The Merchant Magazine June 2010

MERCHANT

HI-TECH APPS FOR LBM GUIDE TO HOUSEWRAPS SIDING FORECAST

The

JUNE 2010

Magazine

THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

There’s no wood quite like redwood.

Scott Padgett, designer/builder at Padgettdesign.com.

©2010 The California Redwood Company. All rights reserved.

There’s no company quite like The California Redwood Company.

When you partner with The California Redwood Company, you’re not just getting a unique and beautiful wood product, you’re getting the experience and innovation only a company that’s been around for 120 years can bring.

This year, we’re continuing with our spirit of constant improvement with the addition of two newly designed wood products, along with enhancements to our current products.

We’re also launching a new marketing campaign, including a completely new website, a new identity and collateral system, and a robust in-store training program. The campaign, entitled “Build history” tells the rich story of The California Redwood Company and inspires homeowners to build something truly special — all of which translates to new and higher margin opportunities for you.

We hope you’ll call us at 1-800-637-7077 or visit californiaredwoodco.com to learn more about what a partnership with The California Redwood Company can mean. And find out if together, we can build history.

LEGACY PROFILE

ALPINE

SUMMIT PROFILE — Limited Edition

CLASSIC HEART

MERIDIAN PROFILE — Limited Edition

PREMIUM BLEND

The

MERCHANT

Special Features 9 INDUSTRY TRENDS EXTERIOR SIDING FORECAST

10 INDUSTRY TRENDS IPHONE

APPS FOR THE LBM BUSINESS

12 FEATURE STORY COMPLYING WITH THE LACEY ACT

16 PRODUCT SPOTLIGHT HOUSEWRAPS & RAINSCREENS

18 MANAGEMENT TIPS SECURE THE RIGHT DOMAIN NAME

20 COMPETITIVE INTELLIGENCE N.Y. DEALER PATIENTLY EXPANDS

40 MANAGEMENT TIPS PUT THE BRAKES ON “DWT”

Magazine

Online

In Every Issue 6 TOTALLY RANDOM 22 OLSEN ON SALES 24 GREEN RETAILING 32 MOVERS & SHAKERS 38 FAMILY BUSINESS 44 KAHLE ON SALES 45 IN MEMORIAM 46 NEW PRODUCTS 51 ASSOCIATION UPDATE 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX

June 2010

Volume 88 Number 12

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The Merchant Magazine (USPS 796-560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 926601872 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®2010 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.

California Timberline, Inc.

42 FEATURE STORY

REAL OUTDOOR LIVING: BIRD’S-EYE VIEW OF MARKETING SUCCESS STORY

Sugar and Ponderosa Pine, Douglas Fir, Redwood, Western Red and California Incense Cedar Hardwood Lumber & Plywood Chino, CA 91710 •

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The Merchant Magazine June 2010

The Mark of Responsible Forestry SCS-COC-001973 ®1996 Forest Stewardship Council A.C.

(909) 591-4811 • FAX (909) 591-4818 Building-Products.com

TOTALLY Random

By Alan Oakes

E

Are you another Toyota?

at your auto dealership to get your gas accelerator or your braking system fixed, you have certainly heard of the issues Toyota has gone through these past few months. What was most surprising was that, whether or not we drove a Toyota, most of us shared the view that it was a great company that produced superior cars.

So how was it possible that such an iconic brand failed to deal with obvious problems, got chewed up in the jaws of the press, and seemed to go into hiding?

They showed that not only may their cars not have been what they were positioned to be (considering around 8 million of them were recalled), but also that as a company they had no clue how to handle a crisis. Maybe egos were too large.

Perhaps, while lives were at stake, Toyota’s top brass was in denial. Similar problems can crop up at any company, in any industry. Nobody escapes untarnished these days—nor, if they’re guilty, should they.

In the world of LBM, we have faced our own maulings, either as individual companies or as part of our industry sector. Whether it was clear-cutting, lead paint, CCA, mold, defective decking, and any number of other issues, we learned that in an age when you cannot control information or its speed of flow, you cannot bury your head in the sand and hope crises evaporate. They don’t. In some cases there may not be a shred of truth in the accusations, but as with CCA, the charges get completely overblown, facts get distorted, and those who shout the loudest create the perceived truth in people’s minds, even if completely wrong.

Today you have to recognize the truth, and then fess up and tell the absolute truth—the whole truth and nothing but. You cannot allow others to fill in the blanks on parts of the issue you feel uncomfortable with. You have to give a complete account of what went wrong, why, and how you will fix it.

Too many companies lack leaders who are willing to listen to the truth and a culture that allows the truth to percolate up. Employees may be fearful of bringing up bad news. Do you shoot the messenger? Are your meetings conducted in a way where issues can be presented, or does bad news never get past the water cooler?

You also need to get ahead of the issue. So many companies bury problems until they are exposed from the outside. They are then reactive instead of being proactive. Damage control is much more difficult and expensive when someone else breaks the bad news. It costs more to rebuild a brand than to build it in the first place. Your message must be clear, precise, and consistent for all audiences, including your own staff. Filtered, watered-down, wishy-washy responses do not work. One message for your board, another for the staff, and another for outside ears and Wall Street puts out a confusing message. In fact, you are left trying to explain over and over again, completely destroying the credibility you are trying to rebuild. Tripping over your own tongue is not what you want to be seen doing.

The media can break you fast. But it can also be a great tool. The Web can be used for offense as well as defense. Rumors can be dispelled and your positive actions can be announced quickly and accurately— not allowing for others to twist your words. Be active in the story you want put out. The more evasive you are, the more bad press will come your way. And, in the end you will be found out and pay an exponentially higher price.

When the media are banging on your door, don’t run. Engage them, answer fully to the best of the known facts, and start protecting yourself. And, if you see me banging on your door, a few cookies might just work!

VEN IF YOU WERE NOT LINING UP

Alan Oakes, Publisher ajoakes@aol.com

6

The Merchant Magazine June 2010

The

MERCHANT

Magazine

www.building-products.com

A publication of Cutler Publishing

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

Publisher Alan Oakes ajoakes@aol.com

Publisher Emeritus David Cutler

Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com

Contributing Editors Dwight Curran, Carla Waldemar, James Olsen, Jay Tompt

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How to Advertise

WEST, MIDWEST, SOUTHEAST Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com

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ONLINE Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com

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INDUSTRY Trends

Siding forecast

Fiber cement expects to overtake wood

R

Photo by James Hardie

ISING DEMAND FOR fiber cement should allow the material to overtake wood as the second-most popular type of siding in the U.S., behind only vinyl, according to a new forecast by the Freedonia Group.

The research company anticipates overall demand for siding will climb 6.5% annually through 2014 to 101.5 million squares worth $11.3 billion.

Advances will be driven by an expected rebound in housing completions from the depressed levels in 2009 that reflected the sharp declines in housing completions between 2007 and 2009. Although housing comple-

AFTER 25 YEARS of steady gains, fiber cement is poised to become the second most popular material for siding.

Building-Products.com

tions will remain below the level reached at their cyclical peak in 2006, the recovery will fuel above-average gains in the residential siding market through 2014.

Brick and fiber cement siding are forecast to see the most rapid demand advances through 2014. Demand for brick siding (rising 14.9% annually to the equivalent of 10.4 million squares by 2014) will be spurred by the rapid rise in housing completions in the South, the region of the U.S. where brick is most commonly used.

Homeowners continue to desire brick siding due to its aesthetic properties, durability and fire resistance.

Fiber cement siding demand, jumping 9.5% per year to 11.8 million squares by 2014, will be promoted by its durability and ability to be made into siding that resembles more expensive materials, such as wood or brick.

Advances will also be derived from the material’s popularity in the South and West regions of the U.S., which are forecast to see above-average growth in population and housing activity through 2014. However, the material’s market penetration will decelerate, as use of fiber cement in the Midwest and Northeast remains comparatively low.

Vinyl siding, which accounted for the largest share of the market in area terms in 2009, is projected to remain the market leader through 2014, increasing 6.3% to 40 million squares.

Demand will be supported by the material’s low cost, ease of installation, and durability. Efforts by manufacturers to broaden the range of available colors and textures will also promote gains. However, more rapid advances will be checked by rising competition from fiber cement and

stucco siding, which can offer enhanced long-term durability and fewer maintenance requirements.

Stucco, EIFS, concrete and other siding accounted for the secondlargest share of siding demand in 2009. Through 2014, annual demand for these materials is forecast to advance 9.3% to 10.6 million squares, as rising population growth and construction activity in the South and West regions—where stucco is most commonly used—drive gains.

Advances will also be derived from increased use of EIFS systems due to their ease of installation and insulation properties.

Wood siding is expected to lose market share through 2014 as consumers select materials that last longer and require less annual upkeep. Wood is predicted to inch up 2% per year to 10.4 million squares, dropping it to a tie for fourth most popular siding choice, from its current spot at second.

All other siding types combined will rise 3.2% annually to 18.3 million squares. Most significantly, polypropylene siding is expected to see above-average gains. Consumers will opt for the material due to its resemblance to natural wood siding while being far less susceptible to rotting and degradation.

The residential improvement and repair market was the largest market for siding in 2009, reflecting the low level of new housing activity in that year. Demand for siding in residential improvement and repair applications will rise modestly through 2014.

Homeowners will be less likely to take out home equity loans, the most common method of financing such projects as siding replacement, if financing is more difficult to obtain.

June 2010 The Merchant Magazine

9

INDUSTRY Trends LBM iPhone Apps

Get Appy

iPhone meets the LBM industry

P

well beyond mere communications, iPhones are fast becoming powerful tools to help LBM dealers and manufacturers work with, market to, and better serve their customers and prospects. Using specialized applications (or “apps”), iPhones can calculate job lists and lumber dimensions, hold digital product samples, and even locate and provide directions to the nearest home center—thanks to the $0.99 Home Improvement Store Finder app.

Bear Creek Lumber, Winthrop, ACKED WITH CAPABILITIES

Wa., equipped its entire sales force with iPhones, so reps can respond to customer inquiries more quickly and be constantly connected via email and the Internet. To encourage customers to work with them via iPhone, Bear Creek also developed two of its own apps: • LumberCalc ($0.99) permits board foot calculations, paneling coverage conversion to board feet (for patterns such as log cabin, tongueand-groove, shiplap), and flooring calculation.

• Board Feet Calculator (free)

MARVIN’S Window Shopping app allows homeowners to view what their own home would look like with new windows and doors.

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The Merchant Magazine June 2010

helps builders, architects and homeowners with calculating board footage and prices from known lumber dimensions. Enter the price per thousand board feet and they’ll get board foot price and linear foot price for that particular dimension. (Another company offers a similar app, with the same name, for $0.99.)

Rick’s Custom Fencing & Decking, Hillsboro, Or., devised The Rickʼs Fence Material Calculator (free), to help customers figure out the materials they’ll need for a particular fencing project. They input their preferred fence style, materials and length, and receive a comprehensive list of required materials. Then the list can be forwarded to their local Rick’s location for a quick quote.

Other apps provide digital “product samples,” before directing consumers to the nearest retail showroom to make their purchase. With Marvin Windows & Doors’ Window Shopping (free), homeowners snap a photo of an interior exterior space that could use an upgrade, then arrange new Marvin windows and doors over the photo.

“Once a homeowner creates and saves a design idea, a Marvin dealer can bring the design to life by helping personalize windows or doors with the desired hardware, wood choices, colors, energy-efficiency ratings, and so Building-Products.com

on,” said Marvin’s John Kirchner. “A dealer-locator tool is built into the app, which makes it easy to turn a homeowner’s design dream into a reality.”

Likewise, Lumber Liquidators’ Floor Finder (free) contains nearly 200 flooring samples. “Lumber Liquidators wanted to provide another way to make their products easily accessible to their customers,” said Marco Pescara.

“With the new app, the floor searching and buying process is very convenient and user friendly. By allowing users to access flooring samples right on their handheld screen, there is no need for bulky samples that end up being thrown away, making it also very eco-friendly.”

Using Sherwin-Williams’ Color-Snap or Benjamin Moore’s Color Capture (both free), iPhone users can snap a picture of any color inspiration and instantly match it to the closest hue among the manufacturers’ paint offerings.

Palettes Lite (free) and the upgraded Palettes ($9.99) can also be used to visualize color schemes for an entire home, inside and out.

Also for designers, I.D. Wood ($2.99) contains over 50 raw cut and unfinished wood samples with species, botanical and colloquial names, origins, descriptions, common uses, and properties for durability, sustainability and woodworking.

Associations are also getting into the act to promote their members’ products. Western Wood Products Association’s new Lumber DesignEasy Joist/Rafter Spans application ($0.99) allows architects, engineers, building code officials, and other design professionals to quickly calculate simple joist and rafter spans for western lumber structural grades.

Users select the size and loading conditions and generate a table of spans for the structural grades in six different western species groups. Adjustments can be made for load duration, deflection, and incising for pressure treated wood.

Comparing spans for different western species can be done with just a few touches. The app remembers the size and loading conditions selected, so users can choose a new species and then immediately create an updated table of spans.

Similarly, Northeastern Lumber Manufacturers Association recently included several of its top references and marketing tools in NeLMA To Go (free). The app includes “Standard Grading Rules for Northeastern Lumber,” “Standard Patterns for Eastern White Pine,” the white pine series of Architectural Monographs, and eastern white pine grade and end-use photos.

“Our goal is to continually look for unique ways to make it easy for potential customers to design, specify, and build with Northeastern softwood products,” noted NeLMA president Jeff Easterling.

Advanced construction-math calculators include BuildCalc Pro ($19.99) , Carpenterʼs Helper Pro ($9.99), Carpenterʼs Helper Lite (free).

BalusterPro ($2.99) calculates baluster spacing, while Builderʼs Formulator ($9.99) contains over 200 formulas from electrical, carpentry, plumbing, concrete and financial formulations.

FIS Dimensional Calculator ($9.99) calculates LBM dimensions in feet, inches, and fractions of an inch.

Applications are so versatile that some have replaced actual tools on contractors’ tool belts. A-Level, Dual Level, Quad Level ($0.99 each), and iHandy Level (free) turn an iPhone into a level. Quad Level, in fact, can be used horizontally, vertically or diaganolly—and reports exactly how far out of level something is. iRuler and Ruler ($0.99 each) convert an iPhone’s screen to tick marks, for precise measurements in inches or centimeters.

