GLOBAL MARKET Continued
GLOBAL MARKET Continued will have some economic growth. Vietnam is never going to compare to China. It doesn’t have anywhere near the population to begin with and we harp on it, but a main reason why China was so important for us isn’t so much the reexport manufacturing. It’s the Chinese consumption of the furniture, and the flooring, and the finished products made with the American Hardwoods. I think when we start looking at Vietnam there is room for growth. We only have about a 13 percent market share, which includes both tempered and both Hardwood and softwood.” Take North America, Mexico, Canada, China, Vietnam - the four biggest out of the equation - and the next market is Japan, said Snow. However, they are seeing an economic slowdown currently like the rest of the world. The next market to consider is the UK, commented Snow. “The UK has really exploded since 2013. In 2020 for the first half of the year, of course, the UK has been one of the harder hit countries from the pandemic. But we are seeing some optimism with the timber trade in the UK. Elsewhere, in Germany the first half of the year we actually saw an increase which is interesting, and we saw an increase in Denmark as well. Spain, we saw a little bit of an increase this year.” “So again – in Europe – it is kind of a mixed bag,” 5 Snow explained. “Another relatively good news story is Australia. The trajectory overall has been very positive. But what is surprising I think given COVID’s impact is that we are seeing an almost 20 percent increase by volume of other American Hardwoods and almost all of that is because of an increase or spike in Red Oak.” Snow also addressed the markets in South Africa, the Middle East and Brazil. “It’s a different situation in South Africa,” he said. “I know it is a very small market volumewise, but they have absolutely been handicapped by the pandemic. Additionally, over in the Middle East, they have been devastated by the pandemic. “Brazil – is as I am sure everyone is aware of – along with the United States and probably India, is the country that is suffering the most right now from the pandemic, which is having the most impact on its economy and it is not just lumber. When we look at what they buy in South America, Brazil – besides being an important lumber market or the largest in South America – it is a fairly significant veneer market as well. Brazil is really the main game in South America. 34 OCTOBER 2020 n NATIONAL HARDWOOD MAGAZINE
“Lastly, India, unfortunately in 2020 so far I think all 6 bets in a market there are pretty much off because of the impact the pandemic is having on the Indian economy,” Snow surmised. Snow wrapped up the webinar by reviewing for members remaining activities AHEC will undertake this year. The American Hardwood Export Council is the leading international trade association for the U.S. Hardwood industry, representing the committed U.S. Hardwood exporters and the major U.S. Hardwood product trade associations. From Washington, DC and six overseas offices, strategically located near key Hardwood markets, AHEC conducts a worldwide promotion program with activities in more than 35 countries. n Learn more at www.ahec.org. OCTOBER 2020 n NATIONAL HARDWOOD MAGAZINE 35
