The combined Canadian and U.S. lumber industries shrunk by about 30 percent as a result of the subprime mortgage crisis that, in 2008, sparked the U.S.'s worst recession since the Great Depression, according to a summary in the 2012 Hardwood Directory released by Charlotte, N.C.-based Hardwood Publishing.
The combined Canadian and U.S. lumber industries shrunk by about 30 percent as a result of the subprime mortgage crisis that, in 2008, sparked the U.S.'s worst recession since the Great Depression, according to a summary in the 2012 Hardwood Directory released by Charlotte, N.C.-based Hardwood Publishing.
"Sharply lower sales forced businesses throughout the hardwood supply chain to downsize operations, reduce employment, curb non-essential spending and delay capital investments," wrote Hardwood Publishing's George Barrett. "Hundreds of companies did not survive, and those that remain are still trying to recover. The hardwood industry is much smaller today than it was 5 years ago."
Lumber production bottomed out at 6.7 billion board feet in 2009, edged up to 7.0 billion board feet in 2010, and increased to 7.5 billion board feet in 2011. For 2012, Hardwood Publishing expects demand of 8.0 billion board feet. Today, most sawmills are operating "well below" capacity and, after the economy improves significantly, will be able to add operating hours with no additional manpower or facility upgrades, Barrett wrote.
According to Barrett, the U.S. economy started showing signs of positive economic momentum, including good jobs reports and the expectation that the country will create 1.7 million jobs, in 2012. Meanwhile, home starts and new-home sales figures improved in the latter part of 2011.
"Steady sales of existing homes and expected gains in new home construction in 2012 will lead to slightly higher demand for cabinets, ?ooring, furniture, molding and stairs …" Barrett wrote.
