Merchant Magazine - December 1991

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

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From the minute You place Your order, to the time it is delivered, we guarantee Your total satisfaction. Service unparalleled in the industry. Call Your friendly PMI customer service representative today to find out how your competition is getting ahead with PMl.

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osidelights o transom sash o door trim o ironing

board cabinets

Henderson Black & Greene Columnsoturned

Holiday Ref,lections

At this special time of year, we should all take pause to quietly contemplate the joys of the holiday season.

O.tt traders and distribution staff joinwith us in wishing you, your employees and all your families the joys of this season and peace and happiness in the year ahead.

W" at Western Woods hope the new year will be a prosperous one forall. For over 20 years, we have always tried to do our best to meet your needs and in that tradition, we will make every effort to be a part of your continued success.

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DAVID CUTLER editor- publisher

ls Future Shock in yourfuture?

lN fUe following pages you'll find what the Ile,aders and experts of this business expect in 1992 and 1993. The section is packed with prognostications you'll find helpful in business. Here we present some philosophical thoughts about the future. We hope the ideas of these great minds will help us all to better contemplate and plan for that inevitable future.

"You can never plan the future by the past." Edmund Burke 1139-1197.

"...all the past is future." Robinson Jeffers 18871962.

"...the never ending flight of future days." John Milton 1608-1674

"Whoso neglects learning in his youth, loses the past and is dead for the future." Euripides 484406 B.C.

"The future enters into us, in order to transform itself in us, long before it happens." Rainer Maria Rilke 1875-1926.

"If we open a quarrel between the past and the pre-

sent, we shall find that we have lost the future." Sir Winston Churchill 1874-1965.

"It is much less what we do than what we think. which fits us for the future." Philip James Bailey l816-1902.

"Behind the curtain's mystic fold the glowing future lies unrolled." Bret Harte 1836-1902. -

"I see not a step before me as I tread to another year; but I've left the past in God's keeping, - the future his mercy shall clear; and what looks dark in the distance, may brighten as I draw near." Mary Gardiner Brainard 1837-1905.

"I believe the future is only the past again, entered thrgggh another gate." Sir Arthur Wing Pinero 1855-1934.

"I have but one lamp by which my feet are guided, and that is the lamp of experience. I know no way of judging of the future but by the past.,' Patrick Henry 17 36-1799.

"If you do not think about the future, you cannot have one." John Galsworthy 1856-1933.

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Slow recovery for lumber suppliers

By T. R. Ingham, Jr. President Simpson Timber

T THIS time it appears l99l will Flconclude with housing starts at their lowest level since 1946 and real GNP growth will be slightly negative. All indicators are the recession is at or close to the end. However, it will probably be the spring of 1992 before we can look back with confidence and say the recession is a thing of the past.

Forecastine what this means for housing and our related industries is a hazardous assignment, but like most firms who are planning for next year's business, we have had to form some judgements. First, we are assuming the recovery will be slow and gradual with housing starts reaching 1.25 million and real GNP growing at the rate of 2.5Vo. The demographics of net household formations and removals would imply a demand of 1.55 million starts but we believe the nationwide credit tightness and high consumer debt load will moderate construction activity.

If the above assumptions are achieved, total U.S. lumber demand should reach 47.9 billion board feet versus 1991 usage of 43.8 billion. Structural panel usage in our country is forecast to be 27 billion square feet which would be 4Va sreater than 1991. Also, we believe refair and remodel will remain a significant factor accounting for about 30Va of consumption.

All of our markets are more demanding in terms of quality and rapid response to expectations. The concept of just-in-time inventories as experienced by the unusually rapid depletion of inventories prior to the business downturn is a way of doing business today.

Unfortunately, our business forecast is clouded by the ongoing rash of environmental issues. Numerous well-

Story at a Glance

1.25 million housing starts...

2.5o/o rcal GNP growth...47.9 billion board feet lumber demand...repair and remodeling will remain 30% of consumption...industry must contanue to fight for harvest rights.

financed groups are politicizing the science of forestry which ultimately will result in a reduction of the harvest levels from both public and private commercial timberlands. Even companies like Simpson, which prides itself on practicing sustained yield forestry, will be negatively affected by these takings. Some may view this as only a western issue but wetlands and other potential listings of endangered species are affecting other areas of our country.

Many people are skeptical of a timber shortage but we need to remember that we are finishing a year of very low housing starts and there is still public timber under contract. If there is no relief to the environmental frenzy and the market demand continues to improve, it is likely we will begin to experience significant timber shortages as the public timber currently under contract is depleted. We may see signs of this in 1992 and it will be a certainty in 1993. Our country is not running out of timber; we are losing the ability to manage and harvest our commercial timberlands due to the political and regulatory process.

All of us have a responsibility to work to change the tide of environmental extremism. We must continue to build strong coalitions at all levels of our industry to ensure our voices are heard.

Affordable housing & you

By Harry A. Merlo Chairman and President Louisiana-Pacific Corp.

f, ITHOUGH we are all hopeful Athat 1992 will bring a strong economic recovery and a sharp uptum in the construction market. the truth is that none of us know what the next 12 months will bring.

So rather than an economic forecast, I'd like to use this forum to tell you about some of the things that are on our mind at Louisiana-Pacific as we plan for the coming year.

One of our big concems is the affordability of housing. At the same time as we work hard to develop products that maintain affordability, we're finding more and more government agencies imposing fees and regula-

tions th4t drive housing costs up. Fortunately, the U.S. Department of Housing and Urban Development under Secretary Jack Kemp has recognized the problem and they've asked for help from all of us to get it under control. H.U.D. has published a fascinating study called "'Not in My Back Yard: Removing Barriers To Affordable Housing." The report concludes that a web of unfair fees, unnecessary red tape and overzealous regulation has priced millions of Americans out of the housing market.

I hope you'll get a copy of the report (it's available for $3 by calling (800) 245-2691) and do your part to help break down the barriers it describes. You also can call the National Association of Homebuilders at (800) 368-5242 ext. 329 to find out what specific steps you can take in your community to fight the problem. It certainly is in our interests as businessmen, but, more importantly, it affects us as parents and grandparents and as Americans.

Gautious optimism

By William M. Shields Executive Vice President, Wood Products Weyerhaeuser Co.

THe 1992 outlook rbr wood prod- I ucts is very encouraging. Demand, weakened during 1990-91 by a deteriorating economy and concern about the Gulf War, should improve and exceed the 1988 peak by 1994.

Interest rates are expected to continue to decline throughout mid1992 and could lead to single family housins starts recovery. We expect starts to be in the l.l-1.2 million range by the fourth quarter. Multi-family starts, however, are expected to remain weak, putting a mild damper on overall demand.

With existing home sales up and interest rates down, the repair and remodel segment should rebound.

Suppty will be the key issue for

1992 and, most likely, for much of the remainder of the decade. Public attitudes, combined with govemment restrictions, are significantly limiting raw material from public and some private forestlands, particularly in the Northwestsupply needed to support the expected rebound in home construction.

The implication for lumber and other building products is that real prices, which have been essentially flat for most of the '80s, ought to rise significantly, well above the 1988-89 levels.

Predicting exactly where prices will go is difficult. We have never been in a situation where demand was increasing while supply response was significantly constrained.

Supply constraint will also affect the kinds of products that will be produced in 1992. With less "solidwood" sawlogs available, look to see increased use of engineered products and products like oriented strand boardproducts made either from lower cost raw materials or residual products such as chips and sawdust.

Also on our minds is the growing awareness worldwide, but especially here in the U.S., that we need to take a careful look at each of the products we produce to be sure they are as friendly as possible to the environment. Although it's not recognized nearly enough, those of us who manufacture and sell wood products have a big advantage in that area since among major building materials, wood alone is a renewable resource. Often overlooked. too. is the fact that wood building materials require much less energy to produce.

What we need most is a renewed pride in what we do in our industry. We provide products that people needboth in America and throughout the world. And we produce and sell those products with great sensitivity to our country's environment.

Story at a Glance

Affordable housing should be concern of everyone in wood products business...wood building materials have big environmental advantage.

Raw material shortases will affect geographic regions diffErentially. For example, average tree size will decline in the South. Coastal Canada will be affected by environmental constraints. The U.S. Forest Service harvest plan revisions will affect the West Coast region and could, over time, have an impact upon the inland region.

In summary, we see 1992 as the turning point in the current downcycle. Demand and prices should improve, especially in the second half. We see a shift to more use of engineered wood products and products reconstituted from residuals of other product processes. From a raw material standpoint,1992 and the rest of the '90s will be quite different from the '80swith each producing region experiencing its own supply issues.

Story at a Glance

Outlook encouragang... 1 .1 -1 .2 million housing start pace by fourth quarter...supply constraints, higher prices, increased use of engineered and reconstituted wood.

Western lumber: here to stay

By Robert H. Hunt President Western Wood Products Association

ftelucrANT bankers, a dubious I leconomy wallowing in the wake of consumei doubt, a iimber supply gridlock with an environmental holy war threatening to make things even worse, a producing industry short on both raw materials and markets, and government and politicians chipping away at free enterprise rights at every tum ...hardly a scenario for positive fhinking if you are in the lumber busiNESS.

But take heart. In this business we create what both civilization and the environment muSt have to survive - wood products. It is but a matter of time (certainly the sooner the better) before that reality takes hold.

In the meantime, times are tough, and will get tougher before interlocking sets of pertinent but complex factors play themselves out. When that happens, don't look for the norms of the past to remain the norms of the future. And don't think there's a magic reset button that will put everything-in the comfortable formats we have known.

The bad news is the westem lumber industry no longer expects to continue producing at its historic volume levels. That will affect the expectations of the distribution svstem. one that perceptive retailers and wholesalers already understand. Western lumber produption, dogged for the past year by slow markets (which always come back), will be dogged next year by slow log supplies (which will not return to old levels of abundance in the foreseeable future).

Next year, even though logs will be extremely tight, the assumption is that industry creativity will surface enough of them to meet demand. If that is so, 1992's projected western lumber production of 20.480 billion board feet should be greater than average annual production of the two decades ending in 1990. In fact, WWPA sees 1991 production of 19.985 billion board feet also exceeding yearly averages of that period.

Even though current production is below all-time record years of the late 1980s. 20 billion board feet remains a lot of lumber. Western lumber manu-

facturing and distribution are here to stay, but it is certain we will be changing to meet the changing times.

Any conceivable rationale that accepts human civilization will survive and flourish on this planet dictates that the natural environmental issue and the human economic issue can be resolved only if addressed simultaneously. There is a school of thought that says they are the same issue and always have been.

Consider the following in contrast with today's adversarial economic/environmental stand-offi

Endangered species habitat programs aggressively designed to incorporate human existence, rather than to terminate it. Logging practices that extend sensitivities to cover a multiplici- ty of environment-related values heretofore avoided due to high costs. Environmental benefits of wood products over non-wood products factored into specifications along with cost advantages, helping offset greater production costs needed to meet demanding environmental requirements.

Story at a Glance

Western wood products will survive despite tight log supp|ies...20.480 billion board feet production in '92...new thinking needed...environment and humans will learn to co-exist.

We have not yet begun to probe problems in this light. It is the thinking (if not the actual thought) of a leadership yet to emerge, and of an enlightened, environmentally-sensitive citizenry.

The efforts to protect our raw material base being conducted at the grassroots in the West and at legislative and regulatory levels in Washington are critical to the future of the forest products business. But the environmental positioning of our product has hardly besun.

Mild recovery

By John W. Mitchell Senior Vice President and Chief Economist U.S. Bancorp

EOOM years in the Pacific North9west ended in l99l as the national recession moved from the newspaper to the labor markets. The 5Vo+ em-ployment growth rates in Idaho and Washington and Oregon's 3.2Vo dropped. BySeptember, Washington's wage and salary employment growth was down to .3Vo, Oregon, l.4Vo, and ldaho, 2.4Vo.

The forest products industry in this Persian Gulf of Timber continues to shed jobs, reflecting slow rebound in demand and continuing policy uncertainty over public forest management. Timber sales in owl habitat administered by the Forest Service have been shut down by legal action and the BLM has requested convening of the

Story at a Glance

Slow rebound in Northwest ...ldaho bucking national trend in building and employment...wa., or., ld. will continue above-national-average population growth.

Endangered Species Committee. Residential building permits in Oregon and Washington are running 30 to 4OEo below last year with massive declines in multifamily permits. Idaho is bucking the national and regional trend with permits through August l3%o ahead of last year.

The region's performance in'92 will depend heavily on whether the national economy is in a recovery mode or headed for the dreaded election year double diphtheria. I believe we are in a slow recovery that will

(Please turn to page 22)

Good news in'92

By Steve Johnson Executive Director Home Center Institute ter, last

OR those who believe the less said about 1991 business the betthere's good news for '92. Late summer retailers began saying business was looking better. The Home Center Institute's economic forecast bears out their reports.

We expect the retail home improvement business to recover from the 1990-91 recession

than other segments of the economy. Following a flat 1991, we forecast real sales increases (adjusted for inflation) of 3Vo (real dollars) through 1995. This compares to forecasts of 1.97o real annual growth for all U.S. retailing through 1995.

Growth in the retail home improvement industry is slowing from its

boom years of double digit increases. We see little net increase in the number of store units coming into the market, although turmoil among home centers will continue with some opening new stores and others pulling back.

Slowing rates of sales growth and stagnant unit growth are classic characteristics of a maturing retail industry.

They also describe a fiercely competitive market in which the best managed companies survive and prosper.

The industry is adjusting to a market-share battle, where growth comes less from an expandin{ market than from taking business from competitors. The do-it-yourself ,consumer market, which drove home improvement sales for the better part of the 1970s and 1980s, is changing, too.

A study published this year by the Russell R. Mueller Retail Hardware Research Foundation fowd that 78Vo of U.S. households are already involved in do-it-yourself projects. While the rate of participation is not expected to increase substantially, the

Remodeling roller ceaster

By Bill Greene, CRA President National Association of the Remodeling Industry

FlesPlrE the ongoing housing

Yand real estate slump, the professional remodeling industry continues to show strength. The latest Census Bureau report shows high maintenance and repair expenditures for homeowners, with experts anticipating year-end figures reaching over $111 billion

crease since 1989.

