Building Products Digest - December 1982

g Serving the

markets in 13 Southern states

THE PERFECT PRODUCT FOR A ROTTEil iIARKET.

There's one bright spot in today's otherwise gloomy lumber market. Pressure treated lumber. DIYer's and remodeling contractors are eating it up. Primarily because the bugs, mildew and termites won't. It's become the smart, economical choice for all kinds of outdoor projects. And now you have a major

new source to work with.

Louisiana-Pacific. We're taking high quality Southern Pine from our own forests. Giving it first rate treatment in our new high-capacity facilities '; at New Waverly, Texas and Marianna, Florida. And

making immediate delivery from our own fleet of

trucks.

So now you can give customers the treatment they've been asking for: L-P Outdoor@ Wood for decks, patios and fences. To say nothing of L-P Wolrnanized@ lumber for sill plate. And pressure treated landscape timbers.

Thke advantage of a rotten situation. For all the details, call (713) 273-1131in Conroe,Texas or (904) 592-8512 in Marianna, Florida.

#s ffi Louisiana.Pacific

lumber & building supply

Auditing Your Advertising Gan Save You Lots 0f Bottom Line Dollars and Produce More Gustomers

If you're satisfied with the look, and the results of your advertising . if you're satisfied with the a.mount of time and method in which you produce your advertising . . . then don't bother to read any further. But, ifyour ads appear tired and your traffic count is down, and the guy that prepares the ad is constantly complaining he doesn't get the right information from the guy who buys the merchandise, and the newspaper is stll/ making errors, and you don't have the right product illustration when you need it, and you never seem to collect all the co-op dollars that you've accrued then read on!

I love retail advertising. I've been involved in it throughout my business life. My early training along Madison Avenue was servicing major retailers. I was also the advertising director of Masters, Inc., the first giant discount store. As Executive Vice President of Group Promotions, Incorporated, I worked with 32 different retail clients. For 13 years I was the Director of Sales Promotion for Forest City in Cleveland and since 1973 l've been helping large and small Home Centers revamp their advertising procedures. So, I bring a lot of Home Center merchandising and advertising know-how with me when I visit with you and review your advertising. Together, here's what we'll audit:

o The compatibility of your advertising "look" with your showroom "look."

a The role of the merchandiser (buyer) and advertising.

o Advertising function as it relates to your long range plans.

a Communication-letting everyone prepare for the advertising results-(The sign maker, the store manager, the department manager, receiving, the sales personnel).

O Measuring the results of your advertising.

o Allocating the proper merchandise mix in your ads.

o Appealing to the casual do-ityourselfer, the dedicated DIY'er and the professional.

o The effectiveness of electronic and other media in your market.

o The sales potential for tabloids and booklets.

o How to make an advertising checklist work.

o Effective total saturation without overkill.

o Soliciting and administrating cooperative advertising funds.

o Public relations and publicity as a function of advertising.

o The advertising bookkeeping procedures.

o The inability of utilizing in-house ad making andlor signing equipment.

o The direct and collateral responsibilities of the advertising personnel.

o The advertising job description and skill requirements.

o Advertising production resources.

o Overlap of responsibilities.

o Advertising personnel in-store responsibilities.

O Provisions for last minute ad changes.

o Institutionalizing the copy.

o Making the product's value come through the newsprint.

o Selling "benefits" highlighting "features. "

o Using color effectively.

o Attracting women shoppers. Does it seem like a lot to cover in a one day visit? Well it is. We'll both be exhausted by the end of the day. I know because I've been through it so many times before.

Your Job Will Just Begin

Within a week after my visit you'll get a copy of my notes. My job will be over . . . but maybe yours will just begin.

"Let me reYlow your adYgrtlsing"

Through my experiences, I'll b€ able to demonstrate how to make your advertising functions run more smoothly, be more cost effective, and more sales productive. But it's you who will have to implement the programs that we both agree are necessan/. I guess I mean this as kind of a warning. Yourresponsibility doesn't end when you call me to come visit your operation. It reaily Dqgr'rrs when I leave.

Home Center retailers are allocating approximately 290 of the gross sales for advertising. That's a lot of bucks that come off your bottom line. If they're not working hard for you, you're losing the most effective force you have to increase your traffic and your penetration in the market. Find out now if you're really maximizing the benefits from your advertising.

Phone me today and let's set an appointment for your Advertising Audit. The fee is only $9(X) plus travel for the audit and report. You'll probably recover that amount in production economies and co-op rebates after the first month.

When dealers compare computer systems their overwhelming choice is Dataline.

The underlying reason is that Dataline understands the complexities of your business. We speak gour language. Direct, results-oriented dealer language.

Unique among computer companies, Dataline has specialized for over eleven years in designing only programs to meet the special needs of building supply and home center customers. We start by helping you ask the right questions, by exploring the various aspects of your business, by identifying problems and opportunities. Only then do we begin applying the flexibility of a Dataline svstem.

And we don't stop there. Working with your staff, we make sirre that every piogram is running smoothlg, efficientlA, profitablg.

The results? It is commonplace for Dataline users to reduce inventorv levels bv as much as 157", double product turnover rates, double collection of finance charges and increase gross margins by as much as 5 percentage points (and sometimes more).

It is also commonplace for dealers to achieve payback on investment within eight months of operational startup.

A California dealer uncovered all the answers he needed when 45 of our customers responded to his inquiries. He now relies on his own Dataline System.

Shouldn't you be considering a Dataline Computer System, too?

I Send for the complete Dataline storyJust fill in i this coupon and mail today:

n Please send me Dataline literature.

I Please have a Dataline representative call me

Computer Systems for Bulldlng Supply Dealers/Home Centers

4 Danbury Road, Wilton, CT 06897 QO3\ 762-2473

Publisher David Cutler

Editor Juanita Lovret

Contributing Editors

Dwight Curran o Gage McKinney

William Lobdell

Art Director Martha Emery

Strff Artist Nicola O'Fallon

Cjirruletion Kelly Kendziorski

Building Products Digest is published monthly at 4500 Campus Dr., Suite 480, Newport Beach, Ca.9266O, phone (714) 549-8393 by Cutler Publishing, Inc. Advertising rates upon request.

N)VERTISING OTTICES

FR(M TTIE Y)UTHEAST & OXLA.

HOMA: contact Timothy J. Nclson, Marketing Communications, Inc., 5ll5 So. yaldrlia, suite E, Tulsa, Ok. 74135. cdl (918)4968777.

FROM TEXAS, II)IJISIANA, MISSI$

SIPPI, YIRGIMA, TENNESSEE, N. CALIF0RNTA AND OREGON: contao Drvirl Cu0cr, 45fl) Campus Dr., suite 480, f.Iewport Bcach, Ca. 92ffi. C-all (714) 5498393.

FROM THE MIDWEST: contact Cbd.s L. Lcmpcrly, 1230 Brassie Avc., Flosmoor, ll. ffi22. Call (3 12) 7992166.

FROM SOUTHERN CALIFORNIA: contact Crrl Vrnn. 205 Oceano Dr., los Angeles, Ca. 9(D49. C-all (21 3) 472-3 1 l 3 or (714) 549-E393.

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BI.JILDING PRODUCTS DIGEST is ot independantly-owned publbation for the rctail, wholesole and distibution levels of the lumber and building supply markets in I3 buthen gates.

A steely resolve

THE TIMES are tough for many and likely to I get worse before they get better. Yet, as we go further into this cold winter, we are struck by the determination that so many exhibit in the face of daunting economic prospects.

These are men and women who have been through many tough business times before. Yet now, in those worst hurt by the relentless pressure of an economy writhing and wrenching back from the brink of catastrophe, a new resiliency is being seen.

It is a spirit of which the industry and the country can be proud. It is the never-say-die courage that is embodied in the nation's heart and soul. Our people are not about to give up. They haven't in the past and they won't start now. Some way, somehow, the steely resolve to last until the sunshine of tomorrow's economic morning is increasing.

Determination alone won't bring everyone through. The cold, unbreakable facts of a profit

and loss statement will win over will power everytime. But the components of that P&L can and are being affected by the intelligence, adaptability and perseverence of those who just won't give up.

New targets are eyed, ideas from off the shelf (and sometimes off the wall) are thrown into the breach to keep the body corporate alive.

Some will fail. The tragedy of bankruptcy will befall some before there is an escape from the present valley. For those firms that somehow survived as long as they did, we extend our admiration and understanding. We know they did all they could; that they fought on till the end was inevitable.

Most will make it. Bolstered by the American spirit of perseverence and a new understanding painfully wrung out of severe economic times, the survivors will be far better companies than they have ever been before. For them, the better economic times that will surely come will truly be a golden era.

DAVID CUTLER publishel

Louisiana Dealers to Meet

Louisiana Building Material Dealers Association members will meet at the Royal Sonesta Hotel, New Orleans, La., Jan. 27-30.

Congressman William Tausin and Dave Dixon are among those who will address the convention. The Pence Brothers will conduct an educational session "Why Didn't I Think of That."

A board of directors meeting, numerous industry sessions, a president's reception and banquet are included on the agenda.

Morrow Heads SFPA

William I. Morrow. International Paper Co., Dallas, Tx., is the new president of the Southern Forest Products Association.

Harry N. Williams, Williams Forest Products, Cleveland, Tx., retiring president, is now chairman of the board.

Others elected at the Oct. l0-12 annual meeting in Houston, Tx., are James Bibler, Bibler Lumber Co., Russellville, Ar., v..p.; Henry H. Holubec Jr., Temple-Eastex, Diboll, Tx., v.p.-treas.

Executive committee members include J. Greeley McGowin II, Union Camp Corp.; George H. Seago, Westvaco Lumber; J.M. Tolleson Jr., Tolleson Lumber Co.; J.T. McShan Jr., McShan Lumber Co.: Ben C. Stimpson, Gulf Lumber Co.; Richard Molpus, Molpus Lumber Co.; John Shealy, Willamette Industries; John E. Anthony, Bearden Lumber Co.; J.C. Dellinger, Pinecrest Lumber Co.; Elliott Dean, Dean Lumber Co.; Ronald Paul, Louisiana-Pacific Corp. ; R.A. Carson. Crown Zellerbach: Robert Kreitler, Champion International Corp.; J.E. Stevens, Kirby Forest Industries: R.V. Warner. Potlatch Corp.; W.E. Windham, T.M.A. Forest Products; John Wishart, Georgia-Pacific Corp.; Clayton A. Barns, Willamette Industries; Loren H. Lamb. G.M. Stewart Lumber Co., Inc.

for 1982 by the Lumbermen's Club of Memphis.

The J.S.P. Wilson trophy, named for a prominent hardwood lumberman and originated by his son, Charles F. Wilson, president of Wilson Lumber Co., was presented at the annual Loggers' Breakfast at Mud Island, a kickoff for the 20th annual observation of Memphis Wood Products Week sponsored by the club. Henry W. Jones, board chairman of Cathey-Williford-Jones Co., l98l lumberman of theyearand chairman of the 1982 selection committee, made the presentation.

Cockroft is a past president of the Southern Hardwood Lumber Manufacturers Association, the Memphis Hoo-Hoo Club. the Tennessee Forestry Association and the South Central Hardwood Club. A trustee of the C.M. Gooch foundation. he also has served as director of the National Hardwood Lumber Association and v.p. and director of the Lumbermen's Club of Memphis.

Cockroft Named'Lumberman' Robert S. Cockroft, president of Southern Star Lumber Co., McKenzie, Tn., has been selected as Outstanding Lumberman of the Year

Next Issue: Complete coverage National Lumber & Building Material Dealers Association convention.

1983: a better year for home centers

II'HILE the UU mediocre short-term indicators for the home center industry, particularly with regard to housing, have been discussed at length in the media, we feel the need to stress the "positives" of this expanding industry right up front. Its past and continued growth can be attributed to several favorable economic, environmental and social factors, the most important of which follow:

Favorable Factors

(l) The age of the housing stock increases the need for repairs and improvements, while the in-

By Frank lY. Denny President, Home Centers Division W.R. Grace & Co.

Story at a Glance

PosltlYe factors regardlng home centers outwelgh the negallves... costs wlll Inhlblt future home conter bulldlng... competllion wlll put more prossure on gross margins and operatlng expenses.

creasing cost of new housing encourages people to maintain and upgrade their existing homes. The median sales price of a new single family house rose from $48,800 inl977 to approximately $72,000 in 1982, for an increase of 8.190 annually.

(2) The 254 year old age group, with prime emphasis in the 35-44 sector, which represents the target customer, will g;row approximately 2.890 and4.lo/o per year, respectively (1982-1987), compared to the total population growth of l.l9o. The annual growth rate for the 2544 year old age group in the South is forecast at3.3tlo.

(Please turn to page 36)

A Year of Transition

By Ronald P. Hogen Vice President Distribution Division

EOR South- F ernbuildingproducts dealers, 1983 will be a year of transition. Next year should see the beginning of a sustained recovery from our industry's worst depression in memory. And confirmation of market trends we have seen developing the past three years.

We expect some very good housing years in the 1980s, perhaps beginning as early as next year. But wethink our

Georgia-Pacific Corp. Atlanta. Ca. industry's environment has changed -permanently. Georgia-Pacific is working to help dealers service a market very different from the 1970s, a market in which commercial and industrial construction, repairs and alterations and non-residential construction will rival housing in importance. And a market in which multi-family housing and smaller, attached single family homes will win greater acceptance.

We will likely see a return toward a more traditional housing market in the next few years, but with added demand from the40million people who will enter their prime home-buying years during the decade. Housing

will be purchased more for shelter and less for investment. Homes may be smaller and cost more. But

(Please turn to page 33)

Story at a Glance

Southern houslng starts wlll exceed 750,000 a 25% hlke from '82 . . &% of the U.S. nonresidentlal bulldlng wlll be in the South more remodel. ing and rehabol existing struc. tures.

Industry must adapt to change

By Ed LeBlanc Senior Vice President Sales and Marketing Macklanburg-Duncan Co. Oklahoma City, Ok.

lT'S NO secret

Ithat our business has chang- ed, and that many companies had a rough year during 1982. However, there is light at the end of our tunnel, and reason for optimism.

Economically and socially, our country has undergone tremendous change. The days of Mom and Dad, three children and one dog in a large house on a large lot may well be over except for the very wealthy. Money became tight, then tighter, and probably will remain tight for the foreseeable future. The family has changed. According to the Federal Census Bureau, nearly 5090 of the children in our country are being raised in a single-parent home. Families are having fewer children.

