How to increase productivity

"Business managers, will play the key role in reversing the declining productivity of U.S. industry," Donald P. Brennan, executive v.p. of International Paper Co. has forecast.

"Historically, productivity has been improved in four ways: capital investment; economies of scale, technology, including management practices; and quality of the work force. Three of four, are basically management responsibilities," Brennen said.

"While labor and government are also important contributors, competent management is clearly the most important factor in achieving improved productivity," he added.

"Too many people think productivity means only making workers produce more, or only cutting back on unnecessary government regulation. Productivity depends most heavily on the impact of capital investment and the availability of capital to an enterpriseand that means the decisions of management. decisively and expeditiously. Its judgment has to be good, and it has to be on time. That is what management is paid to do."

"If the enterprise is to achieve high productivity and acceptable profitability, capital investment must be made in the right business and must have the right management organization," Brennan said. "It must be aimed at the right markets, be built in the right place, come on stream at the right time, and be equipped with the right technology, manufacturing processes, and work rules. Getting all of these factors right is up to management."

He added, that the fact investment decisions are getting more difficult to make doesn't excuse management from making them in a timely fashion.

Brennan said management also must "make certain that work practices conform to new economic realities. "

"Industry must make the urgent point to all employees and government policymakers that the fate of existing plants and the investments needed for new plants - and all of the jobs involvedrest on an ability to create cost-effective facilities," Brennan said.

Brennan called on the federal government to focus on the quality and cost effectiveness of regulation.

"This country would make tremendous progress, in fact, if government adopted a palsoriented approach to regulationtelling industry what it wants to accomplish, and then permitting industry to select cost-effective means to achieve those goals," Brennan said.

Brennan identified several areas in which he said the decisions of management were important to increased U.S. productivity: o "Management must face up

P. O. Box 706 Cloverdale, Ca. WA23

(707) 894-3997

AII\N SVANY)N DAVID PONTS

International Div. P. O. Box 4868 Arcata. Ca.95521 (707) 822-4615

KEN II\I.JDENSCHII\GEN to the fact that much of the U.S. manufacturing plant was designed and built in another era. Back then. labor cost increases were largely covered by productivity gains, energy was cheap, and pollution treatment costs were low." o "Management has to analyze businesses, products, and markets so it knows with reason- able certainty which are not generating profits near replacement cost levels, and which contain genuine growth potential. Then management has to act accordingly and on time."

Louisiana-Pacific Award

Louisiana-Pacific, in keeping with its interest in how the nation is housed. has made its first $20.000 LouisianaPacific Materials Grant to the People's Development Corp., Bronx, N.Y. The award was presented to the group for its efforts in renovating a run-down six-story apartment building. It did the work with a $300.000 loan from the city, using labor as the equity. Alier tens of thousands of hours of o "Management must bear down objectively and determine which manufacturing facilities and processes are economically obsolete and which are savable by targeted investment."

Material Shortages

(Continued from page 34) o "Management must commit sufficient research and development dollars to guarantee that new processes, products, and technologies meeting the needs of a new economic era will be comine along, and on time." labor, the group transformed the build- ing into 28 modern solar-heated cooperative apartments which are being bought for as little as $96 per month. new federal clean air standards have forced some older cement plants to shut down. "We believe serious consideration should be given to easing of certain environmental standards for a limited period until the cement shortage eases," he said.

The L-P award is given annually in the form of materials: lumber, plywood, particle-board, hardboard, windows and doors.

The $20,000 award was begun by the company to stimulate a spirit of self-reliance; to help others help themselves by the wise use of the forest.

Builders also are encountering "serious Shortages" of gypsum plaster board and delays of four to eight weeks in getting deliveries, he said. "Such shortages and delays slow construction and further add to the cost of houses being produced. "

Despite the strong demand for gypsum products, which is expected to continue through the next decade, and the record profits, "there is little evidence the industry is taking steps to increase plant capacity," he said.

Gravlee noted that three producers accounted for 'l2o/o of the total gypsum product sales. One of the firms saw profits rise 17206 during the first half of 1978. Another recorded a 900ft increase in profits.

WBMA 75 ANNUAL

(Continued from page 16) than for profit. He urged the "importance of keeping your banker involved in your business and how it is changing and evolving."

Vic Camozzi, Volco, lnc., urged dealers to convert to LIFO (last in {rrst out) accounting from the FIFO (first in. first out) system. He said (Please turn to page 49)

WESTERN BUILDING MATERIAL ASSOCIATION 4O.YEAR CLUB MEMBERSHIP LIST

Dale Anarde

T. E. Austin

James Baker

J. C. Barnard

W. H. Barnett

W. C. Bell

J. M. "Mel" Bettis

Dwight S. Billington

Ray C. Blackstock

Warren D. Boyer

Carl E. Brown

D. Earl Clark

Roy Clothier

Warren A. Cochrane

Alfred D. Collier

Frank M. Dunn

O. L. Engle

John L. Fowler

Lee A. Frazier

Carol Gay

M. F. Gilmer

E. A. Green

Homer Greer

Vern Greer

Sam Hale

Ray E. Harlan

46 YEAfiS of managing the Western associati0n are represented by Ross Kincaid, a top oflicer from 1955-1976 lleltl and W. C. "Bill" Bell, a bright and alert 89-year-old who was managing oflicer 1934-1957. The present managing officer is Chuck Link.

