Will the Wood Products Industry Rebound in 2010?

Posted by Rumin Mann
January 29th, 2010

According to the following articles, there is a “flicker of hope” for a rebound in Canada’s Wood Products Industry.

In ‘A flicker of hope for growth in Canada’s troubled wood products industry,’ Sunny Freeman writes:

After 13 consecutive quarters of declining production, Canada’s troubled wood products industry saw its first sign of growth in the third quarter of 2009 and appears to be on the mend. A Canadian Industrial Outlook report issued Thursday forecasts that while prices will remain weak, production is expected to increase by almost 10 per cent and the industry will return to profitability in 2010. “After years plagued by bad news, the wood products industry is on the road to recovery,” associate director of Canadian Industrial Outlook Michael Burt said. Read more

According to the Business Journal Article, ‘Forecast: Wood product industry to return to the black in 2010: Conference Board of Canada’:

The worst of a U.S. housing crisis that has crippled Canadian lumber producers has come and gone, according to Fredericton broker Mike Jennings. The president and co-founder of Brunswick Valley Lumber Inc. has watched prices for the two-by-fours and other lumber he sells into Canadian, U.S. and international markets climb in 2009. “Lumber prices over the last 12 months, understanding there have been ups and downs in those months, are up 25 per cent,” said Jennings, who runs an office with six salesmen in the province’s capital, managing satellite operations in Quebec, Pennsylvania and Florida and distribution centres across the continent. The company buys lumber from about 120 mills and sells the product into largely U.S. markets, which account for 70 per cent of its business. Read more

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