Merchant Magazine - December 1985

JimHand

fim lawson

Francis Rich

Betsy Bendix

Raul Bernal

Lynn Bethurum

Eva Castro

Joan Daniels

Tony Fredrickson

Scott Green

Scott Halliday

Richard Harvey

larry Holquin

Itun Hynick

Mike Iohnson

Mac Jones

Curt Karstrom

Joe Kayda

Robert Malone

Janet Parrella

Mike Parrella

Frank Pharr

Bill Pritchard

Bob Pritchard

Diana Rapp

Melinda Thylor

Gihert Tones

Nathan Ti'uehitt

Frank Via

Pam Winters

Wally Wolf

Publisher Emeritus A.D. Bell, Jr.

Editor-Publisher David Cutler

Senior Editor Juanita Lovret

Assistant Editor Davrd Koenig

Contributing Editon Dwight Curran, Gage McKinney, Ken Thim

Art Director Martha Emerv Staff Artist Carole ShinnCirculation Dorothea Creesan

The Merchant Magazine (USPS 796-56000) is published monthly at 4500 Campus Dr., Suite 480, Newport Beach, Ca. 9266,0, phone (714) E52$m, by The Merchant Magazine, Inc. Second-class postage rates paid at Newport Beach, Ca., and additional offices. POSTMASTER: Send address changes to The Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Advertising rates upon request.

ADVERTISING OFFICES

T-ROM WASHINGTON STATE. OREGON & IDAHO: contact Crrole Hoh. Phone (200 3404680.

FROM NORTHERN CALIFORNIA & ARIZONA: contact David Cutler. Pnone (714) 852-199u.

FROM SOUTHERN CALIFORNIA: contact Cad Vrnn. Phone (213) 472-3113 or (714) 852-1990.

SUBSCRIPTIONS

Change of Address-Send subscription orders and address changes to Circulation Dept., The Merchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.Lnclude address label from recent issue ifpossible, plus new address and zip code.

Subscription Rates- U.S.: $9-one year; $15-two years; $2Gthree years. Foreign: one year payable in advance in U.S. funds-Canada or Mexico: air-$35; surface-$30; South America: air-$55; surface-$30; Asia: air-968; surface-$30; Europe: air-$98; surface-$3O. Single copies-$2; back copies-$3 when available plus shipping & handling.

EDITIORIAL

I N fffrs annual business forecast special issue I we present a number of forecasts from industry experts to help you in your planning for 1986. Many deal with the changes likely in the near future. The implicit challenge is for the reader to cope with and understand what new developments mean to the individual and the world in which he works and lives.

Recently we ran across a letter that puts into perspective this business of coping with change. It was written almost 157 years ago by then governor of New York Martin Van Buren, still eight years away from being president of the United States. Addressed to President Andrew Jackson, it is dated January 31, 1829.

Januart 3l' 1829

TO: presidenr Jackson

The canal system of this countrJ is being threatened by the spread of a new form of transporlalion known as roilroads, The federal government musl preserve lhe canals for the following reasons:

One. If canol boats are supptanled by railroads, serious unemployment will result. Captains, cooks, drivers, hostlers, repairmen, and lock tenders will be left without means of livelihood, not lo mention lhe numerous frtrmers note employed in growing hay for horses.

DAVID CUTLER editor-publisher

Two. Boat builders would suffer, and towline ship ond harness makers would be left deslitute.

Three. Canal boats are absolutely essenlial to lhe defense of the United States. In the event of the expected trouble with England, the Erie Canol would be the only means by which we could ever move the supplies so vital to woging modern war.

As you may well know, Mr. President, railroad carriages are pulled at the enormous speed oJ I5 mila per hour by engines which, in addition lo endangering life ond limb of possengers, roar and snort their woy through the countryside, setting fie to crops, scaring lhe livestock and frightening women and children. The Almighty certainly never intended thal people should lravel ot such breakneck speed.

Martin Van Buren

Covernor of New York

What Governor Van Buren said wasn't factually incorrect, yet it so obviously demonstrates (from this vantage point) that he had no understanding of the dramatic revolution the railroads would produce in the sleepy society of the early 1800s.

We wonder if computers andtheir ilk won't produce even more dramatic revolutions in our world. Will we be ready or will we be left behind, standing there with the tow line in hand, wondering what happened.

SEASON'S GREETNNGS

"The enormous speed of 15 miles per hour'

Consumer sales will remain sluggish

HE YEAR 1986 shotrld be cxtrenrell interestittg f'or thc naticlnal economy in general and l'or 0ur industry in particular

Thc cconomic lactors of slorv growth u'ith t'lat and, early on, lorrer intcrcst rates arc exanrplcs of' the contradictions currently bcittg notcd in the cconoln\'. L orl\Lln)er sales, ils evidenced by thc record 3.3rb C)ctober, 1985, dcclinc, *rll contir.rue their sluggish pattcrn as real irtcctt.t.tc growth sloris. Rccctit I'arlill ittconrc growth rras primarill' dcrircd l'rorn an additional lia-ee carrier cntcring thc rvork force, rathcr than highcr individual earnings. .\s thc cntpltrrrttcnt 1'rielttrc flattens, household incomes tcnd tiot to erpand sufliciently' to absorb the prcsence of nerv retail outlets. Thcrcl'ore erpansion must primarily be achiered at the expense of cxisting nrarket participants.

The primary industry econontic l'actors facing lumber and building nratcrial retailers nexl !'ear rvould appear to be flat housing starts for the contractor supply'scgment and the beginning of thc nratLrration cy'cle for thc honrc improlement retailing segrncnt. A. u .trh-rcgrttcrtt. home improvenrent retailing *ould appear to bc accelerating toriarcl rnaturitl' as Builders Sqrrarc, Horne CIub, N'lr. How, Honre l)cpot and Home Quarter. roll orrt t hcir a!!tcrrir r crpatl.ion plans. Fclr thenr oiclcnce of this rush

to nraturity is tlie earll' on entr""- and erit ot' Bori ate r and Homecrafter \\ arcnouses.

In this enrironnrent, productivity and cost controls, both difficult achicrcmcnts in a tast grorvth mode, bccclnrc c\cn more critical to those etrrrrptrrric' rr lrie lr rr ill hcerlnte national conccrns in thc nert several years.

Productir itf in our industry is hcarill' ske*ed to invcntory productir.ity and carn and turn managcmcnt skills are magnilicd in a tight economy. Produetivity inereu'e' ltre most readily achier ed r iu irttpror cd systems which reduce thc cost of processing merchandise and paperwork and provide quantified reports ot' relative productivity' rates lor stttall segments of the inr,'er.rtor1'. ln other words, today's merchant ntust be ,.'rn,.prn.', 1 rr ith thc .rodue tir itf tlf t'h:rnrrners as opposed to prior concerns of the hardriare department.

Thc nranufacturing side of the industr) nrust be prodded to incorporate fea{ures such as UPC coding on the nrcrchandise to further facili-

Story at a Glance

Economic factors are contradictory...household incomes cannot support new retail outlets...aggressive expansions will push out some retailers... earnings growth will come from better management of in. ventory and employees.

tate irnproved productirity. \\'ith the inl'orrnation cxplclsion in our industry, rnanufacturers rvill be choscn on the basis of on tinrc shipping and older fill riites as c'lpposed to pricc and in-storc service.

Emplol'ee productiritf is the other obvious critical factor. Approxirnatelr l0ro of nrost oper?ting o\crheads is pa1'roll related. The successful operator uill managc thcse payroll dollars to optimize customer scrvlce ri hile pror iding satisfactory rcturns of capital. \\'ith maturation upon us, the succcssful rnid-to-long term operator *ill bcnciit from a hase of loyal customers which price alone cannot provide.

Salcs pcr cn'rployee and gross margin dollar per employee measurerncnts should bccome as familiar to thc succcssful operator as prel'ious standards such as sales per square lo()l and avurflgc dollar transaction.

On the other hand, manufacturers must also movc tolvard maximizing tcst standards to become or remaln a low cost producer in toda-v's world market.

In closirrg, I l'eel tlre ltontc iniprorement segment uill continue to expand at an approxinrate l0o,o annual rate for the next several 1'ears. Retailing in general rvill not erperience real gro*th of any significant size and I therefore feel that retail earnings in gcneral will be flat. The individual market shares of 1985 do not comparc *ith those of 1980 and they will continue to shift in 1986.

Earnings growth must therefore corne from better management of irrr gn1sr1 and emplovees, not incrcascd salcs per unit.

liy l rank \\. I)enn1 Prc'iJent. ISLrilJcr. StlLrar c

Industry must meet tough challenges

By Jerold Tuft President, Lock Division Schlage Lock Company

If ffes BEEN rather self-gratify- I ing to see my prediction last December of a strong, but slow growing construction market characterize this

year's activities. Despite the dashing of overly op- timistic expec-tations. I 985 has been a year of record construction activity continuing an upward spiral that has lasted three years.

Now, with three years of expansion and recovery behind us, it becomes crucial to determine just how vulnerable the outlook for 1986 really is. Despite lower interest rates and a rising GNP, the second half of 1985 has seen a slowing in the pace of housing starts and the appearance of saturated markets. The business climate is very different from last year with both the

consumer and corporate sector taking on increased debt, the continued high value of the dollar triggering record trade deficits, and the overhanging federal deficit discouraging any further declines in interest rates.

Next year wiII be characterized by a continuation ofthese "drags" on the economy. While stable interest rates over the past year have provided economic support, they are still too high to provide the much needed economic stimulus to trigger more

Story at a Glance

Overextended, unbalanced market...anemic growth prospects...1.7 million housing starts...more single family homes than multiples...renova. tion will be growth sector.

rapid economic growth. Thus, as we embark on 1986, we enter a marketplace overextended, unbalanced, and facing anemic growth prospects. In response, the building industry will need to adapt to growth prospects facing a mature construction market with changing technological needs.

Because of the stable inflation, interest rate picture and a slowing economy, we can expect a further decline in long term interest rates in the first half of 1986. As a result, housing starts will continue to be an important segment in the 1986 picture with annualized rates strongest in the first quarter gently sloping downward as the year draws to a close. Housing starts will repeat their 1.7 million level of 1985 but we will see a change in the ratio of single to multi-family units. Single family housing starts will increase 790 while multi-family starts will decline by l09o due to anticipated

(Please turn to page 33)

Healthier atmosphere for building products

By Ronald P. Hogan Senior Vice President. Distribution Div. Georgia-Pacifi c Corporation

OR THE second half of the '80s f we foresee a healthier atmosphere for planning building products manufacturing and distribution operations. Although no single construction segment will probably at- tain record heights, the combination of dl markets will pro- vide fertile grounds for expanding sales and profitability.

As a result of low and less cyclical interest rates, we believe housing starts will remain relatively strong with less fluctuation between the high and low points. Housing should average between 1.4 to 1.8 million starts between now and 1990. For 1986, housing starts should range between 1.6 to 1.7 million starts.

Continued strength in residential repair and alterations will provide the

cushion against sales and profit declines in the off years for housing and will be the stimulus for significantly better sales and profits in the strong building years.

Although in the near future business may be weaker in the commercial and industrial areas, these markets provide added value and make us less vulnerable to swings in housing. We will continue to develop these kinds of alternatives for generating higher return to stockholders.

Along with pursuing sales into all

Story at a Glance

Fertile market for sales and proflt. less flucluation in houslng...1.6 to 1.7 mllllon starls...plants must modemize.

areas of the construction market, modernization and expansion of plants are necessities for keeping price and quality competitive in today's aggressive marketplace. The recent opening of two Georgia-Pacific state-ofthe-art OSB mills in Grenada, Ms., and Skippers, Va., is ample testimony to the fact that we believe in this type of progress.

A possible negative impact on business that we foresee next year is the effect of pending tax legislation. However, because of our market diversity and the strong position we have with those customers serving the d-i-y market, we believe a tax revision affecting housing would have less impact on us than others in our industry.

By developing superior distribution into all markets, not just those reliant upon housing starts, and by qonstant modernization of our plants and facilities to keep up with the latest technology, we think the chances are excellent for generating sales and profit growth in the '80s.

1986-instant replay?

By Harry J. Horrocks II Acting Executive Vice Presidenl National Lumber and Buildins Material Dealers Association

I F nerruL lumber and building

I material dealers enjoyed the business activity in 1985, they're bound to enjoy 1986 as well.

Next year will mark the fourth consecutive recovery year for the housing and building supply industries. However, in some areas of the country, dealers have regarded 1985 as "one of those years" where getting by was top priority with an expectation of improved opportunities in 1986; next year will be more of the same. Those dealers located in areas of our country which are dependent on currently depressed industries such as agriculture, energy and certain manufacturing will have to rough it until improvements, out of the direct control of our industry, can occur. Other dealers who are currently doing well can expect continued good times.

Nationally, the industry is healthy. For most dealers, if 1986 is an instant replay of 1985, this will come as good news. Most Washington, D.C. economic gurus predict housing starts in 1986 to be in the 1.7 million range due primarily to stable mortgage rates and accommodative Federal Reserve policy. These analysts point to the Fed continuing to encourage economic growth at a 3 to 490 GNP annual rate and. since there are no indications of a major inflationary upswing, the Fed can afford to monetarize the Federal budget deficit.

Being close to Congress, both figuratively, as a registered lobbyist, and literally, since our offices are two blocks from the Capitol, I must comment that little faith should be placed with the ability of Congress to control mounting deficits. Despite the hoopla associated with the Federal debt ceiling increase legislation last fall, tax reform. and continued call for a balanced Federal budget, it will be politics as usual in this town.

The classic confrontation between liberals defending social programs and big government and conservatives defending the military and no tax increases leaves little room for compromise. As usual, it will be up to the

ingenuity and tenacity of the individual lumber and building material retailer to survive in spite of the presence of the United States government and all it entails.

1986 will be a year where consumer spending on home maintenance and improvement will continue to boom. The astonishing23t/o jump in the first

Story at a Glance

Fourth consecutive recovery year for housing and building supply industries...home main. lenance spending will boom ...8o/o increase in do-it-yourself spending.

quarter of 1985 for upkeep expenditures over the last quarter of I 984 is a clear indication that consumers are willing to dig deep into their pockets for home improvement projects. The numbers are truly staggering. Homebwners and property managers will spend approximately $83.1 billion for upkeep in 1985 according to recent economic statistics from the Commerce Department. Sixty percent of this figure consists of individual homeowners. Since income, employment. and economic statistics remain strong, there is no indication that homeowners will slow down in thgir home improvement spending. Do-ityourselfers represent a large percentage of the home upkeep business. Expect an increase in 1986 of about 890 over this year in do-it-yourself spending.

So, 1986looks like the classic mixed bag for our industry. Customer loyalty will be essential in this very competitive business environment; profit margins will continue to be too narrow for business overconfidence and business conditions will remain steady for the next 12-14 months. If business is good in your area, smooth sailing is ahead; if business is bad, keep bailing!

Recordpanel production

By William T. Robison President American Plywood Association

T HE AMERICAN Plywood AsI sociation (APA) expects 1986 to become the fourth consecutive record year for structural wood panel pro-

duction. Unfortunately, that good news comes tempered with the fact that industry capacity still exceeds market demand.

APA's overriding challenge in I 986 and throughout the decade, therefore, is to bridge the gap between capacity and demand by developing new markets and expanding existing ones.

To that end, APA's 1986 promotion plan reports several carefully targeted promotional programs in each of the panel industry's five major markets -residential, nonresi-

dential. distribution, industrial, and export. Together, they offer a net increase in 1986 demand of about 475 million sq. ft. (3/8" basis). The latest volume forecast is 22.6 billion for 1985 and 23 billion, with the promotional gains included, in 1986.

The forecast for overall improvement next year takes into account an unexpected 390 decline in housing starts. That represents a drop from APA's latest estimate of 1.75 million starts this year to 1.7 million in 1986.

Still, housing will remain far and away the panel industry's single largest and most important market, consuming approximately 40o/o of total production. And while a modest deiline is expected next year, substantial opportunities have been identified and targeted for promotional emphasis. These include floors and foundations, siding, and manufactured housing.

Healthy hardline sales ahead

By William P. Farrell Executive Director American Hardware Manufacturers Association

HE COMING year appears at this point to show promise of a continuation of the stable, healthy sales that characterized the U.S. hard-

lines manufacturing industry in 1985. These stable, healthy sales translated into a good business year for most.

While consumers did not go wild with their purchases in

1985, and are not expected to do so in 1986, there is a convergence of opinion amongst forecasters who view our industry that overall do-ityourself product sales at retail should show average annual growth of over 590 for at least the next several vears.

To support this view, forecasters point to a variety of key factors that

The distribution market, defined by APA as home repair and remodeling, do-it-yourself applications, and miscellaneous uses not elsewhere classified, is the panel industry's second largest outlet. It is projected next year to consume 6.2 billion sq. ft., or 270/o of total production.

Repair and remodeling, according to APA estimates, offers an additional 60 million sq. ft. of market oppor- tunity in 1986 and will be the key focus of next year's distribution market promotional efforts.

Several factors appear to favor a strong remodeling marketrelatively high mortgage interest rates, stringent

Story at a Glance

lndustry capacity will exceed demand for 4th year

housing expected to use 407o of total production, home repaar & remodeling, do.it. yourself, 27Vo .. . promotions will beef up these figures plus cxports...

will influence the market in comine years. As Bert C. McCammon, Jr.l director, Distribution Research Program, College of Business Administration, the University of Oklahoma, notes, these factors include: The resurgence of housing turnover; the explosive growth of heavy spending households; the continued drive towards affluence; the growing

Story at a Glance

D-i-y product sales of So/o ...housing turnover resurgence ...continued household growth, home centered lifestyle, afflu. ence...more import competi. tion, lower profit margins.

home loan qualification requirements, a sizable group of homeowners able to convert appreciated equity Into home lmprovement cash, a growing corp of do-it-yourselfers capable of larger and more costly repair and remodeling projects, and a substantial force of marketingminded professional remodelers.

The do-it-yourself market also appears to offer strong potential next year. It is an elastic market that responds to promotional efforts. APA intends to expand those efforts in close cooperation with the increasingly aggressive homecenter and retail network.

Other major 1986 market oppor- tunities identified by APA include nonresidential wood roof systems, materials handling, transportation and foreign markets.

International markets at present account for only 20/o of total structural wood panel demand. However, exports are expected to play a critical role in APA's long-term campaign to ameliorate the over-capacity problem that currently confronts the industry.

That campaign includes a 1990 demand goal for all structural wood panel markets of 27.5 billion sq. ft., of which next year's projected 23.1 billion sq. ft. represents 84q0 percent.

importance of home centered lifestyles, and the continuing commitment to the do-it-yourself ethic. Taken together, they lead to predictions of growth in real do-it-yourself sales ofover 50/o ayear through 1990.

This forecast for an expanding market at retail is, however, severely clouded for U.S. manufacturers due to marketplace factors that place downward pressure on profit margins. These factors include the continuing flowof lowcost imported hardline products into this country, primarily from the Far East, and the ever-increasing competition for the market share amongst the various players in the hardlines industry distribution channel. A major component of this competition within the channel, of course, is price, with the result that many manufacturers are experiencing increasing pressure from their customers for price reductions.

The downward pressure on price, and therefore profit margins, is further exacerbated by the continuing flood of low cost hardlines imports, particularly those which seek to gain market share through unfair, illegal and predatory competitive practices.

Manufacturers are responding aggressively to both situations. First and foremost, they are making a careful examination of their own operations with an eye towards achieving cost reductions wherever possible. Second, they are tailoring their programs and making them more flexible and responsive to the specific needs of their customers.

Where customers are looking for services and programs that will help them compete in their markets on a basis other than price, manufacturers are working closely with them to develop and refine their programs and services for maximum impact and productivity. Similarly, where price alone is the determining factor, manufacturers are working with customers to determine which services they need and which ones are not considered essential.

Through these continuing efforts to go to market "leaner and meaner," manufacturers are working to assure that the generally positive forecast for do-it-yourself product sales in the years ahead will translate directly into healthy margins and increasei profitability.

We will have to be better

By Pete Niebling Executive Vice President North American Wholesale Lumber Association

HENAWlAwholesaler. and the producers and the retail dealers . will have to work harder and be "better" in 1986 if they are looking for profitability.

The bottom line of most business forecasts for next year is a repeat of 1985 for the forest products industry. The marketplace will remain highly competitive. Sup- I .-- Supply will continue to outpace demand. We will have about the same level of residential housing activity. Other forest product markets will approximate 1985 in volume and demand.

