Hardwood association hits 65

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The association colers both the ,\nrerican \\'est and the Clanadian \\ est rrnd generrrllr hegins its program each l car u ith a scrics of'membcr reports on conclitions in thcir lurcas. 'l'his vclr thcsc Scctional Reports \\crc bcgun br (ircg Ligtrtheart, P.J. ilarduoods. [.tcl.. \'ancouvcr.

ll.('.. who obscrvecl that while bLrsincss was stror.rg. it was ofT slightlr, liorl last _v-ear. I'hc ne\\ North .\nrcrican tracle pact has causecl ('an-

Story at a Glance

Government interference in business is called an increasing problem. economy good in some areas, not in others profit margin squeeze. Bruce Frost elected president. South aclian concern rcgarding hardwood shipnrcnts. he said. llal Kcrrl'. 13rady International. reported lhat cnvironnrentalists were pressuring government on wood dust regulations. The Seattle/Taconra econom!' was described as better than I 98 7 with industrial business strong. The Oregon situation was reprised by'Jim Price, Emerson llardwood. who said they had enjoyed steadi' growth amidst general short ternt optimism. but that grade nrircs have begun to appear.

The Northern ('alifornia scene rras sunrnred up by Joe Long, Iliggins I Iardwood. as one of- increasing intrusion by government upon business. He averred that "we've only seen the start of it." Long said some labor concessions have been made and that 1989 will be weaker than the "good business" of 1988. Substance abuse is an on going problem, he noted.

Orange and Riverside County business was reckoned by Shirley Reel, Reel Lumber Service, to be good despite lower profit margins. She said customers have complained about increased prices and decreased quality.

Lynn Monthaven, Lane Stanton Vance Lumber, sketched a Los Angeles County business picture that was good, with oak still the number one furniture wood. Credit is a problem and some large furniture manufacturers have gone out of business.

The San Diego situation was called generally good by Bruce Frost, Frost Hardwood. He said that OSHA was still pressuring on the amount of formaldehyde in plywood and that "the issue is not going to go away. As an industry, we're in for it." He forecast that the next labor contract

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HARDWOOD WHOLESALERS (Continued from pase 53)

negotiations would be tougher than the last talks.

Concluding the Sectional Reports, Brent Mullen, Southwest Hardwood, described Arizona building as off sharply; commercial construction, for example, is off 360/0, multis are down 560/0. Like other firms, his has been making Material Data Safety Sheet (MSDS) mailings to customers to comply with exacting new federal regulations.

First of the guest speakers at the April 10-12 meeting was S. Carroll "Bill" White, executive v.p., National Hardwood Lumber Association, who described the changeover in NHLA's Hardwood Institute to emphasizing hardwood in construction, rather than furniture, as in the past. White presented his audience with the first copies off the press of an impressive new brochure. NHLA's 44p. "lmagination Within" brochure highlights hardwood usage in a variety of interior and exterior applications.

The next speaker, David Cutler, editor publisher of The Merchant Magazine, described studies that forecast far fewer workers entering the labor force in the 1990s. He suggested some ways to attract and motivate a diminishing supply of new workers.

Final speaker Henry Jones, the new owner of The Hardwood Market Report, told how he is building on the integrity and historical importance ofthe venerable price reporter. He said they have expanded their sources and are presenting prices that reflect a wider scope of the market than ever before.

Resolutions honored two recently deceased members: C.R. Taenzer, American Hardwood, for his 64 years of attendance and participationhe was a founding member in 1921and K.E. "Mac" MacBeath, MacBeath Hardwood, an industry sage whose acumen was honored with the Perpetual "Mac" MacBeath Poker Trophy.

Elected new president was Bruce Frost; lst v.p., Jack Butson; 2nd v.p., Butch Pope; sec.-treasurer, ilARl(ETlllG Executive ol the Year award was oresented to Herb Winward, v.p., sales & marketing, lor Weyerhaeuser's Western Region, at the fourth annual National Home Center Industry Advertising & Marketing Awards ceremony held in conjunction with the National Home Center Show in Chicago.

