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HOW TO SELL MORE DECKING COLUMN WRAPS NAWLA SPECIAL SECTION

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Viance Treated Wood Solutions

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MERCHANT

Special Features 9 PRODUCT SPOTLIGHT TIPS TO SELL MORE DECK STAINS

10 FEATURE STORY WHAT TO STOCK IN DECKING & RAILING

12 MARGIN BUILDERS BETTER UTILIZE YOUR DECK SOFTWARE

14 INDUSTRY TRENDS HOW GREEN IS HARDWOOD DECKING?

16 PRODUCT SPOTLIGHT POST WRAPS CREATE NEW COLUMNS

33 SPECIAL FOCUS: NAWLA • LUMBER INDUSTRY RECRUITMENT • SELLING TO NEWLY ACQUIRED FIRMS • CONFLICTS WITH SALES ACCOUNTS • MANAGE MULTI-GENERATIONAL TEAMS • FUNDING WORKING CAPITAL

46 PHOTO RECAP: LACN GOLF

The Merchant Magazine May 2012

In Every Issue 6 TOTALLY RANDOM 18 COMPETITIVE INTELLIGENCE 20 OLSEN ON SALES 22 GREEN RETAILING 26 FAMILY BUSINESS 28 MOVERS & SHAKERS 30 IN MEMORIAM 53 NEW PRODUCTS 59 ASSOCIATION UPDATE 60 CLASSIFIED MARKETPLACE 61 DATE BOOK 62 IDEA FILE 62 ADVERTISERS INDEX

May 2012

Volume 90 Number 10

Magazine

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

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

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TOTALLY Random By Alan Oakes

Patience is a virtue...

HAT WAS WHAT MY PARENTS taught me from a very early age. But I feel—and perhaps chalk it up to the natural aging process—life at times seems to be moving too fast. Consequently, patience and tolerance levels are declining just as quickly. I cannot believe how much screaming and shouting goes on around me—especially on television and on line. In a world of Twitter (and it is time that went away, IMHO) this got-to-know-now, got-to-do-now world we live in makes me worry about the future. Times have changed, and not all for the good. In the good old days, there were the weekends when that project around the home could take three months. Now it has to be finished the same weekend! At work, the project that would have taken weeks now has to be done by tomorrow. Dinner that used to be slaved over for hours now is out of a bag, oven to table, in 20 minutes. Kids eat dinner, play video games, and do their homework all at the same time, while rushing to the next outof-school activity. Everything has to be done now and instantaneously! Much of the troubles our economy has gone through these past years can be blamed on the need for instant gratification, that regardless of whether it could be afforded or not, there was the need to have it now, rather than save for it. We are living in a time that gets faster by the day, hour and minute. It’s a world where a newsperson gets fired if another network gets on air with a breaking story a few minutes earlier. Sometimes even seconds are too long. I must admit my wife is always saying, “Hold on! I’ll get to it in a few seconds when I finish the last thing you barked your orders for.” Yes, it seems I have succumbed, too. In the process, we have lost patience and tolerance. Patience is the ability to tolerate delay, and it seems that most of us are guilty of a lack of it. Our shortage of patience suggests our time and needs are more important than anyone else’s. I’d like to think that I am better at it than in the past when someone jumped the line at the supermarket or cinema line. I let it go now, but maybe because people seem a lot meaner than they used to and you never know what they will pull from their pocket. When I get cut off on the highway, I just take a breath (or two, or three). Maybe it is maturity, but today I am better at gauging how important something really is. So many times, I see people lose their tempers when, once out of that moment, minimal analysis would show that it really did not matter. Things that would have gotten my cheeks boiling not so long ago now do not. I find my stomach is no longer in the knots it used to be in. Instead, look around you and marvel at our universe. Understand what is really important and learn to accept other’s failings. Once you have serious illnesses around you, for instance, you renumber your priorities. Lastly, looking at my own field, I am astounded at the decline of real journalism. It should alarm anyone of any intelligence. It’s all brought about by the needto-know crowd. On television, news has been dumbed down to the lowest common denominator. Real thought and insight have been thrown out of the window for the sake of expediency. Editorial standards evaporate when “news” has to be published in seconds. And, yes, the biggest danger is that real editorial costs money and cannot be given away free. Because of that, our journalism has evolved into covering what some celebrity was wearing, instead of creating intelligent debates on the issues that face us. Serious journalism is in real decline, and we all should unreservedly lament this loss. How can you have an opinion when you have had no serious news to base your opinion on? Are we going to base our worldly opinions on the Huffington Post?

Alan Oakes, Publisher ajoakes@aol.com

The Merchant Magazine May 2012

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A publication of Cutler Publishing

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Building-Products.com

PRODUCT Spotlight Deck Stains

8 tips to sell more stains

ELLING HIGH-END stains can be challenging with current economic conditions, but recession or no recession, there is something to be said for the value of a quality wood coating. You need less product, there’s less labour involved, and the end result looks and performs better. The key is educating staff so they have the tools and knowledge to help customers make the right choice for their homes. To help with that, wood stain manufacturer Sansin questioned three of its most successful dealers in North America. Their strategies can boost your sales, which will not only help your customers, but also help your bottom line.

1. Use the stain yourself. This gives you first-hand experience when talking to customers and telling them

why they should use a premier brand.

2. Know the product inside & out. When customers are going to spend big money on stain or finish, they need a dealer who knows more about the product than just the literature. That’s why Doug Janzen of Janzen’s Paint & Decorating, Brandon, Mb., makes sure his sales reps know wood stains like the backs of their hands. 3. Set out samples. Every stain and finish product claims to last a certain amount of time. But when you see how well they work in action, it really makes an impression.

4 . Let them try it. Hands-on experience can often make or break a sale. So why not let your customers try the product in the store? That’s what Janzen does. He has samples of the stains that he lets customers brush onto wood right in the store, so they can get a sense of how it works and how it looks. “This gives people a first-hand sense of the rich, warm tone of the finish,” he says. 5 . Go to your best contractors. Many customers won’t be working first-hand with the stains themselves, but their contractors will. That’s why Bjorn Hanson, Burnell’s Decor, Rice Lake, Wi., let his best contractors try it out first. “They were so impressed with the product that I now make most of my sales to my regular contractors,” he says.

6. Focus on custom colors. Some higher-end stains and finishes allow you to custom-tint the product. “Not only can we do the 80 colors in Sansin’s catalog, but the custom-tinting process allows us to make any color our customers want,” says James Housser, owner of Housser’s Paint & Wallpaper, Orillia, Ont. “That’s a major selling point.”

7. Go green. Another key selling point, says Housser, can be a water-borne formula that makes the staiin a more environmentally friendly choice. Or, perhaps it dries faster, has less odor, or is easier to apply.

SAMPLE-PACKED merchandiser from Sansin makes it easy for customers to select premium wood stains. Building-Products.com

8. Offer tips & tricks. When you have strong knowledge of the product, you can provide pointers about using it that will make customers more willing to try it. According to Hanson, “I try to offer my customers as much information as possible so that they’ll have success with the product.” May 2012 The Merchant Magazine

FEATURE Story By David Elenbaum

What to stock to sell more decking and railing

product offerings in decking and railing are a good thing for the typical LBM dealer—that is, unless he wants to stock something. “We don’t know what color to stock and as soon as we make a choice, it will be the wrong color” is a very common statement in the industry. It used to be that you had treated, some gray composite, and if you were savvy, a vinyl rail that came in any color a prospect wanted as long as it was white. The only salesmanship that was needed was to point out the maintenance differences and you were done. Today, the decking selection area

Photo by Guardian Building Products

HE INCREASINGLY DIVERSE

in a lumberyard is typically a shelf with so many choices that a prospect may not know where to start. The sales staff at the store very likely does not have enough time to learn about all of the brands and lines that they have access to. Finally, what happens if the prospect decides on a color that has been discontinued or the distributor stopped carrying? The crux of the matter is that if you don’t stock anything, you may not be a player. The contractors rely on dealers to stock products and normally will try to sell what they can get, today. Homeowners may wait for special delivery, but the option of an in-stock product will always weigh

DECKING SALESMAN at Stock Building Supply, Johnston County, N.C., shows off his wares.

The Merchant Magazine May 2012

heavily on their buying decision. It’s no one’s fault, we are just instant gratification people. We like service now, our way, right away, and there is no need to plan ahead in today’s world. Principia Partners’s report from 2011 shows that the pro contractor buying from the pro dealer is the top channel for decking and railing by a vast margin. Freedonia reports that the entire category is due to increase over the next few years by a significant measure. From these sources of information, dealers may want to revive their focus on the category, but how? Here are some ideas on how dealers can be involved in this saturated market and, perhaps, make a few bucks in the process: • In addition to treated, stock an alternative decking in three lengths and a fascia board. Stock the fasteners and clips, and consider stocking a complementary railing. It’s good to have everything in your yard that is needed for the typical 16x20 deck. Choosing the color is crucial, but most manufacturing reps can help you decide which one is best for your location and market. If the brand you go with has a hidden fastening system, go with that. Get the tools to install the products and sell them or rent them out. Stock the brackets and bolts needed for decks to meet code. Once you decide on the color and brand, run a special on it and make sure it is priced more competitively than your special orders. It’s okay to have all of the other samples and have them there if someone asks for them, but you must clearly show your choice as the frontrunner and have a really good sales pitch as to why you made that choice. Keep the materials Building-Products.com

onsite in your inventory, and make sure your yard guys ship it perfect and clean with an emphasis on clean.

• Leverage your suppliers and sales staff. Manufacturers reps and distribution reps are always happy to make calls to contractors to help you grow your business. Choose a member or two of your sales staff who will be responsible for decking and railing sales. By not diluting it, you will create a specialist who closes more deals then if you spread the responsibility out amongst the entire store. Make that person the doctor, the person everyone trusts because he knows so much about it that they will let him do surgery. Homeowners and contractors trust validated knowledge in a decking salesperson—a person who affirms factual information found online or in publications read by the public. The salesperson should possess the ability to capture the prospect, determine the objections and needs the prospect values, and apply those to the product you want to sell. Salesmanship requires more work but is also more profitable.

• Market your store as a resource. People go on the Internet to research what they want to buy, but in today’s world they look for validation from the salesperson they deal with, whether it is on the phone or in person. Decking rarely sells in an electronic transaction. Market online aggressively with a website, search engines, and social media. Link to your supplier websites and ask for help from them with content to put on yours. Advertise that you stock decking materials and that you can provide product knowledge. Participate in the industry associations, such as NADRA, and host events at your store. Learn the codes and interact with the codes officials that inspect your customer’s projects. By stocking products and proving to your market that you are committed to the decking industry and are a stocking resource for the materials, you will begin to gain marketshare and see growth in decking and railing.

– David Elenbaum is owner of a deck construction firm in South Carolina and has worked in the contracting, manufacturing and distribution channels during his 12 years in the deck and rail industry. Reach him at davidelenbaum@gmail.com. Building-Products.com

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Engineered Wood Products

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May 2012 The Merchant Magazine

MARGIN Builders By Sean Seymour, Simpson Strong-Tie

Get more out of your deck design software

OFFERING DECK design services, such as with Simpson Strong-Tie’s DeckTools software, helps boost dealers’ decking sales.

VER THE YEARS , LBM dealers have invested in software to help their pro desks design and sell decks. All too many of these dealers, however, have found their deck design software is underutilized by associates. That said, you might be surprised to learn that a number of lumberyards and pro dealers are finding new ways to grow their business organically by partnering with their existing contractor customers and capturing more share of wallet from their d-i-y customer base. Three lumberyards provide examples of how using deck software is generating growth.

Parr Lumber

Headquartered in Hillsboro, Or., Parr Lumber is a family-owned business that opened its first lumberyard in

The Merchant Magazine May 2012

1930. Today, there are 19 stores in Oregon and Washington, primarily in the Bend-Tacoma-Seattle area. For Parr, deck building is seasonal. “Currently deck building is about 50% of our business in the spring,” said Traci Roe, counter sales at Parr Lumber. “It’s about 50/50 contractors vs. homeowners.” The chain recently invested in deck software, but it’s currently underutilized. “I’m the only one trained on it, but ideally, I would like to have a center where anyone can take their customer and build their deck,” said Roe. “The software is easy to play with and pretty forgiving, so having everyone trained shouldn’t be too difficult. I’m not the most computer savvy, so it’s nice that I can go back and change anything.”

Parr recently partnered with two of its loyal contractors on two deck projects. “They knew we had the software, and being able to see a picture of the finished product was huge. It also was a big selling point,” Roe said. Although Parr would like to expand the use of its software, they have noticed that it has increased the efficiency of their deck design process and their ability to upsell. “With the click of a button, I can change materials and give customers more options,” said Roe. “I had three d-i-y customers and all three chose us for their deck. They knew what they wanted, and having that visual piece added a lot. The ability to show materials other than wood made it easier for us to sell them on it. Oregonians tend to want real wood and organic, natural materials, but when we tell them about the upkeep and how rain affects mold and overgrowth, they’re more willing to look at other options. We moved to composite, and now we’re moving more toward PVC.” Parr believes that once they get a deck station set up in their store in Hillsboro, they’ll have everyone trained on the software. Roe added, “I want to give it to our outside salespeople for use with their customers too. With full integration into our business, it’s a phenomenal tool for us. We can crank out a deck design in 15 minutes. I love it.”

