Building materials firm thrives with acquired properties

f LTHOUGH in recent months it Awould be easv to assume that building materials groupr are on the decline due to a slowing in sales, Cole Industries, National City, Ca., maintains that this is not the case with the Companies of Lumber I which it owns and operates.

Starting in July, 1976, with the purchase of Solana Lumber Co., Solana Beach, Ca., a large successful lumber and building materials operation founded and operated by Herschell Larrick, Sr., and his son, Herschell Larrick, Jr., Cole Industries by acquiring businesses has developed a group of separate subsidiaries including the Solana Lumber Co.,Tidelands Sales Yard and Water Street Wholesale Lumber Co., in National City, and Fallbrook Lumber Co., Fallbrook, Ca.

With a market area of ali of San Diego County, 4,24 sq. miles, the operations offer a full line of softwoods including clears, rough Douglas fir cuttings, hardwoods and plywoods as well as hardware, plumbing, electrical, power tools, paneling, moulding, doors, building materials, garden supplies, paint and landscape materials. Cedar is a specialty because of the demand for exterior sidings and exterior paneling in the San Diego area.

Custom milling, resawing, ripping, surfacing, band sawing, detailed cedar sidings and paneling are concentrated at the Waterstreet facility. They also provide detailed sills, jambs and similar products.

Business is 2 to I contractor at present, but the mix is changing due to a slowing in contractor trade. To encourage the gradually increasing retail trade, the company stresses

Story at a Glance

Company blankets area with four facilities contractor/ retailer lumber, building ma. terials. . milling capabilities

... aggressive marketing competitive pricing, customer service, advertising in local newspapers, contractor oriented magazines and special promotions including anniversary sales, parking lot sales and grand openings. At the moment all the branches are participating in a l3 month contest, the "$10,000 Win-AHouse Contest."

"The response has been tremendous and the enthusiasm generated among our customers and with the company as well is helping us all through what might have been a discouraging time," says Deborah Page, public relations officer. "It fits into our company objective of op- timal expansion consistent with the honesty, personal service and knowhow of a good, old-fashioned lumber company, while extending our service to households and contractors in a wider geographical area, using the best of the old and new in management and ideas."

Sales for the four operations are approaching $20 million with a payrollof approximately $2.S million. There are 200 employees, nine in managementand2T in office jobs. In the contractor sales department eight sell locally and three county wide.

Building permits and report sheets are studied to generate sales. The management works to draw the sales force together, encouraging them to find new business, keeping them enthused about better times and higher pay in the future.

With the exception of the Tidelands Sales Yard, all the properties were well established when acquired by Cole. Solana Beach is 59 years old, Fallbrook, 36, and Waterstreet, 27. The company has strived to retain the local company character in each community.

Modernization and expansion have been emphasized with a point of sales, interactive, on line computer system being a late addition to management. An independent, inhouse advertising agency, Industries Advertising Associates, handling media relations for the entire corporation and serving outside accounts as well, is now being launched.

Looking ahead, the management predicts that although their specific area will be less affected than the national average in the market place, there will be a flat spot for the next 18 months with moderate growth thereafter. Aggressive marketing and acquisition of existing companies in new markets are included in their plan for coping as well as improved productivity and increased efficiency.