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WOOD DECKING SURGE NEW IN ALTERNATIVE DECKS EWP, MILLWORK & MORE
Building Products Digest
FEBRUARY 2010
INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS
NatureWood ® ACQ Wood Preservative Technology Receives NAHB Research Center National Green Building Certification
Green Approved products can be used by builders to earn points toward National Green Building Certification to the National Green Building Standard. Approval is measured based on the National Green Building Standard, which is the best existing standard for green and sustainable residential projects. Wood products treated with NatureWood ACQ preservatives can be used in above ground, ground contact, fresh water immersion, and critical structure end uses. Visit www.osmosewood.com for more information about NatureWood and Osmose® preserved wood products. Visit www.GreenApprovedProducts.com for details.
NatureWood products are treated with Alkaline Copper Quaternary Compounds. NatureWood products are produced by independently owned and operated wood preserving facilities. NatureWood® & Osmose® are registered trademarks of Osmose, Inc. ©1/2010
www.osmosewood.com
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Sugar and Ponderosa Pine, Douglas Fir, Redwood, Western Red and California Incense Cedar Hardwood Lumber & Plywood Chino, CA 91710 •
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Building Products Digest February 2010
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(909) 591-4811 • FAX (909) 591-4818 Building-Products.com
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By Alan Oakes
Don’t neglect those left behind
RECENT REPORT SUGGESTED that 55% of workers are unhappy with their current job. Personally, I suspect that 55% would be even more unhappy without a job. That being said, the events of the last two years—restructurings, consolidations, closings, salary and promotion freezes, benefit cuts—have not been met kindly. Indeed, when the Christmas party gets cut, well… Running a company has been far from easy these past few years. As an owner, you carry the burden of how you are going to meet the next payroll. It can be hard to share that information without sending alarm bells around the company, let alone to your customers and competitors. While we may not be able to sleep at nights, and others can’t understand why such cuts have been made, the fact is that to protect the many, you might be required to do things you find abhorrent, just to survive. There is no good time to let people go, but have some compassion. I witnessed one company hand out pink slips the week before Christmas. Help those affected financially and emotionally to deal with it, so those left behind can see that you care. You may have already taken tough steps. More may be required before conditions improve. Yet how do you motivate those that are left and provide comfort? Well, if you have to make a tough decision, take action quickly and decisively. Don’t let a cloud of doom hang over the company. It is better to lay off a few more people than hope for the best and then go back to the well a few weeks or months later. Let the pain be felt once, not two or three times. Make changes in one go, not in dribs and drabs, unsettling everyone in the company. It may be tough on the 20% who are affected—but better 80% feel okay than 20%. You want your remaining employees focused on how they are going to get the company growing, not worrying when the next shoe is going to drop. I saw a headline today about the disposable worker. That’s just the type of thinking that has led 55% to reconsider whom they work for. I know I did for five years before going out on my own. I understand big business, but what I have never accepted in my career is a lack of empathy for my employees. Everyone is not dispensable! A callous attitude by management causes employees to question their loyalty to the company. I believe it is how you as managers handle this situation that will determine how you come out of the recession. People have long memories and will remember how they were treated during this crisis. If you do not manage with compassion now, when times get better and new jobs start, your staff will be off at the first opportunity. So what do you do for those left behind when there is not much to give financially? Many managers working through these difficult times feel that their hands are tied, especially when salary increases are frozen and budgets are cut. But saying “thank you” costs nothing. “Thanks for being on my team. I value your contribution under very difficult circumstances.” How many times do we hear that? Do not hide behind blanket emails; those only lead to the worst being painted into every word. Face to face you can say what is real and not real, and paint a more truthful and optimistic picture. You can show the way to better times. Webcasts and email are not personal, and there has never been a more important time to be personal. Take an interest in your employees as individuals. If they feel anonymous in the organization, they will dread coming to work. Another way is to help every employee understand why their job is important and to whom. Give reasons—whether they be in customer service, accounts payable, or the yard. That 55% will never be happy unless we find a way to take an interest in them and what they do, as human beings. If we don’t, we are not only committing them to a miserable time at work, but also committing our companies to employees who are not working at their best.
Alan Oakes, Publisher ajoakes@aol.com
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Building Products Digest February 2010
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Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Editor David Koenig dkoenig@building-products.com Associate Editor Karen Debats kdebats@building-products.com Contributing Editors Carla Waldemar, James Olsen, Jay Tompt Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com
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A Sign of Quality forYears to Come. Great Southern Wood has been around for forty years now. And in that time, we’ve become the largest producer of pressure treated pine in the country – while consumers have made our product their brand of choice for outdoor building. Folks know YellaWood® brand pressure treated pine stands for quality and that it provides the best long-term protection against rot, fungal decay and termite attack. They also like its lighter, more natural appearance which makes it easier to paint or stain. Yes, quality is what we’re all about at Great Southern. It’s found not only in our products, but also in the way we treat our customers. That’s what’s going to take us into the future. You see, to us, customer satisfaction is the only true path to success. If we’ve learned anything over the years, it’s that.
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YellaWood® brand pressure treated products are treated with micronized copper azole using the MicroPro® copper preservative process. Ask dealer for warranty details. Great Southern Wood Preserving, Incorporated, its affiliates, subsidiaries and TSO providers, use Osmose, Inc. wood preserving products, methods, systems and technology in the treatment of YellaWood® brand products. For more information visit www.osmosewood.com. For important handling and other information concerning our products or for a copy of the YellaWood® brand Material Safety Data Sheet (MSDS), please visit us at www.greatsouthernwood.com or write us at P.O. Box 610, Abbeville, AL 36310. YellaWood®, and the yellow tag are federally registered trademarks of Great Southern Wood Preserving, Incorporated. The Great Southern Wood Preserving, Incorporated logo is a trademark of Great Southern Wood Preserving, Incorporated. MicroPro® is a federally registered trademark of Osmose, Inc. The MicroPro® Wood Treatment Process is certified under SCS’s Environmentally Preferable Product (EPP) program based on Life-Cycle Assessment. The NAHB Research Center Green Approved mark is your assurance that a product is eligible for points toward National Green Building Certification.
SWEEPSTAKES: NO PURCHASE NECESSARY. Void where prohibited. Must be a legal resident of AL, AR, FL, GA, IL, KS, KY, LA, MS, MO, NC, OK, SC, TN, or TX and 21 years of age or older to enter or win. Sweepstakes begins at 12:00:01 AM Eastern Time (“ET”) on February 1, 2010 and ends at 11:59:59 PM Eastern Time (“ET”) on March 28, 2010. The approximate retail value of all prizes available to be won is $77,623.25. The odds of winning a prize will depend on the total number of entries received and the time your entry was received. Sponsored by Great Southern Wood Preserving, Incorporated. Each of Great Southern Wood Preserving, Incorporated’s and Brandmovers, Inc.’s respective parents, affiliated companies sponsors, subsidiaries, dealers, distributors, wholesalers and retailers, advertising and promotion agencies, third party fulfillment agencies, and third party prize or prize component providers and the employees of these respective entities and their immediate families (as described in the Official Rules) are not eligible to enter or win the Promotion. Sweepstakes subject to Official Rules which can be obtained at www.yellawoodsweepstakes.com.
Send your customers to YellaWood.com to register in the YellaWood Backyard Bonanza Sweepstakes for their chance to win some great outdoor merchandise! ®
FEATURE Story
Back to Basics T
The resurgence of real wood decking
HE TROUBLED ECONOMY has driven down the North American residential decking and railing market 40%, from $4.6 billion in 2006 to $2.8 billion in 2009, according to a new Principia Partners study. The most noticeable trend during the three-year slide has been wood decking regaining lost market share from synthetics, apparently driven by demand elasticity due to lumber deflation, while petroleum-based synthetics have experienced significant raw material price escalation.
“Lumber prices are at all-time lows, and the gap between the cost of pressure treated lumber and composites is the highest it’s ever been,” notes Dick Gauthier, Universal Forest Products. Wood decking and railing have steadily lost market share to synthetics since the introduction of composites more than 20 years ago, based on performance and maintenance benefits. Wood’s market share hit a low in 2007, maintained its position in 2008, and reversed in 2009.
WOOD DECKING is regaining market share from synthetics, thanks to the affordability of pressure treated wood and the improved aesthetics and performances of high-end products, such as DreamDex polymer-and-heat-treated radiata pine boards (above) and tropical hardwoods.
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Building Products Digest February 2010
Wood decking, says Allweather Wood’s Rick Danielson, “is competitively priced, and consumers are more price conscious. Typical retail for treated wood decking is $1.00 to $1.10 per lineal foot. Non-wood products are about $1.65 and up. Also, the higher the price, the greater the customers’ expectations.” McFarland Cascade’s Greg Phillips agrees that the “resurgence of treated wood decking sales as a percentage of decking surface sales is directly connected to the low-priced lumber market. In this tough economy, people still want to enjoy outdoor living, so they are turning to more economical solutions. As the economy improves, we suspect maintenance issues will likely overcome the initial cost advantage of pressure treated lumber, though wood will always be a big part of deck surface sales.” Product failures by composites haven’t helped. “We have noticed a slight change towards wood decking or forms of wood decking,” says Northern California dealer Rick Zaslove. “With the class action claims and composites not performing as expected, Golden State Lumber and Sierra Point Lumber have noticed some of our customers looking for real wood decking that perform well to many weather conditions. Hardwood decking like ipé and Clear and Deck Heart redwood decking products seem to fit this need best. [Composite manufacturers] have made some major changes in their product lines, and we will continue to support their efforts.” In addition, “the new ‘heat treated’ Building-Products.com
wood decking products are making some headway,” says dealer Gene McKinney, Tindells’, Knoxville, Tn. “They are real wood, stronger, stiffer, less expensive, and install like any other wood deck. We stock and sell this product and are having some success.” Next generation preservatives are also giving a boost to good, old pressure treated wood decking. “The quality demands of the big boxes regarding pressure treated lumber are also the highest they’ve ever been,” offers UFPI’s Gauthier. “So it’s harder to disparage pressure treated since the quality is pretty good today.” Dennis McWhirter, Exterior Wood, Washougal, Wa., agrees wood decking has never been better. “With the advancement and durability of today’s stains and sealers, consumers are moving back to the tried and true wood products: cedar and treated decking,” McWhirter says. “We are seeing renewed interest in the use of tropical hardwood for decking, as well. These products are being used in both commercial and residential applications, where the consumer is looking for something that makes a statement. Although there is slightly more maintenance with this product, the wow factor is well worth it.” Although the synthetic decking category as a whole has lost share to wood, demand for cellular vinyl decking has been growing at a double-digit rate, due to the growing popularity of ultra-low maintenance decks among homeowners. “The market has two primary forces at work,” says Principia’s Steve Van Kouteren. “On one end of the decking market, consumers are fighting money and budget issues and are scaling back deck projects, as well as using less expensive materials. Conversely, there is a high end of the market that is less price-sensitive. This segment is using new synthetic materials, and is driving the increase in demand for cellular vinyl.” Cellular vinyl demand growth is at the expense of polyolefin-based wood-plastic composite (WPC) decking. “Composite decking is losing market share to wood on the low end and losing market share to cellular PVC on the high end,” Van Kouteren says. “Total value for WPCs and cellular vinyl is estimated at about $725 million, or 26% of the decking and railing market in 2009. Total North American demand for cellular vinyl in Building-Products.com
residential decking grew from about $5 million in 2004 to over $95 million in 2009.” About 2.5 million decks were built on residential structures in 2009, and over 90% are on existing homes as part of a remodeling project or replacement (R&R) of an existing deck. Job losses, tight credit, devalued homes, the inability to tap into home equity to finance home improvement projects, and record lows in consumer confidence combined to push decking and railing demand back to levels unseen since the early 2000s. The future is brighter for decking and railing, as homeowner desire for
TRIM
FASCIA
quality leisure time and outdoor living in the backyard or front porch of the home is part of the fabric of American living. An increase in housing starts and modest growth in R&R activity should increase the demand for decking and railing, on a value basis, about 10% in 2010 from its bottom in 2009. About 6% of the growth will result from volume growth and another 4% from product mix and a slight recovery in wood prices. Pent-up demand from consumers will help support decking and railing growth in 2010. Total decking and railing demand is expected to increase from $2.8 billion in 2009 to $3.1 billion in 2010.
SIDING
NATURE’S DESIGN TECHNOLOGY’S A SSURANCE www.lifespanoutdoor.com
Based in Annapolis, MD, Fletcher Wood Solutions® is the largest manufacturer of defect-free, appearance grade radiata pine products in New Zealand. Distributing our clear boards, mouldings, LIFESPAN® treated wood, and lumber to the North American market through our proven and completely integrated supply chain, Fletcher Wood Solutions® maintains direct access to one of the largest FSC certified® pine plantation forests in the world.
1.866.FSC .WO O D February 2010 Building Products Digest
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PRODUCT Spotlight Composite Decking
Composite decking
Photo of GeoDeck’s color options
What’s new, what’s next
C
OMPOSITES REFUSE TO SIT QUIETLY as high-performance cellular PVC products bite into their share of the alternative decking market. This winter, composite decking manufacturers are adding new products and tweaking existing ones to better compete.
AERT (Advanced Environmental Recycling Technologies) recently rolled out a fire-rated version of its
composite decking. MoistureShield FR has been approved by the California Department of Forestry & Fire Protection and is listed as an approved product in the recently published Wildland-Urban Interface Products Handbook. “For builders and homeowners in parts of the country where wild-fire season is a real threat and building codes require fire-rated materials, we saw a need for an attractive, eco-friendly and fire-resistant decking product that can meet code,” says Brent Gwatney, v.p. of sales and marketing for MoistureShield. “The introduction of firerated products, a growing number of color options and accessories, a solid reversible profile, and grooved boards for hidden fastening systems, are all trends we’re seeing in the composite decking market and ones that we’ve specifically developed products for.”
Fiberon has improved its Deck Pilot hidden fastener, to improve performance and reduce installation time. The redesigned fastener is injection-molded with 30% glass-filled nylon, making it sturdier, and double-sided to reduce installation time. Other features include:
• new 3/16" replaceable steel pins for accurate spacing and quicker installation;
PRECISE, fast and inexpensive, Fiberon’s new Deck Pilot allows contractors to install deck screws at the proper angle and precise depth— every time. The kit includes two bits and uses 1-5/8" steel coated, corrosion-resistant trim head screws.
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Building Products Digest February 2010
• tough, hardened bushings made from hexstock steel, making it impossible to spin; • arched base to keep tool flat, and
• adaptability—the tool can be cut in half without losing Building-Products.com
its strength to make two short tools for restricted areas and special patterns.
GeoDeck producer Green Bay Decking has expanded the color options for its composite decking to include walnut, a deep, rich shade of brown. “Our new walnut color is something we’ve produced for years on a custom basis,” shares president Lanny Jass. “As consumer preferences have changed in the past two years, we decided to make it part of our standard product line. Our manufacturing process allows us to produce short runs of different colors very efficiently, so we plan to continue to offer new colors to the market—either as part of our product line or as a custom color to specific customers. Our patented material formulation also provides us with confidence that all of the colors we produce will have the same superior color retention.”