Flashlight and myLite (both free) change the iPhone’s screen to bright white, in effect allowing the phone to be used as a flashlight. iHandy Carpenter ($1.99) features a level, plumb bob, ruler, and protractor.

Apple’s iTunes App Store now offers more than 100,000 different apps for download to iPhones, iPod Touches, and iPads. And it’s only the beginning. Every day should bring something new.

iPhone in the Tool Belt

Once homeowners and contractors decide what products they want, another group of applications can help them figure out how many. Handy-Man Sidekick ($1.99) and Home Improvement Calculator ($4.99) calculate the amount of material needed for a range of projects, including paint, wallpaper, tile, decking, fencing, concrete, gravel, mulch, brick, and flooring.

Drywall Calculator ($0.99) calculates the square footage of any room to determine how many sheets of drywall will be needed.

ConcreteCalc Pro ($0.99) analyzes how many cubic yards of concrete are required for a project.

Building-Products.com

WWPA’S new app calculates and compares spans for six different western lumber species.

June 2010 The Merchant Magazine

11

FEATURE Story

By Elizabeth Baldwin, Compliance Specialists

Complying with the Lacey Act—or else

W

HAT DO MERANTI PLYWOOD,

ipé decking, sapelli lumber, bamboo flooring, and a guitar’s wenge fingerboard have in common? They are all covered by the Lacey Act, and distributors and dealers who trade in these products and others face civil and criminal penalties if they fail to comply with the Act’s requirements.

If you trade in wood products, regardless of their source or your own position in the market, you should know your responsibilities under the law. You must not only document your own direct imports, but also conduct “due diligence” on the imported products you are purchasing domestically. Even if you trade only in domestic species and production, you have obligations and liability under Lacey.

The Lacey Act consists of three basic provisions: (1) It is a United States federal offense to trade in illegal or “tainted” plants and plant-based products; and the action that made the product illegal (“tainted” the product) does not have to occurred within the U.S. Included in the long list of ways to “taint” a product are actions such as harvesting it illegally, trading it without proper duties or other fees being paid, or smuggling/stealing it.

(2) Importers need to declare both what species they are bringing in and where it came from.

(3) Don’t lie to the government!

(While this seems like common sense, the government has to specifically state that it’s wrong so they can prose-

What is Lacey?

NEW PROVISIONS of the Lacey Act just came into effect April 1, 2010, to ensure wood products didn’t originate in illegally logged forests. Everyone—from manufacturer through distributor and dealer to end-user—is responsible.

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The Merchant Magazine June 2010

cute you if you do it.)

The Lacey Act applies to everyone in the U.S., from the individuals and companies doing business in wood to the final retail consumer—the law does not exclude anyone. Violations of the new law will be met with steep penalties if the government is able to prove that an individual or a corporation has knowingly traded in illegal material or has misreported an imported product. Ten years of imprisonment is a possible penalty, and corporate fines can go as high as $500,000.

The Documentary Burden for Importers

The initial focus by most companies is on the documentary burden.

Lacey affects everything containing plant-based materials—even the wood burl veneer on a car’s dashboard must be documented. The total number of items affected is expected to exceed 90,000.

Every importer must file a detailed declaration for incoming agricultural products specifying species and country of origin no matter where the final product is produced. This includes material from Canada and Mexico— NAFTA doesn’t eliminate any Laceyrelated compliance requirements.

The international wood products trade often has a very complicated supply chain. An engineered floor might be made in China, but contain a meranti plywood core made in Malaysia and a top veneer of red oak originally from the U.S. The declaration requires that the importer know the source countries and exact scientific species for each component, including material originating from the U.S. While difficult enough for a company importing a single type of solid decking, this will be a significant chalBuilding-Products.com

Hardwood Decking Buyers, Beware

“What everyone fails to mention is the importance of being Lacey Act safe.

Everyone who buys ipé needs to be comfortable asking their suppliers about the legality of the fiber.

“With the market fluctuations and emerging imports from other countries, especially Indonesia and places other than Brazil with cheaper labor costs, it has become attractive to look to those places from a cost standpoint for alternatives.

What many don’t realize is that a good majority of this fiber will not pass the litmus test for Lacey compliance. A lot of importers do not have direct ties to the production and many don’t care. It’s the guy with the inventory at the end who gets the fine. We ensure that all our wood is Lacey safe because we want to and have to.”

– Sean Burch, Redwood Empire, Morgan Hill, Ca.

lenge to companies that import mixed species production, such as furniture or kitchen cabinet companies. Wood is traded under a commercial or trade name, but is rarely purely a single species of tree. A meranti plywood core might require a declaration of over 50 species (out of over 250 possible). The top veneer might come from several countries and include dozens of species within the one genus.

Developing a system to document and track the species is one of the challenges Lacey puts on companies.

In many cases, a freight forwarder or broker will file the declaration, but the company must provide the information for them. U.S. Customs is trying to accept information electronically, but is still receiving the majority of declarations on paper. They have developed a rolling implementation schedule, requiring declarations for different HS Codes to start on different dates. An updated listing of items subject to declaration (listed by HS code) is on the USDA Animal & Plant Health Inspection Service website at www.aphis.usda.gov/plant_health/ lacey_act/index.shtml.

The Legality Burden for absolutely Everyone

The potential for legal liability falls on everyone in the chain. On an absolute level, Lacey allows for the confiscation of goods from anyone— even to the point of allowing the government to enter a home to pull up a living room floor, rip out the kitchen Building-Products.com

cabinets, or seize Johnny’s new bunk bed. Now, in the real world, that’s just not going to happen, but that’s the potential extent of liability. Anyone in the chain, from the importer to the retailer to the homeowner, and even the trucking companies, technically share the risk for the legality of their wood in the product.

Most people define Lacey’s start date as when their specific import declarations are required. This focus can be dangerous since the legality requirement is already in effect—as of May 22, 2008, it is against U.S. law to

trade in any illegally harvested agricultural product. Every one of us is currently Lacey liable.

While the greatest burdens and risks will be on the actual importers, distributors and retailers should also be asking some questions of their suppliers, if only to be able to respond to their customers’ questions. In some markets, domestic producers are using Lacey as a scare tactic in their marketing to try to pull customers away from imported products.

It’s important to note that Lacey does not specifically require importers

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

June 2010 The Merchant Magazine

13

to document the legality of their material at time of entry and there is no specific burden of documentation or labeling for anyone further down the chain of custody. So, technically, there is no immediate legal obligation to compel a company to ensure the legality of their supply chain. However, forcing companies to trace a product’s chain of legality is most definitely the intent and the expectation of the government, and the government can prosecute based on a failure to do so if they determine that you’ve traded in “tainted” material.

Furthermore, ignorance will not be considered a sufficient defense. Even if a company or an individual had no idea that a product was tainted, they can still face fines or confiscation if the government believes that they should have reasonably known.

The good news is that the U.S. government bears the burden of proof.

For criminal charges, they must demonstrate beyond a reasonable doubt that you knowingly committed the crime or knowingly traded in tainted material. To assess civil penalties, they must show, again beyond a reasonable doubt, that you failed in your professional due diligence and truly should have known that a product was tainted.

The greatest challenge is that under Lacey, material can become tainted even if the law being broken is not an American one. The illegal action can occur at any point in the chain. From that point further, the wood is considered tainted, thereby becoming a violation of Lacey to import or sell it within the U.S. So, importers must ensure not only that their immediate purchase is legal but also attempt to trace the origin of the material back to it’s original point of harvest, confirming that each step along the way was made in accordance with local and international laws.

Many people assume that FSC certification protects them. It does not.

While being certified or carrying/ purchasing a certified product (be it by FSC, SFI, PEFC, MTCC or by any other internationally recognized program) does not specifically protect companies from prosecution under Lacey, it does help show that a company is doing its due diligence.

Although it will certainly be considered a sign of good faith, the U.S. government does not accept any third party verification regarding the legality (or illegality) of material.

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The Merchant Magazine June 2010

Finally, it should be noted that foreign companies and individuals can also be prosecuted under Lacey and in past cases (for fish and wildlife, not wood), foreign nationals have been arrested during a visit to the U.S. and subsequently tried and jailed.

Trade in U.S. woods is also covered by Lacey. For example, if the government can prove that a log was taken from the wrong side of a property line, that would be a Lacey violation and the U.S. company would be liable for any applicable penalties.

Furthermore, all American domestic woods need to be declared upon their re-entry into the U.S. If a foreign company utilizes American red oak or walnut for a floor, pecan for a kitchen cabinet, or SPF for plywood, those species will be subject to Lacey declaration requirements when the final product is imported into the U.S. So while much less likely to be targeted for investigation, a certain level of due diligence should be done regarding the American supply chain as well.

Many American manufacturers are anticipating an increase in their domestic market share as both downstream producers and retail customers shift from imported species to the “safer” domestic hardwoods. Certainly there is likely to be a change in that area, but U.S. companies should not neglect their opportunity to utilize the Lacey Act to increase their export opportunities as well.

U.S. companies should be offering their overseas customers who intend to export a finished product back to the U.S. documentation to show that their production has an extremely low risk of being considered tainted. Such documentation can include the FSC’s own assessment of American hardwoods as “low risk,” or copies of reports by the American Hardwood Export Council, Appalachian Hardwood Manufacturers, and other industry organizations.

Local universities often have studies (Purdue has an excellent one on Indiana timber) that can be quoted.

Companies with good documentation packages should become preferred suppliers to nervous overseas buyers.

Lacey & U.S. Woods

The Future of Lacey around the World

Lacey’s goal is to protect the world’s forests by encouraging more detailed questioning of supply chains and by providing a means of enforce-

ment against egregious offenders. So whether you choose to take action because it’s the right thing to do or because you are afraid of potential prosecution, you will be following the spirit of the law, perhaps even more so than the letter.

Finally, the international demand for legality documentation is here to stay, and it’s not just for the U.S. Japan began requiring some forms of legality statements more than five years ago, and the United Kingdom is debating the issue. The European Union is currently developing legislation similar to Lacey that will cover international trade with all of the countries in the Euro-zone. (It is rumored that this legislation may require the submission of legality documentation at the point of entry, which Lacey currently does not require).

So the work you do today may help you far beyond just complying with the Lacey Act. The documentary conditions created by Lacey may well become the default condition for the international trade of wood products.

– Elizabeth Baldwin is president of Compliance Specialists, Eugene, Or., and author of Complying with the Lacey Act: A Real World Guide. Reach her at (541) 4840983 or ebaldwin@baldwinresources.com.

For more on compliance…

A bit of due diligence on your part can reduce or mitigate potential penalties as well as significantly diminish your overall risk of being the target of an investigation.

Revised this spring, Complying with the Lacey Act: A Real World Guide provides practical instructions to help you organize and manage your species information and legality documentation, and coordinate your internal and external communications.

The printed guide—complete with sample databases and documentation— will assist you in preparing for the import declarations, learning how to document product legality, and educating yourself, staff, suppliers and customers regarding the potential impact of the Lacey Act. Also included is a CD-ROM containing assorted templates and documentation with recommendations for use with domestic customers and international partners, and a reference file linking to online resources. Sample purchase order text has also been provided in multiple languages common to many key supplying regions.

Visit www.laceyactresources.com.

PRODUCT Spotlight

Selecting the right moisture management system

M

OISTURE MANAGEMENT t

systems—such as water resistive barriers, housewraps, and rainscreen systems—can be a potent weapon against mold and mildew buildup behind exterior walls. Persuading customers to invest in such protection requires a thorough understanding of the performance characteristics of each product type—and the climate in which it will be used.

Increasingly, building professionals are viewing moisture management solutions not as “nice to have” extras, but as essential elements of exterior wall assemblies. These products are designed to protect against the potential effects of mold damage, especially in areas that experience heavy, winddriven rain, or high temperatures and humidity.

Even in drier climates, professionals looking to preserve the life of exterior cladding are turning to moisture management systems as added insurance against expensive call backs, remediation, and/or litigation.

Building professionals are often confused by the array of moisture management systems available and

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unsure as to when and where to use each solution. To compound the problem, the building industry uses terms like rainscreen and housewrap interchangeably, when in fact they play distinctly different roles. In addition, housewraps and building papers are available in dozens of varieties.

At present, there are few standardsbased methods to help professionals evaluate these products. The International Residential Code and International Building Code require a means of draining water that enters the assembly to the exterior but does not describe how to achieve drainage. In Canada, on the other hand, the National Building Code requires the use of “a drained and vented air space not less than 10mm deep behind the cladding over the full height of the wall” in areas that exceed a certain annual rainfall threshold.

A study commissioned by Benjamin Obdyke indicates that a building’s location and the choice of exterior cladding are central to the decision of which building envelope solution to use. Here is a basic primer for to select the right system for each job:

Water Resistive Barriers

Photos by Benjamin Obdycke Inc.

By Michael Coulton Benjamin Obdyke

Water resistive barriers are the part of an exterior wall system designed to prevent air and water from entering the stud wall cavity from the outside.

In effect, they perform like a shell for buildings: liquid water that has penetrated the exterior finish does not pass through, yet water vapor from the interior can escape so that the framing and wall cavity can dry, reducing the threat of mold and rot. There are three basic types: Building Papers and Felt: A paper sheet or felt material coated or impregnated with asphalt to increase its strength and water resistance; primarily used as a drainage barrier.

Housewraps: Engineered plastic sheet membranes wrapped around a house or other low-rise construction, designed to resist the movement of water in the liquid state while allowing the movement of water in the vapor state. Housewraps are not designed to channel the direction of water movement. While helpful when allowing moisture vapor from the inside of the structure to exit, it can also allow moisture vapor to be driven Building-Products.com

into the wall.

Enhanced Housewraps: Also engineered synthetic membranes, these products offer the features of housewraps or building papers but also include a drainage space to promote bulk water drainage through channels engineered into the sheet.

Rainscreens

The laws of physics state that moisture will always seek a drier plane.

Thus, even with a drainable housewrap, water may still seep through crevices in exterior cladding into interior assemblies, especially in regions prone to heavy rainfall, high temperatures, and high humidity—and sometimes even in climates that receive low or average rain. This, in turn, can lead to mold and mildew buildup.

When a more effective water management solution is called for, a rainscreen system should be considered.

