Matheus lumbers through recessions by expanding

Matheus lumbers through
recessions by expanding
By STEVE WILHELM
STAFF WRITER
ROLLING OUT: A line of trucks carries
Matheus Lumber products.
quiring Bison Forest Products, an existing distributor “that mirrors Matheus
exactly,” Powell said. Matheus’ other facilities are in Vancouver and Ellensburg,
Wash., and Idaho.
And the company is now actively bidding to supply some of the major “shovel
ready” infrastructure jobs that are being funded through the federal stimulus
package.
“ With the new stimulus package,
Were it not for its success supplying
building materials for the Grand Coulee
Dam in the depths of the Great Depression, Matheus Lumber Co. Inc. would
not be the company it is today.
JUNE
19-25, 2009
Then headquartered in Seattle, the
company supplied tons of lumber used
by the Public Works Administration to
build the forms for most of the monumental concrete pours that made up the
By STEVE WILHELM
dam.
Today, in the midst
another ecoSTAFF of
WRITER
nomic downturn, Matheus retains its vitality
justit because
retains
the business
Were
not for itits
success
supplying building
model — for
selling
to big companies
doing
materials
the Grand
Coulee Dam
in the depths
bigthe
jobs
— itDepression,
establishedMatheus
77 years Lumber
ago.
of
Great
Co. Inc.
If a not
person
into itthe
company’s
would
be thewalks
company
is today.
5 -acre headquarters lumber yard in
Then headquartered in Seattle, the company supWoodinville looking for a few two-byplied
of lumber
usedsay
by no,”
the Public
Works Adminfours,tons
“We’d
probably
said comistration
to build Gary
the forms
for most of the monumenpany President
Powell.
tal As
concrete
pours that
made up the
he explains
his company
on dam.
a MonToday,
in thein
midst
another economic
day
morning
his of
Woodinville
office, downturn,
aMatheus
p r o - retains its
cvitality
e s s i o just
n because
of
la rge the busiit retains
t ness
r u c model
k s , — selleach lading
to
big compaen w it h
hnies
u doing
g e big jobs
77
s—
t aitcestablished
ks
oyears
f l uago.
mperson walks
berIf a nd
concreteinto the company’s
g5-acre
r a d e headquarply
terswood,lumberyard
rumble
out of the
yard heading
for conin
Woodinville
looking
for a few
two-by-fours,
struction sites around the region.
“We’d
probably
say
no,”
said
company
“That is one of our businesses, sup- President
Gary
Powell.
plying
concrete forms, panels and lumAsto
hethe
explains
companyjobs,”
on a Monday
ber,
majorhis
concrete
Powell morning
in
his Woodinville
a procession
of of
large trucks,
said.
“You cannotoffice,
believe
the amount
timber
andwith
panels
goes
into those
each
laden
hugethat
stacks
of lumber
and concretekind of
jobs.” rumble out of the yard heading for
grade
plywood,
While Matheus’
business
is down
construction
sites around
the region.
about
in the
recession,
from concrete
“That20ispercent
one of our
businesses,
supplying
$88.3 panels
million
2008 revenues,
forms,
andinlumber,
to the majorPowconcrete jobs,”
ell said his company is doing far better
Powell
said. “You
believe
the amount of timber
than yards
that cannot
specialize
in supplying
and
that goes market.
into those kind of jobs.”
the panels
home-building
While
is down
In factMatheus’
Matheusbusiness
is utilizing
the about
down20 percent
in
the recession,
from $88.3
in 2008
economy
to expand,
andmillion
on April
15 revenues,
openedsaid
its newest
distribution
center,
Powell
his company
is doing
far inbetter than
San Marcos, Texas.
Matheus made the expansion by ac-
Matheus lumbers through recessions by expanding
MATHEUS LUMBER PHOTO
See MATHEUS | 37
ROLLING OUT: A line of trucks carries
Matheus Lumber products.
One is a plant. The other a drop of water.
Neither can thrive without the other. It’s a basic cycle of
prosperity, and one that defines how we’ve viewed banking
relationships for over 107 years. Because we understand that
our success depends upon yours. And that great things
happen when people get together face to face.
