Building Products Digest - December 1990

Business Forecast o December f990

it gong h be when it gows up ?

A Georgia-Pacific redwood tree-and more.

It'll be one of the prettiest and most rresatile woods in the world: smooth, straight, richly colored.

It'll be Green Redwood, Douglas Fir or Hem Fir: a renewable resource that lends its natural beauty to any setting.

It'll be rustic redwood siding, sappy cofiunons, or garden gnde lumbeq kiln dried, air dried, milled with precision at G-P's Ft.Bragg mill. And it will be professionally graded by RIS rules.

fence, a house-and your bottom line.

For your redwood custorners, droose the redwood that has everything going for it: looks, promise, and afine fr.milyrurne. Choose G-P redwood. Amember of the California Redwood Association.

For more inficrmation, call the Ft. Bragg mill, (707) 954-0281, or the G-P Distribution Centeiiearesr you.

Serving the lumber & home center

Boise Cascade chairman sees increased. tough competition

Florlda populatlon groundswell

Scotty's ceo ready for challenges of more customers

Home cGntGr rp,lcs wlll rcdoublc ln decadc

Lowe's chairman optimistic about the state of industry

Wd pJGtGrCtt look lor morc oJ Qhc ta,mc

AWPB president anticipates repeat of '90

PU0US[En David Cutler E|llT|!n Juanita Lovret ^SS0CnIE El|ll||R Oavid Koenig C0nnltulll|0 E0lT0i8 Dwight CuIran, Gage McKinney, Ken Thim, Wally Lynch tBI 0lBtCT0n Martha Emery SflFF lNflSI Ginger Johnson CltCUUTl(ll Tracy Payne

markcir ln l3 Southcm rtatcr

Buildinq -- Products

& horrrr, < r,rrtcr

Iil Southern stales

EDITORIAL

Watch Your Mouth!

I N ()t llt rcscrrrch lor this Ilusincss liorccast I lssuc. uc ltcrrrtl l()ts ol' pcssirttrstic tirlk. l'oo nruch, wc thirrk. lirr itt.rvonc's gootl. Wc've said it bcl<lrc on this pagc, but it bcurs rcpeatirrg: il' e vcryonc talks constantly about how bacl busincss is, you can bc surc it will go li<lnr bad to worsc. Ncgativc tllk bcconrcs a scll'-lullllling prophccy.

Sure, big problcnrs cxist. 'l hc (iull'crisis, thc f'edcral clellcit, savings & l<litn arrcl banking problems, tinrbcr supply ancl cnvironnrcntal dilllculties, credit and c<lllcctiorr problcnts and badly shakcn consLlnrcr c<lnllclcrrcc. Not to nrcntion housing bcing in thc llnk. All in all, a scary prospect.

llut thcsc nroblcnts w<ln't litst lilrcvcr. I)roblents ncvcr do. Inrlr.rstry vctcrans notc that "if it isn't one thing. it's alrothcr." Obscrvers point out that it's bccn ubor.rt cieht velrs since our last

(lownlurn, a lirr lottgcr pcriotl ol gootl tirlcs thun this intlustn hirs ctr.iolcrl lirr nlrny' l'curs. 'l'hcir l'ccling is thlt pcoplc shoLtkl havc prcparcd in g<l<lcl tinrcs lilr thc incvitlblc cyclical declinc. (ioocl aclvicc. but casicr suiil thln rlonc.

Ilow l<lng will <lr.rr indr.rstry's part of' thc national rcccssiort lust'l Wc hclrrrl cverything lionr lrrst quartcr 199 I t<l two ycar:i. Wc fbund no conscnsus, bLtt thc lurgcst groul) sccs a nricll99l turnarouncl.

(iood tinrcs will rcturrr. What wc nced to do now is soldicr through tlre busirrcss battlcs firr however long it is until thc cyclical Ltpturn.

Ncither kncc.jcrk pcssirrisnr nor nrindlcss Pollyana happy' tulk is thc answcr. llard work, cflectivc nrlnlgcnlclrt adaptccl lo thc changed conditions <ll' thc 1990s ancl a go<lcl dose of realistic conlklcncc is l good prcscription for surviving harcl tinrcs.

HOW TO GET THE BEST DEAL ON

CEDAR SPLIT RAIL:

The best deal isn't necessarily the one that's the cheapest; it's the one that makes ylu the most money.

lf you can f ind a mill that is really fussy about its quality, prices fairly, ships 0n time, provides g00d sales suppOrt and guarantees every stick they sell, Then you will have the happiest customers, the fastest turns, the nicest margin, and the best return 0n your solit rail investment.

ldaho Cedar Sales in Troy, ldaho, is that mill. We are lhe best deal because we do what it takes to make sure yOu make the most m0ney.

RED

Seminar For Redwood Pros

A select group of28 redwood specialists from throughout the country participated in an intensive seminar at the Arcata, Ca., headquarters of Simpson Timber and Arcata Redwood Corp.

"To meet the challenges and capitalize on the opportunities of teamwork between the mill, the wholesale distributor and the building material retailer is more important than ever before," seminar chairman and Simpson redwood market development manager Haley Bertain stressed in his keynote remarks.

Jim Brown, general manager, Arcata Redwood, and his staff conducted woods and mill tours relating to the older generation forest. Correspondingly, Dave Kaney, Simpson general manager, and his staff covered the harvesting and milling of new generation redwood.

Glenn Lehar explained the latest silviculture techniques at Simpson's Korbel nursery, the largest privately owned tree nursery in Northern California. Dick Rice, Arcata redwood quality control supervisor, and Tom Circe, Simpson yard and

quality control supervisor, selected redwood for hands on grading exercises. Promotion programs and technical standards were covered by Christopher Grover, vice president, promotion and advertising, and Charles Jourdain, vice president,

attending the annual Simpson's College of Redwood Knowledge at Arcata, Ca. A four day program included woods, plant and classroom exposure to forest management, harvesting, seasonin g, gradin g, m lling, shipping and marketing operations.

technical services, California Redwood Association.

Although Arcata participated as a co-sponsor for the first time, this was the 2lst Simpson redwood seminar. More than 480 wholesale distributors have attended.

nE0W000 WH0LESILERS Jim Tingle, Lee Roy Jordan Lumber Co., Dallas, Tx.; Greg Watts, Epperson Lumber Sales, Statesville, N.C.; Wes Webb, Furman Lumber, Stafford, Tx., and Seaborn Wood, Wholesale Wood Products, Dothan, Al., were among 28 salesmen

BASINESS FORECAST

Ghanges will shape industry

By John B. Fery Chairman of the Board Chiel Executive Ollcer Boise Cascade Corporation

llY 30-PLUS years in this induslUl try have taught me that there's one thing we can always count on change. Today'senvironment is no exception.We're witnessing a change in U.S. demographics that will alter the domestic housing market well past the turn of the century. Fewer families are forming, which translates directly into fewer houses being built. This trend is not likely to be reversed until the children of the baby boom generation begin buying homes. The net result is that housing starts are apt to remain relatively steady at rates of about 1.3 million a year, which is far less than the historical rates we've enjoyed. On the plus side, however, families are living in the same homes longer and, consequently, are doing more repair and remodel work. This segment of

the market should continue to grow at a healthy rate.

On the environmental front, the forest products industry will continue to face increasing pressure on timber supply, especially in the Pacific Northwest. Restrictions on timber harvesting have already resulted in the closure of dozens of Northwest mills, and there will be more, both in the Northwest and eventually in other regions of the country. A limited wood supply will ultimately result in reduced product availability and higher prices. All in all, it's going to be a tough, competitive market in which the advantage will go to those producers who have the most modern, efficient and strategically located facilities. Product innovation, particularly for products that require less raw material,

Story at a Glance

Demographic controlled hous' ing starts of 1.3 million... heaF thy R&R growttr... continuing environmental pressures . . promlsing worldwide market for building materials.

such as Boise Cascade's recently introduced laminated veneer lumber (LVL), will also play an important role in the competitive environment I've just described.

Not all the changes that affect our industry are occurring so close to home. The creation of a European Common Market shows promise of greater economic growth and, therefore, greater demand for building products. The recent agreement by the Common Market countries to adopt common building codes means that U.S. suppliers can better compete in that market. On the other side of the world, residential construction rates in the Pacific Rim countries are expected to remain at high levels. All told, these worldwide changes should present significant opportunities for the U.S. forest products industry.

The future holds many changessome that may go beyond what we can anticipate today. And with change will come challenges and opportunities. Given Boise Cascade's commitment to total quality, combined with our natural resource base and a history of solid investment in our facilities, we're confident that we are well prepared to meet those changes.

Retailer seruice improvements

By Daryl L. Lansdale President & CEO Scotty's

T HE 1990s are here. and they I bring with them predictions of recession, slow downs, building moratoriums and environmental disasters. However, the new decade also brings new products, new technologies, new methods of communication and new opportunities. At Scotty's we are determined to focus on all the opportunities the future holds. Scotty's stores are predominantly in Florida (165 stores total. 155 in Florida, 3 in Alabama and 7 in Georgia), where tremendous growth in population continues. Over l7 billion dollars will be spent on building products in 1991, according to a Florida Long Term Economic Fore-

cast. By concentrating our efforts on our custoryler, we expect to get a significant portion of the building products industry.

Most retailers today recognize that whether their customer is a contractor, a remodeler or a do-it-yourselfer, he demands service. And that service must be more than a smile. It requires that you be in stock with the products a customer needs, when he needs them. The customer does not want excuses.

Service also requires that we have trained, capable personnel. Personnel that are able to answer questions the professional might have about a new tool, as well as questions a homeowner might have about installing a faucet.

As the professional contractor shifts from new housing to repair and remodel projects, we must reemphasize the service requirements they have. We will make certain that all our employees understand that time is essential to this group of customers and that this need is met.

Quality and value are no longer

No fun in'91

By Alan M. Gayle Senior Vice President & Chief Economist Crestar Bank

UU ITH a background of a slowing UU economy, dipping consumer confidence and tax hikes, it is not surprising that the building industry has ground to a halt, although the impact clearly varies by region. Consumers have all but stopped buying houses in general, but those builders who have not committed heavilv to speculative building should not be hit as hard. Those builders with inventory (homes and land) will have more problems, particularly on the financing end.

On the commercial side, the surge in building activity during the '80s is not likely to be repeated in the '90s,

and it may be some time before the current glut of office space is absorbed. In the Washington, D.C., metro market, we estimate that conditions for office building may become favorable as early as the beginning of 1992, but the depth and duration ofthe projected recession is a critical variable. While we do expect the D.C. office building market to recover, the '90s will likely see only half of the level of buildin! reached in the last decade. Strong fundamentals will allow the absorption ofexcess space and will generate the need for new building.

The bright news in this otherwise gloomy scenario is that the outlook for inflation and interest rates is very good. A resolution to the Persian Gulf crisis, slower wage growth and easier monetary policy should help lower inflation and interest rates. During a normal recession, shortterm rates such as the prime fall roughly 400/o-500/o from the peak. This would imply a drop in the prime

luxuries. Today, quality and value are virtues that are demanded by any customer. In addition to our buyers, our thousands of manufacturers and suppliers clearly understand the importance of offering the best products available at very competitive prices. We foresee that this trend will only get stronger in the future.

Story at a Glane

A higher service level will be a must ior retailers.. better fained personnel essential for contractor customers. Florida willcontinuetogrow.

Scotty's is looking forward to the rest of the '90s. We expect challenge, we anticipate change, we're striving for innovation and we're going to take advantage ofevery opportunity to be successful.

rate to approximately 60/o sometime in 1991. While interest rates are likely to fall in the months ahead, the availability of and the competition for foreign capital is likely to put a floor under the prime around 8o/o8.5% by the middle of the year.

Story at a Glance Building to remain deprcse ed... inflation and intercst rate outlook good .. cyclical uf swing fior builders due in 1992.

In short. the outlook for the new year is not rosy, and the building industry will have more than its share of difficulties. However, the recession will help lower interest rates and improve the financing fundamentafs by 1992. At that time, the industry should be able to regain more solid footing for a new cyclical upswing in building.

