Market Update - January 18, 2021

The big story this week is steel. With hot rolled steel prices now exceeding 2008 highs, metal building component manufacturers have announced significant price increases citing an extremely unbalanced supply chain. Manufacturers are indicating that the 4 to 6% price hike slated for the first week of February will likely be the first of several increases and orders are likely to be scrutinized against historic purchases for the foreseeable future.

This week we also have updates from KraftMaid and Merillat Cabinetry both announcing a 2% price increase which will become effective for orders placed on or after February 15th. 

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Special Market Update - january 8, 2021

The primary message in our previous update 3 weeks ago was the unfortunate news that the lumber and plywood markets had reversed themselves and were heading back up. We deem it necessary to reiterate that message as all markets are continuing to show considerable strength with little to indicate they will give ground back any time soon. Mills are facing ongoing production issues at a time when the need for wood is very strong as the entire supply chain attempts to prepare for the 2021 season. You have heard it over and over that last year was like nothing our industry has ever experienced and that is absolutely accurate. So far, the beginning of 2021 has been just as bad if not worse than at any time last year. Lead times for many products are already pushing into March and all indications point to another strong year for building. We urge you to stay in close communication with your contacts including anyone you rely on to service your production needs.

Though many of the other building material manufacturers have already implemented or announced price increases, we expect additional increases in the first half of 2021. 

Those companies that usually have a once-a-year price adjustment may very well be implementing additional increases. Lead times continue to be a challenge and transportation woes are growing.

2020 is having a hard time letting go.