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FOCUS ON SOUTHERN PINE WESTERN WOODS LUMBERYARD AUCTIONS

Building Products Digest

JANUARY 2010

INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS

Seeing is believing buying

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BPD Special Features 9 FEATURE STORY LUMBERYARD, INVENTORY AUCTIONS

10 INDUSTRY TRENDS BIGGEST CHANGES OF LAST 25 YEARS

12 MANAGEMENT TIPS TURN A SEMINAR INTO A WEBINAR

14 SPECIAL FOCUS: SOUTHERN PINE 18 COMPETITIVE INTELLIGENCE FIFTH-GENERATION GROWTH SPURT

24 PRODUCT SPOTLIGHT LOW-SLOPE ROOFING

26 SPECIAL FOCUS: WESTERN WOODS 39 MARGIN BUILDERS

Building Products Digest

January 2010

Volume 28 Number 11

Online

In Every Issue 6 TOTALLY RANDOM 20 OLSEN ON SALES 22 GREEN RETAILING 25 MOVERS & SHAKERS 34 FAMILY BUSINESS 38 ASSOCIATION UPDATE 40 NEW PRODUCTS 43 IN MEMORIAM 44 CLASSIFIED MARKETPLACE 45 DATE BOOK 46 IDEA FILE 46 ADVERTISERS INDEX

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GREENER WINDOWS

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Building Products Digest January 2010

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TOTALLY Random

By Alan Oakes

Nothing in life is free IRST, A BELATED

HAPPY NEW YEAR. I hope that you had time to enjoy the holidays with your families and are ready for the challenges of a new year. In my native England we have a custom of opening the front and back door to let the old air out and the new air in. As of midnight December 31, that door should be open for a long, long time! There doesn’t seem to be any industry that has not had challenging business results in 2009, but I have been encouraged in the last few weeks at the small signs of optimism in our industry. The truth is, without optimism and belief, what are we left with? A negative environment only breeds further negativity. The challenge this country faces is that the negative barometer is set too high! We must find a way to turn the switch that will start us all getting back to how it was—or at least somewhere in the middle of then and now. We often debate in our office what we can do better or more of to help our readers and advertisers. I am sure that is a debate held in every company at some time or another. One of the comments that invariably comes up—mostly from the sales force—is let’s offer free this and free that. Now, nothing gets me more excited than trying to benefit our customers, but I have learned over many years that giving something for nothing is just not a good idea. In fact, it’s the worst business decision you can make. It is tempting when times are tough, but once you start down that road, you can never get anyone to pay for today’s freebies in the future. Yes, we all see our competitors do stupid things (I hear from you on desperate pricing all the time), but I have yet to see a company succeed with such a strategy in the long term. I remember being trained that you can always go up, but you can’t come down. When you offer something today, it will be remembered and you will negotiate it every time. The salespeople who suggest giving something away don’t get hit in the pocket, so for them it’s an easy suggestion to make. What does gets hit are your margins. And they never recover! To me, there are three issues that you need to deal with. First, teach your sales team to sell. There are too many people in this industry out there selling who have not been adequately trained to sell. The goal of sales is to get the order—not at all costs, but to make sure both parties are happy signing on the dotted line and will be happy to do business together in the future. Nothing comes or should come easy. So buyers need to be sold, objections overcome. You can talk all you want about your last golf game or vacation, but unless you walk out with an order or have moved the potential sale further up the funnel, you have failed. I just sense that the current economic mess gives power to negativity, to accept that it’s okay not to have the order. Following every customer contact, salespeople must be self-critical, strategically analyzing what they did or did not do and holding themselves accountable. Don’t be content with a no! We can blame our troubles on the economy or our stupid competitors or…, but how about we blame ourselves? Second, years ago I heard the saying that when you offer something for nothing you entice cheap customers. And we all know what they are like, right? They are the ones that nitpick on everything, negotiate every cent, and are never happy. A free lunch isn’t free; it just cuts your profits and makes you negotiate every order. Third, think through your unique selling advantages. And if you don’t have any, you have a much bigger problem than this column can solve. Differentiate, differentiate, differentiate! If you already possess distinct advantages, let your customers know what they are—or do you assume they know already? Don’t take anything for granted. Value-add your products. Offer services that no one else offers. But don’t give them away. Just remember: charging more requires a higher level of sales and marketing skills, and, frankly, you might not have the right people in place today to do this. I have spent my time in every business I have run breaking down numbers and understanding how every line on my P & L has been derived. But at the end of the day, the top line, the gross profit line, and the bottom line will tell you all you want to know. When the comparative percentages change for the worse, you know you have issues. This year will again be challenging, but I think we are at the start of the long road up. Make sure your company is prepared for the turnaround and get back to doing business the right way! Alan Oakes Publisher ajoakes@aol.com

Building Products Digest January 2010

BPD

Building Products Digest www.building-products.com

A publication of Cutler Publishing

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

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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SOUTH, MIDWEST & WEST Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com NORTHEAST Paul Mummolo 404 Princeton Ave., Brick, N.J. 08724 Phone (732) 899-8102 Fax 732-899-2758 mummolop@comcast.net ONLINE Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com. CLASSIFIED MARKETPLACE David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

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BUILDING PRODUCTS DIGEST is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872, (949) 852-1990, Fax 949-852-0231, www.buildingproducts.com, by Cutler Publishing, Inc. (a California Corporation). It is an independently owned publication for building products retailers and wholesale distributors in 37 states East of the Rockies. Copyright®2009 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. BPD reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

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January 2010 Building Products Digest

FEATURE Story

Going, going, gone…

Lumberyard auctions dispose of inventory, properties

and surplus inventory have become a sure sign of the economy’s effect on lumber and building material dealers and distributors. “This is a buying opportunity and very indicative of a major trend in the market today,” said Joshua Olshin, president of auctioneer Tranzon Integrated Property Group. “Banks are not the only ones selling properties in what might be referred to as the current buyer’s market.” On Dec. 5, Vogel Auctions presided over the sale of Monticello Lumber’s building and property in Monticello, In. The store had already liquidated its inventory after closing Nov. 15. On Dec. 9, The Auctioneers Group oversaw a complete business liquidation of Newmeyer Lumber, Rahway, N.J. Up for sale were inventory, yard and office equipment, and warehouse supplies. On Dec. 12, Kimble & Ratliff auctioned off excess inventory and equipment from Meyer Lumber, Oskaloosa, Ks., and King City Lumber, King City, In. King bought Meyer in September and changed its name to Oskaloosa Lumber. On Dec. 22, Rosen Systems conducted an online auction of the inventory of United Building Products’ final location in Dallas, Tx. The roofing products firm started 20 years ago and was based in Albuquerque, N.M. In mid-December, Tranzon Integrated Property Group started auctioning off the first of 25 surplus properties in 14 states as part of the post-bankruptcy liquidation plan for Stock Building Supply. “On behalf of our client, we have chosen the auctionprocess as the most efficient method to market and sell a large portfolio of properties in order to maximize proceeds UCTIONS OF SHUTTERED FACILITIES

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in a timely manner,” said Ken Zakin, senior managing director of Newmark Knight Frank, an international real estate advisory firm. “Tranzon is a leading auctioneer and we expect these auctions to allow our client an acceptable exit given a difficult climate.” The Gores Group, a private equity firm based in Los Angeles, Ca., bought 51% of Stock, while parent Wolseley kept a 49% interest in the company. Of the chain’s more than 200 locations, only 100 in 19 markets were kept open. The Stock auctions consist of shuttered facilities, as well as several lots that were acquired for expansion but never used. The first set of auctions, held Dec. 15 and 16, included a nine-acre lot located in Salisbury, Md.; a 210,000-sq. ft. warerehouse/manufacturing/retail facility in Acworth, Ga.; a 131,924-sq. ft. industrial facility on more than 40 acres of land in Sanford, N.C.; a 50,000-sq. ft. manufacturing building on four acres in Durham, N.C.; a 34,400-sq. ft. warehouse/manufacturing facility on 11 acres in Hendersonville, N.C., and a 51,942-sq. ft. office/warehouse with covered storage on 20+ acres in Timmonsville, S.C. The next round of Stock auctions will be held the middle of this month, disposing of property in Oldsmar, Pasco County, and Spring Hill, Fl.; Waterford, Mi.; Forest Lake and S. St. Paul, Mn.; Dayton, Oh.; Paradise and Kinzer, Pa.; Beaumont, Tx., and Delavan and Green Bay, Wi., as well as in Wyoming, Idaho, Utah and California.

OUT OF STOCK: Downsized Stock Building Supply is going the auction route to find quick buyers for 25 closed or excess properties in 14 states, including (upper left) a 50,000-sq. ft. facility in N. Durham, N.C., and (above) a 210,000-sq. ft. warehouse/manufacturing plant in Acworth, Ga. January 2010 Building Products Digest

INDUSTRY Trends By Loren Krebs

The last 25 years

The biggest changes to how we do business

S WE SLOG OUR WAY through the recession of 2008-2009, hoping for an end some time in 2010, there’s no question that the downturn has changed the way most of us do business. We have reduced inventories to the bone, cut staff to bare minimums, squeezed efficiencies from thin air, and worked harder than most of us are accustomed to. Staying profitable has taken a lot of blood, sweat and tears. The truth is, though, the lumber business has gone through many changes in the last 25 years and we have been forced to adapt or fail. Lions are always waiting to thin the herd by taking down the slow and the weak. Our industry is littered with the carcasses of producers, distributors and retail suppliers who failed to react to change. Some change is positive and helps us do business more efficiently. Some change is threatening and forces us to question how we do business. And some change is benign—you can watch it and react appropriately when the time is right. Identifying change after the fact is usually pretty easy. Recognizing and reacting to change early in the process is more difficult. The following list of changes have taken place in the past 25 years and each has changed the way we do business.

The Spotted Owl. When the recession of the early 1980s finally burned itself out, we enjoyed a decade

Building Products Digest January 2010

of favorable conditions in the lumber business. New construction and remodeling had rebounded nicely and the material pipeline remained full. In the late ’80s, we began to see newspaper accounts about the plight of the spotted owl—a plight that was increasingly being played up by environmental activists. In 1991, District Court Judge William Dwyer cancelled 75% of Forest Service timber sales, a move that would constrain or eliminate much of the timber supply our industry was dependant upon. Many mills were forced to find new sources of raw material and those that could not closed their doors. We continue to feel the repercussions some 20 years later.

The first commercially viable fax machines began to dribble into the market in the early ’80s. They were big, slow and noisy, and they smelled like a small electrical fire as they laboriously cranked out text-covered pages that came mysteriously through the wires. The print quality was horrible, but even a bunch of lumber guys could recognize this new machine as gamechanging technology. Our industry, to its credit, was an early adopter of fax machines and the efficiencies they brought to communication.

2. The Fax Machine.

Lowe’s and Home Depot began to rapidly expand in the 1980s and can

3. Big Box Stores.

now be found in nearly every market. The one-stop-shopping model for the do-it-yourselfer was embraced by many customers and it wasn’t clear how this would affect the traditional lumberyard. Many retailers were forced to find ways to compete, and those that could not are no longer in business. Wholesale suppliers, too, had to learn how to deal with a new breed of hard-nosed buying and supplier policies they were unfamiliar with. Many wholesalers were forced to make a decision: do business with the big boxes or do business around them? Companies came up with a variety of strategies to survive and thrive in the big box era. Like the fax machine, we lumbermen embraced the cell phone as soon as it was small enough to slip comfortably into a pocket. Many of us remember the days of circling the block and looking for a parking spot near a phone booth in order to call the office. Today, if four lumbermen are traveling together in a car, it is not unusual for all four to be on their phones. We often buy material we have never seen and we often sell it to someone we have never met. Our business is truly a business of communication and the

4. Cell Phones.

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cell phone has allowed us to communicate better.

Most of us use email today and recognize it as another communication tool that has changed the way we do business. (I do, however, know of some curmudgeonly holdouts who prefer to communicate on the phone.) For many things, though, email is the best tool available. Suppose you have a truckload of very expensive clear cedar arrive in your yard and you discover that the side of one unit has been raked and pillaged by an errant forklift driver. You can take a digital picture and immediately send it to your supplier with a note that says, “What’s up with this?”

5. Email.

Generally speaking, other than a few cutting edge, spike-haired, tattoocovered geeks, we lumbermen have been slow to adopt the Internet as a way to put deals together. One reason for this is there are a lot of moving parts in most lumber transactions. Putting together a good deal for buyer and seller works better when both parties are fully engaged. It’s pretty hard to add a truckload of lum-

6. The Internet.

ber to your “shopping cart.” However, most of us have company websites, and this is another great way to communicate and share information.

One of the biggest changes affecting the way we do business is the continuing shrinkage of our producer base. As mills grapple with environmental constraints, lack of harvestable timber, and the current lackluster economy, many have been forced to curtail or close indefinitely. Traditional supply chains have been disrupted, and many suppliers are gone forever. This change is ongoing, and we all need to navigate through this minefield.

7. Shrinking Producer Base.

For many years we had few young people coming into our industry, but this trend has changed. You need only attend a show such as the N A W L A Traders Market to see the change. Some of us older guys are slowing down or calling it a day, and we have a new generation of lumbermen joining our fraternity. This group is bright, ambitious, aggressive, technologically savvy, and not afraid to work. They have changed—and will continue to

8. Young People.

change—our business.

Although no group has escaped entirely, retailers and contractors have been hit especially hard during the recent downturn. Companies have closed their doors in record numbers, and many of the survivors have circled the wagons, hoping for a 2010 recovery. There will tremendous opportunity for the survivors. So, get ready for the next 25 years. You can look forward to changing technology, changing supplier bases, changing customer bases, and a constantly changing economy. You’ll see competitors go out of business and new companies take their place. New products will come. Old products will go. Personnel changes— your own as well as those of your customers and suppliers—will affect your business. Don’t be caught like a deer in the headlights. When change happens, make decisions.

9. The 2008-2009 Recession.

– Loren Krebs began his career in the lumber business in 1969 and recently retired as purchasing department manager after 25 years wtih Disdero Lumber, Clackamas, Or. He can be reached at krebs@oregoncoast.com.

