The Merchant Magazine - September 2012

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

September 2012Volume 91 �� Number 3

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

Special Features9 MARGIN BUILDERS

CAPITALIZE ON REDWOOD PROMOTIONS

12 PRODUCT SPOTLIGHTSTEEL SCREWS ADAPT TO EVOLUTION

OF THE DECKING INDUSTRY

13 FEATURE STORYTHE FUTURE OF OSB MANUFACTURING

15 PRODUCER UPDATE: OSB 2012

16 INDUSTRY TRENDSRECENT IMPROVEMENTS IN OSB

18 COMPETITIVE INTELLIGENCETWO-UNIT NEW MEXICO DEALER

REBRANDS FOR THE FUTURE

24 MASTERING LEADERSHIPCOACHING THE UNCOACHABLE

36 PHOTO RECAP: UMPQUA MILL WEEK

In Every Issue6 TOTALLY RANDOM

20 OLSEN ON SALES

22 GREEN RETAILING

28 MOVERS & SHAKERS

36 FAMILY BUSINESS

38 NEW PRODUCTS

46 IN MEMORIAM

47 ASSOCIATION UPDATE

48 CLASSIFIED MARKETPLACE

49 DATE BOOK

50 IDEA FILE

50 ADVERTISERS INDEX

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There is no quick fix—the real problem is uncertainty

DURING MY MANY CALLS, I try to assess the heartbeat of the industry, and of late the bestthat most can say is that business is better than last year. In certain parts of the coun-

try, improvement is marginal. In areas initially reporting strong sales, I sense that businesshas taken a step back in the last month or so. While I certainly hear from individual compa-nies that are doing well, many are still bobbing along.

But the housing and remodeling industry cannot really change until there is a vastimprovement in business outlook nationwide, and individuals and businesses are confidentthat they can spend and invest and not regret it later. High uncertainty creates a vicious cir-cle or standstill and paralysis. There are so many factors outside of our control today thatwe live in a perpetual state of waiting for the other shoe to drop. We lack confidence—andwith good reason. Economic growth appears to be slowing again, we are burdened byunemployment, the euro debt crisis, the China slowdown, and the looming fiscal-cliff crisisat the turn of the year. Businesses are reporting that they are putting capital and humaninvestments on hold until there is more clarity. On an individual basis, if we look at ourinvestments, many of us have fled the market and not for any other good reason than wehave not made a buck in many a year. We keep getting sold on the notion of investing forthe long run, but continue to see that as soon as we show any gains they get wiped out bythe next catastrophe. I read recently that Boomers like me cannot take risk. Gen X and GenY believe in Facebook but not its stock, and Gen Z has no money.

The job crisis in this country needs to get to a healthier state. It may be true that we areno longer at the official 10% level of unemployment of recent years, but the current 8.2%figure is a joke, as it does not include the millions who cannot get a job and have given up.What many do not know is that the unemployment jobless rate is based on a survey of60,000 households. So my question is, who selects these 60,000? With such a small sam-ple, I am not sure how real the number is. I know a handful of people who have been laidoff and not one of them have found a real job yet—some even after a year and all highlyqualified. Many of us could replicate this example with our own friends, meaning trueunemployment is probably over 15%.

So how do we get an improved situation, when our job creation engine is at a crawl?Frankly, we as a nation must first realize that this is our No. 1 critical need and thatdecades of kowtow-ment to other nations and allowing our industries to be decimated byunfair business practices must change. Our seeming willingness to bash big business (actu-ally, all business) will not allow this country to get out of this crisis.

We have hovered around 8.1% to 8.3% unemployment for a year or so, and it does notseem to change. (And that doesn’t take into account that most people, even when re-employed, end up with substantially less pay than in their previous employment.) The factis that we have accepted losing our industries and allowing our average wages to decline.We need to grow our economy, as we only average 151,000 jobs a month to date this year.Add this to the fact that 50% of families are not earning enough to pay taxes and the scopeof the issue is very clear. Forget the theory of taxing the rich more—you cannot tax themenough to get out of this mess. We need not only to create new industries, but also to find away to bring back and re-tool some of our old industries. We need to encourage R&D, andwe have to take advantage of the energy at our disposal.

Our regulations absolutely put us as at a disadvantagecompared to our international competitors. We have seriousstructural issues that only seem to get worse, not better. Ourcountry’s long-term solutions are pushed aside by politiciansdetermined to maintain their comfy lifestyle and stay inpower. Regulations, taxation and energy are all issues thatnever change for the better. With Administration afterAdministration and Congress having tantrums, noth-ing changes and we continue to watch our econo-my sink even further. It scares me. I hope itscares all of you, too—and especially those inCongress and the White House, whomever theymay be in 2013. What we want now is trueleadership through this black hole!

TOTALLY RandomBy Alan Oakes

Alan Oakes, [email protected]

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

THE MISSION of the CaliforniaRedwood Association is to lever-

age the collective strength of its mem-bers to communicate all benefits ofredwood lumber in a way that comple-ments each member’s marketing andpromotional programs.Dual impacts of economic reces-

sion and competition from alternativeproducts have affected redwood mar-ket share just as they have for manyother traditional building products. Asthe economy grows its way out of thedepths, the redwood industry is imple-menting plans to grow anew just as thethousands of acres of healthy, sustain-able redwood forests grow alongCalifornia’s north coast.The plan includes various methods

of media outreach: radio, television,traditional print, web-based, and socialnetworking. “We love redwood andwe love working with the CaliforniaRedwood Association, a longtimepartner and supporter of On the House(OTH) with the Carey Brothers,” sayspopular radio host and syndicatedwriter James Carey. For example, thisyear, the CRA was the platinum spon-sor of the show’s Great BackyardMakeover Sweepstakes, whichreceived 8,000 entries, the most ever.Most entrants applied through a link toFacebook, which greatly expandedCRA’s social network. The grand prize winner of the 2012

contest, Jeffrey Sellier of Marietta,Ga., will receive $5,000 worth of red-wood decking. “My entire family waspresent during the grand prizeannouncement; they were all cheering.I can’t wait to get started on the reno-vation of my backyard entertainmentarea,” he says.

OTH column in two issues of FamilyHandyman magazine. Indeed, media continue to be

attracted to redwood. On June 8, theredwood message was heard by listen-ers of Your Place, Your Space Home& Garden Radio on KNOC 1680 andbeachcitiesradio.com in OrangeCounty, Ca. As CRA president, I dis-cussed green decking materials, red-wood versus plastics, and how red-wood decking and siding meets theCalifornia wildland/urban interfacefire codes with host Ana Hitzel, astrong proponent of natural, energy-

Redwood ramps upExpanded promotions help sell redwood

MARGIN BuildersBy Charlie Jourdain, California Redwood Association

The redwood will be used toreplace an existing non-redwood deck.This will add significant value to theSellier residence and provide a storythat CRA can follow in the future.In addition to the sweepstakes, the

redwood message can be heard at Onthe House radio, which airs everySaturday morning from 9:00 a.m. to1:00 p.m. EST, reaching more thantwo million listeners on 200 stationsnationwide. Redwood content willalso be included in the OTH e-newsletter, within banner ads onwww.onthehouse.com, and in the

All photos courtesy CRA


DRAMATIC ROUGH-SAWN redwood barn serves as furniture maker’s workshop.

efficient building materials such asredwood.Another Southern California-based

proponent of naturally beautiful anddurable redwood is professional deckdesigner Claudia Schmutzler.Recently featured in Better Homes &Gardens’ “Deck, Patio & Pool” issue,Claudia described her dream deck:“That’s an easy one: my own custom-built redwood deck.” Claudia, who often promotes red-

wood in media interviews, has pro-jects that can be seen atwww.windsordecksandgardens.com. Radio and magazines are not the

only media being used to get the red-wood message out. Fans in the BayArea tuned into local Oakland A’sgames have no doubt seen the TV adsespousing sustainable forestry andredwood aired by CRA memberMendocino Forest Products. If you happened to be lucky

enough to get a ticket to the sold-out

A’s vs. Red Sox game on July 3, youwould have seen the between inningaward of new redwood decking to adeserving entrant in the “ReplaceYour Ugly Deck” contest sponsoredby CRA member Humboldt RedwoodCo. In the near future, residents of

California’s north coast will be seeingTV commercials promoting the bene-fits of locally grown and sustainableredwood lumber products, a key tothe region’s current and future eco-nomic vitality. This is all part of aHumboldt-Made campaign to pro-mote the local economy. Check outwww.humboldtmade.com. CRA communications efforts over

the past several months also have cen-tered on the Life Cycle Assessmentstudy conducted by CORRIM. Nowthat the study is complete, the infor-mation can be used to help promotethe significant environmental benefitsof naturally beautiful redwood vs.

imitation plastic alternatives. The LCA proves that redwood has

little impact on our environment andpossesses a miniscule environmentalfootprint when compared with that ofplastic and composite decking. Theamount of carbon stored in redwooddecking exceeds the total carbonemissions emitted during its wholelife cycle. “If you were trying to invent an

industrial process that would take car-bon dioxide out of the air and store itsafely, had no negative impacts on theenvironment, and created productsyou can use every day using very lit-tle energy to do it, you couldn’t dobetter than inventing a forest. Andredwood forests do an excellent job atthis because of the ideal climatewhere they grow,” says CORRIMexecutive director Elaine Oneil, Ph.D.To further redwood’s environmen-

tal message, a new website—www.RootedInTruth.org—has been

While recognizing that the major-ity of redwood sales are deckingrelated, the California RedwoodAssociation has also noticed that

more and more builders and remod-elers—and indeed its own millmembers—are utilizing redwoodbeyond the deck, on projects and

products both big and small. For example, Humboldt

Redwood Co. offers ready-to-useredwood posts, railings and panelsfor easy fence construction.Similarly, the California RedwoodCo. recently launched a popular lineof redwood planters, perfect forflanking a front door or markingborders of a garden path. On a larger scale, we recently

came across a project in SonomaCounty, Ca., that is a prime exampleof how builders can use redwood: acustom furniture maker has featuredredwood throughout his dreamworkshop and studio. His inspirationcame from a natural meadow backedby redwood trees below the mainhouse: the perfect location for ahigh-end barn. His goal was to blend the new

structure with the wonderful sur-roundings. An exterior of re-sawnCalifornia redwood boards, finishedwith rough-sawn battens, mirroredthe naturally weathered 60-year-oldboard and batten siding of the mainhouse. Other structural details, suchas the ornamental roof stays and fas-cia, were also constructed fromrough-sawn California redwoodlumber.

