Construction costs are out of control

[Darth_Uno]

My larger concern is the lack of skilled labor to do any construction work. The contractor that I have used for the last decade is so backed up that he may not get to me this year. Between material and labor shortages, many projects are not getting done.

It's as though you shouldn't learn to code but instead to argue worm drive vs. sidewinder.

That's the other problem. Wages are going up. While that's generally good, I now have to compete with Amazon paying you $15/hr to stack boxes in a warehouse. So my weekly payroll is now higher than ever. I just raise my prices to cover - it's my customers paying for it. But even still, you can add that on top of the material prices.

As an aside, this is a smaller scale proof that raising minimum wage just ends you up with a whole lot of nothing.

[randyho]

That's the other problem. Wages are going up. While that's generally good, I now have to compete with Amazon paying you $15/hr to stack boxes in a warehouse. So my weekly payroll is now higher than ever. I just raise my prices to cover - it's my customers paying for it.

So, worm drive.

[Moylan]

Call a forester to come take a look at what you have.

I've had the foresters out. They put together a plan to save me tax money on the land, but in order to take that benefit I more or less had to agree to their clear cut strategy, which I ain't doing. I've spoken to a couple of loggers, but neither was interested in small plots.

[RoyGBiv]

I've had the foresters out. They put together a plan to save me tax money on the land, but in order to take that benefit I more or less had to agree to their clear cut strategy, which I ain't doing. I've spoken to a couple of loggers, but neither was interested in small plots.

https://timberupdate.com/timber-prices/

I forget whether Hickory is considered HST, since it's so twisty. But if you own a lot of Oak timber, it's money right now.

[Lester Polfus]

I've had the foresters out. They put together a plan to save me tax money on the land, but in order to take that benefit I more or less had to agree to their clear cut strategy, which I ain't doing. I've spoken to a couple of loggers, but neither was interested in small plots.

When was that? Where I live small plots of Doug Fir that even small logging outfits would have turned their nose up at a few years ago are now being cut.

I think it's going to be hard to get anybody to agree to anything but a clear cut though.

[Sanch]

Alaska is really seasonal on construction, so I have a massive expenditure in April to get ready for the season. I usually buy 90 days worth of wood. This year I really could only afford 30 to 40 days worth. I guess the good news is that I'm still moving product and I'm making money at it, but the risk is high.

An odd thing I cannot buy anywhere is 1x4 through 1x12 pine boards. It's a mainstay product for our DIY customers that really aren't sold to contractors on a large scale. Nobody can tell me why I can't get any. My only assumption is that framing lumber is so high they are just producing that instead of wasting time on thinner boards.

Even though I'm a lumber retailer, I am putting all my construction projects on the back burner. There is absolutely no way these prices will stay this high indefinitely.

If you bought 40 days worth of wood back in March, you can probably just watch TV and sit on your ass for the next 3 months, and turn it around in July and resell it for more profit then you would have made for actually constructing something with it.

[Sanch]

That's the other problem. Wages are going up. While that's generally good, I now have to compete with Amazon paying you $15/hr to stack boxes in a warehouse. So my weekly payroll is now higher than ever. I just raise my prices to cover - it's my customers paying for it. But even still, you can add that on top of the material prices.

As an aside, this is a smaller scale proof that raising minimum wage just ends you up with a whole lot of nothing.

Thank God inflation is only at 2% right now.

[AKDoug]

If you bought 40 days worth of wood back in March, you can probably just watch TV and sit on your ass for the next 3 months, and turn it around in July and resell it for more profit then you would have made for actually constructing something with it.

Cool idea, but I wouldn't have any customers left. Anyway, lumber is up another 8% this week.

[fatdog]

One of my neighbors, who is primarily a cattle farmer but owns about 1K acres, almost half of which are typical Alabama timberlands, just started a clear cut, probably about 200 acres of mixed hardwood and pine. He told me he thinks about it every year, looks at the prices and offers, and this year made it unambiguous and clear to him this is the time.

[HCM]

Like any other supply and demand situation a second order effect is an increase in fifths of building materials.

https://www.google.com/amp/s/news4sa...struction-site

Two men arrested after allegedly stealing lumber from construction site
by Andrea Carden
Tuesday, April 27th 2021