Turbulence ahead

lly Robert 1,. Strickhnd ('hairman [-owc's ('ompanies, lnc.

I N PLANNING for the 1990s, it is I instructive lo compare and conrrasr this decade wirh rhe 1960s. llorh are postludes, following a popular and successful two-term Republican president.

F.arly in the '60s, the cry was to get the nation (the federal government in their view) "moving again." Today, the cry is to get the federal government under control! Then a hot war, a ground war, in Southeast Asia was imperceptibly in the future. Today, a hot war, a ground war, in the Middle h,ast is very possible, if not probable. So, against this background, let's consider l99l and our industry.

We have been in a recession since the spring in 1990. The "yes, no, maybe" opinions we read remind me of the medieval discussions of how many angels can dance on a pinhead. Consumers' actions confirm their beliel in a current recession, therefore, we are in one, and the

prudent thing is to believe that it will last throughout 1991. I hope l'm wrong here, but what lactors exist lbr a quick reversall

l:or years I have believed that the '70s were over, and so were the days ol'2 million housing starts. That still holds, but a twin belief that starts would not dip to I million may be severely tested or proven wrong this year and/or in 1992. All of us knew that demographic trends were a downer for housing this decade. Who predicted this simultaneous devastating S&L llasco and real estate price depression I

The home center business outlook is good. The llome lmprovement Research lnstitute forecasts the total home improvement products market willgrow by 3'Xr in 1991, to $lll.4 billion! This represents more than double from the $50 bil-

Story ataGlance

Honre center buslness ls good d€splte receeslon... salee of $111.4 bllllon In'91, comparedto $50 bllllon 10 yearc ago a soc* ond doubllng expected in thls decade. . .llx-lt merchandlslng replacing ffx-it+rp.

lion postecl ten years ago. Leaders in home center retailing believe it will double again in the '90s. Although this 3(),[r increase is a slowdown in rate of growth, it is quite positive, given the economic scenario we face. Product categories will perform differently in a recession. obviously, with "l'ix-it" merchandise faring relatively better then "lix-it-up" categories.

Political developments always throw caveats at future outlooks. In 1991, this is an even larger factor. 1990 brought the "summer and autumn of our discontent" to the American populace. Since the reversal on the tax issue by the president and the subsequent budget squabble came after the primaries, the "throw the rascals out" feeling did not produce a great change in Congress in 1990. The feeling will reappear with vengeance in the 1992 primaries! Couple that with the Presidential election, and expect to see the jousting and maneuvering begin by January, 1991.

Should a hot war break out in the Middle East, I expect it to be more like Panama than like Vietnam. "Surgical strikes" are myths and air power alone won't win it, but our military leadership is world-class, as is our political leadership in international issues.

A hot war would clearly adversely affect oil prices, inflation, the consumer economy of Washington, I).C., and other military bases, but could perversely boost consumers' spirits as they "rally round the flag."

Southern pine stands strong

By Karl W. Lindberg President Southern Forest Products Association

T HE experts say that home- I building is in a depression. the economy is probably in a recession, and the Middle East is so explosive that a shooting war could erupt any day. All of those views constitute bad news for the nation and the southern pine industry in the months ahead.

The good news is that aldo much about

housing, the state of the economy or the Persian Gulf crisis, we can and have done something about seeing that southern pine lumber producers can weather such bad news far better than ever before.

What we've done is to deliberately diversify the demand for southern pine lumber products through our Marketing Marathona five-year program that relies less and less on the traditional but diminishing homebuilding sector, while stimulating new demand in such diverse new sectors as exports, engineered wood systems, repair & remodeling, industrial and treated markets.

Through aggressive advertising and public relations, combined with focused promotions to target audiences on the advantages of using

southern pine lumber, we have been able to boost demand and pick up the slack of the fading housing sector.

Story at a Glance

Southem pine indusilry is pe pared for the r,\torst. diversified marketing stimulates new demand rcactive stance challenges environmentalist demands.

Example: Housing starts in 1987 fell from 1.8 million units to 1.6 million, but production of southern pine at the mills rose 50/o to 12.47 billion

board feet, highest since 1925. In 1988, starts slid to 1.5 million units, but SP production edged up to 12.68 billion board feet. Then last year, starts dipped to 1.38 million units, while SP production slipped only slightly from the year before to 12.55 billion board feet. For 1990, as housing starts plunged to an annual rate just above a million units, SP production through August was ahead of 1989's pace, ready to deliver another l2 billion board feet or more.

Clearly, the southern pine lumber industry is now in a position to ride out the storm if the economic weather grows even worse for homebuilding. And our diversified approach to the southern pine marketplace will also help producers maintain market share even if it turns out that the nation's long expansion has come to an end with an official recession.

In addition to economic woes and

possibly a war in the Middle East, the southern pine industry will also face stepped up challenges on the timber supply front.

Preservationists simply do not want anyone to cut down trees. Period. Their thinking is so compartmentalized that they are unable to make the connection between the need for wood products such as lumber, plywood and paper and the need to harvest timber to make those products. Instead, they use owls, woodpeckers, wetlands, yew trees, wilderness and a kind of ancient forest mysticism as legal padlocks to prevent the harvesting of timber from public and private lands.

Slowly but surely, the forest industry is changing from its reactive, defensive posture to a proactive, aggressive stance in putting forth its case to the public. The sooner we can convince the public that we are responsible environmental stewards of the landi the better.

There's a big 33iI" ahead

By William T. Robison President American Plywood Association

F ONCEnNING next year, there

V isn't anyone who really knows for sure what is going to happen! Every forecast is conditional on a number of big "ifs," but APA believes there are grounds for pro-

-- jecting a modest ' panel market recovery in the sec-

ond halfof 1991.

Our best esti9 & mate for l99l at

; this time is a

& modest recoverv

*: ,;iffi mooest recovery beginning in the second half, permitting production of 27.3 billion sq. ft. This is based in large part on the assumption that the Fed will lower in-

terest rates to stimulate recoverv about midyear.

We expect only a gradual improvement in new residential construction in 1991. Housing starts will continue weak until interest rates soften and the basic real estate climate improves. The current S & L problems, which have put a damper

Pluses & minuses

By Edward D. Hester Vice President The Freedonia Group, Inc.

A S WE approach year-end 1990, Fl construction spending remains weak virtually across-the-board, extending a trend that has lasted nearly five years.

Story at a Glane

Housing will prccede a general rcoo\rery. trade up market will partially balance bwer first time horne buyers...long tenn pros' pects for nonresidential construction are mixed.

on new real estate loans from almost every quarter, will tend to slow the housing recovery that normally occurs when mortgage rates subside.

Our forecast assumes that shortterm interest rates will drop meaningfully shortly after the first of the year, but it will take about two extra months for that decline to be reflected in long-term rates. The results will be no housing recovery before June and a slow rate of new growth after that.

Overall, the U.S. economy will go through some tough sledding before returning to a modicum of health. Given an acceptable solution to the Middle East crisis and a stronger U.S. financial community, prospects remain, however, for a much improved longer term economic environment.

Story at a Glance

Subiet to a number of big "ifs" a modest panel market rcoovery is possible in second half '91 .. gradual recovery in nevv rcsidential construction.

Following a stressful near term period, intermediate-to-long term prospects are somewhat brighter. Construction, especially on the residential side, is typically among the first sectors of the economy to recover from a slowdown. Thus, housing starts and residential construction activity are expected to improve before a general recovery is felt. Demographic trends, i.e., fewer individuals entering the prime firsttime home buying ages, will be a built-in growth-constraining factor for home building suppliers through the end of the century. Offsetting this to some extent will be a reasonably healthy trade-up market, as the more prosperous of the aging babyboomers move to more expensive and spacious dwellings. In addition, residential modernization/improvement activity will show strength, as homeowners seek to maximize the value of their investments. and apartment/condo owners and developers work to attract tenants and conform to changing building and safety codes.

Industrial building investment, by contrast, will show good strength after the economic slowdown plays out, propelled by the need to replace obsolete capacity and ramp up to serve growing export markets in Europe and elsewhere. Institutional construction, especially for health care facilities (to serve a growing elderly population) and schools, also holds above-average growth prospects.

t91 same as tgO

By Erlc Yerdon President American Wood Preservers Bureau

A BROAD cross section of AWPB

A treating plants and presetvative manufacturers were polled in october regarding the prospects for treated wood in 1991. A certain pessimism surrounds the industry and the conclusion is that l99l will be a repeat of 1990 with the possibility of some weakening in the market, particularly in the first quarter.

The volume of CCA and ACZA treated lumber inspected under the AWPB LP-2 and LP-22 quality con-

trol procedures will show an increase in the 1990 calendar year ofapproximately 20/o over the volume reported in 1989. This volume is stilla significant 1406 below the record volumes of 1988.

In 1990, solid increases were recorded through the first eight months, but a significant reduction of treater volumes in September and a weak October are expected to show

Story at a Glane

Tntrra expect more of the ganr, somo mafiet rvekenlng pooslble... loss wlnbr buylttg as rctallers rcly on qulck dellvery . eouthrr€stand uu€stcoatt opilmlsdc...3 bllllon b.L anilcl-' patod.

a poor fourth quarter performance, Uncertainties with the weak economy, interest rates and low housing starts, all compounded by the Middle East problems, make forecasting extremely difl'icult for treated wood production.

There is optimism in the Southwest with increase in the economic activity from the effect of oil pricing. The Midwest expects modest increases following a fairly good 1990 and the West Coast is expected to maintain current levels. The East Coast remains uncertain with hope that it must improve from a difficult l 990.

Treated wood has often shown strength in the R&R markets, particularly in a year of reduced housing starts.

Dealers appear to have gotten used to prompt service from the treating plants and carrying smaller treated inventory, and some of the traditional winter buying programs are signil'icantly reduced.

Lumber inspection in the AWPB LP-2 and LP-22 programs should remain level at approximately the three billion board foot measure.

Good year for hardwood dimension

By Steven V. Lswser Executive Director National Dimension Manulacturers Association

LTHOUGH dimension ship- la ments are slowing down along with the overall economy, we expect that l99l will be a reasonably good year. The demand for furniture, cabinetry, flooring and millwork should remain fairly steady due to continued strength in the repair and renovation of both residential and commercial properties.

I^A- Supply will keep up with demand as dimension manufacturers continue to make the necessary capital investments to expand operations and improve productivity. More lumber producers are expanding into dimension manufacturing as a way to diversify and add more value to their products.

The market for machined wood

products such as architectural millwork, interior trim and moulding, stair case parts and fireplace mantels will increase as the home improvement market continues to grow. More than 50 million homes over 25 years old are good candidates for remodeling work or building additions.

Kitchen and bathroom renovations are the most common remodeling jobs. This is important to dimension manufacturing because the kitchen and bath cabinet industry represents a major market for wood components.

The use of hardwoods in architectural millwork is growing significantly along with the remodeling industry. The U.S. Commerce Department estimates that hardwood materials are used in l0-150/o of all millwork products.

According to the latest NDMA market survey, the furniture industry is the largest customer base for wood dimension, accounting for approximately half of all hardwood dimension component purchases.

Household furniture, with sales projected to increase 4.60/o in 1991, will remain a strong market for compo-

nents as will business and institutional furniture where sales are projected to increase 70/o to around $9 billion.

The export market for U.S. hardwood dimension and flooring products is projected to increase significantly in the next several years. Exports have more than doubled during the past two years and are expected to reach $120 million this year, a 14% increase.

The general outlook for furniture, cabinets and related decorative wood products is positive. Shipments of hardwood dimension and flooring are expected to grow at an average rate of 3-50lo annually over the next five years.

Story at a Glane

HardvYood demand fairly steady with supply keeping up. .. tumiture rcmains a strong market... exports will rise significantly . . . shipments should grwt T/n 5% in the next 5 years.

1.2 million starts

By Nicholas R. Kent Executive Vice President North American Wholesale Lumber Association

T HE BUILDING material indus-

I try has been riding a beautiful wave for several years. That wave has finally hit the beach.

