The lumber market continues to plod along, holding all within the supply chain in a state of suspense as both short- and long-term forecasts remain unclear. As businesses look to the past to determine the future, sales histories, patterns, and seasonality have been of little help to buyers who continue to take it day by day, trying to determine which direction economic and political factors will sway the housing market. Affordability remains the key factor and while interest rates continue to garner the most attention, expanding material costs are of no less concern. Currently, as part of the Softwood Lumber Agreement (SLA) with Canada, all attention is focused on the adjustments to the Anti-Dumping (AD) and Countervailing Duties (CVD) levied upon Canadian lumber mills by the United States Department of Commerce (USDOC) as part of the SLA. A whopping 20.05% is slated to be added to the existing 14.40% AD/CVD duties, for a total of 34.45%, pending a “Final Administrative Review,” which has been predicted to occur at any moment. Coming at a time when the last thing the housing market needs is added expense, the ramifications of this adjustment are most concerning as it could punt out of reach the affordability of a new home for many potential buyers. Canadian lumber mills had no issue pre-empting the adjustment by quoting higher prices, in anticipation of their implementation and at a time when they are easier to mask, as lumber supplies are now low due to closures, summer shutdowns and intentionally reduced capacities. Although demand has been tepid, prices are beginning to rise and certain dimensions like two-by-four are climbing particularly fast due to scarcity. Lumber mills will take advantage of this by continuing to restrict production, however, it’s tough to starve a market that hasn’t had much of an appetite. As uncertainty continues to undermine any enthusiasm for sales, we anticipate prices will be propped up in August despite a weak demand, as tight supplies will merit the price and especially if they are inclusive of the SLA adjustments. For our own inventory, we are well stocked with material that should weather any upcoming pricing turmoil that may play out.
Although some companies have a different approach to it in this industry, we believe that providing great customer service matters, so feedback from our customers is imperative if we want to know how well we are (or are not) doing. The saying goes that “no news is good news,” but is it? A silent customer can be profoundly more concerning than a vocal one. In our opinion, there is such a thing as a “good complaint,” and it is the 0ne that you hear about. Feedback is a gift, good or bad, and although no one wants to be the recipient of a complaint, not being made aware of it prohibits you from making it right. If your customer isn’t inclined to call you out on the problem, you can count on their dissatisfaction to be registered in the form of lost future business, either with them or (even more far-reaching) through their communication with their extended network and social media. Issues that arise often go unspoken: for some, it’s uncomfortable to complain, as it can not only change the relationship and build tension, but also because it demands accountability and action. In the spirit of delivering exceptional customer service, it’s best to take ownership of the situation and simply ask them if they are satisfied with doing business with you. The opportunity to address issues rather than letting them fester is a golden one, and there is something quite comforting and disarming when a person you have employed concludes the contract by sincerely wanting to know how satisfied you are with their work. On the other hand, consumers have an obligation to be reasonable and truthful, especially to the professional contractors who stake their livelihoods upon their reputation. In our industry, where customers are likely to spend more money on their homes than anything else that they have ever bought in their lives, we are especially sensitive to a customer’s dissatisfaction. Something as personal as a home will likely become a daily reminder of the work that was performed, so it’s key that they are reflecting upon it with satisfaction and not disappointment. We appreciate your feedback and can assure you that we will employ a profound sense of urgency to react to issues as they arise, as we sincerely want to deliver on providing exceptional customer satisfaction. We also understand the pressure that you are under to meet the demands of nervous and impatient customers unfamiliar with the construction process and all its quirks, so know that we are here to support you. We are not in the building products business, we are in the people business and our focus is on you, our customer. Our end game is a happy homeowner as well, so you have our commitment that we will strive to find the most efficient and positive outcome for all.
This business isn’t all about complaints: most of the time, we have enjoyably smooth successes and very satisfied customers. We’d like to think that we’ve reached this point by being a company that has always had a consistent, personal stake in our customers’ satisfaction. In our 47 years in business, we have had plenty of experience of being advocates for our customers and are grateful to each one who has helped us improve our game. Thank you for your business!