The possible effect of rising timber prices

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There’s nothing like staring at the same four walls every day for months to make you long for a fresh outlook – and that’s exactly what happened during the coronavirus lockdown.

Across the world, millions of people have embarked on DIY projects and home improvements – from fixing fences and installing decking to building full extensions – which may have a knock-on effect in the wider timber industry.

The increase in wooden product sales means that sawmills involved in the supply of timber have been working hard to keep up with demand – and we all know what happens when demand outstrips supply.

In the US, The Wall Street Journal reported that the price of lumber reached $641.60 per thousand board feet (which equates to £271.90 per cubic metre). This is the highest cost on record in the US and may affect timber prices in the packaging industry.

While there are no official figures as yet from the Poyry index, it is worth bearing in mind that the cost of new wooden pallets may rise as a result of the unprecedented demand. Should this happen, there may well be commercial pressure to consider more cost-effective options for packaging.

One way to do this is using reconditioned pallets. Pallets can be reused several times and using reconditioned alternatives could reduce packaging costs by up to 50 per cent.

As well as being more cost effective, reconditioned pallets provide your business with an environmentally sustainable solution, as reusing a pallet also helps to reduce the overuse of raw materials.

At RPS, we sort, inspect and repair all reconditioned pallets back to full working specification, meaning they can be used immediately – just like a brand new one, but at a fraction of the cost.

What do you think about the price of timber? Visit our LinkedIn company page or tweet us at @RPS_Limited to join the conversation.