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Gan d-i-y keep the panel industry on a roll?

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f\ AN the U.S. structural Panel V industrv continue to achieve record production and still find the customers to utilize the growing output of plywood and other structural panels?

The industry achieved record production for the fourth consecutive year in 1986 with a combined output of plywood and other structural panels in the region of 25.4 billion sq. ft., 3/8 inch basis, an I l% increase over 1985. Each of the major production classes reached new records with plywood at a high of over 22 billion sq. ft. and nonveneer (waferboard and oriented strand board) panels peaking in excess of 3 billion ft.

Story at a Glance

Repair & remodeling expected to be panel industry's hottest market. new program urges adding a room to the top of an existing home moredealeri distributor selling aids planned.

Considering this, can the industry expect new records in the future? Yes is the opinion of American Plywood Association president William T. Robison, who adds an important rider to his optimistic view.

"Our structural panel industry will continue to expand and diversify in the next quarter century," he said, "provided it can maintain and increase its promotional clout in a reasonable economic climate, and provided it can be assured ofa stable supply from America's abundant renewable timber resource."

The market area where the panel industry expects to achieve its most spectacular advances is right in its own back yard the over-the- counter distribution sector, including home repair/remodeling and doit-yourself.

The over-the-counter market represents 6 billion square feet of demand currently. The association believes that with the help of dealers and distributors it can yield another 6 billion feet by 2010.

Remodeling presents the greatest opportunity, spurred by America's ever-increasing inventory of older homes. Room additions, re-siding and garage and attic conversions are primary promotional targets.

APA is planning a sharper remodeling promotion focus that will include adding a room on top of an existing home - adding up as well as adding on. The benefit for panel manufacturers and the distribution trade alike is that panels can be provided for floors, walls and roofs, at significantly larger volume than a horizontal home extension on a concrete slab.

The real key to unlocking vast new opportunities in the over-thecounter market, however, will be found most of all in the support the panel industry provides to dealers and distributors.

The basic components of this effort are APA's ongoing field services division seminar program, which trains approximately 4,000 dealer/distributor personnel annually, and the growing inventory of literature and other merchandising aids expressly developed for dealers.

"We greatly value the support and cooperation we receive from building materials dealers and their staffs," said Robison. "The continued close cooperation of the distribution network will be fundamental as we plan our further market expansion. Our services are aimed at helping the dealer move more structural panels through product knowledge, end-use knowledge and pullthrough demand."

Canadian Export Taxes Hit

Claiming Canada hasn't acted on the lumber import agreement made with the U.S. five months ago , lumber producers have rejected Canadian proposals to modify the agreement before its Parliament passes enabling legislation to impose a 15 % export tax .

"Canada's failure to pass enabling legislation has caused a breach of the agreement it signed just five months ago," said Stanley Dennison , chairman of the U.S. Coalition for Fair Lumber Imports. "Before any further discussions take place, Canada should simply do what it said it was going to do "

The coalition has passed a resolution emphasizing the need for Canada to meet its obligations under the agreement. The resolution asks the U.S. government to "do everything possible to insure that Canada promptly lives up to its obligations " that it would be wond e rful if everything was under the same roof," said partner Sandy Leigh.

"By failing to pass the necessary enabling legislation," the resolution charges, "Canada has not collected the tax Instead, it has sought and obtained voluntary contributions of substantial but diminishing amounts. Collections are less than they would have been had the Canadian legislature acted."

The resolution notes that the number of Canadian companies filing lumber tax returns in February declined by more than 15 % from January. Canada has provided no explanation for the drop in firms filing or the low collection level.

Leasing of shops officially began May 1, with construction to start late in the summer.

Nonresidential Wood Use Up

Nonresidential construction is using more and more wood products reports a study coordinated for the Wood Products Promotion Council by Robert G. Anderson, director of market research and economic services for the American Plywood Association .

" The primary goal of this effort is to aid industry in establishing wood market penetration levels by type of building activity and region as a measure of promotional effectiveness," Anderson said. "It also provides an indicator of market opportunity."

Dealers can use the information in "Wood Used In Nonresidential Construction " to develop new markets and customers. The report is available from AP A for $25

Builders' Ma ll in Sa crame nto

A new concept expected to challenge the two HomeClub and nine Lumberjack Building Materials retail warehouses in the Sacramento , Ca . , area, a $12 million, 82,000 sq. ft building materials mall, is planned for a spring 1988 opening.

Showcase Square will feature two levels of retail shops averaging 1,000 sq. ft. each, surrounding a 6,000 sq ft. court, equipped for product shows , demonstrations and entertainment events. Also planned are conference facilities and The Showcase of Homes, an information center on the local housing market.

The idea for the mall is credited to partner John Ulyatt, who noticed "people r \!n all over town to match things up. He to the conclusion

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