During the COVID-19 pandemic, lumber suppliers stopped taking orders. With less supply, prices went up. Distributors are now struggling to meet rising demand.
Issaquah Cedar and Lumber, located just outside of Seattle, gets wood shipped in from Canada.
During the COVID-19 pandemic, however, suppliers struggled with staffing shortages and stopped taking orders. With less supply, prices went up.
“The cost of inventory is twice what it was previously,” said Issaquah Cedar and Lumber Owner Chad Amble. “So, just being able to afford to carry that much inventory can be a little bit difficult.”
Distributors are paying a lot more for lumber compared to three years ago. (Fox News)
Amble used to pay $8 for a 4 x 8 foot piece of plywood. Now, he’s paying over six times as much. That’s not the only problem. Demand for lumber is also on the rise.
US HOUSING MARKET’S UNDERPRODUCTION CRISIS GETTING WORSE, NEW ANALYSIS FINDS
“Sales across the building industry spiked,” Amble said. “All the Do it yourselfers were coming out to do their own projects, which created this huge demand for material. But, there was no production behind it to supply it.”
Lumber mills are struggling to meet a rise in demand. (Fox News)
The shortage is felt beyond the lumber mills, like with home improvement companies.
HOUSING STARTS PLUNGE IN JUNE TO LOWEST LEVEL IN 9 MONTHS
“Six months ago, we were still getting delivery times for some wood, windows and doors a year and a half out,” said Window Fellas Owner Petr Gvozd.
Gzovd buys lumber from Amble for window and door replacements. He used to order every few weeks. Because of shipping delays, now it’s several months in advance. This makes scheduling renovations tougher.
GENERAL MOTORS CEO MARY BARRA DISCUSSES EV PRODUCTION AND TACKLING SUPPLY CHAIN CHALLENGES
Home improvement companies are waiting several months for the materials they need for renovations. (Fox News)
“It was difficult to get people on board to do the job if we were not able to give them exact dates,” Gvozd said. “Like when we’ll have all the stuff that we need to do the job.”
This is an uncharted territory for people and businesses who depend on lumber.
CLICK HERE TO READ MORE ON FOX BUSINESS
“We’re at a point now where I’ve never been before,” Amble said. “The building industry is going to have to start adjusting to what’s available on the supply side.”