Building Products Digest - December 1985

Do thev make vou feel disconnected?

...'Tm sure it'll come in sometime..."

..."The one that took gour coll is kind of new at it and utell..."

..."Could gou giue us anothq chance at that ordq? The third time's a charmu, they sag..."

..."lt still im't ight?..."

..."1jttst don't lotow whqe that ordq could be...oh, it's.ight hue in front of me,."

Let us be your direct assistance.

Whafs gour excuse? Write to u at Powell Lumber Company, care of Tommy Joyce, P.O. Drawer P, Lake Charles, LA 70601. We'll publish the best ones in your next issue.

"I'll take care of iL"

At Powell Lumber we ansrryer the call with the quality and service our customen expect and deserve.

Lumber Comprry

Builden of excellence for the South.

Hon Office/Itlrcc| thb

L:te Charlcs, LA (3tt),f33-6355

LA WATS t(x)-542-7135

us wATs t0-551-71cl

Trt d4Pbt

Elco Forcst Producrs

Opelousas, LA

LA WATS gD-542-715

us wATs to-551-7lql

Ilhlbrdor Gcdcn/I)lrci Sdg

san Antonio, Tx (512) ffi-z'fo

TX WATS tm-zD-5115

Tylcr, TX (zlqCn-9211

TX WATS tm{t2-t2t0

us wATs w-sn-u2

Chrlottc, NC (?0a) 5tt-J550

NC WATS gD-f3t-5551

t s wAts tm{3t-55t0

Latc Charles, LA (3tt).83-6:tt5

LA WATS

E00-542-7136

us wATs 800-551-7192

IB||UI PRTSSURT IRTIIHI TO||II.

You demand quality. You get it with Osmose' Wood Products from MG Building Materials. Ask us about the highest quality, most durable, clean and safe wood products on today's market.

From our convenient San Antonio location, we can ship Osmose Wood Products all over Texas. On short notice, we'll select your order from our large inventory

and have it rolling ro you... quickly and efficiently.

TAJOR I{EWS AND FEATURES

BusinessForecastSpeciallssue

WarehouseRetailers Must SharpenUp Act ToWin

Creativity Can Capture A Good Share Of Market

New WoodProducts Markets Need To Be Developed

Classic Mixed Bag For Lumber Retailers In 1986

Hardline Sales Expected To Prosper In New Year

Long Term Looks Good For Hard Work, Commitment

D-l-Y Retailing Industry Enters A Strategic Era

Building Material Wholesalers Expect Good Year

Home Centers Must Upgrade Their Selling Skills

Upbeat Attitude To Gonquer Down-Tick Year Ahead

SFPAEmphasizes Quality At 71st Annual Meeting

Recession Possibility Still Stalking The South National Hardwood Association Holds88thAnnual

Pub[shcr David Cutler

Editor Juanita Lowet

Asistrnt Edltor David Koenig

Contrlbuting Edton

Dwight Curran o Gage McKinncy

Art Dirrcror Martha Emcry

Strfl Ar&[ Carole Shinn

Circulrtion Dorothea Crecgan

Suilaing Prducts Digest is publish€d monthly at 4500 Campus Dr., Suite 480, Newport Beach, Ca.92ffi, phone (714) 852-1990 by Cutler Publishing, Inc. Advertising rates upon request.

ADVERTISIING OTTICES

FROM TEXAS. LOUISIANA. MISSISSIPPI. VlRGlNlA. rd TENNESSEE conrrt DlvH Cutlcr. PhorE (?14) t52-19S.

TNOM VIRGIIIIA, NOflTH CANOUNA, SOUTIf CAROLINA, GEORGIA, FIIru DA AI\D N-ABA}|A: Contd Crl v-. Phme (2ll) 472-31t3 or Ctt4) t52-19$.

FROM WASHINGTON STATf,, ORf,IGON md IDAHO: contacr Croh Hoh. Phonc (26)}{lS80.

sLrBscruPTtoNs

Chrngc of Addrcsr-Send subscrip tion orders and address changes o Circulation Dept., Building Prodrrts Digest, 4500 Campus Dr., suite 4fl), Newport Beach, C.a- 92650. Indude address label from reccnt issre if possible, plus new address and ap code.

Subscription Rrlc: U.S.: $20one year; $36+wo yean; S5Gthree years. Foreign: one year payable in advance in U.S. funds-Canada or Mexico: ur-W; surface-$37; South America: air-$60; surfacc-$39; Asia: air-S?O; surface-$39; Europe: air-$90; surface-$39. Single copies $2; back copies $3 plus shipping & handling.

BUILDING PRODUCTS DIGEST is an independently-ownd publication for the rctoil, wholsle and distribution leveb oJ the lumber and building supply markets in 13 bwhern slot6.

markets in 13 Southern

Homebuilding Strong In'86

Supported by stable interest rates, a rise in 1986 residential building will sustain next year's construction market at a record level, says George A. Christie, vice president and chief economist of McGraw-Hill Information Systems Co.

He forecasts 1986 construction contracting will rise 2Vo to reach a record $226.1 billion. He points out that "Next year's favorable interest rate prospects should give an edge to homebuilding over commercial and industrial construction which will be handicapped by a sluggish economy and the probability of tax reform."

"Since 1983, housing starts have settled into a remarkably steady groove at close to l.75 million units per year," Christie indicated. "And there's a very good chance that this three-year stretch of strong housing activity will go to four in 1986." He said that the forces that dominated the housing market during the first half of the 1980svolatile interest rates and complex tax sheltersare receding. In their wake the basic, underlying determinants of the demand for shelter, such as demographics, public programs, affordability and regionality,

will begin to reassert their influence.

"Home ownership in 1985 is more affordable than at any time since this decade began. With interest rates steady or lower in 1986, it can be expected that new housing will be slightly more affordable next y€ff," Christie pointed out. "As this trend continues, the housing industry can expect to realize a larger proportion of the potential implied by the market's demographics." Christie expects that total residential building will top $l12.6 billion in 1986, up 790 over this year's anticipated level.

Regionally, the west will post the strongest gain in contracting value next year, rising 490. In the south, construction will grow a modest l9o, with the northeast and north central states showing 2 and 3Vo gains, respectively.

Dealer Video On Service

A trio of dealers discusses service to the customer, how it helps move merchandise and how it can be cost effective for the dealer, in a videotape presentation filmed for U.S. Plywood's annual fall dealer meetings.

Francis Mercante, Marco Building Center, Hammond, La., Terry Ono,

Houston Lumber Co., Las Vegas, Nv., and Ed Seyrnour, Forest City Home Centers, Cleveland, Oh., are panelists. John Hambrick, NBC:TV newscaster, is the moderator.

At the conclusion of the film Jack Armstrong, executive vice president of U.S. Plywood Corp. (formerly Champion Building Products) explains how the new comp€uly was created to continue the business of Champion Building Products after the acquisition of St. Regis by Champion International.

Loss Prevention Conference

The Home Center Institute will hold its fourth annual Loss Prevention Conference Feb. 17-20 at the Hyatt Regency Hotel, Fort Worth, Tx.

Speakers will include attorney James Cleary Jr. on "Legal Aspects of Handling Shoplifting Cases" and William Perry on "Controlling Your Bottom Line."

Workshop roundtables will cover personal computers within loss prevention, safety, setting up a shrink control program, document examination and other topics.

EDITORIAL I

DA!'ID CUTLER publisher

"The enormous speed of 15 miles per hout"

I N rHtS annual business forecast special issue I we present a number of forecasts from industry experts to help you in your planning for 1986. Many deal with the changes likely in the near future. The implicit challenge is for the reader to cope with and understand what new developments mean to the individual and the world in which he works and lives.

Recently we ran across a letter that puts into perspective this business of coping with change. It was written almost 157 years ago by then governor of New York Martin Van Buren, still eight years away from being president of the United States. Addressed to President Andrew Jackson, it is dated January 31,1829.

TO: President Jackon

January 31, 1829

The canal system of this counrry b being threatened by the spread of a new form of transportalion known as railroads. The federal government musl preserve the conab for the following reasotts:

One. If conal boats are supplonted by railroads, serious unemployment will result. Coptains, cooks, drivers, host' lerc, repairmen, and lock tenders will be left wilhout means of livelihood, not to menlion the numerous larmers now employed in growing hay for horses.

Two. Bost builden would suffer, and towline ship and harness moken would fu leJt datitute.

Three. Canal boats are absolutely wntiol to the delense of the United Stota. In lhe event of rhe exgtd trouble with England, the Erie Canal would fu the only means by which we could ever move the supplia so vilal to waging modern wor.

As you moy well know, Mr. Praident, railrud canioges are pulled ar the enormous s@ of l5 mila pr hour by engines which, in addition to endangering lde and limb of possengen, roor and snor! Iheir way through the countryside, vttingJire to crops, raring the livator'k and lrightening women and children. The Almighty certainly never intended thot people should trovel at such brukntk speed.

Martin Von Buren

Covemor of New York

What Governor Van Buren said wasn't factually incorrect, yet it so obviously demonstrates (from this vantage point) that he had no understanding of the dramatic revolution the rafuoads would produce in the sleepy society of the early l80s.

We wonder if computers andtheir ilk won't produce even more dramatic revolutions in our world. Will we be ready or will we be left behind, standing there with the tow line in hand, wondering what happened.

Consumer sales will remain sluggish

By Frank W. Denny President, Builders Square, Inc.

HE YEAR 1986 should be ex-

factors of slow gowth with flat and, early o[, lower interest rates are examples of the contradictions currently being noted in the economy. Consumer sales, as

evidenced by the record 3.390 ftober, 1985, decline, will continue their sluggish pattern as real income growth slows. Recent family income gowth was primarily derived from an additional wage carrier entering the work force, rather than higher individual earnings. As the employment picture flattens, household incomes tend not to expand sufficiently to absorb the presence of new retail outlets. Therefore expansion must primarilY be achieved at the expense of existing market participants.

The primary industry economic factors facing lumber and building material retailers next year would appear to be flat housing starts for the contractor supply segment and the beglnning of the maturation cycle for the home improvement retailing segment. As a sub-segment, home improvement retailing would appear to be accelerating toward maturity ils Builders Square, Home Club, Mr. How, Home Depot and Home Quarters roll out their aggressive expansion plans. For them evidence of this rush

to maturity is the early on entry and exit of Bowater and Homecrafter warehouses.

In this environment, productivity and cost controls, both difficult achievements in a fast growth mode, become even more critical to those companies which will become national concerns in the next several years.

Productivity in our industry is heavily skewed to inventory productivity and earn and turn management skills are magnified ina tight economy. Productivity increases are most readily achieved via improved systems which reduce the cost of processing merchandise and paperwork and provide quantified repors of relative productivity rates for small segments of the inventory. In other words, today's merchant must be concerned with the productivity of hammers as opposed to prior concerns of the hardware department.

The manufacturing side of the industry must be prodded to incorporate features such as LJPC coding on the merchandise to further facili-

Sfory at a Glance

Economic lactors are contradiclory...household incomes cannot support new retail outlets...aggressive expansions will push out some retailers... eamings growth will come from better management ol inventory and employees.

tate improved productivity. With the information explosion in our industry, manufacturers will be chocen on the basis of on time shipping and order fill rates as oppoced to price and in-store service.

Employee productivity is the other obvious criticd factor. Approximately 7O9o of most op€rating ov€rheads is payroll related. The successful operator wil managp ttrcse payroll dollars to optimize crxitomer service while providing satisfactory rcurns of capital. With maturation upon us, the successful mid-to-long t€rm op€rator will benefit from a hase of loyal ctstomers which price alone cannot pro vide.

Sales per errployee and gross margin dollar per employc meailriF ments should become as familiar to the successful operator as prwious standards such as sales per square foot and average dollar transaction.

On the other hand, manufacturers must also move toward maximizlqg test standards to bocome or remain a low cost producer in today's world market.

In closing, I feel the home improve. ment segment will continue to eirpand at an approximate l09c annual rate for the next severd years. Rcailing in general will not erperienoe real growth of any significant size and I therefore feel that raail earnings in general will be flat. The indiyidual market shares of 1985 do not @mpare with those of l9E0 and they will continue to shift in 1985.

Earnings growth must therefore come from better management of inventory and employees, not increased sales per unit.

Industry must T,:,gj*tough challenges

President, Lock Division Schlage Lock Company

I r rfes BEEN rather self-gratify- I ing to see my prediction last December of a strong, but slow growing construction market characterize this

year's activities. Despite the dashing of overly op- timistic expec-tations. 1985 has been a year of record construction activitycontinuing an upward spiral that has lasted three years.

Now, with three years of expansion and recovery behind us, it becomes crucial to determine just how vulnerable the outlook for 1986 really is. Despite lower interest rates and a rising GNP, the second half of 1985 has seen a slowing in the pace of housing starts and the appearance of saturated markets. The business climate is very. different from last year with both the

consumer and corporate sector taking on increased debt, the continued high value of the dollar triggering record trade deficits, and the overhanging federal deficit discouraging any further declines in interest rates.

Next year will be characterized by a continuation ofthese "drags" on the economy. While stable interest rates over the past year have provided economic support, they are still too high to provide the much needed economic stimulus to trigger more

Story at a Glance

Overextended, unbalanced market...anemic growth pros. pects...1.7 million housing starts...more single family homes than multiples...renova. tion will be growth sector.

rapid economic growth. Thus, as we embark on 1986, we enter a marketplace overextended, unbalanced, and facing anemic growth prospects. In response, the building industry will need to adapt to growth prospects facing a mature construction market with changing technological needs.

Because of the stable inflation, interest rate picture and a slowing economy, we can expect a further decline in long term interest rates in the first half of 1986. As a result, housing starts will continue to be an important segment in the 1986 picture with annualized rates strongest in the first quarter gently sloping downward as the year draws to a close. Housing starts will repeat their 1.7 million level of 1985 but we will see a change in the ratio of single to multi-family units. Single family housing starts will increase 790 while multi-family starts will decline by l09o due to anticipated

(Please turn to page 27)

Healthier atmosphere for building products

By Ronald P. Hogan Senior Vice President. Distribution Div. Georgia-Pacifi c Corporat ion

!.rr. l.rE seconq narr or rne 6us

I we foresee a healthier atmosphere for planning building products manufacturing and distribution opera-

tions. Although no single construction segment will probably at- tain record heights, the combination of all markets will pro- vide fertile grounds for expanding sales and profitability.

As a result of low and less cyclical interest rates, we believe housing starts will remain relatively strong with less fluctuation between the high and low points. Housing should average between 1.4 to 1.8 million starts between now and 1990. For 1986, housing starts should range between 1.6 to 1.7 million starts.

Continued strength in residential repair and alterations will provide the

cushion against sales and profit declines in the off years for housing and will be the stimulus for significantly better sales and profits in the strong building years.

Although in the near future business may be weaker in the commercial and industrial areas, these markets provide added value and make us less vulnerable to swings in housing. We will continue to develop these kinds of alternatives for generating higher return to stockholders.

Along with pursuing sales into all

Story at a Glance

Fertile market for sales and protit ...less fluctuation in housing... 1.6 to 1.7 million starts...plants must modemize.

areas of the construction market, modernization and expansion of plants are necessities for keeping price and quality competitive in today's aggressive marketplace. The recent opening of two Georgia-Pacific state-ofthe-art OSB mills in Grenada, Ms., and Skippers, Va., is ample testimony to the fact that we believe in this type of progress.

A possible negative impact on business that we foresee next year is the effect of pending tax legislation. However, because of our market diversity and the strong position we have with those customers serving the d-i-y market, we believe a tax revision affecting housing would have less impact on us than others in our industry.

By developing superior distribution into all markets, not just those reliant upon housing starts, and by constant modernization of our plants and facilities to keep up with the latest technology, we think the chances are excellent for generating sales and profit growth in the '80s.

It's time for creativity

By Rsy H. Cooney Vice Chairman Scotty's, Inc.

lN uosr cRowINc industries

I changes are more common than static conditions, and so it has been in the home center and building supply

business. Product offerings change, new competition emerges, others are acquired, some fade away by default, population shifts spark new competitors heretofore not visible, and the economic cycle causes shifts in emphasis in the percentages of d-i-y and building contractor business.

