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Annapolis Valley lumber mill owners say demand for wood is high even as prices soar
Family has been selling wood in Gaspereau since 1940s
Ashley Thompson · Assistant Managing Editor, SaltWire Weeklies | Posted: April 29, 2021, 8:40 a.m. | Updated: April 29, 2021, 11:40 a.m. | 7 Min Read
Gary Levy started doing odd jobs at his family's lumber mill along the Gaspereau River Road when he was just a boy. – Ashley Thompson
Four generations of Levys have carved out a living from a family-owned lumber mill in Melanson.
"We have because we like to work," said Garth Levy, a co-owner.
His son, Gary Levy, said his father works 70 hours a week at 70 years old. Gary's mother, Susan Levy, works in the office.
In many ways, the business has not strayed far from its roots.
"We still believe a handshake goes a long way," said Gary.
Susan likens it to a small corner store where people drop in to chat about this, that and the other thing. The business has long been a mainstay along the Gaspereau River Road, a rural route winding between the Town of Wolfville and nearby South Mountain communities.
"It's a rather old-fashioned atmosphere in a way. People are used to coming here because we've been here so long, and they've grown up with it," she said.
"There's a lot of people that come because they enjoy the ambience that's here, so that's the nice part of it as well."
It's not uncommon for someone heading to Levy's for lumber to stay for the company long after the official business is handled.
"It's personal," said Gary. "We love being able to work outside and work with what nature has produced for us to be able to build somebody a home, and being able to talk to every single person that comes in."
Farmers will drop in for sawdust shavings and turn to Levy's for their lumber needs. Area residents prepping for a bonfire know where to find some kindling. Parents often bring their young children to cast a line for the first time in the pristine brook that flows past the mill, where it's easy to spot fish in the water on a clear sunny day.
"We all have to help each other," said Gary.
S. G. Levy & Sons Lumber Mill co-owner Gary Levy said the rising price of lumber isn't slowing down business one bit. In fact, the Annapolis Valley operation is noticing an influx in orders as a number of factors continue to drive up the demand for lumber. – Ashley Thompson
Spike in demand and pricing
The business built on a foundation of quality products and friendly service has weathered ups and downs since the inception of S. G. Levy & Sons Lumber Mill in 1948.
But they've never experienced anything quite like this.
"It's got extremely busy and prices are extremely expensive," said Gary.
"…It keeps us busy and it means that some people have to wait for their material because we don't have it on hand."
Do-it-yourself builders tackling home renovations, crafting garden boxes or building sheds quickly came out of the woodwork as the pandemic put a pin in travel plans and public outings.
"We've sold a substantial amount of hemlock and whatnot for garden boxes," said Garth.
The surge in demand linked to the building boom in the United States is also impacting the softwood supply closer to home.
"The American economy was bad there for a while, but it's come back and there's a lot of material going there, although we don't ship down there," said Garth.
"But when the bigger mills are pushing down there… it helps us out, too."
The result has been an influx in orders at Levy's, a mill that saws about 8,000 to 10,000 board feet a day at its Annapolis Valley-based operation predominantly serving consumers from Halifax to Digby.
"It's a horrible storm for some people and a perfect storm for others," said Gary.
Garth agrees that the drastic price increases noted since the onset of the pandemic happened at an unusually accelerated pace, but he said the current pricing is more in line with what it costs to acquire logs, run a sawmill and make deliveries than it has been for years.
"The price of lumber now is only what it should be," he said. "It's just gone up too fast."
Garth estimated that someone building a $250,000 home two years ago may have spent up to $15,000 on lumber. The price has more than doubled since then.
"The price on a two-by-four last year was about the same as it was ten years ago. The value of lumber never came up along with the value of everything else," Gary added.
Annapolis Valley farmers often turn to S. G. Levy & Sons for bedding for their animals. – Ashley Thompson
Builders follow the bouncing ball
Keir Hood, vice-president of the Nova Scotia Home Builders' Association and operations manager for Cresco, said the construction industry is dealing with a mix of supply shortages and soaring pricing. He pointed to softwood products as a key area of concern.
"The biggest driver that I'm aware of is that the U.S. market is just so dominant compared to Canada," he said.
"…What caused the pricing was the demand, and the demand went through the roof last summer."
Hood said individuals with stable jobs throughout the pandemic opted to start building or renovating when travel and extracurricular activities were majorly disrupted by restrictions in place to quell the spread of the COVID-19 virus.
He said the price of a standard two-by-four beam used for framing houses has gone from about $3.35 to roughly $8, and forecasts suggest that there will be more increases in the future.
"We are still being told to expect up to a 30 per cent increase coming on softwood lumber by the end of this year," said Hood, noting that this would put prices at about 2.5 times what they were 10 months ago.
It's can be difficult to nail down quotes for framing houses in the current market conditions, he said.
"Every builder out there is being hit by these increases now… we're trying to keep up with the bouncing ball that is the lumber pricing."
S. G. Levy & Sons Lumber Mill is a supplier of spruce, white pine, red pine, hemlock and poplar. – Ashley Thompson
Hot housing market
Still, there is the other side of the coin that comes with undeniable benefits.
"On the one hand we're being hurt by some of the material prices and, on the other hand, we're being helped by some of the multiple bids that are coming in on houses," said Hood.
Builders are receiving offers above the asking price for new houses that haven't even been started yet, Hood said.
"The new construction industry has never seen this before."
The demand for new houses in Nova Scotia is such that land cleared for development – both literally and on paper – is a hot commodity.
"Developed land is at a real premium right now," said Hood.
"…The market is screaming for more houses."
Hood anticipates that the construction season will prove interesting as builders grapple with price increases for supplies and trades services while trying to secure the resources necessary to make the most of the demand for new housing.
"It's a very, very challenging time right now but it's a challenging time in which you do not have to worry about your houses not selling," said Hood.
"Everything is selling."
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