Merchant Magazine - December 1988

Serving the lumber and home center markets in 13 Western SfafesSince 1922 fts*rr$F$rFt$rffitcfr{irg.Jftq$rs?$rGf,:tig..iiqh.Gr.firFfi$r€tfotitfic?$f.,S65qsqqq

When you want the handsome, long{asting quality of redwood lumber, come to Georgia-Pacific. We offer everything from garden grades, rustic sidings and trim to architectural grades of Bee, Clear and Clear all-heart. Our dedication to a Dry Program means more choices for you!

Our Common Program is both S-Dry (190/o or less) and green.We do it naturallyon our ocean bluffs with cool breezes off the blue Pacif ic. And as a f i nal assu rance of q ual ity, G-P is a member of the California Redwood Assol-

ciation and the Redwood Inspection Service. So look for the grade stamp on our lumber. Get the powerful advantages that only the finest in redwood lumber can provide. Rely on Georgia-Pacific to deliverthe Redwood or Douglas Fir you need. Both are available through our Fort Bragg mill-or, through our extensive distribution network. To find out more, simply call the Fort Bragg mill at7w1964-0281.

We erow whai wesell.

We've always considered our forests to be a precious natural resource, which we respect and treasure. Few people realize that most of the old redwoods are preserved in our state and national parks, and almost half of these trees have come from the Pacific Lumber forests through the Save The Redwoods League.

When we harvest the trees we grow in our private forests, we always follow the strict rules of the Callfornia Forest Practices Act. And we always will, because the rules are there in everyone's best interest. We grow all the trees, that we cut for lumber, in our own forests.

Although the stump of a harvested redwood tree grows back as another tree, we annually plant over 750,000 redwood seedlings to insure a perpetually green and growing forest.

The forest is a natural resource that everyone must use wisely so that it can continue to benefit our country for generations to come. If you would like more information on forest conservation or would like to visit a Pacific Lumber mill, please write the Forest Manager at the address below.

BEGIN SAVING BEGIN USING TIME & MONEY I END TALLY

The END TALLY is the most advanced ,1 enviromentally tough hand-held computer on the market today.

Specially designed to allow wood yard operations like yours increased production and profits.

Now Tallying millions of Board Feet annually allowing: , . Speclal Llghtwelght Deslgn

lmmediate Board Foot Totals

Shlpment Load Totals

Three Detailed Reports

Accurate Dry/Green Board Foot Converslons

Able to Interface to present system where deslred

'Made in the USA

The END TALLY is a very lightweight hand-held computerwhich allows the user afriendly means of collectingtallyinformation. TheENDTALLYpromptstheuserthrougheachstepof thetallyfunction with information prompts displayed on the large four line screen.

As each bundle is tallied, the user can press a single key on the END TALLY keyboard and have displayed allthe Bundle Recap information needed to produce a yard ticket. The advantages of using the END TALLY do not stop with a Bundie Recap. The END TALLY allows the user to review any previously tallied bundle where desired. Separate Load Totals can be recorded where multiple bundles are to be shipped.

Afterbundlesorloadshavebeentallied,theusercanproducedetailed reportsbyconnectingthe END TALLY to a printer. These reports may be printed on each bundle or load broken down by Species, Grade , Thickness, Length, Total Pieces, and Board Feet. Load reports are produced for each shiprnent detailing all bundles which make up a customer load. Where requested, the END TALLY will provide dry to green Board Feet conversion based upon the gain/loss percentage entered, and print these conversion totals on the reports.

Edltor-Publlsher David Cutler

Senlor Edltor Juanita Lovret

Asslstent Edltor David Koenig

Contrlbuting Edltors Dwight Curran, Gage McKinney, Ken Thim

Art Dlrector Martha Emery

Staff Artist Carmen Wollerman

Clrculetlon Lynnette A. Perkins

The Merchant Magazine (USPS 79656000) is published monthly at 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92.660, phone (714) E52-1990, by The Merchant Magazine, Inc. Second-class postage rates paid at Newport Beach, Ca., and additional offices, POSTMASTER: Send address changes to The lVlerchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.

ADVERTISING OFFICES

Advertising rates uPon request.

From all states east of the Rocky Mountains: Contact Jean Waggoner Gogerty, national sales manager. From Arizona, Nevada and California: Conract David Cutler. Both may be reached at (714) 852-1990 or by writing 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660.

From Washington State. Oregon, Idaho. Wvomins. Montana. Utah, Colorado, Northern Caliiornia and Canada: Contact Carole Holm at (206) 774-37'13 or 21819 ??th Place west. Edmonds. Wa. 98020.

Change of Addrtss-Send subscription orders and address changes to Circulation

Dept., The lvlerchant Magazine, 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Include address label from recent issue ifpossible, new address and zip code. Subscriotion Rates-U.S.: $1 l-one year; $17-two years; $22-three years. Foreign: one year payable in advance in U.S. funds-Canada or Mexico: air-$35; surface-$30; South America: air-$55; surface$30: Asia: air-$68; surface-$30; Europe: air-$98; surface-$30. Single copies-$3; back copies-$4.5O when available plus shipping & handling.

The Merchant Magazine is an independently owned publication for the retail, wholesale and distiibution levels ofthe lumber and home center markets in 13 western states.

DAVID CUTLER editor-publisher

Some things just don't change

I N THIS Business Forecast issue we're preI senting some of the top people in our industry telling you what changes they see for 1989. And in our rapidly changing world it seems at times as if the only constant is change itself.

Yet, for all the dizzying change in our world, there still are things that remain the same. Human nature is one of them. Taking a long perspective, looking at the countless convolutions of mankind, we still see that human nature from Day I to the present hasn't changed. We don't expect it will, either.

Business strategies can and should be based upon the more predictable aspects of human nature. People are mostly interested in themselves. They want to know what is new, what threatens them and what can produce something they need or want.

People care, to varying degrees, about what others think of them. Many home improvement

projects have been propelled more by what the neighbors think, than for true homeowner benefit. Retailers, who can play to this desire for peer approval, realize they have a powerful motivating force working for them when they sell this concept.

Successful wholesalers have long realized that, for many of their customers, dependability of supply can outweigh a slightly higher price. They have found that their customers are more interested in being assured of a reliable, steady supply of product than facing the anxiety (more human nature here) of not knowing when or if the shipment will arrive.

One way to play to human nature is to put yourself in your customer's shoes. Think about the transaction from their perspective, not yours. You'll be on your way to putting the basic drives of human nature to work for you.

Seruing the lumber and home center makets in 13 Western SfatesSince 1922

1989

A year of new growth

By T. Marshall Hahn, Jr. Chairman and Chief Executive Officer Georgia-Pacifi c Corporation

E DO not expect any dramatic changes in the performance of the building products industry in the coming year. The progress we make will be based on our abilities to continue improving the efficiency of our operations and product quality, producing higher-value-added products, and developing new markets.

Building products manufacturers and distributors were affected in 1988 by declining housing starts and continued low pricing for many products, and we see these market trends continuing into 1989. We do believe, however, that there remain good opportunities for growth and

profitability in this indusiry.

With low prices for panel products still persisting, one of the best ways we can maintain or improve profits is by continuing to upgrade our operations with new technology, thus lowering our production costs. This could be the key to survival for many manufacturers, since housing starts are expected to remain at 1.4 million to 1.5 million during the next year.

New developments in the use of computers in order processing and electronic data transfer will make information transfer more efficient and accurate. The Universal Product Code also is gaining in use and will help to improve inventory control for both manufacturers and retailers.

Improved technology has provided wood products manufacturers with the means to produce more highquality specialty products such as nine and ten foot siding, high-grade lumber and smooth-face particleboard used in furniture, which are in increasing demand. These specialty products will continue to grow in importance in years to come and, because of the higher prices they command, offer another way to maintain or improve profitability.

Another component of future success will be selling our products more aggressively. In recent years, the building products industry has progressed from being primarily manufacturing driven to focusing more on market demands. At Georgia-Pacific we have responded to this trend by developing products such as shrink-wrapped lumber, which offers customer convenience. We will continue 1o pursue other opportunities to improve customer servrce.

Customer service will become even more critical. An anticipated decline in demand from some market sectors next year means distributors will have to be more innovative in their sales approach and their product offerings. As we all are aware, the competitive nature of the building products industry has never allowed marketers the luxury of letting products sell themselves.

Story at a Glance

No dramatic changes ahead... improved technology. moderate growth more specialty products 1.4 to 1.5 million housing starts. repair and remodeling market will hit $100 billion.

One area that will continue to show strength is the remodeling, repair and additions market. Georgia-Pacific expects annual industry sales to this market to reach $100 billion by the end of 1988, and to grow at a moderate but consistent rate in the coming years. Growth opportunities also are seen for industrial wood products markets such as panels used for cabinets or ready to assemble furniture. New market opportunities overseas are opening up as the U.S. dollar maintains a lower level in relation to other major world currencies.

Even though growth in building product markets is expected to moderate in the coming year, manufacturers and retailers still will be able to profit by concentrating on the fundamentals and making a commitment to produce top-quality products.

Retailing sluggish

By Frank W. DennY Chairman/CEO Builders Square

Y THE TIME the December issue of The Merchant Magazine appears this country will have elected a new President.

It is almost certain that a tax increase, effective in

1990, will occur as our country continues to spend at even higher rates. This increased spending trend is evidenced by the 1988 dehcit being hisher than the 1987 deficit, versus "n- $gO billion reduction in 1987 from 1986 levels.

The country cannot continue to incur $150 billion annual dehcits and, in fact, our interest paymelts on this massive debt account for much of the current deficit. After eight years of Reaganomics, it is apparent to me that this ecbnomy, with its present governing body, cannot grow out of these deficits.

Story at a Glance

Tax increase almost certain changes needed to stamulate growth sluggish retail environment . . . limit on corporate mergers probable.

Two changes need to occur to stimulate a higher rate of growth and a decline in the national debt:

(1) Real legislation attacking the spending policies which may have short term negative results on retailing, farticularly important is the "line-item"

policv again. to limit corporate reorganizations by setting iapitlt ritios and the deductibilitv of acquisition interest.

'This will effectively preclude the pure leverage players from the takeover and sell-off activities of the past six years. In enacting this legislation, Congress will be "savine" iobs in America while at the same tlme lncreaslng taies to lower the deficit.

Money rates crucial

By Harlan Hummel Secretary National Lumber & Building Material Dealers Association

I fOOf towards the coming year with mixed feelings I of apprehension and optimism concerning the future of the independent retail lumber dealer. The changes occurring "on the Hill" as the new adminstration moves

in will obviously have a great impact

on not only the retail lumber dealer, but on the entire country. As the l0lst Congress begins, there are several key factors which I feel will in part determine the success of retailers across the country.

One important key to the independent lumber dealers' market in 1989 will be interest rates. Obviously, the key player to watch here will be the Federal Reserve Board. While it may appear that interest rates rise and fall merely at the whini of the Fed, the real culprit is inflation. The course that interest rates take in the new year will be crucial to independent retailers; obviously, if interest rates continu6 to climb, housing will become less affordable' If housing becomes less affordable, retail lumber dealers will suffer. veto.

(2) Revision lowered, tion.

of the capital gains tax creates jobs and fosters which, when capital forma-

It is extremely interesting that Secretary Baker is exploring a sliding scale capital gains tax based on how lo-ng investments are held. I believe this theory truly holds promise and would be an effective use of taxation as a hethod to set policy in the business community. For the retail environment in 1989, sluggish would be my description. Recently there have been several studies which t feel correctly represent that the public has a significantly greater amount of discretionary income than thev had in 1980. However, 1989 could well see the negative impacts ol

(l) Rising interest rates and inflation;

(2) Continued consumer credit growth which must abate to increase consumer liquidity;

(3) Erosions in consumer confidence that higher tax legislation fosters.

The other area which I believe will be addressed by Congress is the current w-ay9 of corporate mergers. Recentlv *e have seen over $60 billion in takeover activity. Congress has generally been willing to take on those issuds which do not directly impact their constituency. It is here that I believe Congress will act, through taxation

Story at a Glance

Interest rates crucial for independent dealers housing policies of the 101st Con' gress will be important. . repair & remodeling a growth area. material costs to rise.

Another key ingredient to the success of the independent lumber dbalei is the action that the 101st Congress takes to lessen the burden of the large Federal deficit' Higher taxes may indeed be one solution to the debt cri5is, if the funds are used in the appropriate manner. However, higher taxes are also likely to inhibit consumer spending. '

The housing policies of the 10lst Congress will be important. It would appear that the.move will be towards eniouraging new low to moderate income level housing projects, as well as the renovation of existing vacant buiiOings. While the current proposed policies are a positive mo-ve in the fight for the homeless, the bureaucratic "red tape" that may be involved could be too burden-

some and costly for some independent lumber dealers.

It is clear that housing has become less affordable for the average American family. A sector of the population which has been notedly affected is the first time home buyer; homeownership has dropped close to 100/o for households in the 24-35 age group. Tax incentives for the first time home buyer will become an important issue for the industry in the coming year.

With the increased cost of housing comes the growth of a second and valuable market for lumber dealersrenovation and remodeling. This is clearly a growing opportunity for the independent dealer, and one which should not be overlooked.

It would seem to me that the cost of building materials will continue to rise, particularly in regards to dimension lumber. The recent disastrous forest fires, coupled with the proposed environmental programs to limit the depletion of certain federal forest land, could result in lower supply.

Although it is doubtful that we will see tremendous growth this year in the building material industry, the ingredients are there for a strong and steady year. The actions of the l0lst Congress willundoubtedly be critical to the overall success of the industry. However, with effective marketing strategies, financing, and quality service, the independent retail lumber dealer should continue to command a dominant share of the buildine materials market in 1989.

Pretty good year

By Pete Niebling Industry Conferee John T. Cole and Associates. Inc

Our view is that wholesalerdistributors' bottom lines will depend more on operations and strategic planning than on mill prices, interest rates or demand. In some cases, size and growth will be one answer to profitability. For others, it will depend upon assured supply or niche-marketing.

Story at a Glance

Fairly stable interest rates, good export markets, pretty good demand, adequate sup- ply. .softer housing activity but better re, modeling demand.

In all cases, personnel with a high level of professionalism will be a factor. Producers and distributors who can "grow" their customers will do well. This might involve sales volume but in many instances it will iequire growth of services, of people and of management. Our good customers will more often demand additional and better services. Our bad customers will never be less important to us.

_ Qogd oppo-rtunities will be there for the taking in 1989. None of them will come easv.

Doors,windows steady

sider trade,

WHEN one approaches a forecast of business activitv for forest products in 1989, he or she might conthe general economy, interest rates, international demand, supply, and housing starts. Then, for

. Et".iion; i;ih; U.s. ano Canada.

The answer to all of the above is that 1989 looks pretty good for the forest products industry. It is unlikely that any of these areas will be great in the coming year, but they will all be pretty good.

Whoever the new President is in January, it is doubtful that there will be much impact until the end of 1989 or beyond. Should Prime Min-

ister Mulroney be returned to office. it will follow that the U.S.-Canadian Trade Agreement will become reality. That would be a plus for forest products trade.

We foresee fairly stable interest rates, a continuation of good, if not great, overseas export markets, pretty good demand and adequate supply. Our crystal ball for housing starts for 1989 is 1.4 million. This may mean softer housing activity but better remodeling demand.

The industry is heading towards some serious timber supply problems, but we don't see this as a factor through the first three quarters of next year.

Unfortunately, our "pretty good" scenario is only part of the profitability equation. Will 1989 demand command a market level for producers faced with higher raw material costs? Will the distributors of these products have a good 1989 with the continuing problem of inadequate margins on many lumber products?

By John P. Mikulak President National Wood Window & Door Association

HE 1989 demand for residential windows is ex- I pected to increase, with patio and exterior doors holding steady and the interior door market softening, according to a McGraw-Hill/LSI Systems study sponsored by the National Wood Window and Door Association.

Although new housing activity has been declining, growth continues in the single-family, detached housing market, projected to comprise 620/o of the total new housing market in 1989. The studv. which contacted I 5,000 households'nationwide. indicates that demand for windows will increase by 20/oto 41.7 million units, while demand for patio doors will remain at the 1988 level of approximately 4.8 million doors.

In 1987, sales of wood windows, including vinyl and metal clad units. exceeded sales of aluminum windows

Story at a Glance

Window demand will increase 2o/o.. . patio doors hold steady at 4.8 million. . . interior door demand down 3o/o... more doors and windows used in each home.

for the first time in both the new construction and remodeling/replacement markets.

This trend is expected to continue through 1989-90, according to projections made by Ducker Research Company, Inc. for the American Architectural Manufacturers Association.

Due to the forecasted decrease in housing starts, interior door demand in 1989 is projected to be 33 million units, a 3% decrease from 1988 levels. Exterior doors are expected to reach approximately eight million units, the same figure as in 1988. Still, renovation and remodeling will continue to have a significant impact on demand for residential interior and exterior doors.

While the overall market for these products is expected to soften somewhat over the next year, demand for exterior doors in renovation and remodeling is projected to increase 30/0, bringing the units sold to 3.7 million.

According to the NWWDA study, the trend toward bigger and better homes is still strong. Builders are expected to place more windows and patio doors than before in both the single family attached homes and in single family detached homes, both of which continue to grow in popularity.

Panel market slows

By William T. Robison President American

Plywood Association

THE STRUCTURAL panel industry has the potential r to substantially enlarge its markets in the next

quarter century.

With continued hard work and commitment to growth at home and abroad, the structural panel industry has the potential to substantially enlarge its markets in the next quarter century. Increased diversification will be necessary. Non-housing markets for structural panels have advanced by 1.6 billion sq. ft. per year since 1984, becoming the major factor enabling mills to expand demand in a period of declining housing starts. Domestic markets like nonresidential construction, home repair and remodeling and industrial applications are growing 'steadily as a direct result of APA/industry promotional teamwork.

The valuable international markets for U.S. structural panel products are expected to play a much larger role in the 1990s. In the years ahead, the panel industry will expand its promotional base into Spain and other Mediterranean countries, thus increasing its strong commitment to Europe as the primary overseas market. High priority will be assigned to promising emerging markets in the Caribbean as well as Japan, other Asian countries and parts of Latin America.

There are serious challenges to overcome in the years ahead. The senseless rationing and impoundment of America's abundant renewable public timber resource is an obstacle which we must battle. But with continued commitment to the broadening of the market base as well as developing more cost eflicient products, we'll beat the odds and maintain the healthy growth that enables us to better serve our customers at home and abroad.

Hardwood sales rise

As late as June

the overall market outlook was strong enough to support a forecast of 27.2 billion sq. ft. of U.S. structural panel production in 1988. This small increase over the 27 billion feet of 1987 would have been the sixth consecutive growth year for the industry. But through the late summer and early fall there was a weaker housing market linked to rising interest rates. Although demand in other major panel markets has continued to be strong, the home building decline may prevent us from achieving that sixth consecutive annual production record.

