managed forestry

IZNOWN throushout North AA*"ri.u as a lOd-year-old business and a member of the Fortune 200, Weyerhaeuser is still fundamentally a timber company. Weyerhaeuser is trees. Acres and acres, spreading for miles through the mountains and valleys of the Pacific Northwest.

From its earliest years, Weyerhaeuser's forests have served as the foundation for the company's subsequent growth, making possible today's integrated production and marketing of lumber, structural panels, engineered wood products and paper products.

Now, more than a century after its original 900,000-acre purchase in Washington state, Weyerhaeuser continues to protect and enhance the value and productivity of its timberlands as a fundamental management objective. Today, the company manages over 5.6 million acres in the United States, over 32 million acres in Canada (most in long-term timber licenses from the government), and almost 500,000 acres in the Southern Hemisphere.

WORKING FOREST:At left, alder and Douglas fir populate Weyerhaeuser's Mount St. Helens Tree Farm near Longview, Wa.

But much has changed over the past hundred years. In the early decades, forest landowners such as Weyerhaeuser relied on unmanaged, natural forests to meet demand.

Beginning in the 1930s, the company began the first stages of sustainable forest management, protecting their lands from fire and other natural disasters, and improving reforestation techniques so that trees could be managed renewably.

In the 1960s, the company began its "high yield forestry" program, using state-of-the-art science to ensure successful reforestation and improve tree growth. New challenges arrived over the past several decades-from protecting fish and wildlife to meeting customer expectations for certified products to competition for non-wood substitutes such as steel.

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"To survive," says Cassie Phillips, Weyerhaeuser's vice president of Sustainable Forestry. "we must sustain the supply of wood from our managed forests into the future, and we must respond to environmental and customer concerns and competition from other products. Fortunately, Weyerhaeuser has a long history of scientific research and innovation, and as public and customer expectations have evolved, we have improved our ability to respond."

Weyerhaeuser manages its forests to increase the quality and volume of wood produced as well as to protect valuable natural resources. Forest practices include:

During harvest, leaving buffers of trees along streams, to protect water quality and fish habitat, and standing trees and downed logs for wildlife habitat.

Planting 300 to 600 seedlings on each acre.

. Thinning forest stands to give remaining trees room to grow.

Protecting soils from harmful compaction or erosion.

. Fertilizing stands as needed to supplement natural nutrient levels.

Harvesting at sustainable ratesapproximately 2Vo of forestlands each year in the West.

Planning harvest units to reduce visual impacts and protect unique sites, such as those with cultural, historical, or archaeological value.

In addition to Weyerhaeuser's forest stewardship practices, the company has been engaged in the Sustainable Forestry Initiative (SFI) since its that all company units-manufacturing and timberlands-will be certifiable to the ISO standard by 2005," says Phillips. "We're well on the way and especially proud of our latest achievement. Our Western Timberlands organizations in Washington and Oregon-l.9 million acres-were successfully audited and will be certified. To our knowledge, that's the largest block of private timberlands to be concurrently certified in the world."

Phillips cautions, however, that the industry and Weyerhaeuser face aggressive competition from non- wood substitutes, particularly steel and concrete. "To counter the efforts of the steel industry, the wood products industry in the United States and Canada is jointly sponsoring a woodpromotion campaign emphasizing to consumers that wood is both a renewable resource and an environmentally preferred, energy-efficient building material. inception seven years ago. Sponsored by the American Forest & Paper Association, SFI calls for a land stewardship ethic that integrates the growing, harvesting and replanting of trees for useful products with the conservation of soil, air and water quality; wildlife and fish habitat; and aestherics.

"I believe we're now at a point where the public and our customers can have confidence that managed forests can be both highly productive and able to provide the multiple benefits that are essential to societv."

Weyerhaeuser timberlands and manufacturing units in the U.S. are using the SFI standard in order to certify that its products are produced in an environmentally responsible way. In conjunction with SFI, Weyerhaeuser follows the standards developed by the International Organization for Standardization (ISO), which focuses on how well a company's management practices meet environmental requirements. This certification approach by a third party tells consumers the product was made from wood grown in a forest managed according to a defined standard.

"Weyerhaeuser's commitment is

ROCK SOLID: Cultured Stone, a division of Owens Corning, opened a 200,000-sq. ft. stone veneer manufacturing plant in Chester County, S.C. Above, two ol the nearly 300 employees insoect stones at the new $30 million facilitv.

GP Dedicates Low Energy Home

Georgia-Pacific and the U.S. Department of Energy have dedicated an energy efficient house a few blocks from the boyhood home of Dr. Martin Luther King, Jr., in Atlanta, Ga.

