Hot and steamy weather in July didn’t help the flat market, which seemed to refuse to react with any significance to any number of curtailments, closures or offers that mills could throw at dealers. As the dog days of summer coincided with scheduled family vacations, the lack of building activity across the nation was palpable, with many suppliers inquiring about upcoming business, trying to determine which direction the market would track. Weather has been a good patsy this year, taking more than its fair share of blame for a lack of activity but clearly high mortgage interest rates and property values (coupled with inflation) continue to sideline the dreams of many Americans who are eager to obtain a new home or remodel their current one, but simply cannot currently afford to do so. As optimism has faded in many parts of the country that the second half of this year will make up for lost time and opportunity, locally we are grateful that Cape Cod continues to be active with projects that are getting us through what has been the normal doldrums of summer: sales have been solid and there appears to be a good bank of business building for the fall. Although published lumber pricing has plodded along with little to no pulse from week to week, replacement prices have been sneakily holding their ground and slightly increasingly due to a dwindling supply, which has been more realized in recent weeks due to annual closures for vacations and retooling. With the official start of fall on the horizon, dealers will undoubtedly step in to cover upcoming business soon and the potential influx of demand met against a tightened supply may be the formula they have been waiting for to catapult pricing back to more profitable levels. Nonetheless, as this year has been somewhat of an enigma for the lumber market, the best one can do on this end of the stick is to keep an ear to the ground and buy what one can confidently know that they need. For August, we anticipate that prices will be flat but firm, with the potential to climb later in the month if business surges or, being hurricane season, if a weather event creates any significant disruption to an otherwise tranquil market.
Turning (selling and replenishing) lumber at this time of the year can be a challenge, as business usually slows down as we all take advantage of the summer while it lasts. As a dealer, we must be careful to rotate our inventory so that the stock that was first in is also the first out. One wouldn’t think that lumber and plywood have a shelf-life, but it does as it is very susceptible to sun and moisture damage, otherwise known as “yarding.” If you drive through our Hyannis lumber yard, you will see that we are careful to cover any lumber and plywood that will be exposed to the elements for any length of time with either a lumber cover or a sacrificial layer of stock that is meant to protect the layer it is covering. Ideally, storing lumber and plywood in a cool spot with good air flow is the best option, but it’s generally not a luxury that many of us have. Most especially in August, the intense heat and humidity can have a very swift and harmful impact on the condition of these products, so diligence in properly covering and recovering material will pay off in dividends if you wish to protect it from sun damage or mold and mildew. In most respects, sun damage can render a board useless as it will quickly turn yellow and then gray due to sun degradation but, more damaging, is the checking, cracking, twisting, and cupping that will occur when the material becomes too dry from baking in the sun, whisking away any moisture that would otherwise keep it stable. Conversely, high humidity also presents a serious threat with mold and mildew, which will occur from repeated cycles of trapped moisture and heat. The best course of action is to protect it from direct sunlight if possible and allow plenty of opportunity for ventilation by leaving an airspace on all six sides. Covering it with a waterproof material (any of our provided lumber covers will do) and keeping the stock elevated on blocks, pallets or sawhorses is paramount. As we all know, lumber and plywood are not cheap (even at today’s prices), so it’s critical to protect them as the loss can have a profoundly negative impact to your bottom line. On this topic, we are big endorsers of end-sealing (which helps to mitigate the moisture exchange in wood) and we end-seal many of the wood products we keep in our Auto-Stak racking systems (which we have at all three branches). Although it’s mandated on pressure treated items and most wood decking, it is also a best practice on any other wood product that may be susceptible to the elements. We sell end-sealers for all our wood products, and highly recommend their usage as they are an all-around worthwhile investment. Please consult your Shepley salesperson if you need any help in selecting the correct sealer for your material.
It is hard to believe that we are already in the last full month of summer, but it’s a prime time to take a break and enjoy the wonderful benefits that living on Cape Cod can bring. From all reports, it appears that we’ll be hitting the ground running when fall arrives, so taking advantage of the best time of the year to recharge and enjoy what we work so hard for will surely replenish your energy for what’s right around the corner. In the meantime, we are very well positioned with excellent quality, competitively priced inventory and ready for action. On behalf of all of us at Shepley, we are sincerely grateful for your business; thank you and have an excellent month!