July, 2006

Jackson Lumber, Lawrence MA

Jackson Lumber looks to its New Hampshire neighbors to grow a thriving contractor business.

By Noelle Creamer

When Jackson Lumber, of Lawrence, Mass., built a new manufacturing facility in Raymond, N.H., it was a win-win proposition. The company got a great tract of land at an affordable price and access to an excellent highway system that would allow it to deliver products easily in Massachusetts, New Hampshire and Maine. The state of New Hampshire benefits as well, adding 75 jobs initially to the local economy, collecting property taxes on the new facility and welcoming an established company.

Celebrating 60 Years

Al Torrisi, second-generation owner of Jackson Lumber, looks forward to the opportunities across the state line as he celebrates Jackson Lumber’s 60th anniversary.

The company was founded in 1946 by Torrisi’s father on Jackson Street in Lawrence, Mass. Al Torrisi worked summers at the lumberyard growing up and, after college, decided to pursue the opportunities the family business offered. Today, the third generation is active in the business, including Torrisi’s two sons and his nephew.

Jackson Lumber is still headquartered in Lawrence, and has a second location in Haverhill, Mass., which was an acquisition. Both are full-line yards serving a customer base of about 65% new-home builders. The remainder of the business is divided among remodelers, large commercial builders, consumers and some industrial customers. The company employs 175 people with an outside sales force of 18 working contractor/commercial accounts.

Jackson Lumber’s revenues were $73 million last year. The company has enjoyed 7 to 8 years of growth, but Torrisi anticipates this year will not produce any growth, mostly because of the turn in the housing market. "The housing market is pretty quiet here,” he says. "We had some flooding in our area this spring that may bring additional remodeling business, but we’ll have to see.”

Offering the Whole Package

The company, like many LBM dealers, recognizes that excellent customer service is essential in today’s market. "We do a very, very good job with service by offering a whole package,” says Torrisi. "We have wonderful estimators and good salespeople. We offer value-added services like custom millwork that really distinguishes homes for builders. Our ability to consult with our builder customers and provide both insight and products sets us apart.”

Excellent staff is essential for the level of service provided by Jackson Lumber. Torrisi describes the workforce in the area as "pretty steady.” He adds, "We spend extra time with new salesmen, exposing them to all areas of the business before they have an opportunity to represent the company to customers.” Employees are trained in-house, especially in the winter months when business is slow. They participate in educational programs offered by the NRLA, and Jackson Lumber hosts speakers on specific topics—from sales techniques to new products—to educate the team.

Current challenges for the company include the downturn in the housing market and unpredictable costs, including those related to health care for the company’s employees, the cost of utilities and natural gas, and the price of fuel. Jackson Lumber has employed technology in its battle to stay ahead of these costs, using a proprietary computer system to make orders complete, schedule efficient deliveries and respond quickly to problems. The company has two people dedicated to information technology, a web site and an intranet to communicate among locations. It uses e-mail extensively.

Jackson Lumber claims several advantages in negotiating current challenges. "Being a member of LMC is a great advantage for us,” Torrisi says. "We can negotiate very competitive terms and prices with suppliers all over the country.”

Additionally, the company’s strategy is well defined. "About 14 years ago we zeroed in our focus: contractor sales. We were coming out of a recession in the Northeast. This was a very good decision for us.”

Growing Across the Border

Jackson Lumber celebrated the grand opening of the new facility in Raymond, N.H. in April. The facility includes a contractor yard, shipping products out to New Hampshire. The company manufactures millwork, assembles door units and builds windows at the site as well. Two buildings on site are devoted to millwork and a large, rack-supported, undercover area shelters lumber.

With headquarters near the New Hampshire state line the company saw New Hampshire as a growth market. "Expanding south toward Boston would be very expensive,” says Torrisi. "Land is considerably less expensive in New Hampshire and there is access to a terrific highway system.”

New Hampshire welcomed Jackson Lumber, which worked with economic development officials in the state to find the land it needed. The company took advantage of a low-cost loan offered through the state, but did not receive any tax incentives; Jackson pays property tax as usual.

Torrisi has advice for dealers looking to expand. "Most states will welcome businesses from other states,” he says. "Call the economic development people in the state in which you’d like to locate. Show them your plans; be up-front with them.” Torrisi worked closely with the town manager in Raymond and the planning board. "They made it an enjoyable process,” he says. Jackson Lumber is now hiring employees from the greater Raymond area.

The celebration in April, which included the company’s annual contractor day, featured an appearance by New Hampshire Gov. John Lynch. . "Gov. Lynch has a background in furniture manufacturing and is big on business,” explains Torrisi. Nearly 500 people, including customers, local business people and officials were invited to the baseball-themed party. "Everyone had a great time,” says Torrisi.

This grand opening was an example of the special events Jackson Lumber stages to maintain strong relationships with customers. Besides the annual contractor expo, the company takes builders to the International Builders’ Show each year, and hosts cookouts at job sites. "It’s important to say ‘thank you’ to customers and to stay in their face,” says Torrisi. "We’re as close to our customers as any company is, I think.”

As the dust settles on the new location, Torrisi knows the future holds many opportunities. "The third generation of the family is very active in the company,” Torrisi says. "They use technology well and study problems from a different perspective than I do. They have big plans for Jackson Lumber.”

NOELLE CREAMER is a contributing editor for the magazine with more than 10 years experience covering the LBM industry.