Merchant Magazine - December 1981

the lumber, building materials and home improvement markets in 13 Western Sfafes-Slnce 1922

DMK-Pacific as a company has grown in the past year with the addition of mo new offices: one in Redding, California, the other in Kansas City, Kansas. The company namesakes, the D and the M and the K, have also grown,considerably. Dennis is now 12, Michael 9 and Katie is six and ready for school. We join together in wishing you all the best for the holiday season and 1982.

ADMK-Pacific Corp.

P.O. Box 7300, 4529 Mattos Dr., suite B, Fremont, Ca. 94537

In Northern California (415) 796-3670

In Southern California (7 t4) 9Sl -m z Redding, Ca. (Billie Gowans) (916)222-3034

Kansas City, Ks. (Bill Cressey) (913) 34r-9522

Hank Aldrich

Lee Doud Andy Haynes Dwight Curran

"Every Stick a Masterpiece"

Dwight Curran

Serving the lumber, building materials and home improvement markets in 13 Western Stafes - Since 1922

DECETBER I 98I

MAJOR NEWS and FEATURES

TURNING POINT SEEN FOR REAGANOMICS

RAILROADS RESPOND TO CHANGING TIMES

NEW LOOK IN STORE FOR HOUSING MARKET

BUILDING DIVERSIFICATION IN FUTURE

HOUSING STARTS DEPENDENT ON CREDIT

PRUDENT GET READY FOR MORE OF SAME

ECONOMIC IMPROVEMENT SIGNALS MIXED

WEST SHOULD BE IN FRONT FOR RECOVERY

SOLID GROWTH IN OUTPUT BY END OF '82

Publisher Emeritus A.D. Bell. Jr.

Editor-Publisher David Cutler

Associate Editor

Juanita Lovret

Contributing Editors

Dwight Curran

Gage McKinney

Al Kerper

Art Director Martha Emerv

Staff Artist Lou Taylor

Circulation

Marge Anderson

The Merchant Magazine (USPS 796-560) is published monrhly ar 4500 Campus Dr., Suite 480, Newport Beach. Ca. 92660, phone 17l41 549-S393. bv The Meichant Magazine, Inc.- Second-class postage rates paid at Newport Beach, Ca.. and additional olfices. Advertising rates upon request.

ADVERTISING OFFICES

FROM WASHINGTON STATE & IDAHO: contact John V. MacKay, 157 Yesler Way, Suite 317, Seattle, Wa. 98104. Phohe (206) 621:1031.

FROM NORTHERN CALIFORNIA & OREGON: contact David Cutler. 4500 Campus Dr.. Suite 480. Newport Beach. Ca. 92660. Phone 014\ 5498393.

FROM SOUTHERN CALIFORNIA: contact Carl Vann, 205 Oceano Dr., Los Angeles, Ca. 90049. Phone (213) 4723ll3 or (714) 549-8393.

FROM THE MIDWEST: contacl Charles L. Lemperly, 1230 Brassie Ave., Flossmoor. Il. 60422. Phone Qr2) 799-2166.

SUBSCRIPTIONS

CALENDAR 20 BUYERS GUIDE CLASSIFIED A2 ADVERTISERS INDEX

Change of Address-Send subscription orders and address changes to Circulation Dept., The Merchant Magazine, 4500 Campus Dr., Suire 480, Newport Beach. Ca.92660. Include address label from recent issue if possible, plus new address and zip code. Subscription RatesU.S. and Canada: $6-one year; $9-two years; $12-three years. Foreign: $14-one year; $20-two years.Single copies $1.25. Back copies $2.50 when available.

THE MERCHANT MAGAZINE is att irtdependentl-v-on,ned publicatiort jbr the retail, v,holesale and disIribution levels o/ the luntber, bLriltlitrg tnalerials ottd home itnprovemetrl btrsirress in the I3 Westertr states.

'UPERI}OU'I of ttrslern Bed Cedor

Next time you have to kick off a big job that calls for Western Red Cedar, make a quick score by calling Fountain first. Our inventory of over 1 million feet, of the finest product turned out by the renowned Tahsis mill, will thrill your customers. A dazzling array of sizes, rough, re-sawn or smooth faces and virtually any detail desired gives you a winning combination of plays. Our STK Totem siding is an especially elfective call for much of the current construction trend.

No order is too large becausewe have the greatest depth of dry Western Red Cedar in the West. .one customer was supplied over 400 thousand feet of the same size, grade and detail. .championship performance in any league. Call on your Fountain special team professionals to get you into the game fast! Ed Fountain Lumber Company 6218 S.Hooper Ave. Los Angeles, Ca. 90001. (213) 583-1381. (714) 97 2-9107

ED FOUNTAIN LUMBER COMPANY

Our money where our mouth is

IrO the better times that most of our contribuI tors to this Business Forecast Special Issue see for 1982, we add our agreement. We also think that conditions will improve sooner and that markets will be stronger than do most of our distinguished forecasters. To back this opinion, we're putting our money where our mouth is. We're starting a brand new magazine. Called Building Products Digest, it will serve the 13 Southern states as The Merchant does the 13 Western states. Lumber dealers, home centers, home improvement centers plus the wholesalers, distributors and jobbers that back them up will be the audience, as it is in The Merchant. In format and concept it will be like The Merchant except that it will carry Southern news where The Merchant covers Western news. Arriving in March, as The Merchant enters its 60th year of continuous publication, the new baby of the company has prompted office wags to comment as to whether a sixty year old should have a baby.

Actually, it was not a question that any of us took lightly. Starting a new magazine is a perilous undertaking in the best of times. That we would go forward with the project as the industry suffers through the worst times in at least a half century, says a great deal about the confidence we have that better times are ahead, and not too far ahead.

As you can find an economist to support almost any view of the future you desire, and given their dismal track record of late, we also relied on our soundings in the industry in making the decision to begin Building Products Digest. Despite the current pall that overhangs us, the great majority of industry people feel a strong future is there. It's just a question of time. We see the beginnings of a turn around in late spring, though you may need a microscope to catch its stirrings. Better times are closer than you may think.

We're betting on it.

SeNing the lunbeL builc!ing materials and home improvement makets in 13 Westem States-Since 1922

DAVID CUTLER ed tor- p u bl i s her

Economic outlook for 1982

81 Dr. A. James Meigs Senior Vice President & Chief Economisr First Interstate Bank

IWOULD like Ito concentrate on one majorquestion: Will the Reagan Program work?

The Reagan Program is a revolution w hich aims to change the direction of the U.S. economy for years to come. It will have major effects in the rest of the world. It is meeting intense skcpticism in financial markets and great hostility and opposition in many quarters. Our conclusion is that there will be significant progress torvard meeting

the objee tir e5 ol' Ihe program in 1982. Wc ricw 1982 as a rurning point.

Improvement in the West's economy will depend largely on

Story at a Glance

The Reagan Program willwork .'82 a major turning point. .. West will do better than the rest of the U.S. some recovery in home building due to lower interesl rates.

A railroad looks at next year

By Richard C. Gralson Presidcnt and Chief ErccLrtirc Olficer Burlington Northern Railroad

/lns THE na- Ftlon-s targest rail carrier of forest products in terms ol revenues and sales, Burlington Northern Railroad has a keen interest in the lumber and building materials markets.

Forest products normally account

Story at a Glance

starts in'82: 1.4 million.

developments in l.he rest of the country and to some dcgree in other countries. The West should do a little better than the resl of the nation, as ir usually does.

The West will be helped by:

A pickup in exports as conditions improve in other industrial countries; an in flow of foreign investment; immigration from other countries; and national economic policies.

Especially, tax cuts, which will benefit high-tech industries and the generally venturesome Western business climate; the relatively large share of the West, especially California in defense contracts; and some recovery in homebuilding, as inflation rates and interest rates come down nationally.

Overall, the Gross Regional Producr ol the ll We:lern states is forecast to increase 1 1.690 over 1981 . . a 3.590 gain in real terms and

for about 20Vo of BN's non-coal revenues each year, and rve serve the forest centers of the Pacific Northwest and southeastern United States.

Nearly 2OVo of BN's rail car fleet is dedicated to forest products shipments. The 24,562-car fleet includes I 3,250 regular borcars; 3,950 specialized boxcars; 2,262 woodchip cars; 1,100 flatcars; 2,500 bulkhead flatcars and 1,500 specialized flatcars.

Burlington Northern reorganized its forest products marketing operation last spring in an effort to respond more effectively to customers and the changing marketplace.

All forest products acti\ ities no$ are controlled by a free-standing

lo puge 52)

Continued housing weakness, with high interest rates some easing of inflation slightly lower mortgage interest rates and more lunds...

Housing market the new look

By John M. Martin Executive Vice President National Lumber & Building Material Dealers Association

lltHEN the UU curtain opens on the 1982 housing market, look for a new cast of characters, new dialogue and cer- tainly a new scenario. Sooner or later there must be a rebound in home building construction because the demand is on the verge of explosion. In part, the difference may be in the way the play is cast. The questionis when. andtowhat level of production?

In home sales, names like Sears Roebuck, Merrill Lynch and National Steel will surface along with names traditionally more common to the market. A quick look at recent Sears activities shows a trend that will undoubtedly be followed by others. Consider:

(1) Sears has long had Allstate Insurance (homeowners packages).

(2) Allstate Savings and Loan belongs to the retail giant (mortgages).

(3) Private mortgage insurance, a competitor to FHA, is hidden in a Sears subsidiary with these types of operations apparentlY masterminded by financing veteran Preston Martin, an "assistant to the Sears president." Observers recognize that Martin is certainly more than just an assistant to the president. Why?

a. Martin was Governor Reagan's savings and loan commissioner.

Story at a Glance

Near future coming up roses . major housing market

(6) What's missing from Sears' bouquet of housing services?-A large home building or commercial construction company. Maybe that decision is just around the corner.

changes

watch role ol Sears Roebuck . . don't ex' pect single digit mortgage in' terest in'82.. no more quick fixes by government.

Coldwell Banker, a prestigious commercial-industrial real estate firm in Los Angeles, sometime ago had gone nationwide by buying established residential real estate companies across the country. EnterSears. . buys Coldwell Banker.

Dean Witter, long a prominent name in the securities market, and a noticeable participant in the money market mutual fund business, is tapped by Sears.

Now look at the package. The scene: a suburban shopping center. Enter Mr. and Mrs. Homebuyer who happen to be among Sears' 26 million or so credit card holders. They are greeted by a friendly salesperson who can offer them all of the ingredients they need to build or buy, finance, insure, furnish and maintain a home.

Far-fetched? Don't discount Sears' intentions, especially when you have the creative talents available in their management headed by Preston Martin. Next . home buying through the Sears catalog. it happenedbefore.

In the meantime, what about the rest of the housing market? What about the retailer supplying building materials to home builders and do-ityourselfers? There is one absolutely sure bet you can make. There will be no "help" from a Reagan-run Washington, D.C. which to me and the members of the National Lumber and Building Material Dealers Association is just great.

The government quick-fixes of the past have gotten this industry deeper and deeper into a dependence syn(Please turn to page 74)

Building for better times

By Harold E. Sand Executive Vice President Building Products Ceorgia-Pacific Corp.

Tr"?."rr*,1:

since the Federal Reserve Board brought an era of easy borrowing to an end, years of real hardship for Western build- ing products marketers.

first house, even if one-third of family income goes to make that payment. Ten years ago, three families in five could have met the test.

We are seeing the most difficult market of the past half century. But we do not agree with those who

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Story at a Glance

d.

b. He was Chairman of the Federal Home Loan Bank Board under Nixon. He created PMI, Inc., a private mortgage insurance company which Sears bought. A talented guy, he will put Sears right out front in the housing market. He is currently an active member of President Reagan's Housing Commission now recommending the restructuring of government houslng programs.

New residential construction has been crippled by rising prices. Three years ago, the median price of a new home was $58,300, a $410 monthly payment for principal and interest at prevailing mortgage rates. This fall, that typical house cost $73,900 and $891 per month.

As a result, less than one American family in four can afford to buY its

Good housing years in the West during lhe 1980s . . manufactured housing about to realize its potential resadential-repair will out' perform housing agriculture a growing market.

Hard work and expertise equal survival and profitability

By Pete Niebling Executive Vice President North American Wholesale Lumber Association

URING

Eour l98l Regional Meeting tour of North AmericanWhol+ sale Lumber Association, we visited eighteen key cities in the U.S. and Canada. The long-term U.S. housing slump has had serious effects for both manufacturers and wholesalers. Thus, there was great interest and discussion regarding the 1982 outlook for forest product markets.

This year there has been a wide range in predicted housing starts for 1982. Those that we have noted run from a low of 1,170,000 to a high of 1,800,000. Ten out of thirteen estimates we have seen are at oneand-a-half million or less.

Story at a Glance

Housing starts in '82 will be 1,325,000 barring a cred:t crunch smaller houses, more multis with basic changes for housing over the next 2 years ... the pickupwill be in the 3rd quarter.

NAWLA's outlook for 1982 housing is 1,325,000 units. We consider this forecast to be optimistic, and it is conditional on the premise that there will be no credit crunch. Should there be serious disintermediation in the money markets early next year, as some economists predict, then we would guess that 1982 starts would

Let's all hang in there!

By Robert D. Peterson Chairman of the Board Palmer G. Lewis Co. Auburn. Wa.

approximate 1,150,000. We do not feel there will be a credit crunch. It should be noted that while interest rates have been very high and housing has been very depressed, we have not experienced the credit crunch like the one in 197 4-7 5 .

Another consideration regarding 1982 housing is that there is every reason to believe that the housing mix will continue to change. Houses will likely be smaller in size, and there will be a higher percentage of multi-units. Thus, the amount of product per unit will decline.

We think that the first half will remain slow with the pick-up occurring in the third quarter of 1982.

Beyond that, we have been suggesting to NAWLA members that the level of U.S. housing will undergo some basic changes over the next two to four years.

We do not believe that true demand is 2 million starts per year and using this figure as a bellwether should cease. The fact is that we met the demand of the homebuyers between 1975 and 1979, and we did not average 2 million starts a year during that period. Remember all those people who couldn't afford to buy but did so because of the inflationary

(Please turn to page 80)

have to carry the whole weight of the battle!

for 1982!

lT LOOKS like Imore of the same

Morethantwo years have gone by since Federal Reserve Chairman Volker and his Board got everybody's attention in the fall of 1979 by jumping the Federal Reserve discount rate all the wav from I I to l2Vo in one single move-. This happened only 19 days after they had raised it to llqo. In succeeding months, the Federal Reserve raised their discount rate all the way up to l4qo and also superimposed a surcharge that quickly rose up to 490. In addition, substantial increases were made in reserve requirements for all lending institutions.

Those gigantic moves, taken in

their entirety, were equivalent to hitting the construction industry right between the eyes with a 2x4! All of this happened more than two years ago. It's just as tough today!

Most of the people that I've talked to in this industry recognize that inflation is an even greater danger than recession. Nevertheless, more and more of us are beginning to feel that "killing" interest rates shouldn't

Story at a Glance

A modest upturn by the middle ol '82. interest rates may come down fasterthan anyone expects run as lean as possable less than 1.2 million starts next year.

I find it hard to remember that the prime rate was only 290 in 1950 and averaged 2-4s/o during most of the 50s. Even during all of the next decade, it only rose gradually up to about 590. Even during the bulk of the 70s, the prime rate was in the 6-890 area most of the time. It didn't start soaring into the stratosphere until late 1979. Then it kept rising right up to 20s/o in April, 1980. That shattering rise in interest rates, between the fall of '79 and the spring of '80, was primarily due to the Federal Reserve action taken in the fall of '79. Everybody in this industry has been suffering ever since.

We don't anticipate that we're going to see any better business prospects in our distribution business between now and next spring. In fact, our management agrees that it will be very prudent to prepare for a hard struggle all through 1982. If some improvement does occur in 1982-and I think it will-then we'll just welcome it all the more with open arms! However, between now and then, as we see it, our main job is not going to be

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Look for the stgnals

By Philip Kuharski Executive Vice President Fidelity Mutual Savings Bank Spokane, Washington

AS THE long term secular trend of inflation in the United States been reversed?

If it has, then all of us who have an interest in the construction, lumber and building material business should be quite optimistic. On the other hand, if that secular trend has not been reversed, there is good reason to be seriously concerned about the very survival of many firms associated with the construction industry. The current, monetary-policy induced recession is intended to be the final nail in the cof-

Story at a Glance

Consumer inflation will be down... residential mortgage financing should average 141/zo/o 15oh - 20o/o im' provement in housing starts ... Some Western areas will do well, but not the Pacific Northwest. fin of excessive inflation. We really won't know if a significant change has happened for a few years, however, there are certain "keys" that can give us an early reading, even during 1982.

Before expanding business aggressively, I would suggest lhat Merchant Magazine readers look for signals that indicate that fundamental improvement in the construction market is at hand.

If union wage settlements in 1982 average 7o/o or less, that would be a positive factor. If excise taxes are increased on such items as liquor, tobacco and gasoline, that too would be a good sign. If the national savings rate equals or exceeds SVzslo of disposable personal income during 1982, then real progress has been

made. If the Federal Reserve follows a steady policy and allows the monetary aggregates to increase within their target ranges, that would be constructive.

On the other hand, if wage rates increase faster and savings are more sluggish, it would be very difficult for the capital marketplace to be oPtimistic about lower inflation and interest rates.

Despite frequent bouts of Murphy's Law, our bank is optimistic that the patience and moderation suggested last year will pay off as we work our way through 1982. Consumer inflation should average 8 to SVzo/o next year compared to over l09o this year. Interest rates should drop accordingly by at least lVzs/o on average. That means that residential mortgage financing will range from l3 to 1690 with a l4Vzslo average for the year. This is not a big drop but enough to bring some life back to real estate construction.

We expect a 15 to 2090 improvement in national housing starts. Most of the gains will happen in those areas with unemployment rates below 890. The Northwest will not be one of those areas, but some other areas in the West should do well.

In summary, the trough in housing starts for the next 3 years is most likely occurring right now. The improvement in starts and total construction activity will be gradual, but should pick up momentum within another year. In the meantime, we shouldn't lose sight of the fact that quite a bit of construction is financed from internal cash and individual wealth. The new tax act will encourage commercial real estate construction even while we continue to wait for improved momentum in the residential sector. But to be honest, the major advice for 1982 and beyond is: Look for the signals of fundamental improvement in the nation's economic health . then you can start planning to make sound profits.

'82 like'81 , but with a stronger finish

By H.C.A. Hunter Director-Sales & Marketing Lumber & Plywood Division St. Regis

'IPTIMISM

1982 is hard to come by after the depressing market conditions experienced during the current year.

We expect the Federal Reserve Board policies to comeunderheavy political pressures during the winter months as business casualties grow.

That, combined with the strong back-log of housing demand, should bring the industry back to more normal activity by the end of 1982. The West should be in the forefront of this recovery.

However, our traditional American ingenuity will be sorely tested in the financial sector as home buyers seek viable mortgage arrangements.

New home construction will plaY a diminishing role in wood consumPtion as strong remodeling and repair activity help pick up the slack. We also see a resurgence in factory built units featuring less living area but in-

novative design. The West should also continue to be a leader in nonresidential light construction activity providing opportunities for idle home contractors.

The entire building products-home construction industry is undergoing a significant change in direction with the near future most likelY to be a period of unsatisfied housing demand. The money arena holds the key to the future for all of us and without aggressive leadership by the saving and loan institutions we can

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Story at a Glance

Entire industry undergoing a signif icant change in direclion money arena holds the key. West will lead return to nor' mal more wafer board, treated wood, and wood combination products.

Yfor

Recoverv, inflation and interest rates in '82

By Dr. Herbert Runyon* Research Officer Federal Reserve Bank of San Francisco

rFHE ECONr OMY appears to have met the technical requirements necessary to qualify as a recession, two b ac k -to-back quarters of nega- tive economic growth, in the second and third quarters of 1981. There is a strong consensus that the economy may continue to languish in the doldrums at least through the end oftheyear before solid and lasting growth in output can be resumed.

