A few months ago we covered a story on how the pandemic greatly impacted lumber prices in America. Due to the fact that many American lumber yards were closed in early spring, and many homeowners spent their downtime on home improvement DIY projects, the lumber prices in America skyrocketed to heights they had not been in years. The home construction industry saw huge rises in profits by mid-summer and now in September, we are still feeling the effects of the last six months’ low supply and high demand.
Starting back in March, lumberyards throughout the country were forced to close. Depending on where they were located, some yards were able to reopen after a few months. But others had to stay closed even longer. This is especially true in California where cases continued to surge throughout the summer. These circumstances greatly impacted America’s supply of lumber. However, economists predictions on how long the lumber shortage would last were underestimates. Many expected this slump to be handled quickly and for things to return to normal by late summer. An increase in DIY projects, home improvement, and construction quickly escalated the supply/demand issue. No one could have predicted how extended lockdown would affect lumber demand in America.
Many believed that the housing market would slump or decrease when the pandemic started to spread in early 2020. But throughout the summer there was a surge in contracting projects throughout the country. Sales of new homes hit their peak since 2006. About 40% of our nation’s lumber supply is used for construction and remodeling projects. With such a large uptick in these projects, we are still seeing lumber prices surge. This echoes into many different industries.
Shipping services rely on lumber. Whether it is wooden pallets or crating, wood is usually an inexpensive but high-quality packaging material that is commonly used for shipping. However, with the surging prices of lumber, there is an increase in the material costs associated with shipping. For this reason, many companies are looking into how to save on shipping and recoup the increased costs of producing crates and wooden pallets. This is why many companies have partnered with freight forwarders and with crate manufacturing companies that can make reusable crates.
Crate This provides shipping crates for companies throughout the northeast. All of our crates are custom made to perfectly fit and protect our client’s goods. All of our crates are made out of high-quality materials so they can withstand multiple trips and continue to provide ample protection. For quotes please contact our team through our online contact form.