The "I Have a Dream House" is designed to use 577o less energy for heating and cooling than comparable area houses. Its design was based on "whole-house" systems engineering.

The walls were factory built with foam insulation sandwiched between layers of OSB. In addition, the walls, roof and floor use structural insulated panels. These changes tightened the building envelope, which allowed builders to downsize the heating and cooling equipment. Further energy efficiencies include low-E windows, tightly sealed duct work and a SEER l3 rated air conditioner.

The 1,565-sq. ft. home originally served as APA's "Behind the Walls" show home at the February 2001 Interna-tional Builders Show.

The house was recently sold to a family relocating from California. The new homeowner grew up in a house that originally stood on the "I Have a Dream House" site.

G-P'S DREAM HOUSE (Back, l-r): Jim Hackler. EarthOraft: David K. Garman, U.S. Dept. of Energy; Dennis Creech, Southface Energy Institute; Traycee Verdun, Bank oJ America; Bill Wachtler, SIPA; Tamara Nash, Georgia-Pacific senior mgr. of community programs; Bob Ramont, G-P director of marketing services; Pam Sessions, Greater Atlanta HBA; Mtamanika Youndblood, HDDC, and Steve Sandell, APA. Pictured in the front row (l-r) with their grandchild are new homeowners Delores and James Williams.

Barry Flood is now v.p.-sales at Rocky Top Wood Preservers, Rocky Mount, Va. He succeeds David Woody, who has left the company.

Aubra Anthony, Jr., has been elected president and c.e.o. of Anthony Forest Products, El Dorado, Ar. He succeeds John Lee Anthony (see p. 32), who passed away Oct. 5. Russ D. Anthony has been elected executive v.p. New directors include: John L. Anthony Jr.; Lynda J. Anthony, v.p. for human resources, safety & environment; Mike Giles, v.p. of sales; Kerlin Drake, v.p. of marketing, and Roger Landes, secretary and legal counsel.

Paul Alford has retired and sold his interest in Affordable Ace Hardware, Maynardville, Tn., to partner Darrell Snapp.

Dewey Evans, Dixie Plywood, Savannah, Ga., has transferred to West Palm Beach, Fl., as branch mgr.

David Newcombe has rejoined Causeway Lumber Co., Fort Lauderdale, Fl., as c.o.o. He was formerly with the company as its c.f.o. Rob Callahan is the new human resources director and Ernest Rinaldi is the new steel dept. mgr.

Ralph Del Valle, ex-Robbins Manufacturing and Builders 1st Choice, has joined the marketing and sales staff at Rt.4l Mfg., Spring Hill, Fl.

Patrick and Susan Pellet are now managing Twin Rivers Supply, Big Sandy, Tn.

John Peeler has joined ECMD, North Wilkesboro, N.C., as quality management coordinator.

Mark Ward has rejoined Moores Building Supply, Knoxville, Tn., as inside sales coordinator.

Alan Moody is the new sales mgr. at Weyerhaeuser's Suwanee, Ga., customer service center. Dennis Lentz has been named branch mgr. in Memphis, Tn. Fred Probst is now area general mgr. for the Oklahoma City, Ok., region. At Federal Way, Wa., Hq., Richard J. Taggart has been promoted to v.p.-finance; Jeffery W. Nitta succeeds him as v.p. and treasurer, and Kathryn McAuley is now v.p.-investor relations.

Greg Trail has transferred to Idaho Timber Corp.'s Fort Worth, Tx., branch as gen. mgr. Norm Renaud is new to sales. Glen Ross and Kirk Rentschler have joined sales in Lake City, Fl.

Mike Reid, ex-Georgia Pacific, has joined McKinney Lumber, Sheffield, Al., as sales mgr. for non-traditional products.

Kevin Rupert is new to sales at Vaughn Lumber Co., Knoxville, Tn.

Catherine Meyer is now mgr. of MidState Building Supply, Murfreesboro, Tn., according to Mark Thessin, who acquired the business in April.

Tom Lakeman, ex-Professional Forest Products, is now mgr. of Kent Logistics, Statesville, N.C., a new reload opened by Kent Lumber Co.

Charles O'Brien is the new mgr. at Harbin Lumber Co., Athens, Ga.

F. David Peters, ex-Georiga Pacific, has joined Great Southern Wood Preserving, Abbeville, Al., as general mgr. in Conyers, Ga. He succeeds Bob Worfel, who has transferred to Abbeville after 14 years in Conyers.

