MERCHANT
NEW IN EWP LUMBER RACKING & MATERIAL HANDLING TRADERS MARKET PHOTOS
The
DECEMBER 2012
Magazine
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The
MERCHANT
December 2012
Volume 91 Number 6
Special Features 9 PRODUCT SPOTLIGHT NEW SOFTWARE SIMPLIFIES DESIGN OF EWP TRUSSES & PANELS
10 INDUSTRY TRENDS BAMBOO STALKS EWP MARKETS
12 MARGIN BUILDERS SELECT THE BEST RACKING FOR YOUR LUMBERYARD
14 FEATURE STORY GET HOOKED UP WITH THE PROPER LIFT TRUCK FOR YOUR BUSINESS
16 COMPETITIVE INTELLIGENCE DAKOTA YARD ENJOYS BOOM TIME UNDER NEW OWNERS
20A SPECIAL INSERT TEAR OUT TO USE FOR YOUR 2013 TRAVEL PLANNING: DELUXE INDUSTRY CALENDAR OF EVENTS
30 PHOTO RECAP: TRADERS MARKET 35 PHOTO RECAP: WRCLA EVENT
Online BREAKING NEWS, EVENT PHOTO DOWNLOADS, & DIGITAL VERSION OF THE MERCHANT MAGAZINE BUILDING-PRODUCTS.COM
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The Merchant Magazine December 2012
Magazine
In Every Issue 6 TOTALLY RANDOM 18 OLSEN ON SALES 22 MOVERS & SHAKERS 23 IN MEMORIAM 24 MANAGEMENT TIPS 26 ASSOCIATION UPDATE 27 NEW PRODUCTS 36 CLASSIFIED MARKETPLACE 38 IDEA FILE 38 ADVERTISERS INDEX CHANGE OF ADDRESS Send address label from recent issue, 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速2012 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.
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TOTALLY Random By Alan Oakes
I
Chicago buzz
from the NAWLA Traders Market in Chicago. If you ever wanted to be motivated about the turnaround, then those that could attend this event and did not, missed out. The noise was loud, energetic, and downright upbeat for 2013. The election result from the night before, called seemingly 20 minutes after the polls closed, had no bearing. Good to see the best attendance for a number of years. Long may it reign! Yes, we know it has ways to go, but no one disputes this year was a heck of a lot better than last, and 2013 will continue that trend, barring no unforeseen events. Government: Get the fiscal cliff sorted ASAP! As a great proponent of attending industry events, while I know it has not been easy these past few years, it is time to get out again and hear and see what is going on. I attend many, many events and there is never one I do not learn something from. And how could you not? There were over 1,300 industry attendees at Traders Market—manufacturers, service companies, mills and wholesalers—and hearing what’s going on from your peers can only help you in your business. It really does not take much to more than pay for your dues and travel many times over. Many associations have multiple programs that can help you at all levels of your company and protect your and the industry issues. They are the glue to this industry and they need your support as much as you need theirs. On the question of learning, I have been helped over many years by many people. I have received common-sense advice over the years from mentors and managers. From them I have learned how I want to be and, sadly in some cases, how I do not want to be. I was taught long ago that if your company does not instill the best quality into all that it does, you will not succeed. The customer is always right. A quality company needs quality people—hire the best! That has guided my business principles for many years. There is no short cut to success. While sometimes you can just be lucky to be in the right place at the right time, you mostly create your own luck by doing the right things. I have learned that if you help people through their issues without the thought of return, it comes back to you many times over. Listen to your customers and your employees—you do not know everything. Anyone you need to talk with is worth listening to! Learn from your peers—do not be so insular. Take advice! I once worked directly for one of the richest people in the world who always told me: worry about the top line and the bottom line will take care of itself. Believe in the value of what you offer and stand by your pricing principles. When everyone else is giving it away, stand firm! Over these last four years especially, you could not always control what was happening around you, but you can control how you respond with the actions you take. Whenever the going gets tough, the tough get going. Yes, everyone uses that, but I learned when I was in the automotive business that when the economy gets tough, people keep their cars longer and need to repair them. When you cannot buy a new home you remodel the one you have. The moral: there is always business to find even in the worst of times. When everyone else goes into hiding, increase your trade visibility. When they cut, get aggressive! Be punctual in all that you do and keep your promises. Turn up prepared for a result. And, last but not least, work with the highest integrity. Treat people with respect and in a manner that you yourself want to be treated. I am happy that I have never had to betray my principles and whenever I was asked to, I moved on to something else. And I continue to learn from those around me! It should never get old. As we come to the end of 2012, as always I want to thank you, our loyal readers and advertisers, for all your support. Our advertisers allow us again to continue as the ONLY publication in the sector to publish 12 monthly issues and to enjoy more advertisers in our industry than any other publication. Thank you. Merry Christmas and Happy Holidays to you all, and may 2013 be the year we have been waiting for. JUST RETURNED
Alan Oakes, Publisher ajoakes@aol.com
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The Merchant Magazine December 2012
The
MERCHANT
Magazine
www.building-products.com
A publication of Cutler Publishing
4500 Campus Dr., Ste. 480, Newport Beach, CA 92660
Publisher Alan Oakes ajoakes@aol.com
Publisher Emeritus David Cutler
Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Dwight Curran James Olsen Jay Tompt Carla Waldemar
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Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com
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CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com
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SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50
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Building-Products.com
PRODUCT Spotlight Truss Design Software
New software simplifies design of engineered wood trusses and panels
N
Simpson Strong-Tie, Pleasanton, Ca., allows efficient design and manufacture of roof and floor trusses and wall panels. Going forward, the company will work closely with users to expand functionality of the software on an ongoing basis. Within the new software, which is named Component Solutions, designers can model structures in an intuitive 3D environment, create and optimize truss and panel designs, send truss design information to Simpson StrongTie for engineering seals—and more. “Simpson Strong-Tie has been involved in the structural building component industry for decades,” says Mike Bugbee, senior vice president of truss and component systems. “This experience has provided invaluable insights into the needs of the component manufacturer and resulted in this latest addition to the Simpson Strong-Tie product line for light-frame construction.” Other new additions include three new truss hangers: HTHMQ is a versatile, high-capacity truss hanger designed EW SOFTWARE FROM
CONNECTOR PLATES manufactured by Simpson Strong-Tie strengthen engineered wood roof trusses. Photos courtesy Simpson Strong-Tie. Building-Products.com
NEW SOFTWARE enables efficient design and manufacture of roof and floor trusses and wall panels.
to carry two or three trusses to enable a greater range of hip-jack configurations, including various angles, member sizes, and number of plies. HHSUQ is a high load, face mount, truss-to-truss and structural composite lumber hanger designed to accommodate severe skews. Available Jan. 1, HTHGQ is a high-capacity girder that carries multi-ply trusses (up to five-plies) or structural composite lumber. Previously, such extreme loads required a bolted connection. Another important offering is truss connector plates manufactured by Automatic Stamping, which was acquired by Simpson Strong-Tie last December. “This facility was established about four years ago by Bill Black Jr., a leader in the truss industry,” says Bugbee. “It produces top-quality truss connector plates with some of the highest loads in the industry.” Simpson Strong-Tie also produces a full range of products for component systems, including proprietary shear walls and moment frames, plus related fasteners, adhesives, and concrete anchors. “Our range of innovative connections enable longer spans and more complex designs, while addressing increasing loading required to meet evolving code requirements,” says Bugbee. December 2012 The Merchant Magazine
9
INDUSTRY Trends Laminated Veneer Bamboo
Bamboo stalks engineered wood markets T
of Lamboo Inc., Springfield, Il., laminated veneer bamboo (LVB) can now be specified as a fiber material in engineered wood products covered by ASTM International standards. “Now, architects and engineers will be able to specify possibly the most ecologically friendly material to ever be integrated into the most respected international standard,” says president Luke Schuette, who has more than 32 years experience in the research and development of engineered wood products. “It has taken over three years of effort and multiple ballots to develop the necessary revisions to permit the evaluation of a bamboo species used in structural composite lumber (SCL) manufacture,” says Bruce Craig, product development director at Lamboo. “These revisions will permit an LVB product to be used as an alternative to other structural wood products.” LVB is a composite of bamboo strand elements, edge-bonded to form veneer sheets that are then face-bonded to form finished products. Schuette says that the product’s inclusion in ASTM International standards represents the first bio-based structural material addition in about 30 years. As he notes, “sustainability is becoming more and more of a focus in construction.” Lamboo’s partnership with The Forest Trust ensures that its raw material is sourced from sustainably managed plantations in Vietnam, China, Africa, Central and South America. The fiber is then processed in nearby manufacturing facilities and shipped HANKS TO THE EFFORTS
LAMBOO’S STRUCTURE brand products fabricated by Walsh Industries, Portland, Or., bring beauty, strength, and durability to a commercial project. All photos courtesy Lamboo Inc.
