The Merchant Magazine - August 2011 by 526 Media Group

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MOULDING & MILLWORK FORECAST DECKS FOR SOLDIERS GOING GREEN

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AUGUST 2011

Magazine

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The

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Special Features 9 FEATURE STORY SOLID REBOUND PREDICTED FOR MOULDING & MILLWORK

10 COMPANY FOCUS SOUTHERN CALIFORNIA’S FROST HARDWOOD AT 100

12 MANAGEMENT TIPS LITE GREEN DOESN’T WORK: 3 WAYS TO PROVE YOU’RE COMMITTED TO GREEN

13 COMPANY FOCUS THE NEW MCCLOUD RIVER LUMBER

14 MARGIN BUILDERS DEALERS RALLY TO BUILD DECKS FOR VETS

30 MANAGEMENT TIPS LEAD YOUR COMPANY THROUGH CHANGE

40 PHOTO RECAP: INLAND LUMBER

PRODUCERS GOLF TOURNAMENT

The Merchant Magazine August 2011

In Every Issue 6 TOTALLY RANDOM 16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES 20 GREEN RETAILING 32 MOVERS & SHAKERS 33 IN MEMORIAM 35 NEW PRODUCTS 43 ASSOCIATION UPDATE 44 CLASSIFIED MARKETPLACE 45 DATE BOOK 46 IDEA FILE 46 ADVERTISERS INDEX

August 2011

Volume 90 Number 2

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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 796-560) 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®2011 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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TOTALLY Random By Alan Oakes

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www.building-products.com

A publication of Cutler Publishing

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

Is this why the housing’s so messed up? IRST, I HOPE

you are having a good summer. It seems that we never had a spring this year in most of the country, and went straight from winter to summer. Most of my contacts say they never enjoyed the normal bump in spring, and that they are in what I have termed a “bobble-along time.” Certainly, 2011 has already already proved itself to not be the year of the long-awaited turnaround. While we are still seeing job losses and little hiring, the closing of businesses does seem to have slowed this year compared to last. Perhaps it suggests that the industry has taken the necessary steps to deal with its new reality. Nonetheless, it is still not an easy time for most. I have heard from a number of you mostly agreeing with my comments in our June issue (“Does Home Ownership Still Make Sense?,” p. 6). Since then, I have read some contradictory reports on that issue. Time will tell, but one major factor inhibiting the sale of homes has just become very evident to me personally. I just read that only about four out of 10 mortgages are now approved, meaning that six out of 10 buyers walk away empty handed and the sale or refinance does not happen. And, frankly, after the last month, I can well believe it. From a period of giving mortgages away to anyone and everyone who could write their signature (or maybe not), the pendulum has swung the opposite direction. It has made me wonder how much this issue is now holding back tens if not hundreds of thousands of sales that our industry so desperately needs, as well as refinancing dollars to fuel the remodeling market and the overall economy. If one considers that home prices nationally are probably 30% to 40% lower than they were and are almost back to year 2000 levels, then so many people not qualifying really doesn’t seem to make sense. The banks have simply over-corrected their loan requirements. No one could disagree that lending standards in the boom were far too lax, and the banks frankly got what they deserved. So to get back to paying themselves the big bonuses they are simply eliminating all risk and not doing what they are in business to do. With the current low rates, I finally decided to refinance my mortgage. With a high credit score, a low loan-to-value application, a steady job, and anything any one could ask for to get a loan approved, I have spent a month faxing, emailing, and receiving letters from whoever to show and prove I am a worthy payer. After generating 200+ pages of documents, I am still not approved. Almost every day I get an email saying the loan is approved subject to this or that, but even when I address that issue I get the same reply with yet another condition. This has now reached the ridiculous, with requests for more and more documents, and it never seems to stop. There is absolutely nothing that should have made this anything but a rubber stamp mortgage. This tells me we have great problems. This nonsense can only exacerbate the housing crisis and delay the recovery. I fully understand the need to tighten requirements. I understand that not everyone is entitled to a mortgage. But if my experience is similar to what everyone else’s is, unless this situation gets back to reality of who really is a risk and who really isn’t, we cannot see a recovery. Every day borrowers with good credit and good history are failing to meet overly rigid requirements. They are perhaps tripped up by one automated red flag and turned down. They may meet the Fanny Mae and Freddie Mac requirements but then fail an overlay requirement required by the lender. No one can argue that the banks should be able to set their own requirements, but there has to be reason and sanity. If solid, credit-worthy citizens are being turned away in quantity, there is something desperately wrong with the system. There has to be a happy medium, and today there is clearly not. Have a good rest of the summer. I am heading back to the fax machine! Alan Oakes, Publisher ajoakes@aol.com

The Merchant Magazine August 2011

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

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FEATURE Story Moulding & Millwork Forecast

Photo by MiraTEC

Solid rebound ahead in moulding and trim

WOOD SUBSTITUTES are taking a larger slice of the millwork market, particularly outdoors, such as with exterior trim.

.S. DEMAND FOR for moulding and trim is forecast to increase 10% a year, to surpass $10 billion in 2014, according to a recent report by the Freedonia Group. Gains will be fueled by an expected rebound in new residential construction expenditures, following their depressed 2009 level. As the housing market contracted from 2006 through 2009, moulding and trim demand suffered a steep decline. The new residential market, which normally accounts for more than 40% of overall demand for moulding and trim, saw its share drop to just over 20% in Building-Products.com

2009. Even though the recovery in housing completions will still fall short of the 2004 level, new residential demand for moulding and trim will have regained its usual share by 2014. While other markets for moulding and trim will see growth through 2014, advances will be much less spectacular than those for new residential building. Demand in the nonresidential building market, which managed modest growth over the 2004-2009 period, will accelerate as construction activity in the office and commercial segment, a key market for nonresidential moulding and trim demand, recovers from weakness triggered by the U.S. recession. Interior products account for the largest share of moulding and trim demand. Because interior moulding is widely used in all major types of housing, demand for these products will receive a major boost from the anticipated rebound in new residential construction. Value gains will be

slightly faster, however, for exterior trim, aided in part by demand for higher priced, more durable materials, such as plastic. Despite competition from plastics and wood-plastic composites, wood will remain the leading material for moulding and trim, with gains supported by the recovery in residential building construction. Solid price gains for wood will further boost market value. By 2014, plastic is forecast to surpass metal as the second leading material for moulding and trim. Demand for plastic products will benefit from the rebounding new residential construction market, especially for exterior trim. Plastic products are said to perform better than wood against exposure to the elements, thus making plastic an ideal choice for exterior molding and trim products. Further, improvements in the appearance of plastic have made high-end plastic moulding almost indistinguishable to the untrained eye from wood.

Wood Moulding & Trim Demand by Market

Market

Residential New

Repair/Remodel

Nonresidential New

Repair/Remodel

(Millions of Dollars)

1999

2004

1365

1632

3644 2279 1202 919 283

2009

2014

2019

1229

1425

1585

4812

2207

1275

1308

3180 978 297

978

1007 301

4405 2980 1525 1205

320

5245 3660 1805 1455 350

August 2011 The Merchant Magazine

COMPANY Focus Frost Hardwood

Hardwood wholesaler starts second 100 years

1920s: Century-old Frost Hardwood in downtown San Diego still finds its roots in the same family philosophy that saw it through both good and challenging times.

in San Diego, Ca., that existed in 1911. The seaside town was home to only 39,000 residents and didn’t even boast its first permanent U.S. Navy base. Quiet and unassuming, its people were focused on looking out for one another both professionally and personally. Fast forward 100 years later. San Diego County holds more than three million people and is the ninth largest metropolitan area in the United States. Its economy is as diverse as its population, complete with a host of tourist, high-tech, life sciences, and defenserelated businesses. Even the city’s “Old Town” section recently received a renovation. At first glance, nothing seems to be as it was. Not so, says Frost Hardwood, as it ERY LITTLE REMAINS THE SAME

The Merchant Magazine August 2011

celebrates its centennial this summer. “We’ve had a virtual love affair with San Diego—and its small businesses—since our inception,” says G.T. Frost Jr., co-owner and member of the third generation in his family to run the company. “It’s been the cornerstone of our values, and a key reason why we’re so optimistic about the next hundred years.” The family’s hardwood history began when Albert Frost Sr. saw an opportunity to purchase a single rail carload of hardwood flooring and travelled around town selling literally door to door. One car led to two, and soon the young firm established its first storefront in the then-small downtown area. Following World War II, Albert Frost’s sons—Gordon and Albert

1990s: Wholesaler’s fleet loads up for the day’s deliveries to clients throughout Southern California. Building-Products.com

Jr.—joined the company and began to expand the product lines to other imported hardwoods and laminates before passing the torch to the current line of Frosts to run operations. Today, G.T., Bruce and Jim Frost manage the company out of a twostory, 80,000-sq. ft. facility on seven acres of land in the geographic center of San Diego. It primarily wholesales hardwood lumber and specialty softwood lumber, plywood, particle board, melamine, Nevamar decorative laminate, and other closely related products to the woodworking industry. Frost Hardwood supplies accounts in San Diego, Orange and Imperial Counties as well as some Mexican communities near the border. The company also developed export capabilities and offers custom milling and moulding services in more than 50 stocked hardwood species. Despite the growth in product lines and service areas, Frost Hardwood is steadfastly committed to the service aspects of its business. “We’ve seen just about every economic environment, including the Great Depression,

two World Wars, and several recessions like the one we’re emerging from today,” says Bruce Frost. “The key to riding out the tough times and relishing the good ones has been to not waiver from our core commitment to small business. From furniture manufacturers and woodworkers, cabinet makers and local flooring shops to boat repair and construction subcontractors, we recognize that our success is their success, and we can’t succeed unless they do.” Frost’s unwavering dedication also extends to its staff, with some employees having recently surpassed their thirtieth year of working for the company. It’s all in a day’s work and, according to the current generation of owners, essential to its longevity. “Everyone in our organization order clerks, salesmen, millmen and truck drivers—knows that the key to our long-term success is customer satisfaction,” says Jim Frost. “It’s easy to get tied up in the day-to-day activities, but one thing’s for sure: if we don’t put our clients first, we lose our edge and become like everyone else. That’s

not the way we’re wired.” One key factor in determining a company’s longstanding success is in the seamless transition of its management team. This is daunting under normal circumstances, but even more so when family dynamics are involved. To do it once is admirable; twice is rare. And three times is largely unheard of. In Frost Hardwood’s case, though, it’s a matter of course. “The Frost Hardwood business is integrated with our family values, and it’s as much a labor of love as it is a profession,” says fourth-generation Byram Frost, who, along with relative Damon Felker, is to assume the leadership once the current group of managers retire. “We have big shoes to fill, but will do so with strong adherence to what got us here: offering quality products at affordable prices with outstanding customer service to Southern California.” The question of why Frost never expanded beyond Southern California brought a quick, poignant answer. “We never wanted to the biggest,” says G.T. Frost, “just the best!”

