The Merchant Magazine - September 2012

MERCHANT

OSB FORECAST REDWOOD MARKETING AIDS UMPQUA VALLEY RECAP

The

SEPTEMBER 2012

Magazine

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

8k_bZ M_j^ Ekh Ijh[d]j^" 9ekdj Ed Ekh <_h[ H[i_ijWdY[

BF <bWc[8beYa <_h[#HWj[Z EI8 I^[Wj^_d] LP® FlameBlock™ Fire-Rated OSB Sheathing offers you the best of both worlds—impressive structural strength and remarkable burn-through fire resistance. Created by applying a patented, non-combustible Pyrotite® coating to LP® OSB panels, LP FlameBlock Sheathing is an ICC certified (ESR-1365), PS2-rated structural sheathing with a Class A Flame Spread Rating. It provides extended burn-through resistance, delivering a 20-minute thermal barrier (ASTM E119). It’s durable on the job site, easy to work with, and is Exposure-1 rated to withstand rain during normal construction delays. LP FlameBlock Sheathing is cost effective and available in a variety of PS2-rated thicknesses and lengths, including Struc-1. And from an environmental perspective, it contains no hazardous chemicals. Backed by a 20-Year Transferable Limited Warranty, LP FlameBlock Sheathing is the panel to count on when every minute matters. For more information on LP FlameBlock Fire-Rated Sheathing, call LP Building Products at 1-888-820-0325.

OSB

|

SmartSide®

|

SolidStart®

|

TopNotch®

|

TechShield®

|

CanExel®

LPCorp.com/FlameBlock

|

© 2010 Louisiana-Pacific Corporation. All rights reserved. Pyrotite is a registered trademark of Barrier Technology Corp. All other trademarks are owned by Louisiana-Pacific Corporation.

The

MERCHANT

Special Features

Magazine

In Every Issue

9 MARGIN BUILDERS CAPITALIZE ON REDWOOD PROMOTIONS

12 PRODUCT SPOTLIGHT STEEL SCREWS ADAPT TO EVOLUTION OF THE DECKING INDUSTRY

13 FEATURE STORY THE FUTURE OF OSB MANUFACTURING

15 PRODUCER UPDATE: OSB 2012 16 INDUSTRY TRENDS RECENT IMPROVEMENTS IN OSB

18 COMPETITIVE INTELLIGENCE TWO-UNIT NEW MEXICO DEALER REBRANDS FOR THE FUTURE

24 MASTERING LEADERSHIP COACHING THE UNCOACHABLE

36 PHOTO RECAP: UMPQUA MILL WEEK

6 TOTALLY RANDOM 20 OLSEN ON SALES 22 GREEN RETAILING 28 MOVERS & SHAKERS 36 FAMILY BUSINESS 38 NEW PRODUCTS 46 IN MEMORIAM 47 ASSOCIATION UPDATE 48 CLASSIFIED MARKETPLACE 49 DATE BOOK 50 IDEA FILE 50 ADVERTISERS INDEX

September 2012

Volume 91 Number 3

Online BREAKING INDUSTRY NEWS, INDUSTRY PHOTO DOWNLOADS, & THE MERCHANT: DIGITAL VERSION BUILDING-PRODUCTS.COM

CHANGE OF ADDRESS Send address label from recent issue if possible, new address and 9-digit zip to address below. POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872. The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2012 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

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

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 info@wetreatwood.com

Sales for Coast Wood Preserving

4

The Merchant Magazine September 2012

Building-Products.com

TOTALLY Random By Alan Oakes

There is no quick fix— the real problem is uncertainty

D

URING MY MANY CALLS,

I try to assess the heartbeat of the industry, and of late the best that most can say is that business is better than last year. In certain parts of the country, improvement is marginal. In areas initially reporting strong sales, I sense that business has taken a step back in the last month or so. While I certainly hear from individual companies that are doing well, many are still bobbing along. But the housing and remodeling industry cannot really change until there is a vast improvement in business outlook nationwide, and individuals and businesses are confident that they can spend and invest and not regret it later. High uncertainty creates a vicious circle or standstill and paralysis. There are so many factors outside of our control today that we live in a perpetual state of waiting for the other shoe to drop. We lack confidence—and with good reason. Economic growth appears to be slowing again, we are burdened by unemployment, the euro debt crisis, the China slowdown, and the looming fiscal-cliff crisis at the turn of the year. Businesses are reporting that they are putting capital and human investments on hold until there is more clarity. On an individual basis, if we look at our investments, many of us have fled the market and not for any other good reason than we have not made a buck in many a year. We keep getting sold on the notion of investing for the long run, but continue to see that as soon as we show any gains they get wiped out by the next catastrophe. I read recently that Boomers like me cannot take risk. Gen X and Gen Y believe in Facebook but not its stock, and Gen Z has no money. The job crisis in this country needs to get to a healthier state. It may be true that we are no longer at the official 10% level of unemployment of recent years, but the current 8.2% figure is a joke, as it does not include the millions who cannot get a job and have given up. What many do not know is that the unemployment jobless rate is based on a survey of 60,000 households. So my question is, who selects these 60,000? With such a small sample, I am not sure how real the number is. I know a handful of people who have been laid off and not one of them have found a real job yet—some even after a year and all highly qualified. Many of us could replicate this example with our own friends, meaning true unemployment is probably over 15%. So how do we get an improved situation, when our job creation engine is at a crawl? Frankly, we as a nation must first realize that this is our No. 1 critical need and that decades of kowtow-ment to other nations and allowing our industries to be decimated by unfair business practices must change. Our seeming willingness to bash big business (actually, all business) will not allow this country to get out of this crisis. We have hovered around 8.1% to 8.3% unemployment for a year or so, and it does not seem to change. (And that doesn’t take into account that most people, even when reemployed, end up with substantially less pay than in their previous employment.) The fact is that we have accepted losing our industries and allowing our average wages to decline. We need to grow our economy, as we only average 151,000 jobs a month to date this year. Add this to the fact that 50% of families are not earning enough to pay taxes and the scope of the issue is very clear. Forget the theory of taxing the rich more—you cannot tax them enough to get out of this mess. We need not only to create new industries, but also to find a way to bring back and re-tool some of our old industries. We need to encourage R&D, and we have to take advantage of the energy at our disposal. Our regulations absolutely put us as at a disadvantage compared to our international competitors. We have serious structural issues that only seem to get worse, not better. Our country’s long-term solutions are pushed aside by politicians determined to maintain their comfy lifestyle and stay in power. Regulations, taxation and energy are all issues that never change for the better. With Administration after Administration and Congress having tantrums, nothing changes and we continue to watch our economy sink even further. It scares me. I hope it scares all of you, too—and especially those in Congress and the White House, whomever they may be in 2013. What we want now is true leadership through this black hole! Alan Oakes, Publisher ajoakes@aol.com

6

The Merchant Magazine September 2012

The

MERCHANT

Magazine

www.building-products.com

A publication of Cutler Publishing

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

Publisher Alan Oakes ajoakes@aol.com

Publisher Emeritus David Cutler

Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Dwight Curran James Olsen Jay Tompt Carla Waldemar

Advertising Sales Manager Chuck Casey ccasey@building-products.com

Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

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

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

CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50

FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.

SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping

Building-Products.com

MARGIN Builders By Charlie Jourdain, California Redwood Association

Redwood ramps up

Expanded promotions help sell redwood

T

HE MISSION of the California Redwood Association is to leverage the collective strength of its members to communicate all benefits of redwood lumber in a way that complements each member’s marketing and promotional programs. Dual impacts of economic recession and competition from alternative products have affected redwood market share just as they have for many other traditional building products. As the economy grows its way out of the depths, the redwood industry is implementing plans to grow anew just as the thousands of acres of healthy, sustainable redwood forests grow along California’s north coast. The plan includes various methods of media outreach: radio, television, traditional print, web-based, and social networking. “We love redwood and we love working with the California Redwood Association, a longtime partner and supporter of On the House (OTH) with the Carey Brothers,” says popular radio host and syndicated writer James Carey. For example, this year, the CRA was the platinum sponsor of the show’s Great Backyard Makeover Sweepstakes, which received 8,000 entries, the most ever. Most entrants applied through a link to Facebook, which greatly expanded CRA’s social network. The grand prize winner of the 2012 contest, Jeffrey Sellier of Marietta, Ga., will receive $5,000 worth of redwood decking. “My entire family was present during the grand prize announcement; they were all cheering. I can’t wait to get started on the renovation of my backyard entertainment area,” he says.

Building-Products.com

All photos courtesy CRA

The redwood will be used to replace an existing non-redwood deck. This will add significant value to the Sellier residence and provide a story that CRA can follow in the future. In addition to the sweepstakes, the redwood message can be heard at On the House radio, which airs every Saturday morning from 9:00 a.m. to 1:00 p.m. EST, reaching more than two million listeners on 200 stations nationwide. Redwood content will also be included in the OTH enewsletter, within banner ads on www.onthehouse.com, and in the

OTH column in two issues of Family Handyman magazine. Indeed, media continue to be attracted to redwood. On June 8, the redwood message was heard by listeners of Your Place, Your Space Home & Garden Radio on KNOC 1680 and beachcitiesradio.com in Orange County, Ca. As CRA president, I discussed green decking materials, redwood versus plastics, and how redwood decking and siding meets the California wildland/urban interface fire codes with host Ana Hitzel, a strong proponent of natural, energy-

September 2012 The Merchant Magazine

9

efficient building materials such as redwood. Another Southern California-based proponent of naturally beautiful and durable redwood is professional deck designer Claudia Schmutzler. Recently featured in Better Homes & Gardens’ “Deck, Patio & Pool” issue, Claudia described her dream deck: “That’s an easy one: my own custombuilt redwood deck.” Claudia, who often promotes redwood in media interviews, has projects that can be seen at www.windsordecksandgardens.com. Radio and magazines are not the only media being used to get the redwood message out. Fans in the Bay Area tuned into local Oakland A’s games have no doubt seen the TV ads espousing sustainable forestry and redwood aired by CRA member Mendocino Forest Products. If you happened to be lucky enough to get a ticket to the sold-out

A’s vs. Red Sox game on July 3, you would have seen the between inning award of new redwood decking to a deserving entrant in the “Replace Your Ugly Deck” contest sponsored by CRA member Humboldt Redwood Co. In the near future, residents of California’s north coast will be seeing TV commercials promoting the benefits of locally grown and sustainable redwood lumber products, a key to the region’s current and future economic vitality. This is all part of a Humboldt-Made campaign to promote the local economy. Check out www.humboldtmade.com. CRA communications efforts over the past several months also have centered on the Life Cycle Assessment study conducted by CORRIM. Now that the study is complete, the information can be used to help promote the significant environmental benefits of naturally beautiful redwood vs.

imitation plastic alternatives. The LCA proves that redwood has little impact on our environment and possesses a miniscule environmental footprint when compared with that of plastic and composite decking. The amount of carbon stored in redwood decking exceeds the total carbon emissions emitted during its whole life cycle. “If you were trying to invent an industrial process that would take carbon dioxide out of the air and store it safely, had no negative impacts on the environment, and created products you can use every day using very little energy to do it, you couldn’t do better than inventing a forest. And redwood forests do an excellent job at this because of the ideal climate where they grow,” says CORRIM executive director Elaine Oneil, Ph.D. To further redwood’s environmental message, a new website— www.RootedInTruth.org—has been

While recognizing that the majority of redwood sales are decking related, the California Redwood Association has also noticed that

more and more builders and remodelers—and indeed its own mill members—are utilizing redwood beyond the deck, on projects and

products both big and small. For example, Humboldt Redwood Co. offers ready-to-use redwood posts, railings and panels for easy fence construction. Similarly, the California Redwood Co. recently launched a popular line of redwood planters, perfect for flanking a front door or marking borders of a garden path. On a larger scale, we recently came across a project in Sonoma County, Ca., that is a prime example of how builders can use redwood: a custom furniture maker has featured redwood throughout his dream workshop and studio. His inspiration came from a natural meadow backed by redwood trees below the main house: the perfect location for a high-end barn. His goal was to blend the new structure with the wonderful surroundings. An exterior of re-sawn California redwood boards, finished with rough-sawn battens, mirrored the naturally weathered 60-year-old board and batten siding of the main house. Other structural details, such as the ornamental roof stays and fascia, were also constructed from rough-sawn California redwood lumber.

Redwood Isn’t Just for Decking

DRAMATIC ROUGH-SAWN redwood barn serves as furniture maker’s workshop.

