TEXAS TOPICS

JOE BUTLER, SR. executlve

vlce precldent

Tgf TEXAS Legislarure is back at I work and will remain in session for the next 140 days during which they anticipate discussing over 5,000 pieces of legislation.

One of the most important to lumber dealers will be a new condominium act which was introduced last session, but.because of objections by lumber dealers and others,died in committee. This year, the

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Apartment Association, which is a sponsor of the bill, has been conferring with realtors, home builders, bankers, title companies, and LAT's attorney, Robert Bass, to see if all of the objections can be resolved before the bill is introduced.

Although great progress has been made to refine the bill, it is anticipated that when it is filed in the next few weeks. it will not fully protect the lumber dealer's lien rights. The association will continue to monitor this legislation and keep you advised of developments.

San Antonio's Convention Center will be the site of our 97th annual convention and exposition, April 29, 30 and May l. The four hotels that will be used by the association are the Four Seasons Plaza, Hilton Palacia del Rio, Hyatt Regency and La Mansion. The Hyatt has been designated headquarter's hotel with the president's dance and banquet scheduled for their ballroom.

The Dataline Corp. is sponsoring seven one-day seminars to introduce lumber dealers to the capabilities and uses of microcomputers as management tools. Unlike most seminars, these sessions will include hands-on use of the new, small business computer, the Dataline 525, which they have developed for small retail lumber dealer operations at the urging of L.A.T. This small unit will put the advantages ofcomputers at the fingertips of any size lumber dealer doing as much as several hundred thousand dollars in sales each year.

Today's new, small computers are coming within the financial reach of every dealer. If you haven't taken the time to look at computers, don't let this opportunity pass. There is no charge for the seminar which will include the basics of computer terminology, computer functions, assessment of your own computer needs, actual use ofthe computer and an on-site visit to a dealer using a computer system.

Vlce Precldent

I CCLAIUED as one of the state's /Ilmost gifted writers and historians, WalterT. Durham, chairman of Durham Building Supply, Inc., Gallatin, has published his third book dealing with the history of Sumner county, Rebellion Revisited, a History of Sumner County, Tennessee, From 186I -I 870.

Long active in TBMA, Walter has served as a director and vice president of our association. We commissioned him to write the ofhcial history of our association and the building material industry, published on our 5fth anniversary. Copiesof The Building Supply Deoler in Tennessee-A History of the Tennessee Building Moteriol Association, 19251976 are still available from our office.

Another active association member. Grady Haynes, president of Haynes Brothers Lumber Co., Murfreesboro, has just published the fourth edition of his Handbook for Employees. This 22 page booklet is one of the most complete handbooks for employees that we have o<amined.

It has been our observation that those who do not have written policies leave themselves vulnerable, especially when it comes to dismissals. In addition to establishing employment policies, it eliminates controversy. A policy handbook also creates employee relationships by letting the employee know in writing what his benefits are with your organization.

Grady has been kind enough to furnish our associaton with a supply of his handbooks for the cost of the printing. If you would like a copy, please contact the office. executlve lOlLOW up on rhe annual Conven- I tion/Housing & Building Products Show at the Radisson Plaza Hotel and Civic Center in Charlotte, N.C., will appear later.

Seminars will be held in Big Springs, March 3; Amarillo, March 4; Dallas, March 7; Austin, March 8; San Antonio, March 9; Corpus Christi, March l0; Houston, March ll.

Up coming events include Conference with Congress, March 16 and 17; Basic Estimating Clinic, Greenville, S.C., and Greenville, N.C., March 22 and 23,29 and 30, and the Good Idea! Conference with Jim Pence at Greenville, S.C., Charlotte and Raleigh, N.C., April l2-t4.

Summer Conference will take place at the Grove Park Inn, Asheville, N.C., June 9-12. The Young Carolinians Idea Exchange is set for July 28-30 at the Fairfield Inn, Sapphire Valley, N.C.

Of course, CLBMDA will take part in the NLBMDA's annual meeting at The Pointe, Phoenix, Az., October 8-12.

