Hardwood Industry Rising Costs

If you have been working on any home renovation, remodel, or new build, you may have noticed the rise in raw material costs. The hardwood industry is thought to be hardest hit by rising costs and scarcity of raw materials. The kiln dried hardwood market has been showing clear signs of insecurity for the past 8 months, with no sign of letting up.

Because of the increase in demand for white oak, combined with significant logging lags, the domestic hardwood white oak lumber market is in peril. Moreover, since the scarcity of white oak lumber has grown, the prices have gone up, and so have the lead times for the procurement of hardwood flooring.

Recent publications, NAHB and The Business Observer, explain how the increased costs stem from several factors: an increase in demand for hardwood from builders, fires on the West Coast of the US which have decimated raw material inventory, and COVID-19-related mill closures. All contribute to the current lumber shortage and subsequent rise in price and production times.