Merchant Magazine - December 1986

THE N/ATIONAL HOME GENTER

serviCes iaflored to )our

B.bf and lbrne &nler oitm vedr awarOs nX ing Display Cenler. Relax and enjoy customers. No buying group. assoaiation or fellow dealers after Show hours at our FREE iS llsaler show offers lhe COMPI,ETE range oif home improvement products you'll lind at the t987 Nalional Home Center Show.

nxcithtg seminars and workshops geared to your specific needs and interests. Here's your opportunity to lisfen 1o and interact wilh experts who understand and can offer solulions to the challenges and opportunities you face on a daily basis as a truilding materials dealer. You'll

Plus, you can hold the line on travel li lnS advantage of our special hotel rates and rock.bollom airline fares. Save $lo by pre-registering TODAY for The national Home Cent€r Show. Fill out lhe registration form below and return it to us by February 6, t987. You'll receive a FREE Show badge by return mailand avoid the $tO at-Show registration fee. Mail yours TODAY!

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March 8-11. 19trf Chicago, lllinois

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Editor-Publisher David Cutler

Senior Editor Juanita Lovret

Assistant Editor David Koenig

Contributing Editors Dwight Cunan, Gage McKinney, Ken Thim

Art Director Martha Emery

Staff Artist Carole Shinn

Circulation Dorothea Creegan

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EDITORIAL

ls Mr.Nice Guy still alive and

IN A recent session of informal shop talk we I heard voiced a theory that we've heard many times before. Namely, that there is a surprisingly high percentage of nice people in the wood products business.

This being the holiday season, good cheer and all that, it seemed an appropriate time to take note of this seeming phenomenon. Not for any collective sense of smugness on the part of an entire industry, but because it's interesting to speculate as to why it might be true.

Those who place the men and women in the lumber industry in the good guy (good person?) category often allude to the high number of transactions done on a handshake, word-of-mouth basis, claiming the untrustworthy are eventually weeded out. The wood business is among the oldest in the U.S. and so has a continuity, with sons and daughters who carry on the business each generation. Ethereal arguments also claim that the natural qualities of the products are somehow respon-

well?

DAVID CUTLER editor-publisher

sible and that the business just seems to attract and keep nice people.

Of course, cynics laugh and hoot at the whole thing. To them the quick pay customer is the good guy. The rest are just yokels waiting to be sold something. Cynics feel the so-called trustworthiness in the lumber business is just a function of its backwardness and they can quickly produce a stack of unpaid bills to bolster their position. Tales of flawed transactions are legion, they claim.

We can't imagine there is a scientific answer to this question. Nor is anyone likely to prove or disprove the contention with any finality. But one thing we do know for sure. The number of friendly, likable people we encounter in this business far outweighs the other kind. We hope you've also found this to be true and that your year has been brightened by customers and co-workers.

Seasons greetings and best wishes from all of us at The Merchant Magazine.

Serving the lumber and home center markets in 13 Western StatesSince 1922

D-M-K of *, -"tf."y nrrne)

growr' ss fost

DMI(-Pccrfn iu,If' We\'e affie{ rcnt peopte to our frn to tnroiitrto;in orLr trsditiorl- of senbe Dwight Curran Md exealts@for our crrstomers, our fanity wiahes you on{ your fmity a healtfty on{ happy hoti{ey sedson an{tewyear.

Cotttbrrrrel growtftfot 6oth ow famly on{ out componyhss lma{e 1986 on exfiting yeot for us. Dewtire 77, Mrir;ftacI 74, onlKntre ll' (tI@

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Strong building products market

By T. Marshall Hahn Jr. Chairman and Chief Executive Officer Georgia-Pacific Corp.

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the building products industry for 1987 and the rest of the decade. Even though housing starts likely will decline somewhat in the coming year, single family residential construction should remain strong as long as interest rates are affordable.

Remodeling /repair and additions markets, which are already strong, will become even more important to building products manufacturers and distributors in the future. Continued strength and activity of this market, regardless of economic conditions, are an important hedge against the cyclicality of new construction. We also will see more opportunities for new product development to meet the specific needs of this market.

Continued technological improvements also will remain an important factor in industry growth. Because of increased efficiencies in our plants and mills, we can make plywood more economically than we did a decade ago. The advent of new, highly cost-effective structural panels, such as waferboard and oriented strand board, is evidence of the industry's major offensive to reduce housing costs. This progressive trend will continue as

Story at a Glance

Single family construction strong . . . R&R even more important. .. continued technological improvements.. weak pricing short term... effects of new tax law.

will our ability to increase yield from our raw materials.

These are the kinds of improvements that have strengthened our industry's position as suppliers in global markets. Worldwide, the United States remains the premier supplier of building products, and in the coming years, we will continue to solidify that position.

There will be many opportunities to expand our markets in the future, yet some formidable challenges will shape the way we will do business.

Foremost among these challenges is the new tax reform law, which will force us to realign our priorities in several areas. The repeal of the investment tax credit is a severe blow to expansion and modernization programs crucial not only to improving production and quality standards, but also to maintaining our competitive edge. New capital investment programs will be even more carefully scrutinized for their ability to generate adequate returns.

An extended period of lower

U.S.-dollar exchange rates will make American-made products even more attractive to foreign buyers. We must, however, continue to press for equitable treatment of U.S. exports in world markets. For a level playing field to develop, international markets must be as open to competitive U.S. goods as our own markets are readily accessible to foreign goods.

Weak pricing also will likely continue challenging our industry in the months ahead because of overcapacity in lumber and plywood production. The preliminary l5% countervailing duty recently imposed on Canadian softwood lumber imports should ease the lumber pricing squeeze somewhat, but until demand comes into line with capacity, producers will be hard pressed to increase profit margins.

Investments in new facilities will be fewer in our current environment, with future expansion most likely through acquisition and upgrading existing facilities. The volatility of market conditions makes it increasingly difficult to anticipate future capacity needs, so any commitment of capital to large greenfield projects will be examined even more closely than in the past.

These challenges, however, do not dampen our optimism, but rather reinforce the necessity to take advantage of current possibilities. There are ample opportunities ahead for growth in sales and profits.

llf e ARE forecasting a stron- lU ger economy in 1987 than in 1986,whichhas turned

out to be relatively sluggish. Howi ever, mildly ris: ing mortgage interest rates, overbuilding in such sectors as offices and apartments, and the negativeeffects of tax reform on income property construction year.should reduce activity in the next

Real gross national product is forecast to rise 3.6% from fourthquarter 1986 to fourth-quarter 1987, compared to an estimated 2.70lo during 1986. Fixed mortgage interest rates are forecast to rise from an average of close to l0o/o in fourth quarter of 1986 to around llo/o by the end of 1987. The U. S.

Stronger economy in 1987

By Phillip E. Yincent Vice President & Senior Economist First Interstate Bancorp.

Consumer Price Index is expected to rise 4.4% during 1987 compared to an estimated increase of 1.80/o in l 986.

In the national housing market, housing starts are forecast to de-

Story at a Glance

Reduced construction activity...3.6% rise in GNP.. lower energy prices, money supply growth will help consumption and production wide disparities in outlook for western states.

cline from an estimated 1.88 million in 1986 to L77 million in 1987. The majority of the decline is expected to take place in the multifamily area.

The underlying factors that yield basic optimism for the overall economy include the decline in energy prices, the fall in the value of the dollar, and rapid growth of the money supply. Although some states with major oil and gas reserves have been hit hard by the major drop in oil prices during th€ first part of 1986, the nation is a major net exporter of oil. Thus,

(Please turn to page 71)

More good news than bad

By Peter Ganahl President Ganahl Lumber Co.

E IRST let me give you the good f news: inflation will be under 2o/o for the second year in a row. 1986 will finish at 1.6% and 1987

will be about the same. That's good news if you lease your facilities with Consumer Price Index escalation clauses. But it's bad news if you're investing in real estate in the hope that you'll get appreciation. The median price of existing homes is flat and likely to stay the same in 1987. Although house prices have shot up in certain eastern markets, they have been offset in sunbelt markets. In the long run our industry is better off with relatively stable housing prices because it removes speculators from the market and lessens the "boom or bust" cycle.

More good news. If you liked the ihterest rate trends of 1986, get ready for more in 1987. If you have any doubt about our industry being interest rate sensitive. take a minute and review your company's

financial statements from l98l and 1982. Low interest rates are good for our industry, and that's what we will have in 1987.

The bad news comes from the fact that we've had four straight expansion years in the construction industry. During this time the companies that supply contractors have enjoyed profitability and growth. Many of these have reinvested some of these profits in expanded operations and new operations thereby resulting in increased capacity in the industry and this in turn has put downward pressure on margins. (Remember supply-side economics!) This is the same thing that happened in the home center industry from 1980 through 1985.

Story at a Glance

Low inflation, low interest rates to continue. added capacity depresses margins. . increasing both sales volume and profit is the challenger of 1987.

By 1986 almost all of them operating in our Southern California market were either losing money or they had dramatically reduced earnings as a result of the overstoring.

What are the implications of these trends of inflation. interest rates and competition for the retailer of lumber and building materials? Getting all the volume we want in 1987 is the easy part. It's no trick to increase sales volume. However, it's no great honor either! Just set your prices low enough and the volume will go up. In our market. Home Club tried this and it worked - they got volume. But they have yet to achieve an operating profit.

The real challenge in 1987 will be to increase sales volume and get a corresponding increase in profit at the same time. I can guarantee you that it is much easier to write these words than it isto actually accomplish what the words say. At Ganahl Lumber, we believe the accomplishment lies in better execution of small things. Our mission is not to do anything extraordinary, but rather, we want to do the ordinary things extraordinarily well.

1987 will repeat 1986

By Pete Niebling Executive Vice President North American Wholesale Lumber Association

CONOMIC projections for E 1987 generally indicate a repeat of 1986 business activity. Economists, trade group gurus and tea leaf readers are mildly optimistic in a number of economic areas.

They foresee sluggish but continued improvement in the GNP and another "leg"onthe Bull Market in Wall Street. Perhaps there will be slightly higher interest rates and inflation, but such upward pressures will be minimal. Slight improvement in U.S. international trade should be another plus ingredient. Such general optimism is tempered a bit by the likelihood that economic activity will remain regional in nature. By this we mean, good times on the eastern and western coasts and continued trouble in America's heartland.

For the forest products industry, we should also have a repeat of 1986. If we build 1.8 to 1.85 million housing units in 1986, we might expect a decline of about l0o/o in 1987. NAWLA projects a housing start year in 1987 of 1.63 to 1.65 million units. Tax reform and overbuilding in some areas may affect apartments and multifamily units but the trend towards more single family homes as a percentage of the whole should continue.

Our association sees a substantial increase in remodeling markets during 1987. And this was a great market for wood products this year!

Industrial wood markets have been good and, again, more of the same for 1987. Our wood pallet market is adversely affected by the decision of auto manufacturers and the Federal Government to discontinue the use of wood pallets. These decisions may be reversed, but if not, the remaining industrial market for lumber will be better during 1987.

It looks as if the overseas export of lumber will also improve slightly in 1987. The fall of the dollar in

1986 should provide some better results in U.S. exports.

In summary, demand levels for lumber, plywood and other wood products should be almost as great as in 1986.

Story at a Glance

ation of oversupply. This means that both the domestic and foreign marketplace will be very competitive. There will be continued pressure on sales margins and continued problems in depressed regions of the U.S. Projecting effects of the Tax Reform Act of 1986 and the controversy over Canadian softwood lumber imports on our lumber business is extremely difficult. If history is any guide, these events will neither be as good nor as detrimental for our industry as some people expect.

Therefore, our message is the same as a year ago:

Conversely, it should that our 1987 projection demand. We also expect

Good management, operating cost containment, and professionalism in marketing and sales will continue to be the answer to profitability and growth.

Over-the-counter sales promising

By William T. Robison President American Plywood Association

Q rnucfURAL panel produc1l tion in the U.S., buoyed by rising demand, should reach at least 25 billion square feet, 3/8-inch

Mild optimism... 1.63 to 1.65 million housing starts. . substantial increase in remodeling markets. industrial wood markets good continued oversupply. be noted deals with a continubasis, by the end of this year a 700/o increase over 1985 production and the fourth consecutive annual production record for the panel industry. In spite of an expected slight dip in housing starts, APA expects the strong production pace to be maintained in 1987.

The year ahead should be one of even more diversified penetration in nonhousing markets, particularly

over-the-counter sales through home centers nationwide. This bright forecast takes into account the likelihood of a reduction from 1.85 million housing starts this year to 1,75 million in 1987, due in part to tax changes impacting multifamily construction and to anticipated upward pressure on interest rates in the second half of next year.

In 1987, in excess of 25 billion square feet of structural panel production should be required, as new promotional gains are added to a marketplace which already has strong demand momentum. The current wait-and-see attitude of consumers as they attempt to understand the new tax laws introduces a note of caution, but APA is forecasting that the public will adjust to the tax changes and

Challenging hardware opportunities ahead

By Roger E. Peterson President Ace Hardware Corp.

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be characterized by many challeng-

ing opportunities. These opportunities require an extraordinary effort to be successful, whether it be at the wholesale, manufacturing or retail level.

Contributing factors include our economywhich has become more complicated than ever before, along with the complexity of today's tough competition. Today, we have price wars, better educated consumers and a thriving do-it-yourself market that, overcome reluctance to make new purchasing commitments.

Home additions and remodeling will compensate for the housing decline by adding an estimated 6% to the over-the-counter distribution markets. Another 5 o/o increase in nonresidential can also be seen next year as industry promotion generates new business in the commercial roof deck sector and other areas.

Story at a Glance

1.75 million housing starts

.1oo/o increase in plywood production . . remodelingwill add 60lo to over-the-counter distribution.. timber supply clouds bright future.

Overseas. too. the outlook is brighter. Markets have pulled out of a long slump, and recovery is evident in Europe and elsewhere. Offshore shipments were 800/o ahead of 1985 for the first eight months of 1986.

A major cloud that could come

despite some maturity, will continue to expand because of mo(e households participating in d-i-y projects.

This increased participation has led to consumers tackling bigger and more complicated projects. The result is a wiser, more knowledgeable consumer who demands quality products in a significant number of categories, along with competitive pncrng.

This evolutionary demand for quality should help U.S. manufacturers whowith a concern for cost controlstend to have better quality products than comparable ones produced offshore. Medium to upper priced/quality products have proved to be most popular in hardlines retail outlets, indicating that consumers do want a choice.

Hardlines retailers who have made a definite effort to offer a selection of products at various quality and price levels have reported consistent, profi table growth in the sale of hardware items.

Story at a Glance

Expanding d-i-y market. . more consumer demand for quality, competitive pricing . slow growth in number of stores. increased volume per store stores need better identity.

in the way of an even brighter future is in the area of timber supply. In the Pacific Northwest, there appears to be more concern in certain circles for the welfare of the Spotted Owl than for thousands of wood industry employees whose livelihoods are threatened by plans to over-protect the owl. In the south, harvests in some areas are just beginning to overtake net annual growth. What's needed is renewed commitment to timber management on the 70% of southern forest lands that are held by small private owners. Our industry must not give up the fight for capital gains relief on long-range forestry investments, despite the setback it has received in the recently approved Tax Bill.

A sobering reminder is needed, though, that our immediate problem is to do all in our power to assure there will continue to be an adequate raw material baseand at the same time to create markets in the short-term for the 5 billion square feet of unused capacity. We've got the ideas, we've got the programs and we've got the energy. A world of fresh opportunity awaits us.

Recent studies indicate the emphasis among consumers is definitely switching away from price alone and toward quality and added values. Added values, of course, include what hardware/ home center stores are known for: a source of knowledgeable, helpful sales people willing to take the time to advise their customers on their intended projects. With the popularity and growth of ttre d-i-y movement, this has become more important than ever.

The outlook for our industry for the next few years indicates a slower growth in the number of stores but an increase in the average volume per store. This means hardware and home improvement dealers will have to increase their penetration into the d-i-y market segment. Their goals should include increasing the shopping frequency among existing d-iy households, along with efforts to increase the average transaction per sale.

Afocus toward betteruse ofspace ahd inventory, rather than on managing new store unit growth, will be the key to successful retailing over the next five to 10 years.

Successful dealers will keep pace with developments in their marketplace. They will be able to offset competition by offering increased service and value and by forging a real identity for their particular stores in the community they serve.

Manufacturers must adapt

By Jerold Tuft President Schlage Lock Co.

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us will look back upon this year as the "golden year." Building products executlves seeking to repeat the success of 1986 will find that goal more and more elu- siveas the decade progresses. Although we have all enjoyed one of the best years of the decade, there have been some disturbing events taking place. For example, when you add up the construction statistics, most executives are surprised to learn that the best construction year of the decade was not 1986 but 19851 Real construction spending for 1986 is actually off .340/o! Current overbuilding in certain sectors, a weaker economy, and fundamental changes in the tax code all will combine to accelerate the decline that has begun this year.

Certainly, the non-residential sector contains the .greatest exposure to decline for 1987. With total non-residential constuction slipping 100/0, the "red flag" is up as to the true nature of next year's non-residential climate. Put plainly and simply, the traditional three year construction expansion was stretched into four years due to favorable tax laws and a growing economy. The market and the economy can no longer absorb excess non-residential capacity and thus, this sector is poised for a decline next year.

