WRLA Building Materials Update

August 26, 2021

To our valued industry partners,      

Supply chain challenges continue to impact the industry as demand continues to outpace supply. Raw material shortages continue to exist globally and as the demand continues to outpace supply, prices increase alongside. Raw materials such as resins, paper, semiconductors, steel, copper and aluminum supplies are low. Labour shortages continue and localized COVID outbreaks impact production capacity, which creates further pressure on an already stressed supply chain.

Containers are still an issue both from a supply and cost perspective. Costs continue to rise and have increased by more than 400%. Regular container pricing has jumped from $2,500 to $10,000. With the demand for product, premium service is basically the only option and are $18,000 - $31,000 USD per container depending on the container and region the shipment is coming from.

Labour shortages also continue to be experienced.

Resins

We learned that 154 of the 168 storm-damaged plants are operational. However, of those 154 operation plants, 130 remain under force majeure. This is making resin recovery slower than originally expected and is impacting virtually all categories. This will strain recovery into early winter. Particularly hard-hit and the slowest to recover will be latex-based paint products, aerosols and wall compounds. 

Lumber Products

Commodity lumber products have become more readily available, and the prices have stabilized. However, the wildfire situation in BC can change that. We continue to follow the wildfire situation.

In terms of EWP, LVL supply continues to be a major limiting factor for new home construction. While joist supply is improving, beam supply continues to be limited.

Gypsum

Severe supply constraints continue and price increases need to be expected. A fire was experienced at CertainTeed’s Vancouver plant and production has resumed but a at a reduced level and their network of plants will assist until all the repairs in Vancouver are complete.

Insulation

Price increases expect to continue in all lines of insulation. Demand for mineral wool, blowing wool and batt continues to outstrip supply for the majority of 2021. Product is on allocation and long lead times are to be expected.

Steel Studs

Demand outstrips mill capacity, which has led to major shortages.

Roofing

The situation varies with suppliers, some supply is on allocation while other manufacturers are in a good position. Granules have become an issue for some manufacturers, which could increase lead times as supply is picked up.

Expect price increases on roofing products as well as accessories since the plastic components are impacted by resin availability and challenges.  

Interior Doors

Demand for interior doors has been significant, essentially doubled in the past year. Price fluctuations continue as the supply of primed pine and MDF products continue to be a challenge for all manufactures.

The supply situation varies with suppliers. Pricing is expected to climb, and product allocations have been imposed by some manufactures while others have been able to increase their capacity to supply the market. Lead times and shipping will vary.

The demand for interior doors has almost doubled over the past year. As such, some manufactures have been investing heavily into capacity.

Mouldings

Pricing for mouldings expects to remain volatile and inventory allocations continue. Ocean freight, material shortages and increased costs from mills are driving the cost increases.

Windows & Exterior Doors

Expect some increased prices on some product lines. Resin availability has created some disruptions. Some suppliers have product more readily available than others. Steel doors have become an issue due to lack of material, however substitutions are readily available.

Vinyl Siding and Aluminum

Price increases and long lead times have been experienced as a result of raw material supplies, freight, pallet, labour costs and record high demands for product. Vinyl products are still on allocation and are impacting production. Back orders are still at record levels.

Steel Siding

Steel prices continue to escalate and lead times will vary based on supplier availability of product. Some colours are low or out of stock. Demand for product continues to be high.

Paints & Adhesives

There continues to be shortages and issues related to resin as well as spray cans, so products are on allocation and price increases have been experienced as result of shortages and freight costs.

Other products seeing shortages:

Concrete products such as retaining walls, paving stones and slabs have a limited offering and demand has been outstripping supply.

Copper shortages and increased prices continue and are expected to do so for the remainder of the year.

Two-component spray foam is on a shortage allocation basis with all manufactures due to raw materials. Expect longer lead times.

Continue to communicate your needs with your product suppliers to ensure that your needs are covered and expected timelines can be provided.

Fasteners continue to be in high demand and short supply due to supply chain issues. Price increases are expected to continue into the fall if the container issues continue.

With microprocessors and lithium batteries being impacted by supply challenges, power tool manufactures cannot fully supply the increased demand.

Please continue to communicate issues with us. We are working with government where we can keep them informed of challenges. If you have questions, comments or concerns please do reach out.
 

Best regards,

Liz Kovach

President, WRLA

e2eae241wZ5.758BDZmBBdtULkwBa5k@|

204.770.2416