Redwood'78

By Keith Lanning Executive Vice President and General Manager California Redwood Association

Ftedwood

I llumber and plywood will reach more 1978 uses and users than ever before due to outstanding demand and supply stability, according to Northern California redwood producers.

Booming 1977 markets will carry through for clear and clear all heart redwood lumber and plywood siding, paneling, fascia and trim, and also redwood decks, fences and garden shelters that use construction heart, construction common and merchantable, the garden grades of redwood lumber.

Due to unexpectedly heavy 1977 demand that depleted some mill inventories carrying over to 1978, Cali- fornia Redwood Association members predict a short-term drop in 1978 lumber shipments.

However, all redwood products will enjoy strong overall availability as in the past.

The CRA's eight member mills plus two others reporting 1978 lumber shipments represent about 75% of total annual redwood industry output. They forecast a l3Vo drop, from 835 million board feet actually shipped in 1977, to 724 mtllion board feet in 1978. No real shortages are expected, however - the '78 forecast is 3% above the 'J7 forecast, and actual '77 shipments beat forecasts by 18%.

Redwood's price-supply stability owes much to year-round industry manufacturing, unlike wood species

Story at a Glance

Strong demand matched by stable supply, despite a forecasted drop of 13o/o in redwood shipments 1.65 million housing starts next year multis to hit 200,000.

geared to more seasonal construction markets. Redwood logs' high moisture content that may require lumber airdrying up to two years has stabilized supply, while some redwood mills with huge inventory facilities that stock-pile during unstable markets and ship in volunre during good times have oontributed to price stability.

Within the last l0 years, some redwood producers have also developed new mills to specialize in fast, efficient output of standard dimension lumber, mostly redwood garden grades, from small-diameter logs. In addition to maximizing resource utilization, the new small-log mills with shorter manufacturing and air-drying times represent greater industry flexibility in supplying short-term as well as longer market trends.

Next year's 1.65 million housing starts won't equal 1977, but prime redwood markets, luxury custom homes, interior-exterior remodeling, and outdoor living will continue strong, (Please turn to page 51 )

More Forecasts See Page 26

1. Th"y'r" "log studs". precision sawn from small HEMLOGK and DOUG FIR logs with small knot structures.

2. Excellently manufactured.

3. gnO painted-stencil indicates trim size.

4. w"ll packaged to insure good yarding.

5. Select structural and #1is left in stud grade.

6. Grade stamp easily legible.