TimberTech is attacking the price differential. The company just launched ReliaBoard, described as “one of the most economical composite decking boards on the market.” Yet the product is also said to offer all the same benefits of TimberTech’s other decking products, including a full 5.4" wide plank surface, great looks, and a transferable 25-year limited residential warranty. “ReliaBoard is a great alternative to wood for valueconscious homeowners,” says Carey Walley, director of marketing of TimberTech. “Money and time spent each year painting, staining or sealing can become a one-time investment in low-maintenance decking for a great price. This new product positions TimberTech as a onestop-shop for customers looking for anything from traditional composite decking to ultra-low maintenance PVC decking, with best-in-class railing and lighting to match—a complete solution from one manufacturer.”
Trex is rolling out a raft of products, including new board profiles and hidden fasteners that are compatible even with competitors’ boards. “Contractors indicated that the industry needed a universal fastening system,” says Adam Zambanini, senior product manager of decking. “The Universal Hidden Fastener can be used with both Trex and competitor decking. Now contractors need only to purchase one fastener system for all of their jobs, increasing efficiency and reducing costs.” In addition, all Trex decking will now measure 1" wide, providing greater design flexibility to mix and match all lines, making all lines compatible with the Universal Hidden Fastener, and increasing convenience and efficiency for distributors and dealers. Trex, too, will be the first decking manufacturer to offer reduced-size product bundles—transitioning from a bundle size of 96 pieces per unit to 48 pieces per unit, increasing turns. Distributors will benefit from efficiencies in material handling and reduced in-transit material handling damage, while dealers will be able to stock more product without increasing their inventory position. “We believe the reduced packs will provide greater bundling opportunities for our distributors and dealers, allowing them to move more product in less time while increasing productivity and profitability,” notes Adam Building-Products.com
Zambanini, senior product manager of decking. The Contours line is also converting to a square-edged profile and a grooved edge profile, as opposed to its former scalloped underside. The updated boards currently are available at both Trex manufacturing plants, in Winchester, Va., and Fernley, Nv. And, a new, higher-performance decking and railing system begins shipping this month, expressly designed to compete with PVC. Trex Transcend combines a finish that resists stains, scratches and mold with a natural-looking wood grain pattern. Its protective shell defends against fading, while being extremely low maintenance. Spills wash off easily with soap and water. President and c.e.o. Ron Kaplan calls the new line “a game-changing product that quite simply exceeds all other materials currently in the marketplace. Since inventing the concept of durable and low-maintenance outdoor living products nearly 20 years ago, we’ve consistently introduced design and manufacturing innovations that have secured Trex’s position as the preferred brand among both consumers and professionals. With Transcend, we’re combining all of the benefits of our existing collections with proprietary new technologies that offer unparalleled durability, wear-resistance and long-lasting good looks.”
ALTERNATIVE TO THE ALTERNATIVE: Designed to compete with cellular PVC, new Trex Transcend composite decking and railing features a proprietary surface formulation for natural wood-like grain and a lustrous finish. February 2010 Building Products Digest
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INDUSTRY Trends By Diana Hanson
Stay up on building codes to keep deck sales rolling
A
S A DECKING DEALER or distributor, you are dependent on manufacturers to not only produce products that are up to standard, but also products that are acceptable to the consumer. The manufacturers have a lot on their plate when they bring something to market. You as the dealer take a calculated risk every time you make a purchase. The decking materials you stock are affected by decisions made in the building code arena. Every few years a new version of building code is issued. Building code is developed in cycles that provide a platform for anyone to submit changes to the code. In attendance at hearings are building officials, members of industry, engineers, university professors, government officials, members of coalitions, and consumers. That’s a lot of people with a lot of different concerns—and sometimes agendas—all pushing for changes to the code. It is important to make certain that the products you are purchasing for resale not only meet the testing requirements in place in the industry, but also that building code is not changing in a direction that makes the product difficult to sell. Until recent years, the decking industry was given only
SALES OF big-ticket deck packages may decrease if overly restrictive building codes convince consumers and contractors into pouring a simple concrete patio instead.
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Building Products Digest February 2010
cursory attention in the code. Largely due to the fact that decks are exterior structures and often separate from the house, they were not considered to be within the purview of the code. That perspective has now changed, and there have been many changes that affect decks entered into building code. Coverage of decks in building code is far from complete; however, there are already sections of code that are difficult to interpret and enforce on the job site. As a dealer, you trust your supplier to be vigilant and watchful of code development. Some manufacturers may think that because they submit their products for testing through the ICC-ES or another evaluation service, they have done what is necessary to protect the salability of their product. This is simply not true. Building code operates separately from evaluation protocols and testing. The manufacturer may do everything right as far as going through the process and spending their budget on evaluation; yet they can get blown out of the water by a code change that makes their previous testing inadequate. How active in code development are your suppliers? Are they protecting their and your interests in the building code arena? Simply stated, what affects one member of our industry affects us all. The more we work together, the more likely we will be able to protect our industry, while at the same time provide a safe, enjoyable home improvement option that the consumer desires. Specifically relating to decks and railings, dealers must be aware of the direction that code has taken toward more restrictive regulations. Even if you are a distributor of decking boards, and the code change has to do with ledger attachments, you will still want to be informed, as it affects the completed structure (the deck). If building code for decks becomes overly restrictive, consumers may very well choose to build something less difficult to get a permit for. They may put in a patio or rock instead of a deck. Check with the code representatives of your suppliers and find out what is going on that might affect your sales. You can also do some research yourself using the International Code Committee website, www.iccsafe.org. – Diana Hanson is co-owner and operater of deck contractor Woodpile Construction, Meridian, Id., and Woodpile Products, maker of Deckit deck spacers. She is active in the North American Deck & Railing Association and frequently writes for industry publications. Contact her at diana.hanson@gmail.com. Building-Products.com
Wood that looks better and lasts longer. Viance is a pioneer in wood preservation technology, offering a full line of AWPA standardized, treated wood solutions engineered for high performance and environmental sustainability. By providing tough, long-lasting protection against the elements — whether it’s water, decay termites, or fire — Viance enables builders to work with creativity and a healthy peace of mind.
Ecolife™ Stabilized Weather-Resistant Wood is AWPA standardized for above ground applications and is listed as a Green Approved Product by the NAHB Research Center, allowing you to build creatively and responsibly with the natural beauty of real wood. Ecolife’s advanced built-in weathering protection and stabilizing properties dramatically reduce cracking, warping and splitting for enhanced beauty and fewer callbacks.
Preserve® ACQ® is an AWPA standardized soluble copper wood preservative for above ground and ground contact that provides longterm protection from decay and termites for a wide variety of residential, commercial and industrial applications. Backed by more than 20 years of severe weather testing, Preserve® remains a proven performance choice for treated lumber used in decking, fencing and outdoor projects
For more information on these and the full line of Viance treated wood products, call 800-421-8661 or visit
PLATINUM SPONSOR
COMPETITIVE Intelligence By Carla Waldemar
All the way to the bank
W
HAT ’ S A BEAN COUNTER
doing running a building supply company? Multiplying revenue, for starters, from $12 million in 1998 to $65 million in 2002. That’s an enviable bottom line, but a CPA degree is just one factor in Ovi Vento’s big-picture road to success. Everglades Lumber & Building Supply was launched, he says, as “a little, old-fashioned hardware store” in Florida in 1941, back when that little pocket of real estate bordered the park’s wilderness. Over the years, the city crept westward: “Today, we’re smack in the center of Miami, surrounded by millions of houses,” he says. Not bad. The backstory: Ovi’s family arrived from Cuba via Puerto Rico in 1972 in search of a business to sustain them, and this ma-and-pa outpost was on the market. As his father saw the need and grew some capital, he positioned himself to feed his family on ever-bigger slices of the buildingtrade pie by increasing acreage (10 today), launching rebar and millwork manufacturing operations, and more. Meanwhile, Ovi used that accounting degree with a big corporation until called back to join the family firm in 1984. He stayed on when Everglades got an acquisition offer it couldn’t refuse, and when that parent group put the operation on the market once more in 2002, he stepped forward as a buyer: “This is what I want to be doing,” he vividly recalls the Eureka moment. And the rest isn’t just history, as the saying goes. It was merely the beginning of yet-more substantial expansion, but, even more important,
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EVERGLADES chief Ovi Vento preaches the importance of building relationships to build a business.
a significant philosophical shift that’s continued to grow the company, even in these tenuous times. Almost immediately, he cleared out 10% the store to incorporate a design showroom (and opened a second showroom in the Boca Raton location the following year). “It was something I’d always wanted, as I started to learn the business—to cater to designers. Instead of showing five hammers, for instance, I cut back to two to gain room for our higher-end products. But early on, I knew it wasn’t reaching the right targets. Customers, who would discover it by accident, would later tell me, ‘I had not idea…!’ So, two years ago, to
Building Products Digest February 2010
reach the high-end market we needed, I bought the freestanding building next door”—12,000 sq. ft.—and fleshed it out with luxury hardware, plumbing, doors, cabinets, closet and laundry amenities, and the list goes on. It debuted in 2009. Remind me, again, Ovi: Who’s buying those fancy items in the midst of the worst recession many of us have ever seen? What were you thinking? Just this: “I knew the economy was shifting, but here’s the deal: The highend is good in good times. And”—the clincher—“it stays strong in tough times, too. So I decided, despite the economy, to go ahead and do it, and do it right—state of the art.” And to give away the ending, yes, it’s working fine. Here’s why: “We’re in a very strategic location, so people could notice the activity as they drove by, could see the progress, and wonder, ‘What the heck…?’ Then, we didn’t hold our grand opening until four months later [buying time to iron out any glitches], when we rolled out the red carpet for a who’s-who list of the architect community, designers, high-end contractors, bankers, celebrities, and government officials. We partnered with a car dealer to park his luxury models in front and drive business for both of us. “Word-of-mouth was outstanding; we had 600 attendees, and we made everybody feel comfortable. We took care of them, showing them there was more than great products, there was follow-through. People left saying, ‘What a pleasure!’ whether they’d spent $10 or $1,000, and that was the best part for me: I concentrated not so Building-Products.com
much on good revenue as on good traffic. We created a great environment, showing that we’re here to help, to become part of their team (in contrast to other places where they use you and abuse you,” he laughs). Easier preached than done, as every owner knows. But Ovi (unlike most accountants, dare we say?) is a true people-person and walks the talk because he realizes his success rests with his staff. “I’m very hands-on. I live by the philosophy of empowering people. Here’s what I tell them: ‘Your job is to sit here, where I’m sitting…and I’ll help you get there.’ If there’s a problem, we find a positive solution. Customer service is foremost, so I teach them things like to return phone calls the same day. [True to his word, Ovi returned this reporter’s call the same afternoon— virtually the first ever to do so]. “I have an open-door policy (open book, too). I see everybody, and we’re all on the same level: no titles. Titles merely hide insecurities,” says the man who refuses to call himself c.e.o. “At our recent end-of-year sales meetings, I talked to them about the past year. Sure, the economy has affected us, but I stressed looking forward, a ‘time of renewal’. I shared my goals and dreams, and the response was awesome. Yet no one left more fired up than I.” (True, the company has been forced to reduce staff in 2009 and has curtailed overtime, which was “very challenging for me,” Ovi confesses. “It broke my heart.”) The outside sales force continues full-steam ahead. “We visit every jobsite in town and talk to everyone,” attests their leader, who directs them thus: “Your goal is to do for your customers whatever they need—things nobody else can, or will, do—even direct them to buy directly off the Internet if that’s the best idea: Do the right thing. And guess what? Because I also sell commodities—no competitive price differential there—who gets those orders? We do! And while others might require a builder to rent a crane to get the plywood where he needs it, we’ve purchased an expensive crane, and we’ll do it.” It’s about relationships, too, and that’s another of uber-gregarious Ovi’s fortés: “I keep a profile of the top 20% of our customers—get to know their families, their key people. We talk. And I cater to their needs: ‘We’ll take care of you,’ I tell them. Building-Products.com
FLORIDA DEALER recently opened a stand-alone design center in Miami, Fl., to fill the void left by the closure of Home Depot’s Expo Design Centers.
That’s our specialty, even if we’re a little high [in price]. I was never the cheapest, but I give the best service.” And that stands true across the board, for Everglades has a wide field of competitors, different in each of its operations, from rebar to millwork to high-end products; custom housing to commercial accounts to government contracts. The mix he’s achieved today is 65 pro/35 retail, “with 50/50 as the diversity I eventually want,” he professes. Wisely, he’s building Everglades’ growth on staying power. “Even in good times, we were never burdened with debt. I act very conservatively, never expanding too fast. We focus on our core strengths and our efficiencies. Remember,” he jokes, “I’m a CPA! A bean counter.” But he’s also Mr. Miami. “I like to get out and meet people. I’m preaching all the time,” Ovi laughs, “and I end up getting [orders for] the material. My goal is, every week to attract two new long-term customers. I believe that partnering is vital, which benefits all of us: general contractors, subs, government accounts. For them, I’ll even put on my lobbying hat,” he declares. “I like to learn what’s going on around town.” At the moment, it’s building a
new, big-deal stadium for the Marlins. “I got to meet their president—and I’m president of the Latin Builders Association,” he adds. “‘Look,’ I said, about the awarding of stadium contracts, ‘I have no problem with opportunities for others in our industry, but I need a commitment that the work stays in the community.’ And I got an agreement! I became the Hispanic spokesman, and I worked it hard: ‘All I want is a crack at the rebar….’” Result? “I brought the job here.” This community leader is also on the board of the Orange Bowl, local hospitals, the YMCA, and more. “I like to give back rather than spend money on advertising,” he explains. Give back, but not look back. Economically, “I believe we’ve turned the corner. South Florida is still slow, but the now attitude of people here has totally shifted. For 2010, I budgeted a 30% growth for the company. And, you know what?” Ovi exclaims. “We’re g o n n a make it happen!”
Carla Waldemar cwaldemar@comcast.net
February 2010 Building Products Digest
15
PRODUCT Spotlight Oriented Strand Lumber
Whatever happened to OSL?