These kinds of changes have taken place every year since the home center concept came into existence back in the early'70s.

As 1985 grows to a close, it is interesting to look back on recent developments in the home center industry and assess what has taken place. The warehouse retailing concept has gained momentum. In selected markets, namely, Florida, Texas, California and Virginia, competitors have popped up on every corner, making more and more difficult the opportunity to realize a satisfactory return on investment and decreasing the likelihood of survival.

I am apprehensive about the future of some very aggressive entries into the new warehouse retailing concept. I am concerned that well intentioned people have invested in a follow-theleader type program which could spell failure.

While I wish for them the best, but am fearful of their ultimate fate, I feel the same resources applied more selectively could have assured success. Success that may have occurred more slowly, built upon a firm foundation that would stand the stress ofthe peaks and valleys of the economic cycles.

I believe our urgent quest for immediate success measured in terms of quick profits often overshadows our expertise and persuades us into irrational decisions that cannot stand the stress of persistent competition in an over-stored environment.

There is plenty of room for well financed, good operators in almost every section of the country, but we

must first come to grips with ourselves. We must stop being copiers and start employing the expertise that we have learned from our past experience. When we try to emulate others, we reduce our chances for success. We lose our innovativeness and in so doing we are no longer searching for the niche that makes us stand apart and have something special to offer our customers.

Consumers look for something special, something to identify a store with, whether it be service, product selection, friendly atmosphere, attractive pricing, or unusually high quality. If you are going to give them the same as is available to them already, why should they change from the buytng pattern they are already familiar and satisfied with?

There is so much opportunity out there without straining to be like the

other fellow. This is still a young industry in terms of market share of the consumer's dollar. Therefore it affords ample opportunity for good operators using their own creativity to capture a share ofthe market that they can parlay into a successful venture.

Story at a Glance

Too many imitators in home cenler business...lollow.the. leader spells lailure..retailer must stand apart...customers looking lor stores wlth sPecial identities.

Could be peak housing year

By Arnold A. Dill Senior Vice President Chief Economist The Citizens and Southern National Eank

Tttr LOIG mn ouuooK lor

I housing is determined primarily by demographic developments and income growth. Demoglaphic demand --- for housing will remaln strong through the rest of this decade as the "baby-boom" generation continues to enter the age group when household formation rates are highest.

The number of households in the United States grew 1.990 in 1983 and 1.890 in 1984 and 19E5. Households should grow another l.E9o in 1986, but household growth will then begin a long slowdown as the "baby bust" generation enters the prime homebuying years. Growth in the number of

households should be down to 1.590 per year in 1990, and I I 9o per year by late this c€ntury. While demographic demand for housing will begin to weaken later this decade, growth in real disposable income of about 390 annually should be a source ofstrength to the housing market.

Between 1986 and 1990, housing starts are expected to average about 1.85 million annually. By 1990, howwer, the dernogaphic tide will have turned and starts will trend downward to less than 1.6 million per year between 195 and 204.

The years betwen now and 1990 are therefore likely to be the last strong period for housirg for two decades. The weakest area of residential construction will be houses built for first time buyers. Additions and alterations should rise from around l89o of the residential construction market in

1985 to roughly 230/o by the end of the century.

Regarding the short run outlook, a sharp decline in long-term interest rates since mid-1984 combined with continuing growth in personal income should result in a 390 to 590 increase in total housing starts in 1986. Rising vacancy rates and potential tax reform could cause a modest decline in multifamily construction, but single unit construction should rise enough to cause the increase in total starts.

Story at a Glance

Strong demographic demand lor housing...number of house. holds will grow 1.8Yo...housing stans will average 1.85 million between '86 and '90...1ast strong housing period for two decades.

Rental housing vacancy rates have increased sharply in the southern United States. This is due to a sharp increase in apartment construction and a reduction in the demand for rental units due to the decline in the oil and gas industry. Because of the supply imbalance, the south will have less than its normal share of housing starts in 1986.

Nevertheless, the overall residential construction market should be good in 1986.

New wood markets

will be developed

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

tion to make sure things happen for us.

In that sense, the Southern Forest Products Association (SFPA) is helping to shape the destiny of southern pine lumber.

SFPA certain- ly pays attention to the forecasts of leading economists. In fact, we are a subscriber to the forecasts of Data Resources, Inc. (DRI), which predicts that housing starts will average 1.75 million units in 1986 and then rise to 1.86 million in 1987. And we are well aware of less rosy, sometimes dire predictions made by other analysts.

But we will not wait passively for such predictions to prove themselves on target or wide of the mark. That is why SFPA aggressively developed a five-year marketing plan to increase demand and create new uses for its members' products.

Our five-year plan aims to boost southern pine shipments by 1.4 billion board feet a year by 1990 through greater penetration of such markets as permanent wood foundations, exports, engineered systems and outdoor living/repair & remodeling. This incremental increase represents about $300 million in new sales.

The first year of this bold marketing program is behind us. And, although the program is still young, it is obvious

that we have generated a great deal of momentum for southern pine lumber. Now we are into the second year of the program, with new advertising, literature and customer promotion that will add more marketing momentum.

So the actual number of housing starts recorded in 1986 will not be such a life-or-death factor as it has in the past. We are no longer putting all our promotional eggs in the housing basket. We are spreading out the demand nests for southern pine lumber, which will keep orders coming even if one or two of the marketplaces suffer a setback.

That is just one way SFPA is taking charge of the fate of southern pine.

Canadian lumber imports have been taking bigger and bigger bites of the softwood market share in the south. When all the window dressing is strip- ped away, it's plain to see that Canada's trade advantage is directly linked to subsidized timber prices.

SFPA supports free trade, but we think it is implicit in the definition of

Story at a Glance

SFPA will not be passive...ag. gressive marketing to swellde. mand and create new uses for southern pine...adverlising, lit. erature, promotions seek 1.4 billion bf increase per year.

free trade that it be fair. And what the Canadians are doing simply is not fair. So our association has joined several others as a member of the Coalition for Fair Lumber Imports, which seeks to persuade Canada to stop subsidizing timber prices or to have either a balancing duty or quota applied to softwood imported from our northern neighbor.

The destiny of southern pine is also threatened by the tax overhaul measure, which proposes to repeal needed timber tax incentives. Threatened with repeal are capital gains tax treatment for individuals and corporations, deductions for forest management expenses, and reforestation tax incentives.

Nothing less than the destiny of tomorrow's timber supply is at stake here, because without these incentives potential tree growers would do better by planting soybeans on their land. SFPA is vigorously lobbying to see that these time-tested incentives for timber remain in the nation's tax code.

Finally, and perhaps most importantly, SFPA sparked a candid appraisal of the quality of southern pine lumber. The industry went through some tough self-examination, and qrme away with a renewed commitment to product quality and a new emphasis on making lumber with consumer appeal to match changing end uses.

So, in marketing, Canadian imports, timber taxes and product quality, we have moved with steady purpose. If destiny is more choice than chance, the destiny of southern pine in 1986 and beyond is favored by fortune.

If fS SAID thar destiny is less a mat- I ter of chance than a matter of choice, and that instead of waiting for things to happen to us we can take ac-

1986-instant replay?

By Harry J. Horrocks Il Acting Executive Vice President National Lumber and Building Material Dealers Association

I r ngratl- lumber and building I material dealers enjoYed the business activity in 1985, theY're

bound to enjoy 1986 as well.

Next year will mark the fourth consecutive recovery year for the housing and building supply industries. However, in some areas of the country, dealers have

aX I r5fl.0':"'l;"s

years" where getting by was top priority with an expectation of improved-oP-

lmproveo_opportunities in 1986; next year will be hore of the same. Those dealers located in areas of our country which are dependent on currently depressed industries such as agriculture, energy and certain manufacturing will have to rough it until improvements, out of the direct control of our industry, can occur. Other dealers who are currently doing well can expect continued good times.

Nationally, the industry is healthy' For most dealers, if 1986 is an instant replay of 1985, this will come as good news. Most Washington, D.C. economic gurus predict housing starts in 1986 to be in the 1.7 million range due primarily to stable mortgage rates and accommodative Federal Reserve policy. These analysts point to the Fed continuing to encourage economic srowth at a 3 to 490 GNP annual rate ittd, since there are no indications of a major inflationary upswing, the Fed can afford to monetarize the Federal budget deficit.

Being close to Congress, both figuratively, as a registered lobbyist, and literally, since our offices are two blocks from the Capitol, I must comment that little faith should be placed with the ability of Congress to control mounting deficits. Despite the hoopla associated with the Federal debt ceiling increase legislation last fall, tax reform, and continued call for a balanced Federal budget, it will be politics as usual in this town.

The classic confrontation between liberals defending social programs and big government and conservatives defending the military and no tax increases leaves little room for compromise. As usual, it will be up to the

ingenuity and tenacity of the individual lumber and building material retailer to survive in spite of the presence of the United States government and all it entails.

1986 will be a year where consumer spending on home maintenance and improvement will continue to boom. The astonishing23s/o jump in the first

Story at a Glance

Fourlh consecutive recovery year lor housing and building supply industries...home maintenance spending will boom ...87o increase in doit-yourself spending.

quarter of 1985 for upkeep expenditures over the last quarter of l984is a clear indication that consumers are willing to dig deep into their pockets for home improvement projects. The numbers are truly staggering. Homeowners and property managers will spend approximately $83.1 billion for upkeep in 1985 according to rcnt economic statistics from the Commerce Department. Sixty perent of this figure consists of individual homeowners. Since in@me, employment, and economic statistics remain strong, there is no indication that homeowners will slow down in their home improvement spending. DGityourselfers repres€nt a large peroentage of the home upkeep business. Expect an increase in 1985 of about 89c over this year in do-it-yourself spending.

So, 1986looks like the classic mixed bag for our industry. Customer loydty will be essential in this very competitive business environment; profit margins will continue to be too narrow for business overconfidence and business conditions will remain steady for the next 12-14 months. If business is good in your area, smooth sailing is ahead; if business is bad, keep bailing!

Record panel production

By William T. Robison President American Plywood Association

Tne AMERICAN- Piywooci AsI sociation (APA) expects 1986 to become the fourth consecutive record year for structural wood panel pro'

duction. Unfortunately, that good news comes tempered with the fact that industry capacity still exceeds market demand. APA's overriding challenge in 1986 and throughout the decade, therefore, is to bridge the gap between capacity and demand by developing new markets and expanding existing ones.

To that end, APA's 1986 pro motion plan reports several carefully targeted promotional programs in each of the panel industry's five major markets -residential, nonresi-

dential, distribution, industrial, and export. Together, they offer a net increase in l9E5 demand of about 475 million sq. ft. (3/8" basis). The latest volume forecast is 22.6 billion for 1985 and 23 billion, with the PromG tional gains included, in 1986.

The forecast for overall improvement next Year takes into account an unopected 390 decline in housing starts. That represents q drqP from APA's latest estimate of 1.75 million starts this year to 1.7 million in 1986.

Stilt, housing will remain far and away the panel industry's single largest and most important market, consuming approximately 400/o of total production. And while a modest de' ctine is expected next year, substantial opportunities have been identified and targeted for promotional emphasis. These include floors and foundations, siding, and manufactured housing.

Healthy hardline sales ahead

By William P. Farrell Executive Director American Hardware Manufacturers Association

T -r \-Lrrvllr\\r yeau appears ar I this point to show promise of a continuation of the stable, healthy sales that characterized the U.S. hard-

lines manufacturing industry in 1985. These stable, healthy sales translated into a good business year for most.

While consumers did not go wild with their purchases in 1985, and are not expected to do so in 1986, there is a convergence of opinion amongst forecasters who view our industry that overall do-ityourself product sales at retail should show average annual growth of over 590 for at least the next several years.

To support this view, forecasters point to a variety of key factors that

The distribution market, defined by APA as home repair and remodeling, do-it-yourself applications, and miscellaneous uses not elsewhere classified, is the panel industry's second largest outlet. It is projected next year to consume 6.2 billion sq. ft., or 27v/o of total production.

Repair and remodeling, according to APA estimates, offers an additional 60 million sq. ft. of market opportunity in 1986 and will be the key focus of next year's distribution market promotional efforts.

Several factors appear to favor a strong remodeling marketrelatively high mortgage interest rates, stringent

Story at a Glance

Industry capacity will exceed demand for 4th year

housing expected to use 407o ol total production, home repair & remodeling, do-ityourself, 27o/o .. promotions will beef up these figures plus exports...

will influence the market in coming years. As Bert C. McCammon, Jr., director, Distribution Research Program, College of Business Administration, the University of Oklahoma, notes, these factors include: The resurgence of housing turnover; the explosive growth of heavy spending households; the continued drive towards affluence; the growing

Story at a Glance

D-i-y product sales of 5o/o ...housing turnover resurgence ...continued household growth, home centered lifestyle, afflu. ence...more import competi. tion, lower profit margins.

home loan qualification requirements, a sizable group of homeowners able to convert appreciated equity into home improvement cash, a growing corp of do-it-yourselfers capable of larger and more costly repair and remodeling projects, and a substantial force of marketingminded professional remodelers.

The do-it-yourself market also appears to offer strong potential next year. It is an elastic market that responds to promotional efforts. APA intends to expand those efforts in close cooperation with the increasingly aggressive homecenter and retail network.

Other major 1986 market opportunities identified byAPA include nonresidential wood roof systems, materials handling, transportation and foreign markets.

International markets at present account for only 2o/o of total structural wood panel demand. However, exports are expected to play a critical role in APA's long-term campaign to ameliorate the over-capacity problem that currently confronts the industry.

That campaign includes a 1990 demand goal for all structural wood panel markets of 27.5 billion sq. ft., of which next yeal's projected 23.1 billion sq. ft. represents 8490 percent.

importance of home centered lifestyles, and the continuing commitment to the do-it-yourself ethic. Taken together, they lead to predictions of growth in real do-it-yourself sales ofover 590 a year through 1990.

This forecast for an expanding market at retail is, however, severely clouded for U.S. manufacturers due to marketplace factors that place downward pressure on profit margins. These factors include the continuing flowof lowcost imported hardline products into this country, primarily from the Far East, and the ever-increasing competition for the market share amongst the various players in the hardlines industry distribution channel. A major component of this competition within the channel, of course, is price, with the result that many manufacturers are experiencing increasing pressure from their customers for price reductions.

The downward pressure on price, and therefore profit margins, is further exacerbated by the continuing flood of low cost hardlines imports, particularly those which seek to gain market share through unfair, illegal and predatory competitive practices.

Manufacturers are responding aggressively to both situations. First and foremost, they are making a careful examination of their own operations with an eye towards achieving cost reductions wherever possible. Second, they are tailoring their programs and making them more flexible and responsive to the specific needs of their customers.

Where customers are looking for services and programs that will help them compete in their markets on a basis other than price, manufacturers are working closely with them to develop and refine their programs and services for maximum impact and productivity. Similarly, where price alone is the determining factor, manufacturers are working with customers to determine which services they need and which ones are not considered essential.

Through these continuing efforts to go to market "leaner and meaner," manufacturers are working to assure that the generally positive forecast for do-it-yourself product sales in the years ahead will translate directly into healthy margins and increased profitability.

We will have to be better

By Pete Niebling Executive Vice President North American Wholesale Lumber Association

HENAWLAwholesaler. and the producers and the retail dealers . . will have to work harder and be "better" in 1986 if they are looking for profitability.

The bottom line of most business forecasts for next year is a repeat of 1985 for the forest products industry. The marketplace will remain highly competitive. supply will continue to outpace demand. We will have about the same level of residential housing activity. Other forest product markets will approximate 1985 in volume and demand.

At the manufacturing level, there will be those who will continue to strive to be the "lowest cost producer." At the retail level, there will be continued emphasis on buying right and tight inventory controls. We would suggest to our suppliers and customers that in addition to these concepts, they would be well served to consider what the wholesaler must do to be profitable in 1986. Wholesale lumber firms are going to have to work harder, sell more aggtressively, implement operating cost containment wherever possible and develop long-term marketing strategies to be profitable in 1986.

