OSB & The Pacific Northwest

By Randy Robins Regional Market Manager-Western OSB Weyerhaeuser Co. Federal Way, Wa.

In 1994, Weyerhaeuser made available to selected areas, a new, "no need to sand" OSB tongue-and-grooved floor panel, Edge Gold. The panel offers similar performance characteristics yet less sanding and lcss swelling than other competing OSB panels, so there are fewer callbacks.

A PLYWOOD alternative called Aoss. often conlused with waf'erboard and particleboard, has been around since 1982. Builders liked it due to its favorable price, and each panel was consistent with no delamination or core voids, just solid wood with no air. The sheets were flat and did not warp or buckle when left laying around the jobsite.

But when it rained on an OSB floor, something happened that killcd the growth of OSB tbr floor panels in the Pacific Northwest. Some people called it "edge swell," puffing up of ends and edges to form a picture frame, and many felt it was coming apart. If the swelling was not sanded down before carpet and pad were laid, you could see and feel a lump beneath the floor covering. This extra work and callbacks caused many builders t<l switch back to other wood floor panels.

But plywood panels have Problems, too. Each sheet looks different. There is delamination, edge and core voids, buckling, patches falling out, and putty all over the face and edges. Even so, builders were content with these plywood problems. They had lived with them before, and would continue to do so if necessary.

To achieve such superior pcrlbrrnance, Weyerhaeuser developed a new resin blend using extcrior type liquid and powder phenolics and MDI technology (Super Glue) to enhance durability. Second, all panels have two coats of new gold color edge sealer applied to all cdges fbr easy market identification. In addition, cach unit has new and attractive dark grecn, white and gold packaging. Thcsc side covers also protect the tongues and grooves of the panels.

Field tests plus actual usagc on thousands of residential hornes havc proven the engineered panel perlbnns cxtremely well in thc wct Scattlc, Portland, Northern California and British Columbia areas.

It is also guaranteed not to delaminate for l0 years, and the flooring panels can be covered with carpet and all types of hardwood strip flooring.

TreeSource Files Bankruptcy

TrecSourcc Industrics, InC., Portland, Or., has lilcd for v<lluntarv reorganization uncler Chapter I I bankruprcy.

Ironically, thc company simultancously announced second quartcr profit of $6.3 million, conrpared to a $1.2 million nct loss lbr the year-earlier pcrird. Salcs increascd over 4ocl , in spitc ol'operaring t'cwer lacilities, duc t<l highcr salcs prices and <lpcrating sonrc lircilitics lnorc aggrcssivcly.

Nevcrthclcss, weak I urnbcr nrarkets prror to thc quartcr p(lhibited TrccSourcc liom nraking eithcr tlcbt scrvicc paynlcnts to sccurcd lcndcrs sincc Fchruary or dividcnd payntcnts t<l prclL'rrcd sharcholdcrs lilr thrcc quartcrs.

Poor nrlrkct conditions, acceleration in industry nr<ldcrniz_ation. and a halance shccl cncumhcred with a hich lcvcl ol'dcbr and prcl'crrccl stock diJidcnd <lbligations all causcd thc conrpany to lllc lilr hankruptcy, according to ltccS<lurcc prcsidcnt Jcss R. Drakc.

"Thc dccisi<tn to lllc l<lr re<lrganization was dil'llcult, bur providcs the mcans lo rcslructurc thc cortrpany's balancc shccl und cnablc thc tacilitics with prrlvcn carnings to c<lntinuc opcrations and providc cnrploynrcnt in thcir contruunirics." Drakc said.

Belurc l'iling, TrccSourcc lnd irs sccurcd lcndcrs nc-uotiatcd a rc<lrganiziltron plan, which is still subjcct to court itpproval. 'l'hc cornpany, which has lon-s bccn rvithout a linc ot'crcdit, als<l hls obtaincd cornnritnrents tirr intcrint rvorking capital l'inancing ol' up to $14 ntillion.

Sincc tlrc c()nlpany's high dcbt has rcsultcd in ncgarivc ncl worth. cxisting prclcrrcd and conlrnon sharcholdcrs' intcrcsts likcly witl bc cancclled as part of thc rcstructuring.

o Hardwoods o Hardwood veneer plywoods o Hardwood mouldings, common pine, T&T quotes o Softwood plywoods o Melamine panels o Standard & architectural mouldings o Butcher blocks o Bread boards o Cabinet hinge o Corbels o Drawer slides o Edge band tape o Galley rail o Wood putty o Glue & contact cement o Hardwood buttons, plugs & dowel pins o Veneers o And new rope moulding Products

Do You Need A Business Valuation?

Business valuations are an imPor- "Built-in capital gains" in the busitant and sometimes legally required ness are similar to that in real estate. tool, and not just for those putting Many dealers bought their property their companies up for sale. Bud and equipment years ago and now the Howe, president, Howe & Ely, St. properties are worth considerably Louis, Mo., tells why. more, hence the term "built-in capital

Q: Why does a lumber dealer need gains," which in turn establishes a tax a buiiness valuation? liability on the built-in capital gain' In

A: Business valuations, as a result most cases it is advantageous for the of 1993 federal legislation, are manda- dealer to show these "built-in capital tory in cases of deith of a major share- gains" as an asset with a correspondhoider in a privately held company, ing tax liability on the balance sheet' also in most cases for stock giving.

Q: How is value determined?

