Managing Lumber Duties—Although industry exports are projected to contract sharply this year, much of this decline is due to wildfire-induced supply constraints in B.C. and railway transportation problems along Western Canadian routes, as opposed to the impact of lumber duties, which are largely being offset by record lumber prices.
Rising Competitive Pressure Cloud Export Outlook—Record lumber prices are attracting an influx of non-Canadian foreign lumber into the U.S. market from countries that maintain significantly lower operating costs compared to Canadian producers. This will be a key impediment to Canadian firms looking to capitalize on the continued recovery in U.S. housing demand.
Timber Supply Constraints—Several factors linked to climate change, including disease outbreaks and forest fires, continue to weaken the supply of logs available for processing. This is damaging the industry’s long-term potential to produce lumber.