Tmfil I IIil3 I a r)i iit: T I

Enelgy-efficient arr conditioners are f, good fol the envrronment, and even ^ll*.7 better for your balance sheet. That's because they cost less to operate-savtngs that you'il see reflected rn your utility bill.

The math rs simple: at a net 10% profit margn, it takes $10,000 in gross sales to pay $1,000 in enelgy costs. For the fust few years after purchasing energy-efficient equipment, your energy savings will go toward payrng for the cost of the retrofit. For the rest of the equrpment's lifg those additional a sales add straight to your bottom line. \ I

And consider this, a ploperly sized, ! energy-efficient at conditioner lasts longer and may help increase comfort and reliability. Boost your bottom line without increasing sales by installing an energy-efficient air conditioner! The environment will thank you, and so will your accountant.

For more information contact your vendor or vrsit www.pge.com/smarterenergy for a list of vendors ln vour area.

Tim Lewis has been named plywood sales mgr. for Roseburg Forest Products, Roseburg, Or., succeeding Dave Adams who is now regional sales mgr.

Otis Foglesong is credit mgr.; Raegan Stratton, sales assistant-national accounts; Candy Boerste, sales assistant-plywood, and Bernadette Mendenhall, sales system analyst.

Ed Boyle has been appointed mgr. of Square Deal Lumber Co., Silverton, Or., succeeding Matthew Miles, 31, who was shot to death, reportedly by his wife, Feb. 29 in his office at the business.

Rick Richardson, western regional sales mgr., has been promoted to national accounts business mgr. for Therma-Tru Doors. Jerry Oleshansky, ex-Owens Corning, is v.p. of sales and marketing.

Paul Cochran, ex-Hampton Lumber, is new to sales at Van Loo Lumber, Gales Creek, Or.

David Brunz, ex-Furman Lumber, is now with Talpx, Inc. as western regional mgr.

Treavor Calhoun is retiring from Harwood Products, Branscomb, Ca., after 40 years. He plans to return home to Warren, Ar.

Dick Bullard, ex-Potlatch, has been named general mgr. of Welco Lumber, Marysville, Wa.

Ron Breedlove has resigned as sales mgr. of Redwood Empire, Cloverdale, Ca.

Lynne Sudarich was named Melamine sales mgr. for Stel Industries, Inc., Algona, Wa.

Jenna Morgan has been named v.p. of government affairs for the National Lumber & Building Material Dealers Association, succeeding Allynn Howe, who has started a consulting business after eight years with NLBMDA. Linda Hertzog is now director of member services, succeeding Candace Kane, who left in August.

Mike Jensen has been named chairman and ceo of Jensen Distribution Services, Spokane, Wa. Doug Miller has succeeded him as president and chief operating officer.

Sam Sanregret has been promoted to v.p. of Capital Lumber Co., Phoenix, Az.

John Herbert has joined Home Depot as president of Expo Design Center's Orange, Ca.-based western division.

Dave Fackrell is new to sales at TJ Sales Inc.. Denver. Co.

John S. "Scott" Feller has been appointed mgr. of the Denver, Co.-based DC for The Astrup Co. John J. Konopka is assistant mgr.

Mark Starnes has been named v.p., recycling business of Weyerhaeuser Co., Federal Way, Wa.

Christopher T. Metz, president, Kwikset Corp., Irvine, Ca., has been named president, North American hardware and home improvement for Black & Decker Corp., Irvine. He will remain president of Kwikset.

Dennis Burt, Grants Pass, Or., is now an auditor for APA-The Engineered Wood Association, Tacoma, Wa., succeeding Henry "Hank" Botkin, who retired in May.

Murray Armstrong has been promoted to managing director of Ace Hardware Corp.'s international department.

Edward Graaf has been named Northwest regional sales mgr. for Delta Faucet Co., overseeing Wa., Or., Id., Co., Mt., Wy. and Ut.

Dean Fox, retired from Rough & Ready Lumber Co.. Cave Junction, Or., is now residing in Medford, Or.

Bill Sullivan, Golding-Sullivan Lumber Sales, Sequim, Wa., won the company's top sales award and took his wife, Nancy, to Hawaii.

Rob Morck, All American Home Center, Downey, Ca.; Eric Cooper, Cooper's True Value, Taft, Ca., and Buck Vernon, Budget Home Center, Longsmont, Co., received Young Retailer of the Year Awards from the American Hardware Manufacturers Association.

