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LATEST TRENDS IN DECKING PRESSURE TREATED WOOD KNOW YOUR HOUSEWRAP
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Special Features 8 MARGIN BUILDERS OPPORTUNITY IN PRESSURE TREATED WOOD: HOMEOWNERS EMBRACE OPEN-AIR PORCHES
10 FEATURE STORY STRATEGIES FOR USING SAMPLES TO SELL ALTERNATIVE DECKING
14 INDUSTRY TRENDS JUST-IN-TIME BUYING CREATES DISTRIBUTION ENIGMA IN DECKING
16 PRODUCT SPOTLIGHT AIR BARRIERS VS. VAPOR BARRIERS VS. WATER-RESISTIVE BARRIERS
18 INDUSTRY TRENDS WITH POPLAR’S SUCCESS, WILL OTHER WESTERN WOODS GO TO PLANTATIONS?
46 PHOTO RECAP: WESTERN DEALER SHOW 48 PHOTO RECAP: DECK EXPO
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TOTALLY Random By Alan Oakes
MERCHANT
Magazine
www.building-products.com
A publication of Cutler Publishing
B
Be careful how you present yourself!
you read this column, the election will be over. Like most of you, I will be glad to get it behind us. Tonight, though, I watched the second Presidential debate and it was very different from the first. Tonight, depending on what side of the aisle you sit, you would probably think your candidate won, but the first debate was a real lesson for all of us—particularly in business. First, this is not political. I make no comment on the substance of the debates, but like many of you, I suspect, I watched the first Presidential debate with great interest and surprise. I experienced precisely the opposite of what I expected, as apparently did most every pundit. I did not have high hopes for Governor Romney in the debate and expected with all that had happened in previous weeks that President Obama would probably win it. As we all saw, exactly the opposite happened. From the start, the President looked 10 years older than he did only a few months back. He was listless. He looked drained, like he wished he were anywhere but at the debate. Romney, on the other hand, was pumped up from the moment the bell sounded and came across like he meant business and was in command. As the debate ended, I heard all the pundits swallowing their pre-debate words, acknowledging what a poor performance it had been by the President. As the polls soon showed, it was an overwhelming win by Romney, and the election, by all accounts, was thrown back into play. Again, I make no comments as to the substance of the policy debate, but I use this example as a warning to all of us in business, especially those of us in sales. If we are not prepared, if we are not pumped up, if we are not ready to perform—we lose. If we take our customers for granted, we stand a good chance of losing a sale—and perhaps a customer—to the competition. Every day is a new day and we have to have that same energy from the moment we make our first call to the last, even after a day of no’s. Often we do not get a second chance, unlike the President, who still had two more debates. Who knows what the President was doing the day of the first debate. I have heard theories that he was too busy running the country, that he lacked time to prepare, that he was hit by the high altitude. The reality is that it does not matter. Remember the old adage, “The show must go on.” Maybe he took things for granted, maybe not, but it was generally believed he just did not prep enough. Complacency in any company is a curse. I have to say on a personal note that I have fallen into that same trap more than once and have paid for it even with all the experience of 40+ years in the field. I should know that when I am calling on a customer I need to be prepared by reviewing the past and present history of each account and having a competitive analysis from both their point of view and ours. I should know what is new with them, what is happening in their business, their challenges, who the real decision-makers are. I should know not what I want to sell them, but instead what they need and how it will fit in with their product mix, what their sales and margin philosophies are, what support they will need, and a good idea of what it will take to replace someone else’s product—and many other things, to boot. I should know how to marshal my knowledge and thoughts to position a sale or move the sales process forward. Again, we do not always have the opportunity to turn around a bad performance. More often than not, once damage is done and regardless of what you do, you can never recover. Lastly, I would like to give thanks for the year so far. Certainly a better year, though not one for the annals, but one that I hope is a harbinger for the year to come. I may be wrong, but I am sensing the turn we have been looking for. I am thankful for all the friends that we enjoy with our publications and wish you and your families a Happy Thanksgiving. Y THE TIME
Alan Oakes, Publisher ajoakes@aol.com
6
The
The Merchant Magazine November 2012
4500 Campus Dr., Ste. 480, Newport Beach, CA 92660
Publisher Alan Oakes ajoakes@aol.com
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MARGIN Builders By John Paulin, Tailor Decks
THIS INVITING deck/porch combination, made of specially selected and milled Wolmanized Outdoor wood, was chosen 2011 Deck of the Year in a national competition. Contractor: Tailor Decks. (Photos courtesy Wolmanized Outdoor Wood)
Hot option for outdoor living
Homeowners embrace open-air porches
I
N MY SUBURBAN Atlanta business, I’m seeing significant newfound interest in open-air porches. They are currently one of the hottest requests from my clients. In recent years, probably 75% of the projects we built included a screened-in porch, but the dominance of screened-in porches has shifted to porches that are open. They offer desirable features for homeowners and sales opportunities for dealers. Over the past two years we’ve built many different styles of open porches—porches with gable roofs, shed roofs, hip roofs, and the latest, flat roofs. Variations are numerous. We’ve had customers that want their porch painted, others who prefer stain, and some who ask for a combination of paint and stain. Furthermore, all of the
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desirable amenities of a screened porch can be built into an open porch. This includes electrical outlets, ceiling fan/light kit, TV, audio speakers, and a fireplace. What’s the difference between a screened-in porch and an open porch, besides one having screens and the other not? Both provide shade from sunshine and cover from precipitation, allowing for more use than from an exposed deck. When they are elevated like a deck, they often provide usable, rain-free space on the ground level. A screened-in porch is an extension of a house projected outdoors. Compared to an open porch, it feels a little more enclosed and private. An open porch is subtly different. It is like a piece of the outdoors brought partially inside. An open porch is cov-
ered with a roof structure, yet psychologically has an open feeling. If a deck adjoins an open porch, as it often does, the usable outdoor living area is much larger than if it adjoins a screened-in porch—there’s no door and wall dividing the two areas. Another advantage we see involves grilling, a common activity on a deck or porch. Grilling, serving, and eating are more informal without screened walls, and spills are less traumatic. An open porch is like a park pavilion attached to a house. If that is too public and the homeowner wants a little privacy from neighbors, a sliding curtain can be installed as a separator. A curtain adds color, texture, and versatility to a porch. There is at least one situation in which an open porch may not be Building-Products.com
advisable—if the back yard attracts a lot of mosquitoes or bugs. However, the homeowner can burn citronella candles or take other steps to minimize insect confrontations. The maintenance needed for an open porch is similar to that for a screened-in porch, which is less maintenance than required for a fully exposed deck. The floor and railing of an open porch is not exposed to the elements like a deck; therefore, if the floor and railing is stained, the coating will protect and look great for years to come. If the ceiling is stained, there is a good chance it may never need to be re-stained. Whether it includes an open porch, screened-in porch, pergola, or no overhead structure at all, an outdoor living area should be an inviting space. It should be a place where the homeowner wants to go, where family and visitors gravitate naturally because of its promise of pleasant comfort. A good view and tasty grillings will certainly lure people onto the deck, but so will two other characteristics: (1) lighting that adds practical elegance once the sun sets and (2) natural
building materials. A dark deck/porch can be spooky and hazardous. This is not the atmosphere wanted. Soft lights on steps, along railings, and on the porch roof will promote greater use of the deck. We install LED lights instead of incandescent lights. Some LED bulbs do not attract bugs or they attract fewer bugs. We’ve come came across a couple of LEDs that are being advertised as bug repellent lights: Miracle LED 605023 LED light bulbs, Yellow, and Infinity LED Ultra bug light with 38 powerful LEDs. You may find others by doing some research of your own. We’ve had good results by using Pharox 6 watt LED bulbs (this bulb is intended to replace a 60-watt incandescent bulb, although it only produces 360 lumens—less than half of what 60 watt incandescent would produce) and GE Reveal 10w, 400 lumens CFL (just a slightly higher output than the LED, it’s marketed as a 40w replacement). Another factor that can affect deck/porch usage is the material it’s made of. I’m partial to the natural
appearance of wood. Vinyl and wood plastic composite decks can be very attractive—I’ve built many decks with them—but I try to steer my clients toward wood. Most of my projects are built of preserved lumber, but not the kind typically offered by treating companies. We work directly with dealers and sawmills to get high-grade lumber with vertical grain. Then we have it machined on the surfaces with rounded corners and tapered sides. The result is a very good-looking project that invites homeowners to make use of it. Offering open-air porches is valuable for contractors who are building outdoor spaces. If you are not talking with contractors about open-air porches, you and your customers may be losing out on jobs.
– John Paulin is the owner of Tailor Decks, Statham, Ga., which he founded in 1994. One of his decks was chosen overall deck of the year in the 2011 competition of the North American Deck & Railing Association. He has also won the LongSullivan Award of the Southern Forest Products Association for his innovative use of southern pine.
OPEN PORCHES, covered but not screened, have become hot items for upscale deck builders. They allow for pleasant outdoor enjoyment even on rainy days and under intense sun. Contractor: Tailor Decks. Building-Products.com
November 2012 The Merchant Magazine
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FEATURE Story Decking Sales
Use samples to sell alternative decking
T
RADITIONALLY , DEALERS
have been the first stop for consumers looking to upgrade outdoor living areas. This was the place to view dis-
plays, consider various options, and get small decking samples to take home. Another option was to call a con-
PRO SALES SPECIALISTS such as Chuck Barr (left) and Kelsie Moore (right) at ProBuild, Bradenton, Fl., rely on fully stocked kits—complete with board and railing samples—that highlight Endeck decking and Enrail railing products from Enduris.
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tractor, who visited the consumer’s house with sample kits from one or more manufacturers. Once choices were made, an order was placed to a dealer. If extra supplies or accessories were needed, the dealer was called again. Today, many consumers conduct initial research online, before visiting a dealer or contacting a contractor. Because of this trend, many decking manufacturers now offer samples through their website—free or at a nominal cost. Fiberon has taken things a step further, by launching an own online shopping store that offers more than just samples. “We want customers who prefer the ease of shopping from home to obtain items they want, and contractors an efficient way of obtaining needed items to complete installations,” says Doug Mancosh, president of Fiberon, New London, N.C. “Our new site is one more resource we can provide customers to offer convenience in ordering products they need.” Through the online store, deck samples measuring 12”x12” can be ordered for $5.00 each. Contractors can choose from a full range of fasteners, in 90 and 900 count containers, as well as an installation tool and a proprietary deck cleaner. Railing components such as balusters, caps and skirts are also available online, along with matching hardware. “We started the online store for samples and service/replacement items,” explains Edie Kello Wilson, director of marketing communications Building-Products.com
at Fiberon. “Dealers told us that most of these small items are better handled online, rather than having to special order with minimum order requirements, higher costs, freight, and the time to get small quantities.” Enduris, Jacksonville, Fl., provides free 3” samples of its Endeck boards to contractors and consumers. Longer, individual pieces are also available, upon request. Depending on their sales volume, dealers and distributors are eligible for free sample packs for counter display, counter displays, banners, and freestanding deck and railing displays. The company’s sample kit for contractors has made sales calls to higher-end properties easier. “Contractors expect samples and will lean toward the manufacturer that provides their needs,” says sales and marketing manager Rick Wearne. “The contractor is where you will lose business if their needs are not met.” He adds, “Our products look real good and do well in ads and brochures, but they tend to shine when we can get the actual product in prospects’ hands. It is our intent to take the worry, cost, and complications out of the sample requests procedures—so the distribution chain will associSAMPLE KIT demonstrates color options and features of AERT’s MoistureShield decking products.
