Document 1V86G5KMGyo1BwmpJzYnZEVZ

CENTRAL DISTRICT(SOUTHERN POKTION)/J~H hamufactorhw CO., ISC.* MONTH OF OCTOBER SUBMITTED NOVEMBER 18, 1983 - PREVIOUS MONTH CURRENT MONTH BILLINGS (000) . MONTHLY EXPECTANCY (000)' % OF EXPECTANCY Y-T-D BILLINGS (000) Y-T-D EXPECTANCY (000) Y-T-D X OF . EXPECTANCY 3,132 3,132 100% 27,956 28,188 99% 3,741 3,132 119% 31,697 '31,320 101% ^BILLING INFORMATION IS FDR THE ENTIRE CENTRAL DISTRICT, BUSINESS ACTIVITY IS FOR THE SOOTHERS PORTION OF THE DISTRICT. EFFECTIVE JANUARY I, 1?8A, THE CENTRAL DISTRICT WILL BE DIVIDED INTO TWO DISTRICTS - THE NORTH CENTRAL AND THE SOUTH CENTRAL DISTRICT.(TEXAS, OKLAHOMA, ARKANSAS, LOUISIANA AND MISSISSIPPI). I. BUSINESS ACTIVITY OCTOBER WAS An EKCEPTIONAILT STRONG STOPPING MONTH, REFLECTING A. CONSTRUCTION BOOM WHICH BEGAN EARLY IN THE YEAR AND HAS NEVER LET UP. AT THIS JUNCTURE, IT APPKEARS THAT CONSTRUCTION WILL CONTINUE AT A RECORD PACE- THROUGH THE WINTER MOUTHS, ONLY INCLEMENT WEATHER WILL NEGATIVELY EFFECT SHIPMENTS. SHIPMENTS OF ASBESTOS/CEMENT PRESSURE PIPE -OUT OF DENISON SHOULD EXCEED 7,000 TONS IN NOVEMBER WITH AN ESTIMATED 4,000 TONS SHIPPING INTO SOUTH TEXAS AND SOUTHERN LOUISIANA. THE LAST 7,000 TON MONTH OUT OF DENISON WAS IN SEPTEMBER OF 19B1, THE CURRENT INVENTOR? TO BACKLOG RATIO OF LBS OF PTC AT DENISON IS 2,292,000 TO 2,229,000. FUTURE IMPLICATIONS OF THIS SHIPPING ACTIVITY AXE OBVIOUS, OVERALL price DETERIORATION, IN MY OPINION, IS THE MAIN PROBLEM OF THE DISTRICT AT THIS TIME. YEAR IN AND YEAR ODT, P.VC MANUFACTURERS CUT FRIGES AT THIS TIME OF THE YEAS IN ANTICIPATION 0E THE PREDICTABLE DECLINE IN CONSTRUCTION ACTIVITY DURING THE WINTER MONTHS. RESIN MANUFACTURERS REACTUT A SIMILAR MARKER AND CUT RESIN PRICES. THUS, THERE IS 'A PARADOX OF LOW PRICES DURING A PERIOD OF HIGH DEMAND, II. CUSTOMER SERVICE .AMP PHYSICAL DISTRIBUTION ' MOST ALL OF THE TERRITORIES REPORT COOPERATION FROM THE DENISON CUSTOMER SERVICE CENTER. THE WORKLOAD HAS INCREASED, HOWEVER, WITH THE RESIGNATION . OF HRS. GERRY PETRUS, A TRULY TO? PERFORMER. L AM CONCERNED ABOUT THE '' CUSTOMER SERVICE CENTER WORKLOAD IN THE COMING MONTHS WHEN WE ADD 13,000,000 LBS OF SMALL DIAMETER PVC CAPACITY (l/2"-4") AT DENISON AS WELL ' AS 5,000,000 LBS OF LARGER DIAMETER (6,'-12'>, ALSO SCHEDULE 40 FITTINGS WHICH WE WILL IMPORT FROM FORMOSA, MANY