AFA NEWSROOM V19N05

Boise Cascade Company (“Boise Cascade” or the “Company”) (NYSE: BCC) today announced new investments in Alabama and Louisiana in support of its engineered wood products (EWP) growth strategy.

In Alabama, the Company is adding I-joist production capabilities to its Thorsby EWP mill and converting a plywood layup line to a parallel laminated veneer line at the Chapman plywood facility. The Chapman investment adds to its important integration into the Company’s EWP growth plans. In addition, the Chapman plywood facility extended employment opportunities to approximately 50 of the 80 associates affected by the recently announced Chapman lumber operations curtailment. At its Oakdale, Louisiana facility, major projects planned include the upgrade and redesign of the log utilization center, a new veneer dryer and press, and modification of an existing veneer dryer. These investments are expected to take place over a two-year period.

Despite record high inflation rates, rising interest rates, and worsening housing affordability, young adults continued the post-pandemic trend of moving out of parental homes in 2022. The share of young adults ages 25-34 living with parents or parents-in-law declined and now stands at 19.1%, according to NAHB’s analysis of the 2022 American Community Survey (ACS) Public Use Microdata Sample (PUMS). This percentage is a decade low and a welcome continuation of the post-pandemic trend towards rising independent living by adults ages 25-34.

Traditionally, young adults ages 25 to 34 make up around half of all first-time homebuyers. Consequently, the number and share of young adults in this age group that choose to stay with their parents or parents-in-law has profound implications for household formation, housing demand, and the housing market.

According to the latest Producer Price Index report, growth in the average price level of inputs to residential construction less energy (i.e., building materials) fell from 15.0% in 2022 to 1.3% in 2023 (not seasonally adjusted). On a monthly basis, building materials prices rose 0.1% in December after increasing 0.1% in November (revised). Monthly price increases averaged 0.2% in 2023, down from 1.5% in 2021 and 0.7% in 2022.

The Producer Price Index for all final demand goods fell 0.4% in December, the third consecutive decline (seasonally adjusted). Most of the decline can be attributed to a 1.2% decrease in the index for final demand energy (SA). For the 12 months ended in December, the PPI for final demand goods less foods and energy increased 1.8% (NSA). The annual average increased 2.8% in 2023, the smallest increase since 2020.

As consumers increasingly voice their environmental concerns, industries worldwide are actively seeking sustainable alternatives to reduce their carbon footprint. Not surprising, corrugated cardboard packaging has emerged as an environmentally sustainable choice, boasting benefits that other packaging materials simply can’t match. Reports and surveys, including a comprehensive life cycle assessment (LCA) recently published by the National Council for Air and Stream Improvement (NCASI) and the 2023 US Trend Tracker Survey commissioned by Two Sides North America, shed light on the environmental impact of cardboard packaging and illustrate why it is fast becoming the preferred choice of brands and consumers around the globe.

Interested in learning more about Prescribed Fire and how it can benefit your woodlands? Join the Alabama Forestry Foundation and their partners as they host Learn & Burn events across the state.

The Montgomery County & Jackson County Learn & Burns kick off the 2024 burn season – click the links below to register. More counties to come!

Falling interest rates in the closing weeks of 2023 helped to bring buyers off the sidelines and provide a boost for new home sales. Sales of newly built, single-family homes in December increased 8.0% to a 664,000 seasonally adjusted annual rate from an upwardly revised reading in November, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December is up 4.4% from a year earlier. On an annual basis, new home sales totaled 668,000 in 2023, up 4.2% from the 2022 figure of 641,000.

Still need CFE hours? Check out AFA’s online CE Classes available for CFE & PLM credit…. New 2023 Bundle (5 Hours) is avilable now. Click the link below to see all the classes available.