To our valued customers:
I want to offer perspective on the unprecedented circumstances currently affecting the lumber and plywood markets nationwide, as we move into the heart of the season.
-When COVID first impacted the U.S., the lumber/plywood mills severely curtailed operations. This eliminated 50% of the production for 3 months. As demand picked back up, COVID restrictions further impacted the ability of the mills to ramp back up to normal levels.
-2020 demand not only picked back up, but increased due to stimulus monies, etc., so overall aggregate demand was greater than normal. Our projection is that 2021 demand levels will continue to rise.
-Housing starts are increasing, approaching pre “great recession” levels further impacting demand.
-Western lumber species SPF, Hem Fir, and Doug Fir have been severely impacted by Canadian provincial government restrictions on logging, resulting in billions less BFT being imported to the U.S. from Canada.
-Plywood and OSB shortages persist due to production problems that started last year, and have been exacerbated by shortages of plywood out of Brazil, which is a major supplier to the U.S. market.
-Freight has more than doubled in 2021. Trucking shortages are the reality in the lumber and building industry.
Global markets have entered a phase of commodity price increases for just about everything – some calling it a commodity super cycle. Lumber/plywood & many other commodities have seen huge price increases. Shortages of natural resources have developed across the world. Lumber is not exempt from this cycle. It is demanded worldwide and is increasingly competed for by other countries.
Flameproof Company is fortunate to have established relationships for both domestic and imported lumber/plywood. This has helped us to procure and produce consistently. While the prices continue to increase weekly, we are doing our best to offer both availability as well as pricing that lags current replacement costs for at least some period of time. We will continue to do everything in our power to ship product as quickly as possible. We suggest that precaution be taken to allow for added lead times, given the overall state of the market.
Flameproof Companies strongly encourage all of our customers to maintain contact with our offices and your sales representative in order to rid of issues regarding supply. We remain dedicated to doing our best to fill every order as promptly as possible and to communicate pricing in a transparent manner.
We thank each of you for your valued business and look forward to assisting you in any way possible.
Vince Mancini, C.E.O.
AND WOOD SPECIALTIES CORP.