BPD July 2015

BPD

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

IMPROVE YOUR YARD LAYOUT

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Building Products Digest

TREATED WOOD FORECAST

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JULY 2015

APA SPECIAL ISSUE

BPD

July 2015

 Volume 34  Number 5

Building Products Digest

BPD

Building Products Digest www.building-products.com

A publication of 526 Media Group, Inc.

151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626

President/Publisher Patrick Adams padams@building-products.com Vice President Shelly Smith Adams sadams@building-products.com Publishers Emeritus Alan Oakes David Cutler Editor/Production Manager David Koenig david@building-products.com Associate Editor Stephanie Ornelas sornelas@building-products.com Contributing Editors Carla Waldemar, James Olsen Advertising Sales Manager Chuck Casey chuck@building-products.com Circulation Manager Heather Kelly hkelly@building-products.com

Special Features

In Every Issue

9 FEATURE STORY

6 ACROSS THE BOARD

THE FLAW IN YOUR YARD LAYOUT THAT’S KILLING YOUR EFFICIENCY

18 COMPETITIVE INTELLIGENCE

10 MARGIN BUILDERS

20 OLSEN ON SALES

GIVE YOUR CUSTOMERS THE BEST POSSIBLE TREATED WOOD EXPERIENCE

22 FAMILY BUSINESS

12 PRODUCT SPOTLIGHT

28 MOVERS & SHAKERS

14 MANAGEMENT TIPS

32 NEW PRODUCTS

LVL FOR ICONIC APPLICATIONS CREDIT AS A COMPETITIVE ADVANTAGE

50 ASSOCIATION UPDATE

16 NAWLA–THINKING AHEAD

KEY TO BETTER WAREHOUSE OPERATIONS

52 CLASSIFIED MARKETPLACE

38 SPECIAL FOCUS: APA ON EWP • • • • • •

52 IN MEMORIAM

INDUSTRY FORECAST TREATED GLULAMS FIRE-PROTECTED I-JOIST SYSTEMS WALL BRACING TRADEMARKS TOPS IN SAFETY

53 DATE BOOK 54 FLASHBACK 54 ADVERTISERS INDEX

Online BPD DIGITAL VERSION, BREAKING INDUSTRY NEWS & PHOTOS

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FOLLOW ON TWITTER

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Building Products Digest

THIS MONTH’S EDITION AS WELL BACK ISSUES OF BPD CAN BE VIEWED DIGITALLY AT BUILDING-PRODUCTS.COM

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July 2015

How to Advertise

PRINT or ONLINE Chuck Casey Phone (714) 486-2735 Fax 714-486-2745 chuck@building-products.com Patrick Adams Phone (714) 486-2735 Fax 714-486-2745 padams@building-products.com CLASSIFIED – David Koenig Phone (714) 486-2735 Fax 714-486-2745 david@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (714) 486-2735 Fax 714-486-2745 hkelly@building-products.com or send a check to 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626 U.S.A.: One year (12 issues), $24 Two years, $39 Three years, $54 SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping FOREIGN (Contact hkelly@building-products.com for surface and air rates, including to Canada)

BUILDING PRODUCTS DIGEST is published monthly at 151 Kalmus Dr., Ste. D200, Costa Mesa, CA 92626, (714) 486-2735, Fax 714-486-2745, www.building-products.com, by 526 Media Group, 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®2015 by 526 Media Group, 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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ACROSS the Board

By Patrick Adams

Building bigger… or better?

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T SHOULDN’T COME

as any surprise that, like most of you, I work for my family. It’s why all of us do what we do and the reward really can be just a smile or a thank you. When my 4-year-old said, “Daddy, I really want a playhouse!” nothing else needed to be said.

I found myself in the backyard at the end of a long weekend of projects, already a bit sore from tackling things that the young guy who lives in my head could handle, but the older body he occupies sometimes rejects. Of course I have time for one more to make my little girl smile!

As the building started, like most guys I immediately began thinking about modifications that would make it better. What if I added a patio cover to it? What about stairs to an upper deck? Maybe I could add a “garage” that doubles as a dog house? It struck me in this frenzy of “custom building” that every example of “better” that I was considering was actually just BIGGER. What I wasn’t thinking was whether this playhouse would last long enough for my grandkids. Whether it would stand up to the elements and the inevitable rough play as my daughter and her friends grew over the years. If where I built it would be the place that I wanted to look at and remember all of the happy times that I watched her over the years.

I believe that every culture has something so deeply engrained in it that it almost becomes part of our DNA. For us, I think that we are “builders”—we dream big and we find

a way to make it happen regardless of the odds or obstacles.

It is just part of what makes America the greatest country on Earth. As I was now focused on the quality of the fasteners I was using and how strong my foundation was, I wondered how often we distinguish “bigger” and “better.”

Does a homebuyer walk into two homes in the same neighborhood, for the same price, and pick the smaller one because it was built to a higher level of craftsmanship? When a company acquires another, is it to make the new combined organization better for the employees, customers and industry—or to make it bigger? Which is the bigger (or better) benefit… being bigger or being better?

In my career, I have worked for over a dozen companies and quickly became the guy people called when they needed big things to happen. That fix-it, turn-around or aggressive growth specialty led me to many challenges associated with mergers, acquisitions or organizations looking to change.

Funny that I can’t remember a single time where part of the goal was to build something sustainable and long lasting or create a plan that put the customer first, regardless of other ambitions.

I recently read a study that surveyed companies who have been in business for over 100 years. Some of the interesting points that stood out were in the 1920s, the average age of companies in the S&P 500 was 67 years. In 2013, it was less than 15 years. From survey results it shared what made these companies different was their priority on things like corporate identity and culture, a focus on their core strengths, a value on relationships with their suppliers, customers and local community and plans for leadership succession.

In our growing consumer mentality, are we beginning to think everything is consumable? That it’s easier to just get something new than to build something that lasts? The biggest thing that attracted me to BPD is that these publications have served this industry for almost 100 years and most of our employees have been here since their college years.

Many of our best clients have served their customers for over 100 years! There is a time for bigger and there is a time for better—and it has been a long time since I have seen them go hand in hand. For me, I am focused on BETTER because I can tell you from experience that in the long run, better always wins! In this age of constant mergers and acquisitions, I hope this starts a conversation about what’s “best” for the industry, the employees, the customers, and the legacy of some of the greatest success stories in business.

Now, I have to get back to work on building a playhouse that will last long enough for my grandkids to play in! I’m grateful for the continued support and look forward to hearing your thoughts!

Patrick S. Adams Publisher/President padams@building-products.com

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Building-Products.com

FEATURE Story

By David Koenig

The layout flaw that’s killing your efficiency

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ANY LBM COMPANIES are operating at razor-thin margins.

They’ve cut extraneous costs. They’re buying wisely. They’re getting their name out and, as best as they can, customers in. Is there anything else they can do to improve their fortunes?

Usually, there’s one last opportunity, according to Ron Johnson, Johnson Design Services, Portland, Me., who has spent over 30 years helping retailers boost profits by making their store and yard layouts more efficient.

“Most everyone is buying from a buying group so they are buying right; the market, being what it is, determines the selling price,” he notes.

“The only opportunity to increase margins and profits is reducing the operating costs through efficiency improvements.”

Over the years, he’s advised over 600 stores and 225 yards, and keeps encountering one primary layout flaw: The products aren’t in the right place. “There have been countless studies,” Johnson says. “In the yard and in the store, certain departments should be in certain locations. If you walk into a grocery store, the milk is usually in the far left corner, produce is front right. Fruit and vegetables are perishable and provide the highest profit margins, so they should be up front. Milk and eggs are on everybody’s grocery list, so everyone has to walk through the store, to the back, to get them.”

Hardware stores have similar design parameters—planned purchases like nails and fasteners out back, impulse/decorative/high-margin products like paint sundries and seasonal up front.

In the yard, “pick tickets” are

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reviewed to compile a thorough list of the products that are consistently shipping together. On the receiving end, if a product is sold by full unit then the emphasis is on easy placement; if it is sold by the piece, then the focus on easy access for the multiple trips staff will make to that location.

“Products should be strategically placed to minimize handling and forklift driving time,” Johnson says. “Most folks can see a 25% to 35% reduction in operating costs, such as fuel costs and wear and tear on forklifts. Some have even seen in excess of 50%.”

Johnson provides his clients with a five- or 10-year master plan, breaking out concrete steps that dealers can implement as the budget allows. If new buildings, lumber racking, or store fixtures are involved, Johnson

fully specifies all materials required and coordinates quotes from high quality manufacturers.

“When making a significant capital investment, it is always wise to purchase buildings and equipment that are structurally stronger and fully rust protected,” he says.

More than once, he’s had to suggest starting from scratch. “Many of these lumberyards have been around a long time,” he says. “The town’s grown up around it. There’s no room to grow, and it’s become difficult to do the job. The neighborhood would also be happy to see them relocate to a more commercial side of town.”

Fortunately, not every fix costs a fortune—but they could save you one.

It may be time to look at your yard and store layouts with fresh eyes.

STRATEGICALLY reconfiguring your drive-thru lumberyard can slash operating costs.

(Photo by Hartville Hardware) July 2015

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Building Products Digest

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MARGIN Builders

By Arch Wood Protection

Conversations in the lumber aisle How to give customers the best treated wood experience

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EACHING STORE EMPLOYEES to ask customers about how treated wood will be used will go a long way toward ensuring your customers have a positive experience—both with your store and with pressure treated wood.

Following are questions store employees should ask buyers of treat-

ed wood to help them choose the right wood for their project.

• Will the material be used on or in the ground? Or in fresh water?

• Will the material be supporting a structure or difficult to replace?

(Think posts, beams, and joists.)

• Is the final use LESS THAN 6” ABOVE THE GROUND, and supported by porous materials such as treated wood or concrete?

• Will air circulation be restricted under the structure or between boards?

GROUND CONTACT treated wood should be used for decks built on grade.

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• Are mulch, leaves, vegetation or debris likely to build up under the structure?

• Will the project get wet on a frequent basis? (Think sprinkler, hot tub, or low-level dock.)

• Is the material in contact with untreated wood or older construction with evidence of decay?

• Is the material being used in a subtropical or tropical climate such as southern Florida, Hawaii or the Caribbean?

If the answer to any of these questions is yes, then the customer should use wood products treated to “ground contact” preservative retention level.

If your store doesn’t stock this material, the employee should offer to special order it for the customer.

Why? Regardless of whether treated wood is used physically above ground, when it is supporting a structure, is difficult to replace, or used in close proximity to the ground, around fresh water, or in tropical climates, the wood should be treated to a “ground contact” preservative retention level, or greater.

Examples are: • exterior joists, posts and beams • decking subject to frequent wetting (such as from sprinklers, hot tubs, A/C units) • decking that’s less than 6” from the ground and supported by treated wood or concrete • any material in areas where air circulation is insufficient, preventing the wood from drying • fresh water dock platforms subject to immersion or frequent wetting from wind, waves, or changes in water level In addition, “heavy duty ground contact” preservative retention should be used for critical members and ground contact material that is located in tropical or subtropical climates or that comes into contact with salt water splash.

Following these guidelines, which are consistent with recent AWPA developments, will help ensure your customers get the best service life from treated wood. Proving to customers that your staff cares and is knowledgeable enough to guide them to the correct product for their needs will keep them coming back.

– For more information on proper use of treated wood, visit Wolmanized Wood University at www.wolmanizedwoodu.com.

Building-Products.com

UPSURGE in multifamily construction is increasing the percentage of fire retardant treated materials wood preservers sell.

(Photo by Hoover Treated Wood Products)

Survey: Treated Wood Forecast This spring, BPD surveyed a national cross-section of wood treaters, to gauge what they were selling and what they expected to sell, treatment by treatment.

On average, wood preservers queried were treating about twothirds of their volume with micronized copper azole, although several were treating nothing but.

ACQ was a distant second.

Yet, numerous treaters pointed to fire retardant wood as their fastest growing product. “We are seeing a gradual but real increase over the last few years in the amount of fire retardant we are treating, mostly for commercial applications,” shared one Midwestern treater. “Ten years ago, our fire retardant percentage was probably in the 5% range. It’s now double that.”

