More distributors are producing their own l-ioists

qEVERAL engineered wood prodLJucts distributors have discovered an added edge in selling I-joists: making them themselves.

Instead of I-joists, Alberta, Canadabased Nascor Inc. provides remanufacturers and wholesalers with everything they need to produce and market the products themselves, reportedly providing lower costs and greater control of inventories, quality, pricing and distribution.

Back in the 1980s, in addition to manufacturing wall panels, Nascor used to distribute other manufacturers' I-joists to its builder clientele. "At the time there were only a limited number of people to buy from," recalls James Lind, licensing manager. "It was no problem getting I-joists in the winter, but they would be allocated in the summer. It was a real pain."

So, in 1989, the company expanded its manufacturing capabilities to Ijoists. The products caught on so quickly that three years later, Ontario's then-largest distributor of engineered wood products to lumber yards inquired about buying I-joists from Nascor. "Eastern Canada was too far away to ship them, so, instead, we said we'd show them how to produce them themselves," Lind says. "In a little under a month and a half. they went from no capacity to a halfmillion feet."

The distributor was able to produce I-joists for about 307o less than it cost to buy from its previous supplier. It passed part of the savings on to its customers, who received products reportedly of identical quality, appearance and spans.

Steadily, Nascor has added licensees. The company supplies the equipment, testing operations for quality control, and patented software, looks after government certification of the products, and produces custom advertising, brochures and manuals, with each licensee's name on them.

Nascor I-joists are now produced by nearly 20 wholesalers, sawmills and roof truss manufacturers, in widths up to 18" and lengths to 40'.

Licensees aren't really franchises because they can set their own prices, and can buy their raw materials from whomever they wish, unlike, say, a McDonald's franchise, which must buy its burgers and other supplies from certain suppliers.

The average I-joist operation requires five workers to operate, producing about a truckload of product in an 8-hour shift. Typically, licensees devote 7,000 to 10,000 sq. ft. of space to the operation, allowing ample room for production, quality testing, flow through and storage of the day's production, which takes about eight hours to air dry. Companies with more severe winters usually need more inside storage space.

Cost savings and control are the greatest advantages of bringing production in-house. It lowers shipping costs and eliminates shipping time, says Lind. "You can produce what vou need when vou need it. You con- trol inventory a lot better; instead of finished product, your inventory can be in raw materials. such as 2x3s and OSB, which can be used for other things. Plus, people like buying directly from a manufacturer."

To justify the investment, producers should be located in an area with healthy building activity. Those already selling I-joists are at a distinct advantase.

"Plus, people like

buying directly from a manufacturer."

And, related operations are a must. Nascor won't license its technology as a stand-alone business. Ideal candidates include the existing roof truss manufacturer or the low-margin wholesaler of 2x10s and 2xl2s. "It works well as an add-on operation, with sales, accounting and such in place, so costs can be spread over the entire company," Lind says.

To protect its licensees, Nascor controls not where they sell, but where they manufacture. Since Nascor's revenue comes from royalties (5p per lineal foot produced), its success is dependent upon its licensees' productivity. Accordingly, it wants to make sure it blocks off a manufacturing territory for the right company.

heavier loads, with capacities up to 36.000 lbs. Designed to maximize productivity and operator comfort, models come with V6, V8 or optional diesel engine.

Although several competitors, such as Clark Manufacturing, Lexington, Ky., already offer 36,000-lb. capacity trucks, Yale's new line offers improved features previously not available on like-sized trucks. according to John Piccolo, Big Trucks product manager.

He says the line grants the company entry into heavier-use "markets we were traditionally locked out of."