MERCHANT
90TH ANNIVERSARY ISSUE HIGH-TECH TREATED WOOD APA ON EWP
The
JULY 2012
Magazine
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The
MERCHANT
Special Features 9 RETROSPECTIVE THE MERCHANT AT 90
10 FEATURE STORY IS NANOTECHNOLOGY THE NEXT FRONT IN WOOD PRESERVING?
14 MANAGEMENT TIPS GIVE YOUR RACKS REGULAR CHECK-UPS
17 MASTERING LEADERSHIP CHECKLIST TO ENSURE YOU’RE RECEIVING GREAT COACHING
28 SPECIAL FOCUS APA ON ENGINEERED WOOD– 13-PAGE SPECIAL SECTION, INCLUDING EWP FORECAST, APA UPDATE, ADVANCED FRAMING TECHNIQUES, CURVED GLULAMS, SAFETY LEADERS
Magazine
In Every Issue 6 TOTALLY RANDOM 12 COMPETITIVE INTELLIGENCE 16 OLSEN ON SALES 20 GREEN RETAILING 36 MOVERS & SHAKERS 38 FAMILY BUSINESS 41 IN MEMORIAM 42 NEW PRODUCTS 47 ASSOCIATION UPDATE 48 CLASSIFIED MARKETPLACE 49 DATE BOOK 50 IDEA FILE 50 ADVERTISERS INDEX TREATERS
July 2012
Volume 91 Number 1
Online BREAKING INDUSTRY NEWS, INDUSTRY PHOTO DOWNLOADS, & THE MERCHANT: DIGITAL VERSION BUILDING-PRODUCTS.COM
CHANGE OF ADDRESS Send address label from recent issue if possible, new address and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2012 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.
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The Merchant Magazine July 2012
Building-Products.com
TOTALLY Random By Alan Oakes
A
The (guilty) pleasures of traveling
S I WAS JUST ABOUT to leave for vacation, I read an ad we have running in our classified section about a “Road Warrior” and realized just how much I, too, enjoy traveling, and how much I could not do without it as part of my life. Whether for business or pleasure, I love to travel. I love the stimulation, the new sites and sounds, hotel rooms (sans cockroaches), different food, and seeing how other people live. I love meeting customers and hearing what they think and how they think. The thought of landing in a far-off place where I do not understand a word, where there are no signs in English, roads with no lanes, and general chaos doesn’t scare me, it stimulates me. The excitement of packing my bag and the expectation as I leave the house is still there after all these years. The one rule I created for myself many years ago was that if you have to do it, you better enjoy it! In my prior business life, I would spend 40% to 50% of my days traveling, and it became a way of life. A different day, a different city is an opportunity to learn something new. It may be in the U.S. or Canada, India, Hong Kong, or… This lifestyle is not for everyone, but it has helped to define me. Yes, we’ve seen Willy Loman in Death of a Salesman and, more recently, George Clooney in Up in the Air, both sad in many ways (although I would not mind being more like George…). When I share my upcoming travel plans, many tell me that they don’t know how I do it, or that they would not want to do it. But I enjoy nothing more than heading off with my suitcase, even when it is a 4 a.m. start. From my first international travel as part of a school trip at the age of 12 to France and Switzerland, I became fascinated with local life domestic and international. When I left school, I went into sales because I knew it would get me traveling, enjoying new experiences, and unchaining me from a desk. In those days, I thought nothing of driving 300 miles a day, day after day. Since 1968, my life has been constantly on the road both for business and pleasure. Those off-site sales meetings and management meetings were my guilty pleasure—having fun and enjoying the camaraderie. I even count much of my business travel as personal travel as I enjoy one as much as the other. I may have worked hard all day, but I love to walk and enjoy a new city at night by visiting galleries, cafes, and finding ways to blend in with locals. Sure, I’ve had catastrophes (my business trip to India in the 1990s is worth a movie in its own right), but I love to land somewhere and try to find my way and start a new adventure. I have been sick, landed in a hospital, had my money stolen, lost my luggage, and at times have been desperate to return to my own bed, but I still have the travel bug. Whether here in the U.S. or abroad, I have gathered experiences I would not trade for anything: watching the sun rise and set in distant cities, eating in a cafe overlooking an illuminated monument, turning the corner and seeing a piece of history thousands of years old and wondering how they could possibly build those small hilltop villages or giant pyramids. I have met the most fascinating people at all ends of the spectrum, from business celebrities to film stars to politicians (okay, that part I’m stretching) to simple folk on their pilgrimage or trying to eke out a living. I have stayed in some crummy hotels and in some of the best. I have eaten poorly and have eaten well. My planes has been hit by lightning and wind shear, and I have had one or two scary moments, but still give me a ticket and I am off. And, yes, I love those frequent flier miles and the perks that go with them. I find great pleasure in trying to find ways to buck the system, finding the best deals, getting an upgrade or a free breakfast. And, yes, I don’t enjoy being scrunched up on a commuter jet, or being stranded for hours or days in an airport, but these types of stories give me memories to talk about for years. In business I learn far more getting out of the office than I ever could sitting in the office. While I like hearing how good our publications are, I also appreciate learning from disappointed customers and field reps what we could do better. Face to face gives no one a place to hide. I use my travels to probably meet 50% of my future customers and to save a few customers, too! So as I head out—only to return by the time you read this—I hope you will get a chance to travel over the summer with your families and enjoy travel the way my family does. I have learned that travel lets me escape from the normal crazy. And nothing can be better. Bon voyage!
Alan Oakes, Publisher ajoakes@aol.com
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The Merchant Magazine July 2012
The
MERCHANT
Magazine
www.building-products.com
A publication of Cutler Publishing
4500 Campus Dr., Ste. 480, Newport Beach, CA 92660
Publisher Alan Oakes ajoakes@aol.com
Publisher Emeritus David Cutler
Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com
Contributing Editors Dwight Curran, Carla Waldemar, James Olsen, Jay Tompt, Mike Dandridge 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
How to Advertise
Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com
Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com
CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com
How to Subscribe
SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50
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Building-Products.com
RETROspective 90th Anniversary of The Merchant Magazine
90 years of The Merchant
T
anniversary of The Merchant Magazine, we look back at our first 90 years: July 1, 1922 • Jack Dionne, editor O COMMEMORATE THE
and publisher of The Gulf Coast Lumberman, publishes the first biweekly issue of The California Lumber Merchant, the original name
INAUGURAL ISSUE, July 1922.
for The Merchant Magazine. Volume one, number one features a classic Dionne editorial, industry and personnel news, merchandising features from companies such as E.L. Bruce Co. (today’s Bruce Hardwood Floors). Subscription price : $2 a year.
July 1, 1925 • With the magazine really catching on, this issue runs a record 162 pages, including some fullcolor ads.
July 1, 1935 • Reflecting the tough times, issues are temporarily scaled back to 24 pages after running 28 pages per issue for most of the Great Depression.
July 1, 1942 • A regular “Honor Roll of Lumbermen in the Armed Services” is instituted. And in honor
FOUNDER Jack Dionne’s first editorial is as pertinent now as the day it was first published in 1922.
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The Merchant Magazine July 2012
BIGGEST ISSUE, July 1925. Building-Products.com
of the magazine’s 20th anniversary, the “Ten Years Ago Today” column is renamed “20 Years Ago.”
January 1, 1951 • The subscription price skyrockets to $3 for 24 biweekly issues.
October 1, 1954 • The first New Products section profiles a number of interesting products, literature and sales aids, including an amazing new floor wax. January 1963 • After 40 years as a biweekly, the magazine goes monthly.
August 1963 • Well known California lumberman A.D. Bell Jr. succeeds Dionne as publisher.
October 1966 • The California Lumber Merchant becomes The Western Lumber & Building Materials Merchant, reflecting its expanded coverage of other products and reach to all 13 states.
THE FAMILIAR block logo of The Merchant first appeared in 1966, during a 10-year phase with a longer name.
July 1975 • The magazine realizes its name is too long after readers keep calling it everything from The Western Lumber Machine and Lumber & Druggist to The Western Lover Merchant. It’s shortened to its longtime nickname, The Merchant Magazine.
THE WAR EFFORT was a huge consumer of lumber during WWII.
October 1975 Editor David Cutler, who joined the company in 1962, succeeds Bell as publisher.
July 1978 • The first personnel change—Beau Dayshus —is made at Mungus-Fungus Forest Products, Climax, Nv., and The Merchant Magazine is there to report it.
March 1982 • The Merchant comes full circle by inspiring a sister publication, Building Products Digest, which initially concentrated on the same 13 southern state territory as the old Gulf Coast Lumberman. December 1993 • First pull-out, wall-hanging Deluxe Industry Calendar of Events. October 1998 • First Traders Preview for NAWLA Traders Market.
April 2001 • New publisher Alan Oakes replaces retiring David Cutler.
June 2004 • First “Competitive Intelligence” dealer profile by columnist Carla Waldemar. She’s currently at 98 and counting.
May 2006 • Relaunch of The Merchant’s website, Building-Products.com
February 2007 • First “Olsen on Sales” column by James Olsen. He’s recently compiled the 55 best into a new book—An Unfair Fight: How Winners Sell & Sellers Win. Building-Products.com
AS A TESTAMENT to the integrity of the lumber industry, Koll Lumber Los Angeles, Ca., sent in this letter and a check for $493.05 as backpayment for ads he placed in The Merchant 30 years prior. July 2012 The Merchant Magazine
9
FEATURE Story Pressure Treated Wood
Is nanotechnology the next front in wood preserving?
N
of wood pressure treated with micronized wood preservatives, researchers are experimenting with even smaller “nanotech” particles, to further prevent leaching. A team of Michigan Technological University scientists is preparing to reveal their findings, following a fiveyear study of nanotechnology in wood preservation. “It’s a new method that uses nanoparticles to deliver preservatives OTING THE POPULARITY
into the lumber,” said chemistry professor Patricia Heiden. “In our experiments, it reduced the leaching of biocides by 90%.” The nanoparticles are tiny spheres of gelatin or chitosan (a material found in the shells of shrimp and other shellfish) chemically modified to surround the fungicide tebuconazole. The little spheres require no special handling. “You just pressure-treat the wood in the usual way,” Heiden said. “We
SCANNING electron microscope shows the interior section of a nanoparticle-treated field stake. The small white spheres are the numerous chitosan/methyl methacrylate nanoparticles inside the wood.
