The Aftereffects of COVID-19 on material

[Maiden69]

Today I started pricing material to build my benches in the backyard. After a lot of thoughts, I decided that for the space that I have in my backyard I needed 2 benches, and possibly 2 pedestals which would be built at a later time since I don't have any tree that is displayable at the time. Being that wood working is one of my hobbies along with welding I decided that a blend in materials was going to be just what I wanted. While the price of stainless steel and aluminum has increased a little over average (it goes up a little every year), the price of Redwood and Red Cedar is almost double what I used to pay a few years ago. I could go to local lumbers and get a decent price, way better than bog box stores like Home Depot, but now the prices are almost even if not more than the chain stores.

To make my main bench will cost around $350 in materials, and that is for a 4'Hx8'W with 2 tops of 2'Dx8'L in Red cedar... I didn't even want to know how much more it was going to cost me in Redwood, which is one of my favorite woods. So scratch Cedar out of the possible options and insert pressure treated pine.

Has anyone noticed the same price gouging (I know not exactly that, but it really feels like it) to compensate for the lack of sales inside the industry? I am fairly new, and I started this journey during the first few months of the lock-down, so I can't tell if the prices for trees, pots, tools, etc... has increased as well.

 

[Cadillactaste]

My husband is a general contractor. Trust me...yeah, prices going up. And one main manufacturer of timber just closed up doors. To do wanting to do something else with their wood. Not sure what. So I anticipate it to go higher with even a harder supply and demand to be met. This was a heads up from the lumber yard in passing. Might as well build with composite when building decks. When you think of up keep of wood decks with staining...and zero maintenance. Then let's talk about lead time to get things in.

 

[Bagels]

I'm surprised there would be lack of sales, whenever I went to a Home Depot or Lowes since the pandemic, its been absolutely packed and when I walk around the neighborhood there was tons of work being done either by people going DIY or hiring local contractors. I've even seen bigger commercial projects being built. This is all anecdotal but that was one industry that's looked like it was booming.

Maybe its more increased demand but a shrinking supply without the long range shipping?

 

[hinmo24t]

and a big new tax hike being proposed as we speak!!

 

[TN_Jim]

freight has skyrocketed in the past year

 

[Mike Corazzi]

Lumber, like most commodities, is rising fast on expectations of inflation. Add to that the seasonality factor of using lumber for construction.

This is a chart of lumber for this year.

 

[sorce]

Conspire.

Can't pin Sorce without it!

Sorce

 

[Dan92119]

I'm surprised there would be lack of sales, whenever I went to a Home Depot or Lowes since the pandemic, its been absolutely packed and when I walk around the neighborhood there was tons of work being done either by people going DIY or hiring local contractors. I've even seen bigger commercial projects being built. This is all anecdotal but that was one industry that's looked like it was booming.

Maybe its more increased demand but a shrinking supply without the long range shipping?

Supply just isn’t there. Lots of manufacturers shut down for Covid. Until supply catches up to demand the prices will be high!

 

[Maiden69]

@Cadillactaste I thought about using composite for the benches, but I don't like the slick feeling of it for a bench that I will eventually be placing ceramic pots on it. And I like the fact that I can shape wood to any form I want, when I can't do the same with composite without damaging the "fake wood" finish.

@hinmo24t yeap...

@TN_Jim I have noticed, that's why I tend to use sellers that do "free shipping" even if the price is a little more than the others.

@Mike Corazzi - that puts it in perspective. The price increase this year has been staggering.

@Bagels - While Home Depot has been packed as you state, the majority of the people that I have seen in stores are buying petty stuff... paint, plants, DIY stuff for home, etc...

@Dan92119 - I think the supply is there for home builders and contractors in that sector, I just moved into a new subdivision and they are breaking ground close to me for 2 more. What has slowed down is the small business construction and the serious DIY workers. What makes me think that they are price gouging is the fact that there is a lot of new constructions in the area, which means that the need for the supply is active.

I think that the price of the material increased slightly, but not to the point of almost doubling.

 

[Cadillactaste]

@Cadillactaste I thought about using composite for the benches, but I don't like the slick feeling of it for a bench that I will eventually be placing ceramic pots on it. And I like the fact that I can shape wood to any form I want, when I can't do the same with composite without damaging the "fake wood" finish.



I think that the price of the material increased slightly, but not to the point of almost doubling.

I do get that it does get slippery when winter comes or is wet. It's not the same quality it once was. When we did ours years ago. The same color was all the way through, not the case now.

Material prices have TRIPPLED. With talk of it going up again. Then there was a time the lumberyard only permitted contractors material. Because they couldn't even get loads delivered...and knew it was ones livelihood. OSB was $10 last year now it's almost $40 a sheet. ($38 something a sheet.) I can't imagine the delays on building a home. My husband has slowed down with getting older and doesn't do full house packages now. We have to run a few job sites...which we never pulled off a job in the past until done. But delays in material has one bouncing around to jobs you can get material for as you wait on others to come in. Learning to order far in advance...but, there still curve balls.

 

[Forsoothe!]

Lumber doesn't grow on trees. It's cut down by someone, trucked to a mill by someone, sawed into boards by someone, put on a train by someone and shipped to another region to be distributed by truckers and yardmen to local big boxes. People who are forbidden to work don't produce goods and services and the pipeline dries up sooner or later. It will take some time to refill that pipe line which is mostly Canadian softwoods here in the USA. Have you heard how tight the government in Canada is keeping things? It'll take a year or two to get back to competitive prices which will never see what that was in the past.