Brent Mullen, and treasurer-elect, Pete Bower.

This year's annual was held at the new Inn at Spanish Bay, Pebble Beach, Ca. The next gathering is tentatively set for April, 1989, at the Hotel Palmilla, Los Cabos, Baja California, Mexico.

Ways Golorado Yards Survive

What can a lumber dealer do to combat the rough times of weak residential and commercial construction? Colorado firms are retrenching and reacting decisively to new market trends in order to survive.

Old time lumber firms, many of which have been run by the same families for generations, are emphasizing customer service and concentrating on certain market niches.

"lt's become much tougher to compete with Hugh M. Woods and Builder's Square," notes Hast Lumber Co.'s Herb Hast Jr.

The advertising clout of the chains is particularly troublesome to the Commerce City firm started by Hast's father in 1944. Although the company's sales are off400/o from the 1984 peak, Hast said his firm will survive because it did not overleverage itself in good times. "There are still a lot of people who are looking for quality products and service," he added.

Barnett Co.. a full-service lumber company in Denver, has been around since 1919. Promotion of what it says is the area's largest selec- tion of pressure treated lumber is the company's primary way of coping. In addition, they are concentrating on service.

"I believe the key to any business is service," said Mike Goldberg, Barnett's v.p. "We're all selling the same or similar products at competitive prices."

Barnett recently began to accept bank credit cards from do-it-yourself customers. Although their business is about 900/o contractor, they have done this to encourage more retail trade.

"ln the old days, we did not want to pay the bank card companies the 3ol0," Goldberg said.

Nearly 820/o of the lumber yard sales in Colorado last year were on credit, according to the Mountain States Lumber & Building Material Dealers Association.

"Our No. I nemesis is accounts receivables," observes M. L. Strait, who recently retired as president of Strait Lumber Co., Aurora, allowing his son Mark to take over. "Business is awfully slow. We're keeping costs down as much as possible to keep the wheels turning."

The Merchant Magazine

Goldberg agrees with the need to cut back. The work force at Barnett has been cut in halfin the past year. "When sales were good and we were making money, we tended to get fat," he explained. "The question is, when times get good again, will we stay that way."

Centennial Wood Co., Denver, specializes in hardwoods such as red oak, walnut, cherry, ash and maple. This allows them to broaden the customer base to include cabinetmakers and shops that make countertops, display cases and fixtures for commercial use.

"We've been fairly busy," said Bob Bajorek, head ofthe 13 year old firm. "We've had no layoffs. We're real fortunate."

Although they have held on to I I fulltimers and two part time employees, they have made some changes. Deliveries have been expanded, thus expanding sales territory throughout the state.

Fred Caruso, executive vice president at the MSLBMDA, recommends that retailers align with a good remodeling contractor to provide labor along with materials. He also recommends seeking out remodeling trade. Last year about $44.6 billion was spent on remodeling homes in the U.S. "There are 68 million homes in America over 14 years old and 300/o will have some remodeling done in the next l7 months," he said. "Another 380/o will have some remodeling done 17 months to 24 months from now."

New Fire Salvage Plan

Amassive, immediate salvageand-reforestation plan for Northwest forests burned by fire last fall is being promoted by timber industry leaders.

But their proposal far surpasses a U.S. Forest Service plan. Both are criticized by environmentalists.

The industry is preparing a campaign in Oregon to promote their plan and to collect funds to reforest and rehabilitate the scorched timberlands.

But time is not on their side, as the timber could be dead within months. "We need to get in there and salvage those logs," says Roger Cornett, president of Cornett Lum- ber Co., Central Point, Or., and the Southern Oregon Timber Industries Association.

About 43,000 acres of thick stands of centuries-old timber were scorched in a remote, roadless area. The Forest Service plan calls for 20.5 miles of road to be built to log

146 million of the estimated 270 million board feet of burned timber. Logging advocates' "Operation Silver Forest," modeled after aggressive measures taken following fires in the 1930s and 1940s, suggests 30 miles of new road to harvest between 200 and 240 million board feet.