January 2015 edition of The Merchant Magazine, monthly trade magazine for lumber dealers & distributors in the West
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Performance Driven In the fastener marketplace, Simpson Strong-Tie stands apart from the rest. Quality, reliability and service are our top priorities. Our complete line of Strong-Drive ® structural fasteners, Deck-Drive ™ premium fasteners and Quik Drive ® auto-feed screw driving systems are designed to tackle any project and exceed your customers’ expectations. Learn more, call (800) 999-5099 or visit strongtie.com/fasteners. TRENDS IN TRIM & SIDING WINDOWS & DOORS WESTERN WOODS J A N U A R Y 2 0 1 5 The MERCHANT Magazine THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
Transcript
Performance Driven
In the fastener marketplace, Simpson Strong-Tie stands apart from the rest. Quality,
reliability and service are our top priorities. Our complete line of Strong-Drive® structural
fasteners, Deck-Drive™ premium fasteners and Quik Drive® auto-feed screw driving
systems are designed to tackle any project and exceed your customers’ expectations.
Learn more, call (800) 999-5099 or visit strongtie.com/fasteners.
TRENDS IN TRIM & SIDING WINDOWS & DOORS WESTERN WOODSJANUARY 2015
The MERCHANT MagazineTHE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
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CHANGE OF ADDRESS Send address label from recentissue, new address, and 9-digit zip to address below. POSTMASTER Send address changes to The MerchantMagazine, 151 Kalmus Dr., Ste. D-200, Costa Mesa,Ca. 92626.The Merchant Magazine (ISSN 7399723) (USPS 796-560) is published monthly at 151 Kalmus Dr., Ste. D-200, Costa Mesa, Ca. 92626 by Cutler Publishing, Inc.Periodicals Postage paid at Newport Beach, Ca., andadditional post offices. It is an independently-owned pub-lication for the retail, wholesale and distribution levels ofthe lumber and building products markets in 13 westernstates. Copyright®2015 by Cutler Publishing, Inc. Coverand entire contents are fully protected and must not bereproduced in any manner without written permission. AllRights Reserved. It reserves the right to accept or rejectany editorial or advertising matter, and assumes no liabili-ty for materials furnished to it.
The MERCHANT Magazine
6 The Merchant Magazine January 2015 Building-Products.com
With a heavy heart, time to say goodbyeFIRST, A HAPPY NEW YEAR. I hope you enjoyed a great holiday
and time off with your family. As I indicated in my last col-umn, we have changes afoot here at our publications.
Fourteen years ago, I became the owner and publisher of TheMerchant Magazine and Building Products Digest. I inherited twomagazines with a tremendous history supporting this industryback to 1922. David Cutler handed over the reins to me in 2001,and I will be handing them over to our new owner and publisher,Patrick Adams, in the next month as I head for retirement.
At that time in 2001, I simply had no clue as to the adventure Iwas about to embark on leading to the best fourteen years of mylong career and it was so unsuspected. As I hit 66 just a fewweeks back, as one of my recent columns suggested, you need tofind the right time to walk away. I have sadly come to the conclu-sion that time is now. I have been a president/c.e.o. since I was 24,managing companies in the U.S., Canada, U.K., France, Spain,Netherlands, Germany, Sweden, UAE, moving continents severaltimes. It is time to take a breather.
I would like to take a brief opportunity to thank two peoplewho early in my career had great faith in me. Reinhold Wuerth(Wuerth KG) and Rodnay Zaks (Sybex) who both hired me at anearly age and were responsible for bringing me to the U.S. tomanage their companies. In both companies, I learned that I hadto work and run hard and anybody who has seen me in this indus-try knows that to this day I lead my life the same way. I believe indoing nothing without a 100% passion, energy and commitmentand running a company with the highest level of ethics andintegrity. I have believed in people and have resisted strongly thehire and fire mentality in the corporate world today.
In 2001, I bought a P&L and a piece of paper. I had not count-ed on finding a home that was a perfect fit for me and my skills.More importantly, I joined an industry with simply the best peopleI have ever come across in a variety of industries. The friends Ihave made will I hope be enduring during my retirement. I cannotthank enough the many, many people I have met who have givenme hope, commitment and outright friendship. It is only when youhave worked in other industries do you realize the value of thisone.
So this will be my last column. In 2001, the thought of writinga monthly column was daunting. I had never written before, so Isimply shared my thoughts and ideas, which, from your amazingfeedback, appears to have hit a chord. I never saw myself as right,I just wanted readers to be intrigued with what I wrote enough tolook at themselves or their companies to see if they could do bet-ter. Many of my columns have been as an industry cheerleaderthrough a time when, as owners, managers and employees, wewere tested to our limits. Of course, today is the perfect time forme to go out, now that the industry has begun to grow again.
I would like to thank a number of people. First, I would like tothank all the wonderful ladies in this industry (there are notenough by the way) who were gracious to have their photos takenwith me which has given me such joy and many of my readerstoo, who have thought I might be enjoying my job too much.
I would like to thank many of the young people of this indus-
try. They have proved to me that they still do want to read a mag-azine, despite what you may all hear. Their questions and feed-back have been extremely encouraging for the future of this indus-try. However, this industry is not attracting enough of them,which needs to be overcome.
I would like to thank the many who have given feedbackthrough the years and who have supported our publicationsthrough thick and thin. Our advertisers are the most loyal I couldever imagine. And the thousands of comments on how our readersenjoy what we do is what keeps us going.
I would like to thank in particular three of my colleagues whowere here in 2001, David Koenig, Chuck Casey, and HeatherKelly. All have supported me through these years, and I will missthem deeply. All will continue with the new owner.
Lastly, I would like to thank my long-suffering wife of 45years, Pierrette, who has supported my career at every turn andbeen my partner in this business. As a wife and mother, she is sec-ond to none. She has had about 15 career moves to deal withdomestically and internationally and should take much of thecredit for raising our two wonderful and successful children.
And now to the future. When I made the decision to retire andsell our company, it was critical to me that I found a company thatwould continue to expand and grow our magazines. Our historyback to 1922 was paramount to me in finding a buyer who wouldbelieve in the way we do things at this company—very unlike tra-ditional publishing houses—and who would lead us on to biggerand better things for a long time to come.
After a few months of talking to a number of companies andmostly remembering the reasons I left corporate life, I came to theconclusion that I needed to find someone like me 15 years ago,who wanted their own show and was disillusioned with corporatelife. I am so excited that in Patrick Adams I believe we havefound that person. He will tell you more about himself nextmonth, but he joins us with 25 years of executive magazine andpublishing experience and will bring new ideas to meet the future.Patrick is just getting to grips with our industry and has alreadyfound out at a number of events that he is part of an incrediblecommunity of professionals, who do business the old-fashionedway, “on a handshake,” who are loyal to the core, love what theydo, and have a deep commitment to this industry.
My exit will continue for a few months and still more shows todo, but as I again wrote a few months back in a column—Hey, Iam not dead yet—I have plenty to do. My passion is travel, but Iwill consult for companies and individualsand I hope to find ways to continue tosupport this industry. My email addresswill stay the same, so please keep incontact.
Dear readers and friends, thank youfor what you have given me. I enterretirement happy that I have had the best14 years of my life, but leavewith a very heavy heart. Thankyou. Wishing you great salesand success and hoping youwill have as much joy inyour life as I have had.Readers Respond
Have a thought or story to share about Alan or our publi-cations as he heads into retirement? Please send a brief emailto [email protected] by Jan. 20 to be included inour February issue!
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Building-Products.com January 2015 The Merchant Magazine 9
4 ways tech canenhance yourLBM business
nate e-newsletters or e-blasts, butthose who opt-in are typically quali-fied leads looking to learn more, sothe payoff potential is large. Tools likeMailChimp, AWeber, and ConstantContact can help you get startedquickly and easily.
• Social channels like Facebookand Twitter offer the opportunity toengage with customers and fellowindustry members, strategically dri-ving traffic to specific landing pages,news, and other interesting informa-tion. Simply remember the 80/20 rule:80% of content should be about yourcustomers, partners and industry; 20%should be focused on how your busi-ness can help them.
• Online reviews can make or break
the intangible, pinnacle of marketing:customer-generated word-of-mouth.Engaging with reviewers on sites likeAngie’s List, Google Places, Home-Advisor or Yelp is an excellent way tobuild customer loyalty.
3. Customer service and satisfac-tion. We live in a society that cravesinstant gratification. Web and mobilesolutions enable your business to pro-vide that for its customers.
Why this matters for your business:• A business’ website serves as a
24/7 sales professional. Differentiateyour customers’ experience by provid-ing a unique, easy-to-navigate webpresence. Consider the most frequent-ly asked questions about your ser-vices, products, team, location, experi-ence, etc., and get them answered onyour website.
• Perhaps your customers don’twant to wait to schedule an in-personmeeting. Tools such as Skype, GoogleHangouts, and GoToMeeting offerreliable solutions for holding clientmeetings virtually, allowing you theopportunity to satisfy customers faster.
• Cloud-based project managementtools like Asana, Basecamp and Zohofoster collaboration among your teamso that the customer is delivered thebest service possible.
4. Sell with technology. Yoursales team is a finite resource. Yourwebsite and e-marketing will back youup to a certain point, but empoweringyour sales team with technology willfurther extend their ability to meetwith clients and make the sale.
Why this matters for your business:• Create estimates and quotes on
the go with mobile estimating soft-ware. Apps like JobFlex allow yoursales team the flexibility to deliverquotes in the field, equipped with allthe resources they need to generate aprofessional, branded estimate, with orwithout internet.
• Don’t wait for the drive back tothe office to deliver. Set up bluetooth-enabled devices to print wirelesslyfrom the field to back up digital deliv-ery with printed copies.
Where is your business lacking inresources? Which processes just aren’tflowing efficiently? Consider theproblem, and there’s a technologysolution. From online business train-ing to cloud-based system apps, tech-nology is at the crux of everything.
– Mac McCabe is v.p. of sales atJobFlex. Reach him at (855) 354-3539 orvia www.job-flex.com.
LBM BUSINESS and managers areconstantly faced with evolving
technology that promises to help theircompanies operate more effectively. Itcan leave one feeling inundated, over-whelmed or ready to give up on tech-nology altogether. For anyone whowonders if additional technology isreally necessary to run a lumberyardor home center, the answer is yes.
Here are ways tech can improve theefficiency of your business:
1. Data storage and security.Cloud storage solutions like Dropboxand Google Drive offer affordabledata storage options for keeping andsharing documents online.
Why this matters for a business:• Cloud storage frees up space on
internal hard drives and networks.• Companies like Dropbox and
Google have extensive IT resources inplace to ensure data security, lesseningthe load on internal IT staff or vendorsand decreasing vulnerabilities.
• Cloud storage facilitates collabo-ration—among co-workers, partners,vendors and contractors. No moresending different versions throughemail; live edit and share. File too bigfor email? Upload it to Dropbox.
