WRLA Building Materials Update

To our valued industry partners,                                                                        

Significant supply chain challenges and transportation backlogs are being created as a result of the wildfires taking place out west. Producers are facing a variety of challenges and are trying to manage the situation as best as they can. Some of the current issues include:

• An inability to harvest logs due to dangerous conditions. Logging will continue to become more difficult if the current conditions continue.
• Crippling of the transportation network in some cases as rail is not able to operate, creating backups at the Port of Vancouver.

Producers are managing the situation as best as they can, however a change in weather, wind, etc. can have impacts and we will continue to share information as producers are working closely with provincial wildfire services and the government to support a safe response.

Other issues that continue to impact pricing and supply are container costs and availability. Costs continue to rise and have increased by more than 400 per cent. Regular container pricing has jumped from $2,500 to $10,000 and with the demand for product, premium service is basically the only option and is $18,000 - $21,000 USD per container, depending on the container and region the shipment is coming from.

Labour shortages continue to be experienced, which creates delays and strain on an already stressed supply chain.

Resin-Based Products

Resins and petrochemical plants are not 100 per cent back online. Of the 168 plants shutdown in February, all but 30 are back online at some capacity but they are not all at 100 per cent production as of yet. We believe inventory normalization will take place in August/September.

This is important to note as resins impact a variety of product lines. Many of which are outlined in this memo.

Lumber Products

This is an area that we are following closely as a result of the wildfires and transportation delays created on an already strained supply chain.

The lack of rail accessibility means that trucking will need to be relied upon and some producers are experiencing order backlogs and inventory is being held up at some mills. We have seen lumber in some areas starting to be more readily available with pricing coming down.

Gypsum

Severe supply constraints continue and price increases need to be expected. The shortages will add further pressure to exterior sheathing in the summer months.

Insulation

Price increases expect to continue in all lines of insulation. Demand for mineral wool, blowing wool and batts continue to outstrip supply for the majority of 2021 and lead times will remain fairly consistent with what we have been experiencing.

Steel Studs

Demand outstrips mill capacity, which has led to major shortages. Price increases are expected.

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

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 and some manufactures have been investing heavily into capacity.

Mouldings

Pricing for mouldings expects to remain volatile with more inventory allocations to be expected. 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 & Aluminum

Price increases and long lead times have been experienced as a result of raw material supplies, freight, pallet and labour costs.

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.

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

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

Best regards,

Liz Kovach

President, WRLA
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P: 204.770.2416