According to published reports, the furniture industry has struggled with orders for several years, which drove many companies to stop production temporarily through this challenging economic climate. Residential furniture manufacturers were reported as remaining cautiously optimistic, hoping that economic conditions and orders will rise by mid-2025. It was noted that the larger furniture producers were featuring Red and White Oak, and Ash.
Upper grade Ash is in better demand than the same for kiln-dried items. Secondary manufacturers and wholesalers are working to increase their supplies. International and domestic business was reported to be flat, but suppliers’ inventories are manageable, with prices reported as mixed.
Demand for the lower grades of Aspen is weak, and this species is seen as an underperforming species at this time.
Basswood demand is also low and seen as one of the three worst selling species. Sellers state selling thicker stocks is more difficult. As for many species, this one is also facing similar challenges. Some secondary manufacturers are limiting their use of hardwood lumber for fixtures, interior furnishings, and using wood composites and non-wood materials instead. Controls are tight on purchases at this time.
Contacts stated that good color Birch demand is steady, while the lower grades are less in demand. Sawmills and wholesalers are thus managing their purchases to control log and lumber purchases and avoid too much supply.
Hard Maple demand is based on its grade, classification, thickness and color. Demand, as for many grades reported, are for upper grades, and Nos. 1 and 2 White is the preferred choice over unselected grades.
The upper grades are also selling best for Soft Maple, stated contacts and sawmillers.
Red Oak demand is also doing well on domestic markets commented contacts. Production has been moving consistently for No. 1 Common. But demand for Nos. 2A and 3A are down due to contracted business from the residential flooring and truck trailer flooring sectors.
White Oak production continues to be strong, and remains one of the most popular for flooring, high end cabinets, millwork, moulding and furniture. It is also selling well to Europe, Australia and Japan.
For generations, Canada’s forests have provided shelter, space to relax and play, and opportunities for economic growth. Trees also serve as the backbone for urban and rural ecosystems: cleaning our air, preventing erosion and providing a home for wildlife.
Unfortunately, the twin threats of climate change and biodiversity loss, compounded by natural disasters made worse by global warming and deforestation, are putting Canadian trees at risk. By restoring nature and giving it room to grow, we can help slow down and fight climate change by removing greenhouse gases from the atmosphere. For example, Canada’s iconic boreal forest stores some of the biggest amounts of carbon on Earth — and we are taking the necessary steps to protect and grow it.
Through the 2 Billion Trees (2BT) program, the Government of Canada is doing its part to support communities. As of June 2024, the government has signed or was negotiating tree-planting agreements with 11 of 13 provinces and territories, 40 Indigenous partners, 32 municipalities, 86 non-governmental organizations and more, representing a commitment to plant 716 million trees — nearly tripling last year’s total.
After the third planting season under the program, Canada has made progress in putting more trees in the ground with over 157 million trees planted. In order to rapidly build on that progress, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, recently announced an investment of over $200 million in more than 30 new tree-planting projects.
These projects will result in over 160 million new trees across the country.
Housing starts over the next few years will likely weaken and the already-dire supply shortage could get even worse, warns the Residential Construction Council of Ontario (RESCON). In the report prepared for RESCON released in mid-November, titled Housing Market Outlooks in Ontario, by a Toronto-based economic research firm who has been analyzing housing markets for more than 40 years for clients in the private, public and not-for-profit sectors, provides an overview of the housing market and develops forecasts covering 2024 to 2028 for Ontario, and municipalities in the Census\metropolitan Areas of Toronto, Hamilton and Oshawa.
For new home sales to recover, affordability needs to be returned to prior levels via a combination of interest rate decreases and reduction in government-imposed costs and land prices, although both scenarios seem unlikely to happen. The report cites other factors that need to be addressed, such as delays in land use approvals and infrastructure, the amount of developable land available for purchase by builders, and escalation of mortgage regulations which have reduced mortgage amounts that can be obtained by buyers.
