Jake Power, PowerWood
The duty at the border went from 15 percent to 45 percent in two months, and their sales volume went up anyway. In this episode of the Woodpreneur Podcast, host Jennifer Alger sits down with Jake Power, managing director of PowerWood in Agassiz, British Columbia. His father started the company out of the family basement in 1995, brokering kiln dried red cedar into a California market that needed it, and Jake was the first employee, cleaning the office once a week for a dollar at twelve years old. He came into the business full time around 2005 with a wood products processing degree, came back from his honeymoon into the 2008 collapse, and in 2011 he and a colleague loaded up on personal debt and bought the lumber business from his parents. What happened next is the part most owners will recognize. Cheap equipment after the crash got them their first molder and dust collection system, fully installed, for under $20,000, and taking the single piece orders nobody else would run turned a distributor into a manufacturer. Then in 2017 the softwood lumber agreement expired and a 20 percent duty landed on a lumber business that sends 50 to 75 percent of its product into the United States. The duty is charged on value, so every hour of labor they added made the bill bigger, and the equipment they had spent a decade buying became a liability instead of an asset. Jake is blunt about the three years after that. The market was telling them how to run the company, and they had never written down who they were trying to be. The turn came from a seven year plan they wrote themselves, no consultants, and finished just as the pandemic hit. They thought they had wasted the effort. Instead it told them exactly what to buy when money got cheap: twelve acres, a hundred thousand square feet of warehouse, four kilns. They took ownership of the new site on April 1, moved the entire company on July 1, were running three molder lines by September, lost three people out of twenty something in a move an hour east, and hit every goal in the plan by November 2025. You'll also hear how they buy from British Columbia sawmills, including taking 80 percent of a custom cut and giving small portable mill operators a way to turn a mixed truckload into cash, how the same lumber business serves wholesale distributors in California and architects directly at home, why Hawaii works differently, the tariff math as it stands today, the one number he wishes he could get out of his customers and into a spreadsheet, why they rebranded their core values as rules, and what shed the bark means to a lumber business crowd that would rather not talk about feelings. Chapters: 00:00 Thirty years from a family basement to a twelve acre yard 03:07 Buying the business in the middle of the 2008 collapse 06:03 A $20,000 molder, one piece orders, and learning what not to chase 11:55 When duties turned a value added business into a liability 14:44 The seven year plan, and moving the whole company in one summer 19:51 How PowerWood buys, sorts and specs cedar for architects 25:40 A 45 percent duty, the K shaped market, and rules instead of values 27:52 The K shaped market, and the next growth ring 29:46 The number he cannot get, and rules instead of core values The Woodpreneur Podcast brings stories of woodworkers, makers, and entrepreneurs turning their passion for wood into successful businesses - from inspiration to education to actionable advice. Hosted by Steve Larosiliere and Jennifer Alger For blog posts and updates: woodpreneur.com See how we helped woodworkers, furniture-makers, millwork and lumber businesses grow to the next level: woodpreneurnetwork.com Empowering woodpreneurs and building companies to grow and scale: buildergrowth.io Connect with us at: Instagram: https://www.instagram.com/sawmillsnearme/ Facebook: https://www.facebook.com/woodpreneurnetwork/ Join Our Facebook Group! https://www.facebook.com/groups/woodpreneurnetwork Join our newsletter: https://substack.com/@woodpreneurnetwork You can connect with Jake at: https://www.powerwood.com/ https://www.instagram.com/customcedar/






