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Analyzing the US forest products market

Australian timber industry news - Sun, 03/11/2024 - 23:52
The forest products market remains a vital component of the global economy, driving growth through a diverse range of sectors including timber, paper, and bioenergy. Understanding the current economic landscape is crucial for stakeholders to navigate market trends that shape supply and demand dynamics. Source: ResourceWise. The US economy has shown resilience, rebounding steadily from the impacts of COVID-19. After a significant dip in 2020, GDP growth rates have stabilized, with a promising 3% expected for the second half of 2024. Despite this rebound, the forest economy has experienced fluctuating price trends. Theinstability is particularly evident in the softwood lumber and wood pulp sectors. Some areas have seen price declines which have persisted for several months. Others, such as engineered wood products, are witnessing a growth in demand. Following an extended period of rising stock prices, the US homebuilding sector encountered a slowdown in housing starts during the second quarter of 2024. This deceleration has reduced lumber demand and subsequent capacity adjustments in mills. Housing affordability, supply availability, and the direction of FED rate action have remained challenges throughout the year. However, demand for innovative wood products, like cross-laminated timber (CLT) and glulam beams is anticipated to rise, driven by their applications in sustainable construction. Over the past five years, valuable insights have emerged to guide the forestry industry’s progress: Prioritize Efficiency and Cost Reduction The focus on prioritizing efficiency and cost reduction has led mills to embrace advanced technologies like AI-driven machinery, robotics, and optimized cutting systems. These technological advancements have significantly enhanced operational efficiency by reducing waste and boosting productivity. Precision manufacturing in particular has enabled sawmills to extract maximum yield from each log, producing more lumber with minimal waste. This approach not only amplifies profitability but also endorses sustainability. Additionally, mills are exploring innovative uses for wood byproducts in bioenergy and other bio-based products, thereby fostering a circular economy and minimizing waste. These measures collectively ensure that the mills remain competitive and forward thinking in an ever-evolving market. Invest in Expanding and Transforming Product Lines Sawmills have strategically expanded their product lines to include engineered wood products, addressing the growing demand for mass timber construction. This diversification has unlocked new revenue streams and bolstered the industry’s market position amid fluctuating demands in traditional sectors. The surge in e-commerce and global shipping has led to an increased need for packaging materials, especially corrugated cardboard. This product has helped counterbalance declines in traditional paper products. Many mills have pivoted to focus on converting operations from conventional paper production to packaging materials, seizing the opportunity to meet the heightened market demand. By integrating recycled feedstocks, mills can effectively balance supply and demand. Doing so ensures sustainable and resilient growth in the region’s forest products sector. Promote the Growth of Mass Timber Construction Mass timber construction, particularly with cross-laminated timber (CLT), has seen a rapid rise in popularity throughout the US. The growth has transformed the materials landscape of both residential and commercial projects. Its appeal extends beyond just aesthetics. The environmental benefits of using mass timber, such as reduced carbon footprint and renewable sourcing, align with growing sustainability goals. Additionally, local governments and building codes are increasingly supportive, adapting to incorporate taller wood buildings and streamlined permitting processes. This makes mass timber a feasible choice for larger-scale developments. The momentum is evident with over 1000 mass timber projects currently announced or underway in the US. These projects reflect a remarkable shift towards environmentally conscious building practices. Additionally, local governments and building codes are increasingly supportive, adapting to incorporate taller wood buildings and streamlined permitting processes. This makes mass timber a feasible choice for larger-scale developments. The momentum is evident with over 1000 mass timber projects currently announced or underway in the US. These projects reflect a remarkable shift towards environmentally conscious building practices. Along with opportunities come challenges. Identifying areas that require additional focus can help mitigate disruptions. We’ve outlined some of the challenges we’ve seen below: The forest products sector is currently navigating challenging supply chain imbalances, largely influenced by environmental factors and regulatory changes. An increase in wildfire frequency and severity, such as the 2023 conflagrations that swept through Oregon and Washington has disrupted the raw material supply. It has caused delayed operations and directly impacted timber availability. In tandem with these environmental challenges, more stringent sustainability requirements, including the European Union Deforestation Regulation (EUDR), have imposed additional compliance burdens on exporters aiming to meet European market demands. These factors combined create a volatile environment, demanding adaptive strategies from industry stakeholders to ensure continued supply chain resilience and market competitiveness. The forestry market in the Northwest US and Canada has experienced significant fluctuations in timber prices, partly driven by trade uncertainties that have created an unpredictable economic environment. These market disturbances have forced stakeholders to navigate significant volatility, making strategic planning more complex. As the use of sawmill byproducts like chips and residues for pulp feedstock increases, the demand for traditional roundwood pulpwood and whole tree chips has sharply declined. This shift has created significant challenges for landowners, loggers, and wood dealers, particularly those dependent on pulpwood sales to support forest thinning and timber stand improvement efforts. With fewer buyers in the pulpwood market, landowners are often left with under performing timber stands, while suppliers face reduced opportunities to sell lower-grade materials. The result is mounting pressure on the entire wood supply chain, threatening both profitability and long-term forest health in the region. Compounding these challenges are labour and workforce issues, the most recent being the US port strikes announced on October 1st. These strikes have further impacted the market by disrupting supply chains and exacerbating existing logistical difficulties, prompting the industry to address labour relations and workforce stability to secure its future resilience. Recently, the forest products industry has seen significant consolidation with larger corporations frequently acquiring smaller businesses. This trend helps companies achieve economies of scale, streamlining operations and cutting costs. However, it also leads to less competition and fewer opportunities for smaller, independent operators who […]

