Knowledgeable Sales Staff Increasingly lmportant

More do-it-yourselfers are choosing retailers that staff knowledgeable salespeople, according to the annual American Express Retail Index.

When asked to list the top reasons for choosing a home improvement/ home furnishings retailer, 29Vo cited knowledgeable salespeople, a 6Vo increase from 1997. Fair prices (66Vo), selection (48Vo) and quality merchandise (39Vo)led the list.

The Index monitors retail customer spending and is based on a random national poll of more than 1,000 homeowners.

The study credited a strong economy and stable interest rates for allowing do-ifyourselfers to perform their own home improvements. Of those surveyed, 39Vo revealed they plan on tackling home improvements themselves this year, up 8Vo from 1997. Not surprising, the budget for performing these home improvements registered an increase as well, up 10Vo to $2,929. Over one-third (34Vo) will begin their projects this month.

This year, the most common projects are interior decorating and refurbishing (59Vo), renovation and remod- eling (32V0), landscaping (29Vo), gardening (27Vo), mandatory maintenance (24Vo), exterior decorating work (22Vo), expansion (l4Vo), and restoration (13Vo).

Approximately lSVo of remodelers will refurbish at least one room in the house, with attention shifting away from last year's top room, the living room, to the bedroom (27Eo). The living room came in second at 17Vo.

In the kitchen, 43Vo will install new cabinets, with the majority choosing wood (907o) over any other material. About 6l%o will add new countertops, choosing formica and ceramic tile over Corian and granite surfaces. Nearly half (45Vo) wtll install new appliances, choosing white or almond over trendier colors such as stainless steel and black. Other popular additions include a breakfast table, stools, work center or island, and baker's rack.

Throughout the rest of the house, the majority of d-i-yers are following either a neutral (6OVo) or blue/green (46Vo) color scheme, installing wallto-wall carpeting (24Vo), and adding a variety of lighting accents (25Vo) to a contemporary design theme (317o). An additional l9Vo will add or convert a room into either a home office or home entertainment room.

Plum Creek Into REIT

In a move to finance acquisitions more easily, Plum Creek Timber Co., Seattle, Wa., plans to convert into a real estate investment trust.

While Potlatch and GeorgiaPacific have spun off timberlands into REITs to separate the holdings from other underperforming operations and other competitors are considering similar moves, Plum Creek is reportedly the first timber company proposing to convert the entire firm into such a trust.

Plum Creek, though, has no slumping pulp and paper operations, but is a master limited partnership, a structure with similar tax advantages to a trust but unpopular with mutual funds and pension funds. Becoming a REIT should broaden its appeal to investors and provide the option of using REIT shares, which are more liquid than partnership units, to finance purchases.

Plum Creek. which has been among the more active buyers of forestland, especially in the Southeast, currentlv owns 2.4 million acres.

Tool Sales Push $12 Billion

Demand for power and hand tools should increase 57o annually to $11.9 billion in 2002, forecasts the Freedonia Group.

Low-cost imports from Taiwan and China will continue to take market share away from U.S.-made products in most sectors. Despite the widening trade gap, U.S. producen will still find good export opportunities for certain products, such as electric and gaspowered tools.

Demand for power tools will lead advances, spurred by the introduction of more powerful cordless tools targeting not just consumers, but also professional users. Among power tools, hydraulic and powder-actuated tools will enjoy the strongest gains, followed by electric types.

Serious d-i-yers are expected to purchase more expensive, powerful tools to complete increasingly sophisticated household projects. And, based on their higher technology requirements and greater amenability to innovation, power products are more insulated from pricing competition than are hand tools.

Hand tool demand will trail market averages largely due to product durability and lower average prices. The largest increases will be in the professional market, since the increasing sophistication of many professional tasks will result in more specialized and multi-functional hand tools. Although hand service tools will dominate sales, edge tools will lead sales growth.

Pro users should continue to comprise over two-thirds of the market due to their use of a greater variety of more expensive tools. Above average growth in the industrial sector will offset the decline in housing starts and a deceleration in non-residential outlays.

Consumer tool demand will rise slightly faster than the professional sector, largely due to the popularity of d-i-y activities and trade-up by consumers to more powerful, featureladen power tools,

B.C. Giant Ending Clearcuts

MacMillan Bloedel, Canada's largest timber company, intends to phase out clearcutting in old growth forests over the next five Years.

