Mile-High Hopes. When Builders. opened its location in Denver in 2008, it was taking a long shot in more ways than one. Some in the industry scratched their heads, asking why anyone would open a yard roughly 400 miles from its headquarters in this economy, never mind a sticks-only yard. The Denver market has seen tough times in recent years, with building permits down more than 75% since 2004.
But with 84 Lumber and Stock Building Supply downsizing and leaving the Denver market altogether, Myron Andersen’s son Chad Andersen saw an opening that couldn’t be ignored. Originally planning to run a gravel lot stocked with lumber and a trailer for office space, Builder.’s seized the opportunity to buy a former auto manufacturing plant in Denver’s industrial section.
“The market looked better two years ago, but it allowed us to come in and get great people because times were tougher,” notes Chad, who shares a birth year with Builders. and is the Denver operations director. “You build business for the long term, not the short term.”
That building process included people like Joe Stein along with sales reps Doug Sehr and Bryce Bornemeier in addition to plant manager Larry Northway. The latter three spent 10 years with 84 Lumber and Structural System Components (SCS), the Fremont, Neb.-based truss manufacturer that also vacated the Denver market.
With rail access, more than 11 acres of paved yard space, and 3,600 square-feet of office space, the property was a solid fit. Later it was decided that rather than tax the output of Builders.’ Grand Island truss facility, and after taking hundreds of miles’ worth of freight charges into consideration, why not put a truss plant in Denver, too.
When some plant workers heard Northway had departed 84 and joined Builders., some of his best workers came to the plant looking to switch sides. It allowed Northway to hire the best of the best, some of whom travel as much as 45 miles a day to work.
“This is my third career startup and it’s gone smoother and I’ve received more support than anywhere I’ve ever been before,” Northway says. “This company has not hesitated to give us the key tools to be successful.”
Small Is Beautiful. The Denver market is home to ProBuild, America’s biggest LBM operation, and Alpine Lumber, No. 25 on the 2009 ProSales 100. ProBuild is 100 times bigger than Builders. and Alpine is more than triple Builders’ size. But operations manager Stein believes that being relatively small is one of Builders.’ assets. “When you become too big, you lose that feeling for the people,” Stein explains.
“You need to have a take on what is going to help a guy run his business.
“There is very little paralysis by analysis,” Stein says. “We think and react quickly.”
Stein is a 32-year industry veteran and Denver native who began his career at age 19 with HM Woods, which later became a Payless Cashways store but kept the old banner. He also spent six years at 84 Lumber before joining Builders.
He likes Builders.’ ability to make decisions in a flash without corporate bureaucracy and red tape.
“We make sure all customer needs get taken care of, whether it’s the delivery being on time and in full, or products being stocked, or the training and safety of our staff,” Chad says.
“Fortunately, we’ve hired a lot of guys that don’t need a whole lot of training,” says Stein.
