by Freedonia Industry Studies
November 12, 2020
Freedonia experts have frequently posted here about lumber prices and their effects on the building construction market. Today, however, it is time to look at this issue from another side – namely, that of the companies that sell lumber to construction professionals and DIYers.
A number of these firms are publicly traded, and they reported strong growth in sales and profits due to both the higher demand for lumber and the higher prices that the material has been commanding:
The question these firms (and others) will face going forward is whether these record profits can be maintained. While new home building activity remains strong and there is still a high level of interest among homeowners in home improvement projects, other factors may point to a less rosy outlook:
Going forward, Freedonia experts will continue to monitor lumber prices – and the companies that make and sell lumber and building materials – as part of our extensive coverage of the US construction industry.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.