The non-residential sector for 1987 will see significant declines over present levels. However, behind the "doom and gloom" lies opportunities for savvy manufacturers who can successfully target their markets. For example, in a year where office starts could decline to half their level of 1985, institutional building, dependent on demographic changes, will remain close to current levels. The continued increase in the applicability of accessibility codes, particularly in the institutional market, lays the groundwork for a growth segment. Construction of retail buildings, because they follow

housing starts, will actually increase 5% for 1987 creating yet another market niche.

Because of structural changes in the market, all of us will become more dependent on the housing market. With the continued lag of mortgage rates responding to recent declines in short-term rates, the stage has been set for further decreases in the mortgage rate next year. Thus, single-family housing will continue its three year growth strut.

Adding to this synergy is the continued single-family mix change away from starter homes toward

Story at a Glance

Success will be elusive . . . declining non-residential sector...institutional building steady .5o/o increase in retail buifding ... 12o/od-i-y growth.

move-up homes otlering construction products manufacturers a market with increased spending per home. Multi-family starts will be most affected by tax law changes and are expected to decline by 200/o in 1987.

The rehab market will also see fundamental changes next year. Removal of the Investment Tax Credit will have its primary effect on commercial renovation projects, pushing this sector down 25%. However, with the average age of a commercial building increasing to 23 years (versus 22years in 1985), the replacement market will continue to accelerate.

One of the prime beneficiaries of the strong housing market is the do-it-yourself sector. With 80% of d-i-y projects undertaken within two years of a house purchase and sales of existing homes approaching 3.7 million, the foundation has been laid for a continuation of the l2olo compound annual growth rate in the d-i-y market.

Compared to the past "golden year," 1987 will be a year offundamental structural change in the construction cycle. As the economy continues its slowdown, the construction industry will be challenged to respond to a different set of events.

Redwood industry confident

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

I N tlzs, after the tast Redwood I National Park expansion, several industry observers were sounding a death knell for the redwood lumber industry. Contrary to predictions, the redwood industry has shown the same resilience and tenacity as the trees that constitute its resource. Major redwood producers recently invested millions of dollars in new sawmills. a certain indication of their confidence. Many mills use the most advanced computer-aided equipment. Most important, redwood production has increased steadily. This makes me feel obliged to com-

ment as Mark Twain did when he cabled the Associated Press from London saying: "The reports of mY death are greatly exaggerated."

In 1986. the California Redwood Association conducted a survey of all redwood producers to help us anticipate the marketing needs of the industry. I'd like to share the results with you. They are interesting and, in some respects, perhaps a little surpnslng.

In a siven vear. redwood accounts for onli 2o/n io 3dh of U.S. softwood produciion which lies in the range of 39 billion board feet. The numbers may seem deceptive because redwood is highly visible in the market place and in applications. Another figure, percentage of sales, provides a different perspective. While redwood accounts for 20lo to 30/o of production, it usually accounts for be-

tween 40lo and 60/o of sales, reflecting redwood's higher value and greater profit margin.

From a modest level of 760 million board feet in 1982, redwood production has increased gradually and is expected to exceed one billion board feet in 1988 where it will remain relatively steady for the remainder of this decade and into the next. The primary reason for this 410/o increase is the coming of age of many young growth redwood forests. Many lands that have been harvested and reforested now hold timber of a marketable age. This is a trend that will continue into the next century.

Redwood lumber is divided into two major product categories. There are the clear, architectural grades, used for siding, interior paneling and millwork and there are the knotty, garden grades, used for decks and outdoor applications. Naturally, the

grade mix developed from young growth timber is different from old growth timber, but one of our survey's surprises is that while prod-

Story at a Glance

Redwood industry modernizing, increasing production amount of marketable timberincreasing . . . availabil- ity assured into next century. . specialty status to continue.

uction increases, the grade mix will stay proportionate, with about 200/o architectural grades and 800/o garden grades.

These figures bear a few messages for lumber dealers. First of all, redwood will continue to be available in increasing quantity well into the next century. The grade mix for the next five to ten years will remain the same, which means redwood will keep its position as the most highly desired product for the active markets of siding, interior paneling and outdoor decks.

While it will continue to be readily available. redwood will never become a commodity. Redwood production will remain small compared to the total softwood production of U.S. and Canada, More important, redwood's status as a specialty wood is due to aesthetic and physical properties which are unmatched by other woods. The bottom line is lumber retailers stocking redwood will continue to make a greater profit from redwood than other competing species.

Warehouse war strategies

By Robert C. Vereen Executive Director Home Center Institute

I nSf YEAR, we talked about L the disastrous trend in this industry to engage in a price war, and the need to focus on improving

customer service through better employeetraining as an offset to an ever-widening and more destructive price war.

The pricing wars have continued. and the casualties have mounted. Hechinger declared itself out of the warehouse business as this success- ful, always candid giant found warehouses discouraged female traffic and did not produce acceptable rates of return unless one ran the only warehouse game in town.

Mr. How has been parceled off, largely to Builders Square. Homecrafters has been bought by Wickes. Zayre bought HomeClub and finds losses larger than expected and unacceptable. Pay 'n Pak's earnings dropped sharply.

How can one remain a profitable

player in a field so dominated by pricing images? One of the needs is to develop a pricing strategy that identifies the price-sensitive items and allows you to create the right pricing image on those items while finding other products on which tiny margin gains can be achieved.

The whole concept of priceshopping by the consumer, initiated by home center efforts, makes large-margin gains on individual items or merchandise classes increasingly difficult to attain.

Home Center Institute has been seeking ways to develop their pricing strategies during this past year, and in 1987 is offering two new servtces.

Price-shopping competition is nothing new. It's been done for

Story at a Glance

Casualties mount in price wars. . strategy must be developed . . . large margingains difficult to attain new developments in price checking.

years, but not as regularly as it should be. Now an in-store price auditing system has been developed that will check the everyday shelf price of 1,200 significant items in a variety of storesmass merchandisers, home centers, hardware stores, etc.in key markets around the country. Subscribers will get these price checks in an actionable format as they are developed by market once a year.

What should be the "right" advertised price? No one can be low on every item every day and stay in business. Is there a comfort zone for a line or product? A new service checks print advertising monthly and issues by-item information showing advertised price, regular price, brand name, model number, and description, as well as who advertised the product, where and when. Capable of sorting more than 10,000 advertised items monthly into 3l merchandise categories, this is proving to be a useful management tool.

These are two responses to needs in this highly competitive retail marketplace today.

Tax Act changes everything

By Dr. Randall Johnston Pozdena Senior Economist Federal Reserve Bank ofSan Francisco

I N tvtv vlEw, two major facrors I will dominate the evolution of the U.S. economy in the next 12 months: the new tax bill and the

delayed "kicking in" of the effects of a weaker dollar. These factors,inturn, will govern the development of lncome, effiployment and spending trends in 1987.

The Tax Act of 1986 changes dramatically virtually every major parameter of our tax system. Any structural change of this magnitudeeven if its long run effects are likely to be positivewill create dislocations in economic activity that will tend to have a depressive effect in the short run. The long run effects themselves probably will be slightly stimulative on balance. The sharp reduction in personal marginal income tax rates, for example, should encourage workers to supply their labor to the market, resulting in greater employment and labor force participation. These reductions also should put downward pressure on nominal interest rates which some economists believe are sensitive to the rate of taxation.

The "deceleration" of depreciation allowances, the elimination or reduction of tax credits for investment and R&D and the elimination of preferential treatment of capital gains will put downward pressure on the prices of real estate and capital goods prices in the affected sectors. Whether, in the long run, this will have the deleterious result of decreasing the rate of investment in the economy depends upon how rapidly and completely these price adjustments in the capital goods sector occur. My own feeling is that any depressive effects on investment will be short-lived and partially offset by adjustments in the financial cost of capital. It is in 1987. however. that manv of these adjustments will be working themselves out and, on this basis, it is likely to be an unimpressive year.

Let me turn now to the second

issue, that of adjustments to changes in the international value of the dollar. The large decline in the value of the dollar that has occured in the last year and a half has not yet been felt generally in reduced imports or increased export demand. In fact, these changes which have been observed historicallyare occuring at a rate that is about four quarters behind the adjustment pace of past experience.

This implies that 1987 will be a year in which these adjustments are likely to begin to be felt. As a consequence, there will be upward pressure on import prices (and domestic products competitive with these imports) and increased demand for U.S. agricultural, forest product and manufactured goods, to the benefit of these sectors and the trade balance generally. Just how healthy a year 1987 proves to be for enterprises in an industry

such as the forest products industry, therefore, depends upon the balance of these affects and those cited above as a result of tax reform. Although net forei'gn demand will be enhanced, it may be insufficient to offset the likely softness in domestic investment demand for new structures. In the long run, however, as the changes in tax law are "capitalized" into lower land values, as interest rates remain low and the (relatively) preferential treatment afforded residential real estate is recognized, any short run depressive effect on housing starts should be blunted.

These comments are the personal observations of the author and do not necessarily reflect the views ofthe Federal Reserve Bank of San Francisco or the Federal Reserve Svstemed.

Story at a Glance

Tax bill and weaker dollar will govern income, employment and spending. .. increased forest products demand lower land values, interest rates to blunt depressive effect on housing starts.

Strong lumber consumption

By H. A. Roberts President Western Wood Products Association

He YEAR 1986 win be

TI another record year for lumber consumption in the U.S., with western producers supplying nearly

400/o of the lumber used in the country.

For the third year in a row, Americans are expected to use record volumes of lumber.

Some 46.1 billion board feet of lumber is anticipated to be used in the U.S. in 1986, 4.30/o more than in 1985.

Looking ahead to 1987, slower economic growth and the impacts ofpending tax changes on the construction market will likely force lumber consumption slightly lower.

Yet, with an anticipated decline of 3.7%, next year's lumber consumption of 44.3 billion will be the second highest volume used on record.

Story at a Glance

Strong lumber consumption . . . single family housing will account for 66% of starts. . increasing international markets for U.S. lumber. Canada will supply 33.1olo of lumber used in U.S.

Western shipments are expected to decrease by 3.20/o to 17 .61 billion feet in 1987, supplying 39.70lo of the lumber used next year.

Housing is forecast to slip to 1.75

Dynamic merchandising in Northwest

By John N. Anderson Chairman and Chief Executive Officer Palmer G. Lewis Co., Inc.

T THIS time of the year leaders in the building materials industry are looking over the fence at 1987, attempting to assess the economic environment that will prevail. The question is paramount in all levels of our industry whether it be discussions among management personnel, topics of convention and industry seminars or news articles in leading publications.

In looking ahead to 1987, it seems prudent to assess our present environment. 1986 has brought many changes in the building materials industry to the Pacific

Northwest. We've seen a rekindling of a new housing market in the urban areas, a long awaited expansion of the housing resale market, an increase in commercial construction, gains in home remodeling and, certainly, a more confident consumer. We have seen further expansion in the retail home centers arena. 1986 has been earmarked by the entry of the warehouse home center into the urban markets of the Pacific Northwest.

to the long term direction of the depressed Alaskan market. The only certainty in the 1987 economic climate lies in a continued challenge to building materials management to improve their ability to serve the customer, increase their position in the marketplace and maximize their return on investment,

million units in 1987. The single- family housing market should remain strong next year, accounting for 660/o of total conventional starts. The multi-family housing market, beset by high vacancy rates and changing tax laws, will bear the brunt of the decline. For the year, 16.95 billion feet of lumber should be used in residential construction.

A bright spot in both 1986 and '87 will be the international markets for U.S. lumber. This year, lumber exports are expected to increase to 1.7 45 billion feet, up l5o/0. Next year, U.S. exports should increase another 60/o to 1.85 billion feet. The only major international market where demand for U.S. lumber could be soft in the next two years is Australia.

Canada will again ship a record amount of lumber to the U.S. in 1986. Probably l5 billion feet will be shipped to the U.S. this year, despite strikes at Canadian mills this summer and fall. Next year, Canadian shipments to the U.S. should Lotal 14.7 billion feet, supplying 33.10/o of the lumber used.

Yet, even with increased opportunity, increased competition has caused building material manufacturers, retailers, and wholesalers a continued experience of flat or slow growth sales curves. This factor has led many building material leaders to reevaluate marketing strategies, organizational structuring and purchasing philosophy. Clearly, the emphasis is on P&L statement bottom line and return on investment. The need to focus on the primary aspects of the P&L statement, i.e., sales, margins, and.costs of doing business - along with the contributing factors such as merchandising, purchasing, and streamline costsseems to be the name of the game.

We can agree that although insulated for a number of years, the dynamic merchandising applications of the home center retailer have arrived in the Pacific Northwest and in the years ahead will be a factor in our marketplace. While some would label this change as "turmoil", the ability to face the reality of our market and put aside perhaps antiquated philosophies remains the key to a profitable future. This philosophy stands in stark contrast to those who would deny this new age in our industry, ignore the merchandising needs of our retail customers, and simply cry for more protectionism.

1987 stands before us with few "solutions" to our problems. There is uncertainty regarding the final effects of our new tax bill, where interest rates will stabilize, concern over the impact of the warehouse retailer, and uncertainty over regional economies normally spurred on by the agriculture, timber, aluminum, and high tech industries. In addition, there is still question as

Story at a Glance

Few solutlons to problems in '97 challenge is to improve service, market position . . maintaining focus and identity is paramount to growth.

The 1987 business environment will help to crystallize the most basic question"What are we, and what do we do?" As we face the new year, maintaining focus and identity will be paramount to our growth.

Survivors in other industries have suggested that the ability to compete lies in the attitude and effectiveness of our people. Whether it be manufacturer, wholesaler, or retailer, the question of sales training, product knowledge, concern for customers, and a sense of ownership will play a vital role, for herein lies the combustion of professionalism and excitement that are necessary for our success. Organizational structures that bring out the creative abilities and entrepreneurship of individual employees to better serve the designated markets will achieve the success we all seek. We have two options. Number onewe can fight the challenge of change, or number twowe can recognize the positive evolvement opportunity and go for it. Those who choose growth would not have it any other way, for the gift of 1987 may very well turn out to be the maturity and strength of our industry.

Dealers optimistic about '87

By Harlan Hummel Executive Vice President National Lumber and Building Material Dealers Association

llf trg A few geographical UU exceptions, 1986 wil be regarded as a banner year for most retail lumber and building material

dealers. Reliable indicators at this time point to the likelihood that 1987 will be equally as good. However, in the oil producing and agricultural regions of the country, as well as a few of the heavy industrial areas, the general economy is still down, thus putting a damper on housing and related economic activities. But all together, 1987 holds promise for a brighter future for many dealers in these slow-growth areas as well.

Although we are optimistic about 1987, many complex issues are yet to be reckoned with that could substantially influence the final outcome. For example, the full impact of the new tax bill on our industrv has not been deter-

mined. If we are to enjoy continued growth, interest rates must remain at or below today's levels. Inflation will have to remain at a moderate rate. A major undertaking of the 100th Congress will. be addressing the potential problems of the huge federal deficits with no adverse impact on economic expansion.

All of these external factors will play an important role in our industry's performance in 1987; some of the effects could be negative. However, because dealers have recently undergone tough economic times, many have emerged better equipped to operate their businesses successfully. Lumber dealers throughout the country have had to become superior managers for inventory control, employee relations, and investments in equipment and warehouse space; they have learned new skills that help bring about an improved return on investment.

Building material dealers fortunate enough to have experienced a high level of growth in the last two or three years should not become

complacent with their local market position. There will always be extremely strong forces vying for the consumers' dollars. The major competition may not be the lumber dealer or home center down the street; more than likely it will be the automobile or larger appliance dealers. These competitors for the consumers' disposable income do an excellent job of marketing their products; they frequently are able to convince the home owner, or potential home owner, that a snazzy new automobile or hightech appliance will enhance their life style more than a new home or a newly remodeled kitchen or bathroom. Lumber dealers must learn to deal with these sophisticated marketing thrusts.

Story at a Glance

lmpact of tax bill on industry undetermined . . . higherlevels of efficiency needed to im' prove margins and profits. lumber dealers must learn to deal with sophisticated marketing thrusts.

If we effectively cope with the various forces that shape our industry, we can compete successfully. If we do this, 1987 should be a sound economic year.

Modest growth in transportation

By Gary D. Schlaeger Senior Assistant Vice President, Forest Products Burlineton Northern Railroad

F8ft ,3JT",in::l'"fl;,,P#t and its predecessor companies have enjoyed a good relationship with

the forest products industry in the UnitedStates and Canada.

A significantportion of the railroad's total freight volume comes from the forest products 6@E&G,r3 il Induslry. Factors affecting the forest products products industry are important to BN.

In 1986, housing starts in the United States will be about l.8 million units. Housing starts are

expected to decline about 5% in 1987, to about 1.7 million units. Lumber consumption for total residential usage will probably decline about 2o/o from 1986 levels.

While the residential repair and remodeling segment of the industry

Story at a Glance

Canadian softwood lumber duty may increase demand from Pacific Northwest mills ...probable transportation price increase. spot shortages of lumber hauling equipment. prices will hold firm or even increase.

has experienced tremendous growth over the past few years, it will probably soften by about 1.50/o in 1987.

