We've always considered our forests to be a precious natural resource, which we respect and treasure. Few people realize that most of the old redwoods are preserved in our state and national park, and almost half of these trees have come from the Pacific Lumber forests through the Save The Redwoods League.
When we harvest the trees we grow in our private forests, we always follow the strict rules of the California Forest Practices Act. And we always will, because the rules are there in everyone's best interest. We grow all the trees, that we cut for lumber, in our own forests.
Although the stump of a harvested redwood tree grows back as another tree, we annually plant over 750,000 redwood seedlings to insure a perpetually green and growing forest.
The forest is a natural resource that everyone must use wisely so that it can continue to benefit our country for generations to come. If you would like more information on forest conservation or would like to visit a Pacific Lumber mill, please write the Forest Manager at the address below.
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The END TALLY is a very lightweight hand-held computerwhich allows the user a friendly means of collectingtallyinformation. TheENDTALLYpromptstheuserthrougheachstepof thetallyfunction with information prompts displayed on the large four line screen.
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After bundles or loads have been tallied, the user can produce detailed reports by connecting the END TALLY to a printer. These reports may be printed on each bundle or load broken down by Species, Grade , Thickness, Length, Total Pieces, and Board Feet. Load reports are produced_for eich shiprnent detailing all bundles which make up a customer load. Where requested, the END TALLY willprovide dry tb green Board Feet conversion based upon the gair/loss percentage entered, and print these conversion totals on the reports.
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BUILDING PRODUCTS DIGEST is an independentlytwned publication fur the renil, vvholesale and distibution lerzkbf the lunber and home center marktts in 13 Sowhem swes.
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I N THIS Business Forecast issue we're pre- I senting some of the top people in our industry telling you what changes they see for 1989. And in our rapidly changing world it seems at times as if the only constant is change itself.
Yet, for all the dizzying change in our world, there still are things that remain the same. Human nature is one of them. Taking a long perspective, looking at the countless convolutions of mankind, we still see that human nature from Day I to the present hasn't changed. We don't expect it will. either.
Business strategies can and should be based upon the more predictable aspects of human nature. People are mostly interested in themselves. They want to know what is new, what threatens them and what can produce something they need or want.
People care, to varying degrees, about what others think of them. Many home improvement
projects have been propelled more by what the neighbors think, than for true homeowner benefit. Retailers, who can play to this desire for peer approval, realize they have a powerful motivating force working for them when they sell this concept.
Successful wholesalers have Iong realized that, for many of their customers, dependability of supply can outweigh a slightly higher price. They have found that their customers are more interested in being assured of a reliable, steady supply of product than facing the anxiety (more human nature here) of not knowing when or if the shipment will arrive.
One way to play to human nature is to put yourself in your customer's shoes. Think about the transaction from their perspective, not yours. You'll be on your way to putting the basic drives of human nature to work for vou.
Responding to recent reports of strength failures involving fire retardant treated plywood, CSI, Charlotte, N.C., has issued a statement regarding their product, D-Blaze.
In April, 1987, the American Plywood Association advised the wood preserving industry of reports from the field of several buildings experiencing retardant treated plywood roof sheathing failure due to loss of strength. The APA inspections of the roofs of the projects found examples of severe loss of plywood strength.
This strength loss was attributed to three factors: unusually high roof temperatures exceeding 150'F; very high humidity conditions in the attic space, and use of second generation fire retardants. Inadequate ventilation was thought to be the cause of the extremely high temperatures and elevated relative humidities found in the roof areas of these buildings which were two to three years old.
Since these problems were made known, CSI, according to Fred L. Omundson, vice president, marketing, has carefully monitored and investigated all aspects of the problem. D-Blaze treated material has not been involved in any of the projects reported or investigated by APA.
Furthermore, he emphasizes, there have been no reports of structural factors of any kind with DBlaze treated material in service. "When used in accordance with our published design and use recommendations, D-Blaze treated wood products will perform to the design specifications intended," he concluded.
Lowe's has opened its l8th and second largest store in Kentucky in Glasgow.
The store, which has a 32,000 sq. ft. consumer sales floor, has a separate entrance, sales area and stafffor contractor customers. Extended opening times include evening and Sunday hours.
James Ciaburri, a 10 year Lowe's employee, is manager. His staff includes Anthony Depriest, retail sales manager; Larry Sutfin, warehouse manager; John Riley, assistant warehouse manager; Nancy Vaughn, office/credit manager, and Bill Hopper, contractor sales manager.
E DO not expect any dramatic changes in the performance of the building products industry in'the coming year. The progress we make will be based on our abilities to continue improving the efficiency of our operations and product quality, producing higher-value-added products, and developing new markets.
Building products manufacturers and distributors were affected in 1988 by declining housing starts and continued low pricing for many products, and we see these market trends continuing into 1989. We do believe, however, that there remain good opportunities for growth and
Y- protitability rn thrs indusiry.
With low prices for panel products still persist persisting, one
of the best ways we can maintain or improve profiti'is by continuing to upgrade our operations with new technology, thus lowering our production costs. This could be the key to survival for many manufacturers, since housing starts are expected to remain at 1.4 million to 1.5 million during the next year.
New developments in the use of computers in order processing and electronic data transfer will make information transfer more efficient and accurate. The Universal Product Code also is gaining in use and will help to improve inventory control for both manufacturers and retailers.
Improved technology has provided wood products manufacturers with the means to produce mole high- quality specialty products such as nine and ten foot siding, high-grade lumber and smooth-face particleboard used in furniture, which are in increasing demand. These specialty products will continue to grow in importance in years to com-e and, because of the higher prices they command, offer another way to maintain or improve profitability.
Another component of future success will be selling our products more aggressively. In recent years, the building products industry has progressed from being primarily manufacturing driven to focusing more on market demands. At Georgia-Pacific we have responded to this trend by developing products such as shrink-wrapped Iumber, which offers customer convenience. We will continue to pursue other opportunities to improve customer servrce.
Customer service will become even more critical. An anticipated decline in demand from some market sectors next year means distributors will have to be more innovative in their sales approach and their product offerings. As we all are aware, the competitive nature of the building products industry has never allowed marketers the luxury of letting products sell themselves.
No dramatic changes ahead... improved technology. moderate growth . . more specialty products 1.4 to 1.5 million housing starts. repair and remodeling market will hit $100 billion.
One area that will continue to show strength is the remodeling, repair and additions market. Georgia-Pacific expects annual industry sales to this market to reach $100 billion by the end of 1988, and to grow at a moderate but consistent rate in the coming years. Growth op- portunities also are seen for industrial wood products markets such as panels used for cabinets or readv to assemble furniture. New market opportunities overseas are opening up as the U.S. dollar maintains a lower level in relation to other major world currencies.
Even though growth in building product markets is top-quality products.
expected to moderate in the comi expecreq ro mooerale rn comlng year, manulacl and retailers still will be able to profit by concentrati facturers allu suil oe aotg r.o prolt[ oy concentraung on the fundamentals and making a commitment to produce
Y THE TIME the Dec. issue of Building Products Digest appears, this country will have elected a new President.
It is almost certain that a tax increase, effective in 1990, will occur as our country continues to spend at even higher rates. This increased spending trend is evidenced by the 1988 deficit being higher than the 1987 deficit, ver-sg! an $80 billion reduction in 1987 from 1986 levels.
The country cannot continue to incur $150 billion annual deficits and. in fact, our interest Payments on this massive debt account for much of the current deficit. After eight years of Reaganomics, it is apparent to me that this economy, with its present governing body, cannot grow out of these deficits.
Tax increase almost certain changes needed to stimulate growth sluggish retail environment limit on corporate mergers probable.
Two changes need to occur to stimulate a higher rate of growth and a decline in the national debt:
(l) Real legislation attacking the spending policies which may have short term negative results on retailing, particularly important is the "line-item" veto.
(2) Revision of the capital gains tax which, when lowered, creates jobs and fosters capital formation.
It is extremely interesting that Secretary Baker is exploring a sliding scale capital gains tax based on how long investments are held. I believe this theory truly holds promise and would be an effective use of taxation as a method to set policy in the business community.
As for retail environment in 1989, sluggish would be my description. Recently there have been several studies which I feel correctly represent that the public has a significantly greater amount of discretionary income than they had in 1980. However, 1989 could well see the negative impacts of:
(l) Rising interest rates and inflation;
(2) Continued consumer credit growth which must abate to increase consumer liquidity;
(3) Erosions in consumer confidence that higher tax legislation fosters.
The other area which I believe will be addressed by Congress is the current wave of corporate mergers. Recently we have seen over $60 billion in takeover activity. Congress has generally been willing to take on those issues which do not directly impact their constituency. It is here that I believe Congress will act, through taxation
policy again, to limit corporate reorlanizations by setting iapitllratios and the deductibility of acquisition interest. -This will effectively preclude the pure leverage players from the takeover and sell-off activities of the past six years. In enacting this legislation, Congres.s will be "savins" iobs in America while at the same time increasing tuies"to lower the deficit.
The good news would appear to be that the Texas economy will continue to diversify and improve and to us who ieside in the Lone Star State that change is most welcome.
I lOOf towards the coming year with mixed feelings ! of apprehension and optimism concerning the future of the independent retail lumber dealer. The changes occurring "on the Hill" as the new adminstration moves tna.., & in ruill nlrrrinrrslrr hqrre q srcet irnnect in will obviously have a great impact on not only the retail lumber dealer, but on the entire country. As the l0lst Congress begins, there are several key factors which I feelwill in part determine the success of retailers across the country.
One important key to the independent lumber dealers' market in 1989 will be interest rates. Obviously, the key player to watch here will be the Federal Reserve Board. While
Interest rates crucial for independent dealers. housing policies of the 101st Gongress will be important. . . repair & remodefing a growth area... material costs to rise.
Another key ingredient to the success of the independent lumber dealer is the action that the l0lst Congress takes to lessen the burden of the large Federal deficit. Higher taxes may indeed be one solution to the debt criiis, if the funds are used in the appropriate manner. However, higher taxes are also likely to inhibit consumer spending. '
The housing policies of the 101st Congress will be important. It would appear that the.move will be towards encouraging new low to moderate income level housing projects, as well as the renovation of existing vacant buiiOings. While the current proposed policies are a positive move in the fight for the homeless, the bureaucratic "red tape" that may be involved could be too burden-
some and costly for some independent lumber dealers.
It is clear that housing has become less affiordable for the average American family. A sector of the population which has been notedly affected is the first time home buyer; homeownership has dropped close to 1006 for households in the 24-35 age group. Tax incentives for the first time home buyer will become an important issue for the industry in the coming year.
With the increased cost of housing comes the growth of a second and valuable market for lumber dealersrenovation and remodeling. This is clearly a growing opportunity for the independent dealer, and one which should not be overlooked.
It would seem to me that the cost of building materials will continue to rise, particularly in regards to dimension lumber. The recent disastrous forest fires, coupled with the proposed environmental programs to limit the depletion of certain federal forest land, could result in lower supply.
Although it is doubtful that we will see tremendous growth this year in the building material industry, the ingredients are there for a strong and steady year. The actions of the l0lst Congress willundoubtedly be critical to the overall success of the industrv. However. with effective marketing strategies, financing, and qualiiy service, the independent retail lumber dealer should continue to command a dominant share of the building materials market in 1989.
