Merchant Magazine - December 1983

iltE gmARr mAN'g PtYrryooD?

Yep. ln fact L-P-Waferwood@ does plywood jobs even better than plywood. It cuts and nails more like solid wood. It splinters less. It's smooth and uniform (no knots, core voids or patches). It's a great sheathing. And it's approved by the APA for Sturd-I-Floor@ construction. But the best thing about L-P-Wafenvood is this. It costs less than plyrvood. A lot less.

No wonder it's the smart man's plywood.

L-P-Wafenvood. It's the lightest, brightest waferwood made. Stock it. For the name of your distributor, call today. Louisiana-Pacific Corporation, Coeur d'Alene, Idaho, 208-667-8MI.

* WE AT LAMINATED TIMBER WOULD LIKE TO TI{ANK *

* EVERYONE FOR THETR SUPPORT DURING THE PAST YEAR,* *)t * AND I^IISH YOU ALL THE HAPPIEST OF HOLIDAYS ! ! ! ! *

Although this past year has brought many changes to Dennis, 14, Michael,l l,and Katie, 8, the D, M, and K of our company name, DMKPacific's dedication to service and excellence remains unchanged. AII the best wishes to you for the holiday season. Health, Happiness and Long Life!

Stick a Masterpiece"

BUSINESS FORECAST ISSUE

Demand For Building Products To Expand ln '84

Demographics Support Coming Upturn In Housing

Warehouse, Off-Price Retailing Are Key lssues

'84's Looking Good But lt's Not Time To Relax

Home Center Merchants Head In Many Directions

Housing Starts Could Hit High of 1.75 Mitlion

Home Center Industry Matures, Finds New lmage

Economic Growth, Inflation, Interest Favorable

Publisher Emeritus A.D. Bell. Jr.

Editor-Publisher David Cutler

Associate Editor Juanita Lovret

Assistant Editor Will Anderson

Contributing Editors Dwight Curran, Al Kerper, Gage

McKinney, Ken Thim

Art Director Martha Emery

Staff Artist Carole Shinn

Circulation Dorothea Creegan

The Merchant Magazine (USPS 796-56000) is published monthly at 4500 Campus Dr., Suite 4E0, Newport Beach, Ca. 92660, phone (714) 549-E393, by The Merchant Magazine, Inc. Second-class postage rates paid at Newport Beach, Ca., and additional offices. Advertisine rates upon request.

ADVERTISING OFFICES

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FROM SOUTHERN CALIFORNIA: contact Carl Vann, 205 Oceano Dr., Los Angeles, Ca. 90049. Phone (2 I 3) 472-3113 or (714) 549-8393.

FROM THE MIDWEST: contact Wayne Westland, I109 willow Lane, Mt. Prospect, Il. 60f56. Call (312\ 437-7377

['ROM THE NORTHEAST: Joe Shea, 6l Maine Ave. F-4, Rockville Centre, N.Y. I 1570. Call (516) 678-1625.

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Just gimme the facts, m'am

lN THIS issue, the distinguished group of Iforecasters we've assembled to tell you what to expect in the future are dealing mostly in terms of 1984-1985. We would like to move beyond those times about five years, to 1990. At that time, it is foreseen, videotext will become commercially available on a wide basis.

If you're thinking "oh, no, not another (expletive deleted) computer system to cope with," then brace yourself. That's exactly what it is, or more rightly, an extension of the computer.

Videotext will allow a customer seeking information to type his questions on a computer keyboard and receive immediate answers. The devices could be used by retail operators on their showroom floors. Wholesalers could field questions by allowing customers and suppliers to tie in with their computer videotext operation via telephone links to receive the information they need right from the screen in front of them. Tied in with a word processing device, this system, either at retail or wholesale levels, could even be programmed to produce written

responses to questions where appropriate. The computer at one place of business could instruct the computer at another place of business to have its word processor print out the answer, saving postage and the time involved in mailing.

These systems have been tested with mixed results. Time, Inc. has decided to shelve its proposed system until commercial prospects appear brighter. Yet today, certain statistical information is available from pioneering publishers, such as Random Lengths, via computer link ups. Braver forecasters see videotext in place and working on a mass basis within two to three years.

Whichever the case, videotext appears at this point to be yet another marvel emerged from the electronic labs to drastically change the way we do business. Like the computer itself, it will probably be another new product of the Age of Information that will be tough to do without. We may not like the change, but we'd better learn to cope with it.

The "search for Excellence" confinues ot... Ffiarrch ll.l2.l3.l4, 19E4, in Chicago!

Special Displays! ldea Exchange!

...the NATIONAL HOlllE CENTER SHOW of f984!

Don't nloc the lcarnlng and buylng erperlence of the year-the largeot. .the_moot dlveroc. thc noot In.depthsho-s ercluolvely lor rctallero oelllng do-lt-youroelf productc.

See touch observe literally thousands of products--{iscover what's new-and what this diverse and complete range ol DIY products can do for your customer and your op€ration.

Take part in the most stimulating seminar program in home center retailing... a program designed to help you succeed in your "search of excellence" in all asp€cts ol your business. Learn sound, practical ideas for etfective management-merchandising and advertising techniques-{perations and personnel-to name lusl a few.

Visit the special displays...gather ideas from Home Centers of the Year...lind examples of ad dollars working at top etlectiveness In the Advertising Display Center.

Exchange ideas with retailers who share your same challenges and obiectives. Find answers to your product mix queslions lrom more than

1,300 exhibiting suppliers.

Four full days ot product exhibits, information and excilement at the Wortd's Greatest Event lor Do'tt-Yourcelf Retailers...

The srh Annual NATIOI{AL HOilE CEI{TER SHOW -nAnCH fl-l4l,,EcoRnCx PLACEICHTCAGO

IMPORTANT:

NATIONAL HOilE CEIffER HOIIE lllPRovEllENT'84 CONGRESS & EXPOSITION

March 1 1-14, 1984/Chicago, lllinois

IMPORTANT: In order to process your registration, your company's business activity must be indicated below: 0) fl RetailetDealer

(J) DWholesaler/Distributor

(P) ! Other (please describe)-

NOTE: Exhibitor personnel should not use this form. Please use form provided in Exhibitor Kit.

Vigorous home improvement demand

FI EMAND

Y f or building products will continue to expand in 1984 on the strength of a vigorously grow- ing home improvement market, a further, though small. increase in new home building and an accelerating pace of commercial remodeling activity.

In the home improvement market, all the key elements of demand are and will remain in place to support solid sales gains in the year ahead. First, higher levels of employment, a longer workweek and moderately increased compensation will combine to lift total wage and salary payments some l09o above this year's level. Of course, not all that increase will represent additional "real" purchasing power, as consumer prices rise by some 590. But the remaining 590 real income improvement that is expected is a lot more robust than that which has been realized in recent years.

At the same time, household balance sheets are in good shape as asset values (homes and common stocks) have risen faster than liabilities. Moreover, the debt servicing burden of households is lighter than it has been in more than a decade. Finally, account must also be taken of the personal income tax refunds that will again be forthcoming as a consequence of over-withholding in 1983.

On the new housing front in 1984, very little year-to-yqu change is expected in the average level of mortgage interest rates, although a modest decline may take place in the first six months. While interest rates will remain high enough to forestall a hous-

Story at a Glance

More increase in demand for building products in '84. small gains in home building more commercial remodel. ing activity. . more dispos- able income will luel in. creased buying activity by the public.

ing boom, money availability is ample and basic demand strong enough to support at least some small improvement in sales of both new and existing houses, as well as housing starts.

"Main street" commercial remodeling, especially sensitive to interest rate levels and retail profitability, should benefit from stability in the former and marked improvement in the latter. At the same time, the overbuilding of new office space in many areas is prompting owners of older structures to modernize or see their vacancy rate rise and their rents fall.

All in all. when 1983 and 1984 are history, building product sales will have recorded solid back-to-back advances for the first time since t978-1979.

Sustained economic growth ahead

IN

THE LAST I Business

Forecast Issue, we predicted that 1983 would be a year of transition: a year of evolving housing recovery, but in an environment markedly different than in earlier business cycles. We said that emerging non-residential markets and deregulated financial institutions have per-

manently altered our business. Happily, housing recovery has begun- a stronger recovery than any of us had hoped. We think housing starts will reach 1.7 million units in 1984-not including 290,000 manufactured housing shipments.

That is a remarkable demonstration of the desire of Americans to own their own homes. In 1983 our industry furnished housing at a rate above the post-World War II average- despite mortgage interest rates of l3-l4Vo, a $200 billion federal deficit, and the

highest level of unemployment in 43 years.

Nevertheless, three-fifths of the nation's single family dwellings are more than 15 years old-excellent candidates for renovation, repairs and alterations. Improving new home values will push R, R & A spending up as much as l2s/o in 1984.

New non-residential construction will improve modestly, thanks to better corporate profits. But retrofit of existing offices and warehousesparticularly energy-related pro- jects-will become the largest nonresidential segment within several years.

Despite much pessimism, many factors point to long-term sustained economic growth in the United States:

Story at a Glance

Stronger housing recovery than expected. .renovation, repairs and alteration spend. ing io climb. . non-residential construction bolstered by retrof it projects. . good business climate for rest of decade.

new technologies employed by a maturing labor force in the largest and most stable free-trade area in the world.

The federal deficit is unacceptably high. But financial deregulation and lower income taxes allowed new personal savings to reach $210 billion this year - up 2590 from 1980. With good management and good luck, this increased savings level will moderate interest rates long enough for recovery to help reduce the deficit.

Further, we think the election will confirm policies which encourage saving, investment and production, creating a climate for rational, profitable, business planning for the rest of the decade.

We think all of these factors point to a successful 1984.

Everything's in place for a good year

I FTERthreellyears of recurring recession and aborted recovery, the expansion of .the constructlon markets that took hold in the middle of 1982 looks like the real thing this time. ffiMilnffitr-5 # Building activity, however, is up because interest rates are down and this is an important qualification. Demographics certainly support an upturn in housing, but the cost of money remains a keyinthe shortterm. Dr. Paul Volcker's reappointment was critical. Experience shows that recovery based on a sudden switch of monetary policy can be turned off as suddenly as it is turned on, butVolcker is a known entity and his moves can be anticipated, which provides an underlying confidence in the recovery.

So, what does all this mean for the business climate in 1984, and in particular for building products? There seems little doubt in anyone's mind that the economy's recovery is now firmly established and for once all the analysts seem to be in agreement. We are on the upswing through most of 1984, and continued gowth should steadily absorb excess capacity and gradually reduce unemployment. Inflation will creep up, but not outside the 4-6s/o range, and increases in real disposable income and consumer confidence are good signs for the retail in-

dustry. As far as housing is concerned, with long term interest rates settling into a period of relative stability (mortgages around l3-l4s/0, although likely to move up and down a half point or so from time to time), we should see another year of 1.7 to 1.8 million unit starts.

The market for d-i-y has got a lot going for it in 1984. With sales of existing homes up, plus more cash available to the householder, the outlook is fairly bright. Everywhere there are indications that the consumer is getting smarter and smarter. Value is important, but so is quality. Because of ever increasing concern for personal security, consumers are looking for the reputable, high quality products to fill their needs in that area, and are prepared to pay the price for them. Value is the watchword.

The outlook for remodeling is also encouraging. Socially it is becoming very acceptable to take older buildings

Story at aGlance

Economy on the upswing in '84. .consumer becoming value conscious. ..remodeling on fast track. increased aggressive pricing, merchandising. more promotion activity.

and renovate them. People no longer want to knock down the existing structures and replace them with modern edifices. This trend, of course, is further strengthened by tax advantages and state and federal support. The interesting thing about remodeling is that it spans the whole spectrum from the single family home to major urban redevelopment schemes. Most of it is fast track type work and can bring good margins for both the contractor and his supplier.

There are several implications for the manufacturer, wholesaler and retailer. The critical thing to look for in 1984 is competitive activity; pricing will be aggressive at all levels in the channel and merchandising will become paramount. Look for increasing promotional activity, rebates, free gifts, special values and offers, and, of course, a growth in coop advertising.

Overall, 1984 should be a year of optimism. Traditionally a presidential election year brings with it an increase in business confidence and stability. Recovery is established, but we aren't in an industry that will support complacency. It is a growing but aggressive and changing marketplace. To quote from Naisbitt's "Megatrends," the one thing that is certain about the future is that it will not be the same as the past. We are in a dynamic environment, those of us that face the challenges and changes and are able to adapt most quickly to the ne€ds of our marketplace will be the successes in 1984 and beyond.

Warehouse, off-price retailing key concepts in '84

llHE actions

I of the Republican administration and the Federal Reserve Board took hold in 1983 producing a moderate overall economic recoverywhile bridling inflation.

Lumber and building material sales and profits outpaced the general recovery, with lower interest rates and real personal income growth generating both increased levels of new housing construction and greater disposable income for home improvement projects.

Warehouse home centers. of which we, Home Centers of America, are a part, will continue to proliferate throughout the country. The formula, which has gained widespread attention in the building materials retailing industry, includes:

(1) a warehouse-type facility ranging from 65,000 to 100,000 sq. ft. in developed retail areas;

(2) a minimum of 50,000 households within an eight-mile radius of the location;

(3) merchandise displayed on warehouse racks which heretofore was not readily available in breadths and depths of selection at discount prices; and

(4) more assistance available to the d-i-y customer.

Many observers have pegged the total market share available to home improvement retail warehouses at

Story at a Glance

Warehouse home centers will spread. .total market share pegged at 10-15o/o. .home improvement, d-i-y to flourish sustained growth for '84.

l09o to l59o of thetotalmarket. The correctness of this assessment is yet to be seen. However, with the home improvement and repair market forecasted to grow from $56 million in 1983 to $124 million in 1990, it would appear that home improvement sales at lumber yards, hardware stores, home centers and retail warehouses will continue to be available to the hardworking, aggressive retailer who pursues this market vigorously. This growth in the total market, including the d-i-yer, will be achieved particularly in light of the widening gap in the rates of inflation in handyman labor costs versus d-i-y products.

Most industry observers are touting warehouse retailing as the panacea of the '80s. It is my opinion that this format will be replicated with previously untestedlines of merchandise by a wide range of retailers. Off-price retailers will flourish as the value conscious consumer will seek out brand name merchandise for less.

In 1984, I will closely monitor interest rates and money supply growth as these two indices provide insight to new home building and business formations. I am pleased with the moderate recovery in 1983 and look forward to sustained slow growth in 1984. I feel the boom and bust economic cycles of the'70s and'80s will become a thing of the past provided that the conservative economic policies of the Reagan administration are continued.

Retailers expect better times

3JBETTER'

means improvement and that seems to be the scenario an- ticipated by building material suppliers for 1984. It would be great to predict that next year will be "one of our best years," but many of the underlying uncertainties affecting the current housing recovery will still remain.

Indications of a better year during '84 are that while our industry will not hit that so+alled 2,000,000 ideal start frgure, we will see a more constant improvement in housing starts, less up-

and-down movement in key interest rates and noticeable politically motivated efforts by Congress and the Administration to keep the economy growing, however slightly.

Housing again helped turn the economy around, but it was really a case of scratching and clawing. Except for brief periods of under-1390 FHA-VA mortgage rates, the housing recovery was caused by pent-up demand, a "3I-Flavors" approach to mortgage financing, contractor buydowns, and, in some areas, extensive use of mortgage revenue bond financlng.

Many in the industry wore shortlived smiles during the first half of '83 when the lower and affordable mortgage rates caused a massive applica-

tion assault on the Veterans Administration. Unfortunately for building material suppliers, most of the appncations were to refinance, to unload

Story at a Glance

lmproved housing starts. . less fluctuation in key interest rates...a better year, but many underlying uncertainties dealers confident, but staying lean & mean and looking for sustained growth.

the 16 and l79o mortgages that people acquired in 1981 and '82. We won't have as much of that to face in '84 so when the federal mortgage rates go down again, it should mean more new construction and resales.

Efforts to control the federal budget deficit will play a great influence on housing starts and substantial remodeling projects. Any move made by Congress and the Administration to reduce the deficit will give a psychological lift to the economy. Commerce, industry, state and local government and the buyng public just want-need-a sign that an effort is being made to restrain government's competition for capital.

Deficit reduction, coupled with the

ability of major corporations to use greater than anticipated profits in 1983 to finance expansion, will lead to a more constant, reliable flow of mortgage money. As Individual Retirement Accounts (IRA's) and similar savings programs grow, and if the deficit is attacked to any degree, there will be a very noticeable relief on the existing pressure in the money markets.