This system works by creating a pressure-equalized air space immediately behind cladding, in conjunction with a water resistive barrier. The air space helps neutralize the forces that draw water into the assembly. Any water that does enter the wall is managed by allowing it to enter and exit through an opening at the bottom of the wall.

Rainscreens provide the additional benefit of providing ventilation drying of any residual moisture from the back side of the cladding.

There are two ways to construct a rainscreen system airspace. The first is nailing wood furring strips over wall studs after applying a building paper or housewrap. The second is using “void space” products that use a threedimensional plastic matrix to create a vented continuous rainscreen.

Building professionals can choose from a plastic matrix that can be applied directly over a water resistive barrier or bonded, one-step installation products that combine the plastic matrix with a water resistive barrier.

hilltop exposures receiving high (40” to 60” annually) or extreme (60” or more annually) rainfall, a rainscreen assembly is generally the best solution. It is also advised for areas that experience high winds in addition to rain, as wind-driven rain frequently manages to penetrate small openings in cladding.

In climates that experience moderate rainfall (20” to 40” annually), protection against rain penetration should include an enhanced housewrap. And in areas of low rainfall (less than 20” annually), a housewrap or building paper should offer sufficient water resistance.

Cladding Choice a Factor, Too

In selecting a moisture management solution, cladding choice must be considered. Some claddings are more moisture absorbent than others, and therefore could benefit from enhanced housewraps or rainscreen systems.

Wood Cladding: All woods are highly susceptible to moisture penetration and absorption, and require air space protection. The best option is a rainscreen system.

Stucco or Stone Masonry: The porous nature of stucco and stone absorbs water and therefore benefits from air space protection. Drainable housewrap may suffice in certain dry climates, but not all enhanced housewraps optimize drying. Over time, small cracks will appear in stucco,

requiring water drainage behind cladding. A rainscreen or enhanced housewrap is the best choice.

Fiber Cement: This material is less susceptible to moisture infiltration and absorption than wood, but it can trap water like stucco. A rainscreen system or enhanced housewrap will provide optimum protection.

Vinyl Siding: This product is nonabsorbent, does not trap water, and has a low potential for rot. Good-performing building paper or housewrap is recommended to optimize long-term performance.

Brick: The nature of brick construction practice creates sufficient moisture protection and air movement with 1” and 2” air space. However, clear drainage at weep areas must be maintained. Use a “knuckle” space and mortar deflection product.

As the state of building science continues to progress, more standards will be developed to assist building professionals in the decision-making process. But in the meantime, armed with the knowledge of the roles and performance characteristics of rainscreen systems and the distinct types of water resistive barriers, building professionals are in a better position to make the right choice.

– Michael Coulton is director of product development for Benjamin Obdyke, Horsham, Pa. (www.benjaminobdyke.com), and president of the Building Enclosure Moisture Management Institute.

Selecting the Right Product

Product performance, however, is only one variable in selecting the right moisture management system.

According to building experts, rainfall is the single most important factor to consider when designing for wall durability. The main rule of thumb in choosing such a product is to first determine the amount of rain control needed.

For extremely wet and/or humid climates, such as coastal areas and Building-Products.com

RAINSCREEN SYSTEM is constructed with “void space” products with a three-dimensional plastic matrix to create a continuous rainscreen.

June 2010 The Merchant Magazine

17

MANAGEMENT Tips Naming Your Website

Choosing a masterful domain name

I

business— whether for your company’s initial foray on the Internet or to expand into a new niche—a foremost consideration is your choice of domain name.

Few decisions have more impact on the success of convincing customers and prospects to visit your site.

Consultant Gemma Darcy offers five tips: N LAUNCHNG AN ONLINE

1. Short vs. Long

According to Darcy, the main consideration when choosing a domain name for your Internet business is how long or short it should be. The name needs to bear as much resemblance to your website as possible. Although you can register a domain name of up to about 65 characters, you need to remember that people need to be able to easily find you. Why make it hard for them?

Occasionally, a long domain name is better than a short one. For example, closeoutbuildingmaterialsforless.com will be easier to remember than cobmfl.com. Choosing the shortest, most easily recognizable name is always best, particularly if it matches the brand name you want for your online business.

2. Do’s & Don’ts

Select a name that is going to be easy to remember.

Avoid using hyphenated names like “how-to-install-windows-like-a-pro.”

It can often be difficult when advising somebody over the telephone of your website name, if they ask, “Is that a hyphen or a dash or a slash?”

However, if the non-hyphenated name is no longer available, you can still get near the name you want.

Avoid having the same letters next to each other, such as is in “mouldingSSpecialoffer.com.” People

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will often spell the name with one “s” instead of the two.

3. .Com or Not .Com

Often, your best option for a domain name is obvious—placing a .com at the end of your company name. Other times, you can come up with a snazzy, memorable name that describes what you do or sell (in the way that Superior Hardwoods & Millwork, Missoula, Mt., registered its online presence as www.reclaimedlumber.com). Yet, now 15+ years after the Internet has gone mainstream, well over 100 million domain names have been registered, meaning there’s a good chance that your ideal name has already been snatched up.

An easy solution is to use an alternate suffix, such as .net, .biz, or .us. If you do settle for a non-.com name, make sure you always advertise the full name of your site. Even then, a certain percentage of customers and prospects will inevitably end up at the .com site, so make sure it’s not a direct competitor.

Other companies tweak spelling or use abbreviations. Just make sure the alterations aren’t so random that they confuse potential visitors. A www.smithlmbercmpny.com would never become a highly trafficked site.

4. Register Now

“Domain names are being picked up quicker than candy on Halloween night,” Darcy notes. She advises that if you search and find a name that you really want, sign up for it straight away as it may not be available once you’ve gone to all the effort of actually building the site.

In fact, registering a domain is so inexpensive (most services charge less than $10), it may not be a bad idea to register multiple names, which can all

A QUICK SEARCH on www.whois.com will let you know if your domain name is still available.

direct potential customers to the same website. Georgia-Pacific’s www.gp. com, for example, can also be accessed via www.georgiapacific.com or www.georgia-pacific.com. Remember, if you don’t use it, your competitors might!

5. Don’t Overpay

Because securing a domain name is so affordable, countless marketablesounding Web addresses have been bought up by companies precisely to resell them to the highest bidder. So it’s possible to spend thousands of dollars for a name if such a company has beaten you to it. So don’t. Darcy advises shopping around for something an equally effective name.

“Your domain name is the center of creating your own website,” Darcy says. “It will represent you on the Web.” Building-Products.com

COMPETITIVE Intelligence

By Carla Waldemar

Love at first site

A

spend your honeymoon, Kevin? Visiting a lumberyard that was for sale.

True love. That was back in 1985 when Kevin Kilbourne, a young 20something, got the call. Growing up in Whalen, a tiny town in rural, upstate New York, he’d spent summer vacations working on roofing and siding crews and had gotten to know the yard’s owner.

“It was a good, old-time business—lots of room and a very loyal following,” Kevin recalls. “So I told him, ‘Whenever you’re ready to sell, give me a call, no matter where I am’”—honeymoon included. Be still, my heart.

Nothing tops falling in love with this crazy business. The owner of Whalen’s Rogers & Tenbrook had just died and his son, of retirement age himself, who wanted out, picked ND HOW DID YOU

UPSTATE NEW YORK dealer waited patiently for years to acquire a second site.

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The Merchant Magazine June 2010

up the phone. Kevin, with a degree in mechanical engineering and close to an MBA, was already on the executive-development track at Mobil Chemical when he got, um, distracted.

“Okay, I’ll be there tomorrow,” he said.

Upon meeting, the owner offered to hold onto the mortgage for the real estate if Kevin could come up with the cash to cover the inventory. So he turned his graduation assignment— assembling an imaginary, 50-page, minutely detailed business plan—into a real-life proposal to take to the bank. “Never saw anything like this before,” they gee-whizzed. “How much do you want?” The kid walked out with $275,000. And on April 1, 1985—no fooling—the business was his—all 400 sq. ft. of retail space, potbellied stove included.

By 1987, he’d expanded the place to 4,000 sq. ft., built up the SKUs, joined Do it Best, and business was doing fine, as predicted. Then he got another call.

A yard in nearby Danville was for sale—“a larger town, where it was doing a fair amount of business. It was an important market for us, so, although at 31 I was not too excited about the further debt, I bought it.

You’ve gotta expand,” he realized.

“And you’ve gotta protect your flank.”

Along with the store, he purchased a boom truck, because shingles represented an important product niche and sheetrock had become a strong natural outgrowth, along with landscaping blocks. “You’ve got to provide a little more service,” he figured.

By 1992, having tripled his employee base to 18, he added another 3,600 sq. ft. onto the 1990 renova-

tion and bought a couple more booms.

On a roll, by the mid-2000s, Kevin began thinking about building a store in Danville, where he’d been leasing the property—“not ideal. It was dirty and didn’t protect the products. Not a good situation,” he knew.

But just then Home Depot announced plans to move into town, so Kevin decided to wait and see.

Four years later, the Depot decree had come to nothing, so Kevin decided to make his move. He bought a derelict nursery—“a nice space in a good location”—and kept the sheds, but tore down the office to erect a new retail store, which opened in June 2009, in the pit of the worst recession he can remember—only to be followed by one walloping winter snowstorm after another.

But, as he explains, “The decision had been made earlier. Plus, one little advantage of being in a rural community is, you do many things, sell lots of different products—plumbing, roofing, insulation, drywall, lumber, hardware—so because we’d diversified, we had a pretty good selection to offer our customers and were not dependent on new-home construction—rather, maintenance of real estate, remodeling, and agricultural needs.”

“Sure, it’s more challenging today,” he’s honest to admit, “to keep additional product lines up to date and competitive. It’s more labor-intensive, but it also better serves the community. I tell people, ‘Northern New York State went into recession 20 years ago; you people are just catching up!”

(It was back then that Rochester, a 20mile workers’ commute away, lost Kodak and Xerox overnight.)

“Compared with metro areas, we Building-Products.com

don’t experience deep downturns. But this time around,” he adds, “it’s been pretty heavy on us.”

Kevin keeps his customer mix at 60% retail and 40% contractor business—“and even that is a blend, because people buy their lumber themselves and then call on a contractor to do the work. We do hold contractor events, and both yards have separate contractor salesmen who expedite, give quotes, and speak the language. Plus, those contractors like that we itemize each of their jobs separately, not just one big bill.

“We still do accounts manually, not with a POS,” Kevin declares. “I have to have a reason to spend money—such as, to improve service—and I’m just old enough that I don’t scream, ‘We’ve got to have technology!’ But we do use our computer system to enter Accounts Receivable and Payable. Now that the [POS] system capabilities have been improved, the prices have dropped and they do a lot more things than they did at first, like scanning, I’m probably ready,” he allows.

“But, physical projects first”—like the brand-new Danville store, filled with old-time eye candy like tonguein-groove wood ceiling and a high 16-ft. peak, plus a greatly expanded kitchen and bath showroom, which serves Whalen’s customers, too. “Also, now everything’s under cover in the yard, with drive-through facilities. We expanded most lines and added a housewares department; we’re still learning that. It’s still all evolving, but it’s built for future capacity. With more space, we’re adding what we hear customers want. For instance, for the first time, we had a Christmas section, and we learned a lot. One step at a time. We also added Sunday hours, after comments we’d heard from customers.

“We want to fill the needs of the area and keep business local, not send them to Lowe’s 20 miles away.” Plus, what this owner calls “other strong local, well-run, very similar independents” are raising the bar. Together, these dealers have joined a local co-op to increase buying clout. Yet, this winter has been particularly challenging because the season’s mainstay—drywall work—has dried up: no new houses. None of Rogers & Ten-brook’s 28 employees have been laid off, however, thanks to participation in a workshare program offered by New York State, which gives everyone four days at regular salary, then a fifth at reduced wage.

Launching the new store was distinctly the right move, Kevin is convinced—and, more important—so are his fellow townsmen. “It’s important to a small community to have small businesses, and once one is lost, there’s no capital to bring it back. And people are beginning to realize that if it’s lost, it’s gone forever, so they’re consciously deciding to spend locally. Indirectly,” he points out,” they’re helping themselves. When people come into the new Danville store and say, ‘Gee, thanks for investing in the community,’ it makes me remember why I enjoy this business. It’s very rewarding. You get a sense of accomplishment when, after 25 years here, they say, ‘We’re lucky to have you!’ It makes my day.”

Carla Waldemar cwaldemar@comcast.net Building-Products.com

June 2010 The Merchant Magazine

21

OLSEN On Sales

By James Olsen

Questions lead to sales

M

Customer: “I’m okay right now.”

great listeners. They are also great questioners. Let’s talk about some specific question/sales situations.

ASTER SELLERS ARE

The Introductory Call

Many of us talk too much on the introductory call. Too many sellers spend the time of first contact with customers talking about themselves and their company. We already know about ourselves and our company; what we don’t know about is our customer and their company.

Our introduction time with customers is short (three to five minutes).

If we spend this time talking about ourselves and our company, we will: • Bore the customer. Great products, great service, great value… they’ve heard it all before. Want to stand out? Ask questions!

• Force ourselves to re-prospect the customer. Because we talked the whole time, we found out nothing about the customer’s specific needs.

We must have specific details to sell.

• Lose the opportunity to meet with the customer again. Prospecting can be difficult, but not as difficult as getting a hold of a customer who we have bored to death on our first call.

What we say about ourselves in introductory calls should be brief and informative. Give just enough information to pique the customers’ interest and demonstrate that they are talking to the right person. But not more than that. After we make our introduction, we begin to interview (read qualify) the customer. We know we can help customers; what we don’t know is if this particular customer fits our needs.

Asking questions will: • Qualify the customer. One of our biggest time-wasters is working for customers who are too small or don’t fit our company profile. Sellers who are afraid or unprepared to ask questions waste time on non-customers.

• Give us confidence. It will give us a sense of power/control to interview the customer.

• Inspire confidence. Qualifying the customer instead of qualifying our-

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selves inspires confidence. Customers will feel they are meeting our criteria instead of the other way around.

No Free Questions

Questions from customers are buy signs. Whenever a customer asks us a question, we follow up with a question of our own. We are not information dispensers! After we answer, and sometimes before we answer, we ask a question in return.

Customer: “What’s your price on 2x10?”