Our view is that wholesaler - distributors' bottom lines will depend more on operations and strategic planning than on mill prices, interest rates or demand. In some cases, size and growth will be one answer to profitability. l:or others, it will depend upon assured supply or niche-marketing,
Falrly stable Interegt rates, good export markets, pretty good demand, adequate sup- ply.. .sotter houslng actlvlty but better remodellng demand.
In all cases, personnel with a high level of professionalism will be a factor. Producers and distributors who can "grow" their customers will do well. This might involve sales volume but in many instances it will require growth of services, of people and of management. Our good customers will more often demand additional and better services. Our bad customers will never be less important to us.
Good opportunities will be there for the taking in 1989. None of them will come easv.
H
eN one approaches a forecast of business activity
UU for forest products in 1989, he or she might consider the general economy, interest rates, international trade, demand, supply, and housing starts. Then, for good measure, include the national elections in the U.S. and Canada.
The answer to all of the above is that 1989 looks pretty good for the forest products industry. It is unlikely that any ofthese areas will be great in the coming year, but they will all be pretty good.
Whoever the new President is in January, it is doubtful that there will be much impact until the end of 1989 or beyond. Should Prime Minister Mulroney be returned to ofllce, it will follow that the U.S.-Canadian Trade Agreement willbecome reality. That would be a plus for forest products trade.
We foresee fairly stable interest rates, a continuation of good, if not great, overseas export markets, pretty good demand and adequate supply. Our crystal ball for housing starts for 1989 is 1.4 million. This may mean softer housing activity but better remodeling demand.
The industry is heading towards some serious timber supply problems, but we don't see this as a factor through the first three quarters of next year.
Unfortunately, our "pretty good" scenario is only part of the profitability equation. Will 1989 demand command a market level for producers faced with higher raw material costs? Will the distributors of these products have a good 1989 with the continuing problem of inadequate margins on many lumber products?
By John P. Mikulak President National Wood Window & l)oor AssociationTHE 1989 demand for residenrial windows is ex- I pected to increase, with patio and exterior doors holding steady and the interior door market softening, according to a McGraw-Hill/LSl Systems study spon-
.. sored by the NationalWood Window 5r and Door Association.
Although new housing activity has been declining, growth continues in the single-family, detached housing market, projected to comprise 620/o of the total new housing market in 1989. The study, which contacted I 5,000 households nationwide, indicates that demand for windows will increase by 20/o to 41.7 million units, while demand for patio doors will remain at the 1988 level of approximately 4.8 million doors.
In 1987, sales of wood windows, including vinyl and metal clad units, exceeded sales of aluminum windows
Window demand will increase 2o/o... patio doors hold steady at 4.8 million.. interior door demand down 3o/o... more doors and windows used in each home.
for the first time in both the new construction and remodeling/replacement markets.
This trend is expected to continue through 1989-90, according to projections made by Ducker Research Company, Inc. for the American Architectural Manufacturers Association.
Due to the forecasted decrease in housing starts, interior door demand in 1989 is projected to be 33 million units, a 30/o decrease from 1988 levels. Exterior doors are expected to reach approximately eight million units, the same figure as in 1988. Still, renovation and remodeling will continue to have a significant impact on demand for residential interior and exterior doors.
While the overall market for these products is expected to soften somewhat over the next year, demand for exterior doors in renovation and remodeling is projected to increase 3%, bringing the units sold to 3.7 million.
According to the NWWDA study, the trend toward bigger and better homes is still strong. Builders are expected to place more windows and patio doors than before in both the single family attached homes and in single family detached homes, both of which continue to grow in popularity.
By William T. Robison President American Plywood Association
HE STRUCTURAL panelindustry has the potential to substantially enlarge its markets in the next quarter century.
As late as June the overall market outlook was strong enough to support a forecast of 27.2 billion sq. ft. of U.S. structural panel production in 1988. This small increase over the 27 billion feet of 1987 would have been the sixth consecutive growth year for the industry. But through the late summer and early fall there was a weaker housing market linked to rising interest rates. Although demand in other major panel markets has continued to be strong, the home buildevent us from achieving that sixth ing decline may prevent consecutive annual production record.
Big structural panel market expansion in next quarter century. nonresidential, home repair & remodeling, industrial uses all growing increased diversification necessary.
Next year, APA expects a continuation of higher interest rates, which will keep housing subdued, but not crippled. Some other markets may also moderate slightly, resulting in a down year for total demand.The outlook beyond 1989 is brighter as interest rates are expected to decline with inflationary threat receding. APA is projecting a short and modest market decline starting now and ending in early 1990.
With continued hard work and commitment to growth at home and abroad, the structural panel industry has the potential to substantially enlarge its markets in the next quarter century. Increased diversification will be necessary. Non-housing markets for structural panels have advanced by 1.6 billion sq. ft. per year since 1984, becoming the major factor enabling mills to expand demand in a period of declining housing starts. Domestic markets like nonresidential construction, home repair and remodeling and industrial applications are growing steadily as a direct result of APA/industry promotional teamwork.
The valuable international markets for U.S. structural panel products are expected to play a much larger role in the 1990s. In the years ahead, the panel industry will expand its promotional base into Spain and other Mediterranean countries, thus increasing its strong commitment to Europe as the primary overseas market. High priority will be assigned to promising emerging markets in the Caribbean as well as Japan, other Asian countries and parts of Latin America.
There are serious challenges to overcome in the years ahead. The senseless rationing and impoundment of America's abundant renewable public timber resource is an obstacle which we must battle. But with continued commitment to the broadening of the market base as well as developing more cost eflicient products, we'll beat the odds and maintain the healthy growth that enables us to better serve our customers at home and abroad.
A LTHOUGH my crystal ball is no clearer than any- lrl one else's in predicting what lies ahead for the hard- Fl rn wnat aneao narowood lumber market in 1989, I remain mildly optimistic judging from my impressions at the recent NHLA convention in New Orleans, La. Everyone is very much aware that the U.S. economy has been expanding for the past 60 months. It is totally out of step with the historic trend of a cyclical economy, which enters a recession usually in cycles of three to three and one-half years. Because demand for hardwood lumber, both at the industrial level for pallets and packaging and at the consumer level in fine furniture, flooring and architectural millwork, depends entirely on the general health of the economy. When the economy is good and the work force fully employed, demand for all products increases and the industrial hardwood market gets hot. At the same time, when everyone is employed, consumer discretionary income goes up and furniture purchases and remodeling projects eat up a lot of hardwood lumber.
During the NHLA convention we heard a knowledgeable economist, Sarah Meyerrose of First Tennessee Bank, Memphis, Tn., point out that many of the economic indicators point to a slow-down in the economy. However, Ms. Meyerrose herself noted that one year ago at the NHLA convention in Washington, D.C., following the stock market crash of Black Monday, Senator
Sam Nunn in addressing the NIILA general session made much the same prediction: that the year ahead offered a poor prospect for the U.S. economy. Senator Nunn could not have been more off the mark. and Ms. Meyerrose's qualilied her predictions on that basis. l)uring the past three months the index of leading economic indicators has first fallen. then risen slightly. and in the most recent months recorded, fallen slightly again. This unusual behavior is confounding economists and is another characteristic of this long drawn-out economic expansion. The (iross National Product is still growing, although growing at a slightly lower rate in the last quarter. So while the indicators out there are that the expansion of the LJ.S. economy is slowing, the majority of economists believe lhat a recession is unlikely in 1989. Add to this prediction a factor important to the hardwood market. the significant increase in hardwood exports during the past two years. The hardwood lumber market is no longer a domestic market, but entirely a world market. Perhaps as much as one billion dollars in sales will go overseas in 1988, up from approximately $750 million in 1987 - another record. This overseas market can cushion for a time any reduction in demand in the domestic market.
lf you read the weekly price newsletters that are pub-
By Karl W. Lindberg President Southern l;orest Products Association
-QeVennL years ago, the strategy of the southern rYpine lumber industry resembled an Ohio State football team: three yards and a cloud of dust through the middle of the homebuilding market. No more.
Today, the industry relies less on framing for the housing sector and more on diversified markets such as engineered wood systems, exports and treated products. In football terms, we spread the defense. We are harder to stop now in any one sector.
That's an important change in strategy if you believe what economists say is in store for the nation in 1989. The conventional wisdom is that after the shakeout of the presidential election, the Fed will begin a serious move to tighten credit to rein in the soaring deficit. That could push the economy to the edge of a recession. Housing, already weakened by changing demographics, is projected to fall below 1.3 million units in 1989.
Southern pine industry braced for 1.3 million housing starts. treated products use will grow. exports rising engineered wood systems use increasing.
Hot Industrlal & consumer hardwood markets. overseas sales could reach $1 blllion oversupply, lower prices willcontlnue In'89.
lished in the hardwood industry, you can see that some species in some grades are selling at lower prices than in recent months. Analysts attribute this not only to conservative inventory practices at lurniture plants, but also to the real efliciencies in the hardwood lumber industry. l-umber prices are a function of both changes in demand and changes in supply. At this point in time it appears that the hardwood sawmiller has added enough capacity through second shifts and additional machinery coming on line to produce more lumber than the market will bear at this time. Therefore, the recent downturn in some prices is more attributable to an over-supply situation than falling demand and may continue this way through the first of the year.
h,ngineered wood systems, exports and treated products are being substituted for whatever might be lost in homebuilding, plus some extra demand for southern pine that development of these market segments has enhanced.
All this is not by accident. Four years ago, a Marketing Marathon program was launched, designed to boost demand for southern pine lumber by 1.4 billion board feet a year at the end ofthe fifth and final year ofthe program. In 1988, a year ahead of schedule, we crossed the finish line. We are still running, now pushing back the finish line as a new Marketing Marathon is planned for r 990-95.
The booming treated markets alone burst the 1.4 BBF tape. More than 6 BBF or 5006 of total SP production was treated, compared to only 200h back in 1980. Decks, gazebos and other outdoor wood structures took the bulk of our treated products. We think our promotion of porches will add to that total. A growing amount of treated SP is flowing into wood floor and foundation systems and exports. And as soon as research is completed, we expect treated SP to play a key role in replacement of thousands of timber bridges.
From January through August, SP exports were running 830/o ahead ofthe hot pace for 1987, and had already exceeded the total volume for the last year. SP design values, grades and sizes are now part ofthe British standards. The Caribbean is winning converts to wood frame construction, and we are coordinating use offederal assistance programs to build and promote southern pine tourist facilities in the Dominican Republic. The doors to the Middle East are opening, particularly in lraq, thanks to hard-working trade missions and aggressive members.
Engineered wood systems are the wave of the future and we have been riding the crests. Southern pine has been out front, pushing for reliability based design, which will assure a state-of-the-art design format for architects and engineers responsible for trusses and other components.
That would stuff the three-yard run through homebuilding. But thanks to our more balanced offense, the SP industry would still have several ways to move the ball.
Southern Pine can strike from several formations now. If the market tightens up in '89, we can pick our plays carefully and take what the defense gives us. If the economy manages to escape a recession, we can run up the score.
