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.



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