PMC Building Materials

About 15 miles north of Atlanta, Ga., PMC Building Materials opened its doors in September 2008. As a fullservice lumberyard focused mainly on remodelers, they also serve deck builders, contractors and homeowners/ d-i-yers. PMC often uses focus groups Building-Products.com

to gain valuable feedback from their remodeler customers. With their input, PMC decided to build a deck center two years ago. Today, it’s the biggest deck display in the Southeast. About 10% to 15% of their business is now deck building, and 90% of that comes from contractors and remodelers. PMC’s goal is to become a onestop shop for all of their customers’ decking needs. “We needed software that could handle multiple (product) libraries as well as build a library quickly, because we have more than 17 deck brands and 21 railing systems,” explained Thomas Matula, IT/web/marketing manager for PMC. “The software had to be easy to understand and work with. We’re still gearing up and have one outside sales guy working specifically on the software, and one front desk person designated to teach our front counter staff.” PMC’s plan is to get the design stage out of the hands of their customers in order to free up their time so they can focus more on leads and generating more income for their business. “We’re just starting with the software, but the belief is that by utilizing it in the real-world stage, we’ll ultimately be able to improve it as we grow across multiple markets,” Matula said. To date, the software has helped provide more professional-looking quotes and more opportunities to upsell projects. “As we continue to brand ourselves as the one-stop shop for all decking needs, the software is truly the icing on the cake. We have the knowledge to help a builder make a sale, which means they keep coming back,” said Matula.

The software also reduces design time. “It used to take us a day to design a deck. Now it takes a fraction of the time, so we can have it done while the customer is in the store,” added Walter. For contractors, J&W can provide plans and estimates for their customers. “Even when they come in with a difficult design drawn on a napkin, we’ll review it on the software to figure out if it can be done. As we’ve become more proficient with the software, we’re using its railing design and customized features a lot more, and now are beginning to design patio covers,” said Walter. The software also has made J&W’s deck design process more efficient. “It’s more visual and we can provide quicker quotes to our contractor customers, who can then provide quicker turnarounds to their customers,” he said. It has made an impact with homeowners as well, influencing upgrades. According to Walter, “D-i-yers are absolutely amazed. They see the finished product within a few minutes, and we can change options on the fly. Often, they have three to four ideas in mind, and we can switch those around and show them in color. Even though

they think something might be more expensive, once they see it, they like it. And we can show them that it might not affect price as much as they thought so they tend to buy upgrades.” J&W currently has 20 employees trained on the software. Walter added, “We want to continue to improve our skills and use the advanced features, so we can do things like tweak designs even more, design better railings, and price out patio covers. It really helps you expand beyond the deck.” While deck design software is not new, the technology continues to evolve and improve. The latest software on the market can produce 3D photo-quality deck designs with sophisticated railings and customizable product libraries as well as estimates, take-offs and plans. As showcased by these dealers, deck software is helping expand business with contractors and d-i-yers and contributing to the bottom line—not only with how fast it can generate a deck design, but with the visual presentation in showing upgrades that ultimately lead to increased sales.

– Sean Seymour is national sales manager for DeckTools with Simpson StrongTie, Pleasanton, Ca. Reach him at sseymour@strongtie.com.

With over 50 years in the business, J&W Lumber has 45 employees across six stores—five in San Diego County and one in Riverside County, Ca. Their main focus is decking and patio covers. Decking is 40% of J&W’s total business, with 70% coming from contractors and 30% from d-i-yers. Providing deck design has been a part of J&W’s business for much of its history. “We used to spend hours with a pencil and a ruler drawing a design,” explained J&W’s Scott Walter. “But we didn’t give customers a visual of what their deck could look like. Today, we use software that provides customers with a 3D digital presentation of their deck.” Building-Products.com

DESIGNS for decking projects also cover railings (upper) and patio covers (lower). May 2012 The Merchant Magazine

Images by Simpson Strong-Tie

J&W Lumber

MARGIN Builders By Bob Hafner, Tiger Deck

How green is tropical hardwood decking?

and treated softwoods have a significantly lower environmental impact than composite or plastic decking products*. Given this information, we can infer a number of conclusions about hardwoods by focusing on four environmental factors: responsible sourcing, durability and lifespan, environmental impact, and end-of-life disposal.

Responsible Sourcing

INDEPENDENT STUDIES show hardwood decking stacks up well environmentally against softwoods and composites. Photo by Tiger Deck

S IN MOST PARTS of the building industry, the demand for green decking continues to surge. Savvy marketers are taking advantage, promoting the green qualities of their manmade or natural wood materials. But the greenest option might be the one consumers know the least about and comprises less than 5% of the decking market. So just how green are tropical hardwoods? Most people think of green products as having minimal long-term impact on the environment, from raw

The Merchant Magazine May 2012

material sourcing to manufacturing, selling, and end-of-life disposal. The challenge for hardwood advocates is that most cradle-to-grave life cycle studies focus on other decking materials, specifically natural softwoods, treated softwoods, and wood-plastic composites. We can still learn from these studies, however, as hardwoods share many of the same life cycle traits as softwoods. Let’s start with the studies’ basic findings: Solid wood products with natural resistance to insects, rot, and decay (such as redwood and cedar)

Hardwood decking is made of tropical tree species, harvested from tropical forest areas around the world. Contrary to popular belief, however, logging is not the root cause of tropical deforestation. The conversion of tropical forestland to ranches and farmland is far more destructive, a trend that’s exacerbated by energy companies seeking to produce more agro-fuel crops. In fact, most countries in the tropics have initiated strict logging regulations that are growing in scope and enforcement. When properly regulated, sustainable logging can actually slow or reverse deforestation by adding value to forestland and providing a viable alternative to farming and ranching. Plus, tropical countries are eligible for carbon sequestration projects, providing incentives to plant new forests, replace old ones, or grow plantation forests consisting of fast-growing decking-appropriate species. Replenishing depleted forests or planting new * Studies include Life Cycle Assessment of ACQ Lumber vs. WPC b7 Christopher A. Bolin & Stephen Smith, Journal of Cleaner Production, June 30, 2010, and WPC vs. Wood Decking by Dr. Jim Bowyer, Dovetail Partnerships, July 28, 2010. Building-Products.com

forests has the potential to provide income to developing countries, offset companies’ fossil fuel emissions, boost the supply of eco-friendly wood products, and increase tropical forest area (this has already started in some countries).

Durability & Lifespan

Solid wood has a long track record of performance. Softwood decks (not old growth) may last 10 to 15 years on average, depending on care. By comparison, tropical hardwood decking can last two to three times as long as softwood decking. For example, the Coney Island boardwalk was renovated with ipé (the first proven hardwood decking species, along with Tigerwood and cumaru) in the 1960s and sections of the Atlantic City boardwalk in New Jersey were replaced with ipé in 1989. In both of these heavy commercial applications, the hardwood decking is still performing well. All solid wood decking products require UV protection for color preservation, but as you move from treated to cedar/redwood to hardwoods, the required maintenance declines. Because hardwoods are much denser, they're also far more resistant to scratching, denting, and other surface degradation.

Wood-plastic composites are not recyclable and end up in a landfill. Some manufacturers claim to make plastic decking from 100% recycled materials, but the plastic can't be recycled indefinitely; eventually it ends up in a landfill as well and will not biodegrade in any reasonable time frame. Tropical hardwood decking offers a number of environmental advantages over other materials. It lasts longer, requires less energy from cradle to grave, is available through selective and sustainable logging practices, and is biodegradable. Those looking for a green decking option should consider tropical hardwoods as a viable option.

– Bob Hafner is president of Tiger Deck, Wilsonville, Or. Reach him at (503) 780-2876 or bob@tigerdeck.com.

Environmental Impact

Wood-plastic composites have a significantly higher impact than solid woods in every environmental measure, including embodied energy, global warming acidification, aquatic eutrophication, ozone depletion, smog formation, and human respiratory effects. Although the referenced studies focus only on North American softwoods, the practices used in tropical forestry are extremely similar up to the point of shipping from source to market. Because decks made of tropical hardwoods can last up to three times longer than softwood decks (and equal to or more than composites), it’s reasonable to assume this longer lifespan offsets additional embodied energy used during transportation in overall environmental impact. Even if the wood composites last three times as long as softwood—no one really knows their life expectancy—the studies still believe that solid wood products will have a smaller environmental impact.

Afterlife

What happens when the product wears out? Natural solid wood products are recyclable and biodegradable, eventually reverting to soil over time. Hardwoods generally take longer to biodegrade than softwoods, but the slow degradation is offset by hardwoods’ longevity.

Specializing in Flatbed & Van Freight for over 10 years

4911 Warner Ave., Ste. 205, Huntington Beach, CA 92649 Phone (714) 840-5366 • Fax 714-840-1933

www.straight-line-transport.com “A Load We Transport Is a Load off Your Mind” Building-Products.com

May 2012 The Merchant Magazine

PRODUCT Spotlight PVC Post Wraps

Post wraps make new columns in a snap

The wraps are available in a full range of sizes to cover posts measuring 4”x4” to 8”x8”, up to 10’ tall. Kits with complementary base moulding and post caps in both 5” and 7” sizes are also available. Kleer also offers a wide variety of product solutions to help contractors create custom columns. Trimboard with TruEdge fully sealed edges and a wide variety of extruded moulding profiles can be used to create the exact look their customers desire. The company also offers an assortment of color-matched adhesives, cement, sealant and fasteners for a complete solution and the best results. Two-piece column wraps from

CELLULAR PVC trimboards manufactured by AZEK Building Products were used to create custom columns for a covered patio.

PDATING EXTERIOR wood columns with cellular PVC post wraps and trimboard is a cost- and time-saving alternative to repainting or total replacement—which makes these products attractive to cost-conscious homeowners. Over time, wood posts and columns on porches and patios can weather and require repainting—while still being structurally sound. Or, perhaps a homeowner just wants to add more curb appeal. On new projects, PVC wraps can be added at the end—reducing the chance of accidental damage. KleerSnap post wraps from Kleer Lumber, Westfield, Ma., look and work like natural wood but are virtual-

The Merchant Magazine May 2012

ly impervious to moisture and insects. They provide an easy, cost-effective way to improve the appearance and durability of exterior posts. Although the product doesn’t require painting, it can be painted to match existing exterior details and is guaranteed to never rot, warp or delaminate. “Exterior posts represent one of the more visual elements of an outdoor structure,” says Jack Delaney, senior vice president of sales and marketing at Kleer Lumber. “KleerSnap post wrap is a simple and cost-effective way to enhance the aesthetic appeal of the posts while lowering the amount of maintenance required to preserve their beauty.”

UPDATING a structural wood post is easy with column wraps, such as this one from Fypon. Building-Products.com

Fypon, Maumee, Oh., are available in 11 styles, to quickly transform an ordinary structural post into something distinctive. Choices include tapered and non-tapered column styles, plus a variety of cap and base styles. An unassembled column wrap in a plainer, box style is also available, in widths from 6” to 12” and a variety of standard heights that can be trimmed on the jobsite. Each kit includes all needed components, including adhesive, screws, and cleats needed for installation. PVC products manufactured by AZEK Building Products, Scranton, Pa., allow builders to get creative when wrapping columns for porches, pergolas, and outdoor rooms.

KLEERSNAP post wraps by Kleer Lumber make short work of column upgrades on a front porch/entry.

“Easy workability allows the contractor to be creative, while providing low-maintenance,” says Michael Gori, director of product management at AZEK. “For wider columns on porches and entryways, contractors typically opt for AZEK Trim either in board profiles or cut from AZEK Sheet.” Steve Gray, who owns and operations a renovation firm in Indianapolis, In., uses AZEK trim for beams and large columns. “We intertwine half of the end grain so it’s interlocked and won’t come apart,” he says. “We find a continuous need for this type of low-maintenance trim, which needs no upkeep.” Building-Products.com

May 2012 The Merchant Magazine

COMPETITIVE Intelligence By Carla Waldemar

Going green cultivates rosy future

O, THIS BUILDER walks into a bar, meets a man… and the punch line is, they decide to open a home center—a sustainably focused one, no less. But this is no joke—especially the fact that they pulled it off in this difficult economy. TreeHouse opened late last year in Austin, Tx. Now, usually I wait well beyond a few months before portraying a success story. But success it certainly is—business has multiplied five-fold in that short span. And, more to the point, the project had been on the drawing board ever since that meeting back in 2006. That’s when Jason Ballard, the builder from Boulder, Co., who’s now v.p. of sustainability (a biologist by training and environmentalist by passion) met up with an old college chum—groomsmen for each other and both originally from Texas—to collab-

orate in launching a green operation. They did their market research, then came up with a business plan and seed funding. While the two were visiting D.C. on business, Jason recalled another Texas buddy now working there and connected once again. When asked to sign on, his answer was “Absolutely!” He left his Wall Street job to become v.p. of marketing. They next approached a contact with a legal background, working for a high-priced San Francisco firm, who was looking for more satisfying employment. “He came with a fantastic reputation and dove in head-first,” says Jason. “That’s the way we grew, through friendships—people excited about the possibility, not just a business motive.” Why Austin? More market research revealed that it was the state’s birthplace of green building. Plus, the boys

from Boulder, D.C., and San Francisco were more than eager to return to good ol’ Texas turf. So, says Jason, “The decision made itself.” Okay, how about the site within the city? As you can guess by now, that, too, was not left to chance. “It was not, ‘If you build it…,’” Jason avers. “‘Location, location, location’ is not an adage for no reason. We looked for a part of the community that offered a demographic of thoughtful, educated people. We also looked for a major thoroughfare with high traffic. And a place with good neighbors, like Central Market, where we ended up taking over a former Borders bookstore site and remodeling it to LEED standards. Then, on October 22, we opened.” How did you spread the word? “Man! We’re still working on that! But mostly, through guerilla marketing: as guest speakers, at conferences, at the farmers’ market. We’ve used print mailers, groupons [Web coupons], radio, even billboards” to reach a customer base that caters equally to pros and weekend warriors. “We’re geared to serve both; The layout is d-i-y-friendly. But I had been a builder, so I also knew their needs as a pro. We offer delivery and installation, calling on our list of approved subs, plus a dedicated professional team” that includes everyone from certified interior designers to a solar engineer and a staff member with a master’s degree in architecture, among TreeHouse’s close to 30 employees. Jason adds, “We hired folks with a high level of education, not necessarily in this field, then trained them in green building—the salesmanship, the products—with one of the most thorough front-end programs I know of.” And it’s paid off: The feedback online, via Yelp and Facebook, has been positive, with raves like

OUT FRONT visitors to Treehouse are greeted by a massive rainwater collection system.