TODAY: Frost is still family-owned and operating out of a two-story, 80,000-sq. ft. facility on seven acres of land in the geographic center of San Diego— a far cry from 100 years ago, when Albert Frost Sr. purchased a single rail carload of hardwood flooring and sold it door to door. Building-Products.com

August 2011 The Merchant Magazine

MANAGEMENT Tips By Michael Strong

Get committed to green W

ITH 20+ YEARS experience with green building and remodeling, I—like many other contractors—have experienced a disconnect between the message I hear from manufacturer and dealer reps at conferences and trade shows versus the reality of the experience back home. While manufacturers are now as excited about selling green products as we are about buying them, their commitment to green is not as deep as we hoped. Greenwashing is commonplace, lack of legitimate third party testing/certification is not unusual, and little understanding of what it means to be green is prevalent.

Yes, going green is a journey and not a destination. And yes, as an industry, we are doing a lot of this on the fly. But these realities are no excuse for ignoring the milestones we have passed, the resources available to us, and the fact that educating reps to better serve the green builder client is a win-win for everyone. When it comes time to buy green building products, we buy into the individual first, the company second, and the product third. The majority of the salespeople I have purchased from over the last 20 years have been comfortable selling obsolete (non-green) products, so why would I buy into their representation of a green product? In my eyes, the worst-case scenario is that they have no credibility and the best case is that they have some explaining to do. If you are a brown company trying to sell green products, you will run into skeptical consumers, builders, and remodelers who are just like me. And your field reps will run into a buzz saw of that skepticism. In order to protect and better arm those reps in the field, you can take some concrete steps to improve the street credibility of your company:

Revamp your culture. Yep, I

know this is big one. You are either committed to being green or you’re not. That doesn’t mean you must become the purest shade of green possible or that it needs to occur overnight. But it does mean your company is committed to getting greener every day, that it has a plan to do so, the budget to support it, and that your senior leadership is person-

The Merchant Magazine August 2011

ally committed to the change.

Offer all green products.

Not just some products. Not just some of the time. Again, this will likely not happen overnight, but the commitment to being green across all your product offerings will speak volumes about your company’s commitment to green.

Get rated. Getting the seal of approval from unbiased, third-party, science-based organizations will help your field reps more than anything else you can say or do. And it will make it easier for me to specify and buy your products, as I will not have to do that research myself. In 2011, being committed to your stakeholders (employees, customers, communities in which you operate, and your shareholders) means being committed to green. Being committed to green requires, at a minimum, offering products that will have the least possible negative consequences to the planet. The good news is there are numerous other companies that have blazed this trail before, so there will be less skeptical, more enthusiastic buyers waiting when you get there!

– Named NAHB’s Green Remodeling Advocate of the Year in 2008, Michael Strong’s projects include the first LEEDrated home in Houston, Tx., and Texas’ first NGBS-certified remodel. He consults with supply-chain distributors and manufacturers on how to “green” their sales force for the housing rebound, co-hosts a weekly radio show on green building issues, and co-instructs a green building/remodeling class at Rice University. Contact him at michael.d.strong@att.net. Building-Products.com

COMPANY Focus McCloud Lumber Co.

Moulding and millwork manufacturer builds on century-old heritage W

HEN A GROUP

of investors decided to open a new moulding and millwork enterprise in Buckhannon, W.V., they agreed to use the name of a company established in McCloud, Ca., in 1897. “The McCloud River Lumber Co. fit the bill perfectly,” says Jason Rohr, who is one of the investors and serves as president. “We originally considered starting a new business for this venture, but decided to revive an old company with a rich history and heritage instead.” The original company got its start in 1897, when George W. Scott and William Van Arsdale bought a failed mill in McCloud, Ca. The company was sold to U.S. Plywood in 1963, which sold it to Champion International two years later. P&M Cedar Products, Stockton, Ca., entered the picture in 1980, but closed the mill for good in 2002. The new company manufactures crown moulding, casing, and other wood products from locally harvested Appalachian hardwoods. “The CNC machines we use are Compucarve Version C’s,” says Rohr. “They are factory-modified so they can produce moulding up to 16’ long, even though our standard

Building-Products.com

moulding is typically produced in 8’ lengths. We also produce traditionalstyle moulding with our Woodmaster Model 725 machines.” Although a nearby sawmill currently processes the rough lumber, McCloud Lumber plans to eventually set up its own mill. The company is also setting up its own distributor program. “Our goal is to make our product easily available to anyone who wants to market it, without breaking the

bank,” explains Rohr. “We are offering distributorships in three different levels, all designed to fit into the budget, sales, and marketing operations of everyone from big national wholesalers to small local retailers.” As for the future, Rohr foresees nothing but possibilities. “I would really like to see this old company do things its original founders never even dreamed possible,” he says. “Who knows, maybe we will even take this old girl back home someday.”

ORNATE PATTERNS are just a few of the many moulding designs offered by the new McCloud River Lumber Co. August 2011 The Merchant Magazine

MARGIN Builders Bonding with Decking Contractors

Dealers rally to build decks for soldiers

Photo by Screw Products Inc.

of a veteran who was killed overseas last year would qualify for a deck build. It’s pretty amazing what we can do as an industry to say thanks! It’s a little thing that could make a big difference in this young woman’s life.

SALUTE: Wounded Afghanistan War veteran Staff Sgt. Marshall Diaz Jr. (far right) in Lacey, Wa., was the recipient of the Western Washington NADRA chapter’s first Deck for a Soldier.

ORTH AMERICAN Deck & Railing Association is behind a campaign to show appreciation for members of the armed forces by building them decks. The Merchant asked Heather Beaudry, NADRA’s membership, chapter and event coordinator, how lumber dealers can participate in the Deck for a Soldier program.

Merchant How are recipients selected? NADRA Military or family of military can find the application at www.nadra.org/nadra_d4s_application.pdf. They mail the application to NADRA headquarters. We then send the applications to the local chapter’s committee chair. The chapter reviews the applications and votes. Sometimes we get lucky and get a larger stack of applications, but other times locating a soldier is the most difficult part of the process. As the program grows, we are receiving more and more interest. Today, I spoke to a woman from a family assistance center in Minnesota who wanted to know if a widow

The Merchant Magazine August 2011

Merchant What role can a lumberyard or hardware store play in the program? NADRA Participants can be a NADRA member of any category. You might not be on the jobsite digging footers, but maybe you have office staff to help manage the scheduling or a marketing department to assist in the media end of things. This isn’t to say you can’t help on the jobsite, but each member has their own niche. The program has been very influential in chapters that just start up. It is a great way to get the team together, network, rub elbows, and build a deck—and camaraderie— using newer products donated by NADRA members. It’s a way to get your tools, products, services in the hands of all your local industry pros. We find many times that the chapter numbers grow during and after a build. NADRA makes a big effort to recognize every member who participates in the program. We recognize them on a national level, by creating signage for our booth at DeckExpo. We list all members who have been involved with the program on this signage. We also give shout-outs on NADRA’s Facebook, LinkedIn, the NADRA blog, The Brief (a weekly industry update for the decking industry from NADRA), and The BUZZ (an e-newsletter we send out from time to time). We encourage members to create their own press releases if they are involved in the program. We also have each chapter create their own recaps that we share in all our media outlets and on NADRA’s D4S webpage. Merchant What can they donate? NADRA The Deck for a Soldier (D4S) program is run under the NADRA umbrella, which is a 501(c)6, not a c(3), which is a charity. We try to make this as clear as possible when a build is in the beginning stages. Companies can use receipts for materials, etc., as a business expense, but they are not a tax write-off. Members have donated products ranging from the deck design, to composite decking for the entire deck, lumber for the framing, fasteners, railing, outdoor lighting, tools for the jobsite, permits, taking care of the bill for the D4S Tshirts, taking care of the bill for the ribbon cutting ceremony, grills, patio furniture, photography, landscaping, firepits, patio, Porta-Potty. During our last build in Building-Products.com

Washington, we even had a member vendor donate a bounce house for all the kids to play on during the ribbon cutting ceremony! Members donate the time of their employees, who help manage and maintain the project build and communications with the local member volunteers and different media outlets. We even have members use their own marketing teams to create flyers, press releases, and other various communications. Whether you want to oversee the project, donate your product, or get your hands dirty, there is a place for every member within this program.

Merchant Is there anything dealers can do to rally support from their contractor customers or decking vendors? NADRA Of course! Hang flyers in your store. Include the D4S build details and chapter meeting dates in your newsletters. Tell your deck builders about the ways they can help the industry, and how NADRA can help them. Although our goal with this program is to give back to the men and women who do so much for us and lose so much for us, you’re also getting to meet your top deck builders on very neutral ground. Builders can work with your local manufacturer reps on using new fasteners, railing, lighting, decking, learning the best installation, adhering to local codes. It’s a great feeling and an extraordinary experience for everyone involved.

Merchant How can dealers help promote the program? NADRA Helping use your PR resources is one of the best ways. The builders are busy doing what they do best: building! So, using these types of resources is the absolute best way you can help! Talk to your townships, let the community know what you are doing as a NADRA chapter. Contact your local VFW, host a local D4S committee meeting at a local restaurant, or find a local park and buy some pizzas. Add 30 minutes to the agenda for your sponsor to talk about a product. Invite your building officials and inspectors to the meeting to learn about what NADRA is doing and have them speak for 15 minutes. There’s a chance they may even waive the permit fee for you! – For more on the program, visit www.nadra.org. Building-Products.com

August 2011 The Merchant Magazine

COMPETITIVE Intelligence By Carla Waldemar

Full speed ahead

RECENT REMODEL at Minnesota building supply included colorful new signage inside…

HESE GUYS ARE either slow learners or more savvy than the rest of us. I’m betting on the latter. Kreofsky Building Systems, of Plainview, Mn., began life in the 1920s when Henry Kreofsky made a name for himself building hip-roofed barns in southeastern Minnesota. By the 1970s, his construction company had branched out into selling building supplies as well. Came the 1980s and a severe recession, which hit Minnesota farmers especially hard. So, right at the worst moment in its history, Kreofsky Services decided to split off its other function, which would become Kreofsky Supplies. Foolhardy? Maybe, agrees general manager Ken Kreofsky, Henry’s great-great-grandson and one of four brothers (two skipped out to Alaska) running the company. “But we made it through. We went back and forth over it, but decided to stay diversified. “The Rochester area was a great market. We did some commercial work, but it was mostly agricultural, and we still do: what we call ‘cow comfort stuff’—stalls, curtains,

The Merchant Magazine August 2011

mattresses, ventilation. And with that, everything it takes for installation. We’re known for our dairy projects. The small family farms are disappearing, but for those bigger farms, the survivors with two to three thousand cows, we’re there, from start to finish.” So, along comes another recession, and Ken opts, again, to forge ahead. “Last year, I took on everything; I piled it on,” he laughs (or was that a groan?). “We completely remodeled our Plainview store—inside, outside. New signage, new products, cleaner, brighter, a new flooring division in an underused area,” and the list goes on. “We also took on a new software system, which was not easy.” But the biggest project by far was opening a brand-new showroom in Rochester, 20 miles away. “Two reasons,” he explains. “One, I’d been asked, for years, for a bigger presence in Rochester, both by contractors and homeowners. Two, employees. Our outside sales force and I came to terms with their stipulation that we establish an office and showroom in Rochester. (I was all for it; I’d wanted to do it, anyway,” he confesses.) It handles windows and doors, decking, siding, millwork and cabinetry, and our two

