CONCLUSIONS 



Retail lumber yards of the Northeast are no longer just "lumher 

 yards." They sell any produets that may he useful to homeowners and 

 building eontraetors. Lumber sales are less than 40 percent of these re- 

 tailers' gross annual dollar sales volume. However, wood product sales 

 exceed 80 percent of total dollar sales volumes. 



The lumber available to customers is mostly of western species, es- 

 pecially in dimension stocks, 66 percent of all purchases. However, all 

 yards do stock eastern softwoods. Large western firms are able to pro- 

 duce lundicr that will meet construction codes and loan institutions re- 

 quirements. About 50 percent of western shipments to retailers are kiln 

 dried, while only 14 percent of eastern lumber is. Eastern lumber is not 

 available in large quantities, kiln dried. 



Lund)er yard retailers procure 68 percent of their lumber from 

 market intermediaries, the remainder directly from producers. Most 

 yards buy some lumber directly from sawmill firms, however. Vertical 

 integration at both ends of the size scale of firms is evident. Thus, own- 

 ers expect to absorb the costs and the profits of the middlemen. 



The volume of dimension lumber sold in the region is ncarlv twice 

 the volume of boards. Plywood and other type sheathing have replaced 

 boards to a substantial amount in construction uses. Despite this, eastern 

 sawmill owners are producing twice the volume of boards over dimen- 

 sion. Even imports from Canadian sources are two-thirds dimension 

 stocks. 



Most dimension lumi)er is purchased in 16-foot lengths or less; 

 only 16 percent is over 16 feet. All of this latter stock conies from Can- 

 adian and western sources. Eastern species are mostly cut into shorter 

 lengths and this may contribute to its lack of manufacture as dimension. 

 Western and Canadian stocks are over 50 percent 16 feet or k)nger 

 lengths. 



Retail yards are purchasing lumber as a finished j)rodiu"t ready for 

 sale. Such operations as lund)er grading, grade marking, surfacing or 

 dressing, and seasoning have been performed by producers or middlemen 

 for the retailer whose unit is a store, not a shop. A few yards do carry out 

 some or all of these operations but they are usually vertically integrated. 



The most important factor influcMicing purchase of eastern hnnber 

 by retailers is its immediate availability. Howcvim-, th«> most iuqiurtant 

 factor for all lumber species is quality of manufacture. Eastern pro- 

 ducers have not been abb* to meet western firms competition on this 

 factor. In addition, size and IcMigths available are of primary importance; 

 and again, eastern lumlxM- is not available in the larger sizes and long 

 lengtb>. While price is an inq>ortant factor to all retailers. dilVerences 

 in quality between eastern and western luud)er manufacturing gives 

 western lund)er a price advantage (b^spite shipping distan<'es. 



The vari«>ty of services offered to custonuM's bv \ ard owners are sub- 

 stantial. Increasingly, aids are offered to fit wood to the job the customer 

 has in mind. Very few customers understand grad<' difTerences in lundjcr 

 or species differences. Help from sales people is essential. Written as well 

 as verbal aids are evitb'nce of aggrosivc^ retailing. 



34 