Story at a Glance

Big structural panel marketexpansion in next quarter century. nonresidential, home repair & remodeling, industrial uses all growing increased diversification necessary.

Next year, APA expects a continuation of higher interest rates, which will keep housing subdued, but not crippled. Some other markets may also moderate slightly, resulting in a down year for total demand.The outlook beyond 1989 is brighter as interest rates are expected to decline with inflationary threat receding. APA is projecting a short and modest market decline starting now and ending in early 1990.

By Ernest J. Stebbins Executive Manager National Hardwood Lumber Association

A LTHOUGH my crystal ball is no clearer than any- ll one else's in predicting what lies ahead for the hardwood lumber market in 1989, I remain mildly optimistic judging from my impressions at the recent NHLA convention in New Orleans, La. Everyone is very much aware that the U.S. economy has been expanding for the past 60 months. It is totally out of step with the historic trend of a cyclical economy, which enters a recession usually in cycles of three to three and one-half years. Because demand for hardwood lumber, both at the industrial level for pallets and packaging and at the consumer level in fine furniture, flooring and archi-

At the same time, when everyone is employed, consumer discretionary income goes up and furniture purchases and remodeling projects eat up a lot of hardwood lumber.

During the NHLA convention we heard a knowledgeable economist, Sarah Meyerrose of First Tennessee Bank, Memphis, Tn., point out that many of the economic indicators point to a slow-down in the economy. However, Ms. Meyerrose herself noted that one year ago at the NHLA convention in Washington, D.C., following the stock market crash of Black Monday, Senator

Sam Nunn in addressing the NHLA general session made much the same prediction: that the year ahead offered a poor prospect for the U.S. economy. Senator Nunn could not have been more off the mark, and Ms. Meyerrose qualified her predictions on that basis. During the past three months the index of leading economic indicators has first fallen, then risen slightly, and in the most recent months recorded, fallen slightly again. This unusual behavior is confounding economists and is another characteristic of this long drawn-out economic expansion. The Gross National Product is still growing, although growing at a slightly lower rate in the last quarter. So while the indicators out there are that the expansion of the U.S. economy is slowing, the majority of economists believe that a recession is unlikely in 1989. Add to this prediction a factor important to the hardwood market, the significant increase in hardwood exports during the past two years. The hardwood lumber market is no longer a domestic market, but entirely a world market. Perhaps as much as one billion dollars in sales will go overseas in 1988, up from approximately $750 million in 1987another record. This overseas market can cushion for a time any reduction in demand in the domestic market.

If you read the weekly price newsletters that are pub-

Overheating economy

By Dr. Randall Johnston Pozdena Assistant Vice President Federal Reserve Bank of San Francisco

lleNY economists expected that the 1988 economy lUlwould be dominated by the effects of the Oct. 19, 1987, stock market crash. However, the economy remained strong throughout the year. This raises the prospect that 1989 will be a year coping with the effects of an overheating economy.

One effect, and the most immediate threat in this regard, is an upsurge in the price level. Signs that such an increase is in the offrng are already apparent in some modest acceleration in price indices. Should the dollar weaken (a prospect widely embraced by economists), the prices of foreign goods would rise, putting additional upward pressure on U.S. prices.

A second sign of an overheating economy may be seen in labor markets. The current unemployment rate (at about 5.50/o at this writing) likely is lower than the current natural unemployment rate of the U.S. economy of 60/0. This suggests that any further expansion of the economy may have the effect of putting upward pressure on wages with an ultimate inflationary effectin a costpush manneron the general price level. Some measures of labor compensation already show such upward movement.

A third factor is the level of utilization of industrial capacity. The Federal Reserve Board's index of capacity utilization is near a l0 year high at present. While new industrial capacity is being added at a relatively high rate, it is unlikely that total capacity will grow enough to dampen pressure on the prices of industrial output. In addition, as the capacity limits of our industrial plant are breached, the rate of real growth in the economy must slow.

In summary, I expect rising inflation and a slowed rate

Story at a Glance

Hot industrial & consumer hardwood markets. overseas sales could reach $1 billion oversupply, lower prices will contlnue in'89.

lished in the hardwood industry, you can see that some species in some grades are selling at lower prices than in recent months. Analysts attribute this not only to conservative inventory practices at furniture plants, but also to the real efficiencies in the hardwood lumber industry. Lumber prices are a function of both changes in demand and changes in supply. At this point in time it appears that the hardwood sawmiller has added enough capacity through second shifts and additional machinery coming on line to produce more lumber than the market will bear at this time. Therefore, the recent downturn in some prices is more attributable to an over-supply situation than falling demand and may continue this way through the first of the year.

Story at a Glance

1989 will cope with rising inflation, slower growth rate. weak housing higheroil prices, lower dollar could change everything.

of growth in the U.S. economy in 1989. In 1988, real growth proceeded at a pace of about 3.250/o for the year. The growth rate of real GNP in 1989 is likely to be more nearly 2.250/o to 2.50/0. Combined with a forecasted growth rate of price inflation of 4.50/o or so (versus 40lo in 1988), this yields a forecasted growth rate in nominal GNP of about 7ol0.

The sectoral effects of this outlook presage another weak year in new residential investment measures. In 1988, the rate of residential investment declined by about 3.20/o.In 1989. another decline is likelv as a combined result of a slorler economy and someivhat higher inflation (which may be incorporated in higher nominal mortgage rates). The strength of the decline is likely to be tempered, however, by the fact that housing and housing-related debt continue to provide important tax shields.

There are several provisos to this outlook. The behavior of both oil prices and the dollar/yen relationship in the last year have surprised many analysts. The price of oil has remained low, and the dollar has remained relatively strong against the yen. Both of these factors have tended to keep price pressures low, but also have tended to stimulate U.S. growth. Should either of these trends reverse sharply, the rate of price change and the rate of growth of the economy would be altered.

The opinions expressed here are those ofthe author and do not necessarily represent positions of the Federal Reserve Bank of San Francisco or the Federal Reserve System. Dr. Pozdeha is the author ofthe recent book, The Modern Economics of Housing (Quorum Books, llestport, Connecticut, 1989-ed.

Lumber use off

By H. A. Roberts President Western Wood Products Association

ETAILERS who look to Western lumber as a prof- It itable portion of their business should find those products continuing to contribute their share. But the complexities of modern society - economic, political, environmental and socialcan be expected to distort those patterns of demand and supply with which we have become comfortable. This will pose challenges both to lumber producers and those in the distribution trades.

But each negative seems to have its positive counterpart. Take housing as an example. Our forecasts register 1.4 million starts for 1989. down from 1.45 million starts pro-

Story at a Glance

Industry production capacity will easily supply a slightly less robust demand in '89... despite 1.4 mlllion housing starts, homes are using more wood per unit . . . repair markets will be strong.

pared to all lumber consumption actually will climb from 33.90lo this year to 34.20/o in 1989.

A similar lumber use picture is developing in the repair/remodeling market.- In 1987. the natioi's consumer d-i-yers and professional contractors used a record 15.38 billion board feet of lumber in expanding, modify- ing and improving residences and othei structlures. This is projected to decline to 14.86 billion board feet in 1988. and drop again in 1989 to 14.4 billion board feet

jected for 1988.

The positives, however, are that new residential construction is using more board feet per square foot (more new home designs than ever include wood-based outdoor decks) and we appear to be in a trend where new single family homes are being built bigger.

For these reasons, WWPA statistics show that on the average each single family U.S. home now consumes 12,700 board feet per house. Just a decade ago the average was 10,500 board feet.

The WWPA expects home building to consume 15.5 billion board feet in 1989 as compared with 16.1 billion feet this year and 17.8 billion feet in 1987. But on the plus side, we project the ratio of housing's needs as com-

Treated

sales up

By Steve Ryan President Western Wood Preservers Institute

E WERE pleased to see from the latest industry data that there has been an overall 50/o increase in sales of pressure treated wood. For wood treated with waterborne preservatives, there was a 120lo increase. In round figures, three-fourths of the treated wood being produced is now being treated with waterborne chemicals.

This should be exciting news for dealers, as about 500/o of waterborne treated wood is utilized for decks reaching the market place through retail businesses.

Homeowners built over 1-l/2 million decks in 1987, according to

McGraw_Hill. an build l-3l4 million decks this vear. A and will probably burld mllllon year. A typical deck will cost about $4,000 for labor and materiali.

Not too long ago, most decks were made from costly cedar and redwood. But with the introduction of less expensive, longer lasting pressure treated wood. homeowners' attitudes toward building wood decks changed. Along with this came_changes in building codes requiring pressure treatment of exterior wood. and in construction and dealer practices.

Consequently, the market for pressure treated wood

AC?il, the.brighter side: back in 1978, the U.S. repair/ remodel market required only 440/o as much lumb6r as the new home market. By 1987, when overall consump- tion was breaking records, the ratio almost doubled wh6n it shaded 86%. This year, WWPA's forecast shows repair/remodel using 920/o as much lumber as new housing. Next year that figure will hit almost 930/0.

. The trend.is strong and carries enough momentum to show every indication that sometime late in the next decade (maybe sooner) repair/remodel lumber require- ments will actually exceed those of the new home-

The Western lumber industry will be providing about 39 to 400/o of the lumber going into America's horie construction and repair/remodeling markets. The industry's productive capacity, proven by easily meeting the record demand of 1987, should serve quite readily t6ose slightly reduced market needs indicated for 1988-and 19891

at the retail level continues to be impressively dynamic. In the early 80s, wood treating production increased by 25-300/o a year, due to the increasing acceptance ofpressure treated wood by consumers and builders- and increased remodgling_of existing homes due to sharply rising housing prices. Today this upward trend continu-ei.

In 1988, the best estimates of industry sources indicate that approximately 20 billion board feet of lumber. or 100/o of the total U.S. lumber sales, will bepressure treated. Strong consumer acceptance of treated wood. its durability, long -service life and increasingly a{Iordible price bode well for future markets.

Although there have been concerns about the environmental suitability of pressure treated wood. it is easy for the average homeowner to properly and safely utilize the waterborne preservative treated wood on the market today. The wood products industry has invested heavily in educating consumers on the proper use of pressure treated wood. It is important that dealers pass this information on to their customers. since the most recent survey shows an information gap at the retail level.

Story at a Glance

Pressure treated wood sales up So/o. nearly 2 million decks to be built in 1989. dealers must close consumer information gap.

Hardline competition

By Roger E. Peterson President Ace Hardware Corporation

I f' tf'S true that the past is prologue to the future, the I hardlines industry is in great shape to continue its im-

retailers will be to get a fair share of their segment by implementing action plans based on consumer research.

Simple to say, but obviously not as simple to do. In the hardlines industry, working hard is a "given," but it will be "working smarter" that will determine success today and in the future. That includes utilizing technology to its full advantage to reduce costs and free personnel to do

a better job of selling. It also means being in stock, selecting and training good employees in a shrinking labor pool, fine tuning merchandise assortments, communicating benefits to customers, knowing your business and those you serve, and doing it better and less expensively than your competition.

Over the past several years we have seen an emphasis on "new ways" to go to market and "new concepts" of retailing, many of them based on price alone. Some have been successful; many others are now a painful part of hardlines history. While new concepts will always be an

Industry's challenge

By Al Leitschuh, CAE Executive Vice President National Building Material Distributors Association

HE BUILDING products industry has faced numerous challenges over the past decade. Direct buying, increased competition and an unpredictable economy have played niajor roles in the modernization of the building products distributor and manufacturer. Today we are faced

with an even greater challengeeducation, which affects our industry at all levels.with the last of the "baby boomers" entering the work force, a shortage of young professionals is evident. Business technologY is changing with new demand on employees. A competitive business environment places emphasis on eduand refine employee productivitY. catlon to lmprove

Story at a Glance

Shortage of peopleentering industry long range program needed hard times possible.

Story at ? Glance

intriguing and necessary part of our industry, more conventional, but more professional ways of doing business will receive greater emphasis in the future. Quality, value, customer service, competitive prices and good selection will be words we will hear often as consumers become more knowledgeable and sophisticated' pressive rate of growth even with increased competition and a gradually maturing market. The challenge fo1

Hardlines industry growth continues. '. working smarter will be vital. professionalism must be emphasized fiercer competation.

As distributors, we too must be in touch with the needs of the retailers we serve and provide them with a total retail support program to help them to prosper in this more competitive and maturing market. And we can do that by being better listeners... by providing the forum to let retailers in different regions of the country identify their concerns.

There is a sense of excitement in the future of this industry, and that excitement comes from identifying the challenges we face and being able to turn them into opportunities for even greater growth. The rewards will bb-there for those retailers committed to excellence in merchandising, store design, advertising, employee service, product knowledge, training and customer service those retailers who know their store, their markets and how to sell and service their customers better than their competitors.

Comprehensive education is needed for the industry to prosper. The association believes it has no greater responsibility than to help companies find answers to educational problems. After more than a year of research and planning, we have established the Education Foundation, dedicated to advancement of the building products industry.

This program will meet the industry's education challenges to address critical education concerns. Programs will be directed at four major areas: ceo, owner, operator; operations management development; sales, and manufacturer/distributor.

Innovative and needed programs such as a comprehensive audio/visual series on management topics and inside sales training will be developed. A building material distribution management institute will be organized at a major university. Aimed at mid-level managers, it will teach disciplines for advancement to senior management.

Seminars will be held to train employees in sales and marketing responsibilities. Scholarships, identification of college programs to prepare students for building products distribution and management positions, and establishment of building products distribution programs in educational institutions will ensure quality professionals entering our industry. A program to publish research studies and articles will benefit both professionals and the industry.

The correlation between continuing education and business success is understood by those companies which enjoy prosperity. However, the lack of appreciation for this correlation could very well forecast hard times for others.

Redwood big in R&R

By Tom Ingham President Simpson Timber Co.

A FTER an improved 1988, general market activity in F redwood is expected to be slightly offin 1989. While dramatic shifts in interest rates are not foreseen. slowlv

rising rates will likely influence new home construction, with as much as al20/o decline in new home starts.

On the positive side, however, one of redwood's biggest markets, home repair and remodeling, should experience the same strong demand next year. According to the Census Bureau, Americans spent $37.3 billion on alterations and improvements on single family homes in 1987. In fact, homeowners spent a third as much fixing up existing homes as building new onesa trend which augurs well for redwood, a mainstay of the do-it-yourself market.

Given redwood's high performance standards, and, to a lesser degree the public's concern over toxics, homeowners and contractors are likely to look at redwood as an increasingly viable alternative to treated wood for deck construction. As a result, we expect to see growth in demand for redwood decking products outside of the

No doom-&-gloom

By Robert C. Doran Director, Marketing Research & Planning Gold Bond Building Products

T Ug HOUSING market is not a doom-and-gloom I forecast for 1989, but overall production will be less than expected.

Housing starts that reached 1.8 million in 1986 and 1.6 million in 1987 are now in the 1.4 to 1.5 million range in 1988. Several factors are contributors:

(1) Higher fixed and variable mortgage rates. Fixed rates were at 10.50/o at mid-year, and by comparing the l2-month averages, fixed rate mortgages were 34 basis points higher in 1988 than in 1987.

(2) The higher inventory of existing and new homes over last year. Since last year, existing home sales have fallen 6.9% and new home sales have declined 6.40/0. lt is very likely the downturn in sales has negatively affected housing starts.

Story at a Glance

Single family starts will outpace multis higher fixed and variable interest rates home ownership rates decline.. single family homes get bigger, use more material.

traditional Western markets, specifically in the Midwest and East.

The development in the coming year of structural ratings for appearance grades of redwood could also strengthen demand. Adoption of such standards would broaden the market base considerably and allow us to compete more effectively with existing structural grades of other species.

Over the past year, Simpson has also made substantial improvements in tight knot siding products. Coupled with price and availability, these changes should positively influence specification and use across the country. For other air seasoned/P.K.D. common grades, tighter grading, improved yardability and product appearance will add to overall popularity and customer acceptance in '89.

Story at a Glance

Redwood hot in $37.3 billion remodeling market. moregrowth in decking . . newstructural ratings will accelerate demand.

We remain concerned about increasing environmental pressure to restrict or halt old growth redwood harvesting in California. Legal challenges and regulatory bottlenecks may result in reduced product availability and increased cost over the long term.

(3) Multi-family starts are likely to be low in the foreseeable future due to overbuilding in some regions and the impact of tax reform.

All regions are showing declines in permit activity this year. Permits in the second quarter of 1988 suggest that the Midwest and West are still fairly strong but that the Northeast may be showing some weakness.

Single family activity, driven by trade-up demand, continues to remain stronger than multi-family. Multifamily starts rose l2o/o at mid-year, but permits fell by an equal percentage.

Home ownership rates remain fairly constant at the national level, but vary considerably by region, age, income and family composition. Among young households, the home ownership rate has declined steadily since 1980. In the second quarter of 1988, the overall ownership rate remainedat63.70/0, the lowest rate in two years.

The median size of single family homes is increasing, up from 1,680 square feet in 1986 to 1,755 square feet in 1987. In addition, the number of bathrooms, bedrooms and amenities per house continues to increase.

Despite the trend toward increased amenities, use of brick as an exterior siding has been declining. Vinyl siding has become the exterior siding of choice and has doubled its share of the exterior market in all regions except the West, where stucco remains most popular.

Gypsum wallboard continues to remain the most specified interior finish material in new single family homes with 930/o of the total wall area finished with gypsum wallboard. Six percent of all interior wall area is covered with plaster-coated gypsum wallboard. Eighty nine percent of all gypsum wallboard used is 7/2" thick.

Total new residential construction demand for gypsum board is expected to be 8.92 billion square feet in l 989.

Cedar more stable

By Jeff Loth President Loth Lumber Co.

T ge STRENGTH of the market for 1989 appears to I be in the remodeling sector. If this is true, western red cedar will be at the forefront regardless of housing starts. Its pleasing appearance and stability make it flexible in the remodeling market.

As the year begins to unfold with the elections over and a status quo in government, I believe we will see a much more stable and consistent market place than most of us have experienced in the past few years. That is if sound judgement is used in the marketing of the products.

We must not forget that we are livine and working in an ever chang-

I

changing mode and things are happening fast. A manufacturer must read these changes and react quickly if he

is to stay competitive in these times. As long as we are willing to accept change and move quickly, the future will be strong for all in the lumber industry.

The WRCLA is taking a more active role in promoting cedar throughout the market place. As its president, I can safely say we are gaining strength.

The export market for finished lumber is growing at a fast pace. This opens more doors for a manufacturer to sell his finished goods and can smooth out some of the

Recession possible

By Lynn Reaser Vice President and Senior Economist First Interstate Bancorp

HE ECONOMY is likely to slow substantially in I 1989, with a better than even chance of a mild recession. The housing industry will be dampened by higher mortgage rates in the first half of 1989 but should begin to recover by the latter part of next year.

