On Mar 17, 11:08*am, Swingman wrote:
Thought the following may interest some of you wooddorkers.

Tom's with "The Detering Company", one of the big building material and
millworks suppliers in the Texas Gulf Coast area. Here is what he had to
say this morning on lumber and material prices:

quote

* * *Within the last four weeks there has been a large spike in lumber
costs. In past years we could contribute this jump in prices to the
increase in demand as spring approaches. Although business is picking
up, *this increase in activity is not the cause of the increased
material costs. The increase is due to an empty supply chain and the
weather. Consider the following factors:

* *1. The inventory glut, caused by the housing freefall, has been used up.
* * 2. A large number of domestic and offshore manufacturers have either
shut down or gone out of business. Unfortunately, a number of the
domestic mills will not reopen due to EPA concerns.
* * 3. Ocean freight rates have increased. Not only have rates gone up;
the shipping companies have lowered their ships speed for fuel economy
and to reduce their carbon footprint. This slower speed has increased
transit time from the Far East by 4-7 days.
* *4. Weather...Due to the severity of this winter's weather, the number
of logs removed from the forest has been greatly reduced. The effect of
the earthquke in Chile, a major producer of MDF, mouldings and plywood,
is already being felt. Domestic MDF suppliers have placed their material
on allocation and at present, material is being sold "priced at time of
shipment".

The cost increases have currently effected lumber, mouldings, plywood,
jambs and frame parts. I expect the increase to start appearing in
doors, windows, and other products which use wood fibre in the near future.

/quote

What else is new, eh?

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Last update: 10/22/08
KarlC@ (the obvious)

I believe Detering should have as good a knowledge of the economics of
the lumber industry as anyone. I bought a lot of materials from them
when I lived in Houston. They buy enough wood to maintain their own
RR siding. As an aside I remember the wonderful smell of baking bread
from the commercial bakery next to their property.
Joe G