On Plywood

A MERICAN Lr Plvwoorl

Assn. estimates for 1973 indicate a slight downturn in softwood plywood production from the record year just ending. It is now clear that at least 18.4 billion sq. It. will be utilized during calendar year t972.

The expected downturn in plywood demand next year is a direct result of an expected I4/o reduction in the number of housing starts for 1973. During this past record-breaking year we experienced a housing boom of some 2.25 million starts; 1973 estimates indicate a reduced level of 1.9 million. Although over 50/o oI plywood production goes into residential construction. we antic.

By Bronson f. lewis executive vice president American Plywood Assn

ipate only a i3/o decline in mill sales due to incleased demand in other markets and a need at the wholesale level to build up depleted inventory levels.

Historically, as the new housing market enters a declining period or one of stabilization, the remodelinghome improvement market increases. APA estimates indicate, for example, that of the 68 million existing homes in the United States today, some 12 million are said to be in need of major renovation. The re. mainder require constant maintenance and repair. Many homes built only l5 years ago are now considered to be inadequate by their owners in terms of space utilization and modern conveniences and are prime targets for substantial remodeling investments.

We expecto therefore, that a strengthening; of the home improve-