Redwood industry confident

By L. Keith Lanning Executive Vice President & General Manager California Redwood Association

I N tlZS, after the lasr Redwood I National Park expansion, several industry obs-ervers were sounding a death knell for the redwood lumber industry. Contrary to predictions. the redwood industry has shown the same resilience and tenacity as the trees that constitute its resource. Majorredwood producers recently invested millions of dollars in new sawmills, a certain indication of their confidence. Many mills use the most advanced computer-aided equip- ment. Most important, redwood production has increased steadily. This makes me feel obliged to com- ment as Mark Twain did when he cabled the Associated Press from London saying: "The reports of my death are greatly exaggerated."

In 1986. the California Redwood Association conducted a survev of all redwood producers to help usinticipate the marketing needs of the industry. I'd like to share the results with you. They are interesting and, rn so.me respects, perhaps a little surpnstng.

In a given year, redwood accounts for only 2o/o to 30/o of U.S. softwood production which lies in the range of 39 billion board feet. The numbers may seem deceptive because redwood is highly visible in the marker place and in applications. Another figure, percentage of sales, provides a different perspective. While redwood accounts for 20lo to 30/o of production, it usually accounts for be- tween 40lo and 60/o of sales, reflecting redwood's higher value and greater profit margin.

From a modest level of 760 million board feet in 1982, redwood production has increased gradually and is expected to exceed one billion board feet in 1988 where it will remain relatively steady for the remainder of this decade and into the next. The primary reason for this 4l% increasb is the coming of age of many young growth redwood forests. Many lands that have been harvested and reforested now hold timber of a marketable age. This is a trend that will continue into the next century.

Redwood lumber is divided into two major product categories. There are the clear. architectural grades, used for siding, interior paneling and millwork and there are the knottY, garden grades, used for decks and outdoor applications. Naturally, the grade mix developed from young growth timber is different from old growth timber, but one of our survey's surprises is that while prod-

Story at a Glance

Redwood industry modernizing, increasing Production amount of marketable timberincreasing . . availabil' ity assured into next century. specialtY status to continue. uction increases, the grade mix will stay proportionate, with about 200/o architectural grades and 800/o garden grades.

These figures bear a few messages for lumber dealers. First of all, redwood will continue to be available in increasing quantity well into the next century. The grade mix for the next five to ten years will remain the same, which means redwood will keep its position as the most highly desired product for the active markets of siding, interior paneling and outdoor decks.

While it will continue to be readily available, redwood will never become a commodity. Redwood production will remain small compared to the total softwood Production of U.S. and Canada. More important, redwood's status as a specialty wood is due to aesthetic and physical properties which are unmatched by other woods. The bottom line is lumber retailers stocking redwood will continue to make a greater profit. from redwood than other competing species.