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[ EDITORIAL]
BLD Connection Year 1
In just a few short weeks, we will wrap up the 2023/24 membership year and officially celebrate one year as BLD Connection, and what a year it has been.
From welcoming in new members via our merger with the Mid-America Lumbermens Association and through grassroots membership efforts, which have added more than 30 new members since September 2023, to a plethora of branding, marketing and event enhancements, the past year has been one for the record books. I hope that you are as proud as I am of what we’ve accomplished.
Some of the exciting work we celebrate includes this publication, BLD Connection Magazine. Our “reimagined” and improved magazine continues to add timely, meaningful content to ensure members are well-informed. Coupled with our new and improved Material Matters and Level Set newsletters, you have a ton of added value for your membership investment. We strive to be your go-to resource and conduit to the industry, and we hope our news and information positively affect your business.
As you will read in this issue, there is so much change taking place in our industry, with mergers, acquisitions, retirements, and new and vibrant leaders getting more involved. What hasn’t changed (and will not change) is our commitment to member education. This has been another healthy year for member training. The 2024/25 education calendar – packed with in-person and online opportunities for building material professionals of all skill levels – is poised to bring even more training and learning opportunities to our members across the BLD Connection region.
Speaking of change, this issue includes insights into the world of LBM technology, and our upcoming educational programming will highlight the use of technology in the building materials industry as we bring forward helpful tips and timely information about artificial intelligence and so much more. Looking back 14 years to my first days at the association, I am amazed at how technology has changed the game for the Association and our members. We’re excited to highlight the amazing technological advances of our industry and can’t wait to see where it takes BLD Connection and our industry in the years to come. It’s going to be a wild ride.
Finally, our events and outings – also highlighted in this issue – are stronger than ever. In 2023/24, we broke attendance and sponsorship records at many of our long-standing events and have great momentum as we head into the new membership year. If you haven’t made it to one of our events, outings, conferences or BizCons, make it a point to join us in 2024/25. You won’t be disappointed.
Your association is healthy, strong and committed. Your peers throughout the Midwest are engaged and ready for the excitement of the future and we are extremely thankful that you have joined us on this journey. We can’t wait to continue “BLDing” this industry with you.
Here’s to 2024/25, to our continued partnership with you and to continuing to “BLD” something special.
Cody Nuernberg, BLD Connection President
BLD CONNECTION BOARD
Chairman
Brian Wendt
Anita Supply Center, Anita Iowa
1st Vice Chairman
Scott Enter
wRight Lumber & Millwork, Buffalo, Minnesota
2nd Vice Chairman
Adam Hendrix
Chic Lumber Co., St. Peters, Missouri
Treasurer
Jennifer Leachman Leachman Lumber Company, Des Moines, Iowa
Past Chairman
Lynn Trask
Spahn & Rose Lumber/Moeller & Walter, Reinbeck Iowa
President/Secretary
Cody Nuernberg
Minneapolis, Minnesota
DIRECTORS
Iowa Director
Brent Schneider Spahn & Rose Lumber Co., Dubuque, Iowa
Minnesota Directors
Pat Hegseth
Scherer Bros Lumber Company, Brooklyn Park, Minnesota
Brian Klimek
Hilltop Lumber Co., Alexandria, Minnesota
MLA Directors
Hatch McCray
McCray Lumber & Millwork, Kansas City, Kansas
Nebraska Director
Mark Russell
Millard Lumber Inc., Waverly, Nebraska
North Dakota Director
Samantha Nasset
Crane Johnson Lumber, Fargo, North Dakota
South Dakota Director
Jason Meester
Watertown Cashway Lumber Company, Watertown, South Dakota
Wisconsin Director
Nate Ehlen
Sav-Rite Building Center, Neillsville, Wisconsin
ASSOCIATE DIRECTORS
Nate Hanson, Simpson Strong-Tie Chris Harding, Boise Cascade
NLBMDA REPRESENTATIVE
Brett Hanson, Tri-State Building Center, Sisseton, South Dakota
BLD CONNECTION INC. OFFICERS
President: Bill Brotherton, Wall Lake Lumber Company, Wall Lake, Iowa
Vice President: Mike Bertrand, Lloyd Lumber Company, Mankato, Minnesota
In June, BLD Connection held its annual Nebraska and Iowa golf outings. Thanks to the support of participants and sponsors, each event raised funds for its respective state association’s scholarship fund and politcial action committee.
Nebraska Golf Outing
On June 4, 2024, an impressive turnout of nearly 80 golfers enjoyed a top-ten weather day at the BLD Connection Nebraska golf outing at Eagle Hills Golf Course in Papillion, Nebraska. This event raised $1,180 for the Nebraska Scholarship Fund.
Tournament results:
• Hole #4 - Longest Drive in the Fairway – Aaron Knuth
• Hole #6 – Closest to the Pin 1st Shot –John Vecera
• Hole #10 – Longest Drive in the Fairway – Derrick Dierman
• Hole #15 – Closest to the Pin 1st Shot –David Adams
• First Place – Travis Spencer, David Jones, Josh Howell, Tyler Moore
• Second Place – Mark Russell, Brett Wasko, Josh Howell, Matt Franson
• Third Place – Jim Giesler, Rob Scheef, Alan McGill
Thank you to the record number of sponsors, without whom this event would not have been as successful.
