fOf hafdwOods in the fUtUre Robert s.ossood,lnc.

ATE in October. the ImL.l ported Hardwood Products Assn. in conjunction with the World Trade Committee of the Los Angeles Area Chamber of Commerce, held a seminar for a group of Latin American governmental forestry officials and private businessmen. Almost every country in Latin America was represented and several things came out of the meeting that are of great potential interest to the American hardwood-consuming industry.

The fact that the United States' supply of hardwood is dwindling yearly is indisputable. The supply of hardwoods for the American furniture, molding, plywood and other industries has to come in increasing quantities from outside North America.

This has become sort of a truism but the impact is increasingly evident. It actually helps the return to some traditional woods like Honduras Mahogany which have been used for centuries but have been in much smaller demand in the Past few decades.

Since the early 30s most of the imported hardwoods have come from South East Asia and while supply is still generous it is only a question of time when worldwide demand for hardwood will dePlete this source. Also it must be remembered that South East Asia

Story at a Glance

The increasing demand worldwide for hardwoods will result in a tremendous increase in the U.S. use of Latin American hardwoods . Problems include unfamiliar sPecies, shabby business practices and lowering freight rates.

naturally looks to other areas such as Japan, the Middle East and Europe for marketing purposes and North America is geographically a long way away.

This country has a long history of working with African hardwood supply but it has never become a major source for the United States.

Latin America has always been regarded as a potentially much larger source of supply and with enormous increases in production and easier shipping for a relatively short distance there seems no way to stop the tide in the future.

There are, however, two basic problems. First, while shipping to the East and Gulf Coasts has become easy and economic, shiPments to the West are generallY stopped by the prohibitive freight rates now in force. It seems obvious that this will have to be changed.

Another difficulty is in the fact that so many species that basically are quite usable in this countrY have never been heard of. It will take a concerted joint effort (the feeling at the seminar was that this should be an inter-governmental project) to establish a Promotional program to introduce the woods to the United States. This will be an expensive but necessary undertaking.

Fortunately most of the Latin American countries are able to work within the grading rules now in effect in the U.S. - NHLA for lumber, IHPA for plywood and veneer. etc.

Another vital aspect of the Picture is the need for increased buyer confidence in this country. While much dependable and continuing business is being done between this country and Latin America there are unfortunately many Places where business has been poorly conducted, if not plain unethically. This will happen over the years to come almost automatically but in general there is much room for improvement.

On an overall level there seems little doubt that the next decade or so will see a tremendous increase in Latin American hardwood supply. The trees are good and plentiful and the distances involved would save a lot of fuel compared to the Far East!

Food for thought? - It seems to be.

Jannow

Rhinohide

Fana

Sweitzen

Colon-coded

Visadon

(Continued from page sg) family type units have continued to be pace-setters on the construction scene. And in their design, trends toward environmental harmony have created a solid demand for natural wood products, including red cedar shingles and handsplit shakes.

In conclusion, single-family housing construction, which remains the major market of the cedar shingle and shake industry, though expected to improve, will Iikely remain somewhat constrain- ed through much of 1975. The long range outlook however, appearc optimistic.

We expect that there will be a gradual though undramatic construction industry improvement throughout the first three quarters of 1975 resulting in a good new home market by the fourth quarter of 1975.

Until then, we at the Bureau see the remodeling, re-roofing and multi-family markets as excellent buffers to the present reduced level of new home construction.

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