LASC management conference

l\ ESPITE some rain in normally sunny Palm Springs. the Lumber Association of Southern California's annual Management Conference was a shining example of what a business gathering should be. Paced by a program that was both interesting and informative, the conference was enlivened by enough social events so that casual business talk and some fun could be included as well.

The first gathering point at the conference was at the table top exhibits, set up in a ballroom of the Marquis Hotel, where LASC met again this year.

The President's Luncheon that followed took special note of one of the grand old men of the industry and honored George Clough, 85, with the President Emeritus Award. ln his acceptance, Clough spoke of the people he had known in his 60plus-year career, especially remarking on the high quality of lumber people.

New oflicers this year include Dick Hawthorne, Northridge Lumber Co., president; Marty Temple, Weyerhaeuser Co., lst v.p.; George Swartz, Mar Vista Lumber, 2nd v.p.; Daryl Bond, All-Coast Forest Products, treas.; and Bob Slettedahl.

Lumberman's of Palm Springs, sec.

The first speaker on the program was Wayne Quasha of the Merrifield Consulting Group, who talked on

Story at a Glance Distribution,

taxes, management and computers featured Ed Fountain, Sr. named Lumberman of the Year. Dick Hawthorne elected new president.

profits and costs for products that move though the channels of distribution. He cautioned the retailers to be aware of their costs of carrying inventory and how that applies to buying direct versus from a distributor. "The savings of buying direct can be more apparent than real," he said, adding that ego is sometimes the root cause of buying direct.

"The cost of distribution is a wholesale function, even if you are a retailer. You still have to maintain the inventory, carry the paper, make collections and the like," Quasha added. He said that entrepreneurs make money selling, not buying. He noted that retailers and wholesalers both should study the products they sell to be certain which products are most profitable so that they can devote the most time to selling the most profitable products.

Techniques of transferring ownership and minimizing taxes was the topic of lawyer Bruce Givner, the next speaker. He detailed several methods that allow estates to be passed to spouses and children with a minimum tax hit. Noting recent changes in the law, Givner said that in certain circumstances substantial gifts before the end of this year can effect considerable tax savings. He observed the current popularity of irrevocable insurance trusts noting their positive features in various cases.

Dick McArthur. ll9l Kevin Childs, Don Swartzendruber. l20l Nancy Newquist, Ted Schafer.

The following day of the convention, held Nov. 4-7, the lead off speaker was Dr. Ivan Browning who described how climate affects business far greater than the acts of man.

Historical research proves, he claimed, that man is more humanitarian in warm times, with the reverse true in cold times. Dr. Browning said "we are entering times when it's getting very cold very fast, historically this

G0tF & tennis awards party, sponsored annually by Fremont Forest Products, took place the final day of the convention. ll I Winners included: Janet Arnds, a tennis finalist, and Lorraine Lauderbach, ladies mixed doubles champ. l2l Chip Roepke, Att-Coast Forest Products, won golf low net and longest

Lumberman of the Year

The following talk was delivered by Ed Fountain in accepting his award:

My Social Security card identifies me as one of those people you are all striving to bea survivor. By accident or good luck I happen to be a survivor in the lumber business as well.

The business has been good to me. A good living, and best of all, the association with many wonderful people and the memories of many more. In each generation, our commodity business has attracted and held honest, substantial persons. It was usually a pleasure to know them.

About 75 years have slipped by since I brought in supplies to the cook shack at the sawmill, with the dog team I trained myself. I have seen the motive power change from oxen to horses and then through the many changes in mechanical transportation. The sawmills we used, which made a small amount of poorly manufactured drive. (31 Al Reed, Bisco/Enarde International, "earned" the Hobbs Wall high gross trophy. l4l Birdie winner Don Stobaugh, Inland Timber Co., and Marty Temple, Weyerhaeuser Co., who was low gross and closest-to-the-oi n winner.

(Continued from previous page) has always produced dramatic social upheavals."

Because of climate changes, Dr. Browning had a number of rather remarkable predictions to make. Among them: a depression from 1989 to 1993, nuclear war by 2000 with 250 million killed, and half of the world's population dead of AIDS by 2010. The good news consisted of a forecast that the Southwest would enjoy the U.S.'s greatest growth in the next 25 years.

At the luncheon following, Ed Fountain, Sr., Ed Fountain Lumber Co.. was honored as the Lumberman of the Year. The widely respected Fountain. 84. was cited for his innovations and progressive marketing programs over a long and successful career. (Please see accompanying story for his thoughtful remarks.)

Two panel discussions followed, the first the Hall of Famers that included four successful Southern California lumbermen. Lead panelist was Ed Fountain, Sr., who spoke material from only the best logs, to the marvelous machines used today to make superior products from the timber we passed by as useless.

