullivan, John Allen, Jack Butler. [10] Bob Nagle, Monika Bartko, Mark Rommel, Dean Costello. [11] David Iblings, Rolando Robles, Carl Henoch, Doug Radestock. [12] Dale Verseput, Fedra Chavez, Luisa Torres, Geoff Garner. (More on next page)
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Building-Products.com
May 2014
The Merchant Magazine
57
SO. CAL. GOLF Photos by The Merchant
WCLBMA golf (continued from preceding pages): [1] Chris & Debbie Quezambra, Ed Brown, Curt Nierman. [2] Victor Fresca, Tom Devlin, Bill Shadden, Alain Patten. [3] Chris Likert, Mike Russell, T.J. Johnson, Mike Howe. [4] Tom Angel, Bill Young, Ron Hillman, Larry Christensen. [5] Tim Hummel, Chris Manning, Brenden Hexberg, Chris Skibba. [6] Brian Hurdle, Kevin Paldino, Peter Howe, Craig Larson. [7] Jeff Pardini. [8]
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Paul Frazier, Deonn Deford, Keith Hitchcock, Rick Parker. [9] Troy Allen, Jason Womack. [10] Max Young, Luis Rojas. [11] Tim Dickison, Sean Fogarty, Marty O’Hara. [12] Hank Hornsveld, Walter Frederick, J.C. Lopez. [13] Tim Kennedy, Bill Ferguson. [14] Matt Deitchman, Micah Orr, John Gauger. [15] Sergio Paz, Fabio Gaipa, Troy Staufenbeil, Kelly Lyon. [16] Carl Christoferson, Brett Collins. Building-Products.com
MASTERPIECES: The Merchant Magazine publisher Alan Oakes (front) joined the spouse/companion program “Wine & Canvas,”
a wine, food and painting class, during NAWLA’s recent leadership summit in Pine Mountain, Ga. The session was sponsored by
ASSOCIATION Update Mountain States Lumber & Building Material Dealers Association will present a seminar on mechanics’ lien law June 12 at Renaissance Hotel, Denver, Co. The annual Colorado WOOD Council’s golf tournament will be July 15 at Ranch Golf & Country Club, Westminster, Co. Proceeds will benefit the Tennyson Center for Children.
press insulation, which can diminish its R-value and create a cold area in the building envelope. The report illustrates how to com-
Digger Specialties. For more event photos, see pages 53-55.
bine raised-heel trusses with wood structural panels to resist loads that act on the truss connection, while meeting the lateral load and wind uplift load requirements of International Residential Code without additional cutting or blocking.
West Coast Lumber & Building Material Association will host its annual 2nd Growth summer conference July 17-18 at Omni Las Palmas Resort & Spa, Rancho Mirage, Ca. Western Hardwood Association has scheduled its 2nd annual Western Hardwood International Convention and Expo for May 19-22 at Holiday Inn Airport, Portland, Or. Tommy MacDonald, a spokesperson for the Hardwood Forest Foundation, will be the special guest. APA–The Engineered Wood Association has released a new system report outlining an efficient, costeffective construction solution for using wood structural panels with raised-heel (or energy-heel) trusses. “Use of Wood Structural Panels for Energy-Heel Trusses” (Form SR103) provides a pre-engineered solution for preventing trusses from comBuilding-Products.com
May 2014
The Merchant Magazine
59
Hampton Gets Grant to Keep Darrington Mill Running
Hampton Affiliates’ sawmill in Darrington, Wa., received a $300,000 grant to help keep the business operational while State Route 530 is repaired. Since a March 22 landslide closed the highway, truckers transporting lumber to and from the mill have been forced to take a longer route. “In order for them to drive that extra 90 miles, they have to charge us more,” mill manager Tim Johnson said, noting that added trucking costs topped $500,000 in just one month. The grant is a combination of $150,000 from the state Department
of Commerce and $150,000 from United Way of Snohomish County. It will be used to purchase fuel cards that will be distributed to truckers serving the mill. The state’s Department of Transportation hopes to have one lane of the highway open to local traffic by
fall, but says a definite estimate will have to wait until debris has been cleared. “Our objective is to keep the mill operating and keep people working,” said Johnson. “These funds will help us do that for as long as possible by offsetting our increased fuel costs.”
OVER 1,500 attended Meek’s Lumber & Hardware’s recent 9th annual Contractor Expo in South Lake Tahoe, Ca. During the event, more than $30,000 was given away in raffle prizes, including six 60" flat screen TVs. Grand prize winner Pete Garcia (photo at right, flanked by president Carrie Meek and chairman of the board Bill Meek) took home $1,000 in cash. The next expo: April 23-24, 2015.
