Pro Update on Lumber Pricing & Demand

As a professional contractor, staying on top of the lumber industry is a crucial part of keeping your business running smoothly (and turning a profit). HPM Director of Purchasing and Supply Chain Adrian Murphy shares a few key insights from his close analysis of the landscape to help pros stay in the know.

Looking at the lumber market, Adrian points to several challenges that have spurred demand and pricing swells this year—last year’s record fire season leading to log shortages in the Pacific Northwest and Canada, transportation shortages, rising fuel costs and labor shortages at sawmills. Usually the mills can react to higher demand by producing and shipping more product but that has not materialized so far in 2018 and it may take all of this year for that to change.   

For the short-term pricing outlook, Adrian expects the high rate of $600 to $650 per thousand board feet for premium 2&Better Grade Douglas Fir to stick throughout the summer months, and possibly through the end of the year. But there’s light at the end of the tunnel: He invites you to remain optimistic, since prices likely won’t be fixed for the long-term, given the dynamic nature of lumber supply.

In response to rapidly changing lumber prices, HPM has changed our quote expirations from one month to seven days to help give contractors an edge. Adds Adrian, “We continue to encourage customers to have their large project quote pricing refreshed every week to protect yourself and ensure you’re as competitive as possible.”