Phone: (870) 226-6850 • (870) 678-2277 • Fax: (870) 678-2522 Sparkman, Arkansas

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January 2010 Building Products Digest

MANAGEMENT Tips By Patricia Fripp

Hold your next meeting over the Internet

but travel budgets shrinking, more companies are turning to the Internet to stage their customer and employee presentations, meetings and seminars. Yet running a successful webinar has different requirements than delivering an in-person presentation. Here are tips to catch and keep a webinar audience: ITH TECHNOLOGY RISING

BEFORE YOU START, USE LOOPING SLIDES Once your audience tunes in, how do you make sure they are entertained and feel involved even before the event starts? The best way is with a series of looping slides. Looping slides are a great way to convey important information and to keep attendees entertained while waiting for

your presentation to begin. These slides need to communicate: • when the session will begin, • the conference dial-in number, • a photo, name and title of the presenter, • what the audience is going to learn, and • what to do in case of problems. You may also have quotes about the content they will be learning.

BE MORE VISUAL Be creative. Think Hollywood! Tell stories and give examples as you go through your program, the same way you would in person. However, your webinar needs more visuals to help engage the audience. Use more slides than with an in-person presentation. Add bullet points one at a time as you

REGIONAL associations have been at the forefront of the lumber industry’s entry into webinars, hosting sessions on topics such as OSHA regulations, forklift safety, customer service, sales, collections and certification. Northeastern Retail Lumber Association even maintains an online archive of past webinars.

Building Products Digest January 2010

“build.” Don’t present a list of all your points before you discuss them. Keep it simple, keep it moving, and interact often.

PLAN YOUR STRUCTURE Outline your presentation on paper or flip chart and then build the PowerPoint. You have to get “messy” before you get tidy! It is better to have fewer points and illustrate them well. Be sure you: • Introduce your objective. • Sell the benefits. • Explain the agenda and timing of your session. • Add any logistics and how they will interact with you.

OPEN WITH A GRABBER After a “grabber” slide, it’s up to you to engage your audience immediately with a powerful, relevant opening that includes the word “you.” Your grabber opening might be: • A catchy fact: “It may interest you to know Ferraris hold their value more than polo ponies! I first learned this lesson when…” • A startling statistic: “Did you know that if you had spent $1 million a day, every day since Jesus was born, you would not have spent a trillion dollars? Please keep that in mind as we strategize how to increase sales by only 5%…” • An intriguing challenge: “Ten years ago we were the market leaders. This year we are 13th. You are now in an exciting position to turn that around…” Grabber openings get the attention of your audience. Then it is up to you to keep it. Never start by saying, “Good morning.” Instead, say something like, “Welcome! You are in for a treat! You are about to learn how to…” As you introduce the session, sell the listeners on how they are Building-Products.com

going to benefit. Keep them glued. Remember, they can’t see you, so it is all too easy for them to answer their email or go get a cup of coffee.

INTRODUCE YOURSELF Once you have sold the session, you can introduce yourself if someone else is not doing it. Do not do it first. Just as with an in-person session, say something the listeners care about, and then they care about who you are.

FORGE A CONNECTION The most powerful communication combines both intellectual and emotional connections. Intellectual means appealing to educated self-interest with data and reasoned arguments. Emotion comes from engaging the listeners' imaginations, involving them in your illustrative stories by frequent use of the word “you” and from answering their unspoken question, “What’s in this for me?” Use a high you/I ratio. For example, don’t say, “I’m going to talk to you about webinars.” Instead, say something like, “In the next 56 minutes, you will learn the six secrets of making a webinar work, the four benefits of using webinars as part of your client interaction, and the three mistakes your competitors are making when they use them.”

BUILD IN INTERACTION Depending on the technology you are using, make sure you interact whenever logical. For example, stop and ask, “Based on what you have heard so far, what are your questions?”

USE MEMORABLE STORIES People rarely remember your exact words. Instead, they remember the mental images that your words inspire. Support your key points with vivid, relevant stories. Help them “make the movie” in their heads by using memorable characters, exciting situations, dialogue, and humor. With a combination of your examples and visuals, it will be a memorable presentation.

USE EFFECTIVE PAUSES Good music and good communication both contain changes of pace, pauses, and full rests. This is where your listeners think about what they have just heard. If you rush on at full speed to crowd in as much information as possible, chances are you’ve left your listeners back at the station. It’s okay to talk quickly, but whenever Building-Products.com

you say something profound or proactive or ask a rhetorical question, pause.

AVOID NON-WORDS Hmm—ah—er—you know what I mean—. On a webinar, this habit will only be emphasized. Are you doing it? Why not have a run-through and record yourself. As with in-person presentations, as Michael Caine says, “Rehearsal is the work, performance is the relaxation.”

REVIEW As with an in-person presentation, always review your key ideas. Then say, “Before my closing remarks, what are your questions?”

STRESS THEIR NEXT STEPS Be clear what their next logical steps should be. Send them off energized and focused.

CLOSE ON A HIGH Your last words linger. Make sure they are yours (don’t quote anyone else) and make sure they are powerful.

HAVE BACKUP COMPUTERS! Here is a practical suggestion that will pay off for you. Have two computers tuned in to the webinar. This way, if one computer freezes, you can

What’s a webinar?

A webinar, or “Web-based seminar,” is an interactive conference, meeting or presentation that is conducted on the Internet.

How can webinars be used in the LBM industry? • Sales meetings • Product knowledge classes • Employee training • Virtual roundtable discussions • New product/promotion announcements • Sales pitches • Association board/member meetings • Association-sponsored seminars

quickly get your second computer to the place where the first had frozen. It will already be tuned in to the webinar, so it only takes a few moments to get on with the show. With technology, you never know!

– Patricia Fripp is an executive speech coach, sales presentation trainer, and author of Get What You Want! Reach her at (415) 753-6556 or pfripp@fripp.com.

Southern Pine Customers Are Looking for YOU!

Southern Pine Council promotions generate thousands of inquiries from folks who want to know where to find Southern Pine materials. Our web site, www.southernpine.com, features an easy-to-use "where to buy" directory.

n I buy Where ca ine? P Southern

If you are a dealer or distributor of Southern Pine lumber products, add your company to our directory so that interested buyers can find you! The listing is FREE, and signup is easy. Just go to www.southernpine.com/joinlocator.

www.southernpine.com January 2010 Building Products Digest

SPECIAL Focus Southern Pine

Green Building

Southern pine is mighty fine W

construction markets expected to grow to $96-$104 billion by 2013, building professionals often look for new green products that will help them get a ITH GREEN BUILDING

piece of the green pie. Improving energy efficiency with products such as new windows and appliances has been the initial focus of green building markets; however,

Southern Pine Inspires Remodelers– Indoors and Outdoors

Repair and remodeling activity is generating some demand for building materials in the slowly recovering economy. Southern pine products are well suited for projects all around the home. Homeowners are learning that a wood floor adds comfort and value, not to mention being a healthier, allergyfree alternative to carpeting. Southern pine flooring, in a range of widths, grades and finishes, can enhance the look of any indoor space, no matter the décor. Wood is a natural insulator. The look of real wood for wall paneling and ceilings adds a dramatic flair to all rooms of the home, while contributing to energy efficiency. Southern pine patterns are readily available in long lengths to reduce splicing. Clear or semi-transparent finishes draw attention to southern pine’s distinctive grain. Knowing proper installation and maintenance for interior patterns can help dealers sell more specialty items. SFPA and Southern Pine Council offer comprehensive guides for both interior flooring and exterior porch flooring. PDF copies can be downloaded free from www.southernpine.com. A two-

Building Products Digest January 2010

part DVD program covers installation of both materials from start to finish. Dealers can obtain a free copy for their next employee training session by emailing info@southernpine.com and requesting AV80. SFPA also has three staffers, certified as installers by the National Wood Flooring Association, to answer questions dealers might encounter with customers. Ask at info@southernine.com.

ITS BEAUTY makes southern pine the ideal choice for interior remodeling projects.

builders and specifiers are beginning to look deeper inside their buildings by addressing structural products. They are discovering that simply using wood framing products, especially those that are locally sourced from sustainably managed forests, contribute significantly to being green. The U.S. Green Building Council recently held its annual Greenbuild International Expo and Conference in Phoenix. “Audiences at this show are getting smarter and more sophisticated as their knowledge grows,” says Russell Richardson, Southern Forest Products Association’s director of industrial markets. “Their questions have evolved from general and openended to more specific and performance-based inquiries.” Rather than wanting to know if a particular wood product is certified and sustainable, attendees want to know how much energy is consumed during the manufacturing process and the environmental impact of the product’s life cycle. It’s questions like these that have prompted the LEED rating system to conduct a pilot project to incorporate Life Cycle Assessment (LCA) into its rating system. “This is great for wood products,” Richardson reports. “LCA is where wood products truly outshine other building materials.” There remains the persistent debate over which forest certification system to use. Initially, there was much discussion over the differences between systems such as the Forest Stewardship Council and the Sustainable Building-Products.com

Forestry Initiative. As green building markets have evolved, alternative green building systems, such as Green Globes and ICC/NAHB 700, have come to the forefront, accepting all credible certification systems including, but not limited to, FSC and SFI. Even LEED is proposing to accept certification systems other than FSC.

The proposal is going through LEED’s approval process. It is clear that green building audiences are becoming smarter and more aware of products that appear to be “green” and those that really are green. Customers are learning to ask questions that relate to the on-theground environmental impacts prod-

ucts have, such as those revealed by the LCA tool. Rather than a mere subject for debate, forest certification systems are increasingly being recognized and used as a way to display the environmental attributes of wood products. As green building markets mature, the positive environmental story of wood will shine even brighter.

Model communities opt for raised floor construction

ESPITE A LACKLUSTER home construction market, builders and developers with plans (and financing) ready to go are looking for ways to make their next project stand out from the competition. Customers desire smaller, more energy-efficient homes, and renewable, sustainable, locally sourced wood products remain the material of choice. Across Southern coastal markets, the Southern Pine Council has actively promoted the merits of raised floor construction. Dealers can sell a third more lumber in a typical framing package for a raised floor home. Builders can often save time using the same crew to build the floor system that frames the rest of the house. Homeowners realize enhanced comfort, value and curb appeal. Expanded outdoor living areas inherent with a raised floor design include decks and porches, offering dealers more opportunities for treated lumber sales. “In flood-prone areas, homeowners also realize greater peace of mind, along with lower flood insurance costs every year,” notes Cathy Kaake, SFPA’s senior director of engineered & framing markets and a certified floodplain manager. Strong and versatile southern pine lumber, readily available in a wide range of grades and sizes, is one key ingredient to a successful project. Just ask Green Coast Enterprises of New Orleans. The developers of Project Home Again planned to build dozens of homes in the Gentilly neighborhood ravaged by Hurricane Katrina. Funded by a private foundation, plans called for displaced homeowners in the area to trade their properties for a new home, one built to withstand future storms. In turn, Green Coast would redevelop the destroyed proper-

Building-Products.com

DEVELOPER of Profect Home Again, a new subdivision for dispaced homeowners in New Orleans, looked to southern pine to build raised floor foundations and other features.

NEW ORLEANS’ Project Home Again featured storm-resistant raised floor homes, framed entirely with borate-treated southern pine. January 2010 Building Products Digest

ties into replacement homes for others wanting to return. Following consultations with architect John Schakai and the SFPA staff, plans for elevated, steel-framed homes soon transformed into raised woodframed structures. Pressure treatment with borates was added to all structural components as a long-term defense against termites and decay. Twenty attractive homes were built in twelve weeks. Each home features porches front and rear. Phase two of the project is moving into building more raised homes on exchanged lots throughout Gentilly. This effort continues to attract local publicity, inspiring other builders and property owners to investigate a raised floor home as an affordable, floodplain-friendly alternative to slab construction on a mound of fill. Builders are getting creative, too, learning ways to reduce foundation costs in a raised home. Again, wood is the answer. Treated wood pilings used in place of grade beams and concrete block piers have greatly reduced the cost and time required to complete a new home. Phase two of Project Home Again is using treated piling exclusively for its new homes, typically completing the foundation and framing in just four to five days. In the Baton Rouge area, architect Kevin Harris and developer Jeff

Southern Pine Suppliers Ready for Recovery The southern pine lumber industry has faced dramatic downturns before, but certainly nothing quite like the business climate of the last two years. Steady declines in housing starts— and consequently lumber demand— have affected mill operations to create an environment not seen since the early 1980s. The extension of federal tax credits to new homebuyers and those who are looking to move up has helped manage the massive national inventory of properties for sale. There will be no new demand for housing until a substantial portion of the millions of homes now on the market become occupied. Struggling financial and housing markets, high unemployment, stagnant personal income growth, and minimal exports continue to complicate the recovery picture. SFPA is taking aggressive steps to develop the best possible promotional strategy for moving forward. For nearly 100 years, SFPA has conducted a wide range of promotional programs and weathered every downturn. And since 1988, the Southern Pine Council has

Couvillion have hosted groups of seniors interested in an age-specific community tailored to their specific needs. A site plan for “The Gates of

aided lumber dealers with the tools they need to sell more lumber. Customers want what southern pine lumber has to offer: strength, treatability, and beauty, not to mention outstanding value. Manufacturers are responding to today’s challenging market and offering the newest preservative treatments; the most popular items in flooring, siding, ceiling and paneling patterns; framing lumber in a wide range of grades and sizes, plus engineered wood products. With mill operations in close proximity to major markets, special-order items can be quickly processed in most cases. Today, www.southernpine.com is a gold mine of information dealers can depend on for answers to customers’ questions and for locating product suppliers. Sourcing hard-to-find items can be just a few mouse clicks away. SFPA can actually send customers to dealers stocking southern pine products if dealers are listed among the nearly 700 already online in its product locator. Signing up is free for dealers at www.southernpine.com/joinlocator.

Burlington” was the result, and the 54lot development plans to break ground this spring on the first 24 raised floor homes. Development in other states of more “boutique neighborhoods” similar to the prototype near Baton Rouge means conversion of slab construction projects into housing starts that call for more lumber. Industry-supported grants are sponsoring these efforts. Events to be held for local dealers and builders offer a firsthand look at how a raised wood floor is the premium foundation option.

