Western Woods

By H. A. Roberts Executive Vice President Western Wood Products Association

L97 4 draws to a close, Western lumbermen face i.one of the deepest dips in lumber demand since the end of World War II. The soft market is attributable to a decline in housing starts, a construction market which normally consumes half of all Western softwood lumber.

At this writing, (late November) the first small signs of a turnaround had begun to emerge. The prime interest rate dropped from a 1974 high of l2Vo to lD%Vo and funds began to flow into savings and loan institutions once again as other investments became less at- tractive. This is bound to bring mortgage interest rates down. Continuation of this trend is necessary to stimulate home buying. The early signs also strengthen our confidence that WWPA projections for a slight increase in lumber production and consumption will take place in 1975.

Production curtailments retarded mill inventory buildups in the Fall. Retail inventories finally were sufficiently depleted so that any resurgence in homebuilding will require restocking by retail yards. While overall sales declines were experienced by producers, 1974 was not without bright spots.

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Story at a Glance

Western lumbermen face one of the deepest dips in demand since'45 . . slight increase in lumber production and consumption seen for next year 5% remodeling increase expected.