My understanding of this rise in lumber pricing has very little to do with the availability of raw lumber. During Covid shutdowns mills were forced to close. In many cases the worker bees scattered. Restrictions are then lifted and not only have some workers fled the area but many others don't want to go back to the mills as they are being paid to sit home.
Then there is a question of a shortage of actual mills, you would expect that with rising prices it becomes a safe bet to build a new mill. But, that costs 10s of millions and takes a long time. Whomever is deciding not to build new infrastructure has the reasonable expectation that it won't pay off in the end as we really are in a bubble.
Same with chicken and pork (my fav) pricing. Asked my butcher and he
impatiently explained that there are plenty of pigs running around and few
processing plant workers to process them.
Notice the Orwellian \8-) reference (Animal Farm) above.
I crack myself up sometimes!
Regards,
barts
Then there is a question of a shortage of actual mills, you would expect that with rising prices it becomes a safe bet to build a new mill. But, that costs 10s of millions and takes a long time. Whomever is deciding not to build new infrastructure has the reasonable expectation that it won't pay off in the end as we really are in a bubble.
Same with chicken and pork (my fav) pricing. Asked my butcher and he
impatiently explained that there are plenty of pigs running around and few
processing plant workers to process them.
Notice the Orwellian \8-) reference (Animal Farm) above.
I crack myself up sometimes!
Regards,
barts