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EWP Demand Moderates In 2006
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U.S. and Canadian Structural Wood Panel and Engineered Wood Production, 2005-2006
Softwood Plywood (million sq. ft.)
Oriented Strand Board (million so ft )
Easy Installation
100Y0 Clear All,Heartwood
Free of Unsightly Knots
Attractive Golden Color
Kiln Dried Stability
TOCKING DISTRIBUI-ORS
\I\[ERHART; \\'1, \I\-, IL, IA, Upper \11 92r'\,-16+.rr I7 l
BLUELINXI Ncrv England Strtr.ri )9-l itiS
CAPITAL LUNTBER CO.; Califirrnia
800.22 r,?67 I
CECCO SUPPLY; \\'I, IL tt66.ti95.2126
N{ID.ST{ TE LI. \IBERI NY, NJ, PA, CT, NtD, DE ti0r).9.12,7776
2005 acr-a 2006 'c'eca.: panels will be used to rebuild destroyed housing units over the next five to 10 years, with another 300 million ft. for nonresidential reconstruction. Reconstruction efforts are expected to peak about 2008.
Demand in the industry's other key markets is expected to help offset the leveling off of housing starts. The remodeling, industrial and nonresidential construction markets are forecast to generate 385 million ft. of additional demand this year, for a total of 20.13 billion sq. ft. Exports also are expected to rise by 31 million ft. to 558 million.
Softwood plywood and OSB imports, on the other hand, are finally expected to level off following several years ofincrease. Imports are forecast to total 2.58 billion ft., down about 5Vo from last year. Most softwood plywood imports come from Brazil and Chile, and most OSB imports from Europe. Reasons for the expected slowdown of imports include exchange rate shifts, rising transport costs, and, in the longer term, substantial new domestic production capacity.
The industry is expected to add some 10.7 billion sq. ft. of production capacity between 2006 and 201I, which will give rise to a growing demand-capacity gap unless new demand is created, some existing capacity is closed, or both. APA is developing a strategic plan to generate additional demand in key markets, including nonresidential construction, residential wall sheathing, and wood floors.
Rains Delay Sierra-Pacific
Due to unusually wet weather that made logging difficult, Sierra-Pacific Industries Inc. temporarily stopped production in early April at its mill in Anderson, Ca. About 4OVo of the 18year-old mill's 170 employees were affected, but most were back at work three weeks later.
Heavy rains made logging-access roads in the area unsafe for trucks, according to spokesman Ed Bond. Instead of receiving 100 loads a day-about 4,000 bd. ft. of timberthe Anderson mill was not getting anything. "You can see when you go from 100 to nothing, it's critical," Bond reiterated.
After the rains stopped, a stretch of dry weather allowed the roads to dry sufficiently. "Weather is the defining factor here." said Bond.
With nearly 2 million acres, SierraPacific is the largest owner of private forestland in North America. Last year, SPI's 13 sawmills-12 in California and one in Washington-produced close to 2 million bd. ft. of lumber.
Other mills in the area weren't as affected because they don't log their own timber. "We just have to buy more inventory. Fortunately, it hasn't affected us," said Dee Sanders, general manager of Trinity River Lumber Co., which has a mill in Weaverville. "[SPI is] a big company that owns a lot of land."
