Many hardwood lumber sellers are optimistic about better business in 2012, and we agree. Much is riding, however, on the speed at which both export markets and domestic lumber production accelerate this spring.

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Domestic lumber demand won’t improve much until 2013, so it will be incumbent on domestic producers to respond cautiously when log availability improves…despite present tightness in many lumber items. While we are encouraged by U.S. and global economic improvements, including growth in domestic manufacturing, be cautious of spin during this election year.

The official U.S. unemployment rate has now dropped for five months running, but the population is adding people at a faster clip than jobs. Nearly 1 million fewer people aged 18-64 were employed this January than in January 2009.