An ‘Outside’ Look At Forest Products Research

Since World War II, research has grown very rapidly, partly because it can be the source of new industry or new or continuing life for old industry, and partly because management feels it is the fashion and a necessary activity to satisfy the stockholders. This growth has drawn heavily on the available talent. Rising costs will probably restrict future rate of growth of research. Research people are in a favorable position today. In research the ratio of success to failure is about one in nine. Fortunately, the one more than pays for the nine. This may not continue. Skill at selecting the projects with potential must develop. Areas of research which seem to have great potential are 1) waste reduction and residue utilization, 2) processes for utilizing Douglas-fir for pulp, 3) plywood surface upgrading, 4) end-gluing and gluing in general, and 5) tree quality and production. Statistics in 1958 showed R & D expenditures at $90 per employee in the paper industry, $22 in the lumber and wood products sector. For all industries in the U.S. the average was $515 per employee. In terms of value added by manufacture, paper was 0.9, lumber 0.4, and all industry 5.8 cents per dollar. In the State of Washington the forest industries raised production 26 percent and reduced employment 14 percent for a 46 percent gain in worker productivity during the period 1940-1960. This is a compound rate of 1.9 percent per year and compares favorably with all industry. During this period lumber production actually declined 30 percent, while paper and pulp production doubled. The forest industries are facing heavy competition and have been losing ground. Research is an important weapon for them to employ to help reverse this trend.

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