Demand For Engineered Wood Products To Grow Through 2020

Demand For Engineered Wood Products To Grow Through 2020

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Engineered wood product output will grow between 25% and 33% by 2020, according to the Fall 2015 Forecast by APA – The Engineered Wood Association. That should bode well for LBM dealers as the housing market continues its gradual recovery.

APA’s 2015-2020 Market Outlook for structural panels and engineered wood products forecasts that demand for North American-made structural panels will increase 21% by 2020, from 31.5 billion square feet to 38 billion, largely in response the increase in housing starts to 1.5 million units by the end of the decade.

APA’s forecast for an uptick in demand for structural panels and engineered wood doesn’t surprise J.D. Saunders, the 2014-2015 chairman of the National Lumber and Building Material Dealers Association (NLBMDA) and vice president of Economy Lumber in Campbell, Calif. “We’ve already experienced an increase in demand, and part of that is attributable to the recovery of the housing market,” he says.

In fact, APA’s Market Outlook notes that although the U.S. homeownership rate is expected to trend lower through 2020 as interest rates rise, the improving economy could push household growth as high as 1.3 million per year over the next three to five years.

Several factors are dampening the potential for stronger growth in homebuilding. Young would-be homeowners are delaying marriage as they pay off historically high levels of student debt and their projected incomes are unlikely to keep pace with the rise in mortgage payments as home prices and interest rates rise. In addition, first-time home-buyers continue to struggle to meet strict mortgage lending standards to qualify for home loans. Many of the households they form in the near future are likely to be living in rented apartments, as described in the APA report.

From LBM Journal: lbmjournal.com.

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Stable 2016 Outlook For Global Paper And Forest Products Sector

Increasing housing starts and higher consumer spending will drive anticipated operating income growth for the global paper and forest products industry of 1%-3% in 2016, underpinning the current stable outlook for the sector for the next 12 months, says Moody’s Investors Service in a report published today. However, the outlook for the Printing and Writing Paper segment is negative as digital alternatives continue to curb paper demand.

“Our outlook for the global paper and forest products sector over the next year remains within our stable range as increasing home construction and economic growth drive wood product, packaging and market pulp earnings growth in the low single digits in 2016,” says Ed Sustar, a Moody’s Vice President — Senior Credit Officer and author of the report.

The outlook for the Paper Packaging and Tissue segment will be stable with operating earnings forecast to grow by 0%-4% on the back of increased (1) packaging demand, driven by modest economic uptick and stable food consumption; and (2) tissue demand, driven by population growth and improving hygiene standards.

Expected improvements to US housing starts will likely prop up end-market demand for timber, lumber, oriented strand board and engineered wood products in 2016, which will in turn support the stable outlook for the Wood Products/Timberland segment. However, lower Chinese infrastructure spending is pressuring North American log and lumber exports. Operating earnings in this sector are expected to grow by between 0%-4% in 2016.

Operating earnings growth for 2016 in the 1%-3% range will support the Market Pulp segment’s stable outlook. Prices across most grades (hardwood, softwood, dissolving pulp) will remain flat or decrease as capacity increases outpace demand. As additional pulp capacity comes on-line, inventory management across the fragmented global pulp industry will remain critical to balancing supply and demand.

From Moody’s: https://www.moodys.com/research/Moodys-Stable-2016-outlook-for-global-paper-and-forest-products–PR_340351

PELICE Will Address Greenfield Projects

PELICE Will Address Greenfield Projects

Written By: Rich Donnell

Organizers of the 2016 Panel & Engineered Lumber International Conference & Expo (PELICE) have announced several keynoters from the structural panel segment of the industry. Keynoters from the non-structural composite side will be announced soon.

The fifth biennial PELICE will be held April 7-8, 2016 in the Grand Ballroom North of the Omni Hotel at CNN Center in Atlanta, Georgia, USA. Hosted by Panel World magazine, PELICE in 2014 attracted 420 industry professionals who enjoyed 10 keynote presentations as well as forecasts and technical presentations delivered by 45 industry experts, supported by 75 equipment and technology companies that exhibited in the Ballroom.

