Structural panel and EWP demand to grow

tTt"t sLow-BUT-sreaov improveI ment in the housing market is expected to boost demand for engineered wood products throughout 2072, according to estimates by APAThe Engineered Wood Association.

U.S. housing starts are forecast to increase l5Vo in 2012 to 700,000 units. As a result, and for the first time in several years, all of the major end-use markets for wood products are expected to move in concert and increase this year. In addition to growth in housing, demand is expected to grow in repair and remodeling, nonresidential building construction and industrial uses, as well as exports to Asia, Mexico and the Caribbean.

"There is a little more life to engineered wood demand this year. Last year, we were just treading water," said Craig Adair, APA's market research director. "This year, we're expecting demand to pick up ftom 47o to IIVo, depending on the product."

Although the Great Recession in the U.S. ended in mid-2009, the recovery has been uneven and only now is the U.S. economy showing signs of sustainable growth. Adair noted that single-family housing is still plagued with several obstacles, including banks that are reluctant to lend and more foreclosures on the way. Single-family construction is expected to improve in 2012,but it should have a more meaningful recovery in2013.

"It may not be a lack of consumer demand that's holding housing back; it's more likely a financial system that currently doesn't freely accommodate residential mortgages, and it could take years to repair and reorganize the system," Adair said. Meanwhile, the demand for rental housing is so great that apartment construction has picked up, along with a wave of investment in existing single-family rental housing.

EWP, Panel Output Grows

Demand and production of North American structural panels and engineered wood products are expected to grow in 20 12. Structural panels are forecast to increase 1Vo in 2Ol2 as all end-use markets demand more volume. Overall, structural panel production is forecast at 28.0 billion sq. ft. in 2012.

The outlook for glulam timber is better in 2Ol2 than in 2011 because both residential and nonresidential construction are forecast to increase. North American production is forecast at 213 million bd. ft. in 2012, a 5Toincrease from 2011.

I-joist market share is forecast to increase modestly in 2012 to 53Vo of raised floors. As the housing market improves, I-joist market share is expected to grow steadily. The forecast for 2Ol2 is an ll%o increase to 509 million linear ft.

In the structural composite lumber family, laminated veneer lumber production is expected to follow the demand for beams and headers, rim boards and I-joist flanges. Production is forecast to increase 4Vo in 2Ol2 to 43.4 million cu. ft.

Additional market details and historical data are contained in APA's 2012 Structural Panel & Engineered Wood Yearbook, availabTe for $250 at www.apawood.org.

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