Building Products Digest - May 2011

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THE INSIDE TRACK TO DECKING SALES NAWLA SPECIAL ISSUE

Building Products Digest

MAY 2011

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

BPD

May 2011

Volume 30 Number 3

Building Products Digest

Special Features

In Every Issue

8 MARGIN BUILDERS

6 TOTALLY RANDOM

FOUR WAYS TO CAPTURE A LARGER SLICE OF THE DECKING MARKET

14 COMPETITIVE INTELLIGENCE

10 FIRST PERSON DO YOUR HOMEWORK: PUT COMPOSITE DECK INNOVATIONS TO THE TEST

12 FEATURE STORY

16 OLSEN ON SALES 18 GREEN RETAILING 26 MOVERS & SHAKERS

NORSE TREATER INTRODUCES ALCOHOLINFUSED SOUTHERN PINE DECKING

28 IN MEMORIAM

29 SPECIAL FOCUS: NAWLA 2011 24-PAGE NORTH AMERICAN WHOLESALE LUMBER ASSOCIATION SPECIAL SECTION ON • NEW PROGRAMS • INDUSTRY FORECAST • CREDIT OUTLOOK • SAFE SHIPPING • GROOMING TALENT • TRADERS MARKET • SALES PRESENTATIONS • BAD ADVICE

56 PHOTO RECAP: LAT

50 KAHLE ON SALES 53 NEW PRODUCTS 60 CLASSIFIED MARKETPLACE 61 DATE BOOK 62 IDEA FILE

TEXAS DEALERS’ 125TH ANNUAL EXPO

62 ADVERTISERS INDEX

59 PHOTO RECAP: SFPA SOUTHERN PRODUCERS’ SPRING MEETING

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BREAKING INDUSTRY NEWS & INDUSTRY PHOTO DOWNLOADS BUILDING-PRODUCTS.COM (FOLLOW LINK FOR PHOTOS)

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Building Products Digest May 2011

BPD: DIGITAL VERSION THE LATEST ISSUE CAN NOW BE VIEWED AT BUILDING-PRODUCTS.COM Building-Products.com

TOTALLY Random By Alan Oakes

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What’s workplace drama costing you? AST NIGHT,

I heard someone on television say that there is something in the air that just does not feel right or good. It is almost like we are waiting for something bad to happen. Are we really all in such a lousy mood? Have you noticed how stressed and burned out people seem to be? Not only do we have to contend with customers who have shorter fuses than in the past and who go off the handle at the slightest thing, but internally where people issues seem to be on the increase, the level of bickering and in-fighting also seems on the increase. It is clear that with the housing market as it has been for three or more years now— company cutbacks, stagnant pay, staff reductions including total divisional and company closedowns—that there is a sense of fear that creates an atmosphere of distrust in many organizations. Those lucky to be left in a job are covering the work of lost colleagues, mistakes happen, tension builds, the finger pointing increases and people start passing the buck. As pressure and tensions increase, so does the drama in the workplace. People are just worried. Of course, it does not take any of the above to create a hostile working place. There are people who can create drama any time of the day. There always seems to be a queen or king bee who is planning unrest, hiding something, not talking this week, creating issues for other employees, or working deviously and politically to create division. They are the ones who we all seem to tip-toe around so that they can manage their kingdom. I have seen drama created by bosses who humiliate their staff in front of others. I have worked for companies where change was fought tooth and nail by entrenched staffers pitting one side against the other. And don’t you just love those meetings where everything is taken personally, where you can cut the air with a knife, where there are clear power struggles marked by complaining and whining. And yet management does not do anything about it, as often the manager is just too scared to. Now for sure, there will always be some drama—it is part and parcel of the workplace environment, and it is just as likely to happen at the management level as at the staff level. But when drama takes the place of work, energy and focus are lost. Productivity takes a swallow dive, customers get lost, and it just feels downright uncomfortable to work in that environment. I have worked in companies where power and political struggles were the norm and it was just mentally draining. It is estimated that drama costs the U.S. economy over $3 billion a year in lost productivity. But when you look at it on a personal level, it could be costing you a pay increase, a promotion, and, more importantly, your health, happiness and well being. While unpleasant to deal with, not only do you have to recognize the drama, but you have to either take yourself out of it, or jump in with two feet and try to solve the issue. Workplace conflict resolution is not easy. I have had to deal with it many times and it should not be personal. There is normally a clear black or white. Even with shades of gray, there are ways to handle it! The important point is to remain fair and non— political. But leaving the issue to fester only fuels the gossip mongers, increases the level of complaints internally (and maybe externally), creates low morale, and opens up power struggles. More importantly, it takes precious time and resources away from doing what everyone needs to be doing—focusing on growing the business. I have also learned to get rid of those who are permanently in the middle of it—manager or employee. We have too much too worry about these days. None of us should walk on egg shells every work day. Our companies deserve better, and so do we. I recently heard a saying that Europeans work to live, while Americans live to work. If we do in fact live to work, let’s make those days fun again and enjoy the major part of our day. Alan Oakes, Publisher ajoakes@aol.com

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Building Products Digest May 2011

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Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Carla Waldemar, James Olsen, Jay Tompt Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

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Building-Products.com

MARGIN Builders By Brent Gwatney, MoistureShield

4 ways to capture more of the decking market

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Emphasize Performance

Although pricing still plays a strong role in building material choice, performance attributes often trump price. From a survey of builders, global management firm LEK Consulting found that “despite price pressure, durability remains the most important product selection factor as contractors want to prevent costly customer callbacks and avoid added or unexpected installation time driven by inferior products.” In the case of decking, wood-plastic composites provide a good opportunity for dealers to showcase durability. Manufacturers anticipate that composites will last two to three times longer than wood decking, depending on the product. Underscoring this, some composites are available with limited warranties, up to 20 years to lifetime. A strong warranty provides the builder with an effective selling point to homeowners, giving them

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Building Products Digest May 2011

Photos by MoistureShield

ATCHING THE HOUSING market’s slow recovery is like rooting for your favorite underdog sports team: the constant hope for success is punctuated by brief triumphs that are soon dashed by the latest setback. How much more can dealers and builders take? Fortunately, one area that’s looking up is decking. The U.S. decking products market will grow 2.7% per year through 2014 and be valued at $6.2 billion, according to the Freedonia Group. Composites will drive approximately 70% of the growth in lineal feet. As builders begin looking for the most profitable decking options, there are several actions dealers can take to help boost sales and revenues:

COMPOSITE DECKING with fully encapsulated wood fibers can withstand direct ground and water contact, plus resist resist moisture, insects, and decay.

peace of mind that their deck investment will last for many years. In addition, some composite decking manufacturers use production processes that totally encapsulate the wood fibers in plastic. Such materials resist moisture and insect damage, and builders also can install them with direct ground or water contact. These performance features provide a way to sell higher-value materials to builders who have traditionally used wood decking. And, given the breadth of composite options available, there isn’t necessarily a large jump in price for greater product durability and longevity. Composite decking manufacturers provide a range of product lines, from entry-level materi-

als to higher-end decking with specialty features such as additional color choices or enhanced stain and fade resistance. This variety enables a dealer’s sales staff to best target a composite product to each builder’s needs.

Bundle Value-Added Components

Dealers know that offering combination deals on various materials can be a good way to boost sales. It’s the “would you like fries with that?” approach, but taken to a higher level of sophistication. When selling deck boards, a natural extension to the package is offering the builder complementary railing components. Homeowners increasingBuilding-Products.com

ly value railing, which helps drive overall growth in decking material demand. Freedonia’s deck report points out that “many homeowners will install additional railings and other accessories to create separate areas for dining and entertaining, or to add safety features to prevent falls by small children or older adults.” It’s all part of the greater popularity of outdoor living spaces. As with wood, composite decking is available with matching posts, post caps, rails and balusters. In some instances, dealers may also wish to package outdoor lighting or sound systems with the decking and railing—especially for railing components that have hidden grooves or channels for wiring. Fasteners provide another potential bundling opportunity. Builders may not perceive a strong benefit if the packaged item is just deck screws, but offering them a deal on a hidden fastening system can provide a cost-effective way for them to give their customers a deck with a higher-end finish.

Showcase Design Flexibility

Since many homeowners are interested in decks that reflect their unique tastes, dealers can help builders achieve this by offering a wide selection of decking colors and patterns. Composites are available in a multitude of colors: wood hues such as cedar, walnut, tiger wood and mahogany, as well as grays, earth tones, and other tints. Builders can readily mix and match colors of deck boards and/or railing components to create interesting patterns. Composites also come in a variety of shallow- and deepembossed patterns to simulate the look of wood grain. This feature can be an important selling point to builders or homeowners who value the appearance of traditional wood decking. Builders can use curved deck, stair, rail, and trim ele-

What to Expect in Decking

U.S. demand for decking will revive from the 0.6% annual drop in 2004 to 2009 to increase 2.7% per year and reach 3.5 billion lineal ft.—worth $6.2 billion—in 2014, forecast the Freedonia Group. Wood will continue to dominate the market, accounting for 77% of the market by 2014 compared to 86% in 2009, but demand will increase just 0.5% per year, from 2.604 billion lineal ft. in 2009 to 2.67 billion in 2014. According to Freedonia, demand for wood decking will “be restrained by competition from composite and plastic decking materials. Interest in tropical hardwoods, such as ipe, will provide growth opportunities in the residential building and non-building construction markets.” Composite decking, which saw demand fall 1.4% annually from 2004 through 2009 to 349 million ft., will grow 12.9% per year through 2014, reaching 640 million ft. Meanwhile, plastic decking, which saw demand fall 2.1% per year to total 73 million lineal ft. in 2009, is predicted to jump 13.9% annually over the next five years, to 140 million lineal ft. by 2014. Decking’s fate appears contingent on a modest recovery in the overall housing market. The residential market accounted for 59% of all decking demand in 2009, although the percentage normally would be much higher had it not been for the recession in home building. Nonresidential market demand will increase 2.4% annually through 2014.

Building-Products.com

DECK BUILDERS can customize designs with stairs, trim and railings.

ments to further expand the designs they offer their customers. While wood can be challenging to bend depending on the species and the nature of the application, with some composites, builders can heat the material and readily form a variety of shapes.

Highlight Green Attributes

In some markets—and frequently with higher-end homes—green features are important to homeowners. Although environmental attributes alone usually do not drive product buying decisions, they can be an important differentiator. One of the primary reasons demand is growing for composite decking is its green features. However, not all composites are equal in this regard. While some include little or no recycled materials, brands are available with high total recycled content. This can include both pre- and post-consumer content for wood fiber and plastic. There are two key selling points dealers can make for high-recycled content composite decking: (1) it diverts large quantities of waste from landfills, and (2) it can help builders earn green project ratings under popular programs like LEED for Homes. In addition, your decking materials manufacturer may offer incentives or dealer marketing tools. Among these are rebate programs, customer leads and referrals, technical support and training, and special offers. Contact them for information on how they can help support your business. – Brent Gwatney is vice president of sales and marketing for composite decking producer MoistureShield, Springdale, Ar. Reach him at bgwatney@aert.cc or (866) 729-2378. May 2011 Building Products Digest

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FIRST Person By Shane O’Neill, Compositology LLC

Put composite deck innovations to the test

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VER THE LAST FEW YEARS,

there has been a flurry of activity within the composite decking market. Many of the products prevalent in the market 15 years ago are not even available any more or, at the very least, are called something completely different. In some ways, this is a good thing. There were a lot of growing pains in the development of composite decking, and several manufacturers paid the price for using customers as field testers. But has everyone learned their lesson from the past? How do the practices of your composite decking vendors affect you, the dealers and distributors? Let’s face it: people like new things. If you look at anything Apple makes, you will see the power of marketing “new.” However, in the arena of building products selling new can be a two-sided coin. On one side, there’s the selling power of new, which everyone loves. During the honeymoon phase, all of the things your sales reps told you are true. There’s no reason to question what they’re saying. Product is selling, inventory is moving, and you are making a nice margin on a value-added product. The flip side of that coin, however, is not so good. After an innovative product has been out for a year or two, issues may arise. The magnitude and scale of these issues often are completely out of your control, and resolution hinges on how well your vendors did their homework.