Redwood Isn’t Just for Decking


launched. Developed by the CRA inpartnership with other organizationswho share a common goal of provid-ing accurate environmental informa-tion, RootedInTruth.org is committedto presenting the facts as clearly andfairly as possible. Our goal is simple:to clear the air and let the truth takeroot. RootedInTruth.org information

was distributed during the PacificCoast Builders Conference June 27-28 in San Francisco, where CRA andmember personnel staffed an associa-tion booth, and at the Forest Center atCal Expo July 12-29 in Sacramento.Plans are in place by CRA and mem-bers to staff booths at 2012 DeckExpo Oct. 10-12 in Baltimore, Md. While it may appear as if all indus-

try promotional activities are focusedaround decking, everything from sid-ing to planter boxes fit into our cam-paign, illustrating the tremendous ver-satility of redwood. Case in point; the

redwood board-and-batten siding usedto clad a fabulous barn-like structureused as a music studio, woodworkingshop, and garage in Sonoma County,Ca. (see sidebar below). Clad in durable and affordable

Construction Heart redwood, theFactorworks Studio has been profes-sionally photographed by CRA foruse in current and future promotions.The Factorworks Studio is currentlybeing featured on www.houzz.com, aswell as other electronic and traditionalmedia outlets.These images will join the hun-

dreds of other redwood images main-tained by CRA. Check out the “BeInspired” section of CRA’s website(www.calredwood.org) orwww.redwoodthenaturalchoice.comfor a sample of images that are avail-able for use by members and cus-tomers to help promote and sell theirredwood products. Maintained byCRA art director Ali Vorhies

([email protected]), the extensiveredwood image library is in constantuse. Examples include a number of

images used by Big Creek LumberCo. in the recent redesign of its corpo-rate website, www.big-creek.com.“Without this fantastic resource, CRAmember companies would have todevote significant financial resourcesto scout and photograph such pro-jects,” said Big Creek president JanetWebb. Good old-fashioned newspaper ads

are certainly a traditional way to reachlocal audiences, as well. For example,for several seasons Bruce BauerLumber & Supply, Mountain View,Ca., has successfully run co-op news-paper ads for redwood planter boxeswith the CRA tagline “Redwood theNatural Choice.” Something as simple as raised gar-

den beds can also be used as a valu-able educational tool. Ashby Lumber,Concord, Ca., recently provided red-wood for the “edible garden” atValhalla Elementary School inPleasant Hill, Ca. “Thanks to the gen-erosity of CRA and Valhalla Dad’sNetwork, our students will not onlybe eating a more healthy diet, but arereceiving a valuable lesson in the useof natural, sustainable products suchas redwood,” said Valhalla principalMarji Calbeck.While planter boxes and raised

garden beds can be very simple, theCalifornia Redwood Co. has intro-duced a line of high-end planters andAdirondack style furniture, availablethrough its online store (www.cal-iforniaredwoodco.com). “The qualityof materials and construction is farabove that of typical wood patio fur-niture,” says CRC’s Kelly Lusa, mar-keting and product development. These beautiful planters and furni-

ture were displayed at Sunset maga-zine’s Celebration Weekend June 2-3in Menlo Park, Ca., and at theHumboldt Made Fair in Eureka, Ca.,June 21-24. Two lucky PCBC atten-dees won CRC redwood planter boxesby stopping at the CRA booth andentering a raffle. Hopefully, you have gathered that

the wheels never stop turning at CRAor its member mills when it comes topromoting this remarkable product.Pass the word that redwood hasramped up for 2012, and stay tunedfor an expanded commitment to col-laborative redwood marketing in2013.

In addition to the woodworker’spower tools and materials, the red-wood barn has a few “man cave”elements. The north wing is dividedinto lumber storage, playing studio,and recording equipment room. Thesouth wing was developed into athree-car garage with painted autoand motorcycle logos gracing theinterior wall.

The 2,000-sq. ft. workshop/studioat once takes command of the mead-ow, yet still appears at home in theopen space. Complementing its sur-roundings, the barn is a greatdemonstration of how redwood lum-ber shines through on every type ofproject.Redwood certainly isn’t just for

decking.


DECK FASTENERS have developed rapidly since the intro-duction of the first standard green deck screw in the

1990s. Although this type of deck screw was an improve-ment over the previous generation of galvanized woodscrews that had been used by contractors for many years, itis remarkable how little this standard model has evolved. Instead, advances in the design of deck screws have

been driven largely by developments in PVC and compos-ite decking. Constant changes in the colors and technolo-gies of PVC and composite decking have spurred a range oftechnical and aesthetic improvements in deck fasteners. In terms of color alone, the first color-matched Headcote

deck fasteners were initially available in only five colors.Today, they come in almost 20 colors, in several differentthread and head designs, and in both stainless and carbonsteel. Almost every design advance was developed inresponse to changes in PVC and composite decking.Recently, however, increased availability of many dif-

ferent types of treated wood decking has focused renewedattention on the standard model deck screw. Many treatedwood decks are still built with standard deck screws thatare very similar to the screws first developed 20 years ago.However, increased variation in the appearance of pressuretreated lumber, as well as higher expectations from deckfasteners based on improvements made to PVC and com-posite deck screws, has increased demand for better colormatches and improved performance from standard deckscrews. Pressure treated lumber varies greatly by region, in

terms of wood species and pre-stained color options.Although it is typically more difficult to achieve a precisefastener color match with treated wood compared to PVCand composites (because of the natural variation of woodproducts, staining processes, and weathering conditions ofthe deck), there are now many more options for standarddeck screw color matches. Green, gray, red and tan screwsare all available on the market today. Choosing the right color match for pressure treated lum-

ber depends on many factors. For instance, gray deckscrews are popular in areas where treated wood decks aretypically allowed to weather, especially coastal areas in thenortheast U.S. In other areas, contractors and homeownerssometimes prefer screw colors that better match the original(and maintained) color of the treated lumber.Contractors using deck screws designed for treated

wood are usually most interested in very high levels of reli-ability in terms of mechanical performance and corrosionresistance, as well as ease of use. While most standard deck

screws are capable of meeting basic performance criteria,in terms of reliability there is actually a wide range of dif-ference between various screws on the market. First, lower quality screws are more likely to cam-out or

even snap during installation. Screws held to higher qualitystandards for the dimensional specifications of the recessand torsional strength of the screws, and with additionaldesign features like a reinforced countersinking head, willsave contractors time in avoiding this basic type of failure.During the life of a deck, another area of concern is the

adhesion of corrosion-resistant epoxy or ceramic coatings.If the coating does not adhere well during installation, thescrew is unable to provide any corrosion resistance, whichcan lead to staining and ultimately failure of the fasteneritself. Even if the screw’s coating is able to achieve goodresults in salt spray tests, in a real world application, theadhesion of the coating is actually more important. For easeof use, there are many features that contractors prefer,including square and star drive recesses, auger points (T-17point) for quick start, and countersinking nibs for a cleanand uniform appearance of the decking surface. These are just some of the features of the new standard

deck screw. If treated decking continues to diversify anddevelop, the standard deck screw will have to continue toevolve at a much more rapid pace than it has in the past.

– Steven Gertner is the marketing manager at StarbornIndustries, Edison, N.J. Contact him at [email protected].

Steel screws adapt tochanges in wood decking

PRODUCT SpotlightBy Steve Gertner, Starborn Industries

DECK SCREWS designed for treated wood, such as Starborn’s DeckfastEpoxy screws, stress reliability of performance and corrosion resistance,in addition to ease of use.


FEATURE StoryBy Jeff Wagner, LP Building Products

Oriented for successOSB and the building industry

AS KEY MATERIAL PROVIDERS for the buildingindustry, OSB manufacturers have seen the

effects of the country’s economic conditionsfirsthand. Fortunately, the first half of 2012 hascarried with it slow but persistent growth in thedemand for OSB, thanks in part to the low inven-tory of new and existing homes. Although antici-pated housing starts for the year are well belowpre-recession averages, they are much more posi-tive than the numbers from just a few years ago.Forecasters are calling for more growth by 2013. As the building industry slowly emerges from

the bottom of this downturn, there is some lightat the end of the tunnel. Although a revived hous-ing market may present a new set of challenges,the opportunities for innovation and productdevelopment seen along the way are already cre-ating a stronger, more diversified industry.

Opportunities for InnovationEngineered wood products, including OSB,

bring flexibility to product development andinnovation. With an intentional design and pur-poseful variation in properties, OSB products canbe developed to provide solutions for specificconstruction challenges. As the pioneer in OSB, LP Building Products

is among the producers committed to ongoinginnovation in the design and application of OSBproducts. This means listening to builders, archi-tects and engineers and working with thesegroups to create custom product solutions thatmeet their needs. New product development—such as the

recently launched LP FlameBlock Fire-RatedAll photos courtesy LP


how to meet those codes. Many states are concerned about

balancing the new codes with cost,structural requirements, and moistureprevention. Numerous states, such asMinnesota, have elected to amend thecodes to meet their specific needswhile others, like Georgia, have cho-sen to bypass the adoption of the 2012IECC code entirely.For the OSB industry, the prescrip-

tive requirements of insulated (foam)sheathing in the 2012 IECC code dis-advantage our products. LP has beenworking alongside other manufactur-ers with the Coalition for Fair EnergyCodes to help shape the future of ener-gy codes and create alternative wallassemblies that meet the intent of the2012 IECC energy codes whileaddressing state and industry con-cerns.The OSB industry has also found

additional opportunities innovatingbuilding practices on the internationalfront, particularly in South America.Because wood products are muchmore resilient under seismic condi-tions than the traditional masonrypractices in this area, LP has seen suc-cess converting South American com-panies and governments to the use ofwood for housing construction.Product innovation has gone

beyond the housing segment as manu-facturers continue to research anddevelop innovative OSB applicationsfor the industrial arena, such as furni-ture and specialty products. The flexi-bility of engineered wood productsallow the development of a panel withthe customers’ end-use in mind, aswas done with LP SuperStructFurniture Panels.Organizations such as APA–The

Engineered Wood Association, theAmerican Wood Council, andWoodWorks are encouraging the useof wood in non-traditional applica-tions. These efforts are also drivingthe diversification of OSB, as theindustry discovers places to use woodwhere it hasn’t been historically.

Recovery ChallengesAs the building industry emerges

from the downturn, all channels willbe faced with a unique set of chal-lenges.For much of 2012, the market has

been depressed. According to APA,the industry demand capacity ratiosare in the 60% to 70% range. Severalyears ago LP, like many of our supplychain partners, started the long and

OSB from Ainsworth is fed through a cutting machine in preparation for wall panel constructionat JL Schwieters’ manufacturing facility in Hugo, Mn.

JL Schwieters Building Supply,Hugo, Mn., is more than just anLBM dealer. It’s a service providerwhose custom packages from platesto peak are making life for buildercustomers a bit easier.“The thing that distinguishes us:

we offer it, design it, and install it,”says Nathan Steere, sales and pur-chasing director.The dealer’s turnkey components

division includes wall panel manu-facturing services, with a team ofskilled carpenters, a fleet of forklifts,and in-house crane service to design,fabricate, and install framing pack-ages for single- and multi-familyhomes, hotels, and more. Under itsNexStep System, JL Schwieters cus-tom builds stairways, fireplace nich-es, archways, and other interiorbuilding components that spanbeyond the basic framework. Thesystems are delivered fully assem-bled, helping to eliminate jobsiteerrors and save builders time. Forexample, a complicated 10-hourfireplace buildout is reduced to justtwo hours.Along with time savings for the

customer, the controlled productionenvironment and captive workforce

mean higher quality, greater consis-tency, and increased efficiencies,while field-shop communicationensures products and practices areinnovative and optimized.JL Schwieters uses 7/16- and 5/8-

inch 4x8, 4x9, and 4x10 OSB, pri-marily from Ainsworth Engineered,for the manufacture of its wall pan-els. The tapered-edge technology ofAinsworth’s pointSIX Durastrandsubfloors eliminates the hassles ofedge sanding. The durability andmoisture tolerance of Ainsworth’sSteadiTred stair tread panels standup to the rigors of the jobsite. “Itreally blends in well with our strate-gy that everything must be efficientto be effective,” Steere says.Its services are more in demand

than ever due to the current state ofthe housing market. “Over the pastsix years, when prices have beendepressed, many framers have vacat-ed the industry and young peoplehave been discouraged from desiringcareers in carpentry and framing.It’s a serious issue,” says Steere.“So, pre-fabricated wall panels arebecoming much more importantbecause it means more homes can bebuilt with fewer hours in the field.”

Full-Service Strategy Gives Dealer Edge

proposed 2012 IECC energy code, LPstands by the importance and value ofenergy codes across North America.We also believe the homebuildershould have a variety of products attheir disposal and have choices as to

OSB Sheathing and the growing useof LP TechShield Radiant Barrier—provides builders with more optionswhen meeting construction challenges.As many segments of the buildingindustry are navigating through the


painful task of right-sizing our operations and infrastruc-ture to accommodate the depressed demand levels of thepast six years. Through this process, our objective has beento balance our supply by region against the demand ourcustomers have for our products.Market conditions suggest the revived industry may

encounter shortages across the board from inventory totransportation. The logging infrastructure—including boththe logs themselves and the trucks used to move them—has shrunk based on demand and has the potential for aslower comeback than the market itself.There is also a shortage of flatbed trucks across North

America. As manufacturers start to ramp up productionfacilities to meet customer demand, there is a very realconcern about having the trucking infrastructure to meetthose needs. LP is aware of these challenges and is work-ing with suppliers and customers to help mitigate them.

