A Pause on the Way to The Next Housing Explosion

As Walter Wristen of the Citv Bank once said, "The future isn't what it used to be! " and that bit of profound logic is a clever expression of the uncertain economic outlook we now face.

The strengths that we have going for us are in the fundamental need for shelter and the huge market potential to fix up existing dwellings and make them serviceable for the vears ahead.

edgers, greater breadth of hand tools and the demand in all of these areas for more quality instead of promotional price. Such an atmosphere calls for better trained sales personnel to on-the-spot sales to educate the consumer.

Story at a Glance

Corporation

By Clark A. Johnson Executive Vice President The Wickes

I N December a1979.I commented quite extensively about the outlook for the decade of 1980s and how the demographic forces alreadv in place will posi- tively impact our businesses.

In the intervening twelve months, forces have been at work caused bv schemes of the government that havi postponed the beginning of this strong economic period and, accord-

Story at a Glance

Financial markets will steady by late '81 .. . '82 will be the first stage of a strong recovery . . . energy costs will continue high.. .d-i-y to remain strong.

ing to some, set into motion forces that will make house ownership, the backbone of our business, atmost a privilege of the chosen few.

It is my vrew, however, that the financial markets will steady by late l98l and that 1982 will see the first stages of a strong recovery in housing and building related activities.

The outlook for the next several years will be influenced by the displpportionate costs of eneigy in the allocation of personal expEnditures and that the cirnsumer wili be motivated to watch this expense category carefullv.

ttris witt influence how they live, work and recreate-the goals for us in the building materials and wood products business are the same. and we will te required to carefully analyze our business methods and-concepts to see if they are in keeping with the new "Energy Economics. "

It will be the proper strategists who gear their marketing plans to the growth areas and recognize that strategic shifts are necessary to grow and produce the desired rate of return on our investments and, in some cases, survive.

Those trade factors such as our Builders Emporium subsidiary in Los Angeles will continue to prosper because they are positioned to respond to the basic needs of people who live, in most cases, within close geographic proximity to their 53 stores.

In summary, the 1980s boom is delayed-the demand for housing and thus wood products is high and growing. These two forces will meet at some point in the future and we will enjoy the outcome in our businesses.

In the meantime, we will have to struggle along a few months longer and adjust our businesses to the reality that exists today.