2. Email and Internet marketing.Businesses need to spend time &resources on e-blasts and social mediato cultivate a community and increaseengagement.
Why this matters for your business:• According to Convince &
Convert, in the past year, 44% of peo-ple surveyed made at least one pur-chase based on a promotional email. Ittakes time to craft the right headline,determine the right content that will beuseful to your audience, and coordi-
FEATURE StoryBy Mac McCabe, JobFlex
APPS like JobFlex arm your sales force with allthe tools they need in the field.
10 The Merchant Magazine January 2015 Building-Products.com
If your price is too high,your story is too short3 steps to boost profitability byselling value-added building products
“WHAT’S YOUR PRICE?” That question is always partof the equation. But it doesn’t have to be the
equation. You already know the answer can never be lowenough. So, if you’re tired of constantly sharpening yourpencil, maybe it’s time to point your sales team towardvalue-added specialty products.
MARGIN BuildersBy Rick Kapres, Versatex Building Products
Yes, price is a driver. After all, you’re in the lumberbusiness. But it’s okay to slow down and present the priceof a value-added product after you convince the end user ofthe product’s actual worth. Remember the old saying, “Ifyour price is too high, your story is too short?” To movetop-end products, you’ve got to tell a story that explainstheir value.
But, before your sales team can tell that story, you needto convince them that making the effort is in their bestinterest. Too often, sales reps spend their days simply hand-ing over what builders ask for without stopping to wonder,“Is this the right product for the builder to use? Is this theright product for us to sell?”
The good news is that you can change that reactivemindset. Here’s a simple, three-step process that I’ve seenwork for dozens of retailers:
(1) Commit to one product.(2) Create an incentive-rich selling environment. (3) Craft your story and tell it.
Show Them You’re SeriousBegin by committing to a specific product. Stock it start-
ing now, because if it’s not in the yard, your sales teamwon’t see it as important, and it won’t move. Obviously,inventory dollars aren’t to be taken lightly. Dead inventorycan kill you, and turns are paramount. But, while grossmargin return on investment (GMROI) is critical, it has an“earn” side as well as a “turn” side. Disregarding earns—margin dollars—will doom you just as quickly as ignoringturns.
It’s like the guy who bought watermelons for two dollarseach and sold them for a buck. He knew he was goingbroke, but his solution—“Get a bigger truck”—didn’t payoff.
Because margin matters, you’ll want to invest in inven-tory that can produce margin dollars. Do your homework:Understand which value-added features each manufacturerbrings to the table, in every category you sell—siding, trim,decking, railings, windows or roofing.
SELLING value-added building products, such as Versawrap one-piecePVC cladding system for pressure treated columns, works best through athree-step process.
Building-Products.com January 2015 The Merchant Magazine 11
You already know that every cate-gory has premium players who ask formore money but deliver more value.Narrow the field to manufacturers whooffer:
• Superior warranties• Innovative, time-saving products
that solve real problems• Higher quality• Sales and marketing people who
will help you tell the value story.
Sweeten the PotOnce you’ve identified a manufac-
turer and a value-added product, andhave it in stock, your next move is tocreate incentives for selling it. Payalways gets people’s attention, so tryadjusting commissions to make sellingthe product more attractive. Evenwhen compensation is based on grossmargin dollars, extra pay for conver-sions to a new product can counteracta risk-averse “bird in the hand” men-tality.
For instance, a rep who’s used toselling spruce trimboards to a certainbuilder might not want to risk tinker-ing with the relationship, even thoughthe commission would be higher ontrim made of PVC. In this case, yourjob is to make the conversions worth-while for both the rep and the builder.Fortunately, most top-of-categorymanufacturers are ready to collaboratewith you on rewards for reps or incen-tives for builders.
Spin the TaleOkay, you’ve selected and stocked
the right product, and set up incentivesfor your people and their customers.Your third and final step is to craftyour story and tell it. You want yourcustomers to believe and remember asuccess story: how your producthelped people like them gain prof-itability by solving a specific problemfor them and their customers.
Here again, the manufacturer isyour ally. Lean on their sales and mar-keting expertise, but don’t stop there.Ask your own sales and marketingpeople to develop local angles.Building products are regional, soconcentrate on issues that buildersface in your part of the country.Support your story with testimonialsand photos of local projects, posted onyour website, in social media and onin-store displays.
Get customers to listen by stagingevents they’ll want to attend. Becausebuilders love to buy from otherbuilders, some manufacturers sponsor
live, news-you-can-use programs, pre-sented by experienced contractors.These sessions can support your storyby:
• Helping you introduce a higher-margin, value-added product tobuilders
• Showing builders how to per-suade homeowners that the product isdesirable and that price is secondary.
Builders typically exit these get-togethers motivated to use higher-bud-get products, because they’ve gainedconfidence in their ability to suggestthem to homeowners.
To help your team understand theproduct story and repeat it consistent-ly, have them attend any training themanufacturer offers. Make sure eachteam member gets copies of presenta-tions and absorbs key selling points.And ask your top outside salespeopleto travel with manufacturer reps tomake joint calls on builders.
After hearing the story a few times,your people will be able to recite thekey features with confidence andmake the conversions you need. Theselling process will evolve away fromprice and converge on performanceand value. And your bottom line willreflect the change. You’ll also have agrowing collection of builders who arethankful that you helped them see thelight and are, ultimately, more loyalbecause you did.
– Rick Kapres is vice president-salesfor Versatex Building Products, LLC,Pittsburgh, Pa. He can be reached viaversatex.com.
RICK KAPRES – VERSATEX
12 The Merchant Magazine January 2015 Building-Products.com
Exterior trimpackages looking up
Functional venting louvers feature corrosion-resistantscreens to help keep insects out of the home and angledslates to protect interiors from rain while still encouragingventilation.
“The windows on the front of a home gain tremendouscurb appeal when accented by mouldings, a crosshead,trim and a window panel,” she says. “Similar pieces—pluspilasters and pediments—can transform a ho-hum entry-way into a stunning grand entrance for a home.”
To add the ultimate finishing touch to eaves and win-dow areas on the exterior, Piety recommends incorporatingbrackets, dentil blocks, and corbels. These pieces can bepositioned under showcase window areas and on porches,and are also typically found under the roofline of a home.A trellis system installed above the garage door or a sec-ondary entryway of the home carries through the decora-tive elements on the exterior.
“One of the best uses of low-maintenance products I’veseen comes when people are adding balustrade systems,column wraps, and columns to a home exterior,” saysPiety. “These are products that in the past were made onlyof wood, requiring endless hours of scraping and refinish-ing on a regular basis. Now, with an abundance of PVCand urethane options in these product categories, home-owners can almost forget about maintenance woes. Anoccasional washing is all that’s needed to keep these prod-ucts looking fresh and new year after year.”
Top Down Colors for the HomeSince they often come with a pre-primed surface ready
to stain or paint, the lightweight products are an ideal wayto add “top down” color to the home exterior.
“Painted crossheads or pediments that sit above win-dows or doors can help draw the entire color palettetogether for a home while providing instant curb appeal,”says color expert Kate Smith. “While white trim is alwaysstriking on a home and can be a great contrast to darkercolors, you can paint mouldings, brackets, trellis systemsor louvers in a wide array of colors to truly highlight yourhome exterior. For example, a home with an overall greenpalette could use cream- or driftwood-colored accentpieces. Or, a Victorian-style home could use mouldings inshades of fuchsia or purples to set off its trim.
TRIMMING OUT a house “from the top down” with low-maintenance urethane products—from gable vents and
louvers down to millwork and balustrades—is a growingtrend for busy homeowners looking for easy-care homeexteriors.
“Today’s homeowners are selecting products for theoutside of the home that are long-lasting and require mini-mal upkeep,” says Fypon’s Anita Piety. “Urethane andPVC products perfectly match the needs of consumers whoare looking for stylish home enhancements that resistmoisture, insects, cracking, peeling, rotting and warping.
PRODUCT SpotlightExterior Trim
PVC BRACKETS provide a great accent to siding and other decorativetrim features.
“These products come with several finish options,including smooth, timber and stone cast, all primed andready to paint or stain. The options encourage people topersonalize their home exteriors with products that com-plement their home’s design while reaping all the benefitsof durable, low maintenance materials.”
Top Down Accessories for the HomeAt the roofline of the home, Piety recommends gable
vents and louvers that come in shapes (such as octagons,cathedral, triangle and oval) and sizes to fit most openings.
Well managed forests and beautiful wood. When you choose Collins, there’s no either/or. For
more than 150 years, we’ve been providing builders with the highest quality White Fir, Sugar
Pine, Ponderosa Pine, Incense Cedar and Doug Fir, all the while working to maintain the very
Sierra Nevada forests from which they come.
Our products are certified by the Forest Stewardship Council ®, that means the wood you’re
purchasing comes from woodlands that are managed in an environmentally and socially
responsible manner. It doesn’t just benefit builders; it benefits our entire ecosystem.
Feel good about it
Custom Home –Nathan Good Architects
14 The Merchant Magazine January 2015 Building-Products.com
New Energy Star rulesimpact door/window sellers
to promote the proper use of theEnergy Star brand. A lot of manufac-turers who aren’t Energy Star partnersadvertise that their products ‘meet allthe requirements of Energy StarQualified,’ to imply they are partners.”
The word “certified” provides farless interpretation than “qualified.”Jervis says, “Probably a third of allfabricators in the U.S. making vinylwindows for retrofit are Energy Starparticipants. A third say their productsmeet Energy Star, which implies theyhave a label—that they often displayin their ads and literature—but they donot. A third don’t bother at all. Thechange should force the middle groupto be more honest.”
Third—and most pertinent for deal-ers and distributors—detailed installa-tion instructions, covering eight spe-
cific areas, must be provided for allEnergy Star windows, doors and sky-lights, either packaged with the win-dow or readily available for onlineviewing.
The instructions are so detailed thatsupplying them at the point of pur-chase is impractical. Jervis says thestandard industry install document is90 pages long. “I don’t know how youstaple that to every window,” he says.
Confusion may still arise overwhich website to head to—the retail-er’s, the distributor’s, or the manufac-turer’s?—particularly if the retailermarkets products as its own brand.
“To be safe, if the retailer sells win-dows as part of an ‘at home service’and collects the consumer’s money,they may want to put the requisiteinstructions on their website,” Jervisoffers.
He suggests the company responsi-ble is the one that offers the warranty.But, to make it easier for Energy Starpartners to comply, AWDI haslaunched an online library of compli-ant instructions (wixsys.com) to whichmanufacturers and retailers can linkand have assurance from the EPA thatthey are compliant. Energy Star 6.0partners can license the AWDI libraryand gain a QR code that they canplace on their products, putting con-sumers a scan away from the site.
Retailers, fearing they could con-ceivably be held liable for incorrectlyinstalled products, can also benefitfrom the online portal. They can havea QR code affixed to their retail shelf.