Do Your Homework

“Today, ASTM test standards exist for composite decking, such as D7031, but the industry has yet to standardize specific test methods for long-term performance. As the industry continues to evolve, standards will likely become more prevalent. But, for now, it’s up to you to do the homework to understand the makeup of the products you are offering your customers. “WPC and PVC have their pros and cons. Regardless of which you choose, don’t be afraid to ask your suppliers what polymer, colorant, additive and process technologies are being used to increase fade, scratch and moisture resistance. These can make all of the difference in long-term product durability—and ultimately your reputation and the number of warranty claims you receive.” – Brian Guhde, extrusion technology development manager for Americhem

Just like all manufacturers, composite decking vendors balance the costs of bringing their product to market with the value that product provides. During a product’s life cycle, most companies work to improve the its shortcomings. These refinements may be nearly invisible at the consumer level (updated additive systems to increase longterm durability, improved color packages to increase resistance to fading), but address concerns observed in the field. Depending on the nature of the refinement, it may or may not be applied to their current product line. The time and cost of recertification is usually prohibitive on a current product, but can be justified with the launch of a new product. Therefore, most refinements are bundled with other visible improvements (such as new color palettes, different texture and grain patterns, or improved surface treatments) and the marketed new product is now the “innovation.” In a perfect world, manufacturers will constantly search for ways to improve their product to create the best possible product. In reality, most improvements are more self-serving. If a manufacturer can notably improve its product (i.e., attributes that can be easily disseminated by the consumer), the marketing department will wrap that improvement up in new product names and lines and leverage it into a price increase. With the launch of an “innovative” product, the manufacturer will now have to refill the distribution pipeline with inventory. The producer will do 70%+ of its sales in a year just “filling the pipe,” with only a portion of those sales actually being installed the first year. And, dealers have old product is more than likely now obsolete and a new product with potentially limited real-world exposure. When composite decking first became mainstream, it often went by the name “wood-plastic composites” or WPCs. This was because nearly everyone had the same thing—waste sawdust was mixed with some sort of waste plastic (typically milk jugs or grocery bags)—and what came out was this blue-gray plank that was sort of flat, sort of square, and was the “innovation” to replace treated wood decking. The sales reps told you about its resistance to moisture and rot, absence of splinters or toxic chemicals, that you “don’t have to clean it,” that it was dimensionally stable and would last forever. It even had a warranty. After this first generation of composites was out in the field for a few years, you began to hear about “issues.” There were varying degrees of color loss, food stains, easily scratched and marred surfaces, mold, fungus, expansion and contraction issues due to temperature, planks twisting and swelling from moisture, and even cases where boards

decayed and turned to dust. Affected manufacturers took their licks, dealt with warranty claims and class action lawsuits, and ultimately, the products were greatly improved. Those that didn’t do so just walked away. This left a lot of dealers and distributors in a tough spot: you have a personal relationship with your community. You aren’t selling a product inside a vacuum. You need to maintain a great relationship with the contractors and homeowners you know. They keep you in business and allow you to pay the bills. When a manufacturer has a product failure that leaves you in the lurch, any profit you may have had in that sale is lost in the cost of maintaining that customer relationship the best you can. Four years ago, the hot innovation in alternative decking was cellular PVC. It was the solution to all the past problems with WPCs. The sales reps explained to you how this innovative product wouldn’t fade, stain, scratch or mar, and was impervious to water and truly ultra-low maintenance— basically, the perfect product. Well, after selling a few million linear feet of cellular PVC decking to homeowners and contractors, some people had problems: staining from bug spray and suntan lotion, reactions with rubber and other plastics causing discoloration, permanent material shrinkage, and surface chalking. Again, the manufacturers went to work developing refinements. Now, the hot trend is capstock products: an additive and pigment rich resin coating on the outside of a composite board. Most of the major composite decking producers have introduced a capstock line, promising: “Exceptional resistance to fading and water damage” “Practically impossible to stain” “Requires very little upkeep” “Practically impervious to the elements and everyday accidents” “Engineered to resist fading, scratches and stains” “Resists everything but stares” Sound familiar? What can you do to find out if history will repeat itself again? Expect more from the manufacturers and sales reps. When they walk in your door to sell you the newest innovation, there should be a higher expectation than doughnuts or a free lunch. Be ready to ask them some simple questions to decide if the newest innovation is what you want to sell: “What testing have you done?” How are they able to claim the product performs as their literature suggests? Do they have any sort of data or does everything look like a marketing campaign, with checkmarks and catch phrases? If there are no numbers to explain their results, ask them to provide the numbers. Do they really know the product beyond the literature? Remember, this is the person you are going to call on if there is a problem in the future.

“If there is testing, who did the testing?” Was the testing done by a third-party (someone outside the company) or someone inside? Internal testing is a valuable tool for a company while developing a product, but at some point, there must be validation of the results by an outside source. It helps to keep things honest, and adds merit to the internal work done by the company. Some of this is validated during the code testing process. Building-Products.com

However, the code is focused only on the mechanical performance of the decking. It evaluates a minimum performance level for a product and establishes a joist span and stair tread rating. There is no validation of long-term durability, surface performance, or resistance to the elements. “How does your competition perform in comparison?” If they don’t know what the competition does, how do they know they have the best product?

“What field testing or accelerated tests has this been through?” It takes time for issues to show up in the real world. It’s why field testing or accelerated tests are vital to draw out issues before you have to deal with them at your customer’s home. After you meet the various decking reps and compile a short list of products you feel comfortable with carrying, how do you decide which one is the right one? Evaluate the market and bring in your best contractors and homeowners to gauge their response and interest. Then consider a technical evaluation. Not only does it provide a second opinion on products you’re considering, but it also provides a unique marketing tool to persuade customers to buy from you. The cost of the evaluation can be marginal compared with the capital investment in a new line. If a manufacturer is serious about wanting your business, see if they will cover or offset the cost as part of the deal. “You have the newest innovation, now what about the old stuff? While the manufacturer makes their money as each truck leaves the factory, you don’t make yours until the last boards are sold. If you still have partial bundles from last season, have you made your profit yet? What is the manufacturer doing for you? Are they requiring a minimal commitment of $250,000+ and forcing you to carry all product colors? Is there a buyback of unused product that will be obsolete the minute the new stuff shows up? Vendor-managed inventory program? Are they working to be a partner with you into the future, or are they just looking to move some units in the short haul? It’s important to look at this process as an investment. Composite decking is a value-added product, not a commodity. Invest in products and companies that have instilled confidence in what they do. Companies should know their product and have scientific data to back up their claims. They should provide confident, competent personnel who can address questions and concerns when they arise from your customers. The selling of value-added lines also requires your staff to be familiar with the products, explain their strengths and weaknesses, and provide installation tips and techniques to your contractors. Before new products arrive, develop the means to either effectively sell your entire inventory or negotiate a vendor-based option. Ultimately, you are the one who will be left holding the bag, so do the research to protect yourself and your relationship with your customers.

– Shane O’Neill is founder and chief technology officer of Compositology LLC, a marketing and technical support consulting company for the composite materials industry. Reach him at (763) 567-0097 or shane@compositology.com. May 2011 Building Products Digest

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FEATURE Story Kebony SYP Decking

Norse treater christens alcohol-infused decking

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NEW WOOD TREATING process that uses a type of alcohol instead of copper-based chemicals has arrived. “Kebonization” is the result of research conducted by Dr. Marc Schneider, University of New Brunswick, Canada, in the 1980s and 1990s. Softwoods are injected with furfuryl alcohol, a byproduct of corn and sugar production, and then subjected to heat and pressure. The result is harder, more stable, and more resistant to water and weather damage than untreated wood. “This technology provides a global eco-solution to the major environmental challenge of rainforest deforestation,” says c.e.o. Christian Jebsen. “It can withstand harsh climates, and is ideal for both indoor and outdoor use.” Norwegian investors who wanted

to develop and commercialize the technology got involved in 1997. A pilot production plant opened in Norway in 2003, and began supplying European projects—decking and piers, cladding and roofing, window frames, plus indoor flooring and furniture— the next year. In January 2009, a larger, full-scale plant was opened in Skien, Norway. The decking currently sold in the U.S. is southern yellow pine domestically grown but shipped by container to Norway for processing. The company hopes to eventually open a plant in the U.S. Until then, Douglas Murray and his staff handle sales and distribution from an office and storage facility in Roanoke, Va. Although most of the treated SYP is shipped back to the U.S., some is

KEBONY, used in Europe as an alternative to pressure treated wood and tropical hardwoods, is now being specified in the U.S.

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Building Products Digest May 2011

marketed as a premium product in Europe—along with similarly treated ash, beech, maple, and Scots pine. According to Murray, the U.S. office has focused on large, municipal projects, mainly on the East Coast, where officials are faced with major renovations of aging boardwalks. He says that Kebony’s environmentally friendly profile boosts local support for the costly renovations. He also believes that the large projects will attract the attention of residential customers. “Private customers know that major projects go through a tough selection process with professionals,” he says. “When the economy picks up, people can get the great new decking they’ve seen in public places.” Officials in Bethany Beach, De., selected Kebony SYP for its aging boardwalk after two years of fieldtesting and “nothing but positive feedback,” according to Brett Warner, director of public works. Phase II of the renovations—including deck boards and railings—was recently approved, for an estimated cost of $200,000. The final phase is slated for next year. Kebony SYP has also been installed on a 15-ft. section of the old boardwalk in Ocean City, Md “It’s holding up really well,” says Michael Datillo, city business administrator. “It’s not splintering and it looks great. We’re considering a larger test area.” Murray says that Kebony has been specified for 22 major new installations that will soon start construction. One example is Hunter’s Point South in New York City, where an old industrial area is being transformed into an urban living complex. At this location, Kebony will be used for a new boardwalk, a dog park, and other amenities. Building-Products.com

DECKING BOARDS await treatment at Kebony’s full-scale production facility in Skien, Norway.

Looking ahead, Murray says that the company is “seeking to develop reseller relationships that can grow with the demand. “ He has already forged one such alliance, with Nature Neutral, a green building dealer based in Charlottesville, Va. “We became aware of Kebony after it was specified for a local project, by an architect who was looking for something classier than plastic or composite, but didn’t want to use tropical hardwoods,” says Kristopher Jensen, who handles sales at Nature Neutral. The company supplied Kebony SYP for a recently completed 10’x16’ residential deck, and expects to supply the new product for two or three more

deck projects this summer. “It’s a good looking, natural product that holds up well,” says Jensen. “A great addition to our inventory of green building products.” Another reseller is Mid Atlantic Building Supply, Ocean View, De., which shipped 3,000 sq. ft. of Kebony SYP for walkways and decking at a residential remodel in North Bethany Beach, De., just blocks from the renovated boardwalk. “He changed to Kebony after seeing how well it held up after one year on the boardwalk,” explains Brendan Welch, a broker at Mid Atlantic. “The architect had originally specified ipe for this project, but was interested in a greener alternative.”

BOARDWALK renovation in Bethany Beach, De., used Kebony SYP after extensive, onsite testing. Building-Products.com

May 2011 Building Products Digest

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COMPETITIVE Intelligence By Carla Waldemar

Old customers = new Facebook friends

NEW ENGLAND dealer Moynihan Lumber recently celebrated the fifteenth anniversary of its youngest yard, in Plaistow, N.H.

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MOYNIHAN LUMBER, headquartered in North Reading, Ma., recently celebrated the fifteenth anniversary of its third location in Plaistow, N.H., president Michael Moynihan failed to understand what all the hoopla was about. His granddaughter, Shannon, was more than a little excited, however, because she’d helped open the store as her first job in the family business after coming home from college. But she recalls Granddad humphing, “Fifteen years? That’s nothing!” Well, not for someone “still working like a horse at 78,” allows Shannon—a gent who launched the company many decades earlier, in 1959. But, hey, he was a newbie back then, too. He’s lived with the stories of his own uncle delivering lumber with a horse and wagon in the Twenties. Since then, Moynihan Lumber’s original three shacks atop four acres have multiplied to eight buildings on a 13-acre site; several more of each in the Beverly, Ma., location launched in1986, and the 20 acres anchoring that 15-year-old Plaistow store, which also serves the outfit’s distribution/ storage center. HEN

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Building Products Digest May 2011

Today the company boasts 135 employees—many of whom, it seems, answer to the name of Moynihan. Talk about family-owned! Michael and his two brothers each head one of the three locations. Shannon’s cousin Chris serves as general manager at North Reading. Cousin Katie runs the kitchen design department (and just returned from a buying show in Paris). Cousin Curt acts as lumber buyer (which took him last year to an expo in Disneyland). A couple of the young tads in the rising fourth generation have been corralled into YouTube commercials, reports Shannon, who serves dual roles as aunt-cum-marketing manager. The extended Moynihan family, also known as employees, remain strongly loyal because of the family atmosphere. “My father thinks they’re all his children,” says Shannon with a verbal eye-roll. And that includes Aunt Rita, an employee of 35 years, who’s not even an actual aunt. Still, she’s so beloved that she’s had a city park named after her. Part of the charm is the management style Shannon and her dad endorse. (“We’re so alike they call me

‘Little George,’” she laughs.) Both agree that there’s no place for micromanagement: “It’s your job. It’s your department. You run it any way you want to, as long as it makes money.” And nobody gets an unearned leg up. “I started here, right after college, answering phones, and worked my way up. Here, you pick your area, work hard at it, and you’ll rise to the top.” For instance, cousin Curt started in with a high-school work program, and today, as lumber buyer, he’s off to Disneyland. “Embrace change” is Shannon’s mantra, and one that’s part of her gene pool. Father George was the brother who pushed for opening the Plaistow store, across the state line in New Hampshire. The first two locations, close to Boston, anchored well-established communities, while Plaistow still offers “a lot of open land. People will head there,” as he foresaw, “and we’ll be ready to go after their business”—especially true after the downturn slowed new building elsewhere. These days, as the recession ties consumers to their present homes, as is happening everywhere in the nation, it’s remodeling that’s keeping the Building-Products.com

company alive. And Moynihan’s ahead of the curve in that niche, too. Its showroom, launched in 2005 to showcase 20plus kitchen vignettes, has just undergone a complete facelift of its own. It now features a walk-through home environment, from porch to deck, for which Cousin Chris re-evaluated every single product (at the same time, he modernized the company’s technological systems to enable all inventory to be accessed and scanned via computers). Chris also led the company’s laborious efforts to become FSC-certified and has included a whole showroom wall of green products for consumers to investigate. “Green is not big here in New England at the moment, but it’s the wave of the future,” Shannon insists. “And we’ll be positioned in the lead.” She’s also ecstatic about the uplift in the Beverly store, designed with Ace Hardware’s input. “I’m a Macy’s and Target shopper, myself’—name me a woman who isn’t— “and now it looks like a Target hardware display, all beautifully organized and labeled,” she effuses. In another move that seems to target Target’s credo, Moynihan has morphed to offer one-stop shopping, supplying everything from lumber, roofing, insulation and hardware to paint and power tools. It now offers a line of specialty millwork, having snagged a top employee. (“When Jeffers Millwork closed, we got ’im!” Shannon crows.) The company also provides door and window installation, along with kitchen, bath and deck design assistance. “Remodeling will be the big thing going forward,” she predicts. Even during the recession, people want a new look. We’re doing a whole lot of bathrooms.” To indicate that thrust and promote the increased scope of the company’s offerings, she’s advocating a name change from Moynihan Lumber to Moynihan Home Improvement. But so far, Little George has not been able to convince George to act on that suggestion. Although the yards can save a bundle by purchasing jointly, and by participating in an ENAP plan along with their competitors, Moynihan’s three sites all boast different demographics. North Reading, the oldest and company headquarters, historically served large tract builders with its strong outside sales staff. Beverly, which started out as a dot on the farming landscape (“We sometimes got paid in vegetables”) has developed into a more upscale community where foot traffic prevails. (“We’re like Cheers for our customers—a hangout for remodelers and jobbers.”) And Plaistow, in New Hampshire, serves a mix of both these days. “When I started out there,” Shannon recalls,” I was thrilled by the energy and momentum of establishing a brand in a new location and seeing it succeed in a few, short years. It proves our business formula was the right one.” (That formula, by the way, was written by her forbears over 50 years ago: “Quality backed by a desire to please.”) That maxim still pleases the pros, who remain Moynihan’s mainstays. Service by knowledgeable, experienced staff, sure. Free delivery—terrific, too. Training events to keep abreast of new products—also nice. But what it comes down to (you’ve heard this before) is relationships. Moynihan’s contractor clientele represent the third generation, doing business with the third generation of Moynihans. All of the above are exactly what keeps Shannon on board here. “Number one, my family means more to me than anything,” she professes, “and, number two, from the managers to the yard guys, everyone’s dedicated to the Building-Products.com

