Building Products Digest - May 2011

THE INSIDE TRACK TO DECKING SALES � NAWLA SPECIAL ISSUE

MAY 2011

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

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May 2011 �� Volume 30 �� Number 3

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Special Features8 MARGIN BUILDERSFOUR WAYS TO CAPTURE A LARGERSLICE OF THE DECKING MARKET

10 FIRST PERSONDO YOUR HOMEWORK: PUT COMPOSITEDECK INNOVATIONS TO THE TEST

12 FEATURE STORYNORSE TREATER INTRODUCES ALCOHOL-INFUSED SOUTHERN PINE DECKING

29 SPECIAL FOCUS: NAWLA 201124-PAGE NORTH AMERICAN WHOLESALELUMBER ASSOCIATION SPECIAL SECTION ON• NEW PROGRAMS • INDUSTRY FORECAST• CREDIT OUTLOOK • SAFE SHIPPING• GROOMING TALENT • TRADERS MARKET• SALES PRESENTATIONS • BAD ADVICE

56 PHOTO RECAP: LATTEXAS DEALERS’ 125TH ANNUAL EXPO

59 PHOTO RECAP: SFPASOUTHERN PRODUCERS’ SPRING MEETING

In Every Issue6 TOTALLY RANDOM

14 COMPETITIVE INTELLIGENCE

16 OLSEN ON SALES

18 GREEN RETAILING

26 MOVERS & SHAKERS

28 IN MEMORIAM

50 KAHLE ON SALES

53 NEW PRODUCTS

60 CLASSIFIED MARKETPLACE

61 DATE BOOK

62 IDEA FILE

62 ADVERTISERS INDEX

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TOTALLY RandomBy Alan Oakes


What’s workplace drama costing you?www.building-products.com

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LAST NIGHT, I heard someone on television say that there is something in the air thatjust does not feel right or good. It is almost like we are waiting for something bad

to happen. Are we really all in such a lousy mood?Have you noticed how stressed and burned out people seem to be? Not only do we

have to contend with customers who have shorter fuses than in the past and who gooff the handle at the slightest thing, but internally where people issues seem to be onthe increase, the level of bickering and in-fighting also seems on the increase.

It is clear that with the housing market as it has been for three or more years now—company cutbacks, stagnant pay, staff reductions including total divisional and com-pany closedowns—that there is a sense of fear that creates an atmosphere of distrust inmany organizations. Those lucky to be left in a job are covering the work of lost col-leagues, mistakes happen, tension builds, the finger pointing increases and people startpassing the buck. As pressure and tensions increase, so does the drama in the work-place. People are just worried.

Of course, it does not take any of the above to create a hostile working place. Thereare people who can create drama any time of the day. There always seems to be aqueen or king bee who is planning unrest, hiding something, not talking this week,creating issues for other employees, or working deviously and politically to createdivision. They are the ones who we all seem to tip-toe around so that they can managetheir kingdom.

I have seen drama created by bosses who humiliate their staff in front of others. Ihave worked for companies where change was fought tooth and nail by entrenchedstaffers pitting one side against the other. And don’t you just love those meetingswhere everything is taken personally, where you can cut the air with a knife, wherethere are clear power struggles marked by complaining and whining. And yet manage-ment does not do anything about it, as often the manager is just too scared to.

Now for sure, there will always be some drama—it is part and parcel of the work-place environment, and it is just as likely to happen at the management level as at thestaff level. But when drama takes the place of work, energy and focus are lost.Productivity takes a swallow dive, customers get lost, and it just feels downrightuncomfortable to work in that environment.

I have worked in companies where power and political struggles were the normand it was just mentally draining. It is estimated that drama costs the U.S. economyover $3 billion a year in lost productivity. But when you look at it on a personal level,it could be costing you a pay increase, a promotion, and, more importantly, yourhealth, happiness and well being.

While unpleasant to deal with, not only do you have to recognize the drama, butyou have to either take yourself out of it, or jump in with two feet and try to solve theissue. Workplace conflict resolution is not easy. I have had to deal with it many timesand it should not be personal. There is normally a clear black or white. Even withshades of gray, there are ways to handle it! The important point is to remain fair andnon— political. But leaving the issue to fester only fuels thegossip mongers, increases the level of complaints internal-ly (and maybe externally), creates low morale, and opensup power struggles. More importantly, it takes precioustime and resources away from doing what everyoneneeds to be doing—focusing on growing the business. Ihave also learned to get rid of those who are permanentlyin the middle of it—manager or employee.

We have too much too worry about these days.None of us should walk on egg shells everywork day. Our companies deserve better, andso do we. I recently heard a saying thatEuropeans work to live, while Americanslive to work. If we do in fact live to work,let’s make those days fun again and enjoythe major part of our day.

Alan Oakes, [email protected]


MARGIN BuildersBy Brent Gwatney, MoistureShield

4 ways to capture moreof the decking marketWATCHING THE HOUSING market’s

slow recovery is like rooting foryour favorite underdog sports team:the constant hope for success is punc-tuated by brief triumphs that are soondashed by the latest setback. Howmuch more can dealers and builderstake? Fortunately, one area that’slooking up is decking.The U.S. decking products market

will grow 2.7% per year through 2014and be valued at $6.2 billion, accord-ing to the Freedonia Group.Composites will drive approximately70% of the growth in lineal feet. As builders begin looking for the

most profitable decking options, thereare several actions dealers can take tohelp boost sales and revenues:

Emphasize PerformanceAlthough pricing still plays a

strong role in building material choice,performance attributes often trumpprice. From a survey of builders, glob-al management firm LEK Consultingfound that “despite price pressure,durability remains the most importantproduct selection factor as contractorswant to prevent costly customer call-backs and avoid added or unexpectedinstallation time driven by inferiorproducts.” In the case of decking, wood-plas-

tic composites provide a good oppor-tunity for dealers to showcase durabil-ity. Manufacturers anticipate that com-posites will last two to three timeslonger than wood decking, dependingon the product. Underscoring this,some composites are available withlimited warranties, up to 20 years tolifetime. A strong warranty providesthe builder with an effective sellingpoint to homeowners, giving them

peace of mind that their deck invest-ment will last for many years.In addition, some composite deck-

ing manufacturers use productionprocesses that totally encapsulate thewood fibers in plastic. Such materialsresist moisture and insect damage, andbuilders also can install them withdirect ground or water contact.These performance features pro-

vide a way to sell higher-value materi-als to builders who have traditionallyused wood decking. And, given thebreadth of composite options avail-able, there isn’t necessarily a largejump in price for greater product dura-bility and longevity. Composite deck-ing manufacturers provide a range ofproduct lines, from entry-level materi-

als to higher-end decking with special-ty features such as additional colorchoices or enhanced stain and faderesistance. This variety enables a deal-er’s sales staff to best target a compos-ite product to each builder’s needs.

Bundle Value-AddedComponentsDealers know that offering combi-

nation deals on various materials canbe a good way to boost sales. It’s the“would you like fries with that?”approach, but taken to a higher levelof sophistication.When selling deck boards, a natural

extension to the package is offeringthe builder complementary railingcomponents. Homeowners increasing-

COMPOSITE DECKING with fully encapsulated wood fibers can withstand direct ground and watercontact, plus resist resist moisture, insects, and decay.

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Building-Products.com May 2011 � Building Products Digest � 99

ly value railing, which helps drive overall growth in deck-ing material demand. Freedonia’s deck report points outthat “many homeowners will install additional railings andother accessories to create separate areas for dining andentertaining, or to add safety features to prevent falls bysmall children or older adults.” It’s all part of the greaterpopularity of outdoor living spaces.As with wood, composite decking is available with

matching posts, post caps, rails and balusters. In someinstances, dealers may also wish to package outdoor light-ing or sound systems with the decking and railing—espe-cially for railing components that have hidden grooves orchannels for wiring.Fasteners provide another potential bundling opportuni-

ty. Builders may not perceive a strong benefit if the pack-aged item is just deck screws, but offering them a deal on ahidden fastening system can provide a cost-effective wayfor them to give their customers a deck with a higher-endfinish.

Showcase Design FlexibilitySince many homeowners are interested in decks that

reflect their unique tastes, dealers can help builders achievethis by offering a wide selection of decking colors and pat-terns. Composites are available in a multitude of colors:wood hues such as cedar, walnut, tiger wood andmahogany, as well as grays, earth tones, and other tints.Builders can readily mix and match colors of deck boardsand/or railing components to create interesting patterns.Composites also come in a variety of shallow- and deep-

embossed patterns to simulate the look of wood grain. Thisfeature can be an important selling point to builders orhomeowners who value the appearance of traditional wooddecking.Builders can use curved deck, stair, rail, and trim ele-

DECK BUILDERS can customize designs with stairs, trim and railings.

ments to further expand the designs they offer their cus-tomers. While wood can be challenging to bend dependingon the species and the nature of the application, with somecomposites, builders can heat the material and readily forma variety of shapes.

Highlight Green AttributesIn some markets—and frequently with higher-end

homes—green features are important to homeowners.Although environmental attributes alone usually do notdrive product buying decisions, they can be an importantdifferentiator.One of the primary reasons demand is growing for com-

posite decking is its green features. However, not all com-posites are equal in this regard. While some include little orno recycled materials, brands are available with high totalrecycled content. This can include both pre- and post-con-sumer content for wood fiber and plastic.There are two key selling points dealers can make for

high-recycled content composite decking: (1) it divertslarge quantities of waste from landfills, and (2) it can helpbuilders earn green project ratings under popular programslike LEED for Homes.In addition, your decking materials manufacturer may

offer incentives or dealer marketing tools. Among these arerebate programs, customer leads and referrals, technicalsupport and training, and special offers. Contact them forinformation on how they can help support your business.

– Brent Gwatney is vice president of sales and marketing forcomposite decking producer MoistureShield, Springdale, Ar.Reach him at [email protected] or (866) 729-2378.

What to Expect in DeckingU.S. demand for decking will revive from the 0.6% annual

drop in 2004 to 2009 to increase 2.7% per year and reach 3.5billion lineal ft.—worth $6.2 billion—in 2014, forecast theFreedonia Group.

Wood will continue to dominate the market, accounting for77% of the market by 2014 compared to 86% in 2009, butdemand will increase just 0.5% per year, from 2.604 billionlineal ft. in 2009 to 2.67 billion in 2014. According toFreedonia, demand for wood decking will “be restrained bycompetition from composite and plastic decking materials.Interest in tropical hardwoods, such as ipe, will providegrowth opportunities in the residential building and non-build-ing construction markets.”

Composite decking, which saw demand fall 1.4% annuallyfrom 2004 through 2009 to 349 million ft., will grow 12.9% peryear through 2014, reaching 640 million ft. Meanwhile, plasticdecking, which saw demand fall 2.1% per year to total 73 mil-lion lineal ft. in 2009, is predicted to jump 13.9% annuallyover the next five years, to 140 million lineal ft. by 2014.

Decking’s fate appears contingent on a modest recoveryin the overall housing market. The residential marketaccounted for 59% of all decking demand in 2009, althoughthe percentage normally would be much higher had it notbeen for the recession in home building. Nonresidential mar-ket demand will increase 2.4% annually through 2014.

OVER THE LAST FEW YEARS, there has been a flurry ofactivity within the composite decking market. Many

of the products prevalent in the market 15 years ago are noteven available any more or, at the very least, are calledsomething completely different. In some ways, this is a good thing. There were a lot of

growing pains in the development of composite decking,and several manufacturers paid the price for using cus-tomers as field testers. But has everyone learned their les-son from the past? How do the practices of your compositedecking vendors affect you, the dealers and distributors?Let’s face it: people like new things. If you look at any-

thing Apple makes, you will see the power of marketing“new.” However, in the arena of building products sellingnew can be a two-sided coin. On one side, there’s the sell-ing power of new, which everyone loves. During the hon-eymoon phase, all of the things your sales reps told you aretrue. There’s no reason to question what they’re saying.Product is selling, inventory is moving, and you are makinga nice margin on a value-added product. The flip side of that coin, however, is not so good. After

an innovative product has been out for a year or two, issuesmay arise. The magnitude and scale of these issues oftenare completely out of your control, and resolution hinges onhow well your vendors did their homework.

FIRST PersonBy Shane O’Neill, Compositology LLC

Just like all manufacturers, composite decking vendorsbalance the costs of bringing their product to market withthe value that product provides. During a product’s lifecycle, most companies work to improve the its shortcom-ings. These refinements may be nearly invisible at the con-sumer level (updated additive systems to increase long-term durability, improved color packages to increase resis-tance to fading), but address concerns observed in the field. Depending on the nature of the refinement, it may or

may not be applied to their current product line. The timeand cost of recertification is usually prohibitive on a currentproduct, but can be justified with the launch of a new prod-uct. Therefore, most refinements are bundled with othervisible improvements (such as new color palettes, differenttexture and grain patterns, or improved surface treatments)and the marketed new product is now the “innovation.”In a perfect world, manufacturers will constantly search

for ways to improve their product to create the best possibleproduct. In reality, most improvements are more self-serv-ing. If a manufacturer can notably improve its product (i.e.,attributes that can be easily disseminated by the consumer),the marketing department will wrap that improvement up innew product names and lines and leverage it into a priceincrease. With the launch of an “innovative” product, themanufacturer will now have to refill the distributionpipeline with inventory. The producer will do 70%+ of itssales in a year just “filling the pipe,” with only a portion ofthose sales actually being installed the first year. And, deal-ers have old product is more than likely now obsolete and anew product with potentially limited real-world exposure.When composite decking first became mainstream, it

often went by the name “wood-plastic composites” orWPCs. This was because nearly everyone had the samething—waste sawdust was mixed with some sort of wasteplastic (typically milk jugs or grocery bags)—and whatcame out was this blue-gray plank that was sort of flat, sortof square, and was the “innovation” to replace treated wooddecking. The sales reps told you about its resistance tomoisture and rot, absence of splinters or toxic chemicals,that you “don’t have to clean it,” that it was dimensionallystable and would last forever. It even had a warranty. After this first generation of composites was out in the

field for a few years, you began to hear about “issues.”There were varying degrees of color loss, food stains, easi-ly scratched and marred surfaces, mold, fungus, expansionand contraction issues due to temperature, planks twistingand swelling from moisture, and even cases where boards

Put composite deckinnovations to the test

Do Your Homework“Today, ASTM test standards exist for composite

decking, such as D7031, but the industry has yet to stan-dardize specific test methods for long-term performance.As the industry continues to evolve, standards will likelybecome more prevalent. But, for now, it’s up to you to dothe homework to understand the makeup of the productsyou are offering your customers.“WPC and PVC have their pros and cons. Regardless

of which you choose, don’t be afraid to ask your suppli-ers what polymer, colorant, additive and process tech-nologies are being used to increase fade, scratch andmoisture resistance. These can make all of the differencein long-term product durability—and ultimately your rep-utation and the number of warranty claims you receive.”

