the merchant magazine - june 2012

SIDING FORECAST – FROM FIBER CEMENT TO WOOD � D-I-Y ONLINE MARKETINGJJUUNNEE 22001122

TheMERCHANTMagazineTHE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

44 � The Merchant Magazine � June 2012 Building-Products.com

June 2012Volume 90 �� Number 12

OnlineBREAKING INDUSTRY NEWS, INDUSTRY PHOTO DOWNLOADS, & THE MERCHANT: DIGITAL VERSION

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CHANGE OF ADDRESS Send address label from recentissue if possible, new address and 9-digit zip to addressbelow. POSTMASTER Send address changes to The MerchantMagazine, 4500 Campus Dr., Ste. 480, Newport Beach,Ca. 92660-1872.The Merchant Magazine (ISSN 7399723) (USPS 796-560) is published monthly at 4500 Campus Dr., Ste. 480,Newport Beach, Ca. 92660-1872 by Cutler Publishing,Inc. Periodicals Postage paid at Newport Beach, Ca., andadditional post offices. It is an independently-owned publi-cation for the retail, wholesale and distribution levels of thelumber and building products markets in 13 western states.Copyright®2012 by Cutler Publishing, Inc. Cover andentire contents are fully protected and must not be repro-duced in any manner without written permission. All RightsReserved. It reserves the right to accept or reject any edi-torial or advertising matter, and assumes no liability formaterials furnished to it.

Special Features9 INDUSTRY TRENDS

SIDING FORECAST: FIBER CEMENT LEADS

CATEGORY REBOUND

10 PRODUCT SPOTLIGHTUPPER-GRADE REDWOOD SIDING

POISED FOR COMEBACK

12 MANAGEMENT TIPSRUNNING ONLINE CONTESTS

14 FEATURE STORYCO-OPS AID IN SOCIAL MEDIA

28 SPECIAL FOCUSNEW SOUTHERN PINE DESIGN VALUES

GO INTO EFFECT

36 PHOTO RECAP: NAWLA CONFERENCE

46 PHOTO RECAP: HOO-HOO GOLF

In Every Issue6 TOTALLY RANDOM

16 COMPETITIVE INTELLIGENCE

18 OLSEN ON SALES

20 FAMILY BUSINESS

26 MOVERS & SHAKERS

32 NEW PRODUCTS

42 ASSOCIATION UPDATE

43 IN MEMORIAM

44 CLASSIFIED MARKETPLACE

45 DATE BOOK

46 IDEA FILE

46 ADVERTISERS INDEX

THUNDERBOLT WOOD TREATING“We Treat Wood Right”……QQuuaalliittyy WWoooodd TTrreeaattiinngg SSeerrvviicceess SSiinnccee 11997777

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Bob Palacioz, sales/marketing mgr. • [email protected](916) 402-3248 • Fax (916) 339-2477

MMaarriinnee && IInndduussttrriiaall SSaalleessMiguel Gutierrez • [email protected]

(209) 747-7773 • Fax (209) 451-0425

Treating Services Only (TSO)

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www.building-products.comA publication of Cutler Publishing

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Publisher Alan [email protected]

Publisher Emeritus David CutlerDirector of Editorial & Production

David [email protected]

Editor Karen [email protected]

Contributing EditorsDwight Curran, Carla Waldemar,James Olsen, Jay Tompt,

Mike Dandridge

Advertising Sales ManagerChuck Casey

[email protected]

Administration Director/SecretaryMarie Oakes [email protected]

Circulation Manager Heather [email protected]

How to AdvertiseChuck Casey

Phone (949) 852-1990 Fax [email protected]

Alan Oakeswww.building-products.com


CLASSIFIEDDavid Koenig


How to SubscribeSUBSCRIPTIONS Heather Kelly


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Lifelong learning, a competitive advantage

I HAVE JUST RETURNED from the first-ever NAWLA Leadership Conference inColorado Springs. The event emphasized what I had realized over the last few

months—that I need to get back to my roots, which I will explain later. The conference was the first event in my 11 years in the industry that was from

start to finish full days of management and executive learning programs with topindustry and out-of-industry speakers. No time off, just pure session after sessionand almost 100% attendance at each session. I learned a lot, as no doubt did the otherattendees—a mix of owners, senior managers, and up-and-coming future executives.

First, my congratulations to NAWLA for developing this new program and con-gratulations to the members for making the investment to attend—and bring alongothers—in these difficult times. I am sure that, due to initial feedback, next year’sprogram is already being planned, and I urge all current and future NAWLA mem-bers to put this event on your calendar for next year. I also recommend taking alongother managers and or key employees. The cost vs. return is always a key factor, andI believe that the benefits will far outweigh the expense.

I have spent decades in the educational publishing and conference/seminar train-ing industries (from sales to executive management training to technology, domesticand international, for companies small to Fortune 100). I have spent a good portionof my business life in education and understand the value of lifelong learning. Andthe more I learn, the more I realize how much I have left to learn. Today, after welearn something, circumstances change again and different knowledge is needed. Atthe NAWLA conference, we discussed “Cash is King.” I would also argue“Knowledge is Power.” We all need constant education, training and reinforcement.Yet I realize not all companies can afford to offer or are equipped to handle suchtraining.

So, what to do? What was clear to me in the beginning of my current businesslife was that this industry by nature has been a hands-on training industry, asopposed to sending management and employees for job skills training. What alsohas become clear to me is that we live in an era where there is a need for more learn-ing opportunities. We have lived through one of the most difficult times in businesshistory. I can imagine many had issues to deal with that they were ill-equipped tohandle, in addition to the many day-to-day issues we all face.

Many of our readers—managers, executives, salespeople, and managers-in-train-ing—could benefit from a constant source of education. This should be general edu-cation and not just industry training.

Our magazine has over the years featured countless educational articles writtenby experts, but I have realized over the last six months that we need to do more. So,in the next couple of months, we will launch a new branded educational series aimedat not only executives and owners, but also the future managers in this industry.

It is also clear to me that not all employees see our publications when they arriveat your offices as many subscribers hoard them (normally great news). I ask that ourmagazines be passed around to those who would benefit.(Or, simply order more subscriptions!) Free digital issuesare available on our website, building-products.com. Inthe near future, each magazine will have a QR code for adirect link to our publications as well. Our publicationshave always been a source of industry and product newsfor a combined 120 years, but now I want us to be yourresource for executive education as well.

So, look out in the coming issues for our new“Mastering” series—two more good reasonsto read and enjoy our publications. As we hitour 90th year in business next month, wewant to be your resource for the next 90years as well.

TOTALLY RandomBy Alan Oakes

Alan Oakes, [email protected]

LPCorp.com/now |

LP® SmartSide® Trim & Siding products offer the beauty of cedar with the advantages of engineered wood. That meansconsistent boards with no knots or voids. An industry-leading warranty that provides a 5-year, 100% labor and replacementfeature and a 50-Year Prorated Limited Warranty on the substrate. And our proprietary SmartGuard® process that ensuresLP SmartSide products resist fungal decay and termite damage. LP SmartSide Trim & Siding. All the advantages you need.

© 2008 Louisiana-Pacific Corporation. All rights reserved. SmartGuard is a registered trademark of Louisiana-Pacific Corporation and S-T-N Holdings, Inc.All other trademarks are owned by Louisiana-Pacific Corporation.

LP® SmartSide® Trim & Siding

The Smartest Advantages In Siding

Merchant 8.08 Layout:M Sig1-nov 03 1-8,41-48 7/29/08 9:06 AM Page 9

Building-Products.com June 2012 � The Merchant Magazine � 99

U.S. DEMAND FOR siding is forecastto grow 8.4% annually through

2016 to 96.5 million squares, valuedat $10.2 billion, according to a newstudy by Freedonia Group.

Growth will be spurred by anincrease in housing completions fromtheir depressed 2011 base. Althoughhousing completions will remainbelow the levels reached at theircyclical peak in 2006, the recoverywill spark above-average gains in theresidential siding market through2016.

The expected rebound in housingcompletions through 2016 will re-establish the new housing market asthe largest end use for siding.Demand for siding in residentialimprovement and repair applicationswill rise at a moderate pace through2016. Those homeowners that put offimprovement projects—such as thereplacement of worn out or out-offashion siding—will undertakethem in the future, boosting demand.

Nonresidential demand for sidingis also forecast to grow rapidlythrough 2016, albeit not at the level ofthe residential market. Gains will bedriven by advancing nonresidentialbuilding construction expenditures.

The office and commercial andlodging segments, which experiencedthe most rapid demand declinesbetween 2006 and 2011, will exhibitthe strongest growth going forward asmore office buildings and retail sitesare erected. Many of these structureswill be built with such materials asfiber cement and stucco that serve aslow-cost alternatives to brick, wood,and stone.

Among material types, stucco,brick and fiber cement siding are fore-cast to see the most rapid demand

gains through 2016, increasing at dou-ble-digit paces. The rebounding resi-dential markets in the South and Westregions of the U.S.—where thesematerials are most often installed—are projected to experience thestrongest growth in population andhousing activity through 2016.

Brick and fiber cement see wideuse in the South, while stucco is mostcommonly used in the West region.Thus, as more homes are built andremodeled to meet the needs of theregions’ increasing population,demand for those siding materials willalso advance.

Fiber cement siding will continueto take market share from other mate-rials, such as vinyl and wood.Demand for fiber cement siding willbe spurred by its ability to be pro-

Fiber cement to leadsiding comeback

INDUSTRY TrendsU.S. Siding Forecast

duced into siding that resembles morecostly materials, such as brick orstone. Fiber cement siding demandwill also be supported by continuingconsumer acceptance of the materialbecause of its performance properties,such as resistance to degradationcaused by insect attack and moisture.

Vinyl siding accounted for thelargest share of siding demand in2011 and will continue to lead themarket in 2016, as such innovationsas insulated vinyl siding and productsthat better resemble natural materi-als—such as wood and stone—willpromote demand. However, competi-tion from fiber cement and stucco sid-ing will check growth. Fiber cementand stucco siding are said to offerend-users better long-term durabilityand require less maintenance.

FIBER CEMENT siding will continue to take market share away from competing materials, althoughvinyl will remain the top-seller.