Homes that are being built are of smaller construction, with tremendously increased energy efficiency "designed in." Those who are living in older homes are as much concerned with upgrading the energy efficiency of the dwelling as they are with the floors or plumbing. The building materials industry will have to adapt to few housing starts, and smaller houses being built.

On the other side of the coin, however, a new direction has come to light. Do-it-yourself customers are not just buying caulking and weatherstripping. They are seeking out the best caulking and weatherstripping, and they're willing to pay more for better quality in terms of ease of application, product life and product quality.

We've seen the dawn of a new day in sophistication in our industry in the major retailers, and these new tools for buying, inventory control, sales, marketing and retailing are now being seen with more and more frequency in the one or two store retail operations. The smaller stores, like the chains. are more interested in turns, dollars per square foot, and the like.

And most important, we at Macklanburg-Duncan see the beginning of a new turn around in our economy,

Story at a Glance

New economic turnaround has begun gaining economic strength in the South. area should lead the nalion . increasing retailer sophistication. quality more important than price.

and a demonstration of the economic strength in the 13 Sunbelt states. Geography is not and will not be a panacea for all economic ills, but the South and Southwest should lead the nation economically.

We've seen strong growth begin

in the fourth quarter and we're bullish on 1983. But it will be product quality and product value, less than product price, that will determine sales success.

Those of us in the producing ends must continue to be more aware of the needs of our retail customers as they try to reach the ultimate consumers of our goods. We must continue to ask ourselves: "What can we do to make their job easier, their efforts more successful." And the companies that do a good job of working with retailers, either chains or single store operations, will be the success leaders of next year and the years to follow. Lip service to dealer efforts will not be enough. Pricing programs, customer incentives, coop, the whole gamut of intelligent dealer programs, will make the difference.

It will be the partnership that has been forming between manufacturers and retailers that will be the growth stimulus for our industry. Manufacturers in 1983 and the following years will realize that the retailers will be the channel of distribution to the ultimate customer-the retail shopper.

'83 can be best year since '79

By Arnold A. Dill Senior Vice President Chief Economist The Citizens and Southern National Bank Atlanta, Ga.

IIY BASIC

IUI outlook for 1983 would be based on the following assumptions: that the Federal Reserve permits the basic money stock to rise about 6slo in 1983, similar to its increase in 1982; that Federal Government spending will increase about 990 in 1983 compared with 9.590 in 1982; and that the federal deficit will be around $155 billion in calendar 1983 versus $142 billion in t982.

These monetary and fiscal policy assumptions should be consistent with agrowth intotal spending (GNP in current $s) next year between 790 and 1090, up from about 4VzVo in 1982. Real output of goods and services should grow 2o/o to 390, compared with a l.5o/o decline in 1982. The overall inflation rate should be 5 to 6u/0. After trending downward

sharply during 1982, interest rates will tend to level off or decline only gradually next year. However, since rates declined sharply during 1982 and are ending the year far below peak levels, interest rates will average between 2 and3Vz percentage points lower in 1983 than in 1982.

The above economic assumptions would also be consistent with a further recovery in the housing industry next year. Starts would increase from an estimated 1.03 million in 1982 to around 1.40 million in 1983, or an in(Please turn to page 2l )

Story at a Glance

lnterest rates between 2-31h"/o points lower housing starts up 35% . . wholesale lumber and wood prices will rase 6% to 9o/o . . . recovery beneficial for the South.

Promotion pays off

By Keilh Lanning Executive Vice President & Ceneral Manager California Redwood Association

II\4ERICANS

Ilspend over

$50 billion each yearonhomeimprovement and that figure has been growing while the housing industry is at a standstill. Though there is strong competi- tion in the home improvement market, redwood holds a unique position as a result of over 70 years of promotion by the California Redwood Association.

In 1983, California Redwood Association will accelerate its promotion to the growihg home im-

Story at a Glance

More redwood promotion planned home improve. ment market is important target... redwood involved in new tv. series on remodeling.

provement market while continuing to promote all uses of redwood to architects, builders and consumers. Studies have shown that manufacturers who promote and advertise during poor market conditions can increase their market share and re-

tain this advantage when conditions return to normal.

Soon, do-it-yourselfers will learn about a variety of redwood remodeling projects on the national PBS-TV series "This Old House." This popular series follows the complete renovation of a home and is aired by over 250 stations of the Public Broadcasting System. This season, CRA is working closely with the series producers as they demonstrate some of the many uses of redwood inside and out of the house.

One of our primary concerns has always been to provide redwood retailers with the finest sales tools in the building materials industry. We will continue to provide the highest quality advertising, publicity, literature and promotion for redwood during good times and bad.

If you are selling redwood, you're not out there selling it alone. There's a group of professionals working daily to tell your customers about redwood's beauty, performance and uses. Redwood has a pre-sold status.

Hardware industry risks are financial

By Valerie Caldwell Manager, Marketing Planning Schlage Lock Co.

EXT year combines the traditional crisis elements of risk and opportunity. The door hardware industry in particular will be walking this narrow dividing line for most of the year. The key to success will be identifying exactly what the risks are and where the opportunities lie.

The risks facing the industry in 1983 are primarily financial. While the cost of credit remains high, inventories will continue at low levels. The volatility of interest rates will dampen any renewal of confidence. With bankruptcies forecast to be at a record high in 1983, everyone should approach his business with an air of caution.

Ignoring changes in consumer needs is a risk. Quality is increasing in importance. People are staying longer in their homes and as they invest in d-i-y and remodeling projects they want things to last. They will pay more for quality, but only to the extent that they feel they are getting good value. In 1983 watch carefully

as the market pushes further away from the traditional "good-betterbest" buying attitude, and settles at the "good" and "best" ends.

Those parts of industry prepared to look to less traditional areas could be the ones to come out of '83 as the winners. We are going to be operating in a "fast track" world. That means having the right product in the right place at the right time. The builder could well be looking for non-traditional sources of supply as his lead times shorten up, i.e. retail outlets.

There is an increasing pull towards two step distribution as more retailers see the value of going through a wholesaler. The benefits

Story at a Glance

Volatile interest rates will dampen confidence.. record number of bankruptcies . . more two step distribution. . hardware retailing up 5o/"-8a/o more builder buying from retailers possible.

include fast turnaround on orders, single sourcing, better overall discounts and less need to carry inventory. Careful examination of gross return on margin investment often brings surprising answers.

The female consumer, long a strong influence on d-i-y purchases, is becoming an active participant in the market. The DIY Research lnstitute estimates that 3890 of "home improvement and repair d-i-yers" are female.

1983 will see a growth in hardware retailing; forecasts vary from 290 over 1982 to as high as 1690. Somewhere in the 5-890 range seems a likely outcome. National Retail Hardware Association 1982 Marketing Surveys showed 7.2t/o of all hardware retailing outlets as feeling "very optimistic" about 1983, and 46.20/o are feeling "moderately optimistic."

Every part of the industry-manufacturers, wholesalers, retailerswill be forced to work together, becoming partners in success. Competition at all levels will be leaner and meaner. We need survival management techniques-but there are opportunities in the market for those who are prepared to go after them.

Cost & supply of mortgage money a key

By Grady R. Haynes Haynes Brothers Lumber Co. Murfreesboro, Tn.

URING the past

three years all of us who are a part of the shelter industry have been made painfully aware of how much our own individual businesses are affected by the cost and supply of mortgage money. Therefore, any forecast about our business must be clearlv attuned to that subject.

Even at today's reduced interest rates, the level of success that we can expect in our communities will depend to a large extent on how well our local financial institutions utilize the new and innovative mortgage instruments that have become available during the past several months.

Now. what can we do as retail

Story at a Glance

You'll have to make your own business increase. lower interest rates mean more home buyers. replacement items a growth market . . . new financial instrumenls must be mastered.

lumber dealers to make sure that these new type loans are made available to our customers?

(1) Take the time to educate yourself thoroughly about all types of mortgages being offered in your nearest metropolitan market by visiting with leading realtors and mortgage brokers.

(2) Make regular visits to the heads of all financial institutions in your community. Find out what type of loans they are offering. If they are not now in the mortgage broker business, encourage them to set up a mortgage brokerage department to process all types of loans, especially those that make use of the secondary money market through such firms as FNMA. They should all bemaking FHA and VA loans and, by all means, processing the below market rate loans financed bv

the housing finance agency in your state.

I think that we can look forward to a very substantial increase in business nationwide for our industry in 1983. How much of that increase we get in our business will depend largely on our own efforts. The demand for housing should be very good and the lower interest rates expected will increase the pool of eligible buyers.

The sale of replacement items should continue to substantially increase during the coming years. Such big ticket items as roofing, carpet, and other floor covering, windows,

exterior door units and appliances wear out and must be replaced. Since they are usually replaced one item at a time, they may be overlooked when we are making our usual remodeling sales effort. The sale of energy efficient windows and metal clad exterior door units has been growing so fast that some leading manufacturers of metal clad door units have had a hard time meeting the demand for their product this past year.

Indeed the future looks bright for our entire industry-especially for those of us who will get out and work to make something positive happen.

Housing to lead industry gains

By William H. Stimpson President National Forest Products Association Washington, D.C.

rfHE manu- t facturers and marketers of wood products should be able to start catching up with the severely suppressed demand for theirproducts in 1983, if the forecasters are correct. While no one is predicting that housing will be at the record levels of the 1970s, indications are that home building will make a respectable rebound.

Virtually all forecasts for housing paint an optimistic picture, and this optimism is based on something more than wishful thinking. This time, all-important interest rates are lower. Housing starts are up. And manufacturers, wholesalers and retailers are gearing up for increased business next year. This atmosphere of cautious confidence is, in my opinion, well-founded.

Dependent as it is on long-term financial commitments, housing needs, above all, a stable economic climate, which now appears to be more than a possibility. There is continuing progress against inflation, a

favorable outlook for food and energy prices and wage settlements, and a shift toward somewhat easier money by the Federal Reserve Board

All of these positive factors are bolstered by the existence of the undeniable demand inherent in the so-called post-World War II baby boom bubble in the nation's population mix-a generation of potential home buyers who will need housing in the 1980s.

How much improvement can we expect in the next twelve months? The nation's forecasters are close together in their predictions for something more than 1.3 million housing starts next year, a figure representing a 300/o jump over this (Please turn to pase 33)

Story at a Glance

Lower interest rates likely . . . loan applications up 1.3 million plus housing starts 280,000 mobile homes increased re. modelang, counter sales.

Rail & truck transportation face changes

By Paul McQuiston Executive Vice President Southern Hardwood Traffic Association Memphis, Tn.

'IUMULAYTIVE railroad statistics for the first 4l weeks of 1982 show a decrease of 41.2s/o in rail carloads of lumber and wood products, exclusive of furniture, loaded and received compared to l979 statistics for the same period.

What can we expect in the way of transportation bargains or new concepts for the movement of our lumber and related wood products for the balance of the 1980s? On the immediate horizon is the possibility that all boxcars will be deregulated so that they can be handled in much the same manner as the TOFC/COFC traffic. The ICC is expected to rule early next year on such a proposal.

With the railroads' privilege of signing confidential contracts with shippers, shippers' agents or shipper associations, we expect the railroads to continue to offer refunds or allowances under certain circumstances where excess equipment or capacity warrant such action. Of course, the shipper or shipper's agent who is able to sign huge volume contracts will enjoy lower rates and better service.

As the economy improves, we can expect an ever-increasing shortage of truckers. We can also look for an increase in freight rates, as the traffic will justify, and as fuel costs begin to creep up agaln.

On the other hand, we can expect the railroads to concentrate more of their efforts, technology and finances on hauling piggyback and contain-on-flat car freight, going more heavily to the "hub center" arrangements, with hauls beyond these hub centers made by either railroad owned truck lines or truck service negotiated by the shipper or shipper's agents.

The stability of freight rates for like distances between the same territories by railroads, as well as the close similarity of mileage rates between truck lines, is not likely to be maintained. There is a great clamor by the large truck lines and by the Ad-

ministration to remove the economic regulations from the motor carriers so they can compete on the same basis with the railroads as to TOFC/ COFC traffic. We can expect consideration and action in the 98th Session of Congress.

We should also expect Congressional action on the establishment of

Story at a Glance

Deregulation & legislation factors.. . ICC to remain.. new modes ol operation bargains for the knowledgeable freighl rate increases.

nationwide maximum lengths, widths and gross weights of trucks and trailers over federal highways. More and more talk is being heard as to the sunset of the Interstate Commerce Commission; however. we would expect this to be beyond the 1980s. We can also expect shortages from the railroads, with increases in

their freight rates, because of the stockpiling of unneeded equipment, including motive power units. They will be reluctant to pull out this surplus equipment and spend the money necessary to re-equip or put it in service. With the lack of regulations in many areas, the ICC will have less authority to invoke emergency measures in times of car shortages, as it has in the past.

ln conclusion, I predict that (l) railroads will place more emphasis upon their unregulated transportation, TOFC/COFC traffic, merchandising it wholesale fashion to the shippers with huge volume traffic or agents with unlimited ability to consolidate and enter into large volume annual contracts, and as such, in competition with the truck lines, we will witness some over capacity in equipment, with some inefficient empty backhauling;

(2) the ease of entry into the trucking business will continue, while trucking, in general, will ultimately be exempted from regulations, thus bringing greater competition where the volumes command it, wasted backhaul transportation and an increase in rates and charges, as the cost of fuel increases and economic conditions improve;

(3) the challenge for shippers and receivers of lumber and related wood products to change their patterns of operation, loading techniques and marketing concepts, will be great, as the bargains in transportation may favor the TOFC/COFC concept in the future; (4) combinations of services will be increasingly attractive.

Good managers will continue to survive

By Doug Ashy President National Lumber and Building Material Dealers Association Washington, D.C.

rlHE PAST

I three years have been the toughest I can remember for the building material dealers and suppliers. There have been many closures. The survivors are evidently good managers.

These successful dealers will continue in 1983 doing the things that

have made them successful.

(l) Divenify and chonge to serve your market

This may call for your sales to be all contractor, all consumer or a configuration of these. Consider remodeling, millwork, components, trusses, concrete, picture framing, building contractor or whatever your market dictates. The key is to know your market.

