Lumber was, is and always has been a staple material for construction. As the economy undergoes changes, demands fluctuate and the construction industry ebbs and flows, the lumber market experiences direct effects. Your lumber store in Franklin County, MA keeps a close watch on these factors to remain up to date on the latest lumber news.
Following is an overview of where the lumber market is headed for this year. With the U.S. economy churning away in a healthy manner, things are looking up for lumber. For more information about the lumber market, feel free to contact your local lumber store in Franklin County, MA.
All regions that are considered major lumber consumers are expected to experience record gains in 2019. The U.S. and China will lead the pack, with increases of seven percent each. Many European countries and Canada are expected to experience moderate growth. Overall global softwood demand is expected to increase by nearly three percent from 2018. Similar increases should be seen in 2020 as well.
Global production of lumber is also on the rise. It is estimated that production will increase by more than two percent in 2019. In the United States, it is expected that production will increase up to 4.5 percent.
Of course, the housing market is a major influencer on the lumber market. Experts expect the housing momentum to continue upward for the next few years. It is estimated that roughly 1.3 million new home starts will occur in 2019. Based on these improving housing starts, as well as strong showings in repair and remodeling projects, lumber consumption is expected to increase in 2019 compared to 2018. Softwood lumber consumption may reach 52 billion in 2019.
Over the past few years, demand for lumber has grown more quickly than capacity. The North American market experienced a demand/capacity ratio of 89 percent in 2018. It is expected that 2019 will continue to increase demand on North American mills. Still, lumber prices are projected to be lower in 2019 than last year.
What factors influence these market trends? In the past, the lumber market has experienced fluctuations due to a variety of factors. Shipments have been delayed due to weather. Disasters such as forest fires can greatly affect availability and delivery of lumber products. A flood of supply to the market can also affect pricing. The principles of supply and demand are always at work. Fortunately, for the foreseeable future, this balance seems to be in favor of lumber.
Would you like to learn more about the lumber industry and what lies in store for this market? Contact your local lumber store in Franklin County, MA for expert input. The staff at Forest Products Associates is friendly, knowledgeable and ready to assist you with any questions or concerns that you may have. Since 1946, we have been providing the highest quality of wood to the Greenfield area and beyond. We carry over 50 species of wood, from mahogany and cherry to maple and purple heart. Call or stop by Forest Products Associates today!