While the foregoing statement is simplistic, it does summarize the latest housing cycle. What compounded the situation, however, was all the talk of "soft landings" and continued stable growth with dashers of Europe '92 thrown in to spice up future prospects. We were also blinded by the savings and loan crisis and the Iraqi invasion of Kuwait.

As housing cycles go, our current drop from l.8l million starts in 1986 to 1.23 million starts in 1990 represents a decline of about 33%.

Uncertainty permeates virtually every aspect of our lives these days. Fuel prices continue to escalate. Bankers, spooked by the sins oftheir

brothers, have become overly conservative, stifling growth. Homebuyers, even if they have money, are reluctant to buy for fear prices are too high or may fall. Remodeling, while a good market, has slowed its growth, at least in the areas of additions and alterations.

Opportunity does exist, however, and some tried and true solutions will help our industry use this period to its advantage. Now is not a time to go it alone. Some manufacturers, trying to get their product closer to the market, have increased their use of reloads. The logistics of this move are sound but the financial aspects do not carry water. More mills are working more closely with wholesalers shifting the inventory expense closer to the market along with the product. This move is allowing those mills to do what they do best, produce lumber, and lumber wholesalers to do what they do best, sell lumber.

Housing represents only one part of the future for the lumber industry. NAWLA predicts total U.S. housing starts for 1991 at 1.2 million units. We believe that 900,000 of these units will be single family with the balance being multi-family units. Lumber. and lots of it. will be sold in

No doom & gloom

By Hal R. Marsolais Executive Director Home Center Institute

S THE economic storm clouds gather, it is interesting to note the stampede to jump on the Chicken Little bandwagon to proclaim "the sky is falling." The nightly news is filled with stories of gloom and doom while experts paint wild scenarios of "what will happen if ." As a nation. we seem to be dedicated to talking recession.

In fact, some sort

ourselves into a deep it is reasonable to expect of economic downturn

after 80 plus months of growth. Most prudent planners had already factored those expectations into their business plans for the 1990-1991 period.

We had anticipated a soft housing market for the early '90s related to population demographics and interest rates. Although the belt tightening of the banking industry has exacerbated the situation in some areas of the country, we can reasonably expect a gradual reduction in interest rates and a subsequent growth in housing turnover as potential home buyers re-enter the market.

Our forecasts call for a 3.30/o real growth figure for hardlines retailers in l99l with a long range overall projection of 5.30/o compounded annual growth for the period 1990-1995. This is still well above the growth projections of 1.70/o for retailers in general during the same period.

other markets.

Perhaps the greatest hope for the future can be found in exports. Even when housing does rebound, demographics suggest that future peaks of activity will seldom, if ever, reach the high levels of the past decade.

Story at a Glance

Lots of lumber will be sold fior remodeling and oilrer markets exports look favorable rrKr€ cooperation between manufacturer and wholesaler.

A number of NAWLA members are already successfully trading lumber in the world arena. More will follow. Again, some manufacturers are already seen going direct, placing inventories thousands of miles and oceans away from their facilities. We believe that a more controllable, more predictable conduit will involve world wholesalers who will take lumber off the hands of manufacturers before it leaves our shores.

In summary, we are now experiencing a bottoming out period following a good home construction period. While remodeling will help make up some of the differences, exports will draw heavy attention. There is heavy interest in strong lumber wholesaler and manufacturer relationships.

Major planning considerations for the period include repositioning strategies as we deal with a mature market and changing consumer demands coupled with increased competitive pressures as the industry shakeout continues. Beyond a doubt, there will be winners and losers, but overall the industry will continue to grow.

Although we recognize that 1991 will be a slower growth period, we do not subscribe to the gloom and doom scenario. As Barry Asmus, economist for the National Center for Policy Analysis, points out, "Economists have predicted eight out of our last two recessions."

Story at a Glance

Expect a gradual rcduction in intercst rates and improved housing markets ...3.T/o ralgrowth for hardlines rctailers in 1991 .. overall industry growth.

Hardwood ready for down side

By Ernest J. Stebblns Executive Manager National Hardwood Lumber Association

I T DOESN'T take an office full of I Wall Street economists to tell a hardwood lumberman that the economy is slowing down. A quick glance at his order file willtellhim without all the statistical analysis.While it's little consolation to point out that we are in the eighth year of an economic expansion

Emost hardwood lumbermen are prepared for the down side of what they know is a cyclical market.

While no one can accurately gauge to what extent the Mideast problems will affect our economic condition, that does not prevent the economists from analyzing each aspect of it in great detail in the press. Sometimes it seems that the tone of published reports, whether optimistic or pessimistic, has more influence on the trend in the state of the economy than the real numbers do - such as changes in the GNP.

Consumer confidence does influence the economy. When confusing or conflicting messages come from Wall Street or Washington, D.C., consumers grow cautious and refrain from spending, and housing and furniture sales decline.

Why are housing starts dipping below 1.2 million units in a country where the population could easily absorb twice that amount? Why is housing so expensive? Is the demand for credit (debt) by business and government finally pushing the individual consumer out of the (mortgage money) market? How much of the cost of that new home is attributable to timber sales never offered because they are locked up in the courts or held back by the agencies who do not want to tackle the preservationists' lawyers?

Has it cost the consumer $1.000. $2,000, $3,000, or more? Will the construction industry ever lead us out of an economic downturn?

Lumbermen today are preparing for

Story at a Glane

HadvYood Indusnry b proparcd for tough Umee r,uood promo tlon needed to rcialn erlsdng custornors and goln nerY oneE wo mugl convlnce the publlc tmeharuetlnglsOK.

a stagnant market. They've trimmed their inventories and are monitoring receivables closely. Their plants are in reasonably good shape having made investments in capital equipment while the market was strong, and have since reduced their debt while production and margins remained firm. They are working smarter, lowering operating costs.

But what can they do about consumer confidence? What can they do

about public opinion? lndustry-wide promotion of hardwood lumber and other wood products is essential during this period. Consumers must be kept aware of not only the quality of real hardwood products, but the real value which they give to the buyer. If the consumer is unaware of that value. then it willnot be home building and furniture that leads us out of our economic slowdown, but the sales of other products such as consumer electronics and automobiles. Industry-wide public relations is just as important. lf, for example, 400/o of our timber supply is locked up in the courts or by government regulations, what will the competition for what is left do to the price of our wood products .at the consumer level? Price them right out of the market when compared to competing products. We need to tell the public that well managed, working forests, not preserves, provide a continuous supply of forest products without borrowing from our future. It really is "Okay to harvest a tree."

The challenge to lumber manufacturers and merchants for l99l is not only to prepare internally for what's immediately ahead, but to prepare their businesses for the rest of the 1990s.

Key word is change

By Roger E. Peterson President and CEO Ace Hardware Corporation

E'RE in an industry where ll changing conditions are the norm, rather than the exception, where prediction is very difTicult, where we most often cannot assure the success of our plans prior to committing resources.

But while we can't be sure of winning beforehand, we can at least learn to hedge our bets through proper preparation and planning. So, utilizing the best information available, we see: Continued strong sales in the hardware, home center, lumber and building supplies industry, with less rapid expansion. Many additional retail challenges such as providing good service while increasing productivity and selling to a segmented market. A slowing of d-

i-y sales but an overall growth ol'the home improvement market from its current $100 billion to $200 billion by the end of this decade. Domination of the market by middle aged consumers by the year 2000 with home ownership up and renters down. Women will head 280/o of households. Money will drive the market as family composition and consumers' values change. Consumers will demand quality, service, value and individual choice in a fragmented market.

For retailers, this will mean increasing personal service despite growing labor shortages, increased

Story at a Glane

Continued strong salqs... less expansion... households headed by women will rcquirc more personal service. shortage of qualified employees, increased labor costs.

productivity pressures and specialized consumer demands. It will mean sharper pricing, good inventory management and utilizing logistics and marketing more effectively. Store format, lighting, use of new technology and packaging, graphics and design will be key elements to retail success.

Effective use of the latest retail technology will be imperative for keeping pace with more competition. Retailers must find ways to treat merchandise on the sales floor so that it will sell itself and allow sales people to concentrate on solving problems that customers have.

One of the most troublesome issues will be the recruitment, training and retention of sufficient numbers

of quality employees. Related to that are the high costs of health care, pensions, fringe benefits, liability insurance and the issues of employee safety, good health and substance abuse.

The '90s are shaping up to be extremely tough, but the strong, those who have identified customer service and satisfaction as their number one job, will prosper and get even stronger.

Change, flexibility and innovation under a partnership arrangement among retailers, distributors and vendors, will be the key words of the '90s. This will provide retailers with the tools and information they need to compete effectively and be successful.

Strong remodeling

By Alan J. Campbell Executive Director National Association of the Remodeling Industry

A S THE decade progresses, our fa industry will focus on increasingly high quality products, efficient and comfortable features to fit specific lifestyles, and a professionalism that will help consumers sift through what is becoming a crowded and somewhat confusing marketplace. With new housing starts down and an uncertain economy looming, many homeowners will forego moving up to a bigger home and opt to remodel their existing structures.

Other factors, such as the country's aging housing stock, are also helping to contribute to the industry's growth. Another factor is that two-income families - particularly the baby boomershave more disposable income and equity, and simply need more space for home of-

Story at a Glance

Continued rcrnodeling grcuvtl need for upgraded skills, prcduct educdion...certified remodeler designation will gain importance.

lndustry deia vu

By J. Phil Latreille President National Wood Window & Door Association

fices. new babies. inlawsvou name it. In addition. many "empty nesters" and seniors, rather than flock south or to retirement communities, prefer to alter their home to suit a new lifestyle.

Today's consumers are more savvy. They know what they are looking for: a contractor whom they can trust, someone who will be dedicated to the project for the duration, an expert in the field. In response to this demand, contractors will need to continue to upgrade their skills, from sales to installation.

That is where the emphasis on education willcome in. We are likely to see, for instance, an increase in the number of remodelers seeking certification. The certified remodeler (CR) designation provides special recognition to contractors who have demonstrated a high level of competency and ethical standards in the remodeling industry.

The professional remodeling industry of the nineties will continue to be diverse, highly competitive and everchanging. The successful remodeler will be one who stays abreast of the whirlwind of information, including the vast array of technologies, products and services. In short, being uninformed or ill-equipped could mean being overcome by one's competition.

With the emphasis on quality and professionalism, the high demand for reputable contractors, the aging housing stock and a decline in total housing starts, the remodeling industry should continue its pattern of sustained growth throughout this decade.

HE YEAR ahead will present many challenges, but none that an astute builder cannot manage by defining and preserving his niche in rynb;t""", the housing market. That the overall housing picture will be regrettable is well known, still, there is cause for optimism among builders specializing in repair/ remodeling and/ or high-end new homes. And along the way, lessons learned from the last recession are timely.

However bleak present times may seem to some, it is doubtful they could ever be worse than the situation the housing industry faced a decade ago. Reviewing a 1981 LSI/ Dodge study, I was reminded of the severity of the decline: "The number of housing starts decreased 27o/o between 1979 and 1980." In such an environment, what good news could the wood window and door industry find?

A great deal. Product categories simply held their own or shifted from new construction to repair/remodeling to yield only modest net losses in unit sales. One star of the last recession was the wood-panel front door.

The last recession was painful for many reasons, and this one won't be the most pleasant experience in the world either. Nevertheless, the astute builder, able to stake out his turf in the repair/remodeling and/or upscale new-home markets, should continue to view wood windows and doors as a distinct asset.

Story at a Glance

l-essons learned in the past will help wood windows and doors to survive low housing starts... emphasis on high+nd, ufscale uses.

