We still saw gains nearly across the board, but most were a fraction of a percent as opposed to the high single and sometimes double-digit increases we have become accustomed to.
The challenges our industry is facing has started to garner more and more national attention, with United States Commerce Secretary Gina Raimondo pledging to resolve lumber shortage/pricing challenges:
“The residential construction industry is facing serious challenges because of supply chain constraints and the impact on home building, especially with respect to affordable housing. Today was a productive, positive conversation to begin to address these challenges,” Secretary Raimondo noted. “We take these issues seriously, and my staff and I are committed to continuing to work with all stakeholders, including reviewing relevant data and conducting analysis to identify targeted actions the government or industry can take to address supply chain constraints.”
Click HERE link to the entire article from lbmjournal.com
CNBC produced an excellent 12-minute video diving into the reasons why we’re dealing with such a housing shortage, one of the biggest factors in rising material costs. It’s very informational and helps us understand what we’re seeing across the country and how we’re feeling the effects.
Watch the video by clicking HERE
There have been talks of an increase on tariffs for Canadian softwoods, however, it seems that resistance within the government is mounting, as most are seeing it as throwing more gasoline on a commodity market that is already on fire. I am optimistic that we won’t see the additional tariff, but it’s too soon to know for sure.
The other trend that we’re continuing to see is shortages of various materials, from finished goods to raw goods, it seems they are all open season. The most recent challenge we are experiencing is in rebar. Currently, we have adequate inventory to serve our customers, but new stock is seeing a price spike, and several of our normal suppliers are either not quoting materials or only offering limited quantities. Again, we believe that we can continue to service our customers, so the sky certainly isn’t falling, but we want to keep you abreast of the challenges we face.
As always, this e-mail content is not financial advice. Simply data to help you be better prepared. Our goal is to create more informed builders and homeowners to properly price and budget for future jobs and projects.
We will continue to update you on changes in the commodity market. Displayed above are the latest graphs.
Angeles Millwork and Hartnagel Building Supply see our customers as business partners, and their success is, in turn, ours. That is why every month, we will publish a commodity pricing chart on our Facebook page and in our monthly newsletter. The chart will represent a correlation of average pricing trends over the past year of Douglas Fir 2×4, Pressure Treated 2×4 Lumber, 7/16” OSB, and ½” CDX.