U.S. Secretary of Agriculture urges builders to prioritize the use of wood. This is a very big deal, which is a result of a great deal of work by a coordinated group of industry groups in the U.S. and Canada over the past two years.  Just a few years ago, the wood products industry was on its heels, principally on the basis of its land management activities, under constant assault from powerful environmental groups.  Today the many environmental and energy benefits fo wood products have been officially sanctioned to the Secretary of Agriculture.  This type of policy decision is not made without the approval of the White House policy officials.

PulteGroup purchases 45 lots in Clarkston, Michigan, its first land purchase in state in four years; decreasing inventory in region fueling demand for homes, sales manager says PulteGroup has purchased lots in an upscale division of Clarkston, Michigan, from another homebuilder, its first land purchase in the state in four years, the Detroit Free Press reported June 13. In Southeast Michigan, there has so far been a net gain of 736 residential building permits issued through May compared with a net loss of 43 building permits during the same period last year. At this rate, according to the Detroit Free Press, this year will be the first positive gain for the new home building industry in Michigan since 2007. PulteGroup’s Michigan Sales Manager John Fabirkiewicz said the homebuilder will begin construction on a spec home and model in the next few weeks, which will comprise energy-efficient features. The homes in the Middlesboro region of the subdivision will range from 2,600 square feet to 3,700 square feet and will be priced at an estimated upper US$200,000s to upper US$300,000s, Fabirkiewicz said. Fabirkiewicz said that the decreasing inventory in the metro Detroit region is fueling the demand for homes. According to Chris Reetz, sales counselor for PulteGroup, the amount of inventory is “so low” that homes in the area will “sell in 15 to 20 days when they come on the market,” the Detroit Free Press reported. The primary source of this article is the Detroit Free Press, Detroit, Michigan, on June 13, 2011.

TIMES ARE TOUGH. Yet, many of us remember we’ve been through times like these before. Those of you who happen to hang on to industry publications can pick up just about any issue from the early 1980s and find it hard to believe many of the articles aren’t current. It just may be time to review some of the old-school strategies that got us through the last serious downturn. For example, Spring and Fall clinics were a marketing staple for just about every LBM dealer in our area thirty years ago. Although consumers were close to 40 percent of the customer mix back then, recent trends indicate focusing on the consumer might not be a bad idea, particularly when you’re promoting outdoor living products and projects. According to an SBI Report (Specialists in Business Information), the residential fence/deck/rail (FDR) market reached a record $11.9 billion in 2006. After falling in 2007, the market resumed an upward trend and is predicted to reach $11.8 billion by 2012. And according to dealers throughout our area, some of the biggest increases in sales over the last few years have been in the design-it and/or do-it-yourself market. One dealer reports, “We’ve seen a huge increase in the DIY market – particularly with decks. We’re seeing people staying in place and wanting to fix up the decks and outdoor spaces that they have, but they want to do it themselves and save money.” If all the market indicators are right, it’s time to dial back the clock and dust off some of the marketing strategies that worked in the past. As mentioned before, one of the biggies was the Spring Deck Clinic – and it worked. With a much wider (and sometimes overwhelming) variety of materials, fastening systems, decorative railings, posts and balusters, it’s quite likely potential customers would welcome the opportunity to see what’s available and talk with the “experts” in person. 

Adding the SIZZLE to OUTDOOR LIVING 

Planning a deck clinic is not difficult. Planning it well takes some thought. First, you need a place to display different options, then have staff on hand to explain the differences. If possible, invite the deck professionals you supply to be on hand to answer questions and offer advice. Says one dealer, “These days the market can be confusing to consumers with so many options. Our builders know where problems have occurred; they know what works and what doesn’t. We wouldn’t do a clinic without including them.” Be sure to invite all your good builder customers with deck experience to participate (i.e. the ones who pay on time and whose work you would recommend). If several respond, schedule them for different times of the day. Ask them to put together a book of their work (or poster, Powerpoint, whatever you choose) and have any and all available throughout the event – nothing sells outdoor living better an example of a beautiful project. And nothing beats a live demonstration, so if you can, do it. If you have the room, begin construction on an outdoor deck display the day of the clinic. Not only is it a “how-to” demo during the clinic, it can be a permanent on-going work in process that offers many benefits – potential customers can see, touch and actually walk on a variety of materials for direct comparison. Over the years you can literally show how products weather, fade, etc. On the day of the clinic you can demo different fastening systems; in the future you show how different fastening systems look. Don’t have the room? How about adding an entry deck and/or walkway to your entrance? Even a small outdoor deck display featuring three different materials (for example — treated wood, a composite and an exotic) shows customers how each will look after being exposed to weather. When planning your deck clinic, don’t forget to ask your suppliers for support. Most manufacturers offer a variety of display materials, from posters to fullsize deck vignettes. Just as important as displays are design services, whether computer-based or manual. If you have a CAD program, promote it as a service to design and create a list of materials. Designers at the Deck Store in Apple Valley, Minnesota, start creating their decks freehand using colored pencils. "We want to paint a picture in the customer’s head,” president Bob Heidenreich says. At this stage, he notes, the designer doesn’t even discuss materials. "We talk product later on, it doesn’t affect the design.” The full service, including a complete design, costs $300, which is credited to a deck purchase. If this is something you can offer, ask customers to bring in three photos to help with the design: views of the front and back of the home and a photo looking out from where the deck will be placed. That helps decide shape and where to focus key areas. Another “design” option is set up a computer terminal and access the Internet. Many of the major manufacturers offer online deck design programs. The goal is to get homeowners to think creatively and engage in a project. Other customers are motivated by a “deal.” There are several ways to skin that cat, but some are more clever than others. For example, consider adding a “Truckload Sale” to your clinic. Make arrangements with a local auto dealer to borrow a bright new pick-up, park it out front and fill it with deck lighting, deck cleaners, paints and stains, or even barbecue grills or grill accessories. Be sure the price is an attractive one.

