WRLA Building Materials Update

October 7, 2021

To our valued industry partners,                                                                        

Supply chain challenges continue to evolve and shift as we progress through 2021. Key factors that continue to add pressure are global competition for raw materials, transportation and labour shortages. Raw materials such as resins, paper, semiconductors, steel, copper and aluminum supplies continue to be low.

Container costs and port congestion continue to be an issue. Regular container pricing has jumped to $25,000 USD + and premium service container rates are $30,000 USD + with no end in sight as to when these will start to fall. The demand for product continues to be high and we learned of a new issue impacting production in China, as a result of power supply shortages, which will further exacerbate the supply chain disruptions.

Resin plants were working towards operating at capacity, however concerns regarding supply out of the Gulf Coast following Hurricane Ida continue. Raw materials were in transit when Ida hit, however October will prove to be more problematic. Sixty per cent of resin production was down following Ida and gains were negatively impacted with Hurricane Nicholas.

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 is no longer on allocation, pricing is rising in small increments and no shortages are expected in the near future.

Gypsum

Severe supply constraints continue and price increases need to be expected. Additional progress following the fire at CertainTeed’s Vancouver plant has been made on slight improvement of supply from that plant will be realized shortly.

Insulation

Demand for insulation continues to outstrip supply and major shortages continue for blowing wool and mineral wool. Product is on allocation; 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.

Steel Studs

Demand continues to outstrip mill capacity, which has led to major shortages. Price increases took effect on October 1.

Roofing

The situation varies with suppliers, however generally speaking all suppliers are experiencing shortages. Price increases recently took effect and this applies to accessories as well.

Interior Doors

Demand for interior doors has been significant, up almost double versus last year. The supply situation varies with suppliers as some have had to place allocations on product while others have invested in increasing production capacity.

Skin availability, staffing issues, transportation and access to raw materials are all factors as well. Price increases are to be expected, with varied lead times and shipping dates.

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 continues to be on allocation.

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 & Aluminum

Procurement of raw materials and increased costs continue to present challenges on availability and pricing.  Price increases and long lead times have been experienced as a result of raw material supplies, freight, pallet, labour costs and record high demand for product.

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.

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

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 a 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.

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 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