“The window won’t work right ifit’s not installed right,” Jervis says.“The goal of the Energy Star mandateis to now have qualified productsinstalled well.”
NEW CHANGES WITH Energy Starmean new concerns for dealers
and distributors of residential win-dows, doors and skylights, particularlythose that offer installation services orreferrals.
Energy Star version 6.0 went intoeffect Jan. 1, 2015, except in theextreme-weather zone of theNortheast, which was given an addi-tional year to comply.
According to John Jervis, manag-ing director of AWDI, LLC(American Window & Door Institute),there are three main changes. First,there’s an increase in performance cri-teria for windows, doors and skylights.
Second, instead of being marked“Energy Star Qualified,” products willnow be labeled “Energy Star Certified.”
The primary reason, says Jervis, “is
INDUSTRY TrendsWindows & Doors
NEW ENERGY STAR rules require companies selling windows and doors to make sure their cus-tomers have access to exacting installation instructions.
16 The Merchant Magazine January 2015 Building-Products.com
Top window and door trends for 2015
remains the focal point. But they alsoseek options—different light-filteringmaterials and color options, for exam-ple—and convenience.
We caught on to this trend anddesigned Marvin’s integrated interiorshades, integrated seamlessly into thedesign of our windows and doors, sothey don’t protrude into living spacesor interfere with hardware, and theycan be matched to our interior finish-es. Homeowners can program theautomated exterior shading system toprovide the optimal amount of light,24 hours a day.
Accessories that make astatement
Seemingly small details can ele-vate a home from charming to breath-taking. Homeowners continue tovalue a wide array of options, includ-ing numerous color choices for win-dow and door hardware and otheraccessories. More homeowners willmake their statement by choosingcopper and gold accessories.
Passive homes With an increasing emphasis on
energy efficiency, homeowners aregravitating toward “passive” buildingpractices, whose requirements aredesigned to maintain temperatureswith incredibly minimal heating andcooling systems. Using highly effi-cient windows can play a key role inattaining the rigorous passive stan-dards.
Along with these strategic designelements, many trends will pave theway to future innovations, meetingthe needs of people at all stages intheir lives.
– Christine Marvin is marketing direc-tor for Marvin Windows & Doors. Reachher via www.marvin.com/contact-us.
SIGNIFICANT TRENDS are emerging inthe window and door industries—
and the savvy dealers who take noticenow can get a leg up on the competi-tion. At Marvin, we’re constantlymonitoring our customers’ evolvingtastes and have identified the follow-ing key trends that we expect willaffect the building industry in 2015.
Bringing the outside in More people are seeking ways to
integrate their open interiors with spa-cious exteriors and with this trendcomes growing demand for largerwindows and doors. When it comes towindows, many are opting for largecasement windows or direct-glazeoptions, offering unobstructed views.Others are seeking large sliding win-dows that feature unobstructed open-ings and wide open spaces.
Beyond expansive views, home-owners also desire a seamless transi-tion between the homes’ inside andoutside, making a dramatic connec-tion with the outdoors.
Contemporary design elements
Homeowners’ gravitation towardlarger windows and doors with cleansight lines is one of many indicationsof growing interest in contemporarydesigns. You can expect a demand insuch contemporary design elements aspearlescent exterior finishes, includ-ing copper and silver colors, satinnickel hardware, dark interior stains,and beautiful ebony exteriors.
Another way to deliver a contem-porary look is to install windows with“square sticking,” which include aclean, squared-off transition wherethe window’s glass meets wood, cre-ating the minimal detailing emblemat-ic of contemporary design.
New window treatmentsMeanwhile, more homeowners are
leaning toward window treatmentsthat match and integrate with theirwindows, rather than covering themup. They want simple, and sleeksolutions that ensure the window
INDUSTRY TrendsBy Christine Marvin, Marvin Windows
EXPANSIVE VIEWS are becoming more desireable within the home, thus making open-spaced win-dows and doors more of a demand. (Photo courtesy Marvin Windows and Doors)
18 The Merchant Magazine January 2015 Building-Products.com
way back—to 1904, or even earlier, ifyou count the coal and ice companyfrom which it sprang. “Sawdust andlumber go together,” explains currentc.e.o. Eli Bliffert, “so my great-grand-father was smart enough to expand.”
Actually, those early 1900s wereless than stellar for the outfit. But thenthe founder’s daughter married J.P.Bliffert, the fellow who added lumberto the mix and grew the companyfrom one location in 1929 to six by1955. When J.P. died, the six yardssplit into stand-alones, each operatedby a different family member.
Fast forward to 2004, for if thatyear hadn’t spawned a brawny new
vision, you could turn the page rightnow; there wouldn’t be a story. Theyear 2004 was when young (then 35)Eli Bliffert—clearly a chip off hisgreat-grandfather’s entrepreneurialblock—had the smarts, and guts, tomerge the six discrete, outlying sitesback into one far-sounder corporation.“It made more sense to operate themtogether than apart,” he explains.“The others [family members] weregetting up in years, so it took some-one younger, who wanted to pull thecompany back together.”
He was. And he did. And sincethen, added a seventh site. Before thatunification venture, he’d run two ofthose six yards with 20 employees.After, seven stores with staff number-
BUSY WAUKESHA location was acquired in 2009, during the height of Bliffert’s aggressive down-turn-timed expansion.
ing 150. “In 2007, I built an officeand hardware store on the original siteand in 2009 bought the yard inWaukesha. In 2011, I merged the lastof the family yards, and in 2013, Ibought another existing yard an hoursouth of town in Racine County. I justdid stuff that made sense. I expandedhard during the downturn, and thatadded size let me leverage better buy-ing terms with vendors.” It alsoopened avenues to add new products,like salt and ice melt.
Huh? Hold that snicker. “Salt hadnot been sold in lumberyards,” henotes, “but it became a really strongcategory; we undersell the boxes by agood chunk of change,” yet still main-tain cozy margins here in the snowbelt muscling onto Lake Michigan.
There’s strength in numbers, sure,but also strength in diversity. Nocookie cutters in the mix: “All mystores have different strengths anddifferent demographics, so we handlea huge breadth of products, and wecan move those products around[from store to store] to suit our cus-tomers.” Those customers are 70%pro, with a healthy sprinkling of do-it-yourselfers and commercial accountsas well. In fact, says Eli, “we do a lotof commercial—stuff the boxes don’twant to play with, like concrete-form-ing products and fire-treated, flame-resistant products. They’re strong cat-egories, and we do some of the largestbusiness in the state.”
Bliffert also serves those contrac-tors building a house or two a yearplus the larger builders developingtracts. “And our remodeling businessis huge,” he discloses. “One niche isour moulding profiles in hardwoods.
Building-Products.com January 2015 The Merchant Magazine 19
pros, Bliffert schedules breakfast seminars “so the smallerguy can earn the CEU credits they need to keep theirlicenses current” and to introduce new products.
Sure, the boxes are nipping at his heels, as they areeverywhere, “but we try to do things differently than theycan; they all look the same. It’s to our advantage not to bea national chain, so folks can actually talk to the decision-maker; they can always talk to me, and we’ll be able to dosomething creative to secure their business. There’s noother layer of management you have to go through.”
Look at the website’s map of locations, pinpointedevenly across the wider metro, and you think, “Smart!” ButEli only laughs. “Not! It’s just the way my great-grandfa-ther built them.” But Eli, in turns, builds on that given:“Each has its own customer base, and that’s really ourstrength.”
That, and the courage (or whatever you choose to call
it) to expand during the devastating downturn. “It was amiserable time,” he concedes.” We had to shrink employ-ees, shrink vehicles, watch every single penny. But I hungin because there are no shareholders to answer to, just me.The long-term goal was to keep on selling and not give up,and I never lost sight of things—so you’ve got to have thecourage to expand in a downturn. I bought one ongoingbusiness and then another, in Racine County, that had beenclosed five years. (And the community really embracedus.)
“The good times of 2004-’05 may never come back,and we’re still very vigilant with accounts receivable andmargins,” Eli declares. “But we got smarter during thedownturn: You make do with less, tighten your belt, andalso, know how to expand. Today, business has more thandoubled what it was five years ago.”
And market share has skyrocketed. “It’s doing verywell. But today,” he concedes, “it’s a smaller market thanit was ten years ago. We grew, but as we grew, we also lostcompetition, which left us as the largest lumberyard (if notthe only one) in Milwaukee. As others went out of busi-ness, we picked up their best people, their best customers,and their equipment.”
Not bad for a fellow who might be titled The AccidentalEntrepreneur. “I never grew up intending to join the familybusiness. I got into it by accident. I was going to gradschool in Milwaukee and needed a summer job. UncleFred hired me in 1993—and I never left.”
Why? “Owning your own business is very hard, but it’salso very rewarding. And building on the family historyand tradition is something to be proud of. Milwaukee,” hesays, “is bouncing back. By its nature, it never had the highpeaks and the low lows of other cities;we’re behind the rest of the country,never had a jet set, but I’m okaywith that. We’re a family company,and that comes first.”
What comes second? Rememberthe other local item those Germanslove as much as their homes’historic mouldings? Eli does.He laughs, “We give away alot of beer.”
FOURTH-GENERATION c.e.o. Eli Bliffert notes that finely focusedexpansions have been a hallmark of the business since its inceptionover a century ago.
In these older German cities around here, houses were builtover a hundred years ago, and we can still match thattrim.”
To glean new business, Bliffert takes out a few ads,attends trade shows, joins the local builders associations,and makes cold calls (“for sure!”), but mainly relies on thestrength and expertise of his longtime inside and outsidesales force. “We’ve been here so long—long-term familyownership and long-term employees with very littleturnover. We tell them, ‘We want your business not justtoday, but for the long haul.’ As it is, today we’re dealingwith many of the kids of our former customers, who’vestuck with us when their dads retired.” To further aid these
20 The Merchant Magazine January 2015 Building-Products.com
PREJUDICE IS FEAR of the unknown,different or difficult. We do not like
change. We like and are comfortablewith what we know and understand.
“Better the devil you know, than thedevil you don’t know” and “Keep yourfriends close and your enemies closer”are idioms that express our attitudetoward change. We would rather hangout with the devil or our enemies thanrisk a better life!
Check Your PrejudiceYour parents did not like salespeo-
ple. Prejudice is taught at the kitchentable. Your parents may have thoughtsalespeople were pushy, slimy, greedy,lying, fast-talking confidence men. Ifyou were brought up with this mentality,it will make it difficult for you to giveyour all at the moment(s) of truth in thesales process.
You think hard work wins the day. My parents taughtme that hard work would overcome all. Hard work in salesis only the buy-in money. We have to work hard, and becharming and strategic in sales. We have to “work hard” onthe “right things.” If organization is your weakness, workon it. If being charming is your weakness, work on it.
