Building Products Digest - December 1987

Page 38

Buildinq -- Products markets in 13 Southern states U.S. POSTAGE PAID LOS ANGELES, C./ PERMIT NO.3760: Addre$ Corrcction Requesacd atNl a r '3 -2rv .J '-a-lt A ffi s{ -.+'"* a. 7 #g,t dZ4/ict .O'MERRY CHRISTMAS from American International Forest Products

An exciting addition to this magazlne'J scdes of special issues will appear in Februrry' 19E8.

ADVERTISERS:

Highlighting cedar, it will cover a wldc rrngc of topics of interest to anyone involvedurith wood. We'll be talking about cedar's selling polntr, marketing possibilities and its growing role in the wood market . . . plus: how to buy it and how to promote cedar.

In addition, there will be case historiec and other success stories on how wholesalers and retailers can profit from cedar's growing market

Mahe sure you're not left out of this inportant iscuc. Call or write today to reserve space in our February Cedar Special lssue. The deadline for space resetwations is January 14, 19E8. To reserue space or for nore information iust call the telephone numbe shown below. acceptance.

T .-l fg uifll I 1988
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5796 Shelby Oaks DriveoSuite 5

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@
CALL US TODAY I€OO.PLY.WALL

Serving

13 Southern states

Publlsher David Cutlet

Edltor Juanita Lowet

Asslstrnl Edltor David Koenig

Contrlbutl4 Edltors

Dwighr Curran o Gage McKinney

Art Director Manha Emery

Strtr Artist Parie Petty

Clrolrtlon Alicc Nielsen

Building Products Digesl is published monthly at 450 Campus Dr.. SuiE 480, Neryport Beach, Ca. 92560, phone (714) 852-190, by Cutler Publishing. Inc.

ADVERTISING OFFICES

Advenising mtes upon request.

From all states east of the Rocky Mounuins: Conhcr Jean waggoner Gogerty, national sales manager. From Arizona, Nevada and Califomia: Contact David Cutlet. Both may bc reached at (714) 852-1990 or by wridng 450 Campus Dr., Suite 480, Newpon Beach. Ca. 926{0.

From Washington Stale, Oregon, Idaho, Wyoming. Montana. Urah, Colorado. Nonhem California and Canada: Conucr Carole Holm ar (206) 71+3173 or 21819 77th Place West. Edmonds. Wa. 98020.

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BUILDING PRODUCTS DIGEST is an indepetdenh'atned publiation fur hc reuil, xlalesle atd di*ibutiotr levls of dw hofuer attd hone cener nnrlets in 13 httlum smtes.

r"''"n*;l:[Y DECEMBER I 987 Editorial 6 News Briefs l6 Home Center Merchant 20 Texas Topics 22 Oklahoma Notes 22 Arkansas & Okla. 29 Southeastern Scen e 24 Operating Opportunities 25 Personals 26 New Products 28 Obituaries 38 Buslness Forecast Speclal lssue Home Center Director Bullish On D-i-y Market 8 G-P's Hahn Sees Year Of Big Growth Potential 9 SFPA President Thinks Diversion ls Necessary | O Hardware Mfrs. Chief Predicts Unpredictable l2 Tuft at Schlage Lock Looking For A Slowdown | 3 NWWDA's Shoemaker Hot On Repair & Remodeling | 4 Positioning ls Priority For NAWLA's Niebling l5 Random Thoughts On The Economy In Next Year 33 Distributors Ghange Show Style At Gonvention 34 CRA's Lanning Likes Product Promotion Theme 36 Forest Products VP Anticipates More Growth 37 Calendar I I Glassified 35 Advertisers Index 38 Building Prcducts Digest
Copyright @ 1987, Cutter Publishing, lnc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. Building Products Digest assumes no liability for materials furnished to it.
13
Morc than 20 y@rc inCedar& Rercuropd Gontainer and Piggfibac* loading Gapabilities
markets in
Southern states
"Teamworl< Stands Behtnd CedarPfo. Products " y,:?::1,i"'ro'zheime'r' Together, we are committed to the highest standards of quality, reliability and grade consistency. Our teamwork is the outcome of our confidence in each other's dedication to professional and personal excellence. Each of our more than 50O employees is proud of our market success. Thank you for sharing our pride. Corporate Offi ce' Stockton, Califiornia 2Og / 957'6360 O 1987 P&M CedarProducts, Inc. If you would like a copy of the CedarPro Team Series, please write or call... P&.Nl Cedar Products, Inc. Director of Markaing, P.O. Box 7349, Stockton, CA95207 2@/957-2802

markets in 13 Southem states

EDITORIAL

Ready for the worst Gase soenario?

I T'S been about two months since the New York I Stock Exchange had its Monday meltdown, losing 508 points in a single day. Since then we've read about 508 different explanations as to what happened, why and what will happen next. We get the distinct feeling that nobody really knows what's going on.

Given that situation, it seems prudent to do a little mental planning in the event a worst case scenario becomes the one that we have to deal with in real life.

While we are not necessarily forecasting that America is about to suffer another Great Depression like in the 1930s, that is not to say that we think it couldn't happen again. After all, who thought the stock market would drop 508 points in one day, losing half a trillion dollars in a single sickening slide? Today, many companies rightly pride themselves on surviving the recession of 198l-1982, running mean and lean since. But that slump was a comparative piece of cake alongside the hopelessly grim days

of the 1930s. In those days business didn't just slowdown, it virtually disappeared. Let one statistic suffice: In Detroit in 1926 construction was running at a $l8l million annual pace. After the bank collapse of 1933. construction fell to $4 million.

Coping with that kind of a crash was often impossible and businesses died by the hundreds ofthousands. Yet a few survived, somehow, to go on to what were to be the most prosperous times in U.S. history. The ways they did it were varied, ingenious, sometimes lucky, but always involved hard work and lots of it.

We've heard all the arguments as to how a replay of the 1930s can't happen. We don't buy it. We'll go along with the philosopher who said that those who ignore the lessons of history are condemned to repeat its mistakes.

It seems smarter to us to put in a little time preparing for something that supposedly will never happen again than to gamble on being unprepared.

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December 1987

Kelly ls Lumberman Of Year

George E. Kelly, Memphis, Tn., was named Lumberman of the Year by the Lumbermen's Club of Memphis, during their annual Wood Products Week celebration.

He received the Wilson Award which recognizes personal honor, character and integrity as well as interest and participation in the club; the industry and the community. The award has been presented since 1966 in honor of the late J.S. P. Wilson.

National Oak Flooring Manufacturers Association, the American Parquet Association, the Maple Flooring Manufacturers Association and the National Wood Flooring Association. Gray Moulthrop, Searcy Flooring, Inc., Searcy, Ar., is sponsor chairman. School director is Charles "Mickey" Moore.

Airington New G-P Presldent

Harold L. Airington has been named president and coo of GeorgiaPacific effective Feb. 1.

Airington succeeds Robert A. Schumacher who will retire when he reaches the company's mandatory retirement age of 65.

Ronald P. Hogan succeeds Airington as executive vice presidentbuilding products. Hogan, 47, is considered a prime candidate for chairman and ceo when T. Marshall Hahn Jr. reaches retirement age in four years. Airington at 60 is thought too old to be in the running for the position at that time.

Kelly, who began his 33 year career in the wood products industry upon graduation from Oklahoma State University with a B.S. Degree in Forestry, is co-chairman of the Lumbermen's Club of Memphis trade promotion committee.

He retired last year after 10 years as president of the Southern Lumber Manufacturers Association (now the Hardwood Manufacturers Association). This position included serving as managing director of the National Oak Flooring Manufacturers Association, secretary-treasurer of the Southern Cypress Manufacturers Association and executive director of the National Lumber Exporters Association.

Ceremonies honoring Kelly were held on Oct.26.

Hardwood Flooring School

Applications are being accepted for the March 21-25 session of the Hardwood Flooring Installation School at the Memphis Convention Center Complex, Memphis, Tn.

Applications are available from the sponsoring associations, the

Meeting Focuses On Hardwood

An update on their current program to educate the public on the value and quality of hardwood furniture and cabinets was included in the Hardwood Manufacturers Association's fall meeting agenda emphasizing manufacturing and handling of hardwood lumber.

Lumbermen contributing to the program included Barry L. Cook, Coastal Lumber Co., Weldon, N.C.; L.N. Thompson, Jr., T & S Hardwoods, Inc., Milledgeville, Ga.; Don Overmyer Jr., Linden Lumber Co., Linden. Al.l David Williams, Louisiana Southern Forest Products, Inc., Opelousas, La., and Larry Averitt, Averitt Lumber Co., Clarksville, Tn.

The Sept. 22-24meeting in Nashville, Tn., was planned by Paul Barringer, Averitt, Steve Bryan, Mark Conolly, Clay Curtner, William Neese and Thompson.

1989 Recession Foreseen

A 1989 recession will follow a year of continued moderate growth, predicts the National Association of Business Economists.

Dlstrlbutotts

NORTHEAST GEORGE MCOUESTEN CO, Iron Horse Park North Billerica, MA 01862 (617) 663-343s

MID.STATE LI'MBER CO. 2OO Industrial Parkway Bmnchbug, NJ 08876 (zot) 72549oO

SOUTHEAST FURMAN LUMBER CO. 8l9l Annapotis Junction Rd. Annapolis Junction, MD 20701 (3Ot) 792-2234

EARL RAIFORD LUTIBER CO. PO. Box 5498 Ashe'/ilte, NC 28813 (7U)253-5ffi7

EPPERSON LUMBER SAIES, INC.

P.O. Box 1559 Statesville, NC2ffi77 (704\ 8734321

WOODFORD PLYWOOD PO. Box l73l

Albany, GA 31703 (912) 8834900

Bmnches in Alabama, Geogia & Florida

NORftIWEST HUMPHREY LUMBER CO, PO. Box 99943 Tacoma, WA 98499 (206) s846263

T,PPER UID WEST CANTON LUMBER CO, PO. Box 9328 Minneapolis, MN 5544G9328 (612) 425-t4oo

WEST

ALL.COASf FOREST PRODUCIS, INC PO. BoB M Chinc C.q 9l7OB (7141627-8ssr

HEDLI,JND LUMBER & MACHINE STAINING

PO. Box 60038

Sacrammtq CA 95860 (916) 33r€6ll

IMPERI.AL WHOIESALE PO. Box 256O5

Salt lal€ City, UT 85125 (8O0 e72-56s6

CEDAR WEST CORP

P.O. Box 5224 Denver, CO 8O217 po3)2vt{o77

George E. Kelly

D-l-Y market bullish

I N coNrnAST to the recent unI rest in the stock market. we remain bullish on the d-i-y market because the industry keeps turning in

solid growth numbers. Even on the stock market's "Black Monday" in October, both retailing and manufacturing companies tied to this industry fared much better than the mar-

Stock Index declined only about 80/o compared to the 230lo slide in the Dow, while our Lumber/Building Material Index also fell only about 8o/0.

The d-i-y market should remain full of vigor through the end of the decade. Over $67 billion in retail sales moved through this channel in 1986, and sales are expected to hit $100 billion in 1991.

In fact, the d-i-y market is far out performing the nation's total retail community. Over the last ten years, total retail sales in the U.S. grew at an 8.1% compound annual growth rate while d-i-y retail sales set the pace with an 11.80/o growth rate for the same period.

In 1986 our sales were up 13.5%. We forecast a strong l2olo jumP in 1987, and we see sales growing at an annual rate of9.6% through 1992.

While the d-i-y market is tallYing

solid growth numbers in terms of sales, it is a maturing market in terms of store units. ln the 1 970s and early 1980s, the expansion of new stores and the addition ofnew square footage fueled the growth in this market. That we believe has passed. Retailers are going to have to become much sharper marketers, doing more business with existing customers and taking business away from competitors.

We have already seen a shake out in the marketplace especially among the most recent form of d-i-y retailingwarehouse home centers. The market was introduced to the format with the opening of the first Home Depot outlet. Other retailerssome experienced in d-i-y retailing, some less sorushed to test this format, and many found that they didn't have the merchandising and management disciplines or the commitment to stay the course.

As a result, we have seen a slow down and withdrawal in the ware-

Story at a Glance

Independents will continue to dominate d-i-y retailing... sales to grow 9.6% yearly through '92... fewer new store openings... warehouse home center segment will remain below 107o.

house home center market. TodaY there are approximately 300 units in about 60 markets with 80/o of these units controlled by three corporate giants.

Presently this warehouse home center segment has captured only about a 50/o share of the total d-i-y market. We believe that even if they would reach maximum penetration, which we see at about 400 units, they would hold only a 7o/o-90/o market share.

Warehouse home centers are an exciting segment of the d-i-y market, however, and like other corporate retail chains in this channel, they receive quite a bit of ink in the trade press. However, it's interesting to irote that our channel of distribution is not chain driven as are some others. For instance, let's compare us to the discount field. In the d-i-y industry, the top 25 retail chains account for only 13.5% of the store units among home centers and d-i-Y lumberyards and only 27.8% of the sales through these outlets.

In the discount field, the top 25 chains account for 830/o of the store units and 900/o of the sales, an extreme consolidation of power when compared to the d-i-y channel.

In fact, the market share of d-i-y chains has been declining since 1983 when about 320/o of this channel's sales moved through these outlets. As a result, you see a distribution channel dominated by independent retailers still poised for solid sales growth through the end of the decade based on our numbers.