Most NAR.Imember contractors report slow but steady business. Many contractors find themselves looking for their next job as they put the final touches on the job they've just finished. This lack of a job back log will be an important factor as we head into the colder months when business generally slows until spring. In times such

as these. homeowners tend to maintain with hard-earned money being spent on repair and replacgment rather than on major, "non-necessary" remodeling projects. In fact, this movement towards repair and maintenance has given some remodeling firms the chance to make up for lost business by opening separate handyman divisions. These operations are devoted entirely to projects that a homeowner must repair due to everyday rlear and tear on a home. Jobs such 4s these may have been tumed down during more prosperous times, but are now welcome.

While overhead costs have remained stable, many remodelers have had to lower their profit margins to remain competitive. This, of course, means that smaller eontractors have a more difficult time withstanding the storm than larger firms. What has helped the professional remodeling contractor is the vast array of new building industry prqducts and product lines that have made previously custom products standard. These new products have allowed homeowners as well as contractors to become much

d-i-y consumef market will grow by about 7 million households during the rest ofthe l990s.

Given time pressures faced by most families, we anticipate the trend to buy-it-yourself and have someone else do the work will continue.

Story at a Glance

Real sales increases of 3o/o (adjusted for inflation)...compound'annqal sales growth of 3% (real dollars) through 1995...7 million more households in d-i-y consumer market...retail home improvement business will improve in '92.

Financial pressures, begun in the 1980s and exacerbated by the latest recession, may cause homeowners to delay or scale back some big-ticket home improvements, but we believe this is a short-term circumstance. Long terrn, homeowners have good reason to maintain and improve their homes: a home is the biggest asset on most personal balance sheets.

Story at a Glance

Professional remodeling industry continues to show strength...new building products allow cost effectiveness ...tighter cash flow hampers contractor buying power.

more creatlve...

While recovery seems to have taken a foothold in the West. remodelers in other regions continue to ride the roller coaster of economic ups and downs. I believe these inconsistencies will continue through 1992. I believe remodelers will see steady work with perhaps occasional quiet weeks during the winter months. This will, of course, lead to reduced cash flow and buying power. Little to no product inventory will be kept on hand since cash flow will be tight and profits lower. This means remodeling contractors will be paying a little more per item for smaller quantitiesjust enough to get through the presentjob.

We can only hope th4t lending institutions will continue to loosen up on credit and, keep interest rates low.

rapidly

Maneuvering the maze Story at a Glance

By Stephen C. Brown President MacMillan Bloedel Buildine Materials

El lorrING a course of action in f- our industrv has become as difficult as maneuvering a successful path through an ever changing maze.

Although interest rates are currently very attractive for home buyers, the tight policies of the lending institutions have not allowed home builders to see any significant turn around in the housing market. The housing market should be somewhat improved in 1992, but not be enough to provide the increased demand our industry desperately needs.

Concern over the economy has brought consumer confidence to its knees. Efforts will be made to stimulate the economy during an election

year, but these efforts may fall on deaf ears. The stimulus must have real and lasting positive effects on a more informed public. Efforts must be made to increase investment in job creating sectors of our economy.

It is time for our elected officials to stop playing politics. We all look to our government to be pro-active rather than reactive.

Projecting for 1992: the past improvement in the repair and remodeling segment should continue. The public will continue to spend money to improve their homes. More specifically, the public's desire to get out of their homes should provide significant opportunities for the lawn and garden segment. Many consumers will enhance their homes and lifestyle by adding decks or enlarging existing decks.

After three slow years in the housing sector, the real unknown for 1992 is when a turn around beeins. Although there is currently littG indication that demand will increase sienificantly in l992,the real winners ioday are the new home owners. With low

Better housing year

By Tom Denig President and CEO Trus Joist MacMillan

A venal-I-. we rhink thar 1992 Ywill be a better year for housing, though we certainly won't see the sharp rebound we've experienced exitlng prevlous recessions. Interest rates have recently become quite attractive. Banks are starting to adjust, however slowly, to the new, tighter lending rules.

Our best guess is that housing starts will range between l.l and 1.5 million. That represents an increase of lO-ISVa from today's depressed levels, the lowest since 1945. It's been a year for survivors, and next year those survivors should start benefiting from an improved market.

Structural composite lumber products continue to expand their market

penetration, and 1992 should be no exception to this. Engineered wood structural components have found a growing acceptance for a number of reasons.

Old-growth timber is rapid,ly becoming a scarce commodity. What's available now from the second and third growth commercial forests is often of unsuitable quality for structural applications. Trends also indicate that solid-sawn lumber prices will continue to increase over time. These combined facts lead to engineered wood products as the long-term solution to the structural applications previously provided by sawn lumber.

Structural composite lumber and wood I-joist products put much less pressure on our dwindling old-growth forest resources. They accomplish this in three ways: by initially recovering more of the log for structural purposes than traditional sawmill methods: bv using currently non-commercial species; and by employing wood fiber in far more efficient methods. As an example, our new PSL 300 long strand lumber uses almost the entire

could be the light at the end of the tunnel.

interest rates. reduced land costs and lower labor and materials costs, the consumer may not have a better opportunify to buy a new home. No one is projecting a turn around in the housing sector. However, the industry did not see the turn around in 1983. The existing home surplus could be rectified quickly with a boost in consumer confidence and some changes in our lending institutions. A better than anticipated housing market will create much higher building material costs due to supply reductions, especially products from the Western United States and Canada.

The industry needs a boost. It will come, but the major question is "When?" 1993 could be the lieht at the end of the tunnel.

log with the bark converted into heat and energy. This is a much higher recovery rate than a sawmill producing dimension lumber can achieve. We also use aspen, rather than the expensive and dwindling fir and pine resources. Our joist is a structural member that uses about half the wood fiber, yet achieves results far superior to those of a comparably sized solidsawn joist.

Next year we should see structural composite lumber start to transcend "specialty" status as the prototype lumber preferred for quality construction. A healthier market should speed this along.

Story at a Glance

Better environment for housing...starts between 1.1 and 1.5 million, a 10-15% jump ...structural composite lumber products growth will continue solving some old growth availability problems...advantages will lift it from specialty status.

Housing somewhat improved ...more repair/remodeling strength...higher material costs due to supply reductions...1993

Opportunities from change

By William E. Baugh President William E. Baugh & Associates

lf lS not newsworthy to point out Ithat the building supply industry is struggling. We are, and have been, in a recession that has reduced consumer spending and confidence and created rigid credit policies. The result is an extremely low level of housing and commercial construction. Lagging starts will probably continue.

Products that senerate sales are directly linked to new housing and, to a lesser extent, remodeling and d-i-y markets. To protect the future, we must examine the "derived demand" characteristics of building supply sales.

Housing activity stalled as we

evolved into a glut economy. The pent up demand caused by World War II and the "baby boom" entered a new phase of demographics with a "baby bust." Most baby boomers are now housed with young children who will not form families in the immediate future.

Much publicity has been given to the concept that if long term interest rates were reduced, homebuilding and sales would rebound. However, other factors negate this solution: high consumer debt, low consumer confidence, difficult affordability, reduced leverage for developers and fewer potential buyers.

Second homes for people of retirement age will continue at a pace equivalent to past activity. These potential buyers will be the wealthiest generation on record.

Our industry serves two markets, the contractor and the do-it-yourselfer, but they have changed. Management needs to grasp the opportunities change has created. Aggressive mar-

Tleaters optimistic

By Dennis Hayward Executive Director Western Wood Preservers Institute

firrrutsM for improvements in Ythe short term and moderate growth in the long run characterizes the lumber and plywood pressure treating industry as we look to the new year. After a decade of strong growth in the residential market, pressure treated production has leveled off since 1987 and dropped consistent with the general economic slowdown.

The political debate over forestry issues will remain unresolved in the coming year. Uncertainty will continue to restrict supply and increase raw material costs in the West where vast public forest lands are a dominant source of supply. On the flip side of the coin, most pressure treated products can be produced from the increasingly abundant and less politically vulnerable privately held second growth

managed forests.

There is no doubt that wood enhanced by pressure treating will maintain its competitive advantages over substitutes. Accelerated programs will be implemented in the coming year to educate consumers about the safe and wise use of treated wood products. An educated public, concerned with conserving natural resources as well as protecting personal investments, will turn increasingly to wood protected from the natural enemies of rot, disease and insects. As the price of traditional old growth redwood and cedar products increases in response to supply constraints, pressure treated products will become increasingly attractive.

Following the general lumber consumption trend, residential remodeling has grown in importance to the treating industry. In 1990 remodeling consumed 68Vo of the treated lumber, up from 49Vo in 1983. During the same period new home construction use dropped by almost half, from 24Vo to l3%o. Even pessimistic projections see national consumption of treated lumber in 1992 to be double the level of a decade earlier.

keters are expending more capllal and energy pursuing consumers. The decreased sales volume in selling d-i-y versus contractors is generally offset by increased margins.

1992 will not be a banner year in commercial and residential starts. There is a strong possibility housing starts will range from I million to l.l million units nationally. Pockets of activity will be overshadowed by weakenlng areas.

Story at a Glance

Lower interest rates will not offset high debt, low consumer confidence, affordability problems, reduced leverage for developers and fewer buyers...adapting to changes in markets necessary for survival.

Diversity of markets and available treatments adds to the health of the industry. While home construction, remodeling and landscape products are key markets, agriculture, utilities, transportation and marine construction are a major part of the customer base. Improved and innovative treatrnent of western species and laminated products is helping to balance the general economic slow down. Producers are continually seeking new and improved applications.

Adapting to a changing social, political, physical and economic environment is never easy and the lessons are often leamed at great expense. But the members of the Western Wood Preservers Institute believe a brishter future lies ahead.

Story at a Glance

Diverse markets, increased remodeling use, abundant, less politically vulnerable second growth lumber supplies build optimism for moderate growth in long run... pressure treated wood will remain competitive.

Tleated lumber changes

By Victor E. Lindenheim President American Wood Preservers Institute

A;**tl,H:nm#'i:?i"'l

treated lumber industry does in 1992.

First. economic conditions will in-

fluence consumer purchasing decisions, including purchases of treated lumber, consequently affecting wholesale orders and inventory levels up the line to the untreated wood supplier and the treating plant. Many economists are predicting a better year in 1992.

Resource Information Svstems. Inc. (RISI) foresees a sub-par liut solid recovery in 1992, continuing through 1994, with GNP growing 2.6Vo in'92 and3.57o in '93. RISI's projection for total 1991 lumber consumption is 43 BBF: for 1992. 49.5 BBF. Treated lumber and timber demand for 1991 is projected at 7 BBF; for 1992 it is projected to increase by about l3Eo to "7.9 BBF.

Story at a Glance

7.9 BBF of treated lumber and timber demand in 1992...consumer safety question must be answered positively...timber supply legislation important for supply...treating in- dustry will take new approaches.

Second, regulatory compliance requirements at the treating plants could have some impact on production and capacity. The U.S. Environmental Protection Agency recently established minimum design and operating standards for drip pads in treating plant process areas. While AWPI and the wood preserving industry have been successful in obtaining additional time to upgrade existing pads and build new pads, the timing is still tight, and the costs are still significant. However, the good news is that most lumber treaters will be up and running in time for the 1992 construction season. Only treating plant wastes are regulated, not

the product or customers.

Third, the timber supply issue is still not resolved. The FOrests and Families Protection Act (H-R. 2463, S. l156) addresses timber sUpply certainty, environmental protection and worker assistance in the WeSt and purports to protect the spotted owl. Resolution could set a precedent for protection of the red-cockaded woodpecker in the South.

The other piece of legislation to watch, with a bearing on timber supply is the Private Property Rights Act, which limits the taking of private property by govemment.

Fourth, public perceptions of treat-

The Merchant Magazine

ed wood products must be understood and addressed. In general, people like treated wood products for many reasons and will continue to use them. But, questions about the chemicals in the wood and the proper handling and disposal of treated lumber must be answered. People want to know, "Is this product safe?" As an industry, we need to answer this question clearly, forcefully and concisely, based on sound science. If we cannot, we will lose market share.

In short, what I see in the future1992 and beyond-for the treated lumber market, is a new way of thinking and a new way of doing business. Thid will be reflected in more sophisticated marketing, a new emphasis on quality, a heightened sensitivity to public perceptions and adaption to chanse.

Deal6rs stronger in ,92

By Gary Donnelly Executive Vice President National Lumber & Buildine Material Dealers Association

Jl unmc the past year the majori- Ytv of lumber and buildins material dealers suffered the pain of a deep recession. While soine areas of the codntry have suffer€d more than others, few escaped unScathed. When the recovery does coule, probably not until mid-1992, we expect the individual dealer to be sffdnger than ever. Sfntrter credit managehent and innovative sales techniquds that help him get by in tough times will pay dividends when we do prlll out of the recesslon.

Don't forget that 1992 is a presidential election year. We have a popular president, who is suffering about a 29Vo rating on his hartdling of domestic policy. It is difficult to imagine that an administration seeiking reelection will not pull out all the stops in order to have a full fledged recovery well underway by the tirde election day rolls around. Watch for White House pressure on bank regulators to loosen their strangle hold on the nation's banks. Also, don't discount the Democrats who conffol the House and Senate and lust for the White House. If they can get their'"act together, and that is never a sure thing, you will see strong congressional effort to jump

start the economy.

President Bush campaigned four years ago promising to be the environmental president. That issue may resurface in '92 as both a virtue and a vice. In our industry environmental concerns are often synonymous with the spotted owl and timber harvesting. We need to be ready to counter any distortions or misinformation likely to surface from the preservationists in the guise ofpolitical correctness. The pendulum has swung too far in favor of the preservationists and 1992 may offer us opportunities to restore sanity and balance to the management of our most abundant and renewable natural resource.

Story at a Glance

Mid-year recovery fueled by election year maneuverings

...disproving preservationists' myths about our industry a must...lumber dealer may be the next endangered species.

On other fronts, in keeping with election year priorities, we will see renewed stimuli to get housing starts up. That welcome relief could come in the form of no-penalty IRA withdrawals for first-time home buyersa notion we have been supporting since it was first introduced by Senator Lloyd Bentsen (D-Tx.) last year.

The other big issue will be health care reform. That monster is not bv

any stretch of the imagination going to be tamed in'92, but you can bet we will witness countless ways to solve what many consider our nation's largest and fastest growing crisis.