At the manufacturing level, there will be those who will continue to strive to be the "lowest cost producer." At the retail level, there will be continued emphasis on buying right and tight inventory controls. We would suggest to our suppliers and customers that in addition to these concepts, they would be well served to considerwhat the wholesaler must do to be profitable in 1986. Wholesale lumber firms are going to have to work harder, sell more aggressively, implement operating cost containment wherever possible and develop long-term marketing strategies to be profitable in 1986.

Long-term marketing strategies cover a number of areas. The successful wholesaler must start with personnel. They need to continue to improve their motivation and their knowledge of markets and products. In addition, supplier-wholesaler relationships and wholesaler-customer relationships must be continually enhanced by performing the wholesale function better than ever. As firms strive to become "the most efficient wholesaler-distributor" they will also have to deal with operating costs and industry problems such as transportation and business insurance costs.

It won't be easy to be better in 1986. Time is the primary obstacle. Yet, there is no other answer to being profitable in a mature industry marketplace.

Over recent months, NAWLA has been advocating that mills and wholesalers network with each other at every opportunity. The changes going on at both levels of theindustry will re-

quire this increased interface. Distributors must know what the needs of the supplier are. In turn, the producer must be exposed to the changes in the marketplace. Our Regional and Sector meetings this past fall clearly indicate that many wholesalers and mill sales managers are implementing increased dialogue with one another.

For many months, NAWLA has suggested that the forest products

Story ata Glance

Wholesalers, producers, retailers have to work harder...supply will outpace demand...strategy and cost containment im. portant...importance of train. ing.

salesperson of the '80s must be more professional and more knowledgeable. Again, we are pleased to note that the two 1985 NAWLA Wood Marketing Seminars had full enrollment and that sales of the NAWLA In-House Training Video Tapes remain brisk. A great deal of time, effort and money is being spent by NAWLA wholesalers to improve their staff people.

Networking and upgrading the professionalism of staff are long-term strategies. They will pay off in 1986 but such gains will continue in future years as well.

For the short term there is cost containment. Success in this area next year will likely be in the area of electronic data processing, telephone expense and business insurance. There is a business crisis in company insurance and those firms who best contain these operating costs will fare the best in the coming months.

The industry today is composed of survivors from the slump of the early '80s. Yet, there seems to be no industry boom on the horizon and there are plenty of problems that lumbermen are trying to deal with. We would suggest that the survivors oftoday have to be the profitable survivors of tomorrow. It will demand more time, more commitment and more planning.

Long term looks good

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

A Nv FoRECAST of lumber I1n31[ets should consider long term as well as short term potentials and the effect on both of the influx of

Canadian lumber, now respon- sible for one third of U.S. lumber sales.

In the short term, Canadian shipments have caused a serious drop in prices of many U.S. species. Redwood clears and uppers have been less affected than other products, but the common grades of redwoodthe garden, deck and outdoor use lumberare in stiff price competition with other knotty species whose lowered prices allow them to be pressuretreated and marketed for the same end-uses.

Short term redwood projections must consider the price impact of the Canadian influx as well as the increase

of pressure-treating of other species and the marketing efforts being put behind these new products.

The redwood response will continue to stress the inherent natural qualities of the wood that make it such an obvious choice for outdoor projects, and will drive home the message that the buyer is assured of a dependable supply from long-time producers. It will be a competitive year, but redwood sales are expected to keep pace.

The redwood industry's development of new air-seasoned sidings from the common grades of lumber is another answer to increased competition in commons sales. These new products have been well received in the marketplace and will continue to strengthen redwood commons sales.

In the long term, all redwood markets have reason for optimism. Continued consumer affluence and emphasis on the pleasures of outdoor living are creating nationwide demand for decking lumber that can allow room for many species in the market, and gradual strengthening of the

Canadian dollar may slow the flow of that country's lumber into U.S. markets.

But the most promising prospect in the long term picture comes from a new and different developmentthe growing popularity of traditional housing styles. Traditional design creates increased demand for bevel siding, roof overhangs and soffits, wood detail and wood window and door framesall excellent markets for redwood.

The graying of America is a big factor in this traditional trend. Older Americans are the fastest growing segment of the U.S. population today, and they are comfortable with the traditional look in both houses

and commercial buildings. Many empty-nesters are buying townhouses, multi-units or other shared facilities, and all are heavy users of low-rise

Story at a Glance

Redwood faces competitive year wilh Canadian and pres. sure treated lumber..air.sea. soned sidings will strengthen sales...traditional country style home using wood is emerging trend.

commercial professional buildings. In all of these building types, they tend to prefer structures that have the same feel and style as the single unit homes they previously enjoyed.

There is a return to traditional values among younger buyers as well, and the new traditional, country or cottage-style homes have a romantic charm that makes them attractive to this vital market.

Americans of all ages are indicating clearly that they like to live with the beauty, familiarity and richness of natural wood. Redwood, with its inherent quality, high recognition, and proven performance, will profit from what appears to be emerging as a solid long term building trend.

D{-Y enters strategic era

By Lawrence R. Gavin President Ace Hardware Corporation

fl un TNDUSTRY today is charY acterized by excitement and incredible growth. Many companies, including Ace, are enjoying the best year

in their history. Reduced interest rates, increased housing starts, greater consumer spending and more d-i-yers are creating opportunities to grow and prosper.

Through 1990, the compound

annual growth rate will be 8.590 in the home improvement market. Factors going into these projections include the aging housing inventory which needs constant upgrading. There are an estimated 50 million homes which are over 20 years of age. Experts also expect an increase in home sales, and recent home buyers spend 4690 more on d-i-y projects than the average household.

Other statistics show that the d-i-y industry is entering a new strategic era characterized by a sustained high level of demand and above average earnings prospects. Incomes are up with the strengthening economy. Unemployment is down. The years ahead will present great opportunities for those who know their market and their customers.

Identifying the consumer and meeting his needs may well be the biggest challenge to all of us, as well as to our

industry associations. Studies show that consumers look for durability before price at the top of their priority list. They are also very conscious of energy conservation.

Today's d-i-yers are second generation "how-to" enthusiasts. They are upscale and willing to tackle more complex projects. They are also more willing to purchase quality, both in redoing previous construction as well as improving amenities. The problem of economy construction has increased demand for quality d-i-y merchandise. Meanwhile many of today's consumers are upgrading their homes with higher quality items to reflect their improved financial status.

Baby-boomers are the largest demographic segment of the market. These 70 million Americans, born between 1946 and 19il, are grown up now. By the end of the decade, they will account for more than half of all consumer purchases. Developing ways to reach this group is about to become

Story at a Glance

Home improvement to grow 8.5%...d-i-y will increas e 12.7 o/o ...baby boomer will make 507o of consumor putchases by 1990...challenge of new mar. kets wlll bring casualties.

imperative for retail success, and for many retailers, for survival.

By 1990, nearly every other household in America will be headed by a baby boomer. These are households with money to spend. Already 25s/o of this generation makes at least $35,m0 annually.

Our challenge is how to understand what motivates this special group of consumers. Unless we do, we will find it impossible to forecast the coming years from a consumer marketing perspective.

The baby boomers need to be stimulated, not only in merchandising content, but in store design, merchandise presentation and advertising. Retailers, wholesalers and manufacturers that follow the moving target as this group matures will be the great winners of the future.

Looking at the present, members of our industry are finding that it's no longer just business as usual. Unlike recent years where growth was automatic, there are only two ways for a company to generate more real growth: do more business with existing customers or take customers from the competition. Taking customers from the competition means that there are going to be some casualties.

Suppliers, wholesalers and retailers who join together to meet the challenges in the marketplace, will all come out on top. Those who are aggressive and capitalize on these combined strengths will have an outstanding future.

Modest increase for housing

ny William Baugh \l'illiam E. Baugh & Associates

NIY ATTEMPT to forecast the over-all housing market in the year ahead in this era of enormous government deficits and other factors becomes more and more complex and difficult to assess.

Whereas in the past deficits which require governmental borrowing caused money rates to increase, we have observed an inverse effect resulting in rate reductions, no doubt due to the amount of foreign investment in our economy.

New housing construction which accounts for the largest segment of wood products usage is and always will be interest rate sensitive. Adding to the confusion is our apparent intent to devalue the dollar.

The threat of a falling dollar and its impact on housing would have serious influence on the lumber market as foreign investment by way of disintermediation finds other havens of investment opportunity. This potential problem in conjunction with a federal budget deficit will have a detrimental

Story at a Glance

Ample funds for mortgage market with tighter credit...short cy. cles of price fluctuation...over. production ol wood products still a problem...devalued dollar could create export opportun. ities.

influence because of pressure being brought to bear on interest rates.

For the present, ample funds are available for the mortgage market and we are seeing more advertising in the media for lenders wanting to initiate housing loans. Not mentioned, however, isa tightening of credit standards.

Consumer spending has been the reason for a modest economic uptrend throughout 1985. Consumer spending is outpacing income gains, driving savings rates of consumers down to new lows. The overspending caused savings as a percentage of after tax income to drop in September to the lowest point (1.990) since the government began keeping records in 1959.

With the above factors in mind, it is anticipated 1986 will only show a modest increase in housing starts over 1985 which will be in the 1,650,000 range. This can't be rated too bad when all factors are considered.

Focusing on wood products indicates the primary problem will still be in the area of over production, but, if dollar devaluation occurs, export opportunities for Western producers will increase, thereby slightly relieving over production and price pressure. The possibility of protectionist legislation on lumber imports will continue to be debated but it appears doubtful anything meaningful to affect the overall market will occur.

Continuation of short cycles of price increase and decline should continue to be with us, causing distributors to monitor and control inventories so as to minimize risk due to declining value of inventory.

The opportunities to overcome modest market growth involve diversifyrng product lines, redefining markets, cost reduction, additional personnel and capital productivity, and increased attention to the core activity of anybusiness which is marketing and is synonymous with customer awareness.

Pressure treated wood's on a roll

I N o CLASSIC cause and efr-ect

I situation, sales of pressure treated wood are increasing steadily as retailers and consumers become more

knowledgeable about the product and offer a wider selection of pressure treated wood in stock and ready for delivery.

Retail sales are expected to play an increasingly important role in uut the total growth of the pressure treated wood industry, which is preparing on a national level for approximately an l89o increase in sales during 1986.

Based upon a projected production of 2.6 billion board feet of pressure treated wood whenl985 totals are tab-

By Tom Petenon Promotion Committee Chairman Westem Wood Preservers Institute

Story at a Glance

18o/o increase in pressure treated wood sales. growth of 15-No/o alone in the west acceptance of Permanent Wood Foundation increasing ... more treated lumber used in outside living areas west will lead country in sales.

ulated, the industry nationwide is gearing up for sales of 3. I billion board feet in the coming year.

This market strength reflects the continuing acceptance of pressure treated wood. In 1984, production was 2.2 billion board feet.

In 1986, growth in the l59o to20Vo range is reasonable to expect in the West. In addition to the growing retail sales of pressure treated wood to general consumers, the construction market also holds strong promise for pressure treaters. Both the Permanent Wood Foundation and general uses of fire-retardant treated lumber and plywood are expected to spearhead this sales effort.

One reason for this optimism is acceptance of the Permanent Wood Foundation, which is built entirely with pressue treated wood. This system is being promoted extensively

through a joint industry effort.

Alaska is a perfect example of the growing interest in the Permanent Wood Foundation. A majority of residential dwellings in Alaska are now being built on Permanent Wood Foundations.

Another factor in the expanded use of pressure treated wood is the increased creativity being shown by builders in the highly competitive homebuilding market. Builders are demonstrating more imagination in designing livable areas outside the home. Patios, decks, gazebos and other lifestyle areas are blending the inside with the outside to increase the total usable living area.

The added value of these amenities is creating a greater awareness on the part of buyers about performance of pressure treated wood in general. This, in turn, carries over to increased retail sales.

Retailers did more promotion in support of pressure treated wood sales in 1985 than ever before. And when prospective customers came in, they were greeted by sales personnel more knowledgeable about treated wood than in the past.

Most of the credit goes to the treaters' field sales force along with industry groups such as Western Wood Products Association and American Plywood Association. They have been aggressively working with the retailers, conducting seminars on how to sell pressure treated wood: where it can be used and how to use it. An important part of this industry effort is to educate salespeople.

This effort is paying off in additional sales throughout the year. In the past, most retailers accepted the contention that sales stopped from November through February.

Now, through aggressive promotion, retailers are finding the market for pressure treated wood is a yeararound source of sales.

One particular area of strong growth is in the sales of material treated for ground contact in both 2x4 through 2xl2 lumber and 4x4 through 4xl2 timbers. In addition to sales of decking and fencing, sales of material treated for ground contact such as bulkheads and retaining walls are very strong and expected to continue to increase as retail promotions expand in 1986.

We expect the Western U.S. to outpace the rest of the country in the increased sales and use of pressure treated wood. The member companies of the Western Wood Preservers Institute are prepared for 1986 with an on-going program of aggr€ssive marketing based upon increased product awareness and user information.

'86 outlook uncertain

By Dr. Randall J. Pozdena Senior Economist Federal Reserve Bank of San Francisco

HE ECONOMY in 1985 did not grow at the rate anticipated by administration economists, but was displaying continued moderate strength at the end of the third quarter. What then are the prospects for the economyin 1986?

As usual, the major sources of uncertainty in the outlook for 1986 are government policies, in parti- cular, budget policy and monetary policy. Many economists feel that the current, enlarged federal budget deficit is exaggerating the strength of the U.S. dollar in foreign exchange markets and, thereby, responsible for the trade imbalance and the poor outlook for export-oriented or import-competing industries. Failure to take steps to resolve the federal budget deficit, therefore, will result in continued weakness of affected sectors (including the wood and pulp products industries) and a continued reorientation of our economy toward production of service activities.

Addressing the budget deficit problem by a tax increase is less desirable than an expenditure-cutting approach because the distortions caused by higher rates oftaxation probably would result in a generally weaker economy overall. It is important to note that it is not necessary to balance the budget immediately to effect changes in the exchange rate and the trade balance. Passage of legislation that caused the marketplace to be confident that the budget deficit would be resolved would result in immediate changes in foreign exchange markets which, like debt markets, are highly dependent upon market expectations.

Monetary policy in the last year and a half or so has been stimulative, with some basic measures of the monev supply growing at historically high rates. Conventional monetarist thinking would argue for an increase in the rate of inflation and nominal interest rates within the next ye.u or so. Some economists argue that the extensive deregulation that has occurred in financial markets is such that the economy can't tolerate a high rate of growth in the basic money supply without such an inflationary stimulus. Nevertheless,

if such a stimulus continues into 1986, the probability of a return to higher rates of inflation and higher interest rates increases.

It is this author's opinion that the federal budget imbalance is more likely to be addressed by increasing taxation than by expenditure cuts, but that the efforts to address the deficit will not be aggressive. As a result, the dol-

Story at a Glance

Government policies make 1986 uncertain . increased proba. bility of higher inflation and interest rates.. . modest bene. fits from any proposed tax re. lorm . . . housing industry vul. nerable to piecemeal changes.

lar will remain strong in real (that is, price-adjusted) terms. Thus, importcompetitive and export-oriented industries will continue to face weakened demand for their products.

If accompanied by a monetary pollcy that proves overly stimulative, the result would be an ultimately weakening economy, rising nominal interest rates and, hence, weakened demand in the home-building, automobile manufacturing, and other interest-sensitive sectors of the economy.

A final wild card in the process is the proposal to reform the structure ofthe tax system. Although passage of any of the major tax reform proposals ultimately would have beneficial effects on economic activity because of the lower marginal tax rates generally embodied in these proposals, it is this author's view that the proposals would have only modest beneficial effects, but would cause significant short-term (Please turn to page 34)

The opinions expressed are those of the author and do not necessarily reflect the views of the Federal Reserve Bank of fun Froncisco. -ed.

Cost control increasingly vital

By John N. Anderson Vice Chairman and CEO Palmer G. Lewis Co., Inc. Auburn. Wa.

indication that lower interest rates to date have caused any significant increase in new housing construction on a prolonged basis. Rates have passed through the various "magic numbers," which were to have started the housing boom. Little has happened. There is some thought that even lower rates in the future may not cause any major change in new housing starts. This could be partially because of personal credit availability limits of many otherwise eligible new house customers due to disinflation, or even defla-

Story at a Glance

Lower interest rates will have little effect upon housing... markets will be stable, no boom ahead...more attention will have to be paid to cost control...innovation essenlial for success.

tion in formerly rising personal assets.

If you believe the scenario stated above, it is obvious that all segments of the business-manufacturers, wholesale distributors and dealers of all types and sizes will be fighting for a larger share of a somewhat stable market.

In order to remain competitive and operate at a profit, much of management's attention is going to have to be placed on cost of operation, whether manufacturer, distributor or dealer. High cost operations will have to be reevaluated. Services to customers will have to be re-evaluated to determine whether the customer is willing to pay for traditional services or whether he will require less to achieve the lower price.

This means innovative marketing will be required and adjustments made along the way for those who are to be successful. For those companies who are successful in fine tuning their costs and marketing programs, the rewards, in case of a business expansion, will be significant indeed.

These challenging times often bring out the best in companies and their management. It will be interesting to look back at the end of 1986 and see how things have gone.

Strong economy in 1986

By Dr. Alison Lynn Reaser Vice president and senior economist First Interstate Bank

HE HOUSING and home center market should have quite a good year in 1986, especially in the first half of the year. A strong econoffiy, moderate inflation, but a graduallyupward trend in interest rates will be key features of the landscape.

We expect economic policy to be stimulative in 1986. The federal deficit is likely to be close to $200 billion, as government spending grows substantially. Monetary policy is now focusing on promoting growth in the U.S.economy. Inflation is not presently a concern; problems in manufacturing, rising protectionism, and credit problems in this country and abroad do trouble both

the Administration and the Federal Reserve. Monetary growth will, therefore, continue to be rapid in 1986.

Lack of general public interest and strong pressures by individual groups have probably scuttled chances of any major tax reform in 1986. A bill con-

Story at a Glance

Stimulative economic policy... business rebound...inflation higher, but moderate...interest rates to trend upward...impact on building and home center industry...1.68 million housing starts.

taining comparatively small changes in the tax code might be approved next year.

The U.S. economy will be entering its fourth year of recovery in 1986. After the pause of the past year, we look for a substantial rebound, with real GNP up 7.7s/o from the end of 1985 to year+nd 1986. The thrust of the past and next year's monetarY growth, a swing towards some rebuilding of inventories, and a levelingoff in net exports should support. this growth. The result will be rising employment and income. An expected drop in the unemployment rate below 6.590 by the second half of the year should also bolster consumer confidence.

We believe the rapid growth of the money supply this year (expected increase of about I I 9o) together with the

Orchard Supply Hardwore, with new stores in Redwood City and Millbrae, Ca., has plans for store {22 in Watsonville. Ca. National Lumber and Supply Inc. opened a San Bernardino, Ca., store last month

HomeClub Inc. and Zayre Corp. have signed a merger agreement (see p. M for details); the newest HomeClub warehouse store opened in Cardena, Ca., Nov. 23 Home Depot is planning a store in a Pico Rivera, Ca., shopping center . .

Uncle Richord's True Value Hardware S/ore is new in the Farmington Mall in Aloha, Or. . Pay 'N Pak is doubling the size of its Wenatchee, Wa., store in a $1.5 million expansion and remodeling.

Ganahl Lumber is remodeling and adding space for its contractor sales dept. in Carden Grove, Ca. . . . Imperial Stores plans a new hardware store in El Centro, Ca. . . Home Depot has opened its second store in Tucson. Az.

Groce Home Centers West will rdlocate- from Brea, Ca., to offices in nearby Diamond Bar, Ca., in early Jan. . . Zimmerman Family Portnerships of California has acquired 5090 of Pay'n Sove, Seattle, Wa., from the Trump Graup of New York

Three C's Lumber Co., Grants Pass, 0r., is closing after 65 years

. Ronstsdtts' Hqrdware Mochinery, a 97 year old Tucson, Az., business started by the grandfather of singer Linda Ronstadt and the last of a chain of eight stores, has closed.

B re me r's Hirdware St o re, Y uba City, Ca., is celebrating its Z5th birthday Dole Hardware, Fremont, Ca., completed a new parking lot for its recent 3fth anniversary celebration.

Innovative Interiors and Envirotherm will be tenants in the Marin Home Center scheduled to open early next month in San Rafael, Ca. Beqr Creek Lumber is moving to a new location near the Inter-City Airport in Okanogan,Wa....

Top company officials and private investors have bid $1.3 billion to acquire National Gypsum Co. in one of the largest leveraged buy-outs in history; the move must be ok'd by National Cypsum's board and its shareholders . . . the firm is one of the biggest gypsum producers in the country.

