What has happened to OSB?

Page 2 of 3  
I sell framing lumber for a living and trust me...you're not the only one asking questions. What I've been told and am telling my customers is this: In the 90's, an abundance of mills were opened to manufacture OSB. OSB is considered an engineered product and is a major component of many other engineered products. With building nationwide at a decline many of the mills started shutting down or focusing on these other engineered products such as I-Joists or Smart Side. This brought the supply down. Having just gotten out of hurricane season, forest fires in California and one of the most active tornado seasons in history, coupled with a surge in building due to lower interest rates etc. the demand far exceeded production. Add into the equation the mandatory EPA inspections and new compliance laws and the annual winter maintenance which requires the shut-down of operations and you have what you have now. Outrageously priced OSB at over $500 msf. There is a bright side to all of this. This week OSB dropped over $140 and the feeling is it will continue to plummet. With prices at a premium the mills have been jumping through their asses to get in on it however this ultimately causes an abundance so the supply will exceed the demand and you may see OSB cheaper than ever for a short while. Then they will back off production to bring the price back up and so on and so on till it levels out at a price where everyone is happy again. Inflation is ultimately controlled by the consumer...NOT THE GOVERNMENT. I had to throw that in. Now I'll be ducking all sorts of comments. Just to add to the fire I'll toss this in too..... It's not the government's job to eliminate the needs for restraint and discipline. I see all sorts of people building 500k to a million dollar homes griping about how much it costs. If you use too much of it there will be a shortage... simple as that.
Laying low till this blows over, Mel
--
"If you are arrogant, who's going to care if you're the best?"



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Good post ...but:
In a model capitalistic society, maybe .. but tell that to the drug companies, where the cost of the most popular new drugs are amazingly within a few cents of each other, regardless of manufacturer. AND, as you mentioned, add the cost of government regulation into the equation. Suddenly your statement below is not as black and white as you would like.
--
www.e-woodshop.net
Last update: 9/21/03
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
No doubt, medical costs have grown at rediculous rates... But that is a bit of a bad example because the medical industry is not a capitalist system.
Normally, in a capitalist system, when demand goes up, price goes up, until demand is curbed by the price.
In the medical "economy" the people demanding the product (Sick people), are not the same people as the ones paying for the product (insurance companies, for the most part).
<rant-on> Throw in a dose of "no expense incurred by the insurance company/goverment is too high to keep my dying loved one, with no quality of life alive to xxx more days" and it gets worse.
Doing a cost-to-benefit analysis of health care procedures and drawing some very unpopular lines in the sand is the only thing that will stop spiraling health costs. <rant-off>

within
Suddenly
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
"Stephen M" wrote in message

bit
If you go back and read what I said, you will see that was the precisley my point ... you just further reinforced my taking exception to the statement "Inflation is ultimately controlled by the consumer...NOT THE GOVERNMENT."
--
www.e-woodshop.net
Last update: 9/21/03
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

system.
my
It took a couple re-reads, but I with you.
Yes, I agree
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
More likely due to my inability to get my point across without writing an epistle.
I just can't believe what I perceive as a steady rise in prices in everyday items, in some cases dramatic, and no one in the media or government is even remarking upon the fact. I am not advocating that "they", or government, do something about it, but it is strange to me that it is below a radar that is more concerned with Pedersen, Jackson, and Paris Hilton's love life.
OBWW - Is there not a fairly large increase in prices of Delta's big ticket woodworking tools in the past year?
--
www.e-woodshop.net
Last update: 9/21/03
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Swingman writes:

Some of the following may be my reading habits, which tend strongly away from economics and finance. Until a week or so ago, I'd never seen a mention about the pace of inflation in earlier eras...then someone, somewhere popped a short article on inflation being almost unknown before 1940 or so.
Amazing, these modern inventions.
Charlie Self
"In the final choice a soldier's pack is not so heavy as a prisoner's chains." Dwight D. Eisenhower
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 12-Dec-2003, snipped-for-privacy@aol.comnotforme (Charlie Self) wrote:

Said article must have been written by someone with absolutely no knowledge of economic history.
Mike
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@aol.comnotforme (Charlie Self) wrote in

