Structural Wood Panel Production Increase

Structural wood panel production in the United States and Canada will reach a record 32.2billion sq. ft. (3/8inch basis) this year, some 700 million ft. more than in 1993, forecasts the American Plywood Association.

But the improving outlook is accompanied by "difficult prospects for segments of the indusry increasingly affected by misguided national forest and private land management policies," APA president David L. Rogoway emphasized.

The forecast is based on gradual improvement of U.S. and Canadian economies, particularly residential construction, increasing demand, he pointed out, adding APA forecasts 1.315 million U.S. housing srarts rhis year, up from 1993's 1.267.

Already restrained by timber harvest consEain[s, westetrn sanded plywood production will continue to drop as industrial narket specifiers discouraged by a lack of familiar western grades and species switch to nonwood substitutes.

Western plywood production de- clined from 9.1 billion sq. ft in 1988 to about 4.1 billion ft. in 1993 and will drop to 3.2 billion ft. this year, according to APA. Nearly half of the lost western production is in sanded grades with other producing regions unable to make up the diffaence.

Total U.S. plywood production is expected to drop 600 million sq. ft. this year while oriented srand board production rises 850 million ft. OSB now constiurtes roughly 307o of U.S. structural wood panel production. Nearly all of the 4 billion sq. ft. of new industry capacity expected over the next five years in the U.S. and Canada will be for OSB, according to APA marketresearch.

Rogoway noted that with increasing demand and new mill capacity not expected to come on line until 1995, marketplace volatility is likely to be exacerbated this year.

Encouraged by resource constraints, engineered wood production, which makes more efficient use of fiber supply, is expected to grow with U.S. glulam production rising atnost l%o rhis year. Combined U.S. and Canadian production of wood I-joists and laninated veneer lumber is foneczrst to increase l0Vo and l6Vo respectively. 'We think engineered wood products constitute a defining tend in the wood products industry of the 90s and beyond," Rogoway concluded.

Logging Plan Cuts Harvest

Calling for an annual timber harvest of 1.1 billion board feet over the next 10 years, the Clinton administration submitted its latest logging plan version Feb. 25.

citing new evidence of spotted owl declines, the plan lowers logging estimates from 1.2 billion board feet. The new level is about a fifth of the harvest level during the 1970s and 1980s.

The new plan will cut about 9,500 logging and related jobs. The 1993 draft estimated a job loss of about 5,500.

Industry opinion is that additional changes will be made before the final submission in late March. The revised plan was based on new studies showing an increased logging impact on the spotted owl.

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