Lumber prices have continued to increase for months. Prices have nearly tripled since this time last year. And this is causing large concerns for contracting companies, manufacturers, and other industries that rely on material prices. The price of lumber is continuing to rise and many people worry it will never decrease to pre-COVID pricing. This has large impacts on shipping and crating, the housing market, and construction in general.
The pandemic continues to affect this country and our economy in thousands of different ways. It may not even be possible to fully list or understand the multitude of effects this pandemic has had on commerce. In terms of lumber, there was an initial spike in demand and a decrease in supply during the summer of 2020. With so many homeowners living at home and the added benefits of stimulus checks, many homeowners tackled their home improvement projects. Simultaneously lumberyards around the country and around the world were closed for months and only reopened with large restrictions placed on their staff. This decrease in supply and increase in demand garnered a lot of news about the staggering rise in lumber prices as well as other construction prices. For perspective, in June of 2020, the cost for a thousand board feet of lumber was less than $500 and is now $1,100 (April 2021).
Different industry experts have different projections for when lumber prices could stabilize and start to decrease. Many still are concerned that a return to pre-pandemic prices may not be on the horizon at all. Some economic researchers are predicting that prices will fall over the course of the next 18 months. Right not the two mitigating factors are how will supply and demand change. The lumber industry should hopefully rebound by the end of 2022. With the end of the pandemic insight there are hopes that lumber mills will be able to return to full capacity and full production to hopefully meet the demand. Right now the hope is for lumber prices to decrease by the end of this year as supplies can increase, and for prices to fully stabilize sometime in 2022 as the demand returns to normal. However,
Lumber is not the only material that is seeing spikes in pricing during this pandemic. Learn more about different factors that affect shipping, manufacturing, and more by following the Crate This Newsletter & Blog. And for a free quote on commercial storage, crating, and packaging, please give us a call.