Brace For Increase In Construction Costs - CTL Warns
CTL Home Center’s Managing Director, Michael Thomas is warning of increased construction costs due to supply shortages and new tariffs on lumber.
Mr. Thomas shared that through his suppliers that lumber prices have escalated in the US, Latin America and the Caribbean, due to the diminished supply caused by the pandemic and the recent additional 20 percent importation tariffs imposed by the United States on Canadian supplies.
Mr. Thomas also pointed out that production in South America, which produces construction plywood has also reduced significantly, due to the partial opening or complete shutdown of mills.
This he deduced will increase the cost of construction plywood as well.
“I believe that it is my civic duty to inform our valued customers about this unfortunate increase in lumber prices caused by the COVID-19 pandemic that will result in increased construction cost for our home builders” Mr. Thomas asserted.
Mr. Thomas added that “the industry is indicating that prices are going to drop but it is not expected to return to pre-COVID-19 levels anytime soon.”
CTL Home Center is reassuring customers that our prices will remain the same until it is time to replenish our inventory and we will do all we can to make lumber prices as affordable as possible.
The US National Association of Home Builders (NAHB) has reported a significant increase in lumber prices due to the COVID-19 pandemic. The NAHB reported that due to “insufficient domestic production and tariffs on Canadian sources, the price of lumber has staged a staggering increase in recent months, rising roughly 80% since mid-April to an average price above $600 per thousand board feet.
This increase will add thousands of dollars to the cost of a typical newly-built home, thereby constraining housing supply, exacerbating affordability woes limiting housing’s economic impact.