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DAVID CUTLER editor-publisher dcutler@ioc.net

It's Showtime!

Generally considered the hottest new trade show on the circuit, the North American Wholesale Lumber Association's Traders Market is a good example of the evolving world of industry trade shows.

Once upon a time, dealer and wholesaler associations took a full week for their annual convention, now it's often only four days and the new gatherings, like the Traders Market, are three-day affairs.

Recognizing this, our October issue will feature a full-color supplement devoted to the Traders Market, reviewing the front line buyer and seller format that promises to draw 1,500 people to this third annual at the Dallas-Fort Worth Airport, November 5-7. Unlike the dealer shows, wholesalers will be there as attendees. rather than exhibitors.

Historically, association meetings were annual, relaxed conclaves that were as much social as business. Then the trade show became part ofthe convention. Later, business seminars and minishows were held at various times of the year. Companies held their own product shows. Then the co-ops began their buying shows, impinging upon traditional association turf. Today, many state dealer associations hold successful shows, though some are smaller than 10 or 20 years ago.

Time is the factor that comes into play in assessing the show situation. Vendors usually greet new shows with, "Oh no, not another show. We're already maxed out in both time and budget." As the pace of American business moves more rapidly, the before, during and after and the costs involved weigh heavily on any potential participant.

More and more, both vendor and showgoer want a situation where business can be done. Fewer of the meet-and-greet, howdy-and-the handshake shows are retaining their full complement of visitors. No one seems to have the time: the demands of business to be profitable are unrelenting.

The marketplace will be the final arbiter of how many and what kind of trade shows will survive and prosper. But as NAWLA's Traders Market has shown, a shortened format at the right price, conducive to business, will still draw a big crowd.

CAPITAL LUMBER COMPANY

. SEVEN REGIONAL

DISTRIBUTION CENTERS

SERVING THE WESTERN UNITED STATES. TWO MANUFACTURING

PLANTS SERVING THE CONTINENTAL UNITED STATES AND EXPORT MARKETS. DIVERSE

PRODUCT LINE FEATURING

REDWOOD PLUS

EXTENSIVE INVENTORIES OF SPECIALTY FOREST PRODUCTS. INCLUDING

PRE-PRIMED MDF

MOULDING AND BOARDS

MANUFACTURED AT CUSTOM FOREST PRODUCTS, A CAPITAL LUMBER COMPANY,

DISTRIBUTION CENTERS Location Phone #

Phoenix 602.269.6225

Albuquerque 505.877.7222

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Treated Plywood

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The total tlcrnarrrl li)f tfeatecl plv wood reached an all-time high in 1996 of 680 million sq. ft. (3/8"), a l4.5qo increase from the previous year. Growth in the last three years has been at a rate of l'Vo per year.

Retail sales of treated plywood now account for over TOVo of its total demand-boats, permanent wood foundations and fire retardant treated plywood make up the remaining 307o.

Material Handling

More plywood is also being used by material handling professionals as they search for cost-effective alternatives to solid lumber pallets and higher-cost plastic bins and containers.

Benefits for pallet users include increased durability and improved rack resistance compared with traditional wood and plastic designs, and better surface friction and repairability compared with plastic pallets. For bin and container users, plywood also offers greater strength and product protection.

APA forecasts the rate

of growth in some industrial markets, including panel deck pallets and containers, to rise significantly over the next few years.

APA forecasts the rate of growth in some industrial markets, including panel-deck pallets and containers, to rise significantly over the next few years. "Currently less than lOTo of pallets are manufactured with plywood," said Tom Kositzky, APA industrial market coordinator. "Each percentage point increase translates into roughly 100 million sq. ft. of new demand."

Many plywood producers, and some distributors servicing the industrial market sector, are offering specialty-grade industrial-use panels specially tailored to end-use conditions.

Upgrades in panel lay-ups include tighter cores for greater screw and nail holding, and increased use of facesanded panels for manufacturing overlays.

Using APA's Industrial Panel Selection Guide, some wholesalers and retailers are servicing larger industrial accounts by allowing customers to specify plywood that better matches their individual requirements. Traditionally, those accounts have relied on more common standard grades.

Furniture Frames

Specialty grade panels are also making their way into the upholstered furniture frame market where plywood provides superior strength and fastener holding ability than more conventional hardwood lumber frames. Whether fumiture manufacturers use CNC routers or band saws, plywood can be cut much more efficiently than lumber, providing higher material yields and more uniform parts.

Upholstered furniture manufacturers consume about 2.5 billion bd. ft. of softwood and hardwood lumber and about 400 million sq. ft. (3/8") of structural panels. "With greater performance and much higher raw material yield, we see specialty plywood continuing to take share from lumber in this growing market," KositzkY said.