The Merchant Magazine May 2012

“extremely helpful, knowledgeable staff.” Plus, that kind of word-of-mouth marketing not only is the most effective kind, it’s also free. Contractors, however, notoriously drag their heels when confronted with something new and different, like this emphasis on building green. Jason finds he’s attracting two kinds of pros: those who are committed to green construction, and those pushed in that direction by their own, maybe more savvy, clients. For one and all, TreeHouse provides lots of education— not in a traditional showroom, but in a format Jason calls a hybrid, far from the endless aisles of products a la Depot. In each department there’s an Education Pod, where customers can interactively learn about choices in, say, countertops or flooring and keep up with new technical innovations. “But we also give the drawbacks of any particular product, so customers can make their own informed decisions,” Jason says, adding, “Kids love to use it, too.” The store also features an Idea Center, another key source of information. Here, classes are held for pros—in everything from financing to courses supplying AIA and Green Building Board professional development—and two

IN-STORE IDEA CENTER is a ready source of green product info and site of frequent seminars.

or three per week for the home consumer—on gardening, kids’ health, home cleaning, or energy-saving solutions. Products carried will always be a moving target. Jason, in charge of product stewardship, notes that his choices are based on four criteria: health, sustainability, performance, and core responsibility. “Curating the products is like curating art,” he says. “I’ve been at it for five years, and it’s always evolving. I’m still adding 50 products a month. We strictly limit them to products we ourselves would use in our homes.” And what about price? You dealers out there are well aware of the fable that green costs more. “And that’s just what it is: a fable, exactly!” Jason contends, and backs up his belief with a price-matching policy. “But we also teach customers the relative value of things. For instance, a linoleum floor is cheap, but you’ll need to replace it in Building-Products.com

three or four years. Spend 10% more on something that lasts 20 to 30 years,” he’ll counsel. Plus, “We do a good job of qualifying our customers,” he notes. (That’s just a fancy marketing term for finding their sweet spot.) A pregnant woman is concerned about her family’s health. An environmental fanatic is already convinced it’s the way to go. And both of them are willing to pay a premium for their choices. On the other hand, the average homeowner migh come in because his energy bill is killing him. “We’ll help him save money, and live healthier as a by-product. He’s moving in the green direction, whether that’s his intention or not.” Best-selling single item? Windows, without a doubt. But the best-selling category is floorcoverings. “We offer amazing prices, plus full installation. We have the best flooring selection in all Austin,” he can brag, adding, “Take off the blindfold… and it’s green!” TreeHouse is fast becoming known as the go-to place for anything solar, from a little-bitty product like a solar charger for your iPhone to a garden fountain, a generator, or even a whole-house system. By the way, even the coffee is on the green list, bearing fair-trade credentials. It’s there for architects and builders sitting down with clients to go over specs and blueprints and for contractors, who stop in for an early-morning jolt of java before hitting the jobsite. Ask TreeHouse if it faces any local competition and the answer is, not really. There’s a little mom-and-pop greenfriendly outfit selling everything from dinnerware to baby clothes, and another showroom taking orders, where folks cannot walk off the floor with their purchase. “We’re all in thig together,” in Jason’s view. And how often, we just had to ask, were Jason and his team snickered at as beyond stupid for opening in this sluggish downward turn? Yeah, he laughs, they were. “But the part of the building industry that’s growing is the sustainable slice of the pie,” he defends their choice. “A McGraw Hill study indicates that by 2016, green building will be five times bigger.” And today, folks are remodeling to save energy costs. “We educate them about the available rebates, too—local, state, and federal. We’ll print them out, help them fill in the form, even pop them in the mail. For instance, you can get 75% off a composter, or reduce your solar system bill by $10,000. And the staff are all very, very happy to work here. They believe in what they’re doing.’ And the feedback’s terrific. “Everybody loves the store. Eventually, as a business we’ll be profitable, but we’re not here for all the money we’ll make. We’re here as a vote for sustainability. And sales are up, so people also are voting with their wallets. Putting your money where your mouth is, is the most powerful tool—and we’re not yet done with putting the message out. “We’ve made a unique commitment to what matters—first to ideals, and then to making money. We’re not just another aesthetic,” Jason declares. “We’ve a different soul.” And that’s the kind of soul food folks clearly are hungry for. Carla Waldemar cwaldemar@comcast.net

May 2012 The Merchant Magazine

OLSEN On Sales By James Olsen

Double your business in 12 months

20 years, 100% of the groups I have worked with have grown their year-over-year sales. What does it take to double business in 12 months? The sales groups and individuals who grow the fastest:

paste. Program selling becomes easier and easier the more we do it.

VER THE LAST

Commit to Change.

Change can be difficult, especially when the desire for comfort is greater than the desire for sales growth. If we want to do things the same way and get different results, it just won’t happen. This goes for organizations as well as individual sellers. Many organizations have leadership logjams based on seniority, for example. Changing long-term leadership or lack of leadership can hurt. Magic words don’t grow sales; we must have systemic change. If we plan on selling the same way and just tweaking a couple things, we will not double our business.

Commit to Prospecting.

If we are waiting for our current account base to get busier, we are looking at 5% max growth! It just won’t happen. If we want to double our business in 12 months we are going to have to get “new business.” Let’s define prospecting: Prospecting is looking for brand new, never-sold-by-your-company-before business. Many salespeople and organizations are just moving accounts around or bringing old business back from the dead. This is not prospecting and will not bring the kind of change needed to double business. How much? If you are an experienced salesperson, two hours a week is a minimum. This is two hours of calling a pre-printed list or hitting a pre-organized list of businesses if you are in the field. This is not two hours with an hour and a half of looking things up on the Internet or driving around “checking for leads.” This is a focused two hours a week. If you are a journeyman or rookie, much more prospecting time will be needed.

Propose Big. Start Selling Volume.

To sell volume, we must talk to all of our customers in terms of quarterly, six-month, and year-long programs. This is essential with existing and new customers alike. Especially when we are the preferred supplier in a competitive situation (we are getting over 50% of the business), we absolutely need to propose programs to our customers for all the business. Once we have sold one program, it is time to copy and

The Merchant Magazine May 2012

Manage Accounts.

Comfort is the enemy of growth. Hanging onto C+ accounts while trying to construct an A+ sales career is lunacy, but many do it. We start by doing an 80/20 analysis of our accounts. Typically, 80% of our business is coming from 20% of the accounts we are working. When we understand where our business is coming from (and not coming from), we can begin to put our energy where we get the biggest return. Once the bottom 20% is split out, do another 80/20 analysis on that group. Anyone in the bottom 80% (who we have been working for over six months) after this split should be taken out of our rotation. We should do this individually. Sales managers should do this for their group if they are not doing for themselves (they are not). Although account management can be a contentious challenge for sales management, it is the best thing management can do for a sales organization. (Note to sales managers: Get the group to do this on their own and it will be a lot less painful.)

Push Our Best Accounts.

The best place to get business is where we are already getting business. Our best accounts are doing business because we are doing something, or many things, right. We must push them for more. Many sellers are afraid of upsetting their best accounts. Our accounts are expecting us to come to them with new and better solutions. When we bring them these solutions, we need to ask for more commitment from them.

Dream.

Think about it. Dream about it. Eat it and sleep it. Execute the steps and believe it, and you will double your business in 12 months. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Building-Products.com

THIS IS ROCKET SCIENCE

We pack a lot of technology into every fastener we make. A lot. Take a good look at a GRK fastener … a really good look. You’ll notice the precision of our threads, the consistency of our coatings and the razor-sharp tips. What you can’t see is the difference case-hardened steel makes and how much better our engineering is. You could just take our word for it … or you could try a few out. Maybe you can’t see the difference, but you can definitely feel it. They’re that good … and you know what, they’ll make you better.

800.263.0463 grkfas tener s .com

GREEN Retailing By Jay Tompt

Adapting to drought and deluge

has been weird and wild, but get used to it. It’s the new normal. Climate scientists tell us that weather extremes will be more common and that long-term patterns are shifting. This doesn’t just make the weather report on the evening news more interesting. Consider, for example, that shifting rainfall patterns can affect water supplies, livelihoods, and lifestyles. Some communities are facing drought—or worse—for the first time in living memory. Some places are seeing much more rain, and some are getting their rain or snow sooner or later in the season. Any of these changes can cause big problems for communities who fail to adapt. This is where dealers can come to the rescue. Changing weather patterns, whether drought or deluge, create opportunities to do good for your community and your business. For starters, educate yourself about water issues in your areas of operation. If you’re in a community already affected, you may already be aware of local and regional rainfall patterns and water supplies. If not, there are good resources online, such as www.noaa.com. Second, build your expertise in those mitigation and adaptation strategies your community needs. In a drought? Look into rainwater harvesting, greywater recycling systems, high-efficiency toilets, even composting toilets. (Believe it or not, collecting the rain that falls on your roof is illegal in some places, and residential greywater systems are not approved in all communities.) Read Rainwater Harvesting for Drylands & Beyond by Brad Lancaster, one of the nation’s leading experts, then share it with your staff. HE WEATHER LATELY

RETAIL DISPLAY of rain barrels.

The Merchant Magazine May 2012

If your community faces periodic deluge and flooding, there are short-term mitigation and longer term adaptations to evaluate, too. For example, in West Coast urban areas facing huge El Niño storms, rain barrels can help reduce the runoff that overwhelms storm sewer systems. Softening urban hard surfaces and hardscaping to allow for “slowing, spreading, and sinking” of rainfall, also reduces runoff and recharges aquifers. Permeable pavers, anyone? For flooding, dry flood-proofing measures and elevation may be viable short-term strategies for dealing with periodic flood risks in some instances. However, flood mitigation is a complicated legal and technical domain—do your homework before diving in. Once you and your key staff are prepared, start building stock and services around the solutions best suited for your community. Water conservation measures inside the home might be one category that works in every part of the country. And nearly all toilet manufacturers offer high efficiency toilets, but have a look at Niagara Conservation (www.niagaraconservation.com). They make it easy to source a range of water-saving devices, including their ultra high efficiency Stealth .08-gpf toilet. I’m also a big fan of greywater recycling. It’s still early days for residential systems, and most solutions are do it yourself or “green it yourself” projects, but this presents a wonderful merchandising opportunity. Pull all the right components into a robust display, along with the right tools, some books, and related products. Check out www.greywateraction.org for ideas. And catching the rain—it’s a no-brainer for many regions of the country. The key component is storage. The most innovative solution I’ve seen is RainTechnologies’ RainSpace. It’s flexible, capacious, and low cost. These kinds of solutions may require some thinking outside the box and a little extra effort. But they can earn LEED credits for your green builders, conserve water, and improve quality of life in your community. You’ll be doing well by doing good. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com Building-Products.com

He’s worried. And he should be. The SilvaStar ® guarantee means only the very best wood makes the grade – no exceptions. We’re so confident in the high quality, performance and great look of our primed fascia that no matter what topcoat you choose, we’ll extend our warranty to meet it. Call us at 604 264-6015.

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economy. Barr was renting the 23,000-sq. ft. space on 3.1 acres, which was purchased two years ago by a private investor. Barr continues to operate three stores.

Oregonʼs Lumber Products Files Chapter 11

Lumber Products, Tualatin, Or., has filed to reorganize under Chapter 11 bankruptcy protection. Founded in 1938, the wholesaler operates DCs in six western states, as well as importer Dansu International, Tualatin.

Sterling Adds Colorado Yard

Sterling Lumber & Investment, Westminster, Co., opened a new location March 26 in South Fork, Co., at a site formerly occupied by ProBuild. “Folks will see familiar faces when they come to buy goods here, because our employees were employed here

Barr Closes in Apple Valley

Barr Lumber, San Bernardino, Ca., held a liquidation sale and closed its 17-year-old store in Apple Valley, Ca., on April 13, blaming a poor

Old World Craftsmanship In Today’s Designs

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

HUFF LUMBER COMPANY SANTA FE SPRINGS, CALIFORNIA

800-347-4833

The Merchant Magazine May 2012

when it was ProBuild,” said Jim Gudenkauf, v.p. of Sterling Lumber. “All of our employees live in Rio Grande County, primarily in South Fork.” Operating as South Fork Lumber, the new yard is Sterling’s eleventh retail yard in Colorado. “Usually the company buys out existing stores, so starting from scratch was a little more time-consuming for us, but we are right on track,” said James Stephens, who serves as general manager.

New Mexico Stores Renamed

Roswell Lumber Co. has given its two retail yards—Roswell Do it Center, Roswell, N.M., and Artesia Do it Center, Artesia, N.M.—a new name: Builders Do it Centers. “Our history has always been one of change, innovation, and growth,” said Bruce Ellis, president and c.e.o. of parent Roswell Lumber, founded in 1902. “We wanted our brand to reflect that bright past and help us be ready for a brighter future.” Both locations were extensively remodeled and re-merchandised. Two new websites were also launched: www.builderdoitcenter.com and www.buildersknowledge.com. The company also operates Overhead Door of Southeast New Mexico and RLC Supply & Logistics.