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The Merchant Magazine July 2012
used tebuconazole as an organic preservative—donated by Lanxess Corp., Pittsburgh, Pa.—and copper oxide nanoparticles we made ourselves as an inorganic preservative. Our main goal was to study how we could reduce the leaching.” The initial tests show that nanoparticle-treated wood is just as resistant to rot and insects as conventionally treated lumber. The researchers have now moved their tests from the confines of MTU to the warm, wet weather of Hawaii. “Most of the work is already done, but we are testing a few other things out of curiosity,” Heiden said. The research is funded by the U.S. Environmental Protection Agency, under the program name “Environmentally Benign Manufacturing & Processing 2005GO-A1.” The preliminary study was completed last year and one group of findings has been published so far, with several more in the offing. The researchers had completed similar studies before, using petroleum-based components and dilute conditions. “We used gelatin and chitosan (biopolymers) and methyl methacrylate (MMA, which is petroleum based and is used to make plexiglass),” Heiden explained. “We made the nanoparticle in water by a simple combination of gelatin or chitosan with methyl methacrylate, an initiator, Building-Products.com
and the tebuconazole biocide and heated for a few hours. We then isolated the nanoparticles or diluted to the appropriate volume to treat the wood. We found that these nanoparticles reduced the leaching by 90% or so, and were effective in soil jar studies. We have treated field stakes to make sure we could penetrate wood completely, but did not do field studies.” MTU scientists initially tried to use some commercial copper-based preservative systems, according to Heiden, “but they were highly formulated and we did not always know with what, so we made a simple ‘inhouse’ ACQ system and also a simple copper oxide nanoparticle, made in a solution method rather than by any sort of a mechanical reduction system of copper carbonate.” She found the results “rather surprising,” saying that the nature of the copper oxide surfaces influenced how much the nanoparticles leached and promising to share further information in the coming months. Here’s what she can divulge: “The organic nanoparticles definitely reduce leaching of organic biocide, and the reduction is substantial compared to a straight solution or emulsion treatment of organic biocide, even without the use of a surfactant. In our work, we found that the use of a chitosan shell did not reduce the leaching of copper oxide nanoparticles.” John Lounsbury, managing editor and co-founder of Global Economic Intersection, speculates that the new technology could result in preservatives that are both more effective and more affordable. Current preservatives for residential use, says Lounsbury, “are much more expensive than the older most common compound used before 2004 (CCA), so manufacturers try to use less of it. That leads to at least 12 different grades of treated wood product today and makes choosing the correct wood for each application a process that requires greater care.” So while he optimistically has his “fingers crossed” about the viability of nanotechnology, questions remain: “How expensive is the nanotech process?” he asks. “Does the reduced leaching mean that much less of the expensive treatment chemicals can be used? And, can nanotech processing mean that more toxic chemicals that have been phased out—or never Building-Products.com
July 2012 The Merchant Magazine
11
COMPETITIVE Intelligence By Carla Waldemar
Downsize? Heck, no. Expand!
J
S HORT is making lemonade. When the economy turned sour a few years back, the president/c.e.o. of Tifton, Ga.-based Short & Paulk Supply Co. didn’t waste time in wringing hands. “Sure, it’s bad,” he acknowledged, then moved on. “Focus on things you can control. Find something that works. We’re aggressively trying to grow, looking for opportunities.” He professes: “When things slow down, you’ve got two choices. You can considerably downsize your business or you can find sales to keep it going. Study the numbers, the demographics…” AY
And then, open a new store. May 4 was the grand opening of the new Dawson, Ga., location, after S&P purchased and remodeled a former hardware store as its fourth location. It joins Albany (where Jay picked up a closed yard in 2010), Sylvester (launched by his father in 1985), and headquarters in Tifton, as well as a truss plant and door manufacturing plant. Now well into its third generation—Jay joined his dad and grandfather in 1989 after graduating from the U. of Georgia and bought his dad out in 2008—the operation originated in 1941 with three employees. Back then,
SHORT & PAULK Supply cut an I-joist May 4 to celebrate the opening of its newest location in Dawson, Ga.
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The Merchant Magazine July 2012
its phone number was 97. Today Jay Short V signs paychecks for 55 coworkers and the phone line (10 digits) takes a back seat to the Internet. But what hasn’t changed is the philosophy instilled by Jay’s grandfather, which Jay recites: “Sell good products, unite with good, accountable suppliers, and treat folks right. If you do that, they’ll come back. We focus on imparting that to our employees— to do what we say we’ll do, at a competitive price and with top-notch staff. If there’s a problem, it’s an opportunity for us to solve it.” Each location serves a slightly different market. Dawson, set amid farmers’ fields, is unique in carrying feed and seed. Albany’s larger footprint of rental units sends S&P a hunk of commercial repair business. Sylvester, a small, rural town, carries “just about everything, including coffeemakers,” laughs Jay, while Tipton focuses on the new home and remodeling slice of the pie. Meanwhile, the truss plant, established in the early ’70s in Tifton, supplies all four stores, plus other independent dealers beyond a radius that deflects competition. The door operation, relaunched with new equipment in 2008, “is mainly for our customers,” Jay explains—“a low-volume shop that gives us control over the quality of the work and a quicker turnaround time. Before, when we dealt with special orders, a six-panel door, with one available hardware style and one style of moulding, took two to five days to reach us. Now, it’s a dayand-a-half turnaround, with six different frames, four or five different hardware options, and 10 to 15 door panels. There are some cost savings, too. And, with the trusses, we can offer one-stop shopping. “We’ve always concentrated on new construction, and, 10 years ago, it was going at a really good clip. Now, we’re going after other avenues: institutions—schools, hospitals; commercial, like the apartment market; the remodeler, and the d-i-y folks. And each of our locations has something a little different to offer.” Add it all up, and you arrive at S&P’s potential customer base, which Jay defines as “anyone alive and breathing with a good credit record.” To go after the remodeler, S&P has reset its inventories and showrooms. (They’ve recently changed to affiliate with Orgill.) “To keep moving positively, we market to new homeowners, Building-Products.com
THIRD-GENERATION owner Jay Short V is flanked by sons J.P. VI (left), a high school senior, and Jackson (right), his 14-year-old marketing guru.
SHEATHING rolls out of S&P’s headquarters yard in Tifton, Ga.
calls Living Smart. “I find so much conflicting information, so much uncertainty and ‘greenwashing.’” Thus, he’s chosen the middle road, aka “helping the customer live better”—light bulbs, air filters. “You might not replace all your windows, but there’s weatherstripping, insulation” and the 40-gallon challenge he spotlights on talk shows. The new Dawson store fits the conservation mode. “The existing store had a lot of opportunity to it. It’s in a growing area we already serve, 20 miles from Albany. It could be the feeder store down the road—location, size, everything. What we did is, open it as a pick-up yard, with a pick-up truck. If it sells a roofing job, they’ll get a delivery from Albany. But it can also save builders from running 20 miles for a couple of 2x4s. At our grand opening,” he chuckles, “we didn’t cut a ribbon. That’s for jewelry stores. We cut through a 11-7/8-in. joist with a chainsaw!” In these trying times, efficiencies have kicked in all across the board. “We’re working at 110, 120%, and we all change hats every 30 minutes,” he laughs (sort of). “You learn how to do with a lot less.” The results from the new marketing push are in: “One-third of last year’s business came from clients we didn’t even have three years ago. You try to grow, but very carefully. And,” he underscores,” we’re growing!” Carla Waldemar cwaldemar@comcast.net
not only builders,” Jay says. “We want to get our name out to young couples, to have them think of our store first— have an opportunity to show them new products and prove we have quality people. If we get the opportunity to take on a little project, do that little repair—if we take care of that now, do the job right, then we’ll build a customer. And five years down the road, when things have turned around and they build a house, they’ll think of us.” And how to reach these 20-somethings? Social media, duh! Sure, TV and print ads, but more to the point, YouTube videos, Facebook and Twitter messages, blogs, web offers and instruction. “I do a lot of the marketing myself,” says Jay, who appears on talk shows and You Tube features, “but I’ve got a 14-year-old marketing manager who’s very good with computers.” Happens to be his son, Jackson. “Our philosophy hasn’t changed, but technology helps us do it better—for instance, inventory control and dispatching,” Jay continues. “It makes us more efficient, but still in tune with my grandfather’s ideals: Make sure you greet people, stay on top of them. We have a crew in the front of the store for the retail trade, and salesmen in the back office to assist builders. We sell the same commodities as everybody else, but the difference is, we do what we say we’ll do. We really, really focus on service. Plus, we just joined LMC, whose buying power allows us to offer better pricing.” What about the touted green market? Jay Short prefers to take a practical approach. Rather than jumping on the bandwagon of hype, he opts to offer selected services S&P Building-Products.com
July 2012 The Merchant Magazine
13
MANAGEMENT Tips Rack Safety
Give your lumber racks regular check-ups
support some loads, but possibly not the maximum design load.
• Make sure the racks are being used as intended. Are loads properly positioned? Are loads exceeding the designed weight? Is the rack designed to accommodate that type of product? In a lumberyard or warehouse, information as to how much a load weighs is not always immediately available. One way to detect overloading is by measuring the amount of beam deflection present. All load beams will and are allowed to deflect, or sag, a certain amount. According to the Rack Manufacturers Institute, a roll-formed beam has an allowable deflection of the length of the beam divided by 180 (i.e., a 10-ft. beam would have an allowable deflection of two-thirds of an inch). If the deflection is greater, the beam has been overloaded.
R
REGULARLY review all racking for signs of damage and deterioration or for improper loads.
should be a primary concern at all lumberyards and home center warehouses. FBS Group, Chicago, Il., which provides rack protection products and conducts rack safety inspections, suggests regularly reviewing your racking for signs of damage or deterioration. Inspections should include: ACK SAFETY
• Look for signs that the rack’s structural integrity has been compromised. Lumber racks, like any other structures, depend on their form for their structural integrity. Once their form is compromised, their load-carrying capacity decreases. And once a rack member deteriorates, it may no longer carry its rated load. Most rack damage occurs gradually. It’s easy to spot and recognize the need to repair, say, a frame leg that has been struck so forcefully that it’s now bent to the point it’s no longer touching the ground. Less obvious, but perhaps equally in need of repair, is the frame or beam that has been banged into repeatedly for months or years and appears “merely” dented. It may still
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The Merchant Magazine July 2012
• Identify any loose, missing or damaged fasteners. Forklift impact can shear off anchor bolts or disengage load locks, snap locks, and other locking devices designed to prevent beam end plates from being lifted up and separating from the slots in the column.
• Ensure accessories are not missing or damaged. Accessories such as wall ties, cross bars, wire mesh decks, pallet stops, corner guards, and other impact protectors are usually installed to protect the rack structure or enhance safety.
• Pay special attention to any modifications to the original rack structure. The primary areas of concern are non-engineered additions that introduce loads to or change the original structural design of the rack system. In particular, welding anything to a rack, even if the addition seems to be of inconsequential weight, can drastically affect the member it is welded to. And, the weld itself can also be a problem. If columns have been repaired, make sure the kits were installed properly. FBS inspectors have observed column repair kits installed without a splice cuff, with all or parts of the backer column removed, and lacking the specified weld per the manufacturers specifications. Building-Products.com
OLSEN On Sales By James Olsen
Proper care and feeding of your sales force “W
E’VE GIVEN OUR sales team all the tools they need to succeed. All they need to do now is go out and sell.” I’ve heard a version of this statement from many managers. These same managers are disappointed in their team’s results. There’s an Egyptian saying: “Giving friendship to a man who is looking for love is like giving a loaf of bread to a man who is dying of thirst.” Giving merely “tools” to your team is the same thing. Salespeople need tools, yes, but what they need more than tools is attention. Your sales team cannot pay attention to itself. That’s your job. Telling them what to do and walking away is not management and will not deliver the kind of results you want. If you want extraordinary results from your team, you will have to give them extraordinary attention (and caring).
Respect or Cogs?
