bpd jan 2014
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January 2014 issue of Building Products Digest, monthly magazine for lumber & building material dealers & distributorsTRANSCRIPT
©2014 Simpson Strong-Tie Company Inc. DTCP2D13
My customers are looking for quality and innovation that they can count on. For years we have experienced
that quality with Simpson Strong-Tie and continue to reap the benefi ts of products that save time and money and perform above expectations. There is no equal!”
Lonnie Holmes – Manager, Bloedorn Lumber
To learn how our commitment to quality, innovation and support adds value to you and
your business, call (800) 999-5099 or visit strongtie.com/genuine.
LBM TECHNOLOGY TRENDS WESTERN WOODS SPECIAL FOCUS: SOUTHERN PINEJANUARY 2014
INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORS
BPD BuildingProducts Digest
Special Features9 INDUSTRY TRENDS
HOW DEALERS ARE USING TWITTER
10 FEATURE STORYBEWARE SURPRISE SALES TAX
12 PRODUCT SPOTLIGHTMANUFACTURED STONE VENEER
14 FIRST PERSONWIDEN YOUR SOFTWARE SEARCH
16 COMPANY PROFILE: SILVASTAR
28 SPECIAL FOCUS: WESTERN WOODS
38 SPECIAL FOCUS: SOUTHERN PINE
4 Building Products Digest January 2014 Building-Products.com
January 2014 Volume 32 Number 11
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In Every Issue6 TOTALLY RANDOM
18 COMPETITIVE INTELLIGENCE
20 OLSEN ON SALES
25 MOVERS & SHAKERS
26 NAWLA: THINKING AHEAD
36 ASSOCIATION UPDATE
43 NEW PRODUCTS
47 IN MEMORIAM
48 CLASSIFIED MARKETPLACE
49 DATE BOOK
50 IDEA FILE
50 ADVERTISERS INDEX
Sparkman, ArkansasPhone: (870) 226-6850 • (870) 678-2277 • Fax: (870) 678-2522
The White Family – Serving the Lumber Industry for Four Generations
High Quality Arkansas Southern Yellow Pine Boards,Pattern Stock and 5/4 Square Edge, Flooring, Beaded Ceiling,
105, 116, 117, 119, 122, 131, 139,5/4x12 Nosing.
6 Building Products Digest January 2014 Building-Products.com
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BPDBuilding Products Digest
TOTALLY RandomBy Alan Oakes
Let’s get growingFIRST, A HAPPY NEW YEAR to all our readers. I hope you had a wonderful holiday
with your families and are charged up for the year to come. May 2014 be prof-itable personally and in business.
This year certainly holds a lot of promise, as forecasts suggest the gains of the lasttwo years will continue in 2014. Indeed, at the top end of the housing starts forecasts,numbers will approach historical averages. Most businesses that have survived arealready facing the challenge of how to grow again. In speaking to many owners, Iknow some are nervous about the thought—and for good reason. When and where toinvest is a tough question.
I think that many would admit that in the years 2004-2007 we were all drinking theKool-Aid and, as the market grew, we may have taken actions that our instincts toldus not to. Companies entered the market and, just as quickly, exited it with no solidfoundation of business. Others invested heavily, taking on debt to manage what turnedout to be phantom business. Many paid a heavy price, and the industry today is a frac-tion of what it was only six years ago, with an awful lot of pain during the process.But the good news is that if you are reading this issue, you were one of the great sur-vivors of our “Great Depression.”
We as an industry (and this is your comment to me over the years) never learn. Sothe question perhaps to ask as the industry grows again is, how are we going to growthe right way? Whether large or small, we will face the challenge of growth this year.
The challenge is, if you are seeking out new business, it has to be worth the timeand risk. Too often we chase new opportunities without considering whether theseactivities can be short- and long-term profitable, a good use of resources, worth therisk of adding new resources, or fit into the culture of our company. Perhaps the latteris what we do not take heed of often enough.
For any growth decision you take (developing or stocking a new product, addingstaff, expanding, remodeling, rebuilding, etc.), make sure you have the funds. Monitoryour cash flow intently. Nothing chases off your friendly banker like money wildlyflowing in and out, as many discovered last time round. Indeed, get the bank to buyinto your growth and any short-term negatives that you anticipate. Line up financingbefore you expand. No surprises!
Keep staffing increases to the minimum to protect cash. Staffing is normally one ofour top expenses—consider outsourcing in the beginning.
Work with your suppliers, where appropriate, on scheduling, co-op marketing,training, etc.—all to get your new program off the ground as quickly as possible.
The key to any business success for the long term is to have a strategy that isfocused, concentrates on profit opportunities with healthy margins, and allows you towork with customers that are profitable to the company. (Yes, you know the ones youdon’t want: the ones who are low-margin to start and get even lower with their con-stant demands). Don’t waste time or resources on unprofitable business. Let those cus-tomers go elsewhere. Don’t let them bleed you.
Identify the driver of your business and concentrate your energies on building that.Understand where you can gain the most. In previous columns I have suggested rank-ing your customers by their value to your business (by theway, that value changes every year). Pay attention to thequality of their business. Their value is not only thehard profit on products sold, but also includes the costsof servicing them. When that is done, you probably willget a better understanding of their true value.
It’s the same with new customers. New business isgreat—in fact, the lifeblood of every company—butif you lack the skill set in your company tomanage this new business, and if it does notfit in with your culture (sales or otherwise),stay clear. All business is not created equal.
Again, have a great year. I look forwardto meeting you on my travels.
Alan Oakes, [email protected]
WHY SILVASTAR?
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
30 acre facility in Bellingham, WA
200 million board ft annual capacity
6 car rail spur
In business since 1987
All manufacturing is done at the same location
Raw materials brought in by rail
Rail, Container, Truck, and Van delivery
SilvaStar Forest Products
Premium Fascia, Trim, Siding, Decking, Patterns, Furring Strips
All produced from selected J-Grade & Square Edge KD SPF
SilvaStar Custom Milling & Staining
Custom Drying, Milling, Staining and Priming
Custom Barcoding, Packaging, and Branding
2 Nyle low temperature dry kilns
SilvaStar Custom Reloading & Storage
for substantial savings
WHY
WHY SILVASTAR?
SILVASTAR?
30 acre facility in Bellingham, WA
200 million board ft annual capacity
6 car rail spur
In business since 1987
30 acre facility in Bellingham, WA
200 million board ft annual capacity
6 car rail spur
In business since 1987
30 acre facility in Bellingham, WA
200 million board ft annual capacity
All manufacturing is done at the same location
Raw materials brought in by rail
Rail, Container, Truck, and Van delivery
All manufacturing is done at the same location
Raw materials brought in by rail
Rail, Container, Truck, and Van delivery
All manufacturing is done at the
Raw materials brought in by rail
Rail, Container, Truck, and Van delivery
SilvaStar
Premium Fascia, Trim, Siding, Decking, Patterns, Furring Strips
All produced from selected J-Grade & Square Edge KD SPF
SilvaStar Forest Products
Premium Fascia, Trim, Siding, Decking, Patterns, Furring Strips
All produced from selected J-Grade & Square Edge KD SPF
Forest Products
Premium Fascia, Trim, Siding, Decking, Patterns, Furring Strips
J-Grade & Square Edge KD SPF
SilvaStar
Custom Drying, Milling, Staining and Priming
Custom Barcoding, Packaging, and Branding
2 Nyle low temperature dry kilns
SilvaStar Custom Milling & Staining
Custom Drying, Milling, Staining and Priming
Custom Barcoding, Packaging, and Branding
2 Nyle low temperature dry kilns
Custom Milling & Staining
Custom Drying, Milling, Staining and Priming
Custom Barcoding, Packaging, and Branding
2 Nyle low temperature dry kilns
SilvaStar Custom Reloading & Storage
for substantial savings
Custom Reloading & Storage
for substantial savings
Custom Reloading & Storage
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.
for substantial savings
See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.
for substantial savings
See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
WE BRING VALUE TO OUR CUSTOMERS, BOTTOM LINE.See our product catalogue online at www.silvastar.com | Lori DeWitt +1 (360) 647-2434
A DIVISION OF THE TAPCO GROUP
And that’s where the comparisons end.
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Our new thick slate looks just like the real stuff.
Building-Products.com January 2014 Building Products Digest 9
DESPITE WAILING FROM experts on the necessity of com-panies being active on Twitter to instantly communi-
cate with customers and prospects, few LBM dealerstweet.
Of the nation’s estimated 10,000 LBM retailers, the vastmajority appear to have never set up a Twitter account and,among those who have, only about 30 independents sendout more than two tweets a week. Next to feeling the ser-vice is not worth their time, the next primary reason for notusing Twitter more is that dealers feel they don’t have any-thing worthwhile to say. So just what are those 30 activeusers finding to talk about?
BPD surveyed the communications of 30 indpendentlumber dealers most active on Twitter. What we discov-ered is that few are dreaming up long, complex posts toamaze the masses (after all, the service limits messages to140 characters or fewer). Most are building an identity,such as:
The Linker. Linking to home improvement articles(like “How to Install Crown Moulding”) may kickstart aproject—and a purchase. Linking to industry news (the lat-est NAHB housing statistics) can also get pros thinking
about you as an expert.Links can also be time-savers. It can be doubly time-
consuming to maintain presences on multiple social mediaplatforms, so some dealers use their Twitter account pri-marily to link to updates on their blogs or Facebook page(which allows posts in excess of Twitter’s 140-characterlimit).
In addition to links to its Facebook page, Parr Lumber,Hillsboro, Or., sends out several links a day to photos it’scollected on its Pinterest site, highlighting glamorous pro-jects and interesting new products.
The Conversation Starter. Ideally, tweeters want theirname spread not only to their followers, but in turn to theirfollowers’ followers, so it’s key to engage them and turnthe monologue into a dialogue. Dealers ask what their fol-lowers’ latest project is, what their dream purchase is, orwhat their plans are for the holidays. Peter Lumber Co.,Pleasantville, N.J., and City Lumber Co., Dyer, Tn., solicitparticipation with a weekly trivia contest.
The Commenter. No one joining your conversation?Chime in on theirs! Dunn Lumber, Seattle, Wa., has col-lected more than 8,500 followers by themselves followingan equal number of users and regularly commenting ontheir tweets and photos—and thanking anyone who men-tions Dunn Lumber. The idea is to get the Dunn Lumbername out wide and often, and to be seen as a friend to thecommunity.
The Promoter. Got something on sale? Tweet it.Ashby Lumber, Berkeley and Concord, Ca., publicizesspecials on a near-daily basis. Meek’s Lumber,Springfield, Mo., even tweets out downloadable coupons.
How about an upcoming contractor night or otherevent? Ro-Mac Lumber, Leesburg, Fl., uses Twitter todirect followers to its weekly “Around the House” radioshow.
The Recruiter. About half of the 50-plus Tweets amonth by Lyman Lumber advertise the various job open-ings at its Wisconsin and Minnesota facilities. (With morethan 250 locations, 84 Lumber has so many positionsavailable that it maintains a separate Twitter feed,84LumberCareers.)
INDUSTRY TrendsDealers on Twitter
What the Top 30 Are TweetingSurvey of 30 actively tweeting independent LBM dealers,
based on 967 total tweets from Nov. 1-Dec. 2, 2013
How dealersare using Twitter
10 Building Products Digest January 2014 Building-Products.com
MOST BUSINESS LEADERS are com-fortable discussing things like
risk, ROI, and market share. They areless comfortable discussing sales tax,but it’s a conversation that needs tohappen.
States are getting increasingly cre-ative about finding new revenuesources through sales tax. Businessescan easily incur “surprise” tax liabili-ties without realizing it. Assumingsales tax rules are the same across allyour territories can be a costly mistake.
What is Nexus?Sales tax starts with something
called “nexus.” Nexus is the relation-ship a business must have with anauthority (like a state or local govern-ment) in order for that authority to col-lect taxes. Let’s simplify that. Imagineyou have a store in Nebraska: you ownyour building, pay employees, andcomplete business transactions in thestate. All these things give you nexusin Nebraska, and the state will collectsales tax from your business.
Say you have a customer, Jim, whoworks in Iowa, but comes to Nebraska
Are you at risk of surprise sales tax?
FEATURE StoryBy Jessica Arant, DMSi
to purchase his materials. You proba-bly don’t have nexus in Iowa justbecause your customer works there.But let’s change the situation. Jimcalls in his orders from Iowa and youremployees deliver materials to his job-sites in that state. Now Iowa mightargue you have nexus in their state andyou owe them sales tax.
The problem businesses face lies inthe words “probably” and “might.”Each state has different nexus triggers.If your Nebraska store sells an item topeople in two different states, you mayhave nexus in one but not the other.Things like buildings and equipmentare almost universal triggers, butmany states are starting to definenexus based on activity rather thanphysical presence. Sending anemployee to a trade show, industryconference, or training seminar can allgive you nexus in a state. You canestablish nexus in Arizona if anemployee spends two days of the yearthere. If your Nebraska store has a lotof Iowa customers like Jim, Iowamight argue you have an “economicnexus” in their state, even if all your
sales take place in Nebraska.
Delivery of GoodsDelivering purchased items is a
common nexus trigger, but there are avariety of ways states approach theissue. In Georgia, the “taxable event”takes place at the ship-to location, butin Kansas, it occurs at the ship-fromlocation. In some cases, just deliveringan item may not trigger nexus, butoffering a service can. (It’s the differ-ence between delivering a door, anddelivering and installing a door.) Themethod of transportation may be atrigger as well. Are you using yourown fleet, a common carrier likeFedEx, or a third-party vendor? Thebedding store Mattress World is anexcellent cautionary tale about ignor-ing delivery-related sales taxes.
Mattress World is located on theOregon-Washington border. ManyWashington residents would cross theborder to purchase and pick up mat-tresses. Mattress World started offer-ing delivery and set-up service to theirWashington customers through athird-party vendor. But hiring andsending that vendor across state linescreated nexus under Washington’s taxcode. The company didn’t plan for thisand ended up with a $1.7 million (plustax) debt to the state.
