New trends in supply & demand

By Hank Ricklefs General Sales Manager Simpson Door Company

IIAJOR IUlconcern

for energy awareness among all building materials manufacturers and contractors will continue in 1985. Some products will lose favor because they are energy wasters, while new or adapted energywise products will be introduced. The cost of producing more energy-efficient materials will have to be weighed carefully against the real benefits provided, if the public is going to buy the more efficient materials.

The industry also must be keenly aware of traditional aesthetics which seem to counterbalance energy consciousness. For example, consumers still show a preference for traditional materials and techniques such as wood doors with leaded glass inserts. This means new product innovations will have to combine the best of both aesthetics and energy conservation.

Economic pressures for space efficiency (both land costs and building costs) will stimulate construction of smaller units and more multi-family dwellings. Builders will have to provide increased amenities and better aesthetics to balance the "value perception" among home buyers. Home buyers will demand more features and better quality to offset shrinking home size.

Strengfh in the U. S. building industry along with the soaring value of the dollar, expected to continue through 1985, will draw increasing attention from foreign manufacturers who face stagnant domestic markets. This trend is already evident in the influx of products including Canadian dimension lumber, Asian entry doors and Brazilian hardboard products.

The emergence of the repair and remodel market with better profit potential and greater stability than new construction is a long-term trend. Repair and remodel has all the economic factors going for it.

The building materials industry can no longer sit back and fill orders. It is necessary to educate builders and consumers about new products and tech-

Lanning

(Continued from page 10) sales opportunity, the amenities of decks, patios, pool areas and saunas are an excellent market for other redwood products.

Affordable smaller houses, smaller lots and zero lot-line site plans are also indicated. They are made more salable with quality amenities like privacy fences, screens and trellised outdoor living areas.

Remodeling, another good redwood market, should continue strong especially where there is availability of equity mortgages and shorter-term variable rates.

The redwood industry itself will continue to produce a large amount of young-growth lumber-knot grades well suited to the remodeling, niques for using them. Continuing demand must be created through the use of merchandising programs, advertising, and publicity.

Story at a Glance

Energy awareness, economic pressures, foreign competi. tion, changing technologies trends of the future...builders and consumers need education ...demand lor products must be stimulated.

outdoor living and add-on projects that are indicated by the affordability crunch. In an industry move to address the affordable siding market, young-growth redwood is being dried and cut to pattern, creating lowerpriced redwood sidings that have sold well and should continue strong.

At retail level, the two-income family trend indicates more shoulder trade and d-i-y purchases by knowledgeable, quality<onscious male and female shoppers encouraged by industry advertising and public television instructional programming.

In the custom home market and for low-rise commercial/institutional uses where affordability is not a major concern, continued sales of fine quality redwood siding and interior paneling are indicated.