But for those industries which are heavily affected by inflation and in-

terest rates, l98l represents the second year of a severe deterioration in output. This is particularly true of housing and autos but no less true of producers' durable equipment. The one sector of the domestic economy to show consistent strength has been consumption spending. Of itself, consumption may sustain the economy but it is the dynamic components of housing, consumer durables, (particularly autos) and

Story at a Glance

The basic economy should turn around in the second half ol'82 .. . no pell-mell retreat of interest rates . . . short term rates in the medium to higher single digit range, long term rates of 11o/o-13o/o seem attainable.

producers equipment that must supply the lift to a recovery.

Looking at the "hills beyond the valley" in 1982, the results of policy actions taken in l98l will begin to make themselves felt. A consistently firm monetary policy in l98l is responsible for a declining trend in the inflation rate, although it is occasionally obscured by random monthto-month movements. As this decline becomes more readily observable, it will act to dampen inflationary exDectations for the future.

- The second stage of the personal income tax cut becomes effective in the second half of 1982. By then, the basic economy should have turned around. The combination of a lesser rate of inflation and the tax cut will have a salutory effect upon after-tax income and thence consumer confidence. Declining interest rates and the backlog of demand for homes

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Greater hardware management skills needed

By Otto Grigg Managing Director Pacific Southwest Hardware Association

-I-Y Those three letters become a big three on the asset side o f hardware stores and home centers projecting the 1982 sales year. Market researchers will note that the "expendable consumer income" for the first time in several years is entering the hardware/home center field.

of available systems that improve accounting, stock control and purchase control. Better use of available sales area by increased display and merchandising area. Better consideration again by use of business systems by product mix and the application of product to demographic make-up.

This last item is a big factor in continued success of the retail hardware./home center operation. Too

often in the past few years inventories have been maintained by owner preference without consideration for the change in community patterns. Adopting purchase and area surveys to promotion and advertising will mean better overall volume performance.

D-i-y

(Do-It-Yourself)

though becomes an overshadowing denominator as homeowners continue to apply their hidden talents to more areas of home improvement. For the next five to seven years this will be a big deciding factor as to the climate for these stores.

Over and beyond the consumer demand will come the "extras" for the retailer. Extras such as better trained employees. Better use of visual aids available to the industry. Better use

Story at a Glance

Hardware prof its in the $Vz-121/z 7" level cash flow not a problem . . . fewer new stores opening older stores remodeling more store taeins with manufacturers.

Advertising and promotion will have to be carefully honed to qualify for budget participation. No longer can traditional patterns be continued with the "merchandising hope" for results. Results will be the bottom line of an applied promotional program. In this we will see the demand to participate in distributor and manufacturer tie-ins. National programs utilizing national tv as a medium will offer a great "circus" benefit to participating stores that by their tie-in will see "consumer admiration" delivered in add-on sales.

Getting and maintaining traffic (no matter what improvement key the retailer might use) will be upper-

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*These are the author's personal opinions and do not necessarily represent opinions or policies of the Federal Reserve System.

Redwood faces long & short term challenges

By Xeith Lanning Executive Vice President & General Manager California Redwood Association

I ISTENING

Ibto predic-

tions of yet another year with low housing starts, redwood suppliers realize they are faced with a challenge.

Though redwood sales have remained strong in comparison to many other building materials, they are of course affected by the current housing market. The redwood mills see this as a two-fold challenge. The short term challenge is to help dealers promote and sell redwood in spite of present economic conditions. The long term challenge is to prepare to meet the demands of the future construction boom when interest rates stabilize at a realistic level.

Merchants have always benefited from the industry's policy of promoting their product at a constant level whether the market was strong

or weak. CRA's advertising, publicity., literature and audio/visual materials all work to create a strong product image and a consistent message.

Redwood has selling power to markets like home improvement, which has remained surprisingly strong throughout the current building slump. The do-it-yourself segment of the home improvement

Story at a Glance

Short term CRA promotes heavily to sell in a bad market long term investments in reforestation, mills and promotional areas to build for long term demand.

market is generally more faithful than professionals and for the most part made up of affluent young homebuilders who will be improving their homes and purchasing building supplies for many years.

More and more successful retailers are taking an active part in attracting the attention of the home improvement market and educating the consumer by training their sales force, passing along literature and using sales materials provided by the California Redwood Association. Do-it-yourselfers, in particular, need ideas, information and sometimes simply encouragement that they con do it themselves. Home improvement contractors need technical information as well as examples of redwood's ability to improve the home. CRA literature is designed to meet these needs.

CRA has also been exploring anew medium to transmit its message.

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A constantly changing economic environment

By William Baugh William E. Baugh & Associates Newport Beach, Ca.

for housing and the wood industry still remain weak. The Federal Reserve has kept money tight and interest rates unbearably high, eventhough inflation has fallen to conservative levels.

Housing starts will probably approximate l.l millionin l98l andcan be expected to recover in 1982 to 1.6 million units (including factory built) due to increased second half activity.

Pent-up demand has been building during the past twenty-four months. Increased numbers of our population are entering into household formation and housebuying age but have been discouraged from buying by high mortgage rates. Once rates come down, this demand will enter the housing market causing home priceg to resume their price spiral

thereby attracting more builders to create unsold starts.

As the double dip in housing arrived, uncertainty has engulfed us but long-range forecasts for overall mortgage markets indicate many factors of the system will respond to new opportunities created in the changing environment.

Story at a Glance

More favorable mortgage financing, both long and short term . 1.6 million housing units the West will have a more dramatic recovery work on your strategies tomorrow.

The national outlook for mortgage financing is becoming more favorable, both near and long-term. Although s & ls and mutual savings banks provided 54s/o of the mortgages during the first half of the 1960s, they fell to only 220/o in 198O. The overall system which involves l5 sectors supplying mortgage funds should, and is, adjusting as the cheap savings that have supported mortgages are eliminated and mortgage rates become more attractive compared to alternative investrnents, drawing capital from sectors other than the thrift industry. As a consequence, the supply of mortgage financing is likely to be considerably more available than is generally perceived at present, and should permit strong housing based support to a cyclical recovery for wood products.

In'the West, our recovery will be even more dramatic than what will be experienced nationally as our growth rates outstrip national averages. The

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1982: a hard year to call

By Bronson J. Lewis Executive Vice President American Plywood Association Tacoma. Wa.

rlHE PAST

I 12 months have been a period of early promise and subsequent disap-pointment for plywood producers throughout the west and nationwide, as well as for many others.

In common with most forecasters across the country, the American Plywood Association's initial view of l98l was for a reasonably upbeat year predicated on the start of a home building recovery within the second half.

Our hopes for a gradual resurgence in demand were abruptly ended by the rapid escalation of interest rates through the summer and early fall to levels that again had a severe impact on the long-suffering home builders and all their suppliers.

Typical ofthe havoc created in the plywood marketplace by the further deterioration of the traditional No. I market, new residential construction, was the depressed state of the industry in the week ending October 31. Of 176 mills nationwide making plywood and other structural panels, 44 were closed and 6l were operating on a curtailed basis.

In the West, 33 mills were not operating and 44 were curtailed out of 108. In the South, I I mills were closed and l7 curtailed.

In more human terms, these closures and curtailments entailed layoffs for 6800 plywood production workers in the West and 3300 in the South. Even larger numbers of sawmill workers were also jobless.

When will housing start to recover? The answer lies largely with Congress, in our view. We feel that the Administration has the right objectives in its bold proposals to curb inflation and offer incentives for economic growth. The major roadblocks preventing President Reagan from implementing his promise of restoring a prosperous America have been the political infighting of recent months, a lack of total Congressional dedication to the Administration's program, and the

uncertainty created by some new legislation on banking.

It's hard to be specific at this time on the likelihood of a housing comeback starting in the second quarter of

Story at a Glance

Housing comeback in the sec. ond quarter is possible. next six months look pretty bleak continued relative plywood strength in non-housing markets more dealer pro. motion in'82.

1982, but such a welcome development is at least possible. Provided the Reagan economic program holds firm and can be put to work, we think there is some chance of a gradual

home building revival beginning in the late spring. Unsatisfied demand for housing continues to grow, and must eventually be met.

As it picks itself up from the floor, the housing industry could reach anywhere from 1.36 to 1.4 million starts next year, again, subject to the availability of more affordable mortgages and the generation of some momentum by the spring. If this happens, there would be a progressive improvement in the business climate for builders, building material dealers and distributors and all building material manufacturers.

Another way of expressing it is that the next six months still look pretty bleak-with some relief for the plywood industry in the continued relative strength of numerous nonhousing markets.

These markets-including home repair and remodeling, nonresidential construction, industrial, and exports to Europe-have prevented a bad l98l for most producers from becoming a total disaster for everyone.

The plywood industry normally relies on housing for between 40s/o-5os/o of its total market. When housing is down 3590 (as it has been this year) then plywood volume

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Politics temper lumber output

By H.A. Roberts Executive Vice President Western Wood Products Association Portland, Or.

+HROUGH

I the years, those of us who have forecasted supply and demand for Western lumber could count on almost sure-fired success. As the economy went, homebuilding and Western lumber were sure to follow. If the economy suffered and housing fell, we could count on federal pump-priming with housing subsidies and the like. Demand was always just around the corner. At times, that demand would even stretch our ability to supply. Today, those using the typical past as a roadmap find themselves miles off course. Today, the roadmap is called supply-side economics, and

there aren't many who know where we are heading.

More critical, it's also a new chart for those in the nation's capitol and there is a question now as to when relief may be expected. At the time of this writing, we are getting mixed signs from Washington in regard to monetary policies and fiscal plan-

Story at a Glance

Total U.S. lumber consump. tion up 7o/o naxlyear. fewer single family starts . . . more mobilo homes Western fumber shipments up 7o/o in '82... Canadian imports 30o/o of total consumption.

ning. And, the signs are resulting in disparate forecasts.

Witness the housing start calls for 1982. The bears are calling for 1.3 million starts next year. On the other hand, some of the prestigious forecasters claim 1.6 to 1.7 million units will be built in 1982.

It would be a most pleasant task to predict 1.6 or 1.7 million units, but those numbers are unrealistic. Even our forecast of 1.4 million units for 1982 is based on some assumptionssome might even call them hopeswhich stand a good chance of becoming reality.

One of those assumptions is that the industrial sector will pull in its horns on short-term borrowing. This should help relieve pressure on interest rates. Recent actions by the Reagan Administration and Congress point to some scaled back spending for the military as well as additional cuts in social programs. We hope these moves will lead to less of a deficit and, in turn, a slackening in demand for money by the federal government. This, too, should help relieve pressure on interest rates.

There is also a political assumption we're making. That is, the Federal Reserve Board will be reluctant to push the nation into a full recession by continuing indefinitely tight monetary policy. Recently, we've seen a loosening of the reins. We hope that after prudent judgments and discussion, credit will be loosened further.

It is likely that less than 1.2 million units will be constructed in 1981. That means only 10.7 billion board feet of lumber will be consumed in residential construction this year, as compared to 16 billion in a normal year.

In 1981, residential construction will use 34s/o of U.S. total lumber consumption. Two years ago, 40s/o of U.S. consumption was used, and there hve been years as high as 44s/0. The slackened economy has caused other use-categories to be revised downward.

Specifically, l98l should end with other new construction accounting for 5.65 billion b.f., repair and remodeling at 7.75 billion b.f., materials handling 3.9 billion b.f. and all other uses three billion b.f. Exports should come in at 1.8 billion b.f.

Looking at 1982, we expect total U.S. lumber consumption to be up seven percent in 1982, a total of33.2 billion b.f. That's 2.2 billion more feet than will be used in 1981. WWPA sees 1.7 billion of that in-

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Stronger particleboard D-l-Y sales expected

By Robert E. Dougherty Executive Vice President National Particleboard Association

Tf*?r'i1.; F

MDF industries are affected in much the same way as the rest of the forest products industry . . and that is not good at this writing.

The housing market disaster has made its impact on particleboard and MDF sales, especially in some of the western states where particleboard sales have traditionally been stronger than in many other parts of the country due to greater familiarity and acceptance of the product.

Manufacturers are trying to grab as much of the DIY market as they can, recognizing that home repairs, remodeling, and fix-up is stronger in a recession economy than other segments of the marketplace. StePPed up activities involving shelving, home plans and projects are being utilized.

But the forecast is not good. One of the most important considerations-and this is almost a Paradox-is that while demand for the product has lessened, supply has also lessened because the raw material from which particleboard and MDF is made-chips and shavings from lumber and plywood mills-is often being used for fuel.

In addition, many lumber and plywood mills have temporarily shut down or are on a reduced shift, meaning that the amount of shavings and chips available is much less than is desirable.

What this has done is to put supply and demand in much better balance than might have been expected.

In the Western states, the particleboard plant capacity is estimated to be approximately 1.8 billion square feet (3/4" basis), while the rest of the country accounts for a little more than 2.1 billion square feet. We estimate that 1981 production for the two regions will be about 2.8 billion square feet. For MDF, the industry's total plant capacity for medium density fiberboard is 668 million square feet with 235 million in the West and 433 million in other states. l98l will probably be about 470 million square feet of production.

California, Oregon, and Montana account for almost all the western capacity of particleboard and MDF; New Mexico and ldaho between them account for less than 150 million square feet, or about seven percent.

Sforyat a Glance

Demand is off as is the supply of chips and shavings . . . on and off closing ol plants probable . . . llmlted production in first half sales affected by promotional opportunities.

Like everyone else, it is difficult to predict what 1982 will hold for manufacturers of particleboard and MDF and for the distributors and retailers who serve the market. If possible, manufacturers are going to keep their inventories down even if it means on and off closings of the mills; there will be limited production throughoutthe first halfof 1982, and there will be a general wait-andsee, close-to-the-vest approach throughout the year.

An important consideration is that no new plants have been built for awhile and, generally speaking, the market has stabilized in terms of buyer-seller relationships. The only real change that will occur in the particleboard and MDF markets in the future is if housing really takes off to the over two million starts that have been constantly predicted and new plants start to see the light of day.

That's awhile off however, and merchants today must be concerned with the merchandise available. In that regard, the Western states-as well as some others-are in an advantageous position. It is axiomatic that the closer markets are to the sources of supply, the easier it is to serve them-regardless of the industry. The key to particleboard and MDF sales will be the awareness and promotional opportunities that exist with particleboard and MDF especially in light of the severe plant closings suffered by other segments of the forest products industry.

Strong western market in'82

By Thomas R. Ingham, Jr. Vice President:Marketing Simpson Timber Co.

IJOME-

ford a median priced home when mortgage interest rates are at 150/0, it's no wonder starts have dried up!

It's our feeling that mortgage interest rates will have to be in the l39o to l4t/o range before homebuilding resumes healthy levels. That may not happen until 1984, given the credit crunch in this country.

flbuilding

in the west will improve much better in 1982 than in any other region in the country. That's welcome news indeed for all of us dependent on the home-building segment of our. economy.

Simpson is forecasting a 3l9o increase in Western starts, from 28,000 units this year to 325,000 in 1982. That compares to a 12.6s/o increase nationally, 6.890 in the south, 8.390 in the northeast and 9.790 in the north central. Nationally, we see starts moving up from 1,155,000 in l98l to possibly 1,300,000 next year.

Another bright spot in 1982 will be an even stronger market for remodeling and repair of existing homes. We look for a9.6s/o increase to a total of

Hardwood Outlook

By Larry R. Frye Executive Director Fine Hardwoods/American Walnut Association

IIHE veneer

I business is fair at best. The high prime rate, and increasing labor, produc- tion, and raw materials costs make it difficult to "make a buck. " However, as our European counterparts will be quick to say, the situation could be much worse.

The veneer business is slow in Europe. Demand for United States species has almost stopped. The strength of the United States dollar in light of a general recession in Europe has caused United States manufacturers to look entirely to the domestic market for shipments. Supply and demand figures are following with the textbook concepts.

$55.7 billion. Almost two-thirds of that will be spent by homeowners on their own single family residences. Clearly, homebuilding on the national level is in for a slow rebound from the current depression. It's no secret that lower interest rates are the key to an improvement in homebuilding. When you realize that only I l9o of the population can af-

Story at aGlance

More home building in the West than any other region. even stronger market f or repair and remodeling . . ever an. creasing government borrowing in money markels a big factor in housing.

As much as we are hurting, we feel that President Ronald Reagan's economic program is the best longterm solution for our industry and the country as a whole. Additional federal budget reductions are essential to lowering the deficit, the need for government borrowing and a reduction in interest rates.

Federal Reserve Board data shows very clearly why we're in the mess we're in. Of all credit used annually by non-financial institutions over the last 30 years, about 2890 went into housing during the first 15 years and about22t/o annually during the latest l5-year period. But look at the federal government. It's share of total credit rose from an average of 790 annually in the five years ending in 1969, to I I 9o annually the next five years to 23o/o in the five years ending 1979. Of all borrowers only the

(Please turn to page I6)

Walnut lumber is soft to fair depending on whom you ask. The consumer popularity of walnut seems to have a way of sustaining its demand even during troubled times.

While business is slow now and is expected to remain slow through portions of 1982, the real concern is for the future. Raw material is expected to be the real problem, because it is a low priority item to landowners.

As we look into the future, we feel that hardwoods will continue to be readily available, but the quality problems will continue. The challenge to foresters and landowners is almost frightening. Somehow, we have to motivate the people who own the land growing hardwood timber to do a much better job of managing the trees.

Whether the industry can keep up with the money market and the high prime rate is questionable. Whether or not anyone can keep up with the prime rate is questionable. This is one of the most serious problems facing the industry. With the high prime rate and the business slow, demand for timber is likely to soften slightly. Hopefully, the prime will comedown in 1982, and at the same time, let's hope inflation will be lowered, so this country can return to a somewhat

stable and normal econornic situation again.

I am optimistic that the future for hardwood lumber and veneer is excellent. We all know that the children of the population explosion that occurred in the late 1940s have now moved into the prime buying age bracket. They will be buying homes and they will be filling those homes with furniture. With all other factors being normal, we expect excellent business throughout the 1980s. By the timethe war babies move onto an older age bracket, where they may not buy so much, we will be more into a worldwide market, which again should brighten the prospects and opportunities for timber growers and the hardwood lumber and veneer industry.

Story at a Glance

Veneer sales slack . .. walnut still popular raw material supply a serious Problem for the future excellent business throughout the'80s.

Canadian Forest Products ttd,.l:cr::rr,lttg;,,,,.''subsidiary,C-anf or Corp., plans to buy Chandler Corp., Boise, Id.; acquisition is set for this mo., no price rcvealed . . Senate Appropriations Commit tee v oted to terminate the U.S. Metric Board, causing spculation that metric conversion has hadit...

Weyerhaanser plqs to appeal an apdlate court refusal to overturn the guilty verdict in a "phan- tom" freight rate conspiracy case that also includd Georgia-Pacific and Willamette Industries

Andersonia Forest Products moved its Medford, Or., offices to nearby Phoenix, Or. .- . . Diamond International Corp, is mO n A t n ref&Arrc ilA I LAfpi:,:,';18 probing the -possibility of,,r:,':Sh James Goldsmith, a British financier who controls Cavenham Holdings Inc., taking over . Pella Products ofArizona, Inc. is ..-

,tg$ :,mlo s largsr t$on:", UntmPrcit trto S $S nillign_c{

Tlne Importd Hardw@d hr,ducts Association will become International Hordwood Prodttcts Asociation if the manbership approves Victor Posner, Miami, Fl., financier, has plrrchased 150,000 shares of Evons Products Co., Portland, Or., for 43q6'".',";1..11,1:.'1:

$3,288,750 in open market to raise his holding from 41.990 to

t't'''' p,&;,fu'ttifuourco., Redding, Ca., is rapidly expanding its confmercial wood products div., accorditrg','16 Rick Cua &am, sales mgr. . . . Crgm,,',:,,'::Fbigst L:umber Co,, a wholesale opera,,, i',b-as been opened in Auburn, ',5 :$Y;,},H. Bruce .Sutherland Lumber, City of Industry, Ca., ha$ri feorganizgd,,':and: added a gardencenter...