Seller (Information Dispenser): “We’re $350 on 2x10.”

Customer: “Thanks.”

The dispenser then either leaves it there or offers a different product.

Try this: Customer: “What’s your price on 2x10?”

Seller: “We’ve got a great price on 2x10. How much do you need, and for when?”

The first example is dispensed information, the second leads to sales conversations (information exchange).

Leading with Questions

When someone tells me where to go, I bristle. When someone asks me where I want to go, I gladly tell them.

The same can be said of our customers. We know where we want to take our customers. Questions will get them to that place more easily than telling them to go there.

Seller: “I’ve got a great deal on 2x4; the market is racing, etc.…”

Instead consider: Seller: “What do you think of the market on 2x4?”

Buyer: “Not great.”

Seller: “How long will your current inventory last?”

Buyer: “About two weeks.” (It often takes a couple of questions to get our answer, so be prepared to ask more than once.)

Seller: “What kind of ship times are you hearing on 2x4?”

Buyer: “Two to three weeks.”

Seller: “If the ship times are out two weeks, don’t you think we’ll need to put some on to get it to you on time?”

Buyer: “I might look at one for two weeks out.”

Bringing customers to the “moment of close” with questions will help ease the friction of the sales process.

The Turn Around

The person asking the questions controls the conversation. Struggling salespeople answer, answer, and answer some more. Use the “turn around” to gain control.

Example #1: Customer: “What are the colors, sizes, ship times?”

Seller: “We have many colors.

Which do you prefer?”

Example #2: Customer: “What price do you have on 2x4?”

Seller: “We’ve got great prices. How many do you need?”

Questions are the light saber of the master seller.

Questions allow us to learn, lead and close.

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

Building-Products.com

GREEN Retailing

By Jay Tompt

Get up on green roofs

U

LTIMATELY, THE WAYS IN which homes are designed and built influence the kinds of products and solutions that make their way into the “shelter supply chain.” The green building movement has blossomed over the last ten years, and the thinking at its core has, too. References to “systems thinking” occur more frequently in conversations concerning all aspects of building science and practice.

Buckminster Fuller would be happy.

But it’s early days and there is much more progress to be made. The carbon footprint of the building industry is still two or three times above where it will need to be in order to meet whatever carbon reduction target eventually becomes national policy.

The next waves of innovation are pushing forward more holistic solutions, creating new opportunities for the long term. Savvy dealers and distributors could do well to begin making moves into green roofs and modular shelters.

A green roof is exactly what it sounds like—plants growing on the roof. The idea is old, but current approaches are based on the latest systems thinking. A good green roof system takes in the entire building ecology and watershed. Storm runoff is managed; perhaps rainwater is harvested and reused within the building. The plants effectively filter rainwater, provide habitat, and maybe even food for inhabitants. The building’s energy requirements for heating and cooling are reduced, as are heat island effects.

Organic wastes are composted, loops are closed. The overall CO2 footprint is reduced. A green roof provides many services for the building, its occupants, and its neighbors, what a permaculture practitioner would call “stacking functions.”

The number of green roof installations is growing and there could soon be tax credits to keep it growing. Savvy dealers would do well to start learning about green roofs,

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visit local projects, and scout products. New product innovations are coming to market that are contributing to better systems with greener materials, built faster with easier maintenance, etc. Consider the whole system and how you might innovate within your own organization to grow this aspect of your business next year. Learn more at Green Roofs for Healthy Cities (www.greenroofs.org), an industry association. Most importantly, build relationships with local green roof designers and builders.

The other wave of opportunity is with modular shelters, a perfect example of holistic design that contributes to sustainability and self-reliance. This may not seem obvious, but at bottom, we are really in the business of providing shelter. Rather, the shelter is the continuing service that customers are getting from their building system, the components of which are sourced from various places and assembled by various workers. Why not provide shelter more holistically?

There has been growing interest in green prefabs and modular building for use on homesteads, backyards, and even roofs. New designs incorporate the greenest materials, are solar powered, collect rainwater, and even come with a green roof. (For an example, see Tensen Eco Buildings at www.tensenbuildings.co.uk).

It’s not hard to see the appeal. These products are much less expensive and more feasible than buying a bigger house or financing a room addition. Building permits may not even be necessary. As more people seek to become self-sufficient, growing their food, and simplifying their lives, these cool little shelters are even becoming preferred ways to live.

A hundred years ago, this supply chain sold goods to people with sod roofs and even sold homes. Thinking of your own dealer or distribution business as a member of the “shelter supply chain” will help position it for the inevitable low-carbon future to come.

Jay Tompt Managing Partner Wm. Verde & Associates (415) 321-0848 info@williamverde.com Building-Products.com

DEALER Briefs

Oso Lumber, Arlington, Wa., has completed the sale of its six Puget Sound locations to ProBuild , Denver, Co.

Kent Cohee, owner of Shady Cove Hardware, Shady Cove, Or., applied to build Eagle Point Hardware & Rental, Eagle Point, Or. The 11,996-sq. ft. hardware store would include a rental and landscape product areas.

Ace Hardware, Missoula, Mt., will expand into the vacant 14,000-sq. ft. space next door.

Lowe’s has broken ground on new home centers in Sonora and Vallejo, Ca., both expected to open by the end of the year.

The chain also is seeking approval to add new locations in Poway, Petaluma and Fairfield, Ca. Home Depot has no more new store openings planned for 2010. Its only addition so far this year was April 29 in Bethesda, Md.

Washington Yard Cuts Back

Kingston Lumber Millwork & Supply, Kingston, Wa., has consolidated its retail store and lumberyard in a single location.

The retail space had occupied the same downtown location since the 1940s, but worsening traffic had made the trip between store and yard more difficult. “It gives us an opportunity to be more efficient with our customers,” said Tom Waggoner, who bought the business in 1968.

Waggoner said that the move had been planned for years, but a suitable building near the yard only recently became available. As for the nowvacant downtown building, several parties are interested in the space. “It will give the downtown part of Kingston a chance to grow,” he said.

Ganahl Returns to Pasadena

Ganahl Lumber paid close to $10 million for a closed Chevrolet dealership in Pasadena, Ca., and hopes to open its 10th lumberyard there next spring.

“We love Pasadena,” said president Peter Ganahl. “The San Gabriel Valley is an important place for the business to be, and Pasadena is the

LOOKS LIKE WEATHER

ideal spot.”

The new store will mark the company’s return to Pasadena after 100 years. Now based in Anaheim, Ca., the company opened in Los Angeles in 1884 and ran a yard in what is now downtown Pasadena from about 1900 to 1910.

Ganahl said he had to convince Pasadena officials that the new store would generate nearly as much sales tax as a car dealership. A successful dealership can generate substantial sales taxes, but many have gone out of business and finding new uses for old car lots has become a challenge.

“It’s almost a perfect square, with a huge amount of frontage on East Colorado, and it’s at a signalized corner across the street from a Target,” said broker Bill Ukropina, who represented the seller.

Former Boise Mill Restarts

Emerald Forest Products has opened on the site of Boise Cascade’s old mill in Emmett, Id. “This is a real sweet spot because the nearest mill is 120 miles away,” said Richard Vinson, who also owns a mill in Trout Creek, Mt. “Our goal and direction is to use the whole tree, from

stump to store, doing it right.”

The new mill will produce boards for Home Depot, as well as the Boise Cascade beam plant located next to the sawmill. Small wood pieces will be turned into bagged shavings for horse bedding. Logging debris will power the mill, and any excess will be sold to Idaho Power.

Vinson said that he and two other investors became interested in the mill in 2002, but he stopped work two years ago when their money ran out.

He said that $4 million in federal stimulus money allowed him to resume building last year.

“We need new jobs and highly skilled workers,” said Betty Munis, director of Idaho’s Forest Products Commission, who noted that this is the first new mill in the state since 2006.

“The forest industry has been a historical part of our state, and we need to look to the future.”

SPI Restarts Quincy Mill

Sierra Pacific Industries resumed production at its small-log sawmill in Quincy, Ca., in mid-May with a single shift. A second shift was added a week later. Production at an adjacent largelog mill was recently reduced to a sin-

gle shift.

“We are encouraged to get people back to work and sincerely appreciate all the support from Quincy and the surrounding Plumas County communities,” said spokesperson Mark Lathrop.

SPI ceased small-log production in Quincy in May 2009. At that time, the company said the closure was being considered permanent, but the plant’s equipment would be kept in place and operational in case conditions changed.

Stock Sells Commercial Unit

Stock Building Supply has sold its commercial door and hardware division to five-unit Cook & Boardman Group, Charlotte, N.C., to focus on the residential market.

The division, SBS Commercial Door & Hardware, has 13 locations, including Martin Architectural Products, Cary, N.C.; Hollow Metal Specialists, Sarasota, Fl.; Architectural Building Supply, Salt Lake City, Ut., and Idaho Falls, Id., and Precision Door & Hardware, Washington, D.C. Stock retained its fully integrated commercial door and hardware operations in New Mexico and California.

SUPPLIER Briefs

Forest Grove Lumber , McMinnville, Or., closed at the end of May after 53 years.

International Forest Products , Foxborough, Ma., has pur-

chased the wood products division based in Yuba City, Ca., from Sealaska Corp., Juneau, Ak., and hired its staff, including director of international trade & development Jim Haas, sales mgr. Buzz Nielsen, and sales & marketing coordinator Christina Haas.

Hampton Affiliates, Portland, Or., is looking for a buyer for its shuttered 120-acre milling site in Packwood, Wa. The property is valued at roughly $3 million.

Peninsula Plywood , Port Angeles, Wa., was back in operation within days with a portable boiler after a May 15 fire destroyed its boiler control room. Damage was estimated at $500,000.

DEALER Briefs

Samson True Value Hardware , Fairbanks, Ak., held a grand

reopening to show off its new location.

The 104-year-old business was closed for nearly a year before co-owners Jeanne Stearns and Jennifer Towler found a new storefront to house a similar product mix, enlarged lawn and garden section, and some of the old store’s antique furnishings.

Miner’s Ace Hardware

opened store #7 in the former Pacific Home Improvement Center in San Luis Obispo, Ca.

Ace Hardware Corp. , Oak Brook, Il., launched its Helpful Hands campaign, a nationwide contest that will award a $2,000 paint makeover to one high school in each of the 50 states.

Anniversaries: Parr Lumber , Hillsboro, Or., 80th … Honsador Lumber, Kapolei, Hi., 75th … Parson Lumber & Hardware, Boyes Hot Springs, Ca., 60th … McGuckin Hardware, Boulder, Co., 55th.

HD Supply Adding in L.A.

HD Supply Repair & Remodel, Sacramento, Ca., is opening a new warehouse store with indoor drivethru lumberyard in San Fernando, Ca. Previously known as Contractors’ Warehouse, the HD Supply division operates 11 locations throughout California.

Roseburg Partners With EPA

Roseburg, Roseburg, Or., has been accepted as a shipper/transport partner in the Environmental Protection Agency’s SmartWay Transport Partnership, which seeks to increase energy efficiency and reduce carbon footprints.

“Our participation demonstrates our commitment to better management of our resources and reducing our impact on the environment,” said c.e.o. Chuck Ulik, “Our decision to participate in SmartWay is simply good business for us, our suppliers, and our customers.”

Participants are required to evaluate their environmental impact and carbon footprint, which is affected by whether a shipper uses SmartWay certified carriers, the extent of rail and intermodal usage, and equipment prac-

tices within the shipper’s own facilities. Roseburg’s score was well above the requirement to become a Smartway partner.

“Roseburg has achieved huge milestones in reducing its carbon footprint,” said Jeff Brandt, the company’s director of transportation. “We plan to continue our efforts to further reduce carbon emissions.”

L.A. Area Independent Closes

Merkow Hardware & Paint, the last small hardware store in Pacoima, Ca., is holding a going-out-of-business sale and will close by the end of June—due to market conditions and competition from a nearby Lowe’s.

“I feel sad because I worked at this to make a living to support my family,” said owner Kwang Lew, a 62year-old native of South Korea who bought the hardware business and the building from the Merkow family in 1987. “It was a stable business and we could live off it, but we didn’t make a lot of money.”

Lew already has a tenant for the building, an entrepreneur who plans to open a phone and clothing store. As for Lew, “I’m going to try to find a part-time job,” he said.

WEATHER OR NOT,

REVOLUTIONIZES FLOORING.

Portland Area Retailer Hangs It Up

Decorum Hardware, which operated for 30 years in the Old Port area of Portland, Or., closed May 22.

“We’re seeing things turn around, but it’s not enough,” said owner Nick Harding, who blamed the recession, Internet shopping, and limited parking for the store’s demise. “It all kind of took its toll on us. Besides, I need a break.”

One portion of the business, Nostalgia Lighting, will continue if Harding can find a suitable site in the Portland area with low rent and plenty of parking. “Eighty to 90% of our business is special order,” he said. “We don’t need to be in the Old Port.”

He also hopes to reopen Decorum at another location in a few months, possibly with a smaller showroom but with more off-street parking.

Marvin Expands to Siding

Marvin Windows & Doors, Warroad, Mn., is expanding into exterior siding, incorporating the same material it uses in its fiberglass windows.

Marvin will produce the new Apex Siding System at its Tecton Products subsidiary in Fargo, N.D., which Marvin co-founded in 1990 to supply fiberglass components to its window plants in Fargo and Roanoke, Va. Hanson Building Products, Ramsey, Mn., was selected as the first Apex distributor and will market the product to area builders, remodelers, and architects.

The siding will be marketed as an alternative to wood or vinyl siding, reportedly with a finish four times thicker than paint and offering resistance to rot, mold, fading and warping.

SUPPLIER Briefs

Roseburg, Roseburg, Or., received exempt status by the California Air Resources board for its hardwood plywood panels, because they are bonded by an ultra-low-emitting formaldehyde (ULEF) resin.

J.H. Baxter & Co., San Mateo, Ca., is now offering TimberWood architecturally designed lighting poles built from “100% pure” FSC-certified wood.

Canfor Corp., Vancouver, B.C., restarted its sawmill in Quesnel, B.C., which will produce softwood lumber for China.

Nu-Ray Metal Products, Auburn, Wa., has is adding a 15,000-sq. ft. metal roofing/siding plant with showroom in Airway Heights, Wa.

