A dramatic resource utilization hit

What started out as one man's idea for resource utilization now appears headed for recognition as one of the West's best do-it-yourself products for r976.

So say literdly hundreds of horne center improvement dealers and thousands of do-it-yourselfers throughout the West who describe Pope & Talbot's new Woodstrip decorator veneer as the hottest consumer product to come along since prefinished paneling.

What's all the excitement about? Basically, it centers around a package of rough textured Western red cedar veneer in one, two, three and four-foot lengths. Only 3-7116" wide and just l/10" thick, a single package weighs less than 7 lbs. (ideal for the housewife to toss into the back of the family car) and contains 33 sq. ft. This represents slightly more than the standard 4x8foot panel. Retail price ranges from $14.95 $17.95, depending on markets.

Story at a Glance

What started as an excercise in resource utilization became one of the West's hottest d-i-y products of 1976 originally produced in Western red cedar only, Woodstrip is now being test marketed in redwood.

But the other big story lies with the resource utilization aspect of Woodstrip. At Kalama, Wa., Pope & Talbot produces a plywood panel called "Ruff-Cut 44," a popular architectural 4x8 to 4x10 panel that uses long, random length 3:7 116" wide, end and edge-glued Western red cedar veneers pressed together in a plywood hot press.

In selecting only longer length veneers for the Ruff{ut 44 panels, a large number of "shorts" or lengths ranging from one to four feet are left unused. It was with these "shorts" that John Postman, Pope & Talbot's plywood sales and marketing manager, put his efforts into developing the Woodstrip concept. Postman's idea has brought full utilization for the mill's Westem red cedar production.

Beyond the simple fact that Woodstrip is rotary peeled veneer, is its "do your own thing" decorator appeal.

"Ihere's virtuallv no limit to the end uses of Woodstrio versus the costly, unwieldly nature of plywood panels," says Postman.

"It can go vertical, horizontal, diagonal or herringbone on almost any type surface," he adds.

"Imagination is the only limitation," Postman continues, "and from early case history reports, do-it-yourself imagination is running wild."

"We have photographs ofWoodstrip being used witlr things like mirror tile and brick in bathrooms, plus for all types of wall design patterns such as sunbursts, cubes and even pyramids," he said.

Woodstrip was first introduced to the consumer marketolace in Februarv of 1976 under test market conditions with one of the West's major rnass merchandisers, Fred Meyer.

"Wg immediately saw the do-ityourself potential of Woodstrip, and were very happy to have the test market opportunity," reports Don Tripp, building materials marketing manager for Fred Meyer's 18 home improvement centers in Oregon and Washington. "The creative appeal combined with the economy and ease of handling Cedar Woodstrip were just the right touches for the market," Tripp adds.

Results of a four week live demonstration, tv and newspaper blitz introducing Woodstrip to PortlandVancouver area consumers had somewhat of a stunning effect on Postman and his Pope & Talbot marketing associates.

Fred Meyer's initial test market inventory of roughly 3p00 packages distributed among eight home improvement centers in the Portland-Vancouver area was blought up in less than four weeks, plus a backup order ofanother 3,000 packages moved throu$h cash register stands in another quick four week period.

"This kind of consumer activity was totally unexpected, and it didn't take any of us very long to realize we had a tiger by the tail," Postman said.

It was no paper tiger. Look at these early sales figures.

In less than nine months Woodstrip sales have topped the 100,000 package level with an order file now in excess of 75p00 packages. In sales dollars, the company admits that Woodstrip sales to date are close to the $l million mark, and increasing rapidly asmarketing and production continue to improve.

The details behind WoodstriP Production represent another interesting chapter in the development of this unusual decorating product. At the outset, Rirbe Goldberg would have shuddered iat the Woodstrip production system.

"No o$e was willing to make a major capital commitment until Woodstrip could earn its keep," Postman explained.

As a rgsult, the primary product was manufactured in Kalama, Washington, trucked to Portland for labeling and wrappd, then trucked right back to Kalama;for final shipment.

"If we got 300 packages a day from this arrangement, we felt lucky," Postman said.

Then two rapid fire developments brought Woodstrip to its successful place in the marketplace-Sunset magazine and, not surprisingly, the wall-towall humanity of the Los Angeles basin.

