Hotel Wood Framing Costs Decline

Last November, I reported a price increase in the U.S. softwood lumber market. When costs historically crossed the $600/1000ft board price earlier this year, hoteliers and developers grew increasingly concerned.

Since June, however, the market has experienced a decline (see the graph below).

In the wake of these turning tides, I present the following points for hoteliers to consider:

Why the Market Increase?

  • In 2017, the U.S. announced an average 20% tariff (anti-dumping and anti-subsidy) on lumber imports from Canada (28% in 2017).
  • Wildfires in the softwood lumber goldmine British Columbia further broadened the demand-supply gap.

Why the Market Decrease?

  • Due to decreased demand and excess inventories, sawmills reduced prices this past labor day.
  • Some experts suggest that the prices could continue to fall for the next few years **

The changing trends in the framing lumber market have become a concern among hoteliers. It is more important than ever to optimize resources and reduce overall costs. Get in touch with me to explore new possibilities for your next project.

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