Southern pine slips into down cycle

By Karl W. Lindberg President Southern Forest Products Association

f IKE so many other industries. the I-lbusiness climate for producers of southern pine lumber remains most challenging. Just two years ago, during 1999, our industry established an all-time production record of 16.92 billion bd. ft., encouraged by falling mortgage rates. Eventually, lumber inventories exceeded demand in the closing quarter of 2000, as hints of a cyclical downturn in markets became a reality. Total production for 2000 remained a robust 16.67 billion bd. ft.

A relatively healthy housing market through the opening quarters of 2001 is what many observers believe kept our nation's economy from falling into a recession. True, housing was strong as interest rates fell further. but lumber producers were squeezed to make a profit considering their high fixed costs. Throughout 2001, a good week in the lumber business was a rare

Even a steady repair and remodeling market cannot replace the volume of lumber utilized in new housing starts. event, at best, aggravated by weak markets, transportation and labor shortages. The downward production trends continued through last summer; SFPA estimates total 2001 southern pine production to be 15.6 billion bd. ft., or a decline of 6.77o.

The economic slowdown has now officially become a recession. The events of Sept. I I are quite likely to have out the economic nail in the lum- ber industry's coffin. However brief this recession's duration, the lumber industry may be one of the last sectors to recover. Quite simply, supply still exceeds demand for lumber at this time. In light of rising unemployment and declining consumer confidence, potential home buyers may delay purchasing new homes, despite the lowest mortgage rates in decades. Even a steady repair and remodeling market cannot replace the volume of lumber utilized in new housing starts, a figure that continues to drop monthly.

SFPA member companies produce half of the nation's southern pine lumber, and their outlook for 2002 is, at best, guarded. Most companies have curtailed operations and many mills have been shut down. If the poor economic climate persists, permanent closures are a distinct possibility.

A number of factors will influence business in 2002. Softwood imports from Canada continue to impact southern pine's traditional framing markets. The industry's Coalition for Fair Lumber Imports was successful in obtaining a 12.37o countervailing duty while negotiations continue for a longterTn agreement.

Another hurdle for southern pine producers is increased imports from overseas producers. Competing softwood species from Europe and South American continue to adversely impact our domestic market. A strong dollar and foreign competitors have also hampered southern pine exports throughout 2001. Southern pine was once gaining modest market share in Spain, but that is now being challenged by increased imports of African and European species. Kilndried southern pine is now recognized in the materials handline markets as the logical choice to meet new phytosanitary requirements for shipments to the European Union. SFPA's efforts have explained the new regulations to pallet and crate manufacturers nationwide.

Treated lumber markets are likewise in a state of flux, but for a variety of different reasons. The EPA is expected to release its updated risk assessment for CCA-treated wood products early in 2002. A favorable determination from the EPA will aid the treating industry's campaign to refute negative consumer publicity and ongoing efforts to ban treated wood.

SFPA is actively participating in the newly formed Treated Wood Council (TWC) to counter environmental misinformation and to educate audiences about the merits of treated products, emphasizing their proven service track record of more than 75 years. TWC has provided the EPA's Scientific Advisory Panel with scientific studies supporting the safe use of CCA-treated products. The treating industry has cooperated with EPA to successfully launch an expanded consumer safety awareness program now highly visible at lumber retail outlets.

SFPA estimates treated lumber production to total 5.9 billion bd. ft. in 2001, dropping to 5.25 billion bd. ft. in 2002. Hopefully, the optimistic forecasters will be correct and a recovery will be underway during the second half of 2002.

- A complete summary- of the associtttion's activities and accomplishments is contained in the 2001 SFPA Annual Report. A free cop1, is available .from SFPA, P.O. Box 641700, Kenner, La. 70064, (504) 443-4464, or www.sfpa.org.

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Waste Not, Want Nol, a Port Townsend, Wa.-based buyer and seller of new and used building materials, is adding a location this month in the former Rose Lumber facility in Port Angeles, Wa.; Rose Lumber closed last summer after 19 years ...

Pini Hardwcre, Novato, Ca., plans to relocate to a new 30,000sq. ft. store in downtown Novato; an August opening is expected

Barr Lumber Co.,Yacca Valley, ca., submitted plans to expand its lumber storage capacity to an adjacent vacant lot ...