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The Merchant Magazine December 2012
Building-Products.com
ELEMENTS BRAND exterior-grade components, such as panels, awnings, and stair treads, are 30% more stable than hardwoods in harsh exterior conditions.
to custom fabricators around the world. Naturally resistant to fungus and bacteria, bamboo also contains silica fibers that deter insects and wood-eating pests such as termites. Only lowVOC adhesives are used during the manufacturing process, so there is no off-gas during sanding, profiling, and handling. On the job, no special tools are required and LVB mills, sands, and finishes like most hardwoods. Depending on the application, LVB can cost up to 10% to 20% more than engineered wood products made of southern yellow pine or Douglas fir. Even so, Matt Paul, director of architectural product development, believes this is a small price to pay for “the substantially higher structural performance of bamboo, due to proprietary adhesives and additional engineering.” The Lamboo Structure line is made up of high-performance engineered bamboo components for an array of applications: beams and glulams, exposed trusses and members, and hybrid cold-formed steel joists. All are
custom-fabricated in by Lamboo’s manufacturing partners in the U.S.: Western Structures, Eugene, Or., and Walsh Industries, Portland, Or.
Lamboo Elements consists of exterior-grade, laminated bamboo components that can be used in panels, awnings, and stair treads. “It’s 30% more stable in moisture and temperature changes than traditional hardwoods,” notes Paul. “And, these materials remain stable in harsh environments, through years of use.” The company also offers WeaveCore, an alternative to traditional plywood and OSB, for use in roof, wall, and floor deck panels. Panels measure 4’x8’, with other sizes available for volume orders, in thicknesses of 7mm, 13mm, 16mm, and 19mm. “Lamboo recognizes the growing demand for superior products that deliver outstanding performance,” says Schuette. “Our products are not only a superior option in terms of quality and performance, but are a sustainable option as well.”
WEAVECORE is a bamboo alternative to traditional plywood and OSB panels.
C&E LUMBER COMPANY
1 1/2” to 12” Diameter in Stock.
SPECIAL QUOTES Building-Products.com
December 2012 The Merchant Magazine
11
MARGIN Builders By Sean Denison, Timberline Rack & Storage
I
The right racking for your yard
DON’T BELIEVE there is a definitive answer for what type of racking works best for what product. The truth is there are too many variables. In the end, what type of racking works best depends on the customer’s budget, equipment, and footprint. I have multi-location customers who have to handle the same products differently because of the way their operations are laid out. Hopefully, if we as solution providers ask the right questions ahead of time, we can provide the
best options for maximizing our customer’s efficiency and protecting their products. That being said, here are a few examples of things we are doing that seem to be working well for our customers.
Cantilever Racks
If laid out carefully and correctly, and designed for the proper loads, customers can’t go wrong with cantilever racking because of its versatility. EWP, dimensional lumber, metal studs, and sheet goods can all be stored effectively in cantilever racks. With the use of specialty steel pallets designed specifically for loading vinyl siding and composite decking, those items can also be stored in cantilever rack without fear of the product sagging.
Stacking Millwork Racks
TRADITIONAL cantilever racking is a versatile solution for everything from dimensional lumber (top photo) and engineered wood to sheet goods and metal studs (directly above).
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The Merchant Magazine December 2012
Millwork racks provide for the safe shipping and storage of fragile and often expensive millwork items. With the use of optional carts, they can be utilized throughout the manufacturing process, shipped, stored and ultimately delivered to the jobsite. Millwork racks can be stacked up to three racks high, maximizing the use of available floor space. A large distributor in the Chicago area now works in concert with their window manufacturer by utilizing our millwork racks. They send empty racks to the manufacturer when placing their orders for windows and glass doors. Those products never leave the millwork rack until the builder is installing them. The fewer times these products Building-Products.com
have to be handled, the less likely these products are to be damaged.
Pallet Racks
Pallet rack can be used in various configurations and is easily changeable, making it an excellent storage option for numerous products. Shingles can be stored safely and densely in pallet rack. It is not uncommon to see pallet upon pallet of roofing materials taking up valuable space in a customer’s yard or parking lot. By utilizing pallet racking adapted for metal siding and roofing, the materials can be stored vertically at the edge of the customer’s property. This limits the space they occupy and reduces damage to product from stacking. Pallet racking can also be equipped with material divider bars and used to store items vertically. Long lengths of moulding, pipes and tubing can be stored neatly in pallet rack, and it makes for easy loading and unloading by both customers and employees. In areas where space is limited, or the user needs to store a large number of SKUs in smaller quantities, much denser storage can be accomplished by incorporating pallet racking into a pigeon-hole system. In this configuration, items are stored horizontally, one on top of the other. In many cases, the top of the racking can then be covered and used as additional storage space. The possibilities are endless when it comes to storing building materials. There are all types of racking systems that can be used efficiently. But the bottom line is this: Effective storage solutions have to be designed around a customer’s available useable space, their products, and their existing equipment.
– Sean Denison is president and owner of Timberline Rack & Storage, Granger, In. Reach him at (888) 293-1116 or sdenison@timberlinerack.com.
LBM Rack Specialists
In addition to the dozens of general racking providers, the following specialize in equipping lumberyards:
Krauter Auto-Stak
www.Roseburg.com
Engineered Wood Products
Quality Engineered Wood Products for today’s builder® Lyle Lee has been building custom homes for over 20 years. Here is what he has to say about Roseburg’s Engineered Wood Products. “When building a quality home, it’s important for all the framing materials to match. In other words come together as specified in the design plans. If the framing is off by even a ¼ of an inch, it can cost me thousands of dollars in time and materials. I find Roseburg’s RFPI®-Joist and RigidLam® LVL to be very consistent in width and depth. When I use Roseburg’s RFPI®-Joist, my floors are more level, stiffer and truer, making my job much easier. This home is 6,000 square feet so I used I Joist and LVL from several different units and the manufacturing consistency was exactly the same. If you want to maximize your profit, I would recommend using Roseburg’s Engineered Wood Products”. Lyle Lee L. Lee Building Company
www.krauterautostak.com
Sunbelt
www.sunbeltracks.com
Timberline Rack & Storage www.timberlinerack.com
Building-Products.com
TF 800-245-1115 Engineered Wood Products | Real Wood Siding | Softwood Plywood | Lumber RFPI®, RigidLam®, RigidRim® and Quality Engineered Wood Products for today’s builder® are registered trademarks of Roseburg Forest Products, Roseburg, Oregon
December 2012 The Merchant Magazine
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FEATURE Story By Steve Rogers, Cat Lift Trucks
How to choose the right lift truck for your business
F
dealers and wholesalers, the lift truck is an essential tool, instrumental in loading and transporting lumber, concrete, shingles, and much more. With so many different types of lift trucks available, matching the right lift truck OR BUILDING MATERIAL
to the application is critical. Choosing the best forklift for a business—a decision that includes many factors, such as electric versus internal combustion, new versus used, lease versus buy, among others—will reduce costs and increase efficiencies.
CHOOSING THE BEST forklift for your business will reduce costs and increase efficiencies.
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The Merchant Magazine December 2012
All forklifts need to be replaced at some point, which leads to two key questions: When should customers consider purchasing a new lift truck, and how can they ensure they’re buying the right one? The answers will vary, depending on the specific busi-
All photos courtesy Cat Lift Trucks Building-Products.com
ness and its utilization needs. A lumber company that runs two forklifts an hour a day will not have the same needs as a mid-size dealer with a six lift truck fleet. The simple rule is whenever annual maintenance costs outweigh the cost of the lift truck lease-payment, it may be the right time to consider financing or leasing a new forklift. Most lift trucks have an economic life of approximately five years or 10,000 to 12,000 miles, although as technology advances economic life continues to increase. A business that plans to use a forklift one to two hours a day, or only intermittently, may consider buying a used model. However, a growing lumber company that anticipates constant use and requires high dependability and uptime may find that a new lift truck is a better option and costs less in the long run. When purchasing a new lift truck, dealer support is part of the decision. Customers without an existing dealer, or those looking for a new one, should ask other regional businesses for recommendations. Always check the dealer’s references against local references within the industry. The customer’s relationship with the dealer should be a true partnership. A good dealer has the expertise to evaluate the customer’s application and recommend a lift truck that matches their exact material handling requirements. Even if a customer has purchased the same forklift for years, a material handling professional should visit the facility to see if anything has changed or if a new technology or attachment can help improve efficiency. In addition, customers should ask the dealer what sort of “value-added” programs they offer, including maintenance programs and specialized fleet management systems designed to measure truck utilization and operating costs. After establishing a relationship with a dealer, the customer should collaborate with the dealer to choose a lift truck brand that meets the customer’s needs. Thanks to significant advances in AC technology over the last decade, electric lift trucks are now more powerful, and in some cases can match the performance and capacity of internal combustion (IC) trucks. While electric forklifts have a higher initial purchase price, they produce no emissions, require less maintenance, and operate at a lower costper-hour than IC trucks. A building Building-Products.com
USED OR NEW? A growing company that anticipates constant use and requires high dependability may find that a new lift truck is a better option and costs less in the long run.
