3 minute read
Growing Sunbelt area is a challenging market situation
CHALLENGING market faces the new Louisiana-Pacific dis- tribution center in Albuquerque, N.M., the third built in their program of adding distribution capabilities at the wholesale level to their manufacturing muscle.
Lack of widespread rail transportation, unusual weather conditions, high altitude adjustments, and a burgeoning Sun Belt population all add up to an interestins marketine situation for Mike Sampslon, managEr, and his staff of 12 people. A 300 mile circle desisnates the marketine area which rJaches out to West Texas,
South Colorado, New Mexico, and eastern Arizona. Despite the distances covered, Albuquerque is half of the market area in terms of dollars.
Since there is no rail service north of the city, there is lots of long distance truck hauling to serve the widely spreadout market. According to Sampson, the fleet of truck used is leased so that they can readily add more as they are needed. Adjusting to demand requires a flexible arrangement.
Altitude as well as transportation is a variable. Santa Fe, for example, is less than an hour away by truck, but is 7,000 feet above sea level.
PREiIIER EUEIII of the annual world hot air balloon festival was incorooraled with the opening of the Louisiana-Pacific distribution cenler in Albuquerque, N.M. Balloon, hovering near trucks in background, provided rides as well as theme for name taos and buflet decorations.
Albuquerque is higher than Denver by about 200 ft. with a 10,600 foot mountain, only 30 minutes from town.
All wood fencing sold requires standard or better cedar, Sampson explains, because of the heavy winds. Weather factors also create a changing market with seasonal demands for different species.
Redex, an L-P product, is big in the market, Sampson says. Other products sold include hem-fir, white woods and dimension, redwood and cedar, especially fencing, plywood, and particleboard. Some steel products such as wire mesh, re-bar, and Tposts for fencing are carried to meet the needs of rural dealers. The area has a wide species mix including yellow pine from the South, intermountain species, and West Coast wood.
Albuquerque's metro area population is 400,000 at present, with optimists expecting the Sun Belt to continue to srow. The tremendous srowth was sloied a little by the '7+-'lS recession, according to those in the know, but not as much as the pinch of the present cutback. Yet as of April there were reports of strong light commercial construction still underway in the vicinity. The weather, not as hot as Phoenix because of the hish altitude, increasingly attracts Eaitern companies to the area. As word of the pleasant living conditions filters back. more East Coast residents head West.
Confidence in the continued growth is bolstered by the news that nine carriers are bidding for the rights to fly into Albuquerque.
While this id a new market for L-P.
Sfory at a Glance
L-P's new distribution center in Albuquerque, N.M. .. unusual conditions in transportation, weather, altitude, growth create interesting market.. . continued expansaon seen.
it is not without competition. Georgia-Pacific, Sagebrush Sales, Bendix Forest Products, Capital Lumber (especially in cedar and redwood) and many small independents are alreadv established.
Sampson and his staff are operating a facility located on a site of just under I I acres. The yard, supervised by Leonard King, a 19 year old with a background of experience with Furrow, a Payless Cashways, Inc., division, is all blacktopped. There are 45,000 sq. ft. of covered outside storage.
The office, already on the property when it was acquired, is a metal building painted in L-P colors. The interior, however, is decorated with a variety of redwood products from L-P's Samoa Division.
Employees include an office manager, an inventory control person, and three salesmen.
Each salesman covers both dealer and industrial markets. They are LeeRoy Montoya, who came from Georgia-Pacific; Doug McGuire, a former Champion Building Products employee, and Russ Whalen, whose past experience includes Allied Forest Products.
Feeling the need for additional sales help, Sampson is seeking a fourth person at this time.
A one-year veteran with L-P, he had worked with Champion Building Products for 14 years with a variety of executive positions in Eugene and Portland. Or.. San Francisco and Southern California. At the moment he is full of enthusiasm for what he terms "L-P's newest and most exciting new Distribution Center. "
Hyampom Tumber Company
Dry Kiln & Milling Division 23fi) Moore Rd.
(P.O. Box 4754) Redding, Ca. 96001 (916) 243-2814