Similarly, a Western treater expects 2015 sales to be about 10% higher than 2014 for all treatments, with FRTW the strongest.

“There is more multifamily construction, particularly apartments, which requires more fire retardant treated wood than single-family,” the owner reported. “We expect this trend to continue.”

A Southern treater likewise said overall sales are continuing to rise.

“Last year export sales were slightly down and domestic sales were up 16%,” he said. “We expect domestic sales to continue trending up at a 5% to 7% pace annually

July 2015

and export to keep trending slightly downward due to slowed tourism.”

In the Southeast, another wood treater says business picked up immediately after the start of the year. “Sales have outdone last year’s to this point,” he said. “I feel like its going to be a great year for treaters and the overall home building markets.”

A Midwest treater expects his mix to hold steady, with the possible exception of fire retardants increasing above their current 10%. “I don’t see anything that will change these numbers significantly unless codes change and FRT becomes more prevalent,” he explained.

Another Midwest treater is seeing conflicting signs in “ag country.” He noted, “In the coming year, we expect CCA to stay about the same, as cattle prices are going up. That business will increase, but the oil industry is slowing down.

On the MCA side, we have a strong market due to new home construction, but again the oil industry is slowing down.”

The product mix continues to evolve for a large Southern wood preserver, who noted, “The MCA volumes are growing and the ACQ volumes are trending smaller. Our treated sales are on a slight yearover-year increase, and we see this continuing for the next two to three years.”

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PRODUCT Spotlight Engineered Wood

LVL could have been used in iconic skyscraper

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INNISH EWP PRODUCER Metsä Wood has launched a new “Plan B” campaign to promote the use of wood by envisioning how iconic structures like the Roman Coliseum could have been constructed with wood.

Its latest reimagining is New York’s 103-stories-tall Empire State Building. The plan, designed in partnership with Canadian architect Michael Green, is being touted as “the first new way to build a skyscraper in 100 years.”

The Empire State Building represented the innovativeness of structural steel in the 1920s. At 1,250 feet, it stood as the tallest building in the world for nearly 40 years.

“While many things have changed in 85 years, architects still strive to give form to new ideas about structure, energy consumption, climate change, and the list goes on,” Green said. “We designed a skyscraper using Metsä Wood’s Kerto LVL engineered wood as the main material from floors

to column spacing.”

Green is a strong believer that highrise wooden buildings are not only possible, but may be the most practical and environmentally sound solution to addressing rapid global urbanization and climate change. “I believe that the future belongs to tall wooden buildings,” he said. “Significant advancements in engineered wood and mass timber products have created a new vision for what is possible for safe, tall, urban wood buildings. The chal-

PRODUCER Metsä Wood and Michael Green have designed a wooden version of the Empire State Building.

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USING WOOD to recreate the 103-story-tall landmark is billed as being the first new way to build a skyscraper in 100 years.

lenge now is to change society’s perception of what’s possible.”

Wood is not only a highly aesthetic and sustainable option, but also efficient, fast to construct, and it enables light structures. Wood is also a more fire-resistant material than ordinarily perceived.

“Wood construction is an everevolving business, and the market needs more innovative, sustainable, faster and effective solutions,” explain Jari Tikkanen, senior VP for Metsä Building-Products.com

Wood. “Metsä Wood is strong in Europe, with ambitious global growth targets in USA and Asia.”

Plan B challenges widespread preconceptions and explores the various possibilities of wood construction. As a part of the project, Metsä Wood shows in detail how to build recognizable yet modern versions of worldknown architectural buildings using wood as the main material. The concept’s main target groups are architects, engineers and builders.

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Building Products Digest

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MANAGEMENT Tips Scott Simpson, BlueTarp Financial

Turn your credit program into a competitive advantage

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OUR PRODUCTS , pricing and customer relationships are likely the cornerstones of how you attract and keep your professional customers. But have you ever considered how your credit program could provide you with a strong competitive advantage?

If you’re like most LBM suppliers, your credit program probably doesn’t make you think about growth and competitive advantage. It probably does the opposite, bringing on fears of restricted cash flow, investment constraints, and worries of uncollectible revenue. It doesn’t have to.

Consider four ways your program can deliver a competitive advantage: 1. Win more business by offering larger lines and longer pay cycles The building industry is getting back on track and many of your customers are looking to take on more and larger jobs. With this comes the need for larger lines of credit and longer pay cycles. By offering pros more of what they need, you’ll earn more of their business.

With in-house credit, you may not always be able to meet these credit needs. You could tap your bank line to free up the cash to fund it, but this could restrict your investments in other areas. And, the additional credit exposure may increase your risk to a

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level that you’re not comfortable with or that could impact your profitability.

One option is a professional credit management service that can offer larger lines and extended terms for your customers—without risk to you.

Companies provide credit services such as extending credit, billing, and collecting on invoices, while also guaranteeing your payments. You can get paid for every sale without having to wait 60 to 90 days or more—which means you can offer your customers what they need without draining your cash or taking on increased risk.

2. Offer better service, more products Your customers rely on you for your expertise and product selection— what if they could get more of both? If you and your team had more time to focus on helping customers find the right products to meet their needs, they’d likely buy more from you.

Likewise, if you could expand the range of products and services you offer, you could meet a wider range of their building needs and earn more of their spending.

Offloading other work from you and your team can help you gain back time that you can focus on your business and serving your customers. How much time could be gained if you were not burdened with credit deciJuly 2015

sions, billing paperwork, and chasing receivables? And how much more could you invest in your inventory and product selection if you could free up the cash you use to fund credit and reinvest it in your business?

Utilizing a credit management service allows you to focus on customer service and frees up cash so you can invest in inventory and new products.

With credit checks, invoicing and collections off your plate, you and your staff will have more time to make sales and help customers solve problems. And with the predictable, guaranteed cash flow you’ll get from every sale, you can confidently invest in building inventory, product selection, or hiring more sales staff.

3. Help customers better manage their business Your pro customers are busy helping their customers and they often struggle to find time to manage their books, pay their bills, and invoice their customers. You can help them do these things more efficiently by offering technology and services that help them better manage their business.

And when you help them focus on their business and its success, they reward you with loyalty and growth.

A credit service can provide you with web-based tools that let your pro customers create customized invoices and easily track and organize their job expenses. Your customers gain 24/7 secure online access to their accounts and the ability to pay when it’s convenient for them.

4. Reward customers, build loyalty A rewards program helps you thank your customers for their business and gives them more reasons to spend with you. But managing a rewards program can be time consuming and complex.

Working with a credit service makes it easy for you to offer enticing rewards such as travel, sports packages, and brand-name merchandise, without the overhead and expense.

You can also pick which customers qualify for rewards, so you can use the program to drive spending with your biggest and most profitable customers or to win new ones.

If you’re serious about sharpening your competitive edge, consider how a credit service can keep your customers coming back for more by giving them more of what they want.

– Scott Simpson is president and CEO of BlueTarp Financial. Reach him at (207) 797-5900 or ssimpson@bluetarp.com.

Building-Products.com

THINKING Ahead

By Carl Lamb, General Manager/VP Snavely Forest Products

4 ways to improve

warehouse operations and efficiency

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ANAGING WAREHOUSE logistics is tricky, especially in the post-recession world, in which companies are trying to save time and money in every transaction.

The key to success for any distributor is warehouse operations efficiency. When efficiency lags, lead times suffer, orders can be misplaced, and low inventory levels can lead to stock-outs and low fill rates. A universal problem for all distributors, limited warehouse space can hinder efficiency. Simply put, as sales increase, more space is required.

To combat these challenges, measuring Key Performance Indicators (KPIs) and benchmarking against other similar companies will drive warehouse efficiencies.

Best-in-class distributors have a real-time view of warehouse order status, inventory and labor and utilize technology, formal cross training of associates and measurement of their KPIs. Each of these solutions falls into one of the following four main categories for increasing warehouse operations and efficiency.

1. Maintain a Real-Time View of Warehouse Inventory

One key to running an efficient warehouse involves maintaining a real-time view of warehouse order status, inventory and labor. Now with the use of technology, a lag from when the product is received in the warehouse to the time that it is received in our enterprise resource planning (ERP) no longer exists. Additionally, our sales team is able to see in real time what orders are being picked or have been staged for shipment.

When a change must be made to an order, we no longer have to find the original pick ticket and to see if it has already been picked, which eliminates the potential for duplicate orders.

We have achieved this real-time view using our ware-

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house management system (WMS). Our inside team can be confident that, if our ERP says we have an item, it is in stock and in good condition. Our operations manager is able to manage the day’s work in real-time and see what is being pulled by the employees and what their production level is that day. Each morning when he comes into work, he is able to determine what the workload is and allocate resources accordingly.

We also implemented an overnight shift to help regulate the workflow to ensure that the day shift can focus on receiving, replenishing inventory bins, and handling returns and will-calls. The night shift can then complete orders, pull add-on orders and load trucks.

This allocation of duties allows an efficient product flow throughout the day. Ever-changing customer demands dictate the need for increased flexibility in existing facilities.

2. Harness the Power of Real-Time Technology

To further support warehouse process improvement and ensure business goals are being met, gathering and

Building-Products.com

A Special Series from North American Wholesale Lumber Association analyzing real-time data helps create a more efficient warehouse. Select a WMS system that integrates seamlessly with your ERP and supply chain systems. WMS systems can help manage material handling in real time, which will maximize system throughput and performance, and provide visibility to potential logjams.

When laying out our distribution center, we made a point to keep our high turn products in the front of the warehouse and slower turn products in back, making replenishment and stock rotation easier. Training new employees on the system was easier than training new employees on all of the different SKU’s we kept in stock.

A new employee could begin picking orders within a couple of days, and the order accuracy greatly improved. Our WMS system lets us compare employee performance against pre-determined standards and allows us real-time analysis of our KPI’s.

3. Organize Distribution Centers for Full Efficiency

Organizing an overcrowded distribution center and fully utilizing the space available is crucial to running an efficient warehouse. Slow or nonmoving inventory cuts into productive warehouse space. Consider options such as discounting slow moving inventory and providing extra incentives to your salespeople to sell the slow or nonmoving inventory.

Additionally, warehouse space can be taken up by returned material that still needs to be processed and either put back into inventory or destroyed. Handling these returns as they come in will free up inventory space and prevent a backlog of work. Slow moving inventory and returns are taking up space that should be used for profitable inventory.

In addition to cleaning up returns and moving off dead stock, changing the equipment to better suit your situation may be an option. At our Maryland distribution center, we are transitioning to narrow-aisle fork trucks in order to reduce the aisle sizes. By reducing the aisle size, we can increase our space for inventory by 25%.

Cross training employees on functions other than their own will help create operational readiness, while promoting teamwork across departments. At times, there is an unbalanced workflow in your organization. Having employees who can perform a number of different tasks allows you to move employees from one department to another to respond to these fluctuations.

In order to properly implement a cross-training program, you need to identify the specific critical tasks that require cross training. Additionally, you need to identify the people capable of performing the tasks. Schedule time and funds needed for training, then recognize and reward employees who have successfully gone through a crosstraining program.

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Cross training delivers two key benefits to your organization: better employee morale and delivering products to customers on time without glitches. Maximize profits and establish competitive advantage with cross training.

4. Track Results & Keep Evolving

Measure results and implement changes to improve your warehouse performance. The most innovative warehouse operators are drilling into their warehouse data to understand the true cost to serve each customer and fill each order type. Then, put programs in place that lead to improved gross margins.

Through the increased use of technology, we can measure order fulfillment, inventory management and warehouse performance metrics. Within order fulfillment, we measure on-time delivery percentage, fill rates percentages and order accuracy. We have a zero-error program that rewards our employees for pulling orders accurately and incentivizes the warehouse employees to do it right the first time. With WMS, we have increased our inventory accuracy and can monitor our replenishments so that we are working more efficiently, and track line items picked per hour and measure individual employee productivity.

Finally, we can benchmark what production level our different storeroom areas should be able to perform at, train our employees on what the expectations are and work with them to increase their productivity. By constantly measuring results and implementing changes, we are able to continually improve our warehouse efficiency.