DEALER DISPLAY and sample kit of Kleer Lumber’s decking catches the interest of prospective decking customers at Jackson Lumber, Amesbury, Ma.
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The Merchant Magazine November 2012
ate this with ease in receiving product on an ongoing basis.” Integrity Composites, Biddeford, Me., offers online ordering to both consumers and dealers/distributors. Sales manager Jim Poulin believes it is important to offer samples so customers can see and feel the actual products, instead of just viewing a beauty shot online or in a print ad. “Anyone can fill out a sample request form on our website and receive free individual samples, with no charge for shipping,” he says. “Our distributors order samples and displays through us as well. We offer mixed color cases of decking and railing samples to them for free.” TAMKO, Joplin, Mo., provides a variety of sample offerings to fit the needs of dealers and distributors. Individual product samples, boards, and dealer packs are offered at no charge. Racks and displays are available for co-op. The company also offers a display deck program in which dealers and distributors can purchase supplies for the deck at a discounted price, with TAMKO providing design specs free of charge. “Most samples are mailed directly to the dealers and distributors, which in turn distribute them to the homeowner,” says Alex Hines, corporate director of marketing. “Homeowners can call directly and obtain a sample straight from the manufacturer, but those situations are limited.” He believes that samples allow consumers to feel confident in the product they are choosing. “Most homeowners will not make a decision based solely on a printed piece,” he says. “If you can’t show a product, you can’t sell it. This makes the product easier to sell.” Kleer Lumber, Westfield, Ma., provides free samples to its dealers and distributors. The company also offers “individual samples directly to consumers who request them through our website or at shows,” says Jack Delaney, senior vice president of sales and marketing. “We will ship Building-Products.com
samples directly from our plant to consumers or dealers, or our distributors can provide samples.” NyloBoard, Covington, Ga., is formally re-launching its NyloDeck brand this fall. A major part of the effort is developing a dealer network and dealer displays. In the meantime, the company has been offering free 4”x6” samples at no charge to consumers. Longer length samples of 3 to 4 ft. are offered for a nominal cost. “Since we are active on social media channels and online, we do get numerous requests directly from consumers,” explains Craig Jacks, vice president of sales and marketing. “As we put our national dealer network in place, we’ll direct consumers to them.” AERT, Springfield, Ar., offers free samples of its MoistureShield decking through its website. The company also
NYLODECK samples are helping NyloBoard relaunch the brand this fall.
provides kits and displays to dealers and distributors, as well as sample kits for contractors. “We constantly receive good feedback about our displays and samples from our dealers and distributors,” says Brent Gwatney, vice president of sales and marketing. “Displays within and outside the stores offer an easy conversation starter and attention getter, and individual samples provide a look and feel for customers that will increase the chances of making a sale.” Building-Products.com
November 2012 The Merchant Magazine
13
INDUSTRY Trends By David Elenbaum, Specialty LBM Holdings
The distribution enigma of decking
W
HOLESALE (HŌL·SĀL): The selling of goods in large quantities to be retailed by others. That’s what is written on the online definition site, Wikipedia, about the two-step distributor (wholesaler). So what happened? Today I see distributors’ trucks with one piece of material instead of full units. Many retailers have no broken units in stock, suggesting that they did not buy a “wholesale” unit and break it.
Of course, I am talking about decking and railing. In my last article, I wrote about what a retailer can do to sell more decking (May, p. 10-11). But what about the distributor? What can a distributor do to sell more decking? Let’s get into the right frame of mind first. Right now, it seems that there is a pricing guideline used across the industry for distributor pricing: A direct or truckload price, an out of warehouse (OOW) unit
LARGE QUANTITY purchases of decking and other building materials are becoming less frequent as just-in-time buyers place greater price pressures on distributors.
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price, and a broken unit or piece price. Pricing fluctuates through the year with winter buys and season pricing, etc. Certainly reasonable. Logic dictates that if a retailer is able to take the risk or “move the cheddar” as I like to say, he can buy truckloads at a huge discount, especially if he does so in the winter. With this purchase, he can be vastly competitive against the guys who buy OOW or pieces. He usually enjoys caveat support mechanisms such as truckload prices on OOW units and reduced piece pricing. Such service should support healthy margins and good competition if the programs are honored; support and investment nurtures loyalty and protection. Devil’s advocate: the temptation of the sale is a vicious, hungry, eating machine. It doesn’t take much, and a retailer who only buys units is getting truckload pricing, a non-stocking dealer is getting unit pricing on broken unit orders, and the bad thing, these pricing mishaps are happening in markets where other retailers are buying truckloads, therefore creating a nasty margin issue. Let’s look at it. Retailer A buys 20K linear ft. of product at winter buy price (say 5% below season price) and feels like he should be able to make 30% off his stock. Dealer B decides to buy four units OOW at a winter buy price that is also 5% below season price, but he pays more than the truck guy because he is in a higher cost bracket since OOW Building-Products.com
units cost more than directs. He knows that he has to compete with Dealer A, but the only way to do so is to match his price, so he takes a margin hit and only marks up his material 20%, give or take a few points. This is reasonably healthy competition, since they are both making investments. Finally, Dealer C comes along and decides to not buy anything in the winter buy season or stock anything in his retail yard. He knows that he has to compete with dealers A and B, so he decides to take a margin hit and only make 10%. He may now be cheaper than the others. Since he has no cash invested and virtually no risk, this is a logical move for him. He took business from the competition and made a few bucks in the process. He doesn’t stock any decking, so he didn’t lose a sale opportunity on his inventory. He cherry-picked the market with no investment and won. Do you blame him or the pricing? This is a nasty scenario. Before you know it, the others get wind of this pricing debacle and call up their rep. The logical conclusion from the rep is to cave and give the dealer better pricing so he can overcome the competitive situation. This happens
Building-Products.com
and the market price of the product is now lower. The stocking dealers are dropping their margins to turn product. They are reducing stocking buys, and they are ordering more piece orders from distribution. This has been the trend in the decking industry over the past decade. The introduction of countless colors and options has only exacerbated the situation. The issues at hand have been seen before in many categories—vinyl siding, windows, roofing, all categories where the traditional supply yard flourished and therefore the distributor did, as well. Now, much of that has gone to one-step distribution and cut out both parties. The cost structure allows for a one-step distributer to bring in SKU-loaded directs from the manufacturers and piece them out to the contractors, since they have eliminated a step in the process and can afford to do business this way now. The margin supports full-line stocking opportunities and they flourish. There are few in the decking business with this sort of model, but they are growing in numbers. Considerations of how to begin to remedy this issue include placing more separation between pricing lev-
els and more control over who has access to what. Perhaps set a required buy-in in stock inventory to be able to receive pieces at all. My theory is that a truck buyer should be able to get 30% and still beat an OOW piece buyer at 10%. Also, creating programs for value adds to the end-users for buying from stocking dealers, such as co-op enhancements and so forth. Finally, perhaps wholesalers could consider getting back to what they are good at—selling whole units. Then again, Wikipedia has been known to be wrong and the world of the twostep wholesale distributor may have changed forever. Nevertheless, I continue to support the industry and will evolve with it. I just hope I can make a few bucks in the process.
– David Elenbaum is president of Specialty LBM Holdings of SC, Simpsonville, S.C., a company engaged in sales, distribution and installation of outdoor living products. He serves as a national director of the North American Deck & Railing Association and is chair of the NADRA CPAC committee. Reach him at davidelenbaum@gmail.com.
November 2012 The Merchant Magazine
15
PRODUCT Spotlight By Colin Szewaga, Air Barrier Association of America
Know your barriers
Understand the difference between air, vapor and water-resistive barriers
A
IR BARRIERS ARE NOT to be confused with vapor barriers or water-resistive barriers—although individual materials may provide all three functions. Each barrier has a different function to perform in a building assembly. Dealers and distributors should understand the separate functions their materials provide to sell the right product for each job.
are different and results from both methods of testing are not comparable. Check your local building code for the method that is referenced in the glossary. The test measures the water vapor that passes through a material. Proper specimen preparation is critical and experience has shown that if there are pinholes in the material or if the specimen has not been properly sealed into the apparatus using the correct mixture of wax, the results are not repeatable or reproducible.
Vapor barriers are materials used to slow or reduce the movement of water vapor through a material (water vapor Water-resistive barriers are materials on the exterior of is also transported by air leakage but this can be resolved a building that are intended to resist liquid (bulk) water by installing an air barrier). Vapor barrier materials are that has leaked, penetrated or seeped past the exterior typically installed on the warm side of the insulation in a cladding from absorbing into the exterior sheathing or conbuilding assembly. crete wall (depending on the application) and further into The position of the vapor barrier in a building assembly the wall assembly. will be determined based on the climatic conditions. In Water-resistive barrier materials can be mechanicallywarm climates, it will typically be on the exterior and in fastened building wraps, self-adhered membranes (dependcold climates, it will be on the interior. ing on composition), fluid-applied materials, rigid cellular Vapor barrier materials can be self-adhered membranes thermal insulation board, medium density spray (depending on composition), fluid-applied materials, rigid polyurethane foam, or any other material that has been cellular thermal insulation board, or medium density spray designed to resist liquid water. polyurethane foam (SPF). The thickness of the material Water-resistive barriwill impact whether it is ers are combined with vapor permeable or not. flashing and other supWater vapor transporting materials to mission is the measureensure that there is a ment of water vapor shingled effect to direct through a material. In liquid water away from most cases, the results the exterior sheathing. are expressed as vapor Testing the water permeance. The most resistance of a material common test method for is normally done using measuring water vapor the “boat method” permeance is ASTM (ASTM D779), the E96. It can be tested “water ponding” method using either the desic(CCMC 07102 section cant or water method, 6.4.5), or the hydrostatic and typically the results head method (AATCC are reported in the units 127). of ng/(Pa•s•m²) or US Perms. Keep in mind Air barrier materiHOUSEWRAPS, such as Benjamin Obdyke’s HydroGap, often double as both air that these test methods barrier als are used anywhere in and water-resistive barrier.
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The Merchant Magazine November 2012
Building-Products.com
a building assembly to stop the movement of air into or out of the conditioned space (water vapor can also be transported by air). Air barriers can be mechanically-fastened building wraps, self-adhered membranes (depending on composition), fluidapplied materials, rigid cellular thermal insulation board, medium density spray polyurethane foam, poured concrete, metal, or a host of other materials. Air permeance is the amount of air that permeates through a material, whereas air leakage is the air that passes through holes or gaps. Any material that has an air permeance no greater than 0.02 L/(s•m²), at a pressure difference of 75 Pa (0.004 cfm/sq. ft. at a pressure difference of 1.56 lb./sq. ft.) when tested in accordance with ASTM E 2178, is an air barrier material. Air barrier assemblies are a collection of air barrier materials and air barrier accessories (such as sealants, tapes and transition membranes) assembled together to form a continuous barrier for air filtration into and out of the environmental separator. The performance of an air barrier assembly is of far greater importance that the air permeance of the material. When materials and accessories are installed proficiently, the benefits of the assembly have positive benefits for the entire life cycle of the building.
Multi-Function Materials
Materials can provide an air barrier, a vapor barrier, a water-resistive barrier, or any combination of these three functions. Some materials can provide all three, plus the function of a thermal insulation. Other materials may provide all three functions, and some materials may provide two functions. It would be unusual for a material to only provide one function. By understanding these principles, an effective building separator can be provided to professionals to create effective barriers that help increase building occupant comfort, reduce energy bills, and prevent future moisture and air-related concerns. – Colin Szewaga, C.E.T., is technical services advisor for the Air Barrier Association of America. He can be reached via www.airbarrier.org.