Composite, Plastic Lumber Leads Decking Rebound

U.S. demand for wood-plastic composite and plastic lumber is projected to rise 13.2% per year from $2.9 billion to $5.4 billion by 2015, according to a new Freedonia Group study. Percentage growth will be driven by a rebound in construction expenditures from a depressed 2010 base. Composite lumber demand will grow 16% annually to $2.5 billion in 2015, while plastic will increase nearly 11% annually to $2.8 billion. Because composites incorporate recycled materials, they are often viewed as environmentally friendlier. Gains for plastics will be spurred by heightened consumer interest in its low maintenance properties, and manufacturers’ efforts to create plastic lumber varieties with more realistic woodgrain textures and surfaces. Building-Products.com

FAMILY Business By James Olan Hutcheson

All you need is trust “A

is love,” sang the Beatles. But if the Fab Four had been family business owners, the lyric should rightly have been written, “All you need is trust.” Family business members often profess their love for each other while withholding their trust. When they don’t trust each other, they don’t communicate and find it difficult to agree on a common direction. The result is a firm mired in toxic distrust, unable to discuss key issues, frozen in the face of crisis, and, all too often, sickly and short-lived. A Tale of Mistrust. Brown-Wilbert Co. is an 80-year-old Minnesota LL YOU NEED

company that builds burial vaults. It’s mostly owned by chief operating officer Christopher Brown, but controlled through voting shares by his father, c.e.o. Jerry Brown, who has worked at the firm since 1960 after marrying the granddaughter of the founder. The company has $20 million in revenues, a solid market position, and a wellestablished brand name. It’s also got a major problem with mistrust among the owners and top executives. The father-and-son executives have sued one another for a combined total of several million dollars, each claiming that the other has misappropriated

company funds for personal use or for investment in other ventures. The two swap charges of self-serving behavior, incompetence, malfeasance, inattention to duty, and other failings in court as well as in the local media. Will the company survive this battle? So far, Brown-Wilbert is bearing up. But similar struggles have destroyed countless other family firms. At the least, the mistrust has blocked communication, hindered cooperation, drained management attention, and consumed financial resources that would be better devoted to strengthening the company. For my purposes, however, the Brown-Wilbert case is a good one. It neatly demonstrates the risks and costs of mistrust developing in a family business, as well as most of the available varieties of mistrust and their most common sources. Kinds of Trust. Several varieties of trust are relevant to family business. First is trust in the competency of family business members. Other members have to be able to trust that their peers are trained, experienced and capable of discharging the responsibilities entrusted to them. That is a basic kind of trust, similar to the trust all business leaders must feel in the people who

work for and with them. Ethical trust is another essential. It’s vital that family business members can be counted on to behave ethically. This doesn’t mean merely following the letter of the law. It means following the spirit of the law and the principles behind the corporate code of ethics. In a family business, ethical trust also means trusting family members to put the interests of the family and the firm ahead of their own. When people have faith in one another’s reliability, that’s a different kind of trust. You can have the skills and ethics, but if you can’t be counted on to show up, you won’t win trust. Communication is the heart of trust. You can’t trust someone when you don’t know what he or she is thinking. Family members must be able to trust that they can talk about their concerns and be heard, and that others will talk about theirs in a similar manner. Trust in outsiders is uniquely relevant to family business. Family firms that can’t absorb people, practices and ideas from the outside will not live long. It requires trust in foreign concepts and people for that to happen. Building Trust. Building trust starts with communication. Family members must discuss candidly but

tactfully their thoughts, feelings and even dreams. Of course, communication is more than talking. It’s also listening. It’s hard to trust someone to look after your concerns when that someone doesn’t appear to be listening to you when you express those concerns. So encouraging and institutionalizing talking and listening are key to building trust. Family meetings are the most visible tool for building communication, although there are others. Talking the talk builds an element of trust, but walking it builds more. That’s why trust-builders must welcome genuine, meaningful participation by those with whom they want to share trust. Family members should be asked and encouraged to join in making significant decisions, even if just by gathering information or injecting an opinion. There are some things you should not do when trying to build trust. One is to trust blindly. It’s a mistake to believe that someone should naturally be trusted because he or she is a member of the family, without any proof that the person is, indeed, trustworthy. Likewise, don’t continue to trust someone who clearly, repeatedly fails to warrant it. In addition to setting the enterprise up for betrayal, bestowing

blind trust on the undeserving tells other family members that it’s not necessary to work hard to develop trust based on competency, reliability, communication, ethical behavior, and openness to outsiders’ efforts. On the flip side, don’t be too suspicious. When you monitor everything a family member does, you create an atmosphere of mistrust. Granting trust is a loose-tight proposition. Like holding a wet bar of soap, gripping too loosely allows it to fall, while gripping too tightly causes it to slip away. Limits of Trust. Trust isn’t a cureall and does have its risks. Trusting others doesn’t guarantee that they won’t disappoint you. And trust won’t overcome other management failings, weak markets, poor strategies, or just plain bad luck. But it does help. Without it, even superior management, markets, strategies and luck may come to nothing. From the perspective of family businesses, Elvis Presley may have come closer than the Beatles to the truth when he sang, “We can’t build our future on suspicious minds.”

– James Olan Hutcheson is managing partner and founder of ReGeneration Partners, a Dallas-based family business consulting firm. Reached him at (800) 4061112 or www.regeneration-partners.com.

MOVERS & Shakers

Elaina Jackson has been promoted to president and c.e.o. of Pacific Wood Preserving, Bakersfield, Ca., succeeding her late husband, Dick Jackson. Ken Laughlin was named executive v.p. Bob Bretz, lumber sales, Yakama Forest Products, White Swan, Wa., retired April 30 after 38 years in the industry, the last three with Yakama. Greg Moss, ex-Moss Lumber, has joined the sales team at The Mill Yard, Arcata, Ca. Rick Ingram has retired after 40 years in the industry, the last six in sales at Mary’s River Lumber, Corvallis, Or. Kevin Dodds, Joe La Berge, and Grant Phillips, all ex-Buckeye Pacific, have joined Collins Cos., Portland, Or., focusing on green DF and panel sales. Don Lampert, ex-North Pacific, is new to panel sales at Buckeye Pacific, Portland, Or. Brett Bleichrodt, ex-BlueLinx, has joined Weyerhaeuser, Denver, Co., as a dealer sales rep.

Jeff Logue has been promoted to division mgr. for Capital Lumber, Healdsburg, Ca., succeeding Jeff Howard, who has retired after 19 years with the company. Asa Johnson was promoted to division mgr. in Denver, Co., succeeding Steve Myrick, who retired after 22 years with Capital. Mark Jackson, ex-Bridgewell, is a new trader at Idaho Pacific Lumber Co., Vancouver, Wa. Jon Kimber, ex-Capital, is new to the sales and distribution division at Snavely Forest Products, Denver, Co. Rob Robinette, ex-Lumber Products, has been named product mgr. for McKillican International, Sherwood, Or. Kevin Pratt has been named sales mgr. of inland products for Konecny Brothers Lumber, Ogden, Ut., and will assist in exclusive sales for Goshen Forest Products, Eugene, Or. Jim Shaffer has rejoined Franklin Building Supply, Boise, Id., as window mgr.

Dan Scherber, ex-BASF, has rejoined Orepac Building Products, Tacoma, Was., as senior certified Tyvek specialist. Cherie Moorhead joined Nature’s Composites, Torrington, Wy., as area sales mgr. for Northern California and northern Nevada. Shawn Overholtzer, ex-California TrusFrame, is a new truss specialist for Simpson Strong-Tie, Stockton, Ca. Jaeson Fikse is new to door & window sales at Ganahl Lumber, Buena Park, Ca. David Bayles, c.e.o./president, Inland Builders Supply/Ace Hardware, Blythe, Ca., and Brennen Jeffers, general mgr., Sun Valley Do It Best Hardware, Deming, N.M., were honored as Young Retailers of the Year by the North American Retail Hardware Association. T.J. Rosengarth, Northwest Hardwoods, Tacoma, Wa., was elected a director of the Hardwood Manufacturers Association. Winsom Cash has resigned from Mungus-Fungus Forest Products, Climax, Nv., after striking it big in the state lottery, report Hugh Mungus and Freddy Fungus.

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

The Merchant Magazine May 2012

Building-Products.com

Capital Helps Tru-Dry Return

Mothballed since 2010, eight HeatWave Radio Frequency Vacuum Kilns are once again producing TruDry timbers. Capital Lumber, Phoenix, Az., has entered into an agreement with Craftmark Inc., McMinnville, Or., to exclusively manage the inventory and act as sales agents for Tru-Dry timbers. The brand was previously manufactured by Forest Grove Lumber, McMinnville. “We have been working for a while to obtain this technology,” said Denny Elmer, president of Craftmark. “With the technical oversight of one of the original operators of the RFV kilns and the sales acumen of the original salespeople who are now with Capital, we will be well prepared to bring Tru-Dry back to market.” Jim McCluskey, manager of Capital’s operations in Portland, Or., noted, “This is a great opportunity for Capital and a perfect pairing of resources. The Tru-Dry brand is well known, and there has been a noticeable void in the timber business without it.” Gene Secco and Ryan Williams, formerly with Forest Grove Lumber, have joined Capital in Portland to handle the inventory management and sales of Tru-Dry.

OSH Opens #4 in Fresno

Orchard Supply Hardware, San Jose, Ca., held an April 14 grand opening for its new store in Fresno, Ca.—the chain’s 88th store and its fourth in Fresno. According to manager Mike Ellis, the 50,000-sq. ft. store has a 7,700-sq. ft. garden center and features a newly designed store format with an easy-to-navigate layout and a new customer service center called Workbench.

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May 2012 The Merchant Magazine

IN Memoriam

Parley â€œBillâ€? Cherry, 86, retired founder of former Colorado Forest Industries, Denver, Co., died March 17 in Denver. During World War II, he served with the Army Air Corp. as an air cadet. Afterwards, he attended the University of Idaho and graduated with a degree in forestry. In 1983, he and his son Dan started CedarWest Corp., Lakewood, Co. Six years later, they moved to a new building in Denver and changed the

name of the company to Colorado Forest Industries. Mr. Cherry retired in 1999, and the company was sold to J.M. Thomas Forest Products in 2009.

Harry Barth â€œBartâ€? Palmer, 86, former general manager of Edward Hines Lumber, Lafayette, Co., died Dec. 16 in Broomfield, Co. After serving with the Navy during World War II, he attended Colorado State University and graduated with degrees in industrial forestry and general education. In 1975, he joined Edward Hines,

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serving as general manager for the next 12 years.

George S. Yates, 86, former vice president of Denver Lumber, Denver, Co., died March 3 in Denver. Mr. Yates joined the family business in 1952. In 1995, he was named Lumberman of the Year by Mountain States Lumber & Building Material Association.

Max C. Hittle, 83, longtime Colorado lumberman, died March 14 in Westminster, Co. Mr. Hittle had a 30-year career in the lumber industry, working for such companies as Lumber Yard Supply, Gene Wright/Dependable Lumber Co., Rounds & Porter Co., Slaughter Brothers Lumber, and Reid & Wright.

DEALER Briefs

Scarborough Home Centers, Scotts Valley, Ca., is opening a 4,200-sq. ft. Ace Hardware this summer in Carmel, Ca.

Orchard Supply Hardware

has backed out of plans to open a store in Tamalpais Valley, Ca.

Mitchell Hardware is opening a third, 7,000-sq. ft. Ace Hardware & Paint in Bend, Or. The chain also operates three stores in Washington. Mayson Ace Hardware has moved to a new location in Fresno, Ca.

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The Merchant Magazine May 2012

Home Depot opened a new 106,000-sq. ft. store with 35,000-sq. ft. garden center April 26 in Lodi, Ca. (Jessica Larsen, store mgr.). Depot will relocate its oldest Western region storeâ€”a 27-year-old unit in Fullerton, Ca.â€”on Aug. 30. Loweâ€™s relocated its Sparks, Nv., home center to a new 103,000-sq. ft. facility in E. Sparks and opened new locations Feb. 2 in Fairfield (Suzanne Mooers, store mgr.) and Mid-City Los Angeles, Ca.

Habitat for Humanity held a grand opening April 22 for its new ReStore discount home center in Simi Valley, Ca., and by June will move its Roseville, Ca., store to a larger, 30,000-sq. ft. space. Building-Products.com

Pacific Coast Buys Pioneer Builders

Pacific Coast Supply, Rancho Cordova, Ca., has acquired six-unit Pioneer Builders Supply, Tacoma, Wa. In business since 1960, Pioneer distributes roofing from locations in Tacoma, Bremerton, Tumwater, Kent, Seattle, and Bellevue, Wa. One of several divisions of Pacific Coast Building Products, Pacific Coast Supply also operates yards under the banners Anderson Lumber, Diamond Pacific, P.C. Wholesale, and Weyrick Pacific.

Ex- Sawmill Worker Pleads Guilty

A former worker at Stimson Lumber, Portland, Or., has pleaded guilty to aiding the transportation of stolen lumber. According to court records, Trevor Mokry was responsible for loading and unloading trucks at Stimson’s mill in Plummer, Id. He admitted entering into an unauthorized “mill direct” sales arrangement with Pallet Place, Spokane, Wa., which paid him $581,000 for the stolen lumber between June 2007 and June 2011. Mokry loaded Pallet’s truck and received a check from the driver. The charge is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Sentencing is set for July 16.

SUPPLIER Briefs

Meyer Moulding & Millwork, Modesto, Ca., has temporarily discontinued production, but continues selling from inventory. Owner Jeff Meyer hopes to restart operations if new financing can be found. Compass Lumber Products, Cotati, Ca., is winding

down operations after 34 years.

Bow Hill Mill, Burlington, Wa., has resumed operations

at its cedar mill.

Emerald Forest Products, Emmett, Id., hopes to restart its sawmill May 15 and ramp up to full capacity within four months. The faciity has been idled since April 2011.

