How to Mitigate Impacts of the NW Log Price Surge

What do forest fires, mountain pine beetles, the U.S. housing market, and China all have in common? Each one has pushed price of northwest timber ever-closer to record levels.

Wood logs - blog

It’s a classic story of supply and demand. In Canada and on the U.S. west coast, pine beetles and last year’s wildfires devastated timberlands, while mills in Florida and Georgia were paralyzed by Hurricane Irma resulting in a limited timber supply. Transportation issues, including a shortage of trucks and railcars, further limited buyer access to available timber.

All the while, the world’s appetite for softwood timber continues to grow. Domestic lumber consumption remains high due to new home construction, and at the same time demand from China and other Asian countries remains strong.

As a result, prices for Douglas fir rose to $700/Manufactured Board Feet (MBF) last year and shows no signs of dropping. A 2018 article from Forest2Market notes, “High log prices are great for the region, but only if the market will bear the same high costs through the entire supply chain and to market. When raw material costs become so expensive that manufacturers can no longer remain profitable, the market will be forced to adapt.”

With that in mind, here are two ways to mitigate the impact of the recent softwood price surge:

Work with a Vertically-Integrated Partner

Here at Timber Products Company, we offer wood product solutions. By working directly with customers, we help them save money and get a product engineered to their exact specifications.

  • Depending on the facility, we provide state-of-the-art manufacturing and offer lay-ups, sanding, custom cuts, custom components, laminating and finishing.
  • Our partner TP Trucking has more than 150 owned or owner-operated trucks. TP Trucking is always on-time and operated by safe, professional drivers.

Don’t Focus Only on Price

As any good salesperson knows, the price is only one factor in a buyer’s decision. A “good deal” can quickly turn into a massive liability when a product does not arrive on time or if it fails to meet the client’s expectations.

We have built a reputation for high-quality hardwood and softwood plywood, hardwood and softwood veneers, hardwood lumber, particle board, and a wide variety of decorative overlays to suit different needs and design trends. As an added value, all our products are created with the environment in mind. we are committed to environmental sustainability, and we can prove it.

We also engineer softwood plywood panels to meet the unique needs of each customer - saving time and money. Our manufacturing facilities can produce panels up to five feet wide, ten feet long and 1-15/32" thick with optional plug and touch sanding, full sanding or tongue-and-groove.

Let us know how we can help you find a quality product at a price that fits your budget. Give us a call at 1-800-557-5131 or connect with a Timber Products wood and panel expert via our website. Smaller orders can be handled by one of our trusted wholesale distributors. Locate an authorized Timber Products Company distributor near you.

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