materials supply operation that runs primarily in a warehouse with minimal outdoor exposure may consider purchasing electric pneumatic tire lift trucks, especially if they’re keen on green products. However, for the majority of building material dealers, wholesalers, and lumber companies with operations that run outdoors, IC lift trucks with pneumatic-shaped tires are still the most efficient and capable option. These types of forklifts are ideal for lumberyards because they traverse uneven terrain with ease, can be used in inclement weather, and are available in heavier capacity ranges than electric forklifts. IC trucks run on gasoline, diesel or liquid propane. Because other equipment on site utilizes diesel fuel, many building materials companies find it easiest to purchase a lift truck that also runs on diesel. Customers who haven’t purchased IC trucks in several years may be surprised by how intelligent they’ve become. Lift truck manufacturers are increasingly developing smarter lift trucks that are able to control performance, enhance safety and detect
their surroundings. Be sure to choose a lift truck brand that offers a strong warranty. A standard “entire truck” warranty may be 12 months or 2,000 hours. A standard powertrain warranty may cover 24 months or 4,000 hours. The question of whether to buy or lease will depend on the size of the business, and will be dictated by its financial constraints. There are advantages to both types of financing—customers should check with their financial consultant to determine which scenario would be best for their business. A growing lumber or building supply company may consider leasing rather than buying because it allows the company to utilize the lift truck during its economic life, when it is most productive. A smaller operation that plans to use the lift truck for more than five years may consider financing the purchase, with intent to own the lift truck once it is paid off. – Steve Rogers is senior product marketing specialist at Cat Lift Trucks, Houston, Tx. Reach him at (713) 3651785 or steven.rogers@mcfa.com.
December 2012 The Merchant Magazine
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COMPETITIVE Intelligence By Carla Waldemar
Boom time for North Dakota lumberyard
M
C K ENZIE B UILDING C ENTER , founded in 1934 in Watford City, N.D., for untold years snoozed along on the windswept Dakota prairie as the decades rolled by unnoticed. Why bother to change things up? There was no competition… and also not much in the way of business in the tiny town. That all changed overnight. Oil was discovered on those very North Dakota plains (it’s called the Bakken Field). Three years ago, the town grew from1,200 to 8,000 virtually overnight. “There was only one car dealership, one café—not even a McDonalds, no Walmart,” recalls Andy Jensen of Sterling Cooper, the public relations arm for McKenzie. And… only that one lumberyard. Rather than reboot to face the surge in demand for services, its owner decided to retire. Enter an investment firm that saw opportunity looming and purchased the place with plans to bring it into the 21st century, and then some. (The company is looking at several other yards in the Upper Midwest with the same idea, hoping to gain power in numbers: better buying terms, sharing of best practices, fewer overlaps in personnel, and other savings.) The new owners kept on most of the former employees but wisely hired two new outside salespeople plus—even more vital—seasoned industry officers from nearby Minnesota and Wisconsin yards who had suffered from stiff economic challenges and were excited to begin anew in Watford City. What they found was—a mess. Says Andy, “There were no systems in place. Nobody knew what deliveries had been made, and if those deliveries were even correct and up to spec, nor what was lying around in inventory— ‘Sheetrock? Yeah, I think we got some somewhere…’— what SKUs were selling (and which weren’t), and who’d paid what and when (or maybe not). So, first thing on the to-do list: a modern computer system, thanks to Spruce. The company then bought a boom truck—the first in the
BOOM TRUCK has been a key component of serving local builders.
NEW OWNERSHIP and an oil boom in North Dakota has reinvigorated McKenzie Building Center.
area—to aid its many stressed and busy contractor customers. It added new lines—plumbing, electrical—and joined a new buying group, Hardware Hank, to in-fill items and purchase stock at a better price. It fired some past vendors, hired new ones with better terms (“cash flow is everything”) and more favorable delivery practices. And delivery is no small deal here in the middle of nowhere. Trucks arrive fully loaded but leave empty, which is hardly costeffective. (The only item to leave here is, ahem, oil, and plenty of it.) Those pro customers provided over 70% of McKenzie’s business, but that’s changing, too. The goal is a 50/50 split between pros and retail trade—which meant hiring and training new personnel to handle this different, walk-in, breed of cat. Homeowners represented a big slice of business that had been overlooked, and who wants to turn away trade? “Homeowners had nowhere to go for hundred of miles for things like carpeting and flooring, either, so we added those lines,” says Andy. Plus appliances, paint, fencing, cabinets, you name it. And there’s a vibrant, 2,500-sq.ft. showroom acting as kitchen-and-bath center with free design aid to guide them. Want it installed? No problem. McKenzie has instituted a network of trusted subs (a.k.a. their own contractor customers—a practice that’s proved win-win) to work “in a network for us, like Sears does” as installers, too. And it listened to its pros and added lots of items they said they needed, like power tools. It converted its yard to a covered space that stores lumber sans warping and rot. Free delivery 24/7 also—including into neighboring Montana (“We deliver anywhere” boasts the website.). There’s also a brand-new commercial customer center to specifically help
builders, developers and oil-field contractors: the whole nine yards. In other words, the operation now offers onestop-shopping. For consumers and pros alike, simple awareness was a major hurdle. “The store still looked like it did in the Seventies,” Andy moans, “with the same dusty sign outside that has had the wrong phone number for 20 years.” So he and his crew launched a major publicity campaign, with print and TV ads and promotions that sound almost too good to be true, such as a drawing not only for mega-TVs, but a complete mobile home (in high demand in this city with more No Vacancy signs than dandelions). Speaking of mobile homes, McKenzie has restructured its lot and set up a subsidiary company, Watford City Homes Inc., to offer them for sale—and, going one step further, to add manufactured homes as well—shipped in in modules, ready to be set up. The Park Model, says Andy, rings in at 900 sq. ft.—“a beautiful little home that has the same features of a standard home,” with this exception: It’s instant. And that’s what the hordes of new-in-town oil workers desperately need. Yes, they’ve been buying or renting mobile homes (what we used to calls trailers back in the day, but far nicer), but the city is cracking down on parking them in other folks’ driveways, for which those homeowners charge their tenants $1,500 (!) a month. Workers in these Park Models are clustered in man camps, as Andy calls them—just like in the good old Gold Rush days—living there together weekdays, or for weeks at a stretch, then driving back home for a quick visit with their families before returning to life on the frontier. Contractors are working around the clock, too, building new permanent homes as fast as they can, so families can join their breadwinners—but again the city is imposing new, stricter zoning rules as to, say, lot size (think five acres). Those coveted lots have zoomed in price, Andy says, from $500 to $15,000—a significant part of the asking price of a new house. The nation’s large tract builders are moving in, too, and have no other yard within miles and miles to serve them. Thus, McKenzie’s business rose 30% last year and is up another 40% to 50% so far in 2012. The company is aiding contractors in other immediate ways, such as initiating a new company credit card with up to $1 million available to qualified applicants—acting, in fact, like their banker when that kind of loan is far from easy to come by via standard lending institutions. It’s also launched contractor breakfast sessions, to roll out new products and act as a networking op for participants—and in time will start offering classes in such vital business skills as financial management and computer training. Sure, there’s no competition…yet. But that doesn’t mean there won’t be, so McKenzie’s new owners are conscious not to rest on its status as the only act in town. “We’ve got to be good, or somebody will step up,” they realize. (Andy mentions Amazon, of all vehicles, talking about delivering building products.) So the company is determined to keep on improving, listening to customers, and adding what they say they need. Sounds like a pretty darn good business lesson for anyone to heed. Carla Waldemar cwaldemar@comcast.net
Building-Products.com
December 2012 The Merchant Magazine
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OLSEN On Sales By James Olsen
Selling Ships
W
E ARE ALL AT different levels with our customers. Where do we want to be? What is our ultimate relationship goal?