Microsoft’s new datacentre in CLT to reduce company’s carbon footprint

Australian timber industry news - Sun, 03/11/2024 - 23:48
Microsoft is building its first datacenter to be made with super strong ultra-lightweight wood in a bid to slash the use of steel and concrete, which are among the most significant sources of carbon emissions. Source: Timberbiz A wood datacenter may sound strangely old-fashioned, if not improbable. But Microsoft engineers have developed a hybrid approach using cross-laminated timber, or CLT, a fire-resistant prefabricated wood material that will enable the company to reduce the use of steel and concrete. The hybrid mass timber, steel and concrete construction model is estimated to significantly reduce the embodied carbon footprint of two new datacenters by 35% compared with conventional steel construction, and 65% compared with typical precast concrete. Microsoft’s hybrid datacenters are the latest examples of how it is working to decarbonize its datacenter and construction operations. In 2020, Microsoft unveiled ambitious sustainability goals: By 2030, it would be “carbon negative” meaning it would take more carbon out of the atmosphere than it emits. And by 2050 it would remove from the atmosphere the equivalent of all the carbon the company has emitted since its founding in 1975. Four years later, there has been meaningful progress. In May, Microsoft announced it had achieved a 6.3% reduction in direct emissions over three years. But indirect emissions increased 30.9%, driven by the growth of datacenters and the hardware housed inside. Indirect emissions are particularly difficult to manage since they include carbon emitted during extraction, processing, manufacturing and even transportation of materials, and so are outside Microsoft’s direct control. In response, Microsoft has mobilized a company-wide effort to accelerate decarbonization. “It’s an all-hands-on-deck task,” says Jim Hanna, who leads sustainability for Microsoft’s datacenter engineering team. While no single action will close the gap between 2030 goals and current trends, Microsoft has multiple levers to pull. Contract language is being updated to accelerate decarbonization by including low-carbon requirements for materials and equipment used in datacenter construction. Select high-volume suppliers will be required to use 100% carbon-free electricity by 2030. Investments in low-carbon building materials from concrete that permanently traps carbon dioxide to hydrogen-powered steel production are being ramped up in a bid to accelerate commercial supply. And cross-laminated timber, a staple of low-carbon building in the European Union that has only recently begun to catch on in the US, is being put to the test in what Microsoft believes is one of the first hyperscale examples of engineered wood in a US datacenter. Microsoft isn’t the only company working hard to meet its sustainability goals. Many big companies and suppliers have their own ambitious carbon-reduction targets – and are tackling similar challenges. “A lot of our suppliers are on the same journey as we are,” says Richard Hage, who leads global strategy for datacenter engineering at Microsoft. Everyone is “implementing key initiatives to lower the embodied carbon of their materials and their products.”

