Midlands lumber and building-supply companies say Hurricane
Katrina and its aftermath are hitting them and consumers at the cash
register.
“Pretty much everything is coming in on time,” but “prices have
increased sharply,” said Al Burnett, executive vice president of
Boozer Lumber Co. in Columbia.
Throughout the industry, wholesale costs have increased 20
percent to 30 percent, Burnett said, a trend seen nationwide.
For example, Boozer Lumber — a complete home and hardware supply
and construction company — has incurred a cost increase of $4.50 per
sheet of plywood wholesale in the past 30 days, said Burnett,
declining to say what the previous price was. And cost for some
lumber, particularly those measuring 2-by-10-by-16 feet, have risen
$2.40 each.
Although the majority of the damage caused by Katrina is along
the Gulf Coast, the hurricane is having a lasting effect on other
markets, and its full impact will not be known for some time.
Experts say the prices on building materials, which could lead to
higher home prices down the road, are soaring because:
• The hurricane destroyed or
damaged a number of sawmills and ports responsible for producing and
transporting the products.
• “Panic buying” among contractors
who rushed to fill their inventories for fear of shortages and price
hikes
• The enormous reconstruction
effort will put additional pressure on the supply.
The National Association of Home Builders recently reported that
no previous hurricane matched the damage caused by Katrina.
In 1992, Hurricane Andrew destroyed more than 28,000 homes, and
hurricanes that came after it damaged a combined 27,500 homes.
Hurricane Katrina and the flooding that followed will claim many
of the more than 200,000 homes in New Orleans alone — not to mention
the widespread damage to homes in Louisiana, Mississippi and
Alabama, according to the national home builders association.
The association also projected that roofing panels and plywood
supplies will be hardest hit.
After Hurricane Andrew, the national average price of plywood
rose 45 percent to $321 per 1,000 square feet. The price of Southern
pine framing lumber rose 17 percent to $308 per 1,000 board feet,
according to economists and the home builders association.
This time, the composite price for framing lumber has risen 13.5
percent, to $403 per 1,000 feet, since Katrina, according to the
trade publication Random Lengths. The price of structural panels is
up 38 percent, to $499 per 1,000 feet, for the same period.
Matt Ashley, a manager at 84 Lumber Co. on Farrow Road in
Columbia, said the company has seen price increases of $50 to $100
per 1,000 board feet of plywood wholesale within the past 30
days.
It is “one of the biggest price increases we’ve seen in a couple
of years,” said Ashley, who declined to disclose the previous
price.
Earl E. McLeod, executive director of the Home Builders
Association of Greater Columbia, said many building-material dealers
also have increased costs because of surges in gasoline prices.
Damaged pipelines and interrupted production of gasoline are spiking
prices and forcing many companies to add on fuel surcharges.
McLeod said he hopes homes already under construction will not be
affected by the recent cost increases. But, there is no
guarantee.
“Contracted (home) prices should not be affected, however, future
(home) starts could be.”
The Associated Press contributed to this story. Reach Fulton at
(803) 771-8659 or ddfulton@thestate.com.
