Why plywood prices are up

/lN eNnlYSlS of causes for rising ll plywood prices by the American Plywood Association places primary responsibility on policies of the federal government that have created an unnecessary shortage of timber during a period of unprecedented demand for wood products.

The 12-p. APA study, "In Perspective, An Analysis of Plywood and Other Housing Cost Factors, 1970 77," was prepared in response to mounting national concern over increasing costs for all components of a new home."

According to the U.S. Department

Story at a Glance

National Forests contain more than half the U.S. sawtimber inventory, furnish less than one-fourth of the timber harvested. of Commerce, the average cost of a new home nationwide during the second quarter of 1977 was $54,700 - an increase of $6,900 from one year earlier and a 54% increase since 1973.

During that l2-month period, the cost of plywood has added about $150 to the $6,900 increase in the price of a new home.

The study points out that cost increases have occurred in all phases of plywood production. Since the beginning of the decade, for example, power and fuel costs have skyrocketed ( Please turn to page I 5 1