U. S. Plywood Digs ln for Long-Term 80% Fir Output

New York-United States Plywood Corporation, which led the industry in cutting fir plywood production 20/o in August, has announced long-range plans that will maintain production at the 80/o level. Gene C. Brewer, company president, said that operation of West Coast fir facilities on a four-day week basis had proved "effective but not practical for the long pull."

"Consequently," he said, "the plants were put back on a five-day week, efiective September 26, and. our curtailed production will be achieved through necessary manpower adjustments or elimination of shifts, dependent on the most efficient way each plant can be operated at the 8O/o level."

N{r. Brewer said that the company's plans for long range curtailment of production are in recognition of the need for producing efficiently at a curtailed production rate that is adjusted to the demands of the market place.

"Fir plywood constitutes but 4O/o of our total sales," Mr. Brewer said, "and we manufacture only about one-third of the fir that we sell. We purchase under sales contracts and in the open market the balance required by the customert who buy from our 130 branch warehouses. I emphasize this point to make clear that we are reducing production in our own plants for the sole purpose of achieving stability in the market.

"This action, of course, will necessitate our purchase from other manufacturers of an even larger percentage of our total requirements."

He termed the recent general drop in mill prices as indication of a "chaotic market which only responsible leadership in the industry can correct."

Underlying the present situation, Mr. Brewer said, is the fact that despite "phenomenal growth" that has quadrupled fir plywood usage in the past decade, the industry's produc- tive capacity has outstripped the still-growing demand. "We believe that action such as we have taken," he said, "is a constructive move to correct this imbalance."

U. S. PLYWOOD TO MAINTAIN SALES

Nerv York-In the face of what he termed a "soggy start to the soaring sixties," S. W. Antoville, United States Ply- wood board chairman, had an optimistic report for stockholders at their annual meeting September 21 in the Park Lane hotel. By the end of the company's fiscal year, April 30, 1961, he said, sales would approach last year's record $276 million.

"There's no doubt the soaring sixties got off to a soggy start," Mr. Antoville declared. "Much of the country's industrial production was geared to anticipate a magical upsurge in demand during 1960, and there have been many disappointments."

And with th'e 8o/o upturn in August housing starts and an apparent loosening of mortgage money, "the building industry can look for improvement in the coming months," he declared.

"In the midst of a national election year," he said, "when the in's are diminishing economic ills and the out's are magnifying them, it is extremely difficult to arrive at accurate economic facts on which to base intelligent estimates."

Gene C. Brewer, president, in a progress report to stockholders said that the company is spending more than $11,000,000 "to modernize and. expand manufacturing facilities and our nationwide distribution system." He attributed maintenance of the firm's sales volume at high levels to the continuing program to broaden sales outlets and said that 12 new branch warehouses would be opened in the current fiscal year.

Mr. Brewer pointed out that although cost reduction pro- grams are in force to "improve earnings," the company will not withdraw plans for market expansion.

"For our recently acquired companies in the fir plywood component field," he said, "we are eyeing with considerable interest the farm-building market. Estimates point to replacement of. 48/o of existing farm buildings within the next 20 years. For partially prefabricated buildings of fir plywood this means a potential market of $720 million."

-Nafional Foresf Producfs Week October l6-22-

Weyerhoeuser Product-plonning Dept. To Step-up Wood-product Development

Tacoma, Wash.-Increased responsibilities were assumed by the product planning department of Weyerhaeuser Company's lumber and plywood division on October 1, announces George H. Weyerhaeuser, corporate vice-president who heads the firm's lumber, plywood and timberland group.

An accelerated rate of wood-product development is the objective of the move, he said. This will be attempted through the increased supervision provided by a centralized department.

Many product responsibilities formerly divided between marketing and production will be consolidated in the pro{; uct plannlng department, \Meyerhaeuser explained. It will deteimine wtrictr products the lumber and plywood division is to manufacture, the form in which these products will be sold, and will conduct the development program required to improve present products and develop new ones.

The department will also act as a clearing house for new product ideas and product problems, Weyerhaeuser, reported, and will be responsible for resolving such problems to take advantage of marketing opportunities.

The change will bring promotions to newly created assignments:

Arthur Lahey, manager of sales programming and market research, will become assistant to Alan T. Smith, manager of the product planning department. Paul L. Fossum, district product supervisor, has been named manager of lumber product lines. M. L. Sorber moves from plywood liaison io manager of plywood product lines. Ortie E. LaYoy, product-managel, will become quality standards manager. R. S. Lewis, Pres-to-Log product manager, was named market analysis manager.

-Nalional Foresl Producls Week October l6'22-

Costlemqn Opens Nry Tiburon Yord Wirh Jock Morqn As Monoger

Tiburon, Calif.-Opened the weekend of Sept. 16-17 was the new Tiburon Lumber Yard (next door to the firehouse), owned by John L. Castleman of ihe Mill Valley Lumber Co. It will be managed by Jack Moran, previously assistant manager of the Mill Valley ' yard. Dealer Moran has 12 years of excellent retail lumber experience for the new operatlon.

- Tiburon Lumber Yard will maintain an old-fashioned decor in keeping with the area. Stepping stones, brick, concrete, redwood fencing, grape-stake fencing and all other community needs will be stocked by the new yard. Immediate delivery, Monday through Friday, is guaranteed by Moran and Castleman.

- The firm will eventually have four employes. One of its features to appeal to the do-it-yourself trade will be plywood cut-to-measure.

Jack Moran and his wife Pearl will make their home on Bay Vista avenue. They have three children, Rodney, Jackie Lynn and William, all attending Strawberry Elementary. school. The dealer's wife is active in P-TA and clvlc actlvrty.

The dealer told The Tiburon Pelican last month: "I believe that the Tiburon-Belvedere area needs its own lumberyard. We will do everything in our power to furnish the area with a modern, fully equipped yard to meet homeowners' needs from the basement to the roof."

-Nafional Forest Products Week Oclober 16-22-