FORM 10-Q


                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D. C.  20549


                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended March 31, 1997             Commission File Number 0-3922


                            PATRICK INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


          INDIANA                                     35-1057796          
(State or other jurisdiction of                    (I.R.S.  Employer
 incorporated or organization)                      Identification No.)



1800 South 14th Street, Elkhart, IN                     46516             
(Address of principal executive offices)              (ZIP Code)




Registrant's telephone number, including area code     (219) 294-7511     


                                 NONE                                    
Former name, former address and former fiscal year, if changed since last
                              report. 


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes   X     No      

Shares of Common Stock Outstanding as of April 30, 1997:  5,965,266


                            PATRICK INDUSTRIES, INC.


                                      INDEX

                                                           Page No.

PART I:  Financial Information

  Unaudited Condensed Balance Sheets
    March 31, 1997 & December 31, 1996                          3

  Unaudited Condensed Statements of Income
    Three Months Ended March 31, 1997 & 1996,                   4
    
  Unaudited Condensed Statements of Cash Flows
    Three Months Ended March 31, 1997 & 1996                    5

  Notes to Unaudited Condensed Financial Statements             6

  Management's Discussion and Analysis of Financial
    Condition and Results of Operations                         7

PART II:  Other Information                                    10

  Signatures                                                   11

PART I:  FINANCIAL INFORMATION

             PATRICK INDUSTRIES, INC. CONDENSED BALANCE SHEETS



                                                                      (Unaudited)                       (Note)
                                                                      MARCH 31                      DECEMBER 31
                                                                          1997                           1996
         ASSETS
                                                                                              
CURRENT ASSETS
  Cash                                                                $       798,897               $    6,441,482
  Investment in Marketable Securities                                       5,000,000                         ---
  Accounts Receivable, Net                                                 27,602,693                   15,208,671
  Inventories                                                              38,345,279                   39,342,506
  Other                                                                       466,799                      393,520
         Total Current Assets                                         $    72,213,668               $   61,386,179

PROPERTY AND EQUIPMENT, at cost                                       $    68,980,268               $   65,630,289
  Less Accumulated Depreciation                                            27,058,814                   25,870,995
                                                                      $    41,921,454               $   39,759,294

INTANGIBLE AND OTHER ASSETS                                           $     5,402,646               $    5,460,793

         Total Assets                                                 $   119,537,768               $  106,606,266


         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Current Maturities of Long-term Debt                                $     1,138,517               $    1,138,517
  Accounts Payable                                                         21,330,905                   10,545,175
  Accrued Expenses and Taxes Payable                                        4,441,322                    4,056,031
         Total Current Liabilities                                    $    26,910,744               $   15,739,723

LONG-TERM DEBT, NET of CURRENT MATURITIES                             $    26,044,106               $   26,151,527

DEFERRED COMPENSATION OBLIGATIONS                                     $     1,116,607               $    1,069,357

DEFERRED INCOME TAX CREDITS                                           $     1,306,339               $    1,350,000

SHAREHOLDERS' EQUITY
  Common Stock                                                        $    22,154,619               $   22,138,494
  Retained Earnings                                                        42,005,353                   40,157,165
         Total Stockholders' Equity                                   $    64,159,972               $   62,295,659

           Total Liabilities and Stockholders' Equity                 $   119,537,768               $  106,606,266

NOTE:  The balance sheet at December 31, 1996 has been taken from the audited
       financial statements at that date and condensed.

See accompanying notes to Unaudited Condensed Financial Statements.



                            PATRICK INDUSTRIES, INC.
                    UNAUDITED CONDENSED STATEMENTS OF INCOME



                                                                                  THREE MONTHS ENDED
                                                                                        MARCH 31

                                                                           1997                           1996

                                                                                              
NET SALES                                                             $96,935,710                   $93,767,541

COST AND EXPENSES
  Cost of Goods Sold                                                  $84,979,168                   $82,014,145
  Warehouse and Delivery Expenses                                       3,395,562                     3,364,653
  Selling and Administrative Expenses                                   4,853,227                     4,924,656
  Financial Expenses, Net                                                 287,909                       296,881
                                                                      $93,515,866                   $90,600,335


INCOME BEFORE INCOME TAXES                                            $ 3,419,844                   $ 3,167,206

INCOME TAXES                                                            1,333,700                     1,222,500

NET INCOME                                                            $ 2,086,144                   $ 1,944,706
                                                   

EARNINGS PER COMMON SHARE                                             $       .35                   $       .33

WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING                                                            5,964,594                    5,967,157


See accompanying notes to Unaudited Condensed Financial Statements.



