Oil dependency and the LBM supply chain

[tHu urL spll r t:l the Culf ol Mcxieo is a huge cnrironI mental calanrity. but it should serve as a wake-up call fbr the LBM supply chain for another reason. Why'?

The spill will certainly have an impact on local cconomies and local LBM dealers. But the spill is emblematic of much a bigger issue-the end of cheap oil. And that will shape the futurc of this industry. brin-uing tough challcnucs :rnd treen opp()rtunities.

Many analysts are pointing out that rnost, or all, of the world's easy oil has been extracted and what's lett is vastly norc challenging, energy intensive. and expensive to obtain pumping oil l'rom -5,000 ft. deep on thc lloor of the Gulf is but one example. Meanwhile. according to a U.S.

Department of Energy report, new oil discoveries are lagging consumption. Some analysts have pointed out that the point of peak oil production may have been reached, or may be reached soon.

Peak oil, as the phenomenon is known' is based on the work of Shell Oil geologist M. King Hubbert, who showed that just as an oil well reaches a peak in production long before the oil deposit runs dry, so too, does an oil producing region have a peak in its production curve. Once the peak is reached, production volumes flatten out, then decline. Add the fact that worldwide demand for oil is growing (car sales in China and India are going through the roof!), and if we are at or near a peak oil situation, then oil prices will surely rise and perhaps very rapidly.

The LBM supply chain is predicated on cheap transportation costs. When fuel prices rose dramatically during ihe summer of 2008, many distributors and dealers took hits to their already small margins. While that price spike was due, at least in part, to Wall Street speculators. it provided a taste of what an expensive oil future will bringhigher transport and commodity costs, and marginal businesses going bust.

So, how can you prepare and create resiliency within your organization? First, start shifting your own product mix. Identify those products most vulnerable to rising oil orices and find better alternatives suci as local and green products. This will also help you meet the rising demand ior such products. Look especially at those solutions that help your customers (or their customers) become more sustainable or self-reliant.

Also, find opportunities to supply a greater range of need within your community or operating area. If gas prices rise dramatically, your customers will be looking for one-stop shoPPing.

Dealirs and distributors should also be actively seeking ways to reduce gasoline or diesel use within their own operations. Electric vehicles or diesel trucks that run on locally sourced, recycled cooking oil might be viable optioni. Increasing drop ships, from manufacturer to dealer o. fro- distributor to end-user, will help, too, but only marginally.

Finally, get involved in community efforts to create local resiliency to oil energy shocks. Transition U.S' (www.transitionus.org) is a new and growing network of groups throughout the country-69 at last count-aiming io finO ways within their own communities to reduce their dependence on oil. GrouPs like these are gaining influence with local policy makers, and their efforts naturally support green building and like-minded local businesses. Your involvement will help you identily emerging opportunities, make imPortant connections within Your community, and get suPport for reducing Your own oil dependency.

JaY TomPt Managing Partner Wm. Verde & Associates (4ls) 321-0848

Durastrandflooring

Weather happens. Wet wood swells. Such are the facts. The good news is, at last there's a solution engineered to address the challenge head on. PointSlX'" Flooring and pointSlX Durastrand Flooring feature a patented taperededge technology that offsets the effects of moisture, eliminating the need for sanding.

Rustic Beauties UnderFoot

Armstrong's Rustics Premium line now includes New Ensland Long Plank laminate floorin!.

The floorboards are more than 7 ft. long, with the look of handscraped, oil-finished hardwood.

Available in five colors, the tongue-and-groove boards can be locked in place.

I eRusTRoNG.CoM

(7l'7) 397-0611

Quieter Gompound

Green Glue noise-proofing compound reportedly can be used between layers of drywall or other building materials to decrease sound transmission by up to 90Vo.

The products are water based, non-toxic, low-VOC. and exceed LEED building standards.

I GREENGLUECOMPANY. COM

(866) 435-8893

Whey Better Finish

PolyWhey from Vermont

Natural Coatings is a waterborne polyurethane finish for exterior wood that cleans up with soap and water.

The environmentallv friendlv finish includes whey p.ot.int-u byproduct of cheesemakingthat reportedly create a natural bond with wood. It may be used on new, pressure treated, and weathered wood for a quick-drying finish.

Choose from Caspian clear, acorn brown, or autumn red. in quarts or gallons.

I VERMONTNATURALCOATINGS.COM

(888) 639-9439

Taped Solution for Waterproofing

Peal & Seal PowerBond

White 250 can be used to tape seams on roof and gutter repair. window flashing, and as a general-purpose waterproofing product.