My fear is that short-sighted and short-term solutions will be pushed through the Congress by incumbents eager to tell constituents "See what I have done for you." Business could become the source of funding for new programs passed in a frenzy. One thing is certain: health care reform is overdue and will be a major issue in the national political campaigns. We need to be vigilant and prepared to act responsibly to assure that health care solutions do not create another bureaucratic monolith offering little or no relief.

The bottom line for 1992? We could lose the forest management/timber supply issue if we are not effective at the local, state and national levels. Out-numbered and out-financed by the

environmental groups, we will have our hands full in 1992 as we battle to sway public opinion. Too many people know too little about our industry and our role in society, yet they are being led by preservationists who believe our industry is raping the land and wood and wood products are dispensable to our way of life.

Disproving those myths has to be a priority for every one of us. Onerous regulations and bulging budget deficits, as burdensome as they are, pale in comparison with the necessity of maintaining the livelihood of the lumber and building material industry. I want 1992 to be the year in which we make a substantive difference in the way our industry is viewed. It must be the year in which we realize real relief from preservationists seeking to make the lumber dealer the next endangered species. That's the challenge for all of us in '92.

Survival tactics

By Nicholas R. Kent North American Wholesale Lumber Association

lltHAT are lumber wholesalers ff doine in the face of a flat market, decreasid demand and an industry of nervous business people?

In surveying our members, NAWLA found they trimmed operating expenses and inventory and tightened their credit policies. They recognized they are in for the "long haul", and adapted their businesses accordingly. : diversifying, seek-

A time of change

By Jack Shoemaker Executive Vice President National Wood Window & Door Association

EIULDING professionals who will Yfare the best in 1992 will be those who appraise new market conditions realistically. More than ever, the market belongs to those able to assess the new realities and define their niches accordingly.

The old rules do not apply anymore. In years past, a steady decline in interest rates would likely have jolted a sluggish homebuilding market into higher gear. However, even though interest rates will probably remain low until at least mid-1992, no dramatic jump in newhome starts is on the horizon.

Housing unit starts are not likely to exceed 1.25 million in 1992, a tepid improvement over the l99l's l.l million. Consumer confidence, weighed down by an unexpectedly stubborn recession, is entirely "out of synch" with the good news of lower interest rates.

Many builders will find their best opportunities constructing entry-level homes. Largely because of the lack of affordably priced starter homes, first

Story at a Glance

A tepid 1.25 million housing starts in '92...affordably priced starter homes most in demand ...larger homes will use more wood windows and doors... replacement market good... wood outselling aluminum.

time buyers as a percentage of total U.S. homebuyers declined from 48Vo in 1983 to 29Vo in 1989, only in 1990 did a modest reversal (to 34%o)begin. ln 1992 and beyond, demographics will limit builders' ability to focus strictly on trade-up buyers, making it timely to cater to starter home buyers. Affluent baby boomers (born 1946 to 1964) have, for the most part, completed their trade-up moves into second and third homes, allowing the market to revert to more of a starter home focus. More and more, builders are using phrases like "getting back to basics" and "affordable housing" (meaning starter homes of $100,000 to $200,000, depending on pricing in various markets).

The irony: rather than selling over-

(Continued on next Page)

Wholesalers are ing new products, new suppliers and new markets. They are lociking for the niches and specialty prodtlcts that will better help them service customers. They are investigating exports and turning to more remantifacturing activity. Wholesalers are recognizing and responding to their customers' needs for continuity in both quality and service.

Many wholesalers are creating program sales for customefs who believe that long-term relationships will mean better business for eveiyone. At the same time, wholesalers are integrating their suppliers into this chain and looking to them for increased marketing support. New areas of diversification are engineered wood products and products that respond to,the uptum in remodeling and renovation.

While it is tempting to look for that one thing that is going to jump-start our economy, we must continue to keep our businesses viable, remembering there are no problemsjust oppo(unities. We must continue to educate ourselves and maintain open minds and open channels of communication. Primary producers and wholesalers must work to find the most efficient and economical ways to get products to the customer.

Story at a Glance

Wholesalers seek market niches and specialty products...will provide special programs for customers... survival depends on creating opportunities.

A time of change

(Continued from previous page)

whelmingly to post boom (under 30) occupants, starter homes will often be bought by aging Baby Boomers. True, under-30 renters are the logical people to graduate to homeowning; however, they are being held at bay by recessionary anxieties. Moreover, as a percentage of the total U.S. population, persons under 30 are the fastest declining segment. Prime buyers for starter homes are the estimated 42 mlllion boomers (out of a total of 82 million) who do not own their own homes and would dearly love to.

Where the use of wood windows and doors is concemed, there is cause for cautious optimism. Here's why:

(l) Even though starts of single-fami- ly detached (SFD) homes are down dramatically (to 900,000 in 1990) from their mid-S0s level (1.2 million in 1986), the average size of a SFD has risen to at least 2,100 sq. ft. and, according to some observers, could well be

closer to 2,300. More square footage means more wood windows and doors per home.

(2) Would-be trade-up buyers, forced to stay put.because of the recession, are prime candidates for remodeling. At present, it is estimated that replacement windows (all types) used in residential remodeling totalled $9.8 billion in 1989; replacement entry doors (all types), $700 million.

(3) Wood windows continue to gain market share at the expense of-aluminum. According to NWWDA 1992 should yield sales (remodeling and new construction combined) of over 20 million wood windows, an increase of between 500,000 and I million units over 1991. Aluminum windows are likely to drop about the same amount from their 1991 total of over l3 million.

For all of these reasons, we are cautiously optimistic. Builders who pick their niches carefully can, indeed, prosper in 1992 and, in the process, enhance their consumer appeal by using wood windows and doors.

Modest recovery

By Ernest J. Stebbins Executive Manaser National Hardwood Lumber Association

llt E HAVE turned the comer on II the recession with 1992 giving all the indications of a modest recovery taking place. Continued low interest rates will encourage home building and improve the lumber market.

Single-family construction will probably out perform multi-family starts, which will benefit the hardwood market. Hardwood floors, paneling and kitchen cabinetry are an important part of single family construction, particularly in the high end market. In addition, the two most often remodeled rooms, the bathroom and the kitchen, present tremendous hardwood opportunities.

If inflation continues to remain stable, election year politics may very well keep interest rates low, finally producing an uptum in consumer confidence. Lower mortgage rates would

also benefit the home resale market.

Politics will have a great deal to do with how far we go in 1992. It's a presidential election year and many have already given the victory to the Republican incumbent, Mr. Bush. Many concede that there are reasons why he looks good-a military victory in the Mideast, which secured oil supplies for the west; the fall of Communism, not only in eastern Europe, but in the Soviet Union as well; the easing of global military tensions and prospect of reduced government spending on the military. What Mr. Bush wants to do with the perceived "savings" will become the big question. I do not expect him to reveal any surprises in his spending plans next year, so I'll predict a mild recovery with the general excitement of the presidential campaign carrying his administration successfully through the November election and on to 1993.

Where will we find the wood oroducts to put into the homes being'built during the recovery next year? With national forest timber sales tied up in a gridlock of administrative appeals, lawsuits and endangered species regulations, and 50Vo of our softwood timber growing on federal lands, the material to build them might not be there.

Timber supply problems do not stop at the national forest boundaries. Private landowners are now findins out that endangered species regulalions and wetland regulations apply to them too.

Story at a Glance

Single family construction will outperform multis, using more hardwood...presidential election will promote recovery...lack of lumber a problem ...Wise Use Movement scoring against preservationists.

The encouraging thing is we are finally doing something about it. The Wise Use Movement or Multiple Use Movement, a grass-roots network of people across the country whose livelihoods depend upon wise management of our natural resources, are beginning to outnumber environmentalists at some public hearings. The environmentalists are taking note of this "broad new protest with an amazing array of people" and a "sophisticated approach." Think what could happen in 1992 if they became as sophisticated as the Wilderness Society has been for all these years.

Little to smile about

By Eric Yeadon President American Wood Preservers Bureau

HIS has proven to be another disappointing year for the wood preserving industry.

Provisional fisures indicate a reduction in the treatment of lumber and timbers of l.85Vo as of the end of September. Current reports from plants in all regions indicate further declines before the end of the year. Special products such as plywood,foundation lumber and plywood, piling, etc. show an even more drastic decline (l5%o for foundation material and 29Vo for plywood).

Gradual structural panel rlecovery

By William T. Robison President American Plywood Association

f, venn ago, I expressed the hope

Fthat the anticipated structural panel market decline in l99l would be slightjust a bump in the road followed by a quick return to better times.

pates U.S. structural panel production of 24.3 billion square feet, 3/S-inch basis, in l99lan 8Vo reduction from 1990. This is more than 2 billion feet below our original estimate.

Will 1992 signal an end to recession? Or will the present "double dip recession" become "triple dip?" Our APA market research department has the benefit of extensive input from our field staff across the country, and I'm happy to report enough positive indications from the marketplace to be cautiously optimistic about 1992.

momentum, led by the materials handling, transportation and furniture sectors.

Other positive factors assisting the overall brighter 1992 total market outlook include an expected surge in residential and nonresidential repair and remodeling, and recovery of the export market from l99l lower levels associated with the Gulf War.

industrv. It's been a

611", ioaster riqe. First, the threat of a Gulf War, then the trauma of the war itself. the short euphoria that came with the victory, followed by the realization that the world has deeper problems which impede prosperity.

As we approach the end of a turbulent year for the wood products industry, and all involved in the supply chain, it is clear that for panel producers, 1991 will go into the record books as a year most producers would like to forget. A new APA forecast antici-

While signs of economic revival have been apparent recently in some market sectors, it is our strong feeling that recovery will be gradual. With allowance for 1992 being an election year, we don't believe the federal government can afford to significantly relax its anti-inflation policies.

Other factors that will slow the recovery are off-pace state and local economies; overbuilding in multifamily and nonresidential construction; and continued consumer wariness reflected in an unwillingness to commit to major spending.

Our APA forecast predicts 1.15 million total U.S. housing starts in 1992, up from about one million in 1991. The industrial market also has

Exports climbed from only 300 million square feet in 1985 to 1.7 billion in 1990. I have no doubt that the long-term prospects for even more dramatic international market growth are excellent. The same applies to the domestic market, where markets like I-beams (today requiring 300 million square feet of structural panels) have the potential to reach half a billion feet by the end of the decade. APA estimates that U.S. structural panel production will rise to 26.5 billion square feet in 1992, a 97o improvement over the level expected in 1991.

Story at a Glance

APA optimistic...1.1 5 million housing starts; 26.5 billion sq. ft. structural panel production ...increased exports... preservationist activity is a major challenge.

New products such as water repellant treatment and the added value components for decks such as posts were predicted to stimulate the market, but, although these products have sold, no noticeable increase in total volumes have resulted.

Regional reports indicate the housing slump has caught up with all areas and, although the amounts of treated wood involved in a new structure are low, (plate stock, etc.) the material

Story at a Glance

No relief for pressure treating ...repair and remodeling optimistic...stricter environmental controls will reduce the number of plants...election

used on new decks is also lost. Restrictions in government spending have affected school building and temporary classroom additions. Also, redwood and cedar may have taken some treated business. Texas has had indications of a better year but with little long-term confidence.

The outlook for 1992 is somewhat gloomy despite hopes for a pickup in housing starts. Comments indicating that the market has bottomed out may be more indicative of wishful thinking than improving order books. Winter buying programs although not significant do exist; but the only optimism is in the repair and remodeling sector.

Stricter environmental controls on the treating plants are bound to put more plants out of business in 1992, but the excess capacity in the industry will ensure that there are no windfalls for current producers.

Look for another flat year unless election fever and campaign promises stimulate an otherwise dull outlook.

A major challenge facing the wood products industry, particularly in the Pacific Northwest, is the preservationist-inspired rationing of an abundant timber supply. Environmental extremists have served notice that their ultimate goal is crippling the wood industry in all parts of the country. However, I believe that we can be successful in teaching the public that we can have a stable wood supply in harmony with the environment. The current anti-timber policies influenced by fear and misrepresentation must be decisively rejected.

More Forecasts

Pages 26,27,28

F;;; fi'u'.u.' ir'ut

I've worked with

and the panel

fever may bring relief to a dull outlook.

However, the past 12 months have been the wildest period in

NEWS BRIEFS

HomeClub, Inc. will open 103,904 sq. ft. stores with outside nurseries in Bellingham, Lacey and Silverdale, Wa., this spring... Meek's Building Center is opening a new location with a 6 acre lumber yard, 16,000 sq. ft. showroom, 15,000 sq. ft. drive-through warehouse and a drive-up window in Redding, Ca., using a former Grossman's Lumber & Building Materials store they remodeled...

California Hardware had a grand opening and ribbon cutting for a Century Store of Tbmorcow in Las Vegas, Nv....Murry Hilty, owner of Analv True Value Hardware, Sebastopoll'94.';',will open Analy True Value Hame Center this month in a former D:iamond htmber on Depot St....

Home Depot set Feb. 1993 as the opening for its first store in Seattle, Wa.; closed a Phoenix, Az., unit until spring for remodeling,..Eagle Hardware plans to open its sixth store in Rainier Val'ley (Seattle), Wa. ...ThompsonDiggs Co., Sacramento, Ca., closed only its hardlines distribution business, not the entire company as reported earlier...

D & B Building Materials, San Jose, Ca., is conducting a goingout-of-business sale this month in preparation for closing at the end of the month...

The Lane Co., is a new domestic and overseas marketing and sales consultant firm established in Portland, Or., by Terry Lane, forlnerly with North Pacific Lumber Co....Columbia Forest Products Inc., Pofiland, Or., acquired a hard:wood veneer plant in New Freedom, Pa., from Weyerhaeuser Co....

Caffall Bros. Forest Products Inc., Wilsonville, 0r., will handle sales for Sierra Cedar Products, Marysville. Ca., when its incense cedar fencing mill is completed, probably in early Jan....

Plateau Forest Products, Albuquerque, N.M., is moving to Bend, Or., in Jan....Silvan Inc. has moved from Santa Cruz, Ca., to larger facilities in Watsonville, Ca., and expanded into redwood and teak ouidoor furniture lines,...

