Merchant Dec 2013

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ENGINEERED WOOD WAREHOUSE MANAGEMENT 2014 INDUSTRY CALENDAR INSIDE D E C E M B E R 2 0 1 3 The MERCHANT Magazine THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

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December 2013 edition of The Merchant Magazine, monthly magazine for lumber and building material dealers & distributors in the West.

Transcript of Merchant Dec 2013

ENGINEERED WOOD WAREHOUSE MANAGEMENT 2014 INDUSTRY CALENDAR INSIDE

DECEMBER 2013

The MERCHANT MagazineTHE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

4 The Merchant Magazine December 2013 Building-Products.com

December 2013Volume 92 Number 6

OnlineBREAKING INDUSTRY NEWS, EVENTPHOTOS, & DIGITAL EDITION

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CHANGE OF ADDRESS Send address label from recentissue, new address, and 9-digit zip to address below. POSTMASTER Send address changes to The MerchantMagazine, 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 westernstates. Copyright®2013 by Cutler Publishing, Inc. Coverand entire contents are fully protected and must not bereproduced in any manner without written permission. AllRights Reserved. It reserves the right to accept or rejectany editorial or advertising matter, and assumes no liabilityfor materials furnished to it.

In Every Issue6 TOTALLY RANDOM

16 FAMILY BUSINESS

21 MOVERS & SHAKERS

25 APP WATCH

26 IN MEMORIAM

30 KAHLE ON SALES

32 NEW PRODUCTS

35 ASSOCIATION UPDATE

36 CLASSIFIED MARKETPLACE

37 DATE BOOK

38 IDEA FILE

38 ADVERTISERS INDEX

Special Features8 INDUSTRY TRENDS

THE ROAD AHEAD IN EWP

10 FEATURE STORY5 WAYS TO IMPROVE EFFICIENCY INWAREHOUSE MANAGEMENT

11 PRODUCT SPOTLIGHTWOOD-BASED HOLIDAY GIFTS

12 COMPETITIVE INTELLIGENCENEW YORK DEALER UPS THE SKU’S

14 PHOTO RECAP: APA MEETING

20A SPECIAL INSERT2014 DELUXE INDUSTRY CALENDAR— PULL OUT FOR YOUR SHOW PLANNING

18 OLSEN ON SALESCONTAGIOUS CONFIDENCE

Month-by-monthplanning guide for over 300

LBM Industry Meetings & Exposthroughout 2014

Pull out from the center of this issue

Schedule your industry show travels throughout the yearBuilding

Products DigestBPD

The MERCHANT Magazine

SCHEDULE OF INDUSTRY EVENTS

2014

The Merchant Magazine • Building Products Digest • Building-Products.com4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660(949) 852-1990 • Fax 949-852-0231 • www.building-products.com

Since 1922

SCHEDULE OF INDUSTRY EVENTS

2014

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Publisher Alan [email protected]

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Carla Waldemar

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TOTALLY RandomBy Alan Oakes

Go with the flow!HAVING RETURNED FROM back-to-back events, including the NAWLA Traders

Market, with continued signs of the industry being upbeat, perhaps now is agood time to finally recognize the industry upturn. Yes, it’s not where we wouldall want it, but we have seen the turn of a very deep curve and are positioned tostart the growth that we all have been waiting for. It's good to see smiley facesagain. While 2013 will be up (although maybe not quite to economic forecasts),2014 should head even further north. While the industry will still have its ups anddowns and growth will bring its own issues, it will be a much better place.

As business starts to grow again, we are all probably feeling a bit stressed aswe likely have 50% less staff around us now compared to pre-recession. As themarket grows again and companies still are reluctant to hire, this is perhaps thetime to review how we as individuals are performing and measure how productivewe really are. The reality is that many of us waste a good part of our working day,which has grown substantially worse with cell phone and Internet usage in theoffice.

So the question as we look at our day is where can we save time to cut costs,improve productivity, and, most importantly, add value to our companies?Imagine that you are a systems analyst analyzing yourself. How do you reallyspend your day? If we’re truly honest, I suspect most of us are wasting 25% ormore of every day.

If you start by breaking time into minutes, how many minutes did you spendreading emails? Answering them? Deleting? Tweeting? Facebooking? Makingphone calls? Actually, my questions are not how many minutes did you spend onall the above for business reasons, but for personal reasons. How much time didyou take from your company, which is paying you to be productive, during work-ing hours? Now add to that the long lunch hour, the late arrival, chit-chatting inthe hallway, waiting for meetings to start, and you can easily see the time lostbefore you even start to analyze real work.

In some companies there are processes that haven’t changed for ever. Thinkabout a nut and a bolt. How many turns does it take to get to the final quartertorque to tighten it? The reality is you may turn the bolt 10 times, yet that last turnis the only one that adds real value. So how do you reduce the other nine turns tosave time and increase productivity? It is the same with what we do every day inthe office or in the plant. If we can be honest with ourselves, how many of theseturns could be eliminated with not one iota of difference to the end result?

How much time do we spend looking for things because we are not well orga-nized? How much “stuff” do we hold on to? How is our desk organized? Howmuch time is lost due to multi-tasking and getting distracted? I know for me thatthe technology in our company always seems to be behind where it needs to be,regardless of how we try to improve it. How much time is lost in unproductivemeetings (even waiting for them to start)? How oftendoes the printer run out of paper?

For me, the secret to higher productivity is to fin-ish one task and flow to the next one—unlike thismonth’s column, which has taken four attempts tofinish. Now if I could only practice what I preach!

To all our readers, much thanks for your loyalsupport to our publications. To our advertiserswho loyally choose us, which allows us topublish each and every month, a BIGthank you. My big wish to all is that youhave a wonderful, happy and healthyholiday season and that you get to enjoyit. See you next year on our travels.

Alan Oakes, [email protected]

8 The Merchant Magazine December 2013 Building-Products.com

ing 1.1 million housing starts in theU.S. in 2014, up 16% from an expect-ed 945,000 starts in 2013. In Canada,we are expecting overall housing startsto remain similar to 2013 at 187,000.

That being said, confidence amongconsumers and builders is still fragileand challenges, from a tight lendingmarket to labor issues, remain. Of par-ticular note is the fact that multi-fami-ly construction is up 32% for 2013,relative to single-family starts at 16%.This trend is expected to continue forseveral years, based on the assumptionthat as household growth amongyoung people picks up, their firstmove is going to be into a rental apart-ment and not toward the purchase of asingle-family house.

On the positive side, home pricesare generally higher by 12% relativeto a year ago. Real gross domesticproduct is expected to average 2.8%through 2018, which is potentiallyhigh enough to improve the employ-ment rate to levels where housingstarts by 2015 could be as high as 1 to1.2 million units per year. By 2018,APA forecasters are projecting thatsingle-family housing starts couldreach 1.05 million per year and multi-family 0.5 million starts per year.

Demand growth in other end-usesectors, such as repair and remodeling,non-residential construction, andindustrial markets, is expected to aver-age 3% in 2014.

Q: How will APA approachthese changing market scenarios?

Elias: As an association, thatmeans keeping a focus on our coregoals and services while remainingopen to opportunities to expand ourprograms to new and developing engi-neered wood products and systems.

Specifically, related to housing, theassociation is pursuing the mainte-

LAST MONTH, APA–The EngineeredWood Association bid farewell to

its president of eight years, DennisHardman, who is retiring after morethan 30 years with the organization.Stepping into the presidency is EdElias, a 35-year veteran of APA whohas served in numerous roles, includ-ing technical, financial, and interna-tional marketing.

We asked Elias to offer his per-spectives on how APA and the engi-neered wood industry viewed 2013and what dealers can expect in 2014.

Q: What expectations does APAhave for housing in 2014?

Elias: Along with the rest of theworld, we’re forecasting housingdemand in 2014 and global economicgrowth in general with cautious opti-mism. The economy is slowly improv-ing, and the housing market is recov-ering in many areas. APA is forecast-

The road ahead in EWPQ&A with new APA president

INDUSTRY TrendsEngineered Wood Products

NEW APA PRESIDENT ED ELIAS

nance and expansion of structuralwood-based panel wall sheathing. But,we have also continued to support thegrowth of engineered wood floor sys-tems and reduced callbacks throughinstallation education and the properspecification of standard compliantproducts by engineers, architects andbuilders. For example, through ourAPA Simplified Wall Bracing pro-gram we are promoting the valueproposition for the use of fullysheathed walls in low to moderatewind zones. Four states incorporatedthese provisions into their buildingcodes this past year—North Carolina,Georgia, Idaho and Montana.

The association has also promotedthe expanded application of woodstructural panel sheathing used incombination with systems other thanfoam sheathing to meet energy codeand structural building requirementsthrough our Advanced Framing con-struction program.

More at the trade level, we havealso focused on expanding the techni-cal information available on mobileplatforms such as iPhones, iPads andAndroid devices. Basic mobile BuilderTips related to the prevention of panelbuckling, proper panel and nail spac-ing, squeaky floors, and care and han-dling of stock on the building sitewere successfully introduced in 2013.

Q: What are the biggest chal-lenges for engineered wood manu-facturers in the present economyand marketplace? How will thosechallenges affect LBM dealers andtheir customers, if at all?

Elias: Recovering from our recentrecession, there are no shortages ofchallenges. Overall market demandremains the primary challenge facedby the North American engineeredwood products industry. North

Building-Products.com December 2013 The Merchant Magazine 9

American structural wood panel pro-duction in 2013 is forecast to reach21.3 billion sq. ft. on a 3/8” thicknessbasis. We remain well below the 43billion sq. ft. of production during2005 and the peak of our housing mar-ket that totaled 2.3 million housingstarts that year.

Government fiscal policy is a chal-lenge that we cannot directly addressbut clearly impacts labor markets,interest rates, and consumer confi-dence. The trend of depressed employ-ment rates across all age classes, mostnotably in the under-35 age group,continues to adversely impact house-hold growth and homeownership.

Global supply and demand of woodproducts may also impact future con-sumption patterns of North Americanconstruction materials. The cost ofraw materials and labor, and the avail-ability of transport for distribution,will need to be balanced against tradepolicies between developing anddeveloped nations. Competitive use ofwood fiber for non-structural applica-tions, such as wood pellets to meetclean energy targets, could also impactfuture availability. Other potentialconstraints deal with expanding regu-latory concerns on formaldehydeemissions and those of methanol, aswell as green building legislation.

There are no shortages of chal-lenges; prioritizing them will be a keyrole of the association, its board oftrustees, and membership.

Q: What’s the industry produc-tion forecast for 2014 and beyond?Which categories are expected to bethe strongest performers?

Elias: For 2014, we forecast U.S.and Canadian plywood and OSB pro-duction to rise by 1.9 billion sq. ft.reaching 25.7 billion ft., up 9% from2013. By 2018, U.S. and Canadianstructural wood panel production isexpected to reach 27.4 billion sq. ft.

For 2014, North American produc-tion of engineered wood products,such as glued laminated timber, struc-tural composite lumber, and wood I-joists, are forecast to improve by 5%,12% and 7%, respectively as the NorthAmerican economy improves. Overallglulam demand in North America isexpected to grow from 251 million bd.ft. in 2013 to 328 million bd. ft. in2018. Structural wood I-joist produc-tion is expected to grow from 625 lin-ear ft. in 2013 to 887 million linear ft.in 2018. LVL volumes will increasefrom 61.5 million cubic ft. in 2013 to

79.8 million cubic ft. in 2018. An increase in housing starts is

expected to be the main driver for thisincreasing demand for engineeredwood in North America. We alsobelieve that recovery in non-residen-tial construction will lag behind butfollow home building. In this lattersector, we expect to see 31% growthby 2018 in comparison with 2013.