store. They’d give you the shirt off their back if you needed it. And that comes from the top down—the message that we help people any way we can.” Thus, those generations of Moynihans make it a point of pride to give back to the community. They’ve donated lumber to the Boy Scouts for 35 years. They’ve sponsored the annual Cancer Run for Life (and populate its board). They’re behind the North Shore Cancer Walk. And the Jimmy Fund is Michael Sr.’s brainchild—a golf tournament that brought in $30,000 for cancer causes last year, and, since its inception, well over $400,000. Clearly, Moynihan’s place as a community pillar is a constant. But its players aren’t mired in the past. “Embrace change,” Shannon preaches with evangelistic fervor. And she’s quick to act on her mantra. As marketing manager, the young woman has spearheaded the company’s efforts to convey its message through electronic—read, social— media, taking over where its traditional print and airwave ads leave off. Since 2007 she’s sent out a monthly enewsletter which has received “great response,” driven in part by monthly Win It e-contests and promotions, such as ticket giveaways, which require in-person pick-up. Which drives store traffic. Which is wonderful. “I’m a big, big fan of social media,” she says, and, to her delight, so are Moynihan’s contractors, a group not notable for occupying the cutting edge. She’s set up a special Facebook page for them, backed by a clever Like It Forward campaign in which Moynihan donates $1 to local food shelves for every new contractor who “friends” the company—well over 100 so far. The e-tool also encourages them to ask questions, such as installation how-tos, and receive immediate response. They also send her leads. To her surprise and immense pleasure, these pros also forward unsolicited testimonials praising the company’s products and services—“pure gold, an unexpected bonus,” which Shannon posts on the company’s website. (The website also contains a detailed how-to section that helps pros and d-i-yers alike attack their projects.) “Mobile marketing is the next big thing,” this maven is convinced. “I’m a big believer. It keeps us well ahead of our competitors.” Even better, it’s absolutely free—all the more vital in a year that’s seen her marketing budget crunched by one-third. And let’s not forget the free talent, a.k.a. young cousins, cavorting on the company’s YouTube videos. Doing more with less has become entrenched throughout the organization during these challenging times. Yes, that’s the g.m. shoveling the parking lot, and manning the sales counter, with nary a “not in my job description” whine. “Everyone has had to pitch in,” Shannon testifies. “We’re surviving due, also, to a deliberately conservative credit and pricing policy, especially where our competitors are concerned. Some of them are almost giving away products in order to attract business, but I believe that will backfire. It isn’t easy to turn away business, but if it isn’t profitable business in the long run, it doesn’t do anyone any good.” Carla Waldemar cwaldemar@comcast.net

May 2011 Building Products Digest

15

OLSEN On Sales By James Olsen

Bid busting solutions

3. How to Present the Bid: Make It an Event

M

ANY SELLERS FEEL VICTIMIZED by, and thus fall victim to, The Bid Process. “I can’t really sell my guy* because he buys off a list. The lowest bidder gets the order. I try to work with him, but he tells me to quote my best price the first time and if I’ve got the low number, I get the order.” (“I got the order! Hooray! I’m the dumbest!”) This is a victim mentality. And if it’s true, which it’s not, we can have a $10-an-hour employee do our job.

Number 1 Bid Busting Solution

Prospect for accounts who will buy from us as promotional partners, not people who want us to be their Bid-B’s. But if we must bid…

2. De-commoditizing the Bid/RFQ/Inquiry

Ask about desired outcome. What exactly is the customer trying to accomplish? If we know the desired end result, we submit a bid—a solution—that is better customized (not commoditized) to our customer’s needs and, most importantly, to the talents of our company. We rewrite the bid customized to our strengths vis-à-vis our customer’s desired outcome. Work the bid collector. This is neither my style nor my favorite, but it works and most master sellers have an arrow or two of this strategy in their quiver. Being nice to the person who collects the bids—whether they are the buyer or not—pays dividends. Asking for guidance and friendly conversation will give clues to how the bids are placed. Often information considered unfair is given. Work the Bid. This is a heavy part of strategy number one. When given a bid, we must query every aspect— price, delivery, availability, penalties for late shipment. That small piece of information and many like it will be discovered going through the bid thoroughly and completely. Everything is important, but identify the most important aspect and prioritize the remainder.

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Building Products Digest May 2011

The set up conversation: “John, I will have the bid ready tomorrow. Will Pete and Mike be able to make the presentation? If not, let’s set it for a time when all the decision makers can be present.” If all the decision makers are not present, we are submitting a bid, not selling. Find out when. “When will the order be placed?” Be the last bidder. “Are all the bids in?” is a bid-buster question. If the answer is yes, find out as much as possible about them. If the answer is no, why are we waiting? Present a final number without specifications. If we are doing highly detailed work or there is some advantage in others seeing our bid, this is a bold and effective move. Customer: “Wow, that’s a great price, but where are the details?” Bold Salesperson: “We stand behind our work 100%. Our designers are the best in the business. I will give you the details when you give me the order.” This approach can be flipped by giving the specs but leaving out the price—until all decision makers are present, for example—or modified by leaving out one key element in an otherwise immaculate bid. This approach can be delivered in bolder and subtler ways, adjusting it to our style and that of our customer. Submit an inexpensive bid with a strict time limit. Especially in ongoing business-to-business sales relationships, this is a great bid buster. Submitting a great price with a time limit encourages our customers to work with us. If they come back after the deadline, we must hold firm, even if we lose the business, or this will not work. Speak assumptively. We must speak as if we are presenting a solution that will be implemented. (Not a bid!) Know the details. Especially when presenting a customized solution, if we fumble on details, the customer will return immediately to the standard bid. Ask for the order. Speak assumptively throughout the presentation and be prepared to ask for the order many times. Letting the customer walk (consider, think over, discuss on their own) or any other option lowers our closing percentage drastically. * Our guy is someone who buys from us like a partner. Refer to number one bid buster solution above. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Building-Products.com

GREEN Retailing By Jay Tompt

Adam Smith and green capitalism

I

N THIS COLUMN, we’ve talked quite a lot about the implications of green building and the wider sustainability movement for LBM dealers and distributors. For the most part, the conversation has focused on evolving market opportunities, merchandising appropriate products, and creating operational eco-efficiencies. But are the pursuits of “green” market opportunities and cost-saving efficiencies sufficient to make a business “green” or its leaders green capitalists? Devotees of Adam Smith might answer “yes,” as long such activity maximises profit. It’s the result that counts and if “the invisible hand” does its job, then what’s best for society will emerge naturally through the activities of masses of economic decision makers, each pursuing their own self interest. Of course, the economic world Smith inhabited was quite different from today’s global corporate economy. But in at least one respect, the reality for a merchant capitalist 200 years ago was very nearly the same as for many dealers in today’s LBM supply chain. In Smith’s day, the merchant was intimately woven into the fabric of local society. “The invisible hand” operated within an ethical framework that assumed the interests of a wide range of stakeholders within the community. So, was Adam Smith the first “green” economist? No. But notions of green capitalism are becoming just as mainstream, being taught in leading business schools and adopted by leading corporations and green building companies. For locally focused members of the LBM supply chain, these new articulations of capitalism may already seem familiar. But delving deeper and adopting new approaches to business leadership may hold long term strategic value. For many, the term “triple bottom line” has become the

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Building Products Digest May 2011

short-hand definition of what a green business is all about. It was coined by John Elkington in the 1990s as a way of joining the concepts of “sustainable development” and “corporate social responsibility.” The idea is that if businesses tracked their performance in the realms of social and environmental impacts, as well as profits, they might then be accounting for their full cost of doing business. And in so doing, they would seek to improve where performance lagged, ameliorating social and environmental problems along the way. Though this sort of formal accounting may be problematic at the moment, there are advantages for LBM dealers who adopt TBL principles, or a similar approach. Perhaps the best place to start is with a book that’s required reading for every Green MBA. Natural Capitalism by Paul Hawken (co-founder of Smith & Hawken), Amory Lovins, and L. Hunter Lovins, identifies the four principles of “capitalism as if living systems mattered”: radical resource productivity, biomimicry, service and flow economy, investing in natural capital. In short, by reducing resource use, eliminating waste, rethinking the provision of goods in terms of services, and by treating sources of natural capital (such as local wetlands that naturally purify water, for example) as real sources of wealth to be restored, nurtured and grown, businesses can lower costs, maximise profit, and solve many of the world’s problems. This alternative vision of capitalism, and others like it, offers a useful strategic framework, especially in light of economic and social challenges we’re sure to face in coming decades. This kind of thinking has already helped companies such as Interface (carpet industry) and Steelcase (office furniture), lead their respective industries. In any case, adopting a “natural capitalist” framework will lead a business toward the best green and most economic practices as a matter of course. For dealers seeking to win in the green building arena, becoming a green capitalist seems like an important and natural next step. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com

Building-Products.com

DEALER Briefs

Willson & Son Lumber Co., Plainview, Tx., is liquidating after nearly 100 years, with the coming retirement of 78-year-old owner David Willson.

Cason Cos. acquired Louis Williams & Sons, Hendersonville,

N.C., from third-generation owner Danny Williams and relocated the 83year-old hardware store to a 9,000-sq. ft. building next to its Cason Builder Supply operation in East Flat Rock, N.C.

Midway Hardware & Lumber, Joplin, Mo., has closed after nearly 48 years, with the retirement of owners Larry and Roger Brown.

Brownsboro Hardware & Paint, Louisville, Ky., added a second location, in the former home of

Vance’s True Value Hardware,

Prospect, Ky.

Havelock Building Supply, Havelock, N.C., is liquidating after 27 years. Owner John Jackson will retain the property for a new, undetermined use.

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Building Products Digest May 2011

Anthony Enhancing Sawmill

Anthony Forest Products Co., El Dorado, Ar., will significantly upgrade its sawmill in Urbana, Ar. The plan includes adding more primary sawmill equipment and dry kilns and building a new high-speed planer mill system. Aubra Anthony, president and c.e.o., said the “project will improve the facility’s operating, energy and environmental efficiencies, and also provide an increased volume of quality lumber products for our customers.”

Arch Licenses Osmoseʼs Micronizing Technology

Arch Treatment Technologies, Atlanta, Ga., has been granted a worldwide license to produce micronized wood preservatives in accordance with patents owned by Osmose, resolving a patent infringement suit between the companies. Both manufacturers will continue supplying the market with their current preservatives.

Investment Group Buys ABS

Door/window distributor American Builders Supply, Sanford, Fl., has been acquired by private equity firm Blue Wolf Capital Partners LLC, New

York, N.Y. Investors included ABS’s management team, led by c.e.o. Chad Barton, and Bob Dello Russo, c.e.o., Del-Air, Sanford, who joins the ABS board.

Suitor to Mix Activant, Epicor

Activant Solutions, Livermore, Ca., has agreed to be purchased by private equity firm Apax Partners and merged with another Apax acquistion target, Epicor Software Corp., Irvine, Ca. The acquisition of Activant is conditioned upon the concurrent closing of Epicor, both expected by the end of the second quarter. The combined company will retain the Epicor name.

Osmose Acquires Copper Compound Supplier

Osmose, Griffin, Ga., has acquired the production assets of chemical producer Peninsula Copper Industries, Hubbell, Mi., a copper compound supplier to Osmose for over 25 years. “The acquisition of PCI is another important step in our integration into the manufacture of copper compounds that are essential to the production of our MicroPro, NatureWood ACQ, and CCA preservative products,” said Osmose president Paul Goydan.

Building-Products.com

DEALER Briefs

Trails West Ace Hardware, Gardner, Ks., is reopening this month under new ownership. Prior owner Rex Cummings will stay on as manager, joined by his son Cameron. Intown Ace Hardware, Decatur, Ga., has expanded

its garden center.

Parkway Hardware, Minneapolis, Mn., has closed after nearly 10 years of business.

Menards opened new megastores April 5 in Bemidji, Mn. (Matt McKinney, general mgr.) and March 28 in Marshall, Mn. (John Miller, general mgr.). Lowe’s opened a second, 103,000-sq. ft. store April 14 in

Frederick, Md. (Teresa Yeargan, store mgr.).

Habitat for Humanity opens a 10,644-sq. ft. ReStore discount LBM outlet May 6 in Topeka, Ks. (Andrew

Faunce, mgr.). Other new ReStores celebrated grand openings early last month in Waynesville, N.C.; W. Roxbury and Worcester, Ma., and Dickson, Tn. (Robert Scarlet, mgr.). Another is expected later this year in Iowa City, Ia. The Knoxville, Tn., ReStore moved to larger, 23,000-sq. ft. building.

ProBuild received FSC chain-of-custody certification for 59 of its lumberyards.

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Building Products Digest May 2011

Ohio Dealer Switches Gears at 100

Mohler Lumber is celebrating 100 years of business in Canton, Oh., with a new look and focus. “Mohler’s started as a lumber supply business with a hardware store for convenience,” said Jed Rohrer, who coowns the fourth-generation company with his sister, Jennifer Rohrer Hamilton. “With the slowdown in the housing market, we have adjusted the business plan to be a hardware store with lumber for convenience.” The renovation began with the main building, with a new facade, wider aisles, improved lighting, and new inventory. “We have plans to update the remaining buildings one at a time,” said Rohrer. “We will be adding a lawn and garden center to the main store next.”