IA recession in the U.S. economy is not inevitable but will depend on two conditions: (l) inflation rising to a level of 5olo or above and (2) the Federal Reserve responding with measures to slow the economy significantly. We believe any recession would be mild, beginning in the second quarter of 1989 and lasting only two to three quarters.

Actions by the Federal Reserve to control and reduce inflation before it moves much higher will prevent the severe kind ofdownturn experienced in the early 1980s. The national unemployment rate is likely to move slightly above 60lo by the end of next year, compared with a peak of about llolo in 1982.

Interest rates are likely to peak in the first halfof 1989 and then drop quickly as the economy slows. The bank prime rate could reach a peak of about l1% in the first half of 1989 and then fall to around 90/o by year-end. Rates on fixed-rate, 30-year mortgages could move slightly over I l0lo in the first half of next year and then ease towards 100/o by the end of 1989.

tremendous swings we have had in the past. There must be a concerted effort on quality and grade to keep this momentum going. Because it is unique as a species and has adaptability, cedar has the flexibility to be a strong export product.

U.S. western red cedar, which constitutes 30 to 400/o of all western red cedar, threatens to be in short supply due to the shortage of second growth logs which yield a top quality, tight knot product. Available raw logs for manufacturing into lumber are under a great deal of pressure. Exports of raw logs are creating an unnecessary shortage in basic log needs for U.S. mills.

Story at a Glance

Strong remodeling market will aid cedar ... export market growth... marketplace consistent. western red cedar may be in short supply. price rises likely.

All cedar products including siding products will be forced upward in price, but this should be a controlled rise from current levels. The change should be apparent immediately and continue in a sustained manner through 1989.

The cedar fencing market is strong and at present it appears it will continue strong throughout the first and second quarters.

Sawmills are taking control of their destiny by having a greater variety of value added products and more sophisticated marketing habits.

The housing industry no longer bears the primary brunt of swings in economic policies. Financial market deregulation means that lenders can still attract funds, although at a higher price. Development of the secondary mortgage market and such instruments as variable-rate mortgages are also important buffers for the homebuilding industry.

Nevertheless, the housing industry will experience about a 40/o drop in new starts in 1989 to a total of 1.41 million units. This will follow a drop of nearly l0% in the current year. The good news is that housing will also lead the next recovery with an estimated 100/o jump in new starts in 1990.

Story at a Glance

Economy likely to slow chance of a mild recession interest rates will peak in the first half, then drop . . . housing starts: 1.41 million.

On balance, the homebuilding industry is likely to experience a more difficult year in 1989 in response to a lower level of new construction. Certain factors will help to offset that weakness. First, although permits for new oflice and other nonresidential buildings will decline next year, projects started in 1988 will need to be completed and furnished. Second, the home repair and remodeling market should record moderate growth as homeowners may decide to renovate their present homes rather than move.

Builders Emporium, Ort'ltard Supply Hardware and O/e's may be sold off as Blackstone Group and llt'esserstein Perella & Co., which have made a tender offer for Wickes Cos., plan to sell most or all of its retail operation . .

Ernst Home Center. Moscow. Id., has remodeled, adding a furniture dept. .. Hylton Lumber ol Alamosa is the new name for Home Lumber, Alamosa, Co., Picie Hylton, owner and Jimmy Lopez. mgr....

Hayward Lwnber C'o., Claremont, Ca., is being liquidated with the Lucerne Valley and Barstow units being acquired by Imperial Valley Lumber Co., Claremont, which is operating under protection of Chapter I I bankruptcy... Dave Kirk and Lee Morton are negotiating to purchase Mead Clark Lumber Co.. Santa Rosa, Ca., from owner Dusty l)estruel

HomeClub, Int'. is building a 103,909 sq. ft. warehouse store with a 9,880 sq. ft. nursery, due to open March '89, in Boise, Id. . Alomosa Lumber Co.. Alamosa, Co., has remodeled, adding 1500 sq. ft. ofsales space, to celebrate its 59th anniversary...

Woodburn Lumber Cb., Woodburn, Or., is celebrating its 60th anniversary ... Long Beach Plywood, Long Beach, Ca., is 40 yearsold...

Ready Made Builders Suppl-v. Salt Lake City, Ut.. has formed a new div., Ready Made Lumber Jackson .Street Lumber Co.. Hayward, Ca., htrs been voluntarily closed after 48 years due to the retirement of [:'rank Diamantine, owner ... Luntbermeil's Building Centers unil in Kent, Wa.. has closed. .

Rancho Home Improvemenl Center has closed its Glendora, Ca., operation and opened a new Palm Springs, Ca., unit in addition to relocating corporate offices to Rancho Cucamonga Ca. . . . Crcstwootl Forest Prodtrt'ts, Bethel Island. Ca.. was never partially ownecl by Ron Dybas, as was incorrectly stated in the Octoberissue...

Ed Holderness .\upplies is opening a new facility in Chandler, Az., hoping to be operational next month Cal State Forest Produtts has moved down the street to larger quarters at 1949 S. State College Blvd., Anaheim, Ca....

Marrluart- Wol/b Lumhrr Cir.'s Corona, Ca., plywood div. has moved to a larger sales office and distribution center in Grand Terrace, Ca. . RLD Trading, [nc. has opened an office at 240 Main St., Oakley, Ca.. Ron Dybas, owner

Eureka, Ca., lumberman George Schmidbauer has started production athis Cal-Tex Lumber C'o. sawmill in Nacogdoches, Tx.. manufacturirrg 8'-24' southern yellow pine dimension and commons lumber, Finn Hurley. sales mgr. . .

Willamette Industries will close its Sweet Home, Or., sawmill permanently on Feb. 3 and place the second shift of its Midway Veneer, Sweet Home, on lay-off . . . Timber Product Soles Co.. Springfietd, Or.. is now handling sales for Medply, lnc., White City. Or....

Hamptttn A/.litiatcs plans to acquire Fort llill Lumber Co.'s plant and equipment at Valley Junction, Or., by March 1,

marketing to be handled by Humpton Lumbtr .Salcs Co. . .

Lou isia na- PaciJit' Corp.'s stud mill in Saratoga, Wy., destroyed by fire last May, is rebuilt and back in production with sales being handled from the Hayden Lake, Id., office . .

Western Machinery .Sa/es has moved from lrvine. Ca.. t"o 1247 N. Lakeview No. B" Anaheim. Ca. 92807 .. . Sumwood, Inr'.. Palos Verdes Peninsula, Ca.. is representing Createc Forestry ,lystems (tallying devices) in the westernstates...

Negotiations between Louisiana-Paci.fic Corp. and Doman I ndustries, Limited have collapsed (see p.39 for story)...

Louisia na- PaciJic Panel Products, Lrd, plans to build a fiber gypsum plant on Cape Breton Island. Nova Scotia. Canada . .

Manville Corp., Denver. Co., plans to sellits Holaphane lighting unit based in Newark. Oh.. ..

U.S. exporls in Aug. of so.liv,ood lumber (latest figs.) hit the all time one month record of more than 300 million board f'eet

Maximum inlerest rate fat federally backed VA home loan mortgages has been lowered to l0%r by the I/eterans .4dministration . .. mortgages rates have hit a seven month low with fixed rates available at under l}u/o .

Oct.'s seasonally adjusted rate of I .55 million housing starts was up 1 .2{th .. single family home starts climbed l}ott; multifamily, 0.20/o, building permits, 7.40h. . . biggest part of the increase was in the west, especially California

r-lql/n/lR t:rl:< llE i(q IllE\!tVU D,_l-rL!r re

ARIZONA ADDITION

P...rP.......ff'.,.

The addition in this case is two added to three: two new San Antonio buildings to complement the three we erected in 1984. All five are 40' x lz0'.

Built for Universal Forest Products ( formerly Far West Fir Sales) at their Chandler, Ar., facility the structures prove that customer satisfaction is as much a part of a San Antonio building as the poles, roof and walls.

Over the years, a majority of our customers have asked us to remodel, expand, enlarge or add to their original structures.

Two of the buildings are for lumber storage, one for a gang nail truss

plant and two for plywood storage.

When your math proves you need to add, call San Antonio. We have no equal when it comes to building.

Mike Esposito, mgr.

1280 Unit F-1

West Lambert Rd. Brea, Ca. 92621

@a3) 694-8361

(774) 529-779,0

P.O. tsox 136

Grimes, Ca. 95950

(sr6) 437-2s0s

Cownuffior G0.

DECEMBER

International Hardwood Products AssociationDec. 8, regional meeting, Portland Airport Holiday Inn, Portland, Or.

Portland Wholesale Lumbermens AssocietionDec. 9, annual Christmas party, Jantzen Beach Red Lion Inn, Portland, Or.

San Joaquin Valley Hoo-Hoo ClubDec. 10, Cal Bowl game & tailgate party, Fresno, Ca.

W.O.O.D., Inc.Dec. 14, holiday luncheon, Denver, Co.

Spokane Hoo-Hoo Club - Dec. 15, meeting, Spokane, Wa.

Dubs Ltd.Dec. 16, golt tournament, Richmond Country Club. Richmond. Ca.

JANUARY

Mountain States Lumber & Building Material Dealers AssociationJan. 10, blueprint reading seminar, Denver, Co.; Jan. 13-14, residential framing/lumber estimating seminar.

Lumber Merchants Association of Northern California -

Jan. 13, board of directors meeting, Monterey, Ca.; Jan. l3-14, management seminar, Asilomar State Park, Pacific Grove. Ca.

National Housewares Manufacturers AssociationJan. 15-1E, international housewares exposition, Mdormick Place, Chicago, Il.

Mountain States Lumber & Building Material Dealers As' sociationJan. 16-1.8, residential framing lumber estimating seminar, Phoenix, Az.

Western Building Materials AssociationJan. 16, district meeting, Fairbanks, Ak.; Jan. 17. Anchorage.

Oakland Hoo-Hoo ClubJan. 17, initiation meeting, Francesco's Restaurant, Oakland, Ca.

Black Bart Hoo-Hoo ClubJan. 18, annual Industry Night' The Broiler Steakhouse. Ukiah, Ca.

Humboldt Hoo-Hoo ClubJan. 19, annual crab feed, Eureka Inn, Eureka, Ca.

Spokane Hoo-Hoo ClubJan. 19, initiation, Club Night and Past Presidents Night, Spokane, Wa.

Inland Empire Hoo-Hoo ClubJan. 20, dinner/initiation, Indian Hills Country Club, Indian Hills, Ca.

Shasta Cascade Hoo-Hoo Club - Jan.20, initiation meeting, Redding, Ca.

Western Building Materials AssociationJan. 24, district meeting, Spokane, Wa.; Jan. 25, Pullman, Wa.

Western Building Materials AssociationJsn. 26-29, Young Westerners Club conference, Tacoma Sheraton, Tacoma, Wa.

FEBRUARY

Central Builders Supplies Co. - Feb. E-9, annual buying show, Commonwealth Convention Center, Louisville, Ky.

Los Angeles Hardwood Lumberman's Club - Feb. 10, Old Timers Night, Embassy Suites, Downey, Ca.

California Hardware Co.Feb. 11-12, Sentry market, Pomona Fair Grounds. Pomona. Ca.

Marketplace sampling ensures treated wood quality

llt HEN it comes to getting full lU value for their money, purchasers want to be sure of a product's quality. Assurance of quality is the guiding principle behind the quality control system, known as the American Wood Preservers Bureau (AWPB) Program, established by the treating industry. From treatment plant to purchase point, the program protects the interests of the buyer.

Story at a Glance

How a regional inspection program guarantees quality of pres. sure treated wood in marketplace. interests of consumer and dealer are protected by American Wood Preservers Bureau program.

One aspect of assuring the quality of pressure treated wood is marketplace sampling by AWPB inspectors and AWPB certified inspection agencies. This has increased significantly during the past four years. Inspectors perform samplings at retail yards, wholesalers and government receiving centers.

The American Wood Preservers Bureau was established by the industry to serve as a third-level overview organization to help assure that pressure treating plants adhere to American Wood Preservers Association (AWPA) treating standards. AWPB has two basic functions: (1) certifying Quality Control Inspection Agencies; and (2) monitoring those agencies by making periodic unannounced inspections at participating plants and destination points.

I joined AWPB as an inspector in the fall of 1984 following my retirement from the Southern Forest Products Association (SFPA). My job is to strengthen the AWPB's overview sampling in the coastal

By Truman Phifer American Wood Preservers Bureau

states including Texas, Arkansas, Louisiana, Mississippi, southern Alabama and the Florida panhandle, plus occasional assignments outside this territory.

PEilETRAII0il of preservative in core sample of pressure treated w00d is measured by Truman Phifer, AWPB reg. inspector, using a dye.

My previous 17 years of held experience with SFPA in this same territory greatly expedited my contacts with treaters and destination firms. In fact, there are few retail lumber yards, wholesale lumber distribution centers or stocking lumber wholesalers from Texas to Tallahassee that I have not contacted at least once in the past 3-l/2 years, taking core samples from pressure treated wood at most of them.

Destination work is one of the most important checks the treating industry can perform to firmly establish the reliability and credibility of pressure treated wood with building materials suppliers and consumers. Practically without exception, once the owner or manager understands

(Please turn to pase 62)

('Erertrotrt, Co. l9E9tt

As wecc[ebrate our Tothyear inbusirtcss, DMK-Pacifrc fiarw{ for Derati-s, 79, Mkfraef, 76, fidKftie, tS) e*ads its sitrccre appreciation to its srstomers anl supp[iers. We wi.sh sII the 6e**? yy andyours for tw*tyenr an{tfteyenrs hryond. tvtay tffu fwtidny sensot 6e your 6e*, He*[th, ftoppuless, anil tong titfe.

lJsnkAI{rirh' Bi[[cressEtt Rnndy Co[Ins, HlorrietDurfriry Horo[dEuerst, MattPerry, JofutGones, Bob Pifls{o, Gory Sto,vart, Xcm{y Wafton, Linda on{ ovrig(* Curr:afl

Dwight Curran

*H,cf'-Js /-lTv' -J- o

STATES MOUNTAIN

FRED CARUSO executive secretary

T HE MSLBMDA Board of Directors

I recently approved a new logo commemorating the countdown to the Association's l00th anniversary in 1991.

The logo has the words, "The Lumber Dealers" and "98 Years" in bold letters and is designed to be used in 1989. In 1990 it will be changed to read, "99 Years" and in 1991 it will say, "100 Years".

A three-day Residential Framing Lumber Estimating and a one-day Blueprint Reading seminar will be held next January in Denver, Co.

The Blueprint Reading class is scheduled for Jan. 10. The Estimating seminar is scheduled for Jan. 11. 12 and 13. Both programs will be held at the Holiday Inn Downtown in Denver.

Both courses are taught by Bill Darling of Ontario, Canada, a management consultant whose special emphasis is

personnel training for the retail lumber industry.

The three-day estimating class is tentatively scheduled to be repeated in Phoenix, Arizona, Monday through Wednesday, January l6-18, 1989.

Two Building Material Shows are scheduled for March. Two-day buying and product education shows will be held in both Denver and Salt Lake City, Ut. The dates of the Denver show are March 9 and 10. at the Denver Merchandise Mart. The show in Salt Lake City will be held on March 23 and 24 at the Salt Palace Center.

The scope of both shows will be expanded this year for not only buyers to place orders on the show floor, but also for retail sales people and other employees to gain product knowledge. Many new products and services will be presented and both shows will feature a wide selection of building materials from roofing to particleboard. The Denver show will feature 138 booths. The Salt Lake show will feature 62 booths.

The Arizona Lumber & Builders Supply Association is in the final stages ol disincorporation, says ALBSA president Dave Runyan, Babbitt's Home Center, Flagstaff, Az. Runyan has been nominated to serve as one of two Arizona representatives on the MSLBMDA regional board of directors.

Arizona members have been joining MSLBMDA, although many are waiting until all ALBSA debts are cleared and the disincorporation is complete, says Mountain States president Steve Olson, Build-Rite Lumber & Supply, Rawlins, Wy.

In addition to the expansion of the board, other changes will be required. Our logo will now depict six states as the ends of stacked timber. And trademark flag settings used as table centerpieces at most meetings will now include the flags of six states.

Arizona represents a major addition to the Mountain States region with 113,417 square miles of land and nearly 2.8 million residents. It ranks first among Mountain States in the number of residents per retail yard, with 13,938 persons for each of 195 locations reported.

Two programs were held in Phoenix this summer to build visibility and gauge the interest and needs ofthe dealers and suppliers.

LMA NTWS

GARY L. SMITH executive vice president

I Vn's third Owners/Partners MeetL ins concluded on Saturdav afternoon. -Nou.rnber 5. 1988 with a sail around San Diego Bay on the Continental I tri-maran. It provided a relaxing end to the 2-1/2 day meeting that offered a lot of valuable and challenging information to those attending.

The event was held at the Marriott Hotel in San Diego for the second year in a row. We began on Thursday, Nov. 3, with an update on labor law information by Paul Simpson of Carr, McClellan, Ingersoll, Thompson and Horn. If Paul's comments didn't raise the collective blood pressure in the room with his discussion of wrongful termination and discrimination, partner Arthur Bredenbeck certainly succeeded during his presentation on employee benefits programs; particularly while explaining Section 89 of the Tax Reform Act of I 986. You will most certainly hear much more about Section 89 in the next few weeks and months. It goes into effect January 1, 1989, and requires all businesses to closely examine all employee benefit programs, including health and welfare plans, for discriminatory practices. The act provides for penalty excise taxes if you compute wrong or fail to report as income any excess benefits paid to certain highly compensated individuals.

The following day Jim Pence brought the group into the real world of employee beneftts and compensation programs with his discussion of the incentive plan he and his brother developed for their lumber businesses in Indiana. The day's session was concluded with roundtable-type discussions drawing on the experience of the LMA participants.

The working sessions concluded Saturday morning with a security program provided by Jack Case of John D.

Case and Associates of San Diego. Jack concentrated on the subject ofemployee theft, but also discussed shoplifting, preemployment screening and testing, and related subjects.

And finally, the harbor cruise, one of many opportunities throughout the time we were there to discuss common goals and challenges in an atmosphere of fraternity and good will. Opportunities like that are really what the association business is all about.

This will be my last opportunity to share editorial space with Fred, Chuck, Wayne, Bill and Wally, as well as Hugh Mungus and Freddie Fungus. Even though my new position at Northwestern Lumbermen's Association separates us from the West geographically, we look forward to staying in touch at regional and national meetings and through our continued association with this great industry of ours.

minute of differences. The result is that virtually no one wants to take a chance and expose themselves to the least liability.

