1. Since the start of the pandemic in March 2020, how much have lumber prices appreciated?
2. What has been the impact on construction and building contractors?
3. What is the price in US dollars per thousand board feet now and a year ago?
4. What societal conditions have caused such a price shock?
5. Where is most of America's softwood lumber produced?
6. List three demand factors impacting the lumber market:
7. What is the future forecast on lumber prices?
8. Using examples from chapters 3 & 4, the supply, demand, and market equilibrium chapters,
construct a supply and demand curve that represents the thinking, the logic of what happened
in the US Lumber market from 2020 into the start of 2021. Show using arrows,
the movement of prices and quantity (of 1,000 board feet of lumber) and explain what's going on
in a few sentences.
Announcements- Inan (68) - autvar. F assign06_Spring2021_Lumber_email.pdf allow Open with "A lot of mills curtailed fairly heavily early on in the pandemic, thinking demand would collapse, and that didn't happen," Jalbert said. "And now they've been trying to play catch up this whole time." House owners have been renovating and taking on DIY projects at furious speeds, while record low interest rates qualify more potential buyers to purchase new properties. "It's really a double-edged sword, because demand hasn't been this high in a long time," Troy said. While the lumber shock is a thorn in the side of contractors and builders, it's ultimately the buyer who will likely absorb the additional costs, Troy said. For Sean Cromarty, a realtor and home-flipper in Monmouth County, the record lumber prices and long lead times make it harder for him to justify investing in various properties, especially those in need of fixing up. As contractors extend delivery estimates, Cromarty said the entire renovation process drags with it, sending money down the drain. "Depending on a property, that can be thousands of dollars every day that that supply-chain issue costs you," he said. So when can DIY'ers and contractors expect the price shock to correct? Experts say not to get your hopes up anytime soon. It will likely take at least a year for mills to reach full capacity again and for prices to return to normal pre-pandemic levels, though it's hard to predict considering supply-chain constraints have persisted into 2021, Jalbert said. "It's going to make it really hard for prices to correct in the near term," Jalbert said. "In three to six months, you might see some softening, but we're not going to return back to $300 for a thousand board feet by the summer." Enzo E DiCos ics & finance Page 21 GOLETXWOSOLPAGODA MacBook Air8.47 GB 8 8 7 ) 42% 0 . . . mail.google.com C umber market ass. Micro #6 - Google. Ask a Gunation BookConnect Rock Hair Salon Transac.. Milestone # 2 - Go.. Announcements - Inbox (68) ~ aalvar assign06_Spring2021_Lumber_email.pdf Open with 4 "The labor market's just in complete chaos," Jalbert said. Many sawmills have been forced to halt production over the last year due to positive COVID-19 cases. Most of America's softwood lumber, used mostly in construction and renovation, comes from mills in the U.S. South, the Pacific Northwest and Canada, Jalbert said. And beyond issues in supply, producers never anticipated the meteoric rise in demand that would follow. "A lot of mills curtailed fairly heavily early on in the pandemic, thinking demand would collapse, and that didn't happen," Jalbert said. "And now they've been trying to play catch up this whole time." House owners have been renovating and taking on DIY projects at furious speeds, while record low interest rates qualify more potential buyers to purchase new properties. "It's really a double-edged sword, because demand hasn't been this high in a long time," Troy said. While the lumber shock is a thorn in the side of contractors and builders, it's ultimately the buyer who will likely absorb the additional costs, Troy said. For Sean Cromarty, a realtor and home-flipper in Monmouth County, the record lumber prices and long lead times make it harder for him to justify investing in various properties, especially those in need of fixing up. As contractors extend delivery estimates, Cromarty said the entire renovation process drags with it, sending money down the drain. "Depending on a property, that can be thousands of dollars every day that that supply-chain issue costs you," he said. So when can DIY'ers and contractors expect the price shock to correct? Experts say not to get your hopes up anytime soon. It will likely take at least a and for prices to return to normal pre-pandemic levels Page Ode derin supply-chain constraints have persisted into 2021, Ja L 4 062 21 HETXWOSOLPASOIN MacBook Air
