Forisk named 7th in “Bulldog 100 Fastest Growing Businesses”

30 01 2010

Click figure for full list.


Weather and Markets Hamper Wood Demand for All Forest-Based Raw Materials

28 01 2010

Flows of wood raw materials declined across products during the 4th quarter of 2009, according to the Wood Demand Report. Typically, mills reduce consumption and operating around the winter holidays; however, mill and procurement managers reported to Forisk that weather, market conditions, and log supplies were all problematic.  According to Seth Freeman, Forisk’s Market Coordinator, “many mills  noted that wet weather in November and December impacted their access to wood raw materials,” as loggers and wood suppliers were unable to operate on forestlands.

Overall, pine grade consumption fell 8.3% during the quarter.  Both pine sawtimber and pine chip-n-saw saw their lowest quarterly consumption levels across the South since Forisk began reporting wood consumption in 2006.  Pine sawtimber consumption at lumber mills alone dropped 3.8% during the quarter.  In addition, pine pulpwood and direct chip purchases decreased 3.1%, with consumption dropping at both pulp mills and OSB facilities.

Looking ahead, we expect consumption to improve during the first quarter of 2010.  Several mills intend to restart operations, and there will be no holiday curtailments.  A drier first quarter would also increase log and timber availability.  According to the ForiskForecast, demand for pine grade in the US South will begin recovering in 2010 and could exceed 100 million tons per year by 2010, returning to 2006 levels of demand.

Wood Bioenergy: January 2010 Summary

27 01 2010

According to the January summary of Wood Bioenergy South, as of January 26, 2010:

  • 126 wood-consuming bioenergy projects have been announced in the US South.
  • In total, these projects represent potential, incremental wood use of 46.4+ million tons/year by 2020.
  • Based on Forisk analysis, projects representing only 18.5 million tons/year pass basic viability screening.

Click on figure for detailed downloadable summary.

Forisk interviewed on NPR regarding outlook for the timber industry

25 01 2010

ATLANTA, GA (WABE) – In recent years, Georgia’s timber producers have fallen on tough times. But a new forecast shows the

worst could be behind them. WABE’s Jim Burress reports.

The South’s demand for timber between 2006 and 2009 fell by nearly a third. That’s largely due to a decline in new housing starts.

The decline forced some timber producers out of business, while others continue to struggle, says Brooks Mendell, president of industry analyst Forisk Consulting.

“We’re at the bottom. We have folks that have managed down their inventory and are generating just enough cash to keep rolling.”

Producers may not have to wait much longer. Forisk just released its long-term timber price forecast, which shows prices rebounding by 17-percent through 2011.

Because timber production and prices reflect regional demand, Georgia could see the biggest improvements among Southern states.

In Georgia alone, timber production is between a $20-billion and $30-billion a year industry.

Jim Burress, WABE News.

Sawtimber Prices Expected to Recover in 2010-2011 for US South, yet results vary by state

21 01 2010

Turbulent times characterized by plummeting pine sawtimber prices could soon be over for timber sellers.  Forisk’s new stumpage price forecast signals climbing prices for pine sawtimber in the US South beginning in 2010.  The ForiskFORECAST pine sawtimber price forecast, which includes state-by-state forecasts through 2020, and the “Forecasting Timber Prices” workshop provide insights for timberland owners, investors, and wood procurement managers in planning future pricing and management strategies as lumber and plywood markets recover.

Click for detailed news release

Forisk in the Atlanta Journal Constitution

8 01 2010

Forisk Consulting, an Athens-based forestry research firm, compiled a list last fall of 29 wood-based alternative-energy projects announced in Georgia the past few years. Only 12 will likely “make it,” said Forisk’s Amanda Lang. Most are “proposed,” i.e. awaiting permits, financing, contracts or the technology to make them feasible.

Click here to read the article