Lumber boom springs back in Nova Scotia

Rubber and Wood  |  2014-06-03 03:30:04   |   By

Nova Scotia lumber industry is rebounding, thanks to the improved US housing data and the superior demand from the Asian countries

HALIFAX (Scrap Monster) : Nova Scotia lumber industry is rebounding, thanks to the improved US housing data and the superior demand from the Asian countries.

Nova Scotia’s lumber industry was in slumber for almost six years. Lack of demand for their products and diminishing prices forced many a mill to closures. Only a few mills that implemented drastic cost cutting measures survived. The labor workforce has been reduced considerably. Many companies are reported to be operating on minimum labor task force.

The rebound started late last year and has continued its run this year too. The forecasts say that the lumber industry boom may stay here in 2014 and 2015 too. The encouraging US housing data and the growth in demand for lumber products from Asian countries have given a new life to the industry.

After several months of dismal figures, the US house starts have recently shown signs of recovery. The recently released statistics indicate that more homes are being constructed as the demand for new homes are seen increasing.

The domestic demand is well augmented by improved demand growth from Asian region. The Chinese demand is expected to grow sharply by more than 70% by 2015.

The prices of lumber are on the rise and are presently at their eight-year highs. The uptick in demand may drive the prices higher, bringing in good times ahead for the Nova Scottish lumber mills.

Finally, Lumber seems to be out of slumber!