… and out. Building-Products.com

NEW SHOWROOM shows off doors, cabinetry, and more.

installed programs: overhead doors, which we do in-house, and cabinetry, which we subcontract. Rochester is a good, upscale market, even in this economy”—predominantly white-collar, due to the Mayo Clinic and a strong tech company. It’s never been a walk in the meadow, however. “This is a very competitive market and always has been, one of the toughest in Minnesota,” Ken reports. Success is based primarily on Kreofsky’s employees, its G.M. insists. “I can’t say it enough. We hire based on personality, and they remain loyal—mainly, because” he says, when asked to speculate,” number one, we’re family-run and treat them like family, too. The door is always open—no need to pass off decisions to a distant corporate office.” Presently the workforce boasts 90 altogether, 40 in the supplies division, and there’s a hard-wrought (“took us six years”) succession plan in readiness for when it comes time for the many younger Kreofskys, and others, to fill the bosses’ shoes. Each division feeds the other but runs as a separate business. But having two separate divisions isn’t a costcutter, no indeed. “We can’t undercut; we’ve got to remain competitive,” Ken stresses. “But the conveniences of having everything in-house,” he underscores, “is great! Plus, we trade leads back and forth.” Building-Products.com

In Ken’s domain, 80% of customers are contractors working on custom houses; the remaining 20% consists of homeowners, drawn by its 10,000 sq. ft. of showroom space and an in-house interior designer. (For CAD drawings, simply visit the services division.) Rental equipment and a strong hardware program with Do it Best are among other customer services that add appeal. So is Kreofsky’s strong outside sales force—“the first in this part of the country,” Ken is allowed to brag. “We started it in the Eighties, when one of our owners visited a yard in Colorado and came home with the idea. These salespeople offer years of experience, and you know what? It’s really working. They call on jobsites, call on builders. It’s been a big plus for us” Those builders are delighted with the services of a boom truck, too—another first in this neck of the woods. (“Of course, everybody else soon followed suit.”) But in the end, it all boils down to what you already know, but we’ll say it again: service. “On-time delivery, quality products, and knowledge,” Ken reinforces. Not only does his staff continue in-house training in new products, but Kreofsky offers this training to its contractor customers as well, via a series of breakfast meetings that introduce six new lines a year. But the biggest annual event, by far, is the company’s contractor appreciation night—viewed by attendees (200 by invitation) and vendors (35). It’s also “one of the best in the Midwest,” thanks to a sit-down, white-tablecloth dinner, great door prizes, and unlimited fun. The company has turned to radio as its strongest investment in advertising, based on the advice of its ad agency’s recommendation, “It’s new for us, and it’s working out well, bringing in new people, “ Ken testifies. Kreofksy’s Internet presence is terrific, too, again thanks to advice they’ve gained from their marketing agency. Key was creating an attention-getting, work-horse website that has a “young” look. (Watch its YouTube message on www.kbscompanies.com.) The agency also designed a new, easily recognizable logo to serve both divisions and worked on branding. “We were doing some before, but kind of shooting from the hip,” Ken says. “They’re bringing it all together for us.” So, damn the economy, full speed ahead, to paraphrase a famous message. “We’ve cut back some, definitely, but we’re different from most yards,” Ken shares. “We saw it coming in 2008 and thus went for something to turn it around. It’s a cycle, and gonna go up. We’re familyowned, which makes us a fleeter ship; we’ve got control over it.” And Ken is more than happy at its helm. “Why do I like the business? Lemme tell you: When I was in my 20s, in the business for about four years, a vendor came in one day and I started wondering aloud if I’d be doing this all my life. ‘You know what?’ he said. ‘Once in the lumber business, always in the lumber business.’ And I’ve found that to be true. I love visiting with people, helping them figure things out.” Carla Waldemar cwaldemar@comcast.net

August 2011 The Merchant Magazine

OLSEN On Sales By James Olsen

Who’s on first?

XCELLENT SALES MANAGERS are rare. Many sales managers only manage the paperwork; they do not manage their charge, their team, or themselves. Many are the salespersons who get promoted, because they manage the company process better than their peers. This is a start, but just. In most organizations, the sales manager does the detail work the general manager doesn’t want to do which makes them an aide-de-camp to the GM and keeps them from leading their team.

Win First

The sales manager’s charge as a leader is to win. The (victim) mentality of many is “My team is weak, so I’ll do my best, but….” This mentality misses the point. In business we are paid to win—period. Educators have the luxury

of patiently teaching Johnny Slow or Suzy Unmotivated slowly. Business leaders do not. This is not to say that we don’t nurture and educate our team as we go, but our job is to win and, in most cases, rapidly. All teams are a reflection of their leader. If our team is weak, we are a weak leader. If we allow the lazy or unmotivated to stay on our team, we are a lazy and unmotivated leader. All else is whining and excuse making. One of the most important skills/jobs of a sales manager is the ability to attract and hire great salespeople. Just as salespeople must upgrade their account base (prospect), sales managers must upgrade their team.

Team First

Most sales managers get it wrong. Their title is made up of two words—sales and manager. Most take management’s side when they should see themselves as the leader of their sales team. Instead of “You guys need to…,” sales mangers must say, “We need to….” The number one (leadership) thing sales managers can do for their team is to sell alongside them. If your team

The Merchant Magazine August 2011

does not see you in a sales environment, they will not believe (in) you, that you understand them, or that you can sell. They will see (and feel) you as a BS artist who knows how to kiss up better than the rest and nothing more. Salespeople don’t resent your position—most don’t want it—but they do resent you telling them to “sell more” when they never see you selling and helping them sell. We must stay in the “we” mode with our team. It is about the team, not about us. The victory in sales is a team victory. Coming from a sales environment ourselves, it will be a challenge to share the wealth. Sales can appear to be an individual sport—I closed this guy, I need to get the order, but it cannot be I grew the team’s sales. It has to be the team grew the team’s sales. Great sales managers build a team that the individual seller feels proud to be a part of. Sales managers who take individual credit kill sales teams.

Me First

Our team is watching everything we do. How can we ask/demand they become better when we are not working on our game? Are we reading? Do we show up early? Do we leave late? Do we sell with our team? Do we want to win with all our heart and soul and, most importantly actions? If not, our team knows and their efforts will reflect this knowledge. No sales team will run through a burning building for a sales manager who is content. Working on Me First means working on me first, not “all the glory for me first.” Sales managers who put themselves before their team will turn around some day to find no one following. A leader without followers is nothing. How can we say, Win First, Team First, Me First? Doesn’t one of them have to be the real first? This is applying linear thought to a multi-faceted challenge. To be great leaders, we must be able to manage multiple, ongoing and parallel strategies. Much like the Trinity in Christianity, these strategies are one in the same and can not be separated. Managers who try to simplify their jobs by emphasizing one of the firsts over the others will fall short. Those who embrace the multi-facetness of sales management will stand out from the crowd and will succeed.

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

Building-Products.com

GREEN Retailing By Jay Tompt

The new paradigm: Zero-carbon shelter

N THIS INDUSTRY ,

there are three areas of opportunity that remain relatively bright given otherwise stagnant economic conditions. Obviously, one is green building. The other two are renewables and retrofits. These three areas are deeply interrelated and will continue to grow. Dealers who ignore this fact, waiting for the old days to return, do so at their own peril. On the other hand, given the buoyant performance of these sectors, dealers that incorporate one or more of these areas will likely thrive. The question of how to go about approaching these opportunities remains. Clearly, the pursuit of these opportunities must eventually translate into products on the shelf, retail floor or yard, or in services. Should dealers expand current categories, diversify into new categories, or streamline operations down to one speciality? All good questions every dealer must judge, based on their own set of circumstances. But even more fundamental, dealers must once and for all abandon the old “sticks and bricks” paradigm and adopt a new way of thinking about their businesses. I mentioned above that green building, renewables, and retrofits represent the brightest sectors in the supply chain. At the core of each is energy consumption and/or the generation of energy from carbon-free and renewable resources. In fact, what they represent is the new paradigm that will dominate this industry for the rest of the century: zero-carbon shelter. When dealers comes to grips with what that means in terms of the products and materials they stock, the services they provide, and what their customers need, the proverbial LED lightbulb goes on and the path forward is illuminated. Translating the “zero-carbon” view into products and services that may benefit dealers and their customers becomes straightforward. For example, analysts project that demand for insulation and installers is going to grow by leaps and bounds in the coming years, whether or not new homes are built. The existing housing stock—millions of homes—will remain standing and occupied for decades to come and most need improved insulation in order to sur-

The Merchant Magazine August 2011

vive rising heating and cooling costs, especially in the context of weather extremes. There are many formaldehydefree, recycled, and natural products already on the market that can be stocked or drop-shipped. Big companies like Johns Mansville, Knauf, and Bonded Logic provide a range of these products and will serve the needs of production builders and retrofitters. For those looking for natural products, smaller companies such as Oregon Shepherd and their wool insulation, or Ecovative Design and their rigid-panel Greensulate products made from mushrooms, can round out the insulation merchandise mix. Even if demand for insulation is apparently strong, it doesn’t hurt to have to the tools to sell it. Thermal imaging cameras, such as those from Leica and Flir, can be used to create a picture of where a house is leaking valuable heat. This technology is indispensable for installers and retrofitters, and should be for dealers, too. Stock these devices: sell, loan, or rent them, and sell more insulation as a result. There’s much more that goes into zero-carbon shelter and many more opportunities to expand, diversify, or specialize. In the building shell, super efficient windows and doors are important energy-conserving components. Inside, LED lighting and ground source heat pumps can also be part of a zero-carbon building system; on the roof, thermal solar, and PV. Of course, sticks and bricks will remain part of the picture, even though the context has now changed. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com Building-Products.com

DEALER Briefs

Dunn Lumber Co. opened a new store on a 5-acre site in Mill Creek, Wa., it will share with Parker Lumber Co., which Dunn acquired in late 2009. HOME Center, Heber, Az., held a July 2 grand opening for the new showroom at its 8-month-old Payson, Az., branch.

Ace Hardware opened an 8,750-sq. ft. store Aug. 3

Kamas, Ut.

R. Ace Hardware, Lompoc, Ca., is closing after 11 years, with the retirement of owners Richard and Nora Harrison. Liquidator Wingate Sales Solutions expects to sell the last of the merchandise and close the doors by Sept. 4. Ace Hardware opened a 23,000-sq. ft. store July 19 in

Billings, Mt., owned by Skip King and Jeff Averill, who also serves as mgr.

Sharps Ace Hardware, Hemet, Ca., is liquidating after 65 years. Tim Heffley, owner since 1995, expects to close in early September.

San Manuel Do It Best Hardware, San Manuel, Az., recently added U-Haul truck and trailer rentals.

Habitat for Humanity is moving its ReStore discount LBM outlet in Medford, Or., to a larger facility and is opening a new 10,000-sq. ft. store in Issaquah, Wa.

