The drawn-out winter also affected prices, which have doubled in some cases
By Justin McElroy, CBC News Posted: Jul 27, 2017 10:22 PM PT Last Updated: Jul 28, 2017 8:17 AM PT
The size of the B.C. wildfires and the length of the evacuation orders are having a big impact on plywood prices throughout the province, say those in the lumber industry.
In some cases, the price of plywood has doubled because mill and supply routes have shut down for extended periods of time and there was a slower start to the season because of the longer-than-usual winter.
“We have operations having to shut down due to fire risk out in the bush, and log production being curtailed and helicopters who could be helicopter logging off fighting fires,” said John Iacoviello, a manager with wholesale lumber supplier Probyn Export.
“We’re passing on the whole bill to the customer at this point and it’s obviously sticker shock to them,” said Guy Taylor of Averra Developments.
Taylor said he hasn’t seen costs this high in 18 years of being in the industry.
“They’re not aware of this increase as much as we are so we have to pre-warn them and already with building costs at an all time high, this is driving them even higher.”
It means builders have to order their plywood farther in advance than usual, causing more delays, which result in extra costs.
- Lumber prices see ‘big jump’ after wildfires in B.C.
- Williams Lake, B.C., residents cleared to return home after wildfire forces evacuation
- When wildfires emptied the area west of Williams Lake, B.C., they stayed behind
“When you’re building for a client, and you’ve got a timeline to meet, and you can’t meet a timeline because the lumber is not there, that’s something we’ve never had to deal with before,” said Taylor.
Bob De Wit, CEO with the Great Homebuilders Association Vancouver, said the delays and higher plywood costs have already caused a slowdown in housing starts in the Lower Mainland.
“Condo developers will be re-tendering projects because they can’t make quotes they’re getting [from suppliers] work economically,” he said.
“It’s leading to delays in larger developments, and it’s leading to homeowners who are building their own homes with a builder, to go out and look for more quotes.”
