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In the past two years, "Neijuan" has become a popular internet buzzword that can no longer be popular. Work, education, and life are everywhere. Even the traditional timber industry has extremely serious involution.

Involution generally stems from lack of resources and desire but surplus. The essence of involution lies in the scarcity of resources. At present, there is a global shortage of timber, especially North American timber, which is very popular in China. It can be said that a single piece of wood is hard to find.

Since August last year, due to factors such as the new crown epidemic, severe weather, the US welfare increase plan, the recovery of the domestic housing market, and the improvement of the epidemic in China, the output of sawmills has always been difficult to achieve breakthrough growth, and the shortage of supply continues to exist.

In terms of manifestation, "involution" means that individuals need to make more efforts to compete for limited resources, which leads to a phenomenon in which the individual's "revenue-to-effort ratio" declines. We can regard this phenomenon as "inflation" of effort. .

In the lumber circle, many furniture manufacturers and woodworking factory owners gave workers holidays, and the couple went to the production line personally, just to reduce costs and purchase more wood. However, the continuously high prices still make them in a dilemma. Not only did some small and medium-sized enterprises fail to compete for resources, they were forced to close down at a loss.

The essence of "involution" is anxiety, and this round of market has indeed made downstream dealers anxious. According to data from China's Timber Market Price Index (TPI): In April 2021, China's Timber Market Price Index was 121.6, up 1.1% month-on-month and 11.3% year-on-year.

Among them, log prices rose 0.1% month-on-month and 9.7% year-on-year; sawn timber prices rose 4.3% month-on-month and 10.0% year-on-year; imported timber prices rose 0.1% month-on-month and 13.8% year-on-year.

What does the rising wood prices mean? Orders come and cannot be received. Is the rising cost still profitable? Is the risk of receiving too much?

If you don’t pick it up, the old customer resources accumulated over the years are likely to be unretainable, and even word-of-mouth problems will occur. Isn’t it a waste of money? Anxiety is increasing and choices are getting harder and harder.

How can I not be rolled? The economist He Fan said: When you exceed a certain threshold, it may be that the scarcity of resources may force people to break through this boundary.

For furniture manufacturers, in addition to improving technology and reducing costs, they can also rely on the Internet to explore new procurement models. For example, we can purchase together with a number of companies, which can not only meet the demand for raw materials, but also greatly alleviate the financial pressure, and occupy a place in the fierce market competition.

As far as the industry is concerned, breaking the upstream and downstream communication barriers and striving to establish a two-way equal communication mechanism to achieve fairness, openness and transparency in the trading market will undoubtedly promote the stable and sustainable development of the timber market.