Companies are expecting more from their warehouse and distribution centers operations. Real-time visibility to inventory, order status, and task statuses are expected.

Increased use of available technology will provide you with visibility, better metrics, warehouse data, and improved productivity. Organizing your warehouse and changing equipment to increase the amount of usable production space will allow you to grow sales while keeping inventory onsite. Building cross-trained and cross-functional teams will allow flexibility to react to the fluctuations in business and seasonal businesses. Measure results, implement changes, analyze the data, and ultimately create a more efficient warehouse.

About NAWLA

North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more at www.nawla.org.

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COMPETITIVE Intelligence

By Carla Waldemar

Changing the View

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USINESS WAS BRISK when Jim DePretto and Rick Jensen bought Bayview Building Materials in 2003.

It was one of a stable of eight lumberyards and plants being sold by the outfit’s second-generation owner, whose father had launched the mini-empire in 1952 after returning from World War II with a Medal of Honor. Now it was time for this gent, too, to hang up his apron and haul out the rocking chair.

The new partners were no babes in the woodpile. Jim was a former regional manager of a hardware chain and Rick a building-materials store manager (who had, indeed, managed one of the Bayview outposts for 10 years). These days Rick focuses on contractor sales and purchasing, while Jim takes on the retail operation.

The location the partners purchased—officially titled Bayview Building Materials of Olympia— sounds pretty grand and glam, but it’s not actually within the streetscape of Washington’s state capitol at all. It’s really in Elma, 30 miles west—a onestoplight bump on the map that had pinned its claim to fame and fortune on a proposed nuclear power plant that

never got completed.

“So the town had struggles,” Jim allows. “But as the economy started improving again, it grew—at least, a little bit, in the early 2000s.”And Bayview was there to aid that growth, supplying the quality lumber for which it’s known to the custom and spec homes under its contractors’ hammers and delivering product “all over west Washington.” But you know what happened in the depths of the ensuing recession: contractors went dormant.

But not Bayview. The partners made a U-turn in their business plan.

“We became motivated to grow and expand the retail side.”All it takes is walk-ins, right?

But who would want to? “We realized our old building looked old—had never been remodeled in over 20 years. We occupied an old warehouse that looked like an old warehouse— well-positioned, anchoring the intersection of two major highways. But it needed to make a statement: It was now or never.”

It needed to get peoples’ attention as more than a yard to pick up sticks,

NEW OWNERS expanded, remerchandised and ultimately reinvigorated a 50-year-old business.

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so a makeover of the façade was first on the to-do list. “We needed to make sure the building cast a positive impact—that it said ‘retail,’ not just ‘lumber’: not make that the biggest focus—something we’d been trying to convey for many years but missed before. Now all departments are welllettered across the front of the building,” spotlighting the array of departments ready to serve homeowners.

“We also doubled the retail space from 6,000 to 12,000 sq. ft. We kicked the back wall out and added 50 ft. of depth—a bright, new, well-lit retail area that’s been extremely wellreceived. Our goal,” divulges Jim, who’s clearly read his market research, “was to attract female shoppers,” who would never have considered clambering over dusty stacks of 2x4s to search for kitchen cabinets.

Responding to customer surveys (“more lawn & garden, more outdoor living, more rental”)—Bayview tripled its L&G, building a climatecontrolled greenhouse to stock live plants year-round. It enhanced its outdoor living category, doubled its fastener selection, and expanded the rental department they’d launched in 2008, a service that’s “definitely making money and continues to grow in sales every year.”

They also tried their hand at Christmas items. The trees didn’t exactly fly off the lot, but Jim rates the holiday-offering attempt as “not earthshattering, but pretty successful for the first time out”—a concept he thinks holds “lots of promise.”

With the makeover, lawn and garden sales doubled, outdoor living sales tripled, and even the previously robust stand-bys improved. “We’d had strong cabinet and plumbing departments Building-Products.com

before, but we added design amenities like towel racks and faucets.” Result of the overhaul: Customer count leapt 11% and sales for the recently-closed fiscal year were up 13%.

Double-digit growth annually for the last three years, in fact. Doing something right.

But the key to success, Jim acknowledges, doesn’t lie in simply adding SKUs. “It’s having the right people in the right places.” In those initial golden years, staff numbered over 40; during the downturn the count was trimmed by half—“a big thing. We learned more about controlling.

An,d we also eliminated our installed insulation division, with no regrets.” Today, with Bayview firmly in growthand-expansion mode, hiring is on the upswing.

The lesson Jim learned, he says, is this: “More than anything, it’s about not letting the good ones get away. If a resume is promising, I want to talk! For instance, I just hired someone who comes with ten years’ experience at Home Depot, a very good fit. And I’ve two resumes on my desk right now that have got me very excited.”

Why do people like working here, then? “The hands-on leadership,” Jim declares. “We [partners] are here every day, so it’s like a family.”

Contractors feel the love, too. “More than anything else, they appreciate our people’s knowledge. The staff knows about building houses and what the customer needs. With the contractors, it’s kind of interesting: It’s mainly a phone business. They say ‘I want …. ’ and then our guys will say, ‘Wait a second! You’ll also need….’ It saves the customers’ time.”

And time is money. Speaking of which, Bayview prides itself on carrying only the highest-quality lumber—kilndried Doug fir, for which they pay a little more, indeed,

“but they know it’s worth it,” reports Jim. “We recently landed a couple of larger builders we hadn’t done business with before. Our quality products caught their eye. Maybe they’ve been dealing with someone else, but if and when a problem occurs, they come to us—right place, right time— an easy switch.”

While those pros are treasured, of course, that former 75/25 ratio—toxic during the downturn—is changing as Bayview aggressively courts DIYers—“exactly who we want to see, especially females,” Jim doubles down on his primary goal. New business is courted via targeted social media. “It works, and it’s easy to measure,” he says. “For instance, we launched a ‘post boost’ featuring hanging baskets for Mothers Day. We posted it on a Friday and sold out that weekend.

“And we’re about to host our first Ladies Night, announced on social media, with opportunities to learn and meet with vendors’ reps: a show-andtell type of thing, with discounts and opportunities to win prizes,” building on the success of grand opening events a year ago in May. Thus Bayview continues to stir up action in “a pretty quiet little town.” Pledges Jim, who loves it, and loves his job: “I’m here until I retire, no doubt about it!”

Carla Waldemar cwaldemar@comcast.net

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July 2015

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Building Products Digest

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19

OLSEN On Sales

By James Olsen

The key to closing “G

OOD MORNING , J OHN . This is Bob from At Your Service Lumber. I’ve got a load of 2x4 14’s I can get into you at $350/MBF.” Bob then waits in respectful silence for John to decide.

Or “Good morning, John. This is Bob from At Your Service. I’ve got a load of 2x4 14’s I can get into you at $350/MBF, what do you think?”

Many sellers think these are sales calls. They’re not.

This is presenting product and letting the customer decide. This kind of work can be done by a computer or a catalog. Tragically, this approach works sporadically enough to fool (some) salespeople into thinking that it is salesmanship.

No! Hurts

After 10 “no’s” most people become dejected and disillusioned. They get tired of hearing them. The solution is simple. Stop asking for the business. Many fool themselves into thinking they are doing sales work, but they are merely quotrons, presenting product and dispensing information.

Product presenters, information dispensers, and quotrons do get business from time to time, but nowhere near the rate of a true salesperson.

We are salespeople. We ask for the business, the order, the commitment. Our customers know this when they come to the phone or take our meeting, so why aren’t more salespeople asking for the order? Because we don’t like to hear “no.” It starts when we are in our “terrible twos” and continues through adolescence and beyond. No is painful.

Master sellers don’t think of no in the same way that struggling sellers do. They understand that the no is coming and strategize to overcome it. They never take no personally. When it rains, we don’t stomp our foot and pout, we just get an umbrella.

What’s Your Price on 2x4 14’s?

Closers share information; information dispensers and quotrons give it away.

Customer: “Hey, Bob. What’s your price on 2x4 14’s?”

Bob the Quotron: “$350.”

Customer: “Okay, thanks. I really appreciate it. I’ll get back to you.”

Bob the Quotron: “Okay. If I’m close on that, I can probably get you a couple bucks off.”

Compare that interchange to: Customer: “Hey, Carl. What’s your price on 2x4 14’s?”

Carl the Closer: “I’ve got some great deals on 14’s; how many do you need?”

Customer: “Maybe one or two. What’s your price?”

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July 2015

Carl the Closer: “We’ve sold seven today at $350. I’ve got three left. I can work with you on shipment. Please give me your order numbers on those, before they’re gone.”

There are three differences between a quotron and a closer. A closer: • tells the customer why—and gives them reasons—they should buy.

• asks for the order.

• holds back the price.

For example: “Good morning, John. This is Mason from Majestic Lumber. I’ve got a great deal on a block of 2x4 14’s. We’ve been selling them well; the market is very tight. We are looking for more and can’t find them within $20/MBF of the price we have. How many can you use?”

Or “Good morning, John. This is Martha from Majestic. We just picked up a block of 2x4 14’s. I know you need these. Let me tell you why you should buy more than one: The market is firm and moving higher on 14’s. 14’s are undervalued compared to all other lengths in 2x4. You and I have been shopping them for three weeks.

Now’s the time. How many can you use?”

Giving reasons to buy is vital. We must convince ourselves before we call the customer. We prepare our reasons.

We prepare to ask for the business.

Product presenters throw up all their information (power) at once, leaving no mystery (or power—they’ve given it all to the customer) to their calls. This approach creates a litany of “I’ll-let-you-knows” and “I’ll-get-backto-yas.”

Humans want to know “what’s behind curtain number one?” Holding back the price will encourage our customers to engage with us. It will guide them into “yes-no” vs. “maybe-so” conversations.

If we walk around with a bucket long enough we will eventually collect some water, but that does not make us excellent water collectors. We are just walking around waiting for it to rain.

The master seller makes it rain, by asking for the business.

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com Building-Products.com

Building-Products.com

July 2015

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Building Products Digest

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21

FAMILY Business

By Wayne Rivers

Pruning the family tree

A

RECENT article in Family Business Review discussed a concept called “pruning the family tree.” Even gardeners like me who have a brown thumb and can barely grow grass understand the need for strategically pruning from time to time in order to maintain optimum plant health, yet we don’t bring that horticultural health mindset to our own family and closely held businesses.

Authors Johan Lambrecht and Josef Lievens researched 20 years of scholarly articles on family businesses and found that not a single one dealt with pruning the family tree. What they did find were many valid reasons for undertaking a critical evaluation of your family business and considering if it’s time for some strategic pruning.

First, they noted “the length between the evolution of the lifecycle of a family business and the degree of intensity of the family ties assumes an inverted u-shape.” Family ties strengthen in the second generation of the family business before weakening in the third. This is a very reasonable assumption; brothers and sisters are generally closer than cousins.

Second, they found “differing goals and objectives among different generations of family owners threaten the long-term welfare of the family company.” This is undoubtedly the case.

The Bible tells us “where there is no vision, the people perish” (Proverbs 29:18). Furthermore “conflicts are especially apt to occur when the distribution of ownership is balanced between competing blocks. The rival blocks may have different interests and roles, and their votes enable them to cancel one another’s initiatives.”

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Rival blocks can create that family business condition of stagnation we call “deciding not to decide.”

Third, “increased family complexity can also constrain business growth and lead to lower company performance.” The authors conclude that “simplification of the ownership structure is a critical precondition for putting the growth engine in motion and keeping it on… Family businesses more than a century old owe their great age to pruning, among other things. They limit the number of family shareholders.”

Look at the family genogram below. Broadly stated, both the family and the business have grown over the generations. The founding parents had three children who each ended up owning 33% of the business. Their three kids had a total of nine grand-

children, with each offspring sharing in their line’s one-third ownership.

Sensing that managing both business and family affairs had become too complex, two strong-willed, enterprising third-generation members bought out their siblings and cousins with the result that the family tree, which will likely continue to expand over time, will no long directly affect business ownership. Two entrepreneurs have consolidated ownership as the two founding entrepreneurs once did.

