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A little late night shopping

BY HBSDEALER Staff

A Home Depot store in Concord, N.H., reopened late on Jan. 24 after a pick-up truck drove through the wall of a local residence and landed in the living room. According to the story in the Union Leader, the driver of the pick-up lost control of the vehicle on a 90-degree curve in the road and plowed completely through the living room wall. The occupants of the home — a man and his 7-year-old twin daughters — escaped injury. But they needed to repair the damage enough to get through the night.

“We needed to get thing buttoned up so the house wouldn’t freeze,” said homeowner Bill Tanguay. “We went out to see if we could get our hands on insulation and a thermostat to keep heat running. Home Depot already closed, but they opened up, let us in and helped us out. The manager there made sure we had everything we needed."

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Market Recap: RISI Crow’s Construction Materials Cost Index

BY HBSDEALER Staff

 

A price index of lumber and panels used in actual construction for Jan. 28, 2011 

*Western – regional species perimeter foundation; Southern – regional species slab construction. 

Crow’s Market Recap — A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow’s Weekly Market Report.

LUMBER: On the North American front, SPF lumber sales were slow. Producers in the East struggled to keep prices at prior levels. In the West, producers felt little pressure to discount #2&Btr, but quotes were lowered in line with market levels. Sales activity in the Southern Pine lumber market was sluggish. Dimension price increases in the Central and East zones eased and discounts were more apparent, while prices on the Westside deteriorated $10 to $20. Demand for Coastal species lumber trickled into mills for much of the week, with a slight uptick reported at midweek. Any increase in buyer participation was not enough to keep several prices from dropping $10 to $15.Inclement weather now hampers retail takeaway, creating a market demand that is "kinda quiet," according to one Inland species lumber manager. The drag on demand has not created much mill-level reaction, however, and prices hold within recently reported ranges. Ponderosa Pine Mldg&Btr continues to hold. Tightest of the Ponderosa items is #2&Btr Shop. Prices have not changed on #3 or P99. Reports indicate that 4/4 Shop is tight. Activity for #3 Common is picking up, with both domestic and offshore destinations voicing interest. However, #2 Common is clearly more active than #3, and all established price ranges continue unchanged. Idaho White Pine reports show little change in the overall demand for the product and no change in price levels. Prices of Eastern White Pine boards are stable, and good tallies can bring a little premium. Most Radiata Pine producers in both New Zealand and Chile have increased their participation in markets other than the United States. Western Red Cedar mills were willing to negotiate price when it fit, but the weather’s hold on buying had more to do with market activity than price.

PANELS: Weakness in the Western Fir plywood market remained in place, increasing pressure on producers to make key decisions revolving around plywood pricing and production costs. Southern Pine plywood producers waited out another week without lowering prices for the most part, despite light sales activity. The OSB price picture is a little confused, but most areas reflect at least a $10-drop from last week’s numbers. Although Canadian plywood mill files are still past the end of January, and although most mills remain unchanged in their approach to prices, the market is clearly softer and more competitive. Particleboard and MDF prices in the South have generally taken on a feeling of consensus among producers, with "about five dollars," being added to most items. 

Source: RISI’s Crow’s Weekly Market Report

For more on RISI, click here.

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For Wolf, the evolution continues

BY HBSDEALER Staff

York, Pa.-based Wolf — formerly known as Wolf Distributing Co. — has been through more than its fair share of game-changing transformations since Adam Wolf founded the company in 1843. One of the biggest was the brainchild of Adam’s son, who literally bet the house — and the canal-and-barge-centric business — on the future of what was then a newfangled communication system called the railroad. 


The company’s current chairman and CEO, Tom Wolf, lives in the same house his great-great-grandfather built by the tracks (in a town called Mount Wolf). But that doesn’t mean Wolf is set in tradition. The head of the $200 million company is spearheading its latest transformation — from a two-step distribution model to something he calls “a breed apart.”


In his “New Declaration for Independents,” Wolf wrote that the two-step model served Wolf well over the years, but it forced them to serve two masters: manufacturers and dealers. The new Wolf serves only one, he said: the dealer.


Home Channel News talked to Wolf about the company’s new strategy.



Home Channel News: Is there a recognized term for your new business model? Can we call it a “modified two-stepper?”


Tom Wolf: We’re referring to ourselves as more of a sourcing company.


HCN: Can you elaborate on that?



Wolf: The contrast we draw is between a two-step distribution model where you take products that are manufactured by a branded company and then go to the dealer market and sell those same products to those customers. And the issue there really is that you have two sets of customers. We want to be in a position to cater unambiguously to our dealer customers. So if they say they need this and we agree with that need, then we can go out and source that from a company that’s willing to make it. We’re big enough to be able to interest manufacturers to do that. So we want to take that unique size capability — the capability that comes because of our size — and translate that into a real responsiveness to the needs of our dealer customers.


HCN: How radical is this approach?


Wolf: The model has been around a long time; it just hasn’t been — at least I haven’t seen it — within our industry. If you look at basically what Dell Computers does, Dell doesn’t really manufacture, they source things from all over the world. I think some of the big retail firms [like] Costco obviously [do] that. So, we’re basically taking our scale, our size, and translating that into an ability to source products that we see that our customers actually want. 


HCN: Is this going to require a change in the skill set of your people top to bottom?


Wolf: We’ve added people. And we will accent probably different skill sets. We actually have been doing private label for some time now. We have a private label in hardware. We do private labeling of vanity tops. We’ve done that for maybe 10 years now. We have a private-label kitchen cabinet that we’ve been selling for a couple of years, the Europa line. So we already have the capacity to do that, and we’re going to do more of it. The extent that we do more of it would probably [involve] reorienting some of our staff to do that rather than simply purchase material that’s out there on the market. 


HCN: What’s your biggest product category?


Wolf: Kitchen cabinets.


HCN: Do you see that changing?


Wolf: I would think we might see in the next year or two a slight increase in building product sales. But it will probably be fairly equal.


HCN: You’re eyeing the Midwest for expansion. What are the challenges there to overcome?


Wolf: Well, the first barrier for a traditional two-step distributor to move is: Your vendor may or may not be interested in giving you that territory. They have other relationships, so one of the things with going with our own products is it frees us to make our own decisions on expansion. So if we’re beyond the constraint of our vendors’ inclinations on that, then we’re left with the relationships that are already in place. Are the products that we’re selling competitive and relevant to the market? How fast can we find good employees and good facilities? That kind of thing. But that’s something that I think would be a lot easier than trying to convince a recalcitrant vendor to give us a new territory.



HCN: It’s difficult to make changes to any business. What’s the secret?


Wolf: The reason we’ve lasted 167 years is because we’ve made changes, and I think this is along those lines. A lot of times people say “167 years — you obviously [have done] things the same way for all that time.” Well, actually, the reason we’ve been around that long is because every once in a while we’ve blown up the model and reoriented ourselves, and that’s what we’re doing here.

 

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