We’re discussing supply chain disruptions in class right now and Hurricane Sandy has given us a tremendous number of articles to sort through. I think everyone understands that any company operating in New Jersey or with a significant supply chain presence there is fighting to get things running again. However, the lumber supply chain may be a big winner. When houses are rebuilt the demand for base lumber should skyrocket. Combine this spike in demand with low inventories and prices can only go up. Very interesting second-order effect of the storm.
Credit to Caitlin Moran, a Penn State/Smeal College of Business student, for bringing this article to my attention.