84 Lumber Aggressively Opens, Closes Yards

Over the next three years, 84 Lumber Co. will close 67 underperforming stores, while opening 125 new locations-in an effort to increase annual sales from $4 billion to $10 billion by 2009.

"As we analyzed our (return on assets) over 521 stores, we determined that we needed to make some tough decisions regarding underperforming stores and to close them, so that we can better utilize our assets on a national basis," said president Maggie Hardy Magerko. "The stores we are closing are not performing to consistent levels required by our business model and are located in nogrowth or rural markets that have either matured or never reached their projected potential from a housing start perspective."

84's benchmark is a minimum of 3,000 housing starts annually.

"We are in the process of opening 50 new stores in 2006, and already have 42 new store locations slated for 2OO7," ahead to 2008, we are actively reviewing more than 20 new store sites at this time."

The expansion will result in a net increase of at least 1,000 nerv outside sales representatives. The restructuring also includes expanding the company's installed sales program. increasing manufacturing through 84 Components, and increasing sales to large, national production builders.

The closings include only trvo yards in the West-Gillette and Rock Springs, Wy.-but also l3 stores in Ohio. l2 in Pennsylvania. seven in Tennessee, five in New York, four in West Virginia, three each in Indiana, Michigan and Kentucky, two in Arkansas, Georgia, Illinois, Missouri, and North Carolina. and one each in Maryland, Mississippi, New Jersey, South Carolina, and Virginia.

In markets with multiple stores, sales personnel and clients will be transferred from closed locations into nearby existing stores.

Store openings in 2006 include Florence and Yuma. Az.: Rialto and Visalia, Ca.; Meridian, Id.; Reno, Nv.; Forest Grove and Redmond, Or.: Spanish Fork and West Jordan, Ut.

Other closing include eight yards in Florida. seven in Texas. four in Louisiana. three in Tennessee. two each in Alabama. Illinois. Minnesota. North Carolina. and Virginia, and one each in Oklahoma, Mississippi, Pennsylvania. South Carolina, and Wisconsin.

84 Lumber 86'e8 Tournay

A week after announcing it would close 67 stores, 84 LJmb€r is dropping its sponsorship of its annual PGA golf tournament in Farmington, Pa-

This will be the last year for the 84 LumberClassic.

Company founder/golf enthusiast Joe Hardy launched the tournament three years ago and quickly built up its msterof narc golfers, partially through lavishing perks on the participants, as well as improving its play dates and publicity.

For over forty years, on EL&EL for competitive prices, innovative Dfoduct solutions. Call lmagine endless possibilities.

Weyco Builds EWP Plant

Weyerhaeuser started construction of a TJ-Shear Panel plant in Chino. Ca., that is scheduled to start production in August. The nerv facility is being built on a company site that already has a commercial truss plant.

"This nerv facility indicates the level of confidence that Weyerhaeuser has in Chino and Southern California's ability to provide for such a mill," said plant manager Steve McDaniel. "Situated to meet our customers'needs. this project is very exciting and rvill produce a valuable product designed to promote safety during wind and earthquake events."

Warehouse Chain Grows

A year after being acquired by Home Depot's pro-oriented division. Contractors' Warehouse. North Highlands, Ca., is in high-grolth mode.

When Home Depot Supply acquired the chain from Jeld-Wen last summer, Contractors' Warehouse had seven locations. This month, it opens its eleventh-near Dallas. Tx.-and its trvelfth-a second Sacramento. Ca.. area store in Rancho Cordova-opens in early August.

"We are on a very fast expansion track ri_sht norv." said president Rich Fiechter. rvho founded the chain in r 983.

Although Contractors' Warehouse won't divulge its precise expansion plans. it has said there are 300 underserved markets across the countrl Fiechter stressed that does not mean Contractors' Warehouse will build 300 ne*' stores. only that it rvill evaluate the markets as possibilities.

The avera_qe Contractors' Warehouse is 65.000 sq. ft.. althou_eh nes'er stores are lar-ger. The prototlpe is 88.000 sq. ft. for the store rvith an additional 45.000 sq. ft. for the indoor drive-through lumber I'ard. The locations added since Home Depot took over have been retrofits of existing buildin-es.

State Sues Eel River Owner

The state of California has filed suit against the orvner of Eel Rir er Sarvmills. Eureka. Ca.. for not properly rvarning rvorkers before la1 in-e thern off last summer.

The sarvmill's o\\'ner. Buck Olsen. had def'ended not providin-c emplorees rvith advance notice by' explainin-s that he rvas still actively seeking capital tcr avoid closin-e the business. The state said it filed suit after Olsen failed to respond to requests to substantiate his defense.

Olsen acquired the mill site from Eel Rirer Sa*mills in 2003. operated it for trvo vears. then shuttered the facilitl in Juli 200-5.

Former sorkers maintain that Eel River rras obli,eed b1. state and t-ederal la\\'s to proride emplorees $,ith 60davs advance notice of anr la1off or pror ide them * ith 60-da1 s \\'a-ses.

Rains Flood Dealer-Again

For the second time in thrc'cmonths. record-setting rains causc-d flooding at Goodman Building Suppli. Mill Vallel. Ca.. but the storc' reopened the same afiernoon.

Just da1 s before the March storm. general mana-ser Zr iki Gor rin had instructed sorkers to remove sandbags from around the store. "We reallr thought this uas the end of s'inter." said Govrin. "We're alsars prepared for things like this. Floodin,e is a rra1 of life fbr us."

The storm marked the area's f lst da1 of rain. toppin-s a record set in 1975. Parts of the store *ere t-looded rr ith more than I feet of u ater. s'hich caused estimated losses of 55.000. An earlier storm on Nes Year's Eve caused about S lff).000 in damages.