Work and Serious Business Characterize Palm Springs Conference of Lum berAssociation of SouthernCalifornia

JF' members who attended the Palm I Springs Conference of the Lumber Association of Southern California thought that they were in for an easy, "resort-type" meeting, they were soon dissuaded from their illusions, for close attention to 9-to-5 business was expected, and received, from all at the three-day meet, November 16 to 18. Headquarters was the Riviera Hotel in Palm Springs.

Over 150 members and guests registered for the Conference, and all sessions were heavily attended.

"Better lJnderstanding of Industry for Better Profits" was the theme of the Conference, rvhich began Thursday morning at 8:00 a.m. with a Directors' Breakfast Meeting. President Terry Mullin welcomed the members at the 10:00 a.m. opening business session, and immediately launched the program with the first round table discussion, "Improvement of Economic Conditions through Better Labor Relations and IJnderstanding of Costs."

Questions and Answers

Ken Dietel of Pomona Lumber moderated this discussion, with participants being Hal Anawalt, Anawalt Lumber & \4aterials; Miles Davidson, Sun Lumber; Dick Fenton, Wholesale Lumberman's Association of So. Calif.; and Ralph Russell, Consolidated Lumber. Following is a brief rundown on questions asked and answers glven.

Question: "What are your thoughts on back orders and pick-ups?"

Answer: (by Hal Anawalt) "Nobody likes back orders it's expensive, and we try to eliminate as much of it as we can most back orders occur because salesmen don't check before they sell an item back orders are expensive both to the contratctor and the yard.

"The Anawalt Lumber and Materials Co. has set a policy on pick-ups. If a customer returns the material himself, we give him credit for the amount of material less 10lo. We only credit him for the amount of material which we think can be resold. If we have to pick it up, we charge l5/o, only credit on material which we can resell. We do not credit on specialties."

Question: "How do you arrive at a proper basis for handling costsl"

Answer (by Miles Davidson/ "In a yard operation or any plant operation, 1., the costs you can attempt to control are made up in the physical handling of your material of various volume levels because of various factors it is pretty important that you establish a yardstick to see how close you are coming to the best cost at all times. To start a program like this you should agree upon all the payrolt and expense allocations that are to be put into formula include all of your labor, contract l-raulings, everything that has to do with the physical processing of lumber from yorrr "in the pile costs" to the job site delivery. Then you can keep a weekly or monthly chart showing the dollars per unit the important thing is that you establish a unit, and keep dollars on that unit of the cost incurred delivering the material to the job. Third, you should show overtime dollars on the same basis for the reason that overtime is one of the most important factors in delivering note any extraordinary factors like wage increases, any jobs cut to length, strikes, time lost because of weather, excess stock piling then after months of average experience you can chart and plan ahead and knorv that on a given vohrme level just about what your plant costs are going to be."

Question: "How important is your yard superintendent in the labor relations area?"

Answer: (by Dick Fenton) "The yard superintendent could be doing twice as effective a job as he is presently doing. I think generally that the first contact between employee and foreman or superintendent is an opportunity for education that is overlooked it is an opportrrnity for presenting the company's policies to the men."

Question: "How can we obtain the best production from our work forces?

Answer: (by Hal Anawalt) "The work force sl'rould be looked at with the longest range view possible you should screen all of your applicants as carefully as possible not only for the rvork they are going to do, but also for what -vou might want them to do in the future the best man you can get is going to pay you well. You should always be certain that all of your employees are told what is expected of them. If an employee does a good job, be sure that you recognize his efiorts and if he is not doing his work well, he should also be so advised. Your supervisory employees should be rnade to recogrrize that their conduct must at all times be exemplary.

"Another thing which comes up is personal jealously, which I think is an understated problem . a supervisor can hold down an excellent employee or try to undersell the man's efforts in order to build himself up."

How To Jump In

Thursday afternoon's session, moderated by John Sullivan of \Mestern Lumber, concerned the subject, "How to Get into the Home Improvement Business." Participants included Robin Nlorgan, Adams Lumber; Kingston McKee, Forest Lumber; North Swanson, Eagle Rock Lumber; and Jim Williams, Arcadia Lumber.

Introductory remarks by John Sullivan: "The scope of this panel and the words 'home improvements' as used today in our business and the area itself , are primarity concerned with dollar volume, room additions, alterations, etc. It has become involved to a point where a number of lumber companies have literally gone into the home improvement business, to the extent of taking out contractor's licenses, hiring their own crews, or possibly subbing out their work to reliable contractors. In most cases, the beginning of tl.re job is solicited by the lumber company, the whole project including the financing is set up by the lumber company's sales representatives, then the work begins by and under the responsibility of the lumber company."

FOR PAUN SPRINGS PICTURES, SEE PAGES 34 AND 38.

Question: "Which is best, hire entirely new personnel from outside sources or transfer from within your own organization?"

Answer (by Jim Williams/ "This would necessarily depend upon how you're going into the home improvement business, how extensive; a determination of the evaluation of your trade area and your present customers; after you take all of the factors of your yard into consideration and what you expect this home improvement department to do, then you will know how many additional personnel you might need naturally, we all like to choose or promote people from within, if possible.

"There are differences in the kind of work. hou,ever. There is a lot of night work-if you are going to sell perhaps your present personnel might not be interested in this, because of family problems, etc."

Question: "New personnel. We are presuming home improvements is a department as such. Who are the personnel ? Are they draftsmen or who ?"

Ansrver: (name unknown) "'Ihis depends upon your program you can start with one man and with the sn-rallest type of job and develop the program slowly and surely you can hire a designer, a manager, a couple of salesmen, having lined up your production before you do any advertising, and go into this thing with a very large outlay, but your income is going to have to build up rapidly in order to compensate.

"However, one man can start the operation.

"Possibly the whole reason for lumber yards getting into the home improvement business is that, as Art Hood said for years and years, if you turn your leads over to a general contractor, you will see half of those again because the general contractor is his own worst salesman."

Question "What are the capital requirements for a firm entering the home improvement busr. ness ?"

Answer (by North Swanson) "This depends on the scope of your program : we started with a five-man staff, it was too expensive, but we'll do all right.

"Mr. Richheimer, who offers a course, suggests for those who do not own lumber yards that they start with $25,000 capital . . $2,000 in fixed assests, telephone, office equipment, etc.; $1,000 for advertising; $3,000 for initial manpower, manpower you don't get any production f rom; $5,000 for a showroom, model rooms, etc.; and the balance of 914,000 for operating capital.

"If you are in the lumber business and want to do this in a moderate way, I think for a fiveman work force you will need about $15,000