Cal State Forest Productgha*,, moved from Anaheim, Ca,, to ne*; larger offices, warehouse a!-diy at 630 Freedom Ave. in Orang.e,, Ca. ...Noble Lumber Co. k a new Orange, Ca., wholesaler specializing in redwood and cedar: Phil Heim, founder.;.

Disdero Lumber Co., Portland, Or., expects to acquire the Seattle, Wa, West Waterway Lumber Co.'s name and Hardwoods Division this month to operate as a division under the management of Randy Whiteman...

Mission Hardwood Co., Scottsdale, Az., moved to newly designed offices, showroom and warehouse.. .Trus-Joist Mac Mil lan set up offices in Plymoun, Mnrt,,,'.,.'.'

Arizona Pacific Wood Presi|fu-, ing, Inc., Vacaville, Ca., filed chapter 1l bankruptcy as did sister company Pacific Woad Preserving of Bakersfield, (Ca-)...Judith Gap Forest Products, Judith Gap, Mt., has gone out of business...

Forest Grove Lumbet McMinnville, Or., has been formed by Jack Burnard, Al Martindale and private investors who purchased

the equipment and inveniory of Taylor lnmber's reman div., Forest Grove, Or....

, :-'i il II il

', r,,,,:, .,, .,:,.f;d.u fs ia n a - P a c ific clo sed its Samoa, Ca., pulp mill for the first time in memory, idling 183 employees, until at least the first part of the year; the L-P redwood sawmill at Samoa was not affected...

Snavely Forest Products will close its 6ntario, Ca.. operation at the end of the year...Timberline Sales, Orange, Ca., has ceased op eration...

,,',:fhe 'U.S. Departrnent of Commerce gave $500,000 to the American Building Products Export/Import Council to organize the Consortium of American Housing Industries in Eastern Europe to help U.S. manufacturers of housing and building products find export oppoftunities in that region; offices will be opsned-in Warsaw and Budapest to liuild showhouses, organize trade shows and missions...

The Stanley Works is combining opqStion of its Home Automntion, Electronics and Door Sysrens divi,iions in the U.S. and Canada into a rbingle business, Stanley Door Sys':t,erns Div ision... Boise Cascade, Boise, Id., received a certificate of appreciation from the EPA for its commitment to reducing emissions..

New housing starts rose 7.4Vo in October (latest figs.), to the highest level since Nov. 1990, a seasonally adjusted annual rate of 1,096,000...multi starts leaped 26.17o; single family, 3.9Va; building permits,5.47o.

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MANUFACTURERS & WHOLESALERS

CALENDAR

DECEMBER

Los Angeles Hardwood Lumberman's ClubDec. 14, Christmas party, [a Vente [nn, Palos Verdes, Ca.

North Cascade Hoo-Hoo ClubDec. 17, Christmas party, Everett Golf & Country Club, Everett, Wa.

Tacoma-Olympia Hoo-Hoo ClubDec. 17, Ladies Night, Tacoma, Wa.

Portland Wholesale Lumber AssociationDec. 20, annual Christmas luncheon, Red Lion Inn-Lloyd Center, Portland, Or.

Coast Counties Hoo-Hoo ClubDec. 23, Santa Claus giveaway. Salinas. Ca.

JANUARY

Coast to Coast -- Jan. 5-8, market, Moscone Center, San Francisco. Ca.

Western Wood Products AssociationJan. 6, district meer ings, Portland, Or.; Coeur d'Alene, Id.; Jan. 7, Bend, Or.; Eugene, Or.; Jan. 8, Sacramento, Ca.; Jan. 9, Scottsdale, Az.

Mountrin States Lumber & Building Material Dealers AssociationJan G10, lumber estimating class, Phoenix, Az.

Tacoma-Olympia Hoo-Hoo ClubJan. 7, general meeting/ Sports Night, Diamond Jims, Tacoma, Wa.

Cotter & Co.Jan. 11-13, winter lumber conference, Sheraton Harbor Island Resort, San Diego, Ca.

National Housewares Manufacturers AssociationJan 1215, annual expo, McCormick Place, Chicago, Il.

Mountain States Lumber & Building Material Dealers Assoc! ationJan. 13-1E, lumber estimating class, Executive Tower Inn, Denver, Co.

Seattle Hoo-Hoo Club- Jan. 13 (and next 6 Mondays), lumber grading school, University of Washington, Seattle, Wa.

Coast Counties Hoo-Hoo ClubJan. 16, initiation meeting, Monterey, Ca.

Spokane Hoo-Hoo ClubJan. 16, initiation, Past Presidents & Club Night, Spokane, Wa.

Inland Empire Hoo-Hoo ClubJan. 17, initiation/golf tournament, Indian Hills Golf Club. Riverside. Ca.

North Cascade Hoo-Hoo ClubJan. 19, beer & crab feed, Mt. Vernon Elks, Mt. Vernon, Wa.

Sacramento Hoo-Hoo ClubJan. 20, initiation meeting, Tuesday Club, Sacramento, Ca.

Shasta Cascade Hoo-Hoo ClubJan. 21, initiation meeting, Oakland, Ca.

Oakland Hoo-Hoo ClubJan. 21, initiation meeting, Oakland, Ca.

Black Bart Hoo-Hoo ClubJan,22,Industry Night, Broiler Steak House, Ukiah, Ca.

Humboldt Hoo-Hoo ClubJan.23, annual crab feed, Eureka Inn, Eureka, Ca.

National Association of Home BuildersJan. 24-27, annual convention & exposition, Las Vegas Convention Center, Las Vegas, Nv.

Mountain States Hardware & Implement AssociationJan. 4-26, anwal convention, Regency, Denver, Co.

Western Building Material AssociationJan. 30-Feb. 2, Young Westerners Club conference, La Quinta Inn, Tacoma, Wa.

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P&M Buys Osage Operation

P&M Consumer Products, Stockton, Ca., has acquired the aromatic cedar closet lining division of Osage Products Co., Eldon. Mo.

Manufacturing and equipment will be relocated to the Hot Springs, Ar., plant where P&M's CedarPro brand of closet lining is manufactured. With the addition of 42" and 32" closet lining products to its existing brands, P&M Consumer Products becomes the nation's leading manufacturer of aromatic cedar closet lining, general manager Charles Berolzheimer said.

Osage will continue its cedar-shaving pet bedding and turkey litter operations, two O.P. Hardwoods retail doit-yourself center units and sawmill facilities in Flippin, Ar.

Fountain Lumber Co. Changes

The Ed Fountain Lumber Co., Los Angeles, Ca.. is stepping back from the role it has played as a major area wholesaler since 1937. Its sister company, Fountain Industrial Lumber, is being similarly downsized.

With the retirement of founder Ed

Fountain, 88, "we felt a number of business factors indicated a change in company size," said Ed Fountain, Jr., president. He cited dwindling lumber supply, an unfavorable labor contract, changes in the cedar market, shifts in architectural styles and the increasing burden of govemment regulations.

"We're not liquidating the company," Fountain said, noting that future plans depend upon conditions after the downsizing is complete.

Al Bell Study Grants

The Forest History Society has announced the availability of Alfred D. Bell, Jr. travel grants for 1992. Those wishing to study at the society's library and archives may receive up to $750 in support of travel and lodging expenses. Seven Bell grants were awarded during 199 l. For information, write Bell Travel Grants, Forest History Society, T0lVickers Ave., Durham, N.C. 27701 or call (919) 682-93t9.

The late A. D. Bell, Jr. was the coowner and publisher of The Merchant Magazine. The Forest History Society

The Merchant Magazine

is a nonprofit educational institution affiliated with Duke Universitv.

Mild recovery

(Continued from page 10)

pick up as we move through 1992. However, the expansion pace will be less than during the first year of other postwar uptums. (If the economy falters in late l99l or early 1992, expect some kind of tax cut and additional Fed easing in an effort to boost activity and preserve incumbency.)

Washington and Oregon are likely to experience more robust performance in 1992 with employment growth moving back to the 2-2.5Vo range and a housing activity rebound. There are signs of residential permits responding to declines in interest rates and continuing population growth in excess of the national averase. Idaho is likely to have another year*with employment growth near 3Vo.

The upturn will be restrained in the Northwestt milder downturns are followed by milder recoveries. All three states should have another year of population growth at least one and one half times greater than the national average.

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

where wood is pressure treated (foreground) are 6' in diameter, 80 lono. Plant has zero discharge permit, indicatin-g company meets all government regulations

and has no air, water or qround emissions. Plant recycles 100% of alf chemical and water used in the wood treatment,

Thunderbolt Opens Chemonite Facility

Celebrating its fifteenth year of CCA wood preserving, Thunderbolt Wood Treating Co., Riverbank, Ca., has expanded its capabiliries with the recent addition of a Chemonite wood treating facility.

While Douglas fir is perhaps the best structural wood, it is among the species most difficult to treat. Thunderbolt' s new two-cylinder Chemonite facility allows Douglas fir to be treated to proper penetration and retention standards as set forth by the American Wood Preservers Bureau.

Chemonite was developed in the 1920s specifically for Douglas fir and other difficult-to-treat western softwoods. Douglas fir, green or dry, cannot be adequately protected with any other waterborne preservative, Thunderbolt says.

Numerous research reports and technical papers have charted the chemical's superior performance against decay organisms, termites and marine borers. Douglas fir wharf timbers installed in the 1930s are still performing well.

Thunderbolt Wood Treating Co. also has three 80-ft. cylinders for CCA wood treatment at its 14 acre plant.

Period.

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Better but no boom

By William B. Conerly, Ph.D. Vice President and Economist First Interstate Bank of Oreeon

IEOOD enough to make a profit, Ybut not good enough to bail anyone out from stupid mistakes. That is First Interstate's evaluation of the 1992 economy. Both consumer and business spending will be better, but no boom is in sieht.

The recessio-n is over, an observation that most of my fellow economists agree with, although most business manasers dis-

agree. This is not just another example of economists getting no respect. If we locus on changesare things improving or worseningthe economy is clearly improving. If we focus on levelsare sales high or are they lowthings look pretty bad. The economy has not regained all of the ground lost in the recession, but it is risine. Recovery is anemic. It is not sJtting

any records, and we anticipate it will show growth rates less than half of those usually coming out of recessions. Consumer spending will increase next year. However, due to concerns about debt levels, look for it to increase just in pace with incomes, about 3Va plus inflation.

Homebuilding will look much better next year, but almost anything short of disaster would look better than 1991. We have a shot at 1.3 million starts next year, but credit availability for developers will be a limiting factor.

The so-called credit crunch is really a reversion to the rules of the 1950i and 1960s. The country can enjoy a healthy construction industry without lots of credit, as we did in the past, but the transition from highly leveraged deals to more conservative financins is causing great difficulty.

Repair and remodeling is bucking the trend somewhat, especially in growing regions, such as the Pacific Northwest. The rest of the country may see the trend next year, as demand for more or improved space grows faster than credit availability.

Inflation is likely to move even lower next year, around 3.5Vo on the Consumer Price Index. The Federal Reserve is very serious about this, so our forecast is likely to be more pessimistic than optimistic.

Lumber prices will show some strength. Part of the gain will come from increased demand, part from reduced timber availability.

Story at a Glance

Anemic recovery... increased spending, lower inflation, 17o interest rate increase... stronger lumber prices...1.3 million housing starts if credit allows.

Interest rates are at the bottom now. Look for abolt l%o increase in shortterm rates next year, but only little gain in long-term rates.

1992, an election year, could have a slogan of its own, one that sounds very much like a political campaign: "Not great, but better than some others we've seen."

Shortages ahead

By Ric Morrison Incoming President* Wood Moulding & Millwork Producers Association

AnP we crying "wolf' again? No, Il don'r think so! Expect shortages of western softwoods in the first quarter of 1992.

The preservationists are having success in tying up timber harvests and many western sawmills are closing or reducing production due to a lack of timber. These twin problems bode ill for a normal availability.

Most of us are aware of the court battles and reduced timber for sale, but the number of permanent plant closures and reductions are not quite as publicly heralded. As closely as our people have been able to determine, approximately 35Vo to 45Vo of the pine lumber has been pulled out of production due to short falls in harvesting and other market conditions.

Most remanufacturing operations have inventories at capacity to protect

against shortages or delayed deliveries. Historically, demand slows down by November and picks up sometime in February or March. This means many distributors will be lulled into thinking there is plenty of supply when there is only a thin buffer of inventory. These factors create the environment for an artificial or "psychological" market of runaway prices and then a big downturn. This time we do not expect the big drop off afterward.

Most mills are cutting pine logs now due to the poor market on fir dimension. Log decks could dwindle further by February when stormy weather can keep the crews out of the woods. Because demand is down now and inventories are fairly strong, I don't expect fir or pine prices to go up too dramatically until late January or mid-February. If demand picks up in late January just as inventories are running lower at the reman and sawmill levels, there could be significant price increases: 25Vo to 40Vo doesn't seem impossible.

Large wood window companies capable of making block purchases of pine shop without affecting the cost of their window to the same degree as other products will also contribute to the puzzle. Watch for first quarter commitments from this segment of the industry to throw us a curve.

Story at a Glance

Preservation ist-blocked ti mber harvests and closed sawmills cut into softwood availability...thin inventories may cause significant Price increases...close supplier relationship and use of alternate species can keep availability and price in line.

What can you do to protect your source of supply? Align yourself with quality suppliers who have sufficient volume to get the job done. Buy from suppliers that can provide a wider mix of your needs rather than depending on a supplier forjust one product line. Work with your suppliers to set up programs and commit to deliveries over a longer period of time. Work with your suppliers to investigate alternate species to keep availability and price in line.

*The opinions expressed here are those of Morrison and not necessarily those of the entire WMMPA membership.

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Stoc^ eurET, oALL BAcK FREE ENGINEERED LUMBER PRODUCTS THAT ELIMINATE SQUEAKS. WARP. WANE AND WASTE.

BCI Jorsr r-BEAMS,wHrcH MAKE RESIDENTIAL FRAMING FAST AND COST EFFECTIVE. THEY ARE LIGHTER. STIFFER AND OUIETER THAN DIMENSION LUMBER. FLANGES'I-3/4'& 2-5116"; DEPTHS g-112'to 20". ALL

Slow but steady

By George A. MacConnell Senior Vice President, Distribution and Specialty Operations Georgia-Pacifi c Corporation

T Hg BEST phrase to describe the I building products industry outlook for 1992 may be "slow but steady," particularly after the roller coaster ride

we took in 1991. With uncertainty on commodity prices and the downtum in housing starts in the first quarter this year, our industry braced itself for the worst. Fortunately, that first quarter was the bottom and the following quarters saw modest increases in new housing and renewed remodeling activity.