Billy Reed, ex-Birmingham International and McKinney Lumber, has joined the brokerage division sales staff of Stringfellow Lumber Co., Birmingham, Al. Eddie White, Bay Springs, Ms., is now repping exclusively for Stringfellow's brokerage division.

Curtis Haugen, ex-Intemational Paper, is new to sales at Gilman Building Products Co.. Yulee. Fl.

Al Jewel is the new mgr. of Wickes Lumber, Jackson, Tn.

Eric Jones has been promoted to co-mgr. at 84 Lumber, Falling Creek, Va. New mgr trainees include Jason Crane, Culpeper, Va.; Keith Taylor, Lynchburg, Va., and John King, Monroe, Ga.

Jim Stuckey is new to Diversified Wood Products' Daphne, Al., import/export office. Tawana Parker transferred to the same office.

Tracy McFaddin is the new store mgr. at Lowe's, North Knoxville, Tn. Tonette Powers is paint dept. mgr. at the new Port Arthur. Tx.. location.

Beth Bryant has transferred to Home Depot, Memphis, Tn., as store mgr. Michael Cain has been promoted to mgr. of the store's pro sales dept. Kristy Doyle has transferred to Madison, Tn., as store mgr.

Scott Hoover is now Southeast product specialist for Pilkington North America.

Kevin Kaulfus has been appointed regional mgr. for Wilsonart, Houston, Tx.

Eric Barnes has been promoted to general mgr. of distribution at Interior Products, Brunswick, Ga. John Hamacher is the new store fixture division sales mgr., Michele "Missy" Perkins is new to sales and customer support for the eastern region at the Louisville, Ky., office, and v.p. of engineering and manufacturing Tom Phillips is now overseeing OEM accounts in addition to his regular duties.

Debbie L. Cohen is the new c.e.o. at the Forest Stewardshio Council.

Jim Rothe has joined TALPX as national sales director-enterprise solutions.

Gary Christiansen has joined Adams Lumber as a trader.

Jimmy Alexander has been named v.p. of human resources for Ace Hardware Corp.

Edward Bilger has been appointed mgr. of engineering for the construction and distribution division of Bostik Findley.

Clyde Sutton, Sr., 74, accepted the Minority Retail Firm of the Year Award from the Atlanta Minority Business Development Center for his business, Sutton's Ace Hardware, Atlanta, Ga.

Sue Yablind is the new legal advisor to Hugh Mungus and Freddy Fungus, owners of Mungus-Fungus Forest Products. Climax. Nv.

Door Exporter Expands

Luvrpol, a Spanish exporter of interior and exterior doors, recently expanded its sales office in Miami, Fl., hoping to expand further into the U.S. U.S. sales rep Carlos Ramos said his company has been exporting to the U.S. for the last nine years, but feels now is the time for greater growth.

Luvpor- specializes in red oak and sapele-mahogany and has I million sq. ft. of indoor production facilities along with 14,300 sq. ft. of drying operations. Current production capacity is 29,000 doors per month.

The European facilities are fully integrated with ISO 9001 and ISO 9002, feature just-in-time production systems and have the green seal of the FSC, plus ISO 14001 certification.

Hard-To-Treat Decking OK'ed

A proposed decking standard that allows diminished treatment of thin sapwood species was approved by the American Wood-Preservers' Association's T-2 (Lumber & Timber) subcommittee meeting.

If finalized, the standard would permit difficult-to-treat species to be treated with reduced penetration and lower assay zone requirements, and no incising restrictions. According to the Southern Forest Products Association, "This so-called 'shell' or 'envelope' treatment raises numerous concerns regarding the serious risk of premature wood failures, inappropriate applications, and the subsequent loss of consumer confidence in all treated products."

The proposed standard is now eligible for the next level of approval within the AWPA voting procedures.

Texas Dealer Doubles In Size

Lampasas Builders Mart, Lampasas, Tx., has reopened their newly expanded hardware store and lumberyard.

The new facility stands next to the old 1930s-era building that was leveled to make room for a 25,000-sq. ft. parking lot.

The $500,000 expansion brings the size of the new hardware showroom to 10,000 sq. ft., more than doubling the size of the former space.

In addition, Builders Mart will be joining the Ace Hardware franchise to "upgrade the way we do business," reports gen. mgr. Roland Schaub.

Owner Charlie Brown expects the new store to have almost double the old store's capacity with the addition of the lawn and garden and housewares departments.

Schaub also expects to add two full-time employees this fall. They will join a current staff of 14 full-time and three part-time workers.

Willamette Upgrades Sawmill

Willamette Industries has completed an upgrade of its Dodson, La., sawmill.

