West Fraser offered a range of outlooks in its second quarter earnings report. It noted that over the medium term, improvements in housing affordability supported by U.S. government policy changes and the expected normalization of inflation and interest rates, a large cohort entering the typical homebuying stage, and the advanced age of the U.S. housing stock (with a median home age of approximately 44 years) are expected to support new home construction and repair and renovation activity that generates lumber, plywood and OSB demand. And that over the longer term, growing market penetration of mass timber in industrial and commercial applications is also expected to become a more significant source of demand growth for wood building products in North America.

The company pointed to a seasonally adjusted annualized rate of U.S. housing starts of 1.43 million units in June 2026, with permits issued for 1.37 million units, according to the U.S. Census Bureau. However, it noted near-term uncertainties for new home construction and repair and renovation spending, owing in large part to weak consumer confidence and the level of mortgage rates and housing affordability. But it also noted unemployment remains relatively low in the U.S. Further, the U.S. central bank has cut its key lending rate a total of 175 bps (basis points) since September 2024. 

“While recent rate trends are directionally supportive for the broader housing industry, competing forces continue to create uncertainty around the near-term path of interest rates and rates of inflation. U.S. employment growth has shown signs of slowing, while the conflict in the Middle East and the potential inflationary effects of tariff and other government policies may continue to exert upward pressure on inflation and interest rates. Given these developments, demand for our wood building products may continue to be challenged and even decline over the near term should the broader economy and employment slow or the trend in interest and mortgage rates negatively impact consumer sentiment and housing affordability,” the company stated.

Meanwhile, West Fraser anticipates continued improvement in industry demand across Europe and the U.K. in the near term. In the longer term, it continues to expect demand for its European products to grow as use of OSB as an alternative to plywood and timber framing as an alternative to brick and block construction for new home construction expands. An aging housing stock is also expected to drive sustained repair and renovation spending, which will continue to support demand for wood building products.

“That said, ongoing geopolitical developments, including the inflationary effect of the conflict in the Middle East, may adversely impact near-term demand for our EWP products in the region. Despite these risk factors, we are confident that we will be able to navigate demand markets and capitalize on the long-term growth opportunities ahead.”

In its North America EWP segment, West Fraser expects somewhat softer demand for its OSB products in 2026, and acknowledged risks to its demand forecasts given the near-term uncertainties. In light of these factors as well as its High Level, Alberta OSB mill curtailment that was completed in the second quarter, West Fraser anticipates reiterating 2026 North American OSB target shipments of 5.9 to 6.3 billion SF.

In its Europe EWP segment, West Fraser expects 2026 demand for its MDF, particleboard, and OSB products to remain stable or show modest improvement compared to 2025 levels. It is forecasting 2026 OSB shipments in the range of 1.0 to 1.25 billion SF.

West Fraser also noted that global events during the first quarter of 2026 contributed to an increase in oilbased input costs, including fuels, chemicals and waxes. Resin and wax costs increased by approximately $13 million in the second quarter compared to the first quarter across all of its divisions due to these factors, notiing that resin and wax costs generally move in the same direction as crude oil prices.

“We estimate that a $10 per barrel change in crude oil prices impacts annual resin and wax costs by approximately $15 million, with other factors held constant,” In addition, transportation costs, particularly in the U.S. South, also increased due to an increase in oil-based input costs as well as a reduction in transportation labor availability. “Ongoing geopolitical uncertainty in the Middle East and broader macroeconomic conditions create uncertainty regarding the duration and magnitude of these impacts.”

Based on its current outlook and assuming stable market demand conditions and no further extension of lead times for ongoing or planned projects, West Fraser plans capital expenditures for 2026 to remain within the $300 million to $350 million range.

Latvijas Finieris continues to proactively evaluate development and investment opportunities that support the company’s sustainable growth and long-term competitiveness. Among the projects currently under consideration is the potential development of a new wood-based panel manufacturing plant in Latvia’s Latgale region.

The project is presently undergoing an in-depth feasibility assessment, while discussions are taking place with potential stakeholders. The evaluation includes a thorough analysis of the project’s economic viability, potential risks, financing opportunities, and its long-term impact on the company’s development, the regional economy, and Latvia’s economy as a whole.

“Latvijas Finieris is assessing the possibility of constructing a new wood-based panel manufacturing plant in Latgale, which would make a significant contribution to the regional economy, as well as to national security and sustainability. However, before a decision can be made, a number of factors still need to be thoroughly evaluated. The most important of these is the potential support from the Latvian government and the European Union to accelerate the implementation of such a capital-intensive project. What makes this project unique is that, in addition to generating economic benefits of up to 0.5% of Latvia’s GDP, it also has the potential to reduce national greenhouse gas emissions by approximately 6%,” comments Jānis Ciems, Chairman of the Management Board of Latvijas Finieris.

Latvijas Finieris will provide further information on the project’s development once the feasibility assessment has been completed and the relevant decisions have been made.

Under the expanded agreement, Boise Cascade will distribute James Hardie’s comprehensive portfolio of products through its nationwide network of distribution centers. As the two companies fully align their focus and resources, Boise Cascade will transition away from distributing competitive siding, trim, and exterior moulding products. James Hardie has designated Boise Cascade its sole nationwide distribution partner and will consolidate its distribution network across all regional markets.

Boise Cascade’s Building Materials Distribution division is one of the largest wholesale distributors of building products in North America. James Hardie is the North American leader in fiber cement siding and exterior design solutions.

A new U.S. Forest Service wood innovation grant will enable Dovetail Partners, MassTimber@MSU (Michigan State University), and Team Pennsylvania to accelerate the next phase of the Great Lakes Mass Timber Collaborative (GLMTC). The multi‑state effort advances mass timber markets, manufacturing capacity, and forest‑health‑aligned wood products across the region. The GLMTC, founded in 2024 by MassTimber@MSU, brings together leaders from Minnesota, Wisconsin, Illinois, Indiana, Michigan, Ohio, Pennsylvania, and New York to build a coordinated regional mass timber economy. More than 100 participants convened in April 2026 to mark the release of the GLMTC’s Regional Vision, outlining priorities for supply‑chain development, manufacturing expansion, workforce training, and project‑level technical assistance. 

“The Regional Vision reflects the knowledge, goals, and analysis of people across the mass timber chain—from forests to manufacture to research to buildings—in all eight Great Lakes states,” says Sandra Lupien, director, MassTimber@MSU. “This wood innovation grant enables us to start implementing that vision on the ground by identifying priorities in forests and matching them with opportunities in products and construction.” Lupien founded, and will continue to lead, the Collaborative into its next phase. 

As the Collaborative’s fiscal sponsor, Dovetail Partners provides administrative and financial oversight, as well as staff expertise, to support implementation of this regional strategy. 

The U.S. Endowment for Forestry and Communities is strengthening the Great Lakes region’s mass timber ecosystem through a $300,000 matching commitment that complements the $300,000 grant. Together, this $600,000 investment enables Dovetail, MassTimber@MSU, Team Pennsylvania, and GLMTC partners to advance coordinated supply-chain mapping, provide technical assistance for emerging mass timber projects, assess manufacturing expansion opportunities—including hardwood mass timber products—and develop shared tools and case studies that reduce barriers to adoption. These efforts position the Great Lakes region to lead a national transformation in sustainable construction and forest-aligned economic development.

To read the complete Regional Vision from GLMTC, visit canr.msu.edu.