A
S RECENTLY AS TWO YEARS AGO , oriented strand lumber was being touted as the hottest new product in engineered wood—one that would overtake lumber markets during the next 20 years the same way that similarly produced oriented strand board had dominated panel markets over the previous 20. At the time, Louisiana-Pacific was converting its OSB plant in Houlton, Me., to produce OSL. Tolko Industries was building a huge new facility in Athabasca, Alberta, Canada, to manufacture both OSL and OSB. Grant Forest Products was test-marketing OSL for use in molded upholstered furniture frames. Weyerhaeuser designed its 10-year-old OSB mill in Hudson Bay, Saskatchewan, with the flexibility to one day add OSL production lines. And, Ainsworth—which began producing OSL in 2003—was projecting that OSL would one day spread from use in rimboard to headers, beams, structural insulated panels, and even studs. Today, Ainsworth is the only North American company said to be producing OSL, marketing it in a single application, 0.8E Durastrand rimboard. So, what happened to OSL? Tolko was just bringing its Athabasca Division on line when the economic downturn forced mothballing of the plant in February 2009. Several months later, Grant declared bankruptcy and is selling its OSB mills to Georgia-Pacific. LP decided to convert Houlton to laminated strand lumber, a similar product to OSL. “The main difference between these two materials has to do with the way they are manufactured,� explained Melissa Warren, EWP product manager. “LSL is made with strips
of wood that are up to 13" long. OSL these days owes to an overall marketstrands are shorter than that—but still place that consumes much smaller vollonger than OSB flakes, which are umes of building materials in general, between 3" and 4". When we first linked to very poor housing starts— started the Houlton project, we hence, LSL and OSL production is thought we’d be producing shorter severely curtailed,â€? noted Robert strands, making it OSL. But then once Fouquet, v.p.-sales & marketing. “One we got all the equipment in place and would expect a return to better prostarted working on the ‘recipe,’ we duction rates when activity resumes.â€? could actually produce longer strands. Its 0.8E grade material, Fouquet There is an advantage of the longer said, “product is primarily used in rimstrands, making it a little stronger than board applications in California where an OSL. But we never went to market enhanced code requirements are in with an OSL, it’s always been an place relative to earthquakes. LSL.â€? Ainsworth continues to produce 0.8E Weyerhaeuser has likewise concendespite the downturn. Our team is trated on LSL. “At first blush, OSL committed to serving this marketplace looks similar to LSL, but the similariand delivering products to our trade ties end there,â€? said Weyco’s Greg partners, regardless of marketplace Wells. “The manufacturing process of conditions.â€? TimberStrand LSL involves steam Higher E-values are required for injection and pressure, which allows studs (about 1.3E to 1.5E), beams and heat to penetrate to the core providing headers (1.5E to 1.7E), glulam, and a solid, consistent bond of the adheLVL (1.7E to 2.0E). “Market price of ‡ ‡ sives. The strands to manufacture the product is indexed to E-value and, $URASTRAND 2IMBOARD AND 3TEADI4RED FROM !INSWORTH TimberStrand LSL are also about 12" of course, there is a correlation "UILDERS AND DEALERS ARE ½ NDING THAT SMART SUSTAINABLE BUILDING long. Weyerhaeuser has never manubetween E-value and manufacturing PRACTICES DELIVER REAL BOTTOM LINE BENE½ TS -ULTIPURPOSE PRODUCTS LIKE factured OSL.â€? cost,â€? Fouquet said. “The relationship % $URASTRAND /3, 2IMBOARD ARE MANUFACTURED FROM RENEWABLE Production of OSL continues at between E-value and cost is such that RESOURCES ° AND IN THE SIZES YOU NEED ° SO YOU CAN SAVE TIME AND LABOR Ainsworth, albeit at reduced levels. in the higher range of E-values, a typi“TheREDUCE WASTE AND DISPOSAL FEES AND MINIMIZE INVENTORY fact that OSL and LSL products cal OSL/LSL product line becomes are marketed in much lesser volumes somewhat uncompetitive with LVL product lines from a usage perspective. With LVL being widely available from a variety of suppliers and in large quantities, it has become the preferred choice for use in mid-to-longer span headers and beams.â€? In the long term, when market conditions warrant, Ainsworth plans to complete the expansion of its OSB facility at Grande Prairie, Alberta, adding a second manufacturing line OSL, currently produced by Ainsworth alone as that can produce OSB, OSL and LSL. Durastrand rimboard, uses the same size Be patient. More OSL products, in strands as OSB, as well as a similar manufacgreater quantities, are to come. turing process of heat and pressure.
3USTAINABLE CHOICES
YOU CAN BUILD ON
!TTENTION $EALERS
16
0RE FABRICATE STAIR SYSTEMS USING 3TEADI4RED STAIR TREADS Building Products Digest February 2010 AND $URASTRAND 2IMBOARD AS
-ULTIPURPOSE STRENGTH
7 % $URASTRAND /3, 2IMBOARD
AS RIM BOARD SHORT SPAN HEADERS AND STAIR STRINGERS
&OR STRONG CONSISTENT STAIR TREADS VERSUS PARTICLEBOARD SOLID SAWN
Building-Products.com GREATER SPAN CAPABILITY UP TO IN ALWAYS ž AT AND STRAIGHT SAVE ON
Sherwood Buys Bloch
Sherwood Lumber, Islandia, N.Y., acquired most of the assets of Bloch Lumber, Chicago, Il., at a December 29 foreclosure auction demanded by its lender. Renamed Bloch Lumber Acquisition LLC, the wholesaler will operate as a wholly owned subsidiary of Sherwood. “We have hired all of Bloch Lumber’s employees in their current locations,” said Donald Schneidman, chief financial officer at Sherwood. “We are in the process of working through the inventory purchased and determining what warehouses work and which do not. That determination will occur over the next several months.” Bloch, which was founded in 1959 by Ted C. Bloch, was headquartered in Chicago and had branch offices in Lebanon and Akron, Oh.; Ashland, Va.; Grimesland, N.C.; Fairply, S.C.; Denver and Silt, Co., and Portland, Or., and shipped from warehouses across the U.S. According to a legal notice published in the Chicago Tribune, “the inventory consists of lumber which is located at 26 locations in 17 states. The secured party (The PrivateBank & Trust Co.) has received an offer to purchase certain general intangibles for $100,000, certain accounts for 90% of the face value thereof, and certain inventory for 50% of the book value.” Before the auction, attorney Gary Segal said that the “lender is exercising its right under a loan agreement” to take materials that had been pledged as security for a loan. Sherwood was founded in 1954, by Bernard Goodman. His son Andy is now president of the company, which has sales offices in New York, North Carolina, Florida, and Washington, plus distribution centers in New York, Connecticut, Delaware, Virginia, and Florida.
Fast-Growing Chain Acquires Stockʼs Universal Supply
US LBM Holdings LLC, Green Bay, Wi., has acquired Stock Building Supply’s Universal Supply Co. LLC businesses in New Jersey. The deal broadens US LBM’s product portfolio through Universal’s strong focus on roofing and siding and extends the company’s reach into new geographic markets, including southern and central New Jersey, eastern Pennsylvania, and Delaware. Building-Products.com
The new division includes Universal Supply’s headquarters and millwork division in Hammonton, plus distribution centers in Cape May Courthouse, Lakewood, Gloucester, Manahawkin, Pleasantville, and Vineland, N.J. US LBM also operates four Bellevue Builders Supply yards in New York, and two East Haven Building Supply units in Connecticut, and eight Wisconsin Building Supply locations, all purchased from Stock late last year.
Illinois Dealer Closes 2
Beatty Lumber Co., Joliet, Il., closed its long-time locations in Oak Lawn and Morris, Il., on Jan. 1. Locations in Joliet and Beecher, as well as the Fort Poli Millwork facility in Mokena, will remain open. “Each year since the middle of 2006, it’s gotten a little worse and worse, and we had to do some things we preferred not to do,” said Bruce Baldridge, v.p.-marketing. “We did everything we could to not close facilities.” Efforts included consolidating the corporate office from two different locations to Joliet, making some locations pick-up only, and laying off employees. But as the housing recession worsened, officials decided to close both the Morris and Oak Lawn locations because of too little business. Both areas will be served by remaining stores. “I have quite a few years left to work, and we will try to build up again at a better time,” said Ed Winkless, who is executive v.p. Closing sales were scheduled for late January or early February, and the properties are for sale.
Fire Strikes Curtis Lumber
Investigators believe that an olderstyle high-intensity-discharge (HID) light fixture was the cause of a Dec. 29 fire that destroyed a warehouse at Curtis Lumber’s location in New Berlin, N.Y. The 60-ft.-by-200-ft. structure— one of several owned by Curtis—was used as a storage area for insulation, steel panels, vinyl siding, garage doors, shingles, specialty cedar, and other materials. Although the blaze quickly engulfed the structure, firefighters prevented it from spreading to other buildings on the property. “There was not very much left,” said fire captain Dwayne Jackson. “We didn’t do a lot of salvage.”
DEALER Briefs
R.P. Lumber, Edwardsville, Il., acquired the former Stock Building Supply location in DeKalb, Il., from Wolohan Lumber for $1.14 million. Stock had been leasing the property from Wolohan since the late 1990s. The 45-unit R.P. expects to open the yard by April 1.
Tradesmen Building Center, Two Harbors, Mn., has closed after four years. Handyman Hardware, Dayton, Oh., suffered several thousands dollars in fire damage to its roof Dec. 25 when winds blew a wire near a 1,000-gallon propane tank.
84 Lumber is reopening the yard in Madison Heights (Lynchburg), Va., that it mothballed last year. 84’s yard in Pittston Township, Pa., suffered a small fire Jan. 8, apparently set to cover up a burglary.
Greener Stock: Building Materials with a Conscience,
Columbia Tusculum, Oh., has opened, specializing in eco-friendly building products and design services.
Campbellsport Building Supply, Campbellsport, Wi., acquired Drexel Interiors, Milwaukee, Wi., from Home Value Interiors , Minneapolis, Mn. Drexel’s staff, headed by John Deerwester, remains.
Holliday Hardware , Greensboro, N.C., closed Dec. 26 after 54 years.
Avon Lake True Value, Avon Lake, Oh., closed Dec. 28 due to big box competition. Rhonda Schneider purchased the business three years ago from her family, which had held it for 21 years.
Stevens Hardware, Wilmington, N.C., opened its 3rd location in town Jan. 16, remodeling a 23,000-sq. ft. former Ace Hardware. Abita Lumber , Abita Springs, La., donated to the town 0.34 acres, which provide the only access to the local cemetery. The parcel was part of 15 acres the yard purchased two years ago to accommodate future growth.
February 2010 Building Products Digest
17
SUPPLIER Briefs
Newly merged Scotch & Gulf Lumber LLC was working to restart
before the end of January its sawmill in Fulton, Al., closed by Scotch Lumber in October.
Kentucky Hardwood Lumber Co. , Somerset, Ky., suffered
extensive damage from a Jan. 10 fire.
Woodruff Hardwoods, Duluth, Mn., has been acquired by Bob Merrill and renamed Woodruff Timbers.
Ainsworth’s former OSB mill in Grand Rapids, Mi., has been purchased by the Itasca Economic Development Association. IEDA will demolish about half of the buildings and invest $5.5 million to redevelop the facility into an eco-industrial park focusing on renewable energy industries—including an unnamed wood products company.
Koppers Inc., Pittsburgh, Pa., has shuttered its wood preserving facility in Gainesville, Fl., and sold the site—which requires environmental clean-up—to Beazer East Inc. , Pittsburgh. Koppers will continue providing utility poles to the Southeast from its Florence, S.C., treating plant. Advanced Environmental Recycling Technologies, Spring-
dale, Ar., voluntarily delisted from the Nasdaq Stock Market and is now trading on the OTC Bulletin Board.
PacTrim, Rocklin, Ca., will now produce MoistureShield composite trim and moulding products for A.E.R.T.
BlueLinx Corp. expanded its distribution of LifeTime Lumber’s composite decking from the Southwest to Iowa, Missouri and Oklahoma.
Manufacturers Reserve Supply, Irvington, N.J., is now distributing Fairway Vinyl Systems’
PVC and aluminum railings in New Jersey, Pennsylvania, Delaware, New York, and Connecticut.
Armstrong World Industries Forest Stewardship Council chain-of-custody certification for its HomerWood Hardwood Flooring plant in Titusville, Pa. received
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BMHC Becomes BMC Select
Building Materials Holding Corp has completed financial restructuring and emerged from Chapter 11. The company’s secured lenders converted debt into equity, became the new owners, and consolidated its operating brands as BMC Select. Corporate headquarters moved back to Boise, Id., from San Francisco, Ca., “Like every business associated with residential housing and construction, our company has faced unprecedented challenges during the last few years,” said Paul Street, BMC Select’s new c.e.o. “Our new name celebrates our new beginning and leverages the important legacies and brand equity associated with BMC West and SelectBuild.” A new executive management team comprised of company veterans will lead the company, with assistance from a new, independent board of directors. Stan Wilson will continue as president and chief operating officer, and Danny McQuary will serve as chief financial officer. The new board includes Street, Jay B. Hunt, Peter C. Alexander, Marc Chasman, Dennis Downer, Michael A. Maidy, and Carl R. Vertuca Jr.
Atlanta Hardwood Buys Craig
Atlanta Hardwood Corp., Atlanta, Ga., has acquired Craig Lumber Corp., Collierville, Tn., and renamed it AHC Craig Imports. Founded in England in the 1960s, Craig Lumber added its U.S. operation in 1977. It directly imports more than 30 species of exotic lumber, specializing in West African and South American hardwoods. “Joining Atlanta Hardwood gives us the advantages of selling both domestic and imported hardwoods and a sound financial footing for the future,” said Charles Craig, who stays on as v.p. of AHC Craig Imports.
G-P Acquires Grant OSB Mills
Georgia-Pacific, Atlanta, Ga., agreed to acquire Grant Forest Products’ OSB plants in Allendale and Clarendon, S.C., and Englehart and Earlton, Ontario, for approximately $400 million. Last summer, Grant filed for bankruptcy protection. “These are world-class facilities that fit strategically with our current wood products operations and we are pleased with this opportunity to grow our OSB business in Canada and the U.S.,” said Mark Luetters, president of
Building Products Digest February 2010
G-P’s wood products division. G-P plans to continue operation of the plants in Canada and Allendale, and make capital investments of several million dollars to improve reliability and efficiency. In Clarendon, the company plans to complete construction of the unfinished plant and begin operations as soon as the market improves. The transaction is expected to close in the first half of 2010, following approval in the U.S. and Canada.
Fiberon Rebrands Company
Fiber Composites LLC, New London, N.C., has changed its name to Fiberon LLC, assuming the name of its popular brand of decking and railing products. The corporate name-change is aimed at creating brand consistency in communications, as part of an ongoing strategy to expand its overall decking solutions portfolio under the Fiberon brand. “Fiberon products have achieved an unblemished reputation for innovation and reliability in the alternative decking and railing industry segment. As such, we as a company want to focus on the Fiberon brand as we expand our product line and sub-brands in a variety of building products categories,” said Doug Mancosh, owner and c.e.o.
