Trends in demand for lumber and panel products in packaging and materials handling are examined both for the past and the future. Effects of recent technological developments and innovations such as molded particleboard pallets, medium-density fiberwood pallets, and plywood pallets, are analyzed. Increased use of pallets is seen as the main reason for the expected increase in wood products consumption. Use of the slip-sheet is considered competition for the wood pallet. Projections are made for lumber and board use in the 1980's.