Harhor lumber Company, Ine.

Wh"kntert ol Douglas Fir . White Fir

tkc zatrant Wesfern Pines o Redwood . Specified Ctrf Sfock POWELT

increases which are planned are predominant in the Sales and Yard classification.)

Z FINANCING-Do you believe mortgage funds in your area will be adequate or scarce?

Adcguate :1Oo/o; Scarce :30o/o.

8, MERCHANDISE-Do you intend to increase the numiber of lines of merchandise you are presently carrying?

Yes:37o/o; No : 630lo,

Whirtier - Colifornio.;Arcolo

(Perhaps we are a little overanxious, but shouldn't this ratio be reversed? If the industry is to keep ahead of other distribution channels, each dealer must be willing to seek new m€rchandising opportunities.)

9. CAPITAL EXPENDITURES-Do you plan to remodel or modernize your store and,/or yard in 1959?

Yes:45o/o; No:55o/o.

10. FORECAST-By how much do you expect your firm to increase its volume five years hence (discounting inflationary trends)?

160/o erpcct increase of Glio/o

2L/s expect increase of lt-154/o

32/o expect increase of lil2i/o

2lo/o expcct increase ol. 2l-30o/o ll. MANAGEIVIENT-WhaI will be the biggest problem facing your company in 1959? (The following are listed in order of reported relative importance:)

10o/e expcct increase of. ovet 3Lo/o.

Meeting Competition Improving Profits Controlling Costs

Dcaling with Labor Pressurc

Coping with Pricing Trends

Withstanding Infation.

Notwithstanding the favorable business outlook, many serious problems (which are rapidly becoming basic) will continue to confront the industry. In answer to the queslien-"16 your considered opinion, what do you believe are among the most serious problems facing the industry today?"-the following were most often cited: the need to regain the rapidly disappearing housing market reluctance on the part of dealers to recognize their costs and to price accordingly merchandising and selling ability must be rapidly improved if we are to compete . deterioration of historical distribution channels direct tract selling realization that the industry must improve its profit position . . labor costs must be kept in line further mechanization . . . the steadily increasing tax burden . more self-education and industry training programs

These problems are not new but they have become increasingly acute in the past few years. Their solution is of the utmost importance if the industry is to remain the principle link between the consumer and manufacturer of building materials, and will demand the best talent the industry can demand at all levels-Manufacturing, Wholesale as well as Retail.

(Tell them Aou sau it in The California Lumber Merchant)