Small is beautiful

credit crunch (and, by the way, a highly centralized banking system is also problematic), smaller dealers and distributors have little opportunity to invest in new innovations or take advantage of growth opportunities when they arise. I've often argued that creating strong links with one's surrounding community is the key success factor for independents. Now, there's one more reason why that's the case and it could prove to be a game changer: crowdfunding.

Crowdfunding is one of a growing number of alternative financial models enabled by the Internet and filling the gaps not addressed by the existing financial system. The idea behind crowdfunding is that many people can contribute small amounts of money to enable big things to happen.

Eto* MANY woRKINc in the sustainability movement, one f-' book-Small Is Beautiful: Economics as If People Mattered-provided the spark that inspired their careers.

Turns out, economics isn't a dismal science after all, and it's too important to be left to self-important politicians or obfuscating policy wonks. Instead, this book argues that economics can provide a potent framework for building healthy and sustainable communities. The book is still relevant 40 years after its first publication, and its author, E.F. Schumacher, is revered among academics and professionals working in a range of fields from development economics to green building. Why? It shows that decentralized, community-centric economic development policy improves sustainability and builds local resilience.

Sustainability and local resilience are two issues of supreme importance to the home and shelter supply chain: the former, because that's what's driving growth, competitiveness, and innovation; the latter, because the long-term health of our industry is directly related to the health of our local and regional economies.

But while our industry creeps toward sustainability, it's heavily reliant on centralized supply chains and international-scale corporations. Scale and centralization have benefited consumers with lower prices, due mostly to offshore manufacturing. But too much of a good thing is, well, not a good thing. Many argue that high energy costs associated with a globalized supply chain make it inherently unsustainable. But the point I want to address is that it also leaves local economies vulnerable, evident today in high unemployment, diminished construction activity, and increasing closures of independent dealers.

For independents to remain competitive they need, among other things, access to capital. Given the current

To date, crowdfunding has been limited to grants, product pre-purchases, and micro-loans. But that's about to change. The JOBS Act, which goes into effect next year, will allow crowdfunding sites to begin selling equity shares in companies, enabling capital to flow directly to smaller firms, bypassing Wall Street altogether. It may be too late for some firms, but this could prove to be a valuable path to survival, growth, and competitiveness for small independent companies whose fate is still undecided-especially for those who can draw on the good will of their communities.

Independents interested in this path should start getting ready now. Simply listing your company's offer on a website isn't going to be nearly enough. Start building your business case and begin strengthening ties to your future investors; your community. Develop some innovative ideas that will make a difference-a green building training facility, perhaps? Ultimately, whether you want to raise equity investment or contribute to a creative idea, crowdfunding could prove that not only is small beautiful, but it's a sound financial strategy, too.

JaY TomPt Managing Partner William Verde & Associates

Pacific Alaska Lumber, Lakewood, Wa., has opened a new office in Anchorage, Ak. (Rodney Larson, regional mgr.).

Empire Wholesale Lumber, Akron, Oh., closed its office in Portland, 0r., after being taken over by a bankruptcy court-appointed receiver.

Empire's 11 other branches-from the Midwest eastward-remain ooen.

Weyerhaeuser has begun producing radiant barrier sheathing at its OSB mill in Hudson Bay, Sask., to help meet demand for the product in Califomia, Arizona and Nevada.

Columbia Forest Products will use Greenwood Tree Farm Fund's FSC-certified, plantationgrown hybrid poplar timber in its MPX hardwood plywood.

Greenwood is installing a new Meinan lathe alongside the existing Upper Columbia Mill at its Boardman, Or., plantation to supply core veneer cross-bands to Columbia's plywood mill in Klamath Falls, 0r.

Henry Co., ft Segundo, Ca., has been acquired by an investor group led uv Graham Pdrtners.

Co-investors include private equitv firm Ocean Bridge'Partners, members of cunent management, and the company's former owners.

Epicor Software, Dubtin, ca., renewed its deal with True Value to continue for three years as the co-op's recommended P-O-S solution provider.

Redwood Empire, Ctoverdate, Ca., is now supplying redwood to Richardson Timberi, Dalas, Tx.

BW Creative Wood Indus. tries, Maple Ridge, B.C., has acquired the Vrsrn aluminum railing line and manufacturino eouioment from CampbellsdunUerd ttO,

The new subsidiarv will be operated as BW Vista Railings Ltd.

Sunset Moulding, Live oak, Ca., is running a new MDF line at its plant in ldabel, Ok.