– Brian Guhde, extrusion technologydevelopment manager for Americhem


decayed and turned to dust. Affected manufacturers tooktheir licks, dealt with warranty claims and class action law-suits, and ultimately, the products were greatly improved.Those that didn’t do so just walked away. This left a lot of dealers and distributors in a tough spot:

you have a personal relationship with your community.You aren’t selling a product inside a vacuum. You need tomaintain a great relationship with the contractors andhomeowners you know. They keep you in business andallow you to pay the bills. When a manufacturer has a prod-uct failure that leaves you in the lurch, any profit you mayhave had in that sale is lost in the cost of maintaining thatcustomer relationship the best you can.Four years ago, the hot innovation in alternative decking

was cellular PVC. It was the solution to all the past prob-lems with WPCs. The sales reps explained to you how thisinnovative product wouldn’t fade, stain, scratch or mar, andwas impervious to water and truly ultra-low maintenance—basically, the perfect product. Well, after selling a few mil-lion linear feet of cellular PVC decking to homeowners andcontractors, some people had problems: staining from bugspray and suntan lotion, reactions with rubberand other plastics causing discoloration, perma-nent material shrinkage, and surface chalking.Again, the manufacturers went to work devel-oping refinements.Now, the hot trend is capstock products: an

additive and pigment rich resin coating on theoutside of a composite board. Most of the majorcomposite decking producers have introduced acapstock line, promising: “Exceptional resistance to fading and water

damage”“Practically impossible to stain”“Requires very little upkeep”“Practically impervious to the elements and

everyday accidents”“Engineered to resist fading, scratches and

stains”“Resists everything but stares”Sound familiar? What can you do to find out

if history will repeat itself again? Expect morefrom the manufacturers and sales reps. Whenthey walk in your door to sell you the newest innovation,there should be a higher expectation than doughnuts or afree lunch. Be ready to ask them some simple questions todecide if the newest innovation is what you want to sell:“What testing have you done?”How are they able to claim the product performs as their

literature suggests? Do they have any sort of data or doeseverything look like a marketing campaign, with check-marks and catch phrases? If there are no numbers to explaintheir results, ask them to provide the numbers. Do theyreally know the product beyond the literature? Remember,this is the person you are going to call on if there is a prob-lem in the future.“If there is testing, who did the testing?”Was the testing done by a third-party (someone outside

the company) or someone inside? Internal testing is a valu-able tool for a company while developing a product, but atsome point, there must be validation of the results by anoutside source. It helps to keep things honest, and addsmerit to the internal work done by the company. Some of this is validated during the code testing process.

However, the code is focused only on the mechanical per-formance of the decking. It evaluates a minimum perfor-mance level for a product and establishes a joist span andstair tread rating. There is no validation of long-term dura-bility, surface performance, or resistance to the elements.“How does your competition perform in comparison?”If they don’t know what the competition does, how do

they know they have the best product?“What field testing or accelerated tests has this beenthrough?”It takes time for issues to show up in the real world. It’s

why field testing or accelerated tests are vital to draw outissues before you have to deal with them at your customer’shome. After you meet the various decking reps and compilea short list of products you feel comfortable with carrying,how do you decide which one is the right one? Evaluate themarket and bring in your best contractors and homeownersto gauge their response and interest. Then consider a technical evaluation. Not only does it

provide a second opinion on products you’reconsidering, but it also provides a unique mar-keting tool to persuade customers to buy fromyou. The cost of the evaluation can be marginalcompared with the capital investment in a newline. If a manufacturer is serious about wantingyour business, see if they will cover or offset thecost as part of the deal.“You have the newest innovation, now whatabout the old stuff?While the manufacturer makes their money

as each truck leaves the factory, you don’t makeyours until the last boards are sold. If you stillhave partial bundles from last season, have youmade your profit yet? What is the manufacturerdoing for you? Are they requiring a minimalcommitment of $250,000+ and forcing you tocarry all product colors? Is there a buyback ofunused product that will be obsolete the minutethe new stuff shows up? Vendor-managedinventory program? Are they working to be apartner with you into the future, or are they just

looking to move some units in the short haul?It’s important to look at this process as an investment.

Composite decking is a value-added product, not a com-modity. Invest in products and companies that haveinstilled confidence in what they do. Companies shouldknow their product and have scientific data to back up theirclaims. They should provide confident, competent person-nel who can address questions and concerns when theyarise from your customers. The selling of value-added lines also requires your staff

to be familiar with the products, explain their strengths andweaknesses, and provide installation tips and techniques toyour contractors. Before new products arrive, develop themeans to either effectively sell your entire inventory ornegotiate a vendor-based option. Ultimately, you are theone who will be left holding the bag, so do the research toprotect yourself and your relationship with your customers.

– Shane O’Neill is founder and chief technology officer ofCompositology LLC, a marketing and technical support consult-ing company for the composite materials industry. Reach him at(763) 567-0097 or [email protected].


Norse treater christensalcohol-infused deckingA NEW WOOD TREATING process that

uses a type of alcohol instead ofcopper-based chemicals has arrived.“Kebonization” is the result of

research conducted by Dr. MarcSchneider, University of NewBrunswick, Canada, in the 1980s and1990s. Softwoods are injected withfurfuryl alcohol, a byproduct of cornand sugar production, and then sub-jected to heat and pressure. The resultis harder, more stable, and more resis-tant to water and weather damage thanuntreated wood. “This technology provides a global

eco-solution to the major environmen-tal challenge of rainforest deforesta-tion,” says c.e.o. Christian Jebsen. “Itcan withstand harsh climates, and isideal for both indoor and outdoor use.”Norwegian investors who wanted

KEBONY, used in Europe as an alternative to pressure treated wood and tropical hardwoods, is nowbeing specified in the U.S.

marketed as a premium product inEurope—along with similarly treatedash, beech, maple, and Scots pine.According to Murray, the U.S.

office has focused on large, municipalprojects, mainly on the East Coast,where officials are faced with majorrenovations of aging boardwalks. Hesays that Kebony’s environmentallyfriendly profile boosts local supportfor the costly renovations. He also believes that the large pro-

jects will attract the attention of resi-dential customers. “Private customersknow that major projects go through atough selection process with profes-sionals,” he says. “When the economypicks up, people can get the great newdecking they’ve seen in publicplaces.”Officials in Bethany Beach, De.,

selected Kebony SYP for its agingboardwalk after two years of field-testing and “nothing but positive feed-back,” according to Brett Warner,director of public works. Phase II ofthe renovations—including deckboards and railings—was recentlyapproved, for an estimated cost of$200,000. The final phase is slated fornext year. Kebony SYP has also been

installed on a 15-ft. section of the oldboardwalk in Ocean City, Md “It’sholding up really well,” says MichaelDatillo, city business administrator.“It’s not splintering and it looks great.We’re considering a larger test area.”Murray says that Kebony has been

specified for 22 major new installa-tions that will soon start construction.One example is Hunter’s Point Southin New York City, where an oldindustrial area is being transformedinto an urban living complex. At thislocation, Kebony will be used for anew boardwalk, a dog park, and otheramenities.

FEATURE StoryKebony SYP Decking

to develop and commercialize thetechnology got involved in 1997. Apilot production plant opened inNorway in 2003, and began supplyingEuropean projects—decking and piers,cladding and roofing, window frames,plus indoor flooring and furniture—the next year. In January 2009, a larg-er, full-scale plant was opened inSkien, Norway.The decking currently sold in the

U.S. is southern yellow pine domesti-cally grown but shipped by containerto Norway for processing. The compa-ny hopes to eventually open a plant inthe U.S. Until then, Douglas Murrayand his staff handle sales and distribu-tion from an office and storage facilityin Roanoke, Va. Although most of the treated SYP

is shipped back to the U.S., some is


DECKING BOARDS await treatment at Kebony’s full-scale production facility in Skien, Norway.

BOARDWALK renovation in Bethany Beach, De., used Kebony SYP after extensive, onsite testing.

Looking ahead, Murray says thatthe company is “seeking to developreseller relationships that can growwith the demand. “ He has alreadyforged one such alliance, with NatureNeutral, a green building dealer basedin Charlottesville, Va. “We became aware of Kebony after

it was specified for a local project, byan architect who was looking forsomething classier than plastic orcomposite, but didn’t want to use trop-ical hardwoods,” says KristopherJensen, who handles sales at NatureNeutral. The company supplied Kebony

SYP for a recently completed 10’x16’residential deck, and expects to supplythe new product for two or three more

deck projects this summer. “It’s agood looking, natural product thatholds up well,” says Jensen. “A greataddition to our inventory of greenbuilding products.”Another reseller is Mid Atlantic

Building Supply, Ocean View, De.,which shipped 3,000 sq. ft. of KebonySYP for walkways and decking at aresidential remodel in North BethanyBeach, De., just blocks from the reno-vated boardwalk.“He changed to Kebony after see-

ing how well it held up after one yearon the boardwalk,” explains BrendanWelch, a broker at Mid Atlantic. “Thearchitect had originally specified ipefor this project, but was interested in agreener alternative.”


NEW ENGLAND dealer Moynihan Lumber recently celebrated the fifteenth anniversary of its youngest yard, in Plaistow, N.H.

WHEN MOYNIHAN LUMBER, head-quartered in North Reading,

Ma., recently celebrated the fifteenthanniversary of its third location inPlaistow, N.H., president MichaelMoynihan failed to understand whatall the hoopla was about.His granddaughter, Shannon, was

more than a little excited, however,because she’d helped open the store asher first job in the family businessafter coming home from college. Butshe recalls Granddad humphing,“Fifteen years? That’s nothing!” Well, not for someone “still work-

ing like a horse at 78,” allowsShannon—a gent who launched thecompany many decades earlier, in1959. But, hey, he was a newbie backthen, too. He’s lived with the stories ofhis own uncle delivering lumber witha horse and wagon in the Twenties. Since then, Moynihan Lumber’s

original three shacks atop four acreshave multiplied to eight buildings on a13-acre site; several more of each inthe Beverly, Ma., location launchedin1986, and the 20 acres anchoringthat 15-year-old Plaistow store, whichalso serves the outfit’s distribution/storage center.

Old customers =new Facebook friends

COMPETITIVE IntelligenceBy Carla Waldemar

Today the company boasts 135employees—many of whom, it seems,answer to the name of Moynihan. Talkabout family-owned! Michael and histwo brothers each head one of thethree locations. Shannon’s cousinChris serves as general manager atNorth Reading. Cousin Katie runs thekitchen design department (and justreturned from a buying show in Paris).Cousin Curt acts as lumber buyer(which took him last year to an expoin Disneyland). A couple of the youngtads in the rising fourth generationhave been corralled into YouTubecommercials, reports Shannon, whoserves dual roles as aunt-cum-market-ing manager. The extended Moynihan family,

also known as employees, remainstrongly loyal because of the familyatmosphere. “My father thinks they’reall his children,” says Shannon with averbal eye-roll. And that includesAunt Rita, an employee of 35 years,who’s not even an actual aunt. Still,she’s so beloved that she’s had a citypark named after her. Part of the charm is the manage-

ment style Shannon and her dadendorse. (“We’re so alike they call me

‘Little George,’” she laughs.) Bothagree that there’s no place for micro-management: “It’s your job. It’s yourdepartment. You run it any way youwant to, as long as it makes money.”And nobody gets an unearned leg up.“I started here, right after college,answering phones, and worked myway up. Here, you pick your area,work hard at it, and you’ll rise to thetop.” For instance, cousin Curt startedin with a high-school work program,and today, as lumber buyer, he’s off toDisneyland. “Embrace change” is Shannon’s

mantra, and one that’s part of her genepool. Father George was the brotherwho pushed for opening the Plaistowstore, across the state line in NewHampshire. The first two locations,close to Boston, anchored well-estab-lished communities, while Plaistowstill offers “a lot of open land. Peoplewill head there,” as he foresaw, “andwe’ll be ready to go after their busi-ness”—especially true after the down-turn slowed new building elsewhere.These days, as the recession ties

consumers to their present homes, asis happening everywhere in the nation,it’s remodeling that’s keeping the


store. They’d give you the shirt off their back if you neededit. And that comes from the top down—the message thatwe help people any way we can.” Thus, those generations of Moynihans make it a point of

pride to give back to the community. They’ve donated lum-ber to the Boy Scouts for 35 years. They’ve sponsored theannual Cancer Run for Life (and populate its board).They’re behind the North Shore Cancer Walk. And theJimmy Fund is Michael Sr.’s brainchild—a golf tournamentthat brought in $30,000 for cancer causes last year, and,since its inception, well over $400,000.Clearly, Moynihan’s place as a community pillar is a

constant. But its players aren’t mired in the past. “Embracechange,” Shannon preaches with evangelistic fervor. Andshe’s quick to act on her mantra. As marketing manager,the young woman has spearheaded the company’s efforts toconvey its message through electronic—read, social—media, taking over where its traditional print and airwaveads leave off. Since 2007 she’s sent out a monthly e-newsletter which has received “great response,” driven inpart by monthly Win It e-contests and promotions, such asticket giveaways, which require in-person pick-up. Whichdrives store traffic. Which is wonderful. “I’m a big, big fan of social media,” she says, and, to her

delight, so are Moynihan’s contractors, a group not notablefor occupying the cutting edge. She’s set up a specialFacebook page for them, backed by a clever Like ItForward campaign in which Moynihan donates $1 to localfood shelves for every new contractor who “friends” thecompany—well over 100 so far. The e-tool also encourages them to ask questions, such

as installation how-tos, and receive immediate response.They also send her leads. To her surprise and immensepleasure, these pros also forward unsolicited testimonialspraising the company’s products and services—“pure gold,an unexpected bonus,” which Shannon posts on the compa-ny’s website. (The website also contains a detailed how-tosection that helps pros and d-i-yers alike attack their pro-jects.) “Mobile marketing is the next big thing,” this maven is

convinced. “I’m a big believer. It keeps us well ahead ofour competitors.” Even better, it’s absolutely free—all themore vital in a year that’s seen her marketing budgetcrunched by one-third. And let’s not forget the free talent,a.k.a. young cousins, cavorting on the company’s YouTubevideos. Doing more with less has become entrenched throughout

the organization during these challenging times. Yes, that’sthe g.m. shoveling the parking lot, and manning the salescounter, with nary a “not in my job description” whine.“Everyone has had to pitch in,” Shannon tes-tifies. “We’re surviving due, also, to a delib-

erately conservative credit and pricingpolicy, especially where our competitorsare concerned. Some of them are almostgiving away products in order to attractbusiness, but I believe that will back-fire. It isn’t easy to turn away busi-ness, but if it isn’t profitable busi-ness in the long run, it doesn’t doanyone any good.”

