Building Products Digest - May 2012

HOW TO SELL MORE DECKING � COLUMN WRAPS � NAWLA SPECIAL SECTION

MAY 2012

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

BPD BuildingProducts Digest

44 � Building Products Digest � May 2012 Building-Products.com

May 2012 �� Volume 31 �� Number 3

Online

BPD BuildingProducts Digest

Special Features9 PRODUCT SPOTLIGHTTIPS TO SELL MORE DECK STAINS

10 FEATURE STORYWHAT TO STOCK IN DECKING & RAILING

12 MARGIN BUILDERSBETTER UTILIZE YOUR DECK SOFTWARE

14 INDUSTRY TRENDSHOW GREEN IS HARDWOOD DECKING?

16 PRODUCT SPOTLIGHTPOST WRAPS CREATE NEW COLUMNS

33 SPECIAL FOCUS: NAWLA• LUMBER INDUSTRY RECRUITMENT• SELLING TO NEWLY ACQUIRED FIRMS• CONFLICTS WITH SALES ACCOUNTS• MANAGING MULTI-GENERATIONAL TEAMS• FUNDING WORKING CAPITAL

56 PHOTO RECAP: TEXAS DEALER EXPO

In Every Issue6 TOTALLY RANDOM

18 COMPETITIVE INTELLIGENCE

20 OLSEN ON SALES

22 GREEN RETAILING

24 FAMILY BUSINESS

26 OVER THE COUNTER

30 MOVERS & SHAKERS

54 NEW PRODUCTS

59 ASSOCIATION UPDATE

59 IN MEMORIAM

60 CLASSIFIED MARKETPLACE

61 DATE BOOK

61 TALK BACK

62 IDEA FILE

62 ADVERTISERS INDEX

BREAKING INDUSTRY NEWS &INDUSTRY PHOTO DOWNLOADSBUILDING-PRODUCTS.COM(FOLLOW LINK FOR PHOTOS)

BPD: DIGITAL VERSIONTHE LATEST ISSUE CAN NOW

BE VIEWED AT

BUILDING-PRODUCTS.COM

BC CONNECT™ is the new integrated 1-stop online portal with everything you need to manage your EWP business in one place and instant access to your entire design and business management platform. It’s packed with features like fast project starts through universal data entry, plans, specs and other details uploaded from remote locations, and quick, accurate formula-based estimates. Scan the QR code or click www.bc.com/bcc09 to view a short

video, or call your Boise Cascade Area Manager, or Boise Cascade EWP Software at 800-405-5969.

to manage

business in

and instant

© 2012 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, the TREE-IN-A-CIRCLE symbol, BC CONNECT and “Great products are only the beginning” are trademarks of Boise Cascade, L.L.C. or its affi liates.

Great products are only the beginning.

Are you ready for the next wave of innovation in composite decking? MoistureShield® is making a splash as the only decking product that can be installed on or in the ground or even underwater. Give your customers a more durable deck solution that is protected to the core and guaranteed to last. Plunge into our proven performance, innovation and beautiful colors at moistureshield.com.

866.729.2378 | moistureshield.com

WouldifCould_Beach_BuildingProdDigest_Dealer.indd 1 4/4/2012 3:34:52 PM


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BPDBuilding Products Digest

TOTALLY RandomBy Alan Oakes

Patience is a virtue...

THAT WAS WHAT MY PARENTS taught me from a very early age. But I feel—andperhaps chalk it up to the natural aging process—life at times seems to be mov-

ing too fast. Consequently, patience and tolerance levels are declining just as quick-ly. I cannot believe how much screaming and shouting goes on around me—espe-cially on television and on line. In a world of Twitter (and it is time that went away,IMHO) this got-to-know-now, got-to-do-now world we live in makes me worryabout the future.

Times have changed, and not all for the good. In the good old days, there werethe weekends when that project around the home could take three months. Now ithas to be finished the same weekend! At work, the project that would have takenweeks now has to be done by tomorrow. Dinner that used to be slaved over forhours now is out of a bag, oven to table, in 20 minutes. Kids eat dinner, play videogames, and do their homework all at the same time, while rushing to the next out-of-school activity. Everything has to be done now and instantaneously!

Much of the troubles our economy has gone through these past years can beblamed on the need for instant gratification, that regardless of whether it could beafforded or not, there was the need to have it now, rather than save for it.

We are living in a time that gets faster by the day, hour and minute. It’s a worldwhere a newsperson gets fired if another network gets on air with a breaking story afew minutes earlier. Sometimes even seconds are too long. I must admit my wife isalways saying, “Hold on! I’ll get to it in a few seconds when I finish the last thingyou barked your orders for.” Yes, it seems I have succumbed, too.

In the process, we have lost patience and tolerance. Patience is the ability to tol-erate delay, and it seems that most of us are guilty of a lack of it. Our shortage ofpatience suggests our time and needs are more important than anyone else’s. I’d liketo think that I am better at it than in the past when someone jumped the line at thesupermarket or cinema line. I let it go now, but maybe because people seem a lotmeaner than they used to and you never know what they will pull from their pocket.When I get cut off on the highway, I just take a breath (or two, or three).

Maybe it is maturity, but today I am better at gauging how important somethingreally is. So many times, I see people lose their tempers when, once out of thatmoment, minimal analysis would show that it really did not matter. Things thatwould have gotten my cheeks boiling not so long ago now do not. I find my stom-ach is no longer in the knots it used to be in.

Instead, look around you and marvel at our universe. Understand what is reallyimportant and learn to accept other’s failings. Once you have serious illnessesaround you, for instance, you renumber your priorities.

Lastly, looking at my own field, I am astounded at the decline of real journal-ism. It should alarm anyone of any intelligence. It’s all brought about by the need-to-know crowd. On television, news has been dumbed down to the lowest commondenominator. Real thought and insight have been thrownout of the window for the sake of expediency. Editorialstandards evaporate when “news” has to be published inseconds. And, yes, the biggest danger is that real editori-al costs money and cannot be given away free. Becauseof that, our journalism has evolved into covering whatsome celebrity was wearing, instead of creating intelli-gent debates on the issues that face us. Serious jour-nalism is in real decline, and we all shouldunreservedly lament this loss. How can youhave an opinion when you have had no seri-ous news to base your opinion on? Are wegoing to base our worldly opinions on theHuffington Post?

Alan Oakes, [email protected]

Building-Products.com May 2012 � Building Products Digest � 99

SELLING HIGH-END stains can be challenging with currenteconomic conditions, but recession or no recession,

there is something to be said for the value of a qualitywood coating.You need less product, there’s less labour involved, and

the end result looks and performs better. The key is educat-ing staff so they have the tools and knowledge to help cus-tomers make the right choice for their homes. To help withthat, wood stain manufacturer Sansin questioned three ofits most successful dealers in North America. Their strate-gies can boost your sales, which will not only help yourcustomers, but also help your bottom line.

1. Use the stain yourself. This gives you first-handexperience when talking to customers and telling them

PRODUCT SpotlightDeck Stains

8 tips to sell more stains

SAMPLE-PACKED merchandiser from Sansin makes it easy for cus-tomers to select premium wood stains.

why they should use a premier brand.

2. Know the product inside & out. When customersare going to spend big money on stain or finish, they needa dealer who knows more about the product than just theliterature. That’s why Doug Janzen of Janzen’s Paint &Decorating, Brandon, Mb., makes sure his sales reps knowwood stains like the backs of their hands.

3. Set out samples. Every stain and finish productclaims to last a certain amount of time. But when you seehow well they work in action, it really makes an impres-sion.

4. Let them try it. Hands-on experience can oftenmake or break a sale. So why not let your customers try theproduct in the store? That’s what Janzen does. He has sam-ples of the stains that he lets customers brush onto woodright in the store, so they can get a sense of how it worksand how it looks. “This gives people a first-hand sense ofthe rich, warm tone of the finish,” he says.

5. Go to your best contractors. Many customerswon’t be working first-hand with the stains themselves, buttheir contractors will. That’s why Bjorn Hanson, Burnell’sDecor, Rice Lake, Wi., let his best contractors try it outfirst. “They were so impressed with the product that I nowmake most of my sales to my regular contractors,” he says.

6. Focus on custom colors. Some higher-end stainsand finishes allow you to custom-tint the product. “Notonly can we do the 80 colors in Sansin’s catalog, but thecustom-tinting process allows us to make any color ourcustomers want,” says James Housser, owner of Housser’sPaint & Wallpaper, Orillia, Ont. “That’s a major sellingpoint.”

7. Go green. Another key selling point, says Housser,can be a water-borne formula that makes the staiin a moreenvironmentally friendly choice. Or, perhaps it dries faster,has less odor, or is easier to apply.

8. Offer tips & tricks. When you have strong knowl-edge of the product, you can provide pointers about usingit that will make customers more willing to try it.According to Hanson, “I try to offer my customers as muchinformation as possible so that they’ll have success withthe product.”


FEATURE StoryBy David Elenbaum

THE INCREASINGLY DIVERSE productofferings in decking and railing

are a good thing for the typical LBMdealer—that is, unless he wants tostock something. “We don’t knowwhat color to stock and as soon as wemake a choice, it will be the wrongcolor” is a very common statement inthe industry. It used to be that you had treated,

some gray composite, and if you weresavvy, a vinyl rail that came in anycolor a prospect wanted as long as itwas white. The only salesmanshipthat was needed was to point out themaintenance differences and you weredone. Today, the decking selection area

What to stock to sellmore decking and railing

in a lumberyard is typically a shelfwith so many choices that a prospectmay not know where to start. Thesales staff at the store very likely doesnot have enough time to learn aboutall of the brands and lines that theyhave access to. Finally, what happensif the prospect decides on a color thathas been discontinued or the distribu-tor stopped carrying?The crux of the matter is that if

you don’t stock anything, you maynot be a player. The contractors relyon dealers to stock products and nor-mally will try to sell what they canget, today. Homeowners may wait forspecial delivery, but the option of anin-stock product will always weigh

heavily on their buying decision. It’sno one’s fault, we are just instant grat-ification people. We like service now,our way, right away, and there is noneed to plan ahead in today’s world. Principia Partners’s report from

2011 shows that the pro contractorbuying from the pro dealer is the topchannel for decking and railing by avast margin. Freedonia reports thatthe entire category is due to increaseover the next few years by a signifi-cant measure. From these sources ofinformation, dealers may want torevive their focus on the category, buthow? Here are some ideas on how deal-

ers can be involved in this saturatedmarket and, perhaps, make a fewbucks in the process:• In addition to treated, stock an

alternative decking in three lengthsand a fascia board. Stock the fastenersand clips, and consider stocking acomplementary railing. It’s good tohave everything in your yard that isneeded for the typical 16x20 deck. Choosing the color is crucial, but

most manufacturing reps can help youdecide which one is best for yourlocation and market. If the brand you go with has a hid-

den fastening system, go with that.Get the tools to install the productsand sell them or rent them out. Stockthe brackets and bolts needed fordecks to meet code. Once you decide on the color and

brand, run a special on it and makesure it is priced more competitivelythan your special orders. It’s okay tohave all of the other samples and havethem there if someone asks for them,but you must clearly show yourchoice as the frontrunner and have areally good sales pitch as to why youmade that choice. Keep the materialsDECKING SALESMAN at Stock Building Supply, Johnston County, N.C., shows off his wares.

Photo by

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onsite in your inventory, and makesure your yard guys ship it perfect andclean with an emphasis on clean.• Leverage your suppliers and sales

staff. Manufacturers reps and distribu-tion reps are always happy to makecalls to contractors to help you growyour business. Choose a member or two of your

sales staff who will be responsible fordecking and railing sales. By notdiluting it, you will create a specialistwho closes more deals then if youspread the responsibility out amongstthe entire store. Make that person thedoctor, the person everyone trustsbecause he knows so much about itthat they will let him do surgery. Homeowners and contractors trust

validated knowledge in a deckingsalesperson—a person who affirmsfactual information found online or inpublications read by the public. Thesalesperson should possess the abilityto capture the prospect, determine theobjections and needs the prospect val-ues, and apply those to the productyou want to sell. Salesmanship requires more work

but is also more profitable. • Market your store as a resource.

People go on the Internet to researchwhat they want to buy, but in today’sworld they look for validation from

the salesperson they deal with,whether it is on the phone or in per-son. Decking rarely sells in an elec-tronic transaction. Market onlineaggressively with a website, searchengines, and social media. Link toyour supplier websites and ask forhelp from them with content to put onyours. Advertise that you stock decking

materials and that you can provideproduct knowledge. Participate in theindustry associations, such asNADRA, and host events at yourstore. Learn the codes and interact with

the codes officials that inspect yourcustomer’s projects. By stocking products and proving

to your market that you are committedto the decking industry and are astocking resource for the materials,you will begin to gain marketshareand see growth in decking and railing.

– David Elenbaum is owner of a deckconstruction firm in South Carolina andhas worked in the contracting, manufac-turing and distribution channels duringhis 12 years in the deck and rail industry.Reach him at [email protected].

Composite, Plastic LumberLeads Decking ReboundU.S. demand for wood-plastic

composite and plastic lumber isprojected to rise 13.2% per yearfrom $2.9 billion to $5.4 billion by2015, according to a newFreedonia Group study.Percentage growth will be dri-

ven by a rebound in constructionexpenditures from a depressed2010 base.Composite lumber demand will

grow 16% annually to $2.5 billionin 2015, while plastic will increasenearly 11% annually to $2.8 bil-lion.Because composites incorporate

recycled materials, they are oftenviewed as environmentally friend-lier. Gains for plastics will bespurred by heightened consumerinterest in its low maintenanceproperties, and manufacturers’efforts to create plastic lumbervarieties with more realistic wood-grain textures and surfaces.


OVER THE YEARS, LBM dealershave invested in software to help

their pro desks design and sell decks.All too many of these dealers, howev-er, have found their deck design soft-ware is underutilized by associates. That said, you might be surprised

to learn that a number of lumberyardsand pro dealers are finding new waysto grow their business organically bypartnering with their existing contrac-tor customers and capturing moreshare of wallet from their d-i-y cus-tomer base. Three lumberyards pro-vide examples of how using deck soft-ware is generating growth.

Parr LumberHeadquartered in Hillsboro, Or.,

Parr Lumber is a family-owned busi-ness that opened its first lumberyard in

1930. Today, there are 19 stores inOregon and Washington, primarily inthe Bend-Tacoma-Seattle area. For Parr, deck building is seasonal.

“Currently deck building is about 50%of our business in the spring,” saidTraci Roe, counter sales at ParrLumber. “It’s about 50/50 contractorsvs. homeowners.”The chain recently invested in deck

software, but it’s currently underuti-lized. “I’m the only one trained on it,but ideally, I would like to have a cen-ter where anyone can take their cus-tomer and build their deck,” said Roe.“The software is easy to play with andpretty forgiving, so having everyonetrained shouldn’t be too difficult. I’mnot the most computer savvy, so it’snice that I can go back and changeanything.”