ServiceShip
The Serviceship level starts with our first contact with the account. They do not know us, trust us, and in some cases have a pre-disposed negative attitude that we will have to overcome. This is the Missouri “Show Me” stage. We must be hyper-vigilant about details. When a potential customer gives us an opening, we must take advantage and make sure all details are checked and doubled-checked. Field reps should coordinate with trucking to arrive with their first shipment, for example. Inside sellers can (virtually) do the same by following up with a phone call at deliver time. In addition to excellent detail work, we must call these customers on a regular basis. I am flabbergasted by the number of salespeople I work with who prospect an account, qualify them as a good fit/potential customer, and then don’t call them on a regular basis. Once we take an account into our rotation—we have decided they deserve our time—we work them just as we would an existing account. We will not become our potential customer’s main supplier if we are not persistent and consistent with our contact from the outset. If we work them like a secondary account, they will treat us like a secondary supplier. Many salespeople make the mistake of staying in Serviceship mode with customers. Alas, we cannot service our way to the top of a sales business. On to Friendship!
FriendShip
The Friendship level happens after we have earned our customer’s trust through our business delivery and consistent personal contact. (This does not always mean friendly. Some people will never be friendly, but they will trust us— The Friendship level.) Because of this trust, doing business is easier. While there are still negotiations, they are more transparent and more win-win oriented. Mistakes are forgiven or fixed quickly. Volume increases. This is a happy stage in the relationship with a customer, and many salespeople confuse happiness with winning. (A touchdown makes me happy, but does not win the game. A date makes me happy, but does not a lifetime partnership make.) Two mistakes are made at this stage of the relationship. The first is taking advantage of the friendship and trust we have built. We start to slack off on the detail work. (Who in
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sales loves detail work?) We don’t hustle for the business as diligently as we did at the beginning of the relationship. This is how accounts are lost and stolen. How difficult is it to un-seat an incumbent? Darn tough. To lose an account whose trust we have earned, we have to make some lazy mistakes—but it happens all the time. Ouch. The second mistake is more serious and is the hallmark of the plateaued, mid-level salesperson in all organizations. The Friendship level is not the end-game. Many sellers believe that having a friendly relationship with the customer means that they are getting the lion’s share of the business. Not so. I ask Friendship sellers, “How much of your customer’s business are you getting?” They say, “I don’t know” or “All of it.” I ask, “How do you know?” They say, “Because the customer told me.” (Ha!) Many Friendship sellers are reluctant to thoroughly and consistently question customers on total purchases. Customers can be cryptic about volume. But we must push through these obfuscations. On to Leadership!
LeaderShip
Using thorough questioning, the Leadership seller understands their customer’s business as if they were working side-by-side. In the B-2-B world, this mainly involves the logistics of turning inventory. The Leadership seller knows why, when, how and how much their customer is buying—exactly—often better than their customer. On a macro level, the master seller knows their industry and the changes that are happening in it and, most importantly, how they affect their customer’s business. Many sellers fear leaving friendship behind when we move to the Leadership level. We don’t leave friendship with our customer behind any more than we leave our high school learning behind when we go to college—we build on it. The Leadership seller is respectful but not subservient. The Leadership seller moves to the ultimate level of the master seller—Partnership. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com
Building-Products.com
DEALER Briefs
City Mill Co. opened store #9 Nov. 16 in Ewa Beach (Honolulu), Hi. The unit’s 40,000 sq. ft. includes a 5,000-sq. ft. LBM/garden center.
BigHorn Materials , Silverthorne, Co., has closed after 28 years. At its peak five years ago, the company operated six stores.
Myers Group, Clinton, Wa., will add a 7,500-sq. ft. Ace Hardware store in downtown Seattle, Wa., during first quarter 2013.
great heir to the McFarland Cascade legacy, brand and organization,” said Corry McFarland. Greg McFarland added, “We have had a partnership with Stella-Jones in British Columbia, and the sale of the businesses to them will be a natural progression of that partnership over the past decade. It is time for Corry and me to pursue other things with our family now.” Stella-Jones operates 19 wood treating plants across 10 U.S. states and five Canadian provinces.
Reeb Pulls Out of West
Reeb Millwork, Bethlehem, Pa., closed its distribution center and prehanging facility in Kent, Wa., Nov. 23, after selling its door business to OrePac Building Products, Wilsonville, Or. With the Oct. 1 purchase, OrePac can now fabricate, prefinish, and distribute Therma-Tru doors in the Puget Sound region. Reeb continues to operate its window business from five DCs on the East Coast.
Billings Hardware, Billings, Mt., is considering adding a second, smaller location three miles away.
Ace Hardware Corp. presented Coolest Hardware Store awards to
Ace Mountain Hardware & Sports, Truckee, Ca., for successfully
combining multiple retail concepts under one roof, and to Hillcrest Ace Hardware, San Diego, Ca., for selling niche products such as appliances, gift items, pet products, and the work of local artists.
Habitat for Humanity is relocating its Marysville, Ca., ReStore to a 67,000-sq. ft. former Mervyn’s building—four times its current size. The discount LBM outlet is set to reopen Jan. 9.
McFarland Cascade Selling Out to Stella-Jones
McFarland Cascade, Tacoma, Wa., has agreed to sell all of its shares to utility pole and railway tie producer Stella-Jones Inc., Montreal, P.Q., for $230 million. The deal, which was expected to close in November, will expand Stella-Jones into producing treated lumber for residential uses, as well as distributing composite decking, railings, and related deck accessories. Founded in 1916, McFarland is one of the largest pressure treaters in the West, operating four plants in Washington, Oregon, British Columbia, and Mississippi. Corry and Greg McFarland, coc.e.o.s and third-generation family managers, will retire from ongoing operations following the close of the acquisition. “We are pleased with the acquisition and believe Stella-Jones will be a Building-Products.com
December 2012 The Merchant Magazine
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Capital Grows in West, Exits Texas
While expanding operations in the Pacific Northwest, Capital Lumber Co., Phoenix, Az., agreed to sell its DCs in Dallas and Houston, Tx., to Cedar Creek, Oklahoma City, Ok. The deal was expected to close by Nov. 30. “We will use this as an opportunity to focus our resources where we’ve proven to be the strongest—the western United States,” said Sam Sanregret, president of Capital, which continues to operate eight other distribution centers outside of Texas. Capital’s Portland, Or., branch is in the final stages of negotiating an additional 75,000 sq. ft. of space on its site. Geoff Richter will be overseeing the activity for Oregon. In addition, Capital’s Tacoma, Wa., DC—which operates as Cascade Capital—has added three acres adjacent to its current property. Mark McLain, most recently with Boise Cascade, will oversee the activity in Washington. Cedar Creek currently operates 13 DCs serving 20 states in the mid-South, Midwest and Southeast.
OSH Expanding Beyond California
Orchard Supply Hardware Stores, San Jose, Ca., has begun construction of its first stores outside of California— in Portland and Tigard, Or., which should be completed in the first half of 2013. “We have wanted to bring Orchard to Oregon for a long time, and we’re thrilled to finally be entering the market,” said Mark Baker, president and c.e.o. of the 89-unit chain. “Oregon’s community values, pride in ownership, and strong do-it-yourself mentality are ideals we’ve lived as a company for more than 80 years.” OSH is also evaluating additional locations in Oregon.
SUPPLIER Briefs
Hoff Cos., Meridian, Id., has purchased the assets of Allied Lumber Dealers, Denver, Co., to merge into its Trimco Millwork division. Buse Timber & Sales, Everett, Wa., temporarily laid off its second shift due to a log shortage.
Seattle-Snohomish Mill, Snohomish, Wa., restarted Nov. 5 after an eight-month closure. Capital Lumber Co.’s Portland, Or., and Tacoma, Wa., branches are now distributing Roseburg’s engineered wood products.
Boise Cascade, Riverside, Ca., is now exclusive distributor for SilvaStar in Southern California.
Huttig Building Products , Phoenix, Az., is now MaxiTile fiber cement siding in
exclusive distributor of Arizona.
OrePac Building Products’ branches in Denver, Co., and Salt Lake City, Ut., are now distributing AZEK exterior products in Co., Wy., N.M., Ut., Nv., and Id.
Gorman Brothers Lumber, Westbank, B.C., bought the forest products assets of Federated Co-operatives Ltd., including its plywood mill and sawmill in Canoe, B.C. Weyerhaeuser is now producing Edge Gold floor panels at its OSB plant in Arcadia, La.
Woodgrain Millwork, Fruitland, Id., will build a new facility in Lenoir, N.C., adding 170 jobs.
Scientific Certification Systems, Emeryville, Ca., has been renamed SCS Global Services. Osmose’s MicroPro preservative technology earned Environmental Claim Validation from UL Environment, confirming its low VOC content. Eco Building Products, Vista, Ca., has converted to Simpson Strong-Tie’s Component Solutions software to design and manufacture trusses.
À
JEC America’s inaugural composites show was so successful, exhibitor booking has begun for returns to Boston Oct. 2-4, 2013, and Oct. 28-30, 2014.