Former Ohio Exec Indicted
Terry A. Robbins, the former president of several Ohio Valley lumber businesses, has been sentenced to pay $2.4 million in restitution and serve three years in prison for fraud. The sentence also included five years of post-release supervision, forfeiture of $99,120, payment of $771,422 in restitution to the Pennsylvania Lumbermens Mutual Insurance Co., and $1,701,578 to Huntington National Bank. In March 2003, Robbins established a $5 million line of credit with Huntington National to provide operating funds for NKR Inc., which did business as Ohio Valley Lumber, Piketon, Oh. According to prosecutors, by October 2003 he was submitting false and inflated business records in a scheme to defraud the bank. In March 2004, he inflated the value of lumber destroyed in a fire at Ohio Valley Lumber when he submitted a claim to PLMI. In October 2007, he committed mail fraud when he moved proceeds between companies he and his wife owned, to conceal the origin of the money. Building-Products.com
OLSEN On Sales By James Olsen
Do the math W
E ALL HAVE A “NUMBER”
we want to hit. The myth of having 40 hours a week to hit that number is just that, a myth. This myth causes many to relax and think they have more time than they actually do to find and close business. This leads to unfocused, lackadaisical sales calls and organization. The “action” in a basketball, football, baseball game or golf tournament is a fraction of the time spent preparing for the action. The same can be said of our sales years, weeks and days. Let’s do the yearly math first: 365 – 104 weekend days = 261, – 10 (vacation days) = 251, – 5 (national holidays) = 246 actual selling days. Before we continue with our math problem, let’s talk about the 104 weekend days. Bryan Concannon says, “Monday thru Friday is for keeping up, Saturdays are for getting ahead.” David Olsen says, “If you’re not coming in on Sunday, don’t bother coming in on Monday.” I quote these two gentlemen because I run across so many sellers who tell me they will do anything to succeed. These same salespeople work a non-intense 37-and-a-halfhour week and expect to compete with guys like Bryan Concannon and David Olsen who really mean it when they say they will do anything to succeed! If, in addition to our normal week, we work ever Saturday and half days on Sundays, we will have a 31% advantage over most of our competitors. If we work Saturdays, we have a 20% advantage. If we work one half day per weekend or every other Saturday, we will have a 10% advantage. “The Millionaire Next Door” says that most millionaires in America work 60-70 hours a week and buy used cars. (Who buys all the new cars? Well-paid sales people rank high on the list.) As salespeople, we are running a small business. Entrepreneurial work habits produce entrepreneurial results; employee work habits produce employee results. Here’s an exercise I do with my classes (and myself).
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Building Products Digest February 2010
Make a grid of your week, 6 a.m. to 6 p.m., Monday to Sunday. Fill in the hours with the following: • In-house meetings • Administration/paper work/research • Prospecting (finding and qualifying new customers) • Selling (working existing qualified accounts) • Breaks/personal time If you are like most sellers, you will say 24-28 hours a week of selling time in a 40-hour week. The real number is probably lower. Most lumber brokers will tell you they have a tough time logging 200 minutes a day on the phone. This is just phone time. Let’s assume these sellers are on with customers for the full 200 minutes. 200 x 5 = 1000 minutes, ÷ 60 = 16.6 hours per week. I work with road salespeople and street salespeople. Rare is the day we spend more than 4 hours in front of customers. 4 hours x 5 days = 20 hours per week.
Our True Number
According to David Foster Wallace, “The truth will set you free, but not until it’s done with you.” Dividing our number by actual days and hours may scare us (it does me!) and will definitely focus us. It will help us understand the need for thorough preparation for each call. For example: 28-hour sales week: $100,000 ÷ 246 = $406, ÷ 5.6 hours (28 ÷ 5) = $72.50 per hour. With a commission schedule paying 33%, we will need to generate $217 of profit every selling hour. 20-hour sales week: $100,000 ÷ 246 = $406, ÷ 4 hours (20 ÷ 5) = $101.50 per hour. With a commission schedule paying 33%, we will need to generate $304 of profit every selling hour. 16.6-hour sales week: $100,000 ÷ 246 = $406, ÷ 3.3 hours (16.6 ÷ 5) = $123 per hour. With a commission schedule paying 33%, we will need to generate $369 of profit every selling hour. For sales managers and individual salespeople alike, knowing our sales math will show us exactly how and where to spend our time. Knowing our sales math will intensify and give urgency to each of our sales calls. Our true selling time is finite. Be prepared. Do the math. James Olsen Reality Sales Training (503) 544-3572 james@ reality-salestraining.com
Building-Products.com
GREEN Retailing By Jay Tompt
Taking stock of your green stock
T
HERE ’ S AN OLD BIT OF BUSINESS WISDOM
that goes something like, “You can’t improve what you don’t measure.” It seems appropriate to spend a little time thinking about that. For one thing, it’s January, a natural time to assess where we are, resolve to make improvements, and chart a course for the rest of the year. For another, it’s a fundamental principle underlying every serious sustainable business initiative. It’s a simple formula: identify the right things to measure, create benchmarks, set goals for improvement, monitor performance, and adjust as necessary. Whether the economy in 2010 comes roaring back or stays about the same, it’s clear that there are revenue-boosting and costsaving benefits for companies that get serious about sustainability. For dealers, the core business is all about the product mix, with basic metrics tracking sales, velocity, inventory, etc. Assuming staff is trained and products are merchandised well, these metrics can be useful for identifying the poorest performing SKUs to eliminate and which categories to strengthen. But to address the needs and desires of the growing number of “green” customers, these metrics fall short. How many of your products would contribute to LEED credits? What percentage is Energy Star-rated or would qualify for rebates? Which products are heavy energy consumers or contain the most toxic chemicals? And where are they manufactured: locally or the other side of the planet? Some “big box” retailers and major mainstream product manufacturers have benchmarking programs in place and are mobilizing their marketing teams around them. For example, WalMart introduced its Supplier Scorecard a couple of years ago and last year announced its Sustainability Index Consortium, an effort to define standards for a variety of product categories. They’ve also announced goals to reduce packaging and increase the number of green products on shelves. The Home Depot rolled out its EcoOptions program in 2007 with 3,000 products and announced a goal of increasing that number to 6,000 by 2009. Their website claims to have sold over one billion such products since the program’s inception.
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Building Products Digest February 2010
Proctor & Gamble also announced an initiative to benchmark chemicals used in their products with a goal of reducing toxics. All of these efforts have garnered positive press and “greened” their respective reputations. The basis of these kinds of goals and marketing claims are the assessments, but these kinds of programs, and their benefits, are not exclusive to big companies. My firm recently helped a group of much smaller companies create green product criteria against which we characterized about 250,000 individual SKUs. The result is a starting point from which these companies can create meaningful business goals, merchandising programs, and marketing campaigns. More importantly, they now have a new set of metrics that will help them measure performance and progress toward their goals. Imagine a dealer or distributor who wants to become the energy efficiency leader in their market, but they have no idea how many Energy Star or other energy-saving products they already sell. They’re literally in the dark with a meaningless, maybe even dubious, goal unless and until they know their starting point. Only after assessing their product mix, can this imaginary dealer resolve to double the number of Energy Star products, properly train and incentivize staff, and begin to make the marketing claims that would lead them to their goal. For real-world dealers and distributors, the benefits of such benchmarking could lead to greater sales, deeper organizational knowledge, and competitive advantages. By any measure, that’s not a bad way to approach the new year. Jay Tompt Managing Partner Wm. Verde & Associates (415) 321-0848 info@williamverde.com
Building-Products.com
INDUSTRY Trends
Moulding and millwork– recovery or mirage?
R
ECENT HEADLINES FROM ACROSS
the country have noted signs of life in the moulding and millwork industry. But is news of a turnaround premature? “Hiring with Hope” ran a Chico, Ca., newspaper headline announcing that Sunset Moulding was looking to add workers at its local plant. In actuality, Sunset needed to fill just three entry-level positions—and those were to replace one employee who retired and two others who resigned. “It’s not that business is getting better,” said plant manager Tom Maclean. “I’ve got spots to fill. They’re labor jobs.” He received about 25 applications in the first three days the hiring sign was up, even though the starting wage was low. But benefits are included
and, he said, “those can be more valuable than the wage.” Maclean hopes for better days, but thinks they’re not here yet. “I started in the lumber business out of college, and I’ve never seen it this bad,” he said. When the housing market was booming, Sunset employed approximately 150 full-time. The plant currently has about 45 employees. At the close of 2009, American Millwork, Elkhart, In., was able to put 18 employees back to work. Earlier in the year, however, American had laid off 72 workers when parent RAF Industries shifted production to sister company Ferche Millwork, Rice, Mn. “I’m so excited about hiring people back,” said Tom Harper, who has served as president of American Millwork for the past year. “It’s a
AMERICAN MILLWORK’S plant in Elkhart, In., is busy again. Employees Rob Wilson (background) and Andrew McKenna (foreground) work in the rip-saw area, where lumber is ripped and sorted before being sent to the moulding machines.
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Building Products Digest February 2010
good feeling because it was awful when we had to let those people go.” Harper hopes to be able to rehire more workers before the end of 2010. “I’m pretty optimistic we’re going to see good sales growth this year,” he said. “As we grow, we’ve got plenty of space here.” According to RAF Industries, “options and incentives not available to us previously” prompted the company to reconsider its plans to close the Elkhart facility. Other factors were a slight upswing in the housing market and employee wage concessions. The equity firm also said that ramping up production in Elkhart “represents the best long-term positioning of the combined businesses when our industry recovers from the current economic conditions.” Unfortunately, just after American took a step forward, Ferche took two back. In early January, Ferche laid off 22 employees on the night shift, representing less than 10% of the company’s work force. “It’s economic in nature. Under current conditions, you don’t need that capacity,” said Gerald Grider, president of Ferche. “We’ll certainly take that capacity back when conditions change.” There was no way to spin the news as good at Union Planing Mill, which was forced to close at the end of 2009 after 118 years in Stockton, Ca. “The state of the construction industry right now is terrible,” said president Matt Brodie. “You bid and you bid and you bid, with very little to show for it.” One of the problems, Brodie said, was that the company lacked the deep pockets needed to continue operating in an uncertain economy. “It comes down to capital,” he said. “The bigger, better capitalized companies will be the survivors.” Building-Products.com
MOVERS & Shakers Scott Schmidt, ex-Correct Building Products, has joined Fiberon, New London, N.C., as regional mgr. for eastern Pennsylvania, southern New York, Long Island, and northern Delaware. Larry Stoddard, ex-Wolseley, has been named c.e.o. of Bradco Supply, Avenel, N.J., succeeding Tom Karol, who continues as executive chairman. Dennis Weaver is the new engineered wood products sales mgr. for Smith Phillips Building Supply Winston-Salem, NC Doug Willey has been named mgr. of Habitat for Humanity ReStore, Dover, N.H. Michael Mordell has been named executive v.p.-purchasing for Universal Forest Products, Grand Rapids, Mi., replacing David Phelps, who is retiring. UFPI is also splitting its Eastern Division into a Northern Division, headed by divsion president Scott Greene, and a Southern Division, headed by division president Robert Lees.
26
Craig Ratchford, ex-James Hardie, has joined New Home Building Supply, Greensboro, N.C., as v.p. of sales & marketing. Bud DeFlaviis has been appointed executive director for the Sustainable Buildings Industry Council, Washington, D.C. Russ Kathrein has been promoted to president of ProBuild’s Northeast region, based in Moorestown, N.J. He replaces Joseph Todd, now president of market development. Brian Krohn is a new account mgr. in the Denver, Co., office of Capital. Neil Hoffard is a new account mgr. in the Houston, Tx., office. A.J. Bumby, ex-Timber Holdings International, is now senior v.p.commercial sales at East Teak Hardwoods, Dallas, Tx. Matt Mladenka, director of marketing and sales, has passed U.S. Green Building Council’s LEED Green Associate accreditation exam. Carrie Mayer is a new interior designer at Van’s Lumber and Custom Builders, Dyckesville, Wi.
Building Products Digest February 2010
Scott Banda has been named business mgr.-consumer products group for Bostik Inc.’s Construction & Industrial Business Unit, Middleton, Ma. Dave Smith has rejoined Town & Country Homecenter, Crawfordsville, In., as mgr. of its Carpet One flooring department. Jimmy Harris, Harris Ace Hardware, Brevard, N.C., was named the Retailer of the Year by the county board of commissioners and economic development advisory board. Sherry McFarland is now a Certified Bath Designer at Atlantic Design Center, York, Me., a division of Eldredge Lumber. Ken Iverson, Marvin Windows & Doors, Sioux Falls, S.D., was named Remodeling Council Member of the Year by the Home Builders Association of the Sioux Empire. Papa Wheely is now in charge of driver training for Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Building-Products.com
Minnesota Glulam Plant Plans Expansion
Alamco Wood Products, Albert Lea, MN., will begin an $850,000 expansion this summer, installing glulam equipment and hiring at least 12 more workers. “We are anticipating the market will come back toward the end of this year and grow into next year, especially for the power pole industry,� said general manager John Forman. “We want to be poised to take advantage of market growth.� He said several wood-laminating companies have closed because of the recession, bringing more work to Alamco. The company also received state and local tax breaks that helped make the expansion possible. “You need some reason to leave your jobs here,� said Forman. The company got its start in 1939, as Rock Island Lumber, and became a division of Weyerhaeuser in 1960— which closed the plant in 1982. Later that year, it was purchased and reopened by 10 former employees. In 2009, Alamco was acquired by Bell Lumber & Pole, New Brighton, Mn.
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Closing after 30 years of business was difficult enough for the owners of Pyle’s Home & Supply, Avondale, Pa. But break-ins and shoplifting made it even worse. “People would pull into the lumberyard at night, load up, and drive away,� said Alex Pyle, son of president Jeffrey Pyle, who added that shoplifting during the day also increased. He said that he would have preferred to give away items to loyal customers, rather than deal with such negative behavior. After the store officially closed the last week of December, any remaining inventory was donated to local nonprofit organizations, including Habitat for Humanity and the SPCA, and the building, equipment, and property were listed for sale. Pyle’s father and uncle founded the store 30 years ago. The family blamed the closing on a poor economy and the fact that the construction of a drug store would virtually land-lock the store. In contrast, said Pyle, business at the store actually went up when a Lowe’s opened nearby.
Building-Products.com
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February 2010 Building Products Digest
27
DEALER Briefs
Lowe’s opened new stores Jan. 22 in Clemson, S.C., and Jan. 8 in Chalmette, La., and Greenland, N.H. (Jose Franqui, store mgr.).
Menards expects an early spring opening for a 162,000-sq. ft. store in Jefferson City, Mo. (Dave Helmick, general mgr.), and paid $4.5 million for about 11 acres in Otter Creek Township, In., site of a former Monninger concrete products plant. Habitat for Humanity will open a ReStore discount LBM outlet this spring in Bond Hill, Oh., and held a Jan. 21 grand opening for a new unit in Montclair, Vt. Habitat selected a 10,000-sq. ft. site next to a Lowe’s in Rockingham, N.C., to open a ReStore by April 1. Several other locations have outgrown their current quarters. The Struthers, Oh., store is building a 6,000-sq. ft. addition and the unit in Robertsdale, Al., moved to a bigger, 12,000-sq. ft. building in Summerdale, Al. Other stores recently relocating to larger facilities were Council Bluffs, Ia.; Oxford, N.C., and Rapid City, S.D. Stock Building Supply
redesigned its website, stockbuildingsupply.com, to represent the full spectrum of LBM and services the chain provides. The site is now comprised of seven sections, including “Green Resources.”
