As difficult as it has been navigating through the past 6 months of site shutdowns and additional safety precautions caused by the Coronavirus Pandemic, it has also had some additional side effects that no one had planned for, especially for lumber. Add some devastating wildfires in the Northwest and imported lumber tariffs to that and it’s a recipe for continued challenges.
When stay-at-home orders started going into effect in March, it was expected that construction projects would significantly drop off. What wasn’t accounted for was the sheer volume of DIYers stocking up on wood for home projects at the same time that some sawmills shut down. Many residential contractors that I’ve spoken with recently have also told me that this time has been the busiest they’ve ever been.
According to the Arkansas Democrat Gazette (ADG), lumber futures have risen 50% this year and even reached a record high in August. As of mid-September, lumber prices are up over 170% since April, according to the NAHB.
Amid these historically rising costs, the NAHB has called for President Trump to ease up on tariffs placed on imported lumber from Canada.
The recent wildfires have further exacerbated the issue, not only due to the destruction of the forests, but because the industry is expecting logging bans, closed railroad lines, and additional sawmill shutdowns in the Norhwest, per the ADG. The ERA Forest Products Research expects prices to dip in the 4th quarter, but bounce back up again in 2021.
How has lumber pricing affected your business this year? Tell us in the comment section below!
Shane is the creator of Construction Junkie and an active construction project manager. In his career, he has managed interior remodel projects, site development, construction safety, governmental project compliance, and facility maintenance. He has a strong passion for construction technology and safety, as well as sharing the knowledge or insights he has gained throughout his career.