Producer Pulls Plug on CuNap

Merichem Co., Houston, Tx., has declined to re-register copper napthenate with the EPA and will discontinue production of CuNap-8. Its chemicals division will instead focus on naphthenic acid. CuNap is used to treat utility poles, railroad crossties, bridge timbers, and other industrial wood products. Elaina Jackson, Pacific Wood Preserving Cos., expects most plants and customers to switch to pentachlorophenol. “Penta and CuNap have the same AWPA listings, and many customers and utilities specify them interchangeably,” she said. “The major difference is that CuNap is a ‘general use’ preservative and penta is a ‘restricted use’ preservative. Penta does have the overwhelming percentage of the market share for pole production—the primary use of both CuNap and penta, so I don’t see that the change will impact the market much.”

Building-Products.com

A REVOLUTION IN WOOD “This year we want to order Kebony Southern Yellow Pine again, for the rest of the boardwalk.” Brett Warner, Director, Public Works Bethany Beach, Delaware

Until recently, beautiful wood types were traditionally associated with rain forest wood. Kebony has changed all that. Now there is a new type of wood available. Choose Kebony Southern Yellow Pine – a revolutionary new organic modification of wood. As aesthetic, strong and durable as rain forest wood, yet 100 % environmentally friendly.

inspirit.no / tusj.no

Call Kebony Inc. on tel: 888 914 9995 or send an e-mail to: revolution@kebony.us.com. www.kebony.us.com

Kebony Inc. 4419 Pheasant Ridge Office Park, Floor 302, Roanoke, Virginia 24014, Phone 540-904 6781

SUPPLIER Briefs

Myers Forest Products, Salisbury, N.C., has filed

Chapter 11 bankruptcy.

Boise Building Material Distribution applied for a tax abatement to help add 100,000 sq. ft. to its Wayne, Mi., DC.

Doll Lumber, Southington, Oh., lost a 6,000-sq. ft. warehouse and two front-loaders in an April 11 fire. Hedrick Brothers Lumber Co., Lexington, N.C., will

rebuild its sawmill after a March 24 fire.

Feldman Wood Products, Garden City, N.Y., now offers California Redwood Co.’s Classic Heart decking.

G-P Completing Carolina OSB Mill

Georgia-Pacific has resumed construction at the nearly complete OSB facility in Clarendon, S.C., that it acquired from Grant Forest Products. The $400-million purchase from Grant also included operating OSB mills in Allendale, S.C., and Englehart, Ont. “We expect it will take most of this year to complete construction on the plant,” said Mark Luetters, GP’s president-wood products. “We are currently planning to start the plant in December 2011. Having now operated an identical plant at Allendale, we believe we will be able to quickly and efficiently begin producing OSB.” GP will spend $30 million to complete the facility.

Engineered Lumber Partners, Loxley, Al., is now distributing LiteSteel beams in the Gulf Coast.

Sherwood Lumber Corp., Islandia, N.Y., and subBloch Lumber , Chicago, Il., are installing WoodPro’s InSight ERP software at their 50+ locations. sidiary

Building Products Inc., Council Bluffs, Ia., now distributes Curtner Lumber’s Ozark Natural Paneling.

EcoPrime , Augusta, Ga., will produce and distribute ECOB Red Shield Protected Lumber.

K&R Wholesale, Camdenton, Mo., is stocking GAF’s DuraLife Natural Grain Collection and RailWays universal railings. Seven D Wholesale, Altoona, Pa., and Coastal Forest Products, Bedford, N.H., offer the full DuraLife Collection.

THE WINNER of a new deck contest sponsored by Arch Treatment Technologies, Atlanta, Ga., will enjoy a five-day trip to attend this year’s DeckExpo, plus a one-year membership in the North American Deck & Railing Association.

Siberian Larch Decking All Natural, All Weather, For All Time... SiberWood decking offers:

• Natural durability with no chemicals or other treatments • Beautiful, natural golden brown appearance • Accepts stain well • Large heartwood content ensures maximum durability and uniform color • Low maintenance • High manufacturing standards for consistent quality • High density increases stability • Packaging allows for easy handling • Environmentally responsible from FSC-certified forests Due to its reputation for longevity in European construction, Siberian larch is referred to as “The Tree of Eternity.” Many existing structures are hundreds of years old, including the ancient city of Venice, which is supported by thousands of larch piles. Relatively unknown in the U.S. until recently, this product is now available under the SiberWood brand. Features include high dimensional stability, low installation cost, low maintenance, quality of manufacturing, and attractive appearance. However, the one feature that really sets it apart from other species is its natural resistance to decay, stemming from its high density, large heartwood content, hardness, and high resin and extractive content. Alternative decking products were developed due to a lack of availability and quality of wood products. The demand is rising for long-lasting, low maintenance, chemical free, real wood surfaces and SiberWood is raising the standards for the decking industry.

Building Materials Alliance, Peachtree City, GA (770)631-8673 • www.siberwood.com 24

Building Products Digest May 2011

Building-Products.com

MOVERS & Shakers Steve McNamee has joined Huber Engineered Woods, Charlotte, N.C., as general mgr.-AdvanTech flooring and sheathing. Michael Corsino, ex-Armstrong, has joined the sales team at Boston Cedar, Holbrook, Ma., as a Typar weather protection and Surround underlayment specialist. Johnathan Richards is new to Hoover Treated Wood Products, Thomson, Ga., as marketing designer and administrator. Paula Presenkowski has been named v.p.-marketing for the facilities maintenance division of HD Supply, Atlanta, Ga. Michael Willen has retired after 35 years in the business, the last 18 in sales at Sherwood Lumber, Islandia, N.Y. Bob Stanek, ex-Brockway Smith, is now in sales at Russin Lumber, Montgomery, N.Y., focusing on central and western Massachusetts. Paul Devine, ex-Simpson Lumber, and Jeff Blanton, ex-Universal Forest Products, are new to sales at KyKenKee Inc., Vance, Al.

Scott Berchiatti, ex-Pella Windows & Doors, is the new division mgr. at Capital, Houston, Tx. Mark Niewerth has been appointed branch general mgr. for Epperson Cedar Creek, Statesville, N.C., following Epperson’s acquisition by Cedar Creek. Blase Grady, ex-Building Materials Consultants, is now chief operating officer for Magbee Contractors Supply, Winder, Ga. Henry Linares, ex-Perez Trading, is now director of Latin American sales for International Forest Products, Foxborough, Ma. Mark Fikse is new to Stock Building Supply, Raleigh, N.C., as division president and general mgr. for the Southeast region, overseeing Georgia and the Carolinas. Kellie Radzik was promoted to corporate controller at Snavely Forest Products, Pittsburgh, Pa. John Lewis is now director of information technology; Mark Thorn, acting general mgr., Houston, Tx., division; Regina Holder, office mgr., Houston; Colleen Arnold,

Ainsworth. Surround yourself with engineered quality.

office mgr., Westminster, Md., and Cliff DeSpain, Typar market development mgr., international division, Liberty, N.C. Lee Shaw, ex-Craftsman Restoration, has joined ProVia, Sugarcreek, Oh., as director of sales for residential doors & windows. Andy Iamaio has been promoted to regional sales mgr. for its newly redefined southern region. Brad Baker, ex-Bradco Supply, is now regional sales mgr. for ABC Supply’s new Southeast region. Among other ex-Bradco staffers, Marc Kalman is now business mgr. for metal parts; Frank Marccocio, commercial sales account exec; Bob Landrum, district mgr. for central Florida; Kim Burns, tile product mgr. for Florida; Drew Denick, specialty products mgr.; Ray Milewski, commercial customer relations mgr. for Florida, and Jack Morgan, residential product mgr. for Florida. Jayne Seagrave, marketing director, Vancouver Tool Corp., is the new president of the Worldwide DIY Council. She replaces former executive secretary Donald Droesch, who is retiring from the council.

1 W" 0.8E Durastrand® OSL Code-approved for short-span headers.

PointSIX™ Durastrand Flooring Webstock Ainsworth OSB is used in more wood I-joists than any other brand.

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An engineered subfloor solution, with patented tapered-edge technology, designed to offset the effects of moisture exposure.

Dana Deem has been promoted to president of 200-unit Window World, North Wilkesboro, N.C., replacing Blair Ingle. Hiroshi Nagai was named president of Mitsubishi Caterpillar Forklift America, Houston, Tx., succeeding Shigeru Tanemura, who returned to Mitsubishi Hq. in Japan. Stan Hathorn, Homeland Vinyl Products, Birmingham, Al., was elected chair of the Vinyl Fence, Deck & Railing Manufacturers Association, succeeding John Purvis, Kroy Building Products, Cary, N.C. Vice-chair is Mike Burkart, Waymark Fence & Rail Accessories, Denver, Co.; treasurer Peter Williams Jr., Eastern Wholesale Fence, Medford, N.Y.; secretary Mike McGuire, Enduris Extrusions, Jacksonville, Fl.; member-atlarge Paul German, Nebraska Plastics, Cozad, Ne., and AFA rep Bob Burton, Poly Vinyl Creations, Hudson, Fl. Scott Thomsen was named president of Guardian’s Flat Glass Group, Auburn Hills, Mi., effective Sept. 1. He will succeed Russ Ebeid, who is retiring after 41 years with the company.

Frank Vallot, Acadian Hardwoods & Cypress, Ponchatoula, La., was elected president of the Southern Cypress Manufacturers Association. Ernie Pyle, Ontario Hardwood, Keysville, Va., is now v.p. Pembroke “Pem” Jenkins, Turn Bull Lumber, Elizabethtown, N.C., was elected Hardwood Manufacturers Association president. First v.p. is Jack Shannon, J.T. Shannon Lumber, Memphis, Tn.; 2nd v.p. Skipper Beal, Beal Lumber, Little Mountain, S.C., and executive v.p. Linda Jovanovich. New directors: Tommy Battle, Battle Lumber, Wadley, Ga.; Richard Wilkerson, Anderson-Tully, Vicksburg, Ms.; Jeff Edwards, Edwards Wood Products, Marshville, N.C.; Mike McQueen, Anthony Timberlands, Beirne, Ar.; Nordeck Thompson, Thompson Appalachian Hardwoods, Huntland, Tn., and Butch Morgan, Louisiana Hardwood Products, Morrow, La. New to the executive committee: Wilkerson; Battle; Bob Miller, Frank Miller Lumber, Union City, In.; Terry Brennan, Baillie Lumber, Hamburg, N.Y., and Rhonda Kendrick, Kendrick Forest Products, Edgewood, Ia.

August “Gus” J. Coppola has been named senior v.p.-corporate development for the engineered products group of Quanex Building Products, Houston, Tx. Following Quanex’s acquisition of Edgetech, George L. Wilson is now general mgr. of Edgetech, and Michael B. Hovan is senior v.p.-sales & marketing for engineered products. Etienne McManus-White has been appointed chief marketing officer at Forest Stewardship Council-U.S. Colin Allkars is the new dispatcher at Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Deck Fastener Maker Expands to Tools and Accessories

Ipe Clip Fastener Co., Gaffney, S.C., is rolling out its own brand of tools and accessories, suitable for the toughest hardwoods. The new DeckWise line includes hardwood plugs, deck spacers, stainless steel screws with stainless or Colormatch heads, and a four-in-one Drill&Drive tool that allows builders to pre-drill, countersink or counterbore, then flip the countersink insert and drive the screw.

For confidence underfoot – and overhead – builders trust Ainsworth Engineered. For flooring systems that lay flat and true.

SteadiTred®

For stairs that won’t cup, sag or squeak.

Bull-nosed, span-rated stair treads are code approved and ready-to-install. Engineered for the job, they save time, money and waste.

For cost-competitive, sustainably sourced products, reliably supplied, choose quality. Choose Ainsworth. 1 W" 0.8E Durastrand® OSL Code-approved for stair stringers.

Rim Board Available in various dimensions: 1" and 1 B/i" Rim Board 1 B/i", 1 W" and 1 V" Rim Board Plus E-rated 1 W" 0.8 OSL Rimboard

IN Memoriam

Henry Benjamin Sedwick Jr., 89, founder of H.B. Sedwick Building Supply, Orange, Va., died April 5. After serving as an Army Air Corps navigator on a B-52 during World War II, he and his wife, Hazel, started a construction company in 1954 that later added a retail business. Jack Lee Monroe, 78, founder of JM Lumber, Port St. Lucie, Fl., died April 1 in Okeechobee, Fl. After serving with the Air Force during the Korean War, he worked for

Burner Lumber, Vienna, W.V., and married the owner’s daughter. He later joined Wickes Lumber, Daytona, Fl., and Scott Lumber, Parkserburg, W.V. He started his own company in 1984, and sold it to Stock in 2003.

Walt Freeman, 78, c.e.o. of Kentucky-Indiana Lumber Co., Louisville, Ky., died March 21 in Louisville. He attended the University of Kentucky and served in the Army.

Jack A. Johnson, 81, co-owner of Johnson Lumber & Supply, Stigler, Ok., died April 5. He and his wife founded the business in 1947.

Lee F. Adams, 76, retired owner of Lumber & Supplies Inc., Yarmouth, Me., died of cancer April 7. After graduating from high school, he became a part owner of his father’s business, Eastern Builders, Yarmouth. He opened his own yard in 1965, which he sold to Hancock in 1984. He also served as president of the Retail Lumber Dealers Association of Maine and on the Northeastern Retail Lumber Dealers Association board.

Richard Eric Fischer, 80, former co-owner of Warren Lumber & Millwork, Annandale, N.J., died March 12 in Marco Island, Fl. The Air Force veteran started as a home builder, before owning Hunterdon Lumber & Building Supply, which later became Warren Lumber.

Jack A. Batson, longtime manager of New Lenox Lumber Co., New Lenox, Il., died April 1. He served in the U.S. Army during World War II.

Carl Vickers Sumner, 93, cofounder of Wrightsville Lumber, Wrightsville, Ga., died March 23 in Wrightsville. He enlisted with the Army in 1942, and served with the Seventh Army division in Europe. After the war, he and Herbert Jackson founded SYP mill Wrightsville Lumber.