company alive. And Moynihan’s ahead of the curve in thatniche, too. Its showroom, launched in 2005 to showcase 20-plus kitchen vignettes, has just undergone a completefacelift of its own. It now features a walk-through homeenvironment, from porch to deck, for which Cousin Chrisre-evaluated every single product (at the same time, hemodernized the company’s technological systems to enableall inventory to be accessed and scanned via computers).Chris also led the company’s laborious efforts to becomeFSC-certified and has included a whole showroom wall ofgreen products for consumers to investigate. “Green is notbig here in New England at the moment, but it’s the waveof the future,” Shannon insists. “And we’ll be positioned inthe lead.” She’s also ecstatic about the uplift in the Beverly store,

designed with Ace Hardware’s input. “I’m a Macy’s andTarget shopper, myself’—name me a woman who isn’t—“and now it looks like a Target hardware display, all beau-tifully organized and labeled,” she effuses.In another move that seems to target Target’s credo,

Moynihan has morphed to offer one-stop shopping, supply-ing everything from lumber, roofing, insulation and hard-ware to paint and power tools. It now offers a line of spe-cialty millwork, having snagged a top employee. (“WhenJeffers Millwork closed, we got ’im!” Shannon crows.) Thecompany also provides door and window installation, alongwith kitchen, bath and deck design assistance. “Remodelingwill be the big thing going forward,” she predicts. Evenduring the recession, people want a new look. We’re doinga whole lot of bathrooms.” To indicate that thrust and promote the increased scope

of the company’s offerings, she’s advocating a namechange from Moynihan Lumber to Moynihan HomeImprovement. But so far, Little George has not been able toconvince George to act on that suggestion.Although the yards can save a bundle by purchasing

jointly, and by participating in an ENAP plan along withtheir competitors, Moynihan’s three sites all boast differentdemographics. North Reading, the oldest and companyheadquarters, historically served large tract builders with itsstrong outside sales staff. Beverly, which started out as adot on the farming landscape (“We sometimes got paid invegetables”) has developed into a more upscale communitywhere foot traffic prevails. (“We’re like Cheers for our cus-tomers—a hangout for remodelers and jobbers.”) AndPlaistow, in New Hampshire, serves a mix of both thesedays. “When I started out there,” Shannon recalls,” I wasthrilled by the energy and momentum of establishing abrand in a new location and seeing it succeed in a few,short years. It proves our business formula was the rightone.” (That formula, by the way, was written by her for-bears over 50 years ago: “Quality backed by a desire toplease.”)That maxim still pleases the pros, who remain

Moynihan’s mainstays. Service by knowledgeable, experi-enced staff, sure. Free delivery—terrific, too. Trainingevents to keep abreast of new products—also nice. Butwhat it comes down to (you’ve heard this before) is rela-tionships. Moynihan’s contractor clientele represent thethird generation, doing business with the third generation ofMoynihans. All of the above are exactly what keeps Shannon on

board here. “Number one, my family means more to methan anything,” she professes, “and, number two, from themanagers to the yard guys, everyone’s dedicated to the Carla Waldemar

[email protected]


3. How to Present the Bid: Make It an EventThe set up conversation: “John, I will have the bid

ready tomorrow. Will Pete and Mike be able to make thepresentation? If not, let’s set it for a time when all the deci-sion makers can be present.”If all the decision makers are not present, we are sub-

mitting a bid, not selling.Find out when. “When will the order be placed?” Be the last bidder. “Are all the bids in?” is a bid-buster

question. If the answer is yes, find out as much as possibleabout them. If the answer is no, why are we waiting?

Present a final number without specifications. If weare doing highly detailed work or there is some advantagein others seeing our bid, this is a bold and effective move.

Customer: “Wow, that’s a great price, but where are thedetails?”

Bold Salesperson: “We stand behind our work 100%.Our designers are the best in the business. I will give youthe details when you give me the order.” This approach can be flipped by giving the specs but

leaving out the price—until all decision makers are pre-sent, for example—or modified by leaving out one key ele-ment in an otherwise immaculate bid. This approach canbe delivered in bolder and subtler ways, adjusting it to ourstyle and that of our customer.

Submit an inexpensive bid with a strict time limit.Especially in ongoing business-to-business sales relation-ships, this is a great bid buster. Submitting a great pricewith a time limit encourages our customers to work withus. If they come back after the deadline, we must holdfirm, even if we lose the business, or this will not work.

Speak assumptively. We must speak as if we are pre-senting a solution that will be implemented. (Not a bid!)

Know the details. Especially when presenting a cus-tomized solution, if we fumble on details, the customerwill return immediately to the standard bid.

Ask for the order. Speak assumptivelythroughout the presentation and be preparedto ask for the order many times. Letting thecustomer walk (consider, think over, dis-cuss on their own) or any other option low-ers our closing percentage drastically.

* Our guy is someone whobuys from us like a partner.Refer to number one bid bustersolution above.

James OlsenReality Sales Training

(503) [email protected]

MANY SELLERS FEEL VICTIMIZED by, and thus fall victimto, The Bid Process. “I can’t really sell my guy*

because he buys off a list. The lowest bidder gets the order.I try to work with him, but he tells me to quote my bestprice the first time and if I’ve got the low number, I get theorder.” (“I got the order! Hooray! I’m the dumbest!”)This is a victim mentality. And if it’s true, which it’s

not, we can have a $10-an-hour employee do our job.Number 1 Bid Busting SolutionProspect for accounts who will buy from us as promo-

tional partners, not people who want us to be their Bid-B’s.But if we must bid…

2. De-commoditizing the Bid/RFQ/InquiryAsk about desired outcome. What exactly is the cus-

tomer trying to accomplish? If we know the desired endresult, we submit a bid—a solution—that is better cus-tomized (not commoditized) to our customer’s needs and,most importantly, to the talents of our company. We re-write the bid customized to our strengths vis-à-vis our cus-tomer’s desired outcome.

Work the bid collector. This is neither my style normy favorite, but it works and most master sellers have anarrow or two of this strategy in their quiver. Being nice tothe person who collects the bids—whether they are thebuyer or not—pays dividends. Asking for guidance andfriendly conversation will give clues to how the bids areplaced. Often information considered unfair is given.

Work the Bid. This is a heavy part of strategy numberone. When given a bid, we must query every aspect—price, delivery, availability, penalties for late shipment.That small piece of information and many like it will bediscovered going through the bid thoroughly and complete-ly. Everything is important, but identify the most importantaspect and prioritize the remainder.

OLSEN On SalesBy James Olsen

Bid busting solutions


short-hand definition of what a green business is all about.It was coined by John Elkington in the 1990s as a way ofjoining the concepts of “sustainable development” and“corporate social responsibility.” The idea is that if busi-nesses tracked their performance in the realms of social andenvironmental impacts, as well as profits, they might thenbe accounting for their full cost of doing business. And inso doing, they would seek to improve where performancelagged, ameliorating social and environmental problemsalong the way. Though this sort of formal accounting may be problem-

atic at the moment, there are advantages for LBM dealerswho adopt TBL principles, or a similar approach. Perhapsthe best place to start is with a book that’s required readingfor every Green MBA. Natural Capitalism by Paul Hawken(co-founder of Smith & Hawken), Amory Lovins, and L.Hunter Lovins, identifies the four principles of “capitalismas if living systems mattered”: radical resource productivi-ty, biomimicry, service and flow economy, investing in nat-ural capital. In short, by reducing resource use, eliminatingwaste, rethinking the provision of goods in terms of ser-vices, and by treating sources of natural capital (such aslocal wetlands that naturally purify water, for example) asreal sources of wealth to be restored, nurtured and grown,businesses can lower costs, maximise profit, and solvemany of the world’s problems. This alternative vision of capitalism, and others like it,

offers a useful strategic framework, especially in light ofeconomic and social challenges we’re sure to face in com-ing decades. This kind of thinking has already helped com-panies such as Interface (carpet indus-try) and Steelcase (office furniture),lead their respective industries. In any case, adopting a “natural

capitalist” framework will lead abusiness toward the best green andmost economic practices as a mat-ter of course. For dealers seekingto win in the green buildingarena, becoming a greencapitalist seems like animportant and natural nextstep.

Jay TomptManaging Partner

William Verde & Associates(415) 321-0848

[email protected]

Adam Smith andgreen capitalism

IN THIS COLUMN, we’ve talked quite a lot about the impli-cations of green building and the wider sustainability

movement for LBM dealers and distributors. For the mostpart, the conversation has focused on evolving marketopportunities, merchandising appropriate products, and cre-ating operational eco-efficiencies. But are the pursuits of “green” market opportunities and

cost-saving efficiencies sufficient to make a business“green” or its leaders green capitalists? Devotees of Adam Smith might answer “yes,” as long

such activity maximises profit. It’s the result that countsand if “the invisible hand” does its job, then what’s best forsociety will emerge naturally through the activities of mass-es of economic decision makers, each pursuing their ownself interest. Of course, the economic world Smith inhabited was

quite different from today’s global corporate economy. Butin at least one respect, the reality for a merchant capitalist200 years ago was very nearly the same as for many dealersin today’s LBM supply chain. In Smith’s day, the merchantwas intimately woven into the fabric of local society. “Theinvisible hand” operated within an ethical framework thatassumed the interests of a wide range of stakeholders with-in the community. So, was Adam Smith the first “green” economist? No.

But notions of green capitalism are becoming just as main-stream, being taught in leading business schools and adopt-ed by leading corporations and green building companies.For locally focused members of the LBM supply chain,these new articulations of capitalism may already seemfamiliar. But delving deeper and adopting new approachesto business leadership may hold long term strategic value.For many, the term “triple bottom line” has become the

GREEN RetailingBy Jay Tompt


Willson & Son Lumber Co.,Plainview, Tx., is liquidating after nearly100 years, with the coming retirementof 78-year-old owner David Willson.

Cason Cos. acquired LouisWilliams & Sons, Hendersonville,N.C., from third-generation ownerDanny Williams and relocated the 83-year-old hardware store to a 9,000-sq.ft. building next to its Cason BuilderSupply operation in East Flat Rock,N.C.

Midway Hardware & Lum-ber, Joplin, Mo., has closed after near-ly 48 years, with the retirement of own-ers Larry and Roger Brown.

Brownsboro Hardware &Paint, Louisville, Ky., added a secondlocation, in the former home ofVance’s True Value Hardware,Prospect, Ky.

Havelock Building Supply,Havelock, N.C., is liquidating after 27years.

Owner John Jackson will retain theproperty for a new, undetermined use.

DEALER BriefsAnthony Enhancing SawmillAnthony Forest Products Co., El

Dorado, Ar., will significantly upgradeits sawmill in Urbana, Ar. The planincludes adding more primary sawmillequipment and dry kilns and buildinga new high-speed planer mill system. Aubra Anthony, president and

c.e.o., said the “project will improvethe facility’s operating, energy andenvironmental efficiencies, and alsoprovide an increased volume of quali-ty lumber products for our customers.”

Arch Licenses OsmoseʼsMicronizing TechnologyArch Treatment Technologies,

Atlanta, Ga., has been granted aworldwide license to producemicronized wood preservatives inaccordance with patents owned byOsmose, resolving a patent infringe-ment suit between the companies.Both manufacturers will continue

supplying the market with their cur-rent preservatives.

Investment Group Buys ABSDoor/window distributor American

Builders Supply, Sanford, Fl., hasbeen acquired by private equity firmBlue Wolf Capital Partners LLC, New

York, N.Y. Investors included ABS’s manage-

ment team, led by c.e.o. Chad Barton,and Bob Dello Russo, c.e.o., Del-Air,Sanford, who joins the ABS board.

Suitor to Mix Activant, EpicorActivant Solutions, Livermore, Ca.,

has agreed to be purchased by privateequity firm Apax Partners and mergedwith another Apax acquistion target,Epicor Software Corp., Irvine, Ca.The acquisition of Activant is con-

ditioned upon the concurrent closingof Epicor, both expected by the end ofthe second quarter. The combinedcompany will retain the Epicor name.

Osmose Acquires CopperCompound SupplierOsmose, Griffin, Ga., has acquired

the production assets of chemical pro-ducer Peninsula Copper Industries,Hubbell, Mi., a copper compound sup-plier to Osmose for over 25 years. “The acquisition of PCI is another

important step in our integration intothe manufacture of copper compoundsthat are essential to the production ofour MicroPro, NatureWood ACQ, andCCA preservative products,” saidOsmose president Paul Goydan.


DEALER BriefsTrails West Ace Hardware, Gardner, Ks., is reopen-

ing this month under new ownership.Prior owner Rex Cummings will stay on as manager, joined

by his son Cameron.

Intown Ace Hardware, Decatur, Ga., has expandedits garden center.

Parkway Hardware, Minneapolis, Mn., has closedafter nearly 10 years of business.

Menards opened new megastores April 5 in Bemidji, Mn.(Matt McKinney, general mgr.) and March 28 in Marshall, Mn.(John Miller, general mgr.).

Lowe’s opened a second, 103,000-sq. ft. store April 14 inFrederick, Md. (Teresa Yeargan, store mgr.).

Habitat for Humanity opens a 10,644-sq. ft.ReStore discount LBM outlet May 6 in Topeka, Ks. (AndrewFaunce, mgr.).

Other new ReStores celebrated grand openings early lastmonth in Waynesville, N.C.; W. Roxbury and Worcester, Ma.,and Dickson, Tn. (Robert Scarlet, mgr.). Another is expectedlater this year in Iowa City, Ia.

The Knoxville, Tn., ReStore moved to larger, 23,000-sq. ft.building.

ProBuild received FSC chain-of-custody certification for59 of its lumberyards.

Ohio Dealer Switches Gears at 100Mohler Lumber is celebrating 100 years of business in

Canton, Oh., with a new look and focus. “Mohler’s started as a lumber supply business with a

hardware store for convenience,” said Jed Rohrer, who co-owns the fourth-generation company with his sister,Jennifer Rohrer Hamilton. “With the slowdown in thehousing market, we have adjusted the business plan to be ahardware store with lumber for convenience.”The renovation began with the main building, with a

new facade, wider aisles, improved lighting, and newinventory. “We have plans to update the remaining build-ings one at a time,” said Rohrer. “We will be adding a lawnand garden center to the main store next.”

Producer Pulls Plug on CuNapMerichem Co., Houston, Tx., has declined to re-register

copper napthenate with the EPA and will discontinue pro-duction of CuNap-8. Its chemicals division will insteadfocus on naphthenic acid.CuNap is used to treat utility poles, railroad crossties,

bridge timbers, and other industrial wood products.Elaina Jackson, Pacific Wood Preserving Cos., expects

most plants and customers to switch to pentachlorophenol.“Penta and CuNap have the same AWPA listings, and

many customers and utilities specify them interchange-ably,” she said. “The major difference is that CuNap is a‘general use’ preservative and penta is a ‘restricted use’preservative. Penta does have the overwhelming percentageof the market share for pole production—the primary use ofboth CuNap and penta, so I don’t see that the change willimpact the market much.”

