A host of factors that converged in August propelled the market forward, stimulating sales that had been stagnant for months. Perception of a limited downside risk spurred buyers into the market as supply (which was already thinned out due to summer shutdowns and a retraction in production) was affected by Canadian wildfires which shut down sections of railways, interrupting stock from the West Coast. Then, at midnight on August 22nd, a negotiation collapse between the Teamsters and Canada’s two largest railways, (Canadian National (CN) and Canadian Pacific Kansas City (CPKC)) shut down freight and passenger rail entirely, a first in Canadian history. Anticipation of the lock-out and its ramifications had spurred buying but, within 24 hours, the Canadian government mandated employees back to work and, in the end, the short-lived interruption didn’t have much of an impact on the market. Finally, Canadian mills were hit with newly adjusted Softwood Lumber Act duties by the U. S. Department of Commerce for countervailing and anti-dumping, which increased on average by 6.5%, to a new average of 14.54% for most mills. Coupled with a volatile stock market, lowered interest rates, hurricane interruptions and the onset of fall business, there was every reason for buyers to jump in and buy. However, business across the nation has not performed at a level that is satisfying the industry and concerns about a dearth in demand heading into the fourth quarter have made buyers reluctant to add more inventory than they need to. Conservative optimism seems to be the shared sentiment for the rest of 2024 and, with that in mind, buyers have actively fulfilled their needs but have done so with adjusted future sales levels in mind. Taking into consideration the aforementioned factors that are impacting supply and pricing, activity in the market is good but buyers continue to largely order hand-to-mouth, watching and waiting to see how much and how fast their inventory is consumed before they rush out and reload the proverbial boat. From these recent events, there is a new baseline for lumber pricing that is creeping up and a strong likelihood that a replenishment cycle will occur as October nears, which will likely drive prices higher. Please be sure to stay in close contact with your Shepley salesperson for any assistance you may need on your upcoming projects.
According to the Oxford Languages, the word “value” has six definitions as a noun and two as a verb. One could be hard-pressed to try to identify all definitions, but what “value” means to us as consumers is simply what we get for our money. With that in mind, it’s a little funny to see what affect the Massachusetts Tax Free weekend does to consumers’ mindsets when it does come around because, very much like Black Friday, shoppers will place value solely on the cost of the product and hardly any on the supplier of the product: whoever is running the biggest discount typically wins the sale. To that defense, sometimes it doesn’t matter much where you buy something from if you’re just looking for the cheapest price; on-line shopping is a great testament to that and, admittedly there is incredible value to be had when you can click a few buttons today and get what you want at the best price delivered to your doorstep tomorrow. However, not all items we buy (particularly building materials) can be treated as cavalierly because value does come from more than just the sticker price: people make the difference and the reason they make the difference is the service that they provide that goes along with the products. These services cannot be replaced by, essentially, a virtual vending machine such as Amazon. With complex and expensive purchases, you need someone who is a professional in their field that you can trust and who is accountable to you. Although this describes most successful salespeople who sell through a sole product or brand category, there are definite limitations to what an individual salesperson can handle. Few are backed up by support teams who take the pressure out of being a “Jack of all trades and Master of none.” In today’s building industry, you need “Masters” in every category because, as we’ve often emphasized, the building process is extremely complicated and building materials offer no solace at all: they are ever-changing, demand a great deal of attention and are exceedingly expensive. That’s why our model of having Vertical Product Specialists is so unique and successful: with experienced professionals specializing in Estimating, Engineered Wood, Andersen Windows and Doors, Interior Trim and Architectural Hardware, our Sales Team Leaders can fully focus on your project and provide the service and deliver the value you need for it to be correct and on time, deferring to the other product category “Masters” when needed. Granted, sometimes you don’t need the service, and we respect that: we may not be the right fit for you. However, we’ve found that the best homebuilders, architects, and designers around have found the value of our services to be exceptional and have faithfully turned to us for their needs and our support for over 46 years. We are genuinely happy and proud to be part of the building community that has had a hand in the often-stunning architecture found here on Cape Cod and Nantucket and we work our hardest every day to escalate our value to our faithful customers.
The “Value Triangle” is a framework often used in business in which three points, Quality, Cost and Time make up the whole of a triangle. All three contribute to Value but the quandary is that you can only have one point reign supreme as the other two come at its expense. While we respect and are intrigued by this model, we see ourselves as “Value” itself and strive to exceed the limitations of all three points with what we do, every day. Thank you for your business.