APA – The Engineered Wood Association is predicting that the demand for wood products will be increasing through 2019. According to a news release issued June 30, its expected demand increases include:
- Demand for structural panels in residential construction in North America is projected to rise 10% in 2015 and 19% from 2015 to 2019.
- Other engineered wood products will see a growth rate of 20% to 25% from 2015 to 2019.
- LVL demand is projected to increase due to sustained improvement in housing starts. It didn't give growth forecasts.
APA is also forecasting a rise in production in the same 2015-2019 period:
- North American production of OSB and Plywood are projected to see a nearly 8% increase over 2014 levels and grow to 32.6 billion square feet in 2015.
- Glulam production increased 2% in 2014 and is projected to increase 8% this year to 255 million board feet with a steady increase through 2019.
- I-joist production in 2015 is projected to increase from 672 million to 750 million linear feet with a projection of 955 linear feet by 2019 thanks to steady increases in housing starts.
- LVL production is expected to go from 63.9 million cubic feet in 2014 to 68.8 million cubic feet in 2015, and a projected output to grow 28% to 88 million cubic feet by 2019.
The increases in demand and production stem from improvement in new home demand and better employment prospects, the association said. More adults are heading out on their own, which should strengthen the demand for new apartment buildings. In the U.S. and Canada, construction of new multifamily structures are accounting for more of the residential growth compared with 10 years ago. In the non-residential market, manufacturing production will slow its growth to 2% to 3% and will average at 3% until 2019.
Click here to read the APA market outlook.