William Darrell Fisher, 78, owner and operator for 38 years of Fisher’s Lumber, Seneca, Mo., died March 30 in Houston, Tx. Joe Hearin, 99, founder of Hearin Lumber, Largo, Fl., died April 11 in Portland, Or. He started the company in 1954, after establishing Hearin Forest Products, Portland, Or.

Herbert T. Hover, 79, former managing officer for Neff Lumber Co., Findlay, Oh., died April 17 in Akron, Oh. He served as an officer for the Ohio Construction Suppliers Association.

Clarification

The machine applicators listed on page 17 of the March issue were not authorized by the Western Red Cedar Lumber Association. As well, the list was not meant to be exhaustive and may have included companies that distribute preprimed western red cedar, but do not operate their own finishing equipment.

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Building Products Digest May 2011

Building-Products.com

NAWLA 2011

• New Programs for Lumber Wholesalers • Industry Forecast • Credit Outlook • Grooming Talent • Safe Shipping • Traders Market • Effective Sales Presentations • Bad Sales Advice Building-Products.com

May 2011 Building Products Digest

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NAWLA 2011 New Business Programs

NAWLA programs help industry survivors thrive

T

HE WHOLESALE LUMBER INDUSTRY

has undergone transformative change over the last few years. It seems, however, that the economy is finally recovering, if slowly. It won’t be the same as before, and companies will need to position themselves to succeed. At this point, a company that made it through the recession is leaner, more efficient, and operating at lower cost. Normally, those improvements would give a company an edge over its competitors. This time, however, almost every other company has gone through the exact same improvements at the same time. Otherwise, they wouldn’t have made it. This means that companies will have to work ever harder since their competition is stronger too. This is where the programs offered by the North American Wholesale Lumber Association can help the industry.

Webinars & Distance Learning

Since so much in the industry has changed lately, NAWLA has recognized that its members and the industry are looking for ways to learn about current issues. In 2010, NAWLA recognized this and for the first time focused its education programs around four pressing topics: finance and credit availability, green building, workforce training, and the global supply chain. “We took a hard look at what we were providing our members and decided we want to get ahead of the curve,” says Gary Vitale, president and c.e.o. of NAWLA. “The industry is hungry to learn about specific topics that impact operations and our education program is now designed to provide that.” NAWLA says its webinars have been particularly effective lately, as

companies have cut back both their travel and training budgets. “The webinars allow employees to get the information they need without having the time and expense of an onsite program,” Vitale says. “It also has enabled companies to have multiple employees attend, which always helps with the takeaways and long-term implementation of the knowledge.” Over the last year, NAWLA’s webinar topics have included credit availability, China’s economic surge, the softwood checkoff, and new trucking regulations. NAWLA is already building on this foundation by hosting a webinar on May 19 with an economic forecast by Lynn Michaelis of RISI. Other topics in development include updates on China, transportation, and more green building. “We are particularly looking at the trucking industry. With the new safety regulations and the price of gas, the lumber distribution industry could see a substantial impact,” says Vitale.

Right Information at the Right Time

WOOD BASICS COURSE in March 2011 included a visit to McShan Lumber, McShan, Al.

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Building Products Digest May 2011

The industry is moving fast and so is NAWLA, to make sure you keep up with it. Today, information moves at the speed of the Internet, but companies don’t always have the time to look for relevant issues. Companies looking for fresh, innovative, and relevant information can turn to NAWLA for help. The lumber industry encompasses many business types, from manufacturers to distributors to service providers. But they all have two things in common: they are generally focused on lumber products and they all have to manage a business operation. NAWLA is in the process of providing in-depth, detailed reports on a Building-Products.com

monthly basis to help the industry stay abreast of current issues. “This industry is at the heart of many of the big issues of the day, such as sustainability, globalization, and taxes,” says Vitale. “We need to figure out a way to inform our members in ways they can’t get anywhere else.” Vitale notes that these reports will address issues affecting both the lumber industry and small businesses. The first two topics will be the dramatic increase in China’s demand for wood fiber and the impact of California’s Cap & Trade Program. Future papers will include economic reports, business practices, and legislative reports. “The inclusion of legislative reports may surprise some people, but those have a major impact on how we all do our business,” says Vitale. “For example, how many people in the industry know that the current administration has proposed to eliminate LIFO (Last In First Out) accounting practices?” NAWLA has indicated that they aren’t trying to influence legislation and regulation, only to inform its members of what they need to know. NAWLA has long been a member of the National Association of Wholesalers-Distributors, and it uses that resource for much of its information.

Workforce Development

A company is only as strong as its employees. With the lumber industry undergoing so much change, NAWLA is building on its strong foundation of workforce development to meet the needs of the industry. For decades, the Wood Basics Course has been the flagship education course in the industry. Many of today’s leaders got their start there, and companies continue to send new employees to learn how the industry works. NAWLA offered the Wood Basics Course in March 2011 at Mississippi State University, the first time in years that it was held in the Southeast. The class was one more step in the growing partnership between NAWLA and the College of Forest Resources at MSU. In May, the school will host the first-ever career exploration workshop for the NAWLA Education Foundation. “Each Wood Basics Course

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Building Products Digest May 2011

includes perspectives unique to the region, and by increasing our presence in the Southeastern U.S., we can better meet the needs of the industry and our members there,” says Vitale. The next Wood Basics Course will be held at Oregon State University in Corvallis, Or., Sept. 12-15, and registration has already opened. While the Wood Basics Course offers introductory education on the lumber industry, NAWLA has recently recognized the need for a next level of training. One idea they are considering is to create a second level lumber and management education program, which would create another layer of management training to the basic curriculum. “This possible new course will target managers who are already familiar with the industry. The focus won’t be production and sales, but distribution and operation,” says Vitale.

Global Networking

NAWLA is probably best known for creating networking opportunities for its members. Companies know they can go to NAWLA to learn more about national and regional networking, but they can now use their membership to help with global networks. NAWLA members are involved in both export and import activities, and carry a variety of products. Last year, NAWLA become the only association to be a member of both the Softwood

Export Council and the American Hardwood Export Council. By being a member of both organizations, NAWLA hopes to provide its members with the tools they need to succeed in the global marketplace. “Our membership in SEC and AHEC is already paying dividends. Last year, nine countries were represented at Traders Market, from four different continents,” Vitale says. “This year, in conjunction with SEC and AHEC, we’ve already met with companies from China, Brazil, Pakistan and the Mid-East about attending the show in Las Vegas.” The 2011 Traders Market will be in Las Vegas Oct. 19-21 at the Mirage Resort & Casino. Registration has already opened, and NAWLA says that the number of exhibiting companies registered is outpacing the last few years. The addition of more global buyers and suppliers to an already strong show should increase its value to everyone attending. The industry has changed the last few years, and so has NAWLA. Companies looking to find that extra edge should consider what NAWLA has to offer. Their established education, networking, and information programs can often make the difference.

– More detailed information on the services and programs offered by the North American Wholesale Lumber Association, including membership possibilities, can be found at www.nawla.org.

NAWLA met with Brazilian companies at first American Hardwood Export Council pavilion in Brazil. Building-Products.com

NAWLA 2011 By Suzanne Hearn, Forest2Market

Bad news, good news

Key risks to U.S. economy must pass before housing recovers T HE LUMBER AND building materials industry in the eastern U.S. will see some improvement in the shortterm. Unfortunately, key risks to the U.S. economy will quickly eclipse these short-term gains. Looking at the fourth quarter and beyond, the adage “bad news comes in threes” summarizes Forest2Market’s economic outlook: high oil prices will push the U.S. into the second leg of the double dip recession, and this will delay the onset of a full recovery for the housing market. The short-term improvement will come when the protracted winter weather in the Midwest and the Northeast ends. Weather there has delayed the start of the building season, significantly dampening southern yellow pine lumber prices. When spring settles in and the building season begins in earnest, three months of demand will be compacted into the remaining two months of the season. Once mills clear their existing inventory, prices will edge higher. Higher oil prices are the most significant of all the risks the economy

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Building Products Digest May 2011

faces at this time. Just as increased consumer spending began stimulating the U.S. economy (the key to a fullforce recovery), unrest in the Middle East and North Africa (MENA), increased demand for oil from Japan and China and the weakness of the dollar all combined to drive the price of oil higher. The monthly average spot price for West Texas Intermediate crude oil rose sharply in March, up from $89.58 per barrel in February to $102.94 per barrel (see chart below). We expect prices to remain high even if demand falls off in response to those high prices. When we look at the spectrum of factors that influence oil prices, they all point in one direction—up: • Investors are pricing in supply risks. Although some of the MENA conflicts appear to have passed the point of crisis, they could be re-ignited at any moment because the underlying causes of the discontent remain. • Doubt persists that production from other OPEC countries (especially Saudi Arabia) can be ramped up to replace the lost Libyan output. In

2010, Libya produced roughly 2% of the world’s supply of oil, or just under 1.8 million barrels per day. • OPEC countries argue there is little they can do to keep prices under $120 per barrel since prices are being stoked by speculators rather than a supply shortage. UAE Oil Minister, Mohammed bin Dhaen al-Hamli, commented: “International markets are choosing to ignore market fundamentals and bet on the worse case scenarios.” • Post-earthquake idling of some of Japan’s nuclear power plants will leave a power vacuum that will be filled with more traditional power sources. Replacing this lost capacity will require the oil-equivalent of 400,000 barrels per day, about 0.5% of the world’s 2010 consumption. • Japan’s tragedy has caused other countries, including Germany, Switzerland, Italy, China, Israel and Venezuela, to consider suspending their nuclear power programs. Increased demand for oil will reflect the extent to which these countries’ programs are indeed halted. • A succession of interest rate increases in China has succeeded only in slowing the rate of growth in oil demand rather than actually decreasing it. Together, the increased demand from Japan and reduced supply from Libya, will leave a deficit of 2.2 million barrels of unmet demand in the world, about 2.5% over 2010’s level. Add to these the U.S. Energy Information Agency’s estimate of growth in global demand of 1.5 million barrels in 2011 and another 1.6 million barrels in 2012, and that total Building-Products.com

grows to 5.3 million barrels, more than 6% higher than 2010 levels. Because of these increases, oil prices are likely to remain above $100 per barrel much longer than they have in the past. At these levels, oil prices represent a key risk to the U.S. economy. Higher energy prices cut into household budgets and siphon off money consumers would have spent in other sectors of the economy. Building products manufacturers will also feel the effects of higher fuel costs. According to the Institute for Supply Management (ISM), the prices-paid index rose by 3.0 percentage points for manufacturers in March. Wood products, construction and forestry industries all paid higher input prices in March, and inflationary concerns continue to grow. Profits margins will feel the pressure. The extent to which higher oil prices will affect the economy is a game of probabilities. If oil prices average $100 a barrel for the year, growth could be 0.3% lower than if prices had stayed at last year’s average of less than $80 a barrel. Our forecast for GDP factors this possibility in (see chart at right). If prices push even higher, to the $125-per-barrel level, economic growth would be a full percent lower. A few months at $150 per barrel and a second recession is nearly certain. As the chart at right shows, our forecast does show a brief downturn into the second leg of a wobbly Wshaped recession. Lasting roughly three quarters, we anticipate the bottom will be reached in the first quarter of 2012. By the first quarter of 2013, the growth rate will exceed three percent, and—barring unforeseen

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Building Products Digest May 2011

events—stay in positive territory. Because residential construction is a lagging economic indicator, the stalled housing market will exert downward pressure on the economy. The market for new construction continues to be abysmal: the number of building permits issued in February 2011 was 17.5% below December 2010’s level, and the number of housing starts also plummeted (see chart above). Builder reticence to boost activity in the short run is understandable when you take into consideration: • Inventory of existing homes is hanging just under the nine-month mark. • Inventory of new homes is nearly the same. • Another 1.8 million homes are sitting in shadow inventory (in, or on the brink of, foreclosure). • Another two million homeowners are at least 50% underwater on their mortgages (some portion of these will eventually wind up in short sales or foreclosure). • Clearing the market of these issues will take two years. Several factors are exacerbating

residential construction woes. Taken together, they signal that the climb out of the abyss will take longer and be more difficult than expected. • The median price of a new home is $74,500 (48%) higher than the median price of an existing home. In the past, the differential typically ran about 15%. • Home prices continue to fall. The Case-Shiller Home Price Index has declined for six months straight. According to Standard & Poor’s David Blitzer, “none of the statistics are indicating any form of sustained recovery.” • Looking ahead, the Federal Deposit Insurance Corporation (FDIC) is considering a plan to require a minimum 20% down payment for most residential mortgages. The only remedy for the state of the housing market is time. Once we make our way out of the likely second recession, the two years of overhang in housing inventory will be cleared from the market. And once these two pieces of bad news are behind us, population growth and pent-up demand will drive the recovery in the residential construction market. In an average year, 1.1 million new households are formed in the U.S. During the recession, that number fell to 0.5 million. For the period since the recession began, the backlog of demand stands at roughly 2 million households. Post-recession, household formations are expected to range from 1.2 to 1.4 annually. There, finally, is the good news. – Suzanne Hearn is sales & marketing manager at Forest2Market and host of F2M’s Economic Outlook podcast. Contact her at (704) 540-1440 or suzanne.hearn@forest2market.com. Listen to the podcast at www.forest2market.com.

