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Louisiana-Pacific Corporation.
Albuquerque, NM (505) 873-0511
Cloverdale ,CA (707) 894-3362
Fremont, CA (415) 657-6363
Rocklin, CA (916) 624-4525
Orange, CA (7 14) 998-6500
Phoenix, AZ (800) 227-4923
Samoa, CA (7 07) 443 :7 5ll
Serving the lumber, building materials and home improvement markets in 13 Western Sfates-Since 1922
Now you can use the quick turn-around treating seruices at Western Wood Treating. When we saA quick, we mean speedy (5 to 5 dags treating on dry stock) by the truckload. Our storage yard allows Aou to pick up at your discretion.
Our Osmose treating facilities are designed using the latest in treating technology. All processes are automated to assure the finest quality control auailable. We also operate under the rigid quality control procedures required bg both Osmose and the American Wood Preseruers Bureau.
Osmose pressure treated lumber, plywood and timbers from Westem Wood Treating prouide manA aduantages builders, contractors, and retail customers require. The ability of Osmose pressure treated lumber to preuent attack by termites, rot and decay and the enuironmentallg clean nature of the product makes it adaptable for a wideuariety of decoratiue and structural applications.
Give Tong Cline or Terry Galbraith a call at 976 / 666-7267 or 976/924-7775 (direct Sacramento line). Our prices are competitive . , , and we wiII show youthat we are tops in seruice, too!
BUSINESS FORECAST ISSUE
A BETTER YEAR COMING FOR HOME CENTERS
TIME FOR THINGS TO START TURN AROUND
PAC.MAN MACHINE IS INDICATOR OF FUTURE
SLOW ROAD AHEAD FOR STRUCTURAL PANELS
TRANSITION IS TREND FOR YEAR TO COME
CHANGES COMING IN HARDWARE BUSINESSES
FED POLICY MOVES TO STIMULATE ECONOMY
RECOVERY WITH STRENGTH, VIGOR EMERGING
INGREDIENTS AVAILABLE FOR 1983 REBOUND
WORST BEHIND BUILDING PRODUCTS INDUSTRY
SLIGHT IMPROVEMENT FOR WESTERN LUMBER
HARDWOOD INDUSTRY LOOKS AHEAD TO SPRING
THINGS LOOKING UP FOR FOREST PRODUCTS
GROWTH PATTERNS CHANGE HOUSING PICTURE
TO RISE
The Merchant
Publisher Emeritus A.D. Bell. Jr.
Editor-Publisher David Cutler
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Contributing Editors
Dwight Curran
Gage McKinney
William Lobdell
Al Kerper
Art Director Martha Emery
Staff Artist Nicola O'Fallon
Circulation
Kelly Kendziorski
The Merchant Magazine (USPS 796-56000) is published monthly at 4500 Campus Dr., Suite 4E0, Newport Beach, Ca. 92660, phone (714) 549-E393, by The Merchant magazine, Inc. Second-class postage rates paid at Newport Beach, Ca., and additional offices. Advertising rates upon request.
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THE MERCHANT MAGAZINE is an intlependently-on'ned publication lbr the retail, v''holesale and distribution levels o/ the lumber, building materials and hone intprovernenl business in the l3 Western states.
t\NE OF the results of the housing depresusion of the early 1980s was the extensive reappraisal of how and why America lives as it does. Every facet of the industry and its products and their effects upon society was looked at with a new eye.
The shift from traditional patterns in family units, life styles, financing and investment aspects is producing a very different market that is already having an impact on suppliers to home builders and those who furnish the repair, remodeling and renovation of existing shelter units. The real changes are only just beginning.
The shortage of housing is also producing novel approaches to the utilization of existing homes. New studies claim that as much as l59o of the nation's housing stock is under utilized and that building codes should be relaxed to allow apartments to be carved out of those single
family homes that have unused rooms. Proponents say that garages could also be remodeled to create new housing units.
The idea is sure to be controversial. There is nothing like wide spread relaxation of housing codes to fire up a neighborhood. Qf course, for years older homes in decaying areas have been divided into apartments and rooms for let. But to propose such a concept on a mass basis is sure to produce some heat.
In all these ideas there are vast implications for material suppliers that go beyond the usual confines of d-i-y. These new markets involving housing and extensive renovations could well hold the potential to be larger markets than even housing was in the halcyon days of the 1970s.
Whatever else the decade of the 1980s brings us, it appears safe to predict that it won't be more of the same.
By Frank W. Denny President, Home Centers Division W.R. Grace & Co.
HILE thE mediocre short-term indicators for the home center industry, particularly with regard to housing, have been discussed at length in the media, we feel the need to stress the "positives" of this expanding industry right up front. Its past and continued growth can be attributed to several favorable economic, environmental and social factors, the most important of which follow:
Favorable Factors
(l) The age of the housing stock increases the need for rePairs and improvements, while the increasing cost of new housing encourages peoPle to maintain and
Positive f actors regarding home centers outweigh the negatives. costs will inhibit f uture home center building competition will Put more pressure on gross margins and operating expenses.
upgrade their existing homes. The median sales price of a new single family house rose from $48,800 in 1977 to approximately $72,000 in 1982, for an increase of 8.1% annually.
(2) The 25-44 year old age group, with prime emphasis in the 35-44 sector, which rePresents the target customer, will grow aPproximately 2.8V0 and 4.190 Per year, respectively (1982-1987), compared to the total PoPulation growth of I .l 90.
(3) The rise in the cost of professional labor services is increasing faster than the cost of materials, encouraging more PeoPle to ''do-it-yourself " Labor services are forecast to increase at a6.6Vo average annual rate over the next five years versus a 5.6V0 increase in the cost of materials.
(4) The increasing awareness bY manufacturers of the "do-ityourself" potential is reflected in the improved design and Packaging of products and the extensive amount of literature available on the subject.
The following are what we consider to be the most significant negative factors impacting the home center industry:
Unfavorable Factors
(l) High interest rates, the scarcity of mortgage money, and escalating construction costs have all inhibited new home construction and housing turnovers, which are critical to the home center industry. Total housing starts in 1982 will be approximately 1,050,000 units, the lowest level in 36 years, with the projected rate of 1,850,000 units in 1987 still below the 2 million unit rate of 1978. Similarly, housing tur(l'lcasc turtt t0 Pagt'57)
I
FTERthreeFlyears of declining real estate activity,it's about time to turn things around!
Real estate construction and sales were dismal in 1982 primarily because of inept monetary management by the central bank. Actions speak louder than words. We all aPpreciate the lower inflation rates . ' but not at the expense of unusuallY high unemployment.
The absolutely overt accommodation since mid-summer is de facto proof that the policy was too restrictive earlier. Despite all of our past experiences with stop-and-go policy, the authorities drove the monetary system like an out-of-control car careening from one side of the road to the other, smashing into obstacles
Il'/cttst' tttrtt t() ltugc .5 1)
Construction activity should increase each quarter until at least mid-1984 . Pacific Northwest will lag the rest of the West.
lN the fourth I quarter of 1982, the dialogue, discourse and rhetoric re- garding our economyandour forest productsindustry increases with each passing day. Left-handed economists disagree with the righthanded while politicians do those interesting things related to election years. It results in a good news-bad news environment everv minute of every day.
A 20% increase in housing starts in'83. . a 10%.15 o/o improvement in industrial mar. kets possible . . remodeling and d-i-y "soft" in the early months of next year.
The ubiquitous video star PacMan says it all: If you are persuaded that inflation and low productivity rates must be corrected, the little "chomper" is the federal and local governments going merrily along with their overspending. If your view is that high interest rates and unemployment are more serious matters, then Pac-Man is the Fed, the supply-siders and those politicians who lack "compassion."
Looking at the total economy, one can only conclude that pure Reaganomics won't work. In the first place, it has failed because pure Reaganomics was never attempted. Adulterated Reaganomics has assisted in moderating inflation and now seems to be less of a barrier to interest rates. It could also be suggested that productivity is getting better if for no other reason than our current unemployment problem. Unemployment is and will be the problem in the coming months. If North America is to arrive at a robust economy, the unemployment picture must improve.
We think that there is every possibility for surprisingly better times in 1983 if our leaders in government, industry and labor point their efforts in the right direction. Our view is that "smoke-stack America" will not be able to provide what we need until there is a further shake-out in autos, steel, heavy equipment and even our own industry. These industries have either over-capacity or obsolete plants or both. Until the "survivors" can obtain the proper return on investment, the "world class" new plants will not be built and our economy will not surge until there is a substantial increase in capital spending.
Yet we are optimistic. Why?
It is clear that one of the biggest chores of the '80s will be the repair of our infra-structure. We are talking about roads, bridges, transportation terminals, waste disposals, pipelines, pnsons, etc., etc.
That's where the action will be. While these industries will require experts, computer programmers and engineers, it is also true that truck drivers, laborers, flagpersons and others will also be needed. We would suggest that here is where the answer lies as opposed to the growing idea of protectionism in the marketplace.
How does this all relate to forest
products and housing for 1983?
The desire and demand for housing is out there. It is not 2 million starts a year and hasn't been for some years. Nevertheless, we see a 20s/o increase in housing starts next year to 1,175,000 units.
Industrial wood markets should also be better. As interest rates decline and industry slowly recovers, we think improvement of 10-1590 over 1982 is both logical and possible.
The important remodeling and doit-yourself market may be somewhat "soft" in the early months of 1983. The unemployment figures are scary, and the consumer shows every indication of remaining conservative until things look better. This improvement should and could occur bv spring. In terms of volume and demand we forecast all of 1983 to be about the same as 1982.
The past and current promotion of overseas lumber export markets by both Canadian and U.S. manufacturing groups should result in gradual improvement next year.
Finally, if our scenario is a correct one, we project still another market for wood products that has great potential. If there is to be only gradual improvement in wood products markets over the next few years, the industry might really get serious about the light commercial market. Even the commonplace2 x4 can be used for a utile or decorative component. This is done in the West. Why not in the East?
To quote a noted television religious leader, we feel that 1983 will bring some better times for some in the industry. "Tough times never last but tough people do."
UU there is still some distance to go, it seems that structural panel manufacturers have turned the corner and are at the beginning of a recovery which will be quite a bit slower than any in the past. they've experienced
I'd like to emphasize that our view of the 12to l8monthsaheaddoesnot rely on a housing recovery for renewed economic growth.
Our stake in housing will always be important, and capable of further development. But the best growth
(Please turn to page 56)
Recovery underway will be slower than in past years best growth area for panels willbe non-housing markets. home repair and remodeling has emerged as no. 1 panel market.
EOR West- l- ern building products dealers, 1983 will be a year of transition. Next year should see the beginning of a sustained recovery from our industrv's worst depression in memory. And confirmation of market trends we have seen developing the past three years.
We expect some very good housing years in the I 980s, perhaps beginning as early as next year. But we think our industry's environment has changed -permanently. Georgia-Pacific is working to help dealers service a market very different from the 1970s, a market in which commercial and industrial construction, repairs and alterations and non-residential construction will rival housing importance. And a market in which
multi-family housing and smaller, attached single family homes win greater acceptance. We cannot predict when our industry will emerge from this recession. That depends on actions taken by the President, the Federal Reserve Board and the new 98th Congress. But we think chances of a sustained recovery beginning next year are better than many people think.
Lower short-term interest rates will help everybody-building products distributors, builders and financial institutions. And the July tax cut along with new savings instruments should make mortgage funds more available. Mortgage interest rates will remain higher than we would like, but they should be lower than anytime during the past two Years. The Reagan Administration's inflation fight will continue, we believe, persuading financial markets to lower the inflation premium on mortgage rates. As the cost of financing a new home closes to the key 120/o \evel, we expect a substantial housing recovery.
Nevertheless, fourth quarter Western housing starts climbed nearly ?-Os/o above last summer's pace, as interest rates moderated. Nowhere will lower home financing be more helpful than in the West, where the wood, aerospace and energy industries have been hit by recession, and where the Supreme Court's support for due-on-sale provisions has reduced alternatives to conventional home financing.
Next year we think there is an excellent chance that U.S. starts will improve to about 1.3 million, with Western building returning to l98l levels.
IFHE atmos- I phere for 1983 will change, but the opportunities for retail hardware/home center opera- tions will increase.
Managementwill be confronted with a
variety of new factors if they desire higher profits. Guide lines learned from management studies will become most important in formulating plans. Home centers will find the figures of sales-per-personemployed a firm basis for operation. Sales-per-customer averages offer goals to be attained on the sales floor. Sales-per-square-foot of sales space will become even more important in
attaining the maximum of return from existing sales space. This plus stock turnsbecomes the guiding line for success at the register.
Knowledge of the customer audience and the community will be vital to inventory mix. Knowing the actual dollar spending value of your shopping area will be an advantage that overcomes competition that is not
Continued good hardware business . . growth dependent upon management exPer. tise tighter controls more vital than ever . . . increased usc ol varied sales techniques.
willing to utilize "motivation studies for profit."
Personnel training is another valuable contributor to the Bottom Line. Use of training taPes, and training sessions to merchandise the advertising, and other in-store programs can add increased store sales. The ability of management to Provide information and instruction that develop sales potential will be critical. Management can also increase sales floor activity by better related merchandising procedures. Better store layout will combine related items, rather than group them in their basic logical department. Better use of existing displaYs bY using extended panels and uprights increases their effectiveness. This can garner additional square feet of display area without changing the base of the display unit. In all of these steps, though, the dealer must first consider how the consumer will respond.
The consumer is more cautious, more needy of advice and leadership. Today's consumer will use credit cards with more caution and more
Good chance a sustained recovery is beginning Western building will improve, taking a bigger share of the U.S. total repair & alterations will be flat next year . more remodeling in the'80s.
Single-family starts should rebound smartly, but multi-family housing's market share should remain at about370/o,compared to just 3090 in 1979. (More than two-thirds of those multi-family starts will be condominiums.)
In 1983 the West will account for nearly one-quarter of the nation's nonresidential building, up from just one-fifth in 1975.
Expenditures for repairs and alterations may be flat in 1983, but we think they will outperform housing this decade. In l98l Georgia-Pacific customers sold more product to doit-yourselfers and commercial remodelers than to builders for the first time in our company's historyan experience we may have repeated in 1982.
The rising cost of new construction and high mortgage rates are great incentives to remodel or rehabilitate existing structures-particularly the 30 million tract houses built in the two decades after World War II. Higher transportation costs and changing life-styles are making older, close-in neighborhoods more attractive, a trend we think will become more pronounced throughout the '80s.
Manufactured housing may improve to 275,0U in 1983, with much of the recovery occurring in the West. often pay in cash for projects.
Dealers will discover paint departments will require more actual sales space to adequately service the customers. Paint department employees will need to be sharper on color application and color mix as customers follow decorator advice. Other departments can produce more sales than in the past. Automotive is a good illustration. As consumers discover their mechanical ability they will tend to do more maintenance procedures to save money.
Plumbing will continue to do well. But with more diversified projects, in-store selling and instructional tapes merit consideration.
All of this points to the continuation of good basic business in the retail hardware/home center business for 1983. But not without controlled finances. Cash flow will continue to affect extended operation and must be considered by management.
A 9% to I I qo growth factor is possible with top producers easily hitting 129e.
fHEpastyear f was clearlv one of the worsi in the history of the Western forest industry.
