building products digest - august 2010

GREEN YOUR OPERATIONS � MILLWORK: GO HIGH- OR LOW-END? � NAWLA SPECIAL ISSUE

AUGUST 2010

INDUSTRY NEWS & MONEY-MAKING STRATEGIES FOR LUMBER & BUILDING MATERIAL DEALERS & DISTRIBUTORSBPD Building

Products Digest

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44 � Building Products Digest � August 2010 Building-Products.com

BPD BuildingProducts Digest

August 2010 �� Volume 29 �� Number 6

Special Features8 FEATURE STORYHIGH-END VS. LOW-END MILLWORK

10 PRODUCT SPOTLIGHTSOUTHERN CYPRESS WINS POINTS FORGREEN BUILDING PROJECTS

12 MANAGEMENT TIPSGREEN YOUR OPERATIONS

16 INDUSTRY TRENDSLUMBER PRICES HAMMERED BY END OF

CREDIT, RISING IMPORTS

20 SPECIAL FOCUS: NAWLA16-PAGE SPECIAL SECTION DEVOTED TO

LUMBER WHOLESALERS

40 MANAGEMENT TIPSSTOP “SLACK-OFF SUMMER” SYNDROME

48 PHOTO RECAP: SLMASOUTHEASTERN LUMBER MANUFACTURERSASSOCIATION MEETS IN FLORIDA

In Every Issue6 TOTALLY RANDOM14 COMPETITIVE INTELLIGENCE19 OLSEN ON SALES36 ASSOCIATION UPDATE37 MOVERS & SHAKERS38 GREEN RETAILING42 NEW PRODUCTS47 IN MEMORIAM48 CLASSIFIED MARKETPLACE49 DATE BOOK50 IDEA FILE50 ADVERTISERS INDEX20 OVER THE COUNTER

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BPDBuilding Products Digest

I THINK MANY OF US BUSINESS OWNERS have been forever changed by the reces-sion as to how we are running and will run our businesses in the future. A

recent survey of small business owners suggested that two-thirds of us are think-ing differently about how we operate.As I wrote last month, we are in a highly interconnected global market where

the slightest sneeze anywhere sends a panic signal around the world. Informationis pushed out instantly, at the touch of a send button. Much of this information iswithout commentary, leaving plenty open to interpretation. Most of us havelearned that nothing is predictable, and the business models we have used to greatsuccess may no longer be valid in today’s revolution of change.For those of us who are surviving, many are different from what we were three

years ago when the recession kicked in. We have become leaner and meaner (andmeaner maybe not in a good way), pragmatic, cynical, and yet still uncertain ofwhat the future holds, particularly in our industry, which could well be among thelast to recover from the effects of the recession. I can well understand the temptation to hunker down and wait for the sun to

shine again. Again, as I wrote earlier, at a time when the national and global psy-che has changed due to factors out of our individual control, it is difficult to investin new business opportunities—or even to get capital. But when competition fadesand distribution strategies change, one man’s bust is another man’s gain. Assomeone told me recently, the sooner we all realize and accept that everything haschanged, the faster we will look at our opportunities in a different light and thefaster we will recover.So accepting that today is a new day and believing in the 80/20 rule (that 80%

will not change enough), what do you do to make yourself one of the 20% whowill? I remind that you can never be satisfied with what you have achieved oneday after you have achieved it. Take a moment to enjoy your achievements, butrealize that tomorrow is another day. Sitting still should not be an option.Instilling that thinking throughout your company is not easy, especially when

many are burned out from the stresses of the past years and wary of change. Assomeone who has consulted for other businesses, I have learned that most compa-nies lack a clear understanding of who they are, what they are, and where they aregoing. Business sort of just happens. When was the last time your company satdown and in a meaningful way rethought its vision and strategy for the future? Each company must understand and restate why it exists. When your firm

started, for example in 1982, there was a different reason for doing business thanwhat exists today. Times change, as do the reasons you exist. What do you wantto achieve—be a $50-million company, be the No. 1 in your region, or beat outXYZ Co.? Define how you will go about achieving those goals in clear, conciseand actionable statements.Next, what values do you expect throughout the organization? Yes, the old

standards are still valid (integrity, respect, etc.), but you should also include waysto differentiate your service from everyone else. Lastly, create or recreate your brand by also differ-

entiating your company or products. A brand is notjust a logo or ad campaign; it is about creating a plat-form from which all marketing, communications andactions emanate. Everything you do afterwards eitherenhances or dilutes the brand. Understand what yourcustomers think of you (something I can guaran-tee most of us are clueless about) and takeactions that strengthen the brand. Identifying what makes us tick provides

the ammo to push forward and take us to abetter place. There has never been a bet-ter time to begin the analysis. Good luck!

Alan Oakes, [email protected]


FEATURE StoryHigh-End vs. Low-End Millwork

upscale, Atlanta hotels that are looking to boost gueststhrough an easy, elegant addition such as crown mould-ings.”“Meanwhile,” Duncan continues, “the d-i-y segment

seems to be gaining momentum. Homeowners realize theeconomic situation remains to poor, but the initial shock isgone and people are gaining some confidence again. Manycannot afford to sell their homes, but they can undertake d-i-y and small remodeling projects to make their homesmore comfortable or more competitive, should they decideto sell. Geographically, we have noticed a large upswing inTexas, specifically the Austin area, where the real estatemarket remains viable in these economic times.”Jim Russell, president and sales manager, Russell

Manufacturing, Hubbard, Or., agrees: “During recessions,homeowners elect to do repairs themselves, which booststhe home center business. Door shops and distributors typi-cally purchase material for new homes, which is off maybe40-50% from previous years, so they’re slow. Banks havetightened money to contractors so it’s harder for them tofinance a spec home. Starter homes and multi-family hous-ing has been hit the hardest; a new homeowner finds it dif-ficult to secure a mortgage.”Some high-end business remains—but it already was a

small slice of the pie. “People who have luxury homes havethe money anyway and see that this is the cheapest time toremodel, as everyone is looking for work, but only maybe5% of production goes to high-end custom homes,” Russellsays.Richard A Ungerbuehler Sr., president, Federal

Millwork Corp., Fort Lauderdale, Fl., has seen a recentuptick in demand, but attributes it to the loss of competingcustom manufacturers rather than an increase in constru-tion. “To be sure, in our south Florida marketplace, theconstruction industry continues to lose jobs every month,”he says. “The overbuilding, coupled with mortgage abuses,foreclosures, the shifting population, business closuresadding to the unemployment numbers, and the lack of landfor development all add to the malaise in which we all havefallen victim.”He thinks, percentage-wise, high-end may be holding up

better than low-end. “The construction we see in the resi-dential market is at the upper end of the construction eco-

High-end vs. low-endThe millwork industrygoes to extremes

TALK TO A MOULDING and millwork company that’s sur-viving the recession—or one of the few that’s thriving

despite it—and you’ll probably hear one of two seeminglydisparate tales: They’ll admit that the housing slump haskilled their sales of low-end products typically used in tracthomes, but they’re flourishing with high-end products forcustom, luxury homes. Or they might say that tough eco-nomic times have made low-priced millwork more appeal-ing to cash-strapped do-it-yourselfers, forced to stay in andfix up their old homes. So which is it?Windsor Mill, Cotati, Ca., provides both high-end and

low-end products, but growth has come from the former—because those are the customers who have survived. “For the space that we’re in, the quality craftsman and

the quality builder have survived over the last five yearsbecause of the quality of the wood,” says president CraigFlynn. “They’re our core customer, and we haven’t seenthem switch.”On the other hand, notes Dwight Duncan, owner and

president of Century Architectural Specialties, Marietta,Ga., “From my viewpoint in the millwork industry, theslump continues with high-end new construction, unless itis large scale project related. For instance, we have hadsome recent success with commercial installations in

Building-Products.com August 2010 � Building Products Digest � 99

nomic scale,” Ungerbuehler shares.“They seem willing to spend becauseof the stiff competition amongbuilders fighting over contracts, lum-beryards and manufacturers offeringdeep discounts, reduced land costs,and low interest rates.”He sees the trend, however, as dat-

ing back even before the recession, as“potential buyers (seemed) more dis-criminating when it came to profile,species and finish. The buying publicwas becoming more discerning in theirtaste for quality over quantity, high-end instead of low-end products.”Yet, says Ungerbuehler, “there will

always be a place for the low-endproduct offered to the public. Frankly,that is what the masses can afford.However, with the introduction ofsynthetics of all types, there seems tobe a move to offer the appearance ofhigh-end products at the low-endprice. Flooring is a good example.Quality hardwood floors are beingreplaced with laminated products, bothwith wood and a form of plasticveneers. A quality hardwood floor willlast the life of a home and can berefinished. The synthetics may last ageneration, but offer no way to regen-erate its appearance or functionality.”Moulding & Millwork, Ferndale,

Wa., has been fortunate to have ahealthy housing market in its back-yard. “In Vancouver, B.C., housingprices have flourished,” says StuartCuthbert, national sales manager.Construction “slowed down, there wasa bit of a dip, but ever since housingvalues have shown a constantlyupward graph. However, in the last 18months, there’s been significant pres-sure to be tight on cost. But that hasn’tnecessarily pushed people towardlower end profiles.”Although Dorris Lumber &

Moulding Co., Sacramento, Ca., pro-duces only premium solid pine mould-ings, c.e.o. Joshua Tyler also sees costas the key, no matter if one specializesin “high-value or low-value mould-ings.” Retailers who squeeze hardeston price are still buying. “I would saythat if you sell into Home Depot orLowe’s, business is better than nor-mal,” Tyler explains.Overall, both scenarios seem true—

millwork companies are succeedingby focusing on low- and high-end.Everything’s down, but sellers areimproving their chances for servingthe demand that remains by knowingtheir market and specializing in whatit wants.

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HURRICANE-DOWNED cypress from New Orleans’ Botanical Park was used to construct a modu-lar pavilion that was built for garden volunteers, but is also used for meetings, seminars, and parties.(Photo by Mike McKay, Lexington, Ky.)

IT’S NO WONDER southern cypress—known for its natural beauty and

durability—is a favorite in greenbuilding projects. From interior ceil-ings to exterior siding, cypress per-forms.“Not only does it provide a beauti-

ful appearance, but its resistance torot and acceptance of a wide range offinishes are just as attractive,” saysNancy Tuck, vice president of financeat Gates Custom Milling, Gatesville,N.C., and past president of theSouthern Cypress ManufacturersAssociation. Gates Custom recently supplied

cypress siding for the MerchantsMillpond Visitor Center in Gatesville.Located in Millpond State Park, thenew 7,500-sq. ft. welcome center wasdesigned by architect Frank Harmon,who prefers to specify locally sourcedwood.

Although the architect initiallyspecified Atlantic white cedar for theexterior of the center, Tuck suggestedusing cypress—in this case, logs sal-vaged from the nearby Great DismalSwamp National Wildlife Refuge andmilled into siding by Gates. “Cypress supplied the warm, clean

look he wanted and stands up to theelements naturally,” says Tuck. Alongwith locally sourced wood, the build-ing also includes recycled-steel struc-tural members, concrete block withhigh fly-ash content, and a metal roofwith solar reflectivity that reducesheat gain—which will probably addup to LEED Gold certification. At Shangri La Botanical Gardens

and Nature Center, Orange, Tx., hur-ricane-downed cypress from the prop-erty and cypress salvaged from rivers

CYPRESS reclaimed from the nearby Great Dismal Swamp National Wildlife Refuge was milled intosiding for the Merchant Millpond Visitor Center, Gatesville, N.C. (Photo by Richard Leo Johnson,Atlantic Archives Inc., Savannah, Ga.)

