The whys of redwood's market stability

by Tom Malarkey Vice President - Sales The Pacific Lumber Company

f f ATURE takes her time to l!produce a redwood tree, and The Pacific Lumber Co. takes its time converting that tree into redwood products at its manufacturing complex in Scotia, Ca.

There are a,number of reasons why a considerable length of production time is required. It is advantageous for wholesalers and retailers to be aware of these and to know how redwood lumler production varies from that of other softwood species. These production requirements affect not only the products but also the marketing practices of redwood lumber.

A mature redwood tree contains a higher percentage of water than any other softwood species-in extreme instances having twice as much water, by weight, as wood. The amount of water content depends on several variables, principally the location of the tree and the particular site growing conditions.

Water distribution in the tree is largest at the base and decreases toward the top. Most all butt logs, and sometimes the next log as well, are "sinkers"-they will not float in water.

Redwood gives up its moisture very slowly. Thus lumber cut from logs with high moisture content must be dried much longer than lumber from logs with lower moisture content.

Story at a Glance

The several reasons why a considerable length of production time is required for redwood; how this affects marketing practices and why it is to retailers and wholesalers' advantage to be aware of these facts.

Over the years Palco has developed three classifications for sorting green redwood lumber which are based on drying characteristics. These classifications are simply heavy moisture content, medium, and light.

The sorting of these moisture content classifications added to the usual sorts by size and grade require green chains much longer than normally used in mills producing other species. Palco's green chains total more than 1,500 feet in length and accommodates around 900 segregations.

Up To 30 Months

Palco's "Heavy" rough green redwood requires from 12-24 months of air drying, depending on thickness, before the lumber can be kiln dried. "Medium" class requires about one half the air drying time of the "Heavy." "Light" moisture content stock may go directly to the dry kilns without the preliminary air drying.

Most of the upper grades of redwood lumber, which make up over 70% of our old growth redwood come from the lower logs of a tree. Thus these upper grades require the long periods of air drying prior to kiln drying. It can readily be seen that up to 24-30 months can easily pass between the time of logging and the time the finished dried product is shipped.

The people who have visited Palco's Scotia facilities see air drying yards seemingly without end. To take care of the air drying inventories we have in excess of 50 acres of drying yards and can have more than 50 million board feet air drying at any one time.

Having gone to this much care and expense to air season and then kiln dry, Palco sees to it that after kiln drying the lumber is then always under roof, through all subsequent manufacturing, storing, and loading.

The necessity for the physical and financial capacity to carry large inventories has a beneficial effect on the marketing flexibility of redwood lumber and plywood. Palco has become used to periods of large inventorying during its lO7-year history.

The physical facilities plus an attitude of willingness to carry large inventories allows the company to ride out times of market unrest. During periods of decreased market demand we can stockpile products rather than move them in unfavorable markets. Then when demand picks up again, Palco is in an even better position to supply its customers. Thus our redwood products are not subject to the wide market gyrations sometimes experienced by other species and building materials.

Customers have come to appreciate the market stability of Palco redwood and the availability of a dependable supply.

Forecasting market demands as far ahead as we do, especially in terms of lumber sizes, can be difficult at times.

However, with 107 years of experience. we are able to do what we think is rather an exceptional job. The necessity for carrying large inventories imposed on us by the character of redwood, has an added bonus in the marketing and shipping flexibility thereby provided: this works to our benefit as well as to that of our customers.