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LETTER FROM THE EDITOR
2009 has been quite a year. Despite the challenges brought about by the condition of the housing market and the broader recession, we've continued to focus on serving our customers and readers. As a result, we kept busy in 2009. We added a bioenergy practice and a bioenergy newsletter. We launched a new website and a new lumber pricing product. We even expanded our staff.
Now, as the holidays approach, we are undergoing one more change--a change in address. In order to accommodate our growth, we moved to a new office in South Charlotte this past weekend.
Our contact information as of today (December 7, 2009) is:
14045 Ballantyne Corporate Place
Suite 150
Charlotte, NC 28277-2845
Phone: (704) 540-1440
Fax: (704) 540-6301
If you're in the Ballantyne area, stop by and visit us. And don't worry if you forget the new contact information. Our mail, calls and faxes will be transferred to our new location automatically.
Now, as the year draws to an end, we would like to take a break from unpacking and thank you for your business. We genuinely appreciate it, and we look forward to serving you in the new year.
Happy holidays, everyone.
Suz-Anne Kinney |
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INDUSTRY AT A GLANCE
From Forest2Market's Economic Outlook |
Wood Products manufacturing rose 0.1 percent between August and September, but remained 20.3 percent below its year-earlier level. Paper fell 0.4 percent, and was 7.8 percent below its September 2008 level.
The capacity utilization rate among Wood Products manufacturers rose from 49.3 to 49.6 percent, while Paper retreated to 74.2 percent (from 74.4 percent). Wood Products and Paper were, respectively, 17.6 and 6.1 percent below their year-earlier levels.
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HOUSING MARKET UPDATE |
Sales of existing homes increased to 6.1 million units in October, up 10.1 percent from September and 23.5 percent from October of 2008 (Table1). Even Lawrence Yun, the National Association of Realtors' chief economist, was surprised by the gain. Yun credits the $8,000 tax credit (which was supposed to expire in November but has since been extended to the end of April 2010 and expanded) and low interest rates (down from 5.06 percent in September to 4.95 percent in October for 30-year fixed mortgages, the third lowest rate since 1971).
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OVERVIEW OF OCTOBER PNW PRICES |
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Continuing the upward trend from last quarter, October prices for Douglas fir logs destined for sawmill-plywood production in the Westside of Oregon and Washington were up more than 5%. Increases have been the most pronounced in the Southern Willamette Valley. Washington prices for small Douglas fir moved upward as well.
Export buyers continued to be very competitive, aggressively pursuing volume. Timber Investment Management Organizations (TIMOs) and other log sellers have ratcheted back logging operations, resulting in the lowest harvest levels in recent times. Log price increases are being driven by limited log volumes and a desire to stimulate more production in anticipation of firming product prices and improved future demand.
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ECONOMIC IMPACT OF PRIVATE FORESTS |
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A new study, commissioned by the National Alliance of Forest Owners (NAFO) and conducted by Forest2Market, quantifies the economic impact of private, working forests on the U.S. economy. The study found a significant gap between the contributions made by privately-owned forests over other ownership types. On average, they generate $277,000 in state GDP per 1,000 acres, while public forests generate just $41,000 per acre. The study also concludes that every 1,000 acres of private, working forest creates 8 jobs, $270,000 in payroll, $9,850 in state taxes (income and severance taxes only) and $733,000 in annual sales.
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