Forest Products Sales Rise

North American Wholesale

Lumber Association members distributed $7,175,527,397 in forest products in 1983, an increase of over $1.7 billion in their sales of forest products in 1982.

Figures compiled from a comprehensive annual sales survey of 3zlo wholesaler members active in 1983 showed direct sales of $4,569,759,669 representing 63.lv/o of 1983 sales. This total includes sales out of reload centers, remanufacturing plants and treated wood sales. which are arbitrarily defined by NAWLA as direct shipments. Sales out of regular distribution yards stood at $2,@5,7 67,728, or 36.3s/o of sales.

In 1982, direct shipments accounted for 67.5s/o of sales, while 32.590 of sales were out of distribution yards. In addition, although sales dollars out of remanufacturing plants remained fairly constant at $276,325,554, footage through wholesaler remanufacturers increased by lls/o to 915,229,57 0 board feet.

As the dollar value of forest products distributed by NAWLA whole- salers increased in 1983, so did the daily investment in receivables and inventory. On June 20, 1984, NAWLA wholesalers were providing over $700,000,000 in accounts receivable and nearly $500,000,000 in distribution yard inventory, representing approximately $1,200,000,000 of financing to the forest products industry on a daily basis.

Investment in inventory by NAWLA wholesalers increased by nearly $100,000,000 over last year. This is attributed to the growing trend among distribution yard wholesalers towards a higher value product mix. In addition, NAWLA wholesalers who are 10090 direct mill shippers indicated that they have inventory investments totaling $23,000,000, which suggests they have reload center ownership or material at treating plants on a daily basis.

Trucking was the primary mode of transportation used by NAWLA wholesalers in 1983 to distribute forest products, accounting for 48.690 of all shipments; rail transportation, 28.4v/0, followed by piggyback, 12.6s/0. Deliveries bv truck out of re- load centers represented 6.190 of forest products shipments; water transport stood at 4.30/0.

The NAWLA 1983 Sales Survey also provided a profile of the association's wholesaler membership. As of October l, 1984, 3890 were direct mill shippers; 16.490 indicated 7590 or more of their sales were out of distribution yards; 12.990 were 5090 direct mill shippers and 5090 distribution yard shippers. A nearly equal number of NAWLA wholesalers, 16.3s/o total, said that 6090 or 75s/o of their sales were direct mill shipments. Only 7.390 said that they were l009odistribution yard shippers. In all, 2ll firms operate a total of 4M distribution yards, with average annual sales per yard of nearly $6,500,m0. NAWLA wholesaler members also operate 68 remanufacturing plants, l0 more than in 1982, and ll treating plants.

Western Lumber Stays in West

The majority of lumber produced by western mills was used in California in 1984 with Oregon, Washington, Texas and Arizona falling in behind.

A total of 3.783 billion board feet was the actual amount shipPed to California, according to the Western Wood Products Economic Services Department. Oregon received 1,579 million b.f.; Washington, 946 million b.f.; Texas, 700 million b.f. and Arizona.636 million b.f.

The western states as a region accounted for 8.42 billion board feet. The south was the next largest regional buyer with 1.54 billion b.f.

Outlook Strong For Vinyl Siding

Vinyl siding should continue its penetration of the remodeling and new construction markets in 1985 and throughout the remainder of the 1980s.

Crowth is expected in shipments of vinyl siding and accessories, provided the economy remains on an uPward trend and there is sufficient homebuyer demand to prevent a sharp decline in new housing, according to the Vinyl Siding Institute.