Conference talks out industry's varied problems

EIOR THE fifth year in a row, the Westr ern Buildine Material Association's All Industry Markiting Conference has produced a slug of information for all levels of the industry and has also provided a forum for communication between those levels that is so vital for the efiective functioning of all.

In a change of format, two nationallyknown speakers related their thoughts at breakfast and luncheon meetings. With the three industry segments (manufacturers, wholesale distributors and dealers) meeting separately, each was addressed by representatives of the other two on problems and opportunities of marketing.

Those who discharged their duties in excellent fashion in this capacity were: Wendell Weatherly, Weat}erly's Inc., Eugene, Oregon; J. Cutler Lewiso Palmer G. Lewis Co., Inc., Seattle, Wash.; Cameron A. Kyle, Portland Road Lumber Yard Inc., Salem, Oregon; J. M. Bettis, Irrigators Lumber Company, Caldwell, Idaho; R. E. Trumbull, Owens-Corning, Toledo, Ohio; W. Dean Short, Boise Cascade, Portland, Oregon.

Following the initial day of talks and discussion, the chairmen of each group formed a panel on the second day for summaries and further questions and answers by the entire assembly.

Ray Hallberg, NAHB vp., Portland, was the kickofi speaker. Commenting on the current 1.3 million rate of housing that illustrates the crisis and the depression of the industry, Hallberg felt the rate would probably drop to one million by the end of 1969. The chief causes are money and manpower. He pointed out the unfairness of the anti-inflationary moves wherein the construction industry, which does 4/o oI the 'GNP, bears 9O/o of the crunch. Over the long haul, in his opinion, our greatest shortage would be in qualified workmen and that much more cooperation is needed from unions to bring in apprentices; per hour rates are becoming prohibitive.

He pointed out that to meet the demands of increasing population, the industry must provide by the year 2000 as much new housing as is now standing. This he felt could be done if the national priori- ties will allow it. He said that the export in 1968 to Japan would have produced 300 million homes; that while we currently have no material supply problem, what again will happen if we begin to moveeven to I.5 million starts a year.

Richard Bullock, publisher and editor of B uildin g M ater ials M er chtnrd,iser, stirred up the listeners with a documented report on the inroads of mobile homes.

Sfory dI s Glonce

Suggestions and ideas on what's right and what's wrong in our business what to do and what not to do pour from immensely informative WBMA Conference.

This industry, which will produce 400,000 units in 1969, capturing an increasing share of the market, is L22,4o up in dollar sales in the past 5 years. Some reasons: ease of purchase and decision; low cost ($8.50 per sq. ft.); ease of financing; complete and now improved construction. Bullock also called attention to the research being done by large manufacturers in aerospace and autos in the development of manufactured homes.

He felt that market-oriented dealers could find sales opportunity in two areas; ( t ) join in the sales of mobile homes or (2) become a specialist in the repairing and service of mobile homes.

The Panel Reports began with Don Jaenicke, wood products marketing services operations manager for Weyerhaeuser Co., chairman of the manufacturers' group. The conclusions reached by his segment were:

(1) Recognition was given to the request for before or after hours meetings by dealers with manufacturer or wholesaler representatives.

(2) The WBMA form: Report of Customer Complaint was excell'ent and should be used by tlle industry.

Recognition of the request that manufacturers help train wholesaler sales personnel.

The success{ul wholesaler sells either to builder or dealernot both. Review proposed new promotions and/or products with wholesalers and dealers before launching.

Give wholesaler (and dealer) more lead time to prepare when droppingn introducing products or raising a price.

Manufacturers, wholesalers and dealers should all support the do-it-yourself instructional films now being prepared.

Jaenicke called attention to the bright future for the building material dealer with the northwest states, growing in population about I3-I4% above the national average. In addition, there is a tremendous market for home improvement. The future and profit lies with the forwardlooking dealers who will keep in tune with market conditions.

Phil Harris, sales mgr., Palmer G. Lewis Co., Inc., chairman of the wholesale distribution group reported that:

(I) There was need for increased advertising by dealers. (A later discussion concluded that manufacturers should direct more of their advertising budget to the local level in cooperation with dealers.)

(2) Stressed the "move or make room" formula for wholesalers and dealers. Turn times gross should equal 150 for dealers.

(3) The wholesaler must be loyal to both manufacturer and dealer and there is need for communication for understanding of problems.

(4) Encouraged compensatory pricingthe day of a flat markup is past.

(5) Need of assistance from dealers on product complaints.

Harris commented too on the bright prospects that lie ahead for our industryif we work at it.

I[ayne Mattsono president oI both WBMA and Logan Lumber Co., Inc., Burien, Wash., served as chairman of the lumber and building material dealers:

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