Tremendous growth potential

tNBrnEN eighty-seven was an | ! outstanding year for the building products industry. Consumption of our products was at an all-time high, and many manufacturers and retailers posted record sales and earnings during the year.At GeorgiaPacific, we remain bullish about the proscome increasingly from markets other than new housingsuch as home improvement and industrial marketsa trend that has gathered strength in recent years.

We expect a slight drop in housing starts next year as interest rates rise, but overall housing affordabilitybased on inflation, interest rates and housing payments as a percent of family incomeremains healthy and. should keep the drop to a mlnlmum.

Significant future growth in the industry will come from the remodeling, repair and additions market, a market that is expanding at an impressive 8 to l0% annually. This growing army of do-it-yourselfers and professional remodelers has specialized needs that will require innovative new products. Manufacturers that are able to develop these products will be rewarded with higher margins and more consistent demand for their products.

Another area of opportunity is the growing use of wood products in industrial applications. High-grade particleboard, hardboard and other composite panels, for example, will be in increasing demand for use in automobiles, ready-to-assemble furniture and other commercial applications.

The near-term outlook for the industry is not all positive, however. Overcapacity in structural panel production, with the resulting excess supplies, has kept prices for these products low for some time now, and there is no sign of that situation changing in the near future.

In addition, the recent volatility in world stock markets has the potential to affect our future business plans. No one can predict what this market downturn will mean to our national or world economy, but building products manufacturers and retailers should be prepared for a possible downturn in demand should consumer buying patterns become more conservative.

We can, nevertheless, be encouraged by improved export markets for wood products as a result of the lower level of the U.S. dollar compared to many foreign currencies. Pacific Rim countries, in particular, will be important markets for U.S. building products because of the critical need for housing in that area of the world.

American producers, however, must make a long-term commitment to continue serving these foreign markets. Many countries have building products specifications that differ

from those in the United States, and if we are not prepared to make products that meet their needs, we will lose those markets we have gained through favorable exchange rates.

In the future, it is clear that those manufacturers who have reduced costs and continue to improve production efficiencies will benefit.

Consumption of building products is expected to increase, but to maximize our profit potential, manufacturers and retailers must strive to keep their operating costs down.

Story at a Glance

Bullish building products future...home improvement, industry, exports offer new markets slight housing start drop in '88. foreign markets' special needs must be met.

There still is tremendous potential for future growth in the building products industry. By taking advantage of new market opportunities and better serving existing markets, manufacturers and retailers will continue to profit in years to conle.

Economic difficulties can be opportunities

T ge CURRENT upheavals in I the economy, "adjustments" of the stock market. the decline of

coupled with the continuing impact of the trade deflrcit. in total do not paint an overly optimisticpicture of the coming year. However.

Home C I ub views these dif- ficulties as "opportunities" and feels strongly that it has froperly positioned itself to maximize sales in the lumber and building materials categories. Thus,

Story at a Glance

More remodeling and repair by d-i-yers. retailers must position stores to serve both amateur and professional ...dafficult economic times expected.

HomeClub expects to have a strong 1988.

Rather than continue to review all the negatives that passed in calendar 1987, we believe that the expansion of our buying staff, continuing

December 1987
I
ll
(Please turn to page 19 )

Trade your computer for a crystal ball

Tug "ANALYTICAL"

ap-

I proach to making economic projections is to examine the current trends for the major components of

the economy,lmpose some policy guidelines and forecast. Through the first three quarters of 1987, one would quickly see that the consumer spending was holding firm and the confidence level was high. Businesses seemed to have weathered the import surge, and had begun both hiring and spending.

The trade deficit was still a sticky problem, but the odds suggested that the worst was behind us. This set of assumptions (along with few others)

would lead to the conclusion that the economy was on firm footing with the best guess being continued growth, slightly higher inflation and moderately higher interest rates.

So much for the "analytical" approach. The stock market crash on October 19 has forced analysts to abandon this approach to forecasting in favor of identifying probable forces and their effect on an uncertain world.

The drop in stock prices has had two major effects: a drop in wealth and a loss in confidence. The first effect is relatively easy to assess. The decline in wealth has been estimated at $l-$1.5 trillion. However, the decline in consumer and business confidence is a tricky and fragile concept to measure, and in the end will determine the extent of the probable economic slowdown. The reaction to the stock market drop as measured

Diversification necessary

ll, HEN the financial fault line

UU running through Wall Street shifted on October 19, the earth trembled and the global economy

teetered. We are still sifting the rubble to determine the extent of the damage, and waiting to see if there will be any aftershocks.

No one really knows what to -trl4(L expect. A calamity could be around the corner. Or the worst may be that the nation will tilt into a mild recession as the economy slows down to catch its breath. Conditions might even begin to improve in 1988 if the nation's leaders finally resolve to stop allowing America to live beyond its means.

I am going to pretend.that our future will take some middle path,

with the economy slowing a bit and the U.S. narrowly avoiding a recession. If that happens, here's what might be expected from the southern pine lumber industry in 1988.

Story at a Glance

Engineered systems, exports and treated markets will cushion housing losses.. diversified southern pine marketsto pay off ...special programs already underway.

by the financial markets and consumer surveys suggests that some damage to confidence took place, but that it appears to be manageable. The conservatism brought on by the stock market decline will be a mqior factor influencing economic growth in 1988.

Story at a Glance

Conservatism after Wall Street crash a major iactor Influencing'88 growtlr Prlme Rate belour 896, mortgagp rabs will decline. feur€r Ug dcl<et sales... we may avold a rgoession.

Consumers are likely to postpone or cancel purchases of "big ticket" items such as cars and appliances in a move to strengthen their financial positions. Businesses will tend to freeze hiring and cut back on capital spending in this type of environment, causing economic growth to slow significantly in 1988. One mitigating factor is that if the oonsumer and business sectors retrench. the trade deficit would improve substantially through lower imports. lf the reaction is as expected, we may avoid a recession in 1988, but real GNP would struggle to reach l%. However, inflation would average 4olo or less.

The reaction by the Federal Reserve to this crisis has been to provide support in the form of higher money growth and lower interest rates. As long as the economy remains weak, the Fed will remain accommodative. The Prime Rate will probably fall to 8% or less early in the year in response to Fed ease. Mortgage rates should also decline.

The interest-sensitive homebuilding market may for a time become more sensitive to consumer confi-

(Please turn to page 34)

In this environment, the housing market will have a devil on one shoulder and an angel on the other. The devil will be low confidence and the angel will be lower mortgage rates. On average, housing starts may edge slightly lower for the year, but confidence and conditions will rule.

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Unpredictable year ahead

WllJl ?fl ?,,f ff flfi'e"i"rgih

have been widely reported in the

media, the long-term consequences of the stock market's October 19 plunge remain unpredictable.

How the consumer hardlines market will be affected in 1988 by the Wall Street upheaval is difficult to

gauge. Overall, most members of the American Hardware Manufacturers Association (AHMA) will close out calendar year 1987 with strong numbers.

Through September 1987, the United States had completed 58 consecutive months of growth, tying a peacetime record. The same month, unemployment fell below 60/o for the

Story at a Glance

Consequence of stocil< market nose dive unpredk;tabb. .. bnying binge slowdown ahead. good management needed. . housing starts down slightly.

first time in this decade. The manufacturing sector had been reinvigorated, accounting for fully 40Vo of the 132,000 new jobs created in September.

While most economists predicted a slowdown in the buying binge, the industry and the entire U.S. business community may suffer a good case of whiplash if the consumer slams on the brakes too suddenly next year.

Thus, for many hardlines producers. the term "caution" will be

Bulldlng Products Dlgost

reinserted back into 1988 game plans. As one Business Week editor noted in the aftermath of "Bloody Monday:" "The success of a company, public or private, will depend increasingly not on financial alchemy, but on good management."

While the purchasing propensity of the American consumer will play a major role in determining the condition of the hardlines market, so, too, will the messages emanating from our nation's capital.

While many economists are predicting recession in 1988, the outlook for hardware/home improvement products is strong. Unless interest rates start to run up, housing starts are expected to be in the 1.65 million range for 1988, down sliefrtly from thd estimated 1.7 million this year.

Yes, U.S. hardlines producers are taking a "wait-and-see" posture for 1988. lt's diflicult ro look into the crystal ball and predict what consumer spending pattems are likely to be next spring or what Congress may or may not do on the critical issues it faces. Beneath the "cautious" veneer, however, is a quietly confident industry poised for continued growth in the coming year. Only time will tell how our business handles the fallout from "Crash '87" in 1988.

Gonsumer confidence is keystone

I USf when many thought the lU 1988 economic outlook for building products was crystal clear, a major upset in the world financial

market has a lot of people scratching their heads and rethinking their earlier predictions. Not that NBMDA members were predicting a banner year for building materials. but many memDers were conllqenl rnat a relatively stable forecast for the market was in order.

And why not? Before the recent events on Wall Street. 1988 looked to be a year of stability. Building material sales were predicted to rise slightly above inflation rates at 4-50/0.

The housing market would continue to hold its own with an estimated 1.5 million single housing units, while multi-family and commercial would continue to slump. This largely due to the 1986 Tax law changes and an over-building of commercial units.

Once again, the remodeling and repair segment of the building materials market was showing strong signs of flourishing in 1988 as oonsumers continued to be more energy conscious and interested in improving their property value.

The end-dollar opportunity for 1988 looked to be consistent with 1987: however. if the world hnancial market continues to fluctuate, consumer pattems may be affected.

In addition, 1988 is an election year. Election yean bring about a major unsettling of fiscal tax events of their own. The combination of

these two factors and their effect on the building materials market is diffrcult to predict.

Story at a Glance

Consumer confidence will dictate building materials market election years unsettle fis. cal tax events... economy will depend on control of deficit, spending and trarb imbalance.

Until the govemment succeeds in controlling deficit, spending and trade imbalance problems, the 1988 economic stability will remain in question.

12
-JI

Market positioning for success

T He INTENSITY and diversity

I of competition in today's hardlines industry has created a greater need than ever for hardware/

home

c6nter

retailers tb make a strong, positive statement in their market. This need will continue to increase, along with competi-tion, into the 1990s.

The competition that hardlines dealers face today is different from that of the past. It includes not only the more traditional hardline retailers, but also the giant warehouse retailers competing against each other, wholesale clubs, catalog sales, tv home shopping clubs, buying clubs and specialty retailers, as well as other retailers who merely "dabble" in the sale of hardware related products.

According to industry studies, doit-yourselfers comprise the largest segment of all retail customer makeup, and that trend will continue to increase in the future. However. there are other consumer gfoups which dealers in our industry need to address more aggressively in order to achieve full market share. These include women as well as commerciallindustrial customers, and each has special individual needs. To attract these customers to their stores effectively, retailers need the total support of their distributor.

Although there are common needs throughout the various retail markets, retailers in each region of the country have unique needs which the distributor must understand in order to offer total retail support. The regionalization concept helps distributors develop a greater awareness of the make-up of their individual dealers' markets.

For regionalization to be effective, dealers and their distributors

A slowdown from '87

EING an election year means that in 1988 few changes will occur in our federal government's

economic policies. Interest rates are

remain at their year end 1987 level. Unemployment will remain under 60/0, as the manufacturing sector rebounds and the service sector continues to expand. The federal spending deficit will continue to be a problem, feeding fuel to the smoldering inflation fire.

Another major concern is the persistent un-improvement in the U.S. trade deficit. The weak dollar has made domestic goods more attractive in foreign markets but is just

Story at a Glance

Hardlines dealers face increasing competition...the challenge is to determine who is the customer, what does he want. . . regional factors increasingly important.

must remain flexible and willing to change wherever there is the need to attract new customers. The third element, manufacturers, must also support their two-step distribution network by remaining flexible and cooperating closely to develop programs and provide quality merchandise at competitive prices.

The winners in the hardware/ home center industry surely will be those who have prepared themselves to manage change through regionalized support from their primary distributor.

beginning to curb the flow of imports to the U.S. The deficit should improve in 1988 as the expanding world economy supports American exports.

New commercial construction will be slightly down from '87 levels due to past over-building and weak underlying demand in most major markets. Construction of new single

Story at a Glance

Few changes in election year unemployment under 67o fewer single family starts ... products used in new construction will be down. strong growth in repair and rehab products.

family housing units will be below the '87 level due to higher interest rates. The decline will be softened by a strong underlying demographic demand. Multi-family housing will remain depressed due to past overbuilding and slow absorption rates. Sales of existing housing will be below '87 levels but remain around 3.3 million units due to a continued demand for upgraded housing from existing homeowners.

How does all this eflect the demand for building products? The need for products used in new construction will be down from 1987 levels. Demand for products used in the repair and rehab areas will experience strong growth. New owners have a tendency to fix up and improve their newly acquired properties within two years of purchase; thus the strong real estate market of the past two years will carry over into 1988. The retail/d-i-y and the commercial retrofit channels will beneht from this growth.

In summary, 1988 should be similar to 1987, but could be our last good year for awhile as short comings in past economic policies catch up with the U.S. economy.

December 1987
13
W;.""?'llS"tiiiJ

Diversification spurs panel industry growth

ARKET forecasts are always hckle and subject to change - especially when such projections are made in a period not yet stabilized following a historically steep plunge in the stock market.

With this qualification, however. I believe the U.S. structural panel industry can ap- proach the futureboth

immediate and long-rangewith its customary confidence and optimism.

