Pointless Projects

This is an article about a local lumber yard, and the
construction company which I work for.

Hayward Lumber forced to close its doors
Posted: Tuesday, Feb 12th, 2008
BY: Josh Petray 2-12-08

A slow down in the construction market has forced Hayward Lumber in Paso Robles to close its doors come March.

The family-owned business, located at 944 Pine St., has been in operation for more than five decades in Paso Robles. The store’s sellers will remain in place, and the business will remain committed to the Paso Robles area, said spokeswoman Suzanne Scattini, but the store will close its doors.

“We’re in a recession in the construction market, and we had to downsize,” she said.

She emphasized that Hayward Lumber will still service customers in the North County.

“We’re still going to be selling and taking care of our customers in the Paso Robles market,” she said. “The commitment is still there to the customers; the commitment is still there to Paso Robles.”

The last day of operation is slated for Saturday, March 1.

Meanwhile, Hayward Lumber is trying to move as much product and employees as it can to other facilities under the same name across the county. In an effort to liquidate, the store is currently advertising sales including 20 percent of hand tools, 30 percent of garden hoses and sprinklers and more, she said.

Hayward Lumber also operates at 236 Higuera St. in San Luis Obispo and 800 W. Bettaravia Road in Santa Maria, among numerous others statewide.

The business has a variety of stores in the Central Market and recently expanded into Bakersfield and Ventura.

According to its Web site, www.haywardlumber.com, is has been supplying products, services, and solutions to the construction market since 1919. The fourth-generation family-owned operation, Monterey-based Hayward Corporation has grown to now include seven lumberyards as well as seven Hayward Design Centers.

Scattini, who regularly visits the Paso Robles area including awards dinners at the Paso Robles Inn and a recent photo shoot at Downtown City Park, said the move was necessary to ensure the success of Hayward so that it can be there for the customers in Paso Robles.

“Hayward hasn’t gone anywhere,” she said. “The same sellers are going to be on the street serving people fromPaso Robles. We’re just in a different location. We have valued customers in Paso Robles.”

Long-term trends

While the trickle down effects of the recent downturn in the housing market is perhaps yet to be determined fully, other lumber and hardware suppliers across Paso Robles are starting to see its effects.

According to Ken Wallop, manager at Big Creek Lumber, 745 Riverside Ave. in Paso Robles, business has adjusted accordingly. For Wallop, who has worked at the yard for more than 20 years, it’s nothing new.

“Our sales are down like most companies that are in the building materials business,” he said. “We’ve been through these cycles before, so we know how to react with the experience that we have.”

Diversification across the market calls for construction, remodeling, decks, fences and a lot more, and is key when it comes to survival for Big Creek Lumber, Wallop said. The situation locally for building materials suppliers isn’t quite as bad as in places like the Central Valley and Sacramento, where construction has ground to a near halt, he said.

“We’re cautiously optimistic,” he said.

Jeff Martin, a salesperson at Weyrick Supply, 626 North Main St. in Templeton, said both customers and contractors “have real concerns,” and the store has seen a relative slowdown in customers.

“It’s definitely affected everybody who is in the construction business and the lumber supply business,” he said. “That’s no surprise to anybody. There’s a concern on everybody’s part. Looking into the crystal ball, nobody knows how long it’s going to be.”

Weyrick Lumber Company, meanwhile, has plans to expand its business and recently acquired Gang-Nail Truss Co., Inc. based out of Visalia–described as a pioneer in the component industry.

“We’re a solid company, we’re going to be here for longevity,” Martin said.

Jim Shepard, owner of James V. Shepard Company, a Paso Robles-based contracting business specializing in custom homes and remodels, patronizes numerous local suppliers including Hayward Lumber.

“It’s disappointing when you see someone in the area that long close,” he said.

According to Shepard, his company just finished the best year it’s had in terms of gross sales. However, “the forward outlook is not as good,” he said.

One way James V. Shepard Company diversified its portfolio was with the addition of remodels to its line about seven years ago, he said. It’s proven positive for the business.

“We’ve been growing in our remodel business,” Shepard said. “It’s a significant portion of our business.”

Shepard pointed to a trend perhaps catching on with local contractors as an overall effort to boost competitiveness.

“We maintain that competitiveness by computerizing our purchasing,” he said. “We watch the quotes come in, and if they vary from job to job, than we might get a second or third [bid].”

Having gone through three recessions in the market, Shepard said one way to endure is to adapt — and that means thinking creatively about diversification.

When the market slows the best thing Shepard said he’s found is to “refocus the business and do new things.”

“One of the things that we have learned in the last three recessions that we were in is that the last thing you want to do is stand still,” he said. “Everyone who is in construction in this area has taken a hard look at how they can save their business.”

In that regard, Shepard recently landed the San Luis Obispo County dealership for Capital Steel Industries. The steel building industry is slated to grow 10 percent in 2008, he said.

The company will immediately begin to offer steel buildings for the wine industry and equestrian uses, Shepard said. Because of its unique relationship with Capital Steel, the company will be able to offer buildings supplied by the largest company in the industry at preferred prices and with a 50-year warranty, he said.

The company will concurrently offer design and general contracting services as is currently done on custom homes, he said. Aside from custom homes, Shepard highlighted what he described as the “worst hit,” the recent housing crunch — spec builders. Most everybody in the spec building market is experiencing a drastic downturn, he said.

Having built a number of successful subdivisions in the Paso Robles area, Shepard said the “unintended consequences” of lending “without that kind of check and balance” that’s created a “drastically overbuilt market.”

For Shepard and others grappling the effects of the recent housing downturn, there is hope for the future.

“Economics dictates what you do in the business,” he said. “This is going to be a deep downturn in business, but the guys who are coming out of it will be the ones who are controlling their overhead the best.”