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November 2012 The Merchant Magazine
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INDUSTRY Trends By Dave Sweitzer, Western Hardwood Association
More lumber plantations coming to West?
E
ARLY SUCCESS by a relatively new western hardwood species may lead other producers to emulate its production and marketing game plan with alder and other established western hardwoods. The newcomer is hybrid poplar marketed as Pacific Albus. Planted as an irrigated plantation crop for providing chips to the pulp industry, it has since been allowed to grow and become saw timber. It takes eight or nine years to be a chip crop and 12 to 13 years for saw timber. The dominant western hardwood species remains alder, marketing throughout the world for over a half century. The demand for alder is greater than the available har-
THE SUCCESS of GreenWood Tree Farm Fund’s 35,000-acre hybrid poplar tree farm and hardwood sawmill complex in Boardman, Or., has caught the attention of producers of alder and other western hardwoods. Collins Cos. manages the mill and markets the lumber under the brand of Pacific Albus.
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The Merchant Magazine November 2012
vestable supply, even though the growing stock inventory gets bigger every year. The difference between growing stock inventory and that which is available for harvest is the restrictions from governmental agencies to purportedly protect water quality and fish populations. Sound science does not show a direct correlation between harvesting and fish/water issues. It seems obvious that restricting harvesting is leaving more fuel in the forests to burn, causing runoff into the streams, and polluting the water and fish habitat. Now, alder is taking a lesson from Pacific Albus and looking more at agriculture plantations as well as forestry applications. A superior alder seedling is now available in limited quantities that are expected to grow faster and straighter without sacrificing strength and outstanding workability characteristics associated with alder. The clones would have a longer planting window in the spring because of their reduced susceptibility to late frost and early sun scald. Saw timber growth could be under 20 years, compared to the 30 years for today’s alder crop. Other featured western hardwood species would include big leaf maple, California black walnut, chinquapin, Oregon white oak, Pacific madrone, tanoak, western ash, western birch, and western red oak. The trend will be one of many studied in May 2013 during the Western Hardwood Association’s international convention and exposition in Portland, Or. Buyers from offshore and the U.S. East Coast will be exposed to a smorgasbord of western hardwoods from primary producers, secondary producers, wholesalers, importers and exporters. More than 30 exhibitors will be available to show more than a dozen western hardwood species. Lumber, millwork, and finished products will be highlighted. Information and training seminars will also be featured during the two-day event. Partners with WHA in this endeavor include the American Hardwood Export Council, Oregon State University–Wood Innovation Center, Washington State University, University of Washington, Washington Hardwoods Commission, and Washington Farm Forestry Association. More partners are welcome. Western Hardwood Association was started in 1955 to expand the world’s knowledge of western hardwoods. Its recently revised mission statement is “authoritative resource for a sustainable, profitable, and growing western hardwood industry.” – Dave Sweitzer is secretary/manager of the Western Hardwood Association, Camas, Wa. Reach him at (360) 8351900 or wha@westernhardwood.org. Building-Products.com
COMPETITIVE Intelligence By Carla Waldemar
The coast is clearing
A
OSTEEN IS PEERING into the future. Is that a light at the end of the tunnel he spies—or is it a train wreck looming? As the executive vice president of East Coast Lumber, he’s preparing for both outcomes. The Fort Pierce, Fl.-based company has weathered both extremes in the decades since its founding in 1902 by Allen’s great-grandfather. That gent, who owned a yard in in East Central Florida, foresaw strength in numbers, LLEN
so he hooked up with several other like-minded owners in nearby towns to unite as East Coast, with operations in St. Petersburg, Ogala and Cocoa. During the next decade, they added sites in Miami, Stuart and elsewhere—“growing substantially,” as Allen relates, “until the land bust of the ’20s,” when downsizing became the necessary order of the day. (Sound familiar?) By the ’60s, a truss plant had been added, then another (consol-
UNDER (l-r) executive v.p. Allen Osteen and president Don Osteen Sr., East Coast Lumber has returned to high growth, despite the feeble state of the Florida’s construction industry.
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The Merchant Magazine November 2012
idated into a single unit recently), serving the six yards then operating in the ’80s, currently consolidated into five. Today’s ongoing recession— Allen actually uses the D word for the state of things in Florida—has reduced employee count from a high of 300 to a 60 working-smarter staff—“like losing family,” the boss regrets, “but essential for survival.” A fourth-generation owner such as he doesn’t throw in the towel when things look bleak (“Hey, I’m too young to retire!” he explains with a laugh.) Instead, he makes positive changes. And that’s exactly the route East Coast has taken. Voila—down the tunnel, that glimmer of light is looking stronger. Slowly, steadily, business is gaining speed. “We’re up 20% from last year,” Allen reports. What drove the turnaround? Not one sole Aha! moment—that’s only in the movies—but a succession of smart little tweaks. East Coast hooked up with Ace, for one, enhancing its depth and breadth of SKUs—“making us a full-fledged operation”—beefing up hardware, especially, to better serve its strong base of contractor customers, but also—fringe benefit—for the first time, luring d-i-yers to the company’s stores as well. Second, the outfit decided to invest in a new computer system. “This gives us a lot more information on sales, margins, inventory turns, and such. It helps us better manage accounts receivable, too.” And it allows contractors to use its enhanced website to access product info and pricing at their convenience. East Coast also seized an opportuBuilding-Products.com
nity to launch its own, new millwork division. It approached a father-and-son business with an offer to take them under the East Coast umbrella, a win-win scenario that’s proved a boon in scoring the upscale remodeling projects that are still moving ahead by moneyed homeowners who haven’t felt the pinch. “They’ve got the cash to spend and want our custom crown mouldings, doors and such,” Allen reports. Add those offerings to the output of the roof- and floortruss plant, which serves contractors and other dealers in a wider geographic range, and you’re now talking about onestop shopping. Especially when you figure in another smart addition: a new, full-scale lawn and garden department: “plants and trees, as well as mulch and pavers,” explains Allen—“another step that’s really paid off for us.” Sure, the big-box boys are shouldering into the territory, but East Coast outshines them with top-notch service and a long, strong channel of knowledge. “Many of our people have been here their whole careers. Contractors come to them with questions on their projects, how to handle them—the best materials for the job, the latest and greatest—and our people have the answers. “It’s still a strong relationship business,” he underscores what many of you already know by heart, “and East Coast excels at that with outside salespeople who regularly pull up to jobsites to do what needs to be done. “To attract and keep accounts, communication is all-important,” Allen declares. “And that’s also where our new computer system can help. It keeps contractors informed about what the market is doing—like, commodity plywood and 2x4s. Everybody is working on slimmer margins these days just
Building-Products.com
to get the job, so it’s even more important to keep abreast on prices.” Each of the five locations serves a slightly different demographic base, but these days, remodeling—especially in the upscale communities—is carrying the business. “Those customers are more interested in quality than price, especially in the millwork, and they like the expertise we can bring.” This stream is augmented by East Coast’s ongoing commercial accounts. “We’ve built great relationships with various municipalities, school boards, and that business has continued to be a little stronger,” Allen notes. “There’s some stimulus money out there,” to feed the fire. But not enough. This owner’s big complaint—yours, too, perhaps—is that banks aren’t lending, a Catch 22 that’s holding up the industry’s recovery. But Allen is determined to follow the footsteps of the three generations who have gone before him, joined by his cousin, Don, who serves as president, and Don’s son. “We all wear many hats these days, share different areas. It’s what we have to do.” And it’s working. “Last year started up strong, then fizzled. This year, we’re seeing steady increases month to month.” Sounds like the light at the end of the tunnel to me. Carla Waldemar cwaldemar@comcast.net
November 2012 The Merchant Magazine
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OLSEN On Sales By James Olsen
Executing the basics
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A LLEN IS attributed with, “Ninety percent of success is just showing up.” Much of what is considered “The Basics” in any field is the basics flawlessly executed. In fact, 90% of our competition miss some or all of the basics on most calls. OODY
Pen: A salesperson without a pen is like a soldier without a gun. Have a pen. Have two pens—one for back up or for the customer. Bring them to the meeting with your customer. When the customer speaks, especially about product specifications or their desired outcomes—take notes. I’ve had reps tell me they can remember everything. First, this is B.S. Second, we take notes to show the customer we care. Not taking notes shows the opposite. Do not click or play with your pen.
Notepad: Have a note pad and be ready to use it. Use a spiral notepad instead of a flip notepad. We can mark the date and day of all conversations and refer to those notes in a spiral notebook. This is impossible or very sloppy with a flip notepad.
Cards: Have your cards with you. Also have a back-up box of cards in your glove box and some extras in your briefcase. Have your card out of your pocket and in your hand before you enter the building or office. Hold your card in your left hand so you can hand it to the customer and shake their right hand. When you tell the receptionist your name, give her (or him) your card. Make it easy for her to tell your customer who you are and where you are from. If you don’t, she will either give an incomplete message or a wrong message—give her your card.
Company Information: If you have company promotional material, bring it, but don’t rely on it. Brochures don’t sell. It is a conversation starter, not the presentation.
Proof: Potential customers need proof, the sooner the better. Four things we can bring to an initial meeting that will provide proof are: • Letters of recommendation. We want to stand out. Most salespeople do not take the time to get letters of recommendation, even from their most satisfied customers. Letters of recommendation are powerful in two ways: our customer gets immediate proof and we stand out from the throng of salespeople coming at them every day. • Examples of similar programs that we are running with customers similar to our target customer.
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The Merchant Magazine November 2012
dence.
• Pro-forma program we can run with them based on some assumptions about their business. This is very powerful, especially if we have good research. It is assumptive without being arrogant. We have already provided value before the order. • A written “Why Should I Buy From You?” statement. Write out specifically why our potential customer should buy from us. It will give both us and the customer confi-
Credit Choreography: We should do our best to have the credit conversation as soon as possible. We should be prepared and choreograph that conversation: Us: “Sarah, I appreciate your time today and look forward to doing business with you. Who handles your credit?” Customer: “That’s Susan.” Us: “Okay. I’ve got the form 90% filled out. I just need about three to five minutes with her and we can get you set up.” Most of the time we can fill out 90% of the form for the customer—again assumptive. They will appreciate it and be much more likely to give us the information. Credit slows down territory growth more than most steps in our initial meetings with potential customers— even the ones that like us!—so we need to practice this part of our initial meetings until it is smooth.
