PHILADELPHIA (KYW Newsradio) — Many who work in the construction business will tell you that wood prices are higher than they’ve ever been.
So what’s going on?
Some small contractor businesses, including one owned by an independent carpenter who wished to remain anonymous, are struggling because of the sudden increased cost of lumber.
“It is ridiculous. A sheet of plywood was like $15 and something. Now it’s like $48," that carpenter and contractor said.
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Nino Mano has been a contractor for 50 years. He said he’s never seen such a sharp increase in the cost of materials as he has with the recent price of wood.
“A sheet of plywood, until not too long ago, was $5. Now you’re talking about close to $50. Come on, that’s ridiculous!“ he exclaimed.
Dr. Scott Deacle, associate professor at Ursinus College, said the obvious cause has been a surge in demand for houses over the past year.
"With the pandemic, a lot of people have decided to move or renovate their houses and all that creates a tremendous demand for lumber," he said.
"There actually isn’t any problem in terms of growing trees for wood and supplying wood. The problem is with the saw mills that process trees into the lumber we use to build our houses.”
He explained supply hasn’t been able to keep up, a problem which he said began in 2008.
“A lot of those lumber mills closed down during the sub-prime mortgage crisis, and at the beginning of the COVID-19 crisis they also cut back some as well," said Deacle.
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Mano, now retired in South Philadelphia, worries that those with resources will edge out the competition.
"We have these big shots building houses left and right, and it looks like the economy is going very well. It’s not, because the small guy like (me) isn't going to last another year.“
That’s why one contractor said he’s focusing on other areas of construction that don’t involve carpentry right now.
"I’m not (doing business) if people don’t want to pay for labor and pay for the materials, too," the contractor said.
Deacle says it could take a year or more for lumber prices to level off, and that demand could ease as mortgage interest rates rise.
When asking the unnamed contractor whether he was simply putting off carpentry jobs, he spoke with resignation.
"Yeah, right now, if I get a job, I'll hand it off to someone."