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Lumber prices spiking, COVID impact? July 2020 builder update

Jeffrey R. Grenz, General Contractor
3 years ago
last modified: 3 years ago

Had a Zoom discussion initiated by our local NAHB chapter (Northern California) with about 30 local builders of all types, national, local, custom, etc.

  • Imported products w some delays due to slower production, shipping delays.
  • Ordering earlier, substituting where necessary.
  • Some builders can't fulfill all options.
  • Inspection, plan check delays (working remotely out of office)

My experience in addition to above:

  • Delays w some consultants working out of offices for civil design, engineering, soils reports
  • One of our public utilities is struggling with paperwork schedule - 30 days more than normal
  • Lumber futures are spiking at nearly double the low of this year. This is not retail price.
  • Lumber costs to us have bumped monthly this year, but I hope it settles and plateaus in the Fall.
  • unemployment claims from workers who failed to report to work in 2019 (get that bonus!!)
  • Delayed/zeroed or partial shipments of hardware, fixtures, etc.
  • That "Prime" delivery is no longer 1 day mostly - they're swamped.
  • Big Box stores are always full.
  • Lumber deliveries, especially from DIY catering yards are 7-10 days out.
  • We sometimes drag a "schooling from home" teenager along, as do others.

I'm wondering about windows and other items as I place some orders. Likely to get the typical optimistic "6 weeks" answer from my supplier.

PLEASE ADD YOUR SPECIFIC PRODUCT & SUBCONTRACTOR TYPE IMPACT.

Here's Lumber. My understanding is Canadian production is bottlenecked below capacity while
new home sales in our region are 5.4% YTD above 2019 having recovered after March.



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