Sunset Moulding Co., Live Oak, Ca., has installed a new moulding and finishing line at its plant in Idabel, Ok.

CertainTeed’s roofing plant in Portland, Or., has achieved ISO 14001 certification.

Amber Flooring, Emeryville, Ca., is now distributor of Coswick Hardwood’s solid and engineered flooiring in

Northern California.

Dunn-Edwards’ new 336,000-sq. ft. paint manufacturing plant in Phoenix, Az., received a real estate & development award as best industrial project from Arizona Commercial Real Estate. National Nail Corp., Grand Rapids, Mi., launched a new website—stingerworld.com—to promote its Stinger cap systems. Anniversaries: Beach, Ca., 10th.

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Straight Line Transport, Huntington May 2012 The Merchant Magazine

Home Depot Opens Biggest Store in the West

An April 14 grand re-opening celebrated the transformation of Home Depot’s store in Anaheim Hills, Ca., into a new 205,000-sq. ft. superstore. The first of its kind in the West— Depot’s only other superstore is located in Union, N.J.—the new facility was created by combining the original store and an adjacent Kmart that had been empty for years. The store has a new layout with three main sections: home improvement supplies on one end and in the back, home design in the middle, and outdoor/garden on the other end. A large counter dedicated to returns has its own room and corridor, near one of the entrances. A large customer service area located in the center of the store features a central counter and a waiting area with armchairs. Trade professionals such as interior designers can meet with clients in transparent but enclosed meeting rooms near the tile displays. Contractors have their own service counter near a door where they can pull up their trucks and load their purchases. Other new features include free wifi, 50 additional employees, expanded

CUSTOMER SERVICE center sits at the heart of Home Depot’s new superstore.

appliance and bath showrooms, a shower gallery, more kitchen cabinet displays, an outdoor living showroom, more rugs and other home accessories,

more hardware, and more space for tile, wood and laminate flooring. No other superstores are currently in the works for the West.

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The Merchant Magazine May 2012

Building-Products.com

NAWLA 2012

SPECIAL FOCUS BY THE NORTH AMERICAN WHOLESALE LUMBER ASSOCIATION

• Lumber Industry Recruitment • Selling to Newly Acquired Companies • Traders Market • Personality Conflicts with Sales Accounts • Managing Multi-Generational Teams • Funding Working Capital Building-Products.com

May 2012 The Merchant Magazine

NAWLA 2012 By Swaraj Pandey

NAWLA Education Foundation Course:

A firsthand account

NAWLA E DUCATION Foundation, or “NEF,” was started by the North American Wholesale Lumber Association in 2011 to educate, inspire, and plant a new generation of leaders throughout the forest products industry. NEF collaborates with universities to offer students engaging coursework, exciting field experiences, and practical internships in the lumber distribution field. The first NEF class was held at the University of Wisconsin-Stout in January. Twenty-one students spent one week learning about the complexities of the lumber supply chain and what the industry offers as a career option. The students are now eligible for internships with NAWLA members. The article below is a firsthand account of the program from one of those students, Swaraj Pandey: HE

The construction department at my college, UW-Stout, paired with the NEF to offer a course that is a great fit for students in a broad range of majors. By enrolling in this course, students qualify for an intern opportunity with NAWLA members. In fact, to qualify for the internship, a student must complete this intensive, threecredit course focused on the lumber, building material, and supply chain. The course consisted of lectures, field trips, and case studies. The first day of the course started with a brief introduction related to the course requirements and schedules. We learned about forest ecology, ecosystem services, forest succession, and forest regeneration under natural and managed scenarios. Additional lectures were given on forest management and harvesting, including forest

STUDENTS from University of Washington-Stout visited woodlands and production facilities during a five-day course co-sponsored by the NAWLA Education Foundation.

The Merchant Magazine May 2012

certification. Later in the afternoon, we went for a field trip to the school forest in Bjornson Education-Recreation Center. The center has 443 acres of land. We were accompanied by a local forester who displayed extensive knowledge of forestry. We observed the principles of forest ecology, forest management, and harvesting. The property was a mix of northern hardwoods (maple, oak, ash, basswood, yellow and white birch) and coniferous plantations (red and white pine, spruce) with stands of poplar. The forest management plan included select hardwood cuts, pine plantation thinning, aspen cuts, oak regeneration, and timber stand improvement projects. On the second day, we went for a two-hour virtual field trip to Andersen Windows in Bayport, Mn. We were able to look at step-by-step processes where several home projects were in progress by top builders. Andersen Windows uses 98% of their raw materials and develops long-lasting products that have a minimal adverse effect on the environment. Over 70% of their wood is sourced from forests certified by the Forest Stewardship Council and the Sustainable Forestry Initiative. It was an impressive tour packed with useful information. The third day included a tour of Weekes Forest Products, a major stocking wholesaler. We toured their reload center and learned about a wide variety of lumber, panels, engineered wood, industrial products, and related specialty building products. Our next destination was Viking Forest Products, Eden Prairie, Mn., distributors of OSB, plywood and softwood lumber products. Viking’s business Building-Products.com

CAREER PANEL allowed professionals to share with students how they chose the lumber industry.

model stresses a reliable supply of the right product, on time, at a fair price. They also gave us some hands-on work experience with the customer, which everyone thoroughly enjoyed. Next stop was the Silverwood Park Visitorâ€™s Center in St. Anthony. The main purpose of the building is to showcase and promote sustainability, while reducing day-to-day operating costs. The building is a 2009 Woodworks Design Award winner for its innovative structural use of wood. Next we went to Bethel University in Arden Hills and explored the George Brushaber Commons building, which has a 6,500 sq. ft. green roof that incorporates a water retention system. We learned about their use of glulam beams, purlins, and wood decks, which gives the place a warm appeal and timeless aesthetic. We also learned about the challenges faced in constructing this space, necessitating the design of twoway cantilevered roof framing that extended outside of the building envelope. This building is also a 2009 Woodworks Design Award winner for innovative structural use of wood. In the last two days of the course, we spent most of our time in the classroom learning about various aspects of the lumber business. The basics of logistic and supply chain management were taught in terms of wood and building materials. We had discussions based on the current issues that are prevalent in the corporate world and the importance of having industry associations. Construction systems and wood use in non-residential construction area was our focus in a class comprise mostly of construction and engineering majors. We learned about evolving markets for wood-derived energy and bio-chemicals. Discussion with the various members of the career panel was held at the end of the course. These professionals shared their life stories and their path towards the lumber industry. It was very inspiring because each of us could relate to what they were talking about. At the end, we had the chance to ask questions of each panelist.

The Merchant Magazine May 2012

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Overall, this course provided students with a perfect platform that inspires us to get involved in the lumber industry in the long run. I have very positive impressions of the course and the industry. My major is business administration with an emphasis on supply chain management/quality management. I have always been curious to learn more about logistics in lumber: from logging to readiness for use as structural material for construction or wood pulp for paper production. Many recent graduates are not familiar with the lumber business or the opportunities it offers, but this industry offers a wide range of professional opportunities in both private and public sectors. It is a multibillion dollar industry that is both high-tech and environmentally conscious. The wide focus of the professional training, with its emphasis on organization and management, offers extensive job opportunities inside the lumber industry. There are many possibilities for further professional development as graduates can progress to higher management positions within a few years of experience. Students like me have the opportunity to work at a variety of companies, contributing in such areas as accounting and finance, marketing and sales, management, engineering, and logistic operations. This five-day course has given me an opportunity to work with NAWLA as its marketing intern, which itself is a big achievement. Coming from a business background with little knowledge about the lumber industry, I now have the chance to learn more about this industry from the ones who know it the best.

As far as recruiting students to this industry is concerned, companies are responsible for promoting the lumber industry and providing career awareness for students who are graduating or have graduated. Surveys continually show that there are more jobs available than there are graduates to fill them in this sector. Companies have to seek top, qualified students who will be motivated and excited to contribute to businesses within the industry. Brand positioning is one of the strategies that the companies can focus on, by selling the companyâ€™s values to prospective job seekers. Companies should hold seminars and educational conferences so that they can have better communication and feedback with the students. Career fairs are one of the most important events in a college. Companies need to attend these fairs and interact with the students by providing career awareness and opportunities related to the forest product industry. Programs like NEF are blessings in disguise for the lumber industry, which is going to attract a lot of new graduates to become the industryâ€™s future leaders.

â€“ Companies interested in more information on internships should visit www.nawlaeducationfoundation.org. Building-Products.com

May 2012 The Merchant Magazine

NAWLA 2012 By Ken Schultz, Blue Book Information Services

Financial pitfalls of selling to newly acquired companies

OMPANIES ARE ON high alert today when it comes to closely watching their trading partners’ purchasing patterns and pay habits. The challenging economy and a continued tight lending environment have only served to increase pressure on creditors to be vigilant in looking for warning signs from customers, such as changes in orders or an increase in delinquent pay. Perhaps the most significant concern is when a longstanding customer is sold to new owners. Immediately, relevant questions leap to mind: Will my current invoices be paid in full and on time? Will the new ownership continue to buy from me in the future? Of equal significance are details frequently overlooked—the what, who, and how—concerning a change in ownership. What was actually acquired by the new owner(s)? What is the legal structure or formation of the new company? How did the buyers fund the purchase? And, often most importantly, what is the experience and background of the new owner(s)? The following sections will illustrate how careful, proactive due diligence should uncover the answers to these and other essential questions.

What: The legal formation of the company

The first step in determining the legal structure of a newly acquired business—and how different it may be from the original entity—is knowing whether it is a partnership, S or C corporation, proprietorship, or limited liability company. This designation plays a crucial role in understanding the liability of the new owners and, most notably, their personal liability, which can affect the creditworthiness of the company. The following scenarios illustrate the potential impact of a new owner on a firm’s creditworthiness:

The Merchant Magazine May 2012

• The former company was a partnership or proprietorship, and so is the new business Since the assets of the owner(s) in a partnership or proprietorship are subject to creditors, knowing the personal financial strength of new ownership is essential to establishing the strength and liquidity of the company. • The company was a partnership or proprietorship, and is now operating as a corporation or limited liability company If a partnership or proprietorship’s assets are purchased and incorporated, most likely, certain personal assets (i.e., a home, retirement accounts, etc.) of the former owner will not be included in the sale. If this is the case, the liability of the new ownership is limited to the actual assets purchased and placed into the corporation. As such, the amount of assets available to creditors will have diminished; knowing which assets were transferred into the new corporation will help determine if the new company’s balance sheet is as strong as before the purchase. • The company operated as a corporation and the purchase included all outstanding capital stock of the organization In purchasing all capital stock, new ownership acquires all assets and liabilities of the former owners, which are then subject to creditors’ rights.

How: Details of the purchase

In addition to understanding the new company’s legal structure, it is also advisable to know how the purchase was financed. Some new owners may not publicize details of the acquisition, but this information may have direct impact on the company’s creditworthiness going forward. Understanding the new firm’s financing will verify any impact it may have on its financial position. Since most companies are corporations, the following illustrations assume the purchase was for the former owner’s capital stock: • New owner(s) bought the company using personal finances The company itself does not incur any debt and there is no direct impact on its equity position. It should be noted, however, if the new owner obtained personal financing to buy the stock, the lending institution likely would require collateral to be posted against the loan—and business assets are often pledged as collateral. • New owner(s) borrowed money from a financial institution for the capital stock and will retire the (treasury) stock The company’s balance sheet shows an increase in liaBuilding-Products.com

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bilities by way of long-term debt, with a corresponding negative entry on its capital statement, creating a negative effect in overall equity position. • New owner(s) financed the purchase of capital stock through a note payable to the former owner(s) A payout agreement is signed, requiring installment payments to the former owner(s). Similar to bank financing, this creates long-term debt affecting the liability section of the balance sheet. With the addition of

The Merchant Magazine May 2012

debt, the overall equity of the company can be impacted. Keep in mind, with the last two scenarios, adding debt to the company’s balance sheet can have an effect on its working capital position as well.

Who: The new ownership’s vision for the company

Another more tangible aspect of an acquisition concerns how new owner(s) will manage and operate the company. When a business changes

hands, there is no guarantee the new owners will handle day-to-day operations in the same manner as their predecessors. The following questions need to be answered to determine whether to continue doing business with the company: • What is new ownership’s vision for the company? Oftentimes, new ownership may look to expand the company’s focus to include new product offerings, obtain new customers, or change buying and/or selling strategies. Expanding a product line may be detrimental if the company has no experience in that particular business segment. Adding new customers is generally a focal point of all companies; however, the quality of new accounts may impact you and your business. For example, if new accounts are slow in paying, it could have a domino effect on how fast you are paid. • What is the background of the new owners? An essential question to consider prior to continuing your association with an account is the industry-related management experience of the new owners. Consider the following questions about the new ownership when making this determination: * Do they already own an established company within the industry? Creates the highest confidence level with a solid track record of experience, trading practices, and financial strength already known throughout the industry. * Were they a key part of former company’s senior management team? Examples include a former officer such as c.f.o., c.o.o., or vice president of operations with several years experience. Generally, these individuals were an integral part of the company through leadership and decision-making responsibilities. As such, they are more likely to lead and manage business relationships successfully. * Were they a key part of former company’s operations or sales team? Examples include a former general manager or vice president of sales, already known to your company. However, given these individuals probably did not have measurable control over how the company’s finances were handled, payment procedures and finances of the new firm should be Building-Products.com

closely monitored. * Is this a succession of next-generation family member(s)? It is important to know which family member will be taking control, along with his/her previous role and tenure within the organization. For example, a family member who had an integral role running daily operations over several years versus one who only recently joined the company could have a vastly different effect on the business. * Do they have little or no industry background and experience? The lumber industry is unique unto itself and though a lack of specific experience doesn’t mean a company’s

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performance will be adversely affected, lacking an industry track record is an element of uncertainty that won’t show up on a balance sheet. When owners without industry experience take over, you must consider their experience in other industries and meet with them personally. Additional questions to ask: Are the new owners actively committed to their customers, suppliers, and the industry? Are they asking the right questions, interested in learning, or acting as if they already have all the answers?