There is an obvious need for discipline and calm in the prosecution of our nation's economic policies. The American Plywood Association joins with the industrial community everywhere in support of bipartisan efforts to harness and progressively reduce the federal deficit. We equally support national economic policies that will sustain a reasonable measure of economic growth while avoiding a new inflationary spiral.

Subject to the attainment of these larger objectives, America's basic economy appears sound, and founded on real achievements in productivity improvement and market expansion.

We are completing a great year which should see 1987 industry production at 27.l billion square feet, 3/8-inch basis. This will be our fifth consecutive production record.

_ The interesting thing about the demand expansion is that it has been proceeding steadily at a time when home building, as previously predicted, has been declining.

How will the panel industry manage to have easily surpassed the 25.6 billion foot record of 1986, with its largest single market in a moderate slump?

We were helped by the fact that panel volume increased substantially in each home builta direct result of promotion. But the driving force for the 1987 demand surge has been market diversification - again the result of a long-range approach to promotion tackling the best oppor-

tunities in every sector tiom home building to repair/remodeling, nonresidential construction. industrial applications and exports.

The nonhousing markes and exports are the major areas where big promotional gains are being recorded.

Over-the-counter panel sales from home additions and alterations are continuing to grow from the hot pace of 1986, when there was a 34o/o gain in expenditures from 1985.

Adding to this is an unexpectedly high level of panel usage for nonresidential remodeling and maintenance. This market segment appears to be twice as large as APA previously estimated.

Export markets are expected to

top 800 million square feet for 1987, 330/o over 1986.

Will the broad multi-market advances of 1987 continue in 1988?

While the full impact of the recent stock market crash and resultant world money market fluctuations will not be known for some time, we feel the basic economy will plod ahead. Housing should do better than previously expected, giving hope for another year ofstrong panel market activity.

With the close support of dealers and distributors, we look forward to doing our part in maintaining a healthy economy and providing mutually shared opportunites for all engaged in the manufacturing and marketing of structural panels.

Story at a Glance

Fifth consecutlve producdon record this year.. panel volume incrcasing in each horp built. over-trrcoulrEr sahs growtt will bp galo...elpott market continrrs slrong.

Rehab market spurs window, door biz

W.o"??"Hff Hx's"fl tTfi Jl: for American homeowners, particu-

larly in the growing repair and re-JL- modeling mar- ket, through 1988 and beyond.

Independent research conducted for the National Wood Window & Door Association byMcGraw-Hill/ LSI Systems, Inc., indicates that wood will be the material of choice for windows, sliding and hinged patio doors, passage

doors and exterior doors used in rehab projects. In 1988, that rehab market is expected to account for nearly 600/o of all window sales and nearly 50/o of all exterior doors sales.

Interestingly, I{WWDA research indicates that homeowners tend to renovate their homes within the first six years after they have moved in. This means that if the healthy home resale market continues as expected, the renovation and remodeling market should continue strong for some time to come.

This trend will create new opportunities for retailers who are prepared to address this growing market segment. Merchants should consider developing eye-catching displays

14
Bulldlng Productr Dlgeet

well conclude that the marketplace is becoming a very iffy environment.

To Peters. a well-run company in the near future will be one that flourishes on changes and chaos.

According to him, hrms should add substantial effort towards quality services, quality salespersons and remain highly flexible in operations. There are other facets to a successful business but Peters makes some valid points. We think much of what he espouses should be heeded.

As we enter 1988. it looks as if our lumber industry should enjoy another good year. . at least through the hrst three quarters. Rising interest rates in late 1987 will diminish the demand for lumber somewhat, but unless rates get out of hand, good building activity will continue. Election year politics will not

Position your company in 1988

Story at a Glance

Another good year for the lumber industry. .. 1.55 to 1.6 million housing starts... good markets for industrial lumber excellent remodeling market in'88.

provide us a boom but they should keep a lid on outrageous money costs.

NAWLA projects a 1,475,000 housing start year; good markets for industrial lumber: an excellent

remodeling market in 1988; and further pleasant surprises in the 1988 export market.

On the negative side, we found a great deal oftalk about a serious business decline in 1989 as we conducted our Regional and Sector Meeting schedule last fall.

This leads us to conclude that lumber producers and distributors should use 1988 as a time to achieve internal excellence in operations. Objectives might include some or all of the following:

. Is your sales operation as lean as it could be? Is your sales staff as professionally excellent as it could be?

o Is your firm taking new precautionary measures on credit exposure?

illustrating creative uses of highquality wood windows and doors in renovation projects.

Story at a Glance

Over half of all sales for rehab. increased glazing and other technological advances . trend of more windows per home will continue.

Several factors are influencing the demand for wood windows anddoors. First, and foremost, homeowners are placing a high demand on quality in the products they select in both new construction and in remodeling. They are selecting wood windows not only for their strong aesthetic appeal but because of their thermal efficiency, durability and ease of maintenance.

Wood windows and doors are highly thermally efficient, and manufacturers are improving this performance even more through new glazing systems, such as Low-E glass. NWWDA sees a continuing trend toward use of technologically advanced glazing systems for the foreseeable future.

Manufacturers also will continue to employ exterior cladding systems.

A trend toward the use of more windows in new single-family homes began in 1986. The single-family detached home built in 1986 had an average of 14.2 windows per home, compared to 12 in previous years. That number is expected to remain steady in 1987 but will close in on the l5-windows-per-home level in 1988. Average window usage in single-family attached homes also will rise in 1988, closing in on the l2windows-per-home level, an increase of almost two windows per home compared to 1986 and 1987 levels.

Average door usage per home will remain relatively steady in 1988 for all housing types.

o

If your firm is engaged in distribution, are you improving your value added services to both your supplier and customer? What new customer services can you perform profitably?

Are you properly measuring your supplier and/or your customer? You can be assured that they are measuring you, no matter which end of the board you are holding on to.

Have you noticed improvement in staff productivity and staff motivation?

Are you prepared for good times next spring and bad times next December? Just how flexible can your company be?

This is a tall order for management. Lumber firms. bv their nature, must perform diilr tasks leaving limited time for strategic planning and implementation. Yet, if the latter can be accomplished, it will keep the bottom line healthy in good times or bad times.

Our final thought is that it doesn't seem possible that a great boom in 1992 or 1994 or whenever. will occur. In other words there may be no "feast" beyond the next "famine."

December 1987
15

Buildinq -- Products

N$trWSBRItrFS

f$s9fdffwes$lis**r.*,,#r..f.r.#'i ti$t;1.ii+.+iiliilii!:i!:l.ri.il$1.*

Home Quarters Warehouse wlll have double opening ceremonies for two new stores in Charlotte. N.C., in February .. Hechinger Co. will open stores in Harrisonburg and Centreville, Va., next year Home Depot has signed a lease for 100,000 sq. ft. in The Home Depot Plaza, Jacksonville, Fl....

Choo Choo Supply Co. will open its third Do-it center and seventh store, in Hinesville, Ga., this month .. Holmes Lumber and Home Center, Jacksonville, Fl., has refurbished, becoming a Sentry Lumber's Store of Tomorrow...

Lowe's, which will add 175,000 sq. ft. to its distribution warehouse in Winston-Salem, N.C., has obtained a future store site in Franklin, Tn.: stores in Baton Rouge, La., and Little Rock. Ar., have been closed

Westlake Hardware has installed new interior and exterior signs at its Edmond, Ok., store Pace Hcme Center, Milton, Fl., has added a 2,500 sq. ft. lumber shed . Tindell's Inc., Knoxville, Tn., has opened Iindell's Gallery of Windows in Knoxville, Rick Becker, mgr.

Elray Kocke Service Inc., Donaldsonville , La., has remodeled and remerchandised, changing its name to Elray Kocke Service Pro Home Center.

True Value Hardware, Fort Pierce, Fl., has been closed with the retirement of owners Bruce and Ruth Thompson...

Causeway Lumber, Boca Raton, Fl.. has been in business 27 years inventory of Homeowners Outlet Mall Exchange, which is liquidating under Chapter 7, was auctioned last mo. at its Naples, Fl., site.

Ply Mart has opened a 37,000 sq. ft., l0 acre facility in the McDonough/Stockbridge, Ga., area . Jintmy I4/hittingron Lumber Co., Memphis, Tn., will open a Cordova, Tn., location this month.

Alamo Lumber Co., New Braunfels, Tx., plans to build a portable concrete batch plant . . Yard King is opening a store in Miami Lakes, F1....

Builder's Supply Co. is constructing a new facility in Petersburg, Va. . Sv'i.ft Supply. Atmore, Al., has doubled the size of its showroom and refurbished the entire lacility Pary, Co. has opened a lumber distribution yard in Elizabethton, Tn., George Hodge in charge . Home Depot has a new store in Douglasville,Ga....

W. P. Stephens Lumber Co., Marietta, Ga., is building a 9,000 sq. ft. retail center as part of a $l million renovation program. Toney Lumber Co., Louisburg, N.C., is adding new equipment in a $100,000 streamlining of operations . . . Reed Lumber & Wood Yard, Roanoke, Va., lost a sawmill in a recent $175.000 fire...

John Nichols, A.T. & N. Lumber Service, York, Al., has purchased Thomas & Miller Lumber Co., Linden, Al. ... Cox Wood heserving Co., Orangeburg, S. C., is sponsoring a car in the NASCAR Busch Grand National Series for 1988 . .

Forest Products, 1nc., Roswell, Ga., has acquired Jones Building Materials, Canton, Oh.. . Continental Wood Trading, Inc., has been formed by Harold K. Osterheider in Houston. Tx.

Building Products Digest

Beasle.t' & Sorls, Nashville, Tn.. founded in 1857, has been named one of the city"s oldest businesses bl' the Nashville Busi,?ess Journal . Ou'sle,y Lumber Co.. Milton. Fl.. is 55 years old.

Pro.fitMaster Computer .S1'stenrs, Inc.. has relocated its corporate Hq. in Austin. Tx. GS Roqfins Products Co. has moved its South Central Region Hq. to Dallas, Tx.. from Houston. .

Flora is a new ceramic and porcelain floor tile distributor in Boca Raton, Fl. AJBoyd Industries, Inc., has opened a 30,000 sq. ft. manufacturing plant in Houston, Tx. . . Belwood, Ackerman, Ms., has filed for protection under Chapter 1l bankruptcy

Duo-Fast Corp. earned an award for .{chievement in Product Safetl, from the National Safett'Council

Porrer Paint Co,. Louisville. Ky., has agreed to be acquired by Courtaulds PLC of the United Kingdom the National Association of the Remodeling Industrl' has established a new local association in Wichita Falls. Tx.

USG Corp. has filed a lawsuit against Wagner & Brow4 a Texas partnership, to stoP their attempted takeover of the company...

Disston Co., Greensboro, N.C., has agreed to be sold to James Neill Holdings PLC, Sheffield, England, the largest hand tool producer in the U.K.. Nortek has withdrawn its hostile bid for Kincaid Furnilure, Hudson, N.C.

Housing starts slid 8.2% in Oct. (latest figs.) to a seasonallY adjusted annual rate of l.5l million units, the lowest in almost 4l/2 years. single family starts fell 7ok . .. multis dropped l60/o .. . permits were off 3.40/o .. in the South starts fell 110/o .. actual starts for the first 10 months of '87 were down l2olo from'88...

16 ilittt$*'t".r\t{lt$(s*r*$r*r*t$l''$*r+j+

Yoursource of

quallg redrrood and Douglasfin

I n 1889 we built the first dryI kiln for redwood processing. I This was later followed by the construction of the first electrically powered sawmill in California. In 1983 The Pacific Lumber Company completed construction of a new state-of-the-art Doug las f ir sawm ill capable of milling logs six feet in diameter.

Today Palco continues to be a leader in kiln-drying and manufacturing of quality redwood and

Douglas fir products. We specialize in vertical grain lumber including Clear All Heart and Clear grades of Certified Kiln Dried redwood and C&Btr Douglas fir. Air seasoned Rustic redwood sidings can be shipped in mixed truck loads with a full line of rough full-sawn, S4S, orpattern redwood and Douglasfir. With one truck. from one location, you can obtain up to twenty ditferent redwood and fir products in convenient pre-tall ied u nits.

Overthe years our manufacturing and flexibility in shipping have evolved to meetyour redwood and Douglas fir needs.

Photo: Pacitic Lumber Company Archives
Frt I ]lf yItI I ;l TFLIUIY THE PACIFIC LUMBER COMPANY 100 Shoreline Hyw. #125, Mill Valley, Ca 94941 41 5-331 -8888

nlnfi DOUGLAS FIR tl

An excellent softwood widely used in basic construction work, Fir is straight-grained, moderately heavy and normally dense - one of the strongest softwoods. Exceptional long use life. Successful long life paint finishes.

Try our DOUGLAS FIR Dimension!

CALENDAR

DECEMBER

Netional Oak Flooring Menufeclurers AssocirtlonDec. 6-7, annual meeting, Peabody Hotel, Memphis, Tn.

BrtimetDec. t-15, international building exhibition, Paris. France.

Deteline - Dec. 10, "How to Buy" computer seminar, Airport Holidome, New Orleans, La.

JANUARY

Netionrl Housewlres Menufecturers AssoclrtionJrn. l0-13, international housewares exposition, McCormick Place, Chicago, Il.

Lumbermen's Club of Memphis - Jrn. 7, installation luncheon. Ramada Hotel, Memphis, Tn.