(2) Keep up with your industry. We are in a fast moving industry and there is no doubt that if youdonot attend industry meetings and stay ac-

tive, your business will suffer. What are the latest techniques in purchasing, inventory control, accounting, pricing, personnel training and compensation, selling, advertising, security, equipment, financing, etc.?

Story at a Glance

Good management techniques vital to survive tough times... dealers must unite for protection .you must make it happen. We must be experts to run a successful business.

(3) Manage wisely. Are each of the above items professionally executed? Prepare a budget. Have an accurate monthly statement you can use to measure your business, pointing out your weak and strong points. Make sure you are getting maximum productivity from your staff. Good communication between employees and management is a must. A regularly scheduled personnel meeting is important in maintaining communications. If yours is a consumer yard, do you know what consumers are looking for? Contractor yards should be knowledgeable in proper techniques for maintaining their trade.

Let's look at a few other ingredients that affect our business.

It is imperative that we building material dealers stick together and fight for or against legislation. The only way to do that is through our National Lumber and Building Material Dealers Association and its federated affiliates around the country. We must be united!

My belief is that we will see our economy improve in 1983 and that 1984 will be an excellent year for our industry. Let's do some planning, be cautious, keep up with our industry, stick together, and manage wisely, so we can reap the benefits of a better future.

Let me share these words of wisdom: There are three types of businessmen-the kind who make things happen, the kind who watch things happen, and the kind who wonder what happened.

1983 can be a good year

By William R. Ganser, Jr. Executive Vice President Southern Forest Products Association New Orleans, La.

A:li*,"TI;

of sour grapes, don't be surprised if 1983 turns out to be a pretty good year for selling lumber. Not a vintage year, but one that will leave lumber dealers with a good taste.

Housing starts next year won't be spectacular. Most analysts think the downturn in interest rates will result in somewhere between 1.3 and 1.4 million starts in 1983. Not the best numbers, but not the worst either.

Even more housing starts might be recorded next year in view of the November election returns. There's renewed talk about a jobs bill, and that could very well include a stimulus for homebuilding.

So residential construction in 1983 should be on the upswing, and possibly post a surge later in the year. More than half of those starts will be in the South.

What kind of starts are they likely to be? Experts say the strongest gains in homebuilding next year will be made by single-family houses and condominiums. But at the same time, we know that there's a trend to build smaller dwellings in order to make the sales price more affordable. With such vectors going in opposite directions, it's impossible to know the net effect on lumber consumption.

Overall, however, next year's residential construction is likely to push lumber sales up by healthy margins.

So far we have been looking only at stick-built residences. We should also look at manufactured housing or what used to be called mobile homes. Growth here has been phenomenal. Last year, factory-built homes accounted for 240,000 or 3690 of allnew single-familyhomes sold in the U.S. That's up from 2590 in the late '70s. Forecasters look for as many as 400,000 units annually in the next two or three years.

Steady growth is also predicted for the remodeling and repair market. R&R ranks second only to new construction in lumber consumption, accounting for 7 billion board feet of lumber in 1980. By paying more attention to the remodeling and repair

consumer. those in the lumber industry can reap a nice profit.

Nonresidential construction typically lags behind the recovery of the residential market. But there are ripe opportunities in "non-res" for lumber dealers if they're enterprising. Wood is increasingly being used in the construction and decoration of churches, restaurants, small office buildings, malls and shopping centers. Total lumber sales for 1983 can be significantly boosted by cultivating the non-res market.

Story at a Glance

Residenlial construction

upswing 1.3-1.4 million housing starts . . . more manufactured housing .."non-res" market ripe pressuretreated, wood systems, overseas sales promising.

Pressure-treated lumber is more and more in demand, be it for decks, patios and fences for remodeling and repair or exposed beams and soaring trusses in the non-res sector. And pressure-treated Southern Pine lumber is in particular demand since it so readily accepts chemical preservatives. The dealer who's savvy about treated lumber will add immeasurably to his sales volume in 1983.

Then there are the burgeoning wood systems, such as Plen-Wood and the All-Weather Wood Foundation. Find out more about the advantages of these wood systems and you'll move more lumber.

Finally, for those who trade overseas, there's the promising export market for lumber, made even more promising by passage of the Export Trading Company Act, which allows companies to get together on joint export activities without fear of antitrust complaints. Southern Pine lumber in particular is finding a welcome climate in the Caribbean, thanks to some aggressive marketing efforts carried out on the islands.

All of these facets of the lumber market, if put together with diligence and enterprise, can make 1983 a year we can savor and point to with pride.

Ashy is the owner of Doug Ashy Building Moterials, Inc, in Lofayette, Lo.,-ed.

Hardwood outlook improved

By S. Carroll White Executive Vice President National Hardwood Lumber Association

lN spite of the Igloom and doom attitudes of many politicians and the negative emphasis placed on day-to-day economic statistics by the press, the facts are that the building blocks continue to fall into place for a strengthening U.S. economy.

All of this is important to the hardwood lumber industry because it is well recognized that as goes the U.S. economy so goes our industry. There is no magic that affects the fortunes of our business. We are not dependent upon scientific breakthroughs and new technology for business improvement in the short term.

Among the multitude of hardwood productsJhe furniture industry is considered to be the great money crop for the industry since that is the

home for the largest volume of upper grade material. Furniture is purchased with discretionary income and anytime that the consumer feels that his future earnings might be affected, adversely, he will postpone his purchases. The same pressures that are placed on the homebuilding industry by inflation and high interest rates affect the sale of hardwood adversely by restricting purchases to the building trade as well as

Story at a Glance

General strengthening ol the U.S. economy will bolster hardwood markels inventory re-building can be expected.. spring of next year could be a boom time for hardwood.

to industrial users. Furthermore, if consumer items are not moving, the tremendous amount of hardwood required for the pallet industry and railroadcrossties is reducedaccordingly. So with the general improvement in the economy that might be reasonably expected, we also might expect improvement in the vplume of hardwood requirements in 1983.

As the U.S economy becomes more favorable and orders begin to pick up, furniture plants, flooring plants, and other industrial concerns will begin to purchase and rebuild inventories of rough material which it has not been reasonable to do for the past two or three years due to high interest rates and low sales volume. When this demand is passed on to the sawmill there might be some surprises in store for the purchasers and some scarcities could well develop because there are large gaps in hardwood mill inventories. The spring of '83 could be a real boom period in the hardwood industry.

Outlook grim for economic growth

By Alan M. Geyle Economic Research Officer United Virginia Bank Richmond. Va.

FIESPITE the decline in rates and Elower level of inflation, real economic growth in 1983 will be just under 290. The consumer will lead the recovery as he has done in the past spurred by lower inflation and reduced interest rates.

The recent uptick in the housing market will continue as mortgage rates fall, but a strong recovery in the housing sector may not be forthcoming. Housing starts may reach just under a I Zz million unit annual rate by the fourth quarter next year.

Businesses will remain conservative next year in an attempt to strengthen balance sheets and improve profit margins. Considering the high level ofunused plant capacity, it is difficult to envision any improvement in capital spending next year.Inflation will continue to moderate, running approximately 4o/o for the year. However, the unemployment rate will remain stubbornly high averaging 9Vz-l0t/o for the vear.

Story at a Glance

No capital spending upturn .. . inllation to run 4o/o ... high unemployment heavy Fed borrowing. . . high mort. gage rates . . . little relief for housing.

A major concern to the financial markets next year is the size of the Federal deficit. Despite an estimated $26 billion revenue gain from TEFRA, I expect the Treasury to raise at least $175 billion in new money next year. This tremendous financing requirement of the Treasury, however, should not prevent a further decline in interest rates in 1983.

The level of Treasury financing will place some upward pressure on rates, primarily because the Fed cannot be expected to "monetize" the

debt as it has done in the past. However, further declines of lVz-2 percentage points are very likely throughout the course of the year. The prime rate should droptol0Vzslo and Treasury bills may drop as low as 6Vzs/0. Rates may drop lower if the Fed decides to become more stimulative, but that may be too optimistic. With the basic conditions I have outlined here, a strong housing recovery should not materialize although some factors will improve. Financing will be the key to home affordability as it has been in the past. Mortgage rates will fall as the economy flounders, but they will be held to historically high levels by: (1) heavy Treasury borrowing draining away funds from the private sector and (2) continued reluctance by banks and savings and loans to extend low cost money for long term mortgages. one final factor in housing demand next year is that with the more competitive interest rates for savers, many consumers will choose to postpone major purchases.

Railroad adapting in a deregulated world

By Richard C. Grayson President and Chief Executive Officer Burlington Northern Railroad

T['"",,tlT|fr:

ern Railroad has long been a hauler of the nation's forest products. Two ofour predecessor lines, the Great Northern and Northern Pacific, opened up vast timberland resources in the Northwest to an expanding nation during the late l9th century.

Today, our railroad is the nation's largest rail carrier of forest products, in terms of revenues and sales. Forest products normally account for about 20a/o of our non-coal revenues each year.

Our state-of-the-art transporta-

Story at a Glance

Deregulation's eflect on pricing . . an uptum in April or May if interest rates do not increase . . smaller housing units a gradual economic increase.

tion network is useless unless it meets the needs of its shippers, efficiently and economically. Helping us to do so is today's less-regulated transportation environment.

These changes have enabled BN Railroad to "venture into uncharted transportation territory" in an effort to become more responsive to individual customer needs.

To date, we've negotiated 25 rate and service contracts. Our customer is guaranteed a stable rate level and car supply; we're guaranteed a certain traffic volume.

Lumber reload centers combine energy-efficient, long-haul rail transportation with flexible, doorto-handle truck delivery, and BN Railroad has designated three independently operated centers: Sioux City, Ia.; Harvard, Ar. ; and Chicago. Attractive rail car rates compete with comparable truck rates, giving shippers another transportation option for their forest products shipments.

We're working with the plywood

industry to increase bundle size, which will increase car capacity by as much as 2090. We're selectively disengaging from business that we cannot haul efficiently or economically.

We've the freedom to adjust rates more quickly-as the marketPlace demands. For instance, last April we announced truck-competitive rates on lumber, plywood and particle board shipments that we feel saved shippers an average of $400 Per carload.

High interest rates and a nationwide recession have devastated the U.S. construction industry, which last year weathered its fourth con-

secutive year of depressed prices and slack demand-some say its longest and deepest recession since the Great Depression. Recovery won't come overnight.

If interest rates remain at current levels, we expect a slight upturn in April or May, as construction gets underway.

Housing starts this year could reach 1.3 million, although much of that will be the smaller housing units and condominiums. We expect a gradual recovery in the industry for 1983, as lower interest rates prompt a release in the pent-up home building market.

Pick your Pac-Man machine and expect a better 1983

By Pete Niebling Executive Vice President North American Wholesale Lumber Associa tion

lN the fourth I quarter of 1982, the dialogue, discourse and rhetoric re- garding our economy and our forest productsindustry increases with each passing day. Left-handed economists disagree with the righthanded while politicians do those interesting things related to election years. It results in a good news-bad news environment every minute of every day.

The ubiquitous video star PacMan says it all: If you are persuaded that inflation and low productivity rates must be corrected, the little "chomper" is the federal and local governments going merrilY along with their overspending. If your view is that high interest rates and unemployment are more serious matters, then Pac-Man is the Fed, the supply-siders and those politicians who lack "compassion."

Looking at the total economy, one can only conclude that pure Reaganomics won't work. In the first place, it has failed because pure Reaganomics was never attempted. Adulter-

ated Reaganomics has assisted in moderating inflation and now seems to be less of a barrier to interest rates. It could also be suggested that productivity is getting better if for no other reason than our current unemployment problem. Unemployment is and will be the problem in the coming months. If North America is to arrive at a robust economy, the unemployment picture must imProve.

We think that there is every possibility for surprisingly better times in 1983 if our leaders in government, industry and labor point their efforts in the right direction. Our view is that "smoke-stack America" will not be able to provide what we need until there is a further shake-out in autos, steel, heavy equipment and even our (Please turn to PaSe 21 )

Story at a Glance

A 2|o/o increase in housing starts in'83... a 10olo'15o/oim' provement in industrial markets possible . . remodeling and d-i-y "soft" in the early months of next year.

SSWXflf t*tK#g$.t1f $fl"tiS*jf i{S..+,jilfiii*iliEiir*iit}'*itil:

The U.S. International Trade Commission has ruled "sufficiency of petition" for countervailing duties on Canadian wood products with the three commissioners agreeing unanimously that their initial investigation has revealed cause for complaint by U.S. producers Dec. 3l is the deadline for a preliminary decision, but because it is a complicated issue, the feeling in Washington, D.C. is it will be at least late March before any action is taken on a tentative duty .. . some wholesalers complain the procedure is acting as an industryembargo...

A series of five tv ads filmed for Scotty's in the Auburndale, Fl., store will air on four Orlando television stations this month . . Hope Lumber Co., Muskogee, Ok., was a "goal buster" in the Muskogee United Way campaign . C & H Luntber Yord, Valley Head, La., maintains a National Weather Service station

Donaldson & Yahn Lumber Co., Perry, Ok., is assisting a local high school construction class with a building project . . McCoy Corp., San Marcos, Tx., is negotiating for sites in six Texas cities, including a fourth location in San Antonio, as well as completing new building supply centers in Rosenberg, Laredo and TexasCity...

P.F. O'Connorhas moved into the Southeast with a 45,000 sq. ft., $2 million building materials center outside Vero Beach, Fl.

Pierre Guidry & Son, Church Point, La., is now a distributorship for Capitol Windows 44 Lumber Co., Calico Rock, Ar., has opened a mill in 56, Ar., causing a wag to comment that the town name should be chansed to 100.

Builderarnc has located the kitchen dept. in the front of its new 30,400 sq. ft. Savannah, Ga., store, using cooking demos to tempt customers wirtz Lurnber and Supply, Inc., Guymon, Ok., celebrated l5 years of business with three generations represented in the management . .

Leesburg (Fl.) 84 Lumber is marketing l2 build-it-yourself precut and panelized home kits the Anterican Forest Products facility, Ft. Lauderdale, Fl., has been purchased by SFM Leasing Co. to be operated as warehouses Sincloir Lumber Co. is a new store in Laurinburg, N.C.

