DOUGLAS

. Studs, Boqrds o Dimension Lumber o Plonks, Timbers o Rqilrood Ties o Industriol Cuttings

Over the last decade, 1959 was the third best in terms of growth. The pattern of a sharp drop after a year of tremendous growth is not new, however. Growth fell from 26% in 1950 to 7L/a in 1..95t, and from 23/o in 1955 to only 3/o in 1956.

Bullillng Starts Importa,nt

There are a number of reasons for changes in the growth pattern of the plywood industry, Difford pointed out. The two most important, he said, are fluctuations in building starts and changes in production capacity.

Building starts rose 22% in 1959 over the preceding 12 months, but were expected to show a 1960 drop to about the same level as 1958 after all figures were in, according to most housing surveys. The housing market absorbs about 45Va or more of the fir plywood produced, so this drop in starts had a profound efrect on market conditions.

Plywood Use Cllmbs

"One of the things that saved us from even worse conditions was the success we have had in winning a g:rowing share of this market," Difford said. "In 1950, a survey showed that 500 sq. ft. of plywood was used in the average new house. In 1959 a survey of 26,000 new houses showed that our share has g:one up to 2647 sq. ft. per house."

Predictions of a good housing yeai in 1959, coupled with the economic reality that dollar recovery from timber is greater in plywood manufacture than lumber production, helped encourage 13 new mills to enter the market, Difford said. At year's end, industry capacity is llVo gteater than it was at the end of 1959, and seven mills are completely shut down.

Housing: is expected to recover slightly in 1961, building up to another boom about 1965, when the housing experts predict family formations will reach a new peak.

EUREKA, CAtlF. r (Generol Office) 630 J. Sr.

Hlllside 3-7OOl, TWX EK 84

Southern Colifornio ofiicq FRonfier 5-6444 (P.O. Box 1356Torronce, Colif.)

More Potential in Houslng

"That doesn't mean our industry will have to mark time for five years," Difford said. "There is a logical potential of about 9000 sq. ft. of plywood per new house start. We'll be working toward that goal and also will be expanding our work in developing new markets and penetrating deeper into existing ones.',

The Second-Home market, pioneered by DFPA and beginning to (Continued, on Page 23)