JACK ATLISON executlve dlrector

ltnSf, the stock market raised the f confidence level a bit, then interest rates started down, then we had a couple of months of pretty decent weather for this time of year. Whatever the combination of reasons, business has generally been better for most of the members we have talked to. Not any records, and very inconsistent, but still better.

Of course. with manufacturers' inventory levels being down so far, the spurt of activity has shot some prices skyward as many had predicted. We still follow one of the "market basket" houses we used to publish, and prices are creeping back up toward the high which was reported in July of 1981.

"Cautious optimism" has been so overworked that it now describes the norm, not an infrequent condition. So just let's say that 1983 isgoirg to be a better year for everyone. However, as we've said before, it's going to be a Whole New Ball Game, and that's the very appropriate theme for this year's annual convention at The Homestead, March 2U22.b don't miss it.

The mortgage retirement account tops the NLBMDA priority list. Senator John Tower will introduce legislation early in tNs scssion of Congress to allow IRA contributions to be invested in one's home mortgage. NLBMDA will take the lead in trying to gather maximum bipartisan support for the measure. In a meeting, Congressman Tom Bliley of Richmond said that the MRA has a good chance of success. We have written to the members of the Virginia delegation requesting their support as co'sponsors.

by Don A. Clmpboll

I ET'S START off in a light veinbdid you know that it will be two long years before we have a new President, yet there are already more than 43 declared candidates for President in the 1984 election?

Now for the more mundane items that are bothering all of us most of the time. As an example, fixed mortgage rates have jumped to as high as 13.590 in the past three weeks from a low of 12.590 on loans that are not backed by government insurance or guarantees. Lenders attribute the increase, after six months of declines, to anxiety about the record federal budget deficit. So after a six month free fall, fixed mortgage rates are rising again.

And yet we have only to look back a little to learn that no sustained economic recovery in history has been launched in the face of interest rates as high as today's I l9o prime rate. So it is little wonder that the policy since July has been driven by almost religious devotion to drag rates slowly down. The President, in his State of the Union address. called for further reduction ofone or two points. The trou- ble is that interest rates have gone up in recent days, not down. Even though this may be short lived, it suggests that the Fed is running into strong market resistance. By any yardstick of past performances, this can only mean modest interest rate relief and a limping recovery.

The most immediate reason for the interest rate flurry was the blunt warning by Fed chairman Volcker that the objectives oflow inflation, falling interest rates, and a growing economy just cannot coexist with massive federal deficits.

The Fed is committed to bringing rates down, possibly a point or so to help recovery, but they also say that the recovery must be modest as long as federal deficits remain high. It's a policy that most financial traders find unavoidable. They say "the recovery is happening, but we already have a govemor on it."

Unfortunately, short term interest rates are beginning to rise. Many think the rates are being pushed up because investors fear that the Fed sees limits on how far it can go to keep rates from rising in the face of this unacceptable federal bonowing. The money supply has been growing and the Fed has warned that it cannot be counted on to expand money and credit indefinitely. This should be taken by those in authority very seriously. Otherwise, it will feel compelled to clamp down if any sigrrs of inflation are being rekindled.

I hope the Fed holds to the course of relative ease in restraining moneygrofih that it has pursued since last summer. Under that policy interest rates declined while the inflation rate fell to less than49o annually. The breaks we have had in oil prices have already dampcned inflationary pressures, and may do so even more. Maybe it will help reassur€ the Fed that it need not tighten money and credit as an anti-inflation m€asure right now. To support thesc efforts and help push rates down further, Congress and the Adminisration should take action to trim future budget deficits substantially. What the Fed wants, and what the nation must have, is sustainable, non-inflationary growth. Help is needed from both Congress and the President ifthis goal is to be achieved.

Congress could help reduce interest rates p€nnanently by reducing the deficit and by resisting bailouts, but if Congress simply orders ftrtes put down, it will achieve nothing but a resumption of inflation, perhaps at a faster rate than before.