Building material retailers are not unlike the Fortune 500 crowd. During the past three years or so, new markets were explored, management efficiencies became the order of the day, and personnel needs were examined more closely. The improvements have resulted in less dependence on any one segment of the buying audience, more

Caution='84 can be tricky

I FTER

Ilthree vears of gloomy'eco-nomic news, 1983 has been a solid recovery year for our businesses and many others. Housing starts have improved, key economic indicators have been favorable, inflation appears under control and consumer confidence is up. Businesses are reporting profits that are well ahead of 1982 and all indicators point to continued growth in our economy in 1984 and beyond.

Now is not the time to relax. It would be easy to forget the lessons of the recent past and to slip back into the old patterns: high inventories, big staffs, unaffordable big wage and benefit increases, steep price increases and wasteful business practices.

Although the economy is rebounding and our business is improving, we feel there are plenty of reasons to be cautious. Here are a few:

. Interest rates continue to be high in relation to inflation. This has a negative impact on housing starts, home resale, industrial and commercial construction, inventory levels and consumer spending.

o Our federal government contin-

ues to spend more than it takes in through taxes. The huge deficits will not be addressed in 1984 (an election year) and will be difficult to reduce in the near future. Many countries around the world are on the verge of bankruptcy. As these economies contract, we lose export customers and our financial community is at risk if loan repayments are defaulted. Serious conflicts in the Middle East could escalate at any time and trigger another oil crisis in the world.

In a nationwide survey, the Accountemps employment firm found that the average American wastes almost one-third of his or her work day. Couple this finding with the fact that productivity gains in America have been lower than many other nations and you will realize that we are losing our competitive edge.

Now is not the time to relax. Here are some things we are doing to assure that our current improvement will continue:

Staying "in touch" with customers and determining what they need from us to be successful. We are watching the trends in our industry and in our business so we will be in a position to adapt. Assuring that our business provides the level of quality in products and services to keep us in a leadership position. Over the past

emphasis on effective overhead controls and fewer, but more talented, employees.

The dealers will not toss aside what they have learned through necessity. At every meeting held by the National Lumber and Building Material Deders Association or its 26 federated asociations, it is apparent that dealers intend to stay effectively lean, look to customer diversity, and continue to teach themselves and their employees what must be done to succeed in good times and bad.

Dealer attitudes are positive, confidence has certainly been restored, and, in general, retailers look to 1984 as the lead year of a period of sustained growth.

year, for example, Stanley Tools has introduced a number of new products.

We are making significant gains in productivity each year. This includes improving methods, keeping up with new technologies, reducing waste and saving energy.

We have programs in place that motivate employees to contribute their ideas to keep our business competitive.

Our advice to other businesses is to use this recovery period wisely. Take advantage of the volume and profit increases to become more competitive. This strategy will enhance short term performance and put you in a position to weather the inevitable downturn in the economy or the sudden crisis brought on bY world events.

Story at a Glance

Continued economic growth . . negatiYe market factors in' dicate cauffon. action need' ed to assute cunent uPswing keeps going...use recovery pedod wisely.

We are on the right track

(oil"lo""iT;

1983, we completed a 20-city schedule throughout NorthAmericaof memberRegional Meetings. Attendance at these gatherings hit an alltime 23 yeirr record. More importantly, the outlook and confidence offorest products wholesalers and producers was up substantially from our meetings in l98l and 1982.

In a paragraph, the "consensus environment" among wholesalers was that volume is up; market levels are fairly healthy; there is strong pressure on margins; and it takes a lot of work to garner profitable business. It is a very competitive marketplace, and there is a bit too much production.

It is association poliiy to provide a forecast for the coming year. Currently, the NAWLA forecast for 1984 housing activity is one of the most conservative. There are member firms that either believe or hope for stronger numbers than our 1.6 million prediction for 1984. Conversely, the other half of the market for forest products unrelated to housing looks better to the association than to some of our wholesalers who distribute in them.

We believe that the heavy industry industrial market for lumber and plywood will improve in 1984. Likewise, the do-it-yourself and remodeling market should be stronger as unemployment continues to decline. We also look for better activity in the farm market for wood products. While the midwest drought was serious, the crops that survived will likely bring better prices and will get an additional boost

Story at a Glance

Wholesalers optimistic. .1.6 million housing starts. .non. housing market strengthening treated wood use on the in. crease. pretty good busi. ness for good operator.

from the PIK program of Uncle Sam.

Overall, we are optimistic about our forest products industry because we are on the right track for sustained profitable business. In fact, we could make the good argument that a 1984 "housing boom" of 1.8 or 1.9 million unis might be counter-productive in 1985.

Today, our competitive climate prohibits "order-taking. "Sales people are working harder and being more innovative because it is being required. This is healthy for our industry.

The manufacturer is seriouslv looking for new markets and is gearing up product promotion and effort for both

domestic and overseas markets. Western Wood Products has their [mpetus program. The Southern Forest Products Association is heavily involved in export opportunities. The Canadian industry is promoting hard in both world and North American markets. This is healthv for our industry.

The use of treated wood is on the increase. Systems like the All-Weather Wood Foundation and the Plenum Floor System hold a great deal of promise. At the same time, wholesalerremanufacturers are increasing their activities in the smaller, but still viable, specialty wood markets.

In summary, business is going to be pretty good next year for the good operator. There is much promise for sustained good business beyond 1984. There will benew market opportunities for the industrious. Not a bad outlook for the New Year!

The big ''ll,l" is interest rates

IFHE year

r 1984 should see a steady gain in the economic recovery. Theone big "if" in the housing industry is interest rates. If mortgage interest rates remain below the l39o or lower range, then the mid'80scould someday be known as "boom years."

The population grofih of married couples crossing the age 30 milestone during the decade of the'80sis about 40,000,000. This is the generation that will be looking and buying new homes providing there is financing available at realistic interest rates. Even if much of this demand is marginal, that is made up of households who can not afford new or used housing, this still amounts to a large potential market with substantial growth through the '80s.

Although we will see a gain in housing starts, the housing products produced will not be the same and all areas of the country will not share equally.

1984 will continue to be a year of cautious optimism. Channels of distribution will continue tight controls of inventory while expecting the manu-

facturer to respond with quick delivery and high service levels. Builders are starting to recognize that they must be better marketers of their product; for example, realizing that quality locks can increase the sales oftheir product

Story at a Glance

Gain in economic recovery due. .lower interest rates could create housing boom .distributors' inventory control builders need to market product. .consumer spend. ing key to remodeling & reno. vation.

by appealing to the security interest of their potential customer.

As we approach the end of 1983, we are witnessing an increase in the consumer spending which is another indication of the nation's economic recovery. This positive attitude in consumer spending could lead to an increase in homeremodeling and renovation, which would also place higher demands on residential hardware during 1984.

Housing and d-i-y revive panel market

FR*.Jg:

Plywood Association, 1983 has been an exciting time. The housing market began to perk. Other markets continued to shine and the industry 85 .,!' started to regain its health. We see an increasingly bright outlook for the structural panel market in 1984 and over the next five years.

APA's market research and economic services div. believes that under the best circumstances, with an easing of short-term interest rates and subsequent moderation of mortgage rates, there could be enough housing activity to generate starts at the 1.7 million plus level in 1984.

However, the association believes that even if interest rates are less favorable and housing starts are at a lower level, the 1984 election year influence has the potential to help the industry surpass 1983's strong performance. Our estimates for total U.S. structural panel demand are for 20.2 or 20.3 billion square feet in 1983 and about 21.9 billion feet in 1984.

In 1982, new housing consumed 3090 of total structural panel production. This year it will be closer to 40q0. Of the remaining 6090 , the largest segment is home repair and remodeling. This market has been a savior for our industry during some very tough times. And we fully expect home-

Sforyat a Glance

Possible 1.7 million housing starts in'84. . .structural panel use in '83 20.3 billion sq. ft., next year, 21.9 billion ft.... housing will use about 40% .8o/o-10o/o increase in repair and remodeling.

owner activities to continue to accelerate during the recovery.

People are starting to move to new jobs and buy used houses that are prime candidates for "personalization through remodeling. " Others are retrofitting for energy conservation. We shotrld see an 8-1090 increase in homeowner activity next year from a very strong base this year.

We continueto be excited about the future prospects for the PerformanceRated Panelprogram. With it, theindustry can continue to expand its product base, despite an ever diminishing and increasingly costly timber supply. New panel layups, thicknesses and species, plus the costeffective technologies for waferboard and oriented strand board will provide dealers with

a continued full line of structural panels at a competitive price.

An educational job is ahead of us. Dealer salespeople needto know what to specify, how to read and use Span Ratings, where to go for detailed information and what applications are appropriate for these products. APA is geared to provide this education.

New literature and advertising are being made available. Field men will conduct meetings and training sessions to support this program.

Our enthusiasm for the future is based on the expanding market horizons we see. As the American Plywood Association looks to the future, dealers will continue to be critical to the success of the structural panel industry.

Distributors optimistic

EACTS and f figures appear from all sides to confirm the dramatic rebound of the building material industry during 1983. Whether it was the turn around in new residential housing, the restored buyer confidence in home repair and remodeling, or the smiles on the faces of most of the nation's building supply retailers and wholesalers, the evidence was clear: a devastating three-year industry recession had faded away-and not a moment too soon.

In the light of this recovery, what about the future. What will happen in the year ahead? Will 1984 see a continued rise in building material sales? For a number of reasons, it appears that 1984 will build on the momentum that has been established in 1983. Nevertheless, one should be cautious.

The building material industry is not headed for the lofty levels and figures experienced in past years. 1984 will be a good business period for most, but financial pressures, while favorable now, can change and throw a "wet blanket" on an industry sensitive to interest rates and money supply. At the moment, both factors are favorable. Interest rates have been

stable and may come down slightly through the winter months. A significant rise in personal savings has restored deposits to levels not seen in three or four years. Funds are available for new residential mortgages and for remodeling loans at rates many consider acceptable. This is confirmed by the inventory of both new homes and existing older homes decreasing during the third and fourth quarters of 1983. Like Mark Twain's death, the rumor about the end of the fixed rate home mortgage was greatly

Sfory at a Glance

Momentum will continue in'84 interest rates, money supply favorable. warehouse retailing to go nationwide... year of opporlunity.

exaggerated, and its return has made potential buyers more comfortable about the purchase ofhomes and condominium units.

Money has been discussed first in this forecast because, in the opinion of the writer, whether we are wholesale or retailers, homebuilders or remodeling contractors, our respective busi-

(Please turn to page 37)

Home Centers 1984: A Year of Positioning

rlHE DO-it- I vourself industiy is huge - $45-plus billion at retail in 1983. But it is a far different industry than it was a few short years ago.

High inflation in the late 1970s. two years of recession in the 1980s and a maturing of the home center market have brought permanent change.

During the 1970s, when home centers were in an explosive growth stage, sales volume for the industry grew at better than a 25s/o average annual rate. This year, as the industry recovers from recession, home center sales for the first threequarters were running l2u/o ahead of a slow 1982. Home Center Institute projections through 1990 show average annual sales growth at about 1490, still substantial but slower than the boom years and a sign of a maturing industry.

As that maturity develops, the battle for do-it-yourself dollars is intensifying as new types of do-it-yourself retailers come into the marketplace. And the do-it-yourself consumer has changed, has become more price conscious, more value-oriented, more sophisticated, better educated, more experienced.

The newest competitor is the warehouse home center. Although the concept was brought to reality in Atlanta four years ago, it was not until this year that warehouse home centers literally burst into the do-ityourself market.

Home Depot, well entrenched in Atlanta, moved into Florida markets, then into New Orleans to compete head to head with W. R. Grace's HouseWorks; other retailers jumped into the market primarily in Texas, Florida and California.

Most offer the customer few amenities, but they do offer low prices, broad assortments of all hardware and building material related lines, and, in some cases, welltrained salespeople. The salesfloors are huge, in the 70,000 to 90,000 square feet range; merchandise is stocked to the ceilings, moved in with

forklifts; and customers are expected to pick up and move their own pu.rchases in exchange for the low pnces.

As fast as these retailers have sprung up, as much volume as they are moving in a year's time (they figure to do something like $15 million annually per store), they seem to most industry observers to be a major metro phenomenon.

It takes a population base of at least 150,000 to support just one of these large warehouse home centers. This limits their potential locations to about 40 cities, and reasonable estimates of the total number of units that could be supported in the United States place the maximum at 400. Further, these warehouse retailers are expected at maturity to account for only about 890 to l09o of total do-it-yourself sales.

Although the physical numbers may be limited, the impact on home center retailing, especially lumberbuilding material retailing, is substantial and far-reaching.

Home Center Institute studies done in the Atlanta and New Orleans markets document how warehouse home centers can affect other retailers of hardware and building materials.

They have the potential to make profound changes in where consumers buy lumber and building materials. An HCI study of the Atlanta market indicates clearly that consumers go to home centers and warehouse home centers for lumber purchases to the exclusion of traditional lumberyards!

That study put home centers'

Story at a Glance

Home center industry $4S billion at rctail. .d.i.y custom. er maturing...warehouse im. pact substantial. . .home centers' effect on lumber sales. .retail advertising's role in price perceptions.

share of do-it-yourself lumber sales in the total United States at 52v/o of the market, lumberyards at 4lVo; in Atlanta, however, home centers have 480/o of the market, home center warehouses 3590 and lumbervards

7 Yzolo

The reason?

Heavy, aggressive advertising that delivered a strong price-value message. The warehouse retailers planted the idea that they were the lowest priced retailers in town, not always true as HCI research found, but the "perception oflow prices can be reality" when consumers choose where to shop.

The warehouse home centers delivered their message powerfully in advertising and reinforced it with a salesfloor presentation of merchandise that shouted low price and quality goods. The lumberyards in Atlanta have not conveyed a consumer orientation.

In a "marketbasket" study that checked prices of identical items in hardware stores, lumberyards, discounters, home centers and home center warehouses in New Orleans, HCI found that in actual fact the hardware store and lumberyards, for example, had lower prices on many of the items but consumers thought the warehouse home center was lower priced across the board... lower even than K-Mart.

The HCI study in Atlanta found these factors to be of greatest importance to do-it-yourself consumers: good value for the money, quality merchandise, low everyday prices, good sale prices, wide variety and selection of merchandise, adequate stock of advertised specials, knowledgeable employees, easy return policies, and quick checkouts.

It further found that in Atlanta and New Orleans, customers perceived the warehouse home center as being the best retailers at providing those factors.

The ramifications of this new, intense competition for do-it-yourself dollars for traditional home centers and lumberyards center on the need to recognize the changes in the consumer and to find a special niche in the market for each store.

Although consumers may be price conscious and/or price aware, a ma- jority of the consumers still value quality goods, service, and convenience. How each retailer decides to go to market depends on his own strengths. Pure price is one way; but specializing in service, a convenient location, customer assistance and top quality merchandise are equally effective ways to position a store in a competitive market.

Positive '84: '85 slowdown

TJIF";*"*,1: look for economic growth, inflation and interest rates should supportanother good year for housing and the building materials market in 1984. However, the industry may face more difficult times in 1985.

The economic recovery has now been under way for a full year. It has been a typically strong expansion, despite higher interest rates in the past. Housing's share in the economy has been supported by deregulation which has facilitated the inflow of funds into financial institutions.

We believe economic growth will continue next year, with real GNP up an average of 590. Employment and income gains will help generate the financial base and confidence necessary to support the housing industry. In 1985, however, theFederal Reserve may have to again tighten policy substantially, pushing real GNP growth below 390.

The reduction in inflation has been nothing short of spectacular. In early 1980, consumer prices were soaring by nearly I 5 9o For 1983, we estimate an average rise in consumer prices of only 3.390. Changes in monetary policy affect prices with a delay of about two years, with the first effect on output and employment. The speedup in monetary grofih, which began in the latter part of 1982, has displayed its expected initial and predictable impact in the form of a strong recovery.

Story at a Glance

Continued economic growth GNP up an average 5% slight rise in inflation near end of '84. . .interest rates steady lor 1st quarter. lavorable sales and earnings for building products. homebuilding may face a difficult 1985.

However, we are concerned that inflation will move significantly higher by the end of 1984 and 1985. Our forecast calls for an average rise in consumer prices of 5.890 in 1984 and 7.990 in 1985.

The Federal Reserve appears to have returned to a policy oftargeting interest rates to achieve its goals. In 1984, it will try to accommodate domestic and international economic grofih, prevent too rapid an expansion, and maintain the money supply within broad guidelines. The monetary authorities will probably wish to appear politically neutral next year, avoiding either sharp increases or declines in interest rates.

We believe that interest rates may stay close to current levels or edge slightly lower through the first quarter of next year if monetary growth continues to be restrained. However, interest rates are then likely to rise gradually forthe remainder of 1984 as monetary growth picks up and inflation begins to rise. In the following year, we believe the Federal Reserve will again take action to control in-

flation, which will produce larger increases in interest rates in 1985.

Rates on 3O-year hxed rate mortgages may average about 13.2590 in the first quarter of 1984 and then moveto 13.75s/o byyear-end. Weanticipate a more pronounced rise to approximately 14.750/o by the end of 1985. Variable rate loans and builder assistance in financing are likely to mitigate some of the impact of higher rates.

