Beware upside risk of U.S. housing
According to Forbes, 2013 should offer good demand for wood products, although there is an upside risk – that housing recovers even faster than analysts are currently expecting.
The market should see improvement from U.S. usage though U.S. exports will remain soft. As usual, risks bear considering, including a possible recession in the United States, and continued slowing in China.
Author Billy Conerly, says “If I were a betting man, I’d rather be long on wood than short, but there remain risks. The greatest risk facing the United States economy is a recession triggered by the European financial crisis.
Business leaders in the industry should be prepared for another risk: stronger-than-expected demand. It sounds good, but unplanned growth presents challenges. Suppliers may not be ready to deliver raw materials, cash holdings may be stretched be the need to pay bills before revenue is received, and skilled workers may not be readily available. It’s certainly worth some economic contingency planning.
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