10

The Merchant Magazine September 2012

Building-Products.com

launched. Developed by the CRA in partnership with other organizations who share a common goal of providing accurate environmental information, RootedInTruth.org is committed to presenting the facts as clearly and fairly as possible. Our goal is simple: to clear the air and let the truth take root. RootedInTruth.org information was distributed during the Pacific Coast Builders Conference June 2728 in San Francisco, where CRA and member personnel staffed an association booth, and at the Forest Center at Cal Expo July 12-29 in Sacramento. Plans are in place by CRA and members to staff booths at 2012 Deck Expo Oct. 10-12 in Baltimore, Md. While it may appear as if all industry promotional activities are focused around decking, everything from siding to planter boxes fit into our campaign, illustrating the tremendous versatility of redwood. Case in point; the

redwood board-and-batten siding used to clad a fabulous barn-like structure used as a music studio, woodworking shop, and garage in Sonoma County, Ca. (see sidebar below). Clad in durable and affordable Construction Heart redwood, the Factorworks Studio has been professionally photographed by CRA for use in current and future promotions. The Factorworks Studio is currently being featured on www.houzz.com, as well as other electronic and traditional media outlets. These images will join the hundreds of other redwood images maintained by CRA. Check out the “Be Inspired” section of CRA’s website (www.calredwood.org) or www.redwoodthenaturalchoice.com for a sample of images that are available for use by members and customers to help promote and sell their redwood products. Maintained by CRA art director Ali Vorhies

In addition to the woodworker’s power tools and materials, the redwood barn has a few “man cave” elements. The north wing is divided into lumber storage, playing studio, and recording equipment room. The south wing was developed into a three-car garage with painted auto and motorcycle logos gracing the interior wall.

The 2,000-sq. ft. workshop/studio at once takes command of the meadow, yet still appears at home in the open space. Complementing its surroundings, the barn is a great demonstration of how redwood lumber shines through on every type of project. Redwood certainly isn’t just for decking.

Building-Products.com

(ali@calredwood.org), the extensive redwood image library is in constant use. Examples include a number of images used by Big Creek Lumber Co. in the recent redesign of its corporate website, www.big-creek.com. “Without this fantastic resource, CRA member companies would have to devote significant financial resources to scout and photograph such projects,” said Big Creek president Janet Webb. Good old-fashioned newspaper ads are certainly a traditional way to reach local audiences, as well. For example, for several seasons Bruce Bauer Lumber & Supply, Mountain View, Ca., has successfully run co-op newspaper ads for redwood planter boxes with the CRA tagline “Redwood the Natural Choice.” Something as simple as raised garden beds can also be used as a valuable educational tool. Ashby Lumber, Concord, Ca., recently provided redwood for the “edible garden” at Valhalla Elementary School in Pleasant Hill, Ca. “Thanks to the generosity of CRA and Valhalla Dad’s Network, our students will not only be eating a more healthy diet, but are receiving a valuable lesson in the use of natural, sustainable products such as redwood,” said Valhalla principal Marji Calbeck. While planter boxes and raised garden beds can be very simple, the California Redwood Co. has introduced a line of high-end planters and Adirondack style furniture, available through its online store (www.californiaredwoodco.com). “The quality of materials and construction is far above that of typical wood patio furniture,” says CRC’s Kelly Lusa, marketing and product development. These beautiful planters and furniture were displayed at Sunset magazine’s Celebration Weekend June 2-3 in Menlo Park, Ca., and at the Humboldt Made Fair in Eureka, Ca., June 21-24. Two lucky PCBC attendees won CRC redwood planter boxes by stopping at the CRA booth and entering a raffle. Hopefully, you have gathered that the wheels never stop turning at CRA or its member mills when it comes to promoting this remarkable product. Pass the word that redwood has ramped up for 2012, and stay tuned for an expanded commitment to collaborative redwood marketing in 2013.

September 2012 The Merchant Magazine

11

PRODUCT Spotlight By Steve Gertner, Starborn Industries

Steel screws adapt to changes in wood decking

D

ECK FASTENERS have developed rapidly since the introduction of the first standard green deck screw in the 1990s. Although this type of deck screw was an improvement over the previous generation of galvanized wood screws that had been used by contractors for many years, it is remarkable how little this standard model has evolved. Instead, advances in the design of deck screws have been driven largely by developments in PVC and composite decking. Constant changes in the colors and technologies of PVC and composite decking have spurred a range of technical and aesthetic improvements in deck fasteners. In terms of color alone, the first color-matched Headcote deck fasteners were initially available in only five colors. Today, they come in almost 20 colors, in several different thread and head designs, and in both stainless and carbon steel. Almost every design advance was developed in response to changes in PVC and composite decking. Recently, however, increased availability of many different types of treated wood decking has focused renewed attention on the standard model deck screw. Many treated wood decks are still built with standard deck screws that are very similar to the screws first developed 20 years ago. However, increased variation in the appearance of pressure treated lumber, as well as higher expectations from deck fasteners based on improvements made to PVC and composite deck screws, has increased demand for better color matches and improved performance from standard deck screws. Pressure treated lumber varies greatly by region, in terms of wood species and pre-stained color options. Although it is typically more difficult to achieve a precise fastener color match with treated wood compared to PVC and composites (because of the natural variation of wood products, staining processes, and weathering conditions of the deck), there are now many more options for standard deck screw color matches. Green, gray, red and tan screws are all available on the market today. Choosing the right color match for pressure treated lumber depends on many factors. For instance, gray deck screws are popular in areas where treated wood decks are typically allowed to weather, especially coastal areas in the northeast U.S. In other areas, contractors and homeowners sometimes prefer screw colors that better match the original (and maintained) color of the treated lumber. Contractors using deck screws designed for treated wood are usually most interested in very high levels of reliability in terms of mechanical performance and corrosion resistance, as well as ease of use. While most standard deck

12

The Merchant Magazine September 2012

DECK SCREWS designed for treated wood, such as Starbornâ&#x20AC;&#x2122;s Deckfast Epoxy screws, stress reliability of performance and corrosion resistance, in addition to ease of use.

screws are capable of meeting basic performance criteria, in terms of reliability there is actually a wide range of difference between various screws on the market. First, lower quality screws are more likely to cam-out or even snap during installation. Screws held to higher quality standards for the dimensional specifications of the recess and torsional strength of the screws, and with additional design features like a reinforced countersinking head, will save contractors time in avoiding this basic type of failure. During the life of a deck, another area of concern is the adhesion of corrosion-resistant epoxy or ceramic coatings. If the coating does not adhere well during installation, the screw is unable to provide any corrosion resistance, which can lead to staining and ultimately failure of the fastener itself. Even if the screwâ&#x20AC;&#x2122;s coating is able to achieve good results in salt spray tests, in a real world application, the adhesion of the coating is actually more important. For ease of use, there are many features that contractors prefer, including square and star drive recesses, auger points (T-17 point) for quick start, and countersinking nibs for a clean and uniform appearance of the decking surface. These are just some of the features of the new standard deck screw. If treated decking continues to diversify and develop, the standard deck screw will have to continue to evolve at a much more rapid pace than it has in the past.

â&#x20AC;&#x201C; Steven Gertner is the marketing manager at Starborn Industries, Edison, N.J. Contact him at sgertner@ starbornindustries.com. Building-Products.com

FEATURE Story By Jeff Wagner, LP Building Products

Oriented for success OSB and the building industry

A

S KEY MATERIAL PROVIDERS for the building industry, OSB manufacturers have seen the effects of the countryâ&#x20AC;&#x2122;s economic conditions firsthand. Fortunately, the first half of 2012 has carried with it slow but persistent growth in the demand for OSB, thanks in part to the low inventory of new and existing homes. Although anticipated housing starts for the year are well below pre-recession averages, they are much more positive than the numbers from just a few years ago. Forecasters are calling for more growth by 2013. As the building industry slowly emerges from the bottom of this downturn, there is some light at the end of the tunnel. Although a revived housing market may present a new set of challenges, the opportunities for innovation and product development seen along the way are already creating a stronger, more diversified industry.

Opportunities for Innovation

All photos courtesy LP Building-Products.com

Engineered wood products, including OSB, bring flexibility to product development and innovation. With an intentional design and purposeful variation in properties, OSB products can be developed to provide solutions for specific construction challenges. As the pioneer in OSB, LP Building Products is among the producers committed to ongoing innovation in the design and application of OSB products. This means listening to builders, architects and engineers and working with these groups to create custom product solutions that meet their needs. New product developmentâ&#x20AC;&#x201D;such as the recently launched LP FlameBlock Fire-Rated

September 2012 The Merchant Magazine

13

OSB Sheathing and the growing use of LP TechShield Radiant Barrier— provides builders with more options when meeting construction challenges. As many segments of the building industry are navigating through the

proposed 2012 IECC energy code, LP stands by the importance and value of energy codes across North America. We also believe the homebuilder should have a variety of products at their disposal and have choices as to

OSB from Ainsworth is fed through a cutting machine in preparation for wall panel construction at JL Schwieters’ manufacturing facility in Hugo, Mn.

Full-Service Strategy Gives Dealer Edge

JL Schwieters Building Supply, Hugo, Mn., is more than just an LBM dealer. It’s a service provider whose custom packages from plates to peak are making life for builder customers a bit easier. “The thing that distinguishes us: we offer it, design it, and install it,” says Nathan Steere, sales and purchasing director. The dealer’s turnkey components division includes wall panel manufacturing services, with a team of skilled carpenters, a fleet of forklifts, and in-house crane service to design, fabricate, and install framing packages for single- and multi-family homes, hotels, and more. Under its NexStep System, JL Schwieters custom builds stairways, fireplace niches, archways, and other interior building components that span beyond the basic framework. The systems are delivered fully assembled, helping to eliminate jobsite errors and save builders time. For example, a complicated 10-hour fireplace buildout is reduced to just two hours. Along with time savings for the customer, the controlled production environment and captive workforce

14

mean higher quality, greater consistency, and increased efficiencies, while field-shop communication ensures products and practices are innovative and optimized. JL Schwieters uses 7/16- and 5/8inch 4x8, 4x9, and 4x10 OSB, primarily from Ainsworth Engineered, for the manufacture of its wall panels. The tapered-edge technology of Ainsworth’s pointSIX Durastrand subfloors eliminates the hassles of edge sanding. The durability and moisture tolerance of Ainsworth’s SteadiTred stair tread panels stand up to the rigors of the jobsite. “It really blends in well with our strategy that everything must be efficient to be effective,” Steere says. Its services are more in demand than ever due to the current state of the housing market. “Over the past six years, when prices have been depressed, many framers have vacated the industry and young people have been discouraged from desiring careers in carpentry and framing. It’s a serious issue,” says Steere. “So, pre-fabricated wall panels are becoming much more important because it means more homes can be built with fewer hours in the field.”

The Merchant Magazine September 2012

how to meet those codes. Many states are concerned about balancing the new codes with cost, structural requirements, and moisture prevention. Numerous states, such as Minnesota, have elected to amend the codes to meet their specific needs while others, like Georgia, have chosen to bypass the adoption of the 2012 IECC code entirely. For the OSB industry, the prescriptive requirements of insulated (foam) sheathing in the 2012 IECC code disadvantage our products. LP has been working alongside other manufacturers with the Coalition for Fair Energy Codes to help shape the future of energy codes and create alternative wall assemblies that meet the intent of the 2012 IECC energy codes while addressing state and industry concerns. The OSB industry has also found additional opportunities innovating building practices on the international front, particularly in South America. Because wood products are much more resilient under seismic conditions than the traditional masonry practices in this area, LP has seen success converting South American companies and governments to the use of wood for housing construction. Product innovation has gone beyond the housing segment as manufacturers continue to research and develop innovative OSB applications for the industrial arena, such as furniture and specialty products. The flexibility of engineered wood products allow the development of a panel with the customers’ end-use in mind, as was done with LP SuperStruct Furniture Panels. Organizations such as APA–The Engineered Wood Association, the American Wood Council, and WoodWorks are encouraging the use of wood in non-traditional applications. These efforts are also driving the diversification of OSB, as the industry discovers places to use wood where it hasn’t been historically.

Recovery Challenges

As the building industry emerges from the downturn, all channels will be faced with a unique set of challenges. For much of 2012, the market has been depressed. According to APA, the industry demand capacity ratios are in the 60% to 70% range. Several years ago LP, like many of our supply chain partners, started the long and Building-Products.com

OSB 2012

LOUISIANA-PACIFIC , Nashville, Tn., attributed strong sales of OSB from its 14 mills worldwide for driving the company’s total earnings up 18% in the second quarter. “Higher OSB prices and volume and continued volume growth in our siding business were the primary drivers for the improvement in our results,” said c.e.o. Curt Stevens. Sales for the company’s OSB mills in Chile and Brazil totaled $43 billion for the second quarter, an increase of 8%, “Going into the second half of the year, we remain cautiously optimistic,” said Stevens. “Though it appears that the general economy may be slowing, housing activity continues to improve.”

NORBORD, Toronto, Ont., also reported higher secondquarter sales for its 11 OSB mills—$272 million compared to $241 million in the same period last year. “We are finally seeing a more sustainable U.S. housing market recovery, and this is flowing through to our bottom line,” said c.e.o. Barrie Shineton.

WEYERHAEUSER, Federal Way, Wa., added new equipment to its OSB mill in Edson, Alb., and started producing energy-efficient radiant barrier sheathing at its OSB mill in Hudson Bay, Sask. The new machinery will produce drainage grooves on the company’s Edge Gold flooring panels. THE CONSTRUCTION industry can count on OSB manufacturers to continue to develop better-performing, more efficiently installed products.

painful task of right-sizing our operations and infrastructure to accommodate the depressed demand levels of the past six years. Through this process, our objective has been to balance our supply by region against the demand our customers have for our products. Market conditions suggest the revived industry may encounter shortages across the board from inventory to transportation. The logging infrastructure—including both the logs themselves and the trucks used to move them— has shrunk based on demand and has the potential for a slower comeback than the market itself. There is also a shortage of flatbed trucks across North America. As manufacturers start to ramp up production facilities to meet customer demand, there is a very real concern about having the trucking infrastructure to meet those needs. LP is aware of these challenges and is working with suppliers and customers to help mitigate them.