The outlook for the housing and building materials industry thus remains quite favorable for 1984. Our forecast calls for U.S. housing starts of 1.63 million units, off about 3Vo from the estimated total for 1983, but more than 5090 above the depresed level of 1982. We then expect housing starts to decrease to a total of 1.4 million units in 1985.

Homebuilding will thus face a more diffrcult year in 1985 if inflation rises as we expect, forcing the Federal Reserve to again be restrictive. However, the near-term outlook implies favorable results in sales and earnings for building products during 1984.

Recovery threatened

IT IS QUITEIpossible

that the strong economic recovery of the country is over. This is not to say we are returning to the chaos of l98l1982 but that the word "recovery" has given way to "expansion," a much milder expression of growth.

The recovery which is now in completion of its first anniversary has been much stronger than many thought would occur. Whatever the cause of recovery (while all factions of economic thought take credit for it), there are indications that it could falter. Recovery was sustained the first half of the year by consumers mindful of interest rates, who were inspired to buy. Higher incomes did not fund these purchases, but savings did, so it may not last too long. Our savings rate is the lowest since the Korean war.

Spending has helped our industries and the production of durables has

Story at a Glance

Recovery gives way to slower expansion. . .lurther progress may lalter if business investment doesn't increase. the Fed will be left by the administration to cope alone with debt higher operatang costs.

risen sharply. Housing has also been strong. Lower interest rates beginning in 1982 and the spring of 1983 contributed greatly to a strong residential building market. Some momentum is being lost, however, as interest rates have edged up.

Our course of domestic recovery will continue into 1984 but by the middle of the year, the recovery could be waning unless business investment picks up. There are some who fear our anticipated budget

(Please turn to page 52)

Western lumber outlook brighter

A;"3'3.:15feet, consumption of softwood lumber produced in the United States in 1984 should move up moderately over 1983 levels. tmports, virtually all from Canada, should add another I1.6 billion board feet, thus giving Canada a 3l9o share in the U.S. domestic market. Total consumption: up 7.890 at36.6 billion board feet.

Housing, lumber's principal user, can be expected to move to I .7 million units in the year, well over the 1.6 billion unit outcome that now seems likely in 1983. Clearly, the early 1983 pace has decelerated, but the numbers are higher, the recovery more mature, the outlook brighter.

If housing is lumber's big user, it is also lumber's "wild card." Fluctuations in usage for residential construction have recently ranged between a high of 18.6 billion board feet in 1977, and a low of 9.5 billion board feetbarely half the'77 rate-in 1982. Demand in the coming year should reach 15.0 billion board feet,9.8 9o over the 1983 pace. Western softwood's share in the market: fractionally higher at 46.30/0.

Story at a Glance

Lumber consumptaon to increase 7.8"/o .. . housing moves to 1.7 million units... secondary markets hold steady. mortgage rates near 12o/o business on upswing.

The secondary markets, repair and remodeling, non residential construction, and materials handling, have been steady by comparison. In the aggregate they still represent a "heavy half in total domestic softwood consumption, and will do so again in the coming year. The Western Wood Products Association now forecasts improvements in all four segmentsand in an "all other" category that includes military defense.

Housing analysts have been surprised by the home buyer's willingness to live with 12 and l39o mortgage rates. That fact more than any other has fostered housing's recovery. That's the good news. However, these same rates also limit the magnitude of the recovery-and that's the bad news! We do not see mortgage rates dipping very far under l29o in 1984. Nor do we see housing reaching the 2.0 million unit level anytime soon. Federal deficits are still menacing. Moreover, business activity is finally on the upswing-good news with at least a nuance of the negative. Federal Reserve Board Chairman Paul Volcker recently told the Senate Banking Committee's subcommittee on economic policy that "rising private credit demands in reflection of increased business activity are beginning to clash with the heavy financing

Treated lumber sales keep climbing

lllITH the UU longawaited recovery having finally begun, pressure-treaters look for a 15 -2090 further increase in sales in 1984. While this will not be as great an increase as occurred in 1983, it still represents a substantial move upward, in spite of a continued tight money market.

Nationwide, the trend towards the use of pressure-treated wood has been increasing each year. The American Wood Preservers Bureau notes that in 1983, two billion board feet of treated lumber will be produced by its member companies, a 250/o improvement over 1982 and

more than double the 1979 level. With 1.7 million housing starts projected for 1984, Western Wood Preservers Institute member companies expect to see an increase in sales of treated lumber for traditional uses such as sill plate stock. But more importantly, new business will also come from continued growth in the d-i-ylconsumer market, as home owners become increasingly aware of the lasting

Story at a Glance

Pressure treated wood sales to increase...d-i-y, home improvement, remodeling markets will grow. .apartments, mobile homes arc bright new markets.

durability and other benefits of pressure-treated wood.

More and more, home owners are adding outdoor living space through decks, benches, planters, fences, etc. The home improvement and remodeling market grew strongly even during the recent recession. Dealers are stocking more pressuretreated lumber because consumer demand has grown. Do-it-yourselfers are learning how to build decks through publicity in magazines, newspapers, books and free literature.

Another area of promising growth in 1984 will be apartment construction. The need for rental units, combined with significant tax incentives, makes this segment of the market a bright spot in 1984. New apartment complexes will include decks, fences, playgrounds and other outdoor structures suited

needs of government." The wellknown "Kaufman scenario"-one where government and commercial borrowers crowd housing out of the money markets-is alive and well in the banking industry.

On balance, positive signals outweigh the negatives. Business activity has enhanced federal revenues in the third quarter of 1983, driving the FY83 deficit $6 billion under earlier expectations. Money supply has been essentially pleasing to the monetarists who inspire Fed policy. Inflationary pressures are quite tolerable. Moreover, housing's unadjusted series-actual starts, monthby-month, through nine months in 1983-now augur for 1.6 million starts in the year now ending.

In view of these observations, lumber consumption should increase in every segment in the coming year: up 9.890 to 15.0 billion board feet in residential construction; up 4.890 to 6.5 billion board feet in the nonresidential segment. Repair and remodeling consumption should gain 3.890 to 8.1 billion feet, while materials handling advances 9.9s/o to 3.6 billion feet. Last, but proportionally most promising, is the category called "all other." It covers government procurements, including those for defense: up 13.490 at 3.5 billion board feet. for pressure-treated wood construction.

Beyond these established markets, a new market is now beginning to develop for the use of pressuretreated wood in the construction of mobile home foundations. Nationwide, 285,000 new mobile homes will be built in 1984. Earlier this year WWPI supported a promotional project directed to mobile home manufacturers and building officials and inspectors. A direct mailing sent to these parties introduced them to the cost benefits and other advantages of constructing mobile home foundations with pressure-treated lumber.

All factors considered, treaters are cautiously optimistic about the sales gains that will be realized in 1984. All agree that there will be an improvement over 1983, but the extent of that improvement could vary greatly depending on changing interest rates and the aberrations of election year politics.

The signs are positive, so 1984 should provide yet another significant step towards the continued growth of pressure-treated wood sales in the lumber market.

Shelter related industries at turning point

FTER

several disastrous years for homebuilding and related industries, 1983 marked a sharp turnaround in these industries' prospects. New housing starts, which had sunk to less than l.l million units in 1982, increased nearly 5090 in 1983.

Several factors contributed to this remarkable improvement. First, the decline in mortgage rates during the first part of the year helped stimulate pent-up demand by easing potential homebuyers' affordability constraints. Second, the unexpected strength of the economic recovery produced gains in real income which were translated partly into increased expenditures on housing and housing improvements. Finally with the large overhang of unsold inventories cleared away during 1982, increased demand for new homes and home improvements in 1983 required an immediate and substantial increase in both construction activi- ty and in the production of homebuilding supplies.

Now as inventories of unsold homes and building supplies have, for the most part, reached a balance with the level of sales, the gains made by the homebuilding and related industries in the coming year may not be quite as spectacular as those in 1983. The possibility of a clash between growing private and public demands for credit may place upward pressure on mortgage rates and reduce the growth in expenditures on new homes and home improvements in 1984. Moreover, even if the much-feared clash proves to be little more than a minor skirmish, real interest rates are still likely to remain high by historical standards. Interest-sensitive industries, in general, and housing, in particular, may not rebound as quickly as other sectors of the economy, as a result.

Nonetheless, there is cause for optimism. The underlying demand for shelter remains strong, despite nearly unprecedented levels of real interest rates. The surprising firmness of house prices in 1983 as well as the

rising level of rents in many areas attest to the strength of demand. Continued ecomonic recovery in 1984 will tend to further strengthen this demand. First, the rate o f household formation will likely pick up as the recovery gains momentum, giving a boost to housing-related expenditures. Moreover, gains in real income will ease homebuyers' affordability constraints, even at high real interest rates. Thus, while the rate of growth in housing expenditures in 1984 may not rival that of 1983, the homebuilding and related industries can look forward to a period of continued recovery.

Certain trends in housing expenditures that became apparent in 1983 will continue in 1984. As long as mortgage rates remain at relatively high levels, the tendency towards downsizing new units will prevail as one means of helping homebuyers overcome affordability constraints. Likewise, multi-family construc-

Story at a Glance

No interest rate relaef housing rebound sluggish. strong demand for shelter. multi-family & rental construc. tion holding on. pivotal year.

tion will continue to grow in many areas. Rental housing construction, in particular, will continue to make its comeback as a result of rising rents and changes in the tax treatment of rental properties.

Finally, 1984 is likely to be a pivotal year for the homebuilding and related industries, as it will be for the economy as a whole. If the Congress and the current administration can make progress toward resolving the problem of large structural deficits and thereby avoid a credit clash, long-term interest rates will likely drop substantially, laying an excellent foundation for a strong rebound in housing-related expenditures.

These are the author's opinions and do not necessarily represent opinions or policia of the Federal Reseme Systemed.

BrTtce's Building Materials has opened a new contractor/builder facility in Puyallup, Wa., Dave Iwata mgr. National Lumber & Supply, Santa Ana, Ca., has acquired sites for four more stores to open in the next l8 months; aWest Los Angeles unit debuts next month...

Berg Hardware ond Supply, headed by Arthur Berg and Steve Ellwood, has opened in Portland, Or.; they acquired Empire Pocific Industries earlier this year. Four Star Building Materials has opened its 3rd store, 15,000 sq. ft. under roof, in El Sobrante, Ca.

Richert Lumber Co., Livermore, Ca., has moved into a new 3000 sq. ft. retail showroom with a 6000 sq. ft. warehouse slated for spring completion.

Pay 'N Pak, Kent, Wa., will open its first Home Improvement Warehouse Outlet in Honolulu, Hi., in Feb.; 12 more warehousetype retail units will be opened in the San Francisco Bay Area by 1985, served by a recently opened 170,000 sq. ft. distribution center in Hayward; their 56,000 sq. ft. prototype warehouse store is being reformatted in Kent; store No. 100 is now open in Chico, Ca..

Whittier Lumber, Whittier, Ca., received a beautification award from the Whittier Beautiful committee for yard improvements . ..The Price Club will open a retail outlet in Azusa. Ca..

Specialty Forest Products has moved from Phoenix, Az., to nearby Chandler on the Pima Indian Reservation with an all-wood office and warehouse on 7 acres ., ,Knox Lumber Co., a wholly rwned subsidiary of Southwest

Forest Industries, Phoenix, Az., is making a stock offering of 2.4 million shares..

Hodge Forest Industries, Inc., Boise, Id., is modernizing the former ldaho Hsrdwoad sawmill it recently acquired at Kootenai, Id....The Anderson, Ca., planning commission has dropped a proposal to revoke a use permit for Chaps Lumber Co.. .

Western Forest Products Inc. is a new co. with a new redwood mill at Soledad, Ca., which starts production this mo. anticipating 25 million feet of production per year on a l-shift basis; Bob Deming, gen. partner, Mike Mosby, sales mgr..

Sanford-Lussier, Inc., is moving to new quarters at 2200 Nadeau St., Huntington Park, Ca., with a9000 sq. ft. miII,25,000 sq. ft. of lumber sheds and 15,000 sq. ft. moulding warehouse. Bonnell Lumber Co., Los Altos, Ca., has closed with the retirement of owner William L. Bonnell. Jr..

Genstar Building Materials, Flintkote Div., is closing operations in Palm Springs and Riverside, Ca. ...Plantique, Inglewood, Ca., has acquired Plant Friends. . Westmark & Associates, Costa Mesa, Ca., are new So. Ca. sales reps for The Lucas Group div. of Sherwin Williams.

Crown Zellerbach is selling its Port Townsend, Wa., mill to the Hsindl Paper Ca. of West Germany. .;Crown Zellerboch Conada is now operating with a new

The Merchant Magazine

name: Crown Forest Industries

Limited Medford Corp., Medford, Or., has opened a fiberboard plant in Ireland.

Louisiana-Pacific will build a Waferwood plant on a 75 acre site near Oletha, Co. .Senco Fastening Systems has opened a new distribution system with centers in Hayward and Rancho Cucamonga, Ca., Portland, Or,, and Salt Lake City, Ut..

BF Goodrich has named Cozrmercial Wqllcoverings Source Irzc., Denver, Co., as a distri butor.

Manville Corp.'s reorganization plan asking permission to split into 2 companies is being opposed by lawyers for asbestos claimants .GAF Corp.'s sale of its building materials business to Centaur Metals Services, 1rc., has been blocked by a court order initiated by dissident shareholder Samuel Heyman...

FHA and VA home mortgage interest rates will now float with the market, rather than being set, under new fed. regs. effectiveearly next year...lenders clum adjustoble rate mortgages have been gaining favor with home buyers new home sales in Sept. (latest figs.) rose 13.7V0, following a 3-mo. decline.

Housing starts declined in Oct. (atest figs.) to a seasonally adjusted annual rate of 1,608,000 units, down 3.890 from Sept.'s 1,672,000 pace, but up 40.890 from a year earlier. permits increased 3.9V0 ta an adjusted annual rate of 1,565,000 units... multis rose 1.790; single-familyhome starts slid 7.ZVa.

Temecula Hardwsre & Lumber, a Lumber I companyo has broken ground in Temecula, Ca., for a new retail/wholesale facility to open next spring to replace the one destroyed in a $2 million fire in Sept..

The Beauqf of Red Cedarwith Built-in Fire Resistance.

Ifyou need to purchase treated cedar shakes and shingles, we understand ifyou're confused. There are more products on the market now than ever before. all wlth one liabel or another. However, to be certain of quality and an in-plant testing program that is second to nonepurchase witlt confidence from J.H. Baxter and our distributors.

Our class C and class B roofing systems are treated with NCX@ chemicals and carryan Underwriters Laboratories, lnc. label (U.S.). UL is the premier agency for product testlng and standards development. Their label is your guarantee ofproduct performance.

This is the label to ask forlook for itDEMAND IT.

Your Sights QUALTT

GALENDAR ,,ffi

DECEMBER

funerican Wood Preservers BureauIkc. 6, annual meeting, Sheraton Hotel, Arlington, Va.

Society of American Wood PreservenDec. 7{, annual meeting, Sheraton Hotel, Arlington, Va.

Lumber JillsDec. 12, Christmas party, Portland, Or.

Portland Wholesale Lumber AsociationDec. 16, annual Christmas party, I I : I 5 to 2:45 , Red Lion Motor Inn, Jantzen Beach, Portland, Or.

Phoenix Hoo-Hoo Club-Dec. 20, Orangetree Golf Club, Scottsdale, Az.

JANUARY

Lumber JillsJan. 9, meeting, 5:30 p.m., Westem Forestry Center, Portland, Or.

Budrow & Co.-Jan.15, annual show, 9 a.m.-5 p.m., lzl030 Gannet St., Santa Fe Springs, Ca.

Oakland Hoo-Hoo Club-Jan.17, initiation, Francesco's Restaurant, Oakland, Ca.

Phoenix Hoo-Hoo Club-Jan.17, initiation, Thunderbird Country Club, Phoenix, Az.

FEBRUARY

American Hardware Manufacturers Association-Feb 11-13, Winter Hardware and Home Center Show and Hardlines Conference, Las Vegas Convention Center, Las Vegas, Nv, Oakland Hoo-Hoo ClubFeb.2l,ladies night and crab feed, Pacific Fresh, Alameda, Ca.

Phoenix Hoo-Hoo ClubFeb. 21, Dobson Ranch, Mesa, Az. Builder Marts of America, Inc.Feb. 28-Mar. 1' l3th annual Independent's Days products & management services expo, Atlanta Hilton Hotel, Atlanta, Ga.

MARCH

International Hardwood Products Association-March 6-10, 28th annual convention, The Newporter Inn, Newport Beach, Ca.

National Home Center/Home Improvement Congress & Exposition-March 11-14, McCormick Place, Chicago, Il.