A weak economy, coupled with high nominal mortgage rates, cut the annual level of housing starts to less than half of recent levels nationally, and by substantially more in areas with inventory overhangs from previous construction activity. Since housing accounts for roughly half of the demand for Northwest forest products, the impact on the industry was direct and severe. In addition, special circumstances-such as the high-cost stumpage contracts into which many producers are locked-have added critical additional stresses to the industry's condition.
Will 1983 offer any respite from these conditions?
The answer would seem to be a qualified "yes," for the following reasons. First, although the Reagan Administration policy often has been criticized as the source of the current weakness of the economy and the high interest rate environment, economic policy lags make it more likely that these circumstances are the result of previous policy actions and any recovery must similarly lag an initiation of new policy. That policy change-the Federal Reserve System's efforts to bring down money growth and the Administration's budget policies (based on the belief that private spending is ultimately more stimulative than public spending)-will have been in place for l8 months or two years when 1983 rolls around. This is likely to provide stimulus to the economy as a whole by 1983.
The recovery is unlikely to be rapid, recoveries from serious illnesses rarely are, but it will provide some demand-side boost to all sectors, including housing and other wood-products dependent markets.
Second, it is clear from the high levels of housing rents in many locales that the underlying demand for shelter remains strong. Because of the high nominal mortgage rates,
the mode of shelter demand shifted from owner-occupancy of new homes to rentals or increased density of occupation of existing units. The demand is there and will express itself as interest rates reach manageable levels. On the other hand, unless there is a dramatic shift in Federal economic policy which refuels inflation expectations, housing demand is likely to be less heated than in previous periods since it will lack the speculative element. Although this is a stabilizing factor and in the best long-run interests of the forest products industry, it is likely that housing prices will remain soft on average even during the recovery period. This softness will particularly have an impact on those holding inventories of
Some boost to wood depen. dent markels from the national economic recovery . . . less housing demand than in the past . . . lower consumer indebtedness a plus as is increased savings.
buildable land. It will also affect the construction component of housing.
Finally, cautious households have increased their savings dramatically (as a percentage of disposable income) in the past year or so and these liquid funds are poised to stimulate a recovery in both residential and industrial investment activity. Consumers also have worked off much of the installment indebtedness that would have made a strong re-entry into the housing market impossible.
Needless to say, the economy is in a precarious position, and there will be
(Please turn to page 55)
IThese are the author's personal opinions and do not necessarily represent opinions or policies of the Federal Reserve System.
THE eco- I nomrc recovery will be well under way in 1983, with continued and stronger expansion in 1984. For 1983 as a whole, real GNP should rise 3.690 with 1984's growth an additional point higher at 4.6s/0.
The construction industry has been the hardest hit sector in many Western states: California construction employment is off l59o in 1982 from low l98l levels. Lumber employment losses since 1979 in the West are significant: 7,000 jobs lost in Idaho, 3,200 in Montana (3090 of the total lumber employment), 25,000 in Oregon andmajor losses in Washington.
Mortgage rates (fixed term) are expected to decline gradually over the next two years, finally going below l29o in the final quarter of 1984, and variable rate mortgages will continue to be offered at lower rates.
The 1983 recovery in the national economy will not provide as much stimulus to the construction and lumber industries as did some of the forced draft recoveries of the past. Even though interest rates will decline gradually, the forecast is for a moderate increase in housing starts. Housing starts will rebound with a 2890 growth in 1983 to a level of just over 1.3 million units. But even in 1984, the level of starts will be just over 1.5 million-significantly less than the boom of the late seventies.
Demand for lumber and wood
Real GNP up in '83 & '84 . fixed term mortgages below 12o/" by 4th quarter '84 moderate increase in housing . . demand for lumber and wood products slower than in earlier recoveries.
products will grow more slowly than prior recoveries. Affordability problems will continue to pressure builders to down-size the units that are built and the trend will be for more multiple unit structures-both condominiums and apartments and away from detached single-family homes.
The long sustained non-inflationary economic growth that we expect should result in healthier, more stable construction and lumber industries than were produced by the boom-bust cycle of the last twelve vears.
r-EFORE we Ellook ahead to I 983, let's look back to early 1982. Remember when there were predictions of amid-summer rebound because of impending tax cuts, higher social security payments, empty pipelines, and a need to rebuild inventories? Remember when Washington said consumer spending would lead us out of the recession? Remember predictions of 1.3 to 1.5 million housing starts for 1982? I'm sure we vaguely remember some of these.
Okay, now a look at 1983 and the ingredients necessary for the longawaited recovery.
Prime Rate-The Federal Reserve and the federal deficit are the keys. Should the deficit reach the high levels predicted by some, government borrowing could send interest rates up again.
Mortgage Rates-In September of 1982 had dropped to l5-15.5q0, the lowest since May, 1981. Further declines were possible and 7690 of the major mortgage lenders were offering commitments on conventional mortgages. FHA and VA have re-
duced their mortgage rates to 1290. Add to this, further declines in interest rates, the fact that over 4O million Americans will turn 30 years old during the decade and most will be seeking a first home, and everything is looking good for a recovery. Right? WRONG!
All bets tempered by factors ol employment, confidence, lower interest rates, and available mortgage money. problems exist at the mill level, with foreclosures, fi. nancing and skilled helP.
Mill level-Log decks are extremely low and many areas are closed to winter logging. Also, there are reports of unbalanced inventories with some high grade lumber already in somewhat short supply. Inventories, at most levels of the market place, are nil with hand-to-mouth purchasing being practiced. A late 1982 or early 1983 rally could create shortages and higher prices.
Empty homes (foreclosures)Homeowners trying to sell their homes and builders their inventories. Both factors remain a hurdle to a quick-paced turnaround.
Mortgages-Home buyers still want fixed rate mortgages. When the turnaround comes, will the savings & loans be prepared? Will there be other sources for mortgage money?
Builders have lost skilled people during the last three years. Layoffs have sent them to other industries from which they would probably be unwilling to return.
What then? I predict homebuilding in 1983 will be above 1982 . f unemployment is reduced and consumei confidence returns. The actual starts figure for 1982 should come in at approximately I million. 1983 will see starts at 1.3 million if interest rates continue to decline, if employment rises, if mortgage moneY is available, and the biggest if . if consumer confidence returns.
What I haven't touched on Yet is the d-i-y market and professional remodeling. These two areas will continue strong during I 983, but the d-iy market, especially, will be controll!a Uy discietionary income and "spend now" or "save and see what's going to happen" attitudes.
S 1982 mer- Icifully comes to an end, there is mild op- timism and a strong feeling that the worst is over for the building products industry.
It will be interesting to view the results of the 1980-82 home building debacle on contractors and manufacturers of wood products. Some of the lumber and plywood producers have already closed their doors and others face serious problems with high cost timber speculatively purchased in the last two or three years. Without some kind of relief there could be even more casualties in the manufacturing segment.
Lumber prices higher, plywood and waferboard prices low. more wood use by repair, remodeling and renovation show comeback lor housing factory.builts a growth segment. .. by spring business will be fun again.
this as a strong growth industry for the balance of the 1980s.
Plywood and waferboard will be locked in a death struggle for the lower end of the panel sheathing market and prices will likely stay low. Not so in lumber and studs where mills will push prices up swiftly in an attempt to make up for the substantial losses suffered since 1979. This aspect will
be even more dramatic if production levels remain low as suggested.
The West with its high unemployment will likely be slower to recover than the South, but should be stronger than the Midwest and Northeast. The first quarter of 1983 probably won't be very strong but we expect by springtime this business will be fun once again.
Iumber's top customer-home building-is expected to improve only moderately from three consecu- tive terrible years, we can only look for slight improvement for our industry in 1983.
But, softwood lumber consumption is expected to be up 8.890 from projected 1982 levels to total 31.7 billion board feet.
million units. In comparison, 1982 should finish just under l.l million units. Looking back at past housing performances, some l. I millionunits were constructed in 1981. During 1980, some 1.3 units were built and in 1979, our measure of a "normal" year, 1.75 million new homes were constructed. To reach the 1.3 million units we are forecasting for 1983, general improvement must continue in the U.S. economy, interest rates must drop to a level the consumer can afford or qualify for, and consumer confidence must improve.
There seems no doubt that demand for building supplies will be improved in 1983 over '82 by at least 2590. Repair, remodeling and renovation will consume increasing amounts of products and those manufacturers and distributors concentrating on this segment will be well rewarded.
On sitenew home construction will be slow to gear up with developers and financial institutions adjusting to the new money atmosphere. Higher priced custom home building will roll right along just as it always does, but the big surprise could be in factory andlor mobile units going to the newly-retired market. We see
A look at the industry as of this late-October writing finds year-todate production to be 72s/o of normal, lumber orders at 7390 of normal and shipments at 7 ls/o of normal. For the same week in 1981, year-to-date figures reveal production at 8l9o of normal and orders and shipments at 7990. We expected 1982 to start slowly and rebound as it has in later months. Some may recall that just the opposite happened in 1981, when the year began at a relatively better pace and dropped off significantly in later months.
Recently the Western lumber producers saw their highest volume order week in some 16 months as orders tallied a90v/o of normal showing. Signs that industry may be picking itself off the bottom may be showing. Hopefully, the recovery for 1983 is beginning in the late stages of 1982.
While housing may not lead the way, it will be an important factor on the road to economic recovery. Home building should start the upcoming year at a 1.2 million unit pace and finish at a 1.4 million unit pace. When all figures are in on 1983, total housing starts should reach l.3
On a volume basis it would take I1.42 billion board feet of lumber to build our projected 1.3 million housing units. While that is well below the l6 billion board feet consumed by the housing market in our "1979normal"year, it would result in an increase of the projected 9.71 billion board feet that housing should consume when final 1982 numbers are tabulated.
All of our other markets show increases in consumption in 1983, compared to 1982 projected totals. Repair and remodeling should partially rebound, as a decline in interest rates will tend to encourage larger projects.
What we've seen in looking at the statistics is quite sobering, albeit 1983 should show a slight improvement. In the longer run, however, (Please turn to page 33)
Repair & remodeling will re. bound housing will hit 1.3 million units. other markets will be up slightly . . . board footage consumed will be up.
lN spite of the lgloom and doom attitudes of many politicians and the negative emphasis placed on day-to-day economic statistics by the press, the facts are that the building blocks continue to fall strengthening U.S. economy.
into place for a
All of this is important to the hardwood lumber industry because it is well recognized that as goes the U.S. economy so goes our industry. There is no magic that affects the fortunes of our business. We are not dependent upon scientific breakthroughs and new technology for business improvement in the short term.
General strengthening of the U.S. economy will bolster hardwood markets . . . inven. tory re.building can be expected . . . spring ol next year could be a boom time for hardwood.
Among the multitude of hardwood products,the furniture industry is considered to be the great money crop for the industry since that is the home for the largest volume of upper grade material. Furniture is purchased with discretionary income and anytime that the consumer feels that his future earnings might be affected, adversely, he will postpone
his purchases. The same pressures that are placed on the homebuilding industry by inflation and high interest rates affect the sale of hardwood adversely by restricting purchases to the building trade as well as to industrial users. Furthermore, if consumer items are not moving, the tremendous amount of hardwood required for the pallet industrY and railroadcrossties is reducedaccordingly. So with the general improvement in the economy that might be reasonably expected, we also might expect improvement in the volume of hardwood requirements in 1983.
As the U.S economy becomes more favorable and orders begin to pick up, furniture plants, flooring plants, and other industrial concerns will begin to purchase and rebuild inventories of rough material which it has not been reasonable to do for the past two or three years due to high interest rates and low sales volume. When this demand is passed on to the sawmill there might be some surprises in store for the purchasers and some scarcities could well develop because there are large gaps in hardwood mill inventories. The spring of '83 could be a real boom period in the hardwood industry.
Every part of the building sup- ply and forest products industry has weathered some tough times during the past three years. Those record breaking interest rates, highest since the Civil War, brought a lot of firms to their knees. Some didn't make it! But that's the bad news. Good news: the inflation rate and interest rates have come down dramatically. If these rates don't go back up, better times definitely lie ahead!
Our own distribution business bottomed out between the first and second quarters of '82. Business has been improving, very slowly, since that time. We think this trend is going to continue. It wouldn't be prudent to set our '83 expectations too high. However, a modest sales increase in
1983, combined with running abusiness as lean as possible, will have a very healthy effect on the bottom line.
My own personal estimate is that the inflation level in 1983 will remain around 60/o lt doesn't seem realistic to expect too much additional improvement in short term interest rates. It appears that they could certainly average around the 1290 level, in contrast to the horrendous levels
Slow upward trend . . keep your expectations for '83 modest. .. inf lation will remain around 6o/o ... conventional mortgages only slightly below 13o/o .. . repair & remodeling willmove up.
that started in the fall of'79 and persisted right up to the second quarter of '82.
Conventional mortgage rates in '83 will probably not get much under 1390, but some interesting variable plans, coupled with growing consumer confidence, will turn the housing curve in the right direction. The important repair and remodeling market will also benefit from the upturn in consumer confidence.
Our industry has been suffering for three long years. Many other industries began to feel the heat more recently. As a result, they will probably not enjoy the upturn that I think our own industry will see in '83.
Next year will probablY be another year where firms in our industrY should continue to pay close attention to business basics, especially to keeping expenses under control. However, if we can accomplish that objective, and tie it to a modest sales increase, we ought to be able to leverage our earnings up in the coming years. The best is still ahead!
THE Burling- I ton Northern Railroad has long been a hauler of the nation's forest products. Two ofour predecessor lines, the Great Northern and Northern Pacific, opened up vast timberland resources in the Northwest to an expanding nation during the late I 9th century.
Today, our railroad is the nation's largest rail carrier of forest products, in terms of revenues and sales. Forest products normally account for about 20s/o of our non-coal revenues each year.
Our state-of-the-art transportation network is useless unless it meets the needs of its shippers, efficiently and economically. Helping us to do so is today's less-regulated transportation environment.
These changes have enabled BN Railroad to "venture into uncharted
transportation territory" in an effort to become more responsive to individual customer needs.
To date, we've negotiated 25 rate and service contracts. Our customer is guaranteed a stable rate level and car supply; we're guaranteed a certain traffic volume.
Lumber reload centers combine energy-efficient, long-haul rail transportation with flexible, doorto-handle truck delivery, and BN Railroad has designated three independently operated centers: Sioux City, Ia.; Harvard, Ar.; and
Deregulalion's effecl on pric. ing ...an uplurn in April or May if interest rates do not increase . smaller housing units . . . a gradual economic increase.
w[?itei:the urbanization trends that have become evident in the past 20 years there comes a realization that the historic patterns of geographic growth are undergoing change that is affecting the housing picture. As an example, about half ol California's population now live within 60 miles of downtown Los Angeles.
Today, urban population growth is rocketing upward at a rate of 6.590 per year. This single statistic means a doubling of urban populations with-
in 1l years. Buildable land that will serve these centers will continue to become dearer causing affordable housing to become smaller in size.
In the 1970s most first time house buyers bought the smaller homes built in 1950-65 and new houses were bought by older and wealthier households which were upgraded by size and amenities. If and when mortgage rates approach the I I 9o range the upgrading syndrome will appear again. In the meantime the housing recovery will be a slow process and the mix will probably be a predominance of smaller and attached homes based on current affordability.