Randy Smith, Home Lumber Co., Bishop, Ca., and Ken Coverstone, Home Lumber Co., Yerington, Nv., joined the Lumber Association of California & Nevada, Sacramento, Ca.

Scott Dahl, Sierra Point Lumber Co., Brisbane. Ca., shot a hole-in-one during the South Bay Golf Tournament.

Robert Casale, Sierra Point, and Don Dutcher, Economy Lumber Co., Oakland, Ca., made up his threesome.

Craig Larson, Fontana Wholesale Lumber, Fontana, Ca., vacationed for two weeks in Hawaii.

Danny Martinez, Ganahal Lumber, Anaheim, Ca., and his wife, Annette, are the proud parents of 8 lb., 14 oz. Nicholas Martinez born Sept. 28. Judy Taggart and her husband, Walter, are celebrating the Oct. 4 birth of l0 lb., 4 oz. Walt Eric Wheeler. Lori Kerr, Corona, gave birth to 7 lb., 5 oz. Devin Andres Williams Oct. I l.

Ted Gilbert, Product Sales Co., Orange, Ca., and his wife, Rosie, vacationed recently in Puerto Vallarta, Mexico.

Warren Murray, Redhill Forest Products, Hayden Lake, Id., and his wife, Asa, are the proud parents of 7 lb., 8 oz. Mitchell Edward, born Oct. 14,2000.

Praudlltr grown and manufactured by the eolville lndian Tribe

Jerry Pugmire and Bob Baxter, Anfinson Lumber Sales, Fontana and San Diego, Ca., are back after sales trips to Arizona and Nevada.

Hugh Mungus and Freddy Fungus, Mungus-Fungus Forest Products, Climax. Nv.. named Will Addison to their succession manasement team.

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OSB Capacity Glut May Loom

The next three years could become quite bleak for OSB prices if producers continue with proposed expansion plans, resultipg in too much capacity chasing stagnant demand, according to a forecast by Wood Markets.

"If hll the proposed OSB capacity is built as planned, operatiig rates would plummet from the 1007o achieved in 1999 ta as low as 707o in 2003," says Russell Taylor, publisher of the newsletter. "This would be even lower than the dismal operating scenario that occurred during the 1990-91 recession!"

This is in stark contrast to OSB's stellar financial performance over the last five years, as OSB has been the only solid wood product that has offered exceptional returns in North America. With prices soaring to two to two-and-ahalf times cash costs during 1995 to 1996 and again between early 1998 and mid-2000, the potential payback on an OSB mill has been as little as two to three years. Consequently, most existing players want to add plants.

However, the strong returns came over a six-year period of unprecedented wood products demand in the U.S. when structural demand soared by 9 billion sq. ft. (227o) and OSB production alone leaped by 9.3 billion sq. tt. (85Eo). From 1994 to 1999, 12.5 billion sq. ft. of new OSB capacity (including "incremental capacity creep" at existing mills) was offset by 6.5 billion sq. ft. in OSB and plywood closures to evenly match the 7 billion sq. ft. in increased OSB demand.

Over the next three years, Taylor expects "challenging times for OSB producers and prices," because at least 7.5 billion sq. ft. of new capacity is under consideration at 16 sites-not counting the 500 million sq. ft. per year of capacity creep at existing plants. Of the total,2.5 billion sq. ft. of capacity at six locations is already committed for construction for this year. Of the additional l0 plants proposed, half of them are in formal stages of planning, indicating that at least l1 plants will likely be built over the period 2000 to 2003.

"This rate of new capacity is being proposed even though the projected demand is expected to remain flat over the next two to three years," adds Taylor. Demand for OSB is heavily tied to U.S. housing starts, which are not expected to reach the levels of 1999 or 2000 (over 1.6 million starts) until at least 2003. As a result, structural panel demand won't rebound from its 38.9 billion sq. ft. level of 1999 and 2000 until 2003.

"If OSB does not achieve significant market share gains in some end use segments over the next four to five years, then this means that all of the planned OSB would not be required to meet anticipated demand over the period 2001 to 2005," he says. "In other words, any new OSB capacity will simply reduce industry operating rates and prices."

A variety of technology issues also pose concerns for OSB. New technology in equipment and advances in resins have doubled new OSB plant capacities over the last five years from about 450 million sq. ft. to 900 million sq. ft. At the same time, the improvements have significantly lowered unit costs to furtherjustify new mills or expansions.

Other emerging technologies will improve process control options by real time measuring of strand orientation, panel density, glue distribution and other aspects ofproduct quality and consistency. This could eventually lead to potential growth in oriented strand lumber, where thick

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HLPC