National Lumber and Building Material Dealers AssociationMarch 13-15, l2th annual Conference with Congress, Hyatt Regency Hotel, Washington, D.C.

Forest Industries Clinic and Machinery Show - March 21-23, Memorial Coliseum. Portland. Or.

Want to see your organization in print? Send us information including date and place on your next meeting, convention, or social event for the Calendar. Please make sure that we receive it st lesst six weeks rhead of the drte and be sure to include your name, address, and telephone number.

Wood Wins in Arizona

"The only time a masonry home is needed is when a homeowner plans to sit an elephant on the roof," begins an article in the Tucson (Az.) Citizen detailing a switch from concrete block to wood-frame construction in that area.

According to the article by homes editor Judy Kantrowitz, the switch from masonry to frame construction was "prompted by the lower cost of lumber and its better insulating properties." When energy costs skyrocketed "builders found they could fit more insulation in a wood frame home than they could in a typical masonry home."

One builder is quoted as saying that l0 years ago he built 8090 ofhis new homes with block but that now "8090 of the homes we build are frame." Another said it costs him about $2,000 more to build a masonry home and that he "told the masonry people, 'If you want to be competitive, you have to bring costs down'."

Furman Markets Particleboard

Furman Lumber, Inc., Boston, Ma., is now the major U.S. marketer of a new product manufactured by Malette Wood Products, Timmins, Ontario, Canada.

LAM-Panel, according to Bill Perry, Furman's industrial market representative, is a three-laYer, industrial-grade particleboard with an engineered wood hber core and a superfine surface that is ideal for laminating.

Although the product has many industrial applications, acncording to Perry, it is primarily used as a substrate for pre-finished paneling. It can be used as a replacement for lauan plywood as well as in furniture, cabinet, counter, mobile home and door manufacturing.

In the retail market it is an alternative to interior grades of sanded plywood, lauan plywood and hardboard.

Furman Lumber makes LAMPanel available in 4' x 8 ' sheets in three grades with thicknesses ranging from I /8 " to 3/4" Thicknesses up to 3/8" have a screened back. Sanding up to 120 grit is available on all thicknesses.

HOME GENTER MERGHANT BILL FISHMAN

acknowledge the women shoppers with the same respect as men. Nothing can turn off the woman shopper as much as a patronizing approach and the assumption that she's just a messenger for a male in the household.

Beverly Keene said it well in a letter to the editor entitled "I'd Like To Be An Equal Opportunity Customer":

11650

Place San Diego, Ca.92128

I T THEIR seminar session at the I\Vss1s1n Home Center show in Anaheim, Ca., Bill Boston and Gary Walsh of Ernst Home Centers, Seattle, Wa., told of a recent survey they had con-

ducted. They found that their stores appealed to women shoppers. Borrowing a phrase from the computer industry, they have tagged their stores "User Friendly" and are making even greater efforts to make their store designs and merchandise presentations more attractive to women.

Ernst is also training their personnel to

Quality and Appearance Are Impoftant

When it comes io studs you con count on our products io be omong the finest ovoiloble. All our products ore onti-stoin treoted ond end-woxed for weother protection ond to resist seoson checking. Avoiloble in Douglos fir ond white woods l "-6" x 8'.

"Bill, my husband, couldn't tell you whether the studs in our house are 16 inch or 24 inch on center. He doesn't know the thickness of the insulation in the attic, or the width of our windows or the BTU rating of our furnace. Neither do I. But, when he goes into a home center to buy paneling or ceiling tile, or a pine shelf for the laundry room, nobody asks him to come back with his father or brother or next door neighbor. When he needs information from the counterman, he gets it!

"Not me! Please understand. I'm not a women's libber, As a matter of fact, I like being treated like a girl. But, I do resent being regarded as inferior whenever I enter a lumber department.

"Why is it that every time I shop in a home center as a serious customer, I get treated like I was crashing the door at McSorley's? Appliance salesmen feel I'm capable enough to make a $200 to $1,000 appliance decision, my Mercury dealer is happy to sell me a $10,000 Cougar. But a lumber counterman looks upon me as an opportunity to 'Zing it to another dingbat .' Almost every attempt to make a major purchase of do-it-yourself material ends with a directive to bring in my husband. But I don't.

"I shop elsewhere instead. So do many of my female friends who have been intimidated by that superior being in the yellow jacket with the carpenter's pencil in his pocket. Jane, the condominium owner, Carol, the divorcee (who has used a radial arm saw), and Betsy, who attends the evening do-it-yourselfclinics, have all experienced the same "stop bothering me lady" attitude in the lumber counterman.

"I read every decorating magazine and "idea" publication I can get my hands on. I love to say I made it myself about things in my home other than my clothes. And frankly, when it comes to home decorating most men prefer that a woman make the decision as to color and texture. Yet every time we females are in the home center with the hot little plastic charge account plate that could mean a $200 or $300 paneling or ceiling or patio roofpurchase. the Archie Bunker behind the lumber counter concocts another inale question that prevents us from closing his sale.

"Believe me guysBill doesn't have the answers either, and if you take the same 20 seconds to explain the step-bystep instructions to me, you would make the sale, not the new kid working the lumber counter at your competitor down the road. But then, he hasn't had experience enough to know you can't sell buildine material to women."

NDER the recently signed Social Security reform bill, employer and employee payroll taxes will be increased from the present 6.70/o (to $35,700) to the rates shown below:

o Your wholesaler and his company and its people are your most important assets. Use your wholesaler effectively and increase your profits.

. If you can help your customers get money for financing, you get the order. Help people arrange financing on a home package. It takes time, but it's worth it and after doine it once or twice, it gets easy.

r Look at your stores. Clean them up. Sell the excess junk. Have a sale. Too many places are just too unattractive to bring in the trade.

o Develop incentive programs for your employees. If they sell more, they get more. It is that simple.

. Don't ever advertise that you are selling below cost. It makes you sound like a bad businessman. Tell them you sell it for less because "you bought it better. "

o Consider establishing a tradesman credit card system. Your customers will buy up to the limit.

By 1990 the rate will increase to 7 .650/o on a projected maximum wage base of $54,900.

John Walker, past president of Lowe's, Inc., a multibillion dollar lumber business in North Carolina and other eastern states, spoke recently on the challenge of making money in the face of hard competition and difficult economic times. He recommends the following:

Drop cash discounts. It takes guts to put a stop to it, but you have to realize that in most cases the cash discounts wipe out half your profits.

. Charge your customers for delivery. Lowe's bills FOB the warehouse and has a schedule for delivery charges. Their company gives the net price in town and the buyer has to pay the delivery cost.

o Use small ads with big numbers and low prices. They get about the same attention as a big ad with small numbers and cost a lot less.

THE REGISTRY Resorr Hotel in I beautiful Scottsdale will be the site of our 1984 annual convention. The dates set are from Sunday, May2fth through Tuesday, Nday 22nd. Mike O' Malley, president of Mallco Lumber & Building Materials, Phoenix, has been selected as convention chairman. From the ideas and events planned, the 1984 convention promises to be most enjoyable and rewarding- plan now to attend.

For a considerable length of time, the concrete block interests in the Phoenix market have been losing large shares ofthe residential construction business. Builders in both the Tucson and Phoenix areas have increasingly switched to frame construction. Recently, the local home builders association sponsored a meeting for their

new residential sales people to hear both the block and frame interests present papers about their respective products. Frank Stewart of the Western Wood Products Association appeared on behalf of the lumber industry and did an excellent job. A local home builder confirmed that due to the added costs for block, about 9090 of the new homes in Phoenix are of frame construction. This is certainly good news for the lumber business.

The State of Arizona Registrar of Contractors is proposing new rules and regulations concerning general and subcontractor bond limits. The ALBSA is opposing the action due to the inadequacy of much lower limits to provide needed protection for materials being supplied for residential contracting,

We at the ALBSA wish you all an enjoyable holiday season and happy and prosperous New Year.

CHUCK LINK executive director

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&VIEWS

lltE DON'T need you! This seems UU to be the attitude of many of the national suppliers toward local associations. Members of the association realize that when national suppliers pay dues in local associations across the nation the amount ofthe annual dues can amount to a large sum. What national suppliers fail to realize is the importance to the local retailer, who purchases materials from the regional office of the national supplier, in their being a member of local associations.

Lumber Merchants Association of Northern California '1055 Lincoln Ave. San Jose, Ca.95125

Bill Johnson

John Polach

Local association members feel much more comfortable when national suppliers are members of their local association. Retailers believe that there is a much closer tie with suppliers when both are members of the same association. The association is the common bond between them. In most cases where the supplier is not a member of the local association the retailer does not have confidence in the supplier.

The association as a common bond gives the retailer confidence because he feels they are all part of a brotherhood in an industry. The trust that develops returns many times over, in comparison to the annual dues in the association.

Retailers believe that when they purchase materials from a supplier who is a member of their association that the supplier will back them in the event of supply problems, and conform to a code of ethics. Suppliers who do not belong to local associations are frequently considered as outsiders whose ethics are questionable until the supplier proves otherwise.

Over a period of time a close tie develops between the national supplier representative and the retailers. They eventually become a part of the same industrial family with a rapport that places considerable trust and confidence on both sides. Our industry is one of the few remaining where a contract for lumber products worth several thousand dollars is consummated by a telephone conversation.

What concerns the retailers is the resignation by national firms from their local association. The retailers wonder if policies will change, whether they can continue to depend upon the word of the area representative,; whether previous verbal agreements will still be valid.

Yes, local dues for association membership in this association cost $140 per year but the benefits are returned a thousandfold because the local retailer appreciates the fact that the supplier is also an association member and believes in the same principles established by the retail members.

WHAT'S HAPPENING?

Keep us posted on your club or group's upcoming meetings. But be sure and submit them at least seoen weelcs belore the eaent to m,ake sure there will be time to list them in an issue in circulatian belore the big day lwppens.

Larry Hansen

Walt Hjort

Pete Cadenasso

Sonia Mastriana

Lill Bruccoleri

Susan McAtee

Kelley Asciutto and

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Yourneedsmay not be one of these 18x38's shown. But whatever your need we have a complete inventory of TIMBERS up to 52 feet!

Speedy Service on Quality IONG DTMENSTON, ROUGH DIMENSION, other DOUGTAS FIR items.

We have an ok year ahead

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run-up of lumber and plywood prices occurred in the first quarter of 1983, there quickly developed a "here we go again" attitude throughout the industry. However, subsequent interest rate developments brought matters back to reality and give us a more reasonable focus on 1984 expectations.

We forecast 1984 new housing starts will be about the same as the 1.65 level of 1983. Mortgage rates will have to come down another lVz to 2 points before that figure can be realiz-

ed. Unsold new home inventories are too large in most areas at the end of 1983 and these will have to move before builders resume activitv.

Story at a Glance

Housing starts at 1.65 level if mortgage rates dip 11/zo/o - 2o/o remodel and rehabilitation show promise no problem in product availability

The rehabilitation and remodeling market continues to show promise as more newly formed families become frustrated with mortgage demands. Those contractors, dealers and distributors servicing this segment should enjoy a good year.

Product availability should not be a problem as lumber and plywood mills largely regained their vitality in 1983. The cost of timber is a key factor in anticipating 1984 materials price levels since many manufacturers still face processing high priced logs contracted for during the most recent housing boom.

1984 will be an OK year and has an outside chance of becoming a very good one.

The system is made up of highly trained market specialists with years of experience in the softwood lumber industry. The system works fast and with complete follow-through. The system has coast-to-coast facilities so we truly know the entire U.S. market.

The system has an in-depth knowledge of the Canadian market as well, since wdre one of their largest lumber importers. The system gives you straight, updated information on all softwood species.

The system has a first-rate approach to shipping. Wdll ship your order the most cost and time-efficient way.

The system is making markets in all softwood species:

Canadian Spruce - Green Douglas Fir - White Fir - Western Red Cedar - Redwood - Western Hemlock - Ponderosa Pine - Sugar

Pine - Waferboard - Timbers

You can quote us on everything wdve said about the Furman System. Now... may we quote you?

S pecu lat i n g ftsFJJxffi r" o?

Woodland Ha - - s,iil6'Ha?f; Pro s p e cts

When planning next year's budget, look to Woodland for proven high-profit items.

O Sunshine Wood Paneling

Tongue-and-groove strip paneling, reversible, smooth or resawn surface.

Free display rack with initial stock order.

O DG Shelter Products

Complete line of prefinished moldings, ln a variety of popular styles.

O Pride of Portugal Cork Products

Rolled Portuguese cork, 36" and 48" widths.

O Perfect Round Dowels

Hardwood dowels. solid Ramin wood 1/q" to 1 %" diameter. Display rack with initial stock order.

!

O Gork, Chalk, and Bulletin Boards

Shrink-wrapped with colorful eye-catching inserts.

O Royal Oak Doors

Attention-getting display with working model door, wood samples, and shelving to stock your own assortment of stains, varnishes and lock sets.

Woodland. . .our name means qualiU and sel*tion for your customerg and more prcfits for you.

Selling more in'84

lN 1983, redlwood sold well and those involved at all levels enjoyed the profits. We can look forward to similar gains next year.

The election year, as much as anything else, creates pressure to maintain the status quo. Analysts predict interest rates will remain steady, even if it means inflation inching up. We can expect 1.5 to 1.6 million housing starts. Ten years ago, 1.5 million housing starts meant the building supply business was flourishing. Now it is different. Houses are smaller. Prefabrications. modular housing and new synthetic materials

have affected the sales patterns. Commercial construction is changing as industries leave urban centers and relocate in low-rise suburban offices. All signs indicate redwood will be in an ideal position next year and throughout the '80s.

In 1984, we can expect to see more sales to the stronger markets-remodeling, light commercial and custom homes. Redwood garden grades will continue to be a leading seller to the outdoor living markets. Strong redwood sales are based on several facts. Redwood is a luxury product with utilitarian benefits. Its versatility makes it a leading seller to multiple markets.

In 1984, the California Redwood Association will mount three individual but co-coordinated product campaigns. One campaign targets the

architectural market promoting the use of redwood architectural products. A second campaign directed to the outdoor living markets zeroes in on the homeowner and landscape arclritect. The program began last year to promote the traditional luxury redwood products used in fine homes an{ commercial applications will continue. These three campaigns will generate substantial demand for all redwood products.

Story at a Glance

Election year to inf luence economy. . interest rates will be steady 1.5 to 1.6 million housing starts stronger sales in remodeling, light commercial & custom homes.

Building materials outlook bullish

ETTER

times lie ahead!

It was difficult to remain an optimistthrough the years '80-'82. However, those gloomy years are behind us. Now it's an established fact that business has been a lot better in '83, and a lot of us expect a comparable increase in '84. Our own company is bullish about the year ahead, and here are some of the reasons:

(1) There have been wonderful developments in the inflation rate area during the past year. For example, the rate for '83 will come in fairly close to 4s/0. And based upon everything I observe and read, the rate in '84 will probably stay under 5v/0.

(2) As a result of our recent "depression years," wage pressures have definitely weakened and will probably remain relatively soft. Hopefully, the escalation of wages, on an annual basis-come rain or shine-has ended for the immediate period ahead.

(3) Interest rates have come down a little, have stopped jumping up and down, and will likely continue to soften in the year ahead. Sure, they're still high by historical standards, but who can forget those 2090 levels in the spring of 1980!

(4) Housing starts in 1982 fell to their lowest level since World War II. At the beginning of '83, most predictions were for about 1.5-1.6 million starts in '83. It now appears that the final '83 total will be close to 1.7 million-an increase of more than 6090 over the previous year. We certainly can't knock that! Pressed for an exact figure, I would bet that '84 starts will be a little

higher than they were in '83-say 1.7-1.8 million.

(5) And let's not forget the demographic statistics. It's a fact that there will be approximately 12

(Please turn to page 43)

Story at a Glance

Lower inflation. .weaker wage demands. softer interest rates. . satisfying of housing demand behind schedule. tax exempt bonds & variable mortgage rates can ease pinch. . starts may be as high as 1.8 million next year.

THIS IS NO ORDINARY

A new chemical formulation has permitted the development of a transparent wood finish by Penofin which will preserve and enhance the natural grain and beauty of wood while protecting and sealing it from the destructive forces of our environment.

The linseed oil based formulas that are still prevalent in the industry today date back to 17th Century Europe. These archaic mixtures were long overdue for a change in our technological world of science and chemistrv.

UV Protecllon

A remarkable combination of Brazilian Rosewood Oil, transoxide pigments (strategic metals ground to microscopic size), a leadless dual catalytic system and a mildewcide build an effective transoarent finish that filters more than 90 percent of the sun's ultraviolet rays.

Penofin's Oulsianding Fealures

Penofin seals the wood and creates a microoorous finish that allows moisture to enter and exit only as a vapor. This prevents rapid expansion and contraction of the wood, which is one of the major reasons for warping, twisting and cracking.

