1981 : A Year of Transition

by Thomas R. Ingham, Jr. Vice President- Marketing Simpson Timber Co.

THE besr that I can be said about the outlook for l98l is that its got to be better than the current year.

a raised garden planting area, they can choose between unheated lumber. the "so-called" durable species and pressure treated wood.

It has become a popular trend for people to throw open their doors and expand their living space into the fresh out-of-doors. By using pressure treated lumber it is feasible to turn backyards into flrst class resorts. Hot spas are being surrounded with sundecks; unique planters are being constructed to double as a table for outdoor barbeques; and rows of pressure treated strips can easily be assembled into attractive lattice overheads for patios. When an application requires direct contact with the ground, pressure treated wood has no equal.

In the area of aesthetics, pressure treated lumber is also gaining new converts. Depending on preservatives used, pressure treated lumber will range in color from natural wood tones to various shades of green and brown. The colors blend beautifullv in outdoor settings. If desired, treated wood will accept paint or stain. When left unfinished, treated wood weathers to an atfractive silver gray.

Story at a Glance

Do-it-yourself segment using pressure treated wood should be even stronger next year . remodeling and home builder use to rise . consumers "discovering" treated wood.

By all measures, 1980 has been a disaster for the homebuilding and related industnes. Starts are expected to total 1.2 million for the year, one of the lowest on record since the end of World War II.

Story at a Glance

Slow but steady improvement in housing . . . 1.45 million starts in '81 . higher percent of single family starts lumber mills and plywood plants will operate at 80% capacity . . . mortgage money supply & cost worries continue.

During 198 I we expect to see a slow but steady improvement in housing starts to about 1,450,000 units. The best part of that projection for our industrv is that the share of single family dwellings will increase from 60Vo of the total in 1980 to 65Vo in 1981. (It is interesting to note that the range of projections by various authorities is the narrowest in memory.)

While starts will be up substantially, there still are a number of clouds hanging over the economic horizon.

The level of 1.45 million starts still is not a robust year and will result in the lumber and plywood industries operating at only 807o ofcapacity. Mortgage money supply and cost worries will constantly dog the housing recovery. Govemment borrowing to finance the largest deficit in our history will keep interest rates high and money supplies short. While some of the new mortgage plans are

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