Story at a Glance

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.

Story at a Glance

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 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.

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....

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, .

Home Center Show Program

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.