To Our Valued Customers: We want to update you on the commodity lumber market. Many of our customers have expressed concern about what is going on. Good questions abound. Will they have the supplies they need? Will the cost of goods continue to rise? What should they do to get out ahead of supply needs? We appreciate you asking us questions and want to assure you we have answers.
First, the lumber market is experiencing record high prices and it has happened quickly. You need to be concerned about pricing. We expect prices to remain at this level or higher for the foreseeable future. Since we can’t change the market, our advice is to focus your concern on making sure you capture the pricing in the product you are selling. Being constantly aware of the pricing changes wrought by this runaway market is the first step. Our Composite House Report is published once a month. You should supplement your knowledge of this fast-moving market through your conversations with our lumber salesmen and location managers. They are on point to help you with information.
Next, we understand your worry about having enough product. We have 44 years of experience worrying about the same thing. This is not the first runaway market in our history. It has been exacerbated by the impacts of the pandemic, but it is manageable. We have deep relationships throughout the North American lumber markets, and they are paying off now more than ever. That does not mean that we have every product in limitless quantities. It does mean that we have enough product on the ground and constantly rolling toward our stores to keep supplying you on a just in time schedule.
Just in time supply is where the industry is right now. There are some guard rails around just in time supply. An important one is that we all have to trust the system. Shipments to jobsites that are ready for the materials only. Every stick and panel counts. Early shipments or attempts to hoard will derail the system.
We know it is frustrating to experience this change, when we are all used to being able to ship what we want, when we want it. Just in time requires more communication and a bunch of patience. We appreciate your participation in this more than we can ever express.
Our product experts are in the market every minute of the day, buying, shipping, moving product around the company to fill anticipated needs. At any given time, we have dozens of trucks and rail cars of commodity lumber in bound, on top of the hundreds of trucks we have moving lumber to jobsites across Idaho and Nevada. As we write this, we are buying commodities for shipment in November, based on the demand we anticipate. Despite all of this, there will be spots where we are short on a particular dimension or panel and waiting on a truck. They will continue to be rare occasions and we apologize for the short delay. We are confident that our just in time system will work to keep you supplied with what you need.
To make this work, you should know that we are avoiding sales to folks trying to take advantage of our stock. We have turned away other lumberyards trying to buy units of materials off our sales counters. We regularly repel speculators who try to purchase truck loads out of our yards, only to sell them to others at a higher price. Our commodity lumber is reserved for you, our customers, to use in your projects, one project at a time.
Please lean on your lumber salesman and local manager. They will do everything in their power to help you keep on schedule. They are the most immediate font of information to answer your questions. We are also available if you want to talk. Give us a call.
Now more than ever, this is a time for all of us to be aware and transparent about what is going on. We sincerely appreciate your trust and value your business. Thank you for being our customer!
Sincerely,
Rick Lierz, CEO
Levi Smith, President
James Dowen, VP of Purchasing