2 minute read
Long term looks good
By Xeith [rnning Executive Vice President & General Manager California Redwood Association
term as well as short term potentials and the effect on both of the influx of
Canadian lumber, now respon- sible for one third of U.S. lumber sales.
In the short term, Canadian shipments have caused a serious drop in prices of many U.S. species. Redwood clears and uppers have been less affected than other products, but the cornmon grades of redwoodthe garden, deck and outdoor use lumberare in stiff price competition with other knotty species whose lowered prices allow them to be pressuretreated and marketed for the same end-uses.
Short term redwood projections must consider the price impact of the Canadian influx as well as the increase of pressure-treating of other species and the marketing efforts being put behind these new products.
The redwood response will continue to stress the inherent natural qualities of the wood that make it such an ob' vious choice for outdoor projects, and will drive home the message that the buyer is assured of a dependable sup ply from long-time producers. It will be a competitive year, but redwood sales are expected to keep pace.
The redwood industry's dwelop ment of new air-seasoned sidings from the common grades of lumber is another answer to increased competition in commons sales. Thesc new products have been well received in the marketplace and will continue to strengthen redwood commons sales.
In the long term, all redwood markets have reason for optimism. Continued @nsumer affluence and emphasis on the pleasures of outdoor living are creating nationwide demand for decking lumber that can allow room for many species in the market, and gradual strengthening of the
Canadian dollar may slow the flow of that country's lumber into U.S. markets.
But the most promising prospect in the long term picture comes from a new and different developmentthe growing popularity of traditional housing styles. Traditional design creates increased demand for bevel siding, roof overhangs and soffits, wood detail and wood window and door framesall excellent markets for redwood.
The graying of America is a big factor in this traditional trend. Older Americans are the fastest growing segment of the U.S. population today, and they are comfortable with the traditional look in both houses
D-l-Y
flun TNDUSTRy today is char-
Yacterized by excitement and incredible growth. Many companies, including Ace, are enjoying the best year in their history. Reduced interest rates, increased housing starts, greater consumer spending and more. d-i-yers are creanng opportunities to grow and prosper.
Through 1990, the compound annual growth rate will be 8.590 in the home improvement market. Factors going into these projections include the aging housing inventory which needs constant upgrading. There are an estimated 50 million homes which rue over 20 years of age. Experts also expect an increase in home sales, and recent home buyers spend 4690 more on d-i-y projects than the average household.
Other statistics show that the d-i-v industry is entering a new strategic eri characterized by a sustained high level of demand and above average earnings prospects. Incomes are up with the strengthening economy. Unemployment is down. The years ahead will present great opportunities for those who know their market and their customers.
Identifying the consumer and meeting his needs may well be the biggest challenge to all of us, as well as to our and commercial buildings. Many empty-nesters are buying townhouses, multi-units or other shared facilities, and all are heavy users of low-rise
Story at a Glance
Redwood faces competitive year with Canadian and pres. sure treated lumber..air.sea. soned sidings will strengthen sales...traditional country style home using wood is emerging trend.
commercial professional buildings. In all of these building types, they tend to prefer structures that have the same feel and style as the single unit homes they previously enjoyed.
There is a return to traditional values among younger buyers as well, and the new traditional, country or cottage-style homes have a romantic charm that make them attractive to this vital market.
Americans of all ages are indicating clearly that they like to live with the beauty, familiarity and richness of natural wood. Redwood. with its inherent quality, high recognition, and proven performance, will profit from what appears to be emerging as a solid long term building trend.