Responsible forest stewardship for biodiversity

Australian timber industry news - Sun, 03/11/2024 - 23:47
During COP15 in Montreal, Canada, FSC together with WWF and IKEA announced the launch of an initiative to fast-track Biodiversity Assessments in FSC-certified forests. Now, during COP16 in Cali, Colombia, the first results are ready to be shared, taking a further step in demonstrating the value of forest biodiversity and contributing to the delivery of the post-2020 Global Biodiversity Framework. Source: Timberbiz These first results indicate promising initial research into the benefits of responsible forest stewardship for biodiversity. In the current biodiversity crisis, monitoring and assessing the impacts of human activities and conservation initiatives is increasingly important. Forest ecosystems and their responsible management have a crucial role in maintaining biodiversity across the globe. However, there is still a lack of robust evidence on how much responsible forest management, especially FSC Forest Management (FM) certification, contributes to biodiversity conservation. Biodiversity loss is the third greatest threat humanity will face in the next decade. More than one million species are facing an unprecedented extinction rate, and at least 40% of the Earth’s land surface has degraded. Evaluating the outcomes of FSC certification is essential to allow insight-driven improvements of Forest Stewardship Standards (FSS) and be able to communicate about the positive outcomes of responsible forest stewardship. This is important for FSC to remain relevant and credible in a changing market where substantiating sustainability impacts is increasingly needed. In late 2022, the Forest Stewardship Council (FSC), WWF and IKEA initiated the Fast-Tracking Biodiversity Assessment project. Soon after its announcement at the COP15 in Montreal , several other companies joined the project, which generally aims to enhance the understanding and monitoring of the effects of FSC certification on biodiversity. It has two main objectives: To evaluate the biodiversity value associated with FSC FM certification. To advance in the development of a standardized and robust monitoring framework for forest biodiversity as part of FSC certification. The project focuses on Brazil, Finland, and Sweden. In these three countries where biodiversity represents an important sustainability value, and where responsible forest management plays an important role for its maintenance. The project benefits from a combination of a technical perspective thanks to the involvement of local consultants and researchers with strong expertise in biodiversity and forest management, and a market perspective, thanks to the participation of various market actors steering the project. This combination ensures a good balance between the scientific soundness necessary to evaluate the outcomes of conservation and management activities and the relevance of the approach taken and subsequent communication of the results to a broad audience on the market. An interactive story presents the key results related to objective 1: to evaluate the biodiversity value associated with FSC FM certification. In addition, the project’s final reports provide more in-depth information and results. In each country, local consultants sought insights into the monitoring, management and conservation of biodiversity associated with FSC certification through exploring: More information is available here.

