Quebec Business Trends March 2026 – Adequate Inventories Despite A Slow Start
Business was quieter at the beginning of the year commented contacts. With heavy snowfall in many areas since December 2025, logging activity was more challenging. Despite the lower supplies, inventories are adequate for end users for this time of year.
Ash supplies are tighter due to lack of available logs caused by invasive species. Some sawmills curtailed production or reduced it. Supplies are not exceeding market needs and prices being stable.
Basswood markets are doing relatively well, with limited production keeping pace with demand at this time.
Cherry demand improved since trade tensions eased between the U.S. and China, so those who are exporting have started to rebuild their inventories to ship to China.
The solid wood flooring industry as well as the cabinet sector are interested in Hickory although both these sectors experienced a slowdown in sales for finished goods of this species. Demand is in line with available supply.
Hard Maple continued its stronger demand compared to other species on markets. Production was meeting demand.
Soft Maple is noted to be the best selling species overall in Hardwood markets. No. 1 Common & Better grades are selling well according to color selection. It is a bit more challenging to grow inventories for certain items. This is due to slower residential construction in the U.S. and uncertain global markets.
Red Oak kiln-dried orders have been moving to China, the Middle East and Europe. With sales being firmer at year-end 2025, on-hand inventories were reduced. Prices were noted as rising for this species. Demand from the residential flooring manufacturers were slower for green Red Oak.
White Oak interest on both domestic and international markets is absorbing production for most grades and thicknesses.
Supplies are sufficient to meet market needs of Poplar. Kiln-dried prices are steady, except for No. 1 Common Poplar pricing which is rising. Interest was picking up from Vietnamese and Chinese buyers noted contacts.
Some sawmills are selling Walnut logs rather than saw them. With log exports over the past year, there was limited lumber production for this species resulting in some shortages.
In order to ensure the harmonized deployment of Build Canada Homes in Quebec, in line with its priorities and jurisdictions, the governments of Canada and Quebec signed a memorandum of understanding to guide their collaboration. This is a shared desire to increase the housing supply in the region; they are strengthening their collaboration to accelerate housing construction and support community development.
The announcement was made in Québec City by the Honorable Gregor Robertson, Minister of Housing and Infrastructure, Caroline Proulx, Minister Responsible for Housing, the Honorable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, Geneviève Guilbault, Minister of Municipal Affairs, Caroline Desrochers, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Trois-Rivières, and Bruno Marchand, Mayor of Québec City.
The two governments will work together to fund affordable housing projects aligned with shared priorities, simplify and accelerate approval processes, and ensure better coordination between government, municipal and community partners.
Recognizing that accelerating residential construction necessarily requires major infrastructure investments, the two governments also announced the signing of the Agreement on the Canada Housing Infrastructure Fund. Under this agreement, the federal government will invest nearly $1 billion, which Quebec will be able to use in accordance with its guidelines and territorial needs to modernize and develop essential infrastructure—particularly in the areas of drinking water, wastewater and stormwater—necessary for the completion of new housing projects.
This integrated approach will increase the supply of housing, support municipal growth and strengthen the economic vitality of the regions.
Through this joint action, the governments of Canada and Quebec are reaffirming their commitment to respond in a structured and concrete manner to the housing crisis and to improve access to affordable housing for Quebecers.