Looking to the FutureThe building industry has gone through the toughest

five years in its history, facing changes and adjusting oper-ations as needed. But through product innovation, therehave been bright points along the way. OSB’s place in the building products industry remains

strong. As the market improves, competitive lessonslearned in the downturn will provide a new emphasis onservice to the customer and the end users’ needs for ourproducts.

– Jeff Wagner is the executive v.p.-OSB for LP BuildingProducts, Nashville, Tn. Reach him via www.lpcorp.com.

LOUISIANA-PACIFIC, Nashville, Tn., attributedstrong sales of OSB from its 14 mills worldwide for driving thecompany’s total earnings up 18% in the second quarter.

“Higher OSB prices and volume and continued volumegrowth in our siding business were the primary drivers for theimprovement in our results,” said c.e.o. Curt Stevens.

Sales for the company’s OSB mills in Chile and Braziltotaled $43 billion for the second quarter, an increase of 8%,

“Going into the second half of the year, we remain cau-tiously optimistic,” said Stevens. “Though it appears that thegeneral economy may be slowing, housing activity continuesto improve.”

NORBORD, Toronto, Ont., also reported higher second-quarter sales for its 11 OSB mills—$272 million compared to$241 million in the same period last year.

“We are finally seeing a more sustainable U.S. housingmarket recovery, and this is flowing through to our bottomline,” said c.e.o. Barrie Shineton.

WEYERHAEUSER, Federal Way, Wa., added newequipment to its OSB mill in Edson, Alb., and started produc-ing energy-efficient radiant barrier sheathing at its OSB mill inHudson Bay, Sask. The new machinery will produce drainagegrooves on the company’s Edge Gold flooring panels.

AINSWORTH, Vancouver, B.C., marked one year of norecordable injuries at its OSB mills in Grande Prairie, Alb.,and Barwick, Ont.

“Our philosophy here is that every employee needs to gohome to their family safe and sound every day,” says RandyJohnson, site manager in Grande Prairie. “Safety isn’t asometime thing; it has to be an all-the-time thing.”

GEORGIA-PACIFIC continues operations at five OSBmills in the Southeast.

HUBER ENGINEERED WOOD, Charlotte, N.C.,introduced new ZIP System R sheathing, structural wallsheathing with continuous foam insulation.

“We have enhanced our ZIP System sheathing with rigidfoam insulation to eliminate the hassles of installing multiplesystems on the jobsite,” said Brent Flotkoetter, product direc-tor of ZIP System. “This provides builders with five layers inone installation step.”

ROYOMARTIN, Alexandria, La., is moving into its fifthyear of operations at its OSB facility in Oakdale, La.

“Emphasis has been placed on translating our Eclipseradiant barrier product from a singular roof decking applicationto a wall sheathing application, which replaces traditionalhousewrap,” said Tony Rocha, senior field sales and businessdevelopment representative.

TOLKO, Vernon, B.C., lost nearly a month of OSB pro-duction at its mill in Meadow Lake, Sask., in late June, due tosevere storms. Power was not restored until July 16, and fullproduction was restored 10 days later.

LANGBOARD continues to produce OSB at its mill inQuitman, Ga.

OSB 2012

THE CONSTRUCTION industry can count on OSB manufacturers tocontinue to develop better-performing, more efficiently installed products.


Enhancements to OSB products improve residential,light commerical construction

• simplified construction features.

WWaatteerr pprrootteeccttiioonn,, wwaarrrraannttiieessOSB manufacturers have focused

on product formulations and featuresto better enable their panels to with-stand moisture during and after con-struction. This is particularly true withOSB floor panels, for which edgesealants help protect against water

MANY BUILDERS CHOOSE orientedstrand board over plywood for

its lower price. When it comes to sell-ing OSB, though, it’s equally impor-tant to emphasize performance. Asdealers know, competing on pricealone can be a race to the bottom.Keeping and growing a customer baseusually depends on showing value,not just the lowest price.

Within the OSB market is a widerange of products—from commoditysheathing to specialty floor and roofpanels. To provide builders with val-ued solutions for their panel needs,three attributes of high-performanceproducts for the sales staff to keep inmind are:• water protection and warranties,• fastener templates, and

INDUSTRY TrendsBy Chris Degnan, Weyerhaeuser

HIGH PERFORMANCE OSB panels help create quality floors. All photos courtesy Weyerhaeuser


intrusion to prevent edge swell. Suchtreatments help ensure that panelsinstall flat and remain flat and smoothduring and after construction.Manufacturers typically market suchpanels to stand apart from commodityOSB, such as a tint on the edges ofpanels to show they offer enhanceddefense against moisture.Because preventing edge swell is

vital for quality finished floors, manu-facturers also are pioneering otherways to prevent water damage. Forexample, drainage grooves added tofloor panels eliminate standing water

they believe the joist is and walkacross the floor using a nail gun torapidly attach the panel. It’s easy toveer off and end up with “shiners.”Snapping chalk lines is a good solu-tion, but takes time. To make panelinstallation faster and easier, someOSB manufacturers include pre-print-ed templates that enable crews to fol-low a straight line and improve accu-racy of fastener placement.

SSiimmpplliieedd ccoonnssttrruuccttiioonnOn many OSB floor panels, manu-

facturers now provide tongues andgrooves. Panels with these profiles

help speed construction and improvequality by creating a self-gapping fit.Crews don’t need to measure for agap; instead, they slide the tongue andgroove together. Ensuring an appro-priate gap is necessary to prevent pan-els from buckling if they expand orcontract from moisture.Another ease-of-use is how manu-

facturers load panels at the mill.Those that arrive at the jobsite bun-dled working side up make it simplerfor crews to unload and install them,without the strain of flipping panelsover. This can help speed constructionand lessen fatigue, especially in caseswhere crews have to handle numerouspanels.OSB panels can also provide

builders a simple way to build green-er. Manufacturers are able to produceOSB from quickly regenerating treesand with methods that use almost theentire log. Plus, for builders who wantconfirmation that the wood comesfrom sustainably managed forests,some OSB products carry third-partycertifications, such as that of theSustainable Forestry Initiative.

– Chris Degnan is OSB strategic mar-keting manager for Weyerhaeuser,Federal Way, Wa. For more information,check www.woodbywy.com.

ADVANCED EDGE SEALS help preventwater intrusion in panels, reducing edge swell.

DRAINAGE GROOVES on OSB flooring pan-els help eliminate pooled water during con-structon.

While manufacturers have oftenfocused on floor panels as a keycategory for specialized OSB prod-ucts, some are also offeringenhanced roof panels—especiallyradiant barrier sheathing (RBS).RBS offers the same types of

benefits as standard OSB roofsheathing, including being engi-neered to remain flat and resistbuckling, cupping, warping andsagging. It installs the same asother roof panels, yet helps lowerhome energy use.These panels are foil laminated

OSB roof sheathing that reflects97% of the sun’s radiant energy.By blocking solar energy, RBShelps reduce heat build-up in atticsso the home stays cooler. As aresult, less energy is needed for airconditioning, which in turn cancontrol costs for homeowners yearafter year.

Radiant Barrier SheathingEnhances Energy Efficiency

RADIANT BARRIER SHEATHING Is asimple-to-install way to help keep homescool in sunny climates.

during rain storms, which savesbuilders the problems and costs ofsweeping standing water off the flooror drilling drainage holes to let itthrough.A clear indicator of the improved

performance of OSB panels is theenhanced warranties now available.Some manufacturers offer “no sand”guarantees for up to 200 days, whichindicate their specialty panels canresist edge swell for more than half ayear of exposure during construction.Additionally, panels also are availablewith 50-year limited warrantiesagainst delamination, providing thebuilder and homeowner the assuranceof long-term performance.

FFaasstteenneerr tteemmppllaatteessBuilders know that reducing the

risk of floor squeaks requires thatnails or screws driven through floorpanels attach securely to the underly-ing joists. Many eyeball a line where

YOU ALL KNOW the proverbial busi-ness choices: lead, follow or get

out of the way. Not much of a dilem-ma for young Justin Ennis, whosefather, Bruce, is president and c.e.o. ofNew Mexico’s Roswell and Artesiayards, recently rebranded as BuildersDo it Center.“I’m a lead guy,” clarifies Justin,

whose longer, more official title iscorporate sales manager, adding “andI’m an optimist. Not much point inwasting your time and energy onbeing anything different,” he declares.And he’s reinventing the company

while barely old enough to shave (hebegan working for his dad 12 yearsago at age 14, before earning a collegedegree in Agricultural Economics,where he thought his future would liebefore being bitten by the sawdustbug). “I fell in love with the industry,”he justifies his U-turn—“the kind ofcustomers we serve, the buildingmaterials, the retail process—and theindependence I’ve got to play entre-preneur: to build the business the wayI want to.”Blame it on the DNA. He’s just like

his dad before him—a general manag-er who bought out his boss in the late’80s, driven by the urge to turn an ill-managed operation into a well-runcompany. Justin at the steering wheelbrings not only a vision of where totake the company, but the businesssmarts to change with the changingtimes and grasp those opportunities forgrowth.Uniting the Roswell and Artesia

Rebrandingfor the future

COMPETITIVE IntelligenceBy Carla Waldemar

ROSWELL YARD has always catered primarily to professionals.

stores, 40 miles apart, under one ban-ner, along with remodeling and remer-chandising them and refocusing theiremployees’ goals readies the operationfor the future. Wisely, at the sametime, Justin remains cognizant thateach store operates in its own nicheand demographic. “Roswell is a lum-beryard with a hardware store, with80% pro customers,” he explains,“while Artesia is more of a home cen-ter, with a 60/40 split.”And it’s Artesia that’s been better

positioned to sustain the enterprise inthis rocky economy, due to the com-munity’s robust oil and gas resources,

which are still doing very, very well. “We’ve built the wood wallhead

cellars for those operations,” Justinreports, “and our only frustration isthat we’re not set up to do even more.Unlike our competitors, we decided toassemble them to order—and it’sworked out even better than I’dthought; we can actually make prettydecent money.“Roswell, definitely more of a pro

store, was sailing along nicely” beforethe bust, supplying builders of thetown’s McMansions. But when thatniche dried up three years ago, Justinturned on the proverbial dime towhere a new need was arising—pro-duction builders addressing the hous-ing shortage of more modest homes abroader workforce could afford.“I reached out to the builders and

asked them, ‘Try us! We’re smaller,more nimble. Our prices are competi-tive and, as added value, we’re nextdoor,’” rather than simply a cog in thedistant national wheel they’d been inthe habit of using.In the same gutsy manner, Justin-

as-outside-salesman approachedpotential commercial clients—mostrecently winning the business for anew hotel going up. “We’ll stock roof-ing, lathe and plaster, shingles, sellthem insulation, tons of drywall, andsupply the framing, versus workingwith a national outfit three hoursaway. We’re very competitive andwe’re just down the road.” He paintsthe big-picture outlook of Builders’future: “Instead of bringing it in fromTexas, we’ll use Roswell as a centralhub and drive two hours out from



MAKEOVER provides more, easier-to-find options for all customers.

