Wednesday, August 5, 2020

Builders and Off-site Construction Industry Hit with Dwindling Lumber Supply and Rising Prices

Time to get real everyone. COVID-19 didn’t just kill the retail industry across the US, it is also dealing hit after hit to anyone that uses lumber. 

The cost of lumber has increased by more than 50% since the pandemic started. Deliveries are taking a long time to arrive and for site builders, those costs can mean the houses they have under contract and completing right now will see as much as a 5% increase in their cost. Try to explain that to a new homeowner waiting for their house to be finished.

Modular factories are also being slammed with rapidly increasing costs. I spoke with a modular factory owner that he is now seeing suppliers walking into his office with immediate price increases without a buffer to purchase. The increases happen when the rep walks into the office.

Sheet goods are up almost 50% and treated lumber is getting hard to find.

Interior doors, kitchen cabinets and hardware of all types are seeing rising costs. 

There doesn’t seem to an end in sight at the moment for either the scarcity or the rising costs of building materials but as the old saying goes “A rising tide lifts all ships”

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