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The U.S. consumes roughly 50 billion board feet of wood a yr, most of that for new residential development. About 30% of that is imported, the vast majority from Canada, пиломатериалы тула тульская область mentioned Jesse Wade, an economist at the Nationwide Assn. of Residence Builders. Europe’s share of lumber imports has elevated in recent times, however Trump has talked about making use of 10% to 20% tariffs on goods from all international locations. The development trade also imports cement from Canada and Mexico for concrete used in homebuilding. Replacing 12,000 structures would require an estimated 10,000 to 20,000 truckloads of lumber, Goodman stated. A forty eight-foot flatbed truck can haul 45,500 to fifty two,000 pounds of lumber, based on Union Pacific. The variety of pounds per 1,000 board ft varies by tree species, however the global Trade Community has figures starting from 2,250 to 5,350 pounds per 1,000 board toes of freshly reduce lumber. The same forces that result in massive lags relative to mill costs on the way in which down will help explain why builders’ lumber prices could enhance contemporaneously with mill costs. Wholesalers are typically "trigger happy" when costs skyrocket. As the price of their inventory is low relative to money costs throughout these durations, they'll quote at or near present market costs. The atmosphere is one through which wholesalers are assured to purchase low and promote high.
This may lead to a slowdown in housing begins and renovations, particularly in regions the place affordability is already stretched. Increased lumber prices may encourage a shift toward different building materials like steel framing and engineered composites. How A lot of Our Lumber Comes from California? California’s Contribution to U.S. California produces roughly 10% of the U.S. Its forests, together with the Sierra Nevada and Coastal Ranges, provide softwood species similar to Douglas fir, ponderosa pine, and redwood—highly valued for development and specialty functions. The state’s susceptibility to wildfires poses a serious threat to its lumber assets. In response to estimates, up to 60% of California’s commercially viable forestlands are situated in areas at excessive risk of wildfires.
These greater costs are handed on to builders so as to maintain positive operating margins. This is why lumber retailers are much less likely than wholesalers to realize outsized income when costs are rising. The evaluation above was authored by Jesse Wade, NAHB director of tax and commerce policy analysis. Mr. Wade has expertise in tracking and analyzing quick- and long-term tendencies in commodities pricing, notably for framing lumber, steel, gypsum and other common building material merchandise utilized in residential development.