The Merchant Magazine August 2011

ProBuild Closing Regional Offices

ProBuild Holdings reportedly will close its regional offices and consolidate support operations, including marketing and human resources, at its corporate headquarters in Denver, Co. The regional centers—located in Winona, Mn.; Tulsa, Ok.; Moorestown, N.J.; Kennesaw, Ga., and Lacey, Wa.— are expected to be closed by the end of this year. Reports are that some regional staffers may remain. At Midwest headquarters in Winona, for example, ProBuild is expected to cut back from two office buildings to one, where IT and supply chain personnel may stay on. The closures are planned to have no effect on ProBuild’s 470 LBM distribution, manufacturing, and assembly centers in 42 states.

Bohnhoff Gunman Convicted

A 53-year-old man who shot and killed his boss and a co-worker at Bohnhoff Lumber Co., Los Angeles, Ca., two years ago has been convicted of two counts of first-degree murder. Saul Gastelum Moreno was found guilty of killing Charles Alan Bohnhoff, 55, and yard foreman Jaime Sanchez, 31, after refusing to fill a lumber order. Charlie Bohnhoff, Alan’s father, cradled his dying son in the office where he was shot. He later found the mortally wounded Sanchez in a shed. Co-workers described Moreno as a skilled certified lumber grader who could be distant and temperamental and prone to leaving work for weeks. Sentencing is scheduled for Aug. 16, when he could face life in prison without the possibility of parole.

Building-Products.com

New LEED Pilot Credit Accepts SFI

The U.S. Green Building Council has launched LEED Pilot Credit 43, which awards a single point for nonstructural products and materials— including wood used in flooring and windows—certified under a range of systems. The Sustainable Forestry Initiative applauded the new credit as a “step in the right direction” because it recognizes all credible forest certification standards, including SFI, ATFS, PEFC, CSA—in addition to certification by the Forest Stewardship Council. The credit rewards greater transparency and knowledge about product life cycles. “We want LEED buildings to have more products that we know more about, and fewer products that we don’t know very much about,” said Brendan Owens, vice president of LEED technical development. He collaborates with volunteer technical committees to evolve and refine the LEED Green Building Rating System. To gain the point, participants must specify and install qualified products and materials for a weighted value of at least 10% of the total value of all

non-structural products and materials used in the project. Wood purchased for temporary uses—such as formwork, bracing, scaffolding, guardrails, etc.—would not be included. Pilot credits are used to tests ideas before they become an official part of LEED, so many in the industry hope that this new credit represents a first step to recognizing the use of structural wood certified by groups other than FSC. The fact that the next LEED rewrite is underway also gives them hope that the new credit could be included for vote by USGBC members. “Since so much attention has been focused on wood, other industries have been able to fly under the radar,” said Owens. “They could take a lesson from the wood industry, which has done so much to document how wood is grown, harvested, and processed.”

Tum-A-Lum Buys Competitor

Four-unit Tum-A-Lum Lumber Co. has purchased ProBuild’s lumberyard in The Dalles, Or., and will consolidate its local operation at the newly acquired facility.

“This is an excellent opportunity for Tum-a-Lum that will provide the company with a larger, more modern and efficient facility to help us better serve our customers, and allow us to increase our market share,” said general manager Mike Darby. “We look forward to serving our new and existing customers from the integrated location in The Dalles.” Tum-A-Lum has had a location in The Dalles since 1910.

Colorado Lumber Family Opens Local Ace Hardware

The owners of Sierra Vista Lumber, Alamosa, Co., opened a 14,000-sq. ft. Ace Hardware Superstore July 19 in a former Kmart building. “Alamosa used to have an Ace Hardware store, but it closed down,” said Rosalie Martinez, who owns Sierra Vista with husband Leroy. “We missed the store and a lot of others did, too. So, we thought we could see if we could open a store. It is a long process, and we’ve been working on it for a little while, but it finally materialized this summer.” Martin Villava is manager of the new store.

Hampton Restarts Warrenton Mill

Hampton Affiliates, Portland, Or., has completed upgrades to its sawmill in Warrenton, Or., and planned to restart the facility August 1. Hampton idled the mill soon after acquiring it from Weyerhaeuser in January 2010. “The timing is not ideal because the market is so poor,” said c.e.o. Steve Zika. “We have put a lot of investment into the plant, so we feel pretty comfortable with the log supply there, from Hampton timberlands and state of Oregon public lands.” The company said that it has invested millions of dollars to make the sawmill competitive, through improved productivity and recovery. New environmental controls will dramatically reduce green house gas emissions, compared to the mill’s previous operation. The facility will produce kiln-dried hemlock and Douglas fir lumber for the export and domestic markets. The mill will initially employ about 100 workers. “We will eventually go to two shifts, and at that time we will hire another 75 people,” said Zika. “That could be a year or more, depending on the market.”

Plum Creek Buys Southeast Tracts

Plum Creek Timber Co., Seattle, Wa., agreed to pay $75 million to buy 50,000 acres of timberland in Georgia and Alabama from Forestar Group, Austin, Tx. The deal is expected to close by the end of the third quarter. Of late, Forestar has inked deals to sell about 166,000 acres of timberland in Georgia, Alabama and Texas for a total of $270 million, allowing it to pay down debt by more than $120 million and repurchase over 1 million shares of stock.

SUPPLIER Briefs

Trussed, Inc. , Perris, Ca., inked a deal with Eco Building Products, Vista, Ca., to produce its patented

Smart Component prefab shear wall components with Red Shield coatings.

Capital Lumber , Phoenix, Az., has purchased the assets of Snavely Forest Products’ branch in Chandler, Az., and will consolidate operations at its Phoenix facility. Pittsburgh, Pa.-based Snavely continues operating eight distribution centers, including what is now its western-most branch in Denver, Co. Capital has also begun distributing CertainTeed Cedar Impressions polymer shake and shingle siding.

iLevel by Weyerhauser’s distribution centers in Santa Clarita and Fontana, Ca., are now carrying Versatex trim products. iLevel’s new Stellar 2011 v4.3 fabrication software converts framing plans into detailed instructions for automated saws and fabrication equipment, batches jobs, enables more efficient production runs, and makes better use of short drops. And, its Forte sizing software notched its 10,000th user. Carlisle Construction Materials will build its seventh polyisocyanurate insulation plant by third quarter 2012 in Frederickson, Wa.

The California Redwood Co., Eureka, Ca., has added Dream Builder, a 3-D design tool, to its website, www.californiaredwoodco.com.

operations. “We’ve been working all winter long to build up inventory,” said partner Jim Willmore.

ProBuild Vet Buys Steel Products Manufacturer

RICHERT LUMBER CO. recently held a grand opening celebration, attended by the local Chamber of Commerce, to show off the new 50,000-sq. ft. drive-thru warehouse at its 5-acre yard in Pleasanton, Ca. The company is also celebrating its 35th anniversary this year.

nearby shop. Firefighters from three departments prevented the spread of the fire to other areas of the mill. “We’re all well and alive and nobody’s hurt—it’s all material things,” said co-owner Rod Willmore. “A lot of people in the community came and helped move equipment.” The company plans to rebuild its

Idaho Mill Devastated by Fire

Authorities are still seeking the cause of a July 24 blaze that caused about $1 million of damage at Willmore Lumber Co., St. Anthony, Id. The fire completely destroyed the building where the planing mill operation was housed and damaged a

Wholesale Industrial Lumber

REEL

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www.reellumber.com 26

The Merchant Magazine August 2011

Paul Hylbert, who resigned as ProBuild’s chief excutive last summer, has partnered with Boreas Advisors LLC to purchase Barton Supply, a Colorado supplier of structural and reinforcing steel products and accessories. “We are pleased to be partnering with Barton Supply as a committed, long-term investor,” said Hylbert. “Scott Barton will continue to head our sales and marketing efforts as vice president of sales, and Don Barton will lead manufacturing and distribution as vice president of operations.” Hylbert will serve as chairman, while Steve Swinney, managing partner of Boreas Advisors, will serve as c.e.o. Founded in 1973, Barton Supply has locations in Aurora, Colorado Springs, and Fort Collins, Co. Hylbert and Boreas Advisors partnered earlier this year to invest in companies related to housing and building products.

t Reel Lumber Service, we supply domestic and foreign hardwoods. Our products and services include: • Hardwood Lumber & Pine • Hardwood Plywood & Veneers • Melamine Plywood • Hardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech) • Milling (moulding profiles, S2S, SLR1E, SLR2E, & resawn lumber) • Woodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc.) • Woodworking Supplies (deft finishes, color putty, adhesives, etc.)

ur products are widely used in interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of complementary products to complete virtually any woodworking or millwork project.

Building-Products.com

84 Seeks to Pump Up Retail

84 Lumber will remodel 70 of its stores—in mostly rural areas far from big boxes—to be more consumer friendly, but insists it isn’t forsaking its contractor base. “Clearly, it’s not an abandonment of what we’ve been doing for the past 20 years; it’s to address where the market is now,” said spokesperson Jeff Nobers. “It’s a more open, brighter, and friendlier environment to walk through.” The remodeled stores will have kitchen and bath design centers, door displays, plus decking and railing. Other new features are aisles of basic items such as painting supplies and plumbing fixtures, as well as gas grills, potted plants, sheds, and backyard gyms. 84 Lumber hopes the changes will increase its retail customer sales, which currently total about 10% of its income. “You don’t want to walk away from 10-20% of your market at any time, but especially not at a time when everybody is fighting for every dollar that’s out there,” said Nobers.

Do It Best Introduces Contractor Incentive Program for Members

Do it Best Corp. is partnering with TIMBR, Norwood, Ma., to custom-design and manage contractor performance incentive strategies for its members. The new Contractor Pro Rewards Program allows contractors or salespeople to earn points based upon achieving member-defined goals. Points can then be redeemed for thousands of rewards, including electronics, sporting goods, sporting event tickets, jewelry, vacations, and travel. “Contractor Pro Rewards will enable our members to offer contractor incentive programs that meet each of their unique needs,” said Quent Ondricek, Do it Best v.p.-lumber & building materials. Individual stores choose their own earning structures, communication campaigns, and rewards.

Slide in Home Improvement Likely to Continue into 2012

After showing signs of recovery, spending on home improvements is expected to remain volatile and weak over the next several quarters, according to the latest Leading Indicator of Remodeling Activity by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard Univer-sity. The indicator projects that annual remodeling spending through the first quarter of 2012 will be down 4%. The Census Bureau’s improvements spending series, to which the indicator is benchmarked, was recently revised downwards as well. “The recent slowdown in the economy has caused home improvement spending to weaken again,” said Eric S. Belsky, managing director of the Joint Center. “Falling consumer confidence levels have undermined interest in discretionary remodeling projects.” “What looked to be a promising upturn in home improvement spending earlier this year has begun to stall,” added Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Housing starts, existing home sales, and house prices have all been disappointing lately, which has dimmed prospects for home improvement spending gains this year.” Building-Products.com

August 2011 The Merchant Magazine

STANDARD STRUCTURES’ Karl Garai, truss manager, stands beside the engine that recently delivered lumber to the company’s facility in Windsor, Ca.