Q: What are some of APA’schief highlights from 2013?

Elias: APA’s website, www.apa-wood.org, had almost 5,000 visits perday, every day of the year. Nearly6,000 end-users had technical issuesaddressed by the APA ProductSupport Help Desk. New and updatedtechnical publications were added toour library, and close to 150,000 pub-lications were downloaded.

We developed a bi-national ANSIstandard for cross laminated timberand published a performance-ratedstructural insulated panel ANSI stan-dard for use in wall applications.Promotion and education supportedseveral APA wall sheathing systems toexpand the specification and applica-tion of structural wood panels.

APA established a strategic part-nership with WoodWorks and, withthe U.S. Forest Products Lab, hostedtwo Carbon Challenge competitions.Our field services staff hosted sixdealer training events in the past yearand presented a variety of educationalsessions around the U.S.

Q: What resources can engi-neered wood retailers and end-usersexpect from APA in 2014?

Elias: We will continue to supportthe cost-effective use of structuralwood wall sheathing to meet stateenergy and building codes. We willpromote the preference of continuous-ly sheathed wood structural panelwalls to builders and code officialsthrough field calls, publicity, seminarsand publications.

We will also continue to promotethe specification and proper applica-tion of engineered wood products inAPA wall, roof and floor systems,both in residential as well as commer-cial construction applications. The lat-ter will be in conjunction with theindustry-wide WoodWorks campaign.

As well, increased incorporation ofweb-based programs, mobile applica-tions, and social media will continueto be a priority.

Engineered Wood PanelDemand Growing Sharply

Demand for OSB and plywoodstructural engineered wood panelsin North America is expected toreach about 30 billion (3/8” basis)sq. ft. in 2013 and grow to nearly40 billion sq. ft. by 2016, accordingto Principia Consulting.

Specialty OSB and plywoodpanels are the fastest growing seg-ments within the business. Special-ty panels offer value-added perfor-mance benefits compared to com-modity panels, which enable manu-facturer product differentiation inthe market and some protectionfrom competitive pressures throughspecification selling, leading tosteady demand and higher margins.

“Industry pricing and marginsare subject to wide swings due tothe cyclical nature of the structuralengineered wood panels business,”said Steve Van Kouteren, Princi-pia’s business director-industryreports. “As manufacturers bringcapacity back online and plan newgreenfield plants for the nextgrowth cycle, a well-positionedspecialty panels business provideshigher margins and price stabilityduring these cycles.”

Building codes are a key driverof specialty structural engineeredwood panels demand. A complexmaze of building codes with vary-ing adoption rates by states andlocal municipalities are drivingchanges in how homes and com-mercial structures are designed,built and remodeled.

For example, energy codes areaffecting demand for radiant barriersheathing (RBS) and weather-resis-tant coated sheathing. California’srecently updated Title 24 energycodes require RBS at the roof inspecific climate zones, and the2012 IECC residential energycodes are driving product innova-tion and demand for air and mois-ture barrier products, includingcoated structural engineered woodpanels. Other building codes affect-ing the demand for specialty panelsinclude fire, seismic and wind load.

To quantify these industrydynamics and trends, Principia willrelease a new study, “StructuralEngineered Wood Panels 2014,Specialty Applications in Buildingand Construction,” in the secondquarter of 2014.

10 The Merchant Magazine December 2013 Building-Products.com

5 ways to improve efficiencyin warehouse management

EFFICIENCY IN THE warehouse isparamount to the success of any

LBM company. It’s amazing how sim-ple tweaks to processes can have bigimpacts on efficiency—and an organi-zation’s bottom line. Despite this,many companies fail to make the nec-essary changes.

Here are five simple things that canimprove efficiency in warehouse man-agement:

Get a WMSA warehouse management system

can provide your company withgreater inventory visibility andimproved warehouse efficiency byenabling more accurate delivery ofcustomer orders. Expedited orders canbe reduced, and the ability of staff toquickly pick and ship products ismade much easier. If your organiza-tion hasn’t implemented a WMS, it istime to start considering it.

Double-check ordersHumans are prone to lapses in

judgment. As the saying goes, crossyour T’s and dot your I’s. This hasnever been more of a requirement thanin the warehouse. The cost to send outan order for the second time, aftermessing up the first order, is typicallymore than $100 (more than double thecost of sending a first order). That

Phot

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OMar

tin

means every order mistake costs youdouble. No matter how large you are,this is unsustainable for the financialhealth of your company.

The simple fix is to always double-check an order. Make it a policy, cre-ate a system, put a sign up so everyoneremembers, do something! This isespecially important when you havenew hires picking orders.

Keep your warehouse cleanYou know all too well how annoy-

ing it can be to misplace your favoriteshirt, ball cap, or even your keys. Youassume they’re “lost forever,” when,in fact, they’re just buried under a pileof junk in your bedroom. This simplescenario can cause immense frustra-tion, make you late for an importantengagement, and ultimately increaseyour stress levels well above a reason-able level.

So what happens when your ware-house is unorganized and messy?Instead of being late for an appoint-ment, you might be late sending out anorder—which costs you money.

Allocating an hour or two perweek, or even per month, to cleaningthe warehouse can lead to amazingimprovements in your efficiency. Younever know what missing or mis-placed orders you might find. A cleanwarehouse also allows employees to

move around more quickly and getthings done easier. It’s just commonsense.

Bring some order to your ordersStacking items in an orderly, logi-

cal fashion enables easy and timelyretrieval of items for staff, whichincreases efficiency. Items can moreeasily be found and are less likely to belost or misplaced—thereby reducingwaste and optimizing available space.

Walk the floorA great way to identify inefficien-

cies is to have senior employees walkthe warehouse floor. It only takes afew minutes. Getting an outsider’sperspective on day-to-day warehouseoperations can go a long way to under-standing where bottlenecks are occur-ring and why. Sometimes regularinspections become so routine thatwhat may seem “normal” is actuallygrossly inefficient. Giving senior lead-ership—those with the authority toimplement processing changes—insight into what may seem like mun-dane company operations can lead toextensive time and cost savings for thecompany.

– Lee House is v.p. of I.B.I.S. Inc., PeachtreeCorners, Ga., a software solution provider forthe manufacturing industry. He can be reachedat [email protected] or (770) 903-3320.

FEATURE StoryBy Lee House

Building-Products.com December 2013 The Merchant Magazine 11

IF SOMEONE ON your holiday gift listcan’t get enough of the beauty and

durability of wood, you’re in luck thisholiday season. From pocket knifes topens to covers for Apple devices, youcan satisfy anyone’s craving for some-thing made of wood.

The original Swiss Army knife,manufactured in Switzerland since1891, is now available with a beautifulhardwood handle. One model, namedSwissChamp, includes 25 differenttools, including a can opener, screw-drivers, wire stripper, chisel/scraper,wood and metal saws, and a toothpick.It’s $130, at www.swissarmy.com.

Several companies make wood casesfor mobile devices. One of the bestknown is Grove (grovemade.com),which is based in Portland, Or., andmanufactures all its products there.

The company’s WoodPrint iPhone5/5S cases are constructed of durablemaple: $79 for a plan case and $119for one decorated with custom art-work. If you’d rather have bamboo, aplain case will cost just $79. Or youcan choose from dozens of pre-madecover designs for $99.

Holiday gifts for the wood lovers in your life

PRODUCT SpotlightLumber-Oriented Presents

For iPad Minis and the new iPadAir, Grove offers Wood Smart caseshandcrafted of maple, with a flexiblebamboo cover that allows three differ-ent standing positions. The price is$79 for the Minis and $99 for the Air.

Yet more wood cases are availablefrom Miniot (www.miniot.com),based in the Netherlands. Stylish pro-tection for the iPhone 5/5s is providedby a range of hardwood cases. Thecompany’s iWood case costs $106 andis available in several wood speciesand colors. Book ($194) completelysurrounds the phone and is made fromtwo contrasting wood species—mapleand walnut, while Contour ($194) isconstructed from wenge and maple.

Miniot also offers covers for Apple’siPads and iPad Minis. The hingedcover snaps firmly to the tablet andcan be rolled up into an angled stand.Choices include five wood species andsix lining colors for $92, whichincludes custom engraving of a per-sonal message, art or logo.

Baltz Fine Writing Instruments(www.baltzpens.com) creates one-of-a-kind pens in its workshop inRaleigh, N.C., using rare burledwoods and decorative metals. Thewriting point is a rollerball/ballpointhybrid for smooth writing withoutfeathering or smearing. Prices rangefrom $175 to $280.

SWISSCHAMP hardwood-handled pocketknife from Victorinox BURLED WOOD PENS from Baltz

BAMBOO DEVICE COVERS from Grove

12 The Merchant Magazine December 2013 Building-Products.com

All SKU’ed up togrow market share

COMPETITIVE IntelligenceBy Carla Waldemar

JOHN KRUEGER DID NOT grow up in a lumberyard.  Andthat’s probably a very good thing. He never acquired

that “way we’ve always done it” mindset. Instead, hebrought a business degree and a self-fueled inner drive thategged him on to expand, acquire, diversify—and succeed.

HEP Sales (which stands for heating, electrical andplumbing) was launched in upstate New York by hisuncles in 1953, the year John was born. Upon graduatingfrom college, the uncles offered him a job. Well, why not?“I didn’t know anything about building materials, but itseemed like a good opportunity,” he decided—until thefirst afternoon. “There I was, in 90˚ heat, working on asteel pole barn and thinking, ‘I got a business degree forthis?’”

But he stuck it out, laboring through the ranks until, fiveyears later, he was made operations manager of the out-fit—a promotion he downplays by demurring, “We weresmall—only eight locations, 45 employees, revenues of $6to $7 million”—not so small in my book, but… whatever.Maybe puny only in comparison to the way HEP Sales/

North Main Lumber has exploded today.Three years later, in 1991, he bought out his uncles—

“strictly HEP, plus a kitchen and bath showroom—solelymechanical, no sticks or insulation.” It wasn’t until 1999that he acquired a lumberyard, North Main, the first ofmany to come (current store count: 16) “To be honest, Iwasn’t interested in lumber; I simply wanted the location,in the southern tier of New York.”

So, welcome to a whole new industry. Big learningcurve? He chuckles. “I’m supposed to say yes. But in actu-

NEW YORK’S HEP Sales/North Main Lumber are known for their rangeof building products.

Rally ’Round the RoundtableAs a member of NRLA, John Krueger swears by

their roundtables. “They had a big impact on me. Ilearned how other people do things so I’ll never haveto re-invent the wheel. I learned the obvious, like,“Labor costs are 10%: Is that a good number? I couldfind out their norms.

“I’ve been pretty heavily involved in roundtableswith a lot of executives on the Eastern Seaboard (sothey’re no competition). These guys were leading thebuilding boom of the U.S. They were just cranking,beating each year by 20%—till 2003. Then, headswere hanging; they were off 40, 50%. But I’m comingin with, ‘I’m off 7% and I’m bummed. It sucks.’ ButI’d never experienced their double-digit growth,which had made me wonder, ‘Oh my God, how doyou do it?’ Two totally different markets. We neversaw even 20% growth, but then when I was off, it wasonly 7%.

“The roundtables taught me to keep my eye on theball. They motivated me to sit down and think aboutnumbers. But the best part was looking at other peo-ple’s yards as they shared their successes. I’d think,‘This will work: It’s how they solved a real-life prob-lem.’ I could latch onto a bright idea.”

Building-Products.com December 2013 The Merchant Magazine 13

ality, I acquired really, really good people who did what Icouldn’t. At that time, Wickes was on a slide, closingstores around us, so I picked up management people with30 years experience. They knew what I didn’t—things likeproduct mix—so I relied on the expertise of the peoplewho worked for me. I knew how to manage people, how torun a business.”