We're still on that slow. steadv climb back, and we're not anticipatin! any significant drops in the near fu-

ture. With an expected gradual recovery in housing starts predicted for 1992, perhaps to a level of 1.2 million, retailers can see some relief in sight. Consumer confidence to undertake major remodeling activities is up as well. With today's "buyer's market" in real estate. homeowners needto make their aging homes attractive to increasingly finicky house shoppers. This bodes well for both d-i-y and remodeler-oriented yards and home centers.

How can a retailer succeed in the slow, steady climb in '92? By getting suppliers directly involved in his business as a key partner. Retailers should challenge their best suppliers to help solve their business problemsto come up with ideas that will increase sales and profits. This, however, cannot be a one-way street. Retailers and their employees must be willing to work hard and be open with suppliers. They can'tjust put key vendors under the microscope, but must scrutinize their sense of partnership with each other.

Here are some partnership keystones to work on in'92:.

. Is communication a two-way street? Are needs and demands addressed? Are you familiar with the services your supplier offers?

'Does your supplier have control over resources from which products are made? Is his supply dependable and timely?

' Look at how electronic technology is changing the way we do business. EDI and UPC are fast becoming part of the building products landscape. Can your supplier be a part of the new technology?

. Retailers are looking at manufacturers and suppliers to help sell products better and faster. In-store merchandising programs, displays and product training are providing retailers with differential advantages. What can your supplier offer?

' More and more suppliers are being called in to develop and manage complete programs for specific product categories.

o Just-in-time delivery programs help control inventory costs for retailers. Can your supplier deliver when you need it and in the quantities you need?

PERSONALS

Art Gutzeit has joined the sales staff ar River City Moulding, Sacramento, Ca.

Bruce G. Moore is now v.p. of Columbia Forest Products, Portland, Or., reports pres. Andrew Honzel.

Ron Adkins is new to Oregon-Canadian Forest Products, North Plains, Or., as mktg. mgr.

G. P. *Pat'Hanna has been promoted to exec. v.p. at Crown Pacific, Ltd., Portland, Or.

Rose Mary Bennett has rejoined Bald Knob Land & Timber, Creswell, Or., as mktg. director.

Dan Green is now with Snow Peak Forest Products, Coeur d'Alene, Id.

Roy Crow is new to Frank Lumber, Mill City, Or.

Dave Hartznl is new to We,st Shore Industries, Lake Oswego, Or.

Sanford "Sandy" Raab is the new v.p. and gen. mgr. of Castaic Brick, Castaic, Ca., reports pres. Mike Malow.

Tapani Pekkala has joined Oregon Forest Products, Gladstone, Or., as v.p.-exports.

David D. Leland, Plum Creek Timber Co., Seattle, Wa., has been elected chairman of the National Forest products Association, succeeding Dan M. Dutton, Stimson Lumber Co., portland, Or. Dana G. Fitzpatrick lst vice chairman, and David W. Oskin, 2nd vice chairman and treas.

Nancy Boulware Jaenicke, recently feted for her 25 years with Weyerhaeuser Co., Tacoma, Wa., has been named director of quality for the corporate employee relations group.

Tracey Hyland is a new outside salesman for Sequoia Supply, Fairfield, Ca., covering Sacramento south to Fresno, Ca., according to Bob Riggs. Bill Simpson is representing Sacramento north to Redding, Ca., including Reno and Carson Citv. Nv.

Paul Ward, Ward Forest Products. Morgan Hill, Ca., and his.wife, Anne, spent three weeks touring Europe, including seeing son Ron in Frankfurt and son Robert in Paris.

David W. Kaney, Simpson Timber Co., Arcata, Ca., has been elected chairman of the board of the Califomia Redwood Association. Joseph W. Wheeler Jr., Louisiana-Pacific, Samoa, Ca., is chairman-elect.

Keith A. Morgan is new to Walton Tool Co., Long Beach, Ca., as sales mgr., reports pres. Arthur Walton.

Edward A. Wolfe is new to Home Depot as v.p.-loss prevention.

Dick Corkum has joined Boise Cascade, engineered wood products div., White City, Or.

Bob Dacey has rejoined the sales force at Industrial Forest Products, Chino, Ca., reports Phil Butterfield.

Bill Jones, Pacific Lumber Co.. Costa Mesa, Ca., married Lauren Calaby Nov. 23, 1991, in Corona del Mar, Ca.

Michael D. Weaver has been named v.p.finance for Kwikset, Anaheim, Ca., reports F. Peter Cuneo.

John A. Stockhausen has been elected v.p. and c.f.o. at Snavely Forest Products, according to pres. Stephen V. Snavely.

Thomas Dittrick has been promoted to v.p.-c.f.o. and treas. at Sunrise Build 'N' Grow, San Carlos, Ca. John Garagliano is now controller.

Expetienced qccounlqnls who know heir businessqnd yours!

For 35 yeors we've provided the forest products ond building moteriols industry wifh occounting fox ond consulting services emphosizing procticol solufions We understond fhe intricocies of the retoiler, wholesolel, mill, moulding plont treofing plont ond fruss monufocturer.

We otfer ouditing; reviewed ond compiled finonciol stotemenfs; tox plonning ond ond preporotion; monogement ond compuler consulting ond ossistonce in obfoining

Shlrley Kisner has joined Rain Bird, Glendora, Ca., as mktg. & ptoduct coordinator,

Doreen Kuhlmann has retired after 15 years with Capital Lumber Co., Chino, Ca., moving with her husband to Missouri, reports Mark Lofland, gen. mgr.

Johnny Diaz has been promoted to plant mgr. of Idaho Timber Corp.'s Weiser, Id., facility. Karl Dye, Cliff Self and Gunay Gul have moved from plant production into sales. Tim Bradley and Shannon Terrell are new to the Boise, Id., sales group.

Elmer Lewis has retired after 15 years with All-Coast Forest Products, Grass Valley, Ca., according to pres. Daryl Bond. He began in the lumber business in 1937 and spent many years with the old Inland Lumber Co., Colton, Ca.

Tom Farrell has joined Builders Discount, North Hollywood, Ca., as merchandise mgr.

Hal Huff, PrimeSource, Inc., Portland, Or., married Marlena Conard Oct. 12, 1991.

Jay Gregg is now lumber div. mgr. for Greenwood International. Portland, Or.

Emerson Schenck is new to GeorgiaPacific's North Highlands, Ca., DC.

Gene Walters, Willamette Industries, Albany, 0r., and Mark Elston, Willamette, Dallas, Or., and Gordon Scott. Scott Lumber, Portland. Or., are back from a Hawaiian business trip.

Paul W. Hylbert, PrimeSource, Inc., Irvine, Ca., has been named pres.-elect of the National Building Material Distributors Association.

Gerard K. Drummond was named to the board of Willamette Industries, Portland, Or., replacing retiring Ronald T. Miller.

Carl A. Liliequist has been named v.p./gen. mgr. of PGL Building Products, Auburn, Wa., succeeding Jim Ben Edens, now pres. of parent Huttig Sash & Door.

Ken Edwards and Martie Thomas have joined the sales force of Forest Grove Lumber. McMinnville. Or.

Verne Baskett, commodity purchasing mgr., Boise Cascade, Boise, Id., retires at year's end after 38 years with the firm.

George Hammann, J.M. Thomas Forest Products, Rocklin, Ca., and his wife, Kristy, are the proud parents of Samantha Susan Rose. born June 5, 1991.

Ben Papa is new to Buckeye Pacific, Portland, Or.

Vaughn Pipes has been promoted to mktg. director at Palmer G. Lewis Co., Auburn, Wa.

Doug Crandall, mgr., Brand S. Lumber, Livingston, Mt., traveled to Japan in late November as a delegate to the first U.S.-Japan Grassroots Summit, attending the convention and visiting Japanese customers.

Carver Rupp is new to the wood crafts dept. at Mungus-Fungus Forest Products, Climax, Nv., rePort owners Hugh Mungus and Freddy Fungus.

HAPPY HOLIDAYS

MTI{RY CHRI$IMAS

Irl the yearzo3z,wel

fugs arotrnd the col

fillbeffiiry

Our clients tell us we do things right. When they order from Willamette, they don't have to worry about late deliveries, poor quality, or any of the other problems they've experienced with the competition.

Thafs because our salespeople are more than just order takers. At least once a week, they visit the mill in person. Check on orders. And gain

firsfhand knowledge about what they can and can't promise.

Of course, having more than a million acres of forest helps ensure a reliable source of supply. And because we replant more than 16.7 million trees annually as part of our forest management practices, it's a supply thatwill remain reliable.

So whether it's next year, or into the next century, Willamette will continue running rings around the competition.

Lumber & Plywood Division

Western Sales Office Albany, OR (503) 92G7771

Southern Sales Office Ruston, t C (318) 25U6258

Atlantic Sales Office Rock Hill, SC (803) 32s3U4

IUSTOM ORDTHN

Quick Quotes for 1992

"The real issue is not interest rates as much as it is debt. We are de-leveraging this economy. In that environment, cutting interest rates has hardly any impact, because people have too much debt and they are cutting that debt, not bonowing more."

Lawrence Chimerine Senior Economic Counselor

DRVMcGraw-Hill

"...the days in which companies would borrow to rebuild inventories are pretty much gone. "

Norman Robertson Chief Economist

Mellon Bank

"It's an election year, and historically, election years are pretty good for the housing industry."

Terence Williams Executive Vice President GMAC Mortgage

Corp.

"Some states are still in a recession-California is one of them. But I think we're coming out of it right now."

Arthur

J. Shaw

Chief Economist

Los Angeles Area Chamber of Commerce

"'93 looks good."

Han Veltkamp

ACCORDION DOON

Chairman Resource Information Systems, Inc.

..I/VS?{,ryT

WALLS WHEI] IUEEDED"

lAccordion doors desiened for use where performance is importint for HOTVIES . OFFICES . CI{UR CHES .

RESTAA RAIV?S . INDUS?RY

lCustom-sized room dividers shipwithin a two weeh production cycle from the factory I Accordion doors custom sized to your customer requirements

Custom orders n'Lean profitable return on inuestmentno inuentory!

"We expect the beginning of a moderate recovery by year end. Due to everyone's uncertainty, we expect lumber markets to react wildly to increases in actual demand."

Mack Singleton

President

New South, Inc. Conway, S.C.

"...a possible double-dip recession before the economy gains momentum in the spring."

David Seiders

Chief Economist

National Association of Home Builders

"(Home) buyers will wait until interest rates fall further."

Lynn Michaelis Chief Economist Weyerhaeuser

"We're only going to get this thing once. It's important that we do it right (dealing with the economy)."

Senator Phil Gramm R-Texas

"Buyers are hovering right now. But there's no need to strike yet."

Darlene McTaggart Windermere Real Estate Seattle. Wa.

INTERNATIONAL FOREST PRODUCTSt"o.

suPPort r{oo -Y[oo's l-ootfL

Next year the International Order of Hoo'Hoo, the fratemal order of the forest products industry, will celebrate our 100 year anniversary. Planned are a centennial convention in September, preceded by a commemorative issue of "Log & Tally" in May.

1892 -:,1992

Supporters of our industry can be represented in this special edition, to be distributed to 7,000 forest producis professionals, including loggers, manufacturers, wholesalers, retailers and transportation firms. All the while, you'll be supporting the oldest industrial fraternal organization in the country and our industry in general.

Corporate Sponsorship ($5,000) A l12page ad in centennial issue, recognition in preceding newsletters and "Log & Tallys," 2 prepaid registrations, hotel room for 2 tor 4 nights, daily program listing, banner displayed at hotel throughout convention.

Contrlbuting Sponsorship ($3,000) A 1/3 page ad in centennial issue, recognition in preceding newsletters and "Log & Tallys," 2 prepaid registrations, hotel room tor 2 tor 4 nights, daily program listing, banner displayed in meeting rooms.

Centennial Sponsorshlp ($1,000) A 1/4 page ad in centennial issue, recognition in preceding "Log & Tallys," 2 prepaid registrations.

Indivldual Sponsorship ($200) Business card size ad in centennial issue.

Contact AL MEIER, fund raising co-chairman, (206) 922-5066 3700 Pacific Hwy. E., Ste. 409, Tacoma, WA 98424 FAX206-922-7451

Does your customer service stack up?

cUSTOMER service is the most important function of your busi-

ness.

Regardless of the product or service you sell, your ability to produce satisfied customers enables your company to prosper.

Customer service builds loyalty and earns the kind of quality reputation envied by competitors. Outstanding customer service can be mastered with the proper attitude and by focusing on the daily contacts with your

A Gustomer Has A Right To:

courtcous, considerate treatnlcnt at all times.

have expectations that quality, price and dclivery will be as rcprescntcd prior to the purchasc.

. be servcd by skillcd, knowlcdgeablc pcrsonnel dedicatcd to his best interesls.

bc promptly and fully informe<J whcn the seller's comnritmcnl cannot bc met. to cornplain and receivc prornpt, fair handling and resolution of thc cornplaint.

cxfrcct cxtra cl'lbrt in crncrgcrrcics. never hcar "That's not tny dcpartmcnt." expect appreciation lbr present, past and f'uturc busincss.

Councsy of Michigun Rcail Hunlware Asyx.iutittr.

customers.

An attitude of appreciation for your customers makes acquiring the habits of effective customer service a pleasure. In all areas of your business, it helps to remember that "to serve" is the true definition of customer service.

Here are some suggestions from Roger M. Hunsberger, ASR Industries, that will have enorrnous impact upon the people with whom you deal:

Courtesy: a cordial greeting for all who contact your establishment in person or by telephone, regardless of their appearance or demeanor. They pay you a compliment by choosing your enterprise over the competition. Respond with sincere gratitude.

This includes answering the telephone immediately. Don't assume someone else will get it. Knowing the answers to the questions a caller may ask isn't all important. It's concern that they are not kept waiting that demonstrates you care. It will not go unnoticed.

Followup: don't let any inquiry languish. Prompt quotations can result in immediate sales, even when the price is higher. You may lose the sale, but gain a customer through your eagemess to serve his needs.

