Hardwood Plywood Selectively Opti m istic

future, provided over-zealous federal and state .regulators don't "dampen" the trend through all-encompassing fl amespread requirements.

The furniture and cabinet market, primary users of stock panels and cutto-size hardwood plywood, also seem to have weathered a mid-year slump and should end up at least 25% ahead of 1975. One industry source cites a release of pent-up demand by consumers as the economy relaxes anxieties

Story at a Glance

Increased remodeling means "selective" optimism for the building products merchant . . . furniture shipments to be up 1O% 1.625 million conventional housing starts, no mortgage money shortage likely.

Clark E. McDonald Managing Director Hardwood Plywood Manulacturers Assn.

somewhat, and estimates furniture shipments reaching $8 billion dollars n 1977, up an additional l0% over 1976.

The outlook for construction and related industries looks solid through l9l7 . Industry estimates are for I,625,000 conventional starts and 325.000 mobile homes over the next twelve months. We feel that singlefamily starts will increase to 'about I,400,000 (a more normal l0% of all starts) which implies .sorne improvement in apartment construction and rehabilitation after a couple of sour years.

This jibes with furniture and cabinet forecasts, as well as less-clearlydefinable trends in remodelinq. Both parties recognize the importan*ce of a strong housing industry in strengthening the economy. and cutting unemployment, so fiscal policy is likely to encourage building and buying,