Jurisdictional BoundariesWe’ve been discussing nexus trig-
gers as a state-by-state issue. The truthis you can create additional nexuswithin the same state by crossing intonew tax jurisdictions. States mightdefine their tax jurisdictions by citiesor countries, but the boundaries aren’talways so clear. To further complicatethe matter, some states allow jurisdic-tions to set their own sales tax rules.Getting business from a new area intown means you could owe a com-
KEEPING TRACK of differing sales tax rates within your selling area is imperative. Consider that inone area of Colorado, there are six different tax rates contained within a single zip code!
Building-Products.com January 2014 Building Products Digest 11
money for the businesses, but it need-ed to be done. Shortly before enactingthis new rule, California announced aplan to hire 300 auditors. Businessesare held responsible for complyingwith tax rules, even if those rules arealmost impossible to understand.
The Take-Away• Check the nexus triggers for every
territory your company interacts with.Don’t assume you need a building orpermanent employee in a state to owesales tax there.
• Check the tax rules regardingdeliveries for every area you deliverto. You may need to collect additionalsales tax from customers in someareas but not others.
• Check the jurisdictional bound-aries for every state you do businessin. Make sure you’re collecting thecorrect amount of sales tax for eachjurisdiction and remitting payment tothe correct authority.
• Pay attention to definitionsattached to sales taxes. The distinc-tions between taxable and exemptitems may seem arbitrary and silly, butthe state is going to be very seriousabout collecting fines and penalties.
Sales tax is incredibly complicated.You need a good tax consultant to
pletely new sales tax to a completelynew authority. Colorado is notoriousfor this: they have six different rates ina single zip code!
What’s in a NameDefinitions are one of the stickiest
points in sales tax, in part becausethey can seem so arbitrary and absentof common sense. KitKats, Twizzlersand Whoppers are not “candy” underthe Streamlined Sales Tax definitionbecause they all contain flour. Indianacategorizes marshmallows as “candy”(taxable) and marshmallow crème as“food” (exempt). Pennsylvania doesnot tax clothing, but does tax “fur arti-cles,” which include “articles made ofwoven animal hair or wool that resem-bles fur in appearance.” (Presumably awool sweater would be exempt, but acoat with sheepskin trim would not.)
California’s 2013 tax on “certainlumber and engineered wood prod-ucts” is a great example of definition-related chaos. Under this rule, “fenc-ing, railing and decking” are subject tothe tax, but bamboo fencing, pre-con-structed railing sections, and “deckpackages” are exempt. Retailers spentcountless hours determining whichitems in their catalogs were taxable. Itwas a huge investment of time and
make sure you follow the rules in alljurisdictions where you have nexus.But once you know what you’re sup-posed to do, the next step is doing itconsistently.
Automating tax calculation is agreat strategy because it virtuallyeliminates the risk of human error.Services like Avalara work with yourERP system and calculate the appro-priate rate for each transaction. Yoursoftware platforms should be robust,yet flexible enough to handle theinevitable changes in sales tax rules.
California’s lumber tax impactedproducts so inconsistently that mostPOS programs couldn’t apply it cor-rectly. Many businesses resorted tocalculating sales tax by spreadsheet.Agility software was one exception. Itadapted to the change easily, and userslike Peterman Lumber, Fontana, Ca.,and S&J Lumber, Madera, Ca., wereable to incorporate the tax without aproblem.
You may not want to think aboutthis topic, but it’s far better to discusssales taxes now with your colleagues,rather than later with an auditor.
– Jessica Arant is communication coor-dinator for DMSi Software, Omaha, Ne.Reach her at [email protected].
12 Building Products Digest January 2014 Building-Products.com
from natural stone molds and thenmeticulously hand colored with miner-al oxide pigments to give it the depth,pattern, complexity of color, andunique pattern of stone. Due to itslighter weight, it actually has manymore design uses than natural stone.
Manufactured stone veneer can beadhered to most wall surfaces, since itis one-third the weight of full-thick-ness stone. To comply with buildingcodes, stone veneers cannot exceed 15pounds per square foot, which allowsfor greater design flexibility.
Durability is another prime charac-teristic of stone veneer, which is ofcrucial importance to developers,builders and architects who need pre-dictable strength, consistency andquality in their stone veneer products,ensuring materials are safe to handleand remain secure over the long term.
MANUFACTURED STONE veneerpromises to be more popular
than ever in the residential buildingmaterials market this year, as its easeof installation and extreme versatilitymake it a perfect solution for cus-tomers looking to keep pace withtoday’s design trends.
Whether it’s a production builderseeking innovative ways to add curbappeal to a community or homeownerswishing to update their residencethrough a creative remodel, consumerscontinue to favor manufactured stoneveneer because of its varied uses. Andthe number of applications are stillgrowing: the product’s high adaptabil-ity means it is often a natural fit foreven the most innovative develop-ments in design.
Pioneered more than 50 years ago,manufactured stone veneer is cast
The many usesof manufacturedstone veneer
PRODUCT SpotlightBy Ed Perez, Boral
Concrete mix used to make stoneveneer must withstand at least 1,800psi without damage, which ensures itsdurability for years of service. In fact,stone veneer products usually comewith a 50-year limited warranty.
Made with Portland cement andlightweight aggregates, manufacturedstone veneer is low maintenance andcan tolerate a wide range of climates.Boral’s Versetta Stone, for example, israted for wind resistance of over 100mph. This panelized stone veneer iseasily installed in any climate, becauseits mechanical fastening system doesnot require heating the wall to a cer-tain temperature during cold weather.
Residential projects of all types canbenefit from the installation advan-tages of panelized stone veneer, asevidenced by the recent completion ofa $27.9-million affordable assisted liv-ing community in Lansing, Il. Thecommunity, known as St. Anthony ofLansing, houses 125 apartment unitsin a three-story building on a four-acreparcel. General contractor LedCorselected panelized stone veneer for itsease of installation in cold weather.The portion of the building thatinvolved 27,000 ft. of product appliedvia traditional stone masonry methods
Building-Products.com January 2014 Building Products Digest 13
took three months to complete andrequired a full wall tent and heat. Incomparison, installer ResidentialExteriors applied 27,000 ft. of panel-ized stone veneer (along with an addi-tional 54,000 ft. of fiber cement shakesiding and trim) to the building in justthree weeks, without the need for awall tent and heat. Even with the coldweather, there were no delays.
More cost effective than naturalstone and available in more than 100colors and textures, stone veneer isincreasingly popular for both exteriorand interior applications. Stone veneercan be utilized in almost any manner,even as cornices, copings, wall brack-ets, and door surrounds. No matterwhere it’s used, stone veneer makesgood construction and design sense—and even a small amount makes alarge statement. Following are someof the varied applications that dealerscan now target to sell stone veneer:
Fireplaces: With the wide varietyof stone veneer styles available, it iseasy to achieve virtually any look forfireplaces. Stone veneer fireplaces canfeature anything from a traditional,rubble texture to a modern, sleek feel.They can be ornate, reminiscent ofVictorian styles, given a Tuscan or
Mediterranean appearance, or simply astone wall and floor on which a woodburner sits.
Kitchens/Bathrooms: Stoneveneer islands and backsplashes canadd texture and variation to kitchens,while decorative stone veneer accentscan lend a rustic or natural vibe tobathrooms. A little wall cladding instone veneer goes a long way.
Arches/Doors/Windows: An ordi-nary arch, door or window can betransformed into a stunning architec-tural feature just by adding some stoneveneer accents. Using stone veneer tooffset brick window accents is a grow-ing trend, as is combining differentstone veneers to give a very cus-tomized look. Keystone windows andarches are also trendy as are windowand door surrounds made from carvedor inset stone.
Exterior Facades: Whether usedas an accent or a full wrap, stoneveneer can add curb appeal to anyhome. Using different materials andcolors can provide a three-dimensionalquality, creating more interest anddepth to a building. Layering alsohelps articulate human scale whilecomplementing the architecture andsurroundings. More earth-toned colorsare being favored by architects, whoare incorporating stone veneer intoexterior facades as a way to comple-ment the natural scenery around manyhomes. In some cases, styles that emu-late the natural stone found in nearbysurroundings are used, giving the illu-
MANUFACTURED stone veneer use is growing both indoors and out. (Photos by Boral USA)
sion that a piece of the landscape hasbeen incorporated right into the home.
Outdoors: A major trend today isthe use of stone veneer for outdoorfireplaces, kitchens, barbecue islands,and cabanas. Stone veneer walls canbe used to add character and form togardens and outdoor yards. Theirbeautiful aesthetics and extreme dura-bility also make them a perfect optionfor lining driveways and property bor-ders. A Tuscan vernacular is also pop-ular, in which elements are completelycladded—as if the materials were“pulled off the land” and the out-buildings (such as a pool house orshed) have the same look.
Columns: With columns a pre-ferred solution for housing heat struc-tures in backyards, stone veneermakes for an ideal wrap because of itslight weight. Stone veneer columns ina square shape are a favorite at themoment for backyards, while tradi-tional, Tuscan-style columns are aclassic choice for adding old-worldcharm to entranceways.
No matter what your customers’design needs and interests, stoneveneer is likely to be an ideal fit, givenits beautiful aesthetics, adaptability,durability and relatively low cost.
– Ed Perez is the area sales managerfor Boral Stone Northern California andNorthern Nevada. Based in Roswell, Ga.,Boral USA subsidiaries include BoralBricks, Boral Roofing, Boral Stone, andBoral Material Technologies. Reach himat [email protected].
14 Building Products Digest January 2014 Building-Products.com
OVER THE YEARS, I have sharedyour pain, struggles and sleep-
less nights with—dare I say it?—IS(Information System) or, as it issometimes called, IT (InformationTechnology). I’ve never liked eitherof those descriptions. Let’s move to amuch broader description: ERP, orEnterprise Resource Planning.
Why is it that we spend countlesslabor hours on budget meetings, inte-gration methodologies, maintenance,inappropriate functionality, and theinflexibility to adapt to changing busi-ness needs? What frustrates me evenmore is that we allow this IT to ruleour business lives with substandardperformance, only to be assured,“Don’t worry, your software providerwill have it fixed in the next enhance-ment release.”
I contend that LBM industry-spe-cific solutions don’t have to be youronly options. A SKU is a SKU is aSKU. You’re telling me that the bar-code on that Victoria’s Secret shelf isdifferent from the barcode on a gallonof paint at your store? I guarantee youthat walking down Fifth Avenue andvisiting the Ralph Lauren store orGucci store, that they don’t have theERP struggles that our industry does.
You don’t need to have exponen-tial budgets, either. There are solu-tions outside our industry that offerthese ancillary benefits for us to runour day-to-day operations. They arejust as efficient and also effective forour internal and external customer.
Let’s look at the facts. Comparethe growth of our industry in terms ofdealers, market share, revenue andprofitability to that of Home Depot,
Industry-specific softwareisn’t the only solution
FIRST PersonBy Gordon Birgbauer, AIIS/MFP
Lowe’s and Menards. They, like mostFortune 500 up to 5000 companies,use outside ERP systems.
The experts at your local “geekshop” have probably never even heardof your system. If you search Monsteror any of the other employment net-works for IT or ERP jobs that relate toour industry’s specific software pack-age, you won’t find a huge pool ofqualified prospects.
Why is it that some co-ops use sys-tems like SAP, but offer their dealersdifferent ERP solutions? I guess theynever read Harvard professor MichaelPorter’s work on value chain and theimportance of transparency to the cus-tomer in order to bring value to allstakeholders. The basis of his thesis isthat Enterprise Resource Planningfacilitates improvement to a compa-ny’s value chain, thus generating sig-nificant competitive advantage.
ERP is the integration of a busi-
ness software solution into a compa-ny’s activities and strategy. The theo-retical motivation behind implement-ing an ERP project is to increase effi-ciency, thereby reducing costs andincreasing profitability and customersatisfaction. In addition, there shouldbe increased efficiencies around thesupply chain, consolidation of infor-mation, and an overall businessimprovement, which gives those whouse ERP an advantage over their com-petitors.
According to Porter, a company’sERP project can be assessed by thelevel of improvement in terms of pro-ductivity and customer satisfaction.The analysis of the data presented byROI figures will clearly show thatERP systems provide a significantbenefit to the value chain, increasingcompetitive advantage within anindustry.
Companies like SAP and Oraclehave been leaders in creating valueefficiently and effectively by adaptingquickly to business changes for theirclients.
To better compete in the 21stCentury, dealers may want to considermore than just industry-specific ERPpackages. Like most owners whogrew up in this business, I have saw-dust in my veins. I love the indepen-dent lumber industry and want to seeall of us succeed.
– The former president of LumberJackBuilding Centers, Algonac, Mi., where hespent 22 years, Gordon Birgbauer is nowa lumber distribution consultant, as presi-dent of AIIS/MFP, Algonac. He can bereached at [email protected].
16 Building Products Digest January 2014 Building-Products.com
Producer branches outTargets custom orders, shippingONE YEAR AFTER being acquired by the owners of
Welco Lumber, Vancouver, B.C., SilvaStar ForestProducts, Bellingham, Wa., is expanding its business byintroducing new products and services.
“Many companies offer one or more of the same ser-vices we do, but none offer the same unique, completesolution,” says Mike Thelen, SilvaStar’s chief operatingofficer. “Our motto is: ‘Together, your product line com-bined with ours builds a world of possibilities.’”
Here’s how it works: The company produces its ownfascia, trim, siding, decking, patterns and furring strips inits 100,000-sq. ft. manufacturing plant. However, withannual production capacity of 200 million bd. ft., there’salso room to dry, mill and stain to customers’ specifica-tions. An additional 40,000-sq. ft. of additional coveredstorage keeps everything in great shape.
“Customers bring their raw material to our plant,” heexplains. “If it’s wet, we re-dry it in our kilns. We thenprocess their lumber to match their individual specifica-tions.”
COMPANY ProfileSilvaStar Forest Products
SILVASTAR’S plant produces a range of company-branded products,plus custom milling and staining to customers’ specifications.
A SIX-CAR RAIL SPUR on the property enables mixed loads for sub-stantial savings. (All photos courtesy of SilvaStar)
A six-railcar spur on the 30-acre property—which ispaved and fenced—simplifies delivery. “We offer a uniqueadvantage for our rail customers, allowing them to orderhighly mixed cars combining material from our inventorywith their custom milling and staining orders,” he says.
