South to fill void

By John E. Stevens Senior Vice President/C.O.O. Dixie Plywood Co.

lOneCeSTlNG, ar best, is a risky

I business. However. at this time of the year, we all must do our best job of forecasting to develop an operating plan. Each year as changes occur in our industry and in the economy there are additional factors to be considered.

This year, the environmental movement has created a new item for

As a result, we must consider the possibility of shortages occurring in the wood products we receive from the Pacific Northwest. We must assess the impact of these shortages on the available supply of southem wood products. Because of the harvesting curtailments in the Northwest, the South almost certainly will increase the volume of wood products sold in previous years.

Story at a Glance

Shortages in Northwest will increase demand for southern wood products...higher prices probable...lower mortgage rates will stimulate building, probably in late 1992.

part of the building products landscape. Can your supplier be a part of the new technology?

' Retailers are lookins at manufacturers and suppliers t5 help sell products better and faster. In-store merchandising programs, displays and product training are providing retailers with differential advantages. What can your supplier offer?

' More and more suppliers are being called in to develop and manage complete programs for specific product categories.

' Just-in-time delivery programs help control inventory costs for retailers. Can your supplier deliver when you need it and in the quantities you need?

Story at a Glance

Gradual recovery ...perhaps 1.2 million housing starts ...more remodeling...supplier will be a key to retailer success.

While you can't control the economy, you can control the way you do business. And building closer, longlasting partnerships with a few top suppliers can help win the race in this slow but steady recovery and beyond.

The increased demand for southern products will cause market dislocations due to expected higher prices being charged for some products in some areas of the South. The ramifications of these environmental pressures represent just a few of the factors we must consider.

Other concerns to be addressed: housing starts both national and regional, the remodeling market, nonresidential business activity, regional business conditions and the general economy. There have been many forecasts made for 1992. Most are flat to negative for our industry and the economy overall.

Our crystal ball shows pretty much the same story. The only bright light is lower interest rates with mortgage rates the lowest since 1986. At some point, we think these low rates will stimulate the building of more new single family homes, and eventually lead the country out of the recession. This could occur in 1992. However,

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