MONTREAL – Stella-Jones says a strengthening North American economy and improving U.S. housing market are putting a strain on the supply of lumber used for its railway tie and utility pole businesses.
However, the Montreal-based company said it can meet the challenge because its strong inventories and procurement network should allow it to meet demand at an optimal cost.
Supply is constrained because many mills closed during the housing crisis over the last few years, said CEO Brian McManus, who is confident that existing mills will increase capacity or new mills will be started.
