Timber companies in America’s north-west will look to the repair, maintenance and improvement (RMI) market if an expected rise in interest rates slows down new housing construction.
The US Federal Reserve is predicted to raise the benchmark interest rate from 1%, possibly as early as this month (June).
New homes are the biggest outlet for timber companies, consuming some 40% of the wood product market, with RMI second with 35%.
Analysts believe the RMI market represents a steadier market than housing and is less cyclical.