The U.,S. Supreme Court has temporarily blo'cked a buy-out of Pacific Lumber Co. by Maxxam Croup, a New York investment firm. minority stockholders were given a chance to plead their case to prevent the $870 million takeover of the venerable San Francisco redwood firm as this issue went to press. . .

Jefferson Smurfit Group Ltd., Ireland, has agreed to limit its Southwest Forest Indusfties Inc., stake to the current 9.390 level for at least 10 years with an option for the Phoenix, Az., co. to buy back the shares next Aug. . .

Potlqtch Corp., San Francisco, Ca., which rejected a $693 million takeover offer from the Belzberg family of Canada, has been placed an Stondard & Poar's creditwatch list...

Weyerhaeuser Co. shareholders have approved an anti-takeover bylaw amendment LouisianaPacific Corp.'s board of directors has authorized buying back of up to 3,000,000 shares of its common stock . .

Mqnvil[e Corp., Denver, Co., has reshuffled divisions to form two new operating groups:

specialty products and glass fiber to replace the building materials and international operating groups; the forest products group remains intact the firm says it intends to emerge from Chapter 1l bankruptcy in '86

Crown Zellerbach. San Francisco. Ca.. has authorized redemption of about 2.5 million shares and swapping of about I million shares effective next month. .

Mauk-Seattle Lumber Co., Seattle, Wa., has closed after 87 years Riley Creek Lumber Co., Laclede, Id., has filed for Chapter l1 bankruptcy protection .

The Golden State Millwork Div. of J. E. Higgins Lumber Co. has been reacquired by its founderpresident Lew MacDonald for an unannounced sum; he is now operating it as a separate co. under its original name Golden Stste Moulding Co. Ply*Gem Industries Inc., New York, is acquiring The Allied Plywood Corp., Charlestown, Ma.

Amweld Building Products, Niles, Oh., has opened a regional distribution center in the City of Industry, Ca. Accent Pacific Frames Inc., Thomss Csnby Co. Inc. and Accent Molding have merged and will move into a new 44,000 sq. ft. manufacturing facility in Kirkland, Wa., next month

Crane Mills is adding a new computerized optimising edger and double track dry kiln in a $400,000 plant modernization of its Paskenta, Ca., mill . Specialty Forest Products, Chandler, Az., is adding 5 acres for a remanufacturing operation to its 7 acre distributionfacility...

Housing stsrts bounced up l0.8Vo in Oct. (latest fig.) spurred by single farnily homes starts of 1,123,000 units multis were up only 2.9s/o at an annual rate 0f 637,000 units . the seasonally adjusted annual total was 1,760,000 for both . although permits were down 7.Tslo at 1,675,000 units, some analysts were confident that there will be another 3 to 4 months of growth in starts and permits

--'';'; e r:i l:< llll E S

L|!l Li'.[U,r\r d-,rrL!L] Lul

A four-day investment in profitability for Building Supply Dealers through innovation

DESIGNED TO MEET YOUR NEEDS AND INTERESTS. ll you're a buihing

trade show specifically de

serve your needs as a retailer of building materials and other home improvement products. More than 1,300 leading manufacturers will be displaying thousands of the hottest new products for both consumers and contractors. And when it comes to doit-yourself products, the National Home Center Show is the world's largest exposition of products for the DIY market.

AN OUTSTANDING OPPORTUNITY FOR BUILDING SUPPLY DEAL. ERS. Your business is undergoing rapid changes, particularly in the area of new and increased competition. The National Home Center

Free Pre-Registration Instructions

Show offers building supply dealers like yourself the opportunity to gain tremendous benefits by taking advantage of all that the Show has to offer. Here's

make your business more profitable; to meet and exchange information with your fellow dealers from around the country. The National Home Center Show is a fourday investment in your profitability, and it's the ONE annual industry event you cant afford to miss.

SAVE $1O.OO BY PRE.REGISTERING TODAY FREE OF CHARGE. Fill out the pre-registration form below and return it to us by February 7, '1986. Yor-fll save $10.00 by avoiding the arShow registration fee. Plus, yotill receive a FREE embossed Show badge sentto you by return mail. Avoid the lines this March by sending in your form TODAY.

1. Must b€ rec€ived in lhe show otlic€ by February 7, 1986. Contirmation ot pre-regislration and hotel res€rvation torms wil be mailed within lhroe weeks. Free badgps will b€ mailed atter January 3, 1986.

2. Late mail r€islrations wil not be processed. Register again at Show. (At-Show regislration l€€ $10.00.)

3. REGISTRATION COMPUTERIZED. ALL INFORMATION MUST BE FILLED IN.

4. NO ONE UNDER 16 YEARS OLD ADMITTED,

IMPORTANT: Pl€as€ leav€ soace b€twsen lirst name or inilials and last name.

CEn|TER

tililr{#ilililililililililililr sl{olllf

ilarch 912 1986 Chlcago, lilinois

IMPORTANT: In otder to process your registration, your company's business activity must be indicated bebw: (l)

P.O. BOX 20174 o 7050 SAN JOAQUIN STREET SACRAM ENTO, CALI FORN IA 95820

PHONE (800) 521-1155 o (916) 452-5671

Call Jim, Stan or Lloyd

GALENDAR

DECEMBER

Rogue Valley Hoo-Hoo ClubDec. 17, Christmas shopping tour, Medford, Or.

Umpqua Valley Hoo-Hoo-Ette ClubDec. 17, Christmas party, 6 p.m., Roseburg, Or.

JANUARY

Dub's Ltd.Jan. 17, golf, Marin Golf & Country Club, Danville. Ca.

Lumber Merchants Association of Northern CaliforniaJan. 17-19, management seminar, Asilomar, Ca.

National Association of Home BuildersJan. 17-20. convention & exposition, Dallas Convention Center, Dallas, Tx.

Household Appliance Trade ShowJan. 3l-Feb. 3, Paris, France.

FEBRUARY

National Wood Window & Door AssociationFeb. 1-5. annual meeting, Marriott Hotel, Marco Island, Fl.

California Hardware Co.Feb. 2, market, San Francisco Concourse, San Francisco, Ca., and Pomona Fairgrounds, Pomona, Ca.

Birmingham Spring FairFeb. 2{, housewares, Birmingham, England.

Fair for Home AppliancesFeb. ,T7. Cologne, West Germany.

Constructa '86 HannoverFeb. 12-19, international building trade exhibition, Hannover Fairgrounds, Hannover, West Germany.

Home C.enter Loss Prevention ConferenceFeb. 17-20, Fort Worth. Tx.

Oregon Logging ConferenceFeb. 20-22, Eugene Hilton, Eugene. Or.

American Hardware Manufacturers AssociationFeb. 25-27. London Trade Mission, U.S. Embassy, London, England.

MARCH

Wood Heating AllianceMarch 14, wood energy trade show & seminars, Reno,/Sparks Convention Center, Reno, Nv.

Frankfurt International FairMarch 1-5, housewares, Frankfurt, West Germany.

American Hardware Manufacturers AssociationMarch 2-5. international hardware trade fair, Cologne, West Germany.

Forest Industries Clinic & Machinery ShowMarch 5-7, Memorial Coliseum, Portland, Or.

Mountain States Lumber and BuildingMaterial Dealen AssociationMarch 5-8, lumber dealers ski retreat weekend, Lake Dillon. Co.

National Home Center Show/Home Improvement Congress & ExpositionMarch 9-12, McCormick Place, Chicago, Il.

Western Wood Products AssociationMarch 1l-14, spring meeting, Westin St. Francis, San Francisco, Ca.

National Lumber & Building Material lkalers AssociationMarch 161E, Conference with Congress, Hyatt Regency Hotel, Washington, D.C.

American Concrcte InstituteMarch lfi2l, Hyatt RegencyEmbarcadero, San Francisco, Ca.

Canada/Wood 'E6March 2l-23, exposition, Palais des Congres, Montreal, Quebec, Canada.

Western Decorating Products ShowMarch 22-23, Civic Auditorium. San Francisco. Ca.

Douglas Fir - Hem Fir Redwood-Cedar Spruce

DIRECT MILL SHIPMENTS DISTRIBUTION YARD IN SACRAMENTO, CA

Desert Redwood' is no mirage

Youknowthe problern wood looks right, feels right, {

Some redwood lurnberis too geerl Someistoodry.

Wel[ newDesertRedwood from lnuisiarn-Pacific is just right. It sohes the problem once and for alt

New Louisiana-Pacific Desert Redwood is consbuction common or construction heart lumber that is hln dried

works riglrl Even better, it's priced right And another beautif,rl thing about L-P Desert Redwood is its weight Unlike greenredwood that weighs up to 2800 pounds per thousand board feef Desert Redwood weighs about 1600 pounds per thousand.

Youpayless freight to getit. You deliver more per buckload Your retail customer can load it withease.

Only after it's dried is it trimmed, planed and graded. Dimensions are bue. Slrinkage is controlled. Grading is right on Louisiaru-Pacific Desert Red-

Louisiarn-Pacific Desert Redwood construction corrmon and consbrrctionheart are available in 2"x4" or2"x6" dimensions in lengths to 20 feet

Nobody else makes it Just Louisiana-Pacific. Dscover the beauty of l"ouisiana-Pacific Desert Redwoodtoday.

A personal guarantee.

When you buy anAmericanrnade louisiana-Pacific product like Desert Redwood, we e)pect you to expect the besl Not just quality. But a competitive price. A satisfuctory business relationship. And service that leaves vou completely satisfied

The 12,000 men and women of Louisiarn-Pacific joinme in grvngyou ourpersonal guarantee.

Wewillperforne

Ifwedon't, letus know, please.

Sincerely,

HOME GENTER MERGHANTI

Bill Fishman & Affiliates

11650 lberia Place San Diego, Ca.92128

I DON'T KNOW whether to title this I column "What's Convenience Worth?" or "There are some things you just don't talk about," or "Do it for Murray."

In the Store Wars today many retailers have take a position as "convenience stores." It is their answer to the warehouse outlet competition. I, too, believe that retailers in the lumber and building material industry can survive the onslaught of the warehouse chains with a market position as a convenient, local, service store. I also believe that a retailer has the right to be slightly higher than more distant competition because the store is more conveniently located, but please . Don't Tell That To Your Customers!

When you are challenged by a customer

who quotes you the warehouse store price your best bet is to acknowledge the difference and meet the price. Or explain how some retailers can offer short term specials on a few items to attract customers, but that your store maintains a competitive position on the material list for the overall project, But never, never advise a customer he is paying more because you're moreconvenient. He may feel that he is . but he does not want you to confirm it.

When you tell a customer he's paying you more money than elsewhere, he feels you are branding him an easy mark every time he shops in your store . , so he won't.

Some of my basic training in human relations came during my upbringing in the New York City area. As a young new-home owner, I soon learned that a fast way to lose the esteem of friends and neighbors was to show an inability to "buy right." Shopping for price became a necessity, not because of

the effect on the household budget, but rather because of the ridicule by Murray, the nextdoor neighbor. He was the guy who, when escorted to the newly-paneled family room, would ask, "What did you pay for the paneling?" and when you answered $11.99 a sheet, he'd respond, "Jerk, I could have gotten it for you for $9.99 at 2 Guys."

If you have to charge more for your merchandise you owe your customer some better explanation than"convenience." Give him something with which to face Murray.

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

IN MEMORIUM

A. D. Bell, Jr. 1909-1985

It is our sad duty to report the death of A.D. "Al" Bell, Jr., a longtime industry member, a former co-owner of The Merchant Magazine and, most important of all, a friend.

A formal obituary notice appears on page 82 of this issue. It recounts the details of his lifetime of achievements and contributions.

We would like here to reflect briefly on the remarkable man that was Al Bell. He spent freely of his time and energy in the true spirit of the volunteer. If something needed to be done, he did what he could to help. His modesty and lack of ego meant his contributions were sometimes unrecognized. But he didn't care, because he was that kind of man.

In business he was honest and equitable in his dealings. During the eleven years he and I were business partners he was unfailingly fair, generous and considerate. He couldn't have been kinder to me had I been his son.

Knowing Al was a joy. He was a lot of fun, a master storyteller, a connoisseur of congeniality and the kind of man other men are proud to call their friend. He always had a smile on his face and a good word, even during those times when I knew that the fates had been unkind to him. But then Al always seemed to be thinking of the other person. ((It doesn't cost any more to be nice," he would say. It was typical of Al Bell. We miss him already.

David Cutler Editor/Publisher

Green Douglas Fir rough timbers. surfaced. saw sized. band sawn or selected to your specs. For quality and service rely on us.

CCORDING to a recent report made public by the National Association of Home Builders (NAHB), greater emphasis will continue to be placed on the remodeling market as compared to new home construction. The reason is simply the builder's desire for more protection from the ravages of the business cycle.

In the 1990s, as demand for new homes falls, it is possible that remodeling will parallel home building as the most important operation among builders. The changing compledty of the housing industry is well documented. Between 1976 and 1983, the percentage of NAHB builders listing the building of houses for sale to the general public as their principal operation declined from 5990 to 410/0. During the same period, builders mainly involved in remodeling experienced a fourfold increase.

The IRS mileage deduction for business use of cars has been raised to 210 per mile, retroactive to January I, 1985. It applies to the hrst 15,000 miles each year. Thereafter it is lla. Deduction for charity is l2a, for medical or moving, 90.

Do you have a formal check cashing policy for your retail establishment? The passing of fraudulent checks has reached epidemic proportions and small retail businesses incur losses that are 35 times greater than large retailers because there is often no formal policy about accepting checks, or employees have not been properly trained to spot checks that may be phony. Con artists know this and flood small retailers with bad checks. Here are some suggestions:

(1) Require that all checks be examined

for possible alteration. Erasures, blots, changes in ink color, changes in the thickness of the writing and poor spacing of words or numbers suggest that the check has been altered.

(2) Examine the date. Post-dated checks could mean the issuer either has no funds in the account or is attempting to pass a bad check.

(3) Check the magnetic ink Character Recognition Code on the check with the customer's bank account number. A code that does not agree means that the check is forged and the forger failed to realize that the two must agree.

(4) Watch for double endorsements that don't agree with the name shown on the check. Either one could indicate a forgery or a stolen check.

(5) Identify the customer either by sight or byasking for double identification. Both identifications should bear the signature of the individual tendering the check and at least one should have a picture as well, Driver's licenses, national credit cards, and govemment or military I.D, cards are considered reliable identification. Social Security cards, temporary driving permits, voter registration stubs and club membership cards are unacceptable.

Your newspaper may be a member of the Newspaper Advertising Co-op Network. If so, there is a co-op specialist at the paper to help you get co-op dollars available to you. In "Newspapers Make Co-op Easy to Use," the Newspaper Advertising Bureau makes the following suggestions:

(1) Assume that co-op ad dollars edst on every product you buy.

(2) Do not buy merchandise without making a deal sheet out for every vendor and keep a simple running total of your accruals.

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

(4) Keep an alphabetical file of all coop programs available to your store.

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

(6) Set a system to use co-op dollars in tandem with price point reduction.

(7) Don't be fooled into thinking that because you've only made small purchases, not much co-op will accumulate.

(8) Ask for co-op funds at seasonal markets, trade shows and regional buying shows,

Ihowing the amount of cash that is provided from operations is extremely important for a small business since it gives an insight into the financing requirements that may have to be met through additional investments by the owners or borrowing. Unfortunately cash flow from operations is an elusive figure because income statements are traditionally prepared on an accrual basis. However, there is a relatively simple approach for converting them to a cash basis in order to reveal the cash flow from operations. Here are the steps in the process:

(1) Start with net income.

(2) Add: depreciation and amortization expenses; deferred tax charges; losses on sales of property, plant and equipment.

(3) Deduct: gains on sales of property, plant and equipmenq amortization of bond premiums; equity in the earnings of subsidiary companies, deferred tax credits.

(Please turn to page 27)

THE SOUTHLAND

WAYNE GARDNER executive vice president

THE 35TH annual management con-

ference of LASC is now history. But what history it made. Attendance records were set. Best attendance in five years. The program wurs a great success from the opening gavel until the closing moments.

Herb Winward of Weyerhaeuser Co. opened and Vic Yacullo closed. Tomorrow's trees to dealing with tomorrow's labor problems.

Officerselected: E. L. "Al"Newkirk for president; Phil Butterfield, lst vice president; Richard Hawthorne, 2nd vice president; Maftyn Temple, treasurer, and Ceorge Swartz of Mar Vista Lumber Co. joined the officers as secretary.

Ed Fountain Jr. was honored as the outgoing president and was commended for the finejob he had done. James Frodsham outlined plans for the future developed by his future planning committee.

The Lumberman of the Year award was given to Wayne Mullin, chairman of the board. Mullin Lumber Co. Mullin has been

Sawmills

active in the lumber business in Los Angeles since l92l starting with Wood Head Lumber. In 1923 he opened the doors of Mullin Lumber Co. on Slauson Ave. He continued to expand the business enterprise until it became one of the largest companies in Los Angeles.

Mullin served as president of LASC for two years, whereas most only serve for one year. Some years ago he was made president emeritus. The Lumberman of the Year award has become amost prestigious honorand it was conferred upon one of the patriarchs of the lumber industry of Southern California.

1985 is almost over, so meeting activity for LASC is dropping down. Second Growth met in San Diego Dec. 3 and in Los Angeles Dec. 4 to elect their 1986 directors. The San Diego meeting was at Mulvaney's Rib Cage in the Kearny Mesa area. And the Los Angeles meeting at the City of Industry Hyatt House.

In 1986 LASC plans to have a series of area meetings as well as some educational seminars and the usual outstanding quar-

terly general membership meetings. The one for February is planned for San Diego and the May meeting will be in Catalina.

Now is a good time to reassess your position with the association. There are those who say, "The association doesn't do me any good." Yet their competitor just down the street says, "Boy, the association really helps me." What's the difference? The competitor participates in the meeting. He calls the association with questions. He gives a little of his time and gets a lot in return. The one who says, "They don't do anl.thing for me" usually isn't at any of the meetings. He doesn't call. And he doesn't give any of his time.

LASC is active with building officials, with the Los Angeles Area Chamber of Commerce Code Committee, is lobbying in Sacramento, is part of NLBMDA in Washington for national lobbying, has great insurance programs tailored for the lumber industry and has a well oriented staff to assist you in many of the problems you .rs a lumber and building material distributor might be having. We know some of the problems and are working to correct them. Others we don't know about, but with your telephone call, we could. We are here to help you, to give back to you a lot, but we can't unless you give us a little, a little of your time to share some of your concern with us. Call (213) 483-6450 the next time that question arises that seems to be perplexing you.

lNC.

Specialists in redwood, cedar, pine and Douglas fir products

Redwood and Douglas fir timbers most any size up to 32 teet

Dry air-dried or green patterns

Long length redwood and fir dimension

For your inquiries call: Rick Rosa, Dave Snodgrass, LowellWall

E.J. JOHNSON executive vice president

ALTHOUCH the state's economy r las been generally strong in recent periods, some local business forecasters are projecting a continuing slow down to the record pace it has enjoyed in recent times. Their projections are based upon a weakening, since last March, in the goods-producing sector which will result in much smaller increases in personal income next year. They report that approximately 18,000 jobs have been lost in that sector in that time.

Retail sales growth into next year is expected to be minimal and the number of housing units authorized will also probably be on a decline. Construction contract awards have only increased 390 during the past l2 months with residential building showing a3.SVo drop from previous levels. Considering that the multi-family and office markets are presently overbuilt, continued construction activity in these areas cannot be expected to improve. Recent data indi-

cates that multi-family dwelling vacancies in Maricopa County are at a l2Vo level and are at a 13.590 level in Pima County. Office vacancies are also high at about 2090 in both counties, which is well above the national average.

Some of this gloom is negated by excellent promise of growth in some areas of the massive high-tech industry which does a better job of adding to personal income. lncreased employment, however, in high-tech businesses is not always reliable due to the volatile nature of those markets.

Economists, regardless of their training or considered judgements, readily point out that their opinions arejust that! There seems to be some agreement in Arizona, however, that things aren't that bad, influx migration continues, inflation is under control. interest rates and more particularly mortgage rates are not onerous and consumer spending keeps the money flowing. All this adds up to a state economy that will continue to out perform most of the country and one which most other states would gladly

trade for. So when thebuzz word ,,recession" starts to surface among some former colleagues, this shirt tail prognosticator thinks that the brilliant Arizona sun may have had a spoiling influence on those who have perhaps been here too long!

NORTHWEST (Continued

from page 25)

(4) Add: decreases in accounts receivable, inventories, prepaid expenses, marketable securities and other current assets.

(5) Add: increases in accounts payable, accrued expenses, income taxes payable and other current liabilities.

