Building Industry Magazine - April 2011 - (Page 34)

Lumber & Wood: Still Growing Strong BY JUDITH SHINSATO While the lumber and wood market is still feeling the pinch of the past few years, this still cannot diminish the material’s many inherent advantages, such as its natural beauty and warmth as well as its multifaceted uses. Framing the Facts First, here’s a snapshot of the national and local forest, so to speak. Although many have glimpsed the proverbial light at the end of the tunnel, for the lumber and wood market, the picture is similar to that of 2010. “No significant change is being forecast for sawn lumber demand in 2011 over 2010 due to housing starts not showing any signs of increase,” says Jeff Browning of Oregon-based lumber shipper Sause Bros. and current president of the Hawaii Lumber Products Industry (HLPA). “This will probably result in Western mills being forced to consider curtailments in order to reduce production to keep supply more in balance with demand and keep prices stable. One factor that could affect this, however, is that many large distribution yards are running very lean on inventory and if any step in with a large position, prices could climb due to decreased production.” Adding a local point of view, Mike Fujimoto, president and CEO of HPM Building Supply, explains, “Since single-family homes use more wood than multifamily homes, a key indicator of future wood product demand is single-family permits. Unfortunately, there is a 4.8 percent 34 | buILDINg INDustRY | APRIL 2011 decline from December. Additionally, most national economic advisors are revising their housing forecasts down to an average of 688,000 starts for 2011 from 715,000. Forecasts are being revised downwards because of high levels of unsold inventory, mortgage delinquencies, foreclosures, declining house prices, high unemployment and low consumer confidence. That said, we are seeing slight signs of improvement here in Hawaii and some suppliers in the Northwest are seeing slight improvement in their business activity.” Verdant and Versatile Despite the less than lush predictions, wood and lumber still have a number of advantages to offer the construction industry, not the least of which would be its competitive pricing. Hap Person, president of Honolulu Wood Treating LLC, conducted a nonscientific survey of local lumber prices, visiting three different major building suppliers, the result of which showed various lumber products to be priced, on average, about half that of an alternative framing material. “The results are specific to that day,” explains Person, “but it’s very apparent. I think something that’s been overlooked is … how wood has become very competitive.” In

Table of Contents for the Digital Edition of Building Industry Magazine - April 2011

Building Industry - April 2011
Content
Datebook
City’s ‘Most Ambitious Project’ Breaks Ground
Kauai’s Koloa Landing Opens
BIA Show Generates Record Crowd
Kauai Solar Farm Complete
Zoo Gets New Entry
HIUSA Takes Greener Path
Contracts Awarded
Developers
Spotlight on Success: Keaukaha Military Reservation
Low Bids
Saddle Road Receives FHWA Award
ACECH Celebrates Engineering Excellence
Lumber & Wood
Inside the ABC
Concept to Completion: Kukuiula Plantation Core
Odd Hours, on Schedule
Best Practices: How “Cost Triggers” Protect Profit

Building Industry Magazine - April 2011