Management conference

EFLECTING an upbeat building year, a record number of retailers and wholesalers were present at the recent Management Conference of the Lumber Association of Southern California. More than 300 were registered for the 27th annual, held again this year at the Spa Hotel, Palm Springs.

In the president's report bY Don Derbes at the opening of the four day gathering, he noted the tremendous increase in the Second Growth, the under-35 organization within LASC. The young people's group is now the largest of its kind in the United States among lumber associations.

More new members, plus a dues increase, Derbes said, will enable LASC to step up activities in a number of areas, with wood promotion slated to get increased attention.

The convention theme of "Get Involved" was stressed by first speaker Troy Bussey, a motivator who urged an activist role upon his listeners, saying that the individual must act to make things happen.

An afternoon panel discussion on "Labor Relations - Can They Be

Story at a Glance

Record registration .. . LASC's youth group, the Second Growth, now largest of any U.S. association . labor problems, profit margins and safety theme panel discussions Wm. S. Cowling new pres.

Better?" heard first from labor specialist Dave Snow, v.p. of Hancock Laboratories, who said most employers deserve what they get because they don't actively prepare and fight for their side. He said unions thrive on weakness, intimidation and threats.

The direct, plain-spoken Snow gave a number of suggestions for dealing with the onset of labor negotiations, pointing out that there is no law that an employer ever has to settle. "As long as there are good faith negotiations, there's no law anywhere that says you must ever agree."

Asa Jennings, v.p., National Building Centers, noted that the negotiating of a new contract linally all reduces to econornics, what you give and what you get.

He suggested that a llrm should initially position itsell' Ibr the negotiations, because once thcy begin it is too late too change.

He characterized a round of labor bargaining as "a fluid environnient" and said tlie negotiator nrust be prepared to function within it.

Williarn Cowling. Jr.. pres.. Dixieline Lurnber, related actual instances where they had been able to outbluff the unions. He noted that it can be a very tough period for a llrrrr if the unions pull all the tricks possible.

He said lthat intinridation is one ol' most union's standard operating tactics and that an enrployer slrt>uld be prepared for most anything. threats, vandalisnr and the rest. Cowling pointed out that not al1 unions operated this way and that each case has to be dealt with individually.

A second panel discussion attacked thc question of' operating profitably in 1978 with 1973 nrargins. Lead off speaker Phil Butterlleld. lnternational Forest Products, observed that supply, denrand, operating costs and conlpetition all went into tlie tinal price asked. He noted that in Soutl'rern Califoniia, the world's largest iunlber merkcl. tltat corrtpctilion wls ln ilttportant factor in establishing a market price.

Trevor Page, of Burnaby Luntber, contrasted factors involved in calculating nrargins on either a peroentage of sales or on a cost per thousand board tbot of lurtrber. He felt that there is no way a firm can rely on either as a quick answer. Costs rnust be analyzed over a long period of time to ensure that the rrargins added to the sales price will, in fact, covcr present and future operating costs.

All-Coast Forest Products's prcsident Daryl Bond reviewed lumber pricc moves irr the live years since tc)73. He noted that the All-Coast operation. which brings in huge volunres of lunrber through their dock inventory at Los Angeles Harbor', realizes that for them rnargin and volume alone rnean nothing, but together, "they're everything." He stressed thc irnportance of turning both accounts receivable and inventory quickly to contribute to a firnt's profit.

STRICTLY SPOBTSHIRT weather in Palm Springs, Ca. (1) Daryl Bond, Bob Ransom. (2) Cyndi and Mike Tracy. (3) Bob Roedecker, Harry Selling. (4) John Weston, Al Bufkin, Jim Pottratz. (5) Bill Clow, Gene Richardson, Murray Marsh, Pete Speek. (6) George Cudworth, Michele Alexander, Helen Cudworth, Larrv 0uinlin, Tom Supple. (7) Rick Kellso, down from Medford, 0r., for the convention; Dennis Richardson, Jim Frodsham. (8) Arnie Doolittle, Kevin Hov, Pete Ganahl. (9) John and Wayne lVlullin, Clint Rygel, Harry 0uentmeyer.

Retailer Frank Purcell, Builders

Supply of Palnr Springs, dwelt on the cost increases that his firm had encountered in operating their three full selvice yards. "ln the last five years, our average wage has risen approxinrately 4lX," he observed.

He related that turnover has hiked (Please turn to page 3 2 )