Though the forest industry suffered the recession, 2010 reported strong results. However, 2011 proposes a some obstacles that are keeping a lid on optimism. Lumber prices have done nothing but rise in the past four years and with the tight log supply you can rest assured that they will continue to do so. Asia has emerged as a strong competetor in the forest industy. Along with the growing value of the Canadian dollar, the United States is having a hard time fully recovering from the recession.
Companies are expecting 2011 to mirror 2011, a year long road to recovery. Companies will continue to invest and modernize their existing equiptment and begin adding shifts at existing mills. The lumber industry is not expecting a breakout year and with home foreclosures at a record high for 2011, the need for lumber is low and is expected to remain low.
When it comes to pulp, the demand has stayed high and is recovering from 2009. Asia has ow become the top pulp manufacturer of the world. When it comes to lumber, the demand for lower grade lumber from China is expected to keep growing and Japans lumber industry is beginning to recover as well.
The collapse of the logging sector accross North America is bound to keep supply lines tight and prices high. The problem is that most companies have contracted out their logging business. But many of the companies went bankrupt during the recession. 2011 is expected to be a better year than 2010 but celebration should not come too early.http://www.vancouversun.com/entertainment/Forestry+industry+surging+nobody+will+utter+words/4254694/story.html
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