EDr,CgNrI-Y the association office

I lhas had a number of calls relative to interchangeability of lumber grades. This is not something new, but a rehash of an old story.

Everyone is aware of the fact that lawsuits are being filed over the most

There are times when the substituted product may be better for the intended purpose, but it's not acceptable because it's not what was intended to be used.

To be more specific, we have over the years since the grade has existed used either stud grade in 2 x 4 or standard and

Golumbia Harbor Lumber Go.

Custom Remanufacture

Resawing:

I 54" Bandmill

I Computerized Line Bar Setworks

r Rough Double-end Trim

r Sortino Chain - 150 ft

Drying:

r Steam Dry Kilns - 2,000,000 Bd. Ft Capacity Per Month

r Dry Storage

Planing:

r Patterns - Splitterhead - Rougherhead

r WCLIB Grading

r Finish Double-end Trim

r Vinyl or Paper Wrap

Shipping:

r 15 Acres Paved Yard

r RailSiding BN & UP

r l-5 Direct Access

WAYNE GARDN ER executive vice president

better interchangeably as a stud in residential and light commercial construction. The two grades have been considered adequate for the job intended, regardless of which was specified.

Now, due to the litigious nature of society and the fact that specifiers determined that stud grade can be shown to have greater strength value than standard and better, building departments, not universally but to a large degree, will not accept standard and better as an equal substitute for stud grade.

The argument they put forth is valid on the surface. Stud grade is specified, standard and better is shipped with the Sdt & Btr stamp on the product. Since the building inspector is not a grader (and we don't want him to be) he concludes that all the material is standard and therefore not of the same strength value as stud grade. The plan was stamped stud grade and that's what must be furnished. End of story? No, there is a way around this. But it isn't easy.

The framer or builder must obtain from the engineer who calculated the structural values needed a letter stating that standard and better would be acceptable in lieu of stud grade. This has to be walked through the building department and a no value change order issued, which becomes a part of the plans to be held by the department for eternity or however long they have to hold that sort of thing so that when some homeowner sues, the building department can have their defense ready.

The way to avoid all this might be to seek from the framer or from whoever is furnishing the lumber list, the information as to exactly what is specified on the set of plans that has been approved by the building department.

This is a rather Pollyanna view, but there are some problems being created by virtue of substitutions. The word comes back that such and such a building department won't accept standard and better studs. The statement is correct when it's made, but needs clarification to the extent that it's a particular job on which they won't accept them, not on all jobs in that particular city.

Call LASC if you have a problem relative to grades on a job site. Assistance is another of the manv benefits of association membership.

Quality Contrcl Starts

at a Very Early Stage at Pacific Southeast

fi:ffir, rD

'D) Forcst Prcducts Whatever happened to . . .?

8y Mett Moulder

Al O'Brien, sales manager, Collins Pine Co., Chester, Ca.? Since his retirement in 1983, Al has been one of the regulars at the Chester Colf Course, but between rounds he is getting the family home ready to sell. lt seems Al still has webbed feet and vearns to return to the dew covered fairways around Portland, Or.

Back in 1949, O'Brien received a degree in Forestry from Oregon State U. and immediately headed soutt at the beckoning of Coliins Pine. After a short stint in the wholesaling world at Leo H. Ryan Lbr. Co., Portland, in 1952, it was back to Clester in 1960 to become assistant sales manager at Collins. ln 197O Paul Foote retired from the head sales manager position and Al was named as his replacement.

There's good news and bad news for Al's many friends in the industry. Thb bad news is he doesn't miss the lumber biz. The good news: he misses his many friends in the wood products game. Al has a lot of them. He was one of the CREAT ones.

Al O'Brien and I have something in common, although in recent years, we've been reluctant to admit during football season that we are Oreg,on State alumni. Al knows, as I do, how it feels to be the brunt of"bad iokes over the years.

For example, the completely tasteless one about Bear Bryant, former Alabama coaching legend, asking in his will that he be laid to rest in Corvallis, home of OSU, so that he could get as far away from college football as possible. Or the one about the judge presiding in a child beating case awarding custody of the child to the Oregon State football team on the grounds that they couldn't beat anyone. lt looks as though things are turning though, Al. Maybe l'll see you at the Rose Bowl game again one of these days. Who knows?

On the lighter Side

We appreciate the many cards and letters pouring in complimentins us on this column. Both of them were enioved by the entire staff. W"e especially liked the card from the reader in Yu5a City who said that Piineville, Or., would have beaten out Yuba City in the Rand McNally rating of the worst place to live in the U.S., but the rating team from Rand McNally spent several days looking for Prineville and couldn't find it!

Future Dates

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

f,l

OPERANNG OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Dallas. Tx.75243

O

trlnrrER what rhe forecasters

I ! and prognosticators say about next year, sales and profits will still be generated by the effective use of people and assets. The fittest will survive. Here are 10 questions (with comments) to help you determine how your people and assets were employed this past year:

(1) Did your company own and make available to all employees a college level text book on retailing?

(lfyou answer no, you're running a space station without an owner's manual.)

(2) What formal classes or seminars relevant to your business did you and/or your management attend?

(Doctors, lawyers, teachers, etc. are all required to hone their skills.)

(3) Other than on the job training and indoctrination, how many hours of formal (non supplier) training were provided by your company for each of your employees?

(Grow people and the rest will follow.)

(4) How many employee suggestions to improve your operation were received and/or adopted by your company?

(When I talk, I don't learn anything.)

(5) Excluding public relations and incentive travel plans, how much was spent to tell your customers why they should buy goods and services from your company?

(How can anyone know how good you are unless someone takes the time and makes the effort to tell them.)

(6) What are the names of your customers who consistently appear on the

list of Receivables over 60 days old?

(Most cornpanies lose all profits somewhere between 30 and60 days.)

(7) Did you read the clocks on your fork lifts so that you knew how many hours per week each was used?

(Effective is 25 to 30 hours per unit per 5 day week.)

(8) How many items (other than special orders and which ones were they?) produced less than four unit sales each?

(Turnover at 8 to l0 times is very doable; average is 6 times.)

(9) Using Delivered Sales only, on average, how much in dollar sales was delivered with each of the company's trucks?

(Over $1,500,000 is very doable per 2 to 2-1/2 ton truck.)

(10) How much were the company's non-payroll taxes?

(One example - sales of $1,500,000 at 2o/o pre-tax, non-payroll taxes were $10,000. Company's first $500,000 in sales was needed to pay these taxesone-third of its annual volume.)

There are no right or wrong answers, just your answers. Whatever you come up with, you will be better off if your people and assets are more deftly employed each year.

CHUCK LINK executive director

Gflf'PEn penalties are coming for tJcompanies who lail to report or misreport occupational accidents and illnesses. OSHA requires all employers covered by the Occupational Safety & Health Act to maintain a log and summary of all recordable occupational in-

To Gatch A Thief

Losses at the cash register can be combatted by a conscious plan to counteract theft.

. Know who you hire.

. Use testing devices.

o Train new hires by giving them the proper tools to get the job done.

o During training tell employees that you use a shopping service to determine the accuracy of cash handling.

o Tell employees what is expected of them.

juries and illnesses for each establishment, recorded on OSHA Form 202. A second supplementary record for each incident must be kept and recorded on OSHA Form l0l. Both forms must be available for inspection.

OSHA will treat any Form 202 errors as "willful'1or "serious" violations. The agency has proposed fines of $1,000 to $10,000 for unrecorded or misreported

o Correct people takes.

o Reward people work.

Careful, periodic supervision should be made, including:

o Periodically examine the contents of registers for errors.

r Conduct surprise audits and balancing of registers.

o Prohibit personal packages, purses

incidents uncovered during an inspection.

This tougher new stance is the result of criticism OSHA has received for not insisting that employers accurately maintain accident and injury records.

A favorite trick of the dishonest employee is to toss expensive merchandise into the dumpster and retrieve it after hours if the dumpster is located outside the gate. Dishonest employees are often in collusion with the trash handler in this type theft when the dumpster is located inside the gate. You're especially vulnerable if you haul your own trash.

Rotate employees handling trash, periodically inspect your dumpster and pass a rule that all boxes to be placed in the dumpster must be broken down flat.

and other containers near the register.

o Verify accuracy of cash refunds, exchanges and credits by contacting customers. Let your employees know this.

r Routinely transfer employees to other registers or departments.

. Locate registers so that they can be viewed by customers. Indicator windows should be clearlv visible to customers.

Home Genter Show Program

What intrinsic factors distinguish highly successful DIY/home improvement businesses? How will modern technology improve bottom-line profits? What ingredients are key to customer satisfaction? How does OSHA's new standard affect store managers? These questions will be addressed during The National Home Center Show, March l2-15, at Chicago's McCormick Place East and North.

Fourteen programs will be led by leading business and industry experts. Highlights include the "Great Encounter," featuring "In Search of Excellence" co-author, Tom Peters; "The State of the Industry," led by acknowledged industry gurus whose combined sales top $5 billion; and the all-new "Lunch and Learn" series.

Four of the most acclaimed industry innovators will panel the State of The Industry session, Frank Denny, ceo, Builders Square; Bernard Marcus, chairman, ceo, The Home Depot; Hal Smith, chairman, ceo & president, Ernst Home & Nursery; and Robert Strickland, chairman, Lowe's Companies, Inc.

The show's new "Lunch and Learn" series offers buyers and merchandisers, as well as store and department managers,topics including a how-to session on complying with OSHA's Hazard Communication Standard and give-and-take sessions with two of the industry's most respected consultants, Joe Samulin and Steve Herman. For more information about "Lunch and Learn" registration, contact William Fishman, director of education and special events, 619/485-7500, FAX 619/485-7502.

Other sessions scheduled include: "Overcoming Roadblocks to UPC Scanning;" "Export Now;" "Innovations from Overseas;" "Preparing for EDI;" "Cashing in on Installed Sales;" "Pathways to Success for Independent Home Centers."

The National Home Center Show exhibition will feature over 1,300 exhibitors, Sunday, March 12 through Tuesday, March 14 from 9:00 a.m.5:00 p.m. and Wednesday, March l5 from 9:00 a.m. - 1:00 p.m.

How to sell your home center business for the most profit

By William T. Baker Merger and Acquisition Project Manager Geneva Business Services, Inc.

HE DECISION to sell your business can be the most important decision of your life. The typical business owner may sell one business in his lifetime. In this, the biggest single sale of his life, he probably will be overmatched because the average corporate buyer acquires seven businesses every two years.

In a survey of clients, we asked business owners why they were considering the sale of their businesses. Interestingly, the answers ofthese entrepreneurs all were sub-

jective, rather than objective. There were six most common reasons for selling.

Boredom and burn-out top the list. These business owners have seen their business through the tough, early years and aren't willing to stand up to the rigors of accelerated growth or another business cycle.

Lack of operating capital and growth capital are the second most common reasons cited for selling.

Age and health are the next most common reasons. They begin to see

their friends and contemporaries on the obituary pages and they begin to feel less immortal.

Desire for liquidity is another frequently cited reason for selling. The business is a large part of personal net worth, often as much as 60 to 700/0. They begin to understand the "prudent man rule" that no more than 200/o of one's net worth should be tied up in any one asset.

Lack of children's interest is the fifth most common reason. These business owners tell us that their children have no desire to take over the business.

Other interests are another subjective reason given for selling. They want to try their hand at another occupation or another life. Potential buyers far outnumber the sellers. Geneva's proprietary data base now includes the names of more than 10,000 companies and individuals who have bought a business in the past 18 months and are looking for more acquisitions.

In more than 10 years of providing merger and acquisition services for middle market companies, we have found that buyers fall into two

categories - economic buyers and synergistic buyers because often they will be positioned to appreciate the full market value of the selling business.

What most inexperienced sellers need to understand is that buyers are seeking return on investment levels better than they can get from passive, risk-free investment. In addition, buyers expect to see growth potential and synergy possibilities when evaluating home center acquisition candidates.

Today's middle market company buyers range from large U.S. public and private corporations to private investors and investment groups, as well as offshore corporations and private investors.

Offshore buyers represent a growing trend in the middle market. We estimate that of the 15,000 middle market businesses that will change hands this year, some 20% will be sold to international buyers. Buyers from around the world recognize the United States emerg- ing as a corporate tax haven. America's new tax laws reduced. corporate taxes to 340lo in 1988, among the lowest worldwide, mak-

ing the U.S. a tax haven. Acquisition is a logical method for entry into this market.

Middle market business buyers recognize the profit potential and economic advantages of acquiring an established, profitable, mid-size home center business that is cash positive and evidences good potential for growth. They validate Peter Drucker's axiom that it's cheaper, smarter and faster to buv assets than to build them.

Story at a Glance

Ways to determine af you should sell your business understanding buyer mentality. . taking advantage of tax law opportunities.

Far and away the question that I am most frequently asked is, "Should I sell now, is this really the best time to sell?" Mv answer is. if

it's a question of do you sell when you are ready or when the market is ready, obviously the best time to sell is when the market's ready. The market has never been more ready than now, at least not since the late 1960s. It's a seller's market with record numbers of buyers seeking middle market acquisitions. Today, there is more money chasing good deals than there are deals available.

Another important reason for beginning the selling process now is that until December 31. 1988. buyers and sellers of businesses for under $5 million are exempt from a double taxation that could result from the elimination of the General Utilities doctrine. Businesses selling for $5 million to $10 million are partially exempt until December 31,1988.

This means that even under the new tax law, only one tax on the transaction could be paid until December 31, 1988. After that date, even those smaller to midsize transactions could be subject to a double tax, one at the corporate level on the gain from the sale of assets and one by the individual shareholder upon distribution.

O'Malleys New Marketing Plan

The O'Malley Companies, Phoenix. Az.. have announced a new marketing plan which will refocus their business in designated market areas.

The firm currently operates three product divisions - Retail, Wholesale, and Contract and Manufacturing. Started in 1908 O'Malleys now operates throughout the Southwest and employs more than 800 people.

The new plan calls for continuing all three divisions, but restructuring the business within each one.

Of the 12 retail yards now operating it is possible that some may be closed as the two year restructuring proceeds, according to Duncan Hossack, executive vice president, who is in charge of operations for the

Group Targets Fibreboard

An investment group including Archibald A. "Red" Emmerson, president of Sierra Pacific Industries, Arcata, and Redding, Ca., has been buying stock in Fibreboard Corp., Concord, Ca., and may seek to control the firm.

three divisions. He stressed that no decisions have been made at this time and that yard by yard analysis may result in continued operation for all the yards.

Hossack denied rumors that Southwest Hardware and O'Malley Glass and Millwork were for sale. "They are not being marketed," he said.

A twenty year veteran with the firm, Hossack said that he was "more positive and confident than at any other time due to restructuring actions the company is embarking upon."

Traditionally, the company's roots have been in the supplying of building materials primarily to homebuilders, contractors and remodelers. O'Malleys also operates

According to a Securities and Exchange Commission filing, the group holds a 6.80/o stake, 264,100 Fibreboard common shares purchased for about $3.1 million.

Although an offer by the group in October to buy the company for $17 a share was declined by Fibreboard,

a chain of retail stores, which sell both professionals and consumers.

The new marketing plan seeks to re-emphasize the company's core business to position O'Malleys as the major supplier of building materials to the construction industry in Arizona, and in the El Paso area of west Texas.

Thomas E. O'Malley, chairman of the board, sees the company remaining and growing as an important part of the construction trade in the Southwest. "We're enthusiastic about the opportunities in the markets that we service. We will continue to offer the kind of quality products and service to our customers that have made us successful for the past 80 years."

the group may seek meetings with Fibreboard or continue to acquire stock, according to the filing.

Emmerson purchased 81,100 shares between Nov. 14 and Nov. 23, although Sierra Pacific is not involved in the dealings, according to a Sierra Pacifrc spokesman.

New Hampton Acquisition

Agreement has been reached for the sale of Fort Hill Lumber Co.'s plant and equipment at Valley Junction, Or., to Hampton Affiliates, which includes Willamina Lumber Co. five miles away at Willamina, Or.

Completion of the acquisition is scheduled for March 1. Fort Hill will continue to operate and market the mill's production until the closing, completing its order file and serving its regular customers until then.

A substantial volume of Fort Hill's production has been channeled into specialty items up to 26 feet at premium prices, while Willamina concentrates on low costs, high production and high recovery on a program of 2 inch dimension items up to 28 feet in length. The tributary timber for both mills will be allocated to optimize the potential of both plants.

Fort Hill Lumber, started in 1961 by Ed and Art Moshofsky, has developed into a major independent producer with volume totalling 120 million feet in its latest fiscal year. Production at Willamina for 1988 will total 235 million feet.

Beginning March l, all marketing willbe handled by Hampton Lumber

Sales Co. whose present annual sales volume totals over one billion feet of Western softwood lumber from producers all over the Pacific Northwest.

Hayward Lumber Dissolved

Hayward Lumber Co., Claremont, Ca., is being liquidated to repay debtors. The remaining assets include accounts receivable and shuttered stores in Blythe, Ca., and Parker, Az.

Hayward president Kingston McKee purchased the Hayward Lumber stores in Lucerne Valley and Barstow for his Imperial Valley Lumber Co., Claremont, which is now operating under protection of Chapter l1 of the Bankruptcy Code. Other Imperial Valley units are in Imperial, Brawley and Calexico, Ca.

HomeClub Opening In ldaho

HomeClub, based in Fullerton, Ca., has arrived in Idaho, opening a retail warehouse in Boise.

CELEBRATII{G the first anniversary of Marquart-Wolfe Lumber Co.'s plywood division, Grand Terrace, Ca.; (front, l-ilCharlotte Carr, Sandi Johnson; (back) Tom Stanford, Neal De Witt, Lance Duke. Marquart-Wolfe was founded in 1953; its plywood unit opened in Seot. 1 987 in Corona, and has since moved to Grand Terrace at the former Trojan Trucking location at Inland Timber Co. The lumber division is in Costa Mesa, Ca.

A 103,909 sq. ft. warehouse with 10,000 sq. ft. nursery is planned for a site at Interstate 84 and Franklin Road, across from the Boise Towne Square mall.

The store will employ more than 100 people and will join the 41 other HomeClub units in the West when it opens next spring.

NHLA Meeting Sees TV Ad

The 1500 delegates attending the 91st annual National Hardwood Lumber Association convention in New Orleans, La., had an opportunity to preview the 30 second hardwood advertisement currently being shown on CNN tv network.

Inaugurated by the Hardwood Institute wood promotion committee under the direction of Emmet P. Vaughn Jr., Emmet Vaughn Lumber Co., Knoxville. Tn.. the ad will be shown 168 times in the next 10

months. Budgeted at $277,000, the promotional film will be seen five to six times by some 150 million people during that period.

"The intent is that this will be an ongoing program to build in the eyes of the North American consumers the desirability of genuine hardwoods in homes and businesses," Vaughn said in introducing the program.