Cypress wins points forgreen building projects

PRODUCT SpotlightSouthern Cypress


in nearby Louisiana was used to con-struct new buildings, walkways, view-ing structures, and outdoor furniture.The project earned LEED Platinumcertification and was named one ofthe Top Ten Green Projects of 2009by the American Institute ofArchitects. “We often use cypress, especially

where we need a highly decay- andinfestation-resistant material that canstand up to the elements,” said BobHarris, LakeFlato Architects, SanAntonio, Tx. “It’s a sustainable mate-rial that adds lasting beauty that holdsup over the long haul.” After Hurricane Katrina severely

damaged New Orleans’ BotanicalPark and uprooted many old cypresstrees, director Paul Soniat invitedlocal mills to collect the wood. FrankVallot, owner of Acadia Hardwoods,Ponchatoula, La., accepted the invita-tion and then donated cypress lumberfor a new volunteer’s pavilion.Soniat’s nephew, architect Mike

McKay, who practices in Lexington,Ky., and teaches at the University ofKentucky’s College of Design, wasthe designer. The open-air structurehas a storage area for gardening toolsand supplies, a potting shed, and ameeting area for meetings and semi-nars.“People want to have parties and

lectures in it,” says McKay. “It went

NEW RESIDENTIAL COMPLEX at Rice University, Houston, Tx., where vertical-grain cypresswraps the first-floor exterior, extends as paneling into an interior entry, and then up a stairway to thesecond floor. Window trim is also cypress. (Photo by Rice University)

ACCOUSTICAL CEILING of the newly renovated ticketing hall at Jackson Hole Airport, GrandTeton National Park, Wy., was manufactured from cypress rather than Douglas fir. (Photo by RulonCo., St. Augustine, Fl.)

from this little potting shed into areally beautiful pavilion that peoplecan use for other things.”Custom Lumber Manufacturing,

Dothan, Al., recently supplied verti-cal-grain cypress for a new residentialcomplex at Rice University, Houston,Tx., at the request of architect SirMichael Hopkins.“He liked the look of vertical grain

cypress—had seen it at another pro-ject we supplied in Long Island,N.Y.,” says Chuck Harris, Custom’s

president. “We were tracked downbecause he wanted the same look.”According to Harris, cypress siding

wraps the first-floor exterior, extendsas paneling into an interior entry, andthen up a stairway to the second floor.He said that the window trim was alsoconstructed of vertical-grain cypress.Harris says that Custom recently

supplied a second order of cypress forthe university and has received aninquiry for a third shipment. “As lesswestern red cedar and redwoodbecomes available, cypress seems totake the place of these woods,” hesays. “People want the beauty ofcypress.”Out west, at the Jackson Hole

Airport in Grand Teton National Park,Wy., vertical-grain cypress was usedfor acoustical ceilings in the newlyrenovated ticketing hall—even thoughthe architect first specified Douglasfir. “Unlike Douglas fir, cypress is

classified as a hardwood and it per-forms just as well, or better,” saysJonathan Robison, purchasing manag-er at Rulon Co., St. Augustine, Fl., aleading manufacturer of such ceilings.“It’s easy to machine and dries better,too.”Lower shipping costs to and from

Rulon’s plant are another importantfactor. “Cost and availability is com-parable to Douglas fir, but cypress islocal to us.” As architects strive for environ-

mentally friendly designs that qualifyfor LEED certification, they will con-tinue to look to cypress—a durablewood with lasting beauty.

MANAGEMENT Tips

Green youroperations

WHEN IT COMES TO GREENING the workplace, LBMdealers have a headstart advantage. Most dealers

already sell common green building products—from com-pact fluorescent light bulbs (CFLs) and automatic light sen-sors, to enviro-friendlier caulking and insulation. Greeningyour own business can be as easy as installing and usingproducts from your own inventory. Going green also means being aware of every product

being used in your business. Everything from the copypaper in the office to the toilet paper in the restrooms isavailable in a greener version. Get your employeesinvolved and look for ways to recycle, reduce, and reuse. Remember that waste isn’t just bad for the environ-

ment—it’s also bad for your bottom line.

Get a PlanOverall, the greatest savings relate toenergy efficiency—even simple, inex-pensive changes can reap big bene-fits. Higher savings will requiremore effort, but the payoff can beimpressive.

The first step is to develop agreen-business plan that covers

every aspect of your business: energy andwater efficiency, waste reduction, transportation,

computing, equipment efficiency, and building design.Then you can choose which options can be implementednow, and which can wait for later.

Light WiselyArtificial lighting accounts for up to 40%

of the energy consumed by businesses.Taking advantage of natural light lowersenergy costs, boosts retail sales, andimproves worker productivity and satisfac-tion. When natural light is not adequate, install

energy-efficient CFLs and LED desk lamps. AnLED bulb can last 60,000 hours, while a CFL

bulb provides 10,000 hours of light—significantly

more than the 1,500 hours provided by most incandescentbulbs. Replace older 1.5” fluorescent tube lighting withnewer 1” tubes and solid-state electronic ballasts.

Building Check UpPlug all leaks in your

building’s outer shell withweatherstripping or caulking. Use expandablefoam to fill any gaps. Workspace air qualityis also crucial. Good ventilation and low-

VOC paints and materials (such as furniture and carpet)will keep employees healthy. If you’re building a new commercial space or remodel-

ing an old one, consider environmental and cost-savingsoptions such as solar panels.

Save WaterInstead of personal-size water

bottles, provide filtered drinkingwater to encourage employees andcustomers to fill their own reusablecontainers. Better yet, consider areusable water bottle or coffee mug

as a promotional giveaway. Both itemstend to be kept and used regularly by

recipients, so your company name and logo will get noticedlonger.Periodically inspect pipes to make sure there are no

leaks, and quickly fix any leaks you do find. When it’s timeto spruce up the restrooms, install dual-flush toilets andautomatic faucets. These two products can go a long waytoward saving water and lowering costs.

Recycle, Recycle, RecyclePlace recycling bins in accessible,high-traffic areas and provide clearinformation about what can and can-not be recycled. When you receive

unwanted catalogs, newsletters, maga-zines, or junk mail, request removalfrom the mailing list before you recycle



percentage of post-consumer recycled content. Recycletoner and ink cartridges and buy remanufactured ones.

Control YourTemperature Comfort is a function of

temperature, humidity, and airmovement. Thermostat settingsof 3° to 5° higher can feel ascomfortable with fans. Install programmable thermostats to automate your

HVAC system and save significant amounts of energy.

Cut Costs for Transportation If your business has company-owned cars or a fleet of

vehicles, consider purchasing fuel-efficient or hybrid vehi-cles whenever possible—tax credits and special loan pro-grams are available.Develop a company-wide policy to eliminate unneces-

sary idling of truck engines. Auxiliary power units can heator cool the truck when stopped, allowing the main engineto be shut down. Look for shippers who belong to theEPA’s SmartWay Transport Partnership, which encouragesenergy efficiency that significantly reduces greenhousegases and air pollution.Greening your business is an ongoing affair. Once you

see cost savings, you’ll be motivated to do more. Gettingemployees involved will also keep the momentum going,so consider organizing a Green Team to meet monthly andbrainstorm new options. And don’t forget to spread theword—let your customers know that going green is a realpriority for your business.

the item.Recycle paper and refill computer ink cartridges rather

than send them to the landfill. When computers and printers stop working, make sure

that they are taken to a place that can recycle the parts.Donate unused equipment to a school or nonprofit andqualify for a tax credit.

Energy-Efficient ComputingComputers and peripherals consume a

surprising amount of power. During theday, set your computer to go to sleepautomatically during short breaks to cutenergy use by 70%. Remember, screen

savers don’t save energy. Make it a habit to turn off

your system—and the powerstrip it’s plugged into—when you

leave at night or on weekends. Just checkwith your tech expert first, to make sure it doesn’t need tobe on for backups or other maintenance.When it comes time to buy new equipment, invest in

energy-saving computers, monitors, and printers, and makesure that old equipment is properly recycled. Consider lap-tops that consume up to 80% less energy than equivalentdesktops. Inkjet printers use up to 75% percent less energythan laser printers.

Reduce PrintingThink before you print: could this

be read or stored online instead? Allkinds of documents—even employeemanuals—can be stored online, ratherthan copying and fil-

ing them. Besides reducingcosts for paper and ink,saving documents online

makes them easier to retrieve and update. Encourage communications by email,

then read and store them online insteadof printing. If you need to keep a copyfor legal reasons, or for various otherreasons, store it online. Reduce fax-relat-ed paper waste by using a fax cover sheetonly when necessary. Better yet, send,receive, and store faxes online. Many companies offer an electronic

alternative to notifications traditionallysent out by mail, especially when itcomes to invoicing. Request that all com-munications be sent via email rather thansnail mail to reduce the paper sent toyour business.

Print SmarterThe average U.S. office

worker goes through10,000 sheets of copypaper a year. Make it ahabit to print on both sidesof paper, or use the backof old documents forfaxes, scrap paper, or

drafts. Avoid color printing. Buy chlorine-free paper with a higher


SCOTT THOMAS OFFERS a word to thewise (and the not-so had better lis-

ten up all the harder). As marketingdirector of Parksite, a 10-location out-fit based in Batavia, Il., he’s a believerin that grand marketing guru’s pro-nouncement that “The media is themessage.”Thus, according to Thomas, spend-

ing advertising dollars solely onnewsprint ads, direct mail, TV andradio while ignoring faster, moreexpensive modern tools is living in thepast. He’s thinking digital these days.Convinced that digital marketing is

the wave of—never mind the future:the world of today—two years ago, heconvinced company management ofhis plan to exploit its potential. Sure,the company already had a website(duh) and Internet messaging (ditto),but how about expanding to include

Honing your(social) media skills

PARKSITE’S marketing director Scott Thomas is thinking digital these days to promote his company.

social media—explicitly, blogs,Twitter and Flickr?The sweet part of obtaining the go-

ahead was this: The campaigns wouldcost virtually nothing, beyond theexpenditure of time on the part of themarketing staff, who were 100%behind the idea. The rest of the organi-zation, not so much: “It’s still anongoing hurdle,” Thomas concedes.“Many associates still struggle withhow to incorporate these new market-ing tools into their daily roles anddon’t spend time communicating theseresources to their customers. But,”he’s convinced, “that will change. Asthings evolve, companies will realizethat those ‘kids with the iPads’ and thealways-online mentality will betomorrow’s customers. Additionally,as younger people come into thebuilding material industry, they will

COMPETITIVE IntelligenceBy Carla Waldemar

expect access to modern technologyand encourage them to be part of acompany’s marketing scheme. “The point is, today, vs. 15 years

ago, consumers have access to infor-mation from a bunch of differentsources, not just print and TV. Whatdealers and distributors have to under-stand is that a huge, huge percentageof homeowners do research onlinebefore even entering a store. Theyoften know about products before wedo, so we’d better join ’em: Get withit, or miss the boat,” he says. “Theworld moves too fast to rely on word-of-mouth these days. You can’t justwait for something to happen.”Thus, Parksite has embraced mar-

keting efforts via email and socialmedia, such as Twitter, via dailytweets, including product updates,links to helpful blog articles, industrynews and trends, and more. OnYouTube, it offers videos of, say,Dupont’s Tyvek and Nichiha’s fibercement panel applications—all aimed,says Thomas, at “relaying informationon our products.”But if a YouTube video plays in a

forest and no one….? Okay, that’swhere email and Twitter come in—ways to alert and encourage potentialviewers. Email also serves as an easy“and incredibly inexpensive” way todistribute the company’s newslettersand press releases.Here’s how Thomas has learned to

utilize those email alerts: “Our CRMdatabase includes architects, develop-ers, builders, remodelers, lawn & gar-den people, general contractors andlumberyards, and we use it to drivedemand for a product and to supportor drive customers.” Customizing a message for each

demographic segment of the list iseasy. Where the skill comes in is in


face. That’s how you build trust. Oursalespeople—with an average tenureof over 15 years—are very good incommunicating with their customers.”They also play their roles as whatParksite calls its building productsspecialists, meeting with builders,contractors, architects, what have you,to help in ways that range from correctuse of a product to designing customP-O-P displays. Parksite also offersclasses that deliver continuing-educa-tion credits to contractors and archi-tects.Okay, probably your salespeople

are similarly adept at one-on-one cus-tomer service. To take that to the nextstep, it’s time to supplement thoseefforts with (bite the bullet) the above-mentioned digital tools. Thomas offersthis advice for beginners: “Start with awebsite. Then, assemble a good emaildatabase, comprised of your customersand potential customers.”Step Three: look for an email mar-

keting service (they’re fairly inexpen-sive) to help you with design anddeliverability. To start reaching theup-and-coming generation, thinkabout a presence on Facebook (yourcompany has a page, certainly?) andTwitter. Finally, says Thomas, “I’m abig fan of two-or three-minute videos,your best marketing piece today.Remarkable! They’re easy to get to

and can reach millions of people. Andonce the message is out, people for-ward it and do the marketing for you.”Are there pitfalls to steer clear of,

Scott? Well, sure. But the good newsis, mistakes won’t cost you money.Counsels Thomas, “Don’t start it upand then not stick with it. You’ve gotto get people in your company tounderstand that it’s a team effort thatthey all need to participate in and pro-mote. And you’ve got to have consis-tency of content.”Parting words of advice: “Anything

worth doing is worth doing poorly,”Thomas jokes. “It won’t cost you any-thing. Just remember: Today’s market-ing is about being helpful, not intru-sive, and putting constructive informa-tion in the places where people go tofind it.” And that translates to socialmedia.For inspiration, peek at Parksite’s

blog at www.parksite.com/blog,tweets at www.twitter.com/park-site, or viewvideos at www.flickr.com/park-site.

crafting the subject line—“the mostimportant part of a message,” heinstructs: “That will determine if theemail even gets opened.” For an industry segment with

10,000 email addresses, Thomas triesout three different subject lines for apress release, sending each to 1,000people. “We can get instant feedback,so we know right away which one gotopened the most. Then we use thatsubject line for the other 7,000 in ourdatabase. You could never achievethat with a newspaper or TV ad,” hedeclares—“those media are a blindinvestment. With our CRM database,we reach thousands of people in min-utes, and we can control the contentand target the audience by industry,title or geography.”Digital content also has a lengthy

shelf life. “Your digital information isconstantly out there and doesn’t disap-pear,” Thomas contends. “In fact, it’spicked up by search engines likeGoogle, Yahoo and Bing, which helpsyour website search engine rankings.”Best yet, you can track hits to your

blog, tweet or video in real time, “soyour ROI comes in ASAP. By linkingto tracking websites, you can tell thenumber of viewers that day, thatmonth, whatever. For instance, linksto YouTube that we embed in emailcommunications can be tracked onbit.ly, which shows how often a spe-cific link was opened.” Bonus: “If aYouTube viewer tells his friends towatch it, too, he’s doing your advertis-ing for you, and for free.”Yet, don’t get marketing director

Thomas wrong. “Digital is just onecomponent of our overall marketingscheme,” he explains. “Still the mosteffective element I know is face-to-

Carla [email protected]

REGULARLY UPDATED blog can inform andfoster communication with customers.