Building-Products.com

NAWLA 2011 By Jim Bartleson and Chuck Curl, Blue Book Information Services

Credit plays vital role in lumber industry outlook “T

are but two aspects of what is real, and whether we see the tragic or the humorous is a matter of perspective.” – Arnold Beisser RAGEDY AND COMEDY

Perspective factors heavily into any assessment of current business conditions. Many lumber companies today continue to bravely face an environment best described as perilous. Some—through timely decisions, savvy management, international opportunities, and plain good fortune—are operating profitably. To sum it up, the present business environment remains mixed at best. Credit continues to be an important element influencing these circumstances. Consumer credit is closely watched by many lumber business owners, given the obvious impact on lumber demand by housing construction and home improvements. As widely reported elsewhere, we also closely monitor employment metrics, inflationary undercurrents, tight lend-

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Building Products Digest May 2011

ing practices, skyrocketing fuel prices, and volatile consumer confidence because of the powerful, direct correlation these factors have on industry commerce. With specific regard to credit extensions to businesses—for opera-

tional or capital requirements—we’ve observed relatively limited instances of new, expanded loan packages. Generally speaking, such programs have been issued to well capitalized firms with strong credit ratings, seeking to acquire failing companies or assets at fire sale prices. As for existing credit facilities, notes accompanying the balance sheets we review continue to reflect negotiated amendments to loan terms and covenant modifications (including required financial ratios). In addition, we have observed a number of companies reducing their reliance on bank credit or decreasing leverage by reallocating cash otherwise used for operating expenses to pay down debt. From financial statements and accounts receivable aging data, we again see a mixed bag with respect to trade credit. Here are some general observations: • Timely remittances on accounts payable continue to vary, with debtor quality and cash flow throughout the

Building-Products.com

supply chain as the logical primary determinants. As evidenced below, reported Blue Book “pay indicators” reflect this variability. For companies with reported pay indicators, about 40% pay “mostly within terms.” Nearly 35% remit “regularly beyond terms.” It should be noted, however, that this distribution of pay has been relatively consistent over the past several quarters. In other words, we have not observed a noticeable decline (or improvement) in industry pay during that span. • Overall, credit portfolio quality remains a focus. Most creditors continue to reduce their exposure to highrisk, slow-pay accounts while concentrating on the retention of moderateto-low risk accounts, even accepting some slowness in pay. Providing an industry perspective, Roger Peterson, credit manager for West Fraser Timber Co. Ltd., Vancouver, B.C., comments on the economy’s broad impacts and the real-life applications regarding trade credit: “After years of unlimited building and open purse strings, 2007 hit our industry like a ton of bricks. Credit limits were reeled in, our customers were in dire financial straits, as were the banks they were dealing with. The great recession has taught us a hard lesson. It is my belief that credit will for many years to come remain a privilege that is earned rather than a right that is given.” As observers of credit conditions for more than a century, we affirm that the circumstances of the past two years have indeed been the most challenging in more than a generation. We share the view that safely extending credit—by following sound credit policies and using trusted credit tools—is critically important. Finally, we are also optimistic that forecasts for modest reductions in unemployment will contribute to a strengthening economy. As this unfolds, we believe the credit climate—including lending and trade— will certainly improve.

– Jim Bartelson is executive v.p. and Chuck Curl is director of ratings at Blue Book Services, publisher of the Lumber Blue Book. Contact them at (630) 6683500, jbartelson@bluebookservices.com, or ccurl@bluebookservices.com. Building-Products.com

May 2011 Building Products Digest

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NAWLA 2011 By Chuck Thomas, CT Creative

Growing talent in the lumber business

T

HE LUMBER INDUSTRY is facing some stiff challenges: a significant loss of businesses during the recession, a rather low profile in the public eye, and the need to bring fresh ideas and new talent to the industry. The North American Wholesale Lumber Association is working to address those challenges and create new opportunities through the newly formed NAWLA Education Foundation. The primary objective of the notfor-profit foundation is to seed growth in all sectors of the industry, by attracting a new generation of leaders and equipping them for success in building and managing sustainable businesses in the new green economy. The first initiative funded by the NAWLA Education Foundation is a three-year pilot program to introduce career development programs to college students in every region of the U.S. The very first program of its kind begins this May with a career exploration workshop at Mississippi State University through its College of Forest Resources. Undergraduate and graduate students who attend the fiveday workshop will be introduced to the entire supply chain of the North American lumber industry and will then be linked to summer internships at a variety of companies, contributing in such areas as accounting and finance, marketing and sales, engineering and operations. Gary Vitale, NAWLA president, sees benefits for the entire industry— from timberland owners to the whole-

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Building Products Digest May 2011

sale businesses NAWLA represents to the retail sector—in this effort to introduce young talent to the vast commercial and career opportunities in lumber. “As an industry, we’ve advanced significantly in technology and improving the distribution channel,” he observes. “But outside of our industry, young people are not familiar with the lumber business. They have no idea of the billions of dollars of commerce in lumber and the career opportunities available. This program is intended to educate students from a variety of majors on career options, give them hands-on experience through internships, and ultimately motivate them to make their careers in the lumber industry.” The NAWLA Education Foundation is working to identify a host university in each region to roll out the pilot program over the next three years. NAWLA has enlisted Dovetail Partners, a highly regarded think tank and educational resource specializing

in the forestry and forest products sector, to work with each university to develop a career development program uniquely suited to its region’s forestry assets and needs. The pilot workshop at Mississippi State University draws upon its relationship to NAWLA through the Wood Basics course that has been offered for years, its strength in both forestry and business studies, and its accessibility to timberlands and mills. Andy Ezell, professor and head of the Department of Forestry at Mississippi State, explains that the campus is located in the center of the “Wood Basket,” which stretches from East Texas to North Carolina and from the Gulf to Tennessee. As a result, the campus boasts its own 8,000-acre forest, where it conducts forestry research, and stands in close proximity to mills and manufacturing and distribution operations. Professor Ezell says the career workshop fills a big gap by introducing non-forestry students to the business opportunities in lumber and wood products. He believes that few people outside of the industry understand where wood comes from and how the supply chain turns tree seedlings into lumber, furniture, paper and thousands of other everyday items. “This workshop provides an opportunity for our very best students on the business side,” he notes.“The wholesale lumber sector is probably the least known aspect of the business.” In addition to MBA students and Building-Products.com

business undergraduates, the program is designed to attract students from construction, engineering, design, environmental science, and other relevant majors. The pilot Career Exploration Workshop at Mississippi State includes both on-campus presentations and field trips: Day 1: The basics of forest ecology, management and certification, and a field trip to view forest management and harvest operations Days 2 and 3: The business of lumber (products/manufacturing and the supply chain/distribution) and tours of state-of-the-art sawmills, lumber manufacturing facilities, and distribution centers Day 4: Green building concepts and a field trip to see how a green building project incorporates sustainable wood products Day 5: Ecosystem markets, a career panel, and the NAWLA internship program The first workshop will set the stage for future workshops, but Vitale does not expect that the Mississippi State experience will be replicated exactly at other universities involved in the NAWLA program, due to the unique characteristics of the lumber business in each region. Also under development is the internship program, which will be available to participants in the Career Exploration Workshop. For the first crop of students, NAWLA will be instituting a system to match each student’s experience and interests with a participating company’s need for interns, whether in wholesale lumber, timber-

lands, or retail operations. “The career development program is intended to be an industry-wide initiative,” says Vitale. “We anticipate attracting top, qualified students who will be motivated and excited to contribute to businesses within our industry. We encourage groups from every sector to contact us if they are interested in participating in the internship program.” The hope is that industry interest will grow as the program expands over the next three years. Still, the fledgling program is in the experimental stage. “We don’t want to do too much too fast,” Vitale explains. “We want to make sure we do it right.”

– Chuck Thomas is president and founder of CT Creative (ctcreative.com), a Chicago-area strategic marketing firm focused on helping companies and organizations grow and thrive. In his work with NAWLA, he has overseen extensive market research and brand positioning for the lumber industry. Contact him at chuck@ctcreative.com.

HOOD LUMBER “Long and Strong”

Specializing in quality Southern Pine Lumber, ALL treated with anti-mold protection. We provide a full product mix of 2x4 thru 2x12, small timbers, and lengths up to 24 feet, from mills in Mississippi and Georgia.

Phone 601-264-2559 Fax 601-296-4740

www.hoodindustries.com Building-Products.com

May 2011 Building Products Digest

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NAWLA 2011 By Don Osterberg, Schneider National

Building the foundation for safe shipping

C

SA. CAPACITY. CONGESTION. Are these three words included in your business plan? Is your transportation manager thinking about the impact of these issues? Does your company have a plan for shipping its products and manufactured goods if the driver shortage impacts transportation availability? If you answered “yes,” congratulate yourself—you’re a member of a small group that is on track to ensure its products continue to ship safely and efficiently from point-of-origin to final destination. But if the questions have you scratching your head, it’s time to dive in and learn how these issues will impact your supply chain moves, cost and business liability.

CSA

In December 2010, the Federal Motor Carrier Safety Administration

(FMCSA) launched Compliance, Safety and Accountability (frequently referred to as CSA), a program that replaces SafeStat with the objective to more accurately measure the safety performance of motor carriers and commercial drivers. CSA will help FMCSA and its state partners more effectively use limited resources to identify high-risk practices and behaviors in carriers and drivers and to help reduce large truck-involved fatality crashes. CSA uses a Safety Measurement System to score carriers and drivers on safety-based violations involved in crashes and roadside inspections. The program compiles the data into seven Behavior Analysis Safety Improvement Categories (BASICs). Every inspection violation within the BASIC is time- and severity-weighted, and each BASIC is ranked to trigger an intervention process. Once a scoring

threshold is exceeded (often referred to as an alert level), a carrier will be subject to: • A warning letter • Additional roadside enforcement • On- or off-site investigation • A comprehensive review • A cooperative safety plan • A notice of violation • A notice of claim interventions CSA will put added pressure on the trucking industry. The result will be fewer—but safer—truck drivers available for hire. You can’t put a price on safety, but as the pool of available drivers with good safety records becomes smaller and competition to hire those drivers becomes more intense, it will inevitably add to the cost of transportation. In addition to the economic impact CSA will have on carriers, shippers, drivers and consumers, the public availability of a carrier CSA score may increase a shipper’s liability exposure. If a non-CSA compliant carrier is involved in a crash, liability could extend to the shipper by way of inadequate carrier qualification processes or standards in making freight tendering decisions. In litigation involving the previous safety scoring system, plaintiff’s attorneys struggled to link SafeStat scores and crash risk. With CSA, there will be no struggle linking the two. Educating transportation managers on CSA and selecting carriers compliant with CSA BASICs will be crucial to the success of shippers.

Capacity

With 758,682 carriers in the Department of Transportation’s database, only 92,184 carriers (12.15%) have sufficient data to have a CSA score. Of those carriers, 52,967 have

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Building Products Digest May 2011

Building-Products.com

at least one alert-level CSA BASIC score. With said carriers employing more than 1.5 of the nation’s 3.6 million truck drivers, nearly 50% of the capacity is under DOT scrutiny because of high CSA scores. With the growing U.S. Truck Tonnage and Truckload Freight Index, there will be more demand for drivers. Yet federal regulations like CSA and potential changes to Hours of Service rules will combine to create a pinch in the driver pool. With the FMCSA’s proposed Hours of Service changes, we believe the rules will impact driver productivity (thus impacting capacity) and will come at a cost that cannot be absorbed by carriers alone. The market will bear additional costs in the form of increased shipping rates and decreased productivity. Reengineering existing routes, updating and testing dispatch software, renegotiating contracts and prices with customers, and retraining drivers are a few tasks that will need to be addressed when the rules change.

work to develop a system for monitoring CSA scores and tendering freight to safety-conscious carriers who will ensure their products are delivered safely. Although your transportation providers are the ones operating in this complex environment, your business can’t afford to sit back and allow the chips to fall where they may. Get smart on the issues and make sure you select transportation providers that protect your best interests. If they are

prepared, informed and operating legally, you will be in the driver’s seat when it comes to mitigating three additional important issues: risk, liability and cost.

– Don Osterberg is senior vice president of safety, security and driver training for Schneider National, Green Bay, Wi., provider of truckload, logistics and intermodal services. Contact him via www.schneider.com or get more info on CSA at csa.fmcsa.dot.gov/default.aspx.

Congestion

A final factor influencing the transportation industry is infrastructure. Government spending has been significantly underfunded for several years, resulting in excess roadway congestion. Congestion and the lack of safe truck parking are important issues on U.S. highways and are projected to worsen over the next several years. The decreased productivity that will result from the Hours of Service ruling will only accelerate congestion. Increased investment in new transportation infrastructure will benefit and improve public safety for drivers, carriers, shippers and the motoring public. Should legislation be drafted or passed, tax increases in the form of fuel or mileage user fees and tolling will be implemented to offset the cost of highway improvements.

The Blueprint for Success

To keep the supply chain running efficiently, shippers should educate their transportation teams on what is happening in the industry and learn how the changes or proposed legislation will impact shipping times, rates and business liability. One of the most important things for shippers to do is solicit CSA scores of the carriers they use. Then they can Building-Products.com

May 2011 Building Products Digest

43

NAWLA 2011 NAWLA Traders Market

NAWLA Traders Market moving to Las Vegas

C

OMING OFF ITS fifteenth successful year, the NAWLA Traders Market is shaking things up and moving to Las Vegas this year. It will be the first time the show is held in a city other than Chicago or Dallas. The 2011 show is slated for Oct. 19-21 at the Mirage Resort & Casino. Since 1996, Traders Market has held a unique position among lumber and building material tradeshows since it is the only one that is focused almost exclusively on the lumber sup-

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Building Products Digest May 2011

ply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers. Last year, the show hosted 240 exhibiting companies and 1200 individual attendees, representing a total of 500 companies. These companies comprise all aspects of the supply chain: manufacturers, wholesaler-distributors, and service providers. This focus on supply chain partners

has fostered an unrivaled atmosphere for networking. In today’s global marketplace, Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million dollar deals are still made with a handshake, that personal networking is invaluable. Last year’s show in Chicago created considerable buzz. Attendance increased more than 3% over 2009. The general feeling was that the economy had finally started to turn. NAWLA has indicated it wants to build on this momentum, while increasing the value for its members and attendees. “Each year, we survey the attendees and make changes and improvements to the show based on their feedback,” says Gary Vitale, NAWLA president and c.e.o. “Last year, we changed the floor hours, increased networking time, and boosted sponsor visibility. This year, we want to consolidate our position as the premier tradeshow for the lumber supply chain.” While many of the final details of the show are still in development at this time (such as speakers), the schedule and related events have been finalized. Like last year, the floor show will be open on Thursday and Friday, giving attendees a chance to return home or to stay and enjoy Las Vegas for the weekend. Other new additions to the 2010 show, such as the Product Showcase, will also return for the 2011 show. Since the show will be on the famous Las Vegas Strip, NAWLA is planning to add some special Vegas flair to the traditional Traders Market networking and business opportunities. For example, show attendees will Building-Products.com