Netionel Building Meteriel Distributors AssodrtbnJrn. t-9, "Best Seller List" workshop, co-sponsored by North American Wholesale Lumber Association, Nashville Marriott, Nashville, Tn.

Netionrl Associetion of Whobseler-DistrlbutorsJen. l016, annual meeting, Westin Kauai, Kauai, Hi.

Amerlcen Hrrdwere Supply Co.Jln. ll-13. lumber market, Marriott's World Center, Orlando, Fl.

Kentucky Lumber & Buildtng Meterlel Deelers AssocirtionJen. ll-13, annual convenlion, Hyatt Regency, Louisville, Ky.

HWIJan. 15-16, winter building products market, Stouffers Hotel, Orlando, Fl.

Netionel Associrtion of Home BulldersJen. lS-lt, annual convention & exposition, Dallas Convention Center. Dallas. Tx.

Home Builders Associetion of Ner OrleensJen. 20-2, annual home & garden show, The Superdome, Ncw Orleans. La.

Cotter & Co.Jen. lE-20. buying show, Orlando. Fl.

Building Mrteriel Merchrnts' AssocirtionJen. 2t-30, buying show, Georgia International Trade Center, College Park. Ga.

Generel Herdwere Co.Jen. 29-31, Sentry show, Marriott World Center, Orlando, Fl.

FAMOWOOD

is the PR(lFESSl0tlA['S Att PURP0SE PLASTIC

Boat builders, furniture makers, cabinet makers, elc. have found it the one sure answer to correcting wood defects, filling wood cracks, gouges, covering countersunk nails and screws.

Can be used under Fiber Glass! i$er

Ready to use right out of the can, Famowood applies like putty-sticks like glue; dries quickly; won't shrink, and will not gum up sander. Waterproof and weatherproof when properly applied. -41, Ayaileil! in 16 mrtching woorl colors .nd riate.

BEVERTY MAI{UIACTURING C()MPAI{Y

FEBRUARY

Lumbermens Associetion of Texes - Feb. l{, boud of directors/committee mectings, Austin, Tx.

CC DtstributorsFeb. 5-7, Sentry market, La Quinta Royale Hotel, Corpus Christi, Tx.

Netionrl Concrete Mesonry AssochtlonFcb. 7-t, rnnud exposition, Opryland Hotel, Nashville, Tn.

Centrrl Builders Supplies Co.Feb. l0-ll, annual buyrng show, Louisville, Ky.

Cerolina Lumber & Building Meterlrl Deders AsrodetionFeb. ll-13. annual oonvention. Convcntion Center, Charlotte, N.C.

Mld-Americe Lumbermens AssocletlonFcb. ll-13, annual convention/exposition, Bartte Hall, Kansas City, Mo.

Mississippi Building Mrteriel Ded,ers AssotletbnFeb.

1E-20, annual convention & trade show, Royal D'lberville Hotel. Biloxi. Ms.

18 Bulldlng Productc Dlgect
'&z' l]|0 ilils cal|$ uli|]| |l|8 Bt0Pt0flI$!
frmoalrra I
P.0. 8ox 73233
9118 S. Main Streel 'Los Angeles, Calif.90003,

Zarkin

(Continued from page 9)

modification of our lines of merchandise and strong improvement in customer service will make the difference for HomeClub.

Difficult economic times, slowing housing starts and concerns about a possible recession will force the current home owner to stay in their present home. Past experience shows that they will in turn fix-up, add-on and dramatically modify their dwellings. They may eliminate the middleman (the professional), opting to do it for themselves. HomeClub is uniquely positioned through its purchasing mode and service level to equally satisfy the amateur and the

lUhen Vou

uJont the highest quolity ovoiloble in CCR TVpe C Prcssvre Treot ee) lumber, coll

professional.

In non-building materials and lumber categories, our continuing softening of the mix of merchandise that we offer will enhance the total do-it-yourself shopper (men and women) making HomeClub truly a destination shopping experience.

In summary, most companies view themselves against last year. Being a very new company, only four years old, we are confident that the best years are yet to come and are not concerned with what took place in the past, but rather with what opportunities there are in the future.

We feel strongly that HomeClub is well positioned to deal with the opportunities no matter what the economic climate really turns out to be.

Home Depot Protests

Home Depot Inc. has filed suit in federal court in Atlanta. Ga.. claiming that Oflice Depot, an office supply warehouse company, has copied the home center warehouse chain's name, advertising and store design.

The complaint seeks to "preliminarily and permanently" prohibit Office Depot from doing business using its logo or "any other mark" that confuses the two stores.

Office Depot, based in Boca Raton, Fl., was founded last year by the late F. Patrick Sher. It has seven stores. all located near Home Depot stores, according to a Home Depot spokesman.

Hlghost Ouolltg Posslbls ot Competltlve Prlclng

c u RT,P,F,|!!y,".}*r,ilt nf,0.s.g,;' I N c.

Frkonsos TURTS l-(800) 482-2352 Notionol TURTS t-(800) 232-2326

Eltt llFBDlltlG o Llt{DR PRIDDY o BOSS RRSilUSS€N

[Ue con fill oll Vour treoted lumber needs. . . londscope timbers, plynlood, oll dimensionol lumber, 4x4 through l2xl2. On 6x6 ond lorger uJe hove lengths ronging up to 45 feeE. Plus, ura nou, corrv in stock .60 FDN. [Ue olso hove our ou,n fleet of trucks to help you solve ony deliv@ry problems Vou moy hove. Rll our moteriol is TPI grode morked. [Ue feoture the Rl.lJPB quolitv mork on oll our treoted motoriol.

Deccmbcr 1087
19
I' t Z

HOME GENTEM MERGHANT

11650 lberia Place

San Diego, Ca.92128

T HE PRINT ads are geuing berrer.

I There is more variety and a greater sense ofurgency in the home center and building material dealer advertising. Color is being used more effectively. Illustrations are crisper. Headlines are clever. The formats, ranging lrom tabloids, flexies and catabooks, to color comic fold-outs, are exciting and efficient.

While most major advertisers in our industry have learned to maximize their advertising dollar there are still a number of retailers who do not understand the function of retail advertising.

Advertising is not a panacea. lt's a communication vehicle. Advertising is a means to meet individual store and corporate sales goals.

Advertising can:

. bring in traflic

o sell specific items at prices

I advertised

o create long range image position both store-wide and by department

. introduce new product categories

o introduce new items create impressions such as the store's value image

Advertising can not:

o overcome high prices or bad merchandise

o compensate for a poor location or limited hours or bad facilities

o overcome the image of discourteous and/or unknowledgeable salespeople or poor systems and procedures or unrealistic credit policies.

Some retailers don't realize that they are running a clearance ad 52 weeks a year. The operator that waits 'til the newspap€r salesman is in his store on Tuesday to pick up the advertised list of merchandise lo be run on Thursday is making the newspaper wealthy. but probably hurting his position in the marketplace. When the retailer shouls to the back room. "Tell me what we've got enough of to run in this week's ad," he's presenting in print what his customers are telling him they don't want . his overstocks. That is not what advertising is all about.

Consider not running the ad during a short week or weekend, if you've nothing to say or if you're facing poor floor coverage.

lf you've got nothing to say to the public, say nothing. You will spend your advertising dollar much more wisely if you run your ads less frequently and with greater size and impact.

20
Bulldlng Products Dlgeet

[)llin lrltclttl\\!'ck\ lrhcliti I)o rour .rt1t crtistltg plltltrtittg llrr cngr-rglt in .Ltlr .inec lo orclcr--i n \pecilrl nrcrchiut(ii\c. to colntttttr.ticlltc \\ rllr thc .lrlc: sttrll :rncl t() rllsIlir\. :ign rrntl rtpricc thc nlcrcirilnci sc.

( (rl1\lLI('l Il(rl rulmrtg iilt itcnr

tltal s llt \ltof l |lt\ cltlot\

u hen r ou shorr out-ol'-stocks ol thc flttinus or rrce,.ssorics

o ii it is rLgriin :chcrlLrlc(i in iln upr'olll llll] l]lllor l)r()lltolloll

il it is rr brrri rllLrc

thrrt is highcr priccrl thrtn corrpetilion's clur -in. dar -t,Lrt :hell' nricc'.

( lrrrllcnge cr clr clrntiirllrtc as an itcnr to bc rrtlr crtise(i. I rr this :torc eitrcl rrnd futC ellch f ri{eriir 11111' ltCrint. Cre ept tr here lr()lcd.

I nircrs.rl rrp1tc.tl lscr & rtsc)

In :clrson

I)isposublc

\on-eonrpc'1it jr e (scorr I points)

l ,rnil tt.l tfgitl

Ilccognizrrblc raluc (scorc .l

points)

Pricctl Lrrrrlrr c:t.rbli:hcri rcluil

trr ic'

I{eqLrircs tie-in rrcrchitntlisc

lrasilr rcplenr:lrLhlc

Snruli - [rasi to h.rndlcFasl

to displlr ( oopcrlrtir e rrtl lirnris ur lrillible

I)rOt.rrolcs il tlcnilrl llcnl

\cll'-sclrct

IJrrckctl b1 netionrrl lcli crtising

I lcrc's lt0$ to sc()rc:

l-l- lh pointsRLrn it rigain thc lirlloriirrg *cck.

I l- 1 2 points( irerrl itcnr to lilr crt isc

t)-I0 |i11n15(ioorl lrclvertislhlc itc nr.

-l-8 pointsIl's iLrst ir "nrc too' ttc'nl.

I nclcr .l points - I)on't $irste thc u(l spacc.

\lcrcl.trrrriirsc thc ltircrtising ilt slorc lcrcl. Iickct thc protlucls. dcr()rrtc $ith pcnnlilrts. blrtncrs lntl signs 1o coorclinatc tlra sitlcs Pronloti0n eflort.

Kccp lour lrlr.ertising looking lieslr

ln(l shilrp. I or-bid r ()tlt 11a\\ sl)ltpL-r or printcf to r'anfo(iLlce lrrrrtt oicl clippings lnd tciLf\hccts. lnsist on thcnr sizing lionr thc originrl ilrt \\ork to nr.rintarn the high stanrlrrrcl o1 i our aclr crlising ltre5r'ntltl()n.

rDtilcloN"

SPECIALIZED TREATMENTS NOW AVAILABLE

o Wolmanized Lumber

o Dricon Fire-Retardant

. Creosote

PRODUCTS AVAILABLE

r Landscape Timbers

r Railroad Ties

. Poles . Posts

o Dricon Fire Retardant Treated Wood

r All Weather Wood Foundationsr AWPB-FDN Stamped

For information on quiek service call the treating sxparts/

December 1987
a a a a 21
One That Wotks Wherc Humidity's High
Fir6 R€tardant Trealed Wood The
ARIZONA PACIFIC WOOD PRESERVING CORP. P.O. 8ox 96E r 8(F Wed Chomber$, Hoy, Arlzono 8523,1

JOHN BNANSCT'DI erccudrc vlce prccldcnt

(!nCe Nov. l, OLA retail andasso- lV ciate members have been able to call the association offrce in Oklahoma City toll free.

To take advantage ofthe new service, members simply dial a l-800 phone number which routes thefu call to a private switchboard located elsewhere in Oklahoma City. Callers will know they have reached this switchboard when they hear a did tone. At this time the caller will enter a special four digit number which will then route the call to the association oflice.

There are two different 800 numbers

depending on whether the call originates from within or from outside Oklahoma. For those callers dialing from a point within Ok'lahoma the phone number is l-800-5224496. At the dral tone callen must enter 9OLA (or 9652). For those initiating a call from outside Oklahoma, the phone number is l-80G2214905, with the same 9652 number being entered at the did tone.

Anyone necding to contact the association offrce may use the toll free number.

If you experience any diffrculties with this new service, please advise the association offrce ari sq)n as they oocur so we can resolve them as soon as possible. OLA offrces will be closed for the holidays on Dec. 25 and Jan. l.

]lr:)6a E S74fit

I N rOonv'S fasr moving, highly I competitive business environment, lumber dealers should continually review their operation for ways to improve efficiency and increase profits. A good way to start is to look over your current business operation and make a list of "No Cost" and "Low Cost" improvements that can be implemented by your employees as time permits. It is one of the best ways to improve effrciency and increase profits.

Below are just a few "No Cost""Low Cost" improvements you may wish to consider and then select two or three for starters, or add them to your own list for implementing this year:

(1) Now that mid-year inventory is completed, make a list (a "plush list") of inventory dogs and surplus items, and give it to each salesperson with an incentive and perhaps a dollar quota that they are asked to sell.

Q) Work with your employees: Re-

view, recognize, and try to improve some of their work problems. Provide them with basic training tools such as a NLBMDA Forklift Training Manual or a NLBMDA Truck Driver's Manual. Have a monthly supervisory meeting to air pending problems and discuss plans for the month ahead. Also, don't forget to say thank you for a job well done!

Delivery expenses are a continuing concern. Develop a very simple delivery policy for guidance to your salespeople. Most dealers' delivery trucks cost about Sl per mile to run, i.e., a trip of l5 miles out and l5 miles back has a direct delivery expense of $30. Develop your plan to @ver your expenltes, perhaps by zone and dollar sales amount.

