3 Factors Contributing to the Lumber Crisis

Why are my lumber costs so high? Why are my pallets not available? By this time we all know the answer. We are experiencing an imbalance between the high demand and the global supply of wood. 

In addition to the issues of supply and demand, there are several factors contributing to rising costs and lack of availability. 

• Fuel
• Weather
• Economy

Fuel prices
Prices for gasoline have been dipping recently. However, according to a recent AAA fuel report, the national average price of unleaded gas is still up 40 cents per gallon from the beginning of the year.

Weather
Due to an unusually rough winter and spring, many loggers have not been able to get into the forests to cut timber.  The weather is always a concern, but the spring of 2014 did not produce enough dry periods for loggers to run equipment.  

Economy
There are fewer logging companies cutting timber than ten years ago. To further add stress to the industry, new markets are paying all-time high prices for wood fiber. Logging companies are cutting all they can but there is simply not enough workforce. Fixing this problem may be a long wait. It takes longer for a logging crew to get started up in business than for an existing one to close down.

What else do you think is affecting the lumber crisis? Share your thoughts with us by commenting below.

Post by: Jonathan Haynes, Sales Representative