TFeated lumber changes

By Victor E. llndenhelm President American Wtxil Preservers lnstitute

As l see lt, tour lssues wlrr nave a Flprofound impact on how well the treated lumber industry does in 1992.

First. economic conditions will influence consumer purchasing decisions, including purchases of treated lumber, consequently affecting wholesale orders and inventory levels up the line to the untreated wood supplier and the treating plant. Many economists are predicting a better year in 1992.

Resource Information Systems, Inc. (RISI) foresees a sub-par but solid recovery in 1992, continuing through 1994, with GNP growing 2.67o in'92 and 3.5Vo in '93. RISI's projection for total l99l lumber consumption is 43 BBF; for 1992 it is projected to increase by about l3%o to 7.9 BBF.

Story at a Glance

7.9 BBF of treated lumber and timber demand in 1992...consumer safety question must be answered positively...timber supply legislation important for supply...treating industry will take new approaches.

Second, regulatory compliance requirements at the treating plants could have some impact on production and capacity. The U.S. Environmental Protection Agency recently established minimum design and operating standards for drip pads in treating plant process areas. While AWPI and the wood preserving industry have been successful in obtaining additional time to upgrade existing pads and build new pads, the timing is still tight, and the costs are still significant. However, the good news is that most lumber treaters will be up and running in time for the 1992 construction season. Only treating plant wastes are regulated, not the product or customers.

Third, the timber supply issue is still not resolved. The Forests and Families Protection Act (H.R. 2463, S. ll-56) addresses timber supply certainty, environmental protection and worker assistance in the West and purports to protect the spotted owl. Resolution could set a precedent for protection of the red-cockaded woodpecker in the South.

The other piece of legislation to watch, with a bearing on timber supply is the Private Property Rights Act, which limits the taking of private property by govemment.

Fourth, public perceptions of treated wood products must be understood and addrcssed. In general, people like treated wood products for many reasons and will continue to use them. But, questions about the chemicals in the wood and the proper handling and disposal of treated lumber must be answered. People want to know, "ls this product safe'1" As an industry, we need to answer this question clearly, forcefully and concisely, based on sound science. lf we cannot, we will lose market share. ln short, what I see in the future1992 and beyond-for the treated lumber market, is a new way of thinking and a new way of doing business. This will be rellected in more sophisticated marketing, a new emphasis on quality, a heightened sensitivity to public perceptions and adaption to change.