John Thomson, Peter Thomson & Sons, Alliston, Ontario, was elected president; Henry G. Fulcher

MARY'S RIVER TUMBER CO.

Manufacturers of High Quality WNNRENCBDAR

CallDave

Oregon-(5031 7 52-0122 c 15031 752-0218

Corvallis, OR and Montesano, WA

Jr.. Sitco Lumber Co.. Wilmer. Tx.. first vice president, and Jim C. Hamer, Jim C. Hamer Co., Kenova, W.V., second vice president.

The meeting, Oct, l7-19, marked the retirement of W. Carroll "Bill" White as executive manager. The growth of the association during his l0 year tenure was reviewed in a special salute to him.

Ernest J. Stebbins, assistant manager for the last five years, has taken over as executive manager with Bob Garst as assistant manager.

Meetings of the Hardwood Export Trade Council, Hardwood Distributors Association, Canadian Lumberman's Association-Hardwood Bureau, American Walnut ManufacturersAssociation and International Hardwood Products Association were held in conjunction with the annual meeting.

Tree Spiking Fines Set

New federal penalties of a $30,000 fine and/or a five year prison term are in place for anyone convicted of tree spiking.

Aimed to combat tree spiking and trail spiking, tactics used by some radical environmentalists to keep loggers from cutting down trees, the anti-tree-spiking bill was part of a bipartisan anti-drug bill.

Sen. Jim McClure (R-Id.), who introduced the bill, said, "The people who commit this kind of senseless violence are nothing more than eco-terrorists. These federal penalties will put these radical environmentalists on notice that they will pay for their reckless actions."

Duncan, Gary Moe, or Steve Campbell for the distributor in your area. Outside Oregon-TOLL FREE I-800-523-2052 In

L-P Halts Doman Buyout

Louisiana-Pacific Corp., Portland, Or., has abandoned its proposed $200 million buyout of Doman Industries Ltd., Duncan, 8.C., Canada.

L-P had been purchasing large shares in the company and, after attaining more than l0o/o of Doman's stock, signed a preliminary agreement to buy the firm, subject to approval by both companies' boards and governmental agencies. L-P currently has no plans to dispose of its present investment in Doman.

With 1987 sales of about $300 million and net income of about $20 million, Doman has five sawmills with an annual capacity of more than 550 million board feet. It also owns 200/o of Western Forest Products Ltd., which operates two British Columbia pulp mills.

Mead Clark Sale Ahead

Mead Clark Lumber Co., Santa Rosa, Ca., is expected to be sold to Dave Kirk, formerly with Yaeger & Kirk, and contractor Lee Morton, according to The Press Democrat, of Santa Rosa.

The 76-year-old company employs about 100 people at its 7.5 acre site and has been owned by the Destruel family for 40 years. Owner Dusty Destruel refused to comment on the proposed deal.

Five years ago, when Kirk sold his interest in Yaeger & Kirk, he allegedly signed an agreement to stay out of the lumber business for five years, according to The Press Democrat.

No purchase price was disclosed, and Morton said no details have been set.

Blase' Seattle Shoppers

Despite fierce competition between Ernst Home & Nursery and Pay 'N Pak for home improvement business in the Seattle, Wa., area d-iy consumers show no preference for either store.

A recent market survey found that more than 580/o of the consumers queried in Seattle had no favorite home center or hardware store. The research done by Impact Resources also discovered that Seattle consumers are above the national

average in doing d-i-y work on their homes.

Free Storage ldeas, Plans

Western Wood Products Association has completed a 20-page storage idea book called the Breathing Room Book, backed up by a series of 13 d-i-y plans showing how to build most of the projects pictured in the book. Two of the 13 plan sheets show how to build simple storage projects not shown in the book.

The projects include a wide variety of storage variations including built-ins, islands, dividers, modular units, platform units and ideas for an entire room dedicated solely to storage. They range from a simple garage storage unit to bookcases.

Single copies of the book and the l3 supporting plan sheets are available free. Up to 25 of each of the plan sheets are also available free. A single copy of the Breathing Room Book is free. Each additional copy 850. They are available from Western Wood Products Association, Dept. STP, Yeon Building, 522 S.W. 5th Ave.. Portland. Or. 97 204-2122.

wewontlequeyou outon3|limll.

We know what you really wanttrcm your softwood lumber and panel products supplier: a consistent supply of products, up-to-the-minute market information, and competitive pricing. At Furman Lumber and Slaughter Brothers, accurate, reliable service has been the number-one priority for over 30 years. We now meet the diverse needs of more than 6000 satistied customers, and we'll supply them with more than one billion board feet of lumber this year.

Our national network of 14 sales offices, 12 distribution centers, 7 coastal distribution centers, 1 remanufacturing tacility, and 7 reload distribution centers guarantees that our entire line of products will always be available, at prices that will keep you competitive.

Right now is the best time ever to make the seasoned traders at Furman Lumber and Slaughter Brothers your working partners in the forest products industry. lf you're looking for a dependable source call us today toll-free at 1-800-547-1942 or (503) 636-0320. And watch yoqr protits grow

l4le make marl<ets in all sottwoodspecies.

Softwood Lumber Panel Products Wood Specialties lnc.

Far West Goes Universal

Next year will be a new name, but that will be the only change, as Far West Fir Sales adopts the Universal Forest Products name and logo. Far West was acquired by Universal in December, 1986. With headquarters in Grand Rapids, Mi., Universal operates 23 facilities in l9 cities coast to coast. It had combined 1987 sales of $356 million, making them the 4th largest building material wholesaler in the United States. Far West has operations in Huntington Beach, Ca.; Phoenix, Az.; and a new distribution yard in Stockton, Ca.

Gary Adamson is president of Universal's Far West Co., one of five semi-autonomous Universal Companies. General managers of operations are Bob Abbott for the So. California Wholesale Region; Dave Sinjem for the No. California Wholesale Region; and Bobby Hill for the Industrial Region which also operates a mobilehome truss plant in Moreno Valley, Ca. Steve Garrison is general manager of the Arizona Region which is now part of Universal's Southwest Company.

"The new name will be more representative of the wide range of

species we handle and the variety of activities in which we now operate," according to Jack Secoy and Petter Svenkerud, vice presidents of Universal Far West and former Far West Fir Sales partners.

Meet Berdex lnternational

Berger & Co.'s lumber division, based in Sacramento, Ca., has a new name: Berdex International, Inc. It is co-owned by D. L. Berger & Associates and Con Agra, Inc.

The personnel, address, telephone and FAX numbers of Berdex International's lumber division are unchanged. The company continues dealing in millwork, cut stock, western white woods for commercial and industrial uses as well as plywood and particleboard. The firm will also be involved in international trading of other commodities in the U.S. and overseas.

D. L. Berger, previously chairman and founder of Berger& Co. and executive vice chairman of Con Agra International heads the new venture. Robert Glatt is the general manager of Berdex International's lumber division.

New Housing Units Down 147o

Construction of new housing units tumbled l4o/o in the third quarter from the same period last year, according to McGraw-Hill Information Services Co.

New housing starts from July through September totaled 371,042 units, down from 429,376 during the same months of 1987. According to George A. Christie, chief economist, "The decline of housing starts since last year's third quarter was heavily concentrated in multifamily units as the adjustment to past overbuilding continues to dominate the housing market. Since the 1985 peak of the apartment building boom new construction has been scaled back by nearly half, but vacancy rates have only recently begun to recede from their 20 year high."

Christie pointed out that "stability of mortgage rates in the range of l0 to 10-l/20lo has supported a fairly steady volume of one-family homebuilding so far in 1988."

Only three of the top 25 housing areas - Washington, D.C., Philadelphia and Seattle - posted gains dur-

(Please turn to page 78)

It's Parr Lumber Company's I Christmas

Ken Baggett

Lynn Bethurum

Mary Lou Briseno

John Brown

Tony Fredrickson

Christina Gerberick

Scotty Halliday

Rick Houk

Jim Hynick

Denielle Janikowski

Curt Karstrom

Jim Lawson

Harold Lyle

Mike Maddock

Juan Magallanes

Bobby Malone

Mike Markussen

Juan Moreno

Janet Parrella

Mike Parrella

Peter Parrella

Bill Pritchard

Bob Pritchard

Christina Ragusa

Francis Rich

David Sclimenti

Al Spindler

Melinda Taylor

Gilbert Torrez

Nathan Truehitt

Dennis Van Laningham

Frank Via

Robert Via

Pam Winters

Wally Wolf

Ben Cassinerio, Diablo Timber Co., Napa, Ca., is back from a two week respite on the lsland of Maui, Hi.

Harry Davidson is the new mgr. of Sequoia Supply, Orange, Ca., according to Hal Huff.

Jane Brown has joined the industrial trading staff of Cascade Empire Corp., Portland, Or.

Ed Baily, Art Manning and Mike Sullivan are new to sales at American Pacific Wood Products. Portland. Or.

Carl Moran is now sales & traffic coordinator for Michigan-California Lumber Co.. Camino. Ca.

Richard H. Martin is the new No. Ca., Wa. and Or. regional sales mgr. at James Hardie Building Products, Mission Viejo, Ca.

Dave Miller has been named mgr. of the new softwood div. at Johnson International, Portland, Or. The division is an office wholesaler specializing in softwood lumber and exports.

Bob Mandel, owner, ABZ Lumber, Denver, Co., has been named W.O.O.D., Inc.'s 1988 Lumberman of the Year. His firm recently closed.

Peter Hanley has joined the sales team at MSG Forest Products. Portland. Or.

Don Dye is the new sales mgr. at Loth Lumber, Gold Bar, Wa. Ron Warren is now in sales.

Duncan Hossack has been appointed v.p. for division operations of The O'Malley Companies, Phoenix, Az. Richard Bilby succeeds him as pres. and gen. mgr. of Mallco Lumber & Building Materials, Phoenix. John King Jr. is mgr. of Mallco's O'Malley Reman Mill.

Bill Gregory, owner, Gregory Forest Products, Glendale, Or., has been honored by the U.S. Department of Health and Human Services for his contributions to education.

John Hanna, Gang Nail Components Inc., Fontana, Ca., has been elected to the board of directors of the Wood Truss Council of, America.

Suzanne Cross, outside sales rep, Georgia-Pacific, Fresno, Ca., has been named a regional Employee of the Quarter. Others honored include Alexandra Alva, metal products specialist, San Diego, Ca., and Greg Topjon, asst. metal products mgr., Anaheim, Ca.

The Merchant ltlagazine

G. R. "Jed" Grimm has retired as asst. chief lumber inspector for the Western Wood Products Association, Portland, Or., after 37 years in quality control. Ronald E. Peterson succeeds him.

Jack Price, Universal Forest Products (formerly Far West Fir Sales), Huntington Beach, Ca., vacationed recently in Hawaii.

Randy Both, branch mgr., Georgia-Pacific, Fairbanks. Ak.. has been transferred to Sacramento. Ca., as asst. branch mgr.

Bruce Beckett has been named Wa. regional mgr. of the Northwest Forestry Association. Tacoma. Wa.

Dave Garvin and Gary Guiness are new to sales at Wolfe Lumber Co., Newport Beach, Ca. Juli Waller is a new sales secretary.

Don Getts has been awarded Salesman of the Quarter honors for the third quarter at Sequoia Supply, Fairfield, Ca., according to Bob Riggs, gen. mgr.

Michael Sullivan is the new Lumbermen's Underwriting Alliance rep in Colorado and South Wyoming.

Rich Gauthier is now gen. mgr. of American Lumber Co., Arvada, Co.

J. R. Pisula has been named western regional sales mgr. for the treated wood div. of Koppers Co., San Jose, Ca., overseeing 9 western states.

theway'r

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 &f€ coostantly adding to our selection of western red cedar, pine, hemlock and white 6r. Other species and specialty items are inventoried and included in our weekl y flyer sent to all Fremont customers.

December 1988

Rick Palmiter is new to the sales team at ldaho Veneer Co., Post Falls, ld.

Warren Sturges, Noah Wood Products Sales, Eugene, Or., is also pres. of Seahawk Forest Products, Eugene. Rod Noah is Seahawk v.p.; Michelle Menkens, sales mgr., and Steve Allen, salesman.

Tim Miller has joined Marquart-Wolfe Lumber Co., Costa Mesa, Ca., according to Jon Wolfe.

Ronald P. Maccarone is now senior v.p. and c.f.o. at Builders Emporium, Irvine, Ca.

Dennis Dickenson has been named marketing mgr. of Arizona Pacific Wood Preserving Corp., Eloy, Az., covering So. Ca., Az., Ut., Nv. and N.M., out of both the Eloy office and the Bakersfield, Ca., office of parent co. Pacific Wood Preserving of Bakersfield Corp.

Gary Smith has resigned as exec. v.p. of the Lumber Merchants Association of Northern California. San Jose. Ca., to become exec. director of the Northwestern Lumbermens Association, Minneapolis, Mn. He replaces Nick Kent, the new exec. v.p. of the North American Wholesale Lumber Association.

Steve Olson, Build-Rite Lumber & Supply, Rawlins, Wy., has been elected regional v.p. of the National Lumber & Building Material Dealers Association.

Treavor Calhoun and Bruce Gravier, both of Harwood Products, Branscomb, Ca., recently went steelhead fishing on Or.'s Rogue River with Watly Hicks, Gold Creek Lumber Co., Medford, Or., and Daryl Clapp, Neely-Nelson Lumber Co., Medford.

Larry Markham has been named store mgr. of Diamond International, Fairfield, Ca. He was also recently elected pres. of the Oakland Hoo-Hoo Club.

Dan Bonnington, Bonnington Lumber Co., Orinda, Ca., is organizing a March train trip to Reno, Nv,, for Hoo-Hoo International club members.

Bruce Main, Big Valley Lumber Co., Bieber. Ca.. has been named Lumberman of the Year by the Shasta Cascade Hoo-Hoo Club.

Joe Wheeler, gen. mgr., Coastal Div., Louisiana-Pacific, Samoa, Ca., will be the guest speaker at the Black Bart Hoo-Hoo Club's annual Industry Night, Jan. 18.

Mark Majors, Sierra Pacific Industries, Redding, Ca., and his wife, Donna, are celebrating the birth of a son, Brian M4iors, Nov. 13, 1988.

Ron White. United States Tile Co., Corona, Ca.. has been appointed sales rep for Orange County, Ca.

Bob Headrick, pres. and gen. mgr., Plywood Components, Inc., Millersburg, Or., has left the co. he founded.

Larry Wagner is the new sales mgr. fbr all three locations of Loth Lumber Co., Gold Bar, Wa., replacing Mike Carlson. Duaine McAllister is operations mgr. for all three locations, according to Jeff Loth.

Sy Rodakowski, Oregon Canadian Forest Products, North Plains, Or., and his wife, Madlyn, spent three weeks traveling in Europe with son Scott, a U.S. Army lieutenant colonel stationed in Germany.

Rick Barnes, Knoll Lumber, Kenmore, Wa., has been appointed head of the Rotary Club's annual strawberry sale.

Robert Baum has been Promoted to mgr. of Homeowners Lumber Co., Petaluma, Ca., according to owner Chuck Porro.

Bruce Myers has joined White Brothers, Sacramento, Ca., as asst. mgr. Raymond Riley has been promoted to salesman, according to Craig Kincaid, who caddied for Jim Fitzpatrick, official artist of the PGA tour, at the Skins Pro-Am game at PGA West, Palm Springs, Ca.

K. C. Adamson is now No. Ca. field rep and Chris Chilcott is So. Ca. field rep for Tarkett, hardwood div., according to Thomas H. Reese Jr., v.p., sales & marketing.

(Please turn to paCe 44 )

Pine 6r fir selects

Pine commons

Foscio

Decking 6r Pottern stock

Glue-lom beoms

TJI 6r Micro-lom

Dricon fire reEordont

treoted ulood

Pine mouldings 6r jombs

Pine doors

Personals

(Continued from page 43)

David Bodtker is new to Western International, Portland, Or.

Gregg Moon has joined the wholesale div. sales team at Custom Panels, Tacoma, Wa.

Jim Virgil is now with Western Timber Products, Coeur d'Alene, Id.

Lyle Schafer, Ace Hardware, Napa, Ca., has been awarded an Industry Recognition Award for his term as pres. of California Pacific Southwest Hardware Association.

C. W. "Bill" Knodell, exec. v.p. and c.f.o., Willamette Industries, has been appointed to the board ofdirectors, replacing Gene D. Knudson, who has reached the mandatory retirement age.

Dave Duncan and Gary Moe, Mary's River Lumber Co., Corvallis, Or., will be attending the Northeastern Retail Lumbermens Association convention in Boston, Ma., next month.

Judd L. Webber has been named director of international marketing for the Western Wood Products Association. Portland, Or.

Philip T. Newton, v.p., sec. and treas., The O'Brien Corp., San Francisco, Ca., has retired after 31 years with the firm. Barry Johnson is now national sales mgr., trade sales div.

Barry Heppner, Heppner Hardwoods, Inc., Azusa, Ca., has been appointed to the Hardwood Research Council's executive committee.

Jim Byles is the new mgr. of Square Deal Building Supply, Brookings, Or., replacing John Zia.

Dave Jones, Foster Lumber Yard, Vallejo, Ca., and Neil Keefer, Hayward Lumber, Pacific Grove, Ca., sparkplugged the reactivation meeting of the Coast Counties Hoo-Hoo Club on Friday, Jan. 13, in Monterey, Ca.

Caesar Pratt is now handling sex discrimination lawsuits at MungusFungus Forest Products, Climax, Nv., according to Hugh Mungus and Freddy Fungus.

Unity Opens Reman Plant

Unity Forest Products, Yuba City, Ca., is now fully operational with the recent opening of its own remanufacturing and distribution facility.

The company was formed in Sacramento, Ca., in January 1988, and celebrated the Oct. 2l grand opening of the Yuba City plant with a ribbon-cutting ceremony and barbecue. Attending were 150 guests, including North Coast sawmill representatives, customers and local and state officials instrumental in the company's formation.

Yuba City mayor Lawrence Mark presented Unity

president Enita Nordek with the key to the city, and Ken Gibson, head of the State Department of Commerce, delivered to Nordek a check for $105,000, representing a low-interest loan.

The pattern stock manufacturer and distributor can now offer custom remanufacturing. A new fence cut line is planned.

Principals of the company include Nordek, production manager Mike Smith and salesmen Til Johnson, Ed Cagle and Steve Hagen.

TARGEIIIIG the growing construction markets of Southern California, Southern Nevada and Arizona, Beadex Manufacturing Co. has opened a manufacturing and distributing facility in Riverside, Ca., to produce loint compounds, wall and ceiling textures. The 40,400 sq. ft. plant and warehouse managed by Wayne Wood join Beadex operations in Renton, Wa.; Portland, 0r., and Stockton, Ca.