If you follow up fast, problems will not become complaints. Ask questions and provide solutions. Telephone messages, especially voice mail and electronic messages, need to be answered promptly if you hope to receive a future opportunity to serve.

Thank you: you can't say it too many times. We all need to hear it.

People make a difference: we all see examples of good customer servers each day.

The salesperson who patiently assists a confused customer, always informing and helping, and never making the non-expert feel uncomfortable.

The credit person who recognizes that the loyal customer, with a previously good payment history, may need support as much as a reminder of payment due.

Managers who stay in touch with their customers, periodically calling just to say, "Thanks for your business."

No matter how sophisticated technology becomes, it will never replace the personal touch. Customer service in its essence is people. Salespeople who successfully interact with customers enable your business to survive and flourish.

SupaTimber' Makes It Last!

SupaTimber's built-in protection deters rot, decay and termite attack to add years to outdoor prolects. lt's the attractive, clean and odor-free pressure-treated lumber with strong sales appeal lt can easily be painted, stained, or sealed with water repellents. There's excellent collateral sales potential with SupaTimber products. Look for the complete line of SupaTimber deck accessories and outdoor specialty items! And, for extra value your customers will appreciate, SupaTimber features the best guarantee in the because SupaTimber pressure-treated lumber is Produced only under strict, third party, quality control requirements. So, whatever the project, SupaTimber's the versatile dream builder that lasts!

industry! That's

Home Show to Stress ldea Exchange

Workshops, forums and roundtables will promote exchanges of ideas among attendees at the National Home Center Show & Conference, March 8l0 at McCormick Place East, Chicago, il.

A two hour discussion between more than a dozen retail, manufacturing and distribution buyers and sellers moderated by Harvard law professor Arthur Miller will open the conference Sunday moming. Workshops covering wholesalers, distributors, environmental products, remodeler customers, niche retailing, service, advertising and employee motivation will begin on Sunday and continue through Monday with mid-day sessions.

Forums on product trends and change will offer opinions of more than 40 home improvement experts on home beautification, outdoor revitalization, quality wood products, tools, maintenance and repair, basic building materials and windows, doors and millwork. The National Buildins Material Distributors Association aid the National Sash & Door Jobbers Association are among the sponsors.

Dealer-to-dealer roundtables with captains of the industry will be held throughout the show during breakfast, lunch and late afternoon. Participants will register in advance for these programs which include breakfast, lunch or snacks. Nine topics have been selected: advertising, inventory shrinkage, employee motivation, rural yards, competing with chains, sales promotions, compensation plans and dealerlwholesaler relations.

The show will inaugurate a service to assist retail dealers in setting up appointments with show exhibitors. Appointment Service requests will be forwarded to exhibitors who will responddirectly to the dealer.

Lackluster Homebuilding

As construction recoveries go, this one is in a class by itself, economist George A. Christie told the 52nd annual Building Products Executive Conference.

"Commercial building is about as bad as it is going to get, and it won't improve much in the near future," he said. "The early dominance of homebuilding is already evident and will become more apparent in 1992. In fact, there is little opportunity for

near-term expansion in anything except single family housing."

Christie estimated a total of 975,000 single family units for 1992, a 207o increase. Multifamily will gain 57o at200,000.

Housing construction, which normally jumps as much as 3OVo or 40Vo following a recession, may have trouble achieving even this lower pace with the recovery moving as slowly as signs indicate, he explained. Despite projections that housing will improve in 1992, housing starts and home sales have deteriorated since August. "If those numbers stick," Christie said, "we may have some reason to worry."

He said that commercial building and publicly financed construction won't improve much and that the 1992 outlook for total construction comes down to a matter of how much the housing market can deliver. Credit availability, geographic concentrations and demographic influences will be limiting factors in residential building recovery.

High Tech Quality Marks

Commencement Bay Mill Co., Tacoma, Wa., is conducting a 60 day test of a computerized spray-on grademarking system for the Westem Wood Products Association's quality standards service.

Manufactured by Domino Amjet, Inc., the system, which is controlled by a computer chip, uses ink spraying to apply the official WWPA grade stamp. WWPA is monitoring the test. The association has developed policies, security and quality control procedures for computer generated gradestamping of westem lumber, according to chief lumber inspector Bill Hill.

Seueml doys o cctmulotion of bonding, normally requires a special trip to the londtlil.

Employees hote the donger and work to ttonster to dumpster or truck. A Jeut minuies when unpcklng unlts, results in this compact, eosily stored vahtable scttp, olrady stored in o steel drum Jor disposol and sr,le.

Chain Gang

Chain products displays which can fit into existing store fixtures are now available from Curtis Industries.

Chain-Paks feature a built-in handle to make restocking easy.

NEW PRODUCTIS and selected sales aids

a strong defense against back, hand, wrist and arm injuries, while allowing dexterity to get the job done. All are machine washable.

Safety Supports

SafetyMates personal protective gear, a full line of safety products for the do-iryourselfer and professional contractor, has been introduced by Ergodyne Corp.

Comfortable and durable, supports limit excessive movements to provide

A back support provides a broad base of lower back and abdominal support for any lifting task, while reminding the wearer to use proper lifting technique. Designed for jobs that require holding vibrating tools like a power drill, chain saw or lawn mower, anti-vibration gloves feature padding to reduce the effects of vibration and an anti-bacterial lining to wick moisture away from the skin, keeping hands dry.

Wrist supports neutralize wrist posture while permitting full movement of the fingers and thumb. Tennis elbow supports can be used for jobs requiring forceful, frequent arm use, such as hammering and painting.

Laundry Grab Bag

Short lengths of chain are easily transferrable from reels onto the displays.

Textured Wallboard Panels

A new textured wallboard product from Plywood Panels, Inc. can be used in place of drywall panels to save time, material and monev in a varietv of new construction and remodelini applications.

Murus panels provide a completely finished surface ihat can be initalleil quickly and easily, eliminating the need for painting or other wallcoverings. They come in several colors in standard sizes with either gypsum or plywood substrate.

The finished surface consists of an acrylic latex painted base over which natural textured yam strands are posi-

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

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

Eliminates Moulding Indents

A new industrial strensth rubber band for bundling mouldin-gs without causing tie indentations is new from Henrich Packaging Co.

The Henrich Green Rubber Band is said to greatly reduce damaged mouldings, employee wrist injury claims and high labor costs.

Automated rubber band machines are available to apply the bands automatically, increasing productivity and protlts.

In a value-added promotion, free matching laundry bags are being included with Seymour Housewares ironing board ensembles featuring board cover designs by Joan Luntz.

Cover patterns and companion laundry bags include Provence, a French country design in three colors, and English Garden, elegant borders with fields of hunter green and pastel flowers.

tioned and laminated. A matchins seaming tape with the same base coai and pattern of yarn strands has a peeland-stick permanent adhesive backing to cover panel joints, providing a seamless appearance.

The clear acrylic latex coating makes the panels durable, washable and able to be painted with normal latex paint without special undercoat.

This channeled section prevents the cable from being damaged by garden tools, burrowing animals, severe weather, etc.

Lights are easily mounted to the block face. Lead wires from the fixture pass through a hole drilled in the block at the time of installation. Special connectors clamp these leads to the main power cable, which rests inside the notches on the top of the block.

Lightscaping

A new lighting system has been designed by StoneWall Landscape Systems for use with its decorative, lightweight, mortarless retaining wall. Walls can now accommodate a low voltage electric cable within the block for on-the-wall lighting.

Lighting is installed as the wall is built. Notches at the top of each block provide space for cable wiring to be concealed below a decorative cap.

Slatelike Cement Shingles

Caroline Slate, a new non-asbestos fiber cement slate-simulated shingle, has been introduced by FibreCem Corp.

It comes in a three-tab form to offer the small slate look while keeping the Euro design configuration of the firm's other three slate products.

The roofing features a 50 year limited transferable warrantv.

Payroll Software

New software from RealWorld Corp. keeps payroll systems current by keeping federal and state tax files up to date.

The Payroll Tax Service includes year-end updates for RealWorld Payroll (including W-2 s, 1099 s and federal magnetic media), the new 1992 federal tax table and tax tables for all states, federal magnetic media changes, quarterly report templates, plus 75 l99l W-2 forms. Users will be sent tax bulletins throughout the year with current information on state and federal tax tables and quarterly report changes.

Portable Bar Coders

Two new peripheral bar code printers designed for use with radio frequency handheld data collection terminals have been added to Monarch Marking Systems' line of Pathfinder Scout printers.

They are completely portable and provide high quality, low cost marking. Featuring self-contained keypad and display and a variety of options, each model can be customized so retailers pay only for the features they requlre.

Up to l0 different fixed label formats can be stored in the Printer's memory. Each printer accommodates one of six label sizesL5" wide and from .55" to 4" long.

One model operates on-line to the host radio frequency device or as a stand-alone, off-line printer. The other runs only in the on-line mode.

OHNSTO HARDWOO Merrv ChriStrnas

Fuel-lnjected Lifts

The first electronically fuel-injected, gasoline-powered lift trucks have been introduced by Hyster.

Four series of lift trucks will be equipped with the fuel-injected ver-

sion of the 4.3 liter, V-6 engine. Advantages include lower fuel consump- tion, lower exhaust emissions, dependability for cold starting and smooth warm-ups, improved handling characteristics and automatic altitude compensation.

Multi-Location Management

Version 5.fi) of Versyss' Materials Management System, Distributed Data Processing, has been introduced to meet the needs of medium to larse multi-location operations.

DDP facilitates transfer of information between systems at multiple locations to maintain like data bases while the systems are running independently.

It works by "trapping" all sales and inventory changes that occur on a system during a day's processing. Changes are then transferred to a master location, consolidated and communicated to other sites.

It will support up to 99 locations.

Super Gardener

The Shred 'N' Vac handheld shredder from Echo is designed to vacuum leaves off lawns and pavement while simultaneously shredding the debris and blowing it into an attached large capacity bag.

tip for easy, no stoop pick up; 1-3/4 bushel bagl' l1-oz. gas tank; three position throttle; electric ignition; diaphragm carburetor and2l.2 cc engine.

Quick Switch

The Reflex wireless switch outlet from Heath Zenith lets homeowners add light switches anywhere in the home to control plug-in lamps without having to run electrical wire.

Easy installation includes plugging the receiver/outlet into any room outlet, plugging the lamp into the receiver, placing a 9-volt battery into the transmitter switch and installins it on any surface.

After passing through the widemouthed intake tube, debris is funneled to a four-bladed shredder device. Heavy gauge plated steel tines in the unit's housing reduce the material up to l/12 its original volume for mulch or compost material.

The quiet operating, 9-lb. unit also features 35" intake tube with ansled

I PINE finger joint & solid moldings

I PINE shop lumber, commons, finger joint jambs & frames

I OAK picture frame moldings, selected furniture details

I CUSTOM milling & molding: We can run pine & oak patterns to your specifications

The switch transmits radio frequency signals that pass through doors and around corners. The transmitter/switch can be placed up to 50 ft. away from the receiver/switch.

I FIBREBOARD products

I PARTICTEBOARD shelving

WallStenclls

New easy-to-apply wall border stencil designs are available from Plaid Enterprises.

Offered are 14 Stencil Decor wall stencils in fashionable home decor design themes: botanicals, lace and roses, plus specialized pattems for children and Southwest decor.

Nylon Spikes

A new one-piece fiberglass reinforced nylon Spike expansion anchor for light duty, do-it-yourself fastening applications in block, brick or con-

crete has been introduced by The Rawlplug Co.

The anchor can be used to mount signs, cabinets, conduit clips, junction boxes, shelving, small electrical appliances and other lightweight items to

The Merchant Magazine

block or brick walls. Available in a dark gray finish, the l/4" x l-l/4" Spike is corrosion resistant, electrically non-conductive and can be used to fasten fixtures weighing up to l00lbs.

After the hole has been drilled, the only tool needed is a standard hammer. While the anchor is beins hammered into the hole, its uni{ue Sshaped configuration is compressed. Since fiberglass reinforced nylon has an elastic memory, the anchor tries to regain its original shape, exerting pressure against the walls of the hole at three different places to produce excellent holding power and continuous resistance to pull-out loads.

Pallet Carts

A new warehouse nestins stock truck from Hodge permits eisy unloading of pallets from trailers.

- Incoming pallets are placed directly t'rom the trailer onto trucks to be wheeled to the aisle or left as a trans-

fer station. Trucks are nestable for storage when not in use.

Trucks feature all-welded construction with a base "H" frame made of structural channel. To support heavy loads, the deck is built of steel ansle iron. The deck hinges up and is held-in an upright position with pin chain when nesting. Trucks roll smoothly on 8" x 2" plastic casters, two rigid and two swivel, mounted in quick change caster brackets.

Go On, Take lt Off

Easyoff Wallpaper Remover from Klean-Strip penetrates old wallpaper to dissolve the paste so it peels away within minutes after being applied with a brush, sponge or sprayer.

An 8-oz. bottle of concentrated Easyoff is usually enough to strip an entlre room.

D-l-Y

A do-it-yourself bricklaying system of specially designed bricks and corresponding steel leveling tabs which align each brick both horizontally and vertically while maintaining a uniform mortar joint thickness has been developed by Bilco Corp.

Bilco Brick System II is ideal for small weekend projects like mailboxes, planters, fence posts and bbq pits.

It also provides contractors with an easy, accurate, cost effective alternative to the conventional method of laying brick for larger jobs.

Fnoxsnx Grt*ingx

IIGHEST honor of Los Angetes Hoo-Hoo Clq!, !l1e fvlr Hoo-Hoo Awaid is presented to Ted Gilbert (left) (1) bv Dennid Richardson. The meet was held Nbv. 1 at California Country Club, Whittier, Ca. (2) Steve Shudoma, Rod Kautz, Roger Weilinq. (B) Robert Golding, Doug Willi-s. (4) Jim Mo'ss, Rick Robbins, _John-Snead. (5) Bill Young, I Rich-ard Miller. (6) Don Derbes, Andy Erse-k, - Ed Gavotto. (7i Hal Smith, Bill Hootund. Frank Quattrocchi. (8) Ron Peppin1j, Bob 0aks. (9)Will Higrian, Dave Butei pete Jones, Joe McGuire. (10) Don George, Dennis Conlon, Larry Widner, Louie Escoibedo.

