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.

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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.

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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.