2021 has not been an easy year, especially for the forestry industry. After a price increase at the start of the year and a drastic drop in the summer, it is now on the rise again. And that’s without counting the softwood lumber dispute with the United States, which continues to give headaches to Quebec and Canadian companies.
While the price of the 2 × 4 started the year at $ 1,100 per thousand feet to hit $ 2,000, it slumped to as little as $ 500 in August. For consumers, this relief will have been short-lived, as 2022 will be marked by a return to the rise.
“In 2021, the demand for renovation has quadrupled. It was a historic record for construction. Especially since the prices were at a stratospheric peak. It had taken 12 months for it to hit $ 2,000, but only two months for it to come down to $ 500. It’s unheard of, ”says Jean-François Samray, President and CEO of the Quebec Forest Industry Council (CIFQ).
Timber conflict
The economic conflict with the United States, which has lasted for 40 years, persists despite the arrival of Joe Biden. Washington has just announced its intention to double the tariffs on imports of Canadian lumber for 2022, which will drop them from 9% to 18%.
At the same time, the United States is running out of wood and cannot sufficiently meet the demand for new construction.
“There is a shortage of wood in the United States. They are behind by 6 million houses to be built. However, some players bring their wood from Europe rather than here. This is nonsense, since the production chains are very well integrated between the two countries. We have equipment suppliers who are on both sides of the border. “
Saguenay – Lac-Saint-Jean
Jean-François Samray underlines that the year has been rather positive for the region, in particular with investments of $ 50 million at the Arbec plant in Ascension, the resumption of production at the Nordbord plant in Chambord as well as investments of $ 7 million at the Scierie de Petit-Saguenay.
However, as in many sectors of the economy, the labor shortage affects the industry. However, the CEO of CIFQ remains optimistic.
“There are about 25% of the workforce to fill. Several initiatives, including the Collective for a sustainable forest, seem to be bearing fruit. It greatly stimulates interest in training in the forestry sector, particularly at CEGEPs and universities, ”he concludes.
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