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ECONOMIC OUTLOOK: A SUMMARY
While some indicators suggest we may be seeing the first signs of a recovery, one very important indicator begs to differ: first quarter GDP contracted at a revised, annualized rate of 5.7 percent. The housing market continues to suffer, a result of rising unemployment (which curbs consumers' enthusiasm for spending and dampens demand for new home construction) and additional foreclosures (which slow attempts to reduce excess housing inventory). Changes in the types of U.S. securities purchased by foreign investors may indicate higher interest rates in the future. Oil prices are expected to trend higher despite tepid global demand. Hence, we foresee the "green shoots of economic recovery" suffering repeated frosts until early 1Q2010; after a brief warm-up, the U.S. economy will likely cool off again by 3Q2010. For a performance overview for Wood and Paper Products industries in April, click here. |
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THE HOUSING UPDATE |
Statistics for the housing industry were mixed in April.
According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new residential sales in April increased slightly to 352,000 units, up 0.3 percent over March, though 34 percent below the April 2008 level. Inventory levels dropped from a 10.6 month supply in March to a 10.1 month supply in April. January's inventory level was 12.4 months. The median sales price for new homes was up $7,500 to $209,700, while average sales price fell to $254,000.
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PRODUCT FEATURE: |
How Forestry Consultant, Tom Vigour Uses Forest2Market's Small Business Pricing Service to Save Time and Substantiate Valuations.
At the Crossroads of North Mississippi, Tom Vigour of Vigour Forestry Consulting, Inc. does what he's been doing for decades. As a consulting forester, he works with timberland owners in the Montgomery County area, developing forest management plans and assessing the value of timber.
Vigour works primarily with small timberland owners--the average tract size is about 40 acres--and most of his clients harvest their timber only once. As a result, his success--like that of most independent consulting foresters--depends on his reputation and word-of-mouth recommendations from his customers.
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SIX STORIES, COMMERCIAL OFFICE SPACE, BUILT WITH WOOD |
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Could Commercial Construction Be a Source of Increasing Demand for Lumber and other Building Products?
In last month's newsletter, we covered a story about the changing demographics in the United States. Some of the statistics suggested that, in the long term, demand for housing would be slower because more people are delaying household formation and opting instead to live with their parents or other extended family. This month, we focus on a source of increasing demand: commercial construction using wood.
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FOREST2FUEL: Forest2Market's New Wood Bioenergy Newsletter |
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As you may have noticed, our newsletter has a new name: Forest2Mill. We added the name in order to make it easier to distinguish this newsletter from our new bioenergy newsletter, Forest2Fuel.
Don't miss the first issue of Forest2Fuel, which will be out on Monday, June 15. Here are the stories that we're working on for the inaugural issue:
- Forest2Market's founder and CEO, Pete Stewart will break a champagne bottle over the bow of the issue with a President's letter. He'll provide a reality check and give us his perspective on the future of wood bioenergy.
- Director of Operations, Daniel Stuber, will provide us with a look at feedstock price trends. Responsible for the collection and quality of all data, Daniel will lay the groundwork for our tracking of consumption and price trends as bioenergy facilities begin operations.
- Communications Manager, Suz-Anne Kinney, will take an in-depth look at the American Clean Energy and Security Act of 2009, currently being considered in the House of Representatives. She'll provide insight into the recent changes in the definition of biomass in the bill and look at the role that industry groups played in broadening this definition.
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