I6jlilUlEl_ps

IJttildars lirprc.ss ollcnect its sccond unit in ('larksvillc. T'n.. Nov. 17 . Stottlt,trtvvr utttl .Sltoctrtukcr (Mt'.tt,r lntt,riutiottul Group o/' England) opcnccl in ('harlottc, N.('.. in a ltrrmcr l)iutnond Lunrbcrbuilding irr the l)ort (.harlotte Industrial ('omplcx

('1171s1,11,11.y, I"ttnthcr, liort l-auderdalc. I;1.. has aclcled a 4.5(X) sq. fi. design gallcry at its lloca Raton, l:1., storc 84 l-untbcr opened a l)earlsburg, Va., storc <rn thc sitc ol' the lurnrcr llailay' Lturthcr .

Lox,t,'s 100,000 sq. li. relocilted storc in Crown Point, N.('., is the largcst honrc center storc in the (larolinas . Low't,',s also is remodcling a Snrithfielcl, N.(1., store and reaclying a 44.480 sq. fi. unit for an early l99l opening in Knoxville, Tn....

Ilonrc l)apot has a Port (lharlotte. lrl.. store uncler construction lor a Jan. l7 opcning ancl plans to enlargc ancl inrprove stores in Knoxville. Tn.. and Cllearwater. l:1....

Ilccltinger (ir. will convert fbur North (larolina (Winston-Salem, (i reensboro, liayettesville and Raleigh) units to Home Quarters Warehousc units... cleviating fronr merchandising, Itecltinger opened its llrst alTordable renlal housing project, Burtrt Mills ('rossittg, a 96 unit developnrent in Silver Springs, Md.

Lctckey Homc Center,firt'., Forest, Ms., has closed its Carthage, Ms. store . lVilliams Bros. Lumber Co., Conyers, Ga., lost an estimated $580,000 in inventory during an early Nov. fire

Post & Lumber Preserving Co., Quincy, Fl., is closing . . Jeanerette Lumber, New lberia, La., is protesting assessments

filed by thc parish tax assessor . . I)o.v'lc l.untbcr ('o., Martinsville. Va., has filed for reorganization under Cihapter I I

Alunto littrc.st Prudut'ts. S'tn Antonio. 1'x., opcncrl a lX' in lf oustorr. l'x.... l.oui.sianaPacilitls Jaspcr, -l'x., nrill has closcd until March

Spurtott l"orcst Pxtducts lnr'., was opcncd in ( irccnsboro, N.('., by ('harlcs llroadway, lirrnrer hcacl ol' l'iedntrtrtl Lumhcr <8. Murtttlttt'turing lnt'., tt lbrnrcr Mt('ov' Lutrtber ('o. subsicliary opcrutilrg olr its ()wn sincc Mc('oy's rcccnt liquiclation

('ou.slul [,urrtbcr Pnxtutl,s ln<'. will build a $6 rlillion rnfg. plant in Preston ('ounty, W.V., as a .ioint vcnturc between (.oostal Itmhcr (ir.. Wclclon. N.('.. Misuha.slti & (\t. Ltd. an<l .Suntitotno l"orest.y ('o., Ltd.. both ol' Japan

.\it't'ru l\cilic lrttltr.stri<'.s is now in llilot proclLrction at its new Waco, Tx., winclow plant Mat' Millatt lJloulel is distributing [:'ibrebourrl Tct'h rtologics' Arrowood fionr seven ol' its l)Cs including Tampa ancl Jacksonville. Fl., Atlanta, (ia.. ('harleston, S.('., ancl C'harlotte. N.C....

Irotrt'lod, firc'., is expanding its Shreveport, La., facility by more than 30(Xr ('rcsl Industrks Int., Miami^ Fl.. has launched (ic.sl C. A. R.1j. (Cr.rstorners Are Really [:verything), a telemarketing customer service progranr

Black & Decker (brp. has sold True Temper lfardv,art, and Temper Limited in lreland to llttly Corp. . Peat'lttrec l)oors closed its Las Vegas, Nv., warehouse, returning all rnerchandise and staff to Norcross, (ia., Hq. . ,

('txt.stul l.ttmlx'r ('o. h1s (j'1gatcd u scparalc lrcirtcd prodttcls div.. l:tkl llills, nrgr.. with thc s<luthcrn rcgion olllcc blscd tt ('ott.stul'.s lrlrlorr, N.('., lircilitics Rabcl Ltmhrr ,,8 ('otrrl,()n(nl, ('oluntbus. Ms.. opcncd .\ttrrlitnl l4'ltolcvk' Itmhcr

Wa.st I-turthcr ('o. ancl l'1.1, Murt.s, /rru'. nrldc lhc l9t)0 Atlunt(t ((iir.) 100 (itntpurics list S<luthcrn l)rcssure''l'rcalcrs Association's olllcc nrovccl f'ronr llrcwton. Al., to (iull'Shorcs, Af. . .,lordutt I.umhcr ('o..'l'roy. N.('.. lost its planing {)pa111li1vn ancl lunrbcr storagc shcds in a $2 million f'irc of' unrlctcrnrinccl origin .

7 onpla-lnlund lnc.ls building proclucts groul) carncd $l.tl nrillion in thc third quartcr... (iaor,t:iu-Put'ilic s opcratirrg prolrt wirs $l I I nrillion . . . LottisiuttuI'utiliccarnctl $2|.2 nrillir)n

Gaorgiu-l'ut i/ir acquirecl .tlnbalt Distilbutor.s. Sumtcr, S.('., cxclusivc distributor for Pcathtrc( Doors, lttr. in that statc, alclng with an agreenrent with I)cachtrec ltrr exclusivc distributorship ol'their ;rroclucts in N.('. ancl thc Tri-('ities area of' l'n. (;-l' nrillwork ancl specialty centers in ('olr"rntbia, S.('., and Ilillsborough, N.(1., will house the new clistributorships .

Alpina lingint'cred Products, /nr'., Ponrpano lleach, l'1., sold its woocl products div. to 7'.1 lnternulionul. lrrr'.: locatecl in Oxford. N.('.. thc ncw conrpany is called 4lpirte .Strut'turc.s, lrrt'.

IIaxln'ure ancl building matcrietl.s sttpltlit'rr had u rcvcnue increase ol- | .5(1, in Oct. (latest l'igs.). rrrainly clue to higher prices, according to the U.S. C'ontnten'cDept ...

Housing s/crlr declined in Oct. (latest figs.) for a record ninth nronth in a row to 1,041 nrillion. with single lamily starts {alling loh and multifanrily, 26olt . . . building permits were off 6.8'l' starts in thc south dropped I 2%r

ls home improvement recession resistant?

By James Halpin President HomeClub, Inc.

f, S WE move into the new frl decade, the home improvemenr industry faces the continuing challenge of maximizing its efliciency

&t:,"ifru

while dealing

with the complexitites of the '90s economy.

Amidst rumors of a recession - a slumping economy, rising oil prices and high interest rates - every business needs to take notice. While no one is ever recession-proof, the home improvement industry is, to a large degree, recession resistant. As the real estate market softens and houses become harder to sell, people tend to spend more time and money repairing and remodeling existing homes. Since a

home represents a principle investment, there are strong economic reasons to enhance and preserve it.

In our industry, we sell lumber mainly for additions or repairs, whereas lumber yards are traditionally more dependent on the number of housing starts. Our locations carry broad assortments of materials and brand name products that make the home improvement process simpler and more productive. With this in mind, I feel that one of the largest growth areas in the next year will be the warehouse segment of the home improvement industry. Warehouse formats have built-in economics that allow them to operate with lower expense ratios while providing a convenient, one-stop resource.

This is not to imply that there will not be room in the industry for more traditional home centers and mom and pop hardware stores. The key to success for each type of retailer in the industry is to establish a comfortable niche. While small hardware

operations cannot compete with the large home centers on price or selection, they have the advantage of knowing their customers on a first name basis and initiating long-term relationships.

Retail leaders in the '90s will be those that maintain excellence. not just in planning, but in execution. Customer service will be an important factor, as will the ability to maintain a competitive price policy. Informational programs, that help customers gain both the confidence and skills necessary to become do-ityourselfers, are a necessary part of educating and expanding your customer base. The most successful retailers will tailor their businesses to be area-specific with both marketing programs and merchandise mix individualized for each geographic region. The challenge will be to add service features while maintaining a healthy profit margin,

Story at a Glane

Biggpst grouffr in warchouse re tail, though uell run traditional and small operatorc can prosper if they senre a niche. exceF lence in execution will mark the leaders.

CALENDAR

DECEMBER

Metroplex Hoo-Hoo ClubDec. 6, Christmas party, Trail Dust Restaurant. Dallas. Tx.

Sacramento, Ca.

Ponderoea Plne, Sugar Plne, S-P-F, Whlte-Flr, Douglao Flr, Cedar

James A. Haas, gen. mgr.

Richard H. Mills, Melissa Morinelli

Mouldlngo, Mlllurork, Cut Stock, Plywood, Lunber, Partlcleboard

IIIPORTING: Radlata Plne

S4S end Rough C & Bettcr and Rough itouldlng & Better

Sales Agents for:

Adams Moulding, El Paso, Tx. W&W Moulding Co., Loomis, Ca.

P.O. Box 255546. Sacramento. Ca. 95865 US Wats (800)627-5319

(9r6t972-7282 F AX 9t6-972-7290

San Francisco, Ca.

Mahogany, Meranti, Kerulng, Ramln, Nyatoh

Franklin O. Billings

Mouldlngs, Millwork, Plywood, Industrlal Hardwood, Truck Decking, Imported Hardwood/Softwood Lumber

EXPORTING: Softwood Cut Stock, Hardwood Lumber & Dimension, Softwood & Hardwood Speclalty ltems

1050 Sansome St., Ste. 300, San Francisco, Ca. 94lll (415)391-6700 FAX 415-981-4130

Dave Kipp, mgr.

Omaha. Ne.

Jackie Scoles, Jeff DeBartolo

S.P.F. Dimension, F/L Dimension, Hem.Fir Dimension, CCA Treated Lumber, Cedar Siding Products

Southern Plywood, Western Plywood

One Central Park Plza, Ste. 200N, Mail Drop 27, Omaha, Ne. 68102 (4021978-4525 FAX 402-978-4526 (800)395-7898

Nrtlonrl Herdwood Lumber AssocirtlonDec. l0-ll. forestry lor non-foreslers seminar, NHLA Educational Building, Memphis, Tn.

Virginia Buildlng Meteriel AssocirtionDec. ll, financial management seminar. Charlottesville, Va.

Hempton Roads Hoo-Hoo ClubDec. 13, meeting. Rodman's. Suffolk. Va.

Sprcecrast Hoo-Hoo ClubDec. 20, meeting, John Boy's Restaurant. Cocoa. F-|.

JANUARY

Cotter & Co.Jrn. 6-9. True Value lumber conference, Buena Vista Palace Hotel. Orlando, Fl.

National Housewlres Mrnufaclurers AssociationJan.69, international housewares expo, McCormick Place, Chicago, ll.

North Americsn Wholesrle Lumber AssociationJan. 6I l, executive management institute, University of Virginia, Charlottesville, Va.

ServistarJrn. 7-9. market. Marriott World Center, Orlando, Fl.

Hampton Roads Hoo-Hoo ClubJan. 10, meeting, Rodman's Suffolk, Va.

Lumbermen's Club of MemphisJan. 10, installation luncheon, Racquet Club, Memphis, Tn.

Hardware Wholesalers lnc.Jan. ll-12, market, Stouffers Hotel. Orlando. Fl.

Handy Hardware Wholesale Inc.Jan. ll-13, market, George R. Brown Convention Center, Houston, Tx.

House Hasson Hardware Co.Jan. 13-14, winter market, Opryland Hotel & Convention Center, Nashville, Tn.

Carolinas-Tennessee Building Material AssociationJan. lE-19, annual buying show, Charlotte Convention Center, Charlotte, N.C.

General Sentry Hardware Co.Jan. 19-20, Super Show, Marriott World Center. Orlando. Fl.

Atlanta Hoo-Hoo ClubJan. 21, initiation meeting, Houston Mill House, Atlanta, Ga.

National Hardwood Lumber AssociationJan. 2l-22, sticker stain, sap stain & wetwood workshop, NHLA Educational Building, Memphis, Tn.

