26
PalletCentral • January-February 2020
palletcentral.com
There is also one very factor that will drive
government spending higher this year, despite the
high and rising budget deficit – it is an election year!
Thus, you should expect overall growth (GDP) to
remain near 2%. With inventory levels low, industrial
production growth should be somewhat better –
near 1%.
Quick update on the Wood Products
Situation
Last year, I gave you the "Very Good News"
about the future of lumber prices for the 2020-21
period. With a painfully slow housing recovery and
the growth in lumber capacity in the Southern U.S.
industry, lumber prices expect to remain relatively
stable. For pallet producers in the U.S. South, even
better news if you use softwood lumber. Southern
Yellow Pine (SYP) would likely fall to or below the
other key lumber products, such as Douglas Fir
(D.F.), the key west coast price. Canadian prices are
measured by Spruce-Fir (SPF).
Housing start recovery remains painfully slow,
despite clear signs of shortages in many housing