The overall building industry will decline slightly next year, also as a result of the non-residential glut. With an average office vacancy rate of about l6olo in large downtown areas, and up to 230/o in suburban areas, this particular segment needs a shot in the arm.

Finally, the new tax bill passed by Congress contains provisions making investments less attractive. The signs all seem to point to overall volume in the forest products industry declining in 1987, but we

The Merchant Magazine

The !,liedenneyer Co. (industrial and export sales) has been formed in Portland. Or.. by Tom Niedermey'er with Henry Clenro and Audre).' Scto on staff ... Wi,qandCorp.. Colorado Springs, Co., is opening a DC for treated products in Denver. utilizing the former Metz Lumber Yanl...

A unified Canadian oflercombining increased stumpage fees and an exp0rt tax in lieu of the preliminary 15%r countervailing duty set by the U.S. is under consideration by the U.S. Department of Commerce.

Dixieline and Wickes Cos are both negotiating for the So. Ca. Handyman stores due to be liquidated by Dec. 3l . . . Dixie/ine seeks to acquire two San Diego stores and one in neighboring La Mesa to add to its 5store chain which will soon become 6 with a company-built store due reports have it that several [{andyman locations will not close because of lease commitments, but will continue to operate. possibly under a differentname...

Home Depot has posted a lot across the street from Dixieline's Sports Arena Blvd. store, in San Diego, Ca., as a future site . . . Grossman's Inc., (formerly part of Evans Products Co.) has completed reorganization and emerged from bankruptcy proceedings. .

Western Lumber Co., San Diego, Ca., is acquiring the Lumber I subsidiary of Cole Induslrles, National City, Ca.. effective Jan. 1; no price has been disclosed for the 4 retail units and I wholesale operation in San Diego County. .

Wickes Cos. is acquiring Collins & Aikman Corp. (textiles and wallcoverings) for $1.6 billion but has backed off from a $1.7 bitlion offer for Lear Siegler because of difficulty in obtaining bank financing due to the Boesky scandal (see page 63) ..

Lumbermens of Palm Springs, Ca., will open a 4 acre yard in Indio, Ca., in July as part of a Lttmbermens Business Centerof 9 acres of complementing businesses ., Count.y Lumber C'o., Santa Barbara, Ca.. is closing Builders Square, which recently had the right to use that name upheld by a jury in a suit brought by Builders Choice. San Antonio, Tx., has opened a second store in the Portland, Or.. area with two more to debut in 1987 . .

T'um-A-Lum Lumber Co., an 80 year old Vancouver, Wa., c0. is relocating its headquarters to Troutdale, Or. . Wickcs Co.s. is renaming 39 recently acquired Ole's stores as Builders Emporiums.

Home( lub has opened a 100,000 sq. ft warehouse store in Kent, Wa., with plans to open a second Wa. store in Lynnwood early next year . Orchard Sup- ply & Hardware is building a store in Watsonville. Ca.

Waldron Forest Products lnc., Sacramento, Ca.. has moved to new offices at 5744 Windmill Way, Suite 6, Carmichael, Ca. 95608 Jones Wholesale Lumber Co. has moved into handsome new 5,000 sq. ft offices at their Lynwood. Ca.. facility

Inland Lumber Co. sold onlv the office equipment but ni, inventory when Martin forest Industries, Healdsburg, C&., acquired its Dublin, Ca., operation; some details of this transaction were incorrectly reported in our Nov. issue . the deal has n0 effeet on other Inland Lumber offices in Ca.. .

Louisiana-Pacific has completed acquisition of 98.000 acres and a sawmill f'rom 7'imber Realizatiort Co. in Ca. for $9,5 million ... Vent-A-Hood o.l Ca. has opened a 7,000 sq. ft. distribution and design center in Hayuard.Ca....

Branson-Cross Luntber Co.. Union City, Ca., has bought land in Lathrop, Ca., with construction of new facilities due in the spring . Blue Lake Forest Pradr/cls is a two mo. old firm being operated by Bruce Taylor at the former MacNamara & Peepe sawmill in Arcata. Ca.

North American Lumber International, Ltd. is a new Portland, Or., co. organized by Cary Rose, formerly with Niedermeyer-Martin .. . California Redwood Moulding Co., Sacramento, Ca., has leased mfg. facilities from River City Moulding.

Anthony Industries, City of Commerce, C?., has acquired Finestone Coatings from Finestone Corp., Detroit, Mi., for its Simplex Products Div. . . . Kohler Co.'s Sterling Faucet Co. plans to buy Owens-Corning's Fiberglasreinforced-plastic components div. for an undisclosed price

Housing srarts in Oct. (latest fies.) dropped to a seasonally adjusted annual rate of 1,648,000 units... single-family starts edged up 0.506 . . multis dropped 1.8%. permits were down 2.90/t . .

lPlease turn t() page 411

We at San Antonio feel strongly that quality has to go into a building from the start. Quality is an integral part of our buildings, not something that is added later.

The quality of a San Antonio building begins {rom the ground .rp . . literally. From the first step of construction until the last, our crews are guided by a quality control program that is part and parcel of everything we do.

One definition of quality is ttconformance to requirements." We like this definition because it means we can completely fill our customers' re. quirements while main. taining the standard of

quality that is the hallmark of all San An. tonio buildings.

Please call us when your needs include a quality building to fill your requirements.

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DECEMBER

Dub's Ltd. - Dec. 12, goll Richmond Country Club, Richmond, Ca.

San Joaquin Valley Hoo-Hoo Club - Dec. 13, Cal Bowl game & tailgate party, Fresno, Ca.

Kitchen/Bath Industry ShowDec. 14-16, sponsored by National Kitchen & Bath Association, Convention Center, Anaheim, Ca.

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

JANUARY

Coast to Coast HardwareJan. 4-7, spring/summer merchandising show, Cashman Convention & Sports Coinplex, Las Vegas, Nv.

Lumber Merchants Association of Northern CaliforniaJan. 10-11, top management seminar, Asilomar, Ca.

Western Wood Products AssocirtionJan. 12, district meetings: Sheraton Airport, Portland, Or., and Coeur d'Alene Resort, Coeur d'Alene, Id.,; Jan. 13, Riverhouse, Bend, Or., and Valley River Inn, Eugene, Or.; Jan. 14, Host International Hotel/Airport, Sacramento, Ca.; Jan. 15, Red Lion's La Posada, Phoenix, Az.

Mountain States Lumber & Building Material Dealers AssociationJan. L2-16, residential framing lumber estimating and speed estimating seminars, Denver, Co.

Dub's Ltd.Jan. 16, golf, Marin Country Club, Novato' Ca.

National Association of Home BuildersJan. 16-19, annual convention, Dallas Convention Center, Dallas, Tx.

Humboldt Hoo-Hoo ClubJan. 22, annual crab feed, Eureka Inn. Eureka. Ca.

FEBRUARY

National Wood Window & Door AssociationFeb. 7-11' annual meeting, Inter-Continental Hotel, Maui, Hi.

International Furniture & Woodworking Industry ExhibitionFeb. 7-16, Accra, Ghana.

Dub's Ltd.Feb. 20, golf, Claremont Country Club, Oakland, Ca.

National Association of the Remodeling IndustryFeb. 26-28, annual convention/exposition, Washington, D.C. Convention Center, Washington, D.C.

MARCH

Forest Industries 19E7 Clinic & Machinery ShowMarch 4-6, Memorial Coliseum, Portland, Or.

International Hardware Trade FairMarch E-10, Cologne, West Germany.

National Home Center ShowMarch E-l1, sponsored by Vance Publishing Corp., McCormick Place, Chicago, Ill.

fohn Diederich - fudy Murphy

Lee Tumer - Gordon Roby * Maff Stanley

Western Wood Products AssociationMarch 17-20, spring meeting, St. Francis Hotel, San Francisco, Ca.

Loss Prevention ConferenceMarch 18-20, sponsored by Home Center Institute, Embassy Suites Hotel, Orlando, Fl.

Woodworking Machinery & Supply ShowMarch 28-30, Toronto, Canada.

HOME GENTER MERGffiANT

Bill Fishman & Affiliates

11650 lberia Place

San

Diego, Qa.9212E

(Since "A Nobody Asked Me. But" column of several years ago attracted so many comments, Bill Fishman is repeating the format with comments anticipating 1987-ed.)

oroo" asked me. but:

Those highly promoted low price guarantees and club membership cards that were so prevalent last year will be discontinued by many of the home centers.

Building material dealers are surprised to find that industrial and commercial buyers react to advertising and promotion directed specifically at them.

'

Independent dealers are getting stronger as the major chains absorb one another. These dealers will find ways to retaliate against their suppliers who sell directly to builders and contractors.

Enthusiasm will sell more products than product knowledge.

If there are lots of printed signs in the store that begin with the words "no" or "don't" you can bet that the sign-making equipment is under the jurisdiction of the store manager not the sales promotion manager.

o The sale and rentals of "How-To" videos will reach its peak within the next twelve months.

The shift has started. There is more available management talent than there are positions available in the home center and building material industry.

Independent retailers still do a poor job of utilizing and administrating cooperative advertising funds.

Invariably, the counterman who produces the largest volume also offers the biggest discounts.

Point of purchase audio/visual equipment will be sabotaged if it is not strategically placed out of ear shot of the selling stations.

Lost sale slips (want cards) will supply a home center with almost all the research needed about fast moving and newly introduced merchandise.

o The theme "Once in a Blue Moon" is the second best promotion in the home center industry. Grand Opening is still the best.

o .A store"r ide sale of'f'ering -i01[, oli' eVer) thing in the storc u'ill bring in l() times nrore traffic than 20'X, off.

.\ honre center that doesn't havc a lriglr cr cning traffic count is in l poor retail Iocation.

Prol'essional speakers are more cntcrtaining, but I learn more from rctililer punclisls.

Iletailers who arc not enclosing stufl'crs u'ith their nronthJl statcnrents urc *asting 22c per custonrer per nronth.

Nlost honre center aclrertrsing now connotcs a scnsc ol urgcncl.

The ar.ailabilin of installllion will be an important and prolitablc scrr icc offered b1 building nrateriul dea lers.

Nc\\ computer technology will makc it cost cffective for building material clcalcrs to offer blueprint take-olf scrviccs.

Intercst rate bu1'-dow'ns rvill spark big ticket packagc salcs next 1ear.

,\t lcast onc hor.r.rc center \\'ill derclo;t lt :;tlcr lrr{rnt{rtion Lilntpaign that docs not l'clture lrroduct prices. Thc ads u ill be dirccted at the most alflucnt nrarket and promote thc loe:rlions. seleetion. priting polio. services and the eclucational and fun aspcct of'shopping their stores. I he .tds lrrrr c conlinuitr and n'ill be gimnticky. east to read. The promotion will be successful.

J'hc t\\,o biggest profit contributrtrs ncxt Vear will come from kitchens ancl winclow treatment products.

R'1 .\ (reacly-to-assenrble) f.urniture will bc thc largcst new volume produccr tor nranl honrc centcr charns.

In spitc ol' incre usecl conrpetition lionr uurchousc opcrators. resourcelul honrc ccnter operators u'ill register thcir best prolit lcar in

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THE SOUT

WAYNE GARDN ER executive vice president

QourHeRN California is fortu- lV nate to have few problems with fraudulent grade stamps because of stringent observance of codes requiring the use of grade stamped lumber.

The industry as a whole is fortunate to have the American Lumber Standards Committee to oversee all grade marking. Their involvement makes the grade stamp a truly significant assurance of quality to the consumer. All retailers should ask for lumber which is grade stamped by an ALSC certified agency.

I have been a member of the ALSC representing retailers since 1965, but the importance of its work was reinforced in my mind during the Nov. 7 meeting in New Orleans, La. Reports were made of fraudulent grade stamps turning up in both the east and the

south. Fortunately, no such problems have been reported in the west.

The Southern Pine Inspection Bureau has had a number ofsuch cases with substantial impact. One grading agency reported over l0 million board feet graded with a fraudulent stamp.

In the discussion of methods of control, it was pointed out that building codes are not always a reliable control since some areas in the south don't have codes. Also, because the fraudulent stamps are deceptively similar to the genuine stamps, it is difficult to recognize lumber which has been fraudulently grade stamped.

An education program to be taken by the agencies to the builders, building officials, retailers and lending institutions was discussed. Southern California initiated a program of this type 30 years ago with success.

In other action, the LASC voted for an increase in fees from 1.50 per thousand bf to 1.750 per thousand bf. This

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cost will be paid by the grading agency to cover the services of the ALSC certification and inspectors in the field.

Don Lee Davidson was elected president of ALSC. Other new officers are Jack Rajala, vice president; W. F. Hammond, treasurer, and T. D. Searles, executive vice president.

The LASC annual meeting which was taking place in Palm Springs at presstime will be covered in depth in the Januarv issue.

Thol's How lt Goes!

"Just keep your eyes shut! "

The Merchant Magazlne

E.J. JOHNSON executive \ vice president

ASED UPON a random survey of members, I can provide the following comments on "business in Arizona1986 style."

In general, the Arizona market continues to be strong, based mainly upon

Currentlv utilized to:

r Precision End Trim I Double End Trim o Pencil Trim

Convert Discounted Lengths into Prime Movers

r Crosscut - Efficiently, lnexpensively and Precisely

o Manufacture: Pallet Stock, Fencing, Trusses, Ties.

Bedframes, Shelving and Stickers

Equipment operating, or scheduled for operation, in:

United States: Minnesota, Michigan, Maryland, New York, New Jersey, Ohio, Illinois, Missouri, Kentucky, Virginia, North Carolina, South Carolina, Arkansas, Georgia, Florida. Alabama. California.

population growth. Current data places the state's population at 3.3 million people, an increase of almost one million since the mid seventies. Arizona is definitely in "sun-belt country" and Phoenix and Tucson are most certainly "sun-belt cities." Maricopa (Phoenix) County continues to reap the greatest percentage of growth with roughly 570/o of the state's population followed by

g5o/o

Pima (Tucson) County, a distant second, at 200/0. Much more modest growth is also occurring in areas around Flagstaff, Verde Valley, Prescott and Yuma.

The net result to the state's lumber business has been two-fold. First, a lot more lumber is being consumed and, second, a lot more competition has arrived on the scene. The latter factor more than any other has had the most profound influence on the business climate this past year. Most wholesalers who responded to my survey reported that the volume of lumber sales was either up over the previous year or not significantly different. Most agreed, however, competition is so tight that profit margins are continually squeezed to the point that they unjokingly accuse the competition of "giving it away."

v{i,

iiitiijtiijniiiiliW.,i

Many companies also admitted that they have had to redefine their "bottom line" of profitability many times throughout the year. In summary, in the wholesaler's portion of the industry, it seems that there is enough business for everyone to maintain some "acceptable" degree of market share, but they wish that the days of cheaP lumber would be numbered. However, some companies report that their market shares have been actually increased over the past year, as well as their margins, by aggressively redehning that portion of the market they considered their best.

Lumber retailers were equally in agreement as to the factors of tight competition and reduction of profit margins throughout the year. Sales volumes in many building materials centers, while not reflecting an appreciable growth, did experience shifts in sales percentages of more lumber to other merchandise. The practice of drop shipping of lumber plagued many retailers around the state.

PRECISION CROSSCUT STATION

For a detailed information pack, contact: Sam Rashid The Merchant Magazine

Profit margins on so-called "trinket sales" continue to be severely depressed as a result of the presence of mass merchandisers in the metropolitan areas. All in all, retailers generally expressed relief at getting through the year as well as they did. The difference between them seemed to be the level of aggressiveness that they choose to employ in getting more customers into their stores.

Notwithstanding, a common problem with everyone was the identification and determination of credit worthiness of customers. This is a problem that continues to plague everyone in the business. In the words of one typical survey respondent, "it's damned hard to make a good sale and you hope and pray you get paid for it on

It's Parr Lumber Company's llt Christmas

Betsy Bendix

Lynn Bethurum

Mary Lou Briseno

John Brown

Miles Butterfield

Maureen Delaney

Tony Fredrickson

Scott Green

Scotty Halliday

Jim Hand

Richard Harvey

Jim Hynick

Mike Johnson

Curt Karstrom

Joe Kayda

Mike LaDuke

Jim Lawson

Robert Malone

Jeff Manning

Paul Miller

Lee Marlatt

Janet Parrella

Mike Parrella

Peter Panella

Frank Pharr

Bill Pritchard

Bob Pritchard

Francis Rich

David Sclimenti

Melinda Taylor

Gilbert Tonez

Frank Via

Pam Winters

WallyWolf

GARY L. SMITH executive vice president

I N rHe ERA of the buying group I and the co-op your friendly lumber/ hardware/building material trade associations have done some heavY dutY soul searching and self examination. There is enormous pressure on these groups to identify the types ofproducts and services they can provide their membership that the for-profit organizations mentioned above don't, won't or can't offer as efficiently. We must either do enough things better to remain viable, or resign ourselves to declining membership and eventual extinction. There is another group that is wrestling with that same problem and retailers canand probablY should - help them find their niche.

Does anyone remember the bad old

days of gypsum board and hardboard allocations? Those were some fun times - trying to meet the needs of your loyal customers, covering bids, wondering if you should even try for the next job that included quantities of those commodities. Similar happenings crop up now and again with insulation, redwood, cedar, and other products you rely on to stay in business. What do you think of first when you remember those times? I hope it's a who and not a what, because in many cases it was an individual or an organizationnot a thingthat got you over the hump.