Platinum Sponsors:
• Cameron Ashley Building Products
• Central Lumber Sales, Inc.
• Dealers Choice
• DMSi Software
• Federated Insurance – Special Lunch Sponsor
• Forest Products Supply Company
• Rion Equipment
Gold Sponsors:
• Bayer Built Woodworks, Inc
• BlueLinx Corporation
• Central States Manufacturing
• Gerkin Window & Doors
• Mid-Am Building Supply
• Simpson Strong-Tie Co. Inc
• Sprenger Midwest
• Timber Roots
Left: The Nebraska Golf Outing’s first place team.
Top: More than 80 golfers enjoyed beautiful weather and great company at the Nebraska Golf Outing.
• U-Mix Products Company
• WorkSafeWorkSmart.com, LLC
Silver Sponsors:
• BLD Connection 401k MEP
• Data Business Equipment, Inc.
• LP Building Solutions
• Run Payments
• U.S. Lumber
Iowa Golf Outing
On June 6, 2024, 55 golfers enjoyed a breezy but nice day at Beaver Creek Golf Course in Grimes, Iowa, for our BLD Connection Iowa golf outing. This event raised $1,195 for the ILUMPAC fund.
Tournament results:
• Hole #2 East – Closest to the pin –Jason Lorenzen
• Hole #6 East – Longest Drive in Fairway Men’s – Cole Arnburg
• Hole #2 West – Longest Drive in the Fairway Women’s – Kim Wendt
• Hole #6 West – Closest to the Pin –Nate Keenan
• First Place – Joel Visser, JD Gordon, Cole Arnburg, Josh Hauser
• Second Place – Jason Lorenzen, Alan Stillmunkes
• Third Place – Austin Leachman, Jack Leachman, Drew Selden, Tyler Schori
Thank you to the record number of sponsors again this year, without whom this BLD Golf Outing would not have been as successful.
Platinum Sponsors:
• Bayer Built Inc. – Special Beverage Cart Sponsor
• Data Business Equipment, Inc.
• Federated Insurance – Special Lunch Sponsor
• Rion Equipment
• Wausau Supply Company
Top: Tony Cook, BLD Connection, and Dan “Rowdy” Rau, Run Payments.
Bottom: Team Engquist Lumber & Federated Insurance.
Gold Sponsors:
• Central States Manufacturing
• LP Building Solutions
• Marvin
• WorkSafeWorkSmart.com, LLC
Silver Sponsors:
• BLD Connection 401k MEP
• Run Payments
• U.S. Lumber
BLD Connection would like to thank everyone who participated in all our 2023/24 outings. We look forward to seeing you at our future outings. View our upcoming opportunities at BLDConnection.org
AUGUST
August 5-7
Pinnacle Roundtable Minneapolis, Minnesota
August 22-23
BLD Connection/BLD Connection Inc. Board Meetings West Des Moines, Iowa
SEPTEMBER
September 22-27
Mill Tour
Oregon
OCTOBER
October 3
Sunflower Shootout Golf Outing Manhattan, Kansas
October 5
Wine & Whiskey Outing Des Moines, Iowa
October 19-22
BLD Mid-America Roundatable Biloxi, Missouri
October 28-30
Estimating 1-2-3 Inver Grove Heights, Minnesota
For complete details, registration and a complete list of BLD Connection events, visit www. bldconnection.org.
[ MEMBER SPOTLIGHT ]
DBE Introduces Its New Insight Solution
Shortly after purchasing Data Business Equipment in 1985, Wally Geiger saw an opportunity to expand the business beyond its original market, serving community financial institutions. He recognized that lumberyards existed in almost every town, much like banks. DBE developed and marketed a materials management system to help operators run their businesses.
During its nearly 40 years serving lumber and building materials dealers, DBE has differentiated itself by providing the same type of personal, communitybased service that keeps independent lumberyards thriving.
“We’re a company that supports long-term relationships,” said Josh Banta, DBE president. “Whether with clients, partners or employees, we love to support people who support their local communities. Nothing gets built in those small towns without the local folks who are taking care of them, and at our core, we’re doing the same.”
On May 1, 2024, DBE launched Insight, the new cloud-based version of its platform, built from the ground up to manage front-end and back-end operations. Insight modules include: General Ledger, Accounts Receivable, Accounts Payable, EDI, Inventory, Purchase Orders, Sales and Quotes.
“Insight is a total package,” Banta said. “Because it’s cloud-based, it’s very low-lift. There’s no infrastructure needed from the lumberyards, so they can focus on what they’re good at instead of trying to be IT guys.”
Based in Des Moines, Iowa, DBE serves customers in 14 states, spanning about 400 miles on each side of the I-35 corridor from Minneapolis to Austin, Texas. The company employs approximately 210 employees throughout its service area.
“Most of our clients have a technician in the field within half an hour of their location,” Banta said. “If something goes wrong on site, we can get people there quickly. We don’t need to do that often because most support can be provided remotely. But it’s comforting to our clients to know we have that capability, which is rare in this space.”