PELICE will be immediately preceded by the fourth biennial Wood Energy Conference & Expo on April 5-6.

“The 2014 PELICE was refreshing because it was the first one going back to 2008 where all the talk wasn’t about the recession,” comments Rich Donnell, co-chairman of PELICE and editor-in-chief of Panel World magazine. “There was a lot of enthusiasm about projects-in-the-making. I believe that enthusiasm will continue into PELICE 2016 as housing and remodeling markets continue to climb. There will also be a definite buzz in the air at PELICE because it will be held right in the middle of the primary season for the 2016 presidential election.”

Donnell also notes that since the last PELICE there have been a number of production technology developments that will be addressed at PELICE 2016, as well as developments in engineered wood products, such as cross laminated timber, and in composite panels.

“We’ve rounded up a great lineup of keynote speakers from the structural segment of the industry,” Donnell adds. “We’ll now turn our attention to the non-structural side for additional keynoters.”

Donnell says two keynoters—Jonathan Martin, chairman & CEO of Louisiana-based Martin Companies, L.L.C.; and Steve Swanson, president and CEO of Oregon-based Swanson Group, will speak under the heading: “If I Could Build a New Plant In 2016, Here’s What I Would Do.”

Martin will address the development of Martco’s new oriented strandboard plant being built in Corrigan, Texas. The company currently operates an OSB plant in Oakdale, La., which it built and started up in 2006. Its history with OSB dates back to 1982 when it built and started up a plant in Le Moyen, La. It also operates a softwood plywood plant in Chopin, La., another greenfield project.

Martin
Swanson will address the new plywood and veneer facility Swanson Group is building in Springfield, Ore. to replace the plant that a fire destroyed in July 2014. Swanson Group operates veneer, plywood and lumber operations in Glendale and Roseburg, Ore. Swanson Group also purchased Olympic Panel Products in Shelton, Wash. in March and is relocating those assets to the new Springfield facility.

Swanson
Also on tap is Kurt Liebich, CEO of RedBuilt and New Wood Resources, both companies part of Atlas Holdings. RedBuilt manufactures I-joists, open web trusses and LVL at several manufacturing plants primarily in the Western U.S.

Liebich joined RedBuilt’s predecessor, Trus Joist, in 1994 and served in numerous senior management roles. He remained with the company when Weyerhaeuser acquired it in 1999, and was appointed vice president of Trus Joist and later VP of marketing for Weyerhaeuser’s iLevel division. When Atlas Holdings acquired the former commercial division of Trus Joist from Weyerhaeuser in 2009, it appointed Liebich as president and CEO of the company, which they named RedBuilt.

Atlas Holdings also appointed Liebich as president and CEO of Wood Resources LLC, which later sold with two plywood mills to Boise Cascade. Atlas subsequently formed New Wood Resources with Liebich as CEO. New Wood Resources operates the long-running plywood plant in Omak, Wash., and is also building a new plywood plant in Louisville, Miss., known as Winston Plywood & Veneer.

Liebich
Brian Carlson, president of OSB manufacturer Huber Engineered Woods LLC, will also join the keynoters lineup. Huber operates five OSB plants. Carlson has worked at Huber for 20 years and in various capacities prior to his promotion to president, including as product and field sales director, VP of sales & marketing and overseeing business development and strategy.

Carlson
The remaining keynoters as well as the complete agenda of speakers and technical session topics will be released in September.

As of early August, numerous equipment and technology companies had already signed on as exhibitor sponsors of PELICE. Leading the way is Babcock & Wilcox MEGTEC, which is a Gold sponsor not only for PELICE, but for the preceding Wood Energy Conference & Expo.

