April 14, 2010

LBM’s M&A Activity Heats Up; Three Deals in One Week

A trio of LBM-related purchases this past week indicates there are plenty of people who see opportunities in construction supply. Beacon Roofing Supply Inc. acquired Phoenix Sales Inc., a distributor of commercial roofing systems and related accessories with branches in Tampa, Orlando, Pompano, and Fort Myers, Fla., and sales of approximately $20 million in 2009. Meanwhile, Roofing Supply Group LLC bought the assets of Northwest Roofing Supply Inc.'s roofing division in Oklahoma City and Lawton, Okla. And Economy Lumber Co. acquired the Oakland, Calif., branch of Piedmont Lumber & Mill Co.
More on Beacon
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More on Economy Lumber
ProSales’ Deals Articles
ProSales’ Deals Database

Home Star Bill Slated for Introduction in House

Several House members planned this afternoon to introduce legislation creating Home Star, a measure designed to spur employment by giving tax credits for energy retrofits of homes. The bill was to be unveiled at a news conference featuring Reps. Edward Markey, D-Mass.; Peter Welch, D-Vt.; Vern Ehlers, R-Mich.; and Dennis Cardoza, D-Calif. In addition, National Lumber and Building Material Dealers Association president Michael O'Brien was slated to speak at the news conference. That’s a possible sign that the group's specific concerns about Home Star--a program it generally supports--have been resolved.
Story

Steady Growth in Residential Construction, Upkeep Spending Forecast Thru '14

Expenditures for residential building construction and improvements nationwide will rise between 6% and 16% per year through 2014, climbing in constant dollar value from $274.57 billion this year to $416.01 billion in 2014, the management consultant and investment banker FMI Corp. predicts.
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NLBMDA Presses EPA To Delay Lead Rule; EPA Says It's 'On Target'

The National Lumber and Building Material Dealers Association urged the Environmental Protection Agency to delay the April 22 launch date of a rule designed to reduce the spread of dust from lead-based paint during renovations of older homes. NLBMDA says there hasn't been enough proper preparation to implement the rule, but the EPA said it is "on target" for an April 22 start.
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How To Buy Lumber Today

The lumber market has changed, but that doesn't mean you should change your buying style, ProSales online columnist Wally Roderick says. “Three years ago, we could buy a little high and not worry about it because business was booming and we could turn our inventory fast enough to move out the high-cost stock. Most of us don't have that luxury today,” he says. “A truckload of lumber that used to last two weeks may be here for two months now. So how do we deal with the problem? I say: keep doing business as usual.”
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Myers Opens MD Yard; VT Facility Changes Hands

John H. Myers & Son of York, Pa., opened a lumberyard in Aberdeen, Md., its first location in the Bay State. Meanwhile, a Vermont TV station reported that the owner of Britton's Lumber Landscape & Feed in Woodstock, Vt., sold his facility to Bethel Mills so that he can run for the U.S. Senate.
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ProSales’ List of Facility Openings

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Rader's Edge: Three Options Equals Three Points

“Too often in our businesses, we are attracted to providing the lowest-price solutions for a customer in order to make the sale,” says Chris Rader, the author of ProSales’ “Rader’s Edge” online column. “Today I want to introduce you to choices. I want to present you with a sales technique that will not only help you land more sales, but land higher margins and gross profit dollars.”
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Urban Core Growing Faster Than Outer 'Burbs

Smart growth proponents have long predicted that the ever-greater expansion of suburbia would one day reach its limit, prompting a renewed interest in central city living. Now “Residential Construction Trends in America’s Metropolitan Regions," a new report from the Environmental Protection Agency, suggests that this trend is well under way, with residential permits in downtown areas and close-in suburbs more than doubling since 2000 in 26 of the nation's largest metro regions. (BUILDER)
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Americans More Cautious About Homeownership

A new Fannie Mae survey of renters and homeowners about homeownership offers both good and bad news for builders waiting for a housing rebound. On the positive side, 70% of those interviewed believe that buying a home is one of the safest investments they can make. But responses to other questions indicate they are showing increased cautiousness, regardless of whether they rent, own their homes outright, or have a mortgage. (BUILDER)
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WebbThreads

• Best Lumber & Building Center in Mesquite, Nev., plans to close its doors by May 31 if it doesn’t find a buyer. In the meantime, it’s going to hold a liquidation sale. Story
• George L. Throop, whose father's animal feed and coal store grew into the George L. Throop Co., a Pasadena, Calif., building-supply mainstay, died Sunday. He was 86. Story
• First it was Woodstock. Now New York State’s Curtis Lumber is holding Pet-a-Palooza, a pet adoption day. The event will take place Saturday, June 19, at all 22 Curtis locations in the Empire State and Vermont.
• Tri-State Forest Products of Springfield, Ohio, opened a service center n Saginaw, Mich. The facility—its fifth—will help to better serve Tri-State’s customers in Central, Eastern, and Upper Michigan.
• Highland Enterprise Lumber of Hillsboro, Ohio, plans to close on Friday. It’s the second southwestern Ohio dealer to shut its doors recently; Builders Supply locked up its Washington Court House location a few weeks ago. (See ProSales’ list of facility closures.)
• Parksite promoted Tony Millhouse from regional sales manager to national director of sales and Steve Wyatt as director of national accounts.

Most writing about baseball teams describes how players wield the lumber—i.e. their baseball bats—but in Cleveland the construction supply metaphors stretch further. That’s because Ridgid has become the Official Tool of the Cleveland Indians. In addition, Ridgid has created a Jobsite Bar at Progressive Field, the Indians’ home stadium. “Our product development teams will have the chance to work closely with the Indians’ maintenance staff to try new tools and make their operations more efficient,” said Fred Pond, Ridgid’s president. And at the Jobsite Bar, before certain home games Ridgid staff will be on hand to demonstrate the latest in tool technology.

• Rosboro introduced the X-Beam, which it bills as the first full framing width, architectural appearance stock glulam. “The X-Beam allows distributors and retailers to stock one set of SKUs for exposed and concealed application; it also eliminates the extra jobsite labor of shimming to compensate for the width difference between traditional glulam and standard framing material,” the company says.
• Jeld-Wen Inc.’s board of directors elected Robert Turner, the company's vice chairman, executive vice president, and chief operating officer, as chairman of the board. Story
• ProSpec, Bonsal American’s brand of professionally specified products, introduced ProColor, a form of group designed to eliminate issues associated with typical portland cement-based grouts.
• Mediterranea launched the Sandal Wood collection of glazed porcelain tiles.
• CertainTeed introduced WeatherBoards Individual Shakes, fiber cement products “that feature the beauty of cedar shakes without the drawbacks of wood,” the company says.
• Ponderosa Building Materials Software said Lumbermens Merchandising Corp. has named it as an approved supplier.
.• Eldorado Stone appointed Brenda Harris as its vice president of sales. She had been director of national accounts.

Do you have a question, a tip, or a sage piece of wisdom? Feel free to contact ProSales' editor, Craig Webb, at cwebb@hanleywood.com.

And don't forget you can find previous ProSales Business Updates online!