The independent wholesaler, that broker, reloader, free spirit, good old buddy ofyours, is feeling the pinch and you might be able to return some of the favors he did trying to keep his loyal customers supplied during the bad old days mentioned above. He's also the source of those mixed trucks and

decent tallies you appreciate getting once in a while. One of these days you may have to decide whether or not he is going to stay in business; and the determination is going to be based on whether or not the services mentioned above are important to you.

We'll be the last ones to suggest you turn your back on co-ops and buying groups; that may be one ofthe quickest roads to early retirement available today. But you may want to give some consideration in the process of buying right to shoring up a segment of the industry that has provided valuable cohesion and support in the past. You hope that something extra you provideservice and consistency - brings your customer through the door in spite of the competition. Your suppliers need a more than occasional dose of the same.

Future Dates

Check our Calendar on page 20 tor information on upcoming conventions, meetings and trade shows in your region.

OPERANNG OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Daffas, Tx.75243

fi ffneflNG data was collecred

V from I 85 dealers and chain outlet managers in a recent Northwestern Lumbermen's Association survey. Hardly enough replies for statistical validity, but certainly indicative of the opinions and thoughts of your functioning kindreds. Here's a bit about them and what they forecast for 1987.

Annual sales volume of 119 of the dealers was less than a million dollars annually. An additional 41 operators did more than this, but less than three million. The other 25 reported from three to over 50 million.

Financial planning received no comment from eight companies. Seventy four reportedly did financial planning each year, but 104 made no financial plan. For 1987 single yards anticipating increases averaged them at 8.10%.

Chain or branch store managers expected 5%o increases on an average. Single operators expecting losses averaged them at 11.680/o and the multi-units at 12.450/0.

Respondents were asked to evaluate growth potential for the next three years from a low of 0 to a high of 7. Store size expansion, yard remodeling and additional locations were heavily weighted toward the lowest potential in terms of contributing to future growth. Increased advertising, additional services, changing market focus, increased market focus and changing market were expected to contribute to growth. Fifty thought new and additional services were important to growth. Changing market focus got a combined 5l votes. There were 47 supporters of increased market focus and 45 believe changing market would contribute to potential growth during the balance of the 1980s.

A second area of the survey asked each respondent to list the first and sec-

ond most important obstacles to development of an acceptable ROI in their company. Competition and economy led the list of obstacles with general generated expense and collection problems next. Lack of capital and unprofitable lines were virtually tied for third place.

A third area asked for the origin of greatest competition during the next three years. The three options were mass merchandisers, marketing by existing competition and new competitors. Mass merchandisers and marketing by existing competitors were leaders. New competition trailed at the bottom.

This information serves as a look into what others in the business, who may well have problems and opportunities exactly like yours, are thinking. For years the idea has been that the basic difference between the successful retailers and also-rans is in three areas: the ability to control expense, to implement cost effective change and to sustain offering of growth opportunity. Being reminded of these may help as you wrestle with the future.

If you would like our free Thrival (contraction ofthrive and survival) list of the top 20 areas doing the most profit damage during 1986, send us a stamped, self-addressed envelope.

Are You Absolutely Sure You Are Buying your Building Materials Right?

If you have ever asked yourself - Am I Cornpetitive? or Am I absolutely sure I buy my Building Materials and Hardwore right? Then you need C.B.S.-Central Builders Suiplies Company.

C.B.S. can take the guesswork out of buying. Since 1937, C.B.S. has been helping indepen- dent building material dealers remain competitive with mammoth corpor;tio; chiins. Because C.B.S. is a dealer owned non-profit corporation, all discounts, rebates, datings and advertising funds are all passed directly to the participating members.

C.B.S. Offers You

*C.B.S. has been nationally recognized as ,,The Place To Go To Buy Low"*

* As you buy more the cost to belong goes down-not up

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Central Builders Supplies Company

215 Broadus Street Sturgis, Michigan 49091

Phone: (616) 65 I - 1455

*C.B.S. was featured in the October 1984 edition of

These Advantages

* C.B.S. is dealer owned

* C.B.S. has a state-of-the-art internal communication system with participating members

* C.B.S. Rebates are paid to the members in cash

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* C.B.S. operates as a non-profit company

* C.B.S. members share in the cost to oDerate

Heodquarlers./0r rhe

Allied Building Centers

Transition seen in 87

By Joseph T. Theby, Jr. President National Building Materials Distributors Association

1 987ift?xl'"1:,:?",?:

The continuation of reasonable (compared to other recent times) mortgage lnterest rates, minimal escalations in the cost of building materials, the fairly neutral impact of the federal tax law on single family housing, and a continua-

tion of very little negative media input into the thought processes of prospective new home builders and buyers should at least give us an opportunity for another decent vear.

Building material distributors in general are beginning to understand

and cope with the changes that have taken place in their marketplace. New entrants offer opportunities as well as threats. Distributors are finding that they are more and more

Story at a Glance

Building material distributors can expect another decent year. . . biggest challenge to remain strong and profitable. education a major concern and a priority.

included as an integral part of the national marketing of certain product lines and are serving customers

that were recently perceived to be threats. As time goes on, they will even figure out how to make money on lower margins apparently available in this type of business.

Our biggest challenge is not going to be how to remain an important player in the marketing of building materials, but rather how to remain strong and profitable as an important player.

The National Building Materials Distributors Association, in the development of its strategic plan, emphasized for its membership that education is the kev word. The education of supplieis, customers and our own personnel is a major concern and will be a top priority of our association in the years to come. Our members must become more positively aware of their value in the marketing channel and be able to bring their suppliers and customers to this same awareness.

At the same time, we must educate ourselves in the area of productivity of people and assets. This is our key to the financial strength that we must maintain if we are to continue to reliably serve our markets, to invest in new product lines and new customers in the years to come.

We look forward to 1987 as a year of continuing transition and a settling in the marketplace.

Rosa, Dave Snodgrass, steve Hagen,

Tom Knippen, Dave ponts,

John Souza, Steve Shudoma

.

Pressure treated sales slowdown

By Chad Niedermeyer President Western Wood Preservers Institute

AnfEn having increased

Fl almost 6000/o from 1975 to 1985 and becoming the fastest growing portion of the lumber industry, sales of pressure treated wood are expected to hold in 1986 at the record breaking level of 1985.

In 1985, totals kept by American

Wood Preservers Bureau (which are estimated to represent 650/o-700/o of total industry sales) showed lumber sales of almost 2.8 billion board feet. This was 0.6 billion (or 270/o) more than in 1984 and 0.2 billion (or nearly 80/o) more than was forecast for 1985. Performance like that

needs to catch its breath eventually, and it looks as if that's what's haPoenins this vear. '

Th6re ar6 a lot of pressures for continued growth, and it's reasonable to expect pressure treated wood sales to resume growing, beginning in the second quarter of 1987, but at a more modest pace. The AWPB total should approach 3.0 billion board feet.

Through September of 1986, AWPB figures for plywood sales show an increase of almost I l0lo over the same period in 1985. Assuming no radical difference in the respective fourth quarters, plywood sales should reach 60 million board feet by year-end. Plywood can be expected to continue as a healthy growth seg-

Story at a Glance

Treated wood sales catch breath after record breaking growth... 1987 sales expected to continue at slower pace. Western market bet' ter than national as a whole.

ment in 1987, perhaps reaching 63 million board feet, because of increasing usage in new residential construction, remodeling and for industrial uses. Sales of foundation lumber and plywood are both down in 1986 as the industry has softened its emphasis on the Permanent Wood Foundation. For this relatively small segment, we might expect 1987 sales reported bY AWPB to be on the order of 13.3 million board feet of lumber and 17.2 million square feet of plywood.

The slowdown in growth of pressure treated wood is a reflection of uncertainties in the economy as a whole. The slowdown should be onlY temporary, however, since the same factors that have been encouraging srowth are still at work.

- Builders continue as an important element. Consumers are increasingly aware of what pressure treated wood can do for them. Treaters and industry groups like Western Wood Pro-

ducts Association, American Plywood Association and Western Wood Preservers Institute continue to work with lumber dealers, educating salespeople and resassuring consumers on EPA safety issues. Retailers continue to promote pressure treated wood and are selling it better in a yearlong market.

The outlook for pressure treated wood sales nationwide is promising overall. For the Western U.S. the outlook is a little brighter as all market forces continue to take advantage of opportunities in both residential and nonresidential markets.

Slow Sales Growth In 1987

Sales growth of goods will lag during 1987 as consumers pause from their torrid spending pace begun in 1983 with retailers mirroring these unimpressive results, says James Newton, president of Economic Perspectives, Inc.

For example, lumber yards should post an inflation-adjusted sales jump of about 180/o in 1986 with 1987 anticipated sales improvement plunging to about 2o/0. Home supply stores will also slow from the 1986 pace with real sales growth of about 3ol0.

Newton bases these predictions upon the assumption that the U.S. economy will continue along its slow growth path through the end of 1987. He forecasts a short and shallow recession by 1988.

New O'Malley Charge Card

O'Malley Lumber Co., Phoenix, Az., is establishing a private label credit program from Bencharge Credit Service for customers at its 18 stores in Arizona and Texas.

"The program provides us with our own in-store charge card and also administers all our billing and collection procedures. Our customers receive a higher credit line than most bank cards, and we have the convenience of dealing with a local office, " said Jim Sullivan, O'Malley's director of credit.

More retailers are using this type of credit to enhance their image, promote cross selling and build customer loyalty, according to Richard Klesse, vice president, Bencharge Credit Service.

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 put this complete capability to work for you. Call today:

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vnnvTHING in general

E seems to be low. We have low inflation, low productivity, and low economic growth, but constructionactivity has been relatively high when compared to the last few years. General economic indicators con-tinueto be weak, but there is no conclusive evidence of a near term downturn. The numbers aren't bad, but we lack enthusiasm or vigor.

What will be the effects of the tax law? No one really knows. Will there be a meaningful shift in after tax income toward the low income, middle income or upper income segments of our population?

The best guess is that the middle income group will be the greatest beneficiaries of the tax reform package which bodes well for the future of home building. This large group of consumers, if they choose to, can be the stimulus for a continuation of our present housing activity, particularly in single family dwpllingsat worst, 1987 could be off l0o/o from the 1986 starts.

Enthusiasm lacking

By William E. Baugh William E. Baugh & Associates

As we focus on lumber and other building materials we will continue to see the results ofover production which will cause short cycles of price volatility and occasional dislocation of inventories. Inventory accumulation at points of production and distribution and management's desire to control them will contribute to price confusion.

There is a strong possibility that

Story at a Glance

Weak economic indicators over production of lumber will affect prices as will inventory accumulation . . . higher interest rates. . . healthy building and remodeling active, competitive market.

interest rates will be on the rise. Interest rate sensitivity and its impact on home buying psychology will no doubt continue to rule many purchase decisions. However, it is likely that inflation fears will be helpful in offsetting buyer resistance. We also have learned a lesson from the automobile people regarding the creation of sales through so-called "bargain" interest rates. If things slow down, builders will again "buydown" mortgages and offer low interest rates as a stimulant to closing.

Building and remodeling should continue to be healthy except for three or four isolated areas. As homes are built our industry will continue to be active and competitive.

For those managers who can

(Please turn to page 68)

XPENDITURES for residential alterations and repairs appear headed for another new record in 1987. Dollars spent for this purpose have increased every year for the last 20 years except in 1982. Last year they topped $80 billion and should reach at least $82 billion in 1 986.

The outlook for 1987 is a 6% to 7olo increasebringing the total market close to $88 billion. Some significant changes are taking place in this market. While spending is up across the board, there has been greater emphasis on maintenance and repairs and somewhat less on additions and alterations.

Several studies have shown that repair and remodeling expenditures are concentrated in the first few years of residency ln a home. Existing home sales have been edging up

Record remodeling in'87

By William T. Hausle Director, Market Planning Gold Bond Building Products

for the past two years from an annual rate of 2.7 million units to over 3.5 million units. This should provide a solid foundation for increased R&R expenditures as new owners make their homes more livable.

Last year saw expenditures on rental properties increase by 290/0.

Story at a Glance

R&R expenditures close to $88 billion...greater emphasis on maintenance and repairs. gypsum wallboard use expected to increase 10o/o.

This was three times the 9o/o increase in spending for owneroccupied homes. All signs point to this shift continuing for the next few years because of the growing surplus in apartments.

New apartments are being built faster than the demand for them is growing. And investors are rushing to complete units before the less favorable tax laws go into effect. Apartment vacancy rates hit an alltime high during 1986. Owners of older units will continue to spend more money on malntenance, upgrading and improvements to encourage tenants to stay in this renter's market.

Gypsum wallboard usage in the

(Please tum to page 68)

WesternSoftwoods, Mouldings & Millwork Agriorfturaf Wood ProduGts, Pl5nuood, Particleboard

Ponderoaa Plne, Sugar Pine, Hem-Fir, IDouglas Fir, Cedar and SI-P-F

LIIIVIBER: Robert Glatt' division mgr., JimHaas.

MILLWORK: Richard H. Mills (sac.a'e.to)

G.W. "Tack" Baker (el pu".)

Rosie Lopez

Exclusive sales agents for MCG Picture Frarnes €p Millwork Inc.. El Paso, Tx.

IVe are also pleased to be a West Coast area distibutor for CF€+I steel products as well.

BERGER & @MPAI\TY .' ta Conagra companyl J&ne IS -+\ L\TER\-.{TIO}--{ lCOMMODITIF,S TRADING ORGANZATION WITH OFFICES IN: San Francisco, Ca. (headquarters); Chicago, Il.; Colfax, Wa.; Fargo, N.D.; Filer, Id.; Grand Cayman, British West Indies; Santiago, Chile: London, England; Geneva, Switzerlandl Nicosia. Cyprus; Buenos Aires, Argentina; Moose Jaw, Canada; and Taipei, Taiwan.

Quick Quotesfor1987

A random sampling of ideas and opinions

"Housing had been one of the keys to growth. It's not going to be an engine of the economy as much anymore."

Maury Harris Chief Economist Paine Webber Inc.

"Housing is still a cyclical business . . a gradual tapering off in housing starts in the coming months."

John Tuccillo Chief Economist National Council of Savings Institutions

"1987 total starts will drop 160/o nationwide: single family itarts down 8% and multifamily down 2l%' All regions should see a decline: a 120/o drop in the Northeast, l7% drop in the Midwest, 130/o in the South and 8% in the West."

Michael Sumichrast Senior Economic Advisor National Association of Home Builders

"We are either going to make it in these markets (exports) or not at all."

George Weyerhaeuser President and Chief Executive Officer Weyerhaeuser Co.

"California will replace France as the fifth largest economy in the world at the start of the 21 st century. "

Joseph

A. Wahed

Senior Vice President and Chief Economist Wells Fargo Bank

"Arizona's economy (is) best described as muddling through."

Marshall Vest Economic Forecaster University of

Arizona

"Like everywhere else, New Mexico has too many office buildings, too many health care facilities, too many retail stores and too many apartments."

Brian McDonald Director, Business Research Bureau University of New Mexico

Nancy McCallin Research Economist United Banks of Colorado

(Please turn to page 65)

PERSONALS

Sterling Wolfe, Marquart-Wolfe Lumber Co., Tustin, Ca., and his wife, Loraine, are on a l3 day Southeast Asia cruise that includes Singapore, Bali, Sumatra and Thailand. They are also grandparents again with the birth ofJoanathan Charles (10 lbs. I oz.), ocrober 26, 1986, to son Charlie Wolfe and his wife Sandy.

Ray Stephenson, mgr., Mendo Mill & Lumber Co., Ukiah, Ca., has been elected pres. of the Black Bart HooHoo Club of Ukiah. Other oflicers are Jackson Finck, lst v.p.; John Blatchford, 2nd v.p., and Tony Burke, sec./treas.

Cordes Langley, Redwood Coast Lumber Co., Ukiah, Ca., is back from a vacation trip to Hawaii.

Roy Nielsen, Coast Wood Preserving, Ukiah, Ca., is recuperating after a serious auto accident last month.

Chet Gonczeruk is now sales mgr. for Louisiana-Pacific Corp.'s remanufacturing facilities in Chico and Red Bluff. Ca.

Norm Matthews, Union City Lumber Co., Fresno, Ca., and his wife, Jan, are back after a recent vacation to Disneyland.

Dan Naughton has been named gen. mgr. of Redwood Empire, Inc., Morgan Hill and Cloverdale, Ca., according to Roger Burch, pres.

Jim Smith is the new western reg. sales mgr. for Klean-Strip div. of W.M. Barr & Co.

Paul N. McCracken, pres. and c.e.o., Tumac Lumber Co., Portland, Or., has been named a director of Willamette Industries Inc., Portland, replacing Maurie D. Clark, who has retired.

Randall Denos, marketing director, Hydro Systems, Inc., North Hollywood, Ca., now is also exec. v.p.

Roy Manion is the new western reg. sales mgr., hardboard and panel products, for Canfor Corp.

Dennis Byerley has formed Clayton Wood Products, Clayton, Ca. Kelly Thompson and Greg Nee will handle cedar fencing products sales at LongTree Ltd. Parnership, Spokane, Wa.

