OPERATING OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box741623 Dallas, Tx.75243

GINCE retail chain stores began 9 advertising selling prices, competing independents have questioned how they do it. This has been more prevalent in the last few years as the consumer oriented entrepreneurial lumber yard experiencedcompetitive pressure by reduced housing starts. If this question were a symptom of a disease, it would have long ago hospitalized or at least quarantined the independents.

The answer is not simple. Pricing is a judgement call generated by factors like where and how one buys, distressed merchandise either on location or at the supplier level, competition, brilliance, ignorance, systems and computers, or lack of either, marketing strategies, or lack of them, plus other numerous factors.

The biggest culprit, almost universally undetected, is the accounting system. Over 90% of the dealers who directed the pricing question to our office had to begin solving the riddle by reevaluating the numbers generated by their accounting people.

Several federal and private agencies contribute to the nation's accounting guide lines and procedures. These systems are designed to facilitate the collection of taxes, not to provide business owners with decision making information. This can be devastating to one's ability to compete eflectively and profitably.

Follow this scenario by a client who asked "How do they do it?" His company did $2,000,000 in sales for its last fiscal year at. 25o/o maintained margins and 20/o pre-tax profit. Sales were evenly split betweenconsumers and contractors, but each had experienced a volume loss during the previous year.

He was asked to obtain information on four ofhis expense accounts. In a few days he advised that (1) the company had spent $12,500 on financing receivables; (2) $90,000 on delivery; (3) incurred $10,000 in losses for bad debts and

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. Jenkins: DoubleEnd/Single End Machining Centers.

Cemco: Wide Belt Sander & Boring Machines.

. Montgomery: Hogs

. Unitronics: Resaws

Venjakob: Finishing Lines for mouldings

Rancho California Co. Opens

Rancho Ilarduoods Ir-rc. is a ncw firnr serving Riversiclc arrd San l)icgo counties fiorl the ncwly boonring citl of Rancho C'alifbrnia, ('a. l-ocatccl just ofl llighwal' 15. lubout 75 nrilcs southeast of' I.os ..\ngclcs. thc company offers harclwood lunrbcr and pl1'wood. nroulclirtg:. tttilluork lrnd high pre:surc lanrinatcs both wholesale ancl rctail l'ronr its 12.(X)0 scl Ii. industrial br-rilcling hclrclcluarlers l1 also sells nrill clirccts.

J'oclcl /inrnrcrnran is thc nranagcr. 'l'hc co-o\\ncrs ol' I{ancho Ilarclwoocls rrrc .lirck IIar.cns. Soulhwcst I)lvu'oocl & I unrbcr. I{ancho l)onringr-rcz. ( u.. unrl ( lint Ilower. l\{ariners l:orcst I)roclucls. Santa ,,\na. ('a.

Hardie To Shake The West

James llardic Inclustrics. onc ol' .\ustralia's largest and oldcst public companies. is expanding its shakc rooling business to gain a greilter share ol'the $150 million \r\lcst ('oast shinglc nrarket.

Ilarclic's building products division in Mission Viejo. ('a.. is cur- rcrrtlf inrporting its fire-resistunt llbcr ccnrcnt shake. rvhich hacl 1987 sulcs o1'about Sl nrillion.

Shakc sales o1' S22.-i ntillion are targctecl br thc tinte llarclie 's $3[) nrillion. I10.(XX)-sq fi. shake n-)anulactr-rring plunl in [:ontana. Ca.. opcns latc in 1989. ('onstruction began last nronth on thc plant which annuulll u'ill proclucc cnough shinglcs to covcr aboul 10.000 hontes.

Hardwood On Trade Mission

As a result of p1q11icip31ion in un Oregon trade mission to Taiwan and Japan, hardwood producers in the West have the potential Ibr increased sales to those countries.

Displays of alder and maple including finished products were part of the promotion carried out bv I)ave Sweitzer. secretary-manager c.rf the Western Hardwood Association.

