IHPA meeting acts on import controls

IMPORTED Hardwood Products

IAssociation members and Indonesia market representatives reached accord

Story at a Glance

tndonesia killi proposed ship ping control...ban on veneer exports postponed...Chile and Papua New Guinea exhibit lor first time...C.W. Robinson installed as president.

on two important points as a result of talks at the annual IHPA convention in Palm Springs, Ca.

Over the past few months IHPA representatives have been working closely with RpxINoo and the Indonesian Joint Marketing Body representatives regarding proposed changes in sales terms. On March 15. following the Feb. 25 - March I meeting, IHPA headquarters in Alexandria, Va., received from Karsudjono S., president-executive of APKINDO, a telex confirming that each mill will be allowed to determine its own terms of sale, either FOB or cost and freight. For those choosing FOB terms, the shipper will have the option of determining the vessel.

This communication cancelled a proposed decree that as of April I all hardwood exports from Indonesia would be shipped on a cost and freight basis rather than free-on-board as often had been the practice. The rescinding of this will allow importers the freedom to choose the ocean carrier and maintain control of the cargo and prevention of damage to the product.

The second decision resultins from the convention postponed indefi nitely a ban on veneer exports from Indonesia. As a result of Suresh Srivastava, chairman, and other members of the IHPA veneer committee meeting with representatives of the Indonesian delegation led by Gani Abu, ministry of forestry, clarification of regulations on the export of veneer was achieved.

In brief, a strict export ban will be imposed on all veneers with a moisture content of more than l29o; up to 20Vo of the total shipments of a mill can be facelback veneer of standard sizes and varieties; export of slice veneer of more exotic woods such as ebony, sonokeling and sonokembang as well as special utilization of veneer of lesser known varieties will be encouraged; 2-ply plywood blanks export will be permitted.

In other business conducted during the convention, C. W. Robinson, chairman and c.e.o. of Robinson Lumber Co., New Orleans, La., was installed as president. Harry Buckley, Pat Brown Lumber Co., Rowayton, Ct., is the new senior vice president and president elect; L. Russell Haan, Plywood Panels, Inc., New Orleans, treasurer.

Regional vice presidents are Keith Johnson, Tumac Lumber Co., Inc., Portland, Or., region l; Roy Polatchek, Capital Woods International, Fountain Valley, Ca., region 2; Roy Benton, Overseas Hardwood Co., Mobile, Al., region 3; John Andl, Mitsubishi International Corp., New York, N.Y., region 4; Michael P.

Canadian lmport Testimony

Legislation now before a House committee "provides a valuable opportunity on which to focus debate" on the growing problem of Canadian softwood lumber imports.

In testimony befoie the House Interior Subcommittee on General Oversight, Northwest Power and Forest Management, Scott Shotwell of the National Forest Products Association, said NFPA is not prepared at the present time to endorse this legislation, noting that the United States and Canadian governments are discussing wood products trade at the highest levels.

"We believe the government-togovernment process should be given an appropriate chance to work. The forest industries of both countries are vital to our respective national interESIS.

"Hopefully, these discussions will result in an agreement between the Canadian and United States governments that will resolve the issue to the benefit of all concerned. If not, some members of NFPA believe that congressional action may become necessary."

The bill before the subcommittee. H.R. 1088, sponsored by Subcommittee Chairman James Weaver (D-Or.) and more than 20 other House members, would limit imports of Canadian softwood lumber, siding, shakes and shingles, and particleboard for a five-year period.

Shotwell said Canadian softwood lumber imports are dampening U.S. lumber prices to the point that profits in the wood products industry are virtually non-existent.

Some U.S. industry members, he said, would like to see Congress place effective restraints on these imports "because they believe the provinciallyadministered timber-pricing policies offer an unfair advantage to producers in that country (Canada)."

"We also have members who believe that the free market should determine the level of competition between the two countries." Shotwell said. "Regardless, the entire industry is extremely alarmed over the serious economic conditions facing the industry at a time of strong lumber demand."

H.R. 1088, he said, "underscores the growing concern in the United States over the trade deficit and the high value of the U.S. dollar, and the continued high level of Canadian lumber imports and its effect on the long-term health of our U.S. industry and employment."

