Here for 60 More…

Mike Johnson, Cox CEO

Next year will mark 60 years since the earliest days of what is now Cox Industries. What are the rules to insure a business, a marriage or even a life will last for 60 years? Do you think when my Grandmother’s father, Arthur Powell, decided to begin preserving wood in Columbia, South Carolina, in 1950, he pulled out the handbook and drafted the rules?

Of course not, in fact, little did he know his fledgling business would expand to Orangeburg in 1952 and two years later God would call him home. When Grandad and Great Uncle Coco moved to Orangeburg to stake their claim in this world, little did they know the business would have family members two generations later preserving their legacy.

In the latest edition of our company newsletter, we highlight our fifth strategy of “Sustainability”. When most of us hear the word, we think of recycling receptacles, the ‘Sustainable Forestry Initiative’, global warming or ‘Cap and Trade’ Legislation. In the vein of clarity, allow me to offer this definition, “providing stewardship to the world around you so that it is as good or better for future generations.” This stewardship certainly includes our environment, but it also includes so many other areas of humanity. For example, on Saturday, October 31st, we erected the wall on a Habitat for Humanity home that will forever improve the lives of three children. On an entirely different level, just a few weeks ago, we began a lean initiative program to save energy both improving our environment as well as securing jobs for the future. These examples probably do not seem, on the surface, how one would initially define ‘Sustainability.”

In the simplest form, when we drill down to the essence of decision-making, every decision is about the sustainability of one thing or another. It could be the life of a business, the preservation of humanity, the length of a marriage or one’s personal health and well-being.

There is no rulebook for this decision process. If there was, it would be thicker than the U.S. Tax Code and the proposed health care bill put together. It would be thicker than all the rule books ever written. As I see it, sustainability is about constantly preparing for the ever-changing rules that life presents us. Consider the difficulties of the last two years. The last two years have presented countless changes in our business, family and personal lives. We have faced trying economic events, political climate changes, shrinking retirement plans and untold internal stress. We are truly living in interesting times. Times in which decisions today will affect many future generations to come. This journey is yours. Reflect on the decisions you have made and take ownership in them. Now, prepare yourselves for the decisions you will have to make tomorrow and the next day.

Thanks to all of those that preceded us in ’sustaining’ Cox for 60 years. Thanks for 60 years of sustainable decisions. Thanks Great-Granddad Powell for setting us off on this great journey.

The Simple Answer is Sustainability…

Unfortunately the questions are a bit more complicated. What does it take to be a value to our community, our employees and our shareholders? What does it take for a company to open its’ doors and keep them open? What factor(s) weighs most heavily on the decisions we make as a company today and how do those decisions effect the next generation of associates, treatments, products and the environment?

Cox Industries has long been concerned about our impact on our communities and the environment and that concern has been seen not only in product and service innovations but in our relentless research into safer and more efficient ways to produce our products. Involvement with Green Globes, Green Guard and EPA WasteWise programs, products receiving the Good House Keeping Seal and Energy Star Ratings and our six decade long commitment to purchase wood from well managed Pine Plantations (recently documented by SFI and FSC certifications) are just the surface of our sustainability initiative.

But is it “Green”?
Let’s try to un-muddy the water a bit. First of all, “green” is a color. No more, no less. No doubt, by now, you may have heard of “green washing”. This is when a product or service is represented as something that is better for the environment than what is currently available. As of late there has been such a mass abuse of the term “green” it could be classified as pandemic. The true definition of whether something is sustainable or not is to measure equally a product’s or service’s impact on the environment, on society and on the bottom line. Our logo is “Green” our business is sustainable.

Formed in 2008, the Cox Industry’s Sustainability Advisory Panel is made up of university professors, philanthropists, conservationists and business Leaders coming together to help guide the decisions we make and lend a valuable outside perspective on the impact of those decisions on the environment, on society and on the bottom line.

For the communities that rely on us, as a responsible employer, sustainability means we are making the financial decisions that will keep us profitable for the years to come. Thus allowing us to increase our employee base, expand our product lines and make sure both remain strong contributors to the communities where our businesses operate and our employees live.

For our customers sustainability means we are supplying the most efficient and effective building materials available and we stand behind the commitments we make on service and quality. It also means we are up to date on current certifications and practices, which allows them to participate in sustainable building projects. But most importantly, sustainability means we stand with our customers to improve the products and services that will help them build their business.