Redwood PlaystoWin

Redwood is extending its leisure image with use in saunas and hot tubs.

The natural durability of the wood as well as its resistance to moisture make it a natural choice for a high humidity environment. Redwood seats stay warm and comfortable to the touch, never becoming clammy with moisture or water. Moisture also appears to enhance the color and characteristics of the redwood interior of a sauna making it warm and attractive to the eye. Redwood hot tubs harmonize with the garden settings either in or out of doors.

Redwood is assuming more importance in the leisure market as the popularity of the sauna and hot tub increases all over the countrv.

New Milllor Old Redwood

Visitors to The Pacific Lumber Company's Mill B complex in Scotia, Ca., this spring will see something of a rarity these days-a brand new sawmill side built specially to handle large old growth redwood logs.

In an era when most new sawmills are built small to handle large volumes of small diameter logs, such a big layout is most unusual. The ll4-year-old company tore out its Mill B number one side entirely last year and replaced it with a state-ofthe-art set up which combines great accuracy with improved production.

The $2,000,000 project entailed a new inside log slip; a new live log deck; a new nine-foot Kockums high strain band mill; a new two block Filer & Stowell carriage with 84" opening; new set works and electric drive from Industrial Electric; a new 8" x72" Schurman edger with infeed table, and a fully enclosed IrvingtonMoore trimmer.

Before the new machinery was installed, the foundations under the bandmill and carriage were rebuilt entirely and isolated from the rest of the mill underpinnings. Installation and all construction were accomplished with Pacific's own crews.

After the new #l side was up and running, the f2 side carriage was rebuilt entirely, and the f2 bandmill, a l0 footer, was overhauled.

The {2 edger, also an 8" x 72" Schurman, was fitted with a new infeed table, operator cab, laser lights and set works to match the #l edger.

REDW00D is a good choice for saunas and hot tubs because of its resistance to m0isture. Both are active sellers in the leisure products sections of home centers.

The eight-foot #3 side, which is usually run only when #l or {2 is down, got a new log deck to keep things even.

With #l and #2 rigs running, the eight hour capacity of Mill B is 300M BM. It is interesting to note that when Mill B was built in 1910, it contained two l0-foot bands and two 8-foot bands and cut l75M BM per eight hour shift.

All the old growth redwood logs cut at Mill B come from Pacific's 167,000 acres of timberland. Old growth fir is cut at Mill A in Scotia and young growth redwood and fir at Pacific's mill in Fortuna.

With the Mill B project completed the Scotia crews are now busy with a

FOR SAI.E

By Sealed Birls

TUMBER PLANT Owassa, Alabama (Near Evergreen)

Located on 123 acre site. Sale includes two sawmills, office, repair shop, four lumber sheds, scales, kilns, boilers, planer, yard eguipment, and highway equipment.

PLY'WOOD PLANT Riverfalls, Alabama (Near Andalusia)

Complete operating plant located on 150 acre site. Note: Pl) /'/ood and log inventory to be offered separately.

o Property inspected by appointment

. Plants to be sold separately

. Bids due April 29, 1983 r Contact Henry Long, Waymon Paul, or Mike Moore for complete brochures on each plantAmSouth Bank (Nq 3es41 complete renovation of the Mill A fir complex. This project is budgeted at $10,000,000 and is scheduled for completion this fall. The new Mill A will be enclosed in the same building and will also take over the adjoining plywood plant, which was closed in October. Process equipment will be new from the log slip through to the planer chain. Eight hour capacity will be about 200M BM.

Property owned by TMA Forest Products. Inc.

The Mill B sawmill is open to the public weekdays 7:30 a.m.-ll:00 a.m. and l:00 p.m.-3:30 p.m. Every year from 40 to 50,000 visitors take the self guided tour.

Quality Redwood

Manufacturers of fence boards; posts and rails; decking; specialty items. Our sawmill and re-man facilities provide us with versatility in meeting your customer's needs.

