Latest News
Forestry Investment News
British Columbian forestry industry set for recovery
18/01/2010
According to the new five years forecast by Central 1 Credit Union, strong housing sales should result in a boost for the forestry sector in Canada's British Columbia region.
The report says that the recession in the region is set to be replaced by 2.5 per cent growth in the coming year, increasing to 4.2 per cent by 2013.
Construction is expected to be the main driver of this recovery, according to the report, which states, ‘A strong rebound in housing sales is driving higher housing prices and more investment in new construction.’ Low priced mortgages are expected to encourage more house purchases and therefore more house building – with the industry set to peak before 2014.
It adds that the construction boom will increase sales of timber and, therefore, timber prices in the region will also rise. The wood manufacturing industry in particular is expected to benefit from the increase in the construction sector.
Helmut Pastrick, the Union’s chief economist, says he expects forestry to recover well in light of greater demand for lumber for house building. He added, "forestry in percentage terms comes up at the top of the [recovery] list.”
The report says that the recession in the region is set to be replaced by 2.5 per cent growth in the coming year, increasing to 4.2 per cent by 2013.
Construction is expected to be the main driver of this recovery, according to the report, which states, ‘A strong rebound in housing sales is driving higher housing prices and more investment in new construction.’ Low priced mortgages are expected to encourage more house purchases and therefore more house building – with the industry set to peak before 2014.
It adds that the construction boom will increase sales of timber and, therefore, timber prices in the region will also rise. The wood manufacturing industry in particular is expected to benefit from the increase in the construction sector.
Helmut Pastrick, the Union’s chief economist, says he expects forestry to recover well in light of greater demand for lumber for house building. He added, "forestry in percentage terms comes up at the top of the [recovery] list.”
RSS