Daily Business Report: Wednesday, June 2, 2021
Visualizing the Recent Explosion in Lumber Prices
Lumber is an important commodity used in construction, and refers to wood that has been processed into beams or planks.
Fluctuations in its price, which is typically quoted in USD/1,000 board feet (bd ft), can significantly affect the housing industry and in turn, influence the broader U.S. economy.
To understand the impact that lumber prices can have, we’ve visualized the number of homes that can be built with $50,000 worth of lumber, one year apart.
In just one year, the price of lumber has increased 377 percent — reaching a record high of $1,635 per 1,000 bd ft. For context, lumber has historically fluctuated between $200 to $400.
Shortened Supply
U.S. lumber supplies came under pressure in April 2017, when the Trump administration raised tariffs on Canadian lumber. Since then, lumber imports have fallen and prices have experienced significant volatility.
After a brief stint above $600 in April 2018, lumber quickly tumbled down to sub $250 levels, causing a number of sawmills to shut down. The resulting decreases in production capacity (supply) were estimated to be around 3 billion board feet.
Once COVID-19 emerged, labor shortages cut production even further, making the lumber market incredibly sensitive to demand shocks. The U.S. government has since reduced its tariffs on Canadian lumber, but these measures appear to be an example of too little, too late.
Pent-up Demand
Against expectations, COVID-19 has led to a significant boom in housing markets, greatly increasing the need for lumber.
Construction boom is coming despite
skyrocketing material prices
CBRE sees a boom in commercial construction in 2021. Citing Dodge Data & Analytics, it says projects costing more than $50 million each will increase by at least 40 percent year-over-year for total completions of 430 million square feet. Multifamily projects make up most of these projected projects at around 45 percent or 194 million square feet. Warehouse projects are following at 36 percent or 158 million square feet. Office projects constitute 17 percent of the pipeline, while retail projects are just under 2 percent.
California Supreme Court to hear arguments
challenging state’s application of the death penalty
The death penalty in California could be on the precipice of a dramatic change.
On Wednesday, the California Supreme Court will begin hearings in a case challenging the state’s application of the death penalty. The state’s highest court will consider whether to raise the bar for when a jury can sentence a defendant to capital punishment, a decision that could affect pending cases and potentially reverse death sentences for the 704 inmates already on California’s Death Row. It’s a move supported by Gov. Gavin Newsom, who in October took the unprecedented step of filing a brief urging the state Supreme Court to change how California applies the death penalty, arguing the current process is “infected by racism.”
The landmark hearing follows Newsom’s Friday executive order mandating an independent investigation into the case of Death Row inmate Kevin Cooper, who was convicted in 1985 of a quadruple murder but continues to maintain his innocence. Also Friday, Newsom granted 14 pardons, 13 commutations and eight medical reprieves, including pardons for two inmate firefighters who were facing deportation.
City College to celebrate opening
of its new Early Education Center
San Diego City College (SDCC) will celebrate the opening of its new Early Education Center on Thursday at 3 p.m. with a ceremonial ribbon cutting at 16th Street and Russ Boulevard. This marks the final construction project at City College, which is part of the San Diego Community College District’s (SDCCD) $1.555 billion Propositions S and N construction bond program. The 10,000-square-foot facility includes child development classrooms, faculty offices and conference room, and a 14,000-square-foot playground space.
Mitek acquires ID R&D to lead fight
against biometric identity fraud
San Diego-based Mitek, a leader in digital identity verification, announced that it has acquired ID R&D, an award-winning provider of artificial intelligence (AI)-based voice and face biometrics and liveness detection. Shareholders of ID R&D will be entitled to receive up to $49 million in Mitek stock and cash as consideration.
According to Mitek, ID R&D’s pioneering facial and voice biometric capabilities provide increased protection against today’s most sophisticated identity theft and increasingly dangerous fraud techniques, such as deepfakes and synthetic voice augmentation. These technologies ensure the highest level of security against evolving threats and deliver an imperceptible consumer experience.
Cordoba Corporation to partner with Chicano
Federation to provide construction management services
Cordoba Corporation will provide project management services for the Chicano Federation’s Hawthorn 1 Rehabilitation Project, which involves upgrading and modernizing a 14-unit affordable housing complex in the Golden Hill community of San Diego.
The project will include replacement of stairs and walkways; replacement of deck and stair rail; window retrofit; roof replacement including insulation and roof gutters; ADA living unit upgrade; and solar water heater installation. Project work will start in June 2021 and will continue through 2023.
Hawthorne 1 is one of nine affordable housing assets owned and operated by Chicano Federation.
Cordoba Corporation is an engineering, construction management and program management firm specializing in the education and facilities, transportation, energy, and water sectors. It has more than 200 employees based at its 38,000-square-foot office in Kearny Mesa.
Illumina supports nationwide program across
Belgium to assess genome sequencing
Illumina Inc.announced an agreement with the Belgian Genetic Centers to evaluate whole-genome sequencing (WGS) for the diagnosis of patients with intellectual disabilities and/or developmental disorders in routine care. The study, run by the Belgian Resolve Rare Diseases group, will also assess the health economic impact of WGS versus current standards of care.
BeSolveRD will recruit 800 pediatric patients (neonates, children or adolescents) with ID/DD, plus their parents, from all eight Belgian Genetic Centers. Half of the patients and their parents will be randomly assigned to WGS, the other half will be given standard of care. Illumina is supporting the study by providing sequencing reagents. Results from the study will inform reimbursement decisions regarding the use of WGS in routine clinical practice.
Researchers create new CRISPR tools
to help contain mosquito disease transmission
Scientists have developed a toolkit that helps pave the way to a gene drive designed to stop Culex mosquitoes from spreading disease. Culex mosquitoes spread devastating afflictions stemming from West Nile virus, Japanese encephalitis virus and the pathogen causing avian malaria.
Since the onset of the CRISPR genetic editing revolution, scientists have been working to leverage the technology in the development of gene drives that target pathogen-spreading mosquitoes such as Anopheles and Aedes species, which spread malaria, dengue and other life-threatening diseases.
FDA approves ozanimod for ulcerative colitis
Ozanimod, the drug invented at Scripps Research that won FDA approval last year for relapsing forms of multiple sclerosis, has been approved in the United States for a second high-need medical condition, ulcerative colitis.
The once-daily oral drug, sold by Bristol Myers Squibbunder the name Zeposia, can now be prescribed to treat adults with moderate to severe forms of the inflammatory bowel disease. Notably, it’s the first drug in a novel class of immune-modulating compounds to be approved for ulcerative colitis, which affects about 1 million people in the United States.
“For patients with ulcerative colitis, this oral drug offers a better and more convenient option to control disease progression and improve quality of life,” said Hugh Rosen, M.D., who invented ozanimod along with fellow Scripps Research professor Edward Roberts, and their laboratory colleagues.