NAWLA Traders Market, the premier trade show for lumber wholesalers and manufacturers, moves this fall to Las Vegas, Nv.

have the chance to get special discounts for Las Vegas area golf courses, providing an additional venue to conduct business. Networking receptions will take advantage of special areas at the Mirage offering a “Vegas flair,” such as Siegfried & Roy’s Secret Garden and Dolphin Habitat. “Our goal is to provide a great networking opportunity while recognizing that Las Vegas is a one-of-a-kind location,” says Vitale. “The entertainment options in Las Vegas are limitless. After the last couple of years, the industry could use having a little fun while also getting much needed work and sales done. “We’ve also recognized the global supply chain is just that: global. As the domestic market has continued to shrink, the global market is growing. We want those companies to be a part of the show also.” Over the last two years, NAWLA has rapidly expanded its participation in global issues. The 2010 Traders Market included companies from nine different countries. This year, NAWLA is working with other organizations, such as the Softwood Export Council, and the American Hardwood Export Council to connect overseas buyers and sellers. In March 2011, NAWLA visited with some of the largest lumber companies in China to talk about attending the show, and the feedback has been very positive. The Traders Market website—www.nawlatradersmarket.com—has complete information on the schedule, fees, floor layout, hotel reservations, and sponsorships. Registration has already opened for exhibiting companies and individual attendees. For the first time, registration will be exclusively online. Building-Products.com

May 2011 Building Products Digest

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NAWLA 2011 By Bill Blades

Prepare for meaningful sales presentations… and happy endings

T

HEY SAY HOMEWORK is for kids who want to get ahead in life. But the same practice holds true for lifelong learners, especially those who desire to move forward in their career. Imagine if you went to spring training and couldn’t hit a curveball. Fastballs were no problem; in fact, you often hit the hardest fastball over the fence with minimal effort. Since the curveball always made a shmuck out of you, how long would you stick around before you were sent back to the minors to figure it out? Not long! So let me start you out with a few questions, and if you get them right, you get to stick around for additional homework. Do you agree that most salespeople are boring? Most business telephone calls are boring? Most busi-

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Building Products Digest May 2011

ness letters are boring? The only time boring is a good thing is in the mining and oil drilling business. So, let me share a few tidbits so upcoming visits with clients and co-workers add a sheen to their day… and promising results to your future. If you pay attention and apply but one or two of these action items to your daily routine, you’ll find yourself as a welcome face in the big leagues with fresh ideas. It’s your willingness to adjust your swing in sales that will ultimately reward your actions.

1 . The “5 P’s” represent “prior preparation prevents poor performance.” Instead of just showing up, prepare a plan that leads to a happy ending. It’s like making a movie, but

you run it backwards with the ending being “How do I want this movie to end?” Your movie includes an outline of things you want to learn and assures success for you and your client.

2 . Remember that real selling is not telling. It’s 90% asking the right questions while taking great notes and only 10% talking. Brevity at its best. Why? Asking important questions sets you apart from the pack who just drones on and on. It’s this simple! Would you want a surgeon operating on your brain who didn’t ask questions and obtain requested brain scans? 3 . Determine the client’s personality style. Is she a driver/dominant-

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type person? If so, be quick and effective. Don’t ask idiotic questions such as “Oh, you like golf?” after seeing a dozen of her framed, golfing photos. Stick to the agenda of what you laid out ahead of time. If she’s a steady/compliant person, she will want details, so utilize literature and data more than your vocal cords. Providing written data will enhance her trust in you and lower her resistance to a scary change. If she is a high-I or influencer, she’ll love to talk, which is terrific because you won’t have to. Just listen and ask questions about what you heard and take notes. If you are a high-I, be careful as two high-I’s in the same room can sound like a National Speakers Association convention, a couple thousand people talking and no one really listening. The convention sounds like a 747 going down the runway. Doing your homework will make a difference!

4.

Anyone can handle big, routine tasks, but smart people pay attention to every, tiny detail. Most people have a short attention span—for most males, it’s only about three sentences. That’s why droning on and on is a waste, for both speaker and audience. I’d trade one of my TV remote-controls any day for one that could change salespeople until I found one I liked. Little details include using your car mirror or a restroom to insure your appearance is perfect. A loose tie is as much a killer as a bugger in your nose. Yes, I’ve seen that more than once. Remember, their first impression of you is made before the first word is ever spoken. Be the person who is both respected and admired, the versatile hitter who can hit any pitch to any part of the park at any time.

5.

What is your greeting going to be? If it’s pretty much the same for everyone, you’ll be off-target and boring. And often your first question is going to speak volumes about your personality. If your first question is the same one you used yesterday, you’re not thinking and planning. We all know that light travels faster than sound. That’s why some people appear bright—until they speak. I was field training a “salesperson,” and Russia had just invaded Georgia. The salesperson, thinking we were discussing the state of Georgia, asked, Building-Products.com

“Why Georgia and not Florida?”

6 . So, how can you set up a great first visit? When the client advises, via phone or email, to pick “any time between 9:00 and noon,” ask for 9:46 a.m., then send a written confirmation.

new things at the door. Better yet, pack your bags and head back to the minor leagues. Even small innovation creates big differences. You’re in the people business… so set the tone that you’re a different breed. The last paragraph in your note might read:

Some of you are thinking, “That’s too cutesy for me.” If so, please check your attitude and unwillingness to try

And a hand-written postcard beats an email almost every time.

Dear Mr. Jones, To confirm our meeting, I will be at your office: • Thursday, October 23 • at 9:39 for our 9:46

And to confirm, I’m not bringing any samples or literature. I asked for just 11 minutes to learn. You’ll like my different approach, and I’m excited about meeting you! – Czar Blades

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May 2011 Building Products Digest

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7.

See how the above point sets the client’s mindset into the assumption mode of “I think I’m really going to like this guy.” I coached a salesperson through the process for our initial visit with a Fortune 500 client in Atlanta. The coaching also included the salesperson not scheduling any other client visits before this important appointment. Rather, I told him to go get his car washed just before the visit. He did such, but there were several pieces of white lint on the front seats. I helped him remove them –and a smear on the passenger side window. When we arrived, the client was in the lobby. Q: And what was he holding? A: Our postcard. Q: Why was he in the lobby with the postcard? A: To see if we were on time, of course, but he was also looking forward to meeting us. We departed the lobby for the car

and the client got in—and looked around the spotless vehicle. He didn’t close the car door or put his seat belt on. He then looked at the wash cloth I had the salesperson put under his accelerator and said, “You’re right… you guys are different.” If you’re thinking I went to the extreme with the wash cloth idea, you’re correct. But the last thing a client sees upon your departure is the back of your jacket—and to the back of your shoes. The smallest detail can help (or hurt). All too often the client is thinking, “Is this the person I really want to hitch my wagon to?”

8 . Whether meeting with clients or co-workers, remember that many people are under some form of stress, get bored with mundane meetings, or they have many things on their mind. I co-authored a book with Bruce Jenner,

the former Olympian. The publisher asked him, “How do you and your friend Billy Blades overcome attention deficit disorder?” It’s a simple formula. Major time on major things, minor times on minor things—and clients are not minor things. As I stated above, I ask important questions so that I get important information. If the client or co-worker starts meandering off-course, I’ll ask a question such as “Miss Jones, you mentioned a minute ago that you ____________. Can you tell me more about that?” Be the orchestra conductor who controls the flow of information. Allowing them to chit-chat will trap you into a mediocre meeting—and an outcome of undesired results.

9 . Remember to limit your talking… the plague that’s rampant among the sales profession. These non-stop talkers are 98% to 99% of the sales profession, and they give the rest of us a bad name. When field training, I witness it in abundance. • Salespeople (and managers) interrupting. It’s not only rude, but you’re sending a message that what you have to say is more important than what they are sharing. • Salespeople will open their mouths repeatedly while the client is speaking. It’s a clear sign of not listening (and learning), and it alerts both the client and me that the salesperson is not listening. Incredibly, I usually make more notes than the salesperson—and the client sees and appreciates it… often with a wink or nod. When we leave, I often ask the salesperson, “What did he mean when he said ‘____________?’” More often than not, the reply is “I didn’t hear

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Building Products Digest May 2011

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that.” If the salesperson doesn’t interrupt or continuously open his mouth, he “steps” on the last word out of the client’s mouth. No pause or follow-up question. Just immediate talking.

1 0 . Be worldly. Read everything worthwhile so that you are constantly learning. If you can share insight on almost any topic, you’re a serious student. And if you study clients like a book, you’ll be able to clip and mail articles to a client who is keen on the subject matter. I like USA Today because the client usually reads their local newspaper. The big challenge here? Most salespeople don’t read newspapers or professional books.

1 1 . Your departure must be as cheerful and business-like as your arrival. I read in Spirit that “optimistic salespeople outsell their pessimistic counterparts by 56%.” I believe the percentage is much higher than that, but it is proof that half of the people you meet are below average. Tal Ben-Shaher, author of Being Happy: You Don’t Have to Be Perfect to Lead a Richer Life, wrote, “There are two kinds of people who don’t experience painful emotions such as disappointment or anger or envy or sadness or anxiety: psychopaths and the dead. However, to feel happy, we need more than that. We need what we’re experiencing to be meaningful.” If you follow my suggestions, you’ll be looked to as a true provider of value at every client and co-worker meeting. Remember there also are unique opportunities to mail articles and other things to bring joy and value to others.

It’s a method to grow your market.

1 2 . For worthy clients, follow up in writing to state what both you and the client agreed to do, including the due date for the next step(s). If you don’t, you’re just hoping the client will remember everything both of you agreed to do. Accountability reigns supreme, so never look at the follow-up card as just another client visit. Email if you wish, but icing on the cake is to also mail a handwritten note. If someone tells you life is too short to do all of these things, I suggest you tell them, “If you’re not willing to try, I’m afraid life for you will be too long.” Never argue with an idiot. He’ll drag you down to his level and beat you with experience. And besides, the idiot went down to the minors and you nailed your spot in the big leagues! – Bill Blades, CMC, CPS, specializes in growing people and revenue in sales and leadership. Contact him at (443) 477-0061 or wblades@aol.com. Visit www.williamblades.com.

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May 2011 Building Products Digest

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NAWLA 2011 By Dave Kahle

The absolutely worst sales advice

I

WAS RECENTLY ASKED what’s the worst single piece of advice to a salesperson I’ve ever heard. Wow. I loved this question. I don’t think I’d ever been asked it before. I can’t identify just one single piece of advice. I’ll have to opt for two. I’m going to identify them, and then explain why I think they are so damaging. They are “Be yourself” and “Learn on your own by trial and error.”

1. Be yourself.

I just read, on one of the LinkedIn groups of which I am a member, a newly self-appointed sales trainer advising salespeople to “just be yourself.” That is good advice if you are naturally self-motivated, goal-driven, and highly organized; if you are intelligent, personable, empathetic

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Building Products Digest May 2011

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and sensitive; if you have great listening skills, and if you possess the ability to connect with anyone, paint word pictures, tell enthralling stories, and ask for action. If that’s not you, then being yourself isn’t quite good enough. You’ll have to work on some things if you want to become better. Almost every salesperson I have ever met, myself included, has some rough spots that should be smoothed out. As a professional salesperson, you are never finished with your lifelong task of making yourself better. The ultimate challenge for professionals is the constant need to change themselves in order to become better. It takes drive, discipline and energy, continually applied and rightly focused, to improve. “You’re okay the way you are” may be an idea instilled in you by your mother in order to make you feel good about yourself, but in the real world of commerce and sales, it is a bromine that takes the energy out of the process of improving yourself, and provides an easy hiding place for those who are not motivated to excel. The truth is, you are not good enough! Not yet. If you are a professional, you get that. You understand that you can, and should, continually improve and

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make yourself better. Vince Lombardi said, “We will constantly strive for perfection, knowing full well that we will never attain it, because no one is perfect. But we will strive for perfection, for in the process we will catch excellence.” Which would you rather? A sales force of people who think they just need to “be themselves” to do well. Or a group that thinks they can always become better, that there standards for how you do sales well, and that they need to work hard and consistently to enhance their skills, improve their practices, and develop their competencies. A group who strives for perfection. Silly question. If a sales trainer tells you that you just need to “be yourself,” run from them.

2. Learn on you own, by trial and error.

Certainly, learning by trial and error is possible. We all do it. It just isn’t very efficient, nor very effective. When I say it isn’t very efficient, I mean that there are quicker, easier ways to learn and improve than to rely exclusively on trial and error. Look, other people have gone before you and figured out this thing called “sales.” There is a body of knowledge

May 2011 Building Products Digest

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about how you do sales well. You can spend five years trying to figure it out on your own or you can buy a book, by someone who is an expert in it, and learn far more in five hours. Which makes more sense? For the life of me, I cannot understand the prevailing idea among employers that their salespeople will just learn on their own, by trial and error. From my personal experience, I believe that only about 5% of employers actually invest in the growth and development of their salespeople. Nor do I understand the 95% of salespeople who have not spent $20 on their own improvement in the last 12 months. I am amazed that so many people think they have the time to learn exclusively by trial and error. I don’t. When I first began my consulting practice, I went out and got all the books on how you build a consulting practice. When I first starting speaking and presenting, I hired a coach to help me develop quickly. When I wrote my first book, I read all the books on how you do it before I began to write it. I couldn’t afford to waste time and money making stupid mistakes. When I say it isn’t very effective, I mean that most people, most of the time, get it wrong! Most of us, myself included, have distorted views of how we appear to other people. We have distorted views of how our actions impact people, how the customers really felt, and why we didn’t get the order. If we base our decisions about what’s effective on the basis of our perceptions of what we did well and poorly, we will be wrong much of the time. As evidence of this, I’ll appeal to your own experience. Sales managers and sales trainers, how many times have you made a call with a salesperson, debriefed afterward, and discovered that the salesperson didn’t have a clue as to what really happened in the sales call? In my experience, it is most of the time. I’m not picking on salespeople. It is human nature. We all see reality through our unique perspectives, we all put our personal spin on things. A study was done a few years ago to see if salespeople could identify their most effective practices. Two hundred good salespeople were interviewed, and they indicated the practices they thought brought them the results. Guess what happened when the researchers accompanied them into the field to verify their ideas? There was “no relationship” between what they said they did and what they actually did! Now, don’t misinterpret what I am saying. We should all learn by trial and error. Analyzing our failures and changing our behavior to avoid them in the future is a classic approach to personal growth, and a discipline to which we should all adhere. My problem is with those who promote it as the exclusive way to learn to sell well. It is neither efficient nor effective. The advice to “be yourself” and “learn exclusively by trial and error” are two of the most pernicious ideas in the world of sales. Don’t let them misguide you! – Dave Kahle has trained tens of thousands of distributor and B-2-B salespeople and sales managers to be more effective in the 21st Century economy. He’s authored nine books, including his latest, How to Sell Anything to Anyone Anytime. Reach him at (800) 331.1287 or via www.davekahle.com.

