The shortage of lumber penalizes the construction sector

Audio 01:31

A frame under construction.

(Photo illustration) Getty Images - fool

By: Altin Lazaj

4 min

Lumber is experiencing a shortage and rising prices.

A situation that affects the building sector in France and in Europe which is also suffering from the slowdown in activity due to the health crisis.

Publicity

Building professionals in France are sounding the alarm on a shortage of construction timber which threatens the supply of construction sites.

This wood, used for structures or even the frames of buildings, has also seen a surge in prices in recent months, between 20 and 30% increase since October.

The pandemic, the main reason for the shortage

Sanitary restrictions and containment have disrupted the production of timber and semi-processed products.

In addition, there is a worldwide disruption of maritime transport, which complicates the distribution system and causes delays in deliveries.

A situation that is likely to last until summer.

Another factor is that Americans are increasingly buying European timber.

Traditionally, they sourced from Canada, but since Donald Trump imposed taxes on imports of Canadian lumber, American companies have retreated into the European market

.

And they do not hesitate to pay a high price to obtain supplies

 ", explains Luc Charmasson, chairman of the strategic committee for the wood industry.

Rising timber prices

Conclusion: following a strong demand accompanied by a shortage, the prices of construction timber continue to rise.

This phenomenon is not only French, but also European.

As a result, construction companies suffer a double penalty.

They are forced to make fewer margins because of this increase in prices and they risk paying late delivery penalties to the sites due to the shortage of wood.

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