PARTNERS Justin Ennis (left), with father Bruce Ennis.

there” to serve the wider territory. “In a small productionmarket, we’ll be a great market force, building big growth.(This is all a little different from five, 10 years ago for us,”he confides. “This”—pause for a ta-da—“is my baby!”)In similar seize-the-moment thinking, Roswell acquired

Overhead Doors of Southeast New Mexico in 1997—a too-good-to-pass-up opportunity that presented itself when theprior owner couldn’t make a profit at it. “Now it’s 14% ofour revenue,” Justin has won the right to brag.Then there’s RLC Supply & Logistics, another of

Justin’s newly birthed offspring. “It’s a brand-new compa-ny with one employee.” (Guess who?) He’s got big plans for the fledgling venture. “We’ll relo-

cate operations here in Roswell to serve the agricultural andoil and gas industries of Eastern New Mexico. It will allowus to hold inventory for the stores.” A new railroad spur forwhich he lobbied long and strong will speed this along. “Bynext year, we’ll develop a two-step business with vendorpartners to distribute products—but not,” he’s quick tostress, “in competition with our builders. I’ve seen that hap-pen, and we definitely don’t want to do the same.”Meanwhile—does this guy ever sleep?—Justin has laid

the ground work for what he deems a necessary change inmanagement style in the two stores. “I’m building the infra-structure so that the GMs will run each store as an indepen-dent business—make it their own. Formerly,” he says,“they sort of acted as supervisors but were not focused onP&Ls. It’s a mindset change, and my job is to help them—retrain them without finger-pointing or pulling hair—tofocus more on product. I’ll give them the tools for what’sexpected,” he promises.Backing all this change in the company’s rebranding is a

new marketing strategy that’s also (surprise) Justin’s

domain. “I’m turning our focus to radio advertising, toreach the pro who’s in his truck with the station on all day,”he explains. “But print, too: focusing on key categories,such as competitive pricing, building front-of-mind aware-ness, especially with our (loss-leading) power tools: threeaisles of power tools to drive traffic, but then six aislesbehind them.”A walk in the park, then? Not with heavy competition in

the form of boxes, regional chains, and other independents.How does Builders claim to better all those boys? Well, “the answer depends on the customer, and the cat-

egory,” Justin wisely explains. “We adapt to the customer’sneeds. For the one-stepper, we stress the highest level ofservice. For the roofer, our inventory is our strong point—20 colors versus 10 elsewhere. More options. And,” headds, “I need to serve you— with competitive prices, ser-vice no one can match, and the quality and variety of mate-rials absolutely unmatched.” (Remember that old three-legged stool adage? So does Justin. But today, he says,“two out of three will no longer do it. Try for all three.”And here’s another maxim for which he walks the talk:

don’t be satisfied with the status quo. “If we had not movedfrom the custom builder, our future would look completelydifferent”—and pretty cloudy. “I’m a‘lead’ guy,” he restates. “Here, we’reperformance-driven. We like towin, and that’s why people like towork for us. Bruce, as president, isthe financial guy; he’s also hands-on, day to day. I undertake every-thing top-line—marketing andadvertising. l oversee sales. Ideal with the customers. AndI’m optimistic.”

Carla [email protected]


move on, and frittering away at the edgesof an account that has cut us loose willjust delay our developing new accounts.

Action!Important customers take time. They

are also emotionally and mentallydemanding. The good news is now we canapply our mind, time and emotion todeveloping new business. And we can. We are the ones who

found, landed and developed that bigaccount we just lost, remember? Thatmeans we already know how to do it. Wedidn’t get lucky. So let’s get to it.• First, we put the full-court-press on

our ongoing account base. Go back and re-prospect everyaccount we are currently working and see if there is any-thing we have missed or any other value we can bring.• Second, we network with all our current accounts,

suppliers and friends to find new business.• Third, we commit to prospecting and do it every day.

No Comfort for UsHumans like stability. Knowing what is going to happen

is comforting. Marketing is built on it. Once people start tobuy from or shop in a certain place, they are likely to con-tinue to shop in that place.That is not the life of a salesperson (or sales organiza-

tions). Individually or as a company, if we make a list ofour top ten customers five years ago we will see that veryfew of them make our top ten list today. The same willhold true five years in the future. It is sad to think that thecustomers we are so tight with today probably (again, wefight it with all we have, but…) won’tbe our best customers in the future. We must realize that in reality

we are The Big One in our salescareers. We must remember that wemake accounts, they don’t makeus. Losing the Big One hurts,but it is just a test of our com-mitment to ourselves and ourcareers in sales.

OLSEN On SalesBy James Olsen

James OlsenReality Sales Training

(503) [email protected]

WHETHER IT HAPPENS slowly(“Everything is fine, we’re just

slowing down a little”) or out of the blue(“We’ve decided to go another way”), los-ing an important account is a painful bodyblow to any salesperson. Elizabeth Kübler-Ross wrote On Death

and Dying in 1969, which gives the fivestages of grief we go through when weexperience a loss. The book was inspiredby her dying parents. The five stages areoften applied to the grieving process indying, but can be applied to any kind ofloss, be it a break-up, divorce or losing animportant account.The five stages are:• Denial. I can’t believe this is happening to me!• Anger. @%$!, this can’t be happening to me!• Bargaining. There must be something I can do!?• Depression. All is lost.• Acceptance. Okay, it’s happened. Now what?

Remember the FeelingAcceptance is important, but as professional salespeople

we must hang on to the feeling of the body blow andremember that we never want to feel that way again. Howcan we avoid ever having this feeling again? By never let-ting ourselves be lulled into thinking we don’t have toprospect.We must realize that no matter how well things are

going, we are always in “rainy-day” mode as salespeople.We are skeptical. We do not trust that (our current)accounts will stay with us forever. Of course, we bring ongoing value and work with our

accounts so that they do become lifetime customers, butwe always keep a little bit of ourselves working for thetime that they might not be. “Pray like only God can helpyou, but plant your garden.”

Self-AnalysisDenial kills sales careers. We need to spend some time

thinking about our role in the loss. Some accounts are lostthrough no fault of our own, but sometimes it is somethingwe have done or said that can be improved upon. If wedon’t learn from our failures, we will make the same mis-takes again.

She’s Dead to MeNow forget the account. Take them out of your account

box or Outlook file. Do not circle back with the buyer,even though they may be one of your friends. It is time to

Losing the big one


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WOW, WHAT A SUMMER. According to the NationalOceanic & Atmospheric Administration, July was

the hottest month ever recorded in the continental U.S.Two-thirds of the country is experiencing drought. Andthen there was the “super derecho” storm that wreakedhavoc across the Midwest and Mid-Atlantic. More than twomillion acres have burned and much of the West is still inits fire season. Add to this extensive crop damage and, allin all, it’s been a harsh summer.What will autumn bring? And winter? Perhaps property

owners are thinking the same thing. My hunch is that we’redue for an uptick of d-i-y projects. If so, what can dealersdo to prepare for what comes next?Certainly, preparations for extreme weather in areas

where it might be expected would be sensible. Big rainsand floods? Blizzards and ice storms? Or maybe this winterwill cut us a break and be calm and mild. That would benice. A little research can help you pick products so youcan merchandise them in time to help your customers pro-tect their property, whatever the weather has in store.But instead of focusing on the exterior, I’d like to turn

our attention to the interior. How can we help do-it-your-selfers, or rather green-it-yourselfers, undertake projectsthis fall to make their homes warm, cozy, and comfortablefor the winter months ahead?First, paint. This should be automatic, and presumably

plans are already underway to merchandise your core zero-VOC paint brands, and a few niche products, too. If you’restill looking for a dependable line with a strong designerbrand, Yolo Colorhouse (www.yolocolorhouse.com) is

GREEN RetailingBy Jay Tompt

worth evaluating. With people looking to simplify andprobably planning to spend less during the holidays, per-haps positioning a warm, new interior as a part of family-centered holiday could be an effective message strategy.Second, draft busting or weatherproofing. It’s not as

glamorous as adding a new designer color scheme to theliving room, but eliminating drafts can improve thermalcomfort in a home and save 10%-15% on heating require-ments. Most dealers already carry enough of the productand materials to develop an effective end cap or floor dis-play. Make sure expanding foam sealant and other caulksand sealants are zero-VOC and free of other chemicals ofconcern. Third, loft insulation. This is an easy weekend project

for an experienced homeowner or handyperson to take on.Energy savings can be substantial, as well as improvedthermal comfort winter and summer. It might be worthmaking those points in your promotions. Choose formalde-hyde-free batting or loose fill. Better, choose productsmade from natural materials, such as those from BondedLogic (www.bondedlogic.com).Fourth, windows. For homes with single pane windows,

there are limited options for improving thermal perfor-mance, short of replacement with double or triple pane win-dows. Replacement is expensive and may be well worth theinvestment if projected energy savings are significant. Butif outright replacement isn’t an option, there’s a new inno-vation that seems a perfect solution for homeowners. IndowWindows (www.indowwindows.com) has developed a win-dow insert that comes close to doubling the R-value of asingle pane window, and it reducesnoise, too. It may not be available inall areas of the country, yet, but it’sdefinitely worth a look.Turning each of these projects

into end caps or floor displays canboost sales and provide real value toyour customers. You’ll feel goodthat no matter what theweather has in store andhelped people feel a littlewarmer and safer, too.

Jay TomptManaging Partner

William Verde & Associates(415) 321-0848

[email protected]

Merchandising forthe green-it-yourselfer

INDOW WINDOW INSERT


Unfortunately, the myth that coaching is something wedo to others is propagated by a plethora of coaching booksand training programs that naively assert that leaders sim-ply need to engage in what really amounts to a series ofinterpersonal tricks designed to entice others into coachingconversations. State your intentions, express confidence inthe person, listen actively, provide balanced feedback, co-create an action plan… the list goes on. These are goodleadership practices, but they will not get us invited into thecoaching relationship.We don’t have to read the latest coaching best seller to

get this. We know this from our own experiences withthose who have been our own best coaches. When decidingif we will welcome someone as our coach, all we reallywant to know is the answer to three simple questions:1. Do you really care about me? (Are you committed to

my success?)2. Can I trust you? (Will you tell me the truth?)3. Do you have something of value for me? (Will you

share your best to help me become my best?)Great coaching often involves exposing our most trea-

sured aspirations, exploring the scary territory of unfulfilledexpectations, claiming all of the talents we have kept hid-den, owning up to the ways we are selling ourselves short,making bold new promises to ourselves, charting risky newcourses of action…these are not things we will do with justanyone. These are things we will only do with someonewho we believe truly cares about us, is trustworthy, and hassomething important to offer.Have you seen the light? Now the

hard part is figuring out what youcan do to engage with those youpreviously considered uncoachable.Here’s a suggestion: Make sure youhave a positive response to the threequestions above and then speak to eachof your “uncoachables,” let them knowyou would be honored to serve astheir coach, and ask them what youneed to do to earn the right to doso. This will likely be one of themost difficult things you willever do as a leader…and themost valuable!

MASTERING LeadershipBy Gregg Thompson

Gregg ThompsonBluepoint Leadership Development

(513) [email protected]

Coaching the uncoachableSADLY, WHEN SPEAKING on the topic of The Leader as

Coach, the first question I usually hear is not, “What’sthe most potent thing I can do to improve my effectivenessas a coach?” but rather, “What can I do with all the peopleon my team who are uncoachable?” The honest answer isone that most leaders don’t want to hear: “It’s not that theydon’t want coaching; they just don’t want coaching fromyou!“How do I know this to be true? I have asked the follow-

ing question of thousands of leaders: “If you were unknow-ingly doing something that was significantly impeding yourperformance, something that was turning off those aroundyou, something that would likely drive your career toward a

ditch, while someone that you really trusted and was com-pletely committed to your success knew about this, wouldyou want this person to come to you, privately, and sharethis information with you?” Virtually 100% of the audienceraises their hand every time.Think about how directly this parallels coaching. If the

vast majority of us would readily invite such tough-to-hearfeedback, why would we ever resist coaching? The answer:It’s not the coaching we resist. We are simply very pickyabout those we will welcome into something as profoundlypersonal as coaching.Coaching requires a special relationship and an extraor-

dinary conversation in which people explore ways they cancreate significant change in their work, careers or lives. Atits best, it can only be described as intimate. The idea thatsome people are uncoachable emanates from the myth thatcoaching is something we do to others. It’s not. It’s a pow-erful performance and career changing process that we dowith others. We may call ourselves coaches. We may offerourselves as coaches. We may encourage others to availthemselves of our coaching. But we can’t unilaterallyimpose ourselves on others as coaches. No matter howsenior we are, no matter how interpersonally skilled we are,no matter how experienced we are, we still have to earn theright to coach.










who restores old buildings for a liv-ing. He’s been a Mill Valley Lumbercustomer for 20 years, restoring hisown Victorian home with materialsfrom the firm.He plans to team up with outside

operators to handle the lumber andhardware operations. He will also rentout buildings on the property to otherhome improvement tradesmen, inaddition to the cabinet shop andkitchen designer already leasing spaceon site.

