The Alabama timber industry is successfully healing after the COVID-19 pandemic’s temporary crippling of the market two years ago. The virus’s impact on mill capacity rates and lumber prices started in early 2020, and it is still likely to cause problems in the supply chain from time to time in 2022.
According to a story from the Alabama Cooperative Extension System (ACES), forest landowners in the state are preparing for a new year, but many are wondering what to expect.
ACES Forestry Specialist Adam Maggard said “The forestry industry in Alabama is strong. I don’t anticipate any extreme changes in timber values for the coming year. However, you will likely see typical seasonal variations in prices. Demand is still increasing for timber products across the board.”
The movement of trees from harvest sites to the mills and manufactures that need them is one of the main drivers affecting how much a consumer will pay for a timber product.
But ACES notes that thanks to significant capital investments during the last six to eight years, the state’s forest market is thriving. And as a result, these advancements allow for the establishment of new mills, improvements in overall mill capacities and even transitioning from production of one type of forest product to another based on demand.
“I believe landowners in Alabama should keep an eye out on some key points in 2022,” Maggard said. “These factors include the economy, housing market, timber mills and developments with importing and exporting of timber products.”
He said the first piece of information a forest landowner should know is the details about the tree species and wood types on their property. A landowner should also consider how accessible the timber tract is for harvest as this could affect supply rates and pricing.
Learn more about the Alabama forest industry on the ACES website.