The shape of the typical family business ownership evolution broadly resembles a diamond. That is, ownership initially rests in the hands of one or a tiny group of people, and, after several generations, ownership again rests in the hands of only a few. This is much more the reality of family businesses than the broadly accepted, ever-expanding model of founding generation followed by sibling partnership followed by cousin consortium. It’s simply not reasonable to think that over long periods of time, all family members are going to be temperamentally or practically capable of sharing the rights and privileges of ownership. This model can work, but it is the exception rather than the rule.

Will all family members feel fairly and equitably treated during the ownership reconsolidation process?

Probably not. However, for many family businesses whose owners no longer share common goals and visions, pruning the family tree may actually improve family relations.

– Wayne Rivers is president of The Family Business Institute, Inc. (www.familybusinessinstitute.com).

During Gen III, Family Tree Pruning Takes Place July 2015

Building-Products.com

Stock to Merge with BMC

Publicly held Stock Building Supply, Raleigh, N.C., has agreed to merge with privately held Building Materials Holding Corp., Atlanta, Ga., in a stock swap.

BMC stockholders will receive roughly a half-share of Stock Building Supply stock for each BMC share.

Upon closing, expected in the fourth quarter, BMC owners will hold about 60% of the merged company.

BMC’s Peter Alexander will serve as CEO of the new entity, which will be based in Atlanta. From Stock, CEO Jeff Rea will remain on the board, Jim Major will continue as CFO, and Bryan Yeazel will become chief administrative officer and general counsel. BMC chief integration leader Tony Genito will oversee the integration of the two businesses.

Alexander and Rea will be joined on the combined company’s board by independent directors, including representatives from both firms’ current boards.

The deal was unanimously approved by the boards of both firms.

Stock operates 68 locations in 14 states, primarily in the South and West. BMC has 82 facilities in the West, as well as Texas and North Carolina.

Venerable WV Yard Liquidates

Big box competition is forcing the closure of 120-year-old Duncan Box & Lumber Co., Huntington, W.V. Inventory is currently being liquidated, and all equipment, fixtures and

the property itself are up for sale.

“We have 120 years of inventory we have to get rid of. This might take a while,” said co-owner Norman Taylor, who purchased the business from the founding Duncan family in 2012.

CNRG Acquires Lumberjack

Central Network Retail Group has acquired six-unit LumberJack Building Centers, Algonac, Mi. Founded in 1964, Lumberjack becomes CNRG’s thirteenth brand and first to reach into the Midwest. CNRG now operates 53 locations in 10 states.

NJ Chain Loses Main Office

A May 31 fire caused major damage to Peter Lumber Co.’s main office in Pleasantville, N.J. Impact on the adjacent store was limited to heat and smoke damage.

Although the office oversees operations for the entire chain, business continued uninterrupted at all seven stores.

The cause of the fire is under investigation.

Illinois Truss Plant Closing

ALCO White, Jacksonville, Il., is closing July 31 after more than 40 years of truss manufacturing.

Owner Wayne White, 66, is retiring and hopes to sell the ALCO White equipment and buildings together. If not, he will auction the machinery and sell the facility separately.

He purchased the facility, then Andrews Lumber Co., in 1985.

DEALER Briefs Keosauqua Lumber Co. , Keosauqua, Ia., has purchased the former Fairfield, Ia., site of FairfieldPackwood Lumber Co. Morrow Lumber Co., Morrow, Oh., is closing this summer after 104 years, with the retirement of owners Cork Judy Cowguill. A liquidation auction is set for July 8.

Zeeland Lumber & Supply

reopened its Wyoming, Mi., truss plant June 4—11 months after a tornado tore through the facility.

Tallahassee Lumber & Truss , Tallahassee, Fl., has purchased the assets of Johnson’s Lumber & Supply, Tallahassee.

Rhonda’s Riley Lumber Co., Riley, Ks., has filed to reorganize under Chapter 11 bankruptcy protection.

East Side Lumberyard Supply, Herrin, Il., purchased a larger

site to relocate to by early next year.

Wenner Do It Best Hardware, Cold Spring, Mn., is hoping to relocate to a site along the state highway.

ProBuild hosted a grand opening May 15 to show off its newly renovated showroom in Jamestown, N.D. Withers Inc. added a millwork showroom in Mount Pleasant, S.C. Ace Hardware , Armada, Mi., closed May 23, with the retirement of longtime owner Roxann Wood.

Ace Hardware is opening a new store this summer in Mills River, N.C. Rocky’s Ace Hardware held a grand reopening June 20 to show off its newly redesigned store in Dover, N.H. Bible Hardware & Builders Supply , Abilene, Tx., was named

2015 Small Business of the Year by the local Chamber of Commerce.

Anniversaries: Kruse Lumber, Rochester, Mn., 100th … B.D.

Polston & Son Builders Supply , Lafayette, Tn., 70th …

Marvin’s Building Materials & Home Centers, Leeds, Al., 70th.

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Building-Products.com

stole from him, and were there for over three hours loading each of the nearly-80-lb. bundles by hand into the trucks, according video surveillance footage that he hopes will help catch the thieves.

Police discovered someone had cut a chain securing a gate and used a vehicle to smash through it.

Fifteen pallets of shingles were reported missing, which amounted to about 600 bundles of the roofing material, totaling about $16,730 worth of shingles stolen. The thieves also committed about $3,000 in damage.

Big C Buys Michigan Yard

Big C Lumber, Granger, In., has acquired the 142-year-old Stevenson Lumber, Adrian, Mi., as its sixteenth location and first in eastern Michigan.

The chain will retain all 20 of Stevenson’s employees, its business plan, and—at least until the end of the year—the Stevenson name.

Gregg Pudell has transferred from Big C’s Edgerton, Oh., yard to become the new store manager.

Huttig Sells Roofing Branch

Huttig Building Products, St. Louis, Mo., sold Southwest Roofing Supply, Farmers Branch, Tx.—its one branch specializing in roof shingles— to Pacific Coast Supply, North Highlands, Ca. “The sale of the Southwest Roofing business completes our divestiture of non-strategic assets and fully positions Huttig to focus on our core competence of being the best wholesale distributor of value-add millwork and building products in the industry,” said Huttig president and CEO Jon Vrabely.

Marvin’s Grows in Georgia

Marvin’s Building Materials & Home Centers is building a new 30,000-sq. ft. store in Camilla, Ga., featuring an attached lawn-and-garden center and drive-thru lumberyard.

It expects a late October opening.

Based in Leeds, Al., Marvin’s operates 28 stores in Alabama, Georgia, Mississippi and Tennessee.

Fairway Buying Aluminum Railing Maker Carfaro

Fairway Building Products, Mount Joy, Pa., has agreed to purchase aluminum railing manufacturer Carfaro, Inc., Trenton, N.J. Joe Carfaro, who founded the business in 1994, will continue to oversee daily operations of the facility for Fairway. Upon close of the deal, he will also join Fairway’s senior management team and board of directors.

Thieves Ram Texas Yard

A group of culprits who stole two U-Haul trucks at a shop in New Braunfels, Tx., smashed them through the gates of Eberhard Lumber Co. and stole thousands of dollars in roofing shingles May 30.

Lumberyard owner Dennis Eberhard learned that about 10 men

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Building Products Digest

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SUPPLIER Briefs Interfor has doubled softwood lumber production at its Thomaston, Ga., sawmill.

Canfor’s Darlington, S.C., sawmill suffered damage to its office and control room in a May 25 fire.

Nguyen Custom Woodworking, Bronx, N.Y., filed for Chapter 11 bankruptcy protection.

Willis Dry Kilns , Washington Court House, Oh., liquidated inventory and equipment at a June 13 auction.

Robbins Manufacturing , North Tampa, Fl., suffered limited damage in a May 28 fire.

Weyerhaeuser Distribution, Pittsburgh, Pa., is now supplying James Hardie fiber cement siding to western Pennsylvania, western New York, West Virginia, and eastern Ohio.

Weyco in Houston, Tx., now stocks three sheathing products from Ox Engineered Products : ThermoPly, Styrofoam SIS, and ISO Red. Warrior Building Products, St. Louis, Mo.; Central Lumber Sales , Lincoln, Ne.; and Huttig Building Products’ Northeast DCs (Augusta, Me.; Selkirk, N.Y.; and Hooksett, N.H.) are now distributing ClipStone mortarless stone veneer.

Cabot Woodcare has expanded distribution of its exterior woodcare line to more than 2,000 Ace Hardware stores across the U.S. Patrick Industries, Elkhart, In., has completed the $20-million acquisition of fiberglass component manufacturer Structural Composites of Indiana, Ligonier, In. GAF has dropped plans to build a new asphalt shingle manufacturing facility in Moberly, Mo., due to sluggish market conditions and unanticipated increases in projected costs.

Ace Hardware Corp. will break ground this fall on a 400,000-sq. ft. addition to its Gansevoort, N.Y., distribution center, brining its total square footage to 1.2 million.

The co-op has also tapped Chicago-based O’Keefe Reinhard & Paul as its new advertising agency.

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MOVERS & Shakers Craig Wheatley has been promoted to director of market development for Parksite, Batavia, Il., managing DuPont Tyvek weatherization products. He replaces Walter Gatley, who is retiring after 26 years with the company.

Russ Hallenbeck has been promoted to CEO and a director of Tibbetts Lumber Co. and Cox Lumber, St. Petersburg, Fl., succeeding Juan Quesada, who has retired after 36 years with the company. Kyle Hooker was elected chairman of the board, and Dr. Michael Tibbetts is now vice chairman.

Georgia Harmon, ex-Weyerhaeuser, is now heading up the engineered wood department at Wholesale Wood Products, Dothan, Al. Andy Nuffer, ex-Thompson Mahogany Co., has joined Robinson Lumber Co., New Orleans, La., as VP of sales.

Fred Lund, ex-Safrit’s, is now executive VP for Parks Building Supply, Fayetteville, N.C. Hector Mendoza, ex-Von Tobel Lumber, is new to contractor sales at Tri-Creek Lumber & Hardware, Lowell, In. Drew Schasny has joined Metsä Wood USA as the new N.C.-based Southeast regional sales mgr.

David Ondich, ex-Regal Ideas, is a new territory mgr. for Bestway Lumber, Cortland, N.Y. Waymon Scruggs, ex-Graham Lumber, has been named general mgr. of Pro South, Booneville, Ms.

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Jack Brittain has been named branch mgr. of Carter Lumber, Norwalk, Oh. David Sotak, ex-Gordon Lumber, is new to outside sales in Port Clinton, Oh. Roberto Colondres is a new contractor sales rep at 84 Lumber Co., Winter Garden, Fl. New mgr. trainees include Matthew Hall, Huntington, W.V.; Steve Vignola, Middletown, N.Y.; Brian Lesch, Sennett, N.Y.; and Nicholas Malone, DeWitt, N.Y. Philip Keipp has resigned as CFO of Huttig Building Products, St. Louis, Mo., after six years.

Scott Lallathin is now operations mgr. at Lumbercraft, Canal Winchester, Oh. Kevin Morgan, ex-American Builders Supply, is new to Andersen Corp., as a sales & merchandising rep for the Orlando, Fl., area.

Doug Harden, ex-Atrium Cos., has been named product engineering mgr. for Deceuninck North America, Monroe, Oh. Heber Smith, ex-Champion Home Exteriors, has rejoined Lansing Building Products, as branch mgr. in Smyrna, Ga. Tom McGreevy is new to sales at Woodbrowser, Grantham, N.Y. David “Trip” Guthrie has rejoined MidSouth Building Supply, Richmond, Va., as a territory mgr.

Alex Moshenberg, ex-Henry Co., is a new commercial rep at Metro Building Solutions, N.Y., Flemington, N.J.

July 2015

Kimberly Rogers, ex-LP, is new to Inteplast Group, Livingston, N.J., as associate account mgr.