Looking to the Future

The building industry has gone through the toughest five years in its history, facing changes and adjusting operations as needed. But through product innovation, there have been bright points along the way. OSB’s place in the building products industry remains strong. As the market improves, competitive lessons learned in the downturn will provide a new emphasis on service to the customer and the end users’ needs for our products. – Jeff Wagner is the executive v.p.-OSB for LP Building Products, Nashville, Tn. Reach him via www.lpcorp.com. Building-Products.com

AINSWORTH, Vancouver, B.C., marked one year of no recordable injuries at its OSB mills in Grande Prairie, Alb., and Barwick, Ont. “Our philosophy here is that every employee needs to go home to their family safe and sound every day,” says Randy Johnson, site manager in Grande Prairie. “Safety isn’t a sometime thing; it has to be an all-the-time thing.” GEORGIA-PACIFIC continues operations at five OSB

mills in the Southeast.

HUBER ENGINEERED WOOD, Charlotte, N.C., introduced new ZIP System R sheathing, structural wall sheathing with continuous foam insulation. “We have enhanced our ZIP System sheathing with rigid foam insulation to eliminate the hassles of installing multiple systems on the jobsite,” said Brent Flotkoetter, product director of ZIP System. “This provides builders with five layers in one installation step.”

ROYOMARTIN, Alexandria, La., is moving into its fifth year of operations at its OSB facility in Oakdale, La. “Emphasis has been placed on translating our Eclipse radiant barrier product from a singular roof decking application to a wall sheathing application, which replaces traditional housewrap,” said Tony Rocha, senior field sales and business development representative.

TOLKO, Vernon, B.C., lost nearly a month of OSB production at its mill in Meadow Lake, Sask., in late June, due to severe storms. Power was not restored until July 16, and full production was restored 10 days later. LANGBOARD continues to produce OSB at its mill in

Quitman, Ga.

September 2012 The Merchant Magazine

15

INDUSTRY Trends By Chris Degnan, Weyerhaeuser

Enhancements to OSB products improve residential, light commerical construction

M

oriented strand board over plywood for its lower price. When it comes to selling OSB, though, it’s equally important to emphasize performance. As dealers know, competing on price alone can be a race to the bottom. Keeping and growing a customer base usually depends on showing value, not just the lowest price. ANY BUILDERS CHOOSE

Within the OSB market is a wide range of products—from commodity sheathing to specialty floor and roof panels. To provide builders with valued solutions for their panel needs, three attributes of high-performance products for the sales staff to keep in mind are: • water protection and warranties, • fastener templates, and

HIGH PERFORMANCE OSB panels help create quality floors.

16

The Merchant Magazine September 2012

• simplified construction features.

OSB manufacturers have focused on product formulations and features to better enable their panels to withstand moisture during and after construction. This is particularly true with OSB floor panels, for which edge sealants help protect against water

Water protection, warranties

All photos courtesy Weyerhaeuser Building-Products.com

intrusion to prevent edge swell. Such treatments help ensure that panels install flat and remain flat and smooth during and after construction. Manufacturers typically market such panels to stand apart from commodity OSB, such as a tint on the edges of panels to show they offer enhanced defense against moisture. Because preventing edge swell is vital for quality finished floors, manufacturers also are pioneering other ways to prevent water damage. For example, drainage grooves added to floor panels eliminate standing water

DRAINAGE GROOVES on OSB flooring panels help eliminate pooled water during constructon.

they believe the joist is and walk across the floor using a nail gun to rapidly attach the panel. It’s easy to veer off and end up with “shiners.” Snapping chalk lines is a good solution, but takes time. To make panel installation faster and easier, some OSB manufacturers include pre-printed templates that enable crews to follow a straight line and improve accuracy of fastener placement.

On many OSB floor panels, manufacturers now provide tongues and grooves. Panels with these profiles

Simplied construction

ADVANCED EDGE SEALS help prevent water intrusion in panels, reducing edge swell.

during rain storms, which saves builders the problems and costs of sweeping standing water off the floor or drilling drainage holes to let it through. A clear indicator of the improved performance of OSB panels is the enhanced warranties now available. Some manufacturers offer “no sand” guarantees for up to 200 days, which indicate their specialty panels can resist edge swell for more than half a year of exposure during construction. Additionally, panels also are available with 50-year limited warranties against delamination, providing the builder and homeowner the assurance of long-term performance. Builders know that reducing the risk of floor squeaks requires that nails or screws driven through floor panels attach securely to the underlying joists. Many eyeball a line where

Fastener templates

Building-Products.com

help speed construction and improve quality by creating a self-gapping fit. Crews don’t need to measure for a gap; instead, they slide the tongue and groove together. Ensuring an appropriate gap is necessary to prevent panels from buckling if they expand or contract from moisture. Another ease-of-use is how manufacturers load panels at the mill. Those that arrive at the jobsite bundled working side up make it simpler for crews to unload and install them, without the strain of flipping panels over. This can help speed construction and lessen fatigue, especially in cases where crews have to handle numerous panels. OSB panels can also provide builders a simple way to build greener. Manufacturers are able to produce OSB from quickly regenerating trees and with methods that use almost the entire log. Plus, for builders who want confirmation that the wood comes from sustainably managed forests, some OSB products carry third-party certifications, such as that of the Sustainable Forestry Initiative. – Chris Degnan is OSB strategic marketing manager for Weyerhaeuser, Federal Way, Wa. For more information, check www.woodbywy.com.

Radiant Barrier Sheathing Enhances Energy Efficiency

While manufacturers have often focused on floor panels as a key category for specialized OSB products, some are also offering enhanced roof panels—especially radiant barrier sheathing (RBS). RBS offers the same types of benefits as standard OSB roof sheathing, including being engineered to remain flat and resist buckling, cupping, warping and sagging. It installs the same as other roof panels, yet helps lower home energy use. These panels are foil laminated OSB roof sheathing that reflects 97% of the sun’s radiant energy. By blocking solar energy, RBS helps reduce heat build-up in attics so the home stays cooler. As a result, less energy is needed for air conditioning, which in turn can control costs for homeowners year after year.

RADIANT BARRIER SHEATHING Is a simple-to-install way to help keep homes cool in sunny climates.

September 2012 The Merchant Magazine

17

COMPETITIVE Intelligence By Carla Waldemar

Rebranding for the future

Y

the proverbial business choices: lead, follow or get out of the way. Not much of a dilemma for young Justin Ennis, whose father, Bruce, is president and c.e.o. of New Mexico’s Roswell and Artesia yards, recently rebranded as Builders Do it Center. “I’m a lead guy,” clarifies Justin, whose longer, more official title is corporate sales manager, adding “and I’m an optimist. Not much point in wasting your time and energy on being anything different,” he declares. And he’s reinventing the company while barely old enough to shave (he began working for his dad 12 years ago at age 14, before earning a college degree in Agricultural Economics, where he thought his future would lie before being bitten by the sawdust bug). “I fell in love with the industry,” he justifies his U-turn—“the kind of customers we serve, the building materials, the retail process—and the independence I’ve got to play entrepreneur: to build the business the way I want to.” Blame it on the DNA. He’s just like his dad before him—a general manager who bought out his boss in the late ’80s, driven by the urge to turn an illmanaged operation into a well-run company. Justin at the steering wheel brings not only a vision of where to take the company, but the business smarts to change with the changing times and grasp those opportunities for growth. Uniting the Roswell and Artesia OU ALL KNOW

18

stores, 40 miles apart, under one banner, along with remodeling and remerchandising them and refocusing their employees’ goals readies the operation for the future. Wisely, at the same time, Justin remains cognizant that each store operates in its own niche and demographic. “Roswell is a lumberyard with a hardware store, with 80% pro customers,” he explains, “while Artesia is more of a home center, with a 60/40 split.” And it’s Artesia that’s been better positioned to sustain the enterprise in this rocky economy, due to the community’s robust oil and gas resources,

which are still doing very, very well. “We’ve built the wood wallhead cellars for those operations,” Justin reports, “and our only frustration is that we’re not set up to do even more. Unlike our competitors, we decided to assemble them to order—and it’s worked out even better than I’d thought; we can actually make pretty decent money. “Roswell, definitely more of a pro store, was sailing along nicely” before the bust, supplying builders of the town’s McMansions. But when that niche dried up three years ago, Justin turned on the proverbial dime to where a new need was arising—production builders addressing the housing shortage of more modest homes a broader workforce could afford. “I reached out to the builders and asked them, ‘Try us! We’re smaller, more nimble. Our prices are competitive and, as added value, we’re next door,’” rather than simply a cog in the distant national wheel they’d been in the habit of using. In the same gutsy manner, Justinas-outside-salesman approached potential commercial clients—most recently winning the business for a new hotel going up. “We’ll stock roofing, lathe and plaster, shingles, sell them insulation, tons of drywall, and supply the framing, versus working with a national outfit three hours away. We’re very competitive and we’re just down the road.” He paints the big-picture outlook of Builders’ future: “Instead of bringing it in from Texas, we’ll use Roswell as a central hub and drive two hours out from

ROSWELL YARD has always catered primarily to professionals.

The Merchant Magazine September 2012

Building-Products.com

there” to serve the wider territory. “In a small production market, we’ll be a great market force, building big growth. (This is all a little different from five, 10 years ago for us,” he confides. “This”—pause for a ta-da—“is my baby!”) In similar seize-the-moment thinking, Roswell acquired Overhead Doors of Southeast New Mexico in 1997—a toogood-to-pass-up opportunity that presented itself when the prior owner couldn’t make a profit at it. “Now it’s 14% of our revenue,” Justin has won the right to brag. Then there’s RLC Supply & Logistics, another of Justin’s newly birthed offspring. “It’s a brand-new company with one employee.” (Guess who?) He’s got big plans for the fledgling venture. “We’ll relocate operations here in Roswell to serve the agricultural and oil and gas industries of Eastern New Mexico. It will allow us to hold inventory for the stores.” A new railroad spur for which he lobbied long and strong will speed this along. “By next year, we’ll develop a two-step business with vendor partners to distribute products—but not,” he’s quick to stress, “in competition with our builders. I’ve seen that happen, and we definitely don’t want to do the same.” Meanwhile—does this guy ever sleep?—Justin has laid the ground work for what he deems a necessary change in management style in the two stores. “I’m building the infrastructure so that the GMs will run each store as an independent business—make it their own. Formerly,” he says, “they sort of acted as supervisors but were not focused on P&Ls. It’s a mindset change, and my job is to help them— retrain them without finger-pointing or pulling hair—to focus more on product. I’ll give them the tools for what’s expected,” he promises. Backing all this change in the company’s rebranding is a new marketing strategy that’s also (surprise) Justin’s

MAKEOVER provides more, easier-to-find options for all customers. Building-Products.com

PARTNERS Justin Ennis (left), with father Bruce Ennis.

domain. “I’m turning our focus to radio advertising, to reach the pro who’s in his truck with the station on all day,” he explains. “But print, too: focusing on key categories, such as competitive pricing, building front-of-mind awareness, especially with our (loss-leading) power tools: three aisles of power tools to drive traffic, but then six aisles behind them.” A walk in the park, then? Not with heavy competition in the form of boxes, regional chains, and other independents. How does Builders claim to better all those boys? Well, “the answer depends on the customer, and the category,” Justin wisely explains. “We adapt to the customer’s needs. For the one-stepper, we stress the highest level of service. For the roofer, our inventory is our strong point— 20 colors versus 10 elsewhere. More options. And,” he adds, “I need to serve you— with competitive prices, service no one can match, and the quality and variety of materials absolutely unmatched.” (Remember that old threelegged stool adage? So does Justin. But today, he says, “two out of three will no longer do it. Try for all three.” And here’s another maxim for which he walks the talk: don’t be satisfied with the status quo. “If we had not moved from the custom builder, our future would look completely different”—and pretty cloudy. “I’m a ‘lead’ guy,” he restates. “Here, we’re performance-driven. We like to win, and that’s why people like to work for us. Bruce, as president, is the financial guy; he’s also handson, day to day. I undertake everything top-line—marketing and advertising. l oversee sales. I deal with the customers. And I’m optimistic.” Carla Waldemar cwaldemar@comcast.net September 2012 The Merchant Magazine

19

OLSEN On Sales By James Olsen

Losing the big one

W

IT HAPPENS slowly (“Everything is fine, we’re just slowing down a little”) or out of the blue (“We’ve decided to go another way”), losing an important account is a painful body blow to any salesperson. Elizabeth Kübler-Ross wrote On Death and Dying in 1969, which gives the five stages of grief we go through when we experience a loss. The book was inspired by her dying parents. The five stages are often applied to the grieving process in dying, but can be applied to any kind of loss, be it a break-up, divorce or losing an important account. The five stages are: • Denial. I can’t believe this is happening to me! • Anger. @%$!, this can’t be happening to me! • Bargaining. There must be something I can do!? • Depression. All is lost. • Acceptance. Okay, it’s happened. Now what? HETHER

Remember the Feeling

Acceptance is important, but as professional salespeople we must hang on to the feeling of the body blow and remember that we never want to feel that way again. How can we avoid ever having this feeling again? By never letting ourselves be lulled into thinking we don’t have to prospect. We must realize that no matter how well things are going, we are always in “rainy-day” mode as salespeople. We are skeptical. We do not trust that (our current) accounts will stay with us forever. Of course, we bring ongoing value and work with our accounts so that they do become lifetime customers, but we always keep a little bit of ourselves working for the time that they might not be. “Pray like only God can help you, but plant your garden.”

