FRA Welcomes Positive signs in US House Building Market
Industries that benefit from a boom in house building, such as forestry, are likely to welcome
news that the US housing market is still in recover and that lumber prices are increasing as a
result, claims FRA.
Bainbridge Island, WA, October 12, 2012 - Industries that benefit from a boom in house building,
such as forestry, are likely to welcome news that the US housing market is still in recover and that
lumber prices are increasing as a result, claims Forestry Research Associates (FRA).
The forestry investment research group said that news of soaring US house builders' publicly
traded stocks in is most welcome among forestry management firms. “Businesses that run
plantations producing timber for house building, such as Greenwood Management, will be excited
to hear that the recovery in the US housing market is going from strength to strength,” said FRA’s
analysis partner, Peter Collins.
Senior analyst at ERA Forest Product Research, David Elstone, told The Globe and Mail in Canada:
“The outlook for the softwood sector in general is quite positive over the next few years as we go
through a growth cycle.” His views are echoed among forestry analysts all over the Americas, who
predict increasing timber prices and yields for those investing in plantations.
Most of the wood that will be used in the construction of US homes will need to be sustainably
sourced. This is why projects like those run by Greenwood Management in Brazil are so
attractive to investors. Collins explained, ”Plantations that are run on a cyclical basis are
sustainable as new growth always replaces trees that are felled.
“Plantations in regions where there is natural forests, like Brazil, can also help to reduce the
pressure to use native timbers and instead produce a source of fast-growing, sustainable timber
appropriate for use in a number of construction projects and for furniture making, or even turning
into coal,” added Collins.
Investing in alternative asset classes like forestry has become increasingly popular among those
who want to diversify their portfolios against risk and make an ethical choice.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394