AS LUMBER PRICES retreat tolows for the year, calls for pro-

duction to again conform to currentdemand levels are growing. This isreminiscent of 2008 and 2009,when the long slog to bring produc-tion and consumption into balancewas occurring. Eventually, in thelatter half of 2009, a balance wasrestored.Now that the housing stimulus

in the form of homebuyers taxcredits ended April 30, demand iswavering. The pace of housing startsand permits has the appearance ofslowing, builders are less confidentabout what the future holds, and thereal estate industry is forecasting atwo to three month period in whichhome sales will decline. Within thewood products industry, reports of adownturn in the business climate sur-faced early in the second quarter. As to whether the homebuilder tax

credit worked, it would be hard toargue against its success in the shortterm. Home construction was stimulat-ed, certainly more than what theindustry expected. Due in large part tothe stimulus, lumber consumptionincreased and so, too, did lumberprices, giving producers and the distri-bution chain a long-awaited dose ofprice volatility and profitability.It is also within reason to argue that

results from the tax credit, estimated ataround $35 billion, fell short of thecost. For example, the National Asso-ciation of Realtors estimates that outof the 4.4 million homes purchasedduring the stimulus period, only 1 mil-lion were purchased because of thestimulus. In other words, $27 billionwas spent on sales that would haveoccurred without the stimulus.It is widely believed that the tax

credit helped limit inventories ofunsold houses in the market, whichhelped stabilize home prices. A stabi-lization of home prices in turn limitedthe loss of equity in homes. Some esti-mates show the stimulus saving $2

End of credit, rising importshammer lumber prices

trillion in homeowner equity, equatingto an average of about $21,000 perhomeowner.As for home construction, it

appears the market has stalled, despiteaffordability figures that are quitefavorable. Future buying and construc-tion was likely pushed forward by thetax credits, giving the appearance of asustainable upward trend. Forinstance, new home sales in Maytotaled just 300,000 units on an annu-alized basis—32.7% below the AprilCensus Bureau figure of 446,000.Within the industry, signs of a trou-

bled economy, even while housingstarts increased, were evident in thewestern red cedar market. Even aftersignificant cutbacks in productionover the last couple of years, demandhas lagged. Not as strongly tied tohousing starts as other species, con-sumer spending on deck and other out-door projects remains limited.In southern pine treated lumber,

sales have stagnated since May, a timewhen buying is usually in full swing.Treaters report that their sales in Mayand June were down 10-20% com-pared to the same months last year.Disappointing treated wood salesplayed a large role in the steep andextended downturn in southern pinelumber prices. Even sales surroundingthe Memorial Day holiday, typically abig weekend for big box store sales,were below expectations for treaters.The slower pace of consumption is

not the only factor driving down fram-

ing lumber prices. Traders arepointing to June’s increase inCanadian lumber exports into theU.S. as a contributing factor. Theirpremise is not only are buyers see-ing more imports ship into thestates in June, they also expected inMay that imports from Canadawould multiply this month.Therefore, it is the well-foundedstance of traders that even the per-ception of greater supplies avail-able in June helped stifle demand in

May.Actually, a strong connection exists

between two of the largest factorsinfluencing lumber prices over thepast few months: the U.S. govern-ment’s housing stimulus and increasedimports from Canada. Simply put, thehomebuyer tax credit helped stimulatedemand beyond production levels,pushing lumber prices higher.Elevated prices led to the eliminationof duties on Canadian softwood lum-ber exports for June. Canadian exporters, taking advan-

tage of the suspension of export taxes,are now shipping at a pace of nearly1.0 billion bd. ft. into the U.S. for themonth, far exceeding the pace set ineither April or May. Again, it is awidely held perception within theindustry that those volumes enteringthe U.S. from Canada are now havinga negative influence on pricing.The big question from here forward

is whether the housing market canstand on its own two feet without thecrutch of more government spending.Whether the tax credit was successfulis certainly debatable, but it is clearthat the underlying economy was notstrong enough to gather much momen-tum from the stimulus.– Gary Zauner is editor of Crow’s

Weekly Market Report, the longest-run-ning source of prices in the NorthAmerican lumber and panel industry.Reach him at [email protected] or sign upfor a free trial subscription at www.risiinfo.com/crows.

INDUSTRY TrendsBy Gary Zauner, Crow’s Weekly Market Report/RISI


DEALER BriefsFifth-generation, family-owned

Collins Lumber Corp., Troy, N.Y.,has closed after 122 years in the samelocation.

Stock Building Supply ,Raleigh, N.C., has completed its pur-chase of the assets of BisonBuilding Materials, Houston, Tx.The operation will retain the Bison

name, under Tom Tolleson, who hasbeen with Bison for 10 years, mostrecently as chief operating officer.

Dells Lumber & Construc-tion, Wisconsin Dells, Wi., closed July30 after 63 years, with the retirement ofJohn and Joanne Van Wie.

Paitson Bros. Ace Hard-ware, Terre Haute, In., closed July 16after 88 years due to “remediation.”Owner Chuck Procarione hopes to

reopen, if his landlord pays to remodel,including repairing damages caused by18 months of a leaking roof.

Ace Hardware franchise ownersJoe Smith Jr. and his wife, Cindy,opened their 6th location last month inVineland, N.J.

Ace Hardware, Duluth, Mn., hasclosed after a 7-week liquidation sale.

Ace Hardware opens a 10,000-sq. ft. store this fall in Greensboro, N.C.(Doug Brown, managing partner).

27 Hardware & Supply, RockSpring, Tn., has opened store #2 in theformer Ace Hardware location inChickamauga, Tn.

Geneva Ace Hardware ,Geneva, Il., suffered roof damage froma June 29 fire.

Cleveland Ace Hardware,Raleigh, N.C., was opened July 9 byEric Jensen and Sarah McConnell.

Ace Fix-it Hardware ,Duncanville, Pa., will open its 7th storenext month in Oakmont, Pa.

Aubuchon Hardware closedits Port Henry, N.Y., store June 30.

Jim Junga, BZNDS Enterprise,is opening a 10,500-sq. ft. AceHardware early this fall in Saline, Mi.

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Deep SwampCypress

84 Closes 7 Stores, Reopens 184 Lumber Co. is closing seven

money-losing locations, reducing itscount to 281 stores in 35 states. Earlierthis month, however, the chainreopened its yard in Milton, Fl., closedsince April 2008.Closing are Macedonia, Oh.; Flor-

ence, Ky.; Wyoming, Mi.; Overlea,Md.; Michigan City, In.; Austin andMcAllen, Tx. Except for McAllen, said spokes-

man Jeff Nobers, “these are olderstores, with a small footprint and inmarkets that have either matured withminimal housing starts or that can beconsolidated into other existing storesmaking our overall market presencestronger.”

East Haven Adds 2 LocationsUS LBM Holdings subsidiary East

Haven Builders Supply, East Haven,Ct., has added two locations, in part-nership with their former owners.East Haven acquired 78-year-old

Millwood Lumber, Millwood, N.Y.,from Michael Malara, who will stayon to help run the business under theMillwood name.In addition, East Haven teamed

with Tom Mort to reopen a truss andwall panel plant in Branford, Ct.,which he had run as UniversalComponents Corp.

ProBuild Expands in EastProBuild has agreed to purchase

some of the assets of Chopp Lumber,Waldorf, Md., which supplies trusses,wall panels, and lumber to the residen-

tial and commercial markets in south-ern Maryland and Washington, D.C. “These are two very important mar-

kets for us,” said Paul Hylbert. c.e.o.of ProBuild. “The combination oftheir local market expertise andProBuild’s national scope will be oftremendous value to our customers inthese markets.”ProBuild also opened a new mill-

work facility in San Antonio, Tx.,which it said will serve the marketmore quickly and efficiently than itsmillwork operation in Austin, Tx.

Michigan Dealer Reviving,Remodeling Defunct StoreThis month, Peter Grebeck, owner

of Peter’s True Value Hardware,Milford, Mi., is reopening True ValueSouth Lyon Lumber, a year after theyard closed.He is remodeling the unit in the

Destination True Value format andadding power equipment rentals andservice, and party rentals.

Fire Again Rips Maryland YardYet again, fire has struck Bond

Lumber & Home Center, Lutherville,Md., consuming 90% of its inventory,as well as trucks and forklifts.Owner Bunnie Gleiman suspects

kids or drifters are to blame for theJuly 11 blaze. “This is, I think, fireNo. 7 in 13 years,” she said. “They’veall been arson.”“My life is gone. It’s horrible,” she

lamented. “This has been my life, myfamily’s life, since 1937 when mygrandfather started it.”


National Industrial Lumber Co., North Jackson,Oh., added a DC in Indianapolis, In.

Taylor Lumber, McDermott, Oh., was acquired by pri-vate equity f irm Resilience Capital Partners ,Cleveland, Oh.

Edwards Wood Products, Marshville, N.C., is build-ing a $2-million sawmill in Marion, N.C.

Wolf River Lumber, New London, Wi., was purchasedby Wolf Investment Acquistion LLC after threemonths in receivership.

Linda Hughes Dawson Lumber Co., Fall Branch,Tn., suffered a July 1 fire near its debarker.

Bowers Lumber & Components, Woodsboro, Md.,suffered a three-alarm fire July 20.

Fiberon is expanding manufacturing capacity at its facili-ties in New London, N.C., and Meridian, Id., due to growingdemand for its Horizon Decking. Production capacity hasalready grown by 300% since January.

International Barrier Technology, Watkins, Mn.,has acquired from Pyrotite Corp., Seattle, Wa., all ofPyrotite’s interest in its Integrally Treated Oriented StrandBoard technology used in creating fire-resistant OSB panels.

Georgia-Pacific agreed to purchase Parsons &Whittemore’s Alabama River and Alabama Pine pulp millsin Perdue Hill, Al. Terms of the deal were not disclosed.The deal, expected to close in the fall, also includes wood-

lands, a tall oil plant, biodiesel plant, pulpwood yard atDemopolis, Al., and chip mills at Elba and Jacksons Gap, Al.

Saunders Brothers, Locke Mills, Me., has sold H.A.Stiles Co. , Westbrook, Me., to H. Arnold WoodTurning, Mamaroneck, N.Y.Alcoa, New York, N.Y., agreed to purchase window/door

maker Traco, Cranberry, N.J.Boral USA, Roswell, Ga., acquired MonierLifetile

LLC, Irvine, Ca., from the Monier Group of Germany.MonierLifetile joins Boral’s US Tile clay roof tile business

as part of its U.S. Boral Roofing division.

AGR Tools, Austin, Tx., added a DC in Jacksonville, Fl.,for its AGR Stone & Tools USA subsidiary.Danzer Forestland, Darlington, Pa., received Forest

Council Stewardship certification for its 20 timber tractsin southwestern Indiana.

iLevel by Weyerhaeuser is now distributing VersatexPVC trim products from Wolfpac Technologies ,Pittsburgh, Pa., and Armor Coat trim and fascia.Wolfpac now allows dealers to order smaller quantities of a

variety of Versatex PVC trimboard products in one skid andstill receive a bulk discount.

Wolf has extended its distribution of AZEK products fromthe existing mid-Atlantic to include Georgia and the Carolinas.

SUPPLIER BriefsNew Research Supports Pro-Forestry Energy PoliciesTwo new American Forest & Paper Association-com-

missioned studies show that federal energy policies can bedesigned to conserve the high-paying forest products indus-try jobs that are so critical to rural communities, whileincreasing the supply of woody biomass to help meetrenewable energy production goals.“It is crucial that policymakers consider how best to uti-

lize America’s forest resource to both support good jobsand produce more renewable energy,” said AF&PA presi-dent/c.e.o. Donna Harman. “These studies show that ifdesigned carefully, national energy policies can both sus-tain the significant job-sustaining capacity of the forestproducts industry while expanding renewable energy.”The first study, “Jobs Creation in Pulp & Paper Industry

& Energy Alternative in the U.S.” by RISI, found that for agiven volume of wood, the forest products industry sustainsnine times as many jobs as stand-alone biomass energy pro-duction.The second, “Availability & Sustainability of Wood

Resources for Energy Generation in the U.S.” by ForiskConsulting, found that approximately 50 million dry tons ofunder-utilized logging residues and urban wood residualswas readily available, and more trees could be planted, toproduce more renewable energy without disrupting the bio-mass supply used by the forest products industry—whichsupports far more jobs than stand-alone energy production.“Our economy and our environment will be best served

if wood is used in ways that support the most jobs whileincreasing renewable energy use,” Harman said.


