Wood products are an international commodity, and the forest industry is increasingly affected by global supply and demand trends. Dramatic changes are taking place in the forest ownership of U.S. forest lands as integrated firms liquidate their forest assets. Changes are also apparent in the marketplace.
Pulp and Paper
United States and Canada producers of pulp and paper have reduced softwood and hardwood pulp capacity because of high operating cost. The curtailments and closures of North American facilities have helped push market pulp prices to their highest point since the late 1990’s. Demand from Asia continues to be the primary force affecting the market. Ten new pulp capacity projects are slated for start-up over the next two years, increasing global capacity by over 11 percent. These mills are planned for Chile, Brazil, Uruguay and China.
Lumber
After four consecutive years of record lumber consumption, demand for lumber fell in 2006 and is expected to slow further during 2007. Slower housing markets are the key reason for the lumber demand declines. Residential construction is the largest market for lumber, accounting for more than 40 percent of the lumber used each year. Sawmills in the South also will be impacted by slower markets. After producing at record levels the past two years, southern production is predicted to slip by 7.1 percent to 17.4 billion board feet in 2007.
Plywood and OSB
The housing downturn has also impacted manufacturers of plywood and structured panels. Oriented Strand Board manufacturers (OSB) are adding another 4.5 billion square feet of capacity in the South, which is scheduled to come online by the end of 2008.
Energy and Fuel
Woody biomass is expected to play a substantial role in providing new sources of renewable energy and decreasing America’s dependence on foreign oil. Sources of woody biomass are being determined, and the potential areas for new wood markets are being defined. In addition, technological advances are being discovered to convert wood to transportation fuel.
Carbon Sequestration
Global warming can be stabilized by controlling greenhouse gas emissions. Carbon markets are being established and new opportunities exists for Florida’s forest landowners to become a supplier in this new market.
Recycled paper
A record 53.4 percent of the paper consumed in the U.S. (53.5 million tons) was recovered for recycling in 2006. This was the second year in a row that the paper recovery rate has increased. In order to keep up with global demand for recovered fiber, the industry has set a goal of 55 percent recovery by 2012.
The Florida Division of Forestry has developed the Florida Wood Using Industry Directory. This directory is a compilation of over 330 forest-based companies, producers and practitioners. Participation in the directory is purely voluntary, and inclusion does not constitute an endorsement by the Division of Forestry or the Florida Forestry Association. The Division simply strives to provide a concise and thorough listing for potential customers and consumers. http://flame.fl-dof.com/apps/wood_using.php