Studies have shown that 10 percent off has little meaning to consumers -- many don’t consider it a “deal” until it’s at least a 15 to 20 percent discount. And finally, make your event festive. Set up some barbecues and offer free food and drinks. Have a special area for children and hire a face painter or a clown. Make it a family event – often both husband and wife make decisions on major purchases, so make it easy for them to come together. Special events are a good way to let customers know about your products, services and expertise, but they do require planning -- and patience. Keep in mind you may not sell much the day of the event, but you will see the benefit as much as several months later. As one dealer said, "Decks require a long-term approach. You have to educate customers and let them think about their options. If you do a good job, they’ll be back when the time comes.”  ~This is an Excerpt from an Article within the April/May Issue of the Building Products Connection, The Official Publication of Northwestern Building Products Association.

U.S. Housing Forecast-Single Family & Multifamily Only* Five of our eight forecasters lowered their outlook for 2011 and 2012. The average for 2011 was 715,000 last month and is now 682,000, a decline of 33,000.  Housing assumptions for 2011 remain the same: continued high levels of unsold homes, continued high levels of mortgage delinquencies and foreclosures, declining house prices at least through the first half of 2011, unemployment at near current levels throughout 2011 and weak consumer confidence.

* Manufactured home production is estimated at 51,000 for 2010, up from 50,000 in 2009. The forecast is 60,000 in 2011.

* FEA: Forecast Economic Advisors.

* NAR: National Assoc. of Realtors.

* RBC: Royal Bank of Canada

Information above was derived from APA's presentation: Housing Starts January, 2011.

FURTHER ECONOMIC DETAIL

U.S. Census Bureau: Housing Units Authorized by Building Permits more

FDIC (Federal Deposit Insurance Corporation): Banking and Economic Conditions in Each State more

Federal Motor Carrier Safety Administration Begins to Implement New Safety Regulations

Split Decision: The decking market is skewing towards high- and low-end products. 

The product itself may be flat, but the key shape in decking's future is a dumbbell. That's how decking experts predict the sales chart for their market will look in coming years. The bulge on one end will be taken up by low-cost wooden decking products, they say, while the bulge on the other is where you'll find much more expensive, plastics-based goods.

That evolution toward a dumbbell market is only one of several major trends that are taking place in the decking market. Among others:  more

Weekes - Michigan Division is now distributing Trex Outdoor Living Products.  These products are now in stock at our Michigan Distribution Center and available to our customers within our Michigan distribution area.  We will be stocking Transcend® decking and railing, Accents® decking, Escapes® decking and Designer Series Railing® products, fasteners and accessories.  Place your Trex order with us today by calling 800-442-8082!

Become a Certified Green Dealer!

Weekes - Michigan Division is now distributing iLevel engineered wood products.  iLevel is the market leader when it comes to structural frame products and design software programs, and we came to the conclusion that bringing their solutions into our set of offerings would provide you with easy access to the full range of building materials and services you need.  Weekes Forest Products – Michigan, Milwaukee and Green Bay Divisions will be offering the iLevel® engineered wood products, Edge Gold Premium Floor Panels, along with cutting edge design software - iLevel® Javelin®.  These framing solutions include the iLevel® TJ-Pro™ rated floor system, Microllam® laminated veneer lumber (LVL), TimberStrand® laminated strand lumber (LSL), TimberStrand® laminated strand lumber (LSL) rim board and stair stringers,  TimberStrand® laminated strand lumber (LSL) Tall Walls, Parallam® parallel strand lumber (PSL) beams and columns,  Treated Parallam® parallel strand lumber (PSL) beams, columns, and headers, iLevel® Shear Brace, and iLevel® Edge Gold oriented strand board (OSB) premium floor panels.  Michigan will also be offering architectural glulam beams and glulam garage door headers.  Our other Weekes divisions (Fargo, ND; St. Paul, MN; and Chicago, IL) will continue to sell their current engineered wood product lines - not iLevel products.

Weekes - Green Bay and Milwaukee Divisions are distributing iLevel engineered wood products.  iLevel is the market leader when it comes to structural frame products and design software programs, and we came to the conclusion that bringing their solutions into our set of offerings would provide you with easy access to the full range of building materials and services you need.  Weekes Forest Products – Milwaukee and Green Bay Divisions will be offering the iLevel® engineered wood products, Stucturwood PRS/Edge, and Gold Structurwood Underlayment, along with cutting edge design software, that you used to receive from the iLevel service center.  These framing solutions include TimberStrand® laminated strand lumber (LSL), Parallam® parallel strand lumber (PSL), Microllam® laminated veneer lumber (LVL), Structurwood® oriented strand board (OSB), iLevel Performance Tested lumber, and iLevel Javelin® design software.  All other Weekes divisions (Fargo, ND; St. Paul, MN; Chicago, IL; and Grand Rapids, MI) will continue to sell their current engineered wood product lines - not iLevel products.

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Shipping Overseas - MUST READ

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