The Financial Post reports in its Thursday edition now that the U.S. economy is improving and housing starts are up, Western Canadian forest companies are looking for good assets to buy. The Post's Mary Teresa Bitti writes for the most part, those opportunities are in the Southern states. West Fraser Timber and Canfor each acquired two sawmills in Arkansas and Georgia respectively this year. While the conventional dimensional lumber market has returned to health, pulp and paper markets are still on the mend. For the lumber companies that are benefiting from a U.S. comeback and increasing demand from China, the M&A push into the U.S. is not just about growth. It is about positioning themselves for the future by diversifying supply. Industry players remain cautious, acquiring capacity in specific industry niches where they see opportunity. American import restrictions on softwood lumber remains a battle. Acquiring U.S. operations is one way to help secure supply and market share in that market. What does increased M&A tell us about the sector? "It's a good news story from an economic perspective as many forestry companies are on a more solid footing than five years ago," says Fasken lawyer Peter Finley.