James OlsenReality Sales Training

(503) 544-3572james@reality- salestraining.com

Even (especially?) the successful man’s upward careerline is jagged. None of us will exit unscathed. Great sales-people reinvent themselves several times in a career.“If you can make one heap of all your winningsAnd risk it all on one turn of pitch-and-tossAnd lose, and start again at your beginningsAnd never breathe a word about your loss;If you can force your heart and nerve and sinewTo serve you long after they are gone,And so hold on when there is nothing in youExcept the Will which says to them: ‘Hold on!’”I’ve never met an entrepreneur or true salesperson who

didn’t have a little gambler in them. We cannot win bigunless we play big. We will never be champions if we areafraid to fail or will not pick ourselves up after failure. Thebest salespeople receive more no’s per month than the aver-age salesperson hears in a year!“If you can talk with crowds and keep your virtueOr walk with kings—nor lose the common touch”Communication is our skill set. As salespeople we need

to communicate with the truck driver, the receptionist, thebuyer, and the owner. We may deal with bankers in themorning and an on-line plant manager in the afternoon.We must project confidence without arrogance – a delicatelife-long pursuit of the professional salesperson.“If neither foes nor loving friends can hurt you;If all men count with you but none too much,”It is fine to love our customers, but too many salespeo-

ple fall in love with their customers! Wasting time on cus-tomers who “used to be” great is a common problem. I talkto grown men who pine after an erstwhile great customerinstead of getting on the phone or on the road to find newones! It is emotionally difficult to let go or reduce contactwith a past-great-customer we really like, butwe must keep ourselves in front of newpeople who can and will buy from us.To inspire others, we must be inspired.

Look for inspiration in family, spirituality,friends and co-workers. But if you wake upat 3:00 a.m. and could use a prayer,try “If.”

SALES MAKES USLOOK in to the

depths of our souland ask, “Am I evergoing to get anotherorder?” or wake ina sweat (hot orcold—sometimes itfeels like both) at3:00 a.m. asking themore profoundquestion, “Do Ihave what it takes?” Rudyard Kipling

(1865-1936) was aNobel Prize-win-

ning author born in Bombay and educated in England.Among his better known works are The Jungle Book andthe poems “Gunga Din” and “If.”“If” is where I turn for inspiration. It is more prayer than

poem. I encourage you to read it. Below are some versesand how they apply to sales.“If you can keep your head when all about youAre losing theirs and blaming it on you.”Focus. There are many non-essential-to-sales things

pulling at our attention. Focus on staying in front of cus-tomers. Stay away from the Internet and the water cooler,angry co-workers and bosses—stay in front of customers.“If you can trust yourself when all men doubt youBut make allowances for their doubting, too.”You’ll never sell that guy. You’ll never make it in the

sales game. There will always be more people telling uswhy we can’t than why we can. Always. Listen toKipling—listen to yourself—and have enough class not tostick it in their face when you do succeed.“If you can dream—and not make dreams your master,If you can think—and not make thoughts your aim.”Give me a moderately smart man of action over the

super-intelligent salesperson every time. Thinking, dream-ing and strategizing are important, but action is sales.“If you can look at Triumph and DisasterAnd treat the two imposters just the same.”Watch pro sellers. They don’t over-celebrate or over-

bum-out when things are great or miserable. They justchurn out sales work every day.“Or watch the things you gave your life to, brokenAnd stoop and build ’em up with worn-out tools.”

OLSEN On SalesBy James Olsen

If you can keep your head…


A WELL-KNOWN SAYING thatbecame popular during the recent

recession is that “A crisis is a terriblething to waste.” What that economistmeant, among other things, was thatduring a time of uncertainty andchange, companies have the opportu-nity and leeway to reposition in a waythey wouldn’t during good times. Over the last two years, markets

have shrunk or disappeared, produc-tion has decreased, and the industryhas consolidated. The companies thathave made it through are in a uniqueposition to redefine themselvesthrough better networks, workforcedevelopment, and crucial industryinformation. Companies can takeadvantage of the many programsoffered by the North AmericanWholesale Lumber Association toassist them.

Expanded NetworksCompanies have joined NAWLA

for decades for the networking oppor-tunities membership provides. Theseopportunities exist on a national andregional level, for both networkingand education.The NAWLA Traders Market was

started in 1996 with the primary pur-pose of connecting the producer to thewholesale distributor. In those 15years, the show has grown to averageover the last few years 570 wholesalebuyer attendees, 510 manufacturingrepresentatives, and 260 exhibitingcompanies. With a program gearedtowards creating network events, it isknown as a work-focused tradeshow.“Traders Market is a unique

tradeshow because it focuses almostentirely on the sale and distribution oflumber products. Because theexhibitors are primarily manufactur-ers and the attendees are primarily

New networks and traininghelp reposition wholesalers

wholesale buyers, Traders Marketprovides a very business focusedatmosphere,” says Gary Vitale, presi-dent of NAWLA. “As companies con-tinue to reposition themselves andsearch for new customers during theeconomic recovery, no other venuecan provide this affordability andvalue.”While some companies need to

constantly address their national net-works to thrive, some only need tofocus on regional networks to expandtheir customer base. Lumber whole-salers whose procurement and distrib-ution networks are located near totheir business have the chance to bemore active in regional meetings con-ducted by NAWLA.Each NAWLA regional meeting is

customized for that area. Some aremorning seminars with an industryexpert speaking on a timely topic

while others are evening receptionswith panel discussions. With atten-dance ranging from 40 to 120, theycan be a productive and manageablenetworking and educational tool.

Workforce TrainingAlmost every company has had to

cut back on its workforce lately. Withemployees being asked to performmore duties while also being moreproductive, companies have looked atdeveloping the workforce they have.They also have to ensure that any newhires learn the ropes in less time thanpreviously.The Wood Basics Course provides

a comprehensive overview of the for-est products industry, covering every-thing from seed to tree and from pro-duction to sales. Companies lookingto train their employees and invest intheir future have the option of sending

[NAWLA 2010]

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new or veteran employees to the course. Since 1981, almost 1,500 people have attended. For

many in the industry, the class establishes their initialindustry networks. “These new friendships have the poten-tial to benefit our company far into the future”, says MarkKasper, president and c.e.o. of Amerhart Ltd., Green Bay,Wi. “It shows our staff that we are making a real commit-ment to their education and advancement in their careers.”The next Wood Basics Course will be held Sept. 13-16

in Corvallis, Or. In addition, NAWLA is considering hold-ing a course in the Southeast in spring 2011.As the economy continues to recover, the ability to

make the sale will become increasingly important.Companies will specifically need to train their sales forceto differentiate itself from its competitors. Here again,NAWLA provides a special sales training class during the2010 Traders Market.David Kahle, of the DaCo Corp., will present his Top

Gun Survival School during Traders Market. Companieshave the chance to send their mid-level professionals tolearn how to prioritize markets, create new customers, andmake the close.With so many companies cutting travel budgets, howev-

er, some are looking for online training. Technology nowallows workforce training to be delivered directly to theoffice. NAWLA has hosted more than 40 webinars sincethe first in 2004.Webinars enable companies to invest in their workforce

with little commitment. Multiple employees can attendwithout leaving the facility. Usually lasting a little over anhour, they cover topics ranging from chain of custody cer-tification to marketing green products. NAWLA will host awebinar on Sept. 16 on credit management presented bycredit managers from various wood products companies.Companies today must work harder to make sure they

have a competitive edge over other businesses. The indus-try and the market have changed dramatically since therecession begun and possibly no other industry has beenmore affected. Companies looking for the advantage ofmore networks, a better trained workforce, and timelyinformation should consider the various benefits ofNAWLA’s programs.– More detailed information on the services and programs

offered by the North American Wholesale Lumber Association,including membership possibilities, can be found atwww.nawla.org.

The NAWLA Traders Market is the premier tradeshow devoted to the sale and distribution of lumber and related products, both softwoods and hardwoods. The Traders Market Advantage:

Opportunities

New this year:

Jim “The Rookie” Morris

www.nawlatradersmarket.com


THE TIMING OF THE HOUSING recovery hinges on two crit-ical factors: the size of the inventory of vacant homes

and the pace at which households are being formed. If weknow these data, then we could develop solid estimates ofhow long it will take to absorb the excess inventory ofvacant homes. In past cycles, the market was not saddled with the level

of vacant homes we currently have at the beginning of thisrecovery. In addition, solid recovery in the economy pre-vented household formations from straying far from thetrend levels. Consequently, demand for new homes (addi-tions to the housing stock) was quickly realized as therecovery unfolded. In the current market, after more than a decade of

excess production, we are saddled with a significant vol-ume of vacant homes and the slow pace of economicrecovery (which is in part due to the absence of a reboundin housing) is stifling job creation and putting downwardpressure on household formations.Focusing here on the vacancy issue, our inability to

generate a solid estimate for vacancies arises from theinherent errors in the reported data and the difficulty in dif-ferentiating between total housing stock and economicallyviable housing stock. Errors in the reported data are due tothe facts that the data are only updated once every 10 yearsduring the Census and that in the interim years they arebased on estimates that at the time seem quite confusing.

RISI economists:Housing stock and vacancy

By Bob Berg, RISI

As a stock concept, housing stock at the end of a year isequal to housing stock at the end of the previous year plusadditions (housing completions and mobile homes) minussubtractions (demolitions) during the year. The table on page 26 contains the U.S. Census housing

stock estimate from 2002 (when the data was last updatedwith the results of the 2000 census) through 2009 alongwith the housing completions (reported by the U.S.Census) and mobile home production (reported by TheInstitute for Building Technology & Safety). Given thehousing stock and additions data (completions and mobilehomes), one can calculate the demolitions used in develop-ing the housing stock data. These demolition data are pre-sented at the top of the table. The confusing part of these data is the fact that the

demolitions are negative in 2006-2008. Over this period, ineffect, 1.44 million housing units were added to the inven-tory as a result of “demolition.” During the very strongpeak demand years in the 1970s, we experienced this samephenomenon as alternative buildings (i.e., old factories)were converted into housing faster than the rate at whichhouses were lost to natural and intentional demolition. However, during the period 2006-2008, demand turned

lower and it became increasingly evident that excess hous-ing inventory was built. Consequently, one has to questionwhether the apparent net additions (rather than removals)reported under the demolitions category actually occurred.Then in 2009, apparent demolitions shot up to just over 1.0million units, which was almost three times the averagedemolition pace in 2002-2005. The average demolition ratein 2006-2009 was 0.01% of the housing stock, which com-pares to a rate of 0.3% per year in previous years. The table also contains the housing stock estimated by

holding the demolition rate at 0.3% for the entire period,the observed average in 2000-2005. Using this demolitionassumption, the housing stock at the end of 2009 would befully 1.70 million units fewer than reported by the U.S.Census. The analysis gets even more interesting becausethere are reports of increased intentional demolition (i.e.,Detroit and some of the central valley homes in southernCalifornia). If you boost the demolition rate to just 0.5% in2008 and 2009, the difference between the inventory level

[NAWLA 2010]


from the seat of a motorcycle put theportion of homes for sale at a mini-mum of 30%). The local economy hasbeen in decline for years, in conjunc-tion with deteriorating commercialfishing and forest industries. Yet it isclear that the housing stock in thewaterfront port towns had been main-tained (“quaint”). These towns are hard to get to

from major metropolitan areas, butthe drive to secure second homes onthe ocean at a reasonable price wasmost likely the primary cause for theapparent investment in the housingstock in these communities.Consequently, these vacant housingunits are not economically viablestock in the current market. Similarly,developments in the central valley ofCalifornia that are hours from majoreconomic centers will not be econom-ically viable for many years. It is nearimpossible to estimate what share ofthe housing stock at this point in timeis not economically viable. Most like-ly, the economically unviable share ofthe housing stock is higher than “nor-mal,” which adds to the apparentvacancy rate. So what is the real vacancy num-

ber? To get a more certain count, wewill have to wait until the results ofthe 2010 census are published (proba-

calculated here and the one reportedby the Census increases to 2.39 mil-lion homes. Meanwhile, rough calculations of

vacancy using the U.S. CensusBureau’s data on vacant for sale andfor rent data puts the “excess” vacan-cy at around 1.75 million units. Thisis arrived at by calculating the aver-age share of housing stock that isvacant for sale and for rent prior tothe run-up in the last decade (about3.6% of housing stock) and subtract-ing this from the actual in the lastavailable quarter (4.9%) and applyingthe difference to the total housingstock. This estimate of excess inven-tory of houses falls within the adjust-ed range of homes that may have beenlost to demolition (1.70-2.39 million). And then there is the “economic”

housing inventory, which is nearimpossible to estimate. In areas of thecountry where the population andeconomy are contracting, much of theexcess housing stock will never befilled. Hence the logic behind razingempty homes in Detroit. On a recent trip through the north-

ern-most port towns of Maine, closeto the New Brunswick border, thenumber of “for sale” signs in eachtown was spooky. (Very unscientificestimate at speeds of 25 to 35 mph

bly in late 2011/early 2012). In themeantime, we continue to use currentCensus data to develop our housingforecast, but we are skeptical aboutthe accuracy of the analyses of excesshousing inventory and we are keepinga weather eye on housing develop-ments that could lead to a faster andstronger recovery in housing thanbearish assessments of inventorywould allow.Regarding the economically viable

stock, only when housing productionturns up significantly will we knowwhen we have hit the limits of theeconomical housing stock. This willmost likely be sooner than whenvacancy rates reach their “normal”pace. In combination, these factorsprovide a glimmer of hope that hous-ing will recover sooner and strongerthan our basic analysis indicates.Nevertheless, prudence requires thewood products industry to plan con-servatively, but to hope for a better-than-consensus outcome.– Bob Berg, is principal economist for

North American lumber at RISI, a leadinginformation provider for the global forestproducts industry. RISI works with clientsin the wood products, timber, pulp andpaper, tissue and nonwovens industries tohelp them make better decisions. VisitRISI at www.risi.com.

