Trudeau and Biden are set to release a roadmap for a renewed relationship, but a new US administration comes with new frictions. In other Business news: US and Canadian confidence indicators are on the rise as covid-concerns ease; the surge in residential building permits means strong markets ahead; builders point to material prices as their top challenge; and soaring lumber prices add to Oregon’s housing crisis. Meanwhile: Kalesnikoff Timber is named BC’s lead exporter of manufactured products; and Boise Cascade reports strong results.
In Forestry/Climate news: BC’s anti-logging protesters target Premier Horgan’s office; tree spiking is employed by Trans Mountain protesters; Nova Scotia ENGOs pan province’s logging ban; the US is reconsidering Trump’s spotted owl rollbacks; and keeping trees in the ground is championed to slow climate change.
Finally, registration is open for SFPA’s renowned Sawmilling EXPO.
Kelly McCloskey, Tree Frog Editor
2020 was a year dominated by uncertainty stemming from the COVID-19 pandemic, which also disrupted the global M&A market. While global M&A has seen a recovery during the second half of 2020, deal-making in the Forestry, Paper and Packaging has been muted relative to other sectors. The third quarter experienced a rebound both in value and volume; however, deal-making in the sector cooled off in Q4’20 as a resurgence of COVID-19 hit the US, Europe, and parts of Asia. Overall, FPP deal value and deal volume declined by a significant 41% and 38%, respectively, in 2020 compared to 2019. The challenges and uncertainty experienced in 2020 resulting from COVID-19 will likely continue to impact M&A activity into 2021 as much of the world copes with a resurgence in infection rates. We do, however, expect continued recovery of deal activity in 1H’21 from sector lows that occurred at the beginning of the pandemic. 
There are some exciting stories to tell about new home building in the U.S. and Canada. Monthly average U.S. housing starts in 2020 were 1.396 million units, +7.8% versus 2019’s figure of 1.295 million. In January of the current year, starts rose some more, to 1.580 million units, +13.2% versus 2020’s 12-month average. …But none of the foregoing is the really big story. The issuance of residential building ‘permits’ is a leading indicator of how ‘starts’ will perform in a month, or two, or three. The ‘permits’ data series has been setting new multi-year highs for five months in a row. In January of this year, they reached a level not seen since the housing boom of 2006. They zoomed skywards to 1.881 million units. Given the current strength in permit-issuing activity, the laying of foundations for ‘starts’ is pretty much assured to remain buoyant at least through the summer and into the fall of this year.
Kalesnikoff is honoured to have been named the province’s lead exporter of manufactured products in 
On April 12, 2021, attendee registration housing blocks will open for the 36th Forest Products Machinery & Equipment Exposition – EXPO 2021. This three-day event will be held in person from August 11-13, 2021 at Atlanta’s Georgia World Congress Center. Advance attendee registration will be available on SFPAexpo.com starting on April 12, and costs just $20 per person. The housing block for EXPO includes 750 rooms at the Omni Atlanta Hotel at CNN Center, which is connected to the Georgia World Congress Center. Sponsored and conducted by the Southern Forest Products Association (SFPA) every two years since 1950, EXPO includes many of the biggest names in the business displaying everything from commercial and portable sawmill machinery to materials handling equipment, attracting key representatives from the nation’s largest wood products manufacturers. EXPO provides a space for both hardwood and softwood sawmillers to gather, celebrate new technology, network, and learn about the industry’s latest products. Expo 2019 featured over 54,000 square feet of exhibit space and 181 exhibiting companies.