Adding product from nearby producers isn’t a problemeither. “Framing lumber from nearby sawmills can be usedto complete their orders,” he adds. “This allows purchasingflexibility and substantial savings.”
More than two-third’s of SilvaStar’s business is withtwo-step distributors, such as Boise Cascade, Boise, Id.“We currently supply 14 Boise locations fromWoodinville, Wa., to Pompano Beach, Fl.,” says Thelen.“We also supply custom-branded products to the bigboxes.”
Mike Bland, general manager of Boise CascadeBuilding Materials Distribution in Riverside, Ca., says thatBoise decided to partner with SilvaStar because “theyunderstand that customer loyalty is all about building long-term relationships. I would rate them right at the top.”
18 Building Products Digest January 2014 Building-Products.com
Same footprint, but aCinderella transformation
COMPETITIVE IntelligenceBy Carla Waldemar
GREG CLINE’S GOT HIS dreamjob—just ask him. He signed on
a year ago as retail merchandisingmanager for Bloedorn Lumber, head-quartered in Torrington, Wy., with 21stores and a truss plant in four west-ern states.
Joe Maya’s crazy about his job,too. He’s worked 17 years in theWorland, Wy., lumberyard he man-ages, which Bloedorn bought in 2000.
“I love merchandising,” swearsGreg, who recently masterminded thecomplete rehab of the Worland storeJoe runs. And you couldn’t pry Joehimself out of it with a forklift. “Thisis my hometown, where I grew up. Ilove working here,” Joe jubilates.And after the remodel, he loves iteven more: Sales are skyrocketing,and new-customer count is on the
its own. We’re the only lumberyard intown.”
But they don’t write off the chal-lenges. “Very strong competition”thrives here, according to Greg, who’sspotted an Ace, True Value, BigHorn, and big boxes looming downthe highway. “So, we saw a need todiversify, to update things.”
If you, too, are feeling that urgebut hesitate to undertake a hugeexpansion, take note: “remodel” does-n’t have to mean “expand.”Worland’s 10,000-sq. ft. footprintstayed the very same. And, challeng-ing as it was, the store never closedduring the top-to-bottom rehab.Customers not only took the upheavalin stride, they acted as cheerleaders,creating a buzz around town (a.k.a.free advertising) about the progress.
TOP-TO-BOTTOM remodel of Wyoming yard began on the outside, with new landscaping, signage and stylish color scheme.
uptick, too.Bloedorn, launched back in 1919
selling lumber and coal, is on track toremodel the majority of its locations,two stores at a time—some, likeWorland, drastically; others with amore subtle touch. The Torringtonand Buffalo locations, already com-pleted, each shifted focus in slightlydifferent directions—one toward theretail market, the other to the pro. Nocookie cutter in the grand design:“Each store is a little different,” saysGreg. So we’ll look at Worland,which celebrated its grand reopeningin late September.
What’s the town like? Let’s askJoe, who’s one of the 5,000 folks wholive here. First of all, “it’s not a bed-room community,” he laughs. “InWyoming, every little town is out on
Building-Products.com January 2014 Building Products Digest 19
“I started on the outside—I always do, where it’s mostvisible,” Greg explains. “We put in new lawn and planting,new paint (from an orangey-red color scheme to one ofmuted green—more stylish), added new signage. It wasright on a busy highway, so people took notice.
“Before, business was 80/20, focused on pros.Contractors had their own counter, back near the office,which (unfortunately) they couldn’t see from the frontdoor. Now they can spot it, plus there’s more to appeal tothe walk-ins. With the recession, we knew we couldn’t relyonly on the building trade, so we decided this was the timefor an update and a repositioning of the departments toattract the retail trade—especially those with a femaleappeal. Today, ladies tell us, ‘I like the way the store isorganized. Now I can come in with my husband.’” Thepaint department, Greg gives an example, used to be rightup front. Now, it’s halfway back, on the power aisle, sofolks can see it easily.
Same for contractors goods. “‘I never knew you hadfaucets,’ they tell me,” says Greg, “yet there’d been a 28-ft. aisle of them, where the pros first came in the store.They were right in front of them.” Wrong! Explains Greg,the master merchandiser, “You need a transition zone.When customers first come in, they need to get their bear-ings, decide where to head. They need space. So we creat-ed a foyer with tiled floor and an automatic door (used tobe swinging). And”—big deal—“we’ve added shoppingcarts. They’re used to grabbing carts in other stores, andit’s working here. They’re buying more, filling them up.”
Everyone—especially the ladies—likes the new look,too. Formerly the interior was lit by fluorescent tubeshanging on chains from a vaulted ceiling. (“We were heat-ing a lot of empty space.”) Now, there’s a new drop ceilingwith new insulation, drywall, paint and lights. Restrooms,offices and break rooms got upgrades, too.
During the months-long transition, gondolas had to beshifted from one side of the store to the other, and productsdropped in the power aisle to be sorted through—which tosave and which to sell off in the $1 bin. Several brand-newdepartments were added.
Planning was done with input ofstore management. “We spent a lot oftime working together,” Joe reports,“back and forth, exchanging ideas.Sometimes I couldn’t believe the newitems Greg would suggest—‘Not achance!’—but we went ahead withmany of them, and they’re doing very,very well.”
Not by accident. Greg had done hishomework, patrolling the aisles of thecompetition, counting the linear footagein their stores. “I did a market and siteanalysis, which spurred us to add wholenew categories, like RV accessories(lots of tourists along the highway),Dickies work wear, and outdoor camp-ing and cooking gear. We positionedthese new features all together in anarea of their own, and they’ve beenvery well-received. We plan to adver-tise them with circulars and with LadiesNight events.”
Those ladies are thrilled with thestore’s brand-new cabinet displays,Greg reports. “Talk about a wow factor!
Plus chandeliers and ceiling fans and new positioning ofwindows and doors.” Speaking of wow, the floor nowshowcases working fireplaces and pellet stove and a brand-new outdoor kitchen in the home décor area, complete withgrill and fridge. The lawn and garden department hastripled, including a garden tower and 17-ft.-by-35-ft.greenhouse nurturing live plants. Joe’s staff of 11 willexpand in spring to include a nursery-products expert. Anew cabinet specialist is already on board.
Bottom line: Bloedorn has become a destination store.“You don’t have to run to the boxes. Now it’s more in linewith what the d-i-yer expects from a retailer,” Greg allows.“We’ve incorporated items customers have been askingfor, and it’s greatly expanded our customer base—espe-cially females. We’ll be holding events like Powder PuffMechanics—mowers, weed cutters—and classes in can-ning and food preservation.”
Fine, but how about those pros? “Well, you know,”Greg laughs, “when change happens, it’s, ‘I can’t find it!’But then I hear, ‘I didn’t know you carried X.’ They wereso locked into their patterns that they never walked theother aisles.”
The night before the grand reopening, the store hosted acontractors’ night (wives—thrilled—were invited, too)with a catered barbecue dinner, demosand prizes. Then followed the publicreopening. “That day—wouldn’t youknow it?—was the first big snowfallof the year. We were worried, butthe store was full. Lots of new faces,and faces we hadn’t seen for a longtime, coming back to us. Salesare definitely up, and (unlikethe pro accounts) they’re pay-ing in cash!”
Carla [email protected]
KICKED OFF with a recent grand reopening celebration, the makeover has turned Bloedorn Lumberinto a destination store.
20 Building Products Digest January 2014 Building-Products.com
have we gone over this?) They justmay not have the motor to deliver onyour expectations.
Banging the TableMany managers I work with have
salespeople working for them whoare “just good enough not to fire.”They have been haranguing (manag-ing?) these same salespeople foryears. Who’s lazy? The sales team orthe sales manager?
A dirty little secret of sales man-agement is that it is a pain in theneck (read: difficult) to hire and trainnew salespeople. So it’s easier to try
to get growth from the team in front of you.Most managers have some very good salespeople who
will never be great. Are they profitable? Yes, more prof-itable than most, but all their manager can see is what theycould be doing (if only), not the great work (especially vis-à-vis their motor) they are doing.
Expecting A+ results from a B+ salesperson is the sameas a salesperson wanting A+ results from a B+ accountbase! SALES GROWTH IS YOUR JOB. Banging your fiston the table and saying, “Sell more!” will not get it done.
Maximize & GrowSet a profitability goal for all salespeople. Make it
aggressive. Don’t give in to mediocrity, but be realistic.Once your individual salespeople hit that number, workwith them (give them RST Leadership sales training, forexample) to get better, but when you get to maximizationwith your current team, hire more salespeople.
This strategy will work with theexperienced yet underperforming sales-person who is holding your growthhostage. Like the development in a citythat must grow around a hard-nosednon-seller, build around him.
When your team knows thatyou are committed to growth, thatyou will hire new salespeople,they will work harder for you.New blood will do what naggingnever will—grow sales.
OLSEN On SalesBy James Olsen
James OlsenReality Sales Training
(503) 544-3572 [email protected]
AFRIEND ONCE TOLD me, “Ifyou’re crazy and poor, you’re
called crazy. If you’re crazy and rich,you’re called eccentric.” Let’s justsay, if they had been born rich, myparents would have been eccentric.
My mother read John Steinbeck’sGrapes of Wrath about the DustBowl migration of millions duringthe Depression from Oklahoma toCalifornia looking for work. A pow-erful novel, the book won theNational Book Award, a Pulitzer, theNobel Prize, and drove my mother tothink that it would be a good for ourfamily to pick fruit in the summer,like migrant workers!
To my father, an easy-going dreamer and Englishteacher, in that order, it must have seemed like a great idea,because we spent every summer from age 5 to 14 pickingfruit. School would get out on the 6th of June and on the10th we were gone with the wind (really just an old FordFairlane wagon) like a band of fruit-picking gypsies fortwo-and-a-half months.
No baseball, golf or summer tomfoolery for the Olsenboys, no—just Grapes of Wrath.
Motor SizeI have a twin brother, David. We picked fruit together
for nine summers. Cherries, apples, peaches, strawberries,plums and pears. In nine summers, I never out-picked him.
David has the focus, drive and tenacity to finish big andsmall jobs. He is the senior v.p. of a Fortune 500 company.He is a machine with no off switch. His motor for work isbigger than mine. We have the same DNA, but the power isdispersed differently. (I sing and dance better, but no one ispaying for that.)
You may have some David Olsens working for you.Congratulations, you’ve won the salesman’s lottery. Treatthem great; they are rare.
Realistically, you probably have more James Olsentypes (not Superman, just his pal, cub reporter JimmyOlsen) working for you.
Asking a player to make a play he cannot make and thengetting angry with him for not making it is bad coaching,but it happens all the time.
It happens on sales teams, too. Any time you hear your-self saying, “If only he would _____ more, he would sellmore” or “All she has to do is _____ and she would sellmore,” stop. You are not smarter than your sales team.They know what you are telling them. (How many times
The size of the motor
22 Building Products Digest January 2014 Building-Products.com
Sasser Lumber Co., La Grange, N.C., has placed its80-year-old retail and wholesale businesses up for sale.
Salem True Value Hardware, Salem, In., switchedco-ops after 45 years, is remodeling, and has become AceHardware of Salem, as of Jan. 2.
Avery True Value Hardware, Newland, N.C., hasbeen sold after 51 years of Banner family ownership.
Ace Hardware franchisee Chad Homan will open anew store next month in Faulkton, S.D.
Swartz Hardware, Nonantum, Ma., has been acquiredby Senneth Berrier after 123 years of Swartz family owner-ship.
Ace Hardware, Monroe, Ct., is closing.
Pro Hardware, New Paris, In., has been purchased byTim Spurlock from Fritz and Norman Weaver, who after 32years of ownership are retiring to Arizona.
True Value, Columbus, Ks., has been acquired byJason and Lisa Hulvey, who will reopen by spring, once a fullremodel is complete.
Contractor Randy Coble is overseeing the renovation andwill serve as manager once the doors open.
Ace Hardware opened a new store in Hampton, Va.
Bunnell Hardware, Clarks Summit, Pa., closed after103 years and auctioned off remaining inventory Dec. 28.
Carl’s True Value, Torrington, Ct., was seriously dam-aged in an early morning fire Dec. 11.
E&H Hardware Co., Wooster, Oh., this spring willopen its Ace Hardware store, in Avon Lake, Oh.
Anniversaries: Economy Lumber Co., Tulsa, Ok.,80th … Pearson’s Lumber, Lexington, Ok., 75th …Trendel Lumber Co., Ottawa, Ks., 15th …
DEALER Briefs Cedar Creek Opening in AtlantaCedar Creek, Oklahoma City, Ok., anticipates an April 1
opening for a new distribution center in Atlanta, Ga., itssixteenth.
“This expansion into one of the nation’s top housingmarkets underscores our ongoing commitment to growingCedar Creek’s geographic footprint,” said c.e.o. BillAdams. “Although we are currently servicing Atlanta fromBirmingham, Al., our new location will assure that we pro-vide the best possible service and localized product mix toour Atlanta-area customers.”
D. Wayne Trousdale, c.o.o., added, “We found a greatlocation, and we’re in the process of assembling an excel-lent local team experienced in the Atlanta and greaterGeorgia markets.”
U.S. LBM Adds Pennsylvania YardsU.S. LBM Holdings, Green Bay, Wi., has acquired two-
unit Musselman Lumber, New Holland, Pa., from GalenEby, Joe Good, and Bob Quinlivan.
The 102-year-old dealer had yards in New Holland andEphrata, Pa., which will continue to operate under theMusselman name.
Suburban Detroit Chain Drops 2 AcesVillage Ace Home & Hardware is closing in Bloomfield
Hills, Mi., this month and in Rochester, Mi., next month,reducing the chain to three locations.
The stores are currently liquidating. Owner Mark Elmerblamed the closures on an inability to renegotiate the leaseswith the landlords.
GAF Relocating HeadquartersGAF, North America’s largest roofing manufacturer,
will relocate its corporate headquarters—and 600-personstaff—to Parsippany, N.J., once renovations on its newoffices are completed.
For more than 30 years, GAF has been based at a 99-acre campus in Wayne, N.J., sharing space with its affiliat-ed companies. In 2011, GAF sold International SpecialtyProducts to Ashland Inc., which announced last year that itwould relocate its employees from the GAF campus toother locations in New Jersey.
