Canadian forestry finding its footing despite market challenges

 

The good news is that market conditions and profits are improving for Canadian lumber and pulp and paper producers.

The recent numbers are promising. 

First-quarter financials show that B.C.’s major forestry companies have been posting increased earnings, thanks to higher lumber prices, a low Canadian dollar and an improving U.S. housing market.

U.S. housing starts were up 6% in the fourth quarter of 2015 compared with Q4 2014, according to PwC. 

New housing starts in the U.S. have been recently calculated to be an average of 1.1 million. Business Council of BC chief economist Ken Peacock said they’re forecast to rise to 1.2 million to 1.4 million between now and 2025.

“Essentially, the story is low interest rates, better job market and demographics are going to continue to drive the U.S. home-building market over the next five to six years,” Peacock said.

Read the full article on BIV.com.