An insidelook at the trcated lumber market in Texas

fl Ne COMPANY that's looking Y back at 1985 as the beginning of a period of transition is MG Building Materials in San Antonio, Tx. Richard Boorman, sales manager, views that year as one of extremes.

Presently, we'll look at those extremes through the eyes of the men who make MG move. They say that 1986 will complete the shift in the Texas market from home construction to one of remodeling and renovation. Boorman also predicts that we'll be witnessing a lot of activity in the treated wood market, particularly for brand name treated wood products.

Quite a few of the factors which influenced extremes in availability and price during the spring and summer of 1985 are still playing a role, albeit a minor one. However, the likelihood of several key factors coming together at one time was unforeseen. This caused an explo- sion of the yellow pine market in April and May which. just as quickly, went into a downturn during the summer.

The major culprit was the weatherArctic cold lasting into April. This unGxas chill postponed the usual spring buying surge and dammed the flow of customers until mid-April. When this flood of buyers was unleashed. they descended on the marketplace to the tune of an estimated 40 to 607c increase in business.The unusual demand resulted in a flurry of panic buying which lasted for almost six weeks.

After the rush on the lumber market. it wasn't long until the sweet smell of success began to turn a linle stale. Lumber reserves were depleted and new. raw stock was unavailable. All because of a tiny. linle known pest. the Southern Pine Beetle. The wide-spread effects of this throughout Texas. Louisiana and Mississippi caused extensive timber cuning and forced over-production of timber.

"In the first quarter of this year. we're seen a gradual increase in lumber prices." Boorman said. And, he added. "We think that spring buying this year will be more gradual." He pointed out that control measures for the Southern Pine Beetle have been showing early signs of success.

The very evident trend toward home renovation. not just in Texas. but nationwide. has resulted in increasing consumer preference for pressure treated lumber. Larry Gothues. president of MG. sees this trend taking the form of a definite consumer preference for brand-name pressure treated lumber.

Story at a Glance

Weather and southern pine beetle affected '85 market im. provement seen tor'86 le modeling, d-i-y swell demand for prcssure tteated products customers learning value ol brand nafiES.

Green Dooglos Flr Klln Drled llemloclt

Dimension lumber, studs, post & beams, plank, timbens to 40'. Unitized and paper wrapped.

Sawmills located at Molalla, Tillanrook, Toledo and Clackamas, Oregon, with shipping via SP, truck, ooean barge and for export.

o o

Coff toll lree (tOOl ,47-6633 when MG Building Materials of San Antonio elected to add a quality wood treating facility as a natural extension of its wholesale operation, they looked to Osmose. the management says. 'As the demand for pressure treated wood products increased in the San Antonio and fbxas markets. MG f'elt that the ease of operation. the high quality of the preservarive formulation and the production capability of the Osmose system could. and did, rneet our expectations." Grothues noted.

"We feel that pressure treated luntber should not be considered as a commodity item," he said.

'Apparently. the increased do-it-yourself rnarket has developed to the extent that customers are not buying what they perceive to be a "no-name" brand and. instead, are gravitating toward a clearly labeled product. MG is a licensed producer of Osmose brand pressure treated wood.

Grothues cautions buyers to stay away from suspect treated wood. This comes on the heels of the recent EPA controversy revolving around certain treated wood products. He noted the physical evidence of "possibly harrnful" surf'ace residues on "salt" treated wood as a greenish-white powder.

Grothues said that product liability problerns were one concern that he had about selling a questionable. unbranded treated wood. "Til be sure that what you're buying is clean and safe." he added. "look for a clean-to-the-touch. clearly stamped or labeled product and. check to be certain that it's treated with a CCA-C oxide pure preservative." The Osmose preservative used by MG Building Materials is considered one of the highest purity preservatives on the market. he said.

That's one of the major reasons why.

MG thinks that the narne of the game is to offbr their customers a quality product at a reasonable price and give the buyers accurate information which will help thenr make a smart choice and stand behind their products.

Boornran says that Osmose brand treated wood products are an "integral part of the do-it-yourself trend of the 80s." The cleanliness, safety and durability of the products produced by MG have played a major role in transforming southern yellow pine from a regional species to a nationally-pref-erred building material. It's idealll' suited to the outdoor-oriented lifestyle of today and. Boornran adds. "We f'eel that this trend will continue to capture a large rnarket share of the building materials category."