Lumberyard Business Outlook: Quarter-Over-Quarter Change

Principia’s latest sentiment dashboard explores the opinions of lumberyards and their business outlook for the next 12 months.

Lumberyards anticipate their revenue to grow over the next year.

A significant percentage of lumberyards continue to believe their company’s revenues in the next 12 months will exceed the levels recorded in the previous 12 months. This sentiment is virtually unchanged from Q4 2024 to Q1 2025.

More lumberyards report price increases are negatively impacting their business.

Quarter-over-quarter, there is a sharp uptick in the number of lumberyards reporting price increases having a negative impact on their business. This metric has increased 13% from Q4 2024 to Q1 2025.

One-third of lumberyards expect residential new construction to slow in the next 12 months.

The level of agreement for the lumberyards expecting a downturn in residential new construction has stayed flat from Q4 2024 to Q1 2025. However, this statistic is significant at nearly one-third (31%).

While the negative affect of price increases appears to be increasing, lumberyards generally remain optimistic about their future revenues and the outlook for residential new construction.