G0ilvAGr IUMBEm Go"

The strength of the U.S. dollar and continued high interest rates may hold lumber exports in check during 1985' he said. Exports in 1984 are expected to reach 1.6 billion board feet. In 1985, lumber exports are forecast to grow only 390 to 1.65 billion board feet.

Roberts said the western lumber industry has seen a shakeout in the number of sawmills since 1978. Over the past six years, the number of mills has fallen from 818 to 669, a loss of 149 mills in the West.

However, that decline has not meant a like droP in Production. In ln9. ir took 4.5 men to Produce I million board feet of lumber a year. Today, it onlY takes 3'43 men to Produce the same amount, a 3l9o increase in productivitY.

"The 660 mills we have left in the West now have the caPacitY to make more lumber than the 818 mills we had beginning in 1979. UnfortunatelY, we cannot Put a handle on our caPacitY until we are tested.

"That time will come onlY when a sizeable increase in demand brings about full production, a futher loss of mills. or a combination thereof," Roberts said.

Highlights from the board of directors and committee meetings included executive board recommendation that the grading service rate be reduced to 250 per MBF, effective Oct. l, 1984' with a corresponding reduction in rates being charged members. TheY also reaffirmed implementation of a dues increase of l0o Per MBF, also effective Oct. l. The net result of the two changes will be a 50 increase.

The economic services committee discussed reports that southern and eastern U.S. softwood Production and consumPtion volumes have been drastically understated due to Bureau of Census underestimates and noted that correction of lumber production statistics in the U.S. will result in changes in the Percent of Canadian share of total U'S. consumption and changes in forest management planning as related to the suPPlY and demand outlook.

The export committee aPProved a joint NFPA/WWPA PeoPle's RePubiic of China trade mission in late April or early May, 1985. The marketing services committee approved the Impetus Marketing program and budget needs of $2,841,m0 for the second year of the five Year Program.