How a Utah wholesaler's redwood business expanded

IEHL LUMBER Products, Inc. was founded in 1957 by WarDiehl and his son, Larry Diehl.

The elder Diehl had been a lumber broker since 1929 and knew his way around the lumber business. Ini- tially, Diehl Lumber worked with local lumber mills in Salt Lake City, Ut. One of their major markets was supplying fruit packing boxes.

Today, Diehl Lumber Products, Inc. is in the hands of the third generation, Terry Diehl, who started working in the family business when he was 16. Over the years, the company has enjoyed a steady growth and evolution. Now with sales of $44 million, 104 employees, 2l acres of land, brand new remanufacturing facilities and nearly 300,000 square feet of space under cover, Diehl Lumber Products, Inc. supplies retailers in six states with a full line of building materials.

Story at a Glance

Third generation Salt Lake CitY wholesaler expects a 50olo increase in redwood business this year due to new facilities, products and expanded inven' tory firm sells in six states, does $44 million in sales.

Diehl Lumber has carried redwood since they first started buying lumber from the West Coast, but in the last two years they have greatly expanded their redwood program. When Diehl started expanding into redwood sidings as a competitive alternative to cedar, the move proved to be a fortuitous one. With recent interruptions in the cedar supply, this has been a good time to introduce competitively priced redwood lumber products, Terry Diehl says. He expects a 500/o increase in redwood sales this year as a result of new facilities, new products and a greater inventory in the full line of redwood products.

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Utah Wholesaler

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He explained that changes in the lumber business have altered the roles required of wholesalers. "The mills don't carry the inventory that they used to and the margins at the retail end of the business are way down, so store managers don't want to carry a large inventory. They are interested in turns. 'How fast can we turn the inventory to produce our profit?' "

As a distributor, Diehl decided that to adequately service his customers, he needed to stock more redwood and enhance his ability to respond to their needs. "ln January of 1986, our redwood inventory was at 550,000 board feet. Right now, we have over L5 million board feet. We have the stock on hand, commons and uppers, seasoned and green."

The newly installed planer and resaw facilities play a key role in Diehl's plans to expand their redwood business by providing greater service. They are air seasoning rough redwood, then miling it to customers' orders. The result is a bright, clean and extremely stable redwood product. Diehl can also provide the special siding patterns architects like to specify and meet any special orders in all the grades of redwood.

Combined with the greater inventory, the capacity to remanufacture redwood lumber enables Diehl Lumber Products, Inc. to respond quickly to customers' needs.

Since 1981, Diehl Lumber Products, Inc. has hosted an annual buYing show. Sales manager Matt Lar-

Redwood Story Hits The Road

The story of redwood is being carried to the dealers by the California Redwood Association in a series of personal appearances in cooperation with state lumber and building materials assobiations.

Last month CRA marketing and technical representatives spoke to Mountain State Lumber and Building Material Dealers Association wholesalers and retailers in Ogden and Salt Lake City, Ut. Topics covered during the slide presentation explained the new seasoned garden sen explained that this year over 200 dealers came to shop the products of 43 different manufacturers. Like a small trade convention, the show, which is held in the winter, helps distribute sales more evenly throughout the year for Diehl and their suppliers. Retailers are able to make their buying decisions during a period when their own businesses aren't as hectic. Special prices and terms are an added incentive that make this event attractive to lumber and building supply merchants. grades of redwood and marketing opportunitities in the growing outdoor living markets.

Diehl Lumber Products, Inc. is in a perfect position to supply Utah, Colorado, Idaho, Nevada, Arizona and Wyoming with the complete line of redwood products. Listening to Terry Diehl, it is apparent that the company is going to continue to evolve and expand, finding new ways to meet the needs of the inland region.

Later this year CRA representatives will speak at the Arizona Lumber & Builders Supply Association's 66th annual convention in Tucson, Az. Major topics to be discussed will include new redwood products and expanded marketing opportunities.

Early in 1987 the CRA teamed up with the ALBSA to exhibit redwood decking and rustic siding products in a booth at the Construction &

Architectural Suppliers Show in Phoenix, Az. Capital Lumber Co. built the redwood exhibit which was manned by a CRA representative who handed out over 1000 pieces of redwood literature to builders and architects attending the show.

The CRA also has presented a program for the San Luis Obispo Ca., chapter of the American lnstitute of Architects and moderated a seminar on deck construction for the Building Industry of America. Both aimed to promote redwood.