HIS has not been a particularly good year for the construction industry despite a continuation of the longest peace-time economic expansion, and a resurgence in business investment. Few measures of construction activity have even managed to keep pace with 1987 growth rates, and most indicators have fallen behind last year's levels. With slower economic growth being the consensus outlook for 1989 (highlighted by a weak consumer), the construction industry is likely to face yet another difficult year.
The economy through most of 1988 has grown at an above average pace, thanks to strong improvement in the trade deficit and a surge in business investment. Consumer spending has held firm through much of the year, with the only apparent weakness emerging in the early fall. Steady gains in employment generated a steady increase in income, and with the unemployment rate at or near a 14 year low, consumer confidence ran at a high, steady level.
Another difficult year. . flat growth, over supply, continued high interest rates. slowdown likely even in hot building areas.
Businesses have enjoyed strong orders for new output, paced by increasing export demand. The level of capacity utilization has risen steadily during the period, particularly in dollar sensitive areas such as chemicals. This has prompted high investment in equipment for productivity, which in itself adds to growth. In the foreign sector, the decline in the value of the dollar since early 1985 apparently came to an end, as the trade deficit made a long slow turn upward. Taken as a whole, therefore, the economy has performed remarkably well in the wake of last October's stock market crash.
Unfortunately, the construction industry has not fully shared in this general economic prosperity, and the prospects for 1989 look no better. Rising interest rates from the Federal Reserve, Tax Reform disincentives from Congress and a near glut of unfilled oflice space have created an uninviting environment for construction that is likely to carry over into the coming year.
That is not to say that all regions and cities will experience poor construction activity. The Washington, D.C. area is one ofthe hottest sections ofthe country for new building, and 1989 should be no different. However, some slowing from the torrid pace of the past several years is likely. Unfortunately, other areas have used the extended period of relatively low interest rates (since 1984) to over-build, and there are currently a number of commercial buildings on the auction block.
As a result, the outlook for construction activity in the Southeast is not encouraging for the coming year. General projections of economic slowdown and continued
high real interest rates, combined with over-supply mean an unattractive market for many builders. While a major falloff in this sector is considered to be only a small risk, growth in many areas will be flat, and contractors will have to wait, and hope for a stronger market in 1990.
By James Scott President Brown Mouldine
ECAUSE the consumer perceives a higher value and receives valued benefits from the product, more mouldings go into homes today than 5 to 10 years ago. Where once only door casing and base mouldings were
ings are used, as well as multiple patterns. To offset some of the higher costs of these larger patterns, a swing in the mix from solid to fingerjoint patterns of approximately 5% per year has been seen in the last couple of years.
Though the housing market is expected to decline and the general economy may slow down in the coming year, the moulding market should remain strong. This is due to the growing amount of moulding put into new homes as well as the expected growth in the remodeling market.
The remodeling and d-i-y markets are trending toward the more decorative and architectural moulding that has traditionally provided a higher margin to dealers.
As the long term outlook for the housing market shows a decline, the future of the moulding industry rests in the d-i-y and pre d-i-y markets. Lumber yards and home centers should direct their energies toward solving their customer's problems and meeting their customer's needs.
More moulding per house plus remodeling market growth bolster outlook more use of fancy, high margin mouldings by d-iyers moulding shouldn't be sold as a commodity.
Today, many people are concerned about holding inventory levels down to keep companies as liquid as possible. But remember, you can't sell from an empty moulding bin; no inventory usually means no sales. Customer perceptions are the key. If your firm is perceived as the one who meets the needs of the customer, then you willget the call. Every company has a constant battle against its own decline in giving attention to the needs of the customer. Research customer needs, and make every effort to meet them.
Moulding is not a commodity. The different uses of moulding, the different methods of merchandising, and the high value placed on moulding by the customer, make it a dynamic product line. Stock it, display it, train your sales people to sell it and you will reap the benefits.
I f If'S true thar the past is prologue to the future, the I hardlines industry is in great shape to continue its impressive rate of growth even with increased competition and a gradually maturing market. The challenge for retailers will be to get a fair share of their segment by implementing action plans based on consumer research.
Simple to say, but obviously not as simple to do. In the hardlines industry, working hard is a "given," but it will be "working smarter" that will determine success todav and in the future. That includes utilizing technology to its full advantage to reduce costs and free personnel to do
a better job of selling. lt also means being in stock, selecting and- training good employees in a shrinking labor pool, fine tuning merchandise assortments, communicating benefits to customers, knowing your business and those you serve, and doing it better and less expensively than your competition.
Over the past several years we have seen an emphasis on ".new ways" to go to market and "new concepts" of retailing, many of them based on price alone. Some have been successful; many others are now a painful part of hardlines history. While new concepts wiLl always be an
T HE BUILDING products industry has faced numer- r ous challenges over the past decade. Direct buying, increased competition and an unpredictable economy have played major roles in the modernization of the building products distributor and manufacturer. Today we are faced with an even greater challengeeducation, which affects our industry at all levels.
with the last of the "baby boomers" entering the work force, a shortage of young professionals is evident. Business technology is changing with new demand on employees. A competitive business environment places emphasis on education to improve and refine employee productivity.
Shortage of people entering industry long range program needed. hard times possible.
intriguing and necessary part olour industry, more conventional. but more professional ways of dding business will receive greater emphasis in the future, Quality, value, customer service, competitive prices and good selection will be words we will hear often as consumers become more knowledgeable and sophisticated.
Hardllnes Industry growth contlnues... worklng smarler wlll be vltal... professlonallsm must be emphaslzed.. flercer competltlon.
As distributors, we too must be in touch with the needs of the retailers we serve and provide them with a total retail support program to help them to prosper in this more competitive and maturing market. And we can do that by being better listeners. by providing the forum to let retailers in different regions df the country identify their concerns.
There is a sense of excitement in the future of this industry, and that excitement comes from identifying the challenges we face and being able to turn them into opportunities for even greater growth. The rewards will be there for those retailers committed to excellence in merchandising, store design, advertising, employee service, product knowledge, training and customer service those retailers who know their store, their markets and how to sell and service their customers better than their competitors.
(lomprehensive education is needed for the industry to prosper. The association believes it has no greater responsibility than to help companies find answers to educational problems. Aflter more than a year of research and planning, we have established the Education Foundation, dedicated to advancement of the building products industry.
This program will meet the industry's education challenges to address critical education concerns. Programs will be directed at flour major areas: ceo, owner, operator; operations management development; sales, and manufacturer/distributor.
Innovative and needed programs such as a comprehensive audio/visual series on management topics and inside sales training will be developed. A building material distribution management institute will be organized at a major university. Aimed at mid-level managers, it will teach disciplines for advancement to senior management.
Seminars will be held to train employees in sales and marketing responsibilities. Scholarships, identification of college programs to prepare students for building products distribution and management positions, and establishment of building products distribution programs in educational institutions will ensure quality professionals entering our industry. A program to publish research studies and articles will benefit both professionals and the industry
The correlation between continuing education and business success is understood by those companies which enjoy prosperity. However, the lack of apprecia- tion for this correlation could very well forecast hard times for others.
FTER an improved 1988, general market activity in redwood is expected to be slightly offin 1989. While dramatic shifts in interest rates are not foreseen, slowly rising rates will likely influence new home construction, with as much as a 120lo decline in new home starts.
On the positive side, however, one of redwood's biggest markets, home repair and remodeling, should experience the same strong demand next year. According to the Census Bureau, Americans spent $37.3 billion on alterations and improvements on single family homes in 1987. In fact, homeowners spent a third as much fixing up existing homes as building new onesa trend which augurs well for redwood, a mainstay of the do-it-yourself market.
Given redwood's high performance standards, and, to a lesser degree the public's concern over toxics, homeowners and contractors are likely to look at redwood as an increasingly viable alternative to treated wood for deck construction. As a result, we expect to see growth in demand for redwood decking products outside of the
T ue HOUSING market is not a doom-and-gloom r forecast for 1989, but overall production will be less than expected.
Housing starts that reached 1.8 million in 1986 and 1.6 million in 1987 are now in the 1.4 to 1.5 million range in 1988. Several factors are contributors:
(l) Higher fixed and variable mortgage rates. Fixed rates were at 10.5% at mid-year, and by comparing the l2-month averages, fixed rate mortgages were 34 basis points higher in 1988 than in 1987.
sales have fallen 6.90/o and new home sales have declined
6.40/0. lt is very likely the downturn in sales has negatively affected housing starts.
Single family starts will outpace multis higher fixed and variable interest rates home ownership rates decline.. single family homes get bigger, use more material.
traditional Western markets, specifically in the Midwest and East.
The development in the coming year of structural ratings for appearance grades of redwood could also strengthen demand. Adoption of such standards would broaden the market base considerably and allow us to compete more effectively with existing structural grades of other species.
Over the past year, Simpson has also made substantial improvements in tight knot siding products. Coupled with price and availability, these changes should positively influence specification and use across the country. For other air seasoned/P.K.D. common grades, tighter grading, improved yardability and product appearance will add to overall popularity and customer acceptance in'89.
Redwood hot in $37.3 billion remodeling market more growth in decking newstructural ratings will accelerate demand.
We remain concerned about increasing environmental pressure to restrict or halt old growth redwood harvesting in California. Legal challenges and regulatory bottlenecks may result in reduced product availability and increased cost over the long term.
(3) Multi-family starts are likely to be low in the foreseeable future due to overbuilding in some regions and the impact of tax reform.
All regions are showing declines in permit activity this year. Permits in the second quarter of 1988 suggest that the Midwest and West are still fairly strong but that the Northeast may be showing some weakness.
Single family activity, driven by trade-up demand, continues to remain stronger than multi-family. Multifamily starts rose 120/o at mid-year, but permits fell by an equal percentage.
Home ownership rates remain fairly constant at the national level, but vary considerably by region, age, income and family composition. Among young households, the home ownership rate has declined steadily since 1980. In the second quarter of 1988, the overall ownership rate remaine d at 63.70/0, the lowest rate in two years.
The median size of single family homes is increasing, up from 1,680 square feet in 1986 to 1,755 square feet in 1987. In addition. the number of bathrooms, bedrooms and amenities per house continues to increase.
Despite the trend toward increased amenities, use of brick as an exterior siding has been declining. Vinyl siding has become the exterior siding of choice and has doubled its share of the exterior market in all regions except the West, where stucco remains most popular.
Gypsum wallboard continues to remain the most specified interior finish material in new single family homes with 930/o of the total wall area finished with gypsum wallboard. Six percent of all interior wall area is covered with plaster-coated gypsum wallboard. Eighty nine percent of all gypsum wallboard used is l/2" thick.
Total new residential construction demand for gypsum board is expected to be 8.92 billion square feet in 1989.
