Itts my turn

j'\Nce upoN A rlue family business patriarchs had it \-feasy when it came to deciding who would take over the family business.

Centuries-old customs required that the eldest son received control of the family business upon the death of the father. No one ever retired. Business literally lived or died based on the often-unknown management skills of the male heir, which often were not revealed until dad died.

Today, family business succession is handled with more forethought and under the greater scrutiny of inheritance laws. Affluence, combined with people living longer complicates the difficult decisions of when and how to pass the reins of the family business-with the least harm to the business and family.

The question of who gets to run the family business is complicated, of course, by relationships within the family. Numerous clients have confessed that they are troubled about how to pass the business without destruction. While many still plan to be an integral part of their business for several more years, they realize that their desire to work long hours had waned in recent years. They are slowing down. What worries many of them is deciding which of the heirs will make the better leader in the long run.

One client commented that he felt "a little like Solomon in the Bible, trying to divide my baby, my business, between two heirs. Somehow that seems almost easier than picking one over the other. I love what I do," he said, "but I don't see that same passion in either my daughter or son."

But that passion might actually be there, just displayed in a different way because each person has a unique per- sonality. Indeed, the heirs may be eager to have their turn at running the business. These kinds of dilemmas are far from unusual, and they underscore the very subjective emotions that cloud the business choices a senior family member must make about the future of the business.

If it's any comfort, the challenge of passing on the family business is a worldwide problem. A family feud over who should run the Hyundai Group, South Korea's largest conglomerate, brewed up a dispute that involved the national government. Finally, the S4-year-old founder of Hyundai appointed one of his sons as the sole group chairman to end the family squabbles. But this decision came in the face of a national movement to discourage family dynasties that do not involve shareholders and board members.

The image of passing a baton on to the next person in a relay race is a familiar one. It is an apt image for businesses in which a family business leader hands over the responsibility to a child. Even under the best of circumstances, it can be a difficult and awkward time of transition.

For the elder leader, it means giving up control not only of the business but also of the parent-child relationship. The relationship rarely stays the same at home once control is relinquished at the workplace. Moreover, the parent becomes dependent upon the success of the business in a different way and may feel vulnerable to the business decision being made by the child.

As in a relay, once a runner passes the baton, he spends the rest of the race as spectator and cheerleader, but no longer contributes directly to the outcome. For an entrepreneur who feels he has been the sole motivator for the birth and continued success of the business, this new limitedpartnership role requires a new understanding, a new patience. Furthermore, few people are prepared for the slowing down that all of us should expect as we get older.

It is important to see that a relay race is the perfect metaphor for life. We humans are designed to pass on our knowledge and possessions from generation to generation. The human lifespan is a natural cycle that begins with a period of development and learning followed by a long middle period of accrued experience and activity followed by a gradual diminishing of energy and ability. When a senior family member acknowledges this natural cycle, the transition can be accomplished with less strain and less

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Pacific States Taking Over Hoquiam Plywood Mill

Pacific States Industries. San Jose. Ca., has acquired Hoquiam Plywood, Hoquiam, Wa., and had hoped to restart the facility by the end of May.

Formerly owned by a co-op of 100 employees, the mill closed late last year due to poor market conditions

According to general manager Mark McFeely, the facility has been renamed Hoquiam Plywood Products and expected to rehire roughly 60 workers.

Millworkers Douse Blaze

Before firefighters could arrive, employees at Stimson Lumber Co., Gaston, Or., were able to extinguish a small sawdust fire in the mill's powerhouse May l.

Once on the scene, firefighters discovered that millworkers had knocked down parts of the wall to douse the blaze, as well as all hot spots.

"Most of our guys didn't even go into the building because Stimson crews had it knocked down." said spokesman Ken Bilderback. "Their employees did a great job."

Amid Bankruptcy, Lumber Products Readies for Layoffs

Lumber Products, Tualatin, Or., will lay off 65 workers, including its chief financial officer and vice president of sales and marketin g, June 29

The company filed for Chapter I I bankruptcy protection in April, with debts and assets ranging from $ l0 million to $50 million. Most of the affected employees work at headquarters, in

Quolity Weslern

the company's accounting, human resources, and sales divisions.

Workers own a majority stake in the company, through a stock ownership program started in 1986.

Members of the Hall family, which founded the company 75 years ago, control an I 1.1% share.

In addition to its Tualatin base, the company operates eight distribution branches in Washington, Idaho, Utah, Arizona, and New Mexico.

"Lumber Products does not anticipate an increase in its operations (and workforce) in the near future, and thus, expects the upcoming layoffs to be permanent," wrote Chapter I I Trustee Edward Hostman.

Western Lumber Producers Cautiously Optimistic

Lumber sales in the Pacific Northwest are slowly rebounding, but insiders predict that a full recovery from the housing slowdown will take years.

"People call it the Great Recession, but for this industry it was the Great Depression," said Allyn Ford, president of Roseburg Forest Products, Roseburg, Or. "We're talking about a slow and steady increase, which gives us the opportunity to get back on our feet. It's not going to be the boombust thing we'vc experienced in the past, but it should be a slow and steady increase."

