etitive ligence Survival of the fittest

four outside salespeople on the road, with two more in inside-support staff. Each salesperson takes everything from start to finish on a programbringing in the plans, doing the free estimates, on to placing orders, the follow-up and credits. They deal with a contractor's customers for him. too: they answer questions as they come up. This builds relationships and the element of trust that comes along with that. And, once established, those relationships are pretty hard to beat!"

Along with strong independents, there's a Lowe's in Brunswick and a Depot even closer. But Downeast separates itself with both inventory and service. "Contractors can drive up and park 50 feet from the door. We help load their vehicles and show them where things are; this is not a big cavern. We hear a lot from our customers that 'Everybody knows me here, and I know everybody.' They see the same people tomorrow and the next dayno surprises.

If,/HEN folks cheered. "Many V Y happy returnsl" they weren't just talking in the wind. Downeast Energy & Building Supply, owned by the Morrell family since 1908, celebrated its 100th anniversary last year with plans to stand tall in its community for many years to come. And there's a fourth generation of Morrells in training up there in Brunswick, Me., ready to make good on that promise.

The company was founded in 1908 as Brunswick Coal, but soon firewood, lumber, oil and propane joined the mix. A separate Building Supply Division took roots in the '80s, after a disastrous fire "took the whole place down," recalls Peter Bernier, v.p. of the division. "We rebuilt the store and warehouse and made major changes."

Today the division counts 40 employees in addition to the office staff, IT crew, and marketing and training departments it shares with the larger Energy Division, with its l3 outposts in Maine and New Hampshire, allowing the Building Supply force to do what it does best-and that's sell sticks. "Our customers are "15-80Vo contractors, and that's the way we like it-or, liked it," Bernier amends with a rueful joke when faced with the current economic upheaval. "Most of them built two or three houses a year, but, while there's still some new-home activity, they've turned to remodeling."

And that's another niche in which Downeast is well-prepared to help them. The operation boasts a Kitchen Display Gallery, whose staff stands ready to walk a contractor's own clients through their choices, saving the pros both time and patience. The adjoining millwork displays provide margins as bountiful as the choices. "Well, at least they used to," Bernier laughs again. "Even those are more competitive today."

No surprise. In fact, local competition, always vibrant in Maine, has become "even more intense," he notes. But Downeast maintains a strong distinction. "Operationally, our biggest difference-and plus-is that we have

"We carry everything they need, from lumber and plywood to hardware, power tools, Benjamin Moore paints, and Andersen windows. We have two boom trucks for their convenience (costly to purchase, costly to maintain," Bernier adds). "We offer free delivery-which is even more challenging these days," he points out, "because we're reaching farther away, looking for business."

It helps that the Energy and Building Supply divisions are adept at at cross-marketing. "We play up each other's advantages. We also do a fair amount of print advertising-not that it reaches our pros. but it gets our name out to the community, and it pays off. It's happened a number of times that a pro comes in and says,

'I've never done business with you, but my client insisted!' Then, after we show them what we can do for them. they're back as some of our better customers."

Downeast takes proactive steps to make them feel valued-everything from hosting weekly, vendor-sponsored barbecues in the summer to contractor cruises with over 150 customers sailing Casco Bay, complete with dinner and band. The company also invests in inviting and transporting them to industry shows and staging green building seminars. "We get a full house, which we can hold in the conference area of the Energy Division, which is otherwise used for staff training," says Bernier. And Downeast's own IT staff also offers customers training on business skills, such as computer software.

The staff is long on tenure. "I started here myself in 1978, right out of college," attests Bernier, and he's not alone in that boast. To foster retention, "We give awards and celebrate years of service. We also offer training in such skills as customer service, using a company in Portland we have on retainer. Right now, we're offering a course in personal development to 25 individuals in things like presentation skills, how to do a PowerPoint."

