ldeaxYears=Success

EORTY YEARS of following a F personal philosophy has enabled the Palmer G. Lewis Co., Inc., to grow from a one man, one office, sole proprietorship to a multi-product distributing corporation whose common stock is traded on the National Over-the-Counter market.

Beginning with an idea, Palmer G. Lewis set up business in January, 1940, at the Hullin Terminal Building, 1016 First Ave., South, Seattle, Wa. He was convinced that with work, patience, and a desire to provide a brand of service much above that ordinarily expected, and demonstrated genuine personal interest in the customer. a business could achieve success. His devotion to this ideal and the belief that members of a company could achieve personal satisfaction followins it were the cornerstones of the nei firm.

The office was outgrown by the next year, and a continuing pattern of growth and expansion to larger quarters was begun. The most recent move took the main distribution center to Auburn. Wa.. in 1973. Since then these facilities have expanded from 7 to 20 acres occupied by 153,000 sq. ft. of warehouse and office space, a total investment of $3 million.

From the Auburn location a network of operations stretches throughout the West with l0 PGL branches in Washington, Montana, and Alaska. The Oregon division has facilities in Eugene and Tigard. Further south, the Ponderosa Division operates in Redding, Sacramento and Fresno, Ca., as well as Reno, Nv. Superior Building Supply functions in Alaska with the main office in Kenai and five retail locations.

Truck Service Inc., Kent, Wa., was acouired to assure quality maintenance'for the large PGL truik fleet. Now it also services other companies.

These expansions have increased the number of employees to approximately 410 persons for whom the company provides a profit sharing program. In addition about 807o of the employees are stockholders in the company.

In looking ahead, Robert D. Peter- son. chairman and chief executive officer, and Richard E. Lundgren, pres. and chief operating officer, ielate to the '70s when conditions were viewed with fear. They feel that the company survived in good shaPe by paying attention to the basics. Their projection is that these same basics will see them through any hard times in this decade as well.

The basics which might be readilY applied to any business situation are simple, but powerful. The management firmlv believes that distribution is a good, sound business, growing everywhere. They also maintain that good broad line distributors are needed more each year in spite of industry business cycles.

Story at a Glance

Faith in their tenitory is strong. They are confident that theY are in the right place where the growth rate will exceed the nation's average in the years ahead.

The company also believes in the basic need for building materials. In addition, they believe in remodeling and do-it-yourself growth, calling it the backbone of their business.

Finally, and most impressivelY, PGL has put together a PeoPle-oriented company. EmploYees are aware that the comPanY Provides what Palmer G. Lewis calls "a waY of life for people and their families" and respond with a commitment to make things happen.

Preparing to face the conditions

September, 1980 of today, the board of directors expects to develop even closer supply relationships with major accounts, helping them in both promotional and lnventory control activities. The current downtrend in the buildins industry is due, they explain, t5 record high interest rates, not to lack of demand. Any dip in the building cycle, they feel, is going to result in significant pent up demand for the Iuture.

Philosophy, basics, or good management, they all add up to 40 years of success for a man with an idea and a company.

Despite an increase in housing start and permit nos. for the 2nd mo. in a row, fears persist that developments in the $$ markets may squelch further uPward moves.. home mortgages have moved up to l3t/zo/o from 12V0, with predictions of l4o/o soon, while the prime rate moved uP again, to llt/zo/o from lltAo/a...

Latest housing start figs. (July) were up 4.8olo, to a seasonally-adjusted 1,226,000, due entirely to a rise in single family starts of 13.806. multifarnily starts dropped 10.50/0. despite the increases, this July was still a huge 28.20/o below last July.

Permits for future home building were up i5o/o from the mo. previous, to 1,240,000. .. as of July 664,500 units have actually been built in '80. the National Assn. of Home Builders warn that higher $$ rates could cut 50,000 units off '80 totals.