The Caribbean Lumber Co., Savannah. Ga.. received a presidential award for excellence in exporting A Kingland, Ga., office has been opened by Bullet Lumber Co., East Lansing, Mi., Tom Sailorsmgr. . . Culbertson Forest Products is a new firm specializing in redwood and cedar in Dallas, Tx., headed by Steve and Jon Culbertson, formerly with Powell Lumber Co.

Lowe's, North Wilkesboro, N.C., expects d-i-y sales to total 5690 of total projected $l billion volume for 1982. Scotty's Inc., Winter Haven, Fl., sales for the latest period are up l3Vo to $29.7 million.

.

Ra i n b ow, Ma nufact u ri n g, Houston, Tx., a residential skylight mfgr., has been bought for an undisclosed sum bv Naturalite, Inc., Dallas, Tx., John Kemendo, pres. Upco Co. has opened a warehouse in Dallas, Tx., to serve seven states including Ar., La., Ok. and Tx. .

Trus Joist Corp., Boise, Id., will begin construction of a $6.4 million manufacturing plant at Valdosta, Ga., to produce residential products

VIti I la met te Indus t ries has opened a sheathing warehouse to serve the Dallas/Fort Worth, Tx., area in Grand Prairie, Tx., Bill Bolton, Rushton, La., office, handlingsales...

The United Group, Randolph, N.J., has opened a commercial flooring systems sales office in Charlotte, N.C., with new offices for United Surfaces of North Carolina,.Irc., included; Fred V. Palma III, v.p. Southern region, is heading service for N.C., S.C., Tn., Ga., Fl., Al., Ms., La. and Va. Willamette Industries closed its Dodson, Za., plant for six weeks to install new equip ment...

Masonite Corp. earnings improved for the fourth quarter, $3,727,000 vs $1,650,000 GAF Corp.'s 3rd quarter net income was $16.8 million compared to $14.2 million 3rd quarter '81 . Georgia-Paci.fic's sales for first 9 months of 1982 were $4 billion, down from $4.2 billion in same period l98l . . . Jim Walter Corp., Tampa, Fl., had annual net income of $6.1 million, down from $23.2 million last vear .

Fire losses in Tx. of singlefamily homes with wood shingle roofs totaled almost $4 million in 1981, ll0 Texas cities reporting . . Build-it-yourselfers started I 48,000 units in 198 I compared to 12}W started by professional builders The National LP-Gas , ssn. is warning retailers of the potential hazardsto consumers of cabinet heaters improperly using propane gas cylinders .

Oct. (latest figs. available) hqrdwood lumber production in the South was up l9o from Sept. with both orders received and shipments up 2Vo . Southern pine lumber strength continued to grow with the Carolina and Tx. markets most active. softwood plywood was fairly active with particle board moving at a quick pace. .

Dallas Show Near Sellout

More than 9390 of the available space at the Dallas Convention Center has been sold for the National Home Center,/Home Improvement Congress, Feb. 27-March 2. It will feature more than 1,200 exhibitors displaying thousands of do-ityourself products for the home center retailer.

William Fishman, show seminar director and Building Products Dlgesl columnist, said, "The concept for the 1983 show goes beyond the quest for the best in giving consumers value. It also relates to the exchange of knowledge in merchandising, sales promotions, operations and money management for the home center operator and building materials dealer." Thirteen business management seminars are scheduled. Panel chairmen include Ray H. Cooney, pres., Scotty's Inc., Winter Haven, Fl. and Samuel D. Gaddis. national sales manager-dealer distribution division, Georgia-Pacific Corp., Atlanta, Ca.

Southern dealers represented on the panels include Ken Wittekiend, Jr., mgr. of merchandising and sales

promotion, Walker-Kurth Lumber Co., Inc., Houston, Tx.; Larry W. Plotkin, exec. v.p., Dr. Ikes's, Laredo, Tx.; Charles M. Bell, pres., Bell's Do It Center, Donna, Tx.; Thomas

RetailSales Set Record

Home center retailers rang up l98l gross sales of $,14.8 billion, a 19.7Vo increase over 1979's record sales of $37.4 billion.

Do-it-yourself consumers accounted for more than half of this, 56.4s/0, equal to $25.3 billion. Contractors and builders accounted for 33V0.

The 1982 Profile of the Home Center Industry, issued every two years, covers 8,783 firms with26,297 stores.

Home centers spent an average of | .45s/o of gross sales on advertising in 1981. Of this, 6290 for newspaper, about 3090 for radio and direct mail, l09o tv and other media. About 2090 of a home center's ad budget was reimbursed through co-op funds.

E. Dyar, director of loss prevention services, Builder Marts of America, Inc., Greenville, S.C.; David Beene, pres., Alamo Lumber Co., San Antonio, Tx., and August C. Bering IV, pres., Bering Home Center, Inc., Houston, Tx.

Point-of-sale purchase materials and sales events were the most popular promotions with 6490 of the stores using manufacturer supplied materials.

Lumber and building materials accounted for about 5090 of the sales. Lawn, automotive and plumbing sales rose while wood stoves, fireplaces, kitchen remodeling fell.

FEIICE OUTYOURSUPPTY PROBTEMSWITH ELDER WOOD PRESERUI]IG

Quality fencing isn't the only speciahy item that Elder Wood Preseruing Co., offers. We also supply the Sunbeh region with a complete line of Osrnose K-33@pressure treatd wood products.

\Mether it's a truckbad or a mixed load, we provide fast, dependable deliveries of Dimension Lumber, Timber1

Decking and Fence Boards that will help you make a profrt.

ano Eoal1os wtil hetp pro

quality, nobody beats Elder and Osrnose.

Gaddis Cooney

CALENDAR

wii:$:ltli:i.{tiif.*H"{ffit!ffi

DECEMBER

Lumber Association of TexasDec. 14, Supervisory Skills for the Yard Foreman professional development program' Arlington, Tx.

Lumber Association of TexgsDec. 16, Managing Cash Flow professional development program, Waco, Tx.

JANUARY

Lumber Association of TexrsJcn. 5-7, Basic Estimating professional development program, Arlington, Tx.

Oklahoma Lumbermen's AssociationJen. &15, midwinter meeting, M/S "Song of Norway," Western Caribbean.

J.W. Murchison Co.Jan. 14-16, show, Hanover Hall, University N.C.-Wilmington, Wilrnington, N.C.

Stratton-Bddwin Co., Inc.Jrn. lrf-16, market, Rivergate Exhibition Center, New Orleans, La.

Bclknap, Inc.Jen 1617, Market, Hyatt-Orlando, Kissimmee, Fl.

Nationd Housewtres Menufrc(urers AssocietiooJrn. 17-20, 78th International Housewares Exposition, McCormick Place,/McCormick Place West, Chicago, Il.

Florida Lumber and Building Mrredrl Deders AssocierionJan. 20, management seminar, association headquarters, Orlando. Fl.

Genuine Hardware Co.Jn. 2L23, show, Sheraton Twin Towers, Orlando, Fl.

Nationaf Associrtion of Home BuiHersJen. 2LE,39th Annual Convention & Exposition, Astrohall-Astrodome complex, Houston, Tx.

Lumber Association of TexesIrn. 25, Supervisory Skills for the Yard Foreman professional development prograrn, Houston, Tx.

American Hrrdwrre Supply Co.lrrn.25-26, ls Annual Merchandise Market, Hyatt Regency, Orlando, Fl.

Lumber Associrtion of TexrsJrn. 27, Financial Planning/ Analysis professional development progr:rm, Houston, Tx.

Louisiana Building Materirl Deders AssocietionJrn. 27-311, convention, Royal Sonesta, Ne$'Orleans, La.

Florida Hrrdware Co.Jrn. 29-30, show, Jacksonville Beach Auditorium, Jacksonville Beach, Fl.

Netiond Woodwork Mrnufecturen AsrociefionJen. 2$

Feb. 3, Professional Golfers Association Sheraton, West Palm Beach, Fl.

American Herdwere Mrnufrchrrtrs AssochdonJen. 3lFeb. 2, Winter National Hardware and Home Center Show, Las Vegas Convention Centero Las Vegas, Nv.

FEBRUARY

Wrher Tips Co.Feb. 5{, market, Municipal Auditorium, Austin. Tx.

Mississippi Building Mrterid Deders AssocietionFeb. 10-12, 57th Annual Convention and Building Products Trade Show, Royal D'Iberville Hotel, Biloxi, Ms.

Hrrdwrre Associrtion of the VbginiesFcb. lil-15, convention, Holiday Inn of Old Town, Alexandria, Va.

Lumber Associrtion of TexrsFeb. 16, lnvesting in Fixed Assets professional development progrtrm, Waco, Tx.

BuiHer Mrrls of Amerkr, Inc.,- Fd.2LU, l2th Annud Independents Days products and management s€rvic€s erposition, Atlanta Hilton Hotel, Atlanta, Ga.

International Home Center Mrrteting ConfercnccFcb. 26, Convention Center.

ARKANSAS Slate Affairs committee ol the Mid-America Lumbermen's Association installed during the annual Arkansas Lumberfest includes (lelt to right) Tom Nabholz, Nabholz Supply Co., Conway; Everetl Greer, Superior Lumber Co., El Dorado; Jim Hayes, Bonsteel Lumber Co., Harrison; Bill Maylield, Reynolds Builders Supply, Smackover. (lower photo) Directors 0f the associati0n and their wives participatinq in the Oct. 15-16 meeting at H0l Sprinqs, Ar.. included (clockwise from the left) Jlnet and Philip Hiegel, Ouality Building Materials, Morrilton, Ar.: John and Nancy Garrett, Economy Lumber and Supply Co., Miami, 0k.; Grady and Judy 0llie, Geo. 0llie's Lumber Co., Pocola, 0k.; Jeane and David Randle, Ranco Building Supply, Fayetteville. Ar.

Retailer Bullish on Homes

Florida home builders are experiencing the start of a comeback, according to James W. Sweet, chairman and c.e.o. of ScottY's Inc., Winter Haven. Fl.

He said that builders are coming in and talking for the first time in a long time. "We're getting a lot of requests for quotes on framing lumber."

Declining interest rates are responsible for the increase, he noted. He said that the builders say that each percentage point decline in the interest rate in the home market lowers the payment by $40 a month.

Sweet cited as an examPle two builders of low priced ($50,000 to $60,000) homes who took orders for six homes in July and 60 houses in October. Florida, he predicts will get more than its share because of rapid population growth and lack of oversupply.

Baby Boomers Prefer D-l-Y

Hardware, lawn and garden, and autornotive merchandise acquired by baby boomers, the post World War II generation of Americans born between 1947 and l962,are usually purchased in stores specializing in do-ityourself merchandise.

Sally Haviland and Tom Murnane, authors of a study, The BobY Boom Generation: Where TheY ShoP, Published by Management Horizons, Inc., a consulting firm, unearthed this information in a recent monitoring of consumer retail shoPPing behavior.

To earn the quality mark of the American Wood Preservers Bureau Pressure treated wood products must meet rigid technical standards. Questions of quality are answered before the material reaches the job sites. When you call for plywood, lumber or timber from treating @ plants qualified by the

American Wood Preservers Bureau you can be sure that the material will meet or surpass your standards. No question about it.

AWPB mark of quality assurance is backed by independent, thirdparty sampling and quality control. For more information, write or call today.

ATERTCAN WOOD PRESERVERS BUREAU

Box 6085 - 27725. Randolph St - Arlington 'VA222OO703 931-8180

Please send me information about selecting and specifying pressure treated wood oroducts that have been awarded the AWPB quality mark'

Home Center Merchant

BILL FISHMAN

Bill Fishman & Atfiliates

Tired of treated lumber that cracks crooks, and twists, and end checks and splits, and is hard to saw, and splits again when you nail it?

THERE IS A BETTER TREATEDLUMBER...

DURA.TREET

IIO

It is a natural golden brown color and retains its easy working characteristics. That's because it doesn't need extreme drying temperatures before or after treating. Whether buying for resale or treating for your best cutomer, it will mean more $$$'s for you.

When marked with the Dura-Treet Ouality Mark it meets all AWPA, REA and Uniform Building Code requirements.

For more information. call or write.

Jim Cooney Director of Marketing IDACON,

INC.

10611 Harwin Drive Suite 400 Houston, Texas 77036

(713) 988-9252

lr(x,stoil.lErls

11650 lberia Place San Diego, Ca.92128

ElesenncHERs in the home cenrer I Iindustry are overlooking a market segment that should be more independently identified.

Most consumer research classifies in two broad categories: (A) the ContractorlBuilder and (B) the Do-it-yourselfer (sometimes tagged the "consumer," "home-owner" or the "cash customer. ") ln the metropolitan markets these broad categories are probably sufficient to determine a retailer's marketing position, merchandise mix, and most appealing operational policies.

However, in the rural areas a 3-way split would be more meaningful: (l) Builder/Contractor, (2) Do-it-yourselfer and (3) the cash customer buying to do a home improvement project for someone else.

This third group is comprised of semiprofessionals, building or installing for profit. They opcrate without offices, business stationery, business banking accounts or licensing. Many are the moonlighting policemen and firemen types picking up their second income doing home repair/home improvement jobs for friends and neighbors.

With housing starts down, my office is receiving more and more calls to work with building material dealers who want to change their ratio of contractor to retail business. The reasons are obvious. The new construction industry is seasonal, greatly dependent upon fluctuating interest rates, and highly susceptible to bad debts. On the other hand, the trade papers boast about the higher margins and a more consistent cash flow in the do-it-yourself business.

Step one in capturing more d-i-y business is the taking of a mail, telephone, and in-store survey to determine the retailer's positioning in the marketplace. Heretofore we accepted management's typical estimates of a 7O/3O or 6O/4O "retail" to contractor ratio. They establish these ratios by assuming all charge sales are contractor/builder and all cash sales are retail. But when we dig deep, we find that an extremely large percentage of the cash sales business falls into the semi-professional category. Recently we've altered our consumer surveys to attempt to determine how much of the clientele reallv buy for

resale. (Not an easy task in those states where the moonlighters are theoretically violating state licensing laws.)

Ironically, the home center industry almost totally neglects this market segment. They do a poor job of identifying them, acknowledging them, and promoting to their needs. By necessity, this group must buy sharper-and they have an understandable need for larger-thantypical short term but frequent financing.

