Emerging Trends

Under Pressure: Pace of change quickens for wood treaters
By David Koenig
BPD-Building Products Digest
AFTER more than 15 years of ranking the Top 25 Pressure Treaters, this year BPD and The Merchant Magazine have decided, with the treating industry changing so quickly, that instead of looking back, we'll look forward-at what's new and what's ahead for wood preservers across the country. Today, we'll cover the South, East and Midwest, tomorrow the West.

Over the last several years, Great Southern Wood, Abbeville, Al., has produced more pressure treated wood than any other company in the nation. Founded in 1970, Great Southern now has nine plants strategically located across the South and Midwest. Best known for its YellaWood brand, MCQ-treated pine, it also offers N-Durz borate-treated products, FlameFreez fire retardant lumber and plywood, CCA-treated posts and poles for agricultural and saltwater applications, ACQ-treated wood, specialties, and TimberTech composite decking, railing and fencing. Services include water repellent treatments, KDAT, colorant, imports, exports and logistics through sister company Greenbush Logistics.
Last year brought many changes to Great Southern, from the retirement of executive v.p. Greg Rane in July to the acquisition of treating plants in Arkansas and Missouri from Curt Bean Lumber in December, expanding its footprint into the Midwest.
For the future, Rob Pongonis vowed that the company "remains committed to growth, expanding its product line, and providing lumber yards and building supply centers with timely, dependable service."

In addition to also treating over 1 billion bd. ft. annually, Universal Forest Products operates an industry-leading 23 treating plants. Its offerings include decking, balusters, railing, spindles, fencing, sill plates, fascia, lattice, and other treated lumber products. Treatments are ProWood Micro, borates, ACQ and CCA. Overall, UFPI has 90 locations across the U.S. and annual sales of $2.5 billion from four primary markets-d-i-y, industrial packaging and components, site-built construction, and manufactured housing. 
UFPI's diversity helped it remain strong in 2007. "Thanks to our balanced business model, we grew sales in three of our four markets (including d-i-y), despite the impact of the housing market crash on our business, on other markets, and on the economy in general," said Chris Fox. "We were very pleased with the success of our new ProWood Micro and look forward to continued market share gains with that product. We also were pleased to add new customers in 2007 by offering an outdoor living program that covers the gamut of tastes, budgets and styles-from treated wood to wood composite to glass and metals."
Looking forward, UFPI expects continued growth for ProWood Micro as well as its MicroShades wood colorant. "We are continually growing our overall d-i-y product portfolio by adding new products or new companies that make strategic sense for our overall growth," Fox said. "Additionally, we are opening a facility in Puerto Rico to serve the Caribbean and Bahamian d-i-y markets."

Cox Industries, Orangeburg, S.C., operates 11 locations participating in the production of pressure-treated wood products for residential, commercial, industrial and utility applications.
The company, according to Ken Panitt, "fared well in 2007 despite challenging economic conditions in the industry. Cox has a diversified product portfolio, so the health of our business is not completely tied to housing. Sales volumes for 2007 were about flat with prior year levels. While the soft housing market did affect our residential businesses, volumes were up in the industrial and manufacturing groups. Cox also benefited from the introduction of LifePine shakes and shingles in 2007. This new product offering has strong market potential and is expected to play a larger role in our sales mix in the months to come."
Cox recently completed construction of a new manufacturing and treating plant in Vance, Al. Cox Wood of Alabama, LLC is now producing products such as utility poles and piling used by utility companies, energy providers, and contractors, and can rapidly serve the Gulf Coast market. 
Its residential treating plants are currently in the process of converting to a new type of treatment, DuraPine with micronized technology, which, Panitt said, "combines the micronized advantages of better paint ability and improved compatibility with fasteners with guaranteed cell wall penetration from traditional copper amine. As an added bonus, the coloration of the new blend is distinctive from white wood with a color familiar to the old CCA treatment and it performs similarly to CCA in drying tests as well."

New South Wood Preserving, a division of Canfor, operates treating plants in Conway and Camden, S.C., capable of treating a combined 170 million bd. ft. annually. Both facilities can treat MCQ or ACQ, and offer a wide array of products, including boards, decking, dimension, timbers, fencing, balusters, landscape timbers, and specialties.
"Last year was a challenging year for everyone in the building industry," said George Layton. "Overall, our company experienced flat sales with margins slightly below targets. Both of our plants added MCQ treating capability during 2007, and that product has helped add new business."
New South is rolling out a series of initiatives in 2008. "We recently introduced GatorGuard, a new brand name associated with our Micronized copper treated lumber.  Our parent company, Canfor, has a long history of producing quality products for the building industry, and GatorGuard will proudly represent our brand of treated lumber products that is tough, resilient and one that always delivers." Also new this year are KDAT and fire retardant products.

Fortress Wood Products operates treating plants in Greensboro, Henderson, Elizabeth City, and Enfield, N.C., offering lumber, timbers, fire retardant, ACQ, micronized, CCA, and KDAT to the Southeast, Mid-Atlantic, and lower Northeast.
"Fortress is one of the few treaters to gain marketshare during 2007," said Jeff Kern, noting that the company has quadrupled in size over the last eight years. "We plan to continue growth through ongoing plant acquisition and business development activities."
Fortress recently completed construction of a new dry kiln, effectively doubling its FRTW and KDAT capacity. It also plans to purchase a fifth treating plant this year.

