The South – known for heat, beaches, and increasingly…lumber.
The region is stepping up its wood game supplying North America. The demand saw increases partly from Canadian companies accessing forests there. Availability and U.S. tariffs on softwood have caused the companies to venture farther south.
Canadian wood recently stacked up more than a quarter of U.S. demand, and U.S. producers accounted for two-thirds of the domestic market. However, availability of timber in British Columbia and high lumber prices for Western spruce, pine, and fir have caused uncertainty.
Plus, this: One of Canada’s largest lumber producers, West Fraser Timber Co., is facing “unscheduled downtime” because of transportation issues.
Flooding late last year washed away tracks and blocked highways. The hollowed production bumps lumber futures that are already 32% higher this month because of tight supplies. With peak building season approaching, housing inflation could build.
Not to mention… Warm weather and beetles have been cutting down forests over the past 20 years. The mountain pine beetle has destroyed 50M acres of forest and is partly to blame for the worst lumber shortage in history. Prices are up 200-300% compared to before the pandemic.