Home Lumber Yord, Inc., Turlock, Ca., pres. Tom Reeser, has announced plans to close . . Bassett Lumber Co., Douglas, Az., filed a petition for bankruptcy Ernst Home Center, Eugene, Or., is converting to a BiMart membership discount store, :,, &ccording,,to Pay'N Save Cog., parent co. for both . .

L ouisiana- Pacific is planning to build a Waferwood plant in the Interyxryntain region of the:U;$,r''

dedtne,

Your Sights

7653 Telegraph Rd. Montebello, cA 90640 (213) 723-3301 r (714) 994-6240

1576 South 300 West salt Lake city, UT 84115 (801) 484-7616

DECEMBER

Portland Wholesale Lumber Association-Dec. 19, annual Christmas party, Jantzen Beach Red Lion Motor Inn, Portland. Or.

JANUARY

National Association of Wholesaler-Distributon-Jan. t-12. annual meeting, The Canyon Hotel, Palm Springs, Ca.

Los Angeles Hardwood Lumberman's Club-Jan. 14, lunch meeting, Steven's Steak House, City of Commerce, Ca.

Budrow & Co.-Jan. 17, Fiesta Days annual show, 14030 Gannet St,, Santa Fe Springs, Ca.

National Housewares Manufaclurers Association-Jan. 1E-21, 76th semi-annual housewares exposition, McCormick Place/McCormick Place West, Chicago, Il.

930 Ashby Ave. Berkeley, CA 9471 0 (41 5) 843-4390

Main 0ff ice 2150 Oakdale Ave. San Francisco, C494124 (415\ 647-0782

Western Wood Products Association-Jan. 1E-22, district meetings: Jan. 18, Coeur d'Alene, Id.; Jan. 19, Bend and Eugene, Or.; Jan. 20, Sacramento, Ca.; Jan.2l, Phoenix, Az.; Jan.22, Portland, Or.

National Association of Home Builders-Jan 22-25, 38th annual convention & exposition, Las Vegas, Nv.

FEBRUARY

Constructa'E2-Feb. 3-l0i international building materials fair, Hanover, West Germany.

National Woodwork Manufacturers Association-Feb. 6-11, 55th annual meeting, Kauai Surf Hotel, Kauai, Hi.

Mountain States Hardware & Implement Association-Feb. 7-9, convention, Antlers PlazaHotel, Colorado Springs, Co.

Los Angeles Hardwood Lumberman's Club-Feb. 11, annual gag awards night, Stevens Steak House, City of Commerce.

College of Hardware and Home Center Knowledge-Feb. 11-12, Fiesta Inn, Phoenix, Az.

California Retail Hardware Assoclation & Western States Hardware Show-Feb. 2E-Mar. 1, annual convention in conjunction with show, MGM Grand Hotel, Reno, Nv.

MARCH

National Roofing Contractors Association-March 2-5, 95th annual convention and exhibit, Los Angeles, Ca.

American Wholesale Hardware Co.-March 7, sales galaxy, dealer hardware and sporting goods show, Long Beach Convention Center, Long Beach, Ca.

Weslern Wood Products Association-March 9-12, spring meeting, St. Francis Hotel, San Francisco, Ca.

Imported Hardwood Products Association-March 10-13, annual convention, Rancho Las Palmas, Rancho Mirage (Palm Springs), Ca.

Los Angeles Hardwood Lumberman's Club-March 11, annual secretaries luncheon. Stevens Steak House. Citv of Commerce.

quickly; won't shrink; takes spirit stains, and will not gum up sander. Waterproof and ano wilt nol up sanoer. YYaterpr weatherproof when properly applied. Availeble in 16 matching wood colors rnd white.

Want to see your organization in print? Send us information including date and place on your next meeting, convention, or social event for the Calendar. Please make sure that we receive it at least six weeks ahead of the date and be sure to include your name, address, and telephone number.

CONTEMPORAFlY BUILDING PFIOOUCTS, INC.

is a distributor for Caradco Wood Windows and The Atrium Door@ by Moulding Products, Inc.

The Atrium Door@ combines energy efficiency and practical ity. Replacement of existing sliding glass doors is a simple job for do-it-yourselfers.

We offer immediate delivery from a centrally located and well-stocked warehouse. Job site deliveries in Southern California metropolitan areas.

Call us about our special offer on display units.

CHUCK LINK executive director

ftO-On advertising has been a sucYcessful wav lbr a retailer to maximize his advertising impact at a lower cost. Listed below are eight steps retailers can pursue to obtain the greatest amount of dollars possible for advertising.

(1) Assume that co-op ad dollars exist and are there on every product you buy.

(2) Do not buy merchandise without making a deal sheet out for every vendor and keeping a simple running total of your accruals. You know how much you've purchased. You know what you paid for the merchandise and what types of discounts you've received. It's a very simple matter to add the element of how manY co-

op ad dollars accrued on that purchase.

(3) Question every sales rep on how much co-op has accrued as a result of that particular purchase at the point of purchase, whether it be on the phone or in person.

(4) Keep an alphabetical file of all coop programs available to your store. Road maps are always important and your master file of coop contracts is your map to what, when, and how money is available.

(5) Post a calendar showing co-op purchase periods with expiration dates marked off on that calendar, so no co-op dollars go uninvested.

(6) Set a system to use co-op dollars in tandem with price point reduction. Remember. whenever there's a manufacturer's cost reduction on a product to you, 90 percent of the time there's also a co-op advertising program to complement it. This combination allows

you to advertise significant savings to customers without reducing your gross margin.

(7) Don't be fooled into thinking that because you have only made small purchases, not much co-oP will accumulate. Many manufacturers in your industry have 50/50 and even 75/25 unlimited programs. Funds are available, including special over and above co-op allowances, even though small amounts of a particular brand name product are purchased.

(E) Ask ask ask! Especially ask for co-op funds at seasonal markets, trade shows and regional buying shows, etc. You'll be amazed at the money offered you.

In Washington as of Oct. I, corporations may choose to exempt corporate officers from state unemployment compensation. To qualify for this exemption, the officers must have been elected by the board of directors, and if they elect not to be covered, the election must include all officers. The election will remain effective until written notice to reinstate coverage is sent to Employment Security. Electing the exemption could save your corporation a maximum of $1,14.00 per officer (based on l98l tax rates and annual wage bases) per year.

ARIZONA SGENEqP

FRANK DAVIS executive vice president

ONGRESSMAN Eldon Rudd has tTintroduced a bill to help bring the housing industry out of its present dilemma. Concerned with national home building bonds, the proposal will:

(1) Provide adequate mortgage money at an affordable rate for new home construction.

(2) Stimulate the home building industry and put thousands of construction workers, now laid off, back to work.

(3) Provide a new source of private capital for lending institutions

such as savings and loans and banks.

(4) Accomplish all of these things without a dollar of federal money; placing no new burden on the treasury.

Other housing bills are being introduced in Congress. I am sure one will emerge that will help our industry out of the housing slump, although high interest rates are the main cause of the problem.

In conjunction with the first quarter board of directors meeting held in Sedona, Az., on Sept. 13 and 14, ALBSA honored Jay O'Malley on his retirement. James Magbee, pres. of NLBMDA, was an honored guest to pre-

sent two awards to Jay at the banquet, the president's award from ALBSA as well as one fiom NLBMDA.

A two-term pres. of ALBSA, Jay has spent his entire life in the lumber business including his service in the U.S. Air Force during World War II when he was in charge of the allocation of lumber and plywood for all bases and depots on the West Coast. He is a past president of the National Lumber and Building Material Dealers Association, the only Arizonan to ever hold this office. While serving on the Handling Committee, he was responsible for obtaining a 250/o reduction in freight rates on lumber shipped into Az.

His services to his city, state and nation have been legion, not only through the lumber industry, but also in his tireless religious, social, political, civic and sports activities.

The members of the Arizona Lumber and Builders Supply Association wish to thank Jay O'Malley. His contribution to the lumber industry has been invaluable.

HOME GELNTER MERGHANT

BILL FISHMAN

Bill Fishman & Affiliates

11650 lberia Place San Diego, Ca.92128

I'M OFTEN asked what does the term I"merchandising an ad" specifically mean? I answer this question with an instance that occurred over 15 years ago when I was the director of sales promotion for a national home center chain.

The buyer walked into my office and said, "Bill, I just gambled on a helluva buy. I'm bringing in acarload of vanities. There's no room in the warehouse and my goal is to move them all out over the weekend. I've negotiated for enough cooperative advertising funds to run a full-page ad but I need your help in working out a program to merchandise the ad to be sure that we've got a sell-out' What do we do?"

Well, the first thing we did was schedule a two-color page ad in the Thursday nieht paper to run during the week that

the merchandise hit the stores. We then arranged to have the center promotional aisles cleared for the total vanity display. Fact tags and price tags were made to hang from each vanity showing the features, benefits, regular price and sale price. A banner was produced to hang above the entire vanity display. When the customers walked into the store they just couldn't miss this mass display down the center aisle.

The store received the proof of the ad so that they could grasp the size and dramatic presentation of it. The buyer then sent out bulletins telling all store personnel about his upcoming major event and what the store could expect in the way of vanity and accessory sales if they merchandised the ad correctly.

Before the ad actually ran, a telephone conference call was arranged to again emphasize the importance of this promotion and what it would mean to that department in the way of sales and profits.

Everyone from the receiving clerk to the cashier knew about the sales event and his role in keeping the floor inventory full and neat during this planned, three-day promotion. The store personnel were given an incentive program that all employees would share in if the store reached the total sell-out goal.

By Thursday evening the store was set and ready to greet the vanity customers. It worked. Monday morning the store reported a complete sell-out. It was one of the biggest weekends ever recorded for that key of the register.

What makes this story interesting is that the newspaper lost the ad. It never did run. Think about that for a minute. By the way, how ready is your store for next week's ad?

Stop Theft of Vehicles

Identification numbers sandblasted in highly visible locations on vehicles can prevent theft.

A special tool etches on glass and metal by blasting a grit through a template making it harder for thieves to sell marked parts.

Cost of the easy to use system is about $20 per vehicle marked.

HARRY MENDENHALL executive vice president Lumber Merchants Association of Northern California 1055 Lincoln Ave. San Jose, Ca.95125 (408) 295.4103

ITHERE IS no way to describe rhe r present overview of business. Visits to dealers in the Northern California area show many different descriptions of business activity.

In some areas, both contractor and walk-in trade are as flat as they could possibly be. Other areas indicate no contractor business but an increase in walkin trade. A few isolated areas report an increase in contractor trade. The increase in some areas is due to lifting of moratoriums, coastal zoning changes, and home builders with cash from large metropolitan areas locating near lakes or mountain resorts.

It appears to be a time for those who have and those who have not. Wealth is beginning to play an important role in home construction. With the price of building materials falling and builders looking for any small job, it is a home builders market. That is, it is a market for those not requiring a mortgage to build. For those with cash available, it is the time to build.

Many dealers, who previously developed the flexibility to move towards either contractor or do-it-yourself trade as the situation demanded, find themselves in an enviable position. Business is still sufficient to make a small profit even though they have had to trim excesses from staff and bring in a strong program of economic efficiency.

Companies who have not kept pace with the changing industry, particularly those who feel that attendance at workshops, seminars, and management information sessions is not necessary, may find the business climate a bit difficult at the present.

While some dealers may scoff at attendance at management seminars, progressive dealers realize that information is essential and the side benefit of discussing problems and conditions with other dealers is vital to their existence. Those dealers, continually seeking the exchange of information and ideas, fully understand that when economic conditions are such as we currently have, the knowledge they have obtained pays off.

One of the most important attributes of the LMA is the enthusiasm and willingness of dealers to openly discuss their operations with each other. This makes every participant a stronger person and a stronger businessman while giving tremendous strength to the association. Whenever members of an industry develop the rapport that we find in LMA, the resulting strength perpetuates that group.

This is the time to participate in every gathering of the industry group. It may seem difficult to meet the challenge of this recession alone, but the outstanding group strength will permeate each individual. Don't try to stand alone.

0UTGOING PRESIDENT (1) Jim Magbee awards plaque to Paul Netemeyer. (2) Everette Cupit, John Garten. (3) W.0. & Blanche Smith, Claire & Doug Ashy. (4) Homer, Hope, Bill & Nancy Hayward. (5) John Sayer, Marge Witlnebel. (6) Sid and "Hank" Voorhees. (7) Lew Beach, Emily Weldon, Joan Beach. (8) David & Cynthia Christesen, Ray & Befty Treen. (9) Bobby & Eileen Butler, Wanda and Roger Hough. (10) Wally Ste{fan, lrv Dellinger. (1'l) Mike & Teri 0'Malley. (12) Al & Bernice Newkirk, Joan Winward, Dick & Judy Carver. (13) Fred & Ellen Caruso. (14) Jerry Jewelt, ir., Ralph Norman. (15) Carol and Dave Patterson. (16) Saint Clair Bienvenu, Pete Bowers, Jr., Ray Harrell.

lltITH A HEARTY Western UU welcome from the Mountain States Lumber Dealers Association, celebrating its 90th anniversary this year, the National Lumber and Building Material Dealers Association met in Colorado Springs, Co., to convene its 65th annual convention.

Western togs were the order of the day as the first major event on the program, a "Welcome to Col-

National dealer group meets in the Colorado Rockies

orado" Western reception on November l, kicked off the five day meeting, held at the Broadmoor Hotel.

Senator Jake Garn (R-Utah) spoke at the formal convention opening next morning, warning that the industry needs "long term solutions to housing problems, not Band-Aids." He described to the 500 delegates the proposed restructuring of the nation's thrift institutions which Congress is currently pondering and said that Reaganomics was working but that it will take time.

Describing the federal budget as "out of control," the conservative

Westerner said that the so-called tax cut was in reality merely a reduction in the increase in federal spending. Further across-the-board slashes in federal spending are needed, he said, noting that sacrifices for all were in order as both good and bad programs must be cut.

There followed a varied and extensive program that followed the convention theme of "Let's Build America." Among other program features:

A talk by Richard Carver, the Mayor of Peoria, Il., president of the Carver Lumber Co. of Peoria and a member of the President's Commission on Housing. He said

that the commission's philosophy was that only the truly needy should receive government assistance.

"The important question to

Story at a Glance

Effects of government spending, expectations for 1982, what to do in a poor market...

Doug Ashy elected president ... next year's meeting: Orlando, Fl.

citizens," he asked, "is how important is housing to us and what are we prepared to pay to house our people."

A panel of two economists and a lumber dealer followed, discussing mortgage money. Kenneth J. Thygerson, Western Federal Savings and Loan, Denver, said that housing had slipped as a government priority. He noted the financial sickness of the savings and

(Continued on next page)

LOUISIANA dealer (1) Tommy Hatfield and Kent Brosh, a local Colorado Springs retailer who was part 0f the welcoming group. (2) Harry Mendenhall, mgr. of the No. Ca. dealer assn. and Frank Davis, mgr. 0l the Az. assn., Ed Sembell. (3) John & Doris Martin. He's the managing officer oJ the national group. (4) Jim Gentry, Eill & Verna Strelow. (5) Rick Russell. (6) Dean Leaman, Tom Yager, Jefl Chapman. (7) Chuck Krothe, Carl Dill, Courtenay Weldon, Mike McClelland. (8) Robert & Rosemary McMonagle, Jean & Pat Mc0ormick. (9) Bill Fishman, George Milne. (10) Richard Bullack, Esther & Otto Bauerle. (11) Bill Payne, Bob John.

(Continued from previous page)

loans, observing that their inability to supply money for housing means the industry will have to work to get private pension funds to invest in mortgages.

Dr. Thomas Harter, chief economist of the Mortgage Bankers Association, said that mortgage bankers now have a quarter of all home loans and are outdistancing the savings and loans. He feels the best way to lower the interest rate is to cut government spending, thereby reducing their need to borrow in the capital markets, which has sharply raised the cost of borrowing for all. He forecast a 150/o-160/o mortgage rate by the end of the year dropping to l3s/o-l4c/o by June, when the prime rate could be at l3o/o or lower.

Dealer Roger Scherer, president of Scherer Bros. Lumber Co., Minneapolis, Mn., urged caution in lobbying for fear that "we create more problems than we solve." He also described pension funds as an ex-

cellent source of mortgage money for housing.

A later panel, moderated by Pat Coleman, editor of Building Supply News, discussed market positioning and a variety of ways to cope with today's market. She said that dealers should examine do-ityourself to see how they could best profit from this growing market segment.

Panelist Tom Lusker, Hardware Wholesalers, Inc. related steps of strategic planning. Among them: company goals, margins, turnover, personnel training, store modernizing and situations analysis.

Florida dealer Joel Ashe, Causeway Lumber, related the steps they had taken to tighten company operations and summed up his own talk by saying, "Watch what you sell and who you sell it to."

California retailer Homer Hayward, Hayward Lumber, Monterey, Ca., told how they had retained their good people for the return of better business conditions and had worked to relieve managers of detail burdens so they had more time for management functions. Incentive

and bonus programs are also being improved.

Ken Nelson of Colorado's Everitt Lumber, now a Weyerhaeuser Co. subsidiary, said, "We're back to basics. Survival requires astute analysis, planning and execution." He warned, "Don't become a selffulfilling prophecy by reacting to bad times by cut backs which hurt efficiency and profits." He said accounts receivable were a key to surviving 1982.

A later marketing and merchandising committee meeting speaker was Hal Sugarman, Building Supply News, who said that audio/visual equipment was essential for training and sales. He warned that "you can't buy it and forget it. Assign someone to be responsible for it and make sure it's used properly."

Lowell Jackson, LaBelle Industries, said their survey of a/v showed it used most for consumer product knowledge and that a/v weaknesses included poor and/or overlong films. He said the shorter the film the better for point-ofpurchase use, while d-i-yer films

(Please turn to paee 3l)

Rolando Lumber Co.. Inc.

COLORADO MEETING

(Continued from page 28) must impart confidence to the prospective customer.

Luncheon speaker next day was Forbes Mogozine editor-in-chief Malcolm Forbes, Sr., who had a cautiously upbeat view of the economy. "Interest rates will decline surprisingly fast, things will be looking up."

He forecast a prime rate of l59o by mid-December saying that the lower rates will induce greater buying which in turn will return inflation as a major concern in 1982.

Douglas E. Ashy of Lafayette, Louisiana, was elected president during the annual convention.

President of Doug Ashy Building Materials, the new chief elected officer of NLBMDA succeeds James R. Magbee, president of Magbee Brothers Lumber and Supply Co., Scottdale, Ga. Magbee became chairman of the board of the association which represents some 15,000 lumber and building material retailers through 25 federated state and regional associations.

Other officers elected were: first

v.p., P.B. Howe, Carver Lumber Co., Peoria, Il.; second v.F., William R. Morrow, Morrow & Sons, Inc., Lawson, Mo.; treasurer, Dean K. Leaman, Home Building and Lumber Co., Rosenberg, Tx.; secretary and executive v.p., John M. Martin, Washington, D.C.

Five regional vp.s elected were: Howard Guss, Garfield Mill Inc., Jersey City, N.J.; Ralph Norman, Slagle-Johnson Lumber, Inc., Monroe, La.; Patrick McCormick, McCormick Lumber & Fuel Co., Madison, Wi.; Gerald Jewett, Jewett Lumber Co., Des Moines, Ia.; and Keith M. Ker, Max Ker & Son Lumber Co., Idaho Falls, Id.

A highlight of the convention was the announcement by NLBMDA that the organization would move into new quarters on Capitol Hill in a building purchased by the association two blocks from the Nation's Capitol.

In assuming the top elected position, President Ashy stated that this Association and its Federated organizations provide the coalition necessary to assure that the country's building material retailers

have their positions heard in Congress and with the Administration.

(Continued from page 16)

federal government has disproportionately increased its credit share during the 70s.

We also support the other elements of the Reagan program: tax reductions to spur investment, restraint on the money supply and reduced federal regulation.

