The study, Sources of Softwood Lumber to the U.S. 2017-2030, a collaborative effort by Wood Resources International and ForestEdge LLC, studies how demand for softwood lumber in the United States (U.S.) can be met even as dynamic changes in both North America and overseas result in cost evolution over the coming ten years.
The study, over 218 pages, looks at a few factors.
Projected demand
This part of the study looks at projections of housing starts, along with expenditures for repairs and remodelling, and the evolution of other sectors that contribute to wood demand.
Projected supply
This section concentrates on key supply regions, such as Canada, New Zealand, as well as the U.S. Northwest and South, among others. On top of an overview of the softwood sawmill industry, here, the current use and supply of softwood if reported, and also includes projections of supply, analysis, and projection of delivered log costs. The section also features forecasts of lumber production, assessments of potential exports to the U.S., and a cost model for products. Country profiles for some countries, such as Russia, Germany and Finland, among others, are also included.
Supply curve analysis
This portion of the study makes use of alternative projections of demand and supply of softwood lumber on a delivered cost basis to pinpoint which regions are the most likely to supply the U.S in the future, and also discourses on how changing sources of lumber supply may impact trade and delivered costs.
Conclusions and sensitivities
The study also takes fluctuating exchange rates into account and offers insights into the various implications regarding timberland investments in different regions as a result of higher demand from the U.S. in the future.
Source: Wood Resources International
