Afler a yecrr of 'leveling-out'-- Western Pine lnduslry Will tleet '57 Heqd-on With lntensive Merchqndising, Constructive Efiorf

After two straight years of new all-time highs in production and shipments, the Western Pine region lumber industry leveled out in 1956 to approximately the 1954 pace. As the year drew to a close, the Western Pine Associatron estimated shipments for 1956 at about 7.75 billion feet, at which the volume stood third best in the region's history. There was still some possibility the 1954 mark of 7.84 billion feet might be topped, ranking 1956 second only to the all-time record of 8.5 billion feet of 1955.

Forecasting for 1957 is strictly on the "iffy" side. A. L. Helmer, Montana lumberman and president of the l2-state association (left), said 1957 was "really a toughie to look into" since so much depends on availability of mortgage credit.

"Residential construction is the bellwether of our lumber markets," he pointed out. "The Federal Reserve's 'hard money' policy slowed housing starts in 1956. Some experts predict there will be action in Washington, D. C., making more mortgage money available after the first of the year. Unless we are willing to predict positive action along that line, I think we'd better look for a housing year pretty much like we have just had.

"We are taking a breather on setting new records, but our markets are as great as ever. Our old friend, Mr. Competition, is back with us, big as life. We have an opportunity to advance further beyond the gains of the past few years by more intensive merchandising methods. I've always believed in a strong program of merchandising as being for the long-range good of the industry, and it goes without saying that we should not fear a need for it, but rather meet it head-on with constructive effort."

At Association headquarters in Portland, an analysis showed 1956 shipments (sales) held fairly close to the previous year's record pace until mid-year, being down but I.3Vo at the end of the second quarter, compared to the big first half of 1955. In the later months, however, there came a drop in demand somewhat heavieg than expected, averaging close to IO/o below the comparable period of 1955. which rvas the busiest ever for the Western Pine industry.

Some increase was expected in 1957 in commercial and industrial construction, possibly chiefly in costs, but the rate of home building was nevertheless viewed as key to the lumber demand outlook for the region.

Meanwhile, the industry reported a year of notable growth in Association membership. More than 50 mills were added to the roster in 1956. Ten years ago the Western Pine Association was made up of about 170 companies .vhose shipments came to some 65/o of all shipments from the region. Now there are about 375 member companies operating nearly 440 mills, and their shipments come to about 85/o of the region's total lumber output.

"Production from our region," President Helmer pointed out, "represents about $1 billion in sales, plus indirect business generated in the localities and states by these lumber sales. Our mills employ about 65,000 persons and produced in 1956 enough lumber to build approximately 700,000 houses. This production adds up to more than onefourth of the softwood lumber production of the country

"The Western Pine industry continues to expand its already large seasoning facilities. Ernphasis is kept on good manufacturing methods, utmost standardization of grades and the best of shipping practices. We shall continue to apply ourselves to these good practices which build prestige in the lumber trad€," he declared.

I\{r. Helmer reported one brand new type of lumber (Continued on Page 121)

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