The United States Market For Tropical Hardwoods

by Russell C. Stadelman, President Russell Stadelman & Company Memphis, Tn.

T HE UNITED STATES imports

I of tropical hardwoods have grown enormously in the past 20 years. This growth can be expected to continue, provided certain factors do not interfere. Among these are:

(A) Excessive price increases by supplying countries, such as by SEALPA, (South East Asia Log Producers Assn.) which might be compared to that of the OPEC nations in the case of oil. Control of inflation and value of the U.S. dollar. Reduced U.S. duties on hardwood products, which will enable the United States to compete for imported hardwoods with Europe, Japan. and other importing countries.

(D) Increased log export restrictions by supplying countries to adversely affect the large hardwood production in Korea and Taiwan which presently are major suppliers ro the United Statesl and growth of the processing of finished products in the log supplying countries to compensate for any loss of production in Korea and Taiwan.

(E) Quality improvement and further diversification of hardwood products in supplying countries, which will open up new markets in the United States.

(F) Improved communication and cooperation with the exporting countries as well as with other importing countries. The Imported Hardwood Products Association (USA) has recently proposed a new expanded international organization, which is made up of representatives offorest based associations in exporting and importing countries, to work together on various common problems.

The U.S. economy overall is expected to strengthen at a modest rate in 1979, with real growth at a rate of 30/o to 3t/20/0. Yarious estimates are that the U.S. inflation rate should moderate in the last half of 1979, ending up between 606 and 6rl:01r. This should allow continued growth in the U.S. needs fbr tropical hardwoods. However, energy changes and worldwide economic conditions will naturallv affect the growth rate.

Story at a Glance

Gontinued growth expec- ted in U.S. market for im- ported hardwood...Southeast Asia will remain the leading supplier, with South America increasing its share.

U.S. imports of hardwood furniture and furniture parts in 1976 and 1977 were as shown below: (Value in $000) display. In summary, furniture suites on display consisted of: By No. of Woods Suites Percent Solid &

Preliminary figures for 1978 show imports of furniture and furniture parts at about the same level and with Taiwan again the No. I supplier. A survey by the Fine Hardwoods-American Walnut Association in 1978 at the Southern Furniture Show of furniture suites on display revealed that prints and plastics made up 20olt * of those on

*Other woods include: avodire, acacia, bamboo, cane, Mozambique, poplar, alder, ramin, teak, y€w, chestnut, gum, pau ferro, satinwood, rosewood, mappa, burl, and others not listed separately. Furniture manufacturers are interested in new species, provided they can be assured of a regular supply. The outlook for tropical hardwoods is bright in the furniture industry since young American families, major buyers of new furniture, prefer natural wood instead of manmade plastic in furniture.

Hardwood plywood imports have grown at a flantastic rate in the past 18 years as shown below:

Hardwood Plywood Imports t971

(*)

During the first 9 months of

(Please turn to page 76)