Get more out of yourdeck design software

MARGIN BuildersBy Sean Seymour, Simpson Strong-Tie

Parr recently partnered with two ofits loyal contractors on two deck pro-jects. “They knew we had the soft-ware, and being able to see a pictureof the finished product was huge. Italso was a big selling point,” Roe said.Although Parr would like to expand

the use of its software, they havenoticed that it has increased the effi-ciency of their deck design processand their ability to upsell. “With theclick of a button, I can change materi-als and give customers more options,”said Roe. “I had three d-i-y customersand all three chose us for their deck.They knew what they wanted, andhaving that visual piece added a lot.The ability to show materials otherthan wood made it easier for us to sellthem on it. Oregonians tend to wantreal wood and organic, natural materi-als, but when we tell them about theupkeep and how rain affects mold andovergrowth, they’re more willing tolook at other options. We moved tocomposite, and now we’re movingmore toward PVC.”Parr believes that once they get a

deck station set up in their store inHillsboro, they’ll have everyonetrained on the software. Roe added, “Iwant to give it to our outside salespeo-ple for use with their customers too.With full integration into our business,it’s a phenomenal tool for us. We cancrank out a deck design in 15 minutes.I love it.”

PMC Building MaterialsAbout 15 miles north of Atlanta,

Ga., PMC Building Materials openedits doors in September 2008. As a full-service lumberyard focused mainly onremodelers, they also serve deckbuilders, contractors and homeowners/d-i-yers. PMC often uses focus groups

OFFERING DECK design services, such as with Simpson Strong-Tie’s DeckTools software, helpsboost dealers’ decking sales.


The software also reduces designtime. “It used to take us a day todesign a deck. Now it takes a fractionof the time, so we can have it donewhile the customer is in the store,”added Walter.For contractors, J&W can provide

plans and estimates for their cus-tomers. “Even when they come in witha difficult design drawn on a napkin,we’ll review it on the software to fig-ure out if it can be done. As we’vebecome more proficient with the soft-ware, we’re using its railing designand customized features a lot more,and now are beginning to design patiocovers,” said Walter.The software also has made J&W’s

deck design process more efficient.“It’s more visual and we can providequicker quotes to our contractor cus-tomers, who can then provide quickerturnarounds to their customers,” hesaid. It has made an impact with home-

owners as well, influencing upgrades.According to Walter, “D-i-yers areabsolutely amazed. They see the fin-ished product within a few minutes,and we can change options on the fly.Often, they have three to four ideas inmind, and we can switch those aroundand show them in color. Even though

to gain valuable feedback from theirremodeler customers. With their input,PMC decided to build a deck centertwo years ago. Today, it’s the biggestdeck display in the Southeast. About10% to 15% of their business is nowdeck building, and 90% of that comesfrom contractors and remodelers.PMC’s goal is to become a one-

stop shop for all of their customers’decking needs. “We needed softwarethat could handle multiple (product)libraries as well as build a libraryquickly, because we have more than17 deck brands and 21 railing sys-tems,” explained Thomas Matula,IT/web/marketing manager for PMC.“The software had to be easy to under-stand and work with. We’re still gear-ing up and have one outside sales guyworking specifically on the software,and one front desk person designatedto teach our front counter staff.” PMC’s plan is to get the design

stage out of the hands of their cus-tomers in order to free up their time sothey can focus more on leads and gen-erating more income for their busi-ness. “We’re just starting with thesoftware, but the belief is that by uti-lizing it in the real-world stage, we’llultimately be able to improve it as wegrow across multiple markets,” Matulasaid.To date, the software has helped

provide more professional-lookingquotes and more opportunities toupsell projects. “As we continue tobrand ourselves as the one-stop shopfor all decking needs, the software istruly the icing on the cake. We havethe knowledge to help a builder makea sale, which means they keep comingback,” said Matula.

J&W LumberWith over 50 years in the business,

J&W Lumber has 45 employeesacross six stores—five in San DiegoCounty and one in Riverside County,Ca. Their main focus is decking andpatio covers. Decking is 40% of J&W’s total

business, with 70% coming from con-tractors and 30% from d-i-yers.Providing deck design has been a partof J&W’s business for much of its his-tory. “We used to spend hours with apencil and a ruler drawing a design,”explained J&W’s Scott Walter. “Butwe didn’t give customers a visual ofwhat their deck could look like.Today, we use software that providescustomers with a 3D digital presenta-tion of their deck.” DESIGNS for decking projects also cover railings (upper) and patio covers (lower).

they think something might be moreexpensive, once they see it, they likeit. And we can show them that it mightnot affect price as much as theythought so they tend to buy upgrades.”J&W currently has 20 employees

trained on the software. Walter added,“We want to continue to improve ourskills and use the advanced features,so we can do things like tweak designseven more, design better railings, andprice out patio covers. It really helpsyou expand beyond the deck.”While deck design software is not

new, the technology continues toevolve and improve. The latest soft-ware on the market can produce 3Dphoto-quality deck designs withsophisticated railings and customiz-able product libraries as well as esti-mates, take-offs and plans. As show-cased by these dealers, deck softwareis helping expand business with con-tractors and d-i-yers and contributingto the bottom line—not only with howfast it can generate a deck design, butwith the visual presentation in show-ing upgrades that ultimately lead toincreased sales.

– Sean Seymour is national sales man-ager for DeckTools with Simpson Strong-Tie, Pleasanton, Ca. Reach him at [email protected].

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MARGIN BuildersBy Bob Hafner, Tiger Deck

AS IN MOST PARTS of the buildingindustry, the demand for green

decking continues to surge. Savvymarketers are taking advantage, pro-moting the green qualities of theirmanmade or natural wood materials.But the greenest option might be theone consumers know the least aboutand comprises less than 5% of thedecking market. So just how green are tropical hard-

woods?Most people think of green prod-

ucts as having minimal long-term

How green is tropicalhardwood decking?

INDEPENDENT STUDIES show hardwood decking stacks up well environmentally against soft-woods and composites. Photo by Tiger Deck

natural resistance to insects, rot, anddecay (such as redwood and cedar)and treated softwoods have a signifi-cantly lower environmental impactthan composite or plastic deckingproducts*. Given this information, wecan infer a number of conclusionsabout hardwoods by focusing on fourenvironmental factors: responsiblesourcing, durability and lifespan, envi-ronmental impact, and end-of-life dis-posal.Responsible SourcingHardwood decking is made of trop-

ical tree species, harvested from tropi-cal forest areas around the world.Contrary to popular belief, however,logging is not the root cause of tropi-cal deforestation. The conversion oftropical forestland to ranches andfarmland is far more destructive, atrend that’s exacerbated by energycompanies seeking to produce moreagro-fuel crops. In fact, most countriesin the tropics have initiated strict log-ging regulations that are growing inscope and enforcement. When properly regulated, sustain-

able logging can actually slow orreverse deforestation by adding valueto forestland and providing a viablealternative to farming and ranching.Plus, tropical countries are eligible forcarbon sequestration projects, provid-ing incentives to plant new forests,

impact on the environment, from rawmaterial sourcing to manufacturing,selling, and end-of-life disposal. Thechallenge for hardwood advocates isthat most cradle-to-grave life cyclestudies focus on other decking materi-als, specifically natural softwoods,treated softwoods, and wood-plasticcomposites. We can still learn fromthese studies, however, as hardwoodsshare many of the same life cycletraits as softwoods. Let’s start with the studies’ basic

findings: Solid wood products with

* Studies include Life Cycle Assessmentof ACQ Lumber vs. WPC b7 Christopher A.Bolin & Stephen Smith, Journal of CleanerProduction, June 30, 2010, and WPC vs.Wood Decking by Dr. Jim Bowyer, DovetailPartnerships, July 28, 2010.


replace old ones, or grow plantationforests consisting of fast-growingdecking-appropriate species.Replenishing depleted forests or plant-ing new forests has the potential toprovide income to developing coun-tries, offset companies’ fossil fuelemissions, boost the supply of eco-friendly wood products, and increasetropical forest area (this has alreadystarted in some countries). Durability & LifespanSolid wood has a long track record

of performance. Softwood decks (notold growth) may last 10 to 15 years onaverage, depending on care. By comparison, tropical hardwood

decking can last two to three times aslong as softwood decking. For exam-ple, the Coney Island boardwalk wasrenovated with ipé (the first provenhardwood decking species, along withTigerwood and cumaru) in the 1960sand sections of the Atlantic Cityboardwalk in New Jersey werereplaced with ipé in 1989. In both ofthese heavy commercial applications,the hardwood decking is still perform-ing well.All solid wood decking products

require UV protection for color preser-vation, but as you move from treated

to cedar/redwood to hardwoods, therequired maintenance declines.Because hardwoods are much denser,they're also far more resistant toscratching, denting, and other surfacedegradation. Environmental ImpactWood-plastic composites have a

significantly higher impact than solidwoods in every environmental mea-sure, including embodied energy,global warming acidification, aquaticeutrophication, ozone depletion, smogformation, and human respiratoryeffects. Although the referenced stud-ies focus only on North Americansoftwoods, the practices used in tropi-cal forestry are extremely similar up tothe point of shipping from source tomarket. Because decks made of tropical

hardwoods can last up to three timeslonger than softwood decks (and equalto or more than composites), it’s rea-sonable to assume this longer lifespanoffsets additional embodied energyused during transportation in overallenvironmental impact. Even if thewood composites last three times aslong as softwood—no one reallyknows their life expectancy—the stud-ies still believe that solid wood prod-

ucts will have a smaller environmentalimpact. AfterlifeWhat happens when the product

wears out? Natural solid wood prod-ucts are recyclable and biodegradable,eventually reverting to soil over time.Hardwoods generally take longer tobiodegrade than softwoods, but theslow degradation is offset by hard-woods’ longevity. Wood-plastic composites are not

recyclable and end up in a landfill.Some manufacturers claim to makeplastic decking from 100% recycledmaterials, but the plastic can't be recy-cled indefinitely; eventually it ends upin a landfill as well and will not biode-grade in any reasonable time frame.Tropical hardwood decking offers a

number of environmental advantagesover other materials. It lasts longer,requires less energy from cradle tograve, is available through selectiveand sustainable logging practices, andis biodegradable. Those looking for agreen decking option should considertropical hardwoods as a viable option.

– Bob Hafner is president of TigerDeck, Wilsonville, Or. Reach him at (503)780-2876 or [email protected].


UPDATING a structural wood post is easy withcolumn wraps, such as this one from Fypon.

UPDATING EXTERIOR wood columnswith cellular PVC post wraps and

trimboard is a cost- and time-savingalternative to repainting or totalreplacement—which makes theseproducts attractive to cost-conscioushomeowners. Over time, wood posts and columns

on porches and patios can weather andrequire repainting—while still beingstructurally sound. Or, perhaps ahomeowner just wants to add morecurb appeal. On new projects, PVCwraps can be added at the end—reduc-ing the chance of accidental damage. KleerSnap post wraps from Kleer

Lumber, Westfield, Ma., look andwork like natural wood but are virtual-

ly impervious to moisture and insects.They provide an easy, cost-effectiveway to improve the appearance anddurability of exterior posts. Althoughthe product doesn’t require painting, itcan be painted to match existing exte-rior details and is guaranteed to neverrot, warp or delaminate.“Exterior posts represent one of the

more visual elements of an outdoorstructure,” says Jack Delaney, seniorvice president of sales and marketingat Kleer Lumber. “KleerSnap postwrap is a simple and cost-effectiveway to enhance the aesthetic appeal ofthe posts while lowering the amountof maintenance required to preservetheir beauty.”

Post wraps make newcolumns in a snap

PRODUCT SpotlightPVC Post Wraps

The wraps are available in a fullrange of sizes to cover posts measur-ing 4”x4” to 8”x8”, up to 10’ tall. Kitswith complementary base mouldingand post caps in both 5” and 7” sizesare also available. Kleer also offers a wide variety of

product solutions to help contractorscreate custom columns. Trimboardwith TruEdge fully sealed edges and awide variety of extruded mouldingprofiles can be used to create the exactlook their customers desire. The com-pany also offers an assortment ofcolor-matched adhesives, cement,sealant and fasteners for a completesolution and the best results.Two-piece column wraps from

CELLULAR PVC trimboards manufactured by AZEK Building Products were used to create customcolumns for a covered patio.


KLEERSNAP post wraps by Kleer Lumbermake short work of column upgrades on afront porch/entry.

Fypon, Maumee, Oh., are available in11 styles, to quickly transform anordinary structural post into some-thing distinctive. Choices includetapered and non-tapered columnstyles, plus a variety of cap and basestyles. An unassembled column wrap in a

plainer, box style is also available, inwidths from 6” to 12” and a variety ofstandard heights that can be trimmedon the jobsite. Each kit includes allneeded components, including adhe-sive, screws, and cleats needed forinstallation.PVC products manufactured by

AZEK Building Products, Scranton,Pa., allow builders to get creativewhen wrapping columns for porches,pergolas, and outdoor rooms.

“Easy workability allows the con-tractor to be creative, while providinglow-maintenance,” says MichaelGori, director of product managementat AZEK. “For wider columns onporches and entryways, contractorstypically opt for AZEK Trim either inboard profiles or cut from AZEKSheet.” Steve Gray, who owns and opera-

tions a renovation firm in Indiana-polis, In., uses AZEK trim for beamsand large columns. “We intertwinehalf of the end grain so it’s inter-locked and won’t come apart,” hesays. “We find a continuous need forthis type of low-maintenance trim,which needs no upkeep.”

