WWPA Projects Strong Year For Lumber

Americans were estimated to use more lumber during 2004 than any time in history, thanks to strong housing markets and an improving economy, according to the Western Wood Products Association.

While demand will fall back moderately this year, it will still be a solid year for lumber, WWPA forecasts.

The Portland, Or.-based trade association estimated lumber demand in 2004 increased 4.8Vo to 59.7 billion bd. ft., shattering the previous record of 57 billion bd. ft. set in 2003. It is the sixth time in the past eight years that lumber demand has set a new record.

The red-hot home construction market has fueled demand increases and WWPA is predicting housing starts will reach nearly 2 million this year. Lumber used in residential construction is expected to reach an alltime high of 25.6 billion bd. ft.

With interest rates expected to rise in 2005, demand is forecast to dip by 4.2Vo to 57.2 billion bd. ft. Even with the decline, the volume would be the second highest ever. WWPA said housing starts should total 1.8 million for 2005, down6Vo.

Lumber production at western sawmills is on pace to reach 18.3 billion bd. ft. in 2004, a l2-year high for the region. WWPA predicts production in the Southern U.S. at 17.5 billion bd. ft., a new record volume. In 2005, lumber production in both the West and South are expected to each drop by about37o.

Lumber imports also moved into record territory in 2004. Some 22.6 billion bd. ft. of lumber was imported to the U.S., or 38Vo of the supply.

Imports from Canada should reach

Montana Mill Wins Forestland

Pyramid Mountain Lumber Co., Seeley Lake, Mt., turned in the winning - and the only bid - for a logging contract in the Flathead National Forest. Pyramid will log about 1,100 of the 11,100 acres burned by the 2003 Crazy Horse fire.

During the fire, 5,000 acres burned in the Mission Mountains Wilderness, and an additional 2,200 acres burned on land owned by Plum Creek Lumber.

20 million for the first time ever. while lumber from Europe, Latin America and New Zealand will increase to 2.2 billion bd. ft.

In 2005, imports are expected to decrease by 47o to 21.7 billion bd. ft. Slower demand, plus impacts from exchange rates which make imported products more expensive. are anticipated to put downward pressure on lumber import volumes.

U.S. lumber exports will remain below I billion bd. ft. in 2004 and then rise modestly the following year due to a weaker U.S. dollar and more competiti ve domestic prices.

As part of the winning bid agreement, Pyramid will use helicopters and skyline yarding to access the logs, and will complete much of the work during the winter.

The sale of the forestland was the last associated with the 2003 Crazy Horse fire.

Decisions are still being made about salvaging logs from the Robert, Wedge and Hungry Horse fires, all of which occurred in 2003.

As a nampton Affiliates regutar customer, you'll never have to worry about tight supplies, delayed shipments or substandard product. our streamlined operation is tuned to get you exactly what you need and deliver it when and where you need it - without fail. I This is because we run a fully integrated business, from tree planting and resource management to relationship.based brokerage and shipping services. Supply is stronger than ever. Since 1997 we've production to r.4 billion board feet, making us the fifth largest producer in the U.S. Hampton's mills are among the most efficient in the industry - our Willamina mill is one of the top volume producers in the country. r With tight inventory control and smoothly coordinated distribution using our railcar fleet, we keep this dependable supply moving to our customers to meet just-in-

New Quarters For Truss Plant

Univcrsal Forest Products has acquired Willamettc Inclustries' former laminated beam plant in Woodburn. Or.. that Weycrhacuscr had shutterccl soon afier takin-e ovcr Willarnette ncarl,v three vears a-qo.

UFPI rvill relocate its lcased truss plant in Woodburn to the nervly acquired 120.000-sq. ft. industrial building. The rnanul'acturer had becn looking fbr a "permanent home" sincc it shuttered its Bend. Or., facility in April to con\()lidate operations irr Woodburn.

Union Pacific Still Backed Up

Logjarns have been occurring for months norv rail lincs in Southern California and across thc West Coast.

"lt's terrible. We'rc seeing eightto-10 day delays," said Union Pacific customer Brian Horor'vitz.

While thc situation has improved a little. eongr'stion ancl serr iec issucs are still a conccrn.

According to Union Pacific, the shipping problems have occurred because of a surge in the U.S. ecorlomy and a rash of rctirements due to changes in retail labor law that left the company'uvith a crerv shortagc.

Combined. this causcd railroad corrpany to delay its shiprne nts.

Union Pacific has bcen hiring morc *,orkers iind buying new locornotives. Still. thc situation has not improvccl nruch ancl thc company''s stock pricc has dropped.

Accordin-s to A.G. Eduards & Sons lnc. analyst Donald Broughton, Union Pacific "isn't even r'villing to suggest it has a plan or has a time frame in rvhich '"ve should expcct to see servicc begin to improve."

Cascade Takes Crown Land

Over -500.000 acres of industrial timberland in Oregon and Washington are now the property ol' Cascade Timberlands LLC.

Cascade officially took ownership of the land from Crolvn Pacil'ic Parnters. LP. rvhich filed fbr Chapter I I bankruptcy a year and a half ago.

Included are 293,000 acres in Bend, Or.: 147.000 acre s in the Hamilton tree farm in Washington, and 82,000 acres in thc nofthrvest corner of Washington's Olympic Peninsula.

Olympic Rcsource Managcment LLC. Poulsbo. Wa.. is ttou mlnaging the timberlands.

The court has appointcd a liquidating trustcc to administer the final affairs of C-'rorvn Pacific LP.

Ace Tops Hardware Ranks

Ace Hardu'are Corp.. Oak Brook. Il.. has earned thc top spot amongst hurdrrare irrtd lumber coopcrati\c\ on the National Cooperative Bank list of the nation's 100 highest revenue-earning co-ops. Ace r.vas ranked seventh.

NCB's rankings are based on rcvenue figures fbr 2003. Ace had rcvenucs of 53.159 billion in 2003. The rankings are the only annual report that trucks the highcst revenuc earning co-ops.

"We are quite pleased to maintain our position as the leading hardrvare and lurnber cooperative in the nation," said Natalie Danaher, Ace spokesw()mar). "With 100 cooperati\es on the list carning approxirnately $117.4 billion in combined revenue. the NCB study demclnstratcs the vital role cooperiitives play in the economy.''

Also making the list rvere Do It Best Corp. (9), True Value Corp. ( I 1). ENAP. Inc. (53), Progressive Affiliatcd Lumberman Co-op Inc. (83). and Allied Buildin-e Stores. Inc. (92).