Some managers have the attitude (sometimes even voiced aloud): “You’re lucky to have a job.” If you say this to any good salesperson, you are saying “#*@% you” in their head and they will start to look somewhere else immediately, if not sooner. They definitely will underperform and passively or actively resist all company (and specifically your) initiatives. “They want us to be smart enough to find new business, negotiate with crafty customers, solve claims without giving away the farm or losing the customer, and make a profit, but they don’t want us to be smart enough to know when they are trying to slip one by us.” This is a quote from a disgruntled salesperson who was getting jerked around on her commissions. Salespeople are not factory workers. They are profitmaking partners in your business. If you treat them like
cogs in your wheel, you will self-select for low-performing cogs in the wheel because all self-loving salespeople (who are always the best) will leave your organization. Treat your sales team the way you want them to treat their customers. If you want them to give their customers their all, you will have to give them your all. Spouses & Children. Do you know anything about your team members’ families? What kind of support do they get at home? Show a genuine interest. If you have a good relationship with your team member’s family, you will have more (positive) influence on that salesperson. Making your team’s families feel like “part of it” will also create more loyalty. Company bowling nights, picnics, holiday parties are all easy and effective ways to bring your team together—but you must be present and active at these events. You are not an “event planner.” You are a leader who makes individuals feel your presence. Lunch. There are approximately 22 working days in each month. That’s 22 lunches you can have with individual salespeople. These are not “business” lunches. This is not a review of their progress at work. Talk about everything but work—make a point of it. And talk about what your salesperson wants to talk about—just like we would with a customer. Weird, huh? Contests. Salespeople love to compete. Go as heavy on contests as you can. Salesman of the morning, day, month, year, department. Top new salesman. Make sales teams for contests. Make teams matching your top guy with your bottom guy and on down the line to create camaraderie. Love & Favoritism. UCLA’s John Wooden struggled for years with the fact that he liked some players more than others. He didn’t want to play favorites, but knew in his heart how he felt. His initial philosophy was, “I may not like them all the same, but I treat them all the same.” He was still uneasy. Years later, he hit on a better philosophy: “I don’t like them all the same, but I love them all the same.” Great managers have this attitude. Who they like has nothing to do with it. They give attention, caring and love to all team members and get world-class results in return. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com
MASTERING Leadership By Gregg Thompson
Are you receiving great leadership coaching?
Y
OU KNOW YOU ARE
when…
getting great leadership coaching
1. … you are in the pit of despair. Many of your basic beliefs and assumptions about your role as a leader have been challenged, and you feel like you are losing your footing. You are seriously questioning your career to date and your personal aspirations.
2. … you are really excited about the future. You don’t know what the next chapter of your leadership career is going to look like, but you do know that there is no going back now. Something new and fresh awaits you. 3. … you are angry, frustrated and ready to fire your coach. None of your expectations for great pieces of advice and insights have been met. All you get are annoying ques-
tions like, “What will happen if your performance as a leader does not change?” and even more annoying statements such as, “I think you are much better than this.”
4. … you are feeling a little sheepish. Your coach has called you on the many ways you sell yourself short or get in your own way, and you have just realized you have been blaming others in the organization for holding you back when, in reality, most of your limitations have been selfimposed. 5. … you have a renewed excitement about yourself as a leader. You have just realized that there is a huge gap Building-Products.com
between the leader you are and the leader you can be. You’ve taken stock of your talents and strengths, and realized that you can have an enormous, lasting impact on your organization and the people in it. Very cool!
6. … you are shaken by some sharp, gut-wrenching feedback. It’s getting tougher to dismiss this feedback as the product of people who simply don’t understand you or who have ulterior motives. What if this is actually true? What if I am wrong?
7 . … you are feeling energized and powerful. No longer a victim of organizational circumstances, you now have options and alternatives. You are committed to making your own choices and crafting your own leadership story. Wow!
8. … your personal life has become brighter. You now show up to your friends and family as a kind, caring and patient person who sees the very best in them and continually seeks out ways to serve them. You have realized that you can only be the best possible leader at work by being the best possible person at home.
9. … you have stopped wasting your precious time and energy. You have embraced your emotions and become their master, not their slave. You have ceased to burn emotional energy reacting to organizational issues that you cannot influence and people you cannot control. You have developed an inner muscle that gives you the strength to choose your own best leadership actions and reactions. 10 . … remarkably, the people around you have changed for the better. Somehow, the under-performers, sloths and misfits that used to be ever-present are now gone and have been replaced with wonderfully creative and highlyengaged teammates. Interesting!
Gregg Thompson Bluepoint Leadership Development (513) 683-4702 greggthompson@bluepointleadership.com
July 2012 The Merchant Magazine
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75-Year-Old Northern California Dealer Closes
DeCou Lumber Co., Atascadero, Ca., filed for bankruptcy June 5 and will close after a liquidation sale is complete. The company owed about $1 million to Mission Community Bank and an additional $300,000 in merchandise was not paid for. “Some people have been shopping here for 40 and 50 years, and they’re devastated,” said president Jay DeCou, whose family purchased the business in 1937. DeCou said that the market doesn’t carry the demand it once did, and competition with national retailers and online suppliers has been tough. “I’ve lost hundreds of thousands of dollars in lumber sales to the Internet,” he added, noting that online outlets can offer cheaper prices because there is no sales tax.
BMD Buys Fastener Firms
Building Material Distributors, Galt, Ca., has acquired Master Fasteners International, Long Beach, Ca., and sister company Fastener Source, importer/wholesalers of fine wire and pneumatic fasteners with a DC in Memphis, Tn.
BMD will be merging Fastener Source under the Master Fasteners International name, and will operate the company as a wholly owned subsidiary of BMD. “We believe that Master Fasteners’ proven capabilities in the fastener market align very well with BMD’s strategy and enhance our ability to drive value in the channel by making our customers and suppliers more successful,” said BMD president/c.e.o. Jeffrey Gore. “Master Fasteners adds to our already significant capabilities in this product line, with a depth of technical expertise and strong channel partnerships that clearly open up new markets and opportunities.” BMD operates DCs in Stockton, Riverside, Eureka and Visalia, Ca.; Colorado Springs, Co., and Santa Fe/ Albuquerque, N.M.
Historic Yard For Sale
The family that owns Mill Valley Lumber, Mill Valley, Ca., has put the 120-year-old business up for sale for $1.8 million. “As a family, we’ve decided that it’s time to have closure and end on a high note instead of putting more money into this business and never
seeing it back,” said general manager Dan Cerri, who has owned and operated the business for 14 years with his father, Tom, and his brother, Tony. “We’re trying to find someone who can buy it and maintain it as a lumberyard, to continue its history.” As the sixth owners, the Cerris had anticipated passing the family business on to the next generation, but the recession erased that hope.
DEALER Briefs
Colonial Lumber, San Mateo, Ca., is closing with the retirement of owner Jim Baly. His grandfather, Hal Baly, co-founded the company in 1953.
Builder’s Surplus Northwest has opened in Chehalis, Wa. (Larry Ledl, mgr.).
Hoyt Lumber closed its Upland, Ca., yard June 1, but continues in Rancho Cucamonga, Ca. The Upland yard, opened in 1929 by Rugg Lumber, was acquired by Hoyt in 1996.
Old West Lumber , Choteau, Mt., held a grand re-opening June 8 to show off its extensive remodel. The renovation doubled the size of its showroom to more than 2,400 sq. ft. and expanded inventory, courtesy of
Orgill Hardware.
DOMESTIC SALES: Jerry Long, Michael Parrella, Janet Pimentel, Pete Ulloa, George Parden, Vince Galloway, Chris Hexberg, Matt Wright, Bert McKee, Joe McCarron. INTERNATIONAL SALES: Nestor Pimentel.
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Scarborough Home Center, Scotts Valley, Ca., late this summer will open two 4,200-sq. ft. Carmel Ace Hardware stores in the same Carmel, Ca., shopping center—one focusing on hardware, the second on home & garden, outdoor living, outdoor power equipment, and patio furniture. Orchard Supply Hardware, San Jose, Ca., plans to expand beyond California to the Pacific Northwest in 2013. ProBuild Holdings cut 127 positions at its Denver, Co., headquarters, primarily in the finance, marketing and human resources departments.
Anniversaries: Dunn Lumber , Seattle, Wa., 105th … Mead Clark Lumber, Santa Rosa, Ca., 100th … Wholesale Builders Supply , Las Vegas, Nv., 40th … Escondido Building Materials , Escondido, Ca., 35th … Barrelhead Building Supply, South Beach, Or., 35th … Building-Products.com
GREEN Retailing By Jay Tompt
Compliance or leadership?
S
TARTING FROM A CLEAN slate confers all sorts of benefits. For new merchants, those just starting up (a rare breed, I know), it’s relatively easy to develop a green business model and brand, stock only greenest-in-class products, and forge winning customer relationships with green builders and remodelers. For those saddled with the baggage of history, existing customer and supplier relationships, and predictable revenue streams, it’s a different story. How do you green your product lines and bring your existing customers with you, while appealing to a new breed with rising green expectations? We’ve been dealing with these questions in this column for the last several years. Based on personal experience, as well as observations of what has worked for others, we’ve drawn the conclusion that any merchant can become a green merchant and, inevitably, every merchant must. But it is a difficult journey fraught with many compromises. The recent kerfuffle over a new credit category proposed for the latest incarnation of LEED 4 highlights one of the trickiest. First, the kerfuffle. Without getting too bogged down in technical detail, the main issue is the proposed “Avoidance of Chemicals of Concern” credit, which aims to raise the bar on indoor air quality by eliminating certain chemicals in emitting products and that certain products include disclosure of chemicals used. In one part of the proposal it references REACH, an European Union program that monitors chemicals. The American Coatings Association took exception in widely publicized comments it submitted to U.S. Green Building Council, arguing that compliance would hurt the market. They suggested an alternative, compliance with 2007 California Air Resources Board Suggested Control Measure. Even 61 members of Congress got involved. There are two points to be made here. First, let’s recall some recent compliance history. There were a few industry leaders who saw new CARB regulations coming in 2007, did nothing, and were forced to take back their non-compliant product from retailers’ shelves and distributors’ warehouses. Second, LEED does not require compliance. On the contrary, it aims to identify leadership—that’s what the “L” in LEED stands for—and more to the point, it is voluntary. No manufacturer is required to make, test, or certify
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products that meet LEED credits. This is an all important difference that separates compliers from leaders. For merchants trying to create a winning, green formula, being able to identify the difference between products and manufacturers aiming for compliance, and those focused on leadership, is crucially important. Who would hire a builder or an employee whose main selling point is compliance with minimum regulated standards? Don’t we all want to work with leaders who go beyond the minimum and set their own standard? Don’t we want to be leaders? But the unfortunate reality is that because of longstanding channel marketing practices, with manufacturer spiffs, promotional deals, brand or industry dominance, and so on, this is also an area where compromises are inevitable. And probably, there are long-term relationships involved, too, which can make it tricky. So, what to do? First, develop an understanding of current vendor relationships and identify the manufacturers with a commitment to continuous product improvement, innovation, and leadership. Second, start strengthening relationships with the leaders and collaborate on new programs wherever possible. Third, identify gaps and seek new greenest-in-class alternatives in every category. Fourth, engage those manufacturers in the compliance camp and encourage a change in their product development philosophy. You never know, they just might listen. Finally, develop a long term trend toward greenest-inclass products. It may be tricky to manage existing relationships and the short-term benefits they confer, but in the end, working with leaders delivers its own rewards. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com www.williamverde.com
Building-Products.com
SPECIAL Focus APA on Engineered Wood
State of Affairs
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Interview with APA president Dennis Hardman
PA–T HE E NGINEERED Wood Association president Dennis Hardman recently shared his views on the state of the industry and the association:
Q: It’s been a tough few years
for the structural wood panel and engineered wood products industry. What’s your assessment of the challenges facing the industry at this point? Hardman: Where do I start? Market demand, of course, is still the primary problem. North American structural wood panel production last year was 26.07 billion sq. ft. on a 3/8” basis. That was almost identical to 2010, and we’re still way below the 43 billion ft. at the peak of the housing market in 2005. So we have a long road of recovery ahead of us. There is also the ongoing challenge of safeguarding industry interests in codes and standards. Recently, for example, we’ve been working to gain fairer treatment of wood products in the International Energy Conservation Code. In addition, the industry faces numerous regulatory challenges, such as the Boiler MACT issue, ever more stringent formaldehyde emissions limits, growing green building requirements, among others. And there is the continuing federal timber supply problem in much of the West. So there’s no shortage of challenges.
