I{eus Doy fo, the Lumber Ind,ustry

By Wqlter M. leuthold, 1957 President, Nqtioncrl lumber Mqnufqclurers Assn.

(Sf e cclt deliz,ered ltef ore I{LMA boartl of directors rneeting in W'ashington, D.C.)

It has been a rare prir-ilege to serve as lrresident of the National l-unrber Manufacturers Associ:rtion during the past year. It has been a ltusy period, several of the problems have tal<er-r much of mv time, but the experience has lteen inspiring in many u'ztys-particularly the achievements of NLXI;\'s declicated staff. \\re have reason to be oroud that \\re irre members of this fine associatior.r.

For years it l.ras been mv dream to see all segments of the lumber inclustry or.re dav join forces in a total, all-out merchandising-seiiing campaign to prumo[s lumber ;rncl rvoo<l Dro(lucts. -

It has been rny hope, often mv pra)-er, to see lumber's many practical and esthetic values proclaimed under a single banner-:t banner carried jointly by the grou-ers of timber, bv manrr{actrlrers, by u,holesalers, c,rmrnission men, retailers, joblrers, nri11l-ork firms, furniture producers-anvone ancl ever\-()ne rr-ith a stake ir-r lumber's fnturc.

After ne:rri,r-hali a centrlry in this industry, such a hope, or dreanr, c:rrr lrecor-ne :rlmost :rrr obsession.

Ilei:ently, in an article for the 1957 vearbook o[ the commission lumlier szrlesmen, I suggested this u'as the ciptimum time f<.rr the lumber inriustrv to move ir-r the clirection of a unificrl l)l'( )lllr )tiorl progr:ttll.

The rcsponse to that suggestion has lteen o."-eru'helming. Nlanv segments of the ir.rclustrv appear l,illinfl to cooperate in such un effort.

Certain problems remain to l-re solr'ccl lrut errongh leadcrs of the ir,dustry l.ra'n.e pleclged support to make me conficlent that this clreanr u,ill soon be realizcrl.

Ir-r thc nreantime, the grotr.ers of tinrlrer ancl tl-re lniu1ufacturers of fine lumlrer products must pro\-ide the lca<lership for tl're u'irole inclustry to {ollorv.

It has been liroposecl that this association unclertake, on u nationai basis, lr cleterminecl mcrchandisir-rg-aclr.crtising eflort designed to eclucate tl.re pulrlic, particularly the younger generatior.r, in the splendirl clualities of our products for many an<l r.ariecl uses. Such a prog'ram u'oulcl go far l-revond l'hzrt c.rur regional associatiorrs are provirling in the n'av of special aids to lumber dealers.

One bf several objectives of the program might be to promote practical, low-cost school buildings, constructed largely of wood, to give a real break to the over-burdened taxpayer.

No rnrtttcr hou' impressive ,,ur recent progress in these fie1ds,.r-ro. inclustry can :rffor<l to sper-rcl time reflecting on past gl()rles.

The tinre has come to tunr ()ur eyes to the iuture. Thercin lies orrr oyrprirtunitv for gre:rtest r,ictory, our 6nest hour.

"'l-ltcrc is o lidc in tltc offoir.s of mcn

Ll'lticlt. taltcn at thc .flood. leads on to fortune; Ontitted. all tltc ro1'er. of tlteir lif e

Lr boun,d in sltollozt,s and in rrtiscric.s."

1'<l like to think that \\-iili:rm Shakesoeare hacl the Amer-ican luuber industry irr n-rir-rcl l'hen he s'rote tha"t passirge fronr Julius Caesar. Of course, tl'rat isn't true but the:rxiom applies to orrr ir-rclnstrv :rs perhirps rro othcr.

\\-e are inclebte<l to Dr. James I). Scott for his srlggcstions or-r the course our merch:irrdising-:rdrrertising efforts sl.roulcl follou- arr<i to otir Special llerchandisir.rg committee for rer.ieu'ing these stlgg'esti.lns arid cler,eloping a spccihc olan of action.

- We also orle a vote of thanks to ollr Executive conrurittee for its far-sighted suggestions to guide our unclertakings alorrg constructive lines in the futrrre.

But neither Dr. Scott, nor our \{erchandising committee,

lumber Commemorqtive

A United States postage stamp commemorating the Lumber industry may be issued by tl-re Post Office l)epartment this year if the lumber industry shos's sufficient interest in the idea. It rvould specificallv commemorate the 350th anniversary of the- founding of the first sau'mill at Jamestown, Virginia. Lumbermen are urged to support the proposal by t'riting to l-. Rohe Walter, Special Assistant to the Postmaster General, \\rashington 25, D.C.

(Editor's note: A lumber dealer rePorts that-all thinqs being equal these days-THIS stonrj is aft to be the fist issuctl at the n,ezu 5 cent fostal rate for frst-class mail recently requested by the Administration.)

nor our lr.xecutive committee, pointed up the significance of such a merchandising-advertising program in the light of our expanding national economy.

