Ontario's forestry sector faces a tough year in 2012, said a B.C. industry expert, but he expects it to rebound starting in 2013.
Vancouver's Peter Woodbridge, president of Woodbridge Associates, said forestry has emerged from the recession as a smaller industry but it will recover and start become more profitable starting in 2013 through 2016.
“Ontario's overall manufacturing sector is leading Canada's manufacturing recovery,” said Woodbridge, with growth rates in output averaging nearly 8 per cent in the last two years.
He attributes the eventual forestry recovery to significant reductions in global timber supply and the closure of mill capacity. “With depressed demand, it's hard for many people to visualize the looming global supply shortages. Even with expected modest levels of demand recovery, market prices for softwood lumber will begin to rise very sharply – we expect starting in 2013.”
By 2016, Woodbridge predicts a softwood lumber 'super cycle' and Northern Ontario stands to gain from it. The only limiting factor in Ontario, is Ontario itself, he said, as “the province seems determined to reduce the commercial forest area.”
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