Early Silver sponsor exhibitors for PELICE include Baumer Inspection, Biele Wood, Brunette, Cogent Industrial Technologies, Con-Vey, Dieffenbacher, Electronic Wood Systems, Evergreen Engineering, GP Chemicals, Globe Machine Manufacturing, Hexion, Imal-Pal, M-E-C, Merritt Machinery/Meinan Machinery, Mid-South Engineering, MoistTech, Raute, Sweed Machinery, TSI/ Sigma Thermal, USNR, Venango Machine, Veneer Services, Westmill Industries, Willamette Valley, as well as Bronze sponsors Ventek and GreCon.  (Brunette, Cogent, Con-Vey, Dieffenbacher, Evergreen Engineering, GreCon, Imal-Pal, M-E-C, Mid-South Engineering, MoistTech, TSI-Sigma Thermal, Veneer Services/Bio­mass Engineering & Equipment will also join B&W MEG­TEC as exhibitors in the Wood Energy Conference & Expo.)

For more information visit https://pelice-expo.com/.

Developer Breaks Ground On All-Timber Office Building In Minnesota

Developer Hines has broken ground in Minneapolis’ North Loop on its all-timber office building, the first commercial property in the U.S. to use an engineered wood material for its interior and structure.

The Houston-based real estate company announced Monday the start of construction on the 220,000-square-foot, seven-story office building (being called T3 for its emphasis on timber, transit and technology) that has garnered national attention.

Hines hired Vancouver-based Michael Green Architecture, in conjunction with DLR Group, to design the building. Michael Green is among the world’s foremost experts in heavy timber construction and an advocate for timber as a sustainable building material. While old-growth timber — the kind needed to support the weight of a tall building — is unavailable for construction today, an engineering process that presses smaller pieces of wood together can re-create the load capacity of heavy timber.

Following the initial announcement in November, the Wall Street Journal showcased the project, saying it will be the tallest modern all-timber structure in the U.S. once completed. Hines said Monday that it expects the building to open in early fall 2016.

From the Star Tribune: https://www.startribune.com/developer-breaks-ground-on-modern-all-timber-office-building-in-north-loop-minneapolis/318684551/?utm_source=WIT073115&utm_medium=Email&utm_campaign=WeekInTrees

Uniboard Invests $7 Million In MDF Production

Uniboard is proud to announce an investment of over $7 million at its 91-employee Mont-Laurier MDF plant. Uniboard says the investment will increase the productivity of the plant through what it says is the use of a revolutionary new wood fiber mat-preheating technology.

This process innovation is a first for North America and will allow Uniboard to better service our customer base in Canada and the United States. The Mont-Laurier MDF/HDF plant produces Excel+, Excel, and NU Green/PMDI-NAF and HDF panel products. Uniboard’s overall network of particleboard, MDF and thermally fused laminate facilities are at locations in Sayabec, Val-d’Or, Laval and Mont-Laurier, Quebec.

Overall Uniboard has an installed capacity of over 640 million square feet of raw particleboard, high-density and medium-density fiberboard, of which over 50% is converted into value-added thermally fused laminate and laminate flooring products. Uniboard’s mills in Val-d’Or, Sayabec, Mont-Laurier and Laval employ over 800 people. Its products are sold to retailers, distributors and finished goods manufacturers, which cater to the kitchen cabinet, furniture, office, home renovation and construction industries, as well as to the floor covering industry.

Since its original start-up as Panfibre in 1987,  Mont-Laurier’s capacity has been expanded in multiple steps. In 2012, Uniboard was acquired by the owners of Kaycan Ltd., a leading manufacturer of building products in North America, with its head office located in Montreal, Quebec. Kaycan Ltd. and its  group of companies offers a full range of products for both the exterior and interior of the home, including vinyl, aluminum and engineered wood siding products, PVC windows & patio doors, particleboard, MDF, thermally fused laminate and laminate flooring.

From Woodworking Network: https://www.woodworkingnetwork.com/wood/panel-supply/uniboard-invests-7-million-innovative-mdf-production?ss=news,news,woodworking_industry_news,news,almanac_market_data,news