PRODUCT SpotlightUpper-Grade Redwood Siding

THERE WAS A TIME when redwoodwas among the more preferred

and popular siding materials for finehomebuilding. There never has beenany question as to redwood’s beautyor durability. Its authentic natural lookblends in particularly well in mountainor lakeside communities.

The increased acceptance of vinyland the introduction of compositematerials such as fiber cement havechipped away at the market share for

Redwood siding risingNew investments, second-growth availabilitydrive resurgence of upper-grade redwood

CHECK OFF: Moses Perez, production supervisor, inspects a board of clear redwood siding atRedwood Empire’s manufacturing facility in Redding, Ca.

Now, after more than a decade ofdeclining demand, Redwood Empire ispoised to help redwood reclaim lostmarket share. The company acquiredits second remanufacturing facility lastAugust, in Redding, Ca., and has beeninvesting to bolster operations theresince. The facility, which once pro-duced mostly specialty products forHawaiian markets, primarily manufac-tures siding and trim from upper-graderedwood.

The proximity of RedwoodEmpire’s primary sawmill inCloverdale and manufacturing facili-ties in Asti, Ca., to southern-range red-wood forests provides easy access toquality logs. Each mill is custom-designed to cut for grade rather than tomaximize throughput. Though themilling process often takes longer, theresult is greater output of upper-graderedwood and more availability of ver-tical grain lumber, which feedsRedding’s siding-production operation.A Sustainable Product

The redwood siding popularthroughout the 20th century largelywas the product of old-growth treesharvested from California’s SanMateo, Santa Cruz, and Mendocinocounties. Now these areas, the first tobe logged, are the source of second-generation forests managed for

all natural wood species. Vinyl nowcommands 40% of the $6 billion sid-ing market, while wood productshover around 10%. Pricing spikes forredwood’s highest grades before theturn of the 21st century likely helpedaccelerate its market-share drop, asdid prior changes in harvesting prac-tices that resulted in less upper-graderedwood coming to market. The per-ception grew rapidly that upper-graderedwood simply was not available.


decades under California’s sustainability laws—the tough-est in the nation. Many second-growth trees in the southernend of redwood’s natural range exhibit qualities similar tothe wood harvested in the heyday of redwood siding.

Redwood harvested from sustainably managed forest-lands along California’s coast has proven to be the sourceof eco-friendly, long-life products. A renewable resource,redwood trees remove greenhouse gases from the airthrough photosynthesis, absorbing carbon dioxide andreleasing oxygen. Life Cycle Assessment research, whichstudies cradle-to-grave environmental impacts of buildingmaterials, has shown that redwood products store more car-bon than is used in their manufacturing. The net result ofusing sustainably harvested redwood is a decrease in green-house gas emissions.

Geography Correlates to PreferencesEven in the lean years for redwood siding, there were

pockets of demand across the country with interesting andfairly constant geographic preferences. The East Coast, forinstance, has shown the greatest demand for beveled siding,particularly 1/2”x6” pattern 322R, followed by 1/2”x8”beveled pattern 323R and some 1x6” tongue and groovepatterns. Texas markets have generally preferred thick-butted rabbeted siding like pattern 477. The Midwest typi-cally has leaned more heavily toward 1”x6” tongue andgroove options, while the West Coast has favored shiplappatterns (particularly pattern 793) and some bevels.

Economic, Consumer & Architectural DriversRemodeling efforts that allowed homeowners to seam-

lessly replace damaged siding on existing structures or

match home additions to established looks drove much ofRedwood Empire’s initial manufacturing at its Reddingfacility. Indeed, remodeling of aging homes is still forecastto play a significant role in the overall siding market.

Recently, however, new home construction has account-ed for a larger share of production. Several factors may bebehind the increase in demand for redwood siding for newhomes, including price. Once consistently the most expen-sive option among natural wood siding products, shiftingmarket dynamics have made redwood price-competitivewith cedar siding.

Green building trends may also be having an influence.Research indicates consumers are placing greater emphasison environmental performance and sustainability issues intheir purchase decisions. Redwood siding is recyclable andbiodegradable, and offers a favorable carbon footprint.

Perhaps the greatest influence has come from the archi-tectural community. Architects have long been attracted toredwood—especially vertical grain redwood—for interiorand exterior applications because of the wood’s naturalbeauty. Increased awareness that vertical grain redwood isagain available appears to have spurred a rise in architect-specified redwood siding. While vertical grain availabilityremains somewhat limited in the top Clear All Heart grade,Redwood Empire has produced significant quantities ofvertical grain siding in all upper grades, including Heart B,Clear, B grade, and selected commons.

As consumer interest and demand for redwood—helpedby architects and designers—moves inside the home, interi-or trim will likely experience an uptick as well.

For Redwood Empire, the availability of redwood logswhose characteristics resemble their historic predecessorsand the increased recognition of redwood’s environmentalattributes have laid a foundation on which the companyplans to build. The Redding mill has the machinery to pro-duce all patterns in the CRA pattern book, and can matchvirtually any pattern produced in the past 100 years. Thesiding business is growing, and the firm plans to make theinvestments necessary to market siding successfully.

Keep your eye on redwood in the siding market. Watchthe trends to see how architects and consumers approachand use high-end redwood.

REDWOOD’S NATURAL durability makes it a preferred choice for exteri-or applications.

CLEAR, VERTICAL GRAIN 1/2”x8” pattern 323R plain beveled siding isstacked for shipment.


LOOKING FOR WAYS to increase traffic on your compa-ny’s website or Facebook page? An online contest can

encourage customers to return to your site—and even getthem to share it with others.

“Years ago, contestants mailed their entries and photosin,” says Chris Fox, marketing manager at Universal ForestProducts. “Those days are over with the advent of turnkeywebsite tools.”

For the past three years, UFPI has run its best deck con-test through its Deckorators website. “We don’t want toexclude builders or d-i-yers that aren’t currently usingFacebook,” he says. “This may change in the near futurewith more builders promoting their business through socialmedia activities.”

Conducting the contest through its website also alloweduploading of large photos and comments from builders andconsumers without any restrictions. “Facebook places certainrestrictions on contests and sweepstakes, which can be a sig-nificant hurdle,” says Fox. “You must use an approvedFacebook application or risk having your account suspended.”

MANAGEMENT TipsOnline Contests

Boost customer relations,sales with online contests

ACCEPTING SUBMISSIONS online has made participating in and oper-ating contests, such as TimberTech’s Deck Disaster promotion, easierthan ever.

However, submitted photos are periodically posted onDeckorator’s Facebook fan page, as are contest winners.Past contest photos are also posted on Deckorators’ Flickrpage. By using more than one kind of online media, UFPIensures that online visitors remain interested andengaged—in both the contests and in the company’s prod-ucts.

A successful contest will encourage communicating,subscribing, and sharing—all of which will increase trafficto your company’s site. Just make sure social media buttonsare prominently displayed and easy to use. Another way tobuild traffic to your site is to let online visitors rate contestentries, but be prepared to handle and post the feedback.

Viance keeps online visitors interested in its EcolifeFish-More Deck Challenge by awarding monthly prizes.Professional deck builders and d-i-y-ers enter the contest bysubmitting photos and material receipts through the Ecolifewebsite. The best entries are posted online, showcasing thecompany’s decking products.

“We are excited to review the creativity of deck buildersand homeowners across the country,” says ChristopherKollwitz, director of marketing at Viance.

Once the final prizes have been awarded, Viance main-tains interest in the Ecolife brand by posting photos of thebest entries—providing inspiration for potential customersand creating an audience for the next contest.

Building and maintaining a fan base is one of the mainreasons to conduct an online contest. That was the goal ofCertainTeed’s contest, which is conducted on its newLiving Spaces Facebook page—which, in turn, promotesthe company’s exterior building products to consumers.

“This is our first major effort at social media,” says KenWarshaw, director of marketing communications forCertainTeed’s siding products group. “Building ourFacebook community was the motivation for the contest.”As for dealing with Facebook restrictions, he says that appsfrom third-party companies are needed to run contests onany social media site.

To enter, homeowners upload 30 to 90 second videosshowing why their home needs a facelift. To keep onlinevisitors engaged, the top 10 videos will be chosen byFacebook users. CertainTeed will select the grand-prizewinner, who will receive exterior building products—including installation—and star in a “webisode” series thatwill be available on CertainTeed’s Facebook page and


DECKING PROJECTS have proven a populartheme for online contests staged by manufac-turers, wholesalers and retailers.

YouTube channel. WOLF Building Products also uses

Facebook to conduct its contests,which are offered twice yearly. Thisspring’s competition introduced thecompany’s new focus on American-made products. The winner—selectedat random from nearly 1,600 entries—received two free airlines tickets toanywhere in the U.S.

“We had an overwhelmingresponse to the contest, which drewfar more entries than either of our twoprevious sweepstakes,” says WOLF’schief marketing officer Jim Groff. “Itjust reaffirms the fact that contractorsand homeowners prefer high-qualityproducts that are made here at home.”

Although Groff acknowledges thatFacebook does have contest rules, hesays they are easy to follow. The con-test application required by Facebookwasn’t a problem either: it was devel-oped by the company’s outside webresource.

As for the focus of this year’s fallcontest, WOLF is soliciting sugges-tions from its Facebook fans. “Wewanted to start a conversation, a posi-tive dialogue about building prod-ucts,” he says. “We did all that withthe contests.”

How to Run aSuccessful Online

ContestBefore the Internet, conducting

a contest meant paying for printads and hoping people would takethe time to fill out an entryform—then actually mail it.

In contrast, online contests areeasier to participate in, easier torun, and a good way to learnabout your customers. But they dorequire a certain amount of prepa-ration: Determine your target audi-

ence and appropriate channels.Acknowledge the assets and limi-tations you have to work with.Take time to understand youraudience and what you expectfrom them. Think about theappropriate channel for engage-ment: brand website or blog,Facebook, Twitter, etc.Encourage creativity. User-

generated content such as photosand short videos help participantsengage with your products. Theyalso take advantage of the naturalurge to compete, giving partici-pants their turn in the spotlight. Make it easy to enter and

stay involved. Ensure that theentry process is easy to navigateand the entry requirements areclearly explained. A contest thatrequires participants to uploadphotos and videos on one plat-form, share through another, andvote on a third will generate con-fusion and frustration.Facilitate communication. A

contest is an opportunity toengage in an active dialogue withyour current and prospective cus-tomers, fans, and followers. Sharecontest updates, respond to ques-tions, and encourage participantsto share their entries and rally forvotes. Make sure appropriatesocial media buttons are promi-nently displayed.Collect information. If you

ask the right questions, you’lllearn a lot about your contestantsthrough the entry process. You’llalso learn a lot from the interac-tion and conversation that takesplace around the contest—if youtake the time to listen.