Lumber Club May Admit Wonren

Bylaw changes to be voted upon by the Lumbermen's Club of Memphis Dec. l4 could allow qualified women to become active or honorary members and add an associate members category.

Water-Borne Salt CCA Twe A GrapeStakes Posts & Poles

(Exclusive sales agents for Coast Wood Preserving, Inc.)

If you have a problem with a government agency, a call to the federal Business Assistance Program (202) 377-3176 will help you to solve it.

If you prefer to communicate by letter, you can reach the same help through the Office of Business Liaison, Room 5898-C, Department of Commerce, Washington, D.C. 20230.

cHnxGED rbrmat rbr convenFl.r.r,, aL;rvlr.lcs anu a new rocallon highlighted the 4lst annual Management Conference of the Lumber Association of Southern Califomia.

Despite a depressed economy and a drop off in attendance, the conference was widely praised by participants as an excellent value for its members.

Elected president was Bob Slettedahl, Lumbermen's Building Center; lst v.p. Bill Sullivan, Golding Sullivan Lumber; 2nd v.p. Jeny Higman, Reliable Wholesale Lumber; treas. Blaine Smith, Fremont Forest Products; sec. Erik Jorgensborg; and exec. v.p. Wayne Gardner, LASC.

As the theme of the gathering was Dealing With Change, the leadoff session was The Past Is Prologue, with two veteran lumbermen as speakers. Leon Lauderbach, retired, noted that "we don't make change, but we must learn to adapt to it and live with change." Carl Poynor, Dixieline Lumber, then gave one ofhis patented, surrealistic business talks, this one having more to do with operating the hotel plumbing than retum on investment.

Bob Slettedahl, the incoming president, then proposed two DADS programs (dealers assisting dealers) whereby non-competing dealers

Story at a Glance

LASC's 41st Annual

would provide free counseling for dealers seeking advice and assistance. It could be administered throush LASC, Slettedahl said.

Tom Steiner, the first of two excellent and very funny luncheon speakers at the conference, said option thinking was the way for the 1990s. He called on dealers and wholesalers to find ways to cooperate as well as compete. "Find new ways to look at things," he advised.

Accompanied by a Dixieland band, members adjourned from lunch directly to a nearby ballroom for an afternoon contact session. More than 40 table top displays and exhibits were featured along with a series of Quick Pitch presentations. These were limited to three minutes, so presenters either told their story pronto or were halted by the ringing of a large bell. The new convention feature was well received and is expected to be included in next year's activities.

Next day, Friday morning, a breakfast meeting discussion of worker's compensation was followed by a talk on estate planning by Doris Steussy. She related her story as a widow beset by flawed estate planning and fraud and urged all to take steps to avoid what she eventually survived.

Califomia Forestry Association v.p.

Don Zea then told dealers to get involved at all levels in telling our industry's story in an effort to counter the destructive efforts of the preservationist lobby. T,e,anoted that materials, speakers and advice are available for the asking from the CFA.

Advice on borrowing money themed the next panel discussion. CPA David King, King, King & Alleman, noted changes in accounting and forecast an increase of CPAs in consulting and more use of electronics to speed paperwork. Bud Alleman, a CPA from the same firm, related ways preparation of complete company information with your accountants prior to seeing your banker can aid in borrowing money.

Banker Matthew S. Thoreson, Community Bank, urged dealers to "know your bankers, and keep them well supplied with regular factual updates. Don't hide the facts," he counseled.

Terry Paulson, the keynote speaker at lunch, stressed that course corrections must be continually made on the way to reaching both customer and business goals. "Be flexible," he observed. "Some days you'll be the bug, some days you'll be the windshield."

The under-4O group within LASC, the Second Growth, then presented a

Stleamlined format and a move from Palm Springs to Indian Wells enliven LASC conference... Bob Slettedahl elected president...Quick Pitches at contact session a popular new feature.

panel on change. Randy Jackson, Fremont Forest Products, said that organizations need to be prepared for change before it happens. "Be pro-active, not reactive." Kelle Vollkommer, Home Lumber Co., outlined the relationship between sales and credit noting that everyone needs to be involved in the credit transaction. John Jenkins, Boyd Lumber, emphasized that hiding from change signals the end of a business. He noted that retailers have a heavier burden of govemment and legal regulations and must function in a far more diffi cult environment today.

The casual dress of the 1950s was the order of the day at the annual dinner dance. The relaxed atmosphere proved popular as members "prepared" for next day's golf and tennis matches. Activities concluded with the annual Winners Circle cocktail party for game winners sponsored by Fremont Forest Products.

The conference was held Thursday, Nov. 7, through Saturday, Nov. 9, at the Stouffer Esmeralda Resort, Indian Wells. Ca.

..'. FRED C. HOLMES.

Fred Holmes 3470 low^ City Rd., Marysville, Ca. 959O1 erc) 743-3269

P.O. Box 8OO, Fort Bragg, Ca.95437 (7o7\ 964-6377

Steve Holmes, Steve Hautala, Tod Holmes' Phyllis Hautala, Toni Jardstrom

THANKS and a plaque to outgoing president Darvl Bond (1) from Marty Temple.

(2) Petei& Phvllis Speek, Bob Slettedahl. {gl ntice Sletteriahl, Bill Evenson. (4) Chuck 6rieser, Barbara & Dick Hawthorne. (5) Creighton & Carol Anfinson. (6) Norm

Clow. (7) Jack Price. (8) Jim Gregson. (9) Don & lda Stobaugh. (10) Kathie Gaston, Tony Aiello. (11) Kathy & Tony Savino. {12) John Jenkins. (13) Todd Pollard. (14) Jerry Hioman.

1950s THEME brought out the oldies but goodies in clothes and coiffures: (1) Rod & Cheri Jones. (2) Bill & Nancy Suliivan. Kim Finuf, Bill Young. (3) Randi & June Jackson, Margo & Phil Dodson, Joni & Dwight Haves, Linda Delanev, Don Greoson. (41 Peiter Svenkerud, john FuelIng, Jbe McGuire. (5) Andy & Marion Ersek. (6) Carl Poynor, Penny & Jim Hargraves. (7) Sylvia

& Randy Carlson, Pat & Lisa Hawthorne. (8) Ed Gavotto, Barbara & Peter Ganahl. (g) John & Louisa Mullin, Rav Bumbauoh. (i0l Nancy Sullivan, Blaine & tttancy Smitfr. (111 Leon Lauderbach, Lisa Hawthorne. (121 Eric Walz, Ron & Jill Camp. (13) Ctyde jen: nings, Judy & Gary Bowen, Charmaine Robinson. (14) Norma Gavotto, Marti Cut-

ler, Donna & George Swartz. (15) Bob Guffin, John Holstein, Richard Rose, John Snead, John Fuelling. (16) Jim Greqson, John Allen, Mark Sabre, Al Reid, Jeff Miiler. (17) Vicki & Jack Berutich, Barbara Temote. (18) Christina Petter, Wayne Gardner. (ig) Kevin & Patti Lindsay, Steve & Kathy Thur: oood.

Protect Your Share Of The Remodeling Market

With dwindling new home construction, the talk among building materials suppliers has been to pursue the expanding remodeling market. But even that has been tightening of late.

The National Association of Home Builders recently calculated that home remodeling expenditures will fall this year for the first time in at least 20 years. They expect Americans to spend $105.7 billion in 1991 on remodeling, a l.O3Vo dip from 1990's $106.8 billion.

NAHB explains fewer people are moving this year, causing remodeling expenditures to shrink. Money has gone more for maintenance and repairs rather than improvements.

"We've probably reached a saturation in households doing home improvements," seconded Judy Riggs, spokeswoman for the Home Improvement Research Sales Institute. "The growth now is from existing households."

And with so many retailers' increasing reliance on remodeling customers, competition is intensifying. To

maintainand possibly even increaseyour share in these tough times, experts point to a credo among non-professional remodelers: "Keep the customer comfortable." Basics include:

' Bright sales floorneat, organized, well lit, showy, attractive displays.

' Accessible aisleswide, well marked. safe.

' Merchandiseneatly and fully stocked shelves, fresh looking products, logically situated, good selection, quality.

' Pricingcompetitive, clearly marked.

' Upbeat salespeoplehelpful, friendly, knowledgeable, interested, easy to locate, problem solvers.

o Extrasclinics, design terminals and specialists, specialty departments, refreshments, samples and freebies.

The winners are consumers, who can choose the best environment in which to shop, and retailers who can provide it.

THE TREATED ANSWER

Lumber, plywood, round stocK stokes. poles, & pilings

Agency stomped, ground contoc'l fire retordont pressure-treoted wood products

Shown Kelley o Chorles

TREATERS annual: (1) Joe Daniel, Fred 0mundson, Bob Gowin. (2) Bob Hawes, Ed Abrams, Victor Lindenheim. (3) Trae McElheny, Carl Tucker, Tom Mari, Gus Staats. (4) Jeff Bull, Bob 0ltmanns, Bob Michet. (E) Mike Dilbeck, Joe Elder. (6) At Baxter. (71 Eric Yeadon. (8) Jim Batchelder, Ester'& Ray 0hlis. (9) David Cusic. (10) John High-

Richard Dannenburo. fl81 Scott Kamprath, James McGougin, Bu'stei

FAX 714-626-4583 WOOD-POL C&E Lumber Co., 2692 N. Towne Ave., pomona, Ca. g1T67

tower, John Cashmore. (11) Bob Smith, Rick Danielson. (12) Agnes 03borne, David Hatcher. (13) fvlike Wrenn, Corry McFarland. (14) Del Sahn, Berl Nowak. (tS) Stan Elberg, Karl Brohammer. (16) Lou'Faircher, Mary Rutowski. (17) James Beauchamo. Karl Brohammer,

ruw

Diometers tl/2" to tl2"

Teaters tackle Problems

I NTENSIFYING problems ranging Ifrom environmental pressures to product liability claims were tackled by the American Wood Preservers Institute at its annual meeting Oct. 30Nov. I at Marriott's Camelback Inn, Scottsdale, Az.

"Product liability is the only section of the law where we are guilty until proven innocent," noted J. HarveY Graves, Empire Wholesale Lumber Co., leading a panel on liability and insurance claims. Especially troubling were the many dozens of lawsuits involving fire retardant treated wood.

Keynote speaker David Cusic, Daniel & Cusic Advertising, addressed "What Business Are We in Anyway?" Robert Hawes, Mellco, Inc.. and Alfred Baxter, J.H. Baxter & Co.. spoke on legislation, urging companies to increase campaign funding.

Story at a Glance

Preservers assoclation discusses growing Problems: environmentalists, legisla' tion, lawsuits, false PercePtions...set strategy for future...Ted Clay, Honolulu Wood Treating, honored.

chairman of the board, was recognized for his industry leadershiP.

Panel discussions centered on cus-

tomer needs, moderated by Earl Clendaniel, Koppers Industries; industry challenges and opportunities, led by Jeffrey Bull, Kerr-McGee Chemical Corp.; perspectives from outside the industry, by Bob Oltmanns, SPS, and Hawes; environmental technology papers, by Mike Freeman, ChaPman Chemical Co.; RCRA listing rule, bY Bull; future requirements, by C. Conrad Kempton, Allied-Signal; Plant safety and process efficiency, by Jeffrey Smigel, Atlantic Wood Industries, and a look at six other treating associations.

Also featured were a look at the future by AWPI president Victor Lindenheim, AWPI board of directors/annual membership meeting, and ExPo '91, a one day showcase of environmental and operating technology for the wood preserving industry.

Theodore Clay, Honolulu Wood Treating Co. president and AWPI

Distributors annual

PARTNERING between distributor and manufacturer was a kev focus at the National Building Material Distributors Association 40th annual convention. (1) Bill Anders Mike McFartand. (2) Jeff Rockenbach, Jim Beerling. (3) Bryan'Dickey, Bob Riedlinger. (n)DaVid Siiil, Deke Welles, Al Leitschuh, Dick Lundqren. (5) Mike Sexauer Roelif LovelanO. j0y foni Butler, Doyle Norman, Hugh 0liptiant. (7)

Paul Hylbert. (8) Jack Golden. (9) Douo Omli, iim Daniels. Allan 0mli. (10) Attan Snydel, Rick Gottesman. (11) David Kruse, Mike Foreman, Gail Foreman. (12) Florian Maylath, Jim Turner. (13) Aft Ramey, Steve Miller (14) John Baxter. Nelson T. Russell, Kent Kiddoo. (15) Stan Conning, Joe Baughn. Dan Kris. (16) Roy Warren. Larry Gumpert. Gene Nelson. (17) Jim Ramsey.

Jane & John Ramsev. (18) Lawrence prendiville. Scott Watson, Wavhe Knutson. (1g) Jess Meritt, Jim Moselev. B0b Van Wirikle (20) C. "Mac" McAllister, Garv Rooers. (211 Dave Berenbaum, Dick 0lario, Tbnv Sanl Ioro. (22) Gray Owen. David Miller, Georoe Hall. (23) Tom Korhorn, Fred Zimmerma-n. 1992 meeting: Nov. 1-3, Marriott's 0rlando World Center. 0rlando, Fl.

OUALITY is not what you do, but how you do it, Jeff Blackman told distributors at the NBMDA meeting at Loews Anatole Hotel, Dallas, Tx.,0ct. 26-29. (1) Darrell Hungerford, Shawn Mick. (2) John Ramsey, Gary

Fallin, Keith Corley, Chris Wold. (3) Glenn

Hart, Ron Calhoun, Carl Liliequist. (4) Harry

Taooen, Scott Klern, Ken Fishbein. (5) Chris

HaHon, John Kellogg. (6) Tony Butler, Tom

Bailev. (7) Sara Bills-Thwing, David Campnell. iSi N. T. Russell, Bill Stocks. (9) Florian MaVlath, David Magley. (10) Bob Riggs, Diane Montova. (11) Hobie Swan, Mike Mc-

Farland. (12i Chuck Tavlor, Bill Bird. (13)

Georoe Brvsbn, Tom Seymour. (14) Steve Krvst-osik.-(15) Kent Blanchard. (16) Don

Sfiaw. Kathrvn Johnson, Pete Loveland. (17) Randv Jackson, Denny Redfield. (18)

Freddv Ravner. (19) James Nichols. (20)

Cnarliir Fidier. (2i) L. A. Richard. (22) Mit Scott. (23) Noimd Sheuthelm, Bob & Au-

drev Martin. (24) Ann & Steve Ellinwood, Loriis 0rtiz. (25) Cliff MacDaniels. (26) Keith Dodds. (27) Dave Wisner. (28) Bill Reeb'

Lou Maspero, Bill DiGaetano. Special recoonition was oiven to NBMDA for its contributions to Hibitat for Humanity.