Much to consider

Whenever a company is sold, there are many factors to consider in determining whether to continue or scale

back your working relationship. Questions about structure, ownership, finances, and background are essential and must be answered. Blue Book Services uses these very questions and subsequent answers to determine if an existing rating will continue following the sale. You, too, can benefit by asking these questions, or at minimum, obtaining an in-depth Blue Book business report as a necessary step in your due diligence. – Ken Schultz is v.p. of rating services at Blue Book Services, a leading credit and marketing information agency for the lumber industry. He has over 20 years experience with Blue Book and is a certified credit executive. Contact him at (630) 6683500 or kschultz@bluebookservices.com.

May 2012 The Merchant Magazine

NAWLA 2012 NAWLA Traders Market

NAWLA Traders Market returns to Chicago

RADERS MARKET will be returning “home” to Chicago in 2012 after spending a year in Las Vegas. It will be the sixth time the show is held in Chicago, giving it a familiar feel to many attendees. The 2012 Traders Market will be held November 7-9 at the Hyatt Regency Chicago. Since 1996, Traders Market has held a unique position among lumber and building material tradeshows since it is the only one that is focused almost exclusively on the lumber supply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers.

The Merchant Magazine May 2012

This focus on supply chain partners has fostered an unrivaled atmosphere for networking. In today’s global marketplace, Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million dollar deals are still made with a handshake, that personal networking is invaluable. At time when many tradeshows are struggling, Traders Market continues to grow. Overall attendance in 2011 increased 11% from 2010, with almost 1300 attendees from 10 countries. As in 2010, the attendee profile was almost evenly split between wholesalers and manufacturers. “We are proud that Traders Market

has solidified its place as the tradeshow you can’t afford to miss,” says Gary Vitale, NAWLA c.e.o. and president. “The lumber industry may be struggling, but the companies who attend the show can help position themselves for success.” The 2012 show will follow the successful and popular format from the last couple of years. The floor show will be open on Thursday and Friday, allowing attendees to enjoy Chicago over the weekend or return home. Other recent additions, such as the Product Showcase, will also return. One big change this year is that NAWLA has added new membership categories that will also be able to attend the show. Of special note is that timberland owners and architects are now eligible to be associate members. Their presence at the show will increase the number of timber providers and product specifiers. Lumber mills who exhibit will benefit from having both their suppliers and end users attend. “Traders Market has become one of the best values in the lumber industry,” says Vitale. “In fact, the fees have remained the same since 2008, at a time when the cost of just about everything has gone up. We want the attendees to know the show is there to serve them.” The Traders Market website— www.nawlatradersmarket.com—has complete information on the schedule, fees, floor layout, hotel reservations, and sponsorships. Registration has already opened for exhibiting companies and individual attendees. Once again, registration will be exclusively online. Building-Products.com

NAWLA 2012 By Herb Greenberg, PhD, and Patrick Sweeney

The vital tension:

Managing multi-generational teams

recent Fortune article penned by Colleen Leahy, more than 13 million workers will be 65 and older by 2022. That’s up 7.3 million from today. Currently, more than one-third of the U.S. workforce is made up of Baby Boomers. What role does the ongoing presence of post-retirement-aged workers play in the effectiveness—and the motivation – of intergenerational teams? The dynamic of intergenerational teams—those workgroups made of employees from more than one generations—can be either a source of conflict or can lead to cooperation, collaboration, and a more balanced and productive team. For leaders, the differences that intergenerational teams bring to the workplace can be an asset in creCCORDING TO A

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ating a varied idea exchange leading to greater innovation. CBS Money Watch recently quoted a blog post by Careerealism, a career management blog: “By having a multi-generational workforce, blind spots can be avoided to a large degree. A clear example is the issue of technology. The young bulls (of either gender) want to have technology, technology, and more technology. The older bulls (of either gender) can put a quash on making the company technology based for technology’s sake. This vital tension means that essential technology will be implemented, but non-essential technology will not—at least ideally.” Also, younger workers are more likely to take risks that can benefit the company if there is a safety net of older workers to catch them if they fall. Conversely, older workers can rapidly fall behind the times and be beat by competitors if they don’t keep up. A multi-generational workforce lets each generation do what they do best, without a fear that something will be missed. This leads to greater creativity and a better flow of ideas within the company. This vital tension creates an opportunity for team members, of all ages, to share their own unique perspectives, work to their own strengths, approach each problem differently, and offer solutions that may have not been considered before. So as a result, among those differences lies a common ground: the common project or company goal toward which each team member strives. And each team member is pivotal in balancing out the other. Understanding that each person’s personality creates a gateway into their work style and problem-solving methBuilding-Products.com

ods, regardless of generation, should be encouraged. A focus on individual personality, and the personality dynamics of a team, as opposed to generalizations about groups, is the foundation for unleashing the power of diversity in the workplace. Unlocking the inherent strengths of each team member can provide an opportunity to create a work plan that can further drive success in a multigenerational team. In fact, Jennifer Deal, author of Retiring the Generation Gap: How Employees Young & Old Can Find Common Ground, suggests that people from different generations have surprisingly similar values for what they seek at work. She found consistency in wanting credible and trustworthy leaders, little change, and someone to coach them. So if we all tend to hold similar workplace values, what may cause the “tension” may lie in “how” this is accomplished and in the “who” of personality dynamics. Understanding generational differences in “how” people approach work, coupled with an understanding of who people are and what motivates team members, is likely to increase acceptance of others and provide a framework to take individuals and create a team. Further, we all get older, but our generational cohort remains. Older workers tend to report higher levels of overall job satisfaction and commitment. Research in the 1970s and 1980s, before Generation X was working, showed evidence of negative stereotypes and attitudes towards older workers in general. Since we will all age as we work, the importance of understanding our generational cohort, intergenerational differences, and our own personality strengths becomes critical to alleviate age-related stereotypes of our teammates that could result in a dysfunctional or an underperforming team. This type of discussion facilitates team development. The important thing to know about team development, especially in a diverse team, is that nothing is a quick fix. Teams are dynamic. Individuals come and go, develop their own strengths, age. Goals and objectives will change over time. Development must be ongoing— it should begin with the current team or at the time of hire and continue Building-Products.com

throughout the company indefinitely. It isn’t until the company embraces team development as part of its culture that a team can be truly effective. For example, perhaps your team meets once a month to go over both past and upcoming projects and how they efficiently moved forward or were delayed. By recognizing personality differences, the team may realize efficiency was strengthened or weakened by clashing personalities. The team can then go over its strengths and come up with creative processes or strategies, together with their manager, to ensure that the team works even more effectively moving forward. When leaders present such processes as growth opportunities, it will help to engage employees. Team development can be customized and tied directly to company goals and objectives—both for revenue growth and employee retention. The implications from the Fortune article are endless, but there is one thing for certain: no matter the company or the industry, in cases where employees are working in multigenerational teams, it’s imperative to implement team development programs. Leaders must understand who makes up the team, from not only a generational perspective, but also from a personality perspective, and use those insights to understand what each individual brings to the table in order to get the most from the team as a whole. With regard to organizational strategy, it’s important to pinpoint potential team issues before they become detractors of productivity—which is why leaders should foster regular team discussions around projects goals and outcomes. Older employees can offer endless value and experience to their teams, and younger workers coming into the workforce can bring fresh perspectives on age-old processes. Keeping up in a world that changes minute by minute requires an investment in the people who will take the company forward— as well as an understanding of how each unique individual contributes to the bottom line, regardless of age.

– Herb Greenberg, Ph.D., is the founder and c.e.o. and Patrick Sweeney is president of international management consulting firm Caliper, Princeton, N.J. Reach them via www.caliperonline.com.

,1752'8&,1* %& &211(&7Ŭ 72 +(/3 <28 0$1$*( 6$/(6 BC CONNECT™ is the new integrated 1-stop online portal with everything you need to manage your EWP business in one place and instant access to your entire design and business management platform. It’s packed with features like fast project starts through universal data entry, plans, specs and other details uploaded from remote locations, and quick, accurate formula-based estimates. Scan the QR code or click www.bc.com/bcc09 to view a short video, or call your Boise Cascade Area Manager, or Boise Cascade EWP Software at 800-405-5969.

Great products are only the beginning.

May 2012 The Merchant Magazine

NAWLA 2012 By Robert L. Turner III

Funding working capital in the new economy

Take control of your destiny

enjoyed unprecedented growth during a decade of economic expansion, which peaked in the first quarter of 2006. Quarterly GDP growth, housing starts, and the U.S. banking system decelerated like a wild roller coaster in 2007 and 2009. Executives who engineered survival strategies should be given gold medals. Instead, their reward is a new challenge to fund the working capital required to finance the inevitable industry recovery amidst a changed banking system. There is a silver lining to every cloud. Adversity breeds innovation. A glance in the economic rear view mirror serves as a shocking recognition of the realities of the “New Normal” economy. Business owners may be in the hot seat, rather than the driver’s seat, in financing growth needs. Success starts with a mindset shift toward internally generated cash to reduce outside funding needs (better positioning a firm as a candidate for funding) and awareness of innovative new funding to align needs to solutions. HE BUILDING INDUSTRY

Economy of the future: “New Normal”

Some 437 banks have failed since 2007. This includes 306 in 20092010, 92 in 2011, and 11 in first quarter 2012. The FDIC placed 844 of the remaining 7,436 banks on a watch list near the end of 2011. Trepp LLC’s 2012 Banking Sector Outlook categorizes 218 banks as representing a high

The Merchant Magazine May 2012

risk of failure. Reuter’s “Credit Crunch an Unusual Ally in U.S. Lumber Rally” (March 14, 2012) indicated distributors are having trouble buying lumber in the tight stocks environment and—unable to get capital from banks—are buying futures. This is continued evidence of the lingering bank credit crunch of recent years. Bloomberg BusinessWeek’s “Why Small Business Can’t Get Financing” (Sept. 2010) highlights severe financing challenges faced by small businesses. The top concern of small businesses is access to capital. More than 50% felt they could increase sales with additional financing. The Chicago Tribune’s “Sluggish Economy Feels Like New Normal” (June 12, 2010) suggests economic sickness beginning in the financial

system lingers in the economy a long time. This creates a long sluggish period with high government debt, slow economic growth of 2% to 2.5%, and sticky unemployment. This lasts so long, it begins to feel “normal.” These factors and unemployment drive housing starts, which create demand for building materials. Starts peaked at seasonally adjusted 2,273,00 in January 2006 and hit the trough of 478,000 in April 2009. This is decline of 79% and the worst activity level since 1959. Starts were 610,000 in 2011, and are projected to be 678,000 in 2012. Putting this in perspective, starts did not drop below 1 million any year between 1960 and 2007! Companies survived this Great Recession by liquidating assets, stretching payables, and slashing overhead. The U.S. recession technically last 18 months, from December 2007 through June 2009. However, housing and building products lag overall economic recovery. Building products faces the “Great Hangover.” Next? The welcome, but painful, need to finance working capital for growth. Given the lingering pain within the banking industry, fresh funding approaches are mandatory.

Building Products: Preparing for the roller coaster’s “third turn”

The industry’s wild roller coaster decelerated at “Turn 1” in the third Building-Products.com

quarter of 2008 with financial market turmoil, a business failure epidemic, and GDP growth of -6%. This was a dramatic fall from 5.1% GDP growth in first quarter 2006. Turn 2 began in 2009 as housing starts plummeted 79% from the January 2006 peak, and continues as firms hold on for survival pending economic recovery. The long-awaited Turn 3 is showing recovery signs of the market turning upward. Turn 3 presents a new challenge, one of funding growth driven by long-term housing demographics. Banking’s loss-driven aversion to housing-driven businesses is a challenge. If housing starts double from around 610,000 in 2011 to 1,220,000 within a few years, which is possible, the industry’s working capital needs will also double. Executives face daily sales, operations, employee, and financial challenges. Cash is the “fuel” required to operate a business. Without it, the business stops.

Six steps to funding working capital & taking control of your destiny Step 1: Shift Mindset to Prioritize

Financial Concepts Countless books bombard executives with magical solutions for improving working capital. There are no silver bullets. There is no substitute for disciplined executution of basic concepts. How and where should companies focus on financial priorities? The simple I, D & A approach: Inside the company. Down the financial statements. Across the order-to-cash cycle. This results in both operational and financial discipline producing and profitability. Focusing “inside the company” generates cash before relying on loans. Concentrate on what you control. Companies will generate more cash and/or become a better candidate for subsequent financing alternatives. Step 2: Look Down the Balance Sheet for the Greatest Cash Opportunities. Think of the 80/20 rules. Which 20% of balance sheet items provide 80% of the cash generation opportunity? Receivables, inventory and payables are obvious targets. Step 3: Look Down the Income Statement for Profit Margin or Building-Products.com

May 2012 The Merchant Magazine

Figure 1

Cost Improvements. Opportunities to improve profit margins and/or reduce operating expenses, albeit even by small percentages, produce significant benefits. Step 4: Use the Statement of Cash Flows to Understand Working Capital Requirements. Cash, not net income, is king! This important, grossly underutilized tool reconciles net income to net cash. Step 5: Look Across the Order-to-Cash Cycle to Tighten Costly Process Gaps. CFO Magazine’s “Working Capital Scorecard” (June

The Merchant Magazine May 2012

2011) benchmarks working capital across many industries by using a Days Working Capital (DWC) measure. DWC is comprised of days of sales outstanding in accounts receivable (DSO), plus days of inventory on hand (DIO), less outstanding accounts payable (DPO). (Note: Many firms use cost of goods sold in lieu of sales for both inventory and payables calculations.) Figure 1 (above) illustrates the working capital intensive nature of building products businesses, and distributors. What does 53 days of working capital outstanding mean? Example: A building materials business with $60million annual sales, divided by 360 days, generates

Building-Products.com

$167,000 in sales daily. A one-day improvement in DWC is worth $167,000 in working capital. The 53 DWC days multiplied by $167,000 equals $7,651,000 in net working capital funding. Most businesses suffer from process linkages and inefficiencies across the order-to-cash cycle, such as billing delays, which add working capital needs in addition to the DWC calculation above. Accounts receivable is a large, critical working capital improvement lever. Why? Receivables are the “closest to cash” asset, and can account for up to 40% of assets and half of the net working capital investment. Waiting 35 to 45 days for payment is problematic enough, but there is also the risk of non-payment loss. Inventories are equally important. Both receivables and inventory must serve as a solid collateral base for working capital loans. Poorly managed receivables and inventories are not attractive to funding sources. Step 6: Seek New Funding Options Available in the Market. Success with steps 1 through 5 positions any business as a stronger candidate for traditional or new funding solutions. Internally generated cash results in a “cleaner house” with more efficiently managed capital assets and quality lender collateral. Financing sources prefer to fund growth of a well-run company, rather than funding the clean up of old problems. In a market with more aversion to risk, tight underwriting standards, and limited funding, firms with wellmanaged working capital assets have more success with financing.