So, forget the traditional yard. “I had six full-servicelumberyards, but different from the usual yards. I meldedthem with HEP stores. HEPs carried 17,000 SKUs and atraditional lumberyard had 18,000, so, combined, we had38,000 SKUs: very diverse offerings.”

And a customer base just as diverse. “At first, it was a50/50 mix of pros and walk-ins. Now, it’s 75/25, drawingmore builders because of our deeper inventory—things thetrades want, like furnaces and AC.” Plus service. “I spenda lot of time, effort and money on training. Our staff isvery knowledgeable, and all full-time—no college kids.And I have 15 outside salesmen on the road, holding thebuilders’ hands—plus boom trucks, forklifts….”

Then along came Builders Bargain Outlets (now fourlocations). Diversify again, to capture the d-i-y market asyet-another slice of the pie (contractors are its good cus-tomers, too). For John, it solved the problem of “What doyou do with your mistakes?” he says. “Before that, we hadstores of 8,000 to 10,000 sq. ft., but 2,000 of it, in the back,was filled with culls. It used to drive me crazy. Now, man-agement has 60 days to get rid of them or they get sent tothe outlets. It keeps the places from looking like junkyards.And I’ve hired an employee as a buyer, whose sole job islooking for closeouts, discontinued, and some distressedproduct. We just bought six, seven carloads of discontin-ued windows that had sold for $150; we can offer them at$70 to $90. It’s a great outlet for windows and doors.”

Oh, by the way, John also makes his own doors—anoth-er of those diversification-by-accident projects. “When oursupplier went out of business, I went to the auction andended up buying the business, which is a great benefit forour contractors. They used to have to wait two, threeweeks for an order. Now, we can do specialty doors in a

day. We also do our own trusses,” he tosses in—“servingcontractors in a way our competitors can’t.”

To facilitate this growing empire, John opened a distrib-ution center in Waterloo—lumberyard, offices, an outletstore, the door and truss plants all in one location that ser-vices every yard once a week. (Between times, nearbyyards help each other out.)

Then in 2000, John got another bright idea and addedone more slice of the pie to his plate. How about a lightingstore? He calls it Bright Ideas, and the well-heeled folks upthere in the Finger Lakes love it. (“The Canandaugua is thesecond-most affluent lake in the country, after Tahoe,”John reports.) He doesn’t choose to go after the custombuilder, who may require coddling, or aim at the remodel-ing market. “Our customers are very, very rural, so whenwe open a new store, we’re looking for a demographic of30,000 people in a 10- to 15-mile radius. Not urban,” heemphasizes. “We had eight locations in the early ’90swhen I started growing the business, so in expanding Iwanted to try something different, outside my comfortzone” of 20 to 30 miles between existing stores. “So I wentan hour-and-a-half away as a kind of trial, to see if it couldwork, where nobody knew us. Wegman (the supermarketmagnate) owned a chain of yards, but they weren’t makingenough money, so he closed the brand. I thought, ‘I’ll getinto those existing markets,’ so I bought his sheds, themachinery, and hired his employees—a huge investment inequipment, staff and SKUs. We went from their five or sixpeople per store to 20, but the opportunity was a no-brain-er. They’d been making $10 to $12 million a yard, so Istarted pumping things up.”

And that’s the part of the operation John loves best.“I’m a marketing guy, to be honest with you. If there’sanything I enjoy, it’s that. I write all our radio spots, andwe’re using digital a lot more, too—Facebook, cool stuffon our website.” And promos involving customers. NorthMain offers classes at each location—everything from win-dow clinics to plumbing (“The ladies are very interested,and women are a growing market.”) to floor heating in apole barn. At sessions, as an extra lure, “we give away anoverhead door or entrance door.” Bottom line: Does itdrive sales? “Absolutely! No doubt about it. It’s been verybeneficial for us.” So have the zany Ugly Bathroom andUgly Kitchen contests, where homeowners submit photosin order to win a makeover.

Of course, the recession dampened the flames a bit,necessitating “some layoffs, some firing—people I shouldhave fired earlier, but labor is so hard to get here.” But theoutlook is becoming bright. “In 2009, what I did was man-aging my company, and I know how to do that. With a$36-million business, I could do a lot. Ialways know what I’ll do in sales thenext year, but I got a whole lotsharper.”

So—more expansion? Johnresponds with a firm no. “I have 200employees, and that’s a lot.” But,never say never. Son Max, age24, has worked here since a kidof 14. “He’s now an assistantmanager—my hope for thefuture.” Another bright idea.

Carla [email protected]

DEALER’S push to attract female customers included a Ladies Day,based in its stores’ kitchen showrooms.

14 The Merchant Magazine December 2013 Building-Products.com

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APA-THE ENGINEERED Wood Associationhosted its annual meeting Nov. 2-5 at HyattRegency, Huntington Beach, Ca. [1] Dotti &Ted Schultz. [2] Mike Nielly, Tom Liberator. [3]Clancy Redmond, Dave Rupp. [4] Ed & JanElias. [5] Chris Degnan, Geoff Crandlemire. [6]Jim Enright, Doug Calvert. [7] Charlie Smith,

Chris Wischmann, Robert Fouquet. [15] AngieHarrison, Pam Green. [16] Jennifer Cover,Kerlin Drake, Marilyn Thompson. [17] TimFisher, Tracy Trogden, Emmanouel Piliaris.[18] Cheryl Kuchar, Kim Sivertsen. [19] Kathy& Mike Wacker. [20] Dan & Margie Semsak.

(More photos on next page)

Scott Ashpole. [8] Mike Lobbett, Mike Dawson.[9] Katy Tomasulo, Jim Walsh, HeatherCrunchie, Brenda Collins. [10] Fred Kurpiel,Rich Donnell, Jon Anderson. [11] Darcy &Denny Huston, Talley Dunn. [12] Jim Pattillo,Cathy Rudinsky, Monty Woods. [13] RyanStanton, Mary Jo Nyblad. [14] Bart Bender,

Building-Products.com December 2013 The Merchant Magazine 15

APA wished farewell to retiring presidentDennis Hardman during its annual meeting(continued from previous page). [1] Kathy &Dennis Hardman. [2] Steve Killgore, AllynFord. [3] Pat Lynch, Mike McCollum. [4] LizChurchill, Donna Meade. [5] Chuck Casey,Ken Caylor. [6] Ken Dunham, Gina Rodriquez.

16 The Merchant Magazine December 2013 Building-Products.com

FAMILY BusinessBy Wayne Rivers

Why your next hirewill probably be a flopFAMILY BUSINESSES and their own-

ers are good at a great manythings. One thing, however, that fami-ly business leaders are not particularlydistinguished at is recruiting, hiring,training, and retaining outstanding tal-ent. What are some of the root causesof this deficiency and, more impor-tantly, what might family businessleaders do about them?

First, what’s the downside of apoor hire? What are the direct andindirect costs? It’s hard to put a figureon an item like this because many ofthe costs are unseen, opportunitycosts. Management firms claim thatreplacing a terminated employee costsan employer between two and seventimes annual salary. They also saythat hiring and training a new person

costs between 25% and 200% of thatperson’s annual compensation.Getting people—especially the wrongpeople—on your team is expensive!

What about the human toll? Howmany family business leaders havelain awake at night, dreading havingto terminate an employee? Even afairly new person who hasn’t been onthe payroll long has feelings and fam-ily, and it hurts to have to let peoplego. And there are other opportunitycosts, such as wasted time, lowermorale, wasted time on the parts ofother family business executives, andunsatisfied customers, as well.

A good employee can do the workof two to three poor employees, sothere are also inefficiency/low pro-ductivity costs associated with poor

hires. The long and short of it is this:poor employees cost family business-es a pretty penny, and the prettypenny is directly proportional to theimportance of the position to theorganization.

Why are family business leaderspoor at hiring, and why is your nexthire likely to be a flop? There are theusual culprits: no well-developed hir-ing system, insufficient time devotedto hiring and training, the over-reliance on gut feel and intuition, andthe over-reliance on traditional hiringmethods such as newspaper classifiedads, etc. But the main reason thatfamily business owners hire poorly isthat they rely on the most flawedevaluation tool known to mankind:the unstructured personal interview.

It’s easy to understand: anyonewho has half a brain can do reason-ably well in a 30 to 90 minute jobinterview. They know, for the mostpart, what questions will be asked andwhat the appropriate answers mustbe. Furthermore, most of the inter-view time is devoted to talking, andwe don’t mean talking by the candi-date. In most of the interviews thatwe’ve observed, when family busi-ness leaders are hiring new people,it’s almost as if the executives are try-ing to sell the candidate on the com-pany, instead of the other wayaround. The questions are usuallyopen-ended ones such as, “What doyou consider to be your greateststrengths and weaknesses?” or “Howwould you describe yourself?” Suchquestions simply don’t compel appli-cants to reveal much about them-selves in an honest or useful way. Is

Building-Products.com December 2013 The Merchant Magazine 17

an interviewee going to say, “I have acrack problem and I steal?”

It’s much better to avoid first-datetype questions and focus instead onspecific past job experiences and job-related hypothetical scenarios. Theidea is to focus on objective, relevantdata and tune out any questions thatinvite the candidates to predict thefuture, reconstruct a rose-colored past,or ponder life’s big questions.Interviews that are structured and allabout the facts are six times moreeffective than unstructured interviewsat predicting a candidate’s job perfor-mance. Some experts believe that jobinterviews aren’t needed at all.Research shows that an aptitude testpredicts performance just as well as astructured interview.

So there’s part of the answer: focuson facts, specific work outputs, andpast examples of work instead of pie-in-the-sky conversation and big pic-ture verbal grandiosity. And here’sanother concrete idea you can use:Get other people on your teaminvolved. Allow them to observe andcomment freely on what they see as acandidate’s strengths and weaknesses.If it’s true that two heads are betterthan one—and it is—then gettingfeedback from the other valued peo-ple in your family business makesperfect sense.

A variation on this theme is to putcandidates to what we call the“spouse test.” When considering animportant hire, we often bring in thespouse of the owner and have him orher interview the candidate. They willhelp bring that terribly underratedcharacteristic—objectivity—to thehiring process. By the same token, ifyou’re getting near the decision por-tion of the process, it’s a good idea tohave the candidate’s spouse come infor an interview. The spouse tests areinformal, but they’ve proven overtime to be outstanding tests for fit andchemistry.

It costs too much time, money, andemotional turmoil to let your next hirebe a flop. Apply these 21st-centuryhiring techniques and save yourself alot of trouble, while simultaneouslyimproving the quality of the peoplearound you.

– Wayne Rivers is president of theFamily Business Institute, Raleigh, N.C.Reach him at [email protected] or (877) 326-2493.

Reprinted with permission of the FamilyBusiness Institute. No portion of this articlemay be reproduced without its permission.

18 The Merchant Magazine December 2013 Building-Products.com

confuse agreeability with likeability, totheir own detriment.

So what’s the difference? Confi-dence. Sure, Bob sounds great, but hehas the confidence and nerve to act onhis convictions and sell those convic-tions (which are usually correct) to hiscustomers and suppliers. A great brokeris a money-making asset to any compa-ny’s buying strategy, and Bob is that.

Honesty, hard work, personal beliefs,hobbies/passions, and a myriad of othervalues are important to people. Sharingthese values with our potential cus-tomers will strengthen our businesstogether, but by itself, is not enough.

Sharing values with confidence wins the day in the salescontest.

Why Not Confident?Salespeople are uncomfortable and afraid of being too

pushy or being perceived as a liar or a B.S. artist. These areprejudices that are taught at the dinner table across Americaevery day. Many of us are raised by people who are preju-diced against salespeople. It is deep in our psyche.Confidence comes from learning, practice and preparation.