Penofin dries quickly dust f ree and can be applied to fresh, green wood. Penof in seals the nails and prevents them from bleeding.

Penofin does not contain pentachlorophenol or any carcinogens.

Penofin has available special exterior transparent finishes for redwood, cedar and other soft woods. Penofin also offers an interior line for hardwoods and a durable Marine oroduct for the boating industry.

Whatever your wood finishing needs are...Penof in will keep your wood f resh and bright.

Be Good to Your Wood

Ouick Ouotes

A random sampling of ideas and opinions

"The short-range economic outlook is more encouraging than it has been for the past two or three years. Yet, while our markets look positive over the next few months, we are concerned about the potential effect of projected federal deficits on business later in 1984."

Richard B. Madden, chairman of the board and chief executive officer

Potlatch Corp.

San Francisco, Ca.

". because of a number of forces, interest rates could be on the rise as early as the first half of next year, bolstering the dollar in the currency markets."

Gary Schlossberg, senior domestic economist

Wells Fargo Bank

San Francisco, Ca.

"I believe that Waferwood will eventually replace much of the plywood now produced from public timber."

Harry A. Merlo, chairman & president

Louisiana-Pacific

Portland, Or.

"This recovery is rock solid. It isn't a bit fragile. It will continue through 1983 and through 1984."

Donald Straszheim, chief economist.

Wharton Econometric Forecasting Association

"What we need more than anything else is a gradual decline in interest rates-if for nothing else but to make sure that the economic recovery continues."

National

"Going into the fourth quarter, business executives' confidence could not be higher. A Conference Board sampling of 1,500 chief executives across the country measured business confidence in the third quarter at virtually the same record level posted in the board's secondquarter survey."

Business

"All the economic and political factors are in place for lower interest rates next year."

Felix Beck, chairman

Margaretten & Co. Inc.

Perth Amboy, N.J.

"Wood tariffs are a trade friction issue because raw material enters your country free of duty while 12 to l5q0 tariffs are maintained on processed products-a major barrier for such basic commodities and a high rate compared to either U.S. duties for similar products or Japan's average rate for all products of 3.40/0,"

National

"Whatever the short-term swings may be, we continue to believe that the outlook for housing, and for wood products, over the next one to two years is positive."

COMPETITIVE PRICING

Weyerhaeuser prices are always competitive. You can count on it. You can also count on consistent quality of products at the best value in the industry. Day in and day out.

RELIABLE DELIVERY

When Weyerhaeuser people give you their word, you can rely on it. All orders will be shipped when promisedon time. No excuses. lf a problem does occur, we will go the extra mile to satisfy our customer.

CONSISTENT QUALITY

Weyerhaeuser-produced products are measured against rigid quality control standards.

We will not cut corners. You can rely on Weyerhaeuser products to meet your performance expectations. Products purchased for resale by Weyerhaeuser will meet

WEYERHAEUSER CUSTOMER SERVICE CENTERS:

ARIZONA

Phoenix: (602) 269-3541

CALIFORNIA

Anaheim : (7 1 4) 7 7 2- 5880

Fontana: (7 1 4) 87 7- 6100

Fresno: (209) 486-6221

Hayward: (415) 786-1700

the same demanding requirements, lf it comes fromWeyerhaeuser, you can counton its quality.

DEPENDABLE SERVICE

Weyerhaeuser Customer Service Centers are conveniently located to meet the supply needs of our customersquickly and accurately. We work with our customers as partners, anticipating their needs and staying ahead with new products and new ideas. And ourTrading Centers are primed to give you prompt service on all direct mill needs.

PEOPLE WHO CARE

You will always get a quick response, accu rate information and insightful cooperation from the people of Weyerhaeuser. We are dedicated to solving customer problems, and working hard to be the pref erred su pp I ie r. You r res pect s Weyerh aeu se r's top priority. We will never take it for granted.

Long Beach: (213) 436-8475

Los Angeles: (213) 748 - 5451

Sacramento: (916) 371 -1000

San Jose: (408) 297-9451

Sepulveda: (213) 894-4015

COLORADO

Denver: (303) 433-8571

OREGON

Eugene: (503) 461-0500

Portland: (503) 646-061 1

UTAH

Salt Lake City: (801) 972-5525

WASHINGTON

Seattle: (206).854-3550

V9eyerheeuser

Nu Directio?os

(Continued from page l3)

nesses rise and fall in relationship to the cost of money (interest rates) and the available supply of funds to a housing-conscious public. As we look ahead to 1984 and perhaps 1985, no threat is more frightening to the current financial climate than the plans by the federal government to finance the sizable federal deficit. That is the Number One concern for all American businesses, but particularly for our industry. Be wary of increased federal borrowing. It could choke our recovery in short order.

The emergence of warehouse retailing has startled all segments of the industry. Several new public companies have carved a sizable share of market in the South during the past year. It is estimated that almost all key retail markets in the country will have one or more of these large units operating by the end of 1984.

This is not to say that conventional retail dealerships and home centers with sound financial planning and aggressive merchandising will not be active participants in the 1984 marketplace. The recession survivors will set a faster pace and compete more tenaciously for a growing building material market. Share-of-market figures will shift some, and the increases will go to the creative companies who have shrewdly laid plans for increased sales and profits.

1984 will be a good year for the aggressive, creative, resourceful retailers and wholesalers who view the post-recession building material marketplace as the opportunity of their corporate lifetime, a chance to move ahead in their respective trading areas.

OUTLOOK BULLISH

(Continued from page 35)

million more 25-34 year olds in 1985 than there were in 1965 and 9 million more than there were in 1975. The basic demand for housing is continuing to grow! At the beginning of this decade, reliable forecasts predicted a need for an average of l.9 million housing starts in the decade of the '80s. We're way behind schedule.

(6) The use of tax exempt bond offerings by more and more states to provide additional funds for affordable mortgages continues to grow. Hopefully, this sensible aid to the housing industry will continue. The benefits to a lot of different areas outweigh the negatives.

(7) We've been hearing about variable rate mortgages for several years with few takers. It now app@rs that there was a significant change in 1983, meaning that more and more buyers are accepting variable rate mortgages. It helps them qualify for the home they want, and they're confident that their increased earning power in the future will handle the higher mortgage payments if the rates head in the wrong direction.

In conclusion, we're predicting continued growth in both sales and profits for 1984. The increases won't be dramatic, but we think that the trend will definitely be upward. Let's all hang in there, for better times lie ahead!

Lumber Jills Turn 30

Lumber Jills, an organization for women in the lumber industry, celebrated 30 years as a club in October in Portland, Or.

Members had a lot of fun preparing for the event which included being on the local television's A.M. Northwest program. John L. Blackwell, executive director of the Western Forestry Center and last year's "Boss of the Year," was among the 42 attending.

Past presidents at the observance included Gloria Perrin (1960-61); Peggy Wetzler (1971-72); Marion Cowan (1972-73); Virginia Hannah (1973); Jan Moran (1977-78); Mary Vail (1980-81); Sandy Sauerbrey (1981-82) and Marilyn Shroll (1983).

The club is open to all women interested or employed in the lumber industry. Those wishing further information may contact Marilyn Shroll, membership chairman, Pacific Wood Treating Corp., at (206\ 887-3s62.

TIMBER SIZER PRE-EABRICATION

D.F. GRAPE STAKES REDWOOD & D.F. LATH

TIMBERS

From cutting a wedge to pre-fab'd crane pads or mine shafts. Angle cut, cross cut, drilling, dapping-We'll do them all to customer specification.

Bracrrt Internationd

Drawer 4779, Arcata, Ca. 95521 707-822-3648

SEASON'S GREETINGS

rrr [!'r. illL iilil,rl|' llr( i.tllt('Ililir'. it\\ilitl|-r btrrcr : \\lt() ullcncl tltc \\ irrter \aiiortal Ilurcllrarr,- & Ilornc ('clttcr. Shor,i ancl Harcllincr ('Lrrrlcrcrrcc in l.as Vcgas, Nr,., Fcb. ll-ll, ir \\'as annr.runccd b1, the ('ahncrs [-.rltosition (irorrp, the shou ntalla!.cntcnt.

I hc shou uill ploriclc an opportunil\' lor ntanr titousands ctf'buyr--r's rrho nercr ha\r. ailencicd a natioruLl crerrt in the strrnrncr lo til1g11a1 ,1'a rrinlcr sholl'in l-us Vcuas becausc it is closcr.to thcir lrasc ol rtpcrations, thc slrou managcntcnt 1'lttintcd out. \lan) hornc centcr' proclucts, uhich cotrlcl rtttl be shoun at the surnntcr sltrtu because ol lack ol crhrbit spacc. u ill be highlightccl.

An cducalionul proerant rnclrrrlirrg a series ol'eight seminars ancl nra.jor adciresscs has bccn plannecl b5 rhc Amcrican I lardu arc \,lanul'aclrrrcrs A..rreilrti,rrr rr'1,1r thc ptrrti.ilrlrtitrrr and assistancc of thc ('alil'ornia

Pacil'ic Sou1hu est Harclri arc ,\ssociation ancl the Souther.rr \\'ltolesalc Hardr'vlirc Associat ion.

Who's the Likely Crook?

The Iong-tcrnr enrplovcc learns 1hc built-in lr,eaknesscs and loopholcs rl iIhin a compan1,, ancl is ntorc Iikclr trr bc responsible litr itrtcrnal thcfts than tlre lee erttlr ltirr'tl Pt'r'.on. :ee urilr prolcssionals inclicatc. A solulion to this problent coLrlcl bc backgrouncl inlestigations ol' "trusted" cntplrtvccs to see i1- lhcv ha',c obvious I'inancial problcnrs that rnight causc thcnt ro steal.

RECOVERY THREATENED (('tttt I irtttt'tl J n rrt Jtttgt ),\' 1

aggregate "does nol change our policl"one iota."

NAHB is forecasting 1.68 million housing starts this 1'ear and 1.69 million in 1984. Homc builders arc currently in the nridst of a major cam;raign to alert the public to th e grorr ing possibility of a rcccssion in late 1984 or early 1985 unless Congress and thc Administration take action to reducc the federal deficit.

Larry Kelson is mgr. of the new wholesale dept. at Morgan Staley Lumber Co., Inc., Sherwood, Or., according to Phil Kelson, pres.

John Shaklin has been named chief financial officer at the HomeClub, Norwalk, Ca.

Martin R. Bocola has been promoted to senior v.p. of operations at Builders Emporium, Irvine, Ca.

Dan Aulwurn is the new buyer of hardware and automotives at NeimanReed's Lumber City, Van Nuys, Ca.

Ben Philan is now mgr. of the Sequoia Supply D.C. at Wilsonville, Or.

Paul Williarns is succeeding Louis Huettl who has retired as sales mgr. at Winton Sales Co., Minneapolis, Mn., after 47 years in the industry.

Pat Murphy is now a trader at Continental Forest Products Inc.. Lake Oswego, Or.

Bill Trammel is new in marketing at Idaho Timber Co., Boise, Id.

Richard Miller is now with Boise Cascade at National City, Ca.

Frank Brown, $ales mgr. at S.D.S. Lumber Co., Hood River, Or., has retired after 18 years.

Gene Walten has been appointed gen. sales mgr., lumber and plywood, at Willamette Industries, Albany, Or., according to Richard E. Dlvis, v.p., sales and marketing,lumber and plywood sales div.

H. P. Newsom has been elected pres. of the Forest History Society, Portland, Or. Alfred X. Baxter and Harry E. Morgan Jr. are new board members.

Glenn Miller, ex-Noble Lumber, San Rafael, Ca., is now with Weyerhaeuser in San Jose.

Dean Matthews, v.p. of Relta Gray Associates, Seattle, Wa., is back from Washington, D.C. where he was a key speaker at the annual meeting of the American Wood Preservers Institute.

Tom Kopydlowski is now sales mgr. at the Universal Anchor Div. of the Panel Clip Co. in Hayward, Ca.

Robert Blum is now mgr. of the Country Hills Ernst Home Center in Ogden, Ut., according to Bill Boston, v.p. and gen. mgr. of Ernst Home Centers, Don and Florence Philips, Philips Lumber Sales, Thousand Oaks, Ca., celebrated their 45th wedding anniversary at Hana on Maui, Hi., last month. Don also spent some time in Sutherlin, Or., setting up a new lam beam distribution center.

John R. Forrest is the new chairman of the National Forest Products Association; Robert F. Higgins, lst vice chairman; Richard lV. Buchanan, Jr., 2nd vice chairman and treas.; Donald R. Deardorff, past chairman of the board; William Shields and W. Michael Robson, chairman and vice chairman of the product div.; G. R. Swift, Jr. and John J. Dillon, chairman and vice chairman, private timber div.; John C. Hampton and James Bibler, chairman and vice chairman, public timber div.; Charles W. Bingham, K. David llancock, W. Lee Robinson and A. Milton Whiting, atJarge members.

Rob Fallow, Fallow Forest Products, Lake Oswego, Or,, is now the exclusive sales agent for Horizon Forest Products, Carson Wa.

John E. Xnepp is the 1983-84 chairman of the Western Pallet Association; Thomas F. Turner, pres.; Mar.ley B. Peterson, v.p., and Norm Reed, sec.-treas.

Dave Rogoway and Dennis Hudman, American Plywood Association, Tacoma, Wa., took a promotional trip to Santiago, Chile, that included building a demonstration house at a large trade fair held there.

Bill Carter, Carter Forest Products, is back in Ukiah, Ca., after a l0 day Hawaiian vacation.

We know lumber Let us help

Whether your job is as ornate as the famed Carson Mansion in Eureka, Ca., or as plain as a dog house, we have the experience and facilities to provide you with the unusual and uncommon in lumber, moulding and millwork items, as well as the ordinary, in any quantity you need. If we don't have it, we can make it. Just ask. A In Redwood, Union Forest Products has MS and pattern lumber, architectural patterns; 545 ancl patterns; mouldings, mixed loads and units available LTL, T&T and rail. A Also please inquire on clear Douglas Fir and Hardr.voods.

John Blatchford and Gordie Martin, Martin Forest Products, Healdsburg, Ca., have visited Texas on business.

Bill Young is replacing Mike Wolk as lumber buyer at Ganahl Lumber, Anaheim, Ca.

Darrell Clapp, Neeley-Nelson Lumber Co., Medford, Or., was nearly stoned to death by some pot farmers while looking for wild flowers on a recent trip to Pistol River, Or., according to occasionally reliable sources'

Harl Crockett, Hexberg Lumber Sales, Wilmington, Ca., sPent a month on a Nile River cruise and Kenya wildlife safari with a stop in London on the way home.

"Red" Houghton, mgr. of Precision Pine Co.'s Garden Grove, Ca., office, has visited New England and the Mid-West. Precision Pine's Hq. is Lakeview, Or.

Al Aarhaus is filling the newly created position of merchandising and training mgr. for Simpson Doors, based in San Jose, Ca., and reporting to Ed Young, marketing and develoPment mgr., Seattle, Wa.

Ronn Cook is a new outside salesman at Liberty Hardwoods, Santa Ana, Ca., according to Larry Knox.

Mike Jones is the new mgr. at the B Mart Home Improvement Center, Idaho Falls, Id.

Merlyn Jolley, Jolley Building Supply, Shelley, Id., won the $50O early registration attendance prize at the National Lumber and Building Materials Dealers Association convention in Phoenix, Az.

Roy Van Winkle is now mgr' of the Brickyard Emst Home Center in Salt Lake City, Ut., according to Bill Boston, v,p. and gen. mgr.

Gary Hart is now sales mgr. of the OrePac distribution warehouse, Tacoma, Wa., according to Bob Vandewall, gen. mgr'

Craig Kincaid. Robert S. Osgood, Inc. Los Angeles, Ca., has just been in the Philippines on a two week business swing.

Bill Trammel has joined Idaho Timber Corp. Boise, Id., in marketing.

James L. Lang has been Promoted to mgr. of the industrial div. of the Palmer G. Lewis Co., Auburn, Wa. Jeff Aiken is the new Kenmore, Wa., branch mgr. Jim L. CapPoini is now PGL div. mgr.

Jim Warren is the new mgr. of the Hodge Forest Industries, Inc. remanufacturing plant in SPokane, Wa., according to Jlmes A. Hodge' president. Kurt Batey is the new mgr. of the Boise facility; Bill Barrett' new corp. sales mgr.; Ed Bloom, new mgr. of the SandPoint, Id., sawmill. John Cole. John T. Cole and Associates, Beaverton, Or., has been in the San Francisco Bay Area.

Paul Martin, outside salesman, Mariners Forest Products, Santa Ana, Ca., and Paula Morgan were married Nov. 12.

Gary L. Connolly has joined Stimson Lumber Co. as assistant sales mgr., according to John Dimeling,sales mgr.

