Coping in tough times themes conference

ESPITE the distractions of Palm Springs, members were present and accounted for at the business meetings as the Lumber Association of Southern California held its 32nd management conference and annual convention.

Topics covered a range from pursuing excellence to finance, transportation, customer service and changes in the wood market.

Elections were the first order of business with Jim Frodsham, South Bay Forest Products, elected new president; Milt Johnson, Home Lumber, lst v.p.; Ed Fountain, Jr., 2nd v.p.; Phil Butterfield, sec.; Al Newkirk, treas.; and Wayne Gardner, re-elected exec. v.p. at the Nov. I l-13 meeting.

Inspirational speaker Chuck Boyle counseled the dealer and wholesaler membership of LASC to use positive discipline to help employees move onto higher goals as management helps them to a higher level of performance. He said leaders must command, not demand, and should play to their strengths. He defined success as "achieving the very best that's in you."

Bank of America economist Dr. Eric Thor forecast a weak recovery; housing starts 2590-3090 above 1982; a double digit prime lending rate in '83 accompanied by home mortgage rates between 120/o -74V2 s/0, dropping to l09o in 1984. "The West won't outpace the country," he forecast, saying that Southern California has transportation problems, costly housing and fewer new jobs being created.

Adapting sales and service to changed market conditions was discussed by a panel composed of members of Second Growth, the LASC's under 35 group. Lead off panelist Bill Sullivan, Golding Lumber Sales, said his firm had adjusted by, among other things, assuring suppliers, re-evaluating accounts, collection procedures and becoming more aggressive in sales to their dealer customers.

Retailer Geoff Rue, Chandler Lumber, stressed that they had to be certain that their customer could sell newly introduced items. He said "the best sale is made with the ultimate customer in mind." Customer service was becoming increasingly important, Rue said.

Brent Bouslog, Ganahl Lumber, observed that they had intensified their efforts with existing customers, rather than seeking new ones. It had proven a profitable method for them, he said.

Next speaker, transportation expert David Benson of Hampton Affiliates, Portland, Or., forecast more reload centers and increased use of inter-modal shipments between the Pacific Northwest and California. Barge traffic could be affected by the question of a duty on Canadian lumber exports to the U.S. He said the best way to check rates was to call the carriers directly, as their experience indicated even the field sales personnel were not keeping current with the jumble of new rates since deregulation came into effect.

Another panel discussion, this one on full service lumber distribution, was begun by Tom Betts, Betts-Sine Lumber, who noted the excellent job done by their hardware department manager, a woman who understands how to serve homeowners, an important part of their growth plans. They

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OLD & NEW presidents (1) Peter Ganahl, Jim Frodsham. (2) Shirley & Bob Abbott, LASC exec. v.p. Wayne Gardner. (3) Miles Davidson, Wally Swanson, John Sweet. (4) Geoff Rue, Brent Bouslog, Michael Learned, John Ganahl. (5) Tom Betts, Bill Cowling, (6) Bill Beale, Ralph Smith. (7) Lynne Walker, Dave Benson, Henry Voorhees, Gordon Beach. (8) Ralph Cardwell, Ray Bell. (9) John Newquist, Warren Lindsay, Dennis Kirk. (10) Lloyd 0lson, Jim & Babe Pottratz, Larry Olson. (11) Steve White. (12) Robert Marriott, John & Chuck Jenkins. (13) George & Donna Swartz, Kris Betts. (14) Roy Peterson, Bob Sievers, Erik Jorgensborg. (15) Milt Johnson, Don Watson.

The Supreme Court has ok'd the controversial acquisition bY the Union Pacific Railroad of the Missouri Pacific and Western Pacific RRs An across the board rate increase is now in effect for railroads nationwide . . With ICC approval private carriers can now "trip-lease" drivers andequipment...

Burlington Northern is increasing capacity of its Yeon St. piggyback yard in Portland, Or., by 7090 with a $600,000 expansion . Lumber inventarles have dropped in the West to 1.992 billion ft., lowest recorded since Jan.'73...

