While hardwoods require less upkeep, they do tend to be more expensive on area in question. With so many options for patterns and finishes it’s easy to see why wood board siding is a popular.
Any time labor is involved in the production of a product, the overall costs are higher. If a more efficient way to produce plywood is ever developed, then the pricing would likely go down quite a bit. However, until that is accomplished, we will be stuck with these higher prices.
“Looking ahead, hope abounds that construction starts will soon begin a more robust rebound forecast in the first quarter. Plywood prices will rise 39.8% this year, says IHS Markit.
This begs the inquiry “When will plywood prices drop?”
I discovered plywood and lumber prices overall experienced an extreme spike in the early part of 2021, peaking in early May and dropping quickly to levels approaching but not yet matching pre-pandemic prices in July.
Lumber and plywood prices typically rise in the spring and drop by the end of fall, by about five percent. This year look for not a decline but a leveling off. Prices will remain high for another two or three years, then drop back to more normal levels.
Why are plywood prices skyrocketing?
Modern mills are very efficient at turning logs into 2x4s and sheets of plywood. Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic. Many homeowners were stuck at home, unable to vacation.
The factors for the increased prices of plywood are the same as for lumber, Church said.
The price of wood has risen dramatically over the last year “The average lumber historically has been between $300 and $400 per thousand board feet. Right now, it’s over a $1,000. I see it in the $700 or $800 price range by summer.”.