Connect the Call: Once the call is finished, we connect it to the next call. There may be steps the customer has to complete. If so, confirm their marching orders and when you will circle back for the information. Be specific about their steps and yours and the reconnect time. More likely, we will have to come back with a proposal. Set that as a firm appointment. If they are a qualified customer, this is essential for rapid growth. Prepare and win, or prepare to lose. Excellence in sales is flawless execution of the basics under fire. James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com
Building-Products.com
GREEN Retailing By Jay Tompt
Workshops for the green-it-yourselfer
T
WINDOW REPLACEMENT WORKSHOP Photo by Historic Green
HE DAYS ARE GETTING shorter and the leaves are dropping. For homeowners, it’s a good time to take on projects that will improve comfort and liveability for the cold, dark months ahead. For dealers and distributors, it’s also a signal to merchandise accordingly. Merchandising is simple, right? Assemble products into endcaps and floor displays, create signage to get customers thinking about projects, and tell a compelling story. Simple formula, right? The experienced merchandiser could do it in his sleep. But I say, “Wake up!” It’s not enough to sleep walk in this economic environment.Rather, it’s time to wake up, slug that cup o’ Joe, and engage the world. How? Workshops. One could plot weekend warriors on a spectrum. At one end, there’s the person who’s an engineer during the work week and home improvement mad scientist on Saturday, making every project an opportunity to innovate something the world has never seen before. Then there’s the well intentioned but clueless newbie who has trouble knowing where to begin. There’s many more of the latter and their ranks are swelling. Solution: hold workshops that appeal to both. Let’s focus on energy efficiency. We know two things about winters, they’re cold and dark. More energy is required to heat the interior of the home and inefficient windows leak it out into the neighborhood. Meanwhile, depending on what part of the country you’re in, the lights may start going on at 4 p.m. Whether expert or neophyte, your g-i-y customer will be looking to cut energy costs this
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The Merchant Magazine November 2012
winter. I suggest workshops for draft-busting windows and LED lighting. Change is difficult for people, so it’s no surprise that people are slow to adopt LED lights. It’s also a different value proposition. Old light bulbs are energy hogs, cheap and disposable. LEDs are expensive energy misers that last for a long, long time. They are much cheaper in the long run, a good investment that Warren Buffet would endorse wholeheartedly. The light quality can vary, so buy quality first. Don’t make the mistake that too many merchants make: buying lowest cost, low quality LEDs. For starters, the workshop should break it down simply: explain how they work, show the calculation on energy and money saved, payback period, and how to install. For the newbie, this part of the workshop will be a revelation. Next, break out the fixtures. Why just change a light bulb if you can change the entire fixture? Explain the benefits of matching LED lamps and fixtures, both indoor and outdoor: lamps, down lights, and strips. Demonstrate wiring and installing switches, too. You won’t hold everyone’s interest, but you’ll have served the few remaining hard-core g-i-yers, as well as demonstrated your own expertise. I recommend doing something similar for windows. There are loads of YouTube videos demonstrating tried and true techniques for draft proofing and secondary glazing. So, get together your weatherstripping, caulk and sealant, plastic film, plexiglass sheets, and magnentic tape, as well as some salvaged window frames, and you’re good to go. What these simple workshops do for homeowners is give them confidence that they can do these projects for themselves. If they have a good experience, whether firsttimer or experienced g-i-y innovator, they’ll come back for more. For you, it will bring your merchandising sets alive, you’ll sell more product, and you’ll have strengthened customer relationships. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com www.williamverde.com
Building-Products.com
Collins Shutters 2 Pro Yards
Collins Cos. closed its Builders Supply stores in Paradise and Oroville, Ca., Oct. 31, leaving the company with a single retail location in Chester, Ca. General manager Thomas attributed the closures to the struggling economy, weak construction market, and a costly new state law that would require it to retrofit its diesel truck engines to reduce pollution. The Paradise store opened in the mid-1950s, and the Oroville location opened in 1978. Eleven workers lost their jobs in
Oroville location, while 14 employees were affected at the Paradise store.
Kodiak Takes Over Colorado Drywall Distributor
Kodiak Building Partners, Denver, Co., has purchased Great West Drywall Supply, Greenwood Village, Co. Kodiak will relocate Great West’s operations to the 20-acre Aurora, Co., site of steel fabricator Barton Supply, which Kodiak acquired last year. Todd Mills will stay on to operate Great West.
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DEALER Briefs
Dixieline ProBuild shuttered its home center in Murrieta, Ca.
Cornerstone Building Alliance, Raleigh, N.C., now has majority control of ALC, Phoenix, Az., which includes Alliance Lumber, Alliance Truss, Core Materials Distribution, Arizona Structural Laminators , and ALC Transportation.
Orchard Supply Hardware
early next year will remodel its unit in San Leandro, Ca., while closing after 40 years in nearby San Lorenzo, Ca. OSH held grand reopenings Oct. 6 for its newly remodeled stores in San Jose, Ca., and Oct. 20 for its expanded W. Los Angeles unit.
Ace Hardware, Blaine, Wa., has remodeled and re-opened as part of
Whatcom Farmers Co-op.
Parr Lumber , Hillsboro, Or., opened a 2,900-sq. ft. Aloha Window & Door showroom Oct. 8 in Portland, Or., and an 8,500-sq. ft. Parr Cabinet Design Center Oct. 18 in Tukwila, Wa.
Golden State Lumber, Petaluma, Ca., is the target of a class action suit claiming the chain failed to correctly calculate and pay overtime wages.
Anniversaries: Union Lumber (Ace Hardware ), Marysville, Ca., 160th ‌ Fairfax Lumber & Hardware , Fairfax, Ca., 100th ‌ Rough & Ready Lumber, Cave Junction, Or., 90th ‌ Spenard Builders Supply, Anchorage, Ak., 60th ‌ Novato Builders Supply, Novato, Ca., 40th ‌ BMC, Boise, Id., 25th ‌
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The Merchant Magazine November 2012
– Corrections –
Second quarter revenue for LP’s OSB mills in Chile and Brazil was $43 million, not $43 billion as reported in Sept., p. 15.
Collins Cos. manages the hybrid poplar sawmill in Boardman, Or., not Columbia Forest Products as implied in Sept., p. 27.
Building-Products.com
SUPPLIER Briefs
Inter-Continental Hardwoods, Currie, N.C., has relocated its Norwalk, Ca., distribution center to Rancho Dominguez, Ca.
Lebanon Lumber, Lebanon, Or., began remanufacturing operations Nov. 1, producing stakes, lath, pallet shook, and crating components. New Vision Forest Products , Albany, Or., and Hells Canyon Lumber Sales, Hillsboro, Or., are handling sales. Colorado Timber Resources has purchased a facility in Parshall, Co., and moved in milling equipment to process 2x4s from beetle-killed trees. Simpson Strong-Tie held an Oct. 1 grand opening at its new, larger facility in Kent, Wa. At 50,000 sq. ft., the new center has twice the space for manufacturing, warehouse, showroom and training center.
Building Materials Distributors has moved its Northern California wood products division from the Port of Stockton, Ca., to its newly expanded headquarters in Galt, Ca. The 25-acre site now has 165,000 sq. ft. of warehouse space. In addition, BMD is now exclusive Northern California distributor for Marvin’s Integrity windows and doors.”
El & El Wood Products Corp., Chino, Ca., is now sole distributor of BodyGuard exterior trim and siding in California and Nevada. Taiga Building Products’ DCs in Rocklin and Sanger, Ca., are now stocking D-Blaze fire retardant treated wood for distribution to the western U.S. and Canada.
Weyerhaeuser now distributes and moulding products in California.
WindsorOne trim
Huttig Building Products has entered into a supply agreement to pre-hang and distribute Masonite’s exterior steel and fiberglass doors in California.
Fiberon PVC and composite decking, railing and fencing are now being distributed by Lumber Yard Supply, Great Falls, Mt.; BMC , Boise, Id.; Associated Building Material Distributors of America, El Dorado Hills, Ca., and Guardian Building Products.
Robinson Lumber & Flooring’s Carson, Ca., DC is now stocking Nature Flooring Industries’ exotic solid prefinished flooring for distribution in California, Oregon, Washington, Idaho, Nevada and Arizona. Epicor Software Corp., Dublin, Ca., completed its $155-million purchase of Solarsoft Business Systems, owner of Progressive Solutions, Richmond, B.C.
TimberTech has partnered with FastenMaster to create TimberTech Cortex hidden deck fastener for perimeter and replacement boards and stairs. TimberTech is also teaming with Feeney, Oakland, Ca., to produce a complete railing system featuring TimberTech’s composite railing with Feeney’s stainless steel CableRail infill. Building-Products.com
November 2012 The Merchant Magazine
27
MOVERS & Shakers
Bob Shepherd is retiring Dec. 31 after 40 years in the industry, the last 17 as lumber sales mgr. for Sierra Pacific Industries, Redding, Ca. Ray MacDonald is a new panel buyer for BlueLinx, Englewood, Co. Craig Kadlecek is new as a senior national account executive. Mark Blattie, Osmose, Denver, Co., has been promoted to western regional mgr.-customer services for the U.S. Wood Preserving Group, succeeding the recently retired Jim Basler. Scott Cathcart, ex-Fiberon, has joined Fortress Railing Products, Richardson, Tx., as Mountain States territory mgr. He is based in Golden, Co. Nick Axtman Jr. is the new general mgr.-exports at Sumner Wood Treating, Sumner, Wa. Grady Mulbery has been promoted to v.p. of manufacturing for Roseburg Forest Products, Dillard, Or. Mark Graham, ex-West Trend Exteriors, is new to sales at Taiga Building Products, Rocklin, Ca.
Dan Grebenc, ex-Martin Door Mfg., has joined Fiberon, as regional sales mgr. for Colorado, Utah and New Mexico. Brian Smith has been named sales mgr. of the new panel division of Mill Direct Lumber, Lake Oswego, Or. Traders include Al Marsh and Larry Cleverley, both ex-Western International; Josh Renshaw, exPeninsula Plywood; Don Lampert, ex-Buckeye Pacific; Andrea Cowell, ex-Bridgewell Resources; Jordan Staples, ex-Sherwood Lumber, and Glen Anderson, exWood Brokerage International. John Gooding, ex-Rocky Mountain Forest Products, has been named national sales mgr. at Contact Industries, Portland, Or. David Billingsley, ex-United Pacific, has been named general mgr. of Elk Creek Forest Products, Independence, Or. Brian Grays is a new account mgr. at Capital Lumber, Healdsburg, Ca. Todd Newman, ex-Honsador, is a new field account rep for HD Supply, Tucson, Az.
Bud Filler, former owner of Filler King, Homedale, Id., has retired after more than 50 years in the industry. Scott Campbell, Azek Building Products, Lodi, Ca., has been promoted to district sales mgr. for the Southwestern U.S. Joy Holloway has joined the sales team at Blue North Forest Products, Kamiah, Id. Justin Nagle, ex-Wood Windows Inc., has joined the outside sales force at Mountain West Window & Door, Eagle, Id. Gary Mattson has joined Orchard Supply Hardware, San Jose, Ca., as department mgr. Aaron Linerud, ex-Lumber Yard Supply, is new to inside sales at Allweather Wood, Washougal, Wa. Greg J. Griffin, ex-J.E. Higgins/ Golden State Flooring, is now sales & marketing mgr. for EverBright Flooring, Hayward, Ca. Marc Heidt, Douglas County Forest Products, Roseburg, Or., has been promoted to purchasing mgr. Mike Kinnebrew, ex-FoxworthGalbraith Lumber, has been named general mgr. of Direct Lumber & Door, Denver, Co.
Three Things I’ve Learned: Tips from Seasoned Pros
Kristin Stelle, ex-TimberTech, is now in outside sales for International Wood Products, Clackamas, Or. Justin Harrod, SRS Acquisitions Corp., Colorado Springs, Co., has been promoted to Mountain States district mgr. Ray Cornelius, Stock Building Supply, West Jordan, Ut., has been promoted to location mgr. Cathy Farwell, ex-Simpson, is a new OSB supply planner for Weyerhaeuser, Tacoma, Wa. Jim Benson has joined Simonton Windows as Orange County, Ca.based national account mgr. Gerard DiManna, Beacon Roofing Supply, Denver, Co., has been promoted to sales director for the Mountain district. Jennifer Doss-Icenhower, exPacWood Milling, is a new siding & milling specialist at High Sierra Custom Door, Truckee, Ca. Bryan Johnson is new to Meek’s Lumber & Hardware, Gardnerville, Nv. Ed Arden, ex-Gearhart Builders Supply, has joined Brothers Door & Trim, Gearhart, Or. Dan Chadderdon, Beacon Roofing Supply, Denver, Co., has been pro-
moted to branch mgr. Glenn Renner, president/c.o.o., HomeSphere, Denver, Co., has been appointed to the board of PureColor Inc., Albuquerque, N.M. Heather Sharp Knutson is now director of marketing for HomeSphere, Denver, Co. Haiyu Yu is now handling export sales to China for Taiga Building Products, Burnaby, B.C. Gita Sheikholeslami is new to export sales to the Middle East and emerging markets. Andrew Mittag, Agrium Advanced Technologies, and Scott Thomson, Talisman Energy, have been elected to the board of International Forest Products, Vancouver, B.C. Jack Merry has retired after 30+ years with APA-The Engineered Wood Association and Engineered Wood Technology Association. Sheila Cain succeeds Merry as communications director of EWTA, which publishes the Engineered Wood Journal. Dwayne Pipe heads the plumbing department at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.