Calvert Co. Inc., Vancouver, Wa., has been producing and distributing EcoBlu 3000F glulam beams treated with BluWood moisture repellant and FRC fire retardant coatings from EcoBlu Products Inc., Vista, Ca.

BlueLinx Corp. is exclusive distributor of AERT-manufactured ChoiceDek decking and accessories to Lowe’s stores throughout North America.

KOMA Trim Products, Huntsville, Al., now protects all its PVC products with Klean Edge, which smoothes and seals edges so they remain cleaner during storage, handling, and after installation.

Get ready for a whole new approach to dealing with edge swell: pointSIX™ from Ainsworth, an engineered subfloor solution designed to accommodate whatever wet stuff the weather serves up. It does so thanks to a patented tapered-edge technology that actually offsets the effects of prolonged moisture exposure.

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PointSIX takes its name from research results indicating a minimum .6mm taper depth to be most effective in reducing edge swell.

Withers Brings Yard Back to Molalla

Withers Lumber added its fourth location May 10, in Molalla, Or. “Our formula is the exact opposite of everyone else,” said Trent Withers, who runs the 82-year-old chain with his father, Bob. “Everyone else plops down a 10-acre yard and fans people out 50 miles. Our idea is to put small yards into small communities with local people and become part of the town. We are never going to be a big, mega-operation. My grandfather didn’t want that, my father didn’t want that, and I don’t want that.”

The new location is managed by Ryan Brock, who managed the local Keith Brown Building Materials until it closed in 2008. Soon after, Brock contacted Withers.

“He called and said Molalla had always supported a lumberyard, and he told me, ‘If you open one here, we can do well,” Trent recalled. Similarly, years earlier, Brock’s father, Ken, called Withers with the same pitch for Silverton, Or. Soon after, Withers opened a yard there and hired Ken as manager.

Withers also has yards in Brooks and Woodburn, Or.

Colorado Sawmill Shuts Down

Intermountain Resources LLC, Montrose, Co., ceased operations in late May due to lack of capital after falling into receivership—six months after receiving $500,000 in federal stimulus money.

According to spokesperson Nancy Fishering, the company is “recapitalizing and restructuring,” but has no intention of closing permanently.

Sandy Head, executive director of the Montrose Economic Development Corp., said that the $500,000 allo-

cation was a “Band-Aid.” She believes the company should receive more assistance to keep workers employed and help harvest more than a half-million acres of beetleinfested trees.

“What they need is money,” she said, “and we all know there is a shortage of that.”

Last year, Intermountain bought equipment from other sawmills and invested in new technology that increased its capacity to 42 million bd. ft. from 12 million bd. ft.

Car Plows Into Ace Storefront

Even a car crashing through the front of the store could not stop business at Cook’s Ace Hardware, Sacramento, Ca. The morning of May 25, a car ran over a tree out front and through the store’s glass front. Owner Cindy Duarte said she has feared such an accident since the street parking in front of the store was changed.

No one in the store was hurt, although the condition of the driver and the cause of the accident are not known.

Home Depot Killer Awaits Fate

Jason Russell Richardson, 39, who killed manager Tom Egan, 40, during a 2007 robbery of a Home Depot in Tustin, Ca., has been convicted of first-degree murder.

However, the jury was dismissed when it could not reach a unanimous decision on whether the killer deserves the death penalty.

“They voted their conscience—they did what they were supposed to do,” said deputy district attorney Cameron Talley, who will continue to push for the death penalty because nine of the 12 jurors favored capital punishment

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for Richardson.

“He’s been earning this more severe punishment for 20 years,” Talley said during closing arguments in the trial.

“He went in (to Home Depot) ready to kill.”

Richardson—who wore a full-body painter’s coveralls, sunglasses, dust mask, and gloves to disguise himself in the robbery—was caught because he left behind a sock that was used for DNA identification. He got away with approximately $500.

Egan left behind a wife and twin 3-1/2-year-old daughters. A June 18 hearing will discuss when to schedule another penalty-phase trial for Richardson.

Timber Plantation in Nevada Desert

ECO2 Forests, which started in Australia last year and is now headquartered in Sacramento, Ca., has established its first tree plantation in the U.S. Some 450,000 paulownia trees were planted on 2,000 acres in the high desert between Reno and Susanville, Nv. Over the next five to seven years, the company intends to plant up to 3 million of these trees on 14,000 acres in Washoe County, Nv., and in parts of California.

“From the time we plant the tree into the ground, in 90 days it’s over 6 ft. tall and has leaves the size of an elephant’s ear,” said c.e.o. Collie Christensen. “Within the first year, it will grow over 20 ft. tall.”

The company hopes to generate revenue by selling both carbon credits and timber. Christensen said the company will be able to sell carbon credits—for about $20 each on the open market—within six months of planting. The first timber sales would take place in four years, when the trees are thinned to decrease competition for sunlight and soil.

SUPPLIER Briefs

Action Wood Products, Turner, Or., suffered a latenight May 27 fire. The cause is under investigation, and the owner vows to get the mill back in operation.

Arch Wood Protection’s Wolmanized Outdoor wood has been listed as a Green Approved product by the NAHB Research Center.

Osmose’s Advance Guard and Hi-Bor borate preservatives have been awarded GreenGuard Children & Schools Certification from the GreenGuard Environmental Institute. iLevel’s Shear Brace reportedly is the first pre-fabricated shear panel to receive ICC-ES 2009 IBC/IRC code compliance verification.

Ply Gem has had its Kroy rail products Green Approved by the NAHB Research Center.

National Gypsum introduced Green Product Score, an online resource to create customized sustainable materials data sheets for use with green building rating systems.

Auto-Stak, Westwood, N.J., has redesigned its website at www. autostak.com.

BW Creative Wood has expanded its railing website at

www.stairsimple.com.

The Hardwood Council has redesigned its website at

www.hardwoodcouncil.com.

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MOVERS & Shakers Jim Alexander, Precision Lumber Co., The Dalles, Or., has retired after 34 years in the industry. Dan Callan succeeds him as sales mgr.

Matt Beswick, ex-Poulin Lumber, has joined Huttig Building Products, Phoenix, Az., in outside sales, covering northern and western Arizona.

Brian Johnson, ex-Idaho Timber, has joined the lumber sales team at Clearwater Paper Corp., Lewiston, Id. Allen Gaylord, ex-Potlatch, is now responsible for cedar products sales. Paula Hasfurther, exPotlatch, is new to the customer service staff.

Dave Messenger, ex-Ochoco International, has joined the sales staff at Buckeye Pacific, Portland, Or. Marc Mizorski has been named chief financial officer of Hayward Lumber Co., Monterey, Ca. Hayward’s Raul Rodriquez was named Associate of the Year by The Home Builders Association of San Luis Obispo and Santa Barbara Counties, Ca.

Dave Jory will stay on as general mgr. of Peninsula Truss, Bremerton, Wa., after he and partner Parker Lumber sold the business to Kingston Lumber Millwork & Supply, Kingston, Wa. Peninsula’s Tim Lundberg and Curtis Perrault have also joined Kingston, in outside sales.

Jim Scharnhorst, v.p.-market development, Idaho Forest Group, Coeur d’Alene, Id., will retire June 30, after 36 years in the industry.

Gary McKinnon has been promoted to mgr. of Parsons Lumber & Hardware, Boyes Hot Springs, Ca. Scott Hamilton, ex-American International Forest Products, is new to sales at Talon Forest Group, Portland, Or. Yvette Wendt has been promoted to assistant showroom mgr. at Healdsburg Lumber Co.’s Hudson Street Design, Healdsburg, Ca. Dalena Larson has been named director of sales & marketing for RAMCO (Recycled Aggregate Materials Co.), Simi Valley, Ca.

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www.reellumber.com 32

The Merchant Magazine June 2010

Tom Reynolds is now in sales at Bridgewell Resources’ industrial division in Portland, Or. Myrna Hower, ex-Timberline Forest Products, now handles logistics at the Portland, Or., office of Silvaris Corp., Bellevue, Wa. Sharon Koller, ex-Allied Plywood & Lumber, now handles logistics at the Port Arthur, Tx., office.

Peter Gordon, ex-Fraser Papers, has joined the board of Ainsworth Lumber Co., Vancouver, B.C., as chairman, succeeding Jay Gurandiano, who has resigned.

Pierre McNeil has replaced Jonathan Mishkin on the board.

Paul Harder, ex-Taiga Building Products, is now with Dakeryn Industries, N. Vancouver, B.C. Art Steinhafel, ex-Atrium Windows, has joined Ply Gem Windows, Roanoke, Va., as senior v.p.-sales, overseeing the group’s new combined national sales organization.

Rich Gutermuth, ex-Spruce Computer, has formed LBM Employer Services (www.lbmpayroll.com), offering Web-based payroll and HR services to dealers.

Phillip Kleiss is now millwork sales mgr. at Arauco USA, Atlanta, Ga.

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t Reel Lumber Service, we supply domestic and foreign hardwoods.

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Robert “Bob” Ritchie, ex-Johns Manville, was appointed senior v.p. and chief technology officer at Masonite. He takes over global R&D leadership for Henry Coghlan, now v.p.-special projects.

Shane Short, ex-James Hardie Building Products, has been named general mgr. of Royal Mouldings.

Janet M. Saura was appointed senior v.p. and deputy general counsel at Lowe’s Cos., Mooresville, N.C. Jeff Gooding has been named director of consumer marketing for Ace Hardware Corp., Oak Brook, Il. Bob Moschorak has joined the coop as president and general mgr. of Ace International.

Mark Rossolo has resigned as Green Building Initiative v.p.-operations to serve as director of public affairs for the Greenguard Environmental Institute.

Dan Bohannon and Dave Bohannon, Bohannon Lumber Co., Orange, Ca., have been ranked #1 for doubles in the 60-year-olds division by the U.S. Tennis Association.

Corey Ander is spicing up the employee cafeteria at MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

New Program Tracks Hawaiian Hardwoods

A new tree-tracking system will allow investors to track the growth of hardwood seedlings planted on a 2,700-acre site on the Hamakua Coast in Hawaii.

“This high-tech program will give a level of comfort to forestry investors that has never been available before now,” said Jeff Dunster, c.e.o. of Hawaiian Legacy Hardwoods. “We fully expect the rest of the industry to follow suit within the next 10 years.”

HLH hopes to grow 1.3 million rare tropical hardwood trees, primarily koa, which are indigenous to Hawaii. The planting site was the personal property of King Kamehameha I and once supported a koa forest, which was nearly destroyed by clearcut harvesting and cattle grazing.

“We are reduc-

ing global warming through carbon sequestration, while providing our investors the opportunity for substantial profits,” said Dunster.

Each tree in the sustainable forestry project will receive a computer signature that will allow tracking of ownership, growth, maintenance, lumber-yield, and pedigree. Once the program is fully implemented, investors will be able to use programs such as Google Earth to pinpoint their own trees.

“Seeing the rows-upon-rows of growing koa seedlings is incredibly rewarding,” said c.o.o. Darrell Fox. “I’ve been handson with this project every step of the way—from seed collection to final planting—and it’s really gratifying to see all of the hard work and planning come to fruition.”

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Building-Products.com

June 2010 The Merchant Magazine

33

Sawmills restart as profitability jumps

P

ROSPECTS FOR SAWMILL profitability have increased significantly in 2010, leading curtailed and closed sawmills to reopen, according to Forest2Market, which provides pricing and benchmarking services for the South and Pacific Northwest.

For example, according to its lumber price database, Mill2Market, southern yellow pine prices have risen 25% from an average of $247 per thousand bd. ft. (MBF) in 4th quarter 2009 to $308/MBF in 1st quarter 2010. The price that mills receive for their residuals—the sawdust and shavings created as a by-product of the lumber milling process—also increased, by 3% quarter over quarter.

“While we’ve seen a 28% increase in revenue at the mill, input prices have been rising much more slowly,” said Forest2Market’s Daniel Stuber.

Sawtimber prices, which make up approximately 75% of a mill’s operating costs, have increased nearly $2 per ton from 4th quarter 2009 to 1st quarter 2010. Though this is an increase of just 5%, the total impact on a mill is higher— representing an increase of roughly 7.5%—because sawtimber costs are such a high percentage of overall costs.

“When you compare a total increase in revenue of 28% next to an increase of 7.5% in raw material costs, the posi-

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The Merchant Magazine June 2010

tion of sawmills in the market looks significantly better than it did last quarter,” said Stuber. “Assuming manufacturing costs remain the same (and increased production generally leads to a decrease in per unit costs), profitability has improved by more than 20% this quarter. And while this increase sounds considerable, we have to remember that mills were pretty much running at breakeven levels (or at slight losses) in the 4th quarter of 2009.”

Building-Products.com

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June 2010 The Merchant Magazine

35

H

Patience pays off for 4th generation business

& Home Center, Malad City, Id., has lots to celebrate: 75 years of business and the grand opening of a new, larger location.

“The biggest thing is seeing lots of new faces,” said Doug Crowther, who owns the store with his parents, Jared and Ronda Crowther, and his wife, Stephanie. “After we opened April 5, business went up 17% in just one month.”

ESS LUMBER

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The Merchant Magazine June 2010

Although Malad City has just 5,000 residents, the store draws from the surrounding area—and the nearest competitor is 45 miles away.

“We have looked forward to this for a long time,” said Jared, who has managed the store since 1980. “Grandpa Jody Hess started out in 1935 with approximately 700 sq. ft. of retail space. Floor space more than doubled when they

Building-Products.com

moved the store downtown to its present location. Our new building has 9,000 sq. ft., with 7,000 sq. ft. for the retail end of the business.”

The latest chapter in the family business began in 1992, when Jared and Ronda bought out other family members and brought Doug into the business. They joined Do it Best the next year, and in 1999, Jared requested that a DIB architect/designer draw plans for a larger building.

And that’s where it stopped—for about seven years. The Crowthers had mixed emotions about moving ahead with the project. In the meantime, the old yard needed remodeling, so they decided to invest what they could, on their own. They built two new covered lumber storage areas and a new perimeter fence, removed an old storage barn, and purchased nearby land for the expansion.

The Crowthers poured the foundation for the new building in the fall of 2007, but actual construction didn’t begin

PREVIOUS STORE dated to 1968, when the business moved to its present location downtown.

