A deeper dive into the latest Bureau of Labor Statistics (BLS) nonfarm payroll employment report, with further analysis provided by the National Association of Home Builders, reveals that 49 out of 50 states and the District of Columbia experienced an increase jobs in March 2021. Alaska was the only state to shed employment and that was just 200 jobs.
Wood Markets News
Index of Consumer Sentiment up 1.9% Month-Over-Month in April and is 20.5% Higher Year-Over-Year
The University of Michigan released today (4-16-21) its preliminary Index of Consumer Sentiment (ICS) for April. Month-over-month the ICS rose 1.9% from 84.9% in March to 86.5% in April. When compared to April 2020, the ICS increased 20.5% or 71.8% to 86.5%.
Astara Capital Partners, LLC Acquires Majority Stake in Cross City Lumber
Astara Capital Partners, LLC (“Astara”) announced on Thursday (4-15-21), that it has acquired a majority stake in Cross City Lumber (“CCL”). Based in Cross City, Florida, CCL is a Southern Pine sawmill that produces specialty and dimensional grades of lumber. Astara leveraged its network of sawmill executives to source the opportunity and to underwrite a series of capital projects that will substantially increase the capacity of CCL and significantly reduce its breakeven point.
U.S. Housing Starts & Permits Move Higher in March
The U.S. Census Bureau has reported that privately‐owned housing starts in March were at a seasonally adjusted annual rate (SAAR) of 1,739,000. This is 19.4% above the revised February estimate of 1,457,000 and is 37.0% above the March 2020 rate. Single-family housing starts in March were at a rate of 1,238,000; and this is 15.3% above the revised February figure of 1,074,000.
Associated Builders and Contractors Construction Backlog Indicator Declines in March as Contractor Optimism Continues to Grow
Associated Builders and Contractors (ABC) are reporting that their Construction Backlog Indicator (CBI) dropped to 7.8 months in March, according to an ABC member survey conducted from March 22 to April 5 — a decrease of 0.4 months from both the February 2021 and March 2020 readings. ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased in March.
EACOM Timber Investing in New Continuous Dry Kiln for Elk Lake Sawmill
EACOM Timber Corporation, a major Eastern Canadian wood products company, which owns and operates seven sawmills, a remanufacturing facility, and an engineered I-joist plant, today announced it was investing $8.9M to equip its Elk Lake sawmill with a new, state-of-the art, continuous dry kiln (CDK). The CDK kiln is expected to be fully operational by early fall and will allow for continuous drying of lumber, reducing production bottlenecks and energy consumption.
Manufacturing Sales in Canada Supported by Increases in Wood Product Demand and Sales
Statistics Canada (StatsCan) is reporting that following the largest increase observed in seven months in January (+3.4%), manufacturing sales fell -1.6% to $55.4 billion in February on lower sales of transportation equipment. The declines were partially offset by higher sales in the petroleum and coal product, chemical, and wood product industries.
Paper Excellence Announces Permanent Closure of Mackenzie B.C. Pulp Mill
Paper Excellence has announced that due to its inability to access ‘economic fiber’, they intend to permanently close their pulp mill in Mackenzie, B.C. The closure of pulp and paper mills in B.C. has been predicted. The result of the permanent closure of several sawmills over the past several years.
Freddie Mac’s Economic and Housing Research Group Sees Lots of Positives in Current Economic Environment
Freddie Mac’s Economic and Housing Research Group is reporting that they are seeing lots of positives in the current economic environment. The company’s quarterly forecast points to the increasing availability of COVID-19 vaccines and the easing of virus-related restrictions, the passage of the American Rescue plan, and its cash stimulus for households as setting the stage for economic growth and sending consumer confidence to a post pandemic high in March.
Canadian National Homes Sales in March 2021 Set Another All-Time Record
According to the Canadian Real Estate Association (CREA), Canadian national home sales set another all-time record in March 2021 as an increased supply of homes became available. CREA is reporting that national homes sales increased month-over-month basis by 5.2%.