Q: What’s the industry production forecast for this year and beyond? Are things looking up? Hardman: We’re now forecasting U.S. and Canadian plywood and OSB production to rise this year by about 1.9 billion sq. ft., and to continue to increase next year and beyond. By 22
The Merchant Magazine July 2012
2016, we expect U.S. and Canadian structural wood panel production to be back at around 37 billion sq. ft., or about a 40% increase from 2011.
Q: What about the other engineered wood products that APA represents? Hardman: Same thing. Glulam, wood I-joists, and laminated veneer lumber should all experience strengthening demand as the economy in general and the housing market in particular improve. Production of I-joists looks especially promising, almost doubling by 2016 from the 2011 volume.
Q : So, you’re expecting some improvement now in the housing market? Hardman: Yes, we believe we have hit or are very close to hitting the bottom of the market. We’re forecasting a 15% increase in U.S. housing starts this year compared with 2011. Looking farther ahead, we think U.S. single-family and multifamily starts could reach 1.4 million by 2016. The problem right now is the continuing high inventory of unsold existing homes, including the millions that are in foreclosure. We also need to see stabilization and then increases in home values in order to renew consumer confidence and investment.
Q: What about exports? Those have been strong, correct? Hardman: Yes. North American plywood and OSB exports, excluding shipments between the two countries, totaled 1.23 billion sq. ft. last year, the highest volume in 12 years. That’s been fueled by the weak domestic markets, which have made manufacturers here more aggressive in selling
overseas. As domestic demand improves, more of that product is likely to remain in North America, so exports are expected to slow. Conversely, imports have declined recently, but are likely to pick up again as the North American market improves and becomes more attractive to offshore producers.
Q : The industrial market is especially important to plywood manufacturers. How’s that market looking? Hardman: Solid. Demand in industrial markets declined by about 7% and 8%, respectively, in 2008 and 2009, but rose by 6% in 2010 and another 3% or so last year. We expect the rate of growth to remain at about 3% per year over the next several years.
Q: You cited regulatory matters as among other industry challenges, including energy codes. What’s the issue there? Hardman: That has to do with the International Energy Conservation Code, or IECC, which in late 2010 approved changes that in effect unfairly favor foam sheathing over structural wood panels. We did a study that indicated those changes could represent a potential U.S. market demand loss of approximately 905 million sq. ft. of structural wood panels. That’s almost 20% of the structural wood panel wall sheathing market. So it’s a big deal.
Q: How are you addressing that challenge? Hardman: We helped last year to establish an independent coalition of wood products industry manufacturers and associations, called the Coalition Building-Products.com
for Fair Energy Codes. It has a twofold purpose: first, to ensure that identified priority states adopt energy codes that allow for the continued use of cost-effective building envelope design options that include oriented strand board, plywood and lumber framing, and, second, to influence development of future energy codes, including the 2015 IECC, to ensure structural wood products and systems are appropriately regulated and not disadvantaged in their acceptance and use in the marketplace.
Q : What does the coalition do exactly? Hardman: It has several functions, including federal government-level education, monitoring and attempting to influence state energy codes and legislation, assembling technical data and information in support of credible energy code policy positions, establishing alliances with other industry partners and supports, and communicating key messages to stakeholder groups. I’m happy to report that our state efforts have been largely successful to date, but we still have a lot of work to do.
Building-Products.com
Q:
What are APA’s strategic priorities this year? Hardman: Our priorities are based on a strategic plan that has four chief goals as established by our board of trustees. The first is maintaining an independent certification program that assures member compliance with product and performance standards, and that also performs a leading role in setting industry standards. The second is protecting and growing wood product market share. The third is strengthening the voice of the industry through APA membership expansion and strategic partners. And finally, the fourth goal is exercising fiscal responsibility and maintaining organizational effectiveness.
Q: You mentioned membership expansion. Has APA’s membership been affected by the recession? Hardman: Actually, we’ve increased our membership quite substantially, with approximately 20 new member mills added to the ranks since 2009. Those are fairly evenly split between the U.S. and Canada, and represent most of the products for which APA provides services. During that same period, we have not lost a single
mill other than through closure. So we’re quite proud of that record. We consider it a remarkable statement of faith in the strategic direction and value proposition of APA during a period of extreme financial pressure on most wood product manufacturing companies. Our strong membership base positions APA very well for the eventual climb out of this down market.
Q: You also mentioned strategic partnerships. What are some of those and what are their purposes? Hardman: One of the longest standing examples is our participation in the USDA Foreign Agricultural Service cooperator program, which each provides sizeable grants in support of our international market development efforts. Another example is the Wood Products Council, of which APA is a charter member. The council administers a nonresidential construction market program, called WoodWorks, that is designed to increase wood product demand in that market. Still another example is the Canada Wood Group, an alliance of mostly Canadian wood products industry associations that coordinates funding
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for international market development projects sponsored by the Canadian and British Columbian governments. APA is a member of the Coalition for Advanced Wood Structures, a university, industry and government partnership whose mission is to identify and execute cooperative research and technology leading to improvement of wood structures. We also have a close relationship with industry suppliers through the Engineered Wood Technology Association, which is a related APA organization that serves as a networking and information exchange vehicle for manufacturers and suppliers. And also, as I mentioned, we participate in the Coalition for Fair Energy Codes in partnership with the American Wood Council. In fact, the day-to-day operations of CFEC are managed by an APA staff member, and APA provides program budget accounting and financial reporting services for the group. We also have longstanding relationships with the U.S. Forest Products Laboratory, American Wood Council, Green Building Strategy Group, Institute for Business and Home Safety, National Association of Home Builders,
Canadian Wood Council, American Forest & Paper Association, and FPInnovations in Canada, to name a few.
Q: With regard to organizational effectiveness, how has APA adjusted or responded to the budget constraints that you must have faced when the economy collapsed? Hardman: Well, like almost everyone else in this industry and throughout the country, we had to go through some painful staff and budget cuts, and then adjust our priorities in accordance with the most important needs of our members. That gave rise to the four-point strategic plan that I mentioned earlier. Obviously, quality certification is among the most important of those member needs, so we’ve devoted a lot of resources to making sure that we continue to operate the best quality certification program in the industry. I would add that the APA board continues to review incremental investment that would be necessary to restore APA functions and activities to some pre-recession baseline level, once conditions permit. That’s important to our being as prepared as possible to capitalize on market development and other strategic opportunities as the economy and market improve. Q : Speaking of the APA board of trustees, who serves on it? Hardman: The board is comprised of 15 executivelevel members who reflect the broad product mix, geographic range, and diverse size of APA member companies. We also have an APA member advisory committee system that is actively involved in formulating recommendations and developing program plans related to market development, technical services, quality services, glulam and Ijoist/LVL, mill safety, etc.
Q: Given the very difficult business conditions over the past few years, what APA accomplishments are you most proud of? Hardman: I’d have to say the strong member support that we’ve had during this period is certainly high on the list. That speaks, I think, to the dedication and expertise of the APA staff, and also to the excellent strategic guidance we’ve received from the APA board and advisory committees. I’m also proud that despite budget constraints, we have continued to refine and improve our quality certification services, and have remained a globally recognized leader in the standards promulgation arena. I think we have done a good job of protecting market share through a variety of highly targeted promotional programs. And I’m proud of the increased recognition within APA and among APA’s members of the importance of safety, although I really need to give credit there to former APA chairman and current APA trustee Jeff Wagner of LP, who is passionate on that subject. Jeff was the leading force in reorganizing the annual APA mill safety awards competition and in forming a new APA mill safety advisory committee.
APA PRESIDENT DENNIS HARDMAN
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Q: Finally, what’s the biggest lesson from the last few years of depressed markets? Hardman: Clearly, within APA, we’ve learned a lot about efficiencies and essential member values. As market demand improves, we will definitely apply those lessons to rebuilding. Building-Products.com
SPECIAL Focus APA on Engineered Wood
Structural panel and EWP demand to grow
T
HE SLOW - BUT - STEADY
improvement in the housing market is expected to boost demand for engineered wood products throughout 2012, according to estimates by APAThe Engineered Wood Association. U.S. housing starts are forecast to increase 15% in 2012 to 700,000 units. As a result, and for the first time in several years, all of the major end-use markets for wood products are expected to move in concert and
increase this year. In addition to growth in housing, demand is expected to grow in repair and remodeling, nonresidential building construction and industrial uses, as well as exports to Asia, Mexico and the Caribbean. “There is a little more life to engineered wood demand this year. Last year, we were just treading water,” said Craig Adair, APA’s market research director. “This year, we’re expecting demand to pick up from 4%
to 11%, depending on the product.” Although the Great Recession in the U.S. ended in mid-2009, the recovery has been uneven and only now is the U.S. economy showing signs of sustainable growth. Adair noted that single-family housing is still plagued with several obstacles, including banks that are reluctant to lend and more foreclosures on the way. Single-family construction is expected to improve in 2012, but it
Three Things I’ve Learned: Tips from Seasoned Pros
should have a more meaningful recovery in 2013. “It may not be a lack of consumer demand that’s holding housing back; it’s more likely a financial system that currently doesn’t freely accommodate residential mortgages, and it could take years to repair and reorganize the system,” Adair said. Meanwhile, the demand for rental housing is so great that apartment construction has picked up, along with a wave of investment in existing single-family rental housing.
I-joist Production
Yesterday, Today & Tomorrow (in billion linear ft.)
EWP, Panel Output Grows
Demand and production of North American structural panels and engineered wood products are expected to grow in 2012. Structural panels are forecast to increase 7% in 2012 as all end-use markets demand more volume. Overall, structural panel production is forecast at 28.0 billion sq. ft. in 2012. The outlook for glulam timber is better in 2012 than in 2011 because both residential and nonresidential construction are forecast to increase. North American production is forecast at 213 million bd. ft. in 2012, a 5% increase from 2011.
I-joist market share is forecast to increase modestly in 2012 to 53% of raised floors. As the housing market improves, I-joist market share is expected to grow steadily. The forecast for 2012 is an 11% increase to 509 million linear ft. In the structural composite lumber family, laminated veneer lumber production is expected to follow the
demand for beams and headers, rim boards and I-joist flanges. Production is forecast to increase 4% in 2012 to 43.4 million cu. ft. Additional market details and historical data are contained in APA’s 2012 Structural Panel & Engineered Wood Yearbook, available for $250 at www.apawood.org.
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“Go for efficiency.” Josh Meschi, Meschi Construction In Santa Cruz, California, Josh Meschi helps his framers and subs work more efficiently by putting color-coded information on the subfloor. (And not just any floor: pointSIX Durastrand Flooring with its innovative tapered edge.) See his system and learn more in “Three Things I’ve Learned: Tips from Seasoned Pros,” one in a series of short high-value videos from pointSIX and Ainsworth Engineered.
www.pointsixexperts.com/josh
SCAN TO VIEW VIDEO
SPECIAL Focus APA on Engineered Wood
Advanced Framing
New techniques boost efficiencies, conserve resources
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with 2x6 wood studs spaced 24 inches on center is one of the most cost-effective solutions for builders and installing dealers trying to balance energy and structural building code requirements. Installers who utilize advanced framing techniques optimize framing material usage, reduce wood waste and, with effective insulation detailing, boost the building’s efficiency. When properly designed and constructed, advanced framed walls that are fully sheathed with wood structurDVANCED FRAMING
al panels, such as plywood or oriented strand board, provide the structural strength necessary to safely withstand the forces of nature.
What’s Advanced Framing?