The company will establish three stewardship zones, which set the intensity of logging, and utilize variable retention harvesting, which protects biodiversity by retaining portions of the original forest in various size stands and clusters.

"At MB, this is the future of forestry," said president Tom Stephens. "It reflects what our customers are telling us about the need for certified products, but equally important, it reflects changing social values and new knowledge about forest ecology."

Buyers Pay Green For Green

Eighteen percent of a select U.S. consumer group would paY 2Vo mote for a new home constructed from environmentally certified wood, according to a new study by Louisiana State University and Lincoln University in New 7*aland

The survey of 800 homeowners with incomes over $30,000 indicated that 4.4Vo to I8.7Vo would pay more for green products, wttrle 377o would not incur any premium.

Abolt 3lVo would pay l07o mote for a $l certified stud, a $100 chair, a $1,000 table and a $5,000 kitchen remodel. Surprisingly, "green sensitivity" increased with more expensive issues (more people were willing to pay the l07o premium on the $5,000 kitchen remodel than on the $l stud).

Synthetic Stucco Fights Back

Hammered by homeowner lawsuits and bad publicity, the Exterior Insulation and Finish System industry is fighting back.

The industry recently won two court battles against owners of waterdamaged homes. Manufacturers admitted there have been some problems with water intrusion in homes with EIFS systems, but traced the problems to poor quality, even noncode compliant-windows and improper flashings and sealings.

Responding to the concerns, several manufacturers have begun designing new systems with specialized drainage channels to allow any moisture to escape to the outside. The industry is also continuing to inform builders on proper installation techmques.

To exploit the perceived problems with EIFS, the competing Southwest Brick Institute recently launched a tv ad campaign attacking BIFS producs. EIFS producers responded with their own series of print ads ("Bricks Don't Stand Up," "Brick Shouldn't Make Cracks").

According to the industry EIFS has grown to over lTVo of the commercial market and more than lOVo of the residential sector.

Hoo-Hoo Conventlon In Gear

Lumber industry fraternity HooHoo International is revving up for is l06th annual convention in the Motor City.

Set for Aug. 9-13 at the Ritz Carlton, Dearborn, Mi., the event will include business meetings, a jurisdictional competition, initiation of officers and banquets, as well as golf, a dinner cruise on the Detroit River, dinner at the historic Eagle Tavern, and tours of Greenfield Village, Henry Ford Museum and the renown Ford Mansion, Fair Lane.

Dealers Become TV Stars

Three westem dealers star in True Value's new "True Stories" tv ad campaign, showing how the stores "go the exta mile."

The first spot features Lowell Peterson, owner of Worland True Value, Worland, Wy., presenting his best customers with an unusual floral arrangement-a bouquet of tools.

Erin Cook, Kitsap True Value

Lumber, Bremerton, Wa., provided another commercial showcasing a customer who likes her cat so much that she wants to paint her walls the color ofher feline, so she presents the store's paint expert with a fur ball so she can mix paint to match it.

Another ad shows Craig Davis, son of the owner of Davis True Value, Flagstaff, Az., who rode home with a customer who was unable to install a faucet properly, then endured a long ride back to the storc, courtesy of the customer's children.

lnnovative Dealers To Meet

Retailers can become even higher tech by attending the National Lumber & Building Material Dealers Association's upcoming annual convention.

Themed "Innovate '98," the event Sept.23-26 at the Rancho Bernardo Inn, San Diego, Ca., will feature hands-on computer demonstrations and seminars on such topics as interactive Web commerce, EDI, estimating software and the Year 2000 Problem.

Martin Powell, Guardian Fiber- glass, will moderate "The Do-It-ForMe Bra: The Independent Dealer & Installed Sales," with panelists Peter Scherer, Scherer Bros. Lumber Co,, Minneapolis, Mn., and Doug Kooyman, Kooyman Lumber, Pella, Ia.; Ruth Kellick-Grubbs, BMA, Greenville, S.C., will moderate "Customer Care," with panelists Bill Stewart, Stewart Lumber , Dickson, Tn.; Jeff Pohle, Southern Lumber, San Jose, Ca., and Kevin Hancock, Hancock Lumber, Casco, Me. Hancock also will moderate "Reinventing Your HR Program," with panelists Deborah Hayden, Tindell's, Knoxville, Tn.; Jim Hershey, Magbee Building Supply, Duluth, Ga., and Patti Williams, Brown Lumber, Traverse City, Mi.