An asphalt adhesive and UVstable outer film forms a lonslasting protective barrier.

The 50' rolls come in both 4" and 6" widths, in white only.

T SOLUTIONS.MFMBP.COM

(800) 882-7663

Better Gutter Govers

Leaf Relief gutter covers from Ply Gem reportedly can drain more than 29" ofrainfall an hour.

Built of solid aluminum, the covers lay flat and prevent overflowing by keeping debris out of gutters.

I PLYGEM.COM

(800) 587-1339

Plug the Deck

Starborn's Smart-Bit Pro Plug System includes everything needed to install a deck with invisible fasteners.

Included are the Pro Plug tool for pre-drilling and counter-boring, stainless or hardened steel fasteners, replacement drill bits, a Titebond glue nozzle, and wood plugs to match a variety of wood species.

T STARBORNINDUSTRIES.

COM

(800\ 596-7741

Exterior Wood Protection

Sansin's 2-Coat DEC stain uses modified natural oils and a water-borne formulation to protect exterior wood.

The product reportedly allows wood to breathe. allowing it to adjust to natural moisture levels. Available in 79 colors. it can be used on old or new wood to repel water and provide protection from UV exposure

I SANSIN.COM

(817\ 126-1461

Bosed in Annopolis, MD, Fletcher Wood Solutions@ is the lorgest monufocturer o{ defect-free. oppeoronce grode rodioto pine products in New Zeolond. Distributing our cleor boords, mouldings, LIFESPANo treoted wood, ond lumber to the North Americon morket through our proven ond completely integrcted supply choin, Fletcher Wood Solutions@ mointoins direct occess to one of the lorgest FSC certifiedo pine plontotion forests in the world.

Plantation Plywood Panels

Lumin plywood from Weyerhaeuser is manufactured from plantation-grown eucalyptus and pine.

The all-eucalyptus panel is available in seven grades, including four proprietary grades.

The combi-panel is available in three standard grades, pairing the strength ofeucalyptus-core veneers with the traditional visual appeal of a pine-face layer. Both are produced in a mill with FSC chain-of-custody and controlled wood certification.

(877) 668-0155

Easy Underlayment

Elastilon underlayment allows stick-and-peel installation of 5/ I 6" to I " hardwood flooring.

The self-adhesive membrane can be used on concrete, both below and above grade, eliminating the need for subfloor construction or glue and nails.

T ELASTILONUSA.COM

(877\ 526-9663

Cotati, CA . t-8oo-TT3!!2J o www.compasslumber.com

Water-Saving Head

Alson's Fluidics water-amplifying showerhead has earned the EPA's WaterSense label.

The fixture features a series of chambers that control the shape, velocity, and thermal dynamics of water for an invigorating shower experience.

Finishes include chrome, satin nickel, and oil-rubbed bronze.

T ALSONS.CoM

(800) 421-0001

Crisp, EasyGorners

FibaTape composite corncr tape is made of PVC and coated with rr tight-fibclcd matlix.

Offbred in 2-3l8"x25' and -50' rolls. it reportedly fblds quickly and adjusts to any angle for straight. prof-essional corners and anglcs when installing drywall.

I FIBATAPE.COM

(800) 762-6694

Composite Gate Kit

A ner",compositc -late kit fiom TimberTech complemcnts the company's decking, railing, ancl f'encing products.

A lock, latch, and mounting hardwarc are included.

The kits rcportedly are code-compliant for use with swimming pools and secondstory decks, and available in a selection of complementary colors.

I TIMBERTECH.COM

(800) 307 7780

Old World Crafuinanship In Today's Designs

Tru.Dry Timbers

Geo. M. Huff Lumber Co. has teamed up with Forest Grove Lumber to become the exclusive Southern California stocking distributor of tu-Dry Timbers.

Stick to GreenFloors

DriTac 7500 Eco-Urethane flooring adhesive contalns zero VOCs and zero solvents.

Easy to sprcad. it provides a pe rmanent bond for a nrttge of flooring and undcrlayments.

I DRITAC.COM

(800) 394-9310

All FGL Tru-Dry timbers are dried in "HeatWave USA's RFV" kilns, which use clean, renewable energy and have zero emissions.

Tru-Dry timbers are dried completely and evenly throughout so you won't experience the sticky problems often encountered with beams that are not dried to the core.

Combine our selection of Douglas fir timbers along with our skilled milling staff and you've got one ofthe best resources in Southern California.