Self-Analysis

Denial kills sales careers. We need to spend some time thinking about our role in the loss. Some accounts are lost through no fault of our own, but sometimes it is something we have done or said that can be improved upon. If we don’t learn from our failures, we will make the same mistakes again.

She’s Dead to Me

Now forget the account. Take them out of your account box or Outlook file. Do not circle back with the buyer, even though they may be one of your friends. It is time to

20

The Merchant Magazine September 2012

move on, and frittering away at the edges of an account that has cut us loose will just delay our developing new accounts.

Action!

Important customers take time. They are also emotionally and mentally demanding. The good news is now we can apply our mind, time and emotion to developing new business. And we can. We are the ones who found, landed and developed that big account we just lost, remember? That means we already know how to do it. We didn’t get lucky. So let’s get to it. • First, we put the full-court-press on our ongoing account base. Go back and re-prospect every account we are currently working and see if there is anything we have missed or any other value we can bring. • Second, we network with all our current accounts, suppliers and friends to find new business. • Third, we commit to prospecting and do it every day.

No Comfort for Us

Humans like stability. Knowing what is going to happen is comforting. Marketing is built on it. Once people start to buy from or shop in a certain place, they are likely to continue to shop in that place. That is not the life of a salesperson (or sales organizations). Individually or as a company, if we make a list of our top ten customers five years ago we will see that very few of them make our top ten list today. The same will hold true five years in the future. It is sad to think that the customers we are so tight with today probably (again, we fight it with all we have, but…) won’t be our best customers in the future. We must realize that in reality we are The Big One in our sales careers. We must remember that we make accounts, they don’t make us. Losing the Big One hurts, but it is just a test of our commitment to ourselves and our careers in sales.

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

Let Nu Forest be Your Timber Supplier

Premium Kiln Dried Douglas Fir Timbers Any Size, Any Length

Corbels • Arches • S4S • Mill Rough • ReSawn

AccuRuff Re-Sawn Texture Circle Sawn Texture • Hand-Hewn Timbers

Milling Priming Inventory • Redwood

• Western Red Cedar (707) 433-3313 • FAX 707-431-2913

800-371-0637

www.nuforestproducts.com

Building-Products.com

September 2012 The Merchant Magazine

21

GREEN Retailing By Jay Tompt

Merchandising for the green-it-yourselfer

W

INDOW WINDOW INSERT

OW , WHAT A SUMMER .

According to the National Oceanic & Atmospheric Administration, July was the hottest month ever recorded in the continental U.S. Two-thirds of the country is experiencing drought. And then there was the “super derecho” storm that wreaked havoc across the Midwest and Mid-Atlantic. More than two million acres have burned and much of the West is still in its fire season. Add to this extensive crop damage and, all in all, it’s been a harsh summer. What will autumn bring? And winter? Perhaps property owners are thinking the same thing. My hunch is that we’re due for an uptick of d-i-y projects. If so, what can dealers do to prepare for what comes next? Certainly, preparations for extreme weather in areas where it might be expected would be sensible. Big rains and floods? Blizzards and ice storms? Or maybe this winter will cut us a break and be calm and mild. That would be nice. A little research can help you pick products so you can merchandise them in time to help your customers protect their property, whatever the weather has in store. But instead of focusing on the exterior, I’d like to turn our attention to the interior. How can we help do-it-yourselfers, or rather green-it-yourselfers, undertake projects this fall to make their homes warm, cozy, and comfortable for the winter months ahead? First, paint. This should be automatic, and presumably plans are already underway to merchandise your core zeroVOC paint brands, and a few niche products, too. If you’re still looking for a dependable line with a strong designer brand, Yolo Colorhouse (www.yolocolorhouse.com) is

22

The Merchant Magazine September 2012

worth evaluating. With people looking to simplify and probably planning to spend less during the holidays, perhaps positioning a warm, new interior as a part of familycentered holiday could be an effective message strategy. Second, draft busting or weatherproofing. It’s not as glamorous as adding a new designer color scheme to the living room, but eliminating drafts can improve thermal comfort in a home and save 10%-15% on heating requirements. Most dealers already carry enough of the product and materials to develop an effective end cap or floor display. Make sure expanding foam sealant and other caulks and sealants are zero-VOC and free of other chemicals of concern. Third, loft insulation. This is an easy weekend project for an experienced homeowner or handyperson to take on. Energy savings can be substantial, as well as improved thermal comfort winter and summer. It might be worth making those points in your promotions. Choose formaldehyde-free batting or loose fill. Better, choose products made from natural materials, such as those from Bonded Logic (www.bondedlogic.com). Fourth, windows. For homes with single pane windows, there are limited options for improving thermal performance, short of replacement with double or triple pane windows. Replacement is expensive and may be well worth the investment if projected energy savings are significant. But if outright replacement isn’t an option, there’s a new innovation that seems a perfect solution for homeowners. Indow Windows (www.indowwindows.com) has developed a window insert that comes close to doubling the R-value of a single pane window, and it reduces noise, too. It may not be available in all areas of the country, yet, but it’s definitely worth a look. Turning each of these projects into end caps or floor displays can boost sales and provide real value to your customers. You’ll feel good that no matter what the weather has in store and helped people feel a little warmer and safer, too. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com www.williamverde.com

Building-Products.com

MASTERING Leadership By Gregg Thompson

Coaching the uncoachable

S

ADLY, WHEN SPEAKING

on the topic of The Leader as Coach, the first question I usually hear is not, “What’s the most potent thing I can do to improve my effectiveness as a coach?” but rather, “What can I do with all the people on my team who are uncoachable?” The honest answer is one that most leaders don’t want to hear: “It’s not that they don’t want coaching; they just don’t want coaching from you!“ How do I know this to be true? I have asked the following question of thousands of leaders: “If you were unknowingly doing something that was significantly impeding your performance, something that was turning off those around you, something that would likely drive your career toward a

ditch, while someone that you really trusted and was completely committed to your success knew about this, would you want this person to come to you, privately, and share this information with you?” Virtually 100% of the audience raises their hand every time. Think about how directly this parallels coaching. If the vast majority of us would readily invite such tough-to-hear feedback, why would we ever resist coaching? The answer: It’s not the coaching we resist. We are simply very picky about those we will welcome into something as profoundly personal as coaching. Coaching requires a special relationship and an extraordinary conversation in which people explore ways they can create significant change in their work, careers or lives. At its best, it can only be described as intimate. The idea that some people are uncoachable emanates from the myth that coaching is something we do to others. It’s not. It’s a powerful performance and career changing process that we do with others. We may call ourselves coaches. We may offer ourselves as coaches. We may encourage others to avail themselves of our coaching. But we can’t unilaterally impose ourselves on others as coaches. No matter how senior we are, no matter how interpersonally skilled we are, no matter how experienced we are, we still have to earn the right to coach.

24

The Merchant Magazine September 2012

Unfortunately, the myth that coaching is something we do to others is propagated by a plethora of coaching books and training programs that naively assert that leaders simply need to engage in what really amounts to a series of interpersonal tricks designed to entice others into coaching conversations. State your intentions, express confidence in the person, listen actively, provide balanced feedback, cocreate an action plan… the list goes on. These are good leadership practices, but they will not get us invited into the coaching relationship. We don’t have to read the latest coaching best seller to get this. We know this from our own experiences with those who have been our own best coaches. When deciding if we will welcome someone as our coach, all we really want to know is the answer to three simple questions: 1. Do you really care about me? (Are you committed to my success?) 2. Can I trust you? (Will you tell me the truth?) 3. Do you have something of value for me? (Will you share your best to help me become my best?) Great coaching often involves exposing our most treasured aspirations, exploring the scary territory of unfulfilled expectations, claiming all of the talents we have kept hidden, owning up to the ways we are selling ourselves short, making bold new promises to ourselves, charting risky new courses of action…these are not things we will do with just anyone. These are things we will only do with someone who we believe truly cares about us, is trustworthy, and has something important to offer. Have you seen the light? Now the hard part is figuring out what you can do to engage with those you previously considered uncoachable. Here’s a suggestion: Make sure you have a positive response to the three questions above and then speak to each of your “uncoachables,” let them know you would be honored to serve as their coach, and ask them what you need to do to earn the right to do so. This will likely be one of the most difficult things you will ever do as a leader…and the most valuable!

Gregg Thompson Bluepoint Leadership Development (513) 683-4702 greggthompson@bluepointleadership.com

Building-Products.com

New Owner Rescues Mill Valley Lumber

Restoration expert Matt Mathews has purchased Mill Valley Lumber, Mill Valley, Ca., and vowed to continue operating the 120-year-old business “the way it is.” Previous owners Tom, Dan and Tony Cerri said the business had been losing money and were forced to put it up for sale (see July, page 18). They received several offers for the property, which is zoned for multifamily residential, although it’s been a lumberyard since 1892. Mathews, 56, is a Mill Valley local

who restores old buildings for a living. He’s been a Mill Valley Lumber customer for 20 years, restoring his own Victorian home with materials from the firm. He plans to team up with outside operators to handle the lumber and hardware operations. He will also rent out buildings on the property to other home improvement tradesmen, in addition to the cabinet shop and kitchen designer already leasing space on site.

DEALER Briefs

Healdsburg Lumber True Value, Healdsburg, Ca., held a grand

reopening Aug. 3-4 to celebrate its extensive remodel.

Caruthers Lumber Co. , Caruthers, Ca., has been placed up for sale. Founded in 1910, the business operates from a 7,588-sq. ft. building with 2,305-sq. ft. covered drive-thru storage on 1.21 acres.

Orchard Supply Hardware, San Jose, Ca., opened a new 50,000sq. ft. store Sept. 1 in Torrance, Ca. (Fabrizo Villalobos, store mgr.) OSH also received planning commission approval to add a 40,000-sq. ft. nursery to the front of its store in Sonora, Ca.

DeCou Lumber , Atascadero, Ca., has closed its doors after 75 years of business.

Lowe’s held an Aug. 16 grand opening for its new store in Silverthorne, Co. (Doug Cousino, store mgr.).

Dunn Lumber, Seattle, Wa., is now stocking a full line of Maze Nails’ Made-in-the-U.S.A. specialty nails at its 10 stores.

8k_bZ M_j^ Ekh Ijh[d]j^" 8k_bZ M_j^ Ekh Ijh[d]j^" 9ekdj Ed Ekh <_h[ H[i_ijWdY[ 9ekdj Ed Ekh <_h[ H[i_ijWdY[

BF <bWc[8beYa <_h[#HWj[Z EI8 I^[Wj^_d] BF <bWc[8beYa <_h[#HWj[Z EI8 I^[Wj^_d] ® ® ™™ LP FlameBlock Fire-Rated OSB Sheathing offers you thethe best of of both worlds—impressive structural strength LP FlameBlock Fire-Rated OSB Sheathing offers you best both worlds—impressive structural strength ® coating and fire resistance. Created byby applying a patented, non-combustible Pyrotite ® coating andremarkable remarkableburn-through burn-through fire resistance. Created applying a patented, non-combustible Pyrotite ® ® totoLP Sheathing is is anan ICC certified (ESR-1365), PS2-rated structural sheathing with LPOSB OSBpanels, panels,LP LPFlameBlock FlameBlock Sheathing ICC certified (ESR-1365), PS2-rated structural sheathing with a aClass It It provides extended burn-through resistance, delivering a 20-minute ClassAAFlame FlameSpread SpreadRating. Rating. provides extended burn-through resistance, delivering a 20-minute thermal It’s durable onon the jobjob site, easy to to work with, and is Exposure-1 rated thermalbarrier barrier(ASTM (ASTME119). E119). It’s durable the site, easy work with, and is Exposure-1 rated totowithstand construction delays. LPLP FlameBlock Sheathing is cost effective withstandrain rainduring duringnormal normal construction delays. FlameBlock Sheathing is cost effective and thicknesses and lengths, including Struc-1. And from an an andavailable availableinina avariety varietyofofPS2-rated PS2-rated thicknesses and lengths, including Struc-1. And from environmental contains nono hazardous chemicals. Backed byby a 20-Year Transferable environmentalperspective, perspective,it it contains hazardous chemicals. Backed a 20-Year Transferable Limited Sheathing is is thethe panel to to count onon when every minute matters. LimitedWarranty, Warranty,LP LPFlameBlock FlameBlock Sheathing panel count when every minute matters.

