India

Whereas China is the largest current market for U.S. softwood lumber exports, India very well might be the market with greatest potential. India has one of the world’s fastest growing economies, expanding by roughly 9% each quarter. The construction market in India is expanding by some 20% annually, with a market value of projects under construction exceeding $100 billion. India is massive in terms of population and its middle class is growing rapidly. According to the World Bank, the country currently has a housing shortage exceeding 70 million units.

While New Zealand is currently far and away the biggest exporter of softwood to India, the U.S. share of the market appears to be taking off. In 2010 U.S. exports totaled less than 3.2 mmbf, 2011 exports through just six months are nearly four times that figure, at almost 12.2 mmbf. Total softwood exports in 2010 were up more than 180% over 2009.

Lack of transportation infrastructure within India remains the single biggest obstacle to growing U.S. softwood exports. Another hurdle, more easily overcome, is the lack of familiarity in India of U.S. softwood species and their design and structural attributes. Through American Softwoods, SEC is working to bridge this knowledge gap.