HIGHtAlI

Gredit Line

Credit management has not always been conducted with the diplomacy which exists within the profession today.

G. R. Mumby, recently deceased founder of Southern Lumber Co., San Diego, Ca., told of a man who came into his yard a few years ago and asked to charge $200 worth of materials. The customer assured Mumby that he would pay for the materials immediatqly upon completion of his job.

Mumby looked the customer in the eye and asked, "How old are you?'

"Forty-two," the customer replied. "Why do you ask?'

"Well," answered Mumby, "if you can't save $200 in 42 years, how are you going to save that much monev in the next 30 days?"

- Ron Lauderbach Ransom Bros. Lumber & Supply San Diego, Ca.

Fireproof Cedar Guaranteed

After becoming the frst fire retardant treater in the history of the red cedar shake and shingle industry to successfully complete a demanding series of weathering and fire tests, Chemco, Inc., Ferndale, Wa., has introduced a limited lifetime warranty for the fire retardance of their FTX Eeated shakes and shingles.

It represents the frst cedar industry waranty that covers the actual fre retardant process, assuring that the fre retardant chemical in the wood will not weather away over time and will remain effective for the life of the roof.

The products passed the full 10 year weathering/fire testing protocol of the Standard Methods of Fire Tests of Roof Coverings for both Class B and Class C red cedar shake and shingle roof systems. The successful tests were perfomrcd in late 1992at the UL and ICBO approved Weyerhaeuser Fire Technology Laboratory, Longview. Wa.

Currently, Chemco's fire retardant treated shakes and shingles are the only products which qualify to carry the Cedar Shake & Shingle Bureau's Certi-Guard label.

Burns Lumber To Oregon

Burns Lumber Co., a pioneer wholesaler in Southern California, is moving from Van Nuys to Medford, Or. The move will be completed by July l.

The 67-year-old firm will continue serving its traditional market area of Southern California and the Southwestern United States. The company anticipates no disruption of service to its customers. Burns deals solely in commodity lumber, 80Vo of. which is shipped to their distribution center at Berth 200, Wilnington, Ca., via ocean barge and rail. Sales last year were M0 million.

"Strategically, we feel it is better to be closer to our sources, and we are anticipating an increase in sales of l5Vo to 20Vo in 1993, Bill Perkins, president, said. He also noted the rising cost of doing business in California, the anti-business climate and lower operating costs in Oregon. Telephone numbers for Burns are not expected to change as a result of the move.

The firm was originally Burns Lumber & Steamship Co. and is believed to be the original cargo shipper into Southern California.

New Realities Ghallenge Wholesale Distribution Today

Between today and the year 2000, the wholesale distribution industry faces tle most challenging period in its history. The outlook for the industry has changed radically, according to Patrick Dolan, Arthur Andersen Co.

A recent study by his company shows a fundamental disagreement between wholesaler-distributors and manufacturers on future trends and their relationship in the distribution channel. Another significant change exists in leveraging which is now thought to be too high, with returns too low to atEactnew capital.

The maturing of the U.S. economy forced extensive changes such as consolidation, shrinking margins in some commodity lines and declining profitability on the wholesale distribution industry in late 1980s and early 1990s. Some companies are tlriving, many are struggling, others are on the verge of failure.

Many companies have seen rela- tionships with manufacturers deteriorate to dangerous levels. Some distributors have improved productivity, but failed to adopt technology and quality movements. Many have not taken new channels of competition such as warehouse clubs seriously. Significant excess c.apaclty exists in the industry, according t0 Dolan.

Because the changing business climate undermines assumptions wholesaler-disributors have operated under, companies must base decisions on new

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PACIFIC FOREST PKODUCTS, INC.

lnstitute Fosters Management

Wood products produced with ecologically and economically sustainable forest management are the goal of the Rogue Institute for Ecology and Economy, Ashland, Or.

Launched by monitoring approximately 120 acres of timber in accor- dance with its Community Forestry Certification Program, the program evaluates both the ecological impact of proposed forest management and the way workers and communities are treated in the process. To be certified, a land management plan must prove the harvest will sustain both the forest

The Merchant Magazine ecosystem and the local community over the long-tefln.

"Ultimately the consumer will dictate whether we can change the way foresB are managed. With this harvest those who use wood products will have the opportunity to support both ecologically and economically sustainable forest managemenl lt's time they have a choice," project coordinator Jim Worlonan said.

Rogue Institute direcor Brett KenCairn called the program an invitation to consumers to join forest workers and communities in fostering a new approach to stewardship by supporting forest management that ensures economic, aesthetic and ecological benefits for future generations.

Oak Use Declines At Market

Cherry and pine use increased to 13.47o and 9.97o rcspectively in the January Western Furniture Market in San Francisco, Ca., gaining over oak which dropped to 37 Vo from 4l.l%o. Alder, maple and birch use grew to 57o. Mahogany dropped from7.4Vo to 67o. Walnut ranked at 2.4Vo, pecanhickory, l.2Vo, burls, 5.44o.