For LP FlameBlock Fire-Rated Sheathing, callcall LPLP Building Products at 1-888-820-0325. Formore moreinformation informationonon LP FlameBlock Fire-Rated Sheathing, Building Products at 1-888-820-0325.

||

||

||

| |

| |

OSB SmartSide® SolidStart® TopNotch® TechShield® CanExel® OSB SmartSide® SolidStart® TopNotch® TechShield® CanExel®

| |

LPCorp.com/FlameBlock LPCorp.com/FlameBlock

Habitat for Humanity is relocating its 2,000-sq. ft. Restore discount LBM outlet in Breckenridge, Co., to a 4,000-sq. ft. building in Silverthorne, Co. On Aug. 18, Habitat held a grand opening for its new ReStore in Santa Cruz, Ca. (Mark Burden and Monique Bourin, co-mgrs.). The space is 6,000 sq. ft., with room to expand to 17,000 sq. ft.

Anniversaries: White Brothers Mill , Oakland, Ca., 140th … Bauman’s Ace Hardware , Riverside, Ca., 105th … James Hardware, La Habra, Ca., 65th … Keene’s Hardware, Oxnard, Ca., 50th … M&S Building Supply & Home Center, Monterey, Ca., 50th … Bayside Building Materials, San Mateo, Ca., 45th … Redding Lumber Transport, Redding, Ca., 40th …

© 2010 Louisiana-Pacific Corporation. All rights reserved. Pyrotite is a registered trademark of Barrier Technology Corp. © other 2010 Louisiana-Pacific Corporation. All rights reserved. Pyrotite is a registered trademark of Barrier Technology Corp. All trademarks are owned by Louisiana-Pacific Corporation. All other trademarks are owned by Louisiana-Pacific Corporation.

26

The Merchant Magazine September 2012

Building-Products.com

SUPPLIER Briefs

Hardwoods Inc. will reopen a branch in Sacramento,

Ca., this fall.

Johns Manville , Denver, Co., has purchased the entirety of Industrial Insulation Group, Brunswick, Ga., from its joint venture partner The Calsilite Group.

Weyerhaeuser auctioned off its shuttered mill site in Dallas, Or., and EWP plant in Chavies, Ky. The sales included land, buildings, and equipment.

Columbia Forest Products, Greensboro, N.C., will invest $9 million upgrading its Boardman, Or., sawmill to supply core veneer cross-bands to its plywood mill in Klamath Falls, Or. (see Aug., p. 23).

Quality Cabinet & Fixture Co., San Diego, Ca., and Quality Cabinets de Mexico S. de R.L. de C.V., have been acquired by Glenn Rieder Inc., Milwaukee, Wi. its majority owned subsidiary,

Wholesale Wood Products, Dothan, Al., is now distributing redwood products from Redwood Empire , Cloverdale, Ca., to dealers in Tennessee, Mississippi, Alabama, Georgia and Florida. BlueLinx renewed its Forest Stewardship Council chain-of-custody certification for another 10 years from the Rainforest Alliance. The distributor has been

FSC certified since 2007.

Waldun Forest Productsâ&#x20AC;&#x2122; western red cedar mill in Ruskin, B.C., was destroyed by an early morning fire Aug. 26. The cause is under investigation.

SOUTHERN CALIFORNIA Hoo-Hoo Club members Mike Nicholson and David Tait presented a check for $10,000 to the City of Hope and the Wounded Warrior Project during the groupâ&#x20AC;&#x2122;s Aug. 15 meeting in San Dimas, Ca. The donation represents the proceeds from the Don Gregson Memorial Tournament in May. During the meeting, which was attended by international Hoo-Hoo president Ron Gattone from Australia, the club inducted four new members: John Assman, Roseburg Forest Products; Dallas Schooner, PrimeSource; John Pasqualetto, Jones Wholesale, and Sergio Tellias, Nichols Lumber. Building-Products.com

September 2012 The Merchant Magazine

27

MOVERS & Shakers

Jim Basler, western regional mgr., Osmose Inc., Woodland, Wa., has retired after 35 years with the company. Darin Coder, ex-ProBuild, has been named chief financial officer for Orepac Building Products, Wilsonville, Or. Tom Rood, exMoulding & Millwork, is a new Orepac account mgr. in Aurora, Co. Ben Philan, ex-International Wood Products, and Geoff Richter, exTrusJoist Commercial, are new to sales at Capital Lumber, Portland, Or. Mike Catalino has resigned from Foxworth-Galbraith Lumber, Las Cruces, N.M., to join BMHC/BMC West, as market mgr. for the El Paso, Tx., area. Dan Hutchison has been named v.p.operations, wood products at Boise Cascade, Boise, Id., where he will also have responsibility for the Inland region. Denny Huston is now v.p.-sales & marketing, engineered wood products, and John Sahlberg is senior v.p.-human resources and general counsel.

28

Garry Tabor, ex-Heico, has been named executive v.p. of Associated Building Material Distributors Inc., Portland, Or. He is based in El Dorado Hills, Ca. Alicia Beltran is new to the sales team at Yakama Forest Products, White Swan, Wa. Mark Wiseman, ex-BlueLinx, has joined Huttig Building Products, Seattle, Wa., as territory mgr. Bill Jacobs, ex-Foxworth-Galbraith, has returned to Weyerhaeuser, Denver, Co., in commercial sales. Blake Laidlaw is now business logistics mgr. in Federal Way,Wa. Jay Bishop, ex-OrePac, is new to panel sales at Taiga Building Products, Rocklin, Ca. Bill Fitzgerald, ex-Austin Hardwoods, is now selling for Peterman Lumber, Fontana, Ca. Jose Ortiz, ex-BlueLinx, has rejoined Foxworth-Galbraith Lumber, as regional v.p. for the Las Cruces, N.M., area. David Miles, ex-Coos Head Forest Products, has joined Conrad Forest Products, North Bend, Or.

The Merchant Magazine September 2012

Paul Walters, ex-Lifetime Lumber, is now Northern California territory mgr. for IKO Industries. He is based in Auburn, Ca. Brian Jones has returned to the sales team at D.R. Johnson Lumber, Riddle, Or. Shawn Nolan is now plant mgr. at Pacific States Treating, Weed, Ca. Deirdre Dawson has been named v.p./associate general counsel at Orchard Supply Hardware, San Jose, Ca. D.J. Donaldson, ex-Home Depot, has joined the outside sales force at ProBuild, Littleton, Co. Josh Slingerland, ex-Quikrete, is now handling outside sales in northern Utah for PrimeSource Building Products, Salt Lake City, Ut. Mark Kollias is a new national accounts rep for James Hardie Building Products, Seattle, Wa. Tim Case, ex-OneStop Windows & Doors, has joined Plygem Building Products, as territory sales rep for the San Diego, Ca., area. Joe Cartier is new to sales at Window & Door Store, Prescott, Az. Gary Lane has been named director of product development for PrimeLine Products, Redlands, Ca.

Building-Products.com

Derek Thorson, ex-Lowe’s, is a new national accounts outside sales rep for American Building Supply, Phoenix, Az. Phil Rousculp, ex-Fenestra Window & Door, has joined the sales team at Dimensional Millwork of Arizona, Mesa, Az. John Greiwe has joined Deceuninck North America, Monroe, Oh., as director-commercial markets development. Roy Smith, ex-Warehouse Solutions, has been appointed material handling sales mgr. for Hawthorne Lift, Fontana, Ca. Rick Eng has been named v.p.finance & chief financial officer for Ainsworth Lumber Co. Ltd., Vancouver, B.C. Don Demons has been promoted to president of Western Forest Products, Vancouver, B.C. Keith Mullens is the new sales mgr. at Wynndel Lumber Sales, Wynndel, B.C. James S. Andrasick, ex-Matson Navigation, has been elected to the board of Simpson Strong-Tie parent Simpson Manufacturing Co., Pleasanton, Ca. Tom Lindquist, chief operating officer, Plum Creek, Seattle, Wa., has been appointed to the American Forest Foundation’s board of trustees. Lou Pole has been named director of the legal department at MungusFungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

www.Roseburg.com

Engineered Wood Products

Quality Engineered Wood Products for today’s builder® Lyle Lee has been building custom homes for over 20 years. Here is what he has to say about Roseburg’s Engineered Wood Products. “When building a quality home, it’s important for all the framing materials to match. In other words come together as specified in the design plans. If the framing is off by even a ¼ of an inch, it can cost me thousands of dollars in time and materials. I find Roseburg’s RFPI®-Joist and RigidLam® LVL to be very consistent in width and depth. When I use Roseburg’s RFPI®-Joist, my floors are more level, stiffer and truer, making my job much easier. This home is 6,000 square feet so I used I Joist and LVL from several different units and the manufacturing consistency was exactly the same. If you want to maximize your profit, I would recommend using Roseburg’s Engineered Wood Products”. Lyle Lee L. Lee Building Company

OLD TIME LUMBERMEN’S BBQ Aug. 5 in Healdsburg, Ca., honored Lumber Person of the Year Bruce Burton (right), co-owner, Willits Redwood, Willits, Ca. Roger Burch (left), president of Redwood Empire, Cloverdale, Ca., presented the award. Building-Products.com

TF 800-245-1115 Engineered Wood Products | Real Wood Siding | Softwood Plywood | Lumber RFPI®, RigidLam®, RigidRim® and Quality Engineered Wood Products for today’s builder® are registered trademarks of Roseburg Forest Products, Roseburg, Oregon

September 2012 The Merchant Magazine

29

California Floats Lumber Tax

California legislators are considering a bill that would impose a 1% tax on all lumber sold in California, generating about $30 million annually for a new Timber Regulation and Forest Restoration Fund. Some timber firms support Assembly Bill 1492 because it would shift the costs of regulatory fees they currently pay to consumers and would limit wildfire liability damages in cases occurring after passage of the bill. However, the Lumber Association of California & Nevada is against the proposed legislation, arguing: (1) There is no valid data on the amount of tax to be collected. The state cannot determine the amount of tax to be collected because it has no figures on the amount of lumber sold in the state.

(2) There is no valid data on the actual costs of the various state agencies involved in monitoring and reviewing timber harvest plans. The claimed costs of the various state agencies involved are unsubstantiated

30

and must be independently verified.

(3) The costs to implement an additional sales tax on selected items has not been considered or analyzed. Nor have the technical challenges of reconfiguring computer systems to access the tax been considered.

Northern California Dealer Works to Sell Lumber Online

Ukiah, Ca.-based reclaimed woods specialist North Cal Wood Products has launched a new online lumber store, www.youclickitweshipit.com, as well as a national marketing campaign to educate consumers on the advantages of shopping online for lumber products. “It’s an online world and we have to be able to serve customers on their terms,” said Tony Fernandez, director of sales and operations. “In many cases, that means being able to provide full service online.” The new website allows homeowners, contractors, and other clients to browse the company’s wood products online, select their preferences, place

The Merchant Magazine September 2012

their orders, and have their selections shipped directly to them—all without having to pick up the phone or send a fax. “The idea is for the independent contractor that’s out in Wisconsin on the jobsite, trying to find studs, framing, siding, or flooring, to get online on his laptop or smartphone, check out our inventory, read a product review, and place an order,” said Fernandez. “With just a few clicks he can get it shipped directly to the jobsite.” Fernandez foresees a time when most of the company’s customers will shop and order online. “The online store isn’t a big business right now, but it’s growing and customers are responding very favorably to it,” he said. “We expect business to grow further this year as we roll out our You Click, We Ship It campaign.”

FSC Expands Operations

The Forest Stewardship Council will host its first annual southeast regional conference on Oct. 24 at Home Depot’s corporate headquarters in Atlanta, Ga. Attendees will include regional

Building-Products.com

stakeholders who will address opportunities and challenges in building the marketplace for FSC-certified products in the Southeast. At its headquarters in Minneapolis, Mn., FSC-US welcomed Karin Meier as development manager and Amelia Harris as a program manager. Effective Oct. 1, Kim Carstensen will be director general of the organization’s international board of directors, succeeding Andre de Freitas, who has led FSC International for the past five years. Carstensen previously served 20 years with the World Wildlife Fund.

Idaho Forest Group to Expand Chilco Operations

Idaho Forest Group, Coeur d’Alene, Id., received permission from Kootenai County commissioners to expand its milling operations in Athol, Id., which process logs from North Idaho and Washington. IFG will expand the 251.6-acre site by another 46.5 acres to gain space for additional lumber storage. The company also plans to construct a 130-ft. portal crane and create separate spaces for truck scales, truck tarping, and turnaround space that will relieve traffic congestion in the yard. To mitigate noise concerns, a vegetative buffer will be installed on top of an existing berm. “It’s weighing building economic prosperity versus the needs of local residents,” said commissioner Dan Green of the proposed plans.