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$9. Private box, $15. Column inch rate: $55 if art furnished “cameraready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-0231 or dkoenig@building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660. Deadline: 18th of previous month.
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DATE Book Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.
National Lawn & Garden Show – June 10-12, Crowne Plaza Denver International Airport, Denver, Co.; (888) 316-0226; www.nlgshow.com.
Do it Best – May 17-19, spring market, Indianapolis Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.
Mountain States Lumber & Building Material Dealers Assn. – June 12, mechanic’s lien law class, Renaissance Hotel, Denver, Co.; (303) 793-0859; www.mslbmda.org.
Composite Panel Assn. – May 18-20, spring meeting, Puerto Vallarta, Mexico; (301) 670-0604; www.compositepanel.com.
Window & Door Manufacturers Assn. – June 17-19, technical conference, Pittsburgh, Pa.; (800) 223-2301; www.wdma.com.
Hardwood Plywood & Veneer Assn. – May 19-21, annual convention, Waldorf Astoria, Naples, Fl.; (703) 435-2900; www.hpva.org.
Southern California Hoo-Hoo Club – June 18, meeting, El Prado Golf Course, Chino, Ca.; (323) 559-1958; www.hoohoo117.org.
Western Hardwood Association – May 19-22, international convention & expo, Airport Holiday Inn, Portland, Or.; (360) 8351600; www.westernhardwood.com.
Western Wood Preservers Institute – June 22-24, summer meeting, Meritage Resort & Spa, Napa, Ca.; (360) 693-9958; www.wwpinstitute.org.
Pacific Coast Wholesale Hardwood Distributors Association – May 22-23, annual meeting, St. Regis Monarch Beach, Dana Point, Ca.; (602) 272-1213; www.pcwhda.com.
PCBC – June 25-27, Moscone Center, San Franscisco, Ca.; (800) 956-7469; www.pcbc.com.
North American Rail Shippers Association – May 28-30, annual meeting, Parc 55 Wyndham Hotel, San Francisco, Ca.; (972) 690-4740; www.railshippers.com. American Architectural Manufacturers Association – June 1-4, national summer conference, Hyatt Regency, Indianapolis, In.; (847) 303-5664; www.aamanet.org. Tacoma-Olympia Hoo-Hoo Club – June 3, meeting & elections, La Quinta Inn, Tacoma, Wa.; (253) 531-1834. West Coast Lumber & Building Material Association – June 5, associates/dealers golf tournament, Rancho Solano Golf Club, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org.
Door & Hardware Institute – June 26-27, annual convention, Hilton Anatole, Dallas, Tx.; (703) 222-2010; www.dhi.org. Roof Coatings Manufacturers – July 14-17, International Roof Coatings Conference, Royal Sonesta Harbor Court, Balimore, Md.; (202) 591-2452; www.roofcoatings.org. Mountain States Lumber & Building Material Dealers Assn. – July 15, Colorado WOOD Council golf tournament, Ranch Golf & Country Club, Westminster, Co.; (303) 793-0859; mslbmda.org. West Coast Lumber & Building Material Association – July 1718, 2nd Growth summer conference, Omni Las Palmas Resort & Spa, Rancho Mirage, Ca; (800) 266-4344; lumberassociation.org.
Willamette Valley Hoo-Hoo Club – June 6, golf tournament, Shadow Hills Country Club, Junction City, Or.; (541) 485-5979.
Black Bart Hoo-Hoo Club – July 18, clay shoot & BBQ, Black Point Sports Club, Sonoma, Ca.; (707) 588-7613; www.blackbarthoohoo181.org.
Western States Roofing Contractors Association – June 8-11, convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com.
Southern Oregon Lumbermans Assn. – July 24-25, golf tournament & BBQ, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.
Building-Products.com
May 2014
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ADVERTISERS Index
IDEA File
For more info on advertisers, call directly or visit their websites
Bathroom Contest Is a Winner A 94-year-old dealer in Marcus, Ia., dis-
covered a sure-fire way to increase traffic in its kitchen and bath showroom: an Ugly Bathroom Contest. The fun event was the first ever for Marcus Lumber, which encouraged shoppers to bring in photos of their ugly bathroom. Each and every picture—of pink sinks, purple vanities, and horrendous wallpaper—was displayed in the showroom. Entrants were encouraged to ask their friends and family to come into the store and vote for the ugliest. After one month, one of the entrants—with metallic silver wallpaper and green sink—was declared the winner. The reward was a new vanity cabinet and top, a Delta faucet, and two gallons of paint. “We had a lot of fun with this contest, and so did our customers,” says Jim Leavitt, a bathroom designer at Marcus. “We’re excited to do what we do best: turn the bathroom from ugly 2014 Contest Winner to outstanding.”
