As you can imagine, in the early days in 1935, LMC encountered plenty of difficulties. Uncertain of the LMC co-op model, wholesalers banded together against LMC. They told manufacturers, “If you do business with LMC, you don’t do business with us.” LMC had to really scout and dig to find purchasing opportunities. After hitting many roadblocks, LMC dangled a huge order of West Coast Fir and Hemlock in front of a few West Coast manufacturers and it was accepted by Long Bell Lumber. This was the beginning of a long-continuing relationship that endured for many years. Soon, the manufacturers and wholesalers saw the value in LMC and it became a force to be reckoned with.
LMC had done very well up until December 7th, 1941, when the attack on Pearl Harbor changed everything. By March 1942, the U.S government had instituted a very rigid system on goods, including lumber. Unless you had a priority designation of A-1 or AA-1, you didn’t have the slightest chance of buying lumber of any kind. Lumber yards were not given these priority designations as the government began taking all lumber directly from the mills. This nearly finished off the retail lumber business. “Not a stick to be found” they said.
By June 1942, LMC income barely met expenses and things were dire for its members’ lumber yards. That’s when Georgia Hardwood, predecessor of Georgia-Pacific, approached LMC with a novel idea. Georgia Harwood wanted to team up with LMC to set up large supply depots of lumber along the East Coast to support the U.S. Army Engineers. LMC members’ lumber yards would act as holding facilities and then quickly ship lumber to wherever the Army needed it. This was a better and faster way than waiting for the lumber to ship all the way from the mills. After receiving special permission from the government, 42 LMC dealers agreed to become distributing yards. Over the next 10 months, LMC dealers shipped 80,000,000 feet of lumber, contributed greatly to the war effort, and stayed afloat. It was new ideas, innovation and having the guts to try a new approach that really saved the day.
There have been economic upturns and downturns over the following decades. Big sales increases occurred from Westward expansion, sole affiliation and more recently, the housing booms of 2004, ’05 and ’06. Of course, right after that housing boom came the economic crisis of 2007, ‘08’ & ’09. LMC led the way again taking action to adapt to these sudden changes in the market.
From the early beginnings until today, one thing is evidently clear – the idea of building business together remains as strong as ever and will carry us through both good times and bad.
We are thankful for the strong foundation of dedicated partnerships between loyal stockholders, strategic suppliers, and professional staff. We know that by working together LMC and its stockholders can achieve what is impossible for others; no matter what obstacles we face.
