As we move into the busy spring season, we’re taking a look back at the major trends that shaped the building materials industry in the first quarter of 2025. From lumber and panels to hardware, millwork, and logistics, here’s what you need to know to plan ahead and keep your projects on track.

Lumber Market Trends

The start of 2025 has been anything but quiet in the lumber world. Canadian lumber tariffs are set to rise by over 20 percent later this year, which could add more than $6,000 per truckload. Southern Yellow Pine continues to shine as the value leader, thanks to its strong availability and ability to help fill supply gaps.

Treated lumber season has officially kicked off, with sales gaining momentum as winter fades and outdoor projects pick up, especially across the Northeast and Midwest.

Panels and Plywood

Severe winter weather slowed production and pushed up prices on Southern Yellow Pine plywood early in the year, but conditions are expected to stabilize as mills ramp back up. OSB prices dipped at the start of Q1 but have since rebounded, and with spring construction on the horizon, demand is expected to stay strong.

Housing Starts and Permits

The housing market showed mixed signals, with building permits down slightly but single-family housing starts jumping 11 percent from January to February. This suggests that while some projects were delayed, momentum is building as weather improves.

Hardware and Fasteners

New tariffs on steel, aluminum, and Chinese goods have driven hardware and fastener prices up, with increases ranging from 10 to 45 percent. While supply is still steady, continued monitoring is key as market volatility remains a challenge.

Millwork and Mouldings

Millwork products are feeling the ripple effects of tariffs, especially in the door category. However, window lead times remain reasonable, and moulding prices are flat or slightly down on most materials. Poplar is an exception, with prices expected to rise by about 10 percent.

Logistics and Trucking

The flatbed trucking market saw tightening in late Q1, especially in the Southeast and Midwest, with load-to-truck ratios rising sharply. Diesel and gasoline prices edged up but remain below the five-year average. As spring demand picks up, expect continued pressure on capacity and rates.

Building Materials and Commodities

Gypsum and steel studs have seen price increases, while roofing materials face allocation challenges and longer lead times due to granular shortages. Insulation continues to be available, though lead times vary, and tax credits through the Inflation Reduction Act may offer savings on select materials.

Looking Ahead to Q2

At Doug Ashy, we’re committed to helping contractors navigate a changing market with confidence. Our team is here to provide expert advice, timely updates, and the materials you need to keep projects moving forward.