SUPPLIER Briefs
PureColor relocated its headquarters and wood finishing products manufacturing plant from Santa Fe, N.M., to a larger facility in Albuquerque, N.M.
Northwest Hardwoods’ western hardwood operations earned
Programme for the Endorsement of Forest Certification chain-of-custody certification.
Silvaris Corp., Seattle, Wa., is now exclusive sales agent for all B grade and Shop grade hardboard products from Decorative Panels International’s manufacturing facility in Alpena, Mi.
Simpson Strong-Tie and Robert Bosch Power Tool have formed a strategic alliance to jointly pursue sales, marketing, and product development opportunities in the concrete construction market. SST’s latest version of DeckTools allows users to design with generic decking products not currently available in the software. Tutorial videos are available on YouTube.
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Jones Passes Senecaʼs Reins
a unique succession plan. As an active University of Oregon alumni, Jones hired professors from the Lundquist School of Business to teach the three women all aspects of Seneca’s business processes and management. Today, Seneca employs more than 375 workers and sustainably manages
Photos by Walter Ralston
LA HARDWOODS
Aaron Jones, owner and founder of Seneca Sawmill Co., Eugene, Or., has passed leadership of the 60-year-old family of businesses to his three daughters, Becky, Jody and Kathy. The three women have worked in a variety of positions at the company,
from forestry to mill design to management, over the last 25 years. They will continue to work closely with c.e.o. Rick Re, who continues to oversee day-to-day operations of the Seneca Family of Companies. Jones began preparing his daughters to take the helm in the 1980s with
LOS ANGELES Hardwood Lumberman’s Club held its Alan Bohnhoff Memorial Golf Tournament Oct. 4 in Costa Mesa, Ca. [1] Bill Fitzgerald, David Hutchinson, Karen & Jim Sparky. [2] Walter Ralston. [3] Marty
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The Merchant Magazine November 2012
Fox, Steve Alberts, Jason Brettingan, Craig Jordan. [4] Tim & Darlene Peterman. [5] Mark Brothers, Kevin Trussell. [6] Dan Lobue, Ken Lobue. [7] Alan Arbiso, Kevin Tranter, Jim Gaither.
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more than 165,000 acres of Oregon forestland. The Seneca Family of Companies consists of Seneca Sawmill Co., Seneca Jones Timber Co., Seneca Sustainable Energy, and Seneca Noti.
UFPI Buys Pallet Maker
Universal Forest Products subsidiary UFP Washington has acquired the operating assets of 75-year-old Nepa Pallet & Container Co., with plants in Snohomish, Yakima and Wenatchee, Wa. Patrick Sherry, co-owner and president of Nepa, will stay on as general manager of operations.
theft, so his termination by Rocky Mountain Lumber violated state law and the criminal charges are the result of malicious action by the company. Jumper is demanding a trial by jury and is seeking four years of wages and fringe benefits, with interest, plus reimbursement of his attorney fees and compensatory and punitive damages. According to court documents, Rocky Mountain’s purchasing manager conducted an inventory and discovered a large amount of building materials was unaccounted for. He report-
edly overheard Jumper and a co-worker talking about a building project at Jumper’s home, where he discovered a large amount of lumber in Rocky Mountain logo wrapping. Jumper reportedly told a detective that he had purchased the lumber from two other companies, but the receipts he provided allegedly did not match up with the lumber. If convicted, Jumper faces up to 10 years in jail and a fine of up to $50,000. His next hearing is scheduled for Jan. 16.
Murphy Tangles with Partners to Prevent Stock Sale
The four relatives who own Murphy Co., Eugene, Or., are in a legal dispute over the future ownership and direction of the company. C.e.o. John Murphy, who has overseen tremendous expansion of the company over the last several years, filed suit against his three partners— Peter Murphy Jr., top executive of the company from 1974 to 1996; Dennis Murphy, who worked for the company during the mid-1970s, and Edward Murphy, a retired attorney who has never worked for the company. John, Peter and Dennis Murphy each own 28.6% of the company shares; Edward Murphy owns 14.3% percent. John Murphy is asking the judge to prevent Peter Murphy from selling his stock to Dennis and Edward Murphy, and to stop the three from selling their shares—or the entire company—which John Murphy said would circumvent the terms of a 2001 buy/sell agreement approved by all four owners. The Murphy family has been in the timber business since the early 1900s. Today, the firm owns veneer peeling plants in White City and in Elma, Wa.; a laminated veneer lumber plant in Sutherlin, Or.; a hardwood plywood plant in Eugene, Or., and a softwood plywood plant in Rogue River, Or.
Theft Suspect Sues Yard
A former employee of Rocky Mountain Lumber, Kalispell, Mt., who was charged with stealing nearly $43,000 worth of lumber, is suing the company for wrongful termination and malicious prosecution. James Jumper, who pleaded not guilty to a felony charge of theft, argues that he did not commit the Building-Products.com
November 2012 The Merchant Magazine
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BlueTarp Launches Marketing Services to Dealersʼ Customers
BlueTarp Financial, Portland, Me., a trade credit and marketing services provider for the building supply industry, has launched a new eMarketing platform to help its business partners increase sales by keeping dealers better connected with their customers. Offered exclusively to qualified customers, BlueTarp eMarketing Services provides customized emails to the dealer’s customers. These regularly distributed emails include direct advertising, exclusive eDeals, and eSurveys that provide customer insights to dealers. The BlueTarp eMarketing Services team will provide analytics, including how many customers opened the email, results of the surveys, and sales trends over time. “Our field and market research shows the average contractor buys from seven different suppliers on a regular basis and 60% of these contractors want direct email communication,” said c.e.o. Scott Simpson. “Any time suppliers can get their name in front of contractors—with BlueTarp doing most of the heavy lifting—the better it is for their business. We help our dealers increase sales, while giving them time to focus on providing outstanding customer service and growing their business.”
Remodeling Poised to Take Off
Home improvement activity is expected to reach double-digit growth in the first half of 2013, according to a study by Harvard University’s Joint Center for Housing Studies. “After a bump in home improvement activity during the mild winter, there was a bit of a pause this summer,” noted managing director Eric S. Belsky. “However, we’re now projecting an acceleration in market activity beginning this quarter, and strengthening as we move into the new year.” The study was designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. It provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry. “Strong growth in sales of existing homes and housing starts, coupled with historically low financing costs, have typically been associated with an upturn in home remodeling activity some months later,” said director Kermit Baker. “While the housing market has faced some unique challenges in recent years, this combination is expected to produce a favorable outlook for home improvement spending over the coming months.”
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The Merchant Magazine November 2012
Building-Products.com
Worker Injured at Oregon Mill
A millworker whose right arm was severed above the elbow in an Oct. 22 accident at Mary’s River Lumber’s mill in Philomath, Or., has had his arm surgically reattached. Doctors said the initial prognosis was favorable. Jesus “Jessie” Cardonda Gonzalez, 40, was hired through Selectemp, Salem, Or., and had worked for Mary’s River off and on for a year. At the time of the accident, he was working in the fencing plant, operating a hula saw that is used to cut lumber into smaller pieces. The plant was shut down as state officials began their investigation.
ber of retailers declining at an annual rate of 2%, from 43,008 in 2007 to 38,936 in 2012. Consolidation will increase in the next five years, but should remain modest. An improving economy will likely encourage new firms to enter the industry, at an average annual rate
of 2.3% over the next five years. Since lumber accounts for about 65.4% of LBM sales, volatile lumber prices have also caused problems. “This trend has made it difficult for retailers to anticipate future spending and control costs,” said IBISWorld analyst Andrea Alegria.
Lumber Dealers Turn Corner
Revenue for LBM retailers is expected to grow 7.6% to $100.8 million by the end of the year and will continue to rise over the next five years, according to a new report by IBISWorld. Industry revenue has declined at an average annual rate of 6.1% over the last five years, with profit declining from about 3.1% in 2007 to about 2.1% in 2012. Falling margins have caused many operators to exit the industry or consolidate, with the num-
Building-Products.com
November 2012 The Merchant Magazine
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FAMILY Business By Jane Hilburt-Davis
What if disaster hits your firm?
T
strike anyone at anytime. In fact, no company or family can escape some crisis at one time or another. First, let’s define crisis. It’s any unplanned event, occurrence or sequence of events that you have not had to deal with before. It might be external to the business: an economic downturn, hurricane, terrorism, earthquakes. It can also be internal to the business: the death or disability of the founder, workplace violence, product failure, management failure. Whatever the cause, the key to survival is planning and the ability to take the long view. Traditionally, family businesses have been better able to do this and, as a result, are often more resilient. For example, the owners of a family-owned clothing store in the heart of New Orleans were the first to reopen their business, just seven weeks after Katrina hit. They credit their recovery to a lot of luck, meticulous planning, and a large dose of determination. Just imagine that you got a call in the middle of the night from the town’s fire department telling you that your building was in flames that were spreading quickly. Imagine that you began to suspect your c.f.o. of manipulating the books to pad his own pockets. What are you doing to prepare for any of these? Too far-fetched? Imagine that on your way to work tomorrow you have a pain in your chest and down your left arm. You ignore it until lunch when your assistant, worried about how you look, insists on calling the doctor. You are rushed to the hospital and, soon after, die in the operating room. What do your family and business do to survive your sudden death? RAGEDY CAN
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What have you done to plan for this? Let’s look at some of the things you can do to plan and prepare: Planning: Obviously, prevention is best. The irony is that the very definition of a crisis is that it is an event that can’t be fully planned for. However, there are things you can do. For example, you can evaluate the ways in which your family or company are most vulnerable to a catastrophe. Try to identify possible risks and what can cause them, evaluating the probability of such an event. Any company should have an internal “alarm system.” In the best companies, bad news travels up fast. Pay attention to the warnings about product problems, about fire hazards, about bizarre employee behavior, and employees’ concerns about a succession plan for the founder. Preparation: Put a crisis plan in place before one is needed. One study found that the cost of preparing for a natural disaster was one-seventh the cost incurred without preparation. So, it pays to plan. (1) Create a crisis management team and identify a spokesperson who is prepared to be the ideal company spokesperson to the stakeholders, public, clients, suppliers, etc. (2) Develop a manual describing what is done and who does what in the event of a crisis. Keep plans current. (3) Always keep an up-to-date employee contact list and make sure key executives have copies of that list on their cell phones or in their wallets. Rubenstein laminates a wallet-sized card for each manager with contact information for several employees. (4) Consider establishing a company phone number outside of the immeBuilding-Products.com
diate area code for employees to contact for updates. (5) Evaluate your company data and where you back it up. If possible, store important information related to customer records, inventory, accounts payable, sales, insurance and auditing offsite. (6) If you are forced to evacuate, take as many forms of communication as possible with you. Laptops, PDAs, and cell phones are all valuable tools for getting in touch with employees. The more avenues of communication, the better. (7) If possible, pay your employees to help retain them. Establish directdeposit payroll accounts for all employees, ideally managed by an offsite payroll. (8) Make sure you review your insurance policies annually and know what your coverage includes, especially in the event of a catastrophe. Read those policies carefully. (9) Be accountable to and for all you employees. Plan for methods to reassure employees and to account for missing employees, if necessary. Identify alternative places to work. Counseling may be needed, immediately and longer term.