877-287-4406www.claymark.com
800-752-0121www.wtrask.com
Distributed By Manufactured By
24 Building Products Digest January 2014 Building-Products.com
SUPPLIER BriefsCanfor Southern Pine will
invest $8 million to expand its SYPsawmill in Darlington, S.C., and will adda second shift by the fall.
Spearfish Forest Products,Spearfish, S.D., suffered damage to aplaner building and adjacent shavingsbin in a Dec. 2 fire.
ECMD, North Wilkesboro, N.C.,purchased the 132,000-sq. ft. formerLifetime Doors facility in Hearne,Tx., to renovate into its new Texas DC,replacing a leased Houston facility.
Public Supply, Oklahoma City,Ok., is liquidating the last of its door andwindow inventory by appointment,months after the 67-year-old manufac-turer/distributor closed and was placedin receivership.
Prime-Line Inc., Malvern, Ar., willbuild a larger, $6.7-million fiberboardplant to meet increased demand.
Green Meadow Lumber ,Westfield, Ma., escaped a Dec. 17sawmill fire with minor damage.
Richard White Wood Pro-ducts relocated its log yard and officesto a new site in Morehead, Ky., to becloser to its hardwood timber suppliers.The former location is for sale or lease.
Headwaters Inc., S. Jordan, Ut.,agreed to acquire an 80% share inEntegra roofing manufacturer RoofTile Inc., Okeechobee, Fl.
Russin Lumber, Montgomery,N.Y., is now distributing CaliforniaRedwood Co. redwood products in13 Northeastern and mid-Atlantic states,starting with Clear All Heart, All Heart B,and Classic Heart lumber.
Mid-State Lumber Corp.’sDCs in Branchburg, N.J.; Kingston, Pa.,and Warwick, N.Y., now distribute Fair-way Building Products railings inNew England and the mid-Atlantic.
Falls City Lumber, Louisville,Ky., is now distributing IntegrityComposites’ DuraLife decking andrailing in Ky., Oh., In., and W.V., from itsDCs in Louisville and Cincinnati, Oh.
Huttig Building Products, St.Louis, Mo., has begun trading its shareson the NASDAQ exchange under theticker symbol “HBP.”
Lumberyard Opens in IowaBanowetz Lumber Co., Anamosa,
Ia., opened last month at the formersite of Anamosa Building Supply,specializing in dimensional lumber,house packages, shingles, siding andhardware.
Owner Jeff Banowetz, a contrac-tor, is surprised the previous companyclosed last spring. “This community,with its growth, should be able to sup-port a lumberyard,” he said.
He’s currently leasing the site, buthopes to purchase property to build amore modern facility.
MeadWestvaco Sells Off Lastof Its U.S. Timberlands
MeadWestvaco Corp., Richmond,Va., has completed the sale of all ofits U.S. forestlands to Plum CreekTimber Co., Seattle, Wa.
The $1.1-billion deal includes501,000 acres of Southeastern timber-land, associated mineral and windassets, and interests in 109,000 acresof rural and development lands in theCharleston, S.C., region.
MeadWestvaco continues to ownand manage 135,000 acres of forest-land in Brazil.
A&M Picks Up Richmond DCA&M Supply Corp., Pinellas Park,
Fl., has acquired Atlantic Plywood’sRichmond Va., distribution center, asits twelfth location.
Atlantic Plywood retains its 10branches in the Northeast. “Atlantic
Plywood will continue to service itscore customer base from New Jerseyto Maine,” said president Paul Vella.
The acquisition brings A&Madded expertise in cabinet supply dis-tribution, along with Richmond’sHPL laminate manufacturing busi-ness.
“I am extremely excited about theopportunities to increase our servicearea in Virginia and to expand themanufacturing capabilities of theRichmond location into theSoutheastern region of A&MSupply,” said president and c.e.o.Raymond Prozzillo.
Gossen Expands in the EastGossen Corp., Milwaukee, Wi.,
has signed on several new distributorsand sales agents to expand the reachof its cellular PVC products.
Princeton Forest Products, Orange,Ma., is now distributing the full lineof Gossen decking, porchboard, exte-rior mouldings, trimboards and sheetsin New England and the mid-Atlantic.
Genesee Reserve Supply’s distrib-ution centers in Buffalo andRochester, N.Y., are now carryingGossen’s Passport and Trailwaysdecking and porch products in west-ern New York. Reserve Supply,Syracuse, N.Y., is stocking the samelines for central New York.
Windward Sales, St. Augustine,Fl., is now repping Gossen productsthroughout the East Coast andMidwest.
Building-Products.com January 2014 Building Products Digest 25
Denny Meillier has retired after 25years as president of AlexanderLumber, Owatonna, Mn. He is suc-ceeded by his son, Josh Meillier.
Patrick Curtis, ex-Seaboard Interna-tional, was named v.p. of sales forConcannon Lumber’s SwindemanTrading division, Manchester, N.H.
John Edwards, ex-InternationalBeam, has been named EWP mgr.for Cedar Creek, Statesville, N.C.
Craig Mitchell has rejoined the salesteam at Linworth Lumber, Worth-ington, Oh.
John Fijalkowski was named pur-chasing agent at Mid-State Lumber,Branchburg, N.J., responsible forwestern red cedar, Blue Star meran-ti, fir and Tamko products. TravisRisser, ex-Babcock Lumber, isnew as territory mgr. for LancasterCounty and surrounding areas.Chris Saidla is now territory mgr.for New England. Lyle Tompkins,ex-Russin Lumber, is territory mgr.for the Albany, N.Y., area.
Chad Naish, ex-Birmingham Interna-tional Forest Products, is a newsouthern pine trader at StringfellowLumber, Irondale, Al.
Frank Parrott, Matheus Lumber, SanMarcos, Tx., has retired after 30+years in the industry.
Brian Callahan, ex-ProBuild, is newto outside sales with ReVosWelTruss & Lumber, Marion, Ia.
David Quintana has been promotedto store mgr. at McCoy’s BuildingSupply, El Paso, Tx.
Jeff Brazezicke, ex-Blue RidgeLumber, is new to outside sales andKevan Phares, ex-AssociatedMaterials, is a new engineered lum-ber specialist at Somerville LumberCo., Bridgewater, N.J.
Dan Smith, ex-Lakeside QualityBuilding Products, has joined thetrimboard sales team at Versatex,Pittsburgh, Pa.
Scott Berchiatti is new to HollandSouthwest International, Houston,Tx., as business development mgr.
Steve Couch, ex-Carter Lumber, isnow district mgr. for 84 Lumber,Muncie, In. Ben Ignatowicz is anew mgr. trainee in York, S.C.
Susan Susnowy is the new mgr. ofcustomer service for HoustonFence Co., Stafford, Tx.
Gina Cali, ex-Allied Building Pro-ducts, is now key account mgr. inmetro N.Y. for Kemper SystemAmerica, West Seneca, N.Y.
MOVERS & ShakersFrank Carroll, ex-Knaack, is now
general merchandise mgr. for AceHardware Corp., Oak Brook, Il.
David D. Bogue, ex-Home Depot, isnew to truss design and sales atTimber Roots Truss Co., SiouxFalls, S.D.
Gary Hartman has been promoted todirector of marketing & new busi-ness development at Chelsea Build-ing Products, Oakmont, Pa. BradFello is now quality assurance mgr.
Mike Jost has been named v.p.-opera-tions for ABC Supply, Beloit, Wi.Kathy Hendricks is now executivedirector of customer connectivity.Tony Vaden succeeds her as chiefinformation officer. Chris Slusaris now corporate controller.
Barbara Anthony and Joseph Lalliwere appointed co-presidents ofCreative Millwork, Ashtabula, Oh.
Bruce Bunn has joined BW CreativeRailings, Maple Ridge, B.C., asdirector of sales. Frank Girard isnow senior financial mgr., and PhilJones, controller. Kalvin Eden hasbeen promoted to sales mgr. forBW Vista Railing Systems.
Rob Schmiedel was appointed nation-
al sales mgr. for Do it Best Corp.,Fort Wayne, In. Scott Orman isnow national logistics mgr.
Jim Whitton, Hunter Panels, Port-land, Me., was elected chairman ofthe Polyisocyanurate InsulationManufacturers Association, suc-ceeding Dr. Chris Griffin, JohnsManville, Denver, Co.
John Weinstein is now v.p. of sales &marketing for Xylem Group,Roswell, Ga.
Danny White, T.R. Miller Mill Co.,Brewton, Al., was newly appointedto the Softwood Lumber Board byU.S. Agriculture Secretary TomVilsack, along with Charles W.Roady, F.H. Stoltze Land &Lumber, Columbia Falls, Mt., andDon Kayne, Canfor, Vancouver,B.C. Reappointed to three moreyears were Aubra Anthony Jr.,Anthony Forest Products, ElDorado, Ar.; Alden J. Robbins,Robbins Lumber, Searsmont, Me.,and Francisco Figueroa, AraucoUSA, Atlanta, Ga.
Art Burne is manning the employeecafeteria at Mungus-Fungus ForestProducts, Climax, Nv., report own-ers Hugh Mungus and FreddyFungus.
26 Building Products Digest January 2014 Building-Products.com
REGARDLESS OF OUR PLACE in the lumber supplychain—logger, mill, remanufacturer, wholesaler,
retailer—the immediate future of our businesses will bedetermined by many forces beyond our control and sever-al very much in our grasp.
The questions of growth and profitability will beimpacted by the very small (the mountain pine beetle)and the very large (the urbanization policies of theChinese government), and much in between (the abilityof a young family to buy a new home, or the changing
THINKING AheadBy Gary Vitale, President & C.e.o., North American Wholesale Lumber Association
credit policies of business lenders). With so many factorsin play, what lies ahead for the lumber companies thathave persevered and survived the devastating impacts ofthe great recession and the housing collapse?
Real recovery has been evident in recent months andthere are many positive trends, and we are guardedlyoptimistic as we look at 2014 and beyond. What is clearis that despite generally rosy outlooks for lumber, noteveryone in the industry will emerge from the recessionand recovery as a winner.
There are many challenges ahead: dealing with creditissues, identifying trustworthy partners, introducing inno-vative products and practices, and understanding interna-tional impacts. Chief among the realities we face is thelikelihood that the lumber supply cannot keep pace withgrowing demand.
Constraints on the supply sideWhile there are varied predictions on how much the
lumber supply will tighten, there is a strong consensusamong industry experts that supply will not be able tokeep pace with demand increases in the U.S. and China—beginning this year and continuing over perhaps the nextfive years.
To dig deeper into this issue, I talked recently withHenry Spelter, a partner and forecaster with ForestEconomic Advisors. He predicts that by 2015 or 2016demand will double to 1.5 billion board feet—twice thecurrent demand—a level that will come up against majorsupply constraints.
The biggest constraint is the pine beetle epidemic. Itis reaching its climax in British Columbia (B.C.), but the
Sizing upthe supply side
Outlooks and observations for 2014
Building-Products.com January 2014 Building Products Digest 27
wood that has been infested is less useful and a goodchunk of supply will be taken out in coming harvests. In2013, demand was up 5% to 10%, but B.C.’s harvest wasthe same as the previous year and its ability to respond toincreasing demand is very low. This is likely to reduceB.C.’s role in the supply mix.
Mill closures due to recession are a factor, but not anenormous one, because much of their output has beenreplaced by more production at other mills. Still, therehas been a loss of about 7 billion board feet in productioncapacity—about 10%.
A third supply constraint is government policies,which are especially limiting in the U.S. PacificNorthwest. These include limitation of timber harvestsfrom public lands, lumber trade restrictions, and log
export duties and restrictions. Spelter says the high point of production, in 2004-
2005, was 65 to 70 billion board feet a year. Today, thereis 50-55 billion board feet of capacity being used of thenominal capacity of 63 billion board feet (effective orreal usable capacity is less because some mills are moth-balled).
Supply limitations come at a time when U.S. housingstarts are trending upward and Chinese demand continues
to grow as China moves to urbanize its population. Oneresult is likely to be higher prices for wood. If demandbumps against constraints, log prices will go up. Nowabout $400 per 1,000 bd. ft., the price could get to $500or even $600 or $700. If so, alternative building productssuch as steel, plastic and composites will become moreattractive building products.
What to doKeep your suppliers close. Regardless of the exact
levels or causes of the supply shortage, it is increasinglyimportant for lumber wholesalers to solidify relationshipswith your suppliers and reach out to new possible sourcesbefore we are desperate. The competition will intensify incoming months, and those who are well positioned withsuppliers will have an advantage.
Listen to the sound of the future. I invite you to joinme for what will be a very important 2014 NAWLALeadership Summit, March 30-April 1, at CallawayGardens, near Atlanta. It will be a timely gathering forall of us, as we face these challenges. Seven industryleaders have agreed to speak to us about the future—about outlooks in various regions, U.S. and internationaldevelopments, and navigating changes in the supplychain.
The speakers are Don Kayne, president/c.e.o. ofCanfor; Marc Brinkmeyer, chairman of Idaho ForestGroup; Jack Koraleski, president/c.e.o. of Union Pacific;Kimmo Jarvinen, secretary general of the EuropeanOrganization of the Sawmill Industry; Jon Biotti, manag-ing director of Charlesbank Partners; Peter Alexander,c.e.o. of BMC, and Curt Stevens, c.e.o. of LouisianaPacific. I urge you to consider attending this Summit aswe begin a new phase of lumber industry recovery. Formore information, go to www.nawla.org.
Position yourself to compete. In this new environ-ment, securing good deals with suppliers will becomevery competitive. Also, anticipate competition from engi-neered woods, plastics, vinyl decking and composites,which are likely to become a large part of the market. Asone insider said, “We’re going to have to stay alert andact decisively to get our share.”
Caution: sharp elbows may prevail.
A Special Series fromNorth AmericanWholesale Lumber Association
28 Building Products Digest January 2014 Building-Products.com
tial impact of forest supplies on timberprices across the United States in theshort and long-term as housing mar-kets recover and forest harvestingincreases?
In evaluating the potential for soft-wood grade oversupplies or con-straints, Forisk uses the “removalyear” metric—accessible inventorydivided by removals—to identify alocal market with a potential supplyimbalance. The removal year esti-mates how many years it would taketo deplete standing inventories, givena set level of removals per year. Forexample, if we assume one extrayear’s worth of standing inventory, itwould take four years of removals at25% above the long-term average todeplete the backlog.