Here's rvhat I mean.

Our industry-indeed, all America-is on the threshold of a great new era-an era that holds rich rewards for the promotion-minded businessman.

()rrr poirulation has already passed 170 million an<1 by 1970 lill exceecl 20O mil1ion.

Ry 1975, tl-re population count u'ill har.e ballooned to a tretnendous 228 nrillion-a gain of one-tl'rird more people in orrll'alreul hlrlf a generation.

Sulrpose, ir-r the nreantime, our merchanclising ellorts can hait the decline in this country's rzrte of per capitzr lumber consttmption.

Nlind vou, I'm not suggesting that this prograrn u.ill increase that rate-although tl-rat could very n'ell turn out to be the case. I'm merely askir.rg vou to cor-rsider u,hat it u'ould mean to us, as lurnber m:rnufacturers, if this program \\-ere to stabilize the per capita cctnsumpticrlt rate at its present level-213 board feet.

Gentlemen, that would mean annual lumber consumption of 48 billion, 663 million board feet by L975, compared with 36 billion, 400 million board feet today. I'll leave it to you to translate these figures into dollars and cents.

r\ctrrally, these population statistics tell orrly half the storv. The most important age group is the 20-to-30-yearol11s. These are the ages at tvhich people marry. start fami1ies. bul- homes and {rrniiture, begin entering the marketDlace 1n earnest.

- The 20-to-30-year-old segment of our population notv totals about 22 and a-half rnillion ar.rd u'ill remain relatively stahle for the next fcu'vears.

Then, beginnir-rg in tIe eariy lotr0's, it l'il1 unclergo tremendous gron,th ancl continue rising ior decades. I3y 1980, our 20-to-30-year-old age group u'il1 lte a bulging .10 millior-r -nearl_\' tn'ice the l)resent figrrrc.

Think what that will mean in terms of the demand for homes alone ! And the houses these new families buy aren't likely to be crackerboxes.

\\rith u,ages ;rncl lir.ing stancl:rrrls continrring to rise, you c;rn bet th:rt most of these nen hornes u-ill be ir-r the luxurv or near-luxury cl:rss-th:rt they'11 be homes u'ith lots of u'ood, if u'e stnrt selling its zrdvantages the \\'ay \\'e sl-rould immediately.

-\s far as the number of neu, homes is concerned. even the pessimists look for an annnal rate of at least 1.2 million starts in the earlr' 1960's, compared l,ith t<tday's level of about one million units. In the 1970's. annrrlrl home building is expected to hit trvo million units. And for the 1980's, our housirrg experts see a rate of about tu'o zrud a-cluarter milli,,n trnits annuallv.

fn a sense, the jumber industry has only to ride the ti<le

" Babe, that there's phat I call a SOUND FOUNDATION I " observed Paul Bunyan as he delicately lifted up the old house with his pinkie. The Blue Ox grunted. "See them mudsills, girders an' posts? Been settin' there 25 years in the damp an' dark, supportin' 50,000 pounds o' house-an' not a trace o' rot or termites anywhere. Sound as the day they was cut...Babe, sure as you're true blue, that's BAXCO Pressure Treated Foundation Lumber *."

BAXCO pressure treated FOUNDATION LUMBER

{, rVhat else, Paul ? For the past 2 t years

BAXCO pressure treated Foundation Lumber has been safeguarding thousands of \Testern homes against termites and wood-rot. Pressure treatment Iocks in the chemical protection for keeps. And when you figure, Paul, that just one reprir bill, caused by rot or termitcs, can run into hundreds of dollars-well, why take a chancc ? Especially since BAXCO Pressure Treated Foundation Lumber adds so little to the total building cost-just a few dollars. of our expanding national economy in order to cash in on a great potential.

Write today for free booklet.

Hou'ever. I don't believe the lumber industrv-at least not its most progressive glsrngnf5-1yill be cont-ent merely to coast along. Certainly, our competitors have no sucl'r prans.

Let's take a look at a recent report comparing the amount of advertising money spent in one year by lumber and wood product firms with the amount spent by our opposition.

For every ten dollars of gross sales, lumber and rvood product companies spent four cents on advertising.

The stone, glass and clay products people put up tr,l,ice as much-eight cents every time the cash register recorded a $10 sale.

Metal products n.ent even further, allocating ten cents on this same basis.

Finally, \\re come to the chemical companies, the manufacturers of plastics and other synthetic materials that arc keeping us awake nights. These fellorvs spent a generous 30 cents on advertising for every ten dollars of gross sales -more than seven times the lumber ratio.

Does this explain why the gross sales of chemical comDanies are about three and a-half times those of lumber and wood product firms?

One fact is clear-the industry that pinches on its advertising dollars is only short-changing itself.

Those vu,ho have been less-than-enthusiastic about a national merchandising-advertising program for lumber have suggested that a stumbling block may be the intense regional and species competition in our ir-rdustry.

