2020 Lumber Market Impact on Wood PackagingAnna Lee
“Unprecedented” is readily becoming the word of the year for 2020. The COVID-19 pandemic has disrupted all aspects of our lives.
The lumber market is not exempt from these effects.
It all started with curtailment during the first stages of the pandemic here in the United States. Following that came the historic rise in home improvement spending. This surge quickly consumed large portions of what lumber was available.
Even today, six months into the new post-COVID-normal, lumber supply is not catching up with demand from both consumers and businesses. After official shutdown restrictions lifted, the mills and plants continue to see illness-related interruptions. This further distanced supply from demand.
What does that mean for wood packaging? To start, pricing will be directly impacted. Though dimensional lumber and panel material are produced and affected slightly differently, no fiber material or grade is exempt from the cost implications of a tight supply versus a high demand market. Lead times and supply may also be impacted, as it takes longer to secure and transport material from the mills to the plants.
As for when the market will correct itself, it is extremely hard to say. The “unprecedented” nature of this volatile lumber market has also added blinders to the typical seasonal rise and fall that we’re used to.
Packnet strives to support availability, quality, and fair pricing for all our products and services. Reach out to us today if you have questions or concerns about a current or future wood packaging product.