MTRRY CHRI$IMAS

RlBB0t-CUTIlllG at Unity Forest Products, Yuba City, Ca., teatured principals: (l-r) Ed Cagle, production manager Mike Smith, president Enita Nordek, Steve Hagen and Til Johnson.

In response to several writers contributing regularly to The Merchant, let's put the cards on the table and go for a showdown.

Over and over these experts write about the "bigs" (how to compete with them) in hopes that they will run away and hide, suffering an ignominious defeat at the hands of the "little guys." Having experienced employment with one of the original mass merchandisers and with one of

the retailers who threw in the towel a few years ago, I challenge these experts to finance a lumber yard in today's market in the face of an onslaught from the mass merchandiser.

lf you ask the average buyer at a retail building materials establishment why he is shopping there, few will say that the prime reasons are fast service, knowledgeable and courteous sales people or credit terms. The more frequent replies: "They're close to where I live;" "They have an adequate inventory of whatever might be needed;" "They're open from dawn to dark;" "They stay open on weekends when I do my shopping;" "They take Visa, Mastercharge, Discover Card" or "The prices are competitive and I don't mind waiting in line."

I'm the last one you'll see at a warehouse, because my time is too valuable, in my calculations, to start at dawn, walk miles to find what I want, load it myself, stand in line for an interminable length of time at a register, wheel it to my car, load it myself, tie it down and try to get it unloaded at home before the sun SEtS.

Thirty-five years ago, at the onset of the do-it-yourself lumber yards, we who initiated the process were convinced that nothing could come along to improve on the concept, but change is constant and we were wrong, dead wrong.

We prided ourselves on product knowledge and service "plus," but we gradually saw inventories turning less frequently, the markups decreasing, the profits declining, the merchandise gathering dust, the parking lot becoming too large, the favorite clientele disappearing, the friends becoming acquaintances, the open hours stretching to infinity to stay abreast, the bristles wearing out more rapidly on the broom.

Our original customer was a different breed of cat. Price is everything today. It's frightening to the pros in our business to see the types of materials being unconscionably used in today's remodeling and renovating. Recent figures on resale prices of single-family dwellings would indicate the high priced product being used for every fix-up or refurbish, but the overwhelming physical evidence points to the contrary.

Ken Thim

The truth doesn't come easy. I would love to see the numbers on the lumber yards that have expired in the past decade and the blunt and honest reasons for their demise.

The tale is not new to those who know me. It's never been a case of cry wolf, but rather sounding an alarm of impending concern.

The face of the retail customer is ever changing. The profile of the merchandiser must accommodate that transition. The "bigs" are here to stay in almost every aspect of retailing. Why should the lumber yard owner expect things to be different just because he had things his way for so long.

Aiayem Files Bankruptcy

Ajayem Lumber Corp., Walden, N.Y., has filed for Chapter l l bankruptcy protection from creditors to recover from major losses at its now shuttered Tampa, Fl., and Charlotte, N.C., facilities. Unofficial loss figures range up to $6 million.

After substantial losses, the Tampa and Charlotte locations were liquidated. The Walden and Columbus, Oh., units continue to operate profitably and are in time expected to overcome the company's overall debt, according to an Ajayem spokesman.

Borate Based Preservative

A borate based wood preservative of the type used in Australia, New Zealand and Europe for over 30 years will soon be available for sawn lumber products in the U.S.

Already accepted by the EPA and the American Wood Preservers As-

sociation, Tim-Bor, a product developed by U.S. Borax has proven its protection against insects and fungi successful in tests at Mississippi State University. The U.S. Forest Service Forest Science Laboratory in Gulfport, Ms., also showed the capabilities of the chemicals in demonstrations throughout the south.

Applied by either pressure treating or dip diffusion, the process is said to be non-corrosive to most metals, doesn't affect painting or gluing and doesn't change the ap-

pearance of the wood. Harmless to animals and humans, it has no odor, according to the USFS.

A negative is the tendency for borates to leach from the wood. For exterior use it must be protected with a waterproof coating. Researchers, however, are working to solve the leaching problem.

Full availability of borate preservatives is possible within the next two years. At present, the supply is limited.

WE SPECIALIZE IN PRE-STAINING "YOUR MATERIAL" IN ALL OLYMPIC COLORS. COATING ALL 4 SIDES OF EXTERIOR SIDING AND DIMENSIONALTRIM. PLUS 1 COAT APPLICATION ON ALL SIZES OF PLYWOOD, ENCLOSED WAREHOUSE FACILITY,

Rood, North Highlonds (Soclo), Colif. 95850

Rosewood: a rare gift from the Tropics

ENTURIES-OLD rosewood may be one of the rarest and finest of all hardwoods. Still, countless prized trees have disappeared and been burned along with lesser woods by developers clear-cutting into dense jungles in countries such as Brazil.

Unfortunately, beautiful rosewood grows only in small groups of two or three, averaging one tree per 40 acres. Therefore, developers of million dollar projects care little about searching for and salvaging one tree worth a few thousand dollars.

Vintage rosewood, which must age at least 250 years to attain its deep purple-red color, has all but disappeared. Every so often, a tree will be found and quickly sold for up to $40 per board foot. Lighter brown, younger rosewood (75 to 150 years old) is more common.

But scarcity is not the only obstacle to aged rosewood. Other prob-

lems associated with the usuallydeveloping countries of origin include dealing with a foreign people, political problems, clearing customs, and getting a tree, once located, felled, moved out of the jungle and shipped home.

Brazilian rosewood (Dalbergia nigra), or jacaranda, is perhaps the most cherished form, prized for centuries around the world. It features

Story at a Glance

Beautiful rosewood must age 250 years to reach its deep purple color. .rztre trees are some times clear cut in developing countries most uses are decorative.

various shades of dark brown, ranging from chocolate to violet, with dark brown streaks or black pigment lines. Its heartwood emits a rosy fragrance.

Other types of genuine rosewood are also sought after. East Indian rosewood ( Dalbergia latifolid, or Bombay blackwood, is a very durable hardwood, colored dark purple to ebony with streaks of red or yellow. Variations include Wild Indian rosewood, which is similar to East Indian rosewood but with a wavy, irregular grain instead of a straight grain; Indonesian rosewood, which is slightly pale, and Plantation East Indian rosewood, which is pale and has a wide grain.

Kingwood (Dalbergia cearensis), or violetwood, is a luminescent violet with black streaks and a mottled grain. Found in Brazil, kingwood is very tough and ranks high in all strength categories.

Tulipwood ( Dalbergia frutescens),

or pinkwood, is a true rosewood but with a completely different appearance. It is a pink-yellow with a pronounced striped figure in varying shades of salmon pink and rose red to violet. It also grows in Brazil and other parts of tropical South America.

Cocobolo ( Dalbergia retusa), or granadillo, is Central America and Mexico's version. It has a wild grain and a heartwood that appears between brilliant orange and streaked dark brown. It is extra strong, durable and resistant.

Honduras rosewood (Dalbergia stevensoniil, or nogaed, grows exclusively in Belize. The hardwood is dark brown with tan to pink streaks and crimson to black grain lines. It is equally durable, dense and tough.

But since rosewood is so rare, it is not often used to take advantage of its exceptional strength. Instead, it is mostly devoted to decorative purposes such as mouldings, picture frames, musical instruments, cabinetry, furniture, paneling, veneer and turnery.

One offshoot of the scarcity of the wood is the demand for substitutes, among them morado (Bolivian rosewood), bubinga (African rosewood), bocote (Mexican rosewood), Arizona's desert ironwood, and pau ferro. None of these are true rosewoods.

OHNSTO HARDWOO Merrv CtrriStrnas

AND HAPPY NEW YUNN

SPECIALIZING IN UPPER GRADE HARDWOODS Foreign & Domestic

Johnston Hardwood Inc., 20940 S. Alameda, Long Beach, Ca' 9081o

(8oo)247-e486 . (21s)oss-stl

TIMBER

TIMBERS

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

Bracrrt International

Drawer 4'779, Arcrtr, Ca.95521 707-822-3648

FIAPPY HOLIDAYS

goldang sullivan lumber sales p.o. box 916 (14824 goldenwesl sl.) westminster, ca. 92684-091 6 fax 71 4-898-381 6

bill sullivan robert golding dale dickinson bill young ln Gold We Trusl

and selected sales aids

Plant Legs

A planter stand designed to repel snails and prevent rot is new from Bendig & Associates.

side wall and roof sections to be preassembled flat on the ground and then connected to each other more easily. The walls are then positioned on special clips attached to the floor frame to eliminate additional leveling during assembly.

Glean Sweep

Chimney soot destroyer from Coughlan Products is now available in convenient, air-tight tub packaging.

Chimney Sweep Soot Destroyer is sprinkled directly on the fire in woodburning stoves and ltreplaces to vaporize soot in the stoves and chimneys. This is said to increase stove efficiency and reduce fltre hazards.

The product is offered in liquid form for oil and vented kerosene heaters, in "E-Z Pour" pint and quart containers.

The powder form comes in 16 and 38 oz. tubs.

Wine Cabinet

A wall cabinet with a wine rack attached below is offered in a variety of door styles from StarMark.

The Miracle Stand measures 5-l/2" on a side. stands almost 3" high, and reportedly can support over 200 lbs.

It helps to prevent wooden deck rot, outdoor carpet rot and patio stain. It also helps keep wooden containers from rotting and makes cleaning under the pots easier.

In addition, the stand is manufactured with a special snail repellent coating. It is said to be harmless to humans and pets.

The Economy Barn is made of 7 /16-in. waferboard. The Deluxe Barn uses Cladwood, a composition material that reportedly is more consistent than regular wood, has a highly controlled moisture content and uses binders to seal out additional moisture.

Both models are offered in 8 ft. x 8 ft. dimensions, and 4-ft. extension modules are also available.

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

Storage Birns

Backyard storage barns constructed of wood are new from Arrow.

The sheds incorporate stud construction throughout, permitting

The cabinetry is available in many stain colors and finished with the firm's exclusive Star-Sheen process for added smoothness, durability and beauty.

Ghristmas Tree Security

A Christmas tree ornament containing a sensitive fire alarm is new from RAM Corp.

The ball unscrews to be equipped with a 9 volt battery for power. The alarm sounds when the temperature reaches 120" or greater and stops when the temperature cools down.

The alarm can be tested using a hairdryer blowing hot air into the hole at the bottom of the ball. In less than l0 seconds, the 90 decibel buzzer should sound.

Silver, green and gold ornaments are available, packaged in a colorful gift box.

Panel Pusher

A special merchandising display is now available for Plywood Panels' new line of beaded hardwood paneling and matching moulding.

The merchandiser holds 20 32" sheets of paneling in four different patterns, along with 19 8' strips of chair rail moulding.

Also featuring a colorful header and literature rack, the display covers less than 16 sq. ft. of floor space.

The Wainscot Panels line includes six pastel and beaded oak woodgrain patterns, and mouldings in five coordinating colors.

Bow & Bay Replacements

Vinyl bow and bay replacement window systems providing full views of the outdoors are now available from Season-all Industries.

Single-hung, double-hung, picture or casement window combinations come in both white and beige. Styles include equal lites from three to six panels for the bow unit, while the bay unit uses a l/4-l/2-l/4 con-

exposure to water and moisture. Available in hve-gallon and 55-

Setting Up Sawhorses

A bracket for easily constructing workshop sawhorses using main beams and legs of any length is new from Bush Lake Industries.

Tightening a wing nut clamps the entire sawhorse together. Loosening the nut disassembles the sawhorse.

Get Unhinged

The Pin Popper, a new tool for removing door hinge pins without damaging door jambs, is now available from WG Marketing.

gallon drums, it is ideal over metal roofs and surfaces, especially when installing Styrofoam as insulators and backer boards.

Tips At The Bar

figuration.

The pre-assembled wood buck is constructed of select birch veneer, and each wood mullion assembly is reinforced from head to seat with counter-sunk 1 /4" steel-threaded rods.

Vinyl snap trim and mullion covers are also offered.

Back Goat

A new asbestos-free, asphalt emulsion foundation coating has been developed by Monsey Products Co. for waterproohng and damp proofing masonry above and below grade.

Reportedly containing no fillers or hbers, the coating is applied without heat in a thick film in a single application to control prolonged

A polishing bar for soldering titps is new from Weller.

Designed to clean oxidation from either hot or cold soldering tips, the polishing bar will buff the tip and reportedly restore life to it.

Made of high grade zinc-plated steel, the 6" tool eliminates the need to remove pins with a hammer and chisel.

Light Security

A wireless motion sensor light that can be mounted on any surface, including lamp posts, walls and fences, is new from Heath Zenith.

The system consists of a batteryoperated sensor and a receiver which replaces any existing wall switch to control the light. It may be placed up to 150 feet away from the control.

Features include pulse count technology to prevent false alarms, variable shut-off to set the duration that lights remain on, and an adjustable photo cell for changing the times lights turn on at night.

Brassy Glass

Stained or leaded glass windows and inserts are now available with cames of brass, as an alternative to traditional lead, from Simpson Door Co.

um discharge lamps and photoelectric control.

being used. The handle's screw-type cap allows easy refilling of any liquid detergent.

The extra large sponge head is made of a synthetic material which reportedly does not shred.

Japanese Bath House

Kohler's Mandalay Teakwood Suite brings the exotic look of the Orient to the bath.

Featuring plumbing fixtures handcrafted in smooth, richly grained teakwood, the ensemble includes 5' and 6' whirlpool baths, with optional aprons and wainscoting, pedestal and countertop lavatories, toilet seat and cover.

All doors, sidelights and transoms with brass cames are triple-glazed. The decorative glass is sealed between two pieces of clear, smooth glass, to protect and prolong the life of the fine glass and brass came.

Victorian Lamp Posts

The elegant outdoor lighting of 19th century England is now available in the U.S. from David Webster Lrd.

The lanterns, brackets and lamp posts combine historic designs with modern technology, including energy-efficient, high-pressure sodi-

The highbeam refractor system is also said. to give a high level of light distribution.

Security features include polycarbonate glazing panels, lockable control gear compartments and security system link-ups.

Detergent - Dispersing Sponge

A sponge which automatically dispenses liquid detergent at a controlled rate is new from Spongee Corp.

Individual strips of teak heartwood are bonded together, sanded to a silk-smooth finish, reinforced with fiberglass for additional structural strength, and then coated with a polymeric hnish for glossy, long lasting protection. The result is a sunburst pattern unique to each bath.

The long, sure grip handle holds a large reservoir of detergent, dispensing it at an even pace as the sponge is

Whirlpools feature four or five independently adjustable jets for air and water, two-speed self-draining whirlpool pump, flush-mounted onoff switch, and automatic safety shutoff.

Drilled To Perfection

A new 3/8" variable-speed reversing drill from Black & Decker features a built-in two-way level for more accurate drilling in horizontal and vertical positions.

The 4-amp Holgun drill features all ball bearing construction, a quality precision chuck for maximum bit-gripping capacity, and an 8 ft. rubber cord set that stays flexible even in the coldest weather.

A handy built-in belt clip is also included to free the users' hands.

Instant Vanity

Fold-down bathroom cabinetry that allows anyone to build a vanity in seconds using no tools is now available from Vanafold.

Vanities unfold, using a patented locking hinge system that is assembled at the factory.

The steel reinforced cabinets are manufactured in a variety of sizes and styles.

Units are shipped flat, so dealers reportedly can keep every model in stock in less than 15% ofthe space of ordinary cabinets.

Plumbing Protection

Liquid drain opener is now being packaged in a special 3 mil thick polyethylene overwrap bag for consumer and employee safety by Scotch Corp.

Other safety features include a heavy wall bottle, a child resistant cap and a heat-sealed membrane closure.

Drive At An Angle

A right angle drive attachment that permits battery-powered screwdrivers to work in tight spots is new from AEG Power Tool Corp.

The Off-Set power screwdriver head extends the power of cordless tools allowing workers to fasten or remove screws located in channels, under edges or in areas where regular screwdrivers cannot fit.

bright light. The unit has an effective detection distance of l5 ft.

Circular Scarecrow

A hanging ball featuring huge predator eyes on the front and back to ward offbirds is new from Bird-X.

Compatible with all cordfree tools with chucks or standard l/4" ANSI hex drives, the attachment has a l/4" ANSI hex magnetic output socket to securely hold all slotted, Phillips, Torx or other l/4" slotted bits. An adjustable thumb flange can be rotated 360" to provide maximum force.

Manufactured with high strength alloys, it has hardened, precision steel gears that are lubricated and sealed for durability.

Alarming Development

An economical, portable new alarm system from Akron gives instantaneous warning of an intruder's entry.

When aimed in the direction of a door or other entry way, the PortaGuard's dual element pyroelectric sensor will detect the heat and motion of an intruder and immediately activate the user's choice of a loud alarm buzzer, chimes or a

Features include a dual element sensor with daylight filter, an adjustable sensor detection angle, an alarm reset button, a separate light on/off function, a provision for wall mounting, and a protective vinyl carrying case.

Weighing 8 oz., the 5-l/4" x 4-l/8" xl-l/2" device can be used at home, in a hotel room, in a place of business, or virtually anyplace requiring added security.

Constructed of heavy duty vinyl, the ball is two feet in diameter. The three-dimensional, weatherproof, plastic eyes move forward and sideways to frighten birds away from yards and gardens.

Kiddie Clubhouses

A pair of playhouses offering child-safety features and durable construction are now available from Arrow.

lengths, featuring a unique contoured seat for comfort and leg support.

All kits, pre-drilled for easy assembly, are made of kiln-dried, treated pine to prevent warping or cracking.

All hardware and instructions are included.

Air Patrol

A new 2l-piece air tool kit from Campbell Hausfeld provides a complete. convenient way to organize. transport, store and use air-powered tools.

winter anti-freeze is new from Ringer Corp.

Wirdrrffme fu Ianrns

The Kids Klubhouse is made of waferboard. while the Deluxe Klubhouse uses a special Cladwood shutter material, formed into 2" narrow slats. The deluxe model's 5 ft. x 4 ft. dimensions give it the look of a horizontally-sided full-sized house.

Backyard Benches

Sturdy, treated pine bench kits are new from Ajax Yardworks.

The kit includes the two most popular d-i-y air toolsa l/2" impact wrench and a 3/8" air ratchet - plus a carrying case with molded compartments and a full set of accessories: sockets, adapter, extender, connector, oil and safety glasses.

The impact wrench removes and replaces stubborn lug nuts, while the air ratchet tightens and loosens nuts and bolts.

Lawn Anti-Freeze

ts, x,tu&tu atuedd**t@, &*.WM* il*tf,?1#ttr&xs,

Designed to prepare lawns for faster green-up in spring, WinterStore is a late-season application that provides appropriate foods, microorganisms, enzymes to strengthen the root and enhance cold tolerance. The product comes in 20-lb. bags, which treat up to 2500 sq. ft. of grass.