From everyone at Fontana Wholesale Lumber Inc.
P.O. Box 1070 – 15500 Valencia Ave., Fontana, CA 92335 Phone 909-350-1214 – Fax 909-350-9623
Tear out this handy industry calendar to plan your show visits during 2013.
www.fontanawholesalelumber.com
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The Merchant Magazine December 2012
Building-Products.com
WHAT YOU WANT. WHEN YOU NEED IT. Dimension Lumber Treated Products Domestic
Timbers Green & K.D. Export
ARCATA LUMBER’S environmentally friendly new building will more than triple retail space and cut yearly energy costs by nearly $12,000.
Arcata Lumberyard Upgrades
Arcata Do it Best Lumber is expanding and remodeling its historic location in Arcata, Ca. Once a contemporary new building is complete and existing buildings are remodeled, “it will look like a brand new piece of property,” said general manager Dean Kruschke. The store has remained open during construction, which began in August and is expected to be complete in late December. A grand opening is scheduled for April 2013. The environmentally friendly new building will more than triple retail space, yet exceed the stringent 2008 California Energy Building Code by 43%. Yearly energy costs are expected to drop almost $12,000, due to solar hot water and heat recovery systems, radiant floor heating, and automatically controlled skylights and LED light fixtures. The current building will be refurbished and remodeled to serve as a design center with displays of windows, doors, countertops and more. “People can come in and have a nice environment to get ideas and shop,” said Kruschke. An old barn on the southeast corner of the property will be repaired, re-sided, and re-roofed, then used as a dedicated contractor sales office. Other planned improvements include seismically stable lumber racks. “It’s rewarding to be able to add jobs to the community, rejuvenate such a historic block in Arcata, and increase the energy efficiency of a retail store while creating more than three times the floor space of the existing facility,” he said. Owners Brendan, Kevin and Neal McKenny also operate Myrtletown Lumber & Supply, Eureka, Ca.
CLTs Earn Code Approval
The International Code Council (ICC) has approved the American Wood Council’s proposed code change to expand the use of cross laminated timber (CLT) in non-residential buildings. “Having worked closely with ICC code and fire officials, AWC was able to quickly answer questions raised about the proposal,” said Kenneth Bland, v.p.-codes and regulations at AWC. “The strong support for the proposal shown by ICC members is validation of the ICC process when all stakeholders work together to maintain state-ofthe-art codes.” The now-approved code will be published in late 2014 and will be available for jurisdictions to adopt in 2015. 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 December 2012 The Merchant Magazine
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MOVERS & Shakers
Scott Watson, ex-J.E. Higgins, is a new account mgr. at Capitol Plywood, Sacramento, Ca. Frank Forward, ex-Commco, is new to sales at Blasen & Blasen Lumber Corp., Portland, Or. Jason Simms, ex-Allied Building Products, has joined HPM Building Supply, Keaau, Hi., as sales mgr. of roofing & accessories for all branches. Kay Lanham-Sholseth, ex-Milgard Manufacturing, is new to business development & sales at Honsador Lumber, Kapolei, Hi. Jim Baskett has joined the sales force at General Builders Supply, Tukwila, Wa. Kathy Corbin, ex-Modern Millwork, is now in inside sales at Alexandria Moulding, Yakima, Wa. Christy Long, ex-Astoria Builders Supply, is now managing the new custom cabinet and closet department at Brothers Door & Trim, Gearhart, Or. Samantha Osselaer has been named v.p. of marketing at Orchard Supply Hardware, San Jose, Ca.
Craig Warnimont, ex-Lowe’s, has joined the outside sales team at Rocky Mountain Bluwood/Northern Crossarm, Denver, Co. Steve Hanson has been promoted to president of Hanson Truss Components, Olivehurst, Ca. Chris Brink has been named production mgr. at Moulding & Millwork, Ferndale, Wa. Brannan Olsen, ex-Reeb Millwork, is now with Marvin Windows & Doors, as territory mgr. for Idaho and eastern Washington. He is based in Liberty Lake, Wa. Susan Haws, ex-BigHorn Materials, has been appointed assistant mgr. at Idaho Springs Lumber & Hardware, Idaho Springs, Co. Steve Pham has joined ProBuild Holdings, Denver, Co., as program director. Mary Rhinehart has been promoted to c.e.o. of Johns Manville, Denver, Co., succeeding Todd Raba. Lonny Low, ex-Lowe’s, is new to sales at Mountain View Window & Door, Denver, Co.
Vickie Rapp has been named California assistant controller at Green Diamond Resource Co., Eureka, Ca. Steve Taylor, ex-Stock Building Supply, has been appointed national sales mgr. for Knight Wall Systems, Deer Park, Wa. Tina Wright, ex-Spec Building Materials, is new to outside sales at Atlas Roofing Corp., Denver, Co., covering Co. and N.M. Jeffrey Anderson, ABC Supply, Monrovia, Ca., has been promoted to a managing partner, along with fellow branch mgrs. Jason McKinley, Mesa, Az., and T.J. Neil, Denver, Co. Lynn Michaelis, ex-Weyerhaeuser, is now with Forest Economic Advisors, Westford, Ma. Mike Post has been promoted to merchandise mgr.-home decor for Do it Best Corp., Fort Wayne, In. Will B. Watching is head of security at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
Holiday Greetings from Parr on our 37th Christmas Jesus Aldrete Raul Aldrete Antonio Avina Paul Blevins Norm Boucher Edward Butz Jose Chicas Rosario Chicas Karen Currie Nick Ferguson Vince Galloway
Ricardo Garcia Fidenceo Gomez Henry Herrera Leticia Herrera Chris Hexberg Jerry Long Joe McCarron Bert McKee Luis Moreno Brad Mortensen Rafael Pantoja
George Parden Timoteo Paredes Michael Parrella Peter Parrella Kurt Peterson Eduardo Pierre Janet Pimentel Nestor Pimentel Yolanda Rodriguez Alex Romero Bill Sharp
Angela Sorensen Lois Tavenner Melinda Taylor Peter Ulloa Enrique Vargas Oscar Villegas Robert Williams Pamela Winters Matt Wright Terry Yarbrough
Thank you to our Customers and Suppliers 22
The Merchant Magazine December 2012
Building-Products.com
IN Memoriam
Don Dye, 65, sales manager at Mary’s River Lumber Co., Corvallis, Or., died Nov. 14 while on a business trip in British Columbia.
James Henry “Jim” Murray, 84, retired general sales manager at Fiberboard Wood Products, Sonora, Ca., died Oct. 22 in Sonora. He began his 43-year lumber career at Pickering Lumber, Standard, Ca., after graduating from St. Mary’s College, Moraga, Ca., in 1951. In 1995, he retired from Fiberboard. Robert S. Ashenberner, 87, former owner of Ashenberner Moulding Co., Medford, Or., died Nov. 7 in Medford. His participation in the Battle of the Bulge during World War II brought him a number of awards, including the Purple Heart and the Victory Medal. He started Ashenberner Moulding in 1960, later changing the name to Ashenberner Lumber and ultimately Southern Oregon Lumber. He retired in 2006, after the firm was liquidated.
William Ward “Bill” Wells, 86, former v.p. of timberlands and manufacturing for Champion International, died Nov. 2 in Sumpter, Or. After serving as a corporal in the U.S. Army Air Corps during World War II, he graduated from the University of Oregon. In 1959, he joined Bear Creek Logging Co., Anderson, Ca., and stayed on after it merged into U.S. Plywood Corp. USP was acquired by Champion in 1970.
Sharon Asako Shigemoto, 69, retired purchasing agent for City Mill Co., Honolulu, Hi., died Nov. 11 in Ewa Beach, Hi.
Christian Miller “Chris” Snavely Jr., 88, chairman emeritus of Snavely Forest Products, Pittsburgh, Pa., died Oct. 24 in Pittsburgh. In 1942, while in the Army, he was captured during the Battle of the Bulge and spent three years as a POW. He also served in the Korean War. He joined Germain Lumber, Pittsburgh, in 1954 and purchased the company four years later. The name was changed to Snavely Forest Products in 1977. He was a former chairman of NAWLA, which honored him with its Mulrooney Award in 1999. Building-Products.com
December 2012 The Merchant Magazine
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MANAGEMENT Tips By Dennis Connelly
Recruiting in the new sales environment
T
HERE’S A SLOW, SUBTLE
shift underway in how building materials companies are recruiting salespeople. In my recent conversations with distributors, I found it interesting to learn just how surprised they were by this major change, since it goes against years of conventional wisdom. After three decades of selling to and for LBM distributors and retailers, and training hundreds of sales staff, I am excited about finally being able to help companies navigate through these trying times. Why are these changes occurring? Selling has undergone a massive shift in the past 10 years. If your salespeople are still selling transactionally—presenting features and benefits—or they are selling only on the strength of their great long-term relationships, then they are having difficulty generating business from new accounts, as well as growing their existing accounts.
