WESlIERN ASS0C[ATl[0N NEWS

Western Building Material Association is offering suggestions on how to pay employees for their expenses. They report that since July I , | 990, employers who reimburse employees for business expenses without requiring them to account for those expenditures (nonaccountable plan) have encountered added paperwork such as withholding taxes on the reimbursements from the paychecks of affected employees.

Although nonaccountable expense allowances have been taxable for some time, income and payroll taxes have had to be withheld only since July l. An alternative is for the employer to demand an accounting of employees' business spending (where, when, how much and lor what business purpose) and require repayment of any unexpended advances. With this, there is no witholding requirement.

The association recommends pointing out to employees who object to hav- ing additional taxes withheld from their pay that without it, they would have to pay the taxes directly on nonaccountable reimbursements and in offsetting them by deducting their actual cost as miscellaneous expenses would have to exclude 2olo ol adjusted gross income.

WBMA also is recommending to dealers the language suggested for employment applications by NLBMDA attorneys. That language is: I certily that the informotion contained in this application is correct to the best of my knowledge. In consideration of my employment, I agree to abide by the rules and regulations of the company, and I understond that these rules and regulations and any personnel manual does not constitute a rcntract of employment. I understand that my employment and compensation can be terminated, v)ith or v)ithout cause and with or without notice at any time, at the option ol either the company or mysel/. I.further understand that no supervisor or reprcsentative o/ the company, other than qnsert name ol'individual or title) has any authority to enter in any agreement ,fbr employment .fbr any speci/ied period e/ time, or to make any agreement conl rary to t he,foregoing.

Crr,or"r, tell us that the consistent quality of the products we make is what keeps them coming back. For more than 40 years they have relied on Sequoia Forest Industries to ensure the lengths and widths are as ordered with no hassles about orade. Our precision cutting standards are the highest in the industry. And our Fresno location means fast, over-night deliveries to maJor California markets.

Job site deliveries when requested.

The association is advising members of steps to take when business slows. Dbn't slash expenses across the board is the first recommendation. If a recession hits, some owners immediately announce a company wide hiring f,reeze or a l0% spending cutback. But that strategy always cuts too much in some areas and not enough in others.

Use the downturn to refocus your company's energies. A recession is the ideal time to get people's attention and to make changes to eliminate inefTiciencies and streamline the company.

If you have to eliminate people, do it quickly. When you act fast and get the dirty work over, your remaining employees are happier and more highly motivated. They feel they can get on with the job.

Spend more time with customers. It's tempting to slash travel budgets or eliminate business entertainment. But those short term savings could spell disaster later. Customers have long memories. They remember those who served them well when times get tough.

Don't indiscriminately reduce inventory. You need products to sell. Maintenance of stock and service is important in tough times or customers will go elsewhere.

Spend more on advertising and training, not less. When recessions strike, budgets lor advertising and employee training are often dealt the biggest blows.

S"qroiu manufactures Ponderosa and Sugar pine in 5/4 and 6/4, White fi 2x4 and 2x6, and long-lasting Incense cedar. We are the Iargest producer of pallets in the stateover 6.000 each dav. We even make decorative bark and forest humus.

A broad range of quality productsthat's today's Sequoia Forest Industries.

Tom Peters says that's dead wrong. The success or lailure of most companies is directly tied to the perceived quality of the products they sell or the services they provide. Maintaining or enhancing your image has never been so important.

Mountain States Lumber and Building Material Dealers Association's leading f)enver lumber dealers participated in a "How to Profit in an Improving Economy" session recently.

Facilitated by executive vice president Fred Caruso, the session touched on stages of the economic cycle and how business practices relate to the bottom line.

The group developed lists ol both detrimental and profitable practices for economic leveling-off periods. They concluded that dealers should be concerned with management practices to keep ahead of the ever changing market.

Economic Negatives o Opening new yards was easy in the late 1970s and early 1980s, creating a saturated economy. o Business managers' attitudes went down with the economy, making the situation worse. o Dealers did not look at their management practices, resulting in their accepting "bad business" customers. o Lack ol confidence, on the part of many, necessary to enforce good practices. o Competitive bidding by contractors caused panic, resulting in lower margins area-wide. o Many dealers operated on the '70s margin numbers, when lumber prices were higher, causing their businesses to be undermined when prices dropped.

. Dealers budgeting to sales volume rather than return on investment. resulting in some companies selling themselves out ol business.

. Too many big notes and "leverage" place some businesses in financial trouble.

