HATTIE: (Voiceover) Mike has built hundreds of log homes since. With 60 employees and $4 million in annual sales, he is a leader in this industry. Jeff Patterson, Mike's head of customer service, tells me...

JEFF PATTERSON (Customer Service): I think one of Mike's greatest assets. He's been willing to change, evolve, learn, get better as the technology increases, as the building practices change. Our industry has evolved, and Mike's business has gone right hand-in-hand with it.

HATTIE: And so it's fun for you to be in a scenario that is on that front edge.

JEFF: Oh, cutting edge. Absolutely. I'll give you an example. We had a West Coast log home show; we had other builders coming up and say, `We know Oregon Log Homes is the best in the industry. How would you do this?' And we're standing in front of our competitors and potential clients.

Unidentified Man #1: (Voiceover) We put out terrific craftsmanship out here. The guys in the yard do good craftsmanship. And I think we've expanded into a higher-end market so we're not doing log cabins anymore, we're doing large log homes.

HATTIE: (Voiceover) Every home is first put together on the lot in Sisters, Oregon.

You are right now building a house that you will tear down...

Unidentified Man #2: (Voiceover) And send--and we're building the roof system on the deck next to it. What we're building out here on this deck is the roof system for this house next to us.

HATTIE: (Voiceover) Mike's son Chris has learned the art of hand peeling.

And how long have you been doing this?

CHRIS: (Voiceover) Since the beginning of summer, since school got out.

HATTIE: Did somebody have to teach you?

CHRIS: There was a couple of other people out here, and they taught me.

HATTIE: So do you think you want to peel logs for a long time?

CHRIS: No. This kind of motivates me to go to college.

HATTIE: (Voiceover) Logs are then notched and fitted together. Every log is numbered, just like puzzle pieces, disassembled and shipped to a site for final construction.

What is the square footage of this house going to be when it's finished?

MIKE: This is around 3,200 square feet.

HATTIE: Is it going to be two floors or just one?

MIKE: This will be two stories. This is the loft above, here.

HATTIE: And then the loft will have a couple bedrooms up there?

MIKE: Right. Two bedrooms and a bath.

HATTIE: You are going to completely assemble all the log parts. And then you take it apart, put it on a truck, and it goes to the site and it has to be reassembled.

MIKE: Right.

HATTIE: Now when it gets to the site, do your people reassemble it or do people out on the site do that?

MIKE: Occasionally we'll reassemble it, or we'll send a technical assistant along to help the owner put it together.

HATTIE: You don't want strangers cutting on your logs.

MIKE: No, no. We try to eliminate that.