Rock-bottom interest rates fueled a housing boom across North American markets - In response to the difficult economic conditions unleashed by the COVID-19 pandemic, the US Federal Reserve and the Bank of Canada lowered interest rates to stimulate the economy. The sharp rise in lumber selling prices translated into higher revenue - Most lumber products are considered almost identical and widely available from other wholesalers. The sales of these products are usually determined by short-term supply and demand factors, and product prices are volatile.
Lumber Wholesaling industry in Canada outlook Market size is projected to increase over the next five years. Low lumber prices will limit revenue gains for wholesalers - Lumber prices depend on a variety of factors, including demand conditions, domestic and international supply conditions and government support to the upstream lumber manufacturing sector.
Market share concentration of the Lumber Wholesaling industry in Canada Market share concentration for the Lumber Wholesaling industry in Canada is low, which means the top four companies generate less than 40% of industry revenue. The average concentration in the Wholesale trade sector in Canada is 13%. Most lumber wholesalers are small - The industry is heavily fragmented and is primarily composed of smaller companies focusing on regional markets.
Major downsizing in British Columbia has left a sizeable gap within the North American lumber market. Over the long-term, this could yield strategic opportunities for European companies to export their products to the US.
