
Last fall, Lumbermen’s welcomed Jeff Malloch as Vice President of Building Materials. With a background in leadership from a large public school district, Jeff brought a fresh perspective to the role. Now, eight months in, we caught up with him to hear his reflections on the company, industry trends, and the opportunities ahead for building materials dealers.
A: “I began my business career as a CFO in a large public school district, overseeing more than 900 employees across finance, HR, operations, construction, technology, transportation, and food service. Leaving a place with such a strong culture was not easy, but Lumbermen’s reputation for genuinely caring for its people and supporting customers at the highest level made the decision feel right. Since joining the building materials industry, I’ve been struck by the deep loyalty and dedication of the individuals within it. Early in my transition to Lumbermen’s, someone told me, “Once you start in this industry, you never leave”—and I’m beginning to understand why. As I navigate my first year, building new relationships with our expanding customer base, I’ve come to see this industry as one big family—where vendors, distributors, dealers, and contractors remain closely connected in a fast-moving and rewarding market.”
Q: Does anything else stand out to you about Lumbermen’s specifically?
A: “I’ve been consistently impressed by the customer-first approach that defines our teams. Our Outside Sales Representatives and Customer Service Representatives are true advocates for our customers, working hard to solve challenges, manage special requests, and secure the right product mix. This commitment helps us build long-lasting partnerships based on trust and reliability.
Our strategies around pricing, programs, and protections are designed with flexibility in mind. But while we adapt to market conditions, integrity is never compromised. Every decision is made with fairness and long-term relationships at the core.
What really stands out, though, is the culture. There’s a strong sense of ownership, teamwork, and pride in what we do. The Lumbermen’s brand carries weight—not just because of what we sell, but because of how we show up for our customers and partners.”
A: “Tariffs on building materials often lead to increased manufacturing costs, which are typically passed down the supply chain to the end user. This creates upward pressure on prices and contributes to broader inflationary trends. In turn, inflation may impact the Federal Reserve’s decisions, potentially delaying interest rate cuts and keeping mortgage rates elevated. High mortgage rates can slow new construction and reduce demand—particularly in the entry-level housing market.
Materials sourced internationally are also more exposed to price volatility and supply disruptions due to global trade dynamics and logistical challenges. On the other hand, companies that source and manufacture domestically tend to benefit from more stable pricing and supply, creating a potential competitive edge.
Despite these headwinds, the repair and remodel (R&R) segment remains strong. Many homeowners are opting to invest in improvements to their current homes rather than navigating today’s higher-rate homebuying environment.
While these challenges weren’t anticipated during our 2024 planning, we view them as opportunities. They’ve opened the door for meaningful conversations with our Dealer network—focusing on job-specific needs, current strategies, and forward-looking plans. This proactive engagement is helping us uncover win-win solutions during a time of uncertainty.”
A: “Over the next five years, building materials dealers have a real chance to grow—especially if they align with the right kind of distributor. It’s not just about offering premium products at competitive prices anymore. Dealers who partner with distributors that are agile, market-aware, and genuinely invested in their success will have a clear advantage.
Success will come to those who work with distributors that blend strong product access with a deep understanding of local and national trends. That combination allows dealers to deliver faster, more relevant value to their customers. Technology will also play a major role. Dealers that embrace digital marketing and support tools provided by distributors will stay visible and connected in a buying process that’s increasingly happening online.
Equally important is the internal investment in people and culture. Attracting and retaining top talent will be critical to maintaining consistent service and driving long-term growth. Finally, dealers need to stay adaptable. Those who are forward-looking and work with flexible, tech-savvy distributors will be best prepared to meet the evolving demands of the industry.
Ultimately, the dealers that focus on strong partnerships, smart technology, and a winning culture will be the ones leading the way in the years ahead.”