(eogl357-7730

Also. a dealer should know the true

A: We hear dealers say they have value of his business fbr other rea- had five to six great years in the '90s' sons-largest asset in estate, or for and ask how that affects the value of berrer ope;ating guidance. their business if they wish to sell or

Q: When Jhould a lumber dealer merge. The answer is that it certainly have a business valuation done? helps to have a profitable record, how-

A: A dealer is wise to have a valua- ever, another consideration that dealtion now-for a benchmark, also for ers need to keep in mind is that the the reasons already mentioned. How value of their business should not be often should it be done? The valuation based on the business' past perforneeds to be updated if there is a signif- mance, but on "future benefits to the icant change of ownership or death of business owner." Hence, value is a major sf,areholder. If there are no based, not so much on what the busisigniiicant changes in the business, an ness did for us yesterday, but more on ,plut" every l0 years is advised. what the business will produce tomor- e: What is u ;builtin capital gain" row and next year, and the next five to or "built-in capital gain tax liability," l0 years. and why is it significant to a dealer?

Q: Who is qualified to-do a mean-

A: Last y"url th. courts resolved a ingful business valuation for a lumber tax and valuation issue that was dealer? bouncing around for several years by

A: Because the need for business saying tLat when valuing a business, valuations has increased in recent "Uuitt:in capital gains" o-n assets in a years, there has been an influx of business should be considered even overnight experts in valuing small and thoueh no sale of the business is immi- medium sized businesses. These nent, thus helping dealers in their estate planning.

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COUNT ON US FOR ALL THE MDF MOULDING YOU COULD EVER WANT IN A RAPIDLY EXPANDING LINE OF PROFILES.

You asked. We tistened. And now, we have more Sierrapine MDF moutdings to offer you than ever before. Not only have we added to our tine of profiles, we've increased our capacity to produce. That means just-in-time shipments witt be coming your waya solid selection of moutdings and architectural profiles in widths up to 71l2 inches.

In fact, let us send you our new SierraPine MDF profile book so you can see the futt tine. Be sure to notice that we now offer custom UPC tabets and casings mitered to specification.

To learn more, catl us.

Jiannine.

0N TRACK: (1) Steve Hardin, Bill McConnell at Georgia-Pacific's customer appreciation Day at the Races in Del Mar, Ca. (2) Patti & Kevin

Lindsay.

G-P's Day at the Baces (continued from previous page)'. (1) Mary Greeley, Dick Goering, John Prcoi. 121 Rmy & Gene Lewandoski. (3) inda & Ed Winkler. (4) Valerie & Rick Deen. (5) Kristin & Joe Lawrence. (6) Susan & Tracy Page. (7) Ernie & Debra DeMontreux. (8) Kim & Tom

Reed. (9) Paula & Mike Mower. (10) Kelly & Les Haugen. (11) Cheryl & Bruce Whetsel. (12) Birgitta & Ben Olin. (13) Gale McBride, Pete Ganahl. (14) Frank Youngman, Buck Byers, John Shirley. (15) Jonathon & Rosatie Llnes, with new addition to the family. (16) Mike & Mrs.

Brubeck. (17) Theresa & Mike Tuchmann, (18) Tamara & John Brean. (19) Rosemarv & Jesse Carrasco. (20) Beverly Klugston, B6b Weiss. (21) Kim & Ron Adkisson. (22) Kalhy Sowle, Tom Short, Tavis Lager, Dave Johnson. (23) Eileen Spence, Fred Bennett. OcroBER 'l 999 THB MnncruNr

Chains Formulating Environmental Policies

Within days of Home Depot announcing it would phase out wood products derived from "environmentally sensitive" regions, competitors

Lowe's and HomeBase revealed plans to create similar policies.

Lowe's said that by year's end it would introduce a certification policy similar to Depot's intention to work with its vendors over the next four years to discontinue canying products using wood from certain regions, unless the wood is certified by environmental organizations (see Sept., p. 34).

Just over a week later, 87-unit HomeBase, Irvine, Ca., announced that the environmental components ol' its lumber sourcing program were under review and that it hoped to launch a fbrmal lumber sourcing policy next year that might incorporate certification.

HomeBase said it "is working closely with its lumber suppliers to develop a workable program that enables it to meet the diverse needs of customers, while fbstering ecologically sound forestry practices."

Excess Inventory On Line

Miami, Fl.-based bliquid.com has launched reportedly the first selt'-listing industrial auction Internet site enabling businesses to sell wood products and other excess supplies and equipment.

Listings are free, with the service charging sellers a 57o commission on items that sell.

NEW WOOD polymer decking plant in Nevada is on line two months ahead oi schedule.

Trex Decking Facility Up & Running

'li-ex Co.'s ncvu,Fernlct,. Nv.. plant has be-uun production, tw'o nronths aheacl ol schedule_

Thc conrpanv. whiclt rnanuluc(ures wood polt,rner dcckrne pnrclucts, is bascd in Wincheste r. Va.

"Hrvrng a Trex plant on tlte Wcst Coast pr.ovides nrajor benel'its in both scrvicc und reduccd frerght lnd handline costs," suirl Doug Hlrrt. r,icc presiclcnt of salcs and rnarke ting. Orc Plc Building Producrs. Wilsonville, Or.. l'frcx distfibutor. "Nor.v we can service the entire \4rcst Coast tn undcr 48 hours. whereas rail cars ll'onr the East liave been takins foul.to e ight rveeks to reach us."

Plant ntanagcr David Jordan was rewarded lirr.his e fforts by bcing pr-onrotcd to vicc president ol'ntanulactur.rng and cnglnccn n g.