TERRITORIES REPORT OUTAGES OF PARTICULAR ITEMS AT CERTAIN TIMES, BUT A CHRONIC OUTAGE IN SMALL DIAMETER (2" AND SMALLER) WHICH HAS A SERIOUS OVERALL EFFECT ON DISTRIBUTOR STOCK BUSINESS. WHEN WE CANNOT FURNISH THE SMALL DIAMETERS TO 'DISTRIBUTOR STOCK ON A PARTICULAR SHIPMENT, WE LOSE ALSO THE LARCER DIAMETERS ON THAT SHIPMENT. ' > 1BG0 } : \ SC-JMM-2543 Z' III. COMPETITIVE ACTIVITIES --------- r' A3 PREVIOUSLY HECTICNED, PRICES HAVE DETERIORATED AND THEY CONTINUE TO DO SO. GENERAL LEVELS REFLECT $0,41/LB TO $0.43/13 DISTRIBUTOR COST, DEPENDING ON TYPE OF PIPE. '. ' OH SJVEHBER 4, HS QUOTED $4.49 ($0.41/LB) DIRECT TO THE CITY OP COVINGTON, TEHNESSEE, DIRECT ON 2,600' OP 10" SDK-21. OH NOVEMBER STB, ROBINTECJ] QUOTED $8.02 {?0,402/LB) TO INDUSTRIAL INTERNATIONAL ON 20,000' OP 12" "BLOK BRUTE" FOR A PROJECT IN PLANO, TEXAS. INDUSTRIAL INTERNATIONAL IS gat DISTRIBUTOR; AND THERE COULD BE NO DOOpT THAT THE ROBXJfTECH PRICE WOULD GET BACK TO US. XV, PBOPUCT LINES ` DIXON jJHCWN IS WORKING OH A PROJECT INVOLVING 51,000rOP 21" SERIES 10 "PERMA-LOC" HI MISSION, TEXAS- ALL OP THE GROUNDWORK HAS BEEN PERFORMED TO BEGIN DELIVERY EARLY IN FEBRUARY, 1984. THIS POINTS TO A STRONG HEED FOR A ZI" .SERIES 10 ' "PERMA--LOC" PTE IN DENISON. THE PROPOSED BAH OP ASBESTOS/CEMENT PIPE BY THE EPA IS OBVIOUSLY DISTURBING TO THE DISTRICT. THE PIPE IS PROFITABLE OUT OP DENISON AHD THE LACK OP n WOULD CREATE A SERIOUS VOID IB THE PRODUCT MIX. WE SHOULD BE JOINING IB EVERY EFFORT TO FIGHT THE PROPOSED BAN. . A qUESTIQNMKE WAS RECENTLY SECT OUT TO ALL SALESMEN REQUESTING INPUT OB DEVELOPING A STRATEGIC PLAN FOR "PEKMASXRAN", THANKS TO ALL WHO SUPPLIED INPUT. THE PLAN WILL BE SENT FROM THIS OFFICE WITHIN TWO WEEKS. ' V. .SALES .PROMOTION ON OCTOBER 17,18,19, WE EXHIBITED "PERMA-LOC" AT THE NATIONAL ASCB CONVENTION IN HOUSTON, TEXAS. WHY WE HAVE NOT EXHIBITED AT THE ASCB IN .THE PAST AMAZES ME. HIGH LEVEL ENGINEERS FROM JUST ABOUT EVERY MAJOR ENGINEERING FIRS' IN THE U.S, WERE IN ATTENDANCE, WE REALLY DID GIVE THE PRODUCT DECISION-MAKER EXPOSURE. AN ESTIMATED 3,000 ENGINEERS WERE IN ATTENDANCE. VI. CLAIMS WE HAVE A POTENTIAL CLAIM IB THE AMOUNT OF $10,000 FROM BOWLINE CONSTRUCTION COMPANY FOE OVERDEFLECTED SEWER PIPE. JOHN MILLER IS ON TO? OF THE PROJECT AND WILL MAKE RECOMMENDATIONS LEADING TO .CLAIM SETTLEMENT. ' E. H. PRQKSXE