Alaska Mill Adds Showroom

Icy Straits Lumber & Milling Co., Hoonah, Ak., opened a new showroom in Juneau, Ak., this summer, to showcase the company’s custom products made from wood harvested from the Tongass National Forest. “A foothold in Juneau should open up new markets to us,” said owner Wes Tyler, who purchased the company with his wife, Susan, in 2003. “People will get to see the products and get to know what we can offer.” Currently, the showroom is open by appointment only, but Tyler hopes to eventually to have it staffed during regular business hours. The showroom is stocked with samples of beams, crown moulding, decking, siding, paneling, chairs, tables and mantles made from Sitka spruce, Alaska yellow cedar, western red cedar, and western hemlock. Complete home and cabin packages are available. Building-Products.com

September 2012 The Merchant Magazine

31

Merger on Track for Short-Line Railroads

Genesee & Wyoming, Greenwich, Ct., agreed to acquire RailAmerica, Jacksonville, Fl., for $1.39 billion, combining North America’s two largest short-line and regional rail operators.

When the deal closes in the fourth quarter, GWI will operate 108 railroads covering over 12,000 miles of track in 37 states, plus Canada, the Netherlands, Australia and Belgium. “The acquisition of RailAmerica

by GWI is a straightforward combination of two organizations with overlapping holding company structures and complementary railroad geographies,” said GWI c.e.o. Jack Hellmann. “The synergies between the companies are expected to be significant.”

Photos by Walter Ralston

LA HARDWOODS

LOS ANGELES Hardwood Lumberman’s Club enjoyed its second barbecue of the summer, this time Aug. 11 at the Yorba Linda, Ca., home of Jim and Tracy Gaither, Specialized Milling, Fontana, Ca. [1] Jim & Tracy Gaither, Dayna & Alan Arbiso. [2] Carl & Anellina Henoch, Dale Bohannon. [3] Walter & Joyce Ralston, Kit Rohm, Dan Bohannon. [4] Charley Bohnhoff, Dian & Walt Maas. [5] Randy & Marty Porter, Kevin Tranter.

32

The Merchant Magazine September 2012

Building-Products.com

Malheur To Close Sawmill

Malheur Lumber Co., John Day, Or., has announced that it will shut down its sawmill and related departments Nov. 1 after 75 years of continuous operation. The biomass facility—including pellet and wood brick manufacturing, chipper and log shaver—will continue to operate. “We regret this action, but find we can no longer sustain our sawmill and planing operations without sufficient local timber from adjacent national forests,” said Bruce Daucsavage, president of parent Ochoco Lumber, Prineville, Or. “We are infinitely saddened and frustrated by the circumstances that bring us to this decision.”

properties. SFRP is owned by Randy and Deborah Stemper, who also operate the two building supply yards.

Fire Levels Maryʼs River Mill

Mary’s River Lumber, Corvallis, Or., lost its Montesano, Wa., sawmill in an Aug. 25 fire. The planer, moulder, kilns, and inventory were not damaged, but the building was a complete loss. “It’s an absolutely sick feeling— this is a big part of our lives,” said general manager Terry Smith. “We spend a lot of time here. It’s virtually

watching part of your home burn.” Firefighters managed to keep the fire confined to the sawmill building, leaving other portions of the operation—including the shipping department—untouched. “We’ll figure it out, and we’ll go on and we’ll fix it,” said Smith. In the meantime, the loss of production will be made up at the company’s other locations in Elma, Wa., and Philomath, Or. Established in 1974, Mary’s River specializes in western red cedar. No injuries were reported in the blaze.

Setzer Refocuses on MDF

Setzer Forest Products has mothballed its pine moulding facility in Oroville, Ca., while increasing production by one-third at its MDF moulding plant in Sacramento, Ca. Setzer stopped accepting orders for pine mouldings August 15. Setzer has been producing millwork and other wood products since 1927.

Depot Adds Western Support Center for Online Sales

Home Depot has opened a customer service and sales center in Ogden, Ut., to support its online business in the West. The 85,000-sq. ft. center currently employs more than 200, but intends to grow to nearly 700 employees by 2015. A typical Home Depot stocks 30,000 to 40,000 products. Online customers have access to 300,000 products. Previously, the retailer’s only online customer service center was near its Atlanta, Ga., headquarters. “The Ogden center will help us expand that customer support, not only with more people, but also give a West Coast presence in that time zone,” said spokesman Stephen Holmes.

Bankruptcy Filing Protects Two Yards from Foreclosure

SFRP Group LLC—the company that leases the land to Astoria Builders Supply Co., Astoria, Or., and Gearhart Builders Supply Co., Gearhart, Or.—has filed to reorganize under Chapter 11 bankruptcy protection, averting foreclosure on the two Building-Products.com

September 2012 The Merchant Magazine

33

Fencing Demand Growing 7.1% Per Year

Demand for fencing in the U.S. is forecast to grow 7.1% annually to $8.3 billion in 2016, totaling 835 million linear ft., according to a new study by Freedonia Group. Growth will be driven by an expected rebound in building construction from a depressed 2011 base. In addition, advances will be supported by rising use of high-value fencing materials, such as ornamental metal and plastic and composite lumber. Consumers will opt for these materials

because of their favorable aesthetic qualities and performance properties. The residential market accounted for the largest share of fencing demand in 2011 and will remain the market leader in 2016. Demand for fencing in residential building construction applications is forecast to increase at an above-average pace through 2016, fueled by a rebound in housing completions. Further growth will be supported by the large residential replacement segment, which will

benefit from a recovery in improvement and repair spending. Nonresidential fencing demand will see strong gains through 2016. Increasing nonresidential building construction—particularly in the office and commercial segment—will stimulate demand. Fences are often installed around nonresidential structures to provide security barriers and to demarcate property lines. Fencing demand in the nonbuilding and agricultural markets will rise modestly through 2016. Gains will be moderated by the prevalence of lowcost materials, such as wood and metal wire, in these markets. Among fencing materials, plastic and composite lumber is expected to see the most rapid growth in demand through 2016. Plastic and composite materials often resemble natural wood, but have minimal maintenance needs and longer lifespans than wood fencing. Plastic and composite lumber is also promoted as being “green” because it is often made from recycled materials, such as reclaimed plastics and wood scraps. In 2011, metal fencing accounted for the largest share of the fencing market in both dollar value and linear ft. Chain link fencing is often used to mark boundaries and secure properties, while ornamental metal fencing is erected around houses and businesses to form an aesthetically pleasing barrier. Demand for metal fencing will increase in line with the industry average through 2016, with ornamental fencing fortifying gains. In addition to the rebound in housing activity, some business owners will opt for ornamental fencing to serve as an aesthetically pleasing alternative to chain link and wire fencing. Wood fencing demand will advance at a below-average pace

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) 451-0425

34

The Merchant Magazine September 2012

Building-Products.com

through 2016. Wood is most often utilized in the residential market because of its low cost and favorable aesthetics. However, demand for wood fencing will be checked by competition from plastic and composite fencing. Concrete and other fencing materials will see solid gains through 2016. Demand for concrete fences will be supported by strong interest in concrete and other materials for use in privacy fences. Moreover, concrete fencing offers a high degree of protection from damages caused by impacts and explosives.

Barr Down to Last Yard

Barr Lumber, San Bernardino, Ca., has closed its stores in West Covina and Yucca Valley, Ca., reducing the chain to a single yard in Twentynine Palms, Ca. Kyle Nicholson, a professional liquidator who helped empty the Yucca Valley store at the end of August, said the Twentynine Palms branch benefits from being close to a Marine Corps base, but far from big box competition. “Being isolated is sometimes a good thing,” Nicholson said. “We’re in the process of keeping the Barr name going and the one store going.” Barr purchased the West Covina yard from Pick’s Building Materials in 2008.

egories, more “lifestyle vignettes” to illustrate design and decorating ideas, and upgraded customer service areas for both consumers and home improvement professionals.

Siding, Trim to Post Big Gains

Demand for residential siding and trim will reach $9.1 billion by 2014 from $7.2 billion in 2011, according to a new study by Principia. Siding demand will increase 7% from 58 million squares valued at $5.8 billion in 2011 to 71.6 million squares with a factory gate value of $7.2 billion in 2014, based on project-

ed unit shipments. Exterior trim will increase 10% from 1.7 million linear ft. in 2011 to 2.3 million linear ft. in 2014. “The residential siding and trim market is expected to see steady growth over the next few years due to the increasing need for re-siding and repair along with increased activity in new construction,” said Ken Jacobson, partner at Principia. “Manufacturers are improving existing products so that they are more cost effective, easier to install, and align with existing and upcoming codes and standards.”

Depot Closes Oldest Store in West, Readies Replacement

In Fullerton, Ca., Home Depot closed the oldest store in its western division, liquidated all the old merchandise, and will open in a new building, with new merchandise, just down the street. Mike Astorino, district manager for Home Depot, said the goal was to give Fullerton a brand new store—the old one was 27 years old. At 150,000 sq. ft., the new store is about 20,000 sq. ft. smaller than the old store, but will have a larger lawn and garden section, plus an expanded appliance showroom with a wider selection of merchandise. “We are always looking for ways to improve the shopping experience for customers,” said Craig Menear, executive vice president for merchandising for Home Depot. The old store closed Aug. 22; the new one is to open Oct. 23. Earlier this year, Depot opened its first western region superstore in Anaheim Hills, Ca., its 205,000 sq. ft. packed with wider selection in all catBuilding-Products.com

September 2012 The Merchant Magazine

35

FAMILY Business By James Olan Hutcheson

A transfer tsunami

O

20 years, nearly $4.8 trillion of wealth is set to be transferred to the next generation of heirs. Much of that wealth will consist of the assets of family businesses, about 40% of which are due to hand the reins to the next generation during the current decade alone. However, most family businesses are not adequately prepared to handle this tidal-wave transfer of wealth. In fact, the majority of family businesses have made few or no provisions for turning the business over to the next generation. In one sense, that’s not surprising. Few vibrant and active family leaders find it easy to envision their own retirement or, worse, demise. Another problem is that the challenges of family-business succession tend to be exceedingly thorny. It’s relatively easy for business leaders to accept their impermanence to the extent of purchasing a life insurance policy. It’s much more difficult to engage in the sort of personal soul-searching, family dialogue, and complex financial planning required to really prepare for succession. The job, however, can be done. Millions of family businesses have successfully transitioned ownership from one generation to the next and the journey is well worn, with proven techniques and experts ready to help VER THE NEXT

36

The Merchant Magazine September 2012

at every stage. Many of these experts are the same attorneys, accountants, family business consultants, financial planners, and others who may already advise you and your company. Many of the actions required by financial planning for succession are ones that you should be doing already, even if today succession seems to be no more than a fuzzy image on a far horizon.

Set a specific goal.

At the top of the “to do” list is to get straight about the purpose of the business with regard to the family and succession. Deciding whether you hope to provide lifetime employment for as many family members as possible, maximize profits to uninvolved family shareholders, or pursue some other goal is essential to charting a smooth course. What your goals are is not as important as selecting them through discussions with other family and business members, and communicating them to all interested parties. Remember, people will tend to support what they help to create. You’ll likely find some difference in the goals of the current business leadership and the next-generation heirs. For instance, the current c.e.o. may want to allocate significant money to invest in a new venture or Building-Products.com

buy new equipment, while the heirs may believe that available funds should funnel to shareholders. Even if both generation’s plans are identical, now is the time to get the agendas out in the open and make sure you’re all sailing in the same direction.

Get a professional valuation of your business.

The techniques for planning a transfer are many, sometimes complicated, and often only applicable to certain specific situations. However, all planning will call for an accurate and current valuation of the family business to move forward. One of your first moves should be to get a valuation of the enterprise by an experienced business appraiser with good credentials.

Determine how to pay estate taxes.

Once the value of the family enterprise is documented, you can address specific methods for minimizing the trauma of transfer. One issue that will, no doubt, surface immediately is to find a way to pay estate taxes. The current unified tax credit allows for you to pass on $5 million in assets to heirs without paying tax. Transferring any business valued at more than the allowance will likely trigger a graduated federal tax that can prove debilitating. It’s a nice problem to have, but dealing with estates over the $5 million allowance can sometimes be surprisingly simple, if planned for properly. For instance, you may be able to merely defer the payment of any estate taxes for up to 14 years, paying interest to the Internal Revenue Service periodically and avoiding the kind of lump-sum payment that is likely to exceed any business’ ability to pay. Buy/sell agreements funded with life insurance offer another possibility. You’ll need to work with a certified public accountant to come up with your own customized strategy.

pre- and post-retirement lifestyle expenses are two ways to overcome this common obstacle. Succession is accurately described as the most important event in the life of a family business, as it is for the family in the business. Financial planning, however, is not the only hurdle. You must also prepare future leaders with training, experience, and exposure to life at the top. No plan that attempts to anticipate the future is perfect. Tax laws change, human frailty shows itself, and every business transfer presents unique risks. But simply attempting in good faith and due diligence to plan for a transfer will go a long way toward improving the outcome. – James Olan Hutcheson is managing partner and founder of ReGeneration Partners, a family business consulting firm headquartered in Dallas, Tx. He can be reached at (800) 406-1112 or www.regeneration-partners.com. Reprinted with permission of ReGeneration Partners. No portion of this article may be reproduced without its permission.

Plan for retirement now.