Jeanetta Goshorn, head of shipping/ receiving, Lumbermen's, Redmond. Wa.. was elected November Employee of the Month by her coworkers.

John A. Sebelius has been appointed v.p. of market support programs for National Forest Products Association, Washington, .D.C., rePlacing Gerald F. Prange, who retires at the end of Dec. after 35 years with NFPA, according to David E. Stahl, pres.

John Anderson and Douglas Fullmer have joined LJB Lumber Sales, Portland. Or.. as brokers.

Merl Cappoen is new to sales at Columbia Wood Products, Beaverton, Or.

Dale Voris, Idaho Truss, Meridian, Id., has been elected to the board of Wood Truss Council of America.

Louis Carnevale, Carnevale & Lohr, Inc., Bell Gardens, Ca., has been elected sec. of the Marble Institute of America.

Thomas J. Carey has been promoted to director of sales services at Plumb Shop, Gardena, Ca., according to Charles M. Wellnitz, v.p. of sales.

Tom Alley has been appointed v.p./ operations mgr. of U.S. Plywood Corp.'s Lebanon, Or., hardboard plant.

Greg Ganer has joined Diamond Lumber Co., Meyers, Ca., as mgr.

Paul J. Brough is the new sales rep for Wayne-Dalton Corp. in the l3 western states.

Paul Meyers. Cascadc Ilardwood, C'hehalis. Wa.. has been elected pres. of'the Western llardwood .\ssociation. Other officers include Juel Sheldon. Ross-Sinrmons lJardwood Lumber. Longview. \{'a.. r'.p.. Jack Lundberg, Barton \\'ood Products. Llnnwood, Wa.. treas.. and directors Jim Harrison, Diamond Wood Products. Eugene, Or.: Jim Hunt. Pacific Hardwoocls. Philomath. Or.: Jerr.'- Hanel'. Whittier \d'ood Products. Eugene. and Chuck Robbins. J.E. Higgins [-umber. Sacranrento. Ca, Mort J. Huetter has rctired as v.p. and gen. mgr. ol' I)ianrond Lands Corp.. ll,ed Bluii. ( rr.. continuing in un advisory capacitt. Llol'd Furman succeeds him. according to Russ Carson. exec. \.D. and c.o.o.. ('avcnham Forest Industries. Chris Knapton is nrgr of the new Builders Square in Ilayden Island. Wa.

Joseph F. Kimpflen, director of technical scrvices, Certainteed Corp.. Valley Forge. Pa.. has been elected pres. of the Mineral lnsulation Manufacturers Association. Edward F, Cusick Jr.. Rock Wool Manufacturing (o.. Leeds, Al., is now v.p., and Kenneth D. Mentzer. ussociation exec. v.p., will also serve as treas.

Bob Shook and Fred Hamlin have opcned a sales office fbr llates Lumber ('o.. in ,Albuquerque. N.M. Ed Hasen.rager, pres.. ('olonial Lumber Co., San Mateo. Ca., has nanled his nephews Jim Baly lst r".p. and gen. mgr. of the firm and Robert Baly second v.p. and store mgr. Ed continues full time and alternates long weekends with his wil'e Frances Baly at their second homc in Carmel. Cla.

Sid Carlson is new to sales at Suncrest l:orest Industrics, White Cin. Or. Ed Martinson has retired as lumbcr mgr. lor Chanrpion International Corp.'s nrill in Niissoula. \1t.. aftcr nlan) )'ears uith the co. Mark K. Baldwin is the new product mgr.-doorskins Ibr Masonite Corp.

Frank Quattrocchi. South Bay Lumhcr ( o.. Orange. ( rr . is recuperaling,rt Irome lfter opcn heilrl surger!.

L.S. "Skip" Kreidler is the new director of training for CooperTools. accorcling to Frank Tooke, v.p. of marketing.

Jerry L. Hogie has joined the manufacturing staff of Morgan Products Ltd.. ( )slrkosh. \^ i.. as engineering mgr. M ichael Carl is nou controller fbr operations in Weed. Cla.. and Springfield. Or.. and J. G. LaCroix is v.p. and gen. nrgr. of Morgan Distribution. according to George T. Broph.v-. pres. and c.e.o. Gordon Martin. N{artin Irorest Industries. Healdsburg. Ca,. served as chairman of'thc San ['rancisco. Ca.. regional mecting for NAWLA. Jim Frodsham. South llay [-'orest Products. Orange, C'a.. was chairman for the Los Angeles area. and John Barrett. tl .S. Plvrvood Corp.. Eugcne. Or.. for the I'ortland sector, Claire Vo1-ent has been hired by Hugh Mungus and Freddl' Fungus, irlungus-Fungus [:orest l)roducts, ( linrax. Ni'.. to project fulure sales 1 rc n cls.

MORE PERSONALS

(Continued from previous Page)

Ernie Warns, chairman, Sequoia Supply, Fairheld, Ca., has retired after 38 years in the industry.

Jim Meyers has joined the sales team at Tumac LumbcrCo., Portland, Or.

Charles Grenier is the new v.p. of forest products at Plum Creek Timber Co., Columbia Falls. Mt.

Gerald A. Jewett Jr., vice chairman and c.e.o., Gilcrest/Jewett Lumber Co., Des Moines, Ia., has been elected pres. of National Lumber & Building Material Dealers Association, Washington, D.C.

Thomas Gaeto is now branch mgr. of United States Testing Co., Modesto, Ca.

Gene Connor, reg. mgr., Manville Corp., Denver, Co., is celebrating 25 years with the co., joining its Quarter Century Club.

PACIFIC FOREST PRODT]CTS, //fC,

Norm Sielken has been promoted to chairman ofthe board ofThylor Lumber & Treating. Inc., Beaverton, Or. Barney Olberg succeeds him as pres. Tom Gilstrap is now gen. mgr., sawmill div.

Dr. Kevin C Cheung is new to Westem Wood Products Association. Portland, Or., as mgr. of engineering research and development.

Bob Shepherd is now the new sales mgr. of Louisiana-Pacific Corp., Red Bluff, Ca' Patricia Gould is new to pine commons lumber sales.

Harold Blomberg, pres., Blomberg Window Systems, Sacramento, Ca., has been elected pres. ofthe California Association of Window Manufacturers. David J. Bonelli, v.p., Bonelli Enterprises, San Francisco, is now v.p.; V. Glenn McCoy' pres., Fleetwood Aluminum Products. Inc., Brea, financial officer, and Barry G. Hardman, pres., General American Window Corp., Stockton, sec.

Kent Duysen is the new gen. mgr. of Sierra Forest Products. Terra Bella, Ca. Doug Hanson is sales mgr.

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Martin Growth Honored

Martin Forest Industries, wholesale brokers of redwood and cedar in Healdsburg, Ca., have been named number 246 in the annual ranking of America's 500 fastest growing, privately held companies by Inc. magazine.

MFI increased its sales from $1,038,000 in 1981 to $10,319,000 in 1985, a 8940/o rise.

In order to qualify for Ihe Inc. honor, a company must be an independent, privately held corporation, proprietorship or partnership with l98l sales between $100,000 and $25 million and have a five year operating history that includes an increase in 1985 sales

George Gendron, Inc. editor, said, "We at Inc. salute (MFI's) accomplishment and the hard work and dedication it took." The magazine will honor winners with an awards ceremony, reception and black-tie dinner in May at its annual conference, which also features seminars, roundtable discussions and special speakers.

MFI president Gordon Martin,

who plans to attend the ceremony with his partner Gary Malfatti and their wives, said, "We've worked very hard during these years, and it is indeed an honor to be chosen and ranked alongside such prestigious firms."

Vice president Malfatti added, "l'm very proud of our organization and hope we can keep the momentum going."

MFI ranked number 44 of 79 California firms recognized. The only other wood products-related winner in the West was Performance Coatings, Ukiah, Ca., which placed number 210 as a manufacturer of clear wood finish.

Its Penofin products include a wood finish line that has enjoyed wide trade acceptance. The firm is headed by John Mayginnes.

Lumber Duty Response Seen

When the United States government imposed a 15% countervailing duty on Canadian softwood lumber entering the U.S., it was widely predicted that the Canadians would quickly retaliate with a duty of their own on U.S. products.

It didn't take long. On November 7, 1986, the Canadian government announced a $l per bushel duty on American feed corn imports. Canadian government spokesman Denis Comeau said there was no relationship between the two decisions. "The two are simply not linked. This decision was based on the merits of the evidence presented," he said.

U.S. Agriculture Secretary Richard E. Lyng said that he was "astonished and dismayed" by Canada's action. Lyng denied that U.S. corn exports to Canada are subsidized.

When the U.S. lumber duty was first announced, several high Canadian government officials warned that retaliation would be swift and in kind.

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 &re col'r' stantly adding to our selection of western red cedar, pine, hemlock and white fir. Other species and specialty items are inventoried and included in our weekly flyer sent to all Fremont customers.

NEWS BRIEFS

(Continued from page 18)

Owens-Cornr'ng is phasing out distribution supply centers in San Leandro, Ca.; Phoenix, Az; Seattle, Wa.; Portland, Or.; Boise, [d., and Billings, Mt.; Los Angeles, Ca., will remain open...

Financier Victor Posner (Evans Products Co.) will be tried in April for the second time on charges of evading more than

$1.2 million in federal income taxes; if his conviction is upheld, he faces a maximum 40 year sentence

Construction spending was up I.4o/o in Sept. . . . The FHA will not be sold to private industry as earlier proposed although opera- tions will probably be cut back . . . Consumer confidence has fallen to its lowest level in three years says The Conference Board.

Stanline, 1nc., Norwalk, Ca., issued a 5olo common stock divi-

The Merchant Magazlne

dend. National Lumber & Sup' ply lost l2Q a share in the first half of the year . L-P sales set a new record in 3rd quarter with a 550/o increase in net income National Roofing lleek sponsored @ heAsphalt Roofing Manufacturerc Association will be May 2-10, 1987...Idnho Forest Industies Council, Inte rmountain Fo re st ry S e rvic e s and Inland Forest Resource Council have merged as the Intermountain Fore s t Industrie s As s ociati on, based in Coeur d'Alene, Id., Joe Hinson and Jim Rilev. co-executive directors.

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A s DEFINED by webster's ll Dictionary, efficiency is the quality or degree of being efficient, i.e., efficient operation.

The U.S. economy may very well be dependent on how government takes the lead in improv- ing the efficiency and productivity of the nation. The coming year could be the benchmark period for spending reform. This could create a window of short term gloom from which the light of a long term picture of economic strength can emerge.

Early in 1987, I would expect retail sales to be rather flat as the economy will be sluggish and inflation should not be a factor. Consumers continue to get little good news and consumer confidence should not be greatly improved.

I see little economic improvement until we begin to solve our country's largest economic problem, the continued expansion of the budget deficit. The new tax reform will not have the desired impact on the nation's confidence

The efficient will prosper

By Frank Denny President Builders Square, Inc.

without a decrease in government spending.

We will not really make significant economic progress until we bite the bullet and enact the spending cuts necessary to balance our budget. Over the past 20 years our government has collected taxes at the approximate average rate of l9o/o of the GNP. In 1986, we will spend at a rate approximately 240/o of the GNP. Obviously, to maintain the current deficit, we must spend at a rate equal to the income rate (taxes). To reduce current debt, spending must be brought to a rate

Story at a Glance

Flat retail sales. old rules will no long apply . new concepts, distribution channels, electronic systems to offer more productive operations.

lower than the collection rate to reduce the deficit.

With this action, I believe we will have a short term negative impact on the economy, but it appears Congress is ready to face facts and act on this issue. As our government faced major reform of the income structure of the country in 1986, they now must focus on establishing more efficient spending habits.

In view of the preceding, only those of us who operate efficiently will prosper through these trying times. Old rules do not apply as demonstrated by companies like Price Club, who truly established a new method of retailing. If we measure our own efficiency ratios against the Price Club, we discover quickly that there are more efficient ways of operating than the tradi-

(Please turn to page 62)

NEW PRODUGTS and

selected sales aids

Coloring Mat

A big 36 " x 44 " coloring tablecloth is new from Share'N'Care.

leakage. A flexible molecular bond is formed on surfaces including wood, metal, composites, painted surfaces, concrete, plastics, fabrics and electrical connections.

The anti-slip rubber coating prevents and arrests attack by acids, alcohol, caustics, chlorine, brine, sea water, rain water and sunlight.

Liquid containers of 4 oz. with brush in cap, aerosol cans of 6 and12.5 oz.,and larger quart, gallon and 5 gallon cans are offered. There are seven colors plus special colors.

Keep An Eye On The Fire

Special wipe off, non-toxic crayons are included along with a long lasting sponge eraser. Designs include a variety of iuvenile themes.

Transparent Coating

A new family of Tech Shield rubber transparent coatings for protecting objects against deterioration has been introduced in new colon, sizes and a higher viscosity formulation by Brook Tech.

A monitor that records the tempeftlture of a woodburning stove from anywhere in the house is new from Inventex Inc.

Ihowing how hot the flue is can permit raising or lowering the temperature to maintain an even, economically burning fire to save wood, time and energy. \wl|cq,

Bright LED's show the approximate flue temperature and tell whether the fire is getting hotter or cooler. An ear piercing alarm sounds when it is getting too hot to avoid a chimney fire or when it is getting too cool to keep the fire from going out.

Pulsating Plumber

A non-chemical drain unclogger from G.T. Water Products uses regular household water to flush sinks, showers and main drains clear of debris.

Applied to surfaces as a primer or a finished coat by spray, brush, roller or dipping, the product protects against water damage. rust and corrosion. ozone. ultraviolet radiation and electrical current

The device also has the capacity to drive a digital telephone dialer, which can contact a central alarm station to send help in the event of an alarm when no one is home.

Drain King works on an automatic, pulsating action that forces water through the surge valve to the blockage. The action continues until accumulated waste is released and flushed through the drain. Guaranteed not to harm pipes, the tool made of durable rubber is reusable. Four sizes to fit different size pipes are available.

Also offered are accessories such as a drain adapter for sinks with crossbars, a faucet adapter, a kit that clears swimming pool lines as well as regular drains, and an adapter kit with hose.

Acrylic [umberStain

A new acrylic formula has been introduced in Muralo's Lumber Jacket solid color wood stain.

The stain is said to feature good hiding characteristics and color retention, fast drying and easy cleanup. The water-based product is available in a wide range of natural colors.

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

Palm Size Siren

A new palm size mini Personal keY chain alaim from Moen's Down East Gifu emits an ear-piercing, high frequency 90 dbs alarm with a Pull of a Pin.

Reportedly as loud as a police sire_n when close up, the noise will scare people away as well as attract attention. The alarm comes in a small protective poly bae which is also a convenient holder.

\hezv, oz. device, measuring 2" x3" x 3'l operates on two size N alkaline batteries which can operate the alarm for up to 30 minutes continuously or used for occasional short periods up to 500 times.

Don't Slam The Door

A deadbolt lock with a built-in alarm system is new from Simpson Hardware Group.

Requiring no wiring during installation, Loudlock is like any other surfacemounted deadbolt. It is powered by a single 9-volt battery.

The alarm is set by turning the key to lock the deadbolt from the outside or by turning the hand-turn knob when locking the deadbolt inside the home. The alarm is triggered by any jolt which moves the bolt.

Design features to prevent false alarms and an automatic setting and resetting capacity are other key components.

Shampoo For Sheepskin

A unique triple action cleansing formula for sheepskin, upholstery and carpeting is new from Meguiar's, Inc.

Its deep foaming action blend penetrates the fabric, loosening and lifting out dirt to remove spots and restore beauty. The treatment can be used on all sheepskin, natural and synthetic, but is not recommended for silk or velvet.

Soft Scrub

A hand cleaner that combines abrasive pumice with soft lanolin for dissolv.ing grease, dirt, tar, gasket cement. palnt. iarnish. putty. pr'inter's ink. adhesives and many other substances without clapoins or cracking the hands is new from 'Quit.r State OiIRefining Corp.

Bar Well

A bar sink with matching shallow drainboard is new from Franke, Inc.

The deep, round bowl is a comPact l8-l/8 " in diameter. The drainboard is l-3116" deep and is ideal for rinsing and draining glassware.

Vtodeli are available in stainless steel or in four enamel colors. Sinks can be custom-fitted with optional drain-tray' teak cutting board, drain basket/plate rack, and a coordinating faucet.

Products On Hold

Holders to stabilize materials such as doors, windows or plywood in an upright steady position so they may be p!ryq' trimmed or hinged are new from B.T.S. Enterprises.

Made of /s" brushed aluminum for strength and lightness, they havg adjustable end pieces with a polyvinyl coating for protection of the materials. The base is covered with two plastic runners to protect the floor surface.

The holder can also be converted into a work bench or shelving.

Keep Out Of The Gutter

Gutter quards which eliminate debris which noimally accumulates in building sutters are new from lrslie-Locke.

The cleaner's active solvent replaces offensive odors with a clean, fresh scent. The balanced formulation contains no chlorinated solvents, alkali or ammonia.

l-adder Holder

A safety device to secure and stabilize portable ladders is new from Ladder Devices, Inc. I-adder Grabber attaches to a ladder and then slides onto nails on a roof.

