Another record breaker

HE Lumber Association of Southem Califomia has broken a number of records over tJre years and at their recent Management Conference in Palm Springs they did it again, anotier all-time record in attendance. As they say, when youte got a good thing, word gets around.

Despite a multitude of distractions in the desert resort, the business meetings were well attended, with those present paying close attention to an excellent program on aset management. Experts from the lumber industry as well as the financial community spoke to the group.

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In the annual election of officers, Don Derbes of Rolando Lumber, Riverside, was chosen president; Bill Cowling, Jr., Dixieline Lumber, San Diego, lst v.p.i Ralph Cardwell, Cardwell Forest Products, Fullerton, 2nd v.p.; Paul Orban, Jr., Orban Lumber, treasurer: and Gordon Beach, Rygel Lumber, secretary.

In an opening statement to the convention, outgoing president Chuck Jenkins noted the increase in the Second Growth group, which is composed of those in LASC that are under 35. From a founding membership of 20 this March, the organization within an organization has quadrupled in size. Jenkins also noted the greater overall member involvement in all association activities, its good financial health and outlined tentative plans for more wood promotion in 1977.

Opening speaker Ed Barker, a v.p. of Califomia Federal Savings & Loan, backgrounded his prediction for the new year and the balance of our century with a fast-paced sunrey of the American economy and how social developments have affected economic patterns.

Concluding that as the private sector grows narrower yearly, capital becomes scarcer and state and federal intervention in housing increases, the possibility presents itself that individual ownership of single family homes will be extinct by the year 2000. He sees organizations alone being financially able to own homes, purchased by them as investments, and rented to families under strict government guidelines. An additional result of this will be the disappearance of the private mortgage instrument.

On the nearerterm, the rapid talking economist sees young couples movhg back to the cities, encouraged by HLJD financing programs, with the low income eamer moving to the suburbs, where the ghettos of the future will appear.

For this year, he anticipates no action by hesident Jimmy Carter until the second half to stimulate housing, when he feels the mortgage rate will be 9L%9rt%. While repair and remodeling busines will continue to grow, Barker thinks the single family home segment of the market may be in the process of being overbuilt in Southern California.

That afternoon, a four man panel discussion on management of people and money began with Marc Myers describing the asset value of employees and ways to maximize their on the job performance and contribution to their employers. Bob Sievers counseled that firms must prepare for the inevitable employee vacancies bY develoPing sources for new emPloYees when the time comes. He noted that the best "people bank" was your own organi' zation.

Pete Ganahl discussed various hard assets, retum on investment factors and their projections of the role their ESOT plan will plaY in cash manage' ment and employee motivation. Kingston McKee described money manage' ment as one of their most imPortant duties and noted the Profit erosion caused by inflation. More retum on net worth is the best way to cope with inflation, he said.

Next moming's panel on how to acquire operating capital was begun by retailer George Barr, as many Present recovered at varying Paces from, how strall we say it, dietary indiscretions committed at the previous evening's very well attended dinner danceCapital sources noted were venture capital companies, banks, Personal savings, accounts receivable, friends and family. Barr cautioned, as did other panel members, on the imPortance of knowing your lender.

Acquiring capital from a distribution yard's viewpoint was next described by Jim Frodsham who mentioned additional sources such as intemational financing, business credit lenders, and insurance companies. There are many ways to go, he said, with the correct one varying from business to business.

Noting the declining role of float in providing operating capital, panelist Clint Rygel stressed the importance of return on investment, as a prolitable company can much more easily attract the capital it needs. In borrowing from a bank, Rygel advised picking a strong branch of a strong bank, getting to know your banker, and providing him with complete facts.

Final panelist Bill Cowling noted the additional capital source of refinancing paid for rolling stock and buildings. He warned not to 8et too friendly with your banker and to carefully pick the bank's branch "so that you will be dealing with people with whom you can relate." Additionally, he suggested use of a weekly, not montNy, ageing street for better money management.

The concluding panel was comprised of a quartet of bankers from Bank of America. Jim Tecca, v.p. and manager of the Newport Center branch, counseled against refinancing a long term asset to solve a short term problem. receivable financing was covered by Wally Nielsen, who noted that the old stigma it had in the past of only being used by weak companies was no longer accurate.,

Payroll and management information systerhs were two of the banking services described by Steve Castleton. The importance of fully informing

Story at a Glance

LASC sets another mark for record attendance at their 26th annual Management Conference . . . how best to manage business assets, both money and people, key meetings your banker so loans can be specifically tailored to a firm's individual needs was stressed by Castleton.

Don Derbes elected new president.

Frank Keane, v.p. of the forest products div. of B of A's San Francisco headquarters, described the world " --- r_'--^' export of forest products will eventually impact the U.S. market. He advised maintaining strong supplier relationships so "you'll have something to sell when supply gets short." tioning systems when not used or not fully required such as during sleeping hours.

Next on the program was a collection of hints for a better golf game by Eddie Merrins, pro at the Bel-Air Country Club.

At the concluding luncheon the new officers were recognized and a special presentation to retiring Miles Davidson of National Building Centers was made by his associate Tom Supple, whose sparkling sense of humor was much in evidence in presenting the award.

Next year's conference is again slated for the Spa Hotel during November, as LASC moves successfully into its second quarter century of serving the industry.

HUM0B0US, but heartfelt tribute to Miles Davidson, center in (1) along with new president Don Derbes and Tom Supple, about to present plaqueto Miles.(2) Dant & Russell president Seth Potter and Frank Ouattrocchi of American Forest Products.

Johnson, Sterling Wolfe. (4) Ted Pollard, Arnold Nutter. (5) Jim Frodsham, Eill Cowling and Wayne Gardner, exec. v.p. of LASC. (6) Bill Connor, Ken Thompson, Frank Moloney. (7) Mike Nicholson, Jim Nelson, Sr. and Jr. {8) Marc Myers, Paul 0rban, Jr., Ed Fountain. (9) Andy and John Ganahl and GrantShaw. (10) Gordon Beach, Larry 0uinlan, Jim Newquist. (11) Mike Mauck, Pat Fazio, John Carroll. {12) Lloyd and Beth 0lson, Pete Speek. (13) Wally Swanson, Gordon Beach, Gil Langley. (14) Bud Spencer, current LMA president, Harry Mendenhall, LMA exec. v.p., Ray Cusato. (15) Randy Philips (are you ready for that beard?), Ralph Froiland, Dennis Richardson. (16) Frank Sween, TrevorPage, Tom Supple, in background: Ted Shafer, Frank Higgins in white shirt. (17) Ernie Hixson, Mike and Dick Learned. (18) Clint Bygel, Jack Secoy, George Barr. (19) Bob Beed, Phil Butterfield. (20) Wayne Mullin, Harry 0uentmeyer, John Mullin.

MAXIMUM wood use is planned for this energy conservation home now under construction in San Jose, Ca. Solar heating is planned despite its inner city location.

A low maintenance lawn will be installed and will incorporate an underground trickle water system that will be activated by moisture sensors.