Bruce Merrifield, Merrifield Consulting, will also speak on "Reorganizing Your Company Around the Customer," while Jack Nunn, Construction Marketing Associates, will address "Critical Profit Variables & The Profitability Index."

Other activities include banquets, a vendors showcase, golf tournament, and sidenips to La fo[a, the Wild Animal Park, a winery and sportfishing.

More Do-lt-Herselfers

About 78% of Ace Hardware dealers recently polled say more women are shopping at their stores today than five years ago. Of this group,56Vo reported a dramatic increase.

According to the survey, more than threequarten of the retailers atEibute the rise to increased interest among women in d-i-y products and projects. Another factor, say 65Vo, is the greater number of single-family households.

Painting is by far the most popular project among women (77Vo), followed by renovating the kitchen or bathroom (l2%o), and adding new landscaping (87o).

Roughly 957o rank paint Products and accessories among the most common purchases by women. Also popular: gardening related supplies (867o) and outdoor living products (57Vo).

WWPA Adds Export Service

Western companies making and exporting value-added wood products can maintain access to foreign markets through a new Western Wood Products Association service.

Countries in Europe and elsewhere are requiring that all imported wood products be heat heated or kiln dried to protect against importing pests or plant diseases. These restrictions once applied only to lumber, but have recently expanded to cover secondary wood products, as well.

WWPA's kiln drying documentation service, conducted in coopera' tion with the U.S. Animal and Plant Health Inspection Service, assists western secondary manufacturers in securing required export documents proving the wood has been kiln dried.

Fees for the service are based on the volume exported. WWPA provides all necessary materials, including documentation forms, marking stencils, manuals and naining.

Bitl lViley is the new president of Adams Lumber Co., Tigard, Or., succeeding Mike Adams, who moves up to chairman of the board.

Lew MacDonald is ttre new gen. mgr. at Pacific Coast Millwork Co., Union City, Ca.

Ed Riedel is now dealer sales mgr. at Cooley Forest Products, Phoenix, Az., according to Mike Cooley.

James Mares has founded Southwestem Lumber Sales, Albuquerque, N.M.

Michael L. Skiles, San Diego, Ca., has been named v.p.-real estate for Lowe's Westem division.

Dave Beach is new to outside sales at Copeland Lumber Yards, Seaside, Or.

Yic Hadley has joined sales at United Pacifrc Forest Products, St. Helens, Or.

Jeff Comfort is new to sales at Idaho Forest Industries, Coeur d' Alene, Id.

Danlel Gust, Garden Acres Ace Hardware, Longmart, Ca., was elected to the Ace board of directors. Lawrence Bowrran, Owenhouse Ace Hardware, Bozeman, Mt., was re-elected to a 3year tenn.

Michael J. McFarland was named executive v.p. and chief operating officer of Swan Secure Products, Inc.

Kevin Proctor has been named director of education, training, and membership development at the Timber Products Manufacturers Association, Spokane, Wa.

John Yavrosky, ex-Georgia-Pacific, is the new industrial panel marketing mgr. for Potlatch Corp, Spokane, Wa.

Tom llogg has been named sales and marketing mgr. for Boise Cascade's building and materials distribution division. Brad Terrell is sales mgr. in Billings, Mt. James Lammert is lumber product mgr. at the Albuquerque yard.

Pat Harper was promoted to sales mgr. at Hoff Forest Products, Meridian, Id.

Charles Willett has been named cedar sales mgr. for Sundance Lumber, Springfield, Or.

Bob Shannon has formed the All-Heart Fishing & Board Co., Bodega Bay, Ca., specializing in fishing trips and hard-to-get redwood items.

Ken Caylor is the new sales mgr. for the LVL and plywood divisions of Pacific Wood Laminates, Brooklyn, Or. Rod Nichols and Terri Collins are new to sales.

Scott Slaughter is a new structural panel trader for Elk Creek Sales. Lake Oswego, Or.

Keith Matheney has been appointed v.p., core businesses at Louisiana-Pacific, Portland, Or.

Robert Scarper was named yard foreman at Hayward Building Supply, Hayward, Ca. George Sutton is new to sales.

