Lumber Market Update, May 2021

With prices that defy logic, one has to think that we’d already be at a breaking point - Timber composite is up 35% and sheathing composite is up 20% since April 9th. In most cases, it’s become more important to get the material than how much it’s selling for. On the supply side, all in that channel are under an extreme strain of meeting the current demand. Availability of certain products is becoming sparse and US March wood production was the highest in 13 years. These two factors will continue to keep prices elevated as we work into the summer months.

For May, we anticipate that pricing will remain propped up and likely climb as building demand continues to forge ahead. While it is this active, we have to consider the market very volatile, due to high demand and shortages. We urge you to consult us if you have any questions or concerns about your current or upcoming jobs, as it is truly a critical time for planning.

Although there may be limitations as to what can be done under these circumstances, there is one thing that can help alleviate the pain and that is to plan ahead and communicate your needs to your suppliers as soon as possible. Timing is critical, particularly with regard to upcoming price increases and growing lead times, so taking action to get your needs secured well in advance of when you need them is a surefire strategy for keeping your project going.

Communication is more important than ever, so please let us know how we can help you with your project. Thank you for your business!

For more information contact Tim Hoy, Director of Business Resources & Marketing, AW2 Crating at 414.766.7508 or email: info@aw2logistics.com