After spending a week in each countr]-. meeting people at receptions. the Western Hardwood Association booth andscheduled appointnrents. Sweitzer is following up with a letter to each person contacted. Inquiries about hardwood lumber, cut-stock and veneer are being distributed to the membership.

NAWLA Sets Meet Schedule

"[.ooking Ahcad With Vision" is the thcnrc ol' thc North '\nterican Wholesale Lunrber ;\ssociation's 96th annual nrccting. r\pril I 7-20. 1988, at thc Innisbrook ILesort. Tarpon Springs. l:1.

John Mcl.aughlin. host ol-the weekll' PBS/NBC public aflairs program "The I\{cLaughlin (iroup." will be the f-caturecl spcakcr a1 thc meeting. expected to draw about 700 delegates.

,{lso featured will be economist N'lrchael K. F,vans. two open forums on conrpllter soltware and employee rcviews. and the business contact SCSSIO NS.

High Tech Window Glass Hot "l{cgulrrr clouble-panc winclou's rurc bcconring obsolclc." sals Jack I jllrich. nrarkcting nranager fbr .\nclcrscn ('orp.. llalport. l\1n. ('r-rrrcntll, nr<lrc tlran half of their orclcrs clrlI lirr low-cnrissivitv insulating glass. .,\llhor.rgh 1hc Jow-l: glass costs slightly nrorc. thc clill'crcrrcc is ofl'sct in thrcc to llr c r curs. basccl on energ) cost sa\ ings.

STIMSON TRADING COMPANY OFFERS

A FULL LINE OF LUMBER, TIMBER, AND PREMIUM SIDINGS.

Timber owner, manutacturer, and wholesaler, Stimson Trading delivers a full line of lumber and timber products: dimension lumber, heavy timbers and premium sidings of redwood, fir, and hardboard. Scheduled delivery is by truck, rail, and barge Competitive prices and fulfillment of contract obligations are the basis of our service.

Call us at (503) 295-0951

Stimson Trading Company. Studio One, Roof Garden Pacific Building Portland, Oregon 97204

We Take I

IHl HEM'FlR

This fine-textured, non-resinous timber has an excellent weight/strength ratio. lt ranks high in fiber stress (FB) and elasticity (E); and shows relatively small changes in dimension through absorption or drying. Hem-Fir is easy to work and shape.

Try our HEM-FlR Dimension!

Glulam Grorp To Vancouver

The American Institute of Timber Construction has moved its headquarters to Vancouver, Wa., after being based in Englewood, Co., for the last 17 years.

"The move is going to give us easier access to the majority of our glued laminated timber producers," said president Ted Weir. "lt also locates us nearthree major engineering and forestry universities and their testing facilities, as well as other wood product trade associations, such as the American Plywood Association and the Western Wood Products Association."

Founded in 1953 in Washington, D.C., AITC represents 27 glulam manufacturers and offers technical information, assistance and quality control services.

New Kitchen Design Ghain

Competition to home centers specializing in kitchen remodeling suppliesand services has come to the Los Angeles, Ca., area with the opening of a prototype Design Works Kitchen Center.

Said Dennis Finch, president of Whirlpool Kitchens, Inc., "With the growing trend toward integration of cabinets, appliances and accessories in the kitchen, we think we can be at the forefront of that integration. We envision that most of our sales volume will result from complete design packages."

In addition to this center built in the Los Angeles suburb of Torrance, a second center for do-it-yourself to premium-end customers will open in Huntington Beach, Ca. Other centers are located in Colorado and Arizona. Plans are to expand the chain nationally.

Housewares Called lmpulse Buys

Retailers not using point of purchase displays in their housewares departments may be pushing their customers to buy those items in the super markets or mass merchandise stores.

