April 17, 2000

Contact:  Jack Phelps, Executive Director, 907-225-6114

 INDUSTRY WELCOMES NEW MARKET STUDY

The Alaska Forest Association today applauded the work of Juneau-based McDowell Group reflected in a study of timber markets prepared for the Ketchikan Gateway Borough. "The Global Market for Timber from the Tongass National Forest," a 133 page study, was commissioned by the Borough last year and was unveiled in a presentation at the borough Assembly meeting Monday night. "This is the first objective and comprehensive look at demand for Tongass-type timber that has been published in nearly a decade," said Jack Phelps, executive director of the industry trade association.

"The conclusions of this report are reminiscent of a government-sponsored study completed in 1992, before Clinton-era politics displaced truth in reporting demand for Tongass timber," Phelps said. "This study should prove to be very useful as the industry and the timber-dependent communities of Southeast Alaska consider their options for future production and employment."

"The McDowell study shows that global demand for the types of wood products we are capable of producing in Southeast Alaska is virtually unlimited." said Phelps. "The only real restraints on our ability to produce are timely supply and higher operating costs. The cost issues can and are being addressed through industry efficiencies and by developing niche markets with a higher return per board foot. But the supply problem can only be addressed by those who own the timber – that means the federal government can make or break our economy by selling or not selling timber in a timely manner and on a cost-effective basis."

The report includes extensive discussions of global production and consumption of forest products and of the international trade in Tongass-type products. It is illustrated with many tables and graphs demonstrating the interplay between producing and consuming regions, as well as the relative market importance of various products, including engineered products, which could be produced in Alaska if timber supplies were sufficient to sustain mills at levels of peak efficiency.

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