The shift of population that has occurred into the West and Sun Belt areas will probably cause them to capture as much as 70Vo of the total
Chicago. Attractive rail car rates compete with comparable truck rates, giving shippers another transportation option for their forest products shipments.
We're working with the plywood industry to increase bundle size, which will increase car capacity by as much as 2090. We're selectively disengaging from business that we cannot haul efficiently or economically.
We've the freedom to adjust rates more quickly-as the marketplace demands. For instance, last April we announced truck-competitive rates on lumber, plywood and particle board shipments that we feel saved shippers an average of $400 per carload.
High interest rates and a nationwide recession have devastated the U.S. construction industry, which last year weathered its fourth consecutive year of depressed prices and slack demand-some say its longest and deepest recession since the Great Depression. Recovery won't come overnight.
If interest rates remain at current levels, we expect a slight upturn in April or May, as construction gets underway.
Housing starts this year could reach 1.3 million, although much of that will be the smaller housing units and condominiums. We expect a gradual recovery in the industry for 1983, as lower interest rates prompt a release in the pent-up home building market.
national housing starts. This presents building materials sales opportunities due to increased market share in a 1.3 million national start year.
Commercial and industrial construction activity will be less robust in 1983 until vacancy factors decrease and capital investment programs increase which are dependent upon a general improvement in the overall economy.
We have had and will be in a con(Please turn to page 5 5 )
Increased urbanization means less buildable land; its higher costs dictate smaller houses .. . changes in historic geographic pattems .. old markets will require new approaches.
EXT year combines the traditional crisis elements of risk and opportunity. The door hardware industry in particular will be walking this narrow dividing line for most of the year.
Volalile interest rates will dampen confidence. record number of bankruptcies more two step distribution hardware retailing up Soh-$o/o . . . more builder buying from retailers possible.
The key to success will be identifying exactly what the risks are and where the opportunities lie.
The risks facing the industrY in 1983 are primarily financial. While the cost of credit remains high, inventories will continue at low levels. The volatility of interest rates will dampen any renewal of confidence. With bankruptcies forecast to be at a record high in 1983, everyone should approach his business with an air of caution.
Ignoring changes in consumer needs is a risk. Quality is increasing in importance. People are staying longer in their homes and as they invest in d-i-y and remodeling projects they want things to last. They will pay more for quality, but only to the exrent that they feel they are getting good value. In 1983 watch carefully as the market pushes further awaY from the traditional "good-betterbest" buying attitude and settles at the "good" and "best" ends.
ARKETERS and manufacturers of wood products should be able to start catching up with the severely suppressed demand for their products in 1983, if forecasters are correct. While no one is predicting that housing will be at the record levels of the 1970s, indications are that home building will make a respectable rebound.
Virtually all forecasters for housing paint an optimistic picture, and this optimism is based on something more than wishful thinking. This time, all-important interest rates 4,'e lower. Housing starts sre uP. And manufacturers, wholesalers and retailers are gearing up for increased business next year. This atmosphere of cautious confidence is, in my opinion, well-founded.
Dependent as it is on long-term financial commitments, housing needs, above all, a stable economic climate, which now appears to be more than a possibility. There is continuing progress against inflation, a favorable outlook for food and energy prices and wage settlements, and a shift toward somewhat easier money by the Federal Reserve Board.
All of these positive factors are
Those parts of industrY PrePared to look to less traditional areas could be the ones to come out of '83 as the winners. We are going to be oPerating in a "fast track" world. That means having the right product in the right place at the right time. The builder could well be looking for non-traditional sources of supply as his lead times shorten up, i.e.,retail outlets.
There is an increasing pull towards two step distribution as more retailers see the value of going through a wholesaler. The benefits include fast turnaround on orders, single sourcing, better overall discounts and lesq need to carry inventory. Careful examination of gross return on margin investment often brings surprising answers.
The female consumer, long a strong influence on d-i-y purchases, is becoming an active participant in
/Continued on next Page)
bolstered by the existence of the undeniable demand inherent in the so-called post-World War II babY boom bubble in the nation's population mix-a generation of potential home buyers who will need housing in the 1980s.
How much improvement can we expect in the next twelve months? The nation's forecasters are close together in their predictions for something more than l.3 million housing starts next year, a figure representing a 30v/o jump over this year.
Residential loan applications to (Continued on next Page)
Respectable rebound f or housing multiplier effect will aid retailers, esPeciallY remodeling and over'the' counter. .. HUD rePorts sharP gains in home loan aPPlica' tions.
(Continued from previotts page)
the market. The DIY Research Institute estimates that 3890 of "home improvement and repair d-i-yers" are female.
1983 will see a growth in hardware retailing; forecasts vary from 2Vo over 1982 to as high as 1690. Somewhere in the 5-890 range seems a likely outcome. National Retail Hardware Association 1982 Marketing Surveys showed 7.2V0 of all hardware retailing outlets as feeling "very optimistic" about 1983, and 46.2V0 are feeling "moderately optimistic."
Every part of the industry-manufacturers, wholesalers. retailerswill be forced to work together, becoming partners in success. Competition at all levels will be leaner and meaner. We need survival management techniques-but there are opportunities in the market for those who are preapred to go after them.
lN spite of low- Ier interest rates and the stampede of the bulls on Wall Street, SimpsonTimber Co. maintains a guarded outlook for homebuilding and its dependent industries in 1983.
We have selected a conservative approach to 1983 planning and are forecasting 1.2 million new home starts next year. While that represents ab ot a 20s/o improvement over the current year, it remains a very weak level of activity.
have declined dramatically and mortgage rates are down some, not much else has changed. The supply of lendable money is a question as savings and loans are still struggling. The economy generally is still very weak and recovery from the recession is likely to be slow and gradual.
Although we don't look for interest rates to return to their record highs, neither do we expect them to continue the recent rate of decline. The federal deficit will continue to (Please turn to page 33)
(Continued from previous page)
the Department of Housing and Urban Development are already showing sharp gains. On an annual basis, applications in the last half of September reached 576,000, compared with 183,000 in the same l98l period. October figures were running at an annual rate of 745,000 applications, representing about half of total residential loans.
Even for retailers whose businesses are not based on sales to the new home market, these figures should be good news. A healthy new home market has a multiplier effect, reaching into the markets for remodeling and over-the-counter sales. In a favorable housing atmosphere, lenders are inclined to be more reasonable about remodeling and renovation loans. And many new home owners start improvements to customize their dream homes.
Remodeling and the shoulder trade are important at all levels of the wood products manufacturing and distribution chain. The regional and products associations affiliated with the National Forest Products Association have produced many selling aids aimed at the home improvement market. Most of these publications are listed in the compendium published by NFPA, which includes order forms.
The brightest spot in the forecast is a substantial improvement in the West. We expect starts in the West to increase from an estimated 215,000 in 1982 to 310,000 in 1983. That means that 47.590 of the total national increase will be in the West.
Although short term interest rates
Wesl to get almost half of the 20oh expected increase in housing starts . . . lendable money supply a question . . more repair & remodeling smaller housing market in the '80s.
$50 billion each year on home improvement and that figure has been growing while the housing industry is at a standstill. Though there is strong competl- tion in the home improvement market, redwood holds a unique position as a result of over 70 years of promotion by the California Redwood Association.
In 1983, California Redwood Association will accelerate its promotion to the growing home improvement market while continuing to promote all uses of redwood to architects, builders and consumers. Studies have shown that manufacturers who promote and advertise during poor market conditions can increase their market share and re-
tain this advantage when conditions return to normal.
Soon, do-it-yourselfers will learn about a variety of redwood remodeling projects on the national PBS-TV series "This Old House." This popular series follows the complete renovation of a home and is aired by over 250 stations of the Public Broadcasting System. This season, CRA is working closely with the series producers as they demonstrate some of themanyuses of redwood inside and out of the house.
(Please turn to page 33)
More redwood promotaon planned home improvement market is important target... redwood involved in new tY. series on remodeling.
LDJ
More companies at all levels report intpro,-ed sales and business activity as the rvorst year for wood since the 1930s comes to a close trade f'actors and experts alike are virtually unanimous that 1983 will be an improvement over '82...
lndustry support signs continuefavorabIe: the prime lending rate down to 11.590, lowest since Sept.'80; variable rate mortgages as low as ll t/+ 9o I FHA/VA mortgages at l2Vt: a flat inflation rate; slight stirrings of an uptick in consumer confidence; lumber inventories at their lowest levels since 1973.
While housing starts were up in Oct. by only l9o (latest figs), bldg. permits for future construction rose a thumping l8To, bolstering talk that the longawaited housing recovery really has begun starts totaled l,|22,AOA on a seasonally-adjusted annual basis .
Single family housing starts were up | .3V0, multis crept up 0.5V0; during the lst l0 mos. of '82, 868,400 starts were made, down 9.690 from the year earlier fig. builders and realtors across the West are seeing more traffic and selling more new and used homes then they have for manymonths...
The wood industry has gained backing in its opposltlon to California Energy Standards with the election of George Deukmejian as gov.; he has opposed the Ca. Energy Commission and government involvement in business and commerce . The SP, St. Louis Southwestern and Santa Fe
RRs have filed suits challenging ICC approvalof the merger of the UP, Mo. Pac. and Western Pacific . .
Willomette Industries Inc. is skipping the stock dividend usually paid in Dec. for this year . Lotrisiuna-Pacific earnings improved for the second straight quarter Masonite Corp.'s net income lor lhe 4th quarter improved to $3,727,000
Sir James Coldsmith will sell off a portion of Diantond International Corp. to finance his takeover which will concentrate on developing and improving the West Coast timber operations & retailing operations Luntberjack Stores has opened a unit in Stockton, Ca., .
An employee buyout of the distribution div. of American Forest Products Co. is expected to be completed by the end of this mo. involved are DCs in Stockton, Fresno, Cerritos and Rialto, Ca., and Phoenix, Az., and their mgrs. Jim Ben Edens will head the new firm, Western Anterican Forest Producls, which is negotiating now to acquire Sou t h west Forest Indust ries' City of Industry, Ca., yard as the new home for the Cerritos operation, since that property is expected to besold...
84 Lumber has closed four greater Sacramento, Ca., area stores . Anderson Lumber, Bountiful, Ut., had a grand "reopening" to mark the completion of a 10,000 sq. ft. expansion and remodeling of its 25 year old store
. Phoenix, Az., planning commission demands continue to hold up the start of construction
on a new 84 l-urnber Cn. retail hardu'are & lumber facilitv . .
Brox'nson Lutnber Co., Wenatchee, Wa., is celebrating 50 years inbusiness TerrY Buildi ttg Center, Hollywood, Ca., is observing its l0th year of operation Hqller PhilliPs recently opened a new $400,000, 12,000 sq. ft. facility in Hobbs, N.M. Taylor Lumber Co., Pagosa, Co., is now owned by Taylor Lumber Inc., Everett Babb,pres....
Reel Lumber Service, Ana' heim, Ca., is remodeling its offices. . Grip Rite Internqtionalis the new name for the CriP Rite Group of building material wholesalers . . AII Coast Forest Products, Chino, Ca., has closed its E,ugene, Or., office Dougherl))-Honna Resourc'es Co. has opened a Reno, Nv., office
Roseburg Lumher Co., Roseburg, Or., has agreed to buy L o u isia n a- Pacific's mediu m den' siry fiberboard plant at Rocklin, Ca., subject to FTC approval . . Trus Joist Corp., Boise, Id., will begin construction of a $6.4 million residential Products manufacturing plant at Valdosta, Georgia. .
Empire Paci.fic Induslries, Portland, Or., which has filed for Chapter 11, is negotiating a sale to Timberland Industries Inc., Bellevue. Wa. . . . International Paper Co. has an on-site sales office at its new Gardiner, Or., wood products facility, Al Rega- lia, sales ffigr., with Darrell Nichols and Mark Strickland
Placerville Lumber Co., Placerville, Ca., has shut down its saw mill and planing mill, but is keePing the office open and doing someremanufacturing Reid & Wright, Inc., Arcata, Ca., is expanding its sales office and adding an IBM computer
;
7653 Telegraph Rd. Montebello, cA 90640 (213) 723-3301 r (714) 99a-62a0
1576 South 300 West Salt Lake city, uT 84115 (801 ) 484-761 6
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Portland Wholesale Lumber AssociationDec. 17, annual Christmas luncheon, I l: l5-2:45, Red Lion Motor Inn, Jantzen Beach, Or.
W.O.O.D.. Inc.Jan. 7, board of directors meeting, Marriott Southeast, Denver, Co.
Pacific Northwest Hardware &Implement AssociationJan. 9-11, convention, Sheraton Hotel, Spokane, Wa.
Lumber Association of Southern CaliforniaJan. 12'13, 19-20, Improving Your Leadership Effectiveness seminars, locations to be announced.
Los Angeles Hoo-Hoo ClubJan. 14, annual transportation night, golf and dinner, Montebello Country Club, Montebello, Ca.
Young Westerners Club-Jan. 14-16, annual education conference, Spokane, Wa.
930 Ashby Ave. Berkeley, CA 94710 (41 5) 843-4390
Main 0ffice 21 50 0akdale Ave. San Francisco, CA 941 24 (415) 647-0782
National Housewares Manufscturen AssociationJan. 17 -20, 7 8th Internat ional Housewares Exposit ion, McCormick Place/McCormick Place West, Chicago, Il.
Oakland Hoo-Hoo ClubJan. lt. dinner and initiation, Francesco's, Oakland, Ca.
Pacific Southwest Hardwood AssociationJan. lE' Sales Training for Key Employees seminar, association training center, Anaheim, Ca,
National Association of Home Builders-Jan. t2-25' convention and exposition, Astrohall-Astrodome complex, Houston, Tx.
Budrow & Co.Jan. 23, Annual Dealers Show, company facility, 14030 Gannet St., Santa Fe Springs, Ca.
National Woodwork Manufacturers AssociationJan. 29' Feb. 3, P.G.A. Sheraton, West Palm Beach, Fl.
Mountain States Hardware &Implement AssociationJan 30Feb. 1, Convention, Sheraton Tech Center, Denver, Co.
California Retail Hardware Association -Jan. 31, convention, Las Vegas, Nv.
American Hardware Manufacturers Association-Jan. 3l-Feb.
2. Winter National Hardware and Home Center Show, Las Vegas Convention Center, Las Vegas, Nv.
Intermountrin AssociationFeb. 3-5, Convention, Hilton Hotel, Salt Lake City, Ut.
Builder Marts of America, Inc.Feb.22-24, l2th Annual Independents Days products and management services expo, Atlanta Hilton Hotel, Atlanta, Ga.
International Home Center Marketing ConfercnceFeb. 26, Convention Center, Dallas, Tx.
National Home Center/Home Improvement Congress &ExpositionFeb. 27-March 2. Convention Center, Dallas, Tx.
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.
llEW YEAR'S Day sale at Forest IlCitv was an annual event in the Clevehnd market. It gave us the largest volume day of the year with traffic bought with radio advertising.
Radio stations can't sell commercial time on New Year's Eve. National advertisers don't want it. Most retailers shy away from it. The stations run all night long dance parties from 8 p.m. December 3lst thru 8 a.m. January lst. We bought 'em all-dirt cheap. The stations were happy to negotiate for a total package for this one evening.
