National Hardwood Magazine - July 2021

QUEBEC Continued from page 47
occurs during a home buy, beyond a house and land.
Paint, furniture, moving fees, legal fees, and other things
are spin-off activity. On the positive side, this activity is
a significant part of the total economy. CREA estimates
the average home resale generated $55,122 in spin-off
economic activity. This gives a big boost to the economy
when home sales rise. If home sales fall, it withdraws
some of that activity as well, leading to excess capacity.
This year is seeing a huge benefit from higher home
sales. However, next year’s falling forecast shows it may
be a drag on the economy.
The dollar value of spin-off economic activity reached
a new record high last year. The estimate comes in at
$36.27 billion for 2020, up 13.33 percent from the year
before. That’s on top of the 6.06 percent increase 2019
made on 2018’s activity.
Using the CREA home sale forecast, numbers should
be higher, even as sales slow. The estimate works out
to $46.42 billion in 2021, up 27.99 percent higher than a
year before. If the year hits projected economic growth,
just the spin-off economic activity would be 1.91 percent
of GDP. There’s a large dependence on real estate,
when the spin-off of higher home sales, prints 0.4 more
GDP points.
The CREA forecast for next year shows things will calm
down a little, cooling spin-off. The estimate is $40.57 billion
in 2022, down 12.60 percent from the 2020 estimate.
This is all good news for the Hardwood industry as consumers
will continue their strong demand for Hardwood
products. n
NEWS DEVELOPMENTS
Continued from page 11
organizations permanently conserve working forests that
benefit communities.
Forest Service awards will leverage an additional $30
million in matching and partner funds bringing the totals
well above $45 million.
“To manage wildfire and address climate, we need to
manage our forests. Today’s investments underpin US-
DA’s commitment to address the climate crisis with a
market-based approach that begins to move us toward
a clean energy economy, led by production of renewable
fuel and energy and biobased products grown and manufactured
here in the U.S.,” said Vilsack. “The American
Jobs Plan and USDA’s budget request for 2022 make sure
the Forest Service can prioritize forest management and
restoration.”
For more information, go to www.usda.gov.
U.S. HOMEBUILDING FELL IN APRIL,
ACCORDING TO LATEST DATA
U.S. homebuilding fell more than expected in April, the
latest data available, collected by Reuters, likely pulled
down by soaring prices for lumber and other materials, but
construction remains supported by an acute shortage of
previously owned homes on the market.
The plunge in homebuilding reported by the Commerce
Department was concentrated in the single-family housing
market segment. The number of houses authorized
for construction but not yet started increased to the highest
level since 1999, suggesting hesitancy on the part of
builders.
Housing starts tumbled 9.5 percent to a seasonally adjusted
annual rate of 1.569 million units last month. Data
for March was revised lower to a rate of 1.733 million units,
still the highest level since June 2006, from the previously
reported 1.739 million units. Economists polled by Reuters
had forecast starts would fall to a rate of 1.710 million units
in April.
Starts surged 67.3 percent on a year-on-year basis in
April. Groundbreaking activity dropped in the Midwest and
the densely populated South, but rose in the Northeast
and West.
The inventory of previously owned homes is near record
lows. Tariffs on steel imports are also adding to building
costs. Lumber prices surged 89.7 percent on a year-onyear
basis in April, according to the latest producer price
data.
A survey from the National Association of Home Builders
recently showed confidence among single-family homebuilders
holding steady as recently as May. The NAHB
noted that “some builders are slowing sales to manage
their own supply chains.”
Single-family homebuilding, the largest share of the
housing market, dropped 13.4 percent to a rate of 1.087
million units in April. It retreated further below the more
than 14-year high scaled in December, a sign that builders
could be holding back because of the more expensive
materials and lack of labor.
NWFA PROVIDES FLOORING FOR CUSTOM
HOME FOR WOUNDED VETERAN
The National Wood Flooring Association (NWFA), located
in St. Louis, MO, has provided flooring for its 55th
home in support of the Gary Sinise Foundation R.I.S.E.
program (Restoring Independence Supporting Empowerment).
The R.I.S.E. program builds custom, specially
adapted smart homes for severely wounded veterans and
Please turn to page 56
Contact:
Mike Tarbell, Sales Manager
Rus Gustin
(814) 697-7185
FAX (814) 697-7190
25,000,000 BF of Quality Bandsawn Pennsylvania Hardwoods
1,500,000 BF Kiln Capacity
Export Packaging & Container Loading
SPECIALIZING IN ASH, RED OAK, HARD MAPLE and CHERRY
“We welcome your inquiries and look forward to serving your needs.”
Mailing Address
1716 Honeoye Road
Shinglehouse
PA 16748
E-mail: mtarbell@ramforestproducts.com
KENTUCKY
WOOD EXPO
September 17 & 18,
2021
Make plans to participate in the 34th Kentucky
Wood Expo, the two-day event is designed to
accent the forest products industry. The show
will attract loggers, sawmill and pallet operators,
manufacturers of forest products and related machinery, retailers and wholesalers, and consumers of wood
products.
Outdoor & Indoor Exhibits ~ Equipment Demonstrations ~ Lumberjack &
Logging Contests ~ Chain Saw Carving ~ Forestry Education ~ Wood Crafts
Masterson Station Park, Lexington, KY
kywoodexpo.com | 502-695-3979
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