In the Pacific Northwest, estimatedchanges in operable inventories on pri-vate lands have been modest, withCoastal Oregon and Washington aver-aging 16 years of softwood graderemovals on the stump on privatelands alone.
The results in the Northwestchange slowly for two reasons. First,the U.S. Forest Service analyzes one-tenth of Oregon and Washington’sforests each year. Therefore, we arecontinually looking at an average 10-year forest. Second, Northwest mar-kets have supplemented domesticdowntime with increased export vol-
THE U.S HAS more softwood treesthan you can shake a stick at.
Analysis of U.S. Forest Service dataindicates the South has nearly 3.5 bil-lion tons of standing pine grade andpulpwood inventory on private, opera-ble timberlands. That’s about 140 mil-lion truckloads. Coastal Oregon andWashington, a region with 103 opensoftwood mills, has over 68 billion bd.ft. (over 400 million tons) of standingsoftwood grade inventory on private-ly-owned timberlands. And thesenumbers represent but a fraction oftotal U.S. forest stocks.
Forisk conducts research on theimpact of local supply events (such asnatural disasters) and trends (such asincreased forest growth rates or plan-tation acreages) on timber markets toforecast timber and delivered log ship-ments. For the near-term, states withthe most severe pine grade oversup-plies show how stumpage pricesbecome less sensitive to increases indemand in those states for which aquantitative basis exists for significantexcess inventories.
Alternately, analysis of coastalmarkets in the Pacific Northwest indi-cates less quantitative evidence fordampened log prices in a region buf-feted by robust export demand.
Forest Supplies & DemandWhat do we think about the poten-
U.S. timber suppliesand rising demandfor softwood lumber
SPECIAL FocusWestern WoodsBy Brooks Mendell, Forisk Consulting
umes, reducing the impact on net har-vests. We note that the total removalyears in the Northwest are higherwhen operating public forests areincluded, but we focus on privatelands to better reflect harvest respons-es to changes in market prices.
Log exports are important to fore-casting models for the PacificNorthwest because exports, whilevolatile and inconsistent, influencedomestic sawlog prices. Export pric-ing ripples inward from the Coast tothe Eastern Washington and Inlandmarkets. In addition, log exports aresubject to substitution across products,species and size classes. This is espe-cially critical in Washington, wherethe ratio of domestic-to-exportdemand is 5:1. For Coastal Oregon,this ratio is closer to 50:1.
On the other hand, analysis of tim-ber markets across the South indicatesthat, in the short term, excess sawtim-ber volumes can delay the strengthen-ing of pine grade prices. For the U.S.South, not including outliers associat-ed with lower-volume Tennessee andVirginia, states historically average 18years of pine grade removals on thestump on private lands. Recent dataindicates inventories for these samestates approaching 31 years of pinegrade removals on the stump. Thelargest gains have occurred inGeorgia, Mississippi and Arkansas.
Building-Products.com January 2014 Building Products Digest 29
While the Northwest benefits fromlog exports, forecasts for the Southenjoy an increasing share of U.S. soft-wood lumber production. Current andforward-looking views on U.S. lumberproduction by region must account fortwo shifts. One is the increased U.S.market share of domestic lumber atthe expense of Canadian imports. TheU.S. share has risen from 61% in 2004to 72% for 2013 based on year-to-dateWWPA data.
Two is the U.S. South’s increasedmarket share of domestic softwoodlumber production relative to thePacific Northwest. The South grew itsshare of domestic production from34% in 1983 through 1993 to 46% in1993 through 2003. The 2008 to 2012five-year average was 50%.
Long term, we assume that theSouth will grow its share of U.S. lum-ber production as the demand forhousing returns to trend. This assump-tion is supported by the location ofcapital investments made andannounced by forest industry firms inthe United States.
Forward-looking projections high-light differing potential impacts of therecent economic recession on futureforest supplies in the South andPacific Northwest. Reduced harvest-ing activities over the past five yearsresulted in fewer acres of replantedtrees.
For the near-term, states with themost severe pine grade oversuppliescontinue to show material decreases intheir price-to-demand relationshipsover the past five years. In otherwords, stumpage prices became lesssensitive to increases in demand inthose states for which a quantitativebasis exists for significant excessinventories. This includes states, forexample, such as Georgia, Mississippiand Arkansas. Alternately, coastalOregon and Washington have less evi-dence of supply-driven price effects.
While these estimates do not speci-fy the situation in any given wood bas-ket or for any given timberland prop-erty, they do support the evidence thatsupplies have affected stumpage mar-kets selectively.
– Brooks Mendell, Ph.D., is presidentand v.p.-research of Forisk Consulting,Athens, Ga., providing research and edu-cational services to executives and ana-lysts making decisions related to timberREITs, timberlands, and wood-using ener-gy and manufacturing facilities. He can bereached at (770) 725-8447 [email protected].
30 Building Products Digest January 2014 Building-Products.com
U.S. LUMBER DEMAND strengthened significantly in late2012/early 2013 as home construction showed double-
digit growth. While home building slowed late in the year, residential
repair and remodeling—the largest lumber market by vol-ume—picked up the slack. R&R construction spending fin-ished the year up an estimated 9% compared to 2012.Higher interest rates coupled with continued slow econom-ic growth is expected to result in modest but sustainablegains in 2014.
Responding to increased demand, 2013 U.S. lumberproduction increased an estimated 6% to 39.32 billion bd.ft., compared to 36.54 billion bd. ft. in 2012, according toWWPA. Lumber production in the West is expected toclimb to 13.34 billion bd. ft. for 2013 and is projected to be
Modest expansion aheadfor U.S. lumber markets
SPECIAL FocusWestern Woods
13.97 billion bd. ft. in 2014.Lumber and log exports both saw gains. Lumber
exports to the Pacific Rim should top 2.2 million cubicmeters in 2013, with overall lumber exports finishing about9% higher.
Log exports to China, predominantly Douglas fir andhemlock from the West Coast, are expected to top 6 mil-lion cubic meters in 2013—a 45% increase year-over-year.Exports to Japan are also up by double digits. Log exportsto all countries are expected to top 11.9 million cubicmeters for the year, up 24%. In 2014, log and lumberexports should ease as domestic lumber prices rise andcompetition for logs increases.
WWPA Annual Meeting toMark 50 Years of Service
Western Wood Products Association will celebrate50 years of lumber industry service at the 2014 annualmeeting March 2-4 in Portland, Or.
More than 200 industry professionals are expectedto attend the three-day gathering, which will featurecommittee meetings, awards, receptions, lumber andhousing forecasts, and events to commemorateWWPA’s 50th anniversary.
The annual meeting will kick off with the industrywelcome reception March 2. WWPA president KevinBinam will provide the association’s lumber outlookthrough 2016 at a forecast breakfast. WWPA commit-tee meetings will tackle such industry issues as lumberdesign values, grade requirements, and phytosanitaryregulations for lumber exports. The afternoon featuresan industry forum on a range of industry issues thatimpact western lumber producers and their customers.
Among this year’s guest presenters will be BrooksC. Mendell, Ph.D., Forisk Consulting, providing anassessment of U.S. timber supply constraints on pro-ducers and their influence on western lumber markets.The nation’s housing market and consumer demandfor repair and remodeling will be covered by econo-mist Jonathan Smoke. The day will close with thechairman’s reception, offering opportunities to net-work with other industry professionals.
The annual meeting is open to all industry profes-sionals, including retailers, wholesalers and manufac-turers. Visit www.wwpa.org for more details.
Building-Products.com January 2014 Building Products Digest 31
32 Building Products Digest January 2014 Building-Products.com
Standard Committee board of reviewat this writing. It is anticipated theboard of review will consider the sub-mission at their meeting later thismonth.
SPF is a U.S. commercial speciescombination similar to the CanadianSPF combination. The growth range
PRELIMINARY TEST DATA analysis ofSpruce-Pine-Fir (South) lumber
samples from the western mills indi-cates no change to SPF’s lumberdesign values is needed.
A report on SPF by the cooperat-ing agencies is being finalized forsubmission to the American Lumber
SPF testing confirmspublished design values
SPECIAL FocusWestern Woods
of the species included in the groupcovers the western lumber producingregion through the Great Lakes statesand extends into New England.
Lumber samples for the testingprogram in the West were taken frommills producing 2x4 lumber inEngelmann spruce, lodgepole pine,
PACIFIC LUMBER Inspection Bureau’s Jeff Fantozzi (right) checks the percentage of summer wood in a No. 2 2x4 SPF sample, as American LumberStandard Committee’s John McDaniel observes the testing procedures.
Building-Products.com January 2014 Building Products Digest 33
and Sitka spruce. The testing for the western lumber
sample was conducted by WesternWood Products Association in coop-eration with other western lumberagencies. Northeast LumberManufacturers Association had previ-ously conducted testing for theNortheast SPF production region andthe Northern Softwood LumberBureau completed testing for theGreat Lakes area earlier this year.
The published lumber design val-ues are based on the in-grade lumbertesting program. The testing plan wasapproved by the ALSC board ofreview. The plan required destructivetesting of lumber samples in bendingof SPF No. 2 2x4.
The preliminary data comparisonto the SPF properties established in
WWPA’s Russ Tuvey measures the mechani-cal properties of a No. 2 SPF 2x4 at the asso-ciation’s testing facility in Vancouver, Wa.
the original in-grade testing programindicates no change is required to thecurrently published design values.The monitoring program affirms cur-rent uses and building code recogni-tion. The recognized span data for thespecies group will also remain thesame. Had the data indicated a shift inproperties, the test findings wouldhave reviewed by the cooperatingagencies’ memberships and appropri-ate actions taken.
The coordinating western lumberagencies, including Pacific LumberInspection Bureau, Redwood
Inspection Service, Timber ProductsInspection, West Coast LumberInspection Bureau, and WesternWood Products Association, havebeen working together since early2011 on the testing program to moni-tor western lumber design values.
Hem-fir will be sampled and testedin 2014. The testing of westernspecies lumber is conducted periodi-cally to monitor for changes and toallow for timely actions to be taken, ifneeded, to support western lumberproducts.
34 Building Products Digest January 2014 Building-Products.com
number one position for softwoodexports after dropping back to fourthplace in 2012, behind Canada, Mexicoand Japan—markets that are steady orslowly growing.
Regional markets estimates in 2013for U.S. softwoods include theCaribbean at $150 million, SoutheastAsia at $50 million, and the EuropeanUnion falling to $18 million. Upward-moving markets—such as South Asia,including India and Pakistan, and theSouth Pacific, including Australia andthe French Pacific Islands—combinefor another $60 million in exports andCentral and South America combinefor over $12 million in shipments, upfrom 9 million in 2012.
Western species continue to havethe major share of the internationalmarkets. Fir has climbed from $58million in 2005 to $295 million (33%of all softwood export) in 2013.Hemlock has climbed from $11 mil-lion in 2005 to $161 million in 2011,but dropped in 2013 to $105 million,mostly from China. Ponderosa pine
THE INTERNATIONAL marketplacefor U.S.-produced softwood lum-
ber continues to be a small but steadydestination for western softwoods,especially in Pacific Rim countries.The market fell back a bit in 2012, butrecovered with the return of China as amajor buyer of U.S. softwoods in2013. Exports for 2013 should finish20% ahead of 2012 at more than $1.15billion and 1.4 billion bd. ft.—a possi-ble new near-term record.
China reentered the market in a bigway, pushing it to the number one spotwith an estimated $223 million invalue. Japan continued to improvewith an estimated $166 million invalue and 173 million bd. ft. receivedin 2011. Two other $100-million mar-kets were Mexico and Canada, whichincludes re-exports overseas.
The international markets cooled in2012 and were slow to start up againin 2013. Exports picked up during thesecond half of 2013 and are up from2012 and near the record levels of2011. Last year, China regained the
Steady increases forwestern softwood exports
SPECIAL FocusWestern WoodsBy Craig Larsen, Softwood Lumber Export Council
has maintained a steady market atabout $32 million in 2011, but up to$40 million in 2013.
MarketsIn the worldwide lumber market,
U.S. softwood producers are still smallsuppliers in international softwoodmarkets. Europe, Canada, Chile, NewZealand, and Russia are the majorexporting regions or countries for soft-wood lumber products.
International markets requirementsand product uses vary widely byspecies, sizes, grade requirements, andend use of the materials. Traditionalstructural species, such as fir and hem-lock, are found in many non-structuralproducts. Lower grades of all species,of limited value in structural uses, finda home in crating, pallets and packag-ing. They are used in many reman andgluing facilities, in parts of the worldwith much lower labor rates, for furni-ture and millwork components.
Wood frame residential construc-tion is mostly limited to NorthAmerica, Japan and Oceana. Even inthose markets, the use of NorthAmerican framing systems that incor-porate 38mm x 89mm (2x4) structuralmembers is limited to the U.S.,Canada and a small segment in Japan.
Japan is the second largest woodframe building in the world, but of thenearly 540,000 wood frame units inJapan this year, only 108,000 were2x4 based. The vast majority were tra-ditional Japanese metric post andbeam timber construction using metricsizes. Structural framing sizes inAustralia and New Zealand use 35mmand 45mm by 90mm and 100mmsizes. U.S. softwood producers suc-cessful in these markets are providingmetric sized lumber to compete withother imported products, mainly fromEurope and Canada.
INTERNATIONAL BUYERS gave U.S. species a hard look at the American Softwoods booth at the2013 Birmingham Timber Expo in Birmingham, U.K.
Building-Products.com January 2014 Building Products Digest 35
International Wood UsesMost U.S. softwood exports are for
non-structural uses. Interior applica-tions, such as doors, windows, frames,mouldings, flooring and paneling, area prime destination for both pine andfir species. Furniture parts and gluedpanels are also major uses of softwoodlumber. Western species, such asDouglas fir and hemlock, in clear andother upper grades are prized inEurope for window and door parts andframes. Ponderosa and other westernpines are used in rustic furniture, andfor upholstery frames in Mexico,China and Vietnam. U.S. producerssell both metric and imperial sizes intothese markets, since much of the stockis ripped and resawn to provide “fin-ished” metric sizes for local markets.