With the recent upgrade to a cloud-based platform, DBE is currently transitioning clients – some of whom the company has supported for more than 30 years. Because the company has served many clients for so long, it is intimately familiar with how they use the software and customizations DBE has
implemented over the years which leads to a smooth transition. Additionally, sales history and other data convert to the cloud alongside the client, instantly helping to modernize operations and years of records.
Insight was also developed for new clients to adopt with ease. Being user-friendly means independent yards that are looking to move on from QuickBooks or aren’t using any formal system today will also benefit from beginning a relationship with DBE.
For more information about Data Business Equipment, visit dbeinc.com/ insight
LBM Tech Watch
As LBM dealers, their suppliers and customers increasingly rely on technology to ensure positive and efficient transactions, software providers serving the LBM industry continue to refine their products to meet these expectations. In addition to Data Business Equipment’s recent rollout of Insight, discussed in the Member Spotlight on page 11, following are several recent updates from tech providers.
DMSi Launches Framework ERP for LBM Dealers
Building materials industry software provider DMSi recently brought Frameworks, an LBM point of sale/ ERP system that runs completely on the web, to North America. Frameworks is an end-to-end system handling retail POS, contractor sales, purchasing, inventory control, accounting and reporting. Users access the program through a web browser. No additional software is required. A mobile-friendly design means Frameworks can be used from a smartphone or tablet as easily as from a desktop or laptop computer. Open APIs and EDI capabilities allow dealers to integrate Frameworks with their preferred vendors and third-party applications.
Frameworks is specifically designed for the products, processes and needs of LBM businesses:
• The point-of-sale screen is easy to learn, making it ideal for seasonal or part-time staff.
• The project management dashboard lets service reps manage multi-job builds from one place, centralizing orders, tasks, pick tickets, deliveries, and invoices.
• The eCommerce/service portal lets customers review products, pricing and account records.
• Pricing controls simplify challenges around rebates, special buys, and contract pricing.
• Item records can use a single SKU to account for multiple suppliers and units of measurement for a product, simplifying inventory control.
• The dispatch module lets operations teams use drag-and-drop to build and schedule routes.
Originally developed by Sterland Computing, Frameworks is a dominant LBM software in Australia and New Zealand. After acquiring Sterland in 2019, DMSi spent three years adapting Frameworks for the U.S. market, including updating units of measurement, tax rules, and terminology.
“DMSi’s strategy is being the best software partner for building materials businesses. We are focused on industryspecific solutions for the entire building materials supply chain, from distribution through retail,” said Josh Weiss, president of DMSi. “Frameworks is a powerful, proven solution that helps LBM dealers thrive and scale their businesses. We are excited to bring this offering to North America.”
For more information, visit dmsi.com.
ECI Software Solutions Rolls Out Spruce eCommerce
ECI Software Solutions, a global provider of cloud-based business management software and services, last year launched Spruce eCommerce, an innovative e-commerce solution purpose-built for the unique needs of lumber and building materials and hardline businesses.
Designed as an all-in-one e-commerce solution and backed by ECI’s website design and digital
marketing team, Spruce eCommerce features built-in marketing tools such as abandoned carts, content pages, blog tool, drag-and-drop layouts, rewards and loyalty programs, badges, banners, customer segmentation, reports and Google Analytics.
“Spruce eCommerce is an exciting product because it allows users to build a sleek, professional storefront website and customer portal without needing any expertise in coding or web development,” said John Maiuri, division president LBMH at ECI.
“For consumers and tradespeople, this means unlocking the ability to shop online for delivery or in-store pickup, browse products, create accounts, build self-service quotes, pay invoices and more. For LBM and hardline businesses, this means help in avoiding overstocking since inventory counts, transactions, pricing, invoices and other information are directly connected between systems.”
Spruce eCommerce also includes a Spruce-proprietary Product Information Management (PIM) system and pre-built taxonomy for implementing the software faster, seamlessly adding products to the e-commerce storefront and housing content customers need to make informed buying decisions. Spruce eCommerce offers a broad range of LBM features such as branch-driven inventory counts and pricing, split shopping carts based on pickup or delivery, order pickup time slots and capacity, customer quote builder, branch finder, job switching, and live lumber and timber tally support.
“By modernizing old static offers with dynamic promotions, loyalty programs, item merchandising and in-house marketing and design services, LBM
and hardline businesses can generate additional growth channels by turning lost time managing data in multiple systems into a singular, streamlined online order process,” Maiuri said. For more information, visit ecisolutions.com.
Epicor Study Identifies Correlation Between AI Adoption and Faster Growth
According to the 2024 Agility Index research study from Epicor and Nucleus
Research, nearly half of surveyed companies across the make, move and sell industries – manufacturers, distributors and retailers – cited concern over escalating costs as the foremost challenge confronting supply chains, with more than half using artificial intelligence, automation or machine learning for at least one supply chain management application to address. Notably, a higher percentage of businesses (63 percent) identifying as high-growth – defined by revenue
growth of 20 percent or more over the past three years – have already integrated generative AI into their respective supply chain operations to manage cost and operational challenges.
