Beginning in 4Q2017, prices for domestic and export Douglas fir logs in the Pacific Northwest (PNW) rose steadily before they spiked in 2Q2018 to record levels. The phenomenon occurred when North American lumber prices also surged to record highs. While regional lumber producers in the PNW couldn’t fully capitalize on high lumber prices due to their equally high log costs at the time, producers in the US South were perfectly positioned to take advantage of the market and maximize profits.
Most “lumber talk” across North America over the last week has centered around the Montreal Wood Convention, a great event that draws the sawmill industry together every year. Attendees reported well-stocked inventories but a lag in production because deliveries to many parts of the US were stymied as severe flooding has taken over large swaths of the Midwest and the Northeast. Rail lines continue to flood and bridges are washed out all over the Midwest, so important transportation hubs like Memphis, TN, and Chicago, IL, are experiencing severe delays, backlogs and lack of rail car arrivals.
As I wrote in the first installment of this blog series, it’s nearly impossible to overstate the impacts that the Great Recession of 2008 had on the North American forest products industry. The sudden plunge of the housing sector had cascading effects that immediately influenced the entire global economy.
American manufacturer of sawmill and woodworking equipment Wood-Mizer announces the expansion of production in Indiana
Emeryville, Calif., Mar 12, 2019 - SCS Global Services (SCS) is pleased to announce that it is now offering chain of custody certification to the Sustainable Forestry Initiative (SFI) Chain of Custody Standard. SFI is a leading, credible certification in North America for responsible forest products. This new service offering leverages SCS as a one-stop shop for the wood and paper industries, providing clients with increased efficiency for dual and triple chain of custody certification to the major three forest sustainability standards. SCS is also currently undergoing accreditation for, and will soon be offering certification services for SFI Forest Management and SFI Fiber Sourcing Standards.
Ahlstrom-Munksjö coated products extends their product line of Aerobak™ liners for advanced composites
The forest products supply chain is a complex system of resources, organizations, activities, people, information, technology and market conditions—all of which must interact to move a product from a supplier to a customer. Efficient and well-managed supply chains are critical in the US South’s sawmill industry because log costs represent the single largest operating cost and, unlike the sawmill industry in other parts of North America, average log inventories at southern yellow pine (SYP) sawmills are very low.
The Food and Agriculture Organization of the UN (FAO) will convene the 30th session of the North American Forestry Commission to bring together forestry experts and decision makers from the region.
One of six region-specific meetings held every two years in support of the FAO Regional Forestry Commissions, the event serves as a policy and technical forum for countries to discuss and address forest issues on a regional basis.
As we recently noted in our detailed study of the wood residuals market, it’s nearly impossible to overstate the impacts—both immediate and long-term—that the Great Recession of 2008 had on the North American forest products industry. The effects in the US South, in particular, have created a market situation with both advantages and disadvantages for various stakeholders in the supply chain.