IIUSTOil| ORDTNT Millwork trends

ll,HAT are rhe millwork trends of rhe'90s? Will new UU markets develop? What will be the most wanted millwork products? How will the industry cope with declining housing starts and an uncertain supply of raw material?

George Kavooras, president and c.e.o. of'Mouldings & Millwork Inc., El Paso, Tx., and Fair Oaks, Ca., agreed to share his views with our readers.

Story at a Glance

Mlllwork dlstrlbutor sees surge In fingerjolnted produc{s...decorative mouldings holding steady. lumber shortages, possible allocatlon, small companies failing.

Do you expect any changes in the millwork business in the next few years?

Yes, I foresee several changes in the next few years. The t remendous surge in the use of fingerjoint products will continue and, in [act, grow. Fingerjoint products are selling quite well in markets that have used none or very little of that product.

lAccordion doors designed for use where performance is importint for HOMES.

lCustom-sized room dividers ship within a two week production cycle from the factory lAccordion doors custom sized to your customer requirements

Rock. AR

TIMBER PRoDUCTS COMPAf{Y. Orlrndo. FL

ADI)tSON CORPORATTON, Arbany, OA

ADDISON CORPORATION, Atlanra, (;A

ADDISON CoRPORATIoN, Augusta, CA

ORVIS COMPANY, Valdo*a, GA

ALl,lED SASH & DOOR. INC.. touisvillc. KY

ALLEN MIl,l,C/ORK, lNC., Shreveport. LA l,At-AYETTE VOOD VORKS,

Manufacturers who do not have fingerjoint capabilities are already finding it difncult to compete with those who do. I think this will continue.

I also foresee the demise of some of the smaller independent moulding and millwork producers. Competition and financial strength of the bigger companies are making it very hard for them to compete.

Do you anticipate any new markets opening up for moulding?

No, I don't anticipate any new markets other than the possible development of some of the foreign markets such as Europe and the Middle East. Will the housing slowdown change the millwork market?

Yes, the housing slowdown willprobably change the millwork market considerably. Moulding and millwork products are being overproduced, especially for a slow market. Due to the savings and loan scandal, lending institutions have a whole new outlook in lending funds for housing. Mortgage rates are reasonable and normally would generate a fairly active housing market. However, prices have gone out of reach for the first time home buyers and contractors are having a diflicult time getting construction money.

Another industry uncertainty is the future of lumber caused by the conservationists and C.A.V.E. (Citizens Against Virtually Everything) people. The rush to log and process lumber now and dump it on the market at reduced prices has deflated selling prices to dangerously low levels. Manufacturers are losing money on every load they ship.

Q: Do you expect an increase in decorative moulding sales?

A: Decorative mouldings are here to stay, for a while anyway. We see larger and more decorative moutdings every month. We have even "designed" some patterns for customers who have had an idea (for something different). We are able to make their design fit the kind and sizes of lumber available to the industry. We feel there is more knife steel being used for the current big moulding trend than at almost any time in recent Years.

Q: What will be the most wanted millwork products?

A: The most wanted millwork products will more than likely fall into the decorative moulding usage. Also hardwoods have had a resurgence and the majority of our customers are selling oak and other hardwoods. A few plants on the west coast are veneering oak over fingerjoint substrate. The demand for this is so high that some markets are on allocation.

Q: Will manufacturers and distributors have these products readily available for retailers?

A: In general, yes, but if demand stays high or goes higher, more areas may end up on allocation.

Q: How will your company respond to these product changes?

A: Our company will respond to our customer's needs in any way we can. We have been approached by some of the oak veneering companies, but at this time we have not committed to a program.

Q: Do you anticipate any changes in marketing strategy?

A:

The only change in marketing strategy that we are watching is the markets that have two steppers as compared to the one step market. Two steppers are distributors who sell the retailers, who in turn sell the builders. One steppers are distributors who sell direct to builders. We are watching the two step market as some of our customers are considering the one step approach to increase sales and profits. Does your company anticipate any marketing changes in the near future?

A:

Our only attitude at this time is wait and see.

Sacramento, Ca.

Ponderosa Pine, Sugar Pine, S.P.F, White-Fir, Douglas Fir, Cedar

James A. Haas, gen. mgr.

Richard H. Mills, Melissa Morinelli

Mouldings, Millwork, Cut Stock, Plgrwood, Lumber, Particleboard

Sales Agents for:

Duramold Wood Products, El Paso, Tx.

W&W Moulding Co., Loomis, Ca.

P.O. Box 255546, Sacramento, Ca.95865 US Wats (8001624-5319 Ca Wats (800)321-1278 (916\972-7282 FAX 916-972-7290

San Francisco, Ca.

Mahogany, Meranti, Keruing, Ramin, Nyatoh

Franklin O. Billings

Mouldings, Millwork, Plywood, lndustrial Hardwood, Truck Decking, lmported Hardwood/Softwood Lumber

EXPORTING: Softwood Cut Stock, Hardwood Lumber & Dimension, Softwood & Hardwood Specialty ltems

1050 Sansome St., Ste. 300, San Francisco, Ca. 94lll (4r5)39r-6700 FAX 415-981-4130

Omaha' Ne.

Candace Briggs, mgr.

Dave Kipp, Jackie Scoles

S.P.F. Dimension, F/L Dimension, Hem-Fir Dimension, CCA Treated Lumber, Cedar Siding Products Southern Plywood, Western Plywood

One Central Park Plza, Ste. 200N, Mail Drop 27, Omaha, Ne. 68102 (4021978-4525 FAX 402-978-4526 (800)535-7898