Slasher Film

A micro-thin, transparent film that bonds to windows, glass doors, display cases and partitions to make them stronger and reportedly shatter-resistant is new from Madico, Inc.

Two styles are offered: a 4-ft. landscaping/garden bench, and a contoured bench in 4-ft. and 6-ft.

A fall-winter fertilizer containing nutrients for vigorous fall root growth and potassium which acts like

Protekt Window Film is applied to glass with a special acrylic pressure sensitive adhesive, improving strength and significantly reducing shattering flying shards should breakage occur. The film is said to hold the broken glass in place. It comes in three grades, each thickness offering greater resistance to cutting, tearing and impact.

BLUE IAKE FOREST PRODUCTS

Announcing Sfurdi-Wood

If vouve ever put in a subfloof you know exactlv what we mean about the thrill of plywobd lust how much of this excitement vou can take is certainh up to vou "

But its nice to know thereis a soothing possibly even boring alternative waiting at votrr buildine suppV center "

Whenpioperb-installe4aSturdi-Wood

floorwontwarp orbuckle. And itcertainhwont delamindte, underanyconditions.

Tongueandgroovesmadebmeetewctlq. On tOp Of that, Sturdi-V/ood is 1000/o

after oanel. so vou setallof whatvou pav for without knothoEs and core vciids.' lty Shldi-Wood onyournext job. As with all Weyerhaeuser productswe absoluteh zuarantee vour s atisfaction. -F6r the disnibutor nearestyou, call 800-328- 4646e>rl 520.

Or write Weverhaeus er Sturdi-Wood, PO. Box 822I debt. 520, Bumsville, MN 55337.Find out what life is like without all the excitement.

Sturdi-Wood.Tfw more u 0u use it, the betteritlooks.

On The Mat

A colorful 3' x 5' floor mat that provides instant identification for Sentry affiliated dealers is now available from Sentry Hardware.

a key ring with a power tape. The 3-ft. tape is calibrated eighths of an inch. It features power retraction and an attractive black matte case.

The Merchant Magazine

tells them how to escape to safety.

Up to 100 words and phrases can be selected from those programmed into the computer voice chip, such as "alert. leave immediately. stay close to the floor." Depending on the location of the fire, the device selects the appropriate escape route.

The smoke detector component includes a silencer feature said to reduce false alarms by a sampling process that withholds signalling until danger levels have been certified over a predetermined length of time.

Features include three-color high fidelity graphics, continuous filament nylon to assure long life, allweather construction to permit use inside or out, exclusive "dye-lock" process to prevent pattern wearing, and Scotchgard treatment.

Two mats may be placed side by side as a 6 ft. twin unit for double door openings.

Mini-Measurements

A new measuring tape from Lufkin combines the convenience of

The key ring tape case with metal connector.

Fire Call

is attached to the a strong, flexible

A "talking" smoke detector from WHS Sales not only warns homeowners of imminent danger, but also

The VocAlert first sounds a loud l0-second alarm, then a calm, forceful, synthesized voice supplies preselected audible instructions for primary and alternative evacuation routes.

December 1988

Attic Insulator

Blown-in attic insulation is a quick, easy d-i-y project with the new Force/l insulation blowing machine from Intec.

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

Please mention issue date and page number so we can process your re quest faster! Many thanks!

Rolling Measurements

A new tool for measuring curved, horizontal or vertical surfaces ouickly and easily has been introduced by Keson Industries.

Your Garden's At Stake

Durable garden stakes have been introduced by Sudbury Lawn & Garden Products.

A scaled-down version of the powerful model used by the construction industry, the portable blower is said to be easy to operate and offer zero downtime. An entire attic reportedly can be insulated in less than two hours.

After setting the Roadrunner's counter to zero, the wheel is rolled along any surface to obtain accurate linear measurements. One person can easily make measurements on difficult areas such as walls or ceilings.

A sturdy, three-section telescoping handle reduces the tool's length to 17" for easy storage.

An executive model features a four digit counter with large numbers, permitting measurements up to 999' 1 l" without resettins.

ffiIilfi

PONDEROSA PINE

A soft-textured wood with straight, closeand uniformed grain, Ponderosa Pine is unexcelled for smoothness and fine appearance when surfaced. Suitable for many purposes, it has less tendency to split than denser woods. Excellent workability; extremely paintable; tops in gluing.

Try one of our full range PONDEROSA PINE prod

of

Constructed of steel core pipe, Dura-Stakes have a plastic-coated, sure-grip surface with ridges to make tying easy and prevent vine slippage.

Their dark green color blends with the environment.

The light-weight, weather-resistant stakes come in lengths from 2 ft. to 8 ft. and have water-tight closures at both ends.

UESTEnil regional meeting 0f the North Amer ican Wholesale Lumber Association was held in Long 8each, Ca., Oct. 25. NAWLA pres. Henry Poler forecast '89 as "another grind it out environment." Top California forester 0r. Jerry Partain spoke on political issues affecting wood supply. lll Dennis Richardson, Henry Poler, Doug Willis, Don Derbes. l2l John'Allen, Ed Fountain, Jr. l3l Joe Tidwell,

Phil Butterfield, Bob Wells. lfl Sam Witzel, Dr. Jerry Partain. l5l Todd Pollard, Jim Moss, Frank Penberthy. l0l Daryl Bond, Chip Roepke, Ron Tipton, Phil Dodson. l7l Miguel Hernandez, Jeff Gould, Bruce Kelly. l8l Wayne Gardner, Ted Pollard. l0l Craig Watson, Dave Bufe. ll0l Blaine Smith, Bill Sullivan. llll Pete Skibba, Denis Stack, Jim Frodsham, Bill Gunnell. ll2f Frank Rhoades,

Nelson Sembach. ll3l Lance Matiste, Jetf Miller, Steve Cotaya, Pete Nevins. ll4l Dave Wardall, James Smith. llSl Will Riegel, Ted Gilbert. ll6l Tim Gaffney, Gordon Beach, Bill Young. llTl Richard Miller, Robert Golding. llSl John Weston, Lany Crabtree. ll9l Jon Wolfe, Andy Ersek.

yLEP-n;a NEW AUn- ! TTAPPA

I,t glvss rrs gwnt p[,ensure tD wAb Vou thz, best, Iot thw, Iwlidng selcnsotl wnd, the rww Vwr. l{&rv wt, LwtwLnwted, TLtwber wv belLeve Lw wII the otd-Jwshinnsd, vqfil.es Fwtwstg, JL* servine, r espotusLvetwss, corrsi,il,srwtiow, wtd, J whrtwss .

nl,t's w joV tD worh, wnd. d,Lscovvr that we a[,[, havv w c?ta.twe tD grow. Per\*pt we wppwfiintg, t[w "good, LLJq" rrJore wnd, ttwre, Ds we rewd, thz, twwspwpers. At wfrv rwtz, Lt, Ls grunt tn ILve Ln Atweri,cw, ewjoy fru*nowj, wd, h,tww thot our fwrruLr,es awe ha.vLrrg the hrggvst, opportlulnLti,os Ln tIw wor[.d,,.

T?w l-a,rwLna,tpd,'TLrwber tpnrw wwttts to slta;re t[wse otd,-fwshinnel. va[,uas wLth Vow wtd, to wksh Vov gooil, hewLth wwd, prosperLty Jot the New l)wr 1 989.

Treated Wood Sampling

(Continued from Page 221

who we are and what we do, we are welcome and, in fact, encouraged to check their stock of pressure treated lumber and take whatever core samples we need. Generally the owner, manager or yard personnel are present at least part of the time to observe the sampling procedures, ask questions, and become better informed and more confident in the product they are handling and selling.

Many times a customer, or whoever happens to be around, can't resist coming over to see what's going on as cores are being

extracted. A spontaneous hands-on "short course" quite often emerges on the spot.

Unfortunately, not all pressure treated lumber meets the standards nor is subject to AWPB quality control. The main "fly in the ointment" in destination sampling is trying to explain why some lumber is not subject to our sampling because it comes from a plant that elects not to participate in the industry's quality control program.

Reliable pressure treaters cannot buy better promotion for their product than to identify it with their industry's quality control program. This helps create confidence in their prqduct at destination points. Their

1930 $.

CanYonid' Diamond Bar, Ca. 9't765 t7t4) 86'l-2071

FRED C. HOLMES

LUMBER CO., a division of Noyo InvestmentCo.

Wholesale lumber products

Redwood, Ffo, Pine & By-Products

Specializing in redurood clear, all-heart, air seasoned timbers

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

P.O. Box 80O. Fort Brugg. C^.95437 (70..71964-6377

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

consistently high quality product will shine in comparison.

The treating industry's need for comprehensive control and a recognized quality mark is ever more imperative as the market for treated lumber continues its explosive growth. In recent contacts, I have found building officials, chief building inspectors, plans examiners or other key personnel in practically every major city building inspection department in my territory hungry to be better informed about pressure treated lumber and its quality markings.

The lack of uniformity in the wide array of tags, stamps, NER numbers, guarantees, and warranties promotes confusion, erodes confidence, and dehes logical explanation to the lumber dealer, building inspector or architect, let alone the consumer.

The AWPB cloverleaf on the stamp or on the end tag is everyone's assurance that the pressure treated material has been produced under their triple-tiered quality control program. This program should be supported by retailers, building inspectors, architects, builders and remodelers. Retailers should insist on the AWPB Quality Mark on each piece of lumber or plywood they buy to provide assurance of quality and performance all the way to the consumer.

LIB0RAT0RY analysis reveals the retention of the oreservative in the wood.

Brea

Matilla

Tallying Device Finds Niche

A lumber bundle and load tallying device introduced to the hardwood lumber industry last July is finding wide acceptance.

Developed and tested by Tom Beard of E.N. Beard Hardwood in conjunction with Createc Forestry Systems, both located in Greensboro, N.C., the End Tally was demonstrated and received with much interest at the recent National Hardwood Lumber Association meeting in New Orleans, La. Al Jenks, president and founder of Createc Inc., parent company, predicts that 75 to 100 units will be in use by the new year.

Createc Forestry Systems is a separate division of Createc Inc. The parent company was formed several years ago to create computer product lines with specialization in the collection of business data electronically and the electronic transfer and evaluation of that data for management. It specializes in bar code systems, hand held and small computer systems.

Patrick Jenks, son of the president, who has a forestry degree, has been instrumental in applying the technology of the company to the forestry and lumber industry. Timber Cruiser and Forest Eagle were initial products developed for use by the timber industry in timber stand analysis. A complete woodyard inventory management system and a chain tally system are among other computer technology products being developed by the company.

uses End Tally in his operation, reports that "my stall has tallied as much as 27.000 board feet of hardwood in less than three hours." Impressed by the performance of the product, he has established a sales relationship with Createc Forestry Systems as its westem representative.

Home Prices Accelerate

Home resale prices in the West are fast outpacing all other regions in the country, their rise further fueled by declining new home construction, according to the National Association of Realtors.

Huge price increases during the third quarter of 1988 were registered in Alaska. Nevada and Arizona and certain counties in California, led by Santa Barbara, Orange County, Ventura, Los Angeles and San Francisco.

In other major western markets, Seattle, Wa., posted big gains for the third quarter, while Phoenix, Az., and Portland. Or.. remained flat.

Economists suggest it would take a recession to reverse rising home prices by decreasing the number of potential buyers.

Jim Summerlin. owner of Sumwood, Inc., Los Angeles, Ca., who

WHOLESALE 6ff LUMBEBCO. .'d^*figot sPECTLLTaINGINA

\)- coMPLETE LINE oF THE FoLLowING:

TREATED

Meets

REDWOOD

CO}ISTRUCTION HEART ROUGH

2

2,8x8

CONSTRUCTION COMMON ROUGH

DF MUDSILL - AWPA C-2

lumber - above ground

iii,iiE,iiiiif

6x1 2,8x8

ACZA CHEMONITE - AWPA - C.14 & c-18

lumber-foundation grade - in ground

2x4 &zxo

plywood loundation grade

1 /2 & 3/4 CDX STR I

#3 DF lagging LP-22

3x1 2 Rough

#1 DF MUDSILL - CZC school jobs

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COPPERNATE "25O''

TREATING SOLUTION

1&5gal.Pails

PINE

DIAMOND, ROSEBURG & SIERRA STOCK

C a BTR Sugar Pine: 1 x6, 1 x8, 1 x1 2

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*3 Shiplap: 1x6,1x8

rr2 Com S4S: Ix4 thru 1xl2,2x12

#3 Com Sugar Pine S4S 1 x4 thru 1 xl 2

*4Com S4S 1x12

CLEAR DOUGLAS

ETTER

CAN'T GET ALONG WITHOUT YOU

After having been retired now for a whole nine months, the one thing I have truly missed is your hne publication. For many, many years I looked forward to receiving the "Merchant" each month and thoroughly reading it from cover to cover.

Would you please enter a subscription for two years in my name and mail to the following address. I am enclosing my check.

Merle Tanner

1444 Renwick Lane

Eureka. Ca. 95501

FOOD'S GOOD, TOO.

The Matterhorn Restaurant has the finest Swiss food in San Francisco. More than that, the paneling and millwork

were prefabricated and prefinished in Switzerland and shipped to San Francisco in two 45' containers.

The owner, Gustav Erpen, brought two factory men from Switzerland to install the wood. Having been to Switzerland and admired their treatment of red fir, which is native to their country, I recognized the wood immediately.

Don Heller Soles Monoger

44.|8 N€ Heller Rd. Roseburg, Oregon 97470

Fnx 503t672-5676 503t672-6528

It's quite a sight. A lumberman would enjoy it.

The Matterhorn has a hard liquor bar, the Erpens are quite genial, and I'll vouch for the good food.

Paul Euphrat

Wendling-Nathan Co.

59 Redwood Dr. Kentfield. Ca.94904

Ouolitu lUestein Cedor

PostsoRoilsoPickets

SINCE 1876YOUR COMPLETE GUIDE... lumbermen$ rcd b00l( $erulce

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

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

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

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

Please enter our subscription for Lumbermens RED BOOK service for one year. Bill us: $310.00 quarterly D; $620.00 semi-annually n; $1 ,240.00 annually !.

Please send more information, without obligation n.

500,000 B.F, llponr

Lodgepole Pine Turns Commercial

While lumber manufactured from America's most abundant western softwood species, Douglas fir, hemlock/white fir, redwood and Ponderosa pine, combine to make up more than two-thirds of the West's huge sawmill output, another species is stepping into the commercial spotlight.

In 1987, the volume of lumber manufactured from lodgepole pine trees growing in the West reached 932 million board feet, enough to build almost 75,000 typical single-family American homes.

That was an all-time record performance, according to statistics compiled by the Western Wood Products Association, which represents lumber manufacturers throughout the area. A billion-foot production volume would put the species into a hypothetical "major" commercial volume category.

(2131541-0779

FAX{ 2.1 3)541'Y2'9}

The species owes some of its new prominence to the record-breaking U.S. lumber demand experienced over the past three years, according to Fred Reseburg, WWPA's director of economic services. This culminated in 1987 when America consumed 50.6 billion board feet of lumber, an all-time high.

Besides the traditionally high volume western lumber species already noted, only a handful of other species have major commercial importance in the United States. These are mostly found in the South.

Lodgepole pine is a slender tree that, in its commercial subspecies, prefers semi-arid high plateaus and rolling mountain areas. lt thrives over a vast section of North America, reaching from the Yukon of interior Alaska to Baja California, and as far east as the Black Hills of South Dakota.

The species is sawn into both boards and structural lumber for residential and light commercial construction. Its natural characteristics make it a typically straight lumber, easy to work and nail.

While many home builders have developed a preference for lodgepole for framing and paneling, the species usually is produced and shipped to market mixed with other woods of similar strength characteristics. These include Engelmann spruce, Ponderosa pine and Alpine fir. It also makes up a significant portion of the lumber Canada exports into the U.S. every year under the spruce-pine-fir species grouping.

Lumbermen Fight For Benefits

Three lumbermen who retired from American Forest Products, Martell. Ca.. have filed a lawsuit alleging their health insurance benefits were illegally cancelled.

The suit, filed on behalf of Frank Quattrocchi, Charles Fletcher, Harry Abraham and their wives, names Travelers Insurance Co., the health plan's underwriter; Kohlberg Kravis Roberts, the leveraged-buyout firm which helped purchase American Forest Products in 1981, and American Forest Products, which has since been resold to Georgia-Pacific Corp. G-P is not named in the lawsuit.

Following the sale of American Forest Products to G-P in April, 172 retired workers reportedly were offered $25,000 each in lieu of the health insurance plan. The three plaintiffs, whose families had previously been hit by serious illnesses, were the only ones to decline the offer, and their benefits were cancelled.

The suit seeks a jury trial to reinstate the plantiffs' health insurance and provide unspecified damages, claiming the defendants violated the terms of the federal Employee Re-

tirement Income Security Act of 1984, intended to protect worker benefits.

Kohlberg Kravis Roberts attorney John Anderson labeled the suit "without merit," saying Kohlberg Kravis was only one of the buyout partners and that American Forest Products attempted unsuccessfully to find a replacement insurer when Travelers cancelled.

Plaintiff Frank Quattrocchi is now with South Bay Forest Products, Orange, Ca.; Charles Fletcher works at Woodtek, La Mirada, Ca., and Harry Abraham is retired.

A. C. Houston Enters Az.

A. C. Houston Lumber Co., Wichita, Ks., is opening a store in Winslow, Az., as part of its newly formed Inter-Mountain District.

Other stores in the district are Angel Fire, Farmington and Gallup, N.M., and Crested Butte, Co.

The company expects to move into the Winslow location by late December, initially using it as a satellite yard for the Gallup store.

Roger Ricks, now at Gallup, will manage the Winslow store.

New Builders Square Execs

Glen R. Mielke will become K mart Corp. vice president and president and chief operating officer of its Builders Square subsidiary Jan. l. Mielke will be responsible for all Builders Square store operations, merchandising, marketing, distribution, transportation, construction and maintenance.

He will report directly to Frank W. Denny who will be elevated to chairman and chief executive oflicer of Builders Square from president and chief executive officer.

John S. Valenti, regional manager of K mart's Southwestern Region, will replace Mielke as vice president of that region.

K mart's chairman of the board, president and chief executive officer Joseph E. Antonini said, "With the growth of our Builders Square subsidiary, we felt it necessary to give added strength to this fast growing division. It will allow management to become more involved in the refinement of operations. Glen Mielke's wide field and executive experience was the ideal choice for this position."

Posts, poles, pilings, timber, crossarms, grapestakes, dimension lumber.