MATHEUS LUMBER PHOTO
yards that specialize in supplying the home-building
products that work; they know what they’re buying
market.
and they know what they’re selling.”
In fact Matheus is utilizing the down economy to
Now in its third generation of ownership, Matheus
expand, and on April 15 opened its newest distribu- has always avoided becoming a sawmill, focusing
tion center, in San Marcos, Texas. Matheus made the instead on the needs of customers, and tapping the
expansion by acquiring Bison Forest Products, an
production of a variety of sawmills to do that.
existing distributor “that mirrors Matheus exactly,”
It’s only since 1986 that Matheus has even had
Powell said.
a lumberyard of its own, a step the company deMatheus’ other facilities are in Vancouver and
cided to take as the number of sawmills declined
Ellensburg, Wash., and Idaho.
in Washington.
And the company is now actively bidding to
Fewer sawmills meant more specialization for
supply some of the major “shovel ready” infrastruc- each of them, and Matheus executives decided they
ture jobs that are being funded through the federal
had to build their own inventory to guarantee to
stimulus package.
regular customers they’d never be caught short of a
“With the new stimulus package, highway widening, needed product.
bridges, overpasses, all requiring concrete forms and
Prior to 1986 there were 1,000 to 1,500 sawmills in
timbers, those are the kind of things Matheus would
the region, and Matheus could more dependably find
MATHEUS
be looking at and supplying,” Powell said. “The stim- a mill that could cut and ship to order on short notice,
LUMBER
M ATHEUSCO. INC.
ulus package is starting to take hold now, the contracts
Powell said.
are coming out and we’re bidding for them. As it goes
Now, the company deals with just 150 mills across
L
UMBER C O. I NC .
Founded: 1932
forward in the next four to five months, Matheus will get
the United States, Powell said. It makes about one
Founded:Charles
1932
our share.”
quarter of its deliveries directly from the mills, rather
Founder:
William Matheus
Matheus’ focus on supplying wood for the industrial
than from its own yards.
Founder: Charles
William Matheus
Location:
Woodinville
construction market has helped the company develop
At the core of the company’s customer service is a
a
unique
skill
base,
said
Joe
Arena,
vice
president
of
version
of just-in-time inventory.
2008
revenue:
$88.3M
Location:
Woodinville
U.S. sales and a principal at Westlam Industries Ltd.,
Construction companies don’t store materials on job
Advice:
“There’s
no way to recession-proof
in Vancouver, B.C.
sites; they depend on suppliers to bring them what
2008 revenue:
$88.3M
Matheus is the sole Washington supplier for
they need every day.
your business. One of the few things you can
Westlam’s line of plywood for concrete forms, Arena
“Our story has pretty much always been the same,”
“There’srecession
no way to recessiondo Advice:
to minimize
is not to overexproof your business. One of the few things
said. He added that Westlam offers such a variety of
Powell said. “Our business philosophy is customer
tend
company
inrecession
the good
times, and
youyour
can do
to minimize
is not
Commercial
s Private
s Wealth
products, tailored
for specificBanking
needs, that very
devel- Banking
service and trying
to deliver Management
these products on a timely
save
a little bityour
of company
money. in
You
manage oped understanding is needed to sell them.
to overextend
the should
good
basis, which can get rather difficult. There’s so many
times,
and saveas
a little
bit of was
money.
Seattle
206.667.8989
Bellevue
425.709.5500
your
business
if there
a You
recession all
“The reason they’re
in a business
for a hundred s people
and traffic,
it can be a real chore to get under
should manage your business as if there
years
is
they
provide
customers
with
the
product
that’s
that
crane
at
11
a.m.
sometimes.”
thewas
time.”
a recession all the time.”
going to work for the intended job,” he said. “They’re
— Gary Powell, president
Member
FDIC
WATRUST.COM
— Gary Powell, president
[email protected] | 206.876.5427
a responsible
supplier, responsible in that they pick
Reprinted for web use with permission from the Puget Sound Business Journal. ©2009, all rights reserved. Reprinted by Scoop ReprintSource 1-800-767-3263.