Challenging Lumber Market

In the past few months, lumber market prices have fluctuated up and down and current conditions do not provide a clear direction.

There is a perfect storm of events creating this very challenging lumber market:

• Housing permits and starts consistently report strong

• New residential construction predictions stand solid. This is driven by very low interest rates partnered with extremely low housing inventories in states growing in population.

• Lumber demand is expected to continue in the area of home improvements as people continue to spend time at home and choose renovation projects in place of travel and entertainment

• Unpredictable Covid outbreaks are causing mills to shut down which impacts supply

• The late winter weather in Canada has slowed down logging and the winter storm in the southern states closed many plywood mills.

In our business, crating lumber primarily consists of 1”x4” boards and 7/16” thick sheets of plywood. Currently the cost of 1x4s is 100% higher and plywood is 350% higher than their respective average costs during the June 2018 to July 2020 period.  Higher prices are here to stay until supply can catch up with the demand.

AW2 Crating & Packaging has responded by expanding our nationwide network of vendors to source the highest quality product at the best price. We have invested in new technology to streamline operation and stage internal “Production Kaizen Events” with staff to brainstorm new efficiencies.  It essential to work closely with clients to offer redesign solutions, to maintain our premier standards and to impact costs.

For more information contact Tim Hoy, Director of Business Resources & Marketing, AW2 Logistics, 414.766.7508  or Email: t.hoy@aw2logistics.com | Website: www.aw2crating.com