Page 19 - Mar-Apr 21 - Reporter - web optimized

"..in many cases the fluctuation in pricing is hourly...how do you price a house package, deck
package or any other renovation requiring wood products?"

have worked in this industry for over business heated up. Distributors were and we were all in a position of not
I 40 years and have experienced the in the same position with inventory to understanding or realizing the full
ups and downs of market upswings ship to their customers sitting in their impact of the pandemic.
and contractions due to products yards and warehouses. Lumber mills closed and laid off
shortages, higher demand than most of their employees; building
forecasted by consumers, foreign Early spring, 2020 supply and hardware stores were
customers and weather; but we are Building supply yards were sitting doing limited business with most
in a situation that none of us have with inventory of white lumber, cedar, implementing curbside pick up;
experienced before. treated and other species in their and most retail was experiencing
The U.S. is reporting an increase yards waiting for the spring business a significant reduction in sales and
in lumber pricing of 188% (fortune demand to kick in. profits. Consumers, being secluded in
magazine/Random Lengths) adding their residences, were apprehensive to
at least $24,000 to the price of a go out and risk being exposed to the
typical, new single-family house March, 2020 virus.
(National Assoc. of Home Builders) The Covid-19 virus became
since the beginning of the pandemic. virulent throughout the country and April - September 2020
While the economy in the U.S. is particularly in Ontario and Quebec. Recognizing the impact of
stagnant, the demand for new homes All provinces initiated a full lockdown the lockdown on the citizens of
and renovations has exponentially on the economy to restrict the Canada, the federal and provincial
increased due to low interest rates communication of this deadly virus. governments implemented a
and prospective homeowners wanting Most non-essential businesses were number of relief programs to
to get into the market, existing told to close and only allow essential provide assistance to individuals
homeowners upgrading and buying employees into their premises;
nicer homes and the
DIYers renovating
existing properties.
Canada is experiencing
the same pressures on
the supply chain.
Looking back over
the past year and a half,
you need look at the
supply chain calendar to
see how it was impacted
by the pandemic.

Fall, 2019
Lumber producers
and treaters were busy
shipping booking orders
to their distributors and
retail/builder customers
so the retail sector
would have product
on the ground when
the spring business
cycle started. At this
period of time, the
mills/treaters were
producing product
to have available to
replenish the retail
and construction
industry once the spring
A large timber factory stands still during the COVID-19 lockdown
www.lbmao.on.ca LBMAO Reporter - March-April 2021 19