Kris Smith, ex-FireRock Products, is an architectural sales rep for Texas Building Products, Strawn, Tx. Rick Williams was appointed VPinformation technology for Ace Hardware Corp., Oak Brook, Il. George Judd, former CEO of BlueLinx, was elected to the board of Suwanee Lumber, Suwanee, Ga. Erin VanDoorenmaalen has joined the sales team at Allied Building Products, Arlington Heights, Il. Sam Smidansky has joined TECO’s Cottage Grove, Wi., corporate office technical staff. Tim Eylar is the new TECO plywood inspector working directly with the Omak Wood Products plywood mill in Omak, Wa. Mark Lipsius is now business development mgr.-specialty products at Chelsea Building Products, Oakmont, Pa. Kristina MacKenzie was appointed senior director of woodland owner marketing for the American Forest Foundation, Washington, D.C. Matthew Hunter has joined the American Wood Council, as Montgomery County, Pa.-based Northeast regional mgr. He succeeds Sam Francis, who is now national programs director.

Bob Taylor, president and CEO, Do it Best Corp., Fort Wayne, In., was honored with the annual Charles G. Berwind Lifetime Achievement Award, the top individual honor bestowed by the Big Brothers Big Sisters of America.

Building-Products.com

Bert Jones, Mid-States Wood Preservers, Simsboro, La., and Lenore Sullivan, Texas Women Ventures Capital Management, were elected to the board of Deltic Timber Corp., El Dorado, Ar. Ron Williams, owner of four-unit Central Ace Hardware, Houston, Tx., was presented the 2014 Ray A. Griffith Retail Leadership Award by Ace Hardware Corp.

Brian McCoy, president and CEO, McCoy’s Building Supply, San Marcos, Tx., received the Anita & Earl Maxwell Lifetime Achievement Award by the RecognizeGood foundation.

Jonathan Miller, Miller Hardware Co., Valdosta, Ga., was recognized as a 2015 Young Retailer of the Year by the North American Retail Hardware Association, along with

Matt Woods, Woods Hardware, Cincinnati, Oh.; Sam Ransdell, Burney Hardware, Aberdeen, N.C.; and David Cripe, Whitmore Ace Hardware, Wilmingon, Il. Burt Nurney is now handling outside sales to the Sesame Street territory for Mungus-Fungus Forest Products, Climax, Nv., report coowners Hugh Mungus and Freddy Fungus.

Mungus-Fungus Among Us This month marks the anniversay of Mungus-Fungus Forest Products, Climax, Nv.—a mythical company BPD has faithfully reported on since our first issue in 1982. Every month, our “Movers & Shakers” column ends with their latest personnel change, from fencing specialist Barb Dwyer to Rick Shaw and Sue Baroo in the transportation department.

Truth be told, Mungus-Fungus Forest Products was the brainchild of former publisher David Cutler, who recounts, “My eldest son first picked up the word ‘humongous’ surfing the California beaches. As it’s a funny word, it made us wonder if we could use it in a whimsical item in the ‘Movers & Shakers’ column, something readers might enjoy as a break from serious business.”

He added “Freddy Fungus” to the partnership to broaden the joke, to make sure readers knew it was all in fun. The company’s location in Climax, Nv., was borrowed from an old Dean Martin film.

Readers quickly related to the item. Some sent in their own suggestions, although many didn’t pass muster in a family magazine.

According to Cutler, “We thought everyone had caught on to the gag until one man at a Dallas convention approached in all seriousness, saying he had bet $50 Hugh Mungus was real. Judging by the look on his face, I tried to let him

down gently. He didn’t hit me, but he sure looked as if he would like to.”

But the fake company’s steady stream of exposure seems to have engendered numerous copycats. In recent years, there have been at least two other true-to-life Mungus Fungi. One was a vegan restaurant in the Battersea neighborhood of south London, England. The eatery closed a few years ago.

The other real-live Mungus Fungus is a Johannesburg, South Africa-based concert promoter, specializing in psychedelic music. “The vibrations are so immense that those from miles around are drawn to its unlimited power,” the company advertises.

“Mungus Fungus brings you a face full of psychedelic trance.”

Apparently, Hugh Mungus and Freddy Fungus are currently weighing their legal options. Although the imaginary partners concede that the imposter’s “mind-bending psytrance experiences” may not commonly be confused with its own substandard wood products, they do fear that continued inaction could embolden even more actual companies to trade on its good name.

Sure enough, the last several years have seen the launch of a new craft beer named Fungus Tea’Mungus and two mold remediation companies: Fungus-A-Mungus, based in the St. Louis area, and Nofungusamungus, in New Jersey.

MUNGUS-FUNGUS MIMICS? Are these real-life entities trading on the good name of our imaginary lumber company? Soundalikes include (clockwise from top right) a South African concert promoter, a T-shirt slogan, a children’s book, and the title of an episode of SpongeBob SquarePants.

Building-Products.com

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29

Fiber Cement Growth Slows

World demand for fiber cement is expected to climb nearly 5% annually over the next five years, a tick slower than the pace of the last five years, according to a new Freedonia study.

Growth will be tempered by a slowing in building construction, particularly non-residential, from 2014 to 2019. However, demand for fiber cement will benefit from rising market penetration in its many applications.

The material’s fastest growth is projected in moulding and trim, followed by siding. Roofing—the largest market for fiber cement products— will exhibit below-average growth, as countries such as Brazil and India move to concrete and clay products.

The fastest growing region for fiber cement demand is North America, led by the U.S. and Mexico. Both Western and Eastern Europe are forecast to post the slowest growth.

Versatex Ups Manufacturing Capacity, Sales Personnel

A fourth major expansion of Versatex Building Products’ flagship plant in Alquippa, Pa., is underway.

According to CEO John Pace, “When completed later this year, our

VERSATEX’S PITTSBURGH area PVC trim plant is just seven years old, but is already undergoing its fourth capital expansion.

45,000-sq. ft. addition will be able to house enough extrusion capacity to meet the needs of a growing housing market, while also more than doubling our current output.”

The company also launched a new recruitment drive to add more outside sales reps in high-population areas of the eastern half of the country, to help increase pull-through demand.

“Our goal is to support our high-

quality stocking dealer network by assisting them in the growth of their Versatex PVC trim sales with the help of our talented and highly trained sales specialists,” explained Rick Kapres, sales and marketing VP. “These market development specialists will work with builders, remodelers and architects to educate them in the ways that Versatex trim solutions will help them ‘trim smarter.’”

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(800) 456-7865

Thinner Panels

Windfall Lumber has redeveloped its Windfall Engineered Panel in a new lighter, more adaptable 1/4" panel size, with all the same visual attributes as the 3/4" product.

The thinner 48"-by-96" panel size allows for easier wall and ceiling applications, with the additional ability to wrap around fixtures or rounded surfaces.

 WINDFALLLUMBER.COM

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Building Products Digest

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The Perfect Drain

Elkay’s Perfect Drain eliminates the gap around the drain, reducing the chance that bacteria and grime can build up in and around the sink’s drain area and helping to make kitchen cleanup quick and easy.

It integrates seamlessly into the bottom of select Elkay top mount and undermount sinks.  ELKAY.COM (800) 779-0391

(360) 352-2250

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Knaack has introduced new and enhanced features for its Jobmaster Chest at the same cost and known performance. These new features, including a threesided easy grip and anti-slam chest lid, make safely accessing tools easier for contractors and remodelers.

The new three-sided easy grip lid allows workers to access the chest easily and from any angle. The anti-slam lid is gas strut supported, helping to regulate closing speed and ensuring user control when opening and closing the chest.

July 2015

Building-Products.com

Working for you.

Dave Lowry Plant Manager, 20 yrs.

Engineered Wood Products Real Wood Siding www.Roseburg.com 800.245.1115

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Lumber

Softwood Plywood |

Particleboard

French Sliding Doors with Soul

Energy Efficient, Classical Style

Essence Series French Sliding Door from Milgard Windows & Doors is both classy and practical, combining the durability of fiberglass with the warmth of natural, solid wood.

Customizable with 16 exterior colors, consumers can choose between pine or vertical grain Douglas fir wood on the interior. The door is designed to glide smoothly and comes with a premium, top-hung extruded screen to minimize jams or derailment.

Madeira collection of replacement windows and doors by Simonton Windows is an ideal choice for traditional, classic architectural styles.

Providing energy efficiency, the windows meet the most popular features requested by energy-conscious homeowners.

The collection includes ProSolar Low-E glass with Argon gas, and has a wide selection of styles, including a patio door and hinged patio door.

 MILGARD.COM

 SIMONTON.COM (800) 746-6686

(800) 645-4273

877-546-6808 www.quattrotimber.com • KD engineered porch & deck posts

Common problem: Solid-sawn green post has checked, split, and twisted while drying.

• Available in cedar, fir and spruce • Our manufacturing process virtually eliminates the problems that are common with solid-sawn posts, such as splitting, checking and twisting.

Solution: Kiln-dried engineered Quattro™Posts

• Quattro™Posts carry a certified structural rating, and their hollow core encourages a variety of lighting options.

Your next deck, porch, pergola, gazebo or arbor project deserves Quattro™Posts

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July 2015

Building-Products.com

Tougher Blades for Tougher Jobs

Simpson Strong-Tie StrongRod continuous rod tiedown systems feature new code-listed components and optimized rodrun assemblies.

Designed to prevent roof uplift, the system takes into account rod elongation, wood shrinkage, rod-run spacing, wood top-plate design and anchorage.

Spyder Tools’ rounded tip, double-edged blades are built with a longer-lasting, cobaltstrengthened version.

The 3x3 double-sided reciprocating saw blades allow users to plunge cut and make multi-directional cuts with ease, even through metal.

The double-edge blade allows for cuts without flipping the saw over. The rounded tip makes plunge cuts easier, eliminating the need for pilot holes.

 STRONGTIE.COM

 SPYDERPRODUCTS.COM

Rod Tiedowns

(800) 999-5099

(888) 471-2239

Woody Planters

Log-shaped Surreal Planters from Nature Innovations are light, portable and perfectly formed for planting.

They are durable, so they’ll stay realistic long after natural logs begin to deteriorate.

Molded in high density polyurethane using a patented molding process based on actual logs, the planters are hand painted to match the appearance of natural birch or white oak logs.

An integrated drain hole lets excess water run out when used outdoors but can be closed with a stopper for indoor use.

 NATUREINNOVATIONS.COM (877) 431-4433

Easier Fiber Cement Installation

Its 26inch length means just two clips are required per panel.

The system also increases windload resistance and provides a more robust rainscreen.

The Ultimate Clip by Nichiha USA is a new installation system for its fiber cement architectural wall panels. Consisting of a starter track and just a single model of clips, the clip is easy to specify and can be used for a broader range of applications.

 NICHIHA.COM (770) 805-9466

Your Eastern & Midwest Redwood Specialist

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7459 Franklin St., Forest Park, IL 60130

Fax: 708-771-7391 • Email: joe@chicagosuburbanlumber.com

Concrete Roofing with Southwest Style

Boral Roofing’s Gemstone Collection is a sustainable concrete roof tile collection, consisting of six palettes inspired by the earthy southwestern hues.

The roof was built for protection from inclement weather and energy efficiency.

All colors meet the California Title 24 compliance requirements and are listed by the Cool Roof Rating Council.

 BORALROOF.COM (800) 669-8453

www.chicagosuburbanlumber.com

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Building-Products.com

SPECIAL Focus APA–The Engineered Wood Association

Industry expects rising demand for EWP

S

IMILAR TO 2014, extremely harsh weather caused home building to stall in the eastern half of the U.S. during the first quarter of 2015.

However, with mortgage rates below 4%, new home sales rose 9% versus the fourth quarter of 2014, an indication that new home demand is improving.

Brighter employment prospects for young adults is leading them to head out on their own, adding to the strength in the demand for new apartment buildings. These forces point to the recovery in residential construction getting back on track in the sec-

ond half of this year.

“The biggest changes in the economic environment since a year ago are the strength of the U.S. dollar, the drop in oil and gasoline prices, and efforts by central bankers to stimulate their economies by driving down long-term interest rates,” said Joe Elling, market research director for APA. “This mix of events is likely to support lower interest rates in the U.S. than what was expected a year ago at this time. We are still in an unprecedented situation with respect to Federal Reserve policy though, and I remain concerned about the ability of

the Fed to return its balance sheet to a more normal state without a major disruption in financial markets here and abroad.”

Residential Market Forecasts

Critical to the strength in the demand for new housing is the ability of young adults to have the economic wherewithal to be on their own and, ultimately, to be able to own a home.

