LUMBERYARDS

McCoy’s promotes new location managers

BY HBSDealer Staff

McCoy’s Building Supply has made two managerial promotions.

Joseph Martinez has been named store manager of McCoy’s Odessa location while Aaron Sherbino has been appointed manager of the pro dealer’s Orange, Texas branch.

Martinez began his career with McCoy’s five years ago on the sales floor of his hometown McCoy’s in Brownsville, Texas. He served as assistant manager at the Midland location for more than two years during the height of the oil boom in the Permian Basin. The company said it was in Midland where he embraced the company’s vision for serving the “Born-To-Build” customer. He also spent time as Assistant Manager in Weslaco before managing the company’s Hobbs, New Mexico, store.

 “Joseph made many great contributions to the Hobbs store during his tenure,” said McCoy’s Regional Manager Kevin McKeown. “I’m excited for him to return to the Odessa area and bring his enthusiasm to the store.”

“Our goal is to provide the best customer service around,” said Martinez. “I want our customers to feel like McCoy’s is a place where the staff is going to go above and beyond to make their project a success.”

Sherbino started his career with McCoy’s two years ago working as a cashier before joining the company’s management development program. He moved through the ranks quickly as assistant manager in Richwood, Pearland, before taking the reins of the Orange store.

“I’m really excited for this next step in my career. As an Assistant Manager, I asked a lot of questions and strived to learn as much as I could,” said Sherbino. “I’m ready to lead this team and get to know our customers in Orange. McCoy’s has a strong family atmosphere with friendly, hard-working employees dedicated to our customers.”

McCoy’s is one of the nation’s largest privately held building supply retailers in addition to selling farm and ranch supplies. Headquartered in San Marcos, Texas, McCoy’s motto is quality building products and services to its “Born-to-Build” customers since 1927. The company operates 87 stores and two millwork facilities in Texas, Oklahoma, Arkansas, Mississippi, and New Mexico. 

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NLBMDA provides softwood lumber dispute update

BY HBSDEALER Staff

The National Lumber and Building Materials Dealers Association (NLBMDA) gave its update regarding the softwood lumber dispute between the United States and Canada.

Ben Gann, NLBMDA vp of legislative and political affairs, presented the following about situation:

The U.S. International Trade Commission (ITC) on December 7 upheld the antidumping duties (AD) and countervailing duties (CVD) placed on softwood lumber imported from Canada to the U.S. The decision by the ITC follows the Department of Commerce’s announcement last month finalizing AD and CVD on Canadian softwood lumber.

Most Canadian firms will pay a combined AD/CVD rate of 20.83 percent. For the five companies (Canfor, J.D. Irving, Resolute, Tolko, and West Fraser) directly involved in the investigation, they will pay a combined rate that is different. Canfor will pay 22.13 percent, J.D. Irving will pay 9.92 percent, Resolute will pay 17.9 percent, Tolko will pay 22.07 percent, and West Fraser will pay 23.76 percent. Duties will not apply to softwood lumber harvested in the Atlantic Provinces of Newfoundland and Labrador, Nova Scotia, and Prince Edwards Island.

The Canadian government has responded on two fronts in the ongoing softwood lumber dispute. First, it challenged the countervailing duties (CVD) under Chapter 19 of the North American Free Trade Agreement (NAFTA) on November 14. Second, Canada opened a World Trade Organization (WTO) case against the U.S. regarding the duties on November 28.

NAFTA Chapter 19 panels decide if an antidumping or countervailing duty determination is in accordance with the applicable national law, rather than with NAFTA obligations. Thus, Chapter 19 panels principally serve a judicial function, rather than a NAFTA dispute settlement function. As part of the NAFTA renegotiation, the U.S. has proposed eliminating Chapter 19 and relying on domestic courts to hear disputes, a position Canada strongly opposes.

Canada’s case against the U.S under the World Trade Organization (WTO) dispute settlement system is different from the NAFTA process. Here, the Canadian government complaint focuses on the method used by the Commerce Department to calculate duty rates. The Commerce Department used a method known as “zeroing” that disregards negative dumping margins in calculations and increases the duty rates. The WTO has historically found the practice of zeroing to be a violation of the General Agreement on Tariffs and Trade (GATT).

Unlike with the NAFTA Chapter 19 case, the WTO case is a purely government-to-government dispute regarding the application of international trade agreement obligations, rather than a dispute involving private parties regarding the application of U.S. law.[1]

The litigation does not preclude the two countries coming together and reaching a new agreement. However, the last agreement reached in 2006 occurred four years after antidumping and countervailing duties were first imposed and litigation on those determinations had begun. In discussions with U.S. and Canadian trade officials, NLBMDA has stated that duties are a poor substitute for a long-term agreement that provides predictability and stability for softwood lumber supply and prices.

Lumber prices have increased over the past year in part because of the duties placed on Canadian softwood lumber imported to the U.S. The Random Lengths Framing Lumber Composite price is now $434 per thousand board feet, an increase of 21 percent over the past year, and the Random Lengths Structural Panel Composite price is now $427 per thousand board feet, an increase of 17 percent over the past year.

In 2016, imports of softwood lumber from Canada into the U.S. were valued at an estimated $5.66 billion. The Trump Administration has initiated 79 antidumping and countervailing duty investigations this year – a 65 percent increase from 48 in the previous year.

NLBMDA will continue to engage with the Department of Commerce, Canadian government officials, and Congress on the softwood lumber dispute in hopes of reaching a new agreement that does not put American lumber producers at a competitive disadvantage, unnecessarily restrict the availability of products, or increase the cost of housing to the detriment of prospective homebuyers and consumers.

 

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Western Forest Products acquiring operations from Hampton Lumber

BY Andy Carlo

Western Forest Products Inc. has entered into an agreement to acquire Hampton Lumber’s processing and distribution facility in Arlington, Wash.

The purchase price is $9 million and is expected to close in January 2018, Western Forest Products reported. The Vancouver, British Columbia-based company also said the operations are ideally suited for Western Forest Products central distribution needs with direct rail service — including close proximity to the company’s major U.S. markets.

“This acquisition is a natural fit for Western as it allows us to increase the production of targeted, finished products while also providing a centralized warehousing and distribution center to more effectively service our selected U.S. customers,” said Don Demens, president and CEO of Western Forest Products. “This asset in Washington State also strengthens our global competitiveness by positioning Western to mitigate the damaging effects of duties on our products destined for the U.S. market.”

Western Forest Products is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer.

Based in Portland, Ore., Hampton Lumber operates nine mills in Oregon, Washington and British Columbia. 

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