SUMMARY 



This study was designed to describe sawmill industry changes in New 

 Hampshire with reference to number of producing sawmills through the 

 years 1946-1961. It is concerned with the industry's dependency on white 

 pine as a component of the total annual cut and describes fluctuations 

 in the total annual cut, the white pine cut, and corresponding fluctua- 

 tions in sawmill movement to and from production. It acknowledges that 

 the industry is undergoing a period of change, and that the readjust- 

 ment of the industry and the causes behind this readjustment are both 

 myriad and complex. 



Beyond annual cut fluctuations and producing sawmill fluctuations, 

 the scope of the paper was limited to include only the levels of price 

 for both raw material and finished product at which fluctuations oc- 

 curred. It is realized that the complexity and interrelation of all the 

 factors responsible for the industry's position will not allow a complete 

 and isolated comparison. It does show, however, the position and 

 strength of a few factors as industry fluctuations occurred. An overall 

 picture of the New Hampshire lumber industry can only be described 

 by comparing the operating unit fluctuations and the price consider- 

 ations discussed in this paper with further information from wide and 

 varied sources. 



The paper presents data that have been condensed and tabulated into 

 a form readily interpreted graphically. It depended heavily on infor- 

 mation taken from the New Hampshire Biennial Reports* and the New 

 Hampshire Forest Market Reports to present considerations on the 

 New Hampshire sawmill industry. 



Active sawmills were tabulated each year from 1946 to 1961, and the 

 annual cut of white pine lumber was compared with the number of 

 active mills each year. Stumpage prices were calculated for each year, 

 as were the changes in stumpage price from one year to the next. Lum- 

 ber prices for 4 grades and 2 sizes of lumber were compiled from quota- 

 tions by the Boston Commercial Bulletin. These prices by grade and 

 size through the years, reflecting the New England price, were com- 

 pared by years with both sawmill movement and stumpage prices. 



The results of the study indicate that there has been a significant de- 

 cline in the number of operating sawmills in New Hampshire from 1946 

 to 1961 and that the movement from production of a larger number of 

 New Hampshire sawmills has not been accompanied by any significant 

 increase in sawmill size. This conclusion is supported by the fact that 

 there has been a decline in the annual cut of white pine lumber at a 

 rate equal to, or greater than, the rate of decline in production units. 

 During the sawmill movement stumpage prices for white pine have 

 increased relatively greater and faster than lumber prices. While lum- 

 ber prices have increased significantly in general, most of the increase 

 has come in the upper grades. Typically, number 4 common lumber 

 has shown the least change in price. 



The decline in the New Hampshire sawmill industry has occurred 

 during a period when the margin between stvimpage and lumber prices 

 has become increasingly narrower. Several other factors not covered in 

 this paper are also felt to be causative, but the extent of their effect is 

 unknown. The narrow margin has resulted from an adverse price-quality 

 relationship between stumpage and the derived lumber. 



* State Forestry and Recreation Commission. 