New Raised Floor Site

SFPA’s Richard Kleiner (left) reviews raised floor home plans with developer Jeff Couvillion.

Building Products Digest January 2010

Recently, SFPA and Southern Pine Council extensively overhauled the website www.raisedfloorliving.com. The site is now divided into two sections, addressing the needs of both homeowners and building professionals. Builders, architects and engineers experienced with raised floor construction are encouraged to list themselves in the online locator. Dealers then direct customers to the locator for finding professional help in designing and building a home. The search begins at www.raisedfloorlivingpro.com/find_dealer.py. Building-Products.com

COMPETITIVE Intelligence By Carla Waldemar

After five generations, it’s time to grow

FOURTH & FIFTH GENERATIONS: Marling Lumber is led by (left to right) David Marling, millwork & Janesville operations manager; Tom Marling, purchasing manager & Madison operations manager; Kurt Marling, c.e.o., and Brandon Marling, commercial manager.

N TRYING TIMES LIKE THESE,

a little history lesson can help. “A hundred-year-old company [like ours] has seen downturns before—the Great Depression and two world wars,” says David Marling, millwork manager of Wisconsin-based Marling Lumber. The business was launched by his great-great-grandfather in 1904 and his father, Kurt, now serves as c.e.o. David calls himself “a rookie”—a young, 10-year employee in the firm he grew up in—a company that’s seen it all and survived. No, scratch that: Make it “grown and prospered.” And this round is no different. “We’re getting ready for the rebound—we’re building for that. Good times,” he’s sure, “are coming back. “We’re different! No way are we hunkered down. We’re looking to the future.” Not just a pretty metaphor, Marling has seized the opportunity to expand and grow. It recently complet-

Building Products Digest January 2010

ed a 17,000-sq.-ft., $2-million HomeWorks showroom in Janesville, Wi., and relocated company headquarters to the site. “Our former headquarters in Madison,” half-an-hour distant, he notes, “was an 80-year-old building: worn out, inefficient. We’d run out of room. The new location gives us opportunity for growth, plus the ability to consolidate our operations under one roof—manufacturing, human resources, managers and such.” Marling also has operated a lumberyard in Janesville (and a second one in Madison) and a door plant in nearby Edgerton in addition to the original Madison HomeWorks, launched in 1996, and satellite HomeWorks showrooms opened in February in Waukesha and Green Bay, Wi. The manufacturing plant, which was the first in the region to produce hollow metal doors, turns out wall panels and more to add to the company’s offerings—and profits. But HomeWorks—a showroom we’ll visit in more detail in just a minute—was the big motivator in looking for a longterm anchor as Marling planned ahead, a habit it’s fostered for five generations and counting. “We decided that home improvement was the wave of the future, the way the market is going,” affirms David. “The traditional lumberyard of 50 years ago is a thing of the past. You’ve got to diversify to stay ahead, and [all-inclusive, one-stop-shopping] showrooms are the way to go. People—especially women, the decision-makers—have done research on the Internet. Now, they want to touch and feel the products.”

Furthermore, he predicts, “the current recession will result in a rearrangement: a sorting-out of manufacturers and suppliers. Some will drop out. So you’ve got to anticipate that in planning your showroom.” Thus, among its 100-plus Janesville employees, Marling has hired certified designers who can turn out complete home blueprints; others who can assist with kitchen, bath, and decking remodeling projects; and several who are uniquely schooled in demands likely to mushroom in the near future: handicap-access and aging-in-place specialists, who can advise commercial and home builders alike in matters from elevators and stairlifts to wheelchair-width aisles, knobs and grab bars. “You’ve got to diversify,” David seconds his own motion. And that can mean finding new partners. Marling’s new building adjoins a grain elevator, so to expand into lawn and garden products, the new site displays gondolas, gazebos and barbecues, while their neighbor handles plants and landscaping materials. “We’ve also partnered with a local flooring company,” David adds. “We choose partners that are like us—family-owned, three or four generations. And it’s been very successful for everybody involved,” he testifies. Marling also partners with its contractor customers, whom it refers to homeowners seeking installation. Monitoring consumer trends is vital, David maintains. So, picking up on the growing popularity of staycations, HomeWorks has pumped up its patio and deck capabilities, as well as indoor amenities such as fancy fireplaces. That’s in line with what Marling Building-Products.com

SHOWROOM DISPLAY features windows in a spinner, each trimmed out with different profiles and different species, including purpleheart (center) and zebrawood (far right).

has decided is most important for future viability, and that’s dealing directly with homeowners. “In the past, our business was almost 100% pro, and we still offer contractors special staff, services, pricing and credit terms,” he adds. But the new showroom was expressly designed to entice homeowners directly with elaborate displays, including a functioning kitchen, closet, bath and office cabinets, and energy-efficient products—another huge growth area. Marling has also fingered the pulse of the region’s demographic, and it’s—duh!—growing older. So the company has become a leader in new services, such as those handicap-access and aging-in-place features. To get the word to consumers that they’re welcome here, the company buys “all sorts of advertising, from print to TV.” But maybe the best ad was the new building itself, whose progress people noted daily as they passed it on the busy highway. Thinking ahead once again, Marling is wooing the younger, tech-savvy audience of today and tomorrow with use of Facebook and Twitter. Right now, while others falter, remodeling has kept the company solidly in the black. “Looking ahead, it’s been our focus for the past few years; today, it’s 80% of our business,” David says. When the company undertook its new building, it expressly added a seminar room to conduct classes—not only for its own employees, but also for its customers. Contractors can gain education credits in classes like coding changes and the stimulus package. Then these same pros are tapped as instructors in seminars for homeowners in everything from decking to energy-efficiency, which Building-Products.com

goes beyond window replacement to features they may not have considered, like re-insulation. “We’re out to inform them, not just sell the product,” David underscores. Competitors? Sure. Menards and Home Depot reside just down the road—“and they have their purpose,” David allows. “But our prices are the same, and sometimes even cheaper, because, with our various locations, we have buying power. Even more important is our knowledgeable customer service. Many of our employees are contractors who’ve hung up their hats, or former city inspectors. We’ll not only sell you something, but tell you how to install it, maintain it, and clean it. And if ever there’s a problem, we don’t hide. We say, ‘Come back to us.’” Marling treats those employees like family, giving them their say in decision-making. “We ask for their input because they’re the ones who deal with things, hands on. Many have been here 20, 30 years.” That’s David’s life plan, too. “My mom and dad never said I had to go into the business; I’m here because I love it. I’m a nostalgia guy, very sentimental. I like being part of history. Very few businesses can boast a fifth generation. That’s neat to be a part of it.” And the story doesn’t end here… Carla Waldemar cwaldemar@comcast.net

January 2010 Building Products Digest

OLSEN On Sales By James Olsen

So you’re telling me there’s a chance…

N THE MOVIE Dumb and Dumber, Jim Carrey plays Lloyd, a kind-hearted yet obtuse limo driver who falls instantly, madly in love with a passenger he drops off at the airport. Lloyd drives across country to reunite with Mary. She is confused by his attention and behavior, and wants to let him down easily, but—really—there’s no way.

Lloyd: I like you, Mary. I like you a lot. I want to ask you a question, straight out, flat out, and I want you to give me an honest answer. What do you think the chances are of a guy like you and a girl like me, ending up together?

Mary: Well, Lloyd, that’s difficult to say, I… we really don’t…

Lloyd: Hit me with it! Just give it to me straight. I came a long way just to see you, Mary. The least you can do is level with me. What are my chances? Mary: Not good.

Lloyd: You mean like not good like one out of a hundred? Mary: I’d say more like one in a million.

Lloyd: (Pause) So you’re telling me there’s a chance. (Pause) Yeah! (Pause, giving Mary a conspiratorial look) I read ya.

When we talk with customers there will be objections. We must maintain Lloyd’s innocence and sense of the possible; too many of us are so tied to our perceived reality that we get in our own way. When I traded lumber, we would sometimes get offers that seemed ridiculous. Buyers would often say, “I can’t take that to my mill. They won’t take that number.” Our response was, “Don’t say no for the sawmill.” More often than not, the deal was made. Similar negative conversations can play out in our heads as salespeople: “This guy hates me.”

Building Products Digest January 2010

“He only buys from…” “He always buys from the other guy.” “They’re always too cheap.” “I never sell this guy.” “They’ll hang up if I say that.” “He’ll never pay that price.” We don’t live in reality as salespeople, we create it. We cannot let our own negative attitudes or those of others affect how we sell. We are always positive, even in the face of what can seem to be insurmountable odds. When I traded at Forest City, we had Silver and Gold Circle traders. I remember like yesterday the first year I made Silver. Ray Haroldson, my boss, called me into his office. I was expecting a pat on the back and warm congratulations. Instead, Ray said, “You know, James, if you had put a couple more bucks a thousand (+$2/MBF) on everything you sold this year you would have gone Gold instead of Silver.” I left Ray’s office feeling he was the most unappreciative SOB I had ever met in my life. I was mad at him for weeks. My thought was, “You have no idea how hard I work just to get the prices I am getting!” I started thinking about what he had told me. I started to add a couple bucks over our list price to everything I promoted. And surprise of surprises, I started to get higher prices! (Unappreciative? Ray was just a great motivator!) My reality was tied to Cascade Empire’s list price (reality), when I should have made my own list price (reality). Is selling tough? Yes. Thank goodness! If it weren’t tough, we wouldn’t get paid great money to do it. It would also be deathly boring. Can selling make us crazy? If the great salespeople I know are any indication, yes. Embrace the insanity! We’ve already got enough reality. It’s even on TV now—ugh! What we need is more imagination, innocence and perseverance. Like our friend Lloyd. So the next time someone (especially us!) begins to fill our heads with (supposed and negative) reality, let’s shout the battle cry of great salespeople: So you’re telling me there’s a chance! James Olsen Reality Sales Training (503) 544-3572 james@ reality-salestraining.com

Building-Products.com

Great Southern Acquires Columbus Treating Plant

Great Southern Wood Preserving, Abbeville, Al., has acquired two former Columbus Lumber properties in Brookhaven, Ms., and plans to spend $5 million to re-open both by Feb. 1. “This is going to hit the fast track pretty quick,” said owner Jimmy Ranes. “We’re not going to let any grass grow under our feet.” GSWP bought Columbus’ wood treatment plant, its 11th, and the nearby Phillips mill, which will produce deck accessories, from Rex Lumber, Graceville, Fl. Rex took over Columbus on Nov. 6—almost two months after Bank of America foreclosed on the business. Rex retains the Columbus sawmill, which it hopes to re-open with the help of tax incentives and other financial assistance. “We’re in the very initial stage of trying to figure out what to do,” said Chuck Watkins, director of Rex Lumber. “The sale was very fast, and we didn’t have enough time to do the diligence we needed, so we’re doing that afterward.” Watkins said that stripping the Columbus mill and shipping equipment back to the company’s other facilities in Florida “is not in our plans.”

ProBuild Grows in Nashville

ProBuild Holdings, Denver, Co., has added a new truss and wall panel plant in Nashville, Tn. In addition, ProBuild is doubling the size of its Smyrna, Tn., facility to include a full-line lumberyard, millwork manufacturing plant, and gypsum distribution operation. “We are encouraged by our progress in the greater Nashville market and by the efforts of our people to meet the multiple and evolving needs of our customers,” said c.e.o. Paul Hylbert.

Depot Exec Pleads Guilty

A former manager at Home Depot corporate headquarters in Atlanta, Ga., has pleaded guilty to stealing trade secrets from the chain. Guillermo Martinez is accused of giving confidential pricing information to a vendor during a product review in May 2008, and was also negotiating an employment agreement with the same vendor. As senior manager of product engineering, he was responsible for helping vendors sell Building-Products.com

products to Depot and had access to Depot’s confidential information, trade secrets, pricing and profitability spread sheets, and documents relating to product line reviews. Sentencing is set for Feb. 3.

Machinery Crushes Worker

A millworker at Hixon Lumber Sales, Gilmer, Tx., was crushed Dec. 2 in a wood saw plane press machine. Ricardo Pena, 33, was declared dead at the scene. “When we arrived, what we found was that a worker had gotten close to one of the machines, and it appeared that his clothing had gotten entangled and it pulled him into the machine,” said police detective Roxanne Warren.

Certifiers Ul and ICC Unite

Underwriters Laboratories and ICC Evaluation Service have teamed up to streamline evaluations that ensure building products are compliant with appropriate codes and product safety standards. The new dual evaluation and certification program will simplify the testing and evaluation conduct testing to UL safety standards, show code compliance via an ICC-ES evaluation report, and get simultaneous postings of compliant products in UL’s online certifications directory and code correlation database. “This partnership brings two industry leaders together to create a onestop-shop for building materials testing and evaluation needs in the built environment,” said Chris Hasbrook, an UL v.p. and general manager. He added that the “dual evaluation and certification program will provide manufacturers faster turnaround times and speed to market, while giving their customers two more reasons to trust the quality, safety and efficiency of their products.” UL has also enhanced the usability of its product certification information. Its code correlation database connects product certifications directly with specific applicable model installation code sections to help code authorities and other industry professionals find ICC-ES code-compliant products. “This is just one of the many benefits of working with a trusted partner in safety like UL,” said Mark Johnson, president of ICC-ES. “We continue to look for new opportunities to expand this partnership to better serve our customers and members.”

DEALER Briefs

Foxworth-Galbraith Lumber Co., Dallas, Tx., this month is shutter-

ing its lumberyard and manufacturing plant in San Antonio, Tx., following Dec. 3 closures in Sulphur Springs, Tx.; Payson and Lakeside, Az., and Pueblo, Co. Fox-Gal was given 120 days to relocate its Waco, Tx., yard after its landlord sold the site to a car dealership.

ProBuild shuttered its Sheboygan, Wi., yard Dec. 31 and will serve the market from its facilities in Lomira and Jackson, Wi.

Eldredge Lumber & Hardware, York, Me., received preliminary

planning board approval to convert a nearby warehouse into a window and door showroom.

General Lumber , Milwaukee, Wi., shut down Dec. 31 after 57 years.