Slowly, retailers are seeing a need to develop separate direct mail progr:rms to this specialized market. The retailer's goal should be to keep these big ticket semi-professional buyers as captured accounts, and to eliminate their need to shop around town for the lowest bid on each commodity item. But, first the;" must be identified. lt requires the alertness, tact, and cooperation of the building material dealer's retail countermen. They know who these customers are. Ask 'em!

" You said tou x'anted a list of rhe mer<'handise that rr'(l-rn't moring."

NIEBLING

(Continued from page I5)

own industry. These industries have either over-capacity or obsolete plants or both. Until the "survivors" can obtain the proper return on investment, the "world class" new plants will not be built . . . and our economy will not surge until there is a substantial increase in capital spending.

Yet we are optimistic. Why?

It is clear that one of the biggest chores of the'80s will be the repair of our infra-structure. We are talking about roads, bridges, transportation terminals, waste disposals, pipelines, prisons, etc., etc. That's where the action will be. While these industries will require experts, computer programmers and engineers, it is also true that truck drivers, laborers, flagpersons and others will also be needed. We would suggest that here is where the answer lies as opposed to the growing idea of protectionism in the marketplace.

How does this all relate to forest products and housing for 1983?

The desire and demand for housing is out there. It is not 2 million starts ayear and hasn't been for some years. Nevertheless, we see a200/o increase in housing starts next year to 1,175,000 units.

Industrial wood markets should also be better. As interest rates decline and industry slowly recovers, we think improvement of l0-1590 over 1982 is both logical and possible.

The important remodeling and doit-yourself market may be somewhat "soft" in the early months of 1983. The unemployment figures are scary, and the consumer shows every indication of remaining conservative until things look better. This improvement should and could occur by spring. In terms of volume and demand we forecast all of 1983 to be about the same as 1982.

The past and current promotion of overseas lumber export markets by both Canadian and U.S. manufacturing groups should result in gradual improvement next year.

Finally, if our scenario is a correct oD€; w€ project still another market for wood products that has great potential. If there is to be only gradual improvement in wood products markets over the next few years, the industry might really get serious about the light commercial market.

To quote a noted television religious leader, we feel that 1983 will bring some better times for some in the industry. "Tough times never last but tough people do."

DILL

(Continued from page 91

crease of about 3590. Single family starts would rise more strongly than multi-family starts. Interms of Gross National Product, residential construction in real terms should be up about 2590 in 1983 after declinine 990 in 1982. Additions and alteral tions to existing residences should be up about 690 in real terms next year compared with a 790 increase in 1982.

Wholesale lumber and wood product prices should rise 690 to 990 next year and total residential construction costs should rise 490 to 7 9o The median sales price of new one-unit homes could be expected to increase 8q0 to l0q0 next year after rising only around 3a/o in 1982.

While all the above are considered most likely, many positive or negative contingencies could develop next year. On the positive side, interest rates and inflation could continue to come down more rapidly than anticipated, producing the potential for an even stronger rebound in markets for building products. On the other hand, the conflict between very large federal deficits and monetarv restraint could re-emerge once the

economy begins to expand, a situation which could produce sharply higher interest rates and another recession in housing activity.

The anticipated national economic recovery in 1983 would certainly have a beneficial impact on the southern states.

Those areas of the South which have been most adversely impacted by recession, namely the durable goods industries of the middle South, should receive the greatest relief as the economy recovers and the demand for durable goods picks up.

However, activity in depressed industries is likely to stay far below boom levels. Those areas of the South which suffered the least during the recession, will experience a pickup in growth next year, but not a dramatic one.

While energy demand should pick up somewhat next year, energy prices will not escalate significantly, which means that the oil and gas industry in the middle South will not be a strong engine of economic growth in 1983. However, the South's many housing related industries, such as lumber, carpeting and furniture, should experience a moderately strong recovery in 1983. All things considered, 1983 could be the economv's best year since at least 1979.

CAROLINAS

executive vlce presldent

FrgPgPlS from most dealers and rI suppliers still indicate little improvement in business conditions for the two Carolinas. Some areas are reporting increases over last year but these are isolated.

In our travels and telephone conversations, we find most dealers are reporting a drop of from 2090 to 25v/o over l98l figures through September '82. Several areas report that builders of smaller homes (approximately 900 sq. ft. to 1300 sq. ft.) priced from $35,000 to $42,000, seem to be the best movers.

The western part of North Carolina seems to have been less affected by the recession than most. Tourism has been good to very good for that area as well as an influx of Floridians relocating in resort areas. A large percentage of the new homes andlor property sales have involved cash.

Business in the coastal areas of both Carolinas has tailed off dramatically over the last two months. Competition has been so intense in some ofthese areas that profits are marginal.

Most dealers and suppliers we have talked with are mildly optimistic about the remainder of 1982 and believe 1983 will certainly be a better year. Be smart by managing your resources carefully. Be aggressive but don't take the uncalculated risk. Carelessness and poor management will cause an untold number of problems for your business.

The South Carolina Department of Labor, Division of Data Management and Statistics, is sponsoring a series of free workshops designed to help employ-

Heavy Oll

Water borne Pen-

ers with I I or more employees understand the record keeping responsibilities mandated by the Occupational Safety and Health Act. These workshops will explain how to keep accurate records on work-related injuries and illnesses required by OSHA.

For more information and workshop dates, contact: Ms. Kathy T. Lybrand, State of South Carolina, Department of Labor, P.O. Box 11329, Columbia, SC 292rr.

STEM, which stands for Stop Thefts

of Equipment & Materids, is now holding an organizational membership drive among home builders, othcrs in the construction industry and federal, state and local law enforcement officials.

During the coming weeks, members of various associations connected with the industry will be contacted. A representative from STEM will explain the program and solicit memberships.

CLBMDA supports the program and encourages your participation. I an a founding member and on the board of directors of STEM.

lf the mernbership drive is successful, an organization will be formed with a full-time staff to work for tougher laws against construction site thefts and to develop ways of combuing the current problem.

For further information about STEM, contact the CLBMDA office in Charlotte.

VIRGINIA

JACK ATLISON executlve dlrector

I^IOST of the dealers we've talked IUIto recently report that business is generally very good. (One said "More than we can handle"-told him he has a short memory!)

The improved interest rates and the good news from Wall Street has restord some consumer conhdence, and the d-i-y business is booming.

There are three chain stores near my home and all three parking lots were

fuller last Saturday and Sunday than I've ever seen them. (All had current tabloid sales in progress.)

In other parts of the state we've heard that "front door" business is good, but the "back door" trade is still dead. The most prevalent comment is not about the present, but the future.

Everyone welcomes the drop (a last!) in interest rates, but they all are afraid il won't last. Not entirely directionless, but uncomfonable and unreliable.

Let's hope that tunnel with the light in it isn't on the Long Island RR.

G.

Vlrgtnla Bulldlng Matertal Aesoclat{on r2r Urlrct Slr€t, Sult? l0l, Rlclmld. Vr.2ill2!t (t0a) tt(}ll200

"All grren wood la not

Lumbermen's Associatlon of Texas

P.O. Bor 5546, Austln, Tx.7E763 (5121 472'1194

TEXAS TOPICS

JOE BUTLER, SR. executlve vlce presldent

EIvE different professional develop- F ment seminars developed by the Hankamer School of Business, Baylor University, for our education committee' will be offered in the coming months.

The instructors, all leaders in their respective fields who have worked with the business community, will make the series a down-to-earth experience for a business man, an employee who wants to improve his education in basic subjects or anyone who wants to learn the latest developments in these fields.

Dr. Lowell Broom;who will lead the financial analysis/planning seminar, is a financial consultant. a CPA and a holder of degrees from William Carey College, Louisiana Technical University and the University of Mississippi. Dr. S.P. Johnson, who presents supervisory skills for the yard foreman, has degrees from Florida State University and is an accomplished speaker and writer with ar-

ticfes appearing in the Journal of Small Business Management and SBI Review.

Leader for the managing cash flow seminar, Dr. Terry Maness is a corporate financial management consultant with degrees from Indiana University. An

ti:t:.i:i:liii.llii*:.ii:.::iiiiiii;l

associate dean at Baylor University, he has written numerous articles on the financial futures market, caPital budgeting, cash management and financial management. Dr. Steve HardY, leader for managing time, has been a consultant to more than 75 businesses. He has degrees from Baylor and has owned and operated his own business.

The first seminars were held last month in Waco at the Hankamer School of Business on the Baylor campus. They covered financial analysis and planning,

(Please turn to page 38)

BOB JOHN execudve vlce president

loON'r KNow if we have expressed I our appreciation as often as we should have during this past year to all our members and friends. And if we haven't -thank you. Maybe it is good that we have a holiday for Christmas and New

I o,,o'- ILOUISIANA

OUTLOOK

JAMES L. DUKE

lI PNASERS continue to report slow lUlbusiness with few exceptions. Lumber and plywood mills report shipments are up with mills producingat9lo/o of capacity.

These increased shipments are going somewhere. Most firms are buying only what they sell and we have not had any indication of trends toward building inventory. This being the case, it might be wise to take an inventorY.

Gary Lusby, Steel Lumber, West Monroe, is the new president of the North-East Association. Larry Rogers, Rogers Manufacturing, Monroe, is the new v.p.; Bill Jones, Mid States Wood Preservers, Simsboro, treasurer. Jerry Piper will serve as program chairman; Ralph Norman, membership chairman. The group voted to set membership dues at $50 per year and to meet quarterly.

The New Orleans Association has

elected Kenny Schultz, Clarkmart, pres'; Willie White, v.p., and Doug Lacquer, secretary. The group supports many ongoing projects including a I 2 week education program for emploYees.

Year's in that it provides us an opportunlty to look back at mistakes and ahead at opportunities.

Business has been rough as You know, a few bright spots, but also some rough ones.

But, we want this holiday greeting to you to be a happy one, one of brightness, of warmth and genuineness as we thank you and yours for your work with us and to invite you to let us know of any ideas or suggestions you have that would make our association better. Perhaps together we can find means ol enlarging our where-with-all and have more to share. Certainly all of us are a lot smarter than any one or two of us, and we want You to share your input with us so we can share more with you.

We do wish for you and Yours the very warmest of holiday greetings and wishes. We promise you we will truly try to do a better job during the New Year' For your part, call us up short when you think we have missed a good opportunity.

STAN OWENS erecutlve

vlce preeldent

TUg 58TH annual convention of rhe I Tennessee Building Material Association in Knoxville, Oct.2l-23, was most successful, with over 300 in attendance.

Charles Rhyne, Jr., partner in Rhyne Lumber Co., Newport, received the I lth annual Marshall Memorial Award presented by Olen H. Marshall, chairman of the board. Hamblen Lumber Co.. Mor-

ristown. Glenda Graham, Tindell's Inc., Knoxville, and Scott Wright, City Lumber Co., Dyer, won door prizes.

Directors elected for three year terrns include Jack Cooper, gen. mgr., Schubert Lumber Co., Knoxville, District 2; Jimmy Orgain, v.p., Orgain Building Supply Co., Clarksville, District 6; Gilbert Smith, pres., A.J. Smith Co., Nashville; Bob Mayfield, gen. mgr., Forcum-Lannom Materials, Dyersburg, and Paul Moore, pres., Supreme Building Products, Inc., McMinnville, directors-at-large, and Rodes Hart, pres.,

Wholesale Building Products, Nashville, asociate director. Roy Lambert, pres., Lambert Lumber Co., Lewisburg, wils elected treasurer, replacing John Creeter, John W. Greeter Building Center, Tracy City, who resigned.

The Young Executives were in charge of the official headquarters suite and performed an excellent job as hosts for the convention.

Both the World's Fair and the excellent program attracted favorable comments. Mayor Randy Tyree, Dwight Kessel and Johnny Majors, assistant athletic director and head football coach, University of Tennessee, welcomed the delegates. Congressman John J. Duncan, second district, Tennessee, was the keynote speaker. Other sessions were addressed by Al Matamoros, Armstrong World Industries; Robert L. Remine, tar( mgr., Ernst & Whinney, Knoxville; and Bill Willis, gen. mgr., Tennessee Valley Authority.

by Don A. Gampbell

er€cuflve vlce precldent

I ONG-TERM interest rates won't

-drop

much further, and if they do continue to decline briefly, they probably will rebound early next year as the economy begins to recover. At least that's the contention of First Boston Corp. They predict further declines in shortterm rates with the Fed's discount rate falling to SVzElo or 890 by year end.

In searching for a panacea there is now a belief that if interest rates come down, everything would be solved. But the prob-

lems facing the economy are really much more deep seated. Lower interest rates will not or cannot solve everything just as a flat rate tax or "supply side" fiscal policy can regulate the money supply day by day.

We talk so much about interest rates that I think we sometimes overlook the many other factors that are involved in this picture. We all know that business has not been good, but very few of us think about the consumer and what a strong financial shape he is in. He has ample cash on hand, while purchases and debt have been cut back sharply. Still,

people are not spending the way optimists predicted. A little noticed, but major reason is thal the July tax cut, which was supposed to spur the recovery, has been stolen by the U.S. Treasury. New withholding schedules prevented anyone earning over $20,000 from getting anything but a token cut in July. The money has been withheld and will come out of government coffers when returns are filed early next yeiu. That should help the chances for a Spring recovery.

We said months and months ago that this tax cut would be of little benefit to the average consumer and it certainly has worked out that way. However, there was another reason why it did not work and that is the offsetting hikes in state and local taxes. These made the tax cut a non event. There will be more tax increases to make up for the short term falls caused by the on-going recession. Many company treasurers are already doing tax planning to minimize the effect of higher state and local rales.

Kentucky Lumber and Bulldlng Matertal Dealerc Assoclatlon P.o. Bu 665, lrbrnon, Ky. rlxtS (sozl6q2-z26r

PERS NALS

Harold K. Work, pres. and c.e.o. of Elk Corp. of America, Ennis, Tx., has been elected a v.p. of the parent corp., Elcor, Midland, Tx., according to Roy E. Campbell, pres.

Roger Weverka, regional v.p., now has responsibility for the Tulsa, Ok., district of Payless Cashways as well as the two Tx. districts with hq. in Dallas and Houston; Bradley J. Talley has been named director of management information; Larry Xoeppen, v.p.-merchandising and operations, is now v. p. -operations/systems.

Thomas J. Thornton, Jr. has been appointed v.p. of finance and administration, Home Center Div., W.R. Grace & Co.

