Canadian Industrial Outlook
This report examines the short-and medium-term economic and profitability outlook for Canada’s wood products industry.
Production Decline—Thanks to a dismal export performance, Canada’s wood products industry saw production fall by 1.6 per cent in 2018. This decline comes after eight consecutive years of expansion, during which industry output averaged gains of 4.1 per cent per year.
Feeling the Pinch—A correction in lumber prices means that Canadian lumber exporters no longer find themselves insulated from the impact of U.S. tariffs. Higher-cost mills, unable to compete in the U.S. market, are scaling back production, dampening the industry’s growth trajectory.
Taller Wood Buildings—Mass timber construction represents an important opportunity for Canada’s wood products industry, particularly considering the underwhelming prospects for North American single-family home construction. Fortunately, several factors are supporting the growing use of wood in mid- and high-rise buildings, including advances in wood product technology, environmental concerns, and changing building codes.