President Joe Biden on Thursday said Russian President Vladimir Putin’s invasion of Ukraine would cause a “complete rupture” of US-Russia relations if it continues.
Biden condemned Putin and his escalating invasion of Ukraine in a speech from the White House. Biden, who met with G7 members on Thursday morning, also announced a raft of new sanctions against Russia.
“What’s the risk that we are observing the beginning of another Cold War, and is there now a complete rupture in US-Russian relations?” a reporter asked Biden following his address.
The crisis unfolding between Ukraine and Russia is a humanitarian tragedy in the making. Yet, closer to home, the crisis can potentially change the demand for housing as consumers weigh the financial volatility and uncertainty.
Gas and Oil prices are fixed to spike further as the Russia-Ukraine problem escalates, but the impact on power won’t be an only ramification.
From barley to wheat and nickel to copper, analysts tell CNBC news that supply chains are set to be disrupted as the problem takes a turn for the worse.
The United States imports relatively little directly from Russia. Still, a commodities crunch caused by a conflict could have knock-on effects that at least temporarily drive up prices for raw materials of Millwork when the United States is experiencing rapid inflation.
Now let us discuss how the North American millwork industry will be affected by the Russia and Ukraine Cold war.
As you all know, this war will not end soon, and if it continues for long, this will create a huge impact not only on the lives of Russia and Ukraine but also on the world, especially North America.
Many businesses are affected by the war. One of them is Millwork.
North America Millwork Industry will face many problems Like:
Due to the war, the price of gasoline was getting higher. As there are many industries dependent on gas and if this will continue an average person will get most affected and the industries which are somehow attached to it.
Another effect of the war situation was the import and export of products. Ukraine is the primary producer of iron and steel to countries like the US, Canada, etc. As there is no chance that Russia will end the war with Ukraine, the import and export of steel and iron can impact the millwork industry to run the millwork industry. One should have well-equipped equipment to operate. And if this continues, the export of millwork equipment will be affected, and many small industries will need to close their market.
The transportation cost will also make an impact in the millwork industry. The evolution of transportation prices is one of the elements to be watched. As the cost of transport increases, the supply chain will get affected.
As home renovation and building soared amid pandemic lockdowns, the price of lumber rocketed from about $400 per thousand board feet in Feb 2020 to an all-time high of over $1,600 in earlier May. Prices have since dropped to the $800 range — still almost double their pre-pandemic rates — in what could potentially be the latest level for the near term.
The home construction and lumber industries’ misread of the economic crash, Covid-related rules on production, and a decade of under-building of new homes since the 2010 financial crisis, set the phase for undersupply as demand surged experts states.
Seeing the provisional economic decline due to the coronavirus outbreak and lockdowns and the cold war between Russia and Ukraine, lumber producers, like so many other manufacturers, took a page out of their recession playbook and cut back production took downtime.
The price jump was “a classic supply and demand imbalance” case that followed a “massive supply chain disruption” due to the war. “Never back in history have we had that sort of price appreciation so quickly,”
One side of the raised lumber prices is that job sites report higher materials theft levels.
So we can only predict and pray that the war between these two countries should end soon. However, if it is not finished, not on the business but also the lives of people in Ukraine and Russia will get affected, and to make the area a safe place again, both the countries have to work hard and make their lives blossom again.