SOUTHERN ASSOCIATION

Carolinas-Tennessee Building Material Association reports that in talks with dealers and suppliers around the three states, they find a wide difference in business conditions. Most areas report business is down over last year but still better than expected. Overall business is down between l0% and l2o/o in most areas. Several areas reported business down as much as 200/0.

Problems continue to grow in the savings and loan industry as well as banks who have stopped making construction loans. Two large North Carolina banks just reported they will no longer make any construction loans to builders. Another serious problem is receivables. Dealers report the highest receivable past due amounts since early 1980. This, of course, is causing problems for suppliers who must wait lor the dealers to be paid.

Interest rates have also started inching up again due to the lraq mess. Just as housing inventories started to move, the jump in rates stopped it. The number of unsold spec houses continues to increase in many areas. Many smaller commercial projects are in trouble with more smaller office buildings and strip shopping centers than there is a demand for. The immediate future is not promising because many businesses have cut back or are holding offon expansion due to the uncertainty ofl the economy.

The good news is that as bad as things could be, they aren't. Compared with the northeast and other areas, markets have held pretty well. However, there are many unanswerable questions. Will we see a deep recession soon? Too hard to predict. How'will the middle east situation end up? With the money crunch problems in the industry still diflicult to analyze, where will interest rates go?

Best bets! ( I ) Watch the overall economy closely; (2) Get a handle on your receivables quickly; (3) Try to build some new or increased business in areas other than spec contractor sales; (4) Watch your inventory levels and expenses very carefully; (5) Find ways to make your employees more productive.

Building Material Merchants Association's board has approved forming a Construction Credit Coalition as a lobbying arm. lts purpose will be to protect present lien laws in Georgia and write new lien and bankruptcy laws within the next two years. Fund raising aims lor $250,000 in two years. lrv Goodroe, executive vice president of llMMA, will direct the coalition in lobbying and recruiting between 1500 and 2000 members from construction companies eligible to file mechanic and material liens.

The board also approved hiring ol Larry Marler to provide regulatory assistance to dealers. Experienced in regulatory affairs, especially transportation, he plans monthly updates on all regulations applying to dealers. lle also will establish a compliance consulting service to which dealers may subscribe. This will provide on site supervision to assure compliance in truck and driver regulations.

The association also is authorized to employ a public relations, advertising, marketing person to assist with the annual buying show and other association needs.

Mississippi Building Material Dealers Association is conducting a delivery policy survey among its members.

They are asking dealers to send information regarding delivery charges or minimum sales lor lree delivery to the association office. Results will be printed in their monthly newsletter.

MBMDA is preparing the program lor its 65th annual convention and building products trade show, Feb. l4-16 at the Royal I)'lberville llotel, lliloxi.

Louisiana Building Material Dealers Association is warning its members that more than 40 Louisiana businesses were found in violation of child labor laws during investigations by Operation Child Watch of the U.S. Labor Department with fines totaling $260,000 imposed.

To avoid being cited for child labor violations, dealers must comply with child labor regulations controlling the hours during which employees under l6 can work and restricting employment in hazardous occupations for those under 18. Those 14 and 15 can work no more than three hours on a school day with a limit of 18 hours in a school week, no more than eight hours on non-school days such as holidays and summer vacation with a limit of 40 hours a week. They can not work before 7 a.m. or after 7 p.m. except from June I to Labor Day when the time is extended to 9 p.m.

Employees l6 and | 7 can work in any job except those considered hazardous including operating most power driven equipment and driving commercial vehicles.

LBMI)A will hold its l99l convention in Lafayette, March 7-10.

Mid-America Lumbermens Association installed new ofTicers including vice presidents, dealer directors and associate directors lrom Arkansas and Oklahoma.

Ben Mayo, Mayo Building Supply Inc.. Bentonville. Ar., was elected second vice president. Arkansas dealer directors are David Churchman, Moore & Cone Lumber Co., Inc., Newport; John A. Davis, Whit Davis Lumber Co., Jacksonville; James Terry, Mechanics Lumber Co., North Little Rock, and Don Thompson, Barton's of Pine Bluff, Pine Bluff.

Robert Henkle, Grand Country Homeworks, Grove, Ok., was named third vice president. Oklahoma dealer directors are Henry Bockus, Gordon White Lumber Co., Oklahoma City; David Heien, Marlow Lumber Co., Inc., Marlow; Gary Ketcham, H.E. Ketcham Lumber Dealers, Muskogee, anh K. C. RothschoplJr., Lumber Mart, Guymon.

For the first time in the association's 103 year history, five associate directors were elected to the board. They include Dave Bond, Cedar Creek Wholesale lnc., Broken Arrow, Ok., and Harris Kimbell Jr., Curt Bean Lumber Co., Glenwood, Ar.

Kentucky Lumber and Building Material Dealers is previewing activities planned for the l99l convention.

On Wednesday, Jan. 23, all registered convention guests will be invited to a free luncheon featuring Carl E. Hurley, the former Eastern Kentucky professor who is called America's funniest professor. Following luncheon, roundtable discussions will be held with Pete Pence as moderator on the topic "Variable Pricing and Competing With Chains."

Entertainment Wednesday evening will be a dinner cruise on the new Star of Louisville, according to Billy Thompson, executive vice president.

On Thursday, Jan. 24, the educational session will feature Al Walker from 9 a.m. to 12 when another free luncheon will be served. The exhibit area will be open from I to 5 p.m. One of the features of the exhibitors will be special selling sessions conducted in the middle of the display area,