A.ias,em Lumhtr ('orp. has closed and liquidated Tanrpa, lrl., and Charlotte, N.C., locarions and filed for Chapter I I bankruptcy protection (see p. 38 for story)
Travis Lutnber ('o. has a new southern pine lunrber mill in Mansfield, Ar., Jinr (iarner, mgr. Berger & ('o., Sacramento. Ca.. has closed its El Paso, Tx., oflice
Patriot F-orest Produt'ts is a new wholesaler in Brunswick. Ga.. manned by Mike Dowdy, f:laine Clark and Wayne Stewart McCoy Lumber Cb., Greensboro, N.C., has a new sales olfice in Ashland, Va....
llechirtl4tr plans new stores in Colonial I leights and ('harlottesville. Va....a new llome Quar/t'rs has opened in Augusta. (ia. lclsing bids arc being acceptecl for Rrudlcts stores acquired by llct'ltinlr'r ( o. in Vu.
lulc .\acurit), lnc., ('harlotte, N.('.. has acquired Ri.xsort-f irellar*. ('hicago, ll. ., a managenrcnt group is ncgotiating a buy- oul <rl' ('luirson lnternatiortul ('oryt., Ocula. l;1.. a dcal valued at more than $35 nrillion . .
lJxtwn Moukling (\t., Montcvalo. Al., has added an 8th distribution operation in Peoria, ll., augmcnting IX's in lloffnran, N.(l.l San{orcl. I:l.l Shreveport, l-a.; [-ouisville. Ky.: I:lridge, Mcl.. anrl 'Icmplc. Tx.
I-ox,t,'s will open a new store in (lhattanooga, Tn., next April: grand reopenings have been held fbr Sanford. N.C.. and (lookeville, Tn., stores; remodeling is underway at Corbin and Richnrond. Ky., units . .
Gnrgiu- Put'ilit' ('orp.. Atlanta. (ia.. has acquired Wool)-l-Ream. Ocala, l;1. Unired .\tutas .9tove. ('hattanoogil, Tn., has acquired Miraclt, Ittat, lnt., (iladestone, Mi., and is consolidating production ol'its products at their present mlg. ftrcilities in Bridgeporr, Al., and Ohattanooga
McCo.v's Lumber. San Marcos, Tx., has a new yard in Jonesboro, Ar. .lohn Oox Lumber, Houston. Tx.. is now a distributor for Rou,i USA. Inc.
Bill Hayes, Tim Chappell and Brooke Ackiss has opened a soulhern pine wholesale opera- tion, Tar River Wood Products, Nashville, N.C....
Carolina Builders Corp., Raleigh, N.C., plans to add several units by July 1989 . West Orange Lumber, Winter Garden, Fl,, has relocated in new quarters . 84 Lumber, Plainview, Tx., is protesting annexation of its property to the city
lJuikleroma, Savannah, (ia., has added an installation dept. Hughes l-untber Co., Ponca City, Ok., has completed a nrajor remodeling. . ('ordelt, .Sash, Door and Lunber (ir., Cordele, (ia., held a grand reopening after renrodeling . .
The Par1, (i;. is expanding the "lrit Kids" program which it sponsors with East Tennessee .\tate Univarsit.v in Johnson City, Tn., picking up a $30,000 tab ... Builderwa.v Inr'., has remodeled stores in Anderson and Greenville.S.C....
The Franklin, N.C., Lov,e's celebrated its l0th anniversary . . . Lowe's stores in Oklahoma City and Ponca City, Ok., and Port Orange. Fl., have been closed Lowe's Cbs. received a Gold Nugget National Energy Conservation Award presented by Honeywell ...
The Nutiottul lssot'itttiott o/' the Ramoduling lttltt.str)' has formed a new local association, I,l aRI ef Middk Tcnn(ss(e. in Nashville. Tn....
T.l Intcrnational Inc. is ranked 3lst in lhe Forbes Magazinc list of the 200 best small companies in Amcrica. their second consecutive year on the list
Stores selling products for the home are growing as nruch as 9l%, laster than other retail operations says Kurt Barnard, Retail Morkcting Report. New York
Housing starts for Oct. (latest ligs) were up 7.2"/, to a seasonally adjusted annual rate of 1.55 million single family starts increased 10Vo: multis, a bare 0.20lo; building permits, 7.40/o starts in the south were up 4.601, .
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What intrinsic factors distinguish highly successful DIY/home improvement businesses? How will modern technology improve bottom-line profits? What ingredients are key to customer satisfaction? How does OSHA's new standard affect store managers? These questions will be addressed during The National Home Center Show, March 12-15. at Chicago's McCormick Place East and North.
Fourteen programs will be led by leading business and industry experts. Highlights include the "Great Encounter," featuring "ln Search of Excellence" co-author, Tom Peters; "The State of the Industry," led by acknowledged industry gurus whose combined sales top $5 billion; and the all-new "Lunch and Learn" series.
Four of the most acclaimed industry innovators will panel the State of The Industry session, Frank Denny, ceo, Builders Square; Bernard Marcus, chairman, ceo, The Home Depot; Hal Smith, chairman, ceo & president, Ernst Home & Nursery; and Robert Strickland, chairman, Lowe's Companies, Inc.
The show's new "Lunch and Learn" series offers buyers and merchandisers, as well as store and department managers,topics including a how-to session on complying with OSHA's Hazard Communication Standard and give-and-take sessions with two of the industry's most respected consultants, Joe Samulin and Steve Herman. For more information about "Lunch and Learn" registration, contact William Fishman, director of education and special events, 619/485-'7500, FAX 619/485-7502.
Other sessions scheduled include: "Overcoming Roadblocks to UPC Scanning;" "Export Now," "Innovations from Overseas;" "Preparing for EDI;" "Cashing in on Installed Sales;" "Pathways to Success for Independent Home Centers."
The National Home Center Show exhibition will feature over 1,300 exhibitors, Sunday, March l2 through Tuesday, March 14 from 9:00 a.m.5:00 p.m. and Wednesday, March l5 from 9:00 a.m. - l:00 p.m.
From America's Renewable Resource, our employees take pride in manufacturing quality wood products for Americans' use in particleboard, paper products, decorative bark, f irewood, crates, pallets, doors, windows, mouldings and home construction
They don't waste
!
Bulldlng Materlrl Merchrnts AssoclrtlonDec. t, "Budgeting the Bottom Line" seminar, BMMA Training Center. Austell. Ca.
lnternrtlonel Hrrdwood Products AssochllonDec. 9, regional meeting, Ramada Hotel, New Orleans, La.
Mld-Amerlcr Remodellng f,xpoDec. 9-10, Kansas Ciiy Market Center Exhibition Hall, Kansas City, Mo.
Bulldlng Meterlal Merchants Assoclrtlon - Dec. ll-13, product knowledge seminar; Dec. 14, selling skills seminar, Austell, Ga.
Lumbermen's Club of MemphisJan. 5, installation of officers,luncheon, Racquet Club, Memphis, Tn.
Bulldlng Materlal Merchants AssoclatlonJan. 6-7, buying show, Georgia International Trade Center, College Park, Ga.
ServistarJan. 9-ll, lumber market, Marriott's World Center. Orlando. Fl.
Kentucky Lumber & Building Material Dealers AssocietionJan. l1-12, convention, Hyatt Regency Hotel, Louisville, Ky.
Internatlonal Fence Industry AssociationJan. 11-14, annual convention & trade exhibition, Marriott & Rivergate Convention Center, New Orleans, La.
HWIJan. l3-14, winter building products market, Stouffers Hotel, Orlando, Fl.
Nationrl Housewares Mrnufacturers AssociationJan. 15-1E, international housewares exposition, McCormick Place, Chicago, ll.
Mid-America Lumbermens AssociationJan. 19-20, estimating school, North Little Rock, Ar.
National Association of Home BuildersJan. 20-23, annual convention & exposition, Atlanta, Ga.
General Hardware Co. - Jan. 2l-22, Sentry Super Show, Marriott World Center. Orlando. Fl.
CC DistributorsJan. 2E-29, Sentry market, Hershey Corpus Christi Hotel, Corpus Christi, Tx.
Kentucky Lumber & Building Material Dealers AssociationJan. 30-Feb. 2, framing/estimating seminar, Fort Mitchell, Ky.
General Hardware Co.Feb. 4-5, Sentry market, Palmetto International Exhibition Hall, Greenville, S.C.
Central Builders Supplies Co.Feb. 8-9, annual buying show, Commonwealth Convention Center, Louisville, Ky.
Carolina Lumber & Building Material Dealers AssociationFeb. 9-11, annual convention, Convention Center, Charlotte, N.C.
Southern Decorating Products ShowFeb. 10-12, Opryland Hotel. Nashville. Tn.
Mid-America Lumbermens Association - Feb. 14-18, annual convention/exposition, Bartle Hall, Kansas City, Mo.
" ...1.37 million housing starts in 1989, a 5 to 60/0 decline from the 1.45 to L50 million starts expected this year."
David Seiders Chief Economist National Association ofHome Builders
"The deficit outlook is more of a moral issue than an economic issue not too likely to cause any economic devastation over the shorter term."
Rudolph Penner The UrbanInstitute
"The most profound impact on housing finance will occur in the political and policy arenas."
Martin Regalia Vice President & Director of Research & Economics National Council of Savings Institutions."We have reached and passed the cyclical turning point for this downturn."
Cahners Economics
"Residential building will be squeezed in 1989 in both the one family and apartment sectors."
GeorgeA. Christie
Chief Economist McGraw-HillInformation Services Co.
"Retailers must adjust their expectations. a good performance is not a double-digit gain. It's 60/o or 20/o after inflation."
Rosalind Wells Chief Economist National Retail Merchant Association"Although radon is well established as a cause of lung cancer, it is not yet clear what the nature ofthe increase in risk is at the lowest levels found in homes."
Dr. Stuart L. Shalat Professor of Medicine and Epidemiology Yale University"Housing inflation has depressed our economy, frenzied our psyches, divided our society. A turnaround would be nerve racking, but no bad thing."
At AWPIT's labolatorv, all tests ernd evaluations are perfolmed by highly qualified personnel.
Post
Michael Kinsley Columnist Washington"This year appears to be the last hurrah for single family housing."
Bill Fishman & Afliliates
11650lberia Place san Diego' ca' 92128 considered unacrvertisabre. The more imaginative find ways to work them into print.
I f HnS not been easy rhroughout the I years to maintain a fresh approach to the week-in week-out advertising for home centers and building material retailers. After all, we're basically in an industry lhat is as old as mankind , the shelter industry.
Although during any given week the ads for f)oors, walls, ceilings, siding, fencing, and those things that attach to, stand in lront ol, or hang from them will attract tralllc to the store, retailers constantly seek the new and different to presenl to the homeowner. When my monthly package of clip ads arrives, I rip through the ads looking for the new and unusual.