Automatic and manual smoke modelling during bushfires

Australian timber industry news - Sun, 03/11/2024 - 23:47
When large fires break out in New Zealand, like on Christchurch’s Port Hills, or when Australian wildfires cause New Zealand’s skies to turn pink and orange, Scion staff have an important job. Scion’s automatic and manual smoke forecast modelling can inform health authorities’ decisions and advice by forecasting smoke locations and fine particulate concentrations.  Source: Timberbiz The smoke forecast is published in a modelling prototype on Scion’s website. The automatic modelling is done using satellite detected fire hotspots and forecasted weather, which together are used to generate potential fire size, smoke emissions and downwind particulate concentrations. This smoke footprint shows hourly PM2.5 concentrations — concentrations of particles less than 2.5 micrometers in diameter. It is these small particles that can travel into the body when inhaled and affect human health. High concentrations of particulate matter can also affect visibility. But automatic modelling has some flaws. Satellites pass over in four-hour intervals and clouds affect visibility which can reduce the number of hotspots detected. Automatic models are also built on assumptions that may not suit all situations. So, Scion’s Fire and Atmospheric Team also runs the system manually upon request, for example by Fire and Emergency New Zealand. Scion initiated manual modelling when the Port Hills in Ōtautahi Christchurch caught fire in February. This allowed informed communication around smoke impacts, including where hotspots were not detected due to cloud cover. For the Port Hills fire smoke modelling identified locations where smoke and fine particulate concentrations could be predicted to drift over Christchurch. Smoke forecasts were produced daily showing where smoke could be hazardous over the next 48 hours if the fire continued. Qualitative results were accurate in showing the direction of smoke movement early. This modelling can inform Fire and Emergency, health authorities and the public, project leader Shana Gross says. “The purpose is to provide data that assists in decision making around smoke impacts. This could range from poor visibility over roads to health effects. For example, health authorities could use the data to provide advice on what to do based on projected smoke concentrations,” she said. This advice could include staying inside, shutting windows, or evacuating. The modelling system forecasts smoke from fires both here and eastern Australia. Forests and Landscapes general manager, Tara Strand, says smoke can have far-reaching effects. “Smoke affects many people and can impact many kilometres downwind… A member of the community can use this tool to build an understanding of timing and levels of smoke exposure,” Ms Gross said. While the smoke forecasts are still a prototype, Scion endeavours to keep them up to date, particularly during wildfire season. It is important to recognise, that in any model the outputs have uncertainty and error and while the team strives to minimise both of these, the prototype is still undergoing testing and evaluation. New Zealand’s wildfire season runs from October to May with the highest risk from January to March.

Stay safe in the forest

Australian timber industry news - Sun, 03/11/2024 - 23:46
Timberlands, in partnership with the Rotorua Lakes Council, Regional Tourism Organisation RotoruaNZ and the CNI Iwi Collective, are urging all recreational users of Whakarewarewa Forest to stay out of unauthorised operational areas to ensure safety. Source: Timberbiz Timberlands manages the Kaingaroa Forest Estate, one of the largest sustainable harvest forests in the Southern Hemisphere. Alongside iwi landowners, Timberlands provides access to 200 kilometres of mountain biking routes. Timberlands General Manager of Sustainability, Colin Maunder, says Whakarewarewa Forest is a recreational haven for mountain bikers, walkers and horse riders, but it is also a commercial forest and those using the forest must never enter unauthorised areas. The forestry company wants to raise community awareness to the risks involved for both recreational users and kaimahi (workers) when people do not read, or heed forest signage. “When mountain bike riders, walkers, or hikers unlawfully enter an operational area, it creates serious risk not only for themselves but also for our workers who may be engaged in hazardous tasks such as waste thinning, aerial operations, and road edge felling activities. “We know that the forest is a great place to ride and play, but we urge everyone to read and heed forest signage and controls for their own safety and the safety of our kaimahi,” he said. Mr Maunder says the importance of taking notice of the signs in and around any forest area is vital, and shares that anyone who enters an unauthorised area can be prosecuted under the Health & Safety at Work Act 2015. “Starting in November we are undertaking harvesting in areas of Whakarewarewa Forest and have increased controls and signage in preparation. We want to prevent the likelihood of people going into areas they shouldn’t,” Mr Maunder said. “We are pleased to be partnering with our community to promote better safety behaviour across the ngahere (forest). We want to spread the word and ensure everyone can enjoy Whakarewarewa Forest safely.” Rotorua Lakes Council’s Active and Engaged Communities Manager, Rob Pitkethley, says council supports this initiative. “We fully support the efforts of Timberlands to protect our community and their workers. Timberland’s message aligns with recent work that council and its partners have been undertaking to increase safety awareness while enjoying the recreational offerings in the forest. “Safety in our forests is a shared responsibility and we strongly urge all forest users to read and heed the signs to ensure safety at all times.” Timberlands is particularly pleased to receive the support of RotoruaNZ, who will be communicating with local tourism operators. “Whakarewarewa Forest attracts thousands of visitors to our beautiful region each year, and we encourage our tourism operators to join us in educating visitors on the importance of keeping safe and heeding all signage,” Andrew Wilson, Chief Executive RotoruaNZ said.

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by Dr. Radut