Survey respondents indicated they are integrating generative AI into digital supply chain operations across various functions such as product descriptions, customer service chatbots, natural language querying, reporting, and in-application assistance. Specifically, the adoption of generative AI in customer service chatbots, noted by 72 percent of organizations, is highlighted as the most prevalent use case. This widespread implementation is attributed to the technology’s ability to streamline customer interactions across various sectors.
Similarly, 67 percent of organizations currently employ generative AI for crafting product descriptions, leveraging the technology’s capacity to analyze customer sentiment and forecast market demand. This enables a more informed approach to product design and feature development.
Businesses are also implementing machine learning most frequently in
inventory optimization (45 percent) and demand forecasting (40 percent), underlining the critical role of these technologies in managing inventory levels and accurately predicting future demand.
According to survey respondents, the greatest hope for the impact of automation technologies lies in increased efficiency and productivity (32 percent), cost savings (26 percent), and improved supply chain automation (23 percent). This reflects a strong belief in the potential of these technologies to drive significant improvements in supply chain management.
Recognizing the power and need to harness the power of artificial and business intelligence, Epicor recently unveiled an integrated portfolio of AI and BI capabilities throughout its ERP software for manufacturers, distributors and retailers. Example capabilities and workflows include:
• AI-driven predictive analytics to help generate, analyze and act on multiple inventory, demand, and sales forecasts.
• AI-generated sales orders created from natural language email inquiries, speeding fulfillment and reducing customer service effort while increasing conversion and customer satisfaction.
• Personalized, AI-generated product suggestions based on past order history to help optimize inventory levels, reduce costs and drive greater revenue.
• AI-powered predictive maintenance suggestions and notifications for fleet vehicles, reducing unscheduled vehicle downtime, delivery delays, and maintenance costs.
For more information, visit epicor.com.
LBM Retail Innovation Trends
by Chris Fisher
The lumber and building materials retail sector is undergoing significant transformation, driven by technological advancements and evolving customer expectations. For small and medium-sized businesses (SMBs) within this traditional industry, the rapid shift towards digitalization presents both a challenge and a critical opportunity for substantial growth and enhanced competitiveness.
Adapting to a New Retail Landscape
In the past, the success of LBM retail rested largely on in-person interactions at service counters, home centers, and direct phone orders. However, today’s retail environment demands a blend of digital and physical shopping experiences. Customers’ increasing preference for online shopping means that LBM dealers must quickly embrace digital tools, and those who delay risk falling behind as customer behaviors increasingly lean towards convenience offered by digital solutions. The transition to online platforms is essential, not just to remain competitive but also to meet the modern buyer’s expectations and expand market reach.
Embracing Technology for a Competitive Edge
The first step in this transformation is recognizing the need for change. LBM dealers must integrate digital engagement – from business software systems to e-commerce platforms – to cater to both traditional trade accounts and new online consumers. This involves navigating multiple solutions to create a cohesive system that enhances operational efficiency and customer interaction. This strategic modernization is not merely
about keeping up with competitors but about outpacing them by offering superior service and convenience.
Leveraging Digital Tools to Enhance Service and Efficiency
Modern digital tools enable LBM dealers to streamline operations and, more importantly, improve customer service. Through data analytics, dealers can gain insights into customer behaviors and preferences, allowing them to tailor marketing strategies and shopping experiences. This personalization of services not only increases customer satisfaction but also fosters loyalty, driving repeat business. The use of digital platforms also facilitates the efficient management of trade accounts and simplifies the process of acquiring new customers, further enhancing the overall customer experience.
Capitalizing on BOPIS
A notable innovation in retail that LBM dealers can leverage is the Buy Online, Pick Up In Store (BOPIS) model. This approach blends the convenience of online browsing with the immediacy of in-store pickup. According to “The 2023 Global Digital Shopping Index,” U.S. consumers adopting BOPIS increased significantly, from 23% in 2021 to 32% in 2022. BOPIS’s success enhances customer experience by offering them the flexibility to shop online and pick up their items at their convenience, and drives additional in-store purchases, further benefiting dealers by increasing foot traffic and potential sales.
A Continuous Journey Toward Future-Proofing
Integrating digital technologies in LBM
retail isn’t a new trend but an ongoing evolution. For more than four decades, LBM businesses have incorporated point-of-sale and order management systems. Today, the focus has shifted to more advanced solutions that include comprehensive digital platforms and e-commerce capabilities. This continuous journey of digitalization not only enhances business value and ensures longevity but also offers SMBs the opportunity to shape the future of the LBM retail sector, making it more efficient, customer-centric, and competitive.
For LBM dealers, the current landscape is about adopting new technologies and transforming them into tools that enhance business efficiency, customer satisfaction, and market competitiveness. By effectively utilizing digital solutions, LBM businesses are prepared to meet today’s challenges and capitalize on future opportunities. The journey towards digital maturity is continuous, and for those willing to adapt, the future is promising.
Chris Fisher is vice president, LBM Division of ECI Software Solutions, a global provider of cloud-based business management software and service. He’s responsible for overseeing the software operations for building materials industries across multiple geographies, leveraging his proven track record in developing and managing B2B SaaS solutions.