You think fairness matters. The marketplace does notcare about us… unless we care about it. And we will bedoing all of the caring—read, bringing the energy—to themarket and our relationships before we see a payback. Ifyou’re looking for 50/50 relationships, get out of sales! Itwill be 100% our energy and caring when we start and willcontinue to be more of us giving than getting for our entirecareer.
You may have grown up in a family that is preju-diced against hard work and success (usually in thatorder). You may see work as the enemy. You may seeauthority as the enemy—thus working against your bossand your customer, who both are bosses. You may havegrown up with the “Do as little as possible for as much aspossible” mentality. Lose this attitude or lose (in sales) forlife.
You may be smart and think being smart should countfor more in business/sales. You got good grades. You areplaying for money now; it’s a lot more competitive. Thecrafty/quick kids who weren’t competing for grades arecompeting in the sales world. The smart people in the salesgame hustle, too, so you being smart without hustle is
worthless.You may be a great athlete who is
frustrated by the nerd-balls around youwho are doing better than you—“beingme has always worked before, why do Ihave to change?” Glory days are over.Start acting like the team manager(actively nice), not the star—that’s thecustomer.
You may be very attractive. Beingattractive helps, a lot. You are frustratednot with the number of appointments,but with the lack of orders. Customersare not going to buy it from you, youhave to sell it to them and ask for it—ohyeah—more than once.
You may be very congenial. Peoplelike you, always have. You are frustratednot with the number of meaningful con-versations, but the lack of orders. Yoursecret prejudice is, “I could sell more if Iwanted to be a pushy idiot like ______
(fill in name of best salesperson on your team).” This kindof seller wants to be liked more than they want the busi-ness. It’s push or die, Mr. Nice Guy. It’s not even push, it’sask for the order.
You may be cool. Always have been. Never let themsee you sweat. Some of this attitude is good in sales. Toomuch is way too much. Customers like to see us sweat.They want to see us hustle for the business. Desire and hus-tle are hard to say no to; nonchalance is the easiest.
You may be respectful. And expect to be treated inkind. I won’t have him/her talk to me that way! Feelingsare not the luxury of the master seller.Deal with nasty buyers. They are doingour job for us. They are keeping theweak away. Kill them with kindness,be thorough and Johnny-on-the-spotwith everything, and, if all else fails,bully a bully, but leave theMarquees-of-Queensberry attitudefor playing Monopoly with yourfamily.
When we embrace and over-come our prejudices, we sell more!
Building-Products.com January 2015 The Merchant Magazine 21
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Simpson Lumber Co. has agreed tosell its sawmill operations in Com-mencement Bay (Port of Tacoma) andLongview, Wa.; Meldrim, Ga.; andGeorgetown, S.C., to Interfor Corp.,Vancouver, B.C.
Simpson will retain its sawmills inand around Shelton, Wa.
The mills to be sold have a com-bined annual lumber capacity of 750million bd. ft. and produced 555 mil-lion bd. ft. in 2014. The additions willincrease Interfor’s total capacity by30% to 3.1 billion bd. ft..
Interfor said the properties comple-ment its existing facilities in the
DEALER BriefsProBuild, Denver, Co., reportedly
is exploring the possible sale of the400-unit chain.
On Dec. 5, ProBuild closed itsSandpoint, Id., location, consolidatingsales at its store in Post Falls, Id.
Vashon True Value, Vashon,Wa., ended its 37-year affiliation withTrue Value Dec. 27 and hasswitched to Ace Hardware.
Kinney & Keele True Value,Ontario, Or., has remodeled into theDestination True Value format.
Discount Lumber, North Spo-kane, Wa., suffered eight break-ins latelast year within a month’s time, result-ing in thousands of dollars worth ofstolen merchandise and vandalizedproperty.
Habitat for Humanity relocat-ed its ReStore discount LBM outlet inSt. George, Ut., from a 10,000-sq. ft.building to a 40,000-sq. ft. location onDec. 1 (Tat Chan, mgr.).
The Bend, Or., ReStore has movedto the former Backstrom BuildersCenter, after spending $500,000 torenovate the 18,000-sq. ft. building.
Pacific Northwest and Southeast.The deal is expected to close in the
first quarter.
Norbord, Ainsworth MergingNorbord Inc., Toronto, Ont., and
Ainsworth Lumber, Vancouver, B.C.,have agreed to merge, surpassingLouisiana-Pacific as the world’slargest OSB producer.
The combined company will oper-ate 15 OSB plants—13 of them inNorth America—generating $1.6 bil-lion in annual sales. It will retain theNorbord name, under current c.e.o.
Peter Wijnbergen. Its board will havean equal number of independent direc-tors from the current Norbord andAinworth boards.
Ainsworth c.e.o. Jim Lake will stayon in an advisory position for sixmonths, and the combined companywill retain an office in Vancouver, tobetter serve increasing exports to Asia.
The deal stipulates Norbord willacquire all outstanding commonshares of Ainsworth at a 15% premi-um, equating to a value of $759 mil-lion. Fifteen months ago, L-P agreedto pay $869 million for Ainsworth, butbacked out after eight months of deal-ing with anti-trust concerns.
Simpson Selling 4 Sawmills to Interfor
Sierra Pacific Building NewWashington Sawmill
Sierra Pacific Industries has begunsite preparation to build a new sawmillin Frederickson, Wa.
Construction should begin thisspring, with lumber operations begin-ning in 2016. Initially, the mill willemploy 150, with room for expansion.
22 The Merchant Magazine January 2015 Building-Products.com
Honsador Holdings, Kapolei,Hi., parent of Honsador Lumber &Building Materials , has beenacquired by private equity firm GreyMountain Partners, Boulder, Co.,from Cyprium Partners, Cleve-land, Oh.
California Redwood Co. willindefinitely idle its Korbel, Ca., sawmillin February, as it continues its searchfor a buyer (see Nov., p. 28).
Norman Distribution, Med-ford, Or., is now distributing MiraTECtreated exterior composite trim.
Boral TruExterior poly-ash sidingreceived Cradle to Cradle CertifiedTM1 distinction by the Cradle to CradleCertified Products Program.
and advice on project design areoffered to generate revenue and buildcustomer loyalty. Merchandising,including product showrooms andvignettes, are also a growing trendamong more progressive distributorsand pro dealers to reach builders andthe trades, as well as property owners,to grow their businesses.
“Distributors and dealers are care-fully reviewing which products repre-sent the best margin opportunities andhow to support these products withcurrent and prospective customers,”said Principia’s Ken Jacobson. “Thisprogram will pinpoint where and howchannel dynamics are likely to impactstrategies for both manufacturers anddistribution, and where alignmentopportunities exist.”
Two Workers Killed in PacificNorthwest Mill Accidents
Industrial accidents days apart attwo Pacific Northwest sawmills haveleft two millworkers dead.
On Dec. 9, a seven-year employeeof Weyerhaeuser, Cottage Grove, Or.,became trapped in a sawdust convey-or. Justin Simons, 31, was freed fromthe machinery by emergency person-nel, but died on the scene.
Three days later, Jeffrey Busha, 45,was killed in an accident at MankeLumber, Tacoma, Wa. No furtherdetails were available.
A number of market conditions andtrends are providing tailwind for prof-itable growth for the $120 billion-a-year lumber and building material dis-tribution industry, according to newPrincipia report.
Factors contributing to potential forprofitable growth over the medium-and long-term include growingdemand for housing, remodeling andcommercial projects; increases in U.S.population size and age; existing hous-ing stock profile; and favorable lend-ing markets.
LBM distribution companies are
adding complementary product linesto leverage cross-selling opportunitieswith existing customer relationships.Distributors and dealers are also look-ing to “out-of-category” products toreach customers in brand-new areasthat are not traditional LBM markets.An increasingly larger segment ofLBM distribution has manufacturingcapabilities, including roof trusses,wall panels, and stair production, withinstallation service available.
In addition, value-added servicessuch as direct takeoffs from buildingplans, quick-turn jobsite deliveries,
Bright Forecast for LBM Distributors
Building-Products.com January 2015 The Merchant Magazine 23
APP Watch
App: STANLEY FLOOR PLAN APPProduced by: STANLEYPrice: Free*Platforms: iOS, Android
A new app digitally measures andcreates f loor plans for builders,remodelers, estimators and d-i-yers.
Using your smartphone or tablet’scamera, view your room or spacethrough the app’s augmented realityfunction, working your way aroundyour space, designating placement ofroom corners and doors. Its intuitivesoftware estimates and automaticallypopulates each room with dimensionsand square footage calculations.
After you have created all of yourindividual spaces, you can easily linkthem together to create a completefloor plan. You can then add objectssuch as furniture, appliances, win-dows, doors and more into plans.
* The app is free to download andfloor plans can be saved, viewed andshared free of charge between fellowapp users. However, to export plansinto files and for public and commer-cial use, they will cost $2.99 each.
– Download from iTunes App Store orGoogle Play
Depot Buys Back Crown BoltHD Supply agreed to sell its fas-
tener and builders hardware distribu-tion division, HD Supply HardwareSolutions, back to Home Depot,Atlanta, Ga.
Home Depot, which spun off HDSupply in 2007, is the hardware divi-sion’s primary customer. It had beenknown as Crown Bolt, Aliso Viejo,Ca.
24 The Merchant Magazine January 2015 Building-Products.com
ciation will conduct workshops on anintroduction to building material salesJan. 20 and on blueprint reading andmaterial take-off Jan. 21-22 at theDoubleTree by Hilton, Salem, Or.
Mountain States Lumber &Building Material Dealers Associ-ation is hosting its annual productsexpo March 19 at the Denver Mart,Denver, Co. New products and ser-vices will be the focus, following achili cook-off between exhibitors.
North American Wholesale Lum-ber Association has drafted formerMLB pitcher Jim Mecir to speak onbreaking through barriers that areblocking your success, during itsannual Leadership Summit March 22-24 in Scottsdale, Az.
Western Forestry & Conserva-tion Association has adopted thetheme “Mapping the Course: Timber-lands, Forest Products Processing, andEnergy Issues for 2015” for its annualconference Jan. 28 at HeathmanLodge, Vancouver, Wa.
Speakers include Hakan Ekstrom,Wood Resources International, onDouglas-fir exports; Will Sonnenfeld,timberland investments; Murray Hall,B.C. wood supply & demand; KenShields, Conifex, production; DarrellKeeling, Northwest Hardwoods, hard-woods; WWPA’s Kevin Binam, lum-ber; Roy Anderson, Beck Group, bio-mass; Jeff Walton, Cascade PacificPulp, pulp; Tom Leeds, PacificLumber & Shipping, ocean freight;Cassie Phillips, Weyerhaeuser, certifi-cation; and Bob Flynn, RISI, exports.
American Wood Council electedSierra Pacific Industries presidentGeorge Emmerson as its new chair-man, succeeding Georgia-Pacific’sFritz Mason.