Restoration expert Matt Mathewshas purchased Mill Valley Lumber,Mill Valley, Ca., and vowed to con-tinue operating the 120-year-old busi-ness “the way it is.”Previous owners Tom, Dan and

Tony Cerri said the business had beenlosing money and were forced to putit up for sale (see July, page 18). Theyreceived several offers for the proper-ty, which is zoned for multifamilyresidential, although it’s been a lum-beryard since 1892.Mathews, 56, is a Mill Valley local

New Owner Rescues Mill Valley Lumber DEALER BriefsHealdsburg Lumber True

Value, Healdsburg, Ca., held a grandreopening Aug. 3-4 to celebrate itsextensive remodel.

Caruthers Lumber Co. ,Caruthers, Ca., has been placed up forsale.

Founded in 1910, the businessoperates from a 7,588-sq. ft. buildingwith 2,305-sq. ft. covered drive-thrustorage on 1.21 acres.

Orchard Supply Hardware,San Jose, Ca., opened a new 50,000-sq. ft. store Sept. 1 in Torrance, Ca.(Fabrizo Villalobos, store mgr.)

OSH also received planning com-mission approval to add a 40,000-sq. ft.nursery to the front of its store inSonora, Ca.

DeCou Lumber, Atascadero,Ca., has closed its doors after 75 yearsof business.

Lowe’s held an Aug. 16 grandopening for its new store inSilverthorne, Co. (Doug Cousino, storemgr.).

Dunn Lumber, Seattle, Wa., isnow stocking a ful l l ine of MazeNails’ Made-in-the-U.S.A. specialtynails at its 10 stores.

Habitat for Humanity is relo-cating its 2,000-sq. ft. Restore dis-count LBM outlet in Breckenridge, Co.,to a 4,000-sq. ft. building inSilverthorne, Co.

On Aug. 18, Habitat held a grandopening for its new ReStore in SantaCruz, Ca. (Mark Burden and MoniqueBourin, co-mgrs.). The space is 6,000sq. ft., with room to expand to 17,000sq. ft.

Anniversaries: White BrothersMill , Oakland, Ca., 140th …Bauman’s Ace Hardware ,Riverside, Ca., 105th … JamesHardware, La Habra, Ca., 65th …Keene’s Hardware, Oxnard, Ca.,50th … M&S Building Supply &Home Center, Monterey, Ca., 50th… Bayside Building Materials,San Mateo, Ca., 45th … ReddingLumber Transport, Redding, Ca.,40th …


SUPPLIER Briefs

SOUTHERN CALIFORNIA Hoo-Hoo Club members Mike Nicholson andDavid Tait presented a check for $10,000 to the City of Hope and theWounded Warrior Project during the group’s Aug. 15 meeting in SanDimas, Ca. The donation represents the proceeds from the DonGregson Memorial Tournament in May. During the meeting, which wasattended by international Hoo-Hoo president Ron Gattone fromAustralia, the club inducted four new members: John Assman, RoseburgForest Products; Dallas Schooner, PrimeSource; John Pasqualetto,Jones Wholesale, and Sergio Tellias, Nichols Lumber.

Hardwoods Inc. will reopen a branch in Sacramento,Ca., this fall.

Johns Manville, Denver, Co., has purchased theentirety of Industrial Insulation Group, Brunswick, Ga.,from its joint venture partner The Calsilite Group.

Weyerhaeuser auctioned off its shuttered mill site inDallas, Or., and EWP plant in Chavies, Ky.

The sales included land, buildings, and equipment.

Columbia Forest Products, Greensboro, N.C., willinvest $9 million upgrading its Boardman, Or., sawmill to sup-ply core veneer cross-bands to its plywood mill in KlamathFalls, Or. (see Aug., p. 23).

Quality Cabinet & Fixture Co., San Diego, Ca., andits majority owned subsidiary, Quality Cabinets deMexico S. de R.L. de C.V., have been acquired byGlenn Rieder Inc., Milwaukee, Wi.

Wholesale Wood Products, Dothan, Al., is now dis-tributing redwood products from Redwood Empire,Cloverdale, Ca., to dealers in Tennessee, Mississippi,Alabama, Georgia and Florida.

BlueLinx renewed its Forest StewardshipCouncil chain-of-custody certification for another 10 yearsfrom the Rainforest Alliance. The distributor has beenFSC certified since 2007.

Waldun Forest Products’ western red cedar mill inRuskin, B.C., was destroyed by an early morning fire Aug. 26.

The cause is under investigation.


MOVERS & Shakers Paul Walters, ex-Lifetime Lumber, isnow Northern California territorymgr. for IKO Industries. He isbased in Auburn, Ca.

Brian Jones has returned to the salesteam at D.R. Johnson Lumber,Riddle, Or.

Shawn Nolan is now plant mgr. atPacific States Treating, Weed, Ca.

Deirdre Dawson has been namedv.p./associate general counsel atOrchard Supply Hardware, SanJose, Ca.

D.J. Donaldson, ex-Home Depot, hasjoined the outside sales force atProBuild, Littleton, Co.

Josh Slingerland, ex-Quikrete, is nowhandling outside sales in northernUtah for PrimeSource BuildingProducts, Salt Lake City, Ut.

Mark Kollias is a new nationalaccounts rep for James HardieBuilding Products, Seattle, Wa.

Tim Case, ex-OneStop Windows &Doors, has joined Plygem BuildingProducts, as territory sales rep forthe San Diego, Ca., area.

Joe Cartier is new to sales at Window& Door Store, Prescott, Az.

Gary Lane has been named directorof product development for Prime-Line Products, Redlands, Ca.

Garry Tabor, ex-Heico, has beennamed executive v.p. of AssociatedBuilding Material Distributors Inc.,Portland, Or. He is based in ElDorado Hills, Ca.

Alicia Beltran is new to the salesteam at Yakama Forest Products,White Swan, Wa.

Mark Wiseman, ex-BlueLinx, hasjoined Huttig Building Products,Seattle, Wa., as territory mgr.

Bill Jacobs, ex-Foxworth-Galbraith,has returned to Weyerhaeuser,Denver, Co., in commercial sales.Blake Laidlaw is now businesslogistics mgr. in Federal Way,Wa.

Jay Bishop, ex-OrePac, is new topanel sales at Taiga BuildingProducts, Rocklin, Ca.

Bill Fitzgerald, ex-Austin Hard-woods, is now selling for PetermanLumber, Fontana, Ca.

Jose Ortiz, ex-BlueLinx, has rejoinedFoxworth-Galbraith Lumber, asregional v.p. for the Las Cruces,N.M., area.

David Miles, ex-Coos Head ForestProducts, has joined Conrad ForestProducts, North Bend, Or.

Jim Basler, western regional mgr.,Osmose Inc., Woodland, Wa., hasretired after 35 years with the com-pany.

Darin Coder, ex-ProBuild, has beennamed chief financial officer forOrepac Building Products,Wilsonville, Or. Tom Rood, ex-Moulding & Millwork, is a newOrepac account mgr. in Aurora, Co.

Ben Philan, ex-International WoodProducts, and Geoff Richter, ex-TrusJoist Commercial, are new tosales at Capital Lumber, Portland,Or.

Mike Catalino has resigned fromFoxworth-Galbraith Lumber, LasCruces, N.M., to join BMHC/BMCWest, as market mgr. for the ElPaso, Tx., area.

Dan Hutchison has been named v.p.-operations, wood products at BoiseCascade, Boise, Id., where he willalso have responsibility for theInland region. Denny Huston isnow v.p.-sales & marketing, engi-neered wood products, and JohnSahlberg is senior v.p.-humanresources and general counsel.


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Derek Thorson, ex-Lowe’s, is a newnational accounts outside sales repfor American Building Supply,Phoenix, Az.

Phil Rousculp, ex-Fenestra Window& Door, has joined the sales teamat Dimensional Millwork ofArizona, Mesa, Az.

John Greiwe has joined DeceuninckNorth America, Monroe, Oh., asdirector-commercial marketsdevelopment.

Roy Smith, ex-Warehouse Solutions,has been appointed material han-dling sales mgr. for HawthorneLift, Fontana, Ca.

Rick Eng has been named v.p.-finance & chief financial officerfor Ainsworth Lumber Co. Ltd.,Vancouver, B.C.

Don Demons has been promoted topresident of Western ForestProducts, Vancouver, B.C.

Keith Mullens is the new sales mgr.at Wynndel Lumber Sales,Wynndel, B.C.

James S. Andrasick, ex-MatsonNavigation, has been elected to theboard of Simpson Strong-Tie par-ent Simpson Manufacturing Co.,Pleasanton, Ca.

Tom Lindquist, chief operating offi-cer, Plum Creek, Seattle, Wa., hasbeen appointed to the AmericanForest Foundation’s board oftrustees.

Lou Pole has been named director ofthe legal department at Mungus-Fungus Forest Products, Climax,Nv., according to co-owners HughMungus and Freddy Fungus.

OLD TIME LUMBERMEN’S BBQ Aug. 5 inHealdsburg, Ca., honored Lumber Person ofthe Year Bruce Burton (right), co-owner, WillitsRedwood, Willits, Ca. Roger Burch (left), presi-dent of Redwood Empire, Cloverdale, Ca., pre-sented the award.


their orders, and have their selectionsshipped directly to them—all withouthaving to pick up the phone or send afax.“The idea is for the independent

contractor that’s out in Wisconsin onthe jobsite, trying to find studs, fram-ing, siding, or flooring, to get onlineon his laptop or smartphone, checkout our inventory, read a productreview, and place an order,” saidFernandez. “With just a few clicks hecan get it shipped directly to the job-site.”Fernandez foresees a time when

most of the company’s customers willshop and order online. “The onlinestore isn’t a big business right now,but it’s growing and customers areresponding very favorably to it,” hesaid. “We expect business to growfurther this year as we roll out ourYou Click, We Ship It campaign.”

FSC Expands OperationsThe Forest Stewardship Council

will host its first annual southeastregional conference on Oct. 24 atHome Depot’s corporate headquartersin Atlanta, Ga. Attendees will include regional

California legislators are consider-ing a bill that would impose a 1% taxon all lumber sold in California, gen-erating about $30 million annually fora new Timber Regulation and ForestRestoration Fund.Some timber firms support

Assembly Bill 1492 because it wouldshift the costs of regulatory fees theycurrently pay to consumers and wouldlimit wildfire liability damages incases occurring after passage of thebill.However, the Lumber Association

of California & Nevada is against theproposed legislation, arguing:(1) There is no valid data on the

amount of tax to be collected. Thestate cannot determine the amount oftax to be collected because it has nofigures on the amount of lumber soldin the state.(2) There is no valid data on the

actual costs of the various state agen-cies involved in monitoring andreviewing timber harvest plans. Theclaimed costs of the various stateagencies involved are unsubstantiated

and must be independently verified.(3) The costs to implement an

additional sales tax on selected itemshas not been considered or analyzed.Nor have the technical challenges ofreconfiguring computer systems toaccess the tax been considered.

Northern California DealerWorks to Sell Lumber Online Ukiah, Ca.-based reclaimed woods

specialist North Cal Wood Productshas launched a new online lumberstore, www.youclickitweshipit.com,as well as a national marketing cam-paign to educate consumers on theadvantages of shopping online forlumber products.

“It’s an online world and we haveto be able to serve customers on theirterms,” said Tony Fernandez, directorof sales and operations. “In manycases, that means being able to pro-vide full service online.”The new website allows homeown-

ers, contractors, and other clients tobrowse the company’s wood productsonline, select their preferences, place

California Floats Lumber Tax


stakeholders who will address oppor-tunities and challenges in building themarketplace for FSC-certified prod-ucts in the Southeast. At its headquarters in Minneapolis,

Mn., FSC-US welcomed Karin Meieras development manager and AmeliaHarris as a program manager. Effective Oct. 1, Kim Carstensen

will be director general of the organi-zation’s international board of direc-tors, succeeding Andre de Freitas, whohas led FSC International for the pastfive years. Carstensen previouslyserved 20 years with the WorldWildlife Fund.