[ MEMBER SPOTLIGHT ]
Precision Equipment Trailers: Built on Quality
Precision Equipment Mfg. in Fargo, North Dakota, has earned a reputation over the past two decades for manufacturing high-quality truss trailers that are built to last.
The company evolved from its roots in 1999 when owner Bob Nelson purchased a custom fire truck manufacturer.
Changes in the fire truck market coincided with challenges in another of Nelson’s businesses, a rafter manufacturing company. Transportation of rafters and wall panels was problematic, as products were often damaged on their way to job sites. Precision Equipment began developing custom-built roller trailers with air suspension and stateof-the-art braking systems to protect shipments in transit and at delivery.
The new trailers were a hit, and Precision Equipment Manufacturing has served the lumber and building materials industries ever since. The company employs more than 50 people, who fabricate, assemble and paint its three trailer lines.
“We use high-quality materials and have highly skilled, experienced workers, so our trailers are built very well,” said Brad Heitmann, operations manager. “Our welding, powder-coating and blasting processes ensure our trailers are on the road for a very long time.”
The company serves a varied market ranging from small, independent lumberyards to some of the largest truss manufacturers in the nation. Customers span all 50 states and Canada.
Precision Equipment’s trailer lines include:
• Gooseneck: Available in 32’ and 36’ models, the Gooseneck is designed to be an efficient trailer to deliver loads that don’t require the use of the largest trucks.
• Standard: Available in 40’, 48’ and 53’ models, the Standard trailer features air ride suspension, sliding axle and in-cab hydraulic operation systems.
• Expandable: With 38’-53’, 42’-60’, 50’-70’ and 53’-80’ model availability, the Extendable is a stretch truss trailer, designed to haul large loads, extending for delivery and collapsing for the return trip.
Demand for the trailers has excelled in recent years. Keeping up with that demand amid job market challenges requires innovation. To meet demand and continue growing, the company has focused on process improvements. Precision Equipment employs an in-house engineering team and is exploring the use of robotic welders and painting automation to expand production without sacrificing the quality customers expect.
“One thing that is remarkable about our growth is that our production and sales have increased exponentially,” Heitmann said, “But the claims with our two-year warranty have not increased. This is a testament to our excellence in quality.”
A significant factor in Precision Equipment’s quality is the longevity of its employees. Many of the company’s staff have worked there for five to 20 years, and one recently retired after 34 years with Bob Nelson’s companies.
“We have customers referring us to other customers and employees who stay with us for a long time,” Heitmann said. “I think that’s a testament to the type of company we have.”
For more information, visit precisionequipmfg.com. or stop by their booth at the BCMC Framer Summit in Milwaukee on Oct. 7-11, 2024.
[ HR CONNECTION ]
By Rikka Brandon
Recognizing Employee Red Flags
Managers often keep underperforming employees for too long because they don’t want to risk going through a lengthy hiring process only to hire a replacement who may also underperform. They don’t feel confident they can find and hire someone better. However, low performers can bring the whole team down, and keeping underperforming employees isn’t fair to the employees who have to work harder to make up the difference. It’s also not fair to your bottom line. Following are some signs it’s time to find a replacement.
Customers Are Complaining
If your customers repeatedly complain about an employee because of poor communication, botched orders or insufficient service, this is a significant problem. You do not want to lose one or more of your best customers because one person on your team is underperforming.
Coaching Isn’t Working
Employees who are not open to coaching are not worth keeping. If you have tried coaching them over and over again, and they still struggle to follow through, you’re wasting your time. It is even worse if they seem to understand your coaching but still fail to deliver. In this case, they are simply not the right fit for your organization. The best team members understand the importance of continuous self-improvement and are receptive to coaching.
They Have Checked Out
Another red flag is that an employee seems to have “checked out.” In
recruiting, we call this phenomenon “the grays.” Signs that an employee has checked out include consistently seeming down, wearing the same clothes every day, showing up late to work and ignoring their appearance or hygiene. If the employee lacks motivation, performance will only worsen over time.
You’ve Lost Hope for Improvement
The most obvious red flag is if you have given up hope they will ever improve. Your employees are an investment. You wouldn’t invest in a piece of real estate if you knew it had no chance of accruing in value. Usually, companies procrastinate firing low performers because they are afraid they won’t find a candidate who can perform better. This fear leads to inaction. But you can’t afford to settle for mediocrity. Your underperforming employees cost you time, money and energy. If the prospect of finding
a high-performing replacement is too daunting to go it alone, consider working with a recruiter to help identify and attract the right person for the job.
Rikka Brandon is a leading recruiting and hiring expert in the LBM industry. She’s the founder of Building Gurus, a boutique training, consulting and executive search firm for building products manufacturers and distributors. She’s also the creator of Hire Power, an on-demand training for recruiting and hiring in the building products industry. If you’re interested in working with Rikka, schedule a call at BuildingGurus.com/Discovery.
Read Rikka’s previous article in this series in the July 2024 edition of BLD Connection’s Material Matters e-newsletter.