SO, THIS BUILDER walks into a bar,meets a man… and the punch line

is, they decide to open a home cen-ter—a sustainably focused one, noless. But this is no joke—especiallythe fact that they pulled it off in thisdifficult economy.TreeHouse opened late last year in

Austin, Tx. Now, usually I wait wellbeyond a few months before portray-ing a success story. But success it cer-tainly is—business has multipliedfive-fold in that short span. And, moreto the point, the project had been onthe drawing board ever since thatmeeting back in 2006.That’s when Jason Ballard, the

builder from Boulder, Co., who’s nowv.p. of sustainability (a biologist bytraining and environmentalist by pas-sion) met up with an old collegechum—groomsmen for each other andboth originally from Texas—to collab-

Going green cultivates rosy future

COMPETITIVE IntelligenceBy Carla Waldemar

OUT FRONT visitors to Treehouse are greeted by a massive rainwater collection system.

orate in launching a green operation.They did their market research, thencame up with a business plan and seedfunding. While the two were visitingD.C. on business, Jason recalledanother Texas buddy now workingthere and connected once again. Whenasked to sign on, his answer was“Absolutely!” He left his Wall Streetjob to become v.p. of marketing.They next approached a contact

with a legal background, working for ahigh-priced San Francisco firm, whowas looking for more satisfyingemployment. “He came with a fantas-tic reputation and dove in head-first,”says Jason. “That’s the way we grew,through friendships—people excitedabout the possibility, not just a busi-ness motive.”Why Austin? More market research

revealed that it was the state’s birth-place of green building. Plus, the boys

from Boulder, D.C., and SanFrancisco were more than eager toreturn to good ol’ Texas turf. So, saysJason, “The decision made itself.”Okay, how about the site within the

city? As you can guess by now, that,too, was not left to chance. “It wasnot, ‘If you build it…,’” Jason avers.“‘Location, location, location’ is notan adage for no reason. We looked fora part of the community that offered ademographic of thoughtful, educatedpeople. We also looked for a majorthoroughfare with high traffic. And aplace with good neighbors, like Cen-tral Market, where we ended up takingover a former Borders bookstore siteand remodeling it to LEED standards.Then, on October 22, we opened.”How did you spread the word?

“Man! We’re still working on that!But mostly, through guerilla market-ing: as guest speakers, at conferences,at the farmers’ market. We’ve usedprint mailers, groupons [Webcoupons], radio, even billboards” toreach a customer base that catersequally to pros and weekend warriors.“We’re geared to serve both; The

layout is d-i-y-friendly. But I had beena builder, so I also knew their needs asa pro. We offer delivery and installa-tion, calling on our list of approvedsubs, plus a dedicated professionalteam” that includes everyone fromcertified interior designers to a solarengineer and a staff member with amaster’s degree in architecture, amongTreeHouse’s close to 30 employees. Jason adds, “We hired folks with a

high level of education, not necessari-ly in this field, then trained them ingreen building—the salesmanship, theproducts—with one of the most thor-ough front-end programs I know of.”And it’s paid off: The feedback

online, via Yelp and Facebook, hasbeen positive, with raves like


Carla [email protected]

three or four years. Spend 10% more on something thatlasts 20 to 30 years,” he’ll counsel.Plus, “We do a good job of qualifying our customers,”

he notes. (That’s just a fancy marketing term for findingtheir sweet spot.) A pregnant woman is concerned abouther family’s health. An environmental fanatic is alreadyconvinced it’s the way to go. And both of them are willingto pay a premium for their choices. On the other hand, theaverage homeowner migh come in because his energy billis killing him. “We’ll help him save money, and livehealthier as a by-product. He’s moving in the green direc-tion, whether that’s his intention or not.”Best-selling single item? Windows, without a doubt. But

the best-selling category is floorcoverings. “We offer amaz-ing prices, plus full installation. We have the best flooringselection in all Austin,” he can brag, adding, “Take off theblindfold… and it’s green!”TreeHouse is fast becoming known as the go-to place

for anything solar, from a little-bitty product like a solarcharger for your iPhone to a garden fountain, a generator,or even a whole-house system.By the way, even the coffee is on the green list, bearing

fair-trade credentials. It’s there for architects and builderssitting down with clients to go over specs and blueprintsand for contractors, who stop in for an early-morning jolt ofjava before hitting the jobsite. Ask TreeHouse if it faces any local competition and the

answer is, not really. There’s a little mom-and-pop green-friendly outfit selling everything from dinnerware to babyclothes, and another showroom taking orders, where folkscannot walk off the floor with their purchase. “We’re all inthig together,” in Jason’s view.And how often, we just had to ask, were Jason and his

team snickered at as beyond stupid for opening in this slug-gish downward turn? Yeah, he laughs, they were. “But thepart of the building industry that’s growing is the sustain-able slice of the pie,” he defends their choice. “A McGrawHill study indicates that by 2016, green building will befive times bigger.” And today, folks are remodeling to save energy costs.

“We educate them about the available rebates, too—local,state, and federal. We’ll print them out, help them fill in theform, even pop them in the mail. For instance, you can get75% off a composter, or reduce your solar system bill by$10,000. And the staff are all very, very happy to workhere. They believe in what they’re doing.’And the feedback’s terrific. “Everybody loves the store.

Eventually, as a business we’ll be profitable, but we’re nothere for all the money we’ll make. We’re here as a vote forsustainability. And sales are up, so people also are votingwith their wallets. Putting your moneywhere your mouth is, is the mostpowerful tool—and we’re not yetdone with putting the message out.“We’ve made a unique commit-

ment to what matters—first toideals, and then to making money.We’re not just another aesthet-ic,” Jason declares. “We’ve adifferent soul.” And that’s thekind of soul food folks clearlyare hungry for.

IN-STORE IDEA CENTER is a ready source of green product info andsite of frequent seminars.

“extremely helpful, knowledgeable staff.” Plus, that kind ofword-of-mouth marketing not only is the most effectivekind, it’s also free.Contractors, however, notoriously drag their heels when

confronted with something new and different, like thisemphasis on building green. Jason finds he’s attracting twokinds of pros: those who are committed to green construc-tion, and those pushed in that direction by their own, maybemore savvy, clients. For one and all, TreeHouse provides lots of education—

not in a traditional showroom, but in a format Jason calls ahybrid, far from the endless aisles of products a la Depot.In each department there’s an Education Pod, where cus-tomers can interactively learn about choices in, say, coun-tertops or flooring and keep up with new technical innova-tions. “But we also give the drawbacks of any particularproduct, so customers can make their own informed deci-sions,” Jason says, adding, “Kids love to use it, too.”The store also features an Idea Center, another key

source of information. Here, classes are held for pros—ineverything from financing to courses supplying AIA andGreen Building Board professional development—and two

or three per week for the home consumer—on gardening,kids’ health, home cleaning, or energy-saving solutions. Products carried will always be a moving target. Jason,

in charge of product stewardship, notes that his choices arebased on four criteria: health, sustainability, performance,and core responsibility. “Curating the products is like curat-ing art,” he says. “I’ve been at it for five years, and it’salways evolving. I’m still adding 50 products a month. Westrictly limit them to products we ourselves would use inour homes.”And what about price? You dealers out there are well

aware of the fable that green costs more. “And that’s justwhat it is: a fable, exactly!” Jason contends, and backs uphis belief with a price-matching policy. “But we also teachcustomers the relative value of things. For instance, alinoleum floor is cheap, but you’ll need to replace it in


paste. Program selling becomes easierand easier the more we do it. Manage Accounts.Comfort is the enemy of growth.

Hanging onto C+ accounts while try-ing to construct an A+ sales career islunacy, but many do it. We start by doing an 80/20 analysis

of our accounts. Typically, 80% of ourbusiness is coming from 20% of theaccounts we are working. When weunderstand where our business is com-

ing from (and not coming from), we can begin to put ourenergy where we get the biggest return. Once the bottom 20% is split out, do another 80/20

analysis on that group. Anyone in the bottom 80% (who wehave been working for over six months) after this splitshould be taken out of our rotation. We should do this individually. Sales managers should

do this for their group if they are not doing for themselves(they are not). Although account management can be a con-tentious challenge for sales management, it is the best thingmanagement can do for a sales organization. (Note to salesmanagers: Get the group to do this on their own and it willbe a lot less painful.)Push Our Best Accounts.The best place to get business is where we are already

getting business. Our best accounts are doing businessbecause we are doing something, or many things, right. Wemust push them for more. Many sellers are afraid of upset-ting their best accounts. Our accountsare expecting us to come to themwith new and better solutions. Whenwe bring them these solutions, weneed to ask for more commitmentfrom them.Dream.Think about it. Dream

about it. Eat it and sleep it.Execute the steps and believeit, and you will double yourbusiness in 12 months.

OVER THE LAST 20 years, 100% ofthe groups I have worked with

have grown their year-over-year sales. What does it take to double busi-

ness in 12 months? The sales groupsand individuals who grow the fastest:Commit to Change. Change can be difficult, especially

when the desire for comfort is greaterthan the desire for sales growth. If wewant to do things the same way and getdifferent results, it just won’t happen. This goes for organizations as well as individual sellers.

Many organizations have leadership logjams based onseniority, for example. Changing long-term leadership orlack of leadership can hurt. Magic words don’t grow sales;we must have systemic change. If we plan on selling thesame way and just tweaking a couple things, we will notdouble our business.Commit to Prospecting.If we are waiting for our current account base to get

busier, we are looking at 5% max growth! It just won’t hap-pen. If we want to double our business in 12 months we aregoing to have to get “new business.” Let’s define prospecting: Prospecting is looking for

brand new, never-sold-by-your-company-before business.Many salespeople and organizations are just movingaccounts around or bringing old business back from thedead. This is not prospecting and will not bring the kind ofchange needed to double business.How much? If you are an experienced salesperson, two

hours a week is a minimum. This is two hours of calling apre-printed list or hitting a pre-organized list of businessesif you are in the field. This is not two hours with an hourand a half of looking things up on the Internet or drivingaround “checking for leads.” This is a focused two hours aweek. If you are a journeyman or rookie, much moreprospecting time will be needed.Propose Big. Start Selling Volume. To sell volume, we must talk to all of our customers in

terms of quarterly, six-month, and year-long programs.This is essential with existing and new customers alike.Especially when we are the preferred supplier in a competi-tive situation (we are getting over 50% of the business), weabsolutely need to propose programs to our customers forall the business.Once we have sold one program, it is time to copy and

OLSEN On SalesBy James Olsen

James OlsenReality Sales Training

(503) [email protected]

Double your businessin 12 months


THE WEATHER LATELY has been weird and wild, but getused to it. It’s the new normal. Climate scientists tell

us that weather extremes will be more common and thatlong-term patterns are shifting. This doesn’t just make the weather report on the evening

news more interesting. Consider, for example, that shiftingrainfall patterns can affect water supplies, livelihoods, andlifestyles. Some communities are facing drought—orworse—for the first time in living memory. Some placesare seeing much more rain, and some are getting their rainor snow sooner or later in the season. Any of these changescan cause big problems for communities who fail to adapt.This is where dealers can come to the rescue. Changing

weather patterns, whether drought or deluge, create oppor-tunities to do good for your community and your business. For starters, educate yourself about water issues in your

areas of operation. If you’re in a community already affect-ed, you may already be aware of local and regional rainfallpatterns and water supplies. If not, there are good resourcesonline, such as www.noaa.com.Second, build your expertise in those mitigation and

adaptation strategies your community needs. In a drought?Look into rainwater harvesting, greywater recycling sys-tems, high-efficiency toilets, even composting toilets.(Believe it or not, collecting the rain that falls on your roofis illegal in some places, and residential greywater systemsare not approved in all communities.) Read RainwaterHarvesting for Drylands & Beyond by Brad Lancaster, oneof the nation’s leading experts, then share it with your staff.

Adapting todrought and deluge

GREEN RetailingBy Jay Tompt

If your community faces periodic deluge and flooding,there are short-term mitigation and longer term adaptationsto evaluate, too. For example, in West Coast urban areasfacing huge El Niño storms, rain barrels can help reducethe runoff that overwhelms storm sewer systems. Softeningurban hard surfaces and hardscaping to allow for “slowing,spreading, and sinking” of rainfall, also reduces runoff andrecharges aquifers. Permeable pavers, anyone? For flooding, dry flood-proofing measures and elevation

may be viable short-term strategies for dealing with period-ic flood risks in some instances. However, flood mitigationis a complicated legal and technical domain—do yourhomework before diving in.Once you and your key staff are prepared, start building

stock and services around the solutions best suited for yourcommunity. Water conservation measures inside the homemight be one category that works in every part of the coun-try. And nearly all toilet manufacturers offer high efficien-cy toilets, but have a look at Niagara Conservation(www.niagaraconservation.com). They make it easy tosource a range of water-saving devices, including their ultrahigh efficiency Stealth .08-gpf toilet. I’m also a big fan of greywater recycling. It’s still early

days for residential systems, and most solutions are do ityourself or “green it yourself” projects, but this presents awonderful merchandising opportunity. Pull all the rightcomponents into a robust display, along with the righttools, some books, and related products. Check outwww.greywateraction.org for ideas. And catching the rain—it’s a no-brainer for many

regions of the country. The key component is storage. Themost innovative solution I’ve seen isRainTechnologies’ RainSpace. It’sflexible, capacious, and low cost.These kinds of solutions may

require some thinking outside thebox and a little extra effort. But theycan earn LEED credits for yourgreen builders, conserve water,and improve quality of life inyour community. You’ll bedoing well by doing good.

Jay TomptManaging Partner

William Verde & Associates(415) 321-0848

[email protected] DISPLAY of rain barrels.


FAMILY BusinessBy James Olan Hutcheson

“LUCK’S A CHANCE, but trouble’s sure,” the poet A.E.Housman wrote, speaking to the wisdom of prepar-

ing for problems as opposed to counting on good fortune.Even the most serendipitous family business will encountertrouble at some point. Some family business leaders mayturn to attorneys, accountants, family-business consultants,and other experts to provide essential support.But not all problems encountered in a family business

will require outside professional help. A well-preparedfamily business should be able to cope independently withmost of the common issues, such as hiring from within thefamily or a parent’s reluctance to step down.If you want to increase your in-house ability to deal with

challenges like these, the best thing any family businessleader can do is to install an experienced board of directors.The next best thing is to embark on a lifelong personaleffort to learn all aspects of managing a family business.

Back to SchoolThere are many family-business centers, mostly univer-

sity-based, scattered throughout the U.S. Dozens more cen-ters devoted to studying and educating people about familybusiness exist around the world. These centers sponsorresearch, organize events, and offer courses. The FamilyFirm Institute, a group for family-business advisers, offersgood resources for study, many of them available on itswebsite at www.ffi.org.Some of the university centers offer multi-year degrees

or diplomas in family-business management. Others havecourses you can complete in a few days or weeks, withvaluable information on topics as general as basic manage-ment and as specific as intergenerational wealth transfer.Prices vary. Harvard Business School offers a six-day pro-gram for a whopping $30,000 per four-person group. Lessexpensive options and single-day seminars also exist.Visit the LibraryConventions and other gatherings aimed at family busi-

ness leaders are sponsored by university or professionalfamily-business centers or held by event management com-panies. They offer good opportunities to learn. They maybe one-time affairs, featuring speakers and panel discus-sions on specific topics, or annual events that focus largelyon networking.Both can be educational, offering leading-edge ideas

from recognized experts as well as the chance to networkwith like-minded family businesspeople who can provide

Coping with familybusiness ills

more informal, but often equally useful insight.Books are another readily accessible resource. Options

range from the biographies of famous business families, todiscussions of family business management issues, to moregeneral business and professional titles. One of the mostentertaining and instructive reads on my bookshelf isBirthright: Murder, Power and Greed in the U-HaulFamily Dynasty by Ron Watkins (William Morrow, 1993),the story of L.S. Shoen, founder of U-Haul. Anotherfavorite of mine is Generation to Generation by KelinGersick, John Davis, Marion McCollom Hampton, andIvan Lansberg (Harvard Business School Press, 1997). Give Yourself an EdgeFor the most timely look at family business issues, there

are several family-business magazines, as well as regularcoverage on family business published in general businessmagazines. Family Business Review, the journal publishedby the Family Firm Institute, presents research by scholarsand practical examinations of critical issues by experiencedfamily-business advisers and leaders.If you take the time to educate yourself about family

business problems now, you’ll not only learn to solve manyof your organization’s problems without outside help,you’ll learn to distinguish between troubles that really dorequire expert assistance and those you can handle on yourown. On those occasions when you do have to hire a pro,you’ll also be better prepared to decide what kind of advis-er you need and you’ll have the tools to select the best one.