Three cheers lor those creative stores that find and promote 'em. Many of these items are already in stock but are
llere are some lrom my latest package of tearsheets:
.]-STI]P ENTRY KIT WITII I-ANI). lN(; - Lowe's, North ('arolina wOOI) RAlt-lN(; SYSTEM
('hannel, Maryland
l)O(; tlOtJSh llandy l)an, I louston
TV ANTENNA - l.owe's. Indiana
MARIILFI ClllPS - llandy l)an, I louston
WORK GLOVITSNational [-umber, Los Angeles
Sn I:F-TY GO(;(;t-trs - O'Malley's, Phoenix
FRUIT IIARVESTFIRNational Lumber, Los Angeles
VIDtlO RECORI)lN(; TAPUllandy Day, Houston
(:lllMNEY (lAP - Levy's. Louisville (;ROMMSTEI) TARP - ljorest ('ity, I)etroit
IjLIJORES('F-NT Ttlllt:S - Rickel. Maryland
t.ON(; llANl)t.t: ('l:lt-lN(; ljnN ('l-l:ANER - Yard llirds. ('alil'.
t,Nl)ER('Ot,NTI:R RA('KS
Sutherland, Ohio
('tlAlNSAW ('llAlNS - (i.1. Joe's. Oregon
ljRAMEl) POSTLR ARTMr. (iood Buys, Pennsylvania
BtJN(;t'.E ('OR|)S - Pay 'N Pak. Seattle
STANI)IN(; CONT RACK
llechinger Co., Washington l).C. OCTA(;ON WlNI)OWS - Triangle
lluilding Centers, Pennsylvania
ROOF WINI)OWSWickes [.umber. I;lorida
swlN(;tN(; PATto t)ooR - 84
l-umber, Maryland
IJTILITY TtJB - Payless ('ashways, Texas
ROOF' I)UCTIN(; KIT - Menard, Iowa
CONCRETh BLOCK l:OR SllEt-VING - Ernst, Tacoma
ELECTRIC LEAF'F-ATF,R
Central Flardware, St. Louis
ACCORI)ION I)OORS llome Depot, California
LOG trl)GlN(iBuilders Square, Florida
Granted that items such as these will not bring in the total sales budget for the week, they will increase the readership ol the ads and attract those readers who are shopping for basics. It is items such as these that help a store to establish their dominance in a product category.
Walk your own aisles to find unusual candidates to promote. lf you can't find any in stock, there's a good possiblity you're losing touch with your customers.
Virginia's Sunday closing law has been declared unconstitutional by the Virginia Supreme Court. The law had existed since 1610.
"We're very excited about the decision," commented John W. Hechinger Jr., president of Hechinger Co., one of the companies that fought the law. "lt proves what we've been saying all along, that the blue laws were unfair to shoppers and businesses."
741623 Dallas, Tx.75243
ll o vnrrER what the florecasters l! and prognosticators say about next year, sales and profits will still be generated by the effective use of people and assets. The fittest will survive.
Here are 10 questions (with comments) to help you determine how your people and assets were employed this past year:
(1) Did your company own and make available to all employees a college level text book on retailing?
(lfyou answer no, you're running a space station without an owner's manual.)
(2) What formal classes or seminars relevant to your business did You and/or your management attend?
(Doctors, lawyers, teachers, etc. are all required to hone their skills.)
Other than on the job training and indoctrination, how manY hours of formal (non supplier) training were provided by your company for each of your employees?
(Grow people and the rest will follow.)
How many employee suggestions to improve your operation were received and/or adopted bY Your company?
(When I talk. I don't learn anYthing.)
Excluding public relations and incentive travel plans, how much was spent to tell your customers whY they should buy goods and services from your company?
(How can anyone know how good you are unless someone takes the time and makes the effort to tell them.)
What are the names of your customers who consistently appear on the
list of Receivables over 60 days old?
(Most companies lose all Profits somewhere between 30and60 daYs.)
Did you read the clocks on your fork lifts so that you knew how manY hours per week each was used?
(Effective is 25 to 30 hours Per unit per 5 day week.)
How many items (other than sPecial orders and which ones were they?) produced less than four unit sales each ?
(Turnover at 8 to l0 times is verY doable; average is 6 times.)
(9) Using Delivered Sales onlY, on average. how much in dollar sales was delivered with each of the company's trucks?
(Over $1,500,000 is verY doable Per 2 to 2-1/2 ton truck.)
(10) How much were the comPanY's non-payroll taxes?
(One examplesales of $1,500'000 at 2o/o pre-tax, non-PaYroll taxes were $10,000. ComPanY's first $500,000 in sales was needed to pay these taxesone-third of its annual volume.)
There are no right or wrong answers, just your answers. Whatever you come up with, you will be better off if Your people and assets are more deftly employed each year.
Given the choice of clean or moldy .'l'ood, your cuskrmercu'ill preflerthebrightern'ood eve4' ttme. For ther goori mone1,,, moldy u'ood just doesnt ltasf fP Fre'^shlv CCA prersire-treaied lumber is highly susceptible "to blacli mold. Especially u'hen-it's treated nou'forspmg delirery But" ififs treatedu'rth rnprov-edstrength'\loldex"'. it always slays gleqr.r and bright' R.eoue.st from t our su ppliers \ loldex-treated u'ood thdt displal's itre Good-l-ooking \\'ood-label on each bundle. Thht uar: the wood you order for lreatment todrl'uill arrive next spring frt'e of mold.
For more ffirmation aboutThe Good-trnking Wcrod, call 1-800 421-8661, Toll Free. Or urite usat CSf One Wxlcllaun Green,CharlotteJC r"r,:!
Florlda l,umber & Bulldlng Mate- rlal Dealers Assoclatlon is inviting members ol the building material industry to join rwo study rours of the building material industry abroad.
The first tour will headquarter (ilasgow and Perth, Scotland. Julv 28. visiting surrounding areas. Thi second tour will visit (iermany including the lllack l:oresr, July 27-Aug. 4.
Oklrhomr Lumbermen's Assoclrtlon board of directors will meet on Dec. l5 at the Marriott Hotel, Oklahoma City, with Harold Merrill, Owasso Lumber Co., Owasso, presiding as new president.
Jay McKissick, Overlees-Woods Lumber Co., Bartlesville, is the new vice president.
New directors are Jim Cavanaugh, Hope Lumber Co., District t; frant
Boerstler, Kennedy Lumber Co., tnc., I)istrict 2; R. Michael ..Mike" Ridgway, l)urant Lumber Co., I)istricr 3t C;tenn Nusz, Residenr Lumber Co., Disrrict 4: tl. Mike Cooper, Forest Lumber Co.. I)istrict 5l Brad Cart. Cart's l;arm and llome Supply, Inc., I)isrrict 6. Calvin R. "Cal" Briney, Tamko Asphalt products Inc., and Kenl Cornwell, Lone Star lndustries, are new associate directors.
OLA's Spring Marr .89 will be held March l8 and I9 in the llalt of Modern Living Building ar rhe Oklahoma Citv I"airgrounds, Oklahoma Citv.
Mississippi Bullding Materlal Dealers Association, Inc. has reservations for most ol the exhibit space at its March 23-25 convention and trade show. Activities will take place at the Coliseum Ramada Inn, Jackson, Ms.
Kentucky Lumber & Bulldlnj Mrterhl Derlers Assoclrtlon is ollering its members an educational program in cosponsorship with the Illinois Lumber and Building Marerial Dealers Association.
Instructors will be provided by the Western Wood Products Association. Topics include framing-estimating, Jan. 30-3 l and [ieb. I, at the Drawbridge tnn, l:ort Mitchell, Ky. A speed estimating seminar will be offered Feb. 2-3, also at lhe Drawbridge Inn, with a retail sales seminar slated lor early March in Paducah, Ky.
Mld-Amerlca Lumbermens Associatlon's Oklahoma dealers are in the process of forming MLA/Oklahoma young Lumbermen.
A steering committee has been named to guide formation plans. Several organizational meetings, including one on Nov. 30 at the Meridian Plaza Hotel. Oklahoma City, have been held.
Pat Sullivan is the MLA young Lumbermen coordinator. Members ol the steering committee include Vince Haney, Philtips-Haney Lumber Co., Adal Carl Frie, George Ollie's Lumber Co., Pocola; Mark Wofford, Wagoner Lqmber Co., Wagoner; Andy Cun-
ningham, Tahlequah Lumber Co., Tahlequah; Hank Benson, Benson Lumber Co., Pawhuska; Doirg Walker, Crescent Lumber Co., Crescent; Mike Curtis, The T. H. Rogers Lumber Co., Cherokee; Joe Hurd, Pixley Lumber Co., Claremore; Kelly Schoenbelen, Starr Lumber Co., Woodward; Henry Bockus, Gordon White Lumber Co., Oklahoma City; Gary Ketcham, H. E. Ketcham Lumber Co., Muskogee; Gary Smith, Smith & Sons, Anadarko, and John Henkle, Grand Country Homeworks, Grove.
Building Material Merchants' Association of Georgia and Alabama is sponsoring training seminars this month in management, product knowledge and selling skills for members and nonmembers.
"Budgeting the Bottom Line" will be
84 Lumber Co. expects to reach one billion dollars in sales this year.
Much of the credit is given to its travel incentive program, 84 Globetrotters. "These trips are 1000/o better than cash for motivating employees," explains Joe Hardy, president and founder.
The travel program, founded in 1971, gives employees and their spouses a chance to travel to luxurious, exotic locations. It operates on a $l million annual budget or approximately $3000 for each couple traveling. The 1989 trip will be to Casa de Campo in the Dominican Republic.
Scotty's will increase the number of items stocked in its full line stores from 15.000 to 25.000 in the next year.
This was one of the changes outlined for stockholders attending the first annual meeting since GIB Group acquired 430/o of the stock last summer.
"Our financial results and level of business activity eventually will show improvement," P. Scott Linder, chairman since August, advised them, "but as we've noted before, our performance may fluctuate this year as we strive to solidify our basic business."
He said the company will attempt
the topic ofa session presented on Dec. 8 at the BMMA training center, Austell, Ga., by Bill Lee and Norville Spearman. Participants are limited to owners and general managers of 30 companies. The instructors, who have long careers in retailing and the building supply industry, will offer individual guidance in preparing 1989 business plans.
Erv Goodroe, BMMA executive vice president, will instruct the product knowledge and selling skill sessions, Dec. I l - 14. Using 26 years experience, he has developed a generic program to insure that the product knowledge seminar will not be a sales presentation.
Lumber, plywood, millwork, paints and stains, paneling, gypsum insulation, siding, ceilings, roofing and specialty items will be covered Dec. 11-13 at the association training center. Selling skills will be offered on Dec. 14. Students may enroll for one or both seminars.
to boost its profits by concentrating on the full-line stores, increasing builder and commercial accounts and stressing the convenience of Scotty's hardware stores.
One new director and four incumbents, including two who were named as interim members in August, were elected. Amand L. Van Roy, a retired GIB executive, joined the board with Linder; John B. Ellis, Atlanta; Diego Y. du Monceau, GIB executive, and Ronald Rashkow. chairman and eco, Handy Andy Home Improvement Centers Inc., Chicago, being reelected.
Police in Washington, N.C., have charged a Lowe's employee with embezzlement and staging an attack to cover the loss.
Detective John Taylor arrested Linda Sue Gurkins, 32, following interviews at the police station. Detective Capt. Danny Boyd said the woman has been charged with one count of embezzling$1,640 from the store. The money was recovered.
She allegedly fabricated a story that a black man wearing a ski mask and carrying a knife forced her to open an office safe. Police were told that he had hit her on the head with an office tape dispenser. Although the store was open, no one else reported seeing the robber.
She was freed on a $3.000 bond.
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GEEMINCLY confident that t-good times will hold into 1989, more than 400 dealers at the 72nd annual National Lumber & Building Material Dealers Association convention sampled a smorgasbord of business topics including bar coding
and economic theory.
