Building a Future for Distributors and Dealers of Building Products
January/February 2006 Volume 45, Issue 1
In the News
AAMA Board Votes to End Consolidation
The board of directors of the American Architectural Manufacturers Association (AAMA) has voted to suspend consolidation negotiations with the Window & Door Manufacturers Association (WDMA). The AAMA board also approved sending a letter addressed to the WDMA board outlining the reasons for the suspension of negotiations.
The letter was prompted by the airing of serious concerns by the WDMA consolidation team at the meeting held in Chicago on September 27th, according to a news release from AAMA. AAMA says that these concerns re-opened compromises on several issues that had been reached earlier in the summer.
After the July 27th meeting in Chicago, the AAMA consolidation team and board were encouraged by the progress reached on several key issues: supplier voting, the role and composition of the board and the selection of the chief executive of the combined association. Since then, according to AAMA, WDMA has sought to revisit these three compromises, and there have been major misunderstandings on the intent and scheduling of joint meetings planned for 2006, according to the release.
According to AAMA board chairperson John Brunett, “AAMA members expect the consolidation proposal to be presented at the spring meeting in late February. The negotiation process is well into its second year, and it will not be possible to present a proposal in the spring if these negotiation setbacks continue.”
The WDMA has responded by asking the AAMA to reconsider its withdrawal from negotiations.
Members of the WDMA and AAMA have worked objectively and diligently over the last 13 years, achieving industry-wide, continent-wide product standards—many times putting aside competitive differences, according to a release from WDMA.
“As an organization, WDMA is very disappointed to learn that AAMA wishes to discontinue current industry trade association consolidation talks, despite the progress made thus far,” said Chris Simpson, WDMA chairperson. “WDMA’s board and the consolidation team still strongly advocate the benefits of a consolidated, unified industry association for the window, door, skylight, curtainwall and storefront manufacturers. We believe that it is in the best interests of the majority of the members of both associations to continue our negotiations and therefore WDMA has asked AAMA’s board to reconsider its position to continue potential consolidation negotiations.”
MERGERS & ACQUISITIONS
Rosboro Acquires Weyerhaeuser Facility in Oregon
Rosboro, a leading glulam manufacturer located in Springfield, Ore., has purchased the Weyerhaeuser glulam manufacturing facility in Vaughn, Ore. Purchasing the Vaughn facility will allow Rosboro the opportunity to grow its market share by increasing its lines of distribution for its family of glulam products, according to Jim Enright, general sales manager.
“We are excited about this acquisition,” said Enright. “The purchase of the Vaughn plant is in line with Rosboro’s strategic growth objective and will further enhance our glulam product line.”
With the sale, Rosboro expects to grow its staff by approximately 100 employees.
According to Enright, all former Weyerhaeuser employees working at the Vaughn plant will be evaluated to determine which positions will fit into Rosboro’s production plan for the new site.
Endura Products Inc. Acquires FrameSaver
Endura Products Inc., headquartered in Greensboro, N.C., has announced the acquisition of FrameSaver, a Nacogdoches, Texas-based manufacturer of rot-resistant, moisture-resistant, wood door frames. FrameSaver offers entry, patio and garage door frames finger-jointed with a wood composite material made of recycled sawdust and virgin plastics.
“The acquisition of FrameSaver is a continuation of our goal of providing innovative products, solutions and services within the building products industry through internal growth and complementary acquisitions,” said Bruce Procton, president of Endura Products. “The combined offerings of Endura and FrameSaver improve our ability to give our customers, the builder and homeowners products which solve real-world problems relating to door unit performance. Last year, FrameSaver did $33 million in sales and will immediately be accretive to Endura.”
Endura’s vice president of operations, Kevin MacDonald, added, “The FrameSaver® technology complements Endura’s Force 5™ Door Systems. Our goal is to provide real-world door framing solutions for pre-hangers, builders and homeowners. Adding FrameSaver to Endura’s product mix enables us to reach that goal every day.”
Company executives at FrameSaver were also pleased with the agreement.
“The FrameSaver management team has been in this business a long time, and we are excited to see our hard work and ideas move to the next level. The combined product lines will provide excellent cost, marketing and product mix synergies,” said Rick Hagel, chief executive office for FrameSaver.
Terms of the acquisition were not disclosed.
Universal Forest Products and Trus Joist Team Up
Universal Forest Products Inc. of Grand Rapids, Mich., has announced that it will provide Trus Joist engineered wood products to its customers in the Southeastern United States.
Universal will cease production of its own products in that region and instead will provide Trus Joist’s Silent Floor® joists, as well as other Trus Joist products, to its builder customers.
Trus Joist, A Weyerhaeuser business based in Boise, Idaho, is a manufacturer and marketer of engineered lumber products. Universal Forest Products is a leading manufacturer and supplier of wood and wood-alternative products to four markets, including the site-built industry.
“Universal has long enjoyed a business relationship with Trus Joist and Weyerhaeuser,” said Universal president and chief operating officer Michael B. Glenn. “This new partnership will allow us to enhance our service and product offering to our growing client list in the Southeastern United States.”
Old Name is “Out the Window”
Mark Reasbeck, owner of Legend Windows for the West of Las Vegas, has announced that the company has a new name — Coyote Springs Window & Door.
Legend Windows was formed in April 1996 by Reasbeck, who has worked for other window distributors dating back to 1983. After spending eight years on Russell Road, the company moved into a new 9,200-square-foot facility at 8050 S. Arville #101 in early 2005.
“The new name reflects the direction I want to take my company,” said Reasbeck. “I literally want to move into the new town being built on the Lincoln/Clark County line-Coyote Springs.”
“I’ve seen the booms in Laughlin, Mesquite and Pahrump. The common thread is that initially Las Vegas will service these new communities, but as soon as a ‘local guy’ sets up shop, he usually can maintain the largest market share because he is right there in the community.
Coyote Springs Window & Door is unique in that it doesn’t sell vinyl windows in the desert.
“We have four brands of aluminum windows, can meet low budgets or stringent energy codes and even a high-end aluminum product for the seven-figure customs,” Reasbeck said.
Reasbeck is “The Window Guy” columnist for SHELTER magazine.
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