(4)

For security, make sure the order filler and truck driver are not the same person. Both should count the load, then a spot check of every 2nd or 3rd load at random

22 Bulldlng Productr Dlgcrt
S43 Srndcd Bo.rd. t Ou.llty O.k Xooldlngn * Y.no.rcd Producb t1 Acrc Concantr.ttotr Y.rd t,OOO,OOO Bd. Ft. Ory Sto'.gc | 0 C.t n.il Spt't | 50,000 Bd. Ft. D.t7dt rlillrc.trotl Dry Kllns Srrt c. & st'.',tghttrc rlpplru avtllablc
BOXS2A,ROUIEI .
r,pNIELlO,Wl539.l9
actlng execudve vice president
HAPPY HOLIDAYS
Ollahoma Irrmbermenl Asooclatlon 613l t{. Il Ar., Orbrcr Clt, OL ,tllt (a0t} $rztr OIGAHOMA SPECIALTZING IN TTIE PRESEnI'TNG VETLOWPIIIE Route 2. Box 41-E Nerrbemy, s.c. 29108 (803) 276-333 Lumbermeo'o Aococledon of Teree P.O. Ec ltlG Ardr. Tr 7tl6t (5U) arlrrta
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(3)
TOPICS

by the foreman is advised. Change gate locks or re-key once a year and permanently secure the lock to the gate or chain so that it cannot be removed in the daytime or replaced without your knowing it.

(5) It doesn't cost anything to look. If you are not computerized, do yourself a real favor and talk to two or three of your competitors. The prices are lower now, the installation simpler, and the benefits are enormous. It may be the difference between profit and

loss in your business. A computer now pays for itself in 2-3 years. When you, the owner, are committed to a computer installation, it can happen quickly and without pain. It will pay you to look into a computer for your business now! These are all important functions for your company. All are vital to its profitability. We would suggest you make time to implement some of these valuable functions, plus a few of your own. Make these part of your plan for 1988. It may help make it one of your best years. We certainly hope so.

Land of DINEH Reputation by Product PONDEROSA PINE

ARKANSAS a OKLAHOMA

I f lS becoming evident that Lowe's I and Payless Cashways, to name only two mass-m€rchandisers who have seen their sales slide in Arkansas and Oklahoma, have decided to try and buy market share in the d-i-y and the commercial building material categories via significant increased levels of consumer spending and/or reduced prices.

If mass-merchandisers persist with this strategy, as they can aflord to do, the independent lumber dealer of America and the product lines he sells must anticipate market share erosion and profit minimization. A principal weapon of these major competitors has been the massive infusion of dollars into continuing advertising programs aimed at increasing consumer awareness.

An analysis of the strategy they are advocating clearly indicates that the major mass-merchandisers are now attempting to sell customer service (and price), long the primary focus of the independent dealer. Unchallenged continuation of the massive media weight and the claims of personalized service will likely result in a continuing share growth for the mass-merchandisers, much of it at the expense of independent dealers.

Recent history gives convincing testimony that independent dealers cannot rely on their traditional methods of doing business, their traditional spending levels and the traditional support of suppliers they represent, ifthey expect to stem the loss of business to these

extremely aggressive competitors.

As we strart off a new year, all independent dealers should resolve to stem the erosion and reverse the market share trend by:

(1) re-aflirming their position as the building material supplier advocate for their consumer/customers.

Q, re-establishing their leadership as the most important segment of the building industry in their community.

(3) becoming known as uniquely different and superior to any massmerchandiser.

@ establishing a benchmark against which all others will be measured.

(5) strengthening their position with and natural ties to their supplier companies.

(6) convincing users/prospects oftheir superior ability to satisfy consumer product and service needs.

The climate will be right in 1988 to create in the public mind a clear understanding of the "big difference" between the independent and the mass-merchandiser. If you act aggressively and positively you can convince your customers that they will be treated with greater professionalism and receive greater value from you, the independent dealer, than they can from the massmerchandiser.

Make plans now to attend our l00th Exposition and Convention Feb. ll-13 at Bartle Hall, Kansas City, Mo. It promises to be the largest show ever with 300 exhibit booths. Our special l00th Anniversary luncheon will feature Paul Harvey.

Premium Quality

Lumber

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1987
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23
Fine Textured/ Kiln Dried NAVA-PINE
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pak pT.L. 'kffi.- and PJ/. w \./ NAVATRIM '--ffid Premium Mldgs. ,:1TT and Millwork "W Bundled/Unitized/ SU.A lttfilt NAVAJO PINE Direct Sales: joe Shipman, Mitch Boone, Rich Peshlakai (5O5) 777-229't NAVA'O FOREST PRODUCTS INDUSTRTES P.O. Box 12E0 Navajo, New Mexico 67328 (505') 777-2217 An Enterprise of the Navajo Tribe
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SOUTHEASTERN SCENE **nng

association nerus in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, the Carolinas, Tennessee and Virginia.

Kentucky Lumber & Building Material Dealers Association plans two seminars for its annual convention Jan. 12 and 13 in Louisville.

C. Joseph Green, Mapother & Mapother, Louisville, will lead a session on "Collections and Bankruptcy." Jack Rice, senior consultant, Person Group, Carmel. In.. will head a discussion of "Around the Lumber Yard Everyone Sells."

An evening at Louisville Downs, an all industry cocktail party and Monte Carlo night are also planned for recreation.

Tennessee Building Material Association's new directors will take oflice on Jan. l.

They include John Seward, Paty Lumber, Piney Flats, District l; John Greeter, Greeter Building Center, Monteagle, District 4; Larry Quesenberry, Southland Supply, Murfreesboro, District 5l Bob Walters, Fischer Lime and Cement Co., Memphis, associate member director; Charles Brooks, Citizens Supply Corp., Kingsport, director at large, and Randy Rinks, B & B Lumber Co., Savannah, director at large.

Bill Sharp, Percon Group, will lead a day long seminar and discussion on retail selling skills, "Around Home Centers and Lumber Yards Everybody Sells." for TBMA members on Jan. I I at Sheraton Music City, Nashville.

Building Material Melchrnt's Association of Georgia and Alabama will give away over $10,000 in cash prizes during its 8th annual Buying Show, Jan. 29 and 30 at the Georgia International Trade Center, College Park, Ga.

BMMA will give away $100 in cash at a mystery booth every hour of the show. At the Saturday night banquet there will be nine different drawings for cash giveaways. These include four $250 prizes; two $500 prizes; two $1,000 prizes and one $5,000 grand prize. Dealers, members and non-members attending the show are eligible ifthey are preregistered and in attendance at the banquet.

This year's show will cover the entire 40,000 sq. ft. trade center with 187 exhibitor booths.

Mississippi Building Material Dealers Association's 1988 convention committee has arranged for Dick Molpus, Mississippi secretary of state and a

possible U.S. Senate candidate, to speak at the 62nd annual convention and trade show, Feb. l8-20, according to Bill Reynolds, chairman.

Deadline for reserving space for the show at the Royal D'lberville Hotel, Biloxi, Ms., is Dec. 15. The committee reports over 700/o of the booths are already reserved.

Kenneth Breland, president of Breland Building Supply, Inc., Philadelphia, Ms., has been elected District 4 representative to the National Lumber and Building Material Dealers Association. Mississippi delegates to the convention in Boston. Oct. l5-18. included Breland with his wife, Shelby; MBMDA president Dwight Long and his wife, Gail: Fred and Penny Nabors and association director Bob Catlin and his wife, Dot.

Yirgintr Building Meterirl Associetion's education oommittee chaired by Val Hume of J.W. Masters, lnc., has scheduled a series of seminars for December, January and February.

A seminar designed to give sales per-

(Please turn to Page 38)

24
Bulldlng Productr Dlgc.t
;**'5ji4 ww--w MARTIN FOREST INDUSTRIES v0n431-1200 CORPORATE OFFICE: 195 Dry Creek Rd' (P.O. Box 159) Heoldsburg, Co. 95448 (7O7) 43'l-1n0 FAX VOn $1-1628 DUBLIN. CA DMSION: P.O. bx 276. Dublin, Co. 94566 (41q 8n-I22 FAx' (41q 8n-n37

OPERANNG OPPORTUNITIES

f HtS is the month when plans and I prognostications for next year are being made. Dollar budgets are probably already planned and next month their implementation will begin.

Here is a "doable" method which will convert dollar inventory plans into manageable unit control. It's a simple and proven four point process which will work with or without a computer.

First, Identify a Shipping Performance Factor: Do this by evaluating each of your suppliers to determine how long it took on average the last 12 months from order placement to an instock position. This can be done by reviewing purchase orders, receiving tickets, invoices, etc. Compute this into "number of weeks." In this manner, assign a shipping rating to each of your regular sources. This will tell you at a glance how each may be expected to perform and when existing inventory will be depleted if no reorder is placed.

Second, Determine Inventory Coverage Needs: Convert your budgeted turnover target to weeks ofanticipated sales. Four weeks equals a l3 time turnover. Records of last year's unit performance should have been maintained and they will probably indicate that unit sales do not occur equally in each four weeks throughout the year. However, what you are attempting to do is establish an order placing discipline that is controlled by the unit sales activity, identified and planned for l/l3th of the year. You are setting how many weeks, in unit sales, of any one item to have on hand and on order for a given period. A 13 time turn averages four weeks of inventory coverage.

Third, Make Regularly Scheduled Stock Counts: Set up a count schedule by supplier or product line, category, etc. With each inventory count, place an order for enough units to provide inventory on hand and on order within the supplier's proven shipping performance record to keep inventory levels at four weeks of estimated unit sales by item.

Fourth, Analyze Inactivity: Plan to identify and take action, when indicated, to reduce units on hand or on order which exceed four weeks of anticipated sales. Most dealers will do 800/o of their business with 200/o of their items. This is a built-in signal flag saying that sales will

take care of 20 items while lack of movement can be a disaster for 80 items. The danger is obvious. A few months of stagnation should tell you what must be done.

Like any other system or plan, this

one is not perfect, but ifyou achieve 90% of a budgeted 13 time turn you'll get 11.7 turns, 80% would generate 10.4 turns, 700/o gives you 9.1 turns and 500/o provides 6.5 turns. Any one of these variances might represent improvement, but in addition what you have done is to lay the framework to plan how to manage each item within your dollar budgeted turnover rate. You and your people will have inventory checks and balances that will help lower cash requirements, turnover rates and old inventory. Each supplier will have been evaluated for shipping performance and your people provided with re-ordering guidelines.

December 1987
25

PERS NALS

Marlyn Green is the new home center mgr. at McGuffin Lumber Co., Morristown, Tn., according to George McGuffin. Frank McGuffin is new to outside sales.

John Lambert, Lambert Lumber Co., Lewisburg, Tn., has been appointed to the Tennessee Housing Development Agency.

Joe Swsnn, pres., Cherokee Lumber Co., Maryville, Tn., has been elected chairman of the board of the Tellico Reserve Development Agency.

Grady Haynes, pres., Haynes Brothers Lumber Co., Murfreesboro, Tn., has been appointed v.p. ofthe Tennessee Council of the National Federation of Independent Business.

Harold C. Maxwell, group v.p., building products div., Temple-Eastex, Inc., Diboll, Tx., has been elected chairman of the board of the Southern Forest Products Association. John Nichols is now vice chairman; Eugene G. Parker, treas.; Karl W. Lindberg, pres.; Lionel J. Landry, sec., and J. Carl Jessup Jr., immediate past chairman.

C. Arthur Howard. Claude Howard Lumber Co., Statesboro, Ga., has been elected a district director for the Southern Forest Products Association. Other directors include Ben M. Rooke Jr., Bowater Lumber Co., Albertville. Al.. and John Hammack, Hood Industries, Waynesboro, Ms.

John D. Hite, Walker-Williams Lumber Co., Hatchechubbee, Al., has been elected to represent treaters on the executive committee of the Southern Forest Products Association. Carlton Whittle will continue to represent laminators. New directors-at-large: John Ed Anthony, Bearden Lumber Co., Bearden, Ar.; Richard I. Carlisle. MacMillan Bloedel, Pine Hill, Al.; William I. Morrow, Manville Forest Products Corp., West Monroe, La.; Ronald Paul, Louisiana-Pacific, Conroe, Tx.; Mack Singleton, New South Inc., Conway, S.C., and J.M. Tolleson Jr., Tolleson Lumber Co., Perry, Ga.

William Keown has been appointed chairman of the board of Old Dominion Wood Preservers, Suffolk, Va.

Fred Rabe is now pres. and ceo, and Carson Johnston, v.p.

Gerald A. Jewett has been elected chairman of the board of the National Lumber & Building Material Dealen Association. Earl T. Cerpenter is now pres.; Merle Mensinger, lst v.p.; William P. Morton, 2nd v.p.; Robert K. Curtis, treas., and Hrtlen W. Hummel, sec.

David W. Lasier, pres., Schlage Lock Co., was elected pres. of the American Hardware Manufacturers Association. Drvid S. Marth is now lst v.p.; Donald W. Adams, 2nd v.p.; Lawrence E. Gloyd, 3rd v.p., and David J. Paulin. treas.

Thomes Pruitt, sales mgr., Thomas & Miller Lumber Co., Linden, Al., has announced his retirement.

John Bojorques is a new purchaser at Weiss-Hamilton Lumber Co., Largo, Fl.

Robert Ryan Hall, Snow Lumber Co., High Point, N.C., married Polly Anne Cooke on Oct.3, 1987.

John H. Mrrtin Sr., Snead's, Greenwood. S.C.. and Steve Hicks. Building Supply Center, Pensacola, Fl., were among grand prize winners in Dow Chemical's recent promotional program.

Ronald R. Ross is the new v.p. of operations at Cameron Wholesale. Waco. Tx.