Pacific Wood Preserving of Bakersf ield produces vi rtually 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:

Steve Ryan, General Manager

I n Calrfornia (800) 582-3950

Outside California (805) 833-0429

LASG's annual conference

lA ONTINUING a long string of \, successful Management Conferences, the Lumber Association of Southern California held their 38th

annual last month in Palm SPrings, as is tradition.

Following a welcoming recePtion, Nov. 9, the conference opened the

next day with a display of exhibits in the ballroom of the Marquis Hotel.

Lead-off convention speaker was motivator Rick

Pl,A0UE time: lll Dick Hawthorne recognizes 0rea. emeritus Al Newkirk. l2l Dick Hawthorne, Marty Temple, new LASC presl3l Wavne & Katle Gardner, Paul 0rban. l4l Bill H06lund, John Cavers, Gordon Beach. 15l

John & Nilda Jenkins, Bill Younq. 16l Ted Schafer, Blaine Smith, Ron Williams. l7l Donna & George Swartz. l8l Phil Dodson, Russ Primrose,leon Lauderbach. l9l Linda & John Turner. (l0l Gary Adamson, Dennis

wKirk. Il | | Gale McBride, Bill Sullivan, John Allen, Jack McBride, Al Reed. ll2l Kenny Dickenson, Nelson Sembach.

Barrera, who defined

success as a progressive realization of a worthwhile goal or ideal. He urged the lumbermen and women to "give your people a purpose, a mission, a focus." He noted the importance of a positive environment and the elimination of negatives from the workplace.

At the president's luncheon following, new officers were announced. (For a list of fficers and directors, see below).

The honor of Lumberman of the Year was bestowed on Bill Cowling of Dixieline Lumber Co., San Diego. A popular selection, the award took note of his extensive contributions to both business and community activities. Al Newkirk, now retired from Chandler Lumber, was named president emeritus.

The second segment of Rick Barrera's presentation followed lunch. In it he demonstrated ways to identify personality types, describing the four types as: Relator, Thinker, Socializer and Director. He said good

managers should work to identify these types so that their strengths can be directed in the most positive way. Barrera said studies indicate a genetic predisposition to personality.

The next morning, Friday, a panel discussion spoke on mistakes, luck and success. Leadoff panelist Milt Johnson, Home Lumber Co., suggested evaluating opportunities outside the narrow scope of the lumber business. He told how they purchased land for a lumber yard, but finally decided to sell it when they weighed an immediate payoffagainst

Story at a Glance

Discussions included motivation, people, mistakes and success. Bill Cowling named Lumberman of the Year. . Martyn Temple elected new president.

a 20 year return on investment as a lumber operation.

Bob Slettedahl, Lumbermen's, said it was a mistake to think any employee is indispensible. He counseled against moving forward without adequate planning and to avoid involvement in employee's lives. He said success was a process and that you must use objectives and goals to be a motivator for employees.

John Gaskin described some of the successes of Capital Lumber Co. as the "result of doing things we didn't know we couldn't do. Overlook some of the obstacles and view problems as opportunities," he said. Gaskin added that "the quality of your information has a direct bearing on your bottom line."

Wrap-up panelist Pete Speek, Fremont Forest Products, related mistakes his company has made as failure to purchase railroad land

tuilBEB ll{llUSTRY veterans lll Ed Fountain, Milt Johnson, Ed Gavotto. l2l Marty Temple, Lumberman of the Year Bill Cowling. l3l Kevin & Patti Lindsay, Kathy & Steve

Thurgood. l4l Jim Moss, Diane & Randy Port, Michael Learned. (51 Frank Velez, Phvllis & Pete Speek. 16l Gordon 8each, Br-ent & Michelle Bouslog, Bill Jones. l7l Matt Hal-

lendy, Al Martin. l8l Larrv & Mvone Bollinoer. l9l [isa & Pat Hawthorn'e. (l0l .lonn easlin, Mark Lofland, Don Gregson.

LASC CONFERENCE

(Continued from previous page)

when it was cheap, an underresearched Phoenix venture and the inevitable credit losses. Stressing the importance of people, he reviewed systems Fremont uses to maximize their success, noting that the company is enjoying one of their best ever years. "Fremont is near optimum size, now it's a process of fine tuning," he concluded.

Following speaker that morning was Dr. Michael Carney, Residential Research Council of Southern California, who said that while home construction had recently picked up, most banks were forecasting fewer housing starts in 1989 with 1990 even worse. Carney noted that as 1988 is the seventh year ofsustained growth, recession forecasts were popular, but that there was no intrinsic reason for one to occur. He thinks some inflation is likely in 1989.

The panel discussion that con-

cluded the business portion of the conference began with Chuck Weaver, Chandler Lumber, speaking on motivation, the panel topic. He noted that recognition, rapport and constructive criticism aided motivation, as did management sharing responsibilities. Consistent company goals are very helpful, Weaver said.

Mike Petter, Learned Lumber, after relating an unsuccessful venture into commercial fishing, stressed that his prime motivator is his family. Following that, he observed, are his work and lastly the goal of someday again owning his own company.

Kevin Breen, Snavely Forest Products, described three factors personally motivating to him: (l) pay tied to performance; (2) challenging environment, and (3) company leadership.

Final panelist Art Hanneman, a consultant to Terry Lumber Co., described motivation as the thing that causes certain behavior, whether through fear, a warm relationship or

money. He noted the importance of motivating new employees by adequately training them from day one.

The balance of the conference was devoted to the annual dinner dance followed by golf and tennis on the last dav.

1989

OFFICERS: Martyn Temple, president; George Swartz, 1st vice president; Daryl Bond, 2nd vice president; Robert Slettedahl, treasurer; Bill Sullivan, secretary.

EXECUTIVE COMMITTEE: Daryl Bond, Phil Butterfreld, Richard E. Hawthorne, E.L. Newkirk, Robert Slettedahl, George Swartz, Martyn Temple.

DIRECTORS AT LARGE: Gordon Beach, Stanley Brown, Phil Butterfield, Ralph Cardwell, George Clough, William Cowling II, Ed Fountain, Jr., James Frodsham, Peter Ganahl, Richard E. Hawthorne, Charles Jenkins, Milton Johnson, Kingston McKee, Terry Mullin, Paul Orban, Jr., Frank Purcell, Peter V. Speek, Gordon Woolard.

NLBMDA DEALERS-DIREC-

TORS: George Champion, Charles Goeser, Wayne Gardner.

ARf,A DIRECTORS: Warren Lindsay, Eastside; Donald Olson, Allen Quimby, San Diego area; Ross Callaway, Upland/Ontario/?omona; Robert Slettedahl, Riverside; Russell Fritchey, San Gabriel; James Barr, Imperial Valley; Jerry Holdren, San Bernardino; Robert Ransom, North San Diego; Erik Jorgensborg, Westside; Charles O'Donnell, Santa Barbara/Ventura; Jerry Higman, Ted Schafer, Jr., Terry Wesseln, Orange County; Russell Mullin, Marc Myers, San Fernando Valley.

WHOLESALE DIRECTORS:

Creighton Anfinson, Jack Berutich, Daryl Bond, William Evenson, Mark Lofland, Ted Pollard, Jack Secoy, Blaine Smith, Bill Sullivan, Martyn Temple. Wayne Gardner, executive vice president.

Quick Quotes for 1989

A random sampling of ideas and opinions

" ...1.3'7 million housing starts in 1989, a 5 to 60/0 decline from the 1.45 to 1.50 million starts expected this year."

David Seiders

Chief Economist National

Association of Home Builders

"The deficit outlook is more of a moral issue than an economic issue not too likely to cause any economic devastation over the shorter term."

Rudolph Penner

The Urban Institute

"The most profound impact on housing finance will occur in the political and policy arenas."

Martin Regalia

YOUR BEST SIDING DECTSTON ls.

Vice

President &

Director of Research & Economics National Council of Savings Institutions.

"We have reached and passed the cyclical turning point for this downturn."

Cahners Economics

"Residentialbuilding will be squeezed in 1989 in both the one family and apartment sectors."

George A. Christie Chief Economist

McGraw-Hill Information Services Co.

"Retailers must adjust their expectations. a good performance is not a double-digit gain. It's 60/o or 20/o after inflation."

Rosalind Wells

Chief

Economist

National Retail Merchant Association

"Although radon is well established as a cause of lung cancer, it is not yet clear what the nature of the increase in risk is at the lowest levels found in homes."

Dr. Stuart L. Shalat

Professor of Medicine and

Yale

University

Epidemiology

"Housing inflation has depressed our economy, frenzied our psyches, divided our society. A turnaround would be nerve racking, but no bad thing."

Michael Kinsley

Columnist

Washington Post

"This year appears to be the last hurrah for single family housing." Weyerhaeuser

Five wood veneer layers give PLYLAP outstanding stability and performance. Plus PLYLAP does not swell or warp like imitation molded fiber sidings, or split and curl like lumber sidingsl PLYLAP is available in 45 siding choices of Douglas Fir, Redwood, Cedar, or MDO plywoods.

LACO LUMBEn,INC.

1500 Case Place/ PO Box 1130

W@dland. Calrlornia 95695 (916) 661,0812

Manufacturers of Plylap@ Siding

NEW LITERATURE

Nail Shop

"A Helpful Guide to Buying & Selling of Maze Nails" is free from W.H. Maze Co., by calling (800) 435-5949.

On Storage

An 8-p. brochure of hardware and storage products for d-i-yers is free from Crawford Products, by calling (800) 2255832.

Plywood Producers Directory

American Plywood Association Membership & Product directory (form K815A) is free from APA, Box 11700, Tacoma, Wa. 98411.

Light Posts

An ornamental lighting post brochure (No. 23) is free from Spring City Electrical Manufacturing Co., PO Drawer A, Spring City, Pa. 19475.

Deck Connector Poster

Wood deck promotion posters highlighting l8 diflerent framing connectors are available from Lumberlok, by calline (800) 221-7905, or (800) 221-7906 in Ca.

Bath & Shower Enclosures

A bath and shower enclosure catalog is free from Style-Rite of America, 118 Seger Ave., Clifton, N.J. 07011.

In Control

"How Does Your Business Stack UP Against Industry Leaders?," a 28-P' pamphlet of lumber yard/home center business tips, is free from Triad Systems Corp., by calling (800) 538-8597.

ABCs Of MDF

"MDF From Start to Finish," a technical guide explaining fabricating, laminating and finishing processes for medium density hberboard, is $3 from the National Particleboard Association, 18928 Premiere Court, Gaithersburg, Md. 20879.

Span Computer Kit

A Span Computer Training Kit, including a 30-min. video, workbook and span computer, is $25 from the Western Wood Products Association, Yeon Buildine, 522 SW 5th Ave., Portland. Or.97204.

Truckin' By Hand

A 4-p. consumer hand truck catalog is free from Harper Trucks Inc., by calling (800) 835-4099.

Lighting Turn Ons

A 10-p. decorative lighting fixtures catalog is free from Prestige Products, by calling (800) 648-5267.

Quality Vanities

A 4-p. beveled door and trim mirrored bath cabinet brochure is free from Robern. Inc.. 1648 Winchester Rd., Bensalem, Pa. 19020.

D-l-Y Doors & Windows

Make Your Own Handuafted Doors & Windows is $14.95 in paperback from Sterling Publishing Co., 2 Park Ave., New York, N.Y. 10016.

Pipe Down

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

Electrically Yours

A 60-p. electrical products catalog is free from Design House Products, by calling (800) 333-9450.

Home Builder

"American Plywood Association House Building Basics," a 36-p. woodframe construction guide, (form X46lH) is free from APA, Box 11700, Tacoma, Wa. 98411.

Videos On Vinyl

Two vinyl siding videos are available from Mastic Information Center, Box 213, St. Joseph, Mi. 49085.

Tiles On File

Two new vinyl floor tile binders are available from Azrock, Box 34030, San Antonio. Tx.78265.

A 22-p. design guide on a new automatically-locking, corrosion-resistant pipe is free from Litchfield International, by calling (800) 345-2542.

Panel Buyer Poster

"How to Spot the CedarPro Shopper," a poster on selling to plank paneling customers, is free from P&M Cedar Products, 2423 W. March Lane, Stockton, Ca. 95207.

lnsulated Stucco

"Stucco on Styrofoam," a 6-p. insulation brochure, is free from Dow Chemical Co., 2020 Willard H. Dow Center, Midland, Mi. 48674.

How to Get Decked

The Connect-A-Deck brochure, a 24panel folder of deck-planning sugges' tions, charts and drawings, is free from Simpson Strong-Tie, Box 1568, San Leandro, Ca.94577.

Architectural Woodwork Guide

The 5th ed. of Architectural Woodwork Quality Standards, Guide SpeciJications and Quality CertiJication Program is available from the Architectural Woodwork Institute, 2310 S. Walter Reed Dr., Arlington, Ya.22206.

GLASSIFIED ABUERTISEMENTS

WEBER Plywood & Lumber Co. is seeking an enthusiastic person experienced in hardwood plywood and lumber sales. All applicants will be handled confidentially. Call Butch or send resume to Weber Plywood & Lumber, PO Box 1045, Tustin, Ca. 92681. (800) 432-7300.

NORTHERN California Wholesale Distriburion Yard has outside sales position open. wholesale experience preferred. Contact Kent Bond or Jeff Howard at (707) 894-4281 or send resume to: All-Coast Forest Products, Inc.. P.O. Box 9, Cloverdale, Ca. 95425.

WHOLESALE plywood & lumber company seeking full time credit manager with industry experience to handle accounts receivable through legal. Computerized environment. Send resume to weber Plywood & Lumber, PO Box 1045, Tustin, Ca. 92681.

Twenty-five (25) words for $21. Each additional word 700. Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $6. Box numbers and special borders: $6 ea. Col. inch rate: $45 camera ready, $50 ifwe set the type. Names ofadvertisers using a box number cannot be released. Address replies to box number shown in ad in care of The Merchrnt Mrgrzine, 4500 Campus Dr., Suite 4E0, Newport Beach, Ca. 92560. Make checks payable to The Merchrnt Mrgazine. Mail copy to above address or call (714) 852-1990. Deadline for copy is the 22nd of the month. PAYMENT MUST ACCOMPANY COPY unless you have established credit with us.

HERITAGE

LOCAL LUMEER hauling Southern Cdifornia roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in Long Bcach. 3C Trucking (213) 4224/26.

COMPUTER SYSTEMS AND PROGRAMS MULTI-USER/PC/)(T/AT/M IN I

AND

Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Call Bill Hunter. Hunter Woodworks. (213) 7'l s-2544: (21 3) 83 5-s671.

COPELAND LUMBER 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 kept confidential.

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Harold "Hal" ReeYe, a veteran Oregon lumberman, died Nov. l, 1988, in Mapleton, Or. He was 55.

Born in North Bend. Or.. Mr. Reeve spent 19 years with Davidson Industries, Mapleton, working his way up to general manager. In January 1986, he became sales manager of Herbert Lumber Co.. Riddle. Or.

He left eight months later to work closer to home, joining Swanson Lumber Co.. Noti. Or., as sales manager. On Sept. l, 1988, he opened his own wholesale lumber brokerage firm, Harold Reeve Wholesale, Mapleton, which now will be wound down.

Mr. Reeve is survived by his widow, Betty, his mother, two sons, two daughters, a brother, a sister, and seven grandchildren.

Jerry L. Breshears, production manager for Arizona Pacific Wood Preserving Corp., Eloy, Az., died Sept. 23, 1988, in Tucson, Az. He was 45.

Born in Hot Springs, Ar., he had worked with Martinez Plywood, Martinez, Ca., prior to joining Arizona Pacific in 1982.

Mr. Breshears is survived by his widow, Cheryl, his parents, one son, one daughter, four brothers, three sisters, and one grandson.

(Continued from page 40) ing the third quarter. Washington, D.C. and Riverside/San Bernardino reversed positions from the second quarter, with the nation's capital taking the lead with 12,846 units, uP l0l0. The West Coast area placed sec-

ond with 11,103 units, down 8o/0. The rest of the nation's toP l0 housing areas in the third quarter were: Los Angeles/Long Beach, 10,320 units, down l0o/o; Atlanta, 10,071 units, down 21%; Philadelphia, 7 ,469 units, up 15%; Chicago, 7,295 units, down 7lo/o; Detroit, 6,980 units, down 6%l Minneapolis/ St. Paul. 6,037 units, down l2olo; Seattle. 6,022 units, up l5o/o; and Phoenix. 5.021 units, down 370/0.

Real Estate Crash Rebutted

Despite dire predictions of a real estate doomsday caused by four years ofrunaway price increases, real estate will continue to rise in value over the long term, according to the National Association of Home Builders.

Although prices will fluctuate based on supply and demand, interest rates, and the costs of new construction, land and replacements, history has proven real estate values will climb over time, says NAHB executive vice president Kent Colton. His reported evidence:

r Rapidly rising housing Prices (up 31% nationally since 1984) are more a regional than national phenomenon.

o Housing is protected from the mass hysteria that can lead to a run on stocks. "You can't sell a house over the phone," he says. "Even in a really hot market it takes weeks to list, sell and close a house."

o Housing is primarily a usable, essential commodity, unlike stocks which are only investments.

All of us at WOLFE LUMBER thank our valued customers and suppliers. We look forward to our continued association in the upcoming New Year!

WEYERHAEUSER WINTERGREEN

Nature can take a nap during the winter, but you can't. Your business has to stay green to keep growing.

Let Weyerhaeuser help. How? This winter your Weyerhaeuser CSC is having a series of specials on a variety of Weyerhaeuser distributed products.

The best part is that all of these products are rooted in one thing - 100% satisfaction guaranteed.

This satisfaction starts with your order: a single phone calf for a diversity of products, a single delivery truck and a single set of invoices.

Your Weyerhaeuser CSC sales representative will be contacting you soon aboutWintergreen specials or call the CSC closest to you today.

Western Customer Service Genterc

Anahelm, CA

(714) 772-5880

Cerrltos, CA

(213) 926-6619

(714) 521-8610

Denver, GO

1-800-332-8291 (co)

Fontana, CA

1-800-647-7762 (CA)

Fresno, CA

1-800-742-1939 (CA)

Hayward, CA

1 -800-672-21 30

Long Beach, CA (213) 436-8475

Los Angeles, CA

1-800-282-6210 (CA)

Phoenix, AZ

1-800-358-6237 (AZ)

Portland, OR

1-800-522-881 1 (OR)

1 -800-847 -441 4 (Outside oR)

Sacramento, CA

1-800-9s2-5616 (N. CA)

1-800-521-1374 (NV)

Salt Lake City, UT

1-800-662-8585 (UT)

1-800-453-8091 (Outside UT)

San Jose, CA

1-800-821-0737 (N. CA only)

Seattle, WA

1-800-s62-0908 (WA)

1-800-238-9282 (Outside WA)

Sepulveda, CA

1-800-321-0728 (CA)