Recent studies show that 690/o of the consumers shop without a shopping list and make on-the-spot decisions to buy about 66.1% of the time. In the housewares category, the study showed that 800/o of the purchases were based on an in-store decision with 65% of the decisions made on impulse.

A breakdown of housewares categories showed that appliances, dishes, silverware, glassware andgarden supplies were bought on impulse 1000/o of the time. Cookware andbakeware had a 6l% impulse buying rate while kitchen equipment was an impulse purchase 7I0/o of the time. Sales of all housewares increased when point of purchase displays were used.

National Housewares Manufacturers Association research has discovered an increasing number ofshoppers relying less on advertising and more on in-store product information to make purchases. Four out of ten shoppers reportedly use in-store displays as their primary source of information.

Researchby the Point-Of-Purchase Advertising Institute, lnc., reports president John M. Kawula, found 860/o of shoppers said that they were not exposed to television or radio promotion before shopping.

National Lumber In Top 1OO

National Lumber & Supply, Inc., a Southern California home center chain based in Fountain Valley, Ca., has been identified as one of the Top 100 Public Companies in Orange County.

Sol Jaffee is chairman of the firm which was ranked l?th with sales of $136,000,000. Started in 1943, the chain employees 1,350.

Companies on the list were ranked by 1986 sales revenues reported to Dun and Bradstreet. Info Source, a research, investigation and information broker in Newport Beach, Ca., provided the list which was published in the Orange County Business Journal.

Youth Ghooses The West

The youngest Americans live in the West, where the median age is 31, according to U.S. Census Bureau estimates. Florida has the oldest residents, with a median age of 36.

The national median age of women is 32.9 andof men is 30.6, the survey determined.

U.S. ls On The Move

The greatest increase in Americans changing homes in 30 years was recorded between March 1984 and March 1985. as 46 million moved, up about 7 million over the previous year.

About 37.50/o of those moving were in their 20s, while a low of 60lo were at least 65 years old.

We are proud to represent:

...and we will be glad to assist you with o plywood r plywood siding

. oriented strandboard o mdo concrete form o paneling-hardwoods o roofing-louverboard o cladwood products o decorative overlays o Douglas fir . hem-fir o spruce o pine . stress-rated o treated lumber o timbers

Bob Davids has joined Rolando Lumber Co., San Leandro, Ca., as an outside sales rep.

GregOlsen is new to sales at Thomas Forest Products, Eugene, Or.

John Boardman is the sales mgr. of Pan Pacific Forest Products, Lake Oswego, Or. Dan Nabors will handle sales for the Bend, Or., based firm from Arcata, Ca.

Carl Force, lumber group sales mgr., Georgia-Pacific, Fort Bragg, Ca., has retired after 14 years with G-P. He began in the industry in1942 with the old Union Lumber Co.

Michael O'Malley has been named v.p., installed sales, forThe Property Doctors, Phoenix, Az. Roy Burleson is the pres.

Gary Messenger and Tim Gnutzmann are now selling for Crestwood Forest Products, Bethel lsland, Ca., accordingtoRon Dybas.

John Turner, Cal State Forest Products, Anaheim. Ca.. is back from a Utah ski trip.

Bob Salas is the new gen. mgr. of Ganahl Lumber Co.'s architectural mill, Anaheim. Ca. Jim Nash is now asst. contractor sales mgr., Janice Slife, homebuilding class director.

Gordon M. Ball has joined South Coast Lumber Co., Brookings, Or., as controller and c.f.o. He replaces Jim Murphy, who has joined an accounting firm.

Mike Allen is new to Ensworth Forest Products' Blue Lake, Ca., sales office.

Bob Courtney, Pope & Talbot, Inc., Portland. Or.. has returned from a trip to Australia.

Dwayne Charter has joined the sales team at Siskiyou Forest Products, Woodland, Ca., according to Fred Duchi.

John Cole, John T. Cole & Associates, Beaverton. Or.. has been on a West Coast swing doing sales and marketing consulting for his company which is also a leading executive search firm.

