April Monthly Update
SUPPLY CHAIN, PRICING, PRODUCT UPDATES:
In our March product line update, many of the lead time and price changes we highlighted were brought on by the sharp uptick in new construction. This, coupled with the pandemic and resulting delivery constraints, has resulted in significant supply chain challenges.
Resin is a key ingredient for many building products, especially those made with vinyl. Last summer, Hurricane Laura impacted resin capacity. The freezing weather in Texas this winter essentially shut down US production of resin for weeks. Manufacturers are still attempting to restore their ‘pre-freeze’ capacity. This shortage has had a large impact on vinyl window prices and also on a few other product lines.
In addition, little did we realize that the Suez Canal had such a large impact on world logistics. Delivery expense and delays have also increased.
Our purpose in this monthly update is to keep you informed of the many changes we are together experiencing in our supply chain for building products you require on your projects. Please continue to stay in touch with your sales rep as you plan your projects. Thank you for your perseverance and partnership.
CABINETS:
Lead Times:
- Gallery lead times have extended to 6 – 7 weeks.
- Omega / Dynasty lead times have extended to 6 – 8 weeks.
- Legacy lead times have extended to 4 – 5 weeks.
- Timberlake lead times have extended to 4 – 5 weeks.
- Quality Cabinets lead times have extended to 3 – 4 weeks.
- Aristokraft lead times have extended to 2 – 3 weeks
DECKING & ACCESSORIES:
Price Increases:
- Fiberon has announced a 5.5% price increase effective on April 1st.
- RDI Vinyl Railing has announced a 6-8% increase effective May 1st, all related to the resin issues.
MILLWORK:
Price Increases:
- HB&G has announced a price increase on all non-wood products of 7% and all wood products of 15% effective March 29th.
- BWI has announced a 7% price increase on interior doors effective June 1st.
- Reeb has announced a 5.5% increase on interior doors effective June 1st.
WINDOWS & DOORS:
Price Increases & Lead Times:
- Ply Gem has announced an 8% price increase effective on April 22nd and a 6% price increase effective May 17th due to cost increases of PVC resin and aluminum. Ply Gem continues to have extended lead times.1500 Series Single Hung are 26 weeks, and the Pro Classic Double Hung are 8 weeks.
- Simonton has announced a 6% price increase effective on April 22nd and a 5% price increase effective on May 17th due to cost increases of PVC resin and aluminum. Simonton’s lead times are between 6-8 weeks on new construction and 2 weeks on replacement.
- Silver Line has announced an 8% increase effective on April 22nd and a 6% price increase on May 17th due to cost increases of PVC resin and aluminum. Silver Line lead times are 6 weeks on single hung and 2 weeks on double hung.
- Atrium has announced an 8% price increase effective on April 22nd and a 5% price increase effective on May 17th due to cost increases of PVC resin and aluminum. Atrium lead times are 4-8 weeks.
- 7-D Windows lead times have reduced to 3 weeks.
- Reeb has announced a 6.5% increase on Therma-Tru doors effective June 1st. Extended lead times are anticipated due to the resin issues mentioned above.
- BWI has announced a 10% price increase on Masonite exterior doors effective June 1st. Potential for extended lead times related to the resin issues are possible with Masonite later in the year.
GARAGE DOORS:
Lead Times: 8-12 weeks depending on style and color selection. Special orders are out 13-18 weeks. Please plan accordingly.
LUMBER:
Lumber has been climbing at a pace and to a place we have never seen before. Prices increased by approximately 7% in the month of March. We have been able to secure sufficient quantities of lumber to meet your needs, but not in excess.
Prices did show a sign of weakness until this week. Due to the sales pace, indications of a plateau or correction disappeared. Canadian consumption increased to keep upward pressure on the already lagging supply chain. Please stay in touch with your salesperson over the next few weeks.
All of us are wondering, can it continue, will it continue, or are we finally at the top with the possibility of a correction. Supply is lagging demand and it does not appear that the demand is going to let up any time soon. The mills do not have the capacity to increase production. Add to that the potential shipping issues with rail and trucks and a pretty good argument could be made that prices are not going to come off in the short term. On the other hand, when does the price become the controlling factor in the decision-making process for building more homes?
PANELS:
- There are supply issues across the U.S. in all commodity panels. The latest figures show that the market is under produced by about 500 million feet compared to the demand caused by new house starts and remodeling.
- The shortage of MDI resin used in enhanced sub floor products along with mill shutdowns has added to the short fall.
- Domestic plywood mills, both fir and YP, are dealing with the same supply problems.
- Huber AdvanTech has curtailed capacity due to the lack of resin. When necessary, we try diligently to secure alternative products where AdvanTech is required. OSB is also in limited supply. We believe our contracted volumes for OSB will enable us to meet your project needs. Please advise us of any large home or multi-family projects in advance.
- In March, the increase in panel costs was approximately 8% on OSB and 14% on plywood. At month end, the demand has resulted in a continuing upward trend.
ROOFING:
Price Increases & Lead Times:
- GAF has announced a 5-7% price increase effective April 5th. Supply continues to be very limited.
- TAMKO has announced a 6-9% price increase effective March 29th. Myers will have a full line of TAMKO Heritage and TAMKO XT’s in stock by mid-April.
- WeatherBond EPDM has announced a 5% price increase effective March 29th.
SIDING:
Price Increases & Lead Times:
CertainTeed has announced a price increase of 10% effective on shipments after May 3rd. They have also suspended the availability of some dark colors in their normal offering. Check with your Myers salesperson for clarification on the availability of your color selection.
All CertainTeed products are on allocation and we are experiencing extended lead times. We are currently out to the second week of May with orders.
LP EWP:
Price Increases & Lead Times:
LP EWP has announced a 28% price increase on I-Joists and an 8% increase on LVL’s effective April 1st. (Other major suppliers of EWP have announced comparable price increases.) EWP capacity generally is much less than post pandemic demand. This product line is also impacted by the resin shortage. Our supply partner for LP EWP has retained our normal lead times for these products.
HARDWARE:
Price Increases & Lead Times: Prices for steel have gone up over 50% recently and many manufacturers of fasteners have experienced extended lead times.
- Fasteners will see a price increase of approximately 10-15% effective April 5th.
- Simpson Strong-Tie has announced a price increase between 9-11% effective April 5th.