CAROLINAS

Executlve Vlce Presldent

USINESS slowed only slightly in July and August. Most areas reported large increases over the same period in 1982. The biggest complaint is that there are still shortages in many commodity items. Some hardboard siding products have been put on allocation.

In talking with credit managers in several areas, there seems to be an increase in slow pays. Several commented that they are beginning to crack-down on those builders who have an increased inventory of unsold homes. Watch for the danger signs of over+xtended credit.

Many dealers have expressed a fear about the increases, recently, in interest rates. Our recovery is still very fragile and although we believe it will continue through 1983, we suggest caution. Continue to manage your business future, don't let present or future conditions manage you.

On an average, dealers report that through August, 1983, their volume has increased 5090 over the same period in 1982. These kinds of increases always cause business problems. Remember your competitor is probably having many of the same type difficulties that you are experiencing. The key to your success over him is how you and your staffhandle these problems as they occur. Turn problems into opportunities by approaching