threaten economic recovery Rising lumber prices

ln 1992 consumers paid $5.9 billion Imore for lumber and plywood tban in 1990. At an average of 15,000 board feet per house, the 1992 home buyer paid $1,200 more, just for the lumber.

"This year promises to be more of the same, but worse," said Gary W. Donnelly, executive vice president of the National Lumber and Building Material Dealers Association.

Lumber prices at the sawmill are 4O7o bigher than they were for the same period last year. '"The shrinking inventory of logs at the sawmills and a growing decline in the land available for timber harvesting may soon tum the first time home buyer into an Endangered Species," Donnelly said. "Our members tell us of cases where home building projects have been delayed or canceled because of higher lumber pnces."

Environmental set asides and new forest practices that prevent the use of traditional harvest methods are responsible. A Pacific Northwest judge slapped an injunction on 13 national forests inhabited by the northern spotted owl in Oregon, Washington and Northern California. The Forest Service was prepared to offer 1.6 bil-

Story at a Glance

No end in sight for rising lumber prices? supply stifled by Endangered Species Act, dearth of timber sales ... results: record price tags, lack of affordable homes, strangled economy.

lion board feet of timber for sale but can't because of the injunction (at 15,000 board feet per house this represents about 106,000 homes).

At Chemco, we believe in the natural strength and beauty of America. That's why we produce Sunwood"o Brand pressure treated lumber. The -color bf the West is built into Sdnwood, sivins it the warm look of redwood and cedar. And Sunwood has a-benefit mother nature can't provide - a lifetime warranty against fungaldecay and termite attack!

Chemco offers quality products you can trust, and like the mountains of the great N6rthwest, wi:'ll always be here making America a little mlore beautiful, NAIURALLY!

Another 400 million board feet in 118 Forest Service contracts already awarded cannot be barvested because of concerns over the marbled murrelet. In September 1986 more than 10 billion board feet were under contract in this area. The equivalent amount in 1992 was 3 billion board feet. These are a few examples of how a poorly written Endangered Species Act is being used to halt timber harvesting and drive up prices consumers pay for wood products, Donnelly emphasized.

"The big flaw in the Endangered Species Act," he said, "is that it does not consider the economic or social on page 3O)

It's Privacy Plus, Redwood Empire's pre-built redwood fencing.

This stylish fence is loaded with no-fuss features. The solid, pre-built design saves time and money. Qrality materials are used throughout, from the tongue and groove redwood fenceboards to the industrial strength fasteners. The top lattice panel provides an extra degree of privacy. And everyone knows redwood keeps its good looks for years and years.

So, for fence without fuss - it's Privacy Plus.

Redwood Qrality

Redwood looks better and lasts longer than other woods

Redwood resists splitting, checking, cupping and warping

Redwood heartwood is naturally durable and insect resistant

Redwood takes and holds finishes better than other woods

Easy installation

. Save time, money and labor with pre-built fence panels

Concise, clear instructions included for do-it-yourselfers

Panels attach easily to posts through three pre-drilled holes

Pre-built SequoiaFence a Features

.Tongue & groove fence boards and dadoed rails make a solid fit

Sturdy rabbeted 2x5 kick board provides long-lasting stability

Top-qualiry, corrosion-resistant fasteners used throughout

Privacy Plus Design

Most popular design in California Stylish lattice top looks good while increasing privacy

.A "good neighbor" fence, Privacy Plus looks great from both sides

Costs no more than comparable nail-up fencing

Applications for Privacy Plus fencing

Makes an excellent boundary fence or property line fencing

Ideal as a privacy screen for pools, spas and hot tubs

Screens trash cans, air conditioners or other utilities

Barrier for pools or other so-called "attractive nuisances"

Wholesale Distributors of Re du oo d, Cedar, Pine, Douglas Fia Roofng and Specialtl Softuood Produas.

10 Madrone Avenue

P.O. Box 1300

Morgan Hill, CA 95038

(408) 224-9004

(408) 800-s509

Lorry Sequeiro

FN(209-9E2.15$3

HUNIINGION

Peiler Svenkerud

GregWood

Joe McGuire

(8m) 488-668r (7t4) 842-6681

FN( 7t1-817-7329

Runawaylumber prices

(human) impact of decisions made in its name. Our members have said for years that it would take a crisis for people, both private citizens and elected officials, to listen to concerns over the inequities of the Act. Now that consumers are directly affected by higher prices for all wood products, they are starting to pay attention."

"Unfortunately, some consumers see the lumber dealer as the bad guy because it is at the lumber yard that they are introduced to higherprices. I tell our members to tell their customers to call their Congressman. They wrote the Act and they are the only ones who can change it to correct the problem," Donnelly noted.

Realizing its direct impact on them and their customers, home builders have finally joined the fight. The National Association of Home Builders recently instituted an "Ax High Lumber Prices Campaign," handing out bright orange stickers bearing the slogan to attendees of their recent convention.

"We've printed up a lot of flyers, buttons and other materials to encoufage builders to call their Congressman to ask them to address the sources of the rising lumber prices," explained NAHB's Cynthia Adcock. "Namely, the Endangered Species Act must be rewritten to give an eye towards the economy. And there's too much red tape in the laws that govern timber sales. But most importantly, we're asking President Clinton to hold a forest summit in the Pacific Northwest."

Time is of the essence since, says the American Plywood Association, the slowly recovering economy could be the next endangered species. "Low interest rates and growing consumer confidence suggest this spring's housing starts should rise dramatically, thus fueling other segments of the economy," APA chainnan Dennis A. Spencer wrote in a letter to hesident Clinton. "The reility, however, is that we are at risk of sinking back into recession because artificial and misguided constraints on the availability of timber resources have sent wood product prices skyrocketing. That, in turn, threatens to suffocate what otherwise would be strong housing demand."

He noted the U.S. Forest Service timber sales in Washington and Oregon last year totaled just 385 million board ft., down from an annual average of 3.3 billion ft. during the previous ftve years and an average of more than 4 billion ft. per year from 1982-1986. Nationwide, he said, 1992 Forest Service sales totaled only 52Vo of the congressional goal of 8.6 billion feet.

APA forecasts demand for U.S. structural wood panels to inqease 4Vo this year and 3.57o next year, reaching a record high 29.5 billion square ft. (3/8" basis) in 1994. That demand, coupled with rising timber scarcity, has propelled wood products pric€s to record highs.

"These conditions provide a classic example of free market mechanisms at work," Spencer wrote. "The present record high prices of wood products are a direct result of timber harvest restrictions at a time of growing demand for those products."

The situation, he said, is "not only intolerable for timber dependent communities, where mill closures, job losses and social problems continue to mount. It is now also a clear obstacle to national economic recovery."

The single most importar,it reason we can give you for adding a SpaceRak rack-sup. ported storage building to your yard operation is this: it will sub'stantiallv increase your lumber sales and produce a lot more profit for your business. Two goals we're sure you aspire to with great enthusiasml And here are some additional advantages, which, considered in total, reinforce the integrity of that opening statement.