The federal bankruptcy court is allowing a product failure suit involving Rescon, aManville CorP. wall product, to proceed in Ca. Dsnt & Russell Inc., Portland, Or., and four subsidiaries have filed Chapter I I bankruptcy petitions

More than $5.4 million lawyer and accountant fees charged to Wickes Co.s are being reviewed by the bankruptcy court Evans Products Co. has closed its home-building business with an operating loss of more than $11 million and a one time loss of $20 million; the Evans building material business sale to Sharon Steel Corp. is still pending

Diqmond Internot ional'smerger into Diamond Acquisitions Inc. has been approved by shareholders . St^sftivou Plumas Lumber Co., a new firm established by lumbermen Fred and Bill Duchi and Frank Hasy, has purchased the old Essex Lumber Co., Quincy, Ca.; production is 859opine...

Resales of existing singlefamily houses rose to an annual rate of 2.1 million in Nov. (latest figs. available) . . . New housing starts reached a 22 month high with 1,428,000 units, 6690 above Nov. l98l Single home starts were up 23.7V0; permits for future construction up 6.lslo .

With the signing of the gasoline tax bill, double-bottom and other large trucks from the West Coast will be o.k. to travel on federal highways in Eastern and Southern states where they had been banned. .

Sun-Tek has mothballed its Woodburn, Or., facility, consolidating operations to its Portland Hq., for improved shipping service . . Falcon Manufacturing Corp. is a new plywood mill oPened in Eugene, Or., by Rod Noah, Bob McNaught, Doyle Hall, Roger Batson and Everett Christian.

MacBeath Hsrdwood, San Francisco, Ca., reports that its Montebello, C3., yard is now 10090 operational after a devastating 1981 fire . Wholesale distributian is slated to grow more than 49a per year between now and 1990. ..

Hugh M. Woods Co., Denver, Co., plans to build two units in Las Vegas, Nv. .84 Lumberhas a new store in Damascus, Or. . AII Americon Home Center, Downey, Ca., is converting 3,600 sq. ft. of warehouse into retail space . Anderson Lumber Co., Bountiful, Ut., has remodeled with a d-i-y emphasis; Ketchum, Id., Park City, Ut., Rupert, Id., and Tremonton, Ut., are next for a face lift with a new 40,ffi0 sq. ft. home center slated to be built in West Jordan, Ut.

The four Handy Andy Stores and Sunset Lumber & Distributors, which make up Sunset In' dustries, Tucson, Az., have been purchased for $2.03 million by the firm's chairman and pres. Harold Kitay . . Sharps Home Center, its 84 on of of

Hemet, Ca., has expanded building and parking lot Lumber Co., has a go-ahead construction after two Years controversy with the CitY Phoenix.Az....

Wrightwood Hardwore and Lumber, Wrightwood, Ca., was destroyed in a $200,000 fire . . Payless Cashways Inc. has Purchased the seven Lumberjack home improvement stores in Sacramenton Ca., for $26.2 million in cash . . . San Fernando Lumber Co., San Fernando, Ca., is alive and well: it is San Fernando Valley Lumber Co., Burbank, Ca., that has filed Chapter 1l

HUD has deep sixed a staff Proposal to grant relaxed thermal standards for masonry construction in localities South of an imaginery line between Washington, D.C. and Oregon.

The International Trade Administration has termed the Peti' tion for Countervailing Duties on Canadian Softwood Lumber a "complicated case" and set March 7 as the deadline for a Preliminary determination on whether or not the Canadians have a government subsidY . .

Denying published reports elsewhere that they would open several freestanding home improvement centers in So. Fl., Sears reveals they actually will open six free standing paint and hardware speciolty stores in the Chicago, New York and Los Angeles metro areas this year

Top executives in heavY construction and contracting trades posted al6Vo average earningsin' crease in'81 as opposed to a 13Vo increase by executives in other major industries CaPitol spending appropriations by the 1000 largest mfg. co.s are the lowest since late '78

Mortgage foreclosures hit a record 16'l ,40A in the third quarter, but delinquencies droPPed. mortgage interest rates fell to a 2-year low in Nov. with a 13 to l4Vo average FHA and VA max. rate at l2Vo With the end of the Section 8 program, for the lst time since 1937, the countrY has no federal program to build public housing

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