Advanced framing is a system of construction framing techniques designed to optimize material usage and increase energy efficiency. Structures built with advanced framing techniques are more resource efficient and offer more space for cavity insulation than similar structures built with conventional framing.
ADVANCED-FRAMED R-20 code-compliant wall systems provide a greater whole-wall R-value than conventionally framed 2x6 walls or code-minimum 2x4 walls sheathed with foam.
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Conventional framing, the industry standard for framing residential construction, typically consists of 2x4 or 2x6 wood framing spaced 16 inches on center, three-stud corners, multiple jack studs, double or triple headers, unnecessary cripple studs, and other redundant members. Advanced framing reduces the unnecessary structural redundancies inherent in conventional framing by placing framing members only where they’re needed. The most commonly adopted advanced framing technique is 2x6 wood framing spaced 24 inches on center. Other commonly used techniques include insulated three-stud corners or two-stud corners with ladder blocking, multiple wall intersection options, single headers and insulated headers, minimal use of jack studs and cripples, and the elimination of redundant studs and unnecessary blocking and bridging. Although some advanced framing techniques can be adopted independently, the greatest savings—in both cost of construction and energy—will be realized when the system is applied holistically. Advanced framing—also known as optimum value engineering (OVE)— was developed by NAHB Research Center in the 1970s for the purpose of optimizing material usage while maintaining structural integrity. Today, growing interest in energy conservation is leading more and more builders and installers to adopt advanced framing techniques. APA recommends installers consult their local building official early Building-Products.com
in the design phase to verify and obtain acceptance of 24-inch framing techniques in their jurisdiction.
Advantages of Advanced Framing
The key advantages of advanced framing include: 1. Energy Efficiency Advanced framing is a proven method for cost-effectively meeting energy code requirements. By maximizing space for cavity insulation and minimizing the potential for insulation voids, advanced framing delivers significant energy performance and cost savings for the builder. Walls built with 2x6 wood framing spaced 24 inches on center have deeper, wider insulation cavities than conventional 2x4 framing spaced 16 inches on center. Increasing the amount of insulation inside the wall improves the whole wall R-value (see Figure 1). In addition to maximizing space for cavity insulation, advanced framing simplifies the installation of insulation and air sealing. Conventional framing can leave voids and small cavities in the framing at wall intersections and corners that can be difficult to insulate and seal effectively. By installing fewer framing members, it is easier for the builder to apply complete insulation coverage and achieve a tighter building envelope. As energy codes have become increasingly stringent, advanced framing has grown more popular in climate zones where high prescriptive wall Rvalues are mandated or desired. While framing with 2x6 studs spaced 16 inches on center is already common in many northern states with more restrictive energy demands, increasing stud spacing to 24 inches on center, insulating effectively and fully sheathing with wood structural panels, such as plywood or OSB, allows installers to cost-effectively balance energy and structural code requirements. In addition, advanced framing can help builders meet the requirements necessary to earn the Energy Star label for new homes.
2. Cost Effectiveness
Advanced framing is less expensive because it is more resource efficient than conventional framing. By framing with 2x6 wood studs spaced 24 inches on center, builders optimize framing material use and reduce framing installation labor. Advanced framing can help to Building-Products.com
www.Roseburg.com
Engineered Wood Products
Quality Engineered Wood Products for today’s builder® Lyle Lee has been building custom homes for over 20 years. Here is what he has to say about Roseburg’s Engineered Wood Products. “When building a quality home, it’s important for all the framing materials to match. In other words come together as specified in the design plans. If the framing is off by even a ¼ of an inch, it can cost me thousands of dollars in time and materials. I find Roseburg’s RFPI®-Joist and RigidLam® LVL to be very consistent in width and depth. When I use Roseburg’s RFPI®-Joist, my floors are more level, stiffer and truer, making my job much easier. This home is 6,000 square feet so I used I Joist and LVL from several different units and the manufacturing consistency was exactly the same. If you want to maximize your profit, I would recommend using Roseburg’s Engineered Wood Products”. Lyle Lee L. Lee Building Company
TF 800-245-1115 Engineered Wood Products | Real Wood Siding | Softwood Plywood | Lumber RFPI®, RigidLam®, RigidRim® and Quality Engineered Wood Products for today’s builder® are registered trademarks of Roseburg Forest Products, Roseburg, Oregon
July 2012 The Merchant Magazine
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increase the efficiency of other trades as well. More space between framing members means fewer studs for plumbers and electricians to drill through and fewer cavities for insulators to fill. Additional savings may result from a reduction in construction waste and Dumpster costs.
3. Structural Integrity
The advanced framing method combined with continuous wood structural panel sheathing delivers an optimal solution: a cost-effective framing system that will produce more energy-efficient homes without compromising the strength or durability of the structure. Where builders align the vertical framing members under the roof trusses or rafters, a direct load path is created in which compression and tension
loads are directly transferred through the vertical framing members. The result is a stronger structure with fewer framing members subject to stresses. When properly constructed, advanced framed walls that are fully sheathed with wood structural panels provide the structure with the strength to safely withstand design loads. Of all the available wall sheathing products, wood structural panels are afforded the most flexibility within the building code for 24-inch on center wall framing, providing solutions to code limitations that restrict most other wall bracing materials and popular siding products.
4. Sustainability
Wood construction systems such as advanced framing techniques fit well
COMPONENTS OF ADVANCED FRAMING: Houses constructed with advanced framing techniques may include some or all of the following details:
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with green building strategies. Wood is a renewable resource that is manufactured in efficient processes that require less energy than is required for other building materials, such as steel and concrete. Wood-frame construction that utilizes advanced framing techniques delivers even greater environmental dividends by optimizing material usage and reducing construction waste. Many advanced framing construction techniques may be eligible for points under the leading green building standards and guidelines, such as the National Green Building Standard (ICC 700-2008) and the U.S. Green Building Council LEED for Homes Rating System.
Getting Started
To ease the transition to new methods, some advanced framing techniques can be adopted independently. “Builders can incorporate the techniques in stages rather than all at once,” said Mark Halverson, field services manager for APA–The Engineered Wood Association. “For example, if meeting cold climate energy code requirements is the priority, adopting 2x6 framing at 24 inches on center while continuing to use double top plates will increase wall R-values without requiring roof, floor and wall framing to be aligned. The builder can add additional advanced framing techniques later to further reduce costs and increase energy efficiency.” APA details several advanced framing techniques in the Advanced Framing Construction Guide, Form M400. The 24-page guide (shown at right) is available for free download or print purchase at www.apawood.org.
Building-Products.com
SPECIAL Focus APA on Engineered Wood
Case Study
NINETEEN glulam frames were installed to create the unique arching roof of the LeMay Museum in Tacoma, Wa.
HEN ENTERING THE exhibit hall at the new LeMay Museum in Tacoma, Wa., visitors may find themselves gazing up at the ceiling as well as taking in the lines of gleaming classic cars. A soaring roof system made with curved glulam beams offers a striking sense of grandeur while simultaneously lending a warm, grounded aesthetic to the vast space. Nicknamed “America’s Car Museum,” the 165,000-sq. ft. facility was created to celebrate America’s love affair
with the automobile. Across its four-story, nine-acre campus, the museum will house up to 350 cars, trucks, and motorcycles from private owners, corporations, and the expansive Harold LeMay collection, from a 1906 Cadillac Model M to a 1965 Lotus racecar to a 1983 DeLorean DMC 12. Rotating exhibits, such as a collection of glass hood ornaments, also will be showcased. Along with displaying some of the world’s most aweinspiring vehicles, the museum will also serve as a gather-
MUCH OF the glulam structure is covered by 1-1/8-in. plywood sheathing, with 1/2- and 5/8-in. plywood combined in areas of tighter curvature.
Curved glulams bring sense of grandeur
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GLULAM BEAMS create a sense of warmth inside the exhibit hall, a suitable contrast to the gleaming classic cars below.
ing place for automobile enthusiasts, with meeting spaces, a membership club, a show field, and a planned educational center.
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Curve Appeal
The museum’s main hall is essentially a long exhibit floor, almost warehouse-like, but aesthetically
enhanced with its wood structure and thoughtful display details. Engineered by Western Wood Structures, the curved roof system was created with 19 glulam frames with 5-1/8-in. glulam purlins spaced 4 ft. on center as secondary framing. The glulam beams, crafted by American Laminators, Drain, Or., measure 8-3/4 inches by 52-1/2 inches and arc 104 ft. over the displays below. Because the roof curves in two directions, each of the 757 roof purlins is unique, with varying compound miter cuts and varying lengths. Each purlin hanger has a different skew and slope. One-and-one-eighth-inch fully sanded plywood sheathing from Swanson Group Mfg. LLC covers the roof, with 1/2-in. and 5/8-in. sheets used around corners to meet the 1-1/8in. thickness requirement while bending around the 17-ft. radius of curvature. Waterproof rigid insulation and a metal roof complete the structure. The arch design—one of the largest wood moment frames in the world— has a one-hour fire-resistive rating and follows the “Special Requirements for Seismic Design of Structural Glued Laminated Timber Arch Members and
Building-Products.com
Their Connections in Three-Hinged Arch Systems” from the 2009 National Earthquake Hazards Reduction Program provisions. The provisions are intended to produce ductility in the arch systems by allowing the steel connections to yield plastically during a seismic event and prevent glulam members from failing in a brittle fashion. At the south end of the structure, the roof system cantilevers over the last glulam arch, supporting the curved fascia and creating a covered outdoor gathering space. The decision to use glulam beams wasn’t purely aesthetic, as it also was one of several features that allowed
40% of the light up and 60% down, with a glowing fuse across the front, creating a strong, bright light that sets the space aglow. The June 2 grand opening of the LeMay Museum capped off nearly a decade of effort by its founders, benefactors and construction teams. The resulting space is not only one to be aesthetically and structurally admired, but one that succeeds in providing a place for car lovers to witness history, share passions, and preserve an American legacy.
SOARING 104 ft. over the cars below, the glulam beams measure 8-3/4 in. by 52-1/2 in.
Project Details
Project: LeMay-America’s Car Museum Location: Tacoma, Wa. Completed: Spring 2012 Architect: Grant Price Architects Contractor: JTM Construction Engineer: Western Wood Structures
some of the cost savings necessary to meet a tight budget, says Alan Grant, co-director of Grant Price Architects, Los Angeles, Ca. Grant says that construction of the LeMay museum cost about $104 per sq. ft., whereas typical museums can range from $400 to $800 per sq. ft.
Auto-Inspired
From the outside, the effect of the curved, metal-topped roof is gleaming and streamlined—much like the aerodynamic surfaces of an automobile. The architects took great care to ensure the modern form and size still respected Tacoma’s largely historic architecture, standing out from the surrounding buildings, including the adjacent Tacoma Dome, without overpowering them. Inside, Grant remained conscious of the structure’s primary function— showcasing shiny automobiles—when considering materials. Flooring, for example, is dark stained concrete, much like the roadways automakers consider when designing a car’s shell for optimal visual effect. Grant also paid close attention to lighting selection, noting how spot or strip fixtures at auto shows often leave bright spots and glare in photographs. The solution turned out to be simple and inexpensive: hanging fixtures that disperse Building-Products.com
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SPECIAL Focus APA on Engineered Wood
Safety by the numbers APA honors producers for safety strides
A
PA–T HE E NGINEERED Wood Association recently announced the winners of its 2011 Safety and Health Awards, a program that encourages and recognizes safety and operational excellence in the North American structural panel and engineered wood industry. Nashville, Tn.-based LP and Canfor-LP OSB Limited Partnership, Fort St. John, B.C., won Safest Company Awards in their respective categories while Roseburg Forest Products Co., Riddle, Or., earned the coveted Innovation in Safety Award. LP, a leading North American manufacturer of structural wood panels and engineered wood products, earned top honors among companies with four or more mills with a 2011 average Weighted Incident Rate (WIR) of 2.35. Canfor-LP, which produces oriented strand board, won its award in the category for companies with three or fewer mills. The company posted a perfect 0.00 WIR for 2011. One key to the success for LP and the Canfor-LP OSB plant is instilling safety and health as a core company value, rather than just a “priority.” “If you treat safety as a core value, it’s what’s guiding your thoughts, actions and behavior,” said Keith Harned, LP’s corporate health and safety director. “We call it the LP Journey to Zero. We believe that nobody has to get hurt; the overriding theme is that no one should get hurt while working at LP. That’s something we live and breathe every day.” Roseburg’s Riddle engineered wood products mill took the innovation prize for the implementation of the “Glass Walls” program. Every shift in every department has a cell leader who is responsible for monitoring safety, quality, delivery and cost information daily and briefing the rest of the crew through a “Report Out.”