Mickey Moore, National Oak Flooring Manufacturers' Association, Memphis, Tn., has been named to the committee uniting NOFMA, National Wood Flooring Association and American Plywood Association for extensive testing of subflooring products. Other committee members: Eldon Robbins, Mid-West Floor Co., St. Louis, Mo.; Ralph Costen, Costen Floors, Richmond, Va.; Ken Peterson, Georgia-Pacific, Atlanta, Ga.; Bill Boehner, Weyerhaeuser Co., and Alex Kuchar, APA.

Donald R. DeCamp, mgr., Askew Building Supply, Jacksonville, N.C., completed the 1987 management seminar sponsored by the Carolina Lumber & Building Material Dealers Association.

Jack W. Mercer is a new industrial market development mgr. for Tx., Ar., Ok. and La. for Weyerhaeuser Co., Dallas, Tx. Rick Sinquefield will cover Ms., Al., Tn. and Ky. Gary Lawson is now mgr. in Richmond, Va.

Bulldlng Productr Dlgclt

Edward T. Nesselroade has been named senior v.p. of operations at GS Roofing Products Co., Dallas, Tx. Micheel Evens is south central region sales mgr.

Chuck Creeger has been appointed mgr. of the new HomeClub on Lee Trevino Dr. in El Paso, Tx. Berry Spehr is mgr. of the Mesa Hills Dr. store. also new in El Paso.

Terry Lee Welch, Wood Protection Co., Houston, Tx., has been pro' moted to sales mgr.

Pet Brllerd, son of Joe Brlltd, Falls City Lumber, Louisville, Ky., married Dirne Whrlen on Nov.6, 1987.

Jerry Dunn is now mgr. of Sotty's, Mount Dora, Fl. New asst. mgrs. include Bob Beekmrn, Deland, Fl.: Mike Morirrty, Walsingham Rd., Largo, Fl., and Joe Zrissler, Myrtle Ave.. Clearwater, Fl.

Cherles B. Compton, Atlantic Wood Industries. Savannah, Ga., has been elected chairman of the board of the American Wood Preserven Institute, Vienna, Va. G. Howerd Colllngwood, Allied Signal, lnc., is now vice chairman: B. Corry McFrrlrnd, McFarland Cascade, treas.; Jrmcs L. Respess, Langdale Forest Products Co., Valdosta, Ga., immediate past chairman; John F. Hell, AWPI, pres., and Dienr M. Appcl, AWPI, sec.

Jerry Berton, pres., Generd Sentry Hardware Co., Atlanta, Ga., has been elected pres. of Sentry Hardware Corp., succeeding Terence L. Smith. New directors: George A. Finley III, CC Distributors, Corpus Christi. Tx.: Louie R. Devls, South States Sentry, Inc., Shreveport, La.: Chrrles E. Redmon, S&T Wholesale Hardware, Louisville, Ky.; Steven M. Keller, West Texas Wholesale Supply Co., Abilene, Tx., and Bernerd L. Fenenbock, Zork Hardware Co., El Paso, Tx.

Doris Ames, Murphy & Ames, Inc., Fairfax, Va., is recuperating at home following reoent surgery.

Generel Chuck Yetger, the first man to break the sound barrier and a director of Louisiana-Pacific, Portland, Or., and Herry Merlo, L-P chairman, were guests at a special reception in their honor held by Lowe's Cos., North Wilkesboro, N.C.

Bruce Holt is now SE regional sales rep for Clairson Commercial Display, Ocala, Fl.

Rick deTschrschell, head disparcher, Scotty's, Naples, Fl., married Dene Lee Lehmrn on Sept. 12, 1987.

Herold Mrxwell, Temple-Eastex, Di' boll. Tx.. has been named 2nd vice chairman and treas. of the National Forest Products Association's boald of directors. Don Taylor, Champion International, is a new atJarge board member.

26

Jerry rilaker has been promoted to staff v.p. of the National Lumber & Building Material Dealers Association, according to Harlan W. Hummel, exec. v.p. Mark Gallant is new as director of governmental alfairs.

Tara Leigh Whitmire is the new education and meetings coordinator.

Chris Bonner is a new trader at Johnson & Wimsatt, Alexandria, Va.

Paul M. Klocko has joined the Southern Forest Products Association, New Orleans, La., as membership director.

Pen Hyems has retired as gen. mgr. of Mid-Atlantic Cedar, Matthews, N.C., after 36 years in the business. Bill Perks succeeds him.

Lloyd Boyett, Kimberly-Clark, Coosa Pines, Al., has retired. Elwin Martin is a new sales rep at the co.

Mltch Nelson is mgr. of the new Home Depot in Douglasville, Ga.

Jack Llndenschmidt is now regional field sales mgr. for Tn., Ms., La., Ar., and Ok. for Bruce Hardwood Floors, Dallas, Tx., according to Mlke Kearins, v.p. of sales. Brende Murphy is Tx.. Ok. and No. La. district sales mgr., succeeding Jack Bostwick, who is now national training mgr.

Dean Leamsn. Home Lumber Co.. Rosenberg, Tx., and his wife, Jackie. were in the Pacffic Northwest recently.

Peter R. Dachowski, corporate v.p. and pres., CertainTeed's Shelter Materials group, has assumed the duties of pres. of CertainTeed's vinyl building products div., succeeding the late John W. Belt Jr.

Bob Goldsborough has been transferred back to Foxworth-Galbraith's Kerrville, Tx., store as mgr.

Mike Arnold is the new mgr. of 84 Lumber Co., Kingsport, Tn. Garland Shearin is co-mgr. of the Warner Robins, Ga., store.

Tom Brrksdale, Southern States Lumber, Inc., Laurens, S.C., will retire at the end ofthe year after 40 years with the firrn.

Wllllam David Sheets, sales, Lowe's, Staunton, Va., married Carolyn Gaye Callison on Oct. 10, 1987.

Mike McNamee is the new mgr. of 84 Lumber Co., Wamer Robins, Ga.

James A. Minton has been named gen. mgr. of the Big Tin Bam, West Houston, Tx., according to Jrck C. Sweeny, operations mgr.

Duncan D'Ohnutz is now in charge of coffee breaks at Mungus-Fungus Forest Products, Climax, Nv., according to owners Hugh Mungus and Freddy Fungus.

(Please turn to page 38)

December 1987
27
lrolt u WAUTER M. FIELDS I.,IJMBER Co., i'rc. 5050 Poplar Ave., suite 1200 Memphis, Tn. 38157 (901) 767-6750

The Prlme Slde

A new hardboard siding primer from Temple-Eastex Inc. is said to improve durability of the siding and not require additiond primers.

NEW PR DUCTS

and selected soles oids

The Pen That's Mlghtier

A three-in-one pen-shaped tool has been introduced by Weller.

Fueled by butane gas, the cordless Pyropen Jr. works as a soldering iron, brazing torch or hot-air tool, requiring neither a power cord nor batteries. It can be recharged in seconds and is electrically neutral.

Just 7" long, it reportedly heats up quickly and is equipped with long lasting soldering tips.

Temperature controls serve all three functions. They range from 392" to 842"F as a soldering iron, up to 806" as a hot air gun, and up to 2372'as a torch.

Tilt-A-Window

A tilt/take-out window sash and balance system for easy cleaning of outer panes has been introduced by Wenco.

The JX-7 premium tilt doublehung window's custom-designed jambliner and sash with ARLOCbulb weatherstripping between are said to virtually eliminate air inhltration.

The'clad wood window also features springloaded fingertip latches for holding the sash secure in tilted Dositions, half-inch insulating glass, md a durable sill, guaranteed not to rot, warp, crack, split or twist.

Accessories include full-frame screens, combination storm/screen units, snap-in wood grilles and custom round and elliptical tops.

Water Chaser

A 4" mini-spread wet bar faucet is new from Artistic Brass.

Earth tone colored RainPrime reportedly is 2096 thicker, reduces water penetration by more than 5006, and is twice as effective as previous hardboard primers.

Gup Board

A hardwood rack for displaying mugs is now available from Fieldstone Cabinetry.

Custom cup racks are constructed of 3/4" solid stock with 5/8" hardwood pegs..

Exclusively designed and proportioned for the 4" center to center faucet, the Corinthian style units combine black with polished brass.

Racks come in pecan, maple, oak and cherry, with a number of stain finishes available.

A Safe Finlslt

A water-based transparent wood finish that provides a water borrier and an ultraviolet sun screen is new from Excel Coatings.

Stainzit protects against wood's enemies while enhancing its natural beauty. Its unique binder system (transparent pigment and ultraviolet barrier) offers years of protection.

2A Bulldlng Productr Dlgeet

Mirror lmages

A beveled mirror wall panel system with a reported room installation time of one hour has been introduced by Mechanical Mirror Works.

Bezsafe shatterproof panels come in hve styles and in stock sizes that are expandable to fit a wall's exact dimensions.

The bags come in a number of sizes and are packaged in boxes for one-at-a-time dispensing.

Hasps Off

A hasp, consolidated from the best features of their top selling vertical and horizontal hasps, is new from Stanley Hardware.

The Lifespan 917 hasp features a post which rotates 360' for any application. An exclusive "hold open" feature allows for safe opening in its full range of positions without sudden slamming or pinching. Its corrugated leaf design makes the hasp up to twice as strong, and its

FREE READER SERVICE

For more information on New Products wilte Building Products Digest, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page number so we can process your request faster! Many thanks!

Lighting The Way

Low voltage walkway light fixtures constructed of kiln-dried all heart redwood are new from Svlvan Designs.

The foam backing on each panel is said to make them half the weight of conventional mirror panels and six times stronger, while also facilitating transport.

No special tools or adhesives are required for installation.

Cover Alls

A complete nonmetallic, waterproof cover outlet line in single and

single, one-piece knuckle concept reduces sag and adds strength while providing a quieter, tighter design. Hasps come in 2-l/2", 3-l/2". 4l/2" and 6" in zinc and black finishes. or 2-l/2" in satin brass finish. The zinc electroplate finish provides up to 250/o more corrosion resistance.

Under The Waterfall

Any bath can be transformed into a waterfall with Kohler Co.'s new wall-mounted sheet flow bath spout. Mounted 40 inches above the bottom ofthe bath, the spout sends a

two gang designs is new from Carlon.

Available in safety yellow or grey, the noncorrosive, nonconductive polycarbonate covers fit all standard plugs and receptacles. Springs and screws are corrosion resistant with a unique spring design.

Draw String Lawn Bags

Draw string trash and lawn bags are now available from North American Plastics Corp.

The Ironhold bags are made with extra strong linear low density polyethylene and feature a full, hem seal.

6" wide sheet of water cascading down.

Reportedly adaptable to any bath, the Souris model comes in polished chrome, brushed chrome, brushed nickel, polished brass, polished gold and brushed gold finishes.

By day, the 18" tall fixtures resemble a natural element of the landscape. By night, their single l8watt lamp and clear, prismatic diffuser direct soft light downward to illuminate the way without glare.

The 4-7 /8" wide light is installed by direct burial, and is easily relamped by removing the top and replacing the l2-volt bayonet-type light,

Hardwood Floor Boards

Versatile new hardwood flooring, 5/8"-thick Oak Plank, has been introduced by BiWood Flooring.

The all hardwood laminated 4" and 5" planks with a mini (2.5mm)

bevel have four separate pieces preassembled on each 8' length. They are said to go down fast and easy whether nailed, installed with mastic, or applied with a "foam cushioned" system.

The plank utilizes sliced oak veneers and comes in three shades. each finished in no-wax, easy care urethane.

An economical display, brochures, advertising slicks and a mailer are available to support the prod[rct.

December 1987
2S

Profit Panels For The Study

A new concept in high end wall paneling, the Welsh Oak Library Wall Paneling System, has been introduced by Welsh Forest Products.

The prefinished plywood panels are simulated oak woodgrain on hardwood plywood. The mouldings, fluter stiles and rails are prefinished solid red oak.

The stiles, rails and panel mouldings come in kits containing the material for a 4 ft. wall section, either full wall or wainscot only. The kits are shrink-wrapped with full instructions.

Also available is a self service rack

holding the dealer's inventory and featuring "how to" illustrations and color pictures of the room setting.

Previously, this type of wall system was said to be available only through specially designed architectural plans and produced by certain millwork houses. The Welsh system can be installed by do-it-yourselfer or contractor.

Rust Buster

An anti-rust paint that can be applied directly over rusted surfaces has been introduced by Revere Products.

Rust-Nix reportedly penetrates the rusted surface, absorbs the rust into the pigment of the paint, and seals the surface to prevent further corroslon.

Covering in one coat and drying to a high gloss, fade resistant finish, it can be applied over any metal surface, indoors or outdoors, with a brush, roller or spray. There is said to be no need to sandblast or scrape down to bare metal, just sweep away loose rust.

The product comes in nine different colors.

Lights & Lullabies

With the help of the Intermatic Walt Disney musical light switch, Mickey Mouse can lull kids to sleep with a melody.

The tunes play electronically when the lieht is turned off and the switch may be set to play one song at random or a total of six melodies. Mickey and his guitar are pictured on the switch, which plays six favorite Disney songs.

The switch is reportedly easy to install and replaces any single pole light switch.

Are You Absolutely Sure You Are Buying Your Building Materials Right?

If you have ever asked yourself - Ant I Competitive? or Am I absolutely sure I buy my Building Materials and Hardware right? Then you need C.B.S.-Central Builders Supplies Company.

