The worst is over

Bv H.C.A. Hunter Director-Sales & Marketing Lumber & Plywood Division St. Regis

S 1982 mer- Icifully comes to an end, there is mild op- timism and a strong feeling that the worst is over for the building products industry.

It will be interesting to view the results of the 1980-82 home building debacle on contractors and manufacturers of wood products. Some of the lumber and plywood producers have already closed their doors and others face serious problems with high cost timber speculatively purchased in the last two or three years. Without some kind of relief there could be even more casualties in the manufacturing segment.

Story at a Glance

Lumber prices higher, plywood and waferboard prices low. more wood use by repair, remodeling and renovation show comeback lor housing factory.builts a growth segment. .. by spring business will be fun again.

this as a strong growth industry for the balance of the 1980s.

Plywood and waferboard will be locked in a death struggle for the lower end of the panel sheathing market and prices will likely stay low. Not so in lumber and studs where mills will push prices up swiftly in an attempt to make up for the substantial losses suffered since 1979. This aspect will be even more dramatic if production levels remain low as suggested.

The West with its high unemployment will likely be slower to recover than the South, but should be stronger than the Midwest and Northeast. The first quarter of 1983 probably won't be very strong but we expect by springtime this business will be fun once again.