New 1st vice chair is Tom Corrick,Boise Cascade Wood Products; 2ndvice chair Andrew Miller, StimsonLumber; re-elected director AubraAnthony, Anthony Forest Products;and new director Allyn Ford,Roseburg Forest Products.
Black Bart Hoo-Hoo Club hostsits annual industry night Jan. 14 inRedwood Valley, Ca., following onJan. 15 by Humbolt Hoo-Hoo Club’s43rd annual crab feed in Eureka, Ca.
Building-Products.com January 2015 The Merchant Magazine 25
P.O. Box 1802, Medford, OR 97501 • (541) 535-3465 • Fax 541-535-3288 • www.normandist.comSuperior Service, Products & Support – 100% of the Time
Distributed By
MOVERS & Shakers
Mike Spitulski has been promoted tosales mgr. at Redwood Empire,Morgan Hill, Ca.
Chris Lynch, general mgr., CedarCreek Denver, Co., has retired after42 years in the industry.
Jarrett Deschenes, ex-CapitalLumber, is a new account mgr. atUniversal Forest Products,Riverside, Ca.
Bryan Craig has been promoted togeneral mgr. of Snavely ForestProducts, Denver, Co.
Hugh Paarmann has been promotedto national sales mgr. for CedarValley, Hollister, Ca. Jon Whorleyis now a v.p.
Chris Lynch, general mgr., CedarCreek Denver, Co., has retired after42 years in the industry.
Jamison Ryan is new to sales atSierra Forest Products, Denver, Co.
Wendy Minichiello, ex-ABC Supply,has rejoined Weyerhaeuser, asSouthwest region mgr., based in theSan Diego, Ca., area.
Greg Frohn, ex-Interfor, has beennamed mgr. of Northwest marketsales for Forest2Market, workingfrom Hayden, Ut. He succeedsGordon Culbertson, who was pro-moted earlier to Eugene, Or.-baseddirector of international business.
Brendon Bolton, ex-Rock CreekLumber, is now general mgr. ofBloedorn Lumber, Lewiston, Mt.
Austin Overman is now in outsidesales with Sunroc BuildingMaterials, Lehi, Ut.
Eric Wareham has been appointeddirector of government relations forWestern Wood Preservers Institute,Vancouver, Wa.
Gabriel Zepeda, ex-SepulvedaBuilding Materials, is new to out-side sales at Thompson BuildingMaterials, Lomita, Ca.
Frank Ready, ex-ArmstrongWorldwide, has been appointedc.e.o. and a director of Henry Co.,El Segundo, Ca.
Thomas Ringo has been officiallynamed c.e.o. of Pope Resources,Poulsbo, Wa., after six months asinterim c.e.o.
Jim Logan, owner and president,Metriguard Inc., Pullman, Wa., waspresented the Bronson J. LewisAward for leadership and contribu-tions to the industry during APA’srecent annual meeting.
Wesley Barker has joined BMC,Atlanta, Ga., as chief operatingofficer. Also new are Noah Gay,v.p./controller; Terry Arnold, v.p.-human resources; and SherrieRicker, director of tax.
Jim Logan, owner and president,Metriguard Inc., Pullman, Wa., waspresented the Bronson J. LewisAward for leadership and contribu-tions to the industry during APA’srecent annual meeting. Dr. B.J.Yeh, APA’s director of technicalservices, was named chairman ofthe Canadian Standards Associ-ation A369 technical committee onwood-based panels.
Jery Y. Huntley has retired after 20years as president and c.e.o. of theVinyl Siding Institute, Washing-ton, D.C. Kate Offringa is the newpresident.
Brock Lee and Russell Sprout are toblame for the new healthy menu atMungus-Fungus Forest Products’employee cafeteria, Climax, Nv.,report owners Hugh Mungus andFreddy Fungus.
Arizona Mill in the Works Good Earth Power AZ (GEPAZ)
has signed a lease on 37 acres inWilliams, Az., to build a lumber milland material processing facility.
With hopes to start site preparationbefore the end of the year, GEPAZplans to begin producing lumber andwood chips by March 2015. The millsaw will be optimized to cut logs rang-ing from 7 to 9 inches in diameter.
Good Earth Power c.e.o. JasonRosamond expects to begin milling50,000 bd. ft. a day and steadilyincrease production until they reach300,000 bd. ft. daily. “We’d like to getthe slabs in place before winter sets inso that we can establish the initial pro-duction line during the comingmonths,” announced Rosamond.
Rosamond touched on expandingmarkets and increasing processingcapacity, and how it will be necessaryfor restoration work to proceed at afaster pace: “We need to be restoring2,000 to 2,500 acres a month by June2015 to support the capacity that weare creating. That means more loggingsides, more loggers, more truckers andmore jobs at all GEPAZ facilities.”
26 The Merchant Magazine January 2015 Building-Products.com
FOR THE NEXT three months,NAWLA’s volunteers will offer
their perspectives on purchasing,starting with how they buy lumber inthis issue. Future columns will focuson how buying behavior varies byregion and how you can evaluate thesuccess of your efforts.
There are many schools ofthought about how to purchase lum-ber, from the highly academic to gutinstinct. In my opinion, successfullybuying lumber in an office wholesalecontext is about having a great plan
THINKING AheadBy Martin Carter, Carter Forest Products, and
Committee Member, North American Wholesale Lumber Association
Purchasing softwood lumber
and then making sure it is executedeffectively.
As with most business functions,the first thing you want to do is setclear goals and objectives. You needto look at every individual sawmilland build a marketing plan for eachone. In doing so, you must determinewhich mills are a good fit for your
About NAWLANAWLA (North American
Wholesale Lumber Association)is the association that deliversunparalleled access to relation-ships and resources that improvebusiness strategy and perfor-mance through sales growth,cost savings, and operationalefficiencies for wholesalers andmanufacturers of forest productsand other building materials thatconduct business in NorthAmerica.
Learn more about howNAWLA can help your businessat www.nawla.org.
business, given their geographiclocation, their product mix, and eachmills’ individual marketing strategy.You need to ask yourself and themill whether your business modeljives with the channels the millwants its lumber to flow through.
In determining these things youmust bear in mind that a friend to
Building-Products.com January 2015 The Merchant Magazine 27
everyone is a friend to no one. If youcan’t buy a certain pre-determinedvolume of lumber from any givenmill, you shouldn’t be talking tothem. It’s far better to focus energyon the mills that fit your businessmodel.
Once you have decided whichmills to focus on, you need to deter-mine who on your staff is best suitedto buy from each particular millbased on experience, personality fit,and the strategic importance of themill for your business. It is criticalfor the buyers to receive constantcoaching and training, be it in houseor from outside trainers, to improvetheir skills as purchasers in order forthe business to effectively grow.
Now it is important to determinethe appropriate volume targets foreach mill you have decided to allowinto your buying funnel. This is doneby determining each mill’s produc-tion and comparing that to the vol-ume of product your customers buyand how much you can realisticallysell given your trading staff.
From those volume targets youneed to determine how many timesper week and when you want to callthe mill. Some mills you will need tocall multiple times a day, others youmay only need to call once a week.
Now you need to know what toask when you do call the mills. It iscritical you understand the mills’functioning in depth. You need toknow how much they produce in anygiven shift, what the productionschedule is, which dimensions theyare running and when, how big eachrun will be, how much of each run ispre-sold on contract, how much theytypically like to pre-sell into orderfile, how much is committed forexport, what percentage of eachgrade they will get, and how they
typically like to price their lumber.Each mill will use a somewhat dif-ferent formula.
In addition, it’s critical to under-
stand the mill’s inventory levels.What is on the ground ready to ship?Which items are sold out for weeksin advance?
You also need to have an in-depthunderstanding of the logistical situa-tion for each individual mill. Onwhich rail line are they? How goodhas the rail service been? Are theydependent on trucks? Are their pri-mary truck markets areas out ofwhich truckers are struggling to getback hauls? What impact are thesefactors having on the mills’ cashflow?
You need to understand all ofthese factors before you can evenbegin to talk about price with themill. Once you have all the informa-tion, you can effectively market themill’s lumber to your customers.
Working in conjunction withthem, you can effectively determinehow much inventory you want toown from each mill and for whatkind of delivery times.
– Martin Carter is president of CarterForest Products Inc., Calgary, Alb., anda member of North American WholesaleLumber Association’s CommunicationsCommittee.
A Special Series fromNorth AmericanWholesale Lumber Association
2015 NAWLARegional Meetings
Feb. 3 – Boston
Feb. 25 – Birmingham
March 3 – Portland
April 9 – Vancouver
May 6 – Toronto/Mississauga
Registration Open forNAWLA’s 2015
Leadership SummitWant to hear more from
industry-leading wholesalersand manufacturers about howthey buy and sell lumber?
Join them at NAWLA’sLeadership Summit, March 22-24 at The Westin Kierland inScottsdale, Az.
The event brings togethermid-level managers and execu-tives and industry-leading com-panies to discuss top-of-mindbusiness topics and solutions fordriving revenue growth andstreamlining operations.
View the agenda and registerat www.nawla.org.
28 The Merchant Magazine January 2015 Building-Products.com
making products graded for structuralapplications interchangeable. Thelumber design values published forHem-Fir are applicable to the WhiteFir species group of the five true firs.
The Hem-Fir species combinationis one of the most important in thewestern region, second only to theDouglas Fir-Larch species group interms of abundance, production vol-umes, strength and versatility in enduse. The growth range of the speciesincluded in the group covers both theInland and Coast lumber producingregions in the West.
Representative lumber test sampleswere taken from over 35 mills produc-ing 2x4 dimension lumber in westernhemlock and the five true firs. Thetesting for the western lumber sample
PRELIMINARY TEST DATA analysis ofHem-Fir lumber samples from
western mills indicates no change topublished Hem-Fir lumber design val-ues is needed. The Hem-Fir lumbertesting was conducted in 2014.
A Hem-Fir testing report by thecooperating agencies is being draftedfor submission to the American Lum-ber Standard Committee board ofreview. It is anticipated the report willbe submitted this month.
Hem-Fir is a species combinationof western hemlock and five of thetrue firs: California red fir, grand fir,Noble fir, Pacific silver fir, and whitefir. While species in this group aresometimes marketed separately inproducts graded for appearance, thesespecies share similar design values
Hem-fir testingcompleted
SPECIAL FocusWestern Woods
was conducted by Western WoodProducts Association in cooperationwith the Pacific Lumber InspectionBureau, Redwood Inspection Service,Timber Products Inspection, and WestCoast Lumber Inspection Bureau.These western agencies have beenworking together since 2011 on thetesting program to monitor westernlumber design values.
Current published lumber designvalues are based on the in-grade lum-ber testing program. The testing wasconducted in accordance the planapproved by the ALSC board ofreview. The plan calls for the destruc-tive testing of lumber samples inbending of Hem-Fir No. 2 grade 2x4.