 

[Cadillactaste]

Lumber doesn't grow on trees. It's cut down by someone, trucked to a mill by someone, sawed into boards by someone, put on a train by someone and shipped to another region to be distributed by truckers and yardmen to local big boxes. People who are forbidden to work don't produce goods and services and the pipeline dries up sooner or later. It will take some time to refill that pipe line which is mostly Canadian softwoods here in the USA. Have you heard how tight the government in Canada is keeping things? It'll take a year or two to get back to competitive prices which will never see what that was in the past.

Not on just lumber either. All materials. Windows and siding was shut down when a large manufacturing plant for plastic was damaged in Louisiana by the hurricane as well. It's currently the new norm. Learning to work around it and explaining to clients who don't understand before a contract gets signed. What they will be facing with delays.

 

[hinmo24t]

wish wed loosen red tape and regulations and get these channels moving again and putting people back to work. drill, pipeline, lumber, construction, (fire alarm fitouts ) etc. and lower taxes during a time of increased competition (via the virus and globalism, flatworld economics of the last 30ish years)
cant imagine raising taxes during this time. hold on to your butts (and wallets) folks

im in finance and executive assistant to one of owners for honeywell commercial fire alarms and we sell to electricians and GCs like @Cadillactaste (except GCs for commercial applications) and i have noticed some scary economics. collections and demands. thankfully we are pretty secure and ironically we do have security from regulation (state and federal fire alarm codes) but i will admit it has to be loosened up for people to survive soon. for example, you want to open a little pizza place in a small stripmall? well guess what, youre going to find another hidden cost before occupancy permit in the form of $6k - $8k FA system and radio box transmitter, required $$$, for your storefront that has 6 tables next to an egress. brutal out there, nice guys finish last and last i checked it was about one in two able body adults paying zero in fed taxes (takers, one form or another, while the middle and top pay for it all and have little reason to keep money here -not so much middle class- but the tax hikes will hit my boss and my dad if he was still working engineering, and i doubt my boss will look to expand or promote me when they take that hit)


gotta get in to QB now, have a great day everyone

 

[Maiden69]

Lumber doesn't grow on trees. It's cut down by someone, trucked to a mill by someone, sawed into boards by someone, put on a train by someone and shipped to another region to be distributed by truckers and yardmen to local big boxes. People who are forbidden to work don't produce goods and services and the pipeline dries up sooner or later. It will take some time to refill that pipe line which is mostly Canadian softwoods here in the USA. Have you heard how tight the government in Canada is keeping things? It'll take a year or two to get back to competitive prices which will never see what that was in the past.

I guess that goes by state... because in TX (at least in the San Antonio area) construction workers were deemed as essential workers. The company I used to work for closed for 2 weeks for office workers, but the working force continued. I would had think that lumber yards would continue their work as well, I have been in a few yards and they definitely don't work on top of each other.

Now that you mention Canada I think that could be one of the reasons why...

 

[BigBen]

Yup, the cost of most materials have gotten to be outrageous.
Being in the HVAC industry for just over 37 years now, event THAT equipment has gone up exponentially.
Fortunately we've been working since the start of these unprecedented times.
And now, unfortunately we see more than ever, companies practically "giving" installations away at very low margins to keep the crews working (which I do respect).
To top it off, the availability of certain equipment can get sketchy at times, due to everything else that's been going on, which slowed the supply chain of raw materials as well. It just snowballs...
Crazy-ass times!!!

Keep On Truckin',
"Uncle Ben"

 

[Cadillactaste]

I guess that goes by state... because in TX (at least in the San Antonio area) construction workers were deemed as essential workers. The company I used to work for closed for 2 weeks for office workers, but the working force continued. I would had think that lumber yards would continue their work as well, I have been in a few yards and they definitely don't work on top of each other.

Now that you mention Canada I think that could be one of the reasons why...

When the plants their material comes from is shut down. It's a challenge to get all work done. We were doing a house for one renting during the work. Do to their circumstances we were deemed essential. Yet...materials like kitchen cabinets were closed for production over covid. When working with a bank on pay draws. This was a wrench in the system they tried to work around .

*Essential workers like contractors can't work without materials. When plants are closed...be it from covid in the plant or seemed non-esential in their given state.

We were fortunate to have our place bundle our jobs for us when they seen they were about to take a hit. They took care of us...because we pay our bills and in return take care of them.

 

[hinmo24t]

Yup, the cost of most materials have gotten to be outrageous.
Being in the HVAC industry for just over 37 years now, event THAT equipment has gone up exponentially.
Fortunately we've been working since the start of these unprecedented times.
And now, unfortunately we see more than ever, companies practically "giving" installations away at very low margins to keep the crews working (which I do respect).
To top it off, the availability of certain equipment can get sketchy at times, due to everything else that's been going on, which slowed the supply chain of raw materials as well. It just snowballs...
Crazy-ass times!!!

Keep On Truckin,
"Uncle Ben"

the old, sell the system and secure the job for break even or a loss, and make it up in service work

 

[just.wing.it]

Its all part of the plan guys.....we're just along for the ride.
There's more than one way to destroy an economy.

 

[BigBen]

Its all part of the plan guys.....we're just along for the ride.
There's more than one way to destroy an economy.

EXACTLY!
We're on the same page, that's for sure.
Gotta be prepared for who knows what.

 

[Forsoothe!]

Yeah, economics. It's stunning how many "economist" talking heads, investment gurus, government statisticians & lawmakers don't see any inflation on their horizon in the face of spending trillions and trillions of dollars printed on whole cloth. Economics is either a science or is not a science. If the formulae these people are working with don't show wild inflation connected to wild spending, then one of us is stupid.

Right now the national debt is financed by 1% and lower bond prices. When that moves up to 7 or 8% in the next two years, the Piper will be paid.