Business Forecost.. l97l

WENDETT BARNES Executive vice presidenf Weslern Wood Products Assn.

500 adults by R. H. Bruskin Associ. ates, New Brunswick, N.J., indicates that home improvement is the first preference of respondents, both male and femaleo for spending discretionary income. The survey placed the total home modernization market at $I7 billion annually.

ttThere is a change," Barnes said, "inthe makeup of housing units which we like. [n 1969, multifamily starts accounted for 45.9 percent of total housing starts. The forecasl which I gave in March anticipated that multi-family starts would increase to 50 percent of total starts. But later data now makes it appear that instead of an increase- in multi-family starts, there will instead be a decline of approximately one percent. A further decline of one percent, to 44 percent of total con. ventional housing starts, i s pro. jected for 1971."

This increase in housing starts in 1971, said the trade association executive, combined with an anticipated change in percentage of the multi-single family mixo means increased lumber consumption.

"I expect that lumber used in residential construction will in. crease from an estimated 12,7 billion bf. in 1970 to 14.2 billion bf. in 1971," Barnes said. ttl expect that some I billion bf. of the boost will come from the West. We expect coast and inland production in the Vest in 1971 to rise nearly four percent and inventories to decline nine percent from 1970 year-end levels."

In summary, Barnes saiil the sec. ond half of 1970 will be somewhat brighter and 1971 will be considerably brighter than the early 1970 outlook for the western lumber in. dustry.