Despite very favorable affordability conditions from a monthly standpoint, tight lending standards and heavy student debt burdens are constricting that group’s home-buying power.

These conditions are expected to persist through the rest of the decade.

Consequently, as housing starts return to their anticipated 1.5 million level by 2018-2019, multifamily starts are anticipated to account for roughly 36% of the total.

Housing starts in Canada totaled just over 198,000 units in 2014.

Canada did not experience a housing bubble like the U.S did, but, similar to the States, multifamily unit structures are accounting for a greater share of new residential construction compared to 10 years ago. The forecast calls for starts in Canada to run in the 180,000-190,000 unit range, with multifamily units accounting for around 40% of the starts.

Non-Residential, Industrial, Imports & Exports OSB and plywood demand remains strong, with North American production likely to reach 32.6 billion sq. ft. this year.

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Nonresidential construction spending rose 3% in 2014 and is expected Building-Products.com

to gain momentum in 2015. Leading the growth through the rest of the decade is commercial building, following the increase in new housing development, and lodging, where occupancy rates are currently at alltime highs. State and local government budget restraints will tend to constrain the construction of education facilities.

Manufacturing production rose nearly 4% in the U.S. in 2014. The strength of the U.S. dollar and the disruption at West Coast ports in the first quarter of this year will slow growth in 2015 to the 2% to 3% range.

Looking forward, growth should average 3% yearly through 2019.

Due to rising domestic demand for North American plywood and the strength of the U.S. dollar, APA anticipates that plywood imports, notably from Chile, will increase through 2019. Imports will account for 5% of North American plywood consumption in 2015. OSB exports rose 1% in 2014. Meanwhile, export growth is expected to accelerate in 2016-17 as world economic growth picks up speed.

Wood Products Expectations

From 2015 to 2019, APA expects increasing demand for North American engineered wood products.

Structural panels are forecast to increase 19%, and other engineered wood products will see growth of 20% to 25%.

Driven by a 12% increase in hous-

Building-Products.com

ing starts in the U.S., demand for structural panels in residential construction in North America is expected to rise 10% in 2015, while growth in the other end-uses is projected to be 2.5%. North American production of OSB and plywood is predicted to hit 32.6 billion sq. ft. in 2015, an increase of nearly 8% over 2014.

Glulam production is on the rise, up 2% in 2014, and is projected to grow 8% this year, to 255 million bd. ft., and continue to increase steadily through 2019.

In 2015, I-joist production is anticipated to increase to 750 million linear ft. from 672 million linear ft. in 2014. With steady increases in hous-

July 2015

ing starts in the U.S., production is projected to reach 955 million linear ft. by 2019.

LVL demand will also benefit from sustained improvement in housing starts. LVL production in 2015 is forecast to reach 68.8 million cubic ft., from 63.9 million in 2014, and by 2019 output is projected to grow by 28% to 88 million cubic ft.

– Industry historical data and the 2015 market forecast are provided in APA’s “2015 Structural Panel & Engineered Wood Yearbook” (Form MKOE181). The report can be purchased for $250 at www.apawood.org.

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Building Products Digest

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39

SPECIAL Focus APA–The Engineered Wood Association

Treated glulams bring strength to big projects

G

are one of the building material industry’s most versatile and trusted products, with capabilities to span long distances and support heavy loads that make them a popular option for a range of framing applications. Those benefits also extend to the exterior, with pressure treated glulam options that allow for its use in projects ranging from residential decks to utility structures to bridges.

Because of these capabilities, treated glulam is an ideal choice for exterior applications where strength and span, along with insect and exposure resistance, are required.

That was the case for a coastal project recently completed in Crystal Beach, Tx., for the Lone Survivor Foundation. The retreat house is part of the Foundation’s mission to provide LULAM BEAMS

holistic healing for soldiers suffering from post-traumatic stress disorder (PTSD) and other illnesses associated with combat. Due to its location near the water, the house was built on piers and, in a fitting nod to the U.S. armed forces’ most recognizable symbol, it was designed in a pentagon shape.

To accommodate the unique shape and the point loads it created, engineers Chandra Franklin Womack, PE, and Rachel Riley, both of Aran and Franklin Engineering, opted to switch from traditional 2x dimension lumber to treated glulam beams from APAmember Anthony Forest Products Company. The treated glulam serves as the stringers around the perimeter, with a multitude of beams supporting the center of the house, left open to allow for parking below. The custom, thinner stringers were made with 5-

TO ACCOMMODATE the pentagon shape and pier construction of the Lone Survivor retreat house in Crystal Beach, Tx., engineers relied on preservative-treated glulam beams, which met the structural load requirements while also being capable of withstanding the exterior coastal elements.

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1/2-inch glulam beams resawn in half to a finished width of 2-7/16 inches.

All glulam beams in the structure were engineered and designed with Anthony’s software.

The long-span capabilities of the glulam helped the engineer reduce the number of piles and design the piers in a simple grid pattern, thereby reducing point loading and opening up more room under the house. The obtuse interior angles dictated by the pentagon shape and limitations on notching of beams would have necessitated the use of more pilings had they chosen dimension lumber.

Womack also used the glulam beams in certain areas of the floor system, including end walls and where a wall is supporting a beam, to take load off of the floor system to the stringer and the piling. On the second level, the glulam beams span the width of the living room to support the trusses while ensuring an open, flexible layout below.

Treated glulam also played a key role for the Pocono Solar Project, a 25-acre solar field at the Pocono Raceway in Pennsylvania. Treated glulam beams from APA-member Rosboro provide the crucial support structure for the 40,000 photovoltaic modules that are expected to produce 72 million kWh over the next 20 years. Using glulam beams ensured each piece was straight and true, with the preservative treatment ensuring the wood would stand up to the extreme Mid-Atlantic humidity, insects, and weather.

– To learn more about preservativetreated glulam, including recommended treatment types, fastener requirements, and use and handling, download “Preservative Treatment of Glued Laminated Timber” (Form S580) from www.apawood.org.

Building-Products.com

SPECIAL Focus APA–The Engineered Wood Association

Meeting fire protection requirements for I-joist floor systems

B

OTH THE 2012 and 2015 versions of the International Residential Code (IRC) include new provisions for fire protection of floor systems above basements. In areas where those provisions have been adopted, builders and installing dealers are altering their

typical construction practices.

The guidelines in Sections R501.3 of the 2012 IRC and R302.13 of the 2015 IRC require that lightweight “floor assemblies, not required elsewhere in [the] code to be fire-resistance rated, shall be provided with a

1/2-inch gypsum wallboard membrane, 5/8-inch wood structural panel membrane, or equivalent on the underside of the floor framing member.”

There are a few exceptions to the rule, including homes with an automatic sprinkler system, floor assem-

INSTALLING 1/2-inch gypsum board to I-joist webs is one of several methods builders and installing dealers can use to meet the IRC provisions.

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Building-Products.com

blies over a crawl space not intended for storage or fuel-fired appliances, 2x10 dimension lumber, or structural composite lumber and its equivalent.

Recognizing the concern the regulations create, APA and its members have been actively working to provide design recommendations for I-joist assemblies that comply with the codes.

Here are five methods that have been tested and approved to meet the requirements of R501.3 and R302.13.

In each of these methods, the I-joists must meet the requirements of ASTM D5055 and be installed and constructed in accordance with codes, product evaluation reports, and manufacturer’s instructions.

common, increasing the likelihood of a finished basement. Combining drywall on a basement ceiling, along with framing on the basement walls, provides builders with opportunities to up-sell a finished basement option.

The addition of drywall also increases the mass of the floor and acts as a damper to vibrations. Noise transmission is also reduced, increasing homeowner comfort.

1. 1/2-inch Gypsum Board Attachment Installers add a layer of 1/2-inch gypsum board or a 5/8-inch wood structural panel to the bottom of the flange.

There are several benefits to installing drywall to the underside of I-joists. Because basement insulation is now required by energy codes in most climate zones, framed basement exterior walls are becoming more

3. 1/2-inch Gypsum Board Attached to Entire I-joist Depth Installers add a layer of 1/2-inch gypsum board directly to both sides of the flange to cover the entire I-joist depth. This method can be used with a relatively small flange size (minimum 1-1/8 inches x 1-3/4 inches).

Building-Products.com

2. 1/2-inch Gypsum Board Attached to I-joist Web Only Installers add a layer of 1/2-inch gypsum board directly to both sides of the I-joist web. This method is associated with a relatively large flange size (minimum 1-1/2 inches x 2 inches).

4. Mineral Wool

Installers can add a 3-inch-thick layer of 2.5 lb./ft.3 nominal mineral

July 2015

wool insulation (R-15) to the top of the bottom flange between I-joists with a minimum flange size of 1-1/8 inches x 1-3/4 inches. In this method, the insulation is secured with insulation stay wires spaced no more than 24 inches apart and no more than 4 inches from ends of the batts.

5. Ceramic Fiber Blanket Insulation A 3/4-inch ceramic fiber blanket insulation, a proprietary product from a third party, may be installed at a minimum of 4 pcf nominal in compliance with ASTM C892 Type III or higher. This assembly can be used with I-joists with a minimum flange size of 1-1/2 inches x 2.3 inches. The fiber insulation is installed to the web and must be placed with no gaps and a snug fit inside the faces of the flanges. More information on this option and installation details can be found at apawood.org.

– For detailed instructions and drawings for the assemblies described here, refer to www.apawood.org and download “Fire Protection of Floors Constructed with Prefabricated Wood I-Joists for Compliance with the International Residential Code” (Form SR-405).

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Building Products Digest

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43

SPECIAL Focus APA–The Engineered Wood Association

Wall bracing made easy

W

provisions take up a whopping 30 pages of the International Residential Code (IRC).

Not surprising, considering that following wall bracing requirements is critical to a home’s structural integrity and its ability to resist racking forces and lateral loads.

Ensuring that house plans meet IRC wall-bracing requirements can become a time-consuming, cumbersome chore for builders. To streamline the process and ease any confusion around wall bracing, APA has recently launched several tools dealers can share with builder customers, including educational resources, simpler methods, and an online calculator.

ALL BRACING

Simplified Bracing Method

The 2012 IRC included a simplified wall bracing method (Section R602.12) that made great strides in easing builders’ and code officials’ understanding of this complicated section of code. APA expanded on that effort, enhancing the provisions to

increase their applicability to a larger percentage of home designs, while also making the process easier to understand.

To provide greater architectural latitude, APA’s simplified wall bracing method calls for continuously sheathed wood structural panel bracing with an increased, yet common, minimum sheathing thickness (7/16 inch) and a closer (4 inches o.c.) perimeter nailing schedule.

This system approach leverages the additional restraint provided by the mass and stiffness of a home’s second story and roof to realize a significant performance increase in the wall bracing on the first story—where the number of window and door openings are often maximized. This means that due to the strength increase from the additional nails and the slightly thicker sheathing, the existing plywood and OSB wall sheathing segments are often enough to satisfy the bracing requirements of the code, without making design changes or incorporat-

ing engineered solutions.

By modifying the IRC-simplified bracing method, APA increased its applicability to as much as 60% more house plans than before, including those with multiple window and door openings on both the front and rear elevations.

To review the full simplified bracing method and share with customers, download the System Report, Form SR-102 from www.apawood.org.

Wall Line Bracing Calculator

APA’s new online Wall Line Bracing Calculator provides an automated approach to determining the amount and placement of wall bracing for an individual house plan. In a simple four-step process, builders enter project parameters, add wall line details from existing plans, and then follow system prompts to identify appropriate segments of each braced wall line.

Once all wall line information and wall line segment details have been entered, the user can review and verify all information and then generate a report that can be provided to the local code jurisdiction’s plan check department. The report also provides a checklist showing the type of bracing at each location, nail patterns, and any required metal straps and hold-downs.

The easy-to-follow process automatically determines how much bracing is required, whether there is enough qualified bracing, and whether all the IRC placement rules have been met. Because it streamlines the calculations and verifies compliance with a complex section of the code, the calculator saves builders, engineers, and code officials valuable time.

Access the Wall Bracing Calculator at www.apawood.org/calculator.

