Modern businessstrategy develops exotic hardwood sales

EDROBABLY no one would ber !- on the success of a wood products company operating on an island with a limited supply of wood, no skilled sawmill labor pool, and no railroad. To make the gamble more of a long shot, the company had been taken over by a man with a background in financial analysis, mergers and acquisitions, but no lumber experlence.

This was the situation when Glen Mueller, president of CampbellBurns Wood Products Co., Inc., Hilo, Hi., acquired the operation in 1977. Backed with a B.A. and an M.B.A. from Marquette University in Wisconsin and almost l0 years of operations analysis and planning with a large multi-market corporation in California, he initiated a turn around in the firm which has earned a profit as well as a reputation of being reliable and honest.

His first move was to concentrate on the exclusive production of Acacia koa, the beautiful hardwood native to Hawaii. This was logical since Campbell-Burns is located on a 9 Vz acre plotin the middle of the lush tropical forests where koa grows. A favorite wood of the Polynesians, koa, sometimes called the Hawaiian mahogany, had been used in war canoes, ceremonial masks, outriggers, spears, and calabashes for years.

Mueller's second move was to tell the world of this beautiful wood, a natural for use in fine furniture, cabinets, boardrooms, office interiors, architectural woodwork and wood specialties. He had some magnificent examples to illustrate his story. Both the handsome doors in the grand ballroom and the grand staircase in the Iolani Palace in Honolulu are built entirely of koa. Construction is credited to King David Kalakaua in the latter part of the lfth century. Of more recent origin, but equally attractive, is the paneling in the office of the governor of Hawaii. Throughout the Islands this colorful wood with the interesting grain is found in paneling, furniture, and cabinetry such as the attractive case which displays an artifact collection at the Naniloa Surf Hotel in Hilo.

Campbell-Burns accounts for 85 go of the koa production in the Islands with the competition coming from small one/two man circular sawmill operations. The main competition, accoroing to Mueller's wil'e, Missy, who takes an active role in the business, is from other hardwood species such as walnut, teak and Honduras mahogany. "We cope with it by attempting to make koa better known to us€rs of other hardwoods." The majoriry of sales, outside Hawaii, go to the mainland United States and Japa.n in containerized shipments from the deep water port of Hilo.

The number of customers for koa is increasing according to company reports. Buyers are predominately hardwood wholesalers and veneer and plywood manufacturers.

Mueller attributes his success to applying business fundamentals in a disciplined manner and by drawing

Sfory at a Glance

Aggressive marketlng wlth sound business practices

tums around Hawailan wood products lirm . . . koa wood sales increasing leaslblllty study ol marketing other nalive woods underuay.

upon previous experience in turnaround business situations.Most importantly; he says, by insisting upon a high level of performance and quality at dl times.

A beautiful wood coupled with aggressive marketing and the application of sound business practices appears to have turned a long shot into a sure thing for Mueller.