Rail Line Resumes in No. California

Closed since 2001 due to storm damage, Northwestern Pacific Railroad is once again offering freight service in California’s Marin, Napa, and Sonoma counties. The new service makes one round-trip, three days a week, on Mondays, Wednesdays, and Fridays. “We can ship from our own location and still connect with the national rail system,” said Dick Caletti, president of Standard Structures, Windsor, Ca. “This will make us

The Merchant Magazine August 2011

more competitive as we ship to markets beyond the Rockies.” He added that Standard Structures plans to offer the use of its rail spur to other companies, such as a major lumber company in the North Bay, “to load, unload, and store their goods at our site for up to 48 hours for a fee that could range from $300 to $400. Our existing spur line is 1,100 ft. long, plus an additional 700 ft. from a switch to the main line—enough capacity for 12 railroad cars or more.” Experts estimate that cost savings associated with rail shipments can be as much as 50% per ton, since one rail car has the capacity to replace four trucks. For this reason, Shamrock Building Materials is considering adding a rail spur to its location in Santa Rosa, Ca., so it can receive rail shipments. “For a decade Marin and Sonoma have been the only Bay Area counties without freight rail service,” said Caletti. “How can we attract new business and improve the economy without it?”

Copper Thieves Strike Shuttered Mill

Two men were arrested on suspicion of stealing copper wire and other valuables from Sierra Pacific Industries’ shuttered mill in Camino, Ca., on July 23. Donald Henstra, 40, and Scott Folsom, 42, both of Sacramento, Ca., were arrested after a foot and canine pursuit that began when they crashed their vehicle in woods north of the mill and fled. Both men were booked into El Dorado County Jail for burglary, possession of stolen property, and resisting arrest. Folsom’s bail was set at $1,070,000, Henstra’s at $55,000. Sheriff Edward Falkenstein said it was the second bur-

Building-Products.com

glary in a month at the mill, which closed two years ago. Thefts of copper and other metals have been on the rise nationwide.

Store Targets Taste Buds

Lunada Hardware, Palos Verdes Estates, Ca., has a mouth-watering way of enticing repeat business. Owner Larry Allen keeps a supply of snacks for children and treats for dogs behind the counter. “People walk by with their dogs and the dogs pull them in to get the snacks,” Allen said. “Then we have treats for the kids. If you keep the kids happy, if you keep the dog owners happy, they’ll come back.”

Mill Settles Harassment Suit

Two former employees of Mason County Forest Products, Shelton, Wa., have settled a sexual harassment suit against the company for nearly $1 million. The two women said they sued because their employer did nothing, even after years of complaints over such alleged abuse as hearing sexually charged comments and insults, seeing pornography and sexual graffiti placed in the unisex porta-potties, and being locked in the porta-potties. “I am grateful that when no one else would listen, the EEOC and the justice system did,” said one of the plaintiffs, Debbie Bernstein. “I hope this makes other women more willing to come forward with complaints.”

Landscaping Products Dig in For Healthy Growth

U.S. demand for landscaping products is projected to increase 7.6% annually through 2015, as sales register a sharp turnaround following a depressed 2010, according to a new Freedonia Group report. Concrete products and other hardscapes will see the fastest growth, while decorative products—such as lighting and water features—remain the largest segment of the $4.1 billion U.S. landscaping products market.

Conference Helps Market Colorado Forest Products

The Colorado State Forest Service will host a Forest Products Marketing Conference Aug. 18-19 at Denver Marriot West, Golden, Co. The program’s goal is to help forest and wood products businesses better understand the marketing fundamentals needed to promote their products and services. Building-Products.com

Presenters include foresters from CSFS’ Colorado wood utilization and marketing program, marketing professionals, and environmental business consultants, addressing regional wood products trends, the fundamentals of marketing wood products, current biomass energy policy, and understanding an increasingly green customer base. “In many small businesses, marketing often is talked about, but never fully implemented,” said Tim Reader, CSFS utilization and marketing forester. “We want to take some of

the mystery out of marketing and give our forest products businesses the tools they need to increase their bottom line and help them compete better against out-of-state competition.” The event is free for members of Colorado Forest Products and $50 for non-members. Registration includes attendance to all conference sessions, a USB flash drive containing conference PowerPoints, a Forest Products Business Planning Guide, lunch and snacks. Vendor space is available for groups interested in displaying relevant products and information.

Old World Craftsmanship In Today’s Designs

Hand Hewn Distressed Timbers Geo. M. Huff Lumber Company is now offering Hand Hewn Distressed Timbers in a variety of sizes, shapes and lengths. All our distressed beams are WCLIB grade stamped and will meet structural and architectural applications. All are hand tooled and can be ordered with custom stains and Old World finishes. We can supply timbers to any specification, whether it is Dense, Free of Heart Center, #1/Btr, Select Structural, Green or RFV Kiln Dried. When a plan calls for exposed posts and timbers, count on us to provide you with a product that will last a lifetime. Combine our selection of Douglas fir timbers along with our skilled milling staff and you’ve got one of the best resources in Southern California.

HUFF LUMBER COMPANY SANTA FE SPRINGS, CALIFORNIA

800-347-4833

August 2011 The Merchant Magazine

MANAGEMENT Tips By Danita Johnson Hughes

Lead your company through major change

HESE DAYS,

it seems that the words “business” and “change” go hand in hand. From dealing with regulatory changes and economic shifts to responding to new customer demands and emerging technologies, sudden and externally mandated changes affect organizations of all sizes. When change is forced upon you, making the shift is often more stressful and more difficult than when you thoughtfully decide to take your organization in a new direction. After all, making a change that you plan for is exciting and filled with opportunity, while making a change due to outside forces putting pressure on you is filled with risk and unpredictability. Unfortunately, most organizations resist these externally mandated changes and are slow to respond. They fear the risk involved, and as a result they miss many opportunities. Change under external circumstances is scary because you often don’t know if the changes you’re making are going to work. Additionally, the change may mean you have to alter your company’s values or culture, and those sorts of changes don’t come easy. The fact is that embracing any type of externally motivated change requires both courage and planning. Following are some suggestions for making the change process easier and more successful.

• Assess your company’s current talent potential.

When dealing with externally moti-

The Merchant Magazine August 2011

vated change, a good leader needs the emotional maturity to maximize and leverage the strengths of the people within the organization. Depending on the size of the company or department, you may not have daily contact with those you lead. Therefore, take the time to go back and assess who you have working for you and what skill sets they have. Chances are some will have developed new skills and strengths since they were originally hired. Therefore, determine how the company can best use the people you already have to make the change sucBuilding-Products.com

cessful. Most people overlook the talent that’s right under their nose and think they need to look outside for the skills to best move the company forward.

• If you do need outside talent, hire people who know more than you do.

Many times, those charged with hiring people don’t want to hire anyone who is strong, assertive, or more knowledgeable than they are. They think these new hires will make them look bad—or even worse, take their job. In reality, if you hire people who are strong and know more than you do, you’re going to fare better during the change process. Realize that when the organization does well, everyone looks good, not just one person. However, if the organization fails, people typically look for one person to blame—usually the leader. The only way your company can sustain its momentum during and after the change is to have strong people on board.

• Create an environment that encourages continuous learning.

The knowledge you and your people possess has long-term value for the organization. If you stop learning, you stop having the ability to contribute to the continued development of the organization. Learning is vital, because things change so quickly— technology changes, the industry changes, the marketplace changes, etc. You have to keep up and know what’s state-of-the-art to stay relevant to customers. Therefore, encourage your staff to attend seminars, read books, stay abreast of industry news, and seek internal feedback and mentoring. The more learning opportunities people have, the more valued they’ll feel, and the more they’ll want to contribute to the change process.

• Hold people to their commitments.

No change will ever be complete if people abandon their responsibilities midstream. That’s why you need to hold people accountable for what they commit to. To do so, first make sure they have the skills needed to do the job. If they don’t, there’s no way they’ll be successful. Then you need to monitor their progress and evaluate how they are contributing (or not contributing) to Building-Products.com

the change process. Realize that monitoring doesn’t mean micromanaging. It simply means keeping the pulse of the whole work flow to ensure all the pieces of the process fit together and are getting done. When you find that someone isn’t contributing effectively, you must be willing to confront the person and deal with the problem in a constructive way that gets the work back on track.

• In messaging, be clear, consistent, and continuous when communicating the vision and goals.

You have to be clear and consistent about the change, about what’s occurring, about what needs to occur, and about the vision and goals for the company. Spell out where the company is going as well as the plan to get there. When you are not clear and/or consistent, your message gets garbled and people don’t understand it. That’s when problems happen and change becomes risky. You think you’re communicating one thing but no one understands your real message, so they pull in a different direction. That’s why you must make sure everyone is on the same page. Also, don’t just relay the message once: you have to consistently revisit it and make sure everyone is still on board. Allow people to ask questions and, if possible, to contribute to the message. People buy into an idea more easily if they feel they took part in shaping it. Change that’s mandated from outside factors is often uncomfortable, but this doesn’t mean it’s a bad thing. In fact, when approached correctly, this sort of change can open your eyes to new possibilities, new customer bases, new revenue streams, and even new product and service offerings. So tackle these externally influenced changes proactively and you’ll have the upper hand. Not only will you fare better than your competitors during the change, but you’ll also emerge as the marketplace leader. And that’s one change you definitely want to occur. – Danita Johnson Hughes, Ph.D. is a healthcare industry executive, public speaker, and author of the forthcoming Turnaround. Contact her at danitahughes@edgewatersystems.org or via www.danitajohnsonhughes.com.

August 2011 The Merchant Magazine

MOVERS & Shakers Jessica O’Rourke, ex-Lumber Products, has joined Heico Distribution Group, El Dorado Hills, Ca., as an outside sales rep-specialty products for Northern California. Bill Myrick has left ProBuild Holdings, Denver, Co., after one year as c.e.o. and president. Fred Marino is serving as interim c.e.o. until a permanent successor is found. Jim Cavanaugh, president of operations, is also leaving the chain at the end of the month. Marlon Hewitt is now senior business analyst-supply chain. Mike Dubeau, ex-Peninsula Paint, has joined Hartnagel Building Supply, Port Angeles, Wa. Chris Frazeur is now inside sales EWP coordinator at Huttig Building Products, Tigard, Or. Jeff Mancuso, ex-Continental Hardwood, has been named sales mgr. of Contact Industries, Portland, Or. Joseph Magoffin has joined the sales force at BlueLinx, Denver, Co. Monica Machon has been named marketing mgr. for Reid & Wright, Broomfield, Co.

The Merchant Magazine August 2011

Jon Gould, ex-Automated Structures, has rejoined Stock Building Supply, in outside truss sales, based in Roy, Ut. Donald Lackey has joined Capital Lumber, Healdsburg, Ca., as an account mgr. Craig Smalley is a new marketing specialist, and Nicole Giordano is new to sales support in the national accounts division. Benjamin Flach has been named v.p.information technology for TruStile Doors, Denver, Co. Francisco “Ponch” Flores is a new buyer at Orchard Supply Hardware, San Jose, Ca. Thom Chappell is now assistant general mgr. of Home Depot’s distribution center in Lacey, Wa. Gary Hoffmann has been promoted to national advantage program mgr. at Do it Best Corp., Fort Wayne, In. Marty Bailey is now leading the co-op’s World Class Commerce Center initiative. Tyson Palmer is new to sales at Pacific Western Wood Works Ltd., Delta, B.C.

