When COVID-19 hit, there were many industries that struggled to keep up. The lumber supply market, for example, became a very competitive one and experienced many surprising issues that still impact it today. Continue reading to learn about the different problems the pandemic caused the market and to better understand why this industry is still struggling to get back on its feet today.
The biggest thing that many homeowners noticed about the wood industry was a noteworthy increase in prices. This problem was common in many markets, and lumber was no different. It became harder for homeowners and construction firms to afford the projects they were undertaking. Understanding what has driven this cost up can help you better grasp the complexities of this market.
Higher Demand Goods
According to Science Direct, the 300% increase in lumber prices during the pandemic occurred due to heavier demand, not supply limitations. That increase was driven by people looking to improve their homes in various ways. As a result, the lumber supply market has seen a major logistics crisis that is still in effect.
More Limited Supply
Since demand increased during the pandemic, wood supply levels have decreased heavily in recent years. That has further driven up prices because, as previously mentioned, high demand had an impact on wood costs. As a result, supplies have become far more limited, and there’s still a shortfall that suppliers are working hard to manage by increasing their operational scope.
Expanded Wood Clearing Methods
Ever since the early days of the pandemic, wood companies have had to work harder to find high-quality wood supplies. As demand and prices increased, it was important to expand to areas where they may not have worked before. Just as importantly, high demand for reliable and green-friendly wood preparation has also hit the market in recent years.
These different factors have all affected the lumber supply across the nation and the world in various ways. While the pandemic has slowed down, and many of these problems have eased up, COVID-19 is still a real issue that may still impact prices in years to come. That being said, the professionals at Reed Lumber Company do all that we can to ensure fair prices. Reach out to us for all of your lumber needs!