Building Products Digest - December 1983

Page 1

THE SMART MAN'S PLYIryOOD?

Yep. In fact L-P-Waferwood@ does plyrood jobs even better than plywood. It cuts and nails more like solid wood. It splinters less. It's smooth and uniform (no knots, core voids or patches). It's a great sheathing. And it's approved by the APA for Sturd-I-Floor@ constmction. But the best thing about L-P-Waferwood is this. It costs less than plywood. A lot less.

No wonder it's the smart man's plywood. L-P-Waferwood. It's the lightest, brightest waferwood made. Stock it. For the name of your distributol call today. Louisiana-Pacific Corporation, Conroe, Texas, 409-756-0541.

ildinq Prof,ucts
Serving the lum markets in 13 Southern states
EIPnffi,*

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Coming in January o o o

Our annual Southern Pine Special Issue. We'll be talking about its uses, characteristics, marketing, grading, current market conditions, and how retailers and wholesalers can profitably buy and sell Southern Pine in 7984.

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. Coming

Hardware/Housewares Special

in February . .
Issue. March Issue Redwood.
. o.. o...
o
Aprillssue
. Pressure Treated Wood.
Sen'ing
\-t
4500 Campus Dr surle 480. Newporl Beach. Ca 92660
oaoaaaoa
the lumber
& building supply nrark€ls in l3 Southern stales

Fllcrrch ll J2.13.14, 19E4, in Chicagol The "Search for Excellence" confinues ot...

New Products! Seminars!

Seminars! Special Displays! ldea Exchange!

. . the NAIIONAL HOltlE CENTER SHOW of f984I

Don't mllc thc learnlng and buying erperlence of thc year-the largeot. .thc most dlverse. the moot in-depthShorv crcluilve-ly for retallero oelilng do.lt-you-roelf producto.

See ' touch observe literally thousands of products--{iscover what's new-and what this diverse and complete range of Dly products can do for your customer and your operation.

Take part in lhe most stimulating seminar program in home center retailing. a program designed to help you succeed in your "search of excellence" in all aspects of your.business. Learn sound, practical ideas for ettective management-meichandising and advertising tech- niques---operations and personnel-to name just a lew.

Visit lhe spcfial displays...gather ideas lrom Home Centers ot the Year...tind examples of ad dollars working at top etfectiveness in the Advertising Display Center.

Exchange ideas with retailers who share your same challenges and objectives. Find answers to your product mix questions from more than 1,300 exhibiting suppliers.

Four full days ot product exhibits, information and excitement at the World's Greatest Eyent lor Do-lt-Yourcell R€t irers.

The gth Annual NATIONAL HouE CENTER sHow -HAncH fl-l4ucconmci/- pL cElcHtc/.co

,--fr*us_!atro:v3!llg_c$lg:...-s31e:si...9tlgo.luxttEeseY3liora_

Free Pre-Registration Instructions

1. l,4ust be feceived rn the show oltice by January 27 1984. Confirmation of preregrstration and hotel reservalron lorms will be mailed within three weeks. Free badges wrll be mailed after January 2, 1984.

2. Late marl registrations will not be processed Begister again ?Sshow (At show regrstration fee $5 O0)

3. REGISTRATION COMPUTERIZED. ALL INFORMATION MUST BE FILLED IN.

4. NO ONE UNDER 16 YEARS OLD ADI\,,IITTED

llVlP0RTANT. Please leave space between first name or initials and last name

^S' NATIONAL HOME CENTER HOME IMPROVEMENT '84 CONGRESS & EXPOSITION

March 1 1-14, l984ichicago, llllnois

IMPORTANT: In order lo process your registratron, your company s business activity musl be indicated belowl

(l) ! RetailetDealer

(J) ! Wholesaleri Distributor

(P) n Other (please describe)-

NOTE: Exhibitor personnel should not use this form. Please use form provrded in Exhibilor Ktt.

Hotel lorms will be sent on recerpt oi pre-regrsfal on torms

' National Home Cenler Show,60o T.lcott Road, Park Rldge, lL 60068

U.S.A.

SPONSORED BY VANCE PUBLISHING CORPORATION/PUBLISHERS OF HOME CENTER MAGAZINE

December.1983 3
NATN)NAL
CENTER
COT\IGRESS
,,,,,,t€1=-,=--ffiililfu
HOME
HOME IMPROVEMENT
& EXFOSITION 'oducts!
.
I

DECEilIBER 1983

BUSINESS FORECAST SPECIAL ISSUE

2' llo. lO

Demand For Building Products To Expand in '84

Long Term Sustained Economic Growth Emerging Demographics Support Coming Upturn In Housing Warehouse, Off-Price Retailing Are Key lssues

Building Material Suppliers Expect Better Year '84's Looking Good But lt's Not Time To Relax

Home Center Merchants Head In Many Directions

Expanding Economy Nears Pre-Recession Levels

Housing Starts Could Hit High Of 1.75 Million New Market Opportunities For The lndustrious Interest Rates Remain The Big "lf" In Recovery

Home Repair & Remodeling Will Boost Building

Interest Rates, Money Supply Appear Favorable

Home Center Industry Matures, Finds New lmage

Publisher David Cutler

Editor Juanita Lovret

Contributing Editors

Dwight Curran. Gage McKinneY

WillAnderson

Arl Dircctor Martha Emery

Strff Artisl Carole Shinn

Circulation Dorothea Creegan

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.

ADVERTISING OTTICES

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FROM THE NORTHEAST: contao Joc Shee, 6l Maine Ave. F4, Rockville Centre, N.Y. I1570. Call (516) 67E-r625.

FROM THE MIDIilEST: contact Wryne Wcstlrnd, 1109 Willo*' Lane, Mt. Prosp€ct, Il. 6ff)56. Call (312) 437 -7377

FROM SOUTHERN CALIFORNIA: contact Cd Vrnn. A)5 Oceano Dr.. [.os Angeles, Ca.9@49.C l(2131472-3I l3 or (714) 549-8393.

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BTJILDING PRODUCTS DIGEST

b ot independently-owned publicotion lor the rctsil, wholesale ond distibution levels of the lumber and building supply msrkets in l3 Southem ststes.

Editorial Page 6 News Briefs 16 Home Center Merchant 24 Texas Topics 26 Arkansas/Oklahoma 26 Kentucky Report 27 Louisiana Outlook 27 Tennessee News 27 Personals 28 New Products 30 New Literature 34 Letters 38 Building Products Digest
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lriililitlllllffiii.li:tlililli.lffiiilt:;iiilliirlit*ttlij..:i:;:i:.i SERYICE$ trrriiirir Calendar 18 Classif ied 35 Advertisers Index 38 lii$iilri[itr:i,:r.r.r, DEPARTilE]|TS .{..1-$-B.ii:$.'ir-\-ttit+.:r.ittis:Irils:i a 8 9 to to lt 12 12 t3 14 14 l5 t5 17 Copyright 91983, Cutler Publishing, Inc. Cover and entire contents are fulll'protected and must not be reproduced in any manner without written permission. markets
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EDITORIAL

Just gimme the facts, m'am

lN THIS issue, the distinguished group of lforecasters we've assembled to tell you what to expect in the future are dealing mostly in terms of 1984-1985. We would like to move beyond those times about five years, to 1990. At that time, it is foreseen, videotext will become commercially available on a wide basis.

If you're thinking "oh, no, not another (expletive deleted) computer system to cope with," then brace yourself. That's exactly what it is, or more rightly, an extension of the computer.

Videotext will allow a customer seeking information to type his questions on a computer keyboard and receive immediate answers. The devices could be used by retail operators on their showroom floors. Wholesalers could field questions by allowing customers and suppliers to tie in with their computer videotext operation via telephone links to receive the information they need right from the screen in front of them. Tied in with a word processing device, this system, either at retail or wholesale levels, could even be programmed to produce written

responses to questions where appropriate. The computer at one place of business could instruct the computer at another place of business to have its word processor print out the answer, saving postage and the time involved in mailing.

These systems have been tested with mixed results. Time, Inc. has decided to shelve its proposed system until commercial prospects appear brighter. Yet today, certain statistical information is available from pioneering publishers, such as Random Lengths, via computer link ups. Braver forecasters see videotext in place and working on a mass basis within two to three years.

Whichever the case, videotext appears at this point to be yet another marvel emerged from the electronic labs to drastically change the way we do business. Like the computer itself, it will probably be another new product of the Age of Information that will be tough to do without. We may not like the change, but we'd better learn to cope with it.

6 ;ii$i{iiii:iiil,ii:ii-r.::}.}. Building Products Digest
l-TI t, Merry Christmas -llllD STIII-alltlll Post Office Box 668, Marshall, Tx. 75670 Q14\ 938-922r
DAVID CUTLER publisher

Home Center Hall of Fame

Steering committee members for the establishment of a Home Center Hall of Fame and a Home Center Leadership Council have been selected in anticipation of inducting the first members at the National Home Center Show, March ll-14, in Chicago.

William W. Adams, group v.p., Armstrong World Industries, Inc.; Carl Bicking, v.p., sales, Ace Hardware Corp.; Ray H. Cooney, pres., Scotty's, Inc.; Blaine W. Evans, v.p.-marketing, Abitibi Corp.; S.E. Feinstein, pres., Eclipse Industries, Inc.; William Fishman, pres., Marketing Services, Inc. and a columnist for this magazine; William Gamble, v.p., sales and service, McCulloch Corp.; R.E. Lundgren, pres., Palmer G. Lewis Co.; E.L. Newkirk, pres., Chandler Lumber Co.; Dwight Pardue, executive v.p., Lowe's Companies, Inc., will review council membership and coordinate the Hall of Fame selection Drocess.

1984 Show 90% Sold Out

The 1984 National Home Center Show, scheduled for Chicago's McCormick Place, March ll-14, is already 9090 sold out, according to Vance Publishing Corp., the show's sponsor.

"Demand for exhibitor space has been extraordinary," reports John F. Berry, director of convention services.

"It appears that more than 1,300 exhibitors will occupy all of the 300,000 sq. ft. of exhibit space," he said.

Show & Tell Sells Cuslomers

Audio-visuals can increase product sales as much as2,795s/o according to recent tests conducted in hardware, housewares and automotive sections of home centers in Canada.

The six month test was conducted with filmstrip projectors on l3 products. Positioned with the merchandise on an endcap, the audio-visual unit advertised one product during each two-week promotion.

A sensor in the unit activated the projector when shoppers entered a 9

ft. sensing area. It was observed that this method attracted shoppers and avoided the annoyance of a message being broadcast without an audience. After a two week promotion, the product and audio-visual program were changed.

Sales of each product were monitored for the two weeks prior, during and after the promotion. Newspaper advertisements were run for two of the products two weeks prior to the audio-visual promotion. This advertising produced fewer sales than the audio-visual program for both products.

Retail Sales to Hit New High

Annual retail sales for the building materials industry are expected to surpass $159.2 billion by 1986, with $577.7 billion for the four-year period from 1983 to 1986.

This increase represents a sales gain of more than 2690 over the previous four-year period from 1979 to 1982, according to a study conducted by Dun & Bradstreet.

Dun & Bradstreet used its Dun's Financial Profiles database with spread-sheet information on more than I million American businesses for its comprehensive analysis.

SEASON'S GREETINGS

November, 1983
7
NIIIZ
Gordy Martin Gary Malfatti Bob Haas John Blatchford

Vigorous home improvement demand

EMAND for building products will continue to expand in 1984 on the strength of a vigorously grow- ing home improvement market, a further, though small, increase in new home building and an accelerating pace of commercial remodeling activity.

In the home improvement market, all the key elements of demand are and will remain in place to support solid sales gains in the year ahead. First, higher levels of employment, a longer workweek and moderately increased compensation will combine to lift total wage and salary payments some l09o above this year's level. Of course, not all that increase will represent additional "real" purchasing power, as consumer prices rise by some 590. But the remaining 590 real income improvement that is expected is a lot more robust than that which has been realized in recent years.

At the same time, household balance sheets are in good shape as asset values (homes and common stocks) have risen faster than liabilities. Moreover, the debt servicing burden of households is lighter than it has been in more than a decade. Finally, account must also be taken of the personal income tax refunds that will again be forthcoming as a consequence of over-withholding in 1983.

On the new housing front in 1984, very little year-to-year change is expected in the average level of mortgage interest rates, although a modest decline may take place in the first six months. While interest rates will remain high enough to forestall a hous-

Story at a Glance

More increase in demand for building products in '84. small gains in home building . . morc commercial rcmodel. ing actiYaty. . morc dispos. able income will fuel increased buying activity by the public.

ing boom, money availability is ample and basic demand strong enough to support at least some small improvement in sales of both new and existing houses, as well as housing starts.

"Main street" commercial remodeling, espocially sensitive to interest rate levels and retail profitability, should benefit from stability in the former and marked improvement in the latter. At the same time, the overbuilding of new office space in many areas is prompting owners of older structures to modernize or see their vasmcy rate rise and their rents fall.

All in all, when 1983 and l9&4 are history, building product sales will have recorded solid back-to-back advances for the first time since 1978-1979.

Sustained economic growth ahead

lTlll"'*T

Forecast Issue, we predicted that 1983 would be a year of transition: a year of evolving housing recovery, but in an environment markedly different than in earlier business cycles. We said that emerging non-residential markets and deregulated financial institutions have per-

manently altered our business. Happily, housing recovery has begun- a stronger recovery than any of us had hoped. We think housing starts will reach 1.7 million units in l9&4-not including 290,m0 manufactured housing shipmens.

That is a remarkable demonstration of the desire of Americans to own their own homes. In 1983 our industry furnished housing at a rate above the post-World War II average-despite mortgage interest rates of 13-140/0, a $200 billion federal deficit, and the

highest level of unemployment in 43 years.

Nevertheless, three-fifths of the nation's single family dwellings are more than 15 years old-excellent candidates for renovation, repairs and alterations. Improving niw home values willpush R, R&A spendingup as much as l2tlo in 1984.

New non-residential construction will improve modestly, thanks to better corporate profits. But retrofit of existing offices and warehousesparticularly energy-related pro- jects-will become the largest nonresidential segment within several vears.

Despite much pessimism, many factors point to long-term sustained economic growth in theUnited States:

Story at a Glance

Stronger housing recovery than expected. .renovation, repairs and alteration spend. ing to climb. non.residential construction bolstered by retrof it proj ects . . good business climate for rest of decade.

new technologies employed by a maturing labor force in the largest and most stable free-trade area in the world.