J. Thomas Smith is the new managing director and Pamela R. Welch, administrative director, for the National Kerosene Heater Association. Nashville, Tn.

Lanny W. Moore has been named v.p., dealer services for Builder Marts of America, Inc., Greenville, S.C.; he is pres. & gen. mgr. of the Frank Ulmer Lumber Co.. Greenville.

J. Ken Porter has been promoted to gen. sales mgr., lumber, at the GeorgiaPacific Corp., Atlanta, Ga., according to Ronald P. Hogan, v.p.-distribution division.

Bob Stanton is now senior buyer-building products; Skip Plage senior buyerlumber and paneling, and Morris Barton, senior buyer-hardlines at Scotty's Inc., Winter Haven, Fl.

Bryan Schyver is now in sales at Stringfellow Lumber Co., Hodges, Al.

Gerry Henderson, S.C.; J.C. Leverett, Ga.; Melvin Ashe, N.C.; Harrell Hamilton, Jacksonville, Fl.; Dale Jeffers, No. Tx., have been named most valuable performers for the building products div. of Champion International.

Thomas R. Henderson is now distributor sales mgr. for Townsend Saw Chain Co., Columbia, S.C., according to James P. Dunne, sales and marketing director.

William A. Hensler has rejoined Wickes Lumber as senior v.p,, operations, reporting to Leslie L. Hagen, senior v.p. of Wickes Corp. and gen. mgr. of Wickes Lumber.

John R. Gamble has been appointed national sales mgr. for Schlage Lock Co., according to Jerold H. Tuft,lock div. pres.

David Organ, Jr., Organ Southside Lumber Co., Fort Smith, Ar., participated in the seventh national Passive Solar Conference at Knoxville, Tn.

Deborah L. Isbell has been appointed area sales mgr.-Southwest for Upco in Dallas, Tx.

Rick Moore and Jerry Buie are now with the wholesale lumber div. of Southwest Co., San Antonio, Tx.

Jerry Gartzke has joined Carolina Wood Preserving, Hardyville, S.C.

John Sass is the new mgr. of Barton's Lumber Co., Dermott, Ar.

John Patterson. So. Tx.-So. La. district sales mgr. for Mannington Mills, has been promoted to assistant general sales mgr., moving from Houston to Salem, N.J.

Larry Woods has joined sales at Duco Forest Products, Granbury, Tx.

Larry Wambod is now mgr. of lumberremanufacturing at Breckenridge Lumber Co., Fort Worth, Tx.

Dick Crutchfield, Whiteville Plywood Co., Whiteville, N.C., is the new vice chairman of the board of the Hardwood Plywood Manufacturers Association; Stephen C. Floyd, Hasty Plywood Co., Maxton, N.C.; Clyde E. Ratcliff, Masonite Corp., Warren, Ar.; Edsel Adams, West Memphis Plywood Corp., West Memphis, Ar., directors; Robert T. Renfro, paneling gen. mgr., Weyerhaeuser Co., Chesapeake, Va., chairman of the formaldehyde task force fund.

Holden Clarke, Clarke Veneers and Plywood, Jackson, Ms., and Dick Crutchfield, Whiteville Plywood Co., Whiteville, N.C., are among the new officers elected by the Hardwood Plywood Foundation.

Walter L. Von Merz, pres., The Walter Tips Co., Austin, Tx., and Mackie D. Stout III, gen. mgr., Genuine Hardware Co., Greensboro, N.C., have been elected to the executive committee of the National Wholesale Hardware Association.

James L. Meagher, chairman of the board of S & T Industries, Inc., Louisville, Ky., received the seventh annual Norman F. Luekens Award presented by the National Wholesale Hardware Association.

Rick Harris is a new salesman in the Charlotte, N.C., office of Epperson Lumber Sales.

Steve Watts has joined the contractor sales department of Lowe's in Sumter, S.C.

John Lyle has been promoted to co-mgr. of the 84 Lumber store in Pompano, Fl., with Lrrry Brady.

Jim Chambless has been named senior buyer of floor covering, cabinets, lawn and garden at Scotty's Inc., Winter Haven, Fl.

W.L. Scott, Scott Brothers, Nacona, Tx., is the recipient of an Estwing Gold Hammer award presented by Gene Lewisr v.p., sales, Orgill Brothers & Co., Inc., Memphis, Tn.

Pat Taylor, Dale Woods and Paul Teasley are new territory sales mgrs. at Moore-Handley , Inc., Birmingham, Al.

William H. Huth has been promoted to gen. mgr. at Pleasants Hardware Co., Winston-Salem, N.C.

T.D. Trotter is the new pres. of Keith Simmons Co., Inc,, Nashville, Tn.

Jim Henderson Jr. is a new v.p. at Stacy Building Materials & Home Center, Mobile, Al.

LET'S HEAR FROM YOU!

Building Products Digest is a new monthly information service for you. We're interested in you. Let us know when you or one of your employees has changed jobs, been promoted, gone on vacation, had a baby, you name it. Just mail in a card or letter to Building Products Digest,4500 Campus Dr., suite 480, Newport Beach, Ca. 92660 or, if easier, call (714) 549-8393. There is, of course, no charge.

Brad Barnett, Central Wood Preservers, Clinton, La., is recovering from injuries sustained in a head-on car collision.

Doug Sr. and Claire, Doug Jr., Steve and Kenny Ashy, Doug Ashy Building Materials, Inc., Lafayette; Greg and Stanley Bordelon, Service Builders Supply, Washington; Ralph Norrnan, Slagle-Johnson Lumber Co. , Monroe; Tommy Hatfield, Hatfield Hardware and Lumber Co,, Winnsboro; Dennis Stine, Stine Lumber Co., Sulphur; Dick Gaiennie, Gaiennie Lumber Co., Opelousas; Garland Hebert, Hebert Bros. Lumber Co., Lake Charles; Norris Rader, Norris Rader, Inc., New Iberia, Jimmy Goldsmith and Cordell Castetta were Louisiana delegates to the National Lumber and Building Material Dealers Association Convention at Orlando, Fl.

(Please turn to page 38)

NEW P DUCTS

and selected soles oids

Brass Trim Has Advantage

Solid brass trim kits are now available from Heatilator Inc. to install on both 28" and 36" models of the Advantage fireplace.

The kits include pre-cut lengths of solid brass which slip over the existing inner or outer front frame of the unit. The trim can be installed when the fireplace is purchased or as a retrofit accessory.

Calories to Burn

Preway's Super Energy Mizer

fireplace features an air flow design called the Ener-Jet-ic heatpath.

Working with the basic heat circulation system, it is said to increase heat output and velocity. Horizontal louvers above and below the 36" firebox improve air flow at both floor and upper heat return levels.

In addition, heat directors help keep warm air moving out into the room. Two outside air intakes draw air from outside the home for combustion. A damper control stops outside air flow when the fireplace is not in use.

The unit comes with sliding glass doors framed in antique brass, brick patterned refractory firebox walls and a poured refractory concrete base.

FREE READER SERVICE

For more information on New Producb wite Building Producb Dilgesf, 4500 Campus Dr., Suite 480, Newport Beach, Ca.92660. Please mention issue date and page number so we can process your request faster! Many thanks!

Microwave Mania

Quasar's microwave oven, MQ5530 featuring Insta-Matic temperature and weight defrost' reportdly allows the user to defrost up to six lbs. of meat or poultry pieces in increments of tenths of pounds accurately.

At a suggested retail price of $619.95, the oven offers six variable powers from 70 to 7(D watts in a 1.35 cu. ft. capacity space, three stage memory, multi-stage time defrost, automatic count up controls and program recall.

Seepage Stopper

Do-it-yourselfers can repair broken water clos€t flanges which cause toilets to wobble and water to seep with the Spanner Flange from Plumb Quick. Made of steel, it sliPs under the brolcen portlon ol a cast iron, plastic, copper or brass closet flange, saving a costly replacement.

New Cedar Logo

Pocket Pal

Fulcraft Knives by Arthur Fulmer, Inc. have single locking blades. The Tracker and the Classic are crafted from 440 and hi-carbon stainless steel, respectively. The razor-sharp blades are said to be aligned to fold into the mahogany-finished or polished-rosewood handles smoothly with good control. The knives have a suggested retail price of $12.95 to $29.95.

Flnish Line

Flecto Co.'s Varathane, a natural oil finish for wood siding, decks, fences and interior/exterior wood surfaces, has no film build-up, and will not chip, peel or crack. Reportedly it penetrates into wood, seals it and protects it.

CedarPro has been aclopted by P and M Lumber Products as a brand umbrella for all products,to be used in packaging, signs and point-ofpurchase materials.

Cedar siding, interior and exterior paneling, fencing and a wide range of other products are available for residential, commercial, architectural and landscape uses.

Lap Siding Tradition

Colony lap siding from TempleEastex, Inc., reportedly combines the traditional beauty of lap siding with modern building materials, resulting in lower cost and prolonged durability.

Each 12" x l6' panel is available in smooth or textured finish. To cut onsite painting, they are factory primed, and are said to have superior retention and weathering characteristics to provide long lasting beauty.

New Dry Kiln Process

Power Dry Inc. has unveiled a new wood drying process that reportedly shortens the amount of time needed to dry wood for commercial use while maintaining the quality of the wood.

By linking dielectric heating with use in a vacuum, the new process is said to have the capability of producing dry wood from green lumber in 20 to 80 hours with less degrade than results from conventional kiln drving.

The Power Dry System includes an automatic loader, which can handle full loads of lumber in a horizontal position. The system takes the lumber straight from the sawmill to the kiln.

AdjustThe Flow

Heat-Gard, a non-electric radiator thermostatic valve from Taco, ensures room comfort and a balanced heating system by eliminating hot and cold spots.

Reportedly, the valve senses temperature changes and automatically adjusts the flow to meet the heating needs and comfort level of individual areas.

Energy Saving Fanfare

The Island Fan Co. has a series of energy-conserving ceiling fans which reportedly incorporate new engineering and design developments.

Available in l2 combinations the fan offers designers, architects and do-it-yourselfers a styling package with natural-finish wood blades. genuine cane inserts and operating features of reversible blade movement and variable speed control.

Another feature is a rotary vibration isolator which is said to assure smooth, silent operation. The fan has energy-conserving aspects during warm months when the down air setting cools by circulating fresh air in a continuous cycle. In cooler months,

the up air setting sends warm air trapped near the ceiling downward to help maintain a uniform temperature and lower thermostat settings. Operating on less energy than a 100 watt bulb, according to the company, the fan has a 2-speed, direct drive motor which is permanently sealed and requires no oiling.

Wideline Doors in Pine

Wing Industries, Inc. wideline doors are constructed of Ponderosa white pine and feature flush rails, dowel and glued, laminated or solid stiles. Doors are | 3/8 in. thick and 80 in. high. Offered in a full range of sizes, they are smooth sanded to a natural finish, ready to paint or stain.

Fan Convector

Myson Inc.'s Kick Space fan convector is under 4" high. Said to be ideal for hydronic and solar heating with energy saving benefits, it has a high performance heat exchanger with low water content. It features remote and variable speed control.

Concrete Advice

AKKRO-7T, a product of Tamms Industries Co., is a bonding admixture which improves the physical properties of concrete coatings, stucco, terraZl:o, mortar, toppings, and patching and leveling compounds.

It is said to improve the adhesion and mechanical bond, while retarding shrinkage, reducing cracking, and allowing for easier and smoother featheredging in sand and cement mixes.

Dishwasher Facellfl

A decorative panel which reportedly installs on any dishwasher topliminate the appliance look is being marketed by Conner Forest Industries. The panel is available in cabinet styles to match anY Connor design.

Rack lt Up

A new shelving rack to store material too big or too wide for standard shelving is available from Bernard Franklin Co.

Available in three depths, 2', 3' , 4'; four widths,4', 5', 6', 8', and five heights, 6' ,7' ,8' ,10', l5', the beams hold maximum loads up to 2400lbs per shelf level. Accessories include decking, row spacers, corrugated metal deck and splice plates for double deck mezzanines.

SafetySystem Heaters

OUALITY REDWOOD

Manufacturers of fence boards; posts and rails; decking; specialty items. Our sawmill and re-man facilities provide us with versatility in meeting your customer's needs.

lmm the lorust to the lence

P.O. Box 248

Arcata, Ca. 95521

(707) 822-1779

Russ & Bob Britt

Preway, Inc. hasalineof unvented gas heaters with an oxygen depletion safety system which shuts off the gas flow to the heater if the room oxygen fevel, normally 2Oo/0, drops to l89o or less.

The room heaters, in both natural and LP gas models, are designed for safe operation without costly venting to the outside. Two additional safety features are the stoppage of gas flow to the heater control if the pilot flame is extinguished by a draft or other interruption of gas supply and the Piezo ignition system which eliminates the need for matches or a direct light.

The unvented heaters come in four heat capacities, 10,000 BTU, 15,000 BTU, 25,000 BTU, and 30,000 BTU.

MeetThe Press

A wood shaper attachment, the Thompson rolling press, reportedly makes the milling of expensive hardwood boards more accurate and safe. Two 10"x6"x3/4' ' aluminum plates replace conventional factory supplied wood or metal fence plates and serve as back and support for two pressure spring loaded rollers which can be adjusted to compensate for various thickness of boards.

Magnetic Scheduler

Methods Research Corp. has a magnetic Expand-A-Plan modular personnel scheduling system which can be useful to retailers. Made up of panels that come in four sizes, the product can be used vertically or horizontally. Hundreds of magnetic accessories are available.

POTENT SALES AIDS FOR DECK DEALERS

complete sales support

Useful also for it will accommodate boards up to I 3/4" thick. The rolling press is designed to fit most heavy duty wood shapers and is readily adaptable.

Flight of Phoenix

Stauffer Chemical Co. has sent approximately 15,000 information kits detailing the new Phoenix wallcover collection to dealers nationwide as part of a merchandiser incentive program.

Any wallcovering dealer or dealer employee is eligible and prizes will reportedly be awarded based on the amount of the product sold. The collection features l9 fabric-backed patterns such as linen, burlap and suede and is available in 140 colorwavs.

Powerlul Pedestals

AMP Undercarpet Cabling

System III features a line ofpedestals for power, telephone and data distribution. Providing simple installation because of fewer parts to assemble, the receptacles are low and accessible which allows for layout flexibility.