FEATURE StorySocial Media

COMMON BUSINESS WISDOM is thatretailers should have an active

social media presence to maintainconstant, interactive communicationswith their customers. For many deal-ers, however, the problem is that wordconstant. Most independents don’thave the time and manpower to sup-ply a daily flow of Tweets andFacebook posts.

So, their co-ops are beginning tostep in, to provide tools, content and

Co-ops help dealersexcel in social media

training. According to Jeff Gooding,director-consumer marketing for AceHardware Corp., “At a high level, weeducate our retailers on what Ace isdoing on behalf of the entire brandfrom a national level, as well as pro-vide them with best practices andtrends in the space.”

Specifically, Ace:• Provides retailers with a page on

acehardware.com, customizable fortheir store, showing the customer their

hours, services, brands, departments,special offers, events, etc.

• Offers feeds to all local searchengines to make sure member storesappear when customers are searchingonline.

• Utilizes a dedicated social mediasection of its intranet to post informa-tion on Ace’s efforts and providesbest practices for its stores.

• Educates its field marketing staff

DIGITAL DISPLAY hangs from the ceiling of Ridgefield Supply Co.,Ridgefield, Ct., to broadcast branded, zoned digital content highlighting

the dealers’ suppliers, products, services, and Twitter feed.

Photo by

Spe

ctrio


through monthly calls, so they areable to answer retailer questions in thefield.

• Hosts training sessions at itsnational conventions twice a year,educating dealers on what the co-op isdoing in the digital space.

• Meets throughout the year withdealer groups for updates and educa-tion.

Grand Rapids, Mi.-based Progress-ive Affiliated Lumbermen has beenheavily promoting the use of socialmedia to its members, starting with itsmonthly webinars for retailer mem-bers and featuring social-media pre-senters at its annual show.

“We continue to pass on best prac-tices or good ideas from our membersto other members,” said Joe Myers,membership service manager forPAL. “One member received 1,400‘likes’ when they ran an Ugly KitchenContest in their market. At last count,we have 70% of our members withsome level of Facebook page for theircompany.”

Wayne, Pa.-based LumbermensMerchandising Corp. has also beenexperimenting with a way to stretchits members’ social media arm—evenafter customers have walked throughtheir front door. LMC members haveteamed with Spectrio to install indoordigital signage that can promote theirTwitter and RSS feeds and Facebookpages.

LMC members Ridgefield SupplyCo., Ridgefield, Ct., and EconomyLumber Co., Campbell, Ca., werealready Spectrio customers, using thetech firm’s on-hold messaging ser-vices, when they began looking intodigital signage. The in-showroomscreens display their social mediafeeds, highlighting current specialsand video ads, along with local infor-mation, news and entertainmentitems.

“We are now at a moment wherethe costs for flat panel screens hasdropped so low that they have becomea viable option for many small busi-nesses, include lumber dealers,” saidAaron Kleinhandler, c.e.o. ofSpectrio. “Our VideoCasts usuallycost around $75 and $150 a month,with some of our customers updatingtheir displays more frequently thanothers. The outside feeds arerefreshed daily, and dealers’ messag-ing can be varied by time of day.”


ASTORIA, OR., is a feisty little cityhugging a bay etched into the

Pacific coastline that separatesOregon from Washington. (Well,boasting a population of just 10,000,one’s tempted to call it a fishing vil-lage.)

Indeed, that’s a major industryhere, where the wild Columbia Rivermeets the sea—where nature is sounruly that episodes for Ax Man andDeadliest Catch have been filmed forreality TV. Earlier, it charmed andunsettled Lewis and Clark in equalmeasure when they arrived in 1806,making it the oldest northern settle-ment west of the Mississippi.

City Lumber Co. wasn’t a projectof those explorers’ axes, however,but—launched in 1904, it can layclaim to being the oldest lumberyardin the state—abetted, in large part, byall those fisheries that needed boxesfor the cannery (another stat: thelargest in the country).

After a succession of owners—some more savvy than others—in1975 it caught the eye of JerryNewenhof, an entrepreneurial typewho’d previously managed a ware-house, served as Sheetrock buyer andas manufacturer’s rep for ceiling tiles.His focus, until his death in 1995, wason the folks in town who needed hisservices: a strong retail thrust. Andthat’s what continues to drive City’sbusiness today, recently voted BestHome Improvement Store in Astoria.

Sons Greg and Jeff, who grew upsweeping sawdust and stockingshelves, have pledged to continue thatlegacy—well, after they took it on astheir life’s calling. Finishing college,Greg decided to take the summer offto bum around, until an injury at thestore found Dad on the phone with a

City slicker

COMPETITIVE IntelligenceBy Carla Waldemar

plane ticket back. Jeff’s post-collegedream was to play golf on all coursesin the state. “I got to two or three”before he, too, was corralled. Noregrets, they swear. It’s all they knowand all they love.

Greg manages purchasing, payrolland accounting, while Jeff overseesadvertising and sales. “I’m the onewho gets to talk on the phone,” hesays on the phone. (He’s also the onewith the Internet savvy, which we’llget to later.)

And, although they haven’t beentapped by the cameramen yet, thebusiness of keeping a home-centerbusiness afloat—nay, prosperous—inthis day and age tops many a survivorchallenge on reality TV. Yes, busi-

ness admittedly is down 30%, but,true to Dad’s ethos, all 11 staffers arestill on board. “We’ve never laid offanyone for lack of work—part ofDad’s philosophy,” says Jeff. “And ifwe did, it’d take a couple of years toget a new employee up to speed.(Besides, we’re operating in theblack; we’re very careful.”)

Close to 70% of City Lumber’sbusiness is generated by small remod-elers and the town’s valiant d-i-ybrigade. Despite close quarters (“at6,000 sq. ft., we’re jammed to therafters”), City offers a full panoply ofbuilding products: fancy and com-modity lumber, myriad types of ply-wood, molding, roofing, insulation,tools—and tool rental—and the list


Carla [email protected]

department, or a sander when you buy floor stain.The Home Depot behemoth that arose five miles away

doesn’t present a problem. But just before it opened, City’spurchasing partner, Do it Best, cautioned to expect a 20-percent drop in sales. “But the first month, we were onlydown $1,000,” smiles Jeff. Chalk up a win for superior ser-vice. (And when you check the excellent website,www.citylumber.com, you’ll quickly find a list of above-and-beyond services, from propane exchange and pelletstorage after payment to pipe threading and key cutting.Yet, the list leads off with “free popcorn.” Gotta love it.

Another business driver is City’s Best Rewards Club,offering participants $5 off every $250 in purchases, plusnotices of special, members-only sales. And how about theannual chance to win $1,000 in a shopping spree? (Again,check out the website; this year’s winner looked prettydarn ecstatic.)

Jeff’s the go-to guy for the web. “It’s my baby, Iguess,” he allows. “We segued from our first computer in1983 to a software feature today designed to facilitateonline sales.” City (okay, Jeff) also makes good use of thecompany’s Facebook page and keeps folks titillated withTwitter tweets, such as a recent “Sign of spring, just likethe swallows returning Capistrano: The Adirondack chairshave arrived.” “We tweet to announce new products, butwith a sense of humor because a simple hard sell getstuned out.”

But City Lumber has not abandoned print. It distributesa monthly Do it Best circular and also has made a practiceof purchasing the back page of the newspaper’s TV sec-tion. But just this week, a deal at no higher price enticedCity to move its message to a full page every Friday, tocatch the eyes of the Weekend Warriors about to gear up.

All forward moves in trend with the times. But the bestpush forward ever, insist both brothers, came in 2006 whenthey attended a trade show that allowed them to reevaluatetheir purchasing partner and—bottom line—switch to Do itBest. “Our former buying association hadn’t been honestwith us, so we started looking around,” says Jeff.“Changing to Do it Best was one of the best moves ever.After making the switch, our business tripled. We onlywish we’d done it earlier. It was an eye-opening experi-ence, offering us a huge variety of products with consistenttracking and deliver service, and a store design crew whenwe were thinking of expanding, including a survey of3,000 of our customers.”

(Respondents, ironically, insisted they they alreadyloved, loved, loved City Lumber: “Gratifying to have ourown feelings reinforced,” allow the brothers.)

And the future? “Things are starting to bounce back.Oregon is always behind the rest of thecountry, so when other dealers weremoaning in 2008, we were stilldoing fine. Now, it’s down some.But I’m 52, and I plan to stickaround. And my son, Jerry, who’s8, comes in to pop the popcorn andpick up nails—just like I start-ed, a lifetime ago.”

AT 108, Astoria, Or.-based City Lumber Co. lays claims as the state’soldest lumberyard.

goes on. A popular home décor department, launched earlyon by the brothers’ mom, flourishes with everything fromcabinets and lighting to wallpaper and paint, with in-homemeasuring services offered.

Lawn & garden also has taken off. The building’s exte-rior is lined with dozens of pallets of soil, bark andmulch—plus vibrant pots of posies. “They add a spot ofcolor—the only one on the block—which sets us apart andbrings in traffic.” As do the front-and-center Weber grillson sale and also utilized by vendors cooking treats for thepublic as they showcase their latest and greatest—anotherfacet in that “Best in Town” award.