For more information about the overall Cox Sustainability Initiative or any specific program, please don’t hesitate to contact us at 800-476-4401.

Cox Receives SFI and FSC Certifications

Cox Industries’ Residential Products Division recently received certifications through the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI).
“As part the Cox continued journey towards sustainability, these certifications dove-tail with the company’s concerns for the environment, for society and for financial stability”, said Michael Johnson, CEO. Ensuring better practices in the forestry and wood products industries protects not only the well being of our forests, but all of the livings creatures that depend on it. However the certifying agencies don’t stop there, in fact The FSC looks at how workers are treated and how they are paid. Even though certified wood is a little more expensive now, Cox believes, it isn’t nearly as expensive as it could be in the future without the proper control systems in place.
The Forest Stewardship Council (FSC) is an independent, non-governmental, not-for-profit organization established to promote the responsible management of the world’s forests. Established in 1993 as a response to concerns over global deforestation, FSC is widely regarded as one of the most important initiatives of the last decade to promote responsible forest management worldwide.
FSC is a certification system that provides internationally recognized standard-setting, trademark assurance and accreditation services to companies, organizations, and communities interested in responsible forestry. Being FSC certified shows that you comply with the highest social and environmental standards on the market. As public concern about the state of the world’s forests and timber resources increases, FSC provides you with a simple solution to complex environmental and social issues. FSC certification is most widely known for its ties to the U.S. Green Building Council’s LEED certification program for commercial construction.
The Sustainable Forestry Initiative (SFI) is an independent, non-profit organization responsible for maintaining, overseeing and improving a sustainable forestry certification program that is internationally recognized and among the largest in the world. The SFI Standard is based on principles and measures that promote sustainable forest management and consider all forest values. It includes unique fiber sourcing requirements promoting responsible forest management on all suppliers’ lands.
SFI is recognized as part of the National Green Building Standard which was developed by the International Code Council (ICC) and the National Association of Home Builders (NAHB). The National Green Building Standard is coordinated with ANSI (American National Standards Institute), which has been the administrator of the U.S. voluntary standardization system for more than 90 years.
“Whether addressing environmental concerns for personal reasons or needing points qualifications as part of a “green” building program, for residential or commercial construction, the new SFI and FSC certifications have better positioned Cox to help our customers reach their goals” said Keith Harris, VP Marketing.

www.coxwood.com

Open Letter to the Cox Dealer Family

In strategy role playing, both military and business, a “black swan” is a commonly used term for an event once thought impossible that actually happens. For example, have you ever thought through a scenario of a meteor hitting your place of business? What would you do? Why have you not worried about it? Well, a four year housing recession is not necessarily a “black swan,” but……

A four year recession!! Had there been a survey of lumber dealers in 2005 asking how they planned to prepare for the impending recession, what kind of responses would we have heard? I imagine we all would have responded somewhat similarly. While we might be facing a downturn in light of this incredible run we have all enjoyed, I would not be so pessimistic as to think we are on the verge of a global recession the likes of which only a handful of people in business today were around to witness. Had any of us forecasted the incredible speed of change we were facing, we would be sitting next to Nouriel Roubini on MSNBC as we speak.

Well, it has happened; we are knee deep in one of the most destructive economic events of our lifetime and, in fact, in the history of our United States of America. How will our nation recover? While I do not believe the answer is billions of dollars in reckless spending, I do believe the best action we can take as partners is to remain united.

As this recession encroached on our nation, it also crept into our businesses and our homes. This event changed the way we thought and required us to make difficult decisions, sometimes even hasty decisions. Our entire industry, in fact all industry, is witnessing bad business decisions daily and the impact of bad decisions gone by. As our sales reps and marketing teams continue to report deteriorating market conditions I write this open letter to express my sincere thanks, to our business partners, for valuing our relationship and friendship over the desperate tactics of floundering businesses.

Let me close by saying, Cox remains financially strong. Our shareholders remain a source of patient capital with a long-term perspective on our investment. Our stakeholders are working as hard as ever to satisfy needs and continue to provide the quality products and exceptional service that our customers have come to expect. We remain excited about the future of our business and our business relationships.

