{"id":54724,"date":"2020-08-16T14:35:33","date_gmt":"2020-08-16T19:35:33","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54724"},"modified":"2020-08-16T14:35:33","modified_gmt":"2020-08-16T19:35:33","slug":"got-wood-lumber-prices-explode-to-record-highs-amid-supply-chain-screw-ups","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54724","title":{"rendered":"Got Wood? Lumber Prices Explode To Record Highs Amid &#8220;Supply Chain Screw Ups&#8221;"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/economics\/got-wood-lumber-prices-explode-record-highs-amid-supply-chain-screw-ups\"><span class=\"field field--name-title field--type-string field--label-hidden\">Got Wood? Lumber Prices Explode To Record Highs Amid &#8220;Supply Chain Screw Ups&#8221;<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\">When builders go to the lumberyard, they expect two-by-fours in ample supply. <a href=\"https:\/\/www.galvnews.com\/news\/free\/article_457bb5f1-ec84-550f-8505-9a2f834163ae.html\">As Galvnews.com reports<\/a>, it\u2019s like expecting to find milk at the supermarket.<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>But, in recent months, something has changed&#8230; dramatically&#8230; Since the lows in early April, the price of Lumber (futures) has exploded 200%&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm3414.jpg?itok=0BUjhNOG\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm3414.jpg?itok=0BUjhNOG\" data-link-option=\"0\"><picture><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm3414.jpg?itok=LvN1cZ9t 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 1280px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm3414.jpg?itok=LvN1cZ9t 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 480px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm3414.jpg?itok=LvN1cZ9t 1x, https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm3414.jpg?itok=LvN1cZ9t 2x\" type=\"image\/jpeg\" media=\"all and (min-width: 1024px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm3414.jpg?itok=LvN1cZ9t 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 768px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm3414.jpg?itok=0BUjhNOG 1x\" type=\"image\/jpeg\" \/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm3414.jpg\" alt=\"\" width=\"500\" height=\"264\" data-entity-type=\"file\" data-entity-uuid=\"4808f8a2-bcc9-4d2e-bf67-af890681a8a0\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p><em><strong>&#8220;We had to pay three times the price,&#8221;\u00a0<\/strong><\/em>exclaims Ron Woods, the owner of Firehouse Builders, a general contracting company that specializes in building fences, decks and other smaller projects.<\/p>\n<p>In fact, the surge in prices sent Lumber to its most expensive&#8230;ever!<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm96C9.jpg?itok=6vVcPZYr\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm96C9.jpg?itok=6vVcPZYr\" data-link-option=\"0\"><picture><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm96C9.jpg?itok=3ZuFmPNs 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 1280px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm96C9.jpg?itok=3ZuFmPNs 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 480px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm96C9.jpg?itok=3ZuFmPNs 1x, https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm96C9.jpg?itok=3ZuFmPNs 2x\" type=\"image\/jpeg\" media=\"all and (min-width: 1024px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm96C9.jpg?itok=3ZuFmPNs 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 768px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm96C9.jpg?itok=6vVcPZYr 1x\" type=\"image\/jpeg\" \/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm96C9.jpg\" alt=\"\" width=\"500\" height=\"266\" data-entity-type=\"file\" data-entity-uuid=\"246fe0d5-9f9d-43f1-9c30-ca44ace2e393\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p><strong>A building boom?<\/strong>\u00a0This is &#8220;great news&#8221; some might say as it indicates &#8216;demand&#8217; is high and the economy is &#8220;getting back to normal,&#8221; right?<\/p>\n<p><strong>Wrong!<\/strong><\/p>\n<p><a href=\"https:\/\/www.galvnews.com\/news\/free\/article_457bb5f1-ec84-550f-8505-9a2f834163ae.html\">As Woods explains<\/a>,\u00a0<em>\u201cthe explanation they had for us was that\u00a0<strong>COVID-19 shut down the plants that treat the wood, and that finally caught up<\/strong>.\u201d<\/em><\/p>\n<p>So, it&#8217;s the supply stupid! And looking at the US construction spending data confirms it is anything but &#8216;demand&#8217;:<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm21C3.jpg?itok=UFlj91AM\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm21C3.jpg?itok=UFlj91AM\" data-link-option=\"0\"><picture><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm21C3.jpg?itok=mepW2VUW 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 1280px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm21C3.jpg?itok=mepW2VUW 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 480px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm21C3.jpg?itok=mepW2VUW 1x, https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm21C3.jpg?itok=mepW2VUW 2x\" type=\"image\/jpeg\" media=\"all and (min-width: 1024px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/bfm21C3.jpg?itok=mepW2VUW 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 768px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm21C3.jpg?itok=UFlj91AM 1x\" type=\"image\/jpeg\" \/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm21C3.jpg\" alt=\"\" width=\"500\" height=\"267\" data-entity-type=\"file\" data-entity-uuid=\"a674c0fc-ed08-4b3f-96f9-5a784a85e3ec\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<blockquote><p><em><strong>\u201cThe supply chain was screwed up,\u201d\u00a0<\/strong><\/em>said Wilson, the owner of Wilson Construction in Galveston.<\/p>\n<p>\u201cDimension sizes were in limited supplies; even something as simple as a two-by-four-by-twelve Southern yellow pine treated was in extremely short supply.\u201d<\/p><\/blockquote>\n<p>In fact,\u00a0<a href=\"https:\/\/www.galvnews.com\/news\/free\/article_457bb5f1-ec84-550f-8505-9a2f834163ae.html\">as Galvnews.com reports<\/a>,\u00a0<strong>the price changes are affecting all sorts of basic building materials<\/strong>, said Al Fichera, the owner of Fichera Builders in Galveston. In the past two weeks, sheets of plywood have gone from $15 a sheet to $34 a sheet, he said.<\/p>\n<p><strong>It\u2019s normal for the price of building supplies to fluctuate, he said, but that kind of spike is unusual.<a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2020-08-16_9-12-51.jpg?itok=9utRjE5c\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/2020-08-16_9-12-51.jpg?itok=9utRjE5c\" data-link-option=\"0\"><picture><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=xXjjndqx 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 1280px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=xXjjndqx 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 480px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=xXjjndqx 1x, https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=xXjjndqx 2x\" type=\"image\/jpeg\" media=\"all and (min-width: 1024px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=xXjjndqx 1x\" type=\"image\/jpeg\" media=\"all and (min-width: 768px)\" \/><source srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2020-08-16_9-12-51.jpg?itok=9utRjE5c 1x\" type=\"image\/jpeg\" \/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2020-08-16_9-12-51.jpg\" alt=\"\" width=\"500\" height=\"365\" data-entity-type=\"file\" data-entity-uuid=\"c3a801ba-49f2-4770-bb78-52877135ab6a\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/strong><\/p>\n<p>The situation now is that builders have to search wide and act fast to obtain the material they need.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Got Wood? Lumber Prices Explode To Record Highs Amid &#8220;Supply Chain Screw Ups&#8221; When builders go to the lumberyard, they expect two-by-fours in ample supply. As Galvnews.com reports, it\u2019s like expecting to find milk at the supermarket. But, in recent months, something has changed&#8230; dramatically&#8230; Since the lows in early April, the price of Lumber [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[426,30201,3237,30200,4318],"class_list":["post-54724","post","type-post","status-publish","format-standard","hentry","category-economics","tag-inflation","tag-lumber-futures","tag-supply-chains","tag-wood-prices","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54724"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54724\/revisions"}],"predecessor-version":[{"id":54725,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54724\/revisions\/54725"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}