[ SALES CONNECTION ]
By Mike McDole
“Please Don’t Make Me Cold Call”
The most important traits of a good salesperson include work ethic, time management, organizational skills, caring about both the customer and the company, product knowledge, understanding profitability, self-confidence and thick skin. Few start their sales career with all these traits. Many start with a good work ethic, but they usually acquire the rest of the traits over time (if at all).
As the senior vice president of sales for a large regional dealer, part of my responsibility was to look for geographical areas for potential growth. Years ago, like many dealers, we started to deliver further than we did traditionally. Our operations stepped up nicely, and they figured out how to properly service our local business and stretch our delivery area. Our operations’ ability to “get it done” opened up new opportunities for the sales department.
Like most dealers, we preferred to promote from within so the company learning curve would be nonexistent. We felt a new salesperson from outside the company would take up to 12 months to learn everything needed about our company (e.g., policies and procedures, various divisions, department heads, etc). So, if we could find someone internally, it would be a huge advantage.
Frank, a 10-year employee, told me he wanted to be considered the first outside salesperson in one of our new territories, located approximately 40-60 miles from our main yard, which was also the closest yard. Frank had 15 years of experience in the industry and lived close to the new territory, so it made some sense.
When he approached me, Frank was
an inside salesperson and was very good at his job. I did not doubt his work ethic or his skills. He checked off all the traits I look for in an outside salesperson except two – self-confidence and thick skin.
After having a few meetings with him, I decided to give him a shot. I figured his positives outweighed his negatives. I felt that if I worked with him and helped him get some customers, his self-confidence would rise to an acceptable level. I also thought that after being on the road for a while, he would toughen up and not take everything personally.
get new accounts was extremely low on his list of strengths and something he dreaded. This was never clearer to me than about 12 months into his new position.
Like most new salespeople, Frank gravitated toward small builders and remodelers. I was okay with this as long as he could maximize deliveries, get strong margins and have good collections. As I expected, Frank was able to do all three.
I spent as much time on the road with him as possible, and we landed a few home builders to add to Frank’s portfolio. Things seemed to be going pretty well because Frank serviced the heck out of his customers, and they seemed to like and respect him. However, he wasn’t “hitting it out of the park” numbers-wise.
When I discussed this with him, he said, “You always said that while home runs are nice, singles and doubles score runs, too.” I explained to Frank that singles and doubles do indeed score runs, but one must put them together more often to score runs.
It was clear that Frank serviced his accounts very well. However, trying to
While driving through his territory and from the highway, I could see a large parcel of land being cleared. I told Frank about it and asked him to see what he could find out. Reluctantly, the next day, he said he had spoken to one of the guys clearing the land. Unfortunately, the site guy had no idea who the developer/builder was. This is certainly not unusual.
Several weeks later, I saw multiple foundations going in. Again, I notified Frank. Once again, the foundation company told Frank it had no idea who the developer/builder was. I could have found out who the builder was, but I wanted Frank to learn.
I asked Frank how he thought he could determine who was building this project. His response frustrated me. He said he didn’t know. I told him to ask his existing customers or, better yet, go to the town’s building department to find out who pulled the permit. He got the permit information, but it was under a holding company, and none of the principals were familiar to me or him.
It wasn’t long after that I saw lumber delivered. My experience tells me that once lumber is delivered, getting that builder to switch suppliers is almost impossible. However, this was a very large project with 30+ duplexes. My first impulse was to go with Frank to visit the job site, but I figured this would be another good learning experience for Frank to go by himself.
I informed Frank that the builder or his super would be onsite during framing, so he should introduce himself and our company and get as much information as possible. Then, we would set up an appointment with them for Frank and me to go over how we can help them build the project faster, more efficiently, and more profitable.
Once again, he was very reluctant. He said they already have a lumber supplier, so why would they switch? I explained that we sold many other product categories, and perhaps we could get their roofing, siding, installed insulation, drywall, or interior doors and trim. Or, at the very least, if they opened an account with us, we could be their “insurance policy” just in
case their main supplier had issues servicing them.
Although Frank was unsure about me sending him into battle without reinforcements, like a good soldier, he said he would go there the next day.
Early afternoon the next day, Frank called me. I was eagerly expecting this call, hoping this would be an enlightening moment. And it was. Frank was upset and yelled at me for “forcing” him to cold-call. I asked what happened, and Frank told me the guy on site immediately started yelling at him and telling him to get off his property. I could tell he was practically in tears.
I told Frank to please calm down, but he continued yelling. I raised my voice and interrupted his rant. I asked, “Did the guy say you were ugly?” Frank said, “No.” I asked, “Did he say you smell?” Frank replied, “No.” I asked, “Did he say you are stupid?” Frank said, “No. What’s your point?” I said, “My point is that what he said wasn’t personal, so stop taking it personally.”
He finally calmed down. I explained that he could’ve been the fifth
interruption to the man’s work that day, or perhaps the guy was a jerk. Who knows?
A week or two later, Frank informed me that outside sales wasn’t for him. I agreed. We found him a new position within the company that worked perfectly for his pros and cons. Both Frank and the company lived happily ever after.
A footnote to this story: I sent one of our specialty salespeople to pursue the customer, and eventually, we got all the interior doors, trim and hardware on all the duplexes.