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Kebony Inc. 4419 Pheasant Ridge O� ce Park, Floor 302, Roanoke, Virginia 24014, Phone 540-904 6781

A REVOLUTION IN WOODUntil recently, beautiful wood types were traditionally associated with rain forest wood. Kebony has changed all that. Now there is a new type of wood available. Choose Kebony Southern Yellow Pine – a revolutionary new organic modifi cation of wood. As aesthetic, strong and durable as rain forest wood, yet 100 % environmentally friendly.

Call Kebony Inc. on tel: 888 914 9995 or send an e-mail to: [email protected]. www.kebony.us.com

“This year we want to order Kebony Southern Yellow Pine again,

for the rest of the boardwalk.”

Brett Warner, Director,Public Works Bethany Beach, Delaware


Siberian Larch DeckingAll Natural, All Weather, For All Time...

SiberWood decking offers: • Natural durability with no chemicals or other treatments• Beautiful, natural golden brown appearance • Accepts stain well• Large heartwood content ensures maximum durability and uniform color• Low maintenance • High manufacturing standards for consistent quality• High density increases stability • Packaging allows for easy handling • Environmentally responsible from FSC-certified forests

Due to its reputation for longevity in European construction, Siberian larch is referred toas “The Tree of Eternity.” Many existing structures are hundreds of years old, includingthe ancient city of Venice, which is supported by thousands of larch piles.

Relatively unknown in the U.S. until recently, this product is now available under theSiberWood brand. Features include high dimensional stability, low installation cost, lowmaintenance, quality of manufacturing, and attractive appearance. However, the one fea-ture that really sets it apart from other species is its natural resistance to decay, stemmingfrom its high density, large heartwood content, hardness, and high resin and extractive content.

Alternative decking products were developed due to a lack of availability and quality of wood products. The demand is rising forlong-lasting, low maintenance, chemical free, real wood surfaces and SiberWood is raising the standards for the decking industry.

Building Materials Alliance, Peachtree City, GA(770)631-8673 • www.siberwood.com

THE WINNER of a new deck contest sponsored by Arch TreatmentTechnologies, Atlanta, Ga., will enjoy a five-day trip to attend this year’sDeckExpo, plus a one-year membership in the North American Deck &Railing Association.

G-P Completing Carolina OSB MillGeorgia-Pacific has resumed construction at the nearly

complete OSB facility in Clarendon, S.C., that it acquiredfrom Grant Forest Products.The $400-million purchase from Grant also included

operating OSB mills in Allendale, S.C., and Englehart, Ont.“We expect it will take most of this year to complete

construction on the plant,” said Mark Luetters, GP’s presi-dent-wood products. “We are currently planning to start theplant in December 2011. Having now operated an identicalplant at Allendale, we believe we will be able to quicklyand efficiently begin producing OSB.”GP will spend $30 million to complete the facility.

Myers Forest Products, Salisbury, N.C., has filedChapter 11 bankruptcy.

Boise Building Material Distribution applied for atax abatement to help add 100,000 sq. ft. to its Wayne, Mi., DC.

Doll Lumber, Southington, Oh., lost a 6,000-sq. ft. ware-house and two front-loaders in an April 11 fire.

Hedrick Brothers Lumber Co., Lexington, N.C., willrebuild its sawmill after a March 24 fire.

Feldman Wood Products, Garden City, N.Y., nowoffers California Redwood Co.’s Classic Heart decking.

Engineered Lumber Partners, Loxley, Al., is nowdistributing LiteSteel beams in the Gulf Coast.

Sherwood Lumber Corp., Islandia, N.Y., and sub-sidiary Bloch Lumber , Chicago, I l . , are install ingWoodPro’s InSight ERP software at their 50+ locations.

Building Products Inc., Council Bluffs, Ia., now dis-tributes Curtner Lumber’s Ozark Natural Paneling.

EcoPrime, Augusta, Ga., will produce and distributeECOB Red Shield Protected Lumber.

K&R Wholesale, Camdenton, Mo., is stocking GAF’sDuraLife Natural Grain Collection and RailWays universal rail-ings. Seven D Wholesale, Altoona, Pa., and Coastal For-est Products, Bedford, N.H., offer the full DuraLife Collection.

SUPPLIER Briefs

Steve McNamee has joined HuberEngineered Woods, Charlotte,N.C., as general mgr.-AdvanTechflooring and sheathing.

Michael Corsino, ex-Armstrong, hasjoined the sales team at BostonCedar, Holbrook, Ma., as a Typarweather protection and Surroundunderlayment specialist.

Johnathan Richards is new toHoover Treated Wood Products,Thomson, Ga., as marketingdesigner and administrator.

Paula Presenkowski has been namedv.p.-marketing for the facilitiesmaintenance division of HDSupply, Atlanta, Ga.

Michael Willen has retired after 35years in the business, the last 18 insales at Sherwood Lumber,Islandia, N.Y.

Bob Stanek, ex-Brockway Smith, isnow in sales at Russin Lumber,Montgomery, N.Y., focusing oncentral and western Massachusetts.

Paul Devine, ex-Simpson Lumber,and Jeff Blanton, ex-UniversalForest Products, are new to sales atKyKenKee Inc., Vance, Al.

MOVERS & Shakers

Scott Berchiatti, ex-Pella Windows& Doors, is the new division mgr.at Capital, Houston, Tx.

Mark Niewerth has been appointedbranch general mgr. for EppersonCedar Creek, Statesville, N.C., fol-lowing Epperson’s acquisition byCedar Creek.

Blase Grady, ex-Building MaterialsConsultants, is now chief operatingofficer for Magbee ContractorsSupply, Winder, Ga.

Henry Linares, ex-Perez Trading, isnow director of Latin Americansales for International ForestProducts, Foxborough, Ma.

Mark Fikse is new to Stock BuildingSupply, Raleigh, N.C., as divisionpresident and general mgr. for theSoutheast region, overseeingGeorgia and the Carolinas.

Kellie Radzik was promoted to cor-porate controller at Snavely ForestProducts, Pittsburgh, Pa. JohnLewis is now director of informa-tion technology; Mark Thorn, act-ing general mgr., Houston, Tx.,division; Regina Holder, officemgr., Houston; Colleen Arnold,

office mgr., Westminster, Md., andCliff DeSpain, Typar marketdevelopment mgr., internationaldivision, Liberty, N.C. Lee Shaw,ex-Craftsman Restoration, hasjoined ProVia, Sugarcreek, Oh., asdirector of sales for residentialdoors & windows. Andy Iamaiohas been promoted to regionalsales mgr. for its newly redefinedsouthern region.

Brad Baker, ex-Bradco Supply, isnow regional sales mgr. for ABCSupply’s new Southeast region.Among other ex-Bradco staffers,Marc Kalman is now businessmgr. for metal parts; Frank Marc-cocio, commercial sales accountexec; Bob Landrum, district mgr.for central Florida; Kim Burns,tile product mgr. for Florida; DrewDenick, specialty products mgr.;Ray Milewski, commercial cus-tomer relations mgr. for Florida,and Jack Morgan, residentialproduct mgr. for Florida.

Jayne Seagrave, marketing director,Vancouver Tool Corp., is the newpresident of the Worldwide DIYCouncil. She replaces former exec-utive secretary Donald Droesch,who is retiring from the council.

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

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

Webstock Ainsworth OSB is used in more wood I-joists than any other brand.

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Ainsworth.Surround yourself with engineered quality.

Dana Deem has been promoted topresident of 200-unit WindowWorld, North Wilkesboro, N.C.,replacing Blair Ingle.

Hiroshi Nagai was named presidentof Mitsubishi Caterpillar ForkliftAmerica, Houston, Tx., succeedingShigeru Tanemura, who returnedto Mitsubishi Hq. in Japan.

Stan Hathorn, Homeland Vinyl Pro-ducts, Birmingham, Al., was elect-ed chair of the Vinyl Fence, Deck& Railing Manufacturers Associa-tion, succeeding John Purvis,Kroy Building Products, Cary, N.C.Vice-chair is Mike Burkart,Waymark Fence & Rail Acces-sories, Denver, Co.; treasurer PeterWilliams Jr., Eastern WholesaleFence, Medford, N.Y.; secretaryMike McGuire, Enduris Extru-sions, Jacksonville, Fl.; member-at-large Paul German, NebraskaPlastics, Cozad, Ne., and AFA repBob Burton, Poly Vinyl Creations,Hudson, Fl.

Scott Thomsen was named presidentof Guardian’s Flat Glass Group,Auburn Hills, Mi., effective Sept.1. He will succeed Russ Ebeid,who is retiring after 41 years withthe company.

Frank Vallot, Acadian Hardwoods &Cypress, Ponchatoula, La., waselected president of the SouthernCypress Manufacturers Associa-tion. Ernie Pyle, Ontario Hard-wood, Keysville, Va., is now v.p.

Pembroke “Pem” Jenkins, Turn BullLumber, Elizabethtown, N.C., waselected Hardwood ManufacturersAssociation president. First v.p. isJack Shannon, J.T. Shannon Lum-ber, Memphis, Tn.; 2nd v.p.Skipper Beal, Beal Lumber, LittleMountain, S.C., and executive v.p.Linda Jovanovich. New directors:Tommy Battle, Battle Lumber,Wadley, Ga.; Richard Wilkerson,Anderson-Tully, Vicksburg, Ms.;Jeff Edwards , Edwards WoodProducts, Marshville, N.C.; MikeMcQueen, Anthony Timberlands,Beirne, Ar.; Nordeck Thompson,Thompson Appalachian Hardwoods,Huntland, Tn., and Butch Morgan,Louisiana Hardwood Products,Morrow, La. New to the executivecommittee: Wilkerson; Battle; BobMiller, Frank Miller Lumber, UnionCity, In.; Terry Brennan, BaillieLumber, Hamburg, N.Y., andRhonda Kendrick, KendrickForest Products, Edgewood, Ia.

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

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

1 W" 0.8E Durastrand® OSL Code-approved for stair stringers. Rim Board

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Ainsworth.Surround yourself with engineered quality.

August “Gus” J. Coppola has beennamed senior v.p.-corporate devel-opment for the engineered productsgroup of Quanex BuildingProducts, Houston, Tx. FollowingQuanex’s acquisition of Edgetech,George L. Wilson is now generalmgr. of Edgetech, and Michael B.Hovan is senior v.p.-sales & mar-keting for engineered products.

Etienne McManus-White has beenappointed chief marketing officer atForest Stewardship Council-U.S.

Colin Allkars is the new dispatcher atMungus-Fungus Forest Products,Climax, Nv., report owners HughMungus and Freddy Fungus.

Deck Fastener Maker Expandsto Tools and AccessoriesIpe Clip Fastener Co., Gaffney,

S.C., is rolling out its own brand oftools and accessories, suitable for thetoughest hardwoods.The new DeckWise line includes

hardwood plugs, deck spacers, stain-less steel screws with stainless orColormatch heads, and a four-in-oneDrill&Drive tool that allows buildersto pre-drill, countersink or counter-bore, then flip the countersink insertand drive the screw.


IN Memoriam Burner Lumber, Vienna, W.V., andmarried the owner’s daughter. He laterjoined Wickes Lumber, Daytona, Fl.,and Scott Lumber, Parkserburg, W.V.He started his own company in

1984, and sold it to Stock in 2003.Walt Freeman, 78, c.e.o. of Ken-

tucky-Indiana Lumber Co., Louisville,Ky., died March 21 in Louisville. He attended the University of

Kentucky and served in the Army. Jack A. Johnson, 81, co-owner of

Johnson Lumber & Supply, Stigler,Ok., died April 5. He and his wifefounded the business in 1947.

Henry Benjamin Sedwick Jr., 89,founder of H.B. Sedwick BuildingSupply, Orange, Va., died April 5.After serving as an Army Air Corps

navigator on a B-52 during WorldWar II, he and his wife, Hazel, starteda construction company in 1954 thatlater added a retail business.

Jack Lee Monroe, 78, founder ofJM Lumber, Port St. Lucie, Fl., diedApril 1 in Okeechobee, Fl. After serving with the Air Force

during the Korean War, he worked for

Lee F. Adams, 76, retired owner ofLumber & Supplies Inc., Yarmouth,Me., died of cancer April 7.After graduating from high school,

he became a part owner of his father’sbusiness, Eastern Builders, Yarmouth.He opened his own yard in 1965,which he sold to Hancock in 1984.He also served as president of the

Retail Lumber Dealers Association ofMaine and on the Northeastern RetailLumber Dealers Association board.

Richard Eric Fischer, 80, formerco-owner of Warren Lumber & Mill-work, Annandale, N.J., died March 12in Marco Island, Fl.The Air Force veteran started as a

home builder, before owning Hunter-don Lumber & Building Supply,which later became Warren Lumber.

Jack A. Batson, longtime managerof New Lenox Lumber Co., NewLenox, Il., died April 1.He served in the U.S. Army during

World War II.Carl Vickers Sumner, 93, co-

founder of Wrightsville Lumber,Wrightsville, Ga., died March 23 inWrightsville.He enlisted with the Army in 1942,

and served with the Seventh Armydivision in Europe. After the war, heand Herbert Jackson founded SYPmill Wrightsville Lumber.

William Darrell Fisher, 78, ownerand operator for 38 years of Fisher’sLumber, Seneca, Mo., died March 30in Houston, Tx.

Joe Hearin, 99, founder of HearinLumber, Largo, Fl., died April 11 inPortland, Or.He started the company in 1954,

after establishing Hearin ForestProducts, Portland, Or.

Herbert T. Hover, 79, formermanaging officer for Neff LumberCo., Findlay, Oh., died April 17 inAkron, Oh. He served as an officer for the Ohio

Construction Suppliers Association.

ClarificationThe machine applicators listed on

page 17 of the March issue were notauthorized by the Western Red CedarLumber Association. As well, the list wasnot meant to be exhaustive and may haveincluded companies that distributepreprimed western red cedar, but do notoperate their own finishing equipment.


NAWLA 2011

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THE WHOLESALE LUMBER INDUSTRYhas undergone transformative

change over the last few years. Itseems, however, that the economy isfinally recovering, if slowly. It won’tbe the same as before, and companieswill need to position themselves tosucceed.At this point, a company that made

it through the recession is leaner, moreefficient, and operating at lower cost.Normally, those improvements wouldgive a company an edge over its com-petitors. This time, however, almostevery other company has gone throughthe exact same improvements at thesame time. Otherwise, they wouldn’thave made it. This means that compa-nies will have to work ever hardersince their competition is stronger too.This is where the programs offered bythe North American Wholesale Lum-ber Association can help the industry.

