"Cautious optimism" for redwood industry

By PHlttlP T. FARNSWORIH Executive Vice Preside,nt Colifornio Redwood Assn.

FTER almost four years of consistently dreary housing forecasts, the healthy single-unit construction predictions for 1971 contained in a recent report issued by Merrill Lynch, Pierce, Fenner & Smith is welcome rclief.

This report predicts a pJradual rise in housing starts beginning in this, the last quarter of 1970. Hous. ing starts are forecast at a rate of l.5l million in the first quarter of I97Ithe highest quarterly rate in l8 months. After the first ouarter. the reporL staLes. slarls are expecterl to continue increasing rapidly, reaching a rate of L92 million units by the fourth quarterthe highest quarterly level since 1950.

While this is particularly good news to the western building industry, including manufacturers, dealers, and contractors, it is important that we recognize and continue to promote the secondary markets that have sustained us durins this seemingly interminable houiing slump. The secondary markets that kept redwood's sales relatively stable didn't just happen. They were care- fully promoted and expanded. By broadening its market base in such

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Continued promotion of secondary markets for redwood has taken a lot of the bite out of the housing slump . housing market should pick up next year.

diversified areas as garden, industrial, commercial, and multi-unit construction, redwood has proven its versatility and ability to adapt to the changing nceds of the economy and the society which supports it.

Now that indications point toward a housing upswing, and there is ample evidence that housing starts are already increasing in numher, it would be most short sighted of us to begin to ignore these valuable secondary markets. On the contrary, we, as an industry, should strivc to maintain and even further expand these markets, resisting the tendency to return to the comfort and complacency o{ the pre-crisis housing market.

The California Redwood Association has been developing several noteworthy promotions designed to further broaden redwood's sales and applications base. It is of significance that several of these markets are non-consumer in nature. That is, they are dependent on public financing, and there{ore are not subject to many of the pressures affecting consumer markets.

An additional advantage of secondary market promotion to the redwood industry is that these markets lend thcmsclvcs to thc use of the common grades of redwood.

Based on the philosophy of finding new uses for old products, a l97l commons promotion will show customers and builders alike how considerable savings may be realized. and redwood still used.

And so we, as an industry, enter l97L with cautious optimism. The past years have taught us all a sreat deal, lll LA.,