Mike McDole has 40+ years of experience on the firing line for pro dealers in the LBM Industry and is the principal of Firing-Line LBM Advisors. He’s also partners with Greg Brooks of Executive Council on Construction Supply and his learning management system. Mike can be reached at (774) 372-1367 or Mike@ FiringLineLBM.com.
[ HR CONNECTION ]
By Dena Cordova-Jack
Attract and Retain Entry-Level Talent
Entry-level employees are crucial to boosting operational efficiency and building good customer relations. But while most organizations have a well-developed strategy for hiring senior executives, their recruiting, hiring and onboarding of entry-level workers are often afterthoughts. This hinders attracting and retaining valuable talent. Let’s explore some common problems in hiring entry-level workers and show how to solve them.
• Neglecting the Employer Brand: The best potential front-line employees today are attracted to organizations known for a positive work culture, opportunities for growth, commitment to employee well-being and community impact. Failing to showcase your company’s value proposition could turn off potential top talent. Tell your story and the industry’s story. I know of many individuals who began as truck drivers or yard workers and then, thanks to a career path that helped them build the necessary skills, advanced into management and leadership – even without a college degree. That’s a rarity in most businesses today. Make sure your prospects know LBM is an exception.
• Insufficient Recruitment Channels: Use online platforms, social media and industry-specific job boards to spread your message further and faster than bulletin-board notices and word of mouth ever could. Harness the power of YouTube by creating one- to two-minute videos promoting your company, your culture and the opportunities available to next-generation employees.
• Poor Candidate Applicant and Interview Experience: Lengthy and
cumbersome application processes, lack of timely communication and disorganized interviews can leave candidates feeling frustrated and undervalued. Many candidates lament that they apply and then never hear a word from their prospective employer. Don’t be that company. Even an e-mail thanking an applicant for applying and letting them know that you have moved forward in the hiring process is respectful. You never know when you may want to hire that individual later.
• Lousy Onboarding: Most entry-level workers will leave an organization between 90 and 120 days if they are not made to feel part of the team. Get new associates started fast by having them fill out necessary documents before their start date. Ask their manager to take them to lunch on their first day. Ensure introductions are made to the team. Assigning a mentor or buddy to a new employee, especially within the first 30 days of employment, will go a long way in helping the associate assimilate into the company quickly.
• Limited Career Development Opportunities: Companies risk losing ambitious talent when they fail to provide clear paths for career development and training programs for personal growth. Show new employees how they may advance through the company. Lay out a clear path for goals that need to be achieved for each milestone. And offer ways to help that person learn on their own initiative, such as helping pay to learn specific skills and/or get a college degree.
• Inadequate Employee Engagement: Employees who feel undervalued,
unsupported or disconnected from the organization’s mission are more likely to seek opportunities elsewhere. Have feedback from an employee survey? Don’t ignore it. Even unpleasant feedback can be managed well if employees feel their opinions matter. Foster a culture of recognition, provide regular feedback and create channels for open communication to increase employee engagement and job satisfaction.
• Lack of Diversity and Inclusion Initiatives: Our society continues to grow more diverse, and today’s candidates are more likely to be attracted to companies that prioritize and embrace people who look like them. The next generation expects diversity, equity and inclusion to be part of the company’s culture. Companies should implement strategies that value and respect individuals from all backgrounds. By building a strong employer brand, using diverse recruitment channels, providing a positive candidate experience, prioritizing career development and career pathing, fostering employee engagement, and embracing diversity and inclusion, organizations can position themselves as desirable employers and attract the talent they need to succeed.
Dena Cordova-Jack is a 30+ year LBM industry veteran. She has held various positions in her career, from trading commodities, purchasing and sales management, regional sales director to her current role as vice president, organizational development with the Misura Group.
[ SAFETY CONNECTION ]
By Melissa Olheiser, OHST
Proper LBM Handling and Storage
The summer season gets busy, and often there’s a rush to get the job done. Thinking about the task at hand and communicating proper handling and storage of lumber and building materials are fundamental to maintaining a safe and efficient lumber yard. It’s essential that all employees are well-trained in safe lifting techniques, proper use of equipment and correct stacking methods to protect their well-being and enhance productivity while minimizing waste. By adhering to best practices and safety guidelines, companies can create a safer work environment that promotes health, efficiency and
operational excellence. This topic is crucial for maintaining a safe work environment, as improper handling and storage can lead to accidents, injuries and fatalities. Following are some key points to remember.
Personal Protective Equipment (PPE)
Wear lightweight, loose-fitting clothing made of breathable fabrics like cotton to allow for better air circulation and sweat evaporation. Dark colors absorb heat, so opt for lightcolored clothing that reflects sunlight. Additionally, wearing a wide-brimmed hat and sunglasses can provide shade
and protect your eyes from harmful UV rays.
Proper Lifting Techniques
Demonstrate how to lift heavy lumber and materials safely to avoid back injuries. Emphasize team lifting or utilizing lifting devices, such as forklifts, carts or dollies, for oversized or exceptionally heavy loads.
Safe Use of Equipment
Train on the proper use of forklifts, pallet jacks and other machinery. Regularly inspect and maintain equipment to ensure it is in good working condition.