Bar coding was a phrase heard repeatedly in conversations and seminars. Although adoption of the concept is thought by some to be inevitable, bar coding of lumber won't be accepted easily judging from the
schism in opinion developing between d-i-yer and contractor-oriented dealers. National, already working with wholesalers and manufacturers on the project, sought dealer input with a bar coding questionnaire included in convention materials.
D-i-y is still the growth market with growth departments related to remodeling: lumber, doors, windows, millwork, kitchen and bath project materials, Harry Franta, Home Center Magazine, told dealers attending a seminar. More needs to be done to attract women shoppers who originate the majority of the projects and carry out a fair number of them, he added.
Merle Mensinger new presF dent. bar coding of lumber a hottopic ...1.45 million housing starts forecastfor 1989 industry changes, the economy, computers covered by speakers. Oct.'89 meeting: Nashville, Tn.
Pointing out that 250/o of the top chains have changed hands within the last four years, he stressed that an LBO costs lots of money. Payless Cashways, he said, needs to do $3 million a week to pay the interest on their LBO debt. Despite chain growth, single unit stores still predominated at a ratio of 800/0, according to his figures. Customers, he told his audience, base their selection of a store on product needs, although price still outranks quality as the top buying factor.
Cahners economist Kermit Baker, although not optimistic about housing, projected 1.45 million starts in '89. He sees more single family detached houses, fewer condos and rentals being built with high growth in the custom building.
Lumber markets will shift away from the traditional housing, he told the dealers. Remodeling and repair will be strong.
Nationally, he counts the deficit as the No. 1 problem with the balance of trade becoming better. He believes the economy will continue strong through '89 with interest rates declining after a peak near the end of this year.
Speakers in numerous seminars urged and advised those attending to teach their sales people to sell, cut insurance costs by utilizing pre-employment physicals, use computers to their best advantage and make rack-supported buildings and rack components work for them. A seminar on drug dependency, attended by both spouses and dealers, zeroed in on recognizing the problem and offering help for employees needing it.
Incoming president Merle Men-
singer and outgoing president Earl Carpenter were saluted at a poolside reception preceding the presidents banquet on the last evening of the Oct. 13-16 meeting at the Wyndham Hotel and Conference Center, Palm Springs, Ca.
Other new officers elected: William P. Morton, Hazard, Ky., lst v.p.; Robert K. Curtis, Ballston Spa, N.Y., 2nd v.p.; J. Howard Luck, Manassas, Va., treas. Carl Tindell, Knoxville, Tn., was elected region 2 v.p.
Awards from the board of directors went to Howard Guss, J. Howard Luck, H. Wayne Meyer, James R. Perrin, B. Harold Smick Jr., Carl Tindell, Roger Scherer, James Beardall, Joseph Arndt, Billy Thompson, Evalena Mayo, Joseph Orem and Edgar Harman.
Next annual convention will be Ocl25-29, 1989 at Opryland Hotel, Nashville, Tn.
EASTI:X l:oresr Products is a uni- L que company. The llouston, Tx., family-owned and operated business started in 1964 as a supplier of housing tops and builder's materials for a local home contractor. Today, the $25 million operation is both a wood distribution center and a wood preserver serving lumber yards within a 250 mile radius of llouston with treated lumber and white wood and plywood.
Bobbie Schiel, founder and owner, began his business career at l9 when he started the Schiel Drywall (-ontracting Company. The switch from doing building construction work to supplying builders with construction materials came easy. In fact, Schiel switched his company's operations again in January, 1988, when a new state-of-the-art wood treating facility was added to Eastex Forest Products. The retail and builder-trade operation was closed with the customer base changed from builders to lumber yards.
The company's state-of-the-art wood treating facility, a 6-l/2' x 60' Woodtec unit, was completed in December, 1987, and was at full capacity in April, 1988.
Eastex has a payroll of 52 employees and a fleet of I 5 trucks to service major, chain and independent lumber yards in Houston, East and South Texas areas.
"You can't sell from an empty wagon," commented Schiel. "That's why we are working hard to improve our treated material inventory."
Currently, Eastex maintains three million feet of treated lumber in its covered warehouse facilities with white wood and plywood accounting for an additional l0 million feet of inventory to serve customers.
"We are striving to have five million feet of treated materials in stock." said Schiel.
The wood preserving segment of Eastex Forest Products' business. was built on the western boundary of the company's l8 acre facility in northeast Houston.
"We exceeded all EPA requirements constructing our wood treating facility," commented Schiel. "l
please see page 34
wanted to be sure no one driving by would have any reason to suspect we were operating a chemical treating facility. No trouble no way!"
The 80' x 480' drip pad on which the treating plant and kiln are located has a retaining wall surrounding the lacility and a catch basin large enough to hold all of the stored chemical materials, should all storage tanks fail at one time.
Company adds treating facility. .. changes customer base state ol art plant exceeds all EPA regulations.
When the plans were drawn, Schiel and his people planned for a sizable truck entrance so the lumber could be unloaded directly from incoming trucks to the treating tramway or placed in the wood-holding sheds adjacent to the cylinder. Because the new Woodtec unit has a door at each end, Eastex can treat a new charge while the last charge of treated lumber is being unloaded, placed on the drip pad and the next charge is loaded.
Schiel placed the kiln directly behind the treating tube to reduce handling of products for those customers who prefer KDAT material.
Rounding out the distribution and treating operation, Eastex has a complete re-saw line in-house to handle special sizes and custom orders. In addition, the plant has a large band saw, edge-molder, planer and a complete maintenance shop to keep all fork-lifts and trucks in first class operating condition.
"Our objective is to provide quality service and quality products and be competitive," was the way Bobbie Schiel put it. "That's why we buy from quality suppliers like TempleInland Inc. "
Tim Bean, Curt Bean Lumber Co., Glenwood. Ar.. was elected vice chairman ofthe board ofgovernors of the American Wood Preservers Bureau at the annual meeting in Orlando, Fl.
Joel Whitley is the new retail store mgr. at Lester Home Center. Dunn, N.C. Dave Godwin is now contractor sales mgr., and Steve Stec, general store mgr.
Beau Freyou is new to Southern pine export sales at American Paneling Plywood & Lumber, Port Neches, Tx., according to Dick Freyou.
Lennie Zallar has been promoted to v.p. and treas. of Hechinger Co. Karen A. Egerer is new to the firm as v.p. and controller.
Jim Brown has joined the sales force at Alamo Forest Products, San Antonio, Tx., according to Melvin Allen.
Macon W. Lowe has been named pres. and c.o.o. of the W.R. Bonsal Co., Charlotte, N.C., succeeding William R. Bonsal III. now chairman and c.e.o.
Joe C. Denman Jr., chairman and pres., Temple-lnland Forest Products Corp., Diboll, Tx., has retired after 38 years with the firm. No replacement is expected to be named until January.
Russell Kennedy is the new v.p. of marketing & sales at GAF Building Materials Corp., according to pres. John Brennan.
Frank Denny, c.e.o., Builders Square, San Antonio, Tx.; Bernard Marcus, chairman and c.e.o., Home Depot, Atlanta. Ga., and Robert Strickland, chairman. Lowe's. North Wilkesboro, N.C., will participate in a "State of the Industry" panel at the National Home Center Show in March.
Larry Dwyer has joined Chesapeake Corp.'s Holly Hill treating plant, Eutawville, S.C., as a marine salesman, according to Rae R. Ehlen.
Jim Garner is the sales mgr. of Travis Lumber Co.'s new Mansfield, Ar., mill.
Steve Blount and Rodney Turley are new to sales at American Lumber Distributors & Brokers, Birmingham, At.
Rick Tomlinson, sales mgr,Georgia-Pacific, Raleigh, N.C., has been transferred to Charleston. S.C.. as sales mgr.
Kenneth A. Neal, asst. treas., Lowe's Cos., North Wilkesboro, N.C., received the annual North Carolina Automated Clearing House Association Excellence Award. J.C. Parris, Lowe's. Asheville. N.C., was honored with his city's Better Business Bureau Courtesy Award.
Ron Perry, Lowe's, North Wilkesboro, N.C., has been named to the State Ports Authority's board of directors by Gov. Jim Martin.
Mark Sandridge has returned to Lowe's, Charlottesville, Va., as store mgr.
Kathryn Looney is the new director of dealer services and education for the National Lumber & Building Material Dealers Association.
Jeff Pike is now co-mgr. of 84 Lumber Co., BluffCity, Va.
Dean Privette has been named personnel director for the newly lormed human resources dept. at the Paty Co., Piney Flats, Tn. JoAnne Paty is director of training.
Phyllis Walker, Scotty's, Winter Haven, Fl., received second prize in Master Lock's reception prize drawing at the recent National Hardware Show in Chicago, Il.
Jack K. Humphrey, HumPhreY Lumber Corp., MontgomerY, Al., has been elected to the board of managers of the National Hardwood Lumber Association, MemPhis, Tn', along with Bill A. Mullican, B. A. Mullican Lumber & Manufacturing Co., Venore, Tn., and David L. Williams, Louisiana Southern Forest Products, Inc., Opelousas, La.
Durand Darbyshire, regional market mgr., Southern Forest Products Association, and his wife, Susan, are the parents of 8 lb., 4 oz. Scott Ross Darbyshire, born Nov. 7, 1988.
Mike Pastore, CertainTeed Corp., has been promoted to group mgr., service centers, succeeding E. W. "Gene" Adams, who has retired.
Doug Ashy Sr., Ashy Building Materials, Lafayette, La., was recentlY honored by the Acadiana Home Builders Association for his membership recruitment efforts.
Mark A. Evans has been named v.P. of marketing & sales at RockY ToP Wood Preservers Inc., Rocky Mount, Va., according to pres. Thomas R. Casteel.
Lane Cox, industrial sales rep, GeorgiaPacific, Houston, Tx., has been named a regional Employee of the Quarter. Others recognized include Kendall Jones, lumber sales mgr., Jackson, Ms., and warehouse supervisors George Murphy, Richmond, Va.; Dale Beard, Tallahassee, Fl.; Gerald Young, Tampa, Fl., and Jack Teel. Tulsa. Ok.
Charles "Rip" Rogers, Trussway-Dallas Inc., Dallas, Tx., has been elected president .of the Wood Truss Council of America. John Herring, A-l Roof Trusses Inc., West Palm Beach, Fl., is 1989 pres.-elect/treas., and new board members: Faye Griffith, TriState Truss, Cleveland, Tn.; Gary Weaver, Timber Tech, Cibolo, Tx., and Staton Douthit, Associated Truss Co., Mesquite, Tx.
Jay Wyatt has returned to the Big Tin Barn, Diboll, Tx., as mgr.
Gary Lillard, Culpeper Wood Preserving, Culpeper, Va., is recuperating after surgery.
Elbert f,. Venable, head of the plumbing dept. at Venable Lumber Co., North Little Rock, Ar., until he was 96, recently celebrated his l0lst birthday.
Paul Pixley, v.p. and gen. mgr., Pixley Lumber Co., Claremore, Ok., has been named a trustee of the Claremore Public Schools Foundation.
Truman Hall, Little Rock, Ar., 1987-88 president of the Mid-America Lumbermens Association, is recuperating at home following a recent heart transplant operation.