(6) Deduct: increases in accounts receivable, inventories, prepaid expenses, marketable securities and other current assets.

(7) Deduct: decreases in accounts payable, accrued expenses, income taxes payable and other current liabilities.

The result is an income statement prepared on a cash basis that reveals the cash flow from operation. When this is combined with other sources and uses of cash during the accounting period, it should equal the change in your cash balance, and more importantly, provide you with a detailed analysis of how your cash was derived and how it was utilized.

WesternSoftwoods, dings & Millwork Agriorltural Wood

ProduGts, PlSnuood, Particleboard

Quick Quotes for 1986

A random sampling of ideas and opinions

"The consumer is overextended, but I still expect a pretty good Christmas. But, the fiscal first quarter may be very dull."

Walter Loeb

Analyst

Morgan Stanley & Co.

New York, N.Y.

"The boom in commercial construction will finally flatten out-but not stop-next year."

Real Estate Research

Chicago, Il.

"We're eternal optimists. But it will be a cliffhanger until late December."

LIIMBER: Robert Glatt, division mgr.; Jim Haas, Bill Hanrahan

MILLWORK: Richard H. Mills

We are also pleased to be a West Coast area distributor for CF&I steel products as well.

BERcER & @MPANY aw (a Conagra company) tAgfa IS AN INTERNAfIONAL AC @MMODITIES TRADING ORGANIZATION WITH OFFICES IN: San Francisco, Ca. (headquarters); Chicago, ll.; Colfax, Wa.; Fargo, N.D.; Filer, Id.; Grand Cayman, British West Indies; Santiago, Chile: London, England; Geneva, Switzerland; Nicosia, Cyprus; Buenos Aires, Argentina; Moose Jaw, Canada; and Taipei, T[iwan.

Robert Brewer

Vice

President, Finance

K mart Corp.

Troy, Mi.

"U.S. companies plan a l9o cut in capital spending next year. The stingier capital spending budgets are a sign that companies are thinking tough times in 1986."

McGraw Hill Economics

McGraw Hill Inc.

New York. N.Y.

"Retail sales will increase at a yearly rate of 3.590 next summer. Inflation will be 4.20/o in 1986, up from 3.690 this year."

The Conference Board

Washington, D.C.

"The prime rate will declin e from9Vzo/o at the end of this quarter to 8/20/o atthe end of March, and then rise from 990 in the second quarter to I I 9o by the end of 1986. Fixed-rate mortgage rates will climb from | | Vz vlo at the outset of I 986 to 120/o by midyear and to 140/o by the start of 1987."

David Jones Senior Vice President

Aubrey G. Lanston & Co.

New York, N.Y.

(Please turn to page 7l)

OPERANNG OPPORTUNINES

WALLY LYNCH

Builders Express, Inc.

11550 Plano Rd. Dallas, Tx' 75243 of the public especially by paid announcenent. t t

ANY COMPANIES spend money on advertising and point to their operating statements as proof positive. More often than not, the expenditures prove to be accounting entries lumped into advertising. A look at the books reveals outlays for entertainment, travel, sponsoring a Little League baseball team, etc., but nothing for advertising. The word, which has become a catchall for all kinds of expenses, needs to be taken from the accountant and returned to the merchant.

The American Marketing Association defines advertising as: "Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor."

A dictionary defines advertising as: ' 'The action of calling something to the attention

Another source says advertising is: "A paid presentation of the merits of products or ideas of commercial significance to a mass audience by an identified sponsor via such media as newspapers, television, radio, magazines, billboards and direct mail."

Within these three statements we can identify meanings applicable to any overview of advertising, but as generalities, they won't apply specifically in each and every instance, For our purposes, we want to view advertising as the one who sells products to the final user doesas a retailer.

The realities of advertising begin with establishing a one-way communication system to the inhabitants of your trading area. Cranted it can be very sophisticated and expensive, but fundamentally advertising is purely and simply one-way com-

munication between seller and buyer.

If asked to write a letter to a customer or to several customers. few executives would have any reservations and would do it without a second thought. Other kinds of one-way communication are tape recording, either audio or video, pictures and paintings.

In advertising parlance, the letter is classified as print media, as is a brochure or statement stuffer. The tape recording translates into radio when audio and television when video. Pictures and paintings communicate as advertising in newspapers, magazines, billboards, direct mail and catalogs.

The second reality of advertising is that one-way communication is substantially more difficult to use effectively than personal selling. Whenever there is give and take in communication. its chance of imparting the correct message increases drastically. Hence, one-way communication serves to bring the customer into the place of business so that the externally begun dialogue can be completed internally.

The third reality of advertising is that what is communicated initially better be what it is said to be. This doesn't mean technically. It means that in the eyes of the customer the message must be discernible as represented.

The fourth reality of advertising is that

one must have something to say in a oneway communique. The author can't write a book without a story to tell. The merchant must give the customer a reason to get into an on site dialogue in his store.

The fifth reality is that advertising is the tip of an ice berg. It lets everyone know that it's there because a little bit shows above the water line. The foundation under water is not visible, but without it the visible part could not exist. The store is the business end of whatever the advertising claims and it had better be capable of coping with those attracted and their needs.

Like anything else that appetrs complicated, advertising can and should be broken down into its simplest parts. Certainly there is a creative segment to advertising that few managers know the "how" of doing. On the other hand few artists know the "why" of advertising. Combining the two talents is neither difficult nor expensive if managedeach basic part in its time and place.

Gordy Martin Gary Malfatti Bob Haas John Blatchford Mike Mosby

Wood markets are changing

By H.A. Roberts President Western Wood Products Association

llt HILE MARKETS for sortUU wood lumber should see changes in 1986, western mills can expect U.S. lumber demand levels to be

near those experienced in 1985.

Total softwood lumber demand in 1986 is forecast at42.655 billion board feet, down modestly from the estimated 43.075 billion board feet mnsumedin 1985.

Imports from Canada are anticipated to supply 14.2 billion board feet to the U.S. market in 1986, down from a record 14.4 billion board feet estimated in 1985. Domestic producers, who supplied 28.68 billion board feet this year, are expected to provide 28.46

billion feet to the U.S. markets in 1986.

Part of the decline in consumption will be a reflection of fewer housing starts in 1986. WWPA is forecasting housing starts next year to total 1.65 million, down from 1.7 million estimated for 1985. Lumber used in residential construction should decline to 15.75 billion feet in 1986, compared to an estimated 16.25 billion this year.

Other markets for lumber, however, should improve in 1986 and offset the losses ifl residential markets. Repair and remodeling usage should rise from an estimated 11.44 billion feet this year to 11.73 billion feet in 1986, comprising26.60/o of total lumber consumption. The share of lumber used in repair and remodeling has grown steadily since 1978, when it accounted for only 19.690 of the lumber consumed.

As the U.S. dollar continues to decline in value compared to other currencies, export markets for lumber should pick up. After declining to an estimated 1.575 billion feet in 1985, lumber exports are forecast to increase 590 to 1.65 billion feet next year.

Non-residential markets should fall

Story at a Glance

Soltwood lumber demand ol 42.655 billion bf...slightly lower Canadian imports...1.65 million housing starls...better export market...WWPA will stimulate demand.

modestly in 1986 and lumber used in this category is predicted to total 6.575 billion feet, compared to 6.69 billion feet this year. Much of the weakness in this market rvill be centered in farm, offiee and manufae t uring consl ruction activity.

Slower growth in the industrial sector of the U.S. economy will be evident in the amount of lumber used in the materials handling category. Lumber used in this category is predicted to lall slightly to 4.33 billion ieer nexr year. Additional military buying and improvement in furniture and consumer products should almost offset declines in railroad and mining for the "other uses" consumption, which is expected to total 4.28 billion feet next year.

WWPA will continue its aggressive marketing program in 1986 ro srimulate demand for western lumber oroducts.

TUFT

(Continued frorn puge 9 )

changes in the tax code and a favorable affordability picture.

Renovation continues to be a growlh seclor in rhe consrrue I ion market particularly in the northeast where premium location considerations favor rehab. This segment off'ers opportunity to all sectors of the building industry because of the wide variety of projects undertaken from residential lvork to major urban development tracts. Although a 1590 gain is anticipated in this sector, a possible change in the tax code, the removal of the Investment Tar Credit, will delete a major underpin in the current renovation market and result in declines in activity from current levels.

The d-i-y market is also expected to remain strong. With 8090 of d-i-y projects undertaken lvithin two years ol' a house purchase and sales of existing homes at a record level 3.4 million, the foundation has been set for a continuation of the l29o annual growth of the d-i-y market that has been occurring for the past decade.

Compared to the past year of stability, 1986 will be the apogee of rhe current construction cycle and the beginnings of decline. As the economy continues its slorrdown, the conslruclion industry will be challenged by declining conditions. To grow and prosper, the building industry must adapt to the changing needs of the market and align itself with the growing challenge presented by new'technology that will transform the construction industrv as we know if todav.

SPECIALIZED TREATMENTS NOW AVAILABLE

r Wolmanized Lumber

r Heavy Oil Penta

i Waterborne Penta

. Dricon Fire-Retardant

. Creosote

PRODUCTS AVAILABLE

r Cedartoneo

. Landscape Timbers

r Railroad Ties

. Poles

. Posts

. Dricon Fire-Fletardant Treated Wood

r All Weather Wood Foundations-

. AWPB-FDN Stamped For information on quick sevice call the treating expetts

Home centers must

upgrade selling skills

By Robert C. Vereen Senior Vice President/Director Home Center Institute

HE HOME CENTER re-

tailing business has never been as competitive as it currently is. Not even discounting is as competitive. Discounters learned long ago not to worry about being outpriced on a few items in a promotion. Home centers aren't happy if that happens and are matching or beating any

By

advertised price.

5, l0 or as much as20o/0.

Thus this industry is in the midst of an intensive pricg war, and if price is to be the battleground, what is there to

distinguish one home center from another? The answer of course is a combination of other factors, but chief among these should be the quality of employee service and advice.

Story at a Glance

Home center business has never been as competitive... price is the battleground...employee service a vital weapon ...industry must develop selling skills.

While all retailers talk about their employees and their training programs, surprisingly few make a serious and prolonged effort to upgrade performance. Programs that start out meaning well get caught up in the battle to keep payroll expenses down. The fastest way to cut expenses is to reduce payroll, or to hire more part-timers. Both conflict with the need of home centers to man their floors with qualified people, especially if there is any hope of building project sales, rather than promoted-item sales.

Recognizing this problem, Home Center Institute is embarking during 1986 on a new employee training program that attacks the basic need of developing selling skills.

One may still need to control payroll expenses, but the best way to do that is not by cutting back on people but by making people more productive. Retailers need to do something to teach the basics of customer relations and selling skills to their employees.

One may have to fight for customer business on price. The market may leave no choice. But qualified employee service is what will build repeat (and add-on) business.

DR. POZDENA

WE SPECIALIZE IN PRE-STAINING "YOUR MATERIAL" IN ALL OLYMPIC COLORS. COATING ALL 4 SIDES OF EXTERIOR SIDING AND DIMENSIONALTRIM. PLUS 4 COAT APPLICATION ON ALL SIZES OF PLWVOOD. ENCLOSED WAREHOUSE FACILW.

l916l33ti-6tr't t

& MACHINE STAINING

(Continued from page 15) distortions in markets particularly at'fected by the approach taken in most of the reform proposals.

In particular, a more radical reduction in marginal tax rates and a true, across-the-board simplification in the tax code would be necessary to provide sufficient macroeconomic stimulation to offset the dislocations caused by loss of favored ftu( treatment. The housing industry is especially vulnerable to injury from piece-meal reform. Indeed, current levels of rental unit construction activity probably have been exaggerated by investors' anticipation that any tax changes would affect adversely the future rental property developments. At this time, it would appear that such expectations, in retrospect, will have proven to be correct.

g outtnPTc" INACHINE ST4INING

....GOWITHTHE PROFESS'OruAIS FOP olUAUflCONTrcUED PRE.STAINING. .

NHIA's 88th annual

ESPONDING to the continued effect of foreign competition,the National Hardwood Lumber Association kicked off its opening session with an in-depth look at offshore markets.

It was one of a number of important issues NHIA addressed during its 88th annual convention. held in Los Angeles, Ca.; a first time for that city and only the third time the annual meeting has been held in the west.

In his opening talk, E.R. Thomas, Jr., NHLA president, made a strong appeal for more promotional funds for the Hardwood Institute, part of NHLA. He noted that "promotion is virtually unheard of in our industry."

The first speaker, Dana G. Fitzpatrick, Fitzpatrick & Weller, reviewed the European market on a countryby-country basis, noting that Switzerland, Spain, Austria and ltaly are growing markets for the U.S. He said that while current markets were down, the long term trend is up, the key being a stable American dollar.

Peter M. Ross, Ontario Hardwood Products, Ltd., observed that "our industry has become part of the global hardwood market." Ross said that the Pacific Rim countries were the "hottest areas" and that Japan and Taiwan were the strongest markets for American hardwood. Asia is a permanent growing market and one that will increasingly continue to affect U.S. hardwood people.

Steve V. Losser. National Dimension Manufacturers Association, said the hardwood industry needs to be more marketing oriented and more consumer directed. In an excellent slide presentation, Losser illustrated how imports were gaining in importance and how marketing strategies must take this into effect. "Our customers are going overseas," he warned.

John V. Ward. National Forest Products Association. said that the American hardwood industry must go with the shift of the business to the Far East. "We can't fight it," he said, adding that "they have the labor, the products and the market."

He also noted the forming steps being taken at the NHI-A meeting to create the Hardwood Export Trade Council to help promote greater use of American hardwood in international trade.

The following day, at the general session, new directors were elected to serve three year terms. They are: George "Bud" Baker, Baker Hard-

Story at a Glance

Ef f ects ol import/exporl changes discussed...some Rules changes...new directors elected...next year's meeting: Montreal, Canada.

wood Lumber Co., National City, Ca.; Wendell M. Cramer, W.M. Cramer Lumber Co., Hickory, N.C.; James R. Duncan, Monticello Hardwoods, Inc., Monticello, Ms.; Roman B. Oser,, Kimball International, Inc., Jasper, In.; Arthur H. Ploetze, Schaller Hardwood Lumber Co., Poplar Bluff. Mo.

FOR MORE PHOTOS SEE PAGE 46

The meeting, which was held at the Century Plaza Hotel, October 2l-23, also adopted some Rules changes affecting Philippine mahogany, "Clear Face" cutting grades of surfaced lumber and the standard grade of seconds. Association bylaws were amended to increase the communication and education

(Please turn to page 46)

HARDW000 men(1) C. F. Hopkins, Charlie Robinson, Ralph Elliot. (2) Shirley & Walter Fields. (3) Walter Ralston, Lyman Shipley. (4) Rob Flora, Bob 0wens. (5) Bud Baker, Gerald Slavney, James Hartf . (6) Mike King, Al Crownover, Wyatt Strong, Larry C00k. (7) Michael McKenzie, John 0sgood, Tom Escherich. (8) Fred Gill, Doug Hay. (9) Butch & Mari-

lyn Pope. (10) Wanda & Tom Flynn, Donie Bruder, Bob Conger. ('11) Peter Haley, Sylvia & Werner Richen. (12) Harry tudden, Steve Bushman, Al Trubin. (13) Howard Scott, Jerry Horner. (14) Bob Keiver, Warren Jimerson. (15) Vic Lindstrom, Mike Moscoe, Mike Ploghott. (16) Daniel Bohannon, Diane & Larry Knox. (17) John Mullen, Charles Jordan. (18)

Dennis Snow, Craig Kincaid, Wayne Frank, Dan Swett. (19) Gordon Suckow, Bud Mikelonis. (20) Karl Schmertzler, Ramsay Grant, John Crvich, Wally Atkinson, George Clay. (21) Paul hndergast, Kim & John Buchanan. (22) Rich Blinkhorn, Larry Holguin, (23) Tom McMillan, Larry Knox.

Upbeat attitude will win

By H. P. (Hank) Sandstrom Vice President and Ceneral Manager Simpson Redwood Company

flu* REDwooD operations

Not too many years ago thar many

are heading into what appears starts was considered a pretty fair to be a down-tick 1986 market with a market for industrv. That's not so anymoredue to dramatic increases in capacity and equally dramatic shifts in where the lumber is coming from.

Y

As reported earlier. our company is investing $13 million to upgrade its Korbel sawmill into one of the most ef f icient and productive in the industry. This, in addition to $15.7 million already spent at Korbel since 1979, represents a lot of management confidence in the future of our redwood part of the North American lumber industry.

And that industry has its problems in the marketplace where 1986 looks almost like a rerun of 1985. Housing starts for 1985 are now projected at an annualized 1.7 million. For 1986 they are projected at 1.65 million with a slow first half.

In 1970 U.S. and Canadian mills produced 38.343 billion board feet of lumber. In 1984 that volume reached 52.742 billion board feet with much of the production coming on stream

Story at a Glance

during the housing heydays of the late 1970s.

Today, supply capacity significantly outstrips market demand.

U.S. lumber producers have felt a further impact from the shift in supply sources. Canadian lumber which shared 30.790 of the North American production during a 1970-1974 five year period jumped to 40.30/o during a similar period ending in 1984.

Despite these factors the outlook is not all that gloomy for those willing to work for it and our marketing team looks to the future with confidence.

The answer, they say, lies in aggressive, creative programs to recapture some of the markets lost to substitute products, treated pine decking and importsall backed by an efficient and cost-effective manufacturing system.

That's the name of the game.

He who produces the best product at the least cost will take the winner's cup.

Down-tick market...rerun of '85...supply outstrips market ...Canadian lumber will remain strong...aggressive, creative marketing backed by efficient, cost-ef tective manulacturing is the answer.

YouCan TellWhen The Product ls Just Right!

Forest Fiber is as careful in developing its siding products as homeowners and builders are in selecting home sites. We work until the product is just right, which in the case of Forestex 5-16 is an additional four inches in a piece of siding. A third more means faster installation and less material waste. Only one additional nail required at each stud.

Forestex 5-16 also has the beauty and economy of our other sidings: the selfaligning features which speeds installation, the traditional look of lap siding in a smooth finish or a roughsawn cedar finish, and the durability of quality hardboard. lt withstands normal hammer blows and will not delaminate, check, crack or split, when properly installed.

Homebuilding Strong In'86

Supported by stable interest rates, a rise in 1986 residential building will sustain next year's construction market at a record level, says George A. Christie, vice president and chief economist of McGraw-Hill Information Systems Co.

He forecasts 1986 construction contracting will rise 2v/o to reach a record $226.1 billion. He points out that "Next year's favorable interest rate prospects should give an edge to homebuilding over commercial and industrial construction which will be handicapped by a sluggish economy and the probability of tax reform."

"Since 1983, housing starts have settled into a remarkably steady groove at close to I .75 million units per year," Christie indicated. "And there's a very good chance that this three-year stretch of strong housing activity will go to four in 1986." He said that the forces that dominated the housing market during the first half of the 1980svolatile interest rates and complex tax sheltersare receding. In their wake the basic, underlying determinants of the demand for shelter, such as demographics, public programs, affordability and regionality,

will begin to reassert their influence.

"Home ownership in 1985 is more affordable than at any time since this decade began. With interest rates steady or lower in 1986, it can be expected that new housing will be slightly more affordable next yeil," Christie pointed out. "As this trend continues, the housing industry can expect to realize a larger proportion of the potential implied by the market's demographics." Christie expects that total residential building will top $l12.6 billion in 1986, upTu/o over this year's anticipated level.

Regionally, the west will post the strongest gain in contracting value next year, rising 490. In the south, construction will grow a modest l9o, with the northeast and north central states showing 2 and 3s/o gains, respectively.

Housing Outlook Favorable

Climbing down from peak levels earlier this year and in 1984, housing activity nevertheless will remain surprisingly buoyant during 1986, according to panelists at a forecast conference sponsored by the National Association of Home Builders and the

National Council of the Housing industry.

Analysts at the conference were unanimous in their predictions of a relatively stable economy during the next 12 to 18 months and noted that the current recovery has demonstrated exceptional staying power despite prognostications of doom and gloom stemming from the nation's towering federal deficits.

The forecasters also agreed that the Federal Reserve Board has embarked upon a more accommodative course that eventually could make some sacrifices on the inflation front for the sake of monetizing the deficits and keeping economies afloat both at home and abroad.

Conference panelists predicted only a mild downturn in housing production next year. Housing starts during 1985 are expected to total more than 1.7 million units.