U.S. Housing Stock Estimates(thousands)


THE SUPPLY CHAIN for lumber andbuilding materials can be long

and complex, with many variables. Think about it. The production

process alone includes timber, lumberproduction, transportation, secondarymanufacturing, distribution, retail,and installation. That doesn’t eveninclude the supporting services suchas credit, inventory, taxes, regulatorycompliance, and marketing. Makingsure a product finds a market can be

The value ofa wholesaler

significant shift to just-in-time deliv-ery of products becoming the industrystandard. Each company has to runlean to even consider making a profit.Wholesale distributors offer this abili-ty in quantities ranging from multiplerail cars down to individual pieces.By working with a wholesaler, abuyer can have faster inventoryturnover to lower costs and free upmuch needed cash for further invest-ment.

daunting. Wholesale lumber distribu-tors play a vital role providing suppli-ers and users the value everyoneneeds to succeed.As the central link of the supply

chain, wholesale distributors have apart in supply meeting demand. Intoday’s fast-moving economy, whole-salers can help lower procurementcosts, broaden product selection, andadd value to products.The last few decades have seen a

[NAWLA 2010]


A major benefit of wholesale dis-tribution is the wide product selectionthat a buyer would otherwise have toreceive from multiple sources.Instead, it can be done with one-stopshopping. Because wholesalers arebuying from many different produc-ers, buyers can tailor their productsand species to the needs of theirclients at a much lower cost. In addition to offering a wide

range of products, wholesalers canalso provide unique value-added ser-vices, such as packaging, remanufac-turing, and treatments. Buyers canoften receive innovative product train-ing and services to help sell products.Wholesalers don’t just bring value

to the buyer; they also can help a pro-ducer succeed. Manufacturers oftenhave to spend years establishing newdistribution networks or adaptingexisting ones. Wholesalers have along history of knowing buyers andthe markets. By working with awholesale distributor, a producer canfocus on its core business model.As niche markets increase in

importance and profitability, produc-ers and suppliers need expertise andexperience to create customization,branding, and marketing for products.Wholesalers can often remanufacturea product in response to marketchanges and also have experience increating promotional campaigns.Wholesalers function as a crucial

link between the manufacturer and theretailer, adding value along the supplychain. They can help ensure that theright product meets the right market atthe right time.

Technology helps LBM businessesweather economic storm

By Jim Hassenstab, DMSi


BUILDING MATERIAL business lead-ers have been forced to make

some tough decisions in the currentrecession. Although a natural instinctis to cut spending across all depart-

ments, it’s not always the best one.Technology investments can actuallyhelp your business weather throughthe current economic storm.

[NAWLA 2010]

LUMBER WHOLESALERS are cutting costs by employing the latest logistics technology, such asAppian Logistics’ Direct Route, which creates the most economical delivery routes given layovertimes, multiple day time-windows, DOT drive time regulations, and other factors.

Increase productivity whilereducing costs

Information systems streamlinebusiness operations and help you domore with less. By investing in newtechnologies and automating businessprocesses, you can run your businessmore efficiently. It may even be agood time to consider moving yoursystems “into the clouds.”Cloud computing, also known as

Software as a Service (SaaS), is thefuture of technology. It’s a viableoption for many companies to reducecosts and eliminate many of the issuesthat can accompany traditional soft-ware models. With a minimal invest-ment, customers can access softwareover the Internet and never have toworry about investing in new infra-structure, training new personnel, orlicensing new software.“I first saw software hosted through

the Internet at a NAWLA tradeshowand its potential was obvious to me,”says David Zappone, general managerof Timber Trading Group, Worcester,


Ma. “The SaaS program allows everyone in our office to bemore mobile, more productive, and offer customers real-time answers when out of the office.”

Gain competitive advantageand customer loyalty

With both businesses and consumers strictly evaluatingtheir budgets and spending, it is more important than everto differentiate yourself from the competition. While yourcompetitors are cutting their technology budgets, you havethe opportunity to expand market share. By leveragingtechnology, you can create innovative products and ser-vices or implement a new business approach to increasecustomer loyalty.Optimizing the transportation process is one of the most

impactful ways to reduce overhead. A centralized dispatchsolution can significantly cut transportation costs and maxi-mize profitability of sales. In addition, these solutionsimprove customer service by reducing wait time and elimi-nating backorders. “We feel that our ODT (order delivery tracking) soft-

ware gives us the real-time information we need to makesound financial and customer service decisions that are socritical to our business, especially in the current economicenvironment,” says Alan Harwood, c.f.o. of EppersonSpecialty Woods, Statesville, N.C. “ODT has become acritical component within our daily operation, as well as acontributor to the long-term profitability of our business.”

Know your businessIn the modern business world, knowledge is the single

most important factor that can make or break a company. Agood business intelligence system will help monitor variousdata, such as sales, profits, amounts lost in small transac-tion fees, and amounts paid originally. By pinpointingexactly where costs need to be cut or new systems put inplace, your company is poised to increase profitability.Viewing and interacting with data is now easier than

ever before when using business intelligence applications.Information that used to take hours to compile is now just afew clicks away, allowing business owners to make keydecisions quickly. Business intelligence applications allowusers to interactively zero in on answers to business perfor-mance questions, instantly detect trends, and respond to theever-changing events occurring in distribution.“Before, if someone called asking for information, I ran

to the cabinet to pull their file,” says Mike Finn, vice presi-dent of SEEMAC Inc., Carmel, In. “A report was only up-to-date the day it was printed. Today, I tap into the comput-er to retrieve real-time information. If everyone is doingtheir job, the information is always current.”

Invest in the futureThe economy will rebound eventually, and you need to

be ready to hit the ground running when it does. Whilebusiness has slowed and workloads have decreased, it is aperfect time to plan and implement IT infrastructureimprovements. This way, when business does pick up, youwill be better prepared and able to respond to growth.In business, as in nature, the strong survive. Rather than

trying to coast through the down economy, building materi-al companies should consider ways to strengthen, improve,and grow business. This will better your chances of “sur-vival” and enhance the future of your company.– Jim Hassenstab is c.e.o. of Distribution Management

Systems Inc., Omaha, Ne. He can be reached at (800) 347-6720or [email protected].


THE FOLLOWING SCENARIO playsover and over again in every one

of your sales territories every day.And it costs you hundreds of thou-sands of dollars annually.I was working with one of my

client’s salespeople. The client was anHVAC commercial contractor. Thesalesman had an appointment with aprospect who had called and requesteda visit. As we introduced ourselves,the prospect said, “We added on officespace to our building a couple yearsago, but we never expanded the airconditioning capacity. We’d like toget an idea of what it would cost to doso now.”The salesman asked to see the

space. There, he took out a tape mea-sure and note pad, dutifully measuredthe space, and outlined it in the note-book. Then he asked to see the exist-ing unit. The prospect took us up intothe attic and pointed out the unit, rest-ing on a platform off to one corner.

The salesman gingerly worked hisway over to it, inspected it carefully,took some more notes, and slowlyworked his way back to where westood. “I have everything I need,” hesaid. “Can I fax you a detailed quotein the next 24 hours?”“Sure,” said the prospect. The

salesperson prepared to leave, intenton going back to the office, workingout the detailed quote, and then faxingit to the prospect.I felt the need to intervene. “Can I

ask a question?”“Sure,” said the prospect.“If you like the quote, what is the

prospect of you placing an order in thenext few weeks?”“Oh, none at all,” he said. “The

boss just wants to get an estimate. Ifit’s within reason, he’ll put it on thebudget and do it sometime next year.”“So,” I said, “you really don’t need

a detailed proposal at this point, doyou?”

“Not really. I just need a ballpark togive to the boss.”I turned to the salesman. “What’s a

ballpark price?”“$3,500,” he said.The prospect thanked us, and we

were on our way.Let’s consider what happened. The

salesperson had never been trained inthe basic sales competencies of askinggood questions and qualifying theopportunity. Instead, he consideredhimself to be “a problem solver.” He

[NAWLA 2010]

Stop the bleeding!Why an uneducated sales force is

the biggest single drain on corporate profitsBy Dave Kahle, DaCo Corp.


looked for a problem and intended to solve it by creating adetailed quote. Of course, the prospect didn’t want or needthat quote.If I had not intervened, the salesperson would have gone

back to the office and spent several hours preparing thequote. He would have faxed it to the customer and consid-ered himself to have done a fine job. At the end of the day,he would have thought of himself as a competent salesper-son, having put in a good day’s effort. His manager wouldhave seen the quote, added it to the list of potential busi-ness, and also considered it to be a good job, well done.The truth was, of course, that the salesperson didn’t have

a clue. While he thought he was doing a good job, he total-ly misread and mishandled the situation. He didn’t evenknow what he didn’t know. His view of his competencywas based on a standard that was irrelevant.The unvarnished truth is that particular salesperson

would have cost the company hundreds of dollars that dayin time misapplied—a couple of hours spent in the officepreparing a quote for an opportunity that didn’t really exist.Not only would there be direct costs of the salesperson’stime misapplied, but also the opportunity costs of other realopportunities that could not be generated by the salespersonwasting his time in the office.But those costs were invisible, hidden not only from his

eyes, but also from his company’s management and execu-tives. They saw a quote uncovered and delivered, instead ofa sales opportunity misinterpreted and mishandled.In this example, the salesperson had never been trained

to qualify the opportunity. That’s just one example of thelack of appropriate training. Similar costs are routinelyincurred in almost every sales call by untrained salespeo-ple. Consider the cold calls on prospective customers thatare mishandled. Or the opportunities with current cus-tomers that are never fully understood. On and on it goes.This is the greatest single cost to your profitability.

Multiply that one invisible mishandled sales call times thenumber of calls each salesperson makes a day, times thenumber of salespeople in your organization, times the num-ber of days in the year, and you begin to get a picture of theenormity of the cost.And it’s not just time misapplied, as in this example.

Imagine the costs of deals that should have been gained andwere not due to a lack of sales competencies. Multiply thattimes the same variables as above and see what kind ofnumber that brings you. Clearly, uneducated, untrainedsalespeople are bleeding the profits from your business.It’s not their fault. In this case, for example, the sales-

person learned his job by trial and error, and he naturallydefaulted to a role with which he was comfortable. Since hewas a technical person by nature, he chose to see everysales situation as a technical problem to solve. Naturally.He just didn’t know any better. And the reason he didn’t

know any better is that no one taught him. Far too manycompanies hope their salespeople will somehow figure outhow to do their jobs effectively on their own. Unfortunatelythat hope is misplaced, serving as a rationale to justify alack of investment in their salespeople or ignorance abouthow to do so.If that describes you, stop the bleeding before it’s too

late. Educate your sales force in basic sales competencies.– A presenter at the upcoming NAWLA Traders Market, Dave

Kahle is an author, consultant and trainer who helps his clientsimprove their sales productivity. Reach him at the DaCo Corp.,Comstock Park, Mi., (800) 331-1287, www.davekahle.com.

REVAMPED NAWLA Traders Market makesa return engagement this fall at Chicago’sfamed Hyatt Regency.


