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APA releases 2023 Structural Panel & Engineered Wood Yearbook

U.S. reduces holdings of long-term financial securities, influencing construction market outlook

May 11, 2023  By APA – The Engineered Wood Association

The 2023 Structural Panel & Engineered Wood Yearbook has been released by APA – The Engineered Wood Association. The Yearbook includes an analysis of the U.S., Canadian and global economies, focusing on factors that impact demand for engineered wood products across several market segments as a basis for forecasting expected production of engineered wood products. In addition to the analysis and forecast, the Yearbook also includes historical data on engineered wood production. Topics examined include:

  • Outlook and production statistics for structural panels (oriented strand board and plywood), including historical data
  • North American imports and exports
  • Residential construction in the U.S. and Canada (new and repair/remodel)
  • Nonresidential and industrial markets
  • Engineered wood product demand and production (glued laminated timber, I-joists and laminated veneer lumber)

Outlook 2023

The policy priority of central bankers in the U.S., Canada and Europe is to take steps they feel are needed to bring inflation down to a sustainable rate of two per cent. Hence, they remain on a path of tightening monetary policy by raising their short-term policy rates and reducing their holdings of various long-term financial securities. This means the rate on a 30-year fixed-rate mortgage will remain above six per cent through the rest of 2023.

The affordability challenge arising from the more than doubling in mortgage rates over the course of 2022 is evident in weaker home sales, both new and existing. Single-family starts are projected to be near 800,000 in 2023, down 20 per cent from 2022. A record number of multifamily units are still under construction and raise concerns about returns on rental housing. This points to multifamily starts being down at least 10 per cent in 2023 compared to 2022.

The entire 2023 market forecast, including all market segments and production outlook, as well as statistical data, is included in APA’s 2023 Structural Panel & Engineered Wood Yearbook.


Fore more info: www.apawood.org.

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