Against the backdrop of rising raw materials prices, most of the American hardwoods flooring manufacturers have been forced to raise prices on finished goods. Some announced hikes at the beginning of the summer, while others increased prices in September.
According to the Bureau of Labor Statistics, hardwood prices are now over 40% higher than they were in 2009. Several factors have fueled this dramatic surge in prices.
First, overseas demand, particularly from China, has swelled over the past few years. Second, the U.S. housing recovery has helped boost domestic hardwood demand. Finally, on the supply-side, the Great Recession upended the lumber industry.
As a result, home builders have become more cautious when it comes to green lighting new projects. This implies that the housing recovery will take longer to mature and all the industries that depend on housing, from cabinet and furniture makers to household appliance manufacturers, will feel the effects.