Volcano's effect on timberlands

Devastation of access roads is complicated by nrassive nrudflows and debris-clogged rivers. The Columbia River's deepwater shipping channel was closed to traffic by mud from the eruption. Vancouver and Kalama, Wa., and Portland, Or.. the three largest river ports. were forced to close, stranding sh i ps.

Sfory at a Glance

Mt. St. Helens blowup. tree farms devastated. forest transporta- tion crippled. ash and power outages close mills.

Weyerhaeuser Co. spokesnren report that it will be several weeks before final damage figures are available. Although SEC regula- tions prohibit their making a dollar estinrate, it is known that 19.000 acres of trees in the St. Helens tree farm were felled by the blast. One of twelve U.S. tree farnrs nraintained by Weyerhaeuser, this represents about 401, of their nrerchantable tinrber. Their greatest concern, a spokesnran enrphasized, is getting the transportation systenl rebuilt. They stressed that Weyerhaeuser production and product flow would not be affected.

With six nrillion acres of land. the company has been exposed to ntany hazards including floods and hurricanes. an official explains, but never anything as dranratic as the Mt. St. Helens perfornrance. With three hours of warning, evacuation was possible with loss of life avoided because it was a Sunday and only a handlul ofsccurity people were on duty. If the woods had been full of workers, it probably

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CHUCK LINK executive director

This is what we heard: o Building permits are down approximately 62Vo for the first three months of this year. o Only 5Vo of the first home buyers can quality for the average size home costing $68,000. o Long term interest rates are going to come down slowly. Short term rates will come down a little faster. o First quarter of l98l may see a pick up in housing starts. o There will be an even ereater back los of housins needs. The 1974-75 crunch sh-orted housine units needed bv t million units. The- 1980 crunch wi[l add to this demand by an even greater amount. o We are going to be faced with a serious problem of who is going to get the housing, supplies to meet the demand, and the ability to produce an affordable house. o Long term mortgage lenders will be going to variable, rollover mortgages with a renegotiated rate every three or five years. o Houses will be smaller, more energy efficient and less frills. There will be much more common wall construction with increased density on the ground.

Home building for this year will be dependent on monetary policies already in place. It's going to get worse before it gets better.

. Housins starts for balance of 80's should be a6out 2,100,000 per year (excluding mobile homes).

Here are ideas for 1980

Business Management: Reduce inventory. Cut expenses, labor. Secure any not-collectable property. Collect all accounts receivable possible. Pay off the bank. Save cash. Use local warehouses. Reduce direct purchases. Initiate delivery/stop charges. Reduce duplicate product lines. Don't add new charge accounts. Improve inventory management. Raise finance charses.

Community/Coisumer hojects: Co- sponsor with chamber of commerce a forum focusing on housing conditions in your area. Conduct in-store clinics on d-i-v projects. Do public service announcel ments on conserving energy. Provide list of qualified contractors for remodeling.

Ask newspaper to do special Home Improvement Issue. Form coalition of housing-related firms to develop statistics; keep up to date on business conditions of allied companies. Use coalition to study innovative financing; maintain contact with media: meet with FHA. Farmers Home, VA on possible programs available.

Marketing, Promotion: Train employees to sell retail. Go after commercial market. Use audio visual programs on "how-to" for d-i-y. Truck sales, tent sales, unload and reduce slow moving items. Advertise on consistent basis. Door-to-door promotions.

Lay-a-way plan. Provide incentives to employees for ideas, cost saving, innovations. Promote availability of craftsmen to do add-on, remodeling jobs. Track location of customers to pinpoint special promotions. Use manufacturers' co-op monies for advertising campaigns.

Here are some ad-ditional ideas: Simple housekeeping chores are the cheapest to accomplish, yet often the greatest moneysavers. Clean up the yard and equipment. Add paint where it's needed. Have the clerks dust the shelves and return small items to the correct bins.

Check bad accounts. Let WBMA sponsored I.C. System Collection Service work on them.