28
Cost-Effective Green a Trend to Watch The key to the mainstreaming of green is to make sure that consumers understand the value of green upgrades—and exactly how costeffective that sustainable construction can be in the long run, according to a panel of green building experts at the National Association of Home Builders’ recent International Builders Show in Las Vegas, Nv. Builders, remodelers and product manufacturers are beginning to green their processes and incorporate more energy-, water-, and resource-efficient features. They are learning how to reduce waste on the job site to save enough money to pay for these upgrades—and help ensure that the builder makes a profit, said consultant Steve Bertasso. Green building has truly reached the tipping point because it's moving out of the custom home market into the realm of high-production homes, he added. “This year is going to be a big change in the production [building] environment,” Bertasso predicted. “Consumers are asking questions they didn't ask two and a half years ago and contractors are making better decisions.” The key to reducing the nation’s energy use is to green existing homes, said Philip Beere, who is remodeling distressed properties near Phoenix’s new rapid transit line. Adding insulation, improving the ventilation and air conditioning systems and replacing turf grass with landscaping more appropriate to the Southwest’s desert climate doesn’t cost much more than
Building Products Digest February 2010
a traditional remodel, but “retrofitting these homes to be green is a good solution,” he said. Connecticut home builder Jim Pepitone called himself a “late adopter,” but one who has finally seen the green light—and believes the rest of the industry can’t be far behind. Builders need to educate consumers on air sealing, the importance of right-sized heating systems and good insulation, and the advantages of rooms that can serve more than one purpose so the home can be smaller and less expensive, he preached. “We need to make sustainable attainable.”
Fire Costs Alabama Plywood Producer Laminating Line
Hartselle Plywood & Lumber, Hartselle, Al., is operating out of a mobile office after a Jan. 16 fire destroyed its office and manufacturing building. The company is looking for new equipment to reopen its laminating line. An adjacent building, which housed its plywood operations, was spared. “I want to remove the debris from the site and rebuild,” said owner Greg Grimes. “Time is of the essence, since about 50% of our business is gone. A machine we used to laminate panels for mobile home applications was our biggest loss. They’re hard to find. I spent several hours over the weekend searching on the internet without success.” The fire’s cause is under investigation.
Building-Products.com
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PRODUCT Spotlight Radiata Pine Exterior Trim
Radiata pine makes its mark in exterior trim A
LTHOUGH GOOD, OLD WOOD
Lifespan exterior trim and siding photo by Tenon
continues to hold the lion’s share of the exterior trim market, sturdier alternative materials have been making inroads. There are fast-growing cellular PVC products, such as Azek Mouldings, Royal Mouldings’ Quick Trim, Koma Trimboards, and CertainTeed Restoration Millwork. There are engineered products, including LP SmartSide, and hardboard trim, including Collins’ TruWood. And fiber cement, such as from James Hardie and Plycem, also remains hot. That doesn’t mean wood has sat idly by. Stronger, more versatile
wood products have arrived, particularly from the radiata pine forests of New Zealand and Chile. To justify the long-distance shipping, the first radiata pine to arrive in the U.S. two decades back were highgrade, clear products. Due to their natural good looks, they initially targeted interior millwork applications. Over the last half-dozen years, however, radiata pine producers have attempted to expand and diversify by looking outdoors. Since, once outdoors, it will inevitably end up primed and painted, radiata pine exterior trim is now touting selling points beyond appearance. Among the advantages:
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30
Building Products Digest February 2010
Building-Products.com
• Sourced from sustainably managed plantations. (Several, in fact, are FSC certified.) • Pressure treated for durability, insect resistance, and moisture protection. • Covered by decades-long warranties again rot, fungal decay, and termites. • Treated with organic, non-corrosive preservatives. • Machine finished with primer and/or paint. • Require no special tools, cutting equipment, or fixing methods. • Kiln-dried and defects removed prior to fingerjointing for a smooth finish. • Can also be used indoors. “It’s a perfect product—and it’s proven,” said John Barry, sales manager for ITI Americas, which produces DesignPine radiata pine from a state-of-the-art facility in Chile. “It’s been used extensively in Australia, New Zealand, and Indonesia, so due to its popularity we needed a larger source of supply and went to Chile.”
Radiata Pine Exterior Trim Producers Bodyguard
Bodyguard trimboard www.bodyguardwood.com www.kelleher.com
Boston Cedar
TiO2 Titanium White trimboard www.bostoncedar.com
Claymark USA
Centurion trimboard www.claymark.com
CMPC Maderas
Selex trimboard www.cmpc-usa.com
COMMCO
KlearChoice trimboard www.commcoklearchoice.com
Fletcher Wood Solutions
Lifespan, Fletcher Select, and Fletcher Prime trimboard www.fletcherwoodsolutions.com
ITI Americas
DesignPine trimboard www.itiamericas.com
WindsorONE
WindsorONE trimboard www.windsorone.com Building-Products.com
February 2010 Building Products Digest
31
New Owners Work to Restart Former Columbus Plants
Rex Lumber hopes to hire about 100 workers by the end of the year or early 2011 to start production at its Brookhaven, Ms., sawmill recently acquired from Columbus Lumber. The exact timeline, however, is subject to “a lot of moving parts,” cautioned Doug Boykin, general manager and former co-owner of the facility. The company is working with county and city officials to secure tax breaks, financial incentives, and grants to ease start-up costs, such as improving roads leading into the yard. Rex will invest “several million” dollars to modernize and increase capacity at the 65-year-old mill. Both Rex and Great Southern Wood Preserving, which acquired Columbus’ treating plant, are requesting a water well, but city ordinances prevent industries from drilling into the city’s aquifer. Great Southern hoped to restart its new plant by approximately Feb. 1.
Hand Tool Makers Join Up
Ideal Industries, Sycamore, Il., agreed to acquire hand tool manufac-
32
turer Western Forge, Colorado Springs, Co. Ideal’s Randy Thompson will become general manager of the
Western Forge subsidiary. Ideal vowed to invest “tens of millions of dollars” in new equipment to update Western Forge’s plant.
LUMBERYARD AS CLASSROOM: Eastern Engineered Wood Products, Bethlehem, Pa., recently hosted 60 seventh, eighth, and ninth grade students from UC Teams, a nearby charter school where students achieve high academic standards by using the built environment as a learning laboratory. The field trip exposed students to all aspects of the business, including production, transportation, customer service, procurement, accounting, and technical design. An interactive classroom session allowed students to mark up blueprints and assist in producing a framing layout utilizing a CAD computer program.
Building Products Digest February 2010
Building-Products.com
SUPPLIER Briefs
Cedar Siding Inc., Rochelle, Il., is now distributing Versatex PVC trim and CertainTeed ColorMax siding system.
Simpson Strong-Tie has integrated TimberTech composite and PVC decking, railing, and lighting products into its DeckTools Deck Sales & Design software. CertainTeed Gypsum is now the exclusive sales rep to independent professional channels in the U.S. for noise-proofing products from fellow Saint-Gobain subsidiary Green Glue Co., Granville, N.Y.
Simpson Door Co. extended the warranty on its interior wood doors to 10 years.
Fiberon has extended the industry’s first stain and fade warranty to 20 years on its Fiberon Horizon decking and Outdoor Flooring product lines.
Georgia-Pacific Wood Products achieved Sustainable Forestry Initiative chain-of-custody
certification for its engineered lumber facilities and SFI fiber sourcing certification for its engineered lumber, structural panels, and softwood lumber products.
Horizon Forest Products , Raleigh, N.C., has relocated its Beltsville, N.C., branch to a larger 36,000-sq. ft. facility. The company also received FSC chain-of-custody certification.
Euramax International, parent of Berger Building Products , Feasterville, Pa., launched a new website at www.euramax.com.
Trupine Products, Fort Myers, Fl., has launched a new website at www.trupineproducts.com.
Architectural Door & Millwork , New Hudson, Mi., cele-
breated its 20th anniversary by introducing a new logo and website, www.adamdoor.com. Anniversaries: Burke & Sons , Rock Port, Mo., 60th … Spruce Computer Systems , Latham, N.Y., 25th …
Building-Products.com
February 2010 Building Products Digest
33
FAMILY Business
Family businesses in the Age of Anxiety By Bernard Kliska
T
HERE HASN ’ T BEEN THIS MUCH
fear and uncertainty, lack of confidence in what the future will bring, along with questions of reliability of our government and corporate leaders, since the Great Depression. There is plenty for family businesses to be anxious about these days. But the truth is, during anxious and uncertain times, family businesses are better situated than most other businesses not only to survive, but to grow and prosper. The stock market and consumer confidence index have been bouncing as if they’re on a bungee cord. Economic concerns, accounting practices, and enormous bankruptcies have made business owners question their financial pictures, particularly since their banks, creditors, suppliers, and friends are asking questions they haven’t asked before. Across the country, prescriptions for tranquilizers and antianxiety medications have risen about 10%. Anxiety is contagious. In my work with family businesses, I’ve certainly seen
an increase in anxiety. The issues may be the same, but the worry puts those issues in an entirely different context and adds a risky new element to working through them. During
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Building Products Digest February 2010
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these times, even normal or inevitable changes become supercharged with anxiety. Anxiety usually affects decision-making in one of two ways, both of which are ill-advised. People become glued to the spot, afraid to make major decisions or moves. Perhaps on the theory that anything is better than sitting in a hot spot, they succumb to their panic and make hasty, reckless decisions. People are either spending far too much time trembling on the brink or wanting to charge forward. Families who used to worry about transitioning from one generation to the next aren’t just worrying about how to gracefully ease the founders out or how to choose the new successors without touching off battles and bruising egos. Some families want to act more precipitously than they might have done before the economic crisis: the Old Man has to go now, before things get worse. Other companies that clearly need to change want to put their succession plans on hold. Now is not the time to be rocking the boat, they say. If the boat is taking on more water, we can all just bail a little faster for a while. It’s not just succession issues that have become charged with anxiety. Businesses entering a new stage in their natural development aren’t asking the kind of positive, confident questions that go along with the excitement of growth. Instead of asking what they need to do, or how they can do it, people are asking whether they should do anything at all. Acknowledging today’s unique business and social environments seems important. It helps people see their concerns as something normal. It puts their anxiety in the proper place—as something that may make them more hesitant or reckless about making the necessary decisions, but not as something that’s directly related to what’s really happening in their business. We may not be able to destroy the beast, but we can certainly put it in its cage, where all it can do is occasionally rattle the bars and put on a distracting, but harmless, show. Family businesses can cope by replacing their anxiety with a renewed sense of mission. Family businesses are better situated than other companies to grow during uncer-
tain and anxious times. Instead of having stockbrokers and Wall Street analysts second-guessing, giving contradictory advice and worrying them into paralysis or recklessness, family businesses are ultimately answerable to their own internal, long-term support system. Personally and professionally, families have developed long-standing ways of supporting one another and sticking together, a reliable system that will continue to serve them well. If the anxiety seems too far out of proportion to the issue at hand, I ask them how they have supported each other in the past when things were scary or uncertain. Family businesses have qualities that help them not just stay afloat, but move ahead through uncertain times. By their nature, family businesses are more entrepreneurial and more flexible. They also have a deeper reservoir of loyalty to draw upon, not just from each other but also from their employees. Less prone to lay people off and more willing to hold onto employees longer, family businesses often have a more motivated workforce. I try to replace their anxiety with a renewed sense of mission. Dickens wrote: “It was the best of times, it was the worst of times.” Those words were never truer than when applied today to family businesses. As the backbone of our economy, family businesses will be among those who lead the way out of fear. – Bernard Kliska is an associate of the Family Business Consulting Group, Marietta, Ga.; (800) 551-0633. He can be reached at kliska@efamilybusiness.com.
Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.
CertainTeed Gains Approval for Class Action Settlement
CertainTeed Corp., Valley Forge, Pa., received preliminary court approval to settle a class action lawsuit alleging faulty asphalt shingles. The settlement provides a formula to pay individual claims when they are filed by homeowners who are part of the class, meaning the amount of the settlement hinges on how many claims will be filed in the future. The settlement deal covers only organic shingles, which the company discontinued manufacturing and selling in 2005, with the brand names Hallmark Shangle, Independence Shangle, Horizon Shangle, Custom Sealdon, Custom Sealdon 30, Sealdon 20, Sealdon 25, Hearthstead, Solid Slab, Master Slab, Custom Saf-T-Lok/Saf-T-Lok, and Custom Lok 25. The agreement does not include any fiberglass shingles, including the fiberglass formulations of Horizon, Independence, Hallmark, and Hearthstead shingles. Building-Products.com
February 2010 Building Products Digest
35
MANAGEMENT Tips By Mike Dandridge
How to win the war for talent
M
OST DISTRIBUTORS TODAY operate lean and hungry, expecting more from a slimmed-down work force. The need for efficiency has required a re-evaluation of all job descriptions and every employee must be flexible enough to handle tasks previously assigned to individuals no longer with the company. The bad news is (that wasn’t the bad news?) the labor force for the wholesale industry is shrinking, according to the U.S. Bureau of Labor statistics. Young people aren’t lining up to join the construction industry. So, in spite of an uncertain economy, distributors can’t wait for recovery to augment already streamlined branches. Just as a realtor will tell you now is the right time to buy a great house, the same wisdom applies here: now is a great time to hire the “right person.” Dr. John Sullivan, a leader among human resources advisers, designates recruiting as an “evergreen job, a mission-critical job where hiring is con-
36
tinuous,” regardless of whether an opening exists. By always interviewing promising job prospects, you can prequalify candidates for possible future openings, thus speeding up the hiring process when the job becomes available. Though hiring is the last thing most wholesalers are thinking about, the smart distributor is actively pursing talent. He understands that a business is only as good as its employees, and knows that finding and hiring the right person isn’t simply a matter of placing an ad in the Help Wanted section of the local newspaper. Hiring great people requires a well-thoughtout recruiting strategy. With that in mind, here are five steps to follow in developing such a strategy.
Step 1. Know why you’re hiring. Designing a recruiting strategy involves answering the question, “Why am I hiring?” Maybe that seems obvious, but it’s important to write down in a sentence or two what you intend to accomplish. Determine
Building Products Digest February 2010
how this new hire helps you in your bigger plan. How will it bring you closer to achieving your business objectives? Your decision to hire could be based on current or future growth. Or it could be to capture business from a competitor and grow overall market share. Or you could be broadening your product or service offerings in a new area, such as fiber optics, datacom, or security systems. Of course, you could simply be replacing a worker who is no longer on the payroll. Know why you are hiring and it will help sharpen your efforts.
