Lumber shortage?

As someone who spent 15 years in the skill and logging industry, the situation at hand is a result of a perfect storm.
Covid closures caused many mills to go under.
That sent loggers under.
Mills weren't buying, brokers weren't selling lumber, and the whole poopshow got really tangled.
My business went under a year ago.
There's 5 huge Milling companies that are controlling the markets right now.
They're driving prices through the roof.
Demand far outstrips supply.
Locate your smaller local mills for better prices.
Log prices are slightly up, but nowhere close to justify retail prices i see.
As an example, 4 side clear red oak logs are bringing 95 cents a foot, but 4/4 s2s (15/16 surfaces 2 sides, kiln dried) is wholesaling at 3.15 a foot.
That's about 40% over normal. Generally, it would be around 2.50 to 2.55 a foot.
Locally, I can buy green 1com red oak at 80 cents a foot.

 

So i see you dont understand the basics of how that program worked.
Employers have to pay all of it back if they didnt use it for payroll for employees-
Thats why it was called the paycheck protection program. Because it protected paychecks.
So if a company “got millions” and laid all their employees off- theyd be paying back those millions or going to prison for fraud

 

####, you guys weren't kidding....

 

I would take that load. They want it tarped, have to get another $250 for that.

 

"But sir, it's already $38 per mile." *goat noises in the background*

"Yeah, I don't haul cheap freight. Take it or leave it."

 

Tell ya what I’ll do for ya, make it an even 18, and I’ll tarp for free. I get a good rate, you get free tarp. Your customer is gonna love it, they’ll think your the man!
I won’t even mention the goats.

 

"$18,000? Can you meet me in the middle at $500?"

 

Sounds like an episode of Pawn Stars

 

I understand that’s how it works.
The mills closed and collected PPP and paid the employees for not working , so it didn’t cost them anything .
And with a closed mill they had much much lower expenses.
and now they are selling the lumber for 3X .

what’s not to like ?

delta air lines got $5 BILLION aim free handouts from the fedgov .

how much each lumber mill got is harder to determine but I’m confident it was quite a bundle of borrowed money that your kids and grandkids will have to pay back.