How Lumber Tariffs Are Impacting the Fence Industry

by | Oct 10, 2019 | backyard fencing, Helpful Fence Information, Residential Fence

How lumber tariffs are impacting the fence industry | Fence OKC

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As Autumn rolls in over the country, people are scrambling to complete last-minute renovations and construction projects to their homes and properties before winter sets in. However, people who had been previously researching cedar fencing materials and types during the beginning of the year may be in for a bit of surprise when they go out to purchase building materials or get bids from fence contractors.

The past and recent United States trade tariffs against other countries are impacting many businesses nationwide, including the fence industry. Homeowners feel the lumber tariffs hit their wallets.

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What is Going on with the Lumber Tariffs?

Since last year, the Department of Commerce warned consumers and businesses that they would implement a range of presidential tariffs against certain goods and raw materials exported to the United States from other countries. More than 20% of the import duty was placed on Canadian softwoods as this tariff impacts companies throughout the construction sector.

Due to the forewarning about those tariffs, many companies began buying surplus lumber at lower prices at the beginning of the year before the tariffs took full effect. Other companies started looking to source certain wood products from countries where lumber tariffs, such as Brazil, would not hit. Another option was for companies to switch their lumber inventory completely to local American wood products.

How Are Lumber Tariffs Impacting the Fence Industry?

The construction industry has had mixed reactions regarding what these lumber tariffs will do to specific businesses. Some people believe that tariffs will even be the playing field for the timber industry to compete domestically better, as they will lower prices to attract more customers. Lumber purchasers worry that the narrower choices on where they can purchase lumber will impact their products and services and increase pricing.

For many fence contractors, the lumber tariffs could impact their bottom lines in many ways. If they continue purchasing Canadian softwood products and plywood, they must fork over the 20% import duties. Rather than absorb this cost into their operations, many contractors will pass these expenses onto the customers by raising their quote prices for fence construction products and services. This scenario also holds if they decide to import lumber from other countries, as the increased costs of shipping the lumber from the new location would be passed down to the consumer.

It will all come down to the type of lumber purchased and offered to consumers. Some contractors may lower their prices because they import cheaper wood types from other countries. Yet the more inexpensive wood may not be of better quality than the Canadian lumber that was previously purchased.

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What This Means for Consumers?

Ultimately, homeowners may find themselves footing the lumber tariff bill with more expensive fences. Lumber prices were 70% higher in May 2018 than in May 2017. Whether this increase will only be a short-term trend or will have a longer-term impact on the fence industry will be unclear as the approaching winter and the holiday season will influence construction projects across the country.

Homeowners may see increases in their construction quotes for all projects, including fences on their properties. The types of increases may be modest. Other times, it could be a significant spike depending on the desired wood type and where it will be sourced. Tracking lumber prices and what is available can help homeowners determine the average prices for certain wood products in their locations. Then, they can take these prices and the construction labor quotes they receive from contractors to compare whether they are getting a good deal with their fence project.

Like always, a homeowner should receive numerous quotes from different fence contractors. They should also always visit the fence company’s website and check out its photo gallery to see the types of previous projects the fence contractor has completed. Going with a trusted and reliable professional company that offers quality craftsmanship will ensure that the homeowner is getting the best deal for their money. They will also receive a superior fence structure that lasts many years.

Fence OKC Provides Superior Fence Construction Services

While the lumber tariffs and construction industry are unknown, Fence OKC will give you peace of mind that your fence project will run on schedule and budget in Central Oklahoma. We offer a variety of fence construction types and materials, including wood fences, metal fences, and pre-cast concrete products. We can complete your fence construction project satisfactorily by providing competitive, free estimates and quality services.

Veteran-owned and operated as we provide residential and commercial fencing products and services, let Fence OKC work on your next project. Contact us today to learn more.

Need of a New Fence?

Fence OKC would love the opportunity to serve you and your family by offering a free estimate on your fence project. Please get in touch with us using the form below or call us at 405-778-1545. We have a fence to fit anyone’s budget.

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