Webinars & DistanceLearningSince so much in the industry has

changed lately, NAWLA has recog-nized that its members and the indus-try are looking for ways to learn aboutcurrent issues. In 2010, NAWLA rec-ognized this and for the first timefocused its education programs aroundfour pressing topics: finance and creditavailability, green building, workforcetraining, and the global supply chain.“We took a hard look at what we

were providing our members anddecided we want to get ahead of thecurve,” says Gary Vitale, presidentand c.e.o. of NAWLA. “The industryis hungry to learn about specific topicsthat impact operations and our educa-tion program is now designed to pro-vide that.”NAWLA says its webinars have

been particularly effective lately, as

NAWLA 2011New Business Programs

companies have cut back both theirtravel and training budgets. “Thewebinars allow employees to get theinformation they need without havingthe time and expense of an onsite pro-gram,” Vitale says. “It also hasenabled companies to have multipleemployees attend, which always helpswith the takeaways and long-termimplementation of the knowledge.”Over the last year, NAWLA’s

webinar topics have included creditavailability, China’s economic surge,the softwood checkoff, and new truck-ing regulations. NAWLA is alreadybuilding on this foundation by hostinga webinar on May 19 with an econom-ic forecast by Lynn Michaelis of RISI.Other topics in development includeupdates on China, transportation, andmore green building.“We are particularly looking at the

trucking industry. With the new safe-ty regulations and the price of gas, thelumber distribution industry could seea substantial impact,” says Vitale.

Right Information atthe Right TimeThe industry is moving fast and so

is NAWLA, to make sure you keep upwith it. Today, information moves atthe speed of the Internet, but compa-nies don’t always have the time tolook for relevant issues. Companieslooking for fresh, innovative, and rele-vant information can turn to NAWLAfor help.The lumber industry encompasses

many business types, from manufac-turers to distributors to serviceproviders. But they all have two thingsin common: they are generally focusedon lumber products and they all haveto manage a business operation.NAWLA is in the process of pro-

viding in-depth, detailed reports on a

NAWLA programs helpindustry survivors thrive

WOOD BASICS COURSE in March 2011 included a visit to McShan Lumber, McShan, Al.


NAWLA met with Brazilian companies at first American Hardwood Export Council pavilion in Brazil.

monthly basis to help the industry stayabreast of current issues. “This indus-try is at the heart of many of the bigissues of the day, such as sustainabili-ty, globalization, and taxes,” saysVitale. “We need to figure out a wayto inform our members in ways theycan’t get anywhere else.”Vitale notes that these reports will

address issues affecting both the lum-ber industry and small businesses.The first two topics will be the dra-matic increase in China’s demand forwood fiber and the impact ofCalifornia’s Cap & Trade Program.Future papers will include economicreports, business practices, and leg-islative reports.“The inclusion of legislative reports

may surprise some people, but thosehave a major impact on how we all doour business,” says Vitale. “For exam-ple, how many people in the industryknow that the current administrationhas proposed to eliminate LIFO (LastIn First Out) accounting practices?”NAWLA has indicated that they

aren’t trying to influence legislationand regulation, only to inform itsmembers of what they need to know.NAWLA has long been a member ofthe National Association ofWholesalers-Distributors, and it usesthat resource for much of its informa-tion.

Workforce DevelopmentA company is only as strong as its

employees. With the lumber industryundergoing so much change, NAWLAis building on its strong foundation ofworkforce development to meet theneeds of the industry.For decades, the Wood Basics

Course has been the flagship educa-tion course in the industry. Many oftoday’s leaders got their start there,and companies continue to send newemployees to learn how the industryworks. NAWLA offered the Wood Basics

Course in March 2011 at MississippiState University, the first time in yearsthat it was held in the Southeast. Theclass was one more step in the grow-ing partnership between NAWLA andthe College of Forest Resources atMSU. In May, the school will host thefirst-ever career exploration workshopfor the NAWLA Education Founda-tion.“Each Wood Basics Course

includes perspectives unique to theregion, and by increasing our presencein the Southeastern U.S., we can bettermeet the needs of the industry and ourmembers there,” says Vitale.The next Wood Basics Course will

be held at Oregon State University inCorvallis, Or., Sept. 12-15, and regis-tration has already opened.While the Wood Basics Course

offers introductory education on thelumber industry, NAWLA has recent-ly recognized the need for a next levelof training. One idea they are consid-ering is to create a second level lum-ber and management education pro-gram, which would create anotherlayer of management training to thebasic curriculum.“This possible new course will tar-

get managers who are already familiarwith the industry. The focus won’t beproduction and sales, but distributionand operation,” says Vitale.

Global NetworkingNAWLA is probably best known

for creating networking opportunitiesfor its members. Companies knowthey can go to NAWLA to learn moreabout national and regional network-ing, but they can now use their mem-bership to help with global networks.NAWLA members are involved in

both export and import activities, andcarry a variety of products. Last year,NAWLA become the only associationto be a member of both the Softwood

Export Council and the AmericanHardwood Export Council. By being amember of both organizations,NAWLA hopes to provide its mem-bers with the tools they need to suc-ceed in the global marketplace.“Our membership in SEC and

AHEC is already paying dividends.Last year, nine countries were repre-sented at Traders Market, from fourdifferent continents,” Vitale says.“This year, in conjunction with SECand AHEC, we’ve already met withcompanies from China, Brazil,Pakistan and the Mid-East aboutattending the show in Las Vegas.”The 2011 Traders Market will be in

Las Vegas Oct. 19-21 at the MirageResort & Casino. Registration hasalready opened, and NAWLA saysthat the number of exhibiting compa-nies registered is outpacing the lastfew years. The addition of more globalbuyers and suppliers to an alreadystrong show should increase its valueto everyone attending.The industry has changed the last

few years, and so has NAWLA.Companies looking to find that extraedge should consider what NAWLAhas to offer. Their established educa-tion, networking, and information pro-grams can often make the difference.

– More detailed information on the ser-vices and programs offered by the NorthAmerican Wholesale Lumber Association,including membership possibilities, can befound at www.nawla.org.


THE LUMBER AND building materialsindustry in the eastern U.S. will

see some improvement in the short-term. Unfortunately, key risks to theU.S. economy will quickly eclipsethese short-term gains. Looking at the fourth quarter and

beyond, the adage “bad news comes inthrees” summarizes Forest2Market’seconomic outlook: high oil prices willpush the U.S. into the second leg ofthe double dip recession, and this willdelay the onset of a full recovery forthe housing market.The short-term improvement will

come when the protracted winterweather in the Midwest and theNortheast ends. Weather there hasdelayed the start of the building sea-son, significantly dampening southernyellow pine lumber prices. Whenspring settles in and the building sea-son begins in earnest, three months ofdemand will be compacted into theremaining two months of the season.Once mills clear their existing inven-tory, prices will edge higher.Higher oil prices are the most sig-

nificant of all the risks the economy

NAWLA 2011By Suzanne Hearn, Forest2Market

faces at this time. Just as increasedconsumer spending began stimulatingthe U.S. economy (the key to a full-force recovery), unrest in the MiddleEast and North Africa (MENA),increased demand for oil from Japanand China and the weakness of thedollar all combined to drive the priceof oil higher. The monthly averagespot price for West Texas Intermediatecrude oil rose sharply in March, upfrom $89.58 per barrel in February to$102.94 per barrel (see chart below). We expect prices to remain high

even if demand falls off in response tothose high prices. When we look at thespectrum of factors that influence oilprices, they all point in one direc-tion—up: • Investors are pricing in supply

risks. Although some of the MENAconflicts appear to have passed thepoint of crisis, they could be re-ignitedat any moment because the underlyingcauses of the discontent remain. • Doubt persists that production

from other OPEC countries (especiallySaudi Arabia) can be ramped up toreplace the lost Libyan output. In

2010, Libya produced roughly 2% ofthe world’s supply of oil, or just under1.8 million barrels per day.• OPEC countries argue there is lit-

tle they can do to keep prices under$120 per barrel since prices are beingstoked by speculators rather than asupply shortage. UAE Oil Minister,Mohammed bin Dhaen al-Hamli,commented: “International marketsare choosing to ignore market funda-mentals and bet on the worse case sce-narios.”• Post-earthquake idling of some of

Japan’s nuclear power plants willleave a power vacuum that will befilled with more traditional powersources. Replacing this lost capacitywill require the oil-equivalent of400,000 barrels per day, about 0.5% ofthe world’s 2010 consumption. • Japan’s tragedy has caused other

countries, including Germany,Switzerland, Italy, China, Israel andVenezuela, to consider suspendingtheir nuclear power programs.Increased demand for oil will reflectthe extent to which these countries’programs are indeed halted.• A succession of interest rate

increases in China has succeeded onlyin slowing the rate of growth in oildemand rather than actually decreas-ing it.Together, the increased demand

from Japan and reduced supply fromLibya, will leave a deficit of 2.2 mil-lion barrels of unmet demand in theworld, about 2.5% over 2010’s level.Add to these the U.S. EnergyInformation Agency’s estimate ofgrowth in global demand of 1.5 mil-lion barrels in 2011 and another 1.6million barrels in 2012, and that total

Bad news, good newsKey risks to U.S. economy mustpass before housing recovers


grows to 5.3 million barrels, morethan 6% higher than 2010 levels.Because of these increases, oil pricesare likely to remain above $100 perbarrel much longer than they have inthe past.At these levels, oil prices represent

a key risk to the U.S. economy.Higher energy prices cut into house-hold budgets and siphon off moneyconsumers would have spent in othersectors of the economy. Buildingproducts manufacturers will also feelthe effects of higher fuel costs.According to the Institute for SupplyManagement (ISM), the prices-paidindex rose by 3.0 percentage points formanufacturers in March. Wood prod-ucts, construction and forestry indus-tries all paid higher input prices inMarch, and inflationary concerns con-tinue to grow. Profits margins will feelthe pressure.The extent to which higher oil

prices will affect the economy is agame of probabilities. If oil pricesaverage $100 a barrel for the year,growth could be 0.3% lower than ifprices had stayed at last year’s averageof less than $80 a barrel. Our forecastfor GDP factors this possibility in (seechart at right). If prices push evenhigher, to the $125-per-barrel level,economic growth would be a full per-cent lower. A few months at $150 perbarrel and a second recession is nearlycertain. As the chart at right shows, our

forecast does show a brief downturninto the second leg of a wobbly W-shaped recession. Lasting roughlythree quarters, we anticipate the bot-tom will be reached in the first quarterof 2012. By the first quarter of 2013,the growth rate will exceed three per-cent, and—barring unforeseen

events—stay in positive territory. Because residential construction is

a lagging economic indicator, thestalled housing market will exertdownward pressure on the economy.The market for new construction con-tinues to be abysmal: the number ofbuilding permits issued in February2011 was 17.5% below December2010’s level, and the number of hous-ing starts also plummeted (see chartabove). Builder reticence to boost activity

in the short run is understandablewhen you take into consideration:• Inventory of existing homes is

hanging just under the nine-monthmark.• Inventory of new homes is nearly

the same.• Another 1.8 million homes are sit-

ting in shadow inventory (in, or on thebrink of, foreclosure).• Another two million homeowners

are at least 50% underwater on theirmortgages (some portion of these willeventually wind up in short sales orforeclosure). • Clearing the market of these

issues will take two years.Several factors are exacerbating

residential construction woes. Takentogether, they signal that the climb outof the abyss will take longer and bemore difficult than expected.• The median price of a new home

is $74,500 (48%) higher than themedian price of an existing home. Inthe past, the differential typically ranabout 15%.• Home prices continue to fall. The

Case-Shiller Home Price Index hasdeclined for six months straight.According to Standard & Poor’sDavid Blitzer, “none of the statisticsare indicating any form of sustainedrecovery.” • Looking ahead, the Federal

Deposit Insurance Corporation (FDIC)is considering a plan to require a mini-mum 20% down payment for mostresidential mortgages. The only remedy for the state of the

housing market is time. Once we makeour way out of the likely second reces-sion, the two years of overhang inhousing inventory will be cleared fromthe market. And once these two piecesof bad news are behind us, populationgrowth and pent-up demand will drivethe recovery in the residential con-struction market. In an average year, 1.1 million new

households are formed in the U.S.During the recession, that number fellto 0.5 million. For the period since therecession began, the backlog ofdemand stands at roughly 2 millionhouseholds. Post-recession, householdformations are expected to range from1.2 to 1.4 annually. There, finally, isthe good news.

– Suzanne Hearn is sales & marketingmanager at Forest2Market and host ofF2M’s Economic Outlook podcast.Contact her at (704) 540-1440 [email protected]. Listento the podcast at www.forest2market.com.


“TRAGEDY AND COMEDY are buttwo aspects of what is real,

and whether we see the tragic or thehumorous is a matter of perspective.”

– Arnold Beisser

Perspective factors heavily into anyassessment of current business condi-tions. Many lumber companies todaycontinue to bravely face an environ-ment best described as perilous.Some—through timely decisions,savvy management, internationalopportunities, and plain good for-tune—are operating profitably. Tosum it up, the present business envi-ronment remains mixed at best.

Credit continues to be an importantelement influencing these circum-stances. Consumer credit is closelywatched by many lumber businessowners, given the obvious impact onlumber demand by housing construc-tion and home improvements. Aswidely reported elsewhere, we alsoclosely monitor employment metrics,inflationary undercurrents, tight lend-

NAWLA 2011By Jim Bartleson and Chuck Curl,Blue Book Information Services

ing practices, skyrocketing fuel prices,and volatile consumer confidencebecause of the powerful, direct corre-lation these factors have on industrycommerce.

With specific regard to creditextensions to businesses—for opera-

tional or capital requirements—we’veobserved relatively limited instancesof new, expanded loan packages.Generally speaking, such programshave been issued to well capitalizedfirms with strong credit ratings, seek-ing to acquire failing companies orassets at fire sale prices. As for exist-ing credit facilities, notes accompany-ing the balance sheets we review con-tinue to reflect negotiated amendmentsto loan terms and covenant modifica-tions (including required financialratios). In addition, we have observeda number of companies reducing theirreliance on bank credit or decreasingleverage by reallocating cash other-wise used for operating expenses topay down debt.

From financial statements andaccounts receivable aging data, weagain see a mixed bag with respect totrade credit. Here are some generalobservations:

• Timely remittances on accountspayable continue to vary, with debtorquality and cash flow throughout the

Credit plays vital role inlumber industry outlook


supply chain as the logical primarydeterminants. As evidenced below,reported Blue Book “pay indicators”reflect this variability.

For companies with reported payindicators, about 40% pay “mostlywithin terms.” Nearly 35% remit“regularly beyond terms.”

It should be noted, however, thatthis distribution of pay has been rela-tively consistent over the past severalquarters. In other words, we have notobserved a noticeable decline (orimprovement) in industry pay duringthat span.

• Overall, credit portfolio qualityremains a focus. Most creditors con-tinue to reduce their exposure to high-risk, slow-pay accounts while concen-trating on the retention of moderate-to-low risk accounts, even acceptingsome slowness in pay.