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The Merchant Magazine July 2012
Safety is the first item of discussion at every Report Out, and each team member is encouraged to voice all safety concerns. Daily safety topics are also discussed. Along with the addition of mini safety audits, the Glass Wall program has significantly increased safety awareness and communication at the Riddle mill. Begun in 1982, the APA awards program honors the managements and
employees of companies and mills with the lowest severity-weighted incidence rates based on guidelines established by OSHA. It employs a Weighted Incident Rate that is calculated using both the number and severity of recordable incidents. Since 2008 was the first year that WIR was used, awards and reports for 2009 through 2011 continue to also show Total Incident Rate (TIR), the measure used in previous years. Sixty-seven APA member structural wood panel and engineered wood product facilities in the U.S., Canada and abroad participated in the 2011 program. A total of 26 mills representing nine APA member companies— Abitibi-LP Engineered Wood, Anthony Forest Products, Anthony EACOM, Calvert Co., Canfor-LP OSB, LP, Norbord, Roseburg Forest Products, and RoyOMartin—earned awards in various categories of the 2011 program. Some of the mills were
multiple award winners. In addition to the Safest Company and Innovation awards, other competition categories include Safety Improvement, Annual Safety and Health Honor Roll, Three-Year Safety Average, and Incident Free Honor Society. Sixteen mills achieved a zero incident rate for the year and thus were named to the Incident Free Honor Society. The annual honor roll, three-year average and safety improvement categories are divided into two divisions based on hours worked annually—more than or fewer than 400,000 hours. While the program awards are limited to APA members, data is collected from both member and non-member mills in order to provide a broadbased industry performance benchmark. A total of 89 mills reported data for 2011. The 2011 industry Total Incident and Weighted Incident Rates were 2.31 and 10.37, respectively, down slightly from 2.44 and 10.94, respectively, in 2010. The winning facilities and companies will be recognized and their safety accomplishments celebrated during the Chairman’s Dinner at APA’s annual meeting in November in Amelia Island, Fl. The 2011 safety awards program was the fourth year under a revitalized safety program effort spearheaded by an APA Safety and Health Advisory Committee comprised of several APA member company safety professionals. Under the committee’s guidance, three main goals were established: make the APA program the premier safety awards program in the industry, encourage the sharing of best practices as a means to improve the industry’s safety culture and programs, and most importantly, improve the industry’s overall safety performance. Building-Products.com
Jeld-Wen Acquiring CMI
Jeld-Wen, Klamath Falls, Or., agreed to acquire Craftmaster Manufacturing Inc., Chicago, Il. The deal is expected to close in third quarter 2012. CMI manufactures CraftMaster molded door facings and doors, MiraTEC exterior composite trim, and Extira exterior composite panels, with its primary production plant in Towanda, Pa.
ARAUCO To Buy Flakeboard
Santiago, Chile-based ARAUCO has agreed to purchase panel producer Flakeboard, Markham, Ont. The deal is set to close in the second half of 2012. Flakeboard operates seven production facilities in the U.S. and Canada, producing MDF, particleboard and thermally fused melamine panels. Locations include Bennettsville, S.C.; Malvern, Ar., and Albany and Eugene, Or. In January, ARAUCO also acquired an MDF and particleboard facility located in Moncure, N.C., which will be combined with Flakeboard’s existing mills and operate under the Flakeboard name. Kelly Shotbolt, president and c.e.o. of Flakeboard, and his senior management team will combine and lead this company.
and used it to cover up his license plate. In total, the thief took 80 2x4s, a wheelbarrow, and a chop saw. He also destroyed six surveillance cameras and a 20-ft. gate, bringing total damages and losses to around $10,000.
Montana Company Wins Arizona Timber Contract
Pioneer Associates, Billings, Mt., won a contract to restore 300,000 acres of northern Arizona forests to health—called the largest thinning project in U.S. history. Under the contract, Pioneer will pay the U.S. Forest Service $6.6 mil-
lion over 10 years for the right to log the forests. The wood will feed a wood products mill that the company plans to open by the fall of 2013 in Winslow, Az. The bulk of each tree will be used to make laminate wood, while the limbs and twigs would make electricity, biodiesel, and heat for a wood-drying kiln. “The only way you can take this small wood and turn it into something valuable is through this process,” said Michael Cooley, a sawmill operator speaking on behalf of Pioneer Associates and its Arizona subsidiary, Pioneer Forest Products.
Washington Yard Hit by Multiple Robberies
Discount Lumber, Spokane, Wa., has been burglarized eight or nine times over the past year, with damages and losses totaling almost $50,000. However, the latest break-in, on May 29, was different: the robber’s face and his getaway van are clearly visible on surveillance footage. “The guy is obviously one of the stupidest people on earth,” said vice president Mark Gatlin. “This guy is so stupid, he hits the camera and the camera goes straight down and looks right at his face.” Undeterred, the thief then took 15 minutes to load 2x4 studs into his van, parked next to a busy street. After a short break, he continued loading his van with more stolen lumber. “He’s actually counting the 2x4s in his van,” said Gatlin. “You know, like it really matters. I mean, you’re robbing a place, why don’t you just throw them in?” Finally, the thief ripped a “no smoking” sign off a stack of lumber Building-Products.com
July 2012 The Merchant Magazine
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MOVERS & Shakers
Manuel Lavrador, ex-J.E. Higgins, has been named lumber purchasing mgr. for Aura Hardwoods, Rancho Cordova, Ca. Nathan Orchard, ex-Boise Cascade Distribution, is now a territory mgr. at J.M. Thomas Forest Products, Boise, Id. Cindy Feist was promoted to lumber & panel mgr. in Denver, Co. Todd Schoffstoll, ex-Pacific States Treating, has joined Viance, Charlotte, N.C., as West Coast treating services mgr., based in Weed, Ca. Tim Schrader, exLowe’s, is now director of sales & marketing; Dr. Kevin Archer, director of development; Dr. Lehong Jin, director of research, and Steve Furr, director of engineering & technical services. Jean Fahy has joined Do it Best Corp., Fort Wayne, In., as regional sales & business development mgr. for the western U.S. Jerry Gibson, ex-Spenard Builders Supply, is new to sales at Olympic Wholesale Building Supply, Olympia, Wa.
Mark Jackson, ex-BMC West, has joined the trading staff at Idaho Pacific Lumber, Vancouver, Wa. Ned Olsen, ex-Western International Forest Products, has joined the trading staff at Talon Forest, AFAUSA, Portland, Or. Brian Hendsbee is new to lumber sales at Home Depot, Littleton, Co. Doug Smith, ex-Pacific Coast Building Products, has joined the sales team at Mill Outlet Lumber, Tacoma, Wa. Cary Farrah is now a marketing & sales analyst for Weyerhaeuser Co., Federal Way, Wa. Mark Granger has been named senior research mgr. for Johns Manville, Denver, Co. Donald Kelly is a new designer at BMC West, Las Vegas, Nv. Emily Bonilla, ex-Boise Cascade, is now area sales mgr. for the Rocky Mountain region at Boral Stone Products. Doyle Simons, ex-Temple-Inland, has been named to the board of Weyerhaeuser Co., Federal Way, Wa.
Rick Harris was promoted to general mgr.-export sales & marketing at Interfor, Burnaby, B.C. Shane Harsch, ex-Terminal Forest Products, is now sales mgr.-cedarNorth America. Brad Southern has been promoted to senior v.p. & gen. mgr.-siding at Louisiana-Pacific, Nashville, Tn. Brian Luoma was promoted to senior v.p. & gen. mgr.-engineered wood products. Bob Merritt has been named c.e.o. of Benjamin Moore, Montvale, N.J., replacing Denis Abrams, who has left the company after five years. Kenny Collins has been promoted to sales director-residential division for Nichiha USA, Atlanta, Ga. Dana Lee Cole, ex-National Association of Manufacturers, has been named executive director of the Hardwood Federation, Washington, D.C., succeeding Deb Hawkinson, now president of the Forest Resources Association. Walter Melon is organizing the annual summer picnic for MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
THUNDERBOLT WOOD TREATING …Quality Wood Treating Services Since 1977 “We Treat Wood Right”…
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Marine & I ndustrial Sales Miguel Gutierrez (209) 747-7773 • Fax (209) 451-0425 miguel@thunderboltwoodtreating.com
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The Merchant Magazine July 2012
ACQ CCA BORATES D-BLAZE® ACZA (CHEMONITE®))
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Heat Treating Drying Services (KD, KDAT) Marine Piling Staining Service Rail Siding (BNSF) Coating Serv ice: MFI-SLO8 Marine Grade Spray Polyurea Coating
Building-Products.com
Progressive Solutions Okays Buyout by Solarsoft
Solarsoft Business Systems has agreed to acquire Progressive Solutions Inc., Vancouver, B.C. Founded in 1989 by c.e.o. Len Williams, PSI provides bisTrack, lumberTrack, and other software to sawmills, lumberyards, and suppliers of construction materials in North America and the U.K. “We believe that the combination with Solarsoft will provide fresh momentum to the ongoing development of PSI’s products and services for the benefit of customers, suppliers and employees,” Williams said. Solarsoft c.e.o. Shawn McMorran added, “This acquisition will add significant strength to our offering for distribution and wholesale customers. PSI’s customers will benefit too from being supported by a larger organization with international operations.” Solarsoft was formed in 2007 following the merger of CMS Software, Toronto, Ont., and U.K.-based XKO Software Ltd.
SUPPLIER Briefs
Capital Lumber’s DCs in Chino, Ca.; Woodburn, Or., and Tacoma, Wa., are now distributing Boral TruExterior Trim in California, Oregon and Washington.
Building Material Distributors Inc., Riverside, Ca., is now distributing Simpson Strong-Tie
products in Southern California. Galt, Ca.-based BMD has been distributing SST products in Northern California since 1952.
Weyerhaeuser now distributes reclaimed wood from Barnwood Industries, Bend, Or., in northern California and anticipates expanding to other markets soon.
Higuera Hardwoods, Poulsbo, Wa., has enlisted Public Lumber Co., Detroit, Mi., to distribute its FSCcertified bamboo products in Michigan.
Nichiha USA has consolidated all of its shake products into the Nichiha Shake Collection.
Matthews Marking Products
redesigned its website, www.matthewsmarking.com, with new branding and quicker, easier navigation. Building-Products.com
July 2012 The Merchant Magazine
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FAMILY Business
7 secrets of success By James Olan Hutcheson
C
HANGE, CHANGE, CHANGE.