Federated Go-operatives

Ltd. agreed to sell its foiest products division assets and ooerations in Canoe, B.C., to Gorman Bros. Lumber, Westbank, B.C,

New Owner Reopens Golden State Flooring

Investor Simon Shushan has acquired certain assets ofGolden State Flooring from its J.E. Higgins Lumber Co. and reopened offices in San Diego and San Jose, Ca.

He hopes to revive service to Nevada and Arizona and has also relaunched the website (www.goldenstateflooring.com). Former Golden State Flooring v.p. of sales Allen Smith is now president, and Jason Grant. also ex-Higgins, is v.p.

Higgins had operated 14 Golden State branches until closing the last ones in Jwe(see July,p.41).

SPI Settles After Wildfire

Though it denies responsibility, Sierra Pacific Industries, Redding, Ca., has agreed to pay nearly $50 million and donate 22.500 acres of land to settle a lawsuit over a 2007 wildfire that destroyed about 65,000 acres in Northern California.

Although SPI attorneys believed that federal prosecutors would not have been able to prove at a trial that the company was responsible for the fire, a judge's pre-trial ruling opened the possibility that the company might have been forced to pay damages anyway. California law allows courts to award damages up to three times the value of the trees or estimated value of the damage to public land.

"Current law is being rpisused in an effort to ignore the actiral value of property, highlighted here by the fact that the federal government initially demanded an amount eisht times the pre-fire value of the property," said Mark Pawlicki, SPI's director of corporate affairs.

The settlement includes a cash payment of $47 million from Sierra Pacific, a $7 million payment from private landowners and managers of the property where the fire started, and $l million firom the logging contractor that was working in the area.

Federal prosecutors blamed employee negligence for the blaze, claiming that the person designated to watch for fires left the work area and drove 30 minutes to get a soda. When he returned more than an hour later, there was a 100-ft. wall of smoke but no fire-fighting equipment was available at the site.

Beacon Buys Southern California Roofing Supply

Beacon Roofing Supply, Peabody, Ma., has acquired six-unit roofing distributor Structural Materials, Co., Santa Ana, Ca.

Paul Byrne, who founded Structural in 1948. is retiring.

Beacon c.e.o. Paul Isabella said, "We long have believed that Structural would be an excellent complement to our existing Southern California branches, which are operating under the Pacific Supply name, and will make Beacon the leading roofing supply distributor in the important Southem California market."

Structural generated more than $80 million in sales during 20 1 I from branches in Santa Ana. Vista. San Bernardino, Commerce, Hesperia and Sun Valley, Ca.

Travis Prickett is a new account mgr. at Universal Forest Products. Riverside, Ca.

Tom Scott has joined the TruWood sales team at Collins Cos., Portland. Or.

Natalie Allen, ex-OrePac, has joined TimberTech as territory technical rep in Southern California.

Les Haugen, ex-Las Plumas Lumber, is now in customer service at Boise Cascade. Riverside, Ca.

Dawn Van Briggle, ex-J.8. Higgins/ Golden State Flooring, has joined the sales force at Galleher Corp., Sacramento, Ca. Mike Lagarrigue, ex-Higgins/Golden State, is new to outside sales in San Mateo, Ca.

Jeff Johnson, ex-Paradise Building Specialties, is new to door & window sales at Ganahl Lumber. Anaheim, Ca.

Matt Pacheco, ex-ProBuild, has been named senior financial analyst for Westwood Shipping Lines, Puyallup, Wa.

Chris Sallee now focuses on green Douglas fir at Buckeye Pacific, Portland, Or.

Jim Duckworth, purchasing agent & salesman, Forest Products Sales, Murray, Ut., has retired after 38 years with the company.

Shannon Mott has been promoted to international account mgr. at LP Building Products, based in Los Angeles, Ca.

Casey Jackson has been promoted to v.p. of manufacturing for Contact Industries, Portland, Or., overseeing its manufacturing division, Clear Pine Moulding, Prineville, Or. He succeeds Bob Horton, who has retired after 37 years in the industry, the last l7 with Contact.

Al Gedroez, ex-Simpson Lumber, is now in sales at Zip-O-Log Mills, Eugene, Or.

Doug Heyford has joined the staff at Trinity River Lumber, Weaverville, Ca.

Mel Williams, lumber department mgr., Boise Cascade Building Materials Distribution, Phoenix, Az., has retired after 33 years with the company.

