Blog

Lumber Production: US & Canada

August 2016

U.S lumber production through May totaled 13.450 billion board feet, a 2.5% increase from the January-May 2015 total according to the Western Wood Products Association. The South had the highest increase in production, up 3.0% over the same time frame in 2015.

In Canada, lumber production in May totaled of 2.378 billion board feet, a 9% increase above the May 2015 number. The year-to-date output is 9% ahead of the 2015 year-to-date pace. Quebec had the highest increase in production with a 16% increase over last year’s pace.

The Real Deal

July 2016

Synergy Thermal Foils is on fire with addition of over 20 new, remarkable designs within the past six months. This month’s latest addition is yet another exceptional design, Verismo. A corresponding TFL match is offered by Arauco (Flakeboard).  Our latest 3D laminate is bound to leave everyone impressed by its flawless design.

Verismo

Verismo

The U.S. Housing Market: Has it recovered?

July 2016

sales-houseNearly nine years later, the housing U.S. housing market is finally making its comeback. As a bright spot for the U.S economy, the housing market has led to increased employment, investment and overall economic growth. Although some areas such as sales of existing homes have been on a rapid rise other aspects of the housing market has yet to catch up to historical norms.

While May saw the highest level of sales for existing homes in the past nine years, the sales of new single-family houses decreased 6% to a seasonally adjusted annual rate of 551,000. Investment in private, residential construction has also been below historical norms while private spending on multi-family housing has surpassed pre-bubble era.

Another drastic change to the housing market seen over the past 15 years has been the overall size of homes. New single-family houses are now increasingly larger because builders have been focusing on larger homes with more amenities. About 31% of new constructed houses are over 3,000 square feet in 2015 compared to only 17% in 1999.

The U.S Housing market has made a slow recovery but it is not done yet. Signs are pointing to continued growth within the housing market at demand for housing increases as unemployment decreases and wages increase.

Increases in U.S. Industrial and Manufacturing Production

July 2016

U.S. industrial output rose in June at a seasonally adjusted rate of 0.6%, according to the Federal Reserve. The last time it jumped at that rate was in July 2015 and economists are forecasting another increase during the fourth quarter of 2016.

With signs pointing to economic growth within industrial production, manufacturing has also received positive growth on the Institute for Supply Management index (ISM). Activity was gauged at a 53.2* on the ISM index during June, a 1.9 increase compared to the previous month. This is the fourth consecutive month in which manufacturing production increased with notable growth in both orders and production and exports hitting the highest level since November 2014.

These encouraging signs indicate that the U.S. industrial and manufacturing industries are on the mend following recent periods of contraction.

For more information please visit ISM and The Federal Reserve

*On the Institute for Supply Management index a reading above 50 indicated that the factory activity is expanding and a reading below 50 signals contraction.

Canada: Investment in Residential Housing

July 2016

For the ninth consecutive year, investment in residential construction increased year-over year. In the first quarter, total investment in residential construction rose 2.1% to $26.1 billion compared with the same quarter in 2015. Higher investment in apartment and apartment-condominium building construction, up 21.2% to $4.1 billion, was responsible for the advance at the national level.

The latest data from April shows that new residential construction increased 8.4%, totaling $4.2 billion, compared to the same month in 2015. Continuing the trend, increase was driven by the higher investment levels in apartment and apartment-condominium building.

While investment within the past few months has increased at a fast rate, Canada Mortgage and Housing Corporation (CMHC) projects housing starts to slow down for the remainder of 2016 and going into 2017. Annual housing starts are expected to range from 181,000 units to 192,000 units in 2016 and from 172,000 units to 183,000 units in 2017. The forecast for the housing market will have strong regional variations due to slower growth in oil-producing provinces.

Holy Smoke! STF is adding another two designs.

June 2016

Without a shadow of a doubt, STF’s latest additions Shadow Teak and Smokey Teak are bound to please. Shadow Teak not only matches Arauco Prism’s (Flakeboard) Licorice Groovz but also can be found at Specialty Laminates and Duramar under the name Shadow Teak. Smokey Teak has matches with Specialty Laminates (Smokey Teak) and Duramar (Smokey Teak) as well as Arauco Prism’s (Flakeboard) Concrete Groovz.