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The Merchant Magazine December 2012
Customers are more educated and, in some cases, they know more than the typical salesperson of 10 years ago. Back then, the salesperson educated the customer, who often welcomed the information. Today, customers usually know what they want and are looking for the best value or—worse—the best price. Salespeople are learning that the relationship is not enough to overcome resistance and objections. Today, a consultative approach that uncovers problems and opportunities and leads to discussions about issues that your customers hadn’t considered works best to differentiate your company and move your salespeople away from commodities and prices. They must develop the ability to ask a lot of good, tough, timely questions while using an effective sales process. Customers must notice your salespeople. They need to
Building-Products.com
recognize that you are different. Your salespeople must get their undivided attention above all the noise of competing people and products. That’s your point of differentiation. When you call, they take the call, not because they like you, but because they rely on you! And that brings us to the shift we are seeing in how sales staffs are recruited today. If you agree that there are vast differences in selling-skill requirements today, then where do you find the talent to meet the challenge? One distributor recently hired someone away from a call center in an unrelated industry. He said, “This guy comes in with no call reluctance whatsoever. He’s just used to it. He knows how to sell and he’s making inroads where we hadn’t performed well in the past.” None of this implies that there isn’t tremendous value in industry knowledge. The question is, can veterans in our
industry make the shift to a new way of selling and maximize growth? If not, can you grow your company more effectively by bringing in talented selling superstars, regardless of their industry background? Has your company returned to double-digit annual growth? If not, why? Are your people saying, “We can’t do this, because…?” You can’t use the economy as an excuse. You need to be thinking very hard about two things: • Can my existing salespeople make the required changes in order to return us to double-digit growth? • Can we succeed by hiring the same kinds of salespeople that we have always hired? The shift from traditional industry professionals toward salespeople with consultative selling skills is an important and timely change. Are you ready to make this change?
– Dennis Connelly is an experienced lumber industry executive who also served on the Joint Coatings Forest Products Committee. He is now v.p. of business development at international sales consulting firm Kurlan & Associates. Reach him at (508) 320-4900 or dconnelly@kurlanassociates.com.
Respecting the forest, honoring the past, building the future. A nation’s pride you can build on.
Happy Holidays Manufacturers of 10 million bd. ft. monthly of • 5/4 & 6/4 Ponderosa Pine Shop • 4/4 Premium Pine Board Programs
from all of us at
State-of-the-Art Hewmill & Headrig Mill Contact Sheldon Howell
Alicia Beltran
(509) 874-1163
(509) 874-1168
Yakama Forest Products 3191 Wesley Rd., White Swan, WA 98952 Fax 509-874-1162
www.yakama-forest.com Building-Products.com
Distributor of
Medford, OR. • (541) 535-3465 • FAX 541-535-3288
(800) 365-4627 www.normandist.com December 2012 The Merchant Magazine
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ASSOCIATION Update
THE ELITE ATHLETES of the Los Angeles Hardwood Lumberman's Club converged on Anaheim Tennis Center, Anaheim, Ca., Nov. 4 for the club’s annual tennis mixer. Despite the atypical 90˚ fall weather, the three-hour event was well attended. Tournament host, Chapman University Hall of Fame member and
LAHLC president Dan Bohannon, organized the mixer. (L-r) David Church, Matt Porter, Randy Porter, Ellie Mendiaz, Mike Walters, Teresa Hallock, Grace Wright, Julie Southwell, Dan Bohannon, Kit Rohm, Stephen Ondich, Vivian & Eric Bloom, Leon Richman.
Western Building Material Association will host its 109th annual convention Jan. 30-Feb. 1 at the DoubleTree Lloyd Center, Portland, Or. Presentations include an economic outlook by John Mitchell, LBM industry update by Craig Webb, leadership and team building program by Ken Wilbanks, and strategic marketing talk by Scott Ericson and Jennifer Swick, Wheelhouse 20/20. Los Angeles Hardwood Lumberman’s Club will host its first meeting of the year at Heroes Restaurant, Fullerton, Ca., on Jan. 10. Feb. 7 is the annual pool tournament at Danny K’s, Orange, Ca.
Western Pallet Association will gather Jan. 18-22 for its annual meeting at Rancho Las Palmas Resort, Rancho Mirage, Ca. California Forestry Association has scheduled its annual meeting for Jan. 29-Feb. 1 at Silverado Resort, Napa, Ca.
American Wood Council elected Fritz Mason, Georgia Pacific, as its new chairman during the association’s annual meeting in Chicago, Il. Other new officers are 1st vicechair Rob Taylor, Weyerhaeuser; 2nd vice-chair George Emmerson, Sierra Pacific, and immediate past chairman Brian Luoma, Louisiana Pacific. New directors are Andrew Miller, Stimson Lumber; Marc Brinkmeyer, Idaho Forest Group; Tom Corrick, Boise Cascade; Danny White, T.R. Miller Mill; Aubra Anthony, Anthony Forest Products; Ray Dillon, Deltic Timber; Michael Giroux, Canadian Wood Council; Pat Patranella, Temple-Inland; Jim Rabe, Masonite, and Joe Patton, Westervelt Co.
National Lumber & Building Material Dealers Association will present a webinar on “Understanding the New Federal Trade Commission Green Guides” Dec. 18. FTC recently revised and expanded its Green Guides, which are designed to help marketers ensure that the claims they make about the environmental attributes of their products are truthful and non-deceptive.
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The Merchant Magazine December 2012
Building-Products.com
NEW Products
Breathable Wraps Hybrid Stain
A hybrid stain concentrate from Eco Chemical promises high quality at lower cost. Available in 5-gallon pails, Eco 3-to-1 can be mixed to produce 20 gallons of semi-transparent stain. Lower dilution ratios will result in a solid stain. The product combines the beauty of an oil-based stain with the eco-friendly characteristics of a waterborne stain, in both interior and exterior applications.
ECOCHEMICAL.COM
NovaWrap breathable, weather-resistant barrier for both residential and commercial applications is new from IPG. Made of non-woven polypropylene, the wrap is coated on one side for durability and resistance to water and tears. Compatible with nearly every type of sheathing, it installs easily under brick, stone, fiber cement board, wood, vinyl, metal, and composites.
ITAPE.COM
(800) 474-8273
(800) 677-7930
Toolboxes on the Go
Nautical Accents
The Beachfront collection by Themed Millwork includes 18 hand-carved keystones, onlays, and rosettes. Depicting ocean creatures and nautical designs, they can be used as accents for furniture, mirrors, chalkboards, and mirrors.
THEMEDMILLWORK.COM (866) 355-6311
Building-Products.com
Contractor toolboxes from Buyers Products Co. are available in aluminum, steel and polymer in a variety of sizes and configurations. Cross-boxes suspend from truck side rails, with Jhook mounting hardware that does not require drilling, to provide easy access to contents from either side. Lo-side and pork-chop boxes have low profiles for space efficiency. Topside boxes, available in dimensions up to 96� wide, provide easy access through continuous-hinge doors.
BUYERSTRUCKBOXES.COM (440) 974-8888
December 2012 The Merchant Magazine
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REEL
LUMBER SERVICE
1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806
Fax 714-630-3190
(714) 632-1988 • (800) 675-REEL 3518 Chicago Ave., Riverside, Ca. 92507
(909) 781-0564
Wholesale Industrial Lumber • Pine
• Plywood
• Mouldings
• Hardwood Lumber
y p p a H ! s y a Holid
Majestic Flooring
South Mountain’s Palazzo hardwood flooring offers the strength and durability of Asian teak. Four colors are available in solid hardwood, three in an engineered, wire-cut option. Both are protected with six coats of UV-cured Treffert aluminum oxide.
SOUTHMOUNTAINFLOORING.COM (516) 487-3510
Ultra-Smooth Rolling
Specialists in Hardwood Milling • Oliver Straitoplaner
Purdy’s Ultra Finish roller cover deliver an ultrasmooth finish for all interior painting projects. Its microfiber covers resist paint buildup to provide an even release of paint, whether satin, semi-gloss, or gloss. It comes 9” long in varying nap thicknesses.
PURDY.COM
(800) 547-0780
• Straight Line & Multiple Rips • Stickers
• Newman Straight Knife Planer
REGAL CUSTOM MILLWORK
301 E. Santa Ana St., Anaheim, Ca. 92805
(714) 632-2488 • Fax 714-776-1673
www.reellumber.com
Reel Lumber Service and Regal Custom Millwork are affiliated companies
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The Merchant Magazine December 2012
Look of River Rock
Mediterranea’s River Rock tile collection offer the look of stone in four natural colors. Sizes include 12”x24”, 18x18, 12x12, and 6x6, along with 2x2 mosaic pieces and 3x12 bullnose.
