WWPA. Expect good times

rnHE BUZZ in the lobby of the Westin St. Francis Hotel

I. sounded the return of better times as the Western Wood Products Association held its spring meeting.

Convening back in San Francisco, Ca. (where they'll meet in '98), after a Palm Springs session in '96, the lumber manufacturers sense a good year ahead, despite slightly slower markets. The scores of wholesalers who thronged the lobby networking with the mills also voiced confidence for '97, barring a major interest rate hike.

Robert H. Hunt, WWPA president, told more than 600 lumber industry professionals that U.S. lumber consumption in 1996 was the second highest on record. The 50.53 billion b.f. of lumber used in the country was just slightly below the all-time record of 50.56 billion b.f. set in 1987.

He disputed the claims by builder and dealer associations that a U.S./Canadian lumber trade agreement is the

}YWPA MEMBER COMPANIES:

Bennett Lumber Prcducts, Inc.

Boie Cascade Corporation

Caryon Lumber Company Inc.

Crode f'lountain Rsources, Inc.

Collins Pine Company

Commencement Bay lYill Company

DR. Johnsn Lumber Company

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Estrada Lumber Company

Evergreen Forest Products, Inc.

Fort Hill Lumber Company

Fremont Samill Company

Georgia-Pacrfic Corporation

Georgia-Pa.cifi c \A/est, Inc.

Guy Bennett Lumber Comparry ldaho Forest Industris, Inc,

Layman Lumber Company, Inc.

Longview Fibre Company

Leavenworth M,bod Products lYalheur Lumber Company lYescalerc Forst Prcducts

Ochoco Lumber Compary

Olympic Forest Prcducts

Omak \Abod Prcducts, Inc.

Pleasant Loggng & lYrll, Inc,

Pope & Talbot, Inc.

P*l:trh 1^nrnnr*inn

Reed l'4ill & Lumber Company, Inc.

Riley Creek Lumber Company

RSG Fomt Prcducts, Inc.

Sherer Lumber Products, Inc,

Simprn Timber Company

Spalding And Son, Inc,

Springdale Lumber Company Inc,

Stimrn Lumber Company

Tillamook Lumber Company

Truma* Industries, Inc.

Vaagen Bros. Lumber Inc,

Wam Spnngs Forest Products lndustnes

Wllamette Industries, Inc.

Wllamina Lumber Compary

Zosel Lumbe€ompany

TYESTERII W|||!II PROIIUGTS ASS(ICIATIlll|

Fu: (503)22,13934 email: info@wwpa.org hnp://w.wpa.org sole reason behind lumber price increases.

"Canadian lumber imports hit an all-time high in 1996, shipping nearly l8 billion b.f. Of that total, only a very small volume of that lumber carried the duties set by the trade agreement. So, at best, the agreement had a minor impact on prices," Hunt explained. "What builders and others seem to forget is that the last time lumber demand was this high, Western mills were producing more than 24 billion b.f. of lumber. With the restrictions on federal timber and the corresponding loss of mills during the 1990s, the western lumber industry now can produce just 17 billion b.f.-307o less."

He added that lumber prices have failed to keep up with inflation in the past l0 years, unlike home building and construction products.

Hunt said housing starts are expected to total 1.39 million in 1997, down 5.87o. Lower starts, combined with slower activity in other markets, should bring consumption to 48.86 billion b.f., down 3.37o.

Lumber used in new residential construction should total 18.6 billion b.f. this year,5.6Vo lower. Repairand remodeling will be down 4Vo to 14.76 billion b.f. These two markets comprise more than two-thirds of the lumber used annually in the U.S.

Lumber production in the West is expected to decline l.5Vo to 16.59 billion b.f. Mills in the South should see production fall to 15 billion b.f., a drop of l.6%o. lmports from Canada will be 7.5Vo lower, while overall imports are expected to be down 6.7Vo. Canada represents more than 97Vo of total imports, Hunt said.

Other highlights from WWPA's forecast:

. Lumber imports, which have declined each year since 1989, were 3.2Vo lower in 1996 to 1.925 billion b.f. In 1997, lumber exports are expected to decrease 9.7V0 to 1.74 billion b.f.

. With stronger domestic markets, log exports were down 6Vo to 2.06 billion b.f. (Scribner scale) in 1996. As U.S. markets ease in 1997, log exports are expected to rise slightly to 2.075 billion b.f. (Scribner scale).

The meeting was held March 11t4.

Storyat a Glance

Mill group forecasts good year despite housing starts ott 5.8Yo, consumption down 3.3% ...'98 convention will again be in San Francisco.

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We ve builtour businesses by helping the independent lumber & building materia dealer compete and win agarnst the big box retailers Thats why you won t find some of the best brand names at the boxes lf you re not already carrying one of the brands shown above r:ail nne of vnrr.'radprs tO ea.n about all of our buSiness bui ding programs We I show you how easy it is to stock and sell a brand name that really means someth ng to you And one that urill edd in iinr r hnttnm lino

Hot Wood Roof Legislation

Two California assemblymen are offering legislation to subsidize homeowners in replacing old wooden roofs with synthetic materials or chemically treated, fire retardant cedar.

After the City of Los Angeles banned wood roofs some years ago, other fire-conscious California communities have tried to follow suit. But Howard Kaloogian (R-Carlsbad) and Bill Morrow (R-Orange County) prefer helping people replace their roofs to outlawing the roofs.

Their proposals include a modest tax deduction, a healthy tax credit, or a program for low interest loans.

Headwaters Forest Update

( Continued from page 3 6 )

Lumber Company is in the forefront of forestry techniques so that we can manage our remaining forest properties. We have produced quality wood products for 128 years, and we are planning for the next 128 years. We are not a "cut and run" company. Our efforts include the development of a Habitat Conservation Plan to assure that all wildlife on our entire 200,000 acres will have sufficient food and cover. We have developed a Sustained Yield Plan that monitors the growth of our forests in 10 year increments over 120 years and allows us to manufacture quality lumber products at a sustainable rate. Our second growth forests consist of full size trees reaching 130 feet or more. We are not converting our forests to small tree, corn row "fiber farms" for only chip or pulp production. We plan to remain in the saw-log and lumber business.

In summary, it is important that you support the agreement to save the real Headwaters Forest. We want you to know that our redwood and Douglas fir products will always be available. It is the result of our concem for the forests and for our own long-term survival as a viable supplier of renewable building materials. This letter can only scratch the surface of these complex issues, but you can obtain more information on our Web site at www.PALCO.com. We would like to answer any additional questions you might have, so feel free to e-mail us or send us a letter. Thank you for your time and concern.

John A. Campbell President & Chief Executive Officer The Pacific Lumber Company P.O. Box 37

Scotia. Ca. 95565