MDo/HDO

In addition to specialty grade plywood, some big box retailers are stocking more Medium DensitY Overlay (MDO) plywood to service smaller sign shops and do-it-yourselfers.

Markets that have and continue to provide some dealers with higher margin opportunities include High Density Overlay (HDO) plywood widely used in commercial construction for concrete formwork, some overlaid plywood sidings and specialty panels for smaller cabinet manufacturers.

With industrial market growth and steady residential demand, North American softwood plywood is securing a long-term, profitable future for dealers, wholesalers and distributors.

6

THE figures may look unimpres- I sive, with tamer increases than previous years and even some decreases in production among North America's top OSB manufacturers. But the stability of 1991 is a major contributing factor to the current rejuvenation of the OSB market.

1998 is the year that OSB demand finally started catching back up with production, and prices began to rise accordingly. A commodity primarily used in new home construction, OSB is again in high demand, bolstered by low interest rates, a robust economy and a better-than-expected housing market. For the first time in vears. OSB prices have caughr up wit-h plywood.

During the early- and mid-1990s, manufacturers kept building new plants, but demand couldn't keep up, sending prices plummeting. But there was a silver lining: low prices for OSB over the last two years did entice traditional plywood users to give OSB a try, and many seem to be making the switch permanent.

During the drought, many producers stopped expanding or even cut back production, and fewer new plants are coming on line.

Yet decreased production in a weak market doesn't always make sense for individual plants. "You

Norbord Industries

Toronto, Ontario

4 olants: La Sane, Val-d'Or, Quebec; Bemidji, Mn.; Guntown, Ms.

Potlatch Corp.

Spokane, Wa.

3 dqnte; Bemqi, Cook, Grand Rapids, Mn.

MacMillan BloedelLtd.

Vancouver, British Columbia

3 plants: Hudson Bay, Saskatchewan (Saskfor MacMillan); Miramichi, New Brunswick (Eagle Forest Products); Wawa, Ontario (North Superior Forest Products).

Huber Engineered hroods don't try to curtail production, you try to make more," explained Norman Hanson, general manager for MacMillan Bloedel's North Superior facility. "As your production goes up, your costs go down." an extensive remodeling in 1993 of the building that houses the business. A fullline paint and hardware section and nursery were added to the existing 12,000 sq. ft. lumber yard, creating 25,000 sq. ft. of business space, and the business became an Ace Hardware affiliate.

Charhft, N.C.

3 planE: C6lm€rce, Ga.; Easton, {e.; Cvsmt Hill, va.; SprF€ Cfi, Tn.

The top slots in this year's production ranking remained unchanged from the year previous. The two biggest production gainers were Tolko Industries, which increased output by 33Vo, and Ainsworth Lumber Co., which upped production by 32Vo.

The accompanying figures are combined estimates of each firm's plants, provided by the comPanies themselves. Every effort was made to ensure accuracy and thoroughness.

TnRACING its history back to 1852, I Union Lumber Co., Marysville, Ca., claims to be the oldest operating lumber yard west of the Mississippi River. But longevity has not brought lethargy; the store was recently voted the top Ace lumber store in California.

"Remodeling has helped us concentrate more on the retail end of the business," Harry asserts. "By diversifying, we're not devoting all of our energies to one area."

With a staff of l0 employees, the store serviceq municipalities and commercial businesses as well as architectural customers and d-i-yers. "That pretty much comes with the territory," remarks store manager Harry Cheim. "We try to accommodate our customers and provide them with quality service. The service is what will keep people coming back, after all. Our roots are deep in this community."

A downturn in lumber sales led to

"Business is more competitive than ever." he continues. "There's a Meek's, an Orchard Supply and an SBS Building Center in Chico and Sacramento. Even though these cities are both about 40 miles away from here, people will drive there just the same if they feel they can save money." He further notes that lumber can be "trucked in from everywhere," another big edge for larger chains.

According to Kaye Cheim, coowner and company president, the business was "strictly a lumber yard at the time of its founding." Kaye's husband, Heiman, the other owner, is the

*'fl third generation of Cheims to run the business. Son Harry is the fourth generation.

"The building that housed the business was built as a drive-through," reveals Harry. "People would pull up in horse-drawn carts and load their lumber onto the wagons and leave out the back."

Harry's great-grandfather, Heiman Cheim, a Prussian emigrant, purchased the company in 1873. When fire destroyed the business in 1905, the company moved across the street. A subsequent fire in 1949 totaled that location, necessitating a move to its current location, a converted feed store. Heiman and Kaye bought the business from the Cheim estate in 1970.

In an interesting footnote, a Cheim ancestor, William Green Murphy, was the brother of Mary Murphy Covillaud, for whom the town is named. The family's historical ties to the area are not lost on Harry, the proud father of a two-year-old daughter. "She'll be the fifth generation of family owners, if she's interested," he chuckles.