Williams Lumber, Rhinebeck, N.Y., is considering adding a lumberyard/home center on a long-vacated site in Pleasant Valley, N.Y.

Sutherlands Lumber, Fulton, Mo., sustained an early morning yard fire Dec. 14. Firefighters contained the blaze outside a warehouse. Arson is suspected.

Jim & Dave’s Building Supply, West Bend, Wi., closed Nov. 30.

General Supply Co., Bethlehem Township, Pa., closed its Hecktown lumber business in Lower Nazareth Township, Pa., Dec. 31, to focus entirely on commercial doors and hardware. Seven years prior, General Supply operated four yards, and LBM accounted for roughly 70% of the company’s revenue. Ace Hardware closed 60-yearold stores in Oak Forest and Chicago Heights, Il., at the end of the year. Owner Keith Ebel continues operating smaller units in Homewood and Elmhurst, Il.

A 7,500-sq. ft. Ace Hardware is opening this spring in Takoma Park, Md. Owners Gina Schaefer and Marc Friedman operate six other hardware stores in the Baltimore/D.C. market. January 2010 Building Products Digest

GREEN Retailing

Better living through (green) chemistry By Jay Tompt

F YOU’RE LIKE ME, the title of this column brings back memories of nerdy high school science films extolling the modern marvels of convenience, value and progress, made possible by the chemical industry. It was a huge post-war economic engine that expanded its reach into nearly every product category and helped fuel the rise of the American suburb. There are now about 80,000 chemicals on the market, but only a few hundred have been tested for human or ecological safety. One unintended consequence is that many of these chemicals have reached into our ecosystems, including the very top of our food chain—us. “Body burden” is the term toxicologists use to describe the toxic load an individual might be carrying at a given moment: several hundred substances, some of which will accumulate, others that will be metabolized and excreted. Pregnant mothers pass these substances to their children. One of the common pathways for exposure to toxic chemicals is through inhaling airborne pollutants. Most people have heard by now that indoor air can be far worse than outdoor air, and that the rise of asthma, multiple sclerosis, and other diseases could be caused by long-term, low-level exposures to the chemicals that surround us in daily life. And, of course, we spend most of our time indoors. The LEED rating systems aim to drastically reduce potential exposures to building occupants by limiting the use of emitting materials in the first place and promoting active measures for improving indoor air quality. I always recommend stocking products that contribute to LEED credits, especially low-emitting, less-toxic products that appeal to the green builders in your area. Products like formaldehyde-free plywood and cabinets, formaldehyde-

Top 10 Green Products of 2009 BuildingGreen’s 2009 Top 10 Green Building Products:

• Pozzotive Plus CMUs & concrete brick from Kingston Block • Thermafiber mineral wool insulation • Invelope integrated wall insulation & rainscreen system • Rheem HP-50 heat-pump water heater • Convia energy-management infrastructure • Pentadyne GTX flywheel energy storage • Silva Cell subsurface tree protection & stormwater system • Mobile solar power generator • Baltix recycled- & biobased-content office furniture • Project FROG modular green classroom

free insulation, zero-VOC adhesives, zero-VOC paints and coatings—the list of less-toxic alternatives is long. But the list of emitting products that would not meet LEED’s requirements for indoor air quality is much longer. I invite you now to get up (after reading the article first, of course!) and follow your nose around your store. Pick up a few products and pronounce their ingredients. Investigate the paints, strippers, cleaners, pest killers, weed killers, and plywood you stock. What is the quality of this air that you and your staff breathe everyday? There’s a very good chance that some nasty neurotoxins, carcinogens, and endocrine disruptors are floating around in the mix. More importantly, the people who might be exposed to off-gassing chemicals are probably the people you most care about. Swapping out the high-emitting products in your inventory, in favor of those with zero or dramatically fewer toxic emissions, contributes to a healthier workplace with fewer liability issues. In the long run, there are large-scale initiatives underway that will eventually lead to safer alternatives through greener chemistry. The Toxic Substances Control Act, the current federal chemical oversight regime, will likely be strengthened, giving the EPA more power to eliminate toxics and require manufacturers to prove health and safety before bringing new formulations to market. In California, the Green Chemical Initiative is undertaking a range of activities designed to make rapid progress eliminating toxics and stimulating growth of greener alternatives. However, the positive effects of these efforts won’t be felt for years. In the meantime, the motivated dealer can learn more about body burden, LEED and indoor air quality from dozens of informative online resources—start Googling! Scientific Certification Systems, GreenGuard and GreenSeal publish lists of their certified products. There are other green product databases out there, too. The consequences of choosing wisely could be felt immediately, leaving those you care most about breathing a little easier. Jay Tompt Managing Partner Wm. Verde & Associates (415) 321-0848 info@williamverde.com

SUPPLIER Briefs

A Dec. 7 fire at Weaber Inc.’s sawmill in S. Annville Township, Pa., was caused by a malfunction in a sawdust/wood waste conveyor belt system.

Bradco Supply, Avenel, N.J., purchased Carlson Distributors, Rockford, Il., provider of roofing, siding, win-

dows and doors to northern Illinois/southern Wisconsin since 1947. Tom Healy will head up the facility, with Andrea Wisniewski and the rest of the Carlson staff staying on to work for Bradco.

Georgia-Pacific is mothballing several panel mills in the Southeast. G-P indefinitely idled its plywood facility in Louisville, Ms.; is shutting down its OSB mill in Grenada, Ms., for six months, and is permanently closing its plywood plant in Fordyce, Ar. About one third of Fordyce’s 340 workers could transfer to help launch a plywood line at G-P’s Crossett, Ar., plant.

Lancaster Distributing parent Merit Group , Spartanburg, S.C., has agreed to buy paint/hardware distributor Five Star Products , East Hanover, N.J., from National Patent Development Corp. for $30 million. Five Star operates two DCs in the Northeast; Lancaster has seven DCs in the Americas. Stella-Jones has agreed to acquire Tangent Rail Corp., Pittsburgh, Pa., which operates crosstie treating plants

in Warrior, Al.; Terre Haute and Winslow, In.; Alexandria, La., and McAlisterville, Pa., and creosote distilleries in Terre Haute and Memphis, Tn. The deal is set to close at the end of 1st quarter 2010.

Virginiaʼs Roper Brothers Folds

Seven-unit, 100-year-old pro dealer Roper Brothers Lumber, Petersburg, Va., closed its doors Dec. 11 and filed for Chapter 11 bankruptcy protection. Operations include Roper Lumber yards in Fredericksburg, Petersburg, and Williamsburg; a millwork division in Petersburg; Roper Design Center, Richmond; Valley Lumber, Winchester, and 60-year-old Taylor Brothers Lumber, Lynchburg.

New Owner GetsCelotex Fiberboard Plants Humming Again

W.R. Meadows, Hampshire, Il., has completed the acquisiton of the assets of bankrupt Knight-Celotex and formed a new division, Blue Ridge Fiberboard, to resume manufacture of Celotex-branded fiberboard products. The firm expected to restart the Celotex plant in Danville, Va., in December and add a second facility in Lisbon Falls, Me. Blue Ridge’s Celotex line will include Structodek roof insulation board, SoundStop fiberboard panels, SturdyBrace structural wall sheathing, and VersaKor allpurpose fiberboard.

Penn Arson Suspect Arrested

A suspect has been arrested in the April 2009 fire in a storage shed at Plassche Lumber, Palmyra, Pa. Kenneth Larock, 18, was arrested and charged with arson in connection with the fire. According to state police, Larock set the fire that destroyed the 100’x10’ shed and the building materials inside.

Universal Forest Products’ Eastern Division is now exclusive national distributor of concrete curing blankets, load transfer, and surface protection products from McTech Group, Loganville, Ga. Snavely Forest Products is now stocking Georgia-Pacific’s Broadspan I-joist, LVL and Rim Board engineered wood products.

Armstrong Flooring Products’ Somerset, Ky., engineered hardwood manufacturing plant received Forest Stewardship Council chain-of-custody certification.

Nordecor, Brainerd, Mn., was granted custody certification.

FSC chain-of-

CertainTeed’s Decoustics Quadrillo, Solo and Solo M ceiling products have been FSC certified by the Rainforest Alliance’s SmartWood program.

GreenFiber, Charlotte, N.C., had its entire product line of natural fiber blow-in insulation certified by Scientific Certification Systems.

Overhead Door Corp. completed its acquisiton of Wayne-Dalton’s door business.

C.R. Mayer & Co., Birmingham, Al., has changed its

name to Mayer Door. Building-Products.com

January 2010 Building Products Digest

PRODUCT Spotlight Low-Slope Roofing by Dan Thomas, GenTite

Repair or replace?

HE WINTER MONTHS BRING cold temperatures, freeze/thaw cycles, and wind. These conditions can damage more than our morale. They can do quite a number on roofs, too. As we begin to look forward to spring, it’s not too early to start preparing for those spring roof repairs. Even though steep-slope roofs are most common in residential architecture, many homes have flat sections over porches, dormers, carports or garages. There are distinct differences in how to address low-slope (flat) roof issues and extend the life and performance of a homeowner’s investment. Help contractors and homeowners care for their flat roofs by asking three basic questions: 1. Should the roof be repaired or replaced? A primary factor is the age of the roof. The lifespan of a low-slope roof varies significantly based on the components of the roof assembly. A wellinstalled roof should perform as stated by the manufacturer, so refer to the warranty for the best indication of how long it should last. Most warranties are good for 10 years, but some products offer no warranty, while some new commercial-grade products come with a lifetime warranty. Along with the age of the roof, con-

Building Products Digest January 2010

sider the recurrence of the problem and ask if other solutions have been tried. The key to a successful repair is using similar materials to those already on the roof. Using a product that is drastically different from the existing material won’t provide a permanent fix, as the solvents and chemical makeup of the products will work against each other. A mineral surface roll or torch down roof should be repaired with asphalt-based products. Roofs with single-ply membranes such as TPO or EPDM require thermoplastic or rubber products, respectively, for repairs. If the homeowner has attempted to repair the roof several times, in the appropriate way, and still has a problem, it may be necessary to reroof. The common options are: • EPDM is a rubber-based singleply membrane roofing material. It’s available in a commercial grade and is easy to install. • TPO (thermoplastic polyolefin) is a single-ply product ideal for warmer climates, as the white surface reflects the sun to reduce energy costs. • Asphalt-based torch down roofing can create a weather-tight roof surface. Safety precautions are critical, as installation involves open flame. • A mineral surface roll is a low-

slope alternative. The lifespan is shorter, but the price point is significantly lower.

2. Is the roof subject to a significant amount of foot traffic? Most roofs are not expected to have heavy foot traffic. If the roof will have a lot of traffic, there are two options: installing a thicker membrane or placing a deck over the roof. A thicker membrane better resists punctures, the most common cause of roof leaks. Commercial-grade EPDM and TPO membranes are available in thicknesses of 45 or 60 mil for the best resistance to punctures. A better option is to install a deck over the roof. The roofing material itself will protect against freezing, thawing and the sun, while the deck will protect the roofing material. 3. Has the homeowner established a maintenance routine? Proper maintenance is critical to getting the longest life from the roof. Always reference the manufacturer’s recommendations and warranty information for specific maintenance guidelines. Following them will keep the roof’s warranty intact. Every year, the homeowner should visually inspect the roof for black or discolored streaks, which indicate mold, algae or fungus. Spots should be cleaned with a household cleaner to stop them from spreading and to prevent roof damage. Inspect all membrane seams, paying particular attention to flashings around curbs and penetrations. Finally, trim overhanging limbs to prevent branches from sweeping against the roof, gutter, soffit and/or flashing. This will minimize leaf debris and increase the roof’s ability to withstand severe weather.

– Dan Thomas, business development manager for GenTite Residential Roofing Systems. Reach him via www.gentite.com.

Add-On Sales to Roof Inspectors

• Safety Barrier or harness to prevent falling • Safety Boots to deter slipping and prevent foot injury from dropped items • Gloves to protect skin from chemicals and sharp objects • Knee Pads • Safety Glasses Building-Products.com

MOVERS & Shakers Darrin Bennett has been named president of Lansing Lumber Co., Holt, Mi. Rodger Enos is now v.p.; Louis “Ned” Legg, chairman, and John Monk, treasurer. Wayne Lancaster, ex-North Pacific, is now with the Daphne, Al., office of Atlas Trading International. He remains exclusive rep for Thomasville Lumber. Chris Counts, ex-Cedar Creek Wholesale, has rejoined Capital as an account mgr. in Dallas, Tx. Michael Morris has joined the sales team at Fingerle Lumber Co., Ann Arbor, Mi. M. Chad Crow has been promoted to chief financial officer for Builders FirstSource, Dallas, Tx. Tom Czlapinski, ex-TimberTech, is now handling outside sales in Texas for California Redwood Co., Arcata, Ca. Chad Griffith, exLumber Products, is covering Oklahoma. Mike Sopher, formerly with Tampa International, has opened a Largo, Fl., office for Greenleaf Trading, specializing in studs, random dimension, and forward pricing. Jerry Lathan, ex-Viance, has joined the outside sales force at Tank Fab Inc., Rocky Point, N.C. Lorraine Meyer is the new administrative assistant. Eric Watson has been named branch mgr. of ABC Supply, Knoxville, Tn. His brother, Adam Watson, was appointed mgr. in nearby Talbott, Tn. Paul McGrath, McGrath Lumber, Greenfield, N.H., will handle U.S. sales for Nova Scotia-based Lignibel Ltd.’s recently restarted sawmill. Todd Woods has been promoted to senior v.p., deputy general counsel, and assistant secretary for Lowe’s Cos., Mooresville, N.C. Brian Miller has been named the president of ProVia Door and Heartland Siding, Sugarcreek, Ok., succeeding Bill Mullet, who remains c.e.o. Juan Figuereo has been appointed finance chief at Newell Rubbermaid, Atlanta, Ga., replacing J. Patrick Robinson, who has retired. David F. Brown, Masco, Taylor, Mi., has joined as chief procurement officer and v.p.-supply chain. Building-Products.com

DEALER Briefs

Scott Bausch has been named director of product marketing for Legrand/ Pass & Seymour, Syracuse, N.Y. Joey Viselli has been named v.p.-marketing for Knauf Insulation North America, Shelbyville, In. Glenn Sharpe has joined Lumber Liquidators, Toano, Va., as senior v.p.-supply chain. He replaces Rick Boucher, who is leaving the company to pursue other interests. Peter Durette is now chief strategy officer and v.p. at MeadWestvaco Corp., Richmond, Va. Jason Bailey, White City Lumber, New Lisbon, Wi., recently completed National Hardwood Lumber Association’s 14-week lumber inspection program, along with Jerrod Free, J.T. Shannon Lumber Co., Horn Lake, Ms.; D. Wince Lynn, Lynn Lumber Co., Tellico Plains, Tn.; Matthew Gray, Bibb Hardwood, Birmingham, Al.; Coy Parker, Parker Wood Products, Huntsville, Ar.; Jason Letts, Missouri Walnut, Neosho, Mo.; Christopher Largent, Ralph Largent Sawmill, Erin, Tn.; Don Kuehl, Billsby Lumber Co., Harrison, Mi.; David Pfister, Oaks Unlimited, Waynesville, N.C., and Dimitri Kulp, Boscobel, Wi. Kenneth F. Yarosh, Dow Corning Corp., was elected vice chairman of the board of directors of ASTM International for 2010-2012. Robert D. Thomas, president of National Concrete Masonry Association, was elected a board member. Dan Lewis, Odenton Ace Hardware, Odenton, Md., was recognized as Business of the Year by the local Chamber of Commerce. J.R. Hobbs, v.p., Delaware Lumber & Millwork of Salisbury, Md., won the 2009 B. Harold Smick Jr. Young Leader Award from the Eastern Building Material Dealers Association. Donald Magruder, general mgr., RoMac Lumber & Supply, Leesburg, Fl., was named Associate of the Year by the Home Builders Association of Lake Sumter. Rich Returns is the new investment mgr. at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Pearlie and Nathan Carey have acquired Bradley’s Feed Store, Anahuac, Tx., and reopened it as a fullservice hardware store, Anahuac Farm Supply & Hardware.

