FOR IMMEDIATE RELEASE
August 26, 2020
Eric Murphy, Sales Manager emurphy@eclumber.com |
Correct Phone Number (603) 362-1131
The lumber market nationwide continues to experience unprecedented price spikes and supply shortages
East Hampstead, NH – As we enter the Fall building season and experience another month of the COVID-19 pandemic, the lumber market is looking at double-digit increases in the cost of lumber, a dwindling supply, and builders and supply stores are feeling the effects and for good reason.
Lumber suppliers pulled back production early in the pandemic in anticipation of slowed demand. What the suppliers did not anticipate was how enthusiastically the building industry would react to the increased demand for new and upgraded living space. Once it became clear that the demand for lumber and building supplies was not slowing, but instead continued to skyrocket, lumber suppliers began working in earnest to catch up, but demand continues to outpace production capacity.
Housing starts are up. A combination of pre-existing pent up housing demand and, according to the National Association of Home Builders (NAHB), what seems to be a migration from densely populated cities to more spacious suburbs, along with lower interest rates are driving new home builds at a frantic pace.
On the remodeling front, “Home” is becoming more important than ever. People are looking for more living space. Some people are bringing older parents to live with them. While others, perhaps due to job loss and housing instability, are moving back home to live with their parents. Then there is renewed interest and focus on remote working and learning environments, causing homeowners to try to make long term work/learn-from-home space from existing square footage.
All the while, lumber yards across the nation continue to work tirelessly to forecast anticipated demand and are trying to secure supply in uncharted territory, due to the dwindling supply, increased demand, and the fact that prices are forecasted to continue to climb. According to the NAHB “Rapid increases in lumber have caused the price of building material for the average new single-family home to increase by more than $16,000 since April 17.”
East Coast Lumber is feeling this pressure. Daily, our buyers are watching trends, trying to forecast demand, negotiating with vendor partners for supply, while trying to meet the demands of our customers and keep the yard stocked and costs down as much as possible. It’s never an easy task but has become more complex in the current environment. Eric Murphy, Sales Manager at East Coast Lumber says, “We are working with our customers to find ways in which to meet current expectations on projects. It’s critical to understand the timeline of various projects and try to project future material costs accordingly. Consistent communication with our business partners is essential during times of volatility in the market. Due to our experience in the market, we have confidence in how to manage these situations, but right now we are in unprecedented territory.”
At some point, the market demand will begin to cool. Until then Eric says, “East Coast Lumber is committed to helping people in the communities in which we serve and would like to thank its customers for their continued support during this time.”
Below are links to other articles on this matter that may help anyone understand that this is truly an industry issue and not isolated to any one dealer or region.
