NPA Orders Soltwood Set-Aside of 3OVo

In a new move to meet growing military requirements for plywood, the National Production Authority has ordered softwood plywood manufacturers to set aside up to 30 percent of their production. for DO rated orders. The new set-aside order will affect September production and provides that:

1. Manufacturers increase their reserve to supply defense rated business from the present 20 per cent to 25 per cent during September and October.

2. Manufacturers boost this set-aside to 30 per cent October 31st and thereafter.

3. A higher proportion of exterior plywood with waterproof bond be held for rated orders than the overall set-aside would indicate.

Actuaily, the order provides that individual manufacturers of exterior panels-used in the defense effort for auxiliary surface craft, barracks, field buildings and other outdoor rlsesfurnish 50 per cent of their reserve in such panels.

Plywood for concrete forms and other top grades of interior type panels for indoor applications are affected by a sirnilar 40 per cent provision applying to those manufacturers who do not have facilities for making exterior plywood.

Commenting on the set-aside, O. Harry Schrader, Jr., managing director of Douglas Fir Plywood Association at Tacoma, Wash., explained that only about one-third of the industry's overall production is in exterior.

"Because of this," said Schrader, "the defense effort will be assured of more than 30 per cent of the plywood-with waterproof bond. Actually, we estimate that about 38 per cent of exterior plywood and 27 per cent of interior plywood must be reserved for DO rated orders under the new set-aside after October."

Schrader emphasized, however, that the overall set-aside would take only 30 per cent of total softwood plywood production leaving 70 per cent, of course, free from regulation and available to normal civilian distribution and retail channels for homes, farm buildings and other building ancl industrial Llses.

Currently, clirect and indirect military demand is taking rnore than 20 per cent of the softwood plywood under an NpA directive providing for a 20 per cent set-aside issued about two months ago. This is in sharp contrast with the less than one per cent of softwood or "construction" plywood consurned by the military prior to Korea.

The west coast plywood industry affected by the order produces two-thirds of the nation's plywood and nearly all plywood used in construction. Output today is averaging more than 50,000,000 feet a week, more than twice as much as at the end of World War II.

The new set-aside, known as NPA-M63 Amended, requires plywood manufacturers to hold the reserve for defense business up to 30 days in advance of the month of production. Any portion of the reserve (for DO orders) that has not been committed prior to 30 days before production may be sold to the regular trade in addition to plywood which is not subject to regulation.

The order contains a new provision that unless specifically directed by NPA, a manufacturer will not be required to accept DO rated orders for delivery more than 90 days later than receipt of the order.

Softwood plywood affected by the order includes Douglas fir, western hemlock, ponderosa and Idaho white pine, noble fir, white fir and redwood. These are the softwood plywoods produced under U. S. Commercial Standards CS45-48 (Douglas fir plyu'ood), CSl22-49 (other Western softwood plywood) and CS157-49 (pine plywood).

New Building Curb Ordered

Washington, Aug. 3.-The National Production Authority today banned the start of all new construction until October 1 unless the projects use only minor quantities of steel, copper and aluminum.

Most residences may go ahead, as well as small stores and even some amusement places-hitherto prohibited.

But the order will "freeze temporarily the start of new factories, office buildings, schools, l-rospitals and public buildings.

Builders vr'hose projects exceed 'the permitted limits may apply for metal, to be delivered after October 1, under NpA's allocation s.vstem, known as the controlled materials plan or "CMP." Rut they may not get it.

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