The federal deficit is unacceptably high. But frnancial deregulation and lower income taxes allowed new personal savings to reach $210 billion this yearup 25 9o from I 980. With good management and good luck, this increased savings level will moderate interest rates long enough for recovery to help reduce the deficit.

Further, we think the election will confirm policies which encourage saving, investment and production, creating a climate for rational, Frofitable, business planning for the rest of the decade.

We think all of these factors point to a successful 1984.

Everything's in place for a good year

I FTERthree

Ilyears of recurring recession and aborted recovery, the expansion of the construction markets that took hold in the middle of 1982 looks like the real thing this time.

Building activity, activity, however, is up be-

cause interest rates are down and this is an important qualification. Demographics certainly support an upturn in housing, but the cost of money remains a key in the short term. Dr. Paul Volcker's reappointment was critical. Experience shows that recovery based on a sudden switch of monetary policy can be turned off as suddenly as it is turned on, butVolcker is a known entity and his moves can be anticipated, which provides an underlying confidence in the recovery.

So, what does all this mean for the business climate in 1984, and in particular for building products? There seems little doubt in anyone's mind that the economy's recovery is now firmly established and for once all the analysts seem to be in agreement. We are on the upswing through most of 1984, and continued growth should steadily absorb excess capacity and gradually reduce unemployment. Inflation will creep up, but not outside the $6Vo range, and increases in real disposable income and consumer confidence are good signs for the retail in-

dustry. As far as housing is concerned, with long term interest rates settling into a period of relative stability (mortgages around l3-l4s/0, although likely to move up and down a half point or so from time to time), we should see another year of 1.7 to 1.8 million unit starts.

The market for d-i-y has got a lot going for it in 1984. With sai-es of existing homes up, plus more cash available to the householder, the outlook is fairly bright. Everywhere there are indications that the consumer is getting smarter and smarter. Value is important, but so is quality. Because of ever increasing concern for personal security, consumers are looking for the reputable, high quality products to fill their needs in that area, and are prepared to pay the price for them. Value is the watchword.

The outlook for remodeling is also encouraging. Socially it is becoming very acceptable to take older buildings

Story at a Glance Economy on the upswing in '84. . .consumer becoming value conscious. .remodel. ing on fast track. .increased aggrcssive pricing, merchan. dising. ..more promotion ac. tivity.

and renovate them. People no longer want to knock down the existing structures and replace them with modern edifices. This trend, of course, is further strengthened by tax advantages and state and federal sup- port. The interesting thing about remodeling is that it spans the whole sp€ctrum from the single family home to major urban redevelopment schemes. Most of it is fast track type work and can bring good margins for both the contractor and his supplier.

There are several implications for the manufacturer, wholesaler and retailer. The critical thing to look for in 1984 is competitive activity; pricing will be aggressive at all levels in the channel and merchandising will become paramount. Look for increasing promotional activity, rebates, free gifts, special values and offers, and, of course, a growth in coop advertising.

Overall, 1984 should be a year of optimism. Traditionally a presidential election year brings with it an increase in business confidence and stabilitv. Recovery is established, but we aren't in an industry that will support complacency. It is a growing but aggressive and changing marketplace. To quote from Naisbitt's "Megatrends," the one thing that is certain about the future is that it will not be the same as the past. We are in a dynamic environment, those of us that face the challenges and changes and are able to adapt most quickly to the needs of our marketplace will be the successes in 1984 and beyond.

December,1983
9

Warehouse, off-price retailing key concepts in '84

rIHE actions

Iof the Republican administration and the Federal Reserve Board took hold in 1983 producing a moderate overall economic recoverywhile bridling inflation.

Lumber and building material sales and profits outpaced the general recovery, with lower interest rates and real personal income growth generating both increased levels of new housing construction and greater disposable income for home improvement projects.

Warehouse home centers, of which we, Home Centers of America, are a part, will continue to proliferate throughout the country. The formula, which has gained widespread attention in the building materials retailing industrY, includes:

(1) a warehouse-type facility ranging from 65,000 to 100,000 sq. ft. in developed retail areas;

(2) a minimum of 50,000 households within an eight-mile radius of the location;

(3) merchandise displayed on warehouse racks which heretofore was not readily available in breadths and depths of selection at discount prices; and

(4) more assistance available to the d-i-y customer.

Many observers have pegged the total market share available to home improvement retail warehouses at

Story at a Glance

Warehouse home cenlers will spread.. .total market sharc pegged at 10-15%. .home improvement, d-i-y to floudsh sustained growth for '84.

l09o to l59o of the total market. The correctness of this assessment is yet to be seen. However, with the home improvement and repair market forecasted to grow from $56 million in 1983 to $124 million in 1990, it would appear that home improvement sales at lumber yards, hardware stores, home centers and retail warehouses will continue to be available to the hardworking, aggressive retailer who pursues this market vigorously. This growth in the total market, including the d-i-yer, will be achieved particularly in light of the widening gap in the rates of inflation in handyman labor costs versus d-i-y products.

Most industry observers are touting warehouse retailing as the panacea of the '80s. It is my opinion that this format will be replicated with previously untested lines of merchandise by a wide range of retailers. Off-price retailers will flourish as the value conscious consumer will seek out brand narne merchandise for less.

In 1984, I will closely monitor interest rates and money supply growth as these two indices provide insight to new home building and business formations. I am pleased with the moderate recovery in 1983 and look forward to sustained slow growth in 1984. I feel the boom and bust economic cycles of the'7Os andSOs will become a thing of the past provided that the conservative economic policies of the Reagan administration are continued.

Retailers expect better times

lSBErrlFr,:'

means lmprovement and that seems to be the scenario anticipated by building material suppliers for 1984. It would be great to predict that next year will be "one of our best years," but many of the underlying uncertainties affecting the current housing recovery will still remain.

Indications of a better year during '84 are that while our industry will not hit that so-called 2,000,0(n ideal start figure, we will see a more constant improvement in housing starts, less up-

and-down movement in key interest rates and noticeable politically motivated efforts by Congress and the Administration to keep the economy growing, however slightly.

Housing again helped turn the economy around, but it was really a case of scmtching and clawing. Except for brief periods of under-1390 FHA-VA mortgage rates, the housing recovery was caused by pent-up demand, a "3l-Flavors" approach to mortgage financing, contractor buydowns, and, in some areas, extensive use ofmortgage revenue bond financing.

Many in the industry wore shortlived smiles during the first half of '83 when the lower and affordable mortgage rates caused a massive applica-

tion assault on the Veterans Administration. Unfortunately for building material suppliers, most of the applications were to refinance, to unload

fluctuation in key inteest rates...a better year, but many undedying uncertainlies .deales confident, but staying lean & mean and looking for sustained growth.

10 Building Products Digest
Sfory at a Glance
lmproved housing starts. less

the 16 and l79o mortgagesthatpeople acquired in l98l and '82. We won't have as much of that to face in '84 so when the federal mortgage rates go down again, it should mean more new construction and resales.

Efforts to control the federal budget deficit will play a great influence on housing starts and substantial remodeling projects. Any move made by Congress and the Administration to reduce the deficit will give a psychological lift to the economy. Commerce, industry, state and local government and the buying public just want-need-a sign that an effort is being made to restrain government's competition for capital.

Deficit reduction, coupled with the

ability of major corporations to use greater than anticipated profits in 1983 to finance expansion, will lead to a more constant, reliable flow of mortgage money. As Individual Retirement Accounts (IRA's) and similar savings programs grow, and if the deficit is attacked to any degree, there will be avery noticeablerelief on the existing pressure in the money markets.

Building material retailers are not unlike the Fortune 500 crowd. Durine the past three years or so, new marketi were explored, management efficiencies became the order of the day, and personnel needs were examined more closely. The improvements have resulted in less dependence on any one segment of the buying audience, more

Caution='84 can be tricky

I FTER

llthree years of gloomy eco- nomlc news, 1983 has been a solid recovery year for our businesses and many others. Housing starts have improved, key economic indicators have been favorable, inflation appqus under control and consumer confidence is up. Businesses are reporting profits that are well ahead of 1982 and all indicators point to continued growth in our economy in 1984 and beyond.

Now is not the time to relax. It would be easy to forget the lessons of the recent past and to slip back into the old patterns: high inventories, big staffs, unaffordable big wage and benefit increases, steep price increases and wasteful business practices.

Although the economy is rebounding and our business is improving, we feel there are plenty of reasons to be cautious. Here are a few:

. Interest rates continue to be high in relation to inflation. This has a negative impact on housing starts, home resale, industrial and commercial construction, inventory levels and consumer spending.

o Our federal government contin-

ues to spend more than it takes in through taxes. The huge deficits will not be addressed in 1984 (an election year) and will be difficult to reduce in the near future.

o Many countries around the world are on the verge of bankruptcy. As these economies contract, we lose export customers and our financial community is at risk if loan repayments are defaulted.

o Serious conflicts in the Middle East could escalate at any time and trigger another oil crisis in the world.

o In a nationwide survey, the Accountemps employment firm found that the average American wastes almost one-third of his or her work day. Couple this finding with the fact that productivity gains in America have been lower than many other nations and you will realize that we are losing our competitive edge.

Now is not the time to relax. Here are some things we axe doing to assure that our current improvement will continue:

Staying "in touch" with customers and determining what they need from us to be sudcessful. Wi are watching the trends in our industry and in our business so we will be in a position to adapt. Assuring that our business provides the level of quality in pioducts and services to keep us in a leadership position. Over the past

emphasis on effective overhead controls and fewer, but more talented, employees.

The dealers will not toss aside what they have leamed through necessity. At every meeting held by the National Lumber and Building Material Dealers Association or its 26 federated asociations, it is apparent that dealers intend to stay effectively lean, look to customer diversity, and continue to teach themselves and their employees what must be done to zucceed in good times and bad.

Dealer attitudes are positive, confidence has certainly been restored, and, in general, retailers look to 1984 as the lead year of a period of sustained growth.

year, for example, Stanley Tools has introduced a number of new products.

We are making significant gains in productivity each year. This includes improving methods, keep- ing up with new technologies, reducing waste and saving energy.

We have programs in place that motivate employees to contribute their ideas to keep our business competitive.

Our advice to other businesses is to use this recovery period wisely. Take advantage of the volume and profit increases to become more competitive. This strategy will enhance short term performance and put you in a position to weather the inevitable downturn in the economv or the sudden crisis brought on by world events.

Story at a Glance

December, 1983
Continued economic growth negative market factors in. dicate caution. action need. ed to assure currcnt upswing keeps going. .use recoyery pedod wisely.
11

Home centers new direction

lT",T*J:T'i:

mom and pop hardware store was bought out and became part of a hardware chain, and the corner lumber and building material dealer joinedaco-opbuying group to stay competitive and take advantage of the manY services not accesible to an independent operator.

Both expanded their product mix, ordered new signs, and overnight became home centers, offering a wider selection of products to the consumer.

The number of home center/ building supply businesses has decreased as larger chains have absorbed the mom and pop stores and found themselves vigorouslY competing with one another for market share.

This trend of the past 20 years, I refer to as "Image Building."

With the advent of the recent recession, beginning in 1979 and terminating roughly in Novernber 1982, a period of high inflation and high in-

Story at a Glance

New directions in Ftailing. . warehouse, price clubs, sPec' ialty storcs...no single an' swer is the conect marketing concept. .correct Position' ing vital.

ing oneself in the market properly to bsassured of adequate exposure and sufficient buyers to guarantee the success of an investment, both in good and in bad times, as the economic cYcle flexes up and down.

Neither is there a substitute for individualism-the firm that is innovative, that shows a creative spirit, that offers something new and differrent, that can catch the attention and create an atmosphere of confidence.

There are many ways to go to market, as evidenced by the past 20 years. The new warehouse retailing, price clubs and hardware specialty stores support this truth.

The heavily populated areas readily accept a marketing concept that fits comfortably into their buying habits, the large one-stop malls, big department stores and supermarkets designed for one-stop traffic conve-

nience, but this concept is not conducive to rural areas or srnall towns. The selective process is a very vital one to insure success in home center retailing.

Is there a riSht way to market Your producs? Yes, but more than one way, just as there is more than one wrong way. The key is daermining what is right for you.

Ask yourself, what kind of a market am I competing in? What is the extent of my coverage? Who is mY competition, now and in the future? What do the dernographics tell me about market and growth? Will it m€an a frestr look at mY marketing strategy five years down the road? Is my approach price image or do I emphasize and excel in sewicc? Art I consumer oriented or contractor oriented? Do I assume a low profile and build on sheer confidence, or do I assume an aggressive posture and strive for market share dominance?

The answer to these questions is vital to your marketing zuccess. There is room for any and all good operators. Pick out your niche and apply sound business practices and success can be a part of your charted course.

Continued economic growth in'84

terest rates brought a new direction in home center retailing-warehouse retailing.

This "Image Builder," attempts to convey price as the leading motivator to buy with large 70,000to 100,000 sq. ft. display areas and 25,m0 to 30,0(D SKUs piled high to create an atmosphere of intense activity.

We have come a long waY from the mom and pop store, but where do we go from here? We must be careful of overcrowding and attempting to look alike.

There is no substitute for position-

HE ECONOMY has moved ahead at a rapidpaceduring the first three quarters of 1983 following the recesion that ended last November. On this anniversary of sorts, it is im-

portant to review the forces behind the recovery and how these same factors will affect the economy in 1984.

The consumer has been the driving force behind the recovery registering strong gains in both the housing and auto sectors. Retail sales grew rapidly during the early part of the year and through the spring, accounting for nearly all of the 9.790 gain in second quarter GNP. However, much of the spending increases came at the expense of savings, so that despite

growth in both emPloYment and income, the pace was not sustainable. In fact, by the third quarter, the level of spending tapered significantly and the savings rate returned to a more ttnormal" range.

The business sector was somewhat slow to respond to the recovery early in the year exercising due caution following four years of sluggish sales. Increases in output were sufficient to meet current demand, but inventory liquidation continued into the spring. It was not until June and July that business production reached a level that p€rmitted some accumulation of socks. This rise in inventories was a key element in the 7.990 gain in third quarter GNP.

