American View

(This post is full of interesting links to check out!)

Many people have stated that the modest remodeling activity in the United States has  helped keep the hardwood lumber industry somewhat afloat in recent years as we wait for the new build market return.  In most instances, we would have to agree.  Maybe 2012 will be another year for that.  So how do you capitalize on the home remodeling activity in your area?

Recently the Wall Street Journal reported spending on home remodeling rose 3.3% in 2011 and is forecasted to grow 5.7% in 2012.

The National Association of Homebuilders has published their Remodeling Market Index
report indicating home remodeling has returned to its highest levels since
the fourth quarter of 2006.

And Remodeling Magazine states that remodeling in 304 of 366 metropolitan markets is forecasted to grow in 2012 compared to just 22 declining.

So how do you capitalize on this modest trend?  Be clear on who is remodeling
and make sure you have the products on hand when they need it.

That might mean having the right ripped-to-width hardwood lumber in stock for the local flooring company to easily produce blanks.  It might mean having the proper color spec on hand to create a new series of hardwood cabinet doors.  It might even mean having access to new inventories of imported species for those special home paneling or ceiling projects.

We have already started to see customer stocking up on select White Oak rips
and specialty sorts on items such as Cherry and Red Oak.  Maybe they are
preparing for a special remodeling movement in their community.

What have you seen?  Any best practices to share.  We welcome your comments. Let us know!

PS… one last comment…. This is an interesting study on who is remodeling that we found on www.remodeling.hw.net definitely worth the read.

American Lumber
www.alumber.com/contact-us

If you are like most other companies you are looking for 2012 to be a better year than 2011.  You will probably be looking to attract more customers and expand the business you have with existing business.  Sounds great!  What is your marketing plan to do so?

What is that famous Albert Einstein saying?  “The definition of insanity is doing the same thing over and over again and expecting different results.” Don’t let it apply here.

The marketplace, the economy,and the industry are different than they were a year ago.  Companies, customers, contacts, and competitors have changed.  So should your
marketing plan.

Everyone has their own unique way to build and execute their marketing plan.
I am sure you do as well.  But here are a few key components and ideas that we incorporate in our thinking that might be helpful to you.

1. Determine who your targets are.  Get specific. Don’t just think of it as an industry segment or a geographic area.  Develop the list of known buyers in your region and make them the focus of your marketing plan.

2. Identify the best ways to reach those targets.  Direct mail, tradeshows, email
marketing, social media, internet marketing, sales calls, association involvement, advertising, etc.  These are all marketing tactics and programs that should be analyzed and considered for use to reach your target audience.

3. Refine your message. Emphasize your unique selling or value proposition.
Differentiate yourself from the crowd and focus on a message that conveys why people should buy from you and use it in all your marketing efforts.

4. Resource your marketing plan.  Marketing needs people, time, money, and effort.  Be sure to make is someone’s priority or responsibility and tool that person to succeed just like you would your dispatch or yard manager.

5. Integrate your marketing.  Make sure your marketing tactics work together and reinforce the market message and call to action you want customers and prospects to take.  You don’t want any one effort to be a silo or your potential customers to be confused on what you want them to do.

Lastly, we have had success in using a simple one page marketing planning calendar to keep us aligned and on schedule after we build our plan.  If you would like a copy, email us at inquiry@alumber.com and we’ll be sure to share a copy with you.

If you have any best practices you can share pertaining to your marketing efforts, please let us know!

American Lumber

Contact us.

Not everyone needs the exact same type or size of hardwood lumber.  Some companies have a higher sensitivity to different things.  For example, what some companies like about getting a random width bundle could be perceived as problematic for those that only want a certain width.  What some value in color consistency others couldn’t care less about.  Or what some companies like about long clear lower grade boards others would never accept for their production processes.  The trick, we find, is designing what lumber bundles work best for which type of customer applications and only shipping customers what they want or can use.  That’s how we help customers receive better lumber.  That’s what we mean by developing a custom grade.

Almost all hardwood buyers can get better lumber.  The way we approach this is co-designing shipments of lumber that work best for our customer’s specific needs.  When we do this our manufacturing customers increase productivity, decrease waste, and reduce their overall cost to produce finished products.   Likewise, our distribution customers can do the same thing by stocking specifically designed lumber bundles that help their customers be more successful.

Co-creating a custom grade is not hard.  We have had success approaching it with a simple and proven five step process.  The process comes down to:

• Observing
• Recommending
• Testing
• Analyzing, and
• Following up.

We would be happy to show you how.

What would better lumber look like to you?  What type of lumber solution are you looking for? Maybe we can help.  Let us know.  We are up for the challenge!

American Lumber

www.alumber.com/contact-us

Let us be one of the first to wish you a Happy New Year!

2012 could be a very promising twelve months for us in the hardwood lumber
industry.  Early indications are the U.S. housing industry is poised to see some improvement based on recent reports. (Call us optimists!)