The preliminary data comparison tothe Hem-Fir properties established inthe original in-grade testing programindicates no change is required to thecurrently published design values. Themonitoring program affirms currentuses and building code recognition.The recognized span data for thespecies group will also remain thesame. Had the data indicated a shift inproperties, the test findings wouldhave been reviewed by the cooperat-ing agencies’ memberships and appro-priate actions taken. The final dataanalysis will be reviewed by theUSDA Forest Products Laboratory forthe approval of the ALSC board ofreview.
The testing of western species lum-ber is conducted periodically to moni-tor for changes required to the pub-lished lumber design values. The test-ing allows the lumber agencies fortimely actions to be taken if needed tosupport western lumber products.WWPA’S Russ Tuvey puts Hem-Fir sample to the test.
30 The Merchant Magazine January 2015 Building-Products.com
U.S. LUMBER DEMAND continued tostrengthen in 2014 as home con-
struction experienced modest but sus-tainable gains over 2013, according toestimates by Western Wood ProductsAssociation.
While residential constructionslowed late in 2014, residential repairand remodeling (R&R), the largestlumber market by volume, picked upthe slack. R&R construction isexpected to consume approximately17.41 billion bd. ft. of U.S. produc-tion in 2014, and 2015 demand is
Lumber marketsto continuerebound in 2015
SPECIAL FocusWestern Woods
forecast to increase to 17.93 billionbd. ft.
Lumber demand for new residen-tial construction is forecast to increasefrom an estimated 10.98 billion bd. ft.in 2014 to 13.61 billion bd. ft. in2015. Stable interest rates, an improv-ing jobs picture, and continued sloweconomic growth will contribute tomodest but sustainable gains in lum-ber demand for new home construc-tion in 2015.
Responding to increased demand,2014 U.S. lumber productionincreased an estimated 4% to 41.34billion bd. ft., compared to 39.5 bil-lion bd. ft. in 2013, according toWWPA.
Lumber production in the West isexpected to climb from 13.49 billionbd. ft. in 2013 to 14.1 billion bd. ft.for 2014.
For 2015, WWPA predicts lumberdemand will rise 8% to 44.87 billionbd. ft.
CLEAR VG DF
32 The Merchant Magazine January 2015 Building-Products.com
meeting draws the western lumberindustry’s top professionals, rangingfrom senior-level executives to salesmanagers and production personnel.You can review more informationabout the meeting at and register for
THE WESTERN LUMBER industry’slargest gathering of leading wood
products companies returns toPortland, Or., this spring with theWestern Wood Products Associa-tion’s 2015 annual meeting.
the event online at www.wwpa.org.The annual meeting will kick off
with the industry welcome receptionon Sunday March 1. Monday morningsessions get underway with the indus-try forecast breakfast with the associ-ation’s outlook for 2015 lumber mar-kets and beyond, before getting down
The American Wood Council andNorth American Wholesale LumberAssociation will also hold meetingson March 3 in conjunction with theWWPA event.
The conference will be held March1-3 at the Portland MarriottDowntown Waterfront Hotel. The
Annual lumberindustry conferencereturns to Portland
SPECIAL FocusWestern Woods
to business with WWPA standingcommittee meetings, followed by theindustry luncheon. The afternoon fea-tures a speaker session with guestspeakers covering a range of topics,including a U.S. lumber supply anddemand forecast, a price forecast for akey forest products, and an all impor-tant Pacific Northwest log supplyforecast. The day will close with thechairman’s reception, which offersmany opportunities to network withother industry professionals.
Registration fees are $325 forWWPA members, $375 for associatemembers, and $475 for all others.Fees for registrations received afterFeb. 14 increase by $50. For thosewho would like to just network withindustry folks, WWPA is offering aspecial registration for the welcomeand chairman’s receptions only onSunday and Monday nights for $125each.
Registration and hotel reservationsfor the meeting can now be completedonline, using links on wwpa.org.
Last year’s accommodationsquickly sold out, and for 2015 theWWPA block of rooms at theMarriott is certain go fast. The reser-vation deadline to take advantage ofthe special WWPA rate is Feb. 14.Those needing overnight accommoda-tions are urged to make hotel reserva-tions early.
34 The Merchant Magazine January 2015 Building-Products.com
billion in export sales for the year.Over the past five years this shows a100% increase from a healthy $586million in 2009.
Western species have led the way.Douglas fir has climbed from $151million in 2009 to $274 million in
2014 WILL PROVE to be anotherrecord year for U.S. produced
western softwood lumber exportedinto international markets. Running2% ahead of last year’s shipments of$1.154 billion into the final weeks, theestimated final should be over $1.2
SPECIAL FocusWestern WoodsBy Softwood Export Council
2014. Western hemlock and Hem-fir,starting at $41 million in 2009,climbed to $161 million in 2011, butdropped back to $111 million in 2014,mostly due to the uneven hot and coldbuying habits of Chinese importers.Ponderosa pine has maintained a
···
·
International marketsbuying more westernsoftwood lumber
Building-Products.com January 2015 The Merchant Magazine 35
steady market at about $24 millionover the past five years.
Europe, Canada, Chile and NewZealand are the major exportingregions or countries for softwood lum-ber products into international mar-kets. The U.S. is a smaller niche play-er in most markets but is a dominatesupplier in Mexico and Canada.Considering that most internationalconstruction uses stone, steel, or con-crete in structural applications, andU.S. lumber is heavily “designed” tobe used in structures, it is obvious whyU.S. production is in limited demand.International market requirements arewidely varied by specie, sizes, graderequirements and end use of the mate-rials. Traditional U.S. structuralspecies, such as Douglas fir and hem-lock are found in many non-structuralproducts. Lower grades of all species,of limited value in structural applica-tions, find a home in crating, palletsand packaging. U.S. species are usedin many remanufacturing and gluingfacilities, in parts of the world withmuch lower labor rates, for furnitureand millwork components.
Wood frame residential construc-tion is mostly limited to NorthAmerica, Japan and parts of Oceana.
2014 Softwood Lumber ExportsWestern Species by Destination Country
Douglas firJapanChina
PhilippinesCanadaMexicoTaiwan
HemlockChina
CanadaJapanTaiwanMexico
Philippines
Hem-firChina
South KoreaMexicoTaiwan
Hong KongJapan
PonderosaMexicoChina
CanadaTaiwanKorea
Pakistan
CedarsCanada
IndonesiaChina
BelgiumJapan
Caribbean
Even in those markets, North Amer-ican framing systems using 38mm x89mm (2x4) structural members, islimited to the U.S., Canada and asmall but growing segment in Japan.
Japan is the second largest woodframe building in the world, but of thealmost 550,000 wood frame units inJapan last year, only 120,000 were2x4 based. The vast majority were tra-ditional Japanese metric post andbeam timber construction using metricsizes. Structural framing sizes in NewZealand and Australia use 35mm and45mm by 90mm and 100mm sizes.However, some U.S. softwood pro-ducers are successful in these markets
and are providing metric-sized lumberto compete with other imported prod-ucts mainly from Europe and Canada.
Much of the U.S. softwood export-ed is for non-structural uses. Interiorapplications, such as doors, windows,frames, mouldings, flooring, panelingand other millwork, is a prime destina-tion for both pine and fir species.Furniture parts and glued panels arealso a destination for softwood lum-ber. Western species, such as Douglasfir and hemlock, in clear and otherupper grades, are prized in Europe forwooden window and door parts and
Quality LumberSustainable ForestsAt Bennett Lumber, we take pride in
producing quality lumber products andmanaging sustainable forests for
the next generation.
208-875-1321www.blpi.com
Jim Vandegrift Sales Manager
Quality LumberSustainable ForestsAt Bennett Lumber, we take pride in
producing quality lumber products andmanaging sustainable forests for
the next generation.
208-875-1321www.blpi.com
Jim Vandegrift Sales Manager
(Please turn to page 46)
36 The Merchant Magazine January 2015 Building-Products.com
AS PART of its free project support, WoodWorks helps building designers increase the value of their projects by maximizing height and area, such as thisUniversity of Washington student housing project in Seattle, Wa.
tility and performance. It meets coderequirements for a wide range of low-and mid-rise building types, and canbe used as a low-carbon alternative tosteel, masonry and concrete in manyapplications.
THERE ARE MANY good reasons touse wood for non-residential and
multi-family building projects. Woodtypically costs less—economicallyand environmentally—while deliver-ing more in terms of its beauty, versa-
Helping designersbuild with wood
SPECIAL FocusWestern WoodsBy Jennifer Cover, PE
And yet wood-use studies showtime and time again that, based onwhat’s allowed in the building code,wood is significantly underutilized inU.S. non-residential and multi-familyconstruction.
Building-Products.com January 2015 The Merchant Magazine 37
The U.S. WoodWorks programaims to change that.
By supporting architects, engineersand others who are in a position tospecify wood in buildings, Wood-Works connects the broader woodindustry with the design process. Wearen’t a sales organization and wedon’t promote individual products orbrands. Rather, we offer a compre-hensive package of project assistanceand education with the goal of makingit easier to use wood.
Free One-on-One ProjectAssistance
Lumber and building materialdealers often hear about projects. Youmay run into contractors or buildingdesigners who want to use wood, orwant to consider wood alongsideother options, but could use sometechnical assistance. When that hap-pens, WoodWorks is available tohelp.
WoodWorks provides free projectassistance related to the code-compli-ant design, engineering and construc-tion of non-residential and multi-fam-ily wood buildings. Our staff haveexpertise in a wide range of subjects,including but not limited to:
• Allowable heights and areas andconstruction types
• Structural design and detailing ofwood-frame and hybrid material sys-tems
• Fire resistance and acoustical-rated assemblies
• Efficient and code-compliant lat-eral system design
• Alternate means of code compli-ance
• Energy-efficient detailing• Application of advanced building
systems and technologiesIn the western U.S., the Wood-
Works field team includes three tech-nical experts who work with speci-fiers to identify wood solutions forindividual projects (see map on nextpage, WoodWorks Regions). Two areprofessional engineers and all possessin-depth knowledge of the woodproducts industry and the buildingcode variations specific to theirregion. They also understand both thebuilding design process and the manyindividuals involved in the decision touse wood, which is particularlyimportant given the diversity ofapproaches to non-residential design.
The field team is supported by theArchitectural & Engineering Solu-tions group, who help to resolve tech-
nical issues, create educational con-tent, and oversee the project assis-tance help desk. Project support isalso available by emailing [email protected].
Tailored EducationEducation is a vital part of the pro-
gram, necessary, not only for commu-nicating wood design knowledge, butto demonstrate WoodWorks’ exper-tise and connect with building design-ers who could use some assistancewith their projects. Analysis showsthat WoodWorks educational eventsare the top generator of qualified
leads that result in building conver-sions. For example, a review of pro-jects supported in 2014 shows that, onaverage, the lead contact had attendedthree WoodWorks events, with anemphasis on webinars and WoodSolutions Fairs.
