ARIZONA SGENE

E.J. JOHNSON executive \ vice president

TgE ALBSA's 66th annual conven' I tion was a huge success! Attendees were treated to excellent business sessions and social events. Among the convention's highlights were the thanks and appreciation of the membership expressed to outgoing president G. Raymond Lopp and the election of Michael O'Malley as president for the 1987-88 year.

Eighty golfers participated in the first annual Bill Bell-Dean Drake Memorial Golf Tournament. Mike Ivory, American International Forest Products, won low gross honors after a playoff victory over Sam Bratton, ATKO Building Material Center. Scottsdale. Both scored an amazing "73" over the tough Ventana Canyon desert course. Low net honors went to Frank Heldt, Heldt Lumber CompanY, Phoenix.

Congratulations also go to Mrs.

Evelyn (Nelson) Sembach, All Coast Forest Products, flor winning the Ray Lumber Co. yacht trip out of San Diego. Dan McKean, Georgia-Pacihc Co., won the Kaibab Industries' houseboat trip aboard Lady K on Lake Powell. Finally low gross golhng winner Mike lvory' American International Forest Products, won the Lumbermen's Underwriting Alfiance putting green prize, a l0 oz silver bar. (Rumor has it that the low gross score was luck and that the four foot putting hole was skill - or maybe it was the other way around.)

Don Hossack, O'MalleY Lumber Company, was appointed the convention chairman for 1988 and announced that next year's convention will be held at the beautiful new Crescent Hotel in Phoenix. Dates for the event were set for May 12 thru May 15, 1988. Mark your calendars now and plan to attend!

The membershiP of ALBSA expresses its sincere thanks to Ray Lopp' senior vice president, Babbitt Brothers Trading Co., for his year as president of the association. During this past year, he has represented us at national and regional lumber conferences and has met with many members of the association at their places of business. In token appreciation of his services, Ray was presented an oflicial commendation during the annual meeting and was given a plaque with his picture and the signatures of each of the members of the board of directors. Again "thanks" and best wishes for a job well done.

JHINX TWICE before piling on cash I incentives as a means of motivatine your sales people.

"Cash commissions have become such an integral part of sales compensation that they may have lost some of their ability to improve performance," says Jerry McAdams, co-author of a new compensation/productivity study. Surveys showed such non-cash incentives as travel and merchandise motivated just as effectively as cash awardsat one-third the cost. Cash incentives cost about 120 for every extra dollar of sales, while noncash bonuses cost only 40 per dollar,

In addition, McAdams notes, noncash incentives have a "trophy value.,' If you win a new fur coat, you can wear it. It's not so easy to show off a few hundred extra dollars in your paycheck.

Safety at the workplace means safety outside as well as inside the buildine. Managers have a responsibiliry to feep their grounds clean, safe and hazardfree. All walkways, ramps and stairs should be in good condition, cleared of water and debris. Parking lots and adjacent roadways should be free of potholes. Not only do potholes provide trip- ping spots for employees and visitors, but costly machinery and stock might also fall prey to the neglected surface.

Visibility is another critical feature of "outdoor housekeeping." All entrances and parking lots should be well lighted. Trees, shrubbery and stock should not present blind spots at roadways or walkways.

A good maintenance program includes a routine inspection of the grounds, with repairs made as soon as possible. Until the work is completed, barricades and "Men Working" signs should be placed at hazardous locations. Also, employees should be encouraged to keep grounds clean and alert the supervisor to potentially dangerous situations.

The Jones Act, which forces U.S. companies to use only American-built. crewed and registered ships in domestic trade, has been targeted for revision.

H.R. 1979, introduced by Rep. Ron Wyden (D-Or.), would allow less expensive and more available foreign flag ships to carry forest products from the North_ west to East Coast markets.

The National Lumber & Building Material Dealers Association has before backed this approach, arguing it would reduce transportation costs and provide more lumber competitionconceivablv lowering prices and improving ".onomi. conditions through job creation in the Pacific Northwest.

One dealer has found a way to fight shoplifting. The contractor counter is four feet higher than the floor, and the contractor sales staff has a clear view of the store. When they see a suspect, they announce over the PA system, ..Mr. Gray, your order is ready." Clerks keep an eye on the person whom the counterman points out by walking close to him/ her. The program has brought several apprehensions and reduced losses drastically.

Money is not costing as much now but all indications are pointing to interest rates moving up, so now is a good time to give a hard look at your accounts

(Please turn to page 32)

August 1987

Oil- Based Paints/Stains Threatened

Regulations scheduled for September, 1987, are expected to effectively ban the use of most oil-based paints and stains in California.

These regulations limit the amount of Volatile Organic Compounds (VOCs) permitted in architectural coatings. VOCs are present in the solvents used for most paints, stains, primers and water repellants. The limits were first proposed by the California Air Resources Board and the E,nvironmental Protection Agency.

According to CARB and EPA, VOCs are contributors to the formation of ozone, a harmful component of air pollution. Local air pollution districts in California are planning to administer the new limits beginning next month.

The paint and coatings industry has been working to develop oil-based finishes to meet proposed lower VOC limits, but to date these finishes do not have the performance of traditional solvent-borne oil-based products. As a result, few companies offer oil-based coatings that meet the limits. Consequently, water-based or latex finishes may be the only alternative if these regulations are strictly enforced.

The regulations are expected to have far reaching consequences for manufacturers, retailers and consumers. The effects will be felt in the coatings industry and many related building materials industries. For example, the lumber industry depends on solvent-borne oil-based coatings' superior protection against moisture. Solventborne coatings perform better because they penetrate deeper and last longer. Certain species, including redwood, western red cedar and Douglas-fir, can develop discoloration problems if water-borne finishes are used without solvent-borne oil-based primers.