Economic Positives o Be keenly aware of costs. o Keep assets and receivables in line. o Keep credit management tight. o Work off today's numbers. o Base selling on value and service per dollar. o Bigger is not necessarily better. "Growth" may be going into a period like the '30s. Do not count on infla- tionary growth to compensate for lack of managemedt skill. o Businesses should have a plan for keeping earned discounts instead of giving them away. o Weed out the customer base. Some customers are bad for business.

. Re-examine old concepts of "bundled services" in relation to margins.

'. Adopt an intelligent strategy in quoting jobs.

. Recognize that it "costs a lot to go to war," weigh emotional reaction to competition carefully. Avoid the tendency to get back to "lat and happy."

Thql's How lt Goes!

"My husband is the original 'do-ityourself" man . ask him to /ix something and he says, 'Do it yoursell. "'

U.S. Struggles to Grack Canadian Trade Barrier

The U.S. Administration and members of Congress are backing the American Plywood Association in efforts to remedy a continuing serious inequity in U.S.-Canada trade.

Canada has yet to comply with

TIMBERS

1988 bilateral agreement to accept U.S. certifying agencies, thereby preventing U.S.-certified structural panels being sold in Canada, reported APA.

"The Canadian Free Trade Agreement specifically prr)vides for this acceptance," said APA president William T. Robison. "How- ever, after three years of continued effort, the American Plywood Association has not received accreditation in Canada. The slow pace in the handling of APA's accreditation application has the unmistakable flavor of protectionism."

The U.S. trade representative and commerce secretary have vowed to push the Standards Council of Canada for speedy action.

Dixleline On The Market

Parent company Nortek Inc. has placed 10 unit Dixieline Lumber Co., San Diego, Ca., up for sale.

Nortek is considering a number of potential buyers. "There are a couple of horses in the race," said Dixieline president Bill Cowling, whose father founded the company in 1913. Cowling, who has remained on after the chain's sale to Weyerhaeuser in 1979 and to Nortek in 1985, would prefer to continue under new ownership.

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SE,QUOIASUPPLY o Multiple methods of purchasing from pieces to truckloads, to fit your specific customer service.

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Treating Industry Awaits EPA Compliance Extension

Following negotiations between the EPA and the American Wood Preservers lnstitute, the treating industry was awaiting Federal Register publication of a formal stay of June l99l compliance requirements as The Merchant Magazine went to press.

Following the formal stay notification, a Federal Register notice proposing to modify the rule will be printed on or about July L After a 30 day comment period, a final rule is due to appear in the Federal Register by mid-October.

Softening of the regulations reportedly includes postponing Subpart W compliance dates for new and existing drip pads; removing the F032 listing for waste of pasr chlorphenolic userst and eliminating requirements for an impermeable coating for drip pads designed or built after Dec. 6, 1990, providing the pad is constructed with a suitable liner and leak detection system.

Both AWPI and EPA agree that facilities not intending to comply ought to close sooner rather than later, an AWPI spokesperson said. Therefore, extension will be predicated on written notice of intent by August l99l followed by substantive proof such as financing arrangements by November 1991. Existing pads will likely have to be in compliance by February 19921 new pads built and certified by May 1992. Those unable to meet this time frame, but intent on complying, will probably be able to work out arrangements with state authorities.

In response to the AWPI position that Subpart W drip pad requirements are redundant, EPA apparently has agreed to two options: coating an existing pad plus an annual certification or retrofitting with a liner and leak detection system.

It appears that the EPA will clarify de minimis (lowest level) drippage and allow wood preserving wastes to be labeled according to current preservative usage. The process water/wastewater issue seems to be the only issue not resolved.

600 Hang Up On Phone Cos.

A barrage of letters, phone calls and cancellations from outraged wood products companies is striking two major long distance carriers which recently began largescale promotions benefitting preservationist organizations.

The MCI and U.S. Sprint programs donate a percentage of a customer's bills to his choice from a set list of environmental groups such as the Sierra Club Legal Defense Fund.

(See May 1991, p. 2t)

MCI has received more than 600 letters of protest from the hardwood industry alone, said the National Hardwood Lumber Association. A point of contention is no forestry organizations are among the beneficiaries.

But MCI began meeting with the NHLA May 3l to consider including such multiple use, sustained yield groups. Reportedly, the American Forest Foundation is slated to receive a $25,000 donation, unconfirmed by the foundation.

Sprint refuses to alter its list recipients due to the amount money tied up in its ad program.