Webinars & More

APA’S Wall Bracing Calculator helps determine wall bracing requirements with four simple steps.

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For additional education, dealers can steer builders toward APA’s fivepart Wall Bracing Webinar Series.

The webinars, presented in partnership with the American Institute of Building Design, cover a range of wall bracing topics, including wall bracing strategy, prescriptive wall bracing, and seismic and wind provisions. Builders can view the webinars at www.apawood.org/wall-bracing-webinars. Wall bracing recommendations are also detailed in a series of publications, available for free download from APA’s website.

Building-Products.com

SPECIAL Focus APA–The Engineered Wood Association

APA trademark guides use of, specs for wood structural panels

I

F YOU SELL OSB and plywood, chances are you’ve seen the ubiquitous APA gradestamp. In fact, APA-trademarked structural wood panel systems are among the most widely used engineered wood products. These time-tested panels are used in traditional wood-frame construction and in combination with other engineered wood products and systems, and they offer low in-place cost, versatility, and superior performance.

But just what do all those numbers and letters on the grade stamp represent? The information shown in the APA trademark provides a good guide to how the products should be applied in floor, wall, and roof construction. Considerations with APA Performance Rated Panels

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include span ratings, exposure durability, grades, and specialty panel definitions. It’s important for dealers to understand these indicators in order to help customers select the right product for their project’s needs.

Here are three typical trademarks along with line-item definitions.

1. Panel grade — The term “grade” may refer to panel grade or veneer grade. On plywood panels, panel grades are generally identified in terms of the veneer grade used on the face and back of the panel (e.g., A-B, B-C, etc.). In other cases, plywood or OSB panels are identified by a name suggesting the panel’s intended end use (e.g., APA Rated Sheathing, Rated Sturd-I-Floor, etc.).

2. Span Rating — Two numbers separated by a slash. The left-hand number is the maximum recommended center-to-center spacing for supports in inches when the panel is used for roof sheathing with long dimensions across supports. The right-hand number is the maximum center-tocenter spacing of supports in inches when the panel is used for subflooring with the long dimension across supports. The span rating on APA-rated Sturd-I-Floor and APA-rated siding panels appears as a single number.

The span ratings for APA-rated SturdI-Floor panels, like those for APArated sheathing, are based on application of the panel with the long dimenJuly 2015

sion or strength axis across three or more supports.

3. Tongue-and-groove — A system of jointing in which the rib or tongue of one member fits into the groove of another. In Sturd-I-Floor panels, tongue-and-groove edges eliminate the need for blocking beneath panel edges for support.

4. Bond Classification — Typical exposure ratings for APA wood structural panels are Exterior and Exposure 1. The classifications are based on the severity and duration of weather and moisture exposure the panels are designed to withstand, and the wood materials and adhesives used in their manufacture.

5. Mill thickness declaration — Designated thickness subject to tolerances specified in standard.

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was developed cooperatively by the plywood industry and U.S. Department of Commerce. Voluntary Product Standard PS 2-10, Performance Standard for WoodBased Structural Use Panels, establishes performance criteria for specific, designated construction uses.

8. APA’s Performance Rated Panel Standard — A standard applying to panels such as APA-rated sheathing, APA-rated Sturd-I-Floor, and APA-rated siding. Panels manufactured to meet APA performance standards must satisfy rigorous, exacting performance criteria for the intended applications.

6. Mill number — Manufacturing mill identification number.

7. Product Standard — An industry product manufacturing or performance specification. Voluntary Product Standard PS 1-09 for Construction and Industrial Plywood

Building-Products.com

9. Performance Category — A panel designation related to the panel thickness range that is linked to the nominal panel thickness designations used in the International Building Code (IBC) and the International Residential Code (IRC).

10. Siding face grade — Grade identification of siding face, based on number of repairs and appearance characteristics.

11. Species group number — Classified according to strength and

July 2015

stiffness under manufacturing standard PS 1 into Groups 1 through 5. Group 1 woods are the strongest, Group 2 second strongest, and so on.

12. HUD recognition — Recognition of wood-based APA Performance Rated Panels is contained in Use of Materials Bulletin UM-40.

13. Panel grade, Canadian standard — Some APA panels are manufactured to both U.S. and Canadian standards, and carry a dual mark, as shown in the Rated Sheathing mark above. Other panels may carry a single mark for either the U.S. or Canadian standard.

14. Panel mark — Rating and enduse designation, Canadian standard. In the Canadian span mark, the “R” signifies roofs and the “F” represents subfloors.

15. Canadian performance-rated panel standard — Lists the Canadian Standards Association (CSA) manufacturing standard for the panel.

16. Panel face orientation indicator — Indicates the direction of the strength axis of the panel.

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47

SPECIAL Focus APA–The Engineered Wood Association

APA member mills earn safety accolades

A

PA–T HE E NGINEERED Wood Association recently announced the winners of its 2014 Safety & Health Awards, a program that encourages and recognizes safety and operational excellence in the North American structural panel and engineered wood industry.

Anthony EACOM Inc. and LP won Safest Company Awards in their respective categories, while the coveted Innovation in Safety Award went to two winners: Weyerhaeuser of Grayling, Mi., for the Equipment-Based Innovation Award, and LP of Wilmington, N.C., for the Jeff Wagner Process-Based Innovation Award.

LP, a producer of engineered wood products in Canada, the U.S., and South America, earned top honors among companies with four or more mills, with a 2014 average Weighted Incident Rate (WIR) of 3.03. Anthony EACOM, which produces I-joists, won its award in the category for companies with three or fewer mills. The company posted a perfect 0.00 WIR for 2014.

The Grayling Weyerhaeuser mill’s original “Fire Hose Nozzle” equipment innovation and the Wilmington LP

Innovation Award Honors LP’s Wagner

APA’s Process-Based Innovation Award, one of two innovation awards in its Safety & Health Award program, has been named in honor of Jeff Wagner, executive VP-OSB for LP, who is retiring this summer after a distinguished career in the industry.

Wagner was instrumental in revitalizing the Safety Award program during his tenure as APA chairman from 2009 to 2012. He also worked with APA staff and members to create the Safety & Health Advisory Committee, which now meets regularly to share best practices and participate in educational sessions related to safety in the manufacturing environment.

“Jeff brought the vision and inspiration to make the APA safety program the best in the industry. His steadfast commitment to this important program has helped the entire industry make our manufacturing facilities and workplaces better and safer places for all employees,” said Ed Elias, APA president. “It’s fitting that we remember Jeff’s dedication to safety with the Jeff Wagner Jeff Wagner Process-Based Innovation Award.”

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mill’s “Pinch Point Safety” program took top honors out of 20 Innovation in Safety Award entries.

The idea for the “Fire Hose Nozzle” came from a site maintenance team member who is also a volunteer firefighter. With this innovation, site fire brigade members or fire department responders can set the desired spray pattern, put the unit in place, attach a hose, and douse a fire without putting responders in a high-risk situation.

“Pinch Point Safety,” the Wilmington LP site’s entry, is part of the mill’s mandatory safety training. The maintenance department designed a special teaching tool for machine-guarding training: a chain and sprocket covered by a guard and run with a cordless drill. To illustrate the hazard, a hot dog was placed in the pinch point of the running chain and sprocket to show what would happen if a finger was taken into a pinch point. The demonstration made a strong impression, as employees began recognizing hazards immediately afterward and continued to talk about the training for months.

Begun in 1982, the awards program honors the management teams and employees of companies and mills with the lowest Weighted Incident Rate (WIR) that is calculated using the number and severity of recordable incidents reported on the mill’s annual OSHA report.

Seventy-six APA-member facilities in the U.S., Canada, and abroad participated in the 2014 program. A total of 12 facilities representing seven APA member companies— Anthony EACOM, Boise Cascade, Louisiana-Pacific Canada, LP, Norbord, RoyOMartin, and Weyerhaeuser— earned awards in various competition categories. Some of the mills were multiple award winners.

In addition to Safest Company and Innovation awards, other categories include Safety Improvement, Annual Safety & Health Honor Roll, Three-Year Safety Award, and Incident Free Honor Society. Sixteen mills achieved a zero-incident rate for the year and were named to the Incident Free Honor Society. The annual honor roll, threeyear average, and safety improvement categories are divided into three divisions based on the type of product made.

While the awards are limited to APA members, data is collected from both member and non-member mills to provide a broad-based industry performance benchmark. A total of 76 mills reported data for 2014. The 2014 industry Weighted Incident Rate was 10.83.

The winning facilities and companies will be recognized and their safety accomplishments celebrated during the chairman’s dinner at APA’s annual meeting in October in Coeur d’Alene, Id. Building-Products.com

‌ serving the building industry for over 49 years

ASSOCIATION Update Lumberman’s Association of Texas & Louisiana is hosting “Tragedy in the Workplace. What Can We Do to Prevent It?,” a regional seminar and luncheon.

The seminar will offer three different dates in three locations: July 14 at McCoy’s, San Marcos, Tx.; July 15, Weyerhaeuser, Houston, Tx; and July 16, DW Distribution, De Soto, Tx. Led by LAT president Brian McCoy, attendees will get an insider’s look at strategies and procedures utilized by McCoy’s Building Supply’s own risk, safety and loss prevention teams.

Construction Suppliers Association is launching the first session of its Women in Lumber Leadership Collaborative in September. The program provides a unique opportunity for women in the industry to join female colleagues on a three-year journey to develop leadership skills.

CSA will wrap up a three-part webinar series on fraud July 9 and 23.

Indiana Lumber & Builders’ Supply Association will hold this year’s Sycamore Scramble golf tournament Aug. 6 at Dye’s Walk Country Club, Greenwood, In.

Building Material Suppliers Association has adopted the theme “Mission Possible” for its summer conference July 23-26 at Wyndham Oceanfront Resort, Virginia Beach, Va. Presentations will cover social media and advertising, installed sales, passing your business to the next generation, and economist Dr. Ed Seifried on economic vision and strategy.

New Hampshire Retail Lumber Association will host its annual board retreat July 16 at Atkinson Country Club, Atkinson, N.H. Lumber Dealers Association of Connecticut’s next board meeting will be Aug. 5 at Acadia Insurance, Rocky Hill, Ct. Central New York Retail Lumber Dealers Association is hosting its 12th annual clambake Aug. 20 at The Spinning Wheel, North Syracuse, N.Y. Western New York Lumber Dealers Association’s board of directors next meets Aug. 26 in Seneca Lake, N.Y.

Michigan Lumber & Building Materials Association is hosting its annual statewide golf outing Aug. 6 at Hawk Hollow Golf Course, Bath, Mi.

Mississippi Lumber Manufacturers Association is getting ready for its summer convention July 23-26 at Beau Rivage Resort, Biloxi, Ms.

Rhode Island Lumber & Building Materials Dealers Association’s annual golf outing and clambake will be July 8 at Green Valley Country Club, Portsmouth, R.I. After golfing, the group will meet at Kempenaar’s Clambake Club, Middletown, R.I.

Southeastern Lumber Manufacturers Association will be passing the gravel to the incoming SLMA chairman at its annual conference July 1518 at Waldorf Astoria, Orlando, Fl. During the conference, guests will be able to enjoy various networking

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opportunities with numerous receptions, a golf tournament, and a chocolate factory tour. An issues forum will take place for attendees to get up to date with the issues that impact the industry. EPA regulation and a legislative update will also be discussed.

Appalachian Hardwood Manufacturers Association’s summer conference is set for July 25-28 at Colonial Williamsburg, Williamsburg, Va. The program will cover business property insurance changes in 2015, a Virginia Tech researcher detailing the benefits of cross-laminated timbers to hardwood producers, and U.S. Fish & Wildlife officials explaining the impact the recent bat designation will have on timber harvests in the Appalachian Region.

American Lumber Standard Committee has scheduled its annual meeting for Aug. 14 in Halifax, N.S.

New Show Eyes Southeast

A new expo for builders and remodelers in the Southeast comes to Atlanta, Ga., next spring.

Show organizer E.J. Krause & Associates will launch the Builder Remodeler Expo Southeast March 8-9, 2016, at the Cobb Galleria Centre.

