The National Lumber and Building Materials Dealer Association (NLBMDA) submitted a letter to U.S. Department of Commerce Secretary Gina Raimondo regarding the volatility of lumber prices and the effects of the volatility on the LBM and residential construction industries and the larger economy. The letter requests a meeting with Secretary Raimondo and her staff to discuss the impact volatile prices are having on LBM dealers and potential remedies that mitigate the situation.
Since April of 2020, the cost of lumber has nearly tripled and OSB prices have increased more than 250%, according to the NLBMDA. Estimates by the National Association of Home Builders (NAHB) suggest these increases have caused the cost of building an average new single-family home to rise by more than $24,000.
The letter calls on the Department of Commerce to return to the negotiating table with Canada to enact a new Softwood Lumber Agreement.
“With the pandemic’s effects on production and the ability to operate at capacity, the tariff [on most imported lumber from Canada] is even more severely impacting prices for consumers,” the letter says. “The administration can help businesses and the economy by getting a new SLA in place with Canada.”
The NLBMDA’s letter also calls for a more thorough examination of supply constraints as it relates to lumber production. The association said it will continue to stay in contact with the Biden administration regarding lumber prices.
Earlier in March, a 35-organization coalition headed by the NAHB sent a letter to Secretary Raimondo urging “immediate attention” be given to the price of lumber. The NAHB’s letter requested an examination of the lumber supply chain to help identify the causes of high prices and supply constraints.