My experience moved from bringing wood and water to the steam engine that powered the mill to accounting. selling and linally management and ownership. There were many side ventures such as pioneering the glued laminated timber business, and making exotic paneling from the lowly pecky cedar. Probably the most interesting, but least rewarding financially, was help- ing to pioneer the American Institute of Timber Construction. of the changes in handling lumber, from animal to mechanical. as well as the amazing increases in utilizing the lower grades of lumber.

During my long career lumbermen have attacked the various problems in many ways. Some of them worked, some didn't. Looking back on some of them I wonder that we had the nerve to try them. Any of us who had an original idea found they were quickly copied and improved upon by others.

LUMBERMAI{ of the Year Award is oresented to Ed Fountain, Sr., 84, by LASC president Phil Butterfield. The plaque recognized the numgr0us wood products innovations developed by Fountain during his decades in the industry and his progressive merchandising methods.

Hopefully the things we did right will be carried on by others. I have come to believe that peo- ple are much alike in each generation, and I have great hopes that lumbermen will con- tinue to contribute to the improvement of how our people live.

Clint Rygel, Rygel Lumber Sales, noted that the basics of business don't change and how management copes with them is the key. Rygel added that the formation of capital remains tough, despite financial market changes.

Frank Purcell, Builders SuPPlY, commenting on the greater access today to industry information, counseled the lumbermen to get involved in both industry and community organizations. "Try new things," he said. "Life is a series of new beginnings. Do everything with integrityand be honest.We're in a people business so assemble the best people you can."

Bill Cowling, Dixieland Lumber, said that service is number one. "Pay attention to all your employees, manage by walking around, so that you know what's going on."

Cowling stressed: "Get paid for everything you do, don't give discounts you don't have to. Do Your own thing, rather than merelY reacting to your comPetition."

The final panel discussion of the conference was staffed by four members of the Second Growth, LASC's group for members under 40.

Lead off panelist Kevin LindsaY, Lindsay Lumber, related how his firm, now in its third generation of family ownership, has develoPed more formalized management lines to control and operate the business. "Computers," he forecast, "will continue to revolutionize the industry."

Claudia Jennings, Redwood Forest Products, commented on the decline in the number of lumber mills supplying products to the marketplace, saying that this had reduced for retailers the probability of being able to purchase lumber from a particular mill. Jennings observed the effects environmental issues have had on lumber suPPlY and urged everyone to get involved to protect his interests.

Tom Mullin, The Terry Companies, said that employees today have a different value structure than in the past. "Our challenge today is to motivate our PeoPle to be loyal and committed. Give Your people a chance to raise their standards of performance," he said.

Wrap-up panelist Patric TaYlor, Cal State Forest Products, reviewed the role of the broker in the industry, noting that this function is one of several developed by the industry to fill the channels of distribution.

With the formal program concluded, LASC members and guests then relaxed with tennis and golf, enjoying some of the famous Palm Springs sun that, belatedly, made an appearance.

Pozdena

(Continued from page 10) durable goods must then decline, and with it, the pace of economic activity generally. With higher savings rates, weaker incomes and higher interest rates, it is likely that the housing industry will weaken accordingly.

We alieady have seen signs of this pattern emerging; in the first half of 1987, growth in consumption spendins did slow to 7.40/o at an annual rate (v-ersus 4.lo/o in 1986) and interest rates were rising: Similarly, residential building declined at an annual rate of 5olo in the first half.

At year end, the signals were more mixed, but probably only because of transitory disturbances to the markets. Interest rates declined sharply in October, for example, as investors fled corporate equities for government bond. In addition, consumer spending had picked up somewhat in the third quarter. But this is likely not part of the longer trend in financial and economic developments. Indeed, it cannot be if the serious imbalances in our economy are to be resolved without radical disturbances in the marketplace.

The opinions expressed in this article are those of the author and do not necessarily represent the view of the Federal Reserve System. Dr. Pozdena is the author of the book, The Modern Economics of the Housins Market, to be published in 1988 by Quorum Books (Westporr, Ct. ed.) -

Roseburg Heads Oregon Gos. Roseburg Forest Products Co., Roseburg, Or., toPPed the list of the 100 largest privately held companies in Oregon for the second Year in a row, according to Oregan Business magazine.

Roseburg and second-Place North Pacific Lumber Co., Portland' both were ranked in the $500 million-plus annual sales categorY.

Jeld-Wen Inc.. Klamath Falls, ranked 8th and was the onlY new company to the annual ToP 10, compiled by the Arthur Andersen Co.

L.A. Glub's Major New Award

The Los Angeles Hoo-Hoo Club has presented its Ken Coleman Mr. Hoo-Hoo Award to Chuck Lember. Pacific Madison Lumber Co.

The first annual bestowing of the honor included a plaque that read: "ln memory of Ken Coleman for his unselfish and untiring work for the