Green Depot held a grand opening Dec. 9 for its new location in Albany, N.Y.

Menards is closing its Eden Prairie, Mn., store Feb. 26, to build a larger, two-story facility in its place by early spring 2011. Lowe’s opened new stores Dec. 4 in Potsdam, N.Y.; Nov. 27 in Deltona, Fl.; Nov. 20 in Voohees, N.J., and Oct. 30 in Moberly, Mo.; Sanford, Me., and Greenport, N.Y. The chain also expects new store openings early this year in Salem, Va.; in 2nd quarter 2010 in College Station, Tx., and in 4th quarter 2010 in S. Staten Island, N.Y. Lowe’s backed out of plans to build a store in Holyoke, Ma., but secured a $125,000 tax break to build a $25-million home center in Salem, Ma.

Home Depot will fund a pilot project that will pay private landowners in the Southeast to conserve and manage their forested land. The home center chain has discontinued Ralph Lauren paint and now stocks paint, cleaning products, and closet organization products from Martha Stewart Living.

Depot also presented Makita USA with the Marketing Innovation Award at its annual supplier partner meeting in Atlanta, Ga.

ProBuild was SCORE (Structural Component Operations Reaching for Excellence) certified at the Elite level at 39 of its truss plants, including three in Florida, three in Texas, two in Georgia, two in Iowa, and one each in Indianapolis, In.; Dry Ridge, Ky.; Grand Rapids, Mi.; Wadena, Mn.; Valley Center, Mo.; Berlin, N.J.; Kingston, N.Y.; Albermarle, N.C.; Delaware, Oh.; Morrisville, Pa.; Mitchell, S.D.; West Point, Va., and De Pere, Wi.

Anniversaries: Ace Hardware , Geneva, Il., 85th … Teague Lumber Co., Fort Worth, Tx., 65th … York County Lumber Corp., York, Pa., 50th … January 2010 Building Products Digest

Dealers Guard Against Shingle Thieves It’s been a good year for thieves specializing in roofing shingles. Millions of dollars worth have been stolen nationwide—a sizeable increase from past years. In Texas alone, more than $4 million worth of shingles have been stolen this year. “It’s tremendously exasperating,” said Barbara Douglas, executive v.p. of the Lumbermens Association of Texas, “especially for people that have been hit more than once. It’s like hitting them when they’re down, because the building economy is so slow.” To help stop the thieves, the association worked with Crimestoppers—a national organization that works off tips to solve crimes—to set up a specialized call center for thefts of roofing and other building materials. Investigators believe some of the thieves are part of an organized operation that is stockpiling the materials in anticipation of hurricanes, tornadoes, and damaging storms that would heighten the demand for shingles. “They do it to everybody. They don’t leave anyone out,” said Bill Schuch, security chief for ABC Supply. He said that shingle thieves have hit company locations across the

Building Products Digest January 2010

nation. In July, security cameras caught masked thieves sawing through fences at the company’s warehouse in Atlanta, Ga., then using the yard’s forklift to load up a truck with $30,000 of shingles. Since then, the company has installed more security cameras and fences and added GPS equipment to its vehicles. The story is similar at Bradco Supply. In May, the company’s warehouse in Fort Worth, Tx., was ransacked and 10 semi-trailers of shingles worth $120,000 were stolen. In August, more than $100,000 worth of shingles were stolen from a Bradco facility in Tulsa, Ok. “It’s almost like a chain of copycats at this point,” said Charles Collins, regional operations manager. “They figured the game out and now they’re targeting us.” Because of the robberies, Bradco now adds a unique splash of paint to the shingles’ packaging to help police track down the stolen roofing material. While the addition has helped police, it does add to the company’s operational costs. Smaller companies worry that the

costs of thefts and increased security could put them out of business. “How can a small lumberyard do that, especially in this economy?” asked Laddy Rejcek, a manager at Blazek Building Supply, which lost over $100,000 in shingles from robberies at its locations in Waxahachie and Ennis, Tx.

Ex-Worker Fingers Crooks

Tired of guilt and “sleepless nights,” a former employee of E.C. Cottle Lumber, West Tisbury, Ma., led police to a safe that was stolen from the company more than two years ago and dumped in nearby woods. Kristen K. Brown, 22, who no longer works for the company, reportedly received $1,000 for leaving a window open so four local men could steal the safe. All five have been arrested on charges of breaking and entering with intent to commit a felony, breaking and entering into a depository (the safe), receiving stolen property, larceny over $250, and conspiracy to commit a crime. Clerk Janet Johnson said there were four days worth of sales in the safe when it was stolen. She is assembling records to determine the exact amount, but said it was well above $10,000.

Building-Products.com

Maine Start-Up Vows to Do Its Best for Local Community

When a new Do It Best opens April 15 in Milo, Me., owner Brian Grosse plans to donate a percentage of profits “to create some jobs and give back to the community.” Grosse said he decided to open the business after a fire destroyed a downtown area that included the city’s only hardware store, Milo True Value. The new store will occupy the 12,000-sq. ft. first floor of a building that Grosse owns. “I’m happy to see the building’s going to be back in operation and occupied,” said Grosse. “I want the building to be used.” In addition to hardware, the store will also offer housewares, sporting goods, and kayak rentals. A pellet stove fueled by Maine-manufactured pellets will heat the store, as well as customers who can sit at a nearby table and play board or card games. Brett Moses will be general manager and two former Milo True Value employees were also hired. Gross offered to hire John Crossman, owner of the former True Value, as a consultant, but Crossman insisted on working as a volunteer.

Building-Products.com

Ainsworth Completes Cast Off of Non-Core Panel Mills

Ainsworth Lumber has completed the sale of “non-core” specialty plywood facilities, allowing the Vancouver, B.C.-based producer to concentrate on engineered wood products. “In early 2009, we established a clear strategy of divesting non-core assets and dedicating our resources to our most profitable operations,” said president/c.e.o. Rick Huff. He added that the firm is now “well positioned to take advantage of an eventual recovery in North American demand for engineered wood products.” Ainsworth sold its specialty plywood mill in Savona, B.C., and its veneer mill in Lillooet, B.C., to Aspen Planers, Merritt, B.C. Both mills had been closed since June. Operations at the company’s three OSB mills in Minnesota were permanently halted in January. The Bemidji property was sold to the The Idea Circle, which plans to develop a bioenergy park for emerging green businesses. Hill Biomass bought the Cook mill to produce biomass fuel products. The sale of the Grand Rapids property to an undisclosed buyer was expected to be completed in mid-December.

SUPPLIER Briefs

Countertops Inc., Eau Claire, Wi., purchased the former Merillat particleboard plant in Rapid City, S.D., and renamed it Dakota Panel.

Fiberon, New London, N.C., has broadened its distribution agreement with CertainTeed to include EverNew composite decking with PermaTech surface technology.

Simpson Strong-Tie’s Steel Strong-Wall structural shearwall is now code listed for use in two-story constructions applications.

LP Building Products, Nashville, Tn., has redesigned its website.

AZEK Building Products , Scranton, Pa., redesigned www.azek. com, incorporating a dealer locator and other interactive features. Royal Building Products has launched royalbuildingproducts.com.

Temple Inland’s gypsum board products have been MAS certified as low-emitting materials.

January 2010 Building Products Digest

WESTERN WOODS

Historic downturn sets stage for slow lumber recovery

RESIDENTIAL CONSTRUCTION should begin the long, slow road to recovery this year.

“N

EVER BEFORE .” “Historic.” “Unprecedented.” “Worst Ever.” These and many other adjectives have been used to describe lumber markets this past year. While the worst may be over, the depth of the downturn in U.S. lumber demand and production has created new challenges and will likely hold back the pace of recovery in the future, according to a lumber market outlook from Western Wood Products Association. Demand for softwood lumber in 2009 plummeted to the lowest point in more than three decades. The collapse of the housing market, fueled by a U.S. economy roiled by financial crisis, has impacted the lumber business dramatically. As demand for lumber evaporated, lumber prices declined, in some cases by 60% or more from levels of four years earlier. Housing long has been a key market for lumber,

Building Products Digest January 2010

accounting for 45% of annual consumption. After peaking at 2.068 million in 2005, housing starts declined steadily before tumbling in 2009 to post-World War II lows. Just 551,000 houses are expected to be built in 2009, down 39% from the previous year, predicts WWPA. That total is the lowest since 1945, when 326,000 homes were built. As a result, just 7.2 billion bd. ft. of lumber will be used in new construction in 2009, compared to the 27.6 billion bd. ft. used in housing just four years earlier. Overall demand for lumber is expected to total just 31 billion bd. ft. in 2009—less than half of what was used in 2005. That would be the lowest annual volume of lumber used since 1975. Repair and remodeling uses, the second largest market for lumber, has fared slightly better than home building, but is still weak. An estimated 11 billion bd. ft. of lumber will be used in repair and remodeling in 2009, down 26.6% from the previous year. The unprecedented decline in demand has taken its toll on lumber producers. Western lumber production in 2009 is forecast to decrease 21%. The 10.2 billion bd. ft. produced by western mills is the lowest since the 1930s and represents a little more than half the volume the same mills produced five years earlier. Sawmills in the South have reduced production as well, decreasing to 11.6 billion bd. ft. in 2009. In all, U.S. lumber production will total 21.8 billion bd. ft. for the year, down 21% from 2008. Canada and other foreign lumber suppliers have fallen on even harder times in selling to U.S. markets. Lumber imports from Canada are predicted to total 7.9 billion bd. ft. in 2009, a decrease of 32% from the previous year. Other imports, including lumber from Europe and Latin America, should decline by double-digit percentages for the fourth straight year and lose more market share to domestic producers. Looking ahead to 2010, lumber markets are expected to show some recovery as home construction activity picks up. But given the weak economy, continued high home foreclosure rates, and a financial system struggling for stability, the gains in lumber demand and production will be modest. WWPA is forecasting lumber demand to rise 11% in 2010 to 34.5 billion bd. ft. Housing starts will increase 21% to 668,000. While that is an improvement, the number of homes built in 2010 will be just half the total of what Building-Products.com

was constructed in 2007. U.S. lumber production should move higher to meet the slow growing demand. Western mills are expected to produce 11 billion bd. ft. of lumber in 2010, up 8%. Sawmills in the South will match that growth and increase production to 12.6 billion bd. ft. Canada may begin to regain some of the market share lost over the past few years. Softwood lumber imports from Canada are expected to rise 18.8% in 2010 to 9.4 billion bd. ft. Volumes from Europe and Latin America will also increase to just over 1 billion bd. ft. Beyond 2010, both lumber demand and production are expected to follow an upward trend as economic activity and housing construction continues to rise. Housing starts, though, are not forecast to move above 1 million units until 2012. Lumber demand will follow those gains, but it may be some time before volumes come close to those recorded in 2005. As recovery takes hold, hopefully the industry will find more positive adjectives to describe the lumber business.

Find Sawmills, Products with Online Utility

Historic declines in the western lumber industry have caused many changes in the supply chain, with distributors looking for new sources for lumber and services. An online locator can give wholesalers and retailers a head start on finding new lumber suppliers. Available at www.wwpa.org, the Online Lumber Buyers Guide can be used to generate a list of western mills based on species, product, service, even transportation mode. Once the criteria is selected, mill listings can be generated showing the sales contacts, phone and email addresses. Product selections range from dimension lumber to boards to specialty products such as fingerjointed lumber or pattern stock. All major western species can be sourced, including Douglas fir-larch, white fir, and ponderosa pine. Retailers selling product to green building projects can use the guide to find western mills making FSC or SFI certified lumber. Mills cutting for export markets can also be identified. Product services that can be selected range from heat treated (HT) stock, end waxing, double end stamping and long lengths. Transportation selections cover the major railroads—direct and reload—as well as truck or barge.