• Our product and market. Learn as much about whatwe are selling as we can. Seems obvious, but isn’t. Manysellers leave product and market knowledge to someonearound them. This is a mistake—and does not breed confi-dence.

• Our customers. Make learning about human interactiona lifetime pursuit.

• Ourselves. As salespeople we mustask and answer the difficult question:How do I affect others? A treacherousjourney, but more treacherous for us isnot working on this important question.

Hard Work Is Confident(and Sexy)

Sixty calls a day breeds a posi-tive, confident momentum that 30calls a day never will. Hard workbreeds confidence. Make the calls.

OLSEN On SalesBy James Olsen

James OlsenReality Sales Training

(503) 544-3572 [email protected]

THINGS THAT MAKE others feel goodsell. So, what makes us feel good?

Confidence Is #1Have you ever seen a homely man

with a beautiful woman, or vice-versa?Money is not the answer. That’s just acop-out for people with no money andno confidence. There are lots of lonely,rich and good-looking people.

Confidence is the answer. The BoldFirst Step is one of the characteristics ofmaster sellers. The feeling of confidenceradiates. It transfers to others. Why doyou like hanging out with your confidentfriends?

Confident sellers make their customers feel confident,which is one of the best feelings in the world.

Confidence, B.S., and TruthAnimals, of which we are purportedly the most intelli-

gent (as reported by us), can feel the difference betweenB.S. and the truth, which is where true confidence comesfrom. Weak sellers let themselves off the hook by saying,“I could be a great salesperson, but I don’t want to be likeJohn, he’s such a B.S.’er.” Who’s B.S.’ing whom?

Any businessperson who has survived the last 60months absolutely can smell B.S. a mile away. Moreimportantly for us as salespeople, they can smell a lack ofconfidence from five miles away. And just as our customerswant to be around confident people, they don’t want to bearound a lack of confidence—which also radiates.

Many hard-working but struggling, plateaued and under-performing sellers think they can get away with only tellingthe truth. We must tell and sell the truth in a compellingand confident way.

I know a lumber broker, alias Bob Wreckman, who hasone of the best sales voices I have ever heard. I call himZeus, because that’s what he sounds like. How can you notbuy from this guy? But Bob is not a B.S.’er. He is as seri-ous as your first date’s father. He is a professional. He is inthe market, on the market, and making markets daily. He isgood for his customers, suppliers and the traders aroundhim. Radiation, it creates profit.

Are others as intelligent as Bob? Yes. Do they knowtheir markets and their customer’s needs as well? Some do.Do they care about their customers as much? Some caremore and some care too much. Do they make more calls?Some do. Is Bob more likable? Bob is very likeable, butthere are those who are more likeable—but most of them

Contagious confidence

Building-Products.com December 2013 The Merchant Magazine 19

DEALER BriefsHardware Express, a 17,000-

sq. ft. Ace Hardware in Coos Bay,Or., was opened Dec. 1 by Gary andBeverly Kalsbeek, along with their chil-dren and their spouses, Marty & LisaKalsbeek and Keri & Terry Grafe.

The Kalsbeeks hope to later add agarden center.

Lomas True Value, Albuquer-que, N.M., owner Jim Capin inked a10-year lease to add a 13,700-sq. ft.store at Albuquerque’s PromenadeShopping Center.

Foster True Value Hardware,Mariposa, Ca., continues fine-tuningplans to build an expanded store, oneyear after receiving county planningcommission approval.

Hangtown Hardware, Placer-ville, Ca., is closing this month unlessretiring owner Art Hardie can find abuyer for the 64-year-old store.

Overland Ace Hardware ,Boise, Id., is liquidating and will closeby the end of December after 32 years,with the retirement of owner DarylWatson.

Orchard Supply Hardware,Goleta, Ca., was evacuated Nov. 13after a fire broke out in a roof-top air-conditioning unit.

Sun Mountain, Berthoud, Co.,has opened a showroom and designcenter in San Francisco, Ca., to show-case its custom wood doors, mouldingsand wide plank flooring.

Ace Hardware awarded“Coolest Hardware Store” of the yearhonors to six retailer members, includ-ing Carmel Ace Hardware ,Carmel, Ca. (famous for its two uniqueboutique entrances and having realredwood trees inside the store), andParkrose Ace Hardware ,Portland, Or. (known for its extensiveselection of fasteners, grills and uniquerentals).

Anniversaries: Potlatch Corp.,Spokane, Id., 110th … Pro Group,Denver, Co., 60th … AlpineLumber Co., Englewood, Co., 50th… Starfire Lumber Co., CottageGrove, Or., 30th …

Montana Dealer AddsSecond Store

Rock Creek Lumber, Red Lodge,Mt., has opened a second location inBillings, Mt., in the former home ofZig’s Building Materials.

Owner R.D. Kirkness purchasedthe one-acre Zig’s property as well asan adjacent acre.

He expects at least 75% of thebusiness to be to pro’s and, sinceBNSF tracks run alongside the site,Kirkness is working with MontanaRail Link to add a short rail spur intohis yard.

Roseburg Upgrades MissoulaRoseburg Forest Products will be

making capital expenditures at itsMissoula, Mt., particleboard facilityto upgrade the forming line of theexisting press.

The upgrade is designed toenhance product quality and improvethe line’s overall efficiency.

According to Grady Mulbery, vicepresident of operations, “Theimprovements we will be making atour Missoula facility will allow us tobetter meet the evolving needs of ourcustomers, and solidify the long-termviability of the facility.”

BMC Buys No. Ca.’s WBSBMC, Boise, Id., has acquired

Northern California millwork whole-saler Western Building Specialties,Sacramento, Ca., to expand its mill-work offerings in Northern California.

WBS provides residential pre-hungdoors, trim, moulding, shelving andcloset organizers. Its commercial

department offers hollow metal doorsand frames, as well as commercialhardware. Its Western Bath andShower division provides tub andshower enclosures, mirrors, bathaccessories, bathroom partitions,storefronts and specialty glass.

“WBS has built over a 60-yearperiod a reputation for providingquality products and reliable ser-vices,” said BMC c.eo. PeterAlexander. “We are very excitedabout serving customers through thecombined strength of WBS and BMCat our facilities located in Sacramento,Fresno and Modesto.”

BMC operates 29 lumberyards, 15truss plants, and 24 millwork opera-tions across the West, plus Texas andNorth Carolina.

New Name for Hawaiian AcesMaui Varieties Ltd.’s stores

throughout Hawaii recently held“brand opening” events to promotetheir stores’ name change toHouseMart Ace Hardware.

Newly renamed are Ace Hardwarestores in Hilo, Keaau, Captain Cook,Ocean View, Pahoa and Naalehu; AceHardware & Crafts in Waimea andKailua-Kona, and Ben Franklin Craftsin Hilo.

Staff, management and ownershipremain the same.

Taking on the HouseMart nameearlier were the chain’s four AceHardwares in Las Vegas, Nv., andseven in the Pacific Northwest(Milwaukie, Or.; Des Moines,Lakewood, Longview, and Olympia,Wa., and two in Renton, Wa.).

20 The Merchant Magazine December 2013 Building-Products.com

After a period of sharp declinesresulting from the failing housingmarket and declining economy, theretail lumber and building materialindustry is set for a modest turn-around, thanks to a series of positivechanges that will affect revenue overthe next five years, according to anew IBISWorld report.

Over the past five years, revenuefor LBM dealers has grown at a mini-mal average annual rate of 1.8%.

According to IBISWorld industryanalyst Kerry Coughlin, “The volatilecost of lumber, which accounts forabout 65.4% of industry sales, hasalso burdened industry firms over theperiod.”

The trend has made it difficult forretailers to anticipate future spendingand control costs. Furthermore, theindustry has experienced intensifyingcompetition, especially from homeimprovement stores, which offer theadded convenience of one-stop shop-ping and, at times, lower prices.

Such factors have pressured profitmargins. IBISWorld estimates thatprofit declined to industry lows in2010, only to recover in 2013 withmargins reaching 2.6%. Falling mar-gins have caused some operators toeither exit the industry or consolidateover the five-year period. As a result,the number of enterprises hasdeclined at an average annual rate of1.7% to 43,692 in 2013.

“After facing stagnant conditionsfollowing the recession, the housingand nonresidential construction mar-

kets finally began making significantstrides in 2012, and strong gains inboth sectors are expected for 2013,”said Coughlin. IBISWorld projectsindustry revenue will jump 10.1% to$96.3 billion in 2013, driven by anincrease in residential constructioninvestment and higher spending onhome improvements.

Further, as population growth andpent-up demand drive up housingstarts, and improved economic condi-tions boost demand for repairs andrenovation projects, sales of industryproducts will continue to rise. Overthe next five years, industry revenueis forecast to increase, albeit not ashigh as prerecession levels.

The retail LBM industry exhibitsvery low concentration of ownership.It is highly fragmented, with no singledealer having more than 5.0% of mar-ket share. The majority of dealers areprivately owned, and they successful-ly supply the local demand in theircommunities. In recent years, many ofthese small operators have mergedwith other players or exited the indus-try, increasing concentration.

Stores covered in the report consistof dealers that retail building materi-als, such as lumber, hardwood, stonesand brick. Companies may also sup-ply doors, windows, roofing, cabinets,floor coverings, electrical and plumb-ing goods. Not included are homeimprovement centers, paint and wall-paper specialty stores, and hardwarestores.

SUPPLIER BriefsStates Industries, Eugene, Or.,

laid off 35 employees—about 10% ofits 331-person workforce—Nov. 11,blaming an inability to secure anti-dumping tariffs on Chinese plywoodimports.

Mary’s River Lumber, Corvallis,Or., purchased Port GardnerTimber’s sawmill in Bow, Wa.

Sierra Pacific Industries’sawmill in Lincoln, Ca., sustained anestimated $75,000 of damage in anOct. 27 fire that started above a drykiln.

Mid Valley Lumber Special-ties, Aldergrove, B.C., next month willmove to larger offices in downtownLangley, B.C.

Blomberg Windows, Sacra-mento, Ca., is selling off its remainingassets and real estate and closing after57 years.

Longtime TimberTech distributorOrePac Building Products ,Wilsonville, Or., is now also distributingsister product AZEK lines throughoutthe West from its 10 DCs.

Azek distributor Boise CascadeBuilding Materials Distribution is nowalso supplying TimberTech productsthroughout California and Carson City,Nv. Its Lathrop, Ca., branch will serveNo. Ca. and Carson City, whileRiverside, Ca., will cover So. Ca.

California Redwood Co. ,Eureka, Ca., signed Russin Lum-ber, Montgomery, N.Y., to distribute itsredwood products in the Northeast.

Wahoo Decks, Gainesville, Ga.,offers a new AridDek color—artisanclay.

Thermory USA’s Thermory deck-ing was selected by This Old Housemagazine as one of the top 100 newhome products for 2013.

Simpson Strong-Tie, Pleasan-ton, Ca., was named 2013 Do it BestVendor of the Year in the buildingmaterials product category.

Horizon Distribution, Yakima,Wa., was named Farm Mart Distributorof the Year by Pro Group.

Happy Holidays andThank You.

With All Our Best Wishes for 2014.

ROCKLIN DISTRIBUTION CENTERTel. (800) 348-1400 • (916) 624-9293

www.taigabuilding.com

SANGER DISTRIBUTION CENTERTel. (855) 348-1500

building products

LBM Retailers Set for Modest Turnaround

Building-Products.com December 2013 The Merchant Magazine 21

Cal Coast Wholesale Lumber, Inc.Pressure Treated Forest Products

Alkaline Copper Quat (ACQ)Custom Treating

Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482Phone 707-468-0141 • Fax 707-468-0660

[email protected]

Sales for Coast Wood Preserving

Jerry Long, executive v.p. and gener-al mgr., Parr Lumber, Chino, Ca.,is retiring Dec. 12 after 23 yearswith Parr and 43 years in theindustry. Mike Parrella will suc-ceed him, with Bert McKeebecoming sales mgr. and JoeMcCarron, assistant sales mgr.