MEDITERRANEA-USA.COM (305) 718-5091
Building-Products.com
On Your Marks
Matthews Marking Systems offers the HP-2600 high resolution, thermal inkjet printer for the LBM industry. The printer can control up to four cartridge modules, enabling four different print locations or combining them to create up to 2” high messages. A variety of different inks allow both porous (case coding, fiberboard, gypsum, lumber) and non-porous (PVC, PET) applications. Message options include graphics, barcodes, date/time, counters, and text fields.
MATTHEWSMARKING.COM (412) 665-2531
PVC Skirtboard
Restoration Millwork cellular PVC skirtboard from CertainTeed offers a seamless look for fiber cement siding projects that can be used as a transition panel between siding styles. The 12’-long, 6”- or 8”-wide boards meet code requirements for ground clearance. Options include a paintable white finish, smooth or woodgrain texture.
CERTAINTEED.COM (800) 233-8990
Building-Products.com
December 2012 The Merchant Magazine
29
TRADERS MARKET Photos by The Merchant
TRADERS MARKET returned to Chicago, Il., Nov. 7-9. [1] Trevor Ewert, Steve Barth, Sean Nason. [2] David Weak, John Smith. [3] Steve Burdick, Sean Burch, Ray Barbee. [4] Mike Smith, Ali Jojo. [5] Jim Poulin, Jeff True. [6] Ryan Furtado, Brad Flitton, Daniel Rocha, Jeff Cook. [7] Chad Miller, Doug Coulson, Todd Lindsey. [8] Graham Picard, Jessica Perera, Ted Dergousoff. [9] David Warford, Bill Hurst. [10] Dirk Kunze,
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The Merchant Magazine December 2012
Shane Harsch, Janet Wheeler, Kirk Nagy, Darrel Hanson, Doug Clitheroe. [11] John Smart, Matt Pedrone, Jim Tittle. [12] Leo Colantuono, Kim Glaeser, Todd Askew. [13] Mike Logelin, Wes Bush, Wayne Jordan. [14] Kathi Orlowski, Mark Erickson. [15] Bruce Burton, Denny McEntire, Ernie Burton. [16] Steve Firko, Bryant Beadles, John Smith. [17] Trish Roche, Ken Tennefoss. (More photos on next 4 pages) Building-Products.com
TRADERS MARKET Photos by The Merchant
2012 TRADERS MARKET (continued from previous page) was back at Chicago’s Hyatt Regency. [1] John Walcott, John Branstetter, Chris Schofer, James Lambert. [2] Bob Goral, Rick Wearne. [3] Raymond Luther, Larry Petree. [4] Kip Anderson, Stuart Ralston, Steve Anderson. [5] Leo Paradis, Keith Lolley. [6] Jeff Ruble, Todd Wright. [7] Charley Brittain, Doug Heryford. [8] Wade Mosby, Eric Schooler, Josh Dean, Alyson Kingsley, Kevin Paldino. [9] Cat Byers, Devon Lindquist. [10] Peter Krihak, Building-Products.com
Derek Demeo. [11] Michael Booth, Mike Pidlisecky, Matt Yates. [12] Ira Feingold, Drew Homan, James Gibson. [13] Sheldon Howell, Alicia Beltran. [14] Dillon Forbes, Mike Theberge, Jim Olson, Bill Price. [15] Ron Cluster, Terry Baker. [16] Doug Chiasson, Susan Coulombe. [17] Chuck Gaede, Alex Darrah, B. Manning. [18] Tom & Dianne Franklin, Danny Osborne, Ron Liebelt. [19] Jeff Fantozzi, Frank Stewart. [20] Gary Converse. (More photos on next 3 pages) December 2012 The Merchant Magazine
31
TRADERS MARKET Photos by The Merchant
MORE NAWLA (continued from previous pages): [1] Jean-Marc Dubois, Tony Saad, Archie Landreman, Albert Renaud. [2] Pam Mitchell, Kris Owen, Sara Bond. [3] Jim Enright, Tim Lewis, John Murphy Jr. [4] Jessica Navascues, Kevin Keen, Tom Taylor. [5] Jim Griswold, Amy Vitek. [6] Jim Wolf, Mike Hoag, Chris Hedlund. [7] Jason Friend, David Bisaillon, Mark Carter, John Cooper, Joe Albert. [8] Bob Dewald, Greg Haupt, Matt Weaber. [9] Jordan Hollis, Bob Loew, John Dawick. [10] Keith Abbott, Eric Wischmann, Bart Bender, Chris Wischmann. [11] Jim Haygreen, Tunstall Inge, Bucky Adams, Gary Burch. [12] Tom Rice, Bob Bell. [13] Chuck Casey, Darrell Hungerford. [14] David Battaglia, Jack Bowen, Kevin Hynes, Kevin Murphy, Matt Duprey, Dan Paige. [15] Clint Darnell. [16] Kim Pohl, Kyle Loveland. [17] Josh Goodman, Jim Futter. [18] Mike Gerstenberger, Bob Hafner. (More photos on next 2 pages)
32
The Merchant Magazine December 2012
Building-Products.com
TRADERS MARKET Photos by The Merchant
TRADERS MARKET convened in Chicago (continued): [1] Steve Killgore, Mark McLean, Gary Pittman, Mickey Brown. [2] Leah Heneghan, Barry Haugh, Peggie Bolan, Tim Hiller. [3] Michael Kirkelie, David Smith, Jim Walsh, Mark Denner. [4] Reed Rediger, Jim Hassenstab, Anthony Muck. [5] Mike Flynn, Derek Dryden, Marc Mendenhall, Bob Mai, Don Graver. [6] Lowell Crossley, Bill Anderson, Stephen Fowler. [7] Jeff Cook, Chris Boyd, Peter Fograscher, Jason Mann, Todd Shipp, Dave Cochenour. [8] Jim Hand, Brad Schneider, Barry Schneider. [9] Tony & Darlene Wiens, Pat Thorp. [10] Terry Neal, Renee Vachon, Jacquie Hess. [11] Brad Johansen, Mike Thelen. [12] B.L. Johnson, Racy Florence, David Cox, Calvin Biddix. [13] Patrick Taleghani, Ward Mintzler. [14] Alan Oakes, Courtney Watkins. [15] Tony Fleischman, Josh Fleischman. [16] Bob Jahns, Jim Vandegrift. (More photos on next page) Building-Products.com
December 2012 The Merchant Magazine
33
TRADERS MARKET Photos by The Merchant
EVEN MORE TRADERS MARKET (continued from previous 4 pages): [1] Mark Swinth, Brett Slaughter, Rick Yonke, Dave Billingsley. [2] Larry & Kathy Boyts, Janel & Scott Jarrett. [3] Jim Robbins, Alden Robbins, Roger Champagne. [4] Lee Greene Jr., Leslie Southwick. [5] Craig Sichling, Shawn Enoch, Joe Hanas. [6] Milt Farvour, Mark Musgrove, Laurie Creech, Mike Davis. [7] Jeff Morlock, Chris Johnson. [8] Jim McCluskey, Jeff Norman. [9] Bill Jones, Phil Schumock, Chris
34
The Merchant Magazine December 2012
Myers. [10] Rick Palmiter, Mason Anderson, Ahren Spilker. [11] Konrad Tittler, Rob Breda. [12] Bernie Nugent, Win Smith. [13] Mark & Peggy Cheirrett. [14] Leonard Testa, David Jeffers. [15] Doug Reid, Adam Gangemi. [16] Donna Allen, Joe Brown, Christopher Webb. [17] Jeff Easterling. [18] Leyland Klassen, Brian Boyd, Kathy Klassen. [19] Lawrence Newton, Carl McKenzie. [20] Mike Lermer, Bill Griffith. [21] Joel Cone. Building-Products.com
WESTERN RED CEDAR Photos by The Merchant
THUNDERBOLT WOOD TREATING
WESTERN RED CEDAR Lumber Association hosted a business presentation during the recent NAWLA Traders Market in Chicago, Il. [1] Jack Draper, Cees de Jager, Jeff Derby. [2] Gary Arthur, James O’Grady, Janet Wheeler.
[3] Michael Mitten, Tom LeVere. [4] Raymond Luther, Bruce Tays. [5] Otis Beveridge, Reed Brunson. [6] Warren Reeves, Scott Lindsay, Harry Lund, Jerry Bolt. [7] Dave Bolgren, Paul Boehmer, Larry Petree. [8] Ryan Furtado,
Brad Morrow. [9] Philippe Caissy, Charles Tardif. [10] Doug Clitheroe, Bill Griffith. [11] Mike Lermer, Garth Williams. [12] Chris Musselman, Shane Harsch, Robert Sandve, Kyle Jones. [13] Dorothy & Patrick Sinclair.
