Hotel Wood Framing Costs Decline
Last November, I reported a price increase in the U.S. softwood lumber market. When costs historically crossed the $600/1000ft board price earlier this year, hoteliers and developers grew increasingly concerned.
Since June, however, the market has experienced a decline (see the graph below).
In the wake of these turning tides, I present the following points for hoteliers to consider:
Why the Market Increase?
- In 2017, the U.S. announced an average 20% tariff (anti-dumping and anti-subsidy) on lumber imports from Canada (28% in 2017).
- Wildfires in the softwood lumber goldmine British Columbia further broadened the demand-supply gap.
Why the Market Decrease?
- Due to decreased demand and excess inventories, sawmills reduced prices this past labor day.
- Some experts suggest that the prices could continue to fall for the next few years **
The changing trends in the framing lumber market have become a concern among hoteliers. It is more important than ever to optimize resources and reduce overall costs. Get in touch with me to explore new possibilities for your next project.
Source: * https://madisonsreport.com/2018/08/08/softwood-lumber-market-settles-down-prices-drop-further/ ** https://www.marketwatch.com/story/record-prices-for-lumber-arent-built-to-last-2018-05-1