Lumber in demand, problems for B.C. industries
By Vancouver Sun
May 10, 2013, Vancouver, B.C. – The wood products industry in British Columbia is facing problems from the sudden demand and rising prices of its products.
Forest companies that are recovering from seven poor years in the industry, now have to meet the demands of China and the U.S.
“It’s a different landscape,” said Michael Vermette, PwC partner. For the last seven years, Vermette said he has been busy handling receiverships and restructurings in the industry. Now he is helping companies prepare for the market upturn.
The eight Canadian forestry companies that have reported first-quarter results have shown earnings of $156 million, compared to a $36-million loss one year ago. The positive results come at a time when U.S. housing starts are still moving below a million starts a year. The long-term average is about 1.5 million starts a year.
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