Other contributors: Backed by Dad’s emphasis on ser-vice, “We greet people at the door and take ’em to whatthey need, and either my brother or I am always on thefloor,” says Jeff. The service ethic continues to loading anddelivery (take that, Home Depot!), so when you order 25bags of concrete and scores of heavy pavers, there’s aboom truck at the ready. Plus a cement mixer in the rental


Creativity, New Ideas, Best Practices. Because brokerstalk to many different businesses, they are exposed to moreideas than the average person. A good broker always asksquestions about what is working. A good broker will keephis accounts up to date on all changes in the market, be itprice, product and other trends.Risk Insurance. Having all our supply eggs in one bas-

ket is risky. Brokers are a good balance against supplyproblems (from a single source).Market Insurance. The broker who takes positions in

the market takes the risk out of the market for their clients.The position of the position-taking broker is, “I am alwaysahead of the market—heck, I make markets—therefore Iwill always be your most consistently competitive option.”Proprietary Relationships. Brokers can get accounts

into suppliers that are beyond their reach for whatever rea-son. Accounts can also use brokers to buy from supplierswith whom they have a poor relationship.Flexibility. Brokers can supply flexibility on terms. Not

all, but many, brokers will give preferential terms.

Broker Value Example: We are experts at ______ and______. We have lifetime relationships with producers.These producers count on us to move X amount of productfor them every month. We have access to lumber that theaverage broker doesn’t because we are close to and livewith the suppliers.

In addition, we have a fleet of truckers who work for usexclusively. While many are having trouble booking loads,we are able to get our customers’ productwhen needed.

We also run many programs andcontracts that allow us to mix andmatch tallies for our customers thatare otherwise difficult to find. Theseprograms also keep our customersconsistently competitive.

We are financially strong.We have grown with our cus-tomers, in very competitivemarkets, and continue to do so.What’s your value proposition?

OLSEN On SalesBy James Olsen

James OlsenReality Sales Training

(503) [email protected]

Why you?EVERY SEGMENT of the lumber industry has a value

proposition: the mill, the remanufacturer, the officewholesaler, the hybrid office/inventory-on-the-groundwholesaler, the full-service wholesaler, the retailer, and thespecialty retailer. Whoever we are, we must be able toknow and articulate (sell!) our value.

Let’s talk about the wholesale distributor and brokervalue. They are similar. What value does a good brokerbring?Credit. Most accounts want to use more money than

their bank allows. Using a broker can expand and leveragea customer’s credit.Time. It takes time to stay on top of markets. Brokers

spend 100% of their time thinking about—living in—themarket. A good broker is looking for deals for us all thetime.Non-standard Product or Delivery. Producers usually

have a production mentality. Producers want to sell theirproduct the way it comes out of their plant. When cus-tomers need a customized tweak, brokers can often bridgethe gap.

Example: The mill produces 2x4 in ratio 1-1-2-3-4-4.That is the way they want to sell it. If the customer wants tobuy it 0-0-0-6-10, often a broker will sell the shorts to onecustomer and sell the longs to another. Consistent Quality, Competitive Price. If the customer

wants consistent quality at a competitive price, brokers area good option. Buying from a single high-line producerwill solve the quality issue, but may leave the customeruncompetitive. If the high quality producer is on anotherproduct when the need arises, or has sold their productionto a higher price level, consistency will be difficult. A bro-ker will be able to keep us in a variety of high-quality prod-uct, competitively priced, on a regular basis.Expertise. A broker may have an expertise in a product

or market that is foreign to the buyer. A buyer or businessowner may buy 150 products, whereas the broker may dealall day with six to 10 products.Global Market Knowledge. Producers see the market

from their point of view. Customers see the market fromtheir point of view. A broker has the advantage of seeingthe market from many points of view. Hustle. A single supplier can hustle only so much; they

have fewer options. A broker has many options to “hustle”for the account.Negotiation Expertise. Brokers are expert negotiators

(or should be). If the account does not want to or is notgood at negotiating, using a broker is a great option.


FAMILY BusinessBy James Olan Hutcheson

ONCE UPON A TIME, family business patriarchs had iteasy when it came to deciding who would take over

the family business.Centuries-old customs required that the eldest son

received control of the family business upon the death ofthe father. No one ever retired. Business literally lived ordied based on the often-unknown management skills of themale heir, which often were not revealed until dad died.

Today, family business succession is handled with moreforethought and under the greater scrutiny of inheritancelaws. Affluence, combined with people living longer com-plicates the difficult decisions of when and how to pass thereins of the family business—with the least harm to thebusiness and family.

The question of who gets to run the family business iscomplicated, of course, by relationships within the family.Numerous clients have confessed that they are troubledabout how to pass the business without destruction. Whilemany still plan to be an integral part of their business forseveral more years, they realize that their desire to worklong hours had waned in recent years. They are slowingdown. What worries many of them is deciding which of theheirs will make the better leader in the long run.

One client commented that he felt “a little like Solomonin the Bible, trying to divide my baby, my business,between two heirs. Somehow that seems almost easier thanpicking one over the other. I love what I do,” he said, “butI don’t see that same passion in either my daughter or son.”

But that passion might actually be there, just displayedin a different way because each person has a unique per-

It’s my turnsonality. Indeed, the heirs may be eager to have their turnat running the business. These kinds of dilemmas are farfrom unusual, and they underscore the very subjectiveemotions that cloud the business choices a senior familymember must make about the future of the business.

If it’s any comfort, the challenge of passing on the fami-ly business is a worldwide problem. A family feud overwho should run the Hyundai Group, South Korea’s largestconglomerate, brewed up a dispute that involved thenational government. Finally, the 84-year-old founder ofHyundai appointed one of his sons as the sole group chair-man to end the family squabbles. But this decision came inthe face of a national movement to discourage familydynasties that do not involve shareholders and board mem-bers.

The image of passing a baton on to the next person in arelay race is a familiar one. It is an apt image for business-es in which a family business leader hands over the respon-sibility to a child. Even under the best of circumstances, itcan be a difficult and awkward time of transition.

For the elder leader, it means giving up control not onlyof the business but also of the parent-child relationship.The relationship rarely stays the same at home once controlis relinquished at the workplace. Moreover, the parentbecomes dependent upon the success of the business in adifferent way and may feel vulnerable to the business deci-sion being made by the child.

As in a relay, once a runner passes the baton, he spendsthe rest of the race as spectator and cheerleader, but nolonger contributes directly to the outcome. For an entrepre-neur who feels he has been the sole motivator for the birthand continued success of the business, this new limited-partnership role requires a new understanding, a newpatience. Furthermore, few people are prepared for theslowing down that all of us should expect as we get older.

It is important to see that a relay race is the perfectmetaphor for life. We humans are designed to pass on ourknowledge and possessions from generation to generation.The human lifespan is a natural cycle that begins with aperiod of development and learning followed by a longmiddle period of accrued experience and activity followedby a gradual diminishing of energy and ability. When asenior family member acknowledges this natural cycle, thetransition can be accomplished with less strain and less

(Please turn to page 30)


DEALER BriefsTweedy & Popp Ace Hard-

ware, Seattle, Wa., closed its 5-year-old Richmond Beach, Wa., store May13 and wil l open a new store—Edmonds Hardware & Paint—in nearby Old Milltown on Aug. 1.

AG Supply Co., Wenatchee,Wa., held a grand opening last monthat its 6th Ace Hardware branch, inSultan, Wa. (Chuck Estes, mgr.)

Ace on Fax opened a 16,000-sq.ft. Ace Hardware franchise inDenver, Co. (Mary and Mike Cottrell,owners).

Peach Tree True ValueHardware, Grand Junction, Co., isbuying a 70,000-sq. ft. site in Fruita,Co., to build its 2nd location.

Navajo Westerners AceHardware Stores is remodeling itsstores in Window Rock and Kayenta,Az., to mimic the look and product mixof its new flagship location in Chinle,Az.

Tri-State Ace Home Centerrelocated its Bullhead City, Az., store toa larger, 20,000-sq. ft. facility.

Kenyon Nobel Lumber &Hardware, Bozeman, Mt., held aMay 12 grand opening for its new gar-den center.

HomCo Ace Hardware, Flag-staff, Az., has earned FSC chain-of-custody certification from ScientificCertification Systems.

Pacific States Taking OverHoquiam Plywood MillPacific States Industries, San Jose,

Ca., has acquired Hoquiam Plywood,Hoquiam, Wa., and had hoped torestart the facility by the end of May.Formerly owned by a co-op of 100

employees, the mill closed late lastyear due to poor market conditionsAccording to general manager

Mark McFeely, the facility has beenrenamed Hoquiam Plywood Productsand expected to rehire roughly 60workers.

Millworkers Douse BlazeBefore firefighters could arrive,

employees at Stimson Lumber Co.,Gaston, Or., were able to extinguish asmall sawdust fire in the mill’s power-house May 1.

Once on the scene, firefighters dis-covered that millworkers had knockeddown parts of the wall to douse theblaze, as well as all hot spots.

“Most of our guys didn’t even gointo the building because Stimsoncrews had it knocked down,” saidspokesman Ken Bilderback. “Theiremployees did a great job.”

Amid Bankruptcy, LumberProducts Readies for LayoffsLumber Products, Tualatin, Or.,

will lay off 65 workers, including itschief financial officer and vice presi-dent of sales and marketing, June 29. The company filed for Chapter 11

bankruptcy protection in April, withdebts and assets ranging from $10 mil-lion to $50 million. Most of the affect-ed employees work at headquarters, in

the company’s accounting, humanresources, and sales divisions. Workers own a majority stake in

the company, through a stock owner-ship program started in 1986.Members of the Hall family, whichfounded the company 75 years ago,control an 11.1% share. In addition to its Tualatin base, the

company operates eight distributionbranches in Washington, Idaho, Utah,Arizona, and New Mexico.“Lumber Products does not antici-

pate an increase in its operations (andworkforce) in the near future, andthus, expects the upcoming layoffs tobe permanent,” wrote Chapter 11Trustee Edward Hostman.

Western Lumber ProducersCautiously Optimistic

Lumber sales in the Pacific North-west are slowly rebounding, but insid-ers predict that a full recovery fromthe housing slowdown will take years.

“People call it the Great Recession,but for this industry it was the GreatDepression,” said Allyn Ford, presi-dent of Roseburg Forest Products,Roseburg, Or. “We’re talking about aslow and steady increase, which givesus the opportunity to get back on ourfeet. It’s not going to be the boom-bust thing we’ve experienced in thepast, but it should be a slow andsteady increase.”

Weyerhaeuser, Federal Way, Wa.,is also feeling optimistic. “We expectincreased revenue in the second quar-ter, compared to the first quarter,” saidspokesperson Anthony Chavez. “Wealso anticipate that volumes will

increase by 10%.” He cites several reasons for the

gains, including new domestic andinternational customers, more efficientmills, and rising multi-family demand.