A cornerstone of the program, fairsare high-profile events that include afull day of seminars tailored to theregion, wood industry booths and alunchtime presentation of the WoodDesign Awards. A recent WoodSolutions Fair in Portland, Or.,attracted 438 design professionals(54% architects and 34% engineers),
38 The Merchant Magazine January 2015 Building-Products.com
WOODWORKS REGIONS: Available at woodworks.org, this interactive map allows users todownload a v-card for the technical expert in each region.
and 83% of survey respondents said itgave them ideas that would allowthem to use wood when they wouldotherwise have used another material.Up next, the Bay Area WoodSolutions Fair will be held on Jan. 27at the Oakland Marriott City Center in
creative with its offerings. One recentexample was the Symposium, TowardTaller Wood Buildings, which gar-nered national media attention.Another was a filled-to-capacity ‘casestudy’ tour of the Cathedral of Christthe Light in Oakland, led by the pro-ject architect, engineer and builder.
Technical andPromotional Materials
Created and led by the WoodProducts Council and funded in partby the Softwood Lumber Board,WoodWorks is closely linked with anumber of partner organizations, suchas the American Wood Council,reThink Wood and the USDA ForestService. Where relevant, we utilizetheir design knowledge, research,code information and communicationmaterials to address technical issues,and we develop our own materialswith an eye to filling gaps in thebroader library of available informa-tion.
The use of WoodWorks materialsis encouraged, whether you have acustomer interested in wood’s carbonattributes or acoustic considerationsfor the design of mid-rise wood build-ings. We also publish several case
Oakland, Ca. For information onexhibit and sponsorship opportunities,visit www.woodworks.org/education-event/2015-bay-area-wood-solutions-fair.
To stand out in a busy educationmarketplace, WoodWorks has to be
We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ
We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ
WoodWorks Regions
Building-Products.com January 2015 The Merchant Magazine 39
Specializing in Softwood Specieswith an Emphasis in Western Cedars
Circle Sawn • Wire BrushedSplit Rail • Timbers • Clear VGPyroteck • Aged Wood Process
Standard & CustomMatch Patterns
In-House FactoryPriming & Staining
FSC Chain of CustodySCS-COC-000178
Respecting the forest, honoringthe past, building the future.
A nation’s pride you can build on.
Manufacturers of 6 million bd. ft. monthly of
• 5/4 & 6/4 Ponderosa Pine Shop• 4/4 Premium Pine Board Programs
State-of-the-Art Hewmill & Headrig Mill
Contact
Yakama Forest Products3191 Wesley Rd., White Swan, WA 98952
Fax 509-874-1162www.yakama-forest.com
Sheldon Howell(509) 874-1163
CASE STUDY on Stella, a 5-over-1 luxury development in Marina delRey, Ca., can be downloaded at woodworks.org.
(Photo by Lawrence Anderson, www.lawrenceanderson.net)
studies each year, on projects such the Stella developmentin Marina del Rey, which includes five stories of wood-frame construction over one story of concrete (5-over-1)and the five-building, 5-over-2 student housing develop-ment at the University of Washington in Seattle.
Strategy for SuccessWoodWorks makes a point of analyzing the results of
its activities and making adjustments to its long-term planbased on the greatest potential for success. However, itscore strategy has remained constant over the past eightyears as the initiative grew from pilot to mature nationalprogram:
• Educate specifiers about what is allowed in buildingcodes and make it easier to address code issues
• Address technical concerns and assist in the develop-ment of cost-effective wood solutions
• Address issues such as safety, durability, sustainabilityand cost
• Provide all of the above from design through construc-tion and help to ensure that the experience of using wood ispositive
According to the American Institute of Architects’Construction Consensus Forecast, non-residential construc-tion is expected to grow by 8% between 2014 and 2015.The opportunity is significant, and WoodWorks intends toensure that as many new buildings as possible are con-structed in wood.
– Jennifer Cover, PE, is executive director of the U.S.WoodWorks program. She is based in California and can bereached at [email protected].
40 The Merchant Magazine January 2015 Building-Products.com
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Fire-Rated PaversAZEK Pavers has added a Class A fire-rated paver to its
lineup that will broadly increase its acceptance for flat roofapplications, including green roofs, schools and hospitals.
The new pavers offer certified fire resistant propertiesin a thin, 4”x8” resurface paver profile, in various colors.They contain high levels of recycled content, but no halo-genated flame retardants.
Weighing only 6.5 lbs. per sq. ft., the pavers are 50% to80% lighter than most concrete rooftop pavers and installthree times faster, with no special tools.
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Building-Products.com January 2015 The Merchant Magazine 41
Nifty Fasteners Manufactured from solid
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The system is versatile, allow-ing for both horizontal and verti-cal board installations. With theaddition of a new affixing screwhole, now hanging siding verti-cally, angular and overhead canalso be easier, with no concernsof loose boards.
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Available in four widths (6”, 8”,10”, and 12”), the 1/2”-thick, var-ied width tiles can be installed innatural, non-repeating straight, orstaggered patterns for authenticslate roofing appearance.
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Sliding French DoorsThe 4-Panel Sliding French
Door by Marvin Doors &Windows brings together thebeauty of wood and the strengthof Ultrex in the largest Integritydoor yet.
The bi-parting four-panel con-figuration is available in sizes upto 16’ wide by 8’ tall.
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42 The Merchant Magazine January 2015 Building-Products.com
Noise-Control Insulation Mats Quiet Qurl FT is a new variation to Keene Building
Products’ current Quiet Qurl noise control productsfor multi-family construction. The product is equippedwith Keene’s Fast Tracking fabric liner.
Suspending the concrete mixture while expeditingthe drying time, Quiet Qurl FT can cut down dryingtimes under the right environmental conditions.
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Vibrant-Colored RailingThe new Express Yourself line of DesignRail alu-
minum railings by Feeney, Inc., combines the durabil-ity and structural integrity of aluminum with innova-tive design details.
The pre-engineered, component-based railings fea-ture bold and lively colors for all kinds of tastes, tosatisfy the most creative imagination.
FEENEYINC.COM(800) 888-2418
Building-Products.com January 2015 The Merchant Magazine 43
Salty ScrewsThe Strong-Drive
SDWH Timber Hex-HDGscrew by Simpson Strong-Tierequires no pre-drilling andreplaces bolt, washer and nutassemblies.
The screw is designed to resistsevere corrosion levels in heavy-duty marine and coastal applica-tions, such as piers, boardwalks,structural pilings, and docks.
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Mobile ConnectionsWith Spruce Computer Sys-
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The system allows the abilityto connect with customers oraccount holders 24/7, 365 days ayear. Owners can view track pur-chase history, submit orders,request quotes, view accountactivity and balances, and makepayments on their account.
the only patented wood siding sys-tem that’s exclusively designedwith a profile that hides the fasten-ers as it’s installed from the topdown. The result is a reliable,durable, low-maintenance sidingwith a clean look.
The system stands up to theharshest conditions and makesinstallation fast and easy.
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44 The Merchant Magazine January 2015 Building-Products.com
HOLIDAY CHEER was in the air at the WestCoast Lumber & Building MaterialAssociation’s 2nd Growth holiday meeting atthe Embassy Suites in Brea, Ca. [1] AliUniack, Patrick Adams, Kristen & SteveSchroeder. [2] Endy Flores, Philip Ho, JoseJimenez. [3] Sean & Roslyn Fogarty. [4]
Denise Bough, Will Lowe, Sandy Touw. [5]Jason Womack, Jean Henning, ChrisMcDonough. [6] Bill Sullivan, Daniel Hines,Rex Klopfer, Al Reed. [7] Mike Garrity, MarcSpitz. [8] Joe Lozano. [9] StephanieHuntington, Alan Oakes, Holly McArthur. [10]Mike Garrity, Bil l Young. [11] Brenden
Hexberg, Jeff Donahoo. [12] Jay McArthur,Brian Bunt, Steve Schroeder, NatalieAllen,Chris Huntington, Alex Uniack. [13] DougWillis, Tim Hummel. [14] Trip Malopsy, JohnAllen, Joe Allotta. [15] Chris McDonough, JeffBloch. [16] Hector Barrera, Natalie Franco.
(More photos on next page)
Phot
os b
y Th
e M
erch
ant
2ND
GR
OW
THH
OLI
DA
Y
W C L B M AC h r i s t m a s(cont inued) :[17] MarkGahnal, SeanO s b o r n e ,Alan Oakes,M e l i n d aGanahl. [18]Rick Deen,John Assman.
[19] Bob Golding. [20] Nancy Shaw, ShawnKnight. [21] Alan Oakes, Craig Larson. [22] AlexUniack, David Abbott. [23] Mark Huff, BetsyBendix. [24] Pete Meichtry, Ian Murphy. [25] MoShearer. [26] Pete Gahnal.
Building-Products.com January 2015 The Merchant Magazine 45
2N
DG
RO
WTH
HO
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YPhotos by The M
erchant
46 The Merchant Magazine January 2015 Building-Products.com
frames. Ponderosa and other westernpines are used in rustic pine furniture,and for upholstery frames in Mexico,China and Vietnam. U.S. producersare selling both metric and imperialsizes into these markets because muchof the stock is ripped and resawn toprovide “finished” metric sizes for thelocal markets.
A large portion of exported lowergrades in softwoods are used in con-crete supports for forming, wailers andposts. Since much of the worldwidestructural construction is based on theuse of concrete, there is a large
Douglas fir, importing $113 million,which was 58% of all Douglas firexported in 2014. However, with therise in the consumption tax in 2014,the Japanese market for softwood lum-ber is down over 30% from a near-record year in 2013. The vast majorityof the U.S. product is in metric sizesand lengths for post and beam con-struction. Western hemlock and Hem-fir are a distant second at $4.5 million.Other notable species include red-wood, western red and yellow cedar,and ponderosa pine.
China has become the number onemarket for U.S. softwoods, with rapidgrowth over the past five years. In2009, the exports to China were $35million. By 2011, softwood exportswere at an all-time high of $246 mil-lion, sliding back in 2014 to $182 mil-lion. This was due in part to Chinesebuying patterns, more production inCanada moving to markets in China,and entry from other exporting regionssuch as Europe and New Zealand.China will continue to look to the out-ward for increased supply for rawmaterials and low cost remanufactur-ing stock. Hemlock was the leadingU.S. species imported in 2014 at $116million, representing 82% of all hem-lock exported. Douglas fir, cedar andponderosa pine were the other majorwestern species.
Mexico is the fourth largest marketfor western species. Its imports havefollowed the U.S. economy upward,from $94 million in 2009 to $169 mil-lion in 2014. Mexico is a low-gradepine market, with ponderosa pine theleading known species imported,behind “other softwoods.” Usesinclude furniture components, pallets,crating and millwork. Douglas fir isalso imported for some structuralapplications along the border. Themajor competition to U.S. species isradiata pine from Chile.