ENVIRONMENTAL concerns themed Norlh American Wholesale Lumber Association regional meeting, Long Beach, Ca.,}ct. 22.

Updating members on the enviro situation Was (1) Valerie Johnson, 0regon Lands Coalition, Nick Kent, NAWLA mqi. {Z) noC Kautz, Chuck Hanis, NAWLA pres., Bilt Suf

Steve Littlefietd, Howard [ovus. (gi Jbfi Lynn, Hal Smith. (9) Rick Houti, john

QUALTTY REDrirrooD PRoDUCTS

DE,CKINC FENCINC

KILN DRIED UPPERS & TIMBEKS

UNSEASONED SURNACED & ROUCH UPPDRS & COMMONS

BALUSTE,R STOCK PREMIUM AIR DRIE,D SELECT RABBE,TTED BEVEL SIDINC

Redwood Empire sawmill at Clouerdate (llug iollsonoma County), ca., ships by flat car, pig uan and truck & trailer in full or partial loads.

livan, Robert Golding. (3) Ted Gitbert, Jack Butler, Dave Bufe', Maik Lofland. (4) Jim Frodsham, Doug Willis. (5) Biil Perkins, Wayne Gardner, Jim Newquist. (6) John Newquist, Andy Ersek, Wavne Ea'rl6v. (7)

Hodge. (10)Mike & Pete Parrelta. (11) Ted Pollard, Nick Kent, Jon Wotfe. (i2l'John Harris, Sean Brady, Scott Eilefson. (13) Bitl Sullivan, Linda M. Hodges. (14) Peter Levine, Howard Kaye. (15) Dennis Richardson. Meeting was one of a series of regional gatherings held throughout the U.S.

NEW LITIERATIURE

Yel lowstone Reman ufictu rer

A full color introduction to Yellowstone Woodworks' Livingston, Mt., remanufacturing operations and their valueadded products is free from Yellowstone Woodworks, (800) 336-4306.

Construction lllustrated

Graphic Guide to Frame Construction: Details for Builders & Designers, includ' ing 240-p. with 459 illustrations and 14 charts, is $29.95 from Taunton Press, (8C0)283-7252.'

Construction Hardware

A 48-p. catalog of engineered steel construction hardware is available from Southeastern Metals Manufacturing Co., (800)874-0335, or in Fl., (8C0)342-1279.

Don't Knock lt

A 32-p. catalog of fine crafted doors is flree from Morgan, (800) 766-1992.

Storage Plans

New d-i-y storage project Plan Sheets (Nos. 50-61), including Build-and-Stack Storage Units, Understair Storage, Garage Storage, Organizer, Storage Room, KidSize Storage Modules, Understair Work Center, Kitchen Island, Mobile Baking Center, Bookcase/Room Divider and Mobile Workbench, are free for the first l0 copies, 2OQ ea. thereafter from Western Wood Products Association, Yeon Bldg.' 522 SW 5th Ave., Portland, Or.97204.

Lawn & Garden Preview

A 10-min. video highlighting this summer's International Lawn, Garden & Power Equipment Expo is free from Outdoor Power Equipment Institute, (800) 5588767,or in Ky., (502) 473-1992.

Laminated Shingles

An 8-p. laminated roofing shingle products brochure is free from Celotex, 4010 Boy Scout Blvd., Tampa, Fl. 33607.

Facts On The Forest

"The American Forest: Facts & Figures 1991" is $2 from American Forest Counclr, (202) 463-24'74.

Residential Sheathing

A residential sheathing products catalog is free from Rmax, (800) 527-0890.

Fiberboard Finder

A "Fiberboard Sources" pamphlet listing sales contacts and plant locations is available from American Fiberboard Asso' ciation, 520 N. Hicks Rd., Palatine, Il. 60067.

Colored Forests

Our Friend the Forest, a children's coloring book promoting forest resource awareness, is 509 from National Hardwood Lumber Association, Box 34518' Memphis, Tn.38184.

ELASSIFIEE AEVERTNSEMENlIS

SELF STARTER with wholesale exoerience in Southern California in redwood, cectar and Douglas fr finishdircct sales and local inventory. Draw with good commission schedule. personal medical and dental, with family coverage available. All resumes held in strictest confidence. Send resume to hoduct Sales Co., p.O. Box 4989, Orange, Ca.92613, or call (Zl4) 998-8680.

SOUTHERN CALIFORNIA wholesale lumber company seeking experienced outside industrial sales penon. Salary/commission plus other company benefits. Contact Don Reagan, Reliable Wholesale Lumber, Inc. (818) 442-3340.

TWTSTED AND WEATHERED

Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Twisted and weathered 2x4 and wider, 4x6 and wider, economy green or dry, mixed species. Call Bill Hunter or Bruce Benton, Hunter Woodworks, (213) 775-25a4: Ql3) 835-567 I

IS THIS your own copy of The Merchant Magazine ? lf not, use rhe subscriprion forms in this issue today to get your own subscription. Don't be left out on what's going on. What you know can save you money and make you money.

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 soecial borders: $6 ea. col. inch rate: $45 camera ready, $55 ifwe set the type. Names ofadvertisers using a box number cannot be released. Address replies to box number shown in ad in care of rhe Merchant Mrgazine,4500 Campus Dr., suite 480, Newport Beach, ca.92660. Make checxs payabletoTheMerchentMagazine. Mail copytoaboveaddressorcall (714) 852-1990. Deadline for copy is the 22nd of the month. PAyMENT MUST ACcoMpANy copy unless you have established credit wirh us.

COPELAND LUMBER WISHES TO BUY Lumber Yards in the Western States. Contact Copeland Lumber yards Inc., 901 N.E. Glisan, Porrland,Or.97232, Attention John Matschiner, Real Estate Manager. (503) 212-718 I All inouiries kept confidential.

FOR SALE: Three Hyster Forklifts, 18,000 lbs. eight foot forks, side shifts, diesel engines. 1986 models good condition. Ed Fountain Lumber Co., (213) 583-1381.

SYSTEMS 800-643-5555

LOCAL LUMBER hauling Southern California roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in Long Beach, Ca. 3-C Trucking (213) 422-0426.

AT A LOSS for words? Can't find the righl card? "Dial a Poem" customized rhymes. Call Timmy the Poet, (213) 928-7808, or send personalized info to Ken Thim, 7507 Finevale Dr., Downey, Ca.90240. Allow two weeks for completion. $20 payable on performance.

The PremierWeeklyReport. . .

For the Softwood Products Industry, including both commodtf *d specialty lumber (i.e. Cedar,Mouldingand Millwork) and allpanetproducb. Cnrrn/spncvidesacrrnsistent, current,accuratereportonmarketprices,tnends,issuesandindushynews andpeople.Every nrb*.ib"r ubo receives Crorn/s Forest Industy fournal for indepth reports on subiects such as repair /remodeling, envir,onment and stnrcfural panels.

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lumbermens rcd b00k serulce

Tho Lumbormens Red Book listsall producers, wholesalers, retailers of lumber and wood products of any kind, and. all manulacturers ofwood turniture, cabinets and millworkmobile homes, prelab 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 Eook listing showsthe exact business name - complete address, including

P.O. Box and ZIP CODE!concise description of what the business does - special data such as location of purchasing departmentthe financial strength rating (not alone the net worth, but what is available to creditors)lhe 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 spoclalisl in the lield we cover. His rating allows you to make an immediate decision!

R.d Book rorrlcc glvo you -

o LUMBERMENS REO BOOK

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COMPUTERIZED MAILING LISTS LUMBERMENS

Please enter our subscription for Lumbermens RED B00K service;l for one year. Bill us: $372.50 quarterly I; $745.00 semi-annually tr; $1490.00 annually I. Please send more information, without obligation E

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[j?f",lifB"Tt#]"s.,, (o.a)e61{B., (sm)ous{s33

OBNTIUARIES

Albert J. Foreman, 69, retired coowner of Nickerson Lumber & plywood, North Hollywood, Ca., died bf complications after a stroke Nov. 7, 1991, in Encino, Ca.

Born in London, Mr. Foreman served as a radio man in the British Army during World War II and immigrated to Canada in 1941 , He made custom furniture and later became a legional manger for a plywood manufactunng company.

He came to the U.S. in 196l and opened Barrington Plywood, which later became Nickerson when he became partners with Bill Nickerson. Both retired in 1984, selling the yard to their employees.

Robert Baugh, a retired lumberman, died in Oceanside, Ca., Nov. 17. 1991, after a lengthy illness. He was 15.

active in the Lumbermens Employers Council and later in community oiganizations.

Plastic lmproves Some Tools

Despite dealer and consumer misconceptions, cost reduction is not the primary reason behind the replacement of wood or metal lawn and garden tools with an ever increasing number of plastic models.

Plastics meet the demand for better corrosion resistance, durability, low cost, and better appearance, according to Ken Spear at Ames Lawn & Garden Tools.

Polypropylene rakes are lighter weight and less costly than steel and of more consistent quality than bamboo. Hose reels molded from polypropylene do not rust or deteriorate from exposure to water. plastic scoop shovels are lighter weight, more durable, less costly and resistant to snow and manure.

Glasteel Tennessee .................5

Golding Sullivan Lumber Sa|es....................44

Hardware Wholesalers, Inc.....,............,........24

Hardwoods Un|imited....................................19

Hedlund Lumber & Machine Staining........38

Holmes Lumber Co., Fred C...............:.........49

Hoo-Hoo International ............................,.....3S

_

Mr.- Baugh established Baugh Broq. & Co., City of Industry, Ca.,ln 1938 in partnership with his brorher William. The company was sold to Southwest Forest Industries. Phoenix. Az., in the early 1970s. He had been

Wheelbarrow trays made of high density polyethylene have better weatherability than those made of steel with toughness and impact strength as good as their metal counterparts.

Huff Lumber Co.............,...............................27

Indian Country .....................39

Industrial Forest Products.............,..............53

Inland Timber Co....................-------........37

International Forest Products.......................35

Johnston Hardwood,....................,.................42

Kelleher Corp..-.-.---.-.......................Cover I

Kelfer Lumber Co................................,.........42

Keller Lumber Sa1es..............,....................,..45

LJB Lumber Sa1es..........................................21

Lumberrnens Credit Association. Inc. ........,59

M&M Builders Suppty..................................51

Mesa Forest Products....................................51

Mokelumne River Forest Products..Cover III

Navajo Forest Products Industries...............4l

Norman Lumber Co. .......................................7

Noyo Timber Products, Inc...........................51

Oregon-Canadian Forest Products...........,....6

Pacific Forest Products..................................29

Pacific Millwork, Inc........,..........,.......Cover II

Parr Lumber Co,............................................62

Philips Lumber Sa1es.....................................44

Product Sales Co...........................................,..4

Redwood Coast Lumber Co..............Cover III

Redwood Empire............,.......................,.......56

Rossmann MacDonald & Bennetti, Inc.......30

Sause Bros. Ocean Towing Co.,........Cover IV

Schaller Forest Products .:,............................3S

Sierra Forest Products..,......................,.........23

Siskiyou Forest Products..................,............53

South Bay Forest Products Co....................,.26

Stockton Who|esa|e.........,.............,............,..,45

Sumwood, Inc....,......---.-.................Cover III

Swan Secure..., ..........Cover III

Thomas Forest Products, J.M.........,............,43

Thunderbolt Wood Treating.........................23

TNT Lumber Co. ................1..........................46

Treated Forest Products...,...........................,47

Trinity River Lumber Co..............................19

Unity Forest Products....,..... ..........................42

Universal Forest Products............,................25

Waldron Forest Products.....................,........20

Ward Forest Products.........,.........................50

Wendling-Nathan Co........,............................5S

Western Woods, Inc.......................,.................3

Western Wood Treating..................................2

Willamette Industries.......,.......................J2-33

Woodfold-Marco Mfg. Inc...............,............34

Tt/*A.*rrn*

MOKELUMNE RIVER FOREST PRODUCTS

MokeLrmne River Forest Products is de' voted to excellence in providing you with allwestern sofnvood species, Masonite sid' ings, andplywood. For superb service, top quality and very competitive pricing, con' tact John Diederich, Gordon RobY or Randy Collins at (209) 367-1265 or Fax 209'367'1442 P.O. Box 2755,Irdi, CA9524l'2755

Sidinq Nails-

o No Staining

o No Streaking

Highest quality nails for cedar. redwood and othei fine wood materials.

o Slender shank and blunt diamond point

. Diamond pattern head blends with wood texture o Small head diameter permits face nailing and blind nailing r Annular ring threads preclude nail head popping and cupping of siding boards AlSl Grade 304 nickel/chromium alloy.

SWANEZE

lrtbod Screws

MI

ry!:rI!ffin

geilMnLWtalpralpLurrbp,r

Hem-Fir Hemlock Douglas Fir

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

Yard & Ofllces: End of Alrporl Rd. P.O. Box 723, Uklah, Ca.95482

Sumwood. lnc. 500 Silver Spur Rd., Suite 109

Palos Verdes Peninsula, Ca.90274

Direct lmport Sales: (213) 541-0179

FAX 213-541-7297

Sales From Inventory: (800) 242-8447

FAX 213-605-0243

-t[@

-i:--ilSelf-counter sinking bugle and trim heads

o Souare drive recess eliminates driver bit cam-out. Sharp point for quick penetration with minimal pressure

r Self-tapping coarse threads . Coated with non-stick, dry lubricating film o Solid nickel/ chrome stainless steel for superior corrosion resistance r 6 lengths: l" through 3"

For additional data and dealer information:

20940 S. Alameda St. Long Beach, Ca. 90810

(213) 774-2046

(818) 330-3991

(714\ 758-0423

FAX 213-605-0243

West Coast relresentative of Holmes & Co. of lndiana WH0LESALfRS.-qNLY!