News that housing starts in the U.S. fell 15 percent last month is just latest blow against the region's lumber companies. So why is one of the world's richest men doubling-up his investment in British Columbia's largest lumber firm?
The weekend Globe and Mail has an excellent overview of the challenges and prospects facing Canada's big producers. It explains that billionaire Jim Patterson, who now owns a quarter of Canfor, likely sees opportunities to consolidate the industry. (The nine biggest Canadian firms have a market value of C$11 billion, $6 billion less than Weyerhaeuser alone, the article says.)
Profits have been killed by slumping demand along with higher costs for energy a rising Canadian dollar. The theory is that the crisis could force Canada's politics to allow large-scale consolidation for the first time.