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AMERICA'S DEMAND FOR WOOD 1929 - r97s

Sumrnary of a refort by Stanford Research Institute, Stanford, Calif., to Weyerhaeuser Tbnber Company, Tacoma, Iilash., 1954.

Pofi Vll Plywood ond Veneer

Supply and utilization prospects indicate the price of softwood plywood ar-rd veneer will probably rise in relation to the price of competing materials, but not as rapidly as hardwood products. It is expected the price rise r,vill be relatively less than for lumber.

In the softwood plyrvood industry, the substitution of otl-rer materials for face veneer is likely to rviden the log quality acceptable to the industry. Further improvements in patching techniques and expanded use of species other than Douglas {ir will also help to broaden the supply base.

In the hardwood plywood and hardwood face veneer industries, present costs are at such a level that imports of comparable quality can be sold for less than domestic production, and considerable markets have been lost to imports during the last two years. No great change is expected in the price of utility grades of hardrvood plyr,vood compared with competing materials, but hardrvood plywood output is expected to meet more competition from softwood plywood and hardboard.

Largely as a result of using low-grade veneers in shipping containers, both softwood and hardn'ood container veneer are expected to maintain present price relationships with competing materials.

To sum up this revie'iv of supply and price prospects for the major forest products, the follorving price shifts relative to competing materials are expected:

I. Although lumber prices will probably rise more rapidly than the prices of competing materials, the relative increase is expected to be smaller in the 1952-75 period than it was between 1929 and 1952.

2. Pulp prices are expected to remain approximately the same in relation to prices of competing materials as formerly.

3. Hardboard and insulating board prices are expected to be slightly lower in the future in relation to prices of competing materials.

4. Plyrvood prices are expected to increase slightly in relation to prices of competing materials, but not as much as lumber prices.

The Demand for Plywood, Veneer and Building Board

Demand for veneers and ply'ivood is chieflv from the construction and shipping containers industries, rvith the remainder going into a .ivide variety of manufactured products. Ab<-rut two-thirds of the veneer is used to manufacture plyrvood, of rvhich al>out 50c/o is used in residential and non-residential construction of all types.

Demand for Plywood in Construction

The use of plyr,vood (primarily softrvood plywood) in neu, residential building can be snmmarized as follows:

(Milltons of Square Feet) Cetllngs Mtllwork, and Accesmy In- Butldtngs

These estimates were derived in the same way as the lumber estimates in the section on lumber demand.

The growth in residential use of plywood rvas aided by tlre development in 1934 of exterior-grade plyr,vood for exterior walls. It has since found great popularity among builders of prefabricated houses. At present, about 4O/o of the plyrvood used in new residential construction is for roof sheathing, about 25/o for sheathing and facing of exterior walls and about l8/o for floor underlay. The use of plywood in roof sheathing has increased rapidly in the past few years, and this material now represents about a quarter of the roof sheathing market.

Almost all the use of plywood in exterior walls is for sheathing, with a minor quantity being used as facing, generally in prefabricated houses. Plywood has increased from about 8/o to about 3O/o of the residential wall sheathing market in the past felr' years. Increasing competition from insulating board is expected to retard plyrvood in capturing the exterior wall sheathing market.

The heavy demand for plyr,vood as an underlay material for linoleum and tiles in residential construction is expected to increase at a less rapid rate in the future because the greater use of slab-type construction reduces the need for underlayment. Betrveen 1940 and 1953 plyrvood raised its share of the subflooring market from 8/o to about 25/o, mainly because of more rapid installation than lumber. Plyu'ood also provides a smooth, firm surface ideal for linoleum or tile. Technological improvements in hardboard, however, are also expected to reduce the rate of consumption of plvwood in subflooring.

Plywood consumption in nonresidential construction has also increased at a rapid rate. In 1951, a reported 148 million square feet of plyu.ood 'ivere used, including about 11 million square feet for farm service buildings. A considerable quantitv of hardrvood plywood is also used in nonresidential building for interior panelling.

The most important requirement for plywood in nonresidential construction is for use in concrete forms to provide large, smooth finished surfaces, so finishing time can be reduced. It is estimated that, of all plywood used in non- farm nonresidential construction, about 83% is for forms, about 72/o for cabinets and tritn, about 3/o for interior wall panelling, and the remaining 2/o for miscellaneous purposes.

Plywood for concrete forms faces competition from steel and hardboard, but it is expected that plastic facing on plywood and other product improvements will tend to keep plywood a strong contender.

Plyrvood for maintenance and repair norv exceeds 15/o of the total plyl.ood supply, and it is likely that this market rvill expand considerably through the do-it-yourself trend.

Demand for Plywood and Veneer in Shipping Containers

Veneer in shipping containers is used for baskets and hampers, wirebound boxes, and plywood containers. The latter represent about a fourth of the veneer consumption in containers. Veneer is preferred for shipping fruits and vegetables because of its strength and light weight, which cuts shipping costs.

Competition from paperboard, which has been moving rapidly into the produce container market in the past few years, is expected to be met successfully by the introduction of the kraft-veneer container. This container offers strength in the presence of moisture not equalled by paperboard.

With the expectation that veneer and plywood containers will maintain their market position through 1975 (as pcr (Please turn to Page 38)

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