Introduction

1. Introduction Introduce the Los Angeles Hardwood Lumberman’s Club. Break down some of the various Southern California Markets. Share the results of a survey taken by members of the L.A.H.L.C.

2. Los Angeles Hardwood Lumberman’s Club • Started- • Members • Objective

3. Present • Total Number of Members over the years • Current Regular members • Women Members • Represent # of Companies • Six Southern California Counties CountyPopulation (2002 est.) Los Angeles 9,806,577 Orange 2,938,507 Riverside 1,699,112 San Bernardino 1,816,072 San Diego 2,906,660 Ventura 783,920 Total 19,950,848 • Nevada, Arizona and Mexico

4. Organizational Objectives • Social • Meetings, Spouses Night, Xmas Party • Educational • Guest Speakers • Fund Raising • Yearly Golf Tournament • Participants= • $10,000 + to the Hardwood Forest Foundation • Any one wishing to participate as a sponsor can contact me later.

5. Markets • Furniture • Home Furnishings : Are being beaten up by the Imports in the mid level and lower priced furniture especially. Upholstered furniture seems to be weathering the import barrage, for now. • Hospitality Furniture: Making improvements since 9/11 put a damper on the travel industry. Showing good signs. • Office Furniture: Have faced a few bad years but are showing signs of doing better. • Kitchen Cabinets • Very Good! Where are all these people supposed to live. • Architectural Millwork • Follows construction Trends • Doors and Shutters • Doing well • Wood Flooring • Hot !!!

6. Survey Results • Sales of West Coast species average approximately 20% of the total sales volume to the individual companies. • A trend shows increases in these sales over the last 3 years. • Demand has been extremely strong for Alder, P.C. Maple and P.C. Birch. • But 80% report that they and the end users were unable to secure the lumber needed to satisfy demand. • They are either substituting species or grades to try and satisfy this void. • There is a growing frustration at both the Distribution and End User levels due to : • Inconsistencies in supply • Inconsistencies in grading from one mill to the next • Rapidly rising prices • * Not knowing what to expect in the future puts doubts into committing to these species in the future. • 90% of the responding members feel this is going to have long term ramifications • 100% of those responding would welcome a speaker from the WHA or individual companies to attend one of our educational meetings and discuss other West Coast species or discuss the problems we are currently facing. • Outlook to the future amongst the majority is positive. • Questions