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Lumber Prices in 2025: What’s Causing the Fluctuations?

Lumber Prices in 2025: What’s Causing the Fluctuations?

Material prices are up — local businesses feel the hit.

Lumber pricing in 2025 is a rollercoaster ride, driven by both global and domestic forces. Following the COVID-era shortages, demand surged in homebuilding, packaging, and commercial expansion — but sawmills have struggled to catch up, especially with labor shortages and climate-related disruptions (like wildfires and heavy storms).

Additionally, international tariffs and currency fluctuations have made importing lumber unpredictable and costly. This volatility hits hardest in sectors like pallet production, where high-volume wood is critical.

The solution? Many businesses are focusing on stronger supplier relationships and keeping more inventory on-hand. For those in the packaging or logistics world, understanding lumber trends — and working with suppliers that offer transparent pricing — is more crucial than ever.

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