At Simpson, the current downturn has been the most severe since the Great Depression. We have met this challenge by slashing costs wherever possible. Although our lumber, plywood and door plants have taken some down time, we have fared better than many of our competitors in our efforts to keep our people working. This is the result of past capital investments that have made our plants modern and efficient.

We also have maintained those programs that are essential to our long term future. We are confident that better days are ahead and we'll be ready to provide our customers with the high quality products and service that have been a Simpson trademark for over 90 vears.

Hardwood plywood should participate in improved market

By Clark McDonald Executive Vice President Hardwood Plywood Manufacturers Association

TYE HIGH

r lnterest

rates which have brought about a recession for housing and other industries have affected the hardwood plywood manufacturers, the importers of hardwood plywood and the prefinishers of hardwood plywood.

We expect l98l domestic production to be at least 5q0 less than 1980, a year that was also considered depressed. Imports of hardwood plywood for the first half of l98l were approximately 1.37 billion sq. ft., surface measure. In the last two years, more than I 5 prefinishers have closed plants in at least ten states.

The National Association of

Home Builders estimates that only 1.08 million housing units will be built during 1981. In 1982, NAHB is forecasting total housing starts of 1.27 million with the hope for two million housing starts in 1983. With the trend toward larger homes coming to an end, smaller houses will mean less hardwood plywood for

Story at a Glance

Domestic hardwood plywood production will be off at least 5olo this year remodeling now a bigger market for many of our members than new housing.. smaller homes will use less hardwood plywood.

flush doors, cabinets, wall paneling, furniture, flooring, etc.

For the first nine months of 1981, mobile home manufacturers shipped 190,177, compared to 163,623 for the first nine months of 1980. The Manufactured Housing Institute is optimistic that the industry will perform well during the next few years because of lower costs associated with manufactured housing as compared to on-site housing and because of improved land use and zoning policies.

The remodeling market is larger than home building for many hardwood plywood products. Remodeling will probably show better growth as compared to new on-site home construction.

The National Kitchen Cabinet Association is now promoting the use of standard kitchen cabinets in other parts of the home. Some cabinet manufacturers have added bookshelves, wall units, stereo cabinets, wet bars, etc., to their cabinet lines. This may be one of the keys to selling more hardwood plywood to the kitchen and vanity cabinet manufacturers. The European cabinet influence is strong, and domestic manufacturers are using

(Please turn to page 37)

TFROUI|DS cAll'rFIilDh; THERE15 STILIHOPE.

But chances are, you'll never have to make that person-to-Person call.

Because at Rounds we've vowed to be the ones who find what others can't. And do what others won't.

Redwood grapestakes? Sure. How many?

Timbers up to 32-feet long? You bet. Where do you want them?

Unusual orders. Mixed shipments. Delivery on the double. They're all part of our daily bread.

All of which explains our coast-to-coast reputation as something of a godsend.

But what you'll like best of all is how our uncommon approach to unusual orders carries right over to the everyday stuff.

Like green redwood in all grades. Dry redwood uppers. And redwood fencing. With all standard redwood patterns available.

Or our line of finish fir, including flooring. Pine deck-

ing. And our comprehensive remanufacturing capabilitie s. They're all delivered with the same Rounds hustle that built our reputation. Rounds. Underthebest circumstances we're a good place to start. And when you don't think you stand a prayer of finding something, we're the next best thing to Divine Intervention.

Let us know how we can help.

In Northern California, call 800-8 62-4668 or 800-862467 7. In Southern California, it's 800-862-4994. All other locations, call 800-358-9134. Louisiana-Pacifi c Corporation, Rounds-Cloverdale, Box 9Z Cloverdale, CA 95425.

lmproved California market in 1982

By Tom Graves Vice President & Economist Security Pacific National Bank Los Angeles, Ca.

aFfALIFORNIA should experi- Yence more rapid economic growth in the second half of 1982 after rather sluggish performance this year and the first two quarters of next.

prisingly low 7.190 this year but is expected to exceed eight percent during 1982. Employment (in terms of the nonagricultural wage and salary employment) should rise about 1.590 in l98l and should show virtually no will ex- growth in 1982.

The gross state product pand at about a five percent annual rate during the fourth quarter of the coming year, more than double the growth rate this year. Although the gross state product increased two percent in 1981, virtually all of that growth occurred during the first quarter while the second, third and fourth periods posted declining levels of real activity.

The weak labor markets illustrate the breadth of the economy's subdued performance. Personal income will expand by only 12 to l0o/0, respectively, in both l98l and 1982. These figures compare with a I 3 9o increase in 1980. California's unemployment rate averaged a sur-

Consumer spending held up quite well in California during the first two quarters of l98l and then slowed

Story at a Glance

during the third quarter. The bank estimates that taxable sales volume will post a 140/o gain for all of 1981. That rate will decline to a depressed 7.490 pace next year.

On the brighter side, this weakness is likely to put downward pressure on consumer prices from an alarmingly highrateof increaseof 15.6s/o in 1980 to a projected 8.490 by 1982.

As might be expected, the pervasive weakness in the California economy is especially pronounced in the homebuilding industry. Indeed, l98l construction levels will hit the record books at a level far below expectations. Residential building activity is anticipated at I19,000 units, almost l89o below 1980's already depressed performance.

Again, this weakness in both the state and national economies is expected to relieve upward pressure on

(Please turn to page 37)

Fremont specializes in a large inventory of high quality Douglas fir boards, dimension, long lengths and timbers shipped from select mills in British Columbia, Oregon and Califlornia. We &r€ coostantly adding to our selection of western red cedar, pine, hemlock and white fir. Other species and specialty items are inventoried and included in our weekly flyer sent to all Fremont customers.

Rapid economic growth in second half '82 in California ... commercial construction will dominate nonresidential sector home building nearly 150,000 unils from'81's 119,000.

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2200 No. Glassell, Orange, Calif. 92667 (714) 637-s350 . (213) 860.7791

164 Healdsburg Ave., Healdsburg, Calif. 95448 (707) 433.3313

(Continued from page 35) interest rates during the last quarter of l98l and the first half of 1982. The improving interest rate environment should bring some relief to the homebuilding industry with housing production increasing to nearly 150,000 units for 1982.

Much of the stability that the nonresidential sector has enjoyed during this volatile and capital-short period can be attributed to funds committed prior to the tight credit environment.

Commercial construction will continue to dominate the nonresidential building sector throughout 1982. The current building boom started in response to low vacancy rates in many metropolitan areas. The alarm is now being sounded that unless curbed, this boom may result in excess office space. This problem may be avoided as commercial building dollar volume is expected to show only a I 5 9o gain in I 982 over I 98 I

The demand for warehouse and distribution facilities in California, coupled with accelerated business depreciation, is expected to stimulate industrial construction. Permit valuations will rise an anticipated 2oa/o by year-end I 98 I over I 980 and gain another 7-l0s/o in 1982.

As often happens during troubled financial times when high interest rates and a sluggish economy deter new building projects, the volume of alterations and additions should continue strong through 1982.

HAR DWOOD PLYWOOD

(Continued J'rom page 32) more contemporary styles to meet the imported cabinet competition. The cabinet industry represents a large market for stock panel and cutto-size hardwood plywood.

Another important market for some hardwood plywood manufacturers is door skins. The National Woodwork Manufacturers Association is estimating that door sales in l98l will be at least l59o less than 1980. Each flush door uses two pieces of 3 / 8", 3-ply hardwood plywood or other panel material.

In the last several years, wood has made a strong comeback for flooring, and laminated wood flooring has also seen an increase in demand.

Cut-to-size hardwood plywood manufacturers are principally supplying the furniture industry with drawer fronts, sides, and backs, laminated bed rails. table and desk

tops, table rims, and other parts. Shipments and new orders of wood and upholstered household furniture improved somewhat in l98l over 1980, a poor year, according to statistics developed by the National Association of Furniture Manufacturers.

The staggering cost of homes and home financing affects the market for hardwood plywood in several ways. A townhouse or condo or smaller house uses much less building materials and furniture than the detached single-family home built in the past. There is also less disposable income remaining after paying higher mortgage payments

Imports represent 7590 of total U.S. consumption of hardwood plywood. The large jump in hardwood plywood import prices continues to reflect the higher cost of hardwood logs.

l98l marked HPMA's 60th year of service to the manufacturers of hardwood plywood and veneer. As the economy recovers and housing units increase to 2 million built annually, a figure indicated as our housing needs during the mid-1980s, the hardwood plywood industry should participate in an improved market.

1982 Houslng lmprovement

Predicting that construction contracts in 1982 will total $169.4 billion, l59o more than this year's anticipated level of $147.8 billion, a leading industry economist has cautioned that housing would play a pivotal role in this "improvement" as gains in private nonresidential building and declines in publicly financed construction cancel each other out.

The 1982 construction market forecast, delivered by George A. Christie, McGraw-Hill Information Systems Co. vice president and chief economist, says that the revival of residential building will dominate the construction sector through much of 1982.

Christie believes that the excessively high interest rates that have been so damaging to the housing market in l98l will not prevail much longer. "The combination of a sluggish economy through mid-1982 that will limit credit demands, and a partial accommodation of monetary policy to the Administration's budgetary squeeze,

will allow a recovery of housing as interest rates recede," he said. "Of course, the strength of housing's response to an expected decline in interest rates from their lofty peaks is something of a guessing game," he admitted. "But even a modest decline of mortgage rates should bring next year's housing starts within the range of 1.4 million to 1.5 million dwelling units."

The economist expects residential construction will come to $82.8 billion, a 33s/o increase over this year's $62.1 billion; nonresidential building contracts will reach $57.1 billion next year, a one percent gain over this year's estimated $56.3 billion; and nonbuilding construction, expected to total $29.4 billion this year, will increase only one percent to $29.5 billion.

He set a low limit for the potential expansion of the entire nonresidential building category, due to the probability that the office building boom had reached its peak in 1981.

To Christie, industrial building provides the construction industry with the best opportunity for expan-

sion, "if not in 1982, then storting in 1982 and developing more fully in 1983." He pointed to the Reagan Administration's attempts to create a favorable environment for business capital spending.

"However, late in 1982, as the present slack in manufacturing is taken up by rising economic activi ty, the investment mix will begin to shift to a higher proportion of buildings in order to provide the means for further expansion," said Christie.

Much of the deferred construction potential of the early 1980s can eventually be realized, he feels.

Annual Hardwood Course

California Lumber Inspection Service will hold their fifth annual hardwood short-course during the first full week of Jan., 1982.

The clinic will be held in Santa Clara, Ca. Class is limited to 30 persons on a first come first serve basis. For further information, please call (,108) 294-1682 or write CLIS' P.O.6989, San Jose, Ca.95150.

The heart of any business is its people. While we can't show you all of ours, these are a few of the individuals responsible for bringing our customers quality hardwoods for over 50 years. Some have retired. Others have passed on. Yet, there are new generations to uphold the Penberthy tradition for providing products "a cut above the norm." lt is only by attracting these dedicated employees that we have been able to bring you the most exotic woods. the best grades and the most economical prices from the far corners of the world. They have helped build Penberthy into the only wholesaler in the West with over 1 .l million feet of hardwoods and softwoods in dozens of different species, a company with its own dry kiln facilities, a complete planing mill and some of the most modern handling techniques to be found anywhere. When you think of hardwoods, think of Penberthy, where giving you the most for your money is taken as a personal responsibility. Penberthy Lumber Company, 5800 South Boyle Avenue, Los Angeles, CA 90058. (213) 583-451 1.

WESTERN LUMBER

(Continued from page l5)

crease to be used in residential construction. Single-family starts should account for 64s/o of the total conventional starts, as opposed to 6590 during 1981. Single-family units took 7lslo in recent years.

While mobile homes areexpected to be up I 190 from' 8l figures,that increase will not make up for the single percentage drop that single-family units will take as a proportion of total starts. That is because mobile homes use only about 3,000 b.f. per unit-significantly less than singlefamily homes do. All uses of lumber should be up just marginally in 1982, however.

About 13 billion b.f. will be shipped from the Western region during 1982. That's about one billion more feet, or seven percent better than shipments during 1981. While it's hardly a full recuperative period, during these times the industry will take any improvements.

Inventories at this year's end should total 2.1 billion b.f. Under normal circumstances, that would be a low level. Under present economic

conditions, it can be called moderately high.

We look to next year's production to barely outpace consumption, leaving us with slightly higher inventory levels at the end of 1982, to meet what hopefully will be a healthier demand outlook in 1983.

We are hopeful that we'll see the beginning of better times around the start of the second half of 1982.

PLYWOOD tN 1982

(Continued from page I4)

would logically be down lTVz percent. In fact, the nonhousing markets have responded so well to joint industry-APA promotion efforts that the drop in total industry demand has been held to l2qo.

The value of the long-established industry drive for market diversification has never been more clearly demonstrated. Our great challenge for 1982 is to maintain a broad-based promotional effort in the face of continued inflationary pressures impacting APA budgets and services.

One of the recommended special emphasis areas in planned APA 1982 promotion, the increasingly valuable

over-the-counter sector, will rely for its future growth on continued cooperation between dealers and APA in the training of yard personnel, the provision of attractive merchandising aids, and further development of promising opportunities in residential and commercial remodeling'

The importance of close plywood industry liaison with dealers, distributors and their national and regional associations is underlined by their primary role in the distribution chain. Dealers accounted for 9690 of all plywood sold to homeowners in 1980.

Continuing opportunities in markets like do-it-yourself and industrial have been particularly valuable for western producers, who make about 70s/o of all sanded grades.

Based on a slow housing recovery at the pace I have indicated, demand for plywood and other structural panels could be 18 billion sq. ft. in 1982 compared to perhaps 17.4 billion feet in l98l (3/8-inch basis).

In summation, we expect 1982 will be the slow mending year we looked for in 1981, and 1983 should be the year for the plywood industry and its customers to return to real health.

SEASON'S GREETINGS from

Bill Johnson

John Polach

Larry Hansen

Walt Hjort

Ruby Spoor

Sonia Mastriana

Lill Bruccoleri

Susan McAtee and

Don't Hang Up on a Sale

Is the telephone shopper a second class customer in your store? If so, you are underestimating a potential customer, according to Reuben H. Donnelley, a major producer of Yellow Pages telephone directories.

As the cost of gasoline continues to rise, more and more customers are calling ahead to see if the store has what they need. Phone rates are still cheaper than mileage costs, according to the experts.

Sales people should be schooled in telephone manners to prevent alienating those calling for information. The retailers who refuse to give out prices over the phone are turning away customers as much as if they locked the door.

Some policies to stress in dealing with telephone customers include:

(1) Prompt answering of the phone.

(2) Clearly identifying the store or the department.

(3) Answering the question quickly and completely.

(4) Avoiding transferring the call if possible.

(5) Speaking politely and being helpful; sounding t tnice. t t

(6) Not saying you have an item unless you are sure it is in stock.

Being accurate on the price if it is asked.

Volunteering to telephone the customer when the merchandise comes in if it is out of stock. Offering to special order the item if you do not carry it or suggesting where it is available.

(10) Thanking the customer for calling and asking him to call again.

Interest, sincerity, and politeness come across over the telephone as successfully as in a face to face encounter.

30o/o of Starts in West

Although the West has only 200/o of the U.S. population, it is expected that 3090 of all housing s tarts, in the metro areas of the country this year will take place in the West.

A prediction of I19,318 new single family houses built in the largest 23 metropolitan areas of the West comes from the metropolitan area forecasters of the National Association of Home Builders.

This number is just fractionally higher than the number of starts recorded in 1980.

We'reGoingComputer

The transfer of circulation records for The Merchant Mago{ne to a new computer system is being completed.

Although the system eventually will facilitate the record keeping of subscriber files, there is always the possibility of a computer goof in these initial stages of operation.

If this happens to you, please accept our apologies and have patience with our computer. It's just learning the job! If you have problems, just call or write and we'll straighten it out for you.

Thank you, The Merchant Magazine

EVERYTHING YOU'LL EVER NEED IN PANELING CO-OP ADVERTISING.

Ask your States Distributor about our 75125 co-op advertising program. Yoy pgy only 25% and can use the ad materials we provide.

Ask also about our sales program, complete sampre and display and all the merchandising materials you need.

Call your States Distributoi toOay.

ALAAAMA

Sequoia Supply-Birmingham, Mobi16, Decatur

Uniled Plyw@ds Corp.-Birmingham, Decatur, Montgomery

AFIZONA

Sequoia Supply-Phoenix

ARKANSAS

Fischer Lime & Csment Co.-North Little Rock

International Paosr Co.-Ft. Smith

CALIFONillA

Aura Hardwood Lumber Co.-San Josa

Capiiol Plywood-Sacram6nlo

Frost Hardwoods-San Oiego

Sequoia Supply, Inc.-Fairtield

COLORADO

Boise Cascade Corporation-Denver, Grand Junction

Collins Hardwoods-Denver

FLORIDA

Dixie Plywood-Miami

Flintkot€ Supply Co.-Jacksonville

Plyworld Corp.-St. Petersburg, Orlando

Ssquoia Supply-Jacksonville, Orlando

Unitsd Plywoods Corp.-Psnsacola

GEORGIA

Sequoia Supply-Atlanla

IDAHO

Boise Cascade Corooralion-Boise

C.A. Company-Lewiston

tLLtNOtS

Edward Hines LumberCo.-South Chicago Heights

lllinois River Lumber Company-E. Peoria

Springtield Builders Supply-Springlield

The Pyramid Company-Aurora

INDIANA

Edward Hines Lumber Co.-lndianaoolis

Indiana Wholesales-Evansville, Tsrra Haute

Sequoia Supply-Ft. Wayn6

towA

Hawkeye Building Supply-Sioux City

Rounds & Porter Co.-Storm Lake, Davsnport, Oes Moines, Watsrloo

The Wood Products Co.-Waterloo

KANSAS

Century Lumber Co.-Topeka

Rounds & Portsr Co.-Wichila, Salina, Oodge City

KENTUCKY

Sequoia Supply-Crescont Springs

Wimsatt Bros., Inc.-Louisville

LOUISIANA

All€n Millwork-Monroe, Shrevaport

Oavidson Louisiana-Houma, Lake Charles, Latayatte, Baton Rouge, Alexandria, Monroe

Now Orleans

Saquoia Supply-New Orleans

iIARYLAND

Dixie Plywood-Landovsr

Sequoia Supply-Columbia

TICHIGAN

Edward Hines-crand Rapids

ttNlitEsoTA

Shelter Products-New Ulm

Edward Hines Lumber Co.-Farminglon

MlsstsstPPl

Sequoia Supply Inc.-Jackson

Triangle Oistributors, Inc.-Tupelo

Uniled Plywoods Corp.-Meridian

ttssouRl

Edward Hines Lumber Co.-Springlield

Four Siales Supply-Cartha96

Lumberyard Supply-St. Louis

Toombs & Company-Springtisld

'MONTANA

Boise Cascade Corp.-Billings

r NEARASKA

Central Lumb6r Sales-Lincoln

Rounds & Porler Co.-Haslings

r I'IEYADA

Capitol Plywood-R6no

r NEWtEXtCO

Thunderbird Steel Corp.-Albuquerque

NOSTII CAROLINA

Oiamond Hill Plywood Co.-Greensboro, Raleigh, Charlotte

Forsign & Domestic Corp.-Fayetteville

North State Building Malerial Co.-Asheville

Sequoia Supply, Inc.-Greensboro

NORTH OAKOTA

Lavelle Lumber Sales-Fargo

oHto

Clsm Lumber Co.-Alliance

OKLAHOTA

Rounds & Porler Co.-Altus, Oklahoma City, Tulsa

Cedar Crssk Wholesale-Tulsa

OREGON

States Dealsr Supply-Eugene

PEI{NSYLVANIA

Bsnnett Supply-Pittsburgh

Ssquoia Supply, Inc.-Kingston,

Seven D Whol6sale-Gallitzin

SOUTH CAROLINA

Diamond Hill Plywood Co.-Darlington, Grsenville

Saquoia Supply-Florence, Columbia

TENNESSEE

Oiamond Hill Plywood Co.-Knoxville, Nashville

Oyke Industries-Memphis

Holston Builders Supply -Kingsport

Sequoia Supply-Memphis, Kingsport

Tennessee Plywood & Ooor Co., Inc.-Chattanooga

TEXAS

Central Building ProductFFort Worth

Davidson Texas, Inc.-Austin

Genstar-Corpus Christi, Hadingen

Sequoia Supply, Inc.-Houston

Vaughan & Sons, Inc.-San Antonio

UTAH

Diehl Lumber Products, Inc.-Salt Laks City

VIRGINIA

Diamond Hill Plywood Co.-Richmond, Chesapeake

WASHIT'IGTON

Boise Cascade Corporation-Woodinville, Yakima, Sookane

C.A. Company-Spokane

The Harris Company-Olympia

Sequoia Supply, Inc.-Tacoma

WESTVIFGINIA

Sequoia Supply-Prichard, Hunnington

wtscoNstN

Edward Hinss Lumber Co.-Gr€en Bav

HANG IN THERE

(Continued from page 10)

to try to see what lies dimly in the distance, but to make the tough decisions and do what lies clearly at hand.

