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February, f986

February, f986

I(D HEM.FIR STUDS

I(D LODGEPOLE PINE STUDS 2x4 ond 2x6

Ituck and trailer shipment < > vans an d piggynacf available. Shipplng location: Lenz Sidlng, Or. Southern Paclflc and eurllngton Northern.

cAscADE STUDS, |N@RFORATED, HC63, Box 302 Chiloquln, q.97624 Charles Ktchel, sales manager

NFPA Targets New Markets

Under the banner of "Serving Tomorrow's Markets," the National Forest Products Association concluded its 1985 Annual Meeting in Los Angeles on Nov. 19 with a resolution opposing the tax bill that was currently pending in the U.S. House of Representatives.

NFPA also approved the formation early this year of the American Forest Council. The new association would meld together the forest productivity progr:rms of NFPA's Private Timber Division, the Tlee Farm System and communications programs of the American Forest Institute.

Further changes in NFPA's structure and progra.ms were suggested

$28.7 M illion Telephone N etwork

The most important business tool used in the distribution of forest products is the telephone. Today there exists an extensive network of telemarketing professionals who in 1982 spent nearly $28.7 million in telephone expenses to market $7.2 billion of forest products. This vast sales network consists of the 340 North American Wholesale Lumber Association firms who participated in their recently completed NAWLA 1983 Sales Survey.

The telephone expenses are evidence that the NAWLA Wholesaling Network is indeed a vital link in the chain of forest products distribution. The $28J million represents savings to both manufacturers and customers alike in the distribution of forest products.

Telephone expenses increased by $7.3 million from 1982 to 1983. This figure represents an average telephone cost per firm of $84,304 in 1983 compared to $59,359 in 1982.

This era of specialization has brought with it a substantial increase

Tube Outranks Reading

Home centers not using tv as an advertising medium, should consider adding it to their promotion program, according to the Television Bureau of Advertising.

Adults spend more time watching television each day than listening to the radio or reading magazines and newspapers. Tube time clocks out at over four hours a day as compared to less than three hours devoted to listening and reading.

from the results of a recently completed survey of both members and non-members. The results pointed to the need for a better NFPA marketing program and greater member involvement in association activities. A detailed action plan will be presented for review by the board at its January meeting.

The two-day meeting was heavily oriented toward market expansion. The Product Division demonstrated new applications of computer software for aiding builders, architects, and others in the design of foundations and in determining the fire performance of wood assemblies.

NFPA staff was authorized to work closely with treated wood producers in the number of sales and support personnel employed by NAWLA wholesalers. In 1983, NAWLA wholesalers employed 4,345 salespersons, and another 10,M2 support personnel, an increase from 1982 when there were 3,249 salespersons and 6,088 support personnel employed by these firms.

These totals represent anearly 25s/o increase in sales personnel. While part of this increase can be attributed to and distributors in complying with new EPA guidelines for the handling and use of treated wood products. NFPA will help to implement a consumer awareness program. better volume business, there is a trend towards more distribution yard and remanufacturing facilities, requiring more people to sell products in smaller unit size transactions.

NFPA also elected new officers for 1986. They are Richard W. Buchanan, Jr., president, Buchanan Lumber Company, Inc., chairman of the board, replacing past chairman Robert F. Higgins, president, Medford Corporation. John E. Stevens, president, Kirby Forest Industries, Inc., is first vice chairman; William M. Shields, executive vice president, Willamette Industries, Inc., second vice chairman. Reelected president and secretary respectively were David E. Stahl and John F. Hall.

The survey also revealed that more companies are utilizing credit managers and traffic managers, and in larger firms this often means additional support personnel assisting these individuals.

D-i-y Growth Set To Take Oll

Annual growth of 5.690 through the next five years is seen for do-it-yourself business by Dr. Bert McCammon of the University of Oklahoma.

"There will be explosive growth in d-i-y market potential among the 35-54 age groups, both of which are more aggressive d-i-yers than other segments of the population," he pointed out to some 80 home center and manufacturer executives attending the first executive conference sponsored by the Home Center Institute.

Better store position is needed in order to compete, Brad Farnsworth,

Housing Expansion Winds Down

After three years of expansion, housing is showing signs of gradually slowing down because of declining economies in many areas of the country, according to John J. Koelemij, president of the National Association of Home Builders.

"The national market is winding down-not collapsing," Koelemij said. NAHB still predicts about 1.72 million new housing units in 1985, director of research services for HCI, stressed, pointing out that consumers evaluate retailers on price, value, convenience, assortment, quality, merchandising and service. down from the 1.76 million starts in 1984 but ahead of the 1.7 million in 1983.

Other discussions at the Nov. 5-7 meeting in Chicago revealed that retailers want more help from manufacturers in encouraging d-i-y activity and teaching them how to do tougher projects. Retailers also feel they will become more involved with the Universal Product Code and electronic ordering. Making people more productive through profit sharing and doing more consumer research are challenges of the future.

"What's happening today is unique to the housing industry," he said. "In the old days, we rode the interest rate roller coaster. When mortgage interest rates fell, housing construction picked up. Interest rates are still important today but the rate of new job creation, the growth of real incomes and other local market conditions are equally important considerations. "

Raised Wood Floors OKd

Houses built on wood "crawl space" foundations are just as energy efficient as those built on poured concrete slabs, according to results of an intensive 60-house study commissioned by the Western Wood Products Association.

The findings contradict theories basic to the development of energysensitive building regulations since energy costs began soaring in the early 1970s.

Though delayed while under analysis and just made Public, the studY was conducted over the winter of

Wood Homes Score In Peru

The myth that wood construction materials and systems will not sell in masonry-dominated markets has been demolished by the rush to purchase 15 American Plywood Association demonstration houses built near Lima, Peru, according to Dave Rogoway, APA vice president, marketing.

Peruvians lined up to buy the homes, demonstrating that they consider them better than the brick

1984-85 by ConSol, a Stockton, Ca., energy engineering firm, with the cooperation of PG&E. The results have led to further research to determine why raised wood-joisted floors perform as well as slabbetter than energy technologists had believed.

WWPA members were concerned that declining lumber usage was due in part to California's new residential building regulations which had led many contractors to trade 2,000 board feet of lumber per house for a sheet of poured concrete.

The ConSol/PG&E researchers matched up 60 homes, all in the same climate zone located inland from the

San Fracisco Bay Area in Northern California. Half had been built on slab. half on crawl sPace foundations. All houses were virtually identical in square footage of floorspace, floor plans, window arrangement, orientation to the sun and other factors critical to energy considerations. All houses also had been constructed prior to the implementation of the new energy regulations.

The study drew uPon actual utilitY bills for each of the houses involved over the same l2-month Period. Hot water heating was subtracted, so the analysis covered onlY the costs of space heating and cooling' homes for sale in the area. A total of 2,395 potential homeowners took part in a government sponsored lottery to decide who would be able to purchase the wood homes. This was twice as many as applied for brick homes of similar design.

Door Stories Spur Sales

A series of articles on energy efficiency, esthetics and ease of mainten- ance of today's wood windows and doors being distributed to more than 2,700 newspapers across the country should stimulate sales for building material retailers.

Prepared and distributed by the National Wood Window & Door Association. the articles are intended to educatp homeowners, increase the use of wood windows and suPPort the sales efforts of dealers and distributors.

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