John Lefors, gen. mgr. for particleboard and MDF, Willamette Industries, Albany, Or., has been re-elected pres. of the National Particleboard Association. Also re-elected: v.p. John Masaschi, Georgia-Pacificl sec./ treas. Jack Sweeny, Temple-EasTex; technical committee chairman Don Cox, Temple-EasTex; promotion chair Norman Voss, Georgia-Pacific, and production management chair Mark Tracy, Weyerhaeuser.

Calvin Hughes, yard mgr., Freres Building Supply, Jefferson, Or., has retired after 41 years with the co. Robert Parrish succeeds him.

Robert "Butch" Bernhardt Jr., Western Wood Products Association, has been assigned to the Western Red Cedar Lumber Association, Portland, Or., as director of product promotion.

Ken and Donna Benfield. owners. Coast to Coast, Rexburg, ld., were honored as Businessmen of the Year by the local Chamber of Commerce.

Michael Momb, pres., M&W Building Supply Co., Canby, Or., has been selected to serve on the Society of Agricultural Engineers Board.

Marv Goodman, gen. mgr., Freres Building Supply, Stayton, Or., has retired after 35 years with the firm. His son, Dan Goodman, succeeds him.

Ed Paul, EelRiver Lumber Sales, Red Crest, Ca., is back after a four-day fishingtrip to Cabo San Lucas, Mexico. Randy Hayden, LouisianaPacific, Samoa, Ca.; Mike Stone, Golden State Lumber Co., San Rafael, Ca.; Al Stockton, San Bruno Lumber Co., San Bruno, Ca., and Rick Bleifuss and Steve Burdick, Compass Lumber Products, Danville, Ca., were also on the Compass Lumber- sponsored trip.

Ed Gilson, Seattle Door Co., Kirkland, Wa., has retired after 37 years in the business. Randy Stump succeeds him as purchasing agent.

Rick DeMarco hasopened Mackinaw Lumber Sales, Bend, Or. John DeMarco Sr. is also with the co.

Dale Johnson is new to LJB Lumber Sales, Tigard, Or.

Frank Pearson has been named gen. mgr. of Kinzua Corp., Heppner, Or.

Bob Cash has joined the plywood sales force at Hearin Forest Industries, Portland, Or.

Jim DiMatteo has joined California Sugar & Western Pine Agency, Redwood City, Ca.

March 1988

Joe Shipman, Navajo Forest Products Industries, Navajo, N.M., has been on a So. Ca. business trip.

Charlie Moss has been promoted to national sales mgr. for the commercial lumber products div. of P&M Cedar Products, Stockton, Ca. Vic Hadley is now commercial lumber sales/production administrator.

Bill Cross is now exec. v.p. of the Pacific Northwest Hardware & lmplement Association. Portland, Or.

Bob Hemsley has been named plant mgr. of the creative laminating div. at Goldenberg Plywood & Lumber Co., Los Angeles, Ca.

Alex Krauss, Barnett Co., Denver, Co., has retired after 4l years with the firm.

Steve Shudoma has joined the sales force at Capital Lumber Co., Chino, Ca., according to Jack Butler.

Lyle Burnett is the new mgr. of lumber development for Trus Joist, Boise, Id.

Steve Kagel is new to OSB sales at Louisiana-Pacific, Mission Viejo, Ca.

Patrick Custer isnow in sales at Siskiyou Forest Products, Woodland, Ca.

Sheila Miklos, Bonnie Sawyer and Thom Wright have joined the trading staff at Washington Pacific, Portland, Or.

Fritz Gaughan is a new salesman forAiken-Ford Lumber Co., Eugene, Or.

Orley H. Anderson, v.p. of trade sales, The O'Brien Corp., San Francisco, Ca., has retired after 32 years with the firm, according to Jerome J. Crowley Jr., pres.

