Ways to reach non-rGsidential markets

A EARCHING out non-residenID tial and industrial markets and developing special niches are recommendations for surviving in the lumber and building materials industry.

However, negative attitudes often make it hard for some managers and salesmen to do this. Too small to bother with. Too much paperwork. Too hard to locate. Too big to buy from us. These will kill a sale before it begins.

This magazine found an entirely different mind set in talking with dealers who appear to be rising to the top despite low housing starts. "Sure, some of our facilities maintenance accounts only spend a couple of thousand dollars a year," one sales manager said, "but if you keep enough of these on the books, it adds up."

Paperwork gets easier after you learn the jargon and rituals of dealing with the government and military, claims a lumber dealer specializing in these sales. The buyer for a large mobile home manufacturer said they buy locally and like to talk with salesmen.

There is demand for building products out there if you look for it.

Take structural panels for example. The American Plywood Association is targeting industrial, commercial and other non-residential markets with their promotions. They are distributing literature that illustrates the benefits of structural panels to various potential buyers.

The manufactured housing industury is a large user of structural panels. Since 1976, structural panel use per single unit has multiplied l8 times with multiwide units, which use more panels, doubling the volume per unit, Figures from the Wood Products Promotion Council show each single unit using 1,657 sq. ft.,3/8" basis ofstructural panels and each multiwide unit using 3,252 sq. ft. This is for floors, walls, roofs and ridge beams plus a small amount of incidental use.

The material handling industry also consumes a lot of structural panels. APA is actively marketing them for pallets, pallet bins, liquid tanks, crating and shelving. In addition, the APA Big Bin design, which holds as much as 300 gallons, is tailored to the needs of the food, agriculture and chemical industries. Many pallet manufacturers buy mill direct, but others use local suppliers.

Purchasing agents for facilities maintenance at large companies, federal, state and local government buildings including schools are easily contacted through cold calls, said one sales manager who does a lot of this. He also recommended reading the F. W. Dodge "Greensheet" or networking to put salesmen in touch with contractors needing materials for industrial or commercialjobs.

Story at a Glane

Salee mrnagers sharc ldes ior rcachlng noruseldentlal mark€ts . . . doaeloplng spedal nlclps eales technQues, publlcaUons and classesto help.

Roofing contractors, especially as maintenance increases on older commercial and industrial buildings as well as homes, are good prospects for panels. Some large companies buy mill direct, but even they will use a local supplier in an emergency. Smaller companies say they usually rely on lumberyards or wholesalers in the area for roof deck material.

Military and government contracts require keeping with up changing markets and specifications as well as mastering the paperwork, our reporter was told. Companies can prequalify to be invited to bid. Most bids are written, but occasionally phone bids are used. Reading the "Commerce Business Daily" is a must. Classes on government requirements such as those offered through George Washington University,

FI EALERS can minimize l/ plaints and callbacks builder, remodeler and customers by making sure know the basics of finishing rated siding.