Factors Influencing Wood Fiber Utilization and Merchantability

Contract 8CA74759 Opinions or conclusions expressed in this report are those of the author and do not necessarily reflect the views of the California Department of Forestry and Fire Protection. Editorial comments may be addressed to the FRRAP staff chief or to the author. Executive Summary Perceptions of wood fiber merchantability are based on existing patterns of utilization. These patterns are dynamic, continually changing with market conditions and the development and adoption of new technological innovations. Patterns of utilization affect estimates of available timber supply which in turn influence policy decisions. The rate of change in wood utilization strategies fluctuates under the influence of a variety of economic and institutional factors. Assessing the forces that drive the invention and adoption of wood utilization technologies lends insight into future utilization trends and related perceptions of wood merchantability. This study provides the basis for understanding the factors affecting trends in wood fiber utilization and merchantability by: 1) describing trends in wood utilization; 2) Identifying factors that affect the invention and adoption of utilization technologies; 3) describing the relationships between these factors; 4) evaluating the impact of changes in utilization on the merchantability of wood fiber, and 5) projecting future trends in wood utilization and wood fiber merchantability. Much of this analysis focused on economically volatile period between 1973 to 1983 in California, the West Coast, and the U.S. in general. The relative merchantability of various types of wood fiber is directly related to patterns of wood utilization, or the extent to which various species, sizes and forms of wood fiber are utilized to produce an end product. The aggregate level of wood utilization at any point in time is defined by: 1) the development state of wood utilization technology; and 2) the extent of diffusion of such technologies within the wood products industry. Changes in wood utilization can be described in two categories: those on the intensive margin, which increase the recoverable value of traditional materials; and those on the extensive margin, which extend merchantability of different species, sizes and shapes of wood fiber by establishing new uses for these types of material. Recent changes on the intensive margin of wood utilization include computer optimized sawing programs, green veneer stitchers, and decreased saw kerfs. Shifts on the extensive margin have included increased utilization of small diameter and poorly formed logs for lumber production; development of a variety of board products that increase …