It’s been a busy winter season, and contacts were in a more optimistic and positive state of mind in the hopes that 2022 will be a better year for them and that the Omicron virus will abate as infection numbers continue to decline. Ontario and Quebec announced eases to restrictions for businesses and restaurants in mid-February and for early March, which are hoped will reactivate some of the economy, where people can return to a more normal life.
With the past year seeing many challenges, the industry remains optimistic despite everything they’ve been through. Their outlook is one that sees an untapped potential in sustainable forest management and forest products in terms of climate solutions with a focus on economic growth to bring green economic benefits. The ongoing labor shortage and finding skilled workers for the communities that are forestry-driven will continue to be critical.
Some contacts reported business as good, although scarcities of materials, price hikes and supply chain delays are a challenge. The same was said by businesses in the U.S. border states. Domestic and international demand are decent, but shortages are felt for Hard and Soft Maple, Birch and other Whitewoods.
Some contacts noted that Ash demand was solid with limited availability. Components manufacturers are purchasing good quantities as are other end users. Exports to China had abated somewhat, but were noted as increasing to some small and mid-sized markets. Prices are seen as rising.
With strong home construction and remodeling activity, Basswood is selling well to producers, wholesalers and moulding plants. There is also interest from other markets that are seeking more Whitewoods. It was noted that prices for green Basswood varied, according to areas contacted as in the Appalachian Region.
As U.S. and Canadian markets are strong for tight-grained woods and painted finishes, Birch business is brisk, and demand is lagging due to supply strains. Cherry demand, on the other hand, is noted as relatively slow. However, sales vary by area contacted depending on customer preferences for finished goods.
The regionally important species, Hard Maple, continues to be vibrant with supplies insufficient to meet demand for most grades, thicknesses and color selection. This is resulting in higher prices for this species.
Soft Maple is also seeing high activity at sawmills, kiln-drying operations and distribution yards. These businesses report they can’t keep it stocked, material being sold before it is even made available. As a result, prices are ticking higher, as are prices for most grades and species.
Furniture manufacturers, moulding and millworkers and cabinet manufacturers are maintaining a high level of demand for Poplar. Exports, noted contacts, had improved somewhat, especially to Vietnam. The furniture industry reported a strong demand for finished goods. They added they are struggling to purchase raw materials and components due to supply chain delays and availability of these components.
The flooring, cabinet, millwork and mouldings manufacturers are keeping busy, ordering Hickory. This species is seeing a rise in demand from all areas of the industry. The same is said for Red and White Oak production and sales. Flooring and truck trailer manufacturers are steadily purchasing these species. Flooring manufacturers were noted as buying more White Oak than Red Oak at this time.
Walnut has also been selling well, and it was reported that green Walnut had been selling well for the past 18 months. As a result there has been increased production, with prices responding accordingly. Kiln-dried Walnut is readily available, and depending on the area contacted, exceeding needs. Some cabinet manufacturers noted that design trends for 2022 were focused on “health, sustainable quality and a touch of country charm.” This means using warm-toned woods, such as Maple and Cherry, for cabinets and accents for kitchens. Consumers are moving towards a more contemporary look merging refined thin rails – rustic-style pulls on wood cabinets that are white or light-toned wood – rather than the starker, sleeker modern designs of the past several years. Other items selected are ones that seek to bring the outdoors in, embraces warmth, texture, and natural materials, such as live edge wood, weathered stone, and brushed or metal finishes, rather than overly polished or manufactured materials. With the ongoing pandemic, people are seeking more comfortable and relaxing rooms as they are living where they also work. No one can say if a return to work for most will happen once the pandemic is over, or if this work-from-home trend will be the new way of life.