Death at the Top
As the song says, “Everybody wants to get to heaven but no one wants to die.” Death is not a subject that any of us want to dwell on, especially if it’s our own. However, founders of companies who don’t have a succession plan can create financial as well as emotional chaos in the company they have nurtured and spent their lives on. The risks are high and the problem is real. I According to a Mass Mutual/ Raymond Foundation survey, of the c.e.o.s 61 years or older who plan to retire in five years, 55% had not chosen a successor. In two companies we now work with, the employees are very concerned that there is no succession plan for the founder/president. Good stewardship is the hallmark of responsible family business ownership. It requires us to protect and care for what has been entrusted to us in our businesses. Others come to rely on owners for many things, not the least of which is their leadership during a crisis. This expectation creates an immense responsibility: to anticipate the needs of the business, especially in the event of the ultimate crisis, an unexpected death. Building-Products.com
Create a short-term leadership team who will meet with advisors and stockholders. Decide who will be the spokesperson for the leadership team, to communicate with your customers, banks, and other stakeholders, giving reassurance that it’s business as usual. Tell the truth and tell it fast with openness and consistency, being realistically upbeat and reassuring. Be as specific as you can. Develop a written document—an emergency management letter— describing who does what and what is done. It should also include: Guiding philosophy: What overriding principles of your business are important for your successors to continue? Interim structures: How should the company be managed, the family organized around it, and ownership handled in the interim and the future? Direction and outside support: Who should be involved in determining key issues related to direction of the company, and how should that input be organized? Benchmarks: What metrics, or key success factors, need to be monitored—and what should those benchmarks be? Location of documents: Where do you keep the important personal and business documents that will be needed in handling that transition? Finally, involve the stockholders, board, executive management team, and family to put into operation the plans that you’ve made. Keep plans current and review them regularly. Have disaster drills. Meet with your family and board. Begin the meeting with: “You have just had a phone call that I have been hit by a beer truck. I don’t survive. Now, what is the plan? Who’s going to do what, when?” How quickly both the company and the employees rebound is directly related to the planning and preparation completed beforehand. Knowing what to do and how to do it, while in the midst of the crisis, gives everyone a sense of control and security that helps the recovery phase. As the saying goes, “failing to plan is planning to fail.” – Jane Hilburt-Davis is president of family business consulting firm Key Resources, LLC, Boston, Ma., and coauthor of Consulting to Family Businesses. Reach her at (617) 577-0044 or at j.hilburtdavis@comcast.com.
Reprinted with permission of Key Resources LLC. No portion of this article may be reproduced without its permission.
November 2012 The Merchant Magazine
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NEW Products
Look of Fine Marble
Porcelain tile with the look of fine marble is the latest offering from Mediterranea USA. The collection is available in three colors—Select, Café and Venatino—with three different finishes: polished, brushed and honed. Standard sizes include 12”x24”, 18”x18”, 12”x12”, and 6”x6”, along with mesh-mounted 2”x2” mosaic and 3”x12” bullnose pieces.
MEDITERREANEA-USA.COM (305) 718-5091
Self-Adhering Membrane
Seal & Coat EiFS tape from MFM Building Products is a self-adhering membrane that bonds with most exterior coatings to provide a waterproof, selfsealing layer. The product can be used around windows and doors, to tape panel seams and other openings, and as self-seams around common fasteners. It adheres to most clean, dry surfaces, including housewrap, masonry, concrete, OSB, and other common building materials.
MFMBP.COM
(800) 882-7663
Tool for Hidden Fasteners
National Nail’s Marksman Pro-X1 is a hidden deck fastener for wood decks. An interchangeable rear spacer provides automatic 1/16” spacing for minimal gapping, while a front spacer is fixed at 3/16”. The tool clamps securely to deck boards and has dual screw guides, so both sides of the board can be fastened with single tool placement.
NATIONALNAIL.COM (800) 968-6245
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The Merchant Magazine November 2012
Building-Products.com
Look of Natural Stone
New Heritage manufactured stone panels from ProVia offer the look of stone with lighter weight and faster installation for residential and light commercial applications. The Natural Cut Stone collection features fossilization and color variations like those found in nature— Woodbridge, Fernwood and Ashworth—and can be stacked or grouted. PrecisionFit Stone panels have irregular edges and interesting patterns of stacked stone, but install quickly. Colors include sage gray, adobe sands, and driftwood. Both lines are handrafted from molds of actual stone, to capture the depth and detail of natural stone.
PROVIAPRODUCTS.COM (800) 669-4799
All-in-One Insulation
Rmax Thermasheath-SI provides structural bracing, continuous insulation, air barrier, and water barrier in one product. The structural insulated sheathing features Rmax polyviso foam insulation at its core, bonded to reflective, reinforced aluminum foil facers. No OSB sheathing is required.
RMAX.COM
(800) 527-0890
MOST BUYERS DON’T ASK FOR SIDING BY BRAND. TO THEM, SIDING IS SIDING. UNLESS, OF COURSE, THEY HAPPEN TO BE LOOKING AT A HOME WITH SIDING THAT MAKES THAT HOME DISTINCT. THAT MAKES IT DIFFERENT FROM THE HOUSE NEXT DOOR AND THE HOUSE DOWN THE STREET. IN WHICH CASE, SIDING IS THEN MORE THAN JUST SIDING. IT’S A SELLING POINT. TRUWOOD. THEY’RE ASKING FOR IT, EVEN IF THEY DON’T KNOW IT BY NAME.
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TruWood’s material content is backed by third-party certifier Scientific Certification Systems. SCS-MC-01178 | www.scscertified.com | FSC-C002971
November 2012 The Merchant Magazine
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Super Wood Stain
Superdeck transparent stain from Duckback penetrates to protect exterior wood from damage. A three-oil formula and enhanced pigment concentration promises long-lasting one-coat protection against water and UV damage.
SUPERDECK.COM (800) 825-5382
Tile Roof Underlayment
Dry-Roof underlayment from CertainTeed offers long-term weather protection for tile roofs. Manufactured from self-adhering, high-strength polyester fabric with SBS-modified asphalt, it can be used under foam-applied clay tile without nailing.
CERTAINTEED.COM (800) 233-8990
Help with the Shakes
A new tool from SBC reportedly makes installation of cedar shakes and shingles up to three times faster than traditional methods. Manufactured from annealed spring steel, the tool slips under shingles so a ledger board can be temporarily held securely in place. Using the top of the board as a guide, shingles install perfectly.
SBCCEDAR.COM (418) 594-6201
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The Merchant Magazine November 2012
Building-Products.com
Zippy Dust Barrier
ZipRail dust barrier from ZipWall creates a tight seal along the floor and ceiling without tape. The product has a patented spring-loaded telescopic pole and foam-rail crossbar that locks plastic sheeting into place for protection during demolition, drywall work, and other projects that create fine dust.
With Cascadia decking, the unsurpassed natural beauty of Western Red Cedar is matched with Terminal Forest Products’ renowned manufacturing quality. This creates a product that is beautiful, functional, and eco-friendly. Cascadia decking is made from a 100% renewable and sustainable North American resource unlike PVC and composite decking, which is largely made from non-renewable petroleum products. Third-party life cycle analysis clearly shows WRC decking as the best environmental choice for decking: WRC significantly outperforms sustitute products in every environmental measure. Distributed by
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Rain Barrier
Rain Barrier HD from Thermafiber is a continuous insulation with consistent density throughout its entire thickness. The mineral wood board is non-combustible, fire resistant, energy efficient, and is available with up to 90% certified-recycled content.
THERMAFIBER.COM (260) 563-2111
Building-Products.com
November 2012 The Merchant Magazine
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Treated Decking Screws Low Voltage Lighting
Deckorators’ new line of low-voltage accent lighting illuminates outdoor living areas. Featuring the latest energy-efficient LED technology, the lights are durable, long lasting, and inexpensive to operate. Whether purchased separately or in a kit, the lights are easy to install and coordinate with Deckorators balusters and accessories.
Simpson Strong-Tie’s DSV decking screws are designed for use with preservative-treated wood decking, fascia, and trim. The heavy #10 shank diameter is designed to withstand the expansion or contraction common with fastgrowth lumber. With its fast-start hi-low tip, the screw easily pierces deck boards, while the rimmed flat-head with underhead nibs ensures easier countersinking. Options include a hand-drive version and collated screw strips for use with SST Quick Drive auto-feed screw driving tool are available.
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The Merchant Magazine November 2012
ACQ CCA BORATES D-BLAZE® ACZA (CHEMONITE®))
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Flooring Adhesive
MP Global Product’s VersaStick is a pressure-sensitive adhesive for luxury vinyl tile/ plank and multi-ply engineered plank hardwood flooring. Low-Voc and solvent-free, the adhesive spreads easily and has high initial tack and superior shear strength. It cleans up easily when wet and reportedly will not harden in the container after opened.
QUIETWALK.COM (888) 379-9695
Devilishly Sharp
Diablo Tools’ flawless finish saw blades deliver precise, splinter-free cuts on fine moulding, veneered plywood, melamine, and more. An ultra-thin kerf feature enables portable jobsite saws to perform at the level of workshop stationary saws. The blades also feature an axial shear face grind design and a non-stick aluminum alloy coating.
DIABLOTOOLS.COM (800) 334-4107
Building-Products.com
November 2012 The Merchant Magazine
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MASTERING Leadership By Susanne Biro
The power of no
I
AM A Seth Godin fan. If you are not familiar with him, you just might want to be. Indisputably one of the great marketing minds of our time, Seth is a clear and poignant communicator of big, important ideas. Simply put, his messages matter not only to your ultimate professional success, but to the success of your industry overall. Recently, Seth posted the following list of “no’s” on his blog: • No. • No, we don’t take clients like that. • No, that’s not part of what we offer. • No, that market is too hard for us to service properly. • No, I won’t bend on this principle. • No, I’m sorry, I won’t be able to
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have lunch with you. • No, that’s not good enough. Will you please do it again? • No, I’m not willing to lose my focus, and no, I’m not willing to compromise. A simple but effective reminder of how critical it is to know who you— and your brand—are, is served up in the power of a single word: no. The clearer you can be about who you are, the stronger and more valuable your offering, and your brand, will be. When you know who you are—what your values are, what you stand for, what you will offer and how—the better able you can be in setting the necessary boundaries. In plain language, it’s about learning to say “no” to the many opportunities in which you could partake but, when push comes to shove, probably
The Merchant Magazine November 2012
shouldn’t. As is reiterated by the French artisan baker Lionel Poilâne, “In business, it is very important to be able to say ‘no’ when you feel like saying ‘yes’ would mean losing your soul.” Knowing who you are remains at the core of our decisions and is a powerful place to come from when so many either don’t know who they are or worse, try to become too many things to too many people. In short: When you know who you are, you can focus. When you know who you are, you can say, “No.” I find it curious that many people feel they have to be dishonest to others when faced with a choice between making up a story or simply saying: “No, I’m sorry I won’t be able to have lunch with you.” Why should the reality be so difficult to say? Far too many people feel they have to come up with some excuse or reason as to why they cannot—or simply do not want to—do something that’s not in the best interest of themselves personally or professionally. The implications of this disempowered state—the avoidance of a simple no—is highly relevant to what occurs in more important, professional matters. And, that is to say nothing of what it is like to be on the receiving end of disempowered people. For example, if I ask you to lunch and you claim you didn’t get my voice message until too late, but when your story doesn’t add up, the result is that I no longer trust you. The very outcome you were hoping for—to not damage our relationship because you simply don’t feel like lunching today or have other things you’d rather do— is exactly what results. I find it sad so many talented peoBuilding-Products.com
ple feel so vulnerable professionally that they don’t yet know the freedom and success that can result when they finally stake claim as to who they really are. In the words of the late Steve Jobs: “And it comes from saying ‘no’ to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying ‘no’ that you can concentrate on the things that are really important.” Many of us admire the contributions and brilliance of Steve Jobs and wish we could be more like him. What we fail to recognize, however, is that the opportunity to be the kind
of person worthy of our own admiration is always right in front of us. And it’s summed up in a two-letter word: no. Now, let’s make this personal: 1. What are your top five values? 2. What is your ideal professional reputation? Write it down. 3. Do your answers to the above align with your organization’s brand? 4. How well do your daily interactions deliver on your ideal professional reputation – your personal leadership brand? 5. If I came to your organization and spoke with the people with whom you most interact, how many would be able to recite your answer to questions 1 and 2? Given the above revelations, what is the one thing (yes, one thing) you most need to focus on in 2013? And, given the above, are you committed to using the word “no” a little bit more? I hope the answer to that is, well, yes.
