Slow but steady

By George A. MacConnell Senior Vice President, Distribution and Specialty Operations Georgia-Pacifi c Corporation

T HE BEST phrase to describe the I building products industry outlook for 1992 may be "slow but steady," particularly after the roller coaster ride f weronirrn ivvi

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-oncommoolnr and renewed remodeling activity. We're still on that slow, steady climb back, and we're not anticipatin! any significant drops in the near future. With an expected gradual recovery in housing starts predicted for 1992,prhaps to a level of 1.2 million, retailers can see some relief in sieht. Consumer confidence to undertike major remodeling activities is up as well. With today's "buyer's market" in real estate, homeowners need to make their aging homes attractive to increasingly finicky house shoppers. This bodes well for both d-i-y and remodeler-oriented yards and home centers.

How can a retailer succeed in the slow, steady climb in '92? By getting suppliers directly involved in his business as a key partner. Retailers should challenge their best suppliers to help solve their business problemsto come up with ideas that will increase sales and profits. This, however, cannot be a one-way street. Retailers and their employees must be willing to work hard and be open with suppliers. They can'tjust put key vendors under the microscope, but must scrutinize their sense of partnership with each other.

Here are some partnership keystones to work on in'92:

' Is communication a two-way street? Are needs and demands addressed? Are you familiar with the services your supplier offers?

'Does your supplier have control over resources from which products are made? Is his supply dependable and timely?

. Look at how electronic technology is changing the way we do business. EDI and UPC are fast becomins