Idaho Forest Group toExpand Chilco OperationsIdaho Forest Group, Coeur

d’Alene, Id., received permission fromKootenai County commissioners toexpand its milling operations in Athol,Id., which process logs from NorthIdaho and Washington.IFG will expand the 251.6-acre site

by another 46.5 acres to gain space foradditional lumber storage. The compa-ny also plans to construct a 130-ft.portal crane and create separate spacesfor truck scales, truck tarping, andturnaround space that will relieve traf-fic congestion in the yard. To mitigate noise concerns, a vege-

tative buffer will be installed on top ofan existing berm. “It’s weighing build-ing economic prosperity versus theneeds of local residents,” said com-missioner Dan Green of the proposedplans.

Alaska Mill Adds ShowroomIcy Straits Lumber & Milling Co.,

Hoonah, Ak., opened a new show-room in Juneau, Ak., this summer, toshowcase the company’s custom prod-ucts made from wood harvested fromthe Tongass National Forest. “A foothold in Juneau should open

up new markets to us,” said ownerWes Tyler, who purchased the compa-ny with his wife, Susan, in 2003.“People will get to see the productsand get to know what we can offer.” Currently, the showroom is open by

appointment only, but Tyler hopes toeventually to have it staffed duringregular business hours. The showroomis stocked with samples of beams,crown moulding, decking, siding, pan-eling, chairs, tables and mantles madefrom Sitka spruce, Alaska yellowcedar, western red cedar, and westernhemlock. Complete home and cabinpackages are available.


LOS ANGELES Hardwood Lumber-man’s Club enjoyed its second barbe-cue of the summer, this time Aug. 11at the Yorba Linda, Ca., home of Jimand Tracy Gaither, Specialized Milling,Fontana, Ca. [1] Jim & Tracy Gaither,Dayna & Alan Arbiso. [2 ] Carl &Anellina Henoch, Dale Bohannon. [3]Walter & Joyce Ralston, Kit Rohm,Dan Bohannon. [4] Charley Bohnhoff,Dian & Walt Maas. [5] Randy & MartyPorter, Kevin Tranter.

Photos by Walter RalstonLA HARDWOODS

Genesee & Wyoming, Greenwich,Ct., agreed to acquire RailAmerica,Jacksonville, Fl., for $1.39 billion,combining North America’s twolargest short-line and regional railoperators.

When the deal closes in the fourthquarter, GWI will operate 108 rail-roads covering over 12,000 miles oftrack in 37 states, plus Canada, theNetherlands, Australia and Belgium.“The acquisition of RailAmerica

by GWI is a straightforward combina-tion of two organizations with over-lapping holding company structuresand complementary railroad geogra-phies,” said GWI c.e.o. JackHellmann. “The synergies betweenthe companies are expected to be sig-nificant.”

Merger on Track for Short-Line Railroads


Malheur To Close SawmillMalheur Lumber Co., John Day,

Or., has announced that it will shutdown its sawmill and related depart-ments Nov. 1 after 75 years of contin-uous operation. The biomass facility—including

pellet and wood brick manufacturing,chipper and log shaver—will continueto operate. “We regret this action, but find we

can no longer sustain our sawmill andplaning operations without sufficientlocal timber from adjacent nationalforests,” said Bruce Daucsavage,president of parent Ochoco Lumber,Prineville, Or. “We are infinitely sad-dened and frustrated by the circum-stances that bring us to this decision.”

Setzer Refocuses on MDFSetzer Forest Products has moth-

balled its pine moulding facility inOroville, Ca., while increasing pro-duction by one-third at its MDFmoulding plant in Sacramento, Ca.Setzer stopped accepting orders for

pine mouldings August 15.Setzer has been producing mill-

work and other wood products since1927.

Depot Adds Western SupportCenter for Online Sales Home Depot has opened a cus-

tomer service and sales center inOgden, Ut., to support its online busi-ness in the West.The 85,000-sq. ft. center currently

employs more than 200, but intends togrow to nearly 700 employees by2015.A typical Home Depot stocks

30,000 to 40,000 products. Onlinecustomers have access to 300,000products.Previously, the retailer’s only

online customer service center wasnear its Atlanta, Ga., headquarters.“The Ogden center will help us

expand that customer support, notonly with more people, but also give aWest Coast presence in that timezone,” said spokesman StephenHolmes.

Bankruptcy Filing ProtectsTwo Yards from Foreclosure SFRP Group LLC—the company

that leases the land to AstoriaBuilders Supply Co., Astoria, Or., andGearhart Builders Supply Co.,Gearhart, Or.—has filed to reorganizeunder Chapter 11 bankruptcy protec-tion, averting foreclosure on the two

properties.SFRP is owned by Randy and

Deborah Stemper, who also operatethe two building supply yards.

Fire Levels Maryʼs River MillMary’s River Lumber, Corvallis,

Or., lost its Montesano, Wa., sawmillin an Aug. 25 fire. The planer, moulder, kilns, and

inventory were not damaged, but thebuilding was a complete loss.“It’s an absolutely sick feeling—

this is a big part of our lives,” saidgeneral manager Terry Smith. “Wespend a lot of time here. It’s virtually

watching part of your home burn.”Firefighters managed to keep the

fire confined to the sawmill building,leaving other portions of the opera-tion—including the shipping depart-ment—untouched. “We’ll figure itout, and we’ll go on and we’ll fix it,”said Smith. In the meantime, the loss of pro-

duction will be made up at the compa-ny’s other locations in Elma, Wa., andPhilomath, Or. Established in 1974,Mary’s River specializes in westernred cedar. No injuries were reported in the

blaze.


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Demand for fencing in the U.S. isforecast to grow 7.1% annually to $8.3billion in 2016, totaling 835 millionlinear ft., according to a new study byFreedonia Group.Growth will be driven by an

expected rebound in building con-struction from a depressed 2011 base.In addition, advances will be support-ed by rising use of high-value fencingmaterials, such as ornamental metaland plastic and composite lumber.Consumers will opt for these materials

because of their favorable aestheticqualities and performance properties.The residential market accounted

for the largest share of fencingdemand in 2011 and will remain themarket leader in 2016. Demand forfencing in residential building con-struction applications is forecast toincrease at an above-average pacethrough 2016, fueled by a rebound inhousing completions. Further growthwill be supported by the large residen-tial replacement segment, which will

benefit from a recovery in improve-ment and repair spending.Nonresidential fencing demand will

see strong gains through 2016.Increasing nonresidential buildingconstruction—particularly in theoffice and commercial segment—willstimulate demand. Fences are ofteninstalled around nonresidential struc-tures to provide security barriers andto demarcate property lines. Fencing demand in the nonbuilding

and agricultural markets will rise mod-estly through 2016. Gains will bemoderated by the prevalence of low-cost materials, such as wood and metalwire, in these markets.Among fencing materials, plastic

and composite lumber is expected tosee the most rapid growth in demandthrough 2016. Plastic and compositematerials often resemble natural wood,but have minimal maintenance needsand longer lifespans than wood fenc-ing. Plastic and composite lumber isalso promoted as being “green”because it is often made from recycledmaterials, such as reclaimed plasticsand wood scraps. In 2011, metal fencing accounted

for the largest share of the fencingmarket in both dollar value and linearft. Chain link fencing is often used tomark boundaries and secure proper-ties, while ornamental metal fencing iserected around houses and businessesto form an aesthetically pleasing barri-er. Demand for metal fencing willincrease in line with the industry aver-age through 2016, with ornamentalfencing fortifying gains. In addition tothe rebound in housing activity, somebusiness owners will opt for ornamen-tal fencing to serve as an aestheticallypleasing alternative to chain link andwire fencing. Wood fencing demand will

advance at a below-average pace

Fencing Demand Growing 7.1% Per Year


through 2016. Wood is most often uti-lized in the residential market becauseof its low cost and favorable aesthet-ics. However, demand for wood fenc-ing will be checked by competitionfrom plastic and composite fencing. Concrete and other fencing materi-

als will see solid gains through 2016.Demand for concrete fences will besupported by strong interest in con-crete and other materials for use inprivacy fences. Moreover, concretefencing offers a high degree of protec-tion from damages caused by impactsand explosives.

Barr Down to Last YardBarr Lumber, San Bernardino, Ca.,

has closed its stores in West Covinaand Yucca Valley, Ca., reducing thechain to a single yard in TwentyninePalms, Ca.Kyle Nicholson, a professional liq-

uidator who helped empty the YuccaValley store at the end of August, saidthe Twentynine Palms branch benefitsfrom being close to a Marine Corpsbase, but far from big box competi-tion. “Being isolated is sometimes agood thing,” Nicholson said. “We’rein the process of keeping the Barrname going and the one store going.”Barr purchased the West Covina

yard from Pick’s Building Materialsin 2008.

Depot Closes Oldest Store inWest, Readies ReplacementIn Fullerton, Ca., Home Depot

closed the oldest store in its westerndivision, liquidated all the old mer-chandise, and will open in a newbuilding, with new merchandise, justdown the street.Mike Astorino, district manager

for Home Depot, said the goal was togive Fullerton a brand new store—theold one was 27 years old. At 150,000 sq. ft., the new store is

about 20,000 sq. ft. smaller than theold store, but will have a larger lawnand garden section, plus an expandedappliance showroom with a widerselection of merchandise. “We are always looking for ways

to improve the shopping experiencefor customers,” said Craig Menear,executive vice president for merchan-dising for Home Depot. The old store closed Aug. 22; the

new one is to open Oct. 23.Earlier this year, Depot opened its

first western region superstore inAnaheim Hills, Ca., its 205,000 sq. ft.packed with wider selection in all cat-

egories, more “lifestyle vignettes” toillustrate design and decorating ideas,and upgraded customer service areasfor both consumers and homeimprovement professionals.

Siding, Trim to Post Big GainsDemand for residential siding and

trim will reach $9.1 billion by 2014from $7.2 billion in 2011, accordingto a new study by Principia.Siding demand will increase 7%

from 58 million squares valued at$5.8 billion in 2011 to 71.6 millionsquares with a factory gate value of$7.2 billion in 2014, based on project-

ed unit shipments. Exterior trim will increase 10%

from 1.7 million linear ft. in 2011 to2.3 million linear ft. in 2014.“The residential siding and trim

market is expected to see steadygrowth over the next few years due tothe increasing need for re-siding andrepair along with increased activity innew construction,” said KenJacobson, partner at Principia.“Manufacturers are improving exist-ing products so that they are morecost effective, easier to install, andalign with existing and upcomingcodes and standards.”


at every stage. Many of these experts are the same

attorneys, accountants, family busi-ness consultants, financial planners,and others who may already adviseyou and your company. Many of theactions required by financial planningfor succession are ones that youshould be doing already, even if todaysuccession seems to be no more thana fuzzy image on a far horizon.

Set a specific goal.At the top of the “to do” list is to

get straight about the purpose of thebusiness with regard to the family andsuccession. Deciding whether youhope to provide lifetime employmentfor as many family members as possi-ble, maximize profits to uninvolvedfamily shareholders, or pursue someother goal is essential to charting asmooth course. What your goals are is not as

important as selecting them throughdiscussions with other family andbusiness members, and communicat-ing them to all interested parties.Remember, people will tend to sup-port what they help to create.You’ll likely find some difference

in the goals of the current businessleadership and the next-generationheirs. For instance, the current c.e.o.may want to allocate significantmoney to invest in a new venture or

FAMILY BusinessBy James Olan Hutcheson

OVER THE NEXT 20 years, nearly$4.8 trillion of wealth is set to be

transferred to the next generation ofheirs. Much of that wealth will consistof the assets of family businesses,about 40% of which are due to handthe reins to the next generation duringthe current decade alone.However, most family businesses

are not adequately prepared to handlethis tidal-wave transfer of wealth. Infact, the majority of family businesseshave made few or no provisions forturning the business over to the nextgeneration.In one sense, that’s not surprising.

Few vibrant and active family leadersfind it easy to envision their ownretirement or, worse, demise. Anotherproblem is that the challenges of fam-ily-business succession tend to beexceedingly thorny. It’s relativelyeasy for business leaders to accepttheir impermanence to the extent ofpurchasing a life insurance policy. It’smuch more difficult to engage in thesort of personal soul-searching, fami-ly dialogue, and complex financialplanning required to really prepare forsuccession.The job, however, can be done.