– Susanne Biro is a senior leadership coach with Bluepoint Leadership Development, Loveland, Oh., and coauthor of Unleashed! Leader as Coach as well as the Leader as Coach Workshop. Reach her at susannebiro@bluepointleadership.com or (888) 221-8685. Reprinted with permission of Bluepoint Leadership Development. No portion of this article may be reproduced without its permission.
Building-Products.com
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ASSOCIATION Update
West Coast Lumber & Building Material Association (formerly Lumber Association of California & Nevada) elected Augie Venezia, Fairfax Lumber & Hardware, Fairfax, Ca., as it new president during its annual convention in Monterey, Ca. Other new officers are 1st v.p. Mark Ganahl, Ganahl Lumber, Anaheim, Ca.; 2nd v.p. Sean Fogarty, Osborne Lumber, Newark, Ca.; treasurer Bobby Senften, Friedman’s Home Improvement, Santa Rosa, Ca.; 2nd Growth rep Danny Sosa, Pacific Wood Preserving, Bakersfield, Ca., and past president Richard McArthur, Ojai Lumber, Ojai, Ca. Directors are Victor Fresca, ProBuild; John Mensinger, American Lumber; Jeff Pardini, Hills Flat Lumber; Matt Petersen, Mead Clark Lumber; Vic Hausmaninger, HBLA CPAs; Seamus O’Reilly, LP Building Products; Mike Potthoff, DMSi; Jim Turrentine, Cargotec USA; Chris Thoman, Simpson Strong-Tie; Chris Swanson, Swanson Group Sales. The 2012 President’s Award went to Rick Roberts, Sunnyvale Lumber,
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Sunnyvale, Ca., while 2012 Associate of the Year went to Jim Turrentine, Cargotec USA. Retiring board members David Thom, Bruce Bauer Lumber & Supply; Bob Shepherd, Sierra Pacific Industries, and John Neel, Reliable Wholesale Lumber, were honored for their service. Mountain States Lumber & Building Material Dealers Association will host its annual holiday party Dec. 6 in the Mile High Stadium Club at Sports Authority Field (formerly Invesco Field), Denver, Co.
APA-Engineered Wood Association honored Allyn C. Ford, president and c.e.o. of Roseburg Forest Products, Dillard, Or., with its Bronson J. Lewis Award for leadership and outstanding contribution to the EWP industry.
Los Angeles Hardwood Lumberman’s Club will host its annual holiday party Dec. 8 at Mr. Stox restaurant in Anaheim, Ca.
The Merchant Magazine November 2012
National Lumber & Building Material Dealers Association during its recent industry summit in Savannah, Ga., installed new chairman Chuck Bankston, Bankston Lumber, Barnesville, S.C., succeeding Cally Coleman Fromme, Zarsky Lumber Co., Victoria, Tx. Other new officers include chairelect Chris Yenrick, Smith-Phillips Building Supply, Winston-Salem, N.C.; 1st vice chair J.D. Saunders, Economy Lumber, Campbell, Ca.; 2nd vice chair Scott Yates, Denver Lumber, Denver, Co.; treasurer Linda Nussbaum, Kleet Lumber Co., Huntington, N.Y.; manufacturers & services council chair Roger Dankel, Simpson Strong-Tie, McKinney, Tx., and federated association executives chair Paula Siewert, Northwestern Lumber Association, Minneapolis, Mn.
North American Deck & Railing Association welcomed new president Bill Ross, Fiberon, New London, N.C., during its recent annual meeting in Baltimore, Md. Newly elected directors are Brent Gwatney, MoistureShield, Springfield, Ar.; Laura Kueny, DecksDirect.com,
Building-Products.com
Saint Louis Park, Mn.; Lainie Sleppin, Mid-State Lumber, Branchburg, N.J.; Matt Breyer, Breyer Construction, Reading, Pa., and Gus DelaCruz, Barrett Contracting, Millstone Township, N.J.
IN Memoriam
Richard Kirk Morse, 81, owner and founder of Canby Builders Supply, Canby, Or., died Oct. 16 in Charbonneau, Or. During high school, he worked in his father’s lumber business in Astoria, Or. He later attended the University of Oregon and served in the U.S. Army. In the mid-1950s, he went to work for Newport Building Supply, Newport, Or. He and his wife, Carole Lee, bought Canby Builders in 1959.
Franklin Bruce “Frank” Ivanovich, 91, longtime Southern California lumberman, died Oct. 10 in Newport Beach, Ca. After graduating from USC, Mr. Ivanovich served in World War II as a radio dispatcher in London, England. Afterwards, he started his lumber career at Orben Lumber, Pasadena, Ca. In the late 1960s, he joined Al Pierce Lumber, Newport Beach, Ca. By the early 1980s, he owned and operated his own business, Ivanovich & Co., Newport Beach. He then worked at Jewett-Cameron, San Clemente, Ca., retiring in 1990.
Mary Eloise Johnson, 70, coowner of Cascade Forest Corp., Shelton, Wa., died Oct. 20 in Shelton after a year-long battle with cancer. She and her husband, Al Johnson, founded the business in 1983 and worked side by side for nearly 30 years.
Kenneth James “Jim” Hall, 87, former president of Western Machinery Corp., Portland, Or., died Sept. 21. After serving in the Coast Guard during World War II, he graduated in business and mechanical engineering from Oregon State University and joined his father’s company manufacturing equipment for the forest products industry. In the late 1970s, he became an independent manufacturer’s representative. Building-Products.com
November 2012 The Merchant Magazine
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WEST COAST DEALERS Photos by The Merchant
WEST COAST Lumber & Building Material Association hosted its annual convention Oct. 18-19 in Monterey, Ca. [1] Chris Thoman, Sam Marcoux, Troy Monier, Ryan Julien. [2] Paul Herrfeldt, Greg Bates, Jim Mackall. [3] John Niedzwiecki, Greg Stine. [4] Mike O’Dell, Mike Martin. [5] George Johnson, Sean Fogarty. [6] Chris Swanson, Chuck Wert. [7] Connie & Bob Shepherd. [8] Ken Dunham, Larry Stonum. [9] Rena & John Saunders. [10] Jamie Taylor, Anita Olsen, Bill Kuhn. [11] Kevin & Glenda
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The Merchant Magazine November 2012
Paldino. [12] John Neel, Marv Askey. [13] Bobby Senften, Monika Bartko. [14] Jeff Pardini, Patrick Lenihan. [15] Mary Ann Von Bank. [16] Bill Hayward, Marc Mizgorski, Pete Grossman, Greg Brooks. [17] Rick & Debbie Hagle. [18] Warren Schuckies, Marc Mizgorski. [19] Miguel Gutierrez, Bob Palacioz, Thom Wright, John Mensinger. [20] Steve Prado, Ken Womack. [21] Brian Hurdle, Victor Fresca. (More photos on next page) Building-Products.com
WEST COAST DEALERS Photos by The Merchant
MORE WCLBMA (continued from previous page) in Monterey: [1] Miguel Higinio, Steve Almanza. [2] Mike Potthott, Charlene Valine. [3] Pam Petersen, Charlie & Debbie Cain. [4] John Hedges. [5] Amparo & Steven Patterson. [6] Jim & Karen Bell, John Pasqualetto. [7] Matt Petersen, Chuck Bankston. [8] Michael Caputo, Danny Sosa. [9] Rick Roberts, Brian Bunt. [10] Mark Ganahl, Karsten Vardas, Pete Fleming, DeeDee Graham, Pete Ganahl. [11] David Abbott, Jerry Dunn. [12] Tom Building-Products.com
Couch, Scott Kassahn. [13] Troy Allen, Jacob Emmons, Greg Guilfoil. [14] Sheryl & Richard McArthur, Scott McArthur. [15] Lacy Palacioz, Bob Palacioz. [16] Donna & Augie Venezia, Victoria & Larry Heiges. [17] Jean Henning, Alan Oakes, Karin Caputo. [18] Jay & Holly McArthur. [19] Kevin Henley, Tom Fogarty, Dave Trybon. [20] Pam Schuckies, Alayne McClendon. [21] Thomas Stremlau, John Kavanaugh. November 2012 The Merchant Magazine
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DECK EXPO Photos by The Merchant Magazine
DECK EXPO landed at Baltimore Convention Center, Baltimore, Md., Oct. 10-12. [1] Mike Rodenhaus, Dan Ivancic. [2] Shannon Huneycutt, Dan Grebenc, Carol Kelly. [3] Brooke Whiteside, Alan Oakes, Rachel Avara. [4] Craig Jacks, David Elenbaum, Stuart Dimery. [5] Rick Ralston, Jim Miller. [6] Nancy Hamilton, Karl Sedlarz. [7] Scott Ricke, David Jacobson. [8] Glenn Eberle, Bill Tucker. [9] Adam Gangemi, Doug Reid, Katie Eberly. [10] Kim Drew, Charlie
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The Merchant Magazine November 2012
Jourdain, Jessica Hewitt, Carter Welch. [11] Ulf Konradsen, Wayne Hilton. [12] Bill Schaffer, Lee Robinson. [13] Scott McCrawley, Tom Heard. [14] Brian Orchard, Phil Lail. [15] Mike Coffey, Chris Johnson. [16] Paul Houck, Ted Davis. [17] John Forbis, Ralph Leyh. [18] Gary Roth, Erica Savage, Tom Curtin. [19] Tom Horvat. [20] John McGill, Bill Griffith. [21] Gary Bernstein, Ken Bernstein. [22] Erik Kiilunen. (More photos on next page) Building-Products.com
DECK EXPO Photos by The Merchant Magazine
MORE DECK EXPO (continued from previous page) in Baltimore: [1] Joao Alexandre Malinski, Lucas Lundin, Romel Bezerra. [2] Chris Kollwitz, Ken Panitt. [3] Jay Peterson, Darrell Hungerford. [4] Terry Brady, Brett McCutcheon, Dustin Schroeder. [5] Paul Cavanelli, Dean Place. [6] Stephen McNally, Chuck Anson, Tim Luttrell. [7] Wanda Angel, Cindy Miller, Coy Green, Jerome Zenoby. [8] Vern Vincent. [9] Frank Butterfield, Peter Krihak, Robert Simon. [10] Tom Zimmerman, Brian Below, Eric Murff, Steve Schulz. [11] Chantale Pitts, Brad Finck. [12] Gerald Heatherington, Will Prichard. [13] Cathy Schaefer, Travis Jungers, Kelli Bergen. [14] Lisa Martin, Jamie Kreiser. [15] Flo Sanchez, Brent Gwatney, J.C. Rentschler. [16] Kirk Hammond, Mark Smith, Huck DeVenzio, Erin Canosa. [17] Shawn O’Keefe, Lauren Booth. [18] Joe Dilio, David Kenworthy. [19] Joe Belden, David Peterson, John Burkhart. Building-Products.com
November 2012 The Merchant Magazine
49
SPI OPEN HOUSE Photos by Sierra Pacific Industries
SIERRA PACIFIC INDUSTRIES recently hosted its annual open house in Redding, Ca. [1] George Emmerson. [2] Ron Burch, Scott North. [3] Dave Hancock, Chris Caldwell. [4] Robbie Gillen, Rock Belden, Tom Love. [5] Clark Taylor, Rick Robbins. [6] Terry Stevenson, Jim Frank. [7] Ted Roberts, Andy Faircloth. [8] Chuck Balsano. [9] Jon Miller. [10] Jon Hagen, Stephen Shaw. [11] Bill Kleiner, Ryan Kleiner. [12] Bill Jones, George Hammann. [13] Nate Hull, Eric Shelby, Gene Hull, Steve Lane. [14] Sal Camarda, Aaron Sulzer. [15] Tom Wright, Charlie Moss. [16]
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The Merchant Magazine November 2012
