G-P chief is optinistic ahout | 972

New housingo which dominated the nation's construction industry during 1971, will continue at record levels in T972 "but non-residential and non-building construction will start catching up in the first six montJrs of this year," it has been fore cast by R. B. Pamplino chairman of Georgia-Pacific Corp.

He pointed out that, although a few areas'have reached their peak current potential in annual housing starts, "large geographic areas of the nation still have a long way to go and housing starts should maintain their record level."

He indicated that high-rise office and commercial construction "prob' ably peaked in l97I and the swing will be to the shopping c€nters, neighborhood offices and other fa' cilities that follow new housing, cre' ating an improved market for such building products as plywood and lumber."

He noted that remodeling, which expanded from a $14.8 billion an' nual rate in 1970 to a $16 billion rate near the end of 1971 for major alterationg repairs and additions, o'Is being understated because of the growing amount of do'it'Yourself work that is not recorded in such figures, and this type of housing im' provement will continue to grow."

C'oing beyond his six'month fore' cast themg he predicteil that "right now, it looks like the entire year 1972 should be outstanding for the nation's construction industry."

He said it is "fortunate that some companies in the plywood and lumber industries, including my own, have been modernizing and, to some extent, expanding capacity in order to meet anticipated demand. Inventories are minimal todayo even with full production that recently has been in excess of rated capacity for some products.

"[ feel that our industry will be able to meet tle demand and prices will be strong, although certainly within reasonable levels under the influence of normal supply and demand."

He pointed out that, despite sub. stantial price recovery before the price freeze, such building products as plywood, gypsum-board, particleboard and lumber o'are still priced generally at or below their levels of a decade or more ago."

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