                            PATRICK INDUSTRIES, INC.
                        UNAUDITED CONDENSED STATEMENTS OF
                                    CASH FLOW


                                          THREE MONTHS ENDED
                                                                                     MARCH 31
                                                                          1997                          1996
                                                                                              
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income                                                          $  2,086,144                  $  1,944,706
  Adjustment to Reconcile Net Income to Net Cash:
    Depreciation and Amortization                                        1,397,612                     1,061,881
    Other                                                                  (28,353)                         (378)
  Change in Assets and Liabilities:
    Decrease (Increase) in:
          Accounts Receivable                                          (12,394,022)                   (5,868,551)
          Inventories                                                      997,227                     1,601,926
          Other                                                            (73,279)                      167,706
    Increase (Decrease) in:
          Accounts Payable and Accrued Expenses                          9,836,649                     3,756,025
          Income Taxes Payable and Deferred Taxes                        1,313,700                     1,008,568
          Deferred Compensation                                             47,250                        35,749
            Net Cash Provided by (Used in) Operating Activities       $  3,182,928                  $  3,707,632

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital Expenditures                                                $ (3,494,664)                 $ (1,458,961)
  Investment in Marketable Securities                                     (600,000)                        - - -
  Other                                                                     15,139                        23,273
           Net Cash (Used in) Investing Activities                    $ (4,079,525)                 $ (1,435,688)

CASH FLOWS FROM FINANCING ACTIVITIES
  Cash Dividend                                                       $   (237,954)                 $   (238,439)
  Proceeds from Options                                                     16,125                        23,978
  Principal Payments on Debt                                              (107,421)                        - - -     
  Reacquisition of Common Stock                                              - - -                      (356,250)
  Other                                                                    (16,738)                       80,549 
           Net Cash Provided by (Used In) Financing Activities        $   (345,988)                 $   (490,162)

  Increase (Decrease) in Cash and Cash Equivalents                    $ (1,242,585)                 $  1,781,782

CASH and CASH EQUIVALENTS, BEGINNING                                  $  2,041,482                  $  1,349,709

CASH and CASH EQUIVALENTS, ENDING                                     $    798,897                  $  3,131,491

See accompanying notes to Unaudited Condensed Financial Statements.



                            PATRICK INDUSTRIES, INC.
                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1.   In the opinion of the Registrant, the accompanying unaudited condensed
     financial statements contain all adjustments (consisting of only normal
     recurring accruals) necessary to present fairly financial position as of
     March 31, 1997, and December 31, 1996, and the results of operations and
     cash flows for the three months ended March 31, 1997 and 1996.

2.   Certain information and footnote disclosures normally included in financial
     statements prepared in accordance with generally accepted accounting
     principles have been condensed or omitted.  It is suggested that these
     condensed financial statements be read in conjunction with the financial
     statements and notes thereto included in Registrant's December 31, 1996
     audited financial statements.  The results of operations for the three
     months periods ended March 31, 1997 and 1996 are not necessarily indicative
     of the results to be expected for the full year.

3.   The inventories on March 31, 1997 and December 31, 1996 consist of the
     following classes:



                                                            March 31                    December 31
                                                              1997                           1996

                                                                                 
                    Raw Materials                        $22,861,972                   $24,204,345
                    Work in Process                        1,602,117                     1,029,127
                    Finished                               3,444,790                     5,311,075

                       Total Manufactured Goods          $27,908,879                   $30,544,547

                    Distribution Products                 10,436,400                     8,797,959
                       TOTAL INVENTORIES                 $38,345,279                   $39,342,506



     The inventories are stated at the lower of cost, First-In, First-Out (FIFO)
method, or market.

4.   The earnings per common share for the three months ended March 31, 1997 and
     1996 have been computed based on the weighted average number of shares of
     common stock outstanding of 5,964,594 and 5,967,157 respectively. 