Other producers report smallergains, but remain cautious. “We’re notgoing to see any huge uptick in thenear future,” said Ken Maurer, RSGForest Products, Kalama, Wa.

Sawmills throughout the West pro-duced 3.1 billion bd. ft. of lumber inthe first three months of the year, amodest 2.8% gain compared to thesame period in 2010, according to theWestern Woods Products Association.Production at inland mills increasednearly 10%, and 0.5% at coastal mills.


Osmose has agreed to beacquired by Oaktree CapitalManagement, Los Angeles, Ca.Osmose’s existing management

team, led by president/c.e.o. JamesSpengler, will remain.

Kelly-Wright Hardwoods,Anaheim, Ca., inked a 5-year lease torelocate to a 62,650-sq. ft. DC on 3.8acres in Brea, Ca.

Merritt Bros. Lumber Co.,Athol, Id., shut down one day and sus-tained slight damage to a truck trailerfrom a May 3 fire that started in a saw-dust hopper.

Capital Lumber’s DCs inDenver, Co.; Salt Lake City, Ut.; Dallasand Houston, Tx., are now distributingRailing Dynamics’ new pre-assembled RDI Metal Works Excaliburrailing system.

Screw Products Inc. , GigHarbor, Wa., has signed FeldmanWood Products, Garden City, N.Y.,as a new distributor for its fasteners.

McFarland Cascade, Tacoma,Wa., is proud to announce that itsTerratec Composite decking receivedan evaluation report (ESR#2051) fromICC Evaluation Service (ICC-ES), pro-viding evidence that the ricehull/recy-cled plastic composite decking meetscode requirements.

Redwood Empire, San Jose,Ca., has launched a new website—www.buyredwood.com—as part of anew marketing campaign to emphasizethe increased availability of upper-grade redwood. The site provides the distribution

community, architects, contractors andhomeowners with information on theenvironmental attributes and naturaldurability of redwood.

Eastman Chemical Co.’sPerennial Wood received honorablemention for the MEDIUM Award forMaterial of the Year from MaterialConneXion.

Deceuninck North America’swindow products have beenGreenCircle certified for recycled con-tent and closed-loop products.

SUPPLIER BriefsLiteSteel Packs It In

Australian steel manufacturerOneSteel has shuttered its LiteSteelTechnologies light structural beambusiness.

LiteSteel’s three-year-old plant inTroutville, Va., discontinued produc-tion March 30.

Although the division was unableto turn a profit marketing “the firstnew structural building product to beintroduced into the U.S. market sinceengineered wood,” it reportedlyachieved 70% recognition in a mainlycommodity market.

Redding Lumberyard Movesto Former Competitorʼs Home

Weaver Lumber has moved acrossthe street in Redding, Ca., to a site for-merly occupied by Moss Lumber &Hardware, which closed last Augustafter 65 years of business.

“I want to make sure that peopleknow I feel a lot of humility to begoing over to that side,” said ownerBrent Weaver.

“We were always competitors, butwe also did a lot of business with eachother,” said Charlie Moss. “We would

work together. We weren’t at eachothers’ throats at all.”

In the months after Moss went outof business, Weaver acquired its storeinventory and truss business from theholding company that had purchasedMoss’ assets.

“It was really the truss business thatgot the ball rolling,” said Weaver. “Iwas always interested in the trussbusiness because it was the last piece Ineeded to complete the full circle ofour services.”

Helicopter Forestry Firm SoldWilbur-Ellis Co., Walnut Creek,

Ca., has acquired the assets of Farm &Forest Helicopter Service, Napavine,Wa.

Acquisition of the 48-year-oldFarm & Forest will increase Wilbur-Ellis’ footprint in the region, expandits aerial application services, and addto its forestry customer base in theNorthwest. The new acquisition willbe a part of the Agribusiness Divi-sion’s Northwest operations.

For the last 15 years, Wilbur-Ellishas provided Farm & Forest withforestry protection products.

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Denny McEntire, sales & procure-ment mgr., Mendocino ForestProducts, Ukiah, Ca., has retiredafter 50 years in the industry, thelast four with Mendocino.

Denise Bough, ex-LiteSteel Techno-logies, is a new industrial sales repat Ganahl Lumber, Corona, Ca.

Christine Myers has joined Fiberon,New London, N.C., as a productspecialist for Colorado.

Charley Willett, sales mgr.,Sundance Lumber, Springfield,Or., has retired after 14 years withSundance and 44 years in theindustry.

Steve Carillo, ex-C&S Wood Pro-ducts, is a new industrial trader forBridgewell Resources, Bend, Or.

Drew Pittman, ex-LowGrade-Lumber, has joined the sales staffat Idaho Timber Corp., Boise, Id.

Rich Mills, ex-Taiga, is now VMInational accounts mgr. at BoiseCascade, Boise, Id. RonMacAskill, ex-BlueLinx, hasjoined Boise’s Riverside, Ca., DCas general line product mgr.-steel.

Mike Hamor, ex-Lumber Products, is

MOVERS & Shakers

Robert Fritz is new to inside sales atProBuild Holdings, Denver, Co.

Todd Newman, ex-Lowe’s, hasjoined the outside sales force atHonsador Lumber, Ewa Beach, Hi.

Michelle Combs, ex-Moulding &Millwork, has joined OrepacBuilding Products, Denver, Co., ashome center coordinator.

Jim Mathews, Quality Assurancemgr., Western Wood ProductsAssociation, Portland, Or., hasretired after 25 years with WWPA,following 17 years with Weyer-haeuser.

Brian LaFave, ex-Hitachi PowerTools, is a new specialty fastenerrep for Simpson Strong-Tie, serv-ing Colorado, Utah, SE Idaho, andWyoming.

Ryan Adams has been named seniorproduct cost controller for TimberProducts Co., Springfield, Or.

Monty Huddleston, ex-Ply Gem, isnow territory mgr. at MilgardWindows & Doors, Tacoma, Wa.

Nick Miller, ex-Lowe’s, is a newfield account rep with HD Supply,Phoenix, Az.

a new account mgr. at CapitalLumber, Tacoma, Wa. LynnGoode, ex-Fiberon, and ScottShamrell are new account mgrs. inPortland, Or.

Roger Ricks, ex-J.M. Thomas ForestProducts, has been named mgr. ofAlpine Lumber Co., Farmington,N.M.

Thomas Rogers, ex-Sherwood Lum-ber, has joined Patrick Lumber,Portland, Or., as export sales mgr.

Tom Klindt, ex-ProBuild, is nowproject center mgr. at KenyonNoble Lumber & Hardware,Belgrade, Mt.

Greg Stout, ex-AZEK Building Pro-ducts, has been named territorysales mgr. for Southern Californiaat Boral TruExterior, Murrieta, Ca.

Greg Golovko has joined OrchardSupply Hardware, San Jose, Ca., asv.p.-corporate controller.

Brian Thom is a new window salesconsultant at Bruce Bauer Lumber& Supply, Mountain View, Ca.

Tim Davidson has been named gen-eral mgr. of Westlake Ace Hard-ware, Roswell, N.M.


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Todd Morben, ex-Lowe’s, is new toStanley Black & Decker, as territo-ry account mgr. for Colorado, NewMexico, Wyoming and Nebraska.

Eric Abrego has joined the outsidesales team at Pacific Supply,Boise, Id.

Charles Salzman has been appointedchief financial officer for NewWorld Millworks, Castle Rock,Co.

Jeff Jensen, ex-Contractors WindowSupply, is new to Northern Cali-fornia sales at Western WindowSystems, Roseville, Ca.

Bob Thompson retires June 28 fromWestern Forest Products, Vancou-ver, B.C., after 38 years.

Karin Emery, ex-Ply Gem Windows,is now customer service mgr. forMikron Industries, Kent, Wa.

Scott Sproul has been promoted tonational retail performance mgr.for Do it Best Corp., Fort Wayne,In.

Nicholas Kirt, ex-Caesarstone, is anew building insulation field salesrep for Knauf Insulation, for theDenver, Co., area.

Ted Stock, president, WesternCascade Industries, Toledo, Or.,has been elected president of theboard of the West Coast LumberInspection Bureau.

Bill Greenwood has been hired asexecutive director for NorthernArizona Wood Products Associ-ation, Eagar, Az.

Bob Spagnolo, LowGradeLumber,Springfield, Or., competed May 31on the TV game show Wheel ofFortune.

Turner Hoff is the new companyelectrician at Mungus-FungusForest Products, Climax, Nv.,according to co-owners HughMungus and Freddy Fungus.

Trex Teams Up onComposite Decking Blade

Trex Co., Winchester, Va., hascut a licensing deal with Diablotool manufacturer FreudAmerica, High Point, N.C., tointroduce the first saw bladespecifically designed for cuttingcomposite decking materials.

The Diablo/Trex co-brandedblade will be offered in threesizes—12”, 10” and 7¼”—foruse on hand-held, miter and tablesaws.


SP Design Values Go into EffectEffective June 1, it’s important for lumber dealers to

understand that some—not all—grades and sizes of visual-ly graded southern pine now have new design values.Earlier this year, American Lumber Standard Committee’sBoard of Review approved the design values changes sub-mitted by the grading rules-writing agency, the SouthernPine Inspection Bureau.

The only design values that changed on June 1 apply tovisually graded Southern Pine and Mixed Southern Pinesized 2” to 4” wide and 2” to 4” thick (2x2s through 4x4s)in No. 2 and lower grades (No. 2, No. 3, Stud,Construction, Standard and Utility). This also includes newdesign values for No. 2 Dense and No. 2 NonDenseSouthern Pine.

Design values for all other grades and sizes of visuallygraded southern pine remain the same, pending results oftesting scheduled for completion later this year. As a result,SPIB issued Supplement No. 9 to the 2002 StandardGrading Rules for Southern Pine Lumber providing thenew design values, effective June 1, 2012.

The new values represent a 25% to 30% reduction inload-carrying capacity.

The last major change for visually graded dimensionlumber occurred in 1991, when design values for southernpine and other North American species were publishedbased on in-grade testing of full-size samples of commer-cially produced lumber. Since 1994, SPIB has conductedan annual resource monitoring program developed in col-laboration with the U.S. Forest Products Laboratory.

