Who buys CCA treated lumber?

WHO is the rekil customer for CCA treated lumber prod-

This is a question which has never been completely answered despite the wood preserving industry being one of the most dynamic segments of the U.S. lumber industry with the use of treated lumber growing rapidly.

Story at a Glance

Few statistics presently available on pressure treated lumber buyers. Virginia Tech researchers to analyze market . . . results will help retaalers.

Figures in 1984 showed that residential remodeling accounted for nearly half of the pressure treated lumber market with 240/o used in new residential construction. Over 800/o of all treated lumber moved through retailers to the end user at that time. The end consumer was the homeowner for as much as 70% of the treated lumber sold with about 400/o of this being used by do-it-yourselfers.

Because consumer level market research is almost non-existent in the area of treated lumber retail sales, two faculty members at Virginia Tech University plan to fill the gap. Paul M. Smith, a graduate research assistant, and Steven A. Sinclair, Ph.D. and associate professor forest product marketing, Department of Forest Products. at the university plan a study titled, "An Analysis of the Retail Customer of CCA Pressure Treated Lumber, Timbers and Plywood."

This study will be based on surveys of two major retail customer segments. The researchers plan to gather data from two scientificallv selected samples composed of 300b professional contractors and remodelers and 3000 do-it-yourself homeowners located throughout the 50 states.

"Data collected will be used to better define customers in the maturing CCA pressure treated market to enable retailers to better target their promotional activities," Sinclair said. The customer's knowledge of and satisfaction with currently available CCA treated products will be determined along with opportunities for new high margin specialty products.

The most important product attributes will be developed for each group, according to Sinclair. Such attributes include product color, price versus quality, brand names, product appearance, point of purchase literature and safety issues.

A potentially huge permanent wood foundation market for CCA treated products also will be examined. Information will be available to assist managers in planning their merchandising and promotional activities as well as in the development of long range plans.

Wood Exports UP

(Please turn to page 36) place, as we are now seelng ln Japan," Fast pointed out. "The success of Summit House has Provided the opportunity for several new wood contruction projects, including a 3,000-unit townhouse development now in the Planning stages near Osaka."

Developing new demand for structural panels in the international marketplace is neither quick nor easy, according to F'ast. But with the impressive level of panel industry commitment and the excellent suPport APA is receiving from the Foreign Agricultural Service, ti.S. Department of Agriculture, he feels there is every reason to expect continued market growth worldwide.

"We believe that with a lot more hard work and commitment and a fair wind in the global economY, it will be possible to advance the international market for structural panels from the present 600 million square foot level to 5 billion feet by the year

2010, " F'ast said, "The potentialfor that kind of increase is part of an ambitious scenario that envisions the total market for the industry at well in excess of 40 billion feet within 25 years. "

New opportunities for structural panels are far from satisfied, at home and abroad. It's a healthy challenge for panel manufacturers and all involved in the supply chain throughout the world.

Mt. States Statistics

(Continued from page 70) the study was collected in January 1985. Approximately 640 questionnaires were sent to retailers in the region, according to Fred Caruso, executive vice president of the MSLBMDA. Tabulations were based on 290 responses. The results of the survey are thought to be accurate to within 7o/o100/o and probably closer in most cases with the exception of S. E. Idaho where the sample base was extremely small, according to Caruso.

Penta Contaminants Curbed

Hazardous contaminants in the wood preservative pentachlorophenol will be reduced over the next three years by a recent Environmental Protection Agency mandate.

Hexachlorodibenzo-p-dioxin (HxCDD) levels in pentachlorophenol batches will be limited to 15 parts per million in the first year. This will be cut to six parts per million in the second year with three parts per million on a monthly average. In the third year the allowable level will be four parts per million with a monthly average of two parts per million.

Hexachlorodibenzo-p-dioxin has caused cancer and birth defects in laboratory animals, according to the EPA.

Mortgages Bottoming Out?

Mortgage rates have fallen to an average of 9.080/o interest on 30 year, fixed rate plans, their lowest level in nine years, according to the Federal Home Loan Mortgage Co. Analysts disagree over whether the decline will continue.

AWPB Quality Mark

(Continued from page 13)

Unfortunately, since not all treaters participate in the AWPB quality program, if treatment is applied to improperly graded lumber, there will be no certified agency inspection to detect the error. The presence of bogus or counterfeit and mill stamped lumber presents a potential problem. Because lumber with bogus stamps usually does not conform to ALSC quality, it can create a problem if treated. Although the pressure treating may meet quality standards, lumber that does not meet ALSC grade standards can be potentially harmful since sub-standard performance may result.

"The AWPB quality mark is applied only to lumber with a legitimate ALSC grade mark or no grade mark at all. The AWPB cloverleaf certifies that treatment standards are met, but does not guarantee the lumber grade," said Charles E. Thomas Jr., ceo of the American Wood Preservers Bureau. "Thus, the retailer should specify ALSC grade marks and treated quality marks on all the pressure treated lumber which he orders."

Bay Area Reload

(Continued from page 42) our expectations in the past two years," observed Art Parker, Portland-based sales manager of the new reload facility. "The cargo reload facility allows us to be active in that market on a daily, rather than an intermittent basis, and it also allows us to be cost-competitive with lumber that's trucked in from Northern California. It's like having a sawmill in San Francisco."

The Port of Redwood City reload facility will serve the San Francisco area with a stocking inventory of 5million board feet, ranging in size from 2x3 to 2x14, with lengths from eight to 26 feet. The 2-1/2 acre facility is expected to handle about 50-million board feet annually.

Lumber for the reload is barged in from Pope & Talbot's Port Gamble, Wa., mill, the oldest continuouslyoperating mill in the Northern Hemisphere. The company projects

The Merchant Magazine that about one-third of Port Gamble's output will be sold in the San Francisco market.

"Barging lumber is far less expensive than other modes of transportation," explains Parker. "We can also control the inventory to reflect fluctuations in production and demand."

The facility makes it possible for Bay Area distributors. wholesalers and yards to get their orders filled immediately and to have Pope & Talbot assume the cost of carrying their excess inventory. It virtually eliminates long hauls to the mills and empty back-hauls.

The Port of Redwood City cargo reload facility is the only one of its kind in the San Francisco area. Pope & Talbot also operates a cargo reload facility at Port Hueneme in Oxnard, Ca., from which the company serves the Los Angeles market.

Mortgage Rates Steady

Rates on 3O-year residential mortgages are expected to continue in the 9Vz-lloh range throughout 1987, according to the Mortgage Bankers Association.

P.T. Wood Sales UP

(Coitinued from Page 14) inventory of larger sizes for dealers to call upon for readY deliverY.

The combined promotion, Public relations and marketing dollars invested by WWPI member companies have been effective in Putting pressure treated wood in the consumers' backyards. Traveling around the country I also see more treated wood in more lumber Yards than I did a few short Years ago. The industry's voluntarY Consumer Awareness Program has been a success, according to research. Dealers and consumers have received information and are aware of the proper measures to take when handling and using Pressure treated wood. This is encouraging as industrY members have and are continuing to comPlY with the implementation of this program. (See p. l6 for more details on the CAP)

As members of the Western Wood Preservers Institute, we want to work with You to keeP Your treated wood sales UP. At the same time, we are committed to doing a good job for the consumer and to supplying the market with qualitY products.

We'll continue to Promote the benefits and advantages, and sing the praises of pressure treated lumber, so that Your sales and Profits will go up and that's UP in capital letters.