     In February 1997, the Financial Accounting Standards Board issued Statement
     of Financial Accounting Standards (SFAS) No. 128, "Earnings per Share." 
     SFAS No. 128 requires the presentation of both basic earnings per share and
     diluted earnings per share.  Basic earnings per share will be computed by
     dividing net income by the weighted-average number of common shares
     outstanding.  SFAS No. 128 will be effective for the Company's 1997 annual
     report.  If SFAS No. 128 had been in effect during the first quarter of
     1997, there would have been no change in basic earnings per share.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.

GENERAL

     The Registrant's business has shown significant revenue growth since 1991,
with annual sales increasing from $143 million to $403 million in five years. 
This revenue growth showed lower increases in the fourth quarter of 1996 and the
first quarter of 1997 than had been recorded in prior years.

     The following table sets forth the percentage relationship to net sales of
certain items in the Registrant's Statements of Operations:




                                                                 Quarterly Ended               
                                                                      March 31,      
                                                           1997       1996      1995 

                                                                        
         Net Sales                                       100.0%       100.0%     100.0%  
         Cost of Sales                                     87.7        87.5       86.3
         Gross Profit                                      12.3        12.5       13.7
         Warehouse and Delivery                             3.5         3.6        3.7
         Selling, General & Administrative                  5.0         5.2        5.3
         Operating Income                                   3.8         3.7        4.7
         Net Income                                         2.2         2.1        2.7



RESULTS OF OPERATIONS

     Quarter Ended March 31, 1997 Compared to Quarter Ended March 31, 1996
     Net Sales.  Net sales increased by $3.1 million, or 3.4%, from $93.8
million in the quarter ended March 31, 1996 to $96.9 million in the quarter
ended March 31, 1997.  This sales increase was attributable to higher sales
penetration in the Industrial and Recreational Vehicle industries.  The
Registrant's sales are 66% to Manufactured Housing, 16% to Recreational
Vehicles, and 18% to other industrial industries.

     Gross Profit.  Gross Profit increased by approximately $200,000, or 1.7%,
from $11.7 million in the first quarter of 1996, to $11.9 million in the same
1997 quarter.  As a percentage of net sales, gross profit decreased from 12.5%
in the first quarter of 1996 to 12.3% in 1997.  This decrease in gross profit
was due to highly competitive market pricing of most of Registrant's products in
the first quarter of 1997.

     Warehouse and Delivery Expenses.  Warehouse and delivery expenses increased
approximately $31,000 or 0.9%, remaining at $3.4 million for both first
quarters.  As a percentage of net sales, warehouse and delivery expenses
decreased from 3.6% in the 1996 first quarter to 3.5% in 1997.

     Selling, General and Administrative Expenses.  Selling, general and
administrative expenses decreased by approximately $71,000, or 1.5%, from $4.9
million in 1996, to $4.8 million in 1997.  As a percentage of net sales,
selling, general and administrative expenses decreased from 5.2% in 1996 to 5.0%
in 1997.

     Operating Income.  Operating income increased by approximately $243,000
because of the increased gross profit and the overall reduction of operating
expenses remaining about the same as in 1996.  As a percentage of net sales,
operating income increased from 3.7% in 1996 to 3.8% in the 1997 first quarter.

     Financial Expense, Net.  Interest expense decreased by approximately $9,000
in 1997 from 297,000 in 1996 to $288,000 in 1997.  The Registrant's borrowing
level was slightly lower in the 1997 first quarter and more funds were invested
than in 1996.

     Net Income.  Net income increased by approximately $141,000 from $1.9
million in the 1996 first quarter to $2.0 million in 1997.  This increase is
primarily attributable to the factors described above.


     Quarter Ended March 31, 1996 Compared to Quarter Ended March 31, 1995
     Net Sales.  Net sales increased by $6.7 million, or 7.7%, from $87.0
million for the quarter ended March 31, 1995, to $93.8 million in the quarter
ended March 31, 1996.  This sales increase was attributable to 7% increases in
units shipped by the Manufactured Housing industry, which represents
approximately 68% of the Registrant's sales.  The Registrant's sales to the
Recreational Vehicle industry were down as a percent of total company sales as a
result of a slight decline in units produced in that industry, which represents
approximately 16% of Registrant's sales.