Lowe's Cos. opens a new store the middle of this month in West Hills, Ca. (Peter Reed, mgr.) ... the chain is considering sites in Visalia and Poway, Ca., and purchased parcels of land in Millcreek, Wa., to build a new store

Lowe's has broken ground on a 150,000-sq. ft. store in Hillsboro, Or.; received the go-ahead to build on the grounds of the former N orthrop Grumman aerospace plant in Hawthorne, Ca., and has begun work on a new 150,000-sq. ft. store one half mile from its current 100,000-sq. ft. location in Silverdale. Wa.. which will close when the new store is opened this fall...

Home Depot opens new home centers this month in Park City, Ut.; Lewiston, Id.; Imperial Marketplace in San Diego, Paramount, Tracy and its second in Escondido. Ca.: its third in Glendale, Az., and Expo Design Centers in Inglewood and San Jose. Ca.

Home Depot is facing opposi- tion from shop owners in Oceanside, Ca., over a proposed home center there and is negotiating with an auto dealership on Fulton Ave. in Sacramento. Ca.. in hopes of buying the site for future development...

Home Depot has begun construction on a 114,968'sq. ft. store with tool rental and garden center in Camarilloo Ca., anticipating an April completion ...

Wnormnrnt/nrxuFr$onrns

Tata Enterprises, Berkeley, Ca., is opening a new warehouse and sales office in Carson, Ca., this month

Baskins Forest Products is moving its door operations this month from Diamond Springs, Ca., to Redding, Ca.

Pristina Pine has acquired the cut stock operations of Dellen Wood Producfs, Spokane, Wa.

Cherakee Wood Producls hopes to add 80,000 sq. ft. of office and milling space to its 20,000-sq. ft. facility in Upland, Ca.; the proposed expansion hinges on current landlord Boyd Lumber selling the property to developer PC Lang Properties ...

Crown Pacific, Portland, Or., is opening a new office in St. Louis, Mo.: Kevin Conrad, sales

Delta Distributioru is the new name of AbeI Building MaterialsReload, Stockton, Ca.

Year-end mill curtailments, according to Random Lengths, included Louisiana-Pacific's Saratoga, Wy., sawmill, three weeks; Portac 's Tacoma, Wa., sawmill and planer, three weeks; Portac's Beaver, Wa., planer, one week; Alder Creek Lumber Co.'s Portland, Or., sawmill and planer, two weeks; Stimson Lumber Co.'s sawmill at Forest Grove, 0r., two weeks; Stimson's sawmill at Clatskanie, Or., 10 days; Friesen Lumber Co.'s St. Helens, Or., sawmill, l0 days; Simpson Timber

Co.'s Commencement Bay sawmill and planer, Tacomao Wa., 10 days; Vaagen Bros. Lumber's sawmills and planers in Colville and Republic, Wa., 10 days; Schmidbauer Lumber, Eureka, Ca., 10 days, and Weyerhaeuser's Cottage Grove, Or., sawmill, one week

Liberty Hardware Manufacturing Corp., Winston-Salem, N.C.. opened a 65,000-sq. ft. West Coast distribution center in Fontana, Ca.; Liberty Hardware is a subsidiary of Masco Corp....

James Hardie Building Products, Mission Viejo, Ca., now operates eight fiber cement plants in the U.S. with the acquisition of Cemplank's leased facilities in Summerville, S.C., and Blandon, Pa.; Cemplank will operate as a separate division of Hardie

Plum Creek Timber Co., Seattle, Wa., plans to use timberlands near Atlanta, Ga., and Daytona Beach, Fl., for commercial and/or residential development...

CraftMaster Manufacturing, a stand-alone company formed after the recent acquisition of Masonite Corp. by Premdpr, will now exclusively manufacture CraftMaster door designs and MiraTEC treated exterior composite trim ...

APA-The Engineered Wood Association has closed its Hamburg, Germany, office ...

Anniversari es: C o lumbia F o re st Products, Portland, Or., 45th ...

Housing starts in November (latest figures) surged 8Vo to aseasonally adjusted annual rate of 1.645 million ... single-family starts jumpe d 3Vo ta a rate of 1.261 million; multi-family with 5+ units was at a 346,000 pace ... building permits increased 5Vo to l.564 million

(Continued on p. 42)

Listings are often submitted months in advance. Always verify dates and ktcations with sponsor befttre making pktns to attend.

Fmumv

Los Angeles Hardwood Lumberman's Club - Jan. 10, meeting, Steven's Steakhouse, Commerce, Ca.; (323) 723-9856.

