Canadian Lumber Industry Seeing Pickup In Aftermath Of Superstorm Sandy
By Eleazar David Meléndez | November 17, 2012 8:26 AM EST
The wreckage left behind by Superstorm Sandy in the wake of its passage late last month seems to be holding a silver lining for at least one industry.
Canadian lumber companies are rubbing their hands together in anticipation of a sharp boost in demand for their main product, which has already spiked in price as thousands across the Northeast United States seek to rebuild homes and businesses.
“When you look at the devastation it's mind boggling and it's going to have an impact,” Richard Garneau, the CEO of Resolute Forest Products told The Canadian Press earlier this month.
"They're going to have to rebuild but it always takes some time for the cleanup to be done so I think the impact on demand of wood consumption is probably going to materialize in the second and third quarter of next year with the rebuilding efforts,'' Garneau added.
Indeed, just days after the storm made landing, on Oct. 31, U.S. lumber futures hit a multi-year high. Lumber mills, which usually slow down or pause production during the winter months are seen as likely ramping up their manufacturing capacity.
Michael Gravelle, the Natural Resources Minister for the Canadian province of Ontario, told a local paper last week his government entity would be aiding mills that had closed down for the season ramp up production, and even suggested mills that had been shuttered earlier due to the bad economy might be making a comeback.
Canadian producers are seen as particularly well-poised to take advantage of the sudden demand boom due to that fact that according to Toronto’s The Globe and Mail, the fact wet weather conditions in the Southern United States are making large-scale forestry activities unfeasible at the moment.
And luckily for them, it won’t be a suddent boost that will go away quickly either.
"The widespread impact of the storm could increase demand for lumber over the next several months. With such devastation it could take a month or so for any rebuilding to start," Gary Vitale, president of the North America Wholesale Lumber Association, told Reuters.
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Typhoon Matmo Leaves 32k Customers w/o Electricity in Taiwan, Weakens After Landing in China
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales