Canada’s Wood Products Industry: Industrial Outlook Spring 2017
This report examines the short-and medium-term economic and profitability outlook for Canada’s wood products industry.
- Softwood Lumber Duties—The U.S. Department of Commerce has issued preliminary countervailing duties on Canada’s softwood lumber, averaging 20 per cent. When combined with anti-dumping duties that are expected to be announced in June, these duties will cut into Canada’s shipments to the U.S. and act as a drag on industry growth.
- Manufacturing Standout—The wood products industry outgrew Canada’s overall manufacturing sector for a fifth consecutive year in 2016. Even more impressive is the degree to which the industry has outperformed, with output growing by 5.8 per cent per year over the past five years, compared with 1.0 per cent for the overall manufacturing sector.
- U.S. Housing Market—Despite trade restrictions on softwood lumber, some segments in the wood products industry will still experience strong growth, driven by the ongoing recovery in the U.S. housing market. New housing starts are forecast to increase at a double-digit pace over the near term, supported by improving labour market conditions.