Long-term marketing strategies cover a number of areas. The successful wholesaler must start with personnel. They need to continue to improve their motivation and their knowledge of markets and products. In addition, supplier-wholesaler relationships and wholesaler-customer relationships must be continually enhanced by performing the wholesale function better than ever. As firms strive to become "the most efficient wholesalerdistributor" they will also have to deal with operating costs and industry problems such as transportation and business insurance costs.

It won't be easy to be better in 1986. Time is the primary obstacle. Yet, there is no other answer to being profitable in a mature industry marketplace.

Over recent months, NAWLA has been advocating that mills and wholesalers network with each other at every opportunity. The changes going on at both levels of the industry will re-

quire this increased interface. Dstributors must know what the needs of the supplier are. In turn, the producer must be exposed to the changes in the marketplace. Our Regional and Sector meetings this past fall clearly indicate that many wholesalers and mill sales managers are implementing increased dialogue with one another.

For many months, NAWLA has suggested that the forest products

Story at a Glance

Wholesalerc, producers, retaalers have to work harder...supply will outpace demand...strategy and cosl contaanment important...imporlance of training.

salesperson of the '80s must be more professional and more knowledgeable. Again, we are pleased to note that the two 1985 NAWLA Wood Marketing Seminars had full enrollment and that sales of the NAWLA In-House Training Video Tapes remain brisk. A great deal of time, effort and money is being spent by NAWLA wholesalers to improve their staff people.

Networking and upgrading the professionalism of staff are long-term strategies. They will pay off in 1986 but such gains will continue in future years as well.

For the short term there is cost containment. Success in this area next year will likely be in the area of electronic data processing, telephone expense and business insurance. There is a business crisis in company insurance and those firms who best contain these operating costs will fare the best in the coming months.

The industry today is composed of survivors from the slump of the early '80s. Yet, there seems to be no industry boom on the horizon and there are plenty of problems that lumbermen are trying to deal with. We would suggest that the survivors oftoday have to be the prolitable survivors of tomorrow. It will demand more time, more commitment and more planning.

Long term looks good

By Xeith [rnning Executive Vice President & General Manager California Redwood Association

term as well as short term potentials and the effect on both of the influx of

Canadian lumber, now respon- sible for one third of U.S. lumber sales.

In the short term, Canadian shipments have caused a serious drop in prices of many U.S. species. Redwood clears and uppers have been less affected than other products, but the cornmon grades of redwoodthe garden, deck and outdoor use lumberare in stiff price competition with other knotty species whose lowered prices allow them to be pressuretreated and marketed for the same end-uses.

Short term redwood projections must consider the price impact of the Canadian influx as well as the increase

of pressure-treating of other species and the marketing efforts being put behind these new products.

The redwood response will continue to stress the inherent natural qualities of the wood that make it such an ob' vious choice for outdoor projects, and will drive home the message that the buyer is assured of a dependable sup ply from long-time producers. It will be a competitive year, but redwood sales are expected to keep pace.

The redwood industry's dwelop ment of new air-seasoned sidings from the common grades of lumber is another answer to increased competition in commons sales. Thesc new products have been well received in the marketplace and will continue to strengthen redwood commons sales.

In the long term, all redwood markets have reason for optimism. Continued @nsumer affluence and emphasis on the pleasures of outdoor living are creating nationwide demand for decking lumber that can allow room for many species in the market, and gradual strengthening of the

I Nv FoRECAST of lumber I1nsf,ets should consider long

Canadian dollar may slow the flow of that country's lumber into U.S. markets.

But the most promising prospect in the long term picture comes from a new and different developmentthe growing popularity of traditional housing styles. Traditional design creates increased demand for bevel siding, roof overhangs and soffits, wood detail and wood window and door framesall excellent markets for redwood.

The graying of America is a big factor in this traditional trend. Older Americans are the fastest growing segment of the U.S. population today, and they are comfortable with the traditional look in both houses

D-l-Y

flun TNDUSTRy today is char-

Yacterized by excitement and incredible growth. Many companies, including Ace, are enjoying the best year in their history. Reduced interest rates, increased housing starts, greater consumer spending and more. d-i-yers are creanng opportunities to grow and prosper.

Through 1990, the compound annual growth rate will be 8.590 in the home improvement market. Factors going into these projections include the aging housing inventory which needs constant upgrading. There are an estimated 50 million homes which rue over 20 years of age. Experts also expect an increase in home sales, and recent home buyers spend 4690 more on d-i-y projects than the average household.

Other statistics show that the d-i-v industry is entering a new strategic eri characterized by a sustained high level of demand and above average earnings prospects. Incomes are up with the strengthening economy. Unemployment is down. The years ahead will present great opportunities for those who know their market and their customers.

Identifying the consumer and meeting his needs may well be the biggest challenge to all of us, as well as to our

and commercial buildings. Many empty-nesters are buying townhouses, multi-units or other shared facilities, and all are heavy users of low-rise

Story at a Glance

Redwood faces competitive year with Canadian and pres. sure treated lumber..air.sea. soned sidings will strengthen sales...traditional country style home using wood is emerging trend.

commercial professional buildings. In all of these building types, they tend to prefer structures that have the same feel and style as the single unit homes they previously enjoyed.

There is a return to traditional values among younger buyers as well, and the new traditional, country or cottage-style homes have a romantic charm that make them attractive to this vital market.

Americans of all ages are indicating clearly that they like to live with the beauty, familiarity and richness of natural wood. Redwood. with its inherent quality, high recognition, and proven performance, will profit from what appears to be emerging as a solid long term building trend.

enters strategic era

By Lawrcnce R. Gavin President Ace Hardware CorDoration

industry associations. Studies show that consumers look for durabilitv before price at the top of their priority list. They are also very conscious of energy conservation.

Today's d-i-yers are second generation "how-to" enthusiasts. They are upscale and willing to tackle more complex projects. They are also more willing to purchase quality, both in redoing previous construction as well as improving amenities. The problem of economy construction has increased demand for quality d-i-y merchandise. Meanwhile many of today's consumers are upgrading their homes with higher quality items to reflect their improved financial status.

Baby-boomers are the largest demographic segment of the market. These 70 million Americans, born between 1946 and 196/, are grown up now. By the end of the decade, they will account for more than half of all consumer purchases. Developing ways to reach this group is about to become

Story at a Glance

Home improvement to grow 8.5%...d-i-y will increas6 12.7o/o ...baby boomer will make 507o of consumer purchasgs by 1990...challenge of new mar. kets will bring casualties.

imperative for retail success, and for many retailers, for survival.

By 1990, nearly every other household in America will be headed by a baby boomer. These are households with money to spend. Already 25s/o of this generation makes at least $35,000 annually.

Our challenge is how to understand what motivates this special group of consumers. Unless we do, we will find it impossible to forecast the coming years from a consumer marketing perspective.

The baby boomers need to be stimulated, not only in merchandising content, but in store design, merchandise presentation and advertising. Retailers, wholesalers and manufacturers that follow the moving target as this group matures will be the great winners of the future.

Looking at the present, members of our industry are finding that it's no longer just business as usual. Unlike recent years where growth was automatic, there are only two ways for a company to generate more real growth: do more business with existing customers or take customers from the competition. Taking customers from the competition means that there are going to be some casualties.

Suppliers, wholesalers and retailers who join together to meet the challenges in the marketplace, will all come out on top. Those who are aggxessive and capitalize on these combined strengths will have an outstanding future.

Edward Hines Lumber Co., Chicago, Il., has sold six distribution centers including one in Tulsa, Ok., to Hinco CorP., an affiliate of the Hudson GrouP, New York City, for $7.9 million.

Hechinger Co. has opened two warehouse stores in Rochester, N.Y.. .Cox Lumberhas oPened a 15,000 sq. ft. unit in BaYonet Point, Fl.. .Home Quarters, Virginia Beach, Va., will hold a grand opening for its third store in Columbia, S.C., early next Year.

Lowe's has purchased a store site in Sarasota, Fl., for $1.15 million and opened a building materials consolidation site in Charlotte, N.C.. . .The Home Depot has opened two units in Jacksonville, Fl., and one at Kendall (Miami), Fl..

G & M Building Center is the new name for Smilh Building Center, Skiatook, Ok., recentlY purchased from Ed Smith by Virgil Cardner and Larry Moore; Smith continues ownership and operation of Smith's Grand Lake Lumber Co. in Ketchum, Ok..

Goldston Lumber Co., Wake Forest, N.C., has opened Goldston's Building Supply. . Coche Lumber Co. has leased a 26,W sq. ft. location in TamPa, Fl.. Wright Lumber Co., Clinchburg, Va., had $200,000 in damage in a recent fire...

Bobby Levy has sold Moody Lumber, Moody, Tx., to J.L.H. Inc. which has changed the name

to Moody Lumber and Hardware; a remodeling is being completed under the direction of J. L. Hitzfelder,mgr....

Kempsville Building Materials, Virginia Beach, Va., is observing its 3lst anniversary. .lAhile River Hardwood, Fayetteville, Ar., just celebrated its seventh anniversary.

Piedmont Forest Products, formed by Tinity Forest Industies in conjunction with former American Forat hoducts mgr. Joe Contestabile, is new in Hurst, Tx. Wood Right is a new div. of Emwood Lumber Co. (Closter, N.J.) opened in Albermarle, N.C., Rich Inskeep, m8r..

The Crystal Springs, Ms., office of Klumb Lumber Co. has been moved to Jackson, Ms. Berson Lumber Co., Pawhuska, Ok., recently celebrated its 69th anniversary...

Tetnple-Eastex Inc. is building a $18 million gypsum wallboard facility at Fletcher, Ok.; completion of the 220,000 sq. ft. plant is set for June. .United Cootings, Inc., has opened a new 52,000 sq. ft. mfg. plant in Ennis, Tx..

The Notionsl Wood Window & Door Associationhas added a stile and rail door div. . .

Weyerhaeuser, which has acquired CanterBoard, Inc., Thomasville, N.C.,for an undisclosed sum, will begin a 24o,ffi sq. ft. addition to its Moncure, N.C., fiberboard plant early in '86 with a Sept. 1987 completion date.

Macklanburg-Duncon, Oklahoma City, Ok., is buying Industrial Cement Co. of Texas Inc., Fort Worth. and Industrial Rubber Cement, Inc., City of Industry, Ca.. Pasco Building Systems, which has a plant in Columbus, Ga., and York Manufacturing Co.,both units of Gifford-Hill, /nc., Dallas, TX., have been acquired by Ceco Industries, Oak Brook. Il.. .

Sv,ain Building Materiab, Leland, Ms., has sold its Houston, Tx., facility to a company outside the lumber industry. All Woods/ Schroeder, /nc., Houston, Tx., is establishing a distribution warehouse in Denver, Co..

GAF has acquired more than '7Vo of Union Corbide. .Inrernational Paper Co. will lay off an undetermined number of salaried u'orkers and offer early retirement to 1000 . . Owe ns-Co rn ing is buying Arntco ./nc.'s aerospace and strategic materials group for $415 million.

Loubiana-Pacific Corp. plans medium density fiberboard plants for New Waverly, Tx., and Urania, La., plus a Waferwood plant in New Waverly. .Champion International Co4p. will close building products plants in Lumpkin, Ga., and Vance, Al., midmonth. ..

Housing starts leaped I0.8To in Oct. (latest figs.) to an annual rate of 1,760,000 units, the highest in 6 months. . Single family homes were at a rate of l,l23,m units, a 15.890 increase; multis at 637,m units were up only 2.990. the South contributed to the national increase with a 14.7s/o Nke. some analysts are confident that lower mortgage rates and a stronger economy will bolster starts for several months although permits were off 1,2010 at I,675,W units...

E EXPECT 1986 to be a pretty good year for wholesalers of building materials in our area. Our conservative estimate is that distributors' sales increases over 1985 should be around 1090. This is without expecting any significant price inflation.

This increase should come from several directions: first, from modest improvement in the overall economic strength of our region. Manufacturing should go up a bit; agriculture should hold steady, even if not at a particularly healthy level; mining and natural resource income will be down, offsetting some of the earlier growth.

Second, distributors who have been through the early '80s are generally stronger and better organized. They are doing a better job and will continue to improve. There is not much complacency or fat left. Distributors are offering dealers more value at better prices. Alert dealers recognize this and are responding by giving wholesalers a better shot at business that has been going through other channels.

Good year for wholesalers

By J. Hays Wimsatt Wimsatt Brothers, Inc. Louisville, Ky.

This leads to the third reason that we think we'll have more business. The independent dealers who have lived through the last ten years and the build-up in chain competition are a lot stronger and smarter. They are much quicker to recognize the value of their investments in time and inventorv. A good wholesaler can help them maximize these assets, both tangible and intangible.

From time immemorial we have been told to control our costs. train

our people, know our customers, understand the numbers of our business. Up until just a very few years ago, while we believed what we were hearing, we really didn't worry if some of the hard work of shaping-up was pushed aside for awhile. This applied to many pretty good companies at every level ofthe business. Ifwe have survived, we not only know what to do but we're doing it today.

Of course, the business that's out there in our market never stays neatly in old, comfortable channels. New companies and old companies with new ways get to the consumer with more appeal and better prices. This will accelerate in '86 and will soak up a lot of the increase we expect.

In short, we expect the total market in southeastern United States to grow a bit next year and we think wholesale distributors will increase their share just a bit too. One thing is almost certain: there will be no easy pickings in 1986 for anybody in our business, dealer, wholesaler or manufacturer.

Story at a Glance 10% sales increase for build. ing malerial wholesalers... companies working smarter... competition will accelerate . total soulheast market growing.

WesternSoftwoods, Moufdings & Millwork Agficufturaf Wood ProduGts, Pl5nrood, Particleboard

CALENDAR

DECEMBER

Societv of Arnerkrn Wood Preservers, lnc.Ihc. l(}l2' annual meeting, Stouffer Concourse Hotel, Cmtal Oty, Arlinglon, Va.

Western Wood Products ScminrrDec. ll, Hilton Inn' Lexington, Ky.

JANUARY

Lumber Association of TexesJen. &10, basic estimating seminar, Arlington, Tt.

Lumbetrnen's (lub of MernphbJen. 9, installation luncheon' Memphis, th.

Hrrdwrrc Wholesders, Inc.-Jen. lt'12' wintcr building products market, Wyndham Hotel, Orlando, Fl.

Mmufrtured Houdng lnstituteJen. lSD, manufactured housing show, Ky._Fair & Exposition C-enter' Louiwille, Ky-

Americen Hsdwrre Sopply Co.-trn. llllT' lumb€r marka' Hollywood, Fl.

Westcm Wood Productt Associrtior-Jrn. 16, raail seininar, Orlando, Fl.

LTIMBER: Robert Glatt, division mgr.; Jim Haas, Bill Hanrahan

MILLIITORI(: Richard H. Mills

We are also pleased to be a West Coast area distributor for CF&I steel products as well.

BERGER & @MPAIVY aCo,

1a @nagra comparyl

ISANINTERNATToNAL AlJ

@MMODITIES TRADING

ORGANn-TIONWITHOFFICESiIN: San Francisco. Ca. (headquarters); Chicago, Il.: Colfax, Wa.: Fargo, N.D.: Filer, Id.; Grand Cayman, British West Indiesr Santiago. Chile: London, England: Geneva, Switzerland; Nicosia, Cyprus: Buenos Aires. Argentina: Moose Jaw, Canada; and Taipei, Taiwan.

Lumber Associrtion of TbxasJen. lGl7, speed estimating seminar, Austin, Tt.

National Association of Home BuildersJen. 17'11, convention & exposition, Dallas Convention Center, Dallas' T(.

Adrntr Houscruts & Hrrdrrrrc Slow-Jrn. tlD, C-ieorgie. World Congress C€nter, Atlanta, Ga.

