Another Record Year for Demand Pushes Western Lumber Production Higher in 2005.

PORTLAND, Ore. -- The fourth straight record year for lumber demand in the U.S. helped Western sawmills elevate lumber production to the highest volume since 1990, according to final production figures for 2005 prepared by Western Wood Products Association.

Paced by increased output at mills in Oregon, Washington and Idaho, Western lumber production reached 19.3 billion board feet last year, up 3 percent from 2004. Lower prices during the year reduced the estimated wholesale value of the lumber to $7.7 billion, down 3.3 percent.

WWPA compiled the final industry totals for 2005 following its annual survey of more than 230 mills operating in the continental West and Alaska.

Washington led the state gains, rising 5 percent to 5.7 billion board feet, the best production year since 1929. Oregon remained the largest lumber producing state in the nation, climbing 4.3 percent to 7.4 billion board feet. Idaho mills increased production by 3 percent and surpassed 2 billion feet for the first time in 15 years. Montana and Wyoming posted increases as well.

Production in California slipped by 2.7 percent to 2.69 billion board feet. South Dakota and the Four Corner states of Arizona, Colorado, New Mexico and Utah also posted declines in 2005.

The best housing market in more than three decades generated record demand for lumber. Some 64.3 billion board feet of lumber was used in the U.S. last year, up 4.5 percent from 2004.

An all-time high of 27.6 billion board feet of lumber was used in residential construction, framing some 2.07 million housing starts recorded for the year. Lumber used in repair and remodeling surpassed 20 billion board feet for the first time in history. Together, the two markets accounted for 75 percent of the lumber consumed.

Production in the southern U.S. posted solid gains in 2005, rising 5.2 percent to 18.99 billion board feet. Total U.S. lumber production hit 40 billion board feet, the best year in modern history.

Higher demand also brought record lumber imports into the U.S. market. The volume of lumber imports topped nearly 25 billion board feet. Canada supplied 21.5 billion board feet to the U.S., up 2.5 percent and the eighth consecutive annual increase. European shipments reached nearly 2 billion board feet in 2005, up 45 percent. Imports from Latin America and New Zealand finished the year lower.

Western Wood Products Association represents lumber manufacturers in the 12 Western states and Alaska. Based in Portland, WWPA compiles lumber industry statistics and provides business information services to mills. The Association also delivers quality standards, technical and product support services to the industry.

2005 Western Lumber Production

                                           Volume           Value
                                       Million bd. ft.    Million $
                                       --------------- ---------------

Oregon                                          7,433        $2,839.5
Washington                                      5,729        $2,257.9
California                                      2,688        $1,248.1
Idaho                                           2,026          $833.2
Montana                                         1,001          $371.1
South Dakota                                      181           $72.3
Wyoming                                           121           $46.3
Four Corner states (AZ, CO, NM, UT)               153           $58.3

TOTAL                                          19,333        $7,726.7

Source: Western Wood Products Assn.