Step 2. Write a customer-centered job description. Most distributors don’t bother writing a job description. “What’s to describe? We’re hiring someone for sales/warehouse/whatever,” they say. Or, if a job description does exist, it usually lists a set of tasks to be performed, like this one for an outside sales rep: “Maintain account base, take orders, and add new customers. Perform any duties assigned by branch manager.” Not a word about the “soft” skills needed, like the ability to empathize, improvise, and proselytize. While it’s true you want someone with the “hard” skills suited to the job at hand, your primary concern is how the individual interacts with customers to meet their expectations. That’s where soft skills come in. It’s important to determine if a job candidate owns the behavioral characteristics to successfully meet the expectations of the customer. Those qualities include verbal skills, high energy, enthusiasm and strong work ethic. Consider using a personality assessment survey or developing interview questions that focus on uncovering behavioral traits. Finally, make your job description all-inclusive. There are a growing number of women in wholesaling, and this labor pool is a rich source of talent often overlooked in a male-dominated industry. Step 3. Prioritize your hiring needs. Now that you have written a job description and you know what performance level to target, next focus on where it will do the most good. Warehouse, sales, purchasing, operations? Don’t assume if you hire enough people the job will get done. You need to hire the right people. Building-Products.com
Naturally, it would be ideal if you could always hire top performers, but in the real world, that’s not going to happen. Sometimes it is a matter of choosing from the best of available candidates.
Step 4. Identify future hiring needs, when possible. For instance, when the company wins a project requiring a bigger work force, let’s say an onsite vendor managed inventory, obviously more workers will be necessary. Don’t wait until the contract is about to start. Begin prescreening applicants right away. Another example of planning for future needs is when you’re having disciplinary problems with an employee and it’s becoming apparent you’re going to have an upcoming vacancy.
won’t take advantage of training offerings. The ones that do will be your more ambitious workers.
Future Now
Dr. Sullivan reminds managers and business owners to always be alert for good people. By looking outside the industry, you can start fresh with someone who doesn’t have preconceived ideas about the job requirements of a supply house employee. Remember, most distributors are downsizing. Your competitors aren’t going to take the talent shortage seriously until it’s too late. It’s just easier
to procrastinate and scramble for warm bodies as needed. It’s much harder to focus on skills development, strategic planning, and constant flexibility. But, developing strategies for hiring and keeping the best of the best can give you the competitive edge in the war for talent. And the distributor with the most talent wins.
– Mike Dandridge is a business speaker and author of several books on customer service, including his latest, Facing Goliath: Overcoming Predator-Competitors. He can be reached at mikedan@ mac.com.
Step 5. Design a service-level agreement for new hires to sign. Base it on the job description from step 2. Let employees know exactly what is expected of them. Spell it out. Don’t assume they’ll “just know” to greet customers courteously, answer the phone politely, keep the branch clean, and all the hundreds of other little items you expect employees to do without being told.
Where To Look?
One of the first places distributors look for skilled recruits is in the work force of a competitor. But, keep in mind that a worker who will leave a current employer, given the right offer, likely will leave you, as well. Besides, you don’t want someone else’s disgruntled employee. So how do you know when it’s worth taking a risk on an employee from a competing firm? Ask your sales people. Chances are they know who the best workers are in your community. If you’ve been in business for five years or more, you probably do, too. Make a point of getting to know the top performers in your marketplace.
Your Own Backyard
Don’t overlook the development of people who already work for you. Invest in training and develop your own talent pool. Offering training to eager employees can help retain workers and improve morale. It can also serve as a barometer for discovering which workers show initiative. Most employees, given the choice, Building-Products.com
February 2010 Building Products Digest
37
NEW Products
Exotic Hardwood Decking
Batu Decking is the latest addition to Nova USA Wood Products’ line of exotic hardwood products. Also known as membatu, red balau and mangaris, batu wood is known for its hardness, beauty and natural durability. Planks are offered in a full range of sizes, as well as tongue and groove porch flooring and trimboards.
NOVAUSAWOOD.COM
Fiber Cement Panels
Nichiha Sandstone fiber-cement panels are available in gentle gray, ash white, and autumn brown. Each panel is 7/8” thick, measures 18”x6’, and weighs 47.5 lbs.
NICHIHA.COM (866) 424-4421
(416) 483-0351
Laminate Flooring
Chelsea Park laminate flooring from Bruce features Lock&Fold technology for quicker installation. Each 5” plank has an AC3 wear surface for easy cleaning and resistance to stains, fading, or wearthrough. A Magnum HDF core resists surface spills or moisture from the subfloor.
BRUCE.COM
(800) 233-3823
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Building Products Digest February 2010
Ironwood PVC Decking
Endeck PVC decking from Enduris is now available in Ironwood, a dark, rich red-brown. The co-extruded decking has a woodgrainembossed surface on both sides, for easy reversibility. It also offers both scratch and slip resistance.
ENDURIS.COM (888) 329-7428
Building-Products.com
Brighter LED Flashlight
Cleaner Lumber
A new category of lumber products from iLevel by Weyerhaeuser resists mold and reduces cull, saving labor and inventory costs from sorting out inferior boards. Pro Series Lumber is treated with a mold inhibitor to help it stay clean and bright. Proprietary technology and quality control checks remove boards that have a greater tendency to eventually crook, twist or bow. The product carries a NAHB Green Approved rating and SFI certification. Available sizes are 2x4 through 2x12.
Duracell Daylite Tough LED flashlights use TrueBeam Optics technology for brighter, whiter light without dark spots. Three models (flashlight, spotlight and headlight) re 10 times brighter than ordinary LEDs, with five times the battery life of everyday flashlights.
DURACELL.COM (877) 277-6235
ILEVEL.COM
(800) 228-0024
Flame-Blocking Sheathing
FlameBlock fire-resistant OSB sheathing from LP Building Products is designed to slow down or block the progress of fire in residential and commercial buildings. A thin coating of non-toxic magnesium oxide cement and fiberglass reportedly provides fire resistance without exposure to chemical treatments. The product carries a Class-A flame-spread rating and is ICC-certified for common roof and wall designs in multi-family and commercial buildings.
LPCORP.COM (888) 523-7192
Building-Products.com
February 2010 Building Products Digest
39
Extreme Deck Fastener
Ipe Clip’s Extreme4 fastener is designed to work with any type of decking and install without special tools. The square shape and stainless steel insert fits into both customrouted biscuit grooves and pregrooved decking. With 4mm spacing, it also allows expansion and contraction of hardwoods boards. Colors include brown, grey and black.
IPECLIP.COM (866) 427-2547
Hidden Deck Fasteners
Invisi-Fast hidden deck fasteners from MM Products are compatible with all types of decking materials, including treated wood and composites. Constructed of Lexan, the UV-resistant fasteners have a built-in spacer for proper spacing and overhang tabs for hands-free attachment.
INVISIFAST.COM (866) 766-9427
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Building Products Digest February 2010
Stringer Connector
Simpson Strong-Tie’s adjustable stair-stringer connector offers a concealed connection while replacing framing. The LSCZ installs with hotdipped galvanized screws or Strongdrive SD screws. The fastener is field slopeable to all common stair stringer pitches and suitable for either solid or notched stringers.
STRONGTIE.COM (800) 999-5099
Matching Trim Screws
FastenMaster’s new Cortex concealed fastening system uses proprietary trim screws and a combination setting-tool/drivebit to install Versatex PVC trim. The system includes paintable PVC plugs, which reportedly eliminate caulking and sanding to hide nail or fastener holes. Each 250- or 750-lineal ft. package includes ACQ-approved screws, setting tools, and Cortex plugs.
VERSATEX.COM (724) 857-1111
Building-Products.com
offered, with choices of jetted and massage sprays. Additional water-conservation modes are included. Four finishes are available: polished chrome, polished nickel, satin nickel, and oil-rubbed bronze.
CALFAUCETS.COM (800) 822-8855
Fold-Up Tools
GorillaGrip folding tool sets from Bondhus come in inch, metric, and star-set combinations. The tools are made from Protanium steel,
Undercover Stapler
Paslode’s CapStapler speeds installation of housewrap, plastic sheathing, and roof underlayment. A patented button cap design protects against tearing, while a large capacity reel holds 240 3/4” to 11/2” FasCaps. An in-line magazine provides greater balance and control.
PASLODE.COM (800) 222-6990
Shower by Hand
California Faucets has added multi-function, handheld showerheads to its bath collections. Both contemporary and traditional styles are
while the polymer handles reportedly are stronger than steel.
BONDHUS.COM (800) 328-8310
Size does matter. Douglas Fir up to 20” x 20” x up to 40’ Cedar 16” x 16” x up to 32’ Rich ar d s o n Tim b ers is a leader in cu s to m m illw o rk and m anu f act ur in g o f cu s t om ized tim b ers , w it h cap abilit ies o f d eliv erin g pr o du c t s t h r o u g ho u t t h e U.S . S erv in g th e co n s t ru ct io n i n d u s t r y f o r n e a r l y 60 y e a r s , by t a k i n g t h e s p i r i t of t h e old an d co mb in ing it w it h th e lead ing t ech no lo gy o f t o d a y , Ri c ha r d s o n T i m b e r s i s a bl e t o of f e r w ho l e s a l e pr o du c t s w i t h u n p a r a l l e l l e d s er v ice and q u ality .
Richardson Timbers Ex clu s iv e d is t rib u to r of Tr u-Dr y Fir in Tex as , Oklah om a & Lo u is ian a
Building-Products.com
toll free (877) 318-5261
phone (214) 358-2314
www.timbersonline.com
fax (214) 358-2383 Since 1949
February 2010 Building Products Digest
41
ASSOCIATION Update Building Products Retailers Alliance has been founded by a group of state dealer associations to develop products and services for LBM companies. Bill Tucker, president of Building Material Florida Association, will also serve as BPRA’s president. “For years, the regional and state LBM associations have talked about the opportunities we’d create by pooling our thoughts and resources,” said Tucker. “With this new alliance, we’ve created the structure to turn those opportunities into reality.” In addition to FBMA, other founding members include Construction Suppliers Association, Northwestern Lumber Association, Illinois Lumber & Building Material Dealers Association, Kentucky Building Material Association, Southern Building Material Association, and Western Building Material Association.
Northeastern Retail Lumber Association is finalizing its list of seminars and meetings for the coming month. New Hampshire Retail Lumber Association is sponsoring a seminar on “Reducing Insurance Costs” March 2 in Bedford, N.H. Northern New York Lumber Dealers Association has its Product College March 10 in Canton, N.Y. Massachusetts Retail Lumber Dealers Association will tackle basic
blueprint reading & material estimating March 2-3 in Raynham, Ma., followed by an advanced estimating class March 4. MRLDA’s board meeting is March 10 in Mansfield, Ma. Other affiliate board meetings are Eastern New York Lumber Dealers Association’s, March 4 in Rensselaer, N.Y.; Central New York Retail Lumber Dealers Association, March 17, Liverpool, N.Y.; Lumber Dealers Association of Connecticut, March 24, Rocky Hill, Ct.; Long Island Lumber Association, March 30 on Long Island, and Vermont Retail Lumber Dealers Association, April 1, Quechee, Vt. Michigan Lumber & Building Materials Association is staging its annual Pro Building Showcase March 3-4 at Soaring Eagle Casino & Resort, Mt. Pleasant, Mi.
Northwestern Lumber Association’s Future Lumber Leaders-Iowa will meet Feb. 20 at Clarion Inn, Amana, Ia. The featured speaker will be Lynn Allendorf, an instructor at the Pappajohn Entrepreneurial Center, University of Iowa. Other speakers will be Tom Neel, Lake Lumber, Panora, and Kenton Klenk, Schrock Lumber, Mediapolis. March 4-5 is the Iowa Lumber Convention at the Marriott Coralville
Hotel & Conference Center, Coralville. The Nebraska Lumber Dealers Convention is scheduled for March 10-11 at Embassy Suites Hotel & Conference Center, La Vista. Both events will host exhibits, a reception and silent auction, and awards. Future Lumber Leaders-Minnesota & Dakotas will meet March 13 at Holiday Inn, St. Cloud, Mn. John Gagliardi, head football coach at St. John’s University, Collegeville, Mn., and the first active coach to be enshrined in the College Football Hall of Fame, will deliver the keynote address. Other speakers will include Dan Fesler, Lampert Yards, St. Paul, Mn., and Del Krusentstjerna, Shaw/Stewart Lumber, Minneapolis.
Florida Building Material Association and the Construction Suppliers Association will co-host a winter education conference Feb. 2426 at One Ocean Resort Hotel & Spa, Atlantic Beach, Fl. The featured speaker will be Jim Mathis. Other events will include a regional meeting, cocktail receptions and dinner, plus seminars and workshops. National Lumber & Building Material Dealers Association will storm Washington, D.C., March 1517 for its spring meeting and legislative conference at Marriott Washington, co-hosted by North American Building Material Distribution Association and Window & Door Manufacturers Association. Speakers and meetings will focus on how a housing recovery will end the current recession.
North American Wholesale Lumber Association will gather at Hotel Monteleone, New Orleans, La., March 24-26 for its annual conference and regional meeting. Motivational speaker Rachel Faulkner will discuss “Hope & Tenacity When All Seems Lost.” Also on the program are Michael Chrizst, assist v.p.-research, Federal Reserve Bank of Atlanta, and Wade Camp, Southeastern Lumber Manufacturers Association. Roundtable participants will discuss green building products. Special events will include a net-
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Building Products Digest February 2010
Building-Products.com
working reception, a railway trip and dinner in a refurbished dining car, dinner at Mother’s Next Door restaurant, and a private boat cruise on the Mississippi River.
Kentucky Forest Industries Association will host its 45th annual meeting March 24-26 at Holiday Inn University Plaza, Bowling Green, Ky. The meeting will begin with a golf outing. Additional social events will include a tour of the Corvette Museum and assembly plant, and a “meet and greet” evening reception. Other highlights include discussion of a pilot SFI program being developed for Kentucky, a silent auction benefiting the Kentucky Tree Farm Program, and an exhibition of products and services.
American Architectural Manufacturers Association has scheduled its 73rd annual conference Feb. 14-17 at JW Marriott Desert Springs, Palm Desert, Ca. Keynote speaker will be Mark Whitacre, the highest-level executive of a Fortune 500 company to become a whistleblower in U.S. history. The association’s Green & Sustainability Specification Task Group will meet, and the annual awards banquet will recognize outstanding members. March 23-24 is a Southeast region spring meeting at Hyatt Regency Riverwalk, San Antonio, Tx.
Kearney, Ne., died Jan. 6 in Kearney. A U.S. Navy veteran of World War II, he moved to the area to operate the lumberyard in 1952, selling it in 1995 to Lloyd and Sherryl Wilke and Andy Donovan, who renamed it Wilke-Donovan True Value.
Charlie Wheatbrook, 84, retired owner of Wheatbrook Home Center, Rolling Prairie, Ind., died Dec. 25 of injuries caused by falling on ice outside the store. After serving 18 months with the Navy during World War II, he founded his own lumberyard, which evolved into a home center. He retired several years ago.
Edward Joseph Bobby, 88, retired yard manager at Cramers Home Building Centers, died Dec. 25 in Pocono, N.Y. He served in the U.S. Navy. William Frank Thomas Sr., 91, owner of Frank Thomas Sawmill, Fallston, Md., died Dec. 11 in Fallston. He and his stepfather started the Graybeal Sawmill during the Depression. After Mr. Graybeal’s
death in 1969, the business was renamed. Mr. Thomas managed the business until he suffered a fall when he was 87, but continued to handle financial affairs.
