Treated outlook Positive

By Bill Bond, Jr. President Western Wood Preservers Institute

Story at a Glance

Some shortages of Pressure treated lumber in '88. strong demand... increased remodeling sales. more marketing support for retailers from producers.

lumber products'

Treated lumber sales have experienced strong growth for the Past 6 years. Will it continue? Even if we see a slight slowing in new home starts in the Western states, we still have the converse factor of PeoPle who want to add on and imProve their existing homes. As a result. we expect the do-it-yourself market and the home imProvement construction to be very strong in 1988. And Dressure treated wood is the natural ihoice for these projects.

More dealers and home centers are carrying treated lumber or carrying a broader inventory of treated stock. They know consumer interest in pressure treated wood products is there, along with the sales. Our industry is becoming more sophisticated in marketing suPPort to retailers. Member companies are very much interested in assisting retailers in the education and information needed to communicate to their buyers the benefits and values of pressure treated wood they buy.

Retailers will continue to benefit themselves and their customers when they make it easy to obtain pressure treated lumber.

THE WEST is expected to grow

I at rates close to the national average in 1988, as the economies of those states which suffered declines in 1986 due to lower oil prices slowly recover. Although the region is expected to experience increased employ- ment and income in the next year, new housing and general construction will not equal previous highs. This is because many states have high vacancy rates and building inventories to absorb. A sizable amount of lumber use will be for repair and remodeling.

The West is expected to grow more slowly in 1987 and 1988 than it did during the previous period. Nonfarm employment is estimated to have increased 3% in 1987 and forecast to advance 2.80/o in 1988. The western states which exPerienced declines in 1986 probably reached bottom that year, but it will take several years until the impact of oil prices lower than $24lbarrel have fully re.verberated through their economles.