Millions of family businesses havesuccessfully transitioned ownershipfrom one generation to the next andthe journey is well worn, with proventechniques and experts ready to help

A transfertsunami


buy new equipment, while the heirsmay believe that available fundsshould funnel to shareholders. Even ifboth generation’s plans are identical,now is the time to get the agendas outin the open and make sure you’re allsailing in the same direction.

Get a professional valuation of your business.The techniques for planning a

transfer are many, sometimes compli-cated, and often only applicable tocertain specific situations. However,all planning will call for an accurateand current valuation of the familybusiness to move forward. One ofyour first moves should be to get avaluation of the enterprise by an expe-rienced business appraiser with goodcredentials.

Determine how to pay estate taxes.Once the value of the family enter-

prise is documented, you can addressspecific methods for minimizing thetrauma of transfer. One issue that will, no doubt, sur-

face immediately is to find a way topay estate taxes. The current unifiedtax credit allows for you to pass on $5million in assets to heirs without pay-ing tax. Transferring any business val-ued at more than the allowance willlikely trigger a graduated federal taxthat can prove debilitating.It’s a nice problem to have, but

dealing with estates over the $5 mil-lion allowance can sometimes be sur-prisingly simple, if planned for prop-erly. For instance, you may be able tomerely defer the payment of anyestate taxes for up to 14 years, payinginterest to the Internal RevenueService periodically and avoiding thekind of lump-sum payment that islikely to exceed any business’ abilityto pay. Buy/sell agreements funded with

life insurance offer another possibili-ty. You’ll need to work with a certi-fied public accountant to come upwith your own customized strategy.

Plan for retirement now.One common error is for the cur-

rent leader to neglect to provide foradequate income and financial securi-ty during his or her own retirement.This may result in the c.e.o. beingforced to continue working for thebusiness long after he or she is effec-tive, just to draw a salary. Setting up aretirement savings plan and trimming

pre- and post-retirement lifestyleexpenses are two ways to overcomethis common obstacle.Succession is accurately described

as the most important event in the lifeof a family business, as it is for thefamily in the business. Financial plan-ning, however, is not the only hurdle. You must also prepare future lead-

ers with training, experience, andexposure to life at the top. No planthat attempts to anticipate the future isperfect. Tax laws change, humanfrailty shows itself, and every busi-ness transfer presents unique risks.But simply attempting in good faithand due diligence to plan for a trans-fer will go a long way toward improv-ing the outcome.

– James Olan Hutcheson is managingpartner and founder of ReGenerationPartners, a family business consultingfirm headquartered in Dallas, Tx. He canbe reached at (800) 406-1112 orwww.regeneration-partners.com.

Reprinted with permission ofReGeneration Partners. No portion of thisarticle may be reproduced without its per-mission.

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As China’s economy slows, lum-ber and plywood mills in the North-west should have access to more tim-ber at reasonable prices.According to Wood Resource

Quarterly, China reduced log imports

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sawlog imports. In addition, mills have been able to

charge more for finished lumber andplywood because building has pickedup in the past three months. However,mill operators are still hesitant to addshifts and hire more workers, becausethey aren’t sure if the improved logsupply is a blip or a long-term trend. Log exports from the U.S. are con-

troversial because logs from publiclands can’t be legally exported. How-ever, private timber firms increasinglyshipped raw logs overseas when theU.S. housing market crashed and lum-ber demand decreased domestically.

Timberland Owner to MovePope Resources has sold its

10,000-sq. ft. headquarters building inPoulsbo, Wa., to a supermarket chainfor $2.9 million. The timberland manager will relo-

cate into a nearby 30,000-sq. ft. officeit acquired last year.

Jewett Cameron BuyingQuarter of Remaining StockJewett-Cameron Trading Co.,

North Plains, Or., plans to repurchaseup to 400,000 common shares of itsstock—representing about 26% of its1.6 million outstanding shares. Over the last two years, the LBM

distributor has repurchased 823,006shares under prior repurchase plans.

Ex-Worker Busted for TheftA former employee of Rocky

Mountain Lumber, Hamilton, Mt., hasbeen arrested on suspicion of stealingnearly $43,000 worth of lumber fromthe company.If convicted, James Jumper, 49,

faces up to 10 years in jail and a fineof up to $50,000. According to court documents, a

purchasing manager discovered alarge amount of building materialswere unaccounted for and later report-edly overheard Jumper talking to aco-worker about a building project athis home. A trip to Jumper’s house revealed

a large quantity of lumber wrappedwith the company’s name. Jumperallegedly asked the manager aboutreturning the wood, and the manageragreed to give him one week to do so.However, when a detective later

went to Jumper’s house, he allegedlysaid he had purchased the lumberfrom two other companies, althoughhis receipts purportedly did not matchup with the lumber.

Chinaʼs Downturn Benefits Northwest Mills


UMPQUA VALLEY LUMBER Association hosted its annual banquetand golf tournament Aug. 2-3 at Seven Feathers Casino & Resort,Canyonville, Or. [1] Karen Hess, Rick Troxel. [2] Beverly & Bob Shook,Jeff Ostrom. [3] John Duffey, Rob & Kelly Brown. [4] Gary Pittman, JimMcMenamin. [5] Rex Klopfer, Scott Swanson, David Abbott. [6] KrisLewis, Tim Beaudoin, Lisa Rappe. [7] Frank & Nancy Daniels, KrisLamke, Terri Collins. [8] Lee Greene, Greg Pittman. [9] Ed Miller, Robert

Ewing. [10] Bob & Fran Maurer. [11] Bryan Payne, Stancy & KevinDaugherty. [12] Grant Phillips, Kevin Dodds, Joe LaBerge. [13] Regina& Frank Peterson, Maria & Larry Mussallem. [14] Chuck Danskey, SteveKillgore. [15] Pam Elling, James Workman. [16] Jerry Ensworth, SteveLoebner. [17] Mike Foster, Jim Adams. [18] Alice Briggs, Tim Hunt. [19]Ted Holland, Ted Stock.

(More photos on next two pages)

UVLA

Photos by The Merchant


UMPQUA MILL WEEK (continued from previous page): [1] JohnMurphy, Art Reid, Brian Jackson, Matt Kolar. [2] Brian Johnson, PetarStoyanov, Valerie Johnson. [3] Jim Weber, Jerry Long, Bert McKee, JimMcMenamin. [4] Ron & Joni Hanson. [5] Brad Myers, Beth Hager. [6]Jim Frank, John Strader, Randy Wiles. [7] Danny Osborne, Fred Sutton.[8] Sal Camarda, Bill Young. [9] Terry Johnson, Tanya Joyner, Kevin

Caughron, Mary & Jason Jacobson. [10] Bill Hetland, Brenda Lovell,John Redfield. [11] Joe Jameson, J.T. Taylor, Charity McSperitt, RonLiebelt, Dustin Heusser, Kelli & Jeff Johnson. [12] Dana & Tod Kintz.[13] Sarah Krauss, Debra & Steve Swanson, Chris & Crystal Swanson,April & Matt Campbell. [14] Dick & Dixie Tibbets.

(More photos on next page)

Photos by The Merchant MagazineUVLA

MORE UMPQUA Valley Lumber AssociationMil l Week (continued from previous twopages): [1] David Franklin, John Bullion, MattFullerton. [2] Mickey Brown, Mike McCollum.[3] Kathy Lindsay, Chuck Casey. [4] JoeRobinson, Kurt Batey, Todd Lund, Ron Tiller.[5] Becky & Brian Jones. [6] Jim & PeggyThrone. [7] Don Hardwick, Rob Freres, JohnRotticci. [8] Brad Hatley, Katie & ThorYarbrough, Leslie Southwick. [9] Keshia &Ryan Owens. [10] Randy Johnson, KarenSlaughter, Steve Snyder. [11] Randy Gregory,Pat & Dave Wright.


UVLA

Photos by The Merchant

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Cascadia decking is made from a 100%renewable and sustainable North Americanresource unlike PVC and composite decking,which is largely made from non-renewablepetroleum products. Third-party life cycleanalysis clearly shows WRC decking as thebest environmental choice for decking: WRCsignificantly outperforms sustitute products inevery environmental measure.

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IN Memoriam

Richard Rendell Coale Jr., 54,sales manager for Huff Lumber Co.,Santa Fe Springs, Ca., died Aug. 5after a year-long battle withmelanoma cancer.He started his industry career in

the late 1970s with Rugg Lumber,Upland, Ca., moving to companiessuch as Mesa Forest Products, CostaMesa, Ca., and Stock BuildingSupply, Los Angeles, Ca., beforebeginning a second stint with Huff in2007.

Robert “Bob” Ransom, 91,retired co-owner of Ransom BrothersHardware & Lumber, Ramona, Ca.,died July 16 in Morro Bay, Ca.During World War II, Mr. Ransom

repaired fighter planes in the CarrierAircraft Service Unit.Afterwards, he returned to work in

the family business, which was startedby his father and uncle, Robert andStanley Ransom. He retired in 1985.

James E. “Jim” Duckworth, 69,purchasing manager for ForestProducts Sales, Murray, Ut., and sis-ter company Utah Wood Preserving,Woods Cross, Ut., died July 26.He joined Forest Products Sales in

1974 after 10 years with the U.S.Marine Corps. that included twoactive tours of duty in Vietnam.

Charles Maitland “Chuck”Simpson, 88, retired owner of BigSandy Lumber & Supply, Big Sandy,Mt., died Aug. 13 in Big Sandy.During World War II, he served as

a signalman in the Navy. Afterwards,he earned a bachelors degree in theforestry program at the University ofMontana.Mr. Simpson worked as a forester

in the redwood forests of California

before returning to Montana to workfor the Forest Service. He then wentto work at Big Sandy Lumber, whichhe later purchased.

Mildred Mary Crooks Holmes,93, retired co-founder of HolmesLumber, Scotts Valley, Ca., died Aug.9 in Lahaina, Maui, Hi.In 1947, she and her husband,

Lester, started a logging business inArcata, Ca. They later launchedHolmes Lumber, which her son,Larry, now operates.

Richard Douglas Willhite, 66,retired plant manager at BennettLumber, Elk City, Id., died July 31 inGrangeville, Id.During the Vietnam War, he

served as a radio technician with theAir Force. In 1973, he graduated fromColorado State University with adegree in forest management science. He then worked six years as a

forester for Southwest ForestIndustries, Cortez, Co. In 1976, hejoined Bennett Lumber as a forester inClarkston, Wa. In 2001, he becameplant manager of the Elk City mill,until it was sold in 2006. Before retir-ing in Sept. 2006, he served as plantmanager of the new mill inGrangeville.

Everette L. Vanskike, 95, retiredowner of Vanskike Hardware,Buckeye, Az., died June 29 inTuscon, Az.He and his wife, Erma Dell, started

the store in the late 1950s.

William “Jay” Hamilton, 87,retired 35-year employee at LumberProducts, Tualatin, Or., died Aug. 5 inPortland, Or.


ASSOCIATION Update

Del Monte Golf Course, a cocktailreception, and a president’s dinner.

Western Building MaterialAssociation is sponsoring webinars on“Gaining & Retaining ProfitableCustomers” Sept. 18 and a two-parteron “Yard Foreman Excellence” Nov.13 and 15.

National Hardwood LumberAssociation is partnering with LosAngeles Hardwood Lumberman’sClub to offer a bilingual lumber grad-ing short course Sept. 25-27 at GanahlLumber, Anaheim, Ca. Instructor is Tommy Dunson.

Western Wood PreserversInstitute will host its annual meetingNov. 4-7 at Grand Wailea Resort,Wailea, Maui, Hi.

North American WholesaleLumber Association will convene itsannual Traders Market Nov. 7-9 atHyatt Regency, Chicago, Il.Keynote speaker will be comedian

Greg Schwem. Bill Benjamin will pre-

sent a lunchtime program on“Emotional Intelligence and BeingYour Best When It Matters Most.”Russ Taylor will lead the MagellanNetwork breakfast program.