Sincerely,
Michael Johnson
CEO, Cox Industries

MESSAGE FROM COX CEO –THE WORLD AROUND US

The recent demise of the global economy has again opened our eyes to the power of globalism and its impact on our everyday lives. As the flawed U.S. banking system fueled an irrational domestic housing bubble, people around the world felt the impact of the faltering US economy. Recently, I wrote to my company about the “butterfly effect.” The difficult economy experienced in the US has left few companies and families unscathed. However, in recent travels to Italy, Spain, Syria, Mexico and China, I have been witness to inspiring exhibitions of nationalism and pride. These displays are most often by those that have much less than those of us in the U.S., but instead of dwelling on their problems have chosen rather to celebrate their successes.

In Spain, unemployment is running close to 22%, but after Barcelona won the Rey Cup (the Super Bowl of Soccer in Spain), in excess of 500,000 people spilled onto the streets of Barcelona to celebrate their championship. In Mexico, where wages are between $8 and $10 per day, unemployment is a meager 6%. In Damascus, Syria, where wages are closer to $2 per day, factory workers at Sama Corporation eagerly showed how they were working on process improvement. In Beijing, China, where wages are below $2 per day and working and living conditions are extremely difficult, families camp along the waterfront and proudly work along the historic Great Wall. All of these citizens of the World beam with joy and excitement when asked about their country, their family or their employer.

As I have seen these proud people around the World, I have asked myself what stops us from sharing the same pride and enthusiasm. Why do we struggle to allow our celebrations to triumph over our woes? I would aver as Americans, we have much to be proud of; as mothers and fathers, we have much to be proud of; as community citizens, we have much to be proud of; and as sons and daughters, we have much to be proud of. I would assert as stakeholders in our various companies, we have much to be proud of. While I rarely single out individuals, I would like to mention an employee in which we are we are particularly proud. This gentleman recently celebrated 40 years of dutiful service to our company. The celebration did not come with fanfare or excessive ceremony; rather he went about doing the same exceptional job he has performed for 40 years. Take a minute to think about what you should celebrate today. www.coxwood.com

Times & Democrat: Cox comes through in wake of Ky. storm

Saturday, March 07, 2009

This year’s Jan. 27 ice storm is now being billed “the biggest natural disaster Kentucky has ever seen in modern history.”

An estimated 700,000 people were left without power as utility and communications services were devastated. Southwest Kentucky was hardest hit, particularly the territories of Hickman Fulton Electric Membership Cooperative and Jackson Purchase Energy Corp. As utility crews worked around the clock — battling subzero conditions — the challenge was not just repairing downed lines, but also rebuilding a ravaged utility infrastructure from the ground up.

Just prior to the storm, Cox Industries reached out to customers to reinforce their preparedness and inventory capabilities. Once initial storm assessments were made and orders started generating, employees from Cox facilities opened communications with one another: Carolina Pole in Eutawville, Carolina Pole in Leland, N.C., and Cox Wood of Alabama in Vance, Ala. Between the three locations, Cox shipped a total of 171 loads of material: 165 loads of poles, five loads of cross arms and one load of cross braces.

Field service efforts were led by Marvin Burnette and Coleman Allen (outside industrial sales) with assistance from Chris Coker, Angie Blake and Andrea Edwards (inside industrial sales). Communication was integral throughout the response to ensure that appropriate preservatives were being used and to coordinate loading and shipping of materials. Shipments were made around the clock; Cox drivers, working in conjunction with outside carriers, ensured prompt delivery regardless of the hour of day.

A unique solution during this emergency response was the decision to manufacture cross arm braces at Cox’s furniture and remanufacturing facility in Orangeburg (Palmetto Manufacturing).

Phillip Kizer, plant manager, quickly assembled teams and redirected concentrations to produce this industrial product never before made at the Orangeburg facility. The cross arm braces were then sent to North Wood Preserving for treatment and shipped out by equipment from various Cox locations including Augusta Wood Preserving.

Cox Wood of Alabama played a very important role in the successful efforts. Located closer to the impacted sites, Vance became the primary supply point for Hickman Fulton EMC, who just recently switched from Penta to CCA-ET. Dale Nicholas and the staff of Cox’s newest industrial facility handled the task as if they had been providing emergency disaster response for years.

