Why did Integrity Fencing cross the border into Canada (figuratively)? To stock up on lumber! The owner of Integrity Fencing seized an opportunity to get ahead of the impact of the US tariffs being put into place and secure inventory before the pricing increases.
As the threat of tariffs on Canada and China swung back and forth in March and April, Integrity Fencing owner Shawn Beard thought he needed to take action to prevent paying exorbitant prices for their lumber. He set out to purchase anything he could from his regular Canadian lumber mills. However, he found the mills were already in triage mode, having to re-man positions vacated, and that tariffs were already in place on the southern border of US and Canada.
The Challenges Tariffs Bring to the Construction Industry
Just obtaining quotes for lumber is tough right now. Certain materials are graded differently based on their classification. Finished materials are rated higher, and thus, the tariff is higher. Sugi cedar, for example, is wood from a tree that ships from China or Japan and is heavily impacted by the tariffs. Additionally, the tariffs can affect orders already placed. The cost will jump beyond the original purchase order.
Many southern border Canadian lumber mills are seeing their orders being cancelled by customers. This is due to the price increase and the time it takes to receive the product. We’re looking at 13 weeks versus the usual eight weeks. Supply and demand are tremendously affected. Pieces of lumber, such as a 2”x4”, are now costing a dollar more for a single piece, which really adds up when you are ordering hundreds of pieces. A Japanese cedar post costs three dollars more a piece now.
Related Read: Why You Want Your Fencing Contractor to Use Quality Lumber
Going the Distance for Quality Canadian Lumber
Worried he was too late, a stroke of good fortune found Shawn communicating with a lumber mill in northern Canada that was excluded from the tariffs. He was able to purchase a year’s worth of lumber for the Integrity Fencing supply yard. Now, the company is somewhat insulated from the immediate pricing impacts of the tariffs.
Smaller fence companies are not going to be so lucky. The lumber market in general is going to increase, and the longer you wait to build a fence or deck, the more it’s going to cost.
In closing, if ever there was a time to say, “Call today!”, it’s now. So, call us today to get your free estimate, and let’s get your fence or deck project moving along with the lumber we currently have in stock! 303-777-7782 or contact us via email.