     Gross Profit.  Gross profit decreased by approximately $217,000, or 1.8%,
from $11.9 million in the first quarter of 1995, to $11.7 million in the same
1996 quarter.  As a percentage of net sales, gross profit decreased from 13.7%
in first quarter 1995 to 12.5% in 1996.  This decrease in gross profit was the
result of lower volume and higher inventory costs in the Registrant's aluminum
extrusion division and lower volume, moving, and start-up costs at the new
Oregon facility.  The Registrant also experienced competitive market pricing of
certain products in the first quarter of 1996.

     Warehouse and Delivery Expenses.  Warehouse and delivery expenses increased
approximately $114,000, or 3.5%, from $3.3 million in 1995, to $3.4 million in
the first quarter of 1996.  As a percentage of net sales, warehouse and delivery
expenses decreased from 3.7% in 1995 to 3.6% in the 1996 first quarter.

     Selling, General and Administrative Expenses.  Selling, general and
administrative expenses increased by approximately $348,000, or 7.6%, from $4.5
million in 1995, to $4.9 million in 1996.  As a percentage of net sales,
selling, general and administrative expenses decreased from 5.3% in 1995 to 5.2%
in 1996.

     Operating Income.  Operating income decreased by approximately $680,000
because of the reduced gross profit and increases in warehouse and delivery, and
selling, general and administrative expenses.  As a percentage of sales,
operating income decreased from 4.7% in 1995 to 3.7% in the 1996 first quarter.

     Financial Expense, Net.  Interest expense decreased by approximately
$51,000 from $348,000 in 1995 to $297,000 in the first quarter of 1996.  The
Registrant's borrowing levels in the 1996 period were slightly higher but at
lower rates.

     Net Income.  Net income decreased by approximately $371,000 from $2.3
million in 1995 to $1.9 million in 1996 for the first quarter ended March 31. 
This decrease is attributable to the factors described above.



LIQUIDITY AND CAPITAL RESOURCES

     The Registrant's primary capital requirements are to meet working capital
needs, support its capital expenditure plans and meet debt service requirements.


     The Registrant, in September, 1995, issued to an insurance company in a
private placement $18,000,000 of senior unsecured notes.  The ten year notes
bear interest at 6.82%, with semi-annual interest payments beginning in 1996 and
seven annual principal repayments beginning September 15, 1999.  These funds
were used to reduce existing bank debt and for working capital needs.

     The Registrant had a bank financing agreement (the Credit Agreement) with
NBD Bank, N.A. for a term loan and a revolver loan.  In September, 1995 with
funds from the insurance company private placement, the Registrant prepaid the
term loan in full and paid the revolver outstanding balance.  The Revolving
Credit Agreement was amended on February 13, 1997 and provides revolver loan
availability of $10,000,000 with maturity in three years.  Pursuant to the
Credit Agreement, the Registrant is required to maintain certain financial
ratios, all of which are currently complied with.

     The Registrant believes that cash generated from operations and borrowings
under its credit agreements will be sufficient to fund its working capital
requirements and capital expenditures as currently contemplated.



SEASONALITY

     Manufacturing operations in the Manufactured Housing and Recreational
Vehicle industries historically have been seasonal and are generally at the
highest levels when the climate is temperate.  Accordingly, the Registrant's
sales and profits are generally highest in the second and third quarters.



INFLATION

     The Registrant does not believe that inflation had a material effect on
results of operations for the periods presented.


     PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security Holders

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits

             10 Credit Agreement dated as of February 2, 1997 among the
                Registrant and NBD Bank

             27 Financial Data Schedule

        (b)  There were no Reports filed on Form 8-K


                                   SIGNATURES

       Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                           PATRICK INDUSTRIES, INC.      
                                           (Registrant)





Date          May 12, 1997                  /S/Mervin D. Lung     
                 
                                           Mervin D. Lung
                                           (Chairman of the Board)





Date          May 12, 1997                 /S/David D. Lung
                     
                                           David D. Lung
                                           (President)






Date          May 12, 1997                  /S/Keith V. Kankel                  
                                           Keith V. Kankel
                                           (Vice President Finance)
                                           (Principal Accounting Officer)