A large portion of exported lowergrades are used in concrete formingfor form walls, wailers and supportposts. Much of the worldwide struc-tural construction is based on the useof concrete, creating large demand forformwork materials at all levels. Somemarkets require structurally gradedmaterials, but otheres see wood as asingle-use material and aim for a cost-competitive, disposable supply, suchas for fuel or local d-i-y projects.
Western Species MarketsThe Pacific Rim is the leading mar-
ket for western species, with China thetop destination in 2013, after droppingback in 2012 behind Japan. China hasgrown by a factor of 10. In 2005,exports to China were $23 million(33,072,000 bd. ft.), rising to $245million in 2011. In 2013, however,China jumped 53%, to an estimated$236 million. Hemlock was the topU.S. species imported in 2011 at $105million; it took the big hit in 2012 andrecovered in 2013 to $79 million.Douglas fir was $37 million in 2011,and increased to $53 million in 2013.
Japan is the major export marketfor U.S.-produced Douglas fir, import-ing $137 million, which was 50% ofall Douglas fir exported in 2013,increasing to an estimated $160 mil-lion this year and up to 53%. The vastmajority of DF is in metric sizes andlengths for post and beam construc-tion. Hemlock/hem-fir was a distantsecond at $6 million. Other notablespecies include redwood, western redcedar, yellow cedar, and ponderosapine. Overall exports are on track toincrease by more than 21% over 2013.
Mexico was the fourth largest mar-ket for western species in 2013, taking
in a market value of $149 million–upfrom $126 million in 2011. Mexico isa low-grade pine market, with pon-derosa pine the top species imported,behind “other softwoods.” Usesinclude furniture components, con-crete forming, pallets, crating andmillwork. Douglas fir is also importedfor some structural applications alongthe border. The major competition isradiata pine from Chile.
The Softwood Export Council isthe U.S. western softwood link tointernational markets and marketingactivities. The SEC and its memberorganizations, grading and state agen-cies, and trade associations provide
marketing programs, including tradeshows, trade missions, market sourc-ing, design and usage info in nativelanguages. A special SEC programhelps put U.S. companies in directcontact with foreign buyers by helpingwith travel expenses to shows and onmissions. Whether you are a producer,wholesaler or retailer, you probablyhave a link to the SEC and its activi-ties through one of the SEC members.
– Craig Larsen has served as presidentof the Softwood Export Council since itsfounding in 1998. Previously, he spentnearly two decades with WWPA. Reachhim at [email protected].
36 Building Products Digest January 2014 Building-Products.com
LONG ISLAND Lumber Association honored Paul Gertner (center hold-ing plaque, surrounded by colleagues), president of Starborn Industries,
ASSOCIATION Update
Lumbermen’s Association ofTexas & Louisiana will present sev-eral educational workshops Feb. 4-7 atMenger Hotel, San Antonio, Tx., start-ing with a two-day yard foremanworkshop and followed by one-daysessions on merchandising basics andcustomer service essentials.
LAT’s annual convention, April23-24 at Sheraton Hotel, Arlington,Tx., will feature golf tournaments, anevening party at AT&T stadium inArlington, a dinner dance with vintagemusic and casino-style games, andeducational meetings.
Northwestern Lumber Associa-tion hosts its annual building productsexpo Jan. 13-14 at River’s EdgeConvention Center, St. Cloud, Mn.
Regional lumber dealers conven-tions are set for Feb. 5-6 at MarriottMadison West, Middleton, Wi.; Feb.19-20 at The Meadows, Altoona, Ia.,and March 11-12 at Embassy Suites,Lavista, Ne.
Northeastern Retail LumberAssociation has scheduled its annualexpo for Feb. 26-28 at the John B.Hynes Memorial Convention Center,
Boston, Ma. The event will begin with a break-
fast seminar on creating a values-based culture for your company’s cus-tomer service, followed by a seminaron fiber cement siding. Other eventsinclude a keynote talk by Sugar RayLeonard and a reception celebratingNRLA’s 120th anniversary.
Southern Building MaterialsAssociation will converge on HickoryMetro Convention Center, High Point,N.C., Feb. 5-6 for its annual buildingproducts buying show.
Roundtables will cover purchasingand inventory control, new sales meth-ods, and America’s economic future.
Edison, N.J., as Lumber Person of the Year at its Nov. 6 annual meeting inJericho, N.Y.
Building-Products.com January 2014 Building Products Digest 37
Illinois Lumber & MaterialDealers Association will celebrate its125th anniversary at its annual expoFeb. 17-19 at Prairie CapitolConvention Center, Springfield, In.
Mid America LumbermensAssociation elected Greg Smith, E.C.Barton, Jonesboro, Ar., as its newpresident during its recent annualmeeting in Branson, Mo. He succeedsKevin Rasure, Rasure Lumber Do itCenter, Goodland, Ks.
New 1st v.p. is Dan Prendergast,Moscow Mills Lumber, MoscowMills, Mo.; 2nd v.p. Jim Bishop, VestaLee Lumber, Bonner Springs, Ks.; 3rdv.p. Ed Page, Bowling Green Lumber,Bowling Green, Mo.; NLBMDA dele-gate Alan Clark, Clarks Building &Decorating, Hot Springs, Ar., and sec-retary-treasurer Hatch McCray,McCray Lumber, Kansas City, Ks.
New directors are Landon Garner,Garner Building Supply, Rogers, Ar.;Patrick Goebel, Star Lumber, Wichita,Ks.; Mark Borchers, Great SouthernWood Preserving, Blue Springs, Mo.;Guy McGillivray, Forest ProductsSupply, Newton, Ks., and BrandonAlles, Roberts & Dybdahl, NewCentury, Ks.
New state committee chairs areChris Cleaver, Cleaver Farm & Home,Chanute, Ks.; Adam Hendrix, ChicLumber & Hardware, St. Peters, Mo.,and Gary Smith, Smith & SonsBuilding Center, Anadarko, Ok.
Next up for MLA are its annualMissouri winter meeting Jan. 9-10 inColumbia, Kansas winter meeting Jan.23-24 in Wichita, and Arkansas statecommittee meeting Feb. 6 in LittleRock.
National Lumber & BuildingMaterial Dealers Association hon-ored Pat Thorne Lumber, Chillicote,Mo., as independent Pro Dealer of theYear during its recent IndustrySummit in Nashville, Tn. CallyColeman Fromme, Zarsky Lumber,Victoria, Tx., was honored asGrassroots Dealer of the Year for herwork on the Innocent Sellers FairnessAct (H.R. 2746).
New officers are chairman ChrisYenrick, Smith Phillips BuildingSupply, Winston-Salem, N.C.; chair-elect J.D. Saunders, EconomyLumber, Campbell, Ca.; 1st vice chairScott Yates, Denver Lumber, Denver,Co.; 2nd vice chair Davis Boland,Boland Maloney Lumber, Louisville,Ky.; treasurer Linda Nussbaum, Kleet
Lumber, Huntington, N.Y.; manufac-turers and services council chair RogerDankel, Simpson Strong-Tie,McKinney, Tx., and federated associa-tion execs chair Rita Ferris, NRLA.
North American WholesaleLumber Association will host aSoutheast regional meeting Feb. 13 atHyatt Regency, Birmingham, Al.
Indiana Hardwood Lumber-men’s Association will host its annualexpo and convention Feb. 5-6 atMarriott Downtown, Indianapolis, In.
Educational sessions will focus on
superstars of sales, sales and productknowledge training, and the construc-tion outlook.
Networking events will include thetree farmer breakfast, exhibitor recep-tion, and a bonfire bash.
Mississippi Lumber Manufac-turers Association kicks off its annu-al winter meeting Feb. 5-6 at TheGrand Hotel, Natchez, Ms.
Appalachian Hardwood Manu-facturers Association holds its annualmeeting Feb. 26-March 2 in BocaRaton, Fl.
38 Building Products Digest January 2014 Building-Products.com
Outlook brightens forsouthern pine industry
SPECIAL FocusSouthern Pine
NEW HOME CONSTRUCTION is on the rebound, thenation’s employment picture is inching its way toward
improvement, and lumber dealers are finally recoveringfrom the disastrous impacts of the latest recession.
Measures of builder confidence have also been on therise in recent months. With spotty increases in demand,lumberyards are coping with new sales strategies to invigo-rate monthly sales totals. There’s a bit less market uncer-tainty lately; the lumber industry remains cautiously opti-mistic.
Estimates of total southern pine lumber shipments for
2013 hover around 15.5 billion bd. ft., nearly 8% above the2012 volume and a promising 16% ahead of the 2011 vol-ume shipped. Though a return to historic 2005 highs of 1.7million single-family starts and 19 billion bd. ft. shippedwon’t happen, market indicators suggest that 2014 couldchalk up another year of increased annual shipments.Certainly, more promising days lie ahead for southern pinesuppliers.
Through it all, the Southern Forest Products Associationhas supported southern pine lumber dealers and distribu-tors with the tools they need to improve their sales and ser-vice customers. Whether it’s providing span tables anddesign values, specification and construction guidelines,even outdoor project plans, SFPA has delivered promo-tional and sales support to lumber retailers for nearly 100years.
Now Effective: New Design ValuesIn terms of impact on business, perhaps the biggest
news for southern pine dealers and users last year was theannouncement of new design values for all sizes andgrades of visually graded southern pine dimension lumberthat became effective June 1, 2013. It was the first majorrevision of design values since 1991.
Southern pine’s strength and stiffness is comparable toother softwood species used in residential and commercialconstruction. Southern pine users have many availableproduct options, including visually graded dimension lum-ber and an increasing supply of mechanically graded lum-ber. From framing a house to building a deck, southernpine continues to be a dependable product with superiortreatability against decay and termites.
The new design values apply only to new construction;the integrity of existing structures designed and built usingdesign values meeting applicable building codes at thetime of permitting does not change.
Southern pine users can find complete informationabout the new design values, as well as comparisons withother species and updated span tables by visitingwww.southernpine.com.
“Everyone should be using the new design values nowthat the effective date has come and gone,” said CathyKaake, SFPA’s vice president of technical marketing.
FABULOUS FRAMING: The strength and stiffness of southern pinelumber is comparable to other softwood species used in residential andcommercial construction.
Building-Products.com January 2014 Building Products Digest 39
“Look for the New Design Values logo on SFPA’s publi-cations to make sure you have the current information onsouthern pine lumber products.”
Get Connected:SFPA.org
Lumber dealers need just one online source for all prod-uct information related to southern pine. SFPA’s gateway,www.sfpa.org, provides convenient access to SFPA’s com-prehensive family of websites, dedicated to specific appli-cations.
The flagship marketing site, www.southernpine.com,has recently been upgraded to include several new helpfulfeatures for lumber dealers. The popular Product Locatorremains a dealer’s easiest way to find suppliers from a list-ing of more than 400 products—all sizes, grades, profilesand other specifics are called out here. New to this locatoris the ability to search for suppliers by state, resulting in alist of nearby southern pine manufacturers; complete con-tact information is provided.
Also new to the site is a Lumber Purchase Inquiry form,available right on the homepage. Here, any dealer or usercan fill out a form of what they are looking for, indicatewhere they would like to have it delivered, submit the formto SFPA, and then receive responses from interested mem-ber suppliers.
The listing of updated span tables, based on the newdesign values for visually graded southern pine dimensionlumber, has been remodeled to make a selection of anytable easier and more intuitive. If customers have morequestions about the new design values, SFPA provides adedicated page on its site with all the related details andbackground information on this topic.
Building professionals and serious do-it-yourselfers willappreciate the 10 project plans and information availableinside the Outdoor & Garden Ideas section of the site. Eachproject plan listed is now formatted to standard 8.5”x11”sheets, making it quick and easy for dealers or their cus-tomers to download and print. The projects appeal to alllevels of skill, from the very basic to the more advanced.Plans include lists of pressure-treated southern pine materi-als and tools required, plus detailed construction steps;illustrations cover every phase of assembly. This collectionfeatures three deck plans, backyard storage units, a play-house, doghouse and childrens’ picnic table, among others.
The Publications page contains SFPA’s comprehensiveLumber Library. Here are more than two dozen titles tohelp dealers and their customers properly select and applySouthern Pine materials for the job at hand. A good placeto start is the Southern Pine Use Guide, which includesgrade descriptions, standard sizes, seasoning requirements,plus all design values. The Pocket Span Card has beenupdated to include the latest span information, includingspans for using machine stress rated (MSR) lumber andmachine evaluated lumber (MEL). Hard copies can beordered from this page of the site. These cards are verypopular with builders and building officials wanting ahandy reference to spans on the jobsite. Other publicationsare available listing maximum spans for joists & rafters,plus size selection and allowable load tables for headersand beams. These authoritative booklets are all provided asfree PDF downloads.
When the deck-building season gets underway thisspring, nearly one million homeowners will build a deck oradd on to the one they already have. Dealers can click over
to www.southernpinedecks.com and find complete con-struction details and recommended practices for buildingdecks and porches. Product selection, installation, finishingand maintenance tips—it’s all here. Span tables for deckjoists and beams and other details related to the new designvalues have been updated. SFPA also offers a helpful con-struction guide that dealers can use with professional deckbuilders and advanced do-it-yourselfers. Southern PineDecks and Porches highlights the beauty, durability, com-fort and value that pressure-treated southern pine materialsbring to outdoor structures. This updated booklet coversthe deck and porch building process from start to finish,compiling the latest information for the proper specifica-tion and use of treated southern pine materials for code-accepted decks and porches. Porch construction details areprovided as well, with tips on fasteners, finishes and propermaintenance. Handy tips are included to enhance the build-ing process. Impressive deck and porch projects are illus-trated throughout the booklet. Dealers and professionalsalready familiar with treated lumber can use this booklet asa refresher course in building techniques, or to acquaint acustomer with the versatility and value of using real woodproducts for their new deck or porch.
Best Bet: Treated Southern PineIt’s a fact: the unique cellular structure of southern pine
permits deep, uniform penetration of preservatives withoutincising, making it the preferred species for pressure treat-ment with the newest formulations of preservatives. Nowonder that some 90% of all pressure treated lumber pro-duced in the U.S. is southern pine. This material remainspopular for decks and gazebos, plus marine applicationssuch as fishing piers, bridges and walkways. And, ofcourse, it’s perfect for framing entire homes and otherstructures in areas of the country where excessive mois-
POCKET THIS: The new pocket span card includes tables based on thenew design values.