Marion Ward, Jeff Ward. [17] Danny Osborn, Jack Chase, Jason Rovig, Randy Wake. [18] Greg Baker, Jason Fulkner. [19] David Furman, Harold Dodero. [20] Tom Liberator, Gary Morgan. [21] Jim Nicodemus, Mike Carey, Lindsay Olsen. [22] James Martson, Scott Hill. [23] Joe Derrah, Terry Kuehl. [24] John Banks, Jeannie & Scott Mackechanie, Marty Fox. [25] Greg Topping. [26] Charlie Phillips. (More photos on next page) Building-Products.com
SPI OPEN HOUSE Photos by Sierra Pacific Industries
SPI OPEN HOUSE (continued from previous page): [1] Red Emmerson, Al & Pauline Lewis. [2] Randy Roget, Lance Donalson, Neil Rassmusson. [3] Heather Hampton, Gene Cloud, Dan Harris. [4] Karen O’Connell, Bob Taylor, Greg Myers, Steve Nelson. [5] James Danielson, Dave Durst, Padam Malepati, Jonny Wilford. [6] Jerry Mosier, Darren Dearman. [7] Bob Shepherd, Ron Schneider. [8] Robert West, Todd Pollard. [9] Joe Laberge, Jim Talley. [10] Terry Rasmussen. [11] Troy Building-Products.com
Bailey. [12] Charles Wright, Chip Brittain. [13] Mike Vinum, Jack Butler. [14] Doug Hanson, Gage Holland, Ron Hanson. [15] Mark Pawlicki, Cecil Wetsel. [16] Mark Hefley, Dan Wolter, Jim Brennan. [17] Tom Nelson. [18] Chris Tritschler, Bob Palacoiz. [19] Nestor Pimentel, Theresa Ragudo. [20] Roy Cobble. [21] Bill Muncrief, Tirzah Chase. [22] Matt Carlton, Bill Nabozny. [23] Brad Schneider, Barry Schneider. [24] Tony Ledendecker, Dan Fisher, Jeff Matthews, Mark Lathrop. November 2012 The Merchant Magazine
51
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NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.
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The Merchant Magazine November 2012
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DATE Book
Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.
APA-The Engineered Wood Association – Nov. 9-13, annual meeting, Ritz Carlton, Amelia Island, Fl.; (253) 565-6600; www.apawood.org.
North American Building Material Distribution Association – Nov. 13-15, annual convention, held in conjunction with North American Association of Floor Covering Distributors, Hilton, Orlando, Fl.; (888) 747-7862; www.nbmda.org.
Black Bart Hoo-Hoo Club – Nov. 14, initiation meeting, La Hacienda Restaurant, Cloverdale, Ca.; blackbarthoohoo181.org. Southern California Hoo-Hoo Club – Nov. 14, dinner & speaker meeting, Anaheim Hills, Ca.; (760) 324-0842; hoohoo117.org.
U.S. Green Building Council – Nov. 14-16, Greenbuild conference & expo, Moscone Center, San Francisco, Ca.; (800) 795-1747; www.greenbuildingexpo.org.
West Coast Lumber & Building Material Association – Dec. 6, 2nd Growth holiday meeting, Embassy Suites, Brea, Ca.; (916) 235-7490; lumberassociation.org. JLC Live Residential Construction Show – Dec. 6-7, Oregon Convention Center, Portland, Or.; (972) 536-6461; northwest. jlclive.com.
Mountain States Lumber & Building Material Dealers Assn. – Dec. 7, annual holiday party, Mile High Stadium Club at Sports Authority Field, Denver, Co.; (303) 793-0859; www.mslbmda.org. Portland Wholesale Lumber Association – Dec. 7, annual Christmas lunch, Embassy Suites Airport, Portland, Or.; (503) 203-6463; www.portlandwholesalelumberassociation.org.
Los Angeles Hardwood Lumberman’s Club – Dec. 8, annual holi-
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day party, Mr. Stox, Anaheim, Ca.; www.lahlc.net.
Home & Garden Shows – Jan. 4-6, Oregon Convention Center, Portland, Or., and Washington State Convention Center, Seattle, Wa.; (800) 374-6463; www.homeshowcenter.com.
San Diego Home Show – Jan. 11-13, San Diego Convention Center, San Diego, Ca.; (888) 433-3976; acshomeshow.com. Black Bart Hoo-Hoo Club – Jan. 16, industry night, Broiler Steakhouse, Ukiah, Ca.; (707) 621-0485; www.blackbarthoohoo181.org. Humboldt Hoo-Hoo Club – Jan. 17, crab feed, Elks Lodge, Eureka, Ca.; (707) 601-9128.
Western Pallet Association – Jan. 18-22, annual meeting, Rancho Las Palmas Resort, Rancho Mirage, Ca.; (360) 335-0208; www.westernpallet.org.
Guardian Building Products – Jan. 20-22, market, Paris Hotel, Las Vegas, Nv.; (800) 569-4262; www.guardianbp.com.
Do It Best Corp. – Jan. 23-24, winter conference, Arizona Biltmore, Phoenix, Az.; (260) 748-5300; www.doitbestcorp.
National Association of Home Builders – Jan. 22-24, international builders show, Orange County Convention Center, Orlando, Fl.; (800) 368-5242; www.buildersshow.com.
Renovation & Remodeling Show – Jan. 25-27 Portland Memorial Coliseum, Portland, Or.; (800) 374-6463; homeshowcenter.com.
National Assn. of Wholesaler-Distributors – Jan. 29-31, executive summit, Fairmont, Washington, D.C.; (202) 872-0885; naw.org.
Budma 2013 – Jan. 29-Feb. 1, international construction fair, Poznan, Poland; (317) 293-0406.
Western Building Material Association – Jan. 30-Feb. 1, annual convention, Doubletree Lloyd Center, Portland, Or.; (888) 5519262; www.wbma.org.
November 2012 The Merchant Magazine
53
IDEA File The Sweet Smell of Success
ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].
Advantage Trim & Lumber [www.advantagelumber.com]..........41 Ainsworth [www.ainsworth.ca] ................................................28-29 Allweather Wood Treaters [www.allweatherwood.com] .............25
Arch Wood Protection/Lonza [www.wolmanizedwood.com] .......5
Bear Forest Products [www.bearfp.com].....................................53
California Redwood Co., The [californiaredwoodco.com]..........23
Canfor [www.canfor.com]....................................................Cover III
Capital [www.capital-lumber.com]....................................39, 41, 43
Duckback Products [www.superdeck.com].................................33
Eco Chemical [www.ecochemical.com] .......................................26
Fontana Wholesale Lumber [fontanawholesalelumber.com].......4
GRK Fasteners [www.grkfasteners.com].....................................27
Hoover Treated Wood Products [www.frtw.com]........................44
HOLIDAY GALLERY at Almquist Lumber, Arcata, Ca., dresses up store and pleases customers—both old and new.
Every day of the year, Almquist Lumber is
a wonderland of select hardwoods, fine tools, and creative inspiration to woodworkers in Arcata, Ca.—and beyond. So it’s fitting that the store puts on a real show during the holiday season, by hosting an annual Woodcraft Gallery sponsored by the Humboldt Woodworking Society. Filled with affordable gifts crafted by local woodworkers, the show brings in lots of customers from mid-November through New Year’s Day. “It brings a nice ‘buzz’ to our gallery area and gets us all dressed up for the holiday season,” says owner Eric Almquist. “We provide the space and a fresh-cut Douglas fir tree from our Kneeland timberland.” Each year, Almquist devotes a good portion of the store’s ad budget to promoting the year-end show in local newspapers. He believes it’s money well spent because he sees lots of new faces each year, and local woodworkers appreciate his support. The show is held in a 50 ft. by 50 ft. area at the front of the store, which serves as a gallery throughout the year for local art and photography, woodworking creations, antique and new woodworking tools, and howto books. “Six years ago, when we reviewed the architect’s plans for our new building, bathrooms were designated for this area near the entrance,” says Almquist. “We thought we could make better use of it.” Opposite the gallery is Dick Taylor’s Chocolate Co., which is owned and operated by Adam Dick and Dustin Taylor—two avid woodworkers who prepare handmade, single-source chocolate bars. “Now our store smells of rich chocolate, with a background of woods and finishes,” notes Almquist. “They do a good business during the holidays, too.”
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The Merchant Magazine November 2012
Huff Lumber Co. .............................................................................31
Humboldt Redwood [www.getredwood.com] ..............................25
Idaho Forest Group [www.idahoforestgroup.com] ............Cover II Ipe Clip Co., The [www.ipeclip.com].............................................32
J.H. Baxter [www.jhbaxter.com]....................................................45 Keller Lumber Co............................................................................45
Norman Distribution Inc. [www.normandist.com].......................39
Osmose [www.osmose.com] ................................................Cover I Pacific States Treating ...................................................................36
Pacific Wood Preserving Cos. [www.pacificwood.com].............21
Quality Borate Co. [www.qualityborate.com] ..............................30
Redwood Empire [www.redwoodemp.com]...................................7 Roseburg Forest Products [www.rfpco.com] ..............................17 Royal Pacific Industries .................................................................38
Simpson Strong-Tie [www.strongtie.com]...................................19 Siskiyou Forest Products [siskiyouforestproducts.com]...........13
Sunbelt [www.sunbeltracks.com] .................................................42
Superior Wood Treating [www.superiorwoodtreating.com].......43
Swanson Group Sales Co. [swansongroupinc.com]........Cover IV
TAMKO Building Products [www.tamko.com]...............................3 Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....40
TruWood-Collins [www.truwoodsiding.com] ..................8A-8B, 37 Utah Wood Preserving Co. ............................................................33
Viance [www.treatedwood.com] ...................................................11
Wahoo Decks [www.wahoodecks.com] .......................................15
Weyerhaeuser [www.woodbywy.com] ..........................................3 Western Red Cedar Lumber Assn. [www.wrcla.org] .............34-35
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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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