C.B.S. can take the guesswork out of buying. Since 1937, C.B.S. has been helping independent building material dealers remain competitive with mammoth corporation chains. Because C.B.S. is a dealer owned non-profit corporation, all discounts, rebates, datings and advertising funds are all passed directly to the participating members.

C.B.S. Offers You These Advantages

*C.B.S. has been nationally recognized as "The * C.B.S. is dealer owned Place To Go To Buy Low"* i C.B.S. has a state-of-the-art internal commun* As you'buy more the cost to belong goes down- ication system with participating members

* t *

-not up

C.B.S. has an in-house Lumber Department Central Builders Supplies Company

C.B.S. has a Ceneral Building Materials Dept. * C.B.S. operates as a non-profit company C.B.S. has a program with the Blue Grass Tool * C.B.S. members share in the cost to operate Company

215 Broadus Street Sturgis, Michigan 49091

Phone: (616) 651-1455

* C.B.S. Rebates are paid to the members in cash * C.B.S. has an in-house Building Specialties Dept. Headquorters .[or the Allied Building Centers

*C.B.S. was featured in the February, 1987 edition of Building Products Digest

Bulldlng Producte Dlgc.t
..!||''.-l

Easy lssued Tissue

A "one touch" toilet tissue dispenser is new from Xeno Products, Inc.

FREE READER SERVICE

For more information on New Products write Building Products Digest, 4500 Campus Dr., Suite 480, Newport Beach, Ca.92660. Please mention issue date and page number so we can process your request faster! Many thanks!

Out The Grout

A carbide grout saw with a specially designed handle for controlling pressure and adding comfort is new from Goldblatt Tool Co.

The Kakudai holder utilizes two support flaps which recess inward as the roll is inserted, falling back to securely fasten the roll in place. The system also facilitates similarly simple removal.

Measuring 6-3/4" x4-l /8" x3-3/8", the holder is available in a variety of colors. It includes screws for mounting the dispenser to a wall and features a peel-off, self-adhesive back for attaching to other surfaces.

Its sharp-pointed, carbide-coated blade saves time by quickly and easily removing old, hardened grout.

Maze Masonry Nails provide an inexpensive, quick and effective method of fastening furring strips, floor plates, brackets, signs, cabinets, partition walls, etc. to masonry, cinder blocks and concrete. They are made of high carbon steel, then heat treated and tempered. Fluted shanks on the longer nails greatly increase holding power.

December 1987
. . .any Way yOU StaCk 'gm Choose boards, channelsiding, fencing, y99 ca ! depend o n.o gl q u a I ity. I * $fffJlH''.1*:::1ffi:i jl.$,i. Western Red Cedar ,*r.i----Bob Steele 1-800-523-2052 ln Oregon, 752-9618 FAX 752-5143 SPECIALIZING IN WESTERN RED CEDAR 4515 N.E. Elliott Circle Corvallis, OR 97330
WRITE FOR LITERATURE Dept. 43, Peru, 11.61354

Seals Base Lines

A blue, l/4" thick polyethylene foam sheet which acts as a gasket to seal gaps between foundations and sill plates is new from Dow Chemical.

Styrofoam brand Sill Seal's unique corrugated structure is said to greatly reduce air infiltration and facilitate compressibility.

Available in 50-ft. strips and in three widths, it is easily applied by stapling to the sill plate or by unrolling it on top of the foundation wall.

Waterproofing Products

A full line of elastomeric waterproofing products is now available from the Battley-O'Brien Corp. Marketed under the brand name SECA, the line includes caulking, clears, elastomerics and cementitious asphaltic coatings for masonry and concrete surfaces.

Open Wide

A tool for removing the lids from five-gallon containers is new from Akro-Mils.

Made of cast aluminum. the heavy duty Pop-Top tool features a long-body design to give maximum leverage needed to open the toughest containers.

Specially designed claws on its head provide a secure grip on the thin lip common to plastic lids. Crimped metal lids are easily removed with the beveled pry tip on the nail of the tool. Unused contents can be stored by resealing the lid

FOR IIORE INFORTATION GOI{TACT:

TERRY MURPHY TREATED AND WHITE LUHSER SALES TANAGER OR JIT NOYER SALES REPRESENTATIVE

with the tool's hammer head end. A hole, cast in the handle, per-

High Rise Padding

Reversible ladder bumpers with a no-mar flexible foam for use on most extension ladders have been introduced by Crawford Products, lnc.

The bumpers are said to prevent denting and scratching wood, aluminum and vinyl siding; Prevent damage to wall coverings, sheetrock or plateglass, and help reduce electrical hazards.

mits easy storage, keeping the tool handy and off the floor.

The pads are reversible in that when the ladder becomes worn on one side, the bumpers can be shifted for use on the opposite side.

They are available with "feel me" windows on packages designed for peg board merchandising.

Sky Bllnders

Venetian blinds designed for roof windows and skylights are new from Velux-America.

The blinds offer manual or electric control of the amounl of shade or light entering a room, while their egg-shell white slimline aluminum slats permit privacy in a decorative fashion.

The reverse side features a bronze Thermostop coating which stops the metal from radiating as much heat as the normal white-painted slat.

Wallcovering Kit

An inexpensive kit of basic yet essential wallpapering tools is new from Red Devil.

The Big Red's Can Do kit includes an instruction pamphlet, general purpose trimming knife, sturdy plastic trim guard for smoothing vinyl and removing air pockets, pasting brush, seam roller and plumb bob with string.

The kit is packaged in a printed polyethelene pouch. An 800, tollfree telephone number is listed for consumers to obtain advice directly from the manufacturer.

32
Bulldlng Productc Dlgest
TREATIEilrS
ALL
GUARAXTEID FOF 3(' YEARS EFrcChI" Flr. R.t rd.nl Tnd.d w@d
P.O.80X
5:n BROOKHAVEN, XS 39601 PHOilE:601-8 91911
IA}IUFACTURERS
Af,D TREATERS OF OUALITY IOUTIIERX PIXE
AYA|LAILE.23, .30,.t|o AtaD Dhl-COX XILI{ DRIED AFTER TEEATTET'T AVAILAILE
LUT!ER Ii TGEXCV IXSPTCTEO A1{D CRADE IARXEO LOADI{G TRUCTS AltO CARS Ox r.C.G. RATLROAO

Quick Quotes for 1988

A random sampling of ideas and opinions

"Housing starts will decline to 1.45 million, down from 1.6 million this year, with single-family just under one million-a drop of some 150,000 units. Multifamily will decline 160/o to about 400,000 units."

"Lower interest rates will make the difference between a shallow and a steep decline of construction activity next year."

"Industry now expects a slowdown in one of its fastest growing markets of the 1980s: repairs and alterations of nonowner occupied housing. Because of high vacancy levels, multifamily starts will decline next year to the range of 300,000 to 350,000 units."

"On balance, the stock market crash does not seem to have significantly eroded the confidence of manufacturers."

"However, if I had to pick a year that I would be worried about as far as a recession is concerned, it probably would be 1989, the year after the election."

Colton

Association of Home Builders

". . gross national product next year will probably be pulled down. We expect to ride it out."

a!atI *H I ffitf !{:

VOLLINTARY INDUSTRY QUALITY CO1VTROL BY CERTIFICATION OF QUALIFIED INSPECTION AGENCIES

At AWPB's lerboratorv, all tests and evaluations are per'formed by highlv qualified peruonnel.

of Economic Advisers

"Notwithstanding what happened with the stock market, the economy entered the fourth quarter as it ended the third, with vigorous growth."

"Housing, which has been one of the steadiest performers during this five-year economic expansion, is extremely vulnerable to any further increase in interest rates."

December 1987
33
An inspector carefully removes a core sample from wood that has been oressure-treated under the AWPIT qualitv-ctnrrol plogram.
AELUITIO. tlr | .r..si onv GROUND CONTACT WOOD PRESERVING y',mlrNcror vA

EXCllAllGlllG ideas at the National Building Material Distributor Association's annual meeting exhibits: lll Bob Martin, Al Leitschuh, association exec. vp. l2l John Campbell, Simmie Whittaker, Mark Setzer, Dick

Distrlbutors Like New Format

Reaction to the switch from table top displays to booths was positive among most of the 800 attending the National Building Material Distributor Association's 36th annual meeting.

"A couple of samples atoP a table doesn't do as much (as a booth)," commented Tom Welsh, Welsh Forest Products.

"The booths are good, the right size, not too big," added Hal Huff, Sequoia Supply.

Ron Pott, RW Specialties/Western Turnings, also liked the booths, "You've got to show the Product. I think the days ofjust talking to people and glad handing are over."

Over 150 booths were open for two days during the Oct. l0 to 13 meeting at Caesar's Palace Hotel in Las Vegas, Nv. Response was so good that 100 booths have alreadY been sold for the 1988 sessions in New Orleans, Oct. 29-Nov. l, 1988, at the Hyatt RegencY.

Educational sessions with their new ideas and suggestions for increasing profits in the building products industry were equally well received. Bill Sharp, Percon Group; Bruce Merrifield, Merrifield Consulting Group, and Glyn Jones, Can-

for Ltd., provided indepth knowledge and suggestions for industry improvement. Harold Cohen, cochairman of Somerville Lumber and Supply, gave insight into the retailer's perspective at the general session on the second day of the meeting.

Syndicated columnist ("Merry Go Round") Jack Anderson talked of personal responsibility in politics while Capt. Gerald L. Coffee, a Vietnam prisoner ofwar, shared a special message on surviving. Comedian David Brenner brought appreciative laughs at the President's Banquet on the last day.

Lindberg

(Continued Jrom page I0)

dence in the economy. Potential home buyers may retreat to the sidelines, further diminishing a market already being nicked by changing demographics. Housing starts would then be even lower than the 1.5 to 1.6 million units forecast by most analysts before Black Monday.

But that would not be so terrible a thing in 1988 as it would have been a

few years ago. That's because southern pine lumber relies less and less on framing for the housing sector. We have diversified our market by deliberately creating new demand for southern pine lumber in engineered wood systems, treated markets and exports.

The treated lumber sector is booming. In 1980, about 1.74 billion board feet of treated southern pine lumber was consumed. With the rising popularity of building wood decks and other outdoor structures, that demand shot to 4.9 bbf in 1986 and is expected to wind up at 6 bbf in 1987. Close to half of all southern pine lumber production is going into the treated markets.

Exports have also turned up. In 1986, southern pine lumber exports climbed 8.70lo over the year before. The latest data for 1987 showed that southern pine lumber exports were running 260/o ahead of the 1986 pace. Those export markets have been concentrated in the Caribbean and Western Europe, but recent developments are opening doors across the globein the Mideast, the Mediterranean and South America.

Engineered wod systems have been diflicult to quantify, if only because we are poised for takeoff in this market segment. Increasingly, architects and engineers are seeing the benefits of using wood systems for commercial construction, rather than steel or concrete. And our inroads in this segment will only be widened in the future when Reliability Based Design (RBD) formats for wood are developed and implemented. The first step down this high-tech road was taken bY SFPA in 1987 by allocating $10,000 as start-up funds for an RBD manual.

Engineered systems, exports and treated markets are thus being substituted for whatever will be lost in homebuilding in 1988 and the future.

All bets are off, of course, if the Crash of '87 brings down the economy like a house of cards. But if some measure of stability can be achieved, you can bet that southern pine's strategy of diversified markets will pay offin 1988.

Wholesaler Sales Trends

Wholesale wood products jumPed ll.2% from 1985's $4.9 billion to 1986's $5.5 billion, according to a North American Wholesale Lumber Association sales survey of its 367 member firms.

I .:9 a oi d bO E s d :. s' € o s
Thurston. 13l Clayton Barns, Oavid Ferris, Ashby Reardon. l1l Jerry Kohnker, Tom Welsh, Hal Huff. l5l Rob Heuay, Dave Hickman. 16l Joshua Ziv, Paul Hylbert. l7l Glenn Hart, 1988 NBMDA pres., Bill Axline.
Bulldlng Products Dlgert

LUMBER BUYER/SALES: 3-5 years experience. MUST have direct mill contacts to qualify. Excellent salary and exceptional fringe package. Relocation & fee paid. Maugans & Associates, P.O. Box 36802, Birmingham, Al. 3s236. (205) 987-7s82. Recruiting for the forest product industry.

Twenty-five (25) words for $19. Each additional word 65d. Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $5. Box numbers and special borders: $5 ea. Col. inch rate: $4O camera ready, $45 if we set the t)?e. Names of advertisers using a box number cannot be released. Address replies to box number shown in ad in care of Building Pmducts Digesl, 4500 Campus Dr,, Suite 480, Navport Beach, Ca. 92660. Make checks payable to Cutler hrblishing, Inc. Mail copy to above address or call (714) 852-1990. Deadline for copy is the l5th of the month. PAYMENT MUST ACCOMPANY C'OPY unless you have established credit with us.

IMPORT VII\fft FLOORING

1500 rolls (90,000 square yards) 6'x 90'all first_ quality. 15 patterns. 870 per square yaro.

Shaw Wholesale Company $ol) 767-6464

P.O. Box 2474, HoI Springs, Ar. 71914

IErs TAtK FACIS

INTERESTED IN WEST COAST

CEDAR & REDWOOD ITEMS?