Shotwell said NFPA believes that, in the long term, the U.S. forest industry will best succeed by expanding its horizons further into world markets. "We are aggressively seeking greater market access in Japan, in other countries of the Pacific Rim. in Europe, and other parts of the world. However, free trade must also be fair trade, and some of our members believe the Canadian government policies are anything but fair trade."

Plywood Siding Ban Ended

As a result of the American Plywood Association campaign against the ban on the use of plywood siding in Montana, 303 siding can now be used in that state.

Similar bans in effect in Utah and Indiana also have been removed.

Bathrooms

(Continued from page 8) would think to go to a home center for design advice.

However, it might be wise for a retailer to become familiar with one or two reputable remodelers in his market. Perhaps they could work out some sort of referral fee. Sears Roebuck has done this successfully for years with roofing, insulating and other contractors.

Q: Let's talk about small builders/ remodelers. How can retailers meet their needs?

The best way, obviously, is to have the products they need available within 48 hours at the maximum. And retailers should offer as much variety as possible within a product line. If the product is a tub, offer right and left hand options and an array of colors.

Also, they might offer some sort of discount on packages of materials for any given project and possibly a line of credit. If contractors can get most of what they need in one place they can spend more time on site or selling their skills.

Most successful stores already do these things for their contractor trade because this is what works.

Q: When you tdk about availability, do you think it best to inventory or to rely on special orders?

It's a big issue. But I must say I'm always surprised when I hear about home center chains that build their own 200,000 sq. ft. central warehouses just so they can bypass the wholesalers' slim markups.

Especially with relatively slow-turn, bulky items zuch as bathing fixtures, it makes much better sense to me for a retailer to hook up with a wholesaling firm that has branches near the retail outlets. They could work out a discount structure with the wholesaler and attract a sizeable number of small builders and remodelers with the promise of ready availability while avoiding the headaches of inventory altogether.

Weyerhaeuse/s New Packaging

Weyerhaeuser, one of the world's largest manufacturers of wood products, recently announced the introduction of completely redesigned packaging for all its building materials and wood products. The comprehensive move signifies the company's efforts to convey a more consistent and contemporary look with both retailers and the d-i-y market.

Scheduled to be phased in over the next two years, the new packaging deviates from the traditional wood products company's packaging, according to Bob Moore, vice presidentmarketing for Weyerhaeuser. The design uses a contemporary interpretation of the cross section of a tree. "We want to make the product packaging better reflect the quality of our products," says Moore. "This new design and standardized packaging illustrates the company's commitment to innovation and retailer support."

Additionally, Weyerhaeuser brand identification is strengthened with the company name clearly positioned under each product's name. "Studies have shown that people associate the Weyerhaeuser name with quality," says Moore. "Based on those find- ings, better identification of the Weyerhaeuser name should also benefit retailers. ' '

Support for the retailer was one of the major reasons for developing the products'new look. "Retailers are becoming more and more conscious of projecting a quality image within the store," says Moore. "They're not just trying to sell products to the builders and remodelers anymore." Today, with the large d-i-y market comprising a major part of a retailer's customers, packaging has become even more important. Surveys show that attractive packaging improves shelf appearance and sells the product better while enhancing the store's high-quality image.

Simpson Updates Panel Div.

Simpson Timber Co. has announced a major investment in the panel products division with a $40 million capital restructuring involving a substantial dollar investment for new equipment and facilities for the manufacturing of overlaid panel products. The panel plant at McCleary, Wa., will be closed at the end of the year with all functions transferred to an improved plant facility at Shelton, Wa. Operations will continue at the Al- bany, Or., overlay panel manufacturing plant and the Oregon Overlays Division at Portland which treats the overlay papers. Research and testing of overlays to meet specific end use market requirements are conducted at the Simpson Technical Center in Shelton.

The move underlines an increased commitment by Simpson to remain the leading manufacturer of overlaid panel products in the nation. The plant consolidation is designed to improve quality control, provide greater marketing flexibility, and increase efficiency.

Thomas R. Ingham, Jr., vice president of Northwest Operations, has named Larry Fleming to the newly created position of general managerpanel products. Fleming will be responsible for all phases of the company's panel business including product development, manufacturing and marketing.

Reporting to him will be Bob Hanson, manager Northwest plywood operations; John White, market manager, panel products; Frank Arnold, division manager, Oregon Overlays, and Dr. Reinhard Bohme. who recently replaced John Could