Okbhome Lumbetmen's Asodrliotr-Jrn. 29-FcD. 5' midwinter meetiru/educational confetence, Rio Shraton Hotd' Rio de Janeiro, Brazil.

BuiHing Mrterirl Merchrnts Associrtkm ol C*lryh & AbbcneJen. 3GFeb. I' annual convention, Atlanta Civic Center' Atlanta, Ga.

HoushoH App[rtrcc Ttr& Show-Jrn. 3l'Fcb. 3, Paris, France.

FEBRUARY

Gcnenl llrrdrren Co.-Fcb. l-2, market, Shcraton Twin Towers Convention C.€nt€r, Orlando, Fl.

Netionel Wood Window & Dool AssocirfnoFeb. l-5, annuel meeting, Marriott Hotel, Marco tsland, Fl.

nrmnghen SprhS Frfo-Fd. 26, housovates, Birmingbam, England.

Lumbctmcn's Ascodrtbtr of Tcrrs-Fcb. 4, r€tail lumbcr scminar, Houston, Tx.

Feh for Home Applirrc-Fcb. 47, C-olognc, Wcst Crcrmany.

Lubetmen's Assodetlon of Tcrrs-Fcb. 5' lumb€r marketing seminar, Houston, Tl.

Lnmbctmen's Ascodatlon of Tm-Fcb. 6, r€lail lumbcr scminar, C-orprs Christi, Tx.

Forcst ltrdusfhs Advfuory C-oundlFGb. l}lli' meeting' Occan Reef Club, Key Largo, Fl.

C-ongtnrc'ta 't6 HrnnoverFcb. llD, international buildfutg trade exhibition, Hannover Fairground, Hannover' Wes CrermanY.

Itfid-Amcrice Lombsm's AscodlboFcb. ljl'l|, annud oonvention, Bartle Hall, Kansas Cty, Mo.

Crrolinr LunDcr & Buf@ ItlrtcrU D*s AndrtblFcb. 1115, annual convention, Charlooe Conveotbn C-tntcr, Charlotte, N.C.

ttOsscbpi hildhS llrtcrirl Ilcetrr AsodafbrFcb.l+Ii annual convention, Biloxi, Ms.

World of Concrcte 'E6Feb. 1620, annual exhibition, Cprgia World Congress Center, Atlanta' @.

advertised price. By 5, l0 or as much as200/0.

Thus this industry is in the midst of an intensive price war, and if price is to be the battleground, what is there to distinguish one home center from another? The answer of course. is a

HE HOME CENTER retailing business has never been as competitive as it currently is. Not even discounting is as competitive. Discounters learned long ago not to worry about being outpriced on a few items in a promotion. Home centers aren't happy if that happens and are matching or beating any -

Home centers must upgrade selling skills

By Robert C. Vereen Senior Vice President/Director Home Center Institute

Story at a Glance

Homecenterbusiness has never been as competitive... price is the battleground...employee senrice a vital weapon ...industry must develop selling skills.

combination of other factors, but chief among these should be the quali ty of employee service and advice.

While all retailers talk about their employees and their training programs, surprisingly few make a serious and prolonged effort to upgrade performance. Programs that start out meaning well get caught up in the battle to keep payroll expenses down. The

(Please turn to page 41)

Highest Ouolity Possiblc ot Competitive pricing

in CCR TVpe C Pressure Trcoted lumber, coll

c u R T

I N c.

Rrkonsos tlrRTs l-(800) 482-23s2 Notionot tlrRTs l-(800) 232-2326

Bltt IIRBDING o LINDR PRtDDv o ROSS RRSSTUIUSSCI{

tlje con fill oll Vour treoted lumber needs. . . londscope timbers, plyulood, oll dimensionol lumber, 4x4 through 12x12. On 6x6 ond lorger uJe hove lengths ronging up to 4|-feeE. Plus, ure nou, corrv in stock .60 FDN. [Ue olso hove our ourn fleet of trucks to holp you solv@ ong dolivery problems Vou mog hovo. llll our mot@riol is TPI grode mork@d. lue teoture the Rl.uPB quoritv mork on oll our treoted moteriol.

lUhen Vou uront the highest quolitg ovoiloble

Home Center Merchant

BILL FISHMAN

Bill Fishman & Affiliates

1 1650 lber a P ace San Diego. Ca. 92'128 it.r, rrere marked doqn a lille lo(r-rr) s\\eeten the pot.

lIg$' YEAR'S Da1 sale ar Forcsr IICin \\as an annual event in thcClerelani market. It gare us rhe largest volume day of the )ear riith trafttc bought rrith radio adrcrtising.

Radio stations can't sell commercial time on Neu Year's Ere. National adrertisers don't want lt. \1ost retailers sh1' a*a1' from it. The stations run all night long danee partie) from 8 p.m. December 3lst thru 8 a.m. Januarl lst. \\'e bought 'em all-dirt cheap. The statrons \\'ere happy to negotiate for a total package for this one evening.

Each year ue sponsored the all night programs on as man! as a dozen dif ferent stations at a cost that \\as less than our regular l2 page ne\\'spaper tab. \'ou couldn't push a button on a car radio * ithout hearing that the "Annual Clearance Sale Stans Tomorroq (Todar ) at all Forest Cit-v Stores. Free coffeefree aspirin for all shoppers." The radio promotion r,'as backed up with a double truck ad in the holidal neuspaper. Our headline read: "Starts toda) -Ne\\ Year's Day."

Except for the blizzard one vear, the cro*ds rvere waiting for us to open the doors. Plentl of onesie and t*oste damaged items, displai models, weathered goods, and our ot erstocks and buyer's mistakes \\'ere promoted. Basic

\es Year': Da) care u. a greai kr:).oif fcrr our threc' ri c'ek Januarr JIL'arAnJ!'. It'' nice to start thc'ne$ \r.ar \\iih a \\t:tnlllg r'rolllotlon.

Sonre holidar s are a natural for homc' ..pnl('r nromotj,rn. Sp61g rrill nerer riork. Here are a ie* oi mr rrinner: ant.i lo:ers.

\',{LE\Tl\E'S D.{\: .{ roral ilop.

T*iee rre rnrg'1r'cl in promotinu .'u: stores for cift items. \\'r'u-.ed plentr oi hearts in our ads. ran a riishrng *ell contest entitled "\\'rn Your Heart's Desire" and eren ofiered iree giit \\rapprng. Nothin-s uorked. I don't thrnk it erer u ill.

PRESIDE\T'S BIRTHD.\\': Crrmirining Lincoln's and \\'ashingron': birrhda1s rnakes a good handle for a :hon terrn \alL'. CIerer merchandising is the ker to prolitabilitv, \\'ithout careiullr analr zing the mcr;h.indi.g ppg.r'v1111i,rn ,l retailcr can g!'t ll cented inltr a ;orner \\ ith lots of traifrc but onlr onlr a :nrall dollar r olume.

EASTER: Leare it to Ine read)-to-\\ear retailers. The ueek beiore has traditionalli been slo* for hardline retailer:.

\IOTHER'S DA\': chain mer.-handised rr arc'. :mall e lectrics, teler i:irrn and audio, the.c ,lpnrrtmpnr< iigure' did nrrt reflect .'rea'e\.

E\ en though rrur nouse\\ares. glllmajor appirance.. *e could not peak The overall store anl significant in-

\lE\1ORl.{L D.{\: Thi: .ignal. :irc' kick-oii tri the outdtror \eason. \\ e rrc'rc able to bur Sundal iir;ulation ir)r \\eekdar rale: itrr rruf iat\:eaii!rn. Holidar \tL)re lraiita s3: bi,s. The arera,ee licke: * a: brg. The ttrral s eek :egl:le:eJ : hc' highe:t dtrllar r trlume ol the 1ear. Sale. rr. e\er) depaflment \\efe't:!rng: \rlnlnlr': :BdStrflil i.:he leader. La*n anJ ca:Jr':r. ouldLrLrr b,uilding nrirrear. la;kag.-. erJ the trpreal .pring tlr-up :ne::r'..ilr..l:.a f,eak thi. s eek.

F.\.fHER'S D.\\ : \lsat\ ::r\ir'.:\:r!. .{lirar. di.appoinrrng :

l\DLPE\DL\(L D.\\ : S.n:c::i1.. ,soodI Sometirnc. tcr:iL,lei \Ir;ir Jcpe::;. ,'rt titc \\cirllrer I:rr' .':"r:Jq:'::r' \lclnorlal Dar .alc. i he nttrrc' rj t.app.,l ;t:ine the Indc'pcnJen;c' Dar rolunrc'.

t-..\BOR D.\\. Blahl

C'OL L \lBL S [).\\': .\ ,1..J :]anJl. l.':- .t ,'ttc Ja) rr.)ll)\\tl\)1. :t \.'u -J:: :ili:-l:.r:l' Ji:c:tr11c'glrop deaJ priie.. Besa:cl In 'rl|ne iitic' 1-!'tailer-. gci rulir loJ.ir. Cust.rnter' get a littlc Jrrz) lrrrr.

TH.\\KS(llVl\C D.{\ : Eretr * :tir :i:e itorr'r Ji0ic-d thi: rrar the tradit:.'nal iay to t'la:t ihe 'Ccl YJU: Hlrme RcaJ'. i.rr thc' HolrJari" thcme. Tne gtll\ :\iic

South Bay Forest Products, a very special manufacturer of specialty lumber products, has a winning combination for you.

Call Soulh Bay Forasl Products 22fi1 No. Glassell, Orange, Ca. 911667 (714) 637-s3so (213) 8607791

R EDWOO N FINISH PATTERNS CUT STOCK

manufacturor spociallzing in westem specialty sottwoods * ',3n.tE*e,"f!-'r:r.i {fii 1-ll};1,ii,, i::UGLAS FIR FINISH SIDINGS BOARDS DIMENSION TIMBERS DECKING SPRUCE & PINEPATTERNS SPECIAL ItIOULDINGS

INDUSTRIAL MOULDINGS & MILLWORK

Wholesale only

December 'l985

itcms gave us lhc tonnage (thanks to trima-tree, housewares, rnajor appliances and television and audio co-op). B1' experimenting rve discovercd that our Iurnber and building matcrial sales did not die on Decembcr lst. When *e aggrcssir e-lr prorn()tcd our [rlsic depart rncnts througft [)cccrnber l0tlt we tnlrintaincd our volunic in these basics until a wcck bclirrc Christnras.

CIFIRISTMAS DAY: When the economl' was strong, and bonuses were common, the day'aftcr Christmas was a good day to prornote big ticket sales: rernodeling packages, major appliances, telerisions, etc.

\\'hile holidals and salc themcs give cohesion and justification to a storcwide event-il's the merchandrsing that deterr.nines the success and profitabilitl' of the advertising expcnditure. It takes impact, creati\rty and sorne bold price cuts to bring in the traffic.

"And, Boswell, I want .tou tr.t heatl u torntnittee thctt rrill go to n'ork utttl organi:.e ct t'orrtrnittee o.f

"

Home Size Grows

Ne* singlc-famill' homes are being built larger, according to the U.S. Census Bureau. The median size rose in 1984 to 1,605 sq. ft., an increase of more than 40 so. ft. over 1983.

TOPICS

JOE BUILER, SR. erecutlve

vlce preddent

HE LUMBER Association of Texas will sponsor the Totally Effective Sales Professional seminar on Dec. 10, 9 a.m. to 4:30 p.m. at the association offices in Austin, Tx.

Joe Charbonneau of the Performance Group, Inc. will be the instructor. Billed as one of the finest presentations in America, the seminar is the result of 12 years of research and development into why some salespeople reach levels of excellence and others fail.

The workshop enrollment includes a 72 page manual covering the presentation. Participants will take part in group discussions, exercises designed to create desire for performance improvement, goal setting and using measuring tools to assure future results.

The workshop is effective because it is action oriented, using group dynamics and multiple applications. It is highly motivational and results oriented.

Material which participants will learn includes increasing personal and professional value, how to build on personal strengths, understand the difference between a winner and a loser, have a profitable day every day,

ARKANSAS a OKLAHOMA

LTHOUGH workmen's compensa- Idqn l3v,,s varv from state tO state. the dollar impact of their cost to businesses is common to all. Generally, everyone regards workmen's compensation as just another

administrative function mandated by law to serve as some protection against the possibility of work-related injuries. It certainly is not a subject that tweaks the creative interest of either management or employee.

However, the millions of dollars that are annually paid out of company funds for workmen's compensation premiums are

understand, motivate and build loyalty among clients and prospects, how to overcome discouragement. Detennining sucrtss or failure, staying motivated and applying skills to be an exceptional salesperson also iue part of the rminar.

Charbonneau has conducted over 150 workshops in the United States, Canada and Europe.

Registration is $175 for the hrst person from each company and $155 for each additiond repres€ntative. Enrollment is being handled by the LAT office.

Three additional rrninars are rheduled before the end of January. A basic construction materials takeoff workshop will be held Jan. 8-10 at the Rodeway lnn in Arlington. A Darling P & P speed estimaling serninar will be conducled at the LAT building in Austin, Jan. lGl7, and a petsonal financial planning seminar will be offered by E. Deane Kandy, Kanaly Trust Co., Houston, ar the LAT building, Jan. 2l-22. Nl workshops are op€ri to both members and non-members.

signihcant. The impact of thousands of work-related claims, which cost busin6s6 millions of dollars in direct and indirect costs, is important. There are major hidden costs in loss of time accidents, such as replacement employment, training, overtime wages, equipment repair and downtime. Also, the human pain and suffering that accompanies death, dismemberment or other tragediG resulting from work-related accidens must be valued in some way.

Workmen's compensation is an intqral part both of the cost and profitability of do ing business. A rectnt comparison was c!nstructd to emphasize the amount of additional production that is necessary to offset each $50) work-related accident along with its accompanying costs. While exad fryures

To our valued customers, Happy Holidays and Season's Greetings trom all of us at Fullmer Lumber. We thank you for your support throughout the year.

may vary, the illustration points out that builders must construct an additional 582 square feet of space; a paint manufacturer must produce another 3,300 gallons; a tool manufacturer must make another 1000 hammers, etc. The concluding argument is that work-related losses can be minimized and, in many cases, eliminated.

Lumber dealers can take positive action to lower their overall costs of workmen's compensation by not only implementing sound practices and programs that get everyone involved in safety, but by participating in a dividend type program like the program available through MLA which pays cash dividends. Dividends are calculated in two waysfor the group as a whole and for each individual. MLA then pays the total of the two back to you.

The underlying key to the precept of MLA's workmen's compensation plan is safety-mindedness. Simply put, if you have no losses, you don't have to pay as much for your insurance. The commitment to achieve desirable results, however, must come from the top level of ownership. Passive interest will dictate poor results, whereas positive interest will generate dollar results. Workmen's compensation is an influential part of the bottom line. Proper safety attitudes can most assuredly sweeten the pot.

If you're not insured with MLA and wonder how much of a dividend might have been yours, call us.

OKLAHOMA NOTES

executlve vlce preeldent

EMBERS and guestsof OLAwill go to Rio de Janeiro, Brazil, for the association's mid-winter meeting,/education conference, Jan. 29-Feb. 5, at the Rio Sheraton Hotel.

A full schedule of business meetings is being planned. Reservations will be limited to 100.

Gerry Weltzheimer, Expo '86 convention chairman, reports that more than lm exhibit spaces have already been requested by last year's exhibitors. The official mailing to all past and prospective members has just been sent out. "This is a very positive indication that our frst ever spring time convention and exposition will be sold out earlier than any previous conventions," he said, "and several changes will be introduced at Expo '86 which should make it the best convention ever for the Oklahoma lumber and building materials industry."

The 4{hh annual convention and building products exposition is scheduled for April 4{ at the International Trade Center Building on the Oklahoma City Fairgrounds.

