Big Lumber Producers Get Even Bigger

U.S. and Canadian softwood lumber producers notched modest gains in 2013, as lumber demand continued to rise in the U.S. and in key export markets, according to Wood Markets' annual survey of the Top 20 manufacturers.

U.S. softwood lumber shipments increased 5.1%o to 30.0 billion bd. ft.. while Canadian production rebounded from minimal gains in 2012 to record an increase of 4.O7o to 23.5 billion ft.

The output of the top 20 U.S. companies rose strongly: from 16.6 billion bd. ft. in 2012 to 17 .9 billion ft. in

2013, up 8.27o. As a result, these 20 increased their marketshare of U.S. production from 587o to 6OVo. The five largest- Weyerhaeuser, Sierra Pacific, Georgia-Pacific, West Fraser (U.S. operations), and Hampton Affiliatesproduced nearly 10.0 billion bd. ti., or 33Vo ol total U.S. production.

Of note, all regions in the U.S. recorded production increases in 2013, with the U.S. West leading the surge in output with a gain of 6.lVo. The U.S. South increased 5.17o.

Corporate acquisitions were again a big part of the story, as the Canadian buying frenzy continued in the U.S. South. More than 25 mills in the South have been purchased by Canadian firms since the mid-2000s.

The top 20 Canadian companies increased their marketshare of total Canadian lumber shipments, rising from 19.87o in 2012 to 80.5qo in 20 I 3. Canfor retained its leading position as the top Canadian lumber manufacturer, increasing production by 97o to 4.2 billion bd. ft.

West Fraser held onto the number two spot, upping output by 3Vo to 3.6 billion bd. ft. Tolko and Resolute Forest Products remained in the number three and four spots, while Interfor leaped into the number five spot from production gains at its B.C. Interior SPF mills. Together, these five firms produced a total of l2.l billion bd. ft. (5l%o of Canadian lumber shipments, as in 2012). B.C. Interior sawmills continued to struggle with processing dead logs from mountain pine beetlekilled timber. (Canfor and West Fraser both announced mill closures for the first half of 2014.)

With prospects of steady to stronger lumber demand and prices through most of 2014, Wood Markets expects producers to step up efforts to increase capacity, by adding shifts, reopening closed mills, expanding exis(ing facilities. or acquiring new ones.

"Sawmill companies continue to gear up for the potential of a lumber 'super-cycle'that is expected as early as 2015, but more likely 2016," noted the report.

Salvage Company Opens Reclaimed Wood Showroom

Reclaimed wood specialist Pioneer Millworks, Farmington, N.Y., opened its first showroom, in Portland, Or.

The new studio showcases salvaged timbers, framing, siding, paneling, trusses, countertops and custom millwork, and provides a home base for Pioneer's West Coast sales staff. It has a large sample area, conference room, customization booth, and offices.

"We're excited to have a space where folks can be hands-on with our reclaimed products and experience the latest and greatest in finishes, textures and applications," said general manager Jennifer Young.

Added Northwest sales rep Abby Mages: "We're really happy to have a central location where we can share an abundance of samples and customize pieces on-demand."