To Our Valued Customers:
We are facing unprecedented times in our industry due to tight material supply and pricing inflation. I thought it would be helpful to update all of you on the current situation with our major product categories.
Drywall – We have seen lead times get quite extended particularly on all specialty items. All drywall including the standard ½” and 5/8” items remain in short supply. We expect this tight product availability will be extended well into 2022. We just received notice that there will be another price increase on June 1st. This will be the third price increase in 2021. We anticipate two more price increases by the end of 2021. We have asked for our drywall suppliers for guidance on 2022 pricing and multiple manufacturers have indicated that we should anticipate a price increase quarterly from now through 2022.
Joint Compound – The winter storm that devastated the Texas area has created chemical shortages in many industries. Joint compound raw materials have been impacted by the petroleum chemical plants in Texas that were destroyed in the storm. Latex is in very short supply due to these plants being shut down. The manufacturers believe this problem may be resolved by the end of June.
Steel Framing – We have received a price increase every month since October 2020. Steel remains in very short supply. Our manufacturers have given us guidance that the extended lead times and short supply will continue throughout 2021.
Acoustical Grid – Much the same story as steel studs. Grid is made from similar gauge steel as steel studs. We expect supply will remain tight and price inflation will continue through 2021.
Insulation – Lead times are extended out as long as six months on some insulation products. Mineral wool is a bigger problem than fiberglass but both are operating in short supply and with extended lead times. Manufacturers believe this situation will continue throughout 2022.
EIFS – This product category is experiencing the same chemical issues as joint compound. This category should be more stable by the end of 2021.
In addition to the pricing and product availability issues detailed above many markets in North America are experiencing a shortage of freight carriers which is driving costs up. We will continue to try to find creative solutions to be in position to satisfy your product needs.
On a go forward basis we will work to quote our customers a current price along with a pricing indication for the next thirty days, but if our suppliers declare further costs increases or product shortages, we will be forced to limit our supply or increase our pricing to you.
We will update you on a quarterly basis as we work our way through the year. Thanks for you continued support.
Senior Vice President of Sales and Marketing