ECONOMIC TRENDS IN 2021

THERE ARE THREE MAIN ECONOMIC TRENDS THAT WILL LIKELY IMPACT LUMBER RETAILERS IN 2021.

1 According to Russ Permann, CEO of Taiga Building Products, lumber supply is still going to be a challenge this year. The US new housing market is structurally under-supplied, causing Canada to continue to compete for supply. The COVID-19 restrictions placed on the supply chain will further challenge the speed of supply. Although the situation may improve later in 2021, commodity supply is likely to remain tight for most of the coming season.

2 Government COVID-19 subsidy programs are tapering off with many scheduled to end completely mid-year. Household incomes will soon get tighter again. Businesses will need to stand on their own without extra government help. Some businesses will not make it. However, on balance, most economists are predicting a small economic recovery for 2021.

3 With travel, sports and entertainment still under onerous restrictions, many consumers may still find themselves with spare cash to spend. In addition, according to Statistics Canada, 25 percent of all business expect at least 10 percent of their workers to remain working from home after the pandemic, with many more working at home part-time. The home seems to be a good bet for additional spending in 2021.