Shadow Teak

Shadow Teak

Smokey Teak

Smokey Teak

New Single-Family Housing Surge in Size and Sales

June 2016

Bigger is always better. For Americans, that seems to hold true in regards to housing. New single-family houses have increased in size over the last forty years according to the U.S. Census Bureau.

averageHomes are 61% larger than the median from 1975 and 11% larger than 2005. The median size of new single-family houses was 2,467 square feet last year. Not only are houses getting bigger but there is an addition of amenities, 93% of new houses had air conditioning compared to 46% in 1975. Almost 96% of new homes last year had at least two bathrooms compared to 60% forty years ago.

The housing market is continuing to gain strength due to steady job creation and low mortgage rates. According to the National Association of Realtors, the sales of existing homes increased for the second straight month in April. Along with the recent U.S. Census Bureau and the U.S. Department of Housing and Urban Development, sales of new single-family houses were at adjusted annual rate of 619,000 for April. This is a 16.6% increase from the Revised March rate and is 23.8% above the corresponding month last year. April 2016 is the strongest month in more than eight years.

Substantial Growth in the Wood Products Manufacturing Industry

June 2016

The overall economy grew for the 84th consecutive month and economic activity in the manufacturing sector expanded for the third consecutive month in May 2016 according to the latest Manufacturing ISM report. The May PMI registered at 51.3%, an increase of 0.5% from the April reading at 50.8%.

Out of 18 manufacturing industries, 12 industries reported overall growth with Wood Products leading the pack. The Wood Products manufacturing industry reported the most growth in production and new export orders but also stated significant growth in the new orders category. Wood Products additionally reported paying lower prices during the month of May.

These indications show that for the Wood Products manufacturing industry the market is improving progressively in both orders and pricing.

For more information, please visit: PRNEWSWIRE

Home Improvement Retailers Report First Quarter Results

June 2016

The world’s two largest home improvement retailers have reported growth in the first quarter of this fiscal year.

Lowes, Mooresville, N.C., reported $884 million for the first quarter, a 31.4% increase over the same time period last year. Sales for the quarter increase 7.8% to $15.2 billion from $14.1 billion during the first quarter in 2015.

Home Depot, Atlanta, GA, reported first quarter net earnings $1.8 billion, an increase of 19% from the same period last year. Home Depot also reported sales of $22.8 billion for this quarter, a 9% increase from the first quarter during fiscal year 2015.

Fashionable Solids

May 2016

While some design trends come and go, you can never go wrong with solid colors. That is why STF is now stocking Folkstone Grey and Snow White. Folkstone Grey matches Wilsonart Fashion Grey and Formica Folkstone. This popular solid can be found in almost every domestic TFL collection. Folkstone could also work as a match to Tafisa Summer Drops and Uniboard Sunset Grey.

We needed a name for our latest solid to go along with our other seven in stock. Snow White won’t be found sleeping and is sure to be very popular. This beauty has been called 949, Designer and Matte White.

These latest additions to our solid collection are timeless classics that will never go out of style.

Snow White

Snow White

Folkstone Grey

Demand for Single Family Construction

April 2016

The National Association of Realtors (NAR) released their first quarter Housing Opportunities and Market Experience survey which reveals that 85% of surveyed current homeowners and 75% of renters would purchase a single-family home in the next six months. When asked if they would purchase a home outside an urban area, 85 % of homeowners and 21% of renters answered that they would.

While there has been an increase in the demand for single-family homes, builder’s confidence for March has remained even with February. According to the National Association of Home Builders (NAHB), builder’s confidence for newly built single-family homes has been steady at a level of 58 on the National Associations of Home Builders/Wells Fargo Housing Market Index (HMI). The component gauging current sales conditions was level at 65 while sales expectations in the next six months dropped 3 points to 61 from February.

Please visit: The NAR Home Survey & NAHB

Cabinet and Furniture spur demand for High Pressure Laminates

April 2016

According to the Decorative Laminates study by the Freedonia Group, the demand for high-pressure laminates in the Unites States is projected to increase over the next four years. Decorative surfaces are in high demand for domestic manufacturing of cabinets, furniture, retail fixtures, and wall paneling. There is an expected 2.5% growth annually, reaching 11.6 billion square feet by 2020, approximately a $6.8 billion dollar increase. The cabinet market is projected to have the most gains in the use of decorative surfaces.

For more information, please visit: Freedonia Group