The self-contained design has insulation di splacement contacts which provide proper connection and grounding of frame and duplex device. The pedestals are available in brown, black, beige and gray.

All the selling tools you need from managers manual, sales clesk manual, LaBelle tapes, consumer sales and "howto" materlals to deck diagrams. lf you want to sell wood - '\ g:i5 ;il:'sfl 5','"'3:fi :3%

l-rofio6ir-r*^-rtrn-aoille-re.l.iix-wo,r |

sates eidt send coupon. I NAME|.orro*

Gem of a Planter

Gemstone colored, tapered planters from Rubbermaid are available in four sizes, 4V2", 6", 'lt/2" and 8" diameters. In addition to emerald, ruby and sapphire they come in colors of biscuit, chocolate, terra cotta and white.

is the PROFESS|0I|A|-'S Att PURP0SE PLASTIC

Boat builders, furniture makers, cabinet makers, etc. have found it the one sure answer to correcting wood defects, filling wood cracks, gouges, covering countersunk nails and screws.

Can be used under Fiber Glass!

Ready to use right out of the can, Famowood applies like putty-sti;ks like glue; dries quickly; won't shrink; takes spirit stains, and will not gum up sander. Waterproof and weatherproof when properly applied. 44

Ayailable in 16 matching wood colors and white.

BEVERTY MAI{UFACTURIl{G C(lMPA}IY

9118 S. Main Street. Los Angeles, Calif.90003, P.0. Box 73233

Manulact0r.rs of Femowood. F.moSlale. F.mo$lv.nt 0islrib0tot and Dcelat Inq!i.ict InYitad

Tantalizing Tubs

A wide range of cultured marble and onyx bath tubs with or without factory installed whirlpool systems, sinks and accessories are available from Roman Marble, Inc. Included are single, double and round tubs in extra deep (19") models as well as oval, rectangular and shell bowl sinks in depths from 16" to 30".

Offered in all popular colors, the products include a selection of standard sizes and shapes or can be crafted to specification.

FREE READER SERVICE

For more information on New Products write Buiding P.oducb Dgest, 4500 Campus Dr., Suile 480, Newport Beach, Ca.92ffi. Please mention issue date and Page number so we can pr@ess your request faster! Many thanks!

Mallet lor Metal

Malco Products, Inc., recently introduced a flat-faced wooden mallet designed for sheet metal adjustment. It is made from 10090 hickory and

has a 2Vz" face size. The handle is cemented into the mallet's head with a steel pin inserted for reinforcement.

Willow, a surprising Southern hardwood

I LTHOUGH willow usually Ibrings to mind a vision of fishing along a babbling stream or relaxing with a pitcher of lemonade in a shady bower, the species Salx nigra is important as a commercial hardwood in the South.

Because the trees grow in remote overflow areas and new land formed along rivers, they often are accessible only by boat. Many people who regularly handle and use willow lumber have never seen the trees growing.

Only this black willow grows large enough for commercial use. The tree usually reaches a height of 130 feet with a diameter of three feet. Willow timber trees grow tall and slender with round heads and open tops. The first branches often are 60 feet from the ground. Although the trees sometimes are found growing with cottonwood, cypress or tupelo, the best quality timber comes from pure stands, the most common.

The bark, leaves, twigs and wood of the willow are different from all other hardwoods and interesting from a botanical view. The leaves are long and narrow with a sharp point on the ends, a fine serrated margin, and short stems. The average length of the leaf is four inches with a width of % inch. Some leaves (falcata, Torr. variety) are shaped like a scythe. The bark,which is one to I % inches thick, is dark brown,

sometimes tinged with orange. It has broad, flat connecting ridges which separate into plate-like scales. These become shaggy on older trees.

The wood color, which varies a great deal, ranges from dark reddish, to dark purplish brown like walnut, to gray, or a mixture of all three. Sapwood is usually pale tan or almost white. These colorations make the wood ideal for paneling where a natural wood character is desirable. Willow takes and holds glue better than any other known wood to rate an A Number One. It also remains flat, resists warpage and shrinkage. It is very light, 2800 pounds per thousand feet, but very strong. Soft, it works easily and does not split in nailing or screwing.

Because of its properties willow is perfect for glued-up core stock, table tops, and panels. It also is excellent for artificial legs. Canada imports

Story at a Glance

Fast growing thrives in remote overflow areas of the Mississippi River and its tributaries . . good commer. cial properties . . important for furniture, paneling.

large amounts of Southern willow for furniture. Caskets, shipping boxes, interior trim, doors, panels, and miscellaneous wood products are made of willow. Because many people do not associate willow with strength and beauty, manufacturers often call the wood by its classical name, salix.

Louisiana, according to forest surveys, has the largest volume of willow saw timber. Arkansas is second with Mississippi third. Most of this estimated 1.5 billion board feet of standing willow saw timber is along or close to the Mississippi River and the lower reaches of its major tributaries. Production levels vary substantially, but average between 40 and 50 million board feet per year.

The willow tree is a rapid grower. Young stands reach maturity so quickly that lumber operators consider willow holdings as permanent sources of supply. Many areas have been cut four or five times in the last 50 years. Since willow timber land is low and wet, it can be used for virtually little else. The willow's rapid growth enables it to survive in the continually changing environment of Southern river sand bars, islands, ox bow loops and ox bow lakes caused by constantly shifting channels. The trees, which grow on these shores and bars as they form and help to establish them, are soon of merchantable size.

NEWLITERATURE

ffi-;fiftfl

Color Choices

A bath color coordinator, sales literature and sales aids are free from Tom Hoff, Mansfield Sanitary, 150 lst St., Perrysville, Oh. 44864.

Keeping Up

For a free copy of their 1982-83 maintenance catalog, write Randustrial Corp., l33ll-NR Union Ave., Cleveland, Oh. 40nor call (800) 321#2.

Knotty and Nice

For a free data sheet on knotty redwood write Simpson Timber Co., Development Ctr., P.O. Box 565, Redmond, Wa..98052.

Concrete ldeas

Three application guides on the proper application and use of architectural concrete form liners are free from the Symons Corp., 2(X) E. Touhy Ave., Des Plaines, I1.60018.

Cedar on the Side

Western red cedar shingle siding panel literature in color is free from Shakertown Corp., P.O. Box 400, Winlock, Wa.,98596.

Low Riders

Three new pneumatic-tire lift trucks are described in Bulletin {22,0 available free from Eaton Corp., Yale Industrial Truck Div., Dept. 147, ll0fl) Roosevelt Blvd., Philadelphia, Pa. l9l15.

Sales Sensalions

A 32-p. full color catalogSoles Aidslor

Successful Selling: 1983 Edition is available free by writing the Dismar Corp., 4415 Mdton Pike, Pennsauken, N.J. 08109 or calling (W)257-7751.

Charting the Woods

Information for dealers and distributors on wood moulding wall chart kits that can be tailored to individual

needs is available from Wood Moulding and Millwork Producers, P.O. Box 25278, Portland, Or., 97225.

Smooth Operator

For free information on cabinet door slides, write Grant Hardware Co., High St., West Nyack, N.Y. l09ql.

FOR PROMPT SERVICE

on all New Literature stories write directly to the name and address shown in each item. Please mention that you saw it in Building Producb Digest, Many thanks!

New Leverage

Details on a new lever handle from Arrow Lock Corp. for use with its 150 series cylindrical locks is free from Arrow Lock Corp., 10340 Foster Ave., Brooklyn, N.Y. 11236.

Reading to Soak In

A 160-p. paperback how-to book, Spas and Hot Tubs, by A. Cort Sinnes is $7.95 plus $1.00 postage and handling from HP Books, Box 5367, Tucson, Az., 85703.

All-American Fans

A l2-p. envelope stuffer detailing American Pride ceiling fans is free from Nichols-Kusan, Inc., P.O. Box ll9l, Jacksonville, Tx, 7 57 6.

Brass Tactics

A brass lever sets and accessories brochure is available from Valli & Colombo, Inc., I 54O Highland Ave., Duarte, Ca.9l0l0.

Screened Out

For a free brochure on the Phiferglass SunScreen for windows write Phifer Wire Products, Inc., P.O. Box 1700, Tuscaloosa, A1.35403.

Doors ol Steel

A copy of the Insulated Steel Door Systems Institute's data file is available free from them at 712 Lakewood Center N., l46m Detroit Ave., Cleveland, oh., 4107.

Hit the Decks

For information on metal posr wood deck kits, other wood deck kits or accessory kits write Oakwood Manufacturing, Inc., P.O. Box 519, Oxford, Mi. 48051.

Scaffold Cenlerfold

A 28-p. catalog on tubular steel scaffolding is free from Vanguard Manufacturing, Inc., Temple Rd., New lpswich, N.H. 03071.

Cuttlng Edge

A brochure on metal cutting saw blades made from Swedistr steel is free from Kapman, [nc., P.O. Box 2fl), Waldesc, N.C.28690.

Steel Door Securlty

A brochure on insulated steel door and frame units is free from Bcnchmark, General Products Co., Inc., P.O. Box 7387, Fredericksburg, Ya. 2?M.

Itallan Beauty

"The Bcauty of Ccramic Tilcs from Italy," a four color brochure of applit* tions is free from the Italian Tile Ccnter, 49 Park Ave., New York, N.Y. Ifl)2l.

Polyesler Films

A brochure that identifies polyester film grades is free from Robert W. Marsh, ICI Americas Inc., Wilminglon, De., 1909/.

Water Pump

A color brochure describing the operation of Thermaflo water source pumps is free from Jacobsen Energy lndustries, Inc., 651 Vernon Way, Dept. P, El Cajon, Ca.9?.O?,0.

GEORGIA.PACIFIC

(Continued Jiom page 8) business may be steadier, as deregulation permits new ways to finance a home which are fair to both borrower and lender.

Our region has been less affected by this recession than other parts of the country. The South is less dependent on cyclical manufacturing jobs than the Northeast. And we continue to enjoy rapid growth. Builders in our region have not repeated the condominium speculation of 1973-75.

Next year we think there is an excellent chance that U.S. starts will improve to about 1.3 million, with Southern starts exceeding 750,000a25a/o recovery from 1982 and close to 1978's peak.

Single-family starts should rebound smartly, but multi-family housing's market share should remain greater than it has been in many years-about 37t/o next year, compared tojust 3090 in 1979.

By mid-year an improving economy should stimulate nonresidential building, with much of the increase coming in our region. In 1970, 3090 of the nation's nonresidential building was generated in the South. Next year we think that share will be close to 40q0.

Expenditures for repairs and alter-

ations may be flat in 1983, but we think they will outperform housing this decade. The fact that housing activity has been depressed does not diminish the importance of repairs and alterations.

The rising cost of new construction and high mortgage rates are great incentives to remodel or rehabilitate existing structures-particularly the 30 million tract houses built in the two decades after World War II. Manufactured housing will in-

STIMPSON

(Continued from page 1l ) year. McGraw-Hill Information Systems Company is predicting 1.325 million units. The National Association of Home Builders forecasts 1.365 starts, and NFPA is projecting 1.38 new homes in 1983. not including some 280,000 mobile homes.

Residential loan applications to the Department of Housing and Urban Development are already showing sharp gains. On an annual basis, applications in the last half of September reached 576,000, compared with 183,000 in the same l98l period. October figures were running at an annual rate of 745,0(X) applications, representing about half of

creasingly realize its potential. Shipments may improve to 275,Ofi) next year. The South's production share will reach S7slo-up from just 45vlo inthe mid-1970s.

So, when interest rates moderate, we anticipate growing markets for building products, both in the United States and offshore. We will not need the 2 million-starts-years of the '70s to enjoy prosperity in the 1980s-a returning prosperity that we believe may be 1983's legacy.

total residential loans.

Even for retailers whose businesses are not based on sales to the new home market, these figures should be good news. A healthy new home market has a multiplier effect, reaching into the markets for remodeling and over-the-counter sales. In a favorable housing atmosphere, lenders are inclined to be more reasonable about remodeling and renovation loans. And many new home owners start improvements to customize their dream homes.

Mr. Stimpson is olso chairman of the board of Gulf Lumber Co., Mobile, Al.-ed.

Classified Advertising

6OC a word, min. 25 words (25 words = $15). Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $4. Box numbers and special borders: $4 ea. Col. inch rate: $40. Names of advertisers using a box number cannot be released. Address all replies to box number shown in ad in care of Building Products Digest,45fi) Cempus Dr., Suitc 4t0, Newporl Berch, Ce.9266t0. Make checks payable to Cutler Publishing, Inc. Mail copy to above address or call (714) 549-8393. Deadline for copy is the l5th of the month. PAYMENT MUST ACCOMPANY COPY.

G(X)D CONDITION: lifi truck. Recently overhauled. For details write Box l9 c/o Building Products Digest.

DESKS, chairs, cabinets, used officc furniture available reasonably. Send your shopping list. Box 20 c/o Building Produos Digest.

FOR SALE

Classified Rates .60C per word

Minimum 25 words $4 for blind box Rate card upon request.

Place your ad now! Call (714) 549-8393

Building Products Digest takes your advertising message to retailers and wholesalers in the l3 Southern states: Texas, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, Florida, Georgia, Virginia, South Carolina, North Carolina, Kentucky, Tennessee.

Home center-building materials dcalcr. Salcs $2 % million. Growing firm in growing arca of Southeast. Buy or lease real estate. Price and financing negotiable. Write Box l7 c/o Building Products Digest for more information.

HARDWOOD INFOR,MATION

REPRINTS of hardwood anicles from The Merchant Magazine. Exccllcnt for refcrcncc or training. Domcstic Hardwoods, 310; Southeast Asian Hardwoods, t5; South American Hardwoods, 9; all three, tl6. Send your check today including name and address to Hardwood Reprints c/o Thc Mcrchant Magazine,450 Campus Dr., suite 480, Newporl Beach, Ca. 92660.

li::l:li:!:illi:iiit'l:ti:ilii,:itJl:,:,:+r:i:iittilttll,,.niillLiiiiillliiii::ii:i.tiLil$il:jlli:ti::

EXPERIENCED MANAGER

Former retail lumber yard manager would like responsible position in Gulf Coast area. Strong with numbers and credits. Reply Box l3 c/o Building Producls Disest.

RETIRED relail salesman looking for part time work in South Florida area. If you need someone to help out write Box 2l c/o Building Products Digest.