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Richardson TimbersSince 1949

toll free (877) 318-5261 phone (214) 358-2314 fax (214) 358-2383

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NAWLA Traders Marketplans show #15

TRADER’S MARKET DIFFERENTIATESitself by having a business-only

focus, which companies often look forduring tough economic times.Networking opportunities remain thefocus, as does the production and dis-tribution part of the supply chain, butcompanies will see some changes atthe 2010 show Nov. 3-5 at the HyattRegency, Chicago, Il.“Traders Market has been very

[NAWLA 2010]


while also juggling the responsibili-ties of a family and a career.”The Traders Market show contin-

ues to be a supply and distributionshow with a business focus, butNAWLA is evolving the show tomeet the changing needs of its mem-bers and the industry. This year, theyhave opened full online registrationfor the first time, giving companiesthe chance to have an all-in-one shop-ping experience with the ability to payby credit card. – Complete information can be found

at www.nawlatradersmarket.com

for the Disney movie The Rookie.Many people may remember the storyof a 30-something high school coachwhose players urge him to try out forMajor League Baseball. Jim did justthat, and he made it to The Show. Hewill talk about overcoming enormousodds to succeed, something far toomany lumber companies have had todo the last few years.“Sometimes the word ‘inspira-

tional’ is overused, but Jim personi-fies the importance of having a dreamand the desire to reach it,” saysVitale. “Making the majors at anytime is nearly impossible. Jim did it

successful, but we continue toincrease the value of it,” saysNAWLA president Gary Vitale. “Thisyear, we have added the New ProductShowcase area, and the Spotlight onExhibitors will return in an improvedformat. We are also planning an out-reach campaign to attract a broaderattendee base and to increase the pro-gram for global trade.”Traders Market started in 1996

with 100 exhibitors. Since then, theindustry has evolved and so hasTraders Market. The 2010 tradeshowportion will be held on Thursday andFriday. To save companies money ontravel costs and allow more network-ing time, NAWLA has decided todecrease the number of educationseminars presented in the days pre-ceding the show and instead offer justone—an eight-hour sales trainingseminar by David Kahle.NAWLA also wanted the 2010

show to have programming for moreof the supply chain and had discussedhaving an AIA-approved continuingeducation course at the show for localarchitects. The topic of the course willbe the environmental benefit of usingwood in construction.Another addition to the show is a

New Product Showcase. This areawill be located in the middle of thetradeshow floor and will give compa-nies the opportunity to showcase newor rebranded products to buyers anddistributors. Openings are limited tocompanies that are also exhibitors.NAWLA also will launch its

revamped Magellan Network at theannual breakfast during TradersMarket. The Magellan Network willbe a special program within the mem-bership of NAWLA, focusing onglobal trade issues for both exportersand importers. The final program ofspeakers for the panel had not beenreleased before this issue was printed.This year’s speaker luncheon year

will feature a well-known keynoter—Jim Morris, the real life inspiration

15th annualNAWLA

Traders MarketNov. 3-5

Hyatt Regency,Chicago, Il.


ASSOCIATION Update

timber tour Sept. 22-24 in Adirondack Park. Long Island Lumber Association has a board meeting

Sept. 14 at Villa Lombardi’s Restaurant, Holbrook, N.Y.Mid-Hudson Lumber Dealers Association’s annual golf

outing is Sept. 27 at Powelton Club, Newburgh, N.Y.Eastern New York Lumber Dealers Association hosts its

annual meeting Oct. 23 at Gideon Putnam Resort, Saratoga,N.Y.New York & Suburban Lumber Association kicks off its

120th annual meeting Oct. 1 at Terrace on the Park,Flushing Meadow Park, Queens, N.Y.Northeastern Lumber Manufacturers Association

will host a golf outing Sept. 17 at Wentworth Golf Club,Jackson Village, N.H.Southern Forest Products Association is holding its

annual meeting Oct. 24-26 at the Mansion on Forsyth Park,Savannah, Ga. Kentucky Forest Industries Association has planned a

golf & fishing outing Aug. 26 at Barren River State Park. Indiana Hardwood Lumbermen’s Association will

hold its “Fun Shoot” event Oct. 9 at Triple H Gun Club,Linton.National Hardwood Lumber Association has signed

Sarah Palin as the keynote speaker at its Oct. 13-16 annualconvention and exhibit showcase at the Hyatt Regency,Vancouver, B.C.NHLA established a new “partner” membership catego-

ry that recognizes businesses not headquartered in NorthAmerica that are engaged in the manufacture, custom kilndrying, wholesaling or distribution of hardwood lumber,veneer, plywood, and related products. The new categoryfurthers the association’s global perspective of “StrongRoots. Global Reach,” which was adopted two years ago.Hoo-Hoo International will hold its international con-

vention Sept. 10-14, hosted by the Sioux Valley Club #118at Sioux Falls-City Center Holiday Inn, Sioux Falls, S.D.North American Deck & Railing Association will host

its annual Deck Expo, in conjunction with the RemodelingShow Sept. 15-17 in Baltimore, Md.

Blaze Destroys Kentucky KilnsA June 23 fire at Forest Products Inc., Gray, Ky.,

destroyed three of its nine dry kilns and about a quarter of amillion ft. of lumber. Losses are estimated between $1 mil-lion and $2 million.The blaze started from a spark when repairmen were

welding a steam pipe, and spread quickly.About 60 firefighters were on the scene for five hours in

sweltering temperatures. Inside the kiln building, tempera-tures rose to 1,000˚, said fire chief Darryl Baker. “It waspretty hot and pretty intense and (the lumber) is perfectlystacked to burn,” he said. “We had one firefighter that, itgot so hot that it melted the bottom of his boot and the solecame off of his boot.”All 115 employees were back to work the next day, and

Forest Products plans to rebuild to full capacity.

Florida Building Material Association will honorLinton Tibbets and Charlie Stottlemeyer at the Old-TimerRecognition Luncheon held during its Sept. 22-24 annualconvention and show at Walt Disney World’s DolphinConvention Center, Lake Buena Vista, Fl. Wisconsin Retail Lumber Association named Kevin

Denson, Dalton Lumber & Supply, Dalton, its OutstandingLumber Person of the Year.Denson recently was elected president of a Vertack

Group buying co-op, which consists of nine independentlyowned lumberyards in Wisconsin.Kentucky Building Materials Association has sched-

uled its annual Congleton Cup golf tournament for Sept. 23at Oldham County Country Club, La Grange. A receptionfollows the event, which benefits the education foundation.Illinois Lumber & Material Dealers Association gath-

ers Sept. 23 for its annual Cahokia Golf Outing at SpencerT. Olin Golf Course, Alton.Southern Building Material Association will offer a

webinar on maintaining a safe, clean workplace Sept. 14and Sept. 30.Northeastern Retail Lumber Association is closing

out the summer with a variety of business and recreationalactivities.Northeastern Young Lumber Execs have planned an

Aug. 19 summer outing to watch the Red Soxs vs. Angelsat Fenway Park, Boston, Ma. The group then sets out on a

DEALER BriefsMenards applied to construct a truss plant in Terre

Haute, In., and is building an additional warehouse at its SiouxCity, Id., home center.

Lowe’s closed its 13-year-old store in Lilburn, Ga., July12 and had its proposal for a 145,000-sq. ft. store in Brighton,Ma., rejected by local planning officials for the second time intwo years.

Habitat for Humanity opened an 18,000-sq. ft.ReStore discount LBM outlet early this month in Oshkosh, Wi.,and closed its ReStore in Greenwood, S.C., due to insufficientdonations.

ABC Supply Co. is now distributing LifeTimeLumber composite decking in Illinois, Iowa, Minnesota, SEMissouri and Wisconsin.

Ward Lumber Co., Jay, N.Y., recognized EmeryWaterhouse, Portland, Me., as its Vendor of the Year.

Anniversaries: Swartz True Value, Newton, Ma., 120th… Keim Lumber, Charm, Oh., 100th … Mead Lumber,Columbus, Ne., 100th … Hundman Lumber, Blooming-ton, Il., 60th … Oscar’s Hardware, Schnitzelburg, Ky.,60th … Collins Supply, Athens, Al., 50th.


Bill Parrilla was named director ofinternational trade & developmentat International Forest Products,Foxboro, Ma.

Carter Zierdan, ex-Richmond Inter-national, now specializes in soft-wood boards and millwork prod-ucts at Diorio Forest Products,Ashland, Va.

Ray Barbee, ex-Roseburg ForestProducts, has been named seniorv.p. and general mgr. of RISI’swood products, timber and biomassbusiness areas.

Jonathan D. Mize has been namedpresident and chief operating offi-cer of Blish-Mize, Atchison, Ks.,succeeding John H. Mize, whocontinues as c.e.o. and chairman ofthe board.

Steve Wilson, ex-HD Supply, hasjoined Stock Building Supply,Raleigh, N.C., as director of itsColeman Floor business unit.

Henry Spelter, ex-Forest ProductsLaboratory, will open WoodFutures Insights, McFarland, Wi.,to offer market studies, forecasts,and analyzes.

Mike Delaney, ex-New EnglandBuilding Supply, has openedNortheast Lumber Supply, Brock-ton, Ma.

Dennis Melczarcyk has rejoinedBiewer Lumber, in sales for its newDC in Lansing, Mi.

Tim Kunkle, ex-Jamieson FenceSupply, is now a marketing special-ist for Capital Lumber, Dallas, Tx.Dan Powell is a new account mgr.

Matt Strader, ex-Decor Corp., hasjoined the inside sales team atHorizon Forest Products/LongFloor. Charleston, S.C.

Tom Wood has joined Buck Lumber& Building Supply, Charleston,S.C., and Charleston Wood Indus-tries as v.p. of contractor sales.

Mark Cappo, ex-Home Depot, hasjoined Snavely Forest Products,Baltimore, Md., in customer sup-port and product sales develop-ment. Bill Byrd, ex-National Nail,and Johnny Rodriguez are new tooutside sales in Houston, Tx.

Henry Herrera is the new store mgr.of McCoy’s Building Supply, DelRio, Tx.

MOVERS & Shakers Rita Kahle, executive v.p., AceHardware Corp., Oak Brook, Il.,has retired after 23 years with theco-op.

Corey Hiebert has joined SawarneLumber, Richmond, B.C., handlingNorth American sales.

Bruce Duncan, Dow Chemical Co.,Midland, Mi., has been namednational account mgr.-constructionservices of Dow Roofing Systems.

Ray Sgro has been promoted to mgr.of the casement window depart-ment at Gorell Windows & Doors,Indiana, Pa. Ron Faught, ex-PolyVision, now oversees the glassdepartment.

Kevin O’Meara, chairman, AtriumCos., Dallas, Tx., has added thetitle of c.e.o. He replaces GregoryFaherty, who has retired.

Matthew J. “Matt” Espe was namedc.e.o. and president of ArmstrongWorld Industries, Lancaster, Pa.

Myra Lee is the new director of mar-keting communications for Lenox,East Longmeadow, Ma.

Wright M. Off is the new deprecia-tion analyst at Mungus-FungusForest Products, Climax, Nv.,according to co-owners HughMungus and Freddy Fungus.

YOU CAN’T STOP THE RAIN. YOU CAN, HOWEVER, OUT-ENGINEER IT.


Weather happens. Wet wood swells. Such are the facts. The good news is, at last there’s a solution engineered

to address the challenge head on. PointSIX™ Flooring and pointSIX Durastrand Flooring feature a patented tapered-edge technology that offsets the effects of moisture, eliminating the need for sanding.

Rain? We say, bring it on. Download your free white paper: www.pointsixflooring.com

Cost more? No. Work better? Yes. End of story.

TTHE OIL SPILL IN the Gulf of Mexico is a huge environ-mental calamity, but it should serve as a wake-up call

for the LBM supply chain for another reason. Why? The spill will certainly have an impact on local

economies and local LBM dealers. But the spill is emblem-atic of much a bigger issue—the end of cheap oil. And thatwill shape the future of this industry, bringing tough chal-lenges and green opportunities.Many analysts are pointing out that most, or all, of the

world’s easy oil has been extracted and what’s left is vastlymore challenging, energy intensive, and expensive toobtain—pumping oil from 5,000 ft. deep on the floor of theGulf is but one example. Meanwhile, according to a U.S.

GREEN RetailingBy Jay Tompt

Oil dependency andthe LBM supply chain

Department of Energy report, new oil discoveries are lag-ging consumption. Some analysts have pointed out that thepoint of peak oil production may have been reached, ormay be reached soon. Peak oil, as the phenomenon is known, is based on the

work of Shell Oil geologist M. King Hubbert, who showedthat just as an oil well reaches a peak in production longbefore the oil deposit runs dry, so too, does an oil produc-ing region have a peak in its production curve. Once thepeak is reached, production volumes flatten out, thendecline. Add the fact that worldwide demand for oil isgrowing (car sales in China and India are going throughthe roof!), and if we are at or near a peak oil situation, thenoil prices will surely rise and perhaps very rapidly. The LBM supply chain is predicated on cheap trans-

portation costs. When fuel prices rose dramatically duringthe summer of 2008, many distributors and dealers tookhits to their already small margins. While that price spikewas due, at least in part, to Wall Street speculators, it pro-vided a taste of what an expensive oil future will bring—higher transport and commodity costs, and marginal busi-nesses going bust.So, how can you prepare and create resiliency within

your organization? First, start shifting your own productmix. Identify those products most vulnerable to rising oilprices and find better alternatives such as local and greenproducts. This will also help you meet the rising demandfor such products. Look especially at those solutions thathelp your customers (or their customers) become more sus-tainable or self-reliant. Also, find opportunities to supply a greater range of

need within your community or operating area. If gas

prices rise dramatically, your customers will be looking forone-stop shopping.Dealers and distributors should also be actively seeking

ways to reduce gasoline or diesel use within their ownoperations. Electric vehicles or diesel trucks that run onlocally sourced, recycled cooking oil might be viableoptions. Increasing drop ships, from manufacturer to dealeror from distributor to end-user, will help, too, but onlymarginally. Finally, get involved in community efforts to create

local resiliency to oil energy shocks. Transition U.S.(www.transitionus.org) is a new and growing network ofgroups throughout the country—69 at last count—aimingto find ways within their own communities to reduce theirdependence on oil. Groups likethese are gaining influence withlocal policy makers, and theirefforts naturally support greenbuilding and like-minded localbusinesses. Your involvementwill help you identify emergingopportunities, make importantconnections within yourcommunity, and get sup-port for reducing yourown oil dependency.