HAPPY HOLIDAYS

Posts, poles, pilings, timber, crossarms, grapestakes, dimension lumber. Pacific Wood Preserving of Bakersfield produces virtually all pressure treated wood products. And, with computerized inventory control, Pacific Wood Preserving of Bakersfield offers accurate and complete service. A single phone call can putthis complete capability to work for you. Gall today:

Steve Ryan, General Manager

In California (800)582-3950

Outside California (805) 833-0429

Pressu re-Treated Lu m ber

to th

First \\'cverhacuscr s commftIccl Choice Service every step of No exception. eway

Competitive Pricing weyernaeuser Dr ces dre

o Ad.S ioroet l'.e vo. ca^ count on rl You cal arso consistent oLra tlV of products at the best value n the industrv Da'r' n and day out.

Reliable DeliVefy when weyerhaeuser peopre s,ve yoLr the r word you can rel! on rt All orders will be shipped when prom sed on time No excuses. l{ a problem does occur we wtl go the extra mile to sattsfy our customer

COnSiStgnt QUalitV weve, r,aeu se' p rod u c ed p rod ucrs .*l are measureo aga,nsL ' g o duarrly cont'ol standards. We will not d'lW

4qe-S cJI cor^ers. You can 'e y on Weverhaeuser producls to meet your

= nerformance expectations. Products purchased for resale by

Weye'haeuser wiil meet the same demanding 'squirsrngn{5. lf il

comes f rom us. vou can count on cualitv.

F7 u^- ^

Dependable ServiCe weyerhaeuser cusromer -' n9he cente'

Servi6e Centers are convenrently located to meet the suppry neeos

'l;s\\l- r

of our customersquickly and accurately. We work with our customers as partners, anticipating their needs and staying ahead with new products and new ideas. And ourTrading Centers are primed to give you prompt service on alldtrect-mill needs

PgOpleWhO Cafg you wjllalways set a qurck responsd, accurate information and insightful cooperation from the people of Weyerhaeuser We are dedicated to solving customer problems, and working hard to be the preferred supplter. Your respect is Weyerhaeuser's top priority. We will never take it for granted.

"Mistakes cost us a ton of money. We have to go with someone we can trust. We want a reliable source of supply. We want the right materials on time. And when it oets here we want a quality product, no exceptions. Weyerhaeuser is not a Johnny-comelately. They know us. They know our market. They know how to help us make money."

Jl M CAMPBELL, President Spenard Builders Supply Anchorage, AK

Potlatch Blocks Takeover

What stockmarket analysts described as "greenmail" of the Potlatch Corp. by the wealthy Belzberg family of Canada was blocked last month when Potlatch boughtback 2.4 million of its shares for $l0l million, including the Belzberg's 7.ls/o.

Analysts have coined the term "greenmail" to describe situations in which buyers do not want to take over a company, but buy large stakes in hopes of a quick gain through stock buy backs or by makingthecompany a takeover target.

Using the First City Financial of Vancouver, B.C., which they control, the Belzbergs had purchased 1.09 million shares and options of the San Francisco, Ca., forest products firm. Potlatch bought these back for $43 a share or $46.7 million. First City recorded a pretax gain of $8.7 million on the transaction according to the company. Potlatch also paid First City $990,000 to drop a lawsuit to block an anti-takeover amendment proposed by Potlatch. First City also agreed to buy no Potlatch stock or take part in a takeover of the company for five years.

Shareholders will have an opportunity to approve the anti-takeover "time-phased voting" plan at a special shareholders meeting Dec. 12. The plan gives long term shareholders more votes per share than short term shareholders.

Potlatch's stock repuchase allowed stockholders with short term goals to sell out and frustrated First City's effort to acquire control of the company at what the board considered an inadequate price and poor time to sell the company, according to Richard B. Madden, Potlatch chairman and c.e.o.

Rail Abandonment Fought

A special Oregon state task force hopes to save some of 26 rail branch lines identified as possibly being abandoned because of cost+utting by the state's three major railroads.

The Southern Pacific, Union Pacific and Burlington Northern branches serve the cities of Brownsville, Burns, Condon, Dee, Heppner, Lakeview, Monroe, Stayton and Tillamook.

Zayre Set To Buy Homeclub

HomeClub Inc., the fast-growing discount home center chain, has agreed to be acquired by East Coastbased retail firm Z,ayre Corp. for approximately $l5l million in stock.

Under the agreement announced Nov. 19, the Framingham, Ma.-based operator of discount and specialty stores would trade $14.25 for each of HomeClub's 10.3 million outstanding shares, with an option to buy more.

HomeClub shareholders will vote on the sale at a special meeting in early January.

HomeClub, started in October, 1983 with two stores in Norwalk and Fountain Valley, Ca., and $4.5 million in venture capital, now has 15 stores, mostly in Southern California. Three more stores are to open by the end of 1985, with l8 set to added in California and other western states in 1986. The firm earned $1.7 million on sales of $90 million for the six months ending July 28.

Under the trade agreement, cofounder and president Robert McNulty and key staff members would continue to run the company for another three years.

(Continued from page 36)

aspects of the NHLA as well as to accept custom kiln dryers and hardwood timberland owners to membership eligibility.

In other business it was agreed to increase inspection per diem fees for NHLA inspectors to $145, to increase the reimbursement for lumber handling charges in complaints or reinspection to $15 per thousand or actual cost, whichever is less, and tentatively approved acceptance of the Hardwood Research Council into the framework of the NHLA.

Attendance was nearly 1250, making it the largest gathering of hardwood people in the world. Next year's meeting will be held at the Queen Elizabeth Hotel, Montreal, Quebec, Canada, October 20-22, 1986.

REUUING were (1) lQy Green, Martin Schmidt. (2) Jo & Ken Tinckler. (3) Jim & Dawn Summerlin. (4) Sandi & Don Weber. (5) Mark Michie, Janice & Dennis Johnston. (6) hggy & Rob Kincaid.

Your glulam inventory ius-t_got biggen And more profitable.

Starting today, our multi-million-dollar glulam beam inventory is as good as yours.

Just call the nearest of six Weyerhaeuser Customer Service Centers with stock glulam inventory.*

It's as convenient as your own warehouse. And more profitable.

Here's why: You expand sales using capitalwe've invested in our inventory, not your own; we take trim losses, you don't; we accept the inventory risks and provide the space.

All six Customer Service Centers have stock glulams in depths from 6 inches to 30 inches; in widths

to 67q inches; in any length. They also supply architectural and industrial beams, designed, precision cut and delivered to your specifications.

One more point. Each of our Customer Service Centers is committed to Weyerhaeuser First Choice Service- a pledge to deliver consistent quality, reliable service, on time, at a competitive price.

This glulam beam inventory and the First Choice Service is available within hours of vour needs in the western states.

It's that way with stock glulam beams. And with our full line of building materials.

'Seattle: 1-800-562-0908, (Outsidewbsh.) 1-8m-426-6466, Extqsion 5813. Forttand: f8@-522-8a11,

Speakers Cite "Service Value"

This advice by Tom Peters, author of In Search of Excellence, was part of a presentation at the National Hardware convention in San Francisco. D. Bruce Merrifield Jr., president of Merrifield Consulting Group, joined him in examining the importance of value added services as a marketing tool and key to marketing excellence.

Peters concentrated on the perception of the customer, indicating that the winning institutions are those that are customer driven. He maintained that excellence in quality of the product should be seen as a given and that excellence in service is the key fector in a customer's perception of a product or company. "Perception is all there is. There is no steak," he asserted. "There is only sizAe."

Peters then turned to a discussion of the management attributes he has uncovered which foster an environment that produces excellence. Excellence, he indicated depends on "incredible quality plus incredible service plus in-

novation. To achieve an innovative work environment, he advocated a willingness to take an experimental approach to problem solving; a willingness to champion new ideas; and a commitment to decentralization of authority. "Employee commitment, not authority, produces results," in Peters'view.

Merrifield concentrated his remarks on value added services as a key to improving the overall value of distribution services. He said that the great majority of hardline products are essentially commodities. The total product,however, is a combination of the product and a package of services related to how it is sold or delivered.

Merrifield observed that competitors vary widely in the quality and consistency of the expected and extra services they offer. These services are an essential component in the overall value of the product and the basis by which it can be differentiated from its competitors. They are a far more comprehensive and accurate measure of the value of the product than price alone, according to Merrifield. Therefore, to achieve a unique position in the market, it is necessary to achieve a high level of service excellence.

Having established this definition of value, Merrifield applied it directly to the services offered by wholesalers to manufacturers, noting that distributors perform the essential function of moving the product to its end user more efficiently and economically, in many cases,than can be done by the manufacturer when he is shipping direct. Merrifield listed some of the key value added services provided by the wholesalerdistributor as consolidation of selling, billing and credit costs; consolidation of purchasing storage costs and the halving of the transactional costs of a logistical breakpoint and assortment.

American Hardware Manufacturers Association president Robert W. Brady, National Wholesale Hardware Association president Don A. Wolf and NWHA vice president Michael C. Tucker presided at the Oct. 19-23 convention. The 1986 session will be held at the Hilton Hawaiian Village, Honolulu, Hi., Oct.26-29.

AHMA held its annual meeting during the convention and elected Richard G. Mason, president, Ames Co., Parkersburg, W.V., as 1985-86 president.

"Winners win because they give the customer something worth paying foryou win by superior value rather than low price."

@m afgurisfgctu mltu friemils

mmil hmtupfu rupfo fricmfus, t 50tr50n[ 5 srournil[ss

mmtu chpr{ $mmn tuisft

da( ror nr M0rq qmflflu

Nnm $umr

Treated Wood Buyer's Info

The retailer is the key to the success of the voluntary Consumer Awareness Program for treated wood being instituted as part of the wood preservative settlement agreement with the Environmental Protection Agency.

Each person buying pressure treated wood must be given a Coirsumer Information Sheet (CIS) advising him to wash his hands after working with treated wood, wear a dust mask when sawing or machining such wood, wear goggles to protect eyes from flying particles when power sawing and to dispose of treated wood scraps by burial or normal trash collection rather than burning.

Treaters must attach a CIS to each bundle or batch of pressure treated

Home Centers Financial Clout

At a level of $43 billion, the homecenter/hardware industry is one of the most important industries in the United States economy today.

The building trade accounts for 520/o of sales with the do-it-yourself market buying the remaining 4890. These figures were compiled for the 1985 Directory of Home Center Operators,/Hardware Chains published by CSG Information Services.

Home Center Show In Chicago

Expansion of Chicago's McCormick Place has made it possible for the National Home Center Show to secure dates on an annual basis beginning next year.

The lGyear-old exposition, designed to serve the $56 billion do-it-yourself home improvement market, has been forced outside of Chicago five of its

wood leaving the plant plus attaching a CIS to each pressure treated wood sales invoice and provide adequate quantities of information sheets and signs or placards to wholesalers, retailers and other distributors.

In addition to distributing the CIS to each purchaser of treated wood, a distributor (wholesaler or retailer) must display the sheets at the sales counters and post signs in the sales area.

The program, which will go into effect immediately, will be evaluated in June. Pressure treated wood associations are urging all those who produce, sell or promote treated wood products to make every effort to ensure the success of the program.

l0 years due to a conflict with the show's March dates.

The 1986 show is scheduled for March 9-12 and already more than 360,000 net square feet of space has been reserved by exhibitors.

Dealer Against Canadian Duty

All lumber prices will go up if duties are placed on Canadian lumber was the message from Bob Withers of Withers Lumber, Woodburn, Or., when he testified before the Senate Committee on Finance against restrictions on Canadian lumber.

Representing the National Lumber and Building Material Dealers Association, Withers said "The apparent benefit of increased prices to domestic producers would at best be only temporary, but the increased housing costs for U.S. homebuyers would be devastating to our building industry and to the overall U.S. economy."

Although most of his lumber inventory is from mills in the United States, Withers asked the committee not to place tariffs or quotas on the import of Canadian softwood lumber as incorporated in S. 1292 and S. l2U. "Should duties be placed on Canadian lumber, you can rest assured that there will be significant increases in the price of all lumber whether made in the U.S. or Canada," he testified.

Burnout Spurs Owner's Sellout

Boredom and burn-out continue as the number one reason that the majority of business owners cite when asked why they have made the decision to sell their business.

"In more than half of the 25,000 businesses that will change hands in the coming 12 months, boredom with running the business and burnout on the part of the business owners will top the list of reasons for selling," said Arthur D. Perrone, Jr., president of Geneva Business Services, Inc., a Santa Ana, Ca., headquartered merger and acquisition firm.

Tie-ln Sales For Skylights

"Let there be light" describes a major trend in home improvements today. Greenhouses, skylights, enclosed patios, replacement windows and window additions head the list of projects most demanded by homeowners.

Along with the advantages of natural sunlight come discomfort, increased air conditioning costs, fading of fabrics and discoloration of furniture finishes. To offset these

Lack of operating capital and growth capital are the second most common motive for selling, according to Perrone. Third most common reason for selling is the fact that the owner's children have no interest in running the business. Only 3090 of businesses today are passed on to the second generation. Of that 3090, only 159o go on to the third generation.

Next most common reason for selling is the business owner's desire for liquidity. Age and health are other reasons that business owners sell. The final reason that many business owners sell is that thev have other interests.

inconveniences, a dealer should sell window treatments along with skylights, replacement windows and related projects.

Window treatments are natural tiein sales, especially with affluent homeowners. A wide variety of awnings, rolling shutters, skylight blinds and window screening devices iue available. Many come with motorized controls to regulate their adjustment and eliminate manual operation.

Aluminum Windows Sell Best

Aluminum windows accounted for 5890 of the residential prime window sales last year according to an American Architectural Manufacturers Association market research study.

Wood accounted for 3590, vinyl 590 and other materials such as steel for 290. Residential prime window sales have increased 3090 since 1982 with residential skylight sales rising 5090.

Grant Hardware Expands Plant

Grant Hardware Co. has more than doubled its warehouse and manufacturing facilities in City of Industry, Ca., increasing its square footage to almost 100,000 sq. ft.

Environmental Hotline

The Environmental Protection Agency has a toll-free small business hotline to aid those needing help in understanding and complying with environmental regulations. The number is (800) 368-5888.

Richard Passaglia is the new retail div. gen. mgr. of the O'Malley Lumber Co., Phoenix, Az. He was most recently western regional v.p. of K mart's Builders Square and before that with Wickes and W. R. Grace. He will work with long-time div. mgr. Dean Drake until Drake's retirement Jan. l. James C. O'Malley Jr. will become mgr. on that date of the company's industrial yard, succeeding Bill King who is also retiring.

John McTavish is back as lumber buyer at Ray Lumber Co., Phoenix, Az.

Ralph Lamon, Lamon Lumber Co., San Francisco, Ca., is back from a New Orleans trip.

Kurt Kuhn is new to TreeSource, Inc., Portland, Or.

Ron J. Holton has been appointed v.p. of marketing and sales for Canfor U.S.A. Corp., according to Dennis R. Hustom, pres.

SterlingWolfe, Marquart-Wolfe Lumber Co., Tustin, Ca., and his wife, Lorraine, are back from a month's trip to the British Isles and Mallorca.

Bob Walten is now co-mgr. of 84 Lumber Co., San Dimas, Ca.

Mike Dunkle has been appointed gen. mgr. of Mendo Mill Home Center and Lumber Co.,Fort Bragg, Ca.

G. Raymond Lopp has been promoted to senior v.p. of Babbitt Brothers Trading Co., Flagstaff, Az., according to William R. Gails, pres.

Bob Erickson is the new western sales mgr. for Dutch Boy paints.

James R. Daniels has been named So. Ca. sales rep for Evanite Permaglas, Inc., Fontana, Ca.

Bob Connell is now v.p. of sales at Fluidmaster, Inc., Anaheim, Ca. GaryHarris replaces him as national sales mgr., Norm Anderson is the new exec. v.p. and Bob Schoepe is the new v.p. of special assignments. Fred Schmuck, senior v.p. of corporate development, heads the new marketing committee.

Dick Hoover, A.L. Hoover Co., El Toro, Ca., is back from a three week East African vacation in Kenya and Tanzartta.

Wayne K. Lincoln has rejoined MidPac Lumber Co., Honolulu, Hi., as gen. mgr.

A.H. "Ike" Parker. National Lumber and Building Material Dealers Association director and Western Building Material Association past pres,, was honored at a special luncheon by the Bremerton, Wa., Chamber of Commerce.

Lce Xlain is new to sales at Canyon Timber Products, Myrtle Creek, Or.

Jim Morris, Potlatch Corp., Lewiston, Id.; Bob Barles, Multnomah Plywood Corp., St. Helens, Or.; Bill Black, Plum Creek Timber Co.. Inc.. Columbia Falls, Mt.; Don Graves, Southwest Forest Industries, Phoenix, Az.; Bill Gregory, Gregory Forest Products, Inc., Beaverton, Or.; Tom Ingham, Simpson Timber Co., Shelton, Wa.; Duke McQueen, Kogap Manufacturing Co., Medford, Or.; Chuck Mintken, Anacortes Plywood, Inc., Anacortes, Wa.; Lanny Osterhage, Weyerhaeuser Co., Tacoma, Wa.; Dick Parrish, Boise Cascade Corp., Boise, Id.; Jack Rowbotham, Bald Knob Cress-Ply, Cresswell, Or.; John Schick, LouisianaPacific Corp., Portland, Or.; Darrell Schroeder, Miller Redwood Co., Portland, Or., and Floyd Vike, Willamette Industries, Inc., A-lbany, Or., are serving on the 1985-86 American Plywood Association board of trustees.

Ronald A Pink is now managing director of Sentry Hardware Co., Cleveland, Oh.

Suzanne S. Beaver,who was the wife of Stanwood A. Murphy, late pres. of Pacific Lumber Co., San Francisco, Ca., has resigned from the Palco board after I 3 years as a director in protest of its acquisition by Maxxam Group Inc.

Jim Hunter, Schmidbauer Lumber Co., is back in Eureka, Ca., after a European business trip.

Bob Croy is new to outside sales at Sequoia Supply, Orange, Ca. Glen Hall is now in inside sales at Fairfield, Ca., where Debbie Johnson has moved to outside sales from purchasing, according to Bob Riggs.

Allen McDevitt has been named v.p. softwood div. and elected to the board of directors of Universal Lumber Co., Inc., Portland, Or., according to Dick Winn, pres. and chairman of the board.

Wayne Karnoski has been appointed west coast regional sales mgr. for Wing Industries, based in Orange, Ca.

Bob Jacobs, Los Angeles, Ca., is now a sales rep for BFGoodrich wallcoverings product group in So. Ca., southern Nv. and Az., according to Ed Gill, gen. mgr.

Gary Stewart, Stewart Hardwood, Los Banos, Ca., is back from a Montana hunting trip.

Bud Swanson, Iseman's Inc., Hanford, Ca.; Ken knhart, Lenhart True Value Hardware, Mesa, Az.; Bill Meanley, Meanley & Son, La Jolla, Ca., and Dick Morris. Morris & Co., Weaverville, Ca., have been named outstanding members of the California Pacific Southwest Hardware Association, according to William R. Maze, executive director.

Ken LaRue is a new asst. mgr. at Sequoia Supply, Orange, Ca., according to Bob Riggs.

Paul Andenon has joined the sales team at Berger & Co., Sacramento, Ca., according to Robert Glatt.

Paul W. Frederickson is now in sales at Fullmer Lumber Co., Tigard, Or.

Ben Beddingfield has joined Westgulf Export Lumber Co., Portland, Or. Rick Schaefer, pres., Pacific Commercial, will work with Westgulf now that the company has taken over PC's sales activities.

Ed Fountain Sr., pres., Ed Fountain Lumber Co., Los Angeles, Ca., and his wife, Vivian, spent four days recently on a house boat on Lake Powell, Ca. Jim Vandergrift is new in sales at F. H. Stoltze Land and Lumber Co., Columbia Falls, Mt. Joe O'Rourke is in charge of traffic.

Art Mills is now in sales at F & L Lumber, Wilsonville, Or.

Ed Mason, Great Western Lumber Co., Everson, Wa., has been elected pres. of the Western Hardwood Association at their annual meeting in Scottsdale, Az. Also on the board are v.p. Paul Meyers, United Forest Products, Portland, Or.; treasurer Jack Kohl Jr., Kohl, Inc., Wilsonville, Or., and directors Don Reel, Reel Lumber Service, Anaheim, Ca.; Bill Morrison, International Hardwoods, Inc., Portland, Or., and Mike Starling, Tumac Lumber Co., Portland, Or.

Frank Sween will continue as mgr. of the former L-P Lumber and Home Improvement Center, Ventura, Ca., just purchased by the Terry Cos. Gary Overmyer will also remain as mgr. of the new Terry Lumber Co. in Camarillo, Ca.