Weyerhaeuser, Federal Way, Wa., is also feeling optimistic. "We expect increased revenue in the second quarter, compared to the first quarter," said spokesperson Anthony Chavez. "We also anticipate that volumes will increase by 107o."

He cites several reasons for the gains, including new domestic and international customers, more efficient mills, and rising multi-family demand.

Other producers report smaller gains, but remain cautious. "We're not going to see any huge uptick in the near future," said Ken Maurer, RSG Forest Products, Kalama, Wa.

Sawmills throughout the West produced 3.1 billion bd. ft. of lumber in the first three months of the year, a modest 2.8o/o gain compared to the same period in 2010, according to the Western Woods Products Association. Production at inland mills increased nearly l07o,andO.57o at coastal mills.

Tweedy & Popp Ace Hardware, Seattle, Wa., closed its 5-yearold Richmond Beach, Wa., store May 13 and will open a new storeEdmonds Hardware & Paintin nearby Old Milltown on Aug. 1.

AG Supply Co., Wenatchee, Wa., held a grand opening last month at its 6th Ace Hardw?IO branch, in Sultan, Wa. (Chuck Estes, mgr.)

Ace on Fax opened a 16,000-sq. ft. Ace Hardware franchise in Denver, Co. (Mary and Mike Cottrell, owners).

Peach Tree True Value Hardware, Grand Junction, Co., is buying a 70,000-sq. ft. site in Fruita, Co., to build its 2nd location.

Navaio Westerners Ace Hardwar'e Stores is remodeling its stores in Window Rock and Kayenta, Az., to mimic the look and product mix of its new flagship location in Chinle, P.z.

Tri-State Ace Home Center relocated its Bullhead City, Az., store to a larger, 20,000-sq. ft. facility.

Kenvon Nobel Lumber & Hardware, Bozeman, Mt., held a May 12 grand opening for its new garden center.

HomCo Ace Hardw?ro, Flagstaff. Az.. has earned FSC chain-ofcustodv certification trom Scientific Certification Systems.

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LiteSteel Packs lt In

Australian steel manufacturer

OneSteel has shuttered its LiteSteel Technologies light structural beam business.

LiteSteel's three-year-old plant in Troutville, Va., discontinued production March 30.

Although the division was unable to turn a profit marketing "the first new structural building product to be introduced into the U.S. market since engineered wood," it reportedly achieved 7O7o recognition in a mainly commodity market.

Redding Lumberyard Moves

to Former Competitor's Home

Weaver Lumber has moved across the street in Redding, Ca., to a site formerly occupied by Moss Lumber & Hardware, which closed last August after 65 years ofbusiness.

"I want to make sure that people know I feel a lot of humility to be going over to that side," said owner Brent Weaver.

"We were always competitors, but we also did a lot of business with each other," said Charlie Moss. "We would

ntages In Siding

work together. We weren't at each others' throats at all."

In the months after Moss went out of business, Weaver acquired its store inventory and truss business from the holding company that had purchased Moss'assets.

"It was really the truss business that got the ball rolling," said Weaver. "I was always interested in the truss business because it was the last piece I needed to complete the full circle of our services."

Helicopter Forestry Firm Sold

Wilbur-Ellis Co., Walnut Creek, Ca., has acquired the assets of Farm & Forest Helicopter Service, Napavine, Wa.

Acquisition of the 48-year-old Farm & Forest will increase WilburEllis' footprint in the region, expand its aerial application services, and add to its forestry customer base in the Northwest. The new acquisition will be a part of the Agribusiness Division's Northwest operations.

For the last 15 years, Wilbur-Ellis has provided Farm & Forest with forestry protection products.

Osmose has agreed to be acquired by Oaktree Capital Management, Los Angeles, Ca.

Osmose's existing management team, led by president/c.e.o. James Spengler, will remain.

Kelly-Wright Hardwoods, Anaheim, Ca., inked a s-year lease to relocate to a 62,650-sq. ft. DC on 3.8 acres in Brea, Ca.

Merritt Bros. Lumber Go., Athol, ld., shut down one day and sustained slight damage to a huck hailer from a May 3 fire that started in a sawdust hopper.

Capital Lumber's DCs in Denver, Co.; Salt Lake City, Ut.; Dallas and Houston, Tx., are now distributing Railing Dynamics' new preassembled RDI Metal Works Excalibur railing system.

Screw Products Inc., cig Harbor, Wa., has signed Feldman Wood Products, Garden City, N.Y., as a new dishibutor for its fasteners.

McFarland Cascade, Tacoma, Wa., is proud to announce that its Terratec Composite decking received an evaluation report (ESR#205'|) from ICC Evaluation Service (|CC-ES), providing evidence that the ricehull/recycled plastic composite decking meets code reouirements.

Redwood Empire, san Jose, Ca., has launched a new websitewww.buyredwood.com-as part of a new marketing campaign to emphasize the increased availability of uppergrade redwood.

The site provides the distribution community, architects, contractors and homeowners with information on the environmental attributes and natural durabili$ of redwood.

Eastman Chemical Co.'s

Perennial Wood received honorable mention for the Meotutr,t Award for Material of the Year from Material ConneXion.

Deceuninck North America's window products have been GreenCircle certified for recycled content and closed-loop products.