“Our forte has always been the contractor, custom home builders and local repair and remodeling guys. I’m in a relationship business and being competitive and fast is what we do.” – Ray Gaster, founder and owner, Gaster Lumber and Hardware
Pictured is Ray Gaster, owner and founder of Gaster Lumber and Hardware.
To say that Ray Gaster has sawdust in his veins may be an exaggeration, but not by much. The founder and owner of Gaster Lumber and Hardware, Ray, has five decades worth of experience in the wood business.
“It’s been an interesting ride being in this industry for this long,” he said.
Ray first entered the field that would become his life’s work after returning from a year of service in Vietnam. After taking advantage of the GI bill to complete his education, Ray set his sights on the Savannah branch of Georgia-Pacific.
“My background in lumber began in 1971,” he recalled. “I started with Georgia-Pacific in Distribution. In those days, they were a plywood and paneling wholesaler and did very little lumber. I think the only lumber we carried were some studs.”
Where others saw specialization, Ray saw opportunity. He was given the role to expand Georgia-Pacific’s core distribution business and went from rookie to lumber sales manager in about a year. Under his guidance, the branch’s sales grew exponentially as they took on the lucrative lumber market. After a couple of years, however, Ray found himself looking for new challenges.
Gaster Lumber and Hardware has three locations, their main location is located in Savannah, GA, their other two yards are in Hardeeville, SC, and Bloomingdale, GA.
“I worked in the export business with Caribbean Lumber Company,” he said. “I went from buying truckloads to buying and sourcing boat loads of lumber.”
By 1980, however, Ray had seen enough of the lumber industry to know that he could strike out on his own and be successful.
“I knew how to buy and sell lumber on the phone, so I created South Atlantic Forest Products Inc. I was a broker, and I had a couple of associates who came to work for me,” he said. “From 1980 to 1984, we were going through a bit of a housing boom and the economy was picking up. I had been concentrating on selling export or high-end stuff, specialty timber and hard-to-get items in Yellow Pine.”
Gaster Lumber sells about two-and-a-half million feet of pressure-treated lumber and between seven and eight million feet of softwood lumber, including Yellow Pine and Spruce, each year.
Then Ray decided to take the business in a new direction. He turned to a yard manager who had previously worked for a home center, offering him a chance to bring that expertise of selling to builders as part of his new venture, the Gaster Lumber Company.
“I figured I did not know that business, so I hired someone who did,” Ray said.
When the company opened, it was a modest affair; set on three-quarters of an acre, with a Quonset hut serving as an office. Ray purchased a couple of trucks and forklifts and hired a driver. By January 1985, the company was open for business, and ready for success.
“By the end of our fiscal year, we went from zero to $2 million in sales,” Ray said. “I remember I then bought the land where our office is now, and in June we bought the computer system that we used for almost 30 years. We were off to the races.”
Ray estimates that he sells about two-and-a-half million feet of pressure-treated lumber and between seven and eight million feet of softwood lumber each year. In terms of species, Ray said approximately 65 percent of that softwood is Yellow Pine and 35 percent is Spruce. He added that he also sells a lot of CDX plywood and OSB as well, including Huber Advantec.
Ray said there was a lot of success in those early years, although he also noted that it was not always smooth sailing. A series of recessions in the 1980s and 1990s hit everyone in the homebuilding industry, but Gaster Lumber continued on a steady upward trajectory.
“We expanded from one yard – we still have that – and added two other lumber yards. In Bloomingdale, GA, they handle framing and wood products. They sell a lot of industrial materials used for crating by exporters. Our other location in Hardeeville, SC, is busy supplying materials for large vacation and relocation homes in an always busy “hot” coastal housing market.”
Gaster Lumber has maintained its own fleet of trucks since Ray Gaster founded the company.
Over the years, however, Ray began to notice as his fellow independent lumber yards began to fall by the wayside as the big box stores began to establish a presence throughout the region.
“When I opened up my lumber yard, there were about a dozen other lumber yards and millwork companies. Today, there are only three of us with lumber yards and a couple of millwork shops left,” he said. “I am a survivor, but I also play a tough game when it comes to competition. I think we can go toe-to-toe with anyone, and we’ve had successes and fun doing it.”
Ray said he has learned many lessons along the way and added that he has always made it a point to never fear trying new approaches.
“You throw it against the wall and see what sticks,” he said with a laugh. “I built a new, “perfect yard” in 2008 when I thought we were coming out of the recession; I wanted to be THE yard. It was open for a couple of years, and then to stay in business, I sold it off.”
Gaster Lumber and Hardware Company employs nearly four dozen people and offers an impressive array of products.
A careful planner, Ray has always made sure that the company has remained cash-rich so that it could weather even the most challenging economic conditions.
“In the recession, I had extra cash and bought a garage door and fireplace shop. It worked, but you must have someone who knows and understands the business. We had a door shop during the Great Recession, but the more doors we made, the more overhead we had. I am a numbers guy, and that means you have to look at things and be honest if things are going to work or not, then move on.”
Part of that calculation involves finding ways to survive as an independent lumber yard in today’s economy. Ray said Gaster Lumber and Hardware has thrived in part due to the relationships that have been built, not only with customers, but with suppliers as well. He pointed to the fact that there are mills with which he has been doing business for 40 years or more. Furthermore, he has teamed up with other independent companies being part of larger buying groups to help generate the same sort of purchasing power usually reserved for the big corporate yards.
“Our forte has always been the contractor, custom home builders and local repair and remodeling guys. I’m in the relationship business and being competitive and fast is what we do,” he said. “Number one, we can source the material, and number two, we have the expertise as to how to go to market with this. We make positive things happen.”
Pictured is Frances Lanier, Gaster Lumber’s wood products buyer, and Ray Gaster.
Today, Gaster Lumber and Hardware Company employs nearly four dozen people and offers an impressive array of products. In addition to a wide assortment of lumber options, the company also sells windows, doors and millwork, always with an eye toward keeping its ever-growing customer base happy.
“You need to identify who your customers are and go after them, and take care of them whenever they come in,” Ray said. “You need to keep on the leading edge; you need to stay successful and stay in the game. That’s what leads to longevity. Every day, you are getting successes, maybe not hitting home runs, but base hits and doing the best you can.”
Thinking back over his years in the industry, he closed by saying that there was one piece of advice in particular that has stuck with him. He said it came from his time as an Ace Hardware franchise owner.
“They talked about having 5,000 stores, and that too many independent business men concentrate on being independent rather than on being businessmen. And I thought, they are exactly right, and that is what I have tried to do. I love being around business people, and I love this business,” Ray said. “It’s challenging at times, but when you get it all going in the right direction, you can’t get any better. It’s taken a lot of discipline and there’s been a lot of learning along the way. We have been fortunate; I have some great people who have stuck with me over the years; I put them in the game and we see what they can do. It’s great. It’s exciting. We have a great future ahead of us.”
For more information, visit www.gasterlumber.com.
