Over-the-counter sales promising

By William T. Robison President American Plywood Association

Q rnucfURAL panel produc1l tion in the U.S., buoyed by rising demand, should reach at least 25 billion square feet, 3/8-inch

Mild optimism... 1.63 to 1.65 million housing starts. . substantial increase in remodeling markets. industrial wood markets good continued oversupply. be noted deals with a continubasis, by the end of this year a 700/o increase over 1985 production and the fourth consecutive annual production record for the panel industry. In spite of an expected slight dip in housing starts, APA expects the strong production pace to be maintained in 1987.

The year ahead should be one of even more diversified penetration in nonhousing markets, particularly over-the-counter sales through home centers nationwide. This bright forecast takes into account the likelihood of a reduction from 1.85 million housing starts this year to 1,75 million in 1987, due in part to tax changes impacting multifamily construction and to anticipated upward pressure on interest rates in the second half of next year.

In 1987, in excess of 25 billion square feet of structural panel production should be required, as new promotional gains are added to a marketplace which already has strong demand momentum. The current wait-and-see attitude of consumers as they attempt to understand the new tax laws introduces a note of caution, but APA is forecasting that the public will adjust to the tax changes and