At this point in time, we're all encountering a great deal ofgloom and uncertainty. And not without plenty of justification. Under these conditions, it's certainly prudent to run as lean as possible and play everything close to our belts. But let's not forget that these conditions aren't going to last forever! Interest rates will come down.

It's still a hard, cold fact that there will be approximately 12 million more 25-34 year-olds in 1985 than there were in 1965 and 9 million more than there were in 1975 The basic demand for housing is still there! At the beginning of this decade, reliable forecasts predicted a need for an average of 1.9 million housing starts in the decade of the 80s. It appears that about 1.2 million starts were made in '80, and l98l will be less than that. 1982 certainly isn't going to be any record breaker. All of which means that demand is building higher and higher!

We can all be thankful that, at long last, others are beginning to feel the pinch, meaning the general economy is starting to show the strain. Unemployment figures are rising everywhere, and they're going to keep on rising. As a result, I personally think that we've seen the peak in interest rates. In fact, rates may come down farther than everyone expects. We've all been wrong about interest rates during the Dast l-2 years.

My personal opinion, for whatever it's worth, is that we'll see a modest turn in our business by the middle of 1982, or very soon after. It certainly won't be a dramatic one, but a gradual upward trend will certainly be welcomed by everybody in this business. Between now and then, our own company is going to pay attention to the basics, doing what good, common sense tells us to do. Even though we're aware that we're probably going through the worst business conditions our industry has had to face in 50 years, we're just as confident as ever about the long term growth prospects in the building material business.

Let's all hang in there!

from page 13)

After enjoying considerable success with the first LaBelle film, "Redwood Decks To Build & Enjoy," CRA produced a new casette "Choose & Use Redwood Like A Pro!" Retailers will find both films can educate sales people as well as consumers while describing the grades and specific applications of redwood.

While working to meet the immediate needs of the industry, the redwood manufacturers and the California Redwood Association are anticipating the challenges of the future.

With reliable indicators pointing toward a turnaround in the housing market as early as the third quarter of 1982, it is evident there will soon be a staggering demand for building materials. Keeping this in mind, redwood mills are continuously investing in reforestation, advanced milling techniques and new product development. The partnership of promotion and production planning ensure a strong demand and steady supply of redwood for years to come.

Home Sweet Home in a Dome

With experts predicting that families in "the besthoused nation on earth" will have to face choices in their research for more efficiently built homes. industrv forecasters see a buoyant maiket for the geodesic- dome homes.

Living in the round is not exactly new; the concept has always been evident in the world's evolving architecture. There are about 50,000 dome-ophiles in the United States, and more than two dozen American companies specializing in geodesic residences. Tate Miller, a principal in Cathedralite Domes in Capitola, Ca., the largest dome company in the nation, notes that his company, founded in 1962, has a countrywide distribution neiwork of more than 45 dealers. Over'the last three years, more than 4,500 residential domes were sold in the United States. This year, Miller expects Cathedralite's gross sales to top the M,000,000 mark.

The gre:at dome boom is on for specific reasons, one of which is the outstanding energy efficiency of this structure. A geodesic dome home is built by joining triangles together to make a circular building. Because the dome uses one-third less surface area to cover the same square footage, it costs from 30 - 50% less to heat and cool than a rectangular house of comparable size.

The circular shape covers a given area with less materials than the rectangle, and the convex design permits air to circulate freely instead of being trapped in corners. I ess surface area requires less fuel; and the skylights allow for more narural light, reducing utility bills.

While it is the sFongest strudture yi:t designed, the dome package is simple to construct, since it's merely the shell of what will later be the finished building. No previous building experience or special skills are needed to assemble a dome home package, according to the experts. Four or five workers c-an UuitO the domi home framework in an eight-hour period. A family can have the satisfaction of building its own basic home.

The standard Cathedralite package consists of 60 p,reassembled wooden triangles, skylights, riser wall and all necessary bolts, nuts, washels, canopies and straps to fit the triangles together, forming the shell of the structure. The owner-builder or contractor can customize the interior and exterior to prescribed specifications.

Another advantage of the dome structure is a flexible

EFFICIEI{T BEAUTY of the geodesic dome home may be a sotution to housing squeeze. R. Buckminster Fuller, worid renowned futurist and environmentalist, invented the geodesic dome and now serves as an adviser to a company specializing in dome homes.

Joe Bowman, Bowman Lumber Sales, Cloverdale, Ca., was in Sweet Home, Or., for the marriage of his daughter, Sandra, to Allen Brewer on Nov. 14.

Laura Cornett is now a sales administrator for Andersonia Forest Products, Medford, Or,, according to Rick Kelso, mgr.

Dean Matthews, Simpson Timber, Seattle, Wa., is back from a Southwest swing.

John Cole, John T. Cole & Assoc., Portland, Or., got in a recent Ca. business trip.

Wayne Smith and Bill Hayes, Delson Lumber Co., Olympia, Wa., have been in So. Ca. on business.

William Swindells, Jr., pres. and c.o.o. of Willamette Industries, Inc., Portland, Or., will replace Gene D. Knudson, c.e.o., when he retires Jan. l. C.M. Bishop has been elected as a director to replace Charles B. Kuhn who resiened for health reasons.

Don MacMaster, Jr., has been appointed sales/service coordinator for Russell Stadelman and Co., Memphis, Tn., according to Russell Stadelman.

Gordon Kane is new to the industrial sales div. ofFremont Forest Products, Whittier, Ca., according to C.L. Singsaas, div. mgr.

Don Philips, Philips Lumber Sales, Thousand Oaks, Ca., and his wife, Florrnce, vacationed for two weeks at Hana, Maui, Hi.

Steve Post is the new co-mgr. of 84 Lumber Co.'s store in Alamogordo, N.M.

Dan Mayr is the new sales mgr. with Linda Fdwards as his assistant at Mayr Bros. Logging Co., Inc., Hoquiam, Wa., according to Werner Mayr, pres.

Bill Jacobson, Reid and Wright, recently returned to the Arcata office after a 10 day sales trip in the Hawaiian Islands accompanied by Robert F. Reid who returned to the Hawaii office after spending the summer in Ca.

John H. Price has joined Kaiser Cement Corp., Oakland, Ca., as a sales rep covering the central coast area of the No. Ca. region, according to Douglas K. Guerrero, regional sales mgr.

Bill Broderick, Alamo Forest Products, Walnut Creek, Ca., and his wife, Sue, are parents of Joseph, born Nov. Jennifer Lee is 2t/2.

Kevin sister Mark Strickland, International Paper Co., Dallas, Tx., was a recent So. Ca. business visitor.

Ted & Rosie Gilbert, Product Sales, Orange, Ca.; Mac & Diane McNally, Vent-Vue, Los Angeles, Ca.; Paul & Ann Ward, Niesen Ward Forest Products, Morgan Hill, Ca.; Bob & Marie Mellen, Mellen & Johnson, CPA, Fontana, Ca., attended a late November tax seminar in Puerto Vallarta, Mexico.

Steve Haegen has joined sales at J.H. Blevins Co., Napa, Ca., according to Rick Rosa.

Craig L. Bauer, son of Carl Bauer, Bauer Lumber Co., Carlsbad, Ca., is a timber cruiser with the Forest Service at Pollock Pines, Ca.

Keith Johnson is now mgr. of international sales for Tumac Lumber Co., Portland. Or.

Gordon Kane is a new industrial sales rep at Fremont Forest Products, Whittier, Ca.

Andy Macko is the new mgr. of K/D Cedar Supply Co., Hayward, Ca.

I neuweou lulllter pTOOUGIS ano

we don't stock it, we can make it here in,

our new remanufacturing plant, the newest

most modern plant on the west coast.

Forvottr innttiries eey.

For your inquiries call:

RrcK RosA . DAVE

Sleve Garrison, Mallco Distributors, Phoenix, Az., recently had successful shoulder surgery.

Dave Grabe, Specialty Forest Products, Inc., Phoenix, Az., is back from a Hong Kong business trip.

Vernon Gregg is working out of the Eugene, Or., office of All Coast Forest Products, Chino, Ca.

Monte VanSise is now in the Denver, Co., office of Riverdell Forest Products Ltd., Englewood, Co.

Mike Riley is heading a national sales office in Newport Beach, Ca., for Cleveland Wholesale Lumber Corp., Cleveland, Ohio.

Paul Hammer is the new pres. and gen. mgr. of Hammer Lumber Co., Eugene, Or.

Al Schechter is the new group mgr. for Wickes Lumber Co., Tucson, Az.

Mike Pierson has joined the trading staff at Larios Forest Products. Oregon City, Or.

Will Pehl, Shakertown Corp., Winlock, Wa., is the new pres. of the Red Cedar Shingle and Handsplit Shake Bureau.

Robb Pynes is now in charge of agricultural and industrial products in the West for the Standard Forest Products branch in Springfield, Or.

George Baker is now marketing mgr.whitewood lumber and Jack Farnsworth, marketing mgr.-redwood, at Simpson Timber Co., Seattle, Wa., according to Thomas Ingham, v.p. marketing. Leroy "Mac" McCormick, lumber marketing and development mgr., has retired after 27 yearc.

Perry Adcox has joined Paul Trueb, Terry Kuehl, and Bill Wessner in sales at Sierra Pacific Industries, Redding, Ca., according to Ron Hoppe, general sales mgr.

Dick Andenon, mgr. special services, field services div. , American Plywood Association, has retired after 32 years service.

John Leach, Cuddeback Lumber, Eugene, Or., is the new pres. of the Independent Veneer Producers Association; Mitch Conley, Sun Veneer, Roseburg, Or., v.p.

Joe Pastusak has joined sales at Southwest Forest Industries, City of Industry, Ca., according to Ken Thompson.

Bill Moshofsky, v.p. of governmental affairs for Georgia-Pacific, is taking leave of absence to campaign for the office of congressman from the first congressional district of Oregon.

J.M. "Mel" Bettis, past president of the Western Building Material Association, is recovering from surgery in Caldwell,Id.

Don Abel, Don Abel Building Supplies, Juneau, Ak., has been appointed to a second term on the Board of Regents of the University of Alaska.

Rick Cunningham is the new sales mgr. for P&M Lumber Co.'s commercial wood products div., at Redding, Ca. Terry Mullin, The Terry Companies, Tarzana, Ca,, is back from a trip to Hawaii.

Bernie Molinski is now area mgr. of Or., Wa., Id., and Mt. for States Industries, Eugene, Or.; Jim Geertson will handle quality control.

Ken Gagne, sales mgr. at Cardwell Forest Products, Fullerton, Ca., has opened a buying office in Portland.

Greg Mokler, Fremont Forest Products, Whittier, Ca., is back from a brief Phoenix, Az., business trip.

John Kunik, So. Ca.; Chip Chapin, central Ca., and Larry Crossman, No. Ca., are new sales reps for Dataline Corp., according to Dinny Waters, regional mgr.

(Please turn to page 50)

MORE PERSONALS

(Continued J'rom page 49)

Xen Coleman, Eckstrom Plylvood, Los Angeles, Ca., is the new Supreme Nine member for Jurisdiction VI for HooHoo International, the lumbermen's fraternity.

Rich Stolz is a new man on the sales force, Rounds Lumber, Cloverdale,Ca. Seth Potter, Dant & Russell, Inc., Portland, Or., has been in So. Ca. on business.

Steven C. Priske, Garland, Tx., is the new southwest zone sales mgr. for Charmglow Products in Az., N.M. and Tx., according to Gene L. McGuire. director of sales and marketing.

Russell P. Wibbens has been appointed executive v.p. of the American Institute of Timber Construction. Englewood, Co., by the board of directors.

Bill Jacobson, Reid and Wright, Inc., Arcata, Ca., has returned from a Montana hunting trip (a deer, an antelope and 6 pheasants).

IIIANAGEIVIENT RESOURCE ASSOCIATES

7300 Lincolnshire Drive, Suite 200 Sacramento, Calif ornia 95823 (916) 427.5351

ROSEMARY KITCHEN

VETERAN LUMBER industry secretary Vivian Dowdall (letl) received the oavel as new regent oi llie Santa Gertru"des Chapter, Daughters 0f the American Revolution, from outgoing regent, Dawn Wetzel. Also active in Hoo-Hoo-ettes, an organization lor women in lumber, she has been executive secretary for the Ed Fountain Lumber Co., Los Angeles, Ca., for 34 years.

A recruiting tirm with its roofs rn the forest products industry.

Our years of practical experience in wood products can be an invaluable advantage to you in locating the key people you need.

DR. MEIGS

(Continued from page 8) significantly above the 2.390 growth expected for the rest of the United States.

Population and real income gains at higher than U.S. rates will keep the Western states outperforming the U.S. in 1982. Population in the West will expand three times as fast as the resl of the nation and real income will advance 3.40/o in the West versus 2.lo/o in the non-Western U.S.

The I I Western states (excluding Alaska and Hawaii), as a separate nation, would rank as the sixth largest economy in the world, following the U.S., Soviet Union, Japan, West Germany, and France.

Our confidence in this Forecast comes from examining the four major parts of the President's program.

(1) Reduce growth of Federal expenditures-to leave more resources for the private sec- tor, where productivity

growth will be higher than in government. Reduce marginal tax rates on individuals over a three-year period and reduce corporate taxes through changes in depreciation treatment and other measures. These reductions in tax rates undoubtedly will increase incentives to work, save, and invest. Furthermore, tax reductions will make the expenditure reductions more credible. Without tax cuts, expenditures will not be reduced, because the Congress and the agencies will always spend all of the available revenue, plus as large a deficit as will be tolerated. Rely more on markets, deregulate, in order to reduce the burden of regulations and other governmental intrusions that harass all businesses large or small.

(4) A gradual, predictable reduction in growth of the money supply is essential for reducing inflation in any country. A gradual reduction should minimize adjustment costs, such as unemployment and lost output. Making monetary policy predictable will aid consumers and businesses in their planning.

All four of these main strands in the President's Strategy are in the direction of reducing inflation, increasing growth of output, or both. It is difficult to predict the timing and magnitudes of these effects, but we are confident of their direction. We forecast that some of these effects will appear in 1982 and more will appear in 1983 and 1984.

To sum up, we forecast that the Reagan program will work. Important benefits of the program will appear in 1982, in the form of less inflation and more economic activity. And we should remember that the program is a longterm strategy. Greater benefits will appear in 1983 and 1984, if the administration and the Federal Reserve stav on the course they have set.

BURLINGTON NORTHERN

(Continuetl from page 8) business unit with full responsibility for planning, market development, pricing, equipment and service.

BN foresees continued weakness in the housing industry in 1982 as interest rates remain high.

Industry estimates indicate that housing starts are expected to be about l.l million in 1981, roughly l59o below 1980's levels. Some easing of inflation, slightly lower mortgage rates and increased availability of funds are expected to increase 1982 housing starts to around 1.4 million.

(3)

Gale EllingsonTom EmbreeDick Emison - ferry EssleyEd Evans - Jim FairBill FallertJeff FargherBob FaselW.C. Fields & progeny - Tony Feiger - Ramsey

FendallJohn FergusonJim Ferreira - Ray FinucanDean FlemingGlenn ForneyCrew of tug M/V Henry FossEd FountainEwen FraserBob FremdJim

FrodshamBob FuijimotoBob Gallegher - Tony

GallegherPete GanahlBen Gardiner - Wayne GardnerMax GarmonGene GauthierIim GauthierBob

Gaylord - George GeibPete GeibJohn Geijsbeek -

Phil GilbertTed Gilbert - Denny GilchristIim GilchristDale GoodwinJohn GrayRichard GrayLen GreenEv Guernsey - Ray GutierrezAlan Hale, Jr.Bob

HalvorsenJohn HamptonBill Hanen - Doug Hansen -

Captain Kris HansenMarie HansenTom HansenJohn

HarmerRonnie Harnew - Frank HarringtonJim Harrington - Ralph HarrisonIvan Hart - Hap Hasty -

Norton HathawayHarold HaynesBob HeberleButch

Heberle - Jay HebertDon HeilDon HelmigBill

Herndon - Denny Hess - Frank Higgins - Ann Higman -

Dan Higman - Jerry HigmanBob HirtRon HiteBert

Holdren - Ierry HoldrenFred HolmesRon Hopkins -

Bill HormuthIim HormuthDick Hotaling - ]ack

HugheyBill Hunter - George Hunter - Hugh Hurth -

Frank IvanovichBob JacobsenDick JahrausIoe

|ahrausChuck JenkinsHank Jensen - Evelyn Johnson

- Iohnny Johnson - Scrap Iron JohnsonLeonard Jones -

Dan KellerTim Keller - Doug KellyJohn KellyRuss

KeltsPhil KeltyA.L. KerperMead KibbeyDick

KilpatrickGordon KingBill KnudsenBill Koffard -

Lowell Kolb - |ake KornwasserManos KoulourisCarl

KufferathIotur Kytr.y - Walley Lai - Floyd LaierGus

"Cookie" Lamartine - George LaneJohn Lanigan -

Herschel LarrickMil LarsonLeon LauderbachDick

LearnedBob LehowMike LepageBob LindahlBob

LindermanIim LindermanIack LindsayWarren

Lindsay - Wally LingoJohn LipaniGrant Lovegren -

Marshall LumsdenAbe LymanJohn Macintosh - Uoyd

Mangrum - Douglas MapleBill MarmionBrownie

MarkstromBob Marriott * Pete MarshallJim Martin -

Jim MartinddeJim Matthews - Billy MaxwellIim

MaynardMac McCauley - Hatry McCauley - Hugh

McConnellBill McCoy - Ralph McCulloughJason

McCuneStan McDonald - Vernon McGaheySam

McGaugheyFistula McGogartyEd McGowan - Jerry

McGrewBert McKee - Kingston McKeeEllen

McNamaraTom Melin - Wayne MeredithTom

Metzger - Toby MoehnkeCrew of tanker M/V Moises -

Art MilhauptDon MillerWalter MillerHakalaka

MishebobFlorence MolenkampArchie MooreIack

MornorichWade MosebyJohn Mullin

-

PallowErnie Parcher - Colly PareJack ParVirgil Pa*chArt PenberthyBill PerkinsJack PetersonPete Peterson - Ray Peterson - Bob Peyton - Frosty

ks Pierce - Wally Pierce - Gary PittmanPitt

- Smokey PittmanEd PittsBob Plut - Larry

Ted Pollard - Tommy PooleCarl PorterSeth PotterJim PottratzTom PowellCarl PoynorMel PrawitzSam PrebleDave PriceIack Price -

Pyle - Smiley Quick - Larry Quinlan - Harry

QuentmeyerCarl RamstromBill RandallBill Rau -

Bill RayJack ReaBob ReedHal ReeveBud Reitz -

Lon ReynoldsTom ReynoldsVerl RhineFrank

RhoadesJim RichardsonChuck Riemann - Cy

RodakowskiBob Rodecker - George RodeckerBill

RogersIohn RontenKen RoseKen RossIim

RossmanIohn RudbachBill RuggBob Runeborg -

Clint RygelBob SandersPaul SauseFred Scaife -

Harlan SchroederClaude Scott - Harry SellingBill

SharpBob SheperdDean ShortJake ShuerueEd

Shuman - George SchmidbauerClaus ShultzNorm

SiefkenBob SieversCharlie SiffordBob Siltanen -

Bill SimpsonGene SjostrandClark SmithDarrell

SmithDon SmithHarold SmithJack Smith - Ray

SmithWalter SmithCliff SmootEk SnopesFlem

SnopesWalt SoppStark SowersPaul SparsoPete

SpeekDuke SpeerBob SpryGale Stafford - Larry

Stainbrook - Roger StainbrookPaul StakeFrank

StangerNeal StaufenbielStan StenlakeDon Stobaugh

Ed Stoner - Capt. Bob StorckBob Sullivan -: Iohn

SullivanDon SundstromTom SuppleFred Suverkrup

Herb SuverkrupJohn SuverkrupSteve Suverkrup -

Peter Svenkerud - Wally SwansonDon Swartzendruber

Merl Tanner - Phil TaylorIohn Tennant - Harry

TerrellBob ThompsonNat ThompsonFred Thomson

- Gary ThomsonAl ThrasherTim Timmerman -

Keith VogettRex Vowell - Maury Walker - Terry Ware

Ken Watt - Harley WemerHerm WestFrank

WestlakeJohn WestonWarren WexlerHal White -

Harry WhiteJim WhittyH.teh WilhoitDick Williams

- George WilliamsJim WilsonCece WingardSam

Witzel - Sterling WolfeGordon WoolardTed Wood -

Tim WoodJack YoungPat YoungJack Zalaha.