James "Jim" Ilallstrom, Zip-O Lumber Co., Eugene, Or., was re-elected president of the Pacific Lumber Inspection Bureau, Bellewe, Wa. Greg Mobley, R.S.G. Forest Products, Inc., Kalama, Wa., and Jerry Weed, Pacific Lumber and Shipping, Seattle, Wa., representing Packwood Lumber Co., Packwood, Wa., were elected to the board. Reelected directors include: Philip Davidson, Davidson Industries, Mapleton, Or.; Roderick "Rick" Horte, Abeda Wood Products, Kelowna, B.C.; James turnt''Manke, Manke Lumber, Tacoma, Wa.; David Poggemoeller, North Enderby Timber Co., Enderby, B.C.; John Thorlakson, Tolko Industries Ltd., Vernon, B.C., and R.R. "Bobt' Waltz Jr., SeattleSnohomish Mill Co., Snohomish, Wa.

Peter Van Erde, ex-Ridgewood Forest Products, has started Mount Hood Lumber Trading, Portland, Or.

Bruce Jauman, Hardwood Services, Unltd., Huntington Beach, Ca., was elected president of the Los Angeles Hardwood Lumberman's Club. Phillip Sarris, American Hardwood Co., Gardena, Ca., is v.p.; Charlie James, Craftsman Millwork, Cenitos, Ca., is secretary-treasurer. Directors include: Nathan Osbourne, American Hardwood Co., past president; Walter Ralston, membership chairman; Richard Pascual, Scott Lumber & Plywood Co., City of Industry, Ca., social chairman; Fred and Dan Jones, Custom Mills, Inc., City of Industry, sgts. at arms; Kenneth Tinckler, Tinckler-Squires Lumber Co., Los Angeles, scribe, and Charles Bonhoff, Bonhoff Lumber Co., Los Angeles, and Dick Lambert, directors at large.

John II. Markley, former head of Cashways Building Centers and Pay N' Pak, is the new president & c.e.o. of Intemet retailer Shopping.com, Corona Del Mar, Ca., replacing founder Robert J. McNulty, who has resigned. McNulty previously founded Home Club, now HomeBase.

Scott Ramminger was appointed president and c.e.o. of the American Wood Preservers Institute.

Matt Meinerding is the new retail program director for Do It Best Corp.

Millard Barren is the new president & c.e.o. of Payless Cashways, replacing interim c.e.o. Donald Roller, who continues on the board.

Byron L. Hansen was appointed director of Distribution Management Systems, Inc.'s new electronic commerce department.

David A. Utterback, ex-Western Wood Products Association, is the new field services representative for California Redwood Association's new office in Kansas City, Mo.

Armando Marques, Orange County, Ca., was named business mgr.-Parabond floorcovering adhesives for the Southwestem U.S. for Para-Chem.

John J. Klocko III was appointed senior v.p. and corporate general counselor of Johns Manville, Denver, Co., to become effective August l, succeeding Richard B. Von Wald, who retired June I after 25 years.

Joyce llallowell has joined the Taylor Lumber Services group of companies, Grand Terrace, Ca., as an office staffer.

Dennece McKelvy was promoted to plant mgr. of Clopay Building Products' Tempe, Az., facility. He is overseeing the merging of their Chandler, Az., and Cerritos, Ca., operations into the Tempe facility.

Craig Flynn, Windsor Mill, Windsor, Ca., is back from a Southeast sales swing.

Bill Scott, Simpson Timber; Jim McClusky, Pacific Lumber Co.; Brad Mehl and Terry Kuehl, Siena Pacific; Scott Stockton, Skookum Lumber; Bruce Gravier, Harwood Products; John Kennedy and Seamus O'Reilly, Louisiana-Pacific, and Brett Van Sickle, Certainteed Insulation, were among suppliers attending Capital Lumber's recent open house in Denver, Co.

Larry C. Yarberry has been named chief financial officer at Pacer International, Lafayette, Ca. Brian Kane is director of financial reporting and analysis.

David E. Danzer has been named territory mgr. for sales of industrial and construction products for Bostik Inc., Middleton, Ma. He is based in Seattle and oversees Wa., Ak., Or., Id., Mt., and Wy.

Kevin IIug and Mike Flaherty, Metolius, were awarded Innovator of the Year and Top Safety Suggester, respectively, in Bright Wood Corp.'s annual suggestion awards April 2.

Elizabeth Hart, gen. mgr., Thunderbolt Wood Treating Co., Riverbank, Ca., was profiled recently in a recent Modesto Bee arlicle.

Warren Peese is compiling aggressive new training manuals for MungusFungus Forest Products, Climax, Nv', according to owners llugh Mungus and Freddy Fungus.

(Please tum to p.47)