Hardwood plywood should participate in improved market

By Clark McDonald Executive Vice President Hardwood Plywood Manufacturers Association

Tye High

r lnterest rates which have brought about a recession for housing and other industries have affected the hardwood plywood manufacturers, the importers of hardwood plywood and the prefinishers of hardwood plywood.

We expect l98l domestic production to be at least 5q0 less than 1980, a year that was also considered depressed. Imports of hardwood plywood for the first half of l98l were approximately 1.37 billion sq. ft., surface measure. In the last two years, more than I 5 prefinishers have closed plants in at least ten states.

The National Association of

Home Builders estimates that only 1.08 million housing units will be built during 1981. In 1982, NAHB is forecasting total housing starts of 1.27 million with the hope for two million housing starts in 1983. With the trend toward larger homes coming to an end, smaller houses will mean less hardwood plywood for

Story at a Glance

Domestic hardwood plywood production will be off at least 5olo this year remodeling now a bigger market for many of our members than new housing.. smaller homes will use less hardwood plywood.

flush doors, cabinets, wall paneling, furniture, flooring, etc.

For the first nine months of 1981, mobile home manufacturers shipped 190,177, compared to 163,623 for the first nine months of 1980. The Manufactured Housing Institute is optimistic that the industry will perform well during the next few years because of lower costs associated with manufactured housing as compared to on-site housing and because of improved land use and zoning policies.

The remodeling market is larger than home building for many hardwood plywood products. Remodeling will probably show better growth as compared to new on-site home construction.

The National Kitchen Cabinet Association is now promoting the use of standard kitchen cabinets in other parts of the home. Some cabinet manufacturers have added bookshelves, wall units, stereo cabinets, wet bars, etc., to their cabinet lines. This may be one of the keys to selling more hardwood plywood to the kitchen and vanity cabinet manufacturers. The European cabinet influence is strong, and domestic manufacturers are using

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