Distributors optimistic

By Frank E. O'Dowd Executive Vice President National Building Material Distributors Association

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-

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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.