Building-Products.com

OWNERS are Jared and Ronda Crowthers and their son, Doug.

for another two years. By the spring of 2009, however, financing had been arranged through U.S. Bank and the Eastern Idaho Development Corp.—and the family’s dream was finally becoming reality.

Doug said that customers are pleased with the many improvements and additions: wider aisles, more than 10,000 SKUs, an expanded paint department, and 800 sq. ft. of kitchen and bath products. Outside, customers can park in a new lot, instead of on the street.

“The new store was designed to appeal to women,” said Doug. “They just put the kids in the new shopping carts and browse the wide aisles.”

Inside, Ronda has decorated one wall of the store with family photos. “It’s one way we can remember our past and honor their good name,” she said. “I’m very excited that we are a four-generation-owned store.”

June 2010 The Merchant Magazine

37

FAMILY Business

By Amy Schuman

Family vs. business

considerations in compensation

O

challenging policy areas for families in business together is compensation. As with many issues, approaches tend to be divided into two camps. Opinions and emotions can run quite high on both sides.

The “Market Camp” says that a market-based approach to compensation is the only acceptable and professional alternative. Family members should be paid what anyone else in their positions would be paid, and perquisites for family members are to be avoided. According to this view, any other practice is uncompetitive, is unsustainable, and jeopardizes the success of the business.

The “Family Camp” insists that special considerations in family compensation are legitimate and appropriate. The family may decide to pay family members approximately the same salaries no matter what their NE OF THE MOST

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The Merchant Magazine June 2010

positions, in order to preserve family harmony.

Alternatively, family members may be paid a premium wage or receive special perquisites such as paid memberships to a country club, extra vacation time, or the use of company cars or other resources.

Special rewards recognize the extra burden of ownership borne by family members, who often put in many

extra hours of work during evening and weekend events.

Wise and experienced families find it impossible to embrace one of these two approaches to the exclusion of the other. They seek to operate in a way that balances the wisdom found in both approaches.

For example, market-based compensation approaches contribute to stronger, less confused family relationships. At the same time, monetary recognition and reward for the long hours invested by family members in support of their business can foster their support for a data-based compensation philosophy in the business.

Let’s provide a hypothetical but realistic example: Joseph Construction Company is entering its third generation of family ownership and management. Several years ago, when the siblings entered the business, it embraced a market-based compensa-

Building-Products.com

tion approach. The human resources staff regularly adjusts family and nonfamily compensation based on regional and national salary surveys.

Performance appraisals are conducted regularly and form the basis of salary decisions at all levels.

The family sees this professional approach to compensation as a cornerstone of the company’s continued growth and success, as well as its ability to attract and retain top nonfamily talent.

However, over the years, the siblings have come to see the value of incorporating several family-based elements into their total compensation approach. For example, performance reviews are standard practice throughout the company and provide an objective basis for salary increases at all levels. However, family salary increases are not tied to annual performance reviews, because the siblings have never really received performance appraisals.

Also, family member pay is slightly above market rates for their jobs.

This is in recognition of the extra time and effort put forth by family members. They are all active in the community and spend many evenings and weekends representing the family and business at charitable events.

They have also taken on the role of organizing family meetings and preparing the next generation for their responsibilities, much of which takes place outside usual business hours.

These activities are critical in creating conditions for sustainable success.

Family and non-family executives know about this “family pay premium” and recognize its value.

Although the company has a vacation and time-off policy that is strictly enforced for non-family employees, the siblings’ vacations and time off are not monitored or tracked. While none of the siblings abuse this privilege, none of them limit themselves to the company standard of two weeks of vacation per year. In fact, when their children are young, family members frequently leave work in order to attend their children’s events and tend to their needs—a privilege that is not extended to non-family employees.

Finally, all four siblings attend an annual family business seminar (often in exotic, luxury locations) paid for by the business, and this time off is not counted as part of their vacation time.

However, all these family-based Building-Products.com

compensation elements take place alongside a professional, rigorous, market-based salary and bonus system throughout the company. This hypothetical family illustrates a realistic and positive approach to considering both family and market-based considerations in total compensation of family members.

Every successful family business finds its own unique compensation approach. As you seek to establish your approach, be aware of the importance of balancing these two important forces. Which approach do you

TRIM

FASCIA

prefer?

Are you emphasizing one approach to the exclusion of the other?

If so, perhaps this article has offered you some ideas that can help you strike the most productive balance for your unique situation.

– Amy M. Schuman is a principal of the Family Business Consulting Group, Marietta, Ga.; (800) 551-0633. Reach her at schuman@efamilybusiness.com.

Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.

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1. 866. F S C . W O O D June 2010 The Merchant Magazine

39

MANAGEMENT Tips

By Anne Peterson, Federated Insurance Companies

“DWD” and “DWT”–

Your business can’t afford them

H

acronyms being used to describe our driving—“DWD” and “DWT”?

Someday the terms “driving while distracted” and “driving while texting” may become as socially unacceptable as “DWI” (driving while intoxicated) and “DUI” (driving under the influence). The reason—a distracted driver is as dangerous on the road as a driver with a blood alcohol level of .08—and a texting driver is even more dangerous!

Have any of these scenarios ever happened to you or to one of your company’s employees?

• Has a passenger in your vehicle reacted to something you did—or did not do—while you were behind the wheel?

AVE YOU HEARD THE LATEST

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The Merchant Magazine June 2010

• Have you slammed on your brakes because you did not see the car in front of you stop?

• Have you ever missed an exit you intended to take?

• Have you ever had no recollection of driving from one place to another?

• Have you unintentionally run a stop sign?

If the answer is “yes,” you’re not alone. You were likely driving while distracted. Federated Mutual Insurance Co. data for the past three years (2007-2009) shows distracted driving is a contributing factor in more than half of driving losses reported by our clients.

Text messaging has exploded! Statistics show it doubled from December 2007 (48 billion text messages sent) to December 2008 (110 billion text messages sent).

The National Highway Traffic Safety Administration and the Virginia Tech Transportation Institute have reported that nearly 80% of crashes and 65% of near-crashes involved some form of driver inattention within three seconds before the crash. With statistics like these, it’s not surprising that the federal and state governments are taking a closer look at this issue.

Regulatory Front

On January 13, 2009, the National Safety Council issued a press release that called on motorists to stop using cell phones and messaging devices while driving. The release urged businesses to adopt policies prohibiting cell phone use and called on governors and legislators in all 50 states and the District of Columbia to pass laws banning the

Building-Products.com

behavior.

From Sept. 30 to Oct. 1, 2009, U.S. Department of Transportation Secretary Ray LaHood held a Distracted Driving Summit in Washington, DC. The DOT has a website dedicated to information on distracted driving at www.distraction.gov.

On Oct. 1, 2009, the Obama Administration announced an executive order banning all federal workers from texting while driving on government business, driving government vehicles, or using government equipment. Later in October, the Chairman of the Governors’ Highway Safety Association testified at a hearing before the House Transportation and Infrastructure Committee supporting a texting ban for all drivers.

AAA also announced last fall that it will push to pass laws banning driver text messaging in all 50 states by 2013. According to the AAA Foundation, a ban implemented by the State of California a year ago has reduced on-the-road text messages by 70%.

To say that the year 2009 was an active one at the federal and state levels in regard to distracted driving would be an understatement. In 2008, 23 states considered some form of leg-

Building-Products.com

islation to restrict the use of cell phones or wireless devices. In 2009, more than 200 distracted driving bills were considered in 43 states! To see an up-to-date listing of current state cell phone and text messaging laws, go to www.iihs.org.

What Can I Do?

When you think about it, your vehicle is fast becoming the ultimate mobile device. Perhaps you equip it with a smartphone—a mobile phone that doubles as a computer and allows you to plug in anywhere. Smartphones are setting a new standard for information access and exchange. There are 250 million cell phone subscribers in the U.S.—most of whom operate vehicles on our nation’s roadways.

You realize your employees are crucial to the success of your business.

Educate your staff about the dangers of “DWD” and “DWT”—the two newest acronyms your company needs to avoid.

– Anne Peterson is senior marketing communications specialist for Federated Insurance Companies, Owatonna, Mn. (www.federatedinsurance.com). She can be reached at sapeterson@fedins.com or (507) 455-5340.

June 2010 The Merchant Magazine

41

Real Outdoor Living A bird’s-eye view of a successful wood marketing program W Wood Partnerships Increase Strength of Outreach

It started with wood education videos and continued into trade show media events: the successful partnership between SLMA’s Real Outdoor Living Program, the Western Red Cedar Lumber Association marketing program, and Mendocino Forest Products, Windsor, Ca., has made great strides in educating key audiences about the benefits of choosing wood over alternative products.

“We’re stronger together than we are apart,” says Debbie Burns, president of SLMA. “SLMA continues to represent the interests of southern pine producers in the Southeast—this remains our primary goal. With the increased attention brought to the product via the Real Outdoor Living program, we realized that the three main decking species in the U.S.— pressure treated wood, cedar and redwood—all have the same end goal: to sell more wood for decking.”

Representatives from the three species first met by phone in late-summer 2009. Continued communication led to the development of shared key messages, as seen throughout both sets of wood education videos produced by the group.

An educational media event held at the 2010 International Builders’ Show built on their success, carrying key wood messages even deeper into the industry.

Plans are in the works for additional shared activities within the coming year.

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The Merchant Magazine June 2010

OOD HAS HELD THE NO. 1 spot as the building material of choice in various building applications for decades.

Among these is the outdoor decking/project market, in which pressure treated wood has retained the lion’s share over the years. As the industry has fluctuated, several wood associations have launched and maintained solid, successful wood marketing programs for their species.

Recognizing the need for a strategic, consistent consumer promotion for southern pine, the Southeastern Lumber Manufacturers Association launched SPAN (the Southern Pine Awareness Network) in 2005. With the goal of educating consumers as to the merits of choosing southern pine for all indoor and outdoor projects, the SPAN program found early success through a comprehensive program consisting of targeted advertising and significant earned media.

In 2008 the Real Outdoor Living (ROL) campaign was launched, with the goal of educating consumers and dealers about the strengths of pressure treated wood. With a winning combination of targeted advertising, key sponsorships, public relations, retail outreach, and marketing, the ROL program is off to a strong start.

“With several key audiences in front of us, it was very important to target and streamline all of our activities from day one in order to maximize opportunities and return on investment,” says SLMA president Debbie Burns. “Before we committed to any project sponsorship, any product donation, or any program, we asked our-

Program Elements

selves if this choice would help us sell more pressure treated lumber. If it didn’t pass the test, we passed on it.”

Five years of solid success within the SPAN program meant a short learning curve for the ROL team.

They knew their markets and they knew the product. A strategic longterm plan was developed, incorporating elements needed for strong results.

The marketing part of ROL kicked off with consumer research to determine what homeowners knew, where they gleaned their information, and what influences affected their purchasing decisions. Results were sobering: steady misinformation about pressuretreated wood was everywhere.

Following the research phase, a creative segment kicked in with the development of a look and feel for the ROL program. Key messages were drafted (based on research results) and www.realoutdoorliving.com was launched. Banner ads on key d-i-yrelated sites drove traffic to the new site, as did a $10,000 backyard makeover contest.

Public relations goals were accomplished through the use of varied tactics designed to spread the pressuretreated wood word across all informational mediums. Homeowners were reached through traditional PR, mat

The Marketing Mix

Building-Products.com

service articles, radio media tours, and a satellite media tour. Product donations resulted in additional earned media on television and in key homeowner magazines. Partnerships with regional magazines included participation in show homes—a fantastic way to show off the beauty, strength and durability of treated wood decking.

Earlier research revealed that retail employees were a big source of building product information for homeowners. To reach this key demographic where they shop, partnerships were developed with big-box retailers and independent dealers nationwide.

Several informational elements were created, each designed to educate. Among them: wood education videos, sell sheets, in-store tear pads, magazine inserts, and employee informational pocket guides.

Retail Outreach

Evaluation and analysis is integral to any successful marketing program.

While Real Outdoor Living’s first year is not yet completed, many results are in—and all of them indicate success.

“Success to us isn’t just impressions—it’s looking at whether we

Did It Work?

affected behavior, whether we moved the needle,” says Burns. “It’s easy to get information into the marketplace— it’s like throwing spaghetti against a wall. The success comes with targeted, well-researched information, delivered in precisely the way your audience tells you they’d like to receive it.

That’s when you see a change.”

Measures of Success

While the final program numbers won’t be tallied until July, here are a few high points of the ROL program: • One ROL-partnering dealer had a 30% sales increase following a specific marketing element deployment.

• The $10K Backyard Oasis Makeover contest received over 100,000 online entries—more than three times the amount expected.

• A regional show home featuring a treated wood deck was deemed the most successful in the sponsor’s history and stayed open three extra months, resulting in tens of thousands of added direct consumer hits for the product.

• A radio media tour focusing on spring project ideas garnered tens of millions of listeners—the most in five years of the SPAN program.

Remanufacturing and Wholesale Distribution of High Quality North American Softwoods

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(Actually received a Class“0” rating—the same as concrete.)

• Produced from sustainable forests • Highly water resistant • Highly insect resistant • Rot resistant • Will not deteriorate • Carries 20-year warranty • Can be handled like lumber • 5/4"x6" decking will span 24" • Colors: Sequoia (redwood) and CapeCod (gray)

Also Northern California distributor of WindsorOnePlus FJ sidings & trim • 30-year warranty • Proprietary priming process • SCS air quality standards, indoors & out And carrying complete lines of Redwood • Double Primed, Clear Redwood FJ trim & siding. All sidings VG. • High-end Green & Dry solid lumber.

COMPASS LUMBER PRODUCTS Cotati, CA • 1-800-773-9125 • www.compasslumber.com

Specialists in lumber products for Elegant Outdoor Living Building-Products.com

Now distributing PanelCrafters Cedar Knotty Plywood

Stocking Distributor of Quality Redwood produced by Agwood

WRC • SPF • Pine/ESLP • Ipé • Redwood • WRC FJ • Specialty Sidings 3370 Rippey Rd., Loomis, CA 95650

1-800-626-1233

www.lausmannlumber.com

June 2010 The Merchant Magazine

43

ON Sales

By Dave Kahle

Adding value to every sales call

A

RE YOU WASTING your customers’ time? In this pressurized, multitasking world, where your customers are expected to produce more in less time, they may be growing less eager to meet with you than they were just a year ago. Time is more precious today than ever before, and your customers are feeling the pressure.

