If Virus Stagnates, Look For Rebound

by Jacqlyn Kirkland | Mar 25, 2020 | News

If Virus Stagnates, Look For Rebound

Following a three-month skid, housing starts should gradually ramp up beginning this summer, and reach where they were pre-virus later in this year and early next year, according to comments and data from officials at Forest Economic Advisors (FEA) during a webinar hosted by FEA March 24 on the impact of the virus on the national economy and the building products industry.

U.S. housing starts could drop by 50% to an 800,000 annualized pace from the 1.6 million pace they were on before the onslaught of COVID-19, according to FEA principal Brendan Lowney. But Lowney added that “the boom has been delayed, not denied. The underlying fundamentals are strong over the next several years.”

Lowney said ultimately the U.S. housing industry will out-perform the wider economy due to favorable demographics, solid family financial health with regard to debt load and the fact that the U.S. has been “dramatically underbuilding” and too-slowly transitioning from old homes to new ones, all which were factors starting to contribute to the housing hike earlier in the year.

The degree of FEA’s forecasted dip, while severe, still sees twice the number of starts than occurred at the bottom of the Great Recession. Lowney said the depth of the immediate decline, in addition to obvious business disruptions, depends on if construction is allowed to continue during the virus attack, adding that the federal government appears to be in favor of continued construction, though individual states can rule further on it. Likewise the federal government has recognized the wood products industry as an “essential critical infrastructure workforce” in the nation’s response to the COVID-19 pandemic.

Lowney said FEA’s forecast, while trending positive after a few months, does not show the immediate and dramatic V-shape rebound depicted in at least one other forecast.

He said FEA’s decline and upswing forecast hinges on the federal government’s fiscal response, which appears to be appropriate so far, and of course getting the virus under control.

In the meantime, according to FEA, unemployment could reach 16% in May from nearly non-existent, with the food service, recreation, accommodation and retail industries taking huge hits. GDP could experience a 12.6% decline in the second quarter, according to FEA, before turning positive in the third quarter and becoming more robust in the final quarter of the year and early next year.

Are we in a recession? “Technically, no; in reality, hell yes,” Lowney said, adding that the keys are duration—keeping it short—and government assistance to the people—substantial and quick.

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Winston Plywood & Veneer Hosts Ribbon-Cutting In Mississippi

by Web Editor | Apr 7, 2017 | News

Winston Plywood & Veneer Hosts Ribbon-Cutting In Mississippi

Joined by federal, state and local leaders, company associates and members of the community, Winston Plywood & Veneer hosted a ribbon-cutting ceremony at its new plywood mill in Louisville, Miss. in April 2017. The location was once home to a shuttered mill that was destroyed when an F4 tornado struck three years ago. Today in its place stands a state-of-the-art plywood facility that employs more than 300 and is expected to generate tens of millions in annual economic activity for the region.

“Today is a great day for all of us who work at WP&V,” commented Winton Plywood & Veneer President Jon Pierce. “We could not be more thankful for the collaboration and support we’ve had from Mayor Hill, Governor Bryant, the Mississippi Development Authority and those across our community. Everyone has stood with us as we worked together to make this mill a reality.”

“The grand opening of Winston Plywood & Veneer is a momentous occasion for this community and for our great State, showing what can be done when business partners with government at all levels to create jobs and spur economic growth,” Gov. Bryant said. “I am thrilled to be back here, standing with these newly hired workers and this company, to celebrate the official launch of this outstanding manufacturing business in Mississippi.”

“When we broke ground here two years ago, in the aftermath of a devastating storm, we said we would stay the course until we delivered and opened the finest plywood mill in North America. I am very proud to say today that we have kept that commitment, and that the future for this business is bright,” said Andrew Bursky, Chairman and Co-Founder of Atlas Holdings LLC, the parent company of New Wood Resources LLC. Winston Plywood & Veneer is an operating company of New Wood Resources.

“This occasion is to celebrate hard work, partnerships, community, and most of all hope. Our community has experienced the great recession, plant closures, and a devastating natural disaster in recent years. Winston Plywood & Veneer’s commitment after the storm forged a storybook partnership, giving hope to a community in need,” said Louisville Mayor Will Hill.

Winston Plywood & Veneer is well positioned for sustained success in the marketplace. The company’s leadership team collectively brings nearly a century of direct industry experience and expertise; overall, the team includes 304 professionals, nearly two-thirds of whom are residents of the local community. Each associate has participated in extensive skills development training relevant to their job function and completed a comprehensive, mandatory workplace safety curriculum executed by WP&V.

The first such plywood mill constructed in the United States in more than two decades, the WP&V facility boasts 287,000 square feet and is more than 765 feet in length. The company sells structural and industrial plywood and veneer, procuring its logs from sources within 60 miles of the facility.

The company began shipping production this past November.

PANEL WORLD NOVEMBER 2020