The question has been posed to me: "Hor. are u,e going to overcome that rivalrv?"

Gentlemen, 'lve're not-going to try to overcome it. We're going to encourage it, because it's a healthy sign, an indication that our industry is full of life and vigor.

A national merchandising program cannot succeed unless there is regional promotion. At the same time, such regional activity u,ill be only a one-lung affair unless there is national promotion to give it purpose and direction.

For example. A fundamental rule of marketing is that the consumer must flrst decide r,vl-rat basic material he's going to use. Horv can you start selling him on one species of wood over another until he makes uo his mind that he's going to use u-ood in the first place?

That first decision is the all-imDortant one. That first decision will he whether to buv u'oocl or plastics. r,vood or aluminum, wood or steel. wood br -asonry,^wood or wallboarcl.

The primary objective of our national merchandising program would be to make the consumer decide on wood. Then, and only then, will the lumber industry realize the full benefits of regional promotions.

I knon' you're all familiar rvith the promotional campaigns for steel, aluminum and plastics.

U.S. Steel, Alcoa and Monsanto, for instance, aren't trying to promote one group of steel and aluminum alloys over another, one type of plastic over another.

They're interested in driving home to the consumer the many places steel can be used in the home and industry, ir-r promoting the advantages of aluminum over other materials, in hammering an.ay at the excellence and versatility of plastics.

That's lvhat a national merchandising program can do for lumber and t'ood oroducts.

Some of our competitors have carriecl this fundamental rule of marketing i step further. Kaiser, Reynolds and Alcoa, the big three of the aluminum inclustry, have joined forces in an initial nationrvide campaign to promote aluminum a'il nings.

These manufacturers realize that the homeorvner. shookeeper and factory superintendent must first be sold on aluminum, instead of iloth or plastic, alr,nings. After the consumer makes that decision. each producer will have a clear field to promote his on'n particular brand of aluminum,

'The Perfect Rx'

California Lumber Merchant

Los Angeles. California

Herer'vith check f or Subscription reneu'al. Your combination of The Gulf Cc-'ast Lumberman and The California Lumber N{erchant is the oerfect Rx for an informatir e. brief-you-up tn ice-monthly.

Armstrong Lumber Co., Ltd. Waco, Texas; Dalias, Texas and each company rvill be assured a share of the market commensurate rvith its individual selling efforts.

The same thing applies to the lumber industry. There is no conflict between regional and national merch.an'dising efforts. Each complements the other.

Perl.raps some of you are u'ondering rvhy I'r'e taken so much time to discuss certain negative attitucles torvard our mercl-randising-adr.ertising progiam. I mean the fzrct that, in some minds, a national merchandising effort u'ill rveaken regional campaigns, perhaps even cause a cutback in regional buclgets and staff personnel.

Gentlemen, I've mentit.rned these negative attitudes because they need to be identified.

I clon't nlean '\\'e should try to castigate those wl-ro hold such viervs. Certainlv not !

But u-e should recognize the fallacies of their thinking. We should recognize that no one rvho is doing an effective regional promotion job need fear a national merchandising Program.

On the contrary, our regional staffs should welcome such a national campaign as a means of increasing the scope and effectiveness of their own programs.

Before our promotion efforts start to pay off, many other issues rvill arise. Believe me, rve'll be doins ourselves a serious disserr.ice if rve trv to hide such problems. The healthy thing is to bring them orrt into the open and invite solut1()n.

In some cases, f believe rve'll find that actually u'e have no pro'blems-tl.rat the solution rvill suggest itself. In other cases, we rvill have to compromise our differen haps srrbordinate sutue of the'points that seem important to us, in order to advance the good of all.

And that touches on a closelv-related subiect-the question of unanimity. Progress in iny field can-be stifled if all the parties involved insist on |N/c agreement on every ooint.

-

On any job u'orth undertaking, there is usually a difierence of opinion. This indicates that those responsible for planning the project have given it careful study and consideration. Such difference o,f opinion is a sign that those involved are not merely "following the leader" in blind fashion.

And non. to revierv quickly the job before us.

What u'e've been talking about is the need for one big effort-Sales Promotion. To achieve this. u,e need Unitv-. It's Timely, no one can deny that, and the time, of cours-e, is Non..

Actually, such an effort is fmperative, if lurnber is to hold its markets against the assaults of its competitors. \\rhen u'e realize our positicin and undertake the tvoe of merchandising-advertising progranr indicated, the iesults u'ill be Kinetic, a fancy lvorcl for dynarnic.

Merely by coincidence, you'll notice this spells ..SPUTNIK."

Gentlernen, I suggest tl.rat lumber manufacturers have an opportunitl'-indeed, a responsibility-to send their orvn SPUTNIK into the skies.

And this sl.rouldn't be a satellite. no sir !

It should be a full-fedged moon that illuminates new sales opportunities activates new markets . . gives our industry new strength and vigor.

The challenge is ours to act decisively-and notv ! I knorv lve will.