- With smooth-edged design and aluminum construction, the 5 " and 6 " wide, stainless steel hinged guards provide easy clip-on installation. They are designed to resist ice. sno',v. rust and corrosion.

They come in 3 ft. lengths and conform to box-style and half-round gutters.

Used with or without water, it is available in a 15 oz. can and a 5 lb. waste-free dispenser container.

Retitled Cookware

New, improved enamelware from General Housewares Corp. now has a new name: ceramic on steel cookware.

virtually airtight.It is alsosaid tokeep out bugs, snow, blown water and smoke.

Installation requires no special tools. The vinyl reportedly will not split when nailed and can be glued to metal jambs.

Factory-finished, the product is said never to need painting. although it can be palnted or stained to match iambs.

boxes, closet shelves and elsewhere are new from Geo. C. Brown & Co.

The liners are constructed of l0OVo solid eastern red cedar boards with easy assembly due to their tongue and groov! desisn.

Compared to earlier enamelware, the new cookware is said to better resist chips, scratches, sharp temperature changes, discoloration, deterioration and food absorption.

The line features seven models.

Airtight Garage Door

A new energy-efficient garage door stop has been introduced by DG Mouldinss

Therm-o stop's design is a combination ofweather stripping and a hard and a soft vinyl door stop, making a garage door

For more information on New Products write The Merchont 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 thanks!

Cedar Underliners

Aromatic red cedar sheets for linins drawers, chests, garment bags, storagE

The liners protect woolens, fine garments, blankets and linens from moths and mildew, and they may also line pet resting areas for protection from fleas and ticks.

They are shipped in their own displays for shelf, floor or counter placement.

Brushes Up ForSale

A carousel brush holder for promoting unadvertised specials is now available from Baltimore Brushes.

hook-up to be activated. With the unit installed, the car owner maintains his vehicle's safety via a remote control decoder that's halfthe size ofa ball point pen and weighs less than a halfounce.

Operation of the command module is powered by two 1.5-volt batteries that are included with the unit and its module.

Anti-Auto Theft Lock

A new security device from BluePoint Industries Inc. can prevent car theft, radio removal and towing by locking the car in gear with the parking brake on simultaneously.

Available in both rightrhand and left-hand stvles. the dishwasher safe shears feature stiinles. steel blades and comfort molded plastic handles.

Nickel-plated for added durability, the circular holder features five rotating metallic hooks which angle brushes upward for easier customer inspection. The circular hook system ensures that the right brush is placed on the right hook.

Disabling CarCrime

A mini-size protector that prevents theft by disabling a vehicle's ignition system is now available from Certified Energy Svstems. Inc.

Fully adjustable, Carlock fits most cars with console-mounted gear shifts and parking brakes. Radios are protected in cars with gear shifts close to the dashboard.

They are said to be ideal for cutting and boning fcnvl, meats, fresh vegetables, dried fiuit and garnish, and decorating with pastry and dough.

The shears reportedly can also open all types of "people proof' plastic bags and cardboard boxes, cut toddlers' food into bite-size pieces and provide precision cutting of fat and gristle on meat.

Handle On Cleaning

A heavy duty squeege-sponge with a nylon bug scraper and rubber squeege is new from Koller-Craft Plastic Products.

Made of hardened steel, the device locks in seconds with a unique shroud around the lock cylinder said to make it virtually cut and pick proof.

When not in use, it stores in the glovebox or under a seat. Also included are two-coded keys and a key registration carq.

SupperScissors

Molded of high impact plastic, Kwik Clean also features a2l" Iong wooden handle for extra reach.

Said to be easily installed in any American or foreign make vehicle, it requires a simple, no drilling, four wire

Kitchen shears designed to minimize food preparation and clean-up tasks are new from Fiskars Manufrcturing Corp.

Portable Hot Water Boiler

A hot water heater that can be installed anywhereunder a sink, in a workshop, or garageis new from Thermar Corp.

The Coppercore is simply plugged into an ordinary llO-volt household outlet.

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

Where There's Smoke .

A new line of 120 VAC photoelectric smoke detectors with standard features said to virtually eliminate false alarms is available from Gentex Corp.

Keep YourCool

New innovations have been added to Igloo Corp.'s line of ice chests, such as l/3 more foam in the lids for imoroved insulation.

Its heart is a unique solid copper storage vessel which needs no glass or epoxy liners.

Since it is not subiect to the usual corrosive problems associated with steel tanks. the unit is guaranteed against leaks for 20 years.

Extensive RF and electrical transient protection, 27o nominal sensitivity, full insect screening, a built-in solid-state 90 decibel piezo signal and convenient test switch are all included.

The models are designed for easy installation with a quick disconnect wiring harness and full size mounting plate. Four U.L. models are available.

Other additions to different models include scales molded into the lids for measuring fish; crisp, clean graphics indicating can instead of quart capacity; new designer chest colors, and stylistic packaging with full color wraparound labels which highlight the product being used.

D-l-Y Drainage System

A lightweight modular drainage system from PolyDrain, Inc., helps in such problem drainage areas as driveways, sidewalks, foundations, patios, saunas, spas, swimming pool decks, and gardens.

FolyFlow comes in 4'channels of high impact black PVC, with 2' drop-in channel grates made of structural foam polypropylene available in black, green, gray, sand and brick.

Total channel depth on the outside is 3-314" andthe width at the top is 5 ".

Hot Stuff

Furnace cement from UGL now comes in gallon containers.

The all-purpose silicate cement for making repairs to stoves, furnaces and chimneys can withstand temperatures up to 2000T and bonds to both masonry and metal for use with firebrick and steel or cast iron.

May

The Superior line of hcrrdwood prrneling crndmouldings

mnfi SOUTHERN YELLOW PINE

Southern Yellow Pine ranks in many strength properties as the strongest of softwoods. Long lasting under heavy wear; high bolt and nail holding power; high retention of wood preservatives.

Try o u r wel | -m anu factu red SOUTHERN YELLOW PINE 2x4's! DUTT GIIY

Barnwood Lookalike

A new textured prefinished wall paneling from Masonite creates the look ofauthentic aged barnwood at a fraction of the cost.

Barnstable is mar-resistant and cleans easily with a damp cloth. Details such as pegged random planks, rough grained texture and knot holes produce an old-time country look and feel.

It is available in 4' x 8 ' hardboard panels.

Paneling display for stocking dealers.

Solid oak, cherry, walnut and maple offered at competitive wholesale prices on top qualitv milled stock.

Sitting On TheJob

A home and garden cushion from Nomaco permits comfortable sitting or kneeling anywhere.

to clean, it is guaranteed waterproofand lightweight, and features a built-in handle for easy carrying and storage.

It is useful for weeding, planting or pruning in the garden, scrubbing the floor or painting in low areas.

Available in a variety of colors, the cushion comes in bold four color packaging with bright photography to attract customers' attention and help them visualize it in use.

Tough To The Finish

The beauty of an oil-rubbed frnish has been combined with the protection of modern synthetic resins and hardeners by Daly's Fine Wood Finishes.

For more information on New Products write The Merchant Magozine,4500 Campus Dr., Suite 480, Newport Beach, Ca.9266O. Please mention issue date and Page number so we can process your request faster! Many thanks!

products are said to be especially durable and hiehly resistant to marring from water,;lcohol and abrasions. Only a polish coat is required for maintenance.Thev are suitable lor use on both hard and soft woods in all types ofpaneling, cabinet work, doors and furniture. Finishes are available in half-pints, pints, quarts and gallons, or in five gallon cans and 55 gallon drums.

The unique air-cell cushion is made of double reinforced polyethylene foam for softness and durability. Reportedly simple

Available as a clear finish and in ten stain colors, Ben Mafte Danish Tung-Oil

Topside Twins

Two new patterns ofsuspended ceiling lay-in panels in the 2 ft. x 2 ft. size have been introduced by Armstrong.

and sash mount. All are removable for redecorating.

Each comes pre-drilled with counter sunk holes and is individually packaged in a poly-bag with all mounting hardware included (nickel-plated Phillips head, removable screws).

Oak Phone Jack

A real oak wall iack is new from GC Electronics.

Ideal for use with paneled walls, it allows flush-mounted connection of plugended modular line cords.

Named Plaza and Brighton, the panels are being added to the c6mpany'siow to moderately priced Cushiontone line of washable and acoustical suspended ceilings.

Curtain Care Devices

Clear drape protectors to prevent drapes from blowing out the door and window and to make them look neater have been introduced by Tri-Guards, Inc. Almost invisible Lexan Drape-Guards come in 3 different mounting systems. including inside mount, outside mount

The Oak 4 Conductor Modular Flush Wall Jack can be used for initial installations or conversions from existine wall receptacles.

Unclutter The Gutter

A lightweight, high-strength scoop for quick, easy cleaning of gutters is new from Workins Products Inc.

The flexible polypropylene Gutrer Getter is said to fit all gutters to neatly scoop handfuls oflearies, needles and debris. The 16 " long,3-ll4 " wide and 4-Il4'tall scoop expands to fit wide gutters and squeezes into narrower ones. The extended handle keeps hands away from sharp gutter edges and abrasiv-e shinsles.

Stop That Car

A new car stop to insure consistent parking has been introducedby ACT Laboratories. r\

no force and very little strength. It can also be used to quickly and effectively reseal lids, preventing content loss or spoilage.

The machined aluminum opener features a special handle slot for hanging.

Two models are available: a 2l" tool for 4-7 gallon buckets and a 14" tool for l-3 gallon buckets.

L"et There Be Light Lines

A new Vr " diameter, 12 volt decorative tube lisht has been introduced by Verax Corp.

any tools to suit any garage or any condition.

Now You Can Flip Your Lid

Ig.ttty sealed lids on plastic buckets can be safely and quickly removed with a new bucket opener from Rose/D'eFede Inc.

The tool is designed for maximum opening leverage with

The first transformerless lcxv porver decorative light, it is available in 2, 3, 6, 9, 12 and 15 ft. leneths with invisible connectors. They can be cut to the desired lengtl with ordinary scissors without loss of bulb or lishts.

There. are siibulbs per foot. It is blister-packed with all accessones.

Made of aluminum rods and wood safety blocks that are painted reflective orange, the stop is reportedly set up in minutes without

UtilityToolBelt

A new tool belt from Nailers, Inc., incorporates the strengh and light weight of Cordura nylon fabric with a dense foam material to maximize comfort and durability.

Major pocket stress points are rivet reinforced. Two Velcro attached pockets can be positioned by the user for greatest convenience and fl exibility.

Taped For Traction

Roll-mounted anti-skid tape from W.H. Brady Co. is now available in red, as well as the familiar black.

Made of rugged, long-lasting plastic material, the tape is heavily coated with parlicles of durable aluminum oxide grit to offer sure footing on slippery surfaces. The adhesive sticks firmly to almost any clean, dry, oil-free surface ofasphalt, concrete. tile. wood or metal.

The 60 ft. rolls come in 1",2" and4" widths.

Applying the tape is as easy as peeling off the paper backing and pressing in place.

Free Wheeling Tubs

A second square cart with slide-out front panels of weatherproofed plywood performs bigger chores.

It features three separate pouches, two reinforced hammer loops and 23 individual pockets to accommodate a variefy of tools and supplies. A quick-release Fastex buckle makes the belt infinitely adjustable and easy to put on and take off.

New rugged wheeled products are now available from Kelley Manufacturing.

The two-wheeler contractor barrow is available in a kit which is said to convert any Kelley wheelbarrow into a twowheeled cart.

A brick barrow ideal for masonry and tile has adiustable front braces to accommodate odO-sizeO materials. Also offered are a cross linked molded mixing box and a poly mortar pan.

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

FRAilllllG U1{0ER GLASS lll exact scale miniatures were a popular item in displays at Batibois Show. l2l Innovative prefab wall system has unlimited design possibilities. l3l Ball and socket on wood dowels lor furniture and industrial applications. l4l "Special Connectors for round wood" the sign says in French. l5l l-beams made ol wood and galvanized steel. 16l Computer and extensive software were plentiful. (71 Levis in France is a paint company, not a jeans manufacturer. (81 and l9l Names familiar to Americans.

ll0l Fingerjointed wood moulding. ll I I Displays were both striking and ll2l extensive; shown is the Canadian wood products house. ll3l American-look kitchen cabinets are gaining favor over severe traditional styles. Il4l MacMillan Bloedel was out in force. (l5l Communist Hungary is becoming active in sales of pre-fab homes and building materials; the sign says "Combined wood industries of Western Hungary." ll6l African hardwoods from Ghana. (l7l A familiar name in fasteners.

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International wood products show

f HeRe'S nothing quite like it I in the United States. Or anywhere else, for that matter. Batibois 86, a large international exposition involving everything to do with wood from the forest to the home. was a remarkable gathering, not only for the wide range of new and established wood products and systems exhibited, but as a place for related meetings, symposia, conferences, industry tours and the like.

Story at a Glance

Huge exposition of wood products is also a forum for related meetings, seminars and plant tours. new and innovative European products and systems displayed .. more exhibitors this year for the biennial show.

Backed by the French government, which coordinates the participation of many industry groups in the expo, it drew flocks of business and government VIPs, including Jacques Chaban-Delmas, the president of the National Assembly, who gave the official welcome to Batibois 86.A politician of national stature, he has been widely mentioned as a leading contender to succeed the current French president Francois Mitterand.

Among the new and innovative products displayed were unique metal plate connectors for joining poles and other round wood members to form virtually any size and shape frames. Wood fasteners for traditional framing sizes were also available.

I-beams comprised of a combination of wood and galvanized steel were touted as a quick construction member for walls, roofs and other applications.

One firm showed an ingenious product line of round and square

dowels with balls on one end and sockets on the other. They could be quickly and easily joined to form storage shelves, bookcases, benches, even more elaborate furniture, as well as serving as a skeleton for other uses.

Other firms showed building blocks in various sizes from 2' x 3'

tions, complete with horizontallY grooved siding on the outside, insulation in between and a smooth surface inside for the interior wall. Sections were sometimes cut diagonally at one end for fitting walls together, while others had

/Continued on next page) and up that were entire wall sec-

Fred flirlmes 347O lowa City Rd., Marysville, Ca. 959O1 (916) 743-3269

P.O. Box 800, Fort Brryg, Ca.9)437 (7o7) 964-6377

Steve Holmes, Steve Hautala, Tod Holmes, Phyllis Hautala, Toni Matilla

Hampton's professional lumber traders offer you qualit-y foresi products to meet all your needs. We supply a full range of quality framing items from controlled produc:f 11,3it'oifffi'fi

next lumber order.

W000 H0ilES are still a rarity in France. These four architects' homes in the Bordeaux area show a cautious approach to wood use. A shortage ol skilled craftsmen exists, yet interest in more wood construction is growing, aided by government and industry eflorts. lll Horizontal siding is often seen. l2l Built in 1981 this hbme shows limited application of exterior moulding. l3l Not all design approaches are successful, at least to the American eye. llf 1980 house, built in U-shape features flat roofs, vertical mansards and stucco walls. Cedar is a favored interior wood.

lnternational Products Show

(Continued from previous page) openings included for doors and windows.

As in the U.S., wood preserving is a growing market. Announced at Batibois (pronounced batty-bwah) were the four official classifications for treated wood by the Association

Francaise pour la Preservation du Bois or the French wood preservation association.

The AFPB allows four classes: one and two involve brushed or painted on chemical preservatives for non-ground contact applications, while classes three and four are for wood pressure treated with water borne chemicals for use as sill

stock and other ground contact applications. The AFPB is a rules writing and control organization only, similar to such groups in this country.

The computer revolution and the French enthusiam for it were much in evidence. Virtually scores of new software applications have been developed for applications

ranging from land planning use through construction to product design. Videotext, a computer method of bringing up information on practically any subject, was featured as well. Videotext has been a big success in France as the government has spent millions to force the development and use of this communication and information retrieval method. Experiments with it in the U.S. have not been commercially successful.

There were 291 exhibitors with 72 ofthem from l9 other countries, truly an international exposition. Like the attendance figures of more than 10,000 professional visitors, these numbers represent a slight increase from the first Batibois, held in 1984. The show will next be held October 4-9, 1988.

The expo was again in Bordeaux, France. While perhaps better known for its outstanding red wines, Bordeaux is also adjacent to the largest single pine forest in Europe. The city will also be the site for the 1988 version. In addition to a large local wood industry,

the Port of Bordeaux is active in shipping wood products. The Star Shipping Co., for example, has regular container line runs to Long Beach and Oakland. Ca.

Despite the talk here of our increased effort to reduce our trade deficit, there was not a single American exhibitor at this year's show. While several well-known American companies and their products were displayed, the exhibitors were their European representatives. Only a handful of American visitors were to be seen, a lamentable fact as Batibois has much to offer anyone connected to the wood business. Some observers expect increased American participation as the show becomes better known.

Seven nations took official part in Batibois: Cameroon, Canada, Finland, Ghana, Hungary, Ivory Coast and Sweden. Their displays showed a high level of professionalism and commitment to vigorously marketing the woods of their respective countries.

The Swedes and Finns had a

joint exhibit, part of a Scandinavian tradition of cooperating in such matters. Directly across the aisle was a large Canadian exhibit tied in with the Swedes and Finns.

