April, 2008

Opportunity on Deck

Even in the worst of times, opportunities do exist. A major one-deck projects-is the focus of this month's issue.

By Rick Schumacher

As we all know, it’s really ugly out there. Yet even in the worst of times—which economists and the media would have us believe it is—opportunities do exist.

Despite what the headlines say, I’m convinced that it’s not the end of the world as we know it. Instead, it’s simply at the low point in our economy’s ongoing cycle. Even at its lowest point, it’s important to remember that the cycle is always moving forward.

I’ve been in the lumber/building material business for 18 years now. Like many of you, I’ve seen a number of housing downturns and industry crises. Remember the double-digit mortgage interest rates of the 1980s, and the recession of the early 1990s, etc.? And let us not forget the shutdown of our national forests sparked by the Northern spotted owl controversy, and the spikes in lumber pricing from the battle over Canadian softwood lumber. This isn’t the first rough spot, nor will it be the last.

The key to success then, now, and in the future, is a three-step process: Know that opportunities exist; find them, and own them. With production homebuilding mostly on hold, and custom homebuilding healthy in isolated pockets, the answer lies in well-defined niches. Bright spots include remodeling, green building and—the focus of this month’s issue: decks.

Though fewer people are building new homes, the deck market continues to grow. And why not? There are few home improvements that add so dramatically to a family’s quality of life. With summer just around the corner, the deck market is poised to heat up.

Typically, our monthly InDepth feature article delivers the market insights from a handful of leading manufacturers. Considering the explosion in decking products, we’ve decided instead to give you an overview of the newest, hottest products in this everchanging market. Beginning on page 62, you’ll see 30 different decking products, from a broad range of leading manufacturers. If you’re thinking of changing up your product mix, this is a great place to start. Whether you’re looking at next-generation treated wood products, ongoing innovations in composite decking, or the fast-growing PVC decking category, you’re holding the only magazine that delivers in-depth product information every single month.

As a controlled-circulation (i.e., free to qualified subscribers) magazine that relies on advertising revenues, LBM Journal faces many of the same challenges as you. With the housing market down, many manufacturers have had to slash advertising budgets. Despite this very tough environment, LBM Journal is actually growing—in large part, by gaining market share away from competing national magazines that serve pro-dealers. Just as LBM dealers can thrive in tough times via quality products, top-shelf service, and on-time deliveries, LBM Journal is growing by delivering more articles, by a more-experienced editorial team, to more subscribers, for less money.

Know that opportunities exist; find them, and own them. And when you do, write to me at Rick@LBMJournal.com. We’d love to share your story.