Why Builder Lumber Prices Remain Higher than Headlines Suggest
While the price of framing lumber has dropped roughly 50% over the past seven weeks according to Random Lengths, prices paid by builders have declined by a fraction of that amount. The disconnect — which has always existed — is inherent to the lumber supply chain.
This post outlines the reasons why when lumber market prices drop sharply there can be a long lag time before these full price reductions trickle down to builders and why higher prices reach builders with a much smaller lag time when the price of lumber increases.
The Lumber Supply Chain – The supply chain for dimensional lumber typically consists of five stages. CLICK HERE TO CONTINUE