National Hardwood Magazine - July 2021

ONTARIO Continued
WORMY CHESTNUT • TROPICALS • QTR & RIFT • CYPRESS • ALDER
Headquarters, Concentration Yard & Kilns in Hickory, N.C.
Phone (828) 397-7481 FAX: (828) 397-3763
www.cramerlumber.com
3 million BF KD
Inventory
Atlanta, GA
Warehouse
770-479-9663
Hardwoods • White Pine • Cypress
RGH • S2S • SLR1E
With the demand being high, and the ability to produce
all species lagging this demand, one wonders how long
the market can sustain this level of activity, and how high
prices will go. Some forecasters report this trend will continue
well into 2022.
According to Statistics Canada’s May 12th report,
which is the most current data available at the time of
this writing, total investment in building construction increased
5.9 percent to $18.6 billion in March, led by the
residential sector. On a constant dollar basis (2012=100),
investment in building construction was up 5.2 percent to
$14.3 billion in March.
Residential construction investment increased for the
eleventh consecutive month, up 7.6 percent to $14.0 billion
in March. Investment in single units jumped 10.7 percent
to $7.8 billion. Quebec led the way with an increase
of 30.4 percent, bringing investment in single homes to
$1.9 billion for the province. Investment in Ontario was
up 9.8 percent to $3.3 billion, driven by renovations to
single family homes in the census metropolitan area of
Toronto.
Growth in multi-unit construction continued, up 3.9 percent
to $6.2 billion. Gains in Quebec and Ontario led the
overall increase in this component, as six provinces reported
declines. Both new construction and renovations
of condominiums and apartments in the cities of Toronto
and Montréal accounted for most of the growth.
Non-residential construction investment rose 1.1 percent
to $4.6 billion in March, with all components posting
slight increases. Despite this gain, the commercial
and industrial investment components were below pre-
COVID-19 pandemic levels.
Institutional construction investment was up 2.2 percent
to $1.2 billion. Multiple high-value projects in Montréal
contributed to a 2.6 percent increase in Quebec,
where investment totalled $315 million in March. Investments
in the province included a new elementary school
in Laval and renovations to a secondary school in Montréal.
British Columbia recorded another strong month in
March, with the continued construction of new schools in
Burnaby, North Vancouver and Vancouver.
Commercial building construction rose 0.8 percent
to $2.6 billion. Six provinces recorded slight gains, led
by Ontario and Alberta. Large office building renovation
projects in Edmonton and Calgary contributed to the 1.7
percent gain in Alberta in this component.
Investment in industrial construction edged up 0.4
percent to $823 million as recently as March. Increases
in Ontario, British Columbia, Prince Edward Island and
Quebec offset six provincial declines. n
“LIMBO”
The Lumber Rule
4/4 thru 16/4
thicknesses
Export
Sales
706-736-2622
HICKORY • HARD & SOFT MAPLE • POPLAR • RED & WHITE OAK • WALNUT • ASH
WHITE PINE • BASSWOOD • BEECH • BIRCH • CEDAR • CHERRY
QUEBEC Continued from page 8
U.S. RV industry for this species, and demand in that
country has been strong due to new home building and
renovation markets. Kiln-dried business is fuelling green
lumber price increases, noted contacts.
Secondary manufacturers and wholesalers are keeping
Basswood demand up, along with exports to the Far
East. With warmer weather upon us, less Basswood is
being cut; supplies are not quite meeting demand, and
prices are edging up.
Cherry demand has been very strong in the past several
months, with sawmills moving
production at steady to higher prices
here and in the Appalachian Region.
Exports to China continue to
be strong but are showing a slight
slowdown.
Flooring manufacturers are seeking
more Hickory for both domestic
and export markets. Prices are rising
for this species, and sawmills
are struggling to produce sufficient
supply.
Exports of Red Oak to China continue
to be strong, yet have started
to slow down, reported contacts. Demand
on domestic markets is good
as well, with firm pricing for many
grades and thicknesses of kiln-dried
Red Oak.
Business is strong for White Oak
according to sawmills and drying
operations. Flooring manufacturers
are the main requester at this time.
Demand is also coming from other
end users in Canada and the U.S.,
Asia and Europe keeping demand
high and in short supply. Prices are
moving upwards as a result, even at
record levels.
Market demand is also very strong
for Poplar to millwork, furniture and
moulding companies. Contacts noted
that exports are limited by supply
rather than by demand. Sawmills
have increased production of this
species, and markets are readily absorbing
it. Prices are on the rise for
this species as well.
There are brisk sales of pallet stock
with low to marginally adequate pallet
cant and lumber supplies. Rail
shipments are trending up. The need
for track maintenance is increasing, including black tie
installation.
The Canadian Real Estate Association (CREA) forecast
big 2021 home sales, but the second half will be
slower than the first. CREA sees a less exciting, but more
typical year for sales next year. Using their estimates of
spin-off economic activity from each home resale, this
year’s economy will get a boost. For next year, they see
the spin-off will be a drag on economic growth.
Spin-off economic activity is secondary spending that
Please turn to page 50
Quality Appalachian Hardwood Lumber
900,000 B.F. Kiln Capacity
Quentin Moss, KD-Lumber Sales/
GR-Lumber Sales/Purchasing
quentin@gfhardwoods.com
Joey Dyer, GR-Lumber Purchasing
joey@gfhardwoods.com
9880 Clay County Hwy. Moss, TN 38575-6332
PHONE: 1-800-844-3944 FAX: 1-931-258-3517
www.gfhardwoods.com
46 JULY 2021 n NATIONAL HARDWOOD MAGAZINE JULY 2021 n NATIONAL HARDWOOD MAGAZINE 47