Frank Elfering has been appointedv.p.-purchasing for Boise CascadeBuilding Materials Distribution,Boise, Id. Rich Viola is now v.p.-sales & marketing for BuildingMaterials Distribution.

Eddie Smalling, ex-Oregon CanadianForest Products, has returned toradio frequency kiln drying sales,as product mgr. for Tru-Dry RFKDtimbers at Capital Lumber,Woodburn, Or.

Don Bell has retired after 27 yearswith Bear Forest Products,Riverside, Ca. Tom Doidge, ex-GP/BlueLinx, succeeds him aswarehouse mgr.

Jesse Manzo has joined the lumbertrading team at Buckeye Pacific,Portland, Or.

Ken Laughlin has been named presi-dent of West Coast WoodPreserving LLC, Bakersfield, Ca.He remains based in Phoenix, Az.

James Brebner, ex-AllweatherWood, is new to sales at WesternWood Preserving, Sumner, Wa.

Scott Wirges has rejoined ParrLumber, as store mgr. in Eugene,Or.

Fred Taylor has been named v.p.-manufacturing at ProBuildHoldings, Denver, Co.

Kevin Caldwell is now handling spe-cialty plywood and lumber cut stocksales at Plywood Solutions Inc.,Albany, Or.

Gerd Kronenberg is a new lumbertrader at Shelter Products,Portland, Or.

Benjamin Mettler, ex-Huttig Build-ing Products, has joined OrepacBuilding Products, Wilsonville,Or., as a ThermaTru product mgr.

Shreedhar Patel has been nameddirector of finance at El & ElWood Products, Chino, Ca. In ElkGrove, Ca., Brian Wheeler is nowoperations mgr. and WayneCallicott, door shop mgr.

Bill Brown is retiring Jan. 1 afterseven years as president of GreenDiamond Resource Co., Seattle,Wa. He will be succeeded byDouglas Reed, currently seniorv.p. of California operations.

Mike Howell has been promoted todirector of operations for ParrLumber, Hillsboro, Or.

Doug Embree is a new trader at MillDirect Lumber Sales, LakeOswego, Or.

Rob Roundy, ex-Truth Hardware,has been named western regionalsales mgr. for Deceuninck NorthAmerica, Monroe, Oh.

Miguel Zepeda, ex-Max USA Corp.,has joined Fasco America asPortland, Or.-based Northwest ter-ritory mgr.

Jim Mackall, ex-BlueLinx, is nowSacramento, Ca.-based v.p. ofsales at Steeler Drywall Construc-tion Supply, Seattle, Wa.

Sara Grootwassink Lewis, LewisCorporate Advisors, was elected tothe board of directors of PlumCreek Timber Co., Seattle, Wa.

Owen Elkins is now territory salesmgr. for the Pacific Northwest atBoral TruExterior Trim, Roswell,Ga.

Dave Harris has been promoted tomgr. of Builders Supply Co.,Chester, Ca.

Wally Placido has joined CanyonCounty Habitat for Humanity asReStore mgr. in Nampa, Id.

Sandra Collins, ex-Curtis Lumber, isnow San Francisco, Ca., areaaccount mgr. for Hilti.

Dave Cox, ex-Allied BuildingProducts, is a new branch mgr.trainee at Pacific Coast BuildingProducts, Rancho Cordova, Ca.

Brett Bricker, ex-Home Depot, isnew to millwork sales at Lowe’s,Concord, Ca.

Marty Crouse, ex-CertainTeed, hasjoined Johns Manville, sellinginsulation in No. Ca., Nv., and Hi.He is based in Granite Bay, Ca.

Mike Clark, senior v.p. and chiefmerchandising officer, True ValueCo., has retired after 40 years inthe industry. He came to the co-opfrom Orchard Supply Hardware in2008.

Keith Foxx, ex-BlueLinx, is nowbusiness development mgr. withBlueTarp Financial, Atlanta, Ga.

Barrie Shineton, president and c.e.o.,Norbord, will retire at the end ofJanuary, to be succeeded PeterWijnbergen, currently senior v.p.and chief operating officer.

Terry Upgaard has been named mgr.of plywood sales for CenturionLumber Mfg., Chemainus, B.C.

Angela Braly, ex-Wellpoint, has beenelected to the board of directors ofLowe’s, Mooresville, N.C.

Doug and Phil Hoals are new fencinginstallers at Mungus-Fungus ForestProducts, Climax, Nv., accordingto co-owners Hugh Mungus andFreddy Fungus.

MOVERS & Shakers

22 The Merchant Magazine December 2013 Building-Products.com

Ochoco Handling Sales forRevived Arizona Sawmill

Ochoco Lumber Co., Prineville,Or., has been named exclusive salesagent for all lumber to be produced atthe former Fort Apache Timber Co.sawmill in Whiteriver, Az.

Renamed White Mountain ApacheForest Industries, the facility is cur-rently undergoing a $10-million refur-bishment and is expected to restart inFebuary (see Nov., p. 38).

The facility will primarily producepine industrials and commons. At fullproduction, capacity is 42 million bd.ft. of 4/4, 5/4 and 6/4 products of vari-ous lengths and widths, sourced fromthe reservation’s 770,000 acres of tim-berland. The mill will also produce firtimbers, squares and poles and—oncethe mothballed reman plant restarts—cut stock and moulding products.

Art Andrews and Steve Fetrow willhandle sales at Ochoco.

Insulation Demand SurgingU.S. demand for insulation is pro-

jected to rise 7.6% annually to $10.3billion in 2017, according to a newFreedonia Group forecast.

Growth will be driven by anincrease in construction spending from

a low 2012 base. Gains will also beboosted by changes in building codesand construction practices that call forstructures to use energy more effi-ciently. Such measures as the 2012International Energy ConservationCode (IECC) and the most recentLeadership in Energy & Environmen-tal Design codes—LEEDv4—willspur the addition of more insulation toreduce energy consumption.

The residential market is forecast topost double-digit insulation demandadvances through 2017, spurred by astrong rebound in housing starts. Notonly will more houses be erected, butbuilders will install more insulationper structure in order to comply withthe 2012 IECC.

Residential insulation demand willalso be supported by homeownersattempting to lower utility bills byadding insulation to attics and wallsand sealing gaps to prevent air leaks.

Demand for insulation in the non-residential market will see solidgrowth through 2017, spurred bystrong advances in construction.Further gains will come from risinginterest in green building practices,such as those put forth by the LEEDrating system, that call for the use of

more insulation with higher R-values.Fiberglass accounted for 47% of

insulation demand by value in 2012.Fiberglass will remain the marketleader in 2017, with demand reaching$5.0 billion. Its low cost, insulativeproperties, fire resistance, and ease ofinstallation make it popular amongboth professionals and d-i-yers.

Demand for foamed plastic insula-tion, which accounted for the secondlargest share of the market in 2012, isforecast to grow to $4.6 billion in2017. These materials are used moreextensively in nonresidential, due totheir high R-value.

However, the residential marketwill offer solid growth prospects goingforward, as code changes that call forhouses to be better sealed to preventair leaks will boost the use of theseproducts, in spite of their higher coststhan fiberglass insulation.

Foamed plastics are well suited forsealing hard-to-reach areas, such ascrawl spaces and between walls.

Weyco Merges SubsidiaryWeyerhaeuser Co., Federal Way,

Wa., has agreed to merge its home-building and development division,Weyerhaeuser Real Estate Co., with a

Building-Products.com December 2013 The Merchant Magazine 23

subsidiary of TRI Pointe Homes.As part of the deal, which is

expected to close in the spring, Weycowill receive about $700 million and80.5% of the shares, with TRI Pointeshareholders owning the balance.

Barry Sternlicht will remain chair-man of the TRI board, which willexpand from seven directors to nine.Weyerhaeuser will select four direc-

tors, TRI five. Doug Bauer will con-tinue as c.e.o. of TRI Pointe, withTom Mitchell as president and chiefoperating officer, and Mike Grubbs aschief financial officer.

Dealer Networking Meet toKick Off Builders Show

The National Lumber & BuildingMaterial Dealers Association will hold

its first-ever networking event duringthe 2014 International Builders Showin Las Vegas, Nv.

Set for 7 a.m. Feb. 5 at the LVHHotel (next door to the conventioncenter), the Dealer NetworkingBreakfast will include the latest hous-ing forecast from NAHB chief econo-mist David Crowe.

Cost is $25.

DO IT BEST Corp. recently invited a select group of managers and lead-ers from member-owned stores across the U.S. to its Fort Wayne, In.,

headquarters for its inaugural Leadership Development Institute, a week-long, intensive training development program.

24 The Merchant Magazine December 2013 Building-Products.com

Holiday Greetings fromParr on our 38th Christmas

Jesus AldreteRaul AldreteLucero AvilesAntonio AvinaPaul BlevinsNorm BoucherEdward ButzJose ChicasRosario ChicasKaren Currie

Nick FergusonVince GallowayRicardo GarciaFidenceo GomezHenry HerreraLeticia HerreraChris HexbergJerry LongJoe McCarronBert McKeeLuis Moreno

Brad MortensenRafael PantojaGeorge PardenTimoteo ParedesMichael ParrellaPeter ParrellaKurt PetersonEduardo PierreJanet PimentelNestor Pimentel

Yolanda RodriguezAlex RomeroBill SharpLois TavennerMelinda TaylorPeter UlloaEnrique VargasOscar VillegasRobert WilliamsPamela WintersMatt Wright

Thank you to our Customers and Suppliers

LMC DEALERS from around the country made their way to Philadelphia Nov. 13-15 for the buyinggroup’s annual forest products & building materials expo.

Street Change Upsets GanahlGanahl Lumber, Corona, Ca., is

upset over a proposed plan to reroutea street that runs in front of the loca-tion, to make way for a new 464-unitapartment complex.

“Two of the key parts of locationare access and visibility, and that’swhat we’re losing,” c.e.o. Peter

Ganahl told The Press-Enterprise. As part of the project, the street

would be straightened so it runsthrough the new apartment complex,then turns south and bisects anotherstreet just past Ganahl Lumber.

Ganahl was also upset that hereceived only a month’s notice of theproposed plan. “I would have thought

we would have gotten a little morerespect and would be asked our opin-ion on a street change,” he said. “Iguess not.”

Sears Hardware Shrinks UnitsSears Appliance & Hardware has

opened in Dallas, Tx., one of the firstfollowing the company’s new smaller,neighborhood footprint. Similar storeshave been opened in Big Rapids, Mi.,and Cedar City, Ut.

“When we heard that Sears wasinterested in rolling out a smaller,neighborhood model, we knew thissmaller format would fill a void in theNorthwest Dallas area,” said DaveMaggio, who co-owns the locationwith Michael Donohoe. “Our newstore embraces the feel and customerservice of a neighborhood hardwarestore, without compromising on thereach of our merchandise assort-ment.”

He said the smaller models are16,000 to 18,000 sq. ft.—vs. 22,000-25,000 sq. ft. for the larger stores—yet still offer the same size and quali-ty of inventory. Additionally, anyitem unavailable in store can beordered and delivered straight to thedoor of the consumer.

Building-Products.com December 2013 The Merchant Magazine 25

APP Watch

Application: LITERATURE LIBRARYProduced by: Simpson Strong-TiePrice: FreePlatforms: iPhone, iPad; coming

soon for Android devices

Simpson Strong-Tie has releasedan expanded version of its LiteratureLibrary mobile app, which allowsusers to download all of the compa-ny’s catalogs, fliers, and technicalbulletins to their mobile devices.