Each year we sponsored the all night programs on as many as a dozen different stations at a cost that was less than our regular 12 page newspaper tab. You couldn't push a button on a car radio without hearing'that the "Annual Clearance Sale Starts Tomorrow (Today)
at all Forest City Stores. Free coffeefree aspirin for all shoppers." The radio promotion was backed up with a double truck ad in the holiday newspaper. Our headline read: "Starts today-New Year's Dav."
Except for the blizzard one year, the crowds were waiting for us to open the doors. Plenty of onesie and twosie damaged items, display models, weathered goods, and our overstocks and buyer's mistakes were promoted. Basic items were marked down a little too-to sweeten the pot.
New Year's Day gave us a great kickoff for our three week January clearance. It's nice to start the new year with a winning promotion.
Some holidays are a natural for home center promotions. Some will never work. Here are a few of my winners and losers.
VALENTINE'S DAY: A total flop. Twice we invested in promoting our stores for gift items. We used plenty of
hearts in our ads, ran a wishing well contest entitled "Win Your Heart's Desire" and even offered free gift wrapping. Nothing worked. I don't think it ever will.
PRESIDENT'S BIRTHDAY: Combining Lincoln's and Washington's birthdays makes a good handle for a short term sale. Clever merchandising is the key to profitability. Without carefully analyzing the merchandise presentation a retailer can get 22 cented into a corner with lots of traffic but only only a small dollar volume.
EASTER: Leave it to the ready-to-wear retailers. The week before has traditionally been slow for hardline retailers.
MOTHER'S DAY: Even though our chain merchandised housewares, giftware, small electrics, major appliances, television and audio, we could not peak these departments. The overall store figures did not reflect any significant increases.
MEMORIAL DAY: This signals the kick-off of the outdoor season. We were able to buy Sunday circulation for weekday rates for our tab section. Holiday store traffic was big. The average ticket was big. The total week registered the highest dollar volume of the year. Sales in every department were strong: summer seasonal is the leader. Lawn and garden, outdoor building projects packages and (Please turn to page 42)
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|Flun REQUESTS for a special Ycourse of action by HUD in regard to their "biased favoritism" to masonry wall construction are now on record.
Dean Drake, general manager and vice president of The O'Malley Company's retail division, Ray Lopp, vice president, Babbitt Brothers Lumber Co., Flagstaff, John Martin and Harry Horrocks, National Lumber and Building Material Dealers Association. Ward Hitchins, National Forest Products Association, and I met in Washington, D.C., with six HUD officials to present our grievances. Cal Brand, deputy assistant secretary of HUD, chaired the meeting.
Our delegation presented our position based on existing studies which document that wood construction has energy saving advantages over masonry construction. In addition, we pointed out that giving masonry construction lower U values than wood is misleading to the home-
owner who is paying inflationary utility costs.
We requested the following three courses of action by HUD:
(1) Investigation of the possibility of administrative relief, with HUD, through a regulatory process, withdrawing the masonry exemption in the states affected.
(2) An attempt to expedite the research
which is currently being conducted at the National Bureau ofStandards.
(3) Delay of any expansion of the masonry construction exemption in areas of 4500 winter degree day zones or less as PreviouslY contemplated in the HUD staff working draft dated April 15, 1981.
On this last request, will all of you who have written to Secretary Pierce regarding the masonry exemption staff working paper, please send to me copies of any official HUD response?
We are appreciative of the membership contributions on this very important program. We will keep you advised as further action is taken to insure that our requests are granted.
"t have attended this show for several years, and it is the best on€ | have seen anYwherei'
David H. Beene, President, Alamo Lumber Company, San Antonro, Texas
No other industry event presents the complete diverse range of Products for home improvement, remodeling, malntenance, decorating, recreational/leisu re and related needs.
See them all at the bigger-than-ever Eighth Annual National Home Center Show at the Dallas Convention Center, February 27'March 2, 1983.
"Our buyers found new products and gained from the displays of the manY products showni' Don Trioo, Senior Vice Presrdent, General Merchandrser-Hardltnes, Fred Meyet Inc, Portland, Oregon.
More than 1200 exhibitors will display thousands of products.. from building materials to tools, hardware and lawn and garden items. from plumbing and electrical to decorative products
everything your customers need to tackle their do-it-vourself projects.
"The Show also provides an excellent opportunity for-our buyers to pirticipate in some of the most rewardingslminais that are available in our industryi'
Rav H Cooney, Presrdent, Scotty's Inc. Wrnter Haven, Florida' Come and drscover why the National Home Center Show Seminar Program is considered unparalleled in the industry. The program is designed and presented bv successful retail leaders tn vour industry who have iaced and overcome many of the challenges that you face today.
February 27-March2
"Your attendance may be the best investmont you make all yeari'
Kenny Stout, Stout's Building Centet Mt Washrngton, Kentucky
See Home Center of the Year Award Winner ideas on display at the Awards Exhibit. See how they did it... how you can do it, tool Stop by the HOME CENTER Magazine's ldea and Marketing Centers for personalized research and marketing information.
PRE.REGISTER
I
"l would rate the National Home Center Show a 9+ on a scale of O to 1O. I also would like to emPhasize that it is a must for those lumber companies who have recentlY or who are thinking of converting to a home centor oPerationl' F.L. "Pete" Chown, Lamperts Yards. lnc.. St. Paul, Mrnnesota Seminar leaders will share their expertlse on such vital toprcs as: How to make the
most oroductive use of the space you have. New and effective merchandising, promotion and advertising techniques that really move products off the shelJ. Proven methods for recruiting and retaining top personnel and similar subjects.
Give and take ideas at round table discussions following the seminars. Talk about your bustness problems and successes as you learn about operations of other retailers. " as you meet with seminar leaders and participants' Gain ideas for your own ad programs at the tndustry's most comolete collection of home center retail advertising at HOME CENTER Magazine's Ad DisPlaY'
AT tTO CHARGE...SAVE $5.00... GAIIU PRIORITY HOTEL RESERVATIOilS
rREE PRE-REGlsrRATloN lNsrRucrloNs
1. Must be received in the show office by January 28, 1983. Confirmation of preI ,"gistration and hotel reservation forms will be mailed within three weeks Free . Oadges will be mailed after January 3, 1983
Z. Late mail registralions will not be processed. Register again at show' (At-show registration fee $5.OO)
3. hEGrsrRATioN coMPUTERIZED. ALL INFoRMATIoN MUST BE FILLED lN.
4. NO ONE UNDER 16 YEARS OLD ADMITTED.
IMPOHTANT: PLEASE LEAVE SPACE BETWEEN FIRST NAME OR INITIALS AND LAST NAME
FEBRUARY 27-MARCH 2, 1g83/DALLAS
IMPORTANT: In order to Process Your registration, your company's business activity must be indicated below:
(l) ! Retailer/Dealer
(J) !Wholesaler/Distributor
(P) tr Other (please describe)-
Note: Exhibitor personnel should not use this form. Please use form provided in Exhibitor Kit.
(Continued from page 24)
Addressing the nearly 600 attending the 89th convention in Denver, Co., Sept, 23-25, he pointed out that mortgage retirement accounts have been proposed by Sen. John Tower ofTexas as a means of allowing homeowners to pre-pay mortgage principal with tax sheltered retirement money. Funds invested in an MRA could be rolled over to a new MRA upon sale of the home.
"The benefits ofthis proposal could be enormous to all segments of the thrift, housing and building material supply industries," Beardall, pres. of Anderson Lumber Co., Ogden, Ut,, said.
"The Economic Recovery Act was designed to encourage savings and the repayment of debt is savings. Mortgage lenders would benefit as their loans would be repaid in less time, freeing funds for new loans. Funds attracted in this manner would provide a tremendous pool that could be re-invested in mortgages repaid by owners under a tax deferred savings program, he emphasized.
The MSLBMDA is writing letters to other associations, key lumber dealers and congressmen and senators in the Mountain States region, pressing for passage of MRA legislation throughout the 1983 congressional session.
Cal Brand, HUD; Douglas E. Ashy, pres. of the NLBMDA and Bob Mathias,
two-time Olympic Gold Medal winner, were among others addressing the convention.
Jack Davis, manager of the Pecos Valley-Houston Home Center, Roswell, N.M., took over as president. The first honorary life memberships were present-
ed to Carmon Allen, Wes Anderson, Max Ker and Chet Nortz.
See the Personals section of the November 1982 Merchant for names oJ other officers and directors elected-ed.
LIOUSING starts in the next l0years I Iwill top those of the past decade, predicts the American Bankers Association, but mortgage rates will not drop much.
Between 1972 and I 98 I the annual rate of housing starts was 1.668 million; between 1982 and 1991. the ABA forecasts an annual rate of 1.733 million housing starts.Of the latter number, 1.2 million are expected to be single-family units while 533,000 will be multifamily.
The bankers association says the real interest rate on mortgages will average
5 9o through 1991, far above the l.5 q0 real rate from 1972 to 1981, but far below the current real rate of ll.7 Vo , The real rate is the going rate minus inflation.
ABA looks for an average mortgage rate of l4.2Vo over the next decade. The association thinks thrifts will only be able to supply about a third of mortgage credit. but that commercial banks won't pick up much of the slack. The new money will probably come from the secondary market-pension funds, private investors and insurance companies.
The 79th annual WBMA convention/ building products showcase was just getting started as this issue went to press. See the Jan. issue for full coveroge with photos.-ed.
SUPERSTRUCTURE lrtth '80 't g J ar a"cles su0p0rls the Irldge a three egged pedestlan bridge bui t over tw0 rivers in Midland, N4i., t0 l0in three previously unjo ned areas. S0uthern pine pressure treated with pentach 0r0phen0l was used in the arch. deck. beams and rai ings
HIGHWAY FIRST, a high tensile smooth wire fence system, claimed t0 be the most signilicant lencing development since barbed wire, has been c0mpleted near l\4ina, Nv, The "HTF" system from Koppers Co,, Inc. can be pulled up tighter al0ng an entire fence line, resulting in a straighter, more eflective barrier with n0 l00se 0r saggrng wrres.
lffiilc G. torewood
,,Folderoea Plne Pine
We'd like to wish all you folks out there in lumberland a MERRY CHRISTMAS & HAPPY NEW YEAR!
May health,happiness and goodfortune shine on you and yours throughout this holiday season and the coming year.
im-provement in the sales of building materials has popped upin afewplacesduring recent days but the real change will come with the good weather of 1983. Let's look at a few things to keep in mind. I November 2 had little effect on President Reagan's game plan, although the course will be tougher, '83 housing starts will be 1.3 million and absolutely will not mushroom to 2 million in '84 or '85 as someone suggested recently. The soapbox must be pulled out from under both the Republicans and Democrats on the issue of Social Security.
* Increased unemployment was an expected occurrence prior to any economlc recovery. Neither side should claim victorv in the results on Election Day. Houjing will see no gain or loss as a result of new faces in Congress. Reagan is even more determined to diminish the role of government, even though the battles will be harder, with more injuries inflicted for the combatants on both sides.
Housing will neither gain nor lose from recenl changes in Congress .. local condltions will determine a dealer's busl. ness in '83. continued hlgh unemployment happy days ahead for some.
There is no magic in picking 1.3 million starts for '83. It is just sort of in the middle, or an average of numbers bandied about by economists, associations, corporations and a home builder I asked. Any number used does not tell a building material dealer what business will be like at home. At best, the housing start number is a barometer of the condition of housing nationwide. The recent irritating, misleading prediction of 2 million starts for either 1984 or '85 is a disservice to the industry. The perfect turnaround for this industry would not mean 2 million starts. With current capacity, major product manufacturers can only supply material for 1.7 million. People are always saying the nation needs 2 million starts a year to supply demand, but how many such years have we had in the last decade or so? One? Increase should be gradual and sustained.
The campaign of '82 brought out the worst in both major parties. Republicans were guilty of hypocrisy and the Democrats were guilty of deception on the issue of Social Security. Every effort should be made by both parties to avoid fear tactics, encourage candor, and open-
(Please turn to oage 33)
G!oue
New housing production next year will most likely register sharper gains from the current recession than had previously been anticipated.
Projecting further declines in interest rates under the Federal Reserve Board's new approach to monetary policy, panelists at the National Association of Home Builders' Residential Forecast Conference predicted that total housing starts in 1983 would range from 1.3 to 1.5 million units.
The economists were virtually unanimous in their belief that 1983 would bring an end to the longest and most severe postwar housing recession, although they did caution that next year would not push the industry back to the lofty production levels of the late 1970s, when annual starts exceeded 2 million.
Taupe, mauve, peach and seafoam are seen as predominant colors in paint for this year's home fix-ups. With decorators predicting a return to the romantic and elegant, other colors destined for popularity are lilac, dusty blue and casaba (a yellow-white).
Having trouble scoring because a secretary is screening your calls to a prospective customer? Try abtzz after 5 p.m. when the secretaries have left and the big shot might be around to answer the phone himself. ll|0
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few pundits envision a domestic demand situation like we've seen in the past-especially in the homebuilding sector.
what that means is that the Western lumber industry must work harder and smarter to keep those markets we enjoy today. And we must work to recapture those that have been lost through the years. Perhaps we'll even exit this current depression even stronger.
of government funds to bring down the unemployment rate. The result will be increased interest rates and high inflation. The circle will have closed and we will be back where we were just a short time ago. The suffering will have been in vain.
To me, 1983 marks the beginning of "happy days. " Our elected leadership must respond to these issues with courage and conviction. I personally think they will.
(Continued from page 17) make the government a formidable competitor for available credit.
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ly discuss the alternatives.
No one likes high unemployment. Unfortunately, it seems unemployment was a natural result in the path of economic recovery.
High unemployment is a tough bite to swallow, especially if your own job was affected. We face the danger now of the quick Congressional fix, the uncontrolled infusion
Repair and remodeling has been a very important market during the homebuilding slump, and we expect that to continue, with about a three percent increase in total volume in 1983.
At Simpson, we will continue to emphasize cost control, improved productivity and response to the demand of the market. The last is especially important. We expect to be highly competitive by continuing our tradition of quality and service. We
also are making a greater effort to work with our customers as partners, helping them promote and sell our products on the spot.
The key point for all of us is that we seem to have at long last reached the bottom and begun a slow and modest recovery. But that recovery will lead us to a much more modest housing market than we have known in the past. The challenge is to adapt our thinking and our management skills to profitably serving a different, highly competitive market.
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One of our primary concerns has always been to provide redwood retailers with the finest sales tools in the building materials industry.
We will continue to provide the highest quality advertising, publicity, literature and promotion for redwood during good times and bad.
If you are selling redwood, you're not out there selling it alone. There's a group of professionals working daily to tell your customers about redwood's beauty, performance and uses. Redwood has a pre-sold status.
OUTG0ING president (1) G.T. Frost (right) congratulates incoming pres. Ed Gavotto. (2) Don Gunvalson, Lumber 1, presents his products. (3) Ken Gochenour, Maple Brothers. (4) Warren Hoflman, personnel director, Dixieline Lumber Co. (5) Frank Youngman, distribution center mgr
Georgia-Pacific. (6) Bert Hernandez, Chuck Baldridge, Jim Frost, Frost Hardwood Lumber Co. (7) Clill Crandal, American Mill & Manufacturing (standing), Arl Crouthamel, Boise Cascade, a club past pres. (8) Pat Flanagan and Don Adams.
San Diego Hoo-Hoo Club combined Products Night and installation of officers with Ed Gavotto, American Mill & Manufacturing, receiving the gavel from outgoing president G.T. Frost, Frost Hardwood Lumber Co.