Rocky Top Building Products, Rocky Mount, Va., is a wholly owned subsidiary of The Franklin Group. Established in 1977 as treater Rocky Top Wood Preservers, the business has grown to three Northeastern distribution centers offering a wide variety of alternative wood products, including wood composites, plastic lumber, and EWP. 
"In a dynamic industry where demand is seasonal and varies on the economy, 2007 was a challenging year for all those in the building products industry," said Allison Perry. "Rocky Top concentrated on balancing the ever-changing needs of the consumer with the downtrodden economy. As the wood preservatives market continued to evolve with the introduction of a number of environmentally conscious products, Rocky Top evaluated its product offerings and now is agressively pursuing and developing a new micronized copper product."
Rocky Top is currently in the process of rolling out ProSelect micronized copper-azole treated wood. 

C.M. Tucker Lumber Co.'s treating plant in Pageland, S.C., has four cylinders, offering a full line of pressure treated materials, specialty wood products, industrial wood products, and heavy roof decking.
C.M. Tucker produces over 200 million bd. ft. of treated wood annually, and has been able to keep its sales to home centers steadier than it sales to pro builder suppliers.
As for what's new, said Ed List, "We have rebuilt our dry kilns and are now producing DBlaze interior fire retardant, sodium borate treatments, and have just begun to treate with Ecolife metal-free preservatives. We are also providing KDAT and ADAT lumber and treatment services."
In December, Culpeper's Culpeper, Va., facility became the first to offer Viance's Ecolife stablized weather resistant wood to the Southeast. The company is now adding Ecolife at its Columbia, S.C., plant, so it can be shipped throughout the Southeast.
"Ecolife significantly improves the weathering performance of preserved wood, which significantly reduces waste in the yard for retail lumberyards, while providing the homeowner the beauty of real wood with less maintenance," said David Anderson, general manager of the Columbia plant.

Coastal Treated Products, Weldon, N.C., operates five treating facilities in Florida, Pennsylvania, North Carolina, and West Virginia. Their products mix spans across agricultural fence posts, commodities, and fire retardant.
Despite slowing residential construction taking a bite out of its sales, Coastal is investing heavily in its treated business. Tom Evans said, "We are currently making the change to micronized products at most of our plants and plan to expand our fire retardant business in Oxford, Pa., with a second dry kiln. Oxford will go micronized on May 1, and the kiln should be up by June 1."

South-East Lumber Corp., Kernersville N.C., and sister company Brackett Brothers Corp., Morganton, N.C., treat with ACQ, in addition to supplying spruce framing, boards and patterns; yellow pine dimension, pine finish, and patterns; cedar patterns, dimension and boards; panel products; I-joists, and LVL.
Like all treaters, the company has been hurt by the housing crash. "We've seen cycles similar to this many times, but it's been a long time-if ever-that we've experienced one with this kind of endurance," Wayne Brackett said. "Keeping your relationships intact on both sides, buying and selling, should pay dividends later as we begin to emerge from this lingering downturn in the market.
"We'll continue with ACQ for now, but are ever mindful and always watching and listening to our customers as their needs change."

Madison Wood Preservers, Madison, Va., provides copper azole-treated southern pine products to the Northeast and Central markets. It also operates a large fence post operation supplying several sizes of CCA treated round posts.  
"Our company held fairly steady in 2007, and we hope to accomplish the same in the challenging economic times of 2008," said Michael Tucker. "We are treating with CA-C amine formula in 2008, which has lower copper levels than CA-B, yet still retains the familiar 'green' of treated lumber."

Columbus Lumber Co. operates a single-cylinder facility in Brookhaven, Ms., treating dimensional, small timbers, and decking products with MicroPro since January (for how the transition went, see sidebar below). 
The company benefitted from its prime location. "Our volume remained strong throughout the building season due to our location near the rebuilding areas of New Orleans and the Mississippi Coast," said Bonnie Young.

Biewer Lumber, St. Clair, Mi., operates three treating and distribution facilities and two mills. Biewer specializes in Select Cut appearance-grade lumber, Dricon FRTW, and Monarch composite decking/railing.
The company experienced a challenging year in 2007, battling a depressed lumber market, while transitioning to a micronized copper treatment process. 
This year, Biewer has relaunched its Select Cut appearance-grade lumber, introduced a new grooved composite board under Monarch's Exotics brand, and is completely rebuilding its sawmill in McBain, Mi.

Family-owned for 70 years, Robbins Manufacturing Co., Tampa, Fl., has been treating with Wolmanized brand products since 1953 and today has five plants in Florida, Georgia and North Carolina, offering CA-C, micronized CA-C, borate, and CCA.
Robbins' sales to pro dealers were down in 2007, reflecting "the continued downturn in residential home building," Bruce Palmer said. Looking ahead, "we've begun utilizing the micronized copper technology in our copper-azole treated wood, and it's now available in all of our markets."

Enjoying its 30th anniversary, Savannah Wood Preserving, Savannah, Ga., is primarily a TSO facility, with three cylinders offering five preservatives.
Since last spring, said Herb Guerry, "we have had a slight downturn in sales. Due, however, to the relatively healthy local economy and our diverse product line, we have not seen the fall experienced by some treaters. Business began to pick up again in early Febuary."
Guerry has high hopes for its latest addition for residential use, "BASF's European favorite, CX-A. We expect our CX-A TSO business to continue to increase in 2008, as well as that of our CCA, ACC, blue borate, and Crystal Clear colorless borates."

Founded in 1991, Deforest Wood Preserving, Bolton, Ms., currently treats with ACQ. The company held 2007 sales declines to 10% and in second quarter 2008 will introduce a "newer generation of preservatives, either MCQ or Ecolife," according to Frank James III.

(Part 2 continues tomorrow with updates on treaters in the West)

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