Precut manufacturing of wooden houses with post and beam structure has been becoming more and more popular since the beginning of 1990s. This paper firstly outlines how precut manufacturing has expanded mainly by reviewing literature. Second, using data from interviews with the operators of precut mills, what distribution channel they prefer to choose when they purchase lumber for precut is clarified. Finally, how expansion of precut manufacturing will influence on the traditional lumber distribution system is discussed. House builders, especially of large-scale, actively adopted precut manufacturing into their house construction system after the mid 1980s, because it could reduce construction cost and shorten the term of works as well as keep the quality of the houses they build homogeneous. In the 1990s, medium-scale and small-scale builders began to adopt precut manufacturing and the precut ratio increased. On the other hand, precut mills expanded their scale by equipping full-automatic precut system of high-performance as well as increased in number. Scale expansion made it easy for precut mills to purchase lumber directly from manufacturers or through primary trading companies, which would make it possible to reduce purchasing price and stabilize the transaction in price, quantity and quality. Consequently, simplification of lumber distribution system has been going on. New regulations on house construction was enforced in 2000. It requires that lumber for house construction should have high quality in strength and form stability. This will have influence on the distribution system and industrial structure of domestic lumber.
Through the discussion of community forestry bill, the Tambon Administrative Organizations (TAOs) are expected to be the local government that could reflect the will of people. This paper examines their financial affairs with special attention on their future roles of forest management in eastern region, as promoting reforestation and forest conservation in place of Royal Forest Department (RFD). Based on case studies of two TAOs, following facts are found. Annual revenues consist of about 60 percents of subsidy from the central government, and independent tax revenues, land tax, are very small. This fact means the local government still has been controlled by the central government on financial affairs after institutional decentralization of political power. While data of annual expenditure shows most of it expended on building infrastructure, and educational projects and welfare works have not implemented. Comparing its revenues and the budget of RFD forest reserve office comprehensively, it is apparent that the TAO doesn't have enough funds for natural resources management. It is desirable that TAO should take financial support from RFD.