Todd Baxter has joined Idaho Pacific Lumber, Boise, Id., as Columbus, Oh.-based account executive serving the Midwest and East. Scott Vander Meulen is a new inventory planner at True Value Co., Chicago, Il. Dale MacLean has been appointed president, c.e.o., and trustee board member of Tree Island Industries, Vancouver, B.C. Chris Shadday has been named president of Viance LLC, Charlotte, N.C., succeeding Steve Ainscough, who is retiring. Robert J. “Bob” Baeppler has joined Arch Wood Protection, Atlanta, Ga., as business mgr.-Chemonite products, based in Sunbury, Oh. Matthew J. Missad has been promoted to c.e.o. of Universal Forest Products, Grand Rapids, Mi. Don James is now head of national sales. Joseph Granger is executive v.p. of its Universal Consumer Products and UFP Distribution divisions. Greg Antle, owner, GMA Cascade International, Langley, B.C., has

Building-Products.com

been elected to the Western Hardwood Association board. Abner Mallady is now charting lumber price trends for MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

IN Memoriam

and sash business in 1937. Soon after, he teamed with Oliver Arvold to open a lumberyard, running its mill until he retired and converted the property into a shopping center in 1969. Emma Walker McCrary, 80, a member of the family that owns Big Creek Lumber, Davenport, Ca., died

June 24 from complications of pancreatic cancer. Mrs. McCrary’s husband, Homer T. “Bud” McCrary, is a co-owner of the family business. She was active in local horse associations and hosted annual rides on the miles of trails she cut on the family’s property.

Dan A. Green, 88, retired owner of Reed Mill Lumber, Denver, Co., died July 15 in Broomfield, Co. He served in the Pacific during World War II, with the Army’s 311th Troop Carrier Squadron, before earning a master’s degree in forestry at Colorado A&M. From 1949 to 1950, he worked for Western Crossarm. He later worked at Western Wood Preserving and owned Reed Mill Lumber from 1970 to 1996. Samuel Earl Robinson, 92, owner for 57 years of Robinson’s Builders Discount, Sutherlin, Or., died July 23. Gordon Frank Maxfield, 94, longtime manager of Copeland Lumber Yard, Oregon City, Or., died July 3 in Lynnwood, Wa. He served in the U.S. Army Air Corp during World War II. He worked in lumber sales in the Northwest before joining Copeland.

Gottfried M. Stonitsch, 95, coowner of Stonitsch & Arvold Lumber Co., Petaluma, Ca., died July 20. He apprenticed with a local cabinet maker before forming his own cabinet

Superior Service, Products & Support 100% of the Time

Distributed By

P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288

(541) 535-3465 • www.normandist.com

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August 2011 The Merchant Magazine

by 20 mph winds, the flames spread to other bins. The blaze severely damaged sections of the converyor belt, while firefighters had to chop into the conveyor housing system to get their water hoses inside.

Fire Strikes Dillard Sawmill

Roseburg Forest Products’ milling complex in Dillard, Or., suffered a July 9 fire in its sawdust silos. According to fire officials, a conveyor belt that carries sawdust through the silos caught fire. Aided

Quality Manufactured Forest Products at Competitive Prices, including FSC-certified Western Red Cedar and Hemlock.

SUPPLIER Briefs

Simpson Strong-Tie, Pleasanton, Ca., has added products from Feeney Inc. , Oakland, Ca., to its DeckTools sales and design software partners’ library.

Swanson Group, Glendale, Or., is sponsoring its annual Christmas Golf Scramble Aug. 13 in Grants Pass, Or., to benefit local needy families. The event includes golf, food, beverages, contests, prizes and awards. Contact Bob Maurer at (541) 832-1666 or bob.maurer@swansongroup.biz.

SierraPine Ltd., Roseville, Ca., Noble Environmental Technologies Corp. ,

is partnering with

San Diego, Ca., on new co-branded panels, combining SierraPine’s MDF and particleboard products with Noble’s ECOR composite materials.

Roseburg Forest Products,

Surrey, BC • fax 604-531-7581 • crawfordcreek@shaw.ca

604-531-7588 • www.crawfordcreeklumber.com

HARDWOOD • • 4 DECKING MOULDING S S • LUMBER • PLYWOOD

Moulding –

Hardwood S4S –

• Over 200 stock profiles • Custom knife grinding

Glued-Up Panels – • Our Rosenquist radio frequency gluer can fabricate glued-up solid wood panels up to 48” wide. Sanding up to 53” wide.

Stocking a large inventory of • Hardwood S4S – 1x2, 1x4, 1x6, 1x8, 1x10, 1x12 2x2, 2x4, 2x6, 2x8, 2x10, 2x12 • Redoak • Hard Maple • Soft Maple • Mahogany • Cherry • Poplar • Birch • Walnut

Hardwood Plywood & Lumber – • Consult website for full inventory Since 1980

5700 Earhart Ct., Windsor Ca. 95492

www.MountStorm.com Phone 707.838.3177 • Fax 707.838.4413 • Mill Fax 707.838.9690 We ship full trucks, units and deckpacks anywhere in the western U.S.

The Merchant Magazine August 2011

Roseburg, Or., shuttered its particleboard plants in Russellville and Orangeburg, S.C.

Arch Wood Protection parent Arch Chemicals has agreed to be acquired by Lonza Group of

Switzerland, in a $1.4-billion cash-forstock deal. Lonza’s offer represents a 37% premium to Arch’s latest share price.

CertainTeed is offering RealScape 3D software for use with its Bufftech vinyl fence line and Big Hammer Pro Deck Design software for use with its EverNew decking and railing products. The manufacturer has also expanded the color palette for its Wolverine Encore vinyl siding and added two new colors (Castle Gray and Tudor Brown) to its EverNew PT decking line. AZEK Building Products

earned NAHB Research Center’s Green Approved Product seal for its trim, mouldings, decking and porch lines.

Crane Composites fiberglass reinforced plastic panels have earned GREENGUARD Children & Schools and GREENGUARD Indoor Air Quality certification. Ace Paint unveiled its first all-inone primer/paint, Clark + Kensington.

Building-Products.com

NEW Products

Smog-Eating Tile

Grout Showcase

A new pocket-sized fan deck shows off Laticrete’s 40 grout colors. Each hard-plastic color strip is textured to simulate a finished grout joint. Users can place strips between tiles for a nearly true representation of the finished application.

LATICRETE.COM (800) 243-4788

Hot Water on Demand

A tankless water heater from AHI saves energy by providing hot water on demand. Unlike other models, the AHG-T42 installs on standard 1/2” gas or propane supply lines. An oxygen-free copper heat exchanger and digital controls allow users to control hot-water consumption and conserve water.

New concrete roof tiles from MonierLifetile speed oxidation to reduce air pollution and smog. Smog-Eating Tile incorporates titanium dioxide to break down nitrogen oxide, which is generated by burning processes and street traffic.

BORALNA.COM (800) 571-8453

DEMANDWATERHEATERS.COM (877) 662-6457

Universal Skirt

Deck Design Software

DeckTools 3.3 software from Simpson Strong-Tie allows users to design custom decks in a photo-realistic, 3D environment. Recent upgrades include an enhanced user guide with drawings, a tape measure tool, and straight run layout options for railings. The software can also generate estimates, proposals, plans, and takeoffs.

STONGTIE.COM/DECKTOOLS (800) 999-5099

Building-Products.com

Constructed of cellular PVC, the universal skirt board from AZEK provides a transition between siding and trim. The two-piece board works with a variety of siding materials, including fiber cement, vinyl, and wood shingles. Two sizes (5/4x6 and 5/4x8) are available in 18” lengths, with a 1-1/2” nailing flange and 1/4” drip-edge overhang.

AZEK.COM

(877) 275-2935

August 2011 The Merchant Magazine

Fossilized Stone

Bluestone porcelain tile from Crossville contains 20% certified recycled content. Each tile is enhanced by fossil-like impressions and embedded shells. Four colors (Colorado buff, Pennsylvania blue, Arizona brown, and Vermont black) come in a variety of sizes, including field tiles, mosaics, and trims.

Smarter Paint Tray

PaintSmart Trayz can hang vertically on extension ladders or horizontally on stepladders. The reusable tray can hold up to 2 qts. of paint and has hooks for brushes, slots for paint rollers, and a twist-cap drain for removal of excess paint.

PAINTSMARTTRAYZ.COM

CROSSVILLEINC.COM

(561) 714-4658

(800) 221-9093

VAN ARSDALE-HARRIS LUMBER CO. 595 Tunnel Ave., San Francisco, CA 94134 • 415-467-8711 • Fax 415-467-8144

www.vanarsdaleharris.com

Since 1888

Specialists in upper grades of clear, dry softwoods

Douglas Fir C & Better V/G & F/G Kiln Dried Full Sawn Rough • 1", 5/4", 2", 3", 4", 6" & 8x8 • 3x6 DF Select Dex Double T&G Decking Sugar Pine • 4/4 -16/4 C & Btr. • 5/4 & 8/4 D Select • 6/4 & 8/4 Mldg. • 5/4 #1 Shop • 5/4 x 12 #2 Common • 4x4 #2 Common Ponderosa Pine • 4/4 Clears, Moulding, #3 Clear, Commons • 2x4, 2x6, 2x12 Std. & Btr. Dimension Western Red Cedar Clear V/G & F/G Full Sawn Rough • 1", 5/4", 2" Kiln Dried • 3", 4", 6" Air Dried Timbers Alaskan Yellow Cedar C & Btr. Kiln Dried Rough • 4/4, 8/4 Poplar, FAS • 4/4, 5/4, 6/4, 8/4, 12/4 Sitka Spruce B & Btr. V/G Kiln Dried Rough • 4/4, 8/4 Honduras Mahogany, FAS Pattern Grade • 4/4, 5/4, 6/4, 8/4, 10/4, 12/4, 16/4

TREATERS

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected FSC Certified SCS-COC-002513

909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – sales@fontanawholesalelumber.com

www.fontanawholesalelumber.com

The Merchant Magazine August 2011

Building-Products.com

WHAT YOU WANT. WHEN YOU NEED IT. Dimension Lumber Treated Products Domestic

Timbers Green & K.D. Export

Eek! It’s a Plane!

Mouseplane is a planer that looks like a computer mouse. Designed by Power Adhesives, the tool safely removes glue lines or smoothes uneven surfaces without gouging. It can also be used to level edges and clean out corners. When not in use, the hardened carbon steel blade can be turned aside or covered.

