Resolute Forest Products held a groundbreaking ceremony to mark the start of construction on a new planer mill that will be next to its Senneterre, Quebec, sawmill facility. Plan to modernize were initially announced in July 2021 and also include the installation of automated sorting bins.
Wood Markets News
Canadian Investment in Building Construction Continued Its Upward Momentum in July
Statistics Canada reported today that investment in building construction continued its upward trend which commenced in October 2021, increasing 0.8% to $21.0 billion (CAD) in July. Both the residential sector and non-residential sector posted increases.
Consumer Price Index Increases 0.1% in August; Year-Over-Year All-Item Index Up 8.3%
The US Bureau of Labor Statistics reported on Tuesday that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in August on a seasonally adjusted basis. Over the past 12 months, the all-item index has increased 8.3% before seasonal adjustment.
Mortgage Credit Availability Declines for Sixth Consecutive Month in August
According to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI), mortgage credit availability declined for the sixth consecutive month in August. The MCAI declined 0.5% to a reading of 108.3 in August. The Conventional MCAI decreased 1.0%.
The NFIB’s Small Business Optimism Index Rises 1.9% in August
The National Federation of Independent Business (NFIB) reported today their NFIB Small Business Optimism Index (SBOI) for August 2022. The August SBOI increased 1.9 points to a reading of 91.8; however, it is the eighth consecutive month that the SBOI has been below the 48-year average reading of 98.
Two Wood Product Expansion Projects Coming to Dothan, Alabama
SmartLam North America has announced it will be investing $62 million to build a new 140,000-square-foot custom manufacturing plant with the capacity to produce 84 million board feet annually. SmartLam will also be adding equipment to fully automate its existing 225,000-square-foot facility.
Three More Unions Reach Tentative Agreements with US Class 1 Railroads; Four Others Continue to Negotiate
The National Carriers’ Conference Committee (NCCC), which represents the US freight railroads, announced on Sunday that three more railroad unions have reached a tentative agreement on a new labor contract with the NCCC. In total, eight unions have now accepted tentative deals.
EU Parliament to Decide Fate of Biomass Subsidies in Pending Vote
Part of the European Union’s renewable energy directive, the biomass amendments, will be subject to a plenary vote in the European Parliament on Wednesday. Three of the European Parliament’s largest political groups have backed the proposal to end subsidies for biomass used in power plants and exclude primary wood burning from the EU’s renewable energy targets.
Lot Values Set New Record Levels in 2021
According to the US Census Bureau’s Survey of Construction, lot values for single-family detached housing starts in 2021 increased across the country, with the national value in six out of nine Census division setting new records. The US median lot price now stands at $55,000.
Canadian Employment Declines and Unemployment Rises in August 2022
Statistics Canada reported on Friday that employment fell by 40,000, or 0.2%, in August, bringing the cumulative decline since May 2022 to 114,000, or 0.6%. StatsCan notes that the decline in employment since May has been primarily in full-time work.