Hardwood wholesalers' annual gathering

IIHE Pacific Coast Wholesale

I Hardwood Distributors Association has addressed a number of changing market practices since its founding in 192A.

This year the so-called blending or mixing of different grades in one order was the topic for considerable discussion at the group's 62nd annual convention, held in Scottsdale, Az.

In a conscious effort to have an impact on market conditions and, not incidentally, to send a message as well to the National Hardwood Lumber Association as to their views on the practice, the PCWHDA resolved that (l) All lumber will be sold on a net footage count. Ifthere is to be a percentage added for kiln drying,/shrinkage, that percentage shall be added to the price of the lumber and not to the footage.

It makes no difference how the lumber was purchased, whether it was measured before kiln drying or after or whether it comes directly from a kiln that does not have the means to measure lumber. It applies to all sales whether it is a direct car or truck and trailer or out of warehouse.

It is the seller's responsibility to sell all lumber on a net footage count and add the kiln shrinkage to the price and not the footage.

(2) All lumber sold shall be on the NHLA grades and rules.

No grades of lumber shall be blended or mixed in the same load unless they are identified by the lowest grade, such as #2 common and better.

If the customer wants a percent- age of one grade and a lower percentage of a lesser grade, it shall be measured, graded and packaged separately.

It is the seller's responsibility to see that all lumber is packaged and sold separately and to show on his invoice.

A rundown on business conditions across the West was next presented by various members. President Dick Gray reported that Hawaii looked as if it would have another so-so year. Lyall Bell noted that Canada continued to suffer from weak business conditions. Jack Butson said that Washington state was enjoying some pickup from depressed 1984, but that competition was intense and credit a problem. Werner Richen echoed that the credit problem situation applied equally for Oregon, but that more union "giveups" in wage demands were expected.

Joe Long said that in Northern California volume and profits had been steady, adding that apprehension was increasing as state government agencies had stepped up regulatory activity in the areas of weights and measures and underground water control. Pete Bower observed that Southern California had experienced more growth, that competition had increased as more firms entered hardwood distribution and profit margins had dropped. Lynn Monthaven agreed with

Story at a Glance

Resolution stating group's po. sition on mixing of grades in one order read into the record... martet condations lrom across the West reviewed...Werner Richen elected new president.

Bower on the increasing competitiveness in the Los Angeles metro market, adding that milling was very competitive, that grade mixing was a problem (see above resolution) and that the cabinet end ofthe business was steady. Bruce Frost described San Diego as enjoying a long-awaited surge in business, stable labor conditions and credit losses proportional to the amount of business done.

Brent Mullen concluded the reports noting light inventory positions, fewer in-state credit problems due to a new Arizona law to jail certain creditors and a general feeling that 1985 would be another good year in his state.

Banker Bob Mathews of The Arizona Bank then spoke on state business conditions, observing that 1985 will be a good year, but not as good as the two previous years. He warned of overbuilding and forecast a small decline in housing starts, though it will still leave the desert state with the third highest pace of starts in the country. Mathews said that for the first time since the 1930s, disinflation was creating a problem with mort- gages and that foreclosures had increased noticeably.

OUTG()ING PRESIDENT (1) Dick Gray, John Mullen, banker Bob Mathews, a convention speaker. (2) Maris Gray, Kay Bell, Sylvia Richen. (3) Carl Patterson. (4) John & Ella Fahs with daughter Leslie. (5) Butch Pope, Joe Long. (6) Anne and Lynn Monthaven, Dorothy Reel (behind camera) and Don Reel, Sue Spellman, Shirley Reel. (7) Ruth, Brent & Judy Mullen. (8) Cathy Frost, Betzy Baker, Liz Baker. (9) Bill MacBeath, Harry Anthony and Joanie. (10) Loretta Patterson, Marilyn Pooe.

The next speaker was David Cutler, editor-publisher of The Merchant Magazine, who reviewed the increasing practice of mills and manufacturers selling direct to retailers and others, by-passing the normal distribution pattern involving the wholesaler and distributor. He said that the magazine's market spot checking had indicated that many in the industry expect more direct selling, not less in the future.

(Coritinued from page 29) need a two months' advance notice, so it is important for dealers interested in sponsoring seminars to select their tentative meeting dates and mail their requests to NLBMDA promptly," suggests Riolo.

Once a meeting date has been established, arrangements are made by WWPA to furnish a supply of seminar invitations, free of charge, which are custom-printed with the dealer's company name and address. The invitation contains the date. time and location of the meeting, and the registration fee, if any.

The sponsoring dealer is also provided with a "how to " meeting plan guide. The dealer makes the meeting arrangements. The only meeting cost billed by WWPA is the Per person cost for the information binder each registrant receives.

For more information about the seminar, contact Peggy Battle, director of dealer services, National Lumber & Building Material Dealers Association, 40 lvy Street, S.E., Washington, D.C. 20003, telephone (202) 547-2230.

Las Vegas's Tops in Growth

The fastest growing metro area in the United States for the last 30 years has been Las Vegas, Nv.

Ranked second in growth in 1950 by the Census Bureau, it was first in the 1960s and fourth in the 1970s. Fort Collins-Loveland, Co., Olympia, Wa., and Reno, Nv., finished in the top 10.