SPIB is the first rules-writing agency to publish newdesign values reflecting these changes. Rules-writing agen-cies responsible for other species are in different stages forevaluating design values.Dealers have options

Lumber dealers need to understand that, in spite of thelower design values now in effect, options exist for usingsouthern pine materials. One option is to specify that a cus-tomer use a larger size and/or higher grade of visuallygraded southern pine lumber. Another option is to usemachine stress rated lumber and mechanically evaluatedlumber.

Those in the building supply chain also need to under-stand that design values for mechanically graded lumber,timbers and specialty items did not change. For all prod-ucts, sources of supply can be found within SFPA’s onlineProduct Locator at www.southernpine.com. What about codes?

New design values are incorporated into the building


OOlldd WWoorrlldd CCrraaffttssmmaannsshhiippIInn TTooddaayy’’ss DDeessiiggnnss

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Geo. M. Huff Lumber Company is now offering Hand HewnDistressed Timbers in a variety of sizes, shapes and lengths.

All our distressed beams are WCLIB grade stamped and will meetstructural and architectural applica-tions. All are hand tooled and can beordered with custom stains and OldWorld finishes.

We can supply timbers to any spec-ification, whether it is Dense, Free ofHeart Center, #1/Btr, SelectStructural, Green or RFV Kiln Dried.

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codes by reference through theNational Design Specification (NDS).The American Wood Council (AWC)has issued an addendum to its DesignValues for Wood Construction, a sup-plement to the NDS, referencing thenew southern pine values.

AWC is submitting new span andapplication tables to the InternationalCodes Council, as well as proposingother code and standard changesneeded to incorporate new design val-ues into the building codes.

State and local code jurisdictionsdetermine adoption and enforcementtimelines. Rules-writing agencies areresponsible for making new designvalues publicly available uponapproval by the ALSC Board ofReview. SFPA and AWC are activelyassisting these efforts by providingthe new information to the design,specification, user and enforcementcommunities. It is then the responsi-bility of building code jurisdictions todetermine how and when to beginenforcement.

Important next stepsThroughout the transition period

and moving forward, SFPA has con-tinued to provide more information asit becomes available. Check southern-pine.com frequently for updates.Dealers will find many of their ques-tions answered by reviewing a com-prehensive set of Q&A on the site;visit the page tagged New DesignValues.

“Since last fall, SFPA has workedclosely with organizations represent-ing lumber dealers to keep theminformed of the market implicationsthese changes might have,” saysCathy Kaake, SFPA’s senior directorof engineered and framing markets.“The intent of the six-month transi-tion period was to allow the market-place time to begin to use the newdesign values or switch to othersouthern pine grades or sizes meetingstrength and stiffness requirements.”

SFPA does not test lumber orestablish design values. Its primaryfunction is to market lumber productsand to help users understand southernpine grading rules and design values.

Moving forward, the southern pineindustry will fill out the full in-gradetesting matrix, sampling SelectStructural 2x4s, No. 2 and SelectStructural 2x8s, and No. 2 and SelectStructural 2x10s. SPIB and TimberProducts will conduct destructive testsin bending, tension and compression,

plus gather stiffness and propertydata. Following this in-grade reassess-ment, southern pine will continue tobe annually monitored with destruc-tive tests.

Southern pine’s strength remainscomparable to other softwood speciesused in residential and commercialconstruction. “The strength and supe-rior treatability of southern pine lum-ber against decay and termites contin-ues to provide a great value for manu-facturers, designers, builders and con-sumers,” Kaake notes. “The extensivetesting protocols used assure that

everyone involved in the specifica-tion, sale and use of our products hasthe most current information abouthow southern pine lumber can be usedconfidently and economically.

“Component manufacturers,treaters and design-build profession-als have many southern pine productoptions available to them. These cus-tomers can achieve the required prod-uct performance by identifying a par-ticular design value, choosing from anumber of visual grade selections, orspecifying their choice of mechanical-ly graded lumber.”

Three Things I’ve Learned: Tips from Seasoned Pros

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stress. Succession isn’t necessary the result of a “crisis”within the family business.

Another complication can occur when the family busi-ness leader maintains financial control of the companywhile turning the day-to-day operation over to anothermember of the family. Power is divided, and the next gen-eration tier isn’t fully able to independently change orexpand. The now-former c.e.o. may be also obligated topay employees and other overhead expenses even if thecompany experiences a downturn as the result of the transi-tion. The time-worn issues involved with parent-childbonds of dependence are also a factor, with the child tryingto establish new roles of independence.

As with the relay race, planning ahead is the key to suc-cess. Know your runners and their individual strengths.Who is the fastest at the start? Who has a sustained start?Who has a strong finish? In a family business, skills need-n’t be dropped just because one family member is in transi-tion to a position of less involvement.

The timing of any business transition is critical.Procrastination can become a healthy attribute when you’retrying to have the business suffer as little chaos as possiblefrom any transition of power. In other circumstances, such

Family Business: It’s My Turn(Continued from page 20)

FOUR MARINES—Ryan Rodriguez, Anthony Hodge, Adam Jennings,and Jordan Stoumbaugh—played in the 5th annual Don GregsonMemorial Golf Tournament hosted May 18 by the Southern CaliforniaHoo-Hoo Club at San Dimas Golf Club, San Dimas, Ca., which benefitsthe Wounded Warrior Project and the City of Hope. For more event pho-tos, see pages 38-39.

Romantic Lumberman Woos on TVTony Pieper, a lumber trader at Greenwood Products,

North Plains, Or., survived the first round of eliminationsas a contestant on the latest season of The Bachelorette. According to the show’s website, Pieper considers him-

self a romantic. “Very much so,” he is quoted as saying,“because when I am with someone who I think is very spe-cial, I’m always thinking about romantic things I can dofor them.”His romantic approach stood him well with the show’s

bachelorette, Emily Maynard, who was impressed when hearrived carrying a pillow bearing a clear, high-heeled shoe.“The name’s Charming, Prince Charming,” he said. Whenthe shoe fit, he added, “I think I’ve found my princess.” Pieper, 31, has been with Greenwood since 2004.

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Cary Hamilton, Hamilton Construction “Spend money once.”

How does Cary Hamilton weather the challenges of building high-end homes in Steamboat Springs, Colorado? For one, he uses pointSIX Durastrand Flooring with its innovative tapered edge. Learn why, along with other insights into creating success long-term, by watching “Three Things I’ve Learned: Tips from Seasoned Pros,” one in a series of short high-value videos from pointSIX and Ainsworth Engineered.

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as when a senior family executive’s declining powersresult in poor decision-making, speed can be essential. Inany event, it is necessary for the entrepreneur to work hardto plan a succession.

It’s important to realize that there is a window of oppor-tunity for a smooth hand off of power and control. Thechildren need time to develop the skill set necessary tocarry the business forward. They need the concentrat-ed mentoring of the outgoing c.e.o. or president. Similarly,the patriarch must realize that the children may want tomake changes in day-to-day operations. Change is natural,even when someone else initiates it, even by a son ordaughter.

The next generation needs to be allowed to take riskssimilar to what the senior entrepreneur took to gain his orher own competence and skill set. But watching the nextgeneration take risks with your business takes a certainamount of lip biting.

And don’t forget the post-transition problems. Now thatthe entrepreneur has less responsibility to the family busi-ness, and more leisure time, what will he do with the ener-gy and time once devoted to the business? Planning retire-ment and leisure time may actually be necessary.

A succession plan that involves both the new relay run-ners at the helm of the business as well as the entrepre-neur’s diminishing participation can help the business tran-sition go smoothly. Here are essential elements of a suc-cession plan:

Make continued business leadership a key goal. Thiscan be accomplished through a series of planned meetingswith family-member owners to discuss their goal, wishesand concerns.

Gather, analyze and share financial information on thecompany and on current owners, including ownership per-centages, tax records and tax commitments, value of thebusiness, and organizational structure.

Remember that taxes may be a key factor in any transi-tion of business. A comprehensive estate plan for any out-going shareholder should be considered.

Strive for a balance of equity. Answer these questionsdefinitively: How many business assets will remain withthe senior entrepreneur? How much will be passed ontoheirs, both inside and outside the company?

Work hard to clear up the major muddy area of howmuch parental authority will be exercised over the chil-dren. How much should the senior entrepreneur pass on tothe children? How much should these children be requiredto earn and do for themselves?

These are difficult questions that require objectivityand, therefore, generally require an outside consultant whohas no emotional investment. These objective decisionsmust be made in the best interest of the business.

Once upon a time, it was simpler. But today, with allthat is at stake and all the complications of the day, it’s awise leader who knows how to pass business responsibilityto his children. When asked who should run Ford MotorCo., Henry Ford said that “asking who will run the familybusiness is a little like asking who will sing tenor in thechoir—the tenor of course.”

– James Olan Hutcheson is managing partner and founder ofReGeneration Partners, a Dallas-based family business consult-ing firm. Reached him at (800) 406-1112 or www.regeneration-partners.com.

Reprinted with permission of ReGeneration Partners. No portion of this articlemay be reproduced without its permission.


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NORTH AMERICAN American Wholesale Lumber Association held itsfirst annual leadership conference April 29-May 1 at The Broadmoor,Colorado Springs, Co. [1] Carl Lamb, Jon Anderson. [2] Michael Dunn,Aly Kingsley, Scott Elston. [3] Steven & Elizabeth Rustja, T.R. Cauthorn.[4] Dave Destiche, Mary Lou Carlson, Mark Kasper. [5] Alden Robbins,James Robbins. [6] Steve Firko, Vicki & Carl Lamb. [7] Shelley & TomKohlmeier, Amy & Rob Latham. [8] Chris Beveridge, Jack Chase. [9]

Kathy & Larry Boyts. [10] Jim Hassenstab, Rose Castan, Traci & MikeMordell. [11] Brad Schneider, Karin Bates, Mike & Janet Phillips. [12]Bob Owens. [13] Ethel & Thomas Rice, Mary Ellen Owens. [14] SwarajPandey, Karen & Robert Turner. [15] David & Kimber Hutson. [16] KentBeveridge, Andrew & Rena Goodman, Josh Goodman. [17] JeannieEddins, Walter Russell. [18] Sam Sanregret, Barb O’Rourke. [19]Bethany West, Doug O’Rourke. (More photos on next page)

Photos by The Merchant MagazineNAWLA LEADERSHIP CONFERENCE


NAWLA LEADERSHIP (continued from previous page): [1] Gary &Karen Vitale. [2] Suzanne Hearn, Rick Ekstein. [3] Kathy & Bill Price. [4]Pam & Aaron Babcock. [5] Doug Colson, Todd Lindsey. [6] DustyHammack. [7] Penny Hammack, Ian & Julie McLean, Jim McGinnis. [8]John & Chris Cooper. [9] Ann & Steve Sprenger. [10] Cindy & Bill

Anderson, Amanda & Eric Anderson. [11] Steve & Barbara Boyd. [12]Linda & Barry Schneider. [13] Mary Ann & John Stockhausen. [14]Heath & Jeannine Hutchison. [15] Buck & Janie Hutchison. [16] RussHobbs. [17] Chuck Casey, Lt. General Russel Honoré. [18] Kevin &Lauren Ketchum.