Kathy Perkins is new to sales at The Nikkel Corp., Sacramento, Ca.

John Strader has joined the sales team at Thomas Forest Products, Eugene, Or.

Kurt Kuhl is new to the sales staff at TreeSource, Inc., Portland, Or.

Jeff Moore has been promoted to sales mgr. at Warrenton Lumber, Warrenton. Or.

Dick Miller has joined Hearin Forest Industries, Portland, Or., as lumber and plywood coordinator. Debra Roser is new to lumber and plywood sales.

Ron J. Holton has been appointed v.p. of marketing and sales for Canfor U.S.A. Corp., Boise, Id., according to Dennis R. Huston, pres.

William D. Rehm has been appointed general operations mgr. of Click & Geddes Lumber Co.. Denver, Co., according to L.D. Click, pres.

George Schmidbauer, Schmidbauer Lumber Co., Eureka, Ca., recently visited So. Ca, on business.

Bob Britt, Britt Lumber Co., Arcata, Ca., is back in his office after a So. Ca. visit.

Ted Gilbert, Product Sales Co., Santa Ana, Ca., and his wife, Rosemary, were joined for a week's vacation in Baja California, Mexico, by Willard and Glenys Simmons, Louisiana-Pacific, Ukiah, Ca., and Ray and Kathie Louvier, Trimco, Inc., Santa Ana, Ca.

(Please turn to page 56)

Poxy Coat, an oulslanding protective (-oaling, is useci ort roofs to seal nail holes, ancl provicle a seamless one piece surfac--r: that aclually expands and contracts wilh weather changes. Guaranleecl for lO years, it reflects heat and lo',vers interior temperatures by ts-zgo

Outer Space

We're so impressed with this revolutionary product we have become a Poxy Coat dealer We can now offer this excellent product to you for all your interior and exterior coating and surfacing needs. Call today.

The outer edges of business property are too often wasted space.

Yet our building experience can help you utilize that outer space in your business that presently lies idle or uncler utilized.

The builcling shown here is part of several storage units we built for Ganahl Lumber Co. in Anaheim, Ca. These structures, t-recause they were

built on the property line for better utilization of space, had to have one hour fire walls to comply with the city's fire code requirements.

We were able to meet their individual needs as we

have been meeting the needs of our customers for years: with top notch quality, unsurpassed service and reasonable prices. Our customers rely on us time after time.

Mike Esposito, mgr.

f leadquarters:

l2ao Unit F-l

west Lamberl Rd. Brea, Ca. 92621

(213) 694-a361

(714, -r29-779O

Rranc-h:

P.O. tlox a37

\\'illiams, Ca. 959a7

(916) 473-53aI

PERSONALS

(Continued from page 54)

Bill Wojtech has retired as pres. of K&S Marketing, Portland, Or.

John A. Buchanan has joined Sumwood, Inc., Palos Verdes Peninsula, Ca., as local sales mgr., also overseeing the co.'s Long Beach, Ca., dry shed oPerations and their inventory in Vancouver, Wa.

Rod Kautz is now in sales at North Bay Forest Products, Inc., Healdsburg, Ca.

Al Privette is the new sales mgr. at Jasper Wood Treating Co., Eugene, Or., according to Bob McBride.

Paul Robbins and Dennis Jasmer €ue new to sales at Brazier Forest Industries, Tacoma, Wa.

Tom Nielsen is the new purchasing agent for The Structure GrouP Northwest Inc., Newark, Ca.

Vernon W. Furrow. retired chairman and a founder of Payless Cashways, Kansas City, Mo., and Max D. Knell, chairman of Ole's Horne Centers, Pasadena, Ca., have been named 1986 recipients of the Home Center Leadership Council's Pioneer Award.

Harvey G. Knell is now chairman of Grace Home Centers West. Sean I*e, exec. v.p., has been promoted to pres. and c.e.o.

Dennis Hammer, Hammermill Manufacturing Inc., Santa Fe Springs, Ca., and his wife, Maryann, enjoyed their first vacation in six years, visiting Rome, Italy, and the Alps.

Robert Hatcher, owner/pres., Eastern Hardware, Bell Gardens, Ca., has been elected pres. of the California Pacific Southwest Hardware Assocation. Andrcw Pagano, Pagano's Ace Hardware, Alameda, Ca., will serve as lst v.p. and Gordon Foster, Bakersfield Sandstone Brick Co., Bakersheld, Ca., as 2nd v.p. Directors include Michael Cole. H&H Home Center, Seaside, Ca.; Donald Dauwalder, Paul's Scottsdale Hardware, Scottsdale, Az.; Donald Bledsoe, Greenacres True Value Hardware. Bakersfield, Ca; Daniel Horgan, Commercial Hardware, Reno, Nv.; Robert Mohler, Ontario Lumber & Hardware, Ontario, Ca., and Lyle Schafer, Ace Hardware of Napa, Inc., Napa, Ca. The National Retail Hardware Association reps Eue Bill Griffin, Griffin Hardware, Santa Ana, Ca., and Sheldon I. London, Washington D.C. The advisory committee includes Griffin, Herbert Walten, Carlmont Ace Hardware, Belmont, Ca., and Ernest Lasell, Jr., L.M. Lasell Co., Inc., Martinez, Ca. Rich Blinkhorn is now handling sales for Roy 56"rtotr Lumber Co., Tompkinsville, Ky.

We offer both standard and custom sizes.

Mantels are manufactured in western hemlock and oak.

Harry A. Merlo, chairman and pres., Louisiana-Pacific Corp., Portland, Or., has been featured on a new PBS television series, "Prohles of Success."

Anna Dalc Williamson of Fallow Forest Products, Lake Oswego, Ca., and national pres. of the Hoo-Hoo-Ettes, is back from visiting local clubs in Eureka, Ukiah, Red Bluff, Redding, Sacramento and San Francisco, Ca.

Mark Christensen, J.E. Higgins Lumber, Sacramento, Ca., has been elected pres. of the city's Hoo-Hoo club. Scott Watson is now vicegerent snark; Rick Warner, lst v.p.; Tom Overbeck, 2nd v.p., and Jerry Rinard, director.

Richard F. Krug has been appointed group v.p., hardware/industrial divs. of the Stanley Works, New Britain, Ct', replacing the late Edmund M. Butler. Robert G. Widham has been named group v.p., hand tools div.

Jim Schorsch has been named sales engineer for the KorPine div. of Willamette Industries, Portland, Or.

John Souza has joined inside sales at J. H. Blevins Sawmills, Inc., Napa, Ca., according to Rick Rosa. Steve Shudoma is now handling outside sales in the Los Angeles area.

Jim Golding, Golding Sullivan Lumber Sales, Westminster, Ca., and his family have been in Moscow and Leningrad on a vacation.

Barry Wood has been named mgr. of Orchard Supply Hardware, Millbrae, Ca. Craig Wad will manage the Redwood City, Ca., store.

Keith Ward is now mgr. of National Lumber, Encinitas, Ca.

Gary Bailey has been appointed marketing mgr. of Anaheim Manufacturing, Anaheim, Ca., according to Tom Dugan, pres.

Stephen X. Jackson, Georgia-Pacific Corp., Atlanta Ga., has been named chairman of the American Wood Council at its annual meeting in Portland, Or. Wayne Ratliff, Kirby Forest Industries, Houston, Tx., is treasurer; W. M. Robson, Canadian Forest Industries Council, vice chairman for Canadian affairs, and Carl E. Darrow, pres. and sec,

Joan Walthoff has been appointed mgr. of Handyman Home Center in Fair Oaks, Ca. Roy Harbit is asst. mgr.

John Relyea is now mgr. of 84 Lumber Co., Richland, Wa.

Jim Golding, Golding Sullivan Lumber Sa]es, Westminster, Ca., has been elected pres. of the Los Angeles HooHoo club, succeeding Bill Sullivan, Golding Sullivan Lumber Sales. Dave Buf6, Mesa Forest Products, Costa Mesa, Ca,, is now lst v.p., and Richard Miller, Fremont Forest Products, Whittier, Ca., 2nd v.p., and Rodger Morris, Louisiana-Pacific, Corona, Ca., sec./treas. The new board members are: Henry Voorhees, J. H. Baxter Inc., Long Beach, Ca., and Rod Kautz, South Bay Forest Products, Orange, Ca. Continuing board members are Jim Cates, Jay Orendorff, Jim Moss, Louie Escobedo and Bill Sullivan.

Manuel Laybor has joined the yard crew at Mungus-Fungus Forest Products, Climax, Nv., report Hugh Mungus and Freddy Fungus.

Hardwood Groups lulerge

The Hardwood Research Council has agreed to merge with the National Hardwood Lumber Association effective Jan. l, 1986, according to NHLA president E. R. Thomas, Jr.

After two years of consideration and planning, the HRC board voted unanimously Nov. 15 to become the Hardwood Research Council Committee of the NHLA, following a unanimous vote by the NHLA board on Oct. 21.

Current HRC executive director Thomas F. Mclintock will retire.

HRC president Wendell M. Cramer, W. M. Cramer LumberCo., Hickory, N.C. and an NHLA director, will continue to lead the group as committee chairman.

SEQUOIA SUPPLY

PLW\IOOD PANELS, INC.

Light Birch

3.0M-Print-Lauan

s6.50 per panet

75 pc. to a unit

STATES INDUSTRIES

Wisconsin Birch 1/+'- Real Wood

Y.95 per panel

25 pc.to a unit

. Ofler good on otderc placed lor immediate delivery now thru January 10,1986

ORANGE, Ca. (714) 974-2330

FAIRFIELD, Ca. (707) 864-1711

PHOENIX, Az.

(602) 254-6311

SAN FRANCISCO, Ca. (415) 826-2411

WILSONVILLE, Or. (503) 682-2822

TACOMA, Wa. (206) 582-e500

NEW PRODUGTS and selected

sales aids

Calculated Measurements

A new handheld calculator from Calculated Industries adds, subtracts, multiplies and divides directly in feet, inches and fractions of an inch.

The product fully displays feet-inchfraction dimensions on the LCD readout and allows for fractional entries in almost any formathalves, quarters, eighths, sixteenths, thirty-seconds and sixty-fourthsincluding mixed-base operations.

It also performs direct, one-button conversion between feet-inch-fractions, decimal feet, yards, meters and inches, and accommodates square and cubic measurements in any format. The calculator also features built-in solutions for board feet and rise-runslope.

Pressure Treated Fumiture

Outdoor furniture from Woods of America, Inc., is produced of Wolmanized pressure treated lumber and can be assembled in minutes.

The collection includes arm chairs, dining and coffee tables, a loveseat, an adjustable chaise lounge and a freestanding garden swing built for two.

It is guaranteed to resist rot, decay, insects and fungus for 30 years. It comes in a choice of driftwood, gray, rosewood or unfinishec.

Fireplace Doors

A new line of air-tight fireplace doors has been introduced by Nordic.

The doors and the faceplate are sealed with special insulation material to prevent air leakage. They also feature a special ceramic glass that gives excellent visibility of the fire, yet reportedly is not affected by heat or cold and lasts longer than standard tempered glass.

The doors have an adjustable air intake vent to regulate burning. The air intake can be shut off to put out the fire.

They come in six sizes designed as replacements for standard fireplace doors. The wooden handles reportedly absorb less heat and are easy to handle.

House Detective

A tamper proof and easily installed burglar alarm system with transducers to protect four separate areas of entry is new from Intromark Inc.

Equipped with solid state circuitry which detects any solid objects forcing the protected area, the detector produces a siren sound that can be heard up to one quartermile away. The transducers also are said to be highly sensitive to sounds such as forcing thetumblers of a lock.

BlindAnchoringTool

A new tool that sets hollow wall anchors without drilling pilot holes has been introduced by Black & Decker.

The wall anchor tool comes in a kit complete with four extra short, four short and four long wall anchors, two C-hooks, two O-hooks and two L-hooks.

The all-steel tool is designed for blind anchoring where only one surface is accessible. For hanging pictures, lamps or plants, it comes with a full two-year home use warranty.

FastStripAct

An improved version of a fast-stripping release liner for pressure-sensitive, vapor barrier insulation tapes has been developed by Compac Corp.

With a "serrated score" release liner for easier stripping, Quik-Strip II dramatically cuts down installation time when sealing joints in facings and pipe jacketing.

Powered by a standard nine volt battery,the system'sall electroniccomponents are fail-safe. Environmental vibrations and sounds will not trigger the alarm. The system also compensates for temperature/humidity changes.

GutterScreen

Heavy-duty aluminum gutter screens to prevent build-up of leaves, loose branches and other debris that commonly clog down spouts and gutters are new from Intromark, Inc.

The guards allow water to flow unobstructed through the gutter system and eliminate time consuming and often hazardous gutter cleaning.

Rustproof, 22-gauge screen panels are inserted under the roof shingles, secured over the outer edge of the gutter and screwed in place. Designed to fit all standard residential gutters, they are available in a wide range of colors.

Long &Winding Climb

Five ft. and six ft. diameter metal spiral stairs from Logan now have four baluster rods per stair for added style, safety and strength.

The stairs are easy to install and save floor space. Reversible stair treads allow right or left-handed entry.

All Logan 4 ft., 5 ft., and 6 ft. diameter spiral stairs are easily assembled from stock components for fast installations at low cost.

CloseQuarters Drill

The reach of any standard l/4" or 3/8" electric hand drill can be increased by 12", 18" or 24" with an extension from the McGregor Manufacturing Co.

Drill-X-Tend allows holes to be drilled in tight areas where conventional or right angle drills cannot reach or be handled.

It consists of a permanently attached drill chuck which is driven by a chain sprocket. Sprockets and chain are housed in an aluminum casing.

For polishing and grinding in close quarters, a buffing wheel or grinding stone may be attached to the drill chuck.

Driveway Pothole Filler

A ready-to-use chuckhole patching compound which packs down to extreme density and will not pop out under heavy traffic or temperature change is new from Randustrial Corp.

The product is designed for use in all weather conditions.

Two Doors In One

A hinged patio door system with a removable astragal to allow use of its full 6 ft. opening is new from Pease Industries, Inc.

The Homestead patio door's adjustable frame system allows for better fitting installation and provides the same security as single door installations. The hinged door system has a fixed sill, is fully weatherstripped, features 1/2" insulating glass and offers a screen for natural ventilation.

Water-Resistant Back Board

Tile backer board which combines the installation ease and convenience of drywall systems with the long-term durability and water-resistance of portland cement is new from Durock. Excellent for use in walls in high moisture areas such as around the tub, shower or laundry room, it provides a long-lasting base for ceramic and quarry tile, lugged tile, gauged slate, thin marble and thin brick.

For more information on New Products write The Merchant Mogozine,4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.

Please mention issue date and page number so we can process your request faster! Many thanksl

The product is Ul-approved for use as a floor protector and wall shield for solid fuel and wood-burning stoves. Available in3' x4,' 5 'or 6'lengths, it can be installed with either nails or drywall screws.

Kitchen Efficiency

Cabinet organizers to maximize space while putting everything within fingertip reach are new from Keije.

Crafted of vinyl-coated wire in European design, they can be installed with a screwdriver.

Slide-out trolleys are mounted on precision slides for easy movement. Lazy Susan models, which can create usable space in corners, three-drawer units, spice and towel racks, and a trash bag model are available.

Enclosing Time

New custom porch and patio screens by Starrco allow porches and patios to be added or existing ones to be enclosed. Made of heavy duty electrostatically painted aluminum members and all-aluminum screens, they are easily sized to exact specifications. Members come in 8' lengths and are bronze in color. Screens are charcoal gray.

ItGrows InTheCloset

An adjustable closet rod said to provide greater cross-sectional strength than traditional welded-seam tubing is available from Stanley Hardware. The rod is prefinished in bright zinc to provide total corrosion protection, inside and out. The end brackets are double staked to eliminate initial sag and provide greater pull-away protection.

Six size ranges are available.

Operation Mop Up

A high-grade polyethylene mop wringer bucket that won't crack or rust is available from Kelley Manufacturing Co.

Two wooden mop rollers are mounted on an extra thick top trim. The lightweight oval pail has a 14 qt. capacity and won't corrode or mar floors.

The bucket also has a strong steel bail handle.

Refinishing Touches

Woodrich Furniture Refurbisher is said to be an old world recipe of all natural oils and solvents, containing no damaging petroleum distilates, oxides, alkalines, silicones or waxes.

It can be used as a prefinish or on finished woods to penetrate the wood's pores to restore, enhance or protect the wood's natural beauty.

RollerCrating

A new addition to their line of roller carts for carrying bulky loads has been announced by the Kelley Manufacturing Co.

The High Roller KH-14 has a 14 cu. ft. capacity, a cuugo capacity of up to 300 lbs., and large 20-in. diameter semi-pneumatic puncture proof tires.

Contents can be dumped by sliding up the removable front panel and tilting the cart. The carts have weatherproofed wood panels and come in ready-to-assemble kits.

ffiT@

Welcome Light lsOn

Outdoor low voltage lighting which eliminates the physical danger associated with coming home at night to dark steps, sidewalks and alleys is new from Intermatic, Inc.

Malibu "Welcome Home" lights feature a plug-in power pack with a photo control that automatically switches the light on at dusk and off at dawn.

Featuring attractive contemporary styling, it requires only a 12 volt current and is shockless and safe to use around children or pets. It is said to

cost less than a penny to operate for ten hours.

The unit includes the power pack and 15 feet of low voltaee cable.

CoalDigger

A coal-ash separator from Enermiz can be used to remove ashes from a wood stove, fireplace or barbeque while leaving hot coals to burn.

The separator features sturdy metal construction and an easy-tohold wooden handle which insulates the hand from heat.

Stucco'em Up

A new compound for making repairs to stucco reportedly has stronger adhesive qualities and more elasticity due to secret fibrous ingredients.

Painter's Patch Stucco Repair from Expo Industries is mixed with water. It can be used for large or small repairs.

The product is packaged in 50, 20 and 5 lb. sizes for wholesale customers and in I and 5 lb. boxes for the retail trade.

Temporarily Tacky

A paint bonding deglosser which creates a temporary tack in old finishes to make new finishes bond firmly, preventing flaking and peeling of top coats, is new from KleanStrip.

The preparation also helps prepare furniture for faster and easier antiquing by quickly removing wax, grease and polish. In addition, it is said to clean and remove blemishes from floors, walls and unfinished wood.

The preparation is recommended for oil, water, acrylic and latex paints or varnish.

Wood Restoration Filler

A new wood filler from Minwax repairs, restores or rebuilds virtually any wood item in and around the home, including major jobs like rebuilding rotted window sills.

The product hardens in 15 minutes and is ready to be surface coated in under half an hour. It can be sanded, planed, carved, painted or stained. Moving with the natural expansion and contraction of the wood. it reportedly won't crack, shrink, split or fall out.

The product's two-component system allows consumers to mix only as much as they need for a particular job and save the rest for future projects.

PACIFIC FOREST PRODT]CTS, /JvC,

REDWOOD . D.F. Timbers

Direct and LCL shipments

Pine r Douglas Fir

P.O. Box 1644, Fresno, Ca.93717 r

TED MATHEWS

Washing Over Drying

A stackable washer and dryer line which provides large capacity and economical operation while saving space is new from Frigidaire. The 27-in. wide units can also be installed side by side, separately or

under a counter. Easy-to-read frontmounted controls are located above the door of each unit.

The washer features a Water Miser control which saves water by matching the water level to the load. And an automatic lint control ejects lint during wash and rinse,/spin cycles, eliminating the need f or a filter.Dryer models, electric or gas, have four temperature settings and three separate drying cycles.

NewWood Preservative

A temporary wood preservative to dip or spray on freshly cut sawmill lumber to protect it during shipment and storage and give it a bright, attractive appearance is new from Koppers Co., Inc.

For more information on New Products write The Merchant Mogazine,4500 Campus Dr.. Suite 480, Newport Beach, Ca 92660. Please mention issue date and page number so we can process your request {asterl Many thanksl

Depending on conditions, the treated wood will resist attack from sapstain, fungus and mildew for several years. It is not recommended as a substitute for preservative by pressuretreatment, but it is a less expensive method than kiln dryrng.

The treated lumber has no chemical odor, color or greasy film. It can be finished like untreated wood.

Containing no pentachlorophenol, the preservative's ingredients include a quaternary ammonium compound used widely in hospitals as a germicide.

PGL

BlackTopper

A driveway sealant applicator is available from D.T. Home Tech Corp. A3-l/2 gallon hopper which stores and dispenses the sealer is mounted on a pair of wheels. Beneath the hopper is aA" widebrush and a 20 " squeegee to

A Bit Better

Center punching and drill walking are reportedly eliminated by split point drill bits from Vermont American Tool Co.

spread the sealant uniformly. The whole unit is attached to a tubular steel handle with a trigger control at the end of the handle.