In March, the company broke a full page, four color ad in the Northwest edition of San set magazine,introducing Woodstrip and giving readers a whereto-buy listing.

The resoonse was immediate. as some dealeis reported receiving daily as many as 30 to 35 phone calls and/or store visits in just the first week after Sunset hit the streets.

In April, Sunset's home improvement editors helped the cause by doing their own editorial piece onWoodstrip. Again, the response was immediate. Postman's office logged well over (Please turn to page 23)

AMAZING versatility of Woodstrip, Pope & Talbot's hot new consumer d-i-y product, is evident in this bath remodeling. lt can be used vertically; horizontally, diagonally or in herringbone on almost any type surface; wall designs posible are limitless.

MUtLING

Problems & Solutions

I OeNf If VING problems and pref senting possible solutions featured the roundtable discussions at the recent North American Wholesale Lumber Association regional meeting in Los Angeles. The meeting was chaired by Phil Butterfield of International Forest Products.

The problem of delays on railroad shipments was summarized to include money tied up in lumber and rail costs; customer delay in receiving orders; delay in r.r. billing; larger cars on incentive causing some problems; and frequent rate increases. Possible solutions included a united effort to confront the carriers with these problems. Should no help be forthcoming, it was suggested that legislative action was possible to induce the rai-lroads to absorb some carrying costs.

Another transportation problem was that of gypo truckers versus legal carriers. Among these: no uniformitv of rates on interstate trucking; speciil freight rates on interstate; reliabilitv of truckers; availability and. competifiveness; legality of using gypo truckers, PUC audit exposure. Tentative solutions: remove all ICC and PUC interference, let each trucker set his own

Story at a Glance

Roundtable discussions identify various industry problems and propose possible solutions to them included are delays in railroad shipments, gypo versus legal truckers and direct shipment claims and disputes.

rates; own your own trucks; get a P U C approved lease contract with a reliable, competitive trucker; and develop a reliable freight rate information center to provide fast, accurate information.

Claims and disputes problems (confined to direct shipments) were noted to include remanufactured lumber misunderstandings between wholesaler and customer; better defined redwood grades; damage in transit claims against railroads; late shipments; and off grade/excessive moisture. Solutions: settle as quickly as possible; better communication on orders (be specific and clear); justify your complaint before reinspection; and stop buying from mills that cause problems.

NAWLA exec. v.p. Jack Mulrooney also spoke, giving the group's views on the industry picture for 1977 and telling of their plans to increase wood's over all markets.

North Pacific Lumber Co., one of the nation's largest lumber wholesalers, last month lost an important legalbattle. According to llillamette Week, Dec. t4, 1976 "North Pacific Lumber Company, whose ceatral offices are located in Southeart Portland, i "has had its business disrupted and its reputation seriously damaged by a lengthy, expensive court trial the company lost.

) "of its own motion has refunded money to customers and mills on questionable lumber transactions it admits having made during the past six years, tices [werel hemlock. . . Gtobe Internotionsl has moved into a new 75,000 sq. ft. Hq. in Redondo Beach, Ca. Davidson Plywood & Lumber is now So. Ca. distributor for Jiffi-Fit Products' line CIf bookcases, cabinets, stands, storage units, etc..

It is not known whether North Pacific, which bills itself as "The Most Trusted Name in Forest Products," will appeal the verdict. . . the trial took 6 weeks, involved 33 witnesses and 242 separate exhibits.

AlbCoast Forest Products, Whittier, Ca., recently brought in via twin barge from Canada the largest single shipment of lumber ever into So. Ca.,: 8.5 million b.f., mostly hemlock; we'll have an illustratedstory in a forthcoming issue.

.

"moy see its working ownership change in a messy legal struggle for control between the company's two largest stockholders; and

. "is sure to take added lumps from a series of deceptive trade practices lawsuits brought again$t it by former North Pacific lumber traders who are *eeking millions of dollars in punitive damages. . ."

Multnomah County Circuit Court Judge John C. Beatty Jr.'s written opinion said in part, "Company policy. . . casts a Byzantine veil of secrecy over every aspect of corporate activity". "The making of profit on claims was perhaps the most serious practice charged against the plaintiff. . the practice was deliberate, occurred regularly, and was encouraged by the department manager."