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PO Box 20, Springfield, OR 97477 Technical Support: 1-877-457-4139 Email: info@rosboro.com Web: www.rosboro.com January 2010 Building Products Digest

WESTERN WOODS

Software tools ease lumber selection, specification

slowly recovers, more lumber customers

S CONSTRUCTION ACTIVITY

Building Products Digest January 2010

will be seeking help in identifying the right western lumber product for a

construction project. Two software design tools can make that job easier and aid wholesalers and retailers in helping customers make the right selections. The Western Lumber Design Suite and the Lumber DesignEasy software utilities deliver information on western lumber grades, spans and other technical information with just a few clicks. The design utilities, which work in concert with Microsoft Excel, are available free of charge from Western Wood Products Association. The Western Lumber Design Suite is a full-featured design tool that provides calculations for horizontal framing (beams and joists), vertical framing (posts and studs), and wood-towood shear connections. Calculations are available for the major sizes and grades of western lumber products available in the market today. All calculations follow the 2005 National Design Specification for Wood Construction (NDS). The Design Suite features three modes: Beam/Joist Design, Post/Stud Design, and Wood-to-Wood Single Shear Connections. The Beam/Joist mode is for horizontal framing and calculates reactions, shear, stresses, moments and deflections based on the specified loads. Users select the design parameters and the program assigns appropriate adjustment factors and determines whether the specified member size is adequate. Also displayed are diagrams, bending moments, horizontal shear and deflection per the specified loads, all on one screen. For vertical framing, the Post/Stud Design mode calculates compressive stress, bending stress, and combined stress ratio based on the specified loads for posts or studs. Users select the design parameters and the program Building-Products.com

determines whether the specified member size is adequate. Adjustment factors for load duration, size, wet use, bearing area, repetitive member, stability, incising, high temperature, column stability, flat use and form can be specified. The Connections mode calculates the single shear capacity of a nail, bolt, wood screw or lag screw connecting two wood members. Load duration, connector penetration, and wood member end grain conditions are considered. The calculations are only for simple connections. While created for professional engineers and designers, the Design Suite allows distributors to better serve their customers by providing product recommendations based on the structural requirements in the plans. Retailers using the Design Suite can identify the right species, size and grade of western lumber for a project that they can supply from inventory. The Lumber DesignEasy utilities offer a quick and easy way to determine spans for Western lumber joists, rafters and beams. The Lumber DesignEasy–Joists utility quickly calculates simple joist and rafter spans for western lumber structural grades from 2x4 up to 3x16. Select the species and size, then enter the loading conditions, and DesignEasy generates a table of spans for each of the appropriate structural grades for four different on-center spacings.

LUMBER DEALERS and wholesalers can use software design tools to help their customers select the proper grades, spans and more.

A second utility, Lumber DesignEasy–Beams, allows users to calculate spans for Douglas fir and hem-fir beams and headers. Spans are available for solid-sawn beams in sizes from 6x6 to 14x24. The utility also calculates spans for built-up beams constructed from up to four 2” dimension lumber members in widths of 4” to 18”, as well as 4x4 to 4x18 beams. All Lumber DesignEasy utilities are optimized for use on portable hand-held devices or smartphones that can run mobile versions of Excel. WWPA is also developing a Lumber DesignEasy–Joist application that will run on iPhones. The app will be available on the iTunes store this spring. Both the Lumber Design Suite and Lumber DesignEasy utilities can be downloaded at no charge from the WWPA Online Lumber Technical Guide at www.wwpa.org. Free registration is required to access the site. Additionally, both software programs are included in the WWPA Digital Library, a compact disc containing a full complement of western lumber digital publications. Building-Products.com

January 2010 Building Products Digest

WESTERN WOODS

Sawmills preparing for “new normal”

MERGING FROM THE DEEPEST downturn in the industry’s history, lumber sales professionals at western sawmills are preparing for a “new normal” in selling and serving their distributor customers as markets recover. Both mills and distributors have seen dramatic changes in the past few years. Demand for lumber plummeted by more than 50% from 2005 to 2009. Mills cut output as prices crashed, with some product such as framing lumber selling for 60% less than four years ago. On the distribution side, scores of lumberyards and wholesalers closed or filed for bankruptcy. The pace of consolidation accelerated, while economic conditions put stress on financing and credit for lumber purchases. Relationships between mills and customers—long a key part of the lumber business—will take on even greater importance as sales start to recover. Many mill sales executives said fortifying those relationships are a priority. Steve Schmitt, vice president of marketing at Stimson Lumber Co., Portland, Or., said his sales staff has been traveling more to meet with dealers. “We pride ourselves in standing behind our products. Going out to meet with our customers is the best way to demonstrate that commit-

Building Products Digest January 2010

WESTERN MILLS are tweaking their capabilities and product lines to remain competitive in a tough market.

ment,” he said. Other mills are becoming more involved with their customers’ businesses. Mark Porter, mill sales manager with Hampton Lumber Sales, Portland, said his company has spent more time evaluating what their customers need,

Building-Products.com

from product offerings to training. “We’ve been doing this with many of our key buyers and have been successful,” said Porter. “Even with the down markets, we’ve been able to increase our business to these customers.” Mills are changing how they supply lumber to customers. Sierra Pacific Industries lumber sales manager Bob Shepherd said his mills are selling more specified tallies and mixed cars than before, reflecting the changing buying patterns of their customers. J.D. Deisher of Georgia-Pacific West is finding ways to get more variety of lengths in smaller shipments for customers. Simpson Lumber Co. installed double trim saws at its mills to cut shorter lengths. “We now have more flexibility in cutting to 8-, 10- and 12foot products that our customers want,” noted Laurie Creech, Simpson sales manager. Other mills have expanded their product offerings. John Stembridge at Swanson Group Manufacturing, Glendale, Or., said their mills are now cutting wider widths, up to 2x12, instead of the 2x4 and 2x6 products they cut predominately in the past. Jim Scharnhorst, Idaho Forest Group, Coeur d’Alene, Id., said his mills are expanding in cedar products in addition to their framing and pine board offerings. SPI has added 4x4 and 4x6 white fir to its product line. Enhancing lumber quality and appearance is a priority for many mills in the West. Shepherd said SPI has focused on “doing a better job at the mill” to not only manufacture those products that are most in demand, but to ensure the quality the customer expects is there as well. Simpson has introduced a “Gold Label” premium line for lumber, which Creech says has been popular. The emphasis on quality goes beyond the cutting better lumber. Stimson’s Schmitt said they have changed to heavier paper wrap on lumber to better protect open car shipments in transit. A number of mills said they will be antistain treating both green and kiln-dried lumber to keep the products bright and clean when they reach the yard. The difficult market condition over the past year have forced mills to review the credit they offer to buyers and be more selective in extending Building-Products.com

terms. At the same time, mills have tried to become more flexible with long-standing customers. As one sales executive noted, “We are working with people who have been working with us.” Many said that buyers who are honest about their financial conditions will have a better opportunity to develop long-term relationships with mills that can benefit both parties. With lumber inventories low throughout the market, the prospect of increasing sales will test mills’ ability to deliver lumber to all customers when they need it. Since 2005, west-

TRIM

FASCIA

ern lumber production has shrank by some 47%, or 9 billion bd. ft. Should markets come to life, mills will be hard pressed to push production up quickly. Lumber buyers who have stuck with mills through the tough times will have a leg up in getting the supply they need once markets heat up. “Our best customers are those who understand that we rise and fall together,” said one sales manager. “Those are the people we want to do business with, in good times as well as bad.”

SIDING

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1.866.FSC .WO O D January 2010 Building Products Digest

FAMILY Business By Kelly LeCouvie

Are you enabling incompetence?

â€œI

JUST WANT MY KIDS TO BE HAPPY

and to get along.â€? We often hear this sentiment expressed among senior-generation members of a family business. Parents try to create conditions that will help ensure such an outcome, only to discover over time that some of those very efforts create the opposite result: their kids are unhappy in the business and there is conflict within and between generations, often extending between family and nonfamily management. Everyone loses in this scenario. If a person lacks the competence to deliver on the expectations defined by the position, it will inevitably lead to

Building Products Digest January 2010

stress and unhappiness. This is even more pronounced in a family business where the person is being judged not only on a professional level, but also by parents and siblings. The child also has the added stress of feeling that he is letting down his parents. In addition, the child feels harshly judged by non-family co-workers who feel that he has not earned the position, and this is why they are not competent to deliver. How, after you worked so hard to expose your children to the culture of the business, demonstrating by example the strong work ethic required for success and even offering summertime

employment, could their contribution to the business be so limited? Somehow, between those childhood and young adulthood experiences and their full-time employment in the business, their level of competence has not developed as you had hoped or expected. The favorable qualities of leadership, hard work, and business acumen that the senior generation demonstrated are now wholly lacking in the second generation. In short order, this work environment can quickly dissolve into resentment, disloyalty, low morale, high turnover, and numerous other negative consequences for the business. How did this long path of incompetence develop? A path that anyone other than a family member would not be permitted to walk? While there are no definitive answers, our experience tells us that the senior generation, as well as siblings and cousins, are often enablers of incompetence. There are a number of specific areas around which your efforts as a senior-generation member might have enabled this undesirable outcome:

Compensation

Compensation is the most basic of

Building-Products.com

business principles but at the same time leads to the most confusion. To oversimplify, you work hard, have successful outcomes, and are compensated accordingly. However, parents add confusion to the mix by rewarding their children when they need money, or when they ask for it, without evaluating what they have done to earn it. This creates a false sense of worth and control. Parents must replace a subjective reward process with a specific compensation policy that supports and protects all parties involved. This policy will help protect the parents from arbitrarily rewarding acts of incompetence, as well as protect the junior generation from presuming that these rewards are tied to efforts or results.

legitimate response to ambiguity. It is the responsibility of those who participate in developing future leaders to ensure that expectations are clearly articulated, that performance measures are understood and agreed upon, and that managers will be held accountable for their actions. As a senior-generation member of the family and/or the business, your contributing “support” or “insights” may have been intended to strengthen competence, but they have perhaps instead diluted that hoped-for result. Competence brings with it many other critical factors for people’s happiness in their work and their lives; it also

contributes to strong relationships with other family and non–family members in the business. Competence cannot be inherited or anointed, but it can be nurtured and learned. It is the outcome of a process and, given the proper tools, support, and patience, develops over time.

– Kelly LeCouvie is a senior associate of the Family Business Consulting Group, Marietta, Ga. Reach her at (800) 551-0633 or lecouvier@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.

Managerial Style

In successful family businesses, the senior generation has demonstrated effective management skills that allowed the business to survive over the years. During this tenure, the business had to adapt and change based on the exigencies of the marketplace. The senior generation must have the courage to support the success of the next generation, even if it means a new approach to running the business. In fact, as times change, so do effective management approaches and decision-making styles. You can’t lead a $200 million company the same way you led a $20 million company. Give your kids exposure to the best management styles you can. This may mean sending your kids to work with other companies in other fields before returning to the family business (a requirement that might be stipulated in the Family Employment Policy), or simply offering your children formal educational opportunities.

Clarity Around Expectations

This topic ties into the compensation mentioned above but addresses a more comprehensive environment of expectations in the family business. For example, a Family Employment Policy defines expectations but, more important, establishes an objective, optimal hiring process that is applicable to all family members considering employment in the business. The policy also helps to satisfy that need to define one’s position and contribution. In the absence of clearly defined expectations, we (and others around us) make assumptions about what is acceptable, what is right. That is a Building-Products.com

January 2010 Building Products Digest

National Home Centers Files Chapter 11 Bankruptcy

National Home Centers, Springdale, Ar., has filed for Chapter 11 bankruptcy protection. The chain blamed the filing on being unable to reach a deal with its primary lender, CIT Group, which itself is working through Chapter 11. “We could not reach a resolve,” said National c.e.o. Dwain Newman. “It’s certainly the company’s last choice. It is our mission in life to pay our creditors, but we’re frozen.” The chain is currently liquidating its west Little Rock, Ar., home center and phasing out LBM in Bentonville, Ar., to concentrate on flooring, paint, furniture and appliances. The cutbacks will leave National with six home centers and three Flooring Superstores.

Massachusettsʼ Cowls Gives Up on Milling After 250 Years

Citing competition from high-volume sawmills around the world, W.D. Cowls Inc., Amherst, Ma., closed its sawmill Jan. 1. The company will continue to run its retail outlet, Cowls Building Supply, and manage its large timberlands holdings. “It’s just that little tiny mills in western Massachusetts can’t compete with Weyerhaeuser and China and plastic lumber,” said president Cinda H. Jones. “In the past 30 years, the sawmill was seldom profitable. But it was part of our heritage, and it was our heart and soul. It’s really the personality of the family.” Three of the six workers at the mill were laid off at the start of the year. Three others will work at the company’s planing mill until August, preparing pine boards that have already been cut. Two years ago, the mill had 15 workers. Jones is the ninth generation of her family to be involved in the business. The Cowls family has owned timberlands and logged in the region since 1741. Today, the company is headquartered in a farmhouse the family built in 1768. The current mill opened in 1940, after years of using portable mills to cut lumber. In 1980, when her father, Paul Jones, opened the retail store, 80% of its sales was of lumber cut by the family mill. Today, that figure has dropped to just 20%. She said that consumers are also looking for substitute building products, such as plastic and composite decking.

Building Products Digest January 2010

GRAND OPENING of LiteSteel Technologies’ new $30 million plant in Troutville, Va., was celebrated Oct. 29. The plant will produce LiteSteel beams in 12 different sizes.

“It doesn’t require the maintenance that natural wood requires,” said Jones. “When I look at those products, I don’t think they look as nice as real wood. But the demand for real wood just isn’t there.”

BMHC Okayed To Emerge

Building Materials Holding Corp., Boise, Id., received bankruptcy court approval to complete financial restructuring in hopes of emerging from Chapter 11 on January 4. “As a result of this process, we will be in a much stronger financial position, having reduced our outstanding indebtedness to $135 million upon emergence,” said chairman and c.e.o. Robert E. Mellor, who under the plan would step down. “In addition, we have streamlined our cost structure significantly and have secured exit financing of $90 million to support our ongoing operations and future growth.”