Providing an industry perspective,Roger Peterson, credit manager forWest Fraser Timber Co. Ltd.,Vancouver, B.C., comments on theeconomy’s broad impacts and thereal-life applications regarding tradecredit: “After years of unlimitedbuilding and open purse strings, 2007hit our industry like a ton of bricks.Credit limits were reeled in, our cus-tomers were in dire financial straits,as were the banks they were dealingwith. The great recession has taughtus a hard lesson. It is my belief thatcredit will for many years to comeremain a privilege that is earnedrather than a right that is given.”

As observers of credit conditionsfor more than a century, we affirmthat the circumstances of the past twoyears have indeed been the most chal-lenging in more than a generation.We share the view that safely extend-ing credit—by following sound creditpolicies and using trusted credittools—is critically important.

Finally, we are also optimistic thatforecasts for modest reductions inunemployment will contribute to astrengthening economy. As thisunfolds, we believe the credit cli-mate—including lending and trade—will certainly improve.– Jim Bartelson is executive v.p. and

Chuck Curl is director of ratings at BlueBook Services, publisher of the LumberBlue Book. Contact them at (630) 668-3500, [email protected],or [email protected].


THE LUMBER INDUSTRY is facingsome stiff challenges: a signifi-

cant loss of businesses during therecession, a rather low profile in thepublic eye, and the need to bring freshideas and new talent to the industry.

The North American WholesaleLumber Association is working toaddress those challenges and createnew opportunities through the newlyformed NAWLA Education Founda-tion. The primary objective of the not-for-profit foundation is to seed growthin all sectors of the industry, byattracting a new generation of leadersand equipping them for success inbuilding and managing sustainablebusinesses in the new green economy.

The first initiative funded by theNAWLA Education Foundation is athree-year pilot program to introducecareer development programs to col-lege students in every region of theU.S. The very first program of its kindbegins this May with a career explo-ration workshop at Mississippi StateUniversity through its College ofForest Resources. Undergraduate andgraduate students who attend the five-day workshop will be introduced tothe entire supply chain of the NorthAmerican lumber industry and willthen be linked to summer internshipsat a variety of companies, contributingin such areas as accounting andfinance, marketing and sales, engi-neering and operations.

Gary Vitale, NAWLA president,sees benefits for the entire industry—from timberland owners to the whole-

NAWLA 2011By Chuck Thomas,CT Creative

sale businesses NAWLA represents tothe retail sector—in this effort tointroduce young talent to the vastcommercial and career opportunitiesin lumber.

“As an industry, we’ve advancedsignificantly in technology andimproving the distribution channel,”he observes. “But outside of ourindustry, young people are not famil-iar with the lumber business. Theyhave no idea of the billions of dollarsof commerce in lumber and the careeropportunities available. This programis intended to educate students from avariety of majors on career options,give them hands-on experiencethrough internships, and ultimatelymotivate them to make their careers inthe lumber industry.”

The NAWLA Education Founda-tion is working to identify a host uni-versity in each region to roll out thepilot program over the next threeyears. NAWLA has enlisted DovetailPartners, a highly regarded think tankand educational resource specializing

in the forestry and forest products sec-tor, to work with each university todevelop a career development pro-gram uniquely suited to its region’sforestry assets and needs.

The pilot workshop at MississippiState University draws upon its rela-tionship to NAWLA through theWood Basics course that has beenoffered for years, its strength in bothforestry and business studies, and itsaccessibility to timberlands and mills.

Andy Ezell, professor and head ofthe Department of Forestry atMississippi State, explains that thecampus is located in the center of the“Wood Basket,” which stretches fromEast Texas to North Carolina and fromthe Gulf to Tennessee. As a result, thecampus boasts its own 8,000-acre for-est, where it conducts forestryresearch, and stands in close proximityto mills and manufacturing and distri-bution operations.

Professor Ezell says the careerworkshop fills a big gap by introduc-ing non-forestry students to the busi-ness opportunities in lumber and woodproducts. He believes that few peopleoutside of the industry understandwhere wood comes from and how thesupply chain turns tree seedlings intolumber, furniture, paper and thousandsof other everyday items.

“This workshop provides an oppor-tunity for our very best students on thebusiness side,” he notes.“The whole-sale lumber sector is probably the leastknown aspect of the business.”

In addition to MBA students and

Growing talent inthe lumber business


business undergraduates, the program is designed to attractstudents from construction, engineering, design, environ-mental science, and other relevant majors.

The pilot Career Exploration Workshop at MississippiState includes both on-campus presentations and fieldtrips:Day 1: The basics of forest ecology, management and

certification, and a field trip to view forest managementand harvest operationsDays 2 and 3: The business of lumber (prod-

ucts/manufacturing and the supply chain/distribution) andtours of state-of-the-art sawmills, lumber manufacturingfacilities, and distribution centersDay 4: Green building concepts and a field trip to see

how a green building project incorporates sustainablewood productsDay 5: Ecosystem markets, a career panel, and the

NAWLA internship programThe first workshop will set the stage for future work-

shops, but Vitale does not expect that the Mississippi Stateexperience will be replicated exactly at other universitiesinvolved in the NAWLA program, due to the unique char-acteristics of the lumber business in each region.

Also under development is the internship program,which will be available to participants in the CareerExploration Workshop. For the first crop of students,NAWLA will be instituting a system to match each stu-dent’s experience and interests with a participating compa-ny’s need for interns, whether in wholesale lumber, timber-

lands, or retail operations.“The career development program is intended to be an

industry-wide initiative,” says Vitale. “We anticipateattracting top, qualified students who will be motivated andexcited to contribute to businesses within our industry. Weencourage groups from every sector to contact us if theyare interested in participating in the internship program.”

The hope is that industry interest will grow as the pro-gram expands over the next three years. Still, the fledglingprogram is in the experimental stage. “We don’t want to dotoo much too fast,” Vitale explains. “We want to makesure we do it right.”– Chuck Thomas is president and founder of CT Creative

(ctcreative.com), a Chicago-area strategic marketing firmfocused on helping companies and organizations grow andthrive. In his work with NAWLA, he has overseen extensive mar-ket research and brand positioning for the lumber industry.Contact him at [email protected].

HOOD LUMBER““LLoonngg aanndd SSttrroonngg””

Phone 601-264-2559Fax 601-296-4740www.hoodindustries.com

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CSA. CAPACITY. CONGESTION. Arethese three words included in

your business plan? Is your transportation manager

thinking about the impact of theseissues? Does your company have aplan for shipping its products andmanufactured goods if the drivershortage impacts transportation avail-ability?

If you answered “yes,” congratulateyourself—you’re a member of a smallgroup that is on track to ensure itsproducts continue to ship safely andefficiently from point-of-origin tofinal destination. But if the questionshave you scratching your head, it’stime to dive in and learn how theseissues will impact your supply chainmoves, cost and business liability.

CSAIn December 2010, the Federal

Motor Carrier Safety Administration

NAWLA 2011By Don Osterberg, Schneider National

(FMCSA) launched Compliance,Safety and Accountability (frequentlyreferred to as CSA), a program thatreplaces SafeStat with the objective tomore accurately measure the safetyperformance of motor carriers andcommercial drivers. CSA will helpFMCSA and its state partners moreeffectively use limited resources toidentify high-risk practices and behav-iors in carriers and drivers and to helpreduce large truck-involved fatalitycrashes.

CSA uses a Safety MeasurementSystem to score carriers and drivers onsafety-based violations involved incrashes and roadside inspections. Theprogram compiles the data into sevenBehavior Analysis Safety Improve-ment Categories (BASICs). Everyinspection violation within the BASICis time- and severity-weighted, andeach BASIC is ranked to trigger anintervention process. Once a scoring

threshold is exceeded (often referredto as an alert level), a carrier will besubject to:

• A warning letter• Additional roadside enforcement• On- or off-site investigation• A comprehensive review• A cooperative safety plan• A notice of violation• A notice of claim interventionsCSA will put added pressure on the

trucking industry. The result will befewer—but safer—truck drivers avail-able for hire. You can’t put a price onsafety, but as the pool of available dri-vers with good safety records becomessmaller and competition to hire thosedrivers becomes more intense, it willinevitably add to the cost of trans-portation.

In addition to the economic impactCSA will have on carriers, shippers,drivers and consumers, the publicavailability of a carrier CSA scoremay increase a shipper’s liabilityexposure. If a non-CSA compliant car-rier is involved in a crash, liabilitycould extend to the shipper by way ofinadequate carrier qualificationprocesses or standards in makingfreight tendering decisions.

In litigation involving the previoussafety scoring system, plaintiff’s attor-neys struggled to link SafeStat scoresand crash risk. With CSA, there willbe no struggle linking the two.Educating transportation managers onCSA and selecting carriers compliantwith CSA BASICs will be crucial tothe success of shippers.

CapacityWith 758,682 carriers in the

Department of Transportation’s data-base, only 92,184 carriers (12.15%)have sufficient data to have a CSAscore. Of those carriers, 52,967 have

Building the foundationfor safe shipping


at least one alert-level CSA BASICscore. With said carriers employingmore than 1.5 of the nation’s 3.6 mil-lion truck drivers, nearly 50% of thecapacity is under DOT scrutinybecause of high CSA scores.

With the growing U.S. TruckTonnage and Truckload Freight Index,there will be more demand for drivers.Yet federal regulations like CSA andpotential changes to Hours of Servicerules will combine to create a pinch inthe driver pool.

With the FMCSA’s proposedHours of Service changes, we believethe rules will impact driver productivi-ty (thus impacting capacity) and willcome at a cost that cannot be absorbedby carriers alone. The market will bearadditional costs in the form ofincreased shipping rates and decreasedproductivity. Reengineering existingroutes, updating and testing dispatchsoftware, renegotiating contracts andprices with customers, and retrainingdrivers are a few tasks that will needto be addressed when the rules change.

CongestionA final factor influencing the trans-

portation industry is infrastructure.Government spending has been signif-icantly underfunded for several years,resulting in excess roadway conges-tion. Congestion and the lack of safetruck parking are important issues onU.S. highways and are projected toworsen over the next several years.The decreased productivity that willresult from the Hours of Service rulingwill only accelerate congestion.

Increased investment in new trans-portation infrastructure will benefitand improve public safety for drivers,carriers, shippers and the motoringpublic. Should legislation be draftedor passed, tax increases in the form offuel or mileage user fees and tollingwill be implemented to offset the costof highway improvements.

The Blueprint for SuccessTo keep the supply chain running

efficiently, shippers should educatetheir transportation teams on what ishappening in the industry and learnhow the changes or proposed legisla-tion will impact shipping times, ratesand business liability.

One of the most important thingsfor shippers to do is solicit CSA scoresof the carriers they use. Then they can

work to develop a system for monitor-ing CSA scores and tendering freightto safety-conscious carriers who willensure their products are deliveredsafely.

Although your transportationproviders are the ones operating in thiscomplex environment, your businesscan’t afford to sit back and allow thechips to fall where they may. Getsmart on the issues and make sure youselect transportation providers thatprotect your best interests. If they are

prepared, informed and operatinglegally, you will be in the driver’s seatwhen it comes to mitigating threeadditional important issues: risk, lia-bility and cost.– Don Osterberg is senior vice presi-

dent of safety, security and driver trainingfor Schneider National, Green Bay, Wi.,provider of truckload, logistics and inter-modal services. Contact him viawww.schneider.com or get more info onCSA at csa.fmcsa.dot.gov/default.aspx.


COMING OFF ITS fifteenth successfulyear, the NAWLA Traders

Market is shaking things up and mov-ing to Las Vegas this year. It will bethe first time the show is held in a cityother than Chicago or Dallas. The2011 show is slated for Oct. 19-21 atthe Mirage Resort & Casino.

Since 1996, Traders Market hasheld a unique position among lumberand building material tradeshowssince it is the only one that is focusedalmost exclusively on the lumber sup-

ply chain. Unlike other shows, theexhibitors are almost always manufac-turers of lumber and lumber-relatedproducts, not machinery or otherequipment providers.

Last year, the show hosted 240exhibiting companies and 1200 indi-vidual attendees, representing a totalof 500 companies. These companiescomprise all aspects of the supplychain: manufacturers, wholesaler-dis-tributors, and service providers.

This focus on supply chain partners

NAWLA 2011NAWLA Traders Market

has fostered an unrivaled atmospherefor networking. In today’s globalmarketplace, Traders Market providesa chance to meet current and prospec-tive clients face to face. In an industrywhere million dollar deals are stillmade with a handshake, that personalnetworking is invaluable.

Last year’s show in Chicago creat-ed considerable buzz. Attendanceincreased more than 3% over 2009.The general feeling was that the econ-omy had finally started to turn.NAWLA has indicated it wants tobuild on this momentum, whileincreasing the value for its membersand attendees.

“Each year, we survey the atten-dees and make changes and improve-ments to the show based on their feed-back,” says Gary Vitale, NAWLApresident and c.e.o. “Last year, wechanged the floor hours, increased net-working time, and boosted sponsorvisibility. This year, we want to con-solidate our position as the premiertradeshow for the lumber supplychain.”

While many of the final details ofthe show are still in development atthis time (such as speakers), the sched-ule and related events have been final-ized. Like last year, the floor showwill be open on Thursday and Friday,giving attendees a chance to returnhome or to stay and enjoy Las Vegasfor the weekend. Other new additionsto the 2010 show, such as the ProductShowcase, will also return for the2011 show.

Since the show will be on thefamous Las Vegas Strip, NAWLA isplanning to add some special Vegasflair to the traditional Traders Marketnetworking and business opportuni-ties. For example, show attendees will

NAWLA Traders Marketmoving to Las Vegas


NAWLA Traders Market, the premier trade show for lumber wholesalersand manufacturers, moves this fall to Las Vegas, Nv.

have the chance to get special discounts for Las Vegas areagolf courses, providing an additional venue to conductbusiness. Networking receptions will take advantage ofspecial areas at the Mirage offering a “Vegas flair,” such asSiegfried & Roy’s Secret Garden and Dolphin Habitat.

“Our goal is to provide a great networking opportunitywhile recognizing that Las Vegas is a one-of-a-kind loca-tion,” says Vitale. “The entertainment options in Las Vegasare limitless. After the last couple of years, the industrycould use having a little fun while also getting much need-ed work and sales done.

“We’ve also recognized the global supply chain is justthat: global. As the domestic market has continued toshrink, the global market is growing. We want those com-panies to be a part of the show also.”

Over the last two years, NAWLA has rapidly expandedits participation in global issues. The 2010 Traders Marketincluded companies from nine different countries. Thisyear, NAWLA is working with other organizations, such asthe Softwood Export Council, and the American HardwoodExport Council to connect overseas buyers and sellers. InMarch 2011, NAWLA visited with some of the largest lum-ber companies in China to talk about attending the show,and the feedback has been very positive.