Canada is a perennial top destina-tion for U.S. softwood species, butthere is limited data as to how much istransshipped to the Pacific Rim viaVancouver and to Europe via the St.Lawrence, although anecdotal datapoints to a large percentage. It shouldbe noted that western species such asDouglas fir are used in constructionand remanufacturing and componentsthroughout Canada.
Looking at all U.S. softwoodexports by region and leading country,China, Canada, Japan and Mexico areby far the leading markets for soft-woods, with eastern Asia following.
demand for formwork materials at alllevels. Some world markets requirestructurally graded materials, somecultures use the material repeatedly,but some see wood as a single usematerial and aim for a cost competi-tive disposable supply, and use theremains for fuel or local d-i-y projects.Western softwood species have founddistinct foreign markets based onspecies and size. For strength, longlengths, and large sections of solidlumber, the Pacific Northwest is theplace to go.
The Pacific Rim is the leading mar-ket for western species, with Japan theleading destination. Japan is the majorexport market for U.S.-produced
International Markets(Continued from page 35)
ROUGH TIMBERS
UTILITY POLES
PRESSURE TREATED LUMBER
FIRE RETARDANT TREATED LUMBER AND PLYWOOD
Thanks to our customers and vendorsas we begin our 30th year
Building-Products.com January 2015 The Merchant Magazine 47
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LOS ANGELES Hardwood Lumberman’s Clubheld its annual holiday party Dec. 13 at the his-toric Five Crowns Restaurant in Corona delMar, Ca. Longtime member Keith Swaner,Swaner Hardwood, Burbank, Ca., was pre-sented with the 2014 Lumberman of the YearAward. [1] Beverly & Keith Swaner. [2] DanBohannon, Kit Rohm, Heidi & Stephen Ondich.[3] Mark Michie, Lisa Rains. [4] Joyce &Walter Ralston. [5] Steve & Jan Arnold, Dana& Alan Arbiso. [6] Dale Bohannon, Walt & DianMaas, Charlie Bohnhoff. [7] Kathy & BillFitzgerald, Deonn Deford, Drea Deford. [8]John Mortati, Tina Valencia, Marty & RandyPorter. [9] Mindy Ward, Richard & ShereePhillips. [10] Lynn & Nathan Osborne.
48 The Merchant Magazine January 2015 Building-Products.com
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CLASSIFIED Marketplace
IN MemoriamRichard “Dick” Caffall, 84, for-
mer operator of Caffall BrothersForest Products, Newberg, Or., diedfrom a stroke Nov. 4 in Tualatin, Or.
In 1948, he joined the businessfounded by his father and uncle. Heand his brother, Chuck, later ran thecompany, until he left in 1984. In1986, he started a remodeling busi-ness with his son, Curt, and thenworked in new home constructionwith his son, Rick, until retiring in2004.
Wayne J. Felder, 93, formerowner of Montavilla Lumber,Portland, Or., died Dec. 10.
A U.S. Army veteran of WorldWar II, he owned and operatedMontavilla Lumber from 1946 untilselling it in 1996.
William Grady “Bill” Martin,72, longtime Denver area lumberman,died Dec. 6 in Longmont, Co.
After serving in the U.S. Navy, heentered the lumber industry in 1963,with Aurora Lumber Co., Aurora, Co.He later joined Sterling Lumber Co.,Denver, Co., as warehouse foremanand in 1967 became a salesman andlater assistant manager with ChapinLumber Co., Aurora, until 1975.
He then worked as a minister until1983, when he went into sales atUnited Building Centers, Longmont.
offers an entertaining glimpse into thepeople and events that have shapedthe first 100 years of Patrick Lumber.Founded January 1, 1915, by CharlesC. Patrick and his colleague, WilliamA. Brushoff, the company was one ofthe first lumber trading firms, helpingto pioneer the art of matching produc-ers and products with customers andend users in a fashion that is com-monplace in the industry today.
Chock-full of memorabilia, his-toric ephemera, and first-person anec-dotes from throughout the company’shistory, the book takes the reader on achronological journey of a companythat has survived two World Wars, aGreat Depression, a Great Recession,and a near-crippling Department ofJustice investigation. Perhaps mostremarkable, though, is the fact thatPatrick Lumber had only five presi-dents during its first 99 years. (Halseybecame the sixth when he succeededJim Rodway earlier this year.)
“This book is a tremendous tributeto the people, the customers, and thesuppliers who have helped PatrickLumber Company thrive over theyears,” Halsey said. “It’s a fitting wayto mark the accomplishments of ourfirst hundred years, just as we embarkon what we hope will be an equallysuccessful second century.”
Patrick Lumber’s traders are busydistributing copies of the book to thecustomers and suppliers with whomthey work. Others who are interestedin purchasing a copy can contactPatrick Lumber directly at (503) 222-9671 or [email protected]. It is alsoavailable at amazon.com.
In 1988, he became assistant managerof Diamond Lumber, Longmont, andmoved to its Boulder, Co., branch twoyears later. He stayed on afterDiamond was acquired by BMC Westin 1991, working in purchasing untilhis retirement in 2009.
Josie Mae Friesen, 92, retired sec-retary, bookkeeper and co-owner ofLivingston True Value Hardware,Livingston, Ca., died Nov. 22.
She and her late husband, DaveFriesen, opened the store in 1965 andoperated it until retiring in 1981.
Book Marks Patrick’s 100th When the management team at
Patrick Lumber, Portland, Or., starteddiscussing what the company shoulddo to mark its 100th year in business,Patrick’s Dave Halsey suggested pub-lishing a book filled with anecdotesabout life in the lumber trading busi-ness. Agreeing that this was an imagi-native way to celebrate the centennial,the rest of the board membersappointed Halsey to lead the effortand thus began a two-year projectresulting in last month’s release ofBusiness is Good: Stories of PatrickLumber Company’s First Century.
“It’s not every day a company inthe lumber business turns 100 yearsold,” Halsey said. “We thought theoccasion called for something uniqueand different.”
Business is Good, by Timm Locke,
WHOLESALER is celebrating its centennialwith the release of a new book on its history.
Building-Products.com January 2015 The Merchant Magazine 49
DATE BookListings are often submitted months in advance. Always verify dates
and locations with sponsor before making plans to attend.
Los Angeles Hardwood Lumberman’s Club – Jan. 8, meeting,Heroes, Fullerton, Ca.; (626) 445-8556; lahlc.net.
Building & Remodeling Shows – Jan. 9-11, Norris-Penrose EventCenter, Colorado Springs, Co., and Oregon Convention Center,Portland, Or.; (800) 374-6463; www.homecentershow.com.
San Diego Home Show – Jan. 9-11, San Diego Convention Center,San Diego, Ca.; www.homeshowsandiego.com.
Black Bart Hoo-Hoo Club – Jan. 14, industry night, Broiler Steak-house, Ukiah, Ca.; (707) 621-0485; blackbarthoohoo181.org.
Guardian Building Products – Jan. 16-19, show, Indiana Conven-tion Center, Indianapolis, In.; (800) 569-4262; guardianbp.com.
Western Pallet Association – Jan. 16-20, annual meeting, RanchoLas Palmas Resort, Rancho Mirage, Ca.; (360) 335-0208; www.westernpallet.org.
Western Building Material Association – Jan. 20, introduction tobuilding materials sales; Jan. 21-22, estimating workshop,DoubleTree, Salem, Or.; (360) 943- 3054; www.wbma.org
International Builders Show – Jan. 20-22, sponsored by NationalAssociation of Home Builders, Las Vegas Convention Center,Las Vegas, Nv.; (202) 266-8610; buildersshow.com.
National Kitchen & Bath Assn. – Jan. 20-22, show, Las VegasConvention Center, Las Vegas, Nv.; (800) 843-6522; nkba.org.
Surfaces – Jan. 20-23, Mandalay Bay Convention Center, LasVegas, Nv.; (972) 536-6358; www.surfaces.com.
Northern Utah Home Show – Feb. 6-7, Davis Convention Center,Layton, Ut.; (888) 433-3976; www.acshomeshow.com.
Colorado Springs Home & Landscape Expo – Feb. 6-8, Norris-Penrose Event Center, Colorado Springs, Co.; (800) 374-6463;www.homeshowcenter.com.
Tacoma-Olympia Hoo-Hoo Club – Feb. 10, crab feed, High CedarsGolf Course, Orting, Wa.; (253) 531-1834; [email protected].
Building Industry Assn. – Feb. 10-11, winter governance meetings,Citizen Hotel, Sacramento, Ca.; (949) 553-9500; www.cbia.com.
Western Building Material Association – Feb. 11-12, blueprintreading & material take-off, DoubleTree by Hilton, Salem, Or.;(360) 943-3054; www.wbma.org.
Los Angeles Hardwood Lumberman’s Club – Feb. 12, pool tour-nament, Danny K’s, Orange, Ca.; (626) 445-8556; www.lahlc.net.
National Frame Building Expo – Feb. 18-20, Louisville, Ky.; (800)726-9966; www.nfba.org.
Oregon Logging Conference – Feb. 19-21, Lane County Fair-grounds, Eugene, Or.; www.oregonloggingconference.com.
Western Wood Preservers Institute – Feb. 19-20, EmbassySuites, Portland, Or.; (360) 693-9958; www.wwpinstitute.org.
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50 The Merchant Magazine January 2015 Building-Products.com
A Michigan hardware store has discoveredthat adding an in-store post office has been good forthe community and also good for business. Located inGlenn, Mi., Gerstner Hardware is home to the city’sVillage Post Office, a vital part of the community.
When U.S. Postal Service officials announced theyhad lost the lease on the building that was the Glennpost office in 2011, they told residents that with theclosure of the office, the community would lose its ZIPcode. In a small town like Glenn, that was a big deal.
It was also a concern to Gernster Hardware ownersRobert and Vicki Amberg, who lived in town for 15years. The Ambergs had an idea that the post office behoused under their hardware store, as it would be awin-win situation for both Gernster’s foot traffic andthe community’s desire to save the post office. TheAmbergs thought the idea was only appropriate, as thehardware store has served the town for almost 100years.
“It’s a win-win situation. It helps our financial situ-ation, and it increases foot traffic for the business’owners. In this case, people coming in to pick up mailand buy stamps can also buy things at the store,” saidSabrina Todd, customer and media relations for U.S.Postal Service.
Both Robert and Vicki Amberg expressed excite-ment for the merge and feel it has helped the businessgrow now as it will in the future. The enthusiasm pour-ing out from the community is only helping the hard-ware store get more popular, as more locals are visitingthe store after they use the post office.
“Local residents were elated to see this happen inour community. Being a part of this ‘non-brick andmortar’ network is a win-win for both the UnitedStates Postal Service and Gerstner Hardware,” saidVicki. “Our daily foot traffic has dramaticallyincreased, bringing new customers to our store.”
POST MASTER: Housing the only post office in town hasincreased foot traffic at one Michigan hardware store.