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Beauty of a Deck

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Building Products Digest May 2011

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Capstock PVC Decking

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Redwood Decking & Railing

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May 2011 Building Products Digest

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TEXAS DEALERS EXPO Photos by BPD

LUMBERMENS ASSOCIATION OF TEXAS held its 125th annual convention April 7-9 at the Worthington Hotel, Fort Worth, Tx. [1] Kirby Ewing, JoAnn Gillebaard. [2] Brian Suggs, Jarrod Brashers, Jamie Hursh. [3] Lydia Hutchins, Charlie Sullins, Shannon Lowe. [4] Curtis Davis, Craig Marks, Bill Schmidt, Dean Ruonavar, Charles Bradford. [5] Mark Hartness, Donald Blevins. [6] Tim McCarthy, Rose Ruonavar, Brandon Bibb, John Misslin. [7] Joe Poe, Ron Longhofer, Tom

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Building Products Digest May 2011

Westbrook, Bill Washerlesky. [8] Brian McCoy, Robert & Telisa Marsh, Meagan McCoy Jones. [9] Robbie Temple, Ric Vega. [10] Mia Montgomery, Jackie Tollett. [11] Jim Wilkinson, Scott Chapman, Teri & Isaac Hall. [12] Kelly Matthews, Wayne Miller, Ryan Traczewitz, Ginger & Melvin Faircloth. [13] Mike Rainwater, Gwen Milsap, Ron Park. [14] Tony Rocha, Mark Maberry, Larry Hawkins. [15] Steve Harris, Myron Boswell. (More photos on next two pages) Building-Products.com

TEXAS DEALERS EXPO Photos by BPD

MORE LAT SHOW (continued from previous page): [1] Bruce Agness, Eddie Stafford, Don DeGroot. [2] Robert Harris, Betty Evans, Nathan Potter. [3] Bennett Cromer, Mike McClendon. [4] Chad Mizell, Randy Warner, Kendal Garrison, Byron Pinder. [5] Kory Klein, Ben Meachen, Steve Hickman. [6] Herman Sanchez, Sandra Hamilton, Chris Crucitt, John Smith. [7] Roy Deering, Jeff Christensen. [8] Jason Blair, Royce Christopher. [9] Dan Coleman, Calley Fromme, Melba Coleman. [10] Building-Products.com

Joe Breeden, Steve Miller, Marilyn Archer. [11] Lance Odegaard, Ray Miller. [12] Jeff Elms, Emily Fiesler, Kenny Erb. [13] Baldemar Hernandez, Kyle Williams, Grey Frey. [14] Rufus Duncan Jr., Robert Archer. [15] Ronnie Spradlin, Gerv Keith, Mike Harrison, Taylor Strube. [16] Courtney Krittenbrink, Richard O’Dell. [17] Dave Corna, Garnett Douglass. (More photos on next page) May 2011 Building Products Digest

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TEXAS DEALERS EXPO Photos by BPD

EVEN MORE LAT SHOW (continued from previous two pages): [1] Jeremy Howard, Chuck Lencheck, Eddie Howard. [2] Aimee Edmond, Kim & Darlene Sebastian. [3] Chris Bailey, Don Barnes. [4] Bill Cullen, Sam Sanregret, Tosh Strader, Tim Kunkle. [5] Jon Hanson, Britt Inman, Ken Sartin. [6] Kimberly Jacob, Ross Dill, Darrin Sparks. [7] Tricia Hall, Craig Lukshin, Barbara Douglas. [8] Alison & Mark Korell. [9] Scott

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Building Products Digest May 2011

Stewart, Dave Awtry, Matt Landrum, Marshall Owens. [10] Steven Rogers, Dorothy & Ben Calvary, Grant Vaughan. [11] Carter Smith, Cheryl Sparks, Ignacio Castillo, Chris Roberson, Jason Sanders, Chris McCollum. [12] Kenny Beauvais, Jerry Hinson, Kara Garner. [13] Nathan Sikes, Keith Haines, Colby Walker, Alex Ulrich. [14] Johnny Sanders, Bobby Tosh. [15] Royce Slaven, Robin Gardner. Building-Products.com

SFPA Photos by SFPA

SOUTHERN Forest Products Association’s recent spring meeting in New Orleans, La.: [1] Tom Fitzgerald, Mike Pastore, Gary Converse, Huck DeVenzio. [2] Joe Patton, Ryan Hilsinger. [3] Barry Johnson, Bruce Kicklighter. [4] Joe Kusar, Mark Richardson. [5] Vince Almond. [6] Bobby Jennings, Mark Junkins, Donnie Oney. [7] Tom Rice, Buddy Klumb. [8] Dennis Hardman, Kelly McCloskey, Pat Schleisman. [9] Richard Kleiner, Jeff Couvillion, Mayor Mac Watts, Digges Morgan. [10] Cees de Jager, Cathy Kaake. [11] Brian Hayson, Stewart O’Neill, Jeff Baumgartner. [12] Russell Richardson, Brandt Mitchell. [13] Courtney Robinson. [14] Lane Merchant, Gary Unger. [15] Richard Wallace, Rob Taylor. [16] John Rhea, William Almond. [17] David DeVries. [18] Patrick Harrigan, Bill Nocerino.

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May 2011 Building Products Digest

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Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o BPD. Names of advertisers using a box number cannot be released.

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Building Products Digest May 2011

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DATE Book

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

International Wood Markets Group – May 10, Global Wood Products Industry & Market Conference, Westin Bayshore Hotel, Vancouver, B.C.; (604) 801-5996; www.woodmarkets.com. National Hardware Show – May 10-12, Convention Center, Las Vegas, Nv.; (888) 425-9377; www.nationalhardwareshow.com.

North American Retail Hardware Assn. – May 10-12, convention, Bellagio, Las Vegas, Nv.; (317) 290-0338; www.nrha.org.

Paint & Decorating Retailers Association – May 10-12, annual show, Las Vegas, Nv.; (800) 737-0107; www.pdra.org. Northeastern Retail Lumber Association – May 11, regional board meetings, Rocky Hill, Ct., and Gouverneur, N.Y.; May 13, Bangor, Me.; (518) 286-1010; www.nrla.org. Northeastern Loggers Association – May 13-14, equipment expo, Bangor, Me; (800) 318-7561; www.northernlogger.com.

Peak Auctioneering – May 14, LBM auction, Indianapolis, In.; (800) 245-9690; www.peakauction.com.

American Wood Protection Assn. – May 15-17, annual meeting, Marriott Harbor Beach Resort, Fort Lauderdale, Fl.; (205) 7334077; www.awpa.com.

Northeastern Retail Lumber Association – May 19, regional board meetings, Hooksett, N.Y.; May 24, Newburgh, N.Y.; May 26, Rensselaer, N.Y.; (518) 286-1010; www.nrla.org. Peak Auctioneering – May 21, LBM auction, Metrolina Tradeshow Expo, Charlotte, N.C.; (800) 245-9690; www.peakauction.com.

Do It Best Corp. – May 21-23, spring market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

American Architectural Manufacturers Assn. – June 5-8, summer conference, Minneapolis, Mn.; (847) 303-5664; aamanet.org.

National Hardwood Lumber Association – June 5-9, hardwoods seminar, Memphis, Tn., and Pickwick, Tn.; (800) 933-0318; www.nhla.org.

Northwestern Lumber Association – June 7, golf outings, Otter Creek Golf Course, Ankeny, Ia.; June 9, York Country Club, York, Ne.; (763) 544-6822; www.nlassn.org.

Mid-America Lumbermens Assn. – June 10, Kansas Sunflower Shootout, Hutchison, Ks.; (800) 747-6529; www.themla.org.

Oklahoma Lumbermen’s Assn. – June 10-12, convention, Hard Rock Hotel & Casino, Tulsa, Ok.; (800) 444-1771; oklumber.org. National Retail Federation – June 13-15, loss prevention conference & expo, Dallas, Tx.; (800) 673-4692; www.nrf.com.

Virginia Tech – June 14, forest products marketing workshop, Charlottesville, Va.; (540) 231-0978; www.woodinnovation.org.

Kitchen Cabinet Manufacturers Assn. – May 15-18, convention, Barton Creek Resort, Austin, Tx.; (703) 264-1690; kcma.org.

National Lawn & Garden Show –June 14-16, , Rosemont, Il.; (888) 316-0226; www.nlgshow.com.

Green Contractors Expo – May 17-18, Convention Center, Las Vegas, Nv.; (800) 859-9247; www.greencontractorsexpo.com.

Forest Products Society – June 19-21, international convention, Doubletree, Portland, Or.; (608) 231-1361; www.forestprod.org.

Forest Products Society –May 16-18, wood & composites conference, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Massachusetts Retail Lumber Dealers Association – May 19, summer outing, Chatham, Ma.; (518) 286-1010; www.nrla.org.

United Hardware Distributing Co. – June 16-19, market, Minnneapolis, Mn.; (763) 557-2714; www.unitedhardware.com.

House-Hasson Hardware Co. – June 23-25, market, Cobb Galleria Center, Atlanta, Ga.; (800) 333-0520; www.househasson.com.

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Building-Products.com

May 2011 Building Products Digest

61

IDEA File

Offering free residential delivery—24 hours a day, seven days a week—is earning rave reviews for a hardware chain in San Francisco, Ca. “There are a myriad of reasons why shopping can be a hassle. We get it, and want to eliminate them,” says owner Rick Karp. “Our Rewards customers just have to tell us what they need.” Before the new service started in late March, store employees handled the weekend-only deliveries. But when more customers said they would prefer receiving orders during the week, Cole signed up with a company that specializes in 24/7 deliveries. Karp says that in urban areas off-hour deliveries are not unusual. “More people work from home or have other than 8-to-5 work schedules,” he says. And even though the service is available 24/7, he says most deliveries occur after 5 a.m. and before midnight. To get the ball rolling, customers call one of Cole’s four stores during regular business hours to place an order, $25 minimum. For anyone who’s not already a member of the rewards program, signup is free. “We wanted to keep the minimum at $25, just like Amazon, to build the awareness that retail stores can compete with online vendors,” he says. Larger orders help to offset the cost of delivering the smaller ones. “Services like this help us differentiate ourselves from other businesses,” says Karp. House Calls at Midnight

62

Building Products Digest May 2011

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

Advantage Trim & Lumber [www.advantagelumber.com]..........55 AERT [www.aertinc.com] ....................................................Cover IV Ainsworth [www.ainsworthengineered.com] .........................26-27 Anthony Forest Products [www.anthonyforest.com] .................25

Biewer Lumber [www.biewerselect.com].......................................3 Boise Cascade [www.bcewp.com]................................................13

Building Materials Alliance [www.siberwood.com].....................24 Cabot [www.cabotfactoryfinish.com]..................................Cover II Capital [www.capital-lumber.com]................................................51 Cedar Creek Wholesale [www.cedarcreek.com] ........................59 Chicago Suburban Lumber Sales [chicagosurburban.com]......47 Crumpler Plastic Pipe [www.cpp-pipe.com] ................................62 Distribution Management Systems [www.dmsi.com] .................50 Elder Wood Preserving [www.elderwoodpreserving.com] ........28 Enduris [www.enduris.com] ..........................................................35

Fasco America [www.fascoamerica.com]....................................22 Fiberon LLC [www.fiberondecking.com] .....................................21 Forest2Market [www.forest2market.com] ....................................45 Great Southern Wood Preserving [www.yellawood.com] ............7 GRK Fasteners [www.grkfasteners.com].....................................54 Guardian Building Products [www.guardianbp.com] .................19 Hood Industries [www.hoodindustries.com] ...............................41 Hoover Treated Wood Products [www.frtw.com]........................61 Kebony [www.kebony.com]...........................................................23 Kleer Lumber [www.kleerlumber.com].........................................31 Krauter Solutions [www.krauter-storage.com]............................38 LTG Inc. [lbrtimber.com]................................................................47 LWO Corp. [www.lwocorp.com]....................................................49 Mary’s River Lumber [www.marysriverlumber.com] ..................43 Master Mark Plastics [www.rhinodeck.com]................................55 McFarland Cascade [www.mcfarlandcascade.com] ...................17 Neiman Enterprises [www.neimanenterprises.com]...................44 Nordic Engineered Wood Products [www.nordicewp.com].......33 North American Wholesale Lumber Association [nawla.org] ....52 Northeastern Lumber Manufacturers Assn. [www.nelma.org]...48 Pacific MDF Products [www.pactrim.com] .................................20 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....39 PPG Industries [www.ppg.com] ....................................................37 Redwood Empire [www.redwoodemp.com] ........................Cover I RISI [www.risiinfo.com/crows] ......................................................46 Selkirk [www.selkirkcedar.com]....................................................49 Simpson Strong-Tie [www.strongtie.com].........................Cover III Sunbelt [www.sunbeltracks.com] .................................................51 Sure Drive USA [www.suredrive.com]............................................4 TAMKO Building Products [www.evergrain.com] .........................5 Trinity Forest Industries [trinityforest.com].................................48 Universal Fastener Outsourcing [www.911-nails.com] ................4 Wahoo Decks [www.wahoodecks.com] .......................................53 Western Forest Products [www.westernforest.com] ..................41 Western Red Cedar Lumber Association [www.wrcla.org] ........49 Building-Products.com

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Š 2011

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BPD

Building Products Digest

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