A recent seminar sponsored in Oklahoma City in cooperation with the Western Wood Products Association was rated excellent. Those attending included "Skip" Blakley, Bud Blakley Lumber Co., Chandler; Steve Bryant, Vernon Lewis Lumber Co., Collinsville; Terr,, Chiles, Myers Lumber Company, Frederick; Dave Graham, M & M Lumber Co., Tulsa; Joseph Hurd, Pixley Lumber Co., Claremore; John Jones, Everitt Lumber Co., Claremore; Phil Kennedy, Comanche Lumber Co., Lafion; Mark Myers, Myers Lumber Co., Frederick; Bobby Sharp, Love County Lumber Co., Marietta; Pete Windiate, Perkins Builders Supply, Perkins; Larry Wirtz, Wirtz Lumber Co., Guymon; and Mike Yates, Western Lumber and Hardware, Elk City.

SOUTHEASTERN SCENE

C,overtng the states of Alabama, Florlda. Georgla, Kentucky, loulstana, Mlssisslppl. North Carollna, South Carollna, Tenness@ and Wginia.

Louisiam Building Mdedd Deales Association is briefing its members on the way to obtain a Louisiana sales tax refund on bad debts.

Under state law, dealers are entitled to refunds of state sales taxes remitted on credit sales of movable property and sales of taxable services, when the debt amount becomes uncollectible and is first charged off on a federal income tax return. Refund claims which usually take one to two months after the request is received must be made within three years from the end of the year during which the federal income return is signed.

Information submitted should include the names of the debtors whose obligations were charged off, the uncollectible amounts, the non taxable portion of the debts written off, the taxable portion ofthe debt written off and the amount claimed. Information on the tar( period from which the tax originated, the dealer's assigned tax

number and a copy of the federal tax retum showing the bad debt charged off must be included.

Applications for refunds should be sub-' mitted to the Louisiana Dept. of Revenue and Taxation, P.O. Box Z)1, Baton Rouge, I-a.708,2l. Barbara Ro€ at that office is available to .mswer questions.

LBMDA was one of the sponsors for the Louisiana Economic Summit conducted by the Louisiana Association of Business and Industry at the Bellemont Hotel, Baton Rouge, on Nov. 12.

Kentucky Lumber & Building Mslerid Ihalers Association is recommending that its members attend Kentucky small business seminars. lnformation on voluntary compliance with the stue labor laws, employee rights and responsibilities as well as the services offered to business and industry by the Kentucky labor Cabinet will be covered in the sessions. Workers'compen-

sdion laws, Kentucky's occupationa safety an$ hcahh program and anplolmcat standards and mediation procedurc also will be discusscd.

Dces and loc*ions include Dec. 12, Conmuity C-ollcge, Som€rset; Dec. 13, S.C. Pridrard Community C-enter, Elizabchtown; Doc. 17, Ramada Inn, Bowling Green; Dcc. lE, Holiday Inn Balhoom, Madircnville; Doc. 19, ErecNriitrc Inn, Owensboro; Dec. Z), Hihon Inn, Lcxington.

Builditrg

Metcrld

Ma$nl'sAso6.

ton of Georglr rnd Abbmr in coopcration with the Western Wood Producis As. s(riation, Amaican Plfrwood Association and Southern Forest Products Assocbtion is offering r€tail€rs an opportunity to sponsor wood product serninan for their building and rernodeling contractor custotDcrs. lnstructors from WWPA, APA and SFPA are provided to cover the basic skills and information needed by the contracron. Each pcrson anending a serninar reccirres a manual.

\fnginb Buildng Itlelcrhl Ascodrtloo is offering two correspondence courses for employees of its members.

An architecturd drafting course teach€s the student how to draw a three bcdrmm house plan including the basement plan, wall section, floor plan, elwations, $air and kitchen daail. The €stimating coursc

I(/D HEM.FIR STUDS

I(D LODGEPOLE PINE STUDS

2x4ond 2x6

Ituck and traller shlpment<>vans and plggWack avallable. shlpplng locatlon: Lenz Sldlng, or. Southern Paclflc ancl Burllngton Northern.

cAscADE STUDS, |N@RPIORATED, HC63, BOx 3oZ ChllOquln, q.97624 Gharles l(tchel, sales manager

teaches basic piece by piece building material takeoff.

Both courses contain l0 lessons. Satisfaction is guaranteed by the association.

Tennessee Building Material Association's general counsel Frank C. Gorell has been selected by Advantage Magazine of Tennessee as one of the top 25 attorneys in Nashville, according to Stan Owens, association executive vice president.

Gorell is a former state senator and lieutenant govemor as well as a member of the Tennessee Appellate Court Nominating Committee, the U.S. District Court Judicial Selection Committee and the American College of Trial Lawyers.

A graduate ofVanderbilt college and law school, he is a member of Bass, Berry & Sims.

Wood Products Week Awards

The more than 150 lumber related companies in Memphis, Tn., joined with the Lumbermen's Club of Memphis in emphasizing wood products and honoring industry members during the annual Wood Products Week observance.

Luther "Pup" Kerr Jr., Thompson-Kerr Lumber Co., was awarded the prestigious Wilson award for his achievements and efforts in behalf of the industry as well as participation in the Lumbermen's Club and community and civic affairs in Memphis. He is the l9th recipient of the award which was established in 1966 in honor of J.S. P. Wilson who devoted 62 years to the wood products industry. The presentation wasmade at the Logger's Breakfast, the traditional kick-off to Wood Products Week.

"Mary" Virginia Tully, daughter of John Tully, Anderson-Tully Lumber Co., and Mrs. Tully, was selected

as Lumber's Lady Fair. She reigned over Wood Products Week, Oct. 27-Nov. 2, and will represent the lumber industry as an ambassador of goodwill throughout the coming year.

Sylvan awards presented annually to recognized builders and architects who have used wood in the highest standards of excellence were received by Brad Rainey Construction Co., Perkins Personalized Homes, Frank Ulhorn Garden Homes, Lewis Metts Construction Co., Allenby Green Condominiums, Henry Halle Construction Co., Metcalf Crump, Taylor and Crump Architects, Inc., Frank McGary and James H. Lindy, Lindy & Associates.

SEASON'S GREETINGS

HAPPY HOLIDAYS

"Mary" Virginia Tully

Gordy Martin Gary Malfalti Bob Haas John Blatchford Mike Mosby

OPERANNG OPPORTUNITIES

WALLY LYNCH

Builders Express, Inc.

11550 Plano Rd.

Daf las, Tx' 75243 of the public especially by pard announcement."

ANY COMPANIES spend money on advertising and point to their operating statements as proof positive. More often than not, the expenditures prove to be accounting entries lumped into advertising. A look at the books reveals outlays for entertainment, travel, sponsoring a Little League baseball tearn, etc., but nothing for advertising. The word, which has become a catchall for all kinds of expenses, needs to be taken from the accountant and returned to the merchant.

The American Marketing Association defines advertising as: "Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor."

A dictionary defines advertising as: "The action of calling something to the attention

Another source says advertising is: "A paid presentation of the merits of products or ideas of commercial significance to a mass audience by an identihed sponsor via such media ars newspapers, television, radio, magazines, billboards and direct mail."

Within these three statements we can identify meanings applicable to any overview of advertising, but as generalities, they won't apply specifically in each and every instance. For our purposes, we want to view advertising as the one who sells prducts to the final user doesas a retailer.

The realities of advertising begin with establishing a one-way communication system to the inhabitants of your trading area. Granted it can be very sophisticated and expensive, but fundamentally advertising is purely and simply one-way com-

munication between rller and buyer.

If asked to write a letter to a customer or to several customers, few executives would have any res€rvations and would do it without a second thought. Other kinds of one-way communication are tape recording, either audio or video, pictures and paintings.

In advertising parlance, the letter is classified as print media, as is a brochure or statement stuffer. The tape recording translates into radio when audio and television when video. Pictures and paintings communicate as advertising in newspapers, magazines, billboards, direct mail and catalogs.

The second reality of advertising is that one-way communication is substantially more difficult to use effectively than personal selling. Whenever there is give and take in communication, its chance of imparting the correct message increases drastically. Hence, one-way communication s€rves to bring the customer into the place of business so that the externally begun dialogue can be completed internally.

The third reality of advertising is that what is communicated initidly better be what it is said to be. This doesn't mean technically. It means that in the eyes of the customer the message must be discernibleas representd.

The fourth reality of advertising is that

Our reputation is sealed on euerl Gan of Gny Seal Faint.

We back our products with factory-trained personnel and a strong product warranty. lf you have a special application or problem, call our chemists on our toll-free number. We'll help however we can.

We work hard to protect our product's reputation so you don't have to worry about yours.

Gray Seal, the Paint Pro's Paint. Painting's iust too much work to use anything else.

For Inlormation contact: n.||rJ fr|n JGny M. 91ES$1t15. Imlqd. il nfq frrrfre Ralplt Shc9hc'd. {F721-7{e9. Orhfin City. 0l(. Roc ilooc. 501-ffi'16. UIt|r Rocr. An,.Ert l(rlr, 501-56$283. Ln[c Rod. AR, lm C.ry. 31;263-aam. wrdrib. Ks Pn .ah lr|r lik? Pbn. t{I}6:lffiall7, Louisville. KY

one must have something to say in a oneway communique. The author can't write a book without a story to tell. The merchant must give the customer a reason to get into an on site dialogue in his store.

The fifth reality is that advertising is the tip of an ice berg. It lets everyone know that it's there because a little bit shows above the water line. The foundation under water is not visible, but without it the visible part could not exist. The store is the business end of whatever the advertising claims and it had better be capable of coping with those attracted and their needs.

Like anything else that appe€us complicated, advertising can and should be broken down into its simplest parts. Certainly there is a creative segment to advertising that few managers know the "how" of doing. On the other hand few artists know the "why" of advertising. Combining the two talents is neither difficult nor expensive if managedeach basic part in its timeand place.

TUFT

(Continued from page 9)

changes in the tax code and a favorable affordability picture.

Renovation continues to be a growth sector in the construction market particularly in the northeast where premium location considerations favor rehab. This segment offers opportunity to all sectors of the building industry because of the wide variety of projects undertaken from residential work to major urban development tracts. Although a l59o gain is anticipated in this sector, a possible change in the tax code, the removal of the Investment Tax Credit, will delete a major underpin in the current renovation market and result in declines in activity from current levels.

The d-i-y market is also expected to remain strong. With 8090 of d-i-y projects undertaken within two years of a house purchase and sales of existing homes at a record level 3.4 million, the foundation has been set for a continuation of the l2slo annual gowth of the d-i-y market that has been occurring for the past decade.

Compared to the past year of stability, 1986 will be the apogee of the current construction cycle and the beginnings of decline. As the economy continues its slowdown, the construction industry will be challenged by declining conditions. To grow and prosper, the building industry must adapt to the changing needs of the market and align itself with the growing challenge presented by new technology that will transform the construction industry as we know it today.

Corning in January . . .

Our annual Southern Pine Specia! 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.

ADVERTISERS: act today to be sure your advertisement is included in this important special issue. Cet your message before our12,750 readers in 13 Southern states. Deadline for the January Southern Pine Special lssue is December 72. For information, write the address below or call (collect) (714) 852-1990.

Bill Porter, pres. and gen. mgr., Clarksville Wood Products, Inc., Clarksville, Ar., was named Arkansas "Lumber Dealer of the Year" by the Mid-America Lumbermens Association at the recent lumberfest convention in North Little Rock.

Rick Noel has been named hardware buyer for Scotty's, Inc., Winter Haven, Fl., according to Kevin Fitzgerald, v.p. of purchasing. Larry Jones is now plumbing buyer. David Tuttle is the new asst. dir. of visual merchandising, according to Dave Bryant, v.p. and sales promotions mgr.

Dennis Betts is the new divisional merchandise mgr. of lumber at Diamond Lumber, Carrollton, Tx.

Chet Chunn is now v.p. of human resources for Mr. HOW, Margate, Fl. Bob Salico is the new divisional merchandise mgr.; Frank Nelson, merchandise mgr. of lumber, and Michael Maged, senior buyer of plywood.

Martin Flanagan has been named controller at Aladdin Enterprise Products, Inc., Nashville, Tn.

Normsn Myers has been appointed product specialist for FLM Building Products, lnc., St. Petersburg, Fl.

R. Tom Joyner IlI, Joyner Lumber Co., Lakeland, Fl., has been elected a district director of the Florida Lumber and Building Material Dealers Association.

Carl Jones is the new district mgr. in the Louisville, Ky., area for Payless Cashways Inc., replacing Ken Broughlon, who is now district mgr. in Indianapolis, In.

Robert A. Anfanger, v.p. of home comfort products, White Consolidated lndustries, Columbus, Oh., has retired after 19 vears with the co.

Richard W. Gleason has joined Rubbermaid Specialty Products Inc., Statesville, N.C., as mgr., sales administration, according to Edwin C. Donddson, v.p., sales and marketing.

PERS NALS Service,

C.B. "Bud" Stevens, senior v.p., Kirby Forest Industries, Inc., Silsbee, Tx., is now chairman of the board of the American Plywood Association. Hsl Airington, Georgia-Pacific Corp., Atlanta, Ga.; John Gdloway, Hood Industries, Inc., Beaumont, Ms.; Joc Srmph, Temple-Eastex Inc., Diboll, Tx., and Bill Windhrm, Union Camp Corp, Chapman, Al., are board members.

Sanford R. Thompson has been appointed pres. of Canadia_n Millwork, lnc., Freeport, Tx., replacing Merk Marquerdt, who has resigned. Peul McXry is now v.p. of sales and fim Rogers is plant mgr.

Phil Jeriel, Handy Andy Sentry Hardware, Hazelhurst, Ga., won a trip to Bermuda as grand pnze at the recent General Hardware Sentry dealer market, Atlanta.

Lawson Hetbewey has joined the sales staff at McCoy Lumber, Greensboro, N.C.

Benjemin E. Crim has been appointed plant mgr. of the Temple-Eastex Inc. timber converting facility to be built in the Silsbee/Evadale, Tx., area, according to Jrcl C. Swecncy, v.p. of operations.

Williem M. Dely has been promotd to mgr. of group sales for Dutch Boy Group, Cleveland, Oh., in Atlanta, Ga., and the southeast.

Everytime a customer places an order with Elder Wood Preserving he is assured of receiving these three committments.

At Elder Wood Preserving we are dedicated to suPPlYing our customers with the highest Quality products available, whether it be dimension lumber, timbers, decking or fencing materials. Our AWPB grading system is another example of our committment to Service.

Each piece is hand inspected and only then is it given our seal of approval.

A Dependable delivery date on your order is something Elder Wood Preserving takes pride in. Unlike other plants in the Sunbelt area, we welcome

partial & route loads. Give us a call for your next order because we treat our customers and our lumber the same way-right! Dial 1-80G551€O46 or 1 -80G622€655 (Louisiana In-Bound) & ask for Joe or Mike.

Pierre Gauthier, Cottonport Building Supply, Cottonport, La., has been eiectcd pres. ol the Central Louisiana Building Supplicrs Association. Chip Norman, Slagle-Johnson Lunrbcr Inc., Monroc, La., is ttow prcs. of the Northeast [-ouisiana Building Supplicrs Association.

Ken Logue is nou national sales mgr. o1' retail account\ for Varifornt. Kearncl , lr,1s.

l)avid Musalo has been appoirttcd senior r'.p./gen. nrgr. at Babcock Iluildirtg Suppli, \lelbournc, Fl. Mike Cinciolto is the ne* rcgional rnerchandising and sales dir.; Lee Hester, district mgr., personnel and lraining. ancl .f esse llillman. a\\t. nlgf .,\1 tllc Indian Harbor Bcach, Fl., storc, Hold Roecker is Itorr c()nlractorcoorclinator and [-dward Verslgard is a\\t . lngr.

Ronald A. Pink is tlrc rtcrl' ntanagin-u dircctor al Scntrl Hardri are ('o. , Cle"eland. Olt.. succcccling Richard A. Bran( rrho letired alicr ll years.

\olan I). Archibald has bccrt rtanrecl prcs., c.o.o. :rnd director o1' Illae k & l)ccker Corp.. Torrson. \ld.