With building and remodeling at their highest points in six years and continued growth forecasted for the foreseeable future, E.J. Krause sees the Southeast’s residential construction market as in need of a regional tradeshow.

“Atlanta is the ideal market to develop BRE into a major platform to serve the Southeast’s residential building and remodeling industry,” said CEO Ned Krause.

Building-Products.com

IN Memoriam Harold E. Goodale, 92, cofounder of 11-unit Riverhead Building Supply, Riverhead, N.Y., died April 30.

He founded the company in 1948 with his uncle, Peter Ketcham, and his brother, Jesse Goodale II, who passed away six months ago.

Ronald Lee Welch, 64, former owner of Powell Lumber Co., Winona, Tx., died May 25 in Tyler, Tx. He owned and operated the wood treating business for over 20 years.

Richard Clyde “Dick” Chandler, 79, co-founder of CAT Lumber, Strong, Me., died June 8 in Strong.

He began his industry career in 1956 as a truck driver and mechanic with Starbird Lumber Co., Strong.

In 1972, he co-founded CAT as a mill, wholesale and retail operation.

He sold the business in 1994.

Jimmy Ray, 101, longtime manager of Benson Lumber Yard, Cleveland, Ok., died May 23.

He began his career in 1936 with Springer Lumber, Shawnee, Ok., before joining Bison Lumber, Shawnee, and finally Benson Lumber.

He retired in 1975.

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “cameraready” (advertiser sets type), $65 if we set type.

Send ad to Fax 714-486-2745 or david@ building-products.com. Checks payable to 526 Media Group. Deadline: 18th of previous month.

HELP WANTED

PRODUCTS FOR SALE

INSIDE SALES REPRESENTATIVE Hoover Treated Wood Products, Inc., the premier manufacturer of fire-retardant treated wood, is seeking an inside sales professional.

This position is located in Thomson, Ga. The ideal candidate is a motivated, self-starter with excellent communication and computer skills. A college degree with two years of inside sales and lumber or plywood trading experience is preferred. This position is responsible for maintaining excellent relationships with customers and vendors, fostering a commitment to the brand, cross-selling/up-selling, and participating in activities designed to improve customer and company performance and market visibility. To apply, please send your resume and references to hr@frtw.com.

BPD

Building Products Digest

Questions? Call (714) 486-2735.

SHAVER WOOD PRODUCTS Southern Yellow Pine Timber Production

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WANTED TO BUY

Leland Francis “Lee” Hemmingson, 90, longtime wholesale building material salesman, died May 1 in Le Mars, Ia. During World War II, he flew bombers for the U.S. Army Air Corps.

After the war, he joined his father’s construction business, before becoming an outside salesman for Lumberman’s Supply Co., Le Mars, and Holmes & Hudson Co., Le Mars.

He retired in 1986.

Avery John Angevine, 96, retired Maine sawmilling veteran, died June 1 in South Paris, Me. He entered the industry in the late 1930s with Davis Sawmill, Upton, Me. After serving with the U.S. Army in Germany during World War II, he became a millwright and mechanic at E.G. Blake, Bethel, Me. In 1964, he joined Andover Wood Products, Andover, Me., as assistant manager. In 1976, he was named mill manager for P.H. Chadbourne Co., Bethel. After retiring in 1980, he consulted throughout New England to the woodworking industry. He also ran his own portable sawmill, performing custom cutting from 1992 until 2009.

John D. Weidler, 81, former owner and president of Midwest Jobbers, St. Charles, Il., died May 3.

He joined his father’s company in 1954, taking the reins in 1985. He sold the company to Jim Krueger upon retiring at the end of 2004.

He spent eight years serving the Association of Millwork Distributors as treasurer.

Willie Matthew “Bill” Pless, 86, founder of Pless Lumber Co., Tullahoma, Tn., died May 29.

After serving in the U.S. Army in the early 1950s, he began his 45-year career in the hardwood lumber industry, working with Crouch Logging & Lumber, Charlotte, Tn., before starting his own business in 1977.

Jerome L. “Jerry” Littfin, 63, former owner of Littfin Hardware & Building Supply, Winsted, Mn., died May 28.

He worked at Littfin Lumber Co., Winsted, for many years, until operating his own business for five years.

Joseph Roderick Howard, 56, salesman with Kimbrell-Ruffer Lumber Co., Meridian, Ms., died June 12.

Earlier, he served as a sergeant in the U.S. Marine Corps.

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Building-Products.com

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

Rhode Island Lumber & Building Material Dealers Assn. – July 8, golf & clambake, Newport, R.I.; www.nrla.org.

Lumbermen’s Association of Texas & Louisiana – July 14, safety meetings, McCoy’s, San Marcos, Tx.; July 15, Weyerhaeuser, Houston, Tx.; July 16, DW Distribution, Desoto, Tx.; www.lat.org.

Eastern New York Lumber Dealers Assn. – July 15, clay shoot, Sunset Farms, Duanesburg, N.Y.; www.nrla.org.

Southeastern Lumber Manufacturer's Association – July 15-18, annual conference, Waldorf Astoria, Orlando, Fl.; www.slma.org.

New Hampshire Retail Lumber Assn. – July 16, board retreat, Atkinson Country Club, Atkinson, N.H.; www.nrla.org.

Central New York Retail Lumber Dealers Assn. – July 18, day at the races, Oswego Speedway, Oswego, N.Y.; www.nrla.org.

Southeast Building Conference – July 16-18, Orange County Convention Center, Orlando, Fl.; www.sebcshow.com.

Mid-Hudson Lumber Dealers Assn. – July 20, golf, Powelton Country Club, Newburgh, N.Y.; www.nrla.org.

Ohio Wood Industry Network – July 22-23, summer meeting, Marietta, Oh.; www.ohioforest.org.

Association of Woodworking & Furnishings Suppliers – July 2225, woodworking fair, Las Vegas Convention Center, Las Vegas, Nv.; (800) 946-2937; www.awfsfair.org.

Building Material Suppliers Association – July 23-26, summer conference, Wyndham Resort, Virginia Beach, Va.; (704) 3761503; www.southernbuilder.org.

Mississippi Lumber Manufacturers Association – July 23-26, mid-year meeting/trade show, Beau Rivage Resort, Biloxi, Ms.; www.mlmalumber.com.

Appalachian Hardwood Manufacturers Association – July 26-28, summer meeting, Colonial Williamsburg, Williamsburg, Va.; (336) 885-8315; www.appalachianwood.org.

Massachusetts Retail Lumber Dealers Assn. – Aug. 3, golf, Pinehills Golf Club, Plymouth, Ma.; www.nrla.org.

Lumber Dealers Assn. of Connecticut – Aug. 5, board meeting, Rocky Hill, Ct.; www.nrla.org.

Handy Hardware – Aug. 6-8, fall market, Henry B. Gonzalez Convention Center, San Antonio, Tx.; www.handyhardware.com.

HDW Inc. – Aug. 7-9, dealer market, Jackson Convention Center, Jackson, Ms.; (800) 256-8527; www.hdwinc.com.

New Jersey Building Material Dealers Assn. – Aug. 10, golf, Neshanic Valley Golf Club, Neshanic Station, N.J.; www.nrla.org.

Vermont Retail Lumber Dealers Assn. – Aug. 12, golf, Jay Peak Resort, Jay, Vt.; www.nrla.org.

Austin Home & Garden Show – Aug. 15-17, Austin Convention Center, Austin, Tx.; (877) 663-3186; www.showtechnology.com.

Northeastern Young Lumber Execs – Aug. 19, summer outing, Saratoga Race Course; Aug. 20, board meeting, Holiday Inn, Saratoga Springs, N.Y.; www.nrla.org.

Central New York Retail Lumber Dealers Assn. – Aug. 20, annual clam bake, Spinning Wheel, N. Syracuse, N.Y.; www.nrla.org.

Ace Hardware Corp. – Aug. 20-22, fall market, Chicago, Il.; (630) 990-7662; www.acehardware.com.

Volusia County Home & Garden Show – Aug. 22-24, Ocean Center, Daytona Beach, Fl.; www.showtechnology.com.

Western New York Lumber Dealers Assn. – Aug. 26, board meeting, Seneca Lake, N.Y.; www.nrla.org.

Orgill – Aug. 27-29, fall dealer market, Ernest N. Morial Convention Center, New Orleans, La.; (800) 347-2860; www.orgill.com.

Building-Products.com

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ADVERTISERS Index

FLASHBack

Allura [www.allurausa.com] ..........................................................37

90 Years Ago This Month This month, we head back to 1925, to celebrate the third anniversary of BPD’s sister publication, The Merchant Magazine. With the Great Depression still a few years off, home construction was booming, new lumberyards were popping up everywhere, and we were there to report it all in a jam-packed 160-page issue.

• The industry was advised to no longer refer to building materials with the then-common term “fire proof.” They could market products that passed ASTM testing as “fire resistive,” but they should also stress to homeowners that even use of these materials would not guarantee that the final structure itself was fire resistive—let alone fire safe or fireproof.

• In the days before frequent air travel, we regularly recounted the cross-country trips of prominent lumbermen. Los Angeles dealer Fred E. Golding prided himself on being able to drive himself from L.A. to Portland, Or., in an industry record 36 hours of actual driving time. (The distance is less than 1,000 miles.)

Golding is said to have suffered “much mental anguish” to learn in the pages of our magazine that Seattle lumberman H.G. Clark made the trip in 34 and a half hours (spread out over three days).

• Emanuel Fritz, assistant professor of forestry, University of California–Berkeley, penned an editorial, commending the millwork industry on its pursuit of college-trained workers. The article, on the importance of raising up a capable next generation of lumbermen, was one of several stories the professor contributed over his 80-year career. He died in 1988 at age 102.

Anthony Forest Products [www.anthonyforest.com] ...................8 APA-The Engineered Wood Association [www.apawood.org] ..43 Arch Wood Protection [www.wolmanizedwood.com].................25 AZEK [www.azek.com].....................................................................5 Boise Cascade [www.bcewp.com]................................................47 BW Creative Railings Systems [www.bwcreativerailings.com] .30 Chicago Suburban Lumber [chicagosurburbanlumber.com] ....36 CMPC [www.selex.cl] .....................................................................31 Coastal Plywood [www.coastalplywood.com].............................39 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................53 DeckWise [www.deckwise.com] ...................................................13 Do it Best Corp. [www. www.independentsdoitbest.com]............3 Everwood Treatment Co. [www.everwoodtreatment.com].........23 Fortress Wood Products [www.fortresswood.com]............Cover I Great Southern Wood Preserving [www.yellawood.com] ............7 International Beams [www.internationalbeams.com] .................45 Jordan Lumber [www.jordanlumber.com] ...................................24 Kop-Coat [www.kop-coat.com] .....................................................27 Matthews Marking Systems [www.matthewsmarking.com].......28 MCL Engineered Wood Products [www.mcl-ewp.com] ..............15 Metsa Wood USA [www.metsawood.us] ......................................50 Mid-State Lumber [www.midstatelumber.com] .................Cover III Mississippi Laminators..................................................................49 North American Wholesale Lumber Assn. [www.nawla.org] .....51 Quality Borate Co. [www.qualityborate.com] ..............................19 Roseburg Forest Products [www.roseburg.com] .......................33 RoyOMartin [www.royomartin.com] .............................................41 Simpson Strong-Tie [www.strongtie.com]...................................35 Speedy Spacer [www.speedyspacer.com] ..................................26 Sunbelt Rack [www.sunbelt-rack.com] ..............................Cover II Swanson Group Sales Co. [www.swansongroupinc.com].........21

90 YEARS AGO: Founded in 1910 to produce a better wallboard, Upson Co. of Lockport, N.Y., quickly grew into the world’s largest wallboard producer, with additional plants in New Orleans, Elkhart, California, and Canada. The operations were sold to Domtar in 1984.

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Synergy Pacific/Quattro [www.quattrotimber.com] ....................34 Tri-State Lumber [www.homanindustries.com]...........................53 Viance [www.treatedwood.com].........................................Cover IV Building-Products.com

BPD

151 Kalmus Dr. Ste. D200 Costa Mesa, CA 92626-5959

Building Products Digest

Change Service Requested

ALL TREATED WOOD IS

NOT

THE SAME

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