The Buildins lndustry ln 1950 and 1951

By H. R. Northup Execulive Vice President Notionol Reloil lumber Deolers Associotion

'I-here is no doubt that, in 1950, retail lumber and building materials dealers' have handled the greatest quantity of materials of all time. Their sales must be coming close to $7 billion as against the $5 billion plus reported by the Census Bureau f.or 1949.

The total volume of nes' construction in 1950 is expected to be at least $26 billion, which sets an all-tim'e record. The physical volume of neu' construction also reached a new high during the year but only because of the sharp gain in publicly-financed u'ork. Despite the amazing record made in home building. private construction as a whole fell someu'hat belou' the physical volume attained in the 1920's.

During the first half of 1950, the building industry attained the highest momentum in its historl'. The outbreak of Korean hostilities, hon'ever, meant an overnight change in the picture for construction, as in all industries in r.vhich strategic materials are used to a greater or less degree. The immediate effect was a decided acceleration in the already high demand for materials that might later be in short supply

Coupled with the freight car shortage. this development sent lumber prices skyrocketing over a four-month period. Then, fortunately, the trend rvas ret'ersed. Scare buying lvas largely eliminated, the transportation sitttation came closer to normal, new construction staJts began tapering off, and the market broke sharply.

For the National Retail Lumber Dealers -\ssociation. the events in Korea meant a quick adaptation of its plans in order to meet the new situation. They meant the outlining of a flexible program centering attention on the emergency problems, with the degree of emphasis dependin on how.far and how fast the defense production program develops.

One important step taken in facing the emergellcv \\'as the approval of an 8-point program b1' the Board of Directors of the National at its meeting in Houston. Iissentially this vigorous policy statement calls for increased production so that all defense needs and most cirilian requirements can be met simultaneously. It rnaintains that credit controls, higher taxes, and reduced government spending are preferable to all-out controls, so long as the countrv is not engaged in a large-scale war.

Temporary casualties in the changeover for NRLDA n'ill be such trade promotions as National Home Week. the Good American Homes Program, and the Open-End lfortgage, rvhich rvill be shelved pending an easing of the rvorld situation. In the months ahead these projects will be replaced bv a study of the Economics of Distribution in the retail lumber and building materials industry and the derelopment of the nerr Dealer Product Data Book.

The National's legislative program, through rvhich nerr legislative proposals affecting the industry are carefullv follos'ed. u'ill be intensified so that individual dealers ma;be kept completely informed of all developments and so that their support may be enlisted rvhen needed to protest and prevent unsound governmental action or to promote constructive plans. The success of such activity has most recently been exemplified b1' Congressional acceptance in the Defense Production Act of the industry's position that \\.ages should be controlled along with prices should such controls be instituted.

In addition to the long-established agencies-HHF-\. FHA, Wage-Hour, and others-rvith rvhich NRLDA has dealt principally in the past, the nerv NPA, NSRB. and otl.rer offices administering the emergency programs have been added to the list of those groups before u'hich the industrt''s point of vierv must be effectively presented. Leading dealers have already been called to membership on many of the industrv advisorv committees set up to guide those agencies.

The National also is cooperating closely rvith other building industrl' groups and rvith organizations representing retailers in other lines. In this rvay it can lend its support to the over-all industry effort in the rearmament program and rvill also be in a position to enlist the support of the other groups on matters affecting the u'elfare of the retail building materials industry in particular.

NRLDA's educational program rvill be highlighted b;" the continuing of the 30-Day Courses for employees of the