Rising Demond for Americon Lumber in Europeon Economy

The.thriving.Europeal economy is creating a rising demand for American lumber, says the Forest products bivision, Business and Defense Services Administration, U.S. Department of Commerce. The appraisal was based on information obtained in several Euiopean lumber centers. In making this summary public in lint with the Administra- tion's foreign trade promotion program, the Division stressed the effort that is necessary foi the American lumber industry to build this market, and laid down a blueprint for sales promotion.

The Division called attention to the fact that lumber exports of 91 million board feet to the European area in the first half of 1960 were I08/o greater than in the first half of 1959. By comparison, the rise in total U.S. lumber ex- ports to all countries was 26%-359 million board feet to 453 million board feet.

.Traditionally, U.S. lumber exports have consisted largely of species, grades and dimensions not generally alrailibie elsewhere. These items are more costly ihan common lumber, and are used principally for puiposes for which the Iatter is not as acceptable.

The Division anticipates further gains in sales of these h.igher-class lumber ifems if the Eiropean economy continues to expand, and says that the maiket could be broadened also if the common grades of American lumber could be delivered at costs competitive with foreign woods. One large Europeal importer was quoted as aelieving that lower grades of hardwood could be imported econoriically for factory use.

Europe buys both hardwood and softwood from the U.S. with _the species generally depending on the particular marke.t. Usually. importers buy a limiied number of species, tailoring their purchases to known customer demand. The Division ascribes the varying buying habits of the importers either to the selectivity factor oi in some cases, laik of familiarity with lolv-volume species.

The U.S. lumber trade with Europe is affected by com- petition from West Africa and the South pacific" areas. .which have recently e-merged as major sources of logs and lumber. Huge decks of large, high qirality logs in the"yards of importers and consuming plants-testiiy td this growing competition. -These hardwoods compete not only with U.SI hardwoods, but also with softwoods for some purposes. Production at one large plant specializing in masi produc- tion of furniture was based primarily on two species of West African woods in combination with various^veneers. Prior. to the war, this firm imported large quantities of American hardwoods for its operation.

Wood in the European area, as elsewhere, is facing grow- ing competition from metals and other materials, ia-rticu- larly in construction. In some countries wood is. a war casualty. Some building codes have been revised to limit the use of wood either as the aftermath of war economy. or for possible protection against attack. Houses .re apt to contain less wood per unit today than before the war. Nevertheless, popularity of r;r'ood ai a construction material seems to be gaining ground.

Generally, importers and consumers alike expressed a genuine interest in U.S. lumber. However. thev stressed that quality and appearance is a major factor in'consumer acceptanc€. U.S. shippers were urged to see that good lumber is shipped and that it arrivei in good condition. Importers felt that U.S. shippers would benefit by visiting customers' yard.s and plants to study their requirementi and the competition offered by foreign suppliers.

The attitude of the European lumber industry is that of a friendly welcome and a challenge to the U.S. lumber industry to share more in their market.

The Div-ision urges these steps as sales-promotion ideas for the U.S. industiv:

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