Once the library is created, eachcatalog can be searched by keyword,including product name, number, ordescription. In addition, all down-loads can be viewed on the go—without wi-fi or cellular connection.

Download from iTunes App Store

COURT ACTION: Los Angeles HardwoodLumberman’s Club members and guests cameout swinging for the fall tennis round-robintournament Nov. 10 at Anaheim TennisCenter, Anaheim, Ca. (Left to right) David &Katie Church, Randy Porter, Teresa Hallock,Stephen Ondich, Leon Richman, Kit Rohm,Dan Bohannon, Bill Fitzgerald, Mike Walters,Ellie Mendiaz, Ron & Kim Nicolas, Dan Nezos.

26 The Merchant Magazine December 2013 Building-Products.com

IN MemoriamWilliam Gordon Scott, 94, retired

founder of Scott Lumber, Portland,Or., died Oct. 24 in Portland.

After graduating from RutgersUniversity in 1941, he served with theMarines in Guadalcanal during WorldWar II.

In 1947, he started his lumber careerat A.C. Dutton Lumber Co.,Poughkeepsie, N.Y. Ten years later,he moved his family to Portland toopen a West Coast office for the com-pany.

He retired from Dutton in 1980 and

started his own company a year later,retiring in 2001.

Herbert Fred Koller, 85, retiredpartial owner of Oregon Cedar,Seaside, Or., died Oct. 2 in Seaside.

He retired in 1990.

Robert Wade “Bob” Mosby, 87,retired West Coast lumber executive,died Oct. 28 in Sweet Home, Or.

During World War II, he servedwith the Army Air Corps in thePacific Theater.

He started his lumber career in1946, with Santiam Lumber,Lebanon, Or. He retired as an execu-tive with Louisiana-Pacific in 1992.

Guido Addiego, 69, owner of AllBay Mill & Lumber, AmericanCanyon, Ca., died Oct. 28 inVacaville.

He helped found the company in1984 and became sole owner in 2001,when his partners retired.

Jesus Maria Peña, 76, retired lum-beryard foreman for Big CreekLumber, Davenport, Ca., died Nov. 3in Santa Cruz, Ca.

A U.S. Air Force veteran, he spent35 years in the industry.

William Harold “Bill” Claussen,93, founder of several Cottage Grove,Or.-based forest products businesses,died Nov. 2 from complications ofpneumonia.

He started in the timber industry inOlympia, Wa., in 1948, relocating toCottage Grove in 1950. His business-es included W.W. Lumber Co., R&WTrucking, R&R Cedar Products, andClaussen Timber Products. He retiredin 1989.

Philip Davis, 94, longtime lumbersalesman in Oregon, died Oct. 16 inCollege Place, Wa.

After serving in the U.S. Army AirCorps during World War II, he brokeinto in the retail lumber business,working for Tum-A-Lum LumberCo., Pendleton, Hermiston and TheDalles, Or., followed by HillsboroLumber Co., Hillsboro, Or. He retiredin 1983.

J.W. Charles Jacobi, 91, founderof Jacobi Building Materials, CanogaPark, Ca., died Nov. 12 after a two-year battle with Alzheimer’s disease.

After serving as an Air Force pilotover Germany and Italy during WorldWar II, he graduated from USC. Heopened his own business selling usedbrick out of his garage until formallyestablishing Jacobi Building Materialsand settling at its current location in1959.

Lee Bun Colby Jr., 90, co-founderof Engineered Wood Products,Oroville, Ca., and Las PlumasLumber, Oroville, died Nov. 1.

After serving in the Marines during

Building-Products.com December 2013 The Merchant Magazine 27

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LOS ANGELES Hardwood Lumberman’s Club was out in force at its Nov. 14 dinner meeting at theRib Trader in Orange, Ca. (Front row, l-r) Walter Ralston, Alan Arbiso. (2nd row) Matt Barrass, PaulPendergast, Dan Bohannon, Jim Gaither, Bill Fitzgerald. (3rd row) Deonn Deford, Randy Porter,Dennis Johnston, Larry Mether, Walt Maas, John Banks, Charley James. (4th row) Dale Bohannon,Charley Bohnhoff, Tom Escherich, Steve Ondich, Marty Fox, Nathan Osborne, Rob Wilson, RandyWilson.

World War II and being awarded twopurple hearts, he entered the homebuilding industry. He headed severalconstruction companies while helpingto fund the lumber businesses.

Emmett Francis Birrer, 90, formersales manager for Gallatin LumberCo., Bozeman, Mt., died Nov. 6.

He served in the U.S. Navy duringWorld War II. He worked for Gallatinin the early 1960s and ownedThompson Floor Covering, Bozeman,from 1972 until selling the retail sideof the business in 1980 and concen-trating on commercial accounts untilretiring in 1989.

28 The Merchant Magazine December 2013 Building-Products.com

PICTURE THIS: After a long day’s work, you sink onto thecouch and turn on the television. As you flip through

the channels, you see a commercial for a new local restau-rant. Later, as you scroll through your Facebook newsfeed,you see that a friend has checked in at that same restaurant,posted a picture of his meal, and captioned it, “Delicious!Can’t wait to come back.” Which is more likely to makeyou reserve a table: the commercial or your friend’sendorsement?

If you’re like most Americans, you’re much more likelyto be influenced by your friends’ recommendations (even ifthey’re “just” online friends) than by ads. In fact, a recentNielsen report reveals that 92% of consumers trust recom-mendations from friends and family above all other typesof advertisements. And, they’re four times more likely tomake a purchase when referred by a friend.

Here’s the takeaway for businesspeople: Referrals are ahuge, sparkly, tied-up-with-a-bow gift—and if you aren’talready working to harness and maximize their power, it’spast time you started.

Businesses are so busy focusing their energy on acquir-ing new customers that they often neglect one of their mostvaluable resources: active referrers. Though this may be asmall percentage of your overall customer segment, settingup a basic program to support them and encourage theiractivity is well worth your time and resources.

In fact, if your company is delivering value to your cus-tomers, you probably already have active referrers—even ifyou aren’t aware of them. These people are posting positive

reviews about your business all over the social media land-scape and bragging on you to their friends simply becausethey love what you offer and/or how well you treat them—in other words, because you’ve earned their loyalty.

Harnessing that loyalty is a no-brainer. And here’s thething: These active referrers often don’t expect or evenwant incentives for referring others. Sure, you can offerincentives, but don’t think you have to break the bank inorder to get referrals from current customers. In fact, beforeyou spend the time designing a referral program based onmonetary rewards, test out how willing your customers areto simply help spread the word.

If you’re ready to harness the power of active referrers,here are seven tips for designing offers that continue to nur-ture your most valuable customers:

Be an equal-opportunity rewarder. Reward the refer-rer and the referee. This should be an easy modification ifyou already have a new customer acquisition deal in place.

Even if you don’t have a formal offer that rewards theexisting customer for bringing in new business, find a wayto say thank you. Put a note on that person’s account togive them a little something the next time they come in.The gift could be as small as a coupon for purchase, a smallfreebie, or a gift card for future service.

Don’t stop playing after you score the first goal.Provide an incentive to get the referred customer back asecond time as a part of the referral program.

It’s the same as when you’re designing deal site promo-tions or any other new customer acquisition program.Building in a strategy that incentivizes that new customerto return a second time provides you with additional leewayand a captive audience. New customer acquisition throughyour referral channel is no exception to this rule.

Be magnanimous with merchandise. Reward cus-tomers with retail products instead of services offered toincrease perceived value. Offering retail items is a greatway to increase perceived value due to the built-in mark upfrom cost.

Use gift cards to your advantage. Encourage gift cardpurchases into your customer base as a key driver of refer-ral business. This is a great way to broaden the scope ofyour actively referring customer base. For those customerswho are evangelists for your business in the offline oronline world, gift cards are an easy way for them to intro-duce your business to friends and family.

If you don’t have a solid handle on precisely which cus-tomers are referring business to you, putting an aggressivegift card promotion out there is a great first step. For track-

Rallying referrals

MANAGEMENT TipsBy Annie Tsai

Building-Products.com December 2013 The Merchant Magazine 29

ing purposes, you can append the gift cards with someinternal coding; if you’re printing them out, simply use adifferent color or numeric identifier for easy coding. Thisway, you can track gift cards as they are redeemed and willknow over time which promotions generate the highest newcustomer referral rate. You’ll also know exactly who isgifting your gift cards, so make sure to say thank you withan extra something the next time that person returns to yourbusiness.

Go old school—distribute business cards! Don’t dis-count the power of handing out some business cards to yourfavorite customers. Asking for the referral is often the mostdifficult part of building a referral program; however, youneed to educate your customers on how they can help sup-port your business—especially in the beginning.

Even if you don’t establish a formal referral program,you can use business cards as an easy conversation starterhere. Simply hand the customer three business cards at thepoint of sale and say, “I’d really appreciate it if you couldlet a few friends know about the great service you receivedtoday.”

Harness the power of “In their own words.” Useexisting customer recommendations and testimonials.

If you have a recent customer review that emphasizeshow amazing a product or service is, turn that recommen-dation into a referral engine by pitching your offer as “cus-tomer approved” and share their story. You can go severaldirections here; a customer video testimonial, a before andafter photo, or a snapshot of their post-visit review are alleffective ways to draw new business from your currentfans.

Ask customers to bring a “plus one.” Create referrers

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using “you and a friend” deals. This is a great approach forbusinesses for two reasons. First, it turns an existing cus-tomer into a returning customer. Secondly, it encouragesthat existing customer to bring someone completely new tothe business.

We’ve all heard the adage “The best customers are refer-rals”—and it’s true. The great thing about this type of cus-tomer is that you already know that your existing customeris reliable and operating in potentially socially savvy space.And since they’re a return visitor, you know they alreadyenjoy being a patron of your business. By posting thesekinds of deals, you increase your chances of getting morecustomers like the ones you already have.

“Bring a friend” deals also benefit businesses becausethey give them a very clear indication of how effective theirexisting customer base can be at driving new patronage onthe business’s behalf. Every once in a while—perhaps oncea quarter—it’s always a good idea to offer a “bring afriend” deal and test word-of-mouth willingness and con-

(Please turn to page 35)

30 The Merchant Magazine December 2013 Building-Products.com

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

SPECIAL QUOTES

KAHLE On SalesBy Dave Kahle

fill in a couple of hours a dayfor a customer service personwho has taken a maternityleave. “The salesman can do it,”the branch manager thinks in aflash of inspiration. “He’s gottime.”

Presto. The problem issolved.

But, alas, the couple of hoursa day turn into a half day, andsometimes more, as the sales-person gets caught up in react-ing to inbound calls. Thoseproactive sales calls that shouldhave been made in that time arenever made. The silent costs ofthat decision and the inevitable“Other Stuff Expansion” beginto be felt months down the road.

Or, you have a sales managercheck out that promising newproduct line, or write that newprocedure because he/she“understands that,” and, ofcourse, you’re too busy.

Or, you have inside salespeo-ple who also answer the phone andrespond to inbound calls, and you areconstantly frustrated that they don’tmake enough outbound calls.

The examples can go on and on. A

I RECENTLY had a conversationwith a sales manager. The

gist of it is this: he has so manycompeting responsibilities, it isdifficult to spend time with hissales team.

Sound familiar? It should. Ihave heard that idea expressedcountless times by executives,sales managers, and salespeople.In one way or another, salesprofessionals find themselvesincreasingly occupied by trivialtasks at the expense of theimportant ones.