Others on the board are Bud Baker, Baker Hardwood; Bruce Frost, Frost Hardwood Lumber Co.; Mark Olson, La Mesa Lumber;Warren Hoffman, Dixieline Lumber Co. ; Jim Gilchriest, H.G. Smith; Bryon King, Baker Hardwood; Don Gunvalson, Companies of Lumber l; Wayne Raney, Boise Cascade.
More than 60 persons viewed the product display. Sponsors included American Mill & Manufacturing, Baker Hardwood, Boise Cascade Corp., T.M. Cobb Co., Dixieline Lumber Co., Frost Hardwood Lumber Co., Georgia-Pacific Corp., Helix Wholesale Co., Companies of Lumber l, Maple Brothers, Inc., Mouldings, Ransom Lumber Sales, and H.G. Smith Lumber Co.
T. Marshall Hahn Jr., president, has been elected chief operating officer of Georgia-Pacific Corp., Atlanta, Ga., and will, upon the recommendation of Robert E. Flowerree, chairman and chief executive officer, become president and chief executive officer in May 1983 when Flowerree retires from the later position, continuing as chairman.
Hahn, a director since 1973 and president since 1976, was president of Virginia Polytechnic Institute and State University for l3 years before joining G-P.
In a new analysis of short- and long-term economic prospects, "Ifte U.S. Economy: Outlook through 1995," Predicasts forecasts that the late 1980s and 1990s will be "a period of unprecedented prosperity" compared with the negligible growth experienced since 1973.
Theycite moderating inflation and interest rates, improved productivity, and a new wave oftechnological innovation as factors which will drive real economic growth up 3.490 annually between 1985 and 1995.
Predicasts says the U.S. is irreversibly evolving into a knowledgeintensive economy as opposed to a capital-intensive or resourceintensive society. Although this transformation will be painful for the "sunset" industries (among them, motor vehicles, iron and steel, and leather), excellent opportunities are at hand for "sunrise" industries such as robotics, biochemistry, and information processing.
Due to the continued growth of the labor pool i.esulting from the 1950s high birth rate, they do not foresee a
decline in unemployment until the late 1980s.
Predicasts anticipates a decline in the cost of capital funds and credit which will lower real (non-inflated) interest rates from the current abnormally high 690 to l-2v/o by 1995.
Replacement will account for the balance of durable goods demand, with consumers favoring luxury items which are more householdoriented, conservative and classic in taste and styling.
Services will remain the fastest growing segment of consumer spending.
Expansion of the housing market in 1983 will pave the way for construction totaling $167.5 billion next year, l2t/o more than this year's anticipated level of $140.1 billion.
George A. Christie, a leading economist, expects that residential construction will reach $80.1 billion, 3890 above this year's $58 billion.
"Housing, by long tradition a mixture of private enterprise and public subsidy, will be lacking much of its
former federal backing," the McGraw-Hill economist explained.
For next year's housing market, he sees a rate close to 1.325 million units with mortgage rates between 15-160/o by this year's end and by the end of 1983 down to 1390. He expects the strongest gain in condominiums and one-family houses with apartment construction gaining only by half as much as the other components.
If charges filed with the Department of Commerce and the International Trade Commission by the U.S. Coalition for Fair Canadian Lumber Irnports are upheld, a tentative duty on Canadian lumber will be imposed on March 7, 1983, and a final determination reached by July 7, 1983.
The coalition charged that "governments in Canada seriously injure U.S. industry by unfairly subsidizing lumber exports to the United States." In asking for a duty to be imposed on Canadian softwood entering this country, they also charged injury to the U.S. shingle and shake and fence manufacturing industries.
A Western retailer has attracted wood-loving customers during the holidays by holding a Christmas gift fair, which features handcrafted woodworkings sold by the area's craftsmen directly to the public.
Ganahl Lumber Co., Anaheim, Ca., is holding its third annual Christmas Gift Faire this month in its huge indoor lumber warehouse. With stacks ofcedar, fir, pine and redwood providing the backdrop, more than 75 craftsmen display their woodworkings that include old-fashioned wooden toys and puzzles, jewelry,
turned bowls, various household items and sculpture.
Christmas music, a Christmas tree, refreshments and Santa Claus himself add to the festive atmosphere. The fair is held over a weekend, two weeks before Christmas. Every item displayed and sold must be handcrafted from wood.
Two Colorado homes, a Victorian in Littleton and a remodel in Pinewood Springs, an office building in Greenwood Village, and a patio
The Merchant Magazine home project in Boulder have been cited for architectural excellence in the use ofwood products in the 1982 W.O.O.D., Inc. Architectural Awards Program.
Each year since 1967, W.O.O.D., Inc., a Colorado organization of retail and wholesale lumber firms which promotes the use of forest products in construction, has recognized architects for their outstanding use of wood in their designs. More than 70 architects entered this year's competition and each project was judged on site by a committee of lumber industrv leaders.
A Division of Coastal Lumber Company pnesents
r'Nothing But Tha Beatrr in
Appalachian, Northennr and Southern Hardwoods
Sycamorc Bagswood
Tupclo Ghcrry
Hackbcrry Hickony
Gdtonwood Hard I8oft
Maple
Aso lmported Handwoods Gum and Oak veneens and Oak Plywood cut-to-size Shipmerns by Direct Carload, Direct from our own Hardwood Mills
Truck & Tr:Lr. fnom our Los Angeles Distribution Yard
Our office is loented at: 999 N. Sepulveda Evd., Suite 314 El Segundo, Ca. 90245 r [213] 64G2548
Fluss Swift Donna Hammond Mike Kelly
WESTERI{ dealers, members of the advisorv board of the Western Home Center & Building Malerials Show, diScuss show details with The Merchant Magazine's editor publisher, David Cutler, (at righl) also a board member. The show will be held October 21-23, 1983. From lelt: Tom W. Watt, president, Brookhart's Building Centers, Colorado Springs, Co.: Felix Sanchez, president, Hacienda Home lmprovement, Inc., Albuquerque, N.M.; Frank Purcell, Jr., president, Builders Supply of Palm Springs, Palm Springs, Ca.; Norman Fox, v.p., Handyman, San Diego, Ca., The regional expo, tailored to the special needs of home cenlers and building malerials dealers in the West, will feature seminars as well as a show. lt will be held at the Anaheim Convention Center, Anaheim, Ca.
Amid optimistic forecasts of an upturn for housing and the economy, the National Forest Products Assn. held its 8fth Annual Meeting recently in Scottsdale, Az.
NFPA President William H. Stimpson said the outlook for 1983 and 1984 is "decidedly upbeat I think we can take heart that we're coming around the bend." He said: "Let's stick together; let's rebuild our markets-and our organizations; let's capitalize on our opportunities and our adversity-let's Program ourselves for success."
Guest speaker Briggs Napier, president of Briggs Napier Consultants, Inc., urged wood products producers to encourage home builders to devote more attention to imProving the livability and amenities of new houses by using wood products-exPosed wood, cabinets, moldings and builtins-and to promote these features in their sales efforts.
Donald R. Deardorff, president and general manager of Fourply, Inc., Grants Pass, Or., was elected new president. He succeeds outgoing President William H. Stimpson, Gulf Lumber Co., Mobile, Al. John R. Forrest, Boise Cascade Corp., Boise, Id., was elected first v.P. Robert F. Higgins, president of the Medford Corp., Medford, Or., was elected second v.p. and treasurer.
A study of formaldehyde gases released by pressed wood products ranks among the top l0 priorities established by the Consumer Product Safety Commission for 1983.
The effects of temperature and humidity on formaldehyde offgassing from these products will be examined with the information to be shared with HUD. Standards are expected to be recommended by 1985.
In 1984 the semi-annual National Housewares Manufacturers Association International Housewares Exposition will shift to spring and fall dates, according to Ronald A. FiPPinger, managing director.
McCormick Place and McCormick PlaceWest, Chicago, Il., will be the site of the March 25-29 and Oct. 8-ll,1984, shows. Discount
Working together, the National Housewares Manufacturers Association, American Airlines and Delta Air Lines will offer special low rate roundtrip air faresto Chicago forthe NHMA International Housewares Exposition in January, 1983, according to Ronald A. Fippinger, managing director of the association.
Shasta Cascade Hoo-Hoo Club, Redding, Ca., has selected George Rogers as "Lumberman of the Year."
The annual award is presented to the person who is deemed by his peers to have contributed the most to the betterment of the forest products industry and the local community.
Rogers, a graduate of Chico State, served in the U.S. Army in Korea. His lumber career, which started in 1960, includes U.S. Plywood Corp. (now Champion International Corp.), Redding Pallet and Reel and North Valley Lumber Sales. He is now corporate byproducts division manager and corporate traffic manager at Sierra Pacific Industries. Active in the Redding Elks Lodge and Redding Trade CIub, he is a past president and current board member of Shasta Cascade Hoo-Hoo Club.
He and his wife, Barbara, have three sons.
Exporting U.S. do-it-yourself products will be discussed by American and foreign experts at the International Home Center Marketing Conference, Feb. 26, at Dallas, Tx.
Preceding the 1983 National Home Center/Home Improvement Congress & Exposition, Feb. 27-March 2, at the Dallas Convention Center, events will include a session for foreign d-i-y retailers with leading U.S. retailers sharing their experiences. Ray Cooney, pres. of Scotty's, Inc., a Florida home center chain, will be among those participating.
No molfer whol your needs ore in building moleriols- dimension, glu-lom beoms, fimbers, Sunrise boords or Simpson Strong'Tie Hongersyou'll find them oll ot Mqllco. You con gef lhe specie, type, grode ond size in lhe quonf ity you cqn hondle qt fhot right price. lr'll be prof itoble for you, too!. Give us o coll.
PR0ELEM S0LVER is what those concerned with the construction of the Shelter Point office complex, Marin County, Ca., call these glue-laminated floor joists.
Glue-laminated floor joists manufactured by Standard Structures, Inc. have solved problems for those involved with the construction of Shelter Point, a set of five office buildings on Richardson Bay in Marin County, Ca.
Bigger than conventional lumber joists, Floorlams are drier and weigh about the same as the smaller joists. They use fewer pieces of wood to save construction time, according to the company, and are used on32" centers rather than l6" centers.
After a fork lift hoists several of the joists to the upper floors, they are dropped into place by two men. A special joist hanger that requires only four nails speeds construction and
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the typical spring fix-up merchandise peak this week.
FATHER'S DAY: Always promising. Always disappointing!
INDEPENDENCE DAY: Sometimes good! Sometimes terrible! Much depends on the weather. The stronger the Memorial Day sales the more disappointing the Independence Day volume.
LABOR DAY: Blah!
COLUMBUS DAY: A good handle for a one day promotion if you can merchandise some drop dead prices. Beware! In some cities retailers get nutty today. Customers get a little crazy too.
THANKSGIVING DAY: Even with the stores closed this was the traditional day to blast the "GetYour Home Ready for the Holidays" theme. The gifty type
saves cost. Being able to eliminate crossbridging because of the size and strength of Floorlam also saves time and cost.
items gave us the tonnage (thanks to trima-tree, housewares, major appliances and television and audio co-op). By experimenting we discovered that our lumber and building material sales did not die on December lst. When we aggressively promoted our basic departments through December l0th we maintained our volume in these basics until a week before Christmas.
CHRISTMAS DAY: When the economy was strong, and bonuses were common, the day after Christmas was a good day to promote big ticket sales: remodeling packages, major appliances, televisions, etc.
While holidays and sale themes give cohesion and justification to a storewide event-it's the merchandising that determines the success and profitability of the advertising expenditure. It takes impact, creativity and some bold price cuts to bring in the traffic.
Complete inventories and prompt delivery of the finest quality timber.
P.O. BOX 3175 o NAPA, CA 94558
& REMANUFACTURING
We specialize in:
. Redwood lumber products and hard-to-get items.
. 48 hour service on truck and trailer loads of custom milling.
lf we don't stock it, we can make it here in our new remanufacturing plant, the newest, most modern plant on the west coast.
For your inquiries call: RICK ROSA . DAVE SNODGRASS LOWELL WALL . STEVE HAGEN
,.THE LUMBER NUMBER'' iS 707.252.6142 "THE PLACE" 5747 Hwy.29, Napa, Ca. 94558
Douglas Fir. Redwood . Ponderosa and Sugar Pine
Whether your job is as ornate as the famed Carson Mansion in Eureka, Ca., or as plain as a do$ house, we have the experience and facilities to provide you with the unusual and uncommon in lumber, moulding and millwork items, as well as the ordinary, in any quantity you need. If we don't have it, we can make it. ) lust ask. A In Redwood, Union Forest Prodr-rcts has S4S and pattern lumber, architectural patterns; mouldings, mixed loads and units available LTL, TGpT and rail. A Also please inc[uire on clear Douglas Fir and Hardrvoods.
Bob Reid, Reid and Wright, Inc., has departed their Hawaiian offices to spend Christmas in Denver, Co., with son Richard, who heads the Reid & Wright office there, and his wife, Janice. Bob Jr., who heads up the Arcata, Ca., facility, and his wife, Kathie, are spending the holidays visiting family in Omaha, Ne. Bill Jacobson is back from a Hawaiian sales trip.
Steven P. Christie is now So. Ca. district mgr. of Rain Bird Sales Inc., according to Ed Sboemaker, director of sales and marketing.
Bob Bonner, California Sugar and Western Pine Agency, Sacramento, Ca., is currently celebrating 47 years in the lumber business.
Jim Twining is the new Ca. field sales mgr. for Builder Marts of America.
Gwen Roberts Torgler, for 25 yrs. an assistant to former Georgia-Pacific Corp. chairman of the board Robert B. Pamplin and presently corp. sec. and member of the board of the R.B. Pamplin Corp., has been elected to the board of directors of LouisianaPacific Corp., according to Harry A. Merlo, L-P chairman and pres.
J. Ken Porter has advanced to general sales mgr. , lumber, of Georgia-Pacific Corp., according to Ronald P. Hogan, vice pres. , distribution div.
Scott Woodward is now mgr. of Champion International Corp.'s Morton, Wa., plywood veneer and lumber operations, according to Al C. Smith, gen. mgr. of western softwood mfg.
William A. Hensler has rejoined Wickes lumber as senior vice pres., operations, according to Ieslie L. Hagen, senior vice pres. of the Wickes Corp. and gen. mgr. of Wickes Lumber.
Donald R. Deardorff, pres. and gen. mgr., Fourply, Inc., Grants Pass, Or., has been elected pres. of the National Forest Products Association for 1983, replacing William H. Stimpson, who will become chairman of the board; Robert F. Higgins, pres., Medford Corp., Medford, Or. is the new 2nd v.p. and treas.; John R. Forrest, senior v,p,, timber and wood products groups, Boise Cascade Corp., Boise, Id., was elected lst v.p. to succeed L.C. Heist, executive v.p., Champion International Corp., who is resigning at the end of 1982.
Dick Winkler, Laminated Timber Services, Ontario, Ca., has recovered nicely from a minor kidney problem suffered while in Brea. Ca.
Clint Ludeman, Davidson Panel Co., Anaheim, Ca., is the new chairman of the board of the Hardwood Plywood Manufacturers Association; Diane Montoya, States Industries, Inc., Eugene, Or., new director at largghas been appointed by HUD to the National Manufactured Housing Advisory Council.
