t the global lumber economy looked like in 2021. Key
search words might include “lumber industry,” “shortage,” and “lumber crisis.”
Find and link two websites with different viewpoints, such as a news source,
someone from the lumber industry, a construction worker, or a government
official. Write a short paragraph that describes the crisis, including what happened,
who profited from the shortage, who was hurt by the shortage, and how they were
hurt. Then evaluate your information critically. In a short paragraph, describe the
differences between how the shortage is reported on both of the links you found.
Finally, describe why those differences exist.
Website 1: News Source Perspective
Title: Bloomberg - "Global Lumber Supply Crisis Sparks Building Boom Fears"
Link: https://www.bloomberg.com/news/articles/2021-05-03/global-lumber-supply-crisis-sparks-building-boom-fears
According to Bloomberg, the global lumber industry faced a severe shortage in 2021. The COVID-19 pandemic led to disruptions in production and supply chains, causing a surge in demand for lumber as people spent more time working on home improvements or constructing new houses. This led to skyrocketing prices in the lumber market, with futures hitting record highs in May 2021. The shortage and price hikes became detrimental to construction companies, as they had to absorb the additional costs or pass them on to the consumers, resulting in delays and rising housing prices. Meanwhile, large lumber producers and traders experienced significant profits from the shortage.
Website 2: Lumber Industry Perspective
Title: National Association of Home Builders - "NAHB Analysis: Lumber Price Surge Boosts New Home Prices by $36,000"
Link: https://www.nahb.org/news-and-economics/industry-news/press-releases/2021/06/nahb-analysis-lumber-price-surge-boosts-new-home-prices-by-$36,000
According to the National Association of Home Builders (NAHB), the lumber shortage and subsequent price surge in 2021 had a profound impact on the housing market. They claim that the increased lumber prices added approximately $36,000 to the price of an average new single-family home. The NAHB emphasized that the shortage harmed both home builders and potential homebuyers. Construction companies faced financial strain due to the skyrocketing prices, leading to project delays and inflated construction costs. As a result, homebuyers faced increased prices for new homes, making homeownership less affordable for many.
Differences in reporting:
The Bloomberg article focuses on the overall impact of the lumber shortage on construction companies and the broader building industry. It highlights the profits gained by large lumber producers and traders, while also mentioning the negative effects on construction companies and consumers.
The NAHB analysis, on the other hand, specifically emphasizes the adverse effects on the housing market. It highlights the substantial increase in new home prices, correlating it directly with the surge in lumber prices. The NAHB report is more industry-specific and portrays a more targeted perspective on the situation.
Reasons for differences:
The differences in reporting can be attributed to the type of sources and their vested interests. Bloomberg is a news source that aims to provide a balanced overview of the situation from various angles. They include the perspective of construction companies, consumers, and industry players. However, they also focus on the financial aspect and potential concerns regarding an impending building boom.
The National Association of Home Builders, as a representative organization for home builders, naturally emphasizes the impact on the housing market and the specific challenges faced by its members. Their primary objective is to advocate for the best interests of home builders and protect the affordability of homes for consumers. Consequently, their analysis focuses specifically on the housing market's negative effects and the staggering increase in new home prices due to the lumber shortage.
Write a paragraph describing the crisis that includes what happened, who was
affected, and how they were affected:
During 2021, the global lumber industry faced a significant crisis due to a shortage in supply. The outbreak of the COVID-19 pandemic caused disruptions in production and supply chains, leading to a surge in demand for lumber. As people spent more time at home, home improvement projects and new construction boomed. However, the shortage resulted in skyrocketing prices in the lumber market, causing significant challenges for construction companies, builders, and homebuyers. Construction companies, already dealing with pandemic-related difficulties, had to absorb the additional costs of lumber or pass them on to consumers. This led to delayed projects, inflated construction costs, and a decrease in profitability. Homebuyers also felt the impact, as the increased prices for lumber added thousands of dollars to the cost of new homes, making homeownership less affordable and exacerbating the housing affordability crisis.
Describe the differences between the two sources you found and linked
The two sources, Bloomberg and the National Association of Home Builders (NAHB), provide different perspectives on the lumber shortage crisis in 2021. While both discuss the impact on the industry and consumers, they differ in focus and detail.
Bloomberg's article takes a more broad and balanced approach, examining the overall effects of the shortage. It highlights the profits gained by large lumber producers and traders, acknowledging the negative impacts on construction companies and consumers. The article also raises concerns about a potential building boom and the implications it may have for the industry.
On the other hand, the NAHB's analysis is more specific to the housing market. It focuses on the skyrocketing prices of lumber and how it directly contributed to a staggering increase in the cost of new homes – estimated at around $36,000. The NAHB report emphasizes the impact on home builders and potential homebuyers, highlighting the financial strain on construction companies and the reduced affordability of new homes.
While both sources recognize the shortage's adverse consequences, Bloomberg provides a more comprehensive analysis of the situation, incorporating different perspectives, including the profitability of the lumber industry. Conversely, the NAHB narrows its focus to the housing market, specifically addressing the direct impact on homebuilders and homebuyers, and portraying the severity of the cost increase in new homes.
These differences in reporting can be attributed to the separate interests of each source. Bloomberg as a news outlet aims for a comprehensive overview of the crisis, considering multiple factors and stakeholders. The NAHB, as an organization representing home builders, emphasizes the impact on their constituency and strongly advocates for affordable housing.
Why do those differences exist?
The differences in reporting between Bloomberg and the NAHB can be attributed to the varying perspectives, interests, and priorities of each source.
Bloomberg, as a news source, strives to present a balanced and comprehensive view of the situation. Their goal is to provide readers with a nuanced understanding by including multiple perspectives and considering various factors involved in the lumber shortage crisis. As a result, their reporting incorporates the perspectives of construction companies, consumers, industry players, and potential concerns about a building boom. Their broader approach reflects their objective of presenting a well-rounded analysis of the market.
On the other hand, the NAHB represents the interests of home builders and developers. Their primary focus is advocating for their members' well-being and protecting the affordability of homes for consumers. Thus, their analysis hones in on the specific impacts on the housing market, highlighting the dramatic increase in home prices due to the surge in lumber prices. The NAHB report aims to draw attention to the challenges faced by home builders and the potential consequences for aspiring homeowners, with the goal of influencing policy and ensuring affordable housing remains a priority.
Overall, the differences in reporting stem from the distinct objectives and perspectives of each source. While Bloomberg seeks to provide a holistic view, the NAHB prioritizes the interests of home builders and affordability for homebuyers in their reporting.