Sticker shock

[Cochese]

I went to the lumber yard today to pick up a few sheets, and I about said forget it. Plywood prices JUMPED at the end of February here, thanks to a tariff on Chinese plywood. What used to cost about $30 for a sheet of Birch shop grade (which is all I need for shop cabinets) is now around $40. This is supposedly to counteract a subsidy they are getting, but guess who now gets to pay it.

If you've been hit with this, you know. But if you haven't been to the yard lately, it's going to be a bit of a surprise. My project cost went from $120 to $160.

[durango dude]

Most of my plywood comes from pallets that I pick up at a nearby furniture store.

(they sell furniture assembled in Northern Europe - and the pallets are made of some beautiful plywood - I'm guessing leftovers from the furniture).

[sweensdv]

I sure hope that tariff means we will be seeing more USA an Canadian product on the shelves. If that happens than its an increase in price that I can live with. I don't see any reason why the Chinese plywood companies should be given an unfair advantage in this market that was orchestrated by their government.

[cork58]

Boy, if I could only buy the same thing for the same price up here! Cheap stuff starts at around that price.

[tommyt654]

Yup,Its gotten ridiculous but considering inflation I'm surprised its not more. Why not check with a local sawyer and make your doors/sides/back out of a glued up panels (assuming your making a face frame and painting the panels) instead of ply,prolly cheaper and maybe even look better.

[iceman61]

OSB has doubled in price due to the east coast destruction. It has gone from $7 per sheet to over $15 and word has it that it will soon be at $18 per sheet.

I was about to build my shop but it's killing me to even think about it.

[cabinetman]

Plywood is a commodity and price can vary daily...get used to it. A $10 a sheet increase for a small job seems outrageous, but it's the wave of our economy. If the project was for a client, the increase is just figured in the price. If it's for yourself, you should just shop the material around for the best price.

I try to get a commitment on price from my suppliers, as it can vary considerably. One of my larger projects was a new hotel, with over a hundred rooms (suites) with cabinetry and bedroom furniture. My first order of plywood and laminate was over $15K. On a project like that if the cost varied much from my initial pricing, the loss would be surmountable.

.

[chopnhack]

Good reminder to check with my local house to see what the going rate is lately... Didn't realize it was the reconstruction up north pushing the prices higher, but it makes perfect sense.

[Warren]

I'm betting that a rise in taxes, salaries, and/or transportation costs (or a combination of) is more likely the cause in the increase cost. Regional demand might have a bit of an effect, but I doubt it was much of a factor.

No business pays taxes. Farmers, lumber suppliers, fast food companies, oil producers, computer companies, plumbers, tool makers and vendors, etc. pass all costs onto to the end user. Increases in fuel taxes, inventory taxes, minimum wage, property taxes, etc. are all passed on to the customer. It's the rock thrown into the pond ripple thing. All costs must be passed on to the consumer and a profit realized or the business cannot survive. Investors and owners want a return on investment.

While supply and demand are a driving force in retail prices, transportation costs, advertising, labor, taxes, and a myriad of other factors enter into the equation. Taxes are usually accessed annually and can be factored in once a year. Fuel costs are volatile and often necessitate an increase more frequently. Never hold your breath waiting for a reduction when transportation cost is reduced. If customers have proven tolerant of a price increase there is no reason to lower it, as other costs will soon be increasing (taxes, rental, employee salaries, insurance, etc.) and, if such increases are minimal, some profit may still be realized while maintaining the price of the product until driven to increase in order to survive.

It really is that simple, all costs of doing business must be passed on to the customer and a profit must also be realized so that the owner/investor can eat and have a roof over their head while sending the kids to school or buying a new truck for the business.

[Cochese]

I sure hope that tariff means we will be seeing more USA an Canadian product on the shelves. If that happens than its an increase in price that I can live with. I don't see any reason why the Chinese plywood companies should be given an unfair advantage in this market that was orchestrated by their government.

Not sure of the actual (vs stated) reason behind ending the subsidy. Not sure if the Chilean companies had a subsidy, because that stuff (some might say crap) is about the same price still. I don't know who is going to benefit from the fairness of it, but it's certainly not the consumer.

Inflation I can deal with. It's predictable and gradual. Price fluctuations based on S&D I can deal with. This is like seeing gas prices go up a buck at a time, instead of the normal price increases.

Sad part was it was still the cheapest there. 5x5 BB was only a buck more, if I wasn't in need of 8' lengths.

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