Hello everyone! This is Iwase from sales!
In this issue, we will discuss “wood shock,” which has been in the news a lot lately.
This news may have an impact on those who are going to build houses.
It is believed that there are two major factors that led to Wood’s shock.
The first is “increasing demand for construction lumber on a global scale.
The demand for single-family homes has increased as a result of the shift to work-from-home due to the coronavirus pandemic and the increased time spent at home due to stay-homes and other factors.
Of course, Japan is not alone.
The increasing demand for housing in large countries such as the U.S. and China has increased the demand for lumber, and existing construction lumber is being competed for by countries around the world.
Unfortunately, however, Japan does not have the financial resources or national strength to compete with other countries to acquire lumber.
The current situation is that building lumber does not make it to Japan because we cannot compete with the U.S. and China, which can purchase large quantities of lumber at normal prices.
The second cause is “container shortage.
A large number of containers are needed to transport lumber from overseas to Japan.
The coronavirus outbreak has led to a drop in distribution, and the environment in which people spend their time at home has increased the use of online shopping, etc., putting pressure on distribution worldwide and causing a shortage of containers.
In addition, the stranding of a large container ship in the Suez Canal in March has caused delays in container transport to Japan.
In other words, even if Japan were able to purchase lumber, the lack of containers makes it impossible to transport the lumber to Japan.
The shortage of containers has affected not only lumber, but also foreign-made dishwashers such as Miele and Bosch and imported lighting fixtures such as Louis Paulsen have been affected by the arrival of these products.
These two factors are the reason why building lumber prices around the world are at high levels on a daily basis.
Depending on the type of wood, we hear of prices that are 20% to 50% higher than the original price, and even double the price for some things.
A negative impact that will occur to those who are thinking of purchasing a home in the future is that they will not be able to build or buy a home.
Currently, looking at the housing industry as a whole, the future is uncertain as to what price building lumber can be purchased at and when it will be available.
It means that even if you find a good piece of land, you may not know when you will be able to build a house.
Fortunately, LID has a good prospect for securing lumber for the time being with the pre-cut company with which we do business.
However, if this situation continues for a long time, it is difficult to predict the future.
How to overcome this wood shock will be the next phase of home building.
If you have any questions or concerns, please feel free to contact Lid.