Southern Pine Economy’s Response Capability

The capacity of the southern pine industry to respond to short term changes in economic conditions, such as a substantial increase in demand for southern pine products in the next year, is examined. The major block to rapid response to exceptional market demands is the shortage of management talent needed to expand the logging industry. Inelasticities in stumpage supplies also tend to raise prices sharply. Output per unit of timber processed can be increased somewhat by altering the product mix within a plant. Intense demand does facilitate market acceptance changes in product specifications, particularly when products have been overdesigned.

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