ALIFORNIA SUGAR & WESTERN PII{E AGENCY,Inc.

Plywood lndustry Studies Moior Morketing Moves

Gearhart, Ore.-The annual meeting of western fir plywood manufacturers in Gearhart, Ore., portends some potential moves in the plywood business that could have farreaching effects. Among the highlights:

1. A proposal that the industry market a "one- glue-line" product with exterior adhesives, completely eliminating interior plywood.

2. A survey report that recommends the establishment of a "satellite" association to promote trusses, box beams, stress-skin panels and industrial components made by plywood fabricators, including Lu-Re-Co producers.

3. A preliminary survey by the U. S. Forest Products

Laboratory at Madison, Wis., establishing that scientifically controlled use of old-growth timber affected by white pocket may be used in fir plywood without any sacrifice in performance standards.

Some 250 mill officials from Washington, Oregon and California were on hand for the meeting which is officially held to elect Douglas Fir Plywood Association officers for the ensuing year. These included re-election of A. W. Agnew, of Sonoma, Calif., as president.

On the economic front, Peter W. Hoguet of New York, president of the Econometric Institute and one of the country's leading economists, predicted that plywood demand will reach an annual rate of six billion sq. ft. by the second quarter of 1959. Production in 1957 was 5.4 billion feet. Hoguet said the grorvth will be prompted by greater penetration of established markets and by a combination of risirrg construction activity and industiial production.

In his keynote address, Agnew confirmed Hoguet's confident outlook with figures showing that fir plywood has increased its sales in a declining market for the past three years. Despite this, Agnew described current conditions in the industry as an "era of profitless prosperity."

Agnew urged an aggressive trade promotion program as the best means of creating strong demand for plywood.

"I think the work of the association is largely responsible for.the very decided increases in fir plywood demand," he SATG.

W. E. Difford, managing director of the association, and members of his staff presented recommendations on an allexterior product and on special promotion of plywood components.

Arthur H. Jones reported that94/o of the industry is now equipped with hot presses and that already 8O/o of the industry's output (including interior plywood with extended resin glues and other types of adhesives) is manufactured in hot presses.

Based on these and other factors. the association asked the industry to consider now making initial moves to conversion to all exterior within the next few years.

An immediate market for an additional 200 million feet of plywood was forecast by Association Director James F. Fowler as the potential payoff for aggressive promotion of plywood components and the independent fabricators who might promote them.

Fowler proposed a satellite association to be called Associated Plywood Fabricators which would provide inspection, cluality control, engineering services and promotion for firms interested in this business. He said 145 firms have already expressed interest and that an effort of this kind would also build sales for the 1,300 Lu-Re-Co dealers who are making wall and roof panels.