Industries that benefit from a boom in house building, such as forestry, are likely to welcome news that the US housing market is still in recover and that lumber prices are increasing as a result, claims FRA.

Bainbridge Island, WA, October 12, 2012 – Industries that benefit from a boom in house building, such as forestry, are likely to welcome news that the US housing market is still in recover and that lumber prices are increasing as a result, claims Forestry Research Associates (FRA).

The forestry investment research group said that news of soaring US house builders’ publicly traded stocks in is most welcome among forestry management firms. “Businesses that run plantations producing timber for house building, such as Greenwood Management, will be excited to hear that the recovery in the US housing market is going from strength to strength,” said FRA’s analysis partner, Peter Collins.

Senior analyst at ERA Forest Product Research, David Elstone, told The Globe and Mail in Canada: “The outlook for the softwood sector in general is quite positive over the next few years as we go through a growth cycle.” His views are echoed among forestry analysts all over the Americas, who predict increasing timber prices and yields for those investing in plantations.

Most of the wood that will be used in the construction of US homes will need to be sustainably sourced. This is why projects like those run by Greenwood Management in Brazil are so attractive to investors. Collins explained, ”Plantations that are run on a cyclical basis are sustainable as new growth always replaces trees that are felled.

“Plantations in regions where there is natural forests, like Brazil, can also help to reduce the pressure to use native timbers and instead produce a source of fast-growing, sustainable timber appropriate for use in a number of construction projects and for furniture making, or even turning into coal,” added Collins.

Investing in alternative asset classes like forestry has become increasingly popular among those who want to diversify their portfolios against risk and make an ethical choice.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com