Quentin Hoffpauir is new to inside sales at Boise Cascade. Boise.Id.

Tim Spencer, ex-BASF, has been named general sales mgr. for Pabco Roofing Products, Tacoma, Wa.

Cami Beckerdite, ex-Home Depot, has been named regional operations mgr. for the San Francisco Bay Area at Orchard Supply Hardware, San Jose, Ca.

Amy Fraser, ex-Shelter Forest International, has joined the outside sales team at McKillican International. Portland. Or.

Mark Williams, ex-Compass Lumber Products, is new to sales at Redwood Empire, Morgan Hill, Ca.

Bryan O'Connor has joined F.H. Stoltze Land & Lumber, Columbia Falls, Mt., as project mgr., overseeing construction of a biomass cogeneration power plant. When the facility is completed in October 2Ol3, he will serve as power plant mgr.

Derek Kokich has joined Parr Lumber, Hillsboro, Or., as events coordinator.

Peter Ashenbrener, ex-Vander Hoek Windows & Doors, is now in sales at Reeb Millwork, Kent, Wa.

Ryan Adams has been named senior product cost controller at Timber Products Co., Medford, Or.

Derek Byington, ex-FoxworthGalbraith Lumber, has joined the outside sales team at Bloedorn Lumber Co., Rock Springs, Wy.

Tony Hagiber, ex-Shakertown 1992, has joined Endura Products, as territory sales mgr. for Seattle, Wa.

Aida Fisher, ex-Somerset Door & Window, has joined the sales force at Santa Cruz Millwork, Santa Cruz,Ca.

Ken Gloss, ex-Lumber Products, has been named sales & continuous improvement mgr. for Hardwood Industries, Sherwood, Or.

Dwayne Lord, ex-Pella Windows & Doors, is new to sales at the hardwood decking division of StoneWood Design, Beaverton, Or.

Krish Mani has been named chief information officer for Jeld-Wen, Klamath Falls, Or. Scott Vining is now senior v.p.-finance and chief accounting officer.

Jozanna Andersen, ex-Menards, is a new inside sales assistant at Pella Windows & Doors, Denver, Co.

Stuart Bettesworth, ex-Contractors Building Supply, is now in commercial & industrial sales at Gray Lumber Co., Tacoma, Wa.

Brian Sullivan, ex-J.E. Higgins/ Golden State Flooring. is now Portland, Or., territory mgr. for Kraus USA.

Andy Martinkus, Western Materials, Yakima, Wa., has been promoted to chief operating officer.

Jim Hackett, ex-Endura Products, is now general mgr. at Alliance Door Products, Wilsonville, Or. Marcie Wirth is new to inside sales in Kent, Wa.

Eric Wheatcraft is the new Seattle, Wa., field sales rep for Masco Cabinetry.

Russ Permann is the new v.p.-operations for the West & U.S. at Taiga Building Products, Calgary, Alb.

Kim LaRose now handles customer support for OSB sales at Tolko Industries, Vernon, B.C.

Chuck Ulik, chief operating officer, Roseburg Forest Products, Roseburg, Or., has teft the company after four years.

Joe Parenza is now Arizona territory technical/sales rep for Firestone Building Products.

Eric Bernstein, ex-Stanley Black & Decker, has been named v.p.-marketing & product development for Ames True Temper.

Gail Galea, ex-Walmart, has joined BuildDirect.com, Vancouver, B.C., as chief merchandising officer.

Missy Sippy and Lou Ziana have opened a South Central regional sales office for Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Worker Killed in MillAccident

A July 23 accident at Sierra Pacific Industries' mill in Standard, Ca., claimed the life of a 25-year-old worker. The mill was closed the next day, so company and OSHA officials could investigate.

According to the sheriff's report, Ron Billings II died of traumatic injuries after getting caught in machinery at the mill. He worked as a relief operator on several machines, filling in as needed.

"We're saddened by the news of this accident and our thoughts are with the family of the worker," said director of corporate affairs Mark Pawlicki.

Formerly known as the Standard mill, the plant was reopened last year after a two-year closure that included expensive upgrades.

3'boklor innovation."

Nathan Steere of JL Schwieters in Hugo, Minnesota, knows that a building supplier can't rely on yesterday's technology. So he's always on the lookout for what's new. Like pointSlX Durastrand Flooring, with its innovative tapered edge. Learn something new yourself by watching "Three Things Itve Learned: Tipt from Seasoned Plosr" one in a series of short high-value videos from pointSlX and Ainsworth Engineered.