A. \'ernon Richmond is tltc rterv pres. ot W.\{. tsarr & Co., lnc.. \lcnrphi:, I'n. l.ddie Z. Ilunt. \\'hcat Luntbcr Co., t)allas. lr.. and Philip A. (ircks, Delta \Iilirvork, Orlando, Fl., are both nrcnr bers ol the Suprenrc Nitrc ol Hoct Htro Internal ionai.

James R. Lail is the ne\\' pres. o1' Vermont American Tool, Co., Lincolnton, N.C'.

Jerry H. Godwin is non r.p. and gcn. mgr. ol' the Cooper Groul'r, R:rlcigh, N.C.

Harrl H. Carter is now pres. ot'Henclcrson & Baird Hard*are Clo., a dir. ot' South States, Inc., Shrevcport, La., accordin,e to Lnuie R. Davis, chairnran, and A.Il. Wilson, r'icc chairmiur, South States. Lola \\'. Jones has becn named sec.; (irorgc H. Smith, v.p.nrerchandising; Slanton Horne, r.p.administration; Jamie Shackelford Bledsoe, trcas.

Charles White, Pete Hastert and Beverl) Mayeaux-Brown are new tradcrs at the Klumb Lurnbcr Co. ottrcc in Jackson, \{s.

Charles (iranlland is llre neri r.p. of' Gre at Sout hcrn Plr r ood ('cdar Spring:. Ca

\lilliam I."Uill" Morro* has joined N{anr illc I;orcsl proclucts ( orp., \\'cst \lonroc. La.. it' r.p. and gert. rngr. ol tirc ri ood l)roducls/l()rest resorlrccs drr. ., according to Harrt W. Sherman. pres

Jonathan Legg has joined sales at the ITT Ra1'onier office in Bunnell, Fl. Joe Cone is new at the Banler', Ga., salcs o fficc.

Mike Russcll has left Durant [-unrber Co., Durant, Ok., to join the local policc lorce.

Stanley S. Dennison, chairman of the Coalition for Fair Lumber lmports and executive management consultant to Georgia-Pacific where he was excc. v.p. ol'building products for Z years, has been appointed to PRIDE, the National Parents' Resource Institute tor Drug Education, Inc.

Leonard Moses is now purchasing and commodity' sa.les mgr. for Cameron Wholesale, Waco, Tx.

Bob Grady is the new national accounts salcs mgr. at the building materials div. of GAF Corp.

Greg Cantrell has been named gen. mgr. oi Stringl'ellow Lurnber Co.'s Associatcd Forest N{atcrials dir'., Hodges, AI., according to Don Fisher, prcs.

Ral Bynum has joined Norman Builders Suppl-v Co., Norman, Ok., a.s mgr.

Buddt Haile is ncu to sales at Scholl Forest Products, Houston, Tx., according to Gary Knesek, the ncu mgr.

Buford \\'hite, pres., Buford White Lumber Co., Shawnee, Ok., and lke Bennetl, v.p. and co-chairrnan ot' the board of Public Suppll Co., Oklahonra Citl', Ok., were invited to participate in Macklanburg-Duncan Co.'s third annual executive golf classic at Oak Trcc Golt'Club, Oklahorna City.

llick Sharr llr: bccri tlutslerrccl l()lhetran\l-roltalion clept . itl I ILUrgur Fttttgrrs l oresl I)r rrclrrct\, ( linrir.\, Nr., rcpttrl ()\\ nef\ [lugh \lrrngus ltrrd Freddr f rrngrrs.

NEW P DUCTS

and selected soles oids

compact quartz version with magnetic back, the single chime or deluxe long ring signal. All are one-hour timers with one-minute intervals marked on easy+o-read dials.

For food processor,/microwave cooking, a timer graduated in fivesecond intervals up to three minutes with a chime signal is available.

FREE READER SERVTCE

Convenience Kitchen

Self<ontained compact kitchens which combine range, refrigerator and sink into one unit are new from Dayton-Walther Corp.

Model 30CK features two cooking elements, five cu. ft. of refrigeration space and a freezer compartment that is 15 " wide, 5 " high and 12 " deep.

The full height of the refrigerator door has shelves for food storage including a molded egg rack. Cooking elements and reflector bowls on the stove are removable for fast, easy cleaning. Sinks are 6" deep stainlesssteel. The counter top and splash plate are also made of stainless steel.

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

Please mention issue date and page number so we can process your request faster! Many thanksl

FirstAid ForRools

A high strength flashing cement that can be easily apptied to roofs in any weather is new from Garon Products. Clas-Patch makes permanent emergency repairs on damp or dry, hot or cold surfaces. The heavy-bodied, glass fibered cement adheres to any surface, including asphalt, composition, concrete and metal, and can be applied in any temperature from 0 to 17n".

It reportedly won't harden or crack in cold weather and won't sag or run in hot weather.

TopOlTheLine

A chimney cap product line for use on masonry chimneys has been intro, ducrd by Leslie-Locke.

HaveTheTime?

Handy timing devices for use around kitchens, workshops, darkrooms, outdoors or dozen of other places are available from Robertshaw. There are three models: the new

Spray On Command

A spray faucet with handy pushbutton control on the spout is new from Delta Faucet Co.

The control transforms the faucet operation from a standard aerated flow to a convenient spray. A 5 ft. retractable hose is housed within the spout to eliminate the need for a separate spray unit.

The steel chimney cap hood features single-piece construction to eliminate rivets and seams which can collect moisture and cause rusting. A wire mesh spark arrestor provides 8790 free tueir to increase drafting and reduce clogging, soot and creosote build-up.

The cap is installed with a rrewdriver and won't fracture chimney duct tile or blow off in high winds. Seven models are available.

Turn The Pane

A new window fitting from Denmark enables the window to be turned horizontally for cleaning of the outside pane.

PN Top-Swing is made of anodized aluminum profiles, which together with nylon slide shoes make the fitting run smoothly. The heavy supporting arms are made of steel

The fitting has an automatic child safety catch, preventing the window from being opened more than 4 in. When the window is fully opened, the catch acts as a safeguard when the pane is being cleaned.

Eleven standard sizes are available from A/S Peder Nielsen "Pedershaab."

Fireplace On The Move

American Hearthland's new fireplace produces real flames and warmth, yet it generates no smoke, no fumes and no odor.

The Ameriflame fireplace, which burns a gelled alcohol mixture which emits only water vapor and harmless carbon dioxide, is totally portable,

requiring no flue or vent of any kind.

Double wall construction provides safety, yet the fireplace is lightweight enough to be easily moved. It is offered in a wide range of cabinetry or with a masonry front. The unit also can also be installed in existing builtin fireplaces.

Dramatic Outdoor Lighting

Intermatic's Malibu floodlight systems can produce hundreds of decorative lighting effects, such as lighting walls, fences, foliage or the wide areas of a pool or patio. A variety of different colored lenses are included.

The lights feature an energy-efficient, sonic-sealed halogen lamp which is said to provide more light per watt of power. They require only a 12 volt current so they are shockless and reportedly safe to use around children or pets.

The floodlights are available in six or twelve light systems, including 100 ft. of low voltage cable, stakes and power pack.

Down The Drain

A new air compressor-powered drain cleaner from Campbell Hausfeld creates a pulsating, shockwave action to break up and propel clogs away.

Reportedly there is no danger of bursting pipes because the drain cleaner does not pressurize the pipes.

The trigger-action gun comes with a toilet fitting, four rubber inserts to fit any size drain, and a splashback shield to keep the user dry. It works with portable air compressors and commercial units of % horsepower or more.

lce Cream Colors

Six new fashionable colors have been added to the Lucite line of premixed interior latex paints manufactured by Olympic Homecare Products.

SoftShades reflect the consumer trend towards pastel colors and grey, neutral tones.

All27 colors available are made of the company's exclusive 10090 acrylic formula.

MANUFACTURERS AI{D TREATERS OF QUALITY SOUTIIERI{ PI}IE TREATMENTS AVAILABLE .25. 30. .40 AND oBI.coN

Bullding Producls Dlgest Siding With Steel

A new steel siding has been introduced by Alumark Corp.

Coated with a PVC finish and carrying a 50 year warranty, it is designed to withstand the harshest elements and still provide the beauty of naturallooking wood-grain texture.

The thick vinyl finish is baked onto a series of prefinishes covering the underlying zinc-coated steel. Said to be free of the problems of aging, moisture build-up and peeling paint, it is available in nine colors.

CaulkOne Up

A rubberized acrylic base wet or dry caulk with a secret ingfedient to create a strong gnp to wet wood is new from Macklanburg-Duncan.

It is said to have a super adhesion power and increased flexibility, enabling it to span extra large gaps.

Mildew proof, paintable within 30 minutes, cleanable with water, it can also be used on aluminum, glass, steel, concrete and brick.

Electronic Solar Clock

An electronic astronomic time switch that is said to actually track sunset and sunrise times on a yearly schedule without using a photocell is new from Intermatic.

The switches are said to help conserve energy by accurately turning lighting loads on at sunset and off at sunrise on a seasonal basis.

Additional programming flexibility is provided by a sevenday, to-theminute, timing control which is reportedly programmable to ensure that lighting loads are off at pre-selected

times during the night. A patented entry system reportedly provides separate pushbuttons for entering day of the week, hours and minutes.

All data entered into the program is displayed on an LED display, which also serves as a 24-hour clock. A battery backup system is said to protect the program from memory loss during power outages for more than 24 hours.

Simply Shims

Labor-saving shims from Grove Products, Inc., are reportedly ideal for alignment and leveling tasks involving installation of windows and doors.

Now offered in a 2-5/ 16" x 3 " size as well asl/2" x2" and l-l/2" x3-l/2' sizes, the U-shaped plastic shims come in three colorcoded thicknesses: l,/16 in., blue; l,/8 in., red; and l/4 in., black.

Made of high impact polystyrene and polypropylene, the shims are said to be resistant to corrosion, rotting, and staining. According to independent laboratory tests, they can typically withstand l0 tons of compressive force.

MagneticVacuum

A flat shaped magnetic sweeper designed to hang underneath and out of the way on utility vehicles used in yards is new from Dings Magnetic.

Yard Magnet can protect tires without interfering with normal operations because it can hang from any available location on forklifts, trucks, and other yard vehicles.

A solid, all welded design, built to operate at I " to 2 " clearance, it is available in five widths from 3' to 7' . Its magnetic power is covered by a lifetime warranty.

More On Your Forks

A new forklift leveling support from Hines Equipment Co. attaches to the forklift truck to help safely lift multiple sheets of drywall, plywood, pipes and other producls, especially in wide loads.

Forkmate reportedly can reduce the cost of breakage by a minimum of $2(X) per month. It also saves time loading and unloading material.

Its heavy duty construction features adjustable forks with locks and can load up to 3,flX) lbs. The OSHA yellow-colored accessory has a shipping weight of l50lbs.

DUTE GIIY

MANUFACTURERS OF LUMBER

Ponderosa Pine / Douglas Fir

White Fir / Engelmann Spruce

Southern Yellow Pine / Aspen

PATTERNS

Channel Rustic and other WWPA

Standard Patterns

our specialty

WHOLESALERS OF LUMBER

Cedar / Hemlock Fir / Larch

Floor Finishing Line

New floor enamels from Shenvin-Williams provide a hard, durable low luster finish on floon, steps, porches, patios and fxtures of the home.

Polyurethane floor enamel, used for interior and exterior concrete, wood and metal, on paintd and unpainted surfaces, provides a full gloss durable frnish. It is resistant to abrasion, repeated washing and scmbbing, sun exposure and other climatic conditions.

Acrylic latex floor enamel features low odor, rapid drying properties and excellent application and penetration characteristics.

Ready to use right out of the can, Famowood applies like putty-sticks like glue; dries quickly; won't shrink; takes spirit stains, a'nd will not gum up sander. Waterproof and -

Upbeat attitude will win

By H. P. (Hank) Sandstrom Vice President and General Manager Simpson Redwood Company

flu* REDwooD operations

Yare heading into what appqrs to be a down-tick 1986 market with a very upbeat attitude.

As reported earlier, our company is investing$13million to upgrade its Korbel sawmill into one of the most efficient and productive in the industry. This, in addition to $15.7 million already spent at Korbel since 1979, represents a lot of management confidence in the future of our redwood part of the North American lumber industry.

And that industry has its problems in the marketplace where 1986 looks almost like a rerun of 1985. Housing starts for 1985 are now projected at an annualized 1.7 million. For 1986 they are projected at 1.65 million with a slow first half and an upsurge in the

second.

Not too many years ago that many starts was considered a pretty fair market for industry. That's not so anymore due to dramatic increase in capacity and equally dramatic shifts in where the lumber is coming from.

In 1970 U.S. and Canadian mills produced 38.343 billion board feet of lumber. In 1984 that volume reached 52.742 billion board feet with much of the production coming on stream

Story at a Glance

Down.tick market...rerun of '85...supply outstrips market ...Canadian lumber will remain strong...aggressive, crealive marketing backed by eflicient, cost€ffective manufacturing is the answer.

during the housing heydays of the late 1970s.

Today, supply capacity significantly outstrips market demand.

U.S. lumber producers have felt a further impact fromtheshift in supply sources. Canadian lumber which shared 30.7s/o of the North American production during a 1970-1974 five year period jumped to 40.30/o during a similar period ending in 1984.

Despite these factors the outlook is not all that gloomy for those willing to work for it and our marketing team looks to the future with confidence.

The answer, they say, lies in aggressive, creative programs to recapture some of the markets lost to substitute products, treated pine decking and importsall backed by an efficient and cost-effective manufacturing system.

That's the name of the game.

He who produces the best product at the least cost will take the winner's cup.

SFPA meeting emphasizes quality commitment

AnErvewED resolve to im- Iprove the quality of southern pine lumber was affirmed by members of the Southern Forest Products Association (SFPA) at their Tlst annual meeting, held on Hilton Head Island, s.c.

At the same time, SFPA members called for manufacture of southern pine lumber that has greater consumer appeal, with emphasis on appearance and meeting the needs of the end user.

Other key topics discussed were Canadian lumber imports and proposed repeal of timber tax incentives. A long-range plan for government affairs was approved, and new officers and directors were elected.

"Teamwork for Tomorrow" was the theme. Keynote speaker Bud Wilkinson, former head football coach and athletic director at the

University of Oklahoma, used anecdotes from his legendary coaching career to help explain how teamwork is developed.

A videotape report on SFPA's program results and plans for tomorrow was shown to kick off the general session. In a welcome address, SFPA chairman of the board John E. Stevens said that "nowhere is teamwork more important than in the marketing area." He said the association's marketing progr:rm "is sound in all respects." But he added that "our marketing efforts will be effective only if we achieve the necessary improvements in southern pine lumber quality."

"We must offer the consumer more choices of southern pine products if we are to stay a major player in this arena," Stevens said. "Simply to con-

tinue making only the same structural products that are designed for the new residential market will not give us the penetration we need in this highly competitive consumer market. "

"I don't believe we should change our structural grades or dimensions," commented Stevens. "We should leave these products alone. We must develop a new, complete line of wood products with different nomenclature that have consumer orientation and consumer appeal."

As a sequel to a "what customers are saying about southern pine lumber qudity" panel discussion at the June midyear meeting in Atlanta, a Panel discussed what southern pine lumber producers are doing to imProve quality.

Panelists were William B. N4gle Jr., Georgia-Pacific Corp.; Gene Parker, Westvaco Development Corp. ; Jos€ph Sample, Temple-Eastex Inc.; and John C. Shealy, Willamette lndustries Inc. The moderator was Drrain Cless, Weyerhaeuser Co., chairman of SFPA's marketing committee.

Cless prefaced the panel discussion by noting that quality "is not just satisfying the minimum requirements of the white and treated Cradins rules." He said the white gading rules were written to produce a grade of lumber for the framing market of the '60s and early '70s. But treated and engineered systems markets require lumber that is straighter, has less wane, smaller and fewer knots, and more accurately assigrred structural values.

"In other words," Cless said, "we havegone from acommodity framing market to specidty markets which require good appearance and accurate strength assignments. "

Each panelist traced current quality control approaches at their respective companies, making these points:

o Quality must be a consisient factor. After finding out what a customa wants, "sell him the same thittg today that he liked yesterday."

o It takes people to get these results; you can't get it with machines."