One common error is for the current leader to neglect to provide for adequate income and financial security during his or her own retirement. This may result in the c.e.o. being forced to continue working for the business long after he or she is effective, just to draw a salary. Setting up a retirement savings plan and trimming Building-Products.com

VERSATEX TRIMBOARD has launched a new mobile website at www.versatexpert.com, which includes a contractor handbook, catalog information, and 10 new installation videos. September 2012 The Merchant Magazine

37

NEW Products

Reliable Roof Repairs Woodgrain Coating

Duckback’s Wood Grain coating for composite and fiber cement siding and trim offers the look of natural wood, plus long-lasting protection. To ensure proper application, the coating is applied in a factory setting.

SUPERDECK.COM (800) 825-5382

OMG Roofing Products now offers 12.5” wide EverSealTape for long-lasting, watertight repairs. Each 50’ roll is packed in one- or two-pack master cartons. Available in black and white, the product bonds to all common roof materials. It can also be used to flash curbs and edge metal, skylights, and gutters.

OMGEVERSEAL.COM (800) 633-3800

Three Things I’ve Learned: Tips from Seasoned Pros

Brighter Treatments

Woodsy Ceilings

Sauder’s WoodTrac panels offer an environmentally friendly way to upgrade ceilings in both residential and commercial settings. The panels are manufactured of medium density fiberboard with more than 90% pre-consumer recycled content.

WOODTRACBYSAUDER.COM (800) 523-3987

Osmose has added two products to its Cleanwood brand of wood protection chemicals: Busan 1009 and Prosan 18. Both help protect freshly sawn softwood lumber and timbers from mold and sapstain fungi, maintaining the natural bright appearance of the wood. Busan 1009 is a combination of the microbiocides MBT and TCMTB for use in dipping applications. Prosan 18 is a formulation of propiconazole and quaternary amine recommended for spray-on applications. Available in non-returnable drums and totes, typical dilution strengths range from 0.5% to 2.0%.

OSMOSEWOOD.COM (800) 585-5161

NOW WITH 1-YEAR NO-SAND WARRANTY

“It’s about trust.” Steve Olstedt, Olstedt Construction Steve Olstedt, a coastal developer of multi-family homes in Seaside, Oregon, knows you can’t count on fine weather, but you can choose people and products you trust. Like pointSIX Durastrand Flooring, with its innovative tapered edge. Learn other trusted tips for success by watching “Three Things I’ve Learned: Tips from Seasoned Pros,” one in a series of short high-value videos from pointSIX and Ainsworth Engineered.

www.pointsixexperts.com/steve

SCAN TO VIEW VIDEO

Tip-Top Fasteners

Top Hat Duplex screws from RemoveRite Inc. are designed for easy removal in temporary installations such as concrete forms, saving time and money. The fasteners are available in a variety of lengths— from 1-1/4” to 2-3/4”—and in a variety of package sizes—from 1-lb. to 50-lb. bulk boxes.

REMOVERITE.COM (661) 965-6128

Quick Bonding to Roofs

Quick Roof Ultra Bond from Cofair Products stops leaks and permanently repairs most roofing material, as well as skylights, gutters, and flashings. It can also be used for repairs on RV’s, trucks, trailers, pond liners, and tarps. Both 4” and 6” sizes come in 25’ lengths, in either black or white.

COFAIR.COM

(800) 333-6700

Mastering Storms

Scotchgard-protected T StormMaster shingles offer Class 4 impact resistance in classic styles and colors. Atlas Roofing manufactures the shingles with rubberized SBS technology for enhance strength and durability. Scotchgard Protector defends against algae stains and streaks.

ATLASROOFING.COM (800) 388-6134

40

The Merchant Magazine September 2012

Building-Products.com

Hail to the Roof

Storm Series concrete roof tiles from Boral Roofing are designed for high performance in hail storms. According to independent testing, the Class 4 tiles withstand sequential impacts of 2” hail at speeds up to 104’ per second. The product is also energy efficient.

BORALROOF.COM (800) 571-8453

Stainless Steel Rail

Atlantis Rail’s new cable railing combines the strength of steel with unobstructed views. SunRail Latitude features prefabricated 316L stainless steel posts, horizontal cable infill, and top rail mounting plates. Kit options include 36” or 42” railing heights, plus various post kits.

ATLANTISRAIL.COM (800) 541-6829

Sharing a Special Moment

A special moment frame from Simpson Strong-Tie provides a lateral system solution for both new construction and soft-story retrofits in wood and light-frame structures. Connecting links preserve the integrity of beams and columns during a large seismic event. Each frame comes in 198 preengineered sizes, and can be custom-engineered using the company’s frame-selector software.

STRONGTIE.COM (800) 925-5099

Building-Products.com

September 2012 The Merchant Magazine

41

Chinaʼs Downturn Benefits Northwest Mills

As China’s economy slows, lumber and plywood mills in the Northwest should have access to more timber at reasonable prices. According to Wood Resource Quarterly, China reduced log imports

from the U.S., New Zealand and Russia by about 15% in the first half of this year. “Reduced investments in public projects and a cooling residential property market,” reported the journal, have caused a decline in

sawlog imports. In addition, mills have been able to charge more for finished lumber and plywood because building has picked up in the past three months. However, mill operators are still hesitant to add shifts and hire more workers, because they aren’t sure if the improved log supply is a blip or a long-term trend. Log exports from the U.S. are controversial because logs from public lands can’t be legally exported. However, private timber firms increasingly shipped raw logs overseas when the U.S. housing market crashed and lumber demand decreased domestically.

Timberland Owner to Move

Pope Resources has sold its 10,000-sq. ft. headquarters building in Poulsbo, Wa., to a supermarket chain for $2.9 million. The timberland manager will relocate into a nearby 30,000-sq. ft. office it acquired last year.

Jewett Cameron Buying Quarter of Remaining Stock

Jewett-Cameron Trading Co., North Plains, Or., plans to repurchase up to 400,000 common shares of its stock—representing about 26% of its 1.6 million outstanding shares. Over the last two years, the LBM distributor has repurchased 823,006 shares under prior repurchase plans.

Ex-Worker Busted for Theft

A former employee of Rocky Mountain Lumber, Hamilton, Mt., has been arrested on suspicion of stealing nearly $43,000 worth of lumber from the company. If convicted, James Jumper, 49, faces up to 10 years in jail and a fine of up to $50,000. According to court documents, a purchasing manager discovered a large amount of building materials were unaccounted for and later reportedly overheard Jumper talking to a co-worker about a building project at his home. A trip to Jumper’s house revealed a large quantity of lumber wrapped with the company’s name. Jumper allegedly asked the manager about returning the wood, and the manager agreed to give him one week to do so. However, when a detective later went to Jumper’s house, he allegedly said he had purchased the lumber from two other companies, although his receipts purportedly did not match up with the lumber.

42

The Merchant Magazine September 2012

Building-Products.com

UVLA Photos by The Merchant

UMPQUA VALLEY LUMBER Association hosted its annual banquet and golf tournament Aug. 2-3 at Seven Feathers Casino & Resort, Canyonville, Or. [1] Karen Hess, Rick Troxel. [2] Beverly & Bob Shook, Jeff Ostrom. [3] John Duffey, Rob & Kelly Brown. [4] Gary Pittman, Jim McMenamin. [5] Rex Klopfer, Scott Swanson, David Abbott. [6] Kris Lewis, Tim Beaudoin, Lisa Rappe. [7] Frank & Nancy Daniels, Kris Lamke, Terri Collins. [8] Lee Greene, Greg Pittman. [9] Ed Miller, Robert Building-Products.com

Ewing. [10] Bob & Fran Maurer. [11] Bryan Payne, Stancy & Kevin Daugherty. [12] Grant Phillips, Kevin Dodds, Joe LaBerge. [13] Regina & Frank Peterson, Maria & Larry Mussallem. [14] Chuck Danskey, Steve Killgore. [15] Pam Elling, James Workman. [16] Jerry Ensworth, Steve Loebner. [17] Mike Foster, Jim Adams. [18] Alice Briggs, Tim Hunt. [19] Ted Holland, Ted Stock. (More photos on next two pages) September 2012 The Merchant Magazine

43

UVLA Photos by The Merchant Magazine

UMPQUA MILL WEEK (continued from previous page): [1] John Murphy, Art Reid, Brian Jackson, Matt Kolar. [2] Brian Johnson, Petar Stoyanov, Valerie Johnson. [3] Jim Weber, Jerry Long, Bert McKee, Jim McMenamin. [4] Ron & Joni Hanson. [5] Brad Myers, Beth Hager. [6] Jim Frank, John Strader, Randy Wiles. [7] Danny Osborne, Fred Sutton. [8] Sal Camarda, Bill Young. [9] Terry Johnson, Tanya Joyner, Kevin

44

The Merchant Magazine September 2012

Caughron, Mary & Jason Jacobson. [10] Bill Hetland, Brenda Lovell, John Redfield. [11] Joe Jameson, J.T. Taylor, Charity McSperitt, Ron Liebelt, Dustin Heusser, Kelli & Jeff Johnson. [12] Dana & Tod Kintz. [13] Sarah Krauss, Debra & Steve Swanson, Chris & Crystal Swanson, April & Matt Campbell. [14] Dick & Dixie Tibbets. (More photos on next page) Building-Products.com

UVLA Photos by The Merchant

MORE UMPQUA Valley Lumber Association Mill Week (continued from previous two pages): [1] David Franklin, John Bullion, Matt Fullerton. [2] Mickey Brown, Mike McCollum. [3] Kathy Lindsay, Chuck Casey. [4] Joe Robinson, Kurt Batey, Todd Lund, Ron Tiller. [5] Becky & Brian Jones. [6] Jim & Peggy Throne. [7] Don Hardwick, Rob Freres, John Rotticci. [8] Brad Hatley, Katie & Thor Yarbrough, Leslie Southwick. [9] Keshia & Ryan Owens. [10] Randy Johnson, Karen Slaughter, Steve Snyder. [11] Randy Gregory, Pat & Dave Wright.

Building-Products.com

With Cascadia decking, the unsurpassed natural beauty of Western Red Cedar is matched with Terminal Forest Products’ renowned manufacturing quality. This creates a product that is beautiful, functional, and eco-friendly. Cascadia decking is made from a 100% renewable and sustainable North American resource unlike PVC and composite decking, which is largely made from non-renewable petroleum products. Third-party life cycle analysis clearly shows WRC decking as the best environmental choice for decking: WRC significantly outperforms sustitute products in every environmental measure. Distributed by

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

• (541) 535-3465 • www.normandist.com

Superior Service, Products & Support September 2012 The Merchant Magazine

45

IN Memoriam

Richard Rendell Coale Jr., 54, sales manager for Huff Lumber Co., Santa Fe Springs, Ca., died Aug. 5 after a year-long battle with melanoma cancer. He started his industry career in the late 1970s with Rugg Lumber, Upland, Ca., moving to companies such as Mesa Forest Products, Costa Mesa, Ca., and Stock Building Supply, Los Angeles, Ca., before beginning a second stint with Huff in 2007. Robert “Bob” Ransom, 91, retired co-owner of Ransom Brothers Hardware & Lumber, Ramona, Ca., died July 16 in Morro Bay, Ca. During World War II, Mr. Ransom repaired fighter planes in the Carrier Aircraft Service Unit. Afterwards, he returned to work in

the family business, which was started by his father and uncle, Robert and Stanley Ransom. He retired in 1985.

James E. “Jim” Duckworth, 69, purchasing manager for Forest Products Sales, Murray, Ut., and sister company Utah Wood Preserving, Woods Cross, Ut., died July 26. He joined Forest Products Sales in 1974 after 10 years with the U.S. Marine Corps. that included two active tours of duty in Vietnam.

Charles Maitland “Chuck” Simpson, 88, retired owner of Big Sandy Lumber & Supply, Big Sandy, Mt., died Aug. 13 in Big Sandy. During World War II, he served as a signalman in the Navy. Afterwards, he earned a bachelors degree in the forestry program at the University of Montana. Mr. Simpson worked as a forester in the redwood forests of California

before returning to Montana to work for the Forest Service. He then went to work at Big Sandy Lumber, which he later purchased. Mildred Mary Crooks Holmes, 93, retired co-founder of Holmes Lumber, Scotts Valley, Ca., died Aug. 9 in Lahaina, Maui, Hi. In 1947, she and her husband, Lester, started a logging business in Arcata, Ca. They later launched Holmes Lumber, which her son, Larry, now operates.

Richard Douglas Willhite, 66, retired plant manager at Bennett Lumber, Elk City, Id., died July 31 in Grangeville, Id. During the Vietnam War, he served as a radio technician with the Air Force. In 1973, he graduated from Colorado State University with a degree in forest management science. He then worked six years as a forester for Southwest Forest Industries, Cortez, Co. In 1976, he joined Bennett Lumber as a forester in Clarkston, Wa. In 2001, he became plant manager of the Elk City mill, until it was sold in 2006. Before retiring in Sept. 2006, he served as plant manager of the new mill in Grangeville. Everette L. Vanskike, 95, retired owner of Vanskike Hardware, Buckeye, Az., died June 29 in Tuscon, Az. He and his wife, Erma Dell, started the store in the late 1950s.

William “Jay” Hamilton, 87, retired 35-year employee at Lumber Products, Tualatin, Or., died Aug. 5 in Portland, Or.

