EDITORIAL

Hardwood from where?

Kota Kinabalu is not exactly a household name. But, like many presently obscure places in the Far East, its name is expected to become very familiar to those who deal in hardwoodwhether as manufacturer, wholesaler or retailer.

Kota Kinabalu is in East Malaysia, which, along with Indonesia and Papua New Guinea, is making dramatic strides in the hardwood business. Experts say that in the next five years, we should look for new hardwood species in the marketplace along with a markedly higher percentage of imported hardwood. More finished products and parts are also to be expected.

The reason is the explosive economic growth of the Pacific Rim countries, especially those D nations from South Korea to New Zealand. Their phenomenal development of the last few years is supported by a large population, oil, rubber, timber and other resources, and a work ethic in the people that American businessmen marvel at.

Propelling the changes are factors such as transportation costs and natural resources. Already it is cheaper by half for Westerners to get their normd hardwood species from the Far East than traditional Midwest and Southern sources. In Indonesia, for example, hundreds of millions of acres of untapped timber reserves, many of them homogenous stands of hardwood, are waiting to be cut into long lengths and widths, specifications that are increasingly difficult to fill domestically.

Asian wood quality and workmanship in parts and products are more than adequate. Grading rules are generally being kept, though this is, lamentably, far from universal. Indonesian hardwood grading is considered to be excellent. Others are of equal quality. The Malaysian Timber Board, for instance, has a regular program of spot checking exports for grade and quality.

The Pacific Rim countries are also a growing destination for U.S. hardwood exports. Brokers speak fondly about inquiries from Japan for 500 containers of oak. More American oak is now exported to the Pacifirc Rim than Europe.

Although the hardwood business has long been marked by comfortable, traditional patterns, it appears that may be on the verge of changing.

New Pres For Genstar Gypsum

Conrad R. Kelley has been appointed president of Genstar Gypsum Products Co., according to J. A. West, executive vice president.

Most recently southern area manager for Boise Cascade in Charlotte, N. C., he has spent his entire working career in the forest products industry. Kelley will be based in Irving, Tx.

Hechinger Begins Expansion

Hechinger Co. has announced plans to open 20new stores during thenext Z months in locations including North and South Carolina and Virginia.

New stores will include both 60.000 sq. ft. prototype stores with 20,000 sq. ft. outdoor garden shops and larger warehouse stores with bulk merchandise presentations on warehouse racking and discount pricing. The planned expansion will increase the company's existing selling and storage space of 3.3 million sq. ft. by 6090 to 5.3 million sq. ft.

The first warehouse store will open in Raleigh, N.C., this month. A Greensboro, N.C., warehouse will open during their current fiscal year.

McCoy's Opens Store No. 56

McCoy's Building Supply Center No. 56 opened Sept. 19 in Waxahachie, Tx., with a celebration marked by the participation of KBEC radio and many freebies for customers including bandanas and refreshments.

Following the format used for other McCoy stores, the new operation has a 15,000 sq. ft. sales floor set up with wide aisles and informative displays for self service. A 9,300 sq. ft. warehouse and lumber yard are part of the complex.

This is the 28th new McCoy's opened since 1980.

Softwood Plywood Update

The softwood veneer and plywood industry employed 34.8 thousand people in 1982 with a total shipment value of $3.2 billion in 1982 prices.

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