ASK THE BUILDER ABOUT TREATED WOOD Michael Beaudry

ASK THE BUILDER ABOUT TREATED WOOD Michael Beaudry Deck Builder, KOW/BTN Decks Exec. V. P. , NADRA 1

The Market: Deck Builders n n n Many builders who will also build decks A growing number of “full time” professional deck builders Major shifting from part-time deck builders to Professional Deck Builders n n n Archadeck, USA Hickory Decks, Canada Residential Contractors looking for professional deck builders for their projects. 2

The Good n n n n It does what it says it will. Its less expensive than other decking materials. It is abundant. Southern Yellow Pine – 3 Billion BD Ft used for decks – 40% of the market (Deck Builder March/April 2006 page 28) Better Homes & Gardens outdoor living study – 47% of respondents want a wood deck (Deck Builder March/April 2006 page 29) Deck additions provide a healthy return on homeowner’s investment, deck market is growing. 3

The Bad n n n n Wet wood Disintegration, splitting at end cuts Improperly stored prior to delivery Grades confusingly marked Poorly educated warehouse personnel Poorly educated builders Increasingly negative consumer perception 4

PT: Shrinking Market Share n Losing ground to: n n n n Composite Cedar Ipe Mahogany Plastics Vinyls Aluminums Glass …and most of all n concrete (pavers, EP Henry) 5

6

WHY IS THIS HAPPENING? Composite: Promoting it directly to the homeowner – selling attributes: beauty, comfort, safety, low maintenance. n Cedar/Ipe/Others: Promoting use, beauty and benefits of material directly to homeowners. …Pressure Treated Industry seems to be asleep at the wheel n 7

Notes from the LSU Treated Industry Analysis: 2004 n n "Twenty-three percent of respondents said that they stocked fiber-composite plastic decking in 2004. Of these, 86% said that, relative to 2003, they had somewhat or dramatically increased the volume of these products that they stocked. " "Perhaps the greatest threat to the competitiveness of treated wood in the building market comes from market penetration by treated wood alternatives. " 8

"With regard to sales, nearly 1/3 (31%) of shipments in 2004 was to end-users such as builders and contractors followed closely by national retail accounts (29%). Stocking distributors and wholesalers accounted for 17% and 14% of sales, respectively. " 9

Value Chain The “chain” of people, materials, activities and information, starting from an idea or need all the way to the final end user of a product or service. Consumers Deck Builders Home Builders Benefits Dealers Distributors Manufactures l l l Raw Material Suppliers l Costs Red: denotes Channel Captain Who is really your customer? Who’s needs are you trying to fulfill? Who’s needs should you be trying to fulfil? What would make each of them more successful? 10

VALUE CHAIN MAKE EACH LINK MORE SUCCESSFUL WITH: Raw Materials Suppliers Forums to get them in front of Manufacturers and downstream to understand industry needs and opportunities Manufacturers Driving code and specifications. Installation certification. Vision of future/industry. Drive adoption of product. Access to Pro deck builders Distributors Info on purchasing habits. Understand where the industry is heading. Relationships with dealers and key deckbuilders. Dealers Regional NADRA Chapters. Access to Pro deck builders Homebuilders Ability to drive need for more decks. Access to subcontractors. Tools for deck sales. Product promotion from manufacturers Deckbuilders Business education, skills, and assistance. Profitability tools, estimating forms, marketing tools, Insurance (health, workers comp). Consumers Professionalism, Quality deck (looks, functionality, safety). Design program. Guarantee, Payback analysis 11

Ad from Weatherbest: “Our products are made from a high quality composite that gives you the distinct look and feel of natural wood, with low maintenance, so you can spend more time enjoying your deck. ” “That means you can build your own backyard retreat with all of the qualities you love about traditional wood decks, but avoid the many of the hassles of having to maintain one” 12