Frank N. Youngman, distribution center mgr., Georgia-Pacific Corp., has been elected pres. of the San Diego Lumber & Wood Products Association, SanDiego, Ca. Ron Lauderbach, Ransom Lumber Sales, v.p.l G. T. Frost, Frost Hardwood Lumber Co., treas.

David Adrien hasbeen promoted to v.p. and treated lumber dept. head at Furman Lumber, according to Hawk Furman, pres. and c.o.o. Richard Viola is also a new v.p.

Vern Sumner, salesman, Hirt & Wood Lumber Co., Eugene, Or., will retire in April after 40 years in the industry, the last six with Hirt & Wood, according to Frank Jason, mgr. and senior v.p.

R. F. Mullan has been appointed exec. v.p. of the American lnstitute o[Timber Construction, Vancouver, Wa., according to Ted Weir, pres. Thomas G. Williamson is now v.p. of technical services.

Edwin W. Spencer, chairman of the board, Honeywell Inc., has been elected to the board of directors of Boise Cascade Corp., Boise, ld.

EdNolte has been named sales mgr. of Fort Vancouver Plywood Co., Vancouver, Wa.

Mary Hannafin has been promoted to national accounts mgr. of Schlage LockCo., San Francisco, Ca.

Dave Bufe, Mesa Forest Products, Costa Mesa. Ca.. is back after a Lake Tahoe ski-trip vacation.

Thomas A. Jones has joined R&G Sloane Manufacturing Co., Inc., Sun Valley, Ca., as pres.

Jackie Sanderson hasbeen appointed marketing assistant for the Simpson Door Co.. McCleary Wa., according to Del Orren, gen. mgr.

Dick Beckman, mgr., Blakely & Hout Home Center, Chehalis, Wa., has been petitioning Washington legislators to let small businesses negotiate their own employee benefits.

Cal Gary is back from the Winter Olympics in Canada after representing Mungus-Fungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

Call (714) 852-1990

Are You Absolutely Sure You Are Buying Your Building Materials Right?

If you have ever asked yourself - Am I Competitive? or Am I obsolutely sure I buy my Buitding Materials and Hardwore rightZ Then you need C.B.S.-Central Builders Supplies Company.

C.B.S. can rake the guesswork out of buying. Since 1937, C.B.S. has been helping independent building material dealers remain competitive with mammoth corporation chains. Because C.B.S. is a dealer owned non-profit corporation, all discounts, rebates, datings and advertising funds are all passed directly to the participating members.

C.B.S. Offers You

*C.B.S. has been nationally recognized as "The Ploce To Go To Buy Low"*

* As you buy more the cost to belong goes down-not up

* C.B.S. has an in-house Lumber Department

* C.B.S. has a General Building Materials Dept.

* C.B.S. has a program with the Blue Grass Tool Company

Central Builders Supplies Company

215 Broadus Street Sturgis, Michigan 49091

Phone: (616) 651-1455

These Advantages

* C.B.S. is dealer orvned

* C.B.S. has a state-of-the-art internal communication system with participating members

* C.B.S. Rebates are paid to the members in cash

* C.B.S. has an in-house Building Specialties Dept.

* C.B.S. operates as a non-profit company

* C.B.S. members share in the cost to operate

Headquorler.t.l0r lhe Allied Building Centers

*C.B.S. was featured in the December, 1986 edition of The Merchant Magazine

Ghange Ahead For Wholesaler

Aggressive restructuring will take place in the wholesale distribution industry in the next l0 years as firms make fundamental changes to capitalize on new market conditions and technology.

Although the number of wholesale distribution firms will decrease due to mergers and acquisitions, the percentage of total wholesale trade sales will increase. In addition. a study conducted for the Distribution Research and Education Foundation, Washington, D.C., identifies four major forces of change. These are market, technological, financial and organizational.