Weather happens. Wet wood swells. Such are the facts. The good news is, at last there’s a solution engineered

to address the challenge head on. PointSIX™ Flooring and pointSIX Durastrand Flooring feature a patented tapered-edge technology that offsets the effects of moisture, eliminating the need for sanding.

Rain? We say, bring it on. Download your free white paper: www.pointsixflooring.com

Cost more? No. Work better? Yes. End of story.

Jay TomptManaging Partner

Wm. Verde & Associates(415) 321-0848

[email protected]


AH, SUMMER… THAT WONDERFULtime of year when everything

slows down—including your business.Your clients, employees and vendorsare on a seemingly constant rotation ofvacation time. No one’s ever in whenyou need them. The easiest thing to do, then, is just

accept this state of affairs. After all,there is a gentlemen’s agreement inthe business world that operations aresupposed to slow down a little in thesummer, and since your competitionhas slowed down, it’s fine if you puton the brakes for a while, too. Right?Wrong, says business strategy

expert Tom Hall. In fact, summer isthe best possible time to really getfocused on what makes your companytick—in large part precisely becauseyour competition is taking it easy dur-ing these lazy, hazy, crazy days.“It makes perfect sense,” says Hall,

co-author of Ruthless Focus: How toUse Key Core Strategies to GrowYour Business. “If everyone else isslowing down and losing their focusduring the summer months and you dothe opposite, then you will be wayahead of the competition when fallrolls around. Plus, losing your collec-tive grip on what you’re supposed to

be doing—and why—for three monthsis just bad for business.”The ability to focus—ruthlessly—is

what separates the companies thatgrow steadily and successfully fromthe ones that get distracted, trot downthe wrong side path, and find them-selves lost in the forest, says Hall.“Focus requires complete concen-

tration, which can be difficult toachieve when the joys of summer aredistracting you and your employees atevery turn,” he says. “It’s difficult butnot impossible. Take the right stepsand you can end the summer in amuch better position than when itbegan.”Step 1. Vow to make this the

Summer of Strategy. This summer, strive to make your

core strategy (the main strategy thatdrives your business) the focus ofeverything: meetings, new projects,old projects, communications withclients and prospects—everything.You should be able to describe yourcore strategy in a couple of crisp sen-tences. And it should answer two keyquestions: (1) How are we going tobeat the competition? and (2) How arewe going to make money?“Every action, every day, moves

you and the business forward, espe-cially in the summer,” Hall says. “Aclear strategy will help you stayfocused and help you stay on track. Ifyou get off track, use that same clearstrategy to help you identify what hap-pened and what needs to change. Keepthe two key questions in the forefrontof everything you do.”One great way to maintain focus

during the summer and beyond is tocreate a stick-to-the-strategy group.Hall explains: “The group shouldinclude people from every department.Their main objective should be tomake sure the organization as a wholeisn’t losing sight of the core strategy.They’ll bring you and the rest of youremployees suggestions on how to pushforward and get back on track when-ever necessary.”Step 2. Plan the work and work

the plan.Sometimes the best way to stay

focused during the summer is to puteverything you have to do right therein front of you. Create a to-do worklist and encourage your employees todo so as well. Carefully manage themaster list so that you are regularlyupdating it with new tasks and cross-ing off those that you have alreadycompleted. Make sure your employeesdo the same with their individual lists.The constant focus on these work listswill keep people from slacking off justbecause it’s summertime.“You’ll be surprised how gratifying

it can feel to check a task off of yourto-do list,” says Hall. “When you do,it provides you with the encourage-ment you need to move on to the nexttask. Making a to-do list might seemlike a simple idea, but, trust me, it willhave a big payoff. The list will helpyou see the big picture, and havingeverything in front of you will be agreat way to continuously remindyourself that there is a lot to accom-plish this summer.”Step 3. Don’t let people use their

vacation as a get-out-of-work-freecard. Speaking of to-do lists, anyone get-

ting ready to go on vacation should be

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paying close attention to his or hers. Apending vacation should not be anexcuse for not getting work done.Rather, it should be a red flag thaturges you to be mindful of deadlines,rearrange more flexible projects, andask for help if you need it. This is themessage leaders should be sending toemployees: If you are going to be onvacation, know what your deliverablesare—and then deliver!“Have a meeting with employees a

couple of weeks in advance of theirvacations in order to go over theirlists,” suggests Hall. “Point out thosetasks that absolutely must get donebefore they go. Obviously, it’s impor-tant for everyone to get a break duringthe summer, but no one—not youremployees, not you—should takethree months off just because it’s sum-mer. Not only will getting your workdone make for a more enjoyable vaca-tion for you, but it will make things alot easier on coworkers and employeeswhile you are out. And it will makeyour return a lot easier, as well.”Step 4. Update clients once a

week. During the summer, you and your

employees aren’t the only ones whoare traveling or just MIA. Clients like-ly will be, too. Knowing they aren’t asavailable as usual, you might allowyourself to slip into less frequent com-munication with them. Don’t.“Make yourself provide your

clients with an update on what’s goingon with their accounts at least once aweek,” says Hall. “Doing so is a greatway to stay ruthlessly focused on pro-viding them the best service and mak-ing sure you are on track to meet yourclients’ goals. Providing updates willpush you to pay close attention to eachof your clients. It forces you to keepthe ball moving, constantly thinkingabout what step should come next,what goal should be reached next, andwhat you can do to improve youroverall service.”Step 5. Leverage the freedom of

summer to generate fresh ideas. Summertime is just more fun than

any other time of the year. It bringsout people’s “inner child” and sparkscreative ideas. That’s why summer is agreat time to focus on developingfresh ideas at your organization. Oneway to get people’s creative juicesflowing is to hold an organization-wide contest.“Ask everyone to submit their

bright idea for the company and a planfor implementation,” he advises. “To

motivate them to give you their besteffort, offer the winner an extra day ofvacation or a Friday off. Another wayto inspire is to hold a brainstorminglunch with your staff once a month orso. Ask them to each bring at least oneidea, whether it be a way to help aclient, a way to save money, or a wayto improve the business as a whole.“Finally, get outdoors from time to

time,” he adds. “Take everyone to thelocal park one day. Encourage them touse the time outside the office tobrainstorm ways to improve the busi-ness or tackle a problem that has beengiving them trouble. Not only willpeople get to spend some fun timetogether enjoying the weather, they’llhave a chance to clear their heads anddo some great brainstorming.”Step 6. Look for ways to keep

people refreshed. Staying focused shouldn’t be about

drudgery. People need a bit of fun and

levity to prevent boredom andburnout. That’s why Hall suggests youlook for ways to infuse the spirit ofsummer into your organization. Letyour employees enjoy the things thatmake summer great without ever leav-ing the office. Provide fresh flowersfor everyone’s desks. Serve up a pitch-er of ice-cold lemonade. Relax thedress code (at least one day a week).Pipe beach music throughout theoffice. The possibilities are endless.“Do whatever you can to make

work more summer-y,” says Hall. “Itwill create a nice escape from the sta-tus quo that will refresh you and youremployees and help everyone refocuson the work at hand while still gettingto enjoy the spirit of summer." “It may sound like a great idea to

check out for the summer and just pickthings back up in September,” he says.“But in doing so, you leave a lot ofgreat opportunities on the table.”


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For confi dence underfoot – and overhead –builders trust Ainsworth Engineered. For fl ooring systems that lay fl at and true. For stairs that won’t cup, sag or squeak. For cost-competitive, sustainably sourced products, reliably supplied, choose quality. Choose Ainsworth.

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For confi dence underfoot – and overhead –builders trust Ainsworth Engineered. For fl ooring systems that lay fl at and true. For stairs that won’t cup, sag or squeak. For cost-competitive, sustainably sourced products, reliably supplied, choose quality. Choose Ainsworth.

1 W" 0.8E Durastrand® OSL Code-approved for short-span headers.

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PointSIX™ Durastrand FlooringAn engineered subfl oor solution, with patented tapered-edge technology, designed to offset the effects of moisture exposure.

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Photos by BPDSOUTHERN MANUFACTURERS

SOUTHEASTERN LUMBER Manufacturers Association held its annualconference July 14-16 in Naples, Fl. [1] Sandy & Jeff Miller. [2] Rich &Judith Williams. [3] Beverly Hankins, J.D. Hankins. [4] Alex Seabolt,Sandie Sparks, Ardis & Pat Almond. [5] Bill Scott, Melissa Scott, BarryBlack. [6] Ethel & Tom Rice. [7] Hank & Kimberli Scott, Andy Pollard. [8]Wade, Margaret & Leslie Camp, Alicia & Fred Stimpson. [9] Stuart,Steven, & Vicki O’Neill. [10] Daniel & Rachel Dickert. [11] Sue Jordan,

Melissa Harris, Bob Jordan, Christy Jordan. [12] Keri & Ryan Hilsinger.[13] Robert Harris, Theresa & Bailey Bailey. [14] John & Deborah Ball.[15] Katie, Hunter, & Gina McShan. [16] Connie & Jeff Wilson. [17]Buddy & Ann Klumb. [18] Bob Tweedy, Debbie Burns, David Richbourg.[19] Jason Houck, Mike Pastore. [20] Digges Morgan, William Almond.[21] Jack Jordan, Joe Patton.

(More photos on next page)


SLMA attendees (continued from previous page): [22] Jack Curtis, Shiela McAlhany, Mark Palmer.[23] Nash Elliott, Mark Tucker. [24] Larry Blackmon, Don Bright, John Smith, Stephanie Thomas.

IN MemoriamCharles Cornelius “Chuck”

Veenstra, 85, founder of Big BuckBuilding Centers and Custom Com-ponent Co., Racine, Wi., died July 10 inRacine.

He was a captain in the U.S. Marines,serving in World War II and Korea. Hetook over the family’s Veenstra Lumberin the early 1960s, helping it grow tothree locations. He opened his first BigBuck in Waukesha, Wi., eventuallyrenaming the other yards Big Buck. Healso launched ProMillwork, a millworkfabrication division. When he retired in1985, his two children took over.ProBuild bought the business in 1998and closed it last summer.Donald A. Butterfield, 83, co-

founder of A&B Lumber, Pembroke,N.H., died July 3 in Loudon, N.H.

He served in the military duringWWII and the Korean War. He helpedlaunch A&B in 1977 and for the past 16years had worked with Loudon BuildingSupply, Loudon.Joseph Meyer Hymerling, 89, for-

mer owner and operator of Fort MeadeLumber Co., Fort Meade, Fl., died June9 in Fort Meade.

He served with the U.S. Army AirCorps and Air Force in WWII. He man-aged Nicholson Supply Co., Fort Meade,before starting his own business in 1975.Donald E. Doppler, 87, president

and c.e.o. of Johnson-Doppler LumberCo., Cincinnati, Oh., died June 5 inCincinnati.

He joined the family business in1949 and assumed the top post in 1957.

He was actively leading the company atthe time of his death. Andrew “Andy” Orlet, 79, retired

president and c.e.o. of O’Neil LumberCo., E. St. Louis, Il., died July 6 inBelleville, Il.

He joined O’Neill Lumber in 1960.Five years later, he and two partnersbought the firm. He retired in 1992.

He was a past president of the IllinoisLumber Dealers Association.Alton C. “Jake” Mercer, 102,

retired co-owner of Sellersburg Lumber& Supply, Sellersburg, In., died July 7 inMadison, In.

He worked at Graham Lumber Co.,Scottsburg, In., and Russ & RussLumber, Jeffersonville, In., beforebecoming co-owner and manager ofSellersburg in 1950. He sold the yardand retired in 1974.George F. Dean, 89, retired owner of

Northshore Ace Hardware, N.Muskegon, Mi., died from heart compli-cations on June 30.

He served with the U.S. Army duringWWII, then became a pro hockey play-er. He opened the store in 1955 andpassed it to his sons in 1986, but stillcame into the store every day during hisretirement.Kevin E. Perry, 65, longtime

Indiana hardware store manager, diedJune 28 in Muncie, In.

Before retiring in 2002, he workedfor Yorktown Hardware, Hi-Way 3Hardware, True Value, Lowe’s, and Ace. John Thomas Munro, 78, retired

owner of Munro Builders Supply/TrueValue Hardware, Rolla, N.D., died June

21 in Lake Upsilon, S.D.After graduating from the University

of Minnesota, he served with the U.S.Army in Korea. He also operated MunroContractors, Rolla.Pete Windiate Jr., 54, co-owner of

Perkins Builders Supply, Perkins, Ok.,died June 2 in Stillwater, Ok.

He and partner Larry Wilson openedthe business in 1988.Greg Ziegler, 89, former head of

Ziegler’s Ace Hardware, Elgin, Il., diedJune 22 in Barrington, Il.

During WWII, he served with theMarines in the Pacific. After the war, hegraduated from Kalamazoo College thenjoined the family business. The 10-loca-tion chain is now run by the third gener-ation of Zieglers.

He also served as director and vicechairman of Ace Hardware Corp.’sboard of directors, and received theIllinois Retail Merchants AssociationRetailer of the Year award in 1983. Paul E. Drone, 62, co-owner of

Carmi Lumber, Carmi, Il., died June 20after the experimental aircraft he wasflying crashed at the local airport.

