June Monthly Update
SUPPLY CHAIN, PRICING, PRODUCT UPDATES:
May has been an interesting month for our supply chain. Lumber and panel prices through mid-May were up sharply, just as we experienced in April. Random length lumber prices however were flat the last two weeks of the month. Panel prices on the other hand continued to increase over the last two weeks, but at a slower pace. Overall, lumber and panel prices in May will end approximately 13% and 12% respectively higher than April month end levels. As we have shared in prior monthly updates, price inflation has been driven by strong demand for remodeling & new construction, cost increases for raw materials like resin and increased delivery expenses. The update below outlines this impact by product line.
Economists believe the “post pandemic” economy will continue to be strong. The overall, savings balances for the US population is at a multiple of where it stood pre pandemic. President Biden’s agenda will add considerable funds into our economy which will also fuel growth. The strength of the economy has generated a broad shortage for labor, which all of us are grappling with in leading our businesses. Our governmental leadership will wrestle with the extent to which unemployment incentives stymie labor availability.
There are some natural headwinds that may slow housing demand and help support an eventual ceiling for pricing. Large builders have been more disciplined about slowing their sales pace since they do not have sufficient products and labor. Their reduced pace is also influenced by affordability as home prices have grown to historical levels in many markets. April’s new home trends were up marginally in contrast with earlier year comparisons. When this results in a better balance between demand and supply, pricing will likely peak and may slowly retreat. With the present demand and shortages for products like panels and other products containing resins, price deflation is likely months in the future.
We draw your attention to the following product lines as you peruse this update: cabinet lead times from certain manufactures are out smartly, EWP manufacturers have announced material increases in pricing effective the end of June, prices for garage doors are also increasing materially, GAF has announced that will now only manufacture shingles in two colors, and TAMKO has broadened their color selections for both their Heritage and Titan XT lines.
We have heard from many of you that you find these updates helpful as you develop estimates for your projects and interact with your customers about inflation and availability. Please remain in touch with your Myers sales representative as we keep them informed about supply chain changes as they occur. Thanks for your partnership.
CABINETS:
Lead Times:
- Gallery lead times have extended to 12 – 18 weeks.
- Omega / Dynasty lead times have extended to 12 – 14 weeks.
- Legacy lead times have extended to 5 – 6 weeks.
- Timberlake lead times have extended to 6 – 8 weeks.
- Quality Cabinets lead times have extended to 5 – 6 weeks.
- Aristokraft lead times have extended to 3 – 4 weeks
DECKING & ACCESSORIES:
Price Increases: Trex has announced a price increase 8% on all products effective July 1st. The only exception is Enhance Natural, which will increase by only 1% effective July 1st.
MILLWORK:
Price Increases:
- Reeb has announced a 5.5% increase on interior doors effective June 1st.
- Metrie has announced an 8-10% increase on primed moldings & boards, a 6-8% increase on MDF moldings and a 3-5% price increase on all solid moldings effective June 1st.
- BWI has announced a 6% price increase on interior door slabs, a 7% increase on interior prehung door units, and a 10% price increase on all exterior prehung door units effective June 2nd.
WINDOWS & DOORS:
Price Increases & Lead Times:
- Andersen Window lead times on 100 Series is at 10 weeks, 200 Series is at 3 weeks, 400 Series is at 3 weeks, and A-Series is at 6 weeks. Patio door lead times on 100 Series is at 6 weeks, 200 Series is at 5-6 weeks, and folding doors are at 13-14 weeks.
- Marvin Doors and Windows lead times on Elevate Collection is at 8 weeks, Essential Collection is at 6 weeks, Signature Collection is 15-16 weeks.
- Ply Gem continues to have extended lead times. 1500 Series Single Hung are 33 weeks, and the Pro Classic Double Hung are 8 weeks.
- Simonton’s lead times are 10 weeks on new construction series and 5 weeks on replacement series.
- Silver Line lead times are 6 weeks on single hung and 2 weeks on double hung. They have also announced a Low-E LS glass discontinuation. Click HERE for additional details.
- Atrium lead times are 4 weeks on new construction double hung, 8 weeks on new construction single hung 150/160 Series, and 13 weeks on SH 130 Series.
- 7-D Windows lead times have reduced to 3 weeks. Contact your sales rep if should these lead times enable a quick turn project.
- Velux has announced a 4% price increase effective July 5th.
- 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.
- Larson Storm Doors has announced a 7% increase effective on June 1st. They are also experiencing extended lead times of 6 weeks on stock sizes and custom doors will be out 6-8 weeks.
- Shuster’s Building Components has announced a 10% price increase effective June 1st on all interior & exterior doors.
GARAGE DOORS:
Lead times are 10+ weeks depending on style and color selection. Special orders are out 12-16 weeks. Effective immediately Haas and CHI have announced a 20% price increase.
LUMBER:
As we described in the introduction above, lumber prices have continued to spike due primarily to the imbalance between demand and supply. We anticipate demand will continue to be strong into 2022. In general, these extreme imbalances prompt manufactures to increase output or consumers to wait for affordability to at least stabilize. Presently we are not aware of any increased capacity from lumber mills.
PANELS:
The market for OSB and Plywood is one of the tightest we are managing at present. Limited product availability is further stymied by the trucking shortage (Trucking has been running 4 weeks late). As we shared above, this has resulted in weekly price increases and product shortages. The underlayment OSB and Plywood are both extremely hard to find due to the resin issues, and with mill shutdowns scheduled for maintenance over the next few weeks, supply availability is not going to improve in the month of June.
INSULATION:
Knauf Insulation has announced an 8% price increase for June 30th. Insulation continues to be on allocation and supply issues will more than likely continued into the fall.
ROOFING:
Click HERE to read an insightful article from Roofing Contractor magazine
Price Increases & Lead Times:
- GAF has announced a 4-6% increase effective June 14th. Supply and color availability continue to be very limited. They have also announced several discontinuations:
- TAMKO – Myers has the full line of 13 colors of TAMKO Heritage shingles in stock and the full line of 6 colors of TAMKO Titan XT in stock. TAMKO announced this week that they are adding 4 new colors to its Titan XT line. Myers plans to stock all colors of these products when they become available.
- Central State Roofing has been experiencing shortages in metal products & extended lead times on some orders. Check with your rep for current lead times.
- Lomanco has announced at 9% price increase effective July 15th.
- Weatherbond has announced a price increase effective June 7th. Pending percentage.
SIDING:
CertainTeed has 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 June 24th with orders.
EWP:
LP has announced material price increases to go into effect on orders for the week of June 28th on all EWP products. Increase will vary by region and product line. Keep in contact with your salesperson for up-to-date information. They are also on allocation and experiencing extended lead times.
HARDWARE:
Price Increases: Steel prices have gone up over 50% recently and many manufacturers of fasteners have experienced extended lead times.
- Simpson Strong-Tie has announced a price increase of 12% effective June 15th.