Since its inception, the Softwood Lumber Board (SLB) has brought together the industry to promote the benefits and uses of softwood lumber in residential, non-residential, and new market segments to protect and increase demand for softwood lumber products in the United States. The industry has come together as a result of what the SLB has been able to accomplish and its strategic investments. All of our senior leaders across North America have joined together for the benefit of the industry and are working in tandem to expand market share – this is something that I’m very proud of and have never seen before. In addition, we’re seeing demand increase significantly for our products across North America.
The SLB, from my standpoint, must continue to focus on developing mass timber for non-residential and industrial type projects. Clearly there is a lot of opportunity in this area. We’ve seen tall buildings – in the 20-25-story range – being built across North America and Europe, while some of the bigger opportunities are in the mid-rise segment. Demand for 5-7 story or 8-12 story buildings will likely increase, partly as a result of COVID-19. This represents a significant opportunity for the SLB.
When you review the key metrics, SLB-funded programs have generated incremental demand of over 7 billion feet since 2012. New markets and new consumption has been created for our products in North America, generating over $2.5 billion in additional revenue as a result of the SLB’s work.
Another benefit of the SLB-funded programs is working in alignment on marketing, code development, and promotion, which will have a greater impact on developing lumber markets and mass timber going forward. When we work collectively, we can achieve more.
Since the inception of the SLB in 2012, the board has kept the assessment rate at the initial level of $0.35/thousand board feet, yet inflation over that same time period exceeded 11.4%. The SLB has been successful, but to maintain the same momentum, the board made the thoughtful decision to increase the rate to $0.41/thousand board feet in 2021.
The SLB is significantly important to Canfor as we continue to develop and seek new opportunities and new segments. We’re focused on customized, high quality and green building products that are environmentally sustainable and are required more and more in the world. We want to be a part of that, and the SLB helps us accomplish what we think is one of the most critical things for our future.
As part of the process to move forward with the proposed assessment increase, the industry has an opportunity to submit comments on the US Federal Register during a formal 60-day period that ends October 13, 2020.
Separate industry feedback and input on our programs and initiatives are welcomed by the SLB. Send feedback to info@softwoodlumberboard.org.
For more information visit https://softwoodlumberboard.org/maintaining-momentum-and-increasing-market-share/