Beacon Grows in Tennessee

Beacon Roofing Supply, Peabody, Ma., has acquired single-unit roofing distributor Lookout Supply Co., Chattanooga, Tn. Lookout president Steve Persinger will stay on as part of Beacon’s regional leadership team. Pat Murphy, senior v.p. of Beacon’s Southeast Region, empha-

sized the strategic fit and compatibility of the two companies: “Lookout provides Beacon with an excellent opportunity to enhance our current presence in Tennessee and to enter the Chattanooga market. Equally important is that Lookout shares Beacon’s core values of integrity, loyalty and a commitment to its employees and customers.”

Bitter Store Owners Sue Ace

Investors who own three Ace Hardware “Vision 21” stores in Illinois have filed a lawsuit against the co-op, claiming that the larger stores failed to produce promised profits. Stores included in the lawsuit are Silvis Ace Hardware, Silvis; Hilltop Ace Hardware, Rock Island, and Village Ace Hardware, Champaign. The first two stores opened in 2006 and closed earlier this year. The phone was recently disconnected at the Champaign store, which opened in 2007. The plaintiffs allege that Ace Hardware Corp., Oak Brook, Il., induced them to invest millions of dollars to purchase land and construct and stock the new stores—which were designed to compete with larger home improvement stores such as Home Depot, Menards, and Lowe’s. According to the lawsuit, Ace Building-Products.com

promised that it had tested and proven the concept and the new stores would generate positive cash flows in the first year. The co-op also allegedly told the investors that if they built three or four stores at once and continued with dozens along the Interstate 74 corridor and the QuadCity area, they could make tens of millions of dollars. The plaintiffs claim they repeatedly notified Ace about the poor performance of their franchises and demanded assistance, but the corporation “turned a deaf ear” and demanded they pay back the money it had advanced to them. The lawsuit further alleges that at the time Ace was selling franchises to them, it was trying to convert from an owner-cooperative to a privately held corporation with intent to offer public stock. The plaintiffs argue that Ace was trying to increase sales of both franchises and inventory to enhance the likelihood of a public offering. In addition to naming Ace Hardware as a defendant, the lawsuit also names two men who sold Ace franchises, as well as several directors and vice presidents of Ace.

Weyerhaeuser Converting to Real Estate Investment Trust

Weyerhaeuser, Federal Way, Wa., announced it will convert to a real estate investment trust (REIT) in the near future, to increase profitability. “This conversion will position us to be more competitive in our timberlands business,” said president and c.e.o. Dan Fulton. Although a date has not been set, board chairman Chuck Williamson said that “the most likely date would be 2010, based on circumstances as we know them today.”

Building-Products.com

Factors under consideration include the state of the economic recovery, the distribution of earnings and profits required under tax laws for REIT election, and changes in tax policy, including shareholder tax rates. Conversion to a REIT would result in a special dividend of undistributed profits, most of it in the form of stock. By the beginning of 2010, the company expects earnings and profits to total slightly less than $6 billion.

Lumber Producers Launch New Lobbying Group

American Wood Council has formed a new, national coalition of U.S. wood products manufacturers, to work together on building codes, standards, regulations and green building policy issues. “We are eager to get to work on behalf of the expanded AWC membership,” said AWC’s Robert Glowinski. “The new coalition will ensure that wood products manufacturers have a broadly supported, unified, and powerful voice at the table so that we can secure a strong future for the wood products industry in the face of an onslaught of upcoming challenges.” The group, officially launched Jan. 1, already has 47 supporting members and each holds a seat on its oversight board. Officers are chairman Marc Brinkmeyer, Idaho Forest Group, Coeur d’Alene, Id.; 1st vice chairman Joe Patton, The Westervelt Co., Tuscaloosa, Al.; 2nd vice chairman Brian Luoma, Louisiana-Pacific Corp., Nashville, Tn.; immediate past chairman Ray Tennison, Simpson Investment Co., Tacoma, Wa.; lumber rep Adrian Blocker, West Fraser, Inc., Vancouver, B.C.; structural panels rep

Fritz Mason, Georgia-Pacific, Atlanta, Ga.; EWP rep Rob Taylor, Weyerhaeuser Co., Federal Way, Wa.; other products rep Andrew Miller, Stimson Lumber Co., Portland, Or., and Canadian Wood Council rep Diana Blenkhorn, Maritime Lumber Bureau. Current membership represents 58% of U.S. lumber production, 71% of structural panel production, 62% of engineered wood products, and strong representation from all Canadian wood products.

SFI Tweaks Green Standard

The Sustainable Forestry Initiative program is revising its standard for 2010, to address growing market interest in products from certified forests. The revised SFI 2010-2014 Standard is the outcome of a one-year open review process, in which more than 2,000 individuals and organizations were invited to comment. Revisions include adding emphasis on the importance of avoiding controversial or illegal fiber sources, strengthening landowner outreach and logger training programs, and better aligning principles with international criteria and indicators. “As a result of the transparent review process, the revised standard reflects all values, including important provisions for wildlife habitat and biodiversity,” said comment review task force member Scot Williamson, v.p. of the Wildlife Management Institute. “It is both forward-looking and practical.” The amount of land certified to the SFI program in North America has grown to 178 million acres, comprised of 62 fiber sourcing certificates and over 700 chain-of-custody certificates at about 1,600 locations.

January 2010 Building Products Digest

ASSOCIATION Update Northeastern Retail Lumber Association will host its annual LBM Expo Feb. 3-5, Seaport World Trade Center, Boston, Ma. Educational sessions will include “Build Your Market Share in a Slow Housing Market,” “Technology: The LBM Weapon for Success,”and “Building in the New, Green Economy.” Also scheduled are a welcome reception, industry recognition dinner, and several breakfast talks. In the field, regional affiliates will present a host of seminars, including: • Microsoft essentials for LBM dealers Jan. 19 at Russin Lumber, Montgomery, N.Y., Jan. 20 at Hilton Garden Inn, Nanuet, N.Y., and Feb. 23 at Super Enterprises, Melville, N.Y. • Basic blueprint reading & material estimating Jan. 19-20 at Radisson Hotel, Rochester, N.Y., and Feb. 1617 at Best Western Carriage House, Watertown, N.Y. • Advanced estimating Jan. 21 at Radisson Hotel, Rochester, and Feb. 18 at Best Western Carriage House, Watertown. • “Create an Experience that Customers Remember” Feb. 25 at Radisson Hotel, Rochester, N.Y. In addition, a Feb. 23 webinar will cover counter and inside sales.

Florida Building Materials Association has scheduled its annual winter education conference for Feb.

24-26 at One Ocean Resort Hotel & Spa, Atlantic Beach, Fl. Jim Mathis, speaker and consultant, will present a talk on “Reaching Beyond Endurance.” FBMA is also offering a new 401k/profit sharing plan. Members can cut costs and offload administrative tasks by rolling existing SEPs, SIMPLEs, profit sharing, and money purchase pension plans into the new program. Illinois Lumber & Building Material Dealers Association is staging its annual convention Feb. 8-10 at Peoria Civic Center & Pere Marquette Hotel, Peoria. Educational seminars will cover success strategies, expanding your customer base, and the costs of distracted driving. Social events include an auction and cocktail party. Southern Building Material Association will gather for its annual building products buying show Feb. 34 at the Show Place, High Point, N.C. Educational sessions will include green building, estimating clinics, the essentials of selling green, and a special report on the year ahead.

Mid-South Building Material Dealers Association puts on its annual meeting and trade show Feb. 4-6 at Imperial Palace Resort, Biloxi, Ms.

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Building Products Digest January 2010

The event begins with a golf tournament to raise funds for the Carl Frusha Scholarship Foundation Feb. 4 at Grand Bear Golf Resort.

Wisconsin Retail Lumber Association hosts its 120th annual convention Feb. 10-11 at Kalahari Resort & Convention Center, Wisconsin Dells. Highlights include educational sessions, a tabletop showcase, networking receptions, and more. WRLA is also sponsoring several webinars over the next two months, including “Understanding North American Green Building” on Jan. 14, “Chain of Custody” Feb. 11, and “Sourcing & Selling Certified Wood” Feb. 25.

Indiana Lumber & Builders Supply Association elected Mark Zemrowski, Von Tobel Lumber, Valparaiso, as its new president. The annual President’s Award for leadership went to Kim EmmertO’Dell, Timberland Lumber, Brazil, while the Naomi Niehause Award went to Julia Perkins, Ferguson Do It Best, Plainfield. Federated Insurance, Owatonna, Mn., won the Executives Award for Volunteer Excellence, and Ferguson Lumber, Rockville, Mn., was presented the Excellence in Community Service Award.

South Dakota Retail Lumbermen Association holds its 91st annual convention Feb. 16-17 at Best Western Ramkota Hotel & Conference Center, Sioux Falls.

APA-The Engineered Wood Association installed Jeff Wagner, LP Building Products, as its new chairman at its recent annual meeting. Mary Jo Nyblad, Boise Cascade, was elected vice chair. Thomas G. Williamson, who recently retired from APA after a 42year career in the engineering and wood products industries, was honored with the Bronson J. Lewis Award. Safety awards went to Anthony Forest Products, Georgia-Pacific, LP Building Products, Roseburg Forest Products, Norbord, and RoyOMartin. Tim Fisher, Grenzebach Corp., Gladstone, Or., was elected vice chair of the Engineered Wood Technology Association Advisory Committee, succeeding Tim Ayers, who retired from Willamette Valley Co., Eugene, Or. EWTA is APA’s nonprofit organization for suppliers. Building-Products.com

MARGIN Builders Greener Windows

Sell more energyefficient windows

the latest windows is educating homeowners, builders and remodelers on how the products will save them not only energy, but money. Here are sales tips from the experts at Simonton: HE KEY TO SELLING

Tip 1 – Share facts. According to

the Department of Energy, the typical home loses over 25% of its heat through windows. Choosing Energy Star-labeled products for the home can cut energy bills by up to 30%. For details, visit www.energystar.gov.

Tip 2 – Talk investment. Energy-

efficient vinyl windows are an investment that provides ongoing payback for homeowners. From the day they’re installed, these windows save on energy bills. And, when it’s time to sell the home, energy-efficient windows are a great selling feature. For more details on the value of energy-efficient windows, direct your customers to the unbiased Efficient Windows Collaborative, www.efficientwindows.org.

Tip 3 – Showcase winning products. If the products you sell have won industry awards and recognition, make sure your customer knows about them. Honors like the Builder Quality Award and J.D. Power & Associates rankings guarantee quality products.

T ip 4 – Suggest a home energy audit. Homeowners can conduct a doit-yourself home energy audit at hes.lbl.gov. Sponsored by the DOE, the Home Energy Saver is designed to help consumers identify the best ways to save energy in their homes and locate the resources to make the savings turn into reality. Tip 5 – Sell the $1,500 tax credit. Share information with customers on 2009-2010 Energy Tax Credit glass

packages that can provide them with up to $1,500 in federal tax credit. It’s a great incentive to replace windows immediately. For more details, visit www.simonton.com/taxcredit.

Tip 6 – Educate on energy savings. Provide your customers with resources so they can gain credible, third-party facts on energy savings in the home. American Council for an Energy-Efficient Economy offers a home energy checklist at www.aceee. org. The American Architectural Manufacturers Association has consumer information on energy-efficient window selections at www.aamanet. org. National Association of Home Builders offers extensive consumer assistance at www.nahb.org. Tip 7 – Make their life easier. Put your customer’s mind at ease. Remind

them that vinyl windows are durable and easy to maintain. With vinyl frames, they never have to worry about scraping and repainting frames, insect infestations, or rotting. And, tilt-in double-hung and single-hung units make it simple to clean the outside of the windows from the inside of their home. For more info on vinyl, visit www.vinylinfo.org.

Tip 8 – Remove the fear factor. To many homeowners, the thought of having their windows replaced conjures up images of birds flying in their home and a house that looks like Swiss cheese. Calm their fears by explaining the entire window replacement process, offering a checklist of ways to prepare for a window replacement and by working out specific details far in advance.

T ip 9 – Visualize the future. While you may be selling windows to a couple in their 40s, it’s important to help them see the future. In 10 or 20 years, will these homeowners really want the potential back stress of opening double-hung windows? Or, would crank-out casement windows be a better long-term option?

Tip 10 – Seeing is believing. Use a window presenter demonstration kit to show homeowners the effect of heat on different types of window packages. A comparison demo can showcase different glass packages for the home and the value of energy-efficiency glass in windows.

STRESS to consumers that they should see their utility bills plummet after upgrading to more energy-efficient windows.

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Building Products Digest January 2010

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Strips on the Deck

ProFekt wood-look strips from United Plastics Corp. quickly beautify aging decks without power-washing or rebuilding. The strips are unrolled and installed with an adhesive over existing decks. The surface contains natural minerals to eliminate slipping and splinters, an ultraviolet stabilizer to minimize fading, and an antifungal treatment to prevent mold and mildew.

PROFEKTDECKS.COM (366) 786-2127

Tough Metal Shears

The cordless Bosch PS70 metal shear offers controlled, precise cutting in tight spaces. Small and lightweight, the tool can cut sheet metal up to 18gauge thickness. Four-sided cutting blades handle both straight and curved cuts with precision. A 12v Max Litheon battery platform offers fast charges and extended run time and battery life.

BOSCHTOOLS.COM (877) 267-2499

Building-Products.com

Triple Glazed Glass

Milgard has added a triple glazing option to its Tuscany line of vinyl replacement windows and patio doors. The option reportedly meets or exceeds qualifications for both EnergyStar and Energy Tax Stimulus programs. Other options include dual SunCoatMAX Low-E glass and an argon gas blend for improved insulation and energy savings.

MILGARD.COM (800) 645-4273

Composite Windows

Andersenâ€™s new 100 Series windows are built of Fibrex, a structural composite blend of sawdust and polymer. The products earned SCS certification for recycled content and indoor air quality. Styles include single-hung, casement, awning, picture and gliding.

ANDERSONWINDOWS.COM (800) 426-4261

January 2010 Building Products Digest

Slate-Look Shingles

StormMaster asphalt shingles from Atlas Roofing are now offered with the look of slate. Available in a full range of designer colors, the shingles reportedly resist cracking, splitting, warping and shrinking in both hot and cold climates. They are designed to withstand impacts, winds and wind-driven rain in excess of 100 mph.