Against this backdrop of recovery, the Federal Reserve has pursued a narrow course between encouraging growth and maintaining control over inflation and the money suPPlY. As the economy began to gather mo-

12
Buildlng Products Digesl

mentum in the second quarter, it was accompanied by similar growth in the money supply. By May, the Fed determined that it needed to slow this money growth and interest rates began to rise. This particular decision to raise rates was especially difficult in light of the distortions to Ml and M2 related to the creation of the new

Story at a Glance

Economy makes transition to expansion phase. .housing starls near 2 million units. real GNP to expand 5olo, inflation at 41/zo/o. ..higher interest rates. saving more financially attractive. money market accounts. Nevertheless, by the end of the third quarter, all of the monetary aggregates had slowed and moved comfortably within their targeted ranges.

It is important to review the economic and financial developments of the past 12 months as they set the stage for 1984. Following a period of rapid recovery from a long recession, the economy is now making the transition from making up lost ground (the recovery phase) to breaking new ground (the expansion phase). Although it has taken ayear to do so, the economy has nearly moved back to pre-recession levels. As we enter 1984, we should look for continued growth in economic activity, but at a slower and more sustainable pace than we experienced in 1983. The consumer will re-emerge from the summer doldrums just in time for Christmas and remain healthy throughout 1984. Housing and auto sales will pick up and resume a moderate growth rate during the year. Housing starts should approach the 2 million unit rate but are not likely to cross it. Auto sales will also improve but to not more than 10 million units. These are respectable performances but they do not match the "boom" periods of the 1970s. We should look for this recovery to be slower than those of the past decade, but it will be more durable given the continuing presence of the Federal Reserve. Real GNP will expand approximately 590 year over year while inflation will remain moderate at 4VzVo as measured by the CPI.

Interest rates will begin to rise in the second half of the year as the economy gains momentum and the demand for funds clashes with the

Fed's control over the money supply. Until then, however, the combination of slow money growth and sagging business loan demand will allow rates to decline moderately into the second quarter. The projected Federal deficit of $175 billion in fiscal year 1984 will prevent any significant drop in rates. The posture of the Federal Reserve will be to maintain a lid on money growth so as to prevent a resurgence of inflation. To that end, the Fed will tend to follow interest rates down rather than lead any rate decline.

Over the course of the next several years, this expansion will differ from others in some key areas. The first is

that inflation will remain low, and with it the demand for goods. We cannot look for inflation to "bail us out" of unprofitable ventures through rising prices. This will also tend to curtail loan demand. On the positive side, however, labor costs will grow much more slowly. The current trend in labor negotiations suggests that this pattern will hold for several more years. Finally, the prospects for large deficits into the foreseeable future and tight control over the money supply will keep real interest rates at high levels for some time to come. Saving will become much more attractive than it was in the past.

Expansion to continue

IIY outlook

IUlfor 1984

is based on the following assumptions: that the Federal Reserve permits the basic money stock to rise about 6Vo in 1984; that federal government spending will increase about l09o compared with 8.590 in 1983, and that the federal deficit will be around $195 billion in calendar 1984 versus $185 billion in 1983.

These monetary and fiscal policy assumptions should be consistent with the economic expansion lasting through 1984. However, on a quarterly basis, the peak gowth for this expansion probably occurred in the second quarter of 1983. It is typical for growth to be most rapid in the early stage of an economic expansion. Nevertheless, on an annual average basis, growth of total spending (GNP in current $) should be 9s/o to llqo next year, up from 890 in 1983. Real output of goods and services should grow about 590 on average next year, up from 3.390 in 1983. The overall inflation rate should be 4s/o to 6t/0.

Interest rates rose in the last half of 1983 after bottoming out in May. Rates are expected to remain high next year and the average mortgage rate in 1984 will probably show little

change from the 1983 average. The major reason that interest rates are at such high levels relative to inflation rates is the high level of the federal deficit which keeps upward pressures on interest rates. The high

Story at a Glance

Spending, real output of goods and services increasing interest rates remaining high. .housing starts at 1.75 million. .lumber and wood product wholesale prices will rise about 8o/o. . .non-residen. tial construction robust.

level of interest rates relative to inflation is a depressant on all types of investment, including housing. High rates have also been a factor keeping the dollar very strong in foreigrr exchange markets, which has hindered exports and encouraged imports. The dollar is expected to slip in 1984, but by only about 290 on average compared to 1983.

The above economic assumptions would also be consistent with housing starts of about 1.75 million compared with an estimated 1.71 million in 1983. The rise in long term rates in the second half of 1983 will

(Please turn to page 22)

December,1983
13

We are on the right track

N November 22, 1983, we completed a 20-city schedule throughout NorthAmericaof memberRegional Meetings. Attendance at these gatherings hit an alltime 23 year record. More importantly, the outlook and confidence offorest products wholesalers and producers was up substantially from our meetings in l98l and 1982.

In a paragraph, the "consensus environment" among wholesalers was that volume is up; market levels are fairly healthy; there is strong pressure on margins; and it takes a lot of work to gamer profitable business. It is a very competitive marketplace, and there is a bit too much production.

It is association policy to provide a forecast for the coming year. Currently, the NAWLA forecast for 1984 housing activity is one of the most conservative. There are member firms that either believe or hope for stronger numbers than our 1.6 million prediction for 1984. Conversely, the other half of the market for forest products unrelated to housing looks better to the association than to some of our wholesalers who distribute in them.

We believe that the heavy industry industrial market for lumber and plywood will improve in 1984. Likewise, the do-it-yourself and remodeling market should be stronger as unemployment continues to decline. We also look for better activity in the farm market for wood products. While the midwest drought was serious, thecrops that survived will likely bring better prices and will get an additional boost

Story at a Glance

Wholesalers optimistic. .1.6 million housing starts. nonhousing market strengthening treated wood use on the in. crease. pretty good busi. ness for good operator.

from the PIK program of Uncle Sam.

Overall, we are optimistic about our forest products industry because we are on the right track for zustained profitable business. In fact, we could make the good argument that a 1984 "housing boom" of 1.8 or 1.9 million units might be counter-productive in 1985.

Today, our competitive climate prohibits "order-taking " Sales people are working harder and being more innovative because it is being required. This is healthy for our industry.

The manufacturer is seriously looking for new markets and is gearing up product promotion and effort for both

domestic and overseas markets. Western Wood Products has their Impetus program. The Southern Forest Products Association is heavily involved in export opportunities. The Canadian industry is promoting hard in both world and North American markets. This is heatthy for our industry.

The use of treated wood is on the increrse. Systems like the All-Weather Wood Foundation and the Plenum Floor System hold a great deal ofpromise. At the same time, wholesalerremanufacturers are incre-asing their activities in the smaller, but still viable, specialty wood markets.

In summary, business is going to be pretty good next year for the good operator. There is much promise for sustained good business beyond 1984. There will be new market opportunities for the industrious. Not a bad outlook for the New Year!

The big 33a1" is interest rates

THE year f 1984 should see a steady gain in the economic recovery. Theone big "if" in the housing industry is interest rates. If mortgage interest rates remain below the l39o or lower range, then the mid'80scould as "boom years."

someday be known

The population growth of married couples crossing the age 30 milestone during the decade of the'80sis about 40,000,000. This is the generation that will be looking and buying new homes providing there is frnancing available at realistic interest rates. Even if much of this demand is marginal, that is made up of households who can not afford new or used housing, this still amounts to a large potential market with substantial growth through the '80s.

Although we will see a gain in housing starts, the housing products produced will not be the same and all areas of the country will not share equally.

1984 will continue to be a year of cautious optimisrn. Channels of distribution will continue tight controls of inventory while expecting the manu-

facturer to respond with quick ddivery and high service levels. Builders arc starting to recognize that they must be bener marketers of their product; for example, realizing that quality locks can increase the sales of their product

Sfory at a Glance

Gain in economic lecovely due. .lower interest mtes could create housing boom .distributots' invenlotY con. trol. .builders need to martet prcduct. .consumer spending key to omodeling & reno Yation.

by appealing to the security interest of their potential custom€r.

As we approach the end of 1983, we are witnessing an increase in the onzumer spending which is another indication of the nation's economic recovery. This positive attitude in conzumer spending could lead to an increase in home rernodeling and renorration, which would also place high€r demands on residential hardware during 1984.

14
Building Products Digest

Housing and d-i-y revive panel market

ffi-ffiw

started to regain its health. We see an increasingly bright outlook for the structural panel market in 1984 and over the next five years.

APA's market research and economic services div. believes that under the best circumstances, with an easing ofshort-term interest rates and subsequent moderation of mortgage rates, there could be enough housing activity to generate starts at the 1.7 million plus level in 1984.

However, the association believes that even if interest rates are less favorable and housing starts are at a lower level, the 1984 election year influence has the potential to help the industry surpass 1983's strong performance. Our estimates for total U.S. structural panel demand are for ?fi.2 or 20.3 billion square feet in 1983 and about 21.9 billion feet in 1984.

In 1982, new housing consumed 3090 of total structural panel production. This year it will be closer to 4090. Of the remaining 6090 , the largest segment is home repair and remodeling. This market has been a savior for our industry during some very tough times. And we fully expect home-

Story at a Glance

Possible 1.7 million housing starts in'84. . .structural panel use in '83 20.3 billion sq. ft., next year, 21.9 billion ft.... housing will use about 40% .8o/o-10o/o increase in repair and remodeling.

owner activities to continue to accelerate during the recovery.

People are starting to move to new jobs and buy used houses that are prime candidates for "personalization through remodeling." Others are retrofitting for energy conservation. We should see an 8-1090 increase in homeowner activity next year from a very strong base this year.

We continue to be excited about the future prospects for the PerformanceRated Panel program. With it, the industry can continue to expand its product base, despite an ever diminishing and increasingly costly timber supply. New panel layups, thicknesses and species, plus the cost+ffective technologies for waferboard and oriented strand board will provide dealers with

a continued full line of structural panels at a competitive price.

An educational job is ahead of us. Dealer salespeople needto know what to specify, how to read and use Span Ratings, where to go for detailed information and what applications are appropriate for these products. APA is geared to provide this education.

New literature and advertising are being made available. Field men will conduct meetings and training sessions to support this program.

Our enthusiasm for the future is based on the expanding market horizons we see. As the American Plywood Association looks to the future, dealers will continue to be critical to the success of the structural panel industry.

Distributors optimistic

EACTS and f figures appear from all sides to conflrrm the dramatic rebound of the building material industry during 1983. Whether it was the turn around in new residential housing, the restored buyer confidence in home repair and remodeling, or the smiles on the faces of most of the nation's building supply retailers and wholesalers, the evidence was clear: a devastating three-year industry recession had faded away-and not a moment too soon.

In the light of this recovery, what about the future. What will happen in the year ahead? Will 1984 see a continued rise in building material sales? For a number of reasons, it appears that 1984 will build on the momentum that has been established in 1983. Nevertheless, one should be cautious.

The building material industry is not headed for the lofty levels and figures experienced in past years. 1984 will be a good business period for most, but financial pressures, while favorable now, can change and throw a "wet blanket" on an industrv sensitive to interest rates and money supply. At the moment, both factors are favorable. Interest rates have been

stable and may come down slightly through the winter months. A significant rise in personal savings has restored deposits to levels not seen in three or four years. Funds are available for new residential mortgages and for remodeling loans at rates many consider acceptable. This is confirmed by the inventory of both new homes and existing older homes decreasing during thethird and fourth quarters of 1983. Like Mark Twain's death, the rumor about the end of the fixed rate home mortgage was greatly

Story at a Glance

Momentum will continue in'84 . . interest rates, money sup. ply lavorable. warehouse re. tailing to go nationwade. year of opportunity.

exaggerated, and its return has made potential buyers more comfortable about the purchase ofhomes and condominium units.

Money has been discussed first in this forecast because, in the opinion of the writer, whether we are wholesale or retailers, homebuilders or remodeling contractors, our respective busi-

(Please turn to page 37)

December,1983
15

Sutherland Lumberis opening a 40,000 sq. ft. "warehouse Plus" operation in Euless, Tx., in a former Value Lumber facilitY... 84 Lumber Co. opened a new store in Winchester, Ky. .HandY CitY has completed remodeling of five Atlanta, Ga., units with renovation of Lilburn and Sandy SPrings stores underway.

Home Centers of America,San Antonio, Tx., willopen two stores in Houston by Feb. and one in Lubbock by March.. 'West Building Material Centers, Atlanta, Ga., is readying its l5th store

.Home Depot Inc. has oPened new warehouse operations in Clearwater and West Palm Beach, Fl.; a St. Petersburg, Fl., unit will open in early'84..

Handy Dan, SanAntonio, Tx., has opened a warehouse-type unit in Houston ..Lowe's will oPen new stores in Douglasville and Griffin, Ga., Springdale, Ar., New lberia, Ld., and Mauldin, S.C.,by Jan. I ...Wickes Lumber has added a $25,000 storage facility in Lake City, Fl..

Dixie Lumber Co., CherrYville, N.C., gave away home comPuters in a recent €rpet promotion. Crasslin Supply Co., Smyrna, Eagleville and Franklin, Tn., is celebrating its 50th year in business

Morlow Lumber Co., Marlow, Ok., is observing its lst anniversary. . .Moore Lumber Co., Lewisville, Tx., suffered extensive damage in a recent fire.

Brannock-Lynch Lumber Co- is new in Rural Hall, N.C. ...Swtft Supply Inc., Atmore, Al., has acquired the Homecrafters Centerin Andalusia, Al.. GaddY Lumber Co., Fayetteville, Ga., is celebrating its sth anniversary.

Pensacola Builders Supply Co., Pensacola, Fi., received a 50 year membership award from the Florida Lumber and Building Material Dealers Association.

Lee Suthard has formed Reliance Treoted Wood at Greensboro, N.C. ..American International Forest Products, Portland, Or., has opened a new office in San Antonio, Tx., to serve Southern customers .Chicago Mill& Lumber Co. has sold 6,100 acres to the Tensas River National Wildlife Refuge near Monroe, La..

The Hattiesburg, Ms., treating plant of Timber Realization Co. has been sold for an undisclosed amount to Southem Wood Pre' serving, Inc., owner Roy A. Smith; Bubba Lammons is sales mgr.; the existing product lines will be expanded to include specialty products; the 20-year-old plant has been modernized several times.

Firestone Industrial Products Co. has begun initial production of RubberGard roofing at its new Prescott, Ar., facility .Glidden Coatings & Resins has purchased PPG Industries's Selectron gel coat resin and gel coat technology for an undisclosed amount. Thermal Profiles, /nc. will construct a pvc window fabricating plant in Jacksonville, Fl..