The Canadians were promoting panels and siding in Western red cedar (or Cedre Rouge de L'Ouest in that market) as well as Douglas fir sheathing, plywood and even framing lumber. Interestingly, the French are now growing their own Doug fir, the outgrowth of reforestation efforts in war damaged areas in central France after the end of World War II.

The cedar siding is a high price, top of the market product and competes with domestic woods and pressure treated wood. Other items on display included shakes, Douglas fir plywood, hemlock paneling and a window and door shutter system made in GermanY from Canadian wood.

More d-i-y products than ever before were to be seen. EsPeciallY popular were paneling and modular

(Continued on next Page )

lnternational Products Show

(Continued from previout page)

components, i.e., spindles, dowels and panels for tables, tv stands, shelves, furniture and the like.

For example, Societe Industrielle Forestiere showed a handsome line of d-i-y paneling in their Decorland line. The pastel colored tongue and groove wood strips are approximately 4" x l', 2' and 3' in length and are painted, then varnished. The firm sells throughout Europe and is currently eying the American market as are a number of other European building product producers.

Various federations and trade associations held meetings in conjunction with the show. The Spanish Timber Confederation met as did several French organizations.

GLULAM (European Group of Manufacturers of Glulam frames) celebrated its 2Oth anniversary with a gathering. Several African countries took part in the Conference of African Ministers of Construction, also held at Batibois.

A wide variety of technical visits to sawmills, industrial plants, cabinet and furniture factories were also included. (see accompanying photos of a tour of architects' all wood homes.)

One of the other tours was a visit to Villabois, a I 17 home village of all wood houses built as part of the first Batibois in 1984. After two years the homes appear in good condition (Bordeaux has a relatively mild climate) but still show signs of their hasty erection. Batibois (a shorthand kind of word meaning, roughly, wood in construction) fulfilled its role of being an international gathering point for those interested in wood and wood construction. The displays and related activities left no doubt the show's future is brieht indeed.

Denny

(Continued front page 45)

tional lumber, hardware and home improvement companies utilized.

It is a time to maximize efficiencies. Zero base budgeting, which was a well used phrase over the last

ten years, should perhaps be replaced by "zero based thinking." I believe new concepts, new systems, new procedures, different channels of distribution and enhanced electronic systems represent a good nucleus to evaluate as opportunities for a more efficient, more productive operation.

Certainly we as retailers will face an unstable, if not weak, economy in 1987. We can look upon it as a curse or face the realities of a coming age and find new retailing efficiences to prosper.

Managers Training Conference

A training manager's conference to help Home Center Institute members improve their training programs will be held June 8-10 at HCI headquarters in Indianapolis, In.

The format will follow that of last year's debut conference, and the series of roundtable workshops has been expanded from five to nine. Roundtable topics relate to training personnel in large chains with big budgets as well as for single unit and small chain retailers just beginning a training program.

Bill Walker . Dave Simmons o Jim Joseph Phillio Graue . Bob Witts . Bob Dunlap . Bill Cox

Wickes On Acquisition Binge

Wickes Cos., anxious to make acquisitions before the end of the year, has agreed to acquire Collins & Aikman Corp. for $1.16 billion and Lear Siegler Inc. for $1.7 billion.

The acquisition of Lear Siegler is currently in doubt with Wickes having trouble obtaining financing because of the Boesky scandal.

Completion of the acquisitions will allow the company to begin using about $425 million in tax-loss carry-forwards to shelter the income from profitable acquisitions.

Lear Siegler, a Santa Monica, Ca., neighbor of Wickes, is a mili-

Schlaeger

(Continued from page 16)

think prices will probably hold firm or even increase slightly.

Canadian producers have enjoyed up to a 33% share of the U.S. market. On Oct. 16 of this year, an import duty of l5o/o was imposed on imports of Canadian softwood lumber. The net effect could mean an increase in demand from U.S. mills in the Pacific Northwest, if they are prudent in their pricing. At any rate, there is little doubt this action will exert an upward pressure in FOB mill prices in softwood lumber domesticallY, as well as a probable increase in transportation prices due to spot shortages of lumber-hauling equipment by western rail carriers.

tary and commercial aerospace business as well as a maker of automotive parts and electronics. Collins & Aikman is a New York maker of auto upholstery, fabrics and wall coverings.

The two transactions are expected to give Wickes annual sales of more than $8 billion and assets of more than $6.5 billion. Wickes, which emerged from a Chapter ll bankruptcy reorganization in January 1985, alreadY has interests in lumber, home furnishings, apparel, automotive Parts' manufacturing and retailing.

Analysts believe that Wickes will rid itself of some of Lear Siegler's 30 different operations.

Although the forest products industry's prospects for growth in 1987 appear slim, BN exPects modest growth in its forest products business. This growth will come about as a result of greater carrying capacity in our fleet, due to our new centerbeam flatcars. Growth will also come from traffic originated on BN, but more important, from traffic received from connecting carriers.

In the U.S., demand is expected to remain relatively strong in the Northeast, with some softening in the Midwest due to continuing problems in the farm economy. The forest products market is expected to be good in California but flat in the Pacific Northwest, and struggling in the energy-dePendent economy of the South and Southwest.

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Quick Quotes For 1987

(Continued from Page 3 8)

"Throughout the business community, you get almost unanimous agreement that the most difficult problems facing us are the deficits of both budget and trade. "

Robert Beck Chairman Prudential Insurance Co.

"When you try to put it all together, the message is that the economy isn't breaking out one way or the other from the slow growth, low-inflation environment that it's been locked into."

Robert Dederick Chief Economist Northern Trust Co.

"The great question is whether and will seek out and exploit the opportunities here and abroad made aligned exchange rates."

Paul A. Volcker Chairman Federal Reserve Board

management can new competitive possible by better

"The economy is likely to grow at an inflationadjusted annual rate of 3.50/o to 40/o next year."

Beryl Sprinkel Chairman Council of Economic Advisers

"Retail sales figures suggest consumer spending is slowing down from its torrid pace earlier in the year, but the figures shouldn't send anybody into a tailspin about a collapse."

Sandra Shaber Economist Chase Econometrics

"Residential real estate will continue to be the bright spot in the state's and the nation's economies."

Joel Singer Economic and Research Department California Association

of Realtors

Annual Clinic & Machinery Show

The l5th annual Clinic and Machinery Show will be held at the Memorial Coliseum, Portland, Or., March 4-6. More than 475 exhibit spaces have already been sold with a limited number still available.

Sponsored by Forest Industries magazine, the event is the industry's largest annual exhibit of sawmill,and panel production technology and equipment. It will include six half-day sessions and three full-day sessions. Cost is $75 for each half-day session and $150 for each full-day session.

gaillnal W talprrila Lunrbp,t Pine Redwood Cedar

Hem-Fir Hemlock Douglas Fir

GREEN or DRY . DIRECT MILL SHIPMENTS . LCL O CARGO O RAIL . TRUCK & TRAILER ' PRESSURE TREATED LUMBER

Computer buying show comes to you

I T'S the trade show of the future. I Forget registration, airfare, hotels and time away from the office. Dealers review vendor specials and place orders without ever having to leave their offices. Vendors pay a fee to show offtheir wares by staying home and avoid the costs of booth space and running a three day dis-

Story at a Glance

Computers bring buying co-op's trade show to terminals in memberc'offices show sales rise 450/o ... electronic show to permanently replace fall expo, although spring show retains traditional format.

play. The over-the-computer products show has arrived.

The first annual electronic exhibition was held in September by Central Builders Supplies Co., a fast growing hardware buying cooperative. A-Line, the communication system over which the 48-hour show was carried, has been a big reason for CBS's recent expansion. Two years ago, CBS had a sales volume of $12 million done through 400 stores. Sales for 1986 through well over 500 members are projected at$226 million with $325 million predicted for next year.

Two years ago CBS adopted A-Line, named after Allied Building Centers (ABC), the chain name for CBS members. The system, employing the 3M Whisper Writer and Western Union's Easylink service, affords nearly instant distribution of messages.

"Basically, we can send out a message and in 20 minutes all our dealers will have itl' says Phil Pobanz, general manager and treasurer. "We can run sales, promotions, deliver information on the market. And dealers can communicate back to us, to other dealers, or within their own companies in the same wayl'

The next step was a buying show over A-Line. It worked. More members ordered, more vendors participated and a higher dollar volume was generated than at any previous CBS show Compared to last fall's show,55% more of the membership attended and orders placed totaled 45% more. And many members placed "new orders" with vendors they had never done business with before. Attendance and sales grew while the show was staged at a much lower cost to everyone -

CBS saved about 80% ofits regular show costs.

CBS says the electronic show will permanently replace its fall exhibition, although its second yearly show will remain as is. "We will have a physical spring show in February when you will be able to see, feel and touch new 1987 offerings. New products are generally introduced at the new year which is common in the industry. Although we believe the spring show is absolutely necessary, it will be interesting to comparel'

But CBS is so confident in its A-Line, that by the first of the year each member will be required to connect to the service. Currently 75Vo have the equipment, up from25% earlier this year.

While the system was originallY installed for ordering and sending out messages, newsletters, market reports and special sales, CBS is always searching for new applications, such as the show. The company has now transferred its entire listing of products onto the line. "We have a computerized catalog I ' says Pobanz "There's no big paper volume, nothing to file, nothing to keep up. Our catalog is updated every morning. Even the microfiche is obsoletel'

These and other technological breakthroughs, such as a new system for

authorizing credit card transactions within seconds, are helping ttre innovative group grow and remain strong alongside mammoth-sized dealer-owned cooperatives like Cotter & Co.'s True Value Hardware Stores (over 6O00 members) and Ace Hardware (4,500+).

But CBS is a little different. "Unlike others who tell you they are dealerowned, we are truly dealer-ownedl' says Pobanz. "Here, everyone has one share of stock each. I know, for example, that there is a buying service in the South in which at least three men have more stock than everyone else. They have a more vested interest than the others.that the company do welll'

CBS offers full service lumber. building materials and building specialties departments, featuring most every brand name. Everything is shipped straight from the manufacturer to the dealer, without a middleman.

To join, a store must be independently owned, have a history of discounting its invoices and being able to pay its bills, and have a desire to buy as low as possible. CBS gets its prices down by running as a non-profit organization with operating costs of Vz of l% of sales. Any leftover "earnings" are returned quar-

terly to dealers as rebates in cash, not as credit or paper stock.

CBS has placed all is faith in succeeding as the computerized co-op. "The marketplace has changedl' explains Pobanz. "It's more competitive. To be more competitive, we changed. You have to change, you have to progress. No one is driving Model T's anymorel'

ALL ELECTR0NIG trade show was carried by Central Builders Supplies buying group over its A-Line computer system, as demonstrated here to co-op members at an earlier show

ENTHUSIASM LACKING

(Continued from page 37) adjust and capitalize on a competitive market the upcoming year will be a good one. We are in the midst of an opportunistic, growth industry and not part of the lethargic and directionless economy that shows the many characteristics of recession without really being one.

More and more we have to remind ourselves of our manage- ment mission which is to achieve results in line with ambitious goals. The establishment of a goal in line with a slight increase over 1986. and at worst l0o/o below 1986. should be the target we are aiming for.

REMODELING

(Corttinued Jntm page 3 7)

R&R market is expected to increase nearly l0o/o in 1987, mainly due to the healthy existing home sales market. Close to 1.1 billion feet of wallboard is expected to be consumed in the residential repair market next year.

Sales of vinyl siding in the resi-

dential residing market should exceed 6.5 million squares next year. Shipments have been increasing almost l0o/o each year as the usage grows to virtually all regions of the country.

In the last two years, the Northeast's share of remodeling expen- ditures has increased, while the South's share declined. It is too early to tell if this trend will continue into 1987. Even with these changes, the South remains the number one remodeling market, followed by the Northeast, North Central and West, respectively.

W.O.O.D. Awards Architects

W.O.O.D., Inc.. Denver. Co.. honored six firms recently at its 20th annual architectural awards program.

Each year since 1967, the forest products promotional organization has awarded Colorado designers for outstanding use of wood in projects during the previous year.

This year's Oct. 24 competition attracted a record 5l entries, resulting in l4 finalist firms.

The Merchant Magazlne

The winners included a tie between David Weesner Associates and Witter Architects for residential/single-family, and Fuller, Fuller & Associates for residential/ multi-family.

Other awards were presented for commercial, interior design and remodeling/restoration categories.

Mountain States Buying Show

The Mountain States Lumber and Building Material Dealers Association will sponsor a building materials buying show, Thursday and Friday, March 12 and 13, at the Denver Merchandise Mart, Denver, Co., 2 to 9 p.m.

Building material and hardware dealers from the Mountain States Region are expected to attend to buy for their late spring and summer needs. They will be offered a complete display of lumber, panel products, doors, windows, millwork, hardware, paint, tools, insulation, fasteners, fencing, roofing, siding and specialty building materials.

"LOOKINGAROUND"says Paul Bunyan

Paul does no_t rest on his fame as the lumberman's symbol of accomplishment. New requirements and changing conditions keep him aleft to progress.

n |--5?5?t--G)t)ItF| |tItilis

CANADA STONEWALLING?

I read and enjoy The Merchant.But, I must take exception to the message in your November editorial.

You intone that no negotiations to resolve the Canadian timber subsidy issue have been conducted. This is simply not the case. Canada has stonewalled the issue by denying the existence of a timber subsidy on the one hand, and refusing to engage in open and free trade of logs on the other. Wouldn't that be the simplest solution? Simply allow U.S. mills to purchase logs at prevailing market prices, just as the Canadians can do in the U.S. now?

It's only "free trade" if we're all playing by the same rules.

Gerry Lane General Manager

Allen Logging

HC80, Box 736

Co.

Forks. Wa. 98331

A KROC OF FISH

You ran a picture kee The Merchant Magazine, Oct., p. 72) of some lumbermen holding up their catch of fish supposedly caught in the Klamath River. We members of the Klamath River Out-of-Bounds Committee (K.R.O.C.) believe these fish were actually caught in one of the small creeks that feed into the mighty Klamath River.

As proof of this, we submit a photo of some fish caught by some real

fishermen from Martin Forest Industries and Harwood Products. You can immediately see the difference in the two photos. Maybe they were holding up their bait in plastic bags for the photo. Who knows for sure!

We at K.R.O.C. just want your reading public to know the real truth in this matter.

Chief Bud Beefeater President of K.R.O.C. and Founding Member

of Harley's Hawgs

Chief Bud is sometimes referred to as Gary Malfani of Martin Forest Industries, Healdsburg, Ca. - ed.

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

(l-r) Chris Johnson; Harley, a river guide; Mike Mosby and Dave Martin.

Selllng tothc scurH2

lf you sell into the South, or any part of it, we can help you get across your message.

Building Products Digest covers all 13 Southern states. Each month we send 12,750 copies to 100% of all the retailers, wholesalers, distributors and jobbers. That's all the home centers, home improvement centers and retail dealers as well as those at the wholesale level that back them up. This saturation coverage means you now have a way to reach your

customers and prospects. Building Products Digest, the highly acclaimed monthly for the Southern trade can help you get across your message. The Digest, incidentally, is the sister publication of The Merchant Magazine and is based on The Merchant's proven format . doing the job for advertisers for 63 years.

You can count on reaching the market in the South through Building Products Digest. Call today, you'll be glad you did.

Stronger 1987

(Continued from page 9)

after the initial shocks and uncertainties, lower oil prices will help most sectors. The major decline in the value of the dollar on international markets should help U.S. manufacturers and farmers. The rapid growth of the money supply should help give an impetus to consumption and production, although it is not good news for the longer term outlook for inflation.

The tax reform of 1986 is highly complex, and it is difficult to sort out the many interacting and opposing effects. Most of the changes affecting real estate development are negative, ranging from severe limitations on the deduction of "passive" losses on income property from other types of income. i.e.. labor and investment income, to a near doubling of depreciable lives of structures. Perhaps the one real estate subsector that may be relatively benefitted by the tax act is owner-occupied, single-family housing. The mortgage interest deduction was preserved on first and second homes. Thus, some are arguing that

this is one of the few "tax shelters" left to middle- and upper-middleincome households.

Turning to the West, there are wide disparities in both the recent performances and outlooks for the various states. Many states in the West are economically dependent on a few sectors that recently have been suffering major difficulties, most importantly, energy and agriculture. In general, the resource-based economies have been suffering declines that are often mirror images of their boom times of that later 1970s. In fact, we are forecasting negative nonfarm employment growth in three states in the West in 1987: Alaska, Montana, and Wyoming.

States in the West that are more diversified or have growing basic sectors include Arizona. California. Nevada, Utah, and Washington. In each of the latter, nonfarm employment growth is forecast to be equal to or greater than the 2.60/o increase forecast for the nation for the 1987 average level compared with 1986. Nearly every one of the latter states has important high-tech or aerospace manufacturing sectors that are benefitting from rising defense and commercial demand.

Arizona

(Continued irom page 26)

time - even if it's a little late, you're still thankful." To many operations, credit problems amongst their customer mix have become a critical part of management function.

And what about 1987? Well, all indications in Arizona point to a growing market that is the envy of many other areas across the country. On the other hand, extremely tight and prevailing competition has many people justly worried about next year. To the wholesaler and retailer alike, it seems that the key is "you have to sell lumber!" The problem, however, is not so much in the movement of the lumber as it is in the cost of its purchase to the price of its sale. Just how much margin is required from what volume of business is a perplexing and constant question that must be successfully answered.