– James Olan Hutcheson is managing partner and founder ofReGeneration Partners, a family business consulting firm head-quartered in Dallas, Tx. He can be reached at (800) 406-1112 orwww.regeneration-partners.com.

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


NEVER ASSUME that customersunderstand when you fall short.

You may want to believe that theysympathize when you’re short-handedat the counter because someone calledin sick, or that they’ll be patient whena call-in order isn’t ready becauseyou’ve been busy, or that they don’tmind being placed “on hold.”While it would be nice if customers

did cut you some slack during chal-lenging times, the hard fact is thatregardless of how the economy per-forms, customer expectations of howsuppliers perform continue to escalate.It’s business evolution. Some deal-

ers and wholesalers fail during unsta-ble times, while others emergestronger than before. The strong seeopportunities to turn loyal customersinto advocates and to gain marketshare from weaker competitors. If that stronger distributor is you,

there are several things you know youmust do. For starters, ramp up yourknowledge of your customers. Findout where they are hurting and howyou can help. Determine your firm’sstrengths and flaws, and be aware ofcompetitors’ competencies. And rec-ognize that there are several thingsyou must avoid doing altogether. 1. Never think, “Our customers are

different.” One of the biggest mistakesa wholesaler makes is buying into theidea that customers in the constructionindustry are somehow different fromcustomers in the retail world, or thatB2B customers are different fromB2C. They’re not. The contractor at your counter

today will buy something from aretailer this week. He may take histruck in for an oil change and enjoycomplimentary cookies and beverageswhile relaxing in a comfortable wait-ing room. He might take his 5-year-old for ice cream where an enthusias-

Neverbe second

OVER THE CounterBy Mike Dandridge

tic scooper turns a double-dip coneinto a juggling act worthy of a Disneyentertainer. When your store is closed,he’ll go to a d-i-y box and a knowl-edgeable greeter will eagerly welcomehim. High-performing retailers likeStarbucks and Amazon establish theexpectations of today’s customers. 2. Never engage in a price war.

Identify brands that still command andget full price. Stock them according tocustomer demand. Focus on keepingmargins healthy. Avoid the “howcheap do we have to be to get thisorder” mentality. Have faith in yourown reputation as a solution provider.3. Never mention “The Economy.”

It’s easy to commiserate with cus-tomers and share in the doom-and-gloom headlines from the twitchynews people who seem committed tospreading fear. Don’t participate inthat conversation. As Warren Buffettpoints out, “Fear is very contagious.You can get fearful in five minutes,but you don’t get confident in fiveminutes.” Do you really want to makeyour customers afraid to buy? Be con-fident, not fearful.4. Never promise exceptional ser-

vice. “The customer is king,” “bestservice in town,” and “service after thesale” are clichés and hype. If your cus-tomer hears you make empty claims,they probably won’t believe you.

Instead, offer facts that can bequantified and substantiated. “Weaverage a 97% fill-rate on all orders.”“Local deliveries made within twohours, guaranteed.” “On call 24 hoursa day.” Never make a claim you can’tsubstantiate. Facts, statistics and specsare more believable than broad sweep-ing generalities.5. Never share internal problems.

Recently a customer told me about alayoff at a competitor of mine. When Iasked a friend who worked at the busi-ness in question, he verified the exactinformation that the customer had toldme. The only reason the customereven knew about it was because some-one at the company told him. Customers talk to each other. Shar-

ing negative information about yourcompany with one customer can instillpanic in your entire account base.Keep “family business” in the family.6. Never preach what you don’t

practice. Persuading your customer tobuy the latest “green” product is diffi-cult when you’re using last century’stechnology and products. If you’regoing to target the green market, youhave to practice sustainability withinyour own business. And the same goesfor any market you want to penetrate.Use the products you’re promoting.7. Never assume your customer’s

loyalty. Your most loyal customers aretypically your most profitable, espe-cially when you consider lifetimevalue. They’re most likely to referother customers to you, increasespending as they grow, and provide aninvaluable resource of information.Find out why they buy from you andwhat you can do to reward their loyal-ty. Consultant Clive Humby says,“Customer loyalty isn’t about cus-tomers being loyal to you. It’s aboutyou being loyal to your customers.You earn loyalty by giving it.”Companies that avoid these pitfalls

discover a business landscape that ismore rewarding and less competitive.Look at Starbucks, Apple, Amazon.Each occupies a position in the busi-ness stratosphere that transcends com-modity and comparison. When youtranscend commodity and comparison,your customers will say, “I’d nevertake my business anywhere else.”

– Mike Dandridge is an industry speak-er, founder of consulting firm HighVoltage Performance, and author ofBusiness Turnaround. Reach him at (254)624-6299 or [email protected].

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DEALER BriefsPerkins Lumber, Steelville, Mo., has acquired Wilson

Lumber, St. James, Mo., from third-generation owners Judyand Gene Carney.

L. Miller & Son Lumber Co. has sold its WickerPark, Il., home of the last 91 years to a developer and will relo-cate next year to a smaller site.

Hartville Hardware, Hartville, Oh., opened a 245,000-sq. ft. replacement store with drive-thru lumberyard April 12.

TimberTown USA has merged with OverseasHardwood Co. , Mobile, Al., to form TimbertownAustin, Pflugerville, Tx., specializing in softwood, compositeand hardwood decking.

William Hussong is now general mgr. and Shawn Allen yardoperations mgr.

McLean’s Hardware, Kalkaska, Mi., completely reno-vated to mark its 45th anniversary.

Ace Hardware opened a new 12,500-sq. ft. store inNewport, Oh.—the third location for owner Dick Blandford.

Mountain Park Ace Hardware, Lilburn, Ga., closedlate last month after 27 years.

Owner Charles Biddox had spent a year trying to find abuyer.

Schuele Paint Co., Buffalo, N.Y., is opening an adja-cent 3,000-sq. ft. Ace Express hardware store May 26.

Cedar Creek Buys Prime HardwoodsCedar Creek, Oklahoma City, Ok., has acquired industri-

al distributor Prime Hardwoods, Houston, Tx.“This is a key addition for Cedar Creek as it brings new

customers, quality people, and great products that willmerge nicely into our current Houston branch,” said D.Wayne Trousdale, v.p.-operations.

Do it Best Moving Up in Mid-SouthDo it Best Corp. will build a new $30-million distribu-

tion center in Sikeston, Mo., to replace the co-op’s originalfacility in nearby Cape Girardeau.The 130-acre facility will offer more than 550,000 sq. ft.

of warehousing space, along with a 40% increase in theamount of cubic footage.Do it Best opened its Cape Girardeau center—its first

DC outside of Indiana—in 1971. It now has 115 employeesto serve retail members in Alabama, Arkansas, Illinois,Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri,Nebraska and Tennessee.

Marjam Bails Out Lainhart & PotterTwo weeks before its assets were to be sold at a bank-

ruptcy auction, Lainhart & Potter, Palm Beach County, Fl.,agreed to sell its properties to Marjam Supply of Florida for$2.8 million.Founded in 1893, Lainhart & Potter filed for bankruptcy

in 2011, declaring about $2.2 million in debt.Effective March 26, Marjam took over Lainhart &

Potter’s 2.9-acre site in West Palm Beach and 1.2-acrefacility in Jupiter, Fl. Marjam now operates 31 locations,from Maine down to its seven in Florida.


Boise Cascade’s Building Materials Distribution closedits North Dallas, Tx., facility and moved operations to its newlyexpanded DC in Dallas.

Additions include 6 acres of concrete paving for outsidestorage, a 10-car rail spur, and a new 154,000-sq. ft. fullyenclosed warehouse.

Sterling Group agreed to sell 59-unit RoofingSupply Group, Dallas, Tx., to private equity firm Clayton,Dubilier & Rice.Stratton Lumber’s planer mill in Stratton, Me., sus-

tained moderate damage in an April 10 fire.

Scotch-Gulf Lumber, Fulton, Al., is investing $6 mil-lion for improvements at its sawmill in Jackson, Al.

Anthony Forest Products’ Urbana, Ar., mill is up-grading two carriage optimization systems and installing a third.

All three systems will feature MillExpert optimization com-bined with LASAR2 sensors and new computer hardware. Thetwo existing systems will be fitted with front-side only scanning,but with the capability to add back-side scanning in future. Thethird will be installed with both front- and back-side scanning.

Sunset Moulding Co., Live Oak, Ca., installed a newmoulding and finishing line at its plant in Idabel, Ok.

Parksite expanded distribution of Evolve Composites’Handi Block Deck Piers to its DCs in Ct., Fl., N.J., and Md.

Sherwood Lumber, Islandia, N.Y., will distribute a fullline of Georgia-Pacific engineered wood products from itsDCs in Palmer, Ma.; Holtsville, N.Y., and Delanco, N.J.

American Lumber, Walden, N.Y., has expanded itsdistribution of NuCedar shingles from the mid-Atlantic statesto Ct., R.I., Ma., and southern Vt. and N.H.

Arauco Panels USA’s Moncure, N.C., facility receivedFSC chain-of custody certification.

CertainTeed’s roofing plant in Shreveport, La., achievedISO 14001 certification and its roofing plant in Oxford, N.C.,earned OHSA’s 18001 certification.

James Hardie Industries acquired Teel Plastics’fiberglass pultrusion division and will operate the Baraboo, Wi.,facility as Razor Composites.

Bonsal American, Charlotte, N.C., has acquired TXIIndustries’ TXI Package Products business, includingfive plants in Texas producing bagged masonry products.

Soft-Lite, Streetsboro, Oh., has agreed to purchase theassets of Gorell Windows & Doors, Indiana, Pa., fromits court-appointed receiver.

A new subsidiary, Soft-Lite Gorell, will continue to oper-ate Gorell’s retail showroom, but relocate manufacturing opera-tions to Streetsboro, retaining its name and flagship products.

ENAP, New Windsor, N.Y., handed out Vendor of the Yearawards to Moulding & Millwork for millwork, GuardianBuilding Products for commodities, Emery Water-house for specialties, and Masterbrand Cabinets forkitchen & bath.

SUPPLIER Briefs

Rudy Buel, BlueLinx, Atlanta, Ga.,has been promoted to regional v.p.,overseeing eight branches in Texas.Phillip Murray is now roofing &insulation category mgr. CraigDenniston, ex-Norandex, is nowterritory mgr. for Kansas City, Mo.

Bethany Sawyer, ex-NRLA, has beennamed director of new businessdevelopment for Boston Cedar,Mansfield, Ma. Paul Carter, ex-New England Building Materials,is new to inside sales.

Brian Newsom is now sales territorymgr. at Wholesale Wood Products,Birmingham, Al.

Tina Kirbie has retired as president ofHandy Hardware Wholesale,Houston, Tx., after 32 years withthe company.

Jens Bursche, ex-DLH Group, is newto sales at Tradelink WoodProducts, Greensboro, N.C.

Rick Culpepper, ex-James Hardie,has been named plant mgr. atFlakeboard, Malvern, Ar.

Eddie Holzem, ex-ABC Supply, isnew to sales at Wisconsin BuildingSupply, Appleton, Wi.

MOVERS & Shakers

Bobby Crowley, ex-RichardsonTimbers, has joined Dixie Plywood& Lumber, Dallas, Tx.

George Georgiev has been promotedto president of Tolleson Lumber,Perry, Ga., succeeding JayGalloway.

Petr Masny has been promoted tomgr. of the industrial cut-to-sizedivision at Smith Phillips BuildingSupply Winston-Salem, N.C.

Kim Shrum is new to panel productssales at Weyerhaeuser Co., St.Paul, Mn.

Mark Fisher, ex-ConstructionMaterials, has joined the sales teamat Builders FirstSource, West PalmBeach, Fl. Bryan Puckett, ex-TreeHouse Green Home Improve-ment, is new to outside sales inAustin, Tx., and Rich Kniatt, ex-Tart Lumber, is now in outsidesales in the Washington, D.C., area.

Neal Bavousett is new to ENAP, NewWindsor, N.Y., as regional salesmgr. for Texas.

Jeff Allen is the new branch opera-tions mgr. at Norandex BuildingMaterials, Chesterfield, Va.

Carl Holland has retired after 30years with Sunbelt Forest Products,Bartow, Fl. Lupe Garcia is new toexport sales.

Jennifer Burroughs is now market-ing mgr. at PPG Machine AppliedCoatings, Pittsburgh, Pa., replacingPatrick Hanulak, who is nowsales mgr. in Florida.

Ben Cobb was named controller/dir-ector of HR & IT for Home Build-ers Supply Co., Greenville, N.C.

Tom Belluci is now in inside sales atAllied Building Products, Mahwah,N.J.

Dan Novak has been named v.p. ofoperations for Thermal Industries,Pittsburgh, Pa.

John C. Boykin III is new to outsidesales at Lansing Building Products,Columbia, S.C.

Lance Clark is now mgr.-membership& marketing for the InternationalWood Products Association.

James Mishler has been named c.e.o.of Champion Window Manufac-turing & Supply, Sharonville, Oh.,replacing Dennis Manes.

John Makuvek, ex-PostSaver USA,has launched sales & marketingconsultant Makuvek LLC,Kresgeville, Pa.

Gary Nackers is now director of pro-gram development for LBM at Doit Best Corp., Fort Wayne, In.Jason Peterson succeeds him asnational sales & business develop-ment mgr. Shane Burnworth isassistant merchandise mgr.;Lauren Wilson, global sourcingassistant merchandise mgr.; JaniceKoogler, merchandise coordinator;Tom Mowery, outbound opera-tions mgr.; Kathy Thieme, humanresources administrator; AprilPfeiffer, insurance coordinator, andScotty Kessler and BryantMcClellan, IT web developers.

Mark P. Klein has been promoted tov.p.-domestic sales for Klein Tools,Lincolnshire, Il.

