National demands for particleboard panel products and raw materials supply are projected for the 1970's. Demand for particleboard (which includes fiberboard and structural particleboard) is expected to continue rapid growth through the decade. new plant capacity will use dry mill residues wherever possible. Several new plants are expected in the South, and three or four each in California, the Pacific Northwest, and the Northern Rocky Mountains. In the last of the decade, expanding production will turn to use of forest residues, which will shift plant expansion toward the major markets and away from the Northwest. Analysis of production costs indicate that in the Northern Rocky Mountains plants utilizing forest residues cannot profitably compete with plants taht utilize mill residues until the existing mill residues are exhausted.