NAWLA LEA

DERSHIP CONFERENCE

Photos by The Merchant M

agazine

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SOUTHERN CALIFORNIA HOO-HOO Club hosted5th annual Don Gregson Memorial Golf TournamentMay 18 at San Dimas Canyon Golf Club, San Dimas,Ca. [1] Mark Runyan, Larry Saathoff, MikeNicholson, Scott Middaugh. [2] Kevin McLernon, AlReed, Ted Smith, Joe DeRoest. [3] Genese Horan,Kimberly Kopsho, Myriah Horan, Betsy Bendix,Marcia Nicholson. [4] Lee Souza, Clay Hutton, WyattHutton, Steven Falcone. [5] Oscar Escobar, RonRobbins, Dan Nakauchi, Curtis Johns. [6] HankDickey, Chris Cottam. [7] Matt Manke, Miguel

Hernandez. [8] Jon Foster, Sang Pao Wang, PatrickMarkwith, Tony Arce. [9] Jeff Brown, Harry Heady.[10] Jim Make, Adam Manke. [11] Ken Hansen,Scott Whitman, Danny Sosa, Garry Deatsch. [12]Jack Butler, Ryan Lauterborn, Paul Corso, JohnAllen. [13] Guy Hargreaves, Jay Gregson, RobGregson, Rick Davisson. [14] Brad Olson, PeteMeichtry. [15] Rex Klopfer, Phil Dodson. [16] JoelLindquist, Greg Glover.

(More photos on next page)

Photos by The MerchantHOO-HOO GOLF


MORE HOO-HOO GOLF (continued from pre-vious page): [1] Greg Krakar, Rudy Russ, RichLittle, Patrick Franco. [2] Peter Howe, ChrisWischmann, Won Lee, Perry Lee. [3] FredGarcia. [4] Larry Luciano, Mitch Callaway,Kevin Witt, Dave Burnach. [5] Jim Gregson,Brett Gregson. [6] Bil l Ferguson, RussPrimrose, Robyn Ueberroth. [7] Neil Wierenga,Louie Mendez. [8] David Jones, LarryChristensen. [9] Jim Sloniker, David Tait. [10]Jamie Gordon, Rick Deen. [11] Bill Young, PatMcCumber. [12] Mike Miller, Rich Geary, Marc

Spitz. [13] John Henderson, Danny Andrea.[14] Rob Keyes, Steve Sadler. [15] FrankPaour, Bobby Gough. [16] Darrell Bustamante,Craig Larson, Jim Nicodemus, Dan Croker.[17] Ken Ayres, Kevin Martin, Rich Jehue. [18]John Penland, Steve Nicholson. [19] TerryRasmussen, Scott Legros. [20] JohnPasqualetto, Jim Bell. [21] J.D. Hutton, SeanHoran. [22] Fernando Verdugo, GordonMartinez. [23] Stephen Martinez. [24] ScottSchuster. [25] Tom Foote, Joe Allotta.

HOO-HOO GOLF

Photos by The Merchant


C&E LUMBER COMPANY1 1/2” to 12”Diameter in Stock.

SPECIAL QUOTES

OFF TO THE RACES: Los Angeles HardwoodLumberman’s Club enjoyed its annual Day at theRaces April 21 at the Santa Anita Racetrack,Arcadia, Ca. [1] Ed Gallagher, Lynne & NathanOsborne, Yolanda Shewell. [2] Maria & Jerry Lapin.[3] Becky & Tim Peterman. [4] Randy Porter,Charley James, Marty Porter, Walter Ralston, Marie& Alan Oakes. [5] Tony Moyer, Jeremy Moyer,Andrew Nelson. [6] (back) Doreen Reel, ShirleyCadwell, Samantha Cadwell, (front) CharlotteEtheridge, Don Reel. [7] (back) Diane Johnston,Amy Moyer, Vickie Johnston, Tim Mathews, (front)Dennis Johnston, Emily Moyer. [8] (front) BrookBohnhoff, Michael Bonhoff, (back) Jason Jones,Christy Jones. [9] Shelley Nelson, Megan Nelson,Sarah Nelson, Brent Smith.

Photos by Walter RalstonHARDWOODS & HORSES


LUMBER ASSOCIATION of California& Nevada’s 2nd Growth 40-and-undergroup featured [1] speaker KarynBeebe, engineered wood specialist forAPA, addressing the future of EWP at itsMay 3 meeting in Brea, Ca. (Left toright) Karyn Beebe, Terry Rasmussen,Chris Freeman. [2] Dan Sweeny, JanKirkman. [3] Mark Huff, John Pasqua-letto, Troy Huff. [4] Ryan Mitchell,

Shawn Knight, Johnny Pringle. [5] ChrisHuntington, Scott Whitman. [6] AnnaRamierez. [7] Frank Bader, RandyJackson. [8] Fia Faumuina, GerryPerez. [9] Brian Hall, John Mayhew.[10] Grant Pearsall, Joe Allotta. [11]Matt Satterlee, Chris Johnson. [12] JeanHenning, Danny Sosa. [13] Doug Willis,Al Reed.

LACN ON EWP

Photos by The Merchant M

agazine


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ASSOCIATION Update

Lumber Association of Califor-nia & Nevada’s 2nd Growth groupwill mark its 36th anniversary duringits annual summer conference July19-20 at Rancho Las Palmas Resort &Spa, Rancho Mirage, Ca.

The event opens with golf and con-tinues with an opening reception, din-ner, and educational program. Daytwo focuses on “Industry Mentoring:Our Past, Present, and Future.”

Western Wood Preservers Insti-tute will gather for its annual summer

meeting June 24-26 at Ritz-Carlton,Bachelor Gulch, Avon, Co.

Southern Oregon LumbermansAssociation will present its annualgolf tournament and BBQ July 26-27at Rogue Valley Country Club,Medford, Or.

North American WholesaleLumber Association elected MikeMordell, Universal Forest Products,as its new chairman.

Other new officers are 1st vice

chairman Mike Phillips, HamptonLumber Sales, and 2nd vice chairmanRick Eckstein, Weston Forest Pro-ducts. Mark Kasper, Amerhart Ltd.,continues as secretary/treasurer.

NAWLA is partnering withOregon State University, Corvallis,Or., to present a Sept. 10-13 woodbasics course.

Classes are led by instructors fromOSU’s Department of Wood Science& Engineering, College of Forestry.Students will tour Starker ForestLands & Education Center, Philo-math; Zip-o-Log Mills and SenecaSawmill Co., Eugene, and Rosboro,Springfield.

Photos by Walter Ralston LA HARDWOODS

LADIES FIRST: Los Angeles Hard-wood Lumberman’s Club hosted itsannual Ladies Night meeting & dinnerMay 10 at Orange Hill Restaurant,Orange, Ca. [1] Alan & Dayna Arbiso.[2] Gale & Judy Daugherty, CharlotteEtheridge, Don Reel. [3] Charley Fiala,Alana Northrup, Kit Rohn, DanBohannon. [4] Bill Fitzgerald, KelseyFitzgerald, Candice & Paul Pendergast.

[5] Molly Ondich, Steve Ondich, ChristaBohnhoff, Charley Bohnhoff. [6] Nathan& Lynne Osborne, Cathy & BruceJauman. [7] Jim & Tracy Gaither,Joyce & Walter Ralston. In attendancewere two LAHLC scholarship winners—Kelsey Fitzgerald and BrandonOsborne—whose winning essaysanswered “What is your favorite woodproduct?”


IN MemoriamRobert J. “Bob” Mohler, 94, retired co-owner of

Ontario Lumber Co., Ontario, Ca., died May 17 in YuccaValley, Ca.

A decorated Navy fighter pilot during World War II, heretired from the Navy as a full commander in 1978, after27 years of combined active duty and reserve.

He operated Ontario Lumber with his wife, Marjorie,from 1960 to 1988 and spent many years as president ofthe Pacific True Value Hardware Association.

Edward Louis “Eddie” Myers Jr., 66, owner/operatorof Golden West Lumber, Fresno, Ca., and Fresno Lumber,Fresno, died April 15.

Solomon Lowi, 89, founder of Builders Discount,Chatsworth, Ca., died May 1 in Los Angeles, Ca.

He started the business in 1954, which was one of thefirst large-format home centers and grew to three locations.In 1986, he sold the business to Levi Kushnir, Israel’slargest home improvement retailer. It went bankrupt in1992, citing heavy competition from Home Depot andHomeBase.

Wallace “Wally” Hicks, 70, lumber salesman and for-mer owner of Gold Creek Lumber, Jacksonville, Or., diedMay 11 in Medford, Or.

After graduating from the University of California,Berkeley, in 1963, he worked as a lumber sales managerand wholesale lumber distribution salesman at Spalding &Son, Grants Pass, Or., and Weaver Forest Products, WhiteCity, Or., before forming Gold Creek in 1987.

Fred William Huling Jr., 90, co-founder and retiredpresident of Laminated Wood Products, Ontario, Or., diedApril 18 in Hermiston, Or.

During World War II, he served as a U.S. Army AirCorps fighter pilot in Asia.

Harold Arthur Friese, 90, retired seed manager forWeyerhaeuser Co., Tacoma, Wa., died May 9 in GrandForks, N.D.