Mike Stewart is now a sales rep for West Coast Plywood, Azusa, Ca. He is exRobert S. Osgood, Inc., Los Angeles.

Michael O'Malley, pres. and gen. mgr. of Mallco Lumber & Building Materials, Phoenix, Az., will be chairman of the 1984 Arizona Lumber and Builders Supply Association convention at the Scottsdale Registry Resort Hotel, May 20-22. Dave Mason, Bill Herman' Bill Ray and Ray Wells are on his committee.

(Please turn to page 48)

PERSONALS

(( otttittuetl Jrutnt prcvious page)

Donna Kohler is the new wesrern transportation mgr. for Furman Lumber, Portland, Or., according to Jack Rowan, exec. v.p. and mgr.

R. L. Crutchfield is the new chairman of the Hardwood Plywood Manufacturers Association; Clifton R. Jones, vice chairman; Clint Ludeman, immediate past chairman; Maurice Trusler, Diane Montoya, Robert T. Renfro, Marcel Lafleur, directors; Stephen C. Floyd, Les Levin, Clyde Ratcliff. William llavidson, Brad Mills, Edsel Adams, Andy Boyce, Jack Richter, Don Bell, div. directors; Clark E McDonald, pres. & sec./treas.

Hugh Mungus and l-reddy Fungus, Mungus-Fungus Forest Products, Climax, Nv., have instituted a new sales slogan: "You Can Buy Better, But you Can't Pay More." This replaces their earlier company slogan: ,,If It's In Stock, We've Cot lt."

Eugene L. Walters is now gen. sales mgr., lumber and plywood sales div..Willa_ mette Industries, Inc., portland. Or.. according to Richard E. Davis, v.p., lumber and plywood sales and mir_ keting.

Hanks Silverheels Keller is now in sales at Hodge Forest Industries. Inc.. Boise, Idaho.

Frieda Smith has joined Martin Forest Industries, Healdsburg, Ca., as comp_ troller and bookkeepcr, according to Garl Malfatti. v.p.

Ed Young has been named marketins and developmenr mgr. lor Simpson Timber Co.'s door div., McCleary and Vancouver, Wa., and Hank Ricklefs, general sales mgr., according to Bill Ruddick, gen. mgr. E.C. ..Corky" Madsen, product development mgr., Seattle, Wa., and Al Aarhaus, mgr. of merchandising and training, San Jose, Ca., will reporr to him. John Sleighter, assistant sales mgr., panel doors, Seattle, and pete Dempsey, Western sales mgr., Vancouver, Wa., will reporr to Ricklefs.

Steve Plummer and Dennis parker have joined Western Timber products, Inc., Midvale, Id.

Simcoe Chapman, sales mgr. at Chapman Lumber Co., Portland, Or., is retiring after 38 years. Steve Walsh has joined the sales sraff.

John L. Crawley has been named pres. of Genstar Lime Co., San Francisco, Ca. Cooper Chitty has joined Cascade Empire Corp., Portland, Or., in lumber sales, according to Ray B. Haroldson, pres. Larry R. Clem is new in waferboard sales.

Kenneth M. Olsen has been appointed controller of Southwest Forest Industries, Phoenix, Az., according to Raymond P. Elder, senior v.p., finance.

Kristine Adams is now contract sales mgr. at Santa Cruz Lumber Co., Santa Cruz, Ca.; John McDonald is succeeding her as mgr. of the company's Felton operation.

Peter and Barbara Kepon, Arcata Redwood, Arcata, Ca., and Greg and Mary Kay Lambert, Simpson Tmber, vacationed recently in Puerto Vallarta, Mexico.

Ken Van Nortwick is now with the Hodee Forest Industries trading group, Boise, Id.

on delivery costs How you can save G; a,

This month we continue publishing the answers to the Delivery Practices Questionnaire presented in the October issue as well as in the National Lumber and Building Moteriol Dealers Association's dealer services workshops at their convention.

Lynch reports that there ore no right or wrong onswers. The whole idea is to let everyone answer for themselves what is going on in their companies and compare thst with the answers of others including our delivery expert. The answers to questions I-3 were printed in the November issue-ed.

(4) Do you have personal knowledge of a written list of responsibilities and duties set up for whoever does the dispatching in your company to follow. If you operate, as most do, you answered "NO. " Many respondents will answer that it is not in writing, but everyone knows what to do. Another classic rebuttal is that my people do not need an exit sign to know what to do with the door. Whether it is generally recognized or not, the facts remain that no sale is complete until delivery is made and delivery is demonstrably costing the

building material dealer about 2090 of his daily operating expenses to execute. Published figures, when looked at closely, indicate that sales that are delivered account for about 5590 of all sales. A "NO" answer means that by word of mouth is how 20s/o of the daily expenses and the lion's share of sales are being managed.

(5) Do you use, or know of, a load management system used by your company to insure effective load building, routing and dispatching?

"You must be kidding! We service our customers and get them what they want when they want it. It is our business to get the job done. What system is needed to go from Point A to Point B and put stuff on a flat bed to do it?"

If this was your reaction and your answer was "NO," you are in the majority. Most dealers answer "NO." Tests and evaluations show that this same "majority" historically and consistently send

(Please turn to page 56)

In California (800) 582-3950

Outside California (805) 833-0429

RECOVERY THREAT

(Continued from page 15)

deficits will slow the recovery as the federal shortfall will prevent interest rates from falling. Others, representing the supply siders who in the past maintained tax cuts would cause the deficit to disappear, can now claim that debt doesn't matter nor does deficit spending cause interest rates to stay high. An explanation as to what is keeping money rates high, if it is not the deficit, has yet to be forthcoming.

With a year to go before the 1984 elections, it is doubtful the administration will reverse its stand in the lowering of personal tax rates, which probably helped in lowering the unemployment rate. The Federal Reserve will have to cope with debt at least until 1985.

No doubt there will be risk involved with consumer price inflation as the fed has to decide what the proper rate of money growth should be. Reserve requirements for banks will be altered in February causing some additional confusion in interpreting money numbers and their influence on interest rates. But in any event

1,600,000 housing starts will probably be initiated.

With such a scenario we must recognize the situation of our economic environment and know what needs to be done, and that in fact we are doing it. We cannot ignore recurring problems such as credit quality, abrupt changes in the structure of our market, and the heavy burden of investing as all businesses become more capital intensive. Companies will be facing higher costs of both material and overhead. These higher costs must be covered by expense reductions and additional sales growth, by studying and developing an ability to deliver the product mix most appropriate to a given local market place.

May health, happiness and good fortune shine on you and yours throughout this holiday season and the coming year.

Feds Hit Asbestos Policy

Denver, Co., based Johns-Manville, now called Manville Corp., has been accused of hiding the facts about asbestos dust from its workers.

The Justice department has charged that the firm knew it was endangering the lives of World War II shipyard workers by exposing them to asbestos dust. In addition, the feds charged "it was Johns-Manville's policy not to tell its own workers of diagnoses of asbestosis until they became totally disabled."

The charges were made in response to a suit by Manville seeking government payment of more than $950,000 of the legal costs and awards paid by the firm to former workers who contracted asbestos-related diseases.

Western Wood Exports Climb

Western wood exports for the first six months of '83 gained in the Western Hemisphere, Europe and Oceania and declined in Asia in comparison to the first half of 1982.

Softwood exports overall were 930,237 mbf, up 690 from 1982 first half exports of 873,956 mbf. Exports to Western hemisphere countries were l69o ahead of 1982 with 344,622 mbf. Canada's total for June was 53,763 mbf compared to 19,930 in June 1982 with a first half total of 233,209 mbf compared to 141,054 mbf in '82.

Mexico has imported only a third of the first half 1982 total while other Centrd American countries are ahead of last year's figures.

The United Kingdom and Italy have increased imports raising Europe's 127,897 mbf to 150,267 mbf. Oceania countries including Australia were importing 3990 more than last year at the half way mark.

20th

N.M.;

Mentink,

Allen,

Lumber

ducers

Although our name says

we

DELIVERY COST

(Continued from page 5'1 ) trucks out on deliveries 6O9o empty. The practice is both prevalent and costly.

(6) Does your company charge for hand placement of items like shingles and wall board, or picking up materials for credit?

"No, we just price our merchandise three ways-take with or pick up, delivered and dumped, and delivered and placed." If you are with the majority and say "NO," you should know that by actual count it costs about 7s/o to deliver and dump and about l4v/o to deliver and place on the average, but a basic simple delivery that is dumped costs most dealers about $35 to make. Therefore, if the merchandise margins do not produce about $35 more, or a total of $70, you will be losing money.

Picking up merchandise is a reverse delivery without benefit of a yard crew and/or a forklift and is likely the single most expensive function in deliverv.

(7) From existing company records could you state how much in sales was delivered, at what cost, and in how many stops (deliveries) last year?

Once again the typical answer is "NO." This is one of those crawl, walk and run situations. Historically, the industry's accounting practices don't even include identification of delivery costs on operating statements, much less setting up the methodology needed to capture the data necessary to determine the costs. Some record "stops" and some know the value of those stops. The crying need to know is demonstrated by the knowledge of those who have the records to provide it. One study done over a one year period with seven yards indicated that almost 4090 of the deliveries each year were under $300 each. They averaged $120 each in value, or sales dollars, to the companies involved. The costs per stop of these deliveries averaged over $50 each to make. Could your lack of decision making information be similar?

Annual Hardwood Meeting

The Western Hardwood Association will hold its semi-annual meeting in the Portland, Or., area in May, Paul Meyers, United Forest Products, and Ken McCoun, North Pacific Lumber Co., in charge.

Marvin Noble, Noble & Bittner Plug Co., was elected president at the annual meeting in San Diego, Ca., Oct.27-28; Ed Mason, Great Western Lumber Co., vice president,and Meyers, treasurer. Jack Lundberg and Bill Nicholson, Cascade Hardwood, were elected to the board of directors.

Dave Walther, Simmons Lumber Co., and Don Reel, Reel Lumber Co., organized the program which included Joseph A. Wahed, vice president and chief economist, Wells Fargo Bank, and *Iimmy Weldon, tv personality,as speakers. Reg Justus, JustWood Forest Products Co., and Noble shared first and second place in the annual membership contest.

When sending in a change ol address please include zip code on borh oltl and nev' addrisses ond either the old label or rhe inlbrmation from it. Thanks!

BEST BOSS IN THE BUSINESS

If you find use for this letter in your magazine I would appreciate it. It is about a man I respect very much, You may change or correct words but don't lose the meaning.

Thank You, Don Wallace Myrtle Ave. Lumber

P.O. Box 2330 Monrovia, Ca. 91016

Norbert Bundschuh has been in the lumber business for 40 plus years, He's been a leader in many ways to myself and other employees. He's one of the nicest persons I've had the pleasure of working for. He has led the way for me to become a better salesman, and to care about the customers I help. He built his business on hometown values and the best service around. There's many things I could say about this man, but everyone who knows him already knows the goodness he has shared. He was forced to retire due to illness; he will be missed by everyone that knows him. No one could ever ask for a better boss than Norbert. Norbert, thank you, you're the best boss I ever had.

A.fter a series of serious physicol problems, Norbert has left the hospitol ond is now in o rest home, Friends and well wishers may write him c/o Myrtle Avenue Lumber Co., 123 W. Pomono Ave., Monrovio, Ca 91016.-ed.

NEW PRODUGTS

and selected sales aids

No Kickback On Chains

Unchromed saw chains introduced by Townsend Saw Chain Co. come in 15 %" semi-chisel and low contour styles and sizes.

All feature a patented Tri-Raker configuration that reduces kickback energy levels by 8090 without affecting cutting or boring performances.

The product is blister-packed with an information card and can fit 8590 of the popular selling chain saw models.

Free Standing Stairs

Artistic Stairs & Handrails, Inc. have developed three prototypes of spiral and winding stairs.

A 5' and a 6' diameter spiral as well as a 90 o winding staircase with

For more information on New Products write The Merchont Mogozine,4500 Campus Dr., Suite 480, Newport Beach. Ca. 92660. Please mention issue date and page number so we can process your request faster! Many thanks!

6' and l0' outside radius come preassembled to be installed on site without the need of a stair framer. The all wood free standing units have been approved by city building codes are featured in several home developments.

Classy Clean-Up

The Anystream line of showerheads from SpeakmanCo. includesa water-saving option, assorted spray patterns, non-stick Lexan plungers and ball joint swivels.

The manufacturer has incorporated a special wall poster and dealer incentive packages in its "World Class Showers from Speakman" promotions.

Inside Out

Gypsum board and extruded polystyrene foam are bonded together to form the Styroliner wall panels which may be fastened to studs, furring strips or directly to masonry walls by conventional methods.

With tapered edges for taped joints, the Vz" gypsum board is backed with polystyrene in thicknesses of Vt", 1", lV2" or 2". The standard size is 4' x 8' although other sizes and thicknesses are available.

The product is manufactured by Spirex Structures Inc.

lnsulated Exterminator

A thermal insulation that kills insects has been developed by HJH Chemicals, Inc. In-Cide is said to be the only insulation approved by the Environmental Protection AgencY to kill insects.

The active ingredient is RelYon zl00, a manufactured chemical compound in the form of a white powder that is fused with the termal insulation fibers.

Swanky Swan Fixtures

Harden Industries has expanded their bathroom fixtures top brass collection with a new swan design. The product is available in wide spread, center set, bar models and a wall mount tub filler. It is complemented by matching accessories. In several finishes, with solid brass construction, the lixtures have epoxy protection and %-turn nonrising, washerless disc valves backed by a lifetime guarantee.

Bathroom In Bloom

Six hand-painted floral designs are offered by Harden on porcelain handles, escutcheons and accessories for their collection of Top Brass faucets.

In addition, colored porcelain handles, escutcheons and accessories to match famous-maker tubs and sinks are available with hand-painted floral designs.

All feature Vt-turn, non-rising, gem-hard ceramic disk valves for perfect fluid flow control and handle alignment. The faucets are made of solid brass and are electrostatically coated with durable, polish-free Epoxy-Glaso finish.

Updated Hammer

Estwing Manufacturing Co.'s shingler's hammer now features a retractable cutting blade, a heavier head and exposure settings for both standard and metric shingles. Blades are replaceable.

Tool Adaptability

The new Stanley Workmaster ratchet screwdriver has a mechanism that allows the handle to ratchet back after each turn while the blade and tip remain stationary. It differs from a spiral ratchet screwdriver in that it is turned with a twist of the wrist.

The three-position ratchet switch provides ratcheting action when driving a screw, reverses the ratcheting action for loosening screws, and locks the handle on the blade for use as a standard instrument.

The screwdriver has a forged hex socket, enabling a user to change bits for various screw heads, including Torx screws. The socket can also be adapted for use with inch and metric sockets. The bits can be kept in the screwdriver handle which can hold eight bits and is closed with a screw cap. The handle has a triangular shape that fits the fist and provides maximum turning torque.

The shaft is solid steel and chrome plated. The ratchet mechanism housing is frtted into the handle in a triangular configuration to

eliminate the possibility of the handle rotating around the housing. The tool is packaged in a tray for home workshop storage.

The system is available in three different sets.

%ff

Spray Can Storage

A cabinet designed specifically for the storage of aerosol spray dispensers has been introduced by the Durham Manufacturing Co. The unit accommodates 56 caris up to 10" high.

With welded construction, finished in rust and acid resistant enamel, the cabinet is 33%" wide, l0%" high and l1Yr" deep. There are seven compartments.

Pocket Saw

Raki International now offers a folding saw, Uniclap (Model 214), designed for cutting wood, metal or plastics. It can be hung on a belt hook or slipped into a pocket.

The saw has a wood blade for either wet or dry material and a metal blade for cutting metals or plastics. The teeth on both have been treated with an electroinduction hardening process.

Load Bearer

Trallfa U.S. Inc., has introduced a contractor model wheelbarrow that provides a 6 cu. ft. capacity with a l6-gauge, seamless deepdrawn tray 13" deep, baked enamel finish,thatlholds over 500 lbs. of cement.

Tray edges are rolled oyer a Vz" steel rod. A countersunk bolt design prevents shovels from hanging up while steel legs and braces maintain stability. The unit has a 16" x 4" 2-ply pneumatic tire with ball bearings and steel rims. Kempas wood handles are kiln dried, sanded and lacquered.

and a needle with a screwdriver type handle. The outside portion of the material winds into the puncture through the needle and road heat welds the repair.

Chisel & Gouge

A wood carving set from Millers Falls features five basic tools with maple palm-type handles for cutting control plus a sharpening stone and case.

The heat-treated forged steel tools include 3/8" bent chisel, 3/8" skew bevel, 5/16" gouge, l/4" U tool and 3/32" veining tool. A set with standard hardwood handles and a 3/8" straight chisel also is available.

