Lumber Markets Face Historic Lows Before Recovery

Demand for lumber in the U.S. in 2009 will slide to the lowest level in modern history, then move toward a slow recovery starting next year, according to a new forecast by Western Wood Products Association.

The poor economy and a housing market that has plummeted to historic lows are the chief reasons for the remarkable decline in lumber demand. WWPA predicts U.S.lumber demand will slide this year to just 28.9 billion bd. ft., down almost 307o from 2008 totals.

Since reaching an all-time high of 64.3 billion bd. ft. in 2005, U.S. demand for lumber has dropped by more than 557o- the steepest decline in the history of the industry.

Home construction traditionally accounts for more than 45Vo of the lumber used each year. WWPA estimates just 432,000 houses will be started in 2OO9, down more than half from 2008 totals and one-fifth of what was built in 2005.

The volume of lumber used in new home construction is expected to total 5.3 billion bd. ft. this year, compared to the 2'7 .6 billion bd. ft. consumed in home building in 2005.

In 2010, housing is forecast to improve modestly to 553,000 starts, bringing lumber consumption to nearly 30 billion bd. ft. WWPA does not expect housing starts to exceed I million units until 2012.

The unprecedented decline in demand has taken its toll on lumber producers. Western lumber production is forecast to decrease nearly 26Vo to 9.7 billion bd. ft. That volume is the lowest since the 1930s and reoresents a little more than half the volume western mills produced five years earlier.

Mills in the South will see production declines as well, falling to 10.9 billion bd. ft. in 2009. In all, U.S. lumber production will total 21.8 billion bd. ft. this year, down 25Vo from 2008. As markets start turning up in 2010, U.S. production will rise to22.4 billion bd. ft.

Poor markets have been even tougher on Canada and other foreign lumber suppliers. Lumber imports from Canada are predicted to total 7.6 billion bd. ft. in 2009, a decrease of 34.7Vo from the previous year. Since

2005, Canadian lumber imports have declined by nearly two-thirds, or some 14 billion bd. ft.

Other imports, including lumber from Europe and Latin America, should decline by double-digit percentages for the fourth straight year and lose more market share to domestic producers.

Weyco Opens Northeast DC

Weyerhaeuser has replaced its Bridgewater, N.J., ilevel service center with a new 100,000-sq. ft. facility on 30 acres in Easton, Pa.

Serving eastern Pennsylvania, central and northern New Jersey, and southern New York and Long Island, the DC provides increased storage capacity and streamlined logistics.

"We designed the Easton service center to deliver on the ilevel promise of providing cutting edge structural framing products and services to customers quickly and simply," says Craig McDonald, ilevel North Atlantic region manager. "It was built from the ground up with the dealer and builder in mind."

Von Tobel Buys Into Michigan

Von Tobel Lumber & Hardwnre, Valparaiso, In., has acquired Glenlord Honre Center. Stevensville. Mi., and the inventory of sister company Home Lumber. Crown Point. In.

The two yards closed April 18. with the Michigan loeution reopenittt iis Von Tobel's fifih yard-and first outsidc of Indiana. Former owner Joseph Bcckman is leasing the Stevensvillc tacility to Von Tobel ancl placed the now-vitcant Crown Point property up 1br sale.

Beckman. whose -great--tlreatgriir.rdfather founded Home Lumber in 1907. will serve as a consultant tcr Von Tobel and devote rnost ttf his time to charitable organizations.

Most of Horne Lumber's employees, including Beckman's son arnd daughter. havc relocated to Von Tobcl's Schererville yard.

Fires Destroy Texas Yards

Early morning fires destroyed two longtime Texiis lumberyards last month.

Danek Hardware & l,umber, Jarrell, was destroyed. despite bcing located next door to thc fire statittn. The blaze cluickly sprcad from the lumberyard to neighboring utility poles and linc, triggering an explosion that forced firefighters to temporarily pull back.

Diinek's 100-ycar-old building served as the stage for the city's rcecnt ('cntenniirl cc'lcbratrtln.

Three weeks carlier. on April 3. fire decimatcd Seadrift Lumber & Hardware. Seadrift.

"It's a total loss. I l0olc gone." said owner Eric Estes. "Nothing is left. bui lding ur inventory."

PlyGem Slashes Production

Ply Gcm Industries. Cary. N.C., has begun cclnsolidating productitln at several of its manufacturing facilities to improve efficiency and reduce operating cxpense by over $6 million a year.

Thc company will shifi the majority of production from its Kearney, Mo.. vinyl siding plant to its other three vinyl fircilitics. layin-u off 1,10. The Kearney plant will run on a limited basis until thc housing ntarket rcbounds.

PlyGem will close its Tupelo. Ms.. window ancl door manufacturing facility, which employs 23. ancl consolidate all window lineal production into its Rocky Mount. Va.. plant.

Production of its West Coast window and door facilities in Sacramento. Ca.. and Auburn. Wa.. will also be realigned.

Hardwood Co. Only Wholesale

Mid-America Hardwoods Inc., Sarcoxie, Mo., is converting its retail store into ii customer scrvice facility fbr its wholesale divisions.

Its products-fnctory-direct prefinished flooring, hardwood mouldings, and lumber-will now be sold through Meek's Lurnber's 30 rctail yards in Missouri and Arkansas.

Meek's yards have been adding a slew of new product lines of late, including fireplaces, kitchen cabinetry, Ruhbermuid cl()set ilnd garltge organization systems, stair parts, prefinished doors. and installation service..

Worker Killed At Planer Mill

A millworker at Spanish Trail Lumber, Cypress, Fl.. was fatally struck in the chest by a l2-ft.-long 2x4 after it was cjected from a planer mill.

Rufus Dudley.48. dicd at the scene March 26.

OSHA and the sheriff's office are investigating.

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