. Target production for l09o on

LEADERS IOT SFPA: J. Carl Jessuo Jr., Stevens. William R.

(left to right top photo) Dwight Harrigan, J.E. Ganser Jr. 0uality panel

moderator (lower photo) Dwain Cless, panelists Joe Sample, John C. Shealy, Gene hrker and William B. Nagle Jr.

grade, not 9590. Let the 9590 figure be used, as intended, for subjective differences in grading assessment.

o Reduce intermediate wane, the focus of most of the quality criticism.

oGet out and talk to framers and builders. Some of the younger ones have never used southern pine and have a negative image of the species that must be erased.

o Produce lumber that the customer needs rather than lumber that is easv to make.

Story at a Glance

Need for products with consumerappoal emphasized... producer's quality report... speakers develop teamwork theme...Expo'87

A luncheon address by Senator Dale L. Bumpers (D-Ar.) addressed a wide range of issues, but zeroed in on the threat of losing timber capital gains tax treatment and the peril of mounting Canadian lumber imports. "I'm on your team on these issues," Bumpers said.

On the subject of Canadian lumber imports, Bumpers said it was not the value of the U.S. dollar that was giving our northern neighbor a trade advantage, but rather government subsidies of Canadian timber.

Bumpers noted that he is a cosponsor of both the Gibbons bill, which would redefine "subsidy" within U.S. trade law, and the McClure bill, which would limit the amount of imported Canadian lumber to historic market shares.

At the meeting of the Board of Drectors, a proposed long-range plan for the association's government affairs program was unanimously approved. A major thrust of the plan is to continue efforts to influence legislation and regulations at the federal level, and to expand to the state level in the south.

On other actions taken, the board approved changing Expo '87 to June 18, 19 and 20.

Dwight Harrigan, president and owner of Harrigan Lumber Co., Monroeville, Al., and executive vice president and owner of Scotch Lumber Co., Fulton, Al., was elected

chairman of the board. His father, W.D. Harrigan, served as president of the Southern Pine Association, the forerunner of SFPA, in 1964-65.

J. E. Stevens, president, Kirby Forest Industries, Houston, Tx., became immediate past chairman. J. Carl Jessup Jr., vice president, Weyerhaeuser Co., New Bern, N.C., was elected vice chairman; Harold C. Maxwell, group vice president, building products division, TempleEastex, Inc., Diboll, Tx., treasurer; William R. Ganser Jr., president, and Lionel J. Landry, secretary, were reelected.

Newly-elected district directors are John Albert, Union Camp Corp., Savannah, Ga.; T.H. O'Melia Jr., Scotch Lumber Co., Fulton, Al.; Gor-

don McKay, Boise Cascade Corp., Florien, La., and Harry Williams, Williams Forest Products Corp., Cleveland, Tx. Directors-atJarge are Don Hoffman, International Paper Co., Dallas, Tx.; Ronald Paul, Louisiana-Pacific Corp, Conroe, Tx. ; John Shealy, Willamette Industries, Inc., Ruston, La.; Richard Carlisle, MacMillan Bloedel, Inc., Pine Hill, Al.; William H. Stimpson, Gulf Lumber Co., Mobile, Al.; and J. M. Tolleson Jr., Tolleson Lumber Co., Perry, Ga.

Affiliate members elected to the executive committee are H. M. Lupold, Holly Hill Forest Industries, Inc., Holly Hill, S.C., and Carlton Whittle, Structural Wood Systems, Greenville, Al.

Redwood, Southern Yellow Pine boards and dimension, timbers up to 32' long, Cypress boards and dimension, Hardwood Timbers, Douglas fir finish

Timber Products Inspection, lnc.

NATIONAL AND INTERNATIONAL INSPECTION AND QUALITY CONTROL SER. VICES FOR ALL WOOD PRODUCTS, AND ALL SPECIES, INCLUDING GRADEMANKING OF LUMBER UNDER THE ALSC PROGRAM, QUALITY MANXING OF TREATED LUIIBER I'NDER THE AWPB PROGRAM, AND QUAUTY CONIROL/. QUALTTY UARKING PROGRAMS FOR FIRE RETARDANT TREATED WooD,TRUSSES, AND BUTLDING LOGS. SERVTCES TNCUTDE TRATNING, QUALTTY MONIIORING, CERTIFICATION, SAMPI.JNG, REINSPECTION, SPECIFICATION WRITING AND/OR CLARIFICATION AND CONSULTATION ON LUMBER (TnEATED/UNTBEATED), TnUSSES, PLYWOOD, pOt"ES, CROSS TIES, FINGER. JOIM, I.AITIINATED STOCK, AND BT,TTDING LOGS.

dates change

...Dwlght Harrigan elected chalrman.

U.S. WATS 1.(800) 257.6039 La. WATS 1{800) 2314278 Local 1{318) 942-1508

San Antonio Retailer Expands

Guadalupe Lumber Co.. considered to be the largest independent home center in San Antonio. Tr., has entered the multi-store strata after 53 ) ears.

The ne* location oftrcially opened at -16,5.1 Rigsbv in southeastern San Antonio during the tlrst *eek of October. Renor ation of the eristing building and Iumber sheds on the propert)'prorided 16,000 sq. ft. of retail space on an almosl three acre site. Ample off-street parking is coupled u ith the convenience of a drir ethrough lumber and hear'l material 1 ard.

"The first three dals of our grand opening sale far erceeded our sales erpectalions." \lark Grothues. president of Guadalupe Lumber, said. Promotion of the openin_s rras done *ith direct nrail catalogs, ne\\spaper ads and point ol sale material.

"This is nrore of a ser\e yourself operation a\ iompared to our more departmentalized main store," Grothues erplained. The original location is larger *ith -s3.000 .q. it. oi retail \pacc on 3 sf\ €D acre complcr oi building material storage. This older location is on South Zarzamora Street in San Antonio.

Robert Barnes is manager of the nerr location uhich has l5 emplol'ees. Crothues i: third generation managcment of the prir atelv held Guadalupe Lumber Co. Phil Grothues Sr. i: chairman oi the board.

The t'amil1 began in business in groceries and general merchandise in 1933 and made a transition into lunrber after the depression. Sons of the founder and the grandchildren hare independentll begun successful buildin_e nraterial operations under other names in San Antonio and South Central Teras includine \tG Building \laterials.

Quick Quotes for 1986

A random sampling of ideas and opinions

"The consumer is overextended, but I still expect a pretty good Christmas. But, the fiscal first quarter may be very dull."

Walter Loeb Analyst Morgan Stanley

New York, N.Y.

& Co.

"The boom in commercial construction flatten out-but not stop-next year."

Real Estate Research

Chicago, Il.

"We're eternal optimists. But it will be until late December."

Robert Brewer Vice President, Finance K mart Corp.

Troy, Mi.

will finally a cliffhanger

"U.S. companies plan a l9o cut in capital spending next year. The stingier capital spending budgets are a sign that companies are thinking tough times in 1986."

McGraw Hill Economics

McGraw Hill Inc.

New York, N.Y.

"Retail sales will increase at a yearly rate of 3.590 next summer. Inflation will be 4.20/o in 1986, up from 3.690 this year."

The Conference Board Washington, D.C.

l/sate lifting t/reduce breakage

/quick set-up ,/adjustable forks with locks

,/stabilize load Fheavy duty steel construction

I/3OOO lb. capacity ,/save time loading & unloading

,/easy storage ,/use with 4000-6000 capacity forklift

lthe wide load champ

for these Exciting Issrres in Coming IWonths

Januar5r: Southern Pine Speclal Issue

Februar5z: Cedar Speclal Issue

llarch: Redwood Special Issue

Aprll: Pressure lir€ated Wood

Flay: Home Improvement Issue

June: Texas Special Issue featuring LAT'g l0Oth Annlversarlr

REPRINTS AVNII\BLE

I am writing to you about Mr. Gage McKinney's article beginning on page l0 of your October issue. On page 45, Mr. McKinney writes that NHLA allows a standard deviation of 590. This, in my opinion, is a misrepresentation of NHLA rules. The only percentage differential allowed by NHLA is covered by page lll, article 10, section 5. This 490 has to do with grade and not mqrsurement.

I thought Mr. McKinney might want to make a revision in his next article.

We are enclosing a proof of tally which we use and give to each of our customers on delivery. We are also enclosing a NHLA rule book.

Roland R. Johnson Senior Vice President Frank Porton Lumber Company PO. Box 1225, hrt Worth, Tx.76l0l

P.S. If Mr. McKinney revises the above paragraph, how much would 2,m reprints of his article cost us?

We are happy to make these corrections. The cost for 20n reprints is $210 plus shtpping and handling. If anyone elv would like reprints in any other quantity just call or write us for a price quototion.ed.

FOR THE RECORD

As a hardwood industry person, we certainly appreciate your continuing efforts to bring the story of our material to your reading audience. We know that hardwood is a "different breed of cats" and when dealing with our products there is no substi tute for knowledge of the wood itself or industry practices.

But several things concern me in reference to Gage McKinney's article "How to Get All the Hardwood You Pay For" which appeared in your October, 1985 issue. These involve both inaccuracies and attitude of the writer as revealed by the tone of the story.

The errors are e:$y to discuss and correct. First, a hardwood lumber nrle is 36" long, not "about 40. "" It is made this exact length not only to be handy in turning boards as one inspects them, but also so the inspector can use the rule easily to measure the length of the board or long cuttings.

Secondly, the statement ". the National Hardwood Lumber Association allows a standard deviation of 590" re-

quires conection and amplification. In the @ntext in which it is used, this statern€nt refers to the board foot tally of the lumber, i.e., the quantity received, and is incorrect. The current NHLA rule book (Page I I ISales Code, Article X, Sa. 5) $ates "Should this original official inspection result in not more than 490 deduaible difference in money value from the gross nmount of the invoice. . " This is vasly different from Mr. McKinney's statenr€nt in that the computation includes not only footage but also the grade of the lumber with appropriate pricing. This is important because the 490 difference in money valw is considered to be a rearcnable variation in the judgments of two competent inspoctors in grading the lumber with some boardsbe' ing upgraded and some downgraded in the second inspection. The footages measured by shipping and receiving inspecton should come very close to being identical, maybe + l9o, since measurement alone is largdy a mechanical process and thejudgrnent decisions necessary for grading are not involved.

My perception of the attitude of the writer is subjective and therefore is somewhat harder to deal with. I frankly feel that repeated use ofbeing "cheated" by the "shady dealers" puts a negative tone on the story that is entirely unwarranted and is not overcome by the disclaimers to the contrary at the beginning and end of the article. I woulld srtggest to you that the way to deal with someone who you think is cheating you is to buy your lumber from a reputable hrmand there are plenty of themrather than by trying to beat someone at his own game by measuring boards with a 4O" lumber rule and registering complains when you're more than 590 short in footage. I would further suggest that il would have been much more constructive to title the article "Unraveling Some Mysteries in Receiving Hardwood Lumber" and develop in a more positive fashion.

As indicated above, we know that our hardwood products and our business customs vary sub'stantially from the softwood industry with which many of your readers are involved. Many reputable hardwood frms would welcome the opportunity to better acquaint others with the world of hardwood.

This association counts as one of its major purposes the education of those inside and outside of our industry. We are not in a position to arbitrate claims, but we will be most happy to supply information when requested. Under certain circumstances, we might well be available to present prograns to industry groups. In short, we want to do everything reasonable to foster undentanding and to encourage the use ofhardwoods. Please call on us.

S. Carroll White Executive Manager National Hardwood Lumber Association Memphis, Tn.

Can we avoid recession?

By Alan M. Gayle Qrporate Economist United Virginia Bank

T"t CURRENT expansion that I began in November, 1982, has lasted three years. That is beginning to get old by historical standards.

Knowing the age of an economic upswing has never helped forecasters accurately predict the coming of the next downturn, but it would be a mistake to ignore or dismiss the signs of age as temporary aberrations.

1985 has been a difficult and confusing year for economists, because the economy weakened in the first half of the year, only to show renewed strength in the third quarter. The drop in interest rates helped to suppc:rt the housing industry during this time, but it failed to spark new life in this sector.

The primary rquon for this is that the consumer who has been the driving force for this expansion, has been dipping into savings and loading up on debt to maintain his living standard. This kept the economy from falling into a recession early in the year, but it took its toll. The personal savings rate is now at or near its alltime low, while the level of debt relative to income is at an all-time high. This suggests that the consumer is severely extended, and, ifthe past is any guide, the consumer will begin to pull back relatively soon.

Businesses have been very cautious during this recovery and have successfully held inventories in check. This tended to curtail growth in 1985, but this conservative approach could pre-

vent lay-offs should the economy weaken. The strength of the dollar has caused significant damage to our balance of payments position and cost the United States countless jobs. With some luck, the decline in the dollar since its first quarter peak should begin to improve the trade picture in the upcommg year.

The major question for 1986 is if the consumer stops borrowing to finance the expansion, can the loss be made up by either the business sector or by foreign trade? The answer is that it could help, but with consumption representing two-thirds of the economy, any uptick in business spending or exports will probably not offset a decline in personal consumption. Autos have already begun to lose ground following the end-of-year surge, and the housing sector is showing early signs of weakness. This pattern is likely to get worse before it gets any better.

The Congress, facing a slower economy and an election year, is not going to be anxious to either cut spending or raise taxes. As a result, we can look for the federal deficit to rise to perhaps $220 billion from $203 billion in fiscal vear '85.

Story at a Glance

One bright spot in the outlook is that interest rates could fall further as we enter 1986. The Federal Reserve has stated that domestic economic concerns have considerable influence on current monetary policy, and with good reason. The Fed knows that it cannot continue its anti-inflation policy politically if the economy is faltering. This may help the housing and auto industries by the middle of the year. For 1986, I look for real growth of about 2s/o or less on the average, with inflation inching up to the 4Vz-Svlo range due to the weaker dollar.

In sum, 1986 could be an exciting year, but not the kind of excitement we enjoy. Real growth should be disappointing, but inflation should remain low with interest rates falling to somewhat more palatable levels.

VEREEN

(Continued from page l9)

fastest way to cut expenses is to reduce payroll, or to hire more part-timers. Both conflict with the need of home centers to man their floors with qualified people, especially if there is any hope of building project sales, rather than promoted-item sales.

Recognizing this problem, Home Center Institute is embarking during 1986 on a new employee training prograrn that attacks the basic need of developing selling skills.

One may still need to control payroll exp€nses, but the best way to do that is not by cutting back on people but by making people more productive. Retailers need to do something to teach the basics of customer relations and selling skills to their employees.

One may have to fight for customer business on price. The market may leave no choice. But qualified employee service is what will build repeat (and addon) business.

guALrTY RED\MOOD FENCE BOARDS

Manufacturers of fence boards, posts and rails, decldng and specialty items. Our sawmill and reman facilities provide us with versatility in meeting your customers' needs.

NEWLITERATURE

Looking Ahead To 1986

"Industry Statistical Review & Forecast" is $50 from American Architectural Manufacturers Association, 27fr) River Rd., Suite l18, Des Plaines, Il.6ml8.

Lead Ledger

Sheet lead as a roofing and flashing material is detailed in a free brochure from Lead Industries Association, 292 Madison Ave., New York, N.Y. lCDl7.

Patio & Tenace Doors

A catalog of patio and terrace doors is free from Marvin Windows, 8030 Cedar Ave. S. #228, Minneapolis, Mn.55420.

Work The Wood

"Woodworking Tools, Materials, Processes," a 634p. book with 15fi) illustrations, is $21.50 plus $2 postage from American Technical Publishers, 12235 S. Laramie Ave., Alsip, Il. 60658.

New Foam Sealant

A new silicone foam penetration sealant is described in a free guide from General Electric Co., Silicone Products Div., Waterford, N.Y. 12188.

Moulding & Millwod( Supplierc

The Wood Moulding & Millwork Producers Association's 1985 directory of products and services is $2.50 from WMMPA, P.O. Box 25278, Portland,Ot.n225.