C. M. Harmon

C. W. Harrington

Lonnie D. Hatfield

Glen W. Hout

Norman Hove

Ralph T. Howard

Tom Howell

Ansel E. Hyland

George Jacobsen

Norris Jensen

George Johnson

V. L. Johnson

Wilson E. Johnson

Homer B. Kendall

Ross G. Kincaid

Gunder W. Kjosness

Morris Kleiner

Carl Knoll

Walter Krueger

Hec LaChance

Robert Lightfreld

James H. Livesay

Ray Logan

E. S. "Mac" McCluney

William V. Meade

Frank E. Meyer

R. A. Meyer

Carl C. Miller

William F. Miller

Raymond E. Morgan

C. E. Nelson

V. W. North

V. E. O'Neill

A. H. "lke" Parker

Winston S. Pool

Frank J. Powers

F. H. B. Richards

C. S. Richardson

T. C. Rowe

Kent Rubow

George Scharpf

L. V. Schramel

Max L. Sears

A. Alden See, Sr.

Raymond G. Snyder

Oscar Steigleder

Walter Steigleder

L. P. Stranahan

Morris S. Tarte

Harold Uglem

William H. Van Hoy

Paul Van Petten

Burt L. Vaughan

Floyd F. Volk

Reg Wert

Jerry Williams

Wallace G. Winter

O. L. Withers

(Continued from page 48)

LIFO is more accurate, has tax advantages, that it preserves cash. increases cash flow, and cuts down on borrowing needs.

The all-industry luncheon speaker was George Milne, v.p. and publishing director of Home Center magazine, who presented a slide show on "the best ideas that I've seen work. " Looking vaguely Churchillian in a blue striped suit, Milne told dealers that "buildine materials will always be the base oT the home center business."

The WBMA 75th anniversarv party that night wrapped up the four days of activities. Recognition was given of those who have done so much to maintain the excellence of the association and to prepare it for its next 75 years.

Earlier in the day, a hotel staff member had said it all when he volunteered to a convention visitor, "they sure are a well-organized group."

BEL.AIR DOOR

(Continued from page 12) other products that contributed to better time utilization and productivity.

The celebration to honor Ramirez included the entire office force, plant workers and manage- ment, nearly 100 strong, taking time from the work day to recognize and congratulate a man who has done so much for their company. Only the phones were manned as the entire block-square plant come to a halt.

Included in the tribute were Bel- Air Door and its two sister companies, Tyre Manufacturing and Alhambra Metal Products Company.

Among the gifts Ramirez received was a brand new portable television set.

13 hardworking acres, specializing in mouldings, upper grades in softwoods, imported and domestic hardwoods. Complete milling and kiln drying facilities. RR spur.

RETAIL/WHOLESALE MEET

(Continued from page 26) the labor pendulum had swung too far and that industry can successfully resist labor's initiatives.

The concluding panel discussion, all of whose members belong to the under-35 Second Growth club that is part of LASC, was modeated by Randy Port of Chandler Lumber.

Lead off panelist "Hap" Hasty, Schmidbauer Lumber Co., Arcata, explained their position as a mill by noting their objective was to maximize their recovery from the logs they cut and to use wholesalers, rather than sell direct as some of the others do, as selling through wholesalers gives them a better profit return.

Richard Miller of Burns Lumber Co., a veteran wholesale firm, said that to properly serve their retail customers they must utilize the service of a number of mills to assure that they can supply what is needed when it is needed.

Jack Berutich, a past president of Second Growth and sales manager of All-Coast Forest Products. Chino. Ca.. noted that most wholesale distribution yards honor the traditional distribution channels as it is in their best interest to do so.

He noted that it was impractical for a wholesale firm to sell contractors on a continuing basis as they lacked the dealer's sales expertise.

Michele Alexander, a buyer for Reliable Wholesale Lumber, said that as retailers, they buy from wholesalers, rather than mills, because the wholesalers perform the services needed by retailers. She observed that more retailers are specializing and that industry members should remain flexible and not look upon change as a negative condition.

The convention will be held this fall, again at the Spa Hotel, Nov. 14-11

Third-Quarter Housing Up 7.5o/o

In the third quarter of last year construction of new housing units showed a 7.50h gain compared to a year before, according to McGraw-Hill Information Systems Co.

