As we headed through a recent cold snap, contacts noted most domestic markets were performing well. There was good demand from truck trailer flooring producers and pallet manufacturers and wholesalers. Sales to cabinet manufacturers and residential flooring were good as the home sale markets both in Canada and the U.S. were doing well, as was the home building and renovation markets. Supplies of lumber and logs are somewhat tight in most areas, noted contacts, thus contributing to a vibrant market environment. Shipments to China had slowed, as normal, ahead of the Chinese New Year.
The regionally important species Hard Maple is now in high demand but with limited supply. Sales to cabinet and wood component manufacturers has increased, with Hard Maple going to other secondary products, including furniture. Production is struggling to keep pace with demand, and prices are therefore escalating.
Soft Maple has been good but not as good as other species such as Red Oak, Hard Maple and White Oak. It is holding its own, however. The upper grades were moving well, but interest in the common grades has improved in the last months. Demand from furniture, wood component and cabinet sectors is bolstering sales.
Demand for Red Oak has been strong on domestic and to U.S. markets. This has not been seen in some time, commented contacts. Some feel the remodeling market is the driver for this species. International markets are also noted as strong. Prices have also increased for this species as a result of rising demand. Green lumber production is also struggling to keep pace with buyers’ needs for all thicknesses and grades combinations. It is difficult to add any volumes to log decks, but sawmills are processing more Whitewoods than Red Oak at this time.
Domestic demand for White Oak is also strong. Since production was limited for some time, there is now limited kiln dried availability. Demand for green stock is reported as solid, but sawmill production is short of buyers’ needs, especially for the upper grades.
With improved economic conditions, there is a need for all kinds of goods which has driven stronger demand for wooden pallets and containers. Mills and wholesalers are not having any difficulty shipping pallet lumber and cants. Even though there was a ramp up in production in the last few months, production remains low.
Ash production is reported as being sawn less than in the past, and most of the production is noted as going for export, mostly to China where demand is good. Sales on the domestic front have improved and are better than the past several years with increase in demand from wood furniture and RV production.
Cherry demand has been relatively quiet noted contacts, and exports to China were quiet as well due to the New Year. Deliveries were scheduled around this time. However, contacts noted that sales were brisk leading up to the holiday. Kiln-dried supplies were scarce with prices gaining momentum in ongoing business.
Residential wood flooring production and exports to the U.S. are doing very well as the growth in new home construction and remodeling continue. Hickory flooring is a very popular species, along with Red and White Oak. Cabinet manufacturers are also purchasing more of this species as are moulding producers. Exports are reported to be good.
Walnut demand has been strong since the second half of 2020 and early 2021. Exports were also reported as good, with plenty of orders being shipped following the Chinese New Year. The species is also selling well on domestic markets, commented contacts. There are shortages of logs and lumber for sawmills and to downstream operations.
With the federal budget being planned (at the time of this writing), the Canadian Federation of Independent Business (CFIB) said small business owners need the federal government to use the budget to lay a clear roadmap to recovery. This includes extending COVID-19 relief, keeping business costs down, reducing debt and red tape, and helping businesses hire back their workers.
According to CFIB, more than three quarters of small business owners say that 2020 was the most difficult year ever for their business. Many are still relying on federal aid to survive. The budget must extend and expand small business supports until such time as governments are able to recommend Canadians go back to their normal lives, including dining, shopping, travelling and entertainment.
Recently, CFIB revealed that one in six small businesses was at risk of closing before the end of the pandemic, putting 2.4 million jobs at risk. CFIB presented Finance Minister Chrystia Freeland and all Members of Parliament with a plan, based on feedback from its small business members: put in place a moratorium on any new taxes and costs to small businesses; forgive more small business debt and allow longer repayment terms for loans; introduce significant hiring incentives to help reunite employees and employers, as well as offset cost of Canada Pension Plan/Quebec Pension Plan increases; make reducing red tape a priority, including eliminating unnecessary regulations; and hold off on introducing consumer incentives until small businesses can fully open and benefit.
“The well-being of small businesses needs to be at the center of any economic plans the government puts forward in the coming months and years,” added CFIB president Dan Kelly. “A general consumer stimulus may be helpful at some stage, but if done too early, it will simply help Costco and Amazon, bypassing the hardest hit small businesses who are only beginning to reopen their doors. We need to help small firms get through the current crisis and transition from subsidies to sales, so our economies, our communities and our jobs can begin the long road to recovery.”
The industry hopes the budget will assist businesses through the pandemic and it hopes that businesses can return to a more normal way of life. There are still many unknowns, even though vaccines have started rolling out across the province and small steps are being taken to reopen businesses in a safe environment.