The Traders Market website—www.nawlatradersmar-ket.com—has complete information on the schedule, fees,floor layout, hotel reservations, and sponsorships.Registration has already opened for exhibiting companiesand individual attendees. For the first time, registration willbe exclusively online.


THEY SAY HOMEWORK is for kidswho want to get ahead in life. But

the same practice holds true for life-long learners, especially those whodesire to move forward in their career.

Imagine if you went to spring train-ing and couldn’t hit a curveball.Fastballs were no problem; in fact,you often hit the hardest fastball overthe fence with minimal effort. Sincethe curveball always made a shmuckout of you, how long would you stickaround before you were sent back tothe minors to figure it out? Not long!

So let me start you out with a fewquestions, and if you get them right,you get to stick around for additionalhomework. Do you agree that mostsalespeople are boring? Most businesstelephone calls are boring? Most busi-

NAWLA 2011By Bill Blades

ness letters are boring?The only time boring is a good

thing is in the mining and oil drillingbusiness. So, let me share a few tidbitsso upcoming visits with clients andco-workers add a sheen to their day…and promising results to your future. Ifyou pay attention and apply but one ortwo of these action items to your dailyroutine, you’ll find yourself as a wel-come face in the big leagues withfresh ideas. It’s your willingness toadjust your swing in sales that willultimately reward your actions.11.. The “5 P’s” represent “prior

preparation prevents poor perfor-mance.” Instead of just showing up,prepare a plan that leads to a happyending. It’s like making a movie, but

you run it backwards with the endingbeing “How do I want this movie toend?” Your movie includes an outlineof things you want to learn and assuressuccess for you and your client.22.. Remember that real selling is

not telling. It’s 90% asking the rightquestions while taking great notes andonly 10% talking. Brevity at its best.

Why? Asking important questionssets you apart from the pack who justdrones on and on. It’s this simple!Would you want a surgeon operatingon your brain who didn’t ask ques-tions and obtain requested brainscans?33.. Determine the client’s person-

ality style. Is she a driver/dominant-

Prepare for meaningfulsales presentations…and happy endings


type person? If so, be quick and effec-tive. Don’t ask idiotic questions suchas “Oh, you like golf?” after seeing adozen of her framed, golfing photos.Stick to the agenda of what you laidout ahead of time.

If she’s a steady/compliant person,she will want details, so utilize litera-ture and data more than your vocalcords. Providing written data willenhance her trust in you and lower herresistance to a scary change.

If she is a high-I or influencer,she’ll love to talk, which is terrificbecause you won’t have to. Just listenand ask questions about what youheard and take notes. If you are ahigh-I, be careful as two high-I’s inthe same room can sound like aNational Speakers Association con-vention, a couple thousand peopletalking and no one really listening.The convention sounds like a 747going down the runway. Doing yourhomework will make a difference!44.. Anyone can handle big, rou-

tine tasks, but smart people pay atten-tion to every, tiny detail. Most peoplehave a short attention span—for mostmales, it’s only about three sentences.That’s why droning on and on is awaste, for both speaker and audience.I’d trade one of my TV remote-con-trols any day for one that could changesalespeople until I found one I liked.

Little details include using your carmirror or a restroom to insure yourappearance is perfect. A loose tie is asmuch a killer as a bugger in your nose.Yes, I’ve seen that more than once.

Remember, their first impression ofyou is made before the first word isever spoken. Be the person who isboth respected and admired, the versa-tile hitter who can hit any pitch to anypart of the park at any time.55.. What is your greeting going to

be? If it’s pretty much the same foreveryone, you’ll be off-target and bor-ing. And often your first question isgoing to speak volumes about yourpersonality. If your first question is thesame one you used yesterday, you’renot thinking and planning. We allknow that light travels faster thansound. That’s why some peopleappear bright—until they speak.

I was field training a “salesperson,”and Russia had just invaded Georgia.The salesperson, thinking we werediscussing the state of Georgia, asked,

“Why Georgia and not Florida?”66.. So, how can you set up a great

first visit? When the client advises, viaphone or email, to pick “any timebetween 9:00 and noon,” ask for 9:46a.m., then send a written confirmation.Dear Mr. Jones,To confirm our meeting, I will be at

your office:• Thursday, October 23• at 9:39 for our 9:46

Some of you are thinking, “That’stoo cutesy for me.” If so, please checkyour attitude and unwillingness to try

new things at the door. Better yet,pack your bags and head back to theminor leagues. Even small innovationcreates big differences. You’re in thepeople business… so set the tone thatyou’re a different breed. The last para-graph in your note might read:And to confirm, I’m not bringing

any samples or literature. I asked forjust 11 minutes to learn. You’ll like mydifferent approach, and I’m excitedabout meeting you!

– Czar BladesAnd a hand-written postcard beats

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77.. See how the above point setsthe client’s mindset into the assump-tion mode of “I think I’m really goingto like this guy.” I coached a salesper-son through the process for our initialvisit with a Fortune 500 client inAtlanta. The coaching also includedthe salesperson not scheduling anyother client visits before this importantappointment. Rather, I told him to goget his car washed just before the visit.He did such, but there were severalpieces of white lint on the front seats. Ihelped him remove them –and a smearon the passenger side window.

When we arrived, the client was inthe lobby. Q: And what was he hold-ing? A: Our postcard. Q: Why was hein the lobby with the postcard? A: Tosee if we were on time, of course, buthe was also looking forward to meet-ing us.

We departed the lobby for the car

and the client got in—and lookedaround the spotless vehicle. He didn’tclose the car door or put his seat belton. He then looked at the wash cloth Ihad the salesperson put under hisaccelerator and said, “You’re right…you guys are different.”

If you’re thinking I went to theextreme with the wash cloth idea,you’re correct. But the last thing aclient sees upon your departure is theback of your jacket—and to the backof your shoes. The smallest detail canhelp (or hurt). All too often the clientis thinking, “Is this the person I reallywant to hitch my wagon to?”88.. Whether meeting with clients

or co-workers, remember that manypeople are under some form of stress,get bored with mundane meetings, orthey have many things on their mind. Ico-authored a book with Bruce Jenner,

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the former Olympian. The publisherasked him, “How do you and yourfriend Billy Blades overcome attentiondeficit disorder?” It’s a simple formu-la. Major time on major things, minortimes on minor things—and clients arenot minor things.

As I stated above, I ask importantquestions so that I get important infor-mation. If the client or co-workerstarts meandering off-course, I’ll ask aquestion such as “Miss Jones, youmentioned a minute ago that you____________. Can you tell me moreabout that?”

Be the orchestra conductor whocontrols the flow of information.Allowing them to chit-chat will trapyou into a mediocre meeting—and anoutcome of undesired results.99.. Remember to limit your talk-

ing… the plague that’s rampantamong the sales profession. Thesenon-stop talkers are 98% to 99% ofthe sales profession, and they give therest of us a bad name. When fieldtraining, I witness it in abundance.

• Salespeople (and managers) inter-rupting. It’s not only rude, but you’resending a message that what you haveto say is more important than whatthey are sharing.

• Salespeople will open theirmouths repeatedly while the client isspeaking. It’s a clear sign of not listen-ing (and learning), and it alerts boththe client and me that the salespersonis not listening. Incredibly, I usuallymake more notes than the salesper-son—and the client sees and appreci-ates it… often with a wink or nod.

When we leave, I often ask thesalesperson, “What did he mean whenhe said ‘____________?’” More oftenthan not, the reply is “I didn’t hear


that.” If the salesperson doesn’t interrupt or continuouslyopen his mouth, he “steps” on the last word out of theclient’s mouth. No pause or follow-up question. Just imme-diate talking.1100.. Be worldly. Read everything worthwhile so that

you are constantly learning. If you can share insight onalmost any topic, you’re a serious student. And if you studyclients like a book, you’ll be able to clip and mail articles toa client who is keen on the subject matter. I like USA Todaybecause the client usually reads their local newspaper. Thebig challenge here? Most salespeople don’t read newspa-pers or professional books. 1111.. Your departure must be as cheerful and busi-

ness-like as your arrival. I read in Spirit that “optimisticsalespeople outsell their pessimistic counterparts by 56%.”I believe the percentage is much higher than that, but it isproof that half of the people you meet are below average.

Tal Ben-Shaher, author of Being Happy: You Don’tHave to Be Perfect to Lead a Richer Life, wrote, “There aretwo kinds of people who don’t experience painful emotionssuch as disappointment or anger or envy or sadness or anxi-ety: psychopaths and the dead. However, to feel happy, weneed more than that. We need what we’re experiencing tobe meaningful.”

If you follow my suggestions, you’ll be looked to as atrue provider of value at every client and co-worker meet-ing. Remember there also are unique opportunities to mailarticles and other things to bring joy and value to others.

It’s a method to grow your market. 1122.. For worthy clients, follow up in writing to state

what both you and the client agreed to do, including the duedate for the next step(s). If you don’t, you’re just hopingthe client will remember everything both of you agreed todo. Accountability reigns supreme, so never look at the fol-low-up card as just another client visit. Email if you wish,but icing on the cake is to also mail a handwritten note.

If someone tells you life is too short to do all of thesethings, I suggest you tell them, “If you’re not willing to try,I’m afraid life for you will be too long.” Never argue withan idiot. He’ll drag you down to his level and beat you withexperience. And besides, the idiot went down to the minorsand you nailed your spot in the big leagues!– Bill Blades, CMC, CPS, specializes in growing people and

revenue in sales and leadership. Contact him at (443) 477-0061or [email protected]. Visit www.williamblades.com.

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I WAS RECENTLY ASKED what’s the worst single piece ofadvice to a salesperson I’ve ever heard. Wow. I loved

this question. I don’t think I’d ever been asked it before.I can’t identify just one single piece of advice. I’ll have

to opt for two. I’m going to identify them, and then explainwhy I think they are so damaging. They are “Be yourself”and “Learn on your own by trial and error.”

1. Be yourself.I just read, on one of the LinkedIn groups of which I am

a member, a newly self-appointed sales trainer advisingsalespeople to “just be yourself.” That is good advice ifyou are naturally self-motivated, goal-driven, and highlyorganized; if you are intelligent, personable, empathetic

NAWLA 2011By Dave Kahle

The absolutelyworst sales advice

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and sensitive; if you have great listen-ing skills, and if you possess the abili-ty to connect with anyone, paint wordpictures, tell enthralling stories, andask for action.

If that’s not you, then being your-self isn’t quite good enough. You’llhave to work on some things if youwant to become better. Almost everysalesperson I have ever met, myselfincluded, has some rough spots thatshould be smoothed out.

As a professional salesperson, youare never finished with your lifelongtask of making yourself better. Theultimate challenge for professionals isthe constant need to change them-selves in order to become better. Ittakes drive, discipline and energy,continually applied and rightlyfocused, to improve.

“You’re okay the way you are”may be an idea instilled in you byyour mother in order to make you feelgood about yourself, but in the realworld of commerce and sales, it is abromine that takes the energy out ofthe process of improving yourself,and provides an easy hiding place forthose who are not motivated to excel.

The truth is, you are not goodenough! Not yet.

If you are a professional, you getthat. You understand that you can,and should, continually improve and

make yourself better.Vince Lombardi said, “We will

constantly strive for perfection, know-ing full well that we will never attainit, because no one is perfect. But wewill strive for perfection, for in theprocess we will catch excellence.”

Which would you rather? A salesforce of people who think they justneed to “be themselves” to do well.Or a group that thinks they canalways become better, that there stan-dards for how you do sales well, andthat they need to work hard and con-sistently to enhance their skills,improve their practices, and developtheir competencies. A group whostrives for perfection.

Silly question. If a sales trainer tells you that you

just need to “be yourself,” run fromthem.

2. Learn on you own,by trial and error.

Certainly, learning by trial anderror is possible. We all do it. It justisn’t very efficient, nor very effective.

When I say it isn’t very efficient, Imean that there are quicker, easierways to learn and improve than torely exclusively on trial and error.Look, other people have gone beforeyou and figured out this thing called“sales.” There is a body of knowledge


about how you do sales well. You can spend five years try-ing to figure it out on your own or you can buy a book, bysomeone who is an expert in it, and learn far more in fivehours. Which makes more sense?

For the life of me, I cannot understand the prevailingidea among employers that their salespeople will just learnon their own, by trial and error. From my personal experi-ence, I believe that only about 5% of employers actuallyinvest in the growth and development of their salespeople.

Nor do I understand the 95% of salespeople who havenot spent $20 on their own improvement in the last 12months.

I am amazed that so many people think they have thetime to learn exclusively by trial and error. I don’t. When Ifirst began my consulting practice, I went out and got allthe books on how you build a consulting practice. When Ifirst starting speaking and presenting, I hired a coach tohelp me develop quickly. When I wrote my first book, Iread all the books on how you do it before I began to writeit. I couldn’t afford to waste time and money making stupidmistakes.

When I say it isn’t very effective, I mean that most peo-ple, most of the time, get it wrong! Most of us, myselfincluded, have distorted views of how we appear to otherpeople. We have distorted views of how our actions impactpeople, how the customers really felt, and why we didn’tget the order. If we base our decisions about what’s effec-tive on the basis of our perceptions of what we did well andpoorly, we will be wrong much of the time.

As evidence of this, I’ll appeal to your own experience.Sales managers and sales trainers, how many times haveyou made a call with a salesperson, debriefed afterward,and discovered that the salesperson didn’t have a clue as towhat really happened in the sales call? In my experience, itis most of the time. I’m not picking on salespeople. It ishuman nature. We all see reality through our unique per-spectives, we all put our personal spin on things.

A study was done a few years ago to see if salespeoplecould identify their most effective practices. Two hundredgood salespeople were interviewed, and they indicated thepractices they thought brought them the results. Guess whathappened when the researchers accompanied them into thefield to verify their ideas? There was “no relationship”between what they said they did and what they actually did!

Now, don’t misinterpret what I am saying. We should alllearn by trial and error. Analyzing our failures and chang-ing our behavior to avoid them in the future is a classicapproach to personal growth, and a discipline to which weshould all adhere. My problem is with those who promote itas the exclusive way to learn to sell well. It is neither effi-cient nor effective.

The advice to “be yourself” and “learn exclusively bytrial and error” are two of the most pernicious ideas in theworld of sales. Don’t let them misguide you!– Dave Kahle has trained tens of thousands of distributor and

B-2-B salespeople and sales managers to be more effective in the21st Century economy. He’s authored nine books, including hislatest, How to Sell Anything to Anyone Anytime. Reach him at(800) 331.1287 or via www.davekahle.com.