For sidings call Leonard Newman or Doug Willis. For spa and sauna items contact Phil Heim or Doug willis. Call Product Sales Co. (714) 998-8680. Please see our ad on paqe 4

F:ACT #t:

Cascade Empire is a service oriented company that stresses quality in both product line, and personnel. We're looking lor a few special people who already successfully trade Forest Products, as office wholesaleri and have the facts to back up previous experience.

tACl #2:

We have a few facts of our own. In addition to an unlimited earnino potential, we provide our people with these additional benefits: A 401--k savings program, life, health, disability, and dental insurance, Section 125 Flex, business expenses paid and incentive lravel trips for our top producers.

WHAT'S NEW?

You'll know when you read The Merchant Magazine, reporling every month on the trend-setting West. lt'll keep you current with industry news and developments, new products, marketing, merchandising and management techniques in the l3 Western states, plus important national developments. Sister publication of the Digest, The Merchant Magazine covers all the West and has for 63 years the proven source for what's new. A yearly subscription is only $9, two years for $15 and three years for $20. Subscribe today so that you'll know curren( condi(ions in this imporranr marketplace. You'll be glad you did. Just send cash, check or money order to The Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.

FACT #5:

We try to keep it simple. You trade - you earn. You must be experienced in order to lespon! to this ad, you musl have a proven record of top production, integrity and be a team player. We're looking for a perfect matih -your skills and our needs.

Our main office is in Portland, Oregon, with a branch in Newport Beach, California.

FACI #4:

_ We're serious and we hope you are. Reply to me personally and let's talk facts - including the possibility of adding fou to the Cascadd team.

1-800-547-8371

December 1987
Advertising
HERITAGE BUILDING SYSTEMS 1-800-643-5555 NATIONWIDESALE gtx4ox 10....................33,'185.00 4Or6Ox 12....................t6,275.m50r75r'12 .......t9,186.00 60rimx14 S13,895.m Comm!rc|d stel bulldingr wnh gdElumc 2Gy41 mmnly 20# ml, color 90 lrPtl mll8, cngl|B drmp€d p6mh dwing!, wtth 3lm drndtd da mlbble. FOB lectory, Clll for fc
b@huB.
35
Corporotion 4900 S.W. Meadows Road. Suite 400 Lake Oswego, Oregon 97035

Product promotion is our challenge

El nEPARING an industry foreF cast is always risky business. The week I sat down to write this article. the stock market wavered with record losses and record gains, making any attempts of forecasting seem even more reckless than usual. The business of building is inextricably linked to availability of money for constructionwhether it is a developer

building a shopping center or a homeowner adding a deck to his house.

I'll gladly leave the debate about the availability of that money to the

financial experts. Since a Primary purpose of the California Redwood Association has always been promotion, I prefer to concentrate on the promotional challenges facing the redwood industry.

Product promotion is a valueadded service that can take many forms. The goals are to make potential customers aware of your product and then convince them that they need it. This can be accomplished many ways, but the key to effective promotion is always the same: Understand your customer's needs. The mills aren't the only ones promoting redwood and realizing the prohts. Wholesalers, in all pars of the country, have discovered that the promotion of redwood results in higher profits. Time and again, retailers have proven that profits

gtow when they offer service, advertise projects and provide how-to information.

There is plenty of comPetition out there. Redwood and pressure treated lumber compete in the deck and outdoor living market. There is competition from other wood species and other materials in the siding and interior paneling markets. And the competition is not standing idle. They are mounting Promotion campaigns of their own. Still, in everY inaifetwhether it is outdoor living or siding, new construction or remodeling, commercial or residentialredwood offers advantages not available from the competition.

The promotional challenge for 1988 is the same for everyone in the business of selling redwood lumber. We must understand our customers' needs. and we must Provide solutions to their problems.

Story at a Glance

Best promotions lneet cus' tomer's needs... mills, whole salers, retailers all gain from promotion... Profits grow with service, proiect advertising

CURTNDR-PABITER LUMBER COIUPANY

lSite, Business, and lmProvementsf

Extensive Manufacturing Capabilities

Annual Sales in Excess of S2,500,000 Family Owned Business since 1932

Holcombe & Fair lBrokersf

P.O. Box 668 Charleston, S.C.294Oz

734 WHITE STATION TOWER BUILDING

36
Bulldlng Productr Dlgert
Retail Lumber and Buifding Supply Business in Charleston, South Carolina FOR SAtE
Camle Anderson Diron
NORTHERN . SOUTHERN APPALACHIAN HARDWOODS KILN DRIED SQUARES
"'ryni:f'siiEi:f'' H

Continued growth in '88

I r ls HARD to conceive a more I dramatic economic event than "Black Monday," the Oct. l9th record drop in the U.S. stock market. Fortunately, what happens on Wall Street does- n't necessarilyrule the economy. The stock market is an imperfect forecaster of economic activity. In the words of WWL& nsls( economist Paul Samuelson. "Wall Street has predicted nine of the last frve recessions."

After effects of the stock market

Mor6teirle

decline may be slower spending by the consumer and a reduction in capital expenditure programs, but lower interest rates will help restore confidence as 1988 unfolds.

Story at a Glance

Economy will grow but at a slower rate... 1.5 million housing starts. lumber consumption off 34Yo.. higher prices for products and transportation.

will remain soft in 1988. Lumber consumption is assumed to decline 3-40/o to about 48 billion bd. ft. in 1988.

The forest products industry has enjoyed a record year in 1987, with both lumber and panel products reaching all-time demand levels. This has been reflected in increased product prices and industry earnings. Expectation for continued high demand in 1988 will undoubtedly continue the upward pressure on industry prices, as well as transportation prices, to meet the increased equipment and service demand.

Big W Backs Olympics On TV

Weyerhaeuser Co. will be a major TV sponsor of the 1988 Winter Olympic Games in Alberta, Canada.

Mafestlc Columns for a Llfetlme of Grace and Beauty

Genuine Marble Particles, Polymers and Fiberglass Form an fuchitecturallytue Entasis Taper.

Marbleine Means a Virtually maintenance-free, Matte White, Paintable Surface in 6'. 8'. 10' andl2'Widths, and lengtfs to 18'.

WESTERN TURNINGS & STATR CO.

5301 Vasquez Blvd. Commerce City, CO 80022

(3031 295-7609

Our economy has its problems with budget deficits and imbalance of trade payments, but it also has shown remarkable strength for almost five years. We believe the economy is sound and, since 1988 is an election year, it will continue to srow but at a slower rate than in TggZ. fhe risk of a recession will increase sharply in 1989 as a weaker U.S. dollar causes a rise in prices and inflation and federal spending cuts enforced by the Gramm-Rudman bill further reduce a stimulus by government spending.

U.S. housing starts in 1987 will be about 1.65 million units and are assumed to decline about l0o/o to near 1.5 million units in 1988. Mortgage interest rates are expected to average 50 to 100 basis points above the 1987 level as fears ofinflation increase. Also, as the "baby boom" generation gets older, family formations are slowing and shelter demand is reduced accordingly.

Single family construction, which has been 1987's bright spot because of trade-up demand, will bear most of the industry's decline. Regionally, all sectors of the U.S. will show less new home construction with the Northeast and California markets being the most active, followed by the Midwest and South. Repair and remodeling spending again will be strong in 1988 as homeowners repair and expand instead of moving. With vacancy rates averaging 60/o for industrial buildings and 160/o for downtown oflice space, industrial, commercial and oflice construction

A series of 30 second commercials is being prepared for viewing on ABC Television during the games, Feb. 13-28. An estimated audience of 25-30 million Americans will see the commercials at least 28 times.

WESTERN TURNINGS

WONDERAIL

Patent442l3O2

Beautily Your Staits

Balcony

r Adjusts to any angle

r Preassembled as single unit

o Fast, easy, stong installation

o Hemlock or Oak

o Raillengths to 14'

32" & 35" heights

o Ready to finish

o Hardware included WESTERN TURNINGS & STATR CO.

December 1987
37
il
Vasquez Blvd. Commerce Citv, CO 80022
Adiusls...from this ...to this, aulomatically!
5301
(303\ 295-7609

Obituaries

Donald Murray Hughes, manager of the Hechinger Co. store, Sterling, Va., died Oct. 17, 1987, of heart failure in Fairfax, Va. He was 49.

Born in Washington, D.C., he joined Hechinger in 1954. He was the company's first Manager of the Year.

Mr. Hughes is survived by a son, a daughter, a brother and a grandchild.

Melvin L. Anthony, a former principal at Anthony Forest Products Co., El Dorado, Ar., died Sept. 19, 1987, in Shreveport, La., after a lengthy illness. He was 74.

Born in Hopeville, Ar., Mr. Anthony joined Anthony Forest Products Co. in the 1930s. remaining until his retirement in 1972 as

plywood plant division manager. He co-founded M&B Lumber Co.. Nashville, Ar., which he sold in the mid-1970s.

He was active in various lumber associations, serving for a number of years on the board of the Southern Pine Inspection Bureau and on the American Plywood Association board of trustees from 1970 to 197 4.

Mr. Anthony is survived by his widow, Vera, a son, two sisters, and five brothers.

Roy Edward Hilton, owner of the Roy E. Hilton Lumber Co., Oxford, N.C., died Oct. 6, 1987, in Durham, N.C., after a brief illness. He was 56. A native of Davie County, N.C., he started in the lumber business working for his father's E.C. Hilton Lumber Co. in the early 1950s. He founded his own company l0 years later.

Mr. Hilton is survived by his widow, Margaret, his mother, one son, seven brothers, and one sister.

Personals

(Cotttinued J'rom page 27)

Roger Higgins has been named distribution center mgr. at Carolina Canadian Lumber Sales, Spartanburg, S.C., according to Gene Foust, c.e.o.

Bert E. Elliott, v.p., roofing products operating div., Owens-Corning Fiberglas Corp., has been elected pres. of the Asphalt Roofrng Manufacturers Association. He is succeeded as chairman of the executive committee by outgoing ARMA pres. Roger H. Bengtson, v.p. and gen. mgl., roofing systems div., Manville Corp.

R.J. "Dlck" Dougdl has been named mgr. of marketing communications for Heil-Quaker Corp., LaVergne, Tn., according to Chrrles L. Shettuck, v.p. of marketing.

Southeast Scene

(Continued from page 24)

sonnel knowledge of various standards and grades of lumber, methods of purchasing lumber, difference in species and their uses, handling and storage of lumber and lumber specifications will be given twice in December. Dec. 8 in Manassas and Dec. 9 in Richmond.

A retail building material management seminar will be held Jan. l2-14 at Charlottesville. An intensive three days of classes, it is for both the experienced and the new owners and top manage-

P.O. box 2300 Foir Ooks, Colifornio

9s628

(916) 965-rrr9

(800) 894-5878ro1 ftee

ment of building material firms. Emphasis will be on spotting management problems and dealing with them.

A full day seminar on managing for financial results is planned for Feb. 10, also in Charlottesville. Top and middle management, owners/managers and management trainees will be targeted in this workshop which explains new ways of presenting financial statements that are more informative and easier to understand.

The education committee is considering a series of in-state and out-of-state mill and plant tours for members and their employees.

FOR INFORMATION CONTACT

George Hovooros, pres. Rick Hovooros, v.p. Lee Rou-rlin. soles Jem; UJilcor, soles

LOnO' ilulo7k lne.

One of the notlon's lorgest wholesoler of quollty plne & fir mouldings, fromeo, jombs ond trlmrolld & fingerJoint Domestlc & lmportedIncluding thlrty truckloods of controlled productlon per month.

€T PRSO, TX. OFFIC€

Tr (800) 423-0868

(9r 5) 886-s741

Steve Drongsholt. Arnold Smith

Ixutrr mdrT CEI:E-I l$Sliltii![,'"ffil tssocr^It rIISEn
38
Bulldlng Products Dlgc.t
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Advertiser's
Index Allrood Industrids, Im................ 25 Americrn Inbrartlond Forest Itoducts, Inc. ..................Cover I Ameriqn Wood Preservers Bureeu...... 33 Arizonr Prcific Wood Presery|ng........ 2f Bern Lumber Co.. Cun ................19 Beverly Menufrturing Co........,..... lt Crscr& Emplrc .........35 Cenhd Builders Supplic's Co. ..........30 Cole & Assodrles, Jobn T..............35 Columbus Lumber...... .....32 Curtrrer-Prrler Lumtcr Co. 36 Duke City Lumber Co..................lt Fields Lumber Co., Wdter M...... .....27 Glen Oek Lumber & Milllng ...........22 Holcombe & Frir. .............36 Jordrn Redtood Lumber Co., lee Roy ..27 Lrkewood Treeti4, Inc. .....t2 Mertin Forest tndustrles ...............U Meze Ndls .............31 Mouldi4 & Milhork, Inc..............3t Nrv{o Forest Pnducts Industtes.'..... 23 NorthSete Lumber .......31 Prcific Lumber Co. ..................17 P&M Cedrr Pmducts.................5, 7 ProductSrlesCo.. ..............4 ProfitMrster Al Southern Gulf Tnnsport................6 Welsh Forest Produc'ts, Inc. .............3 Western Turnings & Stair Co. ..........37 Whonnock Industries. ...Cover IV
$ Buitdinq '"r * Kr*rfM*%r f{eo 9- .z "ffi ig';$:'{ FJ W:TW .rrq-.'+'-:l--r' 2.-, )*z Classified 6$ ",qlK )t:A":i l:*t:-{ '";:tffifr .!.$.$tu ffiffi*s* W ffi wffist rffi d {o"-" ry
.c^) {(,.,

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Building Products Digest - December 1987 by 526 Media Group - Issuu