Deb Hawkinson has resigned as exec-utive director of the HardwoodFederation to become president ofthe Forest Resources Association,Rockville, Md. She will succeedRichard Lewis, who retires July 2.

Robert Chambers is a new customerservice rep at Laticrete’s architec-tural products division, serving theHouston, Tx., area.

Keith Freed has been promoted tov.p. at Shelly Enterprises, Telford,Pa.

Jason Fraler, co-founder of BuildingIndustry Partners, has launchedLBM industry-focused merchantbanking firm Anchor Peabody,New York, N.Y. Tony DeCarlo,former c.e.o. of Lumbermen’sMerchandising Corp., will join thecompany’s advisory board.

Sandra Gump has been promoted toproduct complaint mgr. of the tech-nical center at Fomo Products,Norton, Oh.

Bob Burton, Poly Vinyl Creations,Hudson, Fl., was elected presidentof American Fence Association.

Danny White, president and c.e.o.,T.R. Miller Mill Co., Brewton, Al.,has been elected to a two-year termon the American Wood Councilboard of directors.

Winsom Cash has resigned fromMungus-Fungus Forest Products,Climax, Nv., after striking it big inthe state lottery, report HughMungus and Freddy Fungus.

Hardwood Producer RebrandsFrank Miller Lumber, Union City,

In., has launched a new, feature-richwebsite, www.frankmiller.com, as thecenterpiece of a company-widerebranding.

“We’re excited to give the designcommunity as well as our customers anew look at our company,” said presi-dent and c.e.o. Dan Hackett. “For thepast several months, Frank Miller hasembarked upon the process of evaluat-ing our existing brand and reposition-ing it to better align our strengths withour customer base.”The new website delivers an

improved user experience, with mod-ern design, enhanced content, func-tionality and interactive features.Extensive educational resources coverthe quartersawn process, hardwoodsustainability, visual characteristics,stability, and manufacturing. Archi-tects can also schedule an AmericanInstitute of Architects CES Health/Safety & Welfare/Sustainable Designsession on quartersawn hardwoods intheir offices.“Our brand was elevated from the

broader market of ‘lumber’ to afocused emphasis on quartersawnhardwood—our true area of exper-tise,” Hackett said. “We believe thenew website better reflects our posi-tion as one of the world’s largest pro-ducers of quartersawn hardwoods,while also highlighting our growthinto a thriving, global enterprise.”


Big C Expands into OhioBig C Lumber, Granger, In., has

acquired Lutterbein Lumber Co.,Edgerton, Oh., as its fifteenth locationand first in Ohio. Founded in 1924, Lutterbein’s

10,000-sq. ft. facility becomes Big C’slargest and includes a cabinet designdepartment.Big C also operates 10 yards in

Indiana and four in Michigan.

Cox Acquires Atlantic Cox Industries, Orangeburg, S.C.,

has agreed to acquire the wood treat-ment plants and related operations ofAtlantic Wood Industries, Vidalia, Ga. Founded in 1901, Atlantic has

plants in Vidalia and Sylvania, Ga.,and Newsoms, Va. Both companiesare working to quickly complete theacquisition, to ensure that all servicesand projects continue uninterrupted. Cox plans to retain “substantially

all” of Atlantic’s employees.

Minnesotaʼs Carpenter ClosesAfter nearly 116 years of business,

C.H. Carpenter Lumber has liquidatedinventory and closed its last remainingstore, in Lakeville, Mn.Longtime manager Mike Schwehr

said the decision to close was madelate last year, when owner Lee Andrandecided to retire and had no successor.The company began in Minnea-

polis, Mn., in 1896 and soon expandedby purchasing eight yards in NorthDakota. Many of the smaller yardsclosed during the Depression, but onein Litchville, N.D., stayed open until1984, while branches in Valley Cityand Jamestown, N.D., closed last year.

Adams Finds First BuyerAdams Lumber Co. has found a

buyer for its yard in Madrid, Ne.: thebranch’s manager for the last sevenyears, Tom Anderson.Anderson has renamed the facility

Anderson Lumber and is graduallyremodeling and adding new productsand services.Adams’ other yards, in Grant and

Imperial, Ne., continue operatingwhile ownership seeks a buyer.

Mill Creek Grows in WichitaMill Creek Lumber & Supply,

Tulsa, Ok., has leased a 37,000-sq. ft.facility in Wichita, Ks., that it plans toturn into a door shop, truss manufac-turing operation, and showroom. Oncethe new facility opens on July 1, the

company’s smaller truss shop in BellePlaine, Ks., will close. About 2,400 sq. ft. of the new facil-

ity will be used for a sales office andshowroom. The remainder will be splitbetween a door shop and the automat-ed floor and roof truss facility. “We think we can increase our pro-

duction capability four to five timeswith this move,” said Jay Robinson,who manages the company’s opera-tions in Wichita.

Cersosimo Powers New ProjectCersosimo Lumber, Brattleboro,

Vt., is expanding operations at its kilndrying plant in Vernon, Vt., with anew mulch processing facility and anew turbine that will produce 750 kwof electricity from biomass. “This is a long-term investment for

us,” said project manager ScottFerland. “We are already producingthe steam. This makes us healthier as acompany. Investing in diversity is thekey to doing business.” Completion of the $1.2-million

project is scheduled for this fall. The new mulch processing facility

will do business as Vermont MulchCo., with Martin Haselton as sales andproduction manager.


NAWLA 2012

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SPECIAL FOCUSBY THE NORTH AMERICAN

WHOLESALE LUMBER ASSOCIATION


THE NAWLA EDUCATION Founda-tion, or “NEF,” was started by the

North American Wholesale LumberAssociation in 2011 to educate,inspire, and plant a new generation ofleaders throughout the forest productsindustry. NEF collaborates with uni-versities to offer students engagingcoursework, exciting field experiences,and practical internships in the lum-ber distribution field.

The first NEF class was held at theUniversity of Wisconsin-Stout inJanuary. Twenty-one students spentone week learning about the complexi-ties of the lumber supply chain andwhat the industry offers as a careeroption. The students are now eligiblefor internships with NAWLA members.

The article below is a firsthandaccount of the program from one ofthose students, Swaraj Pandey:

NAWLA 2012By Swaraj Pandey

The construction department at mycollege, UW-Stout, paired with theNEF to offer a course that is a great fitfor students in a broad range ofmajors. By enrolling in this course,students qualify for an intern opportu-nity with NAWLA members. In fact,to qualify for the internship, a studentmust complete this intensive, three-credit course focused on the lumber,building material, and supply chain. The course consisted of lectures,

field trips, and case studies. The firstday of the course started with a briefintroduction related to the courserequirements and schedules. Welearned about forest ecology, ecosys-tem services, forest succession, andforest regeneration under natural andmanaged scenarios. Additional lec-tures were given on forest manage-ment and harvesting, including forest

certification. Later in the afternoon, we went for

a field trip to the school forest inBjornson Education-Recreation Cen-ter. The center has 443 acres of land.We were accompanied by a localforester who displayed extensiveknowledge of forestry. We observedthe principles of forest ecology, forestmanagement, and harvesting. Theproperty was a mix of northern hard-woods (maple, oak, ash, basswood,yellow and white birch) and conifer-ous plantations (red and white pine,spruce) with stands of poplar. The for-est management plan included selecthardwood cuts, pine plantation thin-ning, aspen cuts, oak regeneration, andtimber stand improvement projects. On the second day, we went for a

two-hour virtual field trip to AndersenWindows in Bayport, Mn. We wereable to look at step-by-step processeswhere several home projects were inprogress by top builders. AndersenWindows uses 98% of their raw mate-rials and develops long-lasting prod-ucts that have a minimal adverseeffect on the environment. Over 70%of their wood is sourced from forestscertified by the Forest StewardshipCouncil and the Sustainable ForestryInitiative. It was an impressive tourpacked with useful information. The third day included a tour of

Weekes Forest Products, a majorstocking wholesaler. We toured theirreload center and learned about a widevariety of lumber, panels, engineeredwood, industrial products, and relatedspecialty building products. Our nextdestination was Viking ForestProducts, Eden Prairie, Mn., distribu-tors of OSB, plywood and softwoodlumber products. Viking’s business

NAWLA EducationFoundation Course:A firsthand account

STUDENTS from University of Washington-Stout visited woodlands and production facilities during afive-day course co-sponsored by the NAWLA Education Foundation.

Endeck—where beauty and strength come together. Isn’t that what customers are really looking for—a gorgeous deck that can endure the punishment of time? Endeck capped cellular PVC decking is slip-resistant, impervious to stains and scratches, plus it stands up to the daily torture from pets, kids, and guests who drag heavy deck furniture from one end to the other.

Endeck is covered by a Limited Lifetime Warranty and comes in six colors—three monochromatic and three variegated—with fascia to match or contrast. You’ll need railing, of course—and Enrail® is the perfect complement to Endeck.

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Hard capstock shell protects your deckboard on all 4 sides. 100% Cellular core with no voids adds strength.

CAREER PANEL allowed professionals toshare with students how they chose the lumberindustry.


model stresses a reliable supply of theright product, on time, at a fair price.They also gave us some hands-onwork experience with the customer,which everyone thoroughly enjoyed. Next stop was the Silverwood Park

Visitor’s Center in St. Anthony. Themain purpose of the building is toshowcase and promote sustainability,while reducing day-to-day operatingcosts. The building is a 2009 Wood-works Design Award winner for itsinnovative structural use of wood. Next we went to Bethel University

in Arden Hills and explored theGeorge Brushaber Commons building,which has a 6,500 sq. ft. green roofthat incorporates a water retention sys-tem. We learned about their use ofglulam beams, purlins, and wooddecks, which gives the place a warmappeal and timeless aesthetic. We also learned about the chal-

lenges faced in constructing thisspace, necessitating the design of two-way cantilevered roof framing thatextended outside of the building enve-lope. This building is also a 2009Woodworks Design Award winner forinnovative structural use of wood. In the last two days of the course,

we spent most of our time in the class-room learning about various aspects ofthe lumber business. The basics oflogistic and supply chain managementwere taught in terms of wood andbuilding materials. We had discus-sions based on the current issues thatare prevalent in the corporate worldand the importance of having industryassociations. Construction systems and wood use

in non-residential construction areawas our focus in a class comprisemostly of construction and engineer-ing majors. We learned about evolvingmarkets for wood-derived energy andbio-chemicals. Discussion with the various mem-

bers of the career panel was held at theend of the course. These professionalsshared their life stories and their pathtowards the lumber industry. It wasvery inspiring because each of uscould relate to what they were talkingabout. At the end, we had the chanceto ask questions of each panelist.


Overall, this course provided students with a perfectplatform that inspires us to get involved in the lumberindustry in the long run. I have very positive impressions ofthe course and the industry. My major is business adminis-tration with an emphasis on supply chain manage-ment/quality management. I have always been curious tolearn more about logistics in lumber: from logging to readi-ness for use as structural material for construction or woodpulp for paper production. Many recent graduates are not familiar with the lumber

business or the opportunities it offers, but this industryoffers a wide range of professional opportunities in bothprivate and public sectors. It is a multibillion dollar indus-try that is both high-tech and environmentally conscious.The wide focus of the professional training, with its empha-sis on organization and management, offers extensive jobopportunities inside the lumber industry. There are manypossibilities for further professional development as gradu-ates can progress to higher management positions within afew years of experience. Students like me have the opportu-nity to work at a variety of companies, contributing in suchareas as accounting and finance, marketing and sales, man-agement, engineering, and logistic operations. This five-day course has given me an opportunity to

work with NAWLA as its marketing intern, which itself isa big achievement. Coming from a business backgroundwith little knowledge about the lumber industry, I now havethe chance to learn more about this industry from the oneswho know it the best.

As far as recruiting students to this industry is con-cerned, companies are responsible for promoting the lum-ber industry and providing career awareness for studentswho are graduating or have graduated. Surveys continuallyshow that there are more jobs available than there are grad-uates to fill them in this sector. Companies have to seek top, qualified students who will

be motivated and excited to contribute to businesses withinthe industry. Brand positioning is one of the strategies thatthe companies can focus on, by selling the company’s val-ues to prospective job seekers. Companies should holdseminars and educational conferences so that they can havebetter communication and feedback with the students.Career fairs are one of the most important events in a col-lege. Companies need to attend these fairs and interact withthe students by providing career awareness and opportuni-ties related to the forest product industry. Programs like NEF are blessings in disguise for the lum-

ber industry, which is going to attract a lot of new gradu-ates to become the industry’s future leaders.

– Companies interested in more information on internshipsshould visit www.nawlaeducationfoundation.org.