POWERADHESIVE.COM (704) 334-2425

Bamboo Composite Decking

BamDeck composite decking from CaliBamboo is made from 100% recycled materials. Boards, which reportedly never need sealing, painting or refinishing, contain 30% recycled bamboo fibers and 70% recycled plastics. Options include three different colors—caramel, coffee, and slate—and three surface choices—smooth, ridged, or alternating. A hidden fastening system speeds installation.

CALIBAMBOO.COM (888) 788-2254

Building-Products.com

Manke Lumber Company is familyowned and has been serving the needs of the lumber industry since 1953. We take pride in milling and stocking quality lumber in a full range of commodity sizes and larger dimension timbers. We also answer your market needs for a wide variety of treated lumber products. Our forest products are milled from carefully harvested Northwest trees ready for distribution to you—on time and at the right price. Located in the Port of Tacoma, we have ready access to deep water shipping, rail heads or trucking terminals for longer haul loads. Manke operates its own fleet of trucks and is at your service for straight or mixed loads by truck, rail or sea. We manufacture primarily Douglas fir and western hemlock, including • 2x4 thru 2x12, Lengths 8-20’ • 3x4 thru 3x12, Lengths 8-26’ • 4x4 and wider, Lengths 8-26’ • 6x6 and wider, Lengths 8-26’ • 8x8 and wider, Lengths 8-26’ • Timber sizes up to 12x12

Manke Lumber Company Call 1-800-426-8488 1717 Marine View Dr., Tacoma, WA 98422

Phone 253- 572-6252

Fax 253-383-2489

www.mankelumber.com August 2011 The Merchant Magazine

Locking Deck Brackets

DeckLok brackets from Screw Products strengthen critical connections between deck components. The fasteners can be used with rail posts, ledger boards, and stair stringers to reduce the risk of shifting and collapse. For traditional deck applications, the 16-gauge steel connectors have a post-manufactured hot-dip galvanized coating. For boat docks and other marine applications, use 316 or 304 stainless steel.

SCREW-PRODUCTS.COM (877) 844-8880

WHOLESALE ONLY • MILL DIRECT & LCL

WHERE QUALITY IS AGELESS Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers

This Column’s a Wrap

Versatex has expanded its line of cellular PVC Versawrap products. A new 8”x8”x10’ column wrap has a friction-fit closing system to fit tightly and securely around rough-sawn wood posts. Bed moulding kits in regular and extra-long lengths add interest to the column base and lower section of the column wrap. A base moulding kit tops off the outer edges of the column base. Crown moulding kits with a standard 4” crown add ornamentation to the top of wrapped columns. Belmont post caps, for 4” and 6” wrap configurations, allow conversion of wrapped columns to newel posts.

VERSATEX.COM (724) 857-1111

CALL SALES AT (800) 400-8383 • (951) 681-4707 Rick Anfinson • Carol O’Connor Outside Sales Darin Curran

(949) 412-1894

Energy Efficient Openings

Visit our website:

www.anfinson.com

Fontana, CA Office and Mill: 13041 Union Avenue, Fontana, CA 92337 Fax: (951) 681-3566 • E-mail: sales@anfinson.com

The Merchant Magazine August 2011

Great Lakes Window offers all-vinyl replacement windows and patio doors with advanced insulation. The EcoSmartTM series has triple panes, krypton gas-filled glass, and Energy Star-compliant Low-E glass options. All models offer triple pane options, decorative and tinted glass, grilles between glass, and etched grilles.

ECOSMART-WINDOWS.COM (888) 975-9436

Building-Products.com

Optimizing Saw for Flooring

Cantek’s CFS-100 optimizing cut-off saw removes defects from flooring boards. Simply mark defects and load the wood. After defects are removed, the saw can partially optimize the material to length. It then moves through the cut-off sta-

tion and the linear end-matcher, for tongue-&-groove on the ends.

CANTEKAMERICA.COM (888) 982-2683

4444 W. Russell Rd., Ste. #C Las Vegas, NV 89118 (702) 430-3433 Fax (702) 430-3440

10330 Elm Ave., Fontana, CA 92337 (800) 244-1696 (909) 357-7730 Fax (909) 357-7743

Exclusive to Las Vegas

Heavy Duty Boots

Please browse our website for all material needs

Timberland’s Pro Helix work boots are lightweight but rugged. A mesh lining with microbial treatment controls odors, while an alloy or composite toe provides lightweight protection and a roomy fit.

NEVAMAR Established 1979

www.petermanlumber.com

FSC® CERTIFIED MATERIAL AVAILABLE $7 MILLION INVENTORY

High Pressure Laminates

STARON Solid Surfaces

Domestic & Exotic Hardwoods, Softwoods, Panel Products, Laminates, Shutter Parts, Cabinet Hardware, Flooring, Custom & Architectural Mouldings, Custom Milling, & Many More Building & Decorative-Related Products

THUNDERBOLT WOOD TREATING

TIMBERLAND.COM (888) 802-9947

We are open to the public! We welcome your visit to our customer service centers Fontana, CA, and Las Vegas, NV

…Quality Wood Treating Services Since 1977 “We Treat Wood Right”…

www.thunderboltwoodtreating.com

Treating Services Only (TSO)

Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA

ACQ • CCA • BORATES D-BLAZE® • ACZA (CHEMONITE®))

Bob Palacioz, sales/marketing mgr. • bob@thunderboltwoodtreating.com (916) 402-3248 • Fax (916) 339-2477

Heat Treating • Drying Services (KD, KDAT) Marine Piling • Staining Service • Rail Siding (BNSF) Coating Serv ice: MFI-SLO8 Marine Grade Spray Polyurea Coating

Marine & Industrial S ales Miguel Gutierrez • miguel@thunderboltwoodtreating.com (209) 747-7773 • Fax (209) 451-0425

Building-Products.com

August 2011 The Merchant Magazine

INLAND LUMBER PRODUCERS Photos by The Merchant Magazine

INLAND LUMBER Producers hosted its 28th annual golf tournament July 13-16 at Coeur d’Alene Resort, Coeur d’Alene, Id. [1] Russ & Linda Hobbs, Andrea & Frank Peaslee. [2] Ken Koenig, Mike Mordell, Don Graver. [3] Grace & Wilbur Nisly. [4] James Unger, Kaulene Bower, Lance Hubener. [5] Jess Anzo, Dan Hiltz, Jill & Joe Angelo. [6] Ted Roberts, Mark Mitchell. [7] Bob Mai, Aaron & Pam Babcock. [8] Randy Maxwell, Dave Bourne, Marty Wilson. [9] Tom Ray, Tom Lund. [10] Rick

The Merchant Magazine August 2011

Palmiter, Chelsea Bolgren, Debbie Bolgren, Danielle Inderlee. [11] Ahren Spilker, Amy & Jon Montague, Kirk Plagge. [12] Angela & Kris Breuing, Mike Flynn. [13] John Grove, Branda Jurasek, Petar Stoyanov. [14] Alan & Jennifer McCollim, Wade Wheeler. [15] Shawn Cox, Jim Vandegrift, Evelyn Kamitomo. [16] Al Delbridge, Harris Gant, Larry Schmedding. [17] Linda & Barry Schneider. (More photos on next two pages) Building-Products.com

INLAND LUMBER PRODUCERS Photos by The Merchant

INLAND GOLFERS (continued from previous page) enjoyed Idaho: [1] Frank Massey, Michele Mitchell, Paul & Teresa Cheatham. [2] Chloe & Frank Pearson. [3] Terry Baker, Bob DeWald. [4] Sue & Mark Herms, John Branstetter. [5] Carol & Steve Bacon. [6] Mike Ebert, Troy

Building-Products.com

Lundquist, Cary Holaday. [7] Roger & Carol Hughes. [8] Wendy & Mason Anderson. [9] Sam Howard, Ron Cluster. [10] Laurel & Chuck Casey. [11] Amy & Todd Pollard. (More photos on next page)

August 2011 The Merchant Magazine

INLAND LUMBER PRODUCERS Photos by The Merchant Magazine

MORE INLAND GOLF (continued from previous two pages) in Idaho: [1] Dave Stokes, Chris Tritschler, Adrienne Dybes. [2] Nick Lungu, Mike Henley, Ahren Spilker, Jacqueline Lungu. [3] Bill & Joan McGovern. [4] Guy & Kathleen Burrell, David Stallcop. [5] Dan Muldoon, Buck Merritt, Jim Alexander. [6] Bill Hetland, Kerry Calverley, Ken Price. [7] Jessica Malloy, Pat Malloy, Vicki & Bob Jahns. [8] Greg Synder, Jim Warren. [9]

The Merchant Magazine August 2011

Mark & Sheila Carter. [10] Dave Bolgren, Matt Kelly, Steve Passe. [11] Dusty & Penny Hammack. [12] Troy & Sue Lundquist. [13] Chuck Dotson, Jon Woods. [14] John & Susie Malloy, Bob & Chery Lackey, Kim Smith. [15] Mike Boeck, Larry Schmedding. [16] Terry Johnson, Jeff Webber. [17] Cary Holaday, Pat Collins, Andy & Amber Dunham. [18] John Steward, John & Alice Walcott, Rich Kitch. Building-Products.com

ASSOCIATION Update the Cedar Shake & Shingle Bureau, Western Red Cedar Lumber Association, and Western Red Cedar Export Association.

LA HARDWOODS

Mountain States Lumber & Building Material Dealers Association has recruited former U.S. Representative Bob Beauprez to speak at its 120th annual conference Oct. 6-8 at the Ameristar Casino, Resort & Spa, Black Hawk, Co. Also on the agenda are a business roundtable session moderated by Foxworth-Galbraith Lumber’s Jack Foxworth, a seminar on retaining and engaging employees, and golf at the Fossil Trace Golf Club in Golden, Co.

Black Bart Hoo-Hoo Club will host its Ron Pierce Memorial Clay Shoot Aug. 26 at Black Point Sports Club, Petaluma, Ca. Sept. 30 is the date of its annual golf tournament, at Ukiah Golf Course, Ukiah, Ca.

North American Wholesale Lumber Association has booked Chuck Leavall—tree farmer, author, and Rolling Stones performer—to keynote its Oct. 19-21 Traders Market at the Mirage, Las Vegas, Nv. Leavall has written four books on environmental issues and co-founded a website on environmental news. In 1999, he and his wife were recognized as National Outstanding Tree Farmers of the Year by the American Tree Farm System. This year’s Magellan Network will feature Steve Lovett, Blue Ribbon Commission for Softwood Lumber Check-Off, and Craig Larsen, Softwood Export Council.

Photos by Walter Ralston

Lumber Association of California & Nevada is joining with the California Forestry Association to host its annual PAC breakfast Aug. 23 at the Sheraton Grand, Sacramento, Ca. The group’s annual convention is Oct. 20-21 at Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca. Highlights include an opening golf tournament, an associates reception with tabletop displays, and PAC silent auction. Speakers will discuss a variety of topics, including “The Emerging China Market” and “Word of Mouth Advertising.”

LOS ANGELES Hardwood Lumberman’s Club held its annual election night June 9 in Orange, Ca. [1] Mark Michie, Jim Gaither, presidentelect for 2012 Dan Bohannon. [2] Bruce Jauman, Matt Barrass. [3] Steve Ondich,

Deonn Deford. [4] Paul Pendergast, Dennis Johnston, Bill Fitzgerald. [5] Walter Ralston, Charley James. [6] Nathan Osborne, Dale Bohannon, Kevin Tranter.

