Panel demahd, II pflGes lncrease through 1997

U.S. Panel Demand

the companies to expand their product lines in order to fDlly utilize new distribution capacity, he adds.

Waferboard/oriented smnd board, medium density fiberboard and gypsum board have the best growth prospects in his opinion. Gypsun board, with price and ease-of-use advantages, will be able to take full advantage of improvement in construction activity. Taking advantage of high plywood prices and improved quality perception, OSB will penetrate traditional structural plywood applications. Mediun density fiberboard will continue to replace other panels in the furniture and industrial use markets, Primarily because of is superior surface quality and workability. Insulation board will lose market share to plastic based foam insulation products.

Panel products face severe competition not only within the category, but with other products such as metal and vinyl siding, brick, and Plastic panels. Weiss expects vinyl siding and millwork and plastic foam panels to continue to capture market share. Gypsum will continue to dominate the wallboard market, he maincains, due to its low price and ease of installation. Weiss foresees reconstituted wood products, specifically oriented stmnd board (OSB), continuing to displace softwood plywood as a result of high plywood prices and the superior wood panels.

He expects most of the construction market demand to be for softwood plywood, OSB and gypsum board. Residential construction improvement will spur growth, but demand for structural panels by the material handling and pallet industry also will be a source of growth.

Although there are hundreds of panel producers, a handful ofvertically integrated forest product companies and large gypsum board companies dominate the industry, Weiss points out. He says the indusry is entering a period of increasing competition as regional producers expand distribution networks into each other's aleas in an attempt to utilize capacity. These expanded networks are causing

Steady increases in average panel prices are mostly due to increasing softwood and hardwood plywood prices, Weiss notes. Gypsum board prices declined 8Vo per year between 1987 and 1992 while hardboard prices remained relatively stable.

See relaled story paSe 36- Editor.

Story at a Glance

Panel

AT THE SH0W: (1) Doyle Norman, Dave Balzhser, Bruce Merino. (2) Bill Sovey, Randy Lanimore, Roberl Strickland. (3) David Cutler, Jim Frodsham (4) E. Z. Hunt, Larry Christopher. (5) Steve & Linda Kav Dean, Rov Deering. (5) Gieg Haupt, John Georgelis. (7j Jan Lampe, Trov Mason, Harry Demorest, Pete Peiersen,'Bob Milne. ('e) Suzanne Pacitti, Gary Converse. (9) Ken McClelland, Eric Canton. (10) Preston Boyd, David Dellwo. (11) Kevin Lelbetter, Brenda Witte, Earl Hankamer. (12) Alec Beck, Dick Lundgren, Kermit Tucker. (1 3) Kevin McNeelv. Paul Hylbert, Ken Fishbein. (14) Stew Milone, Mary Ann Peter, Joe Flemming. (15) Bill Fam'iglieni, Sam Wing, Mike Quidhamrir, Al Bennett. (16) Rick Montoya, Carl Dobbins, Dennis Wahers. (17) Chuck Lamping. (18) Richard Larson, Lisa Munay, Mike Yacks. (19) Richard Chapman, Scott Hausman, Bill Megahan, Doug Kinat, Joe Way. (20) Frazier Hewlett, Mike Dunkes, Mike Kidd, Bill Clark. (21) Aaron Babcock, George Bailinger.