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LERS EXPO

LUMBERMENS ASSOCIATION OF TEXAS held its 125th annual con-vention April 7-9 at the Worthington Hotel, Fort Worth, Tx. [1] KirbyEwing, JoAnn Gillebaard. [2] Brian Suggs, Jarrod Brashers, JamieHursh. [3] Lydia Hutchins, Charlie Sullins, Shannon Lowe. [4] CurtisDavis, Craig Marks, Bill Schmidt, Dean Ruonavar, Charles Bradford. [5]Mark Hartness, Donald Blevins. [6] Tim McCarthy, Rose Ruonavar,Brandon Bibb, John Misslin. [7] Joe Poe, Ron Longhofer, Tom

Westbrook, Bill Washerlesky. [8] Brian McCoy, Robert & Telisa Marsh,Meagan McCoy Jones. [9] Robbie Temple, Ric Vega. [10] MiaMontgomery, Jackie Tollett. [11] Jim Wilkinson, Scott Chapman, Teri &Isaac Hall. [12] Kelly Matthews, Wayne Miller, Ryan Traczewitz, Ginger &Melvin Faircloth. [13] Mike Rainwater, Gwen Milsap, Ron Park. [14] TonyRocha, Mark Maberry, Larry Hawkins. [15] Steve Harris, Myron Boswell.

(More photos on next two pages)


MORE LAT SHOW (continued from previous page): [1] Bruce Agness,Eddie Stafford, Don DeGroot. [2] Robert Harris, Betty Evans, NathanPotter. [3] Bennett Cromer, Mike McClendon. [4] Chad Mizell, RandyWarner, Kendal Garrison, Byron Pinder. [5] Kory Klein, Ben Meachen,Steve Hickman. [6] Herman Sanchez, Sandra Hamilton, Chris Crucitt,John Smith. [7] Roy Deering, Jeff Christensen. [8] Jason Blair, RoyceChristopher. [9] Dan Coleman, Calley Fromme, Melba Coleman. [10]

Joe Breeden, Steve Miller, Marilyn Archer. [11] Lance Odegaard, RayMiller. [12] Jeff Elms, Emily Fiesler, Kenny Erb. [13] BaldemarHernandez, Kyle Williams, Grey Frey. [14] Rufus Duncan Jr., RobertArcher. [15] Ronnie Spradlin, Gerv Keith, Mike Harrison, Taylor Strube.[16] Courtney Krittenbrink, Richard O’Dell. [17] Dave Corna, GarnettDouglass.

(More photos on next page)

TEXAS D

EALER

S EXPO

Photos by BPD


Phot

os b

y B

PDTEXAS DEA

LERS EXPO

EVEN MORE LAT SHOW (continued from previous two pages): [1]Jeremy Howard, Chuck Lencheck, Eddie Howard. [2] Aimee Edmond,Kim & Darlene Sebastian. [3] Chris Bailey, Don Barnes. [4] Bill Cullen,Sam Sanregret, Tosh Strader, Tim Kunkle. [5] Jon Hanson, Britt Inman,Ken Sartin. [6] Kimberly Jacob, Ross Dill, Darrin Sparks. [7] Tricia Hall,Craig Lukshin, Barbara Douglas. [8] Alison & Mark Korell. [9] Scott

Stewart, Dave Awtry, Matt Landrum, Marshall Owens. [10] StevenRogers, Dorothy & Ben Calvary, Grant Vaughan. [11] Carter Smith,Cheryl Sparks, Ignacio Castillo, Chris Roberson, Jason Sanders, ChrisMcCollum. [12] Kenny Beauvais, Jerry Hinson, Kara Garner. [13]Nathan Sikes, Keith Haines, Colby Walker, Alex Ulrich. [14] JohnnySanders, Bobby Tosh. [15] Royce Slaven, Robin Gardner.


SOUTHERN Forest Products Association’s recent spring meeting in NewOrleans, La.: [1] Tom Fitzgerald, Mike Pastore, Gary Converse, HuckDeVenzio. [2] Joe Patton, Ryan Hilsinger. [3] Barry Johnson, BruceKicklighter. [4] Joe Kusar, Mark Richardson. [5] Vince Almond. [6] BobbyJennings, Mark Junkins, Donnie Oney. [7] Tom Rice, Buddy Klumb. [8]Dennis Hardman, Kelly McCloskey, Pat Schleisman. [9] Richard Kleiner,Jeff Couvillion, Mayor Mac Watts, Digges Morgan. [10] Cees de Jager,Cathy Kaake. [11] Brian Hayson, Stewart O’Neill, Jeff Baumgartner. [12]Russell Richardson, Brandt Mitchell. [13] Courtney Robinson. [14] LaneMerchant, Gary Unger. [15] Richard Wallace, Rob Taylor. [16] John Rhea,William Almond. [17] David DeVries. [18] Patrick Harrigan, Bill Nocerino.

SFPA

Photos by SFPA


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

WANTED TO BUY

Rates: $1.20 per word (25 word min.). Phone number counts as 1 word,address as 6. Centered copy or headline, $9 per line. Border, $9. Private box,$15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets thetype), $65 if we set type.

Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. Formore info, call (949) 852-1990. Make checks payable to Cutler Publishing.Deadline: 18th of previous month.

To reply to ads with private box numbers, send correspondence to boxnumber shown, c/o BPD. Names of advertisers using a box number cannot bereleased.

CLASSIFIED Marketplace

CUSTOMLUMBER COVERS

PALLET BAGSRoofing Shingles • Cement • Sheetrock

& Plywood Pallet BagsBags 4 x 4 x 4' • 4 x 4 x 8' • 4 x 4 x 12'

Rolls 10 x 300'Custom Printed Covers, Quoted

L.I.INDUSTRIESCALL 800-526-6465

FAX 718-793-4316 • [email protected]

immediatedelivery!

FOR

SALE


DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

International Wood Markets Group – May 10, Global WoodProducts Industry & Market Conference, Westin Bayshore Hotel,Vancouver, B.C.; (604) 801-5996; www.woodmarkets.com.

National Hardware Show – May 10-12, Convention Center, LasVegas, Nv.; (888) 425-9377; www.nationalhardwareshow.com.

North American Retail Hardware Assn. – May 10-12, convention,Bellagio, Las Vegas, Nv.; (317) 290-0338; www.nrha.org.

Paint & Decorating Retailers Association – May 10-12, annualshow, Las Vegas, Nv.; (800) 737-0107; www.pdra.org.

Northeastern Retail Lumber Association – May 11, regional boardmeetings, Rocky Hill, Ct., and Gouverneur, N.Y.; May 13,Bangor, Me.; (518) 286-1010; www.nrla.org.

Northeastern Loggers Association – May 13-14, equipment expo,Bangor, Me; (800) 318-7561; www.northernlogger.com.

Peak Auctioneering – May 14, LBM auction, Indianapolis, In.; (800)245-9690; www.peakauction.com.

American Wood Protection Assn. – May 15-17, annual meeting,Marriott Harbor Beach Resort, Fort Lauderdale, Fl.; (205) 733-4077; www.awpa.com.

Kitchen Cabinet Manufacturers Assn. – May 15-18, convention,Barton Creek Resort, Austin, Tx.; (703) 264-1690; kcma.org.

Forest Products Society –May 16-18, wood & composites confer-ence, Madison, Wi.; (608) 231-1361; www.forestprod.org.

Green Contractors Expo – May 17-18, Convention Center, LasVegas, Nv.; (800) 859-9247; www.greencontractorsexpo.com.

Massachusetts Retail Lumber Dealers Association – May 19,summer outing, Chatham, Ma.; (518) 286-1010; www.nrla.org.

Northeastern Retail Lumber Association – May 19, regional boardmeetings, Hooksett, N.Y.; May 24, Newburgh, N.Y.; May 26,Rensselaer, N.Y.; (518) 286-1010; www.nrla.org.

Peak Auctioneering – May 21, LBM auction, Metrolina TradeshowExpo, Charlotte, N.C.; (800) 245-9690; www.peakauction.com.

Do It Best Corp. – May 21-23, spring market, Indiana ConventionCenter, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

American Architectural Manufacturers Assn. – June 5-8, summerconference, Minneapolis, Mn.; (847) 303-5664; aamanet.org.

National Hardwood Lumber Association – June 5-9, hardwoodsseminar, Memphis, Tn., and Pickwick, Tn.; (800) 933-0318;www.nhla.org.

Northwestern Lumber Association – June 7, golf outings, OtterCreek Golf Course, Ankeny, Ia.; June 9, York Country Club,York, Ne.; (763) 544-6822; www.nlassn.org.

Mid-America Lumbermens Assn. – June 10, Kansas SunflowerShootout, Hutchison, Ks.; (800) 747-6529; www.themla.org.

Oklahoma Lumbermen’s Assn. – June 10-12, convention, HardRock Hotel & Casino, Tulsa, Ok.; (800) 444-1771; oklumber.org.

National Retail Federation – June 13-15, loss prevention confer-ence & expo, Dallas, Tx.; (800) 673-4692; www.nrf.com.

Virginia Tech – June 14, forest products marketing workshop,Charlottesville, Va.; (540) 231-0978; www.woodinnovation.org.

National Lawn & Garden Show –June 14-16, , Rosemont, Il.; (888)316-0226; www.nlgshow.com.

United Hardware Distributing Co. – June 16-19, market, Minnnea-polis, Mn.; (763) 557-2714; www.unitedhardware.com.

Forest Products Society – June 19-21, international convention,Doubletree, Portland, Or.; (608) 231-1361; www.forestprod.org.

House-Hasson Hardware Co. – June 23-25, market, Cobb GalleriaCenter, Atlanta, Ga.; (800) 333-0520; www.househasson.com.


IDEA FileHouse Calls at Midnight

ADVERTISERS IndexFor more information on advertisers, call them

directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........55AERT [www.aertinc.com] ....................................................Cover IVAinsworth [www.ainsworthengineered.com] .........................26-27Anthony Forest Products [www.anthonyforest.com] .................25Biewer Lumber [www.biewerselect.com].......................................3Boise Cascade [www.bcewp.com]................................................13Building Materials Alliance [www.siberwood.com].....................24Cabot [www.cabotfactoryfinish.com]..................................Cover IICapital [www.capital-lumber.com]................................................51Cedar Creek Wholesale [www.cedarcreek.com] ........................59Chicago Suburban Lumber Sales [chicagosurburban.com]......47Crumpler Plastic Pipe [www.cpp-pipe.com] ................................62Distribution Management Systems [www.dmsi.com] .................50Elder Wood Preserving [www.elderwoodpreserving.com] ........28Enduris [www.enduris.com] ..........................................................35Fasco America [www.fascoamerica.com]....................................22Fiberon LLC [www.fiberondecking.com] .....................................21Forest2Market [www.forest2market.com] ....................................45Great Southern Wood Preserving [www.yellawood.com] ............7GRK Fasteners [www.grkfasteners.com].....................................54Guardian Building Products [www.guardianbp.com] .................19Hood Industries [www.hoodindustries.com] ...............................41Hoover Treated Wood Products [www.frtw.com]........................61Kebony [www.kebony.com]...........................................................23Kleer Lumber [www.kleerlumber.com].........................................31Krauter Solutions [www.krauter-storage.com]............................38LTG Inc. [lbrtimber.com]................................................................47LWO Corp. [www.lwocorp.com]....................................................49Mary’s River Lumber [www.marysriverlumber.com] ..................43Master Mark Plastics [www.rhinodeck.com]................................55McFarland Cascade [www.mcfarlandcascade.com] ...................17Neiman Enterprises [www.neimanenterprises.com]...................44Nordic Engineered Wood Products [www.nordicewp.com].......33North American Wholesale Lumber Association [nawla.org] ....52Northeastern Lumber Manufacturers Assn. [www.nelma.org]...48Pacific MDF Products [www.pactrim.com] .................................20Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....39PPG Industries [www.ppg.com] ....................................................37Redwood Empire [www.redwoodemp.com] ........................Cover IRISI [www.risiinfo.com/crows] ......................................................46Selkirk [www.selkirkcedar.com]....................................................49Simpson Strong-Tie [www.strongtie.com].........................Cover IIISunbelt [www.sunbeltracks.com] .................................................51Sure Drive USA [www.suredrive.com]............................................4TAMKO Building Products [www.evergrain.com] .........................5Trinity Forest Industries [trinityforest.com].................................48Universal Fastener Outsourcing [www.911-nails.com] ................4Wahoo Decks [www.wahoodecks.com] .......................................53Western Forest Products [www.westernforest.com] ..................41Western Red Cedar Lumber Association [www.wrcla.org] ........49

Offering free residential delivery—24 hours aday, seven days a week—is earning rave reviews for ahardware chain in San Francisco, Ca.

“There are a myriad of reasons why shopping can bea hassle. We get it, and want to eliminate them,” saysowner Rick Karp. “Our Rewards customers just have totell us what they need.”

Before the new service started in late March, storeemployees handled the weekend-only deliveries. Butwhen more customers said they would prefer receivingorders during the week, Cole signed up with a companythat specializes in 24/7 deliveries.

Karp says that in urban areas off-hour deliveries arenot unusual. “More people work from home or haveother than 8-to-5 work schedules,” he says. And eventhough the service is available 24/7, he says most deliv-eries occur after 5 a.m. and before midnight.

To get the ball rolling, customers call one of Cole’sfour stores during regular business hours to place anorder, $25 minimum. For anyone who’s not already amember of the rewards program, signup is free.

“We wanted to keep the minimum at $25, just likeAmazon, to build the awareness that retail stores cancompete with online vendors,” he says. Larger ordershelp to offset the cost of delivering the smaller ones.

“Services like this help us differentiate ourselvesfrom other businesses,” says Karp.

Get decked out this season.

© 2011 Simpson Strong-Tie Company Inc. DECK11-D

Simpson Strong-Tie is your resource for deck connectors and fasteners as well as education on deck framing and code requirements. Our DTT deck tension tie meets the code for connecting guardrail posts to the deck framing. Our new LSCZ stair-stringer connector offers a versatile, concealed connection between the stair stringer and the carrying header or rim joist while replacing costly framing. And our new time-saving SD structural-connector screws are specially designed to perform with our most popular connectors and provide an alternative to nails. For all your deck hardware solutions, make sure you stock Simpson Strong-Tie.

For more information and to see our DeckTools® deck design software in action, visit our Deck Center at www.strongtie.com/deckcenter or call (800) 999-5099.

SD Structural-Connector Screws

DTT Deck Tension Tie

LSCZ Stair-Stringer Connector

DECK11-D_8_1-4x10_7-8.indd 1 4/14/11 11:53 AM

BPDBuilding Products Digest

4500 Campus Dr. No. 480Newport Beach, Ca. 92660-1872 Change Service Requested

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Stock MoistureShield® products and provide your customers with a decking product that is guaranteed to last. Some folks wrap their decking boards in a thin coat as “protection” from the elements. Not MoistureShield. Our boards are protected to the core.

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Learn about becoming a MoistureShield Preferred Dealer at moistureshield.com.

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Building Products Digest - May 2011