Reasons for High Lumber Prices
To All Our Valued Customers, Over the past few years, the Covid 19 Pandemic has forced us to adapt and change the way we do things on a day-to-day basis. Florida Lumber is no exception. To make sure that we remain strong and competitive in the market for the years to come, Florida Lumber has had to adjust and change our vision for the future. In the last 2 years, we have stopped selling Sheetrock and drywall products, roofing felt and roofing materials, and have even closed on Saturdays.
Over the last few months, we have been transitioning our way out of the door supply business so on August 31, 2022, our door shop will stop assembling doors. We will continue liquidating our doors from inventory until we are out of material.
Some customers have asked if we are closing or even moving locations. To set the story straight, we are not closing or selling the business and we are not moving. These changes are all part of our new vision and path to continue serving South Florida and increasing our footprint in the construction supply industry.
Our focus is going to be on Lumber, Construction Materials, Rebar Fabrication and Rebar Accessories. As we have liquidated some of the items that we don’t sell anymore we have created more space to buy a larger volume of our core items and pass on the savings to our customers.
In the next year you will start seeing changes that will help improve our ability to serve you, our customers. We appreciate your business and your patience as Florida Lumber’s new vision becomes reality.
A Todos Nuestros Valiosos Clientes En los ultimos anos, la pandemia de el Virus (Covid 19) nos ha forzado a adaptarnos y cambiar la forma de hacer cosas en el dia a dia. Florida Lumber no ha sido una excepcion.
Para asegurarnos de mantenernos fuertes y competitivos en el mercado en los anos venideros, Florida Lumber ha tenido que ajustar y cambiar nuestra vision para el futuro. En los dos ultimos anos hemos dejado de vender los productos de yeso (sheetrock), paneles de yeso (drywall), tela asfaltica (roofing felt), materiales de techo y cerramos los Sabados. En los ultimos meses, hemos estado en transicion para salir del negocio de suministro de puertas, en Agosto 31, del 2022 nuestra tienda de puertas dejara de construir y/o cortar puertas. Vamos a continuar liquidando nuestro inventario de puertas haste que terminemos todo el material. Algunos de nuestros clientes han preguntado si estamos cerrando o si nos estamos moviendo a otra localidad. La verdad es que no estamos cerrando, no estamos vendiendo y no estamos cambiando de localidad. Estos cambios son todos parte de nuestra nueva vision y camino a continuar sirviendo al estado sur de la Florida y incrementar nuestras huellas en la industria de suministros de construccion.
paneles de yeso (drywall), tela asfaltica (roofing felt), materiales de techo y cerramos los Sabados.
En los ultimos meses, hemos estado en transicion para salir del negocio de suministro de puertas, en Agosto 31, del 2022 nuestra tienda de puertas dejara de construir y/o cortar puertas.
Vamos a continuar liquidando nuestro inventario de puertas haste que terminemos todo el material. Algunos de nuestros clientes han preguntado si estamos cerrando o si nos estamos moviendo a otra localidad.
La verdad es que no estamos cerrando, no estamos vendiendo y no estamos cambiando de localidad. Estos cambios son todos parte de nuestra nueva vision y camino a continuar sirviendo al estado sur de la Florida y incrementar nuestras huellas en la industria de suministros de construcción.
2431 N.W. 20TH ST.
MIAMI, FL 33142
PHONE: (305) 635-6412
Sales Fax: (305) 633-4054
Accounting Fax: (305) 635-3723
Email: sales@tloridalumber.com
There are multiple reasons associated with the rise in lumber prices all over the world. In this article, we will be highlighting some of the reasons for the steady rise in the price of lumber.
Lumber prices have gone up over the past few years all over the world. Though it was increasing steadily over the past few years, the price increased rapidly in the course of the last few months in 2020. This can be attributed to the global pandemic that has been wreaking havoc on economies and businesses all over the world. The lumber prices have gone up by 130 percent and that has also simultaneously increased the cost of single-family houses.
There is an increase in demand for lumber due to the rise in construction work all over the world. This can be attributed to the growth in the Gross Domestic Product of many countries. Apart from this, several other factors have contributed significantly to the increase in lumber prices.
Additional read: How to buy quality Lumber?
Read on to know how the rise in the price of lumber will affect the cost of housing worldwide.
Why are Lumber Prices High? (+Top Reasons)
1. Increased Demand
There is a steady increase in demand for lumber all over the world. This demand has grown exponentially over the last couple of years. The supply has not reached the level of demand and hence there is a gap between supply and demand which is leading to a rise in prices. There is a construction boom happening all over the world due to the rise in Gross Domestic Product in many countries. This has increased the construction of houses leading to an increase in demand for lumber.
2. The Pandemic
Due to the pandemic, lumber prices have gone up simply because lumber was not available for supply easily like before. Since there were lockdown and fewer people were opening their businesses, the supply was also less than before. During the pandemic, many restaurants and food joints are making outdoor seating arrangements for their guests. This has led to the rise in demand for lumber which has significantly increased its price.
Hence, the rise in lumber prices happened.
3. Lumber Production
Lumber production has also become very expensive. Labor, containers, transportation, and other associated costs have gone up. This has increased the cost of lumber regardless of the demand and supply scenario.
4. Shutting Down of Other Industries
Home goods and paper manufacturing are some industries that have seen downturns and this has reduced their requirement for lumber. Raising the import duties on lumber in different countries has also led to reduced exports. This has led to less supply of lumber and hence the price rise.
Additional read: Tips to choose and buy wholesale lumber
The Current Lumber Prices
Lumber prices in some countries have doubled and tripled since last year all over the world. OSB board prices have gone up in September 2020 thrice than what it was in September 2019. The other associated prices have also gone up. Western SPF 2x4s has risen to 158% from 2019.
The Forecast of Lumber Prices
Lumber prices are expected to remain high throughout 2020. This is due to the chaotic situation that happened due to the global pandemic. Experts feel that costs will come down after this. Since Covid-19, things have become unpredictable and uncertain. Several things have to happen for the price to come down. For instance, in the US, the production of lumber has to increase to cover the loss of supply from Canada.
The shutdowns in the lumber industry also have to come to an end. The timber producers also have to increase their production to bring the price of the lumbers. If these things will start to happen, there will be a fall in lumber prices. This will all depend on when our lives will return to normal. Since no one knows when that will happen, no one knows how the prices will be affected.
Additional read: Guide for Buying Lumber from a Disrtributor
Lumber Prices Affects Housing Cost
For a builder, the rise in lumber prices is bad news. With the rise in the price of lumber, this means that the housing cost will go up and the mortgage cost will go up as well. It has been found that the price of single-family homes has gone up by $16000 on average. However, the important news is that the buyers are agreeing to pay this even high price.
Even in 2017 and 2018, housing prices were also going up. It was 7% for the single-family houses. However, in 2020, it has gone up by 17 percent.
The mortgage rates are very low during the pandemic and this has led to the steady demand for houses among the buyers. The lumber prices which have gone up very much due to the pandemic are expected to come down as soon as this ends.
There is a demand for new single-family homes among the customers despite the global pandemic that is going on. This will mean that the construction builders will be able to withstand the volatility in the lumber market and build homes for the customers who are willing to buy homes even in this situation.
Additional read: Difference Between Buying Lumber at Lumberyard and Big Box Store
Conclusion
There are multiple reasons for the rise in lumber prices. However, the most dominant one in recent times is the pandemic. Once the pandemic is over, it will be easy to determine the fate of the lumber prices in the world.
Are you looking to buy lumber? Contact us to get the quote.