Optimism at national dealers convention

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.

Story at a Glance

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.