TREATERS

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

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

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

www.fontanawholesalelumber.com

46

The Merchant Magazine September 2012

Building-Products.com

ASSOCIATION Update

Lumber Association of California & Nevada has adopted a new name, the West Coast Lumber & Building Material Association. Although the change has been finalized, some materials and events may take several months to reflect the new name. Phone numbers, email, website and physical addresses remain the same. The association’s board noted the title LACN was too limiting both geographically and product-wise. The new name will be in effect at the group’s annual convention Oct. 18-19 at Monterey Marriott, Monterey, Ca. Convention speakers include lumber industry consultant Ruth KellickGrubbs, sharing how lumber dealers and suppliers are innovating and capturing new sales; Building Supply Channel’s Greg Brooks, discussing who’s winning and who’s not in the world of LBM, and BuilderLink president Greg Stine, leading the Technology Boot Camp, a presentation of evolving technology. Social events will include golf at

Del Monte Golf Course, a cocktail reception, and a president’s dinner.

Western Building Material Association is sponsoring webinars on “Gaining & Retaining Profitable Customers” Sept. 18 and a two-parter on “Yard Foreman Excellence” Nov. 13 and 15.

National Hardwood Lumber Association is partnering with Los Angeles Hardwood Lumberman’s Club to offer a bilingual lumber grading short course Sept. 25-27 at Ganahl Lumber, Anaheim, Ca. Instructor is Tommy Dunson.

Western Wood Preservers Institute will host its annual meeting Nov. 4-7 at Grand Wailea Resort, Wailea, Maui, Hi. North American Wholesale Lumber Association will convene its annual Traders Market Nov. 7-9 at Hyatt Regency, Chicago, Il. Keynote speaker will be comedian Greg Schwem. Bill Benjamin will pre-

sent a lunchtime program on “Emotional Intelligence and Being Your Best When It Matters Most.” Russ Taylor will lead the Magellan Network breakfast program.

Association of Millwork Distributors will hold its annual convention and tradeshow Oct. 8-12 at the Kentucky International Convention Center, Louisville, Ky. Former NFL quarterback Tom Flick will keynote. A business roundtable will foster discussions on “What’s Keeping You Up at Night?”

North American Deck & Railing Association holds its annual meeting and national deck awards dinner Oct. 10 at American Visionary Art Museum, Baltimore, Md. The event coincides with the start of DeckExpo Oct. 10-12 at the Baltimore Convention Center. APA-The Engineered Wood Association will host its annual meeting Nov. 9-13 at the Ritz Carlton, Amelia Island, Fl.

Big Creek Lumber Co. has a long history of practicing superior forest stewardship — growing, selectively harvesting and milling high quality California redwood.

During our 63 years in the redwood business, Big Creek has developed a reputation for being a reliable supplier of high quality lumber. We produce a wide range of grades and dimensions, custom cut timbers, pattern stock and fencing. Order full, mixed or partial truckloads.

For highly experienced and personalized service contact Frank “Lud” McCrary, Janet McCrary Webb or Jim Busick

3564 Hwy. 1, Davenport, CA 95017

(831) 457-5024 • Fax 831-423-2800 www.big-creek.com • janetw@big-creek.com

Building-Products.com

September 2012 The Merchant Magazine

47

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-8520231 or dkoenig@ building-products.com. For more info, call (949) 852-

HELP WANTED

REDWOOD EMPIRE Wholesale is a timber and manufactured based distributor of redwood, pressure treated, plywood and imported hardwood such as Ipe and softwood lumber. In addition to our manufactured base products, Redwood Empire distributes high quality western species fir and other softwoods as well as steel products. We are looking for highly motivated, well-rounded and experienced salespeople for our locations in Morgan Hill and Carlsbad, Ca. Please send resumes to Sean Burch, sburch@redwoodemp.com. www.redwoodemp.com

1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.

BUSINESS OPPORTUNITIES

PATENTED TECHNOLOGY for Fencing, Decking, Posts: We are in search of partner or licensee(s) to bring new encapsulated lumber profiles to market. Technology provides ability to make cost effective, structural wood composites for decking/fencing/post applications. Barry, (508) 776-2647, bcurtis@ foamtekcorp.com.

Is this your copy? The

MERCHANT Magazine Get your own every month.

Contact Heather at (949) 852-1990

Kick-start your 2013 selling season Get the attention of 20,000+ lumber buyers across the country. Ensure your ad message reaches EVERY company attending the 2012 N A WLA T ra d er s Ma rk e t by advertising in Traders’ Preview, a Special Supplement appearing with both The Merchant Magazine and Building Products Digest. For one low price, you receive: • Full national distribution of your ad, packaged with the October 2012 issues of BPD and The Merchant. • Expanded directory listing for your company. • Distribution at the event. • Free clickable online ad for your company (one month exposure on building-products.com). • Heavily discounted, all-inclusive ad rates.

Call Chuck Casey or Alan Oakes at 949.852.1990 48

PRODUCTS FOR SALE

The Merchant Magazine September 2012

An Unfair Fight, How Winners Sell and Sellers Win is a must for salespeople, sales managers and company owners who want to grow their sales in hypercompetitive markets. Inspired by 55 of the best “Olsen on Sales” columns from The Merchant Magazine, the chapters range from specific sales techniques to how to hire and manage a sales force. James Olsen is a 30-year lumber industry sales veteran—20 years as a broker, 20 as sales consultant. As principal of Reality Sales Training, his clients boast an average +55% yearover-year sales growth over the last 20 years. His loyal following of lumber industry sales professionals look forward to his monthly column. He is passionate about sales; he lives and knows what he is writing about. The writing is clear, interesting and specific. The articles will challenge your thoughts on sales and will also make sales An Unfair Fight for you, your team, and your company. Get your copy today from www.realitysalestraining.com

Building-Products.com

DATE Book

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

North American Wholesale Lumber Assn. – Sept. 10-13, wood basics course, Corvallis, Or.; (800) 527-8258; www.nawla.org.

Construction Specifications Institute – Sept. 11-14, annual convention & show, Phoenix Convention Center, Phoenix, Az.; (800) 689-2900; www.csinet.org. Willamette Valley Hoo-Hoo Club – Sept. 12, trap shoot, Sportsman’s Club, Creswell, Or.; (541) 688-6675.

GlassBuild America – Sept. 12-14, Las Vegas Convention Center, Las Vegas, Nv.; (866) 342-5642; www.glassbuildamerica.com.

RISI – Oct. 3-5, annual North American forest products conference, Park Plaza Hotel, Boston, Ma.; www.risi.com/naconf.

Association of Millwork Distributors – Oct. 8-12, annual convention & show, Kentucky International Convention Center, Louisville, Ky.; (847) 303-5664; www.amdweb.com. Remodeling Show – Oct. 9-12, Baltimore Convention Center, Baltimore, Md.; (866) 475-6495; www.remodelingshow.com.

DeckExpo – Oct. 10-12, Baltimore Convention Center, Baltimore, Md.; (866) 475-6495; www.deckexpo.com.

Do it Best Corp. – Oct. 13-15, fall market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

American Architectural Manufacturers Association – Oct. 14-17, national fall conference, Hyatt Regency Tamaya, Albuquerque, N.M.; (847) 303-5664; www.aamanet.org.

Jensen Distribution Services – Sept. 12-14, fall market, Spokane Convention Center, Spokane, Wa.; (800) 234-1321; www.jensenonline.com.

Door & Hardware Institute – Oct. 17-18, annual conference & expo, MGM Grand, Las Vegas, Nv.; (703) 222-2010; dhi.org.

Timber Products Manufacturers Association – Sept. 14, annual golf tournament, Indian Canyon Golf Course, Spokane, Wa.; (509) 535-4646; www.timberassociation.com.

Remodeling & Decorating Show – Oct. 20-21, Orange County Fair & Event Center, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com.

National Hardwood Lumber Association – Sept. 12-15, annual convention, Sheraton Hotel & Towers, Chicago, Il.; (800) 9330318; www.nhla.org. True Value Co. – Sept. 18-23, fall market, Salt Palace Convention Center, Salt Lake City, Ut.; (773) 695-5000; www.truevaluecompany.com.

Building Component Manufacturers Conference – Sept. 19-21, Colorado Convention Center, Denver, Co.; (608) 310-6722; www.bcmcshow.com.

National Hardwood Lumber Association – Sept. 25-27, bilingual lumber grading short course, Ganahl Lumber, Anaheim, Ca.; (800) 933-0318; www.nhla.org.

Building-Products.com

Lumber Association of California & Nevada – Oct. 18-19, annual convention, Monterey, Ca.; (800) 266-4344; www.lumberassociation.org. Composite Decking & Railing Conference – Oct. 22-23, Atlanta, Ga.; www.deckrailconference.com.

Green Industry & Equipment Expo – Oct. 24-26, Kentucky Fair & Expo Center, Louisville, Ky.; (800) 558-8767; www.gie-expo.com.

Specialty Tools & Fasteners Distributors Assn. – Nov. 4-5, annual convention & show, Orlando, Fl.; (800) 352-2981; stafda.org.

Western Wood Preservers Institute – Nov. 4-7, annual meeting, Grand Wailea Resort, Wailea, Maui, Hi.; (800) 729-9663; www.wwpinstitute.com.

September 2012 The Merchant Magazine

49

IDEA File

ADVERTISERS Index

Easing In, Easing Out

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

Advantage Trim & Lumber [www.advantagelumber.com]..........42 Ainsworth [www.ainsworth.ca] ................................................38-39 Atlantis Rail Systems [www.altlantisrail.com].............................27

Bear Forest Products [www.bearfp.com].....................................32 Big Creek Lumber Co. [www.big-creek.com]...............................47

Cal Coast Wholesale Lumber ..........................................................4

California Redwood Association [www.calredwood.org]...........49

California Redwood Co. [californiaredwoodco.com].........Cover II FRENCHTOWN HARDWARE customers get acquainted with new owner Mike Tyksinski (left) and chat with previous owner Gene Hale (right).

The new owner

of a small hardware store is taking mentoring to a whole new level—and everyone involved benefits. Mike Tyksinski became proprietor of Frenchtown Home & Hardware, Frenchtown, N.J., on August 1. Nothing unusual about that, except that the previous owner, Gene Hale, will be at his side for the next six months, passing on all he’s learned over the past 30 years. “My involvement is written into the sales agreement,” says Hale, who had owned the store since 1980. After six months of daily involvement, he’ll continue to assist the new owner (and earn retirement income) by coming in one day a week to maintain the store’s fix-it business: repairing screens, lamps, and furniture. And that’s not all. For two weeks every year, he’ll work the counter daily, allowing Tyksinski to go on vacation. It’s a sweet deal that eases the transition for the new owner, allows the previous owner to stay involved, and shows customers that both men want to minimize disruption to the business. “The best part of having a business in a small town is building relationships with people, being integrated and being part of the community,” says Hale. The new owner agrees. “Interacting with customers is the best part of the business,” says Tyksinski. “ I got to know Gene while working on our own house and visiting the store for supplies. Seeing me work with him is comforting to customers.” Tyksinski says he won’t change much at the store, which packs a wide variety of well-organized merchandise into just 2,000 sq. ft. He would like to do more marketing, to “raise the store’s profile and let people know that it’s here.” Two days after closing the sale, he started a Facebook page for the store. A week later, he staged an open house, complete with food and beverages. The event allowed Hale to thank loyal customers and introduce them to the new guy.

50

The Merchant Magazine September 2012

Canfor [www.canfor.com] ...................................................Cover IV

Capital [www.capital-lumber.com]................................................34

Duckback Products [www.superdeck.com].................................28 Fontana Wholesale Lumber [fontanawholesalelumber.com].....46

GRK Fasteners [www.grkfasteners.com].....................................23 Huff Lumber Co. .............................................................................41

Humboldt Redwood Co. [www.getredwood.com] .........................5 Idaho Forest Group [www.idahoforestgroup.com] .......................7

JEC Composites Americas [www.jeccomposites.com]..............30 Keller Lumber Co............................................................................46

LP Building Products [www.lpcorp.com].......................................3 Mary’s River Lumber [www.marysriverlumber.com] ..................35

Norman Distribution Inc. [www.normandist.com].......................45

Nu Forest Products [www.nuforestproducts.com] .....................21

Osmose [www.osmose.com].........................................................27

Redwood Empire [www.redwoodemp.com] ........................Cover I Roseburg Forest Products [www.rfpco.com] ..............................29 Royal Pacific Industries .................................................................40

RoyOMartin [www.royomartin.com] ...................................Cover III

Simpson Strong-Tie [www.strongtie.com].....................................8 Siskiyou Forest Products [www.siskiyouforestproducts.com] .31

Sunbelt [www.sunbeltracks.com] .................................................42 Swanson Group Sales Co. [www.swansongroupinc.com].........25 Taiga Building Products Inc. .........................................................26

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....34

Western Forest Products [www.westernforest.com] ..................33 Western Red Cedar Lumber Assn. [www.wrcla.org] .......33, 36-37

Building-Products.com

He has good reason to cry. We threw him out. Only the finest pass our tests. SilvaStarÂŽ fascia is 100% usable, defect-free and handpicked from the best of Canfor, the worldâ&#x20AC;&#x2122;s largest producer of SPF lumber. Call us at 604 264-6015.

silvastar.com