We have also seen recent reports from other organizations indicating the US housing market could very well be starting to look up!  For example, The U.S. Department of Housing and Urban Development  recently published their April 2012 Housing Scorecard and it indicated that it would take 6.3 months to sell the existing inventory of new homes.  This alone is not newsworthy.  However what is intriguing is that experts consider the housing market to be balanced when new home supply is at 6.0 months.  We are close!

We all know that the hardwood lumber business usually uses the domestic housing market as a key indicator of future success.  So maybe, just maybe, we are about to turn the corner!

We don’t think we will be seeing the return of the boom days immediately, but we do believe a slow moderate growing market is something we can expect over the course of the next 18 months.

What are you seeing in your market?  As an industry are we on an upswing yet?  Or are you experiencing an increase in remodeling in your region? We would like to hear your thoughts.

Referenced articles

• National Association of Home Builders Market Index
• USHUD April Scorecard

American Lumber
www.alumber.com/contact-us

Our team spoke to him for about 15 minutes reviewing his future sales projections, his current inventory levels, our stock list and the like.  In the end we identified about 10,000 board feet of available lumber he could use immediately. However, instead of placing an order, he decided to hold off and call back in a day or two to confirm.

And as you would expect, his call back wasn’t until several days later.  He had to deal
with a customer emergency, the weekend passed, and our available inventory changed.   It was back to “square one”.

So how do we best prevent this from happening?  We like to suggest to customers that
they “reserve today”.

After we design a load of hardwood lumber that makes sense, meets the customer’s need, and is priced right, we can package it up for delivery and place it on hold awaiting customer confirmation in 48 or 72 hours.

This type of approach is helpful for both us.  Our customers benefit by ensuring they receive that small amount of hard to find lumber, such as 12” and wider Poplar Prime,
and we receive a better idea of what type of green lumber we’ll need to order
in the days and weeks to come.

And if you purchase lumber in full truck load quantities on a regular basis, setting up a
regular product delivery schedule or program can help you manage your inventory
turns even more effectively.

Have you had any inventory replenishment issues lately?  If so, what were they?  We
would like to hear from you!

American Lumber
www.alumber.com/contact-us

An English dictionary lists a definition of rustic as “unfinished or roughly
finished wood”.

Hardwood lumber industry periodicals and writings sometimes compare
rustic grade to #2 Common or even #3 Common lumber.

If you were to talk to a hardwood flooring manufacturers their definition
of rustic would be something similar to lumber with color variation, absent of
severe defects, and inclusive of some milling imperfections.

Clear as mud, right?

The good thing is, as an industry, we do have a general understanding and
acceptance of what rustic grade is and many times it is treated as a custom or
proprietary grade level.

We have learned to realize “rustic Lumber” does differ amongst providers
and is certainly up to interpretation!

So we recommend a few things when talking “rustic”.

1. Get a definition so you know
2. View some pictures
3. Test a shipment to make sure it works for you

For the record, our Custom Grade Rustic hardwood lumber is:

• Structurally sound & full  of character
• Straight, square edged lumber
• No restriction on sound defects
• Minimal to no pith
• Tight knots – No open holes over ½ ”
• Limited wane

How do you define rustic grade?

Let us know if you want to see some of our samples!

American Lumber
www.alumber.com/contact-us

In the age of digital content and e-marketing, many experts have argued if tradeshows are still valuable marketing tools.   However, that is a debate for a different time.  If you are
still participating in tradeshows it is important to get the maximum value from your participation and that usually is derived from planning and preparation!

So here is a short checklist we like to use to ensure we are covering all the bases in our planning efforts.

Simple Tradeshow Checklist

• Determine your budget.
• Reserve & pay for the booth space on time.
• Ensure you are included in all tradeshow directory listings.
• Determine if tradeshow advertising is for you?
• Decide who is attending the show and who will be working the booth.
• Find out how your booth properties and graphics will get to the show and who will assemble them.
• Research if you need extra furniture or services from the tradeshow organizers?
• Make sure you have ample brochures to hand out?
• Decide what and if you are going to provide giveaways?
• Can you include product samples in the booth?
• Do you need to refresh any booth signs, posters, and graphics?
• Plan your break down, property returns, and any other post show issues.
• Follow up with all tradeshow leads with 72 hours of your return.

Do you have any good tradeshow tips? Let us know. We would love to hear from you!

American Lumber
www.alumber.com/contact-us

PS…. A few best practices documents we uncovered.

• Tradeshow marketing best practices:
• Tradeshow Exhibiting Tips & Best Practices

In the export markets, there seems to be more companies competing for ocean liner space.  Vessels are more crowded than any time in the recent past. Shipping lines are in an overbooked state and they are frequently rolling containers to future departing vessels. To say the least, delivery timeframes are being impacted, and rates continue to rise.

Within the USA it seems trucks are more difficult to find for various reasons, and rates are increasing as well as trucker diesel costs surge to a new high.

So what can you do to minimize the impact on business?  In short, be
prepared.

• Understand your customers lumber needs and help them pre-plan delivery schedules. Avoid “prompt” as much as possible.
• Maximize the quantity of lumber on each load. Make it a mixed delivery.  Fill all
  available space with something you know you could use in the future.
• Quote it right!  Make sure your quoted price for freight rates reflects today’s
  market conditions.  Even if you adjusted your rates as little as 60 days
  ago, take a fresh look and make sure you are in line with today’s reality.
• Stay informed. Become better educated on the issue and stay current with news,
  events, and supplier information.
• Over communicate.  Talk, email, text, whatever you can to suppliers and
  customers. This will only help you learn more, understand more, and make better
  decisions for your company.

We welcome your thoughts.  Contact us at any time!

American Lumber
www.alumber.com/contact-us

(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

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.

I asked them why they didn’t create better lumber for his customer. Why didn’t they stock lumber with more consistent color requirements specifically for cabinet manufacturing customers?

We all know random lumber is just that, random.  You get similar characteristics and grade standards but each board can be drastically different and have a significantly different value or usability when it comes to a manufacturer’s product.

In situations like this we suggest to our distribution customers that they work with their end users to develop a custom grade of lumber based on their specific needs.  The process is simple and we usually help.  We call it Custom Lumber Solutions.

In the past we have travelled with distribution company representatives to the end users facility to observe the existing production process.  Once we gain an understanding of exactly what type of lumber is acceptable we only bundle & ship the distributor what works for their customer. In essence, we co-create a specific lumber product for their needs.  In almost all instances it results in a happier customer and a new premium value lumber product the distributor can market to others in the area as well.

For example, a cabinet manufacturer needed to process clear one face poplar cabinet parts.  A consistently white board surface throughout the bundle was needed to accommodate the cabinetry parts that were to be stained in the finished product.  In the
end we developed and delivered a 4/4 white one face poplar product that specifically
worked for them.

Are there any cabinet customer’s in your region that could use better lumber?
Challenge us to help you find a solution.  We’ll develop it for you!

American Lumber

www.alumber.com/contact-us

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

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