Addressing rising lumber prices

In recent months the price of softwood lumber has skyrocketed more than 30 percent, adding pressure to a building market already challenged by labor productivity issues and cost overruns. Builders face a difficult choice: pass the added costs onto customers, cut costs by choosing lower quality materials and/or reducing product offerings, delay projects indefinitely while monitoring prices, or cancel projects altogether.

The unprecedented rise in construction materials costs, including softwood lumber, steel and concrete, due in large part to new import tariffs, underscores how conventional buying of building materials leaves developers exposed to unnecessary risk. Katerra’s innovative, end-to-end construction process, which offers a fixed price per project for materials in advance, provides developers increased project certainty and competitiveness.