National Hardwood Lumber Association - Jan. 10.12, annual convention/exposition, Memphis, Tn.; (800) 933-03 18.

International Housewares Show - Jan. 13-15, McCormick Place, Chicago, Il.; (847) 292-4200.

Mountain States Lumber & Building Material Dealers Assn.Jan. 14-17, estimating courses, Denver, Co.; (800) 365-0919.

Black Bart Hoo-Hoo Club - Jan. 16, industry night, Redwood Valley, Ca.; (707) 462-3700.

California Forestry Association - Jan. 16-19, annual meeting, Hyatt Fishermen's Wharf, San Francisco, Ca.; (916) 444-6592.

Humboldt Hoo-Hoo Club - Jan. 17, crab feed, Eureka Inn, Eureka, Ca.; (707) 268-3085.

Shasta Cascade Hoo-Hoo Club - Jan. 18, initiation, Best Western, Redding, Ca.; (530) 824-1118.

Western Pallet Association - Jan. 18-22, annual meeting, Puerta Vallarta, Mexico; (520) 625-6267.

Roof Coatings Manufacturers Association - Jan. 19-22, anrrtal conference and expo, Tucson, Az.; (202) 785-3232.

American Hardware Manufacturers Association - Jan. 20'22, manufacturing excellence conference, Loews Ventana Canyon Resort, Tuscon, Az.; (847) 605- 1025.

International Mass Retail Association - Jan. 2O-22, leadership forum, Scottsdale, Az; (703) 841-2300.

Western Building Material Association - Jan. 24-25, convention, DoubleTree Lloyd Center, Portland, Or.; (888) 551-9262.

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American Architectural Manufacturers Association - Jan, 2730, annual meeting, Palm Springs, Ca;(847) 303-5664.

National Association of Wholesaler-Distributors - Jan. 28-30, annual meeting, Washington, D.C.; (202) 872-0885.

Western Decorating Show - Jan. 29-30, Riviera Hotel & Casino, Las Vegas, Nv.; (800) 737-0107.

Mountain States Lumber & Building Material Dealers Association - Jan. 29-31, Bill Darling estimating courses, Albuquerque, N.M.; (800) 365-09 I 9.

Western Hardwood Association - Jan. 31, OSU forestry summit, Corvallis, Or.; (360) 835-1600.

Do it Best Corp. - Jan. 31- Feb. 1, winter market, Opryland Hotel. Kissimmee. Fl.: (219) 748-5300.

Lrrnumv

TruServ Corp. - Feb 1-4, spring market, Dallas Convention Center, Dallas, Tx.; (773) 695-5000.

Emergent Building Technologies Conference - Feb. 3-5, Las Vegas, Nv.; (800) 689-2900.

International Mass Retail Assn. - Feb. 5-8, store operations/ human resources seminar, San Diego, Ca.; (703) 841-2300.

Western Building Material Association - Feb. 8-10, Young Westerners Conference, DoubleTree Columbia River Inn, Portland, Or.; (888) 551-9262.

International Builders Show - Feb. 8-11, World Congress Center, Atlanta, Ga.; (800) 368-5242.

Mountain States Lumber & Building Material Dealers Association - Feb. 10, W.O.O.D. Committee bowling tournament, Crown Lanes, Denver, Co.; (800) 365-0919.

FenceTech 2002 - Feb. 11-14, Las Vegas Convention Center, Las Vegas, Nv.; (800) 822-4342.

Lumber Association of California & Nevada - Feb. 12, Know Your Lumber seminars, Morgan Hill, Ca.; Feb. 13, Burbank,

Western Buitding Material Association has enlisted Bill Lee, Lee Resources, Inc., to speak at its rescheduled annual convention and buying show Jan. 24-25 at the

Flooring Group Ups Training

The National Oak Flooring Manufacturer's Association has established an education committee designed to educate and train member mi11 employees.

The committee, chaired by Beth Maxwell, Maxwell Hardwood Flooring. Monticello. Ar.. and John Jackson, Cumberland Lumber and Manufacturing, McMinnville, Tn., will provide training in production techniques and grading regulations.

They will seek to improve on current grader training with the use of multi-media technologies and new bilingual resources.

NOFMA's grader training manual has been translated into Spanish and a video accompaniment is in production.

"We've established this new committee to ensure our member mills have access to necessary training," said NOFMA executive director Stan Elberg.