STEPI{EN G. FREEMAN & GO.

BETTER TIMES

(Continued frorn page 9)

believe high prices mean an end of the dream of home ownership, or the prosperity of the building products industry. We think now is the time to build for better times through better service, better skills, better markets.

We will enjoy some very good housing years in the West during the 1980s. Three million more people will move to the l3-state region than leave in the next eight years. Four million new households will be formed there. And the number of Westerners age 35-44 will nearly double.

These people will demand shelter. And I am confident ways will be found to supply it. Already we are seeing smaller homes (median house size has fallen 60 sq. ft. in the past two years) and fewer detached homes; less than 6090 last year compared to nearly three-quarters in 1975. Cluster homes sharing a common wall, along with plumbing and electrical wiring, and tandem houses, shared by two families, are becoming more popular.

Manufactured housing seems about to realize its potential, too. In

the past several years, the value of manufactured housing has appreciated as fast as the value of conventional housing. Restrictive zoning ordinances have been repealed in many Western communities. Financial institutions have grown more sophisticated in serving mobile home buyers.

But the West's best source of shelter for the 1980s will be the region's existing housing stock. Rising costs of new construction and high mortgage rates are great incentives to remodel or rehabilitate homes. This makes the tract houses of the 1960s and 1970s prime candidates for renovation and additions during the '80s.

We think the residential-repair market will outperform residential construction during the rest of the decade. And we think it will be less prone to wide swings in demand. Nationally, sales should grow l29o in 1982 to $58 billion, reaching $65 billion in 1983.

A larger share of this work will be performed by do-it-yourselfers, partly because of a spirit of self-reliance on the part of American homeowners and partly because of rising labor costs. Sales of lumber, plywood, paneling and gypsum products in

particular should benefit from this trend.

Often the do-it-yourselfer will team up with professional remodelers to complete harder iobs.

But we need not restrict our marketing effort to residential construction. Georgia-Pacific Registered Dealers are having great success selling building products to agriculture, a $25 billion industry in the West during 1981.

For years, farmers have been plagued by overproduction and uncertain prices. But the world's rapidly growing population, world population will grow 50 percent by the year 20fi), means all of the West's food-growing capacity will be needed to meet the demand, particularly to the Pacific Rim. We think domestic agriculture sales will grow at a steady 290 annual rate during the 1980s. Export sales will grow four times as fast.

Farmers have become a dependable market for lumber and other building products; a more important market each year.

Sure, our industry is in a trough of hard times. But we know the 1980s will emerge as the best, most profitable and most exciting time building products suppliers have ever known.

Diesel Fuel Price Way Up

If the present trend for higher diesel fuel prices continues, diesel trucks and tractors may drop their key economic advantage, according to the authoritative Lundberg Letter.

For the first time since'79, the cheapest gasoline costs less than diesel fuel. The trend is likely to continue because of competition among those marketing gasoline.

FinancialFrailty

Only three of the top 25 industrial companies in the U.S. in 1909 are still included in the top 25 today. General Ele.ctric, U.S. Steel, and Standard Oil of New Jersey are the survivors.

GEODESIC DOME HOME

(Continued from page 46)

interior floor plan. A dome home has no support walls to restrict the designer's imagination. Interior walls can be placed almost anywhere one desires.

The most commonly purchased sizes are the 39- and 45ft. domes, allowing for 1,500 and2,20O ft. of floor space. But don't expect to pay less for a finished dome home than for a rectangular house. Prices are comparable, minus the utility and inaintenance cost savings bf a geodesic home. However, those same savings are reasons why the dome can be a home with greater potential for increased resale value. Geodesic living can provide an attractive solution to a housing squeeze that grows worse each year.

INDUSTRY TRIBUTE recognizing the contributions of (right) Harold R. Jones, founder and chairman ot the board of States Industries, Inc., Eugene, 0r., to the prelinished wall paneling industry was presented by Clark McDonald, managing director of the Hardwood Plywood Manulacturers Association, at a dinner attended by industry associates. A room also has been dedicated in his honor at the HPMA headquarters in Reston, Va.

western states possess nine areas contained in the top 20 metropolitan growth regions of the country making it evident that our "market share" of national housing activity will affect us favorably. To this should be added the "ripple effect" of the areas surrounding these major growth areas.

But perhaps those of you who are in lumber distribution should concern yourselves less with building

starts than with the exploration and development of opportunities that relate to markets other than new housing. If we consider that roughly half the lumber consumed goes into new housing it will open the mind to capitalizing on marketing and management strategies that involve the non-housing areas of the overall market. Consideration could be given to:

(1) Expanding outreach into the remodeling sector.

(2) Developing a salesbasein noncyclical industrial usages of lumber and allied oroducts.

(4)

(s)

(6)

Introduction of new products or species that are customeroriented as a source of profit and movement.

Eliminating those portions of your product mix that have low rates of turnover and margins.

Generating more sale effectiveness in your staff through better sales training and the use of incentives.

Studying trends closely to be ready for the upcoming action market of the mid '80s.

Assuring his friends of continued service, Paul extends his sincere thanks and best wishes for the coming year.

NEW PRODUGTS and selected salesaids

Joist for Roof Construction

Trus Joist Corp. has introduced a new Tapered TJI joist, which features uniform top slope to prevenr ponding and eliminates the need for on-site shimming.

Specifically designed for minimum-slope roof construction, it offers a built-in slope of l/4" or 3/8" per foot, with a uniformly flat bottom flange that eliminates the need for furring since sheetrock can be directly attached to each joist.

The joists can be ordered with custom blocking panels and web stiffeners. They are offered for single and multi-family housing, commercial and light industrial projects. Custom joist lengths are available to 52 ft. with shallow end depths that range from 8 to 12 in.

Lightweight, the joist is said to have excellent loadbearing capacities. It features flanges made of laminated veneer lumber. The plywood web can be cut to accommodate duct work and wiring without affecting structural integrity.

FREE READER SERYICE

For more information on New Producls and New Literature, wrile The Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page numbor so we can process your requ€st fast6r! Many thanksl

Spout With Glout

A bronze-tone, wide-spread dualhandle faucet has been added to the Mermaid faucet line of UniversalRundle Corp.

With honey gold acrylic handles, it is ideal for vanity and counter top installations because of its extra long spout.

All-In-One washerless cartridges that are guaranteed for l0 years without leaks and water-saving aerators are standard.

NaturalPine Look

PineRidge, a deep-textured lap siding with the appearance of narrow pine boards, has been introduced by Masonite Corporation Western Hardboard Division to Western markets.

Each 12" x 16' course contains three machined-in 4" laps. A shiplapped edge design is said to keep application loss to 4-50/0. The product is primed for field finishing.

The latest offering in their Vz" thick SuperSide line, PineRidge is reportedly 5090 denser than solid wood as well as uniform in both thickness and manufactured quality to eliminate splits, cracks, splinters, checking or delaminating.

Fiberglass Roofing

Georgia-Pacific now offers Summit roofing, a dense, high-modular fiberglass mat roofing with 50qo more protective asphalt coating than conventional organic shingles.

The deep profile projects a shadow pattern complimentary to both new and remodeled residences, giving a look of wood shingles. It has a layer of kiln hardened ceramic-coated granules for extra protection against the weather. Factory applied adhesive strip uses the sun's heat to forge individual shingles into a single solid unit for maximum wind resistance.

It is available in standard, as well as oversized shingles. Oversized shingles are l3-l/4" x 39-3/8',20v/o larger than standard. The weight of 320 lbs. per square makes it a heavier roofing per square foot.

Both sizes are UL listed for class A fire protection and wind resistance, have a 30-year limited warranty, and are available in four colors.

Natural ColorSiding

Hi-Lite Burnt Almond is the latest addition to the Champlain prefinished bandsawn lap siding series from MacMillan Bloedel Building Materials.

The woody look cornplements most home styles from traditional to contemporary with the burnt almond, wheat and driftwood colors blending with most surroundings.

The sidings come in planks 12" wide x 16' long (305mm x 488omm), with color-coordinated accessories. Guarantees of 15 years for the factory finish against blistering, peeling or checking; and 25 years for the siding itself are given.

Whole House Ventilator

Nautilus Industries has developed a new concept in whole house ventilation.

Offering do-it-yourself installation with no necessity for cutting ceiling joists, the Whole House Ventilator draws cooler air from outside through the entire house while super heated attic air is pushed out. Continuous air movement is said to make the whole house a comfort zone.

In most climates, the ventilator alone reportedly will keep the entire house cool and comfortable. In air conditioned homes, cooling alternately with the air conditioning saves on electricity and prolongs the life of the air conditioning unit. The

The ventilator includes a solidstate infinitely variable speed control. Use of a louvered shutter to seal out hot attic air when closed is recommended. Accessories include a thermostat to turn the ventilator on and off at various present temperatures and a twelve-hour timer. The ventilator is available in two sizes, a 24 in. model capable of moving air at 3,700 cu. ft. per minute, and a 30 in. model at 5,250 cu. ft. per minute.

Roof Maintenance

Goodyear Flex-A-Roof Black Roofcoating has fiberglass and mineral fibers interlocked to form a flexible, high tensile strength coating of over 250 lbs. per sq. in.

It can be applied by conventional methods including brushing and spraying. The coverage rate varies, but 3 gals. per 100 sq. ft. is the recommended minimum, according to the manufacturer, Consolidated Protective Coatings Corp.

Valuable Protection

Customized Storage

Arrow Group Industries offers storage buildings in five basic series: the promotional front gables, high gables, deluxe gambrels, high gambrels, and mansard styles.

High gambrels come with a builtin storage attic. In addition a tractor building has a nominal size of 12'x 17' that can be extended with 7' add on kits.

All buildings have wide, ride-in door openings and 10090 galvanized overlapping panels protected by a weather-resistant finish. Two aluminum models, a promotional front gable, and a high gambrel with a built-in attic, are available.

Buildings come unpainted for a choice of exterior finish. The panels are genuine Aspenite, and the structural framework is hot-dipped galvanized steel.

An accessory line includes a shelf unit, anchor kits, a window kit, skylight kits, snow kits, and attic kits.

ventilator uses 8090 less electricity than most central air conditioning units.

Designed to insure ultra-quiet operation, double-resilient mountings isolate the motor assembly from the joists and the motor from the mounting frame to absorb motor hum and vibration. To further reduce noise, the shroud is completely independent of the motor assembly.

New from Associated Sales, Inc. is a 3" x 3Vz" x lVq" deep changea6le combination lock Mini-Vault.

Of solid steel, it is designed to hold spare keys, money, valuables, credit cards and jewelry. Installed with bolts, lag screws, molley bolts, or welded to any metal surface, it can be installed inside or outside the home, mobile home, R.V., club locker, car or truck.

The suggested retail is $10. The unit comes packaged on a three color display card.

Vacuum Attachment

Echo, Inc. has introduced the PBAV-400 vac attachment for its power blowers and duster misters.

The attachment operates on a venturi pump principle, with a single lever creating suction air volume through the blower discharge pipe into the attachment's bas.

A standard, mediuir-mesh, two bushel bag and a three-bushel bag in either medium or rough-mesh are available.

FREE READER SERVICE

For more information on New Products and New Lilerature. write fhe Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page number so we can process your request faster! Many thanks!

Decorative Thermostat

A new decorative heatlcool thermostat designed to retail for about $20 is from Jade Controls.

Available in white with Florentine gold face plate, or cocoa brown with walnut-tone face plate, either is compatible withall 24-volt heat/cool systems.

Temperature selection range is 40o-l00oF, 4-38'C. Markings appear in both oF and oC on the selector and built-in mechanical thermometer. Two bottom-mounted switches control fan, furnace and compressor operations.

Space Heater Fireplace

Readybuilt Products Co. has combined the energy and cost savings of the traditional space heater with the design of the classic fireplace.

Model No. 352 offers high energy output in a form that can be the focal point of any room. With a sandtone finish cast masonry brick in a mixture of warm earthtone colors, it offers a choice of fruitwood or antique white mantel.

It weighs 404lbs. and comes complete with mantel and brick hearth. The components are shipped factory

packed and require minimal skills to install. Model352 measures 56" wide by 46" high with a mantel width of 62". The fireplace opening is 34" wide by 24" high and contains a vent cap for use when outside venting for gas heaters is required.

A choice of gas or electric log designed to provide the efficient and safe zone heating is offered. The gas logs generate up to 22,000 B.T.U.'s per hour and are design certified by the American Gas Association for use in vented and unvented fireplaces per local codes. Electric heater logs can generate up to 5100 B.T.U.'s of warmth.

Waterproofing Stains

Chemstop's new waterproofing stains are available in standard colors or can be custom matched. Their penetration of wood fibers effectively holds in natural oils and resins, helping to prevent splitting and drying, dry rot and other fungi. This same penetrating effect on masonry will prevent spalling and cracking.

The stains, compatible with the clear Chemstop waterproofing products, can be applied by airless spray, roller. or brush.

Panels, Matching Moulding

Nine solid American hardwood lumber paneling patterns, each 3 / 4" thick, are offered by Graser Lumber Products.

The company also offers custommade profiles. Wood species include ash, birch, butternut, cherry, red oak, white oak, poplar, and walnut. Mouldings in matching woods also can be provided.

The paneling comes in varied widths from 4" to 10" depending on the pattern. Lengths are 6' to 16' with specified lengths available.

Fireplace Update

Preway has announced additional design features on its freestanding, heat-circulating fireplace, the Provider.

A new color, larger firebox open-

ing, glass firedoors, removable ash drawer and humidifier have been added.

Bi-fold, antique brass framed, tempered glass doors slide on a track to save space and provide safer operation. Doors remove for cleaning. A22 in. cast iron grate with a log retaining front attachment is now standard.

A warm-toned brown has been added to the available porcelain colors of mahogany and black. Porcelain enameled, double-walled, l0 in. chimney pipe to reach an 8 ft. ceiling is included.

Matching Moldings

AFCO Industries, Inc. has a new soft green,/rust floral design wall covering.

The heavy vinyl film is laminated ona4' x8' x3/16" hardboard panel. Matching mouldings are available.

One PieceWaterSupply

Plumb Shop has introduced the Corr-O-Flex line of one piece water supplies for lavatories, sinks and water closets.

The one piece eliminates the possibility of leaking between valve

and supply tube. It also permits unrestricted water flow.

The valve features soft, resilient packing to prevent leaking, extend valve life, and allow easy valve operation. The corrugated, flexible supply tube eases d-i-y installation.

Color on Tap

A new manual colorant dispenser has been introduced by the Colorant Equipment Division of Graco Inc.

The MT80 is designed to meet the needs of paint outlets that tint over 400 gallons per month with features

p'acked with 12 ft. of I in. diameter suction hose, couplings, strainer and garden hose adapter fitting for discharge. It is powered by a 1.6 cubic-inch engine and, with 1,500 gph maximum water volume at 45 psi pressure, is powerful enough to perform sprinkler and pressure washing applications.

A protective case hides the engine and includes a carrying handle. A centrifugal, self-priming system with check valve makes the pumping operation fast and simple. The pump will run for about an hour on a tankful of fuel.

like 80 oz. colorant canisters; two oz. pumps with stainless steel cylinders and pre-set stops; single hand pump/valve operation; clustered dispense nozzle; an electric agitation system; pre-set stop; and a choice of U.S., Imperial and metric increment gauges.

Portable Pump Power

With a weight of only l0 pounds and a suggested price nearly half the cost of any unit presently available, the new Homelite Waterbug pump is expected to create a consumer market for portable gas-powered water pumps.

The pressure pump has an unlimited number of applications because of its light weight and twocycle gas engine. It can pump water from a swimming pool or flooded basement; transfer water from a stream or lake to irrigate a lawn or spray wash a boat, or protect against fire, floods or other storm damage.

The pump has a suggested retail price of $164.95 and comes pre-

for red oak, white oak, ash, birch, walnut and other species to suit your needs

New Designs Underfoot

Floral designs in pastel colorings, neutral shades reproduced in terra cotta tile patterns and the addition of new colors to existing designs highlight a new flooring collection introduced by Mannington Mills.

The new patterns include four designs with a never-wax wear layer and one design especially suited to the do-it-yourself market.

lnsulated Entrance Door

Insulated entrance doors for residential use are new from Fenestra Corp.

Identified as Americana, they feature thermal-break and all-steel stile construction. Additional insulation is achieved by a polyurethane insulating core which is expanded to fill every cavity in the door. The core is self-bonding to the steel face sheets for maximum strength.

Available in a wide range of embossed and raised molding designs, the entrance system also includes decorative glass collections, sidelites and patio doors.

hnnrhnssntrmnsn CEunm

FREE READER SERVICE

For more inlormation on New Products and New Literature, write fhe Merchant Magazine, 4500 Campus Dr., Suite 480, Newporl Beach, Ca. 92660. Please mention issue date and page number so we can process your request faster! Many thanks!

For BetterCirculation

The Savannah is the newest addition to Nicholas-Kusan's line of energy-saving Old Jacksonville ceiling fans.

Available with 38" or 42" blades, it has a flexible blade hub, vibration absorbing motor mounts, and a heavy duty, sealed ball-bearing induction-type motor.

A solid state variable speed control

and a motor reversing switch allow for year-round climate control. Controls are located below the fan blades for safety.

The speed can also be controlled with an optional wall switch.

A full line of optional lighting kits and accessories as well as solid wood blades in various finishes, plain, stenciled or with cane inserts, are available.

(2r8) 5S8-8O51

(?14) 621-tlo0

87?2 XATBLLA AvE. LOA ALAMITOS, CALITONNIA 9O?2O

The PerfectChristmas Gift "k

wt,.} ffi#*

Outlet BoxCoverLine

RAB Electric has added to its outlet box cover line a CSI heavyduty die cast switch cover to be used with all standard switches or singlegang outlet boxes. CS2 is a new double-gang combination cover that accommodates a switch and a duplex receptacle. Both models are packaged with weatherseal gasket, mounting screws and a recessed switch adaptor.

For complete weatherproof closure, the CRI (single-gang) or

CR2 (two-gang) aluminum blank cover fits all standard weatherproof outlet boxes. It also comes packaged with mounting screws and weatherseal gasket.

CO2 is a new double-gang outlet cover with four weatherproof receptacles. All covers are available in silver baked-enamel and come packaged bulk or carded.