40 Building Products Digest January 2014 Building-Products.com
ture, decay and termites can createproblems.
Dealers can address customers’green building concerns by notingadvances in wood preservation tech-nology, creating new “earth-friendly”formulations that are now widelyavailable. New code-approved preser-vatives include several micronizedcopper formulations, which reduceimpact on marine or terrestrial envi-ronments and are less corrosive to fas-teners. For the end-user, paints andstains also look better when applied tothese materials. Borates are continu-ing to find growing popularity forwall plates and interior applicationsnot exposed to continual moisture.
Whatever preservative is used,proper application of treated lumber isessential to long-term performance.Along with treaters and preservativemanufacturers, SFPA reminds allusers of treated materials that if theend tag indicates “Above Ground”use, then it is not intended to be usedfor “Ground Contact” applications,which includes lumber in contact withsoil or fresh water.
“Lumber dealers can help preventthe misapplication of treated materialsby educating their customers,” advis-es Eric Gee, SFPA’s director of treat-ed markets business development.“Stair stringers and decks that aresubjected to regular wetting, such as ahot tub platform, are good examplesof where material treated to ‘groundcontact’ specifications should beused.”
SFPA offers a comprehensive
crete slab. Focus groups conducted bySFPA have confirmed that homeown-ers appreciate the look and enhancedcurb appeal of a raised floor home.
Lumber dealers can benefit frompromoting raised wood floor systems,too; each framing package can add athird more lumber when a raisedwood floor foundation is included.Developers are finding that a raisedwood floor foundation is also thecost-effective solution for sloping lotsthat would otherwise require expen-sive fill. Remodeling projects andunderfloor repairs are simplified witha raised floor foundation. Certainly, araised wood floor foundation makessense in flood-prone areas due to itsinherent elevation advantage. It mayalso be the cost-effective approach inareas with poor soils. This type offoundation is easier and less expen-sive to level than a concrete slab ifany shifting or subsidence doesoccurs.
SFPA provides the resources deal-ers need to maximize a customer’ssatisfaction with a raised wood floorfoundation. The basic facts and fea-tures are outlined in a six-chaptervideo series accessed from the home-page of raisedfloorliving.com. A newsection of this site highlights con-struction details for building homeswith closed crawlspaces, explaininginsulation details for optimizing ener-gy efficiency. Helpful constructionguides and promotional brochures canbe downloaded from the publicationspage at southernpine.com, too.
Indoor Beauty:Southern Pine Patterns
While new home construction con-tinues its recovery, repair and remod-eling projects are keeping dealers’customers busy. And southern pineproducts are ideally suited for projectsall around the home.
No matter the décor, southern pineflooring, available in a range ofwidths, grades and finishes, canenhance the look of any indoor space.Homeowners have discovered that awood floor adds comfort and value,not to mention being a healthier, aller-gy-free alternative to carpeting.
Wall paneling and wood ceilingsadd a dramatic flair to all rooms of thehome, providing another opportunityfor any dealer to boost southern pinesales. Using the long lengths avail-able, a customer can reduce splicing.Eye-catching clear or semi-transpar-ent finishes draw attention to southernLOOKING UP: Dealers that promote a raised wood floor system can add a third more lumber to the
typical framing package.
technical guide all about choosing andusing pressure treated southern pine.The new 2014 edition of SFPA’sPressure-Treated Southern Pine fea-tures a simplified specification guideas well as more detailed specificationguidance, if needed. Also included isa table listing the commercial tradename under which each preservativeis marketed and a correspondingproduct website for those wantingadditional information. This new edi-tion will be available soon as a freePDF download at southernpine.com.
New Labeling:Treated Wood
The plastic end tag on each pieceof treated southern pine lumber isbeing updated for easier identifica-tion. In a recent development, thetreated wood industry adopted newlabeling practices for preservative-treated lumber products that are incompliance with the InternationalBuilding Code and InternationalResidential Code. The new end tagshave easily identifiable markings forboth American Wood ProtectionAssociation Standard U1 and ICCEvaluation Service LLC preservative-treated wood products.
A Higher Standard:Raised Floors
SFPA continues its promotion ofraised wood floor foundations, edu-cating building professionals and con-sumers about the merits of building araised home rather than one on a con-
Building-Products.com January 2014 Building Products Digest 41
pine’s distinctive grain. And best of all, wood is a naturalinsulator, contributing to the energy efficiency of thehome.
When it comes time to know proper installation andmaintenance tips, SFPA offers comprehensive guides forusing both interior flooring and exterior porch flooring.Copies of Southern Pine Flooring and Southern PinePatterns are available as free PDF downloads from thePublications page of southernpine.com. A two-part videoprogram covers installation of both materials from start tofinish in a case study format. With a visit to SFPA’sYouTube channel, southernpinelumber, dealers and theircustomers can view both instructional programs right ontheir laptop, on a tablet or smartphone (along with morethan 30 other programs and updates).
Helpful Services for DealersWith regular visits to southernpine.com, lumber dealers
can invest in their future success by learning what’s avail-able to help themselves and their customers build with ver-satile, durable southern pine products. Today, the site is adealer’s top resource for answers to customers’ questions,training salespeople, and for locating product suppliers.Sourcing hard-to-find items can be just a few mouse clicksaway.
Complete information about SFPA and its programs andservices available to the industry are presented online atthe association’s website, sfpa.org. SFPA continues toextend its social media reach, too. Dealers can followSFPA on Twitter, @southern_pine, receiving newsupdates, enabling immediate access to information.
UNDER FOOT: Southern pine flooring, available in a variety of widthsand grades, enhances the décor of a home.
42 Building Products Digest January 2014 Building-Products.com
WARREN TRASK Co. hosted anopen house to show off its [1] newfacility in Albany, N.Y. [2] BernieNugent. [3] Scott Lewis, Ken Mello.[4] Bill Nauman, Clayton Clark. [5]Vincent Micale, Debbie & LarryStephenson, Larry Carr. [6] CharlieVogel, Laura Bevevino, Tim Wiley. [7]Jack Curry. [8] Bob Hansen, GilAdams, Rick Palmiter. [9] AndyKennedy, Jim Zlotnick, Tom Novine.
Building-Products.com January 2014 Building Products Digest 43
NEW Products
Easier-to-HandleTrimboard
Versatex has added five easier-to-handle sizes to its line of 1-1/2” thick Versatex Max extrud-ed cellular PVC sheets.
The new sizes (2”x4”, 2”x6”,2”x8”, 2”x10”, and 2”x12”) weredeveloped based on feedbackfrom customers.
All sizes are made to eliminateor reduce lamination steps duringfabrication of custom mouldings,rails, pergolas, and corbels.
VERSATEX.COM(724) 857-1111
Prefab BalconiesWahoo Complete is a prefabri-
cated aluminum balcony for usein multi-family construction.
Made from 50% post industri-al-post consumer scrap alu-minum, it is fireproof, powdercoated, and marine grade.
Two walking surfaces areoffered: Wahoo’s AridDek alu-minum decking or DryJoist struc-tural joists with traditional deckboards.
WAHOODECKS.COM(877) 270-9387
Concrete Slab SealDependable’s Vaporseal HM is
a 100% solid epoxy, moisture-mitigation seal for concrete slabs.
With no VOCs, mixing andapplication are easy. Each two-part kit can cover up to 700 ft.
FLOORPREP.COM(800) 227-3434
Waterproof Roofs ina Flash
The new Kemperol Flash Packfrom Kemper System America isan easy-to-use solution for water-proofing and repairing leaks inroofing and flashing.
Each kit contains everythingneeded to cover, re-flash, orrepair up to 25 sq. ft. The fullyreinforced resin system providesfull closure to flashings and roofpenetrations, eliminating theneed for pitch pockets.
KEMPERSYSTEM.NET(800) 541-5455
Your Eastern & Midwest Redwood SpecialistREDWOOD DECKING
THE NATURAL ALTERNATIVEFull Range & Large Inventory
Reman to Specific Patterns
CHICAGO SUBURBAN LUMBER SALES800-341-6485
7459 Franklin St., Forest Park, IL 60130Fax: 708-771-7391 • Email: [email protected]
www.chicagosuburbanlumber.com
• Clear All Heart• Clear Mixed Grain• Construction Heart
• DeckingPattern Stock • Bevel Siding • Beaded Ceiling
We Ship by the Unit or by the PieceFamily Owned & Operated for Over 60 Years
44 Building Products Digest January 2014 Building-Products.com
The Look of Rock WallsSimTek decorative rock walls offer beauty, privacy,
and noise reduction. Made of proprietary polyethylene plastic and rein-
forced with galvanized steel, SimTek walls are resis-tant to impact, organic processes, ultraviolet light,almost all chemicals, termites, and other insects.
Their modular design enables a seamless transitionbetween panel sizes. Six colors are available, in 3’, 4,6’, and 8’ heights.
SIMTEKFENCE.COM(866) 648-9336
Easy-to-Install StoneEnvironmental StoneWorks’ ClipStone mortarless
stone veneer creates the look of natural stone.It can be screwed directly to sheathing or walls with
an embedded mounting clip. A lapping-down designensures stones fit together tightly in all four directions.
Universal corners and accessories are also available.
MYCLIPSTONE.COM (800) 891-5402
Easy TarpingPowered Truck tarping from U.S. Tarping Systems
minimizes the time-consuming and dangerous task oflaying out tarps on top of loads.
The product enables a single user to tarp a loadwithout leaving the ground. The system can beinstalled as a stand-alone building or be incorporatedinto existing structures.
USTARPINGSYSTEMS.COM(800) 523-5287
Modified Wood WrapsNew post wraps from
Perennial Wood match thebeauty and durability of thecompany’s modified wooddecking and porch flooring.
The wraps provide a finisheddimension of 6”x6” to tradition-al 4”x4” posts.
They are available uncoatedor factory-finished in cedar,mahogany, and Cape Cod gray.
PERENNIALWOOD.COM(800) 530-7496Georgia’s Leading Producer of
Southern Pine Lumberfor the South, Northeast & Midwest
Grade Marked SYPGrades: MSR 2400f 2.0E, #1, #2, #3
All MSR is pulled to a #1 wane rule (1W)
Dimensions: 2x4 thru 2x12Lengths: 8’ thru 20’
We offer Individual Pack Bagging & Whole Car Wrap
Our Mills are Serviced bythe NS and CSX railroads
www.tollesonlumber.com
Building-Products.com January 2014 Building Products Digest 45
Underlayment That SealsUltra HT Wind & Water Seal from MFM Building
Products is a self-adhering roof underlayment with a90-day UV-exposure rating.
The product is engineered as a whole-roof underlay-ment for use with asphalt shingle and metal roofingproducts.
A split-release liner can be used in valleys, ridges,around chimneys, and at eaves for protection againstice dams, wind-driven rain, and water penetration.
MFMBP.COM(800) 882-7663
Speedier Deck InstallationsThe Speedeck decking gauge can position up to five
deck boards with perfect 1/4” gaps for quicker andeasier installations.
Manufactured with high-density polyethylene, thetool reduces installer fatigue and keeps hands safelyaway from nail guns.
Five sizes—4”, 5-1/4”, 5-1/2”, 6”, and 8”—accom-modate a range of boards sizes.
SPEEDECKTOOLS.COM
46 Building Products Digest January 2014 Building-Products.com
GET FUELED UP!AT THE 120th LBM EXPO
The 120th LBM Expo will be held in Boston at the Hynes Convention Center in late
February 2014. LBM Expo ’14 is your pit stop for ideas, networking events,
education and hundreds of LBM products and services. Mark your calendar today
and plan to rev up business this year!
EXHIBITS
EDUCATION
NETWORKING
LBM EXPO ’14
LBM EXPO ’14
FEBRUARY 26-28, 2014
JOHN B. HYNES MEMORIALCONVENTION CENTER,
BOSTON, MA
LBM EXPO IS PRODUCED BY:
PROVIDING SERVICE TO THE LUMBER & BUILDING
MATERIALS INDUSTRY FOR 120 YEARS.
Water-SheddingDecking
DuxxBak decking from GreenBay Decking is designed to shedwater without the need for anunder-deck drainage sysem. Itspatented formulation is madefrom a combination of rice hulls,a paper by-product, and HDPE.
Specially designed end capshelp water drain from the decktop, creating a dry space under-neath the deck that can be usedfor additional outdoor livingspace or storage.
Boards come in 12’, 16’ and20’ lengths, in six colors: rusticred, copper canyon, walnut, drift-wood, mahogany and cedar.
GREENBAYDECKING.COM(877) 804-0137
Wondrous WrapsKleerWrap post wraps from
Kleer Lumber are designed toinstall in minutes.
The pure-white posts are virtu-ally impervious to moisture andinsects, but have the look of nat-ural wood and can be painted.
Sizes are 4”x4”, 6”x6”, and8”x8, in 8’ and 10’ lengths. Twobed-moulding sets are includedwith each post, and additionalmouldings can be ordered.
KLEERLUMBER.COM(866) 553-3770
PVC Deck with CharmParamount PVC decking from
Fiberon combines lasting durabilitywith a realistic wood look.
The line includes two solid colorand three multi-colored looks, in
square-edge and grooved profiles.Phantom hidden fasteners provide asmooth surface.
FIBERONDECKING.COM(800) 573-8841
Building-Products.com January 2014 Building Products Digest 47
IN MemoriamTravis Nathan Canepa, 48, fore-
man of Hughes Lumber, Muskogee,Ok., died Nov. 24 in Muskogee.
He joined Hughes in 1998.
Richard Marvin Ingram Sr., 80,retired owner of Shore BuildingSupply, Lewes, De., died Nov. 29.
Stanley Dean Richardson Sr., 78,longtime Decatur, Il., lumberman,died Nov. 13 in Decatur.
He started his lumber career withHunter-Pogue Lumber, working there36 years before joining Sims Lumber.
Scott G. Harmon, 41, formeremployee of Webster Lumber/StellaJones, Bangor, Wi., died Nov. 29 inBangor after a battle with ALS.
He spent 21 years with the firm.