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Allura [www.allurausa.com] ............................................................7 Allweather Wood [www.allweatherwood.com] ..................Cover III AZEK [www.azek.com]...................................................................27 Big Creek Lumber Co. [www.big-creek.com]...............................51 Blue Book Services [www.bluebookservices.com] ....................46 Boise Cascade [www.bcewp.com]..................................................4 BW Creative Wood [www.bwcreativewood.com] .......................17 California Cascade Industries [www.californiacascade.com]....28 California Redwood Co., The [californiaredwoodco.com]..........29 Capital [www.capital-lumber.com]................................................38 C.T. Darnell Construction [www.ct-darnell.com].........................41 DeckWise [www.deckwise.com] ...................................................55 Distribution Management Systems Inc. [www.dmsi.com]..........45 Eco Chemical [www.ecochemical.com] .......................................26 Fasco America [www.fascoamerica.com]....................................49 Fiberon [www.fiberondecking.com] ...............................................3 Fontana Wholesale Lumber [fontanawholesalelumber.com].....57 GRK Fasteners [www.grkfasteners.com]...............................30, 52 Huff Lumber Co. .............................................................................47 Humboldt Redwood [www.getredwood.com]....................Cover III Inteplast Group [www.tufboards.com] .........................................20 Jaaco Corp. [www.jaaco.com].......................................................28 J.M. Thomas Forest Products [www.thomasforest.com] ...........39 Jones Wholesale Lumber [www.joneswholesale.com] ..............19 Keller Lumber .................................................................................25 Mendocino Forest Products [www.mfp.com] ....................Cover III MoistureShield [www.moistureshield.com] ...................................5 Norman Distribution Inc. [www.normandist.com].......................39 North American Wholesale Lumber Assn. [www.nawla.org] .....33 NyloBoard [www.nyloboard.com].................................................24 PrimeSource Building Products [www.primesourcebp.com] ....62 Railing Dynamics Inc. [www.rdirail.com] .....................................59 Redwood Empire [www.redwoodemp.com] ......................Cover IV Regal Ideas [www.regalideas.com]...............................................15 Roseburg Forest Products [www.roseburg.com] .......................11 Screw Products [www.screw-products.com] ..............................61 Simpson Strong-Tie [www.strongtie.com].......................21, 23, 25 Siskiyou Forest Products [www.siskiyouforestproducts.com] .31 Sure Drive USA [www.suredrive.com]..........................................50 Swanson Group Sales Co. [www.swansongroupinc.com].........22 Thermory USA [www.thermoryusa.com] .....................................48 TigerDeck [www.tigerdeck.com] ...................................................32 TruWood-Collins [www.truwoodsiding.com] ........................8A-8B Universal Forest Products [www.ufpedge.com] ................Cover II Vaagen Bros. Lumber Inc. [www.vaagenbros.com]....................44 Viance [www.treatedwood.com] ...........................................Cover I Westbury Railing [www.westburyrailing.com] ............................42 Western Forest Products [www.westernforest.com] ..................35 Weyerhaeuser [www.weyerhaeuser.com]....................................37 Woodway Products [www.woodwayproducts.com] ...................50 Yakama Forest Products [www.yakama-forest.com]..................46 Building-Products.com
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PEOPLE ARE BUILDING AGAIN and that means increased demand for timbers. That’s good news for yards like yours; especially if you’re carrying Humboldt Redwood Con Heart, Douglas fir and Pressure Treated Timbers. Premium quality Humboldt Redwood, Douglas fir and Pressure Treated Timbers give your customers everything they need – unmatched strength, durability, beauty, and eco-friendly FSC® Certification. Our Redwood, Douglas fir and Pressure Treated Timbers are
available in 6” and larger sizes; in lengths up to 24 feet. Call us for your 3” and 4” dimension needs too. And if you have a special request we can custom cut up to 18” x 24” solid sawn timbers. Get real. Get strong. Get ready for a great year with Humboldt Redwood, Douglas fir and Pressure Treated Timbers. Contact Julie Wright at (707) 764-4450; or JWright@hrcllc.com.
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