Tire Patcher

Now nationally distributed, the Berkebile 2 + 2Tubeless Tire Repair Kit can be used to fix a tire puncture. The kit contains 50 repair strips

"LOOKING AROUND" says Paul Bunyan

Paul does not rest on his fame as the lumberman's symbol of accomplishment. New requircments and changing conditions keep him aleft to progress.

Half Round Windows

Webb Manufacturing has molded half round windows that feature a seamless urethane frame and wood interior which can be finished to match other wood trim. Available in two sizes, they are compatible with existing window and door units.

The windows, which are structured with ''/r" in-

sulating glass, come in traditional brick mold design and a slimline style to match clad windows. Extension jambs are available to fit various wall thicknesses.

Casting sets are available in colonial and modern styles. Antique and stained glass window inserts are available.

Ayailable

Can

ting hood to discourage water from leaking inside when it is used outdoors. It comes in four colors, measures l3Vz" by l7Vz" by 30V2" and is manufactured bv Rubbermaid Incorporated.

Performance Jig Saw

The Bosch jig saw line has added a 520 watt motor for more power.

Speeds can be pre-set with a detented dial to 3,100 strokes per minute. The l" blade stroke can be set for straight reciprocating or one of three orbital actions.

A three-position air deflector clears cutting lines and a foot plate locks at 45" right/left for bevel cutting.

Unusual Doors

Combination Door Co. has added new designs to their line of storm and screen doors. Circle,Gothic and other styles harmonizing with unique types of home architecture are now part of their selection.

The doors feature the natural insulating capacity of Woodlife treated Ponderosa pine.

Inside or Out

The Roughneck hooded wastebasket, with a 56-qt. capacity, is big enough to take tall kitchen wastebasket liners.

The new container has a snug-fit-

e Pressure Treated Forest Producte

o Custom Treating Service

o Fencing

Water-Borne Salt CCA Tvoe A GrapeBiakes

Posts & Poles

Solar Heated Water

The Sets, a new solar energy thermosyphon produced by Noranda Metal Industries, Inc., is designed for use in a residential solar energy system.

Mounted externally to an electric water heater or solar tank, the heat recovery device which features no

moving parts, uses natural convection action to form a closed-loop system using 50/50 glycol and water as the transfer medium.

It is constructed with all copper, double walled, positively vented tubing to meet state codes. The system carries a limited S-year warranty.

For more information on New Products write The Merchant Magaiine,4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Please mention issue date and page number so we can process your reouest faster! Manv thanks,

Mechanical Sweeper

A low-cost permanently installed chimney cleaner allowing wood and/ot coal stove users to remove flammable build-up is available from MTTL Manufacturing Co. Featuring a steel brush suspended from a steeple assembly, it is operated by hoisting the brush up and down from the clean-out door.

It fits any height and shape straight chimney with up to a 12" sq. flu liner. Eyebolted to the chimney base, the system includes pulleys, a 60' stainless steel cable and nylon lead rope.

Additional lengths are available. Brushes which range from 5" round to 12" square come in optional poly-pro for cleaning coal stone residue.

Westem Home Center Show

.F ENERALLY favorable reviews

\lgreeted the first annual Western Home Center and Building Materials Show held October 2l-23, at the Anaheim, Ca., convention complex. The industry concensus indicated that the event has potential to become one of the country's major regional shows.

Attendance figures totaled 10,129 for those preregistered, including exhibitors, according to show officials. Final attendance totals were not available at press time. Organizers were widely credited with staging a first class, professional show. More than 500 exhibitors showcased new products and services tailored to the Western market.

The show will be held next year in the same two halls at the Anaheim Convention Center, November 16-18, 1984. John F. Berry, director, trade show division, Vance Publishing Co., the show sponsor, said that "as a result of the tremendous response by both exhibitors and retailers to the first show, we want to be certain that we can accommodate next year's anticipated demand for exhibit space."

Home center retailers gave high scores to the nine business management seminars held during the show, according to William Fishman, seminar director and a columnist for this magazine.

He said 8390 of the attendees who filled out opinion cards rated the seminars as "excellent" or "very good;" l49o indicated "good;" and 390 scored them "fair." No one rated a seminar "poor."

Comments reflected a wide range of special concerns. "This was the first computer seminar I've attended given in plain English! I felt like a participant, not an uneducated observer," said one.

"It was worth tne trip from Alaska." said another.

Designed to be practical, educational workshops, the seminars were conducted by panelists who spend their work day engaged in the business activity under discussion.

Subjects ranged from using minicomputers for management information to strategic planning and merchandising in the western market. Two seminars were devoted specifically to DIY: capturing more DIY business; and teaching do-it-yourself skills to consumers which was chaired by The Merchant Magazine's editorpublisher David Cutler.

Company gambles on econoffiV, beats the odds

llOT ALL companies are born at Iltne "right" time. Martin Forest Industries, redwood wholesale brokers and distributors. was formed in 1979 at the end of the last big building boom. Economic conditions then were not favorable, due to dwindling housing starts, soaring interest rates and runaway inflation.

Gary Malfatti, half owner and working partner, puts it this way: "A lot of people didn't expect MFI to make it. But we've beaten the odds and come out on top. I've been in the industry for over 15 years and have seen a lot of people and companies come and go, but MFI took a gamble and survived."

Gordy Martin, president, and Malfatti, vice-president, have had a long association. They always dreamed of someday combining forces to form their own company.

Their dream became a reality in 1979. MFI was formed and began operating out of a one room office in St. Helena, Ca. It was a meager beginning, depending upon a shoestring budget and a small, but loyal following to get them through.

Four years later, MFI had expanded its customer base and outgrown its facilities. The company had a brand new facility constructed in Healdsburg, Ca., with over three acres of distribution yard, a beautiful 2,000 sq. ft. office, a three-car spur, and milling facilities. A grand opening of these facilities was held on October 7 of this year. Many of their customers and suppliers turned out to help in the celebration.

MFI handles 9090 redwood items including all unseasoned and kiln dried uppers as well as redwood timbers to 30 feet. The balance of their product mix is a select group of pine and cedar products. Because they handle redwood products almost ex-

(Please turn to page 72)

Story at a Glance

Despite 1979 start up condilions, wholesaler grows with sound business techniques, lots of hard work. expanding market area. .new head. quarters facility, larger staff.

ollicers: (1) Gordon King and Pete Niebling along with Bud Baker, Ed Fountain, Jr. (2) Tim Gaffney, Paul Haacke, Elaine Smith, Jack Price, Bill Jones, Bill Sullivan. (3) Arnold Nutter, Gene Burnett. (4) Ted Pollard, Daryl Bond, Kent Bond. (5) Jim Golding, Steve Baugh, Mark Herms, Bob McCuen.

(6) Jim Frodsham, Mike Nicholson, Ron Tipton, Ed Feduniw. (7) Doug Willis, Bob Bonniksen, Rich Bilby, Nelson Sembach. (8) Fred Kruse, Andy Ersek, Miles Butterfield, (9) Don Swartzendruber, Helen & Bob Wells. (10) Sterling Wolfe, Jr. (11) Bill Gunnell. (12) Doug Ketchum, Frank Stewart. (13) Len

Albrecht, Wayne Gardner, John Hodge. (14) Pete Speek, Ron Boag, Larry Crabtree. (15) Jon Wolfe, Bob Brown, John Newquist. (16) Pete Skibba, Jerry McGuire. (17) Bruce Burns, Ted Gilbert, Dale Bacon. (18) Art 0lsen, Mike Covey,

Wholesaler regionals

;HE regional meeting pictured I here, held in Los Angeles, Ca., by the North American Wholesale Lumber Association, was one of a series of more than 20 such gatherings held this fall at various locations around the country.

The controversial topic of federal timber purchases was addressd by

former Oregon Congressman Charles Porter, whose anti-industry views provoked the sharpest debate seen at a Southland regional in years. Porter's opinions were heatedly attacked by Gordon King, a NAWLA first v.p. and president of Hampton Lumber Sales, Portland, Or.

A report on the condition of NAWLA ("excellent") was given by association v.p. H.M. "Pete" Niebling, who attended this meeting as well as a number of others in the other parts of the country.

The gathering, held October 19, drew more than 80 people.

"National"

is upbeat

1;ORE positive attitudes regardlUIing business conditions in 1984 were expressed by the majority of dealers attending the annual meeting of the National Lumber and Building Material Dealers Association. Favorable financial conditions and a strengthened economy were cited as bolsters to improved industry business. Attendance was up slightly over last year.

William J. White, president of the Masonite Corp., told the dealers to look beyond their valued builder and contractor customers to the repair and remodeling markets which he forecast to be the real growth areas. He said that "no real growth has occurred in American new housing construction since 1946. " He noted that when business cycles are eliminated, statistics show that housing starts have averag-

PAST PRES. (1) Jay & Martha O'Malley, Nancy & Bob Ramsey. (2) Al Newkirk, Herb Winward. (3) Jeane & Les Ley. (4) Frank Davis, Fred Caruso. (5) Gene & Kaytee Lively. (6) Don & Doris Hossack. (7) David Rogoway, Steve & Peggy Snavely, Jim Stewart. (8) Bonnie Champion, Bernice Newquist. (9) Louise McKlvenn, Ansel & Frances Hyland. (10) Mike & Teri 0'Malley. (11) Gordon Seiler, Joan Winward. (12) Ray Wells, Jim Stewart, Don Hossack, E. J. Johnson. (13) Sherry Gaylor, Wally Lynch. (14) E. J. & Sharon Johnson, Ray Wells. (15) Dean & Gene Drake.

ed around the 1.5 million mark for the past 35 years. He envisions no expansion through the year 2000.

"Your opportunities depend on where you do business; on how your market and community is growing; and on local demographics. It also

depends on which customers you solicit and your specific mix of builders, remodelers, contractors and consumers. You must differentiate your operation from the competition to best serve your selected customer, " White counseled.

Congressman Robert Michel (R-Il.), minority leader of the U.S. House of Representatives, said gradual progress is being made in resolving the federal deficit, but that the real push bringing governmental expenses more in line with income will not take place until after next November's presidential election.

Special assistant to President Reagan, former California Congressman John Rousselot thanked the dealers for their support of the administration's efforts to reduce government involvement in business and personal matters. He stated that President Reagan "is steadfast in his determination to curtail the whirlwind growth of federal programs and expenses."

Nationally recognized transportation expert Wally Lynch, who has worked with NLBMDA in developing studies on delivery practices, was one of a number of authorities pre-

ROUGH GREEN CUTTINGS

Old Growth Douglas Fir: export clears, industrials, structural beams & timbers, rough green dimension and boards

JENSEN TUMBER COMPANY

P.O. Box 29, Hyampom, Ca. 96046 (916) 62&5265

Bob Jensen, general manager Rosemary Jensen, sales manager

senting seminars during the convention. Lynch also writes articles for this magazine on control of transportation costs. Other seminars and presentations included computer use, new product selection, advertising, passing on the family business, Washington legislative developments and the Mortgage Retirement Account.

Popular TV personality and author Art Linkletter was on hand to honor NLBMDA's Past Presidents with a well received talk. The

(Continued on next page)

gulnlWlalpaalaLurrrbpl,

Hem-Fir Hemlock

Douglas Fir

GREEN or DRY o DIRECT MILL SHIPMENTS LCL o CARGO o RAIL o TRUCK & TRAILER o PRESSURE TREATED LUMBER

Yard & Olllcer: End of Alrport Rd.

P.O. Box 723, Uklah, Ca. 95482 Phone CORDES LANGLEY.

ROGER HOWARD:

(Continued from previous page)

meetings were held at The Pointe Resort, Phoenix, Az., Oct. 8-12. Next year's meeting will be held in New Orleans, Oct. 3l-Nov. 4, concurrent with the 1984 World's Fair, at the Fairmont Hotel. In 1985, National will meet at the Westin Hotel, Seattle, Wa., November 17-21

William R. Morrow of Lawson, Mo., was elected president of the National at the 67th annual convention.

Owner of Morrow & Sons, he succeeds P.B. "Bud" Howe, Carver Lumber Co., Peoria, Il. Howe became chairman of the board of the association which represents some 10,000 lumber and building material retailers through 26 federated state and regional associations.

Others elected: first v.p., Patrick McCormick, McCormick Lumber and Fuel, Madison, Wi.; treasurer, Gerald A. Jewett, Jr., Jewett Lumber Co., Des Moines, Ia.; and secretary and executive v.p., John M. Martin, Washington, D.C. Regional vice presidents elected: Edgar Harman, William Morton, J. K. "Ken" Borders. and Merle Mensinger.

REDWOOD . CEDAR

DOUCLAS FIR . HEM-FIR

PINE COMMONS . PLYWOOD SIDINCS

CEDAR SHAKES & SHINCLES

TREATED STOCK

MASONITE BRAND

PLYWOOD SHEAT

HOME CENTER SHOW

(Continued from page 65)

Among the new d-i-y products at the show: Sentry Safe's "one hour fire-test model which can be bolted to the floor. A complete boxed and prehung security vault door specifically for remodeling and d-i-y applications was from General Products. Weiser Lock introduced its "Weiserbolt," a lockset plus deadbolt that allows the spring-latch to extend to a one-inch deadbolt. S & D Industries, Inc., introduced a sliding door lock with keytype single or double cylinder mounts, both featuring "loop action" to prevent lift-out of the patio door.

Guardian Home Products showed a steel security storm door. Indal Aluminum Products offered a security door for sliding glass doors that claims holding power of half a ton.

Drip-irrigation was introduced for the home by Raindrip, Inc., with a do-it-yourself drip irrigation, fertilizer and filtering kit. "Drip Thinker," from Galcon, Inc., was a battery-powered control for automated drip-irrigation. For lowvolume irrigation systems, Misti

Maid, Inc., introduced "Twist To Lock" reusable, easy to lock and unlock nylon connectors. Another water-control product for d-i-yers was Gardena, Inc.'s high tech watering system utilizing interchangeable, noncorrosive. shock-resistant "click" couplings.

For every d-i-yer came two new allpurpose items: Eclectic Products' "Household Goop," which is intended to "protect, prolong, repair or replace worn leather and rubber." Flexible and ultraviolet resistant, it squirts directly from a tube and hardens overnight.

From Mansion Industries: "Foldhorse," a folding 6-lb. sawhorse utilizing a cable suspension system and spread-eagle design. One pair is said to handle a maximum load of 2,000 pounds. Billed as the world's first adjustable-height kitchen faucet, the "Riser," from Stanadyne,/Moen, lifts to an extra 9" above a sink top for filling vases, washing large pots, watering plants or filling other tall containers.

Finally, two items for fireplace lovers: Described as a radical change from the conventional fireplace grate, "Firenest" combines flexible chains and angle iron to create a durable as

well as decorative unit. And for anyone with a chimney a do-ityourself chimney cover, from JoMoco Products, which offers the option of a built-on cover or a slip-in style which doesn't extend above the masonry.

Mortgage Money Plan

The National Association of Home Builders have joined with members of Congress to push for legislation that will encourage pension funds to invest in residential mortgages.

"Clearing away the regulatory underbrush surrounding the issue of pension fund investment in housing is not an easy task," said Harry Pryde, NAHB president. "But we are confident that the Residential Mortgage Investment Act of 1983 is a giant step in the right direction."

Garden Week Proposed

A congressional subcommittee has proposed the first week of June, 1984, as National Garden Week. It would honor gardening activities and the contributions made by the nation's gardeners.

SUCCESSFUL GAMBLE

(Continued from page 66)

clusively, Martin feels that MFI "can supply any redwood need much more efficiently than other suppliers and give that competitive edge which is so necessary in this current market."

MFI has expanded its market area from northern and central California to cover the continental United States. Their customer base is primarily retail lumber yards and other wholesale lumber brokers. They also supply Alaska and Hawaii through container service. Some of their other services include piggyback and railcar loading for out of state shipments and on site

milling facilities to expedite hard to get pattern items as well as resawing and resurfacing. They specialize in less-than-truckload deliveries for the central and northern California market. MFI stays abreast of all market conditions to ensure that no favorable mill offerings are passed by or overlooked.

MFI has a talented sales staff to perform these services. Robert "Bob" Haas has been with MFI since 1980 and is a great asset to the firm. He is involved with all of the major buying for inventory as well as dispatching and covering a sales territory of central and northern California. Bob has been in a position to note the growth of the firm. "In the beginning, I was dispatching l-3 trucks per day in

California; now I am dispatching almost full-time, anywhere from 10-18 trucks per day, many of them for out of state shipment."

Newly acquired John Blatchford rounds out the team. Formerly with Timber Realization Company in Calpella, Ca. John brings extensive mill experience with him. He handles all of the national accounts outside California and has an excellent rapport with accounts. He has been servicing many of them for years.