John T. Cole & Associates, celebrating their 5th year in busines as forest products search and placement specialists, have moved to larger quarters in Beaverton, Or. ...Delto Pine Plywood Co., Beaumont, Ms., has been acquired by Warren Hood, Jr., who is operating it as Beaumont Plywood Corp..

Building Products Digest

Hoover Universal's Wood Preserving Div., acquired by Ply*Gem Industries,lnc., is now operating as Hoover Treated Wood Products. . .Rubbermaid Speciolty Products Inc., is handling sales from its new Statesville, N.C., manufacturing and warehousing facility.

The Louisiana-based Sv'ain Group of companies has opened a new wholesale firm West Houston Fra m in g Co., primarily producing framing packages, in Brookshire (Houston), Tx., Eddie HacskaYlo mgr.; Swain plans on opening a Dallas facility next spring, Mark Swain, brother of Swain pres. Wm. Swain,will manage it.. .the Swain goup anticipates a total volume of $25 million annuallY bY mid-'84, rising to $50 million bY mid-'85...

Louisiana-Pacific Corp. has Purchased a Lockhart, Al., sawmill and wood preservative treating facility from TMA Forest Pro' ducts for an undisclosed amount; the acquisition along with the recently acquired MolPus Co. sawmills in Philadelphia, Ms., will be added to the Southern Div., headquartered in Conroe, Tx...

Brown Wood Preseming Co-, ^fnc., Louisville, Ky., is retooling to become a CCA lumber treater ...Snavely Forest Products, Pittsburgh, Pa., which has branches in Phoenix, Az., Denver, Co., and Medford, Or., will be opening a new distribution fac{ity in Dallas, Tx., soon after the first of the year . . .Pate Lumber Co., Inc. is a new firm oPened in Jacksonville, Fl., by StePhen L. Pate...

Housing starrs declined in Oct. (latest figs. available) to a seasonolly adjusted annual rate of 1,608,000 unirs, down 3.890 from the previous month's t,672,W unit annual pace, but up 40.890 from a year earlier...permis increased 3.9V0 at an adjusted annual rate of 1,565,000 units .apt. starts rose l.7s/o; singlefamilv-home starts slide 7.2t/0.

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Home Centers 1984: A Year of Positioning

HE DO-ityourself industry is huge - $45-plus billion at retail in 1983. But it is a far different industry than it was a few short years ago.

High inflation in the late 1970s, two years of recession in the 1980s and a maturing of the home center market have brought permanent change.

During the 1970s, when home centers were in an explosive growth stage, sales volume for the industry grew at better than a 250/o average annual rate. This year, as the indgstry recovers from recession, home center sales for the first threequarters were running l29o ahead of a slow 1982. Home Center Institute projections through 1990 show average annual sales growth at about 1490, still substantial but slower than the boom years and a sign of a maturing industry.

As that maturity develops, the battle for do-it-yourself dollars is intensifying as new types of do-it-yourself retailers come into the marketplace. And the do-it-yourself consumer has changed, has become more price conscious, more value-oriented, more sophisticated, better educated, more experienced.

The newest competitor is the warehouse home center. Although the concept was brought to reality in Atlanta four years ago, it was not until this year that warehouse home centers literally burst into the do-ityourself market.

Home Depot, well entrenched in Atlanta, moved into Florida markets, then into New Orleans to compete head to head with w. R. Grace's HouseWorks; other retailers jumped into the market primarily in Texas, Florida and California.

Most offer the customer few amenities, but they do offer low prices, broad assortments of all hardware and building material related lines, and, in some cases, welltrained salespeople. The salesfloors are huge, in the 70,000 to 90,000 square feet range; merchandise is stocked to the ceilings, moved in with

forklifts; and customers are expected to pick up and move their own purchases in exchange for the low pnces.

As fast as these retailers have sprung up, as much volume as they are moving in a year's time (they figure to do something like $15 million annually per store), they seem to most industry observers to be a major metro phenomenon.

It takes a population base of at least 150,000 to support just one of these large warehouse home centers. This limits their potential locations to about 4O cities, and reasonable estimates of the total number of units that could be supported in the United States place the maximum at 400. Further, these warehouse retailers are expected at maturity to account for only about 890 to 1090 of total do-it-yourself sales.

Although the physical numbers may be limited, the impact on home center retailing, especially lumberbuilding material retailing, is substantial and far-reaching.

Home Center Institute studies done in the Atlanta and New Orleans markets document how warehouse home centers can affect other retailers of hardware and building materials.

They have the potential to make profound changes in where consumers buy lumber and building materials. An HCI study of the Atlanta market indicates clearly that consumers go to home centers and warehouse home centers for lumber purchases to the exclusion of traditional lumberyards!

That study put home centers'

Sfo4r at a Glance

Home center induslry $45 billion at rctail. . .d.i.y custom. er maturing. . .warehouse im. pact substantial. . .home centers' effect on lumber sales. .retail advertising's role in price perceptions.

share of do-it-yourself lumber sales in the total United States at 520/o of the market, lumberyards at 4lt/o; in Atlanta, however, home centers have 4890 of the market, home center warehouses 3590 and lumbervards TVzolo.

The reason?

Heavy, aggressive advertising that delivered a strong price-value message. The warehouse retailers planted the idea that they were the Iowest priced retailers in town, not always true as HCI research found, but the "perception oflow prices can be reality" when consumers choose where to shop.

The warehouse home centers delivered their message powerfully in advertising and reinforced it with a salesfloor presentation of merchandise that shouted low price and quality goods. The lumberyards in Atlanta have not conveyed a consumer orientation.

In a "marketbasket" study that checked prices of identical items in hardware stores, lumberyards, discounters, home centers and home center warehouses in New Orleans. HCI found that in actual fact the hardware store and lumberyards, for example, had lower prices on many of the items but consumers thought the warehouse home center was lower priced across the board. lower even than K-Mart.

The HCI study in Atlanta found these factors to be of greatest importance to do-it-yourself consumers: good value for the money, quality merchandise, low everyday prices, good sale prices, wide variety and selection of merchandise, adequate stock of advertised specials, knowledgeable employees, easy return policies, and quick checkouts.

It further found that in Atlanta and New Orleans, customers perceived the warehouse home center as being the best retailers at providing those factors.

The ramifications of this new, intense competition for do-it-yourself dollars for traditional home centers and lumberyards center on the need to recognize the changes in the consumer and to find a special niche in the market for each store.

Although consumers may be price conscious and/or price aware, a ma- jority of the consumers still value quality goods, service, and convenience. How each retailer decides to go to market depends on his own strengths. Pure price is one way; but specializing in service, a convenient location, customer assistance and top quality merchandise are equally effective ways to position a store in a competitive market.

December,1983 17

."Trrge w,il;;;trd

CALENDAR

DECEMBER

Americen Wood Pnservcrs BurceuI)cc.6, annual meeting, Sheraton Hotel, Arlington, Va.

Society of Americrn Wood PrcscrversDec. 7{, annud meeting, Sheraton Hotel, Arlington, Va.

Builder Mlrts of Americe, Inc.-Dcc. lll4, computer demonstrations, Greenville, S.C.

JANUARY

Moorr-Handley Inc., Hrrdwrrc lliv.Jen. 7{, spring & summer merchandise mart, Birmingham,/Jefferson Civic Center Exhibition Hall, Birmingham, Al.

Lumbetmen's Associrtion of Texrs-Jen. l0-t2, averting financial crisis seminar, Waco, Tx.

Building Meterid Merchents Associrtion of Gcoryie & AlebamrJrn. 12-14, 1984 buying show, Downtown Atlanta Marriott, Atlanta, Ga.

American llerdwrre Supply Co.-Jrn. 17-lt, lumber l9&4 market, Orlando, Fl.

Nationd Associetion of Home Builders-Jrn. 2l-A, lg84 convention and exposition, Houston Astrohall-Astrodome, Houston, Tx.

Lumbermen's Associetion of Texes-trn. 26, supervisory skills for the yard foranan serninar, Dallas, Tx.

Mid-America LumbermeasAssocirtion-Ju. 2G27, MidAmerica building products exposition, Bartle Hall, Kansas City Convention Center, Kansas City, Mo.

Lumbctuen's Associetion of Texrs-Jen. 30.Fcb. l, basic estimating seminar, Houston, Tx.

FEBRUARY

Louisirns Building Mrterid Deelers AssocietionFeb. 2-5, annual convention, Royal Sonesta Hotel, New Orleans, [-a.

Americrn Herdwarc Menufacturcrs AssocietionFeb. lt14,. Winter National Hardware & Home Center Show, [.as Vegas Convention Center, Las Vegas, Nv.

All-AmericanCorpary,

Coastal Lumber Company is the second largest producer of handwood lumber products in North America. Spcializing in kiln{ried. high grade Southern and Appalachian h,ardwoods. Coastal Lumber produces a complete product line: Red &k, White Oak, Yellow Fop lar, Tupelo, Gum, fuh and Em as well as other species native to the regions. The indusfiai division stocks an inventory of hardwood timbers and cants treated with CCA, for use in special indusuial applications. Coastal Lumber Company meets all pur hardunod needs.

Coastal Lumber Company has a full line of Tidewater Red Cypress, Southern & Appalachian fhrdwoods, Southern Yellow Hne. PermaTieat@ hesure Treated Lumber, and Hne Hy*ood products in truckload or carload quantities.

For further information contact:

Coastal Lumber Co.. P0. Box 829. Vftldon. NC 27890 Phone: 919/536-42 I 1

Nationel Roofing Contnclors AssociedonFct. l+l7,ylth annual convention & exhibit, Georgia World Congres Center, Atlanta, Ga.

Lumbcrmen's Associetion of Texrs -Feb.16, recruiting, interviewing, selecting the right employee seminar, Austin, Tx. Georgia Gepter, Netiond Associetion of RemodelctsFcD. 24.25, second annual Southeasern remodeling show, The Waverly, Atlanta, Ga.

Builder Msrts of Americe, lnc.Feb. 2&iler. I' l3th annual Independent's Days products & management services expo, Atlanta Hilton Hotel, Atlanta, Ga.

Want to sce your organization in print? Scnd us information including date and plae on your ncrt meding, convention, or social cveot for the Calcndar. Please make sure that we reccive it rt lclra ir weeks rherd of the drtc and be sure to include your name, address, and telephone number.

Building Products Digest ir- .\h*r:.T*11#Lit$4.*oF.tffi*}?+ffi
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rClFlC, Rounds, Cloverdale, California.
Been a Long Time Coming Manufactured and distributed by People in the Lumber lndustry Performance Coalings Inc, P.O. Box 478 360 Lake Mendocino Drive Ukiah, CA 95482 (707) 468-0176 Outside California - 800-468-8820 California - 800-468-881 7
It's
UKIAH PLAYERS THEATRE

DILL

(Continued from page 13) depress starts to around a 1.70 million annual rate in the first quarter, but starts should increase in the second quarter and level off in the second half. Single family starts should increase to 1.3 million while multi-family starts should decline to .63 million next year. Mobile home shipments are exPected to increase to .36 in 1984. Additions and alterations to residential properties should grow about 990 in real terms in 1984.

The median sales price of a new one unit home should increase from an average of about $75,000 in 1983 to about $80,000 in 1984, an increase of around 790. Wholesale prices of lumber and wood Products are expected to increase about another 890 on average next Year, somewhat higher than the general inflation rate. Nonresidential construction should gradually pickup strength through 1984, increasing about 590 with commercial construction pacing the growth. The price of nonresidential structures should inflate about 590 in 1984.

Residential construction activity rebounded in most parts of the Southeast in 1983 but increases in

long term interest rates caused a leveling off in housing activity late in the year. The recovery in manufacturing production and employment should bolster the demand for housing in many of the manuf acturing areas of the Southeast. Howwer, housing activity in the region will be leveling off at a higlr rate in 1984 just as is occurring in the nation as a whole. Nonresidential construction contracts were much stronger in the Southeast in 1983 than the U.S. as a whole, with the exception of South Carolina. This robust level of contracts will insure substantial nonresidential construction activity throughout the region in 19E4.

While the economic expansion should continue into 19E5, major uncertainties still exist. The major

Hardwood Annual Optimistic

More than 1,353 optimistic hardwood people attended the 86th annual National Hardwood Lumber Association convention in Boston, Ma., Sept. 26-28.

Opened by president John Veach, the assembly heard speakers including George Putnam, The Putnam Management Co., Inc.; Alex

one is the potential impact of the large federal deficit. The federal deficit amounting to 590 of GNP is unprecedented during an economic expansion and could produce unprecedented results, mainly a sharp increase in interest rates early in an economic expansion. Also, the debt problems of some developing countries remain unresolved and could result in significant disruptions in credit flows, international trade, and interest rates.

On the positive side, productivity growth contines robu$ and inflation has generally been less than anticipated. Continued slow inflation would greatly enhance the prospects for economic expansion in l9E4 and 1985. These uncertainties aside, 1984 should be another prosperous year for the nation's oconomy.

Bernhardt, Bernhardt Industries, Lenoir, N.C.; William C. Baldwin, National Wood Pallet & Container Association, and Donald Meyer, Baillie Lumber Co.

Robert Henderson, Miller & Co., Inc., Jackson, Tn., Roger Patterson, Miller-Patterson Lumber & Timber, Inc., Des Arc, Ar., were irmong the six new directors elected.

22
Bullding Products Digest
Cameron Central Distribution A Division of CertainTeed Corporation g To All Our Good Friends and Customers, A Very Merry Christmas and a Happy New Year. Weiser Locks * Ge6er Spindles * Staple Guns * Staples * Dowels * Caulking Guns CamEron Cenlral Dislribution P.O. Box 889, Waco, Texas 76703 Telephone (817) 754-4631

STRENGTH

It's impontant to you, because it means we can do a betten job fon you, the way you want it perfonmed. With oun extensive activity in the manket, we know whene to find what you want at a fain pnice.

Amenican Intennational Fonest Products' manket and financial stnength wonks fon you. You can be confident that oun pnices ane likely the most favorable. And you'll be dealing with a company that has eanned the tnust of its customens by maintaining the highest ethical standands.

Pnoducts we sell include dimension lumben and mixed boands of all types, Southenn yellow pine, redwood, cedar, shakes, shingles and plywood. Our strength means you can nely on us to pnovide you with the pnoducts you want, the way you want them, at competitive pnices.

