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By Jim Bartelson Blue Book Services

OWADAYS, IT SEEMS economists are the most popular people at lumber industry conferences. Meeting halls and hotel bars are filled with lumber professionals from across the supply-chain wondering what the economists' forecasts are for a range of metrics-most notably home buildine.

While the economic forecasts vary in their optimism, the universal consensus is that it can only improve. But when?

As the lumber industry waits for a strengthening economic recovery. business leaders have been logically focusing their teams on controlling all the variables within their power. The search for solutions often includes collaborative efforts with industry associations and allied suppliers.

One such example of this is the industry's quest to cost effectively manage credit risk: the loss to the creditor when a debtor is delinquent or in default on a trade obligation. Prior to 2008, this objective was fulfilled by lumber companies working with Lumbermen's Red Book. But, a void was created by Lumbermen's closure.

To fill that gap, Blue Book Services, a leading credit, financial, and marketing information agency since 1901, is now working with lumber and forest products companies to again provide mills, wholesalers, and secondary manufacturers with industry specific credit information. The forward progress toward this end has only been achieved, however, by working with others in collecting the data necessary to deliver accurate. timely, and reliable pay indicator information.

To start with, DMSi and WoodPro have independently developed utilities that make it simple, quick and convenient for their users to securely submit the necessary accounts-receivable aging information to Blue Book Services. Other software providers have similar tools in the works, ultimately making it easier for more companies to similarly contribute data.

Next, an ever-increasing number of lumber companies are stepping up and routinely providing their A/Raging data exports to Blue Book Services. Motivated by the ambition to have a broad. industry perspective not found elsewhere, a wide range of companies-handling hardwood to softwood- are contributing the necessary files, typically on a monthly basis.

Of course, the data is stored safely in each instance. And, the source of the data is kept confidentially, consistent with our practice for the past I l0 years.

Finally, the data is displayed anonymously-both on screen and in reports. This unwavering combination of data management protocols provides contributors with the confidence necessary to not only keep submitting data, but to also encourage their peers to do so as well.

Finally, various industry associations have helped by providing different forums to spread the word about how to submit A/R aging data and the benefits thereof-to the company and the industry as a whole. Moreover, Blue Book Services has earned NAWLA's designation as a Recommended and Approved Service Provider.

As the database of A/R aging data increases, so too does the value to the growing number of Blue Book members. With the cooperation of more and more data providers, our collective effort toward cost effectively managing credit risk progresses.

- Jim Bartelson is executive vice president of BIue Book Services. Contact him at jbartelson@ bluebookservices.com or 630) 668-3500.