Indeed, Downeast not only believes in education, it walks the talk. Every year it awards multiple scholarships for children of employees to further post-high school studies. In addition, it offers additional scholarships to kids unaffiliated with the company with interest in careers in the building supply and energy industries to continue their post-high school education in community colleges.

To spark that interest at an even earlier age, the company hosts full-day visits to its yard for area high school classes, called JMG (Jobs for Maine Graduates), to introduce them to job opportunities. "The kitchen department will explain how a designer works, and the yard will show them what a driver does," Bernier says. "We give demonstrations on safety, have speakers about various job functions, and end up with pizza. We emphasize that there are good jobs out there that don't necessarily require college-plenty of opportunities. While we don't know if it's paid off in future employees directly yet, we feel it's a community service, and lets them know that not every student has to mainstream to college."

Speaking of community service, that's an area where Downeast also takes a lead, thanks to the Morrell family's generosity. "We help on library, hospital and church building or renovation, and also in donations of our time. I'm on the board of the United Way, for instance," he adds. "For years, the family wanted donations to remain anonymous, but when folks insisted-'You should tell people!'-they decided that wasn't such a bad idea, after all."

Today, the firm sponsors displays in local home shows and joins in Maine's Green Collaborative Effort, educating consumers in savings to be made in energy and advances in green building products. For its 100th anniversary, a weekend-long celebration attended by the governor, Senator Susan Collins, and radio and tv stations, Downeast held Yard Olympics contests, such as races, nail driving, sawing, and assembling wheelbarrows.

Sure, Downeast is feeling the pain of the times. But it has not laid off a single person. Instead, seeing the way the wind was blowing as early as two years ago, the company started examining savings possible through job attrition. "Plus," Bernier adds, "also having an energy company allows us to spin off our Building Supply drivers to them during the winter."

Nonetheless, "we're feeling the crunch in every way, and our community has been hit especially hard. A local Naval Air Station is slated to close, which means losing a big piece of the community-700 housing units on base plus other homes up for sale as people move out. But there's a redevelopment committee, which is very active. Still, we'll be hurting long after the national economy recovers," he feels.

"Fortunately, Downeast is well established and doesn't carry a lot of debt. We're very careful of spending, so we can withstand this for a long time. We did see a little spike in the past three or four weeks, but those will come and go. Summer is flat, but that's okay. But next winter will be very difficult around here. I'll be surprised if all the players are left standing a year from this time...."

Expect Downeast, however, to be standing tall.

- A former award-winning LBM trade magazine editor, Carla Waldemar writes frequently on the industry. Contact her at cw aldemar@ c omc as t.net.

R:rln:ns

Housatonic Lumber, Derby, Ct., closed May 29 af\er 102 years

Medina Lumber & Hardware has been opened by Tom and Warren Snyder at the former site of Somerset Lumber, Medina, N.Y,; they hope to add a lawn & garden center next summer

Coastal Lumber & Supply, Niceville, Fl., has closed after 25 years...

Iverson's Lumber, Highland, Mi., is operating its Milford, Mi., branch as a clearance center as it tries to sell the property

Goodale Hardware. Grandview Heights (Columbus), Oh., is being opened this summer by Jeff T,ettler and his son, Jeffrey T,ettler

Matthews & Fields Lumber Co., Henrietta, N,Y., agreed to lease tlree acres of the former Babcock Lamber Co. yard in Lancaster, N.Y., to warehouse wood products as its prepares to open a sales office in nearby Buffalo, N.Y. ...

Island Hardware & Lumber is the new name for Arnold Transit's hardware and fuel operations on Mackinac Island, Mi., after their acquisition by Kirk Lipnitz; he will keep the store open year-round

Marvin's moved to a new, larger location in Demopolis,Al.

84 Lumber reopened its mothballed W. Houston, Tx., yard and engineered wood products centers in Houston and Dallas, Tx.

Rylee's Ace Hardware broke ground on a $4-million replacement store with lawn & garden center in Grand Rapids, Mi.

