April 28, 2021
The global demand for lumber has skyrocketed since the world went into lockdown. Consider this stat: Lumber prices have risen by 130 percent since before the COVID-19 pandemic, which makes for an estimated USD $24,000 difference in the cost of a newly constructed single-family home, per data from the National Association of Home Builders. As of press time, the average lumber price is USD $1,372 per 1,000 board feet.
Accordingly, lumber futures have increased an astounding 375 percent between April 2020 and April 2021, Forbes reports. That basically means investors have sunk almost four times as much money into the same exact amount of wood compared to a year ago, because the spike shows no signs of stopping.
“The price of physical lumber seems like it still has to rise a bit more because mills are at capacity and unable to meet current demand,” commodities expert Sal Gilbertie writes at Forbes. “Price rationing is really the only solution, and lumber prices have clearly begun the painful process of finding the highest price above which few people, be they professionals or DIYers, will pay.”
Due to rising costs and material shortages, all solid wood furniture at Picket&Rail will face a price hike to reflect the market in the near future. If you have any urgent purchases, we recommended shopping for our new ready stock pieces and place orders now so that you can get all your necessities together in time.
Read on to find out why lumber prices have been skyrocketing.
How did we get here? You can blame a few factors. For starters, construction of new homes has steadily risen for the last few years, even before the pandemic. As wealth increases around the world, lumber demand increases with it, because lumber is a totally fungible good that translates into virtually every economic situation worldwide.
Naturally, the pandemic has increased consumer demand for lumber for such projects. Ditto for restaurants, which also had to build an unprecedented amount of outdoor seating spaces to comply with COVID-19 regulations.
“Businesses are beginning to face the challenge of producing adequate supplies of goods and services—whether of lumber or of cold beer—to satiate that resurgent demand,” the New York Times reports. “After huge disruptions over the last year, the intricate networks by which major industries keep shelves full and services available have become frayed.”
This is a key part of the pandemic narrative around the world. Every industry relies on a supply chain, and many of these have been disrupted or even wrecked in the last year. That’s on top of regular shortages like steel and battery materials, unrelated to the pandemic, that occur in every industry from time to time. It’s a perfect storm of high demand and low infrastructural capacity.
(source: Popular Mechanics)
September 07, 2021
Singapore’s furniture retail sector was brought to its knees when the pandemic broke out last year in 2020. Agile businesses have adapted and recalibrated to the new normal, but it will take time to return to pre pandemic levels of efficiency. Although we can see the light at the end of the tunnel with Singapore’s high vaccination rates and endemic strategy leadership, the rest of the region is not faring so well.
May 29, 2021
Malaysia's lockdown has big impacts on the Singapore retail industry, which includes electronics, textiles, furniture, raw materials and more. Read on to find out what you can do as a consumer.
May 20, 2021
Furniture retail in Singapore is bearing the brunt of Covid-19 losses. Global cargo shortages due to closed borders and factories at half-capacity are making it harder for retailers to navigate this uncertain climate. What’s causing this seismic shift? Read on to find out more.