07/19/2024
𝐅𝐫𝐨𝐦 𝐀𝐦𝐚𝐧𝐝𝐚 𝐋𝐚𝐧𝐠 𝐨𝐧 𝐅𝐨𝐫𝐢𝐬𝐤'𝐬 𝐁𝐥𝐨𝐠: Forisk’s clients have asked for an updated county-level assessment of growth-to-drain for pine in the South. In the past five years, 27 new sawmills opened (or reopened) along with 17 pellet mills, 2 OSB mills, and numerous mill expansions, increasing wood demand in those local markets. However, closures (or conversions) of 11 pulp/paper mills and 21 sawmills reduced wood demand in other areas, along with capacity decreases. What is the status of Southern market supply given these mill changes?
Growth-to-drain analysis compares the annual growth of timber to annual harvest volumes to provide a measure of market demand relative to supply. A growth-to-drain ratio of 1.0 indicates a balanced market that harvests timber at the rate of growth. Growth that exceeds demand by a large margin indicates oversupply. Conversely, annual removals that exceed growth indicate competitive markets for raw materials. [𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐑𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐧 𝐅𝐨𝐫𝐢𝐬𝐤'𝐬 𝐁𝐥𝐨𝐠]
https://forisk.com/blog/2024/07/18/local-timber-supply-and-growth-to-drain-in-the-u-s-south/