Jack Peddy is now on the wholesale staff of Ridge Pallets, Barstow, Fl., working out of Ocala, Fl.
Mike Coyne, Ames Lawn & Garden Tools, has been appointed gen. sales mgr. of a l0-state region, including Tn. and Ky.
Currie Brankstone, daughter of Richard Brankstone, sales mgr., Elliott Whittington Builder's Supply, Memphis, Tn., was selected Lumber's Lady Fair by the Lumbermen's Club of Memphis.
Keith Smith is new to sales at Walter M. Fields Lumber Co., Memphis, Tn. He will work out of Columbia. Tn.. covering Tn., Ky., Al., Va. and the Carolinas.
John S. Hwilka has been promoted to v.p., sales & marketing, for the lumber div. of the Lumber Insurance Companies. Donald Robert Rung is now asst. v.p., technical field services.
Al E. Baba has been put in charge of cash disbursements at M ungusFungus Forest Products, Climax, Nv., according to Hugh Mungus and Freddy Fungus, owners.
side wall and roof sections to be preassembled flat on the ground and then connected to each other more easily. The walls are then positioned on special clips attached to the floor frame to eliminate additional leveling during assembly.
Chimney soot destroyer from Coughlan Products is now available in convenient, air-tight tub packaging, Chimney Sweep Soot Destroyer is sprinkled directly on the fire in woodburning stoves and fireplaces to vaporize soot in the stoves and chimneys. This is said to increase stove efTiciency and reduce fire hazards.
The product is offered in liquid form for oil and vented kerosene heaters, in "E-Z Pour" pint and quart containers.
The powder form comes in l6 and 38 oz. tubs.
A wall cabinet with a wine rack attached below is offered in a variety of door styles from StarMark.
The Miracle Stand measures 5-l/2" on a side, stands almost 3" high, and reportedly can support over 200 lbs.
It helps to prevent wooden deck rot, outdoor carpet rot and patio stain. lt also helps keep wooden containers from rotting and makes cleaning under the pots easier.
In addition, the stand is manufactured with a special snail repellent coating. It is said to be harmless to humans and pets.
For more information on New Products wfite 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!
Backyard storage barns constructed of wood are new from Arrow.
The sheds incorporate stud construction throughout, permitting
The Economy Barn is made of 7 /16-in. waferboard. The Deluxe Barn uses Cladwood, a composition material that reportedly is more consistent than regular wood, has a highly controlled moisture content and uses binders to seal out additional moisture.
Both models are offered in 8 ft. x 8 ft. dimensions, and 4-ft. extension modules are also available.
The cabinetry is available in many stain colors and finished with the firm's exclusive Star-Sheen process for added smoothness, durability and beauty.
A Christmas tree ornament containing a sensitive fire alarm is new from RAM Corp.
The ball unscrews to be equipped with a 9 volt battery for power. The alarm sounds when the temperature reaches 120' or greater and stops when the temperature cools down.
The alarm can be tested using a hairdryer blowing hot air into the hole at the bottom of the ball. In less than l0 seconds, the 90 decibel buzzer should sound.
Silver, green and gold ornaments are available, packaged in a colorful gift box.
A special merchandising display is now available for Plywood Panels' new line of beaded hardwood paneling and matching moulding.
The merchandiser holds 20 32" sheets of paneling in four different patterns, along with 19 8' striPs of chair rail moulding.
Also featuring a colorful header and literature rack, the display covers less than 16 sq. ft. of floor space.
The Wainscot Panels line includes six pastel and beaded oak woodgrain patterns, and mouldings in five coordinating colors.
Vinyl bow and bay replacement window systems providing full views of the outdoors are now available from Season-all Industries.
Single-hung, double-hung, picture or casement window combinations come in both white and beige. Styles include equal lites from three to six panels for the bow unit, while the bay unit uses a 1/4-1/2-1/4 con-
exposure to water and moisture. Available in five-gallon and 55-
A bracket for easily constructing workshop sawhorses using main beams and legs of any length is new from Bush Lake Industries.
Tightening a wing nut clamps the entire sawhorse together. Loosening the nut disassembles the sawhorse.
The Pin Popper, a new tool for removing door hinge Pins without damaging door jambs, is now available from WG Marketing.
figuration.
The pre-assembled wood buck is constructed of select birch veneer, and each wood mullion assembly is reinforced from head to seat with counter-sunk 1/4" steel-threaded rods.
Vinyl snap trim and mullion covers are also offered.
A new asbestos-free, asphalt emulsion foundation coating has been developed by Monsey Products Co. for waterproofing and damp proohng masonry above and below grade.
Reportedly containing no fillers or fibers, the coating is applied without heat in a thick film in a single application to control prolonged
gallon drums, it is ideal over metal roofs and surfaces, especially when installing Styrofoam as insulators and backer boards.
A polishing bar for soldering tips is new from Weller.
Designed to clean oxidation from either hot or cold soldering tips, the polishing bar will buff the tip and reportedly restore life to it.
Made of high grade zinc-plated steel, the 6" tool eliminates the need to remove pins with a hammer and chisel.
A wireless motion sensor light that can be mounted on any surface, including lamp posts, walls and fences, is new from Heath Zenith. The system consists of a batterYoperated sensor and a receiver which replaces any existing wall switch to control the light. It may be placed up to 150 feet away from the control.
Features include pulse count technology to prevent false alarms, variable shut-off to set the duration that lights remain on, and an adjustable photo cell for changing the times lights turn on at night.
House numbers have been transformed into decorative accents by Summitville Tiles.
For more inlormatlon on New Products wrlte Buildlng Products Dlgest, 4500 Campus Dr., Suite 480, Newport Beach, Ca.92660.
Please mention issue date and page number so we can process your request faster! Many thanksl
A simulated electronic alarm package designed to fool even experienced burglars is new from I)ynatec International.
Low voltage linear lightinS from Sylvan Designs adds brightness to a bar or mirror, accents paintings and defines handrails or stairways.-
A new series of glazed ceramic tiles features easy-to-read numbers and a choice of eight decorative themes, including morning glories, berry sprigs, sea horses and stylized hearts.
With white backgrounds and black numbers, borders and corner motifs feature garden greens, pastels and bright primary colors.
Each 4" x 8" tile can be glued directly to the side of the house, mounted on a plaque and framed, or hung using the pre-drilled nail hole.
A deck design kit to help do-ityourselfers and contractors put their ideas and requirements on paper is new from Mellco.
Design-A-Deck Kit includes scaled, miniature punch-outs of benches, tables, railing sections and step sets, and an oversized grid, large enough to lay out an 18'x 27' deck.
After completing the design, the customer returns to the dealer to purchase the necessary lumber and accessories selected for the deck.
When activated, a flashing red light on the control plate is said to be exactly like that of an expensive burglar alarm system, discouraging intruders.
Included with the panel are batteries, two keys, mounting screws and warning decals.
Light bud channels are said to offer uniform illumination without individual points of light, simple relamping, and quick installation.
Lighting is mounted on any of its three sides with double-sided foam adhesive tape or screws, even fitting snugly in corners.
Standard on-center lamp spacing is 1.5", 2" , 3" or 4", in lengths up to 20 ft. per section, with gold or silver reflector, Custom sizes and spacing are available, as well as anodized colored channels, multiple-light construction and mitered corners for framing. Guard
A steel window guard combining heavy duty protection with classic elegance is new from Leslie Locke. Part of the Village lronsmith line, the guard offers l/2" x l/2" tubular steel pickets with integral spearpoints on top and bottom and scrollwork ornamentation.
Widths available range from 24" to 72" and heights from 24" to 60". Accessories, sold separately, include mounting brackets with oneway screws and both lever-operated and foot-operated fire release kits.
A lumber bundle and load tallYing device introduced to the hardwood lumber industry last July is finding wide acceptance.
Developed and tested. by Tom Beard of E.N. Beard Hardwood in conjunction with Createc Forestry Systems, both located in Greensboro, N.C., the End Tally was demonstrated and received with much interest at the recent National Hardwood Lumber Association meeting in New Orleans, La. Al Jenks, President and founder of Createc Inc., parent company, predicts that 75 to 100 units will be in use by the new year.
Createc Forestry SYStems is a seParate dil'sion of Createc Inc. The parent company was formed several years ago to create computer product lines with specialization in the collection of business data electronically and the electronic transfer and evaluation of that data for management. It specializes in bar code systems, hand held and small computer systems.
Patrick Jenks, son of the President, who has a forestry degree, has been instrumental in applying the technology of the company to the forestry and lumber industry. Timber Cruiser and Forest Eagle were initial products developed for use by the timber industry in timber stand analysis. A complete woodyard inventory management system and a chain tally system are among other computer technology products being developed by the company.
uses End Tally in his oPeration, reports that "my staff has tallied as much as 27.000 board feet of hardwood in less than three hours." Impressed by the performance of the product, he has established a sales relationship with Createc ForestrY Systems as its western representative.
Applications are being accePted by the National Lumber & Building Material Dealers Association for its summer internship program.
The 1989 intern, who will sPend six weeks in Washington, D.C., June 12 to Aug. 18, working with NLBMDA, will have an opportunitY to visit government agencies, observe Congress and meet with officials of other associations. A stipend of $2,000 is provided.
Eligibility is based upon being a high school graduate between the age of 17 and 24 who is the son, grandson, daughter or granddaughter of a retail building material owner or employee. The comPanY represented must be a member of NLBMDA.
ilEll,
A strong 1989 business climate until the fourth quarter, demand nearly as good as this year and interest rates ranging from 90ft - I I %r were forecast by North American Wholesale Lumber Association president Henry Poler ar the NAwLA Southern Sector Regional Meeting in New Orleans. La.
Stan Elberg reported on the successes of the Southern Pine Marketing Committee. He noted that six model homes built two years ago in Jamaica as part of an export promotion suffered no damage from the iecent Hurricane Gilbert.
C. W. "Pat" Patrick, Timber Products Inspection, described counterfeit grade stamps as a problem for every region of the country.
He warned the wholesalers that they face potential liability from the growing incidence of unstamped and fraudulently stamped Iumber. "We're currently manufacturing the finest southern pine ever, yet we still have this serious threat to our industry," he said.
The Southern Pine Inspection Bureau's Tom Jones reported on the introduction of Prime and Merchantable Dimension, developed to supply a wane free product to treaters, truss producers and other manuflacturers. He said it was too soon to tell if its extra costs would prove acceptable in the marketplace.
An in-depth seminar was presented by Jay Avelino of Caliper Assessment. Inc. on how to select
0. Elder,
Nick Holmes. l5l Dottie Klotz, Garv Hoorman. 16l Jefl Easterling, Jim McGinni3 lll. l7l Harold Mayo, Terry Murphy, Wayne Erooks, Pat Mantooth. l8l Lamar Logan, Steve Keadle. l9l Paul Klocko, Mike Norman. ll0l Larry Wagner, Jack Schaberg. llll Don Dobbins Jr., C. W. Patrick. (l2l Tom Rice. ll3l Henry Poler, Rick Riley. (l4l Melvin Follis, Bob Bell. {l5l Jack Schaberg, William Goyne, Allen Cameron. (l6l Charles Andrus, Peter Albano, Robin Wildermuth. llTl Bill Ward, Ken Williams. llSl Jim Elder, Jay Woodward, Norm Wroe. ll9l Peter Albano. (201 Donnv Taylor, Steve Funchess. 12ll Don Taylor, Oon Dye.
and retain good people for both sales and marketing positions.
