Canada’s wood product industry will lose momentum this year but still post a second consecutive profitable year, according to the Conference Board of Canada’s Spring 2011 outlook for the industry.
After recording losses totalling $1.6 billion between 2007 and 2009, the industry achieved profitability last year.
“Following a solid rebound last year, the wood products industry is expected to lose momentum in 2011,” said Michael Burt, the organization’s associate director, industrial economic trends, in a press release.
“Ongoing weakness in the U.S. housing market and a slowdown in residential construction activity in Canada are limiting growth in demand for wood products.”
But Burt added: “However, the industry is expected to remain in the black in 2011, thanks to cost-cutting measures implemented in previous years and industry efforts to diversify away from the U.S. market.”
The conference board predicts production growth will slow to 3.9% this year, down from an increase of 10.7% in 2010. It expects stronger production growth in 2012, driven by an improvement in residential construction activity in Canada starting in 2012, rising exports to China and a recovery in the U.S. housing market.
No regional breakdown was available for B.C.
Jenny Wagler
Twitter: JennyWagler_BIV