Lumber Demand May Dip Slightly

The string of four consecutive years of record lumber demand should end in 2006, as the red-hot home construction market begins to cool, according to a new forecast released by Western Wood Products Association.

Preliminary estimates show lumber demand reached a record 63.9 billion bd. ft. in 2005, rising 3.4Vc from the previous year. For 2006, WWPA forecasts lumber demand to slip a modest 2.lvo to 62.6 billion bd. ft.

All of the decline in lumber demand will come in residential construction. WWPA predicts housing starts rvill total 1.93 million units in 2006, down 6.3Vo.l-ast year, a record 27.8 billion M. ft. of lumber was used in housing construction, or nearly 44Vc of total lumber demand.

Lumber use in the other marketsrepair/remodeling, non-residential and industrial-is forecast to be slightly higher this year as the American economy continues to grow.

U. S. lumber production is expected to decline this year. slipping2.57o. Production by western mills should total 18.8 billion bd. ft.. down from 19.3 billion bd. ft. pncduced in 2005.

Southern mills are expected to produce 18.5 billion bd. ft. this year, doln2.4Vc.

Imports will likely gain market share in 2006. Canadian lumber ship ments to the U.S. are forecast to decline. but only by l.lVc to 21.2 billion M. ft. That volume would be the second highest on record.

European lumber shipments nearly doubled to 2.1 billion M. ft. in 2005. For 2006, lumber from Europe is forecast to rise to a record 2.3 billion M. ft.

Shipments from American lumber mills to foreign destinations are expected to rise for the second year in a row. U.S. lumber exports rose ll.4Vc in 2005 to 897 million M. ft. This year, export volumes should increase to 915 million M. ft.

Final lumber industry statistics for 2005, including production by state in the West, rvill be released bv WWPA later this year.

Instructions: Fill in the grid so that every row, every column, and every 3x3 box contains the numbers 1 through 9 once. Therefore, each number in the solution will be unique in each of three "directions.'

The solution is on page 93.