On Tuesday (2-1-22), the U.S. Census Bureau reported that total construction spending during December 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,639.9 billion, 0.2% above the revised November estimate of $1,636.58 billion. The December figure is 9.0% above the December 2020 estimate of $1,504.2 billion.
Wood Markets News
Construction Job Openings Post Year-Over-Year Gains
A closer look at the construction sector portion of the Bureau of Labor Statistics’ (BLS) Job Openings and Labor Turnover (JOLTS) Summary for December, with further analysis provided by the National Association of Home Builders (NAHB), reveals that construction labor market remains constricted and the number of job openings continues to rise year-over-year.
Home Buyers Continued to Struggle as Real Estate Markets Remained Red Hot in January 2022
In a new report from Redfin, the Seattle-based, technology-powered real estate brokerage firm, homebuyers continue to struggle: 45% of homes are now selling within two weeks of being on the market. Of that number, some 35% of homes are going on contract in under a week. Both rates are the highest ever seen for this time of the year.
Real GDP in Canada Increases 0.6% in November — Now Above Pre-Pandemic Level
Statistics Canada (StatsCan) is reporting that real gross domestic product (GDP) increased 0.6% in November, following a 0.8% rise in October. Increases across almost all sectors have contributed to six consecutive months of growth. The increase brings the real GDP to 0.2% above its February 2020 level, prior to the pandemic.
Job Openings and Labor Turnover Summary Released for December 2021
On Tuesday (2-1-22), the U.S. Bureau of Labor Statistics published the Job Openings and Labor Turnover Summary (JOLTS) for December 2021. According to the JOLTS report, as of the last day in December, the number of job openings was little changed at 10.9 million. The job opening rate was unchanged at 6.8%, and the number of job openings was little changed in all regions.
U.S. Commerce Department Issues Preliminary Determination on 3rd Administrative Review of Certain Softwood Lumber Products Imported From Canada
The US Department of Commerce today (1-31-22) issued its preliminary determination in their Third Administrative Review of certain softwood lumber products from Canada. The new combined “All Others” rate of 11.64% is down from the current rate of 17.91%. This Preliminary Determination does not change the duties currently being collected, nor will it be the final rate.
Manitoba and LP Canada Sued by Pine Creek First Nation Over Duck Creek Forest Rights
According to a notice of application filed in a Manitoba courtroom on January 26, 20222, PCFN says the province has “failed to enforce critical conditions of Louisiana-Pacific’s forestry authorizations,” including logging in the area without a long-term forest management plan approved by the First Nation.
Newly Constructed Houses Make Up One-Third of All U.S. Homes Sales in December
According to a report released today (1-31-22) by Redfin, the Seattle-based, technology-powered real estate brokerage, more than one-third (34.1%) of U.S. single-family home sales in December were for new construction. This is the highest share on record and 8.7% above December 2020 reading of 25.4%. Newly built homes have taken up an increasing portion of U.S. housing inventory over the last 10 years, with a major acceleration in mid-2020 after the pandemic began.
New Partnership Will Allow Sans Group to Process Wood Waste into Value-Added Wood Products
Sans Group — which operates sawmills and remanufacturing plants in Port Alberni and on the mainland in B.C. — announced on Wednesday (1-26-22) that it has entered into a strategic lumber supply agreement with Seaton Forest Products, based in Smithers. The agreement allows San Group to process waste wood from Seaton into commodity grade lumber products.
Ireland’s Forest Crisis Continues to Grow
According to the Construction Industry Federation (CIF), Ireland’s forest industry remains in crisis. Delays in issuing licenses needed to plant, harvest, and transport trees to facilities for processing have been ongoing for over three years. The bottleneck is hitting house building, slowing the supply of timber and forcing many to import lumber. It has also contributed to the rise in the costs of new homes.