He joined his brother, Don, at thebusiness in 1973, and they later pur-chased it.Harper C. Chambers, 78, owner of

Harper Chambers Lumber, Tuscaloosa,Al., died June 18 in Tuscaloosa.

After serving in the U.S. Army, heestablished the business in 1967. He alsoserved on the board of HardwareWholesalers Inc. and was namedAssociate Member of the Year by theTuscaloosa Home Builders Association.Robert Junior Rose, 76, retired

employee of Rose Lumber Co., Taze-well, Va., died June 21 in N. Tazewell.

He was a veteran of the U.S. Army. Frank Caillouet Gauthier, 76,

retired owner of Frank’s CouvillionLumber, Cottonport, La., died May 29 inCottonport.

He retired from the lumber businessafter 28 years, following six years in theU.S. Army. Armond Kirk Carlin, 85, former

owner of Carlin Lumber Co., Monett,Mo., died May 29 in Monett.

He served with the U.S. Navy in thePacific during World War II.

From 1961 to 1969, he managedMeek Lumber locations in Lockwoodand Springfield, Mo. He owned andoperated Carlin Lumber from 1969 to1983. In 1986, he helped open Meek’snew store in Monett, Mo., staying onuntil his retirement in 1998.


WE BUY AND SELL PANEL STRIPSPlywood, OSB, particleboard and MDF by thetruckloads. Lumber Source, Phone (800) 874-1953, Fax 888-576-8723, [email protected].

WANTED TO BUY

Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy orheadline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (adver-tiser sets the type), $65 if we set the type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com.For more info, call (949) 852-1990. Make 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/o BPD. Namesof advertisers using a box number cannot be released.

CLASSIFIED Marketplace

HELP WANTEDLUMBER TRADER

We are a wholesale lumber company lookingfor an experienced trader. Any species. Norestrictions on mills or customers. No reloca-tion. 60% split for trader. Call John at LakesideLumber at (623) 566-7100 or [email protected].

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ZERO WASTE recycling bin for Portsmouth, N.H., was constructed by Middleton Building Supply,which donated time, building materials, and equipment for the project.

New Hampshire DealerPromotes RecyclingMiddleton Building Supply’s stores

in Hampton and Dover, N.H., havepartnered with a local environmentalgroup to create colorful recycling binsfor the nearby city of Portsmouth.“We are really working to offer

more green options in our stores,” saidAndy Carberry, who manages thestore in Hampton. “Collaborating on avery visible project such as this onewas a perfect fit.”Middleton donated a variety of

building materials for the project, aswell as the manpower, trucks, cranes,and forklifts needed to construct andcarry the 500 to 600 lb. bins. Thecompany also solicited donations fromvendors such as MoistureShield,which supplied exterior trim. The bins’ sides feature colorful tiles

decorated by local schoolchildren.Tiles on the top identify Middleton,MoistureShield, and other donors. Thegroup installed the first bin in mid-July, and hopes to build and install 16more bins over the summer.

Remodeling to Pick Up in ʼ11Remodeling spending is expected

to increase on an annual basis by theend of the year. Harvard’s latestLeading Indicator of RemodelingActivity points to growth acceleratingto double-digits in first quarter 2011.“Absent a reversal of recent eco-

nomic progress, there should be ahealthy upturn in home improvementactivity by year-end and into nextyear,” says Harvard’s Eric S. Belsky.IWPA Revises Veneer StandardInternational Wood Products Asso-

ciation has approved a new voluntaryIWPA Grade “Product Standard forImported Rotary Cut Wood Veneer &Platforms.” The previous standard wasreleased 10 years ago.“It was time to do an overhaul,”

said IWPA veneer committee chairBronson Newburger, Clarke Veneers& Plywood. “Taking into account thatveneer faces continue to be thinnerand thinner, we realized that adjust-ments to the standard had to be made.”The new specs establish minimum

requirements for each grade, andreflect the current trend in the wayveneers are being produced and usedin veneer and plywood markets. “It’s abetter explanation of what mills needto know in order to satisfy customers’demand, and what users can expectfrom suppliers,” added Newburger.


DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

Moulding & Millwork Producers Assn. – Aug. 10-15, summermeeting, Asheville, N.C.; (530) 661-95914; www.wmmpa.com.

New York & Suburban Lumber Association – Aug. 11, baseball,Citi Field, Queens, N.Y.; (518) 286-1010; www.nrla.org.

Northern New York Lumber Dealers Association – Aug. 11, fish-ing derby, Clayton, N.Y.; (518) 286-1010; www.nrla.org.

Southern Forest Products Association – Aug. 11-12, machineryexpo, Georgia World Congress Center, Atlanta, Ga.; (504) 443-4464; www.sfpa.org.

Handy Hardware Wholesale – Aug. 12-14, dealer market, Henry B.Gonzales Convention Center, San Antonio, Tx.; (713) 644-1495.

Orgill Inc. – Aug. 12-14, fall market, McCormick Place, Chicago, Il.;(901) 754-8850; www.orgill.com.

Peak Auctioneering – Aug. 14, LBM auction, Kansas City, Mo.;(800) 245-9690; www.peakauction.com.

Central New York Lumber Assn. – Aug. 19, clambake, Hiner-wadles Groves, Syracuse, N.Y.; (518) 286-1010; www.nrla.org.

Northeastern Young Lumber Execs – Aug. 19, baseball, FenwayPark, Boston, Ma.; (518) 286-1010; www.nrla.org.

International Woodworking Fair – Aug. 25-28, Georgia World Con-gress Center, Atlanta, Ga.; (770) 246-0608; www.iwfatlanta.com.

Kentucky Forest Industries Assn. – Aug. 26, golf & fishing outing,Barren River State Park, Ky.; (502) 695-3979; www.kfia.org.

Peak Auctioneering – Aug. 28-29, LBM auction, Baltimore, Md.;(800) 245-9690; www.peakauction.com.

Northeastern Retail Lumber Association – Aug. 31-Sept. 2,roundtable, Unionville, Ct.; (518) 286-1010; www.nrla.org.

Twin Cities Hoo-Hoo Club – Sept. 7, annual election meeting &luncheon, Nye’s, Minneapolis, Mn.; (612) 490-8583.

Virginia Tech – Sept. 10, energy reduction workshop, SouthBoston, Va.; www.woodscience.vt.edu.

Hoo-Hoo International – Sept. 10-12, annual convention, HolidayInn Center, Sioux Falls, S.D.; (800) 979-9950.

HDW Inc. – Sept. 11-12, fall dealer market, Shreveport ConventionCenter, Shreveport, La.; (318) 686-8527.

True Value Co. – Sept. 13-15, fall market, Las Vegas ConventionCenter, Las Vegas, Nv.; (773) 695-5000.

DeckExpo – Sept. 15-17, Baltimore Convention Center, Baltimore,Md.; (866) 475-6495.

Remodeling Show – Sept. 15-17, Baltimore Convention Center,Baltimore, Md.; (866) 475-6495.

Northeastern Lumber Manufacturers Association – Sept. 17, golfouting, Wentworth Golf Club, Jackson Village, N.H.; (207) 829-6901; www.nelma.org.

Twin Cities Hoo-Hoo Club – Sept. 17, annual LBM auction for edu-cation, Scott County Fairgrounds, Jordan, Mn.; (612) 490-8583.

Peak Auctioneering – Sept. 18, LBM auction, Detroit, Mi.; (800)245-9690; www.peakauction.com.

Door & Hardware Institute – Sept. 22-23, annual conference &expo, Navy Pier, Chicago, Il.; (703) 222-2010.

Florida Building Material Association – Sept. 22-24, meeting &expo, Walt Disney World Dolphin Resort Resort & ConventionCenter, Lake Buena Vista, Fl.; (352) 383-0366.

Northeastern Young Lumber Execs – Sept. 22-24, timber tour,Adirondack Park, N.Y.; (518) 286-1010; www.nrla.org.

Kentucky Building Materials Association – Sept. 23, golf tourna-ment, Oldham County Country Club, La Grange, Ky.; (800) 844-1774; www.kbma.net.


Advantage Trim & Lumber [www.advantagelumber.com]..........13

AERT [www.aertinc.com].................................................................5

Ainsworth [www.ainsworth.ca].....................................38-39, 44-45

Anthony Forest Products [www.anthonyforest.com] .................23

Arch Wood Protection [www.wolmanizedwood.com].........Cover I

Cedar Creek Wholesale Inc. [www.cedarcreek.com] ............30, 42

Crumpler Plastic Pipe [www.cpp-pipe.com] ................................18

Dixie Plywood & Lumber Co. [www.dixieply.com] ......................21

Fiberon LLC [www.fiberondecking.com] ............................Cover II

Fletcher Wood Solutions [www.tenonusa.com] ..........................43

Forest2Market [www.forest2market.com] ....................................33

Krauter Solutions [www.krauter-storage.com]............................31

Landry Lumber Co..........................................................................17

Lee Roy Jordan Lumber Co. [www.jordanredwood.com]...........41

Mary’s River Lumber [www.marysriverlumber.com] ..................28

Mill2Market [www.forest2market.com] .........................................33

New South [www.gator-guard.com] ...................................Cover III

North American Wholesale Lumber Assn. [www.lumber.org] ...22

Northeastern Lumber Manufacturers Assn. [www.nelma.org]...40

Peak Auctioneering [www.peakauction.com]..............................35

Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....37

Richardson Timbers [www.timbersonline.com] ..........................34

RISI [www.risiinfo.com/crows] ......................................................32

RoyOMartin [www.royomartin.com] .............................................27

Simpson Strong-Tie [www.strongtie.com].....................................3

Siskiyou Forest Products [www.siskiyouforestproducts.com] ..29

Smith Millwork [www.smithmillwork.com]...................................49

Sunbelt [www.sunbeltracks.com] .................................................15

TLC Mouldings [www.tlcmouldings.com]..........................Cover IV

U.S. Lumber Group [www.uslumber.com] ...................................25

Viance [www.treatedwood.com] .....................................................7

Western Red Cedar Lumber Association [www.wrcla.org] ..........9

ADVERTISERS IndexFor more information on advertisers, call themdirectly or visit their websites [in brackets].

IDEA FileThe Anti-Big Box

Thinking local has allowed a 50-year-oldyard in Vero Beach, Fl., to succeed despite competitionfrom big boxes. “We are a niche business that specializes in stuff

that’s different,” said Jack Sturgis Jr., who co-ownsSturgis Lumber & Plywood with his brother Charlie.“The big boxes carry 80% of the things people need.We carry the other 20%.” That means everything a homeowner or business

needs, including glass cutting and hard-to-find hardwareand lumber, is available—or the Sturgis brothers willfind it for you. Founded in 1954 by Jack Sturgis Sr., the business

sits on six acres and includes a True Value Hardwarestore, a lumberyard, and lumber-storage buildings. Thefamily also owns and manages timber hardwood land inAlabama, where the brothers’ great-grandfather workedin the lumber business in the 1830s.

“We’re an old-style lumberyard,” said Jack. “We’reheavily into materials for docks and dune crossovers.” Pressure-treated timbers that can survive a Category

5 hurricane are a specialty, as are stainless steel fasten-ers, nails, screws, and drill parts that can stand up tocorrosive sea air. In addition to standard plywood grades, the yard also

carries hardwood plywood in teak, cherry, maple, andAfrican mahogany. Other local favoritesare 18”x18” beams and decorativepecky cypress boards.

“If somebody can’t findsomething, we’llhunt it down,” saidJack Sturgis. “I like

being able to find things.”

Service Rates Industry WebsitesThe Construction Marketing Association has rolled out

the Construction Brand Internet Index, a comprehensiverating of the Internet presence of top construction brandsbased on over 50 variables.The rating identifies how effective a specific website

domain is relative to other websites. The ratings are basedon key search engine data, website meta structure, traffic,social media integration (use of blogs, Facebook, Twitter,YouTube, etc.), inbound links, indexed pages, and more.“Overall, the top construction brands rate high due to

high volume website traffic and large quantities of links;however, a number of missed opportunities were identifiedwith highly rated websites,” said CMA chairman NeilBrown. “Certainly, the low-scoring websites lacked socialmedia integration, and in one case, even basic meta data.As we evaluate the top construction brands, it is apparentthat we (construction) lag other sectors in Internet bestpractices. Fortunately, the association addresses theseopportunities with programs and training.”Top rated industry sites were www.ridgid.com and

www.andersenwindows.com. CMA’s rating service is free to qualified construction

brand websites.

FOR MORE INFORMATION,

CALL 1-800-346-8675 OR VISIT

WWW.GATOR-GUARD.COM

New South Lumber Companies, Inc. 3700 Clay Pond Road, Myrtle Beach, SC 29579-7330

GatorGuard™ treated lumber

always delivers. Canfor operates

two treating plants in Camden

and Conway, South Carolina.

Both are equipped with new

state-of-the-art control systems

to ensure consistent quality.

resources and lumber treatment,

plus delivery by Canfor trucks,

we guard the entire process.

TOUGH... RESILIENT... EXPERIENCED!

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