News out from the Conference Board of Canada says that the Wood Industry returned to profitability in 2010.
The increase was due to a small boom in Canadian housing, a small increase in demand from the US, and increased exports to China.
Revenues are increasing this year for the first time since 2004. Despite rising costs, the industry is expected to post a profit of $476 million in 2010.
Even better, the Conference Board predicts this trend will continue into next year.
The brightest spot seemed to be Canadian exports to China:
Canadian producers attempts to diversify away from the U.S. market and break into China appear to have paid off, the board says.
"Between 2000 and 2010, Canadian exports to China have increased by 3,300 per cent. In fact, Canada surpassed Russia this year as the biggest exporter of softwood lumber to China," the board said.
Link to full article:
Tuesday, December 14, 2010
Sunday, December 12, 2010
I just read in today's Globe and Mail newspaper that lumber exports to China and Japan matched those to the US for the first time ever this past September. This is a very significant event for the Canadian forest industry and if the trend continues, could help us decrease our reliance on the US market. Most economic reports I've been reading point to continued growth and expansion in Asian countries, which bodes well for lumber and other commodities like copper and agriculture crops.