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CONSTRUCTION SUPPLIERS' ASSOCIATION COMMENTS ON BUILDING MATERIAL PRICE GOUGING

 CONSTRUCTION SUPPLIERS' ASSOCIATION COMMENTS
 ON BUILDING MATERIAL PRICE GOUGING
 ATLANTA, Aug. 28 /PRNewswire/ -- In a prepared statement issued from the office of the Construction Suppliers' Association in Atlanta, Ervin W. Goodroe, executive vice president, said the vast majority of price gouging in building materials is coming from individuals -- not building material retailers.
 Goodroe said further: "Our members, as far as the suburbs of Atlanta, are having individuals with trucks coming to buy entire stocks of lumber and plywoods -- at any price -- to truck to Florida and Louisiana for profiteering. We are asking the retailers, and they are in agreement, not to sell to these individuals."
 He said: "Home Depot has announced they will maintain pre-Andrew prices on these items. We commend Home Depot for this position. They are, and always have been, good corporate citizens. This position by Home Depot has put severe pressure on building material dealers to do the same. Simple economics will not allow the average building supply house to take this position. While the position will certainly cost Home Depot profits, the impact on Home Depot will not be nearly as great as will the impact on the building material dealers.
 "I have no way of knowing what percentage of Home Depot sales are made up of lumber and plywood. I would guess 15 to 20 percent. With the building material dealer, these products constitute 75 to 90 percent of their sales. With prices increasing from the mills by 25 to 50 percent in just a few days, they cannot absorb this increase.
 "Andrew has exacerbated an already serious problem. Production of lumber and plywood products was already at an all-time low due to a sluggish home building market. Due to low demands and environmental issues, many mills have closed and/or shut down due to shortages of timber. The already tentative supply chain has been shattered by the tremendous demand created by Andrew," he continued.
 "The public can rest assured that building material dealers will, as they have always done, continue to be good citizens of the community. They will not be a part of any plan to capitalize on the plight of the victims of Andrew. As a matter of fact, we are working diligently to put together loads of building materials to provide help to these victims," he concluded.
 -0- 8/28/92
 /CONTACT: Erv Goodroe of the Construction Suppliers' Association, 404-653-0178/ CO: Construction Suppliers' Association ST: Georgia IN: REA SU:


BN-EA -- AT019 -- 4602 08/28/92 16:58 EDT
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Publication:PR Newswire
Date:Aug 28, 1992
Words:417
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