Sandy boosts demand for NB lumber
A forest industry observer predicts New Brunswick mills will see strong demand for their lumber for the next four to five years.
Mark Kennedy, a forest products analyst with CIBC, told CBC.ca that housing construction in the United States is finally turning around after four dismal years.
He expects damage in the northeastern United States from superstorm Sandy will continue to bolster demand, which is good news for the province’s forestry industry, which employs about 10,000 people.
“It’s probably going to take the better part of a month to six weeks for that demand to really start showing up, but basically there is an awful lot of repair and renovation-type work to do,” said Kennedy.
“I suspect … what we will see happen is that people who have to do repairs to their homes might also decide to do some extra renovations they’ve been thinking about anyway. And so that all just continues to add to lumber demand here on the margin.”
New Brunswick exports about 80 per cent of its finished wood products to the U.S.
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