Lowe's CEO sees no end to plywood price increases (FREEPER HELP NEEDED)

Forbes ^

[The G Man]

ATLANTA, March 30 (Reuters) - The chief executive of home improvement retailer Lowe's Cos. (nyse: LOW - news - people) said on Tuesday that he does not expect plywood prices, which are up more than 100 percent in the past year, to decrease.

"I don't think you'll see plywood prices come back down," Robert Tillman told a New York consumer conference in remarks carried over the Internet. "The supply is now pretty well managed. There's not an oversupply. There are fewer manufacturers."

Tillman said prices of other wood may fluctuate.

Lumber prices, specifically plywood and other structural panels used in home construction, have doubled or tripled year-earlier values since at least last autumn, and both Lowe's and home improvement industry leader Home Depot

[Moonman62]

My suppliers are telling me that alot of this is blowback from the tariffs that GWB put on Canadian lumber. Couple that with historically high demand and all-time low production capacity and you get a real mess.

But the feds are putting Martha Stewart in jail for a $40,000 trade, so I think we can forgive them for costing us hundreds of billions.

[Gabz]

Thanks....we're just planning on carpetting. it's for an attic closet and office.

[Gabz]

That makes 4 east coast states....VA, MD, DE, NC..... and Texas.

The tariff theory also makes sense as well.

[surely_you_jest]

Apparently it is not just lumber products.

I had a house built (finished May '03) last year, and when my insurance renewal came up my insurance company (USAA) sent me a listing of what their records reflected they were insuring, asking me to call if it was incorrect. Since they had the roof composition listed incorrectly, I gave them a call.

This led to a conversation wherein I was told that '03 was definitely the year to have had a house built. I asked why. I was told that because of the rebuilding of Iraq a number of basic building supplies are much more expensive than last year, to include drywall sheets, plywood and construction grade lumber.

[Hanging Chad]

thermoply good
plywood bad
can not buy ply-tanium
priced like ply-atinum

[Redcoat LI]

Not neccisssarily,it all depends on what you are going to have as a siding product.

A Brick facade can pretty much be sheathed with anything,on big projects we use Densshield,or Brownboard(exterior sheetrock),your brick ties get attatche to the studs and that's it.

Clapboards,Shingles and vinyl require a nailable surface,Horizontal siding should be nailed directly into the studs,it is nearly impossible to do that with shingles,and vinyl is attatched with roofing nails,and is usually nailed to the sheathing.

I've used many types of engineered lumber,P.S.L's L.S.L's,T.G.I's etc,don't be afraid of new technologies,they have to be rated before use by various state and federal agencies as well as private agencies and associations.

[The G Man]

"thermoply good"

Source?

[Hanging Chad]

Your builder !
(Don't you trust him?)

[Fierce Allegiance]

Don't be afraid of new technologies

Wasn't it the fire rated plywood that delaminated and all had to be replaced?

[Petronski]

Thanks for the info. By my very nature I distrust newfangled substitutes for tried-and-true standards.

[AngryJawa]

Or, if you prefer a conspiracy angle, it could possibly be simple collusion between two of the largest manufacturers.

I prefer this option. It gives me a reason to yell at someone. 8^)

[Eric in the Ozarks]

I've called on one of the OSB plants in Minnesota. They use a heck of a lot of glue to roll out flat sheets of "board." It seems to last as long as 4 ply plywood.

[decimon]

Interesting. Looks like Cob has the potential to address many problems while saving on costs.

Guess you've noticed that you've received no other replies. :-)

[Salgak]

Only indirectly. The housing market is booming, and is willing to pay premium prices. Combine that with restrictions on logging and lumber mills caused by the tree-huggers. . .and you get the current situation.

[The G Man]

I sent you a PM

[Quilla]

I agree. I've been in the construction industry for 16 years and have never seen a demand or backlog as we have for the past six months. (Frankly, the past 30 months have been phenomenal.) Interest rates, at an all time low, seem to be fueling the building boom. Yet, what has amazed me the most are the size homes being built - the majority are in excess of 3000 square feet.

Last year, when we saw prices rising, our area had been subjected to three months of rain. Logs weren't getting to the mills, demand was still there, and prices went sky high. I've vowed to buy up several truckloads of plywood and osb if and when prices drop again - and I believe they will.

[Redcoat LI]

I distrust newfangled substitutes for tried-and-true standards.

Nothing wrong with that,I've worked in places built in the 1740's,rock solid.

[metesky]

I am also a licensed MA CS. Thirty-five years in the bizz.

I hate all the new stuff. Wood. I like wood. That's what comes of being an old fart, I guess.

[Redcoat LI]

I'm unaware of the specific case you are talking about,but I'm sure it happened,Fire treated Plywood has this funky sort of powdery substance all over it,and is bone dry.

[RightWhale]

A news release last night: the construction industry here is facing a steel shortage. Some projects are delayed due to unavailability of structural steel products. Since we have a short construction season, those projects may be delayed a year. Who knows what will happen next year.