lumber Manufacturers, Distributors Agree to Seek Closer Accordt Approve 6-Point Program to Strengthen Industry

A summit meeting of manufacturerwholesaler-dealer elements of the lumber industry has agreed on a six-point program designed to bring about "greater unity of thinking and effort in solving total industry prirblems."

The program-whose overall purpose is 'oto improve the competitive position of lumber in changing ms1k61s"-$ras hammered out by 2I representatives of the National Retail Lumber Dealers Association" National-American Wholesale Lum' ber Association and National Lumber Manufacturers Association at an all'day session of critical self-examination held on August 20 in the Forest Industries Building of NLMA. Those in attendance included the Presidents of all three lumber trade groups.

Based on the premise that producers, wholesalers and de alers must "accept ehange in product manufacture, distribu' tion and selling as reflected by the needs of the consumer and the time$," the program provides for:

(1) Immediate appointment of a permanent Lumber Industry Merchandis' ing Council, representing manufacturers, wholesalers and dealers. to meet at least twice a year;

(2) Industry'wide support o{ training programs to improve product and service knowledge at all three levels of the industry;

(3) Industry-wide efiorts to "maintain and promote continued integrity of prod' ucts and seryices";

(4) An increase in the depth and scope of end-use marketing research I

(5) Improved merchandising and promotion by all segments of the industry;

(6) More efiective cooperation between producer-wholesaler-dealer elements of the industry, to seek oogreater unity of think' ing and efiort in solving total industry problems."

A 500-word statement of principles adopted by the conference declared that the industry must "simplify the problems of specification, use and consumer accePtance, in keeping with ever-changing market conditions in which lumber must com' pete."

In furtherance of that objective, the industry leaders called for action along these lines:

"The lumber manufacturer must keep his thinking, his products and his practices flexible and sensitive to the changes referred to above; the wholesaler must adapt his sales techniques to new lumber and wood product developments; the lumber dealer must continue to adjust his merchandising policies to the needs of the consuming public and the building industry.

"Lumber will compete at a profit in tomorrow's markets only if we accept changes in a competitive world and accept the role of each element of the distribution chain with full understanding of its problems and needs."

The dayJong meeting was keynoted by NLMA President Arthur Temple, Jr., who asserted in an opening statement: "Each of us at times feels that he knows the others' problems and how to run the others' business. But I am sure each of us can learn something from a meeting such as this to better understand the otherers' problems, to get the ideas of others as to what we do wrong or what we don't do that we should, and to find avenues of better cooperation to our mutual benefit"'

NLMA Executive Vice President Mortimer B. Doyle noted that the meeting marked the first time so many represen. tatives from all three levels of the lumber industry had sat down together to seek solution of their mutual problems and discuss how they could cooperate more effectively.

He urged the conferees to state their opinion of industry shortcomings frankly and openly, adding:

'oWhat we want to do today is explore those activities we might undertake to improve lumber's competitive position in the market place.

"As producers, we want to know what ]re can do immediately to make lumber easier to specify and buy at a profil for all three levels of the industry. Likewise, we hope to spotlight those areas in which wholesalers and retailers might exert a new or greater effort."

The discussion centered mainly around these questions:

What changes, generally, moy be expected in lumber markets over the next l0 years? (i. e., volume, type of customer, distribution, manufacturing).

Do potential market changes indicate the need for reappraisal of the functions of each of the three groups and their members?

W'hat activities or steps might be recommended to improve lumber's market position ?

What few items (other than profit) create the greatest day-to-day problems reIating to lumber for each group ?

How can liaison be improved, particularly with respect to association activity, and to what extent should the individual wholesaler or retailer be expected to actively assist?

The 2l industry representatives participating in the conference were:

Arthur Temple, Jr., President of the Southern Pine Lumber Co., Diboll, Texas; Mortimer B. Doyle, Executive Vice President of the National Lumber Manufacturers Association, Washington, D.C.; W. Scott Shefherd, Vice President and Secretary of the Lumber River Manufacturing Co,, Lumberton, North Carolina; J. B. Edens, President, Southwest Forest Industries, Inc., Phoenix, Atizona; George H. Weyerhaeuser,

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