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| Lumber Prices on the Rise |
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2010/5/14
Lumber yards are seeing a spike in material costs. Prices increase as much as $5.00 more a sheet.
"We knew it was coming, not as big of a spike as we have seen, but we knew prices would go up in spring again," said Muus Lumber and Hardware Assistant Manager Pat Bailey.
The spring season is a typical time of the year for material prices to go up, but a climb of 32 percent has people talking.
"That will maintain through the early summer to the fall. In the winter once production gets caught up then you will see a drop," said Bailey.
Muus Lumber and Hardware said as lumber and buying companies call for lumber prices it indicates a demand for product, which in turn is driving the prices up at saw mills. But the biggest effect it has, is on homeowners.
"Once you square foot it out, it`s maybe going to raise the price of your house maybe $1,000," said Bailey.
There is more than one factor though that comes into play in determining price.
"Production, logistics, manpower and so on,” said Bailey.
These are all factors that take part in the rising cost of building materials. Muus said it`s basically a trickle down effect we are seeing from a down economy. Sawmills cut production and lay workers off in the winter months. As springtime rolls around, mills will not call workers back until they know they have the business.
“Ultimately it affects the homeowners; it drives the price per square foot of their project up,” said Bailey.
As for the way Muus Lumber and Hardware runs their business, their margin of product is staying the same.
“Were not making anymore money with the price increase on the material, we just maintain our profit margin so we can run our business and keep our doors open," said Bailey.
The economy is making a slow rebound Muus said, and surely we will eventually see prices decrease. |
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