Tom Best, 83, retired owner of several Best Ace Hardware stores in Delaware, died Dec. 20 in Lewes, De. The chain got its start in 1932, when his father started Tom Best & Sons in Nassau, De. The chain grew to include locations in Lewes, Harrington, Milford, and Milton.
Loren S. Thompson Jr., 70, owner for more than 45 years of True Value Hardware, York, Neb., died Jan. 1 in York. Nicolle “Nikki” L. Waltman, 34, an officer at Rochester Lumber, Rochester, N.Y., died Jan. 7 in Rochester. Ms. Waltman joined the family business after working in retail.
Gilbert J. Schneider, 72, former operator of True Value Hardware, Billion, Wi., died Jan. 17 in Brillion. He also worked for the Kohler Corp.
Appalachian Hardwood Manufacturers Inc. has scheduled its annual meeting for Feb. 23-28 at Long Boat Key Club, Long Boat Key, Fl.
IN Memoriam
Randall Earl “Randy” Brown, 55, general manager of Builders FirstSource, Knoxville, Tn., died Jan. 4. He had been with the chain since 1986.
Herbert “Chub” Smithback, 87, former co-owner of London Lumber, Menomonie, Wi., died Jan. 3 in Menomonie. He also co-owned Red Cedar Plumbing & Heating, Menomonie.
Carl C. Spelts, 91, former owner and manager of Spelts Lumber Co., Building-Products.com
February 2010 Building Products Digest
43
N.J.Ęźs Warren Closes Final Location
Warren Lumber & Millwork, Washington, N.J., shuttered its final location last month, after closing its five other yards through the course of 2009. The 39-year-old business ceased operations at its Washington lumberyard and millwork shop Jan. 8, but remained to auction off equipment and property. A year ago, the chain employed about 250, but gradually scaled back, until it was left with one location after closing its 14-acre Phillipsburg, N.J., yard in November. Ever since, the Phillipsburg Urban Enterprise Zone and local Regional Chamber of Commerce have been searching for another lumber company to revive the 14-acre site. “We’ve sent out some emails and feelers to other lumber businesses that may be interested in that Phillipsburg location,� said Chamber president Robert Goltz.
Atrium Windows Files Bankruptcy
Atrium Cos., Dallas, Tx., has filed for Chapter 11 bankruptcy protection as part of a restructuring plan to cut its debt in half, to under $350 million. The vinyl and aluminum window and patio door manufacturer anticipates the reorganization will take three to four months. “We will put in place a healthier capital structure that is more appropriate to the current size of the market, while freeing up additional cash that can be invested in future growth as the housing market rebounds,� said president and c.e.o. Gregory Faherty.
Receiver Takes Over North Pacific
A federal judge has appointed a receiver to sell North Pacific’s businesses and properties so its debts can be repaid. The company and its subsidiaries owe about $42 million on a $160-million credit agreement signed three years ago. Based in Portland, Or., North Pacific expanded nationwide in recent years by acquiring top wholesalers in each region—Schultz, Snyder & Steele in the Midwest; Saxonville USA in the Northeast, and Allen Timber in the South. North Pacific announced in August that it had signed a
4 U S P O H F S ' B T U F S 4 B G F S ™ ' B T U F O J O H 1 F S G F D U J P O
letter of intent to sell its assets to an unidentified “nationally recognized private equity firm.� When the deal did not close as expected before the end of the year, c.e.o. Jay Ross said, “We’re taking our time, they’re taking their time. That’s alright with us.� The deal never closed. Wells Fargo Capital Finance then gave North Pacific a January 15 deadline to sell its assets before the lenders would cease funding the loans. In the letter, Wells Fargo said it had received notice that BlueLinx Holdings Inc., Atlanta, Ga., was no longer willing to buy North Pacific’s assets on previously agreed upon terms. “This is the third transaction that would have provided for the payment of the obligations to the lenders that has failed to materialize in the past six months,� noted Amy Newman, v.p. of Wells Fargo Capital Finance.
KansasĘź Star Shuffles Management
Preparing for what it’s calling “an aggressive decade of growth,� Star Lumber & Supply, Wichita, Ks., recently reshuffled its top leadership. “What you’re going to see over the next decade is a lot of growth from Star,� said Chris Goebel, who was named c.e.o. and chairman of the board. “We’ll look at people, we’ll look at business, and we’ll look at acquisitions, both here and in new markets.� Chris replaces his uncle, Robert Goebel, who will continue to serve as a member of the board. Patrick Goebel was named president and chief operating officer. He will also replace his father, Michael, on the board. He previously served as senior vice president of the company’s building material group. Both men are grandsons of founder Earl Goebel, who started the business in 1939. The company has a truss plant and four yards in Wichita.; yards in Hutchinson, Salina, and Manhattan, Ks., and one yard in Oklahoma City, Ok.,
Blast Blows Top Off Lumber Shop
Investigators are trying to determine the cause of an explosion inside a shop building at Shelby Lumber, Shelby, Ne., that blew its metal roof several feet into the air. The company called its natural gas provider Dec. 19 after employees smelled gas in the building. An energy company worker had just turned off a gas line and walked away when the blast rocked the metal building. Firefighters contained flames to the shop area, so most of what was burned was scrap materials.
Transport Firm Breaks Down
Carlen Transport, Hampden, Me., is shutting down its 105-truck fleet and its Bangor, Me., reload due to the slow economy. Founded 23 years ago by Lenny and Carol Peters, the firm employed nearly 120 and specialized in the paper and lumber industries. Owner Lenny Peters will continue to run Mitsubishi truck dealership Carlen Service Center, Hampden.
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Building Products Digest February 2010
Depot Invests in Handheld Tech
Home Depot plans will invest more than $60 million— it’s biggest capital investment in 2010—in handheld devices that will help employees stock shelves, make telephone calls, and ring up customer transactions anywhere in the store. “This is the first big customer-service tool we’ve given Building-Products.com
our associates in a very long time,” said Matt Carey, who was hired away from EBay in 2008 to become Depot’s chief information officer. “If you compare us to a world-class retailer, from a technology perspective, 1991 is kind of where we are pegged.” For the past 10 years, the chain’s employees have managed inventory with computers powered by motorboat batteries on rolling carts. In contrast, Lowe’s has used handheld wireless technology in its stores since 1995. Starting this spring, each of Depot’s 2,000 U.S. stores will receive at least five of the Motorola devices— which combine mobile-telephone calling, walkie-talkie communications among employees, and inventory management in a single device. With an attachment, the device can process credit and debit cards, allowing purchases to be made away from the checkout registers. “With the way things are going in the economy, it’s better for a retailer to invest in a customer-facing technology than a back-end technology where they may not see a rate of return as quickly,” said researcher Sahir Anand. The device used at Lowe’s is similar to Depot’s. Employees in any department can start customer purchases that cashiers complete by typing in shoppers’ phone numbers. Lowe’s does not use the credit-card processing function because of concerns over possible theft of transaction information over the wireless network.
Building-Products.com
Lumberyardʼs Crafty Fundraiser Feeds Locals
The fifth annual Bread ‘n’ Boards fundraiser at Sears Trostel Lumber & Millwork, Riverside, Co., raised more than $17,000 for a local food bank. “This year, there was some real gravity to doing it and doing it well,” said store manager Matt Chavez. Due to the bad economy, the food bank distributed 7.5 million lbs. of food in 2009—up from 6 million lbs. in 2008. More than 500 cutting boards in four different shapes were auctioned off during the Dec. 5 event.
TOP BOARD at fundraiser fetched $200.
EMPLOYEES and volunteers create boards during the fundraising event.
Each came with a bottle of finishing oil, plus a coupon for a free loaf of bread from a local bakery. Top price was $200, for a “signature” board made by a craftsman who’s also a customer. “We wanted to involve more people and wanted to add more variety to the signature boards,” said Chavez of the boards created by local craftspeople. Every board sold at the event was made from hardwood scraps collected at the company’s millwork facility and glued into blanks. These were then routed and shaped by employees and customer-volunteers at the Riverside location—half before the event and half during, so attendees could witness the process.
February 2010 Building Products Digest
45
IBS 2010 Photos by BPD
INTERNATIONAL BUILDERS SHOW bounced back to Las Vegas, Nv., Jan. 19-22. [1] Jon Bailey, Bebe Rogers. [2] Sven Backhaus, Peter Graal. [3] Chris Terrels, Carol Lyn Groce. [4] Scott Enegren, Justin Gregory, Jack Delaney. [5] Jim Abbott, Matt Prince, Curtis Eck. [6] Jessica Navascues, Rex Scott. [7] Jerry Higman, Will Higman, Randall Richards. [8] Larry Crossley, Jay Lattanzio. [9] Joel Adamson, Ken Goodnough. [10] Don Dellget, James Mahler Jr., Nisha Vyas, Kyle
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Building Products Digest February 2010
Conner-Diven. [11] Jeff Richards, Bob Edwards. [12] David Jeffers, Brad Morrow. [13] Kim Pohl, Howard Rothstein. [14] Kenneth Roush, Steve Schwartz, Jack Nagy. [15] Alan Stoneking, Eric Sigmon, Phil Lail, Brian Orchard. [16] Scott Stout, Dan Warren. [17] Jeff McLendon, Lawrence Newton. [18] Jeff Morlock, Jack Krass, Chris Johnson, Mirco Walther, Max Herrmann, Bill Bevacco. [19] Brent Gwatney, Gina Hardin. (More photos on next page) Building-Products.com
IBS 2010 Photos by BPD
MORE IBS: [1] Russell Richardson, Richard Wallace. [2] Digges Morgan, Alan Oakes. [3] Leigh Marie Lunn, Seamus O’Reilly, Shannon Mott. [4] Peter Delaney, Ted Smith. [5] Dustin Schroeder, Jerry Koontz, Chuck Hotze, Brett McCutcheon. [6] Jim Boyd, W.C. Litzinger. [7] Tom Horvat, Frank Klasnick. [8] Mike Pidlisecky, Anthony Coe. [9] Randy Hollinger, Robert Simon, Frank Butterfield, Arden Fuller. [10] John Hooker, Ed Building-Products.com
Burke. [11] Tony Saad, Jean Marc Dubois. [12] Gary Hazelwood, Rusty Carroll, Kerlin Drake. [13] Bert McKee, Dan Kukol. [14] Deedee Graham. [15] Bob Lambert, Harold Unteriser, Patrick Shabal, Patrick Slarko. [16] Romel Bezerra, Niklas Karlsson. [17] R.T. Thomas, Steve Conboy. [18] Chris Hedlund, Bill Naumann, Rick Kapres. [19] Greg Ciampa, Will Scott, Marty Fajerman. [20] Scott Cathcart, Carol Kelly, Lynn Goode. February 2010 Building Products Digest
47
CLASSIFIED Marketplace
Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set the 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. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o BPD. Names of advertisers using a box number cannot be released.
HELP WANTED
Are you interested in success and growth? Boise Cascade’s Building Materials Distribution (BMD) may be the place for you. While our company, like everyone in our industry, has been affected by the downturn in the housing market, we’ve stuck with our basic strategy; remained committed to our customers, suppliers, and employees, and continued to invest in our growth and success. Our future is solid and bright. Our strategy is to grow in existing markets and expand to new markets. In order to accomplish these objectives, we are looking to strengthen our team. We will do this in two ways: First, we will continue to provide resources and opportunities so existing employees can grow and be successful; and second, we are interested in attracting and hiring new people to help us grow in all aspects of our operations in sales, management, operations, purchasing, etc. If you are interested in joining our team, visit our website at www.bc.com/careers to learn more about our company and current job openings. If you’d like to learn more, please contact us by faxing or emailing your interest to 208331-5886 or BMDHR@BoiseBuilding.com. We’d like to hear from you!
HELP WANTED
SALES LEADERS WANTED: Established moulding manufacturer looking for commission sales leaders to represent our products. Full time/part time. Great territories available. Successful candidate will be a self-starter with hardwood moulding sales experience. 5% commission. We have excess capacity with our 15 moulders and are looking to fill it! Email resume to rogerstevens@asihardwood.com.
LUMBER TRADER We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation. 60% split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.
WANTED TO BUY
WANTED TO BUY
WANTED: LUMBERYARDS FOR SALE. We have a growing list of clients asking for yards to purchase. We are business brokers as well as financial advisors to the lumber & building material industry. We will prepare a marketing package that will create enthusiasm internally and externally. Contact Philip Arsenault of American Business Consulting at (508) 864-7500. See our website at www.amerbusconsulting.com.
WE BUY AND SELL PANEL STRIPS
Plywood, OSB, particleboard and MDF by the truckloads. Lumber Source, Phone (800) 8741953, Fax 888-576-8723, email LumberSource@worldnet.att.net.
WANTED TO BUY
FOR SALE
CARPENTER PENCILS
7,000 at 16¢ each A customer “MUST HAVE” tool for easy installation! Snugly fits over joists to free your hands to place and fasten deck boards.
Two sizes provide consistent deck board spacing – 1/8” gap for most wood 3/16” gap for most composites
888.988.1390
48
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Building Products Digest February 2010
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Building-Products.com
DATE Book
Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.
Illinois Lumber & Material Dealers Assn. – Feb. 9-10, convention, Peoria Civic Center, Peoria, Il.; (800) 252-8641; www.ilmda.org.
Wisconsin Retail Lumber Association – Feb. 10-11, annual convention & meeting, Kalahari Resort & Convention Center, Wisconsin Dells, Wi.; (262) 250-1835; www.wrlamsi.com. Florida Hardware Co. – Feb. 13-14, market, Ramada Celebration, Kissimmee, Fl.; (904) 783-1650; www.floridahardware.com.
South Dakota Retail Lumberman’s Association – Feb. 16-17, annual convention, Best Western Ramkota Hotel & Conference Center, Sioux Falls, S.D.; (605) 665-5089; www.sawbucks.us.
Construction Safety Council – Feb. 16-18, annual safety conference & Expo, Donald E. Stephens Convention Center, Rosemont, Il.; (800) 552-7744; www.buildsafe.org.
Northeastern Retail Lumber Association – Feb. 16-18, blueprint readying & estimating classes, Best Western Carriage House, Watertown, N.Y.; www.nrla.org. National Frame Building Association – Feb. 17-18, frame building expo, Kentucky Convention Center, Louisville, Ky.; (800) 5576957; www.nfba.org.
American Fence Association – Feb. 17-19, FenceTech & DeckTech, Orange County Convention Center, Orlando, Fl.; (800) 822-4342; www.americanfenceassociation.com.
National Wooden Pallet & Container Association – Feb. 20-23, annual leadership conference, Loews Portofino Bay Hotel, Orlando, Fl.; (703) 519-6104; www.nwpca.com.
National Roofing Contractors Assn. – Feb. 22-24, annual convention, New Orleans, La.; (847) 299-9070; www.nrca.net.
Long Island Lumber Association – Feb. 23, Microsoft Essentials seminar, Super Enterprises, Melville, N.Y.; www.nrla.org.
North American Wholesale Lumber Assn. – March 7-11, University of Industrial Distribution, University Place Conference Center & Hotel, Indianapolis, In.; (800) 527-8258; www.nawla.org. American Institute of Timber Construction – March 8-9, annual meeting, Lago Mar Resort & Club, Ft. Lauderdale, Fl.; (303) 7929559; www.aitc-glulam.org.