Judge Beatty also wrote, "It was an employment milieu certain to inhibit expression of concern, complaint or protest - & system designed to insure

In another legal case, a Federal Trade Comm ission administrative law judge ruled it illegal for companies to charge a rail freight rate from Portland for plywood when the product comes from mills closer to the buyer by truck. Those named, G-P, Boise Cascade, Champion Internotional, lileyerhaeuser and lUillamette Industries, plan appeals. .

Permits for housing starts issued in Nov. '76 (latest available figs.) were at the highest rate in nearly 4 years, indicating the housing recovery is alive & well, despite a Nov. decline in starts of 6% to a seasonally adjusted annual rate of 1,705.000...

The prime lending rate (for banks' best borrowers) is now 6Vo. . . s&ls had a record influx of cash in their most recent reporting period (l}l76)... home mortgage rates declined in Nov. for the 2nd mo. in a row; all favorable signals for continued strength in home building, lumber and building materials' best market.

Trinity Forest Pladucts is a new wholesale firm in Novato, Ca., recently begun byKarl W. Drexel and James L. Peterson, TFP sells DF, redwood, pine, cedar, plywood & West Coast

National Forest Products Assn., meeting recently in Phoenix. elected Thomas M. Orth, pres.; Eliot H. Jenkins, chairman of the board; Gilbert L. Oswald, lst v.p.; Joseph A. Cook, sec.; and Ralph D. Hodges, Jr., exec. v.p.

Lumbermen's Building Cen t er, Palm Springs, Ca., is set for an early ground breaking, a joint venture by Bob Slettedahl of Lumbermen's of Washington and A.H. "Ike" Parker, Parker Lumber, Bremerton. Wa. it's on 3% acres; the main bldg. will be 10,400 sq. ft., selling primarily d-i-y, small contractors and, per* haps later, shell housing. .

The California Redwood Assn. has a new Design-a-Deck kit for dealers to increase sales of deck modules, a big Spring push is planned; watch for details in forthcorning issues. ..Minton's Lumber & Supply, Mountain View, Ca., plans a 3rd No. Ca. stote, site to be announced.

Lskeside Lumber, south of Gardnerville, Nv., has been sold for an undisclosed amount to Frank Pendola of Sierra Timber Products. .. Plywood Camponents, Albany, Or., is constructing a permanent new office. . G-P is bldg. a 40,000 sq. ft. distribution warehouse in Sparks, Nv., Rick Hermanson, mgr.

PONDEROSA

SUGAR

JANUARY

Shasta-Cascade Hoo-Hoo Club - Jan. 14, Concat, (place to be announced).

Lumber Merchants Association - Jan. 14-15, annual management seminar, Asilomar, Ca.

National Eousewares Manufacturers Assn.Jan. l7-2O, National Housewares Exposition, McCormick Place, Chicago.

National Association of Wholesaler-Distributors - Jan. 19-21 annual meeting, Las Vegas.

Los Angeles Hoo-Hoo Club - Jan. 28, Transportation Nite (golf & dinner), California Country Club, Whittier, Ca. Orange County Hoo-Hoo Club members invited.

FEBRUARY

National Home Improvement Council - Feb.4-6,6th annual convention, Fairmont Hotel, San Francisco.

West Coast Lumber Inspection Bureau - Feb. 5, general membership meeting. Place to be announced.

National Woodwork Manufacturers Assn.Feb. 5'9, 50th annual meeting, Royal Lahaina Hotel, Maui, Hawaii.

Shasta-Cascade Hoo-Hoo Club - Feb. 12. Ladies Nite. (place to be announced).

Los Angeles Hoo-Hoo ClubFeb. 19, Valentine Dance, Montebello Country Club, Montebello, Ca.

Mountain States Lumber Dealers Assn. - Feb.22-24,retarl management seminar, Denver.

Hoo-Hoo-Ette Club f,12Feb. 25, Lumber Nite, Airporter Inn Hotel. Irvine Q3.

Western States Hardware Show - Feb. 27-March l. Brooks Hall, Civic Center, San Francisco.