Lrom The Lorest To The Lence

P.O. Box 248 Arcata, Ca.95521 (7071822-1779

Russ & Bob Britt

Paint Leads Decorative Sales

Decorative products consumers have been profiled in a recent Frost & Sullivan study which details product usage as well as buying characteristics and behavior.

Based on data collected from 15,029 adults and ll,0o0 histories obtained in the Simmons Market Research Bureau's annual study, the report covers wall paneling, wallpaper, wall-to-wall and indoor/outdoor carpeting, no-wulx vinyl tile and sheet goods, exterior and interior paint.

Over 4OVo of the home improvement buyers purchase interior paint. Fully 8290 of the households buying paint apply it themselves. Only a small percentage of the significantly older group buys oil paint. Nearly a third ofall paint is purchased at paint stores. Sears accounts for a quarter of the remainder with hardware stores and home centers sharing the leftovers. The interior paint buyer closely resembles a home imProvement buyer.

Exterior paint is the second most popular purchase with l79o reporting a purchase within a 12 month period. These buyers are characterized as slightly upscale of home improvement product averages, strongly male-oriented and heavily d-i-y. Latex paint dominated although 2790 bought at least some oil-based paint and l99o bought stain.

Wall paneling buyers, accordingto the study, are likely to be d-i-yers, often middle-aged, middle-income blue collar workers. A third of the households buying paneling account for more than half of the total amount spent for the product; the remaining buyers spent less than $20.

Purchasers of wallpaper are younger and more upscale than the average home improvement product consumer; 44c/o are under 35 while only 4090 of all home improvement product buyers are that young. More women buy wallpaper. Purchases are small, with two-thirds spending less than $100 per year. Less than 390 spend more than $500 annually.

Wall-to-wall carpeting is a d-i-y purchase for 3890 ofthose buying it. These consumers were younger, less

Furniture Mart Trends

Winter furniture markets in both Dallas, Tx., and San Francisco, Ca., recorded improved attendance and buying for the first time in five years, according to Dave McCullam, v.p., Northwest Hardwood, Inc., Portland, Or.

Dallas showed more table groups (1319) than San Francisco (986) with figures more closely paralleling the case goods survey made in High Point, N.C., last October in both styles and woods used.

C-alifornia showed contemporary in 51.390 of the showroom spaces while Dallas showed 43 .8 9o Oriental in San Francisco was 790 compared to 6.390 at Dallas. Early American and rustic ranch dominated Dallas while California showed more tradi- educated and with lower incomes than the product group as a whole. Buyers of indoor/outdoor carpet are older with higher incomes than most home improvement product buyers. Residents of the West buy the most indoor/outdq)r carpet. tional styles such as l8th Century English, English country and French provincial, court and country.

Only 5890 of the no-wax floor tile purchased is installed by the buyer or a member of his family. No-wax sheet vinyl buyers are solidly middleclass with a hieh p€rcentage of d-i-y installation. Demographically, the group coincides with what many home center retailers see as their target shopping group.

Oak dominated in the West with 34.6010 compared to ?5.390 in Dallas and 25.4s/o in North Carolina. Cherry and walnut were more frequently seen in Dallas than San Francisco where burl figures were tabulated at an all time high of 9.50/0. Printed or embossed grains were 8.190 at Dallas; 9.590, San Francisco; l0.l9o, North Carolina. Painted or enameled table groups reached 5.890 in Dallas, 5.590 in San Francisco and 690 in North Carolina.

Cypress, Hardwood Meeting

The Southern Cypress Manufacturers Association and the Southwestern Hardwood Manufacturers Club will meet in conjunction with the annual meeting of the Southern Hardwood Lumber Manufacturers Association, March 2l-23 tt the Hyatt Regency, Atlanta, Ga.

Kentucky Estimating Class

The Kentucky Lumber & Building Material Dealers Association will conduct a three day serninar on basic estimating and construction at The Springs Motel, Lexington,Ky., on March 9, l0 and ll.

Instructor will be Rudy Jones, former director of the Small Homes Council of the University of lllinois, assisted by Tom Miller of Allied Sash & Door Co., Louisville, Ky.