In order for your customers to reliably make time to see you, they need to expect that they will gain some value for the time spent with you.

That means that, if you are going to be successful in the world of B2B sales, you’ll need to create a reputation that time spent with you is worth the investment.

If, over time, you can create that idea in the minds of your customers, you’ll find them generally willing to meet with you when you call. And in an economy where “too much to do and not enough time to do it” is the prevalent mind set, that reputation is a valuable asset.

As is always the case, it starts with thoughtfulness and preparation. As we prepare for a sales call, we so often we think about what we want to accomplish and what we want to gain out of the sales call. Very few salespeople ever give any thought to what the customer gets out of it. That’s the starting point.

Here’s a little mental trick to help you. Before every sales call, when you are thinking about what you want to do, and what tools and materials you’ll need, take a moment and ask, “What is the customer going to gain out of this time he spends with me?”

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The Merchant Magazine June 2010

Here’s a list of some possible answers:

1. Some good ideas to help him in his business or his job.

2 . Some ways to help him gain more business.

3. Some ways to distinguish himself from others.

4. Some ideas about how to reduce his costs.

5 . Some good things to think about.

6. You helped him resolve some conflict.

7. You helped him simplify things.

8 . You helped him solve some

problem.

9. You helped him move closer to some objective.

10 . You made him feel better

about himself or his business.

11. He got to spend time with your charming and entertaining personality.

The answer probably lies somewhere within the top 10 items on that list. If you can’t name anything that the customer will gain, then you can safely assume that the time the customer spends with you in that sales call will be a waste of his time. Your relationship may be able to withstand one or two of those, but in the longterm, wasted time will destroy a business relationship.

If you are going to bring value to every customer, every time, then

you’ll need to spend more time preparing to do so. That brings us to two simple rules to add value to every sales call:

1. Present something, every time.

2. Ask something, every time.

Present something, every time, means exactly that. You should, in every sales call with every customer and prospect, have something to talk about, to educate him on, which may be of value to him.

You can, for example, have an idea that you share. Maybe an idea that will help him…

• cut costs

• increase revenues • save time

• do something better or easier • make him more valuable • make his job easier.

You may have a story you can tell Building-Products.com

that provides an example of how someone gained a benefit, or solved a problem.

You could present a new product, a new product line, or a new application for an existing product of which he may not be aware.

You could present a service that your company offers in which he may be interested.

And, finally, you could present a proposal to buy something from you.

The important thing here is that you prepare to present something to every customer and every prospect on every sales call. And not just anything, but rather something that this particular customer may find of value to him.

Don’t forget rule number two: Ask something, on every sales call, with every customer and every prospect.

And I don’t mean a question like, “What do you think of the weather today?” Ask a question that causes the prospect/customer to…

• think about his job or his business in some different way, • consider something that he has probably not thought of before,

IN Memoriam

Michel August “Mike” Pierre Sr., owner of O’Connor Lumber Co., Vallejo, Ca., died May 21 in Santa Rosa, Ca. In 1961, he and his father, August, bought O’Connor, which is now run by Mike’s sons, Mike Jr. and Joe. He later opened a second store with his sons, Mission Ace Hardware, Santa Rosa.

Lyle A. Pearson, 85, former owner of Coburg Building Supply, Coburg, Or., died May 20 in Eugene, Or. During World War II, Mr. Pearson served with the Navy in the South Pacific. He managed Cone Lumber, Eugene, for 17 years and owned Coburg Building Supply for 15 years. He then worked as a lumber broker for 20 years and retired in his early 70s.

Hardie Curt Setzer, 90, retired partner in Setzer Forest Products Inc., Sacramento, Ca., died May 15 in Carmichael, Ca. In 1940, he left the University

Building-Products.com

• clarify some values, goals, objectives or strategies.

The ultimate power of a good question is that it causes the other person to think. The thinking process that results is the value that a customer may receive from the time spent with you. The purpose of the question is not for you to gain information; rather, it is to direct the customer to think about some things in different ways, so that the customer receives some value.

If you take the time to individually prepare something to present and something to ask for each sales call, you will, more times than not, be perceived as bringing some value to the customer. Over time, he’ll be more and more willing to meet with you.

And that reputation will be one of your greatest strengths in the marketplace.

– Dave Kahle, “The Growth Coach,” is a sales consultant, trainer and author of a free monthly “Thinking About Sales” ezine and six books—including Question Your Way to Sales Success. Reach him at (800) 331-1287; www.davekahle.com.

of Oregon to join the Army Air Corps and was a fighter pilot instructor in Arizona.

He and his brother, Cal, grew the company, which was founded by their father in 1927.

He shared the family fortune as c.e.o. of the Setzer Foundation, which gave money to build a wing at the Crocker Art Museum, expand the Sutter Medical Center, renovate the Stanford Mansion, and found the Aerospace Museum of California.

Edward Lee Habel Sr., 85, former sales manager of Boise Cascade, Great Falls, Mt., died May 14 in Great Fall.

During World War II, he served as a Marine Corps machine gun crewman in the Asiatic Pacific Theater.

He learned the trade of glazing while working part-time at Monarch Lumber Co., Great Falls, during high school. He later joined Boise Cascade, then became owner of TC Glass, retiring in 1987.

June 2010 The Merchant Magazine

45

NEW Products

Rainscreen for Masonry

Home Slicker rainscreen from Bejamin Obdyke is designed to alleviate moisture problems in stone, stucco, and masonry applications.

The product’s vertically channeled matrix forms the air space, while a breathable fabric blocks mortar from seeping into the newly formed cavity and allowing moisture to pass through.

Each roll weighs 15 lbs., covers 200 sq. ft., and has an UV exposure of 30 days maximum.

BENJAMINOBDYKE.COM (800) 346-7655

Lightweight Soffit Sheet

The new Wain-Sof PVC sheet from KOMA Trim Products was designed for ease of handling and jobsite flexibility in panel and soffit applications.

The 3/8” sheets weigh less than 20 lbs. each and are available in two lengths (3’ and 4’).

Factory packaging on over-sized pallets further protects critical edges.

KOMATRIMBOARDS.COM (800) 330-2239

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The Merchant Magazine June 2010

Precast-Look Fiber Cement

Nichiha EmpireBlock is a lightweight siding option with the look of precast concrete.

The fiber cement panels are 10 ft. long, 18” wide, and 5/8” thick.

Each is shiplapped on two long edges for a tight fit.

NICHIHA.COM (866) 424-4421

Larger Siding Panels

Quest vinyl siding from Mastic Home Exteriors is now offered in a long-length, 25’6” panel to reduce or eliminate seams.

Available in 22 colors, the siding also comes in 12’ and 15’ panels that never need painting or staining.

WWW.PLYGEM.COM (800) 962-6973

Building-Products.com

Certified Particleboard

FreeForm particleboard from The Collins Cos. now meets moisture-resistant specifications for ANSI MR-10.

Made from 100% recycled post-industrial fibers, the product is FSC-certified and LEED-compliant. It is also certified under California Air Resources Board CARB Phase 2.

COLLINSWOOD.COM (800) 547-1793

Building-Products.com

Deck Installation Made Easier

Fasco America’s new InvisiDeck Hidden Scrail fastener system reportedly delivers clean deck surfaces without visible screw heads.

The system was designed to install hidden clips three to five times faster than conventional applications.

Included are Scrail fasteners, InvisiDeck installation tool, and I-CLP clips for use with both composite and hardwood decks.

FASCOAMERICA.COM (800) 239-8665

Stainless Steel Fastners

Simpson Strong-Tie’s new line of premium stainless steel fasteners are designed for outdoor applications.

The nails and screws can be used for decking, siding, roofing, framing, and finish work.

They reportedly provide superior corrosion resistance, strength and durability.

STRONGTIE.COM (800) 999-5099

June 2010 The Merchant Magazine

47

Cedar Shake Lookalikes

Individual Shakes are the latest addition to CertainTeed’s WeatherBoards fiber cement siding, offering the beauty of cedar without the upkeep of wood.

Shakes are primed with FiberTect sealant, in widths of 6-1/4”, 8-1/4” and 12”, for installation with a straight or staggered edge.

CERTAINTEED.COM (800) 233-8990

Revolutionary Gates

The Revolution Gate from Ultra Aluminum has hidden workings—motor, actuator, and all connections—for a clean look and easier operation.

It attaches to the gate with a one-piece extrusion and a special set of hinges on top and bottom.

ULTRAFENCE.COM (800) 656-4420

Decorative Inserts

Lumicor decorative acrylic panels can be specified in place of glass in select interior French doors made by Simpson Door.

Design choices include natural, textile or industrial materials.

Customers can also create their own panels with a combination of items to achieve their own look and privacy rating.

SIMPSONDOOR.COM (800) 746-7766

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) and Borates 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

48

The Merchant Magazine June 2010

Building-Products.com

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

Wood Bricks

Rustix Woodbrix, an interlocking wall covering made from real wood, is new from Kark Lumber.

The brick-sized pieces measure 1”x4” and are packed 96 to a box, to cover 16 sq. ft.

KARKLUMBER.COM (607) 648-9339

Screens With a View

Phifer’s BetterVue insect screening now has builtin anti-microbial protection to inhibit stain-causing bacteria, mold and mildew.

The flame-retardant screen was designed to enhance the view, improve airflow, and provide protection against small insects.

It is available in 50- and 100-ft. rolls, in widths up to 108”.

PHIFER.COM

(205) 345-2120

Building-Products.com

Timbers Green & K.D. Export

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 June 2010 The Merchant Magazine

49

The Slate Show

Lamarite Slate composite shingles from TAMKO now come in variegated colors for a more natural stone look.

Listed for UL Class A fire resistance and Class 4 impact resistance, they come 5”, 7” and 12” wide, in five colors—mottled pewter, patina, copper stone, variegated plum, and rustic stone.

TAMKO.COM

(800) 641-4691

Steel Stud System

Not as Dusty

A new ready-mixed joint compound from National Gypsum reportedly reduces airborne dust by more than 60%.

ProForm with Dust-Tech is GreenGuard certified and is packaged in 4.5-, 3.5-, or 1-gallon containers.

NATIONALGYPSUM.COM

The Edge drywall steel-framing system from Super Stud Building Products reportedly has fewer sharp edges than traditional metal framing.

Constructed from 40KSI steel, it is approved for use in one- to four-hour wall assemblies.

EDGESTEELFRAMING.COM (800) 477-7883

(704) 365-7300

Tightly Screened

Screen Tight added an ultralow profile to its line of extruded aluminum porch screening.

MINItrack’s hidden fasteners allow a seamless look and unobstructed views. The powder-coated aluminum channels are available in 8-, 10-, or 12-ft. lengths, in either white or bronze.

SCREENTIGHT.COM (800) 768-7325

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The Merchant Magazine June 2010

Building-Products.com

ASSOCIATION Update Western Building Material Association will combine its annual convention, previously held in the fall, with its 40th annual Young Westerners Conference.

The 107th annual convention is set for Feb. 9-11 at the Tulalip Resort, Tulalip, Wa. Featured are the table-top exhibit showcase, educational programs, allindustry reception, President’s dinner, and silent and live auctions.

Mountain States Lumber & Building Material Dealers Association stages its WOOD Council golf tournament July 20 at the Ranch Golf & Country Club, Westminster, Co. A webinar on tools & machinery safety is scheduled for June 17. July 6 and 15 the topic will be blood-borne pathogens. Personal protection equipment will be covered Aug. 10 and 26.

Lumber Association of California & Nevada has booked its annual 2nd Growth summer conference for

July 15-16 at Hotel Solamar, San Diego, Ca. The event will start at the Coronado Municipal Golf Course.

The opening reception and dinner will feature Jeffrey Hansler, who will offer tips on building better communication skills.

On the second day, Ed Murphy, manager of resources inventory systems at Sierra Pacific Industries, will offer a forestry update. The event will end with dinner and a San Diego Padres baseball game at Petco Park.

Portland Wholesale Lumber Association’s next meeting is Aug. 5 at the Newport Seafood Grill, Tigard, Or.

West Coast Lumber Inspection Bureau elected Terri Adair, Seneca Sawmill Co., Eugene, Or., as its 2010-1012 president.

New vice president is Ted Stock, Western Cascade Industries, Toledo, Or., and secretary/treasurer is

Clement Frank, Frank Lumber, Mill City, Or.

Western Wood Products Association is staging its 2010 Lumber Pioneers annual meeting Sept. 17 at the Monarch Hotel, Clackamas, Or.

Montana Wood Products Association will hold its annual convention in conjunction with the Forest Resource Association’s western meeting Sept. 21-23 in Whitefish, Mt.

AMSO (American Softwoods), the international marketing brand of APA-The Engineered Wood Association, Softwood Export Council, and Southern Pine Council, has opened an office in China.

AmSo contracted with WG Consulting, a firm composed of former AF&PA China office employees, to represent the U.S. softwood industry, providing support for trade shows, missions, seminars, and technical work.

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

THUNDERBOLT WOOD TREATING …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) 367-1917

Building-Products.com

June 2010 The Merchant Magazine

51

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 the type.

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

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. If additional space is needed, an option on additional 30,000-sq. ft. warehouse will be available soon. Office & 30,000sq. ft. front warehouse available at .29¢ per sq. ft. Option for rear warehouse .25 per sq. ft. If interested, please call Tom Williams, (530) 742-2168, between 8 a.m. and 5 p.m.

5

18th of previous month.

To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660, or dkoenig@building-products.com. Names of advertisers using a box number cannot be released.

HELP WANTED

MANUFACTURERS REPRESENTATIVE: Well established West Coast forest products company seeks sales & marketing professional for Midwestern territory. The successful candidate will have a solid customer base with extensive experience marketing western red cedar lumber, siding, timbers, shakes and shingles.

Knowledge of whitewood lumber an asset.

Please send resume to Box 716, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660 or by email to dkoenig@building-products.com.