Not all that modern -- Europe suffered from serious inflation in the 17th century:
http://www.ucalgary.ca/applied_history/tutor/migrations/three4d.html
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Murray Peterson writes:

What the hell. We're always asking for recycling. It would be nice if today's inflation slowed down for a similar period of time.
Charlie Self
"In the final choice a soldier's pack is not so heavy as a prisoner's chains." Dwight D. Eisenhower
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@aol.comnotforme (Charlie Self) wrote in

Europe (or the world) hasn't been inflation free for all that time. Inflation is just the result of too much money chasing after too few goods/services, and one historical cause of too much money is a war. During a war, a government spends far more money than the economy can support, with the resulting inflation in prices.
In terms of an individual commodity, there can be many reasons why its prices have skyrocketed. In the case of OSB, perhaps the US tariff on imported Canadian softwood is partly responsible?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
What most Americans have not noticed unless they are involved in import/export or currencies, is that the US Dollar has lost a lot of its value - over 20% compared to the Canadian Dollar and more against the Euro.
While much of the merchandise in the stores is imported or based on an International price (such as OSB) your purchasing power has dropped. Everything is going to cost more.
Yes, the law of supply and demand comes into play, but it is the International Law of Supply and Demand. The massive costs of Iraq have drained the US economy and lowered the purchasing power of the US Dollar.

everyday
even
do
is
ticket
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Eric Tonks wrote:

But does ant of this really matter as Haliburton is doing well.
--
Mark

N.E. Ohio
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Eric Tonks wrote:

I do, because I listen to the BBC World Service almost every night. It's been dropping like a stone. What, those ridiculous looking ? flummies are worth more than $1.20 I think. I can't remember what it's gotten up to. $1.27? $1.30?
I did a silly little thing with a friend in Finland a few years ago. I bought 10 ? for $10, then threw in a $2 bill for the hell of it, so he would have what might be the only US $2 bill in Finland. $12 for 10 ?... I figured I was getting screwed.
I never imagined I would break even, let alone profit. Hell, this stuff looks like Monopoly money.
--
Michael McIntyre ---- Silvan < snipped-for-privacy@users.sourceforge.net>
Linux fanatic, and certified Geek; registered Linux user #243621
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
"Perceived need" is merely a motivating factor that causes the consumer to "buy". I would go as far to say you've proven my point in your effort to disprove it. I'll concur that the medical industry needs "guidance" but what it really needs is competition....not governmental intervention. The original post was concerning OSB. A commodity item with a market value determined by good ol' supply and demand. An item at a totally different end of the spectrum from say cancer treatment. Rather than leap to an extreme focus on the middle ground. Rather than throw out a label of "capitalism" understand that the less of something there is to go around the more it cost. To that point medicine is a perfect example. What does said cancer treatment cost versus ibuprofen? What is the cost of production versus the consumption ratio of both drugs? Granted my statement of "restraint and discipline" doesn't apply to this end of the spectrum.....but it does apply to most of it.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
What you don't seem to understand is that you're saying the same thing I am, and you were agreeing with me. ;>)
My first phrase was:
"In a model capitalistic society, maybe .."
IOW, this ain't a "model capitalistic society" we're talking about.
I could not agree more with what you say below.
--
www.e-woodshop.net
Last update: 9/21/03.
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
my apologies, I jumped to the conclusion you were attempting to undermine my statement by taking an extremist view. A pet peeve of mine.
--
"If you are arrogant, who's going to care if you're the best?"



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
My fault entirely, not yours ... it didn't quite come out as I intended.
--
www.e-woodshop.net
Last update: 9/21/03
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Stephen M wrote:

What the hell, make'em into Soylent Green.
--
Michael McIntyre ---- Silvan < snipped-for-privacy@users.sourceforge.net>
Linux fanatic, and certified Geek; registered Linux user #243621
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Swingman wrote:

OTOH when was the last time you needed OSB to keep your blood pressure under control, to fight an infection, or to keep your head in one piece? When was the last time a piece of OSB made you go into convulsions or made your stool runny?
I think you may be comparing different things.
--
Mark

N.E. Ohio
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Site Timeline

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.