The global wood industry is growing at a steady rate and now accounts for $143.9 billion. The market has grown at a 4.3% CAGR since 2015 and is expected to reach $167.9 billion by 2023, $193.2 billion by 2025, and $269.3 billion by 2030. During the historic period, the growth of the industry was affected by several factors, including increasing costs and forest fires. However, this trend is expected to reverse itself in the next five years.
The collapse in the housing sector is the latest blow to the wood industry, and not the news is good for the world’s forests. New housing starts in the United States have fallen more than half since 2006, and the numbers are even lower in other countries. While this decline is bad news for the wood industry, it also represents an opportunity to boost its market share by offering services and lowering prices.
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As the global economy continues to recover from the recent pandemic, the wood industry is experiencing dramatic transformations. Trade tensions and protectionist measures are creating challenges for the sector. Since 2017, the United States has been imposing customs duties on Canadian lumber, and it plans to raise these tariffs to 18.3% by 2020. Moreover, trade disputes and environmental issues have led to a stricter regulatory framework imposed on the wood industry. Furthermore, government actions to preserve forests are negatively impacting the industry’s growth.
China is a major market for the wood industry. The country’s real estate market has increased dramatically over the past few years. Investment in real estate in China is expected to grow 17.9% by 2022. This growth should help stabilize the construction sector, even as China’s economy slows down. Besides that, the country’s economic recovery has also contributed to a stabilisation of the wood industry. With increasing demand for building materials, China is now exporting wooden furniture to the U.S.
The wood industry is heavily dependent on the paper sector, and e-commerce has led to a rapid rise in the demand for packaging. This has helped the industry, but it has also created inflationary pressures in the market. Further, e-commerce has also caused a rise in the price of wood. This has led to a rise in the prices of wood. While the Chinese economy has been growing steadily, the forest sector has been underperforming in many countries.
China’s real estate market has been hurt by the trade tensions between the U.S. and China. As a result, the wood industry is suffering as trade tensions between the two countries intensify. The United States’ customs duties on Canadian lumber have fallen by half since 2017, and the United Kingdom wants to impose 25% more in 2020. Similarly, China’s forests are facing an increasing number of regulations due to the global housing crisis and government’s desire to protect its forests.
The collapse of the housing sector has impacted the wood industry in many ways, including its growth. The housing market in the United States has been devastated by the housing crisis. As a result, U.S. wood exports to China have dropped by almost half. Hardwoods account for the lion’s share of the country’s exports to China. The trade war has also caused several countries to restrict the production of hardwood, which has weakened the demand for wood.
As the wood industry continues to face significant changes and is hit by protectionist tensions, there are risks in the market. In the United States, Canada has imposed customs duties on its lumber for several years and wants to increase the duty to 18.3% by 2020. Another danger is the increasingly strict regulatory environment due to environmental issues. In Europe, the EU has introduced new rules and regulations to protect forests. The industry needs to respond to these threats and stay ahead of the competition.
Conclusion
Despite its importance in the global economy, the wood industry has seen dramatic changes over the past few years. The US government has imposed protective tariffs on Canadian lumber, and the United States is considering a higher rate of duty on wood products from other countries. The industry has also seen growing protectionist tensions between countries. The United States has imposed a 25% tax on lumber imported from Canada. Further, the overall regulatory framework for the entire forest industry is becoming increasingly restrictive.