…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
December 2012 The Merchant Magazine
35
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. Send ad to Fax 949-8520231 or dkoenig@ building-products.com. For more info, call (949) 852-
HELP WANTED
NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.
PRODUCTS FOR SALE
INVENTORY ITEMS: • Dry Incense Cedar S/Quality TK Blanks Rough R/L, 2x6 $700m, 2x8 $735m. • 2x4 thru 2x12 Western Red Cedar Dry TK Blanks S4S R/L. Contact for list of “Specials.” Majestic Forest Products, Eugene, Or., (541) 345-4990; Fax 541-345-8131, or email majesticforest@hotmail.com.
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36
Updated Daily
HKelly@building-products.com
reasons to do green work are client demand (35%) and market demand (33%). Other reasons included lower operating costs (30%) and branding advantage (30%). Greater health and wellbeing was cited (55%) as the top social reason for building green, as was encouraging sustainable business practice. Energy-use reduction topped the environmental reasons for green building; 72% said it is the important environmental reason to engage in green building. Water-use reduction was cited by 25% of respondents, up from 4% in 2008. Improved indoor air quality is also more important today; 17% cited this as a top reason to engage in green building, up from only 3% in 2008. In contrast, the top reasons cited in
2008 were doing the right thing (42%) and market transformation (35%), followed by client and market demand. “It is notable that over the next three years, firms working in countries around the world have green work planned across all building types, incorporating both new construction and renovation,” said Harvey M. Bernstein, vice president of industry insights and alliances for McGraw-Hill Construction. “It is clear that green is becoming an important part of the future landscape of the global construction marketplace, and firms will need to be prepared for that transition.” Green building is also expected to garner business benefits for building owners. For new green building projects, firms report median operating
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Despite the economic downturn, green building continues to accelerate around the world, according to a new construction study from McGrawHill. “This research confirms that green building advances environmental stewardship while providing value to the market,” said Geraud Darnis, president and c.e.o. of United Technologies Climate, Controls & Security, which helped prepare the study. “It also confirms that we now see more pull than push for green buildings.” The study indicates that the global construction market views green building as a business opportunity rather than a niche market. Respondents reported that their top
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The Merchant Magazine December 2012
Building-Products.com
PAC 12 TAILGATE Photos by Jones Wholesale Lumber
JONES WHOLESALE Lumber, Lynnwood, Ca., hosted an industry tailgate before the Nov. 3 USC Trojans vs. Oregon Ducks football game at the Los Angeles Coliseum. [1] Stephanie Rasmussen, John Rogers, Jennifer Salazar. [2] Jim & Kim Nicodemus. [3] (front) Mona Ayers, Mark Highfill, Robyn Bennett, (back) Donna McCullough, John Glenn, Debbie DeLatte. [4] John Murphy Jr., John Pasqualetto, Mark Highfill. [5] Jami Klopfer, Troy Bailey. [6] Dustin Heusser, Andrea Boyd. [7] Greg Carter. [8] (front) Fia Faumina, (back) Joey Madrigal, Ana Ramirez, Maria Saldana, Kyle Gillings, Chris Huntington. [9] Rick Jones, Dave Ramos. [10] Debbie DeLatte, Mona Ayers.
cost savings of 8% over one year and 15% over five years, as well as increased building values of 7% (according to design and construction firms) and higher asset valuation of 5% (according to building owners). “We’ve been on the ground watching the markets shift to green around the world,” said Jane Henley, president of the World Green Building Council. “Today, there are green building councils in 92 countries around the world—more than double what it was when we first looked at the green building market globally in 2008.” The study also revealed that approximately 48% percent of the work by U.S. respondents was green—and that share is expected to increase to 58% by 2015. Building-Products.com
Happy Holidays and Thank You.
With All Our Best Wishes for 2013. building
ROCKLIN DISTRIBUTION CENTER
Tel. (800) 348-1400 • (916) 624-9293
products
SANGER DISTRIBUTION CENTER Tel. (855) 348-1500
www.taigabuilding.com
December 2012 The Merchant Magazine
37
Sunbelt [www.sunbeltracks.com] ..............................Calendar 22, 29
ADVERTISERS Index
Swanson Group Sales Co. [www.swansongroupinc.com]...........8
For more information on advertisers, call them directly or visit their websites [in brackets].
Advantage Trim & Lumber [www.advantagelumber.com]..........29 AERT [www.aertinc.com]..................................................Calendar 14
Arch/Lonza [www.wolmanizedwood.com] ........................Calendar 4
Building Material Distributors [bmdusa.com]....Cover II, Cover IV Cal Coast Wholesale Lumber ........................................................38 C&D Lumber Co. [www.cdlumber.com]...........................Calendar 10
C&E Lumber Co. [www.lodgepolepine.com] ...............................11 Capital [www.capital-lumber.com]............................................4, 29
Capitol Plywood [www.capitolplywood.com] ................................5 Fontana Wholesale Lumber [fontanawholesalelumber.com].....20 Great Southern Wood Preserving [yellawood.com].......Calendar 12
Huff Lumber Co. .............................................................................19
Jones Wholesale Lumber [www.joneswholesale.com] ..............17
Kelleher Lumber Sales [www.kelleher.com]........................Cover I Keller Lumber Co............................................................................26
Manke Lumber Co. [www.mankelumber.com].............................21 Matthews Marking Products [matthewsmarking.com].....Calendar 6
Nordic Engineered Wood [nordicewp.com]..............17, Calendar 18 Norman Distribution Inc. [www.normandist.com].......................25 North American Wholesale Lumber Assn. [nawla.org]..Calendar 20
Parr Lumber ....................................................................................22 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....23
Peterman Lumber Inc. [www.petermanlumber.com] ..................26 Plycem USA [www.plycemtrim.com] ...............................Calendar 16
QB Corp. [www.qbcorp.com]..............................................Calendar 8
Redwood Empire [www.redwoodemp.com]....................Calendar 24
Reel Lumber Service [www.reellumber.com] ..............................28
Regal Custom Millwork ..................................................................28
Rosboro [www.rosboro.com] ........................................................24
Roseburg Forest Products [www.rfpco.com] ..............................13
SilvaStar [www.silvastar.com] ........................................................3
Straight Line Transport [straight-line-transport.com]....Calendar 26
Taiga Building Products Inc. .........................................................37
Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....35
Weyerhaeuser [www.weyerhaeuser.com]......................................7 Yakama Forest Products [www.yakama-forest.com]..................25
IDEA File Cash for the Holidays
What with the free food, door prizes, and gifts, there’s a lot to like for builder-customers and prospects attending the annual holiday bash of Croft Lumber, Sayre, Pa. The party starts with dinner and continues with demos and exhibits from 30 to 40 vendors. Then it’s on to door prizes and the big event of the evening: 1% rebate checks for customers who’ve spent more than $12,000 at the store and have active accounts. “When our dad died in 1998, I was looking for new ways to connect with local builders and expand the business,” says Warren Croft, who co-owns the business with his brother, Michael. “That first year, we handed out cash rebates, just like our dad had.” The event also got a little bigger each year, moving to larger and larger venues. When a local casino opened five years ago—largely built with materials from Croft Lumber—the party was moved there. The rebates had gotten so large, they had to be handed out in check form instead of cash. “We don’t give store credit,” says Warren. “We want to make it feel like a real gift for our customers, who often come in the following day and buy new tools or other needed goodies.” Not surprisingly, customers often take the stage to express thanks for Croft and its helpful employees. “They appreciate that we’re investing in them,” says Warren. “It helps create a team feeling, a sense of family, with our customers. And that’s a great thing, especially at the holidays.”
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 info@wetreatwood.com
Sales for Coast Wood Preserving
38
The Merchant Magazine December 2012
Building-Products.com
Feature your Business Card in The Merchant Say Happy New Year and help at-risk students Use this low-cost opportunity to send New Yearʼs wishes to customers, friends and suppliers—and help the Freedom Writers Foundation, which provides college scholarships for low-income, first-generation high school graduates and powerful training for educators. Your business card—reprinted in color and reduced slightly—will appear in a special section in our January issue. The cost for each ad is just $100, $25 of which is tax deductible and will be matched by us—for a total donation of $50 to Freedom Writers Foundation. The Freedom Writers Foundation is a nonprofit organization focused on the overall improvement of education for at-risk students. The foundation believes that every child has the right to learn in a
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Deadline: Dec. 21, 2012
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