AN AMERIGAN INTERNATIONAL FOREST PRODUCTS, INC. P.O. Elox 4'l 66, Portland, O''. 972O8 Toll free number: [8OOJ 547-1166 In Taxae: [8OOl 292-5533

-t-- Western rlf Turninss T & Stair I

Home Center Merchant

Bill

& Affiliates

11650 lberia Place

San Diego, Ca.92128

HEN PEARL Harbor was attacked I was in junior high school. I was also working in Meltzer's Drug Store in the Bronx, after school and on Saturdays. That was my first job. I made two bucks a week plus tips. It's been years since I thought about that drug store. It c.rme to my mind today while I was shopping at a home center.

Meltzer's was the classic pre-war pharmacy. No soda fountain. lt smelled hospital clean. It was my job to keep it that way. We used CN in the wash water as a disinfectant and each week I washed glass cases that covered all the perimeter walls within the store. The upper cases were hung from the ceiling. To reach them required a rolling ladder that hung from a railjust like at the library.

I'll bet there weren't 300 SKUs in that drug store. Mostly the cases contained the patent medicines of the day. Cod liver oil, Lydia Pinkham, Doane's Pills, Dr. Lyons Tooth Powder, Ipana, Pepsodent, Carter's Little Liver Pills, Ex-Lax, mustard plasters, Lifebuoy and Palmolive soaps, Vicks and hot water bottles. Mr. Meltzer and his assistant Joe mixed their prescriptions with a pestle and mortar. They also sold a lot of postage stamps, removed splinters from customer's eyes, and prescribed patent medicines for colds, coughs and backaches.

The newest store in my neighborhood today is a Sav-on. The sign above the door on the outside of this new building reads Sav-on drug store and home center. To the left and right of the entrance are other bold signs that read "Liquor," "Pharmacy," and "Garden Center." The store is beautiful. lt's bright, clean, open and has nice wide aisles that make it easy to shop. The signing is simple, bold, easy to see and makes it easy to shop if you're in a rush.

Sav-on Drugs is a chain of 165 stores. Most are large, full line drug stores carrying the typical health and beauty aids and the more common nondrug hard lines and soft lines that you find in the 1980s California supermarket and super drug store. This new store in my neighborhood, however, is one of the l7 Sav-ons that are also home centers.

About 15,ffi square feet are devoted to the product lines you'd expect in a home center/building materids store. Of course, they're not totally complete. Don't expect to find enough materid to build a giuage or even a fence. Their paneling display is limited too. For a major project I would still have to drive the 8 to l0 minutes to my nearest Handyman, Builder's Emporium, Dixieline or Boise Cascade.

But for the typical, everyday fix-upand maintenance needs this new Sav-on fills the bill. They stock dimension lumber, moldings, doors, plywoods, a complcte paint department, plumbing, elcctrical, tools, hardware, gardening supplies, outdoor furniture, wet nursery, automotivc, pool and spa needs and the fas moving sporting goods and house,vares. ln most product categories they're more complcte than the local Ace store that used to be theonly game in town. Sav-on peoplc are a little younger and greener than rhe Ace store personnelbut they're also not as rude and patronizing.

The purist will frown at the Sav-on Home Center concept. "After all they're just creaming the traffic items. They have no depth of inventory in their stores. Their selection is limited to only thc fast turn items. They stock 2 x 4s only in eight foot lengths. They charge 59.79 for t/2" CDX while everyone else's advertird price is around $7.49." All true.

So areall the othercliches you use when you talk about "outsiders" selling your product lines. Yes, you can vnell popcorn in the store. They even have an ice cream counter. And they may never win anybody's Home Center of The Year award. But, they have found a niche in the marketplace. They are drawing customers. And they are selling product categories that five years a8o wcre found only in lumberyards.

What does this mean to you as a retailer? It means you've got to do things better than you've done them before. You've got to buy bctter, promotc bctter, display better and be "more avaihble" when and where the customer wants to shop. Most of all, you've got to continuously keep an eye on your compctition. All your competition. There may be some things we can all learn from these dabblers.

24
Building Products Digest
CALL OR WRITE FOR OUR CURRENT CATALOGS: lertern ? Turoingr t,\ i,:{'',ffi ll oak&Beech " i CATAL0G 301 iNlnNssFs# ",.....:",*-.. ,'..- ' -"" ffi, "w i cRrlloo ror . TURNINGS , Spindles, i Porch Posts, I Newels, Posls, 1 Tops & Drops, itA|ALUTJ JUI r ! WONDERAILPre-Assembled ,i" Stair/Rail System in 2' to 14' Lglhs 29'& 35' Hts. CATALOG 401 MARBLEINE COLUMNS Stock Sizes 6o x 8' to 12n r 16', including Caps & Bases CATALOG 201 STAIR PARTS Balusters, Newel Posts, Starting Steps, Fittings, Rails, Etc. in Hemlock, Red Oak & Beech o;rb(ei*e ,rt19:rgd:l.9oJs'F ' Western Turnings & Stair Company National Sales Office: 5301 Vasquez Blvd.. Commerce City, Colo. 80022 (303) 295-7609
Company

Dealers see brighter future

IIORE positive attitudes retUlgarding business conditions in 1984 were expressed by the majority of dealers attending the annual meeting of the National Lumber and Building Material Dealers Association. Favorable f inancial conditions and a strengthened economy were cited as bolsters to improved industry business.

William J. White, president of the Masonite Corp., told the dealers to look beyond their valued builder and contractor customers to the repair and remodeling markets which he forecast to be the real growth areas. He said that "no real growth has occurred in American new housing construction since 1946," He noted that when business cycles are eliminated, statistics show that housing starts have averaged around the 1.5 million mark for the past 35 years. He envisions no expansion through the year 2000.

"Your opportunities depend on where you do business; on how your market and community are growing;

and on local demographics. It also depends on which customers you solicit and your specific mix of builders, remodelers, contractors and consumers. You must differentiate your operation from the competition to best serve your selected customer, " White counseled.

Nationally recognized transportation expert Wally Lynch, who has worked with NLBMDA in developing studies on delivery practices, was one of a number of authorities presenting seminars during the convention. Lynch also writes articles for this magazine on control of transportation costs. Other seminars and presentations included computer use, new product selection, advertising, passing on the family business, Washington legislative developments and the Mortgage Retirement Account.

Popular tv personality and author Art Linkletter was on hand to honor NLBMDA's Past Presidents with a well received talk. The meetings were held at The Pointe Resort, Phoenix, Az., Oct. 8-12.

Next year's meeting will be held in New Orleans, Oct. 3l-Nov. 4, concurrent with the 1984 World's Fair, at the Fairmont Hotel. In 1985, National will meet at the Westin Hotel, Seattle, Wa., November 17-21.

William R. Morrow of Lawson, Mo., was elected president of the National at the 67th annual convention.

Owner of Morrow & Sons, he succeeds P. B. "Bud" Howe, Carver Lumber Co., Peoria, Il. Howe became chairman of the board of the association which represents some 10,000 lumber and building material retailers through 26 federated state and regional associations.

Others elected: first v.p., Patrick McCormick, McCormick Lumber and Fuel, Madison, Wi.; treasurer, Gerald A. Jewett, Jr., Jewett Lumber Co., Des Moines, Ia.; and secretary and executive v.p., John M. Martin, Washington, D.C.

Regional vice presidents elected: Edgar Harman, William Morton, J. K. "Ken" Borders and Merle Mensinger.

ls' fx-9__
:;,Jdl \ "u k .!p ii s\ t bO s s a 6 s
h
S0UTHERI{ERS (1} Janice & Carl Tindell, Ruth Berryman, Virginia Adams. (2) Grady Haynes, Ken Johnson. (3) Dean Leaman, Leon Mellow. (a) Bud & Laurie Howe. (5) Gerry & Judy O'Connell, Gerry & Bonnie Boland. (6) Erv Goodroe. (7) John Garten, Jack Summers. (8) Libby Garten, Jane Baker, Mary Huber, Diane DaSilva. (9) Rowan Saufley, Jim & Nanette King. (10) Maxine & Henry Herder, Jane & Bob Baker, Lou Gentry. (11) Debbie, Don, Jean & Don Smith.

TOPICS

IIHIS office has learned that eight I retailers in the San Antonio area have been cited under two "abusable glue or aerosol paint" laws recently passed by the state legislature and which

became effective on Sept. l.

The two laws were contained in Senate Bill 108 by Vale and House Bill 283 by Luna. Several paint distributors and manufacturers have distributed notices on the San Antonio action to retailers throughout the state.

It should be emphasized that these are state laws which are enforceable statewide

and every dealer in the state who rlls or displays these products will come under their provisions. How€rrer, the problem is more acute h San Antonio because of some body shops in the city which make it a major portion of their business to sdl these products to youngsters under the age of 17.

Since the laws rcstrict the age of the purchaser, L.A.T.'s attorney, Robert Bass, advises "A strict policy of requiring identification of purchasers for all such sales should be instituted and signs to that effect should be displayed in prominant areas of the stores." S.B. l0B restricts the display of such products and Bass rccommends ". such products should be placcd in locked and caged areas, or behind a counter that is regularly closed off to the public, or in a segregated area of the store with its owrr check-out facility."

If the following chemical compounds are contained in any product, other than gasoline, aerosol paint, glue or adhesive cement, and federal law requires labeling for precautions against inhalation, the retailer must not sell the product to a minor.

ANUFACTURERS and wholesalers in the building materials industry will show their products and services to retail lumbermen and home center operators in the Mid-America states in Kansas City, Mo., on Jan. 26 and27, 1984, in Bartle Hall.

This year's convention and exposition will be the 96th Annual for the lr{idAmerica Lumbermens Association. Over 200 firms will participate in the trade show and convention, which draws over 3,000 people from Arkansas, Oklahoma, Kansas, Missouri and Nebraska.

With the incline in the housing starts and the manufacturing industry, this year's convention preparation took off at a fast pace. As of November, convention booth space sold exceeded the total sold for the entirr convention last year.

In songs, Kansas City is the home of the l2th Strec Rag and the place where "everything's up to date." In literature, it's the place where a young reporter named Emest Hemingway learned to "eschew verbiage" while writing for the Konss City Star. In history, it's the gateway to the West, the place where outfitters stocked wagon trains bound for California gold or adventure in Spanish Santa Fe.

Today, 250 miles from the geographic center of the United States, Kansas City is a heartland metropolis renowned for fountains, food and jazz. luih sn gently-rolling forested bluffs above the broad Missouri River, the city surprises visitors with its graceful boulevards, sparkling fountains, world-class museums and theaters, inviting shops and restaurants.

Plan to attend the 1984 Mid-America Building Products Exposition and Winter Buying Market.

The volatile chemical ingredients include acetone, carbon tetrachloride, chloroform, cyclohexanone, ethyl acetate, hexane, methyl cellosolve aoetate, methyl ethyl ketone, methyl isobutyl ketone, toluene, trichloroethylene, xylol or xylene, trichloroethane, methanol, amyl nitrite, butyl nitrite, diethyl ether, petroleum distillate, aliphatic hydrocarbons, chlorinated hydrocarbons, ketone solvent,glycol ether solvent, glycol and ether inter solvent.

Volatile solvents requiring nonaccessible displays as well as not bing sold to minors include acetone, amyl acetate, benzol or benzene, butyl ac€tate, butyl alcohol, carbon tetrachloride, chloroform, cyclohexanon, ethanol or ethyl alcohol, ethyl acetate, hexane, isopropanol or isopropyl alcohol, isopropyl acetate, methyl "cellosolve" acetate, methyl ethyl ketone, methyl isobutyl ketone, totuol or toluene, trichloroethylene, tricresyl phosphate, xylol or xylene.

Lumbermen'e Accoclatlon of Texac P.O. Bd 5515, Ard!, Tr. Ttt63 (tf2) a72-fr9a
26
€xecutfi,€ r,lce pesldent
NAVAJO PINE FROM SUSTAINED YIELO FORESTS
Bulldlng Products Digesl
OUALITY $":1.f..-t*"; . . , from the Land of the ilauajo BETTER PRODUCTS-AND WELL WORTH IT PONDEFIOSA PINE LUMBER. MOULDINGS AND MILLWORK. FLUS PATNCLEBOARO osLr $ Joe Shipman, generd sales manager, all prodwts Elvira Mirchell, prticleboard sales Mitch Bmne, rnillwork & lumber sales cv'g. --g- NAVAJO FOREST PRODUCTS INDUSTRIES P.O. Box 1280 Navajo, New Mexico A732A l5O5)777-2211 ft?"Ht$.' Mld-Amerlca
4510
931-2102
An Ent€mdse of the N8v8io Tribe
Lumb'ermens Associatlon
Bellwia Ave-, KaHs ciry, Mo. 64lll (tl6)
ARKANSASA OKLAHOMA

LOUISIANA OUTLOOK

TEADY is the best description in most cases of the business outlook. Most dealers express optimism and hope. With the national election coming up, we expect to see interest rates come down slightly and stabilize until the Presidential election and inauguration. Perhaps nine to ten months of good business?

Do-it-yourself and repair and remodel

markets are expected to account for 6ls/o of the total market. Firms who have refused to diversifypreviously may be forced to take another look. This year's housing starts will probably reach 1.8 million. The day has arrived when older home owrers refuse to tackle new home purchases. The name of the game will be fix up, add on and remodel.

Market prices have stabilized somewhat, particularly wood products. We believe manufacturers leamed a lesson

KENTUCKY REPORT WILLIAM THOMPSON executlve vlce precldent

OUSING construction is booming despite a drop in new home sales, largely because of changes in home financing.

Higher priced houses are selling much faster than the average. This was demonstrated very clearly at the home showings in Louisville several weeks ago. It has been that way in Lexington for some time and Bowling Green, the other town in Kentucky that is having good sales, is rolling along as fast if not faster.

Experts say several good reasons have kept building up: s &l's have poured money into construction loans; states and localities have made available a record amount of mortgage money raised from tax exempt, mortgage backed bonds; and builders have started subsidizing low mortgage rates again.

However construction is bound to slow down ifsales keep falling. Ifnot, builders will be stuck with a lot of unsold houses. Even this situation will not be as bad as many expect.

We all expect it, a housing construction slowdown by now. Since June the rates on fixed rate mortgages have risen 2 percentage points, to a high of 133/cs/0. That has hurt new home sales and in some areas it has been worse than in others. As an example, U.S. Corp., the nation's largest builder,says thatAugust orders fell

3790 from a year earlier. "The buyers just aren't coming out to the subdivisions" they say.