Phoenix-based Capital Lumber Co. has acquired Sunlight Enterprises,lrc. Lubbock, Tx., which it will operate as a new branch emphasizing redw. & cedar; former Sunlight top man Herman Hudgeons will remain in other capacities, with Capital, Rick Pierce is the new mgr. Capital has moved its Orange, Ca., disffibution yard to a beautiful new 10 acre facility in Chino, Ca. (for an earlier story on it, see The Merchant, Mar., p. 34).

Leatherback Industries, Inc., is the new name for Nical, Inc., Hollister, Ca., a mfg. of roofing felts and other construction products; E. A. DiSalvo, ex roof. div. pres. for Celotex is c.e.o.

Globe International, Redondo Beach, Ca., a big paneling and construction products distributor has gone bankrupt; their San Jose and Phoenix branches are both closed. .

Maunt St. Helens timber salvage sales are exPected to besin Oct. 1.. . . Ca. is the no. I deitination G3.70/i in West-toWest lumber shipments. the RRs have dropped their recent praposal to eliminate transit privileges. . .Harwood Products has added a twin band resaw at their Branscomb, Ca., mill. .

Wickes Corp. has axed four top executives at their recentlY acquired Gamble-Skogmo sub' sidiary. . Evergreen Industries has taken over Western Pine Industries' operations in N.M. and Az. Evans Products Co. has agreed to buy Steel CitY Building Centers, a Pittsburgh, Pa., retailer.

Daylin,.fuc., subsidiary of W. R. Grace & Co., has acquired nine home centers in N.M. and Ut. from Cashway Building Materials. .. E. F. Hufton & Co. has purchased 10.220/o of South' west Forest Industries which recently announced plans for a $20 million sawmill in Eagar, 42...

Louisiana-Pacirtc has shut down operations at their Ukiah, Ca., particleboard plant; L-P also will acquire 3,500 acres of timberland in Sonoma CountY, Ca. . . Brand S Corp., Corvallis, Or., is reportedly uncertain about rebuilding their plYwood plant destroyed by fire.

Southern Pacific Co.'s acquisition of the Tucumcari Line (St. Louis-Santa Rosa, N.M.) has been okayed by a federal judge. The /CC approved RR freight increases averaging over 5o/o in the West. .

Ace Hardware Corp. has opened a $9 million warehouse in City of Industry, Ca. International Paper Co. has opened its first wholesale building materials distribution center in the West at Tualatin, Or.. Missoula Forest Products, Inc. is a new wholesale lumber & building material distribution center in Mt. .

California Shingle & Shake Co., Concord, Ca., has opened a lumber brokerage div., Califor' nia Bay Building Supply Co., Pleasant Hill, Ca. National Farest Products Co., Vancouver, Wa., now has a sales office in Honolulu, Hi. .. United AlPine Lumber Co., Portland, Or., is closing after 30 years. . Dunlap Forest Products, Scottsdale, Az., is celebrating its first year in business. . Reid & Wright, Inc., Arcata. Ca.. has established a Rocky Mountain sales office in Boulder, Co.; they have another sales office in Honolulu, Hi...

Siskiyou Forest Products has moved to Woodland, Ca., buYing the Inland Lumber Co. remanufacturing Plant and wholesale yard. . . Sawtooth Lumber Co., Mountain Home, Id., is operating as Sawtooth Forest Products after purchase bY Randy Harris, Larry .Williams and Jim Johnson; sales are handled by Idaho Timber Corp..

Del Daley Forest Products, Inc. has moved to larger quarters at 11825 S.W. Greenburg Rd., Tigard, Or. . Cedar Seven, Inc. is a new wholesaler in Bellevue, Wa. Pacifico(TimbeiPty. Ltd., Australia, has formed llestwlf Export Lumber Co., Portland, Or...

McClellan/Schneider Mill and Lumber Co., a new co., (Ron McClellan and Bob Schneider) has moved into new quarters at the ex-McClellan Planing Mill (predecessor co.) address in Wilmington, Ca. . . Redwood

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