COMPANIES ARE ON high alert today when it comes toclosely watching their trading partners’ purchasing

patterns and pay habits. The challenging economy and acontinued tight lending environment have only served toincrease pressure on creditors to be vigilant in looking forwarning signs from customers, such as changes in orders oran increase in delinquent pay.Perhaps the most significant concern is when a long-

standing customer is sold to new owners. Immediately, rel-evant questions leap to mind: Will my current invoices bepaid in full and on time? Will the new ownership continueto buy from me in the future? Of equal significance are details frequently over-

looked—the what, who, and how—concerning a change inownership. What was actually acquired by the newowner(s)? What is the legal structure or formation of thenew company? How did the buyers fund the purchase?And, often most importantly, what is the experience andbackground of the new owner(s)?The following sections will illustrate how careful, proac-

tive due diligence should uncover the answers to these andother essential questions. What: The legal formation of the companyThe first step in determining the legal structure of a

newly acquired business—and how different it may befrom the original entity—is knowing whether it is a part-nership, S or C corporation, proprietorship, or limited lia-bility company. This designation plays a crucial role inunderstanding the liability of the new owners and, mostnotably, their personal liability, which can affect the credit-worthiness of the company. The following scenarios illustrate the potential impact of

a new owner on a firm’s creditworthiness:

NAWLA 2012By Ken Schultz,Blue Book Information Services

• The former company was a partnership or propri-etorship, and so is the new businessSince the assets of the owner(s) in a partnership or pro-

prietorship are subject to creditors, knowing the personalfinancial strength of new ownership is essential to estab-lishing the strength and liquidity of the company. • The company was a partnership or proprietorship,

and is now operating as a corporation or limited liabili-ty company If a partnership or proprietorship’s assets are purchased

and incorporated, most likely, certain personal assets (i.e., ahome, retirement accounts, etc.) of the former owner willnot be included in the sale. If this is the case, the liability ofthe new ownership is limited to the actual assets purchasedand placed into the corporation. As such, the amount ofassets available to creditors will have diminished; knowingwhich assets were transferred into the new corporation willhelp determine if the new company’s balance sheet is asstrong as before the purchase. • The company operated as a corporation and the

purchase included all outstanding capital stock of theorganization In purchasing all capital stock, new ownership acquires

all assets and liabilities of the former owners, which arethen subject to creditors’ rights.How: Details of the purchaseIn addition to understanding the new company’s legal

structure, it is also advisable to know how the purchase wasfinanced. Some new owners may not publicize details ofthe acquisition, but this information may have direct impacton the company’s creditworthiness going forward. Under-standing the new firm’s financing will verify any impact itmay have on its financial position. Since most companiesare corporations, the following illustrations assume the pur-chase was for the former owner’s capital stock: • New owner(s) bought the company using personal

finances The company itself does not incur any debt and there is

no direct impact on its equity position. It should be noted,however, if the new owner obtained personal financing tobuy the stock, the lending institution likely would requirecollateral to be posted against the loan—and business assetsare often pledged as collateral.• New owner(s) borrowed money from a financial

institution for the capital stock and will retire the (trea-sury) stock The company’s balance sheet shows an increase in lia-

Financial pitfalls of selling tonewly acquired companies


bilities by way of long-term debt, with a correspondingnegative entry on its capital statement, creating a negativeeffect in overall equity position.• New owner(s) financed the purchase of capital stock

through a note payable to the former owner(s) A payout agreement is signed, requiring installment pay-

ments to the former owner(s). Similar to bank financing,this creates long-term debt affecting the liability section ofthe balance sheet. With the addition of debt, the overallequity of the company can be impacted.Keep in mind, with the last two scenarios, adding debt to

the company’s balance sheet can have an effect on itsworking capital position as well.Who: The new ownership’s vision for thecompanyAnother more tangible aspect of an acquisition concerns

how new owner(s) will manage and operate the company.When a business changes hands, there is no guarantee thenew owners will handle day-to-day operations in the samemanner as their predecessors. The following questions needto be answered to determine whether to continue doingbusiness with the company:• What is new ownership’s vision for the company?Oftentimes, new ownership may look to expand the

company’s focus to include new product offerings, obtainnew customers, or change buying and/or selling strategies.Expanding a product line may be detrimental if the compa-ny has no experience in that particular business segment.Adding new customers is generally a focal point of all com-panies; however, the quality of new accounts may impactyou and your business. For example, if new accounts are slow in paying, it

could have a domino effect on how fast you are paid.• What is the background of the new owners?An essential question to consider prior to continuing

your association with an account is the industry-relatedmanagement experience of the new owners. Consider thefollowing questions about the new ownership when makingthis determination:* Do they already own an established company within

the industry? Creates the highest confidence level with a solid track

record of experience, trading practices, and financialstrength already known throughout the industry.* Were they a key part of former company’s senior man-

agement team?Examples include a former officer such as c.f.o., c.o.o.,

or vice president of operations with several years experi-ence. Generally, these individuals were an integral part ofthe company through leadership and decision-makingresponsibilities. As such, they are more likely to lead andmanage business relationships successfully.* Were they a key part of former company’s operations

or sales team? Examples include a former general manager or vice

president of sales, already known to your company.However, given these individuals probably did not havemeasurable control over how the company’s finances werehandled, payment procedures and finances of the new firmshould be closely monitored.


* Is this a succession of next-gener-ation family member(s)?It is important to know which fami-

ly member will be taking control,along with his/her previous role andtenure within the organization. Forexample, a family member who had anintegral role running daily operationsover several years versus one whoonly recently joined the companycould have a vastly different effect onthe business. * Do they have little or no industry

background and experience?The lumber industry is unique unto

itself and though a lack of specificexperience doesn’t mean a company’sperformance will be adversely affect-

ed, lacking an industry track record isan element of uncertainty that won’tshow up on a balance sheet. Whenowners without industry experiencetake over, you must consider theirexperience in other industries andmeet with them personally. Additionalquestions to ask: Are the new ownersactively committed to their customers,suppliers, and the industry? Are theyasking the right questions, interestedin learning, or acting as if they alreadyhave all the answers? Much to considerWhenever a company is sold, there

are many factors to consider in deter-mining whether to continue or scaleback your working relationship.

Questions about structure, ownership,finances, and background are essentialand must be answered. Blue BookServices uses these very questions andsubsequent answers to determine if anexisting rating will continue followingthe sale. You, too, can benefit by ask-ing these questions, or at minimum,obtaining an in-depth Blue Book busi-ness report as a necessary step in yourdue diligence.

– Ken Schultz is vice president of ratingservices at Blue Book Services, a leadingcredit and marketing information agencyfor the lumber industry. He has over 20years experience with Blue Book Servicesand is a certified credit executive. Contacthim at (630) 668-3500 [email protected].


TRADERS MARKET will be returning“home” to Chicago in 2012 after

spending a year in Las Vegas. It willbe the sixth time the show is held inChicago, giving it a familiar feel tomany attendees. The 2012 TradersMarket will be held November 7-9 atthe Hyatt Regency Chicago.Since 1996, Traders Market has

held 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.

This focus on supply chain partnershas fostered an unrivaled atmospherefor networking. In today’s global mar-ketplace, Traders Market provides achance 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.At time when many tradeshows are

struggling, Traders Market continuesto grow. Overall attendance in 2011increased 11% from 2010, with almost1300 attendees from 10 countries. Asin 2010, the attendee profile wasalmost evenly split between whole-salers and manufacturers. “We are proud that Traders Market

NAWLA 2012NAWLA Traders Market

has solidified its place as thetradeshow you can’t afford to miss,”says Gary Vitale, NAWLA c.e.o. andpresident. “The lumber industry maybe struggling, but the companies whoattend the show can help positionthemselves for success.”The 2012 show will follow the suc-

cessful and popular format from thelast couple of years. The floor showwill be open on Thursday and Friday,allowing attendees to enjoy Chicagoover the weekend or return home.Other recent additions, such as theProduct Showcase, will also return.One big change this year is that

NAWLA has added new membershipcategories that will also be able toattend the show. Of special note is thattimberland owners and architects arenow eligible to be associate members.Their presence at the show willincrease the number of timberproviders and product specifiers.Lumber mills who exhibit will benefitfrom having both their suppliers andend users attend.“Traders Market has become one of

the best values in the lumber indus-try,” says Vitale. “In fact, the feeshave remained the same since 2008, ata time when the cost of just abouteverything has gone up. We want theattendees to know the show is there toserve them.”The Traders Market website—

www.nawlatradersmarket.com—hascomplete information on the schedule,fees, floor layout, hotel reservations,and sponsorships. Registration hasalready opened for exhibiting compa-nies and individual attendees. Onceagain, registration will be exclusivelyonline.

NAWLA Traders Marketreturns to Chicago


QUESTION: IN REGARDS to personal-ity conflicts with an account, at

what point do you walk away and letsomeone else in your organizationtry?Great question. Let me answer in

two ways. First, from a purely theoretical per-

spective, a professional salespersonshould be able to build relationshipswith anyone, regardless of the person-alities involved. So, from a theoreticalpoint of view, the answer would be“never.” It is the responsibility of thesalesperson to figure out how to sellto every account, and every personwithin the account.There are some selling situations

where this “theoretical” positionbecomes part of the practical expecta-tions for a salesperson. Large geo-graphical territories, for example,don’t allow for the option of letting

NAWLA 2011By Dave Kahle

Don’t jeopardize saleswhen personalities clash

and flexible enough to figure out howto sell to every account.So, we’re back to your question. I

don’t think there has ever been anyresearch on this, so my answer comesfrom my personal experience. A large part of the answer depends

on the company’s position in the mar-ketplace, their strategies, and theavailability of a capable “someoneelse.” For example, if you have a hotnew product with a limited window ofopportunity, that would shorten theamount of time that a company couldwait for a sales person to successfullypenetrate an account.In a mature market, where com-

petitors are jostling for business fromone another, that could lengthen thetime a company could wait.The same is true for a capable

option. If you have no capable personprepared to take over the account, thetime frame expands. If you have agood person chomping at the bit, thatinfluences your calculations in theopposite direction.With all that said, my gut feeling is

a year or two. It’s going to take atleast a good year to exhaust all thepossible strategies for penetrating theaccount. And there is no use changingthe account until the current salesper-son has given it his/her best shot. So,at least a year, maybe two. If there isno progress at that point, nor any signof imminent changes, it’s time tomake a change.

– Dave Kahle has trained tens of thou-sands of distributor and B-2-B salespeo-ple and sales managers to be more effec-tive in the 21st Century economy. He’sauthored nine books, including his latest,How to Sell Anything to AnyoneAnytime. Reach him at (800) 331.1287 orvia www.davekahle.com.

someone else try.Having said that, let’s recognize

that there are very few salespeople inthe world who are analytical enough,creative enough, motivated enough,


ACCORDING TO A recent Fortune article penned byColleen Leahy, more than 13 million workers will be

65 and older by 2022. That’s up 7.3 million from today.Currently, more than one-third of the U.S. workforce ismade up of Baby Boomers. What role does the ongoingpresence of post-retirement-aged workers play in the effec-tiveness—and the motivation – of intergenerational teams?The dynamic of intergenerational teams—those work-

groups made of employees from more than one genera-tions—can be either a source of conflict or can lead tocooperation, collaboration, and a more balanced and pro-ductive team. For leaders, the differences that intergenera-tional teams bring to the workplace can be an asset in cre-ating a varied idea exchange leading to greater innovation.CBS Money Watch recently quoted a blog post by

Careerealism, a career management blog: “By having amulti-generational workforce, blind spots can be avoidedto a large degree. A clear example is the issue of technolo-gy. The young bulls (of either gender) want to have tech-nology, technology, and more technology. The older bulls(of either gender) can put a quash on making the companytechnology based for technology’s sake. This vital tensionmeans that essential technology will be implemented, but

NAWLA 2012By Herb Greenberg, PhD, and Patrick Sweeney

non-essential technology will not—at least ideally.”Also, younger workers are more likely to take risks that

can benefit the company if there is a safety net of olderworkers to catch them if they fall. Conversely, older work-ers can rapidly fall behind the times and be beat by com-

petitors if they don’t keep up. Amulti-generational workforce letseach generation do what they do best,without a fear that something will bemissed. This leads to greater creativi-ty and a better flow of ideas withinthe company.This vital tension creates an oppor-

tunity for team members, of all ages,to share their own unique perspec-tives, work to their own strengths,approach each problem differently,and offer solutions that may have notbeen considered before. So as a result,among those differences lies a com-mon ground: the common project orcompany goal toward which eachteam member strives. And each teammember is pivotal in balancing out theother.Understanding that each person’s

personality creates a gateway intotheir work style and problem-solving

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methods, regardless of generation,should be encouraged. A focus onindividual personality, and the person-ality dynamics of a team, as opposedto generalizations about groups, is thefoundation for unleashing the powerof diversity in the workplace. Unlocking the inherent strengths of

each team member can provide anopportunity to create a work plan thatcan further drive success in a multi-generational team. In fact, JenniferDeal, author of Retiring theGeneration Gap: How EmployeesYoung & Old Can Find CommonGround, suggests that people from dif-ferent generations have surprisinglysimilar values for what they seek atwork. She found consistency in wanti-ng credible and trustworthy leaders,little change, and someone to coachthem. So if we all tend to hold similarworkplace values, what may cause the“tension” may lie in “how” this isaccomplished and in the “who” of per-sonality dynamics. Understanding generational differ-

ences in “how” people approach work,coupled with an understanding of whopeople are and what motivates teammembers, is likely to increase accep-tance of others and provide a frame-work to take individuals and create ateam. Further, we all get older, but our

generational cohort remains. Olderworkers tend to report higher levels ofoverall job satisfaction and commit-ment. Research in the 1970s and1980s, before Generation X was work-ing, showed evidence of negativestereotypes and attitudes towards olderworkers in general. Since we will allage as we work, the importance ofunderstanding our generational cohort,intergenerational differences, and ourown personality strengths becomescritical to alleviate age-related stereo-types of our teammates that couldresult in a dysfunctional or an under-performing team.This type of discussion facilitates

team development. The importantthing to know about team develop-ment, especially in a diverse team, isthat nothing is a quick fix. Teams aredynamic. Individuals come and go,develop their own strengths, age.Goals and objectives will change overtime. Development must be ongoing—it should begin with the current teamor at the time of hire and continue


throughout the company indefinitely.It isn’t until the company embracesteam development as part of its culturethat a team can be truly effective.For example, perhaps your team

meets once a month to go over bothpast and upcoming projects and howthey efficiently moved forward orwere delayed. By recognizing person-ality differences, the team may realizeefficiency was strengthened or weak-ened by clashing personalities. Theteam can then go over its strengths andcome up with creative processes orstrategies, together with their manag-er, to ensure that the team works evenmore effectively moving forward.When leaders present such process-

es as growth opportunities, it will helpto engage employees. Team develop-ment can be customized and tieddirectly to company goals and objec-tives—both for revenue growth andemployee retention.The implications from the Fortune

article are endless, but there is onething for certain: no matter the compa-ny or the industry, in cases whereemployees are working in multigener-ational teams, it’s imperative to imple-ment team development programs.Leaders must understand who makesup the team, from not only a genera-tional perspective, but also from a per-sonality perspective, and use thoseinsights to understand what each indi-vidual brings to the table in order toget the most from the team as a whole. With regard to organizational strat-

egy, it’s important to pinpoint poten-tial team issues before they becomedetractors of productivity—which iswhy leaders should foster regular teamdiscussions around projects goals andoutcomes.Older employees can offer endless

value and experience to their teams,and younger workers coming into theworkforce can bring fresh perspectiveson age-old processes. Keeping up in aworld that changes minute by minuterequires an investment in the peoplewho will take the company forward—as well as an understanding of howeach unique individual contributes tothe bottom line, regardless of age.

– Herb Greenberg, Ph.D., is thefounder and c.e.o. and Patrick Sweeney ispresident of international managementconsulting firm Caliper, Princeton, N.J.Reach them via www.caliperonline.com.


THE BUILDING INDUSTRY enjoyedunprecedented growth during a

decade of economic expansion, whichpeaked in the first quarter of 2006.Quarterly GDP growth, housing starts,and the U.S. banking system deceler-ated like a wild roller coaster in 2007and 2009. Executives who engineeredsurvival strategies should be givengold medals. Instead, their reward is anew challenge to fund the workingcapital required to finance theinevitable industry recovery amidst achanged banking system. There is a silver lining to every

cloud. Adversity breeds innovation. Aglance in the economic rear view mir-ror serves as a shocking recognition ofthe realities of the “New Normal”economy. Business owners may be inthe hot seat, rather than the driver’sseat, in financing growth needs. Suc-cess starts with a mindset shift towardinternally generated cash to reduceoutside funding needs (better position-ing a firm as a candidate for funding)and awareness of innovative newfunding to align needs to solutions.