Firc Retadant Troated Wood

Design values for ProTex fre retardant treated lumber are available free from Hoover Theated Wood Products, P.O. Box 746, Thomson, Ga. 30BZ or by calling l-8GTEC-WOOD.

Electdcal Box Inlormation

Free information on convertible circuit breaker loadcenters is available from Challenger Electrical Equipment C.orp., 508 Lapp Rd., Malvem, Pa. 19355.

FOR PROMPT SERVTCE

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

Cabinet Advice

"What You Should Know About Kitchens" is free from Excel Wood Products, One Excel Plaza, 1.a1"**0, N.J. G701.

On Line Lit

The falTwinter 1985 edition of the "Computer Power Buyen Guide" is $29.95 from Wellspring Enterprises, 9921 Carmel Mountain Rd., Suite 188, San Diqo,C-a,.921D.

Side With Vinyl

"What Homeowners Want To Know About Solid Vinyl Siding" is free from Vinyl Siding Institute, 355 lrxington Ave., N.Y., N.Y. lml7.

Window Installation

A l2-p. guide to window replacement is free from Caradco Crrp., D€pt. FTG, P.O. Box 306, Champaign, I1.61820.

Stbky Situations

"The Adhesive Answer Book" is free from H.B. Fuller C.o., 315 S. Hicks Rd., Palatine, Il. 6m67.

lnsulalion Accessodes

A fire-rated insulation products catalog is free from Manville S€rvice Cster, 16Ol 23rd St., flenver, C-o. 8(}216

Behind the

lroors

A 4-p. brochure on stile and rail wood doors is free from Minton Co., 599 W. Evelyn Ave., Mountain View, Ca. 94{X2.

Wood On The lnside

"Real Wood Interiors: A Design Workbook" is free from Western Wood Products Association, lS(X) Yeon BuiHing, Portland, Or.nn4.

Utt Trud( Tile GuHe

A lift truck tire unrrantyguidewallchart is free from Yale tvlaterials Hanaliag Corp., Dept. 513, P.O. Box lZli5, Philadelphia, Pa. 191(8.

Sand By Hand

A new packagd sandpaper calabg is free from Carborundum Abrasirc Co., P.O. Box 350, NiaSara Fdls, N.Y. 143(X.

Sahs Prcgnm On Tape

"Sales Pow€r," a nciw salcs prrogram of tape cassetrc and bookh, is Sl5 from H.E. Andenon Co., 3037 Kentwood Dr., Eugene, Or.9401.

Sothem Plne llnam Bolr

l2-p. idea book for outdoor proius is free from Southern Forest h,oducts Association, P.O. Box 52ffi, Nes Orleans, l'a.70l52.

S€e Thb FqGerb

Th€ l9E6 Wcstcrn Rd Cdar Lumbcr Association's "Where to Buy" guide is froe from WRCLA, l5(X) Ycon Buibing, Porthnd, &.YIXA.

Wood Macfilnery GuHe

The l9E6 Buf,er's Gui& & Diruqy of Wood Machinery Manufacturers of Am€dca is free from thc WMMA" lm Arch St., Philaddphia" Pa. l9l(B.

Mall Oder ltbw

A hoe 72p. calab with ovcr 5fiD ster dard shapes and sizcs ofuood windoyvs and patio doon is available from lr[arvin Wb dows, 8030 Cedar Ave. S., ,tr28, Minneapolis, Mn. 55420.

SALES PERSON: An Orange County, Ca. Andersen Window distributor is seeking goaloriented individuals with several years' experience in sales with Andersen Windows. Salary/commission/profit sharing/benefits. Send resume to Box 54 c/o Building Products Digest.

Twenty-five (25) words for $19. Each additional word 650. Phone number counts as one word. Address counts as six words. F.eadlines& centered copy ea. line: $5. Box numbers and special borders: $5 ea. Col. inch rate: $4O. Names of advertisers using a box number cannot be released. Address all replies to box number shown in ad in care of Building Produc'ts Digest, 4500 Campus Dr., Suite 4E0, Newpon Beach, Ca. 92ffi). Make checks payable to Cutlu Publishing, lnc. Mail oopy to above addrcs or call (714) 852-190. Deadline for copy is the l5th of the month. PAYMENT MUST ACCOMPA|IY COPY unless vou have established credit with us.

CREOSOTE and CCA posts, lumber, barn poles and piling, and other treated forest products. Baxley Creosoting Co., Inc., P.O. Box 458, Baxley, Ga. 31513; (912) 367M.

FLORIDA GULF COAST LUMBER COMPANY FOR SALE

MARION PRESSURE TREATING CO.

Creosoted fence posts, timbers, barn poles and piling. Truckloads only. Marion Pressure Treating Plant, P.O. Box 217, Marion, La.'11260. (318) 292-4511.

DECORAIM wood shelving for sale. Ideal for d-i-y customers. Easy to put up. looks good. Can be stained. To receive brochure send name, address and telephone number to Box 57 c/o Building Products Dgest REPRINTS of hardwood arricles from The Merchant Magazine. Excellent for reference or training. Domestic Hardwoods, $10; Southeast Asian Hardwoods, $5; South American Hardwoods, $4; all three, gl6. Send your check today including name and address to Hardwood Reprints c/o The Merchant Magazine, 4500 Campus Dr., suite 480, Newport Beach. Ca. 92660.

Profitable contractor/retail yard with $3.5 million minimum sales potential. Explosive growth area. P.O. Box 20974, Sarasota, Fl. 33583.

RETNL LI.JMBER YARI)

Retail lumber yard located in fast growing Georgia area. Well established business with sales volume over $6 million and still growing. Gross profit margin good. Rail spur in yard. Buy or lease real estate. Manager will stay. For details reply to Box 55 c/o Building Products Digest.

When sending in a chonge of address please include zip code on both old and new addresses and either the otd label or the inlbrmotion from it. Thanks!

WANTED: small home center located in central Florida area. Good financing. Write Box 52 c/o Building Products Dgest.

WANT to buy used computer with software suitable for lumber company. Ned nccounts receivable, payables, inventory, invoicing, etc. Send information to Box 56 c/o Building Products Dgest.

HARDWO0D men(1) C. F. Hopkins, Charlie Robinson, Ralph Elliot. (2) Shirley & $lalter Fields. (3) \tl/hlter Ralston, Lyman Shipley. (4) Rob Flon, Bob 0wens. (5) Bud Baker, Gerald Slavney, James Harff . (6) Mike King, Al Crownover, Wyatt Strong, Larry Cook. (7) Michael McKenzie, John 0sgood, Tom Escherich. (8) Fred Gill, Doug Hay. (9) Butch & Mari-

lyn Pope. (10) tllanda & Tom Flynn, Dorrie Bruder, Bob Conger. (11) Peter Haley, Sylvh & Wbmer Richen. (12) Harry Fedden, Starc Bushman, AlTrubin. (13) Howard Scott, Jerry Horner. (14) Bob Keiver, Warren Jimerson. (15) Vic Lindstrom, Mike Moscoe, Mike Ploghoft. (16) Daniel Bohannon, Diane & Larry Knox. (17) John Mullen, Charles Jordan. (18)

Dennis Snow, Cnig Kimail, flhyne Fnnk, thn Swet. n9) Gadon Srckow, &rd Mike lonis. (2ll) lGrl Schrrnrtrler, Ramsay Grant, John Crvich, llhtly At<irson, Gsoqe Cbiy. (A) Paul hndergast, Kim & John Euchanan. (?2) Rich Blinkhorn, Larry Holguin. (23) Tom McMillan, Larry Knox.

NHIA'S 88th annual

ESPONDING to the continued effect of foreign competition,the National Hardwood Lumber Association kicked off its opening session with an in-depth look at offshore markets.

It was one of a number of important issues NHLA addressed during its 88th annual convention, held in Los Angeles, Ca.; a first time for that city and only the third time the annual meeting has been held in the west.

In his opening talk, E.R. Thomas, Jr., NHI-A president, made a strong appeal for more promotional funds for the Hardwood Institute, part of NHL-A,. He noted that "promotion is virtually unheard of in our industry."

The first speaker, Dana G. Fitzpatrick, Fitzpatrick & Weller, reviewed the European market on a countryby-country basis, noting that Switzerland, Spain, Austria and Italy are growing markets for the U.S. He said that while current markets were down, the long term trend is up, the key being a stable American dollar.

Peter M. Ross, Ontario Hardwood Products, Ltd., observed that "our industry has become part of the global hardwood market." Ross said that the Pacific Rim countries were the "hottest areas" and that Japan and Taiwan were the strongest markets for American hardwood. Asia is a permanent growing market and one that will increasinglY continue to affect U.S. hardwood people.

Steve V. Losser, National Dimension Manufacturers Association, said the hardwood industry needs to be more marketing oriented and more consumer directed. In an excellent slide presentation, Losser illustrated how imports were gaining in importance and how marketing strategies must take this into effect. "Our customers are going overseas," he warned.

John V. Ward, National Forest Products Association, said that the American hardwood industry must go with the shift of the business to the Far East. "We can't fight it," he said, adding that "they have the labor, the products and the market."

He also noted the forming stePs being taken at the NHIA, meeting to create the Hardwood ExPort Trade Council to help promote greater use of American hardwood in international trade.

The following day, at the general session, new directors were elected to serve three year terms. TheY are: George "Bud" Baker, Baker Hard-

Story at a Glance

Ef f ecls of import/export changes discussed...some Rules changes...new directors elected...next year's meeting: Montreal, Canada.

wood Lumber Co., National City, Ca.; Wendell M. Cramer, W.M. Cramer Lumber Co., Hickory, N.C.; James R. Duncan, Monticello Hardwoods, Inc., Monticello, Ms.; Roman B. Oser,, Kimball International, Inc., Jasper, In.; Arthur H. Ploetze, Schaller Hardwood Lumber Co., Poplar Bluff, Mo.

The meeting, which was held at the Century Plaza Hotel, October 2l-23, also adopted some Rules changes affecting Philippine mahogany, "Clear Face" cutting grades of surfaced lumber and the standard grade of seconds. Association bYlaws were amended to increase the communication and education aspects of the NHLA as well as to accept custom kiln dryers and hardwood timberland owners to membership eligibility.

In other business it was agreed to increase inspection per diem fees for NHLA inspectors to $145, to increase the reimbursement for lumber handling charges in complaints or reinspection to $15 per thousand or actual cost, whichever is less, and tentatively approved acceptance of the Hardwood Research Council into the framework of the NHLA.

Attendance was nearlY l25O' making it the largest gathering of hardwood people in the world. Next year's meeting will be held at the Queen Elizabeth Hotel, Montreal, Quebec, Canada, October 20-22, 1986.

^Al .. Lrortuarres

Donald A. Campbell, retired executive vice president of the Kentucky Lumber and Building Material Dealers Association, died in Lebanon, Ky., on Oct.27.1985. He was 84.

From 1928 to 1955, he owned the Boner-Campbell Lumber Co. in Lebanon. In 1936 he served as president of the Kentucky Retail Lumber Dealers Association and was executive vice president at his death. He was also a director and from 1937 to 1938 president of the National Retail Lumber Dealers Association. Mr. Campbell was chairman of the Board of Review of the American Lumber Standards Committee in Washington, D.C., from 1950 to 1956. He was vice president of Marion National Bank in Lebanon for 20 years and mayor of the city from 1946to 1954.

Mr. Campbell is survived by a daughter, two sisters and three grandchildren.

Treated Wood Buye/s Info

The retailer is the key to the success of the voluntary Consumer Awareness Program for treated wood being instituted as part of the wood preservative settlement agreement with the Environmental Protection Agency.

Each person buying pressure treated wood must be given a Consumer Information Sheet (CIS) advising him to wash his hands after working with treated wood, wear a dust mask when sawing or machining such wood, wear goggles to protect eyes from flying particles when power sawing and to dispose of treated wood scraps by burial or normal trash collection rather than burning.

Treaters must attach a CIS to each bundle or batch of pressure treated

Lumber Dealer Failure Rate

Lumber retailers fail at the rate of .8890, according to the Small Business Administration which based its study on Dunn and Bradstreet data.

The national average for all industries is 72 failures per 10,000 businesses. Lumber wholesalers have a slightly higher average of 83 failures per 10,000.

Don Dixon, office manager of American Timber Products, Dallas, Tx., died after a heart attack in Shreveport, Ia., on Oct. 4, 1985. He was 56.

He was with the company 22 yeans of his 3Gyear career in the industry. A Hoo-Hoo member, he resided in Dallas.

Mr. Dixon is survived by his widow, Elonia, and five children.

William J. McFeeley, owner of McFeely's Hardwoods and Lumber, Lynchburg, Va., died Oct. 16 after injuries received in a forklift accident. He was 34.

A forest biometry graduate from Colorado State, he started his own business six years ago after leaving Hickson/McFeeley Lumber of Lynchburg.

Mr. McFeeley is survived by his widow, May Carter, two children and his parents.

Abraham Meltzer, founder, chairman and chief executive officer of Triangle Pacific Corp., Dallas, Tx., died on Sept. 16, 1985, after a long illness. He was 68.

After starting the company in 1943, he built it into one of the nation's largest manufacturers of building materials and kitchen cabinets. It now has manufacturing plants in California, New Hampshire, Tennessee and Texas.

Mr. Meltzer is survived by his widow, Florence, and four children.

wood leaving the plant plus attaching a CIS to each pressure treated wood sales invoice and provide adequate quantities of information sheets and signs or placards to wholesalers, retailers and other distributors.

In addition to distributing the CIS to each purchaser of treated wood, a distributor (wholesaler or retailer) must display the sheets at the sales counters and post signs in the sales area.

The program, which will go into effect immediately, will be evaluated in June. Pressure treated wood associations are urgtng dl those who produce, sell or promote treated wood products to make every effort to ensure the success of the program.

Producers of manufactured wood products such as plywood and particleboard have excellent records being among the l0 types of businesses least likely to fail. Sawmills are among those most likely to fail with only coal mining and miscellaneous small retailers being higher risks.

Utilrty Tautliner'" Saves{iayem Lumber SzsO awaek

"No more tarps, tarping cnews or overtime."

The Ajayem Lumber Company, founded in1944 and headquartered in Walden, NY mills and ships more than '100 million board feet of lumber up and down the Eastem seaboard and as far inland as Ohio. The fleet travels more than'1.6 million miles annually.

The Problem?

Tarping.

"Not only is tarping time-consumingl' explains Aaron Modansky, president of the family-owned company, "but that downtime translates into lost dollars. ln addition, tarping is dangerous. The driver has to climb up on the load, position the tarp and tie-downs, and in wet, icy weaiher, its hazardousl'

"We ship our own goodsl'says Modansky, "and our customers will not accept them if they are not clean, dry and free from mud and dirt. Again, this translates into lost dollars for our company if the load arrives weather-damagedi'

The Solution?

The Utility Tautliner". This revo-

lutionary trailer converts from a flatbed to a fully enclosed van in a matterof minutes. The unique loadbearing curtains slide open and shut, allowing lumberto be sideloaded fast and efficiently. Then the load-bearing, rip-stop, cross-linked, PVC-coated polyester curtains shut tight to keep the load as dry and clean as a conventional dry freight van.

"Our direct savings are 9150 a dayl' Modansky continues. "Tarps don't have to be replaced every four months, and a set of tarps costs about $750. In addition, there is no downtime due to accidents; insurance and workman's compensation are reduced; and there is no damage to productwhen it is loaded, even in the wettest weathel'

"l figure that the Utility Tauiliners" will pay lor themselves in one year and will reduce operating expenses 2Oo/o each year after thati'

The Results?

Ajayem Lumber now runs 29 Utility

Tautliners'. Modansky says it has changed their image in the markeplace. "Our custorners are so impressed by these new trailers that when they place an order, some of them now say, "lf you don't ship il in a Utility Tautiner, don't bother to 'send it!"

The Tautliner- by tXility. lt can be the answer to your problems too. Call 800-824-4514 formore information orforthe locatbn of the Utility dealer nearest you.