From “Bob Villa’s” website: “High-End Deck Materials Eighty-five percent of all single-family homes have a deck or deck-like structure. The vast majority of these decks are made from pine and pressure-treated pine varieties. Many of these homes will replace that deck within ten years. High-end decking like cedar, redwood, and mahogany give homeowners beautiful long-lasting performance coupled with eyecatching beauty and elegance. ” 13

The Ugly Copper Alternative Pressure Treated/Fastener Compatibility n Critical Question of how long will a fastener resist corrosion when installed in copper alternative pressure treated wood? n n n Lack of Standard Testing of Fastener to Treated Wood Compatibility Testing Conclusions must take into account the effect of moisture exposure to the rate of decomposition Railing Breakaway Conditions n Currently being tested at: Washington University and Virginia Tech, among others. 14

The Corrosion Issue 15

n Code Conformance Issue n n Conformance of Codes not consistently enforced. Public safety officials lacking knowledge of applicable codes and regulations: n n n American Wood-Preservers Association (AWPA) International Building Code (IRC) Residential Building Code (RBC) State and local codes Codes themselves do not always consider newer materials in use today. 16

The Lawyers are circling n n Advertisements all over the web asking for clients with deck problems Several class action suits on their way. Choice is to be Proactive OR Reactive… 17

Now that I’ve bored you with what you already knew… Here is what we would like to do with support to make a difference… 18

19

NADRA Deck Safety Month - May n This year -- May 2006 n n n Promote deck safety and awareness Reduce number of injuries Future n n n Continue residential awareness program Expand to building code community Expand to professional inspection community 20

Pressure Treated Lumber can be a beautiful choice for a deck… 21

Consumers and Pro Deck Builders Need to see the Beautiful Truth… 22

Deck Industry and Wood Treaters Can Help Each Other n n Promote long term beauty, safety and comfort of Pressure treated products by way of public relations and advertising. Provide Pro Deck Builders with materials/incentives to sell PT decking 23

Some Suggestions… n n Provide beautiful brochures showing high end PT decks Provide pre-stained PT products n n Like mahogany is doing in conjunction with Cabot. Work with coating companies to develop lines of stain so PT that arrives on jobsites looking like rich exotic wood. Offer Awards for best PT deck built in 2006 and some runner ups. Be an advocate for the Deck Safety Program 24

Penofin ad: “Penofin's entire color line brings a beauty to pressure-treated wood previously not possible. “ 25

NADRA is the Voice of the decking industry…We can: n Disseminate information to the Pro Deck Builder via: n n Bimonthly Magazine (Professional Deck Builder Magazine) Newsletter and emails Website promotions Direct conduit to the end-user (deck builder and homeowner) 26

NADRA Certification Outline n Qualifications n n Professionalism Experience Education Levels n n CDRA: Certified Decking & Railing Applicator CDRF: Certified Decking and Railing Foreman CDRS: Certified Decking and Railing Salesperson CDRC: Certified Decking and Railing Company 27

Course #1 n Orientation to Occupational Safety & Health for workers n n Course designed for construction workers, foremen, superintendents, and Project Management. Qualifies for CDRA and CDRF designations. Scheduled to be initiated May 2006 Offered Regionally at Sponsoring Lumberyards 28

Benefits n n n MEDICAL INSURANCE PROGRAM TRAVEL RELATED DISCOUNTS LEAD GENERATION FROM NADRA WEBSITE FORUMS FOR MEMBERS 12 COMMITTEES REPRESENTING MEMBERS INTERESTS REPRESENTATION IN CODE PROCEDURES AT ASTM AND ICC LOCAL CHAPTER OPPORTUNITIES DECK SAFETY MONTH US/CANADIAN PROGRAM EDUCATION HELP DESK FOR MEMBERS AND GENERAL PUBLIC NETWORKING WITH THE BEST IN THE INDUSTRY 29

Builders, Suppliers, Manufacturers and Retailers working together… to provide a quality outdoor living experience for every home in America. It’s a beautiful thing. . . Our sincere thanks to AWPA, we look forward to working together in the years ahead. www. nadra. org 30