HOME CENTER MANAGER

Large well-established home center in Virginia offers unique opportunity to highly qualified, motivated manager. Excellent benefits, salary and the opportunity to work with a progressive family-owned firm. Quality living area provides great atmosphae for raising family. An unequaled opportunity for a qualified individual. All inquiries confidential. Send resume and salary requirements to Box l8 c/o Building Products Digest.

RECRUITING

IN THE FOREST

PRODUCTS

INDUSTRY

is our business. If you are qualified in these areas send detailed resgme including income history.

Management Accounting Production Sales

MAUGANS & ASSOCIATES Suite IO8, I Riverchase Office Plaza, Birmingham, A1.35244 (205\987-'7582. FEE PArD

EXPERIENCED SALESMAN

Wholesaler with reman plant seeks salesman to serve Southeast market. Salary, commission, car, expenses, and profit sharing. Please reply to Box l2 c/o Building Products Digest.

REMINDER: Payment must accompany the copy you send in for classified ads. Just use the instructions above to figure the amount. When you call in ads, we'll tell you the amount that must be sent for the ad.

Classified Rates

.60C per word

Minimum 25 words

$4 for blind box

Rate card upon request

(3)

DENNY

(Continued from page 8)

The rise in the cost of professional labor services is increasing faster than the cost of materials. encouraging more people to "do-it-yourself. " Labor services are forecast to increase at a6.6Vo average annual rate over the next five years versus a 5.6slo increase in the cost of materials.

The increasing awareness by manufacturers of the "do-ityourselP' potential is reflected in the improved design and packaging of products and the extensive

amount of literature available on the subject.

The following are what we consider to be the most significant negative factors impacting the home center industry:

Unfavorable Factors

(l) High interest rates, the scarcity of mortgage money, and escalating construction costs have all inhibitd new home construction and housing turnovers, which are critical to the home center industry. Total housing starts in 1982 will be approximately 1,050,q)0 units, the lowest level in 36 years, with the projected

The Btgg"stlittle \4hrehouse inTe><as!

With Willamette building products to go.

Right smack dab in the middle of Dallas and Forr \i7orthdeep in the heart of Grand Prairie, at 1200 West N. Carrier Pky., to be exacrwe've got rhe biggest little warehouse in Gxas. And we're just waiting to fill your orders for top quality sheathing as well as studs.

!7e do all the warehousing for youso all you have to do is give us a call and give us your specs. Thenwhether it's a few units or a truckload - we'll have the goods on our dock ready and waiting for your prompt pick-up.

So when you're ready to save time and money - you're ready for the biggest little warehouse in Gxasl Phone us today at318-255-6258.

Willamette Industries. Inc.

Lumber and Plywood Sales Division

PO. Drawer 1100 Ruston, Louisiana 71270

rate of 1,850,(m units in 1987 still below the 2 million unit rate of 1978. Similarly, housing turnover has decreased from7.49o in l9t to 4.44h in 1982, with a turnover of only 6.390 forecast in 1987. The effective mortgage interest rate is forecast at 16.090 in 1982 and, despite the abatement in high interest rates in general, is expected to remain above the historical levels of 9.090-ll.39o of the 197G1979 period.

The average size of a new single family house, after increasing from 1,710 square feet in lg16 to 1,760 square feet in 1979, has decreased to less than 1,550 square feet in 19t2, with this trend towards smaller homes expected to oontinue.

The difficulty in obtaining neoessary financing may inhibit construction of new stores. The ability to find suitable sites within specific economic para: meters wi[ be hindered by the rising cosS of real estate and construction. As occupancy costs rise, a more selective ap proach must be utilized to ensure that the market potential justifies the investment.

(5)

An increase in home center competition as the industry expands puts pressure on gross margins and operating expenses as units strive to remain price competitive and maintain market share through additional advertising and promotions.

All in dl, we feel that while 1983 will not be the best of years for the home center industry, it willshowimprovement over 1982 as Reaganomics finally results in the beginning of the long-awaited economic r€covery. While in the long run certain home center operations wiU bc hampered by the negative factors noted above, particularly with resp€ct to new store construction and competition, the industry as a whole will do well over the foreseeable future.

Hardwood Future Brlghter

Optimism appeared to be a definite feeling among the 790 members of the National Hardwood Lumber Association as they met in Vancouver, 8.C., Canada, to conduct business, eled officers and listen to state of the industry messages.

John B. Veach, Jr., Veach-May-

Wilson, Inc., Alcoa, Tn., waselected

VV

P.O. Box 3070. OREGON [503] 246-5500 . Lancaster, Ca [B0bl 543-2525

president at this 85th annual convention. held Oct. 4-6. Electcd to two) ear tcrn)\ as vice pre.idertlr rr cre

E.R. Thomas. Jr.. Thornas & Proetz

Lumber Co., St. Louis, Mo., Walter M. Fields. Jr.. Walter M. Fields

Lumber Co. lnc., Memphis, Tn., and John G. Thornson, Peter Thonrson & Sons Limited, Alliston, OnIano.

Thomas R. Beard. E.N. Bcard

Hardwood Lumber Co., Greens boro, N.C.; NIitch O. Carr, Augusta

Lumber & Supply, Inc., Staunton, Va.; Stephen H. Conger, Coastal Lurnber Co., Weldon N.C., and Richard F. Wright, Anderson-Tully Co., Memphis, were anrong those elected to serve three-vear terms as directors.

Pontland, Or". 97208 800-547-5500 . Telex 151218

. Laguna Hrlls Ca [714] 855-1661

EBNAI lallA

A young aggnessive company with over 2O trading pnofessionals anxious to serve YOU wrth all sizes, gnades and varieties of plywood, lumber-, shakes and shinqles.

TAKING CHARGE of National Hardwood Lumber Association aclivities f or the coming year are (lelt to righl) S Carroll White, ex ecutive mgr. al the Memphis, Tn , off ce,

Thomson E R Thomas, Jr., John , Jr , Walter M Fie ds Jr , Pau D

John G B Veach Webster

Take It Off

Please take me off your mailing list. I have sold my creosote plant and retired.

I think you have a nice magazine. It is needed. I wish you all the success in the world.

Jones

NFPA Annual in Arizona

Amid optimistic forecasts of an upturn for housing and the economy, the National Forest Products Assn. held its 80th Annual Meeting recently in Scottsdale, Az.

NFPA President William H. Stimpson said the outlook for 1983 and 1984 is "decidedly upbeat . . . I think we can take heart that we're coming around the bend." He said: "Let's stick together; let's rebuild our markets-and our organizations; let's capitalize on our opportunities and our adversity-let's program ourselves for success."

Guest speaker Briggs Napier, president of Briggs Napier Consultants, Inc., urged wood products producers to encourage home builders to devote more attention to improving the livability and amenities of new houses by using wood products-exposed wood, cabinets, moldings and builtins-and to promote these features in their sales efforts.

Donald R. Deardorff, president and general manager of Fourply, Inc., Grants Pass, Or., was elected new president. He succeeds outgoing President William H. Stimpson, Gulf Lumber Co., Mobile, Al. John R. Forrest, Boise Cascade Corp., Boise, Id., was elected first v.p. Robert F. Higgins, president of the Medford Corp., Medford, Or., was elected second v.p. and treasurer.

PERSONALS

(Continucd lrunr page 25)

Jim McKellar, Jr., M & M Lumber Co., Tulsa, Ok., has been named gen. chairman of the Oklahoma Lumbermen's Association's annual convention and merchandise mart to be held in Oklahoma City on Sept. l0-ll, 1983.

Randy Rogers is the new gen. mgr. of the H.E. Leonhardt Lumber Co., Oklahoma City, Ok., replacing Carroll Smith who has retired after 45 years of service.

Linwood Farmer has been made mgr., lumber purchases, for the Richmond, Va., based Virginia Wood Preservers, a CCA and creosote treating plant div. of Rentokil, Inc., according to Kenneth L. Semple, pres.

John A. Graham has been elected the new president of Hope Lumber & Supply Co., which headquarters in Muskogee, Ok.

George Barrelt has joined the team at Coastal Lumber Co., Weldon, N.C. He had been with Timber Realization (nee Masonite Corp.), at Hattiesburg, Ms.

G.C. Clark is now with Arling Lumber Co., Ludlow, Ky.

I)on Westman is new in sales at Connor Distributors Inc., Fort Worth, Tx.

T. Marshell Hehn Jr., president of Georgia-Pacific Corp., and newly elected chief operating officer, has been recommended to become president and chief executive officer in May 1983, according to Robert E. flowerrce, chairman and present chief executive officer.

Building Products Digesl

Margaret Stanlon is now in plywood sales for Willamette Industries' Southern lumber and plywood div. in the Rushton, La., office, according to Clayton Barns, sales mgr.

Weyne Carver, assistant gen. mgr. at Frank Ulmer Lumber Co., Greenville, S.C., has been promoted to gen. mgr.

Rick Hrrris has joined sales at Epperson Lumber Sales, Inc., in the Charlotte, N.C., office.

Frenk Stoffle has been named national sales mgr., industrial and commercial distribution division, and Xen Logue product mgr., distribution division, Georgia-Pacifi c, Atlanta, Ga.

Ron Gard is now handling the Tallahasse€, Fl., officeof Alpine Veneers, Inc.

"Woody" Green is now handling the Wolmanized lumber sales for Hugh Mungus and Freddy Fungus at Mungus-Fungus Forest Products, Climax, Nv.

Advertiser's Index

Coming next month

TEXAS

(Continued from pase 23)

including key concepts, an overview of the income statement and balance sheet, the statement of changes in financial position, financial statement analysis, credit and collection policy, budgeting and the use of budgets for cost control and performance evaluation.

Future seminars include Supervisory Skills for the Yard Foreman, Arlington, Dec. 14; Houston, Jan. 25; Managing Cash Flow, Waco, Dec. 16; Basic Estimating, Jan. 5-7, Arlington; Financial Planning,/Analysis, Jan. 27, Houston; Investing in Fixed Assets, Waco, Feb. 16; Managing Time, Houston/Dallas, March 7-l l.

Enrollment in each seminar is limited and will be accepted on a fust come basis. All enrollments will be taken and confirmed by the association office.

Woody

Macon. Ms.

Coming in January . o o

Our annual Southern Pine Special Issue. We'll be talking about its uses, characteristics, marketing, yarding, current market conditions, and how retailers and wholesalers can profitably buy and sell Southern Pine.

ADVERTISERS: act today to be sure your advertisement is included in this important special issue. Get your message before our 12,750 readers in 13 Southern states. Deadline for the January Southern Pine Special lssue is December 15. For information, write the address below or call (collect) (7 14) 549-8393.

sEE THOUqANDS OF NEW PRODUCTS FOR YOUR DIY CUSTOMERS

"l have attended this show for several years, and it is the best one I have seen anywherei'

David H. Beene, Presrdent. Alamo Lumber Comoanv San Antonro. Texds

No other industry event presents the complete diverse range of products for home improvement, remodeling, maintenance, decorating, recreational/leisure and related needs.

See them all at the bigger-than-ever Eighth Annual National Home Center Show at the Dallas Convention Centec February 27-March 2, 1983.

"Our buyers found new products and gained from the displays of the many products showni'

Don Tnoo, Senior Vrce Presrdent. General Merchandrser-Hardlrnes, Fred Meyel Inc Portland. Oreoon.

More than 'l 2OO exhibitors will display thousands of products. from building materials to tools, hardware and lawn and garden items...from plumbing and electrical to decorative oroducts. everythrng your customers need to tackle their do-it-you rself projects.

"Your attondance may be the best investment you make all yeari'

Kenny Stout, Stout's Burldrng Center Mt Washrngton. Kentucky

See Home Center of the Year Award Winner ideas on display at the Awards Exhibit. See how they did it...how you can do it, too! Stop by the HOME CENTER Magazine's ldea and Marketing Centers for personalized research and marketino information.

; FBEE PRE-REGISTRATION INSTRUCTIONS I rnE

a

2. Late mail registrations will not be processed. Register again at show.

LEARN BETTER WAYS TO OPERATE AND SELL TO MAXIMIZE PROFITS

'The Show also provides an excollent opportunity for our buyers to participate in some of tho most rewardang seminars that arg available in our industryi'

Come and discover whv the National Home Center Show Seminar Program is considered unparalleled in the industry. The program is designed and presented by successJul retail leaders in your industry who have faced and overcome many of the challenges that you face today.

"l would rate the National Home Center Show a 9+ on a scalo of O to 10. I also would like to emphasize that at is E must for those lumbsr companies who haw recently or who are thinking of convertang to a homo centsr operation:' F L "Pete Ch@n. Lamoerts Yards. lnc St Paui. Mrn^esota Seminar leaders will share their expertise on such vrtal toorcs as: How to make the most productive use of the space you have. New and efJectrve merchandising. promotron and advertising technrques that really move products off the shelf Proven methods for recruitrng and retarnrng top personnel - and similar subjects. Give and take ideas at round table drscussrons following the seminars. Talk about your business problems and successes as you learn about operatrons of other retarlers.. -as you meet wrth seminar leaders and oarticioants. Gain ideas for your own ad programs at the rndustry's most complete collection ol home center retaal advertising at HOME CENTER Magazine's Ad Display.

PRIORITY HOTEL RESERVATIOTS

['*fi'',it"fi;F5ti]i'-h"''ti't3llll'3i;'l'"";?'':il":l"J:?:'#";

(At-show resistration fee $5.00) -

tAlItAL ]IniE CENTER

3. REGrsrRATroN coMpurERrzED. ALL TNFoRMATToN MUST BE FTLLED rN. lrff FflITEMEMT '83

4. No oNE ,NDER 16 'EARS oLD ADMrrrED. odwss&ExFosrnot{

IMP0RTANT: PLEASE LEAVE SPACE BETWEEN FtRsT NAME 0R tNtItALS AND LAST NAME.

FEaRUARY 27-MARGH 2' 19E3/DALLAS

IMPORTANT: In order to process your registration, your company's business activity must be indicated below:

(l) tr Retailer/Dealer

(J) ! Wholesaler/Distributor

(P) tr Other (please describe)-

Note: Exhibitor personnel should not use this form. Please use form provided in Exhibitor Kit. Hotel forms will be sent on

RaV H Coonev Presrdent Scotty's lnc. Wrnter Haven. Florrda