Approximately 100 people attended the October 6-7 meetins held at the Marriott Hotel.
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See Story On Page 2C
Eastex Forest Products is a unique operation because of its people and the way Bobbie Schiel runs the show.
A trip to the headquarlers on llartwick Road in Houston's industrial northeast side tells the story. Once you g,et past the yard watchman's oflice, you are ushered into a large bull pen where five sales people and Bobbie Schiel are manning phones, making sales calls and trading lumber. What is good enough for the sales people is good enough for the owner, and that's the way Eastex Forest Producls rs run.
Rod l)idier heads treated materials sales, bringing I l years experience to their customer base. Vince (ioodman has l6 years with Schiell Max Welch also has 16 years experience, but not all of it with Schiell Terry Welch has eight years experience and Dan Anderson, seven years plus a degree lrom the University of Minnesota in forest products.
The financial end of Eastex Foresl Products is under the direction of Ruby Schiel and her two daughters.
As Bobbie Schiel so proudlybut not boastfully - put it, "We're family owned and very proud of the quality service and the quality product we provide our customers."
With no outside sales people, as such, the success which Eastex Forest Products has achieved speaks very well for the quality of its product and the quality of its customer service.
Twenty-five (25) words for $21. Each additional word 700. Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $6. Box numbers and special borders: $6 ea. Col. inch rate: $45 camera ready. $50 ifwe set the type. Names of advertisers using a Address replies to box number shown in ad in care of Building Products Digest, 4500 Campus Dr.' Suite 4E0, Newport Beach, Ca. 92660. Make checks payable to Cutler Publishing, Inc. Mail copy to above address or call (714) 852-1990. Deadline for copy is the l5th of the month. PAYMENT MUST ACCOMPANY COPY unless you have established credit with us.
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Glued Panels/FingerJointed Products
S0UTllERtl lumbermen at the joint meeting of Southern F0rest Products Association and the American Plywood Association: Il I Harold Maxwell, Bill Shields. (21 Hugh Love, Karl Lindberg. l3l Clary Anthony, Bill Morrow. l4l Dwiqht Harrigan, Dick Warner. [5] Howard
Powell, Nan Jones, John Hite, Fred 0mundson, 16l Dave Evans, Bruce DeLess. l7l King Cole, Charlie Sellers, L. J. Landry l8l Cathy Marx, Bob Anderson, Dennis Hardman. l9l Carroll Maxwell, James Bibler. (l0l John Nichols, David Anderson. llll John & Jean
GTTRESSING "lumber and ply9wood go together like bread and butter, so it's only natural that our associations have common goals in developing new markets and strengthening existing ones," Harold Maxwell, chairman of the board,
Southern Forest Products Association, set the theme for the first joint meeting of SFPA and the American Plywood Association.
Some 350 lumber, plywood and structural panel manufacturers gathered in Charleston, S.C., Oct.
10-12, for the meeting. The theme "Working Together: On the Road with APA and SFPA" was introduced in a comprehensive multimedia show reviewing the way the two groups promote members' products.
Turner ll2l M. L. Sandy, Jack Neal ll3l Robin Swilt lll, Gayle & Clayton Barns. ll4l Arlene & Larry Kirkwold. (l5l John Shealy, John Albert.APA President Bill Robison noted that structural panel production hit a record 27 billion square feet last year, surpassing the association's five-year goal three years ahead of schedule. He indicated 1988 production would just about match that.
SFPA President Karl Lindberg said, under his association's fiveyear "Marketing Marathon" plan, "we've reached the 1.4 billion board foot goal a year ahead of schedule." He noted that production of southern pine lumber went over the top at about 12.5 billion board feet last year, and would probably equal that total again this year.
350 review marketing at joint APA, SFPA meeting ... formidable competition from steel and concrete. Nichols elected SFPA chairman.
John Nichols, chairman of the board, AT&N Lumber Service, York. Al.. was elected chairman of the board of SFPA.
He succeeds Harold C. Maxwell, Temple-lnland Forest Products Corp., Diboll, Tx., who was elected immediate past chairman.
Eugene G. Parker, vice-president/general manager, lumber division, Westvaco Development Corp., Summerville. S. C.. was elected vicechairman; T. H. O'Melia Jr., Scotch Lumber Co.. Fulton. Al.. treasurel Karl W. Lindberg, president; Lionel J. Landry, secretary.
New district directors are C. Arthur Howard, Claude Howard Lumber Co.. Statesboro. Ga.. District 2:
Dwight Harrigan, Harrigan Lumber Co., Monroeville, Al., District 4l John Shealy, Willamette Industries, Ruston, La., District 6; and David Anderson, Anderson Manufacturing Co., District 8.
New directors-at-large are David R. Fleiner, Georgia-Pacific Corp., Atlanta, Ga.; James Green, Anthony Timberlands, Inc., Bearden,
Ar.; J. C. Jessup Jr., Weyerhaeuser Co., New Bern, N. C.; Duane Peterson, Champion International Corp., Camden, Tx.; Terry Twedt, Boise Cascade Corp., Florien, La.; and R. V. Warner, Potlatch Corp., Warren, Ar.
John D. Hite, Walker-Williams Lumber Co., Inc., Hatchechubbee, Al., will represent treaters.
Manufacturers of Quality Pine Moulding for over 35 Years
o MOULDING: solid linealfingerjointcut-to-length
. JAMBS: solidveneerftngerjoint
o carton pack moulding
o unitized for forklift unloading
Charles E. Qulnn, president and founder of the Charles E. Quinn Lumber Co., Sturgis, Ky., died Oct. 31, 1988, in Evansville, In. He was 59.
A native of Sturgis, he spent a number of years at Alloway Lumber Co., Sturgis, before opening his own firm in 197 | He was also a longtime director of the Kentucky Lumber & Building Material Dealers Association.
Mr. Quinn is survived by his widow, Betty, his parents, three daughters, a son, a sister, and three grandchildren.
Claude J. "Buster" Lackey Jr., 51, part owner of Lackey Lumber & Building Materials, Inc., Forest, Ms., died Oct. 22, 1988, following a heart attack.
A graduate of Auburn University, he was past president of the Forest Jaycees and a director of the Mississippi Building Material Dealers Association from 1980 to 1983.
Mr. Lackey is survived by his widow, Jean, one son, and one daughter.
Dewey Kephart, president of Davis Washington Lumber Co., Gainesville, Ga., died of a heart attack Sept. 14, 1988, in Gainesville. He was 73.
A native of Murphy, N.C., he joined Davis Washington in 1935, buying the company with Hubert Deaton Sr. from its founders in 1953. He also served as an insurance trustee and director of the Building Material Merchants Association for many years.
Mr. Kephart is survived by his widow, Evelyn.
Ajayem Lumber Corp., Walden, N.Y., has filed for Chapter I I bankruptcy protection from creditors to recover from major losses at its now shuttered Tampa, Fl., and Charlotte, N.C., facilities. Unofficial loss figures range up to $6 million.
After substantial losses, the Tampa and Charlotte locations were liquidated. The Walden and Columbus, Oh., units continue to operate profitably and are in time expected to overcome the company's overall debt, according to an Ajayem spokesman.
The l500 delegates attending the 9lst annual National Hardwood Lumber Association convention in New Orleans, La., had an opportunity to preview the 30 second hardwood advertisement currently being shown on CNN tv network.
lnaugurated by the Hardwood lnstitute wood promotion committee under the direction of Emmet P. Vaughn Jr., Emmet Vaughn Lumber Co., Knoxville, Tn., the ad will be shown 168 times in the next l0 months. Budgeted at $277,000, the promotional film will be seen five to six times by some 150 million people during that period.
"The intent is that this will be an ongoing program to build in the eyes of the North American consumers the desirability of genuine hardwoods in homes and businesses," Vaughn said in introducing the program.
John Thomson, Peter Thomson & Sons. Alliston. Ontario. was
(Continued from page 27 )
Wdter Terry, Walter Terry Distributor, Houston. Tx.. recently celebrated his 75th birthday.
Gary P. Snyder has been named area general mgr. for Lowe's Cos., Fort Smith, Ar., overseeing l5 stores in Tx., La., Ok., Ms. and Ar. James Gordon Montrose Grahrm, Lowe's, Chapel Hill, S.C., married Janie Coleen Hearon on Oct. 15, I 988.
John Gregory Buvid, Scotty's, Savan- ' nah, Ga., and Donna Elaine Eckard, Hickory, N.C., plan to marry on Dec. 17.
Richard Taylor, DeSoto Hardwood Flooring Co., Memphis, Tn., will retire at the end of the year after I 5 years as pres.
Jay Leahy has joined the Florida Lumber & Building Material Dealers Association as director of member services.
Philip Jurkovich, Sequoia Supply, Atlanta. Ga.. has been transferred to Memphis, Tn., as sales mgr.
Craig Anthony Byrd has been named Alabama account executive for the Lumber Mutual Insurance Co.
Bill Barger has joined Norco Windows, Inc., to open the new distribution warehouse in Statesville, N.C. John Berry has a five-state sales region, while Tom Garner will cover dealer sales in S.C.
elected president; Henry G. Fulcher Jr., Sitco Lumber Co., Wilmer, Tx,, first vice president, and Jim C. Hamer. Jim C, Hamer Co.. Kenova. W.V., second vice president.
The meeting, Oct. l7-19, marked the retirement of W. Carroll "Bill" White as executive manager. The growth of the association during his l0 year tenure was reviewed in a special salute to him.
Ernest J. Stebbins, assistant manager for the last five years, has taken over as executive manager with Bob Garst as assistant manager.
Meetings of the Hardwood Export Trade Council, Hardwood Distributors Association, Canadian Lumberman's Association-Hardwood Bureau, American Walnut ManufacturersAssociation and International Hardwood Products Association were held in conjunction with the annual meeting.
American International Forest Products ,.......Cover I
American Wood Preservers Bureeu ,....19
Arizona Pacific Wood Preserving , ,..,.. 7
Besn Lumber Co., Curt Cover III
Beverly Manufacturing Co. ............31
BowieSimsPrange . ..........25
Central Builders Supplies Co. .,........33
Cole & Associates, John T. ........ ....35
Columbus Lumber ....25
Crestec Forestry Systems .......3 csl ... .......21
Duke Ci$ Lumber Co. ... .....IE
Eastex Forest Products .,,,..,.22
Elder Wood Preserving Co. , ......... ,6
Fields Lumber Co.. Walter M. .........30
Georgia-Pacific Corp. .. ..Cover IV
Glen Oak Lumber & Milling ...........35
Hoover Treated Wood Products ..........5
Jordan Redwood Lumber Co., Lee Roy ..33
Mary's River Lumber Co. ...,...,..24
Maze Nails ...........23
Navqio Forest Products Industries ...,..26
Nova Lumber .,...,..IE
Pacific Lumber Co. ....
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