The wood products market is in chaos. Understand the key drivers behind it.

CHART: lumber and panel prices

The last 14 months in the wood products market have been unprecedented.

Home-builders are scrambling for construction materials as housing demand soars and prospective buyers compete in a historically undersupplied shelter market. Lumber distributors and dealers are struggling to keep inventory stocked with transportation markets in disarray and mill lead times stretched out weeks, if not months. Commodity managers are grappling with soaring industrial packaging costs as low-grade lumber shortages drive cost inflation that is pinching product margins.

In this report, we will examine the 6 key influences:

  1. A housing market on fire

  2. The DIY and renovation boom

  3. Soaring wood products demand

  4. Lagging industry supply

  5. A supply chain in disarray

  6. Long-term capacity constraints

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