Covid 19, Timber Prices and Us

COVID

We are working, working, working..... and sticking to the COVID rules. 

This is pretty easy on site with all that fresh (& wet) air and panels being 2.4m across!  The factory is enormous for the number of people working in it.  It is only our office which is low on numbers - but that doesn't stop us operating effectively.

During the lockdown we haven't been receiving visitors - but hopefully that will all change very soon.  Until it does, we can chat on the phone, send email missives and use one of the face to face systems should you wish.

We always welcome new enquiries and we are ready to help you in whichever way you think we can.  We love hearing about your exciting plans and taking a peak at your dream designs.  So do get in touch with us by phone or email.   We shall do our very best to help you and very much look forward to meeting you in due course.

Keep smiling, keep sane and keep safe

TIMBER PRICES

Prices within the construction industry generally are going up and up driven by shortages, changes in taxation of non-sustainable products and the simple fact that the World is building its way out of Covid - whilst many countries supplying materials are still struggling with the impact of Covid on their own lockdowns.  Quite a spiral.

We have changed our quotation terms to keep on top of the ever increasing prices.  We are still happy to accept forward orders, but if the build is more than 3 months from the date of the quotation, we shall revisit it and revise the price if we have to. 

To put things into perspective we know we have faced significant price increases over the past few months and the latest timber industry news is as follows:

• Market specialists advise 2021 will be worse for supplies than 2020 (which was awful!)  
• China has come out of the Covid crisis and is importing 8 million cubic metres of timber a month (more than 100,000 artic truck loads)
• USA were major influencers of prices in 2020 - and that continues with their house building up by 19% - and they will do the same as last year and simply pay a higher price than others to get their timber supplies.
• Japan have agreed to pay $100 per cubic metre more for their timber from Canada to ensure they get supplies.
• In India building regulations have changed requiring more environmentally friendly solutions - and with 1.3 billion people, their demand for timber will be unbelievable

Timber supplies are a major issue as demand is outstripping supply significantly.  Covid flare-ups in producing countries affect supply - which in normal circumstance wouldn't really matter, but there is no room for manoeuvre at the moment so the tiniest loss of timber supplies causes problems.

Then sawmills close down for July / August.  With supply pipelines being so empty, this will immediately translate to shortages in the UK

Costs wise:

Timber prices increased by 56% during 2020 - and since January 2021 have increased by a further 12%

OSB used for sheathing panels has increased in price by more than 25% in 2020 and the April increase will by another 30% .  

Glulam and other engineered timber products manufacturers, which use the same timber as we do - are pushing through record price increases.

There is no "return to normal" on the horizon for the UK timber users - supply is being outstripped by demand and prices will increase exponentially per the rules of economics.  

Depressing news for a small company like ours with limited storage space and discerning clients.  But we are on our game and our suppliers keep us up to date (as you can see).  So far, although the price increases make things a little difficult, we have managed to maintain the supplies we need and hope this to continue to be the case.

Regards
Ellie

LATEST 

Received by email today from one of our roofing suppliers (31 March 2021)

"Firstly, I would like to thank you for your recent orders and continued support.

Unfortunately, I have to inform you that there are further raw material price increases from our timber supplier of 28.5%, which is being forced upon us with immediate effect.
This is made up of 7.69% sea freight, 8.5% road haulage and 12.31% raw material.

This is to ensure continuity supply due to huge demands for timber products, especially battens.

In short, if we don’t pay more we wont have any battens.

Kind regards"