Leaders of Lumber: Steve Sallah, CEO of LBM Advantage
LBM Advantage is an extension of its members’ lumber yards and takes on the challenges faced by its dealers. And with great power comes great responsibility.
“The pro chains and big box stores still crave the contractor business that has been the staple of the independent for a hundred years,” said Steve Sallah, CEO of LBM Advantage. “Our goal is to get our independents the pricing, terms and rebates that allow them to compete for traditional business and even expand into new markets, including multifamily, commercial, marine and others.”
The buying group has 1,100 member yards in 36 states with a retail presence of more than $8 billion annually. It is made up of two divisions — building products and forest products — roughly equal in size. Within its ranks are 550 members with more than 26,000 employees.
LBM Advantage CEO Steve Sallah.
“We have some unique cooperative challenges that any hardlines and LBM cooperative faces in an industry that is changing more rapidly than ever before — including the need to add members and expand to offset the reduced number of independent dealers,” Sallah explained. “Private equity and consolidation has accelerated a trend toward fewer independents.”
The concept of teamwork has played a major role in the success of LBM Advantage, and will continue to do so, Sallah said.
“Another challenge is to ask our dealers to think big — to act together as a segment that is larger than their individual footprints and markets,” he said. “By working together, and in spite of the fact that they compete locally, they have to act collaboratively to get their best share of the supply and pricing value from manufacturers.”
LBM Advantage embarked on a strategy — “National Power with Regional Expertise” — that optimizes offices in New York, Michigan, Louisiana, and — thanks to the recent merger with IBSA — North Carolina. Sallah describes this geographic footprint as a “differentiator” that has helped LBM Advantage increase retention and recruiting.
With the industry changing rapidly, LBM Advantage has embraced the concept of “Clarity of Purpose.” In addition to its mission statement which is to “Create a Competitive Advantage” for members by leveraging their collective power — the buying group has isolated a clarity of purpose message which is to Align Member Challenges with Vendor capability.
LBM Advantage has an eye on future as well. The buying group’s NextGen program is designed to help members retain and attract new and younger employees to their business. “Our channel is building homes that will last 200 years and raise a dozen families,” Sallah said. “What could be more important and more exciting than that?”
Editor’s Note: This story originally appeared in the June 2019 edition of HBSDealer.
“The pro chains and big box stores still crave the contractor business that has been the staple of the independent for a hundred years,” said Steve Sallah, CEO of LBM Advantage. “Our goal is to get our independents the pricing, terms and rebates that allow them to compete for traditional business and even expand into new markets, including multifamily, commercial, marine and others.”
The buying group has 1,100 member yards in 36 states with a retail presence of more than $8 billion annually. It is made up of two divisions — building products and forest products — roughly equal in size. Within its ranks are 550 members with more than 26,000 employees.
LBM Advantage CEO Steve Sallah.“We have some unique cooperative challenges that any hardlines and LBM cooperative faces in an industry that is changing more rapidly than ever before — including the need to add members and expand to offset the reduced number of independent dealers,” Sallah explained. “Private equity and consolidation has accelerated a trend toward fewer independents.”
The concept of teamwork has played a major role in the success of LBM Advantage, and will continue to do so, Sallah said.
“Another challenge is to ask our dealers to think big — to act together as a segment that is larger than their individual footprints and markets,” he said. “By working together, and in spite of the fact that they compete locally, they have to act collaboratively to get their best share of the supply and pricing value from manufacturers.”
LBM Advantage embarked on a strategy — “National Power with Regional Expertise” — that optimizes offices in New York, Michigan, Louisiana, and — thanks to the recent merger with IBSA — North Carolina. Sallah describes this geographic footprint as a “differentiator” that has helped LBM Advantage increase retention and recruiting.
With the industry changing rapidly, LBM Advantage has embraced the concept of “Clarity of Purpose.” In addition to its mission statement which is to “Create a Competitive Advantage” for members by leveraging their collective power — the buying group has isolated a clarity of purpose message which is to Align Member Challenges with Vendor capability.
“Our decision to move into territories outside of our legacy territories of the Northeast, Midwest and South and into the Southwest and West has been an important part of our growth and has helped us grow stronger in our relationships with our vendors, especially the national manufacturers and distributors,” Sallah says. “The Southwest and the West are growing in terms of population and there are very successful full-service independent lumber yards that have been underserved by LBM cooperatives.”
LBM Advantage has an eye on future as well. The buying group’s NextGen program is designed to help members retain and attract new and younger employees to their business. “Our channel is building homes that will last 200 years and raise a dozen families,” Sallah said. “What could be more important and more exciting than that?”
Editor’s Note: This story originally appeared in the June 2019 edition of HBSDealer.