Martin and Malfatti compose the rest of the sales team. Managing the day to day operations for MFI, while an important function, is merely a part of their duties. They believe in taking an active part in all aspects of the business. They begin their day on the sales floor along with their sales staff and finish their day long after everyone has gone home. Sharing the same work philosophy as well as a strong, mutual friendship makes their working partnership stable and satisfying to both of them.

Both Gordy and Gary feel that controlled growth of the firm will allow MFI to expand its services and customer base without compromising their reputation for honesty and integrity. Customer satisfaction is their main goal and, large or small, all customers receive the same excellent service and attention, they say.

MFI plans to continue to be a major factor in the market place. Martin and Malfatti took a gamble and turned it into a sure bet. Even though they have made great strides they are not easing up. They are still beating the bushes making cold calls, tracking down leads, keeping their nose to the grindstone and not letting their past success eo to their heads.

"Of cource, if you really wont to save gqs, those snow removers don't use any at all."

SHIPB0ARD restaurant in Los Anoeles. Ca. harbor was the site o{ the Los Anqeles Hardwood Lumberman s Club s latesioatherino. It was strictly social, with no cludbusineis transacted. Club president (1) Clint Bower, Peggy & Rob Kincaid. (2) Gage McKinney,

Cutler,

:

GIASSIFIED AEUERTISEIMENTS

We are a new sales company that offers you the tools to be a success. We have mill production, remanufacturing, on-hand inventory and good financing. Commission with draw plus insurance. Send resume to Croman Forest Products, 146 Mistletoe Rd., Ashland, Or.9'752O.

WHOLESALE lutb., ai,triUutot *.a**perienced salesperson in softwood & hardwood lumber & plywood. Los Angeles area expertise helpful. Excellent compensation. Contact Jim at (714) 997-1715.

WANTED: experienced outside salesman for commercial and industrial accounts. Must have customer following. Excellent compensation and benefits for the right person. Contact Robert Schneider, McClellan-Schneider Mill & Lumber, Wilmington, Ca., (213) 549-7361.

Wholesale, industrial lumber salesman. Five years or more experience in wholesale lumber. Draw and liberal commission. Orange County and southern L.A. County, Ca, now open. Take over existing accounts. Replies confidential. Whisler Hardwood, Inc., P.O. Box 43678, Los Angeles, Ca. 90043, (213) 7s3-4s2t.

WANTED: Oulside contractor salesman. We're willing to train ambitious person w/some experience. WANTED: potential truss manufacturing manager. Construction experience requested. Prefer young person for both jobs. Out of stale applicants welcome. Compensation in both positions excellent. Boyd Lumber Co., 1400 E. Arrow Highway, Upland, Ca.,91786. (714) 982-1577.

NEEDED: outsrde salesman for commercial and industrial accounts. Experienced and aggressive. Salary commensurate. Health plan. Send resume to: Ricci & Kruse Lumber Co., Hawes & Armstrong Sts., San Francisco, Ca. 94124.

Twenty-five (25) words for $19. Each additional word 650. Phone number counts as one word. Address counts as six words. Headlines and centered copy ea. line: $5. Box numbers and special borders: $5 ea. Col. inch rate: $30. Names of advertisers using a box number cannot be released. Address replies to box number shown in ad in care of The Merchant Magazine, 45lD Campus Dr., Suite 4E0, Newport Beach, Ca. 92.660. Make checks payable to The Merchent Magazine. Mail copy to above address or call (714) 549-8393. Deadline for copy is the 22nd of the month. PAYMENT MUST AC' COMPANY COPY unless you have established credit with us.

EXCELLENT opportunity: large wood treating operation needs aggressive on-theroad salesman to call on yards and home centers in the Southern part of the West Coast. Requires travel. Knowledge of retail yards a must. Some knowledge of pressure treated products required. Salary and bonus commensurate with ability. All resumes kept in strictest confidence. Write Box 492 c/o The Merchant Magazine.

EXPERIENCED LUMBERMAN

Full time or part time office and warehouse. Call Colonial Lumber Co., (415) 345-8508, Jim Baly.

LUMBER salesman for contractor sales with following in Los Angeles, Ca., and North territory needed for company with 35 years in business. Salary commensurate with experience. Send resume. All replies strictly confidential. Write Box 496 c/o The Merchant Magazine.

FOR SALE: 4t' Stenner resaw by Crestwood Lumber. 40 hp. motor, blower, sawdust tower. Max. length of saw = 24' 8". Max. width of saw = 5V2". $30,m0. Gary Collins (415) 593-1794. 625 Old County Rd. #4, Belmont, Ca.94M2.

DECORATIVE BARK for sale.

Manufacturer of bark products has product available for prompt shipment. Contact Croman Corp., P.O. Box 610, Ashland, Or. 97 520. (503) 482-1221.

FOR SALE

Spanish roof tile, also Provincial green glazed. Contact Roy Allison, 221 E. 4th, Cherryvale, Ks. 67335 or 316/336-3593 after 6:30.

California Lumber Inspection Servic-e

Certified Agency

L.A. (7r4) 546-55r2

s.J. (408) 297-807r

Portland (5O)) 659-4812

I190 Lincoln Ave., San Jose, Calif.

Classified Rates .65C per word

***REAL ESTATE SERVICES*** Corporat ions/Companies

Advisory Services

Available Sales o Leasing

Richard M. Phelps, R.E.C.l 6400 Canoga Avenue, Suile 210 Woodland Hills, Ca. 91367 (213 888-2852

LOCAL LUMBER hauling Southern California roller bed truck and trailers and bobtails radio dispatched. Rail car unloading at our spur in LongBeach. 3C Trucking (213) 422426.

RENIANU} ACTURING I.'ACILITIES FOR SALE

Located in heart of cedar and pine country, Coeur D'Alene, ldaho. Producing interior paneling, exterior siding and fence board. Well established with excellent clientele. Can be a real money maker with sufficient working capital. Financing available to right type of person, please direct inquiries to: Lumber Yard for Sale, l33l E. Wilbur Ave., Coeur D'Alene, ld. 83314.

INVENTIONS

lnventions, ideas, new products wanted for presentation to industry and exhibitions at national technology exposition. Call toll free l-(800) 528-6050. In Arizona, call l-(800) 352-0458, extension 831.

TWISTED AND WEATHERED

Douglas Fir S4S and rough, 3x4 and wider and 4x4 and wider. Call Bill Hunter, Hunter Woodworks. (213) 77 5-2544\ (2 I 3 ) 83 5-5671.

When sending in a chonge o/ address please include zip code on both oltl and neu, addrisses and either the old label or the inlbrmation .from it. Thonks!

Lumber Yards & Home Centers (etc.)

Carlson and Associates is in business to serve as a Broker specializing in the sale of Lumber Yards and Home Centers furnishing a unique "single dource res=ponsibility" to the industry.

Services offered can include financial counsel, legal and accounting recommendations, certified inventorv count and other valuable and imfrrtant assistanceThat only experience can bring to a sorietimes "once in a liletime" transiction. Ordinary "redidential" "brokers are not able to orovide such services.

Al Carlson has over 30 years in the lumber business and 15 years as a developer of real estate.

In dealing solely with the lumber industry he is able to provide experience, discretion and confiden"tiality' in all transactions.

iiilll,:ti:i:lil LOS AI1OELES AREA

TUMBER AND PLYWOOO

American Hardwood Co. (213\ 749-4235

BAY AREA E]UYE RS'

OREATER BAY AREA

Bonninolon Lumber Co

Beaverlumber Co

Cahlornra Forest ftoducls.

Flmr Servrce Suoolv {San Jose)

GERLumberCo.

Georora-Pacilic Coro

Georoia-Paciftc Corb. {San Joset

Ha'ness Timber Prdducts

Hioorns Lumber Co. (l\4onlerevt

sAN FRAI{CtsCO

LamonLumberoo.

l\4acBeathHardwood ..

Pacific Lumber Co.

Weslern American Foresi Producls Weyerhaueser Co.

Ed

Fremonl Foresl Producls

Galleher Hardwmd Co

Gemrni Forest ftoducls

Georgia-Pacific Corp. (21 3) 968'5551

Heppner Hardwoods.

Hill Lumber Co , lvax

Hult Lumber Co.

Hunler Woodworks. (213) 835-5671

Inland Trmber Co

Lane Stanlon Vance Lumber Co.

Louisiana-Pacilc Corp..

L-P Dislribution C€nler

Mac&ath Hardwood

l\raole Eros . Inc lvouldings

lllarquarl-Wolle Lumber Co.

Hidqrns Lumber Co. asan Josdl

Hroorns Lumber Co. lUnron Crtv)

Hidqins Lumber Co. awa,nut Cieekl

Holbs Wall Lumber Co., Inc.

lllacBeath Hardwood

NovoTimber Producls. Inc.

P.R.0.0. Wholesale 0istributors

Bedwood Empire, Inc.

RoandoLumber Co., Inc.

Srmoson Burldrno Suoolv Co.

brmDson I rmoer u0.

Tflangle Lumber Co

Ward Forest Prod. ... .140$ 779-2147

Wendlino-Nathan

Weyerha-euser Co {408} 297-9451

Whlte Brothers

Woodlaqd Producls Co.

ARCAIA/EUREKA/FOsTUI{A

Eracul lnternalronal

Britl Lumber Co.

Crown Redwood Co.

Humboll Redwood C0.

Loursiana-Pacilic Corp.

Paci{rcClears......

PVL'l Redwood Co.

Berd&Wnoht ..

Schmrdbauer Lumber, Inc

Srmoson Burldino Suoolv Co.

AUBURT{/GRASS VATLEY

All-Coasl Forest Producls, Inc

R&lWoodProducts

EAXERSFIELO

Hiooins Lumber Co.

Paiilic Wood Preservino oJ

Bakerslield, Coro. .l.... {8051 582-3950

cHtc0

NorlieldManulacturina

CT(lVERDATE

Bowman Lumb€r Sales.

G&R Lumber Co.

Bolando Lumber (Kinton 0v.l

c0RilrilG

Crane Mills.

F(,RT BRAGG

Georaia-Pacilic Coro. ( Redwood)

Holmes Lumber Cr:, Fred C.

Nresen Forest Producls.

FREiI(lI{T

DMK Pacilic Corp.

Louisiana-Pacitic Corp

mEsit0

(800) 742-1939 (209) 486-6221 Wmdwtrk Instituteol Calilornia (209) 233.9035

SOUTHER]I CATIFOR]IIA

California Redwood Associalion Casella Trans0ortatron Dalaline Corp

HllSSystemsCorp...... toaco.....

Redwmd lnspection Service.

SouthernPacilic...

Triad Syslems Coro. Union Pacilic Railrbad

P& M Cedar P0ducls

Redding L umber Transport

Trinity River Lumber Co.

Web Lumber Co.

sAcEAilEltr0/sT0cxT0lt AREA

Calfornra Eurldgs SUDDIv

ChaMler Coro.

Ensworlh Forest Prcducls (800) 525-5015

Flmr Serurce SuDplv.

Georaa.PacifrcWarehous

Hrooins Lumber Co

Ko-p-pgs Co.

Lilrs Co., Inc.. PalmerG

Louisiila-Pacific Corp

Mello lnc.

Nrkkel Coro.. The

0slermann & Scherwe USA

P& M Cedar Producls

Rmklin Forest Producls

Siski\ou Foresl Produds

Slakton Wholesale

Un0n Foresl Produds

Uni0n Pacilic Railrmd

Un n n Han no Mrll

Waldron Foreil Producls

Wesltrn Amercan Foresl Prcducls

Western Wod Treatho Co.

WeyerhaeusrC0. ... (800) 952-5616

SAIITA BOSA AREA

JH Blevinsco,lnc.

Hroons Lumber Co.

[4;iinForesllnduslnes

Noyo Timber Prcduds. Inc.

Nu:Forest Products

Rich Doss, Inc.

Standardstructures

Windsr Mrll. Inc..

Wmdland ProduclsCo Inc.

u t0Alt/cAtPEttA,/wtLtlls

All Hart LumberCo., Inc.

Carter Foresl Prcduds

1707) 544-2982

CoaslWoodPreseryrnq,lnc. .... ...

Little Lrke Induslries -

Penolrn Markettno

Pfrlormance Coalnos. Inc. lCa.) (800) 468'8817

Redwod Cnast Lumber Co

Trmber ReaIzalron Co

WEE|l

Srskiyou Foresl Producls

tvtLLtAils

San Anlonro PoleConsl Co.

Tw€ody Lumber Co.

Wolle Lumberoo.. Wmdad Produds Co.. Inc

American Mill & Manufacturin9 .

Eaker Hardwood. BumsLumberCo...

Fishman & Alfiliales Fountain LumberCo.. Ed FremontForestProducts FrostHardwmd

iiiirilliiilllll::i'r,i:ir,l,i PAG|F|C I{ORTHWEST STATES

LAKEVI€IY Precrsrcn Ptne Co

MEOfl'RD

Cornetl Lumber Co.

Custom Panels. Inc

Founlarn Lumber Co Ed

Lumber Prcducls

Miller Redwood Co.

Snavdy Foresl Products (800) 547'303S

unron Pacilrc Rarlr@d

Wmdlrng.Nalhan Co Inc.

CEEATER PORTTAI{D ASEA

J.H Baxts & Co.

Bel Air 0oor/Alpine

veneers, lnc. . (800) 547-6755

Boise Cascade (800) 547'8016

CascadeEmpireCorp. (800) 547-8371

Cole & Associates, John T. .

DalaIne Corp

Friesen Lumber Co. {503) 397-1 7m

Fullmer Lumber Co

Furman Lumber, lqc.

Georgra-Pacrlic Corp.

Hmplon Lumber Sales Co.

LewisCo., Inc.. PalmerG.

Loui$ila-Pacilic Corp.

LouisBm.Pacic Corp {Beave40n)

Lumoer Products

Penbenhy Lumber Co.

Publishtrs Forest Products (800) 547-6633

Simon. Crablree & Ryan

Southern Pacrfic

Siskiyou Forest Producls

TreeSource, lnc. {0ulside 0r.) (800) 833'TREE

Un0n Pacilic Baii.oad

Western International Foresl Products .. (800)547-5500

Weyerhaeuser Co

RIt)()LE

C&0 Lumber Co

WAI-tA WALLA

lJnion Pacilic Railrmd.

WEIIATCHEE

LewsCo.,Inc., klmerG

YAt0ltlA

Lewrs Co.. Inc Palmer G

ALEAiIY

Willametle Industries, Inc.

8EI{D Cuslom Panels, Inc Union Pacrlic Rarlroad

c008 8AY Coos

Inc.

OREGO}I

& Plywood c0RvALus

Herberl Lumber Co.

R()SEEURG

Hmver Universal (800) 848-0800

Keller Lumber Co.

sAtEil Lumber Products

qlrsE

ChandlerCorp.

G@rg6-Pacrtc corp.

LflrsCo,Inc., PalmerG

LEWtST0t{

lFrffi:si ROCKY MOUl{TAltS Hsffi COLORADO

IDAHO

ALASKA

Gerald F. Bonnington, retired founder of Bonnington Lumber Co., Oakland, Ca., died on Nov. 21,1983, in Walnut Creek, Ca. He was 90.

Mr. Bonnington started in the lumber business in 1909 and founded his own company in 1934. He was active in its management until his retirement at 88. He was a past president of the Oakland Hoo-Hoo Club, the lumberman's fraternity.

Mr. Bonnington is survived by two sons, a daughter, l6 grandchildren, l9 great grandchildren and a brother.

William Wesley Anderson, chairman of the board of Anderson Lumber Co., Ogden, Ut., died in that city on Sept. 29. He was 93.

A native of Logan, Ut., he had been president and general manager as well as chief operating officer of Anderson Lumber Co. for 30 years before his retirement in 1969. He

was a president of the National Retail Lumber Dealers Association in 1943.

He is survived by one son, two daughters, l0 grandchildren and l0 great grandchildren.

AD] NNDEX

MNRY RI MA U

At this happiest time of the year, we wish you all the very best forthe holiday season and for 1984. Weplan to continue to work with our friends erecting the quality buildings they need and want for the improved operation of their companies in 1984.

Mike Esposito, mgr. I lcacl(luarlcrs: 1280 unil t;-l \\'est l-ambcrt Rd. Flrea. Ca. 92621 (213) 694-8361 (714)'r29-779O

Flrarnch: l'.(). Flox 837 Williarrrs, Ca. 95)987 (916) 473-s3al

. Dearer direct

consumer referrals from our National advertising. Inquiry Serrrice. . Sales support and training

. Toll free L-BOO-522-WOOD seminars. for quick technical answers . Warranted Osmose brand to consumer and contractors pressure treated lumber. questions.

. Dealer coop advertising

. Effective Osmose merchan- support. dising aids.

call our toll free number or complete the coupon and mail today for details about the Osrnose Preferred Dealer prog|.rarrl.

Please send me the complete detalls aborrt the Osmose Preferred Ilealer Prngtaml