It is an epidemic that is rag-ing unabated in our economy. Itrenders people unproductive andorganizations operating at afraction of their potential. Itoften comes from what I call“other stuff.” Over the years, Ihave seen this phenomenonbecome so pervasive that yearsago I labeled it and gave it itsown acronym: OSE, for “OtherStuff Expansion.”

The rule is this: When you give aproactive salesperson “other stuff” todo, the other stuff will always expand,taking more in time and energy thanyou anticipated and rendering the

proactive sales efforts to an unaccept-able smaller part of the person’slabors.

Here’s how this looks in practice.A branch manager needs someone to

When multi-taskingturns into loss of focus

Building-Products.com December 2013 The Merchant Magazine 31

quick perusal of your sales efforts willunearth dozens more, I’m sure.

There’s a simple explanation forthis. Making proactive sales calls is ahigh risk effort that requires initiative,motivation and self-discipline. Inother words, it’s hard to do. That’sone of the reasons why most peoplearen’t salespeople. On the other hand,taking care of “other stuff” is usuallylow-risk, easier and somewhat fulfill-ing. And, it keeps you busy.

That’s why “when you give aproactive salesperson ‘other stuff’ todo, the other stuff will always expand,taking more in time and energy thanyou anticipated and rendering theproactive sales efforts to an unaccept-able smaller part of the person’slabors.” It’s the law of OSE.

In a bigger picture, OSE for salespersonnel is just the specific applica-tion of a deeper rule. That rule is this:When you give someone something todo, you are, by that act, preventinghim/her from doing something else.Or, to be more personal, when weaccept the responsibility for doingsomething, we, by that action, elimi-nate the possibility of our doingsomething else.

What sounds blatantly obvious isopen reflection, so often violated thatit has become one of the major pro-ductivity killers and one of the mostcommon mistakes made today bymanagers and self-managers of allkinds.

Here are two solutions:(a) If you have given—or are

tempted to give—anyone who hasproactive sales responsibilities otherthings to do, don’t! There is always agreater cost than meets the eye. If youare a salesperson who has other stuffto do, try to hand it back to your man-ager or pass it on to someone else.

Be very careful about givingresponsibilities, or accepting responsi-bilities, that detract from your corefocus. In today’s hectic, multi-taskingworld, it is more powerful to say “no”than it is to say “yes.”

(b) Okay, you can’t do that. Forwhatever reason, your sales personnelmust also do other stuff. Plan B.Keep the division between the twosets of competing responsibilities asclean and sharp as you can. The otherstuff should be well defined, haveclear guidelines for completion, andbe limited to a specific period of time.

For example, don't say this: “John,we want you to do this other stuff.”Instead say, “John, I’d like you to

spend a half-day every other weekdoing this other stuff.”

By keeping the divisions clearbetween the competing responsibili-ties, you limit the damage done byother stuff expansion.

In the long run, it’s those organiza-tions and individuals who focus on

the core tasks and don’t diffuse theirefforts who succeed.

– Dave Kahle is a sales trainer, pre-senter, and the author of a free weeklyezine and 10 books, including his latestHow to Sell Anything to AnyoneAnytime. He can be reached at [email protected].

32 The Merchant Magazine December 2013 Building-Products.com

NEW Products

Easier-to-HandleTrimboard

Versatex has added three easi-er-to-handle sizes to its line of 1-1/2” thick Versatex Max extrud-ed cellular PVC sheets.

The new sizes—2”x8”, 2”x10”,and 2”x12”—were developedbased on feedback from develop-ers.

Both the old and new sizes aredesigned to eliminate or reducelamination steps during fabrica-tion of custom mouldings, rails,pergolas, and corbels.

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Prefab BalconiesWahoo Complete is a prefabri-

cated aluminum balcony for usein multi-family residential com-munities.

Made from 50% post industri-al-post consumer scrap alu-minum, it is fireproof, powdercoated, and marine grade.

Two walking surfaces areavailable: Wahoo’s AridDek alu-minum decking or DryJoist struc-tural joists with traditional deckboards.

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Concrete Slab SealDependable’s Vaporseal HM is

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Waterproof Roofs ina Flash

The new Kemperol Flash Packfrom Kemper System America isan easy-to-use solution for water-proofing and repairing leaks inroofing and flashing.

Each kit contains everythingneeded to cover, re-flash, orrepair up to 25 sq. ft. The fullyreinforced resin system providesfull closure to flashings and roofpenetrations, eliminating theneed for pitch pockets.

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Post Sleeve KitsFiberon’s new Horizon 6”x6” post

sleeves allow for angled railing cuts and4”x4” wood inserts.

Available in white, the sleeves mea-sure 5-3/4”x5-3/4”x48”.

Each kit also includes adaptors, postcap, and base moulding.

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Building-Products.com December 2013 The Merchant Magazine 33

Speedier Deck InstallationsThe Speedeck decking gauge can position up to five

deck boards with perfect 1/4” gaps for quicker andeasier installations.

Manufactured with high-density polyethylene, thetool reduces installer fatigue and keeps hands safelyaway from nail guns.

Five sizes—4”, 5-1/4”, 5-1/2”, 6”, and 8”—accom-modate a range of boards sizes.

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Underlayment That SealsUltra HT Wind & Water Seal from MFM Building

Products is a self-adhering roof underlayment with a90-day UV-exposure rating.

The product is engineered as a whole-roof underlay-ment for use with asphalt shingle and metal roofingproducts.

A split-release liner can be used in valleys, ridges,around chimneys, and at eaves for protection againstice dams, wind-driven rain, and water penetration.

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Dimension LumberTreated ProductsDomestic

TimbersGreen & K.D.

Export

Manke Lumber Company is family-owned and has been serving the needsof the lumber industry since 1953. Wetake pride in milling and stocking quali-ty lumber in a full range of commoditysizes and larger dimension timbers. Wealso answer your market needs for awide variety of treated lumber products. Our forest products are milled from

carefully harvested Northwest treesready for distribution to you—on timeand at the right price.Located in the Port of Tacoma, we

have ready access to deep water ship-ping, rail heads or trucking terminals forlonger haul loads. Manke operates itsown fleet of trucks and is at your ser-vice for straight or mixed loads bytruck, rail or sea.We manufacture primarily Douglas fir

and western hemlock, including• 2x4 thru 2x12, Lengths 8-20’• 3x4 thru 3x12, Lengths 8-26’• 4x4 and wider, Lengths 8-26’• 6x6 and wider, Lengths 8-26’• 8x8 and wider, Lengths 8-26’• Timber sizes up to 12x12

Manke Lumber CompanyCall 1-800-426-8488

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

www.mankelumber.com

WHAT YOU WANT.WHEN YOU NEED IT.

34 The Merchant Magazine December 2013 Building-Products.com

The Look of Rock WallsSimTek decorative rock walls offer beauty, privacy,

and noise reduction for residential, commercial andinstitutional landscapes.

Constructed of proprietary polyethylene plastic andreinforced with galvanized steel, SimTek walls areresistant to impact, organic processes, ultraviolet light,almost all chemicals, termites, and other insects.

The modular design enables a seamless transitionbetween panel sizes. Six colors are available, in 3’, 4,6’, and 8’ heights.

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Easy-to-Install StoneClipStone from Environmental StoneWorks is a

mortarless stone veneer product that creates the lookof natural stone.

The product can be screwed directly to sheathing orwalls with an embedded mounting clip. A lapping-down design allows stones to fit together tightly, in allfour directions.

Universal corners and accessories are also available.

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Easy TarpingPowered Truck tarping from U.S. Tarping Systems

minimizes the time-consuming and dangerous task oflaying out tarps on top of loads.

The product enables a single user to tarp a loadwithout leaving the ground. The system can beinstalled as a stand-alone building or be incorporatedinto existing structures.

USTARPINGSYSTEMS.COM(800) 523-5287

Modified Wood WrapsNew post wraps from

Perennial Wood match thebeauty and durability of thecompany’s modified wooddecking and porch flooring.

The wraps provide a finisheddimension of 6”x6” to tradition-al 4”x4” posts.

They are available uncoatedor factory-finished in cedar,mahogany, and Cape Cod gray.

PERENNIALWOOD.COM(800) 530-7496

Cost-Effective WallSheathing

Rboard from Atlas Wall is acost-effective, energy-efficientsheathing material for exteriorwall assemblies.

Constructed of rigid foam,the product has a non-reflec-tive, glass-reinforcement faceron both surfaces.

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ATLASROOFING.COM(800) 388-6134

Building-Products.com December 2013 The Merchant Magazine 35

From everyone atFontana Wholesale Lumber Inc.

P.O. BOX 1070 – 15500 VALENCIA AVE., FONTANA, CA 92335PHONE 909-350-1214 – FAX 909-350-9623

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ASSOCIATION Update

Western Wood Preservers Insti-tute welcomed Dwayne Carter,Brooks Manufacturing, Bellingham,Wa., as its new president during itsannual meeting in San Diego, Ca.

Joining him on the board are newv.p. John Davis, Pacific WoodPreserving, Phoenix, Az.; secretaryPatrick Tymkiw, Bell Lumber & Pole,New Brighton, Mn., and treasurerJerry Farley, JH Baxter & Co., SanMateo, Ca.

Western Wood Products Associ-ation has reserved March 2-4 for itsannual meeting at Embassy SuitesDowntown, Portland, Or.

APA–The Engineered WoodAssociation drew nearly 400 toHuntington Beach, Ca., for its annualmeeting (see p. 14-15 for photos).

Safety Awards were presented toRobert Fouquet, Ainsworth; GregAnthony, Boise Cascade; MikeDawson, Norbord; Tom Temple,Potlatch; Terry Secrest, RoyOMartin,and Steve Doffitt, LP.

The APA board of trustees also

elected two APA staff members toserve as officers of the association.Sonya Bachlmayr, financial & admin-istrative services director, was electedtreasurer, and Marilyn Thompson,market communications director, isnow corporate secretary.

During the golf tournament, ScottPoole, RoyOMartin, won $10,000 forsinking a hole-in-one.

Rallying Referrals(Continued from page 29)

version within your currently activecustomer base. Of course, in order toleverage the “bring a friend” deal toinfluence the ‘now’ sale, the dealmust offer a higher discount whenpurchases or appointments are madeat the same time. The customer is ableto take advantage of a group discount,or better incentive, and the business isable to measure how effective word-of-mouth is in bringing on new clientsin this manner.

Remember, if you’re doing yourjob well, customers will want to tell

their friends and family about thegreat new business or service thatthey’ve found. Choosing to spend alittle time and energy actively con-verting those customer fans intoactive referrers is a no-brainer. Andthe best news of all is that once youhave a successful referral program inplace, it will practically run itself.One referral will lead to the next,which will lead to the next, and so on.When you put in the effort to cultivateyour active referrers, they can becomeone of the most profitable segments ofyour customer base.

And keep in mind that whileincreasing the odds that potential cus-tomers will make a purchase is one ofthe biggest benefits of utilizing activereferrers, it isn’t the only one. Thecustomers your active referrers bringin are also more likely to work withyou if they encounter a problem dur-ing their purchase experience—andthey may also be more apt to tell oth-ers about their (hopefully positive)experience.

– Annie Tsai is chief marketing officerat Demandforce and the author of TheSmall Business Online MarketingHandbook: Converting Online Conver-sations to Offline Sales.

36 The Merchant Magazine December 2013 Building-Products.com

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BPDBuilding Products Digest

HELP WANTED

FOR SALE

WEST COAST INDUSTRIAL LUMBER iscurrently seeking experienced lumber broker/salespeople for domestic sales. The candidatewill become part of a team with responsibilityfor purchasing and sales. Would like qualifica-tions to include: Existing network of businessrelationships and following among customersand/or sawmills. Please send resume in confi-dence to [email protected]. Please refer-ence “MERCHANT AD” in the subject line. Ormail to West Coast Industrial Lumber Inc.,1795 Willamette Falls Dr. #200, West Linn, Or.97068.

