WWPA fall meeting

lncro wirh a ioss oi income, I the Western Wood Products Association agreed at their recent fall meeting to cut approximately $200,000 from their $2.8 million marketing budget. Other areas ofassociation activity suffered minor cuts.

The revenue loss occurred when long time member Champion International dropped out after it sold off its Champion Building Products division as a separate company which is now known as U.S. Plywood.

WWPA income is mainly derived from a set fee based on a member's lumber production or from fees from its grading servicesonly members. Some modest optimism was unofficially expressed that the membership loss could be offset and the important marketing program fully funded.

Despite the budget cuts, one of the most comprehensive promotions on solid wood paneling ever designed for retailers was unveiled at the meeting. Western wood producers, hoping to capitalize upon a surge of growing interest in solid wood paneling for walls and ceilings, as well as wainscoating and other mouldings, were given details of a complete merchandising package, the first such promotion devoted to these products in the past 25 years.

The new Wood Interiors campaign is just one of a number of retailer promotions included in the overall lumber marketing strategy adopted last year by WWPA.

The Wood Interiors promotion is expected to contribute substantially toward reaching the association's fiveyear goal of developing a potential 2.5 billion board foot increase in annual domestic retail sales of western lumber by 1989.

In his semi-annual industry forecast, WWPA president H. A. "Bob"

Roberts noted that "There have been some statements that lumber quality levels are declining in some regions of the country. Quickly, I want to tell you: 'Not so in the West."'

Roberts commended western mills for their commitment to quality products, saying: "Your dedication should be a source of confidence to your customers and pride to you as a member of a responsible industry. " He added that inspections at WWPAmills show only about l9o above grade and

Story at a Glance

Westem producers association forecasts level wood consumption in 1986 with 1.65 million housing starts and increased repairand remodeling activity... newsolid wood paneling promotion unveiled.

390 below grade, well within the 590 tolerance set by the American Lumber Standards Committee.

He credited mill management in the

West and the association's quality standards staff. "l want to make sure you understand that some of the broad-brush strokes and self criticisms of other regions do not apply here in the West," he remarked.

In discussing lumber consumption in the U.S., Roberts said it should remain at this year's levels in 1986, despite a decline in housing starts. WWPA's forecast sees U.S. lumber consumption at 43 billion board feet this year, about the same as in 1984. The association is predicting 1986 consumption to drop slightly to 42.655 billion board feet; 1985 housing starts are forecast to be 1.7 million units. Next yeaq he predicted, housing starts will decline ro 1.65 million units.

'A continued increase in lumber use for repair and remodeling, and a slight increase in exports will pretty much offset expected losses in residential construction in 1986," the association president said.

Lumber imports from Canada are predicted to hit a record 14.4 billion board feet in 1985. WWPA forecasts for 1986 place Canadian imports at 14.2 billion feet, but Roberts added, "I doubt anyone knows where potential shipments from Canada to the United States will top out."

In a later luncheon presentation, Roberts joined Pope & Thlbot's William Whelan in reporting on a trip both had made to the People's Republic of China. They noted the enormous size of the market (1.2 billion population), the annual rate of housing starts (ll million) and called for long range planning by western in(PIcusc tunt t() puge I I )

(15)James Herr. (16) lra Liberman, Greg Butler, Robert Mosby. (17) Vic Riolo, Ken Jurgens, Craig Larsen. (18) Kent Duiysen, Nancy Sullivan, Bill & Pam Davis. (19) lvan Hanson, Bill Sullivan, Bob Golding.

Weyerhaeuser has sold its Dixie/rne unit,San Diego,Ca.,lo Nortek, Inc., (see page 34 for details) Western Lumber is a new company formed by a buyout of Boise Cascade interests in San Diego (see page 34 for full story)

A 663,000 sq. ft. proposed Home Center of Bakersfield (Ca.) will cost $60 million and include 45 stores ranging from a lumber yard toafurniturestore...

Home Depot, which recently opened a San Bernardino, Ca., unit, plans a January grand opening for its San Diego, Ca., store . Ernst Honte Centers will open two 35,000 sq. ft. stores in Renton and Issaquah (Seattle), Wa., at the end of Nov....