Shingles Switch to Metric

Celotex Roofing Products Division has introduced a new line of metric shingles, with an Underwriter Laboratories Class "A" label for fire and wind resistance.

The "Big D" line of Fiber Glass Asphalt Shingles /20 and /25, Rustic Shakes Shingles and its FRS Fiber Glass Asphalt Fungus Resistant Shingles has initial availability in the West.

Metric shingles reportedly can reduce labor time and installation costs.

Lok Pfeiffer Skylights is introducing a Skybubble@ Energy-Saver Model E line of residential install-ityourself skylights.

In a size range from 20" x 36" to

52" x 52", they feature bronze or mill finish aluminum frames, and energy-efficient sealed acrylic double domes in bronze-over-clear or clearover-clear colors. They conform to the Uniform Building Code.

Small Home Heating

The Cedar, new from Sweet Home Stove Works, Inc., is designed to give the small home owner economy and efficiency in solid fuel heating.

Featuring the same design and air flow patterns as a larger model, it has lower installation costs and will heat up to 1000 sq. ft. burning 153/r" fuel.

It has a 6" flue and sits on a 30" x 36" hearth pad. The stove has been tested and approved by Gas Appliance Laboratory. The I.C.B.O. listing is in the process.

FREE READER SERVICE

For more inlormation on New Products and New Literature, write fhe Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page number so we can Process your request faster! Many thanks!

Double Duty Saw

A band saw which provides the advantages of a circular saw bench with a band saw blade doing the work in place of a circular blade is designed and manufactured in Australia by Ripley Machines.

A different type of main frame and ball bearing guides provide versatili ty. It offers a vertical cut as well as straight line cutting. The development of this concept, together with greater table area, won an Australian Design Award in 1978.

Instead of being supported bY a

vertical pillar, the top frame is held diagonally, allowing 36" free space between the blade and the frame. This advantage is increased by a sliding table.

The band saw will handle panels uP to 24" wide and will cross cut any length of 15" material. The unit is powered by a rubber mounted, fully enclosed 1.5 hp three phase or single phase electric motor.

A single hinged guard gives access for blade changes and adjustment. A direct reading tension scale for any blade from 0.125" to 0.75" in thickness is built into the machine.

foftY

Service-oriented wholesaler

LeBeck Forest Products is a specialist in redwood.

Our contacts and sources can get you the redwood items and products you need. Our experience in redwood is a plus for you in finding those hard-to-get items.

In addition to redwood, we can supply your needs in Douglas Fir, Particleboard and Plywood.

142-0820 Dave leBeck

Open Door Policy

Atrium Door has a new all-wood swinging glass door with fixed coordinate panels available in a variety of configurations from two-panel (door and fixed coordinate) up to fivepanel units.

Single doors and fixed coordinate panels may be used separately to allow use of the same style doors and framed glass areas throughout the home.

Doors are constructed of edge

glued Ponderosa pine with all wood door frame, jambs and headers. The sills are of edge glued red oak. Every door comes complete with an armored dead bolt/lever system produced by The National Lock Cry.

Doors are factory assembled with all jambs, headers and sills in place. Step-by-step instructions are included. Optional wooden grills, available in rectangular or diamond shaped patterns, are removable to allow access for periodic glass polishing.

Safety double pane insulated glass, sealed to the wooden door frame with double bedding, is standard clear or available in bronze or gray solar tints.

Who's Ringing My Bell?

A packaged consumer door chime kit for the do-it-yourself market has been introduced by General Electric Co.

The kit (Cat. No. C800) is design- ed to retail for approximately $22.95. For front or back door use, it contains a two-signal chime in an ivory plastic enclosure, with a lOV transformer and an unlighted door bell button. The chime also can be operated with four C-size batteries. Enclosed in the kit is a simplified

wiring diagram and illustrated instructions which cover how to install a second bell button (not included) for another entrance.

They also offer an all-carded door chime starter assortment with sight and sound merchandiser. The display panel may be mounted to an existing gondola or wall-mounted for separate display.

Three different chimes, plus a door bell and a buzzer invite customers to try a hands-on demonstration.

Our CCA Salt Treating cylinder rs one of the largest in the West. One phone call can put it to work for you. And you'll want to consider our custom treating combined with computerized inventory control. Save time, money and space. Call: Steve Ryan, General Manager

In California (800) 582-3950

Outside California (805) 833-0429

POSTS POLES

Tri-view Mirror

Jensen has a new concept in tri-view medicine cabinet hardware called the Pana-View System.

As with a conventional tri-view, the side mirrors swing inward. But hinged metal arms allow both side mirrors to extend out away from the cabinet for a convenient view of normally hard to see areas. In addition, the outside mirrors also swing outward to make storage easily available. Finally, the center mirror opens to reveal storage space. It is available in six different styles in 38 in. and 50 in. widths.

(Continued from page 1 1)

expect a very frustrating business climate to exist.

From the manufacturing side, the high cost of timber, slow export demand and reduced operating schedules will raise havoc with 1982 profits.

Plywood will be further challenged by the wafer-board products as several new production units emerged in 1981.

The trend toward wood combination products will continue in roof and floor systems. A strong market will exist in treated outdoor wood used in patio and landscaping activities.

We think 1982 will be much like l98l except it will have a much stronger finish.

Stampede ropes suppliers, dealers, sales

IIANCH hands on the Palmer G. rll.ewis Co., Inc. spread at Auburn, Wa., are still talking about the Wild West Stampede, the ninth annual customer buying show for the firm.

With the past eight shows achieving record results, the range bosses felt that plain horse sense indicated that they would do well to place this year, considering present economic conditions, but the results on Sept. 20 had as many surprises as a bucking bronco.

"Although sales and attendance were down from 1980, the performance was comparable to previous years. Last year's show would have been hard to beat," said Richard (Dick) E. Lundgren, PGL president.

"As it was, over 1,300 dealer personnel, spouses, suppliers and PGL'ers attended the one day show. We predict sales will exceed $3 million by the time back orders are filled and final orders are written."

Story at a Glance

Wild West Stampede corrals bargains over 1300 cowhands ride the range sales expected to exceed $3 million.

Explaining the spirit, attitude and enthusiasm of suppliers and dealers reached a high point, he concluded, "It definitely was a show with character. "

"We try hard to make it a 'fun' show notjustrow after row of 8' x l0' booths with suppliers eager to leap on retailers," said Charles (Chuck) D. Lauber, v.p. and PGL promotion mgr. "Our aim is to involve the audience with authentic displays and attractions that relate to

the theme, are interesting to our customers and help increase attendance."

This year the theme was western. Cowboy boots, hats, and levis were the dress. The top display was an 1895 desert coach once owned by an uncle of Palmer G. Lewis, company founder and chairman emeritus. Horses were stabled out front in portable corrals, A burro and lots of straw gave a down home look. Dill pickles, popcorn, soft drinks and beer added to the festivities in the 150,000 sq. ft. warehouse.

Summing up how the suppliers felt

about this year's show, director of purchasing, Craig Herrity, said lining up suppliers to exhibit and offer price discounts becomes easier each year. "They know sales will come and they do. Some of our small volume lines do more business on show day than they do all year. In addition to buy show catalog savings, many suppliers have Sunday specials advertised by signs and handouts."

Product managers huddle with suppliers weeks before the show. As a final briefing, suppliers are invited to

(Continued on next Page) ti-

STAMPEDE of 1300 people invaded 70 product booths (top pholo) on the PGL spread at Auburn, Wa. Sales mgr. Phil Harris (right) makes a quick draw on prizes with an assisl lrom some of the ranch hands.

BIG STAMPEDE

(Continued from previous page)

a cocktail party the Saturday evening before the show.

A 130 page special Buy Show Catalog offered special savings on over 70 product lines. To help the dealer turn his newly purchased inventory, the advertising and promotion booth offered a tabloid promotion service. For every $1200 the dealer bought he received 1,000 free tabloids. The standard customer tabloid was available in 4 or 8 page format tailored to dealer products, prices and store personality.

Registration cards indicated customers traveled to Auburn from points all over the Northwest and Alaska to attend. Over 70 prizes were

awarded. The drawing for the grand prize of a $1,000 savings bond and 25 shares of PGL stock was won by Lacey Builders Supply of Lacey, Wa. The nail driving contest was won by Tony Steinman, Hartnagel Building Supply, Port Angeles, Wa.

A special feature was the appearance of Gary Collins and Mary Ann Mobley. Sponsored by Gold Bond Building Products, the former Miss America has starred in many television programs and Gary Collins is the host of tv's newest talk show "Hour Magazine."

ECONOMIC ANALYSIS

(Continued from page l2)

and autos should lend an additional spark to the recovery.

Monetary policy is expected to remain snug during 1982 and in some quarters this raises the spectre of a credit crunch. The term "credit crunch" is too often used in the Humpty Dumptyean sense of "a word means exactly what I chose it to mean." A true credit crunch occurs

BONNINGTON LUMBER COMPANY

CITY DUDES Bill Hobbs and Ray Krueger, Swan Corp. (lop photo) came to the Palmer G. Lewis Wild West Stamoede to show their wares. Pres. Dick Lundgren (right, lower pholo) reviews the buying show catalog with Dean Webb of the PGLWenatchee. Wa.. branch.

Douglas Fir o Redwood . Ponderosa and Sugar Pine

when funds are not available at any cost. This is not currently the case. Unquestionably, there are dislocations in the credit markets.

The long-term capital markets are in disarray because neither borrowers nor investors are willing to commit themselves long under current market conditions. However, funds are available for a price in the short-term market where business borrowings at commercial banks and in the commercial paper market are running double last year's rate. Those would-be borrowers who lack the financial options to tap either the long-term or the short-term market are clearly at a strong (if temporary) disadvantage.

How much will interest rates fall in 1982? Well, for one thing, we shall not see the pell-mell retreat of rates that we saw in the spring of 1980, when the prime rate quickly dropped by almost I I percentage points and Treasury bill yields fell from l6%s/o to around 6Vzv/o. The descent will be more gradual and perhaps with a marked differential between the amounts of decline in short-term rates and long-term rates. This difference in behavior is not unusual in business cycles, but it has been suggested that long-term rates are more or less locked-in the current situation.

The market is concerned with the upward revised Treasury cash needs in fiscal 1982 and beyond. Business borrowers, now feeling themselves trapped in the short-term market, may attempt to fund their short-term debt by selling bonds when rates appear reasonable. This combined pressure could slow the descent of long-term rates but not halt it altogether. Short-term rates in the medium to higher single digit range and long-term rates of I l-13 percent seem quite attainable in 1982.

Fred C. HolmesltsT,?K"

drome and it is timeit came to an end. Tough bullet to bite for some, but when the patient recovers, it can only mean a healthier growth, limited only by the resourcefulness of the industry.

Vholesale Lumber Products

Redwood, Fir, Pine & by-products

Interest rates will gradually come down during 198 '.ut don't expect a single digit mortg*e interest. The l5 or more "innovative financing" approaches authorized and being tried by the thrift industry will shift down to two or three that more popularly meet the needs of both lender and borrower.

Savings and loans will become more like banks, mortgage bankers will be more highly visible in housing finance, and home buying needs will cause the better heeled potential buyers to swallow deeply and then take the plunge in the I lu/o-l{s/o interest rate pool. How many? No one knows. So much depends on consumer income levels and the degree of subsidence of inflation.

While the change of the calendar from'81 to '82 holds promise for this industry, there is a thorn in the bouquet. Without a doubt, there will be attempts to remove or severely limit the deductibility of mortgage interest and real property tax payments from gross income of individuals. When the call comes for this battle, everyone. . . owner, buyer, builder, supplier, lender . . better jump into the fight.

As homebuilding begins its slow rise to recovery, retailers should also remember that the diversification and efficiencies they were forced to develop during this down time should be continued. Good business management, less government involvement, a healthy economy, an obvious consumer need all mean that the near future will be coming up roses!

Fnrm Hawaii to C-alifornia to the Rocky Mountains . . . .

Your best source for redwood from the people who really know redwood. Try t us for clears, commons, industrial items and lath. Also plywood siding in red- /I wood and Douglas fir, plus Douglas fir C & better finish. / /

Wood Markets and Recovery

Wood markets in the economic recovery era formed the theme and focus of the National Forest Products Association's 79th Annual Meeting, held in San Diego, Ca., Nov. 8-ll. Major discussion at general sessions and committee meetings was on the options and alternatives available to the forest industry to reduce interest rates and get housing moving again.

NFPA President A. Milton Whiting said the industry's concern, "first and foremost," is the longterm national economic well-being. "President Reagan's program must be given a chance to succeed," he said. "We are committed to help make it a success."

At the opening meeting session, Whiting reviewed the history of federal involvement in housing and mortgage finance; analysts' views about the economy, interest rates and recovery; how politicians are reacting; steps the industry is taking to improve product markets, and the economic proposals under consideration to lower interest rates and spur home building.

The economic situation was addressed in resolutions approved by NFPA's Board of Directors:

-Urging continued support by the Administration for the unsubsidized mortgage insurance and guarantee programs of the Federal Housing Administration, Veterans Administration, Farmers Home Administration and Government National Mortgage Association, as contributing substantially to fulfilling national housing needs on a sustaining basis.

-Urging NFPA to undertake legislative and administrative efforts to expand opportunities for pension funds to invest in residential mortgages.

THREE mill men from the Pacific Northwest oresented their views ol current industry bituations to a lively, give and take regional meetino of the North American Wholesale Lumbei Association held recently in Los Anoeles. one of 18 reoionals held across the U.5. Speakers were Gieg Pittman, Boehmia, Inc.; Bill Rooney, Louisiana-Pacific; and Dave Miller, Publishers Forest Products. (1) NAWLA's Douo Ross, with John Weston, Bill Haves. (2) .t-onn Cote, Joe Tidwell, Bill Sherp. (3) Bill Rooney, Harry Selling, Frank Bader. (4) Sterling Wolfe, Al Slaughter, {5) Bill Bauoh, Steve Snavely. (6) Gordon Beach, Wayne Gardner, Donna Brokaw, Don Derbes. (il John Gaskin, Mike Sims. (8) Ted Gilbert, Gordon Woolard. (9) Jim Frodsham, Bill Conroy, Mike Sims. (10) let-e Nevins, Paul Haacke, Blaine Smith, Tim GafIney. (11) Mark Herms, Gary Gerberich, Bru-ce Burns, Dale Bacon. (12) Bob Cadmus, Bill Clow. (13) Jetf Lynn, Greg Arnds. (14) Pete Speek, Jim Barnes. (15) Sterling Wolfe, Jr., Sterling Woll, Steve Coontz. (16) Bob McCune, Bill Buettner, Richard Tanaka.

CUSTOM REMAN U FACTU RING

Prompt service, quality, and a desire to please is our business. Call us for your custom milling requirements.

Photos b1, The Merthant Mctgu:ine

COMPLEXITY A CHALLENGE

Your recent editorid, "A Steely Resolve," accurately depicts the condition within our industry.

Tied to your thoughts should be the intangibles that give us the willpower to stay in business and to be successful. High on this list should be the pride of ownership as well as the ability to function within a free society.

The complexity of our industry is a challenge to all of us fully knowing that the end result adds to one of the most basic needs of our society-that of shelter.

Homer M. Hayward President-general manager Hayward Lumber Salinas, Ca.93902

HIGH RANXING INFORMER

Just a note to let you know how much I've enjoyed the magazine the last three years. When I get it in the mail, I usually devour it the same evening.

The Merchant has helped me to be more (better) informed about what's happening. Thanks again.

Don Willard, Jr.

4O3 E. Churchill Stockton, Ca.95?-04

PROBLEMS YET UNRESOLVED

Your recent editorial, "A Steely Resolve," is indeed a grim but accurate portrayal of the construction industry in deep recession.

I agree with your analysis that much hardship and suffering has and will probably continue to take place. Many more firms will go broke and thousands of individuals will leave the industry never to return again. It is indeed a period of adjustment and a time for our last ounce of effort and commitment toward facing up to the problems at hand. Those of us who do this well will survive and be the better for this experience.

My one strong conviction, however, is that we are in one of the biggest and most important businesses in the world today. Construction will resume because it is essential to civilization.

I personally have been in the lumber

business since the mid-1930s. I have seen the Great Depression, World War II, national emergencies of all types and description including financial panic which drastically effects us even worse than the general economy. Many times the future has looked bleak if not hopeless. The current problems are no larger than many of our past problems; they are only different and as Yet unresolved. Faith, determination and hard work on our part will win out to make the future even better than the past. Our industry is noted for its contribution toward raising the American standard of living. Even though bloodied and badly bruised, we will rise again and many will live to prosper beyond their wildest dreams.

Dean A. Drake General manager

O'Malley Building Materials

2626 E. Indian School Rd. Phoenix, Az. 85016

TRIBUTE TO INDUSTRY PIONEERS

Wanted to express my very sincere gratitude for that very fine tribute to my grandfather, my father, and our company in the October '81 issue of your magazine.

I thought Gage McKinney's preparation of this was outstanding.

E.J. Stanton & Son, Inc. still is active albeit not in the distribution of lumber products any longer, and it is my wish and hope that it will continue as a memory to them for manY Years in the future.

With very best wishes, and appreciation.

IeRoy Stanton, Jr.

E.J. Stanton & Son

P.O. Box 1007

Norwalk, Ca. 90650

(Continued from page 12) most for continuation of growth and profit.

Fortunately in this industrY cash flow will not influence our retailers as it will in other areas. Cood cash and money position will enable hardwarelhome centers to capitalize on their position.

Profits will again in this market area step-up to the 8Vz to l2Vzolo range and will prevail in almost all of the "sun belt area."

New stores will slow down in new openings, but older stores will spend more on remodeling and enlarging projects.

For the industry, in most cases, 1982 will be another good production year, but with greater management skills required.

Redwood-Cedar Spruce

IMPORIED ANI) DOMESTIC WOODS

Our aim is to fill your requirements, promptly, with competitively priced quality products.

SINCE 1876YOUR COMPLETE GUIDE... lum[8rmGn$ red b00lr sGrulce

The Lumbermens Red Book llstsall producers, wholesalers, retailers of lumber and wood products of any kind, and. . all manulacturers ofwood turniture. cabinets and millworkmobile homes, prefab houses and modular unitswood recrealional products, sportsware and toys - boxes, crates, pallets and industrial productsand all other products using wood in any form.

A Red Book llstlng showsthe exact business name - complete address, including

P.O. Box and ZIP CODE! - concise description of what the business does - special data such as location of purchaslng depanmentthe linancial strength rating (not alone the net worth, but what is available to crodltors)the exact payment rating (how lt pays: prompt, slow, very slow).

A Red Book credit rating is accurate, because the man who assigned it is a speclallst in the field we cover. His rating allows you to make an lmm6dlate decision!

I f]ease enter our suO;_cgrplign for.Lumbermens RED BOOK service I one year. Bill us: $'198.75 quarterly n; $397.50 semi-annually ! ; $795.00 annually n. Please send more information, without obligation

BUSINESS

YOUR NAME

(Continued Jrom page I0)

spiral in housing? Remember all the speculative buyers during that period?

We suggest that somewhere be-

tween now and I 985, the industry will consider a 1.6 million start year as a housing boom.

During 1981, remodeling markets were excellent. We think they will remain good in 1982. That's the good

However, if an owner adds on or spruces up his home, he will not likely trade up to a new residence. In our view, the remodeling market for producers and wholesalers requires innovation, service and selling. It will continue to be a major market for the flexible wholesaler of wood products.

The market for industrials should be fair to good in 1982; certainly, it will be equal to l98l sales. This market segment will also require marketing expertise. As long as interest rates remain double digit, the industrial customer will not want to carry inventory. On-time shipments and good customer service will be much more important than product cost.

Export markets overseas could remain slow in 1982 and will depend largely on the economic climate within a given country. With l98l exports down from those in 1980, we foresee slow activity in this market for next year.

In summary, the coming year will show marked improvement over 1981, but the marketplace will continue to demand sales effort, close attention to credit exposure, good management and the utilization of every opportunity that presents itself.