Kentucky Lumber & Building Material Dealers AssociationJan. 23-24, annual convention, Hyatt Regency, Louisville, Ky.

Lumbermen's Association of TexasJan. 23-26. board & committee meetings, Four Seasons Hotel, Austin, Tx.

Houston Hoo-Hoo Club - Jan.24, Sports Night, Atlen Park Inn, Houston, Tx.

Palmetto Wholesale Co.Jan. 24-25, dealer market, Cantey Building, State Fairgrounds, Columbia, S.C.

Virginia Building Material AssociationJan. 24, financial management seminar, Charlottesville, Va.

CC DistributorsJan. 25-27, Sentry market, Wyndham Hotel, Corpus Christi, Tx.

United Hardware Distributing Co.Jan. 26-28, market, Opryland Hotel & Convention Center, Nashville, Tn.

Quick Quotes for 1991

A random sampling of ideas and opinions

"There will be a significant deceleration, but the important thing is, there will not be an absolute contraction."

Jerry L. Jordan Senior Vice President & Chief Economist First Interstate Bancorp.

"Projected declines range from 20/o to 5o/o in the next six to nine months to a frightening 500/o in three to four years."

Dan Dorfman Columnist USA

Today

"Real estate is going from its heyday to its hell day."

Michael Sumichrast

Former Chief Economist National Association of Home Builders

"Money is tight, Ienders aren't lending and we're recession bound."

Jordan Clark President United Homeowners Association

"The recession that now appears to be developing won't be deep or last long."

Industrial Newsletter, Inc.

"The consumer is scared, hesitant and worried about the future."

John Tucillo Chief Economist National Association of Realtors

"A recession is coming to the Southeast. In fact, it may have arrived."

Glenn Ruffenach Wall Street Journal

"The U.S. economy is fragile, but not broken as the present pervasive gloom would indicate."

Gail Fosler Chief Economist Conference Board

"Next year should bring the slump which began in 1990."

George A. Christie

Vice President & Chief Economist McGraw-Hill's Construction

end of the building

Information Group

"Over the next 12 months, we believe that Fed funds could sink below 6% - a move that would take the U.S. prime rate below 8%."

Dr. Robert J. Barbera Shearson Lehman Brothers Inc.

"lt's now crystal clear the economy is in a recession."

Mark Vitner

Barnett Banks

lAccordion doors designed for use where performance is important for HOMES . OFFICES . CFIUR CHES . RESTAARANTS .INDUSTRY

lCustom-sized room dividers shipwithin a two week production cycle from the factory lAccordion doors custom sized to your customer requirements

Custom orders tnean profitabln return on inaestmentno inaentory! TOODFOLD

50r-372-3r01 &7-85t-4270

404.3ti5-0n20 ,10+79(11280

Iiashvilc, TN

KNOXVILLE IDOR & lllllf,ioRff,Knoxville, Tl{

DALLAIi WHOLESALE. Dalas. TX

HUTTIG SASH & InOR CO., Fr€dericksbug, vA

IVOOD]'OTD ACCORDION DOOR$ ..INS?UNT WALLS WHEN NEEDED"

Anyone can take orders over the phone.

But when it comes to fi.Uing ordere for wood products, that's where Willamette breaks rank.

Our salespeople know their way around the mill because they go there often. They check the quality of the

lumber and plywood first-hand, to make sure you're getting exactly what you've ordered.

Besides knowing their products, they also know your market. And when it's time to fill orders for your customers, the products you need are at your command.

So if you're looking for a few good men and women to do business with, call Willamette.

After all, if we only took orders, we might as well sell fast food.

Instead of wood.

Willamette Industries, Inc.

Lumber & Plywood DMsions

Western Lumber and Plywood

Albany, OR (503) 926-7771

Southern Lumber and Plywood

Ruston, LA (318) 255-6258

Atlantic Plywood Rock Hill, SC (803) 328-3U4

Bill Carter, Southern Lumber Sales

SOUTHERN ASSOCTATION

Lumbermen's Assoclatlon of Texrs has approved l)on Smith Sr. and JelT Chapman as national directors with Walter Foxworth and Dick Ledermann as alternates.

Member services is the new name for the research and development committee. The membership committee has approved a new specialty retailer associate member category. The education committee is planning an in-state lumber mill tour for this winter.

Convention chairman Jeff Chapman and executive vice president Barbara l)ouglas are working on meeting schedules lor the l99l LAT Expo, April l8-20 in San Antonio.

Virginia Building Material Association has an advanced financial manag,ement seminar scheduled lor Jan. 24 in Charlottesville.

Jim Pence will speak at this session

which will include inlormation on shorl and long term employee incentive and compensation prog,rams, as well as how to plan lor growth and survival.

Csrollnrs-Tennessee Buildlng Mrterial Associailon will sponsor seminars on Dec. 5 and 6 in Charlotte. N.C.. for owners, general managers, sales managers and sales people.

Brent Taylor, president, The Taylor Croup. Greensboro, N.C., will explore proven approaches to improving the bottom line with increased sales and improved margins at the firsl session and improving the productivity and sales skills of the outside sales force at the second meeting. Both will be held at the Holiday lnn North, Charlotte.

f)on A. Wolf, president of Hardware Wholesalers. lnc.. will be the featured speaker al the association's building products buying show, Jan. l8-19 at the Charlotte Convention Center, Charlotte, N.C. His topic will be "Together in Growth-Parlners In Action." This is the theme of the meeting which will bring together suppliers, dealers and the CTBMA. The Omni Hotel will be the location of several events including the president's reception,

ARKAIISAS directors for Mid-America Lumbermens Association: James Terry, Mechanics Lumber Co., North Little Rock; Ben Mayo, Mayo Euilding Supply, Inc., Bentonville; Don Thompson, Barton's, Pine Bluff; David Churchman, Moore & Cone Lumber Co., Inc., Newoort; Harris Kimbell, Curt Bean Lumber Co., Glenwood. (lower photo) 0klahoma directors: Robert Henkle, Grand Country Home-

works, Grove; Cary Ketcham, H. E. Ketcham Lumber Dealer, Muskogee; Dave Bond, Cedar Creek Wholesale, Inc., Broken Arrow; K. C. Rothschopf, Jr., The Lumber Mart, Guymon. Directors not oictured: John A. Davis, Whit Davis Lumber Co., Jacksonville, Ar.; Henry Bockus, Gordon White Lumber Co., Oklahoma City, and Daivd Heien, Marlow Lumber Co., Marlow, 0k.

Moulding & millwork

By Robert Weiglein President Wood Moulding & Millwork Producers Association

A LL PREDICTIONS and eco- lil nomic forecasts point towards a domestic market much the same as we are now experiencing. If that is the case, the bulk of our domestic market will be the remodeling and upgrading of existing homes. One million new home starts seems to be the current trend. This makes one realize that home prices are going to continue to soar in most parts of the country. The homes that sell the best, for the most dollar value, are the upgraded homes that are well finished with decorative mouldings and millwork.

With all the unsettling things going on in the world, it is hard for the average home buyer to make the decision to buy a home. But when they do make this move, they expect to get something for their money. This is where the smart builder makes his profit, building an attractive, well designed home finished off with an eye appealing blend of mouldings and millwork.

The new found freedom for millions of people in Europe, along with the combined European Market through EC-92, is going to create a phenomenal market place for the lumber producing nations. This is not going to be an overnight happening, but eventually it will happen. When it does, WMMPA members plan on being suppliers of good quality millwork to these markets.

Due to recent legislation and the Super 301 negotiations, which involve shipments to the Pacific Rim, and the new situation in Europe, we are confident our products are going to be in demand in new world markets. Many already have started marketing internationally.

WMMPA members have some of the world's most advanced woodworking technology. Our production and quality is unmatched anywhere in the world. Quality conscious buyers in the sophisticated world market demand this. Companies that

produce mouldings and millwork under the WMMPA logo are fortunate and excited about the future.

Story at a Glance

@air & rcmodeling will be the bdght spot c housing drags along at one million starts rrxre exports to the Prcific Rim and Europe. naw material supply a prcblem.

The lone downer in all these plans is the availability of raw materials for our plants, but I am sure that the people of this nation will soon realize that we cannot survive as a free people and industrious nation without manufacturing our own products. We must manage and utilize our forests and continue to be a world leader in the manufacture of good products.

Stay liquid

By George A. MacConnell Senior Vice President Georgia-Pacific Corp.

HE KEY word for building

TI products retailers used to be location. In these economic downtimes, it has changed: retailers need to stay liquid.

With economic uncertainty, retailers need to reexamine their cash flow. And since inventory represents 400/o to 700/o of a re[ailer's assets, it makes sense to look at how that inventory is being managed.

Cash can be "found" in inventory. Retailers can begin by examining how existing inventory was acquired and how it's being maintained. Dust offthe dead or dying inventory and hold sales to raise cash. Next, look at delivery and inventory-

(Please turn to paCe 33)

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$$$$$$$

SFPA's 75th annual

It ROGRT:SS mingled with remif niscing at the 75th anniversary celebration and annual meeting of the Southern l:orest Products Associatiort.

Close to 300 members, families, staff and representatives from related organizations participated in the meeting at the Sheraton Music City Hotel. Nashville, Tn., Oct. 2l-

T. H. O'Melia Jr.. Scotch Lumber Co., Fulton, Al., succeeded Eugene G. Parker, Westvaco Lumber, Summerville, S.C., as chairman of the board. John Shealy, Willamette Industries, Ruston, La., was elected vice chairman; Clary Anthony, Anthony Forest Products, El Dorado, Ar.. treasurer. Parker became immediate past chairman. Karl W. Lindberg was re-elected president as was Lionel J. Landry as secretary.

Jerry Norris, Westvaco Lumber, was appointed chairman of the Southern Pine Marketing Council, a

promotional cooperativc composed of the SI:PA arrd the Southeastern Lumber Manulircturers Association. Terry Clarke, Anthony Timberlands, Inc., will serve as vice chairman.

In addition to selecting new officers, this group previewed updates of the marketing program, reviewed the budget and heard program proposals from SFPA staff members.

Rltllt{G IHE BAIIGE at SFPA's barn dance Ill John Nichols, John McShan. [2] Karl Lindberg, John Hightower [3] Arthur Temple. [41 John Hodges-Copple, Harold Maxwell. (51 Dwight Harrigan, Sam Robinson. 16l Stan & Kathy Elberg. (71 Gay & Jack Stevens. (81 John Batson, Clarence Young. l9l Marvin Willey, Clil Jones, Bob Grillin (l0l Chip & Susan Harrigan ll ll Louis & Croom Finlay, Ann Plummer.

NEtllLY elected SFPA ollicers: John Shealy, vice chairman, Karl Lindberg, president; T. H. 0'Melia Jr, chairman; Eugene Parker, immediate past chairman; Clary Anthony, t reasu re r.

S0UTllERll Forest Products Association convention delegates: lll Appie & Tom 0'Melia, Dianne Stallworth. (21 Gayle & Clayton 8arns. l3l Rusty & Terry WobO, Oian-e & Tony DaSilva. l4l June & Clary Anthony. (51 Sam Robinson, Peggy & A. J. Waechter. l0l Ron & Donna Tillman. (71 Kim Twittv. Dan House. [8] Cynthia & Alan McMillen, Jldy Anderson. (91 Steve & Karen Neal, Earnestine & Mike Easterling. ll0l Rachael Camp, John McShan. llll Nany Eliades, Bill Booth, George Eliades. ll2l Bob & Anna Barrett. lt3l Nancy & Don Jaenicke. ll4l Ron & Jill Willis. llSl Vergie & John Shealy, Skip Seaman. ll6l Ralph Gage, Bob Griffin. (l7l Pat Patrick, Virginia Harrigan. ll8l Laurie & James Bibler. ll9l Jinx & Robert Pollard. l20l Ronnie Bates. 12ll John Hammack, Kerlin Drake.

