Lumber companies seeing the effects of COVID-19
DOTHAN, Ala. (WTVY) - Shortages on various items has been seen in companies throughout the United States. One shortage we haven’t heard much about is--lumber.
This is caused by, suppliers having to work under new circumstances.
“We’ve got mills that are shut down or running at half capacity so they are not able to keep up with the demand we’ve got products sitting at the ports longer than it ever has before due to stricter regulations due to COVID so they not able to release that stuff as quickly so it is just creating a lot more demand then they are able to keep up with,” said Brantley Brockett - Vice president of Southern Lumber Supply.
Not only is there an increase in demand--there is also a price increase. With interest rates on building homes is at an all time low, builders are overlooking the price spike causing lumber businesses to continue to see high demand.
“Logistically it has made it a little bit more difficult but from a sales side we’re as busy as we have ever been,” said Brockett.
With more clients and less product the only relief businesses see in the near future is--
“Is for that demand to slow now fortunately construction typically slows down up north in the fall so that should have a significant impact on pricing once that slows supplies should be able to keep up or pick back up and we should see a decrease in some of the prices,” said Brockett.
Another reason behind the shortage is the increase in home improvements and DIY projects.
Copyright 2020 WTVY. All rights reserved.