The Softwood Forest Products Buyer - July/August 2024

WASHINGTON REPORT —Continued from page 24
employment growth averaged 248,000 per month, compared with the 251,000
monthly average gain for 2023.
In May, the unemployment rate rose to 4.0 percent, from 3.9 percent in April.
The number of unemployed persons rose by 157,000, while the number of employed
persons decreased by 408,000.
Meanwhile, the labor force participation rate, the proportion of the population
either looking for a job or already holding a job, decreased two percentage points
to 62.5 percent for May. Moreover, the labor force participation rate for people
aged between 25 and 54 ticked up to 83.6 percent. While the overall labor force
participation rate is still below its pre-pandemic levels at the beginning of 2020,
the rate for people aged between 25 and 54 exceeds the pre-pandemic level of
83.1 percent.
For industry sectors, health care (+68,000), government (+43,000), leisure
and hospitality (+42,000), and professional, scientific, and technical services
(+32,000), have notable job gains in May.
Employment in the overall construction sector increased by 21,000 in May, after
no change in April. While residential construction gained 3,500 jobs, non-residential
construction employment added 17,100 jobs for the month.
Residential construction employment now stands at 3.4 million in May, broken
down as 950,000 builders and 2.4 million residential specialty trade contractors.
The 6-month moving average of job gains for residential construction was 6,167
a month. Over the last 12 months, home builders and remodelers added 71,900
jobs on a net basis. Since the low point following the Great Recession, residential
construction has gained 1,376,000 positions.
In May, the unemployment rate for construction workers declined to 4.2 percent
on a seasonally adjusted basis. It marks the lowest unemployment rate for construction
workers over the past 11 months. The unemployment rate for construction
workers remained at a relatively lower level, after reaching 15.3 percent in
April 2020, due to the housing demand impact of the COVID-19 pandemic.
Mortgage Rates Increase Slightly, Then Ease Back In June
According to Freddie Mac, the average 30-year fixed-rate mortgage increased
by 7 basis points (bps) in May 2024, reaching 7.06 percent, up from 6.99 percent
the previous month. This represents a 64 bps increase from the previous year,
when it stood at 6.34 percent. The 15-year fixed-rate mortgage also saw an increase,
rising 8 bps from April 2024, and 54 bps compared to May 2023.
As of the week ending June 7, 2024, the latest data shows a slight easing
in mortgage rates, with the 30-year mortgage at 6.99 percent and the 15-year
mortgage at 6.35 percent. On the other hand, the average 10-year Treasury yield
decreased slightly by 6 bps after a sharp increase between March and April.
Per the National Association of Home Builders (NAHB) forecast, they expect
30-year mortgage rates to stay elevated at around 6.66 percent at the end of 2024
and eventually to decline to under 6 percent by the end of 2025. The NAHB
outlook is for the federal funds rate
to be cut at the December Federal
Reserve meeting and six more rate
cuts in 2025. n
RETAIL REVIEW —
Continued from page 26
their dedication to innovation,
broadening their customer base and
continuing to add to their history as
providers for the film and television
industries, according to a company
statement.
Visit www.lenoblelumber.com
for more information.
R.P. Lumber Co. Expands In
Missouri
R.P. Lumber Co.’s acquisition of
Thorne Lumber Co. was recently
finalized but the agreement terms
have not been disclosed. Thorne
Lumber Co., founded in 1988, is
an independently owned retailer of
building materials and hardware
with three locations in Northwest
Missouri.
R.P. Lumber Co. opened its first
location in Staunton, IL in 1977 to
serve the St. Louis area, in Edwardsville,
IL, before expanding its
reach to other states. R.P. Lumber
Co. will have a total of 87 locations,
with 20 of those locations in
Missouri.
R.P. Lumber intends to collaborate
with the existing teams at
each Thorne Lumber store, while
growing their mixture of products
and available services as they
initialize a spotless transition and
continue to serve their customers.
Visit www.rplumber.com to find
out more.
Lugbill Supply Center Acquires
Affiliated Lumber
Lugbill Supply Center, a member
of the Fort Wayne, IN, based Do it Best co-op, has announced the acquisition of
Affiliated Lumber as part of a bigger plan for expanding the business, which now
has expanded to two locations in Northwestern OH. Affiliated Lumber, a provider
of lumber and building materials, is located in Swanton, OH and has been
serving Northwest, OH for over 70 years.
According to their website, Lugbill began as a company that traded livestock
around a century ago and in 1962, the company purchased a lumber business
from Riegsecker Bros. Since then, Lugbill Supply Center has been gradually
increasing, modernizing and adding to their product line.
Lugbill President Isaac Weber is open-minded about company growth and
competition, which stems from his drive to expand the company through more
acquisitions or from the ground-up. Weber also desires that these locations be
accessible for all types of customers, according to published reports.
Visit www.doitbest.com for more.
Carter Lumber Expands In Kentucky
The success of Carter Lumber’s showroom collection, which opened in 2020
to serve remodelers and professional builders while focusing on cabinetry and
millwork, encouraged the company to create a full-service lumberyard. Despite
beginning deliveries in May to more established customers, the official start-date
of the lumberyard was June 1, 2024.
The company was founded in 1932 in Arkon, OH and, as written on the company’s
website, they offer 12 – 15 species of wood for a variety of products, in
addition to floor and roof trusses.
As the fifth largest, professionally
focused lumber and building materials
supplier in the United States,
Carter Lumber serves its customers
through more than 170 locations
across 13 states. The location will
be managed by a professional with
over 20 years of experience and
Carter Lumber promises a seamless
transition.
See the company’s website,
www.carterlumber.com for more.
US LBM Acquires Better Built
Truss
Privately owned company US
LBM is considered the largest,
full-line distributor of specialty
building materials in the United
States and they expanded the scale
of their network of nation-wide
locations by acquiring Better Built
Truss. Better Built Truss, located in
Northern California, was originally
named Durabilt Truss Inc. when
it was established in 1964 as a
prime manufacturer and supplier
of structural roof and floor components
and from 1996, the company
has been experiencing sustained
growth.
As noted on their company website,
after its opening in October of
2009, US LBM has over 450 locations
nationwide and, in addition to
other accomplishments, they were
also ranked at no. 2,408, for the
three-year period of 2019 – 2022 in
the 5000 list. After acquiring Better
Built Truss, U.S. LBM operates 12
locations in Northern California, in
addition to Homewood Truss and
three structural component manufacturing
facilities.
President and CEO of US LBM,
L.T. Gibson, mentioned that the
addition of Better Built Truss will
permit them to meet the growing
demand for structural building in
Northern CA and acquire more
customers.
Jeff Qualle, who joined Better Built Truss in 1996, will continue to control the
company’s day-to-day operations while US LBM will use its national platform
and marketing skills to continue to grow and improve the business.
Visit www.uslbm.com to learn more. n
In today’s complex world
at least one thing is plain and simple.
At Cersosimo we provide you with the
largest and most consistent supply of
quality Eastern White Pine and
hardwood – from the heart of New
England forests. We’ve been doing it
for over 75 years. You’ve come to count
on us to be there and deliver the best –
and do it consistently.
It’s straight talk from folks who are
easy to talk to, who know the business
inside and out – and whose integrity
is as solid as the lumber we provide.
www.cersosimolumber.com
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