Forest Products Industry

  The inception of the Jackson Kidd Wellbeing Award was born out of a profound personal tragedy, yet it transformed into a compelling force for positive change within the timber frame and truss industry. Source: Timberbiz Moved by the loss of Jackson Kidd, a vibrant individual whose life ended far too soon due to the struggles with mental health, his parents Dean and Tammy Kidd worked alongside FTMA to create a lasting legacy in his honour. The idea was to present an award that would not only serve as a perpetual tribute to Jackson’s memory but also act as a catalyst for eradicating the stigma around mental health issues in the workplace. Together, Mr and Mrs Kidd and the FTMA launched an accolade that emphasised the critical importance of mental health awareness and support. The Jackson Kidd Wellbeing Award which aims to encourage companies to prioritise the mental well-being of their employees as much as their physical safety. The presentation of the inaugural 2024 Jackson Kidd Wellbeing Award to AAA Advanced Trusses was a great occasion, marked by emotional speeches from Mr and Mrs Kidd. In a night tinged with solemn remembrance and heartfelt commitment, AAA Advanced Trusses stood under the spotlight, not just for their industrial achievements but for the profound impact they’ve made in the realm of mental health within the workplace. AAA Advanced Trusses, led by Colin and Andrew Clements and Ryan Goodes, has set a precedent for how companies can cultivate a nurturing, supportive work environment. Their comprehensive approach to employee wellbeing, underscored by initiatives such as the Annual Wellness Reviews and Employee Assistance Programs, reflects a deep understanding of the importance of mental health. Their commitment goes beyond standard practices, creating a workplace where employees not only have access to physical wellness facilities like an on-site gymnasium but also benefit from emotional support systems fostering a sense of belonging and safety. The award presentation at the Geelong Cats Stadium during the 2024 FTMA National Conference Dinner was emotionally charged. The AAA team’s acceptance speeches shed light on personal tragedies with mental health, underscoring the imperative for attention and action in this area. It was a night that touched the hearts of the 270 attendees with a raw, powerful message about the importance of mental health support in the workplace. AAA Advanced Trusses’ victory in winning the inaugural Jackson Kidd Wellbeing Award was a poignant reminder of the impact companies can have on their employees’ lives beyond the workspace. They stand as beacons of hope and progress in the industry, pioneering efforts to ensure that their employees feel valued, safe, and supported at all times. This award is a testament to the fact that change is possible and that the fight for mental health awareness and support in the workplace is gaining ground, one step at a time.