After serving with the National Guard in Guadalcanalduring World War II, he graduated from Oregon StateUniversity’s College of Forestry in 1949 and joined theU.S. Forest Service. He was hired by Weyerhaeuser in1951, starting at its logging camp in Sutherlin, Or., and

becoming a district forester at Cottage Grove, Or. Movingto Tacoma, he served as seed manager for the U.S., design-ing and building equipment and plants in Arkansas, NorthCarolina, and Washington. He worked with the NorthwestTree Seed Council to develop a Seed Zone Map forWashington and Oregon, and in 1973 patented his ownseed-cleaning machine.

A member of the Puget Sound Society of AmericanForesters, he served four terms as president of theNorthwest Seed Certification Association, one term asdirector of the Weyerhaeuser Credit Union, and as thecompany’s advisor to the Junior Achievement Association.

Emiline Marie Pivik, 84, former co-owner and book-keeper of Teton Lumber, Wilson, Wy., died May 13 inIdaho Falls, Id., following a lengthy illness.

She operated the sawmill with her husband, JosephPivik, and her brother-in-law, Carl Pivik, for 49 years, untilthey retired in 1990.

Albert William “Pete” Harper, 85, retired Spokane,Wa., district representative for the Douglas Fir PlywoodAssociation (forerunner of APA), died May 11.

A Navy veteran of World War II and the Korean War,he also served as president of the local Hoo-Hoo chapter.

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DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

Forest Products Society – June 9-11, international convention,Omni Shoreham Hotel, Washington, D.C.; (608) 231-1361;www.forestprod.org.

American Architectural Manufacturers Assn. – June 10-13, sum-mer meeting, Marriot Oak Brook Hills, Oak Brook, Il.; (847) 303-5664; www.aamanet.org.

National Lawn & Garden Show –June 11-13, Embassy Suites,Frisco, Tx.; (888) 316-0226; www.nlgshow.com.

Los Angeles Hardwood Lumberman’s Club – June 14, electionnight, Moreno’s Mexican Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

National Retail Federation – June 20-22, loss prevention confer-ence & expo, Ernest N. Morial Convention Center, New Orleans,La.; (800) 673-4692; www.nrf.com.

Pacific Lumber Inspection Bureau – June 22, annual meeting,Coeur d’Alene, Id.; (253) 835-3344; www.plib.org.

Western Hardwood Association – June 22-23, annual meeting,Sunriver, Or.; (360) 835-1600; www.westernhardwood.org.

Western Wood Preservers Institute – June 24-26, summer retreat,Ritz-Carlton, Bachelor Gulch, Avon, Co.; (800) 729-9663;www.wwpinstitute.com.

Western States Roofing Contractors Association – June 24-27,convention & expo, Paris-Las Vegas Hotel & Casino, Las Vegas,Nv.; (800) 725-0333; www.wsrca.com.

PCBC – June 27-29, Moscone Center, San Francisco, Ca.; (800)956-7469; www.pcbc.com.

Mountain States Lumber & Building Material Dealers Associ-ation – July 17, WOOD Council golf tournament, Ranch Golf &Country Club, Westminster, Co.; (800) 365-0919;www.mslbmda.org.

Lumber Association of California & Nevada – July 19-20, 2ndGrowth summer conference, Palm Desert, Ca.; (800) 266-4344;www.lumberassociation.org.

Southern Oregon Lumbermans Association – July 26-27, 50thanniversary golf tournament & BBQ, Rogue Valley Country Club,Medford, Or.; (800) 633-5554.

Umpqua Valley Lumber Association – Aug. 2-3, Mill Week,Roseburg, Or.; [email protected].

Southern California Hoo-Hoo Club – Aug. 15, dinner & meeting,Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842;www.hoohoo117.org.

Western Wood Products Association – Aug. 15-16, summermeeting, Portland, Or.; (503) 224-3930; www.wwpa.org.

Ace Hardware Corp. – Aug. 16-18, fall market, McCormick PlaceSouth, Chicago, Il.; (630) 990-7662; www.acehardware.com.

Orgill Inc. – Aug. 16-18, dealer market, Las Vegas ConventionCenter, Las Vegas, Nv.; (800) 347-2860; www.orgill.com.

Remodeling & Decorating Show – Aug. 18-19, Orange CountyFair & Event Center, Costa Mesa, Ca.; (818) 557-2950;www.thehomeshow.com.

International Woodworking Fair – Aug. 22-25, Georgia WorldCongress Center, Atlanta, Ga.; (404) 693-8333; iwfatlanta.com.

Mountain States Lumber & Building Material Dealers Associ-ation – Aug. 24, Western Slope golf tournament, Rifle CreekGolf Course, Rifle, Co.; (800) 365-0919; www.mslbmda.org.

Remodeling & Decorating Show – Aug. 24-26, South Town ExpoCenter, Sandy, Ut.; (818) 571-9012; www.thehomeshow.com.

National Assn. of Women in Construction – Aug. 29-Sept. 1,annual convention, Denver, Co.; (800) 552-3506; www.nawic.org.

Dimension LumberTreated ProductsDomestic

TimbersGreen & K.D.

Export

Manke Lumber Company is family-owned and has been serving the needsof the lumber industry since 1953. Wetake pride in milling and stocking quali-ty lumber in a full range of commoditysizes and larger dimension timbers. Wealso answer your market needs for awide variety of treated lumber products. Our forest products are milled fromcarefully harvested Northwest treesready for distribution to you—on timeand at the right price.Located in the Port of Tacoma, wehave ready access to deep water ship-ping, rail heads or trucking terminals forlonger haul loads. Manke operates itsown fleet of trucks and is at your ser-vice for straight or mixed loads bytruck, rail or sea.We manufacture primarily Douglas firand western hemlock, including• 2x4 thru 2x12, Lengths 8-20’• 3x4 thru 3x12, Lengths 8-26’• 4x4 and wider, Lengths 8-26’• 6x6 and wider, Lengths 8-26’• 8x8 and wider, Lengths 8-26’• Timber sizes up to 12x12

Manke Lumber CompanyCall 1-800-426-8488

1717 Marine View Dr., Tacoma, WA 98422Phone 253- 572-6252 Fax 253-383-2489

www.mankelumber.com

WHAT YOU WANT.WHEN YOU NEED IT.


ADVERTISERS IndexFor more information on advertisers, call them

directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........15

Ainsworth [www.ainsworth.ca] ................................................30-31

Allweather Wood Treaters [www.allweatherwood.com] .............19

Atlantis Rail Systems [atlantisrail.com] .......................................34

Austin Hardwoods & Hardware.....................................................50

BW Creative Wood [www.bwcreativewood.com] ........................26

Cabot [www.cabotfactoryfinish.com] .............................................5

Cal Coast Wholesale Lumber ........................................................43

California Timberline [www.caltimberline.com] ............................7

C&E Lumber Co. [www.lodgepolepine.com] ...............................40

Capital [www.capital-lumber.com]..........................................13, 15

Cedar Shake & Shingle Bureau [www.cedarbureau.com]..........8A

Collins Companies [www.collinswood.com] .................................3

Fontana Wholesale Lumber [fontanawholesalelumber.com].....42

Huff Lumber Co. .............................................................................29

Humboldt Redwood Co. [www.getredwood.com] .......................19

Idaho Forest Group [www.idahoforestgroup.com] ............Cover II

J.M. Thomas Forest Products [www.thomasforest.com] ...........41

Keller Lumber Co............................................................................22

LP Building Products [www.lpcorp.com].......................................8

Manke Lumber Co. [www.mankelumber.com].............................45

McFarland Cascade [www.mcfarlandcascade.com] ...................35

Norman Distribution Inc. [www.normandist.com].......................37

Olympic PPG [www.Olympic.com] ...............................................25

Plycem USA [www.plycemtrim.com]..................................Cover III

Redwood Empire [www.redwoodemp.com].................................23

Reel Lumber Service [www.reellumber.com] ..............................33

Regal Custom Millwork ..................................................................33

Roseburg Forest Products [www.rfpco.com] ..............................27

Royal Pacific Industries .................................................................28

Simpson Strong-Tie [www.strongtie.com] ........................Cover IV

Swaner Hardwood Co. [www.swanerhardwood.com].................34

Swanson Group Sales Co. [www.swansongroupinc.com].........21

Taiga Building Products Inc. .........................................................24

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ......4

TruWood-Collins [www.truwoodsiding.com] ............................16A

Western Woods Inc. [www.westernwoodsinc.com]............Cover I

The owner of a Florida lumberyard hasdecided that pennies just aren’t worth the trouble anymore. “No more pennies! For cash sales, we round in your

favor,” proclaims a new sign at Shell Lumber, Miami,Fl. Owner Andy Haase instituted the change last month,after tiring of the need to account for the 1,200 penniesneeded each day for the store’s 10 registers. “The bookkeepers used to come down and say your

cash drawer was off by a penny,’’ said Haase. “It wasjust a lot of work for nothing.”The U.S. Mint, which spent $119 million last year to

make $49 million worth of pennies, agrees. So does JeffGore, a biophysics professor at the MassachusettsInstitute of Technology who advocates retiring thepenny. “The penny used to be a useful coin,’’ he says.“There was a time when you could buy something withit.” But those times are past.Customers using credit cards still pay the full

amount, but cash transactions are rounded up to 4¢, sono pennies change hands. During a recent visit to ShellLumber, customer Frank Dumenigo handed over $21for $20.84 worth of merchandise and received twodimes in return. “I have a change purse,’’ said Dumenigo, who rou-

tinely leaves pennies behind on sales counters. “If I putpennies in there, it would explode.”The Pentagon also has little use for the copper coin.

In 1980, it stopped sending pennies to overseas militarybases because the coins “are too heavy and are not costeffective to ship,’’ says Christopher Ward, a spokesmanfor the Army & Air Force Exchange Service. Militarycommissaries round sales totals to the nearest dime ornickel, figuring that customers will wind up even overtime. Haase says the new policy could cost the store as

much as $10 day—almost $5,500 a year—but will savelabor costs for tracking sales down to the last penny.“We worked out the math,’’ he says. “Counting pennieswas definitely worse than break even.”

SIGNAGE promotes lumber dealer’s new No Penny policy.

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the merchant magazine - june 2012

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