Working capital funding alternatives

Business owners have many options. Each is designed to meet different needs, and each has both pro and con tradeoffs. Types of traditional working capital funding include: • Bank Line of Credit (LOC) This has been common for established businesses with strong credit, quality assets, and solid cash flow. Small businesses are challenged to secure this type of funding in today’s banking environment. • Asset Based Loan (ABL) ABL loans may be a fit for highly Building-Products.com

May 2012 The Merchant Magazine

seasonal businesses with detailed historical financials and significant assets, which may be tightly monitored. Lenders today are concerned about valuation of collateral. • Equity This works if the owner is willing and able to invest significant personal assets in the business, and/or take on new partners. However, it is often the most expensive type of financing. • Factoring of Receivables or Purchase Orders Factoring can be an expensive funding option, albeit with advantages for early stage or high growth businesses with quality accounts receivables or purchase orders. • Equity Investors and/or Sale of Your Business: Many private equity investors are warming up to investing in building materials related firms. “Building Products Manufacturers—A Mitigated Strategy to Invest in the Distressed Real Estate Market” (March 15, 2012), by Don Walker, John Burns Real Estate Consulting, is encouraging. He indicates that an investment in building materials manufacturing allows one to bet on the recovery without the complexity of investing directly in distressed real estate. “M&A: 2011 Review & Look Ahead,” by BMO Harris Bank’s Engi-

The Merchant Magazine May 2012

neering & Construction Group, sees a large buy-side demand in the market. FMI’s Porter Wiley, managing director of the Building Products Practice, reports seeing lots of demand on the buy and sell side. Both sources, along with others, indicate the challenge is multiples not being in line with historical averages due to depressed EBITDA. An improving housing market should alleviate this to enable more M&A activity in 2012-2013. Economic adversity also breeds innovation, in the form of new types of funding. “Entrepreneurs Turn to Alternative Finance” (BusinessWeek. com, Sept. 2009) indicated that assetbased lenders, factors and others are filling the void created by banks tightening lending standards. Focus on accounts receivable first is paramount. Why? Business trade credit in the U.S. is 1.5 times larger than the commercial bank loan market (Credit Research Foundation, 2009). For building products firms, accounts receivable is one of the largest, controllable and the closest-to-cash asset. • Professional Collection/Receivables Management Firms like Chicago-based Brown & Joseph combine the latest credit intelligence technology with professional resources typically unavailable to smaller firms. Businesses are utilizing outsourcing-type solutions to more effectively manage accounts

receivable collections and reduce overhead expense. • Sale of Old or Written Off Receivables All firms have sustained uncollectible accounts receivable accounts resulting in charge-offs to bad debts. Brown & Joseph offers a program to evaluate these old receivables free of charge and pursue collection of same based on pure contingency fees. This can be “found cash.” • Business Line of Credit (Business LOC) Atlanta-based AdvancedAR offers a business line of credit alternative to direct bank financing, by combining professional accounts receivable management with fast access to financing at attractive rates. By improving your receivables processes to reduce DSO and bad debt, accounts receivable serves as collateral for the credit line. • M&A Liquidity Options Many business owners have survived the recession and desire exit options. Atlanta-based M&A Marketplace by CHC is an innovative concept to connect owners/sellers with pre-screened buyers via a sellerfriendly auction without the cost and complexity of the investment banking/broker process. • Reverse Factoring ExpoCredit Corp., Miami, is partnering with Banco Sabadell to provide a program that helps business cost effectively extend trade payables to suppliers. This is an opportunity for a business to extend trade credit financing, while enabling the supplier to obtain faster payment. • Trade Finance, Purchase Order Financing, & SBA-Backed Loans Hana Financial, Los Angeles, provides an array of alternatives. This firm handles financing for all sizes of clients with options ranging from factoring of receivables to complex purchase order financing and SBA loans. • Supply Chain Financing Konnecta, Atlanta, has developed an innovative program with HSBC Bank, combining a rich technology platform, trade credit expertise, and financing pre-qualification to cost effectively facilitate trade credit financing for both suppliers and cusBuilding-Products.com

Figure 2

tomers. With pre-arranged banking support and electronic visibility across the supply chain, trade payables or receivables may be extended or accelerated.

Summary

U.S. businesses suffered mightily during the longest and deepest recession since World War II. No industries have been hammered more than homebuilding, building materials, and banking. All are related. The “new normal” business recov-

Building-Products.com

ery will include an economy with slower growth and a forever changed banking climate. This warrants new approaches, and now is the time to start. As summarized in Figure 2 (above), a back-to-the-basics approach should focus first on internally generated cash. This better positions a company as a stronger candidate for financing. Many new types of non-banking funding and cash generation solutions have evolved to meet today’s conditions. Private equity and merger and

acquisition activity is improving. Savvy investors understand housing cycles. This will generate positive interest in, and options for, building materials firms.

– A longtime building materials industry executive, Robert L. Turner III is c.e.o. of Smart Profitability Solutions LLC (www.smartsafetygulfcoast.com) and the founder of Management Services & Associates LLC, providing middle-market firms with liquidity solutions focused on generating working capital. Reach him at bobturner@msallcsite.com.

May 2012 The Merchant Magazine

NAWLA 2011 By Dave Kahle

Don’t jeopardize sales when personalities clash

UESTION: IN REGARDS

to personality conflicts with an account, at what point do you walk away and let someone else in your organization try? Great question. Let me answer in two ways. First, from a purely theoretical perspective, a professional salesperson should be able to build relationships with anyone, regardless of the personalities involved. So, from a theoretical point of view, the answer would be “never.” It is the responsibility of the salesperson to figure out how to sell to every account, and every person within the account. There are some selling situations where this “theoretical” position becomes part of the practical expectations for a salesperson. Large geographical territories, for example, don’t allow for the option of letting

someone else try. Having said that, let’s recognize that there are very few salespeople in the world who are analytical enough, creative enough, motivated enough,

and flexible enough to figure out how to sell to every account. So, we’re back to your question. I don’t think there has ever been any research on this, so my answer comes from my personal experience. A large part of the answer depends on the company’s position in the marketplace, their strategies, and the availability of a capable “someone else.” For example, if you have a hot new product with a limited window of opportunity, that would shorten the amount of time that a company could wait for a sales person to successfully penetrate an account. In a mature market, where competitors are jostling for business from one another, that could lengthen the time a company could wait. The same is true for a capable option. If you have no capable person prepared to take over the account, the time frame expands. If you have a good person chomping at the bit, that influences your calculations in the opposite direction. With all that said, my gut feeling is a year or two. It’s going to take at least a good year to exhaust all the possible strategies for penetrating the account. And there is no use changing the account until the current salesperson has given it his/her best shot. So, at least a year, maybe two. If there is no progress at that point, nor any sign of imminent changes, it’s time to make a change. – Dave Kahle has trained tens of thousands of distributor and B-2-B salespeople and sales managers to be more effective in the 21st Century economy. He’s authored nine books, including his latest, How to Sell Anything to Anyone Anytime. Reach him at (800) 331.1287 or via www.davekahle.com.

The Merchant Magazine May 2012

Building-Products.com

NEW Products

LED Deck Lighting FSC-certified Decking

Heppner Hardwoods now carries Cumaru decking from FSC-certified forests in Peru. Sizes include 4/4x6” and 5/4x6” in lengths from 7’ to 16’. Accessories can be custom manufactured.

HEPPNER HARDWOODS.COM (800) 524-7983

Building-Products.com

New LED, low-voltage lighting from TimberTech brightens outdoor living areas. The under-rail LED lights can be installed inside the top rail, between the balusters. Available colors are architectural bronze and coastal white. In-Deck LED lights can be seamlessly installed in decking planks, and come in architectural bronze.

TIMBERTECH.COM (800) 307-7780

May 2012 The Merchant Magazine

Metal-like Post Caps

CertainTeed’s new solar post caps for 4”x4” and 5”x5” posts feature a metallic finish with a corrosion-resistant PVC base that looks like metal.

CERTAINTEED.COM (800) 233-8990

Expanding Selection of PVC Mouldings

Versatex has added six new profiles to its line of made-in-the U.S. cellular PVC mouldings. Included are three windowtrim profiles (1-1/4”x4-3/4” window sill, 1-5/6”x1-3/8” sill nose, 1-3/4”x2-3/8” heavy sill nose), a 2”x3/8” garage door stop, and a 1-1/8”x15/32” beadboard cap— all in 16-ft. lengths—as well as a 1-1/4”x3” J-channel brickmould, in 18-ft. lengths. All mouldings in the now 26profile collection resist moisture and insect damage, and match the color and gloss of other Versatex architectural elements.

VERSATEX.COM (724) 857-1111

The Merchant Magazine May 2012

Building-Products.com

Hidden Fasteners for PVC Decking & Trim

Kleer Lumber now offers hidden fasteners for its cellular PVC trim and decking products. The new line includes Cortex screws and plugs for trim and decking, plus KLEERKlip stainless steel concealed fasteners for Kleer’s grooved decking products. When used together, builders can create a finished deck with no

exposed fasteners. Cortex fasteners are packaged in 50, 250 and 750 linear ft. boxes, and the two larger containers come

BORALTRUEXTERIOR.COM (678) 639-7004

KLEERLUMBER.COM (866) 553-3770

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.

Bio-Based Exterior Trims

TruExterior trim from Boral USA is manufactured from a blend of bio-based polymers and fly-ash. The products can be used for applications such as fascia boards, soffits, frieze and rake boards, garage door openings, window surrounds, and door trims.

with a free Cortex setting tool.

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May 2012 The Merchant Magazine

LACN GOLF Photos by The Merchant

LUMBER ASSOCIATION of California & Nevada hosted its annual PAC golf tournament April 12 at Black Gold Golf Club, Yorba Linda, Ca. [1] Brett Beloat, Al Reed, Greg Scott, Tim Hummel. [2] Oliver Barnes, Danny Andrea. [3] Steve Lawrence, Rick Deen. [4] Roger Knutson, Travis Knutson, Chad Barclay, Tom Barclay. [5] Ken Dunham, Doug Willis. [6] Jerry Romero, Angelo Cleffi. [7] Lynn Bethurum, Pete Meichtry, Rex Klopfer, Russ Primrose. [8] Andy Salazar, Jesus Viramontes. [9] Alan Schall, Chuck Casey. [10] Larry Christensen, Omar

The Merchant Magazine May 2012

Diaz. [11] Tim Kennedy, Bob Nagle. [12] Marc Spitz, Kevin Paldino. [13] Richard McArthur, Brian Hurdle. [14] Kim Wood, Gerry Merker. [15] Ken Lawless, John Assman. [16] John Wiesen, Jim Burns. [17] Paul Corso, John Allen. [18] Joe Allotta. [19] John Davis, John Pasqualetto, Mike Claborn, Craig Evan. [20] Scott Whitman, Terry Rasmussen, Keith Lyng, Scott Middaugh. (More photos on next two pages) Building-Products.com

[6] Jarrett Deschenes, Erik Flick, Louis Rojas, Larry Kaelin. [7] Chris Freeman, Sam Sanregret, Chris Gerhard. [8] Karen Glover, Glenda DeFrange, Suzy Cleffi. [9] Jean

Henning, Sheryl McArthur, Charlene Valine. [10] Paul McCaughey, A.J. Jesiolowski. [11] Chris Thoman. (More photos on next page)

MORE LACN GOLFERS (continued from previous page): [1] John Mayhew, Sergio Paz, Dave Vigil, Kelly Lyon. [2] Carlos Gonzalez, Ryan Mitchell, Greg Stout, Brad Satterfield. [3] Jake Brosterhous, Ron Hillman, Monika Bartko, Jay McArthur. [4] Mark Rommel, Chuck Brick. [5] Bart Weber, Dean Costello. Building-Products.com

May 2012 The Merchant Magazine

LACN GOLF Photos by The Merchant

LACN GOLF (continued): [1] Joe Audette, Walter Frederick, Jeff Clave, Buzz Mann. [2] Dave Miller, Jon DeLangis, Natalie Allen, Nick Larr. [3] Jeff Norihiro, John Seely, Danny Sosa, Oscar Laddaga, Kurt Robbins. [4]

The Merchant Magazine May 2012

Michael Oâ€™Dell, Graziella Terranova. [5] Rich Langton, Joe Bolton, Jon Hagen, Mark Huff. [6] Ryan Lauterborn, Gavin Morris, J.C. Lopez, Mike Walter. [7] Miguel Hernandez, Dan Croker, Neil Eibeler. [8] Tom Beall. [9] Mike Hacken. [10] Leslie Konsig, Barry Schneider. [11] Chris Bailey, Aly Kingsley. [12] Sheldon Doss, Mark Ganahl, Doreen Meeks, Pete Ganahl, Todd Petersen, David Hindmarsh, Grant Pearsall. [13] Lovell Williams, Chris Hedlund. [14] Jim Nicodemus, Tom Angel, Shannon Mott, Frank Bader. [15] David Higman, Dan Higman, Spencer Lacey, John Neel. [16] Alain Patton. [17] Gerry Perez, John Lopez, Johnny Pringle, Mike Kemp. Building-Products.com

ASSOCIATION Update

Lumber Association of California & Nevada is polling members on the possibility of a name change, to one encompassing a greater geographic area and product mix, something along the lines of ‘Pacific Lumber & Building Materials Association.’ LACN is also putting the finishing touches on its 15th annual Associates/ Dealers golf tournament June 7 at Rancho Solano, Fairfield, Ca.