Gustav Grube, Architectural Plywood, Inc., North Hollywood, Ca., has been elected chairman of the Hardwood Plywood Foundation; Diane Montoya, States Industries, Inc., Eugene, Or., is secretary.
Fred Pueringer has joined the sales team at DMK-Pacific Corp., Fremont, Ca., according to pres. Dwight Curran.
Pete Christensen has been appointed gen. mgr. of Wickes Forest Industries, Dinuba, Ca., reporting to Larry Grill, senior v.p., special projects; James H. Anthony is the new director of lumber manufacturing at Dinuba.
Wayne Wigle is new to sales at North Side Lumber Co., Philomath, Or.
Bob McBride, J.H. Baxter&Co., is back in Eugene, Or. , after an extensive sales swing through the Middle West, Southeast and Southwest.
Ron Knowles is the new mgr. of Scharpf's Twin Oaks Builders Supply Co., Eugene, Or., replacing Eldon Smith who is retiring after 35 years with the firm.
James A. Brandstetter has been named gen. mgr. of the Id. division of Chandler Corp., Boise, with John L. Hodgins promoted to sales mgr. and R. Bruce Robertson outside sales rep in eastern Id.
Cutler Lewis, Palmer G. Lewis Co., Auburn, Wa., vacationed recently in Palm Springs, Ca.
Jack Chamberlin, sales mgr., Eel River Lumber Co., Fortuna, Ca., is recovering from a recent heart attack.
Mike Phillips has been promoted to gen. sales mgr.-Portland office by Hampton Lumber Sales Co., Portland, Or., according to Gordon J. King, pres.
Paul Stanley, Harbor Pallet Co., Anaheim, Ca. , is the new chairman of the board of the Western Pallet Association; John E. Knepp, Cutter Lumber Products, Oakland, Ca., is pres.
Frank Regier is now in sales at Burns Lumber Co., Tacoma, Wa.
Raymond P. Elder has been elected v.p. and treas. by the Southwest Forest Industries board of directors who also named George E. Howison, controller, and Jene P. Lau, assistant treas.
Rudy Gonzales has joined Andersonia Forest Products as operations mgr. of the Chino, Ca., distribution div., according to G.E. Anderson, pres. Susan Sterton is now sales coordinator at the Phoenix, Or., sales office.
Paula Pedersen is now in sales at Oregon Moulding & Lumber, Lake Oswego.
John Osgood, Robert S. Osgood, Inc., Los Angeles, Ca., married Suzanne Flanden Nov. 13. The happy couple is living in Pacific Palisades, Ca.
Tim Fogarty, Osborne Lumber Co., Newark, Ca., attended a reunion of his World War II flight squadron in Florida.
Bruce Norlie, Norfield Manufacturing Co., Chico, Ca., has been in Canada on co. business.
Steve Ahl, All-Heart LumberCo., is back at Ukiah, Ca., hq. after a sales trip to the Hawaiian island of Kauai.
John O'Connor is heading DoughertyHanna Resources Co., Reno, Nv,; Ilfike Stilwell is in charge of sales; Laurie Mellinger is office mgr.
Harold S. Olson, Littleton, Co., has been named top residential ceiling salesman by Armstrong World lndustries.
John Whittier, Boise Cascade Wholesale Building Material Center, Grand Junction, Co.; Daryll Wulff, Gittings Lumber, Denver, Co.; Jeff Phelan, Weyerhaeuser Co., Salt Lake City, Ut.; Ivan Bakke, Chandler Corp., Boise, Id,; Terry Freeze, Thunderbird Steel Co., Albuquerque, N.M.; Harold Crow, Weiser Lock Co., Albuquerque, N.M.; Dave Fackrell, Champion Building Products, Midvale, Ut.; Sam Falsone, Weiser Lock Co., Centerville, Ut.; Don Foxhoven, Gittings Lumber Co., Cheyenne, Wy., and Cliff Willis, Boise Cascade Building Material Center, Cody, Wy., were named outstanding supplier,/ sales representatives for 1982 by the Mountain States Lumber and Building Material Dealers.
L.D. "Hote" Houghton is now with Wilson Lumber Co., Medford, Or.
Don Baldwin has joined P & M Cedar Products, Stockton, Ca., as national distribution mgr.; Bill Parks is new as national sales mgr.
Lance Duke, So. Ca.; John Blauser, Northwest; and Bob Jeffrey, Phoenix, Az., received Most Valuable Performer Awards from Champion International's building products div.
R. Brent Burdick is now asst. mgr. of Anderson Lumber's building material center in Salt Lake City, Ut.
Alice E. Hennessey is now senior v.p., corporate relations, for Boise Cascade Corp., Boise, Id.
Jim Rash is now pres. of Simpson Extruded Plastics Co., Eugene, Or. and a director of the company; Gil Oswald has become vice chairman while continuing as pres. of Simpson Timber Co., Seattle, Wa.
Hugh Mungus and Freddy Fungus, Mungus-Fungus Forest Products, have donated their 3-wheel, low-rider DeLorean lumber truck to the Bricklin wing at the Climax, Nv., auto museum.
(Please turn to Page 59)
New wood flooring and wall paneling by Paxport Mills are now being distributed by Lundgren Dealers Supply, Inc., Tacoma, Wa.
Installation of the maple flooring and maple and alder wall paneling, which can be vertical, horizontal, diagonal or random plank, is said to be relatively simple for do-ityourselfers. The wall paneling's tongue and groove design interlocks the pieces so that minimal nailing is required.
A product that uses a combination of solvents designed to release pigments from paint and inks is new from the Semoco Petroleum Corp. Graffiti Gobbler reportedly can remove paint and felt-tip slogans from almost all surfaces including bathroom and brick walls.
Sure-Hold, a wall-mounted maintenance tool holder that can store up to nine wooden-handled tools, is from Art Metal Products Co.
A new basic play system geared toward the younger child, ages l-6, is from Wooden Environments, Inc.
The Environment 1000 triangular system consists of a heavy-duty rubberized swing attached by nylon rope, a sandbox and an elevated platform. For increased profit, op- tional add-ons are available including a laminated slide, a second swing, a kiddie seat swing and a tent enclosure that fits above the raised platform.
The product is packaged in a take-home carton. No special tools are required for assembly. The modular pressure-treated pine unit has a 40-year warranty against rot and decay.
Nevamar Corp. has added seven new solid colors to its full line of decorative laminates. Its new solids are among l6 new laminates being introduced by the company.
For more information on New Products write The Merchant Magozine,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!
A new walnut color oil and resin finish for wood floors, which is said to seal, prime, finish and protect in one application, has been developed by the Watco-Dennis Corp., Santa Monica, Ca.
The treated surface reportedly becomes up to 2590 harder,to resist stains, traffic paths and scuffing.
The holder is made from22-gauge steel, has a corrosion-resistant, baked-on epoxy finish and is secured by four screws. Nine rubberized rings utilize gravity and the weight of the equipment for suspension of the tools.
A new, lightweight, high strength roofing material is being introduced by Frelen Corp.
Dri-Sheet, available in rolls of 600, 900, 1200 and 2400 sq. ft., is reportedly less than l09o of the weight of traditional 15 Ib. asphalt felt. The material is said to be highly resistant to ultra violet rays and tearing. Its pliability enables it to comform to irregular surfaces.
The non-smudging sheet can be used as roofing underlayment and siding backer as well as for home and ranch applications such as a weed squelcher and a crawl space vapor barrier.
Chamberlain-Featherlite, Inc. reportedly has cut inventory requirements in half for dealers selling its polystyrene storm doors with a new installation method, which permits one door to be used on either left or right hand installations.
The system is available on Futura doors, which are steel reinforced on the hinge and latch side, and can be installed by the do-it-yourselfer.
A second generation Thermcore storm door from the same manufacturer includes a system to reduce heat transfer and maximize energy efficiency and savings with a thermal break created by vinyl "C" channels and a solid foam core that separates the steel skins surrounding the entire door. Refrigerator type weatherstripping, a double finned vinyl sweep and optional dual glazing complete the total thermal system.
Thermcore doors are being sold through retailers at a suggested retail price of $199 to $229 or installed at $274.
Willamette Industries' lumber division has standardized its stud packaging, which now measures l3 pieces wide and 25 pieces high(45V2" x 37 Vz"),
The new dimensions reportedly improve the stability of a package of studs and allow for better space utilization on truck and rail shipments.
Macco Adhesives, has added three silicone sealants: two for general use and one for tub and tile use to its line of caulks. adhesives and sealants. These products carry a 20-year guarantee against drying eut, cracking or peeling.Cartridges are labelcoordinated with Macco's line of products. Shipments are packed with 12 cartridges to a carton and suggested retail price is $7.78.
The Dataline Corp., a leader in providing data processing systems to the building supply industry, claims a major technological breakthrough with their completely new computer system for the small to medium sized building supply dealer.
The System 525 comes completely programmed with software for inventory control, accounts receivable and sales analysis. It provides enough storage capacity to hold 3,500 inventory items and 500
customer records. The entire system, including a printer and visual display unit, is $12,900.
"During the last 12 years, we have realized that literally thousands of small building material and hardware stores simply could not economically cost justify a computer," notes Hugh C. Bell, Dataline's chairman of the board. "Yet, in many cases, the need for a computer was far greater than in a large yard. The System 525 is a major breakthrough in applications capability for the price. We know of nothing like it in this market."
The computer is aimed at those firms doing $500,000 to $2 million in volume annually. Dataline is offering a mail-in service program, whereby the system is repaired on an exchange basis rather than sending engineers to customer sites. There also is a full 60-day satisfaction money-back guarantee with each system sold.
A new portable spa has been introduced that reportedly requires only the space for its installation and a I l0 volt power line.
Viking Portable Spas are preplumbed, ready for use with a hookup to regular house current. No plumbing is necessary. The spa fills with a garden hose. A 20 sq. ft. filter is installed within the skirting.
All four models feature a % h.p. jet pump (2 speeds), a 1.5 kw electric heater with a thermostat and four therapy jets. Polyurethane foam insulation helps hold the heat.
A do-it-yourself garage door opener that serves as an intrusion warning system, detects life-threatening exposure levels of carbon monoxide and alerts homeowners to excessive heat from fire in the garage is being introduced by Stanley Automatic Openers, a division of The Stanley Works.
The new opener, called the StanGuard, is reportedly the first to function as both an automatic garage door opener and a 24-hour security system. The various fire, intrusion and carbon monoxide alarms are built in the door opener's power unit so there is no need for separate installation of each security feature.
It retails for about $325.
Acrolite, a new product from Acrolite International, is said to prolong life of mechanical, electrical and electronic equipment or machinery with metal parts and moving mechanisms.
It reportedly provides a shield to guard against dust, dirt, and any abrasive matter that can cause breakdown. A 6-oz. spray can cost $4.99.
Aqua
Plumb Shop has a new line of flexible hot and cold water connectors in nine different sizes with a variety of thread styles to accommodate standard sink and toilet water connections.
Speedi Plumb features are said to include reinforced PVC for long product life, which is FDA approved for drinking water, and flexibility that prevents crimping at installation.
Skin-packed in blue packages with illustrated installation instructions, the connectors are ready to use with no additional accessories necessary.
New Extend, a one-step rust treatment that reportedly turns oxidation against itself, is available from Loctite Corp.
It is said to work best when applied over existing rust from which loose scale has been removed. It combines the remaining rust with a tough latex polymer to produce a coating that is bonded to the surface. Treated parts turn black as oxides are modified.
Weldwood Consumer Products has two counter top merchandisers stocked with its products for the retailer.
One full color merchandiser carries Wood Trim Real Wood in 42 carded rolls in two widths. The wood trim in five wood veneers is available in iron-on and glue-on types.
Blend Stick is a color match repair stick available in a variety of decorator colors. This merchandiser includes a color header telling customers what the product can do and how to do it. It comes with 108 sticks in l8 colors.
To introduce both merchandisers, the company is offering a ' 'Big Bucks Spiff" promotion. Retailers can order the merchandiser direct and receive $25 in a cash spiff.
Tanaka has a new lightweight chain saw for farm and professional use. This 50.2cc model has optional bar lengths of 16, 20 and A inches and a power head dry weight of 12 lbs.
The ECS-505 has a worm gear automatic oiling system that operates from the clutch. All major parts of this unit feature ball bearing construction except for the connecting rods, which have needle bearings. The transistorized electronic ignition carries a five-year warranty.
has atquired tlte assets of
Denver, Colorado
Tlte andersigned initiated the transactiox and acted as financia/ aduisor to botlt partiet.
Newport Beach, Ca. and Incline Village, Nv.
M0UNTING FLUSH to the ceiling to provide maximum headroom in homes with low ceilings, the Nichols-Kusan fan is available in 38" or 42" conligurations. Part of the old Jacksonville line, the fan leatures a three-speed control, motor reverse switch, solid wood blades, optional light kits and accessories.
Bill Johnson
John Polach
Larry Hansen
Walt Hjort
Pete Gadenasso
Sonia Mastriana
Lill Bruccoleri
Susan McAtee
and all the folks at Hobbs Wqll Lumber Co., lnc.
Ranger spruce-pine-fir lumber manufactured by Blue Ridge Lumber Ltd. is now being marketed by Simpson Timber Co. The new line includes Rainguard studs, which are precision trimmed and milled with a special water-repellant treatment.
Until recently, homeowners with high hopes but low ceilings had to forego ceiling fans. Not eny more. American Pride's "space saver" ceiling fans are deigned for low ceilings. Backed by a l5-year limited warranty, these fans are easy to install and mount nearly flush with the ceiling.
both feature solid wood upper backs and sculptured seats with turned legs and spindles. All chair parts have been precision-milled.
The chair, complete with necessary glue and instructions, is packaged in its own self-display and shipping carton which is said to provide freight advantages for the retailer as well as occupy less space both in storage and on the selling floor.
New Easy Hooker water supply line packages featuring full color photos of the product have been introduced by Anderson-Barrows Metals Corp.
The chipboard boxes are designed to hang, taking up less shelf space. The photo on the package shows how the product should be installed for use with toilets and sink faucets.
American Forest Products Co. has added two chairs to its line of MasterPieces ready-to-assemble and finish furniture.
Made of imported hardwood, the colonial chair and the mate's chair
A new padlock introduced by the KBL Corp., the Kryptonite-4, has reportedly withstood assaults from 42" bolt cutters, hacksaws, pry bars, hammers and chemical freezing agents.
The design and size of the keyoperated lock offers a lightweight alternative to conventional padlocks or chain and cable combinations. The two part padlock has a heavyduty, U-shaped shackle design with tubular key locking mechanism. The U-shaped shackle fits into a cross bar that houses the locking mechanism.
Liquid Nails by Macco is available in a new 4 oz. resealable squeeze tube designed for do-it-yourselfers. It is blister-packed on a display card, which can be hung in several areas of a retail store for increased impulse buying.
Suggested retail price is $2.29.
A line of panel trim and ceiling tile mouldings is now being marketed bY Gordon Plastics Division.
The dent-proof panel mouldings are made for use as cove moulding, base trim, inside and outside corners, casing, edge cap and flush divider mouldings. Trim mouldings are offered in several profiles in brown and woodgrain colors for use on plywood and woodgrained panels. A gold and white panel trim is made for use with marble swirl and gold flecked tileboard. Color is moulded in on all the mouldings.
The Sevetta Showerlet is a plastic, contoured toilet seat with bidet-like functions by European Water Works.
