Canada's Wood Products Industry to Lose $750 Million Again in 2008



    OTTAWA, June 11 /CNW Telbec/ - Canada's wood products industry is
expected to lose money for the second consecutive year in 2008, according to
the Conference Board's Canadian Industrial Outlook: Canada's Wood Products
Industry - Spring 2008.
    "2007 will be remembered as one of the most difficult years for Canada's
wood products industry, with business conditions resembling a bad horror
movie," said Valerie Poulin, Economist. "Last year, B.C.'s mountain pine
beetle infestation, softwood lumber export taxes, the strong Canadian dollar
and the collapse of the U.S. housing market led to a loss of $750 million."
    This year's bottom line is not expected to be any better for wood
producers, who face declining production and prices, due largely to weak
American demand. With 80 to 90 per cent of wood exports going south of the
border and home construction activity in the U.S. expected to fall again this
year, the industry is expected to lose another $750 million in 2008.
    A partial recovery in the U.S. housing market-expected late in 2009 or at
the beginning of 2010-should trigger a modest increase in production. This
production gain, combined with improved labour productivity, should allow the
industry to return to profitability in 2009. However, profit margins will
remain slim.




For further information:

For further information: Brent Dowdall, Media Relations, (613) 526-3090
ext. 448, corpcomm@conferenceboard.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890