A year ago, expectations for our industry were all in positive territory. It was even predicted that demand for wood products would be better than it had been for 3 years. There was a good amount of pent-up demand for new housing, commercial projects were going to come back to life and the display and event builders were going to have work for all the shows and events that were cancelled due to COVID-19. It was welcomed news by everyone in this industry.
There were rumblings that there might be shortages and price increases, but we had seen those before; it was nothing new. We did some extra projecting and brought in more inventory just in case.
As it turned out, the expected demand for product came true and the rumblings of shortages and pricing turned out to be a storm that outpaced the demand aspects. By February 2021 sawmills were taking orders for shipment 45 days or longer and they wouldn’t confirm or price them until they had material ready to ship.
This letter is entitled “SILVER-LINING” so let’s get around to that. We think the worst is over! Construction lumber and plywood has retreated, giving back a lot of the 400% increases since last October. And availability has improved dramatically. It has stabilized and that certainly has had a calming influence.
Hardwood plywood and lumber never hit the levels that construction items did, but the mills are getting through their back log of orders and as that happens, we can expect better availability and lower prices.
Demand for materials is staying at good levels and for the next few months it is expected to remain that way.
Our inventory level is good across the products that we sell and is improving as the fourth quarter starts. We have daily deliveries to Southern California and our will call is open every day beginning at 7 am. The sales staff is here for your questions and orders and the service staff is committed to getting your orders completed correctly and efficiently.
ALL OF US AT WEBER PLYWOOD ARE ENTHUSIASTIC TO SEE WHAT’S AHEAD FOR THE REST OF THE YEAR AND THEN START PLANNING FOR 2022!
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