So how are you going to grow your sales in 2012?  How are you going to differentiate yourself from your competitors?  How are you going to compete more effectively?  What are you going to do differently that will make you more successful?

One idea could be to order, inventory, and use better lumber.  Think about it.  What would it mean to your business if you had the exact width moulder blanks in inventory ready to be shaped at a moment’s notice?  Or what if you had different sized hardwood lumber packs on the shelf ready to be picked up without costly breakdown and re-bundling charges?  How would your business improve if you stopped receiving random lumber and only received lumber that matched your, (or your customers), preferred specifications?  In most instances it would mean more revenue or reduced costs.

What do you need from your suppliers to increase your revenues or reduce
your costs?  What would you need to be more successful?  Whatever it is, let us
know.  Challenge us to find something unique that helps your hardwood lumber business.

Challenge us! We’re up for it!

Happy New Year.

American Lumber

www.alumber.com/contact-us

When was the last time you looked at Sapele? If it has been a while, perhaps now is a good time!

Recently, it has been reported that Sapele imports to the United States are up 7% over last year.  And that’s in a market that can be generally characterized as flat at best.  No surprise to us as we have seen similar trends throughout 2011 as well.

Native to Africa, Sapele is usually requested because of its hardness and strength.  It has also been gaining popularity in the use of musical instruments of late due to its appealing sound qualities and attractive appearance.

From what we can tell our customers are ordering Sapele in many instances as a substitute to African Mahogany.  It is known to be easy to machine and glue and its beautiful red/brown likeness and overall lumber consistency makes it a perfect fit for numerous applications.  We have customers using it on an increasing basis for high end doors, window frames, cabinetry, and flooring.  And when quarter-sawn its grain pattern is really visually enhanced.

So have you considered Sapele recently? What examples or stories can you share?  If you haven’t, ask us about it.  Our inventories range from 4/4” to 16/4” thicknesses and in lengths ranging from 8’ to 16’ and are available for prompt shipment.

American Lumber

www.alumber.com/contact-us

With only a few weeks left in the 2011 calendar year, some of us are probably starting to plan for 2012.  What type of market will it be?  Will the economic conditions change drastically? What new services will your customers require? How will you grow your revenue?

One issue many analyze it whether or not they will enhance their customer acquisition tactics or focus on improving customer retention.  We probably have all heard that it is up to three times as costly to attract a new customer as it is to retain an existing one.  However, the task of growing a business is extremely difficult without bringing on board new customers.  So what is a leader to do?  Of course, the obvious question is both. The trick is to understand to what degree you resource each and how effectively you execute against your intended strategy.

From our perspective there is no right or wrong answer.  Each business is unique, each market is different, and each set of circumstances varies.  However, here is a list of ideas we find helpful to consider.

 Customer Acquisition

• Target Audience: Do you have a specific list of target accounts you want to serve?
• Resource & Staffing: Have you allocated enough time, people, and resources to proactively conduct selling activities?
• Marketing: Is your advertising & marketing strategy integrated into all aspects of your business?
• Metrics & Measurement: Have you established clear, measurable, and attainable goals and are you measuring your results against them regularly?

Customer Retention

• Top Accounts: Are you focusing daily on your top 20% of customers?
• Service Improvements: Have you improved your service to your customers in the last year?
• Relationship Building: When was the last time you visited your customers face to face?
• Reactivation:Have you proactively tried to re-initiate selling with your bottom 50% of accounts?

What other thoughts do you have? What has worked for you in the past?  Let us know.  We would like to hear from you.

American Lumber Company

There is no doubt that one of the most important ingredients in a successfully delivered load of lumber is timely and professional trucking.  As the trucking industry struggles with some major issues these days it leads us to wonder how we as a hardwood lumber industry should act.

One of the largest issues the transportation industry is dealing with these days is a shortage of qualified drivers.  According to a recent American Transportation Research Institute study prepared for the American Trucking Association, the driver shortage issue was classified as one of the top three issues facing the industry today.

This contributes to the constant struggle we have pertaining to increased delivery intervals as well as the possibly of anticipated freight rates increases experts estimate to be about 6% this year. 

So what are those in the hardwood lumber industry to do to offset these challenges?

Two things we recommend to our customers are to consider developing a customized inventory management program with your suppliers and research ways to get more out of the lumber you purchase.

When we develop a hardwood lumber inventory management program with our customers we analyze how they can integrate programs such as planned bookings, standing appointments, or customer managed inventory programs to enhance their operations.

When we work with customers to research how they can get more out of the lumber they order we usually end us analyzing their specific production process and co-creating a lumber solution that reduces their waste and helps them receive more usable surface area per board which is another way to offset increasing transportation costs.

Consistent, dependable, and affordable on-time supply is critical to all of our success.  These are just a few things we help our customers with.  Do you have any other ideas that have worked for you?  Let us know! And let us know if we can help you in anyway.

American Lumber

www.alumber.com/contact-us