Paul D. Mathews, 84, founder ofSII Dry Kiln, Lexington, N.C., diedDec. 10 in Lexington.
He founded SII Dry Kiln in 1969,serving as president until his retire-ment in 2004.
Robert Casper, 92, founder ofCasper True Value Hardware, LakeZurich, Il., died Nov. 30.
During World War II, he servedwith the Air Force.
He founded the family business in1969 and retired 10 years ago.
Duane Martin Kleiman, 77,founder of Kleiman’s Wood Products,Custer, S.D., died Dec. 12 in Custer.
He started his career as manager ofCuster Lumber Sawmill, Custer. Helaunched Kleiman’s in 1973.
After a period of sharp declinesresulting from the failing housing mar-ket and declining economy, the retaillumber and building material industryis set for a modest turnaround, thanksto a series of positive changes that willaffect revenue over the next five years,according to a new IBISWorld report.
Over the past five years, revenuefor LBM dealers has grown at a mini-mal average annual rate of 1.8%.
According to IBISWorld analystKerry Coughlin, “The volatile cost oflumber, which accounts for about65.4% of industry sales, has also bur-dened industry firms over the period.”
The trend has made it difficult forretailers to anticipate future spendingand control costs. Furthermore, theindustry has experienced intensifyingcompetition, especially from homeimprovement stores, which offer theadded convenience of one-stop shop-ping and, at times, lower prices.
IBISWorld estimates that profitdeclined to industry lows in 2010,only to recover in 2013 with marginsreaching 2.6%. Falling margins causedsome operators to exit the industry orconsolidate. As a result, the number ofenterprises fell at an average annual
rate of 1.7% to 43,692 in 2013.“After facing stagnant conditions
following the recession, the housingand nonresidential construction mar-kets finally began making significantstrides in 2012, and strong gains inboth sectors are expected for 2013,”said Coughlin. IBISWorld projectsindustry revenue jumped 10.1% to$96.3 billion in 2013, driven by anincrease in residential constructioninvestment and higher spending onhome improvements.
As population growth and pent-updemand drive up housing starts, andimproved economic conditions boostdemand for repairs and renovations,sales will continue to rise, albeit not ashigh as pre-recession levels.
LBM Retailers Set for Modest Turnaround
48 Building Products Digest January 2014 Building-Products.com
WE BUY AND SELL PANEL STRIPSPlywood, OSB, particleboard and MDF by the
truckloads. Lumber Source, Phone (800) 874-1953, Fax 888-576-8723, [email protected].
Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centeredcopy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished“camera-ready” (advertiser sets type), $65 if we set type.
Send ad to Fax 949-852-0231 or [email protected]. For more info, call (949) 852-1990. Checks payable to Cutler Publishing. Deadline: 18th of previous month.
To reply to ads with private box numbers, send correspondence to box number shown, c/oBPD, 4500 Campus Dr. #480, Newport Beach, Ca. 92660. Names of advertisers using box numbercannot be released.
WANTED TO BUY
WANTED TO BUY
CLASSIFIED Marketplace
TRI-STATE LUMBER CO.Your Southern Yellow Pine
Timber ConnectionSpecializing in 6x6, 6x8, 8x8, 10x10
Tel. (662) 862-2125 • Fax 662-862-4900email [email protected]
HELP WANTED HELP WANTED
JOIN OUR WINNING TEAM!CEDAR CREEK is looking for a few good men and women. We believe that our great
people are the key to our company’s success. Aggressive growth has created Sales, Operationsand General Management opportunities across Cedar Creek’s expanding footprint.Consequently, we’re looking for the very best people in our industry to help staff and grow ournew and existing distribution centers across the country. Please contact us if you:
• Have a successful track record • Can relocate for the right opportunity • Desire earnings and responsibility commensurate with your ambition • Are experienced in lumber and/or building products sales or operations For more information about Cedar Creek, please go to www.cedarcreek.com. If you’re
interested in learning more about how you may become a key player on our winning team, pleaseemail your resume to [email protected] for a confidential review of your qualifications.
PRODUCTS FOR SALE
PRODUCTS FOR SALE
SHAVER WOOD PRODUCTSSouthern Yellow Pine Timber Production
6x6, 6x8, 8x8, 10x10, 12x12Reload Services & Storage AvailableNorfolk Southern Mainline Served
Easy Access to I-40 & I-77Company-Owned Truck Fleet
(704) 278-9291 • Fax (704) 278-9304Cleveland, N.C.
email [email protected] [email protected]
Visit the ALL-NEWBuilding-Products.
com• More news • User-friendlier layout
• Frequent updates every day• Smartphone & tablet accessible
• Improved search features• Event photos • Videos • Surveys
• Building products stock ticker
BUSINESS FOR SALE
ESTABLISHED LUMBER company/buildingsupply in eastern N.C. Five+ acres, fenced yard,rail spur. Three weather-tight warehouses andshowroom. Sales in the millions over 30 years.Wholesale distributor also open to the public.More details, [email protected].
Building-Products.com January 2014 Building Products Digest 49
DATE BookListings are often submitted months in advance. Always verify
dates and locations with sponsor before making plans to attend.
Mid-America Lumbermens Association – Jan. 9-10, Missouri win-ter meeting, St. Louis, Mo.; (800) 747-6529; www.themla.com.
United Hardware Distributing Co. – Jan. 10-12, market, Conven-tion Center, Minnneapolis, Mn.; www.unitedhardware.com.
Northwestern Lumber Assn. – Jan. 13-14, expo, Rivers Edge Con-vention Center, St. Cloud, Mi.; (763) 544-6822; www.nlassn.org.
New Jersey Building Materials Dealers Assn. – Jan. 15, regionalmeeting, Kenilworth, N.J.; (609) 802-0238; www.njbmda.org.
Lumbermens Association of Texas – Jan. 15-16, estimating work-shop, Baton Rouge, La.; (512) 472-1194; www.lat.org.
Lake States Lumber Assn. – Jan. 16-17, winter meeting, Radisson,Green Bay, Wi.; (888) 213-2398; www.lsla.com.
House-Hasson Hardware Co. – Jan. 16-18, market, OprylandResort, Nashville, Tn.; (800) 333-0520; www.househasson.com.
Buttery Co. – Jan. 18-19, dealer market, Bell County ExpositionCenter, Belton, Tx.; (800) 880-1515; www.butterycompany.com.
Do it Best Corp. – Jan. 20-22, winter conference, Swan Resort,Orlando, Fl.; (260) 748-5300; www.doitbestcorp.
Rhode Island Lumber & Building Material Dealers Association –Jan. 23, meeting, Augusta, Me.; (800) 292-6752; www.nrla.org.
Mid-America Lumbermens Association – Jan. 23-24, Kansas win-ter meeting, Wichita, Ks.; (800) 747-6529; www.themla.org.
HDW Inc. – Jan. 24-26, dealer market, Little Rock ConventionCenter, Little Rock, Ar.; (800) 256-8527; www.hdwinc.com.
Northeast Window & Door Assn. – Jan. 27-28, winter meeting,Foxwoods Resort & Casino, Mashantucket, Ct.; www.nwda.net.
Surfaces – Jan. 27-30, Las Vegas, Nv.; www.surfaces.com.National Assn. of Wholesaler-Distributors – Jan. 28-30, executive
summit, Fairmont, Washington, D.C.; (202) 872-0885; naw.org.New Jersey Building Materials Dealers Assn. – Jan. 29, regional
meeting, Galloway, N.J.; (609) 802-0238; www.njbmda.org.WoodWorks – Jan. 29, Wood Solutions Fair, Charlotte Convention
Center, Charlotte, N.C.; (866) 966-3448; www.woodworks.org.International Builders Show – Feb. 4-6, Las Vegas Convention
Center, Las Vegas, Nv.; (800) 368-5242; buildersshow.com.Lumbermens Association of Texas – Feb. 4-5, yard foreman work-
shop; Feb. 6, merchandising basics; Feb. 7, customer serviceessentials, San Antonio, Tx.; (512) 472-1194; www.lat.org.
New Jersey Building Materials Dealers Assn. – Feb. 5, regionalmeeting, Maywood, N.J.; (609) 802-0238; www.njbmda.org.
Indiana Hardwood Lumbermen’s Assn. – Feb. 5-6, convention &expo, Marriott, Indianapolis, In.; (800) 640-4452; www.ihla.org.
Northwestern Lumber Assn. – Feb. 5-6, Wisconsin lumber conven-tion, Marriott West, Middleton, Wi.; (763) 544-6822; nlassn.org.
Southern Building Material Assn. – Feb. 5-6, show, Hickory MetroConvention Center, High Point, N.C.; www.southernbuilder.org.
Mississippi Lumber Manufacturers Assn. – Feb. 6-7, winter meet-ing, Natchez, Ms.; (601) 982-1731; www.mslumbermfg.org.
Monroe Hardware Co. – Feb. 8-9, market, Cabarrus Events Center,Concord, N.C.; (704) 289-3121; www.monroehardware.com.
New Jersey Building Materials Dealers Assn. – Feb. 12, regionalmeeting, West Trenton, N.J.; (609) 802-0238; www.njbmda.org.
North American Wholesale Lumber Assn. – Feb. 13, regionalmeeting, Birmingham, Al.; (800) 527-8258; www.nawla.org.
Northeastern Retail Lumber Assn. – Feb. 26-28, annual expo,John B. Hynes Memorial Convention Center, Boston, Ma.; (800)292-6752; nrla.org.
Fulton, Mississippi • www.homanindustries.com(662) 862-2125 • Fax 662-862-4900
Now Stocking 2x6x16 #1 & #2Ground Contact CM
for Splashboard & Stall WallsWhat Do You Need?
Superior Service at Competitive RatesMade the Way You Want It
Specializing in 6x6, 6x8, 8x8, 10x10
True 2&Btr. with # 1 Stamped___________________Lumber Protected
against Sapstain, Mold, Fungi with AntiBlu___________________Treatments • Wolmanized CA-C
Good Housekeeping SealSCS Certified Environmentally Preferable NAHB Research Center Green Approved
• CCA___________________Sourced fromSFI Certified Forests
50 Building Products Digest January 2014 Building-Products.com
ADVERTISERS IndexFor more information on advertisers, call them
directly or visit their websites [in brackets].
Blue Book Services [www.bluebookservices.com] ....................30
Cabot [cabotfactoryfinish.com] ......................................................5
California Redwood Co. [californiaredwoodco.com].........Cover II
CenterLine Trailers [www.centerline-trailers.com] .....................24
Chicago Suburban Lumber [chicagosurburbanlumber.com] ....43
Columbia Vista Corp. [www.columbiavistacorp.com] ................29
Crumpler Plastic Pipe [www.cpp-pipe.com] ................................49
C.T. Darnell Construction [www.ct-darnell.com].........................35
DeckWise [www.deckwise.com] ...................................................41
Everwood Treatment Co. [www.everwoodtreatment.com].........17
Hancock Lumber [www.whitepine.me].........................................37
Idaho Forest Group [www.idahoforestgroup.com] .....................29
InSpire Roofing Products [www.inspireroofing.com]...................8
KOMA Trimboards [www.komatrimboards.com] ..........................3
Lumbermens Association of Texas [www.lat.org] ......................42
Northeastern Retail Lumber Association [www.nrla.com] .........46
Pleasant River Pine [www.pleasantriverlumber.com] ......19A-19B
Plycem USA [www.plycemtrim.com] ............................................21
Potlatch [www.potlatchcorp.com] ................................................33
PPG Machine Applied Coatings [www. ppgpro.com]..................15
Ray White Lumber [www.raywhitelumber.com] ............................4
Roseburg Forest Products [www.roseburg.com].............Cover IV
Screw Products [www.screw-products.com] ..............................11
Simpson Strong-Tie [www.strongtie.com]...........................Cover I
SilvaStar Forest Products [www.silvastar.com] ...........................7
Skyreach L&S Extrusions [www.skyreachls.com] ......................36
Smith Millwork [www.smithmillwork.com]...................................47
Snider Industries [www.sniderindustries.com] ...........................22
Southern Forest Products Association [www.sfpa.org] .............25
Swanson Group Sales Co. [www.swansongroupinc.com].........31
Terminal Forest Products [www.terminalforest.com].................45
Tolleson Lumber [www.tollesonlumber.com]..............................44
TriState Lumber [www.homanindustries.com]............................49
Versatex [www.versatex.com].............................................Cover III
Warren Trask Co. [www.wtrask.com] ...........................................23
IDEA FileDoing Good
Business basics and civic responsibility havehelped an East Coast dealer to thrive, even in tougheconomic times.
“It’s service and price,” says Scott Pesavento, ownerof Hemlock Hardware, Fairfield, Ct. “This past yearwas our biggest and best year in 21 years.”
To stimulate business, he dropped prices on 35% ofhis inventory and plans to reduce prices on almost allthe merchandise he sells. “Our industry has contract-ed,” he says. “The weak don’t survive.”
Pesavento also believes that his business succeedsby working hard to serve the community, by hiringonly local residents to work in the store, and support-ing local charities—especially in times of disaster.
He says that he cherishes the close connection hefeels with regular customers. “I’ve had people sobbingin my arms,” he says. “You can’t put a value on that.”
After Hurricane Sandy, his store donated severalhundred lanterns to those in need. When a winter bliz-zard shut down power, he stepped up with free flash-lights. Last summer, he donated fans to elderly resi-dents.
“Hemlock Hardware has always been there to helpus in a variety of ways,” says police chief GaryMcNamara. “It’s such a good partnership.”
When a local family has a particular need, such asinsulation in cold weather, the police department callsPesavento. When a weather-related crisis develops,Pesavento contacts police to offer help.
Hemlock Hardware’s commitment to communityhelped it win a national award from its co-op, Do itBest, which has 3,800 member-stores worldwide.Hemlock was the only one in Connecticut to be nameda 2013 Hardware Store All Star for outstanding cus-tomer service, community involvement, and businessacumen.
Pesavento believes that running a small business hasits advantages. He doesn’t have to answer to share-holders, and his customers enjoy the old-fashionedaspect of direct service and mutual respect.
“My grandfather was a handshake kind of guy,” hesays, “and so am I.”
BPDBuilding Products Digest
4500 Campus Dr. No. 480Newport Beach, Ca. 92660-1872
Change Service Requested