Canada’s wood products industry is expected to see pre-tax profits more than double this year, according to a Conference Board of Canada report released this morning.
The board’s Spring 2013 outlook predicts that pre-tax profits will reach an eight-year high this year, and that approximately 6,000 new workers will be hired in the industry.
“Canada’s wood products industry is cashing in on the recovery in the U.S. housing market and strong Chinese demand for wood products,” said Conference Board economist and report author Lin Ai.
The report states, however, that the positive outlook due to the U.S. housing market and demand from China is offset in part by a weak domestic housing market.
Highlights of the report include:
- industry revenues will reach a six-year high of $24 billion in 2013, due to price improvements and higher production;
- increased production will lead to higher costs, but revenue gains will more than offset them; and
- 2013 will be the fourth consecutive year of profitability, due to cost-cutting measures taken prior to the 2008-09 recession.
Canada’s paper products industry, however, will not have such a positive year, the report states. Weak production will result in a slight dip in revenues and decreases in employment and material inputs. The report states an anticipated pre-tax loss of $213 million in 2013.