Wood Technology Show – March 9-10, Oregon Convention Center, Portland, Or.; (800) 933-8735; www.woodwideweb.com.
Southern Cypress Manufacturers Association – March 10, annual meeting, Renaissance Hotel, Tampa, Fl.; (412) 323-9320; www.cypressinfo.org.
Northwestern Lumber Association – March 10-11, Nebraska lumber dealers convention, Embassy Suites, La Vista, Nb.; (763) 544-6822; www.nlassn.org. Hardwood Manufacturers Association – March 10-12, national conference & expo, Renaissance Hotel, Tampa, Fl.; (412) 8290770; www.hmamembers.org.
ENAP Inc. – March 11-12, annual meeting & show, Marriott Downtown, Louisville, Ky.; (845) 564-4900; www.enap.com.
National Lumber & Building Material Dealers Association – March 15-17, legislative conference & green building forum, Marriott, Washington, D.C.; (800) 634-8645; www.dealer.org.
Window & Door Manufacturers Assn. – March 15-18, legislative conference, Washington, D.C.; (800) 223-2301; www.nwwda.org.
Capitol Industrial Woodworking Expo – March 18-19, Fredricksburg Expo & Conference Center, Fredricksburg, Va.; (828) 459-9894. Blish-Mize Co. – March 19-20, market, Overland Park Convention Center, Overland Park, Ks.; (800) 995-0525; www.blishmize.com.
True Value Co. – March 19-21, spring market, McCormick Place, Chicago, Il.; (773) 695-5000; www.truevaluecompany.com.
Progressive Affiliated Lumbermen Co-Op – Feb. 23-25, annual conference & buyers mart, Rosen Plaza Hotel, Orlando, Fl.; (800) 748-8900; www.pal-coop.com.
Florida Building Material Association – Feb. 24-26, winter education conference, One Ocean Resort Hotel & Spa, Atlantic Beach, Fl.; (352) 383-0366; www.fbma.org.
Appalachian Hardwood Manufacturers Association – Feb. 24-28, annual convention, Long Boat Key Club, Long Boat Key, Fl.; (336) 885-8315; www.appalachianwood.org. Western New York Lumber Dealers Assn. – Feb. 25, customer service seminar, Radisson Hotel, Rochester, N.Y.; www.nrla.org.
Orgill Inc. – Feb. 25-27, spring market, Orange County Convention Center, Orlando, Fl.; (901) 754-8850; www.orgill.com.
Greenprints – March 1-2, conference & show, Sheraton Downtown, Atlanta, Ga.; (404) 872-3549; www.greenprints.org.
Massachusetts Retail Lumber Dealers Assn. – March 2-4, blueprint reading & estimating classes, Courtyard Boston Raynham, Raynham, Ma.; www.nrla.org.
Michigan Lumber & Building Materials Association – March 3-4, Pro Building Showcase, Soaring Eagle Casino & Resort, Mt. Pleasant, Mi.; (517) 394-5225; www.mlbma.org. Lumbermens Merchandising Corp. – March 3-6, annual meeting, Salt Palace Convention Center, Salt Lake City, Ut.; (610) 2937000; www.lmc.net.
Northwestern Lumber Association – March 4-5, Iowa lumber convention, Marriott, Coralville, Ia.; (763) 544-6822; www.nlassn.org. HDW Inc. – March 6-7, spring dealer market, Jackson Convention Center, Jackson, Mi.; (318) 686-8527; www.hdwinc.com.
Long-Lewis Hardware – March 6-7, market, Montgomery Civic Center, Montgomery, Al.; (205) 322-2561; www.long-lewis.com. Building-Products.com
February 2010 Building Products Digest
49
IDEA File More Than Window Dressing
ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].
Anthony Forest Products [www.anthonyforest.com] .................25
Arch Wood Protection [www.wolmanizedwood.com].........Cover I Biewer Lumber [www.biewerselect.com].......................................3 California Timberline........................................................................4
Capital [www.capital-lumber.com]................................................40 Coastal Plywood [www.coastalplywood.com].............................43 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................35
Deck-It Spacers [www.woodpileproducts.com] ..........................48
Cole Hardware’s signature promotions are works of art. Literally. The San Francisco, Ca., chain’s four locations use imaginative window displays— brooms hung diagonally for Halloween, a “Louvre” exhibit featuring famous artwork recreated in hardware, a farmer’s market filled with colorful “produce,” and shiny disco balls for the holidays—to bring in customers and boost sales. “Everything we put in there, we have to sell,” said employee Noelle Nicks, who’s been in charge of window displays for the past 10 years. She came to Cole after working as an engineer at a large firm, but has no art training. Today, her business card reads “Visual Merchandising Manager & Curator of All Things Hardware.” For a farmer’s market window, Nicks said, “we actually made fruits and vegetables from hardware,” though galvanized tubs had to stand in for bushel baskets. “You know the swirl fluorescents? There’s one in orange, so we put green zip ties on so they looked like carrots.” In the Louvre window, yellow-edged saw blades became flower petals in a recreation of Van Gogh’s “Sunflowers” painting. “It’s all about putting the fancy with the mundane,” she said, “the coffee press next to the drain strainer.” Rick Karps, who owns Cole with his 93-year-old father, said that before Noelle took over the job, an outside vendor made sure the windows were “clean, filled with product in a pleasing manner, but boring.” He said customers now look forward to the changing displays and even offer suggestions for future installations. Ideas from displays are also used in other promotional materials. Van Gogh’s vase of sunflowers became a peel-off coupon (for 50% off an item of $50 or less) that appeared on the cover of a local phone book. But Cole hasn’t stopped at window displays. Another recent promotion delivers special coupons and discounts to the cell phones of customers who sign up for the text service. Frequent shopper club members receive special postcards with money-savings opportunities each month, a copy of the Hardware Hotline newsletter, and a 5% annual dividend on purchases. 50
Building Products Digest February 2010
Elder Wood Preserving [www.elderwoodpreserving.com] ........37
Enduris [www.enduris.com] ............................................................5
Fasco America [www.fascoamerica.com]....................................26
Fletcher Wood Solutions [www.tenonusa.com] ............................9
Great Southern Wood Preserving [www.yellawood.com] ............7 GRK Fasteners [www.grkfasteners.com].....................................34 Hankins Inc. [www.hankinsinc.com] ............................................49
Ipe Clip Co., The [www.ipeclip.com].............................................44
Lumbermens Association of Texas [www.lat.org] ......................23
Master Mark Plastics [www.rhinodeck.com]................................28
Matthews Marking Products [www.matthewsmarking.com] ......30
Maze Nails [www.mazenails.com].................................................29
Osmose [www.osmose.com] ...............................................Cover II Redwood Empire [www.redwoodemp.com].................................27 Richardson Timbers [www.timbersonline.com] ..........................41
RISI [www.risiinfo.com/crows] ......................................................45 Roseburg Forest Products [www.rfpco.com] ..............................21 Selkirk [www.selkirkcedar.com]....................................................39
Simpson Strong-Tie [www.strongtie.com]...................................19
Siskiyou Forest Products [www.siskiyouforestproducts.com] .33
Sunbelt [www.sunbeltracks.com] .................................................42 Universal Fastener Outsourcing [www.911-nails.com] ..............32
Viance [www.treatedwood.com] ...................................................13
Western Red Cedar Lumber Assn. [www.wrcla.org] ........Cover IV
Wynndel Lumber [www.wynndellumber.com].............................31
Building-Products.com
5
ways to increase your profile among customers and prospects.
Select the best advertising vehicle for your company to target-market a particular region or market segment—or choose multiple publications to reach the entire industry, nationwide.
MERCHANT
FOCUS ON WESTERN WOODS VIRTUAL MEETINGS LUMBERYARD AUCTIONS
The
JANUARY 2010
Magazine
THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
Seeing is believing buying
Learn to turn your proposals into sales with Simpson Strong-Tie® DeckTools Software®. Visit www.strongtie.com/decktools or call (800) 999-5099. DeckTools version 3.0 is available now. See website or call for details.
Strong-Tie Company Inc. DT09
88-year-old trade magazine reaches LBM dealers and wholesalers West of the Rockies. The Merchantt Magazine is primarily a paid publication, ensuring high readership.
BPD
Building Products Digest.
Imagine showing a prospective customer a picture of their dream deck—and not just a drawing or sketch, but a full-color, 3D image they can look at from any angle. DeckTools Software®, a sales, design and estimating software program for decks, makes it easy for deck builders and suppliers to create one-of-kind deck designs right from their laptops. Customize nearly every detail, from the deck shape and railings to materials, connectors and fasteners, while quickly generating plans, proposals and material lists.
©2009 Simpson
The Merchant Magazine.
Come see us at IBS booths C755 and C955
FOCUS ON SOUTHERN PINE WESTERN WOODS LUMBERYARD AUCTIONS
PRESENT
BUILDING PRODUCTS DIGEST
TRADERS’ PREVIEW
2009
PLANNING GUIDE FOR THE
NAWLA TRADERS MARKET
®
JANUARY 2010
INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS
28-year-old sister magazine reaches LBM dealers and wholesalers East of the Rockies. BPD’s controlled circulation guarantees it reaches every dealer and wholesaler in the South, Midwest and Northeast.
Seeing is believing buying
Traderʼs Preview: NAWLA Traders Market AND
Building Products Digest
Each year, a special supplement targets LBM buyers in conjunction with each fall’s NAWLA Traders Market. The supplement is inserted into the October issues of both BPD and The Merchant, providing circulation of over 21,000. Discounted advertising rates include an expanded company and booth listing.
Imagine showing a prospective customer a picture of their dream deck—and not just a drawing or sketch, but a full-color, 3D image they can look at from any angle. DeckTools Software®, a sales, design and estimating software program for decks, makes it easy for deck builders and suppliers to create one-of-kind deck designs right from their laptops. Customize nearly every detail, from the deck shape and railings to materials, connectors and fasteners, while quickly generating plans, proposals and material lists. Learn to turn your proposals into sales with Simpson Strong-Tie® DeckTools Software®. Visit www.strongtie.com/decktools or call (800) 999-5099. DeckTools version 3.0 is available now. See website or call for details.
©2009 Simpson
Come see us at IBS booths C755 and C955
Strong-Tie Company Inc. DT09
Deluxe Industry Calendar of Events.
Sponsored by the North American Wholesale Lumber Association November 5-7 • Hyatt Regency Hotel, Chicago, Il.
The Deluxe Industry Calendar of Events is packed with hundreds of industry events, encouraging buyers to retain and constantly refer to it throughout the year. Consequently, each month’s sponsor receives a full month of exposure. The full-color, 12-month wallhanging calendar is inserted into the December issues of both BPD andThe Merchant , providing a circula7 tion of 21,000+.
Building-Products.com.
The same LBM focus as our monthly magazines, but news is updated daily to keep industry professionals coming back, multiplying the number of impressions your advertisement will leave. A range of sizes are offered, all linking back to your website.
For rates and more information, contact Alan Oakes or Chuck Casey at (949) 852-1990 ajoakes@aol.com • ccasey@building-products.com
2010
The Merchant Magazine Sunday
14 14-16 International Home & Housewares Show, Chicago, Il. Daylight Savings Time Begins
28 Palm Sunday
Tuesday
2
1-2 Greenprints, Atlanta, Ga. 1-2 Western Wood Preservers Institute, winter meeting, Portland, Or.
7-11 North American Wholesale Lumber Association, University of Industrial Distribution, Indianapolis, In.
21
Monday
1
BPD–Building Products Digest
Wednesday
3
3-4 Michigan Lumber & Building Materials Association, show, Mt. Pleasant, Mi. 3-4 National Retail Federation, retail innovation & marketing conference, San Francisco, Ca. 3-6 Lumbermens Merchandising Corp., annual meeting, Salt Lake City, Ut.
Thursday
4 4-5 Northwestern Lumber Association, Iowa lumber convention, Coralville, Ia.
5-7 Home Shows, Springfield, Il.; Dallas, Tx.
6-7 HDW Inc., spring market, Jackson, Mi. 6-7 Long-Lewis Hardware, market, Montgomery, Al.
11
12
13
9
8-9 American Institute of Timber Construction, annual meeting, Ft. Lauderdale, Fl. 8-9 Western Wood Products Association, annual meeting, Portland, Or.
9-11 Wood Technology Show, Portland, Or.
10 Southern Cypress Manufacturers Association, annual meeting, Tampa, Fl. 10-11 Northwestern Lumber Association, Nebraska lumber convention, La Vista, Ne. 10-12 Hardwood Manufacturers Association, conference & expo, Tampa, Fl.
15
16
17
18
St. Patrickʼs Day
18-19 Capitol Industrial Woodworking Expo, Fredricksburg, Va.
15-17 National Lumber & Building Material Dealers Assn., legislative conference & green building forum, Washington, D.C. 15-18 Window & Door Manufacturers Association, legislative conference, Washington, D.C.
22
23
24
22-25 National Wood Flooring Association, conference & expo, Washington, D.C.
23-24 American Architectural Manufacturers Assn., southeast region spring meeting, San Antonio, Tx. 23-27 Moulding & Millwork Producers Association, annual meeting, Monterey, Ca.
24-26 Kentucky Forest Industries Assn., annual meeting, Bowling Green, Ky. 24-26 North American Wholesale Lumber Association, regional conference, New Orleans, La. 24-27 JLC Live Show, Providence, R.I.
29
30
31
March
29-31 International Wood Composites Symposium & Technical Workshop, Seattle, Wa.
Passover Begins
Saturday
6
8
10
Friday
5
11 Los Angeles Hardwood Lumbermanʼs Club, golf tournament, Chino, Ca. 11-12 ENAP Inc., annual meeting & show, Louisville, Ky. 11-12 Mountain States Lumber & Building Material Dealers Association, expo, Denver, Co.
12-14 Home & Remodeling Shows, Dubuque, Ia.; Portland, Or.; Reading, Pa.; Tacoma, Wa.
19
20
19-20 Blish-Mize Co., spring market, Overland Park, Ks. 19-21 Home Shows, Mankato, Mn.; Fort Worth, Tx. 19-21 True Value Co., spring market, Chicago, Il.
20-21 Home & Design Shows, Costa Mesa, Ca.; Maplewood, Mn.
25
26
27
25-27 Redwood Region Logging Conference, Ukiah, Ca. 25-28 Ace Hardware Corp., spring market, New Orleans, La.
26-27 Amarillo Hardware, market, Amarillo, Tx. 26-28 Home & Builders Shows, LaGrange, Il.; LaCrosse, Mn.
Show dates are subject to change. Contact the sponsor for more information. Please see pages 2-3 for phone numbers. March 16 – Advertising & Editorial Deadline for Building Products Digest & The Merchant Magzineʼs “Pressure Treated Wood” Special Issue
February S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
April S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
For the latest industry news and to download free event photos, visit www.building-products.com
BPD
Building Products Digest
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