by Web Editor | Sep 7, 2018 | News
In a recent message from the National Hardwood Lumber Association encouraging member companies to contact representatives in Washington regarding the tariff situation, NHLA passed on this information from the Hardwood Federation on the importance of the wood products industry to the United States.
The wood products industry in the United States is an important contributor to the U.S. economy, accounting for approximately 4 percent of the total U.S. manufacturing GDP. Wood products companies are among the top ten manufacturing sector employers in 47 states, producing $210 billion in products annually.
The industry employs nearly 900,000 people; more than the automotive, chemicals and plastics industries. Many of them are in rural areas where employment opportunities are limited.
Hardwood is an important sub-sector of the wood products industry and has a heavy reliance on export markets for its survival.
In 2017, U.S. hardwood producers shipped $4.04 billion worth of U.S. products to global markets; $2.09 billion to Greater China, including Hong Kong and Macau. Combined, China, the NAFTA countries and the E.U. make up 82 percent of hardwood exports. Dependable, long-term export markets are vital to the sustainability of the hardwood industry. In 2017, the U.S. had a trade surplus of $1.475 billion in hardwood lumber, up from $1.1 billion in 2015.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/how-important-us-wood-products-industry?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news
by Web Editor | Dec 13, 2017 | News
The likelihood of strong profits from the wood products business, alongside higher prices and growth in paper packaging from increased e-commerce demand, will help to offset the secular declines in the printing and writing paper segment, says Moody’s Investors Service in its annual sector outlook published recently. As a result, the outlook for the global paper and forest products sector will remain stable in 2018.
“The stable outlook for paper and forest products globally next year is underpinned by an expected 2%-4% growth of our rated paper and forest products companies, as strength in the wood products and paper packaging subsectors offset decreased demand for commodity paper as the shift to digital-first alternatives continues,” says Ed Sustar, a Moody’s Senior Vice President and author of the report.
On a subsector basis, the positive outlook for wood products and timberland is buoyed by improving strong end-market demand for timber, lumber, oriented strand board (OSB) and engineered wood products as US housing starts increase about 6%, or approximately 1.28 million units, in 2018.
Bolstered by the robust demand emanating from the US homebuilding market, average lumber prices are expected to remain strong, with increased production capacity aligning to support the demand, Moody’s says. Nevertheless, analysts caution that the tight lumber markets will allow countervailing anti-dumping duties assessed on Canadian lumber exported to the US to be passed on to consumers. The issuers most expected to benefit from a combination of higher lumber prices and little-to-no lumber tariffs include Potlatch Corporation, Georgia-Pacific, Weyerhaeuser Company and Rayonier Inc.
From Moody’s Investors Service: https://www.moodys.com/research/Moodys-Wood-product-growth-supports-2018-stable-outlook-offsetting-commodity–PR_377021
