Signs pointto healthier outlook

I NCREASING

I consumer demands for economical housing, together with more sufficient mortgage money, foretell a healthier outlook for the forest products industries in 1976.

After a twoyear decline through 1974 and '75, we're looking forward to a cautious but steady upward trend in lumber production and sales.

For the first time in our history, the construction industry is not lead' ing the way to economic recovery.

Economists suggest that only 15% of America's households can afford to buy the typical single-family home presently offered on the market. So, the home-building industry is moving toward a product that will be within the reach of more consumers. The result will be a smaller, more practical house, with lower maintenance costs and fewer built-in frills.

Along with this basic housing trend, 1976 will bring increased mortgage money. In spite of inevitable rising interest rates, we can still predict housing starts in the neighborhood of 1.6 million.

Story at a Glance

Cautious but steady financial atmosphere should result in a more solid, financially stable growth pattern in the coming year ... 1.6 million housing starts ... increased mortgage money in '76.

The dealer salesman is the final link in the sales chain from plywood mill to end user. He is fundamentally im' portant to the plywood industry.

Our 1976 program gives new emphasis to building the yard salesman's plywood knowledge and background.

We'll also help dealers increase their share of the remodeling market with improved displays and product information.

We'll seek to build sales through increased consumer awareness of siding. A new four-color brochure will be produced on siding and textured paneling. Fresh concepts are on the drawing board for in-store displays of textured panels.

In all of our advertising, publicity and field calls, dealers will be encouraged to sell total plywood systems. Our tried and tested construction systems not only require plywood but lumber, nails, glue and "you name it" for the total profit package.

Strong promotional activity in the industrial and nonresidential construction markets-particularly commercial roof decks-will also help the plywood industry to substantially broaden its market base in 1976.

By Paul R. Hollenbeck Exec. vice president West Coast Lumber Inspection Bureau

Already we can see that the upward trend has started. The U.S. Census Bureau reports unsold new housing from as far back as 1973 has been nearly sold off now.

The seasonally adjusted rate was up a bit in August to 1.260 million, almost a million of which were singlefamily dwellings. This figure approaches that of 1973.The seasonally adjusted annual rate in the West is up 13% over a year ago.

The median turnover for new single' family home sales was 4.0 months for those sold in July. The last time it was this fast was in February of '73,at a rate of 3.8.

This increase in housing demand foretells increased construction contracts, and new life to the forest pro' ducts industries in '76. The cautious but steady financial atmosphere should result in a more solid, financially stable growth pattern'in the coming year.