All NOFMA-sponsored programs are for member personnel only.

DoubleTree Lloyd Center, Portland, Or.

The Young Westerners Conference Feb. 8-10 at the DoubleTree Columbia River Inn. Portland. will feature Ruth Grubbs, Profit Builders, Inc.

Lumber Association of California & Nevada is staging Know Your Lumber seminars Feb. 12 at the Inn at

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Morgan Hill, Morgan Hill, Ca., and Feb. 13 at the Hilton Burbank Airport & Conference Center, Burbank, Ca. Rich Geary and Frank Stewart, Western Wood Products Association. are again the leaders.

Mountain States Lumber & Building Material Dealers Association's Colorado WOOD Committee recognized Gordon Harbert, Harbert Lumber Co., Grand Junction, as its Lumberman of the Year during its year-end party at the Mile High Stadium Club at Invesco Field.

The committee's next function is a bowling tournament Feb. l0 at Denver's Crown Lanes.

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New Paint Program Makes A Splash

Ace Hardware Corp. has unveiled a dramatic new look for its stores' paint departments. Named "Color Your Life," it consists of a new decor package and layout, plus increased training for store associates.

The center of the new layout consists of an attractive paint counter with woodgrain on the front and a stainless steel top with a complementary back counter. The area also includes wood floorins that follows the curve of the paint counter and sets the working area apart from the rest of the department. ln addition, hanging fixtures illuminate the paint counter.

Other decor elements include special track lighting that highlights overhead signage and informational signs that run on either side of the main paint aisle, helping answer customers' questions.

Reduced lmpact Logging Analyzed

Sustainable forest management through Reduced Impact Logging will be a focus of the International Wood Products Association's upcoming 46th annual convention, World of Wood2002.

During the convention April l7-19 in Indian Wells (Palm Springs), Ca., Art Klassen, Southeast Asia project manager, Tropical Forest Foundation, will present "Reduced Impact Logging (RIL) Goes Global."

According to TFF, RIL's cost in tropical forests ts l2o/o less than the conventional logging method, and land disturbed by RIL is nearly half. "For the past several years the Tropical Forest Foundation has conducted training seminars in the Brazilian Amazon teaching RIL practices. Without question, these practices are ecologically and environmentally friendly," said TFF executive director Keister Evans. "Damage to the forest is minimized while timber harvest yields are usually increased."

The Indonesia program began in January 2000. It builds on the expertise and methods developed in the Brazil program, but will evolve in the context of the many Indonesian industry, research, and policy organizations already grappling with sustainable forestry issues.

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PWP Buys Oregon Treater

Pacific Wood Preserving Cos., Bakersfield, Ca., has acquired the Sheridan, Or., treating plant of Taylor Lumber & Treating.

The facility should be operational by March l, after it is converted from a utility pole treating operation to one that specializes in environmentally treated poles, lumber and timbers.

"This acquisition will give us more treating capacity in the Western U.S. than any other wood preserver," said president Dick Jackson.

Jackson also added that the Sheridan facility is located near several sawmills that produce and ship into large housing markets-providing the company with excellent freight advantages.

When the plant is fully operational, it will employ between 25-40 people.

Taylor Lumber & Treating had been looking for a buyer since declaring Chapter I I bankruptcy this past summer.

PWP also operates treating plants in Bakersfield, Eloy, Az., and Silver Springs, Nv.

TVBS Closes Gresham Store

Tualatin Valley Builders Supply has closed its Gresham. Or.. store, which had been liquidating the chain's remaining d-i-y inventory.

During the summer, TVBS decided to focus exclusively on the pro market and transferred all consumer-related merchandise from its seven retail units and contractor yards to Gresham.

In October, TVBS closed a window and door shop and lumberyard in Aloha, Or., as well as a wall panel manufacturing plant in Ridgefield, Wa., relocating operations to headquarters in Lake Oswego, Or.

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Big Valley Lumber Mill Sold

Big Valley Lumber Co. has sold its Bieber, Ca., mill to new owners who have restarted the facility as Shasta Green. Inc.

The Bieber mill was bought during auction Nov. 28-29 by Gary Franklin. Sawmill production began on Dec. l7 and the company expects the planer to be up and running some time in January.

Danny Osborne, who will stay on as Shasta Green's sales mgr., said he appreciated all those who had helped and worked with Big Valley Lumber Co. over the past 20 years. Shasta Green is based in Burnev. Ca.