Transition seen in 87

By Joseph T. Theby, Jr. President National Building Materials Distributors Association

9 I 7 ift?Tl'"l:, :",.'l:

The continuation of reasonable (compared to other recent times) mortgage interest rates, minimal escalations in the cost of building materials, the fairly neutral impact of the federal tax law on single family housing, and a continuation of very little negative media input into the thought processes of prosPective new home builders and buYers should at least give us an opportunity for another decent year.

Building material distributors in general are beginning to understand and cope with the changes that have taken place in their marketplace. New entrants offer opportunities as well as threats. Distributors are finding that they are more and more

Story at a Glance

Building material distributors can expect another decent year. . biggest challenge to remain strong and profitable. education a maior concern and a priority.

included as an integral part of the national marketing of certain product lines and are serving customers yours that were recently perceived to be threats. As time goes on, theY will even figure out how to make money on lower margins apparently available in this type of business.

Keep your inventory and profit under control. We ship nationwide bY RAIL, TRUCK or PIG VAN... mixed to your specifications.

Our biggest challenge is not going to be how to remain an imPortant player in the marketing of building materials, but rather how to remain strong and profitable as an important player.

The National Building Materials Distributors Association, in the development of its strategic Plan, emphasized for its membership that education is the key word. The education of suppliers, customers and our own personnel is a major concern and will be a top priority of our association in the years to come. Our members must become more positively aware of their value in the marketing channel and be able to bring their suppliers and customers to this same awareness.

At the same time, we must educate ourselves in the area of productivity of people and assets. This is our key to the financial strength that we must maintain if we are to continue to reliably serve our markets, to invest in new product lines and new customers in the years to come.

We look forward to 1987 as a year of continuing transition and a settling in the marketplace.