We hear about globalization, speed, technology, virtual workforces, labor market, outsourcing, belt-tightening, etc. These and other forces may change the daily challenges of work, but the basic principles of leading a family business effectively remain unchanged. Although everyone likes to talk about leadership (and it is clearly very important), it is not the antidote to all problems. The message of leadership is repackaged, over and over again,
with a new twist or a new voice beckoning us to follow. Compare the marketing of leadership to the principle of weight loss— consume fewer calories than you burn.
This principle is very simple at its core, but as it is packaged and marketed, its complexity can become dizzying. The problem with many of today’s family business executives is not a lack of knowledge or inspirational leadership, but rather a lack of application of knowledge. In other words, there is frequently a knowing/doing gap. Leading a family business has, in many ways, not changed over the years, and spending time trying to invent new leadership techniques is probably not a good use of time. Assuming that you have a solid understanding of your business and industry, your time and energy is well spent on specific actions and implementation. Consider these well-known “secrets”:
1 . Focus. Identify your market, your competitive advantage, and your firm’s expertise, then stick to it. Staying on course with what you do best is often an operational challenge for entrepreneurs. Maintain your focus by automating, streamlining, or outsourcing functions that are not core to your business. A recent study found that the most profitable companies sold fewer products and had fewer customers and suppliers. Their conclusion, “complexity leads to overhead that results in increased expenses.” Adding complexity generally leads to increased sales with eroding net margins, while focused operations are usually more profitable. Identify the most profitable services, plants, products, salespeople, or regions in your business.
2 . Plan for Success. Planning is one of the most well-founded principles of personal and business effectiveness. Although the time horizon is shorter in today’s fast economy, planning at all levels within your company (as well as among the shareholder group) will significantly improve the likelihood of hitting targets. Effective planning should trickle down through the business. Each level of planning
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Building-Products.com
inside the business should provide the context for the next level and result in a better organizational alignment. A solid strategic plan is important, but remember, “The devil is in the details!” Companies that are diligent about translating strategies into specific, individual performance objectives tend to operate more effectively and efficiently.
3 . Communicate. Communication sounds intuitive enough, but many families in business simply miss the mark. In spite of numerous efforts by management, lack of communication is predictably the number one complaint resulting from employee opinion surveys. A closer look at the data states that employees really want/need answers to four questions: • Where is the business going? (Strategy) • What are we doing to get there? (Plans) • What can I do to contribute? (Roles) • What’s in it for me? (Rewards) Ensure that these questions are answered before communicating about other topics. Leaders from today’s most successful companies argue that, “Leadership is Communication.” Therefore, to be an effective leader, ensure that communication is a top priority and is honest, consistent, and two-way. 4 . Define Processes. Underdeveloped infrastructure (systems, processes, structures) is one of the most common risk factors for family businesses. Are your processes and systems? • Clear • Replicable • Documented • Supported by tools • Easily accessible Although it is always easy to say, “We need a new system,” it is better to streamline the manual systems before changing technical systems. Many companies who reverse this order simply end up automating inefficiencies. As an acid test for how well the processes are defined, documented and consistently used by employees, ask, “How easily could we franchise our business?” Effective processes enable management to work “on” the business rather than “in” the business.
5 . Design your Culture. Culture can be very complex. Pared down, however, it is all about behavior. Simply put, you want to design systems to reinforce behaviors that supBuilding-Products.com
July 2012 The Merchant Magazine
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port your strategy. Cultures are created and reinforced by: • Rules and policies • Goals and measures • Staffing and selection • Training and development • Ceremonies and events • Leadership behavior • Communications • Rewards and recognition • Physical environment • Organizational structure One family management team was experiencing tremendous growth and was concerned that they might lose the autonomous culture of the company.
Unfortunately, the incredibly detailed policies they implemented gave the opposite message to most employees. Another company recognized that in order to grow the business they needed to give senior managers more accountability. The c.e.o’s leadership behavior (micromanaging), communication patterns (informal and haphazard), and employee development (minimal) continued. As a result, the management team (family and non-family) never jelled. Needless to say, this company’s growth was very turbulent and slow. This latter example is not unusual to see in an entrepreneurial
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The Merchant Magazine July 2012
family business.
6 . Select and Train. You can receive the greatest return on investment by simply managing your human capital resources. Selection and training are the two best levers for improving human capital. • Resist the “warm bodyâ€? syndrome. Hire a good fit for the company and do not compromise. Employee selection is often the least effectively executed management activity. • Train continuously using a broad definition of training (mentoring, developmental assignments, special projects, building external networks, providing well-rounded feedback). • Ensure that all employees understand the business: the cost/revenue driver and how they can contribute to the financial success.
7 . Measure Performance. Measurement and feedback, like planning, are well-founded principles of human behavior. You can do everything correctly, but if you do not measure performance, you limit the company’s ability to adjust. When measuring results, keep these tips in mind: • Measure what matters. • Keep it simple. • Focus on a few key success factors. • Remember, what gets measured, gets done. • Manage what you measure. • Use your performance management system as a strategic tool, not a human resources program. • Err on measuring more frequently and less in depth. • Reward along the way and in little steps. Waiting until the end of a major project is often too great a distance from start to finish. Remember, “What you can measure, you can reward.â€? Revenue, earnings, margins and management are fundamental to a firm’s value. Intellectual property, brand image, and “eye ballsâ€? add value but, independent from the fundamentals, are usually not enough to support a lasting, high value of any firm. Turning these “secretsâ€? into actions will help create sustainable advantages in your family business. – James Olan Hutcheson is managing partner and founder of ReGeneration Partners, a family business consulting firm headquartered in Dallas, Tx. He can be reached at (800) 406-1112 or www.regeneration-partners.com.
Reprinted with permission of ReGeneration Partners. No portion of this article may be reproduced without its permission.
Building-Products.com
J.E. Higgins Closes Door on Golden State Flooring
J.E. Higgins Lumber, Livermore, Ca., has shuttered its Golden State Flooring division. Formed in the early 1900s and acquired by J.E. Higgins in 1929, the chain had operated 14 locations in California. Its three branches in Southern California closed in late May and early June, with the Northern California facilities shutting down soon after.
IN Memoriam
Ramsey P. Fendall, 86, longtime Pacific Northwest lumberman, died May 14. A World War II Air Force sergeant and POW in Germany, he began his 50+-year industry career in the late 1940s after graduating from the University of Oregon. He worked as sales manager for Cape Arago Lumber, Coos Bay, Or.; Georgia Pacific in Alaska; Hampton Lumber, Portland, Or.; RSG Forest Products, Kalama, Wa., and Dixieline Lumber, San Diego, Ca., before helping launch Dixieline’s cargo facility in Columbia City, Or.
Richard James Nowak, 65, retired Oregon mill supervisor, died June 17. He worked as a mill supervisor for Brooks-Scanlon Lumber, Bend, Or., from 1966 to 1976, before serving as maintenance superintendent at Whittier Moulding, Redmond, Or. Ronald Lloyd Fosdick, 75, longtime contractor salesman at ProBuild, Shelton, Wa., died April 20. After working for Simpson Timber and operating his own flooring business, Omni Floor Covering, he joined Lumbermens in 1981, which later became ProBuild. He retired in 2009.
SIMPSON STRONG-TIE was named 2011 Preferred Supplier Partner of the Year by tool co-op Sphere 1. Accepting the prize are (l-r) Kent Gilbert, fastener sales mgr., and Mike Clemente, anchor systems marketing director.
Herbert “Herb” Leon Church, 91, longtime foreman for Winton Lumber, Martell, Ca., died June 12. He started in the lumber business at age 12 and served in the U.S. Army during World War II and the Korean War. He joined Winton after moving to Amador County, Ca., in 1959, and retired in 1983.
Dale Sharp, 68, salesman for Building Solutions, Bend, Or., died May 20 in an accident at his home in Culver, Or. He joined the lumber industry after serving four years in the U.S. Army as a mechanic in Korea.
Donald “Keith” Farquhar Jr., 61, founder and owner of Easy Creek Lumber Co., Eugene, Or., died May 24 of heart failure. He launched Easy Creek in 1979. Harold P. “Hal” Jewett, 88, longtime Oregon lumberman, died May 23. After earning a forestry degree from Oregon State University and serving in the U.S. Navy during World War II, he spent 35 years with Georgia-Pacific and Booth-Kelly Lumber Co., Springfield, Or. Building-Products.com
July 2012 The Merchant Magazine
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NEW Products
Solar Roofing Powerful Fasteners
Universal Fastener Outsourcing’s Ballistic NailScrews are available with coatings for interior and exteriors applications. The 1” to 3” screws are mounted on a plastic strip and can be installed with gas or pneumatic nailers. They can be removed like any ordinary screw.
911-NAILS.COM (800) 352-0028
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Photovoltaic roofing systems from CertainTeed are designed for residential applications. Apollo has integrated polycrystalline solar panels that lie flat with surrounding asphalt shingles. The product is lightweight, durable, and resistant to wind uplift. PowerMax hides mounting clips for a sleek, uniform look. Under ideal conditions, the product can generate 100 watts per module.
CERTAINTEEDSOLAR.COM (800) 233-8990
Building-Products.com
Hold in a Hurry
Transforming Stains
Sashco’s new Transformation stains for decks, fences, siding and trim provide UV resistance for exterior wood. Instructional videos and a mobile website help users achieve staining success.
SASHCO.COM (800) 767-5656
Building-Products.com
Loctite’s PL Premium Fast Grab adhesive provides a durable bond that can be repositioned for up to 30 minutes, minimizing the need for nailing or bracing. The low-VOC polyurethane is compatible with most building materials, including treated, wet and frozen wood, concrete, brick, metal, marble, mirrors and masonry. It is suitable for both horizontal and vertical applications.
LOCTITEPRODUCTS.COM (800) 624-7767
Curvy Plywood
Radius plywood from Columbia Forest Products is flexible enough for curved contours on columns, arches and cabinetry. The plywood flexes easily at a minimum radius of 12”, and even smaller when force is applied. It can be installed in either longgrain or cross-grain directions for complex designs. Sizes include 4’x8’ long-grain and 8’x4’ cross-grain styles, in thicknesses from 1/8” to 16mm.
CFPWOOD.COM (800) 637-1609
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Window & Siding Sealants
Spec Line sealants and adhesives from DAP Products are designed for window and siding installations. Performance facts printed on each cartridge make it easy to pick the right product for each application.
DAP.COM
(888) 327-8477
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Energy-Efficient Lift
Cat Lift Trucks’ new 2EPC5000-2EP6500 series features improved energy efficiency, higher performance levels, and better operator ergonomics. The truck can operate up to two shifts on one battery charge. Sealed wet-disc brakes, electrical components, and connectors provide protection against adverse conditions.
CATLIFTTRUCK.COM (800) 228-5438
Building-Products.com
Stacked Stone Look Fire-Protected Cedar Shakes & Shingles
SW Forest offers cedar shakes and shingles protected by the Fire Safe treatment. The process begins with moisture removal in dry kilns, followed by pressure treatment that forces chemicals into the inner cells of the wood, reportedly creating a permanent fire resistance.
SWFOREST.COM (800) 806-9663
Narrow-Aisle Lift
The Jungheinrich EKX 410 forklift from Mitsubishi Caterpillar Forklift America is designed to operate in narrow aisles. Lift height has been increased to more than 30 ft., for full pallets as well as individual boxes or pieces.
JUNGHEINRICH-LIFT.COM (713) 365-1000
Ply Gem’s Stone True Stack is a modular product with the look of stone. Pieces are 1”, 13” and 18” long, with matching corner stones, for a custom look. A 1/4” groove on the back creates a 1/2” gap that is easy to fill and blend with mortar. Produced with real stone casts, it comes in seven colors: Sonoma, Calgary, Cambria, Shenandoah, Tuscarora, Arkose and Flint.
