A Good Year for Hardwood Plywood

By Clark E. McDonald Managing Director Hardwood Plywood Manufacturers Association

I T appears I that 1979 will be a good year for the hardwood plywood industry. The first two quarters could be as good or better than the end of 1978, which for many manufacturers was as good as it has been for many years.

Much of the strength of early 1979 will be clearing up the backorders that now exist. In some cases manufacturers have reported 2 to 3 month backlogs. At present there appears to be no slowdown in sight.

Depending on what the administration does to combat inflation, housing should remain fairly strong. There may be some slowdown the second half of the year but the strong start will provide for an excellent overall year.

The good year in 1978 and the reason for optimism in 1979 is the strength of the housing market, and the use of plywood in new product areas such as replacing steel and plastic components. New vinyl and paper overlay patterns are also opening up markets for wall paneling where traditional woodgrain may not have been popular.

The do-it-yourself and the Professional remodeling business continues to show strong growth and wall paneling provides these users with a versatile material to carry out almost any type of project.

Problems facing the industry are

Story at a Glance

Plywood replacing steel and plastic in some new product areas... d-i-Y and remodeler business strong. . . problems include material shortages, and government regulations.

material shortages in certain product areas and higher costs due to increased government regulations.

Some species of veneer are currently in short supply.This is causing some increase in price and leading to a shortage of some grades of products.

The cost of compliance with past and new government regulations continue to add to manufacturing costs.

In spite of this, recent studies show that hardwood plywood remains one of the best buys in the construction material market. The industry remains confident that business will remain at good levels throughout the coming year.