The National Forest Products Association treated wood quality assurance task group met in conjunction with the SFPA convention. John Hall, American Wood Preservers

Institute, presided over the session which reviewed proposed bylaws and a tentative budget presented by Eric Yeadon, American Wood Preservers Bureau. The proposed pressure treated wood quality assurance organization, when it reaches its final form, will be an overview organization open to a broad membership. Much of the project is modeled after the American Lumber Standards Committee.

Investigative journalist Jack Anderson was a provocative luncheon speaker, sharing his views of the federal budet deficit and insights on the Persian Gulf crisis. Washington bureaucracy was targeted as the main cause of the deficit.

The final banquet was a cham-

pagne toasted celebration of SFPA's 75 years of industry leadership. Highlighted by an excellent video presentation of industry and association highlights, the diamond anniversary party was a gem of a way to conclude yet another successful SFPA milestone.

Story at a Glance

75th annivercary marked in theme and video... Southem Pine Marketing Council prolnc tions rcvieyved O'Itlelia elected chairman ... related meeting of qualfi assuranoe task group.

NLBI/IDA Bodd Accopt! Stldoglc Pbn

Restructuring of the governing bodies of the association and redirecting the mission and priorities for the future were approved at the National Lumber and Building Material Dealers Association's 74th annual convention in Colorado Springs, Co.

The strategic plan voted on by the board will serve as a blueprint for future action. Bob Curtis, Curtis Lumber Co., Ballston Spa, N.Y., accepted the office of president with J.

Howard Luck, Manassas Lumber Corp., Manassas, Va., filting the president elect spot. Gerald Olrich, Oxford Lumber Co., Oxford, Mi., became vice presidentl Ray Nunn, Simms-Moore Lumber & Hardware, Frisco, Tx., vice president and treasurer, and retiring president William P. Morton, Home Lumber Co., Hazard, Ky., chairman, Gary W. Donnelly, the newly appointed executive director, was named secretary.

Mountain States Lumber and

Rounds & Porter Co.

Bulldlng Productr Dlgcrt

Building Material f)ealers Association hosted a grand orrening reception for the Nov. t-4 convention. Celebrating its l00th anniversary, the Englewood, Co., based afliliate used a western theme for a gala "salute to a Century of Volunteerism to the Lumber Industry."

Dr. Michael LeBoeuf, University of New Orleans, New Orleans, La., addressed the kickoff breakfast hosted by the NLBMDA Manufacturers and Service lndustry Council, telling retailers how to keep customers happy. Seminars covering management, government regulations and personnel policies were interspersed with business sessions. a past presidents and awards luncheon, a LuDPac fund raising dinner, a roundtable on industry concerns and the concluding reception and presidents dinner.

Redwood Executive To Retlre

Keith Lanning, president and ceo of the California Redwood Association, will retire at the end of December with Christopher Grover, vice president of advertising and promotion, assuming his responsibilities.

With CRA for 25 years, Lanning is credited by many in the industry with recognizing in the early '70s the potential of the deck market. Tom Malarkey, vice chairman, Pacific Lumber Co., said, "The idea caught on slowly at first and then simply exploded into the enormous, multispecies national deck market we know today."

Jim Brown, Arcata Redwood, who is chairman of the association, said, "Through good times and lean, Keith has always focused first on the well being of the CRA."

I$tEW PRES|OEiI of lhe National Lumber and Building Material Dealers Association Bob Curlis keeps the home fires burning with wood he chops during lunch,

J. Scott Bittinger is now technical sales coordinator lor F'ibreCem Corp., Charlotte, N.C., according to pres. George Suter.

PERS NALS

Kevin Tillman has been named gen. mgr. ol Foxworth-Galbraith Lumber Co., Borger, Tx.

George C. Vaughan is the new pres. ol Alamo Forest Products, San Antonio, Tx., a subsidiary olVaughan & Sons, which his great grandlather lounded in 1893.

Glen Erhardt has joined Epperson Lumber Sales. Statesville. N.C.

John N. Galloway, pres., Hood Industries, Hattiesburg, Ms., has been named chairman of the American Plywood Association board of trustees. Bill Gregory is vice chairman.

Louie R. Davis, chairman of the board, Henderson & Baird Hardware Co.. Greenwood. Ms.. and South States Sentry, Inc., Shreveport, La., has been elected v.p. of Sentry Hardware Corp. New directors include Jerry Barton, General Hardware Co., Atlanta, Ga.l Charles E. Redmon, S&T Wholesale Hardware, Louisville, Ky., and Steven Kellar. West Texas Wholesale Supply Co., Abilene, Tx.

James W. Surane is now pres. of Vermont American Tool Group, Lincolnton, N.C., replacing Donald Sell.

R. Bert Hawk has retired as exec. director of the Southern Pressure Treaters Association alter 56 years in the industry. John Brennan succeeds him, and Sandy Rockert is the new office sec.

Parker Beebe. owner. Beebe Lumber Co.. Amarillo. Tx.. has been elected pres. of the Amarillo ['.xecutive Association.

Craig D. Weisbruch is now v.p. of mktg., gypsum products, at Gold Bond Building Products, Charlotte, N.C.

John Gustafson, Ceneral Products lnc.. l:redericksburg, Va., has been promoted to v.p. of mfg.

Randy Collins has been named mgr. of purchasing & transportation at Dixie Plywood Co., Savannah, Ga. Grady Varnum is the new softwood plywood buyer.

Roger llaxter has been promoted to mgr. of advertising production systems at Lowe's Cos.. North Wilkesboro, N.C. Honored in the general office employee suggestion program were Rita Adams, Sharon Burchette, Gretchen Heunemann and Karen Bumgarner.

William D. Pelon is the new store mgr. at Lowe's olCrown Point, Charlotte, N.C.

Blair Gaynor is new to millwork lumber sales at Mountain Pine, Conley, (ia. Railey Powell, Powell Hardwoods Manufacturing Co., Brownsville, Tn., has been named Lumberman of the Year by the Lumbermen's Club of Memphis.

Gary Martz, Temple-lnland, Diboll, Tx., and pres. ofthe East Texas HooHoo Club, presented $750 to the East Texas Forestry Museum, Lufkin, Tx., donated by the club in memory of the late Jack Hendricks, Angelina Hardwoods. Lufkin.

WHAT'S NEW WITH YOU?

Building Products Dlgesl wants to know when you changejobs, get a promotion, take a vacation, get married, have a baby or receive recognition. Send your note to Building Products Digest, 4500 Campus Dr.. Suite 480, Newport Beach, Ca. 92660 or call (714) 852-1990. We're waiting to hear from you.

Trey Cline is now retail sales mgr. at Lowe's, South Boston, Va.

Clifford T. "Kip" Howlett Jr. is now v.p. of environmental & government affairs for Georgia-Pacific, Atlanta, Ga.

Scott Malone is the new co-mgr. of 84 Lumber, Winchester, Ky.

Michael Moore is new to Perry Lumber Co., Perry, Ok., as mgr., according to owners Jim and Sandy Soulek.

Jim Lovell, v.p., Oklahoma Lumbermen's Association, has left Consolidated Lumber, Enid, Ok., to join a development firm in Vail, Co.

Fernando "Fred" Ganivet is the American Plywood Association's new field rep for So. Fl. Jim Gogolski is handling Louisville, Ky., and Bryan Readling, Birmingham, Al.; Chattanooga and Nashville, Tn., and Ga.

Chris Villarreal, Currie Lumber, Baton Rouge, La., won a lour-day fishing trip in Dow's Alaskan Angling Adventure competition, along with Tom Lasse, ABC Supply, Houston, Tx.l Paul Casey, Carolina Builders, Raleigh, N.C.; Charlie McWhorter, Clay County Builders, Manchester, Ky.; Reid Adams, Coler-Adams, Lawrenceville, Ga.l James Kennemer, Frisco Wholesale Lumber, F'risco, Tx.; Tom Quesenbery, Lowe's, North Wilkesboro, N.C., and Keith Watts, Plywood l)istributors, Houston.

Mike Crowl has joined Owasso Lumber Co., Owasso, Ok., in sales and management, reports owner Harold Merrill.

James N. Shaffer has joined AmeriMark Building Products, Raleigh, N.C., as v.p. of management information systems & materials management, according to pres. Gordon D. Bell.

Robert J. Funk is now Atlanta. Ga.. architectural rep for Azrock, San Antonio, Tx.

Ronnie Elmore is new to sales at Austell Forest Products, Reform, Al.

Matt Layman, The Pine Page, Burlington, N.C., and his wife, Linza, are the proud parents of Elizabeth Linza. born Nov. 8. 1990.

Les Day has been named mgr. of Furman Lumber's Atlanta, Ga., distribution center, according to Barry Kronick, pres. and ceo.

T. Marshall Hahn, chairman and ceo, Georgia-Pacific, Atlanta, Ga., had the chemistry laboratory building named after him at Virginia Polytechnic Institute & State University, where he served as pres., 1962-7 4.

Ed Sedlak has been promoted to marketing at Abitibi-Price.

Rick Donaldson was named operations mgr. at Great Southern Wood Preserving's new Sumterville, Fl., treating plant. Les Gasperson is mktg. mgr., and Doug Moulton, sales mgr.

Rick Briggs is now sales mgr. of Weyerhaeuser's Greensboro. N.C.. customer service center. Jack MacDowall is gen. mgr.

James T. Schaffer is now exec. v.p. and coo of Builders Square, San Antonio, Tx.

Jerry Smith is the new coo of 84 Lumber. Kurt Stump is v.p. of finance, and Ron Butler, v.p. of mktg. and advertising.

Lynn Gweeney is now handling all ltalian imports for Mungus-Fungus Forest Products, Climax, Nv., according to owners Hugh Mungus and Freddy Fungus.

NEW PR DUCTS

and selected soles ofds

Show Openere

An operating display for automatic gate openers is now available from GTO, Inc.

Measuring 48 in. wide by 30 in. deep by 60 in. high, the display comes with full color graphics illustrating and explaining a typical installation and operation of the Ml00 Mighty Mule opener. Included are a miniature chainlink swing gate, all standard components

The Burlap Wall

Burlap wall panels featuring all natural, heavyweight jute fabric laminated to a nominal l/2" structural wood fiber board are new from HomasOte Co.

Recycling Program

A stacking bin system said to ease separation of trash and recyclable items is new from Tucker Flousewares.

Available in l2-, l6- and 20 gallon sizes, the durable, weather resistant bins feature secure lids that can be locked in open and closed positions and extra-wide, unobstructed openings. A dolly makes for easy transport.

used in the system and a push button to activate the system for demonstration. There is storage space under the table for four systems and room on top for consumer brochures, instructions and accessory catalogs.

The table's legs can be removed to create a shelf display or the entire gate section can be detached and used as an on-site demo/display.

Trivia While You Wait

Cassette tapes featuring facts mixed with music for "on hold" telephone callers to retail stores are now available from On-Hold Infosystems. Called Earcookies, the tapes are available in a variety of subiects.

The 4 ft. by 8 ft. panels, which are said to be free of asbestos and formaldehyde additives, provide a tackable surface that conceals tack holes, reduces sound, and is paintable.

Weatherproof Windows

A new line of energy efficient vinyl windows and doors has been introduced by Viking Industries.

The 9000 series is comprised of patio doors and single hung, fixed picture (gable, housetop, octagon), lixed radius top (circles, eyebrows), horizontal slider, casement and awning windows.

Features aiding in maximum thermal performance include multichambered profiles, standard l " overall glass, interlocking mull strips, precision-mitered welded corners, integral screen pockets, positive locking cam latch, high performance glazing options and rot resistant, silicon-treated fin seal weatherstripping.

In addition, integral finger pulls reportedly make opening and closing

easier, a reinforced meetrail provides high strength and rigidity, sleek profiles increase viewing area and wrap-around, pre-punched nail fins simplify installation.

Kid Gloves

Work gloves constructed to stand up under hard wear are now oflered in children's sizes from Blue Hill Products.

The product reportedly is colorless, odorless and harmless to people and pets.

Each l6-oz. trigger-spray bottle can protect 300 sq. ft. of valuables and flammable items.