RELIABLE WHOLESALE LUMBER,Huntington Beach, Ca., is seeking an experi-enced moulder operator. This is a union posi-tion with full benefits. Schedule is M-F 6:30 –3:00, some weekends. Contact RandallRichards, [email protected] or (714)849-2211.

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Building-Products.com December 2013 The Merchant Magazine 37

REEL

REGALCUSTOMMILLWORK

1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806Fax 714-630-3190

(714) 632-1988 • (800) 675-REEL

3518 Chicago Ave., Riverside, Ca. 92507(909) 781-0564

301 E. Santa Ana St., Anaheim, Ca. 92805(714) 632-2488 • Fax 714-776-1673

Reel Lumber Service and Regal Custom Millwork are affiliated companies

LUMBERSERVICE

www.reellumber.com

Specialists inHardwood Milling

• Oliver Straitoplaner

• Straight Line & Multiple Rips

• Stickers

• Newman Straight Knife Planer

Happy

Holidays!

DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

Southern California Hoo-Hoo – Dec. 11, meeting, Anaheim HillsGolf Course, Anaheim, Ca.; (760) 324-0842; hoohoo117.org.

Oregon Wood Innovation Center – Dec. 16-17, annual wood prod-ucts manufacturing quality control workshop, Oregon StateUniversity, Corvallis, Or.; oregonstate.edu/conferences.

Portland Build, Remodel & Landscape Show – Jan. 3-5, OregonConvention Center, Portland, Or.; (800) 374-6463; www.home-showcenter.com.

Seattle Remodeling Expo – Jan. 3-5, Washington State Conven-tion Center, Seattle, Wa.; (800) 374-6463; homeshowcenter.com.

Colorado Springs Home Building & Remodeling Show – Jan. 10-12, Norris-Penrose Event Center, Colorado Springs, Co.; (800)374-6463; www.homeshowcenter.com.

San Diego Home Show – Jan. 10-12, Convention Center, SanDiego, Ca.; (888) 433-3976; www.acshomeshow.com.

National Retail Federation – Jan. 12-15, convention & expo, NewYork, N.Y.; (800) 673-4692; www.nrf.com.

Black Bart Hoo-Hoo Club – Jan. 15, industry night, Broiler Steak-house, Ukiah, Ca.; (707) 621-0485; blackbarthoohoo181.org.

Truck Loggers Association – Jan. 15-17, convention & show,Westin Bayshore, Vancouver, B.C.; (604) 684-4291; www.tla.ca.

Humboldt Hoo-Hoo Club – Jan. 16, crab feed, Elks Lodge, Eureka,Ca.; (707) 601-9128.

Western Pallet Association – Jan. 17-21, annual meeting, RanchoLas Palmas Resort, Rancho Mirage, Ca.; (360) 335-0208;www.westernpallet.org.

Do it Best Corp. – Jan. 20-22, winter conference, Walt DisneyWorld Swan Resort, Orlando, Fl.; (260) 748-5300; doitbestcorp.

Portland Renovation & Landscaping Show – Jan. 24-26, PortlandVeterans Memorial Coliseum, Portland, Or., (800) 374-6463;www.homeshowcenter.com.

Surfaces – Jan. 27-30, Mandalay Bay Convention Center, LasVegas, Nv.; (972) 536-6358; www.surfaces.com.

National Association of Wholesaler-Distributors – Jan. 28-30,executive summit, Fairmont, Washington, D.C.; (202) 872-0885;www.naw.org.

California Forestry Association – Jan. 29-30, annual meeting,Marriott, Napa, Ca.; (916) 444-6592; www.foresthealth.org.

International Builders Show – Feb. 4-6, sponsored by NationalAssociation of Home Builders Las Vegas Convention Center, LasVegas, Nv.; (800) 368-5242; www.buildersshow.com.

National Kitchen & Bath Association – Feb. 4-6, annual show, LasVegas Convention Center, Las Vegas, Nv.; (800) 843-6522;www.nkba.org.

Willamette Valley Hoo-Hoo Club – Feb. 7, crab feed, Shadow HillsCountry Club, Junction City, Or.; (541) 688-6675.

Northern Utah Home Show – Feb. 7-9, Davis Convention Center,Layton, Ut.; (888) 433-3976; www.acshomeshow.com.

Los Angeles Home Show – Feb. 7-9, Los Angeles ConventionCenter, Los Angeles, Ca.; (888) 433-3976; www.acshome-show.com.

San Mateo Home Show – Feb. 7-9, San Mateo Event Center, SanMateo, Ca.; (888) 433-3976; www.acshomeshow.com.

Western Building Material Association – Feb. 12-14, annual con-vention, Tulalip Resort, Marysville, Wa.; (888) 551-9262;www.wbma.org.

Southern California Hoo-Hoo Club – Feb. 19, meeting, San DimasGolf Course, San Dimas, Ca.; (760) 324-0842; hoohoo117.org.

WholesaleIndustrial Lumber

• Pine

• Plywood

• Mouldings

• Hardwood Lumber

38 The Merchant Magazine December 2013 Building-Products.com

ADVERTISERS IndexFor more information on advertisers, call them

directly or visit their websites [in brackets].

AERT [www.moistureshield.com]......................................Calendar 14

Arch/Lonza [www.wolmanizedwood.com]..........................Calendar 4

Cal Coast Wholesale Lumber ........................................................21

C&E Lumber Co. [www.lodgepolepine.com] ...............................31

Capital [www.capital-lumber.com]..........................................27, 31

Capitol Plywood [www.capitolplywood.com] ....................Cover III

C.T. Darnell Construction [www.ct-darnell.com]........Calendar 20, 26

Diacon Technologies [www.diacon.com] ...........................Calendar 6

Filler King Co. [www.fillerking.com] .............................................27

Fontana Wholesale Lumber [fontanawholesalelumber.com].....35

Forest2Market [www.forest2market.com].........................Calendar 26

Great Southern Wood Preserving [yellawood.com] ........Calendar 12

Huff Lumber Co. .............................................................................25

Jones Wholesale Lumber [www.joneswholesale.com] ........23, 28

Kelleher Corp. [www.kelleher.com] ......................................Cover I

Keller Lumber Sales .......................................................................31

Manke Lumber Co. [www.mankelumber.com].............................33

Norman Distribution Inc. [www.normandist.com].......................29

North American Wholesale Lumber Assn. [nawla.org] ...Calendar 22

NyloBoard [www.nyloboard.com]........................................Calendar 8

Parr Lumber [www.parrlumberchino.com] ..................................24

Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....15

Peterman Lumber Inc. [www.petermanlumber.com] ..................19

Plycem USA [www.plycemtrim.com].................................Calendar 16

PrimeSource Building Products [www.primesourcebp.com] ....29

Probyn Group [www. probynltd.com].............................................7

Redwood Empire [www.redwoodemp.com] .....................Calendar 24

Reel Lumber Service [www.reellumber.com] ..............................37

Rosboro [www.rosboro.com] ........................................................22

Roseburg Forest Products [www.roseburg.com] .......................17

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

Southern Forest Products Association [www.sfpa.org]..Calendar 18

Stimson Lumber Co. [www.stimsonlumber.com] .........................5

Swanson Group Sales [www.swansongroupinc.com] .....Cover IV

Taiga Building Products [www.taigabuilding.com] ....................20

Universal Forest Products [www.ufpedge.com]............................3

Westbury Aluminum Railing [westburyrailing.com] ........Calendar 10

Yakama Forest Products [www.yakama-forest.com]....................3

IDEA FileBundling Up for Charity

Remembering that it is better to give than toreceive, a Midwestern dealer brings warmth and good-will to a community—and itself.

Tri-Creek Lumber & Hardware, Lowell, In., hassponsored a winter coat drive every December for thepast six years. As of last year, more than 2,300 new andgently worn winter coats—plus a large number of newhats, gloves and scarves—have been donated. Theitems are distributed to local churches and a nearbyshelter that works to alleviate family violence.

Coats of all sizes are welcomed, but ones for school-age children are especially needed. “Donations forthese sizes can be very low, but requests for them arevery high,” says employee Nancy Panozzo, who orga-nizes the annual drives. She says that one customer ofthe store comes in every year to ask what’s needed—and then goes out and buys the requested items.According to Panozzo, it’s one way for that customer—and many others who participate in the drive—to giveback to the community and honor help they oncereceived themselves.

Tri-Creek requests that donated items are clean and ingood repair, because many recipients have no way todo that themselves. If good quality items that needrepair are donated, store employees pitch in to help.

Panozzo says that the idea for the first coat drivecame from an employee. Advertising takes the form offree public service announcements in local newspapersand on local radio programs. She also hangs informa-tion flyers in the showroom, although, after six years,it’s mostly word of mouth.

Since donated items are collected in the back of thekitchen and bath design center, customers who neverventure outside the hardware area get a tour of this sideof the store. Some have expressed surprise that Tri-Creek has such a large, well-stocked showroom.

“We think it’s wonderful that people take the timeand money to shop for new coats, hats and scarves,”says Panozzo. “It’s a great way to celebrate the spirit ofthe season.”

TRI-CREEK LUMBER’S ANNUAL COAT DRIVE

Hardwood & Softwood LumberAshAlderApitongAromatic CedarBirch–Natural, Red & WhiteCherryMahoganyMapleOak–Red, White, Rift Red & WhitePecan/HickoryPoplarSteamed BeechSugar Pine–#2 & #3 CommonClear Radiata PineTeakWalnut

* Other species available by special order

Hardwood PlywoodAlderAshApple PlyAromatic CedarBaltic BirchBeechBending-MahoganyBirch–Natural, Red & WhitePrefinished BirchCherryKnotty CedarMahoganyMaple–Natural & WhiteOak–Red, White, Rift Red & WhiteQuartered Red & White OakPecan/HickoryPine–Knotty & ClearRibbon SapeleTeakWalnutV.G. Fir

Exterior SidingsBreckenridgeDuraTempFir-Select, Premium & ClearKnotty Cedar

PlywoodsABX, ACX, AB & AC SuperplyBBOES, BC, CCX P&TS, CDXSt 1, T&G’s CCXShop GradesLong Lengths & Wide WidthsMDO’s & HDO’sPre-Primed, Prefinished MDOSkidGuard, Tuf-TredFire-Retard TreatedPressure Treated for RotMedium & High Density FormSturdi-FloorMarine-AB Fir & Mahogany

Specialty ItemsCedar Closet LiningSound BoardAsphalt Impregnated BoardWhite Building BoardChopping BlocksMoulding & Millwork Items by Special OrderVeneers, NBL & 10 MilFRP Board & MouldingsPrefinished Paneling –States, TrimacR-Max, Foamular 150 – 250White InsulfoamTile Board, Dry Erase Board, ChalkboardHardboards, Pegboards, Temp 2-Side SmoothWhite, Black & Almond PegboardMedex, Medite FR, ExtiraMDF–Formaldehyde FreeLiteweight MDF, Medite 3D, Arries MDFMDF, ParticleboardUnderlayment & IndustrialMelamine, Vinyl & SlatwallRedi-shelf, PB & Melamine ShelvingMelamine Edgebanding TapeCombination PanelsDurock & Fiberock Fire-Rated Particleboard

www.capitolplywood.com

Season’s Greetings from

160 Commerce Circle, Sacramento, Ca. 95815 • Fax 916-922-0775(916) 922-8861 • (800) 326-1505

1955 Timber Way, Reno, Nv. 89512 • Fax 775-329-3873(775) 329-4494 • (800) 326-4494

Product • Performance• Personal Service

The MERCHANT Magazine