There is no doubt that new developments in housing finance seem to be the most important factor in keeping construction going and sales from dropping even further. As an example, the thrifts increased their lending by 16690 in the first seven months of this year to $19.4 billion from $7.3 billion a year ago. S& I's now make about l/3 of all construction loans, whereas last year they were making less than 2090.

during the price escalation of April-June 1983. Dealers should encourage all suppliers to hold the line to a reasonable level and not price themselves and their customers out of the market. Prospective home buyers are and will be scarce in the future. Commercial and industrial sales are up slightly. However, the uncertainty and lack of oil production continues to effect the entire chain of distribution. "Hang in there!"

National convention was the best yet. Business sessions, and social events were well attended by some 500 delegates. We were pleased to hear the South will ehjoy a 3190 increase in population during the next few years.

Ralph Norman won the golf tournament and Doug Ashy frnished his job as chairman of the board. I was relieved as chairman of the legislative affairs committee. The overall tone of the convention was one of optimism.

S& I'sby the way have encouraged building by making more adjustable rate mortgages. As fixed rates rose, adjustable rates were often held to I I 9o to ll%t/0.

We cannot discuss money without giving credit to the use of tax exempt mortgage backed issues. These bonds have been used to finance low cost mortgages, generally with interest rates lower than I I 90. In August alone, 22 states issued close to $2 billion of such issues, nearly % of the total isued in all of 1982.

But the hint of glut is also likely to slow the construction boom. Economists predict that housing starts will fall bythe end ofthe year, although by l59o to 2090 instead of as much at 3090. There is no doubt that this could slow the economic recovery. The growth in residential construction was the single biggest force behind the robust 9.790 second quarter growth in gross national products. Economists estimate housing accounted for l/4 to l/3 ofthat increase.

THE d-i-y trade kepr many dealers I in the black during the last recession. So if there is any thought of dropping off on d-i-y in favor of cnntractor return, all authorities recommend that you make every effort to increase the d-i-y aspect as you plan to increase the contractor trade.

Every trade joumal and economic report indicates the d-i-y trade wilt be stronger than ever in the coming two or three years. We should anticipate that area of grofih and be certain we are getting our share of that market.

Surveys show that the fall of the year is the best time for d-i-y projects, especially for insulation and storm windows and doors. Continue to advertise for the d-i-y dollar.

December,1983
Loulslana Bullding Matertal Dealers Assoclafion P.O. Bor ltia7, Brion R@ge, Ir. 70t9i (SO4l 92749t7 Kentucky Lumber and Bulldlng Material f,!'ealers ASSOClatlOn P.O. Box 655, lebanon, Ky.40083 (SO2l 6g2-at6r
27
Tennessee Butldlng Materlal Associatlon P.O, Box 'l{)328, Narhvtlte, fn. 3720f (6f b) $$.765{
TENNESSEE NEWS STAN
It'.1**T$Bl*S,:if.,l.n
OWENS executlve vlce precldent

PERS NALS

Steve I)ean, Dean Lumber Co., Gilmer, Tx., is the new pres. of the Texas Forestry Association.

Phyllis Walker has been promoted to assistant hardware buyer at Scotty's, Winter Haven, Fl.

Linda Priddy is now at Curt Bean Lumber Co., Amity, Ar., selling treated lumber nationally, according to Tim Bean.

John Shirley, Ron Toney and Tom Bryant are new regional field service mgrs. for Heil-Quaker Corp., Nashville, Tn.

Ken Dague has been promoted to branch mgr.at the Weyerhaeuser Co.'s building products customer service center, Sweetwater, Tx., according to Tom Turner human resources mgr., Hot Springs, Ar. Other CSC branch mgr. promotions include Emory Gleason, Orlando, Fl., John Weyerhaeuser, Oklahoma City, Ok.; Jack Gilbert, Miami, Fl.; Robert Frawley, Tuscumbia, Al.; Ed Janis, San Antonio. Tx.

Dale Sprinkle has joined McCoy Lumber Co., Greensboro, N.C., as a buyer, according to E. C. "Bucky" McCoy, pres.

William R. Smith has joined Homecrafters Centers Inc., Birmingham, Al., as senior v.p. merchandising, according to Georges A. Hanzi, pres. and c.e.o.

Glenn Agee, pres., Dallas/Fort Worth Metroplex Hoo-Hoo Club, has been appointed a deputy of the Supreme 9 by Joe Breeden.

Dave Crouse an-d John F. Gullett have have joined Temple-Eastex Inc., Houston, Tx., in the rigid foam operation.

David B. Harrison, v.p., Osmose Wood Preserving Co. of America, has retired after 30 years with the company.

Ronald Xazimer is now representing The Panel Clip Co. in KeltuckY.

Larry E. Cuthbertson is the new controller at Genuine Hardware, Greensboro, N.C., succeeding'Dewey L. Whicker who has retired. Dale B. Byrd has been named anew merchandise mgr.

Patrick S. Maloney is mgr. of the new Handy Dan's in Houston, Tx'

Kent Fortner is replacing Michael Morton who has resigned as chief financial officer of the Home Centers of America, San Antonio, Tx.

J. Bred Craig is now with the Construction Products Div. of Reynolds Metals Co., as director of sales and marketing, architectural products, based in Atlanta, Ga.

Pierce Snider has joined Southeastern Metals Mfg. Co., Inc., Jacksonville, Fl., as operations mgr., according to Nadine Gramling, pres.

Pat Dooley is now regio.nal sales mgr. for the Benchmark Doors Div., General Products Co., Inc., Fredericksburg, Va.

Gary B. Tyler has been named pres. and c.o.o., of Wholesale Building Products, Nashville, Tn.

LeRoy H. Benton, Jr., pres., Overseas Hardwoods Co., Mobile, A1., is speaking at the Malaysian timber markaing conference in Kuala Lumpur, Malaysia, this month.

Frank Fertitta is the mgr. of the new San Antonio, Tx., office recently opened by American International Forest Products.

Lcslie Mdonico Sr., a full time employee at Roberts Lumber Co., Tampa, Fl., at age 71, has received honorable mention as an "Outstanding Older Worker of the Year."

Charles H. Thomas, v.p., Shuqualak Lumber Co., Shuqualak, Ms., has been elected 2nd v.p. of the Southeastern Lumber Manufacturer's Association.

W.G. "Bill" Maroney has come out of retirement to join Pavco Industries, Inc., Pascagoula, Ms., and Campbell Forest Products lnc., Maypearl, Tx., as a manufacturer's rep at large, based in Victoria, Tx.

Charles D. Sulliven has been appointed director, advertising and sales promotion, Homecraft Corp., South Hill, Va., according to William L. Brown, v.p., sales and marketing.

L. Dde Boozer, Boozer Lumber Co., Columbia, S.C.; Jim Crllehen, Callahan-Koon, lnc., Spindale, N.C. and Don Jenkins, Brevard Lumber Co., Brevard, N.C., have been named Lumbermen of the Year by the Indiana Lumbermens Insurance Co.

Gmrye Bryn is now mgr. of the intemational div. of Wood Mosaic, Louisville, Ky.

Ivy Jordan, Monroe, La., a past pres. of the Louisiana Building Material Dealers Association, is recovering after pacemaker implant surgery.

Buildlng Prodrcts Digest

Williem kg8 is now gen. mgr. of PlyWorld Corp.'s branch,Orlando, Fl. Deve Shrrp is now plywood plant supt. at the Weyerhaeuser mill, Mountain Pine, Ar. Bob Revell is product mgr. for the mid-South sawmills.

Ben Oglctrtc III is now a sales rep at Ogletree Lumber Sales, in Livingston, Tx.

Chrrles Mercy has joined Paulsel Lumber Co., Ft. Worth, Tx., as assistant sales mgr.

Williem F. Fondrtu Jr., pres., Orgill Bros. & Co., Memphis, Tn., has been named to the National Wholesale Hardware Association executive committee.

Sendn Fishcr is new to the Allied Building Stores, Inc's. buying staff in Monroe, La.

John C-ello*ry is pres. of the norly formed Beaumont Plywood Corp., Beaumont, Ms.; NcC McOood is phnt mgr. and Mike Erstertng, saks mgr.

Don Whitc is new in softwood sales at McCoy Lumber Co., Greensboro, N.C., aaording to E C. "Brdr5f" Mc€oy, prcs.

Drvll Hrrdy is neur at Summit Fores Products, Augusa, C-a., as a tradfr.

Itill Autry is now mgr. at the 84 Lumber Co. store, I-akeland, Fl.

Bernie Hele, lfike Blendrctt, Ron Ncdry and Eed TYillirrns are representing Wood Mosaic in Tx., I-a., Ms., Ca-, Fl. and Ar.

Crrl W. Nagle, exec v.p. of the Nafional Sash & Door Jobbers Assn., Park Ridge, Il., will retire at the end of the year after 30 years in the industry; Roben T. O'Keefe, associate director, will succeed him.

Perr!' O'Dontist is adminisering the dental health program for Hrlgh Mungus and Freddy Fungus at Mungus-Fungus Forest Products, Climax, Nv.

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, i f easier, call (7 I 4) 549-8393. There is, of course, no charge.

28

SFPA on Canadian lmports

Officers of the Southern Forest Products Association plan to meet with the Southern Lumber Manufacturers Association officers in the forum of the Southern Lumber Coalition to develop a legal plan of action to fight the growing volume of Canadian lumber imports as a result of action taken at the association's annual meeting at The Homestead, Hot Springs, Va.

A proposal for specific action and appropriate funding will be returned to the executive committee. In other action at the Oct. 22-26 session the development of a five year marketing plan was approved.

Speakers included political columnist David Broder and John B. Crowell Jr., assistant secretary of agriculture for natural resources and environment.

James Bibler, Bibler Lumber, Russellville, Ar., was named president. William I. Morrow, International Paper Co., Dallas, Tx., is

succeeding Harry Williams as chairman of the board. Jack Stevens, Kirby Forest Industries, Houston, Tx., was elected lst v.p.; Dwight Harrigan, Harrigan Lumber Co., Monroeville, Al., v.p.-treas. William R. Ganser Jr. and L. J. Landry remain executive v.p. and secretary, respectively.

New district directors are J.

Greeley McGowin II, district l; John C. Nichols, district 3; G. Robin Swift Jr., district 5; John Shealy, district 7; J. C. Dellinger, district 9; Ronald Paul, district ll. New directors at large are Carl Jessup, Jim Martin, Harold Maxwell, Tom O'Melia, Joseph Singleton, Mike Miles, Bartlett Rainey and Loren H. Lamb.

HAMPTON LUMBER SALES

WE DO A COMMON THING UNCOMMONLYWELL

n Specialists in framing and cuttings-all species.

Backed by company timberlands and sawmills, remanufacturing and custom milling.

Outside sales contracts exceed 300 MBF annually.

Technical expertise and f inancial ability to buy f rom all sources.

Size fosters f lexibility and service. Time tested track record.

RECIPIEI{TS of the 1983 "Most Valuable Performer" award selected from Chamoion International's southern region sales areas include: (shndlng loft lo dght) Steve Fondots, Central Gulf; Carl Jones, Lake City. (Ssatod lllt to rlghl) Carol owens, Georgia; Frank Hyatt, North Carolina. Selections are based on product, market and customer knowledge, leadership, enlhusiasm, teamwork and communications skills.

OUALITY

Manufacturers

December,1983
Coming ncrt month . . Southcrn Pine Spcclel Issue
29
HAMPTON INDUSTRIAL HAMPTON OVERSEAS
HAMPTON VENEER SALES
n n n n n (503) 297-7691 TWX 36-0355 9400 S.W. Barnes, Portland, Or. 97225
REDWOOD
lrom the lomst to the lence P.O. Box 248 Arcata, Ca.95521 (707\ 822-1779
& Bob lrltt
of fence boards; posts and rails; decking; specialty items. Our sawmill and re-man facilities orovide us with versatility in meeting your customer's needs.
Rucs

NEW PR DUCTS and

selected soles oids

Lock Without Keys

A new rim lock from Trading Co. requires

Shower Power

The Swan Corp. has introduced a selection of free standing shower cabinets constructed of fiberglass, aluminum or plastic.

Units feature a rounded corner design, two soap dishes, a towel bar and a pebble design non-skid floor.

Well Organized Chef

H & P Mayer Corp. is distributing Pierre the chef. Standing 18" high, it comes in a gift box with four kitchen implements.

pickproof with easy to operate cam action.

Made of powdered metal and stamped steel, the lock comes in five finishes.

Designer Faucets

Top Brass faucet combinations feature a washerless % turn nonrising ceramic disc valve for fluid

Cabinets come with shower curtain, self caulking drain, plumbing hardware and installation instructions. A base extension kit allows for installation without direct attachment to an in-floor drain. Glass or plastic doors are also available.

Hardwood Luggage Rack

R. R. Scheibe luggage racks are made of hardwood with woodgrain

FREE READER SERVICE

For more information on New Products write Building Products Drgest, 4500 Campus Dr.. Suite 480, Newport Beach. Ca. 92660.

Please mention issue date and page number so we can process your reeuest faster! Manv thanksl

flow and positive handle alignment.

Harden Industries produces the faucets in solid brass, electrostatically coated with a sheath of polish-free Epoxy-Glass fi nish. They are available in black and brass and black and chrome.

and solid finishes of walnut, pine, ebony, mahogany, red, green, yellow and blue. Suggested retail price is $35 to $40.

30 !:i.LLii:rlil
Building Products Digesl
Nama and is
liiiiiiillttiiiiiiilill'fi liri::i:iriiiiiltiiitrii:iii,i,i.i.--t:,ii
no keys

New Openings

Maywood Inc. has announced improvements in its Four Season patio entry to provide increased energy efficiency, security and durability.

Each unit features Foamgard door sealing to protect against air infiltration. A triple-sealed door bottom by Schlegel and %" double paned insulated glass provide additional insulation. The air infiltration investigation rating is .027 CFM/sq. ft.

The system has a2%" backset and 2%" bore to accommodate standard hardware. Ponderosa pine with a structural mullion provides structural integrity and handing versatility. The fiberglass mesh screen is held in place by a special extruded spline and has adjustable nylon rollers.

The panel units are effective replacements for old sliding doors in remodeling projects.