Economy of the future:“New Normal”Some 437 banks have failed since

2007. This includes 306 in 2009-2010,92 in 2011, and 11 in first quarter2012. The FDIC placed 844 of theremaining 7,436 banks on a watch listnear the end of 2011. Trepp LLC’s2012 Banking Sector Outlook catego-rizes 218 banks as representing a highrisk of failure. Reuter’s “CreditCrunch an Unusual Ally in U.S.Lumber Rally” (March 14, 2012) indi-cated distributors are having troublebuying lumber in the tight stocks envi-ronment and—unable to get capitalfrom banks—are buying futures. Thisis continued evidence of the lingeringbank credit crunch of recent years.

Bloomberg BusinessWeek’s “WhySmall Business Can’t Get Financing”

NAWLA 2012By Robert L. Turner III

(Sept. 2010) highlights severe financ-ing challenges faced by small busi-nesses. The top concern of small busi-nesses is access to capital. More than50% felt they could increase saleswith additional financing.

The Chicago Tribune’s “SluggishEconomy Feels Like New Normal”(June 12, 2010) suggests economicsickness beginning in the financialsystem lingers in the economy a longtime. This creates a long sluggish peri-od with high government debt, sloweconomic growth of 2% to 2.5%, andsticky unemployment. This lasts solong, it begins to feel “normal.”These factors and unemployment

drive housing starts, which createdemand for building materials. Startspeaked at seasonally adjusted 2,273,00in January 2006 and hit the trough of478,000 in April 2009. This is declineof 79% and the worst activity levelsince 1959. Starts were 610,000 in

Funding working capitalin the new economy

2011, and are projected to be 678,000in 2012. Putting this in perspective,starts did not drop below 1 million anyyear between 1960 and 2007!Companies survived this Great

Recession by liquidating assets,stretching payables, and slashing over-head. The U.S. recession technicallylast 18 months, from December 2007through June 2009. However, housingand building products lag overall eco-nomic recovery. Building productsfaces the “Great Hangover.” Next?The welcome, but painful, need tofinance working capital for growth.Given the lingering pain within thebanking industry, fresh fundingapproaches are mandatory.

Building Products:Preparing for the rollercoaster’s “third turn”The industry’s wild roller coaster

decelerated at “Turn 1” in the third


quarter of 2008 with financial market turmoil, a businessfailure epidemic, and GDP growth of -6%. This was a dra-matic fall from 5.1% GDP growth in first quarter 2006.Turn 2 began in 2009 as housing starts plummeted 79%from the January 2006 peak, and continues as firms hold onfor survival pending economic recovery.The long-awaited Turn 3 is showing recovery signs of

the market turning upward. Turn 3 presents a new chal-lenge, one of funding growth driven by long-term housingdemographics. Banking’s loss-driven aversion to housing-driven businesses is a challenge. If housing starts doublefrom around 610,000 in 2011 to 1,220,000 within a fewyears, which is possible, the industry’s working capitalneeds will also double. Executives face daily sales, operations, employee, and

financial challenges. Cash is the “fuel” required to operatea business. Without it, the business stops. Six steps to funding working capital &taking control of your destinyStep 1: Shift Mindset to Prioritize Financial ConceptsCountless books bombard executives with magical solu-

tions for improving working capital. There are no silverbullets. There is no substitute for disciplined executution ofbasic concepts. How and where should companies focus on

financial priorities? The simple I, D & A approach: Insidethe company. Down the financial statements. Across theorder-to-cash cycle. This results in both operational andfinancial discipline producing and profitability.Focusing “inside the company” generates cash before

relying on loans. Concentrate on what you control.Companies will generate more cash and/or become a bettercandidate for subsequent financing alternatives. Step 2: Look Down the Balance Sheet for the GreatestCash Opportunities. Think of the 80/20 rules. Which 20% of balance sheet

items provide 80% of the cash generation opportunity?Receivables, inventory and payables are obvious targets.Step 3: Look Down the Income Statement for ProfitMargin or Cost Improvements. Opportunities to improve profit margins and/or reduce

operating expenses, albeit even by small percentages, pro-duce significant benefits.Step 4: Use the Statement of Cash Flows to UnderstandWorking Capital Requirements. Cash, not net income, is king! This important, grossly

underutilized tool reconciles net income to net cash. Step 5: Look Across the Order-to-Cash Cycle toTighten Costly Process Gaps. CFO Magazine’s “Working Capital Scorecard” (June

Figure 1


2011) benchmarks working capitalacross many industries by using aDays Working Capital (DWC) mea-sure. DWC is comprised of days ofsales outstanding in accounts receiv-able (DSO), plus days of inventory onhand (DIO), less outstanding accountspayable (DPO). (Note: Many firmsuse cost of goods sold in lieu of salesfor both inventory and payables calcu-lations.) Figure 1 (previous page)illustrates the working capital inten-sive nature of building products busi-nesses, and distributors.What does 53 days of working cap-

ital outstanding mean? Example: Abuilding materials business with $60-million annual sales, divided by 360days, generates $167,000 in salesdaily. A one-day improvement inDWC is worth $167,000 in workingcapital. The 53 DWC days multipliedby $167,000 equals $7,651,000 in networking capital funding. Most businesses suffer from

process linkages and inefficienciesacross the order-to-cash cycle, such asbilling delays, which add workingcapital needs in addition to the DWCcalculation above. Accounts receivable is a large, crit-

ical working capital improvementlever. Why? Receivables are the “clos-est to cash” asset, and can account forup to 40% of assets and half of the networking capital investment. Waiting35 to 45 days for payment is problem-atic enough, but there is also the riskof non-payment loss. Inventories are equally important.

Both receivables and inventory mustserve as a solid collateral base forworking capital loans. Poorly man-aged receivables and inventories arenot attractive to funding sources.Step 6: Seek New Funding OptionsAvailable in the Market.Success with steps 1 through 5

positions any business as a strongercandidate for traditional or new fund-ing solutions. Internally generatedcash results in a “cleaner house” withmore efficiently managed capitalassets and quality lender collateral. Financing sources prefer to fund

growth of a well-run company, ratherthan funding the clean up of old prob-lems. In a market with more aversionto risk, tight underwriting standards,and limited funding, firms with well-managed working capital assets havemore success with financing.

Working capital fundingalternativesBusiness owners have many

options. Each is designed to meet dif-ferent needs, and each has both proand con tradeoffs. Types of traditionalworking capital funding include: • Bank Line of Credit (LOC)This has been common for estab-

lished businesses with strong credit,quality assets, and solid cash flow.Small businesses are challenged tosecure this type of funding in today’sbanking environment.

• Asset Based Loan (ABL)ABL loans may be a fit for highly

seasonal businesses with detailed his-torical financials and significantassets, which may be tightly moni-tored. Lenders today are concernedabout valuation of collateral.• EquityThis works if the owner is willing

and able to invest significant personalassets in the business, and/or take onnew partners. However, it is often themost expensive type of financing. • Factoring of Receivables or Pur-


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funding option, albeit with advantagesfor early stage or high growth busi-nesses with quality accounts receiv-ables or purchase orders. • Equity Investors and/or Sale of

Your Business:Many private equity investors are

warming up to investing in buildingmaterials related firms. “BuildingProducts Manufacturers—A MitigatedStrategy to Invest in the DistressedReal Estate Market” (March 15,2012), by Don Walker, John BurnsReal Estate Consulting, is encourag-ing. He indicates that an investment inbuilding materials manufacturingallows one to bet on the recoverywithout the complexity of investingdirectly in distressed real estate. “M&A: 2011 Review & Look

Ahead,” by BMO Harris Bank’s Engi-

neering & Construction Group, sees alarge buy-side demand in the market.FMI’s Porter Wiley, managing direc-tor of the Building Products Practice,reports seeing lots of demand on thebuy and sell side. Both sources, alongwith others, indicate the challenge ismultiples not being in line with histor-ical averages due to depressed EBIT-DA. An improving housing marketshould alleviate this to enable moreM&A activity in 2012-2013.Economic adversity also breeds

innovation, in the form of new typesof funding. “Entrepreneurs Turn toAlternative Finance” (BusinessWeek.com, Sept. 2009) indicated that asset-based lenders, factors and others arefilling the void created by banks tight-ening lending standards. Focus on accounts receivable first

is paramount. Why? Business tradecredit in the U.S. is 1.5 times larger

than the commercial bank loan market(Credit Research Foundation, 2009).For building products firms, accountsreceivable is one of the largest, con-trollable and the closest-to-cash asset. • Professional Collection/Receiv-

ables Management Firms like Chicago-based Brown &

Joseph combine the latest credit intel-ligence technology with professionalresources typically unavailable tosmaller firms. Businesses are utilizingoutsourcing-type solutions to moreeffectively manage accounts receiv-able collections and reduce overheadexpense.• Sale of Old or Written Off

ReceivablesAll firms have sustained uncol-

lectible accounts receivable accountsresulting in charge-offs to bad debts.Brown & Joseph offers a program toevaluate these old receivables free ofcharge and pursue collection of samebased on pure contingency fees. Thiscan be “found cash.”• Business Line of Credit

(Business LOC)Atlanta-based AdvancedAR offers

a business line of credit alternative todirect bank financing, by combiningprofessional accounts receivable man-agement with fast access to financingat attractive rates. By improving yourreceivables processes to reduce DSOand bad debt, accounts receivableserves as collateral for the credit line. • M&A Liquidity OptionsMany business owners have sur-

vived the recession and desire exitoptions. Atlanta-based M&AMarketplace by CHC is an innovativeconcept to connect owners/sellers withpre-screened buyers via a seller-friendly auction without the cost andcomplexity of the investment bank-


ing/broker process. • Reverse Factoring ExpoCredit Corp., Miami, is partnering with Banco

Sabadell to provide a program that helps business costeffectively extend trade payables to suppliers. This is anopportunity for a business to extend trade credit financing,while enabling the supplier to obtain faster payment.• Trade Finance, Purchase Order Financing, & SBA-

Backed LoansHana Financial, Los Angeles, provides an array of alter-

natives. This firm handles financing for all sizes of clientswith options ranging from factoring of receivables to com-plex purchase order financing and SBA loans. • Supply Chain FinancingKonnecta, Atlanta, has developed an innovative program

with HSBC Bank, combining a rich technology platform,trade credit expertise, and financing pre-qualification to

Figure 2

cost effectively facilitate trade credit financing for bothsuppliers and customers. With pre-arranged banking sup-port and electronic visibility across the supply chain, tradepayables or receivables may be extended or accelerated. Many new types of non-banking funding and cash gen-

eration solutions have evolved to meet today’s conditions.Private equity and merger and acquisition activity isimproving. Savvy investors understand housing cycles.This will generate positive interest in, and options for,building materials firms.

– A longtime building materials industry executive, Robert L.Turner III is c.e.o. of Smart Profitability Solutions LLC(www.smartsafetygulfcoast.com) and the founder and a directorof Management Services & Associates LLC, providing middle-market firms with liquidity solutions focused on generating work-ing capital. Reach him at [email protected].

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Photos by BPDTEXAS DEALER EXPO

LUMBER ASSOCIATION OF TEXAS gathered April 12-14 at La TorettaResort on Lake Conroe, Montgomery, Tx., for its 126th annual conven-tion. [1] Terry Secrest, Joe Burlison, Tony Rocha, Mit Scott. [2] Joanne& Bill Lawson, Charlie Cron. [3] James & Deborah Drennan. [4] TomWestbrook, Amber Chojnacki, Steve Rowell. [5] Brandt McCoy, RogerDankel. [6] Robert & Marilyn Archer. [7] Matt Sullivan, Diane Judah. [8]Mary Cunningham, Ray Sale. [9] James Coghlan, Kenny Beauvais. [10]James Moore, Ann & Jeff Christensen. [11] Corby Biddle, Stan Bell, Al

Cron. [12] Mike Feltner. [13] Cheryl Bailey, Bill Tilghman, HeatherDonnelly. [14] Bruce Agness, Mike Feltner, Nate Mathis, Myrtha Castillo,Eddie Stafford. [15] Matt Mullin, Chuck Pool, Brian McCoy. [16] BobMion. [17] Richard Bilton, Arthur Cavazos, Mike Wanek. [18] MichaelHarrison, Gary Keith. [19] Kevin O’Connor. [20] Dan Hudson, TedJohnson.

(More photos on next two pages)


MORE LAT (continued from previous page) atLa Torretta Resort: [1] Dean Ruonavar, ChadCross, Bobby Leisner, Kelly Bishop. [2] Melvin& Ginger Faircloth, Ray Miller. [3] Ann & EddieHoward, JoAnn Gillebaard, Tom Clennon,Judy Childress. [4] Dave Gaudreau, ErinDenny. [5] Nathan Sikes, Brenda & MikeAaron. [6] Mike Newsom, Julie Baker. [7] BrittInman. [8] Matt Campbell, Rufus & MariannaDuncan, Chris Swanson. [9] Alan Oakes,Karoline Fromme, Cally Fromme. [10] MikeKelly. [11] Scott Boyer Sr. & DeDe Boyer. [12]Herman Sanchez, Dan Gilbreath. [13]Stephani Bisignano.

(More photos on next page)

TEXAS D

EALER

EXPO

Photos by BPD


LAT CONVENTION #126 (continued from previous two pages): [1] BillCullen, Tosh Strader, Tim Kunkle. [2] Gary Cox, Royce Slaven. [3] MikeBarry, Tom Molloy. [4] Pat Wolever, Dave Sherwood, Brent Baker. [5]Chad Mizell, Shane Neal, Randy Warner. [6] Ross Dill, Raul Peralta. [7]Richard O’Dell, Mark Thorn. [8] Kory Klein, Matt Robinson. [9] Michael &Terry Diecidue. [10] Michael Dube, James Drennan, Craig Blakemore,

John C. Jones, Bobby Davis. [11] Paul Veillette, Garnett Douglass. [12]Tom Taylor, Jessica Navascues. [13] Carter Smith, Cheryl Sparks, ChrisMcCollum, Chris Roberson, Ignacio Castillo. [14] Barbara Douglas,Walter Foxworth. [15] Steve Bryan. [16] Greg Frey, John Rodriguez,Bobby Crowley, Scott Von Gonten, Buddy Haile, Gary Cox, PaulVercher.

Photos by BPDTEXAS DEALER EXPO


ASSOCIATION Update

IN MemoriamClifford Leroy Cramer, 94,

retired president of Cramer’s HomeBuilding Centers, East Stroudsburg,Pa., died April 3.During his time with the family

lumber business, he served as chair-man of the board of LMC and MiddleAtlantic Lumberman’s Association.He retired in 1976.Leon A. “Rope” Ropelewski, 91,

retired co-founder of RobinsonBuilding Materials, Elmira, N.Y., diedMarch 9 in Elmira.During WW II, he served with the

U.S. Army, landing at Omaha Beachand fighting in the Battle of the Bulge. After helping to launch the busi-

ness in 1959, he served as v.p. untilretiring in 2003 at age 83.Gerardo “Jerry” Zezima Jr., 80,

owner of the old Zezima Paint &Hardware, Norwalk, Ct., died March28 in Wilton, Ct.