Set Tight

A two-component epoxy mortar system which is impermeable, watercleanable and 1000/o solid is new from Bonsal.

Soft genuine leather completely covers palms and thumbs, extends along the facings, and over the tips of the other fingers and the knuckles. They are finished with cotton backs, knit cuffs and double stitching.

Reportedly identical to top quality adult-size gloves, they come in four sizes for ages 3 to 13.

Adhesive Additions

New lines of caulks and adhesives have been designed specifically for the do-it-yourselfer by Ohio Sealants.

The Caulkonce line consists of latex, all weather sealant, acrylic latex with silicone, and multi-purpose caulks. Quick Bond products

Designed for setting ceramic, brick. stone. slate and similar materials on floors and walls, B-150 Epoxy Adhesive offers high acid and alkali resistance. Its high bond strength makes it suitable for both heavy duty and non-rigid flooring.

It may be used on most struc-

Video Hello

A video door-answering system that allows homeowners to see and hear callers without being seen themselves is new from NuTone.

When a button at the door station is pressed, a chime sounds and the caller's voice is transmitted to the monitor station and his face appears on its 4" black and white screen. Homeowners pick up a telephone-like handset to have two-way conversations. If the handset isn't picked up, the picture will remain on the monitor for about 30 seconds after the chime.

include general purpose, multi-purpose, heavy duty construction and waterproof tileboard adhesives.

Fire Prevention ln A Bottle

No Burn, a non-toxic, non-staining, natural formula that retards flames and smoke, is now available from Imperial Marketing Co.

turally sound, dimensionally stable, dry surfaces such as plywood, backerboard, some metals, drywall, cured plaster, concrete, masonry, wax-free asphalt, formica, vinyl-type resilient flooring and existing ceramic tile.

Tan in color and easily applied, it is an ideal setting compound for pregrouted ceramic mosaics, flooring and ribbed or button-backed pavers.

FREE READER SERVICE

For more information on New Products write Building Products Dr'gest, 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!

The entrance can be checked by lifting the handset, activating the door camera and microphone. The camera features infrared Leu's to provide illumination at night, automatic iris to adjust to changes in outdoor light intensity, and wide angle lens. Monitor stations can also accommodate up to four optional surveillance cameras, with an on/off control for each.

Portable Motlon Sentor

A compact indoor motion sensor light which can be used on a tabletop or easily mounted on a wall to automatically provide momentary lighting is new from Hitachi.

The small, triangular-shaped unit uses an infrared sensor to detect body movement, turning on the integrated light for about l5 seconds. A photo sensor activates the detecting system only when the room's ambient light is Iow.

It is powered by four "C" batteries or optional acldc adaptor.

Chlorlne Converter

Rainshow'r, a compact device said to reduce free chlorine in shower water by 90%r, has been introduced by Vicki E. Jones Sales/ Gifts.

The device reduces the adverse effects of chlorine on skin, hair and sensitive areas by changing chemically unbound chlorine into zinc chloride, a harmless salt.

Each unit includes an attached water conserving shower head. A chrome-plated, solid brass, designerlook shower head is optional.

lllumlnatlng Addrerrer

The NightFinder backlighted address plaque from Lamplighter Industries mounts on home exteriors to provide maintenance-free, high visibility illumination of street numbers for less than a penny a day.

The plaque is said to be wafer thin, cool to the touch, highly durable and weather resistant. Frames are cast aluminum or solid antiqued brass with traditional styling in a choice of four colors.

Vent Vest

A molded plastic cover for home rooftop exhaust ventilators is now available from Kayann Enterprise.

No Pain Drain

A new remote control kitchen drain from Ceberit opens and closes with the turn of a deck-mounted knob. Moving dishes and putting hands in water to lift a basket strainer are avoided.

A sturdy metal cable connects the knob to a lever. which lifts the strainer. Included are stainless steel basket strainer and flange.

Available in six decorator finishes, the non-corrosive drain fits into the standard 3-l/2" hole in stainless steel, cast iron, enameled steel and composite sinks.

Easy Cover keeps rain and snow out of the attic while preventing heat from escaping in the winter. Its interlocking grooves allow easy installation with no tools or hardware. And during summer, it can be taken off the ventilator and separated into four smaller sections for storage.

The Quality Leader in Treated Wood Producfs

Shower Ensembles

A "direct-to-studwall" shower ensemble featuring Durawall walls and Durabase floor in white, bone or silver is new from E.L. Mustee & Sons.

FREE READER SERVICE

For more information on New Products wite 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!

Power Plate Gover

Safe-Let, a twin-receptacle-hole outlet plate with a built-in spring mechanism that closes the cover when an electrical plug is disconnected, is new from Molvan Enterpnses.

Enclosures come in silver or gold with horizontal striped, tempered safety glass. Offered are four sizes: 34" x4S" single threshold, 36" x 36" single threshold, 36" neo-angle and 36" double threshold/corner.

Textured Walls

Fabric-backed wallcoverings meeting Class A fire requirements are new from Borden. Available in27-in. wide by 27-ft. long double rolls, the durable unpasted wall coverings come in l5 paG terns in 30 colorways, including stitched, woven and silken looks.

The product's locking tabs discourage small children from opening the plate covers, but the unit can be easily opened by adults for use. The ABS plastic cover is offered in a variety of colors.

.Curing capacity of 48" W x 192"L x 10.5" Thick .50kw Generator

.Automatic power tuning

.Heated platens & infeed table

.Special extended length powered infeed lay-up table

.Wired for 440 volt, three phase, 60 cycle operation

.Special dead feed roll outfeed table

. Also Available.

Black Bros. 22D-650-32"

Top & Botom Adhesive Spreader

Garage Door Safety

A unique safe-T-close non-contact sensor system that stops and reverses a closing g,arag,e door if the system's infra-red beam is broken has been introduced by Stanley Home Automation. Reportedly, the door can not close if an object blocks the path of the beam.

The system is quickly and easily installed with the industry's first one-piece receiver/transmitter and built-in beam alignment indicator. The feature is available as optional equipment on all seven Stanley U-lnstall garage door openers.

Bench Marks

Benches lrom Bench Manufacturing Co. are available with custom lettering.

Personalized messages are expertly designed tooled on a 6-l/2" diameter medallion.

now and

Benches feature vertical cast aluminum back spoke section, cast iron stanchions with weather resistant polyester powder coating, and Douglas fir stained in a variety of shades.

R&R Upbeat

By Robert C. Doran Director, Marketing Research & Planning Gold Bond Building Products

llt HILE the residential repair and lU remodeling market is difficult to track, most experts believe it is significant with approximately $l0l billion spent in l 989.

The mid1980s presented a period of dramatic growth for remodeling, although the market slowed in late 1986 and registered a decline in 1989 for the first time since the recession of 1982. However, remodeling is expected to return to its pattern of growth in late 1990 and 1991.

This expectation is based on demographic trends and economic forecasts. Surveys indicate that household heads between the ages of 35-54 tend to spend higher percentages of their incomes on remodeling. The U.S. Census Bureau has indi-

cated that during the 1990s, much of the growth in our population will be in the 35-54 age group as the "baby boom" population ages.

Economic factors also appear to support remodeling. As house price increases moderate and mortgage rates continue in the l0o/o range, there may be more incentive for homeowners to renovate their existing homes rather than trading up with hopes of making a large profit as they did in previous years.

The residential remodeling market is usually classified into three segments. (l) About 400/o of total spending is for maintenance and repairs, such as fixing a leaking roof, and many of these jobs are do-ityourself activities. (2) Major replacements such as a new furnace, new plumbing or siding, account for approximately 200/o of the total. (3) Additions and alterations, such as a new room or big kitchen or bathroom remodeling projects, account for approximately 400/0. However, additions and alterations are usually considered discretionary as they can be easily postponed.

A number of research studies

have been conducted on remodeling. Most indicate that kitchen and bathroom remodeling are the most common addition/alteration projects. Also, remodeling expenditures tend to be higher in areas with older homes.

Story at a Glance

Remodeling to hit $109 billion in '91 ...3$54 age group spends the most... kitchen & bath pro jects arc the favorites.

Remodeling activity in the first quarter of 1990 reached a seasonallyadjusted annual rate of $ll4 billion - a record high. It is estimated that remodeling activity in 1990 will total $106 billion which is about 50/o above 1989. l99l should show continual growth with repair and remodeling increasing to about $109 billion, a slightly slower rate of growth than in 1990 primarily due to a drop-off in the additions and alterations segment resulting from a projected economic slowdown in the coming year.

Stay Liquid

(Continued.fiom page 23)

ing options available from reloads, distribution centers and direct from manufacturers. Increasing turns by decreasing inventory on hand through more frequent deliveries from suppliers will free up much needed cash.

Story at a Glance

Liquidity will be a key to economic survival inventory rnanagement can s$reeten cash flow. retailers must take a hard look at rslcosts.

Even the savviest managers often base buying decisions on just two questions: "How much does the product cost?" and "Can I get it cheaper?" Purchase price is only one element of the cost of acquiring in-

ventory. It makes sense to take a closer look at the "hidden costs" of acquiring and stocking product for resale.

Acquisition costs always get the firstand sometimes the onlv - look from purchasing agents, but possession costs can be just as expensive. Buying from the cheapest source can be an expensive proposition as well. That's especially true if it means sacrificing service. Errors, expediting delays and quality problems can seriously erode profits. Retailers who avoid the "lowest-price trap" and embrace the concept of total procurement cost can improve turn/earn ratios and boost deliverv time, customer service and ultimately, profits.

For some, definite advantages exist for buying large quantities of product directly from the mill. It's a tried-and-true method of economizing. But more often than not it requires a commitment to a huge supply, which has a negative impact on turn/earn ratios.

Buying mill-direct may make

sense, but only after the true cost implications of buying and holding the materials until they're sold are analyzed. The initial savings typically must be paid out in a variety of longterm expenses such as increased shipping costs, storage, overhead and insurance costs of warehousing, added interest payments, taxes and shrinkage. After a hard look at the numbers, a reliable wholesaler-distributor relationship often proves to be the best bet for many retailers.

In a world where keeping costs down and cash on hand is mandatory,. retailers need to ask more questions about their suppliers' services. Too often, they forget or neglect the services local suppliers can provide: buying goods in quantity, warehousing them, breaking them into economic order quantities, and delivering them just-in-time.

Improved cash flow and inventory management won't happen overnight. It takes a complete commitment and it means using every tool and resource possible,

NEWLITERATURE

Stacked Wlth Rackr

A 56-p. catalog ofcustom pallet racking. slructural steel cantilever storag,e systems and heavy duty specialty store fixtures is free lrom National Store l'ixtures. (800) 638-7941.

Permanent Shakeg

"The 50-Year Roof," a 6-p. brochure on durablc LifePine wood shakes, is available from LifePine Roofing Products. ]]ox 1386. Savannah. (ia. -1 1402.

Great ldeas

Phillips Building Supply, Laurel, Ms., is well known for its clever inhouse displays: (clockwise from right) a fireplace accessory scene, an axe display, and an endcap merchandising birdhouses and feeders, complete with a half dozen robin replicas. Here are some great ideas to help you better merchandise and display your inventory.

FOR PROMPT SERVICE

on all New Literalure stori€s write directly to the name and address shown in each item. Please mention that you saw it in Building Products Digest, Many thanks!

Material Handlers

An 8-p. telescopic material handlers catalog is lree liom ('atcrpillar, (800) ,r2.r-0550.

Heavy Sheathlng

A 28-p. booklet on the Harditexture System, a highly durable, quickly installed exterior sheathing and finishing system, is free lrom James Hardie Building Products. (800) 426-4051.

Treated Sldlng

lrull color brochures and builders clata shects on PremierPine Siding, made fiom southern yellow pine, are free from It(' Wood Products. (804) 798-9154.

