WRLA Building Materials Update

November 5, 2021

To our valued industry partners,                                                                        

We continue to follow the factors impacting the supply chain and are providing updates to our members and industry partners. The following is an overview of the situation and it is important to continue communicating with your suppliers on lead times, etc.

Key factors impacting the supply chain continue to be global competition for raw materials. Additionally, transportation and labour shortages are impacting every aspect of the supply chain. Raw materials such as resins, paper, semiconductors, steel, copper and aluminum supplies continue to be low.

Resin production continues to be below capacity. Approximately one third have severely depleted stocks and it is predicted that significant change will not be realized until the third quarter of 2022.

Increases in fuel costs will continue to add inflationary pressure.

Lumber Products

Commodity lumber products have become more readily available, and the prices have stabilized. In terms of EWP, LVL supply continues to be a major limiting factor for new home construction as supply is tight. OSB supply remains tight. There is strong demand from the U.S. however, there is enough supply to meet current demand. Supply and demand are in balance for plywood.

Gypsum

Supply constraints continue. We should start to see slight improvements following the fire at CertainTeed’s Vancouver plant. Glass Roc exterior sheeting is on a longer lead time due raw material access for the matting.

Insulation

Demand for insulation continues to outstrip supply and major shortages continue for blowing wool and mineral wool. Product is on allocation and long lead times continue with price increases to be expected.

Code changes on new residential homes in addition to government energy efficiency programs place additional pressure as more insulation is required per home.

Roofing

Supply continues to remain tight through all manufactures and distributors of shingles and roofing-related products and is expected to run through the end of 2021.

Interior Doors

Raw material shortages of MDF stops, cardboard core and stile and rail components have been impacting the supply of interior doors through some suppliers. Expect price increases to be implemented in January 2022.

Mouldings

Moulding manufacturers have been on allocation from their suppliers since mid-winter and the situation is expected to worsen over the next three to six months before it improves. The increased demand has diminished domestic and imported access.

Anti-dumping and countervailing levies in the U.S. have created upward price pressure and ocean freight massively impacts all imported products.

Windows & Exterior Doors

As of the end of September, glass for windows and doors is no longer on allocation for some manufactures. Aluminum shortages are impacting sills and other components, creating delays and price increases. Hardware and access to sealant are also a new challenge.

Shipping containers continue to be an issue and have an impact on pricing. It is expected that shipping issues will continue into 2022.

Vinyl Siding and Aluminum

Price increases have continued as a result of raw material supply shortages, freight, pallet, labour costs and record high demand for product.

Steel Products (Siding, Roofing Products, etc.)  

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 and product from both international and domestic suppliers are still on allocation.

There doesn’t appear to be relief in sight for the remainder of 2021 as demand continues to outstrip supply. Steel will likely not stabilize until the appliance and auto industry are caught up on their supply.

Other Siding Products

The Hardie® Board products update for Western Canada includes the following:

• Production of Milled Artisan (Aspyre Collection by James Hardie™) is on pause until April 1, 2022.
• Discontinuation of the following product families in both primed and ColorPlus® Technology:
  • Hardie® Trim in all technologies
  • James Hardie® Stucco Panel
  • Hardie® Vented Soffit

The following products have been discontinued in the Provinces of Alberta, Saskatchewan and Manitoba:

• All Primed Hardie® Plank, Primed Hardie® Panel, Primed Hardie® Shingle and Primed Hardie® Soffit. This excludes Milled Artisan (Aspyre Collection by James Hardie™) and Revel® Panel System.

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.

Two – component spray foam continues to be an eight-to-10-week lead time item with limited production due to raw materials.

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
E: e2eae091Imo@1Dghn.tdIgLodF|

P: 204.770.2416