U.S. demand to bolster B.C. forestry in 2015

Housing market recovery expected, but trade deal uncertainty looms

Business in Vancouver

Forestry will be boosted by the improving U.S. home-building market in 2015 – but expect more mill closures and the reopening of the contentious Softwood Lumber Agreement. Housing starts in the United States didn’t recover as quickly as expected, but they’re finally back, along with demand for lumber. The low Canadian dollar is also giving Canadian forestry companies an edge as they export to the south. “We’re seeing sustained recovery in the U.S.,” said Russ Taylor, president of International Wood Markets Group. “2014 was a much slower pace than [most forecasters] expected.” Economic growth in China, B.C.’s second-largest export market for lumber, has slowed. Meanwhile, Japan, another major export market for B.C. wood, has entered a recession.

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