Increasing timber supply pressure

By Lawrence C. Hart President Fibreboard Corp.

T HE FOREST indusrry is facing a I continuing challenge as we stand on the threshold of the 1990s. We must deal with the complexities of maintaining an adequate timber supply brought onby pressures to decrease available timber under the guise of increased environmental concerns. Industry leaders need to take a creative look at the full use of products from existing resources and the needs that are present in the market place to maximize their efficiency.

The forest products industry, more than most other manufacturers, will continue to feel increasing pressure from special interest groups as resource management and ^mu^ltiple use concerns remain in the forefront. We must communicate with the approachable environmental organizations indicating that we also have sensitivity for our forest resources. We must stress that resources are capable of serving many uses and needs simultaneously. The search for a meaningful dialogue with our critics must continue as the basis for a beneficial working relationship during the 1990s. This cannot be done by a single entity, but will take the united efflorts of industry leaders. Sadly, until that time, we will in all probability see the closure of more sawmills.

Market trends indicate that new construction of single family homes is on the decline while multifamily units are increasing. We have reached the crest of the building boom now that most "baby boomers" have settled into their new homes. We can look for the 1.0 million single family housing starts of the past few years to continue. This effect on demand will be tempered bythe "trading up" to larger homes. Remodeling and repair will play a mofe major role in the use of wood products. Inevitably lumber prices will rise as a result of the basic laws of supply and demand. In order to meet the needs of these market trends, lumber manufacturers will concentrate more on supplying valueadded products designed for the do-ityourself and remodeling markets.

Fibreboard is responding to these trends by modernizing its plants to gain greater efficiency by using smaller logs and permitting virtually no part of the tree to go to waste. The mills that have cogeneration plants on site not only provide a cost effective way to supply energy to run the plant, but enable us to supply surplus energy to local power companies as well. Our newest product, Arrowood (composite structural lumber), will use smaller under-utilized species of logs in the manufacturing of longer, stronger, composite boards up to 36 feet in length. We continue to search for new and innovative uses of available resources to meet the needs of the market place in the 1990s.

Story at a Glance

Single family starts continue at the 1 million level, more repair and remodeling... wood demand indicates higher lumber prices. . timber supply is the No. 1 problem.

We would be kidding ourselves if we said there is only smooth sailing ahead, but we can successfully meet these challenges if we continue to be responsive to the consumer's needs and continue to provide quality products to fill those needs.