A slowdown in home repair and remodelling projects has weakened lumber markets, the latest setback for Canadian sawmills struggling financially with depressed lumber prices. Lower-than-expected housing starts in Canada and the United States have also eroded lumber demand. On the supply side, lumber producers in British Columbia that have coped for years with decreased access to timber in the province will be facing even tighter constraints. “Everybody is holding their breath a bit because of this kind of perfect storm,” Linda Coady, president of the BC Council of Forest Industries said. …The impact of lower lumber prices already has been severely felt at a smaller company, Surrey, B.C.-based Teal-Jones Group. …Larger producers will be able to withstand the slump in lumber prices, but smaller companies will find it more difficult, said Ric Slaco, an industry consultant and former chief forester at Interfor. [to access the full story a Globe and Mail subscription is required]