New housing totaled 520,989 units. The three leading housing areas, each with nearly 13,000 new dwell!1S units for the period, were Chicago \12,842 units), Llouston (12,820 units).and rhe L-os Angeles/Long Beach area (12,146 units ).

Others in the top-ten: Phoenix, I 1,032 units; Dallas, 10,887 units; San Diego, 8,349 units; Riverside/San Bernardino, Ca., 7,951 units; Denver. 6.589 units; Tampa. 6,524 units; Washington, 6,222 units.

U.S.'s Biggest is Remodeling

All American Home Center, Downev. Ca.. which claims to be the world's largest home cenier. is creating two new departments and completely redesigning 10 others.

The new departments will be a Cutting Service Center and a Home Security Department. The new Cutting Service Center will be 800 sq. ft. open to customer traffic, not closed off behind a counter. Each category of merchandise will have its own area with cuttins and measuring devices located adjacent. A superviso-r and specially trained crew will serve customers as well as advise on proper selection of material. Categories of merchandise include glass, electrical wire, cha'in. rope, keys, hardware cloth, copper tubing, etc.

The Home Security Department will consist of fire safety items, home burglar alarms, safes, locks. lock sets and security hardware.

12 ACRES t)F SELF.CONTAINED CONS()LIDATION, STORAGE, TRUCKING, MANUFACTURING, AND WHOLESALE 0|STRlBUT|0N FACILITIES . 23 YEARS

0F GR0WTH AN0 EXPANSI0N PR0FESSI0ilALS lN CEDAR SPECIALTY ITEMS o FAST RESPONSE o FLEXIBLE MANUFACTURING AND SALES P()LICY

. 1x2, 1x3, 2x2,2x3 - COMMON AND CLEAR, GREEN, SURFACED AND/OR R()UGH

CEDAR M0ULDING ST0CK - TIGHT KN0T AND CLEAR

FENCING BOARDS - GRAPE STAKE TYPE PALINGS - BENOER BOARDS

. GARDEN - I{URSERY - DEALER - INDUSTRIAL ITEMS o RANDOM WIOTH AND THICKNESS R0UGH GREEN BARNBOARDS

San Diego

I enjoyed reading "San Diego Memories" Gee The Merchant, Nov., 1978, p.58) and even though Bob Sutton of Fallbrook Lumber Co., Fallbrook, Ca., has got to have the most super memory in the industry, he didn't mention the late Morgan Williams who sold for Dant and Russell on 28th Street where Dixieline later had a yard.

Also, speaking of Dant & Russell, he missed the company's arrival in San Diego in 1949 and first location in the north end of the old Consolidated Aircraft Building. At that time Chub Durnell was manager and Al Bufkin was yard manager and a part-time salesman. Herman Smith and Art Neth were with the Los Angeles operation at that time.

After reading Bob's letter, I would like to make the suggestion that you commission him as the entertainment director and historian of "The Merchant. "This has alwavs been such a great business but largely because of the great people in it like Bob Sutton. Regards,

Allan S. Bufkin

Sunrise Forest Products Co.

ll0 E. Palizada, Suite 302 San Clemente, Ca. 92672

Hardwood Issue

I want to compliment you on the special hardwood issue you published in October. This subject has needed covering for some time and you did a fine job.

There is one omission. however. that I would like to call to your attention. No mention was made of the alder and maple from the northwest. This is an important forest crop with the l8 billion board feet sawlog inventory exceeding all soft maple in 14 states by 3 5olo.

The resource is larger by ll% than all aspen, 2-ll3 times the supply of basswood and within I106 of all poplar growing in the midwest and east. Alder is more than double the supply of birch and is widely used all over the l3 Western states for furniture, upholstery frames and kitchen cabinets. As a matter of lact it has been stated that alder is the number one wood in kitchen cabinet construction.

Fortunately for the lumber, building material and home improvement markets which you serve, alder is logged and manufactured on a year round basis which means inventories can be kept at a minimum and supply coordinated with plant use. Unlike most other hardwoods, alder is kiln-dried and surfaced before shipment from the mill

Very sincerely,

R.D. Behm

Marketing

Consultant

Northwest Hardwoods, Inc.

1300 S.W. Fifth Avenue

Portland, Oregon 97201

Old Retail Yards

Regarding your question as to the oldest lumber company in the West, (see The Merchanl, Nov., p. l6) I thought [the enclosedl might be of interest. Although it has moved twice, our Ventura, Ca., yard has been in business since its founding.

Bill Rau

Peoples Lumber Co. of Oxnard

P.O. Box 827

Oxnard, Ca. 93030

The newspaper clipping sent notes thot People's Ventura yard was started in 1881, adiacent lo on old Spanish mission buildinc. Modesto Lumber Co., the subject q/ a story in our November issue, celebrated its l00th birthdav Iast vear.ed.