Increasing costs of raw timber in 2021
Posted on June 30, 2021
Due to the continuing Coronavirus pandemic, prices for timber and lumber have increased in America and across the world leaving many businesses facing a potential shortage.
Many sawmills had to cease production of timber over a sustained period because of the pandemic and as a result supply has declined dramatically.
Couple this with the fact that the housing market has grown post pandemic and so demand has increased. Global lumber has become a much sought after commodity with demand outstripping supply.
Prices of the material have now soared with an estimated growth of 500%.
In the U.S. raw timber used to be range from $200 - $400 for a 1,000 board feet but now fetch prices in excess of $1,000.
Furthermore, estimates suggest that the raw materials are still expected to increase by a further 500% over the coming year.
China has also reported an increase in demand for lumber as it's housing industry flourishes, buying large quantities leaving more fragile economies to struggle in it's wake.
Here in the UK increased demand of lumber was also detected as reported in the Guardian:
"A record surge in the cost of timber, bricks and steel sent construction industry costs soaring in May as new orders across the sector grew at the fastest pace in 24 years.
Severe shortages of essential building materials lay behind the increase in prices as the combined impact of Brexit and the pandemic caused supplies, many of them imported, to be held up on their way to the UK."
https://www.theguardian.com/business/2021/jun/04/building-material-costs-soar...
As a result, prices have had to increase here at Woodcraft UK. Normally we only increase prices once a year in line with inflation, however we have had no choice but to adjust the costs half way through this year, something unheard of in our 31 years of business. We have kept our price increases to an absolute minimum and hope that our customers know we are doing everything we can in order to pass on as fewer increases as possible.