As Cox leaders assess the response to the emergency, they say employees were empowered to make necessary decisions and exceeded all expectations. Burnette said, “I have worked for two other pole companies and have never seen the kind of energy exerted to accomplish what Mike Rouse (Carolina Pole, Leland), Dale Nicholas (Cox Wood of Alabama), and staff were able to … they always come through.”

Cox Responds to Micronized Copper Failure Claims

Many in our expanding dealer base have been asking questions about the Viance press release claiming “evidence” of premature failures in micronized copper preserved wood. The release specifically mentions MCQ which is a quaternary based system. We have noted that many in our industry are moving away for quaternary systems.

We can only comment on our treatment which is a generation ahead in the industry. The treatment and products our dealers are selling, is not the one mentioned in the chemical alert, in fact we differentiate Cox Industries by offering a dispersed copper azole type C.  It is literally a blend of traditional and new technology. It combines dissolved copper amine with a new dispersed copper formulation. This chemical blend is not MCQ or ACQ. There have been no failures involving Cox treated lumber and we are confident in our chemical supplier and the preservatives we use, past and present.

We understand Cox Industries and our dealer family states their reputation on each piece of lumber they sell and to that end we stand behind our products with a limited lifetime warranty.

We recommend that consumers choose a brand name with a solid warranty backed by people they trust. Cox industries and Wolmanized Residential Outdoor Lumber fit that bill. Please click here to view Arch Chemical’s official response to the MCQ controversy.

Should you have any questions feel free to contact us at www.coxwood.com, comment at this blog site or visit our Cox Industries facebook page.

What makes the new Cox treatment different?

The new Cox treatment is dispersed copper azole type C. It is literally a blend of traditional and new technology. It combines dissolved copper amine with a new dispersed copper formulation. It is an offspring of the current CA‐C formulation that was just approved by AWPA and we expect approval of this system as well. We arrived at this treatment in response to a variety of factors. We wanted a system we were 100% confident provided full cell-wall penetration and had a better biocide than was currently available. While we are excited to see many in our industry moving away from quaternary based systems (MCQ/ACQ) towards an azole biocide, they are still a generation behind us. We now use a cobiocide system that uses two different azoles to form a synergistic protection factor. We then blend traditional dissolved copper amine back in with the dispersed solution to provide complete saturation of copper in all parts of the wood cells. As an added benefit, it answered a repeated customer request to have a distinct color difference in their treated lumber without expensive pigments. It is applied and monitored by a computer controlled system. We test every batch of chemical for proper composition and assay every charge of wood to ensure proper retention level. This system, like our service to our customers, is unique to our industry. 

Cox has long been an innovator in the industry and we will continue to introduce new treatments and products that enable our customers to differentiate their business in the marketplace. In fact, in keeping with the continued trend of changing technology, we expect the industry will see further research on new protection systems. These new systems will range from new metal‐based chemicals, to organic systems and even mechanically altered wood products. In turn, we will maintain our efforts to search the globe to analyze new technologies and keep you informed of the latest developments.

 

 

I’ve seen articles about treated wood failures. Is that Cox treated wood?

As a family, building Cox for future generations, we are proud to say we have not had failures, and the science behind our new treatment combined with our quality control will assure none in the future.

Since 1954, we made our preservative choice based on safety, efficacy, and AWPA approvals. Today we uphold the same standard of scrutiny. We stake our reputation on every piece of wood we treat! Historically, most wood failures have been a result of poor treatment processes and poor quality control. While some treaters accept the minimum and allow one charge in ten to fail we have always, and will continue, to ascribe to a 100% pass rate. Our results are independently verified by a third party. We are confident in our chemical supplier and the preservative systems we use, past and present.

I’m confused over the use of treated lumber in contact with aluminum. Is that OK?

Some companies have suggested that you can use their respective systems in direct contact with Aluminum and electro galvanized (EG) products. Cox has deferred this question to our chemical supplier, Arch Chemicals, in cooperation with the aluminum association and the International Code Council. Based on our analysis of their research, we have concluded that no current preservative system containing metals meets approval from these groups. We have never recommended direct contact with aluminum when using Cox treated wood. Cox Industries has begun our own in-house R&D work in an effort to provide more data to support aluminum and fastener recommendations. If you would like more information on fasteners please visit our web  site ://www.coxwood.com/faq for links to various hardware manufacturers and answers to other questions.