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In 2020 and 2021, lumber is taking a huge hit, and plywood costs are no exception.
In the early days of the pandemic, plywood costs were relatively normal -- rising at a normal rate. However, those prices have not stayed the same as the lockdown has progressed. As people are stuck at home, the price of almost all wood products in the works has risen sharply. The cost of lumber, OSB and plywood has started to climb at a ridiculous rate throughout 2020.
In early 2021, many people across the country are starting to be optimistic about the economy. Various industry professionals believe the lumber and plank market will start to pull back. This forecast is both reasonable and economically sound... but unfortunately, 2021 has other ideas.
By April 2021, plywood costs were already around 200% higher than normal. Not only was this jump unforeseen, it was unprecedented. With demand high for nearly every imaginable wood product, ongoing labor shortages and supply chain issues have exacerbated already-existing demand. The cost of plywood has skyrocketed like never before due to unmet demand.
Fortunately, these prices are not only unimaginable, but also unsustainable. For the first time in more than a year and a half, the cost of plywood fell gradually from summer to this fall. While this price drop has made life easier for everyone, the gradual inflation we're currently experiencing looms in the distance.
What's going on with plywood now?
One of the biggest factors driving up the cost of plywood is the overall availability of plywood. With demand so high across the country, the supply of plywood has plummeted - making it scarce and valuable.
Availability continues to increase as the cost of plywood continues to drop. We're not quite at pre-pandemic levels of plywood, but we're getting there. With more and more manufacturers getting their hands on plywood, the plank industry is finally starting to resemble what we've seen in the past.
But, like many things, we may have to prepare for a new normal. Inflation is increasing every day and is likely to start having a bigger impact on future wood products.
It is conceivable that we, who have been fighting against the virus for a long time in the future, will gradually accept the trend of rising prices of plywood and other woods. Although this situation may not seem good, it is not completely useless. At least for now, there will be newer products and technologies emerging one after another to replace and share a cake, which may also be another opportunity!