The major focus of the upgrade was the installation of a Optimil band mill for primary breakdown, coupled with Perceptron scanning and optimization technology aimed at fiber recovery and use.

Mgr. David West noted that the additions are centered on responding to changes in the marketplace. "We're able to plug in data we get from sales, and then let the Perceptron equipment look at the log we're inputting and calculate how the best value can be achieved from them," he said.

The mill, last updated in 1993, is currently running l0-hour shifts, producing an estimated 36,000 bd. ft. of lumber per day.

U.S. Plastic To Close 3 Plants

U.S. Plastic Lumber Corp., Boca Raton, Fl., is expected to close three manufacturing plants by the end of the year.

Along with plants in California and Maryland, the company will close its Trenton, Tn., location.

Operations from the closed facilities are expected to be switched to existing plants in Chicago and Ocala, Fl. The company is seeking ISO 9000 certification for both facilities.

"We will reduce our fixed and overhead costs by manufacturing the same volume of products from three fewer plants," said c.e.o. Mark S. Alsentzer.

The move, along with the closure of two resin processing plants, will eliminate 140 jobs and save the company about $5 million annually.

L-P Braces For Recession

Louisiana-Pacific has decided upon a variety of measures to cut costs by $30 million annually as the U.S. slides toward a recession.

The actions will include facility closures, wage freezes, selling of some assets, exiting the pulp business and job cuts. There are already plans to eliminate 160 mid-to-high level corporate jobs by the end of the year.

Chairman and c.e.o Mark Suwyn said, "These actions are absolutely essential given the uncertainties of the building products markets."

Asked if any specific plants had been earmarked for closure, spokesperson Kelly Stoner said, "No decision has been made yet. We are currently evaluating all our operations."

The current reductions are in addition to the 20Vo reduction L-P has already made over the last l8 months.

Flooring Mill Gets Second Life

Lumber Liquidators, Colonial Heights, Va., recently reopened a Lynchburg, Va., house and truck flooring mill.

Flooring firm Burruss' Lynchburg mill closed in Oct. 2000, laying off 300 workers. Lumber Liquidators originally bought the mill during ensuing bankruptcy proceedings.

The company has now begun manufacturing house flooring that it plans to sell under its Mill Direct brand. The truck flooring division is scheduled to reopen next year.

Former Bumrss mgr. Fred Burton and his wife, Linda, manage the new on-site Lumber Liquidators store.

Riding Out Big-Box Invasions

They are the big-box retailers. Formidable in starure, expansive in scope, surrounded by football field-size parking lots, often anchored to popular shopping plazas, and increasingly populated with frenzied d-i-yers pushing carriages overflowing with building materials.

If you're a lumber and building products retailer, and these images have kept you up too many nights, then Long Beach, Ca.-based small business consultant Bob Phibbs has some hope for you.

"Chain stores are continuing to dominate the scene," he said. "But more people, at the same time, are willing to give the independents a chance."

Phibbs, author of You Can Compete!, a book designed to manage small business concerns in the face of chain store proliferation, has helped more than 100 small businesses come up with competitive new strategies.

He emphasizes that small retailers have an upperhand because they can react quicker to the economy and stress customer service and product knowledge.

"The independents' advantage is that people want to try them as long as they get treated better than at the chain stores. Unfortunately, (small businesses) are taking the motto of big chains, which is shoving a lot of merchandise in a store and assuming it will sell," Phibbs said.

The recent success of small, independent stores in pedestrian-friendly areas like Pasadena and Belmont Shores, Ca., has attracted the attention of the big box executives and, according to Phibbs, there are three important points to protecting yourself.

The store's physical appearance is primary. "The most valuable part of the store is the first third, that's as far as most people go into a store," he said. "You need to have the best, brightest and newest merchandise out there in front."

The second line of defense is seeing employees as your most important asset. "For any and every business, the number one problem right now is personnel, " he stressed. "You want people to talk about the product and develop a relationship, and instead you get people who are impatient behind the counters." Phibbs recommended that employers institute a system of rewards for employees who demonstrate excellent customer service skills.

Finally, Hibbs said that if the first two sreps are followed, a retailer can then begin with a competitive marketing strategy. "The myth of marketing is that if you bring enough bodies in, it will work. But the problem is people aren't coming back," Phibbs noted. "You don't want to bring more bodies into a place if they're not going to get great service, because marketing is a matter of steps to remind people of the good time they had with you."

Phibbs said mailing lists and handouts with catchy phrases have a more far reaching effect than coupons or guaranteed price matches.

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