Hardwood producers announce price increases

HomeInside FCNewsHardwood producers announce price increases

Volume 26/Number 28; June 10/17, 2013

Changes in supply and demand affecting lumber market

Hicksville, N.Y.—Citing the rising cost of lumber as the main cause, several of the industry’s major hardwood producers have recently announced price increases on their solid and engineered products. These mills include Armstrong, Mohawk, Mannington and Mullican.

Armstrong announced on May 29 that it will initiate a 5% to 7% increase in the U.S. and Canada on all solid hardwood and on select engineered hardwood products effective with shipments made July 15.

“The cost of lumber continues to rise due to the demand for wood sharply increasing. The supply is lagging behind as sawmills slowly come on line,” said Kevin Biedermann, senior vice president, Armstrong Residential Floor Products.

The outlook for lumber includes continued rising prices. The two driving factors attributed to the increases are strong demand and limited supply, according to industry experts. Due to the U.S. housing market recovery plus strong demand from the industrial lumber market, China and Asia will keep upward pressure on prices.

Mohawk also recently announced it will raise prices up to 7% on all Mohawk brand solid and select engineered hardwood flooring products, effective on all orders placed on or after Aug. 5.

“The cost of lumber continues to rise due to the demand for wood coupled with a slower supply response,” explained Jamie Byrne, senior vice president of hard surfaces. “This sustained increase in raw materials impacts  our hardwood production.”

Mullican reported similar news. “We have announced an increase of 5% to 7% on solid products starting July 1,” said Brian Greenwell, vice president of sales and marketing. “The reason is a significant spike in lumber prices over the last few months.”

Earlier this spring, Manning-ton’s price increase of up to 10% on all engineered wood floors and trim, became effective with shipments as of May 13.

As the housing market continues to improve, said Kim Holm, president, residential business at Mannington Mills, the market will experience unprecedented increases in raw material pricing as well as log shortages. “These two factors have driven our costs up to a point where we must pass along a price increase. We continue to be optimistic about the economic recovery and the future of our industry.”

 

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