Ontario Business Trends August 2026 – “Steady” Is the Key Word For Lumber Market
Business for the hardwood sector was quieter, as summer vacation is upon us, and people take time to step away for a moment to rest and recharge. With housing market conditions slightly lower than last year, many consumers are focusing on home renovations rather than opting to buy. Homeowners focused on functionality and value added. Interior design trends integrated nature, more open-concept layouts, and softer, more curved architectural elements. Overall, the Canadian timber industry continues to navigate fluctuating exchange rates and tariff policies, which is altering the composition and cost-effectiveness of cross-border shipments to U.S. and overseas buyers.
Ash demand continues to be tight, and export market demand is noted as steady. Prices are reported to be highest for both green and kiln-dried, and are at highest levels in nearly four years.
Aspen demand is steady, with noted price increases, especially at the beginning of this year. With its many varied uses and unique properties and characteristics, it is used in pallets, food service and utensils manufacturing, interior paneling, laths for residential and commercial saunas as it has exceptionally low heat conductivity, furniture and toy manufacturing, among many others.
Basswood sales, noted contacts, remain steady as demand from window and shutter blind sectors are its largest buyer. Sawmills are also busy with this species serving their varied clients, with shipments to the U.S., Europe and Asia. Mouldings manufacturers and woodcrafters are also purchasing decent quantities of Basswood.
While many other wood species faced supply deficits, Birch supply, it was reported, continued to outpace demand, which led to some sawmills controlling and managing their Birch output in late spring-early summer.
Hard Maple sales continue to be high for this species. Ontario and Quebec mills are supplying the flooring, furniture, cabinetry, specialty sports flooring, and veneer sectors, while export channels are also steady to Vietnam and China. Log supplies were affected due to the unseasonably heavy rainfalls recorded during May and June across the province and into Quebec.
Sawmills worked quickly to process Soft Maple to avoid stain, however, demand for this species remained steady.
It was also noted that some businesses were switching to Hard Maple, when possible, to reduce elevated costs for Soft Maple.
Red Oak sales are moderate, with some reporting that supplies being a bit tight and prices remaining steady to firm. Order files are from flooring manufacturers, furniture, stair and railing producers. Export markets include Europe, China and Vietnam. Sawn and veneer grade logs are also shipping to these markets. The residential flooring, cabinetry and moulding sectors are also keeping domestic markets busy. Specialty furniture manufacturers are also purchasing kiln-dried Red Oak.
White Oak supplies remain tight, though availability varies by regions contacted. Export markets are showing modest improvements to China, the U.K., Western Europe and Japan, with additional activity reported to Vietnam and India. Thanks to its timeless appeal, the species continued to attract strong interest from designers and woodworking influencers, and it features prominently in many Canadian projects. Demand also remains steady among DIY enthusiasts and artisanal buyers.
On June 3, 2026, the Hon. Tim Hodgson, Minister of Energy and Natural Resources, announced close to $130 million in federal funding for 56 projects across Canada to help advance the forest sector’s transformation. These projects support the development of new low-carbon wood technologies, expand the use of mass timber in construction, support Indigenous participation and forest-sector businesses, increase manufacturers’ capacity to add value to wood products and help diversify export markets. The projects are located across the country mainly in Ontario, Quebec and British Columbia, with other projects in Saskatchewan, Newfoundland and Labrador, and the Northwest Territories.
The Minister also released the Canadian Forest Sector Transformation Task Force’s final report outlining recommendations to stabilize the sector, alongside measures to modernize operations, attract private investment, expand the use of wood in construction, increase production of value-added wood products and diversify export markets.
“Canada’s forests are the foundation for good jobs, affordable housing and sustainable economic growth from coast to coast. Today’s announcement and our ongoing work with provinces, territories and Indigenous groups will make sure that our government can support and stabilize the industry today while building stronger for tomorrow,” said Minister Hodgson.
Also, the Minister of Energy and Natural Resources announced the Forest Sector Action Plan, with key commitments to drive the transformation of the forest sector in collaboration with provinces, territories, Indigenous Peoples and other key partners.
The Action Plan is informed by the Canadian Forest Sector Transformation Task Force’s recommendations and builds on the extensive work it completed during its 90 day mandate.
The plan focuses on four priority areas to position Canada’s forest sector as a leading global supplier of both traditional and advanced forest products: securing a competitive and predictable supply of wood fiber; making the investments required for innovation and modernization across the sector; expanding domestic and international market opportunities; and supporting workers and communities through skills development and transition measures.