ATLAS ROOFING.COM

No Snow Goes Below

Glacier Snow Guards from MM Products Inc. help prevent snow and ice from sliding off roofs, causing personal injury and property damage. Made from polycarbonate material, the guards have three large structural ribs for superior strength. Everseal adhesive applied to the waffle-design tread on the bottom ensures maximum holding power.

GLACIERSNOWGUARD.COM

Building Products Digest January 2010

Moisture Barrier

The new Delta footing barrier from CosellaDorken Products helps prevent moisture problems in full-height, insulated basements. The three-ply impermeable membrane is placed on top of freshly poured footings before foundations are poured. It creates a capillary break between footer and foundation to keep ground water from wicking up, entering, and accumulating in basement walls.

COSELLA-DORKEN.COM (888) 433-5824

Deeper I-Joists

Two new lines of deep I-joists from Boise Cascade are designed for environmentally friendly light commercial construction. The BCI 90E series and AllJoist AJS-30 series reportedly have higher design values to handle higher loads and longer spans, up to 44’. Both are available in depths of 18”, 20”, 22”, and 24”, with 1-1/2” deep and 3-1/2” wide Versa-Lam LVL flanges in lengths up to 48’.

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IN Memoriam Louis Kaitz, 86, chairman of the board of National Lumber, Newton, Ma., died Nov. 19 in Newton. Mr. Kaitz started working in the family business at age 16. After his father died, Mr. Kaitz and his three brothers ran the company. During World War II, he served in the Air Force as a metrologist. After the war, he went to Boston University and graduated from its school of management. When he was 55, he went back to school there and earned a master’s degree in American history. Donald R. Neves, 86, former owner and operator of Flax Pond Lumber Co., Dennis, Ma., and Neves Great Island Hardware, died from complications of lymphoma Dec. 15 in Carver, Ma. He served in the U.S. Army during World War II. William Earl Durham, 85, coowner of W.R. Durham & Sons Lumber, Hendersonville, Tn., died Nov. 19 in Hendersonville. He served in the Army during

World War II, mostly in Italy. When he returned home, he worked for several companies before he and his brother bought the family business from their uncle, John D. Durham. He remained active in the business until he became ill last year.

William “Bill” E. Stangland, 82, retired manager at I.N.R. Beatty Lumber, Morris, Il., died Dec. 9 in Morris. He retired at the end of 1993, after 45 years with I.N.R.

Joanna Sue Tutterow, 64, former co-owner of Tutterow Lumber, Little York, In., and Dehart Pallet & Lumber, Austin, In., died Nov. 27 in Jeffersonville. She owned the businesses with her husband, Charles Tutterow, before they sold them and retired in 2002. William D. Odenwelder Sr., 84, former owner of Odenwelder Electric & Hardware, Bethlehem, Pa., died Dec. 17 in East Stroudsburg, Pa. He was a veteran of the U.S. Navy

during World War II, serving in the South Pacific aboard a sub chaser. He owned and operated the hardware store from 1946 to 1966. Buford “Bud” R. Baldridge, 80, retired vice president of Beatty Lumber, Orland Park, Il., died Dec. 6 in Palos Heights, Il.

Richard J. Stephenitch, 81, retired owner of Ace Hardware, Mendota, Il., died Dec. 8, 2009 in Rockford, Il. He and his brother opened the store in 1969, operating it until he retired in 1987.

Douglas Edward Berlin, 88, retired woodlands manager, died Dec. 10 in Dallas, Tx. A veteran of World War II, he served in Company B, 714th Tank Battalion, 12th Armored Division. Following forest industry jobs in Memphis, Tn., and Joaquin, Tx., he became woodlands manager for Tremont Lumber Co., Joyce, Ar. He also worked for Crown Zellerbach as manager of the Bogalusa Managed Forest, Bogalusa, La., in 1982. He served on the board of the Louisiana Forestry Association.

Happy New Year from… Fifty percent of the proceeds from these business card ads benefits the Lance Armstrong Foundation, which for 12 years has been striving to aid cancer patients and survivors. Visit www.livestrong.org to continue the battle.

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January 2010 Building Products Digest

LBM Dealers Push for Tax Credits for Customers

The Obama Administration has consulted with both Lowe’s and Home Depot on a new government program that would encourage energy-efficient home improvements. “If this can drive sales at Lowe’s stores and put contractors and subcontractors back to work, that could have a very positive effect,” said Scott Mason, vice president of government affairs at Lowe’s. “We have seen home values decline around the country, and there are things that can be done with energy efficiency that can help drive home values up again.” Home Depot expressed support for “any program that provides incentives to consumers to make their homes more energy-efficient.” The proposed program, named Homestar, would cost $23 billion over two years. Of that amount, $6 billion would be used as incentives to people who complete at least two significant weatherization projects from a proposed list of 10 such projects. Homeowners who complete at least two eligible projects would receive up to $2,000, while up to four eligible projects would net up to $3,500—but government money could not pay for more than half of any project. Another $12 billion would reward homeowners who complete a weatherization project that reduces energy consumption by at least 20%, which would qualify for a $4,000 subsidy. Each additional 5% reduction would bring another $1,500, but government money could not pay for more than half of any project. Spot audits of completed improvements would be funded by another $2 billion. The remaining $3 billion would pay for incentives to contractors and home-improvement retailers such as Home Depot and Lowe’s.

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.

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U.S. Powers Tool Rebound

Global demand for power tools will climb 4% a year to surpass $28 billion by 2013, according to a recent Freedonia Group forecast. Despite the recession, the bedrock U.S. market will provide the best opportunities, accounting for over one-third of the growth from 2008 to 2013. Recovery in U.S. demand will reflect a turnaround in housing and continued enthusiasm for d-i-y projects. U.S. power tool sales will also benefit from the introduction of improved

Building Products Digest January 2010

products, especially cordless electric models. The BRIC economies—Brazil, Russia, India and China—will all fare well. Demand in China and India will

rise over 6% annually, thanks to rising construction spending and industrial production. Gains in Russia and Brazil will exceed the global average, due to aging buildings’ need for repairs. Building-Products.com

DATE Book

Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

Northwestern Lumber Association – Jan. 11-12, building products expo, Grand Casino, Hinckley Conference Center, Hinckley, Mn.; (763) 544-6822; www.nlassn.org.

Retail Lumber Dealers Assn. of Maine – Jan. 12, building & energy code preview, Embassy Suites, Portland, Me.; www.nrla.org. Do It Best Corp. – Jan. 13-15, winter conference, Orlando, Fl.; (260) 748-5300; www.doitbest.com.

Rhode Island Lumber & Building Materials Dealers Association – Jan. 13, Microsoft essentials for LBM dealers seminar, Humphrey’s Building Supply, Tiverton, R.I.; www.nrla.org.

Mid-America Lumbermens Association – Jan. 14-15, Kansas winter meeting, Pratt, Ks.; (800) 747-6529; www.themla.com.

House-Hasson Hardware Co. – Jan. 14-16, market, Opryland Resort, Nashville, Tn.; (865) 525-0471; www.househasson.com. Emery-Waterhouse – Jan. 15-16, market, Rhode Island Convention Center, Providence, R.I.; (207) 775-2371; www.emeryonline.com.

Buttery Co. – Jan. 16-17, dealer market, Bell County Exposition Center, Belton, Tx.; (325) 247-4141; www.butterycompany.com.

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.

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 Association – Feb. 22-24, annual convention, Morial Convention Center, New Orleans, La.; (847) 299-9070; www.nrca.net. Progressive Affiliated Lumbermen Co-Op – Feb. 23-25, annual conference & buyers mart, Rosen Plaza Hotel, Orlando, Fl.; (800) 748-8900; www.pal-coop.com.

Mid-Hudson Lumber Dealers Assn. – Jan. 19, Microsoft essentials, Russin Lumber, Montgomery, N.Y.; www.nrla.org.

Florida Building Material Association – Feb. 24-26, winter education conference, One Ocean Resort Hotel & Spa, Atlantic Beach, Fl.; (352) 383-0366; www.fbma.org.

International Builders Show – Jan. 19-22, Las Vegas Convention Center, Las Vegas, Nv.; (800) 368-5242; www.nahb.org.

Orgill Inc. – Feb. 25-27, spring market, Orange County Convention Center, Orlando, Fl.; (901) 754-8850; www.orgill.com.

Western New York Lumber Dealers Association – Jan. 19-20, basic estimating; Jan. 21, advanced estimating class, Radisson Hotel, Rochester, N.Y.; www.nrla.org. Mid-Hudson Lumber Dealers Association – Jan. 20, Microsoft essentials for LBM dealers seminar, Nanuet, N.Y.; www.nrla.org.

Appalachian Hardwood Manufacturers Association – Feb. 24-28, annual convention, Long Boat Key Club, Long Boat Key, Fl.; (336) 885-8315; www.appalachianwood.org.

Monroe Hardware – Jan. 23-24, market, Cabarrus Events Center, Concord, N.C.; (704) 289-3121; www.monroehardware.com.

Guardian Building Products – Jan. 24-26, market, Caesar’s Palace, Las Vegas, Nv.; (800) 569-4262; www.guardianbp.com.

Northeast Window & Door Assn. – Jan. 26, winter meeting, Architectural Testing, York, Pa.; (609) 799-4900; www.nwda.net.

Indiana Hardwood Lumbermen’s Association – Jan. 27-28, annual convention & expo, Indianapolis Marriott Downtown, Indianapolis, In.; (800) 640-4452; www.ihla.org.

Surfaces – Feb. 2-4, Sands Expo & Convention Center, Las Vegas, Nv.; (972) 536-6358; www.surfaces.com.

Southern Building Material Association – Feb. 3-4, show, Showplace Convention Center, High Point, N.C.; (704) 376-1503; www.southernbuilder.org. Northeastern Retail Lumber Association – Feb. 3-5, annual expo, Seaport World Trade Center, Boston, Ma.; (800) 292-6752; www.nrla.org.

Handy Hardware Wholesale – Feb. 4-6, dealer market, George R. Brown Convention Center, Houston, Tx.; (713) 644-1495; www.handyhardware.com. Mid South Building Material Dealers Association – Feb. 4-6, annual meeting & show, Imperial Palace Resort, Biloxi, Ms.; (877) 828-3315; www.mbmda.com.

Panel & Engineered Lumber Expo – Feb. 4-6, Omni Hotel at CNN Center, Atlanta, Ga.; (334) 834-1170; www.pelice-expo.com.

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, Building-Products.com

January 2010 Building Products Digest

IDEA File Making Beautiful Music

Although the typical consumer might assume that they’d find the biggest selection at their local big box, Texas retailer Elliott’s Hardware insists its three stores actually carry twice the number of items—and if they don’t have what you’re looking for, they’ll find a way to get it. In fact, customer service has really been what’s separated the imaginative independent from the supersized chains. And Elliott’s spreads the word through a torrent of unique promotions aimed at building ties with the communities surounding its stores in Dallas, Plano and Mesquite. After the holidays, they accept discarded Christmas trees and string lights to be recycled. They recently staged a Green Lifestyles Fair. And, most famously, in a stunt that made national headlines, the chain followed up a visit to the store last spring by George W. Bush by publicly offering the outgoing president a job as a greeter. Perks included a flexible part-time schedule, a seven-mile commute to his ranch, an opportunity to keep up on his people skills, ample parking for his security detail, employee discount, and company name tag with a big red W on it. (He graciously declined.) An ongoing success story has been partnering with the Dallas Wind Symphony. Elliott’s sponsored the symphony’s CD, Strictly Sousa, on the local classical radio station, which played one selection from the album each morning as its “March of the Day.” The chain was named on-air as the program sponsor and was given the exclusive right to sell the CD in its stores for the length of the promotion. Elliott’s also sponsored the symphony’s Christmas concert, its Fourth of July “Star Spangled Spectacular,” and the radio show “Summer Evenings with the Dallas Wind Symphony.” The store’s logo was printed on all promotional materials, and the company name was included in all radio ads. To help the symphony promote its season ticket sales drive, the chain hosted an on-site live broadcast in one of its stores. During the promotion, banners were displayed in the store, symphony volunteers handed out brochures, and small groups of musicians performed for shoppers. Elliott’s increased its foot traffic and sales in its stores and name recognition in the community. In addition to selling 3,000 copies of Strictly Sousa in just two weeks, the symphony also received higher attendance at its performances, new business sponsors, and a jump in season ticket sales. “Support of the arts is important to build customer loyalty,” said owner Charlie Bond. “It drives traffic into our stores and keeps our loyal customers coming back again and again.” 46

Building Products Digest January 2010

ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].

Anthony Forest Products [www.anthonyforest.com] .................17

California Timberline........................................................................4

Capital [www.capital-lumber.com]................................................41

Chicago Suburban Lumber Sales .................................................38 Columbia Vista Corporation [www.columbiavista.com].............30 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................45 Elder Wood Preserving [www.elderwoodpreserving.com] ........35

Fletcher Wood Solutions [www.tenonusa.com] ..........................33

Forest2Market [www.forest2market.com] ....................................31 Hankins Inc. [www.hankinsinc.com] ............................................23

Hoover Treated Wood Products [www.frtw.com]........................27

Ipe Clip Co., The [www.ipeclip.com].............................................42

KOMA Trimboards [www.komatrimboards.com]..............Cover IV Lumbermens Association of Texas [www.lat.org] ........................8 Matthews Marking Products [www.matthewsmarking.com] ......40

Nordic Engineered Wood Products [www.nordicewp.com].........3 Pennsylvania Lumbermens Mutual Insurance Co. [www.plmins.com] ....................................................................34

Ray White Lumber ..........................................................................11

RISI [www.risiinfo.com/crows] ......................................................32

Rosboro [www.rosboro.com] ........................................................29

RoyOMartin [www.royomartin.com] ...............................................7

Simpson Strong-Tie [www.strongtie.com]...........................Cover I Smith Millwork [www.smithmillwork.com]...................................26 Snider Industries [www.sniderindustries.com] ...........................37 Southern Forest Products Association [www.sfpa.org].............13

Ultimate Escapes [www.ultimateescapes.com/bpd].........Cover III

U.S. Lumber [www.uslumber.com]......................................Cover II Viance [www.treatedwood.com] .....................................................5

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