![]() ![]() The depth and severity of the supply chain crunch suppliers feel on a regular basis today largely depend on the region(s) from which they source. We’re literally making decisions about do we want to spend $22,000 to bring over this container of wood or not? Many of these shipping companies have figured out they’ve got a tiger by the tail and they can do whatever they want to do.” “It’s definitely shaping the way we think about our business in a way that it has never done before. “The supply chain, managing the cost and availability of shipping containers is an enormous activity that we spend a lot of time on,” said David Moore, senior director of product management, wood and laminate, Mohawk. Hardwood flooring suppliers across the board attest to the difficulties that ongoing supply chain challenges present. In the weeks following the Russian invasion of Ukraine, lumber prices climbed 14% to $1,452 per thousand board feet, according to a report by Markets Insider. Both have effectively been removed from the supply chain.”Īccording to the Decorative Hardwood Association, lumber and plywood prices increased 22.5% year-over-year in February 2022. “The war in the Ukraine has further stressed the global supply chain as Russia and Ukraine combined are the largest exporters of hardwood in the world. “Demand remains extremely strong and the constraints on the supply side are getting more significant by the day,” said Dan Natkin, CEO and managing director of the Bauwerk Group, parent company of the Boen Hardwood flooring brand. All this has combined to further strain supply in an already tight market. These include rising inflation, higher raw materials pricing amid inconsistent availability and, now, a war in Ukraine that has threatened the supply of so many goods and services, including Russia-sourced birch lumber that goes into the core layer of many engineered hardwood flooring products sold globally today. While much progress has been made in battling the pandemic, other challenges pose risks for the industry. Turns out the segment-and the industry by and large-would fare well as consumers and homeowners spent more time inside and more of their disposable income on flooring and other home improvement projects. ![]() 1 issue on the minds of many hardwood flooring executives was how the category would fare in the midst of a raging pandemic. Higher global demand for hardwood cores is driving up the cost of lumber, suppliers report.īy Reginald Tucker-Two years ago, the No. ![]()
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