LUMBER EXPENSIVE, SCARCE; SOME BUILDERS ARE TURNING TO STEEL

Some lumber company officials, when asked if lumber prices are up, have a stock answer: "Compared to what?"

Compared to a year ago, prices are up -- about 40 percent. But Compared to the winter months -- November through February -- lumber prices are down.

Lumber became a hot property last year, and the situation hasn't eased, thanks to a new surge in home building in Cape Girardeau and across the nation.

Lumber is in short supply, down about 60 percent from a year ago, and several lumber mills have closed. Nationwide in March, construction of single-family homes was up 11 percent over February.

In Cape Girardeau, single-family home permits are up more than 60 percent in the first quarter over the same three-month period of 1993, when only 20 permits were issued.

A total of 33 permits were issued during the first quarter of 1994, in the amount of $3.9 million, for an average of about $119,000. The average cost compares with the $119,700 during the first quarter of 1993.

The new-home situation looks even better in Cape Girardeau when April figures are tallied. Six permits already have been issued this month for a combined total of $847,820, or an average of more than $140,000. Two of the April permits were for $200,000-plus homes.

A spokesman for the National Homes Builders Association says builders still are hurting from the sky-high prices of lumber during the past winter. Lumber prices peaked in February, when it was listed on the Chicago Mercantile Exchange futures market at $464.70 per 1,000 board feet. Prices last week fell to $316 per 1,000 board feet.

The United States, one of the leading lumber producing countries in the world, uses more than 61 billion board feet of lumber every year -- more than any other country.

Lumber prices until early 1992 had been stable for a number of years, say people in the lumber industry, but rose astronomically over the past decade -- from $199 per 1,000 feet in 1984 to February's peak. Framing lumber prices were even higher, at $500 per 1,000 board feet in December 1993.

Lumber industry veterans say the main reason for the increase in prices is a shortage of timber, especially in the United States, where more and more forest land is being set aside for environmental purposes.

In the Pacific Northwest, huge tracts of land have been removed from forest production to protect some endangered species of owls.

Ben Mayo of Bentonville, Ark., president of the Mid-America Lumbermen's Association -- a five-state trade association of retail lumber dealers -- said the volume of wood withdrawn because of the spotted owl in one year was enough to construct 360,000 homes.

The cost of escalation is forcing some home buildings to seek alternative building materials.

Commercial buildings have long been using steel, but until recently, most single-family structures were built almost exclusively with lumber as the primary structure element.

That idea is changing.

Some home builders are considering substituting steel for wood in frame construction. A recent survey by the National Association of Home Builders indicated that half of the builders surveyed are considering using steel in their residential construction projects.

Nationally, however, only 12,000 homes were built with steel framing in 1993. That number is expected to jump to 75,000 this year, according to a survey by the American Iron and Steel Institute.

Steel homes are strong, says John F. Brown, founder and chairman of the Tri-Steel Co., which has designed and manufactured steel-framed homes since 1976. When Hurricane Iniki slammed into Hawaii last year, thousands of homes were destroyed and damages were estimated at $1 billion.

But four houses built on Kauai survived the savage winds with little or no damage. Those four homes were framed with steel instead of wood.

"This wasn't the first time that Mother Nature tested our homes," said John F. Brown, founder and chairman of Tri-Steel Co. "We have homes in 50 states and 23 foreign countries. Over the years, our homes have survived several hurricanes, tornadoes, earthquakes and fires."

In Cape Girardeau, Michael Ulrich, who operates Steel Concept Design, is a distributor for Tri-Steel structures headquartered in Denton, Texas.

"There are other advantages to steel frames," said Ulrich. "With nine-inch insulation, our homes can save up to 60 percent on energy bills over the conventional wood housing.

"People are surprised to see that steel-framed houses can look like any conventional home," said Ulrich. "Once the steel framing is erected, a steel home can be finished with brick, siding, stucco or your choice of exterior treatment and style, just like wood-framed homes."

Southwestern Bell Mobil System is looking to move from 837 N. Kingshighway.

The company has signed a contract for a new headquarters in the 3300 block of Gordonville Road, adjacent to Burger Lane Restaurant and across from West Park Mall.

"We held a groundbreaking at the site last week," said Jill Wilferth Smirl, area manager of Southwestern Bell Mobile Systems.

Attending the ceremony were officials from the St. Louis office of Southwestern Bell Mobile Systems.

Drury Southwest has been hired to erect the 4,5000-square-foot building.

A new antique mall soon will open at Charleston.

The new business will be on the second floor of WarSign Studio Gallery, 203 S. Main in Charleston.

Additional information is available by contacting Steven for Dotty Ward at the studio.

RightCHOICE Manager Care Inc., known simply as "The Company," a newly formed for-profit subsidiary of Blue Cross and Blue Shield of Missouri (BCBSMo), has filed a registration statement with the Securities and Exchange Commission for an initial public offering of its Class A Common Stock.

The new company was organized to own and operate all of the managed health care business of BCBSMo, the largest provider of health care benefits in Missouri. The Company has license to do business in 85 of 115 counties of Missouri under the name, "Alliance Blue Cross and Blue Shield," and to use the Blue Cross and Blue Shield service marks in its service area.

The Company will use the proceeds of the initial public offering for general corporate purposes, including expansion of the company's health care benefit plans and geographic base, both through internal growth and acquisitions.

Roy Heimburger, president/chief executive officer of BCBSMo and The Company, said "The restructuring will enhance our focus on managed care. The additional capital will enable BCBSMo and The Company to better serve current and future members."

"Equity capital is a necessary tool for the development of the new managed care products, programs and systems required in today's market," added Fred Brussee, executive vice president/chief operating officer of The Company.

The managing underwriters for the new stock offering are Morgan Stanley & Co. Inc., and Smith Barney Shearson Inc.

Adoption Search Assistance, a new firm to help adopted persons find their birth parents has opened in Cape Girardeau.

"I found my birth parents, and I have helped some of my friends locate friends," said Dana Evans, who opened the new business last week.

Evans, who attended Southeast Missouri State University, said she would offer a variety of services.

"I will conduct a full search, or I will serve as a consultant in organizing a search effort," she said.

Evans said she also is forming an adoptive support group in the area.

"We'll have the first meeting for this group May 17," she said.

Additional information on the support group or adoptive search business is available by calling 335-8209.

BOAT NOTES:

The slot payoff is up in Illinois.

The January report of the Illinois Gaming Board shows an average payout for the state's nine casinos of 92.17 percent, up from the 91.89 percent in December.

The Joliet Empress continued to lead the way, with a 94.15 percent payout, with Casino Queen of E. St. Louis second on the list at 93.79. Players International at Metropolis was at the bottom of the list at 90.8 percent.

In between were Harrah's at Joliet, 93.29 percent; Hollywood Casino at Aurora, 93.07; Casino Rock Island, 92.14 percent; Silver Eagle of East Dubuque, at 92.04; Par-A-Dice, East Peoria, 91.95 percent; and Alton Bell, 91.95 percent.