Trcmendous trcated wood potential

By Eric Yeadon President American Wood Preservers Bureau

APPROXIMATELY 70% of all

A copper chrome arsenare (CCA) treated lumber in the United States is monitored by the American Wood Preservers Bureau (AWPB), under LP-2 and LP-22 quality control procedures. In 1988, the industry reported an all-time high of some 3.4 billion board feet.

However, lumber and timber treatments declined significantly in 1989, approaching 20% less than last year, and AWPB anticipates the reported volume in 1989 to be about 2.82 billion board feet.

Treating plants in Georgia and Virginia, which generally supply the northeastern markets, appear to be showing the most significant reduction. West coast treaters have enjoyed a good year, generally considered to be due to the less mature but still expanding market in their service areas, and remain cautiously optimistic for 1990.

While Southern treaters appear to be concerned for the winter treating program and do not expect dealers to commit to their normal commitments, the AWPB expects to see some recovery in 1990 to a volume around 3 billion board feet, still some l0o/o short of 1988 levels.

A significant issue facing our industry in the '90s will be the growing public concern for the desire to protect the environment. Unfortunately, the forest products industry seems to be cast in a role opposite those who are concerned about the

The challenges of the '90s are significant as we learn to manage the problems created by the federal budget deficit and increasing environmental restrictions. Our industry, however, should remain relatively strong given present demand projections. The ongoing application of technology to better serve customers in view of changing expectations and raw material availability issues offers a variety of exciting opportunities.

Many factors have contributed to this year's decline, including a healthy inventory position at the beginning of the year and an unusually wet spring. But most treaters and retailers, acknowledging the tremendous market potential for treated wood, are gearing up for next season, taking advantage of opportunities that were missed in 1989.

Story at a Glance

Treating industry faces lower market potential, though opportunities exist to recover the volume lost in'89.