Over-the-counter sales promising

By William T. Robison President American Plywood Association

lQ rnucrURAL panel produc- p tion in the U.S., buoyed by rising demand, should reach at least 25 billion square feet, 3/8-inch basis, by the end of this year a l0o/o increase over 1985 production and the fourth consecutive annual production record for the panel industry. In spite of an expected slighl dip in housing starts, APA expects the strong production pace to be maintained in 1987.

The year ahead should be one of even more diversified penetration in nonhousing markets, particularly over-the-counter sales through home centers nationwide. This bright forecast takes into account the likelihood of a reduction from 1.85 million housing starts this year to 1.75 million in 1987, due in parr to tax changes impacting multifamily construction and to anticipated upward pressure on interest rates in the second halfofnext vear.

In 1987, in excess of 25 billion square feet of structural panel production should be required, as new promotional gains are added to a marketplace which already has strong demand momentum. The current wait-and-see attitude of consumers as they attempt to understand the new tax laws introduces a note of caution. but APA is forecasting thar the public will adjust to the tax changes and