Association of Millwork Distri-butors will hold its annual conventionand tradeshow Oct. 8-12 at theKentucky International ConventionCenter, Louisville, Ky. Former NFL quarterback Tom

Flick will keynote. A business round-table will foster discussions on“What’s Keeping You Up at Night?”

North American Deck & RailingAssociation holds its annual meetingand national deck awards dinner Oct.10 at American Visionary ArtMuseum, Baltimore, Md.The event coincides with the start

of DeckExpo Oct. 10-12 at the Balti-more Convention Center.

APA-The Engineered WoodAssociation will host its annual meet-ing Nov. 9-13 at the Ritz Carlton,Amelia Island, Fl.

Lumber Association of Califor-nia & Nevada has adopted a newname, the West Coast Lumber &Building Material Association.Although the change has been

finalized, some materials and eventsmay take several months to reflect thenew name. Phone numbers, email,website and physical addresses remainthe same.The association’s board noted the

title LACN was too limiting both geo-graphically and product-wise.The new name will be in effect at

the group’s annual convention Oct.18-19 at Monterey Marriott,Monterey, Ca.Convention speakers include lum-

ber industry consultant Ruth Kellick-Grubbs, sharing how lumber dealersand suppliers are innovating and cap-turing new sales; Building SupplyChannel’s Greg Brooks, discussingwho’s winning and who’s not in theworld of LBM, and BuilderLink presi-dent Greg Stine, leading theTechnology Boot Camp, a presenta-tion of evolving technology.Social events will include golf at

3564 Hwy. 1, Davenport, CA 95017(831) 457-5024 • Fax 831-423-2800

www.big-creek.com • [email protected]

For highly experienced and personalized service contactFrank “Lud” McCrary, Janet McCrary Webb or Jim Busick

Big Creek Lumber Co. has a long history of practicingsuperior forest stewardship — growing, selectively harvesting and milling high quality California redwood.During our 63 years in the redwood business,

Big Creek has developed a reputation for being a reliable supplier of high quality lumber. We produce a wide range of grades and dimensions, custom cut timbers, pattern stock and fencing. Order full, mixed or partial truckloads.


CLASSIFIED Marketplace

Rates: $1.20 per word (25 word min.). Phone number counts as 1word, address as 6. Centered copy or headline, $9 per line. Border, $9.Private box, $15. Column inch rate: $55 if art furnished “camera-ready”(advertiser sets the type), $65 if we set type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more info, call (949) 852-

HELP WANTED

Is this your copy?Get your own every month.

Contact Heather at (949) 852-1990

TheMERCHANTMagazine

BUSINESS OPPORTUNITIESPATENTED TECHNOLOGY for Fencing,Decking, Posts: We are in search of partner orlicensee(s) to bring new encapsulated lumberprofiles to market. Technology provides abilityto make cost effective, structural wood compos-ites for decking/fencing/post applications.Barry, (508) 776-2647, [email protected].

REDWOOD EMPIRE Wholesale is a timberand manufactured based distributor of redwood,pressure treated, plywood and imported hard-wood such as Ipe and softwood lumber. Inaddition to our manufactured base products,Redwood Empire distributes high quality west-ern species fir and other softwoods as well assteel products. We are looking for highly moti-vated, well-rounded and experienced salespeo-ple for our locations in Morgan Hill andCarlsbad, Ca. Please send resumes to SeanBurch, [email protected].

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An Unfair Fight, HowWinners Sell and Sellers Winis a must for salespeople, salesmanagers and company ownerswho want to grow their sales inhypercompetitive markets.

Inspired by 55 of the best“Olsen on Sales” columns fromThe Merchant Magazine, thechapters range from specificsales techniques to how to hireand manage a sales force.

James Olsen is a 30-year lum-ber industry sales veteran—20years as a broker, 20 as salesconsultant. As principal ofReality Sales Training, his clientsboast an average +55% year-over-year sales growth over thelast 20 years. His loyal followingof lumber industry sales profes-sionals look forward to hismonthly column. He is passion-ate about sales; he lives andknows what he is writing about.

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Kick-start your2013 selling seasonGet the attention of

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Ensure your ad message reaches EVERY company attending the 22001122NNAAWWLLAA TTrraaddeerrss MMaarrkkeett by advertising in Traders’ Preview, a SpecialSupplement appearing with both The Merchant Magazine and BuildingProducts Digest.For one low price, you receive:• Full national distribution of your ad, packaged with the

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Call Chuck Caseyor Alan Oakes at 949.852.1990

1990. Make checks payable to Cutler Publishing. Deadline: 18th of pre-vious month.

To reply to ads with private box numbers, send correspondenceto box number shown, c/o The Merchant. Names of advertisers using abox number cannot be released.


DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

North American Wholesale Lumber Assn. – Sept. 10-13, woodbasics course, Corvallis, Or.; (800) 527-8258; www.nawla.org.

Construction Specifications Institute – Sept. 11-14, annual con-vention & show, Phoenix Convention Center, Phoenix, Az.; (800)689-2900; www.csinet.org.

Willamette Valley Hoo-Hoo Club – Sept. 12, trap shoot, Sports-man’s Club, Creswell, Or.; (541) 688-6675.

GlassBuild America – Sept. 12-14, Las Vegas Convention Center,Las Vegas, Nv.; (866) 342-5642; www.glassbuildamerica.com.

Jensen Distribution Services – Sept. 12-14, fall market, SpokaneConvention Center, Spokane, Wa.; (800) 234-1321;www.jensenonline.com.

National Hardwood Lumber Association – Sept. 12-15, annualconvention, Sheraton Hotel & Towers, Chicago, Il.; (800) 933-0318; www.nhla.org.

Timber Products Manufacturers Association – Sept. 14, annualgolf tournament, Indian Canyon Golf Course, Spokane, Wa.;(509) 535-4646; www.timberassociation.com.

True Value Co. – Sept. 18-23, fall market, Salt Palace ConventionCenter, Salt Lake City, Ut.; (773) 695-5000; www.truevaluecom-pany.com.

Building Component Manufacturers Conference – Sept. 19-21,Colorado Convention Center, Denver, Co.; (608) 310-6722;www.bcmcshow.com.

National Hardwood Lumber Association – Sept. 25-27, bilinguallumber grading short course, Ganahl Lumber, Anaheim, Ca.;(800) 933-0318; www.nhla.org.

RISI – Oct. 3-5, annual North American forest products conference,Park Plaza Hotel, Boston, Ma.; www.risi.com/naconf.

Association of Millwork Distributors – Oct. 8-12, annual conven-tion & show, Kentucky International Convention Center,Louisville, Ky.; (847) 303-5664; www.amdweb.com.

Remodeling Show – Oct. 9-12, Baltimore Convention Center,Baltimore, Md.; (866) 475-6495; www.remodelingshow.com.

DeckExpo – Oct. 10-12, Baltimore Convention Center, Baltimore,Md.; (866) 475-6495; www.deckexpo.com.

Do it Best Corp. – Oct. 13-15, fall market, Indiana ConventionCenter, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

American Architectural Manufacturers Association – Oct. 14-17,national fall conference, Hyatt Regency Tamaya, Albuquerque,N.M.; (847) 303-5664; www.aamanet.org.

Door & Hardware Institute – Oct. 17-18, annual conference &expo, MGM Grand, Las Vegas, Nv.; (703) 222-2010; dhi.org.

Lumber Association of California & Nevada – Oct. 18-19, annualconvention, Monterey, Ca.; (800) 266-4344; www.lumberasso-ciation.org.

Remodeling & Decorating Show – Oct. 20-21, Orange County Fair& Event Center, Costa Mesa, Ca.; (818) 557-2950; www.the-homeshow.com.

Composite Decking & Railing Conference – Oct. 22-23, Atlanta,Ga.; www.deckrailconference.com.

Green Industry & Equipment Expo – Oct. 24-26, Kentucky Fair &Expo Center, Louisville, Ky.; (800) 558-8767; www.gie-expo.com.

Specialty Tools & Fasteners Distributors Assn. – Nov. 4-5, annu-al convention & show, Orlando, Fl.; (800) 352-2981; stafda.org.

Western Wood Preservers Institute – Nov. 4-7, annual meeting,Grand Wailea Resort, Wailea, Maui, Hi.; (800) 729-9663;www.wwpinstitute.com.


ADVERTISERS IndexFor more information on advertisers, call them

directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........42

Ainsworth [www.ainsworth.ca] ................................................38-39

Atlantis Rail Systems [www.altlantisrail.com].............................27

Bear Forest Products [www.bearfp.com].....................................32

Big Creek Lumber Co. [www.big-creek.com]...............................47

Cal Coast Wholesale Lumber ..........................................................4

California Redwood Association [www.calredwood.org] ...........49

California Redwood Co. [californiaredwoodco.com].........Cover II

Canfor [www.canfor.com] ...................................................Cover IV

Capital [www.capital-lumber.com]................................................34

Duckback Products [www.superdeck.com].................................28

Fontana Wholesale Lumber [fontanawholesalelumber.com].....46

GRK Fasteners [www.grkfasteners.com].....................................23

Huff Lumber Co. .............................................................................41

Humboldt Redwood Co. [www.getredwood.com] .........................5

Idaho Forest Group [www.idahoforestgroup.com] .......................7

JEC Composites Americas [www.jeccomposites.com]..............30

Keller Lumber Co............................................................................46

LP Building Products [www.lpcorp.com].......................................3

Mary’s River Lumber [www.marysriverlumber.com] ..................35

Norman Distribution Inc. [www.normandist.com].......................45

Nu Forest Products [www.nuforestproducts.com] .....................21

Osmose [www.osmose.com].........................................................27

Redwood Empire [www.redwoodemp.com] ........................Cover I

Roseburg Forest Products [www.rfpco.com] ..............................29

Royal Pacific Industries .................................................................40

RoyOMartin [www.royomartin.com] ...................................Cover III

Simpson Strong-Tie [www.strongtie.com].....................................8

Siskiyou Forest Products [www.siskiyouforestproducts.com] .31

Sunbelt [www.sunbeltracks.com] .................................................42

Swanson Group Sales Co. [www.swansongroupinc.com].........25

Taiga Building Products Inc. .........................................................26

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....34

Western Forest Products [www.westernforest.com] ..................33

Western Red Cedar Lumber Assn. [www.wrcla.org] .......33, 36-37

FRENCHTOWN HARDWARE customers get acquainted with newowner Mike Tyksinski (left) and chat with previous owner GeneHale (right).

The new owner of a small hardware store istaking mentoring to a whole new level—and everyoneinvolved benefits.Mike Tyksinski became proprietor of Frenchtown

Home & Hardware, Frenchtown, N.J., on August 1.Nothing unusual about that, except that the previousowner, Gene Hale, will be at his side for the next sixmonths, passing on all he’s learned over the past 30years.“My involvement is written into the sales agree-

ment,” says Hale, who had owned the store since1980. After six months of daily involvement, he’llcontinue to assist the new owner (and earn retirementincome) by coming in one day a week to maintain thestore’s fix-it business: repairing screens, lamps, andfurniture. And that’s not all. For two weeks every year, he’ll

work the counter daily, allowing Tyksinski to go onvacation. It’s a sweet deal that eases the transition forthe new owner, allows the previous owner to stayinvolved, and shows customers that both men want tominimize disruption to the business.“The best part of having a business in a small town

is building relationships with people, being integratedand being part of the community,” says Hale. The new owner agrees. “Interacting with customers

is the best part of the business,” says Tyksinski. “ I gotto know Gene while working on our own house andvisiting the store for supplies. Seeing me work withhim is comforting to customers.”Tyksinski says he won’t change much at the store,

which packs a wide variety of well-organized mer-chandise into just 2,000 sq. ft. He would like to domore marketing, to “raise the store’s profile and letpeople know that it’s here.” Two days after closing the sale, he started a

Facebook page for the store. A week later, he stagedan open house, complete with food and beverages. Theevent allowed Hale to thank loyal customers and intro-duce them to the new guy.

IDEA FileEasing In, Easing Out

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