As the strong winds and never ending rain tore through our cities, thousands of people were left homeless. People saw their houses, their family possessions and everything that they held dear float away as six Atlantic hurricanes tormented the United States in 2017. Out of fear, these innocent civilians flocked to find lumber they could use to board up their homes in preparation of these heavily talked about hurricanes. This lumber would be used to cover windows and doors, in order to add some sort of barrier to protect against the harsh conditions ahead. People were buying out of fear, but the demand was growing.
After the effects of the hurricanes dies down, the rebuilding process takes time. In Florida specifically, the landscape is covered by forests, about 17.3 million acres to be exact. Forests almost cover the entire landscape of these cities and they were wiped clean after the devastating natural disasters. The damage still cannot be measured until the flood waters recede, which takes time. After every massive natural disaster, the community comes together and the rebuilding process begins. The demand for lumber, specifically hardwood will steadily increase in an effort to rebuild the homes. But with the destruction of the forests, there will be supply issues in the near future. This, and many other factors will cause the price of hardwood lumber to increase.
Going forward, with housing issues, interest-rates, uncertainty and a shortage of workers, prices of lumber is expected to see a steady increase over the next few months. With the current trade dispute with the United States and Canada over softwood-lumber, these prices were already higher than normal. And now with the influx of natural disasters on the scale that the United States incurred, the prices of lumber supplies will continue to go up. Lumber analyst and president of Westline Capital Strategies, Greg Kuta, predicts that we may see prices of about $325-$425 for lumber supplies in the coming months. Kuta goes on to state that lumber is a “highly volatile commodity” meaning that the prices will tend to fluctuate. But with all of these factors bogging down the lumber industry, it will be hard not to raise the prices.
Like always McIntosh Box and Pallet is making sure that we continue to provide our customers with the highest quality products at the most reasonable prices possible. As the nation goes through a rebuilding process, let us send our thoughts and prayers to those who are in need. We as a community will rise out of this tragedy and come out stronger. Prices may increase, but with the efforts that many are putting into fixing these issues, the prices will come down and once again we will be able to patch ourselves up. We have made it through a lot, we cannot let this weigh us down. United we stand! Until next time readers.