Storage Safety
Follow all guidelines for stacking lumber to prevent collapse. Ensure walkways and aisles are clear to avoid tripping hazards. Properly store hazardous materials, including chemicals, used for treating lumber.
Fire Safety
Identify and minimize fire hazards in a lumber yard, such as sawdust and flammable liquids. Properly store and dispose of flammable materials. Conduct regular fire drills and review locations of fire extinguishers.
Handling Hazardous Materials
Follow safety procedures for dealing with treated lumber and chemicals or refer to Safety Data Sheet (SDS) for pertinent information. Properly label and store hazardous substances. Follow emergency response procedures for chemical spills.
First Aid and Emergency Procedures
Training employees in basic first aid and CPR. Clear communication of emergency procedures, including evacuation routes and assembly points.
Housekeeping and Cleanliness
Keep the work area clean and free of debris to prevent accidents. Regularly sweep up sawdust and dispose of waste
materials properly.
Focusing on these aspects can help create a safer working environment in a lumber yard, reducing the risk of accidents and injuries and ensuring your employees have a safe and enjoyable summer.
Contact OECS, BLD Connection’s preferred OSHA safety consultant, at (763) 417-9599 for more information.
[ MEMBER CONNECTION ]
Dealer Acquisition Trend Accelerates
Several lumber dealers in the BLD Connection region were recently involved in merger and acquisition transactions. Following is a roundup of M&A activity.
Kodiak Building Partners Expands Reach with Acquisition of Simonson Lumber
Kodiak Building Partners recently announced the acquisition of Simonson Lumber in Minnesota, which has six locations in central Minnesota.
“Simonson Lumber and its customers will benefit most from Kodiak’s ‘locally led’ mentality,” said Eric Borchardt, president of Simonson Lumber. “This partnership allows us to serve our customers in a way that is unique to our region, while Kodiak’s support system ensures we have everything we need to thrive in a fast-paced market.”
Zuern Building Products Acquires Saeman Lumber Company
In June 2024, Zuern Building Products & Design Center announced the acquisition of Saeman Lumber Company in Cross Plains, Wisconsin.
“Saeman Lumber, established in 1876, shares our commitment to high-quality lumber and building materials across all categories,” Zuern said in its announcement. “We’re especially grateful to Bob Saeman, who entrusted Zuern to continue with his family’s remarkable fourth-generation legacy.”
R.P. Lumber Announces Several Acquisitions
R.P. Lumber Co. Inc. recently announced a series of acquisitions, including:
• Thorne Lumber Company’s three locations in northwestern Missouri.
• Custer Do It Best Hardware & Lumber in Custer, South Dakota.
• Schrock Lumber Co. in Mediapolis, Iowa.
Builders FirstSource Acquires Schoeneman’s Building Materials Center
In May 2024, Builders FirstSource acquired Schoeneman’s Building Materials Center, which operates locations in Harrisburg and Sioux Falls, South Dakota, and Hawarden and Spencer, Iowa.
“This partnership will allow us to provide new technologies and infrastructure that local contractors need to be successful,” Schoeneman said in an announcement about the transaction.
Brett Hanson Participates in 2024 Federated Insurance Advisory Council
BLD Connection Board member Brett
Hanson was among the 17 business leaders representing 13 industries and 15 states who gathered in Scottsdale, Arizona, earlier this year to participate in the 35th annual Federated Insurance Advisory Council.
During this two-day session, Hanson shared his thoughts on the value of choice, specifically the value of being an employer of choice for key employees and a business of choice for member clients.
Advisory Council members shared
insights and feedback on best practices for challenges they may face. They noted that support from Federated Insurance risk management resources, as well as their relationship with BLD Connection, is essential in gaining an edge and being a “top choice” in their industries.
“Our Advisory Council strengthens the value Federated delivers to businesses across the nation,” said Federated Insurance Chairman Jeff Fetters. “We are tremendously grateful to these leaders for sharing their
industry insight, as their feedback helps us continue protecting all clients from the evolving risks threatening their success.”
GROW LP SMARTSIDE SALES
Feel confident knowing you are offering your contractors and clients the highest quality pre-finished LP Smartside available. Backed by the industry’s strongest 30-year fully transferable warranty.
• Quick and reliable service.
• Finished with two full coats of color (and three to material edges) vs. standard prefinishing’s single coat.
• Cured using an infrared and heat process to produce gorgeous, long-lasting results that can’t be achieved with traditional on-site painting.
• Uses only industry-leading PPG DURACOLOR™ exterior-finish topcoats, formulated to protect against extreme weather and UV degradation, and backed by a 30-year warranty.
Caterpillar Forklift: 1994 GPL40-G2
Caterpillar Forklift for sale. $15,500. Original owner. 7785 Hours. 8300#, Triplex 168/85 Mast, 78” x 48” Carriage, 48” x 8” x 1-1/2” Forks, 4.3l 6 cyl Gas. Good condition. Service and tuneup in June 2024. Contact Bob Halleland at Story City Building Products, Story City, Iowa, scbp57@ gmail.com.
Do you have company news or a product announcement to share with BLD Connection members? We’d love to hear about it. Email news releases to tim@bldconnection.org for possible inclusion.
