Lumber Prices 2022 : Whats’ the Reality?

Lumber Prices

Overview : Lumber Prices

Over the last two years, we have seen a constantly changing economic dynamics and distressed markets. The disrupted equilibrium of demand and supply has impacted multiple industries. The lumber industry was visibly affected by skyrocketing prices pinning holes in customers’ pockets.

We are hoping to slowly pace back to our normalcy. However, as history suggests, deep economic crises often leave trailing scars that take time to recover.

The vacuum created between demand and supply can take another couple of months to fill. Recent headlines suggesting the drop-in prices seem to be far from reality, and here is why?

The situation is still volatile, and there are already concerns over an upcoming global economic recession.

Inflation

We are at the highest inflation point in the last three decades.

The current inflation surpasses the highest mark in recent history and is over 7.7% for Canada and 8.6% for the USA. Let’s understand what inflation can do to our economy?

HOW INFLATION EFFECTS :

The current inflation surpasses the highest mark in recent history and is over 7.7% for Canada and 8.6% for the USA. Let’s understand what inflation can do to our economy?

Inflation

Transportation Costs

• As a result of the shortage, Gas charges have gone significantly up, The increased fuel prices result from inflation and multiple sanctions put on Russia for its invasion of Ukraine. 

Currently, the average gas price in Canada is around $2.04/liter. It was around $1.29/liter during the same time, last year.

As a matter of fact, Gasoline Prices in Canada averaged 0.96 USD/Liter from 1992 until 2022,

• Fuel demand continues to increase as people venture outdoors to enjoy warm summer. Thus, the prices are predicted to go up because of the short gas supply. 

• There are delays and backlogs with Rail, Marine, and Trucks, forcing lumber and pulp companies to slow down production and exports.

Canada Lumber prices

Ultimately, the whole supply chain continues to suffer.

Disbalanced Demand & Supply – After Effects

Sawmills are still unable to keep up with the demand. The industry is troubled by labor shortages. If the increasing housing start data is compared, sawmills’ output is significantly behind.

Other issues not letting the prices stabilize include, ongoing supply chain disruptions and tariffs on Canadian lumber imports.

In our earlier newsletters, we outlined essential aspects of the economic outlook and soaring prices, which you can also read here. 

The ongoing media headlines suggest a reference for soft lumber pricing, which seems to stabilize temporarily, but hard lumber corrected pricing is like a distant dream.

There is still a huge shortage going for specialty hardwood species such as White Oak, Walnut Oak, American Poplar, and more.

 

BRENLO'S Response

We are taking a proactive approach and keeping up with the following measures to make sure our customers are happy.

• We are working hard in preparing ourselves to absorb maximum disruptions across the supply chain, allowing us to pass on only the minimal effects to our clients.
• Despite the ongoing challenges with the supply chain, we are closely working with our suppliers to retain a strong inventory position and ensure our product quality is maintained at each level.
• With our manufacturing capabilities, we are continuing to push back and work on bringing down the lead times and supporting our customers.
We would love to hear back from you.

Please leave your thoughts and comments in the comment section below.

Economic Outlook: Hardwood Plywood Market

Plywood forecast news
Plywood forecast news

INDUSTRY UPDATES - PLYWOOD Supply, Price and Impact

What are the primary channels of Plywood?

A growing market appetite from the DIYers and home renovators segment has contributed to disrupting the demand-supply equilibrium. To understand the overall situation, we need to be aware of the global supply chain, limits on labor, rising raw material costs, limited supply of said materials, unprecedented congestion at the ports; all under the umbrella of inflation.

Let us begin by understanding the role of housing, that impacted the primary channels of Plywood :

  • Distribution
  • OEMs (Original Equipment Manufacturers)
  • Retail

All these primary channels reacted differently to economic shutdowns due to Covid-19.

  • The demand for Plywood quickly surged because of the growing DIYers segment.
  • Resulted Situation – Demand continued to rise while production was still shut down and impacted.
  • Subsequently, because of quick stock-outs, people started looking for priced alternatives.

The following image shows an increase in the number of DIYers over the past year.

Core Reason : Massive Shutdown in production but an unexpected recovery of residential construction.

Who suffered the most : OEMs and Distributors

This following graph depicts an incessant rise in single-unit housing. This is also an opportunity for the industry players.