Jiffy Fireplace

Preway's new circulating built-in fireplace, model no. DW36, has been designed4l%" wide and2lVz" deep to allow installation within a standard 23' by 48" chase, eliminating the need for additional framing materials and enabling the use of standard 4' by 8' sheets of paneling for finishing.

The firebox opening is 36 " in -width. The low-profile design allows

for chimney offset and return below a standard 8' ceiling. The fireplace has a built-in ash guard, provisions for gas hook-up, a fine mesh spark screen and complete foil-backed insulation sealed from the air circulating path.

The fireplace is UL approved and model DW36MH is UL approved for mobile home installation with the use of an outside air kit.

Plugging Along

Arco Plug Cutters are now available in sizes for use with No. 6, 8, l0 and 12 woodscrews.

PickA Lock

Kwikset Division of Emhart Industries, Inc. has developed an adjustable deadlatch which can be adjusted to fit 2%" and 23A" backsets as well as doors that require either a round or rectangular latch face.

The deadlatch, which consumers can adjust to the desired configuration, is available as an option.

Designed to produce wooden plugs to fill counterbored holes, the cutters are packaged on 2-color hang-up blister cards.

Aerodynamic Turbine

A low profile aerodynamically designed wind turbine for new construction and do-it-yourself home applications is available from Leslie-Locke.

The vane design improves air flow, sheds water readily, improves turbine RPM at slow wind speeds and results in a 4890 stronger vane.

Standard, internally-braced and externally-braced models are available in galvanized, aluminum or painted brown finishes.

Other features include low-friction, self-centering bearings which reduce noise and a high-speed limiting device to retard head speed in high winds.

December,1983
31
tp.{ .tr#r !s I. --I U n ,..% \= --'9-yi

Plumbing Tool Kit

Gen.'ral llarciuarc \lanuluerLrr iirg Co., lne ha. irrtrodueeci a errrl plete plunrbin-q tot)l krl 1t,r tirr- jt! our\el tcr \.

Incltrcletl arc a prcci:it)n aii\t luhin-! cuttcr \\ ith t()()l-\teel irrticr rr ]tell and t*o triction clinrinarin-r l'lult grrlr)\ c rollcr:. it \ct ()1 :ir tLrbirtr bt'lrJtr. r'l Jtllr'trnl .izr'. utiJ:t Il:Lt ins tool.

Timely Tie Downs

Ratchet Strap i. 1i 1jr' dlru n utili,,ing a patc-ntr'd rncchani'nr that nl()- i iciC. quick \aaurilrg !)l alt\ 1\ pL load to a traile r. lruak !)r rlLrio r'!r\r1. In additiorr 1tr .ceirrrng .113gl.',, aroid damagc rl Lr rin,: dclrr.'rr.:: rrorks as a 1c'rrcc \lfctahcr iin!i rlrl inr ;lant1.. I lrt l ir irlt rtr. * cbbin-c ha: S hrroks at caiit cn.i u ith a patcntccl rlclhtrcl ol tllf clriil! thc- *c-bbrng thrtrugh thc.luilt trr aliorr all lcnctlt' tir hc ari iLr.tc.L

The doLrblc t()(rth iril\\ I n11rr 11i;' lL positr\ c lockin-u aalirrn iin!l .lrr l.r relea\cd to reltlo\L' thc iCn'iirn. \lounting lttrlc: are pror itlcti . I lrr strap r: ar ailable in l0 lrnd I 5 lengths t'ronr SailTc-ch Ini.

Closet Hang Up

32
\\
Buildinq Products Dioest tilll ' l!ll'' *'.*iliisillllllltH st 't l I r.-"" l. qw* {illl :lrriilSC .nll,C \\ llll ( lr,.r': .\'l.l- \ Irllr.kc:. .i r tnr;-.,rlrli.l r.r.l r;i:i,g' 1i1.lt :t:11i. l-,r1 '..r':,. '- r t.: , 'C\Cf\ \lri'.].!i llr'r'.1 I'., .'-1.-. ,.'.... (1 MfrRY'S RIVER TOMBER CO. SPECIFLISTS IN WESTERN RED CEDFR Select Tight Knot Chqnnel Siding I x4 thrq I xl2 Sl SZE Boqrds Rough E Snrfqccd Dimension TROCK OR Rf,It S}IIPMEilT - Sqlcs in Corvqllir, OrcgonFRfiilK CLEt'li'lOilS . LffRRY CLEl.lt{Ot{S - Sqlcr in ilonterqno, WqrhlngtonBOB SltTf,ilEll (206) zhe-5eo7 SFWI'IILLS LOCf,TED 6T: Philomqth, Or. E l'lontesqno, lYn. Sqlcs gffice: 45t 5 tl.E. Elliott Cr. E tlwy. 99W Corvqllis, Oregon 97330 (tO3) 752-0122 , Portlond Linc 223-29t3 /// [' Luv \Cv=
;i'1g.1 :fritrf -,tit tt., : .lt :....

Raincoat for Wood

Textured Coatings of America is introducing Rainstopper with repellency and ultraviolet resistant properties for use on concrete, exposed aggregate panels, brick, adobe, cinder block, split face block and wood.

On wood surfaces, it reportedly minimizes deterioration from moisture and reduces splitting, warping and swelling of wood shingles and shakes. It is said to retard growth of fungus, moss and algae on wood shingle roofs and reduce bleeding of resins from wood.

On cement stucco, according to the manufacturer, the product adds to the life of color coat and painted surfaces as well as minimizing water penetration, retarding deterioration and repelling dirt.

The product has a solvent base and clear water-repellent sealer. It is available in opaque and transparent stain in a variety of colors.

Key Finder

Taglets are compact plastic key tags with one-piece laminating paper-and-mylar labels.

In sets of 12 or 24 with labels in sheets of 9, it is a product of Necksaver Inc.

Cushiony Sawing

Saw Glide is a suede like peel-andstick fabric cushion to be used on power tools to protect the work piece and improve the gliding motion of the tool.

Fitting circular saws, jig saws and routers, it is applied using a pencil, scissors and a razor knife to trim. Portalign Tool Corp. claims the product prevents grooving or scratching on painted surfaces, plexiglass, laminates and fine woods. It is packaged in a full color envelope for standard hanger displays.

Deadbolts and Locks

Squeeze Play is a new tool designed to impress a faceplate form into the edge of a hollow metal door, eliminating cutting the door edge. The faceplate form will accept a standard size deadbolt or cylindrical lock in doors up to 12 gauge steel.

While reportedly providing a factory quality mortise and installation, it is said to help maintain the integrity of the door and cut installation time. It is manufactured by Myril Industries Inc.

Counter Top Display

A new retail merchandising display is free from Kwikset with the purchase of one case of 660 series deadlocks.

When you want to say "welcome" with style, specifo beauty to the last detail. Simpson

International Doors offer unique touches like "continental" style comers instead of ordinary square moulding. And real leaded beveled glass instead of an imitation. For more details, write Simpson Timber Company, 9OO Fourth Avenue, Seatile, wA 98164.

International Doors

December,1983

Flasher System

The Presto Lock fascia and flashing system is described in an 8-p., 4-color brochure from Manville Service Center, 1601 23rd St., Denver, Co. 80217.

Moulding Fashions

A new series of moulding product lines is featured in a free, full-color, 8-p. brochure from DG Shelter Products Moulding and Millwork Division, Marketing Services, P.O. Box 610, Marion, Ya.24354.

Ding-dong Door

A 4-color feature sheet on the Warbler door chime is free from General Electric Company, Wiring Device Department, 225 Service Ave., Warwick, R.L 02886.

Chart The Winners

A new in-store wall chart of door products is free from Benchmark, General Products Co., Inc., P.O. Box 7387, Fredericksburg, Y a. 2?M.

Plumbing Particulars

A new Z-p. brochure of d-i-y plumbing products is available from the Plumb Shop, 27700 Northwestern Hwy., Southfield. Mi. 48034.

Station-to-Station

A catalog describing intercom systems is free from the Tdk-A-Phone Co., 5013 Kedzie Ave., Chicago, ll. Q625.

Looking Up

A wall poster chart on skylights is free from Selector Guide, APC Corp., Box 515, Hawthorne, N.J. 07507.

Hole ln The Wall?

Step-by-step instructions for wallboard application, and wall repairing, patching and texturing are included in an 8-p. booklet from Georgia-Pacific Co.p., Box 1326, Atlanta, Ga. 30301.

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 Products Digest, Many thanks!

New Light On The Subject

A free, 64-p. color catalog of lowvoltage lampholders and state-of-the-art accessories is available from Halo Lighting Dvision, 4O0 Busse Road, Elk Grove Village, Il. 60007.

Keep The Lid on

A l2-p. brochure on silicone sealants is now available from General Electric Co., Silicone Products Division, Marketing Communications Operation, Waterford, N.Y. 12188.

Weather Predictions

"The Snow Almanac," a 28-p. compendium of facts, folklore and history, is free from Jacobsen Consumer Products,Box 7074, Charlotte, N.C. 28217.

Sky Watchers

A free catalog on skylights is available from APC Corp., P.O. Box 515, 50 Utter Ave., Hawthorne, N.J. 07606.

Custom Rolling Stock

Custom rolling doors, grilles, and counter shutters are described in a free, l6-p. catalog from the MoeschlEdwards Co., P.O. Box 588, Covington, Ky. 41012.

Solar Solutions

lnformation on "Passive Solar, The Simple Solution," a slide presentation with script, is available from the Passive Solar Industries Council, 125 S. Royal St., Alexandria, Ya. 22314.

Wood Biters

A free full color brochure describing power tool accessories and modular displays can be had by writing the Parker Manufacturing Co., 149 Washington St., Worcester, Ma. 01613.

Locking Up

For a free brochure on deadbolt locks, write Schlage Lock Co., P.O. Box 332, San Francisco, Ca. 9{l 19.

Panel Rated

For a free copy of the "APA Product Guide: Performance-Rated Panels." write the American Plywood Association, Box l17fi), Tacoma, Wa., 9841l.

Light Application

Cast iron lighting posts are illusrared in a free 4-p. brochure available from Spring City Elearical Manufacturing Co., Spring City, Pa. 19475.

Munchkin Blinds

For a free 2Gp. booklet on mini blinds for windows and room dividers, write to the U.S. Venetian Blind Assn., 355 Lexington Ave., N.Y. 10017.

Less Watts

For a free 4-p. full color lamp brochure, write Osram Sales Corp., Dept. AB, P.O. Box 7062, Newburgh, N.Y. 12250.

Door Power

A lO-p. illustrated brochure on electric door operators (Caralog ^4-210) is free from the Richards-Wilcox Mfg. Co,, 174 Third St., Aurora, Il. 60507.

D-l-Y Upkeep

A 32-p. catalog of maintenanc€ products formulated for the do-it-yourselfer is free from Randustrial Corp., l33ll-NR Union Ave., Cleveland, oh. 4/120.

NEW LITERATURE tJ,?i.!t:#!::iwtl#.1ffi.{.r:'jf..f.{i;,#lil?Ei#,r.ta::;#n#.
34 Building products Digest i !.:.!.;il!.:iF,tt/i..rrii!!.!.i;.irii$;.!t;i!!iti!iitttt:y.,:iii!.!;,.!S.li,Fi:;.ffi..itiiiil!.

Classified Advertising

WELL ESTABLISHED building material yard in Eastern S.C. Founded 1947. Partners retiring. Diversified market agricultural, industrial, d-i-y, contractors. If interested reply to Box 32, c/o Building Products Digest.

SURPLUS building materials and remanufactured lumber. Ideal family operation. Sell inventory and equipment, lease building. Central Florida between Tampa and Orlando. Contact Lawrence Branch Lumber, 960 N. Combee Rd., Lakeland, Fl. 33801, (813) 665-0503.

WE DON'T pay much, but we'll pay cash for closeouts, odd lots, seconds, etc., ofany kind of building materials. Call The Friendly Junkman in JacksonviUe, Fl. (904) 384-0057.

WANTED TO BUY established building supply located Alabama, Georgia, South Carolina, Tennessee, Florida, or Mississippi. Doing volume about 2M + . 20 yar experience operating and owning building supply. (615) '775-3258 or reply Box 33 c/o Building Pro-

60G 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, 45(X) Campus Dr., Suite 4E0, Newport Beach, Ca. 92660. 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.

MARION PRESSURE TREATING CO.

Creosoted fence posts, timbers, barn poles and piling. Truckloads only. Marion Pressure Treating Plant, Rt. 3, Box 40, Marion, La. 71260. (318) 292-451l.

OU'IS|DE salesperson wanted. Wholesale hardwood and softwood lumber. Salary, commission, auto expense, medical, and profit sharing. Will train right applicant. Write Box 34 c/o Buildine Products Disest.

REPRINTS of harduood articles from The Merchant Magazine. Excellent for reference or trarning. Domestic Hardwoods, $10; Southeast Asian Hardwoods. S5: South American Harduoods, $4; all three, $16. Send ;our check today including name and address to Harduood Reprints czo The Merchant Magazine, 4500 Campus Dr., suite 480, Ne*port Beach, Ca. 92660.

Coming next month

Southern Pine Special Issue

December,1983 35 .u\t-r*1s\.-\_ss
CTASSIFIED ADVERTISING Order Blonk Ncmo Addrcr City-Strtc .Zip Hccding COPY PAYMENT MUST ACCOMPANY COPY. ft Asign a bor numbcr and mailmy rcplio daily. TO RUN: -TIMES TILL FORBIDDEN Meil to: 4500 Campus Dr., suite 480, Newport Beach, Ca. 92660 (714) 549€393 I I I I I I I I

FAMOWOOD

is the PROFESSI0NAL'S Att PURP0SE PLASI]C

Boat builders, furniture makers, cabinet makers, etc. have found it the one sure answer to correcting wood defecls. 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-sticks like glue; dries quickly; won't shrink; takes spirit stains, and will not gum up sander. Waterproof and weatherproof when properly applied. ,-.t;*

Available in l6 rnalching wood colors and white. BEVIRLY

Wood Foundation Use Up

Production of foundation treated lumber and plywood used for wood foundations during the first seven months df 1983 increased 5090 and 6990 respectively from the same period last year, according to the American Wood Preservers Bureau.

Total lumber production for foundations from January through July was sufficient to build approximately 6,700 wood foundation homes. July's236 million board feet was the largest single month's total in recorded history for production of lumber treated with waterborne preservatives.