Owners of wood sided buildings will inevitably face higher maintenance costs and more frequent refinishing if solvent-borne oil-based coatings become unavailable. Lumber producers and lumber merchants in California are concerned these regulations will have a negative effect on wood products sales.

After granting extensions for the last l0 years, the local air pollution districts in California and the Environmental Protection Agency appear ready to enforce limits established by cARB and EPA in spite of the far reaching effects such action will have in the construction industry and to its suppliers.

Eureka Southern Eyes Simpson RR

Bankrupt Eureka Southern Railroad Co., which'had negotiated to purchase Simpson Timber Co.'s Arcata-toKorbel, Ca., Arcata & Mad River Railroad Co. prior to filing Chapter 1 1, will reattempt to buy the line, according to Eureka Southern's attorney.

Lawyer Philip Arnot said his plan is to buy the line on credit in exchange for providing rail service flrom Simpson's Korbel mill. He estimates it would take four years to pay off the debt.

Yet Simpson says Arnot has made no such offer. "l only know what I've read in the newspaper," said Hank Sandstrom, Simpson v.p./general manager. "(Rrnot) tells me he's still several weeks away from sitting down with us and working out the differences."

"The line is of no use to us," said Sandstrom, who is considering entertaining offers from other companies.

WAYN E GARDNER executive vice president

S WE start moving down the last h days of summer, our thoughts often turn to next summer's vacation, even though it's l2 months away. Some reflect longingly on the summer and say, "Well,Labor Day weekend will be the last big holiday until Thanksgiving." And as they sag back into the chair, a feeling of despair falls over them, thinking there is no place to go. It doesn't have to be that way.

The Lumber Association of Southern California will have its annual conference Nov. 5, 6,7, and 8 at the Marquis Hotel in Palm Springs. This can be a mini vacation as well as a business trip. A great opportunity to relax, yet pick up some knowledge about how to do a better job managing your company. And what better time thrn after Labor Day and before we get all caught up in the

ThanksgivingChristmas round of family get-togethers and parties associated with the holiday time.

This year's conference theme will be "Making Waves." There are a lot of people who subscribe to the philosophy "Don't Make Waves" and as a result, nothing gets done. That's not what you want as a company nor as an industry; so the conference theme "Making Waves" was selected to get everyone thinking about moving the individual companies and hence the industry ahead.

The keynote speaker will be Ivan Browning. His subject will be "Climate and the Affairs of Man." Certainly a good "building climate" is essential to our success as an industry. Dr. Browning is eminently qualified to discuss climate: is it changing, will it change over the next few years, and what effect this will have on the lumber and building materials industry?

A second speaker selected is Wayne

You're ready with MNffi

ALL-WEAIHE R GUTTER S/S]EM

Quasha, one of the members of the Merrifield Management Team. This group has done a study for North American Wholesale Lumber Association on "The Wholesale Function," and has a video tape available on the subject. A similar study "The Retail Function," will be completed before the conference and Quasha will make one of the first presentations to LASC. And that's only the beginning.

The Second Growth panel will be a part of this year's program, in addition to a number of other agenda items, all pertinent to the lumber business, including some exhibits.

Need a short vacation between Labor Day and Thanksgiving? Try the LASC Management Conference Nov. 5, 6, 7, and 8 at the Marquis Hotel, Palm Springs, where, I think some P.R. guys used to say, the sun spends the winter. And believe me it does. But the only way to really know is to experience it yourself. See you in Palm Springs.

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August 1 987

Home Center

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FRED CARUSO executive secretary

esflfe hundreds of phone calls

Y and letters from lumber dealers in opposition, a revision to the lien law has been railroaded through the Colorado State Legislature.

The new law exempts homeowners from having to pay twice if they can prove they paid their contractor in full. Covered under this law is all renovation work and new residential housing occupied by the owner. Material and labor suppliers should interpret the impact of this bill at its extreme in favor of the homeowner.

Thirty-five lumber dealers and credit managers attended a MSLBMDA sponsored meeting at which measures were recommended to protect materials suppliers in the face of the weakened lien law. The re-examination of credit poli- cies and the review of credit practices were among the priority recommendations made. Dealers were advised to continue to file liens and notices of intent to file as they always have. They were advised to file liens early and to be aware of the possible effects of the new law.

The MSLBMDA is preparing to seek an overhaul of the Colorado lien law in the next legislative session. The accomplishment of this will require consensus and support from allied construction groups. Proposed is the creation of a Construction Industry Council which will involve contractors, subcontractors, lenders and suppliers.

A similar group is proposed for New Mexico where the lien law was gutted several years ago. The first ofa series of meetings was held with State Representative Stuart Hill. He was extremely cooperative in sharing concerns with the industry.

John Chiado, Lumber, Inc., Albuquerque; Tom Rutledge, New Mexico Building Branch of Associated General Contractors; Jack Milarch, New Mexico Home Builders Association, and I attended.

Future meetings of the group are scheduled.

A two day management conference and convention at the Brown Palace Hotel, Denver, Nov. 5 and 6, will focus on learning what the experts and the competition are doing to establish financial, customer service and employee management systems. Specific topics will include how to motivate employees to think and act like owners by using a bonus system based on a percentage of return on assets; how to use the computer to maximize buying opportunities and how to position and reposition your business in the face of constantly changing conditions and new forms of competition.

Future Dates

Check our Calendar on page 20 lor information on uocoming conventions, meetings and trade shows in your region.

HARDWOODS of all tYPes used bY: t&Nlf\