Outlook for 1 979

bv G. L. Oswald president Simpson Timber

Seattle

Buoyed by continued strong demand for new homes and available (but expensive) money, the projected homebuilding recession should not be as deep as past ones.

Oflen overlooked, but still very significant, is the do-it-yourself market for wood products. We expect this to take up some of the slack in new housing activity.

All in all we look for 1979 to be a decent year, although we will keep a wary eye cast towards the nation's capitol.

Meanwhile, Simpson will move ahead with its long term program of growth with strength. Our efforts will be concentrated in three areas: management on the national forests.

Second, large capital investlnen_ts to keep our manufacturing facilities competitive. For example, our new sawmill five at Shelton wilt come on stream in the first quar- tgr. Designed to saw 4" - 8" logs, the new plant will allow us to economically produce lumber from the increased harvest of young growth timber.

1979.

. The homebuilding industry, so lmportant to the wood products business, is especially sensitive to the price and supply of money. Current high interest rates are expected to result in a 1606 decline in new housing starts.

Total starts in 1978 are expected to be 1.97 million units, dropping to 1.65 million units in 1979. Fbrtunately for our industry, single family unit starts are projeited to-be down only l3o/0.

First, assurance of a permanent timber supply. Simpson will continue making major investments in intensive timber growing practices on its own land in Washinston and California's redwood re!ion. In Washington, where we are partners with the U.S. Forest Service in the Shelton Cooperative Sustained Yield Unit, rhe allowable timber harvest is being increased substantially. This is due to the great success of the unique forest management program.

^^We'll also support industry ellorts to achieve better timber

Third, intensified efforts to pro- vide excellent service to our customers. We don't intend to lose our reputation for producing quality products and on-time shipments. We also will continue our efforts to develop new products and improve (Please turn to page 94)

Story at a Glance

Home building recession should not be as deep as past ones. 1.65 million sta rts in '7 9. . strong demand, money available, but costly...a difficult but decent year.

Fremont specializes in a large inventory of high quality Douglas fir boards, dimension, long lengths and timbers shipped from select mills in British Columbia, Oregon and California. We &f€ corlstantly adding to our selection oF western red cedar, pine, hemlock and white fir. Other species and specialty items are inventoried and included in our weekly flyer sent to all Fremont customers.

At Southwest Forest, we run our business to help you make a profit.

Example: When we say you'll have that shipment, you get it! Fast. Top quality. Exactly what you ordered.

We both know building products are pretty much alike. But manufacturers aren't. Take a look at us. Order from Southwest Forest and you'll get:

A dependable supplier, a full range of products. We own our ownseven western sawmills, moulding plant, five plywood lay-up plants.

. Mixed loading of lumber; mixed loading of plywood; you don't have to buy more than you need. No profit-eating excess inventory.

. On-time shipment, truck or rail. We run our own truck fleet, our own traffic department; you don't run into wasteful delays.

Conscientious people with the experience and dedication that help you save time and sidestep potential problems.

In other words, the kind of service that helps you turn a profit. Call us at {602) 279-5381. We'll give you what it takes to make it.

That's what the "Swinging S" trademark is all about.