SEARCH & RECRUITING FOR THE FOREST PRODUCTS INDUSTRY

BRUCE HURSEY

140'1 Hudson Ln., Suite 135 Monroe, LA 71201

(318) 322-2200^

Fee Paid Inquiries Conf idential

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, $55 ifwe set the type. Names of advertisers using a box number cannot be released. Address replies to box number shown in ad in care of Building Products Digest,4500 Campus Dr., Suite 480, 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 15th of the month. PAYMENT MUST ACCOMPANY COPY unless you have established credit with us.

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BUSINESS FOR SALE

Wholesale Building Supply Company and Manufacturer/Distributor of Specialtv Building Produits

Long established family-owned business, multi-location, Mid-Atlantic, sales $L0 million, profitable.

Write: Opportunity, 742 Princeton Mill Run, Marietta, GA 30068

MILLWORK factory: complete capabilities with ltalian/German machinery, includes 20 room house. Near Izmir on Turkish Aegean coast. Perfect for entry into Eastern Bloc markets. FAX for details: Jeanie Waggoner 011-90-(5t) 688571.

INTERESTED IN WEST COAST CEDAR & REDWOOD ITEMS?

For sidings call Doug Willis. For spa and sauna items contact Phil Heim or Doug Willis. Call Product Sales Co. (714) 9988680. Please see our ad on page 4.

FERRELL IUMBER,INC.

Lumber expert reyeals, 'How to avoid the #l

Doyou ftequetlyfnd yourselfur thewrong sideof the lumber market qryfurced that things will soon tum yanr rw!

Do you lird that the advioe of your *sorrces' tends to profit them nrore than you, or wose, profits no orre?

Tlpse problems ae the resrlt of one misake... POOR TIMING...and it can be avoided

lumber buying mistake."

The solution to this mi$ake is available to you fiom the Laynan-Martin Advisory, a forest proddsnraft€t analysis with profit making surilruries, conclusions, ad frading strategies. Ask abou the netimeJimig befier-than-risk-frce, maney-back-guarantee. For rnde information or a FREE currcnt copy of fte Layman-Martin Advisory call 800-548-1915. C-all now!

How to cut costs by improui

By Alen Drrnell Sunbelt Malerial Handling Co. Roswell, Ga.

IN TODAY'S business climate the I lumber dealer has limited control over many forces. He can do little about the economy or the growth of warehouse home centers, and the best collective efforts can only somewhat stem the tide of timber cutting restrictions.

What dealers can do, however, is eliminate waste and inefficiency on their own yards. Time spent reviewing material handling and storage procedures and the use of existing shed space is a good start.

Bulk storage sheds on many yards may be well "sited" for yard operations and trafTic flow, but not utilized well. An example is a pole shed or perimeter shed with an eave height of 16' or greater that has units of lumber or pallets of roofing spread only one or two high over most of the floor area.

More often than not in sheds where you pull stock for orders, the unit you need may be behind or under other units causing your yard people to move several units with the lift. Increased handling not only wastes man hours, but increases the likelihood of lift truck damage. Just as bad. however, is the scenario where employees (and customers) climb over broken units of lumber to pull from units in the rear of the shed. Man hours are wasted with the risk of injury added.

The efficiency of bulk and perimeter sheds can be improved by aligning cantilever or pallet racking on support column lines either across the shed or with its length. This creates lift truck aisles for unit loading and in most cases will double the usable storage capacity by utilizing the shed's vertical "cube." All tumber units or pallets are instantly accessible, making order picking and inventory control easier.

Many yards may have sheds that have outlived their usefulness or have become cumbersome to yard operations because of their location. Though it may seem painful to consider, you should think about taking down sheds like this to open up your site plan for an improved yard layout. Most lumber yards reflect their growth over the years in the

)

nACKltG lumber adds to the efliciency and appearance ol a yard. Stottlemyer & Shoemaker, Englewood, Fl. (top photo), SmithPhillios Lumber, Winston - Salem, N.C.

(center), and W. P. Ste0hens Lumber, Marietta, Ga. (lower), are good examples ol yards maximizing their space with elficient layout and storage.

lard layout

buildings and sheds added, and while the customer base and product mix may have changed dramatically, the physical layout may not have kept pace. When this happens, yard operations and customer service may suffer or increased man hours are needed to make things work.

Story at a Glance

Morc efficlent material handling and storage lessens waste, man hours and accklent risk. rede signing yard, eliminatiqg no longer useful sheds has immediate and long term benetrts with shoi payback

Cr",*hr

If your site plan will accommodate a cantilever rack supported drivethrough shed and you feel you're maximizing your other shed space as we've discussed, then this option should be considered. In my opinion this building is the most cost eflicient way to store dimensional and treated lumber for order picking.

The "footprint" of a typical single aisle shed with a24' drive aisle would be about 60' x 120'. Depending on unit size mix, this shed would store from 150 to 200 units of lumber. Ideally the site of the drive-through shed should be somewhat central on the yard with bulk sheds nearby. This facilitates loading your delivery trucks and those of your customers with little lost motion for a lift operator and yard personnel. To site a drive-through cantilever shed for operational efficiency, you may need to take down sheds of marginal usefulness that occupy prime locations on your yard.

If you haven't already faced the problem of storing long length manufactured joist and laminated beam units, you probably will soon since the "timber crisis" will accelerate the use of manufactured framing components. There are cantilever rack storage solutions that might fit well in your yard plans. A cantilever drive-through building sited with adequate turning room to load 48' units onto the outside facing arms is an excellent alternative for long

length covered storage. Ifsite restrictions make a drive-through building impossible, consider a cantilever "T" shed or single side covered cantilever adjacent to an existing building or property fience. All work equally well in handling long length manufactured framing components.

Cantilever rack systems can be engineered in both drive-through building designs and cantilever "T" sheds to suit any local building codes. Soil conditions, wind and snow loads and seismic requirements are variables that can be designed into the system to adapt it to an area.

Aside from the operating efllciency gained, there are other benefits from proper yard planning and material handling. Getting treated lumber under cover minimizes sun warpage. Sun and rain damage to other dimensional lumber is reduced. Having a covered drive aisle in which to load lumber during bad weather is a plus, as is the ability to stage trucks for morning deliveries the afternoon before.

There are accelerated depreciation benefits with a rack supported

building versus a pole shedseven year schedule instead of 30 years. An intangible benefit is the impression a well planned, well organized yard makes on customers. After we recently erected a cantilever supported building, the yard manager told me one contractor customer remarked, "l would drive l0 miles past your competitor to get here, because you get me loaded and back to my job site quicker." This summarizes what proper yard planning and customer service is all about.

Take time now to review your existing yard plans and storage options. Whether you add cantilever or pallet racking to existing sheds to solve immediate problems, or consider options such as cantilever supported drive-through sheds or cantilever "T" sheds, you will find both immediate and long term benefits with.the payback a lot sooner than you lmaglne.

Obttuarles

Rlchard W. Buchgnrn Jr.. 63. founder and president of Buchanan Lumber Co., Montgomery, Al., died Oct. 24, 1990, in Montgomery after a brief illness.

A native of Kentucky, Mr. Buchanan joined Miller Lumber Co,, Selma. Al.. in the 1940s. In 1960, he founded Buchanan Lumber with his father and two brothers.

An active member of the National Forest Products Association board of governorsi he also served as chairman of NFPA and president of the National Lumber Exporters Association, Southern Hardwood Lumber Manufacturers Association and Alabama Forestry Association.

Mr. Buchanan is survived by his widow, Mary, two sons, one daughter and nine grandchildren.

Englneered Wood Ouallty Mark

The APA-EWS (American Plywood Association-Engineered Wood Systems) trademark will be applied to engineered wood products and systems manufactured by members of the American Wood Systems (AWS) as of Jan. I

Products meeting the specifications of ANSI Al90.l will carry the new trademark. These include glued laminated beams and other engineered wood products. AWS is a related corporation of the APA.

APA-EWS members at present include Bohemia Inc., Boise Cascade Corp., Rosboro Lumber Co. and Weyerhaeuser Co.

Romodelhg Receeslon-Prwt?

Though residential remodeling is often considered recession-proof since hard times tend to keep homeowners in their old homes, remodeling outlays were down last year despite a growing economy.

National Gypsum Bankruptcy

Aancor Holdings, Inc. and its subsidiary, National Gypsum Co., Dallas, Tx., filed for Chapter I I bankruptcy protection at the end of October.

The Austin Co., a National Gyp-

Charles Rry "Chuck" Lowery ll. 23. salesman at 84 Lumber Co., Lowell. N.C., died of heart failure Oct. 20, 1990. in Gastonia, N.C.

A six-year 84 Lumber employee, Mr. Lowery is survived by his parents and one sister.

Paul Prevost Bellenger Sr., cofounder of Paul P. Bellenger Lumber Co., Jackson, Ms., died of heart failure Oct. 24, 1990, in Jackson. He was 93.

A lifelong native of Jackson, Mr. Bellenger started in the lumber industry with Finkbine Lumber Co., later becoming president of Trenton Lumber Co. and serving as president of the Southern Pine Association.

He and his son later formed Bellenger Lumber. He retired in 1982 at age 85.

Mr. Bellenger is survived by his widow, Virginia, one son, one granddaughter, and two g,reat-grandchildren.

Tlme For "Wlnte/'

Endcepo

This month is ideal for "(ietting Ready l:or Winter" endcaps and advertisements. Customers are thinking about storm windows and doors, insulation and roof repair as well as stove and fireplace supplies. Gardeners are into bulbs. winter planting and mulching.

llenson lluilding Materials, Marion, N.C., is selling storm doors, storm windows, weather stripping, shingles and paint. Jeff llardin, manager, explains that customers who have put off reroofing are suddenly deciding to get their roofs in shape for winter. Painting is popular to protect the house from the winter weather.

lluilders Supply of McDowell in Marion rents an insulation machine so that customers can buy insulation and put it in themselves. They're selling lots of the blow-in product, according to John Cook, manager of the Marion store.

sum installation subsidiary, was excluded. The company will continue to provide customers "with the same quality products and services they have come to expect throughout the company's 65 year history," said Peter C. Browning, newly elected president and ceo. Asbestos law suit worries were believed behind the filing.

In the first nine months of 1990, the company reported losses of $53.2 million, up from 1989 losses of $27.6 million in the same period.

Depots Add Design Center

Pleased with the results of a trial decorating center in its Nashville, Tn., store, Home Depot is rolling out the concept in several dozen additional stores.

Interior designers are being hired to staff the centers. They will offer customers assistance in coordinating wallpaper and paint with tile and other decorative products such as flooring and blinds, according to Lonnie Fogel at corporate headquarters in Atlanta, Ga.

Design centers, which are publicized through Home Depot catalogs and advertising, are already open in some Atlanta, and Florida stores. Stores in the west and northeast will have the service shortly.

West Marion Home and Garden Supply is selling supplies for winterizing pools, plumbing supplies to keep pipes from freezing, stove pipe and polish as people start pre-winter chores.

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Bean Lumber Co.. Curt ........3

Berdex lnternational.. ......., 18

Bowie Sims Prange, .,.........30

Dataline Cover lV

Elder l,umber Co., Roy O...............31

Elder Wood Preserving Co. .............17

Equipment Remarketing .......32

Georgia-PacificCorp.... ...Cover I

Heritage Windows ......5

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Plus Alaska and Hawaii

lf you sell into the West, orany part of it, we can hel p you get across your message.

The Merchant Magazine covers all 13 Western states. Founded in 1922, it has been the listened to voice of the industry in the West for more than six decades. Our longevity also proves we can get an advertiser's message to the important trade factors better than any other medium. And at the right price.

Our paid circulation is nearly 5,000; a remarkable vote of confidence as these industry influentials also receive at least four or five free magazines monthly. The Merchant's paid circulation tells you

clearly which magazine Westerners read.

The Merchant's unique blend of news, merchandising and marketing information, salted with personal news and notes and seasoned to the Westemers' taste reaches an audience of home centers, home improvement centers and lumber dealers as well as the wholesalers, distributors and jobbers that back them up. The Merchant, incidentally, is the sister publication of Building Products Digest.

You can count on reaching the market in the West through The Merchant Magazine. Call today, you'll be glad you did.