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In an earlier publication on California`s forest-zone hardwoods, 22 reasons were offered for the failure of a sustained hardwood industry to develop. This report presents knowledge developed over the past 18 years on each of these reasons. Progress is reflected in society`s shift from a negative to a positive attitude towards the hardwood industry, better estimates of the inventory base and resource values, the advent of small portable sawmills, better lumber drying schedules and equipment, and recognizing the need to furnish promotional material to architects, wholesalers, retailers, and consumers. Hardwood management in the near future will reflect a broadened emphasis on wildlife, water, esthetics, and wood.

California's hardwood resource: status of the industry and an ecosystem management perspective