PLYGEMSTONE.COM (888) 975-9436
Metal Joist Fastener
Deckfast fasteners from Starborn Industries can be used with steel and aluminum deck joists. An epoxy coating matches popular decking products and provides corrosion resistance. A specially designed head can penetrate the hard outer layer of capstock decking products and selfcountersinks into ipé and other hardwoods.
STARBORNINDUSTRIES. COM (800) 596-7747
Building-Products.com
July 2012 The Merchant Magazine
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WILLAMETTE HOO HOO Photos by Archie Brown
WILLAMETTE VALLEY HOO-HOO Club gathered for its 71st annual golf tournament June 1 at Shadow Hills Country Club, Junction City, Or. [1] Mark Grube, Joe Noble, Joe Honochick, Jeff Walton. [2] Steve Killgore, Pat Lynch, Jim Steele, Len Bolton. [3] Pat Meyers, Jerry Farley, Bob Brass, Rob Parks. [4] Barry Greathead, Gene Klohs, Doug Koke, Anji Silverman. [5] Tony Rogers, Gary Rost, Curt Smith, Ben Carter. [6] Mark Mitchell, Steve Grimes, Jack Moad, Harry Nelson. [7] Jim Myers,
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The Merchant Magazine July 2012
Brad Myers, Brian Myers, Eddie Smalling, Tom Shea. [8] Bryce Jonas, Chris Re, Donn Thomas, Aron Flemming. [9] Mike Gaber, Bob Riesbeck, Jim Childs, Chris Gaughan. [10] Tom Shea. [11] Mark Denner, Rick Siltanen, Casey Garlan, Jeff Ernst. [12] Greg Carter, Kevin Lee, Kevin Dodds, Jay Hart. [13] Archie Brown, Todd Nystrom. [14] Amy Nystrom, Nathan Nystrom, Linda Crocker, Lovina Weaver. Building-Products.com
ASSOCIATION Update
Lumber Association of California & Nevada’s 2nd Growth summer conference is July 19-20 at Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca. Brian Brunt will discuss how to develop your company’s image and message through word of mouth marketing campaigns. Afterwards, industry professionals will share their experiences in a session named “Industry Mentoring: Our Past, Present and Future.” Western Building Material Association will hold a mid-year meeting July 26 at the Hilton HotelSeaTac Airport, Seattle, Wa.
Harborside International Golf Center to benefit the Hardwood Forest Foundation, plus cocktail receptions, dinners, and a trolley tour of Chicago.
Timber Products Manufacturers Association is hosting its annual golf tournament to support its scholarship fund Sept. 14 at Indian Canyon Golf Course, Spokane, Wa. The event includes contests, prizes, a silent auction, social and dinner at Northern Quest Casino, Airway Heights, Wa.
Western Wood Products Association will gather for its annual summer meeting Aug. 15-16 at Portland Hilton & Executive Tower, Portland, Or. Festivities will include a wine tour, opening reception, and a luncheon with speaker.
Los Angeles Hardwood Lumberman’s Club plans an evening of wine tasting and barbeque Aug. 11 at a member’s home in Yorba Linda, Ca. July 14 will be a trip to enjoy the “Happy Together Concert Tour” at Orange County Fairgrounds, Costa Mesa, Ca.
Mountain States Lumber & Building Material Dealers Association is putting the finishing touches on a pair of golf events—the Colorado WOOD Council tourney July 17 at The Ranch Golf & Country Club, Westminster, Co., and the Western Slope tournament Aug. 24 at the Rifle Creek Golf Course, Rifle, Co.
National Hardwood Lumber Association will host its annual convention Sept. 12-15 at Sheraton Hotel & Towers, Chicago, Il. Seminars will cover such topics as energy management and assessment, recruitment and retention, estate planning, and market trends. Events will include golf at the
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REDWOOD EMPIRE Wholesale is a timber and manufactured based distributor of redwood, pressure treated, plywood and imported hardwood such as Ipe and softwood lumber. In addition to our manufactured base products, Redwood Empire distributes high quality western species fir and other softwoods as well as steel products. We are looking for highly motivated, well-rounded and experienced salespeople for our locations in Morgan Hill and Carlsbad, Ca. Please send resumes to Sean Burch, sburch@redwoodemp.com. www.redwoodemp.com
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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.
Los Angeles Hardwood Lumberman’s Club – July 14, Happy Together Concert, Orange County Fairgrounds, Costa Mesa, Ca.; (625) 445-8556; lahlc.net. Mountain States Lumber & Building Material Dealers Association – July 17, WOOD Council golf tournament, Ranch Golf & Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.
Lumber Association of California & Nevada – July 19-20, 2nd Growth summer conference, Palm Desert, Ca.; (800) 266-4344; www.lumberassociation.org. Western Building Material Association – July 26, mid-year meeting, Hilton Hotel-SeaTac Airport, Seattle, Wa.; (360) 943-3054; www.wbma.org.
Southern Oregon Lumbermans Association – July 26-27, 50th anniversary golf tournament & BBQ, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.
Umpqua Valley Lumber Association – Aug. 2-3, Mill Week, Roseburg, Or.; aliceb@drjlumber.com.
Los Angeles Hardwood Lumberman’s Club – Aug. 11, wine tasting & BBQ, Yorba Linda, Ca.; (625) 445-8556; lahlc.net.
Southern California Hoo-Hoo Club – Aug. 15, dinner & meeting, Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842; www.hoohoo117.org.
Western Wood Products Association – Aug. 15-16, summer meeting, Portland, Or.; (503) 224-3930; www.wwpa.org.
Ace Hardware Corp. – Aug. 16-18, fall market, McCormick Place South, Chicago, Il.; (630) 990-7662; www.acehardware.com.
Orgill Inc. – Aug. 16-18, dealer market, Las Vegas Convention Center, Las Vegas, Nv.; (800) 347-2860; www.orgill.com.
Remodeling & Decorating Show – Aug. 18-19, Orange County Fair & Event Center, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com. International Woodworking Fair – Aug. 22-25, Georgia World Congress Center, Atlanta, Ga.; (404) 693-8333; iwfatlanta.com.
Mountain States Lumber & Building Material Dealers Association – Aug. 24, Western Slope golf tournament, Rifle Creek Golf Course, Rifle, Co.; (800) 365-0919; www.mslbmda.org.
Remodeling & Decorating Show – Aug. 24-26, South Town Expo Center, Sandy, Ut.; (818) 571-9012; www.thehomeshow.com.
National Assn. of Women in Construction – Aug. 29-Sept. 1, annual convention, Denver, Co.; (800) 552-3506; www.nawic.org.
BC Wood – Sept. 6-8, global buyers mission, Whistler Conference Center, Whistler, B.C.; (877) 422-9663; www.bcwood.com.
Western Red Cedar Lumber Association – Sept. 6-8, annual meeting, Whistler Conference Center, Whistler, B.C.; (604) 6840266; www.wrcla.org. Horizon Distribution Inc. – Sept. 8-9, annual market, Yakima Convention Center, Yakima, Wa.; (800) 541-8164; www.horizondistribution.com.
Construction Specifications Institute – Sept. 11-14, annual convention & show, Phoenix Convention Center, Phoenix, Az.; (800) 689-2900; www.csinet.org. Willamette Valley Hoo-Hoo Club – Sept. 12, trap shoot, Sportsman’s Club, Creswell, Or.; (541) 688-6675.
GlassBuild America – Sept. 12-14, Las Vegas Convention Center, Las Vegas, Nv.; (866) 342-5642; www.glassbuildamerica.com. Jensen Distribution Services – Sept. 12-14, fall market, Spokane Convention Center, Spokane, Wa.; (800) 234-1321; www.jensenonline.com.
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July 2012 The Merchant Magazine
49
ADVERTISERS Index
IDEA File
More dealers are adding recycling to the list of services provided to customers. Though it takes some effort, most agree that it’s well worth it—both in environmental and business terms. Consider Pete’s Ace Hardware, Castro Valley, Ca. The family-owned store has been recycling customers’ fluorescent lights for the past year. However, the store’s efforts really took off last month when it began participating in a recycling program sponsored by the local waste management agency. “We are excited to participate and hope that residents will see how easy it is to properly recycle their fluorescent light bulbs and tubes,” says owner Linda Roark. The local agency provided advice and signs— “Recycle Here, Buy Here”—for participating dealers, plus ads in local newspapers that publicized the program’s June 9 kick-off. According to store manager Jason Roark, the newspaper ads raised local awareness of recycling and the signs—placed in the front of the store and in the lighting aisle—were instrumental in encouraging homeowners to bring in their used bulbs. He says that store employees also discussed the recycling program in their interactions with customers. The store accepts, sorts, counts and stores the bulbs in a back room before they are transported to a central recycling site once a month. Lights Out
Respecting the forest, honoring the past, building the future. A nation’s pride you can build on.
For more information on advertisers, call them directly or visit their websites [in brackets].
Advantage Trim & Lumber [www.advantagelumber.com]..........39
AERT [www.aertinc.com].................................................................3
Ainsworth [www.ainsworth.ca] ................................................26-27 APA-The Engineered Wood Association [apawood.org]............32 BC Shake & Shingle Assn. [www.bcshakeshingle.com] ............19
Bear Forest Products [www.bearfp.com].....................................42
California Cascade Industries [www.californiacascade.com]......7 Canfor [www.canfor.com]....................................................Cover III
Capital [www.capital-lumber.com]................................................39
Eco Chemical [www.ecochemical.com] .......................................40 Fontana Wholesale Lumber [fontanawholesalelumber.com].....41
Hoover Treated Wood Products [www.frtw.com] .............Cover IV Huff Lumber Co. .............................................................................33
Humboldt Redwood Co. [www.getredwood.com] .......................21
J.H. Baxter [www.jhbaxter.com]....................................................38 Keller Lumber Co............................................................................35
LP Building Products [www.lpcorp.com].....................................31
McFarland Cascade [www.mcfarlandcascade.com] ...................37
Murphy Company [www.murphyplywood.com] ............................5 Norman Distribution Inc. [www.normandist.com].......................47
Osmose [www.osmose.com] ................................................Cover I Pacific States Treating ...................................................................13
Pacific Wood Preserving Cos. [www.pacificwood.com].............43 Parr Lumber ....................................................................................18
Quality Borate Co. [www.qualityborate.com] ..............................44
Redwood Empire [www.redwoodemp.com].................................15
Rosboro [www.rosboro.com] ........................................................23
Manufacturers of 10 million bd. ft. monthly of
Roseburg Forest Products [www.rfpco.com] ..............................29
• 5/4 & 6/4 Ponderosa Pine Shop • 4/4 Premium Pine Board Programs
Simpson Strong-Tie [www.strongtie.com]..........................Cover II
State-of-the-Art Hewmill & Headrig Mill
Sunbelt [www.sunbeltracks.com] .................................................47
Contact Sheldon Howell
Bob Bretz
(509) 874-1163
(805) 995-0700
Yakama Forest Products 3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162
www.yakama-forest.com 50
The Merchant Magazine July 2012
Royal Pacific Industries .................................................................49
Siskiyou Forest Products [siskiyouforestproducts.com]...........11
Superior Wood Treating [www.superiorwoodtreating.com].......45 Swanson Group Sales Co. [www.swansongroupinc.com].........25 Taiga Building Products Inc. .........................................................41
Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....36 Utah Wood Preserving Co. ............................................................35
Yakama Forest Products [www.yakama-forest.com]..................50 Building-Products.com
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