The applicator can be cleaned by spraying it with a garden hose.

PortableWarmth

Disposable, portable hand and body warmers in the form of handy heat pouches are new from EJW North America.

They generate heat by being removed from a plastic protective bag, exposed to the air and manipulated for two minutes until their temperature reaches a safe, average l4O0 warmth. Each pouch is 4" wide by 6 " long, and weighs less than 3 oz. and provides 20 hours of warmth.

They can also be used to overcome discomforts of minor muscle or joint aches or stiffness. The product has a two-year shelf life.

The special-alloy, high speed steel bits are designed to cut faster with less feed pressure. The mechanic's length bit can be used to drill through woods, plastics, copper, brass, cast iron, untempered steel, aluminum, bronze and die castings.

To ourvalued suppliers, Happy Holidays and Season's Greetings from all of us at Fullmer Lumber. We thank you for your support throughout the year.

SquaringOff At Home

A new squzue from Swanson Tool Co. is a five-in-one tool for roof framing, stairway building and other do-ityourself home repair or hobby projects.

The Big-12 square combines a rafterlframing square, stairway gauge & crooked corner guide, protractor & mitre saw guide, tri-square and layout scriber in one compact tool.

It also includes a unique layout bar that adjusts for measuring crooked corners. The bar is easily removed for standard square use.

Constructed of 3/16' thick aluminum, the tool measures 12"x12"x17".

is the PROFESSI0NA['S ALt PURP0SE PIASTIC

Boat builders, furniture makers, cabinet makers, etc. haie found it the one sure answer to correcting wood defects, filling wood cracks, gouges, covering countersunl nails and screws. -

'l \rrul ( )!i,ilrut .\il! ( )lt 1r11g1 -+' \ll \ rir \

.l.iil(liurl .1r",i.tl,,rr .rl f'r,. Iltir. in trrr t)lrlllrr)rl, j5 11 111!111I)llsglllitli()ll ()1 \l ll \

irit. i irr iririi i)cl!!Lri.l!! rilj i!iujrLr.Lr .ii

llll( l( lll. \!'!11()!l \ I lrl\ + | llil\ l{r (ll)

\\rllr !l{1(l! .lllrl l[)l rl]!,1'tlJ!lll('lll

Itlt,rlL'lrr \lr \l.KrlnL'r nl.-ltl \\ilttl r(i

irrir[! ir rf\l\i()ll il] lli' rleri lLIliilc.

\\ r .Lrr rtrtitr.lr-! .r iirrl(, r,l r.rlir tritiuir

llrlalrd ll. .lolttrsrttt

l;e,,,,,, \ ,.. i',..'.l.i,i

ft.ilrk l)'i\l()rl I ttttlllcl (()lllIiil)\

P(). IJirr lllf. lirt \\irrtlr. I\.16l0l

l'.S. Il \lr. \le Kirtrter rL'\i\.l\ lll. itbr)\!

l()R I lll RI ( oRI)

itriltr: tltc \l()f\ ()l ()Lll IllitlelltLl 1!) \r)lll relttlittg irtitlicriet. \\ t kltLrrr llllLl llllltlritrrrtl . , lill,.i,.,,i i,,",1 , .r\ .,,1 '\1,.', rlr'ltlittr rrillt,rttT l-.tLrrittil' Iltt'tt L' ll(i \tlil\li

,.r, ,., t', ',, 1,, ,r ril jl1rtrr 1rr11' t11q'r

Ilrrt \a\elll lilutg\ e()llr'cllt tttt ltt lclrreit!! t() (,li,qc \l.Kilrrlet'\ lllti!lc "H()\\ l() (ict ..\ll thc HltltluoLrtl \ {)Ll l)ll\ I ot " t ltte]t lt||c lr.!-d 1lt \ ()ll1 ( )!l()lrcl l9fi5 i':Lrc. I lrcrc iltrtrlrc irLrtll tttlieetttllttas alt(l itililLlrlf (rl llla \\lilcr it\ ta\elLle(l h\ lltt lOIlf ()l I lle '1()l \ litc tttLttr lu('eit\\ lo cli:.tL:: lIll(l c()r-

:'.. : I.I .,..1 '':t 1.11.'illalll

,il.i ,, lrL 1,,,.ri.1 i,,,,i i.ill'' .,1 lllt ltllltlrt;.

' ';t,',l,t i| r \ rr'r (,\r'ri rll.l illrlrrlr'l

I irr,-ttu,,'ttt \lll'\ rLlie lr(\()l (l)lryt' I I \.ri\'. ( ,'.1. . \'l l' \ \.. 't .rl.

.iillr'rent trortl \ll. \liKtrtrter'\ sllllcll)clll itl tlItt tilt !t)llll)tltilli()ll itltltltles ll()l ()l]l\ 1,,,,i,,,, lri,i .11',, llr, .,r,r,lL ,rl 1lr( llllllirr'1 \\rlll llIl)l(lllni:tle lrl l!lrl. I lll\ l\ lllln()llitlll lr,' rr.., rlr"-11I, 'lil l,'r1,11 " i11 rtrtr!rr'\ \ itltt,'1. L.r)il\t(jt't!'(l l() ira it l(il\()llillrl(' \lllillll()ll lll llte lurl!lllclll. (11 l\\() !(llllIelelll lll:l)cclol\ in -ur lLiiing Ilte lLttttber \\illl \\)lIlc llLralcls bc ilrr: Lr1.gliirlcti it]d \i)llla titl$tlgtltclctl itl t]lc \e!()lt(l lt1\Pcell()ll. I hc ltltllauct lllca\LllL-Ll br'lrippi rrg rttttl t eccjr itr.g ilts|cel ot s :ltotllcl e()nlc Vcr\ el()\c l() bcirlg itlelrri.lrl. Itlii\llc

1 | (r 1, sipec llfit\Ltf!-1ta1l itl()pC i\ lar gClt li nlcclrirnielll l)r r)rc\\ altd tllc iLrclltltcrrt tieii'

sions necessary for grading are not involved.

My perception of the attitude of the writer is subjective and therefore is somewhat harder to deal with. I frankly feel that repeated useofbeing "cheated" bythe "shady dealers" puts a negative tone on the story that is entirely unwarranted and is not overcome by the disclaimers to the contrary at the beginning and end of the article. I would suggest to you that the way to deal with someone who you think is cheating you is to buy your lumber from a reputable firmand there are plenty of themrather than by trying to beat someone at his own game by measuring boards with a 40" lumber rule and registering complaints when you're more than 590 short in footage. I would further suggest that it would have been much more constructive to title the article "Unraveling Some Mysteries in Receiving Hardwood Lumber" and develop in a more positive fashion.

As indicated above. we know that our hardwood products and our business customs vary substantially from the softwood industry with which many of your readers are involved. Many reputable hardwood firms would welcome the opportunity to better acquaint others with the world of hardwood.

This association counts as one of its major purposes the education of those inside

and outside of our industry. We are not in a position to arbitrate claims, but we will be most happy to supply information when requested, Under certain circumstances, we might well be available to present programs to industry groups. In short, we want to do everything reasonable to foster understanding and to encourage the use ofhardwoods.

Please call on us.

S. Carroll White Executive Manager National Hardwood Lumber Association Memphis, Tn.

EDITORIAL ON TARGET

I thoroughly enjoyed the special issue (Oct. 1985) devoted to the hardwood industry.

The issue contains several good articles that would be of interest to anyone connected with the U.S. hardwood industry. I certainly agree with your editorial message.

Stevcn V. Losser Executive Director National Dimension Manufacturers Association Marietta, Ga.

gulnlUlnlpanlaLumbp,r

Pine Redwood Cedar

Hem-Fir

Hemlock

Douglas Fir

GREEN or DRY o DIRECT MILL

SHIPMENTS o LCL r CARGO o

RAIL o TRUCK & TRAILER o

PRESSURE TREATED LUMBER

ANTI FUNGUS CAMPAIGN

Freddie & Hugh are a fungus amungus that AIDS noneofus. Before it ruinus, can't you get them into Chapter I I or better still absorbed bv sumofus with a new name?

The fun is gone.

David Crisp Dallas, Tx.75225

A new name for Mungus-Fungus Forest Products? Rodical, man.ed.

FUNGUS FOLLOWER

I have always been amused at comments about Mungus-Fungus Forest Products. Do they happen to have a salesman on staff by name of Board Stiff or Hard Board? By the way, I retired from Vis-Rey Inc. on November 15, 1985.

John Baird

Vis-Rey Inc.

Spanaway, Wa. 98387

REDWOOD. CEDAR

DOUCLAS FIR . HEM-FIR

PINE COMMONS o PLYWOOD SIDINCS

TREATED STOCK

MASONITE BRAND SIDINC

PLYWOOD SHEATHINC

Pii€ctMill T&T CarLoads or LCL from our distribution yard 1286 North Broadway Stockton, Ca. 95208

{2O9} 946-0282

fohn Diidedch - fudy Murphy

Lee Turner - Cordon Roby - Matt Stanley Orville Chedester

Home Center Show Headliners

A line-up of speakers to meet the specialized needs of home center and do-it-yourself retailers, their wholesalers and suppliers has been engaged for the 1986 National Home Center Show, March 9-12, at McCormick Place, Chicago, Il.

"We are pleased to mark the beginning of the show's second decade of service to the home center industry by providing an extensive array of major speakers, who can help show attendees keep pace with our expanding, competitive industry," John Berry, director of the trade show division of Vance Publishing Corp., show sponsor, said.

Jim Pence, a specialist in smallbusiness financial management, per-

DR. REASER

(Continued from page l6 )

decline in the dollar's exchange rate will lead to higher inflation. Much of the effect may not come until 1987. By the end of 1986, we expect consumer prices to be about 5 9o above their year-

sonnel development, sales and marketing training and compensation,/incentive programs, will be the first speaker on Sunday afternoon, March 9.

Jack Trout, president of Trout & Ries Advertising, New York, is scheduled for Monday morning. Wally Lynch, president of Builders Express, Inc., Dallas, Tx., a columnist for this magazine and a leading specialist in helping companies reduce their delivery costs, will be the afternoon speaker.

Roger Blackwell, professor of marketing at Ohio State University, will open the Tuesday session. Frank Abagnale, described as "the greatest con artist of all time, who has gone straight," and Jack Henry, nationally-

earlier level, compared with an inflation rate of 3.590 in 1985. The rise and fall of inflation has carried both costs and benefits for the housing and home center market. Rapid inflation encompassed sharp increases in the prices of building materials and also led to large increases in home values. It also pushed interest rates to record highs.

TIMBERS

known loss-prevention specialist, will be the Wednesday morning speakers, talking on loss prevention and inventory shrinkage.

Plains Adds 3rd Store

Plains Lumber & Supply Co. has purchased the assets of Kerm-Rima Home Center in Costa Mesa, Ca. With stores in Garden Grove and Huntington Beach, Ca., the company plans to expand a full building material department in the 26,000 sq. ft. building with adjacent nursery. Plains is run by Donald G. Eyer and his daughters, Deanne Finck and Karen Tompkins.

We expect interest rates to trend upward in 1986 as a result of faster economic growth, concerns about rapid monetary expansion, and rising credit demands. The Federal Reserve may try to temper the rise in rates in order to hold down the foreign exchange value of the dollar, but the monetary authorities cannot control interest rate levels. We expect mortgage rates on 3O-year fixed rate loans to rise to about l39o by the end of 1986, levels still much below their last peaks of close to l59o in 1984.

In response to this trend of interest rates, we expect new housing starts to peak in the first few months of 1986 and then move gradually lower. For 1986 as a whole, we forecast housing starts of 1.68 million units, off about 40/o from the estimated level of 1985. The housing supply and home center market should benefit from the construction of homes started in both 1985 and 1986, as well as a significant amount of remodeling of existing homes.

From cutting a wedge to pre-fab'd crane pads or mine shafts. Angle cut, cross cut, drilling, dapping-t$(ze'll do them all to customer specification.

QUICK QUOTES

(Continued from page 28)

"Marine cargo through the Port of Seattle will nearly double by the year 2000 despite several lean years ahead."

James Dwyer Executive Director Port of Seattle

Seattle, Wa.

"The economy will grow at a 50/o to 6go annual pace in the fourth quarter, and do well throughout next year.,'

Beryl Sprinkel Chief Economist

Reagan Administration

"We think across 1986, even with a ho-hum economy, you will have substantially improving profits from a gradually falling dollar, somewhat stronger real growth and a slight pickup in price-cost margins."

Donald Straszheim

President

Merrill Lynch Economics Inc.

"Housing will continue to be a mainstay in California's economy over the course of the next two vears."

Economics Group

Security Pacific Bank

Los Angeles, Ca.

NEWEST HOM ECLUB, the fast-growing Fullerton, Ca. -based chai n of discount i_ome improvement centers, opened Sept. 2g in Fresno, Ca. The 100,000 sq. ft. warehouse offers building maierials for every aspect of home improvement and includes a 10,300 sq. ft. nursery. Dave Martin will manage the new unit.

Bill Walker o Dave Simmons Jim Joseph Phillip Graue o Dale Grabe Larry Grabe Larry Butler . Bob Witts r Bob Dunlap

North American Wholesalers' Regional Meetings

A r ITS series of regional meet- Iilgs held across the country each fall, the North American Wholesale Lumber Association presents its forecast of next year's business conditions.

At the meeting shown here, held at the Balboa Bay Club, Newport Beach, Ca., NAWLA executive v.p. H.M. "Pete" Niebling ventured that housing starts next year would be 1,620,000, slightly off the average 1.7 million during the 1970-1979 period. He foresees a housing mix favoring singles over multiples, adequate financing, better F.O.B. mill prices and a continuation of the current intensity of competition.

He told the meeting that industry problems in 1986 would include direct selling by manufacturers, transportation ("either be in it or be out of it"), increased operating costs and high insurance rates. Niebling stressed the importance of increasing productivity at the wholesale level. Interest rates will

(Please turn to page 74)

"LOOKINGAROUND"says Paul Bunyan

Paul does not rest on his fame as the lumberman's symbol of accomplishment. New requirements and changrng conditions keep him alen to progress.

PoNDERING the lumber market were (1) Dale Bacon, Ted Pollard, Sam Witzel, and NAWLA's Pete Niebling. (2) Wayne Gardner, Gary Schlossberg, John Weston. (3) Lynn Walker, Frank Velez, John Weston. (4) Bill Gunnell,

Jerry McGuire. (5) Blaine Smith, Bill Sullivan, Frank lvanovich. (6) Vince Cunningham, Ted Gilbert, Ed Founlain, Jr. (7) Roger Braniger, Pete Speek, Jim Frodsham, John Newquist. (8) Jon & Harlan Friesen. (9)John Mazanel, Miguel

Hernandez. (10) Frank Penberthy, Jack Finnegan. (11) Al Bufkin, Frank Bader, Jim Newquist. (12) Andy Ersek, Scott Watson.

Buyers Seek the Undervalued

Merger and acquisition activity among smaller to mid-size privatelyheld companies is at record levels because experienced corporate buyers are taking advantage ofthe knowledge that many of these acquisition targets are undervalued.

"Not since the late 1960 s has there been such a high level of buyer interest in middle market companies with revenues from $l million to $50 million," said Gary Roelke, Geneva Business Services, a merger and acquisition firm. "Most sophisticated buyers know that these business owners don't have an accurate picture of the true worth of their companies.

"That's why we are forecasting that 12,500 middle market businesses will change hands in the coming l2 months. The average private business owner may sell a business once in a lifetime, but he's usually overmatched when dealing with a sophisticated buyer who may be buying as many as six companies annually," Roelke added.

Sellers need to understand that the buyers are seeking return on invest-

ment levels better than they can get from passive, risk-free investments, according to Roelke. "In addition, buyers expect to see growth potential and synergy possibilities when evaluating acquisition candidates," he stated.

In addition to exploiting the awareness that a company is undervalued, Roelke cited l0 of the leading motives for mergers:

(1) Achieve growth more rapidly than by internal effort.

(2) Satisfy market demand for added products or services.

(3) Avoid risks of internal start-ups or expansion.

(4) Increase per share earnings.

(5) Reduced dependence on a single product or service.

(6) Acquire market share or position.

(7) Offset seasonal or cyclical fluctuations in present business.

(E) Increase utilization of present resources, such as physical plant or personnel.

(9) Acquire outstanding management or technical personnel.

(10) Open new markets for present products or services.

NAWLA REGIONAL

(Continued from page 72)

stay essentially the same, he said.

Gary Schlossberg, senior economist with Wells Fargo Bank, San Francisco, Ca. prophesied that 1986 will be about like 1985, suffering only mild inflation, that California will outperform the rest of the country, that consumer spending will continue at a vigorous level and that interest rates will increase slightly then retreat as part of a general downward trend in rates. The western economy will continue to benefit from the growing strength of Pacific Rim business.

The economist said that he sees concrete action on protectionism as the only likely area of Congressional action. He does not expect the nation's lawmakers to make meaningful progress in either tax reform or deficit reduction.

NAWLA vice president John Weston, Far West Fir Sales, also spoke briefly to the meeting on association affairs. Chairman for the October 16 event was Ted Gilbert, Product Sales Company.

ls southern oak as good as northern?

This is the second of a mini-series on oak written by Gage McKinney, a contributing editor who has considerable knowledge of hardwoods-ed.

EO* ivtANY years iumberpeople

I have tended to unjustly classify the southern red oaks as inferior to the northern. Actually some of the southern species cannot be surpassed for workability and beauty, although the precise location where a stand of timber grows plays a crucial role in the quality of the lumber. The true southern red oak (Quercus falcata) growing upon rolling hillsides, yields excellent lumber. Cherrybark red oak (Quercus falcata var. pagodadfofta), for another example, yields a bright-pink, eventextured lumber of the best quality when grown upon the uplands of the Deep South.

Problems develop in red oak growing in the low country or swamps of the south. Swamp red oak yields hardtextured, difficult+o-dry, sometimes brashy lumber which is prone to splitting. Purple to brown mineral streaks mar its otherwise pinkish heartwood, and the sapwood often shows a distinct, dingy gray color. Such swamp oak weighs about 100 pounds per thousand board feet more than the

northern or Appalachian oaks, an indication of its harder texture. Furniture plants using high powered machinery and finishing their products with a dark stain often prefer this type of southern oak because it sells for less than the northern stock. But for the amateur craftsperson or custom woodworker, a small savings doesn't justify the purchase of hard, mineralstained lumber. Excessive splitting is a tell-tale sign of hard,lowland oak that consumers should recognize.

Usually consumers are anxious to know how to distinguish the red oaks, the most widely used American hardwood, from the white oaks. Color provides a rapid, although not always reliable, means of distinction. Red

Story at a Glance

Location crucial to characteris. tics of oak. .. some problems found in lumber originating in swamp areas.. ways to identi. fy different species.

oaks usually have a reddish tinge, especially near the knots. White oaks tend towards a grayish-brown tinge, although occasionally they also show a reddish cast. For more accurate identification, examine the pores of the wood along the end of a board. In white oak the pores are considerably larger in the wood formed during the spring, and decrease in size towards the summerwood. The large pores in the springwood of the white oak are usually plugged up with a frothlike growth called tyloses. Pores in the red oak, on the other hand, are open. Also, when seen through a hand lens the pores in the summerwood of the white oak will be too numerous to count, while red oak has far fewer pores in its summerwood.

Like the red oaks, one can distinguish the various species of white oak only under a microscope. Various regional names have been applied to the white oaks with the best known including white oak, bur oak, forked leafoak, post oak, cow oak, chestnut oak, chinkapin oak, swamp white oak, overcup oak and live oak. White oaks grow throughout southern Canada and the eastern United States, all the way south to the Gulf of Mexico, and as far west as Texas. Some commercial species of white oak growin California and Oregon, but these cannot compare to the Eastern species.

/r,\T?tl l.-lt-ilfL]Nlt!\UU Ul U EhlALi tutnlE

Looking Ahead To 1986

"lndustry Statistical Review & Forecast" is $50 from American Architectural Manufacturers Association. 2700 River Rd., Suite I18, Des Plaines, n. 60018.

Lead Ledger

Sheet lead as a roofing and flashing material is detailed in a free brochure from Lead Industries Association. 292 Madison Ave., New York, N.Y. 10017.

Patio & Terrace Doors

A catalog of patio and terrace doors is free from Marvin Windows, 8030 Cedar Ave. S. f228, Minneapolis, Mn. 55420.

Work The Wood

"Woodworking Tools, Materials, Processes," a 634-p. book with 1500 illustrations, is $21.50 plus $2 postage from American Technical Publishers. 12235 S. Laramie Ave., Alsip, Il. 60658.