Truly a "chip off the old block", the new National Division of J. E. Higgins Lumber Company is readY - willing and able to handle Your toughest requirement. From pencil stockto ship sparsHardwood of any sPecies to Softwoods andRedwood. .you name it, if it's grown, we have it . . Imported and Domestic. The Higgins "baby" ,n ca,a handle it . . After all, "little shavers" with parents 9Syears old do know a pitchpocket from a knot hole!

Give us a call!

Dramatic Hit

(Continued fron page lS ) 1,500 letten of inquiry from readers wanting to know where to buy Woodstrip.

At about the same time, Woodstrip was being voted as one ofthe ten best new products of 1976 by the National Home Center Show people in Chicago, the first show of its type drawing some 35,000 home improvement store dealers nationwide.

This show led to the joining forces of Pope & Talbot and Davidson Plywood and Lumber Co. in Los Angeles as the prelude to introducing Woodstrip to the mass market of southern California.

Postman said he will never forset Davidson's first order, which came -by telephone in April shortly following the Home Center Show. "We had covered all the preliminaries, and I had related the successes of our 3.000 and 4,000 package promotion programs in the Northwest with Deople like Fred Meyer. So I asked trim wtrat kind of quantity would Davidson be talking about initially."

"We'll take one carload now. and another as soon as you can put it together," came the order from Bob Howard, Davidson's vice president and general manager.

Postman took a deep breath, did some quick arithmetic, and exclaimed, '"That's 14,000 packages-it will take us 21h months just to produce that much!"

At that point, Postman recogrized that Pope & Talbot did, in fact, have a tiger by the tail. Immediate steps were taken to greatly increase production at Kalama.

Today, thanks to several major capital investments in new equipment the Kalama mill is efficiently producing well over 1,700 packages daily.

Davidson Plywood got their 14,000 packages, plus many thousands more as southern Califomia proves to be the market leader for Woodstrip. The company's southern California sales representative, Ritter Sales Co., has been successful in getting Woodstrip into well over 100 retail outlets throueh the Los Angeles basin. Another b-ig "mover" for Woodstrip, particularly in the Pacific Northwest, is the Palmer G. Lewis Co. based in Auburn, Wa. PGL has close to 200 home improvement centers and lumber vards in Oregon, Washington and Alaslia on the Woodstrip band wagon.

Also on the horizon are additional species besides Westem red cedar.

"Our objective initially is to establish strong regional markets with cedar and redwood. then look to a national market ivith another specie," Postman admits.

"Limited redwood and cedar raw material availability will hold these two species to regional markets, while other species we are evaluating are in ample supply to go national," he explained.

While Woodstrip's success to date is described by Davidson's Howard as "spectacular," he admits competition will likely become a factor sooner or later.

"Any potential competition will have a long way to go before they catch up with Woodstrip," he adds.

New Rolando Sales Office

Rolando Lumber Co., San Francisco, has opened a new sales office in Riverside, Ca., headed by Don Derbes, formerly with Inland Lumber Co. Working with Derbes are Bob Turner in sales and Audrey Lackey, office manager.

The lumber brokerage will handle remanufacturing and reloading business through Rolando's Kinton Division in Cloverdale. It will also represent Coos City Manufacturing, another Rolando division, located in North Bend, Or.

Wbma Annual

(Continued from page 13) the dealers present to concentrate more of their efforts on selling the consumer. She said today's retailer must be more expert in selling lumber and building materials and in balancing the business between consumer and builder/contractor customers.

Nebraska lumberman George Russell, current president of the NLBMDA, sees smooth sailing ahead of the industry for the next l8 months.

The new Congress is more liberal, Russell said, and prophesied it would produce more environmental legislation, more consumer oriented laws that could cost business. He sees the Common Situs picketing issue making a comeback and the possibility of wage and price controls.

Other program features included the well-attended "Quick Pitch Selling Talksl Grant Gard's enthusiastic presentation "Don't Talk About ItDo Itl" an amusing inspirational presentation by "Mick" Delaney: and a business improvement roundtable manned by Roger Conrad, W. J. Conrad Lumber, Coos Bay, Or.: James