An analysis of declines in hardwood lumber price of the past 40 years

Abstract

Over the last 40 years, hardwood lumber prices have fluctuated as a result of overall economic activity and periodic inventory adjustment. Still, the decline in price for major hardwood species that began in the spring of 2004 and continued until the summer of 2009 is by far the most significant. In this article, we will examine just how much hardwood lumber prices declined during the most recent downturn relative to declines in eight previous recessions and inventory adjustment-related downturns since the late 1960s. Because prices of individual species do not always trend in the same direction, we have developed a composite price for green 4/4 No. 1 Common (1C), consisting of all 12 Appalachian species currently reported in the Hardwood Market Report . Also examined is the 1C composite price of the seven most abundant species in this region (Ash, Cherry, Hard Maple, Soft Maple, Red Oak, White Oak, and Yellow Poplar).

Citation

Luppold, William G.; Bumgardner, Matthew S. 2010. An analysis of declines in hardwood lumber price of the past 40 years. HMR Executive. 4(4): 1-6.