New Foam Sealant

A new silicone foam penetration sealant is described in a free guide from General Electric Co., Silicone Products Div., Waterford. N.Y. 12188.

Moulding & Millwork Suppliers

The Wood Moulding & Millwork Producers Association's 1985 directory of products and services is $2.50 from WMMPA. P.O. Box 2527 8, Portland, Or. 97225.

Fire Retardant Treated Wood

Design values for Proifbx fire retardant treated lumber are available free from Hoover Tieated Wood Products. P.O. Box 746, Thomson, Ca. 308A or by calling l-8oGTEC-WOOD.

Electrical Box Information

Free information on convertible circuit breaker loadcenters is available from Challenger Electrical Equipment Corp., 508 Lapp Rd., Malvern, Pa. 19355.

For all New Literature offerings write directly to the name and address shown in each item. Please mention that you saw it in The Merchont Magazine. Many thanks!

Cabinet-Advice

"What You Should Know About Kitchens" is free from Excel Wood Products, One Excel Plaza, Lakewood, N.J. 08701.

On Line Lit

The fall,/winter 1985 edition of the "Computer Power Buyers Guide" is $29.95 from Wellspring Enterprises, 9921 Carmel Mountain Rd., Suite 188, San Diego, Ca.92129.

Side With Vinyl

"What Homeowners Want To Know About Solid Vinyl Siding" is free from Vinyl Siding Institute, 355 Lexington Ave., N.Y.. N.Y. lml7.

Window lnstallation

A l2-p. guide to window replacement is free from Caradco Corp., Dept. FFG, P.O. Box 306, Champaign, n. 61820.

Sticky Situations

"The Adhesive Answer Book" is free from H.B. Fuller Co., 315 S. Hicks Rd., Palatine, I1.60067.

Insulation Accessories

A fire-rated insulation products catalog is free from Manville Service Center, 160l 23rd St., Denver, Co. 80216

Behind the Doors

A 4-p. brochure on stile and rail wood doors is free from Minton Co., 59 W. Evelyn Ave., Mountain View, Ca.9042.

Wood On The lnside

"Real Wood Interiors: A Design Workbook" is free from Western Wood Products Association, 1500 Yeon Building, Portland, Or.97?X4.

Lift Truck Tire Guide

A lift truck tire warranty guide wall chart is free from Yale Materials Handling Corp., Dept. 513, P.O. Box 12936, Philadelphia, Pa. 19108.

Sand By Hand

A new packaged sandpaper catalog is free. from Carborundum Abrasives Co.. P.O. Box 350, Niagara Falls, N.Y. 14304.

Sales Program On Tape

"Sales Power," a new sales program of tape cassette and booklet , is $15 from H.E. Anderson Co., 3037 Kentwood Dr., Eugene, Or. W$1.

Southem Pine Dream Book

l2-p. idea book for outdoor projects is free from Southern Forest Products Association, P.O. Box 5268, New Orleans, La.70152.

See This For Cedar

The 1986 Western Red Cedar Lumber Association's "Where to Buy" guide is free from WRCLA, 1500 Yeon Building, Portland, Or.97?M.

Wood Machinery Guide

The 1986 Buyer's Guide & Drectory of Wood Machinery Manufacturers of America is free from the WMMA, l9m Arch St., Philadelphia, Pa. 19103.

Mail Order View

A free 72-p. catalog with over 5000 standard shapes and sizes ofwood windowsand patio doors is available from Marvin Windows, 8030 Cedar Ave. S., #228, Minneapolis, Mn. 55420.

]'UEILISHERS trcIREsT PRGIEIUtrTE;

Green Douglqs Fir

Dimension lumber, studs, timbens to 40'. Unitized

Sawmills located at Molalla, Tillamook, Toledo and Clackamas, Oregon, with shipping via SP, truck, ocean bange and for export.

Kiln Dried ]lemlock

post & beams, plank, and papen wnapped.

Some of our Specialties:

r Mixed specified loadings

o Long dimension #1 & better cuttings

cnoss & transmission arms

Cqll toll free (8OOl ,h7 -6673

GIASSNFIED

ADVERTISEMENTS

wholesale company looking for traders in west coast species, experience necessary. Must be selfstarter with customer following. Top compensation and benefit package. Send resume to Owen McKannay, Schaller Forest Products, Box N, Redding, Ca. 96099.

SALES: Wholesale lumber distributor is expanding existing sales staff and needs experienced self-motivator, aggressive and with following in So. Ca., to sell import and domestic hardwood plywoods, hardwood lumber and softwoods, plus cut-to-size. Excellent commission and benefits. Please call Jim Skay at Skibba Lumber, Inc., Orange, Ca. (714\ 99'7-l'1O4.

LUMBER TRADERS

Expanding So. Ca. wholesaler seeks two lumber traders to increase our market coverage. We will consider trainees if the candidates possess sales ability and are self starters. Inquire in strict confidence. Mesa Forest Products. P.O. Box zlOl I, Costa Mesa. Ca.92628.

U.S. Pllruood Corp. currently has two positions available for inside sales. The candidates we seek must have a background in selling building material products.

U.S. Plyrvood offers a salary commensurate with your experience and qualifications. For a chance to join our growing company send your resume to: U.S. Plywood, P.O. Box 1148, Tustin, Ca. 92680, Attn: Ron Alvey. E.O.E.

SALESPERSON WANTED

By wholesaler with remanufacturing plantat its Ukiah, Ca., office. Call Agwood Mill & Lumber ar ('707') 68-5486.

You will have a hard time finding better business Dartners than us.

YARD MANAGER

Retail lumber yard manager wanted for yard in Northern S.F. Bay area. Very active growth area. Must have contractor & retail sales experience. Excellent benefit package, salary negotiable. Send resume to Box 538 c/o The Merchant Masazine.

Twenty-five (25) words for $19. Each additional word 650. Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $5. Box numbers and special borders: $5 ea. Col. inch rate: $40. Names of advertisers using a box number cannot be released. Address replies to box number shown in ad in care of The Merchant Magazine, 45fi) Campus Dr., Suite 4t0, Newport Bcrch, Cr. 92660. Make checks payable to Th€ Mcrchrnt Magazine. Mail copy to above address or call (?14) 852-1990. Deadline for copy is the 22nd of the month' PAYMENT MUST AC' COMPANY COPY unless you have established credit with us.

MANAGERIAL POSITION. Wholesale distributor with mill operation seeking experienced individual. Responsibilities to include inventory control, order desk, lumber buying. Some production background desirable. Mail resume to International Forest Products, P.O. Box 786, Chino, Ca. 91708 Attn: Tom March. (714) 627-7301.

LUMBER TRADER, experienced in softwoods, boards and selects. Excellent opportunity for aggressive individual. Send resume, in strict confidence, to P.O. Box 23186, Portland, Or.97223.

SALES: Manufacturer and distributor of stile and rail doors and millwork is expanding operations into Bay Area of No. Ca. Looking for sharp, aggressive two-step sales people for both inside and outside sales position. Knowledge of market and products a must. Excellent opportunity for the right people. Send resume to Box 542, c/o The Merchant Magazine.

RfMINDER: Payment must accompany the copy you send in for classified ads. Just use the instructions above to figure the amount. Whenyou call in ads, we'll tell you the amount lhat must be sent for the ad.

Covers the market. Gets Results.

Building Products Digest takes your advertising message to retailers and wholesalers in the l3 Southern states: Texas, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, Florida, Georgia, Virginia, South Carolina, North Carolina, Kentucky, Tennessee.

QUAIITY plus VAIID equals theCOMPBTITM EDGE

3Of SIDING, DOUGLAS FIR or CEDAR - 5-ply, solid core, natural face defects. All standard patterns. 8' and 9'.

5-PLY STIIRD-I-FLOORSolid core panels 518" and Jl4" tongue and groove, full face.

O. 5-ply construction. Veneer face, back and center core.

S. OSn STURD-I-FLOORthe oriented strandboard for soli<l floor construction.

B. ApA TRADE MARKED spEclArry pRoDucrs oN REeuEsr

GTASSIFIED ADVEMTilSEMENTS LUMBERYARDS BOUGHT AND SOLD

Let Dick Phelps use his 30 years, experience as a lumberman to assist you JAMES R. GARY d Co. Ltd.

Realtors & Estate Agents

21747 Erwin St. Woodland Hills Ca. 91367

(8t8) 703{100

t Z\ California Lumber

I g L I Inspection Service

\l S/ CertifiedAgency

o\\,7

L.A. (714)e62-e994

s.J. (408) 297_8O71

Sacramento (916) 965-7 413

P.O. Box 6989, San Jose. Ca. 95150

LOCAL LUMBER hauling Southern California roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in LongBeach. 3C Trucking (213) 422-U26.

APPROXIMATELY I acre storage yard, alt fenced on S.P. San Bernardino, Riverside Ca. area. Milling on site. Write Box 541 c/o The Merchant Magazine.

RETAIL LUMBER YARD

UTAH LOCATION

Retail lumber yard located in large growing town in Utah. Well established business with sales volume over $6 million and still growing. Cood gross profit margin. Real estate has rail spur in yard. Manager willing to stay. For further information contact: Tom Harrison (801) 292-8481.

lfhen sending in a chonge of address please include zip code on both old and new oddrdsses and either the old label or the inf'ormation from it. Thanks!

TWISTED AND WEATHf,RED

Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Call Bill Hunter. Hunter Woodworks. (213) 't 7 5-2544"(2 I 3) 835-567 l.

REPRINTS of hardwood articles from The Merchant Magazine. Excellent for reference or training. Domestic Hardwoods, $10; Southeast Asian Hardwoods, $5; South American Hardwoods, $4; all three, $16. Send your check today including name and address to Hardwood Reprints c/o The Merchant Magazine, 4500 Campus Dr., suite 480, Newport Beach, Ca. 92660.

SINCE 1876YOUR COMPLETE GUIDE... lumbermens red [001r $erulce

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

A Red Book listing showsthe exact business name - complete address, includino

P.O. Box and ZIP CODE!concise description ol what the business does - special data such as location of purchasing deparlmontthe 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 accurate, because the man who assigned it is a speclalisl 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: $260.00 quarterly !; $520.00 semi-annually tr; $1,040.00 annually !. Please send more information, without obligation D.

SOUTHERI{ CALIFORilIA LOS AI'GELES AREA

SAl{ FRAI{GISCO BAY AREA

HMS Svstems CorD.

Eeaver Lumb€r Co.

Boroer & Co.

Calilornia Foresl Producls.........

Calilornia Lumber Insosclion Seryice

Calilornia Redwood Assn..........

Casella Transoonation

DMK Pacific CorD.

Doors. Inc.

Floor Service SuDolv (San Jos€)

Georoia-PaciticCdri.

Geor6ia-Pacific Corp. (San Jose)

Harn6ssTimberPrdducts..

Hiooins Lumber Co. (Monlerev)

Hi66ins Lumber co. lsan Josd)

Hi66ins Lumber c0. {Union Citv)

Hi66ins Lumber C0. {walnut Cieek)

Hifr?wood Lumber 00......

J.H.Bdxler&C0..

Louisrana-Pacific Corp

MacBeath Hardwood (Berkeley)

MacBeath Hardwood (San Francisco).

Pacitic Lumber Co.

Panel Clio

Redwood Inspection Servtce.

Rolando LumberCo., Inc.

Seouoia Suoolv (Fairfield)

Seduoia Subbl! {San Francisco)

Srfiioson Timber Co.

Southern Pacrftc

Trianole Lumber Co.

wendlino-Nalhan weverhatuserCo.... (408)297'9451

whiteBrothers.....

ilORTHER}I Al{D GEI{TRAL CALIFORIIIIA

ARCATA/EUREKA/FORTUIIA

Bracut International ......

Brin Lumber Co.

Combs Lumber Co.

Costa Trucking. Joe

Humbolt Redwood Co.

Louisiana-Pacific Corp PVM Redwood Co. Reid&Wrighl Schmidbauer Lumber, Inc.

AUBURI{/GRASS VALLEY

All-Coast Foresl Producls, lnc.

SATENSFIELD

Hioorns Lumber Co. Paiific wood Preserying ol Bakersfield. Corp. {805) 582-3950

CLOVERDALE

BowmanLumberSales

Louisrana-PacilicCorP.

Rolando Lumber (Kinlon Drv.)

flIRI SiAGG

Georoia-Pacrfic Coro. (Redwood) Holm-es LumberCo.. FredC.

FRESIIO

Georoia-Pacrlic Warehouse....

Hrooins Lumber Co.

Le-wis co.. Inc. Palmer G. Pacific Foresl Products. WeverhaeuserCo. (800) 742-1939 u,oadwork lnstitute ol Cahlornra

Los 8Ar{0s SlewanHardwoodLumberco..

H()LLISTER DMK-Pacilrc

1{0DESr0 Snider Lumber Producls. Sward Trucking

SEODIilG ANEA

Canlor U.S.A. Corp

Cailoll Moulding Co.

DMK-Pacitic Corp.

Fonlana

FremonlForestProducls

Ganahl

Georora-Pacific Coro.

Golding

Hatris Truckina Co.

Hines Equipmdnt Co.

lnland Timber Co.

L-P orslributron Cenler

Laminaled Timber Seruices Inc.

MacBealh Hardwood

Mariner'sForestProducts

Marquart-\tlbll8LumberC0...

NewportPlaningMill. Inc.

Pacilic Lumber Co.

Pacitic Madison Lumber Co.

Patr Lumber Co.

SACRAMEl{TO/SI(lCKTON AEEA

Berger & Co.

Canlor u.S.A. Corp.

CapilolPlywood ........

Floor Seryice SuoDly

GabbertLumberSa[es {800} 521'1155

Georora-PacificWarehouse...

Hedlind Lumber & Machrne Slainrng

HigginsLumberCo. .....

Koppers Co.

LaminatedTimberSeruices, Inc. ... ...

Lewis Co., Inc.. Palmer G.

Louisiana-PactltcCorp. ....

Michigan-CalilorniaLumberCo...

[, & M Builders Supply..

Nikkel Corp.. The. P&MCedarProducts.

Rocklin Foresl Producls

Srmmen Lumber Slanline,lnc..

StocklonWholesale.

lJnron Foresl Products

Union Planing Mill

waldron Foresl Producls....

Western Wood Trealnq Co.

WeyerhaeuserCo. (800) 952-5616

SAI{TA lrlAR|A Higgrns Lumber Co.

SAI{TA R()SA AREA

J.H. Blevrns Co., Inc..

Higgins Lumber Co

MarlinForestlndustries

Noyo Timber Producls. Inc.

Nu-Foresl Producls

Rrch Doss, Inc.

Windsor Mrll, Inc.

UKIAH/CAtPELLA/WILLITS

All Hearl Lumber Co., Inc.

CoastWbod Preserying, Inc..

ForestPr0ductsTransp0dation....

Little Lake Industries

Louisiana-Paciiic CorP..

PenofinMarkelinq .......

0MK-Pacilic Lewis Co., Inc., Palmer G. Louisiana-Pacilic Corp. (Red Elult) Paul Bunvan Lumber Co. P&MCeharProducts....... (916)

oR^]aoE, RIYERSIDE & SAN BERXARDIIIO COUT{TIES

KEI{MOBE

Lswis Co.. Inc.. Palmr G GREATER SEATTIT/TAC(ITA ANEA

AmericanTaroo.

GUIDE wasHtroToll

Arn€ricanPlywmdAssociation.

BUVEM]S'

PAGIFIC ]IORTHWEST STATES ROCKY rOUt{TA|ltS COLORADO

H. Saxter & Co.

Eradylnternational. (206) 251-0900

Builders Hardware&Supply ... (800) 426-2131

BurnsLumberco......

Colonial Codar

Georgia-Paciticoorp.(laconE)

G€orgia-Pacilic Corp. (Seafl le).

LewisCo., Inc., Paherc{Auburn)

Lewis Co., Inc., hlmer G (Bremertm).

LewisCo.. Inc., PdmrG{Everefl)

Lewis Co. , Inc. , Palmf G Alaska oiv. . .

Loth 1umber..........

l,lcFarland Cascade in lM. (800) 521-213

Northwesl Forest ftoducts......

Sequoia Supply.

Simpson Trmber Co.

Tumc Lumber Co.. (800) 982-8202

\rlbsalch MounlainManlelco . ........

weyerhaeuser c0. (s€atfle) (800) 562-0908

Weyerhaeuser Co. (Taco.m).

SPOKAI{E

Berger&Co.

Georgia-Pacilic Ctrp.

Lilis Co., Inc., Palmr G.

Weyerhaeus€r Co. (tn0r., ld., Mr.)..........

WENATCHEE Lflis Co., Inc.. Pdrer G.

YAI(MA Levi/is Co.. Inc.. Palrner G

JohnT.

(800) 547-8371

Forest Products. (800) 547-8465

Crow s Wgekly

Disdero Lumb€r Co.

D[rK-Pacifrc

FrissenLumberCo.....

Fullmer Lumber Co.

FurmanLumber,lnc..

Georgra.Pacilic Corp.

HamplonLumberSalesC0.

Intercell Manufaclurino Co., Inc. .

LswisC0., Inc.. Pahe-rG.

Louisiana-Pacitic Corp

Lumber Producls

[rt. Angel Plywood Inc.......

Norlhwest Hardwoods

Penberlhy Lumber Co.

Pope & Talbot.

Publishers Forest Products {800) 547-6633

Sequoia Supply

Simon.Crabtree&Ryan.......

Southern Pacilic

SunriseForestProducls (800) 547-1771

Western Inlernational Forest

Western Red Cedar Lumber Assn.

Western Wbod Products Association

Weyerha€user Co.

RIDDIE

C&D Lumber C0...............

Herberl Lumber Co.

R(lSEEURG

Keller Lumber Co.

Sun Studs, Inc. SATEM

aRtzolta

AREA

Corp.

Bros., Inc. l\4ouldino

1'EYADA

ln Az

Luirb;r uihoielrre. inc leobj zs.pnrir!

ilEW tEXtCO

@BITqARNEg

Nfred D. Bell, Jr., Past President and chairman of Hobbs Wall Lumber Co., San Francisco, Ca., and publisher emeritus of The Merchant Magazine, died Nov. 20, 1985, in San Mateo, Ca., after a short illness. He was 76. (also see p. 23.)

Born in Yonkers, N.Y., on SePt. 3' 1909, he was graduatd from Hotchkiss Schoolin 1928 andS.B. cumlaude from Harvard University in 1932. He served overseas as a Lieutenant Commander, USNR 191245; general sales manager, Hammond Lumber Co.; president and chairman, Hobbs Wall Lumber Co.; president, Vacaville Lumber Co.; and director, Willits Redwood Products Co.

Other accomplishments included president, North American Wholesale Lumber Association; President, Traveler's Aid Association of America; director, United Services Organization, Inc.; vice President, Forest History Society; President, Forest History Endowment Fund; president, Bay Area Wood Council; member, National Wood Council, Lumber IndustrY Merchandising Council; and president, San Francisco Hoo-Hoo Club, a lumberman's fraternal oreanization.

He -was also a member of the Bohemian, University (San Francisco), Pacific Union, Burlingame CountrY, Cvpress Point and Owl clubs.

-Mr. Bell is survived bY his widow, Marjorie Blyth Bell, two daughters, two sons and five grandchildren.

W. Judson Blanchard, active for many years with his late father, W. A. Blanchard, in the Blanchard Lumber Co., Burbank, Ca., died of heart failure Oct. 13, 1985, at his home in Bel Air, Ca. He was 77.

Born in Kansas, he and his familY moved to Burbank when he was a child. He attended Occidental College and USC Law School.

Mr. Blanchard became vice president of his father's lumber company under the President, his

uncle, R. W. Blanchard Sr. In 1956 the firm was bought by his cousins Lemoine and R. W. Blanchard Jr., and he retired.

Mr. Blanchard is survived bY his widow, Jan, one sister, one stepson and two daughters.

Jeanette Adams

Andy Anderson

Ron Bamey

Fred Bem.ardi

Steve Bemardi

Bob Carlson

Gerald "G" Chamberc

Sheri Damugh

Paul Fossum

Scott Fossum

Noel Gaerttner

GregGomon

Abbie Hanlon

Harcld Henderlong

Jim Henderson

Itutb Hill

Chadotte Hoey

Jeff Howard

BillJemelha

Wayne Jemelka

BethJewett

Art Kelly

Scott lGnnedy

Jim Lewlman

Rita Lunden

Tbm McHugh

Lynn O'Neill

Helen Osbome

Judy Roe

Malissa Shary

Dar.te Steege

Peter Wilhelm