Net sawmill capacity in North America declined by 2% in 2023 as slowing lumber demand and over-production made their mark. A flood of sawmill expansions and new greenfield mills over the last six to seven years has added large amounts of lumber capacity, mainly in the US South. These capacity increases have tended to offset numerous mill closures, mainly those in British Columbia, Canada (BC) and the US West, with a few surprising closures recently in the US South. And as lumber prices moved below breakeven prices in some regions in 2023, higher cost mills were closed, sometimes to rationalize timber supplies around multiple company sawmill sites. Nine sawmills were permanently closed in 2023. So far in 2024, three new sawmills started operating in the US South while nine more sawmills – in all regions of North America, except Eastern Canada – have announced closures, not to mention many shift reductions at BC mills, some permanent. Forisk’s North America top ten softwood lumber producers’ ranking had an estimated 36.9 billion board feet of lumber capacity in 2023 and represented 49 % of total North American capacity. Five of the top ten companies have their head offices in Canada. West Fraser remains the largest producer in North America with 7.0 billion board feet of capacity, while Weyerhaeuser and Interfor were closely grouped in second and third spot (see table). The top US softwood producers were led by Weyerhaeuser with 4.6 billion bf of capacity. The top ten companies had about 50% of total US softwood lumber capacity. The top Canadian lumber producer was West Fraser with 3.5 billion bf of capacity. The top five Canadian companies had about 47% of total Canada softwood lumber capacity, all with operations in the US. In the North American lumber markets, April can often be the start of two-to-three-month cycle of higher prices. In contrast to last year, W-SPF 2×4 prices (FOB mill) plummeted starting late February and did not recover until July 2023. In 2024, W-SPF prices have so far stayed in the US$400s and slightly eclipsed their 2023 peak price of US$460/Mbf in March. Things have been looking better for SPF, but lower prices are inevitable! It is the US South, however, that region has been experiencing very weak lumber prices. Normally, SYP trades at a US$ 50-60/Mbf premium to W-SPF on a FOB mill basis, but in mid-April it was trading at a massive US$ 120/Mbf discount (W-SPF at US$ 410 and SYP-W at US$ 290). Many SYP sawmills are now below cash-costs, and this has resulted in some temporary and permanent sawmill curtailments in the South – something not seen since the housing market collapse 15 years ago. Consequently, SYP mill capacity curtailments are expected prices to allow prices to move higher over the next few months and more. At the high end, US Inland lumber prices have come off 10% from their recent peak levels. Fir-Larch 2×4 KD R/L prices in mid-April were US$ 525/MBF and Hemlock-Fir at US$ 520 – both are huge FOB mill premiums to W-SPF and SYP. Nevertheless, SPF lumber prices in BC are moving lower to below break-even levels due to constrained and expensive log supplies that make sawmilling so difficult in that province. So far this year, closure announcements include West Fraser (Fraser Lake) and Western FP (Port Alberni), and curtailments or reduced output at a variety of mills includes at Tolko Industries (Williams Lake), Interfor (scattered mill production reductions), with Dunkley, Teal Jones, San Group and others have been reported as taking some temporarily downtime or shift reductions. The US market will probably be the most stable global market in 2024 despite having a few headwinds. High mortgage rates from global inflation and a shortage of existing homes for sale has been a benefit to new residential home builders as a key option for new home buyers. US housing demand and housing starts are expected to remain like 2023 in 2024, and slightly better if the pending recession is avoided. A net benefit to lumber demand is that more single-family houses are forecast to be started in 2024 than in 2023 and they consume three times the lumber as multi-family units. In other major markets such as Europe, China and Japan, lumber demand so far in 2024 has been negatively impacted by oversupply, high interest rates and a lack of consumer confidence, creating flat to lower demand and prices. Essentially, the global lumber markets are not doing too well, as there is still too much supply chasing weak to perhaps stable demand. The global outlook for 2024 is for flat to perhaps some increase in demand in a few regions, but stable markets will still require a constrained supply – this could be a challenge in 2024 in some markets. Most, including myself, expect the second half of the year to be better than the first half – early signs indicate that this could be very possible. These topics and others will be in full discussion at the GLOBAL WOOD SUMMIT in Vancouver BC between October 28 and 30! Visit: https://russtaylorglobal.com/global-wood-summit-vancouver-bc/ Russ Taylor is a US-based forest industry consultant and analyst.

Monday’s Earth Day provided a chance to reflect on why one of our most climate-smart materials is wood – specifically, engineered mass timber. While other bio-sourced materials also exist, timber is growing in forests as we speak with volumes making it feasible for commercial use in construction industry on a global scale. Mass timber in construction brings with it a vast array of environmentally sustainable benefits. Its lightweight durability means that you can deliver a higher volume to site with a single delivery, saving on emissions across transportation. Compound this with the benefits of mass timber being prefabricated in factories: a mass timber building kit can be erected in weeks. This means that workers need not be on site for as long as compared to current mainstream construction materials, reducing construction timelines whilst potentially increasing profit margins. Most importantly, prefabricated elements support increased worker safety, as more work is performed in controlled factory conditions versus the project site uncertainties of weather and much else. Not to mention timber’s inherent sustainability strength. Trees remove CO2 during their growth, with the carbon stored in the wood remaining sequestered within the building’s structure for its lifespan. Utilising biogenic materials with this high carbon sequestration capability can turn a building from a source of carbon emissions to something positive – a means of carbon storage. Even more, wood substitutes for high-emission conventional building materials. Thus, wood can be a powerful means of contributing to sustainability and climate mitigation efforts. Earth Day is focused on raising awareness and fostering action towards environmental protection – a collaborative effort that extends to the forestry practices associated with producing mass timber. With two million hectares of forest land globally, the majority in Sweden and significant holdings in Finland, Estonia, Romania, China, Brazil, and Uruguay, Stora Enso exemplifies commitment to sustainable forestry. The 99% of forests owned or managed by Stora Enso are certified, and all the wood used in its sawmills is sustainably and legally sourced by implementing third-party certified chain of custody and due diligence systems, such as PEFC. In addition, Stora Enso is committed to a net positive impact on biodiversity within our own forests and plantations by 2050. This holistic approach to environmental, social, and economic sustainability is the basis for sustainable forest management that responsibly cares for and uses forests, enhancing biodiversity, productivity, regeneration capacity, and vitality for the long term. Johanna Pirinen is  SVP, Sustainability and People & Culture at Stora Enso