Total AWPB production for the first seven months of 1983 was 1.187 billion board feet of lumber.

36 l]|0 ilil|0 ca]|$ rTi|]| ll|0 Bt0 PR0r[$!
ij*
MANUFACIURING COMPAIIY 9ll8 S. Main Street .Los Angeles, Calif.90003, P.0. Box 73233 M;nut.cturers ol Iamorood. Famoglare, famosolyenl 0rslfrbuloa afd D.al.r lnq![r.s Invrtad
RESIDEilIIAL entry doors will be produced on this f ully automated pro duction line at the Ceco Corp. plant in Milan, Tn. Said to be an industry f irst, the new equipment has tripled the production capacity of the planl which is the largest ol its kind. The new production line was added in order t0 manufacture the Entergy steel entry d00r system. LAS VEGAS, Nv., will hosl the second Winler Nalional Hardware and Home Center Show in February. Exhibilors now number over 600 wilh Dale Boles (left), v.p. and nalional sales mgr. lorthe Mallin Co., Los Angeles, Ca., being honored as the 600th exhibitor by Pat Dolson. show director, and William P. Farrell, execulive director 0f the American Hardware Manufaclurers' Association, show sponsor.

(Continued from page l5) nesses rise and fall in relationshio to the cost of money (interest rates) and the available supply of funds to a housing+onscious public. As we look ahead to 1984 and perhaps 1985, no threat is more frightening to the current financial climate than the plans by the federal government to finance the sizable federal dehcit. That is the Number One concern for all American businesses, but particularly for our industry. Be wary of increased federal borrowing. It could choke our recovery in short order.

The emergence of warehouse retailing has startled all segments of the industry. Several new public companies have carved a sizable share of market in the South during the past year. It is estimated that almost all key retail markets in the country will have one or more of these large units operating by the end of 1984.

This is not to say that conventional retail dealerships and home centers with sound financial planning and aggressive merchandising will not be active participants in the 1984 marketplace. The recession survivors will set a faster pace and compete more tenaciously for a growing building material market. Share-of-market figures will shift some, and the increases will go to the creative companies who have shrewdly laid plans for increased sales and profits.

1984 will be a good year for the aggressive, creative, resourceful retailers and wholesalers who view the post-recession building material marketplace as the opportunity of their corporate lifetime, a chance to move ahead in their respective trading areas.

Plywood Production Climbs

Record produclion of structural panels is anticipated by the American Plywood Association for the next two years.

Output this year will be 20.2 to 20.3 billion sq. ft., according to Peter Koehler, APA chairman and president. This figure is substantially higher than the 19.9 billion record set in 1979 and the 16.4 billion produced last year.

Production for 1984 is predicted to come in just under 22 billion sq. ft. The APA expects panel exports to hit 600 million feet this year. Over 6090 of the 1983 output will be used in non-housing markets.

(214)

843-5538

truss plrtaa, hardrara, plumblng end condull, lharc ia no gaaatcr cofio. don th.n wlih o.dlnary untraatcd lt'i baan grlnlld. t .S. p!t.nl.

GROWING DEMAND

Th. word b g.itlng .round. Arch! taclr, contr.ctora and bulldlng ownan arc Inlldlng mora aad mora on Oricon llic ratard!nl tra!lad

KEEP IT II{ STOCK

Stocking Orico, FRT wood m!l.t

Aaclu& ol il3 low moi3turc piclup, rtoragc problans rnd yard lo!! ara lct3 than with convanllon.l typar ol FRT wod. .8y atocking qullity Epcci.lty producl, you can bclter sarva axlallng cualonera and e!l.6cl Profrotlonll lll.ralure is avril.ble lo !llmulata tala!.

ADD TO YOUR PROFITS

lt'3 bclng promot.d lo your customar! by tulLprga edl In nttlonal erchlleclural, bllldlng.nd component publlcailon!. ilerily 40 aal.l d.v.lophant ropraaantallvaa ara haklng paalanl& tlons to dcalgna?a, aPaclllara, owner3 and olhat Purchaalng inlluancca.

Dr,co, tka r.tlrdlnt t.altad wood hlr fiany tppllcatlona: lruates, 3tuda, blamt, pu.llna, iold!, deckIng, ahaalhlng and olh.r w.!tharpaotcclad plrcar whcra lire ra3l3lrncc ls dallrabla.

For a liat ot .uppll.r. llcans.d lo produca lhls producl, wrlt. lo Koppcr! Complny, Inc.,'1900 Kqppcrs Building, Pllbbu.gh, PA 15219.

December,1983
o'DowD
37
WESTERN INTERNATIONAL FOREST PRODUCTS, Inc. P.O. Box 3070, Portland, Or. 97208 in Oregon (503) 246-5500 (800) 547.5500 Telex 1515218 WESTERN INTERNATIONAT m" Fire Retardant Treated Wood A REMARKABTE PRODUCT, A REMARKABTE PROFIT For qnlity Dricon and Wolman prodwts wlk to the erperts qr DEAN LUMBER COMPANY Dottie Klotz Dan Anderson Elliott Dean Steve Dean P.O. Box 610 . Gilmer. Texas 75644 Teler 735003 ,"*ot"r=o @ SALES FEATURES A rp.cl.lly producl wllh uniqua lalaa tarluraa cohhands !n altracllva pdca. Drrcor! tlra r€lardanl tradad wod hra auch laalurct: Drrcor FRT w@d la th. only lowhyg?osoplc tlrr ralardrnt wood ol lia typa that c.ril.! an FF-S de3lgnatlon from Undarwiltar3 Laboratori.! Inc., tor all apaclca llrtad. lvh.n O.rcor lunbcr and plywood aac In conlacl wlth metal
We have more tfran 30 traderc ready to serve your needs with all sizes, grades and varieties of plynvood, lumber, shakes and shinglos

Hardwood Coverage

On behalf of the Lumbermen's Club Of Memphis, I wanted You to know how much we appreciated the coverage given to our club and its activities in your October issue.

We have had many compliments from our membership, not only on the article pertaining to the club but including the entire issue and your editorial.

Again, please accept our sincere appreciation ior this excellent coverage.

Keeping Them Honest

I am writing about the article "The Truth About Loss Prevention" bY Thomas Dyar in the September issue of Building Products Digest.

As a specialist in loss prevention, I agree with Dyar; however, I think he missed a very important prevention method, i.e. polygraph examination.

A background check will not alwaYs tum up dishonest acts; some employers allow a dishonest employee to resign. An employee may also be dishonest and not have been detected. Drug and alcohol usage along with gambling are motivators for employees to steal, yet an employer may not have detected these problems.

A thorough pre-employment screening by the polygraph will determine if a problem exists in any ofthese areas. Periodic polygraph testing will tend to keep'the

honest, honest and deter the dishonest. Finally in the case of a loss a specific test will readily identify the guilty party and eliminate the innocent from suspicion.

Texas Tale

I read in your magazine about Mungus-Fungus Forest Products but you did not give enough mailing info. Please be kind enough to forward my application for employment to them. They sound just likemy kind of hardworking people.

Will Makeit

Resume

Name: Will E. Makeit

Last Job: Betchacan Lumber Co. Location: 7-ll Easy Street Wiseass, Texas 5550202

Position: Sales

Job Description: Sold left over lumber, damaged plywood, cow manure, outdatd Super Bowl tickets.

Length of Employment: Long as I could without getting caught.

Reason for Leaving: Got caught.

Background: Raised in the industry. From deep East Texas Big Thicket area. My diapers were made of wood chips. I had pine sap in my baby bottle. I can eat sawdust and produce plywood as an end product.

As an industry service, we'd like to share this with potential employers-ed.

Proud Heritage

I enjoyed your article on the Memphis Lumbermen's Club. My great-grandfather, E. E. Taenzer, was one of the original charter members of the club and sen'ed as the first secretary in 1899, later assuming the presidency in 1902. I am proud to be pan of the heritage.

Advertiser's Index

Sr;l"r;,,, /," ^ *l ek & rk r, eo.

Charles Dlck

We're manufacturers of cedar products, K.D. or P.A.D.; selected #3 & better, t2 & better common. We can offer selected stock for #3 common price. Try us!

WP.{ R.Ycrllbl.

TG&V 1tY4E

We can ship mixed cars of Ponderosa pine mouldings, solid and fingerioint. -

We are manufacturers and sell wholesale ONLY

38 ::::i:i:i::li::ii::j':iiiiii:iji::iiii:i:itii;iiaitii::i::ii:itii:iii::i:t:tii:i::t:iiii::::i:::::::i::it:::iii::ir:::i:i:t::::ii:i:i:::i:;:t:i:i:i:: t:::iii:::i:i!::i:i,:::i::::iir:ii:::i::i:t:::i:i;:::t;:i::i::::i:i::::lii::::::iii::::ii:::i::::;::iiil:::iiti:l:::::i::iifi:ii::lj:i
o G, o uJ o a G, o UJ o o G, o ul o
Building Products Digest
American Herdwere Manufrl urers Associstion Covcrll' American Inlernelionrl Forest Producls, Inc.. . 23 Bererly llenufacluring Co. 36 BrittLumberCo...... 29 (-alifornie lrl holesele 36 Cameron Cenf rrl Dislribulion -. 22 CoastdLumb6Co.... lt Cole& Associrtes.JohnT. 35 DesnlumberCo...... 37 Fishman&Affiliat€s.Bill Coycrlll Hrmplon LumberSeles 29 Louisiana-Pacific ..... Coverl MerionPressureTreatingCo. ......... 35 Merlin Foresl lnduslries 7 Marl's River Lumber Co. 32 MGBuildingMaterirls. 19 NrlionalHomeCenlerSho$ 3 Nrvrjo Forct Products lnduslries 26 Performanc.e Corlings lnc. 20-2t Product Srles Co. 4 Roc*lin Forest Producls 5 SimpsonTimberCo.... 33 Sniderlndustric 6 SniderLumberProduclsCo. 3t Southern PineSpecirl lssue CoYerll Western Inlernationel Foresl Producls, Inc.. 37 WesfernTurnings{lSlei]sCo. ......... 24
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Bill Fishmon &,,4ffiliotes

/UARKETING SERVICES. INC.

Fron Marketing Services, a professional corporation

stonEmDB sil,Bs Eq)stEB PROcRil{S

AD\IERITSING & UERCNANDISING

Advertising Evaluation

Advertl8ing Budgeting

Coop A&tinistration

Cmlpany news bulletins

Pronotlona & Eoopla

Ad PreparationPrlnt & Broadcast

SrRASGIES & PROGR,N{ DEVEIOPMN{T

' Financial Modellng

' Geodenographic Modeling

' DerFgraphic Screening

' Uarket Testing

' sales Foreca8tlng

' Tactical Planninq

RESEANCE & SUR\IEYS

' signing Prograns

' Vlsual Itlerchandising

' Private Label Prograns

' 'Packager Selllng

' Product Knowledge Training

' In-Store Excitements

IncentLve Prograns

Sales Training Programa

C1inic & Denonstratlon Prograns Installed Service Prograns Managenent Development Progratns

Consurner Regearch - Focus groups, telephone intervlewlngr p€!- sonal interviewlng, direct nail questionnaires, etc.

Secondarv Reaealch - Search of already published industry govelmrent statistics on the subject matter.

Slte Location - Hlghest and best use real estate feasibility studies and mathetnatlcal rnodels on chain operations and narket =v'ariablee that appeared to generate succesa, e.g., traffl.c cbunts, poEirlation denaity, income levels, etc.

Ccmparatirre AsaessnentE (trade area analysls)

PEITE OB I{RI':tts FOR l()Nts NWONUATIoITT

11650lbeilo

/fftrotedoffces: Detroii

Nl€'r'v brk Dolkts Cl€^€bnd Chicogo

Ploce Son Diego, Colforruo 92'128 PHoNE 619/485-7500

WintenllandunrG & Home Genten $houu Handline$ Gonfenence

February 11-13, 1984 Las Vegas Convention Center, Las Vegas, Nevada

Seminar topics will include:

"Your Store Has a Security Problem" by Charles Miller, President, Loss Prevention Techn iques

"The Look of Today. and Tomonow: In-Store Merchandising and Display" by Greg Hauca, Director, Home Center Institute, and James Gray, General Manager, Master Merchant Store Planning Services, National Retail Hardware Association

"Advertising and Promotion-The Truth is That YOU Pay To Advertise" by Jack Rice, Director of Educational and Dealer Services. National Retail Hardware Association/Home Center nstitute

"Employee Training: The Competitive Edge" by Raymond A. Higgins, Director, Sales Training and Development, Armour-Dial, I nc.

"Trends for 1984 and Beyond: Economics, Politics and Onrell" by Dr. Barry Asmus, Professor of Economics, Boise State University

The most comprehensive single source of hardware/ home center industry products and ideas available anyurhere in the West!

The Winter Hardware & Home Center Show and Hardlines Conference is the biggest do-it-yourself/ hardlines product show in the western United States, gathering onto a single show floor the products and programs of hundreds of the nation's foremost hardlines manufacturers. As the largest event of its kind in the West, it is your best opportunity for convenient, direct access to the information and products you need to maintain your competitive business edge. The Winter Show features a complete retailer/distributor oriented education program of information-packed seminars and major addresses; special expositions showcasing the latest in hardlines industry new product and packaging trends; and an all-new "Retail Concepts Center" with state-of-the-art ideas in hardware, home center, and lumber/building materials store merchandising display.

Keynote addresses will be provided by nationallyprominent speakers drawn from the home center and hardware distribution industry including Terence Smith, President, California Hardware Company, and Ray Cooney, President, Scotty's, Inc.

"Emerging Trends in Hardware/Home Center Retailing" by Bradley T. Farnsworth, Research Director, National Retail Hardware Association/Home Center I nstitute

The educational program was developed by the Califomia Pacific Southwest Hardware Association with the guidance of the American Hardware Manufacturers Association. The speakers selected for this maior educational offering are the recognized experts in their respective fields and bring with them extensive knowledge of the hardware/home center industry developed through years of industry participation on the national level.

Hardlines Conlerence'&4 is sponsored and conducted by the American Hardware Manufacturers Association with the participation and support ol the Calilornia Pacilic Southwest Hardware Association and the Southem Wholesale Hardware Association

You're Invited to the Second Annual
Pack a Hertz for the Winter Show Special Discount Rates for Using AHMA lD Number 92970 Call toll-f ree 80O -654 -2240

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