It is no fun to be caught up in the vicious circle of trading dollars between customers, banks and employees and having only worn out equipment result from the efforts.

To that end, one year passes and another begins and all ofus here at the ALBSA wish everyone a happy holiday season and most certainly a prosperous New Year!

SINCE 1876YOUR COMPLETE GUIDE... lumDermens red b00lr $erulce

Tho Lumbermens Red Book llstsall producers, wholesalers, retailers of lumber and wood products of any kind, and. . all manufacturers ofwood furniture, cabinets and millwork - mobile 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 listlng showsthe exact business name - complete address, including

P.O. Box and 7lP CODE!concise description of what the business does - special data such as location of purchaslng departmentthe financial strength rating (not alone the net worth, but what is available to credltors)the exact payment rating (how it pays: prompt, slow, very slow).

A Red Book credit rating is accurato, because the man who assigned it is a spoclalist in the tield we cover. His rating allows you to make an immedlate decision!

Please enter our subscriotion for Lumbermens RED BOOK service for one year. Bill us: $272.50 quarterly n; $t15.00 semi-annually tr; $1,090.00 annually !.

Please send more information, without obligation n.

NAWLA Regional Meeting

Everv vear. the North American Wholeiale Lumber Association holds a series ofresional gatherings throushout the UIS. The one pibtured-here was held in Orange, Ca. Speaker Les Anderson, Random Lensths. reviewed historical marktt trends as they affect present markets. NAWLA's Pete Niebling forecast that 1987 would mirror 1986. See story on page 10.

Wll0tESALERS lll Ted Gilbert and Sterling Wolf e, with Les Anderson, publisher ol Random Lengths. l2l Joe Tidwell, Ted Pollard. l3l Bill Sullivan, Patric Taylor, Jack Butler, Carl Henoch, John Hollstein, Robert GoldinS. l4l Jim Newquist, Bob Wells, Bill Sheathelm, John Weston, Pete Niebling. 15l Greg Arnds, Peter Svenkerud, Greg Woods. (61 Bill Conroy, Bob Davids. l7l Pete Parrella, Francis Rich, Mark Hanna,

Bud Pallviny, Tim Klever. [8] Mike Mullen, Dan Eye, Frank Stewart. 19l Bud Baker, Pete Speek. ll0l Ron McClellan, Larry Knox, Bill Fetherston, Bob Schneider. llll John Hodge, Mark Lofland. ll2l Ron Tipton, Wendell Lawson, Ken LoBue. ll3l Frank Velez, Stu Jones, llll Bruce Kelly, Tenas DeJong, Matthew Hallendy. llSl Ernie Price, Jerry Breedlove. ll6l Jack Finnegan, Sam Witzel.

The Merchant Magazlne

SPECTNLIZNGIN PINE

PULLED TO LENGTH ORDERS - ANY OUANTITY DIRECT

COMPLETE LINE OF THE FOLLOWING:

REDWOOD

CONSTRUCTION HEART ROUGH

4x10, 4x12,4x14 6x6, 6x8. 8x8

ACA CHEMONITE

lumber-foundation grade

& 2x6

plywood foundation grade

& 3t4 CDX

#3 DF lagging LP-22 3x12 Rough

RAILROAD TIES

CORRUGATED GALV. STEEL

TEMPORARY POWER POLES

(213) 567-130r (7ru) e72-0re6

GTASSIF!ED ABUERTiSEMENTS

SALES - Expand your Horizonsl Need lumber and plywood salesman for new Fontana, Ca., distribution yard. Generous compensation plan plus fringe benefits - please contact Ray MacDonald 014) 681-4707.

Tkenty-five (25) words for $19. Each additional word 65C. Phone numbercounts 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: $4O camera ready, $45 if we set the type Names of advertisers using a box number cannot be released. Address replies to box number shown in ad in care of The Merchant Magazine, 4500 Campus Dr:, Suite 480, l'{ervport Beach, Ca. 92660' Make checks payable to The Merchant Magazine. Mail copy to above address or call (714) 852- lgmDeadline for copy is the 22nd of the month. PAYMENT MUST ACCOMPANY COPY unless you have established credit with us.

WELL ESTABLISHED

Los Angeles

importer-distributor firm has opening for plywood-lumber sales representative and trader. Opportunity, compensation negotiable. Send resume to Box 559 c/o The Merchant Magazine.

thcl #t

[ET'S TAI.K FACTS

Cascade Empire is looking for a few special people who already successfully trade Forest Products as office wholesalers and have the facts to back up previous experience.

rACl #2:

We have a few facts of our own. lf you trade $150,000 Gross Trading Margin at Cascade, your income would be $55,000. lf that gross was $250,000, your income would be $100,000. In addition, we have benefits which include life, health and dental insurance, disability insurance, 401-k savings program, business expenses paid and incentive travel trips for our top producers.

FACI #I:

We try to keep it simple. You trade-you earn. You must be experienced in order to respond to this ad, you must have a proven record of top production, integrity and be a team player. We're looking for a perfect match-youl skills and our needs.

Our main office is in Portland, Oregon, with branch offices in Scottsdale, Arizona, Newport Beach, California and Columbus, Ohio.

FNCT #I:

We're serious and we hope you are. Reply to me personally and let's talk facts-including the possibility of adding you to the Cascade team.

Ray B. Haroldson President

Established plywood wholesaler seeks an experienced, aggressive sales person with following. Salary plus commission and excellent benefits package. Send resume to Cliff Lowy, North American Plywood Corp. P.O. Box 2668, Santa Fe Springs, Ca. 90670.

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\ 99'7-1704.

GENERAL MANAGER to control operations of $2 million small log sawmill in north eastern California. This specialty operation is new and requires abilities of a GM experienced in directing all aspects of production, purchasing, marketing and personnel administration. Resume in confidence to LBM Industries, Suite 101, 5l I Orchard St., Golden. Co. 80401.

LLMBER SALES. Southem California wholesaler has an immediate opening for a lumber sales trainee or a proven lumber trader with strong customer following. We are a high volume offlce with unlimited sales territory. Top compensation and benefit packagc. Inquiries in strictest confidence. Send resume to Mesa Forest Products, Inc., PO. Box 4011. Costa Mesa. Ca. 92668.

SALESMAN NEEDED-WHOLESALE lumber experience preferred. Contact Don Stobaugh. Inland Timber Co.. (21.?) 611-31r'i or (114') 871-2C01.

CHIEF OPERATING officer, general manager or vice prcsidenFoperations available for multilocation consumer/contractor or combination operations. Thoroughly experienced with impeccable background. Recognized for integrity, people orientation, mature judgement and producing profitrble resuls. Inquiries to Box 558 c/o The Merchant Magazine.

TWISTED AND WEATHERED

Douglas Fir 54S and rough, 2x4 and wider, 3x4 and wider, 4x4 and wider. Call Bill Hunter, Hunter Woodworks, (213) 775-2544; (2r3) 835-567r.

WANTED: Existing door shop/pre-hanger in Greater Phoenix, Az., area. Major corporation seeking Southwest expansion opportunity. Reply President, P.O. Box 15366. Santa Ana. Ca..92705

COPELAND LT,MBER WISHES TO BUY

Lumber Yards in the Western States.

Contact Copeland Lumber Yards Inc., 901 N.E. Glisan, Portland,Or.97232, Attention John Matschiner. Real Estate Manager. (503) 232-7181 All inquiries

OREG,ON COASTAL lumber and building supply yard for sale. Well established, profitable business in growing community. Excellent gro\,r/th opportunity. PO. Box 3833. Vancouver. Wa. 98662.

E" VONNEGUT Moulder available in 60 days. See in operation now. $18,000. Peterman Lumber Co. (714) 829-3466.

2 YATES-AMERICAN double surfacers. 30" wide. Model 177. Good operating condition. Priced to move. Will deliver in Su. Ca. Contact Clint Borver, Mariners Forest Products (714) 751-0800.

Reasonably priced. (818) 330-0649.

YATES C-88 moulder/sticker. 8" wide, completely rebuilt. Priced to move. (805) 543-5533, Pacific Access Lumber, P.O. Box 1098, San Luis Obispo, Ca. 93406.

NORFIELD-GENIE DOOR & jamb machine with strike routing machine. Three years old, great condition! $9000

O.B.O. Roy Wallingford (805) 925-8644.

LT]MBER SPECIALITY REMANUFACTT]RING PLANT

Highly ptofitable and rapidly growing prc-finish and lumber specialty rcmanufacturing plant & production equipmenl The 13,000 sq. fL meal building is heated, insulated, equiPped with 440-3 phase power and sits on 5 acres on main truck roule 12 miles from Canadian border.

Company services commercial and industrial contractors in the 22 westem states. Business being sold with 4Mo of annual production capacity pre-sold for next 3 yean, if wanted.

Price: $485,(n0 rvith $200,fi)0 down.

Contact Bill Henshaw, Broker - Equity Inveshnents

4200 Guide Meridian - Bellingha4 Wa.98225 206671-06W

J;r".A/ Jirtilern C"1'6-r*

Dick Phelps, Broker (former lumberman) available to assist you.

JAMES R. GARY E Co. Ltd.

Realtors & Estate Agents

21747 Erwin St., Woodland Hills, Ca. 91367 ca. (E18) 703-8144 Nat. (800) 431-0555 (E0o) 421-0s55

LOCAL LUMBER hauling Southern California roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in Long Beach. 3C Trucking (213) 422-M26.

tsUVE A]S'

GUIDE

_ SoUTHERN CALTFORNTA- SAN FRANCISCO BAY AREA

LOSANGELESAREA

Amsrican Hardwood Co.

8€rkot Mlo. Co. .....,....

g€vorly Manutaclufino C0.

Burns Lumbor Co,

Carroll Mouldino Co,

Chaparral Distributors

Chozen Truckin0 Co.

Coastal Lumber C0.

Coos Head Lumber & Plyw@d

3C Truckino

ooolsy Forsst Co., Inc.

El&El Wmd Products Coro.

Far West Fir Sales .,.......... (213) 629-5206

Fountain LumbGr Co., Ed

Frsmont Foresl Producls

Galleher Hardwood Co.

Gemini furest Products

Georgia-Pacific Corp. .. (213) 968-5551

Huff Lumber Co. (800) 223-HUFF

lnland Timber Co. .......

Johnston Hardwood Inc. .. ..

Jones Wholeslo Lumber Co.

Lane Stanton Vance

Lumber Assn. ol So. Calif.

MacB€alh Hardwood

Maple 8106., Inc. Mo0ldings

Marouart-wolte Lumber Co.

Mutual Moulding and Lumber Co.

North American Plywood (ln Ca.) {800) 421-1373

osgood Inc., Robert S.

Pacilic Lumber Teminal

Pacilic Madison Lumber Co. \2131 773-2292

Parr Lumb€r Co.

Penberlhy Lumb€r Co.

Peterman Lumber co.

Philios Lumber Sales

Product Sales C0.

Reliable Wholesale Lumber Co.

Sammons Storage Syslems

San Anlonio Construction

sause 8106. ocean Towing

Snavoly Forest Products

Sott-Touch Computer Syslems

South Bay Forest Products

Southern Calilornia Pre-Stain

Southwest Machinsry Co., Inc.

Southwest Plywmd & Lumber Corp.

Slanline, Inc.

Sumwood, Inc.

Vonl Vue Products

Vir0inia Hardwood Co.

Westorn International Forsst Products

westsrn Turninos E Slail...

Weverhaeuser do.

' (213) 748-54s1

oRAltGE, B|VERSIDE & SAN BERIIARDIilO COUNTIES

American Hardwood Co.

Ander@ Inc.

Anlinson Lumber Sales

Buns Lumb€r Co.

Califomia Lumb€r Inspeclion Seflice

Cal-west Lumber & Milling Co.

Canlor U.S.A. Corp.

Cairoll Morldino C0.

Cascade Empire Co.

DMK-Pacilic Coro.

El&El Wood Pmducts Corp.

Far Wesl Fir Sales

Fontana Wood Pres€rying

Fountain Lumber Co., Ed

Freeman & Co., Slephen G.

Fremont Forest Producls

Ganahl Planing Mill

NORTHERN AND CENTRAL CALIFORNIA

tRcut/EuEEKt/F0nIUtt

Bracut

stcSltEu0/8T0cl(I0r

Beadox Manufacturlng C0.

Berger & Co.

tnEl

Calilornia Cascade Industries canlor u.S.A. Coro. Capitol Plywood cabbsrt Lumber Sales ...... (800) 521-1155

Georoia-Pacific WarshousE

Hedlind Lumber & Machine Stainino

Hiogins Lumber C0.

KoDoors Co.

Laminated Timber Services, Inc.

Lewis Co.. Inc.. Palmer G.

Louisiana-Pacilic CorD.

Michigan-California Lumber Co.

M&MBuildersSupply...

ct0rEn0tu

Lumber Sales

C0rp.

Lumber {Kinton Div.) FORI IIIOG Georgia Pacific Corp. (Redwood)

Lumber Co., Fred C.

Nikkel Corp., The P&MCedarProducts..

Stanline, Inc.

Slockton Wholesale

Union Foresl Products

Union Planing Mill

Waldron Forest Products

Weslern Wood Treating Co. weyerhaeuser C0.

lt00EsT0

Snider Lumber Products Swaro iruckrng ............

RE00n8 tEEr

DMK-Pacilic Lewis Co., Inc., Palmel G.

Louisiana-Pacific Corp. (Red Blufl)

Paul Bunyan Lumber Co.

P&MCedarProducts..

Trinity Bivor Lumbef Co.

Wisconsin-Calilornia Forest Producls

BUYE M]S'

GUIDE

PACIFIC NORTIIWEST STAT ROCKY MOUNTAI WASHINGTON

c0tUtu

Vaagen Bros. Lumber, Inc

t(E1{t0nt

Lewis Co., Inc., Palmer G.

Llartin Forest Induslries

Northwest Forest Products

Sequoia Supply

Simpson Timber Co. ........

Tumac Lumber Co.

Wasatch Mountain Mantel Co.

Western Turnings & Stair

Weyerhaeuser Co. (Sealtle)

Weyerhaeuser Co. (Tacoma)

SP(lKATE Beroer & Co.

Georgia-Pacitic

OREGON

ARIZONA

W. F. "Bill" Strelow, an official of Masonite Corp. who was prominent in the building materials industry for more than 35 years, died November 13. 1986. in Madison, Wi., after a long illness. He was 64.

He retired to Eagle River, Wi., in 1985 after an outstanding Masonite career that started in 1950. He held numerous key positions in sales and marketing, both at the divisional and corporate level. At various times in his career, he served as vice president - sales, vice president - marketing and vice pres.ident - corporate marketing servlces.

Mr. Strelow served in numerous trade groups and organizations, including the American Hardboard Association, National Association of Remodelers, National Lumber & Building Materials Association, National Building Materials Distributors Association, National Wood Window & Door Association and National Sash & Door Jobbers Association.

He is survived by his widow,

Lanoga Reorganizes

Lanoga Corp., Seattle, Wa., is opening a centralized marketing and merchandising office in Redmond, Wa.

Monte A. Leen has become vice president of marketing and merchandising in charge of the operation, according to Theodore T. Tanase, president and c,e.o. The new office consolidates marketing and merchandising for the three Lanoga

TIMBER SIZER PRE.FABRICATION

Verna, two sons, two daughters and two grandchildren.

Ivan O. Neely, former secretary-manager of the Pacific Lumber Inspection Bureau and active in the lumber industry for over half a century, died in Tacoma, Wa. on Nov. 17. 1986. He was 79.

He started his career in the industry at the Western White Cedar Company mill in Millington, Or., in 1925 and, following in the footsteps of his father, became a PLIB inspector in 1929. He became assistant supervisor in 1947 for the Coos Bay, Or., District and was promoted to district supervisor in 1949 before being named superintendent in 1961. He was subsequently transferred to PLIB's head office in 1963 where he served as the secretary-manager for 13 years before his retirement in 1976.

He was active on the American Lumber Standards Committee when the current American Softwood Lumber Standard was developed. He also served on the ALSC Board of Review for several years.

Mr. Neely is survived by his wife, Edith, a daughter, a son and four grandchildren.

divisions, Lumbermen's Building Centers, United Building Centers and Spenard Supply.

"Our new group has begun to function" said Leen. "Four merchandisers, an advertising person and a support staff will be added." Merchandise managers at present include John Windham. Tim Schneider and Jim Kief. Jim Fox is coordinator of advertising, employee training and product presentation.

D.F. GRAPE STAKES REDWOOD & D.F. LATH

TIMBERS

From cutting a wedge to pre-fab'd crane pads or mine shafts. Angle cut, cross cut, drilling, dapping-'tVe'll do them all to cUstom€r specification.

The lumber business demands orderly, efficient and safe storage of many sizes, shapes and grades of wood. For Jones Lumber and Jones Wholesale Lumber that meant helo from Sammons & Sons.

"Sammons has been in the material handling business for nearly as long as we've been selling lumber. As our business grew, we knew that more efficient storage was the answer to space planning and inventory control,"

states Rod Jones, president of Jones Lumber.

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"Sammons has had a significant

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Sammons...

Value lor Ameilca's lndustry.

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