Builders FirstSource has closed its branch in Cincinnati, Oh.

Frontier Lumber, Erie, Pa., added a 2,000-sq. ft. Frontier Home Products & Design Center ...

Bradco Supply opened a new branch in Wauconda, I1.

BMC West parent Building Materials Holding Corp. filed Chapter 11 bankruptcy ...

Bradco Supply Corp., Avenel, N.J., acquired Dynamic Roofing & Siding Supply, Warminster, Pa.; Ray Ace was named branch mgr., and Dynamic's Barbara Krumins will stay on to ensure a smooth transition period ...

Lowe b unveiled a new store June 19 in SE San Antonio, Tx., and expects a 3rd quarter 2010 opening in Salem, N.H. ...

MarJam Supply Co. signed a l0-year lease for a 65,518-sq. ft. warehouse on 4.5 acres in N. Miami Beach, Fl.

Habitat for Humanity opened a replacement ReStore May 18 in Kannapolis, Md.; a new 3,000-sq. ft. ReStore June 13 in Danbury, Ct. (Joanne Bosshardt, coordinator), and, a24p00-sq. ft. outlet June 1l at an old 84 Lumber vard in Newnan, Ga. (Sharon Hazel,mgr.)

Wnor:sm:rs/trrutrcrur:rs

Hager Group (f.W. Hager Luntber), Grand Rapids, Mi., is closing after 81 years

Lee Roy Jordan Lumber,Dallas, Tx., moved into a new facility, nearly a year after a speeding car crashed into the old building and it burned to the ground (see JuIy 2008,p.41)...

North Paciftc, Springfield, Ma., had four forklifts worth $120.000 stolen in late May

Lo ui s i ana - P ac ifi c temporarily laid off 43 workers at its LSL plant in New Limerick, Me. ...

International Paper Co. shuttered its Franklin, Va., lumber mill May 3l

Clopay Building Products is closing its gargage door plants in Russia, Oh., and Baldwin, Wi., consolidating production in Troy, oh....

U.S. Lumber Group, Atlanta, Ga., has installed new lBM business intelligence sofware to gain in-depth reporting capabilities in real time vs. the daily reports of its previous system

JeId-Wen next month will close its door manufacturing plant in Oshkosh,Wi....

Arch Wood Protection and Arch Treatment Technologies moved to new offices in Atlanta, Ga. ...

Temple-Inland is closing its sawmill in Buna, Tx., for an undetermined period of time ...

Bonsal American has renovated and expanded its Sakrete manufactwing facility in Cincinnati, Oh. ...

Sherwin Williams Co. will close its Olive Branch, Ms., paint plant by year's end

Masonite International Corp. has restnrctured and emerged from Chapter 11 bankruptcy, 85 days after its filing

Boston Cedar & Millwork, Holbrook, Ma., is now distributing the Azsx Deck Terra Collection in Long Island, eastern N.Y., and six New England states

Atlanta Hardwoods Corp. is now distributing Contact Industries' veneer-wrapped mouldings in Ga., Al., Tn,, Ms., and northern Fl. from its five Hardwoods Inc. DCs and from White County Mouldings,Cleveland, Ga. ...

Parksite, Batavia, Il., is now distributing Circulation Solutions roofing ventilation products from its 10 DCs

Advantage Trim & Lumber Co., Grover, N.C., has received FSC chain-of-custody certification for its ipe and Tigerwood decking and hardwood flooring

Anniversaries: Lyons Do it Best Lumber & Hardware, Brighton Park and Frankfort, Ky., 100th Schade Builder's Supply, Helena, Oh., 50th ... Duncan Builders Supply, Duncan, Ok., 45th .,.

Housing starts in May jumped L7.2Vo to a yewly rate of 532,000, thanks to a 61 .7% spike in multifamily regionally, starts rose ZVo in the Northeast, 11.17o in the Midwest ll.IVo. and 16.87o in the South ... permits were up 4Vo to a 5l8,000 rate.