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Softwood Lumber Industry Prepares for Boon
Last year was one of incredible growth for the building products industry and 2018 looks to carry that momentum forward. This growth has been contingent on the success of several subindustries that compose the building products industry, and no subindustry may be more primed for success than the domestic softwood lumber industry. From an increased demand of specific softwoods and softwood products to legislative avenues that have paved the way for economic opportunity, there are a number of converging factors that seem to indicate that organizations within the softwood lumber industry should be preparing themselves to capitalize on dynamic growth.
Facility Expansion
One of the biggest names in the softwood lumber industry, Georgia-Pacific, has recently announced plans to construct a $135 million dollar facility in Warren County, Georgia. This facility would eventually replace an existing mill near the site, bringing heightened production technologies as well increasing the workforce of the site by as much as 30 percent. Georgia-Pacific has clearly read the vitals of today’s softwood lumber industry and has chosen to take hold of the opportunity and grow and develop their facilities. This increased investment, not only in infrastructure and technology, but also in people indicates an optimistic outlook for softwood industries.
The Sustainability of Cedar
There is no denying that, with numerous factors affecting production and supply within the softwood lumber industry, a certain level of volatility is expected. What has been especially encouraging over the past few years is the trend of consistency and sustainability for the supply of cedar, which is especially important as we have also witnessed an increasing demand for cedar and cedar products. With growing popularity in siding, decking, outdoor structures and fencing, cedar is enjoying a much deserved boost in demand. What is especially important for domestic suppliers and producers in the cedar industry to consider is the impact certain duties and tariffs may have on imported cedar, further increasing the viability of the domestic cedar market.
US Softwood Lumber Tariff
With increased tariffs on softwood lumber from Canada, legislation has effectively helped provide an advantage to the domestic lumber industry and, no doubt, been a driving force behind the growth and success of companies like Georgia-Pacific. This is an enormous opportunity for American-based softwood lumber organizations. With what appears to be a genuine commitment to the viability and sustainability of the domestic building products industry, this action, while profound in its own right, could also signal even larger and more impactful legislative victories for American building products companies.
As signaled by Georgia-Pacific, now is not just the time to grow and expand facilities and technology, but it is also the time to grow human capital. As growth in the building products and, more specifically, the softwood lumber industry continues to accelerate, there is expected to be an increased demand for industry-leading talent. With Davalyn Corporation’s longstanding reputation, we already know your competitors and, more importantly, we already know where to find the most outstanding passive talent that you will never find on your own. The fastest growing and most successful organizations understand that the sooner they acquire top talent, the sooner they can maximize their ability to capitalize on this bull market in the softwood lumber industry. If your organization is eager to get out in front of the competition, contact Davalyn today to find the talent you need to grow faster.
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