Wholesalers Market 50 Per Cent of Mill Sales of Lumber in United States

Washington, Sept. 17.-In Washington and Oregon, two leading lumber-producing states of the country, nearly 60 per cent of the product of the sawmills is sold through wholesalers; less than 11 per cent direct to retailers, according to an analysis of U. S. Census reports recently made by the National Lumber Manufacturers Association.

The Southeastern states of Alabama, Florida, Georgia and South Carolina also show heavy wholesale distribution, between 60 and 70 per cent of the sales of the sawmills being through this medium. In South Carolina and Florida, retailer distribution is about 11 per cent of the direct mill sales. Georgia shows only 2.2 per cent of its mill sales to retailers, the lowest proportion of any important lumber state. Wisconsin and Michigan are producing states whose lumber sales show higher percentage to wood-consuming manufacturers than any other states except Tennessee'

These percentage relationships and their corresponding footage of lumber sales by manufacturers are available for the first time in the industry through the "Distribution of Sales Reports" compited lor 1929 by the U' S. Census Bureau. This shows for manufacturing industries the distribution of their sales through various classes of distributors, namely, wholesalers, retailers, for export, in local sales, direct to consum.ing manufacturers, and interplant transfers. For the lumber industry wholesale distribution is further classified into wholesalers and jobbers, brokers and commission houses, and branch wholesale establishments' Retailer sales include those to retail yards owned by manufacturers.

The complefe report covers distribution of sales of logging camps, sawmills and affiliated planing mills. Sales of lumber, or the product of the sawrnill, are shown in quantity, value and percentages of total. Value of other products and percentage of sales is a part of the survey. Data are included f.or 4,484 plants in 33 states, each plant having an annual output of $5,000 or more.

The lumber sales aggregate 26,617,151,000 feet valued at $740,865,000. For the country as a whole, lumber sales by the mills to wholesalers were 48'9 per cent of the total, these being divided into 30.2 per cent through wholesalers and jobbers; 14 per cent through brokers and commission houses, and 4.7 per cent through branch wholesale establishments. Mill sales to retailers were 14.9 per cent of the total; to manufacturers of ivood-consttming plants, 13.8 per cent; interplant transfers, 4.4 per cent ; for export, 8'4 per cent; to railroads, public utility companies ancl contractors, 4.7 per cent; local sales, 4.7 per cent and sales to other industrial consumers, .2 per cent.

Distribution of Mill Sales in Various States

In addition to Washington, Oregon and the Southeastern states of Florida, Georgia, Alabama and South Carolina, where more than 60 per cent of the sales of the mills are marketed thiough wholesalers, California, Idaho, Montana' Arkansas. North Carolina and West Virginia shorv rvhole- saler distribution between 40 and 50 per cent of the mill sales.

In California, Idaho, Louisiana, Minnesota and Texas more of the lumber sold by the mills goes direct to retailers than in any othe.r states, Minnesota and Texas leading with about 50 per cent and 43 per cent, respectively, of their sales, the others averaging between 23 and 3O per cent.

Wisconsin reports 8.5 per cent of its mill sales of lumber direct to railroads and public utility companies: Michigan, 6.3 per cent; Louisiana, 1O per cent, and Montana, 13 per cent.

In the coast states of Washington and Oregon, 16.6 per cent and 11.6 per cent; in Mississippi, 14.2 pet cent; in Florida, 10.9 per cent; in Alabama, 8.8 per cent; in Louisiana,7.5 per cent of their total mill sales are for export.

The industrial states naturally lead in the distribution of mill sales direct to wood-consuming plants, as Michigan with 48 per cent of its total going to these manufacturers (including some interplant transfers) ; Wisconsin with 34 per cent; Tennessee, 39 per cent; North Carolina, 24 pet cent. California, Mississippi, Minnesota and Arkansas report'around 2O per cent of their mill sales are direct to manufacturers. Local sales are greater proportionately in North Carolina and Kentucky, in Texas, Virginia and Washington than in other lumber-producing states.

Although the Census report covers 33 states, this revierv includes comparison of 20 states each of whose sales were over 250,000,000 feet during the year. The percentage comparison for the seven leading lumber producing states of the country follows:

*IIL.ol"rt transfers and local sales not included in this table; percentages for U. S. +.+ for interplant and 4.7 for lmal sales' i"ciuaei .t"" brokers and comm,ission ho-uses and branch wholesale includes relail .vards.owned bv manufacturer; manufactrrrerc are those of wmd'consuming industrres'