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

[Redcoat LI]

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

You have my sympathy,I ended up working with Structural Steel and metal studs,Wood is still the best.

[taxed2death]

You can make up the difference in high cost plywood, by having your home built with steel frame construction. Your homeowners insurance will cost less too.

[RSmithOpt]

Have worked in construction from time to time -- just to learn some things. Guess I'm an old fart too. Quarter sawn yellow pine, oak, hickory, etc. for casing, trim, cabinets, windows, flooring etc., (real wood) with light stain, good sealant, and time give a great look in any house. The wood, moldings, etc., also speak of a time of craftsmanship (when it mattered) from those that put it together. Over time, with proper care, you can't be the color and the patina real wood takes on. Looks great with stone, tile, and metal. Anyway, my 2 cents worth.

[wolicy_ponk]

Hey G man,

I am a contractor here in TN,

I would not even consider using this 1/8" thick (cardboard) product as sheathing. period.
That's just my opinion.

Here's a story about it.

Wall sheathing creates headaches for builder, homeowners

[Arthalion]

At least it isn't cardboard. I ripped out some of the sheetrock in my garage last weekend to run some pipes and wires, and discovered that my house (built in 1996) is sheathed in CARDBOARD (you know...just like boxes). The construction technique was apparently cardboard+moisture barrier+chickenwire+stucco. It's hard to believe that I paid $240,000 for this thing.

[Fury]

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.

Just bought several $K worth of steel panels and feeders for use in a livestock facility. The company I bought it from stated that prices are most certainly going up in the summer, as steel has/is going up quite a bit. Add to that fuel costs for transporting, and you have some prices increases on the way.

[Doctor Stochastic]

The results of the tariffs are as one would predict.

[metesky]

Nice link. Thanks.

I agree with your conclusions.

[SoCal Pubbie]

I think that part about earthquakes was pretty glossed over. I would have to think that Cob structures would be very unsuited for earthquake zones and would crumble like mud homes in Turkey during even a moderate So Cal shaker.

[adam_az]

"I've always been fascinated with COB and Rammed Earth homes. I think I like the Rammed Earth better. They mix the earth with cement and compacted it using air-powered tampers. The stuff is thick and strong, kind of like a bunker. I like that idea."

I live in a 75 year old adobe block and stucco house in Arizona... As long as the stucco (and oak floorboards) are maintained, this house will still be habitable in 500 years.

My opinion is that if you are going to build a house... build for your local climate, and use materials that will last.

[The G Man]

Thanks. Appreciate your opinion, but the article doesn't support the conclusion it draws. It just talks about this one homeowner who didn't like the idea of it being used in his house. Period. No problems pointed out, neither generally or specifically.

[adam_az]

"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."

Darn the worst economy since the Great Depression ;)

[stainlessbanner]

Some people here are building styrofoam houses, too, then putting rock/brick/stucco veneer on them too

The ones I have seen use solid concrete with metal rebar and styrofoam insulation on the outside. They are some of the strongest, best insulated buildings I have seen.

[stainlessbanner]

Plywood Prices Approach All-Time High

1. Iraq Rebuild
2. Tarriffs
3. Weather (Fires, Hurricanes)
4. Low Int. Rates
5. Shortage of Workers - some stories on FR re: hiring illegals, lawsuits, and lumber plant closings.

[wingnutx]

There are quite a few adobe home here in Phoenix, from as late as the 30's. They are great in this climate. Great insulation, literally bulletproof, and will last at least as long as brick.

[Quilla]

Yea, but you've got to consider the source, that's the AP's take on it and they're prone to twist the truth a bit.

I subscribe to Random Lengths, a weekly report on forest product markets. It provides me with current price information as well as future market indicators. Although I keep every price composite received, I generally toss the commentary that accompanies the weekly. In reading their April 2, 2004 issue, there is not one mention of Iraq or tarriffs fueling lumber price increases. (I agree they have had some, but not a very large effect.) They are citing an explosion in demand, lumber prices having hit rock bottom in late 2002 and early 2003, wet conditions in the South for more than two years, and expectations for strong Spring consumption.

Over the years, I've noticed that whenever interest rates dropped, lumber prices would increase. That didn't happen when the fed consistantly lowered rates. I'm of the opinion that it was just a matter of time before the lumber market adjusted itself.

[Bogey78O]

I used a similar method to break into my parent's house as it was under construction.

[stainlessbanner]

I agree - I'm not saying all those factors are true; that's just the buzz on the street.

[wolicy_ponk]

I understand there are a few places down in mississippi and arkansas which sell cheaper finger-jointed stud material made from joining short pieces together that will go perfectly with your really thin cardboard sheathing.

[Darnright]

>Have the enviros created a US shortage of lumber?

Wood products are pouring into the US from China.