Recent news reports indicate that while some of the big players in the Canadian lumber industry are in a less vulnerable spot than they were a decade ago, some of the smaller producers in Ontario and Quebec may be particularly susceptible to duties expected in the coming weeks.
Head of the Quebec Forest Industry Council, Andre Tremblay, said that some of the big players in the West are in a more comfortable position now, such as B.C. lumber producers Canfor, Interfor, and West Fraser Timber who have purchased sawmills in the U.S. during a period when things were a bit friendlier between the two countries regarding softwood.
For the big players, softwood exports to China have increased while lumber producers in Ontario and Quebec missed out on shipments to China primarily because of distance. In 2016, China received $1 billion worth of softwood exports from Canada, the majority of the lumber coming from B.C. producers. Exporting lumber to China provides Canadian lumber producers with a certain degree of protection when it comes to U.S. tariffs that may be imposed within weeks, some say as early as May.
Experts claim sawmills in Ontario, Quebec, and throughout Central Canada are often smaller, and therefore lack the cash flow the bigger companies have to pay duties. This means these lumber producers are at a greater risk of being forced to close, which is why some are pressuring Ottawa to provide loan guarantees that would help them remain in business.
The U.S. Lumber Coalition wants to reduce imports of lumber from Canada, claiming this would protect the country’s forestry sector; at this time it isn’t clear whether Trump will fully support the group. However, the NAHB says about 8,000 American jobs would be lost if a 25% duty is placed on Canadian lumber.
REA JET Canada provides quality, reliable coding and marking systems for the lumber industry as well as many other industries. Our large character ink jet and high resolution printers are ideal for coding of construction lumber, OSB boards, wooden boards, stacks of timber, edge printing and more. Real solutions that meet demands in the lumber industry – trust REA JET!
Title
[…]Here are several of the web sites we suggest for our visitors[…]