Pay 'N Pak Stores Inc., Kenl, Wa., has acquired Handyman Inc.'s stores in Beaverton, Milwaukie and Southeast Portland, Or., for $10 million National Lumber held a double opening in Oct. for new stores in Fontana and Encinitas, Ca.; San Bernardino, Ca., opening is pend- ing...

Denver Wood Products, a div. of Southwest General Corp., Evergreen, Co., has acquired Weyerhaeuser's Everitt Lumber Co. home center and contractor yard in Colorado Springs, a Greeley truss mfg. plant and contractor yard, and Fort Collins contractor yard, all in Co.; Weyerhaeuser has remaining company home centers in Greeley and Longmont on the market

Orchard Supply Hardware has opened a store in Concordr, Ca. Raynel's, Yakima, Wa., recently purchased by Darryl Smoot, is now known as Raynel's Summitview Hardware & Gorden Center . . Bert Bertolero is seeking planning commission approval for a home improvement shopping center in Danville. Ca.

Ione Hardwqre is the new name for Rietmann's Hardwore, newly purchased by Helen and Robert Heideman, in Heppner, Or. Collins Cashways in Fort Collins and Loveland, Co., have remerchandised

Homeclub held twin grand openings in Ocr. for warehouse stores in Bakersfield and SanMarcos, Ca.; the HI Cajon, Ca., store will open in December with a San Pablo unit debuting next March.

Ole's Plus super home centers have opened in Claremont, Ca., and Las Vegas, Nv. Moyer Lumber, Inc., held a grand opening for their Meeker, Co., store . Copeland Lumber Co. is closing locations in Brawley and Holtville, Ca. . . . Over 5Yo of Handyman, Inc., San Diego, Ca, has been acquired by Boatmen's National Bank, St. Louis, Mo. . .

Thunderbird Hqrdwsre, Hillsboron Or., lost an as yet undetermined amount of cash in a recent safe burglary Jack Allen Lumber, Templeton, Ca., lost an office building in a recent fire of undetermined origin

Gross Volley Hardware, Grass Valley, Ca., which received a 100 Year Award recently from local officials, has been in business since 1854 when it started as Mclaughlin Hardware . .

Anderson Lumber Co., Ogden, Ut., plans to build a retail store and lumber yard in the proposed Affleck Park development in Ogden.

All Woods/Schraeder, Inc., Houston, Tx., is in the process of establishing a Denver, Co., distribution warehouse . Pacific Western Lumber, Inc., is a new

Tacoma, Wa., wholesaler formed by Dan Spriesterbach, Joe Nealon, Dave Betz and Bill McGovern . .

First nine month sales and earnings for Potlatch Corp. weretrailing 1984 . . Louisiana-Pacific's earnings were down in the same period with net income also down . . . Georgia-Pocific's income was down although sales were up Pacdic'Lumber Co., and Maxxam Group, have agreed on a deal (see page 2l for details)

Southwest Forest Industries, Inc., Phoenix, Az., is settling litigation challenging its "takeover rights plan" .

Sunrise Forest Products has restructured and sold off some assets (see page 2l of this issue) . . Pope & Talbot, Inc., Portland, Or., are seeking shareholder approval to form a limited partnership with certain land development and timber assets .

Potlatch Corp., San Francisco, Ca., is proposing a bylaw amendment to ward off hostile takeover attempts . . ITT Rayonier Inc., Stamford, Ct., is transferring its timberiands to Rayonier Timberlands.L.P....

Snavely Forest Products has completed a \W sq. ft. hq. in Phoenix, Az., one of the first office buildings to combine a Permanent Wood Foundation and an underfloor Plen-Wood system.

Zircon International Inc., Campbell, Ca., has sued Genie Home Products, Inc., claiming patent infringement, misappropriation of trade secrets, unfair competition and misappropriation of business opportunity.

Remax isa new property brokerage opened in Mission Viejo, Ca., by John H. Markley, former pres. and c.e.o. of W. R. Grace's western home center region.

Housing starts fell9.39o in Sept. (latest figs.) to a seasonally adjusted annual rate of 1,583,000, the lowest annual pace since last Oct. . . . single family starts were off l0.4Vo, multis fell7 .6V0, while permits rose 0.70/o (Please