Mountain States Lumber & Building Material Dealers Association is preparing for its annual WOOD Council golf tournament July 17 at The Ranch Golf & Country Club, Westminster, Co., followed by its annual Western Slope tourney Aug. 14 at Rifle Creek Golf Course, Rifle, Co. Western Wood Products Association hosts a members-only summer meeting Aug. 15-16 in Portland, Or. On the agenda are committee and board meetings, a guest speaker luncheon, and a wine tour.

Western Hardwood Association will hold its annual meeting June 2223 in Sunriver, Or.

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International Wood Products Association elected Warren Spitz, UCS Forest Group, Toronto, as president, succeeding Alan McIlvain, Alan McIlvain Co., Philadelphia, Pa. Cindy Bergin, Newman Lumber, Gulfport, Ms., is now v.p. and Chris Connelly, Wood Brokerage International, Lake Oswego, Or., treasurer. Joining them on the board are Geoff Doudera, Liberty Woods, Carlsbad, Ca.; Greg Simon, Far East American, Los Angeles, Ca.; Gregg Wilkinson, Bridgewell Resources, Tigard, Or.; Elizabeth Baldwin, Metropolitan Hardwood Flooring, Vancouver, B.C.; Craig Forester, Rex Lumber; John Hedin, Columbia Forest Products; David Weed, Robert Weed Plywood; Carl Gade, Penrod Co.; Livy Haskell, Lumber Liquidators; Paul Gates, Tradelink Wood Products; JoAnn Keller, Holland Southwest; Bronson Newburger, Clarke Veneers; Kenny MacMaster, Argo Fine Imports, and Hugh Reitz, PRS Guitars. Pacific Lumber Inspection Bureau is holding its annual meeting June 22 in Coeur d’Alene, Id. Building-Products.com

May 2012 The Merchant Magazine

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month.

HELP WANTED

BOHNHOFF LUMBER CO. is seeking an Inside Salesperson and Yard Foreman. Salesman position: Fast-paced office, position requires self-motivation, ability to communicate well, teamwork, knowledge of the lumber industry, and phone/walk in customer service. Spanish/English speaking is preferred. Offers salary plus medical benefits. Yard Foreman position: prior yard foreman experience or manager experience, self-motivation, ability to communicate well, teamwork, knowledge of the lumber industry, walk-in customer service, delegating tasks, and know how to operate forklift. Spanish/English speaking is preferred. Offers hourly plus medical benefits. Both positions are full time, Monday-Friday 7:30-4:00 in Vernon, Ca. Contact Christa Bohnhoff, (562) 706-7227.

POSITION WANTED ARE YOU IN NEED OF A ROAD WARRIOR?

With years of B2B account manager experience in the lumber & building material industry. Ready for your call. • Many contacts throughout the Midwest and Upper regions • Strong career of traveling to and handling up to 20 shows and expos a year • Exceptional background of establishing and maintaining new accounts • Solid record of producing top sales Email roadwarrior-rep@yahoo.com or call (888) 532-7757.

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The Merchant Magazine May 2012

The California Redwood Co. and Humboldt Redwood Co. received a three-year $750,000 matching-fund grant from the Headwaters Fund to market redwood decking in California. “We’re all marketing redwood for one of the highest and best uses, which is for decking,” said Jacqueline Debets, economic development coordinator and project manager at Headwaters. “The goal is to increase the volume of redwood sales and thereby stop the loss of jobs in lumber manufacturing.” The campaign will highlight the benefits of redwood, compared to wood-plastic composites. “We haven’t told our story,” said Carl Shoenhofer, v.p. and general manager of the California Redwood Co. “We’re all fighting over the same piece of pie. The opportunity here is to try to grow that pie. It’s simply a matter of getting the facts out.”

Epicor Gets More Mobile

CLASSIFIED ADVERTISING

TO RUN: ____ TIMES

California Producers Get Boost to Promote Redwood

Epicor Software Corp., Dublin, Ca., has unveiled new mobile and cloud-based solutions for the LBM market. Mobile Manager works by transmitting business data from a Catalyst or ECS Pro system to the Epicor secure data center, where it is formatted for mobile access and made available to mobile devices. It delivers realtime information on Android or Apple smartphones and tablets that allows users to respond to customer inquiries, track the health of the business, and make informed decisions anytime and anywhere. Hosted Solution delivers the robust functionality of the company’s LBM software and hardware without the costs and problems of maintaining a computer infrastructure. Epicor’s IT personnel perform all server maintenance, monitor server status, perform nightly backups, manage software updates, and handle disaster recovery. Epicor Payment Exchange handles all the key steps in accepting card payments, including authorization, settlement, and reporting.

Latest Breaking Industry News

building-products.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.

National Retail Federation – June 20-22, loss prevention conference & expo, Ernest N. Morial Convention Center, New Orleans, La.; (800) 673-4692; www.nrf.com.

Pacific Lumber Inspection Bureau – June 22, annual meeting, Coeur d’Alene, Id.; (253) 835-3344; www.plib.org.

Los Angeles Hardwood Lumberman’s Club – May 10, ladies night, Orange Hill Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Western Hardwood Association – June 22-23, annual meeting, Sunriver, Or.; (360) 835-1600; www.westernhardwood.org.

Remodeling & Decorating Show – May 18-20, South Town Expo Center, Sandy, Ut.; (818) 571-9012; www.thehomeshow.com.

Western States Roofing Contractors Association – June 24-27, convention & expo, Paris-Las Vegas Hotel & Casino, Las Vegas, Nv.; (800) 725-0333; www.wsrca.com.

Southern California Hoo-Hoo Club – May 18, Don Gregson Memorial Golf Tournament, San Dimas Golf Club, San Dimas, Ca.; (760) 324-0842; www.hoohoo117.org.

Remodeling & Decorating Show – May 19-20, Orange County Fair & Event Center, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com.

Do it Best Corp. – May 19-21, spring market, Indiana Convention Center, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Kitchen Cabinet Manufacturers Association – May 20-23, annual convention, Williamsburg Lodge, Williamsburg, Va.; (703) 2641690; www.kcma.org.

Willamette Valley Hoo-Hoo Club – June 1, golf tournament, Shadow Hills Country Club, Junction City, Or.; (541) 688-6675.

Composite Panel Association – June 3-5, spring meeting, Fontainebleau, Miami Beach, Fl.; (301) 670-0604; pbmdf.com.

Forest Products Society – June 3-5, “Forest Products: Solutions for a Global Green Economy,” Washington, D.C.; (608) 231-1361; www.forestprod.org.

Western Wood Preservers Institute – June 24-26, summer retreat, Ritz-Carlton, Bachelor Gulch, Avon, Co.; (800) 729-9663; www.wwpinstitute.com.

PCBC – June 27-29, Moscone Center, San Francisco, Ca.; (800) 956-7469; www.pcbc.com.

Mountain States Lumber & Building Material Dealers Association – July 17, WOOD Council golf tournament, Ranch Golf & Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.

Lumber Association of California & Nevada – July 19-20, 2nd Growth summer conference, Palm Desert, Ca.; (800) 266-4344; www.lumberassociation.org. Southern Oregon Lumbermans Association – July 26-27, 50th anniversary golf tournament & BBQ, Rogue Valley Country Club, Medford, Or.; (800) 633-5554.

Lumber Association of California & Nevada – June 7, associates/dealers golf tournament, Rancho Solano Golf Club, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org. Forest Products Society – June 9-11, international convention, Omni Shoreham Hotel, Washington, D.C.; (608) 231-1361; www.forestprod.org.

American Architectural Manufacturers Assn. – June 10-13, summer meeting, Marriot Oak Brook Hills, Oak Brook, Il.; (847) 303-5664; www.aamanet.org.

National Lawn & Garden Show –June 11-13, Embassy Suites, Frisco, Tx.; (888) 316-0226; www.nlgshow.com.

THUNDERBOLT WOOD TREATING

Los Angeles Hardwood Lumberman’s Club – June 14, election night, Moreno’s Mexican Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

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

www.thunderboltwoodtreating.com

Treating Services Only (TSO)

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

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

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

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

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

Building-Products.com

May 2012 The Merchant Magazine

IDEA File Griddle Me This...

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

Advantage Trim & Lumber [www.advantagelumber.com] ................54

AERT [www.aertinc.com] .......................................................................5

Ainsworth [www.ainsworth.ca].......................................................26-27

Allweather Wood [www.allweatherwood.com].........................Cover III

Atlantis Rail Systems [www.atlantisrail.com] ....................................15

Bear Forest Products [www.bearfp.com] ...........................................51 Big Creek Lumber Co. [www.big-creek.com] .....................................28

Blue Book Services [www.lumberbluebook.com] .............................36

Boise Cascade [www.bcewp.com] ......................................................45

What better way to thank both customers and vendors than hosting a free pancake breakfast, complete with sausage, coffee, and orange juice? Every year, McLendon Hardware, Renton, Wa., hosts a free breakfast on the first Saturday of May to kick off the chain’s annual Anniversary Sale. The event also publicizes its annual Mother’s Day plant sale. When Bruce Stevens joined the company 21 years ago, to handle advertising and sales, each store in the chain hosted its own anniversary sale. It was his idea to coordinate the event with a free breakfast at each store and invite vendors to help underwrite the cost. In return, vendors get preferred placement in all sale announcements—printed circulars, plus TV, radio, and Internet ads—and preferred product placement during the sale. “Our business is probably 90% retail and 10% contractor,” says Stevens. “That’s why we don’t just cater to contractors.” He added that financial support from vendors covers about 70% of the cost of hosting the event. That’s significant since more than 8,000 breakfasts were served last year at the chain’s six stores in Washington state. Although McLendon provides tables and chairs, a catering company handles the cooking so employees can concentrate on sales. This year’s breakfast marks the 86th anniversary of McLendon’s, which plans to open a seventh location, in Tacoma, as soon as a newly purchased property can be remodeled. The company also operates two DCs.

BW Creative Wood [www.bwcreativewood.com]...............................32

Cabot [www.cabotfactoryfinish.com]....................................................7 California Redwood Co., The [www.californiaredwoodco.com].........3

California Timberline [www.caltimberline.com] ...................................4

Canfor [www.canfor.com] ....................................................................23

Capital [www.capital-lumber.com] ................................................57, 59

Columbia Cedar [www.columbiacedar.com].............................Cover II Distribution Management Systems Inc. [www.dmsi.com] ................41

Eco Chemical [www.ecochemical.com]..............................................30

Enduris [www.enduris.com].................................................................39

Fontana Wholesale Lumber [www.fontanawholesalelumber.com]..55 GRK Fasteners [www.grkfasteners.com] ...........................................21

Hoover Treated Wood Products [www.frtw.com] ..............................29

Huff Lumber Co.....................................................................................24

Humboldt Redwood Co. [www.getredwood.com]....................Cover III Idaho Forest Group [www.idahoforestgroup.com]............................43

Ipe Clip Co., The [www.ipeclip.com] ...................................................31

J.M. Thomas Forest Products [www.thomasforest.com]..................54

Keller Lumber Co. .................................................................................61 Mary’s River Lumber [www.marysriverlumber.com] .........................40

McFarland Cascade [www.mcfarlandcascade.com]..........................17 Mount Storm Forest Products [www.mountstorm.com] ...................59

Norman Distribution Inc. [www.normandist.com] .............................55 North American Wholesale Lumber Assn. [www.nawla.org]............37

Pennsylvania Lumbermens Mutual Insurance [www.plmins.com] ..47

Redwood Empire [www.redwoodemp.com] .......................................35

Roseburg Forest Products [www.rfpco.com].....................................11

RoyOMartin [www.royomartin.com]......................................................8

Screw Products [www.screw-products.com] .....................................29

Simpson Strong-Tie [www.strongtie.com] .........................................25

Siskiyou Forest Products [www.siskiyouforestproducts.com]........49

Straight Line Transport [www.straight-line-transport.com]..............15

Sunbelt [www.sunbeltracks.com]........................................................50

Swanson Group Sales Co. [www.swansongroupinc.com].....Cover IV Thunderbolt Wood Treating [thunderboltwoodtreating.com]...........61

TigerDeck [www.tigerdeck.com]..........................................................52 TMI Forest Products [www.tubafor.com]............................................48

DURING THE ANNUAL event, customers can spin a prize wheel to win products donated by vendors.

The Merchant Magazine May 2012

Viance [www.treatedwood.com]..................................................Cover I Wahoo Decks [www.wahoodecks.com]..............................................53

Yakama Forest Products [www.yakama-forest.com] ........................44 Building-Products.com

The

MERCHANT

Magazine