In the market, merchant whole- saler-distributors are expected to extend their share in the wholesale trade channel. They are expected to increase sales through marketing activities such as direct mail, catalog sales, backward integration into manufacturing processes and forward integration into retailing activities.

Technology will increase costs of sales almost double by 1995 from 1.60/o Io 3010. Use of personal computers will more than double with expenditures for scanning equipment, telemarketing and vendor/ customer links increasing. Nearly half of all the transactions in 1995 will use the computer. Purchases made by automated systems will more than triple to almost half the purchases made. Barcoding and scanning will increase as will warehouse mechanization.

Working capital will be made more productive by improved asset management and increases in inventory turnover. More assets will be invested in fixed assets to improve productivity. While gross margins will flatten and even decline in some commodity lines, pre-tax income will increase because of improved productivity.

Capital needs will be met from external sources as opposed to retained earnings. Foreign and domestic investment and other types of outside financing will increase while bank financing will decline.

Inside sales forces will increase significantly with both inside and outside salespeople taking on more marketing and promotion. There will be less order taking and servicing of existing customers as these functions areaccomplished by computer.

Foreign owned and publicly-held wholesaler-distributors will increase to account for about a third of the firms with approximately half of the sales. More ceos will be non-owners from outside the owner's family. They will be younger and retire earlier. Their functions will tend to strategic planning, marketing and technology rather than sales and daily functional tasks.

Competitive pay with incentive compensation will prevail. No skill shortages are expectec.

March 1988

G-P Plans To Buy American

Georgia-Pacific has signed a letter of intent to purchase American Forest Products, based in Martell and Foresthill. Ca.. for an undisclosed amount.

The sale would include American Forest Products' sawmill, particleboard plant, and moulding and millwork plant in Martell; sawmill in Foresthill; 125,000 acres of timberlands, and related equipment, according to Paul Jorgensen.

Details are expected to be finalized by early March, said Jorgensen.

Molded Door Market Growth

According to a survey conducted by Masonite Corp. among 3,250 builders and 95 door distributors, 1988 should continue to be a growth year for molded door sales.

"Even in what forecasters say will be a relatively flat or slightly declining housing market, independent door manufacturers can continue to gain share by utilizing new designs to builders and homeowners," said Dick Hinz, Masonite's director of marketing.

In 1987, 57o/o of those home builders surveyed indicated that they use molded doors as a standard feature in their homes. Molded doors were used by 490/o as a standard feature in 1986.

Molded doors have always been more popular in new construction. While this trend will continue, the number of molded doors purchased for the repair and remodeling market is projected by Masonite to gain seven share points from 1987 to 1992. Currently molded doors represent 10.9% of the totaldoors used in residential repair and remodeling. By 1992 we project usage to represent l8o/0.

Additionally, the survey showed that only 60/o of hardboard molded interior doors soldwerestained compared to 79oh of wood stile and rail doors.

Arizona's Ray Lumber Closes

Ray Lumber Co., Glendale, Az., is liquidating its assets as it seeks a new business plan.

Founded in 1946 by Charley Ray, the lumber wholesaler has closed its yard, truss plant and door plant, according to Bill Ray, president and c.e.o.

Former principal Mike Ray and manager Paul Conley are no longer involved in the company, according to Bill Ray.

Springfield, 0r.

From cutting a wedge to pre-fab'd crane pads or mine shafts. Angle cut, cross cut, drilling, dapping-We'll do them all to customer specification.

Mt. States Credit Policy

The retail lumber industry serves as a bank to the construction industry with residential construction accounting for 64.70/o of the total credit extended.

This conclusion is a result of the analysis of 135 questionnaires on credit management practices sent by the Mountain States Lumber & Building Material Dealers Association to retailers within its five state region. Approximately 160 retail lumber yards with retail sales totaling $606,366,000 are represented in the survey report. The number of yards and total sales were nearly equally split between urban and rural locations with 8l% of the sales total representing credit sales.

