A recent article revealed that year-over-year, framing lumber prices have continued to increase. The hike began in 2013 as home construction increased, while the supply of framing lumber was limited as more suppliers were focusing to bring more capacity online.
While there was a decline in framing lumber prices in 2015, it is believed the decrease was due to a surge in multi-family housing starts, which consume less lumber than single-family homes; the decline was also contributed to weakness in China. Today, indications from NAHB (National Association of Home Builders) maintain that random length framing lumber prices are up approximately 8 percent in April of this year over a year ago, while CME (Chicago Mercantile Exchange) futures have increased approximately 20 percent year-over-year.
Single family home starts generally consume three times the wood product volume of multi-family starts, according to Citi analyst Anthony Pettinari who feels higher prices for lumber are here to stay. Pettinari believes the high prices can be attributed not only to the increase in single-family home starts, but also a return of Chinese buyers to the market following a dismal 2016; the anticipated resolution of the trade dispute in softwood lumber in Canada; and an early start to supply and fire season outages.
While framing lumber prices remain high, it seems that plastic lumber and WPC, or wood-plastic composite is continuing to become more popular for use in such applications as molding, trim, and decking; forecasted to approach the $6 billion mark by 2020. WPC and plastic materials are less costly, and are used in home construction for gazebos, play equipment, al fresco dining areas, outdoor kitchens, and more. These materials offer the appeal of tropical hardwoods, and a realistic appearance and texture.
Regardless of whether your industry produces framing lumber, WPC or plastic lumber, or any type of wood used in the construction industry, REA JET provides exceptional coding and marking solutions designed to stand up even under the harshest conditions. For all of your marking lumber needs, trust our team to deliver beyond your expectations!