Lumber prices are reaching record highs, so The Pallet Guys are here to support your company through innovative, cost-saving strategies!
According to a recent CNBC article, softwood lumber prices are well over 100% higher as compared to just one year ago. And what’s worse for countless businesses throughout the United States is that lumber prices are jumping by 10% on a weekly basis and are showing no signs of decreasing.
There are plenty of different reasons why lumber prices have continued to skyrocket over the past year, and it’s probably safe to say that isn’t just a coincidence that the timeframe of this price surge also directly coincides with the timeframe of the pandemic.
Low interest rates and an exponentially higher increase in single-family housing demand are making it clear that contractors and construction companies have a substantially larger incentive to increase their overall production.
But it’s not just demand that’s pushing lumber prices so astronomically high, because the industry’s supply has also been distorted due to lumber dealers and mills miscalculating the overall 2020 market. A lot of the lumber industry actually pulled back on their overall production in 2019 due to housing construction and remodeling decreases, and many industry leaders thought this trend would continue a year ago when the pandemic was just beginning.
So in many ways it was the unexpected boom in economic recovery and lumber sales last summer that caught the entire lumber industry off guard, and this understandable lack of foresight has had a direct effect upon the pallet industry and the way that The Pallet Guys are utilizing our lumber supply.
But we would never simply say something like, “Woe is me, the lumber industry is making it harder for us to get our hands on high-quality wood at a decent price” and leave it at that. That’s not who The Pallet Guys are, because when life gives us lemons, we build lemonade stands!
Although it’s very important for all of our clients to understand the ramifications of the lumber industry in terms of our services/prices, we’re also going to be there for you through every step of the process as we lower your pallet costs and get around these unfortunate lumber price surges.
So below are 3 strategies to keep in mind to help you lower your pallet costs while lumber prices continue to skyrocket!
1. Switching To Used Pallets
Used pallets are always a cost-effective option for businesses that tend to only source new pallets, because the savings you’ll get from making this type of switch can play a significant role in lowering your overall pallet costs.
And this is especially the case right now as lumber prices continue to surge!
Many of The Pallet Guys’ clients have saved up to about 30% by utilizing recycled pallets instead of new ones, and it’s important to note that utilizing used pallets is very eco-friendly and worth mentioning within your marketing strategies.
2. Making The Most Out Of Our Total Pallet Management Programs
Total pallet management always goes a long way in helping businesses cut down on overhead costs, and you can always utilize refurbished pallets to reduce your pallet-by-pallet expenses.
But the biggest benefit that our clients receive from our total pallet management program is increasing the overall profitability of their supply chain, and this comes into effect by making your pallet management more efficient and a lot easier.
The overall structure of your total pallet management may vary, but we’ll always be sure to develop a management strategy that works for your unique needs and budget!
3. Partnering With A Highly Reputable Pallet Supplier
As lumber prices continue to increase, it will only become more important for business leaders to partner up with a pallet supplier that has the industry experience and connections to help them get through these unprecedented price surges.
It’s never been more difficult to find a cost-effective pallet solution based upon your company’s logistics and needs, which is why you’ll need to put your trust in a team of pallet industry specialists who will go above and beyond to ensure that your pallet costs are as low as possible.
The Pallet Guys are here to assist you in making your pallet sourcing convenient and affordable, so you can be rest assured that we’ll be there for you through every step as we collectively get through this lumber pricing surge together!
Reach Out To The Pallet Guys To Learn More About How We Can Support You While Lumber Prices Continue To Rise
The Pallet Guys have been in the industry for a very long time, so we’ve helped countless businesses fluctuate their pallet sourcing while lumber prices simultaneously fluctuate.
So always feel free to reach out to us online or call us at 832-895-7555 to get in touch with our team and let us know how we can support you through the current surges in lumber prices!