Summarizing general credit policies, 85% reported that they invoice at point of sale with 79o/o billing monthly, 50/o billing daily, 2% weekly, 20/o bi-monthly and 120/o using a combination. Credit terms of "net due on the l0th" with no discount for early payment are used by over half of the companies and account for more than half of the total dollars of credit offered.

Of the companies reporting, 920lo said they assessed a finance charge on unpaid balances due beyond 30 days. Only 160/o cut offcredit after 30 days; l0o/o varied between 30 and 60 days,depending upon the customer; 380/o cut off credit after 60 days and

I l% vary between 60 and 90 days; 60/o cut off credit after 90 days with the balance using other cut off procedures.

A formal credit application is required by 930/o of the firms represented. Personal guarantees are required by 560/0.

More than two thirds of the companies had filed intents to file liens.

Over all, 1,158 "intents" were filed against $493,402,800 in credit sales. The number of liens filed varies considerably from state to state with Utah and New Mexico retailers being the most likely to file a lien. Smaller yards tend to use liens less than larger ones.

Of the firms reporting, T2o/o have a designated credit manager. Only 18% have credit managers who spend more than 50% of their time on credit. Only 20.580/o of the owners serve as credit managers. Less than half of the firms are afliliated with a credit organization or network.

Poor judgement in assessingthe credit capability of customers coupled with the weakness of the legal system in the collection of bad debts is considered by most respondents to bethe biggest problems facing the industry with regards to credit management.

Construction Decline Seen

Steep drops in office and other commercial building, plus gentler declines in housing and public works projects, will reduce total 1988 construction contracting to $246.2 billion, a 4olo decline.

"Since October, consumer confidence has been shaken, federal budgetary restraint has been tightened, and expectations for the economy's growth in 1988 have been lowered," according to George A. Christie. of McGraw-Hill Information Systems Co.

"On balance, this mixture of favorable and unfavorable developments does not pose a serious threat."

Eurodesign In Kitchen Defined

Eurodesign is the latest word in kitchen design' but not everyone is sure of its meaning although designers say it will be hot through the 1990s.

Frequently it is used to describe a kitchen with elegant cabinets, appliances, fixtures and fittings engineered to be totally functional. Eurodesign follows the European living style of putting more emphasis on presentation and functionality. In Europe cabinets are considered a one-time purchase, moved from houseto house with the family like fine furniture.

Eurodesign also demonstrates how every inch of space can be carefully used so that the storage potential of the kitchen is maximized. Cutting boards that are hiddenon top of cutlery trays and waste baskets mounted to the back of a cabinet door are examples of how unused space is put to work.

Interior storage aids such as wine racks and bread boxes are built into Eurodesign cabinets as are shelves that roll out to the userandsliding plastic containers suspended from the underside of wall cabinets.

New Walls Are A Cool Deal

Wall panels that absorb heat when room temperatures rise above a certain level, storing it to release the heat when temperatures fall below a certain level are being developed.

Researchers at the U'S' Energy Department's Solar Energy Research Institute, Golden, Co., are creating wall panels, ceiling tiles and other construction materials that would use crystalline hydrocarbons classed as solidstate phase-change materials to help cut air-conditioning and heating costs.

Ghinese Launch Oak Into Space

After researching a number of materials, the Chinese chose to construct their satellite re-entry heat shields of oak, accordingto Aviation Week & Space Technology.

The Chinese People's Liberation Army used oak in its nine recoverable military reconnaissance/Earth resources satellites after discovering "that for this type of spacecraft, a thick layer of oak worked well to char and dissipate the heat associated with re-entry," according to the journal.

Deduct Additions For The Disabled

Dealers remodeling their stores or yards to improve access for physically handicapped customers can deduct up to $35,000 a year to cover the costs.

Information on tax breaks from such changes as widening doorways, adding ramps and modifying vehicles is available from PVA, Section 190 Program, 801 l8th St. NW, Washington, D.C. 20006.