Signs of the Times

Use of overlaid plywood for outdoor signs is discussed in a new literature sheet free from Simpson Timber Co., 9fi) 4th Ave., Seattle, Wa. 98164.

Friendly Threshold

A copy of ldeas for a ll'arm Welcome is free from the Fir & Hemlock Door Association, Dept. FH-5DL, Yeon Bldg., Portland, Or. 97?14.

Soldering Specif ications

A 20-p. catalog of soldering and desoldering equipment is free by calling (800) 421-1538 or writing Ungar Division, 100 W. Manville St., Compton, Ca. n220.

llluminating Information

La

Standards, an 8-p. colored brochure, is free from Permapost Products Co., P.O. Box 100, Hillsboro, Or.97123.

Metric Shingles

Specification sheets on metric shingles are free from Celotex Roofing Products Division, P.O. Box 22602, Tampa, F1.33622.

Ghain Link Fence

Programs for Profit are free from Fence Division/Allied Tube & Conduit Corp., 16100 S. Lathrop, Harvey, \. ffi26. New All-steel Pallets

Steel pallet literature is free from West€rn Steel Co., 1650 Vandike St., Philadelphia, Pa. 19124.

FREE READER SERVICE

For more information on New Products and New Ltterature, write fhe Merchant Magazine, 4500 Camous Dr.. Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page number so we can process your request faster! Many thanks!

This Way In

A catalogof Americana entrance doors is free from the Fenestra Corp., Erie, Pa. 16505.

Decks, Outdoor Projects

A new lO-page brochure Decks ond Outdoor Projects is free from GeorgiaPacific Corp., 900 S.W. Fifth Ave., Portland, Or.972M.

American All the Way

Full color descriptive brochure of solid American hardwood lumber paneling patterns is free from Craser Lumber Products, 3540 Martens St., Franklin Park, I1.60130.

Forest Products Directory

1980 Directory of the Forest Products Industry is $75 from Forest Industries, 500 Howard St., San Francisco, Ca. 94105. Off The Wall Storage

A l6-p. brochure At Home. Vith Cabinets is free from Yorktowne Cabinets, PO Box 231, Red Lion, PA 17356.

Eliminate the Gasman

Moking Your Own Home Brew For Under $100 by R.A. Hopkins, step-bystep instructions for making alcohol for use in cars, is $14.95 from AMJ Publishing Co., Box 847, Tarzana, Ca. 91356.

Ready.to-Assemble Furniture

A new, 8-p. full color brochure of ready-to-assemble and finish furniture is free from American Forest Products Co., National Sales Division, P.O. Box 8220, Stockton, Ca. 95208.

Nicklaus on Insulation

For a sample copy of The Homeowner's Guide to Installing Fiber Gloss Insulation (#HIG-505), or a quantity for distribution to customers, write Johns-Manville Service Center, l60l 23rd St., Denver, Co. 80216.

Spotlight on Cedar

Construction Concepts for use as a mailing piece or customer promotion is free from the Western Red Cedar Lumber Assn., Dept. 663, Yeon Bldg, Portland, Or. 97204.

Answers to Vinyl???

A new 8-p. brochure, What Homeowners Want to Know About Solid Vinyl Siding, is free from Vinyl Siding Institute, The Society of the Plastics Industry, Inc., 355 Lexington Ave., New York, N.Y. 10017.

Market, Sales Forecast

Copies of the new Zocal Construction Potentials brochure are free from the Marketing Dept., F.W. Dodge Division, McGraw-Hill Information Systems Co., l22l Avenue of the Americas, New York, N.Y. 10020.

600 a word, min. 25 words (25 words : $15). Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line; 94. Box numbers and special borders: $4 ea. Col. inch rate: $30. Names ofadvertisers using a box number cannot be released. Address all replies to box number shown in ad in care ofThe Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Make checks payable to The Merchant Magazine. Mail copy to above address or call (714) 549-8393. Deadline for copy is the 22nd of the monrh. PAYMENT MUST ACCOMPANY COPY.

FULL-CHARGE bookkeeper with accounting background to run office of large bldg. material retailer. Experience in all office functions mandatory. Excellent location in top So. Ca. resort area. Salary open, benefits excellent. Send resume to Box 433 c/o The Merchant Magazine.

SALESPERSON

LARGE wood products company needs a salesperson in S.F. Bay-Northern California area. If you've had minimum l-2 years sales experience in lumber or building products, send resume to Box 434 c/o The Merchant Magazine.

EXPERIENCED inside cedar/redwood wholesale trader needed for direct mill sales. A well-established company in Northern California seeks a person with a combination of production and sales experience. Competitive salary plus excellent benefits. Send resume or write Box 430 c/o The Merchant Magazine. All replies confidential.

SALESPERSONS

REDWOOD EMPIRE, a division of Pacific States Industries (PSD has immediate openings in its wholesale lumber division (No. Ca.) for experienced salespersons. Distribution yard experience desired. Remanufacturing knowledge a plus. Serving Ca. and national markets. Redwood Empire irffers a base salary plus excellent commission to the individuals who possess a strong buying and sales background. Medical/Dental,/Life included. Contact Dan Naughton at (4O8) 629-4484 for interview, or send resume to sales manager, P.O. Box 1300, Morgan Hill, Ca. 95037.

ENSWORTH FOREST PRODUCTS

needs experienced wholesale lumber salesman for direct T&T and carload sales to retail and industrial accounts. All replies confidential. Call Jerry or Ross Ensworth (9 | 6\ 823 -i 210.

EXPERIENCED pallet salesman. Ask for Carl Boesch. Hunter Woodworks. Ql3\ 775-2544.

TWISTED AND WEATHERED

Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Call Wm. Hunter. Hunter Woodworks. (213) 7 7 5 -2s44',(2 I 3) 835-567 l.

ARE YOU SATISFIED?

DO YOU think of doing business in the classic unhurried manner of a time you thought was gone? Call me to discuss the many benefits of your affiliation with a group of gentlemen trading lumber in a gracious old time manner.

We are interested in experienced lumber traders of any age with a substantial following. Softwood or hardwood, domestic, import or export. Stay where you are. If you like, work from your home. Full or parttime. Travel as you choose.

W. Preston Cermain, president, Germain Timber Co., 304 Center Ave., Pittsburgh, Pa. I 5215, (412\ 782-3240.

EXPERIENCED

SOUTHERN Ca. contractor yard desires salesman to serve Los Angeles Market. Salary, commission, expenses, car, medical benefits, and profit sharing. Please send resumes to Box 428 c/o The Merchant Magazine.

When sending in a chonge ol address please include zip code on both old and neu' addresses and either the old label or the inlbrmation from it. Thanks!

FOR SALE

ONE HERMANCEgang rip saw 40 H.P. Excellent shape, all electrical parts included, $4600 or trade for other equipment or lumber?

One 25 H.P. Jaeger compressor, excellent condition, $3600 or trade for other equipment or lumber??? Reply to (916) 626-8560. Ask for Van.

HARDWOOD INFORMATION

REPRINTS of hardwood articles from The Merchant Magazine. Excellent for reference or training. Domestic Hardwoods, $10: Southeast Asian Hardwoods, $5; South American Hardwoods. $4: all three. $16. Send your check today including name and address to Hardwood Reprints c/o The Merchant Magazine.

SAVE YOURSELF MONEY

HALF PRICE OFFER for l0 or more subscriptions lo The Merchant Magazine, when paid in advance. You and your employees can enjoy and benefit from The Merchant Magazine for one year for only $3 per subscription. That's a 50% saving over our standard $6 per year rate, which is a real bargain in tsel f.

Use this special bulk rate subscription to make sure that the key people in your organization are assured of keeping up with industry developmenls as well as gleaning the merchandising and managenrent informalion they need to do a better job.

ADVERTISEMENTS

:i:li*liiiit!i:iiii*i;liiilliil:lil:il:i:ii:iiii:.,i,rilti*iriiiiiiliili:ill:iiil:ll:ii:i:il:lii:ii!;

Professional atffi/T{V recrurtrng.

Executive search and placement.

Elperienced servlces inthe search and placoment of manag6m6nt personnol for tho torest products Industry.

Your satisfaction is our future. All fees employer paid. / zl4 West Broadway/Suite 5O4 Eugene, Oregon 9740'l I (503) 484-7055

ADVER,TISING Order Blonk

s"-*

F-.\4 California Lumber lCLl trrpr.tb"

U y- c.',t"d Atr"ry

@Y L.A. (7r4) i46-55r2

s.J. (408) 297-8o7 1 Portland (l0i) 659 4852 1190 Lincoln Ave., San Jose, Calif.

LOCAL LUMBER hauling Southern California roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in Long beach. 3C Trucking (213) 422-0426.

WHY IS IT u nrrrt lltkcs rrp in thc

ntornirrs lt tcr slccIing rnrtlcr arr ad verttsccl blankct orr trn ltlvcrtiscrl rlltltrcrs und pLrlls o1'l lrdvclti:ed pujanlts.

I ukcs l bath in ltn lrdvcrtisctl trrb. sllrvcs titlr an ldvcrtisrrl rrzor. ulrslrcs u,illr ur ldvertiscri solll). l)uts olt ltdvcrtiscd elothcs. sits cloun to brcakt'ast of'advtr llscd eol'tcc. l)ut\ on rn eclvcrtiscd Irrt. ridcs to Iris offiec in an aclvcrtiscd clrr. tritcs uith ln rdvcrtiscd pcncil I Irett. ltc rr'lrtsr'r lu ;rrlr, ttirr'. r;tr itt: luclvcrtising docsn't p11,. uncl thcn. if a lrrrsirress isn'1 good cnougl) to aclvcrtise... lrc lrdvcrtiscs it firr sale.

Il I'ott bclicvc ir 1,our irLrsincss :rnd $rn1 ttl build it ,\DVt-RTlSh.

Rt-NtlNl)l.R: I)irlr'rcrrl lrust ilcconrl).rr\ thc eopr rorr stntj in lirl ellrssille'cl lrds JLrst Ltsa llrc instrtretions irbor c lo lrgurc thc iul()ur'r1. \\'hun lou errll in rrtis. uc ll tcll rou lhc lilrounl lilrl lru\t be se'nl lirr thc rrrl

w tOS AIIOELES AREA ffi

LUIIIBER AI{D PLYWI|(ID

Al Peircs Company

American Forast Producis Co. lCsrritos).

Amorican Forest Products C0. (Van iluys)

AmericanHardw@dC0........

Burns Lumber Co.

CalilorniaWhol€sale oivision

Caoihl Lumber Co.

Connor Lumber Sales

ContemporaryBuilding Products, Inc.

Coos Head Lumbsr & Plywood

Crown Diskibulion Csnler.

OooleyFor€sl Co., Inc. ....

Esslov&Son. D.C.

Farwest Fir Sales (213) 629-5206

Founhin LumberCo., Ed

Fremonl Foresl Producls

GallelEr Hardwood Co

Gemini Foresl Products

Geo(gia-Pacilic Corp. (213) 968-5551

Heooner Hardwmds.

HillLumberCo.. Mar

Hutl Lumb€r Co.

Hunlerwoodworks........ {213) 835-5671

lnland Lumb€r Co.

Lan6 Slanton Vance Lumber Co.

Larry Larson Lumb€r Co. . (714) 821-8100

Louisiana-Pacitic Coro

Mac&ath Hardwood

Marouan-Wolte Lumber Co.

osgmd Inc., Rob€rl S.

Pacitic Lumbor Co.

Pacific Madison Lumbst Co. 12131 773-2292

Pansl Tex

ParrLumberCo......

Malerial Distributors lnc.

Caryedbmrs, lnc.......

Carroll Moulding Co.

DEDoor'slnc.. ..(213) 686-1813

Wasco(Tashman&Assoc.)

SPECIAL SERYICES

Ace Saw & Supply

Oaily Saw Ssruico

oudleyBuilding Compononts

Hammermill

Lumbor Assn. ol So. Ca.

Mutual Moulding and Lumb€r Co.

Jamos M. Thomoson & Assoc., Inc.........

Wall ory Kiln

Wesl Cmsl Lbr. Inspecllon Euroau.

Adams & Co.

IRAilSMRTATI(lII

ChozenTrucking Co. (213) 775-1634

3C Truckin0

0uidn Truckino

Union Pacilic t{ailroad (Los Anooles)

Union Pacitic Rallroad (Long Beach)..

oRAXOE,

RIYERSIDE &

sAX BERIIARDI]IO COUilTIES

Ace Saw & Supply

Adams & Co.

Al Peirce Co.

All CmstForest Producls

American Forest Producls Co.

American Hardwood C0............

American Mill &

Co.

oeorgia-Pacific Corp.

Lewis Co., lnc., Palmer G. Alaska Div

Louisiana Pacilic Corp

McFadand Cascade

Union Pacific Railroad

VAXCOUYER International Foresl Products, Inc.

wAu-A wAtu

Union Pacilic Railroad

WEIATCHIE

LewisCo., Inc., Pa|merG.

YAKIl'A

LewisCo., Inc., Pa|merG.

ALBAIIY

Willamettelndustries,

8Eit0

Union Pacitic Raikoad

c00s tAY

Coos Head Lumber& P1yw00d c0RvALus

Hrrr880R0

Pormaoost Products Co

t(utAilt F LLs

Lumber Producls

ttKE 08WE00

Simon, Crablros & Ryan

tE0F0n0

Eyrn€Trucking. (800) 547-9655

Founlain Lumb€r Co., Ed

Lumber Producls

Union Pacilic Raikoad

GnE IEn mnlur0 A8E

Aloine Inlernational CorD..

J.tl. Baxler & Co.

B€l Air 0oor/Alpine Ven€ers, Inc. (800) 547-6755

ContaclLumberCo. ....... (503) 228-7361

oanl&Russell, Inc. (800) 547-1943

Dataline Corp.

Far West Fir Sales

FriesenLumberCo. ....... 1503) 397-1700

FumanLumber, Inc.

Georgia-Pacilic Corp.

HamolonLumberSalosCo. ......

Knollwood Corp.

Louisiana-Pacilic Coro

Louisiana-Pacitic Corp. ( B€averlon)

Lumber Products

Mccormrck & Eaxter Creosoling C0.....'..

NiedermevetrMarlin C0. (800) 547-6952

North Pacilic Lumber Co. . {800) 547-0440

Norlhwest Hardwoods, Inc.

PubUshersForest Products.. (800) 547-5579

SiskivouForesl Products

Sunrise Forest Products Co. {800) 547-1 771

union Pacilic Railroad.

W€stern Internalional Foresl

Producls... (800) 547-5744

nt00LE

C&0 Lumber Co.

tisrbsrl Lumber Co.

n0sESuRG Keller Lumber Co.

sAutl

Lumber Producls

SlavtonWoodProducts...

sEAsr0E

Agwood Mill & Lumber.

Tt0AR0

FullmerLumberCo.

Lewis Co.. lnc.. PalmerG.

wEl{0uIG

Wendling-NalhanCo., Inc...

BOULOER

Reid&Wright.lnc..

c0L0RA00 sPnrilGs

Therma-Tru, lnc.

c0t1{ERcE crTY

RWSoeciallies. Inc.

OE[VER

COLORADO

DenverfleserueSupplyCo.

Georoia-Pacilic Coro.

KooD;rsCo.. Inc.......

McFarland-Casade

Wasco(Factoryoirectsales)

GBAlr0 JUilCTt0l{

R W Soechllies. lnc. tollTAlla

BtLUt{GS

Georgh-Pacilic Corp.

SllzEtAx

McFarland-Cascade

BUTTE

Montana Pole &TrealingPlant

Union Pacilic Railroad.

ttssoutA

Louisiana- Pacif ic Corp

LewisCo., Inc.. PalmerG.

cAsPrB oresco Wyoming. UTAH

0G0El{

Georoh.Pacilic Coro.

sALi LAXE CIIY

Georgia-Pacilic Corp.

lmoerialWholesale

Macbealh Hardwood.

lJnion Pacilic Railroad.

Dale

For All West Coast specles, call or wrlte: Jim Fraser o Chuck Lewis 701 Welch Rd., suite 2219 Palo Alto, Ca. 94304

McGormlck

Santa

Wholesaling

B.E. Niedermeyer, Sr., founder of the Niedermeyer-Martin Co., a major Oregon wood products firm, died Nov. 16, 1981, at the age of 84.

He founded the Portland, Or. company in 1920, as a manufacturing and marketing organization for wood products in the Pacific Northwest. The firm grew to a corporation with sales of $60 million-plus per year and three affiliate companies: Plywood Components, Inc., Albany; National Wood Industries, Aumsville, and Pacific Wood Treating Corp., Ridgefield, Wa. Mr. Niedermeyer, chief executive officer for more than 60 years, retired from active participation in 1975.

A native of Portland, he graduated from Christian Brothers Business College in l9l3 and was a member of the American Wood Preservers Association, the Sierra Club and the Knights of Columbus.

Mr. Niedermeyer is survived by nine sons, six daughters, two brothers, a sister, 89 grandchildren and 38 great-grandchildren.

A Change Going On

'We are cutting Douglas fir posts and timbers from 6x6 through l2x!2 to lengths of l' to 40' with dapping, drilling and angle cuts' Also 2", 3" & 4" Economy through #l & Btr.

Give us a call on your cut-to-length inquiries.

Conveniently located between Arcata and Eureka, Ca., on the freeway at the Bracut Industrial Park. Rail or T&T shipments.

P.S. We still maintain an inventory of over a million feet of dry redwood uppers.

i=E horrrncrmill

5. InJUt'rllut. lu wurrl urrr5srrrrJ/,

something continuously. Often used with away: He hammered away at his homework. IMiddle English hamer, OId English hamor. See ak- in Appendix.*] ham'mer-er n. ham.mer-fest (ham'er-ftst). A town, port, and fishing center of norther Norway, on an island in the Arctic Ocean; the northernmost town of Europe. Population, 6,000. ham .mer.head (ham'er-hdd) n.1. The head of a hammer.

2. Any of several large, predatory sharks of the genus Sphyrna, having the sides of the head elongated into large, fleshy extensions with the yes at the ends. 3. A bird, Scopus umbretta, of Africa and southwestern Asia, having brown plumage, a large, bladelike bill, and a long, backward-pointing crest. In this sense, also called "hammerkop." hammerlock. A wrestling hold in which the opponent's arm is pulled behind his back and twisted upward.

Hammermill (Hdm'er-mil ) n. 1. A Custom mill utilizing the latest in moulder technology. 2. A milling operation capable of high speed double surfacing. 3. Laser guided straight line, gang ripping and resawing to your specifications. 4. Hammermill Manufacturing, Inc., 10647 Laurel Avenue, Santa Fe Springs, California 90670.(213) 9413254, (714) 522-0230.

ham.mer.smith (ham'ar-smith ). A borough of London, England, comprising the former administrative divisions of Hammersmith and Fulham. Population, 222,000.

Ham.mer.stein ll (hdm'ar-strn ), oscar. 1895-1960. American librettist and songwriter.

ham.mer.toe (hdm'ar-to) n. Pathology. A toe, usually the second, that is congenitally bent downward. ham.mockl (hdm'ok) n, A hanging, easily swung cot or lounge of canvas or netting suspended between two trees or other supports. ISpdnish hamaca, from Taino.] ham.mock2. Variant of hummock.

Ham.mond (ham'end). A city and industrial center of northwestern Indiana, near Chicago. Population, I 12,000. Ham.mu.ra.bi (ha moo- rd'be, hdm a-). Babylonian king and lawgiver of the 18th century B.c.

ham .per' (hdm'per) tr. v. -pered, -pering, -pers. To prevent the free movement, action, or progress of; impede. See Synonyms at hinder. -n. llautical. Necessary but encumbering equipment on a ship. IMiddle English hamperent.l

ham.per' (hdm'par) n. A large basket, usually with a cover. IMiddle English hampere, variant of hanaper, unNeeEn. ]

Hamp.shire' (hdmp'shir, -sher). Also Hants (Hdnts). Officially, Southampton. A county, 1,503 square miles in area, of southern England. Population, 1,436,000. County seat, W'innhecter