Lumber Association of Texaselected Matt Mullin, Alamo Lumber,San Antonio, Tx., as its new president. Also installed: 1st v.p. John Jones,

Cassity Jones Lumber, Longview; 2ndv.p. Ted Galbraith, Foxworth-Gal-braith, Dallas; treasurer MarilynArcher, Morton Lumber, Borger; sec-retary Michael Hayden, RiversideLumber, New Orleans; sgt.-at-armsBrian McCoy, McCoy’s, San Marcos;associate v.p. Brenda Elliott, Temple-Inland, Diboll; Louisiana v.p. JonCromwell, Riverside Lumber, andimmediate past pres. Rufus Duncan,HBC/Higginbothams, Comanche.Northwest Lumber Association’s

Wisconsin dealers recognized BruceBraaksma, Royal Lumber Yards,Friesland, as Dealer of the Year.Northeastern Retail Lumber

Association affiliates are hitting thelinks this summer.Golf outings will be sponsored by

the New Hampshire chapter June 7 atLake Sunapee Country Club, NewLondon; Eastern New York June 14,Orchard Creek Golf Club, Altamont;Maine June 18, Falmouth CountryClub, Falmouth; Central New YorkJune 21, Walden Oaks Country Club,Cortland; Northern New York June26, Ives Hill Country Club, Water-town, N.Y., and Western New YorkLumber Dealers Assn. June 26, BristolHarbor Golf Club, Canandaigua, N.Y.WNYLDA is also hosting a fishing

trip from from Buffalo Harbor June1—the same day as the Massachusettsdealers’ summer outing in Chatham.International Wood Products

Association elected Warren Spitz,UCS Forest Group, Toronto, as presi-dent, succeeding Alan McIlvain, AlanMcIlvain Co., Philadelphia, Pa.Cindy Bergin, Newman Lumber,

Gulfport, Ms., is now v.p. and ChrisConnelly, Wood Brokerage Interna-tional, Lake Oswego, Or., treasurer.Joining them on the board are Livy

Haskell, Lumber Liquidators, Toano,Va.; Carl Gade, Penrod Co., VirginiaBeach, Va.; Paul Gates, TradelinkWood Products, Greensboro, N.C.;David Weed, Robert Weed Plywood,Bristol, In.; Craig Forester, RexLumber, Manalapan, N.J.; JoAnnKeller, Holland Southwest, Houston,Tx.; John Hedin, Columbia ForestProducts, Greensboro, N.C.; Bronson

Newburger, Clarke Veneers, Jackson,Ms.; Kenny MacMaster, Argo FineImports, Metairie, La.; Geoff Dou-dera, Liberty Woods; Greg Simon, FarEast American; Elizabeth Baldwin,Metropolitan Hardwood Flooring;Gregg Wilkinson, Bridgewell, andHugh Reitz, PRS Guitars.Southern Forest Product Asso-

ciation announced that programadministrator Julie Brumfield anddirector of treated & industrial mar-kets Russell Richardson are no longerwith the association. Richard Kleiner, director of inter-

national market development, willassume the duties of treated marketsdirector. Eric Gee, director of Expoand forest resources, will provide sup-port as director of industrial & specialproducts markets. Brumfield’s dutieshave been reassigned to other staffers.Southern Cypress Manufacturers

Association welcomed Chuck Harris,Custom Lumber Mfg., Dothan, Al., aspresident. Shepard Haggerty, WilliamsLumber, Rocky Mount, N.C., is v.p. Hardwood Manufacturers Asso-

ciation elected Jack Shannon Jr., J. T.Shannon Lumber, Memphis, Tn., pres-ident at its recent national conference. Skipper Beal, Beal Lumber, Little

Mountain, S.C., is now 1st v.p. andRichard Wilkerson, Anderson-TullyCo., Vicksburg, Ms., 2nd v.p.New directors: Ray Wheeland,

Wheeland Lumber, Liberty, Pa.; Scott

Shaffer, Bingaman & Son, Kreamer,Pa.; Brian Schilling, Pike Lumber,Akron, In.; John Lindeberg, WellbornCabinet; T.J. Rosengarth, NorthwestHardwoods, and Bob Miller, FrankMiller Lumber, Union City, In.New to the executive committee

are Miller; Tommy Battle, BattleLumber, Wadley, Ga.; RhondaKendrick, Kendrick Forest Products,Edgewood, Ia.; Nordeck Thompson,Thompson Appalachian Hardwoods,Huntland, Tn., and Pem Jenkins, TurnBull Lumber, Elizabethtown, N.C.


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

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

0231 or dkoenig@ building-products.com. For more info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of pre-vious month.

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DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

Construction Suppliers Association – May 9, insight meeting,Perry, Ga.; (678) 674-1860; www.gocsa.com.

New Hampshire Retail Lumber Association – May 10, boardmeeting, Huttig Building Products, Hooksett, N.H.; (518) 286-1010; www.nrla.org.

Northeastern Loggers Association – May 11-12, equipment expo,Champlain Valley Exposition, Essex Junction, Vt.; (800) 318-7561; www.northernlogger.com.

Peak Auctioneering – May 12-13, LBM auction, Howard CountyFairgrounds, Baltimore, Md.; (800) 245-9690; peakauction.com.

Eastern Building Material Dealers Association – May 15, IDEASMid-Atlantic Trade Show, Valley Forge Convention Center, Kingof Prussia, Pa.; (800) 296-3278; www.ebmda.org.

Wallace Hardware – May 15-17, spring market, GatlinburgConvention Center, Gatlinburg, Tn.; (800) 776-0976; www.wall-acehardware.com.

Northwestern Lumber Association – May 16, golf outing, Rhodes,Ia.; (888) 544-6822; www.nlassn.org.

Retail Lumber Dealers Association of Maine – May 17, board &area meeting, Portland, Me.; (518) 286-1010; www.nrla.org.

Peak Auctioneering – May 19, LBM auction, Metrolina TradeshowExpo, Charlotte, N.C.; (800) 245-9690; www.peakauction.com.

Do it Best Corp. – May 19-21, spring market, Indiana ConventionCenter, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Kitchen Cabinet Manufacturers Association – May 20-23, annualconvention, Williamsburg Lodge, Williamsburg, Va.; (703) 264-1690; www.kcma.org.

Northeastern Retail Lumber Association – May 22-23, springleadership meeting, NRLA headquarters, Rensselear, N.Y.; (800)292-6752; www.nrla.org.

Mid-America Lumbermens Association – May 29-30, Arkansasspring meeting, Hot Springs, Ar.; (800) 747-6529; .themla.org.

Western New York Lumber Dealers Association – June 1, fishingderby, Buffalo Harbor, N.Y.; (518) 286-1010; www.nrla.org.

Massachusetts Retail Lumber Dealers Association – June 1-2,summer outing, Wequassett Resort, Chatham, Ma.; (518) 286-1010; www.nrla.org.

Composite Panel Assn. – June 3-5, spring meeting, FontainebleauMiami Beach, Miami Beach, Fl.; (301) 670-0604; pbmdf.com.

Forest Products Society – June 3-5, convention, Omni ShorehamHotel, Washington, D.C.; (608) 231-1361; www.forestprod.org.

Construction Suppliers Association – June 5, insight meeting,Gainesville, Ga.; (678) 674-1860; www.gocsa.com.

Lumber Dealers Association of Connecticut – June 6, golf outing,Tunxis Plantation, Farmington, N.Y.; (518) 286-1010; nrla.org.

New Hampshire Retail Lumber Association – June 7, golf outing,Lake Sunapee Country Club, New London, N.H.; (518) 286-1010;www.nrla.org.

Mid-America Lumbermens Assn. – June 8, Kansas SunflowerShootout, Hutchison, Ks.; (800) 747-6529; www.themla.org.

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

Northwestern Lumber Association – June 13, board meeting &golf outing, Lincoln, Ne.; (888) 544-6822; www.nlassn.org.

Eastern New York Lumber Dealers Association – June 14, golfouting, Orchard Creek, Altamont, N.Y.; (518) 286-1010; nrla.org.

United Hardware Distributing Co. – June 14-16, market,Minnneapolis Convention Center, Minnneapolis, Mn.; (763) 559-1800; www.unitedhardware.com.

TALK BackWe welcome your letters to the editor. Send comments to Fax

949-852-0231, [email protected], or BPD, 4500Campus Dr. #480, Newport Beach, Ca. 92660.

ID CHECKI just wanted to let you know that on page 28 of the

April BPD you list my age as 62. You flatter me. The ageis 85.John W. PorterPresidentHawkeye Lumber, Oskaloosa, Ia.

Retail Lumber Dealers Assn. of Maine – June 18, golf outing,Falmouth Country Club, Falmouth, Me.; (518) 286-1010; nrla.org.

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

Central N.Y. Retail Lumber Dealers Assn. – June 21, golf, WaldenOaks Country Club, Cortland, N.Y.; (518) 286-1010; nrla.org.

Long Island Lumber Assn. – June 21, golf outing, Timber PointGolf Course, Great River, N.Y.; (518) 286-1010; www.nrla.org.

Western New York Lumber Dealers Assn. – June 26, golf, BristolHarbour Resort, Canandaigua, N.Y.; (518) 286-1010; nrla.org.

Northern New York Lumber Dealers Association – June 27, golfouting, Ives Hill Country Club, Watertown, N.Y.; (518) 286-1010;www.nrla.org.

House-Hasson Hardware Co. – June 28-30, market, Duke EnergyCenter, Cincinnati, Oh.; (800) 333-0520; www.househasson.com.


ADVERTISERS IndexFor more information on advertisers, call them

directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........57AERT [www.aertinc.com].................................................................5Ainsworth [www.ainsworth.ca] ................................................30-31Anthony Forest Products [www.anthonyforest.com] .................48BC Shake & Shingle Assn. [www.bcshakeshingle.com] ...Cover IIBiewer Lumber [www.biewerselect.com].......................................3Blue Book Services [www.lumberbluebook.com] ......................51Boston Cedar [www.bostoncedar.com] .........................................7Boise Cascade [www.bcewp.com]..................................................4Cabot [www.cabotfactoryfinish.com] .............................................8Capital [www.capital-lumber.com]................................................48Cedar Creek Wholesale Inc. [www.cedarcreek.com] ..................50Chicago Suburban Lumber Sales .................................................33Crumpler Plastic Pipe [www.cpp-pipe.com] ................................61Distribution Management Systems Inc. [www.dmsi.com]..........41Eco Chemical [www.ecochemical.com] .......................................55Enduris [www.enduris.com] ..........................................................35Feldman Lumber [www.feldmanlumber.com]..............................54Fasco America [www.fascoamerica.com]....................................15Forest2Market [www.forest2market.com] ....................................37Great Southern Wood Preserving [www.yellawood.com] ..........27GRK Fasteners [www.grkfasteners.com]...........................Cover IIIHoover Treated Wood Products [www.frtw.com]........................28Idaho Forest Group [www.idahoforestgroup.com] .....................43Ipe Clip Co., The [www.ipeclip.com].............................................29Kleer Lumber [www.kleerlumber.com].........................................45LTG Inc. [www.lbrtimber.com] ......................................................52Mary’s River Lumber [www.marysriverlumber.com] ..................36McFarland Cascade [www.mcfarlandcascade.com] ...................17Nordic Engineered Wood Products [www.nordicewp.com].......39North American Wholesale Lumber Assn. [www.nawla.org] .....40Northeastern Lumber Manufacturers Assn. [www.nelma.org]...59Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....47Redwood Empire [www.redwoodemp.com] ........................Cover ISeaboard International Forest Products [www.sifp.com]...........52Simpson Strong-Tie [www.strongtie.com]...................................23Sunbelt [www.sunbeltracks.com] .................................................48Swanson Group Sales Co. [swansongroupinc.com]........Cover IVTigerDeck [www.tigerdeck.com] ...................................................44TMI Forest Products [www.tubafor.com] .....................................53Viance [www.treatedwood.com] ...................................................25Wahoo Decks [www.wahoodecks.com] .......................................32Warren Trask Co. [www.wtrask.com] ...........................................21Western Forest Products [www.westernforest.com] ..................11

What better way to thank both customers andvendors than hosting a free pancake breakfast, completewith sausage, coffee, and orange juice?Every year, McLendon Hardware, Renton, Wa.,

hosts a free breakfast on the first Saturday of May tokick off the chain’s annual Anniversary Sale. The eventalso publicizes its annual Mother’s Day plant sale.When Bruce Stevens joined the company 21 years

ago, to handle advertising and sales, each store in thechain hosted its own anniversary sale. It was his idea tocoordinate the event with a free breakfast at each store,and invite vendors to help underwrite the cost. In return,vendors get preferred placement in all sale announce-ments—printed circulars, plus TV, radio, and Internetads—and preferred product placement during the sale. “Our business is probably 90% retail and 10% con-

tractor,” says Stevens. “That’s why we don’t just caterto contractors.”He added that financial support from vendors covers

about 70% of the cost of hosting the event. That’s sig-nificant since more than 8,000 breakfasts were servedlast year at the chain’s six stores in Washington state.Although McLendon provides tables and chairs, a cater-ing company handles the cooking so employees canconcentrate on sales.This year’s breakfast marks the 86th anniversary of

McLendon’s, which plans to open a seventh location, inTacoma, as soon as a newly purchased property can beremodeled. The company also operates two DCs.

DURING THE EVENT, customers could spin a prize wheel to winproducts donated by vendors.

IDEA FileGriddle Me This...

We pack a lot of technology into every fastener we make. A lot. Take a good look at a GRK fastener … a really good look. You’ll notice the precision of our threads, the consistency of our coatings and the razor-sharp tips.

What you can’t see is the difference case-hardened steel makes and how much better our engineering is. You could just take our word for it … or you could try a few out. Maybe you can’t see the difference, but you can defi nitely feel it.

They’re that good … and you know what, they’ll make you better.

800.263.0463 grkfasteners .com

THIS IS ROCKET SCIENCE

©2012 GRK Fasteners

A D V E RTI S I N G

Job No.: 011-GRK-143 Color: 4 colorClient: GRK AE/CD/AD: Date: 3/21/12

Bleed: 8.5 x 11.125Trim: 8.25 x 10.875Live: 7 x 10

825 Wayzata Boulevard East - Wayzata, Minnesota 55391 p/ 952.563.6770 www.arnoldostrom.com

Title: Rocket Science w/ez codePublication: BPD MerchantInsertion: May 2012

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