Timber Firms Reporting Healthy Results, claims FRA
Timber producers and forestry firms are celebrating good fortune as the US housing recovery
is expected to experience growth, according to FRA.
Bainbridge Island, WA, October 19, 2012 - Timber producers and forestry firms are celebrating
good fortune as the US housing recovery is expected to experience growth, according to Forestry
Research Associates (FRA).
FRA supports a range of forestry investment products and claims that forestry in regions like
British Columbia is reporting gains off the back of the improving conditions and demand for timber
in the US.
Steady demand from China and the use of timber in property construction in the US has led to a
recovery in the softwood market in BC. ERA Forest Products Research’s David Elstone, said, “The
outlook for the softwood sector in general is quite positive over the next few years as we go
through a growth cycle.”
Analysis shows that softwood producers in the region are expected to report strong third quarter
results as a result of lumber prices steadily increasing throughout 2012. FRA’s analysis partner,
Peter Collins, said, “Now is a really great time to be investing in timber and forestry. Sustainable
forestry, such as the plantation land run by Greenwood Management and other similar firms,
can be a good alternative asset class and prices and demand are rising.”
A recent article by Marketwatch shows that a number of prominent timber firms are reporting
significant increases in the financial results and that the trend is expected to continue. Timber
prices have been volatile for a while, increasing to record high and dropping to record lows during
the recession, which we are now climbing out of, explained FRA. However, the group’s analysts are
keen to point out that timber is a risk-averse asset class as it allows investors to choose when
they cash in their ‘stocks’ so to speak.
Mr Collins explained: “If market conditions aren’t great at the time you intend to sell your timber,
you can hold off until prices rise. In the meantime, that timber will continue to grow in size and in
value, as a result.”
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394