American Architectural Manufacturers Association has scheduled its national fall conference for Sept. 25-28 at JW Marriott Desert Springs, Palm Springs, Ca.

BC Wood will present the global buyers mission Sept. 8-10 at the Whistler Conference Center, Whistler, B.C. Attendees will enjoy a two-day trade show and events sponsored by Building-Products.com

August 2011 The Merchant Magazine

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

HELP WANTED SOUTHERN CALIFORNIA OUTSIDE SALES REP

Universal Forest Products, the nation’s leading manufacturer and distributor of wood and woodalternative products to retail/dealer, manufactured housing and industrial markets, is seeking an outside sales representative to serve its southern California pro dealer customer base. This position is based out of the company’s Riverside, Ca., facility. This candidate should have comprehensive knowledge of the southern California marketplace and a thorough understanding of the products therein. We are looking for people who can contribute to our growth, who are hungry for success, who bring a winning attitude to their work, and who are interested in new opportunities in an established arena. You provide the skill, knowledge, integrity and perseverance, and we will provide a great place to work, where you will be encouraged to grow and learn and rewarded with outstanding benefits and compensation. If you are interested in joining our team, please email your resume to Steve Mitchell at smitchell@ufpi.com. All replies will be kept strictly confidential. Universal is an equal opportunity employer.

SITE WANTED

WANTED: LUMBERYARD SITE in North Orange County or Inland Empire. Contact shirley.reel@reellumber.com.

Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month.

FACILITIES FOR LEASE

OFFICE & WAREHOUSE FOR LEASE: Northern California Sacramento region. Approximately 2,000-sq. ft. office attached to 30,000-sq. ft. warehouse. Warehouse clear span height 20 ft. Office & restrooms ADA accessible. Warehouse includes three-man doors with large 20-ft. roll-up door. 220V power available. Fire sprinkler system throughout. Truck shop facilities provided, including minor repair work, oil changes, steam cleaning, etc., at favorable rates. Ample truck parking space in back of facility. Office & 30,000-sq. ft. front warehouse available at .29¢ per sq. ft. If interested, please call Tom Williams, (530) 7422168, between 8 a.m. and 5 p.m.

FOR SALE

immediate delivery!

CUSTOM LUMBER COVERS PALLET BAGS

Roofing Shingles • Cement • Sheetrock & Plywood Pallet Bags Bags 4 x 4 x 4' • 4 x 4 x 8' • 4 x 4 x 12'

FOR SALE

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covers the other 37 states, including the Midwest, Southeast and Northeast. Subscribe for just $24 for 12 issues.

L.I.INDUSTRIES CALL 800-526-6465

Contact Heather at (949) 852-1990

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www.lumbercoversprotect.com

HKelly@building-products.com

Kick-start your 2012 selling season Get the attention of 21,000 lumber buyers across the country. Ensure your ad message reaches EVERY company attending the 2011 N A W LA T rad ers M arke t by advertising in Traders’ Preview, a Special Supplement appearing with both The Merchant Magazine and sister publication Building Products Digest. For one low price, you receive: • Full national distribution of your ad, packaged with the October 2011 issues of The Merchant and BPD. • Expanded directory listing for your company • Distribution at the event • Free clickable online ad for your company (1 month exposure on building-products.com) • Discounted, all-inclusive ad rates:

Call Chuck Casey or Alan Oakes at 949.852.1990 44

The Merchant Magazine August 2011

Building-Products.com

DATE Book

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

Hoo-Hoo International – Sept. 9-13, annual convention, Harbour Towers Hotel, Victoria, B.C.; (800) 979-9950; www.hoo-hoo.org. Horizon Distribution Inc. – Sept. 10-11, annual market, Yakima Convention Center, Yakima, Wa.; (800) 541-8164; www.horizondistribution.com.

Swanson Group – Aug. 13, annual Christmas charity golf scramble, Dutcher Creek Golf Course, Grants Pass, Or.; (541) 832-1666; www.swansongroup.biz.

Moulding & Millwork Producers Association – Sept. 11-13, meeting, Arlington, Tx.; (800) 550-7889; www.wmmpa.com.

Orgill Inc. – Aug. 18-20, dealer market, Boston, Ma.; (800) 3472860; www.orgill.com.

Willamette Valley Hoo-Hoo Club – Sept. 14, trap shoot, Sportsman’s Club, Creswell, Or.; (541) 688-6675.

Southern California Hoo-Hoo Club – Aug. 17, dinner & meeting, Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842.

Colorado State Forest Service – Aug. 18-19, forest products marketing conference, Denver Marriot West, Golden, Co.; (970) 4910801; www.regonline.com/cfp-conference.

American Wood Protection Association – Sept. 11-15, fall committee meetings, Anchorage, Ak.; (205) 733-4077; awpa.com. Jensen Distribution Services – Sept. 14-16, fall market, Spokane Convention Center, Spokane, Wa.; (800) 234-1321; www.jensenonline.com.

Lumber Association of California & Nevada – Aug. 23, annual PAC breakfast, Sheraton Grand, Sacramento, Ca.; (800) 2664344; lumberassociation.org.

World Forest Institute – Sept. 19-21, “Who Will Own the Forest?” conference; Sept. 22, forest products forum, World Forestry Center, Portland, Or.; wwotf.worldforestry.org.

Remodeling & Decorating Show – Aug. 26-28, South Town Expo Center, Sandy, Ut.; (818) 571-9012; www.thehomeshow.com.

Pacific Northwest Association of Rail Shippers – Sept. 21-22, fall seminar, Eugene, Or.; (503) 656-4282.

Black Bart Hoo-Hoo Club – Aug. 26, clay shoot, Black Point Sports Club, Petaluma, Ca.; (707) 621-0485. Remodeling & Decorating Show – Aug. 27-28, OC Fairgrounds, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com.

Building Component Manufacturers Conference – Sept. 21-23, Indianapolis, In.; (608) 310-6722; www.bcmcshow.com. National Hardwood Lumber Association – Sept. 21-24, annual convention, Nashville, Tn.; (800) 933-0318; www.nhla.org.

GlassBuild America – Sept. 7-9, Georgia World Congress Center, Atlanta, Ga.; (703) 442-4890; www.glassbuildamerica.com.

True Value Co. – Sept. 23-25, fall market, Philadelphia, Pa.; (773) 695-5000; www.truevaluecompany.com.

BC Wood – Sept. 8-10, global buyers mission, Whistler Conference Center, Whistler, B.C.; (877) 422-9663; www.bcwood.com.

Black Bart Hoo-Hoo Club – Sept. 30, golf tournament & BBQ, Ukiah Municipal Course, Ukiah, Ca.; (707) 621-0485.

Western Red Cedar Lumber Association – Sept. 8, open cedar session, Whistler, B.C.; (866) 778-9096; www.wrcla.org.

American Architectural Manufacturers Assn. – Sept. 25-28, fall conference, Palm Springs, Ca.; (847) 303-5664; aamanet.org.

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 Gene Pietila

Sales for Coast Wood Preserving

C&E LUMBER COMPANY

1 1/2” to 12” Diameter in Stock.

SPECIAL QUOTES Building-Products.com

August 2011 The Merchant Magazine

IDEA File

Business experts advise

Home Improvement, Self Improvement

small business owners that writing a regular online column can be a great way to build rapport with your customers. But an innovative blog penned by Hipp Modern Builders Supply, Mountain View, Ar., goes way beyond the usual how-to advice on home improvement projects. Named “Hipp’s Help” (www.hippshelp.com), the two-year-old site is the brainchild of owner Terry Hipp and his son, Gentry Hipp, who manages both the store and its Internet offerings. The site features a prominent link to Hipp’s online Do it Best store, including a discount code. But it initially attracts customer with less commercial motives. “We know that people are always trying to better themselves and improve the way of life they live,” writes Gentry. “If we can help one person improve the way they live, then we feel like that we have accomplished our goals for our site.” Although readers can read about the standard home improvement projects—how to build a wooden arbor, how to pave a driveway, how to build an outdoor shower—they can also learn how to create a website, how to make money online, and how to write a resume. “Our main purpose is to just throw our micro bursts of thoughts out to you,” reads the blog, “along with sharing some of our content and specials from our parent site.” The site’s motto is “How to Do Just About Anything.” Recent posts offer everything from how to create a video game, tips on baking cookies, a discussion of foster care and international adoption, lots of parenting advice, how to make money on penny stocks, how to naturally get rid of eczema, and a practical, seven-step guide on how to stop vomiting. After offering the observation that “in most cases other than food poisoning, vomiting may be unnecessary,” the blog offers helpful advice on how to control the unpleasant side-effects of an irritated stomach. Believing that “we are all put on this earth to help each other and to see that we all live a full life,” Gentry writes that he hopes the blog “will help everyone that reads it. My wish to everyone out there is that you live a full and happy life!”

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

Advanced Building Products [www.mortairvent.com]..................5 Advantage Trim & Lumber [www.advantagelumber.com]..........33

AERT [www.aertinc.com]......................................................Cover II Ainsworth [www.ainsworthengineered.com] .........................24-25

Anfinson Lumber [www.anfinson.com]........................................38

Arch Wood Protection [www.wolmanizedwood.com].........Cover I Cal Coast Wholesale Lumber ........................................................45

California Redwood Co. [californiaredwoodco.com]........Cover IV California Timberline [www.caltimberline.com] ............................4 C&E Lumber [www.lodgepolepine.com] ......................................45 Crawford Creek Lumber [www.crawfordcreeklumber.com].......34

Distribution Management Systems Inc. [www.dmsi.com]..........41

Eco Vantage [www.ecovantage.com] .............................................8 Fontana Wholesale Lumber [fontanawholesalelumber.com].....36

Heico Distribution Group [www.heicodg.com]..............................7

Huff Lumber. ...................................................................................29

Kelleher Corp. [www.kelleher.com] ................................................3 Keller Lumber .................................................................................43

Leadermac USA [www.leadermacusa.com].................................22

LP Building Products [www.lpcorp.com].....................................28

Manke Lumber [www.mankelumber.com]....................................37

Mount Storm Forest Products [www.mountstorm.com].............34 Norman Distribution [www.normandist.com] ..............................33

North American Wholesale Lumber Assn. [www.nawla.org] .....27 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....15

Peterman Lumber [www.petermanlumber.com]..........................39

Redwood Empire [www.redwoodemp.com].................................19

Reel Lumber Service [www.reellumber.com] ..............................26

Regal Custom Millwork ..................................................................26 Roseburg Forest Products [www.rfpco.com] ..............................21

Simpson Strong-Tie [www.strongtie.com]...................................23

Swanson Group Sales [www.swansongroupinc.com]......Cover III

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....39

Universal Forest Products [www.ufpi.com] .................................32 Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net] ....36 Western Red Cedar Lumber Association [www.wrcla.org]...30-31

The Merchant Magazine August 2011

Building-Products.com

The

MERCHANT

Magazine