Plywood Market

Growth Projection of Hardwood Plywood

The projection says 10+% YoY growth for domestic decorative hardwood plywood in 2021, with moderate and slight growth in 2022 and 2023, respectively.

(Source : https://www.columbiaforestproducts.com/2021/03/01/role-housing-hardwood-plywood-forecasting/)

  • Not only the COVID-19 pandemic has  impacted the markets but also, the massive changes happening in regards to imports of competitive products—hardwood and softwood plywood.
  • These product categories have also been impacted by the “Trade War” with China.
  • The projections are somewhat similar to MDF. Read here.

The following table compares the total volume of hardwood and softwood plywood imports decline from China with the total row volume change percentage.

2021-22 to show strong double-digit growth in single-unit housing units, driven by very low inventories, low borrowing rates, an exodus from large urban areas to suburban communities, and several other variables. 

Brenlo's Take - What we are doing ?

We are in this together.

  • We are trying to match our pace in this disruptive supply and demand equilibrium. 
  • With our initiatives, we are keeping our customers informed about the potential price rise because of unexpected demand surge.
  • We are building our stock inventories to cut down lead times and support projects.
  • We are constantly increasing our manufacturing capabilities by hiring new skilled staff.

Check out our updated catalogue here.

Follow us on Instagram for latest products and industry updates

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

Breathtaking French Doors to Beautify your Living Spaces

High Quality French Doors
High Quality French Doors

Breathtaking French Doors to Beautify Your Living Spaces

French doors are primarily constructed using glass and they appear more like wall-size windows, rather than a regular doors. These doors offer a major advantage of allowing light to flow more easily between spaces.

French doors have recently regained their popularity and are a major contributor to home improvement projects. These doors can be included in the original architectural design of a home or can be replaced with the present doors. They are meant to beautify living spaces by connecting them visually to adjoining interior or outdoor zones.

Type of French Doors

Exterior French doors

French doors are known for creating those welcoming first impressions.

French Doors Brenlo
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Interior French Doors

These doors can be used as a partition between spaces to create that visually attractive interior design.

Credit : Pinterest

Pocket French Doors

Pocket French doors save space by sliding inward instead of swinging outward.

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Multifold Doors

These doors create a beautiful frame appearance when folded and become a stately wall of light when closed.

Brenlo French Doors
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Sliding Doors

Sliding French doors are mainly used in balconies to save on space and create a magnificent look.

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Door manufacturing facilities such as Brenlo Ltd can custom design a door that you are looking for. To increase the durability of exterior French doors, they use exterior cladding using metal or fiberglass skin to the exterior doors. These doors are sleek, elegant and can be tailor-made to suit any existing home décor.

French Doors are also used as a decorative substitute to solid wood doors which also makes them a great choice for the back patio.

One can choose glass options as per their privacy needs and have doors custom-made. If you want to make sure that your door matches environmental compliance and is only manufactured by a certified company don’t forget to look for the FSC logo.

Benefits of French Doors

1. Quick access to the patio or outdoor spaces

These doors connect interiors and exteriors, creating a seamless spacious look. Easy access to outside areas provide an extension to natural surroundings imbibing positive moods.

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2.  Energy Efficient

These doors allow an incredible amount of natural light inside a living space-saving on energy. These doors not only bring natural light and warmth into your home but also transforms it into a completely new and rejuvenating ambience.

Brenlo Doors
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3. Aesthetic Look

French doors come with decorative aesthetic features that can beautify any living area. They create a sense of openness when used as room partitions as they can make your home look and feel larger.

French Doors
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4. Smart Investment

These doors at home can dramatically amplify the look subsequently increasing the potential value of your home.

Brenlo French Doors
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5. Enjoy cold outdoors from the comfort of your warm Indoors

These doors help you unlock the possibility of relishing winter views without venturing outside.

Credit :Pinterest

6. Noise Block

Whether used as an interior partition or in exteriors, French doors allow you to cut down on unwanted noise without disrupting your views.

Inspirational Gallery : French Doors

Brenlo Ltd has been manufacturing and supplying custom doors and mouldings for more than 30 years. Check out the speciality doors options with a glass type selection.

Check out their project gallery and view the full catalogue to pick your options.

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

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