Designed to be used by both men and women, the unit contains a printed circuit board that operates two heating elements. One that heats a fine spray of warm water and the
other that warms the toilet seat. Installation involves an aluminum flex tube hookup to the toilet's water tank. The product's electrical cord plugs into any existing outlet. The warm water spray and warm seat features are operated by buttons on each side ofthe unit. Suggested retail price is $465.
U.S. Stove Co. has introduced two new accessories for wood and coal burning stoves.
Designed to reduce heat loss and creosote formation while improving burn duration time, the new draft regulator, which will fit both 6" and 8" stovepipes, is installed between the stove and chimney. As the hot gases heat the chimney, the rate at which they travel increases and causes the hinged and weighted regulator flap to open. This lets cool room air into the chimney, reduces the amount of draft and slows the speed at which the fuel burns.
A clean-out tee, which also fits both 6" and 8" stovepipes, replaces a stovepipe's existing elbow and is easily removed for cleaning.
(Continued from page 8)
(like housing, small business, and the thrift industry) in a random and unfair wav.
So much damage has been done by this non-elected, single-minded procedure, that now we will probably see an inordinately long period of ease in an attempt to revive the mangled economy. The survivors will take what they can get! So finally,
builders and suppliers should see some improvement in their markets.
The recovery we envisioned for 1982 should be experienced in 1983. Construction activity should increase every quarter from now until at least mid-1984. Nationally, housing starts should reach about 1.35 million in 1983 and 1.6 million in 1984. Those are not great numbers when compared to fundamental demand, but they are quite an improvement from the 1.1 million starts of 1982. At the same time, commercial construction is in the doldrums and will not show much improvement until at least mid-I983. Unemployment will remain well over 990 for most of 1983, casting a cloud over commercial expansion.
Most of the larger markets in the West should have an improvement in housing starts of about 2590 over 1982. Pacific Northwest cities will do well to hit that figure. In Spokane and eastern Washington there are a number of major projects on the drawing board or in initial development. They will be rolled out slowly as interest rates approach l2slo to
December, 1982
l39o for residential financing and employment picks up. A l59o to200/o increase in residential construction is the expected level in the Inland Empire market.
Activity will be greater than projected if governments and private lenders introduce and implement increased volumes of innovative financing that encourages builders and buyers to move more aggressively. That would be a pleasant surprise for all of us . . but lt's About Time!!!
(Continued from page 15)
tinuing period of at least six months of bankruptcies, erratic demand, volatile money rates, and fierce competition putting bottom line profits under continued pressure. With the outlook of a so-so sales scenario those who plan will have already gotten their balance sheets in order by cutting debt and raising liquidity.
Debt ridden companies can pay off their bankers while demand is slack and the cost of money is high only if they concentrate harder on how to make money instead of pursuing unproductive sales and carrying unnecessary inventories.
There is some merit in planning for "recession as usual" by implementing tight financial controls which in the 1980s become more and more fashionable. Only cash rich, lightlyborrowed companies can afford the luxury of holding unproductive assets. Those cursed with heavy borrowing are the ones that will be working very hard just to pay their rL-.
creditors with very little residual for themselves.
There should be no gloom and doom on the part of those aggressive thinkers in our industry who will seize on the opportunities of concentration of asset management and marketing innovation. They will develop new markets by utilizing the entrepreneurial talents of their total staff through introduction and testing of new products, services, handling methods and well targeted sales and advertising effort.
Our current period of profit deficiency can be the positive force to improve our methods and our thinking to provide the means for individual
companies to grow at the expense of their rivals who refuse to adapt to the times.
DR. POZDENA
(Continued from page I1)
strong temptations to seek easy fixes which, in the long run, would only serve to exacerbate the problems of the economy and the interest-rate sensitive industries such as automobile manufacturing, housing and its precursor, the forest products industry. However, if such temptations are avoided, the pill should begin to taste less bitter in 1983, with a strong recovery underway by 1984.
Hampton Lumber Sales Company
Hampton Overseas 9400 S.W. Barnes Road 400 Sunset Business Park Portland, Or.97225 (503) 297.7691
(Continued from page 9)
area for most panel products will be the widely diversified nonhousing markets domestically, and the promising export markets in Europe and elsewhere.
The home repair and remodeling sector of the panel markets-where the retail dealer is our predominant channel to the public-has emerged in 1982 as the largest single outlet for structural panel sales. Out of this year's expected 16.5 billion square feet of total production, well over 5.2 billion feet will have been shipped to this mainly over-the-counter market.
Housing is expected to follow at just over 5 billion, followed by nonresidential construction at 2.7 billion and industrial applications at 2.6 billion. Exports (at about 575 million sq. ft.) and panels held in inventory will account for the remainder.
APA predicts that the home repair and remodeling market will continue to grow gradually but steadily to more than 6 billion sq. ft. by 1987. The major demand categories within the sector are home renovations, alterations and additions, which account for two-thirds of panel sales; and smaller home handyman projects, ranging from shelves and cabinets to dog houses, bunk beds and outdoor furniture.
A new promotional program for the nationwide wood products industry, under the umbrella of the Wood Products Promotion Council, is currently in the advanced planning stage for implementation in 1983.
After the hardships of recent years, a return to strong, coordinated wood products promotion is overdue, and we believe the Wood Products Promotion Council program will be the best vehicle to achieve it.
Overall, the prospect for the U.S. structural panel industry is for gradual recovery in the years just ahead, provided inflation can be held in check and federal overspending curbed. We forecast 16.5 billion sq. ft. of structural panel production in 1982, 17.8 billion feet in 1983 and 19.5 billion feet in 1984.
The structural panel industry will enter 1983 determined to unleash its best efforts in those markets where they'll do the most good. Continued commitment to domestic and worldwide market development is the industry's best answer to recession and underutilized production lines.
(Continued from page 8) nover has decreased from7.4v/o in 1978 to 4.4s/o in 1982, with a turnover of only 6.390 forecast in 1987. The effective mortgage interest rate is forecast at 16.090 in 1982 and, despite the abatement in high interest rates in general, is expected to remain above the historical levels of 9.00/o-ll.39o of the 1976-1979 period.
(2) The average size of a new single family house, after increasing from I ,7 I 0 square feet in 197 6 to 1,760 square feet in 1979, has decreased to less than 1,550 square feet in 1982, with this trend towards smaller homes expected to continue.
(3) The difficulty in obtaining necessary financing may inhibit construction of new stores. The ability to find suitable sites within specific economic parameters will be hindered by the rising costs of feal estate and construction. As occupancy costs rise, a more selective approach must be utilized
An increase in home center competition as the industry expands puts pressure on gross margins and operating expenses as units strive to remain price competitive and maintain market share through additional advertising and promotions.
(4) (5) Flat Bed Transportation: LL Western States "Service Comes First" Sward Trut,ry,ipp,n" P o Box,/'r"t*i';i,3' We Can Flake It.. All Your Custom Milling ond Potio Furnilure Needs Crown Kedwood Co., Inc. P.O. Box 577, Fortuna, Ca. 95540 (7071725-6147 JEAN NICHOLS
NINETEENTH H0LE lor the 180 golfers at the Shasta Lumbermen's Invitational Goll Tournament, Sept. 17, Redding, Ca., included (1) presentation of a plaque to Bruce Main in memory o1 his lather Bill Main by Don Frank (righl), chairman of the tournament, and Don Cherovsky (center), master 0f ceremonies. (2\ Winners were Rick Baskins, Bob Slockbauer, John Kelly. (3) Dave Schaller, Jim Hunter. (4) Robert & David West, Dick
and 0wen McKannay. (5) N. Eric Hagen, Dick Smallridge. (6) Bud Frank, Paul Taylor. (7) Earl Moore, Bob Turner. (8) Jay & Mike Robbins. (9) Wally Krause, Enoch lsraelson, Al Kerper. (10) Ken Ghiz, Franz Miller, George Kavooras, Bill Duchi. (11) Terry Simpson, Chet Gonczeruk, Al Ryan. (12) John Crane, Gene Sjostrand. (13) Ted Pollard, Sam Witzel. (14) Mac Mc0onville,
Heavy OilPentachlorophenol
Water borne Pentachlorophenol
G. Lynn Shurtliff
George Sisterhann. (15) Ralph Cardwell, Tim Mclndoo, Miles Butlerfield. (16) Terry Diehl, Bill Gray, George Sharp, Dorman Dane. (17)
Dricon Flre Retardant Cedartone ccA-c
"All green wood 18 not allke" Craig
It's a little late but I'd like to congratulate you too [on your July 60th anniversary issue], Your magazine has always been a tribute to the lumber business. I enjoy seeing and reading about the people I've done business with and some that we may do business with in the future.
It has taken a lot of hard work on your part to make The Merchont what it is today. Again, congratulations on your magazine.
Denny Hess
Bracut International
P.O. Drawer 4779
Arcata. Ca, 95521
The Merchont, October, p.54l. The story was done well and I know it will help our attendance at meetings.
John Newquist
Eel River Sales Co. P.O. Box 2345 Newport Beach, Ca., 92663
(Continued from page 45)
John Kendall, pres., Standard Lumber Co., Spokane, Wa., with his wife, Joan, vacationed on the island of Maui in Hawaii.
Steve Baugh is new at Gemini Forest Products, Los Alamitos, Ca.; he is the son of longtime lumberman Bill Baugh.
Bill Hayes, Delson Lumber Co., Olympia, Wa., and his wife, Patricia, are parents of a baby girl, Lindsay, born on Oct. 26.
John B. Fery, chairman and c.e.o. of Boise Cascade Corp., Boise, Id., has been awarded The Wall Street Transcript's bronze award for c.e.o.s in the forest products industry.
Ron Seitz is now mgr. of 84 Lumber, Damascus, Or.
From cutting a wedge to pre-fab'd crane pads or mine shafts. Angle cut, cross cut, drilling, dapping-We'll do them all to customer specification.
Thank you very much for the Second Growth article in your October issue (See
Drawer
lir:#.s.i$ifrtE.$fii.l.l'E$.#.lt$.:.i::r:lflll.tf':iiili$itf"Ti*:i::,+.,1,:iika::t*
A bath color coordinator, sales literature and sales aids are free from Tom Hoff, Mansfield Sanitary, 150 lst St., Perrysville, Oh. 44864.
For a free copy of their 1982-83 maintenance catalog, write Randustrial Corp., l33ll-NR Union Ave., Cleveland, Oh. 441?n or call (800) 32162.
For a free data sheet on knotty redwood write Sirnpson Timber Co., Development Ctr., P.O. Box 566, Redmond, Wa.,98052.
Three application guides on the proper application and use of architectural concrete form liners are free from the Symons Corp., 200 E. Touhy Ave., Des Plaines, n.60018.
Western red cedar shingle siding panel literature in color is free from Shakertown Corp., P.O. Box 400, Winlock, Wa.,98596.
Three new pneumatic-tire lift trucks are described in Bull4in f22I avulable free from Eaton Corp., Yale Industrial Truck Div., Dept. 147, ll0fi) Roosevelt Blvd., Philadelphia, Pa. l9l 15.
A32-p. full color catalogSales Aidsfor Successful Selling: 1983 Edition is available free by writing the Dismar Corp., 4415 Malton Pike, Pennsauken, N.J.0El09 or calling (W)257-7761.
Information f or dealers and distributors on wood moulding wall chart kits that can be tailored to individual
needs is available from Wood Moulding and Millwork Producers, P.O. Box 2527 8, P ortland,, Or., 97 225.
For free information on cabinet door slides, write Grant Hardware Co., High St., West Nyack, N.Y. 10991.
On all New Literature stories write directly to the name and address shown in each item. Please mention that you saw it in The Merchant Magazine. Many thanks!
Details on a new lever handle from Arrow Lock Corp. for use with its 150 series cylindrical locks is free from Arrow Lock Corp., 10340 Foster Ave., Brooklyn, N.Y. 11236.
A 160-p. paperback how-to book, Spas ond Hot Tubs, by A. Cort Sinnes is $7.95 plus $1 .00 postage and handling from HP Books, Box 5367, Tucson, Az., 85703.
A l2-p. envelope stuffer detailing American Pride ceiling fans is free from Nichols-Kusan, Inc., P.O. Box ll9l, Jacksonville, Tx. 7 57 6.
A brass lever sets and accessories brochure is available from Valli & Colombo, Inc., 1540 Higfiand Ave., Duarte, Ca.9l0l0.
For a free brochure on the Phiferglass SunScreen for windows write PhiferWire Products, Inc., P.O. Box 1700, Tuscaloosa, Al. 35403.
A copy of the Insulated Steel Door Systems Institute's data file is available free from them at 712 Lakewood Center N., 14600 Detroit Ave., Cleveland, oh., 44107.
For information on metal post wood deck kits, other wood deck kits or accessory kits write Oakwood Manufacturing, Inc., P.O. Box 519, Oxford, Mi. 48051.
A 28-p. catalog on tubular steel scaffolding is free from Vanguard Manufacturing, Inc., Temple Rd., New Ipswich, N.H. 03071.
A brochure on metalcutting saw blades made from Swedish steel is free from Kapman, Inc., P.O. Box 250, Waldese, N.C.28690.
A brochure on insulated steel door and frame units is free from Benchmark, General Products Co., Inc., P.O. Box 7387, Fredericksburg, Y a. 22Q4.
"The Beauty of Ceramic Tiles from Italy, " a four color brochure of applications is free from the Italian Tile Center, 499 Park Ave., New York, N.Y. lfi)22.
A brochure that identifies polyester film grades is free from Robert W. Marsh, ICI Americas Inc., Wilmington, De., 19097.
Water Pump
A color brochure describing the operation of Thermaflo water source pumps is free from Jacobsen Energy Industries, Inc., 651 Vernon Way, Dept. P, El Cajon,Ca.9?,02D.
LUMBER TRADER with established Southern California customer base. Forward resume./contact Fred Thomson, Inland Lumber Co. P.O. Box 190, Colton, Ca. 92324. (7t4t 783-0830.
EXPERIENCED lumber salesman wanted for direct & distribution yard sales in No. Ca. Contact Del Cole, Rounds, Cloverdale, (707) 894-3362.
BRANCH MANAGER
STRON(; well-established So. Ca. building rnaterials distributor looking for branch manager with proven track record. Should have experience in managing outside sales, order desk, warehouse and company trucking and delivery. Excellent opportunity for hard working, people oriented, hands-on manager sho can provide superior customer service and good bottom line results. Send resume to Box 466 c/o The Merchant Masazine.
EXPIIRIIINCED pallet salesman. Established territory with active accounts. Company paid expenses. Medical & dental. Ask for Carl Boesch, Hunter Woodworks, (213\ 77 5-2544.
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; $4. Box numbers and special borders: $4ea. Col. inch rate: $30. Names of advertisers usinga 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 month. PAYMENT MUST ACCOMPANY COPY.
We need good people with specialty type backgrounds for our growing Newport Beach, Ca. office for direct sales of forest products. We are a strong ($50 million in sales) national sales organization, with headquarters in Portland. Fringe benefits and compensation basis second to none. Unique opportunity for growth-oriented, action people. A team concept. In strict confidence direct all replies including resumes to: Ray Haroldson, president, Cascade Empire
Box 2770, Portland, Or.,97208.
EXPERIENCED sales pro seeks job as western area sales rep for established building produc{s distributor. Will travel. Write Box
IOR SALE 2 La Belle projectors Duo 16. Like new with $75 carrying cases. $225 each. Call Bob Dedman (602) 279-0886.
Place your ad now! Call (714) 549-8393
RARE 1929 Ford AA flat bed stake truck. Totally restored to original specifications. Needs minor electrical work. Was featured in our ad in The Merchant, October, 1981. Factory colors, black fenders, forest green body. Contact Clint or Pete (71 4) 75 l-0800 at Mariner's Foresl Products.
1976 INTERNATIONAL roller bed truck. 1800 series. Good condition. Good rubber. $4,500. 1965 Clark forklift. 6 ft. forks and 16,500 lb cap. Good condition. $8,500. (213) 9,11_At)O
FOR SALE two Hyster fork lifts, 1800 lb capacity. One at $10,000, one at $12,000. Call Beckman Lumber (213\ 636-0263.
Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Call Wm. Hunter, Hunter Woodworks. (213) 7'7 5 -2544',(2 I 3 ) 83 5-567 t.
PRE-1.'IT door machine wanted. Terms cash. Pret'er Norfield Magnum. Send complete information to Box 467 c/o The Merchant Masazine.
CUSTOM cabinet & formica shop for sale. Anaheim. Ca. Nice little business with excellent customers and referrals. Price $35K with $l7K down. Agent. (714) 7'72-8330
MARKETING OPPORTUNITY: storage yardlconcentration/distribution. 3 acres plus warehouse & truck sales outlet for your forest or building products. Puget Sound region (Wa.). Write Box 465 c/o The Merchant Maeazine.
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&26. F-.\*- California Lumber
546 t'l2
(.,r08) 29j.'Bt\7 1
(5t)j) 619 2r852
Lincoln Ave.. San Iosc. Calif.
The Lumbermens Rod Book listsall producers, wholesalers, retailers of lumber and wood products of any kind, and. all manufacturers ofwood furniture, cabinets and millworkmobile homes, pretab houses and modular unitswood recreational products. sportsware and toysboxes, 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 purchasing dopartmentthe financial strength rating (not alone the net worth, but what is available to creditors)the exact payment rating (how it pays: prompt, slow, very slow).
A Red Book credit rating is accuraie, because the man who assigned it is a specialist in the field we cover. His rating allows you to make an immedlate decision!
Please enter our subscription for Lumbermens RED BOOK service for one year. Bill us: $218.75 quarterly D; $437.50 semi-annually O; $875.00 annually E. Please send more intormation, without obligation O.
BUSNESS NAI\,E
Bonninolon Lumber Co. .
Buildind Material Distribulors
B€averlumberCo.........
Calrlornra Bay Building Supdy Co
Calilornia Foresl Producls
Calilornra Suoar & Weslern Pine Aoency
Cahlornra Sufur & weslern Prne Adenci
Dablo Trmbei Products
Euqene.Willamene Lumber Co
Fi@r Service Supply (SanJose)
Georora.Pacilic Coro.
Geordn.Paciic corb. {San Jos)
Golddn Gale Lumber Co
Harness Timber Prcducls
Hroorns Lumber Co. {San Josel
Hr66ns Lumber Co ll.Jnpn CrtvI
Hrddrns Lumber Co. iwalnul Cieek)
Hobbs Wall Lumber Co.. lnc
KelleherLumberSales..
Lealherbek Induslries. Inc
lracBealh Hardwood
Niesen'Ward F0r€sl Pr0d. (408) i79-2147
Noyo limber Producls. lnc P n 0 D Wholesale Drstflbulors
Redwood EmDtre, Inc.
Bolando Lumber Co., Inc
Srmoson Buildrna SuoDlv Co.
5rm0s0n I rmDer u0.
Tnanole Lumber Co.
ARCATA/EUREKA/FORTUIiA
Andersonta Foresl Producls
Bracul Internalronal
Biltt Lumber Co.
Crown Redwood Co
Louisiana-Pacilic Corp.
Eerd & Wfloht
Srmpson Birldrng Suppiy Co.
AUEURN/GRASS VALLEY
All-Coasl Forest Producls Inc
Ensworlh Foresl Producls
R&LWoodProducls
EAKERSIIETO
Pacilic Wood PreservinQ ol Bakerslield, Corp. (805) 582-3950
cHrc0
Norlield Manulaclurina
CI-OVEBDAI-E
Bowman Lumber Sales
G&R Lumber Co..
Rolando Lumber {Kinlon 0iv.)
Roundsoist Cenier... (707)
CORNIilG
Crane Mills.
F()RT EBAGG
Georoia-Pacilic Coro {Redwood)
Holm"es Lumber Co., Fred C
Niesen-Ward Foresl Products
FREMOI{T
DMK Pacific Corp.
Loursrana- Pacrf rc Corp
FRESiIO
American Forest Producls Co.
EaslonLumber, Inc..
Georoia-Pacilic Warehouse
HrqQins Lumber Co.
lnGinalronal Forest Products lnc
Lewis Co., Inc., Palmer G.
Pacilic Forest Producls
Standard Struclures, Inc.
XINGS EEACH
AqwmdMill &Lumber...
r0s 8Al,r0s
Slewa( Hardwood Lumber Co.
M00Esl0
Snider Lumber Products.
Sunrise Forests Producls Co.
Sward TruckinQ
REDDING AREA
Un o n Pacrlc Rar road ( Los Angeles)
tJnron Paclf r Rarlrmd (Long Beach)
Wail 0ry Kr n
Adams & Co All Coast Foresl Products Ameflcan Hardwmd Co Amercan lVrll & Manulactuftng Andersonra Foresl Producls B!rns Lumber Co
CaIlornra Trmbef Ine. Inc Caprlal Lumber Co
Keller Lumber Sales
Lewis Co., Inc., Palmer G.
Louisiana-Pacilic Coro. (Red Eluli)
Paul Bunyan Lumber Co.
P&MCedarProducls
ReddrnQ Lumber TransDorl
Web Lmber Co.
SACBAME},ITO/ST()CXTON AREA
Eurldrnq lilalerial 0islribulors, Inc.
Ca rlornia Burlders Supplv
CaIl0rnra Suoar & weslern Prne Aqencv
Caprlol Plywo,-od. Inc
F oor Service Supp y
Gabberl Lumber Sales
Georqra- Pacilic Warehouse
Hrooins Lumber Co
Ko-p"pers Co
Lewrs Co lnc Palmer G
Loursrana- Pacrlrc Corp
l\,lanaOemenl Res0u rces Ass0crales
lllcC0imrck & Baxler Creosot ng Co.
[.lcKuen lVoulding Co
Mello lnc
Nrkkel Corp The
P & [, Cedar Producls
Selzer Foresl Pfoducts
Srskryou Forest Pfoducls Slocklon Who esale
unron Forest Producls
Unron Paciiic Rarlroad
Waldron Forest Producls
Western Wood Ifealing Co
SAilTA ROSA AREA
J H. B evrns Co.. Inc
LeBeck Foresl Products
lVarlin Forest Induslries
Norlh Bay Foresl Pfoducts
Noyo Timber Producls. Inc
Nu Forest Products
Standard Structures 1707) 544
Wrndsor l\4rll. Inc
UKIAH/CAtPELTA/IAIILLITS
Aqwmd l\4ill & Lumber
AII Hearl Lumber Co . Inc
Carler Foresl Producls
Coasl Wood Preservrnq. lfc
F0resl Prod Transporiat 0f 1707) 462
Lrllle Lake Ind!stnes
Redwmd Coasl Lumber Co
Timber Realrzalion Co
t/tlEE0
Srskryou Foresl Products
WILLIAMS San Anlonio Pole Consl Co
Freeman & Co Stephen G
Fremonl Foresl Producls
Georgia-Pacilic Corp
Golding Lumber Sales
Hammermil lvanulaclufl nq, Inc
lnland Lumberco. .......
Inland T mber Co
Ke leher lVoulding Co nc
Koppers Co nc.
Laminaled Trmber Servrces. lnc
L-P Drslribution Cenler
MacBealh Hardwood
lVariner's Foresl Products
lvarquart Wo le Lumber Co
Newporl Panning Mrl lnc
Pacrlic Lumber Co
Pane Tex
Patr Lumber Co.
Peterman Lumber Co.
OREATER
Virginra Hardwood Co. Weslern Wmd Preservers lnslilule
AUBUBI{
Lewis Co., Inc.. PalmerG.
EETI.It{GHAM
Jersledt Lumber Co., Inc.
8NEilENT|!il
Lewis Co., Inc , Palmer G.
EVES€TT
Lewis Co., Inc Palmer G.
t(Et{1{0RE
Lewis Co. Inc., Palmer G.
xrEKLAt{0
Simpson Building Supply Co.
t0liGvtEw
UnionPacrlic Railroad
0tYtttPtA
oelsonLumberC0.. (800) 426-6040
SEATTLE
Bel Arr Door/Alpine Veneers. Inc
Georgia-Pacilic Corp.
Simpson Timber Co
Unron Pacitic RailrGd
Wasco (Maicro Ind.)
sHEtlotl
Simpson Burlding Supply Co.
SPOKAIiE
Georgia-Pacilic Corp
Lewis Co., Inc. Palmer G.
Spokane Tribal Wood P.oducls
Union Pacific Rarlroad
TACOiIA
American Plywood Associalron
Bel Arr 0oor/Alpine Veneers Inc
Burns Lumber Co.
Georgra-Pacrlic Corp.
Lewrs Co., Inc., Palmer G Alaska Drv.
Louisiana- Pacrlic Corp
iicFarland Cascade (800) 426-8430
Union Pacifrc Rarlroad
VAI{COUVER
Inlernati0nal Foresl Producls, Inc
WALIA WATLA
LJnion Pacific Rarlroad
WEI{AICHEE
Lewis Co., Inc Palmer G
YA(IiIA
Lewis Co , Inc , Palmer G.
Ar"8At{Y
Wrllamette Induslfles, Inc
EENll
lJnron Pacrfic RarlrGo
c00s 8AY
Con.ad Wood Preserving Co.
Cms Head Lumber & Plywmd
c0RvAt us
Eonninglon Lumber Co
Evans Products Co. (HardbGrd)
lVary s River Lumber Co. (503) 752-0218
EUGEI{E/SPRINGFI€tD
Be'Arr Door/Alprne Veneers. Inc
Eohemia, lnc. {800) 547-6065
Eugene-Wrllamelle Lunber Co.
Fremonl Foresl Products
Georgra-Paciic Corp.
Hlrl & Wood Lumbef C0. (800) 547'8927
Lewis Co.. Inc. Pa mer G
Lumber Producls
lVcFarland Cdscaoe
McKenzieTrading Co (800) 547 6067
Rolando L umoer Co States Induslries, Inc. (800) 547'8928
lJn0n Pac'fic Rarlroad
HEPPI{ER
Krnzua Corp
HILLSEORO Permapost Products Co
JOSEPlI
Joseph Forest Products
KLAiIATH FATIS
Lumber Products
MEl)F(,R|l
Andersonra Foresl Products
EyrneTrucking. ... (800) 547-9655
Founlarn Lumber Co Ed
Lumber Producls
Snavely Forest Products (800) 547-3039
Unron Pacilc Rarlroad.
Wendling-Nathan Co.. Inc.
GREAIER POETLAI{l) AREA
J.H Baxler & Co.
8el Air 0oor/Alpine
Veneers,lnc. (800) 547-6755
Cole & Assocrales, John L
Conlacl Lumber Co (503) 228-7361
Danl&Russell,lnc..... (800) 547-1943
Datalrne Corp
Friesen Lumber C0. (503) 397-1 700
Fullmer Iumber Co.
Furman Lunber, Inc.
Georgra-PacricCorp
Hamplon Lumber Sales Co
Lewis Co., lrc.. Palmer G.
Loursiana-Pactfi c Corp.
L0uisiana-Pacrlc Corp. ( Beavert0n)
Lumber Producls
lVcCormick & Baxler Creosolrng Co
Niedermeyer'MarlinC0 (800) 547'6952
Penberlhy Lunber Co.
Permaposl Producls Co.
Publishers Forest Products (800) 547-6633
Srskryou Fo.est Producls
Sunrise F0rest Products C0. (800) 547'1771
Unron Pac,fic Ratlroad
Weslern lnternational Foresl Producls (800) 547-5500
RIODTE
C&0 Lumber Co. Herberl Lumber Co
ROSEBUSG
Keller Lumber Co
SALEM
Lumber P.oducls
SEASIOE
Agwood Mrll 8 Lumber
S()ULOER Red & Wilghl. lnc
c0t0RAo0 sPR|l{Gs
Therma-Tru, Inc
C()IIIMERCE CITY
FW Speoallies, Inc.
Weslern Turnrngs & Slarr Co
|lEI{VER Denver R€serve Supply Co
Georgia-Pacilic Corp.
Koppers Co.. Inc.
McFarland'Cascade
Snavely Foresl Products
Wasco (Factory Direcl Sales)
FT. Cotulls
Weslridge Foresl Producls, Inc.
GffAIID JUIICTIOI{
RW Specialties. Inc.
SrruliGs Georgia-Pacilic Corp.
S0zEitAtl
Brandeberry, being employed in lumber interests they had in the San Francisco, Ca., area.
Willine Brashears, longtime lumber industry member, died August 30, 1982 of a stroke. Born March 2, l9l7 in Leola, Ar., she was 65.
An executive secretary for much of her career, Miss Brashears was a graduate of the Draughn Business College, Lubbock, Tx. She joined the Pelican Bay Lumber Co., Klamath Falls, Or., in 1942, remaining until 1948, when she went to work for Peter A. Albertson and the late E.C.
All-Corst Forest Products, Inc.........
American Hardwood Co.....
Arizona Pacific Wood Prcsening Corp.
Baugh & Associates, William E. .....
BeaverLumberCo.....
Bel-AirDoorCo.......
Beverly Manufacturing Co.
Blevins Co.. Inc.. J.H.
Bonnington Lumber Co.
Bowmsn Lumber Sales, Inc.
Bracut lnternstional
California Wholesale
CarrollMoulding....
Coasl Wood Preserving, !nc...........
Crane Mills.
ln 1962 Miss Brashears began an I 8 year stint as executive secretary for San Francisco lumberman A.D. Bell, Jr. She was involved through his interests in accounting and financial areas in Hobbs Wall Lumber Co., Vacaville Lumber Co. and Willits Redwood Products as well as The Merchant Magazine, in which Bell had an interest until 1974.
Miss Brashears is survived by a sister, a brother, two nieces, one nephew, two great-nephews and three great-nieces.
Crown Redwood Co.
3CTrucking
Dooley Forest Co., Inc.
DMK.Pacific
Essley & Son, D.C.
Fishman & Affiliates, Bill.
FontanaWood Preserving, Inc.
Fountain LumberCo., Ed
Freeman& Co., Stephen G...
Fremonl F0rest Products
Frost Hardwood Lumber Co.
Furman Lumber, Inc.....
G & R Lumber Co.
Golding Lumber Sales
Hampton LumberSalesCo. ..........
Heppner Hardwoods
Hill LumberCo., Mrx
Hirt & Wood LumberCo., Inc......
Hobbs Wall Lumber Co. Holmes LumberCo.. Fred C.
Your best source for redwood and cedar fuom the people who really tno*. *i / also handle Douglas fir C & better finish and exterior plywood sidings. //