FOR SALE

Let us quote

CUSTOM LUMBER COVERS ROLLS • SEALED BAGS Available for Delivery Rolls 10 x 300ʼ Plywood Bags 4 x 4 x 8ʼ L. I. INDUSTRIES 800-526-6465

LUMBER TRADER We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation. 60% split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

FAX 718-793-4316 apronaz@aol.com www.lumbercoversprotect.com

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Wednesday

3

3-4 Michiga n Lumbe r& Building Materia ls Association, show, Mt. Pleasan 3-4 Nationa t, Mi. l Retail Federation, innovati on & retail San Francis marketing confere nce, co, Ca. 3-6 Lumbe rmens annual meetingMerchandising Corp., , Salt Lake City, Ut.

9

8-9 Americ an Institut e of Constru ction, annual Timber Lauderd meeting , Ft. 8-9 Wester ale, Fl. n Wood Association, Products annual meeting Portland , Or. ,

29-31 Interna tional Symposium Wood Compo sites & Technic Seattle, al Worksh Wa. op,

10

9-11 Wood Techno logy Show, Or. Portland ,

23 23-24 Americ an Archite Manufa ctural

cturers region spring Assn., southea st 23-27 Mouldin meeting, San Antonio g& Association, Millwork Produc , Tx. annual meeting ers Montere y, Ca. ,

30

10

Southern Cypress Manufa cturers Association, annual 10-11 Northw meeting , Tampa, estern Fl. Association, Lumber Nebrask convent ion, La Vista, a lumber 10-12 Hardwo Ne. od Association, Manufacturers conference Tampa, & expo, Fl.

16

15-17 Nationa l Lumbe r & Buildin Materia l Dealers g Assn., legislati conference & ve Washington, green building forum, D.C. 15-18 Window & Association, Door Manufacturers Washington, legislative confere nce, D.C.

14-16 Interna tional Show, Chicago Home & Housew ares , Il. Dayligh t Saving s Time Begins

or just a drawing deck—and not ® sales, of their dream ls Software , a customer a picture to create any angle. DeckToo a prospective can look at from builders and suppliersshape and Imagine showing it easy for deck r, 3D image they deck for decks, makes detail, from the sketch, but a full-colo lists. g software program laptops. Customize nearly every ls and material their g plans, proposa design and estimatin quickly generatin designs right from while ® deck , ind fasteners one-of-k ls Software . ® , connectors and Strong-Tie DeckToo railings to materials sales with Simpson 9. proposals into or call (800) 999-509 Learn to turn your om/decktools call for details.

Visit www.strongtie.c See website or

2010

Tuesday

2

1-2 Greenp 1-2 Wester rints, Atlanta, Ga. n Wood winter meeting Preservers Institute, , Portland , Or.

7

or a drawing d not just ® sales, deck—an s Software , a create dream liers to Tool of their e. Deck and supp shape and picture any angl builders deck . omer a rial lists ive cust can look at from it easy for deck detail, from the s and mate a prospect they makes every image decks, showing e nearly g plans, proposal color, 3D are program for ps. Customiz Imagine ® ratin fulla gene but ware . their lapto e quickly ating softw sketch, Tools Soft and estim designs right from fasteners, whil ie® Deck ng-T design and rs Stro nd deck ecto son one-of-ki materials, conn with Simp 5099. to s into sales call (800) 999ils. railings osal deta prop for ls or or call turn your /decktoo website Learn to .strongtie.com now. See Visit www is available

gazine Monday

®

17 St. Patrick ʼs Day

24 24-26 Kentuc ky Forest Industr annual 24-26 North meeting, Bowling ies Assn., Green, Ky. American Wholes Lumber ale Association, confere regional 24-27 JLC nce, New Orleans , La. Live Show, Providence, R.I.

31

4-5 Northw estern Iowa lumber Lumber Associ ation, convent ion, Coralvil le, Ia.

11

Saturday

6

5-7 Home Shows, Springfield, Tx. Il.;

19

18-19 Capitol Industr Expo, Fredrick ial Woodw orking sburg, Va.

25 25-27 Redwo

od Region Confere Logging 25-28 Ace nce, Ukiah, Ca. Hardwa re Corp., market, New Orleans spring , La.

19-20 Blish-M ize Co., spring market, Overlan 19-21 Home d Park, Ks. Shows, Mankato, Worth, Mn.; Fort 19-21 True Tx. Value Co., spring market, Chicago , Il.

26 26-27 Amarill o Hardwa re, market, Amarillo 26-28 Home , Tx. & Builder s Shows, LaGrange, Il.; LaCross e, Mn.

February S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 21 22 23 20 24 25 26 28 27

6-7 HDW Inc., spring market, Jackson 6-7 Long-L , Mi. ewis Montgomery, Hardware, market, Al.

Dallas,

12

18

are subjec t to change . Contac t the sponso Building r for more March Products information.

Digest & 16 – Advertising The Mercha Please see & pages 2-3 nt MagzinEditorial Deadli ne for eʼs “Press for phone ure Treate numbers. d Wood” Special Issue

Building-Products.com.

Features digitized editions of our magazines, event phones, and news updated daily to keep industry professionals constantly returning.

BPD–Bu ilding Pro ducts Dig est Frida y

5

11 Los Angeles LumbermanʼsHardwood Club, golf tournam 11-12 ENAP Inc., annual ent, Chino, Ca. Louisville, meeting & show, Ky. 11-12 Mounta in States Lumber Building & Materia l Dealers Association, 12-14 Home expo, Denver, & Remod eling Shows, Co. Dubuqu e, Ia.; Pa.; Tacoma Portland, Or.; Reading , Wa. ,

Passov er Begins

Show dates

Thursday

4

13 20 20-21 Home & Design Shows, Costa Mesa, Ca.; Maplew Mn. ood,

27 April S M T W T F S 1 2 3 4 5 6 7 8 9 11 12 13 10 14 15 16 18 19 20 17 21 22 23 25 26 24

Deluxe Industry Calendar of Events. 12-month, wall-hanging calendar with hundreds of industry events and one sponsor per month for exclusive, extended exposure.

27 28 29 For the lates 30 download t industry news and free www.buil event photos, to visit ding-pro ducts.com

For rates and more information, contact Alan Oakes or Chuck Casey at (949) 852-1990 ajoakes@aol.com • ccasey@building-products.com

52

The Merchant Magazine June 2010

Building-Products.com

DATE Book

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

PCBC – June 9-11, Moscone Center, San Francisco, Ca.; (916) 443-7933; www.pcbc.com.

Los Angeles Hardwood Lumberman’s Club – June 10, election night, Beckham Grill, Pasadena, Ca.; (626) 445-8556.

Seattle Hoo-Hoo Club – June 11, golf tournament, Mt. Si Golf Course, Snoqualamie, Wa.; (425) 883-2777.

Western Wood Preservers Institute – June 13-15, summer meeting, Zermatt, Midway, Ut.; (800) 729-9663; www.wwpinstitute.org.

National Retail Federation – June 14-16, loss prevention conference & expo, Atlanta, Ga.; (202) 783-7971; www.nrf.com.

National Lawn & Garden Show – June 15-17, Renaissance Colorado Springs Hotel, Spa & Conference Center, Colorado Springs, Co.; (888) 316-0226; www.nlgshow.com.

Celebrating 43 years of fine hardwood manufacture and distribution For the finest service in the industry, call on Swaner for a steady, reliable source of quality hardwood products at competitive prices.

• Hardwood Lumber / S4S • Hardwood Plywood • Custom Hardwood Moulding • Custom Hardwood Flooring

Tuolumne Lumber Jubilee – June 17-19, Tuolumne, Ca.; (800) 266-6436; www.tuolumnelumberjubilee.com.

Western Building Material Association – June 18, Young Westerners Club board meeting, Northern Quest Resort, Spokane, Wa.; (360) 943-3054; www.wbma.org.

Forest Products Society –June 20-22, convention, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Western States Roofing Contractors Association – June 20-23, convention & expo, Paris Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com.

Portland Hoo-Hoo – June 25, golf tournament, Forest Hills Golf Course, Forest Grove, Or.; (503) 675-0040.

Remodeling & Decorating Show – June 26-27, Los Angeles Convention Center, Los Angeles, Ca.; (818) 557-2950.

5 West Magnolia Blvd., Burbank, Ca. 91502 Fax 818-846-3662

(800) 368-1108

Annual Old Time Lumbermen’s BBQ – July 10, Davenport, Ca.; (831) 457-5024.

Temperate Forest Foundation – July 13-16, Pacific Northwest teachers tour, Corvallis, Or.; (503) 445-9472; www.forestinfo.org.

Western Building Material Association – July 14-16, mid-year board meeting, Skamania Lodge, Stevenson, Wa.; (360) 9433054; www.wbma.org.

WHERE QUALITY IS AGELESS

Lumber Association of California & Nevada – July 15-16, 2nd Growth annual summer conference, Hotel Solamar, San Diego, Ca.; (800) 266-4344; www.lumberassociation.org.

North American Retail Hardware Association – July 19-20, annual convention & conference, Savannah, Ga.; (317) 290-0338; www.nrha.org.

Mountain States Lumber & Building Material Dealers Assn. – July 20, WOOD Council golf tournament, Ranch Golf & Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.

Rogue Valley Hoo-Hoo Club – July 29-30, dinner & golf, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.

Humboldt Hoo-Hoo Club – Aug. 6, golf tournament, Baywood Golf & Country Club, Arcata, Ca.; (707) 268-3082.

Orgill Inc. – Aug. 12-14, fall dealer market, McCormick Place, Chicago, Il.; (901) 754-8850; www.orgill.com.

Southern California Hoo-Hoo Club – Aug. 18, dinner & meeting, Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842.

International Woodworking Fair – Aug. 25-28, Atlanta, Ga.; (770) 246-0608; www.iwfatlanta.com.

Black Bart Hoo-Hoo Club – Aug. 27, trap shoot & BBQ, Black Point Sports Club, Petaluma, Ca.; (707) 621-4852.

Remodeling & Decorating Shows – Aug. 27-29, South Town Expo Center, Sandy, Ut.; Aug. 28-29, Pasadena Conference Center, Pasadena, Ca.; (818) 557-2950.

Building-Products.com

WHOLESALE ONLY • MILL DIRECT & LCL

Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers CALL SALES AT (800) 400-8383 • (951) 681-4707 Rick Anfinson Outside Sales Darin Curran (949) 412-1894 Eddie Howdershelt (909) 993-2701 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

June 2010 The Merchant Magazine

53

IDEA File

A lumber dealer in Upstate New York knows it takes more than building materials to attract new customers in a rural area.

That’s why Ward Lumber, Jay, N.Y., recently hosted Poultry Night with complimentary pizza, a lecture by an animal nutrition expert, and the chance to network with other poultry aficionados.

“We started selling feed a while ago, when I realized how big a need there was in the area,” said president Sidney “Jay” Ward III, who organized the event. “It was mostly from talking to people around town.”

Ward provides free delivery of poultry feed and recently began selling all species of poultry, including chickens for meat and eggs, ducks, turkeys, and games birds such as grouse and pheasant. Special prices were offered on orders of at least 25 birds during “Chick Days” through April 1.

“We do it through a hatchery in Ohio,” said Ward.

“We haven’t yet gotten a huge response and we’re new at this, but we’re hoping for a good reaction.”

Guest speaker Terry Cushing, an animal nutrition specialist for Vermont-based Poulin Grain Feed Co., spoke about how to care for poultry in a healthy and cost effective way. He assured the audience that raising poultry isn’t very hard, and stressed the importance of being self-sufficient.

“Who knows what will happen in years to come,” he said. “It may be pretty viable to be able to raise your own food.”

Ward also operates another store in Monroe, N.Y., as well as an eastern white pine mill and planing mill in Jay, pre-fabricated home package and components supplier Ward Lumber Homes, and manages over 6,000 acres of timberland.

More Than Just Chicken Feed

ADVERTISERS Index For more info on advertisers, call themdirectly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com] .......................41

AERT [www.aertinc.com]...............................................................................8 Ainsworth [www.ainsworth.ca]..............................................................26-31

Anfinson Lumber Sales [www.anfinson.com] ...........................................53

Austin Hardwoods & Hardware...................................................................54 Auto-Stak Systems [www.autostak.com]...................................................36

Cabot [www.cabotfactoryfinish.com]...........................................................5

Cal Coast Wholesale Lumber......................................................................48

California Redwood Co., The [www.californiaredwoodco.com] ................3 California Timberline......................................................................................4 C&E Lumber Co. [www.lodgepolepine.com] .............................................48

Capital [www.capital-lumber.com]........................Cover II, 41, 45, Cover IV Collins Companies [www.collinswood.com] ...............................................7

Compass Lumber Products Inc. [www.compasslumber.com] ................43

Fletcher Wood Solutions [www.tenonusa.com]........................................39 Fontana Wholesale Lumber [www.fontanawholesalelumber.com] .........50

Huff Lumber Co. ...........................................................................................13 Keller Lumber Co. ........................................................................................50

Lausmann Lumber [www.lausmanlumber.com]. ......................................43 Manke Lumber Co. [www.mankelumber.com]...........................................49 Norman Distribution Inc. [www.normandist.com].....................................35

Pennsylvania Lumbermens Mutual Insurance Co. [www.plmins.com]...37 Redwood Empire [www.redwoodemp.com] ..............................................23 Reel Lumber Service [www.reellumber.com] ............................................32

Reliable Wholesale Lumber Inc. [www.rwli.com] ......................................34 RISI [www.risiinfo.com/crows]....................................................................38 Roseburg Forest Products [www.rfpco.com]............................................19

Royal Pacific Industries...............................................................................21

RoyOMartin [www.royomartin.com].................................................Cover III Simpson Strong-Tie [www.strongtie.com]...........................................33, 47

Serving the Woodworking Professional Since 1981

Southern Californiaʼs Largest Selection of Domestic and Exotic Hardwoods Including Plywoods, Sheet Goods, Mouldings and Veneers

Santa Ana (714) 953-4000 • San Diego (858) 536-1800

54

The Merchant Magazine June 2010

Snider Industries [www.sniderindustries.com].........................................40

Swaner Hardwood Co. [www.swanerhardwood.com] ..............................53 